Crossroads Staff
Saskatchewan has four main oil and gas regions and the Kindersley area has generated the most revenue after the August Crown sale of licences and leases.
The August public offering of Crown petroleum and natural gas rights on Aug. 14 generated a total of $6.54 million and it brings the total to approximately $25 million after the first three sales of the 2018-19 fiscal year.
The Estevan area often generates the most revenue from Crown land sales, but the Kindersley area led the way in the August sale with 79 leases sold for a total of $3.74 million. There are six sales held each year with the April sale being the first in a new fiscal year. Sales are held every other month.
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After Kindersley, the Estevan area was second with a total of $2.69 million in revenue followed by the Swift Current area at $93,333 in revenue and the Lloydminster area at $10,983 in revenue. The next public offering will be held in October.
“We continue to work hard to develop a positive investment climate for the petroleum industry in Saskatchewan and, as a result, the industry recognizes our royalty regime is stable and compares favourably with other jurisdictions,” said Bronwyn Eyre, minister of energy and resources in Saskatchewan, in an official statement after the August sale. “We are committed to working closely with industry to provide as much certainty as possible for current and future investments.”
In the August sale, the top purchaser of acreage in the province was Turnstone Energy Inc. and the company spent more than $1.5 million to acquire 28 lease parcels. Windfall Resources Ltd. paid the most for a single lease.
Windfall Resources paid $568,649 to acquire a roughly 162-hectare parcel located northeast of Midale, Sask. The same lease parcel represented the top price paid on a per-hectare basis from the August sale, and it amounted to a total of $3,513 per hectare for the lease.
In the Kindersley area, Turnstone Energy was the top purchaser of acreage in the area with its acquisition of 28 lease parcels at $1.5 million. Saturn Oil & Gas Inc. paid the top price for a single lease parcel at $235,952 for a 259-hectare lease located north of Eston.
The highest amount paid on a per-hectare basis was by Teine Energy Ltd. The company paid $1,236 per hectare for a 32-hectare parcel located northwest of Kindersley. A total of 79 lease parcels were sold in the Kindersley area in the August sale.
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