REGINA — The Government of Saskatchewan's third Crown oil and natural gas public offering of the fiscal year, held Aug. 11, generated $4,528,771 in revenue.
According to a government news release issued Aug. 14, bids in the northwest area earned the highest amount, followed closely by the southeast and west-central regions.
Companies bid on 41 parcels across the three regions, the news release said, for a total area covering 9,905 hectares. The parcels included 37 leases and four exploration licences. No parcels were posted in the southwest region.
The news release noted bidding in the northwest area fetched $1,643,563 in revenue, followed by $1,475,748 in the southeast and $1,409,458 in the west-central region.
Synergy Land Services Ltd. made the highest bid for an exploration licence at $1,015,635, or $434 per hectare, for a 2,336-hectare property south of Eatonia in the west-central area.
Saturn Oil & Gas Inc. made the highest bid for a lease at $318,934, or $706 per hectare, for a 451-hectare site west of Bengough in the southeast region.
The government noted that of the approximately $4.5 million raised in this offering, just over half of the revenue came from bidding on the four exploration licences. A total of $2,296,824 was raised on two licences each in the Lloydminster and Kindersley areas.
Leases are offered with five-year terms and are issued to drill for and produce oil or natural gas. Exploration licences have terms of two to five years and are issued in less developed areas for exploration and production.
Several factors affect public offering activity, the news release said, including oil and gas prices, land availability, geological and technological constraints, and various market conditions.
The next offering is scheduled for Oct. 6.
