$8 million January natural gas and petroleum sale
By Nelson Daily Editor
The January 2011 natural gas and petroleum sale resulted in $8 million in bonus bids.
The Jan. 19 sale offered 25 parcels covering 32,225 hectares, and sold 21 parcels covering 21,069 hectares. The average price for this sale is approximately $375 per hectare.
The key parcels in the sale included:
• Two drilling licences located in the Dahl gas field, approximately 130 kilometres north of Fort St. John, with a total bonus bid of almost $2 million for 10,844 hectares.
• A drilling licence located near the Umbach gas field, approximately 90 kilometres northwest of Fort St. John, with a per-hectare bid of $1,104 for a total of almost $933,000.
• One lease located near the Kobes gas field, approximately 65 kilometres northwest of Hudson’s Hope, with a per-hectare bid of $1,049 for a total of nearly $300,000.
Drilling licences provide the exclusive right to explore for natural gas and petroleum 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 natural gas and petroleum. 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.
The next sale, scheduled for Feb. 23, 2011, will offer eight parcels covering 3,924 hectares.
Complete results of the sale are posted on the website of the Ministry of Energy: http://www.empr.gov.bc.ca/Titles/OGTitles/SaleResults/Pages/default.aspx
