Saturday August 02, 2014

QUESTION OF THE WEEK

Survey results are meant for general information only, and are not based on recognised statistical methods.




Southeast generates $46.6 million for land sale

License Comments

The February sale of petroleum and natural gas rights generated $50.7 million in revenue for the provincial government – the second-highest February sale on record.

According to figures for the sale released on February 6, the Estevan-Weyburn area received the most bids, with sales of $46.6 million. The Lloydminster region was next at $2.7 million, followed by the Swift Current area at $731,874, and the Kindersley-Kerrobert area at $707,351.

“The addition of 82 leases and exploration permits in this sale shows industry continues to recognize Saskatchewan as a top jurisdiction to invest in,” said Energy and Resources Minister Tim McMillan.

The highest price paid for a single parcel was $14.1 million. Stomp Energy Ltd. acquired the 2,072-hectare exploration licence north of Oungre. Stomp spent more than $40.1 million to acquire five lease parcels and five exploration licences through the sale.

The top price paid for a single lease was $4,182,256.89, by the Sandstone Land and Mineral Company, for a 259-hectare (640-acre) parcel situated within the Viewfield Bakken Pool, located seven kilometres north of Lampman.

The average price paid this sale was $1,816 per hectare.

McMillan admitted to Lifestyles that the sale numbers were higher than expected, due to the numbers scene in other recent land sales.

“They are substantially higher than the last few sales that we had, but I guess it brings us somewhat in line with what we had budgeted for earlier in the year,” said McMillan.

The most recent land sale two months ago fetched $13.9 million. And the sale in February of 2013 brought in $11.9 million.

Overall, the six land sales in the 2013-14 fiscal year created $106.2 million in revenues.

“When we look at where the land that was put up for sale was located, it's a bit of a step-out area from where a lot of the Bakken drilling … and the southeast drilling had been done,” said McMillan. “I think that some properties were fairly hotly contested as some people looked at some real opportunity that was coming up for sale.”

The only February sale that injected more money into provincial coffers came in 2008, when it resulted in $197 million.

The next sale of Crown petroleum and natural gas dispositions will be held on April 7.

 


[Get Copyright Permissions] Click here for reuse options!
Copyright 2014 Glacier Media Inc.

License Comments

Comments


NOTE: To post a comment in the new commenting system you must have an account with at least one of the following services: Disqus, Facebook, Twitter, Yahoo, OpenID. You may then login using your account credentials for that service. If you do not already have an account you may register a new profile with Disqus by first clicking the "Post as" button and then the link: "Don't have one? Register a new profile".

The Estevan Lifestyles welcomes your opinions and comments. We do not allow personal attacks, offensive language or unsubstantiated allegations. We reserve the right to edit comments for length, style, legality and taste and reproduce them in print, electronic or otherwise. For further information, please contact the editor or publisher, or see our Terms and Conditions.

blog comments powered by Disqus



About Us | Advertise | Contact Us | Sitemap / RSS   Glacier Community Media: www.glaciermedia.ca    © Copyright 2014 Glacier Community Media | User Agreement & Privacy Policy

LOG IN



Lost your password?