AUGUST LAND SALE BRINGS IN $21.7 MILLION

The August sale of Crown petroleum and natural gas rights has generated $21.7 million in revenue for the province. This brings land sale revenues for the 2011 calendar year to $214.9 million.

While the August revenue numbers were down from those for recent sales, Energy and Resources Minister Bill Boyd was pleased with the overall result.

"We were expecting a smaller sale after two years of intense land acquisition by our oil industry," Boyd said. "The sale numbers demonstrate continuing and sustained interest in our oil patch, but I believe what we're also seeing now is an evaluation by companies of the properties they currently have, plus a budgetary focus on coordinating drilling programs in areas that had been affected by the wet conditions this year."

"Drilling continues to be ahead of last year, with a record number of rigs working in the province. And clearly the industry has confidence in Saskatchewan, as evidenced by our province's number one investment ranking for Canada in the Fraser Institute's 2011 Global Petroleum Survey."

August's sale included 186 lease parcels that attracted the $21.7 million in bonus bids.

The Weyburn-Estevan area received the most bids with sales of $11 million. The Lloydminster area was next at $5.7 million, followed by the Swift Current area at $2.8 million and the Kindersley-Kerrobert area at $2.2 million.

The highest price for a single parcel was $1.1 million. Prairie Land & Investment Services Ltd. acquired this 518-hectare lease parcel southwest of Estevan.

The highest price on a per-hectare basis was $8,889. Highrock Energy Ltd. and Villanova Oil Corp. cost-shared a bid of $779,911 for an 88-hectare lease parcel between Manor and Redvers.

The next sale of Crown petroleum and natural gas and oil shale dispositions will be held on October 3, 2011.

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For more information, contact:

Bob Ellis
Energy and Resources
Regina
Phone: 306-787-1691
Email: robert.ellis@gov.sk.ca