Regina 鈥� October's public offering of Crown petroleum and natural gas rights in Saskatchewan on Oct. 3 showed a surge in exploration licenses, bringing in the bulk of the total $19 million in land sales revenue this time around. It looks like a new play is afoot west of Estevan, as licences totalled $17 million there.
With two sales remaining, the current revenue for the 2017-18 fiscal year is now $51 million, surpassing the previous fiscal year's final total of $50 million.
鈥淎long with increases in provincial drilling forecasts, this is an indicator of a noticeable upward trend in Saskatchewan's resilient oil patch,鈥� said Energy and Resources Minister Nancy Heppner. 鈥淎s this key economic sector continues its ongoing recovery, Saskatchewan will continue to provide a stable, competitive and responsible investment climate for energy resource development that ranks among the best in the world.鈥�
Nineteen exploration licences west of Estevan received bonus bids totalling $17,096,388 for 112,568 hectares. Four companies were successful in acquiring these licences. Scott Land & Lease Ltd. bid $7,944,215 for seven exploration licences totalling 41,343 hectares. Stomp Energy Ltd. bid $5,554,245 for five exploration licences totalling 22,954 hectares. Plunkett Resources Ltd. bid $3,266,732 for five exploration licences totalling 42,249 hectares. Lexterra Land Ltd. bid $331,196 for two exploration licences totalling 6,022 hectares.
These parcels are prospective for multiple targets including the Ratcliffe Beds of the Madison Group and the Bakken, Torquay, Bird bear, Winnipegosis and Red River Formations.
The top price paid for a single licence was $3,090,323, paid by Scott Land & Lease Ltd. for a 5,828 hectare parcel situated adjacent to the Hummingbird Bakken Oil Pool, 30 kilometres south of Radville. This was also the top price paid in the Estevan area.
Estevan Area
The total bonus received in the area was $17,286,002, an average of $153/hectare. This compares to $6,636,484, an average of $277/hectare at the last offering.
Top purchaser of acreage in this area was Scott Land & Lease Ltd., who spent $7,944,215 to acquire seven licences.
Top price paid for a single lease in this area was $155,255, paid by Scout Energy Ltd. for a 227 hectare parcel situated adjacent to the Hoffer Ratcliffe Beds Oil Pool, 10 kilometres west of Oungre.
The highest dollar per hectare in this area was received from Buffalo Hill Resources Ltd., who paid $1,312/hectare for a 16 hectare parcel located within the Wordsworth Frobisher-Alida Beds Pool, 20 kilometres southwest of Carlyle.
Kindersley area
On most days, Kindersley continues to be the most active drilling region in Saskatchewan, and that was bore out by the sale of 36 leases in the area, out of 44 posted in the area. The total bonus received in the area was $1,108,063, an average of $137/hectare. This compares to $584,771, an average of $187/hectare at the last offering.
Top purchaser of acreage in this area was Gear Energy Ltd., who spent $274,212 to acquire seven lease parcels.
Top price paid for a single lease in this area was $142,451.20, paid by Gear Energy Ltd. for a 178 hectare parcel situated adjacent to the Milton Bakken Sand Oil Pool, 35 kilometres west of Kindersley. This is the highest dollar per hectare in this area at $800.00/hectare.
Lloydminster area
Synergy Land Services Ltd. bid $575,475.81 to acquire a 259 hectare lease located southeast of Lloydminster. This parcel is prospective for heavy oil in the Mannville Group, and is situated three kilometres north of the Neilburg Mannville Sands Oil Pool, 35 kilometres southeast of Lloydminster. This is the highest dollar per hectare in the offering at $2,221.88/hectare.
The total bonus received in the Lloydminster area was $980,479, an average of $1,262/hectare. This compares to $422,361, an average of $242/hectare at the last offering. Four leases in total were posted, and three sold, totalling 777 hectares.
Swift Current Area
Eight leases were posted and three sold in the Swift Current area, totalling hectares.
The total bonus received in the area was $96,788.03, an average of $127/hectare. This compares to $223,689, an average of $216/hectare at the last offering.
Top purchaser of acreage in this area was Jarrod Oils Ltd., who spent $68,000 to acquire two lease parcels.
Top price paid for a single lease in this area was $52,000, paid by Gear Energy Ltd. for a 259 hectare parcel situated adjacent to the Main Success Cantuar and Roseray Sands Oil Pools, 25 kilometres northwest of Swift Current. This is the highest dollar per hectare in this area at $201/hectare.
The next public offering of petroleum and natural gas rights will be held on December 5, 2017.
