October oil and gas public offering generates $7.3 million in revenue

The Government of Saskatchewan's Crown oil and natural gas public offering, held on Tuesday, October 29, raised $7,304,936.95 for the province, with the Estevan area generating the majority of the revenue.

Of the 112 parcels posted for this offering, 93 received acceptable bids, covering a total 15,347.639 hectares.

The Estevan area generated the most financial interest, bringing in $5,417,916.25 for 56 leases and one exploration licence for a total of 8,330.517 hectares.

The Kindersley area generated $1,325,636.53 for 21 leases for a total of 5,063.604 hectares.

Surge Energy Inc. made the highest bonus bid and the highest dollars-per-hectare bid in its offering of $1,369,276.03, or $5,284.76 per hectare. This was for a 259.099 hectare lease in the Estevan area, northeast of Macoun. 

Millennium Land (444) Ltd. won the single exploration licence posted in this offering, bidding $407,670.71 for a 2,318.023 hectare licence in the Estevan area, south of Minton.

After four public offerings this fiscal year, the provincial government has raised $37,382,523.18 in revenue. The next offering is scheduled for December 3, 2024. 

There are six scheduled public offerings of oil and natural gas dispositions held each fiscal year in Saskatchewan. This process uses an open and competitive bidding system to issue oil and natural gas dispositions.

Several factors affect public offering activity, including changes in oil and gas prices, land availability, geological and technological constraints and various market conditions.