Serving The Bakken And Beyond

Producer Kraken Oil Pays $200/Acre For Richland County Acreage

A $200-an-acre bonus paid for a 640-acre tract in Richland County accounted for more than half of the total revenues from the June 4 Montana state oil and gas lease sale.

Kraken Oil & Gas, LLC of Houston, the most active driller in that county now, paid a total of $128,000 for the lease in Sec. 16, T25N-R58E.

With bids averaging $43.80/acre for a total of $241,534, tracts in Fallon and Toole counties netted bids for leases on 5,514 acres.

The sale was conducted by the Montana Dept. of Natural Resources and Conservation in Helena.

Northwestern Energy of Sioux Falls, SD posted the two highest bids, paying $45/acre in Toole County for 160 acres in Sec. 20, T37N-R4W, and $30/acre for 320 acres in Sec. 17, T37NR-4W.

The remaining tract of 320 acres went to high bidder Farleigh Oil Properties of Casper, which paid $12/acre in Sec. 35, T34N-R3W.

Primary Fuels LLC of Tulsa dominated the high bidding for all eight tracts in Fallon County with the highest bid of $34/acre for two 640-acre tracts in Sec. 36, T9N-R59E. It also paid $28/acre for 320 acres in Sec. 6, T8N-R60E.