Energy activity in the Lloydminster area powered Saskatchewan’s latest Crown oil and gas land sale, generating over $11.3 million to lead a province-wide total of $29 million.
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The Oct. 6 sale accepted bids on 75 parcels — comprising 69 leases and six exploration licences — covering a total of 22,350 hectares across the province, according to figures released Friday by the Ministry of Energy and Resources.
The Lloydminster region posted the highest total return at $11,366,578, driven in part by a single exploration licence east of St. Walburg that fetched $9,995,200. Awarded to Scout Energy Ltd., the 2,324-hectare licence represented the highest single bonus bid received on an exploration licence during the offering.
“Bids in the Lloydminster area earned the highest amount, followed closely by bids in the Estevan, Swift Current, and Kindersley areas,” the provincial government said in a release.
Revenue in the Estevan area totaled $10,033,965, followed by $5,821,007 in the Swift Current area and $1,909,781 around Kindersley. The highest bonus bid for a lease was $801,000, awarded to Hummingbird Energy Inc. for a 64-hectare parcel northeast of North Portal.
In total, six exploration licences generated $19,829,283. Three were located in the Swift Current area, two in the Estevan area, and one in the Lloydminster region.
Saskatchewan issues leases for up to five years for drilling and production, while exploration licences run two to five years in less-developed areas.
The province’s next public offering of Crown petroleum and natural gas rights is set for Dec. 1.
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