What do think the Saskatchewan Government do with this money?

Should we get this cash? The new Saskatchewan ?

LAND SALE RECORDS SMASHED AFTER ONLY TWO MONTHS
Boyd Calls $265 Million Land Sale a Vote of Confidence in the Province and the New Government

The oil and gas industry's interest in Saskatchewan is so hot that the record for a single sale of Crown petroleum and natural gas rights has been broken after only two months.

April's sale raised an astounding $265 million in revenue for the province. This not only shattered the previous record of $197 million set in February, but also eclipsed what had been a record for total annual land sale revenue of $250 million in 2007. Prior to the February land sale, the previous record of $85 million for a single sale had stood for 14 years.

Energy and Resources Minister Bill Boyd said the record sale represents an overwhelming vote of confidence in the province by the oil and gas industry.

"This level of interest is unprecedented and speaks to the optimism about the economic prospects of both our province and our number one industry," Boyd said. "It is also a clear sign of confidence in Saskatchewan's new government and our stable royalty and regulatory regime.

"It's also important to remember that the investment and economic activity does not stop with the land sale. In fact, it's only the beginning. Each of these sales will lead to more investment in our province, more jobs and more economic benefits for the surrounding communities."

April's sale included 28 exploration licences that sold for $130 million and 278 lease parcels that brought in $135 million in bonus bids. The average price paid on a per hectare basis was $2,725, topping the previous record of $2,495 set in February.

In addition to the parcels sold for bonus bids, four special exploratory permits were awarded to Lane Land Services Ltd. on the basis of work commitments of $5.7 million over the next two years. These permits are for exploration of 260,000 hectares located in a triangular area bounded by Canora to the north, Grayson to the south and Cupar to the west.

"Investors nationally and internationally are looking to Saskatchewan and seeing energy and opportunity," Boyd said. "Their confidence in us means not only a bright future for our oil and gas industry, but also jobs and prosperity for Saskatchewan people."

The Weyburn-Estevan area again dominated the sale with over $207 million in bonus bids, largely on the strength of the Bakken oil play. The Swift Current area followed with nearly $53 million, largely attributable to industry interest in the emerging Shaunavon oil play. The Kindersley-Kerrobert area was next at almost $3 million, followed by the Lloydminster area at just over $2 million.

The highest price for a single parcel was $26.3 million, paid by Sandstone Land & Mineral Company Ltd. for an exploration licence on over 1,200 hectares 12 kilometres north of Lampman.

The highest price on a per-hectare basis was an amazing $32,500. Standard Land Company Inc. purchased this 130-hectare lease parcel 15 kilometres southwest of Stoughton, for over $4.2 million.

The next sale of Crown petroleum and natural gas dispositions will be Monday, June 9, 2008.

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For more information, contact:

Ed Dancsok
Energy and Resources
Regina
Phone: 306-787-2602
Email: edancsok@ir.gov.sk.ca