Estevan area draws the most interest for April's oil and gas public offering

Saskatchewan's public offering of Crown petroleum and natural gas rights, held April 6, generated $1,925,874 in revenue for the province.

This is the first of six oil and gas public offerings for the 2021-22 fiscal year, according to the Ministry of Energy and Resources.

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There were 70 leases totalling 19,425 hectare posted and 38 leases purchased, totalling 7,608 hectares. The provincial average was $253 per hectare.

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 (or $627 per hectare) for a lease in the Estevan area. This lease, totalling 518 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, or $3,406 per hectare, for this parcel that is prospective for oil, also in the Bakken Formation. Crescent Point was the most active bidder in this offering, picking up eight leases in the Estevan area totalling 2,137 hectares 22 kilometres north of Kisbey for $593,661.

In total, the Estevan area brought in $1,631,515 for 23 parcels encompassing 4,079 hectares. There had been 45 parcels posted totalling 13,112 hectares.

The Lloydminster area had four leases posted totalling 486 hectares. Three of those leases were purchased for a total of $64,574 for 421 hectares, an average of $153 per hectare. The highest bonus bid received on a parcel in this area was $41,380 for a lease totaling 259 hectares.

This lease was awarded to Husky Oil Operations Ltd. and located 17 kilometres east of Maidstone and within the Rush Lake Mannville Oil Pool. The highest dollars per hectare received on a parcel in this area was $318 per hectare or a total of $20,583. Lacadena Land Company Inc. was awarded this parcel that is located six kilometres west of Cut Knife and southeast of the Baldwinton Sparky Oil Pool.

The Swift Current area had just one lease posted, and it sold for $33,092 for 259 hectares. Potts Petroleum Inc. picked up the lone parcel posted in this area for $127.77 per hectare. This lease is located 12 kilometres southwest of Success.

The scheduled date for the next public offering is June 1.

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