Driven largely by continued interest in Saskatchewan's southeast region, the December public offering of Crown petroleum and natural gas rights on Dec. 5 posted revenue of $9.6 million.
With a sixth and final sale still remaining for the 2017-18 fiscal year, the total is currently $61 million, already above the previous fiscal year end total of $50 million.
“Saskatchewan's favourable policy and operating environment provides the industry with the kind of stability it seeks,” Energy and Resources Minister Nancy Heppner said in a release. “Drilling activity, oil and gas related revenue, and industry investments in new exploration and development are all trending upward in Saskatchewan for 2017. We will do our part to help sustain this growth.”
Southeast Saskatchewan remains a focus of significant industry attention with 80 leases awarded on Dec. 5, consisting of 6,574 hectares and fetching $5,084,478. One lease south of Wilkie received a bonus bid of $1,642,016 for 259 hectares. This lease was purchased by STOMP Energy Ltd. and is prospective for oil in the Mannville Group.
In southeast Saskatchewan there were a total of 83 leases sold, accounting for 8,420 hectares and totalling $5,084,478. That’s down from $17,286,002 in the last offering, when Crescent Point Energy Corp made a big move into what it’s calling its Lodgepole play (a formation referred to in Saskatchewan as the Souris Valley Beds).
Spartan Energy Ltd. bid $587,341 for a 129.5 hectare parcel south of Alameda. This parcel is prospective for oil in the Frobisher and Midale Beds of the Madison Group.
The highest dollar per hectare in this area was received from Synergy Land Services Ltd., who paid $12,510/hectare for a 32.38 hectare parcel located within the Steelman Midale and Frobisher Beds Pools, five kilometres south of Lampman.
In southwest Saskatchewan, four licences were posted but only one sold. It was for 1,036 hectares, bringing in $68,013, at $65.65 per hectare. All three posted leases sold. They totalled 2,849 hectares, for $335,037.
Top purchaser of acreage in this area was Scott Land & Lease Ltd., who spent $181,081 to acquire a 971 hectare lease parcel situated adjacent to the Leitchville and Leon Lake Shaunavon Oil Pools, 15 kilometres north of Eastend. This is also the highest dollar per hectare in this area at $186/hectare.
The top price paid for a single licence in this area was $68,013, paid by City of Medicine Hat for a 1,036 hectare parcel situated adjacent to the Instow Upper Shaunavon Oil Pool, 15 kilometres northeast of the town of Shaunavon.
The Kindersley area saw 14 leases posted and 10 sold. A bonus of $949,462 was paid for 2,072 hectares, an average of $458 per hectare.
Top purchaser of acreage in this area was Marquee Land Services, who spent $525,057.75 to acquire 3 lease parcels.
The top price paid for a single lease in this area was $233,359, paid by Marquee Land Services for each of two 259 hectare parcels situated in close proximity to the Whiteside Viking Sand Oil Pool, 35 kilometres west of Kindersley. These two parcels are also the highest dollar per hectare in this area at $901/hectare. A third parcel, consisting of 64.75 hectares and located 15 kilometres west of Kindersley, was also acquired by Marquee Land Services for $901/hectare.
In the Lloydminster area, 16 leases were posted and 12 sold, for a total of 1,214 hectares. It sold for $3,114,637, at an average of $2,564/hectare. The top purchaser of acreage in this area was Stomp Energy Ltd., who spent $1,727,495 to acquire two lease parcels. The highest dollar per hectare in this area was received from Windfall Resources Ltd, who paid $13,667/hectare for a 16 hectare parcel located adjacent to the Dee Valley Mannville Sands Oil Pools, 10 kilometres northeast of Maidstone.
The next public offering of petroleum and natural gas rights will be held on Feb. 6, 2018.
