The Government of Saskatchewan’s second Crown oil and natural gas public offering of the fiscal year has generated nearly $18 million in revenue, driven largely by strong bidding in the province’s southeast.
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The June 2 public offering brought in a total of $17,747,731.98, according to data released by the Ministry of Energy and Resources on Friday.
Energy companies placed successful bids on 61 parcels of land spanning the Estevan, Lloydminster, Kindersley, and Swift Current areas. The total area covered by the bids encompasses more than 28,833 hectares.
The Estevan area proved to be the most lucrative region for the province, generating $10,464,283.57 across 21,190 hectares.
The window also saw the highest individual bid for an exploration licence, with Millennium Land (222) Ltd. paying $2,453,205.92 for a 968.896-hectare parcel located south of Estevan. Exploration licences feature terms of two to five years and are typically used to assess production potential in less developed areas.
Meanwhile, the highest bid for a standard lease came from the Lloydminster area. Prairie Land & Investment Services Ltd. secured a 258.053-hectare lease for $876,340.25. Standard leases carry five-year terms and grant companies the immediate right to drill for and produce oil or natural gas.
Elsewhere in the province, the Kindersley area pulled in $3,910,411.63 in successful bids, while the Swift Current area raised $117,213.05.
The public offering also included the sale of 17 oil shale leases located south of Hudson Bay, which were awarded to Burgess Canadian Resources ULC for a combined total of $3,000,003.65.
Saskatchewan’s public offering activity fluctuates based on a variety of market factors, including global oil and gas prices, land availability, and geological or technological constraints.
The next Crown oil and gas public offering is scheduled to take place on Aug. 11.
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