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A STELLAR YEAR FOR SASKATCHEWAN LAND SALES

Released on December 14, 2006

Riding the wave of robust commodity prices, Saskatchewan is enjoying the second best calendar year ever in sales of Crown petroleum and natural gas rights. December's sale brought in $24.8 million, bringing the 2006 total to $176.5 million.

"The oil and gas industry's considerable investment in Saskatchewan should be viewed as an investment in the future of this province," Industry and Resources Minister Eric Cline said. "It is a testament to the attractiveness of our rich resources, our business climate, our technology and our skilled labour force."

This month's sale included four exploration licences that sold for $4 million and 285 lease parcels that brought in $20.8 million.

The Weyburn-Estevan area received the most bonus bid activity with sales of over $16.3 million. The Lloydminster area was next at $5.1 million, followed by the Kindersley-Kerrobert area at $1.9 million and the Swift Current area at $1.5 million.

The highest price received for a single parcel was $4.2 million. This four-section lease parcel, located in the Kisbey-Forget area of southeast Saskatchewan, was purchased by Peerless Energy Inc.

The average price per hectare was $525, bringing the yearly average to $388/hectare. The highest price on a per-hectare basis was $6,241. Rife Resources Ltd. paid over $101,000 for a single legal subdivision in the Lashburn area of west-central Saskatchewan.

The next sale of Crown petroleum and natural gas dispositions will be Monday, February 5, 2007.

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For More Information, Contact:

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

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