July mineral sales tick up

The Louisiana Mineral and Energy Board conducted its first lease sale of the fiscal year Wednesday, and the results were bittersweet for both state officials and the oil and gas companies that regularly bid on the public lands. As state and federal officials continue debating the merits of a ban on new offshore drilling, the new fiscal year, which kicked off July 1, had an inaugural sale with absolutely no offshore tracts listed for consideration. The leases that were awarded, however, brought in more than $4.5 million for the state, an increase of $1.3 million over the July 2009 sale. There are also signs that investors are assigning more value to available state land. During the last July sale, the average cost per acre was about $600. At this month’s sale, officials moved 25 leases covering a total of 2,924 acres—an average payout of roughly $1,500 per acre. While there remains interest in the area around the Haynesville Shale gas play in north Louisiana, properties closer to the coast are still getting more attention than usual. Of the 25 tracts awarded this week, 12 are in north Louisiana and 13 are located in southern parishes. The board sold leases in Bienville, Caddo, Calcasieu, Cameron, Iberia, Iberville, Natchitoches, Plaquemines, Sabine and St. Mary parishes. —Jeremy Alford