The total amount collected in the most recent offering of Crown land for petroleum and natural gas rights, may not have appeared that impressive, but the prices paid on a per-hectare basis, definitely were.聽
The first sale in the 2016 calendar year yielded a total of $5.1 million in revenue for the province, which brought the final fiscal year land sale revenue for 2015-16 to $44 million.聽
The land sale income reflected the current oil market cycle, bringing in about 50 per cent of what was gained in the December 2015 sale which was $10.92 million.聽
The industry, however, continued to place a premium on a good portion of the Saskatchewan land that they intend to drill on in the future, showing some proof the province will remain a preferred jurisdiction for conventional producers now and in the future.
Last week鈥檚 sale averaged $444 per hectare compared with Alberta鈥檚 latest sale that averaged $117 per hectare and British Columbia鈥檚 that came in at around $76 per hectare.聽
鈥淥il prices continue to have an impact on activity across Western Canada, as industry exercises caution in increasing their land inventories,鈥� said Bill Boyd, minister of the economy. 鈥淎t the same time, Saskatchewan lands are at a premium, reflecting our reputation as the top jurisdiction in Canada and among the top 10 in the world for petroleum investment attractiveness.鈥澛�
The Estevan-Weyburn area again led the way in the sale, accounting for 80 per cent of the total sales. Four parcels located west of Estevan received bonus bids totaling $2.1 million from Mammoth Land Services Ltd. The region has multiple zones of interest including the Torquay and Bakken formations along with the Midale beds.聽
The highest price paid on a per-hectare basis was $5,006 paid by Mammoth who picked up a 32-hectare spread for just over $162,000 just south of Arcola.聽
In the December 2015 land sale, the average price paid per hectare was $685.聽
In this month鈥檚 sale, there were just 91 leases up for grabs, a rather modest offering. Sixty-two of them were purchased.聽
Mammoth spent just under $2.5 million in acquiring 12 of these land parcels.聽
The top price paid for a single lease was paid by Mammoth who spent just under $1.04 million for a 259-hectare parcel located two kilometres west of the Bromhead East Red River Oil Pool, 45 kms west of Estevan.聽
The total amount received in the southeast sector was $4.05 million, an average of $605.49 per hectare. This compares with the $2.92 million collected in the last sale with an average per hectare price of just under $899.聽
In the Estevan-Weyburn area, 36 leases were picked up out of the 46 leases that were offered for sale.聽
In the Kindersley area on the provinces west-central side, 11 of the 23 leases up for sale were actually purchased for a total of $579,637, an average of just under $206 per hectare. In the last sale, the total income from this region amounted to just over $2.9 million with an average price of almost $554 per hectare.聽
The third busiest sector in the sale was the Lloydminster region where about $416,000 was spent in purchasing 14 of the 20 leases that were up for bids. The average price paid there was just over $223 per hectare compared with the $4.83 million that was spent in the December 2015 sale that averaged $761 per hectare.聽
The Swift Current region in the southwest corner saw only two leases on offer and only one of them was picked up for a total sale of $4,862 and an average of just over $300 per hectare.聽
There were no gas prone parcels offered in this latest sale and it was reported that the next sale of Crown land for the industry will be April 12. 聽
