OIL INDUSTRY CONFIDENCE SPARKS SECOND BEST LAND SALE EVER

The second highest single sale of Crown petroleum and natural gas rights in the province's history is further proof Saskatchewan's oil and gas industries are on a roll.

August's sale raised an incredible $242.7 million in revenue for the province, a result only slightly behind the single sale record set in April. The year-to-date revenue figure from land sales now stands at a record $848.1 million, with two sales left in the year.

"The oil and gas industries clearly like what is happening in Saskatchewan," Energy and Resources Minister Bill Boyd said. "There is appreciation of our great business climate and the opportunities for investment that climate affords. And industries particularly like our world-class resources, including the hottest oil play in North America.

"This confidence by the industry not only means more revenues to the province right now, but it also signals much more economic activity in future and more jobs and opportunities for Saskatchewan people," Boyd said.

August's sale featured 43 exploration licences that sold for $127.6 million and 425 lease parcels that brought in $115.1 million.

The Weyburn-Estevan area once again led the way with sales of $212.3 million, reflecting the unprecedented interest in the red-hot Bakken play. The Kindersley-Kerrobert area was next at $14.3 million, followed by the Lloydminster area at $8.7 million and the Swift Current area at $7.4 million.

The highest price paid for a single parcel was $24.2 million. Windfall Resources Ltd. purchased this 1,211- hectare exploration licence of deeper rights, located beneath the Warmley Alida Beds Pool, near Stoughton.

The August sale set a new record for the price paid on a per-hectare basis at $44,201. LandSolutions Inc. purchased this 130-hectare lease parcel of deeper rights just southwest of Kisbey for over $5.7 million.

The next sale of Crown petroleum and natural gas dispositions will be October 6, 2008. Oil sands exploration licences will also be offered at this sale.