APRIL LAND SALE SHOWS CONFIDENCE IN SASKATCHEWAN OIL INDUSTRY

Significant industry interest in the red-hot Bakken oil play has resulted in a strong result for the April sale of Crown petroleum and natural gas rights for the province.

April's sale brought in $190.1 million in revenue, the second-highest total for an April land sale.

"We're very encouraged by these results," Energy and Resources Minister Bill Boyd said. "It demonstrates increased interest and activity in our oil patch in 2010, after a somewhat slower year in 2009."

Boyd said while he expects industry interest to remain strong throughout 2010, revenues from upcoming sales are expected to be lower.

"We don't expect the interest to be as high as this in upcoming land sales, but with a rebounding industry and the other spin-offs from its exploration work, we are looking at a very exciting year ahead for our oil patch," Boyd said.

April's sale included 26 petroleum and natural gas exploration licences that sold for $142.4 million and 286 lease parcels that attracted $47.7 million in bonus bids.

The Weyburn-Estevan area, driven by the interest in the Bakken, received the most bids with sales of $139 million. The Kindersley-Kerrobert area was next at $25 million, followed by the Swift Current area at $23.2 million and the Lloydminster area at $2.9 million.

The highest price for a single parcel was $23.5 million, paid by Scott Land & Lease Ltd. for a 4,210-hectare exploration licence near Oungre in southeast Saskatchewan.

The highest price on a per-hectare basis was $15,600. Canadian Coastal Resources Ltd. bid $1,010,111 for a 65-hectare lease parcel near Redvers.

Boyd noted the average price of $1,629 per hectare for the entire sale was considerably more than the average per hectare prices recorded in the most recent land sales in Alberta ($974) and British Columbia ($716).

The next sale of Crown petroleum and natural gas dispositions will be held on June 7, 2010.

-30-

For more information, contact:

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