The Saskatchewan government says this month’s sale of crown petroleum and natural gas rights generated the largest revenue in three years.
The June sale of petroleum rights raised 22.8 million dollars, bringing this year’s total to 24 million dollars after two sales.
The average price is 331 dollars per acre, almost double Alberta’s average of 188 dollars per acre for conventional oil and gas parcels.
These figures follow a recent upward trend in provincial drilling activity and is driven by strong interest in an area for heavy oil northeast of Lloydminster.
Energy and resources minister Dustin Duncan says the June sale is a significant revenue increase and the single highest amount since August 2014.
Millennium Land bid just over four million dollars to acquire a 33 hundred acre exploration licence located southwest of Midale.
The parcel is prospective for multiple targets, particularly the Bakken Formation and the Three Forks Group/Torquay Formation.
Two parcels northeast of Lloydminster in the St. Walburg area received bonus bids totalling 9.7 million dollars for 32 hundred acres, with one of these parcels receiving the highest dollar per acre at 32 hundred 46 dollars.
These parcels are prospective for heavy oil in the Mannville Group, with well logs showing significant potential for the application of thermal recovery methods.
The next public offering of provincial crown petroleum rights will be in August.