Recent History – 2000
Sept. 25, 2000
DAWSON CREEK — The September sale of oil and gas rights brought in $51.7 million in revenue to the province, Energy and Mines Minister Dan Miller announced Friday.
The total is well up from the $30 million reaped for the same month last year, which, in turn, was four times higher than the revenue generated by the September 1999 sale.
“The impetus to stimulate investment and double oil and gas production in the next decade was provided by the Oil and Gas Initiative introduced by the provincial government in May 1998,” said Miller. “Sales of oil and gas rights demonstrate the rising confidence and growth of the industry and ultimately help to increase oil and gas supplies.”
“Robust land sales will lead to increased production, which is the best defence against higher prices in the long term.”
The September sale offered a total of 62 drilling licences and 40 leases, covering 140,388 hectares in northeastern B.C.
Drilling licences are forms of tenure that provide exclusive rights to apply for permission to drill oil and gas wells in a defined area.
Leases, in addition to providing exclusive drilling application rights, also convey production rights.
Fifty-seven of the licences were sold. The largest bid of $2,612,232 for a drilling licence came from Alterren Land Services Ltd. for a parcel 60 kilometres southeast of Fort Nelson. The price per hectare for this 4,334-hectare parcel was $603.
The top price per hectare of $900 came from Antelope Land Services Ltd. for a parcel 60 kilometres northwest of Hudson’s Hope. The total bid for this 1,114-hectare licence was $1,029,714.
Thirty-five of the leases were sold. The top price for a lease of $1,504 per hectare was paid by Western Land Services Co. Ltd. for a parcel 20 kilometres southwest of Fort Nelson. The total bid for this 269-hectare lease was $404,517, which was also the largest bid for a lease.
The next sale of oil and gas rights is set for Oct. 18 and will offer 66 parcels covering 92,104 hectares in northeastern B.C.