Brian Zinchuk is editor and owner of Pipeline Online
Graphic courtesy Saskatchewan Ministry of Energy and Resources
REGINA – Crown land sales are a leading indicator of future development, and while the Aug. 6 petroleum and natural gas public offering showed extensive interest in southeast Saskatchewan, and some interest in northwest and west central Saskatchewan, it showed no interest in southwest Saskatchewan.
The Crown land sale held on Tuesday, August 6, 2024, raised $7,208,880 for the province, with the Estevan area generating the most revenue.
Notably, there was not one single lease or license posted in Shaunavon/Swift Current area of southwest Saskatchewan. This coincides with continually diminishing oil drilling activity in the region, with just one rig drilling for oil near Frontier on Aug. 29. That one-rig level of drilling for oil has been pretty consistent much of this year. At times, there have been more rigs drilling for helium than oil in that region.
Indeed, according to the Ministry of Energy and Resources, there have been no parcels posted in the southwest this entire calendar year of 2024.
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One hundred and eight parcels were posted for this offering, and 96 parcels received acceptable bids for leases. No exploratory licenses were posted. These bids covered 14,374 hectares.
The Estevan area generated the most revenue, bringing in $4,716,387 for 68 leases totalling 5,710 hectares. There were 70 parcels posted, and all but two sold.
The highest bonus bid of the sale went to Saturn Oil & Gas Inc., which offered $895,409 for a 442 hectare lease located north of Stoughton. The bid works out to $2,027 per hectare.
Millennium Land (444) Ltd. made the highest dollars-per-hectare bid, offering $7,218 per hectare for a 32 hectare lease located six kilometres west of the village of Frobisher and bidding a total of $233,920 for the lease. It was within the Steelman Frobisher Beds Oil Pool.
The Lloydminster area generated the next-highest amount of revenue, generating $1,678,241 for 19leases totalling 3,803 hectares. There were 29 parcels totalling 5,371 hectares posted, and 19 purchased.
The highest bonus bid and the highest dollars per hectare received on a lease in this area is $419,233, an average of $1,557 per hectare. This 269 hectare lease was awarded to Whispering Hills Resources Ltd. and is located 19 kilometres west of Turtleford, within the Celtic Mannville Sands Oil Pool.
Nine bids in the Kindersley area brought in $814,251 in revenue for nine leases totalling 4,861hectares. All posted leases were purchased.
The highest bonus bid and the highest dollars per hectare received on a lease in the Kindersley-Kerrobert area is $442,632, an average of $1,716 per hectare. This 258 hectare lease was awarded to Teine Energy Ltd. and is located 10 kilometres southwest of Elrose, between the Plato Viking Sand Oil pool and the Elrose Viking Sand Oil Pool.
After three public offerings this fiscal year, government has raised $30,077,586 in revenue, according to the Ministry. There are six scheduled public offerings each fiscal year. The next scheduled offering in Saskatchewan is October 1,2024.
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- 0022 Grimes winter hiring
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