The October sale of petroleum and natural gas rights in Saskatchewan brought in $9.1 million in revenue, with an average price paid of $524 per hectare.
“There has been a shift in focus by industry from purchasing dispositions to drilling those purchases in order to bring them into production,” Energy and Resources Minister Tim McMillan said.
“However, land sales have remained stable, averaging $11 million per sale over the past year, with both Alberta and British Columbia experiencing similar trends in land sale activity.”
Year-to-date revenue from the five land sales held in 2013 is $53.5 million.
The Estevan-Weyburn area received the most bids, with sales of $5.0 million. The Lloydminster area was next at $2.0 million, followed by the Swift Current area at $1.1 million and the Kindersley-Kerrobert area at $1.0 million.
The highest price paid for a single parcel was $618,000. Villanova 4 Oil Corp. acquired the 194-hectare lease southeast of Weyburn.
The highest price on a per-hectare basis was $12,504. Ranger Land Services Ltd. bid $202,436 for a 16-hectare lease east of Lloydminster.
“It’s worth noting that oil production is currently 3.0 per cent higher than last year, which itself was a record year,” McMillan said. “This confirms that industry continues to invest with confidence in Saskatchewan.”
The next sale of Crown petroleum and natural gas dispositions will be held on December 2.