2017 marked a considerable year for land sales in Canada, thanks to North American oil and gas pipelines. The Montney and Duvernay plays have both proved to be very rich in natural resources, making both locations very desirable areas to acquire land.
The Montney And Duvernay Plays
Many companies with North American oil and gas pipelines have been looking to establish themselves in the Montney and Duvernay plays.
The Montney Play, which is about 1700-4000 meters deep, stretches from British Columbia to Alberta. The National Energy Board of Canada estimates that gas in the area ranges from 80 to 700 Tcf. Recently, companies have discovered that the Montney play is also very rich in liquid oil.
The Duvernay Play, discovered more recently, is located in close proximity to the Montney Play. Located in the Western Canada Sedimentary Basin, it’s been estimated that the Duvernay Play holds 443 Tcf of natural gas and 61.7 billion bbls of oil. Estimates have also indicated that there are 11.3 billion bbls located within the Duvernay Play.
Increase In Land Sales
The Duvernay Play is an emerging location, with the Montney Play having been explored for the past year or so. 2017 saw more North American oil and gas pipeline developers moving into the area hoping to buy land for exploration.
Western Canada saw $793.93 million in spending on land in 2017, which is up fourfold from the year prior. In 2016, there was a mere $217.51 million spent on land. Developers secured 1.77 million hectares of land in the areas of the two plays.
Of the nearly $800 million spent, $556.39 million in bids were located in Alberta, where the Duvernay Play is located. Specifically, many of the bids were focused on the East Shale Basin Duvernay.
British Columbia also benefited. In 2016, a record low was set for land spending in the area. 2017 was a different story, however. Bids for land in British Columbia jumped from $15.1 million to $173.25 million.
The year’s top buyer was Scott Land & Lease Ltd. The company paid $357.39 million to acquire 600,797 hectares.