LAND SALE YIELDS $12.8 MILLION

Saskatchewan has kicked off a new fiscal year with robust land sale activity.

The April sale of Crown petroleum and natural gas rights generated $12.8 million in revenue for the province.

"Interest in Saskatchewan's oil and gas resources remains strong and this is good news for the province," Industry and Resources Minister Eric Cline said. "Our oil and gas industry contributes significantly to the remarkable quality of life that we enjoy in this province by attracting investment, creating jobs and generating revenue."

The sale included 10 exploration licences that sold for $1.1 million and 407 lease parcels that brought in $11.7 million.

The heavy oil-prone areas of Kindersley-Kerrobert and Lloydminster led the way with bonus bid activity of $4.9 million and $3.5 million, respectively. The Weyburn-Estevan area was next at $2.3 million, followed by the Swift Current area at $2.1 million.

The highest price received for a single parcel was $223,434. Scott Land & Lease Ltd. of Calgary purchased the four-section lease parcel in a relatively unexplored area just south of the town of Admiral in southwest Saskatchewan.

The highest price on a per hectare basis was $2,319. Husky Oil Operations Limited of Calgary paid $75,062 for the 32-hectare parcel located in the Carnduff Frobisher Beds Pool in the southeast corner of the province.

The next sale of Crown petroleum and natural gas dispositions will be June 8th, 2004.

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For More Information, Contact:

Ed Dancsok Industry and Resources Regina Phone: (306) 787-2602