June Crown land sale brings in $9.3 million, consistent with the previous sale

By Brian Zinchuk

Each Crown land sale for petroleum and natural gas rights this fiscal year has come in the around the $10 million mark. On Tuesday, the Government of Saskatchewan’s Crown petroleum and natural gas public offering has raised $9,380,671 for the province. That follows a the April sale of $11,113,460.

Of the 100 parcels posted for this sale, 88 parcels received acceptable bids. These bids covered 19,095 hectares.

After two of six public offerings this fiscal year, the province has received $20,494,130 in revenue.

Stampede Drilling Rig 7 , which was rigging up on May 30 in Lampman. There was considerable interest in the Estevan area in the June land sale. Photo by Brian Zinchuk

Estevan area

The Estevan area generated the most interest, bringing in $4,004,142 for 52 leases totalling 5,294 hectares. This compares to $6,439,086 an average of $1,482/hectare at the last offering. All 52 leases posted in southeast Saskatchewan sold.

The highest bonus bid in this area was $458,055 for a 260 hectare lease. This lease is located eight kilometres north of Oxbow, adjacent to the Alameda East Frobisher Oil Pool. ROK Resources Inc. was the successful bidder.

The highest dollars per hectare received on a parcel in this area was $9,172 per hectare. This 32 hectare lease was awarded to Surge Energy Inc. and is located 32 kilometres northeast of Midale. This lease is prospective for oil in the Frobisher Beds of the Madison Group and the Bakken Formation.

Lloydminster area

It turns out the most attractive land in the Lloydminster area was within spitting distance of the city.

Thirty-three leases were posted in northwest Saskatchewan totalling 9,266 hectares. Of those, 26 leases totalling 7,255 hectares sold, bringing in $1,725,264. That was an average of $237/hectare. This compares to $3,294,125, an average of $342/hectare at the last offering.

The highest bonus bid and highest dollars per hectare received on a lease in this area was $230,411, or $946 per hectare. This 244 hectare lease is located three kilometres east of Lloydminster, adjacent to the Aberfeldy South Sparky Sand Oil Pool and the Aberfeldy GP Sand Oil Pool. The successful bidder was Millennium Land (333) Ltd.

Kindersley area

The Kindersley area also saw considerable interest, according to the Ministry, bringing in $3,651,265 for 10 leases totalling 6,545 hectares. There were 15 leases posted, totalling 10,166 hectares. Those 10 leases averaged $558/hectare. This compares to $1,180,889, an average of $181/hectare at the last offering.

The highest bonus bid received on a west central Saskatchewan lease in this offering is $1,383,204 from Whispering Hills Resources Ltd. for a 1,042 hectare lease northeast of Dodsland in the Kindersley area. Whispering Hills Resources picked up a second lease in this area, totalling 779.856 hectares, for $872,745.

Swift Current area

There were no parcels posted in the Swift Current area during this offering. At the last offering this area received $199,359, an average of $102/hectare.

The next scheduled date for a petroleum and natural gas public offering in Saskatchewan is August 8, 2023.