The Saskatchewan Crown land sale for oil and gas mineral rights was worse than the last one, but better that the one before that. The Crown land sale results announced by the Ministry of Energy and Resources on Friday saw $769,849 in revenue brought in. In August, it was $2.4 million, while the June sale saw $442,000.
Land sales occur every two months are posted several months in advance. Oil companies, typically through their land agents, will ask the Ministry of Energy and Resources to put a certain parcel up for bid, and then bid competitively on that parcel.
This is the fourth of six oil and gas public offerings and brings the cumulative 2020-21 fiscal year total to $5,317,643. This time around, there were 137 leases covering 14,513 hectares posted, but only 59 parcels covering 6,329 hectares were sold.
Crescent Point Energy Corp. was the most active bidder in this offering, picking up eight leases totalling 777 hectares for $211,526, an average of $272 per hectare. After a few years of disposing of acreage, Crescent Point is again in the game of acquiring it.
The Estevan-Weyburn and Swift Current areas brought in the majority of the bid activity.
The Estevan-Weyburn area received $362,967 in bids for 39 parcels totalling 2,574 hectares. The highest bonus bid received in the southeast was on a 259-hectare lease located four kilometres west of Lampman and adjacent to the Bryant Midale Beds Oil Pool and the Bryant Frobisher Beds Oil Pool. Aldon Oils Ltd. bid $40,111 or $155 per hectare on this parcel.
Villanova Energy Inc. bid $772/hectare on a 32-hectare lease, which is the top dollars per hectare received on a parcel in the southeast area.
Crescent Point Energy Corp. was the most active bidder in this area, picking up five leases totalling 324 hectares for $103,080, an average of $318 per hectare.
In the Swift Current area, 15 of 34 posted leases sold, totalling 2,202 hectares. That brought in $209,794, averaging $95 per hectare. Crescent Point Energy Corp. was the most active bidder in this area, picking up three leases totalling 453 hectares for $108,446, an average of $239 per hectare.
The highest bonus bid received in the October public offering was $84,922 for a lease in the Lloydminster area. This 259-hectare lease was awarded to Lacadena Land Company Inc. and is prospective for heavy oil in the Mannville Group.
The scheduled date for the next public offering is December 1, 2020.