Province Raises $1.9 Million in Revenue from April Oil & Gas Public Offering
Saskatchewan's public offering of Crown petroleum and natural gas rights held Tuesday, April 6, 2021, generated $1,925,873.51 in revenue for the province.
This is the first of six oil and gas public offerings for the 2021-22 fiscal year.
The Estevan area was the major focus for bid activity, with leases within the region receiving both the highest bonus bid for a parcel of land as well as the highest dollars per hectare on a lease.
The highest bonus bid received on a parcel in this offering was $324,786.00 (or $627.00 per hectare) for a lease in the Estevan area. This lease totalling 518.000 hectares was awarded to Cougar Creek Land Ltd. and is prospective for oil in the Bakken Formation.
The highest dollars per hectare received in this offering was for a 64.8-hectare lease in the Estevan area by Crescent Point Energy Corp. They bid $220,554.04, or $3,406.24 per hectare, for this parcel that is prospective for oil also in the Bakken Formation.
In total, the Estevan area brought in $1,631,515.03 for 23 parcels encompassing 4,079.254 hectares, while the Kindersley area brought in $196,691.89 for 11 leases encompassing 2,489.006 hectares. Lloydminster and Swift Current were the other two areas each bringing in $64,574.16 for 420.878 hectares, and $33,092.43 for 259.000 hectares, respectively.
The scheduled date for the next public offering is June 1, 2021.