CROWN LAND SALES START NEW YEAR STRONG

The first sale of Crown petroleum and natural gas rights in 2007 is building on where a robust 2006 left off.

February’s sale generated more than $28.5 million in revenue for the province.  The sale also brought the final 2006-07 fiscal year total to $169 million - the second best year on record.

“The investment climate that has been established for our oil and gas industry, combined with excellent prospects in the province’s southeast, have contributed to this strong result,” Industry and Resources Minister Eric Cline said.  “The industry continues to demonstrate its confidence in Saskatchewan and the opportunities presented here.”

February’s sale included seven exploration licences that sold for $12.3 million and 223 lease parcels that brought in over $16.2 million.

The Weyburn-Estevan area again led the way with bonus bid activity of over $22.8 million.  The Lloydminster area was next at $4.7 million, followed by the Kindersley-Kerrobert area and the Swift Current area at over $727,000 and $230,000 respectively.

The highest price for a single parcel was almost $4.3 million.  Prairie Land & Investment Services Ltd. purchased this exploration licence of over 19 sections in the Minton area of south-central Saskatchewan.

The highest price paid on a per-hectare basis was $5,177.  Prairie Land & Investment Services Ltd. was the successful bidder, acquiring a 65 hectare lease parcel in the Forget area of southeastern Saskatchewan for over $335,000.

The next sale of Crown petroleum and natural gas dispositions will be Monday, April 2, 2007.

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For more information, contact:

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