LOGA Industry Report - Winter 2009 - (Page 45) November Mineral Lease Sale Brings $3.5 Million state Mineral Board collected more than $3.5 million at its November lease sale, showing that interest in leasing Louisiana mineral rights for energy production is still strong, though spending on leases in the Haynesville Shale natural gas area has slowed as companies prepare to develop what they’ve already leased, as reported by state Mineral Board Secretary Marjorie McKeithen. The major Haynesville Shale area lease buys began in June 2008, with collections for the four lease sales held between June and October and each ranking in the top six collection days on record, ranging from about $35 million to more than $93 million. For the three years prior to that spike in leasing collections, the average lease The sale day collection for the state was a little more than $3 million, with 14 monthly lease sale collections out of 36 between June 2005 and May 2008 meeting or exceeding that amount. That places November’s sale roughly in the top third of lease sale collections in the three years prior to the Haynesville Shale spike, though oil and gas prices have continued to fall in recent months. “Even with the economic concerns facing the country and prices for oil and gas coming down from the highs we saw earlier this year, the energy industry is still showing a strong commitment to developing the natural resources of the state of Louisiana,” said state Department of Natural Resources Secretary Scott Angelle. “As they are committed to continued exploration, so we at the Department of Natural Resources are committed to encouraging that development in a manner that attracts their business while protecting the interests of the state’s natural resources and its citizens.” Closer study of the data from the November sale shows that leasing activity in areas outside the Haynesville Shale zone closely tracks typical lease sale history from recent years. In a typical lease sale, excluding the recent run in the Haynesville Shale area, about two thirds of nominated tracts do not receive bids. In the past 12 months, approximately 62 percent of tracts nominated did not receive bids. In the previous five years, the CLASSIFICATION NOMINATED TRACTS NOMINATED ACREAGE LEASES AWARDED NO. OF ACRES AMOUNT OF CASH PAYMENTS Lease Sale November 13, 2008 State Offshore Leases State Onshore Leases State Dedicated Leases School Indemnity Lands State Agency Leases Total Sales 1 91 4 0 72 168 1,120.64 90,823.58 5,648.41 0.000 8,146.48 105,739.110 1 31 3 0 4 39 1.120.640 6,049.646 804.780 0.000 8,311.134 8,311.134 $308,176.000 $2,722,748.74 $298,286.82 $0.00 $203,626.52 $3,532,838.08 NOTE: The totals for this sale do not reflect any options that may be exercised or revisions to acreage and cash amounts that may take place after this sale date which may cause these totals to change. NOTE: Due to Hurricane Gustav, the September Sale was postponed and is now included in the October sale. 2008-2009 Fiscal Year State Offshore Leases State Onshore Leases State Dedicated Leases School Indemnity Lands State Agency Leases Total Year to Date 60 380 65 1 168 674 83,633.530 260,445.020 102,448.980 0.560 18,358.593 464,886.683 27 179 8 1 29 244 10,922.440 38,849.757 2,265.560 0.560 2,701.121 54,739.438 $5,669,129.39 $127,562,537.84 $1,115,658.62 $15,400.00 $55,368,719.42 $189,731,445.27 NOTE: The Fiscal Year totals include this sale totals and also options exercised and revisions to acreage and cash amounts that may have taken place from the date of the last sale to this state lease sale. www.loga.la | 45 LOG_T0109_E.indd 45 12/16/08 8:14:29 AM http://www.loga.la
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