AUGUST LAND SALE RESULTS ANOTHER SIGN OF HIGH OILPATCH ACTIVITY

Released on August 14, 1997

Energy and Mines Minister Eldon Lautermilch today announced that,

with the conclusion of the August sale of Crown petroleum and natural

gas rights, the total land sale revenue received for 1997 continues to

outpace last year. To date, $93.8 million has been raised, compared

with $59.3 million for the same period in 1996.



"Typically, land sales are a bit slower in the summer," Lautermilch

said. "However, this month's sale is another indicator of just how

heated-up Saskatchewan's oilpatch is."



The August 12th sale realized $21.1 million for the province from a

total of 468 parcels. Nine permits (for exploration only) sold for

$3.2 million and 459 leases were purchased for $17.9 million. The

previous sale in June raised $18.3 million from 418 parcels.



All nine permits sold are in an area approximately 30 kilometres south

of the town of Kindersley and immediately north of the South Saskatchewan

River. Wascana Energy Inc. acquired eight of the permits and Fletcher

Challenge Energy Canada Inc. acquired one.



The Weyburn-Estevan area received the most bonus bid activity with sales

totalling $7.9 million. The Kindersley-Kerrobert area was second with

$6.2 million. The Lloydminster and Swift Current areas followed with $5.1

million and $1.9 million, respectively.



The highest price received for a single lease parcel was $663,835. This

517-hectare parcel, located approximately 10 kilometres northwest of Pangman

(70 kilometres west of Weyburn), was purchased by Talisman Energy Inc.



The highest price paid on a per hectare basis was $3,089. Rangeland

Resources Ltd. paid $50,008 for this 16-hectare parcel located in the

Willmar Frobisher-Alida Beds Pool in the southeast part of the province.



The next sale of Crown petroleum and natural gas rights will be

October 7, 1997.



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For more information, contact:



Gordon Hutch, Director

Geology and Petroleum Lands Branch

Energy and Mines

Regina

Phone: (306) 787-2606