Driven largely by continued interest in Saskatchewan’s southeast region, the December public offering of Crown petroleum and natural gas rights on Dec. 5 posted revenue of $9.6 million.
With a sixth and final sale still remaining for the 2017-18 fiscal year, the total is currently $61 million, already above the previous fiscal year-end total of $50 million.
“Saskatchewan’s favourable policy and operating environment provides the industry with the kind of stability it seeks,” Energy and Resources Minister Nancy Heppner said. “Drilling activity, oil and gas related revenue, and industry investments in new exploration and development are all trending upward in Saskatchewan for 2017. We will do our part to help sustain this growth.”
Southeast Saskatchewan remains a focus of significant industry attention with 80 leases awarded on Dec. 5, consisting of 6,574.166 hectares and fetching $5,084,478.09. There were 83 leases posted for the sale.
Spartan Energy Ltd. bid $587,340.78 for a 129.5-ha parcel south of Alameda, and this was the top price paid for a single lease. This parcel is prospective for oil in the Frobisher and Midale Beds of the Madison Group, and is located 10 km south of Alameda. Spartan Energy was also the top purchaser of acreage in the southeast, spending a total of $1,020,358 to acquire 18 lease parcels.
The highest dollar per hectare in the southeast area was received from Synergy Land Services Ltd., who paid $12,509.99 per hectare for a 32.38-ha parcel located within the Steelman Midale and Frobisher Beds Pools, located five km south of Lampman.
One lease south of Wilkie received a bonus bid of $1,642,015.97 for 259 hectares. This lease was purchased by STOMP Energy Ltd. and is prospective for oil in the Mannville Group.
The next public offering of petroleum and natural gas rights will be held on February 6, 2018.
