Brian Zinchuk is editor and owner of Pipeline Online
Land sales are up, but not enormously so. Photo by Brian Zinchuk
The October crown land sale has shown a pickup in interest compared to last year, but bids were put in several weeks ago, it likely does reflect the recent sharp upturn in oil prices. The October public offering of Crown petroleum and natural gas rights was held on Oct. 5 and generated $1,876,807 in revenue for the province.
Land sales are a leading indicator of future activity in the oilpatch.
Overall, the total lease and licence bids covered 14,321 hectares and the average bonus bid was $131 per hectare. Of the total 81 parcels posted, 59 parcels received acceptable bids. A total of 78 leases were posted province-wide, and three exploratory licences. Of those, 58 leases sold, totaling 7,037 hectares for an average of $242 per hectare.
A singular exploration licence, posted in the Estevan area received $171,886, or $23.60 per hectare. It was also the highest bid for a parcel in this offering. This licence is located west of Radville and is prospective for oil in the Bakken Formation. This licence was awarded to Petro-Lin Energy Corporation.
Nearby oil pools include the Freda Lake Ratcliffe Beds Oil Pool, Ceylon Bakken Oil Pool and Hardy South Red River Oil Pool.
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That region has seen on-again, off-again interest over the years, with the most recent being Crescent Point buying large tracts of exploratory licenses, prospective for the Lodgepole formation, in 2017.
The highest dollars per hectare received on a lease in this offering is $2,489 per hectare. This 45-hectare lease was awarded to Ferret Energy Limited and is located 14 kilometres southwest of Stoughton, within the Huntoon North Frobisher Oil Pool. It is prospective for oil in the Frobisher Beds of the Madison Group.
Lloydminster area
In the Lloydminster area, the total bonus was $271,996, an average of $224 per hectare. This compares to $426,051, an average of $275 per hectare at the last offering.
The highest bonus bid received on a parcel in this area was $137,892 or $142 per hectare. This 971-hectare lease was awarded to Prairie Land Investment Services Ltd. and is located three kilometres south of Macklin.
The highest dollars per hectare received on a parcel in this area was $548 per hectare, a total bonus bid of $134,103. This 244.5-hectare lease was awarded to Elk Run Resources Ltd. and is located eight kilometres southwest of Lashburn, near the Buzzard Lloydminster Oil Pool.
Kindersley area
The total bonus received in this area was $88,254, an average of $89 per hectare. This compares to $83,227, an average of $80 per hectare at the last offering.
The highest bonus bid and dollars per hectare received on a parcel in this area was $41,117 or $160 per hectare. This 257-hectare lease was awarded to Synergy Land Services Ltd. and is located 25 kilometres southeast of Elrose, near the Forgan Viking Oil Pool.
Swift Current area
The total bonus received in this area was $159,029, an average of $305 per hectare. There were no parcels posted in the Swift Current area in the last offering.
The highest bonus bid and dollars per hectare received on a parcel in this area was $150,164 or $576 per hectare. This 261-hectare lease was awarded to Crescent Point Energy Corp. and is located 24 kilometres west of Swift Current, adjacent to the Beverley Roseray Oil Pool.
Estevan-Weyburn area
The total bonus received in this area was $1,357,527, an average of $117 per hectare. This compares to $2,615,713, an average of $96 per hectare at the last offering.
The Estevan area brought in $1,357,527 for 50 parcels totalling 11,591 hectares.
The highest bonus bid received on a lease is $161,373.56 for a 257-hectare lease in the Estevan area.
Silver Hawk Resources Ltd. acquired this lease that is located five kilometres southwest of Roche Percee, near the Roche Percee Bakken Oil Pool, and is prospective for oil in the Bakken Formation.
The highest dollars per hectare received on a parcel in this area was $2,489 per hectare. This 45-hectare lease was awarded to Ferret Energy Ltd.
This public offering was the fourth of six sales for the current fiscal year. The next oil and gas public offering in Saskatchewan is scheduled for December 7, 2021.
- 0079 Ministry of Energy Business_incentive PO0079 Ministry of Energy Business_incentive PO
- 0078 LHOS 20240078 LHOS 2024
- 0077 Caprice Resources Stand Up For Free Speech0077 Caprice Resources Stand Up For Free Speech
- 0053 Kingston Midstream Westspur Alameda0053 Kingston Midstream Westspur Alameda
- 0076 Latus only0076 Latus only
- 0073 SaskWorks-Pipeline Online0073 SaskWorks-Pipeline Online
- 0063 Turnbull Excavating hiring crusher0063 Turnbull Excavating hiring crusher
- 0061 SIMSA 2024 For Sask Buy Sask0061 SIMSA 2024 For Sask Buy Sask
- 0058 Royal Helium Steveville opens anonymous rocket0058 Royal Helium Steveville opens anonymous rocket
- 0055 Smart Power Be Smart with your Power office0055 Smart Power Be Smart with your Power office
- 0051 JML Hiring Pumpjack assembly0051 JML Hiring Pumpjack assembly
- 0049 Scotsburn Dental soft guitar0049 Scotsburn Dental soft guitar
- 0046 City of Estevan This is Estevan0046 City of Estevan This is Estevan
- 0041 DEEP Since 2018 now we are going to build0041 DEEP Since 2018 now we are going to build
- 0032 IWS Summer hiring rock trailer music
- 0022 Grimes winter hiring
- 0021 OSY Rentals S8 Promo
- 0018 IWS Hiring Royal Summer
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0011
- 0006 JK Junior
- 0002 gilliss casing services0002 gilliss casing services
- 9002 Pipeline Online 30 sec EBEX9002 Pipeline Online 30 sec EBEX
- 9001