Shale gas bidding tops B.C. sale

The run on shale gas prospects in northeastern British Columbia continued unabated at the province’s Aug. 15 land sale, with successful bids topping C$78 million for an area north of Fort Nelson.

Scott Land & Lease, acting as broker for unidentified bidders, led the way, acquiring 14 parcels for a combined C$39.16 million, including C$10.61 million for one 8,500-acre offering that averaged C$1,250 per acre.

The surging competition for shale gas rights was reflected in the rising per-acre price.

Scott Land made a top bid of C$915 per acre in March for a multi-section intersecting block and slightly less for an adjoining parcel, while Sekani Resources paid an average C$902 per acre for another adjoining parcel.

The shale gas rights represented more than half the total of C$149 million collected at the sale — easily the best result for 2007 — pushing the year-to-date tally to C$313.48 million, compared with C$427.82 million at the same time last year.

Interest in shale gas dominates the Sept. 12 sale, with postings in the Horn River basin and Cordova Embayment totaling 324,000 acres.

Leading operators in the Horn River area are EnCana, EOG Resources and Nexen.

—Gary Park