Tuesday, November 6, 2007

State Lease Sale Results

I doubt if anyone thinks there were any surprises at the state auction today. The top bid, and only one over $1K/acre, went to Northern Oil for 80 acres in sec. 8, 152N, 91W, Mountrail Co., where they paid $2,150/acre. Three other tracts in the same general area went for $500-600, which were the only other tracts available in the county. The area is about six miles west/southwest of current activity in Parshall Field, and Slawson has several wells planned in the immediate area.

Other highlights include Ward Co. with bids generally ranging in the $200-300 range in the overall area of T.152-156, R.85-87. The high bid in the county was $380 and went to Cody Oil.

Acreage in McLean Co, in the overall area of T.148-150, R.87-90, went for about $150-500, with the high bid of $570.

Dunn Co had a number of tracts in the east central part of the county in the general area of T.144-145, R.91-92, that for the most part were in the $350 range. The high bids in the county were for some isolated Missouri River tracts in T.149, R.92, that went for $575/acre.


Anonymous said...

Have you heard anything about the Fort Berthold BIA lease sale?

Teegue said...

From the Bismark Tribune and the New Town News:

On 11/15 "Sealed bids from 17 companies were open for 2,000 tracts totaling 200,000 acres. Some acres were later withdrawn because some oil companies were already in negotiations with the mineral owners.

Overall, EOG Resources, of Denver, had the highest bid bonus per acre, at $651 for tracts in McKenzie County. Lowest was $79 per acre, bid by Stephens Co., for leases in Mountrail County.

Tracts in Dunn County appeared to attract the most bidders, particularly in two townships, where Simray Production, of Texas, was high at $606 per acre.

Bureau of Indian Affairs superintendent Howard Bemer said the agency will send out a formal award letter to the highest bidder of each tract and the names of the tribal members who have ownership.

Then, the process allows those companies to get signed mineral leases from the mineral owners.

The superintendent can extend the lease process between private companies and the mineral acres after the normal 30-day period expires.

"It's strictly up to me," Bemer said, when asked how many times an extension can be granted.

In order to preserve the integrity of the auction, Bemer said the agency would not entertain any other lease inquiries until the 30-day period expires.

Bemer said the agency would work as quickly as it could to get the deals done, in order to benefit both the companies and the mineral owners."