The Swift Current area enjoyed their best showing in a year and a half during the August sale of petroleum and natural gas rights.
The Southwest generated $1.8 million in activity to equal the interest produced during the December 2012 sale and helping turn around a series of quiet sales over 2013 and the start of 2014 where the region has produced just $7.31 million during 10 sales.
Province wide, the August sale of petroleum and natural gas rights generated $48.4 million, the second best total this year. Year to date the provincial totals have risen to $158 million, eclipsing the totals generated in 2013 ($67.4 million) and 2012 ($105.7 million).
The average price per hectare recorded during the sale was $1,916/hectare, the third highest on record. Saskatchewan's April 2008 sale holds the title for highest average price per hectare for a single sale at $2,725/hectare, closely followed by the February 2008 sale which produced a $2,495/hectare total.
“The Bakken and Shauanvon light-oil plays in southern Saskatchewan are both prone to spectacular single-parcel results that we experienced once again in this sale,” Economy Minister Bill Boyd stated in a press release. “However, we’re equally pleased about land acquisitions in the heavy oil-prone areas of the province that are consistent in sale-after-sale, year-after-year.
“By any measure, the volume of heavy oil in the province, estimated at 20 billion barrels of heavy oil in place, is impressive, but recovering this oil is a complex and capital-intensive process. The province applauds both the oil and gas industry and the research institutions providing innovation and investment in the continuing effort to maximize production from this resource.”
The Weyburn-Estevan region again led the province with $43 million in activity, followed by the Lloydminster area at $2.1 million. Slightly behind the Swift Current area's total of $1.8 million was the Kindersley-Kerrobert area with $1.5 million in activity.
Saskatchewan's next sale of Crown petroleum and natural gas rights will be held on Oct. 6.