ANOTHER BANNER YEAR FOR LAND SALES

Released on October 19, 2006

Continued high interest in Saskatchewan's oil and gas exploration opportunities has made 2006 another year to remember for land sale revenues.

With the results of the October sale of Crown petroleum and natural gas rights completed, the province has already collected enough revenue this year to put 2006 into the top three of all time, with one sale yet to happen.

The latest sale generated $17.3 million for the province, bringing the yearly total to $151.7 million.

"Land sale results are a good barometer of future oil and gas activity in the province," Industry and Resources Minister Eric Cline said. "This strong performance to date should give us all optimism that the people of Saskatchewan will reap significant benefits from our oil and gas sector for years to come."

The sale included 16 exploration licences that sold for $5.7 million and 212 lease parcels selling for $11.6 million.

In addition to the parcels sold for bonus bids, two special exploratory permits were awarded on the basis of work commitments. Both permits, located in the Porcupine Provincial Forest of east-central Saskatchewan, were awarded to Pioneer Land Services Ltd. for exploration work commitments totalling almost $3.5 million over the next two years on over 22 townships of oil and gas rights.

The Weyburn-Estevan area led the way again with bonus bids totalling $11.7 million. The Lloydminster area was next at $3.7 million followed by the Kindersley-Kerrobert area at $1.5 million and the Swift Current area at just over $400,000.

The highest price paid for a single parcel was over $2.6 million. Prairie Land & Investment Services Ltd. purchased this exploration licence of 35.25 sections located just south of Bengough in south-central Saskatchewan.

The highest price paid on a per-hectare basis was $5,156. Western Land Services Co. Ltd. was the successful bidder, acquiring a small 16-hectare lease parcel west of Marsden in the heavy oil area of west-central Saskatchewan for over $83,000.

The next sale of Crown petroleum and natural gas dispositions will be December 12th.

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For More Information, Contact:

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