2008 OIL AND GAS RIGHTS SALES A RECORD $2.66 BILLION

Ministry of Energy, Mines and Petroleum Resources

NEWS RELEASE
For Immediate Release
2008EMPR0071-001883
Dec. 11, 2008

VICTORIA - The December sale of oil and gas rights resulted in a total of over $91.7 million in bonus bids, bringing the 2008 calendar year total to a record high $2.66 billion and building on the fiscal year record of $2.38 billion, Energy, Mines and Petroleum Resources Minister Richard Neufeld announced today.

"This sale puts a positive final note on a very successful year for B.C.'s oil and gas industry," said Neufeld. "In these times of global economic uncertainty, it is comforting that B.C.'s oil and gas industry provides funding that ensures the stability of health care, education and many other programs that sustain the well-being of British Columbians."

The Dec. 10 sale offered 56 parcels covering 79,022 hectares, and sold 44 parcels covering 60,649 hectares. The average price per hectare was $1,512.

The key parcels in the sale included:

* Two drilling licenses with bids of $4,134 and $7,118 per hectare, respectively, totalling over $19.5 million, located between the Wolverine and Grizzly north fields, approximately 20 km south east of Tumbler Ridge.

* A group of three drilling licenses located within the Horn River Basin, about 40 km north of Fort Nelson, generated over $46 million at average prices ranging from $1,721 to $4,279 per hectare.

* A fourth drilling licence parcel within the Horn River Basin, located at the B.C./NWT border, 130 km north of Fort Nelson, earned over $12 million in tender bonus and averaged $4,345 per hectare.

* Over $28,900 per hectare, for a total of over $7.6 million, was received for a lease parcel located beside the Sunset Prairie Field, approximately 30 km south of Fort St. John.

Additionally, this sale sets new records for the highest per hectare amount ($28,974) and highest tender bonus ($7.65 million), breaking the previous records set in July 2008.

"Since 2001, the oil and gas industry in B.C. has seen unprecedented growth and investment," said Neufeld. "Through effective incentives, programs and royalty structures, B.C. has established itself as one of the most competitive oil and gas jurisdictions in North America."

Drilling licences provide the exclusive right to explore for petroleum and natural gas by drilling wells. They are acquired by the successful bidder at the Crown sale, and primary terms are three, four or five years, depending on location.

Leases provide the exclusive right to produce petroleum and natural gas and 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 is scheduled for Jan. 14, 2009 and will offer 18 parcels covering 11,938 hectares.

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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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