The U.S. Bureau of Land Management (BLM) auctioned more than 1,184 acres last week for oil and natural gas development in Ohio’s Wayne National Forest (WNF) and Louisiana’s Kisatchie National Forest (KNF), bringing in more than $1 million that is to be split between the federal and state governments.
BLM offered 350 acres in WNF’s Marietta Unit and 834 acres in the KNF. Blue Ridge Mountain Resources Inc. subsidiary Triad Hunter LLC took all the acreage in the WNF and accounted for the bulk of the lease sale proceeds, paying nearly $954,000 in bonuses. All of the parcels are in Monroe County and prospective for the Utica Shale. BRMR, formerly Magnum Hunter Resources Corp., has 105,000 net acres in Ohio and West Virginia.
Ruston, LA-based land broker, Hunter Energy Corp., which has no affiliation with Triad, had the high bid for 300 acres in the KNF for more than $34,000. Magnum Producing LP, a junior exploration and production company headquartered in Corpus Christi, TX, unaffiliated with Triad, took the other 509 acres for more than $23,000. The parcels are in Louisiana’s Natchitoches and Winn parishes.
BLM said two years ago that it was considering leasing land in the Marietta Unit, which spans 40,000 acres in Monroe, Washington and Noble counties, which were nominated for unconventional development. It began auctioning parcels last year and has since generated more than $7 million in proceeds.
The oil and gas leases are for up to 10 years. The federal government receives a 12.5% royalty and each state government receives a 25% minimum share of the bonus bid and the royalty revenue from each lease issued.