British Columbia eyes C$2 billion windfall

Gary Park

Petroleum News Calgary correspondent

British Columbia is counting on passing the C$2 billion mark in oil and natural gas revenues this fiscal year, with gas royalties leading the way.

In its latest forecast for the year, which ends March 31, 2004, the province is forecasting C$2.01 billion in hydrocarbon revenue — C$1.3 billion from gas royalties, C$91 million in oil royalties and C$696 million in land sales.

Easily the biggest lift comes from two fall land sales, when EnCana forked over C$369 million to corner majority stakes in 39 parcels totaling 350,000 net acres in the Cutbank Ridge play of northeastern British Columbia. EnCana has estimated the area, which crosses into Alberta, could produce 4 trillion cubic feet.

Meanwhile, the Alberta government has budgeted for C$6.7 billion in resource revenue for the same fiscal year, C$1.9 billion above its original forecast, assuming gas prices average C$5.15 per thousand cubic feet and oil prices yield US$27.50 per barrel.