INFORMATION BULLETIN

2012ENER0093-001177 Aug. 16, 2012

Ministry of Energy and Mines and Minister Responsible for Housing

 

$8.3 million for August petroleum and natural gas sale

 

VICTORIA – The August 2012 petroleum and natural gas sale resulted in over $8 million in bonus bids, bringing the calendar year total to over $95.8 million.

 

The August sale offered 17 parcels in northeast B.C. covering 18,729 hectares. Thirteen parcels covering 15,157 hectares were sold. The average price was approximately $550 per hectare.

 

Key parcels in this month’s sale included:

 

·         A drilling licence in the Laprise Creek area, about 145 kilometres north of Hudson’s Hope. This drilling licence earned more than $5 million in tender bonus at a price of $730 per hectare.

·         Two drilling licences in the Sunset Prairie area, about 35 kilometres south of Fort St. John. Collectively, these drilling licences earned more than $1.7 million in tender bonus at an average price of $830 per hectare.

·         One lease in the Parkland area, about 20 kilometres southeast of Taylor. This lease earned more than $285,000 in tender bonus at a price of $1,103 per hectare.

 

Drilling licences provide the exclusive right to explore for petroleum and natural gas by drilling wells. They are acquired by the successful bidder at the Crown sale, and primary terms are three, four or five years, depending on location.

 

Leases provide the exclusive right to produce petroleum and natural gas. They are acquired by the successful bidder at the Crown sale, or selected from permits and drilling licences. Primary terms are five or 10 years, depending on location.

 

Petroleum and natural gas activities play a vital role in B.C., generating significant wealth and employing thousands of British Columbians. Revenues from rights sales provide immediate economic benefits, funding social programs and infrastructure development in communities throughout the province.

 

The next sale, scheduled for Sept. 12, 2012, will offer 14 parcels covering 5,728 hectares.

 

Complete results of the sale are posted at: http://www.empr.gov.bc.ca/Titles/OGTitles/SaleResults/Pages/default.aspx

 

 

Contact:

Sandra Steilo Ministry of Energy and Mines 250 952-0617

 

Connect with the Province of B.C. at: www.gov.bc.ca/connect