Saskatchewan oil land sales hit $6M

There were 31 leases acquired in the June offering, totalling 3,887.3 hectares

Western Investor
July 18, 2019

oil land

The latest public offering of Crown petroleum and natural gas rights on June 4 generated more than $6 million in revenue for the province of Saskatchewan, bringing the current fiscal year’s total to approximately $8 million thus far in 2019.

There were 31 leases acquired in the June offering, totalling 3,887.3 hectares. The highest offering was $10,111 per hectare for a 32.2-hectare parcel, acquired by Synergy Land Services Ltd.

This parcel is located east of Lampman and has potential for oil in the Midale Beds and Frobisher Beds of the Madison Group.

The average price per hectare for the June offering was $1,654, the highest per-hectare price for an offering since August 2014.

Six leases posted north of St. Walburg in the Lloydminster area were acquired for a total of $2,881,280. 

Two leases in the Kindersley area consisting of approximately 648 hectares were acquired for $1.41 million. Millennium Land Ltd. acquired one lease for $1.08 million and was the successful bidder for the other lease at more than $331,000.

“In the competition for oil and gas investment dollars, Saskatchewan development rights continue to illustrate there are solid opportunities in this province,” Energy and Resources Minister Bronwyn Eyre said.  “In an industry that places a high value on long-term, cost-effective investments, we are demonstrating that pursuing oil and gas development in Saskatchewan is good for business.”

The scheduled date for the next public offering will be August 13. 

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