Chord Progressions in the Williston
After three canceled oil and gas lease auctions under the current Administration, the BLM finally got around to reviewing and awarding the highest bidders for parcels in Wyo., Colo., N.M., Nev., and the Dakotas/Mont. The end-of-June sale, which offered 80% less acreage than originally cited, also was the first to roll out the fed’s newly increased royalty rate of 18.75 percent vs 12.5%. This, as part of new leasing reforms announced last November.
Reese Energy Consulting today is following the latest news from the BLM, which now has released its June lease sales results. Producers clearly answered the siren’s call in Wyo., where 81 of 122 parcels totaling 119,565 acres brought in $13,021,696 over two days. Next, the Dakotas and Mont., where 19 of 23 parcels covering 3,405 acres across both states raked in $5.35 million. The highest bidder here, shelling out $2.346 million for 68.53 acres in Mountrail County, N.D., was Houston-based Chord Energy, marking its first acquisition following the March $6 billion merger of equals between Whiting Petroleum and Oasis Petroleum. Chord currently operates 972,000 net acres in the Williston Basin with 167.8 MMBOED in production.