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1996 MARKS FOURTH-HIGHEST REVENUES IN LAND SALE HISTORY

Released on December 12, 1996

Energy and Mines Minister Eldon Lautermilch today announced that as a
result of the December sale of Crown petroleum and natural gas rights,
1996 calendar year revenues are the fourth-highest since the sales
began in 1952. The December sale realized $27.1 million in revenue for
the province, bringing the calendar year total to $122.2 million.

The three higher calendar year sales were $199.7 million in 1994,
$148.6 million in 1985 and $123.7 million in 1984.

"Land sale revenues are a good indicator of future activity in
Saskatchewan by oil and gas companies," Lautermilch said. "I'm pleased
by our strong performance in 1996 and I'm optimistic about 1997,
assuming oil prices remain stable."

The Weyburn-Estevan area received the most bonus bid activity with
sales totalling $15.3 million. The Kindersley-Kerrobert area was
second with $6.6 million. The Lloydminster and Swift Current areas
followed with $3.6 million and $1.6 million, respectively.

The highest price received for a single lease parcel was $466,200.
Western Land Services Co. Ltd. paid this same amount for two
259-hectare parcels two kilometres south of the Benson Midale Beds Pool
in the southeast part of the province.

The highest price on a per hectare basis was $4,657.79. Jordan
Petroleum Ltd. paid $75,409.62 for a 16-hectare parcel on the east side
of the Parkman Tilston-Souris Valley Beds Pool which is also in the
southeast part of the province.

The next sale of Crown petroleum and natural gas rights will be held
February 11, 1997.

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For more information, contact:

Gordon Hutch, Director
Geology and Petroleum Lands Branch
Energy and Mines
Regina
Phone: (306) 787-2606

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