Introduction

Petroleum and natural gas (PNG) rights owned by the Province of Alberta can be acquired through a competitive bid auction held about every two weeks. PNG leases and licences are issued to the successful bidders. Yearly, the province holds an average of 24 land auctions (sales). As of March 2022, there were 67 thousand active PNG agreements in Alberta.

After a PNG Tenure mineral agreement is acquired a number of activities follow, including drilling well(s), producing oil and/or natural gas, and proving productivity to continue an agreement. If the leased mineral rights are not developed, or, are no longer productive, the agreement is cancelled and the mineral rights return to the Crown.

Tenure sales

See the Public offering of Crown petroleum and natural gas rights by calendar year (bonuses, hectares, and average price per hectare – each file includes data for Plains, Northern, Foothills and grand totals).

The best measure of the land sale is the average price paid per hectare. The top sale by average price per hectare was held June 1, 2011. A total of $841.6 million was collected at an average price of $3,110.85 per hectare. This was also the year for the highest annual bonus amount for petroleum and natural gas rights at $3.536 billion.

The highest price per hectare was $130,060.00 per hectare, for a parcel sold in the July 5, 1978 sale. The lowest price per hectare a parcel sold for at that time was $1.25 for licences and $2.50 for leases. Today the minimum bid, or lowest price per hectare, accepted for both licences and leases is $35.00/ha. This was changed on October 23, 2020.

The most money paid for one parcel of petroleum and natural gas rights was $123.6 million on August 24, 2011.

Leases and licences calendar year summary

Table 1. Summary of annual public offering of Crown petroleum and natural gas rights by calendar year – leases and licences

Year Parcels sold Total bonus Total hectares Average $/hectare
2021 839 $108,194,157.98 428,965.700 $252.22
2020 392 $29,416,405.64 219,688.914 $133.90
2019 1,673 $119,270,187.88 820,433.764 $145.37
2018 2,352 $405,026,965.34 1,360,548.254 $297.69

Additional years

  • 2010-2017

    Year Parcels sold Total bonus Total hectares Average $/hectare
    2017-2018 2,493 $504,605,365.53 1,253,980.702 $402.40
    2016-2017 1,795 $136,783,392.53 936,775.962 $146.02
    2015-2016 2,192 $275,826,755.48 1,553,920.362 $177.50
    2014-2015 2,849 $489,376,151.05 1,058,477.6220 $462.34
    2013-2014 3,321 $679,551,589.23 2,144,317.3580 $316.91
    2012-2013 5,149 $1,110,114,528.08 3,083,175.6180 $360.06
    2011-2012 6,351 $3,536,327,739.48 4,109,573.5460 $860.51
    2010-2011 6,392 $2,387,812,738.41 3,853,300.4712 $619.68
  • 2000s

    Year Parcels sold Total bonus Total hectares Average $/hectare
    2009-2010 4,564 $731,762,723.29 1,740,609.0232 $420.41
    2008-2009 6,139 $937,598,856.47 2,022,576.1877 $463.57
    2007-2006 6,561 $710,685,624.99 1,871,920.6340 $379.66
    2006-2007 8,473 $1,471,853,475.66 2,692,912.3020 $546.57
    2005-2006 8,796 $1,827,239,438.48 2,888,212.1560 $632.65
    2004-2005 8,932 $1,022,734,935.02 2,817,180.3040 $363.03
    2003-2004 8,846 $886,263,321.33 3,078,828.4000 $287.86
    2002-2003 7,609 $476,528,408.16 2,607,513.9800 $182.75
    2001-2002 8,684 $1,003,273,846.29 3,674,155.6100 $273.06
    2000-2001 8.730 $1,002,534,826.51 3,644,271.9766 $275.10
  • 1990s

    Year Parcels sold Total bonus Total hectares Average $/hectare
    1999-2000 6,688 $528,976,757.30 2,796,398.8240 $189.16
    1998-1999 6,965 $581,963,629.92 2,838,182.1450 $205.05
    1997-1998 9,814 $969,977,927.19 4,783,512.5055 $202.78
    1996-1997 9,020 $725,684,303.00 4,566,957.0998 $158.90
    1995-1996 8,788 $634,901,750.94 4,269,813.8751 $148.70
    1994-1995 10,699 $999,293,400.40 4,701,854.8169 $212.53
    1993-1994 7,233 $503,712,209.64 2,969,154.8620 $169.65
    1992-1993 4,431 $148,620,997.29 1,505,808.7588 $98.70
    1991-1992 5,614 $307,079,345.36 2,217,420.9000 $138.48
    1990-1991 6,045 $434,975,474.88 2,410,126.0500 $180.48
  • 1980s

    Year Parcels sold Total bonus Total hectares Average $/hectare
    1989-1990 5,566 $359,877,016.73 2,263,663.6300 $158.98
    1988-1989 7,068 $521,015,291.46 2,630,286.6740 $198.08
    1987-1988 5,819 $687,399,999.17 2,274,942.3000 $302.16
    1986-1987 4,628 $250,890,631.99 1,894,147.2000 $132.46
    1985-1986 5,328 $796,176,437.00 2,740,801.8900 $290.40
    1984-1985 4,350 $624,164,170.38 1,870,962.8900 $333.61
    1983-1984 2,960 $429,476,531.00 1,214,040.9100 $353.76
    1982-1983 2,074 $333,961,180.51 1,111,784.1700 $300.38
    1981-1982 2,728 $588,497,125.31 1,580,471.4000 $372.36
    1980-1981 3,454 $1,004,882,651.10 2,473,678.2900 $406.23
  • 1970s

    Year Parcels sold Total bonus Total hectares Average $/hectare
    1979-1980 2,987 $996,743,710.59 2,027,078.3100 $491.71
    1978-1979 2,562 $603,241,521.45 1,577,365.6800 $382.44
    1977-1978 2,425 $579,735,477.78 2,067,951.3500 $280.34

Table 2. Summary of Annual Public Offering of Crown Petroleum and Natural Gas Rights by fiscal year (April to March) – leases and licences

Year Sales held Parcels sold Total bonus Total hectares Avg. $/HA
2021/2022 23 847 $162,535,706.21 495,004.820 $328.35
2020/2021 7 329 $20,684,799.07 152,504.90 $135.63
2019/2020 24 1,501 $106,277,200.07 774,896,362 $137.15
2018/2019 24 2,084 $353,608,318.88 1,301,265.722 $271.74

Additional years

  • 2010-2018

    Year Sales held Parcels sold Total bonus Total hectares Avg. $/HA
    2017-2018 24 2,625 $510,802,517.85 1,229,510.708 $415.45
    2016-2017 23 1,959 $189,738,993.82 977,222.886 $194.16
    2015-2016 23 2,027 $203,832,251.10 1,284,906.5860 $158.64
    2014-2015 24 2,732 $456,110,205.05 1,276,705.7860 $357.26
    2013-2014 24 3,044 $586,517,259.28 1,789,530.3100 $327.75
    2012-2013 24 4,718 $1,027,868,118.36 3,068,907.3610 $327.75
    2011-2012 24 6,259 $3,212,572,721.95 3,880,861.8490 $827.80
    2010-2011 23 6,442 $2,566,089,484.75 3,840,956.7848 $668.09
  • 2000s

    Year Sales held Parcels sold Total bonus Total hectares Avg. $/HA
    2009-2010 24 4,857 $1,131,995.261.66 2,210,392.6476 $512.12
    2008-2009 24 5,946 $865,658,273.60 2,056,858.6197 $420.86
    2007-2008 24 6,005 $583,455,417.58 1,664,538.7580 $350.52
    2006-2007 24 7,853 $1,054,884,821.84 2,428,313.0840 $434.41
    2005-2006 24 9,196 $2,165,464,637.16 3,121,095.2020 $693.82
    2004-2005 23 8,954 $1,126,061,167.65 2,825,319.0540 $398.56
    2003-2004 24 8,792 $942,546,274.58 3,031,701.6080 $310.90
    2002-2003 24 7,830 $547,803,419.53 2,608,883.6060 $209.98
    2001-2002 24 8,319 $877,983,140.26 3,496,409.9900 $251.11
    2000-2001 25 8,828 $1,019,916,628.43 3,635,503,1480 $280.54
  • 1990s

    Year Sales held Parcels sold Total bonus Total hectares Avg. $/HA
    1999-2000 27 7,491 $652,921,595.93 3,127,923.5136 $208.74
    1998-1999 24 5,058 $444,658,875.35 2,430,088.9700 $182.98
    1997-1998 24 9,215 $918,580,041.48 4,480,851.9517 $205.00
    1996-1997 24 9,896 $853,660,730.31 4,875,627,5686 $175.09
    1995-1996 24 7,396 $546,423,493.98 3,578,098.7541 $152.71
    1994-1995 29 11,175 $970,804,456.97 4,980,592.0379 $194.92
    1993-1994 31 8,833 $711,711,096.92 3,868,342.6700 $183.98
    1992-1993 23 4,561 $166,963,289.23 1,561,913.7468 $106.91
    1991-1992 25 5,336 $254,751,116.41 2,045,156.1960 $124.56
    1990-1991 25 5,962 $414,159,426.82 2,382,221.1000 $173.85
  • 1980s

    Year Sales held Parcels sold Total bonus Total hectares Avg. $/HA
    1989-1990 25 5,758 $387,654,013.98 2,327,443.2900 $166.56
    1988-1989 25 6,662 $447,763,598.76 2,520,016.4140 $177.68
    1987-1988 25 6,495 $759,752,331.10 2,516,326.5800 $301.93
    1986-1987 25 4,386 $240,457,759.93 1,716,070.1400 $140.12
    1985-1986 25 5,386 $721,632,122.75 2,696.598.0100 $267.61
    1984-1985 25 4,656 $662.065.187.19 2,097,880.8800 $315.59
    1983-1984 25 3,447 $484,745,148.24 1,353,513.1800 $358.14
    1982-1983 24 2,050 $335,830,362.64 1,106,552.3300 $303.49
    1981-1982 24 2,562 $555,218,858.75 1,479,181.3000 $375.36
    1980-1981 25 3,235 $752,251,457.99 2,077,209.4100 $362.15
  • 1970s

    Year Sales held Parcels sold Total bonus Total hectares Avg. $/HA
    1979-1980 25 3,091 $1,056,076.7617 2,179,912.1100 $484.46
    1978-1979 29 2,657 $671,071,770.27 1,696,906.1200 $395.47
    1977-1978 40 2,565 $734,577,690.00 2,000,901.0000 $367.12

Revenue and activity by fiscal year (April to March)

Table 3. Petroleum and Natural Gas (PNG) Agreements by Year

  2021-2022 2020-2021 2019-2020 2018-2019 2017-2018
Total Hectares in Active PNG Agreements 24,142,030 25,150,901 26,604,510 27,648,827 27,638,209
Number of active PNG Agreements 67,001 69,244 73,065 75,826 77,191

Table 4. Annual Revenue (rounded to the nearest dollar)

  2021-2022
($)
2020-2021
($)
2019-2020
($)
2018-2019
($)
2017-2018
($)
Public Offering (bonus) 162,535,706 20,684,799 106,277,200 353,608,319 510,802,518
Annual Rent 82,231,532 88,321,507 94,891,545 99,202,088 99,825,874
Offset Compensation 2,470,491 460,503 1,079,188 211,770 353,499

Table 5. Annual Activity

  2021-2022 2020-2021 2019-2020 2018-2019 2017-2018
PNG Agreements Issued 855 332 1,523 2,117 2,670
PNG Agreements Surrendered 1,489 3,114 1,556 707 594
PNG Agreements Renewed 1,391 578 1,402 1,335 1,578
PNG Agreements Transferred 5,976 7,285 6,498 10,594 17,964
PNG Agreements Cancelled 1,987 1,160 2,596 2,491 3,668
Non-Productivity Notices Issued 502 478 732 661 810
Trespass Determined 7 14 14 157 71

Contact

Connect with the Petroleum and Natural Gas Tenure division:

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-644-2300
Toll free: 310-0000 before the phone number (in Alberta)

Email:
Energy – Bidding – [email protected]
Energy – Crown land data – [email protected]
Energy – Gas royalty – [email protected]
Energy – Oil royalty – [email protected]
Energy – PNG continuations – [email protected]
Energy – Postings – [email protected]
Energy – Rentals – [email protected]
Energy – Transfers – [email protected]
Energy – Unit agreements – [email protected]
Energy – Well administration – [email protected]
Environment and Parks – GLIMPS – [email protected]

Address:
Alberta Energy
Petroleum and Natural Gas Tenure
North Petroleum Plaza
9945 108 Street*
Edmonton, Alberta  T5K 2G6

*Couriers report to the 2nd floor.

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