Petrogas Co. Inc. purchased 161 acres of oil and gas leasehold in Colorado through a Bureau of Land Management (BLM) government auction, according to a Jan. 18 press release.

The leases in Lincoln County, Colo., are on a 10-year primary term, and Petrogas will pay 12.5% in royalties to the government once production begins.

Huang Yu, CEO of Petrogas, said these are the company’s first leases in Colorado.

The U.S. Geological Survey discovered this past June that Colorado has 40x more technically recoverable natural gas resources than previously estimated, the press release said.