June’s public offering of Crown petroleum and natural gas rights raised $22.8 million on June 6, the largest revenue for a single offering in almost three years by the province.
The total for the 2017 fiscal year to date is $24 million after two sales. The fiscal year’s current average price per hectare is $828.81, almost double Alberta’s average of $470.71 for conventional oil and gas parcels, and comes in the wake of recent upward trends in oil drilling activity in Saskatchewan.
In the Weyburn-Estevan area, the total revenue raised was $7,769,096, an average of $1,728.86 per hectare. This compares to $570,988 at the last sale, with an average of $233.60 per hectare.
There was one licence posted and 38 leases, and the licence sold for $4,002,780 or an average of $3,015/ha, along with 32 of the leases covering 3,166 ha for $3,766,316 or $1,189/ha, covering a total of 4,493.77 hectares.
The southeast area was second in the province behind the Lloydminster area, which saw revenues of $12,555,245. Behind the Weyburn-Estevan area was Kindersley with $2,071,685, and Swift Current with $443,152.
“This is a significant revenue increase and the highest for any of Saskatchewan’s past public offerings since August of 2014,” said Energy and Resources Minister and Weyburn-Big Muddy MLA Dustin Duncan.
Millenium Land Ltd. bid $4,002,780 to acquire a 1,327-ha exploration licence located 55 km southwest of Midale, the highest price paid for a lease in the province. The parcel is prospective for multiple targets, particularly the Bakken Formation and the Three Forks Group-Torquay formation.
This company was also the top purchaser of acreage in the southeast, as they spent $5,232,212 to acquire five lease parcels and one exploration licence.
The top price paid for a single lease in this area was $907,730, paid by Scott Land and Lease for a 259-ha parcel situated partially within the Oungre Ratcliffe Beds Pool, located 60 km west of Estevan.
The highest dollar per hectare was received from Millenium Land Ltd., who paid $6,185.76/ha for a 64.75-ha parcel located adjacent to the Hoffer Ratcliffe Beds Pool, located 75 km southwest of Estevan.
The next public offering of oil and gas rights will be held on Tuesday, Aug. 1.
