Southeast leads in August offering of oil, gas rights
August 3, 2017 9:09 am
The province’s southeast region was the focus of activity in August’s public offering of Crown petroleum and natural gas rights in Saskatchewan on Tuesday, representing more than $6 million of the $8 million in total revenue. This was the third sale of the current fiscal year, bringing the total to date for 2017-18 to $32 million.
On August 1, the Petroleum Services Association of Canada (PSAC) released its third update to its 2017 Canadian Drilling Activity Forecast, increasing its original forecasted number of 1,940 wells to be drilled in Saskatchewan to 2,794 wells drilled—a significant increase of 44 per cent.
“These figures, along with positive expectations by industry, suggest our oil and gas sector is regaining momentum after a prolonged period of transition,” Energy and Resources Minister Dustin Duncan said. “There’s no doubt that this kind of renewed activity in Saskatchewan’s oil patch bodes well not only for our communities that rely on this industry for jobs and growth, but also for our economy at large.”
Six exploration licences southwest of Radville received bonus bids on Tuesday totalling $1,605,454.05 for 17,612.02 hectares. Stomp Energy Ltd. bid $922,675.10 to acquire four of these exploration licences totalling 11,655 hectares and Millenium Land Ltd. bid $682,788.95 to acquire the other two licences totalling 5,957 hectares.
These parcels are prospective for multiple targets including the Ratcliffe Beds of the Madison Group and the Bakken, Torquay and Birdbear Formations.
Millennium Land Ltd. bid $442,163.51 to acquire a 64.75 hectare lease located southeast of Radville. The parcel is prospective for multiple targets, particularly the Bakken Formation and the Torquay Formation.
The next public offering of petroleum and natural gas rights will be held on October 3, 2017.