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OIL AND GAS LAND SALES CONTINUE TO OUTPACE LAST YEAR

Released on October 8, 2003

Interest in Saskatchewan's oil and gas resources continues to be red-hot.

The October sale of Crown petroleum and natural gas rights generated $36.8 million in revenue for the province, the largest amount in nine years for a land sale.

With these latest numbers, $127 million in revenue has been generated from land sales this fiscal year, well ahead of the $77 million collected for the corresponding period last year.

"These sale numbers are the latest indication that the oil and gas industry views Saskatchewan as a great place in which to do business," Industry and Resources Minister Eric Cline said. "The climate is right for even more exploration and development by our top industry, which translates into an even stronger economy for our province."

October's sale netted $18.2 million on the sale of 44 exploration licences and $18.6 million for 349 lease parcels. One special exploratory permit was awarded to Burlington Resources Canada Ltd., on a work commitment bid of $3.8 million, for a large area of nearly 20 townships west of Assiniboia.

The Swift Current area received the most bonus bid activity with sales of $21.7 million. The Kindersley-Kerrobert area was next at $8.0 million, followed by the Lloydminster area at $6.0 million and the Weyburn-Estevan area at $1.1 million.

The highest price received for a single parcel was $2,542,365. Prairie Land & Investment Services Ltd. of Regina purchased this 35-section exploration licence, located near Consul in southwest Saskatchewan.

The highest price on a per-hectare basis was $2,415. Bristol Land & Lease Ltd. of Calgary purchased this 16-hectare lease parcel, located 20 km east of Lloydminster, for $39,101.

The next sale of Crown petroleum and natural gas dispositions will be December 9th, 2003.

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For More Information, Contact:

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

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