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While the Saskatchewan government took in more revenue from its Oct. 7 oil and gas land sales than it has for nine years, the sales from the Weyburn-Estevan area were lower than they've been all year. The government realized $36.8 million from the land sales, with $1.1 million of that coming from the Weyburn-Estevan area. A spokesman for the Saskatchewan department of Industry and Resources in Regina said less land was requested this month in Weyburn-Estevan than earlier in the year. "It could be the companies are all interested in the gas-prone properties and there are none in Weyburn-Estevan," said Ed Danscok. "But you'd think with $30/barrel oil the companies would be buying," he said. It's not clear why the activity is still depressed in that area, he said. Sales in Weyburn-Estevan brought in $3.2 million in August, $1.3 million in June, $2.4 million in April, and $1.6 million in February. Industry and Resources minister Eric Cline said the overall sale numbers are the latest indication that the oil and gas industry views Saskatchewan as a great place in which to do business. "The climate is right for even more exploration and development by our top industry, which translates into an even stronger economy for our province," he said. The province has taken in $127 million in total this year from land sales, far more than the $77 million collected for the same period last year. October's sale netted $18.2 million on the sale of 44 exploration licences and $18.6 million for 349 lease parcels. One special exploratory permit was awarded to Burlington Resources Canada Ltd. on a work commitment bid of $3.8 million for a large area of nearly 20 townships west of Assiniboia. The Swift Current area received the most bonus bid activity, with sales of $21.7 million. The Kindersley-Kerrobert area was next at $8 million, followed by the Lloydminster area at $6 million. The highest price received for a single parcel was $2,542,365. Prairie Land and Investment Services Ltd. of Regina purchased this 35-section exploration license, located near Consul in southwest Sask. The highest price per hectare was $2,415. Bristol Land and Lease Ltd., of Calgary purchased this 16-hectare lease parcel, located 20 km east of Lloydminster for $39,101. The next sale of Crown petroleum and natural gas dispositions will be on Tuesday, Dec. 9. |
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