LAND SALES ON RECORD PACE

June's sale of Crown petroleum and natural gas rights collected $34.5 million bringing this year's total revenue to over $102 million. This compares to $63.6 million at this time last year and marks the fastest time to reach $100 million.

"These numbers show the confidence that the oil and gas sector has in Saskatchewan prospects," Industry and Resources Minister Eric Cline said. "The southeast light oil plays are again dominating the sale, and we're seeing a greater commitment to the province in the amount of dollars invested."

The June sale netted $9.6 million from the sale of 17 exploration licences and $24.9 million for 293 lease parcels.

The Weyburn-Estevan area again led the way with bonus bids totalling $22.4 million. The most notable number out of this area was the average price per hectare of $720. The Lloydminster area was next at $6.1 million, followed by Swift Current area at $4.4 million and the Kindersley-Kerrobert area at $1.6 million. The provincial average on a per-hectare basis was $376.

The highest price paid for a single parcel almost topped $2.7 million. Prairie Land and Investment Services Ltd. purchased this exploration licence of just over five sections located four kilometres north of Forget in southeastern Saskatchewan.

The highest price paid on a per-hectare basis was $6,375. Canadian Natural Resources Limited was the successful bidder, acquiring this 16-hectare parcel in the Browning Frobisher-Alida Beds Pool in southeastern Saskatchewan for $102,587.

The next sale of Crown petroleum and natural gas dispositions will be August 15th, 2006.

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For More Information, Contact:

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