ABBEVILLE — The Vermilion Parish School Board on Thursday accepted an annual oil and gas revenue report without opposition from mineral consultant Jim Veazey, of Veazey & Associates.
During the presentation, Veazey said that during the past fiscal year from July 2010 to June, the school district picked up eight new leases for oil or natural gas exploration across the parish but also lost at least three leases as wells played out.
Wells no longer operating are located at Freshwater Bayou, Gueydan and Outside Island, which is being plugged, Veazey said.
The only lease over the past fiscal year located on Section 16 lands was located at East White Lake, Veazey said.
Looking ahead to the future, the mineral consultant said, it is hard to predict if oil and gas lease revenue levels would return to 2007-2008 level of $8.4 million and 2008-2009 level of $6.3 million.
The current projection for oil and gas lease revenue is about $2.2 million for 2011-2012, he said.
“Times are uncertain, and you have had wells dying out,” Veazey said. “We are trying to do the best we can and strive for accuracy, and we are budgeting about $2.2 million for next year.”
The school district collected $3.9 million in the prior year of 2010-2011, according to Vermilion Parish School District Chief Financial Officer Philip Sellers.
Veazey said two wells in the Kaplan area are the most lucrative for the district, producing $800,000 annually in revenue.