Alberta sets petroleum land sale record

The government of Alberta reported that its petroleum and natural gas land sale on June 1 netted more than $841 million and is an all-time record that nearly doubled the previous $474 million record set in December 2005.

By OGJ editors
HOUSTON, June 2
-- The government of Alberta reported that its petroleum and natural gas land sale on June 1 netted more than $841 million and is an all-time record that nearly doubled the previous $474 million record set in December 2005.

It said the sale also set a record for average price/ha of $3,110.85, surpassing the previous high of $2,185.03 set in July 2010.

Alberta had 390 parcels available for sale. The parcel with the highest price was northeast of Rocky Mountain House, which is between Calgary and Edmonton and west of Red Deer. The parcel sold for more than $106.5 million with an average price of $13,529.70/ha, also a record high, surpassing the $96.5 million paid for a parcel on Mar. 23.

“The most interesting result in this land sale is the focus on conventional oil in the Cardium formation,” Energy Minister Ron Liepert said. “This is the result of our previous changes to the royalty structure which encourages the use and deployment of new technologies in accessing the resource.”

The province set a $2.39 billion land sale record for a calendar year in 2010, and a $2.56 billion record for a fiscal year (April 2010-March 2011).

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