April Oil and Gas Public Offering Raises $1.5 Million
The April public offering of Saskatchewan’s Crown petroleum and natural gas rights held on April 9, the first offering of the 2019-20 fiscal year, raised a total of $1.5 million for the province and was focused on the Swift Current area.
The public offering on April 9 saw 38 leases purchased, totalling 5,595.875 hectares. The Swift Current area received the most attention, with 14 leases, totalling 2,106.288 hectares, being sold for $914,349.97. On both a fiscal and calendar year basis, Saskatchewan continues to post the highest average-per-hectare revenues among the western provinces—a clear indicator of Saskatchewan’s continuing competitiveness and status as a jurisdiction of choice for the industry.
“Industry sources frequently identify Saskatchewan as having a very attractive operating environment and fiscal regime,” Energy and Resources Minister Bronwyn Eyre said. “We are also home to some of the best and most cost-effective conventional oil and gas development opportunities you will find anywhere. It’s not surprising that when we talk to audiences around the world about the investment opportunities in Saskatchewan, we are often talking about oil and gas.”
Three leases posted in the Gull Lake area and prospective for oil in the Upper Shaunavon area were purchased for a total of $527,384.24. Millennium Land (444) Ltd., Millennium Land (555) Ltd. and Canada West Land Services Ltd. each purchased one of these leases.
The highest bonus bid was $221,322.02 for 129.360 hectares located south of Gull Lake. This parcel, which also received the highest dollars per hectare at $1,710.90 per hectare, was purchased by Millennium Land (444) Ltd. which was the top bidder in this public offering, picking up four leases totalling 912.976 hectares for $416,196.81.
The scheduled date for the next public offering will be June 4, 2019.