September's oil and gas rights sale brings in $8.7 million

More than $8.7 million in bonus bids were made in September’s oil and gas rights sale.

This brings the calendar year to date total to $330.6 million.

At this time last year, September’s oil and gas rights sale brought in 220 million dollars, which brought last year’s calendar date to a record-setting two billion dollars.

The sale on Wednesday offered 34 parcels covering more than 15 thousand hectares, and sold 34 parcels, also covering more than 15 thousand hectares.The average price per hectare was $549.

The key parcels in the sale included:

–  Three drilling licenses and two leases in the Graham River area, approximately 50 km northwest of Hudson’s Hope. The licenses totaled nearly $4.5 million. Bids ranged from $1,425 to $2,168 per hectare.

 –  Two leases in the Horn River Basin, 15 km west of the Cabin Gas Field, and approximately 75 km northeast of Fort Nelson, with bids over $1,245 and $1,926 per hectare, for a total of over $837,620.

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

The next sale is scheduled for Oct. 21, 2009, and will offer 62 parcels covering 66,837 hectares.