Land in Alberta worth less than BC, following royalty changes

Must Read

Calfrac makes changes to recapitalization plan in an effort to woo shareholders

CALGARY — Calfrac Well Services Ltd. says its board has formally rejected a takeover offer by Texas-based Wilks Brothers...

NDP, Greens divided on pace of child care improvements in B.C. election campaign

VANCOUVER — A policy difference over child care between the NDP and Greens has emerged in the B.C. election,...

Kathleen Connolly to take on incumbent Mike Bernier in Peace River South

DAWSON CREEK, B.C. - Two candidates have announced they are running for MLA in Peace River South,...

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.

- Advertisement -

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.

- Advertisement -

Community Interviews with Moose FM

Subscribe to our newsletter

Get the latest news delivered to your mailbox every morning.

More Articles Like This