The October 2014 natural gas and petroleum rights sale in B.C. resulted in over $14.3 million in bonus bids, contributing to the fiscal year total with over $82 million in total land sales.
The Oct. 8, 2014, sale resulted in twenty four parcels being sold, covering 14,360 hectares with an average price of $997 per hectare.
Key parcels in this month’s sale were the two drilling licences in the Laprise Creek area, about 135 kilometres northwest of Fort St. John. These two licences collectively earned more than $6.6 million in tender bonus at average prices of $3,980 and $4,000 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 3, 4 or 5 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.
Natural gas and petroleum activities play a vital role in B.C. by 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 Nov. 5, 2014, will offer 30 parcels covering 31,496 hectares.
Press Release, October 10, 2014; Image: Kitimat LNG