British Columbia government coffers got a boost this month after a dismal February auction where not a single lease or drilling licence sold.
March’s Crown petroleum and natural gas rights public tender netted $1.9 million, including three leases and seven drilling licences.
The sale is considered an indicator of future oil and gas exploration, and makes up the majority of provincial petroleum revenues.
February's sale was the first time in history that not one parcel sold, as exploration contracts with a downturn in oil and gas prices.
While government officials are likely breathing sighs of relief after the March 23 sale, oil and gas revenues continue to be among the lowest in history.
B.C. recorded its worst ever income from land sales last year, bringing in $18 million. By comparison, November 2014 alone brought in more than $200 million.
In a statement issued after the February tender, a ministry of natural gas development spokesperson said the parcels up for sale have "a reduced geological potential in comparison to previous years."
The shortfall in petroleum revenues will likely begin to be felt in the next three years, as government spends revenues set aside from earlier windfalls.
The average price per hectare this month was $314, well below the 2008 high of $9,537. However, the price recovered from January, when leases went for $76 per hectare.
Investment down across the board
The federal government budget tabled Tuesday estimates oil and gas investment in Canada fell 30-40 per cent in 2015.
According to the B.C. Oil and Gas Commission, 109 wells have been drilled in the province this year, compared to 213 by this time in 2014.
The next sale will be held April 20.
