The Southwest Booster

Southwest quiet during Saskatchew­an’s best oil and gas offering of 2018

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While Saskatchew­an recorded its best petroleum and natural gas public offering of the year, the Southwest was only a small contributo­r to that total.

The Crown petroleum and natural gas rights on June 5 generated $15.6 million in activity, well ahead of the $2.86 million total generated back in April. It stands as Saskatchew­an’s the fourth best sale among the 15 sales held since 2016.

In the Southwest just a single lease was available and sold for a price of $61,090. Scott Land & Lease Ltd. acquired the 64.63 hectare parcel located within the Gull Lake Basal Cantuar Sand Oil Pool (five kilometres southwest of Gull Lake) for $945.23 per hectare.

With just $61,090 in activity in the Southwest, the June sale ranks as the quietest among the last seven sales dating back to February 2017 when just $4,861 in interest was shown.

The Estevan-weyburn area led the way with $11.48 million in activity, followed by the Kindersley-kerrobert region with $3.45 million in interest, while Lloydminst­er and region had three leases sold at a cost of $631,000.

The largest transactio­n in the sale came when Stomp Energy Ltd. acquired a just over 1,000 hectare licence 40 kilometres southeast of Radville at a cost of $10.5 million or $10,146 per hectare.

Work continues to expand in the Elrose area, with Windfall Resources Ltd. purchasing a 259 hectare parcel lease at a cost of $340,836. The lease, considered part of the Kindersley­kerrobert region, is situated 20 kilometres south of Elrose near the Forgan West Viking Sand Oil Pool.

The next public offering sale will be held on August 14.

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