Central gulf sale set for Mar. 17

The U.S. Minerals Management Service has scheduled a central Gulf of Mexico lease sale for Mar. 17 in New Orleans. Sale 172 will offer 3,758 blocks covering 20.13 million acres 3-200 miles off Louisiana, Mississippi, and Alabama. MMS said that 863 blocks in 3-400 m of water will be offered for 5-year terms and 162/3% royalties; 105 blocks in 400-800 m of water for 8-year terms and 12% royalties; and 2,790 blocks in more than 800 m of water for 10-year terms and 12% royalties.

Nov. 30, 1998

The U.S. Minerals Management Service has scheduled a central Gulf of Mexico lease sale for Mar. 17 in New Orleans.

Sale 172 will offer 3,758 blocks covering 20.13 million acres 3-200 miles off Louisiana, Mississippi, and Alabama.

MMS said that 863 blocks in 3-400 m of water will be offered for 5-year terms and 162/3% royalties; 105 blocks in 400-800 m of water for 8-year terms and 12% royalties; and 2,790 blocks in more than 800 m of water for 10-year terms and 12% royalties.

It estimates that the unleased tracts could contain 150-440 million bbl of economically recoverable oil and 1.53-4.39 tcf of gas.

Rental and royalty rates are unchanged from the last central gulf sale, but the minimum bid for tracts in more than 800 m of water was increased to $37.50/ acre from $25/acre. It remains $25/acre for shallower-water tracts.

MMS said that 60 blocks in 400-800 m of water, 105 in 400-800 m, and 2,790 in more than 800 m may qualify for royalty suspensions if marginally economic fields are found.