Regina – Saskatchewan’s December oil and gas public offering held on Dec. 3 generated $3.4 million in revenue for the province. This brings the 2019-20 fiscal year total to $15.2 million with one sale remaining, and brings the final 2019 calendar year total to $25.4 million.
The Estevan area accounted for $1,462,674 for 24 leases totalling 3,015 hectares, while the Kindersley area received $1,346,468 for 21 leases and one exploration licence totalling 5,037 hectares. One lease in the Estevan area consisting of 72.5 hectares received the highest dollars per hectare offer in this offering at $3,889/hectare.
Cougar Creek Land Ltd. was the successful bidder on this parcel, which is situated east of Carnduff and is prospective for oil in the Frobisher Beds of the Madison Group.
The highest bonus bid received in this offering was $485,900 for a 1,558 hectare exploration licence west of Kerrobert. This parcel was purchased by Novus Energy Inc. and is prospective for oil in the Viking Formation and the Mannville Group.
In the Lloydminster area, the highest bonus bid received was for a parcel situated between the Mervin East Waseca Oil Pool and the Turtleford North Colony Oil Pool, 16 kilometres east of Turtleford. This 259 hectare lease was purchased by Millennium Land (444) Ltd. for $77,675.
The Soo Line Resource Group Ltd. bid the highest amount per hectare in this area to purchase three leases. These 16.2 hectare leases situated in the Dulwich Sparky Oil Pool, eight kilometres southeast of Lloydminster, were purchased for $2,118 per hectare.
Millennium Land (444) Ltd. was the top bidder in this area picking up 4 leases totalling 1,506 hectares for $174,256.
The Kindersley-Kerrobert area received in the area was $1,346,468, an average of $267/hectare. This compares to $431,525, an average of $238/hectare at the last offering.
The top bidder in this area was Millennium Land (222) Ltd. who spent $145,780 to acquire two leases totalling 196 hectares.
The highest bonus bid received in this area was the aforementioned $485,900 for an exploration licence totalling 1,558 hectares, purchased by Novus Energy Inc.
The top dollars per hectare received in this area was $1,811/hectare for a 66hectare lease. Millennium Land (555) Ltd. purchased this parcel that is situated near the Hoosier North Viking Oil Pool, 12 kilometres southwest of Major.
In the Estevan-Weyburn area, the total bonus received was $1,462,674, an average of $485/hectare. This compares to $1,608,244, an average of $327/hectare at the last offering.
The highest bonus bid and top dollars per hectare received in this area was for the aforementioneda parcel situated near the Gainsborough West Frobisher Beds Oil Pool, 16 kilometres east of Carnduff. This 72.5 hectare lease was purchased by Cougar Creek Land Ltd. for $282,157 or $3,889/hectare.
Prairie Land Investment Services Ltd. was the top bidder in this area picking up seven leases totalling 422.037 hectares for $341,628.
There were no leases purchased in the Swift Current area. One lease was posted, but not sold.
The Ministry of Energy and Resources noted it its press release that Saskatchewan’s Growth Plan: The Next Decade of Growth 2020-2030 includes the goal of increasing oil production to 600,000 barrels per day by 2030. “The province has already worked diligently to create what is one of the most competitive business environments in North America,” said the release.
A recent report on profitability in the oil sector, the 2019 Scotiabank Playbook, ranked Saskatchewan as having two of the top 10 oil or gas plays in North America and a total of seven plays ranked among those in the top 35.
The scheduled date for the next public offering is February 4, 2020, which will be the final sale of the 2019-20 fiscal year.