The Kindersley area was the primary focus of attention for Saskatchewan’s August public offering of Crown petroleum and natural gas rights, which was held on Aug. 14 and generated $6.5 million in revenue for the province.
This public offering, the third of six scheduled throughout the year, brings the total for the 2018-19 fiscal year to date to $25 million.
A total of 79 leases representing 17,595 hectares were sold in the Kindersley area for a total of $3,741,872. The Estevan area produced revenue of $2,692,362 for 21 leases totaling 1,829 hectares, while the other two regions, Lloydminster and Swift Current, had negligible results.
“We continue to work hard to develop a positive investment climate for the petroleum industry in Saskatchewan and, as a result, the industry recognizes our royalty regime is stable and compares favourably with other jurisdictions,” said Energy and Resources Minister Bronwyn Eyre in a release. “We are committed to working closely with industry to provide as much certainty as possible for current and future investments.”
Ten parcels located north of Kisbey and totalling 971.25 hectares were purchased for $1,320,678. These parcels were purchased by Beacon Land Services Ltd. and are prospective for multiple targets including the Frobisher-Alida Beds of the Madison Group and the Bakken Formation. The highest bonus bid for a parcel was $568,649 for 162 hectares. This parcel is located northeast of Midale and was purchased by Windfall Resources Ltd.
In west central Saskatchewan, the top purchaser of acreage was Turnstone Energy Inc. who spent $1,500,810 to acquire 28 lease parcels.
The top price paid for a single lease in this area was $235,953, paid by Saturn Oil & Gas Inc. for a 259-hectare parcel situated within the Plato North Viking Sand Oil Pool, five kilometers north of Eston.
The highest dollar per hectare in this area was received from Teine Energy Ltd., who paid $1,236/hectare for a 32-hectare parcel located within the Kerrobert Viking Sand Oil Pool, 30 kilometres northwest of Kindersley.
In the Swift Current area, four leases sold with the total bonus received in the area coming in at $93,333, an average of $303/hectare. This compares to $61,090, an average of $945/hectare at the last sale.
The top purchaser of acreage in this area was Windfall Resources Ltd. who spent $70,300 to acquire three lease parcels. The top price paid for a single lease in this area was $40,100 paid by Windfall Resources Ltd. for a 64.75-hectare parcel situated within the Notukeu Upper Shaunavon Oil Pool, 25 kilometres north of the town of Shaunavon. This parcel was the highest dollar per hectare in this area at $619/hectare.
In the Lloydminster area, just one lease of 16 hectares sold. The total bonus received in the area was $10,583, an average of $653/hectare. This compares to $631,876, an average of $1,084/hectare at the last offering.
Top (and sole) purchaser of acreage in this area was West Lake Energy Corp. who acquired the one lease parcel. This parcel is situated five kilometres north of the Neilburg Mannville Sands Oil Pool, five kilometres south of Lashburn.
The next public offering of petroleum and natural gas rights will be held on Oct. 2.
