FEBRUARY LAND SALE GENERATES $29 MILLION

Industry interest in Saskatchewan's oil and gas resources has once again resulted in robust land sale revenues for the province.

February's land sale of Crown petroleum and natural gas rights yielded $29 million in revenue for the province, making it the highest sale of the 2004-05 fiscal year. The sale brought the fiscal year total to just under $93 million -- on par with the five-year average.

"This industry confidence in our province, coupled with recent natural gas discoveries, is fueling the current momentum of the energy sector," Industry and Resources Minister Eric Cline said. "Our oil and gas industry contributes significantly to the quality of life that we enjoy in this province. The industry attracts investment, creates jobs, and generates revenue which has been instrumental to becoming a 'have' province."

The sale included 13 exploration licences that sold for $16.5 million and 252 lease parcels that brought in $12.4 million.

In addition, one special exploratory permit was awarded on the basis of a work commitment. This large disposition covering 16 townships in the Chaplin area was awarded to Scott Land & Lease Ltd. on a work commitment of over $4.3 million.

The Kindersley-Kerrobert area saw the most activity with sales of almost $11 million. The Lloydminster area was next at $8.1 million, followed by the Weyburn-Estevan area at $5.2 million and the Swift Current area at $4.7 million.

The highest price received for a single parcel was $3,692,106. Windfall Resources Ltd. purchased this 22-section exploration licence located just outside the Senate Second White Specks Gas Pool in the extreme southwest corner of the province.

The highest price paid on a per hectare basis was $4,102. Raymark Lands Ltd. was the successful bidder, acquiring this ¼-section parcel located 11 km east of Maidstone in the Lloydminster area, for $265,584.

The next sale of Crown petroleum and natural gas dispositions will be April 12, 2005.

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For More Information, Contact:

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