OCTOBER LAND SALE HIGHEST IN TWO YEARS

Released on October 3, 1996

Interest in a relatively unexplored area in Northern Saskatchewan
spurred revenues from the October sale of Crown petroleum and natural
gas rights to the highest level in two years, Energy and Mines Minister
Eldon Lautermilch announced today.

"With the $35.8 million realized from this sale, the calendar year
total revenue to the province now stands at $95.1 million," Lautermilch
said. "This means we have already exceeded 1995's year-end sales
which, while reflective of oil prices, is also a very solid endorsement
by industry of our oil and gas policies."

The highlight of this sale is a group of ten permits sold immediately
north of the Primrose Lake Air Weapons Range. These permits cover an
area of 122,717 hectares and sold for $11.3 million. Canadian
Occidental Petroleum Ltd. bought five of the permits, Crestar Energy
Inc. bought four and Wascana Energy Inc. bought one. These permits
will extend exploration north of the existing producing areas on the
west side of the province.

The Lloydminster area received the most bonus bid activity with sales
totalling $14.8 million. The Weyburn-Estevan area was second with
$13.2 million. The Kindersley-Kerrobert and Swift Current areas
followed with $6.9 million and $800,000 respectively.

As of this period last year, sales revenues were $51.5 million; at year
end they were $65.7 million. The previous sale, held in Aug. 1996,
realized $14.8 million. The record for a single sale was established
in Oct. 1994 at $84.8 million.

The next sale of Crown petroleum and natural gas rights will be Dec.
10, 1996.

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For more information, contact:

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