August 15, 2019

August Oil and Gas Public Offering Brings Fiscal Year Total to $9.5 Million

The third of six public offerings of Crown petroleum and natural gas rights in the province of Saskatchewan scheduled for 2019-20 was held Tuesday, generating $1.5 million, which brings the total revenue for the current fiscal year to just over $9.5 million.

The highest bonus bid received in this offering was $261,409.86 for a 258.254-hectare parcel west of Luseland, purchased by Millennium Land (333) Ltd., and is prospective for oil in the Mannville Group.  The highest dollars per hectare in this offering was $1,828.35 for a 129.041-hectare parcel, totalling $235,932.11.

This parcel, located east of St. Walburg, was purchased by Silver Hawk Resources Ltd. and is also prospective for oil in the Mannville Group.  Two leases in the Kindersley area consisting of 130.033 hectares received a total offer of $219,849.51. These parcels are situated southwest of Major, and were purchased by Millennium Land (444) Ltd. and Millennium Land (555) Ltd.

Saskatchewan currently averages $636.66 per hectare for the fiscal year, higher than similar public offerings held to date in Alberta and British Columbia, which average $155.63 per hectare and $87.46 per hectare respectively.

Requests for petroleum and natural gas rights in each public offering are submitted electronically from oil and gas companies to the Ministry of Energy and Resources through the Integrated Resource Information System (IRIS).

Later this year, new online training material, which was developed in conjunction with stakeholders, will be introduced.  This will help industry use IRIS as effectively as possible and align with the Government of Saskatchewan’s objective of achieving regulatory excellence.

The scheduled date for the next public offering will be October 1, 2019.