Saskatchewan continues its lacklustre Crown land sales this year, with just $1.5 million brought in in the Aug. 15 auction.
With three of six land sales under the province’s belt for this fiscal year, the total has been $9.5 million.
In a press release, Saskatchewan’s Ministry of Energy and Resources pointed out that the province has averaged $637 per hectare for the current fiscal year, higher than similar public offerings held to date in Alberta and British Columbia, which average $155.63 per hectare and $87.46 per hectare, respectively.
However, that average was not reflected in the most recent Saskatchewan sale, which saw an average of $281.62 per hectare.
In comparison, British Columbia, which holds its land sales monthly as opposed to every two months like Saskatchewan, announced it brought in $192,000 for its Aug. 14 sale.
Sister publication Pipeline News North reported that BC has taken in roughly $2.8 million in bonus bids this year — far short of the nearly $60 million it saw through the same time last year.
The highest bonus bid received by Saskatchewan in this offering was $261,410 for a 258-hectare parcel west of Luseland, purchased by Millennium Land (333) Ltd., and is prospective for oil in the Mannville Group. This lease is partially located within the Plover Lake Mclaren Sand Oil Pool, 18 kilometres west of Luseland.
The highest dollars per hectare was $1,828 for a 129-hectare parcel, totalling $235,932. This parcel, located east of St. Walburg, was purchased by Silver Hawk Resources Ltd. and is also prospective for oil in the Mannville Group.
Two leases in the Kindersley area consisting of 130 hectares received a total offer of $219,850. These parcels are situated southwest of Major, and were purchased by Millennium Land (444) Ltd. and Millennium Land (555) Ltd.
There were no exploratory permits posted in this land sale.
In southeast Saskatchewan, all 17 leases posted were sold, for a total of 1,915 hectares. That brought in $418,982, or $219 per hectare. The highest bonus bid and the top dollars per hectare received in this area was for a parcel partially situated in the Hastings Frobisher Beds Oil Pool, 11 km northeast of Oxbow. This 194 hectare lease was purchased by Millennium Land (555) Ltd. for $774 per hectare or a total of $150,173.
In the Swift Current area, only one parcel was posted, but it did not sell.
The Kindersley area had 37 parcels posted, totalling 4,178 hectares. However, only 24 sold, comprising 2,751 hectares. That brought in the lion’s share of the revenue, at $789,961, averaging $287 per hectare.
The highest dollars per hectare received in this area was $1,766 per hectare for a 65 hectare parcel located 12 kilometres southwest of Major, adjacent to the Hoosier North Viking Gas Pool. This lease was purchased by Millennium Land (444) Ltd.
The Lloydminster region had 12 parcels posted but eight sold. This brought in $337,570, averaging $409 per hectare, substantially more on a per hectare basis than the other regions.
Requests for petroleum and natural gas rights in each public offering are submitted electronically from oil and gas companies to the Ministry of Energy and Resources through the Integrated Resource Information System (IRIS).
Later this year, new online training material, which was developed in conjunction with stakeholders, will be introduced. This will help industry use IRIS as effectively as possible and align with the Government of Saskatchewan's objective of achieving regulatory excellence.
The scheduled date for the next public offering will be October 1, 2019.