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August sale of oil and gas rights in Sask. generates $8M
(Larry MacDougal / THE CANADIAN PRESS)
Published Thursday, August 3, 2017 1:01PM CST
The province says revenue from the August sale of oil and natural gas rights in Saskatchewan totalled $8 million.
The southeast region attracted the most interest, accounting for $6 million of the revenue generated from this month’s sale.
Six exploration licences southwest of Radville received bonus bids Tuesday, totalling $1,605,454 for 17,612 hectares.
Stomp Energy Ltd. bid $922,675 to acquire four of those exploration licences, which span a combined 11,655 ha.
Millenium Land Ltd. bid $682,788 to acquire the other two licences across 5,957 ha. The company also successfully bid $442,163 on a 64.75 ha lease, located southeast of Radville.
This week, the Petroleum Services Association of Canada increased its drilling forecast for Saskatchewan from 1,940 wells to 2,794.
“These figures, along with positive expectations by industry, suggest our oil and gas sector is regaining momentum after a prolonged period of transition,” Energy and Resources Minister Dustin Duncan said in a news release Thursday.
“There’s no doubt that this kind of renewed activity in Saskatchewan’s oil patch bodes well not only for our communities that rely on this industry for jobs and growth, but also for our economy at large.”
The August sale, which was the third of the fiscal year, brings the current revenue tally to $32 million. The next public offering of oil and natural gas rights in Saskatchewan will be held on Oct. 3.