Released on December 11, 2003
Interest in Saskatchewan's oil and gas resources remains high, with 2003 as the second-highest year ever for land sales.Sales for Crown petroleum and natural gas rights reached a total of $158.7 million this year, second only to the 1994 record of $199.7 million. The December land sale generated $15.4 million in revenue for the province.
"The oil and gas industry's considerable investment in Saskatchewan should be viewed as an investment in the future of the people of this province," Industry and Resources Minister Eric Cline said. "This year's sales figure, and the future activity it foretells, is a clear indication of that link."
This month's sale included nine exploration licences that sold for $1.3 million and 312 leases that brought in $14.1 million.
In addition to the parcels sold for bonus bids, five special exploratory permits were awarded on the basis of work commitments. Four permits located in the Last Mountain Lake area, covering an area of over 300,000 hectares, were awarded with work commitment bids exceeding $9.2 million. The other permit, north of Preeceville, received a commitment of over $126,000 for work on just under 20,000 hectares.
The Kindersley-Kerrobert area received the most bonus bid activity with sales totalling $6.1 million. The Lloydminster area was next at $4.5 million, followed by the Swift Current area at $2.6 million and the Weyburn-Estevan area at $2.2 million.
Three parcels tied for the highest price at $523,242. All three lease parcels were purchased by EnCana Corporation and are all located in the Sceptre area of southwestern Saskatchewan.
The highest price on a per hectare basis was $1,677.78. Petroland Services (1986) Ltd. paid $108,636.25 for the quarter-section parcel located in the Lightning Tilston Beds Pool near Redvers in southeastern Saskatchewan.
The next sale of Crown petroleum and natural gas dispositions will be February 10th, 2004.
-30-
For More Information, Contact:
| Ed Dancsok Industry and Resources Regina Phone: (306) 787-2602 Email: edancsok@ir.gov.sk.ca |