Saskatchewan oil-rights sales up 30%
TOTAL PUBLIC OFFERING REVENUE FOR 2017-18 FISCAL YEAR REACHES $65 MILLION
Sustained interest in Saskatchewan’s southeast region generated the majority of revenue in the February public offering of Crown petroleum and natural gas rights on Tuesday, with the $3 million from that sale pushing the final total for the 2017-18 fiscal year to $65 million.
This total exceeds the previous fiscal year-end total of $50 million as industry activity and investment shows sustained signs of trending upward in the province.
“Saskatchewan is consistently a jurisdiction of choice for conventional producers looking for stability and solid returns,” Energy and Resources Minister Bronwyn Eyre said. “Increased drilling activity and industry investment indicate that one of our key economic sectors continues to gather momentum and stimulate growth in the province.”
Southeast Saskatchewan remained the focus of attention with 52 leases, consisting of 3,448.152 hectares, fetching $2,452,992.19. Spartan Energy Corp. bid $1,039,679.96 for 18 leases in southeast Saskatchewan totaling 1,295.206 hectares. One lease south of Carnduff received a bonus bid of $325,346.74 for 129.5 hectares. This lease was purchased by Spartan Energy Corp. and is prospective for oil in the Midale and Frobisher Beds of the Madison Group.
Saskatchewan’s oil and gas industry accounts for an estimated 15 per cent of the province’s total real Gross Domestic Product (GDP), and is the largest contributor among primary industries to provincial GDP.
In the Fraser Institute’s Annual Global Petroleum Survey for 2017, Saskatchewan ranked seventh out of 97 jurisdictions in the world in terms of overall attractiveness for oil and gas investment, and has consistently been among the top 10 jurisdictions over the past six iterations of the survey.
The next public offering of petroleum and natural gas rights will be held on April 10, 2018.
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