Recent History – 2001
Feb. 26, 2001
DAWSON CREEK — The provincial government continues to ride the oil and gas boom. The February sale of oil and gas rights brought in $126 million in revenue, Energy and Mines Minister Glenn Robertson announced Friday.
That’s well up from the $7.2 million generated through the February 2000 sale, and $3.7 million for February 1999. It’s also an improvement over the January 2001 sale, which raised $55.4 million, and brings the year-to-date total to $181.4 million.
The total revenue raised for 2000 was $249.4 million, and $176 million in 1999.
“The ongoing strength of the oil and gas industry in B.C. means the province will be able to continue to support its key budget priorities like health care and education,” Robertson said in a news release. “For the future, a renewed interest in exploration and development helps to ensure we can continue to meet increasing demands for gas.”
The February sale offered a total of 95 drilling licences and 54 leases covering 165,616 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.
Ninety-one of the licences were sold.
The top bid of $4.7 million for a drilling licence came from Sekani Resources Ltd. for a parcel 120 kilometres south of Dawson Creek in the Ojay gas field. The price per hectare for this 1,796-hectare parcel was $2,627.
The highest price of $3,560 per hectare was paid by Western Land Services Co. Ltd. for a 595-hectare drilling licence 100 km. south of Dawson Creek. The total bid for this parcel was $2,118,349.
All of the leases were sold.
The top price for a lease of $3,561 per hectare was paid by the Soo Line Resource Group Ltd. for a parcel 70 km. north of Hudson’s Hope near the Townsend gas field. The total bid for this parcel was $1,014,953.