In June, the sale of petroleum and natural gas rights brought in $9.6 million in revenue for the province. Year-to-date revenue from three land sales held in 2013 is $29.3 million.
The Weyburn-Estevan area received the most bids with sales of $7.9 million. The Lloydminster area was next at $1.4 million, followed by the Kindersley-Kerrobert area at $208,370 and the Swift Current area at $139,326.
“We have seen production in the Bakken area reach 69,000 barrels per day and this is driving investment in the area,” Energy and Resources Minister Tim McMillan said. “The majority of the lands sold in the Weyburn-Estevan area are targeting Bakken-prone lands, accounting for more than 80 per cent of the sale total.”
The highest price paid for a single parcel was $1.5 million. The 64-hectare lease parcel north of Lampman, which also had the highest price on a per-hectare basis at $23,576, was acquired by Badger Pass Minerals Inc.
“While the Bakken garnered most of the attention, we are particularly interested in a cluster of parcels that sold near Avonlea,” McMillan said. “This is a dynamic industry and it is encouraging that industry is confident in the potential for new discoveries in Saskatchewan.”
The deeper Red River Formation produced oil for a short time near Avonlea in the 1990s, and several other geological horizons have been tested in the past in this area.
The province is optimistic that exploration of these lands will provide further information on production potential.
The next sale of Crown petroleum and natural gas and oil shale dispositions will be held on August 12, 2013.