Saskatchewan’s Second Helium and Natural Hydrogen Rights Offering Raises $2.5 Million

The Government of Saskatchewan has raised $2.5 million from its second Crown public offering for helium and associated gas rights, with bids received for all 13 permits made available in the September 1 auction. 

The permits cover a combined 272,915 hectares, adding another substantial area of Crown mineral rights to Saskatchewan’s developing helium and natural hydrogen exploration landscape. 

The largest individual bid came from 2743501 Alberta Ltd., which offered $817,781 for a permit south of Lloydminster. 

The Alberta numbered company was also the largest bidder overall, committing a combined $1.476 million for five permits covering 82,499 hectares. 

Millennium Lands Ltd. secured the remaining eight permits, bidding approximately $1.033 million for a combined 190,415 hectares. 

The auction represents the second round under Saskatchewan’s new public offering system for helium and associated gases, which the Ministry of Energy and Resources introduced this fiscal year in response to increasing industry demand for helium and natural hydrogen rights. 

The framework follows a similar competitive process already used by Saskatchewan for Crown petroleum and natural gas, potash and brine lithium rights. 

While every permit in the latest offering attracted a successful bid, the total proceeds were considerably below Saskatchewan’s inaugural helium and associated gases auction in June. 

That first offering generated $15.9 million, compared with $2.5 million from the September round. 

The provincial government characterized the latest results as evidence of continued industry interest in helium and natural hydrogen exploration and potential development, but also acknowledged a more cautious bidding environment than during the first auction. 

The offering is notable in the context of Saskatchewan’s established helium industry. 

The province is Canada’s largest helium producer and accounts for approximately 3% of global supply, according to the Saskatchewan government. Helium has critical applications across medical technologies, advanced manufacturing, defence and space exploration, among other sectors. 

Natural hydrogen represents a much earlier-stage opportunity. 

Saskatchewan has documented geological occurrences of natural hydrogen, and exploration activity has accelerated as companies investigate whether parts of the province can support commercially viable accumulations alongside its existing helium resource base. 

The new Crown offering system gives companies a defined mechanism for acquiring rights to pursue those opportunities while providing the province with competitive auction revenue. 

Across Saskatchewan’s first two helium and associated gases offerings, the government has now raised approximately $18.4 million. 

The Ministry of Energy and Resources plans one more auction during the current fiscal year, scheduled for November 2, providing another opportunity for companies to acquire Crown helium and associated gas rights. 

With every permit in the September offering successfully awarded, the latest auction suggests demand for acreage remains active even as bidders become more selective about how aggressively they price new exploration ground.

Full press release can be found here [EXTERNAL].