Thursday, May 5, 2011

Results of the May, 2011, North Dakota Lease Auction -- Oil and Natural Gas

Link here to the state site. (See comments: Clear Creek Resources, LLC, is a subsidiary of Chesapeake Energy.)

Link to the state site with results by county.

Also, a summary by the Bismarck Tribune.com (data points, some numbers rounded):
  • Yesterday's (May, 2011) quarterly state auction resulted in $47 million for the state
  • Cumulative > $500 million over the past three years
  • More than 61,000 acres were leased in yesterday's auction; average price $800/acre
  • The average very misleading due to very small bonuses ($12/acre, for example) in many areas
  • Leases sold in four counties outside the state's traditional oil patch: Stutsman, Adams, McHenry, and McIntosh (actually Adams is fairly close; Stutsman is almost as far east as Fargo)
  • Of the 1.2 million acres managed by the state, only 320,000 acres are still unleased
Highlights:
  • Not much was offered by the state that caught investors' attention. [Update: See first comment below: any unleased state land is available; the auction list is determined by what folks are interested in bidding on.]
  • Highest bonus paid: $8,300/acre for 146 acres in Mountrail Country; Larco Resources, LLC
  • Biggest bidder: Larco Resources, LLC
  • Other big bidders: Clear Creek Resources, LLC; Kasmer and Aafedt; Slawson Exploration; Daniels Petroleum; Sierra Resources; Stephens; Liberty; Diamond
  • Hess paid $6,500/acre for several tracts in McKenzie County
  • Cody Oil and Gas Corporation was the notable player in Emmons, McIntosh, and Stutsman counties
  • All tracts in Stark County were picked up by Clear Creek Resources; almost all them for $900/acre
In Mountrail County:
  • Sections 26, 27, 28, 32, 33, 34, and 35 in T153N-R93W received much interest ($7,000 - $8,300/acre). These sections are under the Missouri River and sit in/between the Sanish and the Elm Tree oil fields. 
In McKenzie County:
  • Sections 29, 30 and 32 in T154N-94W were exciting (around $6,500/acre). These three sections are in/near Alkali Creek, Elm Tree, and/or Charlson oil fields.
In Dunn Country:
  • Sections 24, 25, 26, and 27 in T143-N95W brought around $5,500/acre). These sections are in Murphy Creek and in a very active part of the Bakken.