At the October 22 British Columbia Land Sale, Parcel 018, which is directly adjacent to the northwest corner of Canadian Spirit Resources Inc.'s (SPI) west block, sold for $61 million. This parcel is 3,738 hectares which equates to a price of $16,315/hectare or $6,605/acre. This sale further validates the value of the Montney in the Farrell Creek area.
Parcel 018 is not only contiguous to SPI's land, but is also very similar in topography and geology. Parcel 019, which is to the west of Parcel 018, is west of the disturbed belt and has more geologic folding leading to more expensive development and consequently sold for a lower price. Parcel 018 and its higher price is a much better comparison to SPI's properties.
The October '09 land sale is a great follow through to the November '08 land sale which generated land prices over $6,000/acre for lands adjacent to SPI and demonstrates continued interest in the Montney shales in northeast British Columbia.
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