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Thursday, 06 December 2012 09:08

Sask. land sales top $100 million for 2012: Gull Lake property the high single price

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The December sale of Crown petroleum and natural gas and oil sands rights generated $11.5 million in revenue for the province, bringing final land sale revenues for the 2012 calendar year to $105.7 million.

 

Industry bid an average of $598 per hectare for oil and gas rights, which is more than double the $218 per hectare received by Alberta in their last sale of oil and gas rights. This sale also featured five oil sands special exploratory permits north of the Primrose Lake Air Weapons Range, two of which received acceptable bids.

"It is encouraging that more than $1 million in bonus bids was received for two of the oil sands permits that were offered in this sale," Energy and Resources Minister Tim McMillan said. "In addition to a bonus bid, these permits require a minimum work commitment expenditure to be spent in exploration over the five-year term of the permits. The province is cautiously optimistic that the results of this exploratory work will provide further insight into the potential of the resource in the province."

December's sale included 89 lease parcels that brought in $8.9 million in bonus bids, two petroleum and natural gas exploration licences that sold for $1.6 million, and two oil sands special exploratory permits that received $1 million.

The Weyburn-Estevan area received the most bids with sales of $6.1 million. The Lloydminster area was next at $2.6 million, followed by the Swift Current area at $1.8 million and the Kindersley-Kerrobert area at $982,890.

The highest price for a single parcel was $1.6 million. Scott Land & Lease Ltd. acquired this 1,327-hectare exploration licence south of Gull Lake.

The highest price on a per-hectare basis was $8,412. Stomp Energy Ltd. bid $136,188 for a 16-hectare lease parcel east of Lloydminster.

The next sale of Crown petroleum and natural gas dispositions will be held on February 4, 2013.

Read 11762 times Last modified on Friday, 07 December 2012 08:08