MMS reports results of Lease Sale 207 in western gulf

The US Minerals Management Service has awarded 313 oil and gas leases in the Western Gulf of Mexico in its Lease Sale 207 held Aug. 20, 2008.

By OGJ editors
HOUSTON, Jan. 23 -- The US Minerals Management Service has awarded 313 oil and gas leases in the Western Gulf of Mexico in its Lease Sale 207 held Aug. 20, 2008.

Fifty-three companies submitted a total of 423 bids on 319 tracts in the Western Gulf of Mexico. MMS accepted high bids totaling $483,959,404. Total high bids submitted on all tracts was $487,297,676, but MMS rejected high bids totaling $3,338,272 on 6 tracts as "insufficient for fair market value."

Statoil Gulf of Mexico LLC's bid of $61,110,000 for deepwater Alaminos Canyon Block 380 was the highest bid accepted on a single tract. The parcel, which received 3 bids, is in deep water (greater than 6,562 ft or 2,000 m).

The top five companies with the highest number of accepted high bids for Sale 207 were ExxonMobil Corp., which bid on 128 tracts totaling $125,264,000; Hess Corp., 22 tracts totaling $14,162,407; Chevron USA Inc., 20 tracts totaling $127,281,322; Devon Energy Production Co. LP, 20 tracts totaling $6,671,461; and Anadarko E&P Co. LP, 19 tracts for a total of $14,806,839.

The top five companies with the highest total bonus amount accepted for Sale 207 were Chevron USA Inc., 20 tracts with bonus amounts totaling $127,281,322; ExxonMobil Corp., 128 tracts for $125,264,000; Statoil Gulf of Mexico LLC, 5 tracts for $87,352,000; LLOG Exploration Offshore Inc., 11 tracts for $23,172,800; and Shell Gulf of Mexico Inc., 15 tracts for a total of $20,199,985.

MMS said funds received from the sale will be "distributed to the U S Treasury's general fund, shared with the affected states, and set aside for special uses that benefit all 50 states."

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