The total revenue from Crown land sale for petroleum and natural gas drilling rights in Saskatchewan is up by $5 million compared with the same time frame last year.
That information was contained in the latest land sale report issued by the Ministry of the Economy on Dec. 6.
The latest sale netted $14.2 million for the province, bringing the total for the fiscal year to date to $48 million, compared with $43 million at the same time last year.
This is the second-largest revenue total for a single public offering so far in the 2016-17 fiscal year.
The southeast region around Estevan and Weyburn created the most interest and triggered the most money, by far, in the latest land sale with $12.05 million being realized through the sale of the one exploratory licence up for grabs, for $4.52 million. The local region had 35 leases up for purchase as well and 34 of them were taken by the end of the day.
Stomp Energy Ltd., was the largest purchaser, spending $7.53 million to acquire the exploratory licence and two leases.
The one valuable licence acquired by Stomp was for a 1,036 hectare parcel situated five kilometres southwest of Macoun West Midale Beds Pool, which is 10 km west of Estevan.
The average price paid per hectare in this sale, across the province was just under $1,485. This compares with the average price of around $360 per hectare paid in the last public offering in October that brought in a total of $17.23 million for government coffers.
The top price for a single lease was $1.5 million paid by Stomp Energy for each of two 259 hectare parcels in the Torquay Bed Pool, 30 km west of Estevan.
“More oil wells were drilled in Saskatchewan in the first 11 months of 2016 than in Alberta, an indicator that our province is setting the pace in Canada in terms of both industry activity and policy attractiveness,” said Energy and Resources Minister, Dustin Duncan.
The public offering occurred on the same day the Fraser Institute released its 10th annual global survey on barriers to investment in oil and gas exploration and production facilities. According to this year’s survey, international petroleum industry executives and managers now rank Saskatchewan as the fourth most attractive jurisdiction for investment in the world, rising from seventh place. Saskatchewan is ranked first in Canada for this type of investment while Alberta dropped 18 spots in the world ranking to now rest at 43rd.
In the Estevan area, the average price paid per hectare was just under $2,298. The $12.7 million total compared favourably with the results from the October sale that brought in $11.245 million, an average of just over $876 per hectare.
The Lloydminster area was the second favoured region for land purchases in the Dec. 6 sale, garnering $1.41 million, for 20 of the 28 leases up for sale. That averaged out to $708.54 per hectare. This compares with the $248,698 realized in the October sale with an average price of $79.60 per hectare.
The usually active Kindersley area received less attention this time, with just 16 of the 20 leases up for sale, being purchased for a total of $610,753, an average of just over $281 per hectare. In the October sale, the Kindersley region sales amounted to $3.27 million with an average of just under $168 per hectare when several more leases were sold.
In the Swift Current area, the total bonus bids received came to just over $162,000 with just six of the nine leases being picked up at an average price of $910 per hectare. This compares with the $2.46 million realized in the October sale with an average payment of $198 per hectare.
In total 76 of the 92 leases offered, were purchased.
The next public offering of oil and gas rights will be held on Feb. 7.
