In the November offering, 29 tracts totaling slightly less than 10,000 acres of oil and natural gas leases were sold in four southeastern New Mexico counties, including three in the Permian Basin, New Mexico’s Land Office said Monday. All 29 tracts offered were sold among 10 bidders.
The state gained $3.85 million for the beneficiaries of the monthly oil/gas sale, which included acreage in Lea, Eddy, San Juan and Chaves counties. On a year-over-year monthly comparison lease revenues were down compared to November last year, which brought in $5.2 million for less acreage (8,226.7 acres last year, compared with 9,997.8 acres this year).
A high bid of $930,000 was placed by Roswell, NM-based Ronald Miles for 304 acres in Lea County. Among the bids, 14 tracts covering 5,346.84 acres garnered $1.17 million at $219.59/acre under five-year sealed bids. The other 15 tracts, totaling 4,651 acres, bought in $2.6 million at $576.86/acre in five-year oral bids.
Miles’ high bid of $3,052.78/acre was given orally. The highest sealed bid overall and per-acre were split between New Mexico-based Yates Petroleum LP ($373,433 for 640 acres in Chaves County) and Farmington, NM-based Dugan Production ($1,616/acre for 40 acres in San Juan County).
Bonuses, or bids, earned from the sales go directly to trust beneficiaries, including public schools, hospitals and universities. Lease sale results are posted on the state agency’s website.
Held on the third Tuesday of each month, New Mexico’s next oil/gas lease sale is set for Dec. 18.
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