The October public offering of Crown petroleum and natural gas rights in Saskatchewan benefitted once again from sustained interest in the southeast region, with the area bringing in $17 million of the $19 million raised in the sale.
This brings the year-to-date total in oil-gas land sales to $51 million, surpassing the previous fiscal year鈥檚 total of $50 million, with two sales still remaining in this fiscal year.
鈥淎long with increases in provincial drilling forecasts, this is an indicator of a noticeable upward trend in Saskatchewan鈥檚 resilient oil patch,鈥� said Energy and Resources Minister Nancy Heppner.
鈥淎s this key economic sector continues its ongoing recovery, Saskatchewan will continue to provide a stable, competitive and responsible investment climate for energy resource development that ranks among the best in the world,鈥� she added.
The total bonus received in the southeast area was $17,286,001, an average of $153.14 per hectare. This compares to $6,636,483, an average of $276.64 per hectare at the last offering.
There were 20 licenses posted for 121,649.11 ha, and four leases for 825.57 ha. Of these, 19 licenses sold for a total of $17,096,387.88, or $151.88/ha, and three leases sold for $189,613.94.
The 19 exploration licenses were for land west of Estevan, with four companies successful in acquiring the licenses.
Scott Land and Lease Ltd. bid $7,944,214.74 for seven licences totaling 41,342.89 ha; Stomp Energy bid 45,554,245 for five licences totaling 22,953.88 ha; Plunkett Resources Ltd. bid 43,266,731.67 for five licences totaling 42,249.38 ha; and Lexterra Land Ltd. bid $331,196.25 for two licences, totaling 6,021.75 ha.
These parcels are prospective for multiple targets, including the Ratcliffe Beds of the Madison Grup, and Bakken, Torquay, Birdbear, Winnipegosis and Red River Formations.
Top purchaser of acreage in the area was Scott Land and Lease, and the top price paid for a single licence was $3,090,323, paid by Scott Land, for a 5,827.5 ha parcel situated adjacent to the Hummingbird Bakken Oil Pool, 30 km south of Radville.
The top price paid for a single lease in the area was $155,255, paid by Scout Energy Ltd. for a 226.63-ha parcel situated adjacent to the Hoffer Ratcliffe Beds Oil Pool, 10 km west of Oungre.
The highest dollar per hectare in the southeast was received from Buffalo Hill Resources Ltd., who paid $1,312.45 per ha for a 16.19-ha parcel located in the Frobisher-Alida Beds Pool, 20 km southwest of Carlyle.
The next public offering of petroleum and natural gas rights will be held on Dec. 5.
