OCTOBER LAND SALE BRINGS IN $34.5 MILLION

Interest in Saskatchewan's oil and gas resources remains high, as the $34.5 million in revenue to the province from the October sale of Crown petroleum and natural gas rights shows.

October's sale pushed land sale revenue for the 2010 calendar year to $406 million, well ahead of the $83 million in revenue at the same time last year.

"Our oil and gas industry is on an upswing in 2010, and these latest results show the industry's confidence not only in our resources but also in our investment climate," Energy and Resources Minister Bill Boyd said. "This is only the second time our calendar year total for land sale revenue has topped $400 million, so with one sale to go, 2010 is proving to be a great year indeed for the industry and for the people of Saskatchewan."

October's sale included 19 petroleum and natural gas exploration licences that sold for $20 million and 183 lease parcels that attracted $14.5 million in bonus bids.

The Weyburn-Estevan area received the most bids with sales of $25.5 million. The Kindersley-Kerrobert area was next at $4.9 million, followed by the Lloydminster area at $2.4 million, and the Swift Current area at $1.7 million.

"The Bakken play continues to grab the headlines, but it's encouraging to see new activity in emerging plays such as the Birdbear Formation between Moosomin and Carlyle," Boyd said. "The industry is casting its exploration ‘net' wider, and is being rewarded for its investments."

The highest price for a single parcel was $7.1 million, paid by Prairie Land & Investment Services Ltd. for a 2,562-hectare exploration licence near Moosomin.

The highest price on a per-hectare basis was $9,344. Aldon Oils Ltd. bid $1.2 million for a 130-hectare lease parcel near Radville.

The next sale of Crown petroleum and natural gas dispositions will be held on December 6, 2010.

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For more information, contact:

Bob Ellis
Energy and Resources
Regina
Phone: 306-787-1691
Email: robert.ellis@gov.sk.ca