FEBRUARY LAND SALE STRONG

Investment in Saskatchewan's oil and gas sector continues to remain high.

The February sale of Crown petroleum and natural gas rights generated $16.4 million in revenue for the province. This brings the 2002-03 fiscal year total to over $110 million, more than double the amount received in the 2001-02 fiscal year.

This month's sale is $7.2 million higher than last February's sale of $9.2 million.

"The oil and gas industry continues to consider Saskatchewan an attractive place to do business," Industry and Resources Minister Eldon Lautermilch said. "The February land sale indicates the industry's confidence in investing in our province's rich resources."

The sale included 18 exploration licences that sold for $9.7 million and 232 lease parcels that brought in $6.7 million. One special exploration permit was also awarded to General Resources Inc. on a work commitment bid of $1.6 million for an area covering over 40,000 hectares in a relatively unexplored area 30 km south of Saskatoon.

The Swift Current area received the most bonus bid activity with sales of over $5.85 million, followed closely by the Kindersley-Kerrobert area at over $5.35 million. The Lloydminster area was next at more than $3.55 million, with the Weyburn area rounding out the sale at over $1.65 million in bonus bids.

The highest price received for a single parcel was $1,270,866. Apache Canada Ltd. acquired this eight-section exploration licence in the Hatton gas field about 50 km northwest of Maple Creek. The highest price on a per-hectare basis was $4,074. A group led by Purcell Energy Ltd. purchased this 32-hectare lease parcel for $131,896 in the Griffin Frobisher Beds Pool 28 km east of Weyburn.

The next sale of Crown petroleum and natural gas dispositions will be April 8, 2003.

-30-

For More Information, Contact:

Ed Dancsok Industry and Resources Regina Phone: (306) 787-2602 Email: edancsok@ir.gov.sk.ca