April Sale of Saskatchewan Land Rights Raises $3.1 Million
The April sale of Saskatchewan’s petroleum and natural gas rights raised $3.1 million for the province, bringing the calendar year’s total so far to $8.1 million.
The industry continues to pay premium prices on a per-hectare basis in Saskatchewan. For the 2016 calendar year to date, Saskatchewan’s public offering has averaged $404 per hectare, whereas Alberta has averaged $114 per hectare and British Columbia has averaged $243 per hectare.
“There is no question that when the price of oil drops significantly, the markets react and consequently raising investment capital is more difficult for the oil and gas industry,” Economy Minister Bill Boyd said. “However, Saskatchewan’s reputation as an opportunity-rich, low-cost operating environment is unchanged among conventional producers, and the province is well-positioned for the moment when prices rebound.”
Saskatchewan received the highest ranking in Canada and placed in the world’s top 10 in the Fraser Institute’s most recent annual Global Petroleum Survey of attractive jurisdictions for investment in petroleum exploration and development.
The April public offering saw the Estevan area receive the most bids at $2,642,429. The highest price paid for a single parcel was $1,104,666. STOMP Energy Ltd. acquired the 259-hectare lease located west of Estevan. This parcel was also the highest price on a per-hectare basis at $4,265 and is in an area that has proven oil production from the Bakken Formation, Three Forks Group/Torquay Formation and the Midale Beds.
The next sale of Crown petroleum and natural gas rights will be held on June 7, 2016.