December 07, 2018

December Public Offering Generates Largest Revenue Since June 2017

A total of $20.1 million in revenue was raised in Saskatchewan’s December public offering of Crown petroleum and natural gas rights held this week, which featured significant attention in the Wilkie and St. Walburg areas.

After the fifth of six public offerings scheduled throughout the fiscal year, the 2018-19 revenue total now stands at $47.3 million with this week’s offering, generating the largest revenue total for a single sale since June 2017.  Results were briefly delayed due to the major power outage that affected much of Saskatchewan on Tuesday.  The sale process was temporarily suspended, then concluded the following day, in order to provide a secure bidding opportunity for industry.

“Saskatchewan continues to be an attractive destination for investment by the oil and gas industry,” Energy and Resources Minister Bronwyn Eyre said.  “Our competitive policies and incentives, designed in collaboration with industry, encourage sustainable activity, job growth, and good resource management.”

Eight exploration licences totalling 17,899.930 hectares were purchased for a total of $15,314,917.28.  Three exploration licences surrounding the Town of Wilkie were purchased for $13,533,909.29; two were purchased by BASM Land & Resources Ltd.  One was also purchased by NRG LandSolutions Inc.

The highest bonus bid for a parcel was $9,126,103.28 for 5,568.500 hectares.  This parcel is located east of Wilkie and was purchased by BASM Land & Resources Ltd.  The top dollars per hectare in this public offering was $5,036.780/hectare for a 64.750-hectare parcel located north of St. Walburg.  This parcel was purchased by BASM Land & Resources Ltd. and is prospective for oil in the Mannville Group.

The scheduled date for the next and final offering for the fiscal year will be February 5, 2019.