At the beginning of the Osage Minerals Council’s Sept. 26 lease sale, auctioneer Galen Crum jokingly reminded attendees not to raise their own bids when trying to win a lease.
“Every once in a while, we’ll get someone who’ll try to raise their own bid,” he said to laughs. “I’ll try to help you out … but like Everett (Waller) said, we can’t stop you from bidding if you want to bid.”
It wound up being a moot point, as 29 of the 41 leases went unsold that morning.
With about 20 shareholders and producers sitting quietly in the Minerals Council chambers, Crum tried to engage the crowd and encourage bidding.
“This would be a lot more fun if you all started bidding really fast against each other,” he said with a smile after several leases lapsed without anyone making an offer.
Despite Crum’s exhortations, that fast and furious bidding did not happen. Only one lease generated more than one bid – an oil-only lease that ultimately sold for $9,500 to CEP Mid-Continent.
Of the 32 nominated oil and gas combination leases, only three were sold for a combined 480 acres. Each went for the minimum price of $4,700, or an average of $29.37 per acre.
All seven oil only leases sold, totaling 1,120 acres. Six of the seven sold for the minimum asking price of $3,600, putting the average at $27.77 per acre.
The sale’s lone gas-only 160 tract sold for $3,400.
After the sale, Second Chairman Andrew Yates confirmed that several of the unsold tracts were carryovers from the council’s previous lease sale.
The next lease sale is scheduled for Dec. 12 at 10 a.m. at Osage Casino Tulsa as part of the annual Oil and Gas Summit. Tracts may be nominated through Oct. 31 and the sale bulletin is scheduled for publication on Nov. 21.