October Public Offering Shows Sustained Interest By Oil And Gas Industry
Saskatchewan’s October public offering of Crown petroleum and natural gas rights held on Tuesday, generated $2.1 million in revenue for the province, largely on the strength of continued interest in the Kindersley area.
This was the fourth of six public offerings scheduled throughout the fiscal year, which brings the 2018-19 fiscal revenue total to $27.2 million.
The energy industry in western Canada is prepared to compete for the right to explore and develop Saskatchewan’s oil and gas rights, as the province’s public offerings have averaged more than $500 on a per-hectare basis to date, compared to approximately $275 per hectare in Alberta.
“We are encouraged by the confidence shown by the oil and gas industry in Saskatchewan’s prospects,” Energy and Resources Minister Bronwyn Eyre said. “The industry continues to see Saskatchewan as a strong choice for long-term investment.”
There were 56 parcels totalling 7,068.208 hectares purchased, for a total of $2,134,898.07. The Kindersley area received the most attention in this public offering, where 24 leases totalling 5,293.318 hectares were sold for $1,295,855.70. The Estevan area brought in a total of $664,626.03 for 19 leases totalling 1,434.942 hectares.
The highest bonus bid for a parcel was $170,388.33 for 259 hectares. This parcel, located north of Eston, was purchased by Millennium Land Ltd. and is prospective for oil in the Viking Formation.
The top dollars per hectare in this offering was $3,203.36 per hectare for a 32.376-hectare parcel located southeast of Carnduff, which was purchased by Federated Co-operatives Ltd. and is prospective for oil in the Frobisher Beds of the Madison Group.
The next public offering of petroleum and natural gas rights will be held on December 4, 2018.