Stingray2004
Dec 17, 2007, 8:00 PM
Interesting article... BC earned $1.05 billion for oil and exploration rights in 2007... compare that to Alberta at $1.29 billion for 2007.
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B.C.'s blowout land sale
Avid Ebner, December 13, 2007 at 2:05 PM EST
Well, well. British Columbia's haul from the sale of new oil and natural gas exploration rights smashed through $1-billion for 2007, it was revealed Thursday when the province announced the results from the final sale of the year. In one swoop, B.C. took in $401-million, the second-biggest sale ever (after September, 2003, when EnCana Corp. alone spent $407-million to get its Cutbank Ridge land as B.C. took a total of $418-million).
The big haul was driven by four main bids for exploration blocks in northeastern British Columbia, accounting for $263-million of the $401-million. While rising royalties in Alberta might be one factor, in this case it looks like by far the big reason is confidence in future natural gas production in the region around Tumbler Ridge and Dawson Creek. The results very clearly suggest one big player has positioned itself strategically on a hoped-for gas field--not because royalties might be lower in B.C. than Alberta.
With the final burst of $401-million, B.C.'s total 2007 take is $1.05-billion, a record, far surpassing the $647-million reached in 2003.
More significantly, the number gets B.C. much closer to Alberta, which took in $1.29-billion in 2007, its third-best ever but more than 60 per cent less than the record of $3.43-billion in 2006 and $2.26-billion in 2005.
Rising royalties in Alberta is a factor. The big gas plays these days run along the Foothills of the Rocky Mountains, starting roughly southwest of Edmonton near Jasper National Park and carrying north-eastwards into B.C., up towards and past Fort St. John. Capital for drilling can easily migrate.
Drilling in northeast B.C. has slowed because of lower natural gas prices, but it's obvious from Thursday's results that at least someone, if not several companies, made a big move for future exploration. Active operators in the region include all the big names, EnCana, Canadian Natural Resources Ltd., Talisman Energy Inc., as well as fast-growing little guys, led by Duvernay Oil Corp.
(Subsurface exploration rights for oil and natural gas, and oil sands, are sold by auction. Companies make requests of governments to post Crown land for bids. Bidding is blind and the highest bid wins -- but no one knows how close it was, somewhat encouraging big bids. This is good for provincial treasuries, with B.C. getting a pre-holiday $401-million windfall!)
______________________________________________________________
B.C.'s blowout land sale
Avid Ebner, December 13, 2007 at 2:05 PM EST
Well, well. British Columbia's haul from the sale of new oil and natural gas exploration rights smashed through $1-billion for 2007, it was revealed Thursday when the province announced the results from the final sale of the year. In one swoop, B.C. took in $401-million, the second-biggest sale ever (after September, 2003, when EnCana Corp. alone spent $407-million to get its Cutbank Ridge land as B.C. took a total of $418-million).
The big haul was driven by four main bids for exploration blocks in northeastern British Columbia, accounting for $263-million of the $401-million. While rising royalties in Alberta might be one factor, in this case it looks like by far the big reason is confidence in future natural gas production in the region around Tumbler Ridge and Dawson Creek. The results very clearly suggest one big player has positioned itself strategically on a hoped-for gas field--not because royalties might be lower in B.C. than Alberta.
With the final burst of $401-million, B.C.'s total 2007 take is $1.05-billion, a record, far surpassing the $647-million reached in 2003.
More significantly, the number gets B.C. much closer to Alberta, which took in $1.29-billion in 2007, its third-best ever but more than 60 per cent less than the record of $3.43-billion in 2006 and $2.26-billion in 2005.
Rising royalties in Alberta is a factor. The big gas plays these days run along the Foothills of the Rocky Mountains, starting roughly southwest of Edmonton near Jasper National Park and carrying north-eastwards into B.C., up towards and past Fort St. John. Capital for drilling can easily migrate.
Drilling in northeast B.C. has slowed because of lower natural gas prices, but it's obvious from Thursday's results that at least someone, if not several companies, made a big move for future exploration. Active operators in the region include all the big names, EnCana, Canadian Natural Resources Ltd., Talisman Energy Inc., as well as fast-growing little guys, led by Duvernay Oil Corp.
(Subsurface exploration rights for oil and natural gas, and oil sands, are sold by auction. Companies make requests of governments to post Crown land for bids. Bidding is blind and the highest bid wins -- but no one knows how close it was, somewhat encouraging big bids. This is good for provincial treasuries, with B.C. getting a pre-holiday $401-million windfall!)