Action slow in oil lease sale

Exploration outfits from Denver and New Mexico accounted for all the action in a quiet sale of oil and gas leases in Nevada last week.

The Bureau of Land Management sold leases on 23 parcels totaling 34,287 acres during its quarterly auction in Reno. The leases sold for $123,360.

J Bar Cane Inc. of Stanley, N.M., successfully bid for leases on 16 of the parcels. Its interest was focused on oil exploration in Eureka County.

Albo Inc. of Denver, meanwhile, acquired leases on seven parcels. Its interest was focused on Elko County.

More than three quarters of the 101 parcels that the BLM put out for lease didn't draw any interest.

Bidding was slower last week than it had been during the last auction in March. At that sale, the BLM auctioned leases on 45 parcels.

The oil and gas leases are for 10 years with annual payments of $1.50 acre during the first five years and $2 an acre after that until production begins.

The BLM levies a royalty of 12.5 percent on oil wells producing from federal land.


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