Want an oil and gas lease? Try bankruptcy auctions

Royalty-earning oil and gas sites in seven states will be up for sale this week in a U.S. Bankruptcy Court auction in Oklahoma City, according to the Daily Oklahoman:

There are royalties on about 75 wells on the list for Thursday’s sale. Most are in Oklahoma, but Texas, Louisiana, Kansas, Arkansas, Wyoming and Mississippi also are represented.

“This is a very large auction,” [Auctioneer Louis] Dakil said. “Every operator in the state’s on here.”
Kandy Lawson, financial analyst at Pinnacle Energy Services LLC, said such auctions typically draw people who already are well-versed in the oil and gas industry.
“You have to have some knowledge of the property before you bid, if you’re going to do well,” Lawson said.

Bankruptcy doesn’t necessarily mean good deals since there’s no shortage of those with industry experience at such auctions. So the uninitiated bidder may be a bit disappointed.