Oh, By The Way ... That BLM Auction in California: $10/Acre

Updates

November 26, 2016: the Monterey Shale is "much ado about little."Harold Hamm: there's a reason the Monterey Shale is not being developed.
 

Original Post

 

Remember that story from Bloomberg saying Monterey Shale was the next BIG THING and would overtake the Bakken and Eagle Ford combined?

A reader sent me the results of the recent Califonia/BLM lease sale in Monterey County. It speaks volumes how incredible this field is:

West Coast Land Service, Bakersfield, paid the highest total bid price, $23,200 for a 2,320-acre parcel.  That was also the highest amount per acre at $10 per acre.  The parcel is located in Monterey County.

It looks like the BLM almost had to give it away, or pay someone to take if off their hands, and hope royalties would cover the loss.

For newbies, acreage in the Bakken is going for $5,000 to $15,000/acre.