LAND SALES MORE THAN TRIPLE LAST YEAR'S PACE

Released on June 12, 2003

Interest in Saskatchewan's oil and gas resources just keeps climbing, with land sales more than triple the figure a year ago.

June's land sale generated $33.9 million, bringing this year's total to $86 million in revenue for the province, well ahead of the $24.4 million for the same period last year.

"This year's surging sales represent a continuing vote of confidence in Saskatchewan by the oil and gas sector," Industry and Resources Minister Eric Cline said. "The strong numbers reflect a healthy industry poised to do even more exploration and development, and that's good news for our province and its wide-open future."

The June sale broke April's record sales of exploratory land with 115 exploration licences, which brought in $26.9 million or nearly 80 per cent of sale revenue. Another 190 lease parcels sold for an additional $7 million.

The Kindersley-Kerrobert area received the most bonus bid activity with sales of $14.3 million, followed closely by the Swift Current area at $14.2 million. The Lloydminster area was next at $4.2 million, with the Weyburn-Estevan area at $1.3 million.

The highest price received for a single parcel was $2,700,907. Scott Land & Lease Ltd. of Calgary purchased the exploration licence of nearly 30 sections, located 30 kilometres south of Kindersley.

The highest price on a per hectare basis was $2,017. This quarter-section parcel, located in the Lacadena Milk River Gas Pool, 34 kilometres southeast of Eston, was purchased by Husky Oil Operations Limited for $130,612.

The next sale of Crown petroleum and natural gas dispositions will be August 12th, 2003.

-30-

For More Information, Contact:

Ed Dancsok Industry and Resources Regina Phone: (306)787-2602