Spinnaker High Bidder on 32 Block in GOM Lease Sale 180
Spinnaker Exploration Company provided a summary of its activities related to OCS Sale #180, covering tracts offered in the Western Gulf of Mexico (Offshore Texas) by the Minerals Management Service (MMS). Preliminary results were announced by the MMS today in New Orleans.
Spinnaker participated in a total of 38 bid submissions, second most by industry for OCS Sale #180. Twenty-seven of these blocks are located in water depths of less than 200 meters (shelf) and eleven blocks in water depths of greater than 200 meters (deep water). Generally, block size in Texas is 5,760 acres for both shelf and deep water tracts.
Spinnaker was successful in submission or participation in the Apparent High Bid (AHB) on a total of 32 blocks; 26 on the shelf and 6 in deep water. Spinnaker's net exposure to the AHBs is approximately $17.4 million. Spinnaker's AHBs were submitted on 31 blocks where it would act as operator (26 blocks on the shelf and 5 blocks in deep water). Spinnaker's working interest (WI) averages 98% on those blocks. Spinnaker participated in one AHB as a non-operator; where its WI is 50%. If awarded, the AHBs represent approximately 179,895 gross acres and 166,495 acres net to Spinnaker. This would increase the Company's current Gulf of Mexico gross and net inventory by 20% and 38%, respectively.
All of the Company's bids on the shelf relate to core areas of exploration in the High Island, Galveston Island and North Padre Island Areas.