Released on June 10, 2010
The June sale of petroleum and natural gas rights generated $46.2 million in revenue, making it the second-highest June land sale on record. Land sale revenue for the 2010 calendar year now stands at $275.8 million, well ahead of the $36 million at the same time in 2009.
While the June sale historically has been one of the quieter sales for the year, the 2010 edition more than doubled the amount raised in June 2009.
"Saskatchewan land sales continue to raise interest," Energy and Resources Minister Bill Boyd said. "It looks like the June sale picked up where the April sale left off. Not only was this the second largest June sale ever, the average price per hectare was more than $1,200. Industry continues to place a premium on Saskatchewan oil and gas properties."
Boyd noted Bakken-prone lands in the southeast once again played a prominent role in the sale, accounting for nearly three-quarters of the total revenue.
"This remains our poster boy, although there was interest in other areas as well," Boyd said. "The overall picture looks promising. We're already comfortably ahead of last year's pace on land sale revenue."
June's sale included 6 petroleum and natural gas exploration licences that sold for $21.4 million and 172 lease parcels that attracted $24.8 million in bonus bids.
The Weyburn-Estevan area received the most bids with sales of $34.5 million. The Lloydminster area was next at $5.8 million, followed by the Swift Current area at $3.2 million and the Kindersley-Kerrobert area at $2.7 million.
The highest price for a single parcel was $10.4 million, paid by Scott Land & Lease Ltd. for a 1,912-hectare exploration licence near Corning in southeast Saskatchewan.
The highest price on a per-hectare basis was $62,222. Mammoth Land Services Ltd. bid $4 million for a 65-hectare lease parcel near Stoughton.
The $1,200 per hectare from the June sale once again compares favourably to both Alberta and British Columbia. The most recent sales there averaged $800 per hectare and $1,700 per hectare respectively.
The next sale of Crown petroleum and natural gas dispositions will be held on August 9, 2010.
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For more information, contact:
Bob Ellis
Energy and Resources
Regina
Phone: 306-787-1691
Email: robert.ellis@gov.sk.ca