OIL AND GAS LAND SALES ON RECORD PACE

Interest in Saskatchewan's oil and gas resources is continuing at a record pace.

With the August sale of $20.5 million for Crown petroleum and natural gas rights, more than $90 million in revenue has already been generated this fiscal year, well ahead of the $41.5 million collected for the corresponding time period last year.

"These latest results demonstrate industry's confidence in Saskatchewan and its wide open future," Industry and Resources Minister Eric Cline said. "There is a strong and noticeable trend that the oil and gas industry is choosing this province as a place to do business."

The August sale netted $8.6 million on the sale of 45 exploration licences and $11.9 million for 378 lease parcels.

The Swift Current area received the most bonus bid activity with sales of just under $10.2 million. The Lloydminster area was next at $5.2 million, followed by the Weyburn-Estevan area at $3.2 million and the Kindersley-Kerrobert area at just under $2 million.

The highest price received for a single parcel was $755,751. Scott Land & Lease Ltd. of Calgary purchased this exploration licence of over 25 sections, located 8 kilometres northwest of Shaunavon.

The highest price on a per hectare basis was $1,627. This 49 hectare parcel, located 12 kilometres southwest of Carnduff, was purchased for $79,024 by Western Land Services Co. Ltd. of Calgary.

The next sale of Crown petroleum and natural gas dispositions will be October 7, 2003.

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For More Information, Contact:

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