STRONG LAND SALE OF $39.5 MILLION TO START THE YEAR

Fierce competition in the southeast Bakken oil play bolstered the first sale of Crown petroleum and natural gas rights for 2010.

February's sale brought in $39.5 million in revenue for the province, the second highest total for a February sale. This brings the total revenue from land sales for the 2009-10 fiscal year to $151.4 million.

"The continuing upward trend in land sale revenues reflects the industry's confidence in our province," Energy and Resources Minister Bill Boyd said. "Combine that with projections of increased drilling and new industry interest in areas that have shale gas potential, and we anticipate an exciting and vibrant year in the oil patch."

February's sale included 18 petroleum and natural gas exploration licences that sold for $10.3 million and 293 lease parcels that attracted $29.2 million in bonus bids.

The Weyburn-Estevan area received nearly $25.9 million in bonus bids, largely on the strength of the Bakken play. Next was the Lloydminster area at $5.7 million, followed by the Swift Current area at $4 million and the Kindersley-Kerrobert area at $3.9 million.

The highest price paid for a single parcel was $2.1 million. Standard Land Company Inc. acquired this 1,552-hectare exploration licence near Unity.

The highest price on a per-hectare basis was $6,512. Baytex Energy Ltd. bid $105,427 for a 16-hectare lease parcel near Maidstone.

Three special exploratory permits were awarded to Scott Land & Lease Ltd. on the basis of work commitments of $1.5 million over the next two years. These permits are for the exploration of 104,300 hectares north of Prince Albert between Big River and Nipawin.

The next sale of Crown petroleum and natural gas dispositions will be held on April 12, 2010.

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For more information, contact:

Bob Ellis
Energy and Resources
Regina
Phone: 306-787-1691
Email: robert.ellis@gov.sk.ca