AUGUST LAND SALE BRINGS IN $14.8 MILLION

The August sale of Crown petroleum and natural gas rights has totalled $14.8 million. Cumulative revenue from land sales for the 2009 calendar year now stands at $50.8 million.

Results from the latest sale are consistent with those from the three that preceded it in 2009. Those sales averaged $12 million each, and this latest sale continues to reflect the cautious approach the oil and gas industry is taking this year throughout North America.

"In a year of lower, but recovering oil prices, industry continues to show a steady, sustained interest in our oil patch," Energy and Resources Minister Bill Boyd said. "While land sale activity is admittedly not at the exceptional, record-breaking level of 2008, this latest sale in fact provides a fine example of the strength and diversity of our oil and gas resources.

"The Bakken play continues to contribute the lion's share of revenue in this sale, but parcels in each of the other three oil producing areas have generated excellent bonus bids, showing that Saskatchewan's business climate and resource reserves continue to attract significant capital expenditures to the province."

August's sale included five petroleum and natural gas exploration licences that sold for $1.4 million and 211 lease parcels that attracted $13.4 million in bonus bids.

The Weyburn-Estevan area, largely on the strength of the Bakken play, received the most bids with sales of $8.2 million. The Lloydminster area was next at $3.8 million, followed by the Kindersley-Kerrobert area with bonus bids totaling $2 million and the Swift Current area at $725,000.

The highest price bid for a single parcel was $829,402. Prairie Land & Investment Services Ltd. acquired this 809-hectare lease parcel 35 kilometres west of Estevan.

The highest price paid on a per-hectare basis was $8,721. Western Land Services Co. Ltd. acquired this 0.75-hectare lease parcel 60 kilometres southeast of Lloydminster.

The next sale of Crown petroleum and natural gas dispositions will be held on October 5, 2009.

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For more information, contact:

Ed Dancsok
Energy and Resources
Regina
Phone: (306)787-2591
Email: ed.dancsok@gov.sk.ca