FORT ST. JOHN, B.C. – In what could be another sign of improvement for the beleaguered oil and gas industry in Northeast B.C., January’s oil and gas land rights sale numbers are some food for thought.
In January, a total of 7,764 hectares of land rights were sold by the provincial government comprised entirely of drilling licenses. With an average price per hectare of $5,103.27, the total for the month was $39,652,979.27. That number is significant, as it is $24,015,480.60 more than the land rights sales for all of 2016. Last year’s total of $15,637,498.60 was the worst year on record for land rights sales in B.C., more than $1.5 million less than the previous lowest year in 1982.
In last month’s sale, one company ended up purchasing the bulk of the land rights Plunkett Resources Ltd. made four of the eight purchases, including the purchase of 2,331 hectares at over $15,000 per hectare, which was nearly three times the average rate.