Southeast Saskatchewan was the focus of Tuesday’s public offering of Crown petroleum and natural gas rights in the province, which generated $2.2 million dollars and brought the 2019-20 fiscal year total to more than $11 million.
Saskatchewan currently averages $529.63 per hectare for the fiscal year, higher than Alberta, which averaged $149.66 per hectare respectively.
The Estevan area brought in $1,608,244.49 for 35 leases totalling 4,917.960 hectares. Four leases, comprising 516.414 hectares northwest of Lampman, received $469,580.00 in bonus bids; the highest bonus bid received in this offering was $240,480.00 for a 129.274-hectare parcel in that area.
These parcels are prospective for oil in the Midale beds of the Madison Group and oil in the Bakken Formation. The successful bidder on these parcels was Midale Petroleums Ltd.
Synergy Land Services Ltd. was the successful bidder on two leases in the Kindersley area consisting of 516.658 hectares, which received a total offer of $234,369.81. These parcels are situated northwest of Kerrobert and are prospective for oil in the Viking Formation.
The global oil and gas industry recognizes that Saskatchewan has a favourable and low-risk investment climate relative to other jurisdictions in Canada and elsewhere. The Fraser Institute’s annual international survey of petroleum executives for 2018 ranked Saskatchewan second among jurisdictions in Canada for oil and gas investment attractiveness.
The scheduled date for the next public offering will is Dec. 3.