With $48.4 million in revenue raised at Saskatchewan’s August sale of petroleum and natural gas rights, the 2014 calendar year total for land sales is now $158 million, already surpassing land sale revenue totals for both the 2012 and 2013 calendar years with two sales remaining.
Industry continues to place a premium on Saskatchewan oil and gas rights. The average price per hectare received for the sale was $1,916/hectare, the third highest on record. The April 2008 sale holds the title for highest average price per hectare for a single sale at $2,725/hectare, followed closely by the February 2008 sale at $2,495/hectare.
“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 said. “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 August sale saw the Weyburn-Estevan area receive the most bids with sales of $43 million. The Lloydminster area was next at $2.1 million, followed by the Swift Current area at $1.8 million and the Kindersley-Kerrobert area at $1.5 million. The highest price paid for a single parcel was $17.1 million. Standard Land Company Inc. acquired the 2,201-hectare exploration licence east of Estevan. The highest price on a per-hectare basis was $10,136. Plunkett Resources Ltd. bid $634,520 for a 62.6-hectare lease southeast of Estevan.
The next sale of Crown petroleum and natural gas rights will be held on October 6, 2014.