Statistics & Industry Activity

Shale gas prospects and the technology used to extract natural gas from shale have reshaped the exploration and development landscape in northeast British Columbia (BC).

World-class shale gas plays such as the Horn River Basin, Cordova Embayment and the Montney play trend have provided oil and gas operators the opportunity to fine tune development techniques such as horizontal drilling combined with multi-stage hydraulic fracturing. As producing companies realize success from these regions, they continue to make significant purchases of petroleum and natural gas (PNG) rights. In 2009, northeast BC’s shale gas regions garnered 90 per cent of the province’s land sale bonus total of $893 million. An almost identical scenario unfolded in 2010 with land sale bonuses directed toward shale gas activity reaching 94 per cent of the $844 million total. Land sale bonus totals dropped in 2011 with only $223 million directed toward the exploration and development of BC’s shale gas regions. The Montney play trend accounted for 89 per cent of the 2011 bonus total while the Horn River Basin saw only a one-per cent allocation. There were no PNG rights sold within the Cordova Embayment and Liard Basin in 2011.

Publications