Wednesday, February 8, 2012

North Dakota State Land Lease Results -- February 7, 2012

The full results of this sale are at this link (this is a new website for the ND Department of Trust Lands, so my old links won't work -- I will be updating them as I find them).

Data points:
  • 70,000 acres in 14 western ND counties
  • average payment: almost $7,900 in McKenzie County
  • average payment: just over $1 in Grant County
  • proceeds go into trust funds for ND education
  • the largest trust fund has $1.6 billion for public schools
  • estimate going in: $60 to $100 million
  • actual: $85 million
Results from the source (first link above):

Divide County saw some hefty bonuses: $5,000/acre range.

Golden Valley is still "cheap" at less than $350/acre.

There were bonuses of almost $14,000/acre paid ($13,600 to be exact) in McKenzie County.

One tract in Mountrail County went for $10,000/acre.

Stark County saw several tracts go for $7,000/acre.

It looks like you can buy Ward County for $5/acre (some exceptions).

Williams is getting pricey at $11,000/acre, though some tracts went for as little as $200/acre.


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    2 comments:

    1. JRFebruary 8, 2012 at 9:49 AM

      $1 in Grant County. Either a steal or a sign of no oil. I bet on the latter.

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      1. Bruce OksolFebruary 8, 2012 at 10:09 AM

        Actually, it's both. First, no oil.

        Second, a steal. The smart operator from the East Coast can re-package these units, advertise them as in North Dakota (true), the Williston Basin (maybe), the Bakken (hardly) but the unsuspecting would not know, and most folks would gladly pay $2.00/acre -- hardly more than a Starbucks coffee -- and maybe as much as $5.00/acre if the advertising is really, really good.

        I can already envision the glossy tri-folds sent out in investor newsletters. Fancy lease documents, suitable for framing, great Christmas gifts. The possibilities are endless.

        Delete

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