CROWN LAND SALES START THE NEW YEAR STRONG

Land sale revenue for the 2006-07 fiscal year got off to a very strong start with April's sale of Crown petroleum and natural gas rights.

The sale netted $31.8 million in revenues for the province -- over twice the amount collected at the same sale last fiscal year.

"The oil and gas industry continues to respond positively to improvements in Saskatchewan's tax and royalty regime," Industry and Resources Minister Eric Cline said. "They did so in 2002; they did so in 2005; and I have every expectation that they will again respond to business tax changes in this year's budget. Of course, commodity prices are a great part of the present surge, and add to an attractive investment climate that has been established for industry growth and expansion."

April's sale included 15 exploration licenses that sold for $9.7 million and 265 lease parcels that brought in $22.1 million.

In addition, one special exploratory permit was awarded on the basis of a work commitment. This large disposition covering close to six townships in the Big River area, northeast of Prince Albert, was awarded to Redstar Oil and Gas Inc. on a work commitment of $420,000 over the next two years.

The Weyburn-Estevan area saw the most activity with bonus bids totaling $14.6 million. The Swift Current area was next at just over $7 million, followed by the Kindersley-Kerrobert area at $5.6 million and the Lloydminster area at $4.5 million.

The highest price received for a single parcel was just under $3.3 million. Western Land Services Co. Ltd. purchased this seven-section exploration license located just north of Redvers in southeast Saskatchewan.

The highest price paid on a per hectare basis was $3,840. Brahma Resources Ltd. was the successful bidder, acquiring a 16-hectare lease parcel 19 kilometres northeast of Lloydminster for $62,550.

The next sale of Crown petroleum and natural gas dispositions will be June 13th, 2006.

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For More Information, Contact:

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