LAND SALES CONTINUE STRONG PACE

The province's sales of Crown petroleum and natural gas rights appear to be headed for another banner year.

June's land sale generated $19.6 million for the province, bringing the calendar year total to $63.6 million.

"A number of new Bakken Formation plays in southeast Saskatchewan seem to be driving the recent influx of land acquisition investment," Industry and Resources Minister Eric Cline said. "I'm pleased with the high degree of interest shown by industry and the significant revenue they have contributed to the province."

The June sale included nine exploration licences that sold for over $1.8 million and 315 lease parcels selling for $17.8 million. Average prices per hectare were $254 which is well above the five-year average of $180 per hectare.

The Weyburn-Estevan area led the way by far in bonus bid revenue with sales totalling nearly $14 million. The Swift Current area was next at $2.7 million, followed by the Lloydminster area at $2 million and the Kindersley-Kerrobert area at just over $900,000.

The highest price received on a per-hectare basis was $3,268. Bulldog Energy Inc. purchased this 97-hectare lease parcel, located near Manor in southeast Saskatchewan for $317,365.

The highest amount received for a single parcel was over $1.8 million. This four-section parcel, located in and around the town of Stoughton in southeast Saskatchewan, was purchased by Prairie Land & Investment Services Ltd.

The next sale of Crown petroleum and natural gas dispositions will be August 16th, 2005.

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For More Information, Contact:

Ed Dancsok Industry and Resources Regina Phone: (306) 787-2602