In 2006, leases in the Uinta and Piceance basins, in northeastern Utah and northwestern Colorado, enjoyed the highest level of industry interest throughout the Rocky Mountain region. That's one of the trends highlighted in a recent Wood Mackenzie study on Rocky Mountain competitive lease-sale activity.

The international consulting group reviewed federal lease sales administered by the Bureau of Land Management (BLM) and state lease sales in the Rocky Mountain states of Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming and northwestern New Mexico.

During 2006, 7,478 leases were issued by state and federal agencies. Bonuses totaled $212 million for 3.7 million acres, at an average cost of $57 per acre. The Uinta-Piceance area (including the Utah Hingeline play to the west) led the region in total bonuses, total acreage and average price per acre. Companies pledged $86.9 million on Uinta-Piceance leases and took home 792,753 acres at an average per-acre price of $110.

The most expensive parcel sold in the Rockies in 2006, on a per-acre basis, was a 384-acre tract in Garfield County, Colorado, in the Piceance Basin. Gillette, Wyoming-based Pacer Energy bid $6,100 per acre for the asset. Indeed, the Uinta-Piceance area accounted for six of the 10 most expensive per-acre bids.

Two of the six tracts were in Sevier County, Utah, home of Wolverine Gas & Oil's Covenant Field discovery that opened the Hingeline play. Per-acre prices of $3,000 and $2,700 were paid by Salt Lake City-based International Petroleum LLC for a 240-acre tract and a 40-acre piece, respectively.

Wyoming's Greater Green River Basin was the second-most popular area for leases. Companies pledged $36.8 million in this province for 574,000 acres, yielding an average price of $64 per acre. Green River leases accounted for 17% of total dollars spent and 15.5% of total acres leased. The Williston Basin rounded out the top three areas of interest, fetching $33.7 million on 433,000 acres.

Wood Mackenzie reports that, during 2004-06, total lease sale bonuses and total acreage both increased, but acreage enjoyed a heftier rise. That led to a decline in the average price per acre from $73 in 2004 to $57 in 2006.

Other trends of note are the fall-off in San Juan Basin activity, which dropped from $32.9 million in bonuses in 2004 to $2.8 million in 2006, even though total leased acreage rose from 23,000 acres in 2004 to 54,000 in 2006.

During the same period, the Paradox Basin in southern Utah and Colorado enjoyed a nice jump from $4.6 million in bonuses in 2004 to $13.4 million last year, on 228,000 and 196,000 leased acres, respectively.

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