April Oil and Gas Public Offering Raises $19.3 Million

Saskatchewan’s April public offering of Crown petroleum and natural gas rights, held on Tuesday, April 5, has generated $19,307,203.94 in revenue for the province, more than ten times the revenue generated by the April 2021 offering.

The April sale is the first of six oil and gas public offerings scheduled for the 2022-23 fiscal year. The previous five sales raised $6.1 million in February 2022, $1.4 million in December, $1.9 million in October, $3.1 million in August, and $0.5 million in June 2021. With this result, public offerings for the 2022-23 fiscal year have already exceeded 2021-22’s total of $14,988,127.34.

Of the 208 parcels offered, 169 parcels received acceptable bids, representing over 23,000 total hectares. Four parcels received bids that were rejected as unacceptable after a technical review, and no bids were submitted for the remaining 35 parcels. The average bonus bid was $816.80 per hectare with the highest acceptable bid at $24,318.44 per hectare.

The Estevan area produced the highest interest, bringing in $17,111,929.83 for 142 parcels totalling 11,890.306 hectares. Seventeen of those parcels alone received total bonus bids of $12,193,442.53.

Kindersley-Kerrobert

Only two leases were posted in west central Saskatchewan, and both sold. Those leases totaled 487 hectares, and sold for $171,955, or $353 per hectare.

The highest bonus bid and dollars per hectare received on a lease in this area was $115,471 or $509 per hectare. This 227 hectare lease was awarded to Teine Energy Ltd. and is located 15 kilometres southeast of Plenty, adjacent to the Dodsland Viking Oil Pool.

The next sale of the current 2022-23 fiscal year is scheduled for Tuesday, June 7, 2022.

PHOTO: The leases picked up in southwest Saskatchewan are just south of these wells, west of Frontier. Yes, that speck on the horizon is your dog running away for the third day.\

Photo by Brian Zinchuk