December Louisiana lease sale rallies, attracting $482,109 in bids
IHS, Energy News on Demand, Dec. 15, 2015
The sum of high bids at the December 9 Louisiana lease sale significantly exceeded those of the October and November sales combined, garnering $482,109.50 from the sale of seven tracts.
The drilling rights for 1,485.43 onshore acres were awarded by the Louisiana Department of Natural Resources at the sale. The cost per acre averaged $330.70.
As in months past, Hilcorp Energy purchased the majority of the acreage for sale. The large, privately held operator leased four of the seven tracts of land, or 654.43 acres, for $229,050.50. The acreage covers one tract in Terrebonne Parish and three tracts in Cameron Parish. One of the three tracts in Cameron Parish covers portions of sections 1 and 2 in 15s-3w, within four miles west of neighboring Vermilion Parish. Only a single gas well completed in the late 1970s has ever been successful in these sections. The 15,000-ft vertical well recovered a cumulative 3.6 million cu ft of gas through Lower Miocene perforations at 12,510-12,516 ft.
Castex Energy Partners LP purchased two tracts, which cover a cumulative 633 acres. Both Terrebonne Parish tracts were acquired for $193,065.
The third and final bidder at the December sale was The Meridian Resource & Exploration LLC, which purchased 198 acres in St. Mary Parish for $59,994. December's sale surpassed September's total of $476,400 but did not come near August's high bids, which totaled $3.1 million.
To view tract-by-tract results for Louisiana lease sales, visit http://reports.dnr.state.la.us/reports/rwservlet?SRMN9031B_p.
The next monthly lease sale is set for January 13.