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Interest in Prospective Heavy Oil Near Lloydminster Creates Large Public Offering

The Government of Saskatchewan is reporting the largest revenue for a single public offering since 2014 due to strong interest in expected heavy oil northeast of Lloydminster. On Tuesday, June’s public offering of Crown petroleum and natural gas rights raised $22.8 million.

“This is a significant revenue increase and the highest for any of Saskatchewan’s past public offerings since August 2014,” says Dustin Duncan, the Energy and Resources Minister.

“Some of the most dynamic opportunities in Saskatchewan are those in our oil and gas sector, backed up by a world-class supply chain and a global reputation among the industry for low-risk investment,” he adds

Two collections northeast of Lloydminster in the St. Walburg area received bonus bids totaling $9,736,304.69 for 1,295 hectares. One of them received the highest dollar-per-hectare at $8,115.76.

After two sales, the Saskatchewan Government says the total for sales in 2017 is $24 million.  The current average price per hectare for Saskatchewan parcels is $828.81, which is almost two times Alberta’s average of $470.71 for conventional oil and gas parcels.

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The next public offering of petroleum and natural gas rights will be held on August 1.

 

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