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Home News Land in Alberta worth less than BC, following royalty changes

Land in Alberta worth less than BC, following royalty changes


A recent report says Alberta’s soon to be implemented royalty changes will cause land in Alberta to deliver 1/4 the value of similar land in BC.

Calgary investment bank Peters & Co. concludes that the new royalty rates in Alberta, that start on January 1st, 2009, have caused more investment in BC. So far this year over $2 billion has been spent in BC on land sales compared to only $600 million in Alberta.

The Alberta Energy Ministry says in some circumstances royalty rates are higher in Alberta, but there are more active rigs working than BC and Saskatchewan combined.

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The study by Peters & Co. used a 100 well Montney development drilled over a five year period. Following the study land in BC could be worth 27 per cent more than the identical land in Alberta.

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