LAND SALE REVENUES MORE THAN $80 MILLION FOR YEAR

Interest in Saskatchewan's energy resources remains strong with land sale numbers continuing to climb.

December's sale of Crown petroleum and natural gas rights reached the highest mark for 2004 at $17.3 million. This brings the calendar year total to $80.8 million, putting 2004 into the top ten annual land sales of all time.

"Industry continues to demonstrate its confidence in the province as a good place to invest and do business," Industry and Resources Minister Eric Cline said. "We are particularly encouraged by the renewed interest in the province's southeast, which has been sparked by continued high commodity prices coupled with new, deeper oil plays."

The sale included nine exploration licences that sold for $4.7 million and 239 lease parcels that brought in $12.6 million.

Average dollars paid per hectare was $272.62, the highest average since September 1983.

The Weyburn-Estevan area once again received the most bonus bid activity with sales totalling just under $8.5 million. The Lloydminster area was next at $5.5 million, followed by the Kindersley-Kerrobert area at $2.9 million. The Swift Current area rounded out the sale at just under $500,000.

In addition to the parcels sold for bonus bids, three special exploratory permits were awarded on the basis of work commitments. Two permits, located northwest of Nipawin, covering an area of over 73,000 hectares, were awarded with work commitments exceeding $350,000. The other permit, south of Prince Albert, received a commitment of $218,000 for work on over 42,000 hectares.

The highest price received for a single parcel was $1,149,130.25. This 3¼-section lease parcel, located 40 kilometres east of Weyburn, was purchased by O & G Resource Group Ltd.

The highest price on a per-hectare basis was $2,015. Canadian Coastal Resources Ltd. paid over $160,000 for an 80 hectare lease parcel on the Saskatchewan-Alberta border 60 kilometres northwest of Kindersley.

The next sale of Crown petroleum and natural gas dispositions will be February 8th, 2005.

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For More Information, Contact:

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