South Louisiana dominates monthly oil and gas sale

Of the 13 oil and gas leases awarded by the state during its November sale, 11 were located in South Louisiana. It’s the first sign in months that action around the Haynesville Shale in North Louisiana might be beginning to cool a bit, prompting land men to look for investments south of Interstate 10. Overall, the state Mineral Board collected more than $2.6 million from 13 leases statewide covering 1,380 acres. That brings the total collected by the board during the fiscal year that began July 1 to $25.3 million. It’s a considerable dip when compared to November 2008, when the board brought in $3.5 million for a year-to-date total of $189 million, which is when national interest in Haynesville was peaking. That natural gas formation in north Louisiana is expected to become the nation’s top-producing field within the next six years. When this month’s sale is compared to November 2007, however, which is a more appropriate contrast, the numbers shake out a bit better. Two years ago, the Mineral Board collected $1.1 million to bring the year-to-date total to $14.4 million.—Jeremy Alford