Oil and Gas Public Offering for June Raises $6 Million
The latest public offering of Crown petroleum and natural gas rights held Tuesday, June 4, generated more than $6 million in revenue for the province of Saskatchewan, bringing the current fiscal year’s total to approximately $8 million, following two of six scheduled offerings.
There were 31 leases acquired in the June offering, totalling 3,887.329 hectares. The highest dollars per hectare offering was $10,111.95 per hectare for a 32.203-hectare parcel, acquired by Synergy Land Services Ltd.
This parcel is located east of Lampman, in southeast Saskatchewan and has potential for oil in the Midale Beds and Frobisher Beds of the Madison Group.
The average price per hectare for the June offering was $1,654 per hectare, the highest per hectare for an offering since August 2014.
“In the competition for oil and gas investment dollars, Saskatchewan development rights continue to illustrate there are solid opportunities in this province,” Energy and Resources Minister Bronwyn Eyre said. “In an industry that places a high value on long-term, cost-effective investments, we are demonstrating that pursuing oil and gas development in Saskatchewan is good for business when supported by sound incentives and clear policies.”
Six leases posted north of St. Walburg in the Lloydminster area were acquired for a total of $2,881,280.38. These parcels are prospective for heavy oil in the Mannville Group and were acquired by Millennium Land (111) Ltd., Millennium Land (333) Ltd., Millennium Land (555) Ltd., BASM Land & Resources Ltd., Rockwell Resources Inc. and Prairie Land & Investment Services Ltd.
Two leases in the Kindersley area consisting of 648.026 hectares were acquired for $1,418,165.85 and are prospective for oil in the Mannville Group. Millennium Land (555) Ltd. acquired one lease for $1,086,327.18 and Millennium Land (111) Ltd. was the successful bidder for the other lease at $331,838.67.
The scheduled date for the next public offering will be August 13, 2019.