Niobrara Shale minerals fetched a record price of $5,850 per acre for a 320 acre parcel inWeld County, CO. Dually noted is the fact that the average price in the Colorado Auction was $495 per acre across a total of almost 37,000 acres leased. The peak number is likely very close to production or in an area where the bidder is very confident there will be a well soon.
After the auction, the state also moved to begin the process of auctioning off the minerals at the Lowry Range east of Aurora, CO. The range is of interest to oil & gas companies that are leasing across Adams, Arapahoe, and Douglas counties. I’m sure the state is chomping at the bit for the opportunity to get almost $6,000 an acre. That won’t happen asWeld County is more proven, but we should get some indication of value from the auction.
Chesapeake permitted 26 units in Douglas and Elbert counties recently, so we’re a little closer to knowing how prospective the area is south of Denver. Watch the public auctions for an indication, but drilling is the only real way to discern value.
The Colorado State Land Board’s latest mineral rights auction brought in a record per-acre bid of $5,850 for an 320-acre parcel in Weld County, the center of Colorado’s fledgling Niobrara oil play.
The quarterly auction of leases to state-owned minerals, held Aug. 18, involved 36,806 acres and an average bid of $495 per acre.
Read the full news release at bizjournal.com
The Colorado State Land Board is poised to hire Meagher Energy Advisors Inc. to help the agency auction off mineral rights under the 26,000-acre Lowry Range, east of Aurora, to energy companies interested in searching for Niobrara oil under the old bombing range.
Payments for a lease, allowing access to the range and royalties on oil or natural gas discovered under the range, could bring the agency more than $400 million over the next 30 years, according to the land board.
Read the full news release at bizjournals.com