Friday, February 12, 2010

LA Mineral Board Lease Sale Results

I took a look at the most recent sales of Haynesville area properties through the Louisiana State Mineral Board auctions for the past two months and found some interesting results.  I've summarized the winners below.  They are all in areas with Haynesville units or near Haynesville activity.  All winning bids are three year leases with 25% royalties.  Please keep in mind that the bids listed below were the highest bids and therefore the winning bids. Other bids may have come in lower.


There is a fairly wide price discrepancy for the Caddo Parish land in the February sale.  That property is in the Shreveport metropolitan area and is around and in Cross Lake.  There are provisos in the leases that the auction winner cannot use that land to actually drill wells, which likely reduces their value.

The auction results from the "fatter" parts of the Haynesville Play show more promising results, with lease bonuses ranging from $10,613 to $15,618.

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