BN12-24: NOVEMBER OIL AND GAS RIGHTS NET $9.1 MILLION

Nov. 23, 1999

VICTORIA - The November sale of oil and gas rights brought in $9.1 million in revenue to the province, Premier and Energy and Mines minister Dan Miller announced Monday.

Revenues from oil and gas rights sales now stand at $152 million for the first 11 months of the year.

And total revenues, including royalties for this fiscal year are expected to be more than $550 million, up from $360 million last year, a 50 per cent increase.

The sale offered 32 drilling licences and 22 leases covering a total of 46,095 ha. in northeastern British Columbia. 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.

Twenty-five of the licences were sold, covering 32,563 ha. The top price of $683 per hectare came from Meridian Land Services (90) Ltd. for a parcel 112 km. northwest of Fort St. John near Aitken Creek North and Jedney gas fields. The total bid for this 1,406-ha. licences was $960,734.

Eight of the leases were sold, covering 2,095 ha. The top price for a lease of $1,464 per hectare was paid by Anderson Resources Ltd. for a parcel five km. northeast of Fort St. John in the Cecil Lake gas field. The total bid for this 259-ha. lease was $379,148.

The next sale of oil and gas rights is set for Dec. 15 and will offer five parcels covering 38,869 ha. in southeastern British Columbia and 80 parcels covering 97,921 ha. in northeastern British Columbia.