It resulted in the purchase of eight drilling licenses and nine leases, resulting in only $9.3 million in bonus bids. The average price per hectare for the 17 parcels was $950.
That made it the third monthly sale this year to come in under $10 million, and it left the six month calendar year total at $127.6 million.
Drilling licenses provide the exclusive right to explore for petroleum and natural gas, and depending on well location, primary terms are three, four, or five years. Leases provide the exclusive right to produce natural gas and petroleum and primary terms – again depending on location – are five or 10 years.
These parcels are also a prime source of government revenue, and after three months of bonus bids totalling more than $103 million, this sale has to come as a major budget shock to Finance Minister Mike de Jong, especially if it’s an indicator of what’s to come in the second half of the year.