December oil and gas public offering brings in $17.2 million in provincial revenue

The Government of Saskatchewan's Crown petroleum and natural gas public offering, held on Tuesday, December 5, 2023, has raised $17,230,215.44 for the province.

Of the 70 parcels posted for this offering, 40 parcels received acceptable bids. These bids covered 15,594.075 hectares.

The Estevan area generated the most interest, yielding $11,277,440.47 for 17 leases and one exploration licence totalling 2,443.839 hectares.

Following that, bids for leases and licences in the Lloydminster area raised $3,552,733.57. These bids covered 13 leases and three exploration licences totalling 3,917.825 hectares.

Acceptable bids in the Kindersley area generated $2,400,041.40 for three leases and three exploration licences totalling 9,232.411 hectares.

Millennium Land (555) Limited made the highest bonus bid and the highest dollars-per-hectare bid in this offering - $10,084,381.86, or $7,778.89 per hectare. This bid is for a 1,296.378 hectare exploration licence in the Estevan area, west of Alameda and is prospective for oil in the Frobisher Beds.

After five of six public offerings this fiscal year, the province has received $65,464,000.73 in revenue. At this time last fiscal year, oil and gas public offerings had generated $46,105,597.68 in revenue.

Factors that affect public offering activity include fluctuations in the price of oil or gas; availability of lands that are prospective for oil or gas; geological and technological constraints; and market conditions that favour inventory growth through mergers and acquisitions rather than through public offerings.

The next scheduled date for a public offering in Saskatchewan is February 6, 2024. It features 46 leases covering 11,246.027 hectares and two exploration licences covering 6,013.485 hectares.