It was hotter than Hades in N.M., July 8. But not for the reasons one might expect despite summer’s blistering heat. No, that was the day The New Mexico State Land Office fired up its July online auction, offering just 14 parcels for bid in Lea and Eddy counties. Nine of those leases were saddled with a 25% royalty rate for the first time after the new royalty law took effect in late June. But ravenous bidders were hardly dissuaded from shelling out big bucks to grab a chunk of the Permian’s Delaware before the auction’s close July 15.

Reese Energy Consulting today is following the latest from what’s been described as a landmark auction that brought home $56+ million for N.M., schools. For aggressive bidders, the increased rate barely whispered on a feather. Instead, the game was on to lock up prime, undeveloped and undrilled “white space” in the Delaware’s core. Hart Energy reports some parcels lie within the potash mineral development area, also known as the “white space” but have been carefully carved out.

Winning E&P bidders include:

• Coterra Energy ~$2 million for 160 acres in Lea County
• Civitas Resources – $3.4 million for 80 acres in southwestern Eddy County
• Avant Natural Resources – $6.25 million for 240 acres in southeastern Eddy County
• Paloma Permian – $14.86 million for 400 acres in the N.M., Delaware