AUGUST LAND SALE GENERATES $10.5 MILLION

Interest in Saskatchewan's energy resources has once again resulted in a strong sale of Crown petroleum and natural gas rights.

August's land sale generated $10.5 million in revenue for the province. That's up from the $7.1 million recorded in the June sale and brings total revenues for the calendar year to $47.2 million.

"Industry continues to show its confidence in Saskatchewan and its resources," Industry and Resources Minister Eric Cline said. "Our land sale results and solid oil and gas drilling numbers point to another good year for the industry."

The sale included five exploration licences that sold for $890,000, along with 297 lease parcels that brought in $9.6 million.

In addition, one special exploratory permit was awarded on the basis of a work commitment. This very large disposition of over 15 townships in size is located in the Riverhurst area, on both sides of Lake Diefenbaker. Prairie Land & Investment Services Ltd. acquired the disposition with a work commitment of over $4.8 million.

The Swift Current area saw the most activity with sales of $3.2 million, followed closely by the Lloydminster area at $3.0 million. The Weyburn-Estevan area followed closely at $2.8 million with the Kindersley-Kerrobert area rounding out the sale at $1.5 million.

The highest price received for a single parcel was $403,979. McCrank Stewart Johnson purchased this one-section lease parcel, located just outside the Senate Second White Specks Gas Pool in the extreme southwest corner of the province.

The highest price received on a per-hectare basis was $3,120. Landex Petroleum Corp. was the successful bidder, acquiring a 16-hectare lease parcel in the Souris Flat Frobisher Beds Pool in the extreme southeast corner of the province, for $50,512.

The next sale of Crown petroleum and natural gas dispositions will be October 5th, 2004.

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For More Information, Contact:

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