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Canada nudges land sales earnings up 10%
Gary Park Petroleum News Calgary Correspondent
Sales of petroleum and natural gas rights across Canada slowed in the second quarter in two key markets — British Columbia and Saskatchewan — but governments still raked in a healthy C$697 million for the first six months, up 10 percent from a year ago.
Evidence of intense competition for exploration prospects was reflected in the fact that 466 companies secured rights.
As usual, the dominant province was Alberta, which claimed C$540 million of the total revenues, including a robust C$334 million in the second quarter.
Average land values were the highest in almost 25 years in Alberta, hitting C$388 per hectare (one hectare equals 2.471 acres) in the April-June period, surpassing British Columbia’s C$354.
Of the 5.02 million acres in rights sold in all jurisdictions to the end of June, Alberta accounted for 3.6 million acres, with coalbed methane prospects making a significant impact.
For the six months, British Columbia set the pace at an average C$385 per hectare, compared with Alberta’s C$369 and Saskatchewan’s C$151.
In addition to the rights, total cash sales and work commitments reached 6.6 million acres, down from 6.89 million acres for the first half of 2003.
Contributing to that tally, the Northwest Territories fetched C$125 million from the sale of 720,000 acres, while Nova Scotia granted rights to 342,000 acres, but did not release the work commitment dollars.
There was no sign of any flagging in Alberta’s first sale of the second half when 405,000 acres changed hands for almost C$49 million. Contact, EnCana among major players Leading the successful bidders was broker Scott Land & Leasing, which spent C$156 million acquiring 1.04 million acres for clients who kept their identities confidential.
The busiest companies were Contact Exploration, which accumulated 370,000 acres, the bulk from an onshore auction in New Brunswick, followed by EnCana, which added 342,000 acres to its portfolio, including a major work commitment in Saskatchewan.
Next in line were Paramount Resources, 335,000 acres; broker Standard Land, with a C$53 million investment in 269,000 acres for anonymous clients; and Canadian Natural Resources, 90,000 acres.
Other major players in the hunt included Shell Canada, with an acquisition of 66,640 acres in British Columbia; Devon Canada, 38,320 acres; and Burlington Resources Canada, 34,650 acres.
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