West central Saskatchewan brings in over half of Crown land sale dollars

By Brian Zinchuk

The Government of Saskatchewan’s Crown petroleum and natural gas public offering, held on Tuesday, October 3, 2023, has raised $11,049,883 for the province.

Of the 157 parcels posted for this sale, 107 parcels received acceptable bids. These bids covered 18,871 hectares.

The Kindersley area accounted for over half the money raised, as it generated the most cashflow. West central Saskatchewan accounted for $5,811,151 for 20 leases and two exploration licenses totalling 7,592 hectares.

Alliance Drilling Rig 2 north of Glen Ewen on Sept. 29. Photo by Brian Zinchuk

The Lloydminster area had 53 leases posted totalling 10,256 hectares, of which 33 sold totalling 5,827 hectares. The value of leases was $2,317,040, or $398 per hectare on average. The highest bonus bid and highest dollars per hectare received on a parcel in this area was $391,291, or $1,510 per hectare. This 259 hectare lease is located 14 km south of St Walburg and near the Spruce Lake East Waseca Sand Oil Pool. This lease was awarded to Cougar Creek Land Ltd.

The only exploration licence posted in this area received a bonus bid of $386,164, or an average of $277 per hectare. This 1,395 hectare licence is located 14 km northeast of Macklin, adjacent to the Evesham North Mannville Sands Oil Pool. The successful bidder was Metropolitan Resources Ltd.

In the Kindersley area, the total bonus received was $5,811,151, an average of $765/hectare. This compares to $6,273,105, an average of $627/hectare at the last offering.

Millenium Land Ltd. bid $4,244,503, or $1,522 per hectare for a 2,789 hectare exploration licence located south of Major, near the North Hoosier Basal Mannville Sand Oil Pool. This is the highest bonus bid and highest dollars per hectare received on a licence in this area as well as the province.

The highest bonus bid and highest dollars per hectare received on a lease in this area was $406,610, or $1,566 per hectare. This 260 hectare lease is located five km northwest of Dodsland and near the Druid Mannville Sands Oil Pool and the Plenty Viking Sand Oil Pool. Cardinal Energy Ltd. was the successful bidder.

Interest in southwest Saskatchewan could best be described as minimal. Only four leases were posted, totalling 389 hectares which brought in $19,200. The highest bonus bid and dollars per hectare received on a lease in this area was $11,502, an average of $89 per hectare. This 130 hectare lease is located 28 km northwest of Gull Lake and 6 km west of the Delta Upper Shaunavon Oil Pool. This lease was awarded to Potts Petroleum Inc. (50 per cent) and Supreme Energy Inc. (50 per cent).

Regina-based ROK Resources Inc. submitted the highest dollars-per-hectare bid, $3,153 per hectare for a 33 hectare lease in the Estevan area, southwest of Stoughton. This lease is within the Innes Frobisher Beds Oil Pool.

After four of six public offerings this fiscal year, the province has received $48,233,785 in revenue. At this time last fiscal year, oil and gas public offerings had generated $34,188,371 in revenue.

The next scheduled date for a public offering in Saskatchewan is December 5, 2023.