$1 billion fiscal year sets rights sales record

News Release
BC Government
February 22, 2008

VICTORIA – The Feb. 20, 2008 sale of oil and gas rights brings B.C.’s fiscal year total to an all-time high of $1.07 billion. The $116.9 million generated in bonus bids makes it the first time the province has reached over $1 billion in land rights revenues in a fiscal year and follows a billion-dollar, record-setting 2007 calendar year, Energy, Mines and Petroleum Resources Minister Richard Neufeld announced today.

“British Columbia is attracting unprecedented interest and investment from oil and gas companies,” said Neufeld. “Over a billion in revenue from oil and gas rights sales contributes to B.C.’s bottom line, the long-term success of our province and the benefits of living in the best place on Earth.”

The fiscal year total of oil and gas rights for 2007-2008 surpasses the previous record of $625.7 million set in 2003-2004.

Sixty-six parcels covering 53,555 hectares were offered in the Feb. 20, 2008 sale, and bids were accepted on 65 parcels for an average price of $2,214 per hectare.

The key areas in the sale were a group of six drilling licences located within the Horn River Basin north of Fort Nelson that generated bids totalling more than $67 million. In addition, two drilling licences south of Fort St. John collected over $18.5 million on average prices in the $10,000 per hectare range. A lease parcel near the Buick Creek field north of Fort St. John earned over $1 million averaging over $3,764 per hectare.

The next sale is scheduled for March 26, 2008 and will offer 81 parcels covering 89,752 hectares.

Complete results of the sale and additional statistics are posted on the Ministry of Energy, Mines and Petroleum Resources website:
www.em.gov.bc.ca/Subwebs/Landsale/results/default.htm

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Media contact:
Jake Jacobs
Public Affairs Officer
Ministry of Energy, Mines and Petroleum Resources
250 952-0628
250 213-6934 (cell)

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