The December sale of petroleum and natural gas rights brought in $13.9 million in revenue, with the average price paid being $656/hectare.
Calendar year total revenue from the six land sales held in 2013 is $67.4 million.
“Saskatchewan is now ranked as the number one jurisdiction in Canada for oil and gas investment policies according Fraser Institute’s annual Global Petroleum Survey,” Energy and Resources Minister Tim McMillan said. “This vote of confidence from the industry shows that our government is taking the right steps to ensure Saskatchewan remains competitive not only in Canada but globally as well.”
Programs such as the Process Renewal and Infrastructure Management Enhancement (PRIME) program — a multi-year, multi-project initiative that is modernizing the ministry’s oil and gas business processes and computer systems — send a strong signal to industry that the province intends to remain one of the best places to invest. Last year, PRIME successfully integrated Saskatchewan’s volumetric reporting into Petrinex, Canada’s petroleum information network, and has turned its attention to renewing processes and systems related to wells, facilities and petroleum tenure, which includes the land sale and instrument registry.
The December sale saw the Weyburn-Estevan area receive the most bids with sales of $7.5 million. The Lloydminster area was next at $5.1 million, followed by the Kindersley-Kerrobert area at $1.2 million and the Swift Current area at $122,697.
The highest price paid for a single parcel was $908,448. Plunkett Resources Ltd. acquired the 259-hectare lease east of Estevan. The highest price on a per-hectare basis was $6,189. Scott Land & Lease Ltd. bid $801,459 for a 129.5-hectare lease south of Maidstone.
Saskatchewan remains on track to beat last year’s record in crude oil production.
The next sale of Crown petroleum and natural gas dispositions will be held on February 3, 2014.