British Columbia sold $610 million in oil and gas rights in July, a record for any month that also helped the province surpass the previous annual record in just four months.

The province said Thursday its year-to-date total for the 2008-09 financial year has now hit a record $1.3 billion. That is for the April-July period and surpasses the $1.2 billion in sales reached for the full year ended March 31, 20008.

The July sale offered 149 parcels in northeastern B.C. covering 134,196 hectares, and sold 146 parcels covering 132,740 hectares. The average price per hectare was $4,596, the province said.

“This month’s phenomenal sale once again demonstrates that British Columbia is a premiere jurisdiction for oil and gas investment,” B.C. energy minister Richard Neufeld said in a release Thursday.

“I am certain that these record-breaking results will continue to attract new interest in the coming months.”

The huge amount of cash flowing into B.C.’s coffers suggests more investment continues to be siphoned away from neighbouring Alberta, which historically is the heart of Canada’s oil and gas industry.

Several energy players have been flocking to northeastern British Columbia in a bid to exploit the billions of cubic feet of natural gas trapped in the region’s rock and sand.
“These unparalleled sales are supporting the ongoing economic health of our province,” Neufeld said.

“And the revenue from these sales funds vital social programs and infrastructure development in communities throughout British Columbia.”

T he province said key parcels in the sale included five drilling licences located 45 kilometres west of Dawson Creek with bids of over $32,500 per hectare for a total of $482.6 million.
“These parcels include rights to the Montney formation,” the province said.

It said three lease bids of nearly $25,000 per hectare for a total of $19.4 million were awarded in the Sunset Prairie area, approximately 25 km south of Fort St. John.

Drilling licences provide the exclusive right to explore for petroleum and natural gas by drilling wells, they are acquired by the successful bidder at the Crown sale and primary terms are three, four or five years, depending on location.

The next sale is scheduled for Aug. 13 and will offer 136 parcels covering 115,879 hectares.

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