Crown land sale brings in quarter million dollars

(Photo by Greg Nikkel)

The Feb. 2 Crown land sale for petroleum and natural gas rights was yet another one of the lowest over the last decade, generating $251,672 in revenue for the province of Saskatchewan. This is the last of six oil and gas public offerings for the 2020-21 fiscal year and brings cumulative earnings to $6,482,214. 

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A total of 28 leases were posted, with 10 selling. Province-wide, the average was $149 price per hectare, but there was a very wide range of prices. 

In the Weyburn-Estevan area five leases were posted and all five sold. They brought in $111,102 for 518 hectares, with an average price of $214 per hectare.

The highest bonus bid received in this area was $92,584 for a lease totaling 259 hectares. This was also the highest bid on a dollar per hectare basis received in this area at $357 per hectare. This lease went to Crescent Point Energy Corp. and is located 23 kilometres northeast of Stoughton. The company has an active drilling program in that general area this winter.

It is notable that historically Crescent Point has used land agents to obscure its acquisitions, but in recent land sales, the oil company itself has been showing up in these media releases.

Millennium Land Ltd. picked up four leases located 13 kilometres west of Estevan. These leases each received a bid of $4,630 or $72 per hectare.

The Lloydminster area brought in $113,947 for two parcels totalling 388.5 hectares. There had been 10 leases posted. The average price was $293 per hectare in this region. 

The highest bonus bid received on a parcel in this offering was $100,736 for a lease in the Lloydminster area, totalling 129.5 hectares. This was also the highest bid on a dollar per hectare basis at $778 per hectare. This lease was awarded to Soo Lone Resource Group Ltd. and is prospective for heavy oil in the Mannville Group.

In the Kindersley-Kerrobert area, three of 13 posted leases sold. The total bonus was $26,623 for 777 hectares. These parcels averaged $34 per hectare. Two of them went to a numbered company, 818541 Alberta Ltd. Nothing was posted or sold in the Swift Current area. 

The scheduled date for the next public offering is April 6, 2021.