Monday, January 17, 2011

Alberta Land Sales: Record and Price/Acre -- Not a Bakken Story

For those wanting to compare the value of mineral acres in the Bakken with those in Alberta, Oil and Gas Journal reports that Alberta land sales set a record in 2010, surpassing the previous record set in 2005. (All figures in Canadian dollars except for North Dakota figures.)
In 2010, Alberta's petroleum and natural gas land sales netted the province $2.38 billion, exceeding the previous sales record of $1.83 billion set in 2005. Land sales revenue was $732 million in 2009.
In addition, the July 7 sale netted an average price of $2,185/hectare, exceeding the previous high of $2,085/ha.
With a conversion factor of 2.47 acres/hectare, this works out to about $885/acre. Currently one US dollar = 0.9875 Canadian dollar, so for my purposes, parity.

My figures show North Dakota collected $230 million from land sales in 2010.

[I made a mistake when I posted this the first time regarding conversion of hectares to acres. Thank you to a reader for catching this for me.]
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2 comments:

  1. AnonymousJanuary 18, 2011 at 6:03 AM

    Check your calculations. There are 2.47 acres per Hectare which works out to a price of $885 per acre.

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  2. Bruce OksolJanuary 18, 2011 at 6:26 AM

    You are correct. I had the wrong conversion factor. Thank you.

    There are 2.47 acres in a hectare. The price makes a lot more sense. Thank you.

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