We should find out today if the recent drop in natural gas prices, below five dollars per million BTU, has dampened the drilling interest of energy companies in Northeast BC.
22 parcels covering more than 15,000 hectares are expected to be on offer today, in the February sale of Oil and Gas land rights.
It will follow an encouraging January sale, which generated more than 13 million in bonus bids, almost double the amount of the January sale last year.
However, today’s sale will have to do better than that to top last February’s sale of 17.6 million.
In addition it’s not likely to come close, to the 2008 February sale which generated about 117 million.
The price of natural gas yesterday dropped to 4.78 cents U.S.
Once again we note, it is generally believed a price of eight dollars needs to be sustained for more than three months to instil confidence in producers to up their drilling programs.