Swift Current area records $1.1 million in activity during August petroleum and natural gas rights sale

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The August sale of petroleum and natural gas rights was the highest for the province in 2013, generating $15.1 million in revenue.

In the Swift Current region a total of $1.1 million in interest was shown, third best in the province, while increasing the region's year to date totals to $3.54 million. The Feb. 2013 sale was the best this year at $1.3 million, while the June 2013 sale was this year's lowest at only $139,326.

The bright spot for the Southwest during the sale was Mammoth Land Services Limited's bid of $363,702 for a 64.75-hectare lease south of Gull Lake which was the sale's highest price on a per-hectare basis at $5,617.

The Weyburn-Estevan area continues to do the heavy lifting in generating activity, recording $11.1 million in sales. The Kindersley-Kerrobert region surpassed their $1.83 million generated over the first three sales during 2013 with $2.1 million in activity during the August sale. Just behind the Swift Current area's $1.1 million in activity was the Lloydminster region at $688,887.

Of the $44.2 million in activity during Saskatchewan's petroleum and natural gas rights in 2013, the Weyburn-Estevan area has generated $27.7 million of that total, followed by the Lloydminster area $9.1 million, Kindersley-Kerrobert is third at $3.93 million, while Swift Current and area has contributed $3.54 million in activity.

The average price paid for leases during the August sale was $690 per hectare, the highest since the August 2011 land sale.

“Saskatchewan continues to offer great resources in a competitive climate,” Energy and Resources Minister Tim McMillan stated in a press release. “The premium that industry has placed on acquiring oil and gas leases shows that this is a great place to invest.”

The three oil shale special exploratory permit blocks on offer near Hudson Bay received a total of $4.6 million in work commitment bids from Canshale Corp.

The highest price paid for a single parcel was $1.7 million. Scott Land & Lease Ltd. acquired the 1,036-hectare exploration licence north of Estevan.

“Industry continues to show confidence in the potential for new discoveries in Saskatchewan, and the rejuvenated interest in our oil shale underscores that optimism,” McMillan said. “Prior to this sale there were four oil shale special exploratory permits active in the Hudson Bay area. The addition of three new permits in this sale more than doubles the acreage under exploration.”

The next sale of Crown petroleum and natural gas dispositions will be held on Oct. 7.

Geographic location: Swift Current, Saskatchewan, Lloydminster Gull Lake Kindersley Kerrobert Hudson Bay Estevan

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