Sask. government oil and gas public offering garners nearly $13 million

StarPhoenix Staff

The Government of Saskatchewan’s first Crown oil and natural gas public offering of the new fiscal year generated nearly $13 million in revenue.

The bidding took place online last week. In a recent news release, the government said companies bid on 87 land parcels in the Estevan, Lloydminster, Kindersley and Swift Current areas, spanning more than 20,000 hectares.

Leases are offered with five-year terms and are issued in less developed areas for exploration and production oil or natural gas.

“Exploration licenses have terms of two to five years and are issued in less developed areas for exploration and production,” the release read.

At the offering, the Estevan area led with $5.95 million worth of bids, followed by the Lloydminster area with nearly $4.5 million.

Closely behind, the Kindersley area received nearly $2.3 million worth of bids, while Swift Current area brought in just over $87,000.

Whispering Hills Resources Ltd. made the highest bid, offering more than $1.6 million for an exploration license on a nearly 7,000 hectare parcel in the Kindersley area.

Millennium land Ltd. has two identical bids of more then $1.2 million that were the highest made for a lease in the offering, each tendered for properties in the Lloydminster area. The government said each of these leases are roughly 515 hectares.

The highest dollars-per-hectare bid came from Tundra Oil and Gas Limited, which offered approximately $12,000 per hectare for a total of $391,000 on a 32-hectare lease in the Lampman area near Estevan.

The government said oil and gas prices, land availability, geological and technological constraints and market conditions affect public offering activity.

The next offering is scheduled for June 2.

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