April’s oil and gas public offering generates $11.1 million

The Government of Saskatchewan’s Crown petroleum and natural gas public offering, held on April 4, raised $11,113,459 for the province.

Of the 147 parcels posted for the sale, 105 received acceptable bids. These bids covered 22,424 hectares, and the average sale price was $495.59 per hectare.

The Estevan area saw the most interest, bringing in $6,439,086 for 50 leases totalling 4,346 hectares.

The highest bonus bid in this area, and the entire province, was $2,615,989 for a 258.692-hectare lease located 19 kilometres northeast of Midale. It was awarded to Buffalo Hill Resources Ltd. The $10,112.37 per hectare bid was the highest per hectare amount received on a parcel in the sale.

Another lease 15 kilometres northeast of Midale received a bid of $1,255,202, or $6,475.02 per hectare.

The 193.853-hectare lease was awarded to Midale Petroleums Ltd.

These leases are prospective for oil in the Frobisher Beds and the Bakken Formation.

Fifty of the 53 leases posted in the southeast received bids.

The Lloydminster area also saw considerable interest, bringing in $3,294,125 for 36 leases and two exploration licences totalling 9,617 hectares, an average of $342.53 per hectare. A total of 63 leases and three licences were posted.

The highest bonus bid received on a lease in this area was $607,585, or $1,376.79 per hectare. This 441.306-hectare lease is located 11 kilometres north- east of Maidstone, near the Rush Lake Mannville Sands Oil Pool and the Dee Valley East Mannville Sands Oil Pool. The successful bidder was Scout Energy. An exploration licence, totalling 747.744 hectares, received a bonus bid of