AXcess News: Gas Boom Spurs Record BC and Alberta Land Sales

Record natural gas prices have created a boom in land sales in British Columbia and Alberta with the area bordering the two provinces said to be the largest gas find in North America and leaping into the frenzy is Park Place Energy Corp. (OTCBB: PRPL) which snapped up 1280 acres Tuesday.

Park Place is one of the few junior exploration companies that have made the leap from exploring for gas to hitting pay dirt. The Calgary, Alberta-based company announced on June 30 that it recorded $260,000 CDN in revenue for the month of May from its Eight Mile property in NE BC, near the area where it bid on land in the recent auction. Representing Park Place was AJM Petroleum consultants who are considered the leaders in shale gas geological research. The market-savvy consulting group said in their quarterly newsletter, AJM F.Y.I., released just days ago that shrinking conventional gas properties combined with high prices are fueling enterprising companies to explore for shale gas.

Larry Boyd, AJM Senior Geological Specialist, explained that “The recent announcement of shale gas tests in Quebec, the extraordinary land sale prices in British Columbia, Stealth’s announcement of the first commercial shale gas play in Eastern Alberta and natural gas prices back above $10, are providing an incentive for companies to take a closer look at shale opportunities.”

Apache Corp. announced in April that its flow test results on three shale gas wells in the Horn River area were 8.8 MMcf, 6.3MMcf, and 5.1MMcf respectfully, and estimates for the area range from 50 trillion to 100 trillion cubic feet of gas making it the largest gas resource in North America.

Land sales in BC were reported to have generated record revenue for the Province last year of $1.2 billion, but as of June, sales already totaled $693.9 million, according to an announcement by Minister of Energy, Mines and Petroleum Resources Richard Neufeld. BC is well on its way to surpassing last year’s record land sales. While in Alberta, the twice-monthly auction of leases and exploration licenses raked in $173 million. It was the biggest land buying spree since 2005.

Park Place Energy Corp. President David Johnson called Tuesday’s land auction results “a solid foundation” of the Company’s core business model, referring to PRPL’s existing properties being within the shale gas play and their property-savvy knowledge of the area because of it.

“The land acquired this week in Alberta builds on our solid foundation in one of the hottest resource plays in North America,” said Johnson. “This exciting acquisition fits into Park Place’s core business model, using our experience and expertise in the area to discover and develop blue-sky potential properties.”

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SOURCE: AXcess News