December Oil And Gas Public Offering Brings 2019 Calendar Year Total To $25 Million
Saskatchewan’s December oil and gas public offering held on Tuesday generated $3.4 million in revenue for the province. This brings the 2019-20 fiscal year total to $15.2 million with one sale remaining, and brings the final 2019 calendar year total to $25.4 million.
The Estevan area accounted for $1,462,673.69 for 24 leases totalling 3,014.559 hectares, while the Kindersley area received $1,346,468.25 for 21 leases and one exploration licence totalling 5,037.032 hectares. One lease in the Estevan area consisting of 72.549 hectares received the highest dollars per hectare offer in this offering at $3,889.19/hectare.
Cougar Creek Land Ltd. was the successful bidder on this parcel, which is situated east of Carnduff and is prospective for oil in the Frobisher Beds of the Madison Group.
The highest bonus bid received in this offering was $485,900.03 for a 1,558.121 hectare exploration licence west of Kerrobert. This parcel was purchased by Novus Energy Inc. and is prospective for oil in the Viking Formation and the Mannville Group.
Saskatchewan’s Growth Plan: The Next Decade of Growth 2020-2030 includes the goal of increasing oil production to 600,000 barrels per day by 2030. The province has already worked diligently to create what is one of the most competitive business environments in North America.
A recent report on profitability in the oil sector, the 2019 Scotiabank Playbook, ranked Saskatchewan as having two of the top 10 oil or gas plays in North America and a total of seven plays ranked among those in the top 35.
The scheduled date for the next public offering is February 4, 2020, which will be the final sale of the 2019-20 fiscal year.