Big Oil and Gas rights sale

B.C.’s ailing economy got a major boost yesterday from the October sale of oil and gas land rights. 

The biggest sale this calendar year, it resulted in slightly more than $370 million in bonus bids, which is more than the previous nine months combined.  The sixth largest monthly sale on record, it also pushed the calendar year-to-date total, to just over $700 million.

In addition, it was the second-highest per-hectare sale in B.C. history, with the 58 parcels sold covering just over 65 thousand hectares, making the average per-hectare price $5,625.

Four drilling licences about 20 kilometers north of Hudson’s Hope, went for more than $201 million, with bids running as high as $18,650 per hectare.  The sale more than doubled the sale of last October, which totalled just under $152 million. 

However, with just two monthly sales left in the calendar year, it’s still unlikely the 2009 total will be anywhere near the 2008 record of $2.66 billion.

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