Posted: Aug 3, 2012 1:00 PM by Greg Boyce
The Colorado State Board of Land Commissioners has leased more than five thousand acres of oil and gas rights in Weld County for more than $60 million dollars.
A subsidiary of Bonanza Creek Energy will pay the money for the rights on 5,638 acres over a period of five years.
The winning bid from Bonanza Creek was selected in part due to the bonus price offered for the acreage, but also because the company is operating on adjacent lands and has already developed infrastructure with access agreements in place.
"We are very pleased to be working with Bonanza Creek on this project," said Bill Ryan, Director of the State Land Board. "These lands are located in an area where there are many producing wells, and we are optimistic that this lease will generate significant revenues for our beneficiaries through
production royalties in years to come."
The money will be used to support public schools in Colorado.