British Columbia joins land sales slump in Western Canada

Gary Park, PNA Canadian correspondent

Even British Columbia has entered a tailspin, as E&P companies across Western Canada opt for caution in bidding for government exploration rights, apparently ignoring the highly-touted gas potential of northeastern British Columbia.

Although the average price paid for land in British Columbia easily outstrips the rest of Canada, the province has gone into sharp retreat, collecting a meager C$7.35 million from its latest auction on April 24, the second lowest take from any sale in the last two years. For the year to date, the British Columbia government has collected C$92.56 million on the sale of 193,686 hectares (478,598 acres) at an average price of C$477.86 per hectare.

At the same period of last year, bidders had paid C$245.42 million to secure 387,446 hectares (957,379 acres) of exploration prospects at an average price of C$633.44 per hectare. The high bid in the latest auction went to Maverick Land Consultants (87) Inc., which paid C$3.7 million or C$1,212.11 per hectare for a 3,055 hectare drilling license near Ring Border in northeastern British Columbia, about 15 miles west of the Alberta border.

The area combined gas exploration and development prospects, with Burlington Resources Inc. and Canadian Natural Resources Ltd. the dominant players in the area.

Chevron Canada Resources Ltd. also holds a license to drill an exploration well on a nearby parcel.