FEBRUARY LAND SALE GENERATES OVER $35 MILLION

Strong industry interest in Saskatchewan's oil and gas resources has once again resulted in robust land sale revenues for the province.

February's sale of Crown petroleum and natural gas rights yielded $35.1 million in revenue for the province, making it the highest sale in over two years. The sale brought the 2005-06 total to $140.6 million, well above the five-year average of $100 million. Moreover, the average price per hectare topped $400 which is also well above the five year average of $191.

"Industry's confidence in our province, combined with sustained high commodity prices and tremendous industry cash flow, is fuelling this ongoing exploration momentum," Industry and Resources Minister Eric Cline said. "Continued interest in the acquisition of oil and gas rights bodes well for the future strength of our top industry."

The sale included 18 exploration licences that sold for $11.8 million and 284 lease parcels that brought in $23.3 million.

The Swift Current area led the way with sales of $17.6 million. The Weyburn-Estevan area was next at $9.4 million, followed by the Lloydminster area at $4.8 million and the Kindersley-Kerrobert area at $3.3 million.

The highest price received for a single parcel was $2.3 million. Silver Hawk Resources Ltd. purchased this five-section exploration licence located in southeast Saskatchewan near Stoughton.

The highest price paid on a per-hectare basis was $3,232. Hummingbird Energy Inc. was the successful bidder, acquiring a one-quarter section lease parcel 13 kilometres south of Weyburn for $208,000.

The next sale of Crown petroleum and natural gas dispositions will be April 11th, 2006.

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For More Information, Contact:

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