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The total cumulative spent to acquire P&NG and Oil Sand Rights in Alberta in 2023 was $434 million ($460 million in 2022). The average P&NG unit price in 2023 was $421/ha, while the average oil sands unit price was $957/ha. The highest unit price paid on a given parcel was $20,102/ha, which was spent in the Elmworth area (Twp 68 Rge 4W6) for two sections of land (one section was surface to basement and one section was for below base of Charlie Lake to basement).
The two most active areas for land sale postings in Alberta in 2023 were in the Sinclair/Elmworth area and Pembina area. In the Sinclair/Elmworth area, a total bonus of ~$53 million was spent on rights that included the Triassic and deeper rights. In the May 11, 2023, edition of DOB Energy, Birchcliff Energy announced it was the purchaser of most of these lands to explore for Montney gas. The average unit price paid was $1,109/ha.
In the Pembina area, the total bonus paid in 2023 was ~$34 million. The average unit price paid on these lands was $345.1/ha. In the Pembina area the most active operators are Teine Energy and Westbrick Energy, which are currently developing the Duvernay and Rock Creek, respectively. However, most of the licensing and drilling to-date on these land sale parcels has been for Cardium.
The total cumulative spent in Saskatchewan in 2023 was $74.7 million. The average P&NG unit price was $696/ha, and there were no oilsands leases sold. (Note, heavy oil in Saskatchewan is mostly P&NG leases and licenses; it must be north of TWP 73 in Saskatchewan to be counted as oilsands and there were no land sale parcels posted that far north in 2023.)
The most interesting posting in 2023 in Saskatchewan was in the Pasquia Hills area. Interest continued for oil shale exploration in the Belle Fourche formation as Millennium Land acquired 13.6 townships of oil shale exploratory permits. These lands are near the town of Hudson Bay and carry a $6.1-million work commitment. Burgess Canadian Resources owns the adjacent oil shale lands and has been the only active company chasing this play, having drilled nine stratigraphic wells in 2022. It is currently re-entering old wellbores on the acquired land sale parcels to test the integrity of the casing.
Bruce Hancock is Director, Technical Advisory Group, at geoLOGIC systems ltd. He has over 40 years’ experience in oil and gas exploration, development, and production.
