Alberta oil land sales remain strong

Areas such as the Duvernay region with significant oil work potential have been dominating land sales recently

By
Western Investor
November 20, 2017





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At a land sale in mid-September, the Alberta government brought in $34.8 million with interest in the Duvernay region dominating the action, according to Oilweek.

Industry picked up 96,240 hectares (237,400 acres) at an average price of $361.57 per hectare. Year-to-date, the province has collected $309.43 million on 902,119 hectares at an average price of $343 per hectare.

“While a few areas and specific plays continued to dominate the land sale picture this week, it’s interesting to note that we’re not seeing nearly as many parcels posted that are attracting very small bids (less than $10 per hectare), or no bids at all,” said Brad Hayes, president of Petrel Robertson Consulting Ltd. “Most parcels appear to be posted for a purpose, and operators are paying substantial dollars pretty much across the board.”

Highlights of the sale included a group of continuous leases, which combined for total bids of nearly $15 million.


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