Collective Bids Top $4 Billion as Permian Basin Demand Reaches Historic Peak

The United States Bureau of Land Management (BLM) New Mexico State Office today concluded its May 20, 2026 federal oil and gas competitive lease sale, which set new records for per-acre high bids and generated total competitive bids of approximately $4.008 billion — an unprecedented result reflecting surging operator confidence in the Delaware Basin and broader New Mexico Permian play.

The sale drew participation from major public companies, well-capitalized private operators, and emerging independents. Industry observers noted that bidding intensity exceeded even the most bullish pre-sale forecasts, with several tracts attracting bids well in excess of $300,000 per acre.

TOP BIDDERS

Bidder	Net Acres	Total Bid Amount	Notes
Devon Energy Production Company LP	16,296.69	$2,633,206,599	Public (NYSE:DVN)
Federal Abstract Company	5,154.40	$1,143,009,275	Nominee*
Buffalo Frontier LLC	6,214.10	$144,103,740	Nominee*
Veer Capital Partners LLC, a Garnet Energy Capital affiliate	240.70	$26,768,356	Top Private Buyer
* Sources with direct knowledge of the bidding process indicate that Federal Abstract Company and Buffalo Frontier LLC participated as nominee entities on behalf of public companies.

GARNET ENERGY CAPITAL: A STANDOUT AMONG PRIVATE OPERATORS

Among privately held entities, Houston-based Garnet Energy Capital, through its affiliate Veer Capital Partners LLC, emerged as the most successful buyer, securing 240.70 net acres across multiple tracts in a highly competitive bidding environment.

Vignesh Proddaturi, Garnet's Managing Member, said the results reflect the firm's long-held conviction in New Mexico's Permian Basin as a core growth area.

"We couldn't be more excited about today's outcome. The New Mexico Permian is not just a near-term opportunity — it is the cornerstone of Garnet's long-term growth strategy along with other unconventional basins. These acreage positions give us a meaningful foothold in one of the most productive hydrocarbon basins in the world, and we intend to build on this platform aggressively."

— Vignesh Proddaturi, Managing Member, Garnet Energy Capital LLC

Proddaturi noted that the firm had been methodically evaluating the New Mexico lease sale for several months and was prepared to move with conviction on tracts it had identified as strategically valuable.

Keith Wiles, Garnet's Vice President of Land, underscored that the company is not content to rest on today's success.

"We are well capitalized and actively looking for more opportunities across the Lower 48 unconventional plays — whether through future federal lease sales, farm-ins, or AFE/lease acquisitions. Today was a strong start, but it's just that: a start. There is a lot more we want to accomplish in the Permian."

— Keith Wiles, Vice President of Land, Garnet Energy Capital LLC

MARKET CONTEXT

The May 2026 sale is the latest in a string of high-demand BLM New Mexico lease auctions as operators race to secure undeveloped federal acreage in the Delaware and Midland Basins. Per-acre bid figures for premium tracts in this sale eclipsed $300,000 per acre, a level that surpasses prior records and signals continued robust operator appetite for New Mexico inventory.

The BLM will process winning bids in the coming weeks before issuing formal lease agreements. Lessees are required to meet bonus payment obligations and satisfy first-year rental requirements prior to lease execution.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260528318617/en/

MEDIA CONTACT

Garnet Energy Capital LLC

Houston, Texas

deals@garneten.com

Garnet Energy Capital Earns Success at Record Breaking BLM Oil and Gas Lease Sale