B.C. oil and gas land sales total CAN$ 3 million

The August 2014 natural gas and petroleum rights sale in British Columbia, Canada, resulted in almost CAN$ 3 million in bonus bids, contributing to the fiscal year total with over CAN$ 43 million in total land sales.

The sale on 13 August offered 13 parcels in northeast B.C. covering 7737 hectares. All parcels were sold, with an average price of CAN$ 387 per hectare.

Key parcels in this month’s sale included:

• Two drilling licences in the Buick Creek area, approximately 65 km northwest of Fort St. John. Collectively, these two parcels earned more than CAN$ 832,000 in tender bonus at average prices ranging from CAN$ 359 to CAN$ 376 per hectare.
• One drilling licence in the Flatrock area, approximately 25 km northeast of Fort St. John. This parcel earned more than CAN$ 417,000 in tender bonus at an average price of CAN$ 528 per hectare.
• One lease about 15 km north of Dawson Creek. This parcel earned more than CAN$ 548,000 in tender bonus at an average price of CAN$ 2116 per hectare.

Drilling licences provide the exclusive right to explore for petroleum and natural gas by drilling wells, and are acquired by the successful bidder at the Crown sale. 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.

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/15082014/british-columbia-natural-gas-land-sales-in-august-1220/