Saskatchewan's dynamic oil patch continues to attract interest and investors, as shown by the results from the first sale of Crown petroleum and natural gas rights for 2012.
February's sale generated $28.7 million in revenue for the province. That number also brought total land sale revenues for the 2011-12 fiscal year to $234.1 million.
"This was another solid land sale for the province and a very good start to the year," Energy and Resources Minister Bill Boyd said. "What we saw in this sale was fierce competition among junior companies for dispositions, and strong interest in geological plays across the province beyond the Bakken and Lower Shaunavon.
"Major companies are busy working their existing inventories, and Saskatchewan is coming off its second-best year for oil well drilling. The signs are pointing to a great year ahead for our industry."
February's sale included 182 lease parcels that attracted $26.4 million in bonus bids and six petroleum and natural gas exploration licences that sold for $2.3 million.
The Weyburn-Estevan area received the most bids with sales of $13.4 million. The Kindersley-Kerrobert area was next at $7.4 million, followed by the Lloydminster area at $6.1 million and the Swift Current area at $1.8 million.
The highest price for a single parcel was $1.8 million. Westfire Energy Ltd. acquired this 259-hectare lease parcel northeast of Eston.
The highest price on a per-hectare basis was $10,405. Scott Land & Lease Ltd. bid $168,462 for a 16-hectare lease parcel south of Lashburn.
The next sale of Crown petroleum and natural gas dispositions will be held on April 9, 2012.
