December’s public offering of Saskatchewan’s Crown petroleum and natural gas rights on Tuesday raised $14 million in revenue for the province, bringing the total for the fiscal year to date to $48 million with one sale remaining.
This is the second-largest revenue for a single public offering so far in the 2016-17 fiscal year, and the current total has now exceeded the amount of $43 million for the previous fiscal year.
“This increased investment shows that the petroleum industry continues to recognize the opportunities that exist in Saskatchewan,” Energy and Resources Minister Dustin Duncan said. “More oil wells were drilled in Saskatchewan in the first 11 months of 2016 than in Alberta, an indicator that our province is setting the pace in Canada in terms of both industry activity and policy attractiveness.”
Tuesday’s public offering occurred on the same day that the Fraser Institute released its 10th annual global survey on barriers to investment in oil and gas exploration and production facilities. According to the 2016 survey, international petroleum industry executives and managers now rank Saskatchewan as the fourth most attractive jurisdiction for investment in the world, rising from seventh place, and number one in Canada, while Alberta fell 18 spots in the world rankings to 43rd.
One exploration licence and two leases located west of Estevan received bonus bids in Tuesday’s public offering, totalling $7.6 million for 1,554 hectares. Stomp Energy Ltd. was the successful bidder of these parcels that are prospective for multiple targets, including the Midale and Frobisher Beds of the Madison Group, the Bakken Formation, the Three Forks Group/Torquay Formation and the Red River Formation.
The next public offering of petroleum and natural gas rights will be held on February 7, 2017.