October Land Sale Yields $9.8 Million
Released on October 8, 2015
The October sale of petroleum and natural gas rights raised $9.8 million in revenue for the province at an average price of $220 per hectare. After five sales in 2015, land sale revenues total $45.5 million.
“The long-term viability of Saskatchewan’s oil patch relies on new discoveries,” Economy Minister Bill Boyd said. ”The province is cautiously optimistic that exploration activities on the lands acquired will prove successful.”
The October sale saw the Weyburn-Estevan area receive the most bids with sales of $6.7 million. The Lloydminster area was next at $1.8 million, followed by the Kindersley-Kerrobert area at $1.0 million and the Swift Current area at $357,844.
The highest price paid for a single parcel was $832,355. Triland Energy Inc. acquired the 259-hectare lease west of Willmar. The highest price on a per-hectare basis was $10,045. Scott Land & Lease Ltd. bid $650,449 for a 64.75-hectare lease east of Stoughton.
“It is encouraging that under-explored areas of the province continue to attract the attention of industry,” Boyd said. “Saskatchewan’s investment climate is proving very attractive even at a time of volatile prices.”
The four exploration licences and one lease that sold for $2.0 million southwest of Weyburn are located in an area that is prospective for Mississippian carbonates, the transitional Mississippian-Devonian Bakken Formation and underlying Torquay Formation, the deeper Devonian Birdbear and Winnipegosis Formations, and the Ordovician Red River Formation. The Bakken is also being developed immediately to the south in the United States.
The next sale of Crown petroleum and natural gas rights will be held on December 1, 2015.
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