Crown land sale back to usual range after a big jump two months ago

Brian Zinchuk

Brian Zinchuk is editor and owner of Pipeline Online

L&C Trucking delivered some pipe to this rig south of Oxbow last summer. Southeast Saskatchewan saw the bulk of Crown land sales on June 7. Photo by Brian Zinchuk

REGINA – After a big jump in the previous Crown land sale, the June sale fell back to a more sedate pace, typical of the last several years.

The June 7 public offering of Crown petroleum and natural gas rights raised $2,934,410 for the province, representing an increase of $2.4 million compared to the June 2021 offering.

The revenue generated from the June and April sales totals $22.2 million, exceeding the $15 million raised during the entirety of the 2021-22 fiscal year, according to the Ministry of Energy and Resources. The previous five sales raised $19 million in April 2022, $6.1 million in February 2022, $1.4 million in December 2021, $1.9 million in October 2021 and $3.1 million in August 2021.

Of the 70 parcels totaling 8,685 hectares posted for the June 2022 oil and gas public offering, 53 received acceptable bids, which covered 6,332 hectares. The average bonus bid was $463 per hectare with the highest acceptable bid at$6,180 per hectare on a 32 hectare lease, 14 kilometres northeast of Lampman. It went for a total of $199,188. Ferret Energy Ltd. was the purchaser.

The Estevan area saw the most interest, bringing in $2,645,873 for 38 parcels covering 4,649 hectares. The highest bonus bid in this offering was $641,752 for a 388 hectare lease in the Estevan area, northeast of Stoughton. It was an average of $1,655/hectare for that lease, which was awarded to Crescent Point Energy Corp. and is located 21 kilometres north of Stoughton.

Southeast Saskatchewan had 50 leases posted totalling 5,323 hectares. From that, 37 leases sold, averaging $536/hectare and totalling $2,043,669.

An exploration license posted in the Estevan area received a bid of $602,204. That was the only exploration license posted in the sale. Silver Hawk Resources Ltd. bid $719.67/hectare to pick up that only exploration licence posted in this offering. This 837 hectare licence is located 22 kilometres north of Stoughton.

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In the Lloydminster area, nine leases were posted totalling 919 hectares. Eight of those sold, totalling 855 hectares and averaging $226 per hectare.

The highest bonus bid received on a lease in this area was $131,467, an average of $622/hectare, for a 211 hectare lease. This lease was awarded to Gear Energy Ltd. and is located approximately 14 kilometres northeast of Maidstone, within the Rush Lake Mannville Oil Pool.

The highest bid on a per hectare basis was $788/hectare for a 16 hectare lease located two kilometres east of Lloydminster. This lease was awarded to Avalon Oil & Gas Ltd and is adjacent to the Lloydminster Colony Gas Pool.

West central Saskatchewan saw 10 leases posted totaling 1,606 hectares. Of those, seven sold, totaling 828 hectares. That brought in $95,598, or and average of $115/hectare.

The highest bonus bid and dollars per hectare received on a lease in this area was $65,851 or $254 per hectare. This 260 hectare lease was awarded to Teine Energy Ltd. and is located seven kilometres northwest of Marengo, within the Milton Viking Gas Pool.

There were no parcels posted in southwest Saskatchewan.

The June sale is the second of six oil and gas public offerings scheduled for 2022-23 fiscal year. The next sale is scheduled for August 9, 2022 and will feature 93 leases covering 8,702 hectares.

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