November oil and gas lease sales $54.5 million for BC

Top sale brought $42,406,075 for 6,148 hectares at Laprise Creek

VICTORIA – The November 2013 natural gas and petroleum sale resulted in $54.5 million in bonus bids, bringing the calendar year total to over $217 million.
The November 13, 2013, sale offered 10 parcels in northeast B.C. covering 12,597 hectares. Nine parcels were sold, with an average price of approximately $4,522 per hectare. The key parcels in this month’s sale included:
One drilling licence and three leases in the Laprise Creek area, about 140 kilometres northwest of Fort St. John. The drilling licence earned more than $42.4 million in tender bonus at a price of approximately $6,898 per hectare. The three leases earned more than $2.2 million.
This big money was spent by Charter Land Services which purchased 6,148 hectares for a total price of  $42,406,075 located in the Artex-Halfway-Doig Zone within Treaty 8 and Blueberry First Nations consultation area.
The second largest purchase was by Windfall Resources for 3,106 hectares for bonus bid of just under $9 million in tender bonus at a price of $2,888 per hectare.
The Halfway First Nation has advised that there must be a request for engagement prior to on-the-ground activities. Parcels may overlap trapline registration to first nation community members. The parcel is located within an area unidentified by the Saulteau First Nation as traditional lands.
Drilling licences provide the exclusive right to explore natural gas and petroleum by drilling wells. They are acquired by the successful bidder at the Crown sale. Primary terms are three, four or five years, depending on location.
Leases provide the exclusive right to produce petroleum and natural gas. They are acquired by the successful bidder at the Crown sale, or selected from permits and drilling licences. Primary terms are five or 10 years, depending on location.
The next sale, scheduled for December. 11,2013, will offer 15 parcels covering 11,960 hectares.
Sales year-to-date are approximately $219 million for the province.

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