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October's land sales generates $5.4 million for the province

The southeast region once again led the way with more than $4.3 million in revenue.
Nikkel Pump Jack at Sunset
Pump jacks at work at sunset.

REGINA -

DW-Land Sale  

 

Southeast sets the pace again for land sale 

 

Saskatchewan's public offering of Crown petroleum and natural gas rights, held on Oct. 4, raised $5,426,564 for the province, which more than doubled the October 2021 offering.

This brings the current total for the 2022-23 fiscal year to more than $34.1 million in revenue. 

Seventy-two of the 78 leases posted were sold. The bonus bid for the leases came out to a little more than $5 million, encompassing 5,899.508 hectares, or $860.11 per hectare. 

One licence was also available. The 4,345.505-hectare parcel sold for $352,333 or $81.08 per hectare. It was for a block of land west of Kindersley. The successful bidder was Millennium Land (333) Ltd. 

The highest bonus bid received in this offering was $608,172 for a 161.287-hectare lease 16 kilometres south of Oxbow, which was awarded to Adonai Resources II Corporation. It is located between the Northgate and Florence Frobisher beds oil pools. This parcel was issued with rights from the base of the Midale beds to the top Precambrian and is prospective for oil in the Mississippian Frobisher beds.  

A parcel north of Lampman received the highest dollar per hectare bid of $6,433.42 with Scout Energy Ltd. bidding $419,414 for the 65.193-hectare lease. The parcel is prospective for oil in the Frobisher beds.  

The southeast region saw the most interest, bringing in $4,346,574 for 49 leases totalling 4,125.495 hectares. There were 54 leases posted. 

The parcels encompassed 4,125.495 hectares, or $1,053.59 per hectare.  

The total bonus received for the Lloydminster area was $701,648. All 17 leases posted were sold, encompassing 1,302 acres, or $538.81 per hectare.  

The highest bonus bid and dollars per hectare received on a lease was $277,075, or $2,132.68 per hectare. This lease was awarded to Longshore Resources Ltd. and is located approximately five kilometres north of Macklin. This area is prospective for heavy oil in the Mannville Group. 

In the Kindersley-Kerrobert area, in addition to the licence, the one lease available was sold for $24,413. Encompassing 16.2234 hectares, it was $1,503.87 per hectare. The lease was awarded to Baytex Energy Ltd., and is located three kilometres south of Smiley. The parcel is located within the Smiley Dewar Viking sand pool and is prospective for oil and natural gas in the Viking formation and oil in the Bakken formation.   

The total bonus received in the Swift Current area was $1,594.45, an average of $3.50 per hectare. Five of the six leases posted were sold. 

The highest bonus bid and dollars per hectare received on a lease in this area was $683.73 or $3.50 per hectare. This 195.350-hectare lease was awarded to Canadian Natural Resources Ltd. and is located 22 kilometres west of Fox Valley.   

The October sale is the fourth of six oil and gas public offerings scheduled for the 2022-23 fiscal year. The next sale will be held on Dec. 6 and will feature 133 leases covering 18,541 hectares, and three exploration licences covering 5,349 hectares. 

 

 

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