WVDNR accepts bids from oil companies
The West Virginia Division of Natural Resources accepted bids from two companies for oil and gas rights under the Conaway Run Wildlife Management Area on Nov. 21 in Tyler County.
Antero Resources, an independent exploration and production company based out of Denver offered a $12,019 per acre bid while a global E&P company located out of Houston, Noble Energy. Offer a $6,002 per-acre bid for rights under the 518-acre wildlife area in the district of Centerville.
Both of the companies also offered a 20 percent royalty on what is extracted.
Even though the companies are aiming to obtain rights beneath the state-owned area, it was stated that the drilling would not occur on state property. However, vertical drilling would occur offsite and the minerals would be extracted by horizontal drilling underneath the property.
The leases would last for three years though it was said that partions of the lease would be negotiable.
The DNR is hoping to finalize the lease by the end of the year.
On Aug. 6, a request was sent to Gov. Earl Ray Tomblin from the DNR to solicit bids for a lease to develop the oil and gas interests in the Marcellus shale which was approved on Sept. 18, which was just days before DNR opened bids for the rights under sections of the Ohio River.
Antero was awarded the winning bid which was $12,019 per acre with a 20 percent commission on what is extracted.
It was reported that whatever proceeds the DNR sees will be put back into the state parks.