APRIL LAND SALE BRINGS IN $7.7 MILLION

April 11, 2013

The April sale of petroleum and natural gas rights brought in $7.7 million in revenue for the province. After two sales in 2013, year-to-date revenue from land sales total $19.6 million.

While land sale activity has been comparatively quiet over the past year if you consider the all-time record set back in 2008, it is to be expected as industry concentrates on drilling the huge inventory of land that has been acquired,” Energy and Resources Minister Tim McMillan said. “There are a significant number of leases up for renewal in the next few years and we expect that much of that land will revert back to the Crown and, as a result, there could be increased land sale revenue.”

The Weyburn-Estevan area received the most bids with sales of $5.0 million. The Lloydminster area was next at $1.1 million, followed by the Swift Current area at $1.0 million and the Kindersley-Kerrobert area at $623,103.

“Industry continues to pay a premium for the lands it acquires, with this sale averaging more than $900 per hectare,” McMillan said. “Drilling activity is steady, and with major investments by industry in secondary recovery projects that have the potential to increase production from the Bakken, the future looks bright for Saskatchewan’s oil patch.”

The highest price paid for a single parcel was $3.1 million. Federated Co-operatives Limited acquired this 807-hectare exploration licence near Corning. The highest price on a per-hectare basis was $25,525. Scott Land & Lease Ltd. bid $826,252 for a 32-hectare lease parcel west of Shaunavon.

The next sale of Crown petroleum and natural gas dispositions will be held on June 3, 2013.

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For more information, contact:

Deb Young Economy Regina Phone: 306-787-4765 Email: deb.young@gov.sk.ca

via Prosperity Saskatchewan http://prosperitysaskatchewan.wordpress.com/2013/04/12/april-land-sale-brings-in-7-7-million/

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