LOW OIL PRICES CONTINUE TO SLOW LAND SALE ACTIVITY

Released on April 9, 1998

Energy and Mines Minister Eldon Lautermilch today announced that the

April sale of Crown petroleum and natural gas rights realized

$5.8 million in revenue for the province. This is down from the

$8.3 million received in the February sale which was also affected by

the decline in crude oil prices.



"The continuing weakness in crude oil prices is contributing to a

decline in land sale revenues in all the western provinces,"

Lautermilch said.



Lautermilch noted that because of large sales in the years preceding

1998, there is a large inventory of land in the hands of the oil and

gas companies and there is a reduced need for them to acquire

additional lands, especially given depressed crude oil prices.



While land sale activity has been somewhat slow, Lautermilch indicated

drilling is continuing at a good pace. Five-hundred-and-forty-five

wells were drilled to March 27 representing an 18 per cent decline

from the first quarter of 1997. Lautermilch added this year's first

quarter drilling is still ahead of 1995 and 1996, which were very good

years for drilling in the province.



The April sale included two permits sold for $144,909 and 206 leases

sold for $5.65 million.



The Weyburn-Estevan area received the most bonus bid activity

with sales totalling $2.87 million. The Swift Current area was

second with $1.25 million. The Kindersley-Kerrobert and

Lloydminster areas followed with $1.11 and $0.56 million,

respectively.



The highest price received for a single lease parcel was

$341,913. This 227-hectare parcel is on the west side of the

Luseland Bakken Sand Pool and is approximately 35 kilometres

north-west of Kerrobert. This parcel was purchased by Wascana

Energy Inc. and Petro-Canada.



The highest price on a per hectare basis was $3,913 for a

64-hectare parcel two kilometres north of the Creelman Alida Beds

Pool, in the southeastern part of the province. The parcel was

purchased by Prairie Land & Investment Services Ltd.



The next sale of Crown petroleum and natural gas rights will be

June 9, 1998.



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For more information, contact:



Gordon Hutch

Director, Geology and Petroleum Lands Branch

Energy and Mines

Regina

Phone:(306) 787-2606