Random Update On Leasing In McKenzie County

This was a nice way to start the morning. A reader sent me this note:

I just wanted to inform you of the value of leases currently on the reservation in McKenzie County. We just had a significant amount of acres become available due to only what I can assume was a huge mistake by the oil company had on these acres.

The BIA conducted the bidding process and the winning bid was $27,300/acre with 22% royalty.

This was for more than 100 acres. We were simply amazed. These same acres generated a $500 per acre 18% royalty extension October 2010.

This is very much in line with earlier posts that producing acreage in the better McKenzie was going for $34,000 to $40,000/acre. 

I remember when royalties were as little as 1/8th. A huge congratulations to the mineral owner(s).