LAND SALE RECORDS SMASHED – BOTH SINGLE SALE AND FISCAL YEAR

A record-breaking 2007 for sales of Crown petroleum and natural gas rights has now been followed by the best single land sale and the best fiscal year in Saskatchewan's history.

February's sale of Crown petroleum and natural gas rights raised an amazing $197 million in revenue for the province, more than doubling the old record of $85 million set in 1994. This brings the 2007-08 fiscal year total to $419 million, eclipsing the previous record of $202 million set in 1994-95.

"These numbers are simply incredible and are a great start to 2008 for our province and our oil and gas industry," Energy and Resources Minister Bill Boyd said. "They speak to the dynamic investment climate for our oil and gas resources, and underscore the heightened interest in the rich Bakken oil play in southeast Saskatchewan and the emerging oil play in the Shaunavon area. They are also reflective of the confidence businesses have in our new government. This record land sale will also translate into more economic growth and job opportunities for Saskatchewan people."

February's sale included 16 exploration licences that sold for $120.5 million and 308 lease parcels that brought in $76.7 million. Another record shattered was the average price paid on a per hectare basis at $2,495, beating the old mark of $1,515 set in October.

On the strength of the hot Bakken oil play, the Weyburn-Estevan area dominated the sales activity, bringing in $132 million. This was followed by the Swift Current area with $47 million in sales, largely on the strength of the new Shaunavon oil play. The Kindersley-Kerrobert area was next at $16 million, followed by the Lloydminster area at $2 million.

The highest price paid for a single parcel was $30.7 million. Saskatoon Assets Inc. purchased a 2,900-hectare exploration licence in the Shaunavon area.

The highest price paid on a per-hectare basis was $15,255. Saskatoon Assets Inc. picked up this lease parcel of deeper rights, located in the midst of the Bakken play at Stoughton, for just under $2 million.

"We have a great oil and gas story to tell, and Premier Wall and I have been telling that story across the country," Boyd said. "Coming off a $250 million record calendar year in land sales, Saskatchewan and our leading industry are poised for excellent economic growth."

The next sale of Crown petroleum and natural gas dispositions will be Monday, April 7, 2008.

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For more information, contact:

Ed Dancsok
Energy and Resources
Regina
Phone: 306-787-2602