REGINA – The Government of Saskatchewan’s Crown oil and natural gas public offering, held on Feb. 4, raised $3,039,589 for the province, with the southeast area generating approximately 90 per cent of the revenue.
Twenty-nine parcels were put up for sale in this offering, and 25 received acceptable bids, covering an area of 2,753.836 hectares. The average sale price was $1,103.77 per hectare.
The southeast brought in $2,747,969 for 16 leases totalling 1,684.452 hectares, or $1,631.37 per hectare. Eighteen leases were available.
The highest bonus bid and dollars per hectare received on a parcel in this offering – both in the southeast and across the province – was $997,962, an average of $6,158.55 per hectare. This 162.045-hectare lease was awarded to Millennium Lands (111) Ltd. and is located 13 kilometres northeast of Midale, within the Midale Central Frobisher Beds Oil Pool.
Also in the southeast, Synergy Land Services Ltd. was awarded a 710.727-hectare lease after bidding $503,031.25, an average of $707.77 per hectare. This lease is located nine kilometres southwest of Gainsborough, adjacent to the Gainsborough West Frobisher Beds Oil Pool.
Two leases were awarded to Baserado Resources Ltd. & Hummingbird Energy Ltd., who submitted joint bids on each lease. One lease, totalling 64.580 hectares, is located four kilometres south of Carnduff and received a bid of $325,000, an average of $5,032.52 per hectare.
The second lease, totalling 64.666 hectares, is located four kilometres southwest of Carnduff and also received a bid of $325,000, an average of $5,025.83 per hectare. Both leases are near the boundary of the Carnduff Midale Beds Oil Pool.
The Lloydminster area generated $156,195 in bonus bids. Eight of the 10 leases available were gobbled up, encompassing 808.450 hectares. The average sale price was $193.20 per hectare.
The highest bonus bid and the highest dollars per hectare received on a parcel in this area is $53,888, an average of $1,119.17 per hectare. This 48.150-hectare lease was awarded to Bounty Developments Ltd. and is located 18 kilometres southwest of Turtleford, within the Westhazel Mannville Sands Oil Pool.
The Kindersley area fetched $135,424. The one lease that was available was sold; it covered 260.934 hectares, which amounts to $519 per hectare.
This lease was awarded to Millennium Land (111) Ltd. and is located 26 kilometres northwest of Major, between the Court West Bakken Sand Oil Pool and the Cactus Lake Basal Mannville-Bakken Sand Oil Pool.
This is the sixth and final oil and gas public offering for the 2024-25 fiscal year, over which time the Government of Saskatchewan has raised $51,814,614.
According to a government news release, several factors affect public offering activity, including changes in oil and gas prices, land availability, geological and technological constraints and various market conditions.