April Oil and Gas Public Offering Nets $15.4 Million

Released on April 4, 2024

The Government of Saskatchewan's Crown petroleum and natural gas public offering, held on Tuesday, April 2, 2024, has raised $15,454,748.02 in revenue for the province, with the Estevan area generating the most cashflow.

Of the 147 parcels posted for this sale, 123 parcels received acceptable bids, which covered 16,065.020 hectares. Six parcels received bids that were rejected as unacceptable after a technical review, and no bids were submitted for the remaining 18 parcels. 

The Estevan area brought in the most revenue, $13,795,439.18 for 84 leases and two exploration licenses covering 9,797.237 hectares.

Following that, the Lloydminster area brought in $1,425,234.16, generated from bids on 32 leases totaling 4,841.643 hectares.

Meanwhile bids in the Kindersley area generated $234,074.68 in revenue.

Hummingbird Energy Inc. made the highest bonus bid and highest dollars-per-hectare bid in this offering - $2,200,000 for a 193.711-hectare lease prospective for oil in the Frobisher Beds in the Estevan area, northeast of Midale. The bid works out to $11,357.12 per hectare.

The two exploration licenses in this offering were awarded to Crescent Point Energy Corp. One license totaling 1,416.372 hectares received a bid of $2,114,416.78, or $1,492.84 per hectare. The second license totaling 675.971 hectares received a bid of $1,009,116.55, also $1,492.84 per hectare. 

These exploration licenses are located in the Estevan area, northeast of Lampman, and are prospective for oil in the Bakken Formation.

This is the first of six scheduled public offerings this fiscal year. The first oil and gas public offering last fiscal year generated $11,113,459.75 in revenue. 

The next scheduled date for a public offering in Saskatchewan is June 4, 2024.

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