One lease parcel southeast of Radville brought in most of the bucks in the June 5 Crown land sale, whose results were posted on June 7.
One exploration licence in southeast Saskatchewan received a bonus bid of $10,511,566. This parcel was purchased by Stomp Energy Ltd. and is prospective for multiple targets including the Ratcliffe Beds of the Madison Group and the Bakken, Torquay, and Red River Formations.
The average price per hectare in Saskatchewan is currently $725, the highest when compared to public offerings held to date in Alberta and British Columbia, the provincial government noted.
鈥淚ndustry鈥檚 investment in petroleum and natural gas rights in Saskatchewan is a good measure of the opportunity and potential that exists in our province鈥檚 oil and gas sector,鈥� Energy and Resources Minister Bronwyn Eyre said in a press release on June 7. 鈥淒ollars invested by this industry support Saskatchewan jobs, communities, and our province鈥檚 economic future.鈥�
Forty parcels totalling 11,400 hectares were sold for $3,454,719 in the Kindersley area. These parcels are prospective for oil and gas in the Viking Formation, Mannville Group, and Bakken Formation. Cougar Creek Land Ltd. bid $608,948 to acquire a 243 hectare lease located south of Maidstone. This parcel is prospective for heavy oil in the Mannville Group.
The next public offering of petroleum and natural gas rights will be held on August 14, 2018.
Estevan-Weyburn area
One single exploratory license offered in this area fetched $10,511,566, paid by Stomp Energy Ltd. It was for the 1,036 hectare block located adjacent to the Hoffer Ratcliffe Beds Oil Pool, 40 kilometers southeast of Radville. This parcel is the highest dollar per hectare in this area at $10,146 per hectare.
There were seven leases posted and sold, totalling 648 hectares and bringing in $975,327, or $1,506 per hectare. The top price paid for a single lease in this area was $600,087, paid by Plunkett Resources Ltd. for a 130 hectare parcel situated five kilometres north of the Torquay Main Torquay Oil Pool, 40 kilometres west of Estevan.
Kindersley-Kerrobert area
Two exploratory licenses were posted in this area and just one sold. It was for 518 hectares and brought in $213,307, or $412 per hectare.
Of the 51 leases posted, 39 sold, totalling 10,882 hectares. The bonus for the leases was $3,241,412, of $298 per hectare.
Top purchaser of acreage in this area was Saturn Oil and Gas Inc., who spent $768,896.83 to acquire nine lease parcels. In its own press release, Saturn noted the additional 6.75 sections brings their total land position to 24.25 sections (19.25 net).
Saturn noted it picked up 2.25 contiguous sections with rights from surface to top of Precambrian in the Kerrobert area. The parcel has recent Viking production on offsetting sections. Saturn has identified multiple horizontal well locations on the parcel and will be licensing an extended reach horizontal Viking well that the Company anticipates it will drill during its 2018 summer drill program.
Saturn also acquired 3.0 contiguous sections with rights from surface to top of Precambrian in the Prairiedale area. The parcel has recent Viking production on offsetting sections. Saturn has identified multiple horizontal well locations on the parcel and will be licensing an extended reach horizontal Viking well in the coming weeks to be drilled during the 2018 summer drill program.
The lone licence that sold in this area fetched $213,307, paid by Windfall Resources Ltd. for the 518 hectare block located 10 kilometres north of the Plenty Viking Sand Oil Pool, 35 kilometers east of Kerrobert.
Top price paid for a single lease in this area was $340,836 paid by Windfall Resources Ltd. for a 259 hectare parcel situated five kilometres southwest of the Forgan West Viking Sand Oil Pool, 20 kilometers south of Elrose. This is the highest dollar per hectare in this area at $1,316 per hectare.
Swift Current area
One singular lease was posted and sold in the Swift Current area. It was for 65 hectares and earned a $61,090 bonus, at $945 per hectare. It was acquired by Scott Land & Lease Ltd. The parcel is located within the Gull Lake Basal Cantuar Sand Oil Pool, 5 kilometres southwest of the town of Gull Lake.
Lloydminster area
The Lloydminster area saw only three leases posted and sold, totally 583 hectares for $631,876. That came to $1,084 per hectare.
Top purchaser of acreage in this area was Cougar Creek Land Ltd. who spent $608,948 to acquire one lease parcel, making it the top price paid for a single lease in this area. The 242.81 hectare parcel is situated adjacent to the Soda Lake Cummings Oil Pool, 55 kilometers southeast of Lloydminster. This is the highest dollar per hectare in this area at $2,508 per hectare.
