August rights sale shows strong interest in shale gas
NEWS RELEASE
Ministry of Energy, Mines and Petroleum Resources
Aug. 17, 2007
VICTORIA – The Aug. 15, 2007 sale of oil and gas rights in British Columbia generated $149 million in bonus bids and had an average price per hectare of $1,122, Energy, Mines and Petroleum Resources Minister Richard Neufeld announced today.
"This high level of land activity shows industry’s enormous confidence in B.C.," said Neufeld.
"New projects are being undertaken because we have created a competitive investment climate here and worked hard to attract interest in underdeveloped areas and unconventional resources."
One hundred and seventy-seven parcels, covering 141,784 hectares, were offered, with bids accepted on 160. The Aug. 15 sale was the third largest overall in British Columbia’s history.
The August sale reflects growing interest in shale gas plays in and around the Horn River Basin and Cordova Embayment. Total sales in the Horn River region exceeded $125 million in 2006, although land sales throughout the past decade had amounted to less than $10 million per year.
"Developing the rich resource potential of areas like Horn River north of Fort Nelson will benefit British Columbia’s economy for years to come," said Neufeld.
The Province is delivering on the BC Energy Plan announced in February 2007, becoming one of the most competitive oil and gas jurisdictions in North America.
New royalty programs such the Net Profit Royalty Program and Infrastructure Royalty Credit Program are helping to stimulate exploration and ensure infrastructure is available to support oil and gas development.
The next sale is scheduled for Sept. 12, 2007 and will offer 81 parcels, covering 97,815 hectares.
More than half of the acreage posted for September is in the Horn River Basin and Cordova Embayment.
Complete results of the sale are posted on the Ministry of Energy, Mines and Petroleum Resources website at www.em.gov.bc.ca/subwebs/landsale/results/default.htm.
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Media contact:
Jake Jacobs
Public Affairs Officer
Ministry of Energy, Mines and Petroleum Resources
250 952-0628
250 213-6934 (cell)