Saskatchewan caps off 2014 land sales with $18.3-million auction

Saskatchewan's land sale revenue rebounded in 2014, with industry paying nearly $200 million in bonus bids—up by roughly $130 million over 2013.

The December sale produced $18.3 million in bonus bids on 26,670 hectares at an average of $685.18 per hectare. In 2014, industry paid $197.9 million for 200,243 hectares at an average price of $988.15 per hectare. In 2013, the province took in $67.4 million on 111,340 hectares at an average price of $605.12 per hectare.

The December sale saw the Weyburn-Estevan area receive the most bids with sales of $11.9 million. The Kindersley-Kerrobert area was next at $4.5 million, followed by the Lloydminster area at $973,220 and the Swift Current area at $864,218.

The top purchaser of acreage in the province was Prairie Land & Investment Services, which spent $4.3 million to acquire 11 lease parcels.

The top price paid for a single lease was $1.2 million. The 259-hectare parcel is situated partially within the Steelman Midale and Frobisher Beds oil Pools, 26 kilometres east of Estevan, and was acquired by Prairie Land.

Ranger Land Services paid the highest bonus for a single licence, submitting a bid of $1.3 million for a 1,165.49-hectare block starting at section four at 009-04W2. The parcel is adjacent to the Bennett Lake Alida Beds oil pool, six kilometres north of Arcola.

The highest per-hectare spend in the sale came from Northend Resources, which paid $9,318.98 per hectare on a bonus bid of $603,403 for a 64.75-hectare parcel located within the Pinto Frobisher Beds oil pool, 28 kilometres southeast of Estevan.

Gas-prone areas of the province attracted bonus bids of $310,048 for 1,033.96 hectares, an average of $299.87 per hectare.

Daily Oil Bulletin

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