First a rig shows up near Radville, now that area tops February Crown land sale

Brian Zinchuk

Brian Zinchuk is editor and owner of Pipeline Online

Betts Drilling north of Estevan on Feb. 7. Photo by Brian Zinchuk

Every so often, interest in oil production near Radville starts getting attention. In recent weeks, a drilling rig showed up south of Radville, for the first time in a long time. And now, that area was the highlight of the Feb. 6 Crown land sale for petroleum and natural gas mineral rights.

And while the Radville area is getting attention, the Swift Current/Shaunavon area is not.

The Government of Saskatchewan’s Crown petroleum and natural gas public offering, held on Tuesday, Feb. 6, 2024, has brought in$10,042,113 for the province.

Of the 48 parcels posted for this offering, 44 parcels received acceptable bids. These bids covered 14,651.566 hectares.

Millennium Land (222) Ltd. made the highest bonus bid on a parcel in this offering, bidding $5,055,881.79, an average of $1,204 per hectare, for a 4,199-hectare license in the Estevan area, southeast of Radville. This license, located 26 kilometres southeast of Radville, adjacent to the Neptune Ratcliffe Beds Oil Pool, is prospective for oil in the Ratcliffe Beds.

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The highest bonus bid received on a lease in this area was $1,022,922, an average of $1,122 per hectare. This 912 hectare lease is located 9 kilometres southwest of Kipling, near the northern boundary of the Viewfield Bakken Oil Pool. The successful bidder was Saturn Oil & Gas Inc.

The highest dollars per hectare received on a parcel in this area was $2,710 per hectare, or a total of $175,214. This 65 hectare lease was awarded to Millennium Land (444) Ltd. and is located eight kilometres northeast of Alameda, adjacent to the Alameda East Frobisher Beds Oil Pool.

The Estevan area generated the most interest, raising $7,223,246 for 23 leases and one exploration license totaling 8,757 hectares.

Additionally, bids for leases and licenses in the Lloydminster area brought in $1,916,572 for this offering. These bids covered 17 leases and one exploration license totaling 5,375 hectares.

Acceptable bids in the Kindersley area generated $902,295 for two leases totaling 520 hectares.

The highest dollars-per-hectare bid received was $3,342 per hectare, for a total of $216,170. This 65-hectare lease is in the Kindersley area, northeast of Dodsland. This lease is prospective for heavy oil in the Mannville Group.

Elk Run Resources Ltd. was awarded both leases posted in this area. One lease received a bid of $770,511, or $2,366 per hectare and the other lease received a bid of $131,785, or $677 per hectare. These leases are located 16 kilometres northeast of Dodsland, adjacent to the Kelfield Mannville Sands Oil Pool.

Notably, there were no parcels posted in the Swift Current area of southwest Saskatchewan. This are has seen continuing diminishing activity, and for much of the winter drilling season, only one rig has been drilling for oil in the region – currently Whitecap Resources drilling northwest of Gull Lake. There are two rigs drilling for helium in that area, however.

This is the final public offering of six this fiscal year. The province has received $75.5 million in revenue for the 2023-24 fiscal year.

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