OCTOBER LAND SALE PRODUCES OVER $16 MILLION

The latest numbers from the sale of Crown petroleum and natural gas rights show continuing strong interest in Saskatchewan's energy resources.

October's land sale netted the province $16.3 million in revenue, up considerably from the $10.5 million generated in the August sale. Total revenue for the calendar year from land sales now sits at $63.5 million.

"Industry's interest in acquiring oil and gas properties reflects both its confidence in our economic climate and the sustained improvement in commodity prices," Industry and Resources Minister Eric Cline said. "Land sale interest is generally a good barometer for future drilling activity, so this sale was very encouraging."

The sale included four exploration licences that sold for over $900,000 and 332 lease parcels that brought in $15.4 million.

The Weyburn-Estevan area received the most bonus bid activity with sales totalling $6 million. The Kindersley-Kerrobert area was next at $4.7 million. The Lloydminster and Swift Current areas followed with $3.8 million and $1.8 million respectively.

The highest price received for a single parcel was $798,720.00. This four-section lease parcel is located just 7 km southwest of Estevan. It was purchased by Prairie Land & Investment Services Ltd.

The highest price on a per-hectare basis was $4,330. Scott Land & Lease Ltd. paid over $70,000 for a small, 16-hectare lease parcel located in the Epping Oil Pool, about 30 km south of Lloydminster.

The next sale of Crown petroleum and natural gas dispositions will be December 7th, 2004.

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For More Information, Contact:

Bruce Wilson Industry and Resources Regina Phone: (306) 787-2591