Saskatchewan鈥檚 October public offering of Crown petroleum and natural gas rights, held on Tuesday, generated $2.1 million in revenue for the province.
This was the fourth of six public offerings scheduled throughout the fiscal year. The 2018-19 fiscal revenue total now stands at $27.2 million.
According to the news release from the Ministry of Energy and Resources, the energy industry in western Canada is prepared to compete for the right to explore and develop Saskatchewan鈥檚 oil and gas rights, as the province鈥檚 public offerings have averaged more than $500 on a per-hectare basis to date, compared to approximately $275 per hectare in Alberta.
鈥淲e are encouraged by the confidence shown by the oil and gas industry in Saskatchewan鈥檚 prospects,鈥� Energy and Resources Minister Bronwyn Eyre said. 鈥淭he industry continues to see Saskatchewan as a strong choice for long-term investment.鈥�
There were 56 parcels purchased totalling 7,068.208 hectares, for a total of $2,134,898.07. The Kindersley area received the most attention in this public offering, as 24 leases totalling 5,293.318 hectares were sold for $1,295,855.70.听 The Estevan area brought in a total of $664,626.03, with 19 leases totalling 1,434.942 hectares.
The top dollars per hectare in this offering was $3,203.36 per hectare for a 32.376-hectare parcel located southeast of Carnduff, which was purchased by Federated Co-operatives Ltd. and is prospective for oil in the Frobisher Beds of the Madison Group.
The highest bonus bid for a parcel was $170,388.33 for 259 hectares. This parcel, located north of Eston, was purchased by Millennium Land Ltd. and is prospective for oil in the Viking Formation.
The next public offering of petroleum and natural gas rights will be held on Dec. 4. 听
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