Southeast Saskatchewan was the focus of activity in August’s sale of oil and gas rights, with the region bringing in more than $6 million of the $8 million in total revenue.
For the sale, held on Aug. 1, there were six licences and 63 leases posted, and the licences sold for a total of $1,605,454, covering 17,612 hectares of land. Of the leases, 57 were sold for a total of $5,031,029 on 6,377.9 hectares of land, for an average of $788.82 per hectare.
The same day as the sale, the Petroleum Services Association of Canada (PSAC) updated their drilling forecast for 2017, as they now forecast there will be 2,794 oil wells drilled in Saskatchewan, up by 44 per cent from the previous forecast of 1,940 wells for this year.
“These figures, along with positive expectations by industry, suggest our oil and gas sector is regaining momentum after a prolonged period of transition,” said Energy and Resources Minister and Weyburn-Big Muddy MLA Dustin Duncan.
“There’s no doubt that this kind of renewed activity in Saskatchewan’s oil patch bodes well not only for our communities that rely on this industry for jobs and growth, but also for our economy at large,” he added.
The six exploration licences for an area southwest of Radville received bonus bids totaling $1,605,454. Stomp Energy bid $922,675 to acquire four of these licenses, totaling 11,655 ha, and Millenium Land Ltd. bid $682,788 to acquire the other two licences totaling 5,957 ha. One of their licenses received the highest price of $431,639 for a 3,108-ha parcel for a parcel 20 km south of Radville.
These parcels are prospective for multiple targets, including the Ratcliffe Beds of the Madison Group and the Bakken, Torquay and Birdbear Formations.
Millenium Land was also the top purchaser of acreage in this area, spending $1,385,471 to acquire the two licenses and two lease parcels.
The top price paid for a single lease was $442,163, paid by Millenium Land for a 64.75-ha parcel located five km north of the Torquay Main Torquay Pool, 55 km southeast of Radville. This was the highest dollar-per-hectare in the offering at $6,828.78/ha.
This parcel is prospective for multiple targets, particularly the Bakken Formation and the Torquay Formation.
The next offering of petroleum and natural gas rights will be held on Oct. 3, 2017.
