APRIL LAND SALE HIGHEST IN SIX YEARS

Released on April 10, 2003

Interest in Saskatchewan's oil and gas resources continues to climb, with land sales at a six-year high.

The April sale of Crown petroleum and natural gas rights generated $35.7 million in revenue for the province.

"The oil and gas industry continues to invest in Saskatchewan's future, and to build on last year's banner sales," Saskatchewan Industry and Resources Minister Eric Cline said. "In addition to this month's strong land sale, drilling for the first quarter of this year was up about 80 per cent over the first quarter of 2002."

The April land sale included a record 82 exploration licences that sold for $21.9 million and 335 lease parcels for $13.8 million. Bonus bids from exploration licences accounted for 61 per cent of the sale, well above the five-year average of 25 per cent. There were also two special exploration permits awarded near Preeceville and Moose Jaw on work commitment bids totalling $382,900.

The Lloydminster area received the most bonus bid activity with sales over $18 million. The Swift Current area was next at $10.8 million, followed by the Kindersley-Kerrobert area at $4.4 million and the Estevan-Weyburn area at $2.4 million.

The highest price received for a single parcel was $1,010,641. Brio Energy Corporation acquired the exploration licence for a 23¼ section parcel near Wilkie.

The highest price on a per hectare basis was $4,172. This three-quarter section lease parcel, located 12 kilometres northwest of Minton in south-central Saskatchewan, was purchased by Lane Land Services Ltd. for $810,438.

The next sale of Crown petroleum and natural gas dispositions will be June 10th, 2003.

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For More Information, Contact:

Ed Dancsok Industry and Resources Regina Phone: (306)787-2602 Email: edancsok@ir.gov.sk.ca