August Public Offering of Petroleum and Natural Gas Rights Generates $10 Million for Province of Saskatchewan
August Public Offering of Petroleum and Natural Gas Rights Generates $10 Million for Province
Released on August 11, 2016
Saskatchewan’s August public offering of Crown petroleum and natural gas rights was the largest yet for 2016–17, accounting for 60 per cent of the total to date by raising $10 million in revenue for the province. The fiscal year total now stands at $17 million, with three sales remaining.
Saskatchewan continues to post the highest per-hectare prices among western Canadian public offerings in 2016, averaging $405 per hectare—significantly more than the average prices per hectare for petroleum and natural gas rights in Alberta or British Columbia, reflecting the industry’s sustained relative interest and activity in Saskatchewan’s oil patch.
“Our positive investment climate and stable royalty regime, coupled with our significant resources, is a recognized asset for the industry in Saskatchewan,” Economy Minister Bill Boyd said. “We have and will continue to work with our stakeholders to ensure the Saskatchewan remains one of the most attractive jurisdictions to do business.”
Among the initiatives undertaken by the province to enhance its attractiveness are the Integrated Resource Information System (IRIS), an online business system that supports the development and regulation of Saskatchewan’s energy and resources industry, and a petroleum geoscience program that provides technical information to attract and support oil and gas exploration and development.
The Estevan area received the majority of interest in this public offering with $8.8 million in total successful offers. Two exploration licences located west of Estevan received bonus bids totalling $5.8 million for 5,731 hectares.
Metropolitan Resources Inc. was the successful bidder of these parcels that are prospective for multiple targets including the Bakken Formation and Three Forks Group/Torquay Formation. The highest offer for a parcel of land in this public offering was $4.2 million for a 2,492 hectare lease west of Estevan. Metropolitan Resources Inc. was the successful bidder.
The Fraser Institute’s most recent annual Global Petroleum Survey of petroleum executives ranked Saskatchewan first in Canada and among the world’s top 10 in the category of attractive jurisdictions for investment in petroleum exploration and development.
The next public offering of petroleum and natural gas rights will be held on October 4, 2016.
For more information, contact: