By OGJ editors
HOUSTON, Mar. 19 -- Apparent high bids totaling $315.5 million were offered for 561 offshore tracts at Lease Sale 185 for the central Gulf of Mexico, the US Minerals Management Service reported Mar. 19.
MMS officials received 793 bids totaling $414.7 million from 74 companies at the sale. That compared with 697 bids totaling $442.4 million from 69 companies during the last central gulf lease sale a year ago. High bids in that previous sale totaled $363.2 million.
The latest sale encompassed 4,460 blocks covering 23.4 million acres off Louisiana, Mississippi, and Alabama. The blocks are 3-210 miles offshore in 4 m to more than 3,425 m of water.
MMS estimates undiscovered hydrocarbons in the sale area to be 270-650 million bbl of oil and 1.59-3.30 tcf of natural gas.
There was a fairly even mix of major integrated companies and independents participating in the sale, MMS statistics indicated.
A group led by Hunt Petroleum (EAC) Inc. submitted the highest single bid of $8.2 million for a South Marsh Island Area, South Addition lease. Chevron USA Inc. was second with a $7.75 million bid for a Green Canyon block Unocal held both the third and fourth positions with bids of $7.35 million and $7 million for two Green Canyon blocks. Unocal submitted the bids on behalf of itself, Kerr-McGee Oil & Gas Corp. and Ocean Energy Inc.
The sale's final notice included a continuation of recent royalty suspension measures designed to increase domestic natural gas and oil production.