Written by Colin Powers on Monday, 09 February 2015
The first land sale for 2015 was a bit of a surprise for the Provincial Government
Despite a slowdown in the oil markets, where crude is now trading at half of what it was a few months ago, the February sale of Crown oil and gas rights brought in $17.5 million in revenue for the province.
“We were pleasantly shocked at the number and quality of bids we received for this sale,” said Royce Reavley, Manager of Crown Sales for the government’s Petroleum Tenure Branch. “The Swift Current area fetched $3.2 million in bonus bids, so a fairly strong sale for that region.”
The Estevan/Weyburn area saw the most bids with $8.3 million in sales, followed by the Lloydminster area at $5.3 million.
Reavley says they are hopeful this sale will lead to optomistic times in the future for the oil sector in Saskatchewan, adding they expect this current slowdown in the markets won’t last too long.
“History has shown in the past that commodity prices do fluctuate, but downturns have historically not been too lengthy, particularly in the last couple of slowdowns,” he added. “These dispositions we were offering are all for five-year primary term leases, so certainly within the life of that lease, we would expect there would be higher commodity prices and increased interest in drilling.”
The next Crown land sale will be held on April 6th.
via Local News http://ift.tt/1KAdb0X