OCTOBER LAND SALE GENERATES $32.4 MILLION

The October sale of Crown petroleum and natural gas rights has brought in $32.4 million in revenue for the province, the largest sale of the year. Total revenue from land sales for the 2009 calendar year now stands at $83.2 million.

"This shows we continue to be on the right track," Energy and Resources Minister Bill Boyd said. "Revenue from the October sale is over double that received from the August sale. This is a clear message from industry that Saskatchewan continues to be an attractive place to invest."

October's sale included three petroleum and natural gas exploration licenses that sold for $3.8 million and 273 lease parcels that attracted $28.6 million in bonus bids.

The Lloydminster area received the most bids with sales of $13.3 million. The Weyburn-Estevan area was next at $12.1 million, followed by the Kindersley-Kerrobert area with bonus bids totalling $4.6 million and the Swift Current area at $2.4 million.

The highest price paid for a single lease parcel was $3 million. Windfall Resources Ltd. acquired this 57.47-hectare lease parcel, located 42 kilometers east of Weyburn. This parcel also had the highest price on a per-hectare basis at $52,847.

The average price per hectare in Saskatchewan's October sale was $524. The average per hectare price in the most recent Alberta sale was $273.

The next sale of Crown petroleum and natural gas dispositions will be held on December 7, 2009.

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For more information, contact:

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