Enverus Blog

Insights across the energy value chain

Followers of the Niobrara no doubt remember the WY State lease auctions that took place last summer.  There were four all together, with a few bringing in over $45MM.  It has been about 6 months, but WY finally held another earlier this month.  I put together a few slides below summarizing the results.

First, county level results.

Converse County Brings In Big Money At The Most Recent Lease Auction

 

The high bid of $7,750  in Converse was made by Maurice Brown.  It was a 480 acre section.  In the past auctions, the DJ Basin was the big winner bringing in many bids at greater than $3,000/acre.  It was interesting this time around seeing Converse County (Powder River Basin) bring in the high bids.  The DJ Basin average $430/acre.  What’s more, there were several unleased plots in Goshen and Platte.  I imagine they came from the north or north west.  We have seen over the past year several offerings in the area between the PRB and DJ.  Those offerings combined with the thinning of activity in the area could speak to a lack of potential.

Here is the same chart but at the operator level.

Converse County Brings In Big Money At The Most Recent Lease Auction

Chesapeake is the big money spender as far as per acre is concerned with $1,559/acre and a max bid of $3,600/acre.

I will post this data in the Niobrara Unconventional Update Regulatory folder.  This data does not come from the state in a consumer friendly manner.  The data from the other auctions is in the folder as well.

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