B.C.s latest monthly oil and gas rights sale set a new record on Wednesday. The total for the May sale? $441 million. The majority of that came from drilling licences, with one licence in the Stewart Creek area, which is about 40 kilometres southwest of Fort St. John, going for $140 million, or $25,383 per hectare. Not only did the price fetched for the whole package hit a record, at $9,538 so did the average price paid per hectare. This beat the average price per hectare record set last December of $2,915. The Horn River Basin, which has attracted such players as EnCana and Nexen, also continues to be in demand with resource companies thanks to its potential as a shale gas play.
This new total, which is for the second monthly sale in fiscal 2008-09, brings B.C.s annual revenue from oil and gas rights sales to more than $480 million. That leaves the province well on track to beat last year’s total of $1.2 billion.