North Dakota’s Record-Setting Lease Sale in A Vibrant Oil & Gas Market

The February 2025 oil and gas lease sale, conducted by Efficient Markets on behalf of the State of North Dakota, has officially set a new record. The auction generated $13.6 million in high bids, surpassing the previous record of $8.3 million from August 2019 and reaffirming North Dakota’s status as a premier energy investment destination.

This wasn’t just another routine sale. Every one of the 136 tracts on offer received bids, and some saw intense back-and-forth competition. The results highlight renewed industry confidence and a bullish outlook on the state’s oil and gas assets.

The Hottest Tracts on the Market

While every parcel saw interest, a number of them drew particularly high bids.

One of the most sought-after leases, Tract 2298 in the NW/4 of S25-T154-R101, Williams County, covered just 83.53 acres but commanded a winning bid of $2.51 million, translating to a striking $30,073 per acre. Another high-value tract, Tract 2277 in the NE/4 of S28-T153-R102, McKenzie County, sold for $1.59 million on 159 acres, working out to $10,000 per acre.

Similar premiums were seen across McKenzie County, with Tract 2278 in the NE/4 of S28-T153-R102 going for $1.46 million, Tract 2273 in the SW/4 of S15-T152-R104 at $1.12 million, and Tract 2272 in the SE/4 of S15-T152-R104 closing at $960,000. The strong per-acre bids, especially along the Missouri River, speaks to the enduring value of North Dakota’s resource-rich geology.

Who’s Investing in North Dakota Oil & Gas?

The biggest spender of the auction was Phoenix Energy One, LLC, dba Phoenix Energy, which walked away with more than $10 million in leases. Phoenix Energy is an independent exploration and production company with a growing footprint in U.S. shale plays. Their aggressive bidding signals a long-term commitment to expanding operations in North Dakota.

Also making a significant move was Incline Energy Partners II, LP, investing $1.12 million in leases. Incline is a privately held oil and gas investment firm specializing in acquisitions and development in key basins across the U.S. Their participation reflects a strategic interest in the region’s proven reserves.

Another notable player, Kraken Oil & Gas II LLC, spent $960,000 in the sale. Kraken, a Williston-based operator, has been steadily expanding its position in the Bakken shale and Williston Basin, with a track record of focusing on optimizing well performance and maximizing resource recovery.

Another Record-Breaking Sale in the Region

This landmark North Dakota sale follows closely on the heels of Montana’s December 3, 2024 lease sale, which generated $5.4 million in high bids—the largest oil and gas lease sale in Montana in recent years. The back-to-back success of these sales demonstrates the strength of investor confidence in the region and underscores the attractiveness of the Williston Basin and surrounding plays.

Read more about the Montana lease sale here: Montana Oil & Gas Lease Sale Hits $5.4 Million.

For investors, landowners, and industry professionals, this sale serves as a clear indicator of strong capital inflows into North Dakota’s energy sector. The market is showing confidence, and companies are making meaningful financial commitments, betting on long-term production potential.

To stay informed about upcoming government oil and gas lease sales, visit www.efficientmarkets.com and register for notifications. Don’t miss your chance to participate in future government lease sale opportunities.