Recent History – 1999
May 5, 1999, By Daily News Staff
The April sale of oil and gas rights brought $12.5 million in revenue to the province, Energy and Mines Minister Dan Miller announced on Monday.
The figure represents a 172 per cent increase over last year’s sale, which brought in $4.6 million, but is still below that of the April 1997 sale which reaped $19.8 million.
“It is an indication that the oil and gas industry recognizes the importance and value of B.C.’s resources,” Miller said of the increase over last year.
The only permit offered for sale was sold to Mineral Consulting Services Ltd. for $563,555. The 6,383 hectare parcel is 35 kilometres northwest of Fort Nelson.
Of the 35 drilling licences on the block, 34 were sold, covering 50,472 hectares. The top price of $1,310 per hectare came from Antelope Land Services Ltd. for a parcel near the Ring gas field, 160 kilometres northeast of Fort St. John. The total bid for this 830-hectare licence was $1,087,300.
The top total bid for a drilling licence of $1,400,422 came from Marathon Canada Ltd. for a parcel 50 kilometres northwest of Hudson’s Hope in the Graham gas field. The price per hectare for this 2,287 hectare licence was $612. Of the 28 leases available, 20 were sold, covering 5,694 hectares.
The top price of $2,517 per hectare for a lease was paid by Western Land Services Co. Ltd. for a parcel close to the Cutbank gas field, 50 kilometres south of Dawson Creek. The total bid for this 295-hectare lease was $636,244, which was also the top total bid for a lease.
Sekani Resources Ltd. paid the second highest price of $1,707 per hectare for an adjacent 295-hectare parcel. The total bid for this parcel was $503,435.
Drilling leases 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.
The next sale of oil and gas rights is set for May 26 and will offer 18 drilling licences and 21 leases. All of the parcels are in northeast B.C.