The first monthly sale of BC oil and gas land rights in the new fiscal year was held on Wednesday, and it was the biggest so far this calendar year.
Bonus bids totalled just over 18 million dollars, bringing the year-to-date total to about 58 million.
However, that was also less than 50 percent of the April sale last year, which featured sales worth more than 39 million. In addtion, the four month total is only about 20 percent, of the 290 million, for the first third of last year.
How much the drop in sales has to do with sagging natural gas spot prices is a matter of opinion…but, they ended trading yesterday, at 3 dollars and 60 cents, per million British Thermal Units. That’s more than 4 dollars below, what is generally accepted, as the level, needed to be sustained for three months, in order to instill producer confidence.