Southwest breaks record in February land sales

Record interest was posted in the Southwest and across the province in the February sale of Crown petroleum and natural gas rights.

During the Feb. 11 sale the Swift Current region generated a single sale record of $47 million in interest. The huge level of interest in the Southwest, driven by the emerging oil play in the Shaunavon area, nearly equalled the regional total of $48.8 million generated by the 12 sales held in 2006 and 2007. It also signalled an important turnaround following the December 2007 sale where the Swift Current area was lowest in the province with only $478,000 in activity.

Province wide the Feb. sale was also a single land sale record breaker, bringing in a phenomenal $197 million in interest, more than doubling the old record of $85 million set in 1994. The sales results show the Weyburn-Estevan area dominated the sales activity, bringing in $132 million.

Saskatchewan also established a new fiscal year record of $419 million, again nearly doubling the previous record of $202 million set back in 1994-95.

"These numbers are simply incredible and are a great start to 2008 for our province and our oil and gas industry," Energy and Resources Minister Bill Boyd said. "They speak to the dynamic investment climate for our oil and gas resources, and underscore the heightened interest in the rich Bakken oil play in southeast Saskatchewan and the emerging oil play in the Shaunavon area. They are also reflective of the confidence businesses have in our new government. This record land sale will also translate into more economic growth and job opportunities for Saskatchewan people."

February's sale included 16 exploration licences that sold for $120.5 million and 308 lease parcels that brought in $76.7 million. Another record shattered was the average price paid on a per hectare basis at $2,495, beating the old mark of $1,515 set in October.

The highest price paid for a single parcel was $30.7 million. Saskatoon Assets Inc. purchased a 2,900-hectare exploration licence in the Shaunavon area.

"We have a great oil and gas story to tell, and Premier Wall and I have been telling that story across the country," Boyd said. "Coming off a $250 million record calendar year in land sales, Saskatchewan and our leading industry are poised for excellent economic growth."