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June oil and gas public offering raises $2.9 million in revenue

Southeast region led the way with more than $2.6 million in revenues
Nikkel Pump Jack at Sunset
Pump jacks at work at sunset.

REGINA - Saskatchewan's public offering of Crown petroleum and natural gas rights, held on June 7, raised more than $2.9 million for the province.

The revenue generated from the June and April sales totals $22.2 million, exceeding the $15 million raised during the entirety of the 2021-22 fiscal year. The previous sale in April fetched more than $19 million.

Of the 70 parcels posted for the June oil and gas public offering, 53 received acceptable bids, covering 6,331.925 hectares. The average bonus bid was $463.43 per hectare with the highest acceptable bid of $6,180 per hectare.

Sixty-nine of the parcels posted were leases. Fifty-two of them received acceptable offers. They generated more than $2.3 million, or $424.21 per hectare.

One available licence for 836.778 hectares was sold. Silver Hawk Resources Ltd. bid $602,204.02, or $719.67 per hectare, to pick up the licence. It is located 22 kilometres north of Stoughton.

The highest bonus bid in the June offering was $641,751.62 for a 387.681-hectare lease 21 kilometres northeast of Stoughton, within the Viewfield Bakken Oil Pool. This lease was awarded to Crescent Point Energy Corp.

The southeast region attracted the most interest in the sale, bringing in over $2.6 million for 37 lease parcels and the one licence. The 37 leases encompassed 3,812.568 hectares and drew more than $2 million in bids, or $536.03 per hectare.

The highest dollars per hectare received on a lease in the southeast was $6,180. Ferret Energy Ltd. bid $199,187.58 for a 32.231-hectare lease in the Browning South Frobisher Beds Oil Pool, located 14 kilometres northeast of Lampman.

The Lloydminster area generated $192,939, or $225.76 per hectare for the 854.617 hectares sold. Of the nine leases available in the Lloydminster region, eight were purchased.

The highest bonus bid received on a lease in this area was $131,466.72, an average of $622.31/hectare, for a 211.245-hectare lease. It was awarded to Gear Energy Ltd., and is located approximately 14 kilometres northeast of Maidstone, within the Rush Lake Mannville Oil Pool.

The highest bid on a per hectare basis was $788.13 for a 16.170-hectare lease located two kilometres east of Lloydminster. This lease was awarded to Avalon Oil & Gas Ltd. and is adjacent to the Lloydminster Colony Gas Pool.

The Kindersley-Kerrobert area fetched $95,597.75. Of the 10 leases posted, seven were sold, encompassing 827.962 hectares, or $115.46 per hectare.

The highest bonus bid and dollars per hectare received on a lease in the Kindersley-Kerrobert area was $65,851.49, or $253.59 per hectare. It went to Teine Energy Ltd. and is located seven kilometres northwest of Marengo, within the Milton Viking Gas Pool.

There were no parcels posted in the Swift Current-Shaunavon area.

The next sale is scheduled for Aug. 9 and will feature 93 leases covering 8,702 hectares.

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