April's oil and gas public offering generates $11.1 million
The Government of Saskatchewan's Crown petroleum and natural gas public offering, held on April 4, raised $11,113,459 for the province.
Of the 147 parcels posted for the sale, 105 received acceptable bids. These bids covered 22,424 hectares, and the average sale price was $495.59 per hectare.
The Estevan area saw the most interest, bringing in $6,439,086 for 50 leases totalling 4,346 hectares.
The highest bonus bid in this area, and the entire province, was $2,615,989 for a 258.692-hectare lease located 19 kilometres northeast of Midale. It was awarded to Buffalo Hill Resources Ltd. The $10,112.37 per hectare bid was the highest per hectare amount received on a parcel in the sale.
Another lease 15 kilometres northeast of Midale received a bid of $1,255,202, or $6,475.02 per hectare. The 193.853-hectare lease was awarded to Midale Petroleums Ltd.
These leases are prospective for oil in the Frobisher Beds and the Bakken Formation.
Fifty of the 53 leases posted in the southeast received bids.
The Lloydminster area also saw considerable interest, bringing in $3,294,125 for 36 leases and two exploration licences totalling 9,617 hectares, an average of $342.53 per hectare. A total of 63 leases and three licences were posted.
The highest bonus bid received on a lease in this area was $607,585, or $1,376.79 per hectare. This 441.306-hectare lease is located 11 kilometres northeast of Maidstone, near the Rush Lake Mannville Sands Oil Pool and the Dee Valley East Mannville Sands Oil Pool. The successful bidder was Scout Energy.
An exploration licence, totalling 747.744 hectares, received a bonus bid of $1,165,650 or $1,558.89 per hectare. This licence is located nine kilometres east of Maidstone and was awarded to Millennium Land Ltd.
In the Kindersley-Kerrobert area, the total bonus received in the area was $1,180,889, an average of $181.24/hectare. Three leases encompassing 758.279 hectares were sold for $375,235.46, while four licences for 5,757.292 were sold for $805,653.90.
The highest bonus bid hectare received on a lease in this area was $252,175 or $1,001.15 per hectare. This 251.886-hectare lease was awarded to Mammoth Land Services Ltd. and is located 18 kilometres northwest of Marengo, within the Hoosier Viking Gas Pool and adjacent to the Loverna South Bakken Sand Gas pool. This was also the highest dollars per hectare bid received on a parcel in this area.
The highest bonus bid received for an exploration licence in the region for this offering was $272,632 or $235.15 per hectare. This 1,159.397-hectare licence is located 16 kilometres north of Marengo. The successful bidder was Mammoth Land Services Ltd.
The highest dollars per hectare received on an exploration licence in this area was $352.51/hectare. This licence was awarded to Mammoth Land Services Ltd and is located 22 kilometres north of Marengo.
As for the Swift Current area, the total bonus received in this area was $199,358.88, an average of $1902.46 per hectare. All 10 leases posted were sold.
The highest bonus bid in this area was $81,803, or $627.87 per hectare for a 130.287-hectare lease located eight kilometres northwest of Swift Current, adjacent to the Java East Success Pool. Millennium Land (111) Ltd. was awarded this lease.
A parcel 12 kilometres northwest of Swift Current received the highest dollar per hectare bid of $1,521.64 per hectare. Millennium Land (555) Ltd. bid $24,712.96 for the 16.241-hectare lease. This parcel is located within the Java East Success Pool.
The next scheduled date for a public offering in Saskatchewan is June 6.