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LAND SALE SECOND-HIGHEST YEAR EVER

Released on February 12, 2004

Saskatchewans oil and gas land sale revenues continue to grow, marking the second highest year ever for land sales.

The February sale of Crown petroleum and natural gas rights generated $16.8 million in revenue for the province. This brings the 2003-04 fiscal year total to over $159 million, second only to the 1994-95 fiscal year record of $202 million.

"This strong year in land sales coincides with record drilling activities," Industry and Resources Minister Eric Cline said. "Growing interest in the acquisition of oil and gas rights bodes well for continued strength in drilling in the energy sector.

The sale included five exploration licences that sold for $6.8 million and 279 lease parcels that brought in $10 million.

The Swift Current area received the most activity with sales of $7.1 million. The Lloydminster area was next at $5.8 million, followed by the Kindersley-Kerrobert area at $2.7 million and the Weyburn-Estevan area at $1.2 million.

The highest price received for a single parcel was $3,671,069. Prairie Land & Investment Services Ltd. of Regina purchased this 26-section exploration licence located in and around the Senate Second White Specks Gas Pool in the extreme southwest corner of the province.

The highest price on a per-hectare basis was $1,604. Again, Prairie Land & Investment Services Ltd. was the successful bidder, acquiring a one-quarter section parcel near Carnduff in the extreme southeast corner of the province for almost $104,000.

The next sale of Crown petroleum and natural gas dispositions will be April 13th, 2004.

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For More Information, Contact:

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

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