Saskatchewan hasn’t been making much on drilling rights in the last few years, but business is starting to pick up.
The ministry of economy said June’s public offering of petroleum and natural gas rights has raised $22.8 million – the largest revenue for a single public offering in nearly three years.
The release said the numbers speak to the “strong interest” in potential heavy oil reserves northeast of Lloydminster.
On John Gormley Live Thursday, Energy and Resources Minister Dustin Duncan said the rights go to Millennium Land Ltd. for a site near Midale, a community located 38 minutes southeast of Weyburn, and another in the St. Walburg area near Lloydminster.
The ministry of economy said Millennium bid $4,002,780 to acquire a 1,327-hectare exploration licence located southwest of Midale.
“This shows that not only are they putting money back into the economy through the drill bits, but they’re looking to add back to their inventory so this is very positive news for the industry,” Duncan said.
The sale brings the total for the 2017 fiscal year to $24 million in two transactions.
“In one land sale, we are halfway to what we earned all of last year over six land sales,” Duncan explained.
The ministry said the next public offering of petroleum and natural gas rights will be held on Aug. 1.