Alberta logs another billion

In this age of “every dime a prisoner,” the Alberta government drew some comfort from again squeaking past the C$1 billion mark in its annual sales of exploration lands.

By the barest of margin, it edged past what was once a magic number by collecting C$18.21 million in its second October auction — second only to a mid-June return of C$17.66 million as the low-water point for 2012.

The government still has another three auctions to solidify its position, but not enough to come even close to last year’s C$3.6 billion.

A total of 46,014 hectares (113,700 acres) changed hands Oct. 31 at an average C$395 per hectare, pushing the year to date total to 2.72 million hectares at a per-hectare average of C$369, a far cry from the comparable numbers in 2011 of 3.88 million hectares at an average C$833.

Topping the bidding was the C$3.32 million paid by Sandstone Land & Mineral for 768 hectares, with an average C$4.321 per hectare.

Steve Hager, senior exploration analyst at Canadian Discovery, said the license at Kakwa in northwestern Alberta includes three sections of petroleum and natural gas rights, emphasizing that the Montney formation remains a popular target for oil and liquids-rich gas.

—Gary Park