Spinnaker Apparent High Bidder on 20 GoM Blocks; 19 in Deep Water

Spinnaker Exploration provides a summary of its activities related to OCS Sales #194 and #197, held earlier today, covering tracts offered in the Central and Eastern Gulf of Mexico by the Minerals Management Service (MMS). Preliminary results were announced by the MMS today in New Orleans. Apparent High Bids (AHB) give the bidding party priority in award of offered tracts, however under certain circumstances, the MMS retains the right to reject all bids for a given tract. The MMS review process can take up to 90 days.

Spinnaker participated in AHBs on a total of 20 blocks; 19 in the deep water and 1 on the shelf. Spinnaker's net exposure to the AHBs is approximately $17.8 million.

Spinnaker's working interest averages 46% in the AHBs and the Company will serve as operator on five of the 20 blocks represented by the AHBs.

The AHBs represent approximately 112,000 gross acres and 52,000 acres net to Spinnaker. This would bring Spinnaker's holdings in the Gulf of Mexico to approximately 1,689,000 gross acres and 952,247 net acres, respectively.