Devon pays $16 million for leases in BLM’s land sale in New Mexico

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Devon Energy was one of the top spenders in a recent government sale of oil and gas drilling rights on 10,000 acres of federal lands in Kansas and New Mexico.

The auction attracted more than $78 million in high bids and Devon was successful in obtaining drilling rights in New Mexico, the nation’s second-largest oil-producing state. Pride Energy Company of Tulsa was also successful in winning some of the leases in New Mexico.

Promontory Exploration LP of Midland, Texas was next highest to Devon Energy. It paid $18.2 million for six leases.

At least 19 parcels of land were sold at auction in New Mexico and represented 99.9% of the high bid total of $78.81 million reported the Bureau of Land Management. Devon Energy paid the highest price for a parcel—$16.2 million for 280 acres in Eddy County in southeast New Mexico. It was the company’s only purchase in the sale.

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Other companies that obtained some of the 3,279 acres of New Mexico leases were Legion Production Partners LLC of Denver and Federal Abstract Company which bids for other companies.

Nearly 6,800 acres were offered in northwest Kansas and 18 of the parcels attracted bids, yielding a combined $70,800 reported Reuters. 

The news agency said all but two of the parcels sold for the minimum price of $10 an acre and all but one went to Murfin Drilling Company of Wichita.

The sales were carried out by the Bureau of Land Management despite protests filed by several environmental groups.