Oil-rich land sells for $87M

Oil-rich land sells for $87M

On Behalf of | Jan 12, 2018 | Uncategorized |

A large land parcel has sold to an undisclosed inventory in the Louisiana Austin Chalk play region. This region, well known for its rich oil deposits, has been on the radar for those looking to purchase commercial real estate. While the buyer is currently ‘undisclosed’, it is reported that they have significant experience in drilling.

The land was previously held by an exploration and production company and the company did not disclose exactly where the land is located for privacy concerns. However, it is known that it encompasses portions of Louisiana and Texas. The Austin Chalk play area, known as a self-serving carbonate reservoir about 30 miles wide and 650 miles long, spans from Texas to the middle of Louisiana. Other purchases for thousands of acres have been made recently in the area.

The company that sold the parcel of land reportedly has another oil-rich area for sale, expecting to come available in February of this year. While the company does survey and examine these areas, it does not drill for profit specifically. It focuses on geographic mapping and assessing nutrient dense areas, such as oil and other commodities. The industry will be curious to see the interest the secondary parcel could sell for come February.

With several oil processors already drilling in the Louisiana Austin Chalk play, it is possible an existing land owner has ‘stacked’ acreage onto their existing parcel. Or, it could be a buyer new to the area. We know they are experienced in oil drilling, and, thus, that is likely how the land will be utilized. The details will eventually be revealed.

Source: businessreport.com, “85K acres in Louisiana Austin Chalk play sells for $87M,” January 4, 2018