The U.S. Bureau of Land Management’s (BLM) recent round of fourth quarter oil and natural gas lease sales drew less industry interest than prior sales, but more producers picked up acreage in North Dakota’s Bakken Shale and the New Mexico portion of the Permian Basin. 

The lease sales in New Mexico netted more than $22.3 million for six parcels in Eddy and Lea counties, in the heart of the Permian’s Delaware sub-basin. More than 150 bids were placed for the 430 acres offered, with the highest bid topping $16 million for 120 acres in Eddy County. 

Eddy and Lea counties accounted for 28% of all Permian natural gas production in 1Q2023, according to the U.S. Energy Information Administration (EIA). Associated natural gas production from the counties has nearly doubled over...