In its first lease sale of the new fiscal year, the July oil and gas bids received by the state Mineral Board last week brought in more than $3.2 million for Louisiana’s coffers. It’s a dramatically different take than the state enjoyed just a year ago. In July 2008, the Mineral Board collected a record-setting $48.7 million, prompted chiefly by the massive natural gas play in north Louisiana’s Haynesville Shale area. This year’s July sale is the lowest on record since 2007, when the state collected $2.5 million.
In all, 25 leases covering more than 5,300 acres were awarded last, out of 48 nominated tracts spanning 49,772 acres. Of the 25 leases sold, 20 were for south Louisiana locales. There were 13 parishes that received money from the energy leases, including East Baton Rouge, which is somewhat of a rarity. Mark A. O’Neal purchased roughly five acres in the northern part of the parish, around Scotlandville and Port Hudson, for more than $3,800.
Four of the five north Louisiana leases that were sold last week are located in Caddo and DeSoto parishes, the area surrounding the Haynesville Shale. State officials contend natural gas lease sale prices remain strong in the area and this month’s average lease around the shale weighed in at about $4,800 an acre. Though the current lease prices are a far cry from summer 2008, they are still very strong compared to previous sales in the area. The average lease was $532 an acre in 2007 and about $252 an acre in 2006.—Jeremy Alford
