Province holds April sale of oil and gas rights

The public offering of Crown petroleum and natural gas dispositions held on April 7 raised a total of $1,723,724, an average of $123.94 per hectare.

This is the first of six oil and gas public offerings for the 2020-21 fiscal year. This compares to the $1,897,971 received at the previous sale, held on Feb. 4.

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The total bonus bids received in the southeast area was $128,858, average of $268.28 per hectare, down significantly from the $1,646,667 raised in the February sale.

There were 10 leases posted and no licenses, with nine of the leases sold.

The highest bonus bids in the southeast were for a parcel located 10 km west of Torquay and north of the Torquay Main Torquay Oil Pool.

This 140.377-ha lease was purchased by Crescent Point Energy for $45,465.

The top dollars per hectare received in the southeast was for a parcel located in the Steelman Oil Pool, two kilometres southwest of the village of Frobisher.

Tundra Oil and Gas Limited purchased this 32.376-ha lease for $19,526, or $603.13 per hectare.

Provincially, there were 167 leases posted and no licenses, with 74 of the leases sold. The Lloydminster and Kindersley areas generated the majority of the bid activity, as the Lloydminster area brought in $848,629.60 for 19 parcels totalling 2,169.132 hectares, while the Kindersley area brought in $731,624.20 for 43 leases totalling 11,063.984 hectares.

Fourteen parcels, comprising 841.750 hectares in the Lloydminster area, received a total bonus amount of $628,982.18. These parcels are prospective for heavy oil in the Mannville Group.