Oil and gas mineral rights owned by the State of North Dakota are worth more than $2.8 billion, according to analysis presented to the Board of University and School Lands this week.

The estimated was prepared by MineralTracker, which is a division of First International Bank & Trust in Watford City. Minerals Services Manager Joel Brown told Land Board members it represents about a $420 million increase over the previous year, largely driven by higher prices for oil and natural gas. Brown said estimated oil reserves were relatively similar to previous reports, but natural gas production numbers were adjusted upward as the gas-to-oil ratio in the Bakken continues to rise.

The analysis divided the state's reserves into six different categories, ranging from wells that are developed and producing, to reserves that are known to exist but are unlikely to be developed given current economics.

Click hear to listen to Brown's explanation.

Brown said one other contributing factor to the increasing value of the state's mineral assets is the significant improvement in drilling and completion technology in the past decade.

Click here to listen to Brown's comments.

Brown estimates the state will realize more than $10 billion in royalties in the coming decades, as well as billions in extraction and production tax revenue.

Click here to see a chart categorizing the state's oil and gas assets.

Click here to view this article in the WDEA Weekly Newsletter