DECEMBER LAND SALE BRINGS IN $34.9 MILLION

Revenue from the sale of Crown petroleum and natural gas rights continued its steady climb from earlier in 2009 with the largest land sale of the year.

December's sale brought in $34.9 million in revenue for the province, bringing the 2009 calendar year revenues to $118.2 million. Total revenues from land sales for the 2009-10 fiscal year now stand at $111.9 million.

"The industry continues to build momentum in this sale and the one that preceded it in October," Energy and Resources Minister Bill Boyd said. "We're seeing increased industry activity over the last half of 2009 as a result of the strengthening in oil prices. Some companies have announced ambitious drilling programs for 2010 and this sale would indicate that others may be drilling more aggressively next year."

December's sale included 14 petroleum and natural gas exploration licences that sold for $14.7 million and 257 lease parcels that attracted $20.2 million in bonus bids.

The Lloydminster area received the most bids with sales of $22.5 million. The Weyburn-Estevan area was next at $6.9 million, followed by the Kindersley-Kerrobert area at $4.4 million and the Swift Current area at $1.1 million.

The highest price paid for a single parcel was $3.5 million. Canadian Coastal Resources Ltd. Acquired this 2,290-hectare exploration licence near Unity.

The highest price on a per-hectare basis was $3,983. Scott Land & Lease Ltd. Bid $515,754 for a 129.5-hectare lease parcel near Maidstone.

At $34.9 million, the December land sale was the fourth largest year-end sale.

The next sale of Crown petroleum and natural gas dispositions will be held on February 8, 2010.

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For more information, contact:

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