SASKATCHEWAN RECORDS SECOND HIGHEST LAND SALE OF ALL TIME

Driven by strong interest in the Bakken Formation oil play, Saskatchewan has recorded its second highest land sale of Crown petroleum and natural gas rights.

The April sale generated $70.2 million in revenue for the province.  The all-time record was set in October 1994 at $84.8 million.

“These results are great news for the province and our dynamic oil and gas industry,” Industry and Resources Minister Eric Cline said.  “Continued strong interest in the southeast and the Bakken play plus ongoing exploration in other areas of the province are solid indicators of the confidence the industry has in Saskatchewan.”

This month’s sale included nine exploration licences that sold for over $39 million and 176 lease parcels that brought in $31.2 million.

The Weyburn-Estevan area received most of the bonus bid activity with total sales of $67.1 million.  The Lloydminster area was next at $1.7 million, followed by the Swift Current area and the Kindersley-Kerrobert area with sales of over $900,000 and $500,000 respectively.

The highest price for a single parcel was nearly $8.1 million.  Petrobank Energy and Resources Ltd. purchased this 1,424-hectare exploration licence 29 kms east of the City of Weyburn.

The highest price paid on a per-hectare basis was $6,364.  Petrobank Energy and Resources Ltd. acquired three lease parcels and two exploration licences on a per-hectare basis in various locations in the Stoughton area of southeast Saskatchewan for just over $19.7 million.  The total amount spent by Petrobank Energy and Resources Ltd. in the sale was over $59.4 million.

The next sale of Crown petroleum and natural gas dispositions will be June 4, 2007.

-30-

For more information, contact:

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