Now, they drill.

In a near all-time record sale, the State of Wyoming Office of State Lands and Investments sold roughly 300 parcels of land in and near the potentially oil-rich Niobrara Formation in last week’s special auction in Cheyenne, netting $42 million for the state, just short of the record of $45 million set in May.

Goshen County dominated in mineral lease sales, auctioning 170 parcels and selling their mineral rights for a total of approximately $24.5 million.

“This is the second highest amount we have ever sold,” said head of state mineral leasing Harold Kemp. “I can’t complain. I expected a little more, but I think I was riding crest of the wave.”

While some parcels leased for as low as $1 per acre, most mineral rights sold at a range of $100 to $2,400 per acre. Big Bear Oil & Gas leased a 316-acre plot in Goshen County for $3,200 per acre. In addition to Big Bear, Mammoth Oil Company was another big buyer. Of the 25 parcels they leased, 15 were located in Goshen County.

“Goshen was a big seller,” Kemp said. “East of 1-25 is the sweet spot. It’s thermally mature and rich and is part of what was once Western Interior Seaway. It used to be filled with microorganisms, and (Goshen County) happens to be where it’s really rich in organic material.”

For the complete article see the 07-14-2010 issue.

Click here to purchase an electronic version of the 07-14-2010 paper.

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