Province Raises $2.4 Million in Revenue From August Oil And Gas Public Offering
The province’s August public offering of Crown petroleum and natural gas rights held Tuesday generated $2,390,943.09 in revenue.
The Estevan and Lloydminster areas were the focus of the bid activity. The Estevan area brought in $1,378,336.78 for 36 parcels encompassing 2,120.463 hectares, while the Lloydminster area brought in $1,010,663.16 for nine leases encompassing 5,762.363 hectares.
The highest bonus bid received on a parcel in this offering was $407,918.65 for a 971.258-hectare lease in the Lloydminster area. This lease was purchased by Millennium Land (111) Limited and is prospective for heavy oil in the Mannville Group.
The highest dollars per hectare received in this offering was on a 64.750-hectare lease in the Estevan area, which was purchased by Vital Energy Incorporated for $223,355.13, or $3,449.50 per hectare. This parcel of land is prospective for oil in the Frobisher Beds of the Madison Group.
This is the third of six oil and gas public offerings scheduled for the 2020-21 fiscal year, with current sales totalling $4,556,793.33.
The next oil and gas public offering is scheduled for October 6, 2020.