Southwest remained quiet during October oil and gas offering
A small number of posted leases contributed to another quiet petroleum and natural gas public offering in the Southwest.
Two of the five posted parcels of land available during October’s public offering attracted interest, bringing in $15,596. Both parcels were purchased by Whitecap Resources in an area 12 kilometres north of Gull Lake and adjacent to the North Premier Upper Shaunavon Oil Pool. The 242.8 hectares sold at an average cost of $64.23 per hectare.
The Southwest has now failed to top the $1 million mark for 12 consecutive sales. During the first five sales this calendar year the Southwest has generated just $1.15 million in activity, with Saskatchewan realizing province wide spending of $30.5 million.
The bright spot again during the October sale was the Kindersley/kerrobert region, where 23 leases sold at a cost of $1.28 million (an average of $255.60 per hectare). It marks the second straight sale the West Central region has led the province. Second best in the October sale was the Estevan region, where 19 leases sold at a cost of just over $660,000 (an average of $463.17 per hectare). Placing third was the Lloydminster area where 12 leases were picked up at a cost of $168,000 (an average of $471.41 per hectare).
Province wide, the October sale was the slowest of the five 2018 sales with just $2.1 million in activity. It is well off the $15.6 million in activity from the June sale, and trails the previous quietest sale back in April where $2.86 million in bids were received.
It also ranks as Saskatchewan’s second lowest total for the past two decades. The only lower total was recorded during April 2017 when $1.3 million in activity was recorded.
For the fiscal year, which begins with the April sale, Saskatchewan has produced a revenue total of $27.2 million
The final public offering of petroleum and natural gas rights for 2018 will be held on December 4.
2018 Southwest Sask. October $15,596 $2.1 million August $93,333 $6.5 million June $61,090 $15.6 million April $630,096 $2.86 million February $357,674 $3.43 million 2018 Totals 11.3 million $30.5 million 2017 Southwest Sask. December $403,050 $9.55 million October $96,788 $19.47 million August $223,688 $7.86 million June $443,152 $22.8 million April $368,644 $1.3 million February $4,861 $5.0 million 2017 Totals $1.54 million $65.98 million 2016 Southwest Sask. December $162,076 $14.2 million October $2.46 million $17.2 million August $371,692 $9.98 million June $477,663 $3.9 million April nil $3.07 million February $4,862 $5.1 million 2016 Totals $3.47 million $53.45 million