REGINA – For the first time since June, 2019, a Crown land sale for oil and gas mineral rights exceeded $6 million. But while the total dollar value was up significantly compared to sales over the last 2.5 years, some parcels went for exceedingly low dollar values, as low as $2.40 per hectare.

The Feb. 1 Crown land sale brought in $6,144,244 in revenue for the province. This is the highest oil and gas public offering result of 2021-22 and significantly exceeds the amount of revenue raised in other oil and gas public offerings during 2020-21, a period which saw the oil and gas industry laid low by the COVID-19 pandemic. The February public offering completes the scheduled 2021-22 fiscal year oil and gas public offerings, with total revenue of nearly $15 million, according to the Saskatchewan Ministry of Energy and Resources.

This compares $1,400,142, an average of $321/hectare received at the last offering held on Dec. 7, 2021.

Of the 84 parcels posted, 75 parcels received acceptable bids. Total bids covered 11,493 hectares. The average bonus bid was $535 per hectare with the highest acceptable bid at $7,814 per hectare.

Of that, 81 leases totalling 10,000 hectares were posted, with 72 parcels totalling 8,452 hectares went for $5,060,757. The lease parcels averaged $599 per hectare.

There hasn’t been a lot of exploratory licence action in recent years, but this sale had three parcels posted and all three sold. The licences totalled 3,041 hectares for $1,083,487. The licences averaged $356 per hectare.

Lloydminster

In the Lloydminster area, three leases were posted totaling 567 hectares. All three sold, but the bonus was just $8,384, or $15 per hectare. In other words, they picked up the mineral rights for 8.75 quarter sections for substantially less that the cost of hiring a drilling rig for a single day.

The highest bonus bid received on a lease in this area was $3,323 for a 261 hectare lease is located six kilometres southeast of North Battleford. That worked out to $12.73 per hectare. This was one of a number of leases that went for low numbers. The mineral rights for a section of land were acquired for less than the cost of hiring a service rig for six hours.

This lease was awarded to Lexterra Land Ltd. That area near North Battleford is essentially the undiscovered country, totally new development. It would also be relatively close to the Northlands Yellowhead Power Station, a baseload gas-fired power plant.

The highest dollars per hectare received on a parcel in this area was $37/hectare. This 48 hectare lease was awarded to Caltex Resources Ltd and is located 15 kilometres southwest of Turtleford, within the Westhazel Mannville Oil Pool.

Kindersley-Kerrobert

In the Kindersley-Kerrobert area two leases were posted and purchased totalling 486 hectares. The bonus was $62,764, or $129 per hectare.

West central Saskatchewan was also home to two of those exploratory licenses, totalling 2,075 hectares. They accounted for nearly all the dollars expended on licences in the sale, collecting $922,424. They brought in $445 per hectare.

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The highest bonus bid and dollars per hectare received on a lease in this area was $35,865 or $158 per hectare. This 227 hectare lease was awarded to Teine Energy Ltd. and is located 15 kilometres southeast of Plenty, adjacent to the Dodsland Viking Oil Pool.

Prairie Land & Investment Ltd. bid $922,424 for two exploration licences totalling 2,075 hectares posted in this area. These licences are located 19 kilometres southwest of Major, near the Hoosier North Viking Pool.

The highest bonus bid received on an exploration licence in the sale was $501,130 for a 1,037-hectare licence in the Kindersley Area by Prairie Land & Investment Services. This was also the highest dollars per hectare received on a licence at $483 per hectare.

Swift Current-Shaunavon

In the Swift Current-Shaunavon area, 12 leases were posted, and all were sold. Those dozen parcels totalled 908 hectares, but only sold for $2,183, or $2.40 per hectare. In other words, the mineral rights for 14 quarters of land went for less than the cost of running a service rig for four hours.

Canadian Natural Resources Limited was the most active bidder in this area picking up 10 leases totalling 650.157 hectares for $1,983. These leases are located approximately 21 kilometres west of Fox Valley.

Estevan-Weyburn

Over in southeast Saskatchewan there were 64 parcels posted for lease totalling 8,039 hectares. Of that, 55 parcels sold, totaling 6491 hectares for $4,987,426. The average was $768 per hectare.

The remaining exploratory license was in the southeast, totalling 966 hectares. It went for $161,063, or $167 per hectare.

The highest bonus bid received on a lease in this area was $528,018 or $2,715 per hectare. This 195 hectare lease was awarded to Midale Petroleums Ltd. and is located 13 kilometres northwest of Alameda, within the Steelman Frobisher Oil Pool. This bid was also the highest across the province for this sale.

Millennium Land Ltd. bid $7,814 on two parcels located three kilometres southeast of Lampman, within the Steelman Frobisher Oil Pool. This is the highest dollars per hectare received on a parcel in this area. That area has seen some of the most prolific drilling activity in southeast Saskatchewan in recent years.

Silver Hawk Resources Ltd. bid $161,063, or $167/hectare to pick the lone exploration licence posted in this area. This 966 hectare licence is located 22 kilometres north of Stoughton, near the north end of the Viewfield Bakken Oil Pool.

The first sale of the new 2022-23 fiscal year is scheduled for April 5, 2022, and features 207 leases covering 26,634 hectares and one exploration licence covering 812 hectares.

 

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  • 0025 Kendalls
  • 0026 Buffalo Potash Quinton Salt
  • 0023 LC Trucking tractor picker hiring mix
  • 0022 Grimes winter hiring
  • 0021 OSY Rentals S8 Promo
  • 0019 Jerry Mainil Ltd hiring dugout
  • 0018 IWS Hiring Royal Summer
  • 0014 Buffalo Potash What if PO
  • 0015 Latus Viro PO Ad 01
  • 0013 Panther Drilling PO ad 03 top drive rigs
  • 0011
  • 0006 JK Junior
  • 0004 Royal Helium PO Ad 02
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