NEW SWIFT CURRENT PLAY DRIVES JUNE CROWN MINERAL RIGHTS SALE

Released on June 11, 1998

Energy and Mines Minister Eldon Lautermilch today announced that the

June sale of Crown petroleum and natural gas rights realized

$17.45 million in revenue for the province, bringing the calendar year

total to $31.6 million.



Promising drilling results in a relatively unexplored area near Swift

Current drove industry interest in utilizing a new type of disposition called "exploration licences" thereby creating the major part of the bonus bid revenue. Seventeen exploration licences, all located approximately 30 kilometres south of Swift Current, were sold for $13.38 million; another 117 standard leases sold throughout the

province brought in an additional $4.07 million.



"The new Swift Current play is promising and I'm pleased with the high

degree of interest shown by industry in developing it through the new

exploration licences," Lautermilch said. "These dispositions not only

contribute significant revenue to the province but assure exploratory

drilling in the relatively near future."



The Swift Current region led the province for revenues raised at this

sale with bonus bids totalling $14.9 million. The Weyburn-Estevan

area was second with $2.3 million. The Kindersley-Kerrobert and

Lloydminster areas followed with $144,173 and $81,723 respectively.



The highest price received for a single lease parcel was

$633,885.95. This 1,038-hectare parcel is approximately

25 kilometres southeast of Swift Current and is within the area

covered by the Exploration Licences. It was purchased by Silver

Hawk Resources Ltd.



The highest price paid on a per hectare basis was $2,807.

Maverick Land Consultants (87) Inc. paid $181,753 for a

64.75 hectare parcel located approximately 10 kilometres

northwest of Fillmore in the southeastern part of the province.



The June sale marked the first time that the new exploration

licence was offered, replacing the older "exploration permit" and

"drilling reservation". Although similar to drilling

reservations in that it requires the holder of the exploration

licence to drill a well (or wells) to earn leases, the new

licence allows up to 36 sections to be posted and is for a two to

four year term depending on the location within the province. In

addition, the process is greatly simplified from the old permit

procedure and allows companies to go straight to production,

making the new exploration licences very similar to the

"petroleum and natural gas licences" offered in Alberta.



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

August 11, 1998.

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For more information, contact:



Gordon Hutch, Director

Geology and Petroleum Lands Branch

Saskatchewan Energy and Mines

Phone: (306) 787-2606