Western GoM Sale 192 Nets $169.9 Million in High Bids

Gulf of Mexico Sale 192
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The Minerals Management Service has accepted the high bids on 346 of 351 tracts offered during offshore Oil and Gas Lease Sale 192, held August 18, 2004. Prior to accepting the high bids, which totaled $169,928,999, MMS completed an extensive two-phase bid evaluation process to ensure that the Federal Government receives a fair monetary return for the public mineral resources it makes available.

Of the 351 tracts receiving bids during the sale, MMS rejected 4 high bids totaling $1,257,085 as insufficient for fair market value. In addition, one high bid at $201,201 was deemed unacceptable by MMS because it was below the required minimum bid amount stated in the Final Notice of Sale. MMS accepted the high bids on 346 tracts for a net amount of $169,928,999.

The monies collected are distributed to the general fund of the U.S. Treasury, shared with the affected States, and set aside for special uses that benefit all 50 states.

The highest bid accepted on a tract was $6,775,400 by The Houston Exploration Company for High Island, East Addition, South Extension A-270. This tract is located in water depths less than 200 meters and received four bids. The second and third highest bids accepted were $4,877,331 by Remington Oil and Gas Corporation on Garden Banks 506 and $4,244,200 by Kerr-McGee Oil & Gas Corporation on East Breaks 424, both of which were in the 800- to 1,599-meter water depth range.

This sale indicates the continued strong interest of major and independent oil and gas companies in the Gulf. The results of the sale also indicate a continuing interest in shallow-water areas.

The top five companies participating in the highest number of accepted high bids for Sale 192 are the following:

				Number of		Sum of Accepted
Company				Accepted High Bids	High Bids
Amerada Hess Corporation		56		$12,911,509
BP Exploration & Production		47		$27,890,067
Petrobras America Inc.			36		$10,518,174
Devon Energy Prod. Company L.P.		26		$11,519,457
Kerr-McGee Oil & Gas Corp.		24		$14,089,305

The top five companies with the highest total bonus accepted are the following:

				Number of		Sum of Accepted
Company				Accepted High Bids	High Bids
BP Exploration & Production		47		$27,890,067
Kerr-McGee Oil & Gas Corp.		24		$14,089,305
Amerada Hess Corporation		56		$12,911,509
Devon Energy Prod. Company L.P.		26		$11,519,457
Petrobras America Inc.			36		$10,518,174
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