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Alberta picks up where it left off
Alberta government land sales haven’t missed a step as they start a new year, with oil sands parcels accounting for more than 70 percent of the initial bidding round in 2007.
Having dominated the bi-monthly auctions in 2006, the oil sands generated C$133.6 million for rights to 495,000 acres, with conventional sales contributing another C$54.2 million from 293,000 acres.
However, the combined total fell C$25 million short of the initial auction last year when 580,000 acres changed hands.
The average per-acre price took a 35 percent drop year-over-year, another indication of the downturn in drilling intentions and wilting oil and gas prices.
C$24.8 million bid tops sale Topping the oil sands lease sale was a successful bid of C$24.8 million by broker Scott Land & Lease on behalf of an unidentified client, who paid an average C$1,632 per acre compared with the sale’s average C$270 for oil sands rights.
Two nearby parcels were acquired by Windfall Resources and Canadian Coastal Resources for C$17.6 million and C$15.5 million at respective per-acre prices of C$1,157 and $2,047.
Major oil sands operators with rights in the area are UTS Energy, a partner with Petro-Canada and Teck Cominco in the Fort Hills project, and Shell Canada.
Petroland Services (1986) led the per acre average at a startling C$11,567 for a section in the Cadoette area of the Peace River region in northwestern Alberta close to where Shell has wells licensed.
—Gary Park
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