Despite significant doom and gloom lately about the oil sector, there was some positive news reported about land sales in Saskatchewan.
The provincial government is reporting $17.5 million in revenue was raised for the province from their February sale of petroleum and natural gas rights, their first one of 2015.
That brings total land sale revenues for fiscal year 2014-15 to $164.7 million. The next sale of Crown petroleum and natural gas rights is set for April 6, after the 2015 budget is delivered.
According to the news release issued Thursday, among the highlights was the Weyburn-Estevan area receiving the most bids with sales of $8.3 million. The Lloydminster area was next at $5.3 million, with the Swift Current area at $3.2 million and Kindersley-Kerrobert at $694,039.
The highest price paid for a single parcel was $3.5 million, from Windfall Resources Ltd. acquisition of a 1,036-hectare lease east of St. Walburg.
The highest price on a per-hectare basis was $8,586, after STOMP Energy Ltd. bid $1.1 million for a 126.6-hectare lease southeast of Estevan.
The $164.7 million total exceeds the government’s expectations. The 2014 budget had forecast $99 million in land sale revenue for the fiscal year, but the final numbers have bested that by about $66 million.
“Robust sales in April and August of last year accounted for the increase in land sale revenues over the initial forecast,” said Economy Minister Bill Boyd in a statement.
“Saskatchewan remains one of the best places for oil and gas companies to invest. The sector will continue to play a part in our diversified economy in 2015.”
