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06/09/2017
Successful June Sale for Provincial Petroleum and Gas

$22.8 Million was generated for the Province this week through the Crown petroleum and natural gas rights sale. This was spearheaded by a strong interest in an area prospective for heavy oil Northeast of Lloydminster. According to the province, the total for the 2017 fiscal year to date is $24 million after two sales. The fiscal year's current average price per hectare for Saskatchewan parcels is $828.81, almost double Alberta’s average of $470.71 for conventional oil and gas parcels, and comes in the wake of recent upward trends in provincial drilling activity. Millennium Land Ltd. bid $4,002,780 to acquire a 1,327-hectare exploration licence located Southwest of Midale. The parcel is prospective for multiple targets, particularly the Bakken Formation and the Three Forks Group/Torquay Formation. Two parcels northeast of Lloydminster in the St. Walburg area received bonus bids totalling $9,736,304.69 for 1,295 hectares, with one of these parcels receiving the highest dollar-per-hectare at $8,115.76; these parcels are prospective for heavy oil in the Mannville Group, with well logs showing significant potential for the application of thermal recovery methods. The next public offering of petroleum and natural gas rights will be held on August 1.

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