The Interior Department's Bureau of Land Management (BLM) said it received more than $15 million in revenue from an oil and gas lease sale held last week for parcels in the New Mexico portion of the Permian Basin and in Oklahoma.
BLM said 36 parcels in New Mexico and nine in Oklahoma, totaling nearly 13,888 acres, brought in nearly $15.4 million at a lease sale held late last month through the New Mexico office in Santa Fe. The New Mexico parcels fetched $14.6 million, while the Oklahoma parcels netted $747,752. The revenue is to be divided evenly between the states and the federal government.
The New Mexico parcels were in Chaves, Eddy, Lea, McKinley, Rio Arriba, Sandoval and San Juan counties, while the Oklahoma parcels were in Dewey and Woodford counties.
XTO Holdings LLC, a subsidiary of ExxonMobil Corp., entered the highest bid overall at $3.23 million, offering $40,411/acre for an 80-acre parcel in New Mexico. Tapstone Energy LLC made the highest bid in Oklahoma at $226,000, paying $2,825/acre for an 80-acre parcel.
New Mexico's booming portion of the Permian has transfixed producers and regulators alike. For producers, concerns have been mounting that the region has insufficient resources to handle wastewater from oil and gas drilling. Last month, Gov. Michelle Lujan Grisham signed a bill on produced water into law, as well as a separate measure committing the state to a 100% carbon-free energy mix by 2045.
Meanwhile, researchers in Oklahoma recently concluded that the state lost $1.5 billion in tax revenue during a two-year energy recession that began with a collapse in oil prices in 2014.
According to data from Baker Hughes, a GE Company, the Permian lost five rigs for the week that ended March 29, making a new total of 454 rigs. In Oklahoma's Cana-Woodford, producers dropped three rigs to total 49.