June oil, gas rights sale yields Sask. government $18M

Companies paid $18 million in the June land sale for oil and gas rights on Crown land, the Saskatchewan government announced Thursday.

It's an increase over the previous two land sales this year, but still only a fraction of the $142 million racked up in the June sale in the record-setting year of 2008.

Energy and Resources Minister Bill Boyd said in a statement he hopes the upward trend continues in second half of the year.

Crude oil futures, which ended December at $44.60 US a barrel on the New York Mercantile Exchange, ended the day Thursday at $72.68.

"Over time, growing strength in markets will be reflected in increased activity in Saskatchewan's oilpatch," Boyd said.

More than half of the money from the June sale is connected to bids in the Weyburn-Estevan area.

The government holds land sales every two months. The next sale will be held on Aug. 10.