Contango Affiliates Apparent High Bidders on 16 Leases


Central Gulf of Mexico - Lease Sale 198
(Click to Enlarge)
Contango Oil & Gas reports that two affiliated companies, Republic Exploration (REX) and Contango Offshore Exploration (COE), bid on 22 lease blocks offered at the Central Gulf of Mexico Lease Sale #198, held earlier this week in New Orleans. REX and COE were the apparent high bidders on 12 and 4 lease blocks, respectively.

The sale covered areas in the central part of the Outer Continental Shelf, offshore from the Louisiana coastline. In exchange for Contango Operators (COI) and a third party paying 100 percent of the lease bid and rentals, REX will assign a portion of its record title interest in the lease blocks it is awarded to COI and a third party. REX had the AHB on the following lease blocks:

  
                       REX's       COI's       100%        Paid
                       Ownership   Ownership   Bid Amount  by COI
---------------------- ----------- ----------- ----------- ----------
Vermilion 190          50%         37.5%       $157,000    $117,750
Vermilion 193          50%         37.5%       $157,000    $117,750
Vermilion 194          50%         37.5%       $157,000    $117,750
South Marsh Island 9   50%         37.5%       $257,000     192,750
South Marsh Island 57  50%         37.5%       $157,000    $117,750
South Marsh Island 59  50%         37.5%       $157,000    $117,750
South Marsh Island,
 South 75              50%         37.5%       $157,000    $117,750
South Marsh Island,
 North 282             50%         37.5%       $100,270     $75,203
South Marsh Island,
 North 287             50%         37.5%       $257,000    $192,750
Ship Shoal 14          50%         37.5%       $101,670     $76,253
Ship Shoal 25          50%         37.5%        $99,670     $74,753
West Delta 77          50%         25.0%     $1,557,000    $778,500
                                               ----------- ----------
                                             $3,314,610  $2,096,708
                                               =========== ===========

In exchange for a third party paying 50 percent of the lease bid and rentals on the Ship Shoal 263 and Grand Isle 70 blocks, COE will assign 25 percent of its record title interest in the lease blocks it is awarded to the third party. COE had the AHB on the following lease blocks:

                                                                                     COE's          100%         Paid
                            Ownership %    Bid Amount    by COE
-------------------------   ------------   ------------ -------------
Ship Shoal, South 263       75%            $857,000       $428,500
Grand Isle 70               75%            $527,000       $263,500
Viosca Knoll 119            50%            $153,700        $76,850
Viosca Knoll 383            100%           $257,000       $257,000
                                         -------------- -------------
                                         $1,794,700     $1,025,850
                                         ============== ==============

Contango owns approximately 43 percent and 76 percent of REX and COE, respectively, and 100 percent of COI. If these blocks are awarded, Contango will own interests, both directly and indirectly vis-a-vis its affiliates, in 68 federal lease blocks in the Gulf of Mexico.

"We are pleased with our growing inventory of offshore prospects and leads," said Kenneth R. Peak, Contango's chairman and CEO. "We recently logged an offshore discovery on our Grand Isle 72 block. Our farm-out prospect, Main Pass 221, is currently being drilled, and we expect to begin drilling our Eugene Island 10 prospect in April 2006. We expect to begin drilling our High Island A-279 and West Delta 43 prospects before calendar year-end.

Related Companies
 Company: Minerals Management Service (MMS)more info
 - Obama Names New Head of MMS (Jun 15)
 - Abbey Implements New Drilling Requirements (Jun 7)
 - MMS Chief Resigns (May 27)
 Company: Contango Oil & Gasmore info
 - Contango, Crimson Exploration Pen Merger Agreement (Apr 30)
 - Contango Mourns Loss of Founder (Apr 22)
 - Contango Spotlights Year-End Results (Aug 29)
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit www.riglogix.com.
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
United States Houston: Sr Advising Engineer - Tech Development
Expertise: Business Development|IT - Software Development
Location: Houston, TX
 
Business Development Manager
Expertise: Business Development|Construction Manager|Marketing
Location: Salt Lake City, UT
 
Project Manager II
Expertise: Estimating|Project Controls|Project Management
Location: Hayward, CA
 
search for more jobs

Brent Crude Oil : $50.97/BBL 1.53%
Light Crude Oil : $48.75/BBL 1.79%
Natural Gas : $2.92/MMBtu 0.68%
Updated in last 24 hours