The August sale of petroleum and natural gas rights brought in $15.1 million in revenue, with the most bids received in the Weyburn-estevan area. The average price paid for leases this sale was $690/hectare, the highest since the August 2011 land sale.
“Saskatchewan continues to offer great resources in a competitive climate,” Energy and Resources Minister Tim McMillan said. “The premium that industry has placed on acquiring oil and gas leases shows that this is a great place to invest.”
Year-to-date revenue from the four land sales held in 2013 is $44.3 million.
The Weyburn-Estevan area received the most bids with sales of $11.1 million. The Kindersley-Kerrobert area was next at $2.1 million, followed by the Swift Current area at $1.1 million and the Lloydminster area at $688,887.
The three oil shale special exploratory permit blocks on offer near Hudson Bay received a total of $4.6 million in work commitment bids from Canshale Corp.
The highest price paid for a single parcel was $1.7 million. Scott Land & Lease Ltd. acquired the 1,036-hectare exploration licence north of Estevan.
The highest price on a per-hectare basis was $5,617. Mammoth Land Services Ltd. bid $363,702 for a 64.75-hectare lease south of Gull Lake.
“Industry continues to show confidence in the potential for new discoveries in Saskatchewan, and the rejuvenated interest in our oil shale underscores that optimism,” McMillan said. “Prior to this sale there were four oil shale special exploratory permits active in the Hudson Bay area. The addition of three new permits in this sale more than doubles the acreage under exploration.”
The next sale of Crown petroleum and natural gas dispositions will be held on October 7, 2013.