The October sale of petroleum and natural gas rights in Saskatchewan generated $9.8 million in revenue for the provincial government’s coffers. Land sale revenues have
reached $45.5 million through the first five sales of the year.
The average sale price was $220.11 per hectare for the 44,766.63 hectares sold. Four licences encompassing 31,176.99 hectares generated $1.9 million in bids, or $61.36 per hectare; and 82 leases covering 13,589.64 hectares fetched $7.9 million, or $584.29 per hectare.
“The long-term viability of Saskatchewan’s oil patch relies on new discoveries,” Economy Minister Bill Boyd said. “The province is cautiously optimistic that exploration activities on the lands acquired will prove successful.”
The October sale saw the Estevan-Weyburn area receive the most bids with sales of $6.7 million. The average per hectare price was $180.78 for the 37,098.44 hectares sold. Four licenses covering 31,176.99 hectares attracted $1.9 million in bids, or $61.36 per hectare. Forty-five leases covering 5,921.45 hectares generated $4.7 million, or $809.53 per hectare.
The southeast also led the province in a number of different categories. The top price paid for a single lease was $832,355.58, by Triland Energy Inc., for a 259-hectare (640-acre) parcel situated partially within the Willmar West Frobisher Beds Oil Pool, which is located two kilometres west of Willmar.
Top price paid for a single licence was $552,962.88, paid by Deep Treasure Corp. for a 9,064.96 hectare (22,400.00 acre) block located 10 kilometres west of the Freda Lake Ratcliffe Beds Oil Pool, which is 65 kilometres southwest of Weyburn.
The highest dollar per hectare in the public offering was received from Scott Land and Lease Ltd., who paid $10,045.54 per hectare ($4,065.30/acre) for a 64.75-hectare (160-acre) parcel located within the Stoughton Frobisher-Alida Beds Oil Pool, adjacent to the town of Stoughton.
Scott Land and Lease was the top purchaser of land in the sale, as they spent $1.28 million to acquire six lease parcels.
“It is encouraging that under-explored areas of the province continue to attract the attention of industry,” Boyd said. “Saskatchewan’s investment climate is proving very attractive even at a time of volatile prices.”
Four exploration licences and one lease that sold for $2 million southwest of Weyburn are located in an area that is prospective for Mississippian carbonates; the transitional Mississippian-Devonian Bakken Formation with the underlying Torquay Formation; the deeper Devonian Birdbear and Winnipegosis Formations; and the Ordovician Red River Formation.
As for the rest of the province, the Lloydminster area generated $1.8 million, followed by the Kindersley-Kerrobert region at $1 million and the Swift Current area at $357,844.
Gas-prone areas of the province attracted bonus bids of $386,879.59 for 501.80 hectares, an average of $770.98 per hectare. Parcels offering only deeper rights generated $521,108.11, or 5.29 per cent of the offering, for an average price of $481.02 per hectare.
The next sale of Crown petroleum and natural gas rights will be held on December 1.