Wyo buying checkerboard sections

[Irrelevant]

I'd be surprised if it sold for more than 100 million.

The only big operators up there are EOG, DVN, and CHK. CHK isn't going to last very much longer, and I don't see either EOG or Devon making a big WY acquisition. Plus they would be interested only interested in the Powder, my sense is that this is the APC asset, so probably not much traction from those players. Possibly some DJ operators would be interested but I would think think they would just want the DJ assets.

I'm interested to learn more and see how it plays out.

View attachment 128468

Exclusive: Occidental seeks up to $700 million for Anadarko assets in Wyoming, Colorado - sources

Occidental Petroleum Corp is soliciting bids for oil and gas properties in Wyoming and Colorado that it acquired when it purchased Anadarko Petroleum, hoping the assets will fetch up to $700 million, according to people familiar with the matter.

www.reuters.com

 

[mtmiller]

You can currently access the Anadarko checkerboard.

 

[Deleted member 28227]

Exclusive: Occidental seeks up to $700 million for Anadarko assets in Wyoming, Colorado - sources

Occidental Petroleum Corp is soliciting bids for oil and gas properties in Wyoming and Colorado that it acquired when it purchased Anadarko Petroleum, hoping the assets will fetch up to $700 million, according to people familiar with the matter.

www.reuters.com

Publilius Syrus might have had something to say about that price tag.

 

[NYyotekiller]

I’m all about buying the 1 million acres of ground, but the 4 million acres of mineral rights seems like a bad idea to me.

If an energy company is selling mineral rights to anything you can bet they aren’t worth it.

 

[BuzzH]

I’m all about buying the 1 million acres of ground, but the 4 million acres of mineral rights seems like a bad idea to me.

If an energy company is selling mineral rights to anything you can bet they aren’t worth it.

I don't know about that...if you've ever spent any time in the checkerboard country, there is someone making a boatload of money out there.

The only thing that concerns me is the state statute around the state only being able to hold 3.1 million acres of State Trust Lands. This acquisition will push them about 1 million acres over the cap...either the cap would need to be raised via amending state statute and/or these would have to be a different type of state land other than state trust lands.

If acquiring this land means the State Land Board would have to liquidate another 1 million acres of their current state trust lands, I don't believe I could support this.

 

[slatebuilder]

What does it take for Wyoming to change a statute so that this is legal?

How does the state budget/finances look for such a purchase?

Should the state be able to make the statutory changes, what are the odds of Wyoming picking up this much property in a single swoop?

 

[VikingsGuy]

What does it take for Wyoming to change a statute so that this is legal?

How does the state budget/finances look for such a purchase?

Should the state be able to make the statutory changes, what are the odds of Wyoming picking up this much property in a single swoop?

The same bill authorizing the purchase could also adjust the cap if that is what they intend.

 

[Arctic_Snow_Seeker]

meh. It would be more exciting if it was land that didn't already allow access. Lets get some of that land around Hanna or Rawlins.....

 

[Deleted member 18333]

I’m all about buying the 1 million acres of ground, but the 4 million acres of mineral rights seems like a bad idea to me.

If an energy company is selling mineral rights to anything you can bet they aren’t worth it.

The mineral rights are where the money is at. The land is worth nothing compared to the mineral rights.

 

[Deleted member 28227]

The mineral rights are where the money is at. The land is worth nothing compared to the mineral rights.

Meh, this market... gassy play... plus it’s pretty crappy rock. I bet the wind farms are doing better in that area.

https://www.efmidstream.com/sites/default/files/resources/resources_oilshaleresourcefactsheet.pdf

 

[mdhunter]

Wait...as an east coast guy I have always enjoyed corner hopping

 

[Oak]

meh. It would be more exciting if it was land that didn't already allow access. Lets get some of that land around Hanna or Rawlins.....

The current owner allows access and is looking for a buyer. What makes you think it will remain open if sold to another company?

 

[NYyotekiller]

I don't know about that...if you've ever spent any time in the checkerboard country, there is someone making a boatload of money out there.

I disagree. Having a first hand experience in the engineering/design side of things with Anadarko, Chesapeake, and Repsol. When they start selling or getting rid of holdings, it’s not because they are doing well and making tons of money. It’s because their team of bean counters foresee a downturn in the market and want to get out so they can invest somewhere else or in a totally different market. That’s simply how the oil and gas industry operates.

We had this happen here about 5 years ago with the Trenton Black River, and the Marcellus shale formations with the above mentioned companies and too many other smaller ones that have since dissolved.

 

[Arctic_Snow_Seeker]

The current owner allows access and is looking for a buyer. What makes you think it will remain open if sold to another company?

Because historically it has been by previous owners. For the price it will go for no rancher would be interested so that leaves an oil/gas company.

If the state is going to start buying land how about someplace that doesn’t have access and has something other than wild horses and antelope?

 

[mtmiller]

I’m all about buying the 1 million acres of ground, but the 4 million acres of mineral rights seems like a bad idea to me.

Split estate can bite the surface owner in the ass.

 

[mtmiller]

Because historically it has been by previous owners. For the price it will go for no rancher would be interested so that leaves an oil/gas company.

Or a billionaire liking the 1:1 match of Fed/private and all the access that goes with it.
I am not saying it is the most valuable land in Wyoming, but the owner has the opportunity to control a pile of country.

 

[npaden]

Or a billionaire liking the 1:1 match of Fed/private and all the access that goes with it.
I am not saying it is the most valuable land in Wyoming, but the owner has the opportunity to control a pile of country.

American Prairie Reserve South!

 

[Oak]

Because historically it has been by previous owners. For the price it will go for no rancher would be interested so that leaves an oil/gas company.

There was a 20,000-acre parcel on the Roan Plateau in western Colorado that once was a very popular hunting area for the locals around Rifle. It was owned by you and me and managed by the BLM, but was acquired in the 1980s by Unocal through the process of patenting oil shale claims. A 1985 court decision provided 20 years of public access to the lands. Another energy company, Encana, subsequently acquired the property after Unocal abandoned their oil shale efforts, and Encana made plans to close access after the 2005 hunting season due to liability concerns. However, they reconsidered after a state representative reached out to them over public outcry. They were able to reach an access agreement with CDOW and the 20,000 acres remained open. In 2018 the property was sold to Caerus Oil and Gas who promptly closed access to the public. That's how quickly it can happen.

 

[madtom]

Because historically it has been by previous owners. For the price it will go for no rancher would be interested so that leaves an oil/gas company.

If the state is going to start buying land how about someplace that doesn’t have access and has something other than wild horses and antelope?

The rest of the checkerboard not owned by Anadarko is mostly owned by Rock Springs Grazing Assn, Overland Trail Cattle Co, and other grazing-oriented folks. Go ahead and see if you can access that...

Also, google elk area 100 and tell me there’s nothing but pronghorn there.

 

[MTGomer]

American Prairie Reserve South!

Woofs and bisons and the hipster libs that like them, and other non native vermin are going to drive out what belongs here and that’s cattle and sheep damn gamut!