STRONG LAND SALE CLOSES RECORD-SETTING YEAR

Saskatchewan's record-breaking, billion-dollar year for sale of Crown petroleum and natural gas rights has finished strongly, with the second-best December sale ever.

December's sale brought in $47.6 million and boosted to $1.12 billion the 2008 year-end revenues to the province. Revenues from what is a traditionally quieter sale were two to three times those of each of the last three December sales.

"These results cap what has been an extraordinary year of activity for our oil and gas industry," Energy and Resources Minister Bill Boyd said. "This billion-dollar investment in our province speaks volumes about the attractiveness of our oil and gas resources and industry's confidence in our investment climate.

"What is also significant is that many of the exploration licences sold this year and in 2007 have been for two-year terms, so that industry will be quickly moving from land acquisition to drilling and exploration. And that's great news for all the suppliers and communities that prosper from our number one industry."

December's sale featured 24 petroleum and natural gas exploration licences that sold for $10.8 million and 295 lease parcels that brought in $36.7 million.

Continuing interest in the red-hot Bakken oil play meant that the Weyburn-Estevan area again attracted the most bids with sales of $40.2 million. The Swift Current area was next at $2.9 million, followed by the Lloydminster area at $2.4 million and the Kindersley-Kerrobert area at $2.1 million.

The highest price paid for a single parcel was $6.2 million. Saskatoon Assets Inc. acquired this 194-hectare lease, located 17 kilometres northeast of Stoughton. This parcel also had the highest price on a per-hectare basis, at $32,128.

The next sale of Crown petroleum and natural gas dispositions will be February 9, 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