Crossroads Staff
The December public offering of Crown petroleum and natural gas rights has garnered nearly $9.6 million, to bring the fiscal year’s total to more than $61 million.
December’s land sale generated $9.55 million in revenue to bring the total for land sales in the government’s 2017-18 fiscal year to nearly $61.15 million. The February land sale will close out the fiscal year. The 2017-18 land sale revenue has already surpassed the total revenue in 2016-17.
The province garnered a total of $50.17 million in the 2016-17 fiscal year, so it’s already ahead at $61.15 million in 2017-18 with the February sale yet to come. Stability has been credited for an upward trend in the industry.
“Saskatchewan’s favourable policy and operating environment provides the industry with the kind of stability it seeks,” Nancy Heppner, the province’s minister of energy and resources, said in an official statement. “Drilling activity, oil and gas related revenue, and industry investments in new exploration and development are all trending upward in Saskatchewan for 2017. We will do our part to help sustain this growth.”
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The June 2017 land sale of $22.84 million and October 2017 land sale of $19.47 million were the two highest totals since sales held in 2014. While the December 2017 land sale was only $9.55 million, it was the third highest total from six sales in the 2017 calendar year.
In 2017, the calendar year started off with sales of only $1.73 million in February and $1.37 million in April. The 2017 sales from February and April were the lowest totals on record since land sales from 1991 and the mid-1970s. The West Texas Intermediate price of oil has held steadily in the $50-60 range in recent weeks.
The Estevan area led the December 2017 sale with a total of $5.08 million in revenue. The Lloydminster area was second with more than $3.11 million in revenue while the Kindersley area was third at $949,462 and the Swift Current area was last at $403,051.
Stomp Energy Ltd. was the top purchaser of acreage in the province acquiring 14 lease parcels for a total of nearly $2.48 million. Stomp Energy also paid the highest price for a single lease parcel at $1.64 million for a 259-hectare parcel located south of Wilkie.
The City of Medicine Hat paid the top price for a single licence at $68,013 for a 1,036-hectare parcel located northeast of Shaunavon. The highest price paid on a per-hectare basis was by Windfall Resources Ltd., a company that paid $13,666 per hectare for a 16-hectare parcel located northeast of Maidstone.
In the Kindersley area, Marquee Land Services Ltd. was the top purchaser of acreage acquiring three lease parcels for a total of $525,058. The company also paid the highest price for a single lease parcel, but the company acquired two parcels at the same price.
For each of the two lease parcels, Marquee Land Services paid $233,359 and it was the highest price paid for any parcels.
The two 259-hectare parcels are located west of Kindersley and the parcels also represent the highest price paid on a per-hectare basis at $901 per hectare. The province’s next Crown land sale takes place on Feb. 6.
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