The rush to corner exploration rights has moved to new heights in Western Canada, with operators paying record amounts in the first quarter for land in Alberta, British Columbia and Saskatchewan.
The three provinces collected a combined C$478 million, beating the previous high for the period of C$464 million in 2001 and topping last year’s mark by 56 percent.
With their focus on northeastern British Columbia and the Foothills and northern regions of Alberta, companies sent average prices sky-rocketing.
On a per-hectare basis, British Columbia climbed to C$730 after being mired under C$500 for the three previous years; Alberta raked in an average C$512, up 47 percent from a year earlier, Foothills parcels sold for an average C$1,045 per hectare in the latest sale; and Saskatchewan bounced to C$294 per hectare from C$173 in the January-March period of 2004.
The average for the region of C$518 per hectare was up 58 percent from the first three months of 2004.
Total payments for the quarter rose 48 percent in Alberta to C$345 million; British Columbia collected C$103 million, its best quarter since C$213 million four years ago; and Saskatchewan tallied C$29 million, its best opening quarter in eight years.
Companies acquired rights to 1.07 million hectares (2.6 million acres) compared with 983,930 hectares (2.4 million acres) in the first quarter of 2004.
—Gary Park