Energy Partners, Ltd was the high bidder on eight leases at the Central Gulf of Mexico Lease Sale 206 held yesterday in New Orleans, LA. The eight high bid lease blocks cover a total of 37,448 acres on a gross basis, and include seven blocks on the Gulf of Mexico Shelf and one in deepwater located in the Missisippi Canyon area. The seven high bid blocks on the Shelf are all located in EPL's core focus area and include three South Timbalier, two Grand Isle and two West Delta blocks. EPL's share of the high bids totals $4.7 million.
The Company announced that the moderate risk, moderate potential Gulf of Mexico Shelf exploratory well, South Timbalier 46 #5 (#A-3) well, was drilled to its objective section to the northeast of the initial discovery area and encountered sands, but did not see commercial hydrocarbons. The Company will recognize dry hole expense currently estimated at $18 million in the first quarter of 2008 in connection with this 100% working interest well.
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