December Crown land sale brings in $7.5 million

By Brian Zinchuk

The Government of Saskatchewan’s latest Crown oil and natural gas public offering, held on December 2, 2025, attracted 89 bids for leases and exploration licences, and generated $7,484,946 in revenue, almost half of which came from the Estevan area.

The bids covered 17,876 hectares in all four bid areas of the province – Estevan, Lloydminster, Kindersley and Swift Current.

Stampede Drilling Rig 22 was drilling a CO2 well between Drinkwater and Belle Plaine on Nov. 28. Entropy Inc. took over Whitecap’s Regina carbon hub project, and is apparently drilling a second well in the Drinkwater area. Photo by Brian Zinchuk

The Estevan area brought in the most revenue, $3,692,676, following bids for two exploration licences and 43 leases totalling 3,502 hectares. A total of 44 leases and five licenses were posted, so nearly every lease posted sold.

The average lease bonus per hectare was $1,180, while the average licence came in at $424 per hectare.

This area also saw the highest bid amount and the highest dollars-per-hectare bid on a parcel – made by Whitecap Resources Inc. The company offered $1,047,041, or an average of $8,111 per hectare, for a 129 hectare lease 14 kilometres southeast of Lampman.

Hummingbird Energy Inc. made the highest bid on an exploration licence. The company offered $233,000.00 for a 321 hectare lease 28 kilometres east of Radville, also in southeast Saskatchewan.

In the Lloydminster area, 44 leases were posted with sales on 29 leases. That generated $1,886,405, for an area covering 6,798 hectares. Scout Energy Ltd. made the highest bid in the area, $777,861 for a 775 hectare parcel 15 kilometres southeast of St. Walburg.

The highest dollars per hectare received on a parcel in this area is $1,206 per hectare, a total of $235,018. This 195 hectare lease was awarded to Cenovus Energy Inc. and is located 25 kilometres west of Turtleford, near the Celtic Mannville Sands Oil Pool.

The Swift Current area had six leases totalling 1,291 hectares which sold for $947,849. The price per hectare came in at $734.

The highest bonus bid received on a lease in this area is $357,622, an average of $1388 per hectare. This 258 hectare lease was awarded to Barrel Oil Corp. and is located 7 kilometres southwest of Frontier, near the Rapdan South Shaunavon Oil Pool.

The highest dollars per hectare received on a lease in this area is $1,433 per hectare, a total of $185,000. This 129 hectare lease was awarded to Hummingbird Energy Inc. and is located 9.5 kilometres southwest of Frontier, near the Rapdan South Shaunavon Oil Pool.

The Kindersley area raised $958,006 for eight leases sold (of 12 posted) and one licence sold. The eight leases totaled 1,880 hectares totalling $780,329, or $415 per hectare. The one license was for 4,406 hectares and went for $177,677, or $40 per hectare.

The highest bonus bid received on a parcel in this area is $205,426, an average of $791.10 per hectare. This 260 hectare lease was awarded to Millennium Land (222) Ltd. and is located 30 kilometres west of Luseland.

The highest dollars per hectare was received on four parcels in this area at $791 per hectare. These four parcels were awarded to Millennium Land (444) Ltd. and Millennium Land (222) Ltd. The parcels are located 30 kilometres west of Luseland, near the Cactus Lake North McLaren Oil Pool.

This month’s Crown oil and natural gas public offering was the fifth of the fiscal year, during which the province has raised $60,246,955 in revenue. The sixth and final offering of the fiscal year is scheduled for February 3, 2026. It will feature 98 leases and two exploration licences covering 19,371 hectares.

Leases are offered with five-year terms and are issued to drill for and produce oil or natural gas. Exploration licences have terms of two to five years and are issued in less developed areas for exploration and production. Several factors affect public offering activity, including oil and gas prices, land availability, geological and technological constraints and various market conditions.