A RECORD YEAR FOR SASKATCHEWAN LAND SALES

The results of the October sale of petroleum and natural gas rights are in and Saskatchewan has broken the all time annual record for sales.

With one sale yet to be held this year, the annual total to date of over $235 million smashes the previous record of $199.7 million set in 1994. October's sale of $84 million came close to breaking the record for a single sale.

"High commodity prices, hot oil prospects and a competitive fiscal regime have all worked in Saskatchewan's favour," Industry and Resources Minister Maynard Sonntag said. "We've worked hard to establish an attractive investment climate for the oil and gas sector and as a result Saskatchewan people are feeling the benefits."

The sale included 10 exploration licences that sold for $44.1 million and 249 lease parcels that brought in $39.9 million.

The Weyburn-Estevan area led the way again on the strength of the Bakken oil play, with sales of over $56.5 million. The Swift Current area was also strong with $25.4 million in sales, followed by the Lloydminster area at $1.7 million and the Kindersley-Kerrobert area at $427,000.

The highest price paid for a single parcel set another record at $10.2 million. Prairie Land & Investment Services Ltd. purchased this 1,500-hectare exploration licence of deeper rights beneath the Benson Midale Beds Pool in southeast Saskatchewan.

The highest price paid on a per hectare basis was $8,100. Villanova Energy Corp. was the successful bidder, acquiring a small 32-hectare lease parcel in the Midale Central Midale Beds Pool in southeast Saskatchewan.

The next sale of Crown petroleum and natural gas rights will be Monday, December 3, 2007.

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For more information, contact:

Bob Ellis
Industry and Resources
Regina
Phone: 306-787-1691