The first sale of Crown petroleum and natural gas rights for 2013 generated $11.9 million in revenue for the province, bringing final land sale revenues for the 2012-13 fiscal year to $88.9 million.
February’s sale included 104 lease parcels that brought in $11.8 million in bonus bids and two petroleum and natural gas exploration licences that sold for $125,000.
While investment in the Bakken remains strong, industry continues to identify opportunities province-wide. The Lloydminster area received the most bids with sales of $5.9 million. The Weyburn-Estevan area was next at $3.7 million, followed by the Swift Current area at $1.3 million and the Kindersley-Kerrobert area at $1.0 million.
“Land sale revenues remain steady as producers show confidence in the oil and gas markets and the competitive environment found in Saskatchewan,” Minister responsible for Energy and Resources Tim McMillan said. “It is encouraging that in this climate of record production industry continues to identify new prospects and compete in our land sale, often fiercely, for the right to explore these prospects.”
The highest price for a single parcel was $967,555. Ranger Land Services Ltd. acquired this 210-hectare lease north of Lloydminster. The highest price on a per-hectare basis was $10,265. Plunkett Resources Ltd. bid $332,277 for a 32-hectare lease parcel south of Weyburn.
The next sale of Crown petroleum and natural gas dispositions will be held on April 8, 2013.