Spinnaker Scores 15 Tracts in Gulf of Mexico Lease Sale

Spinnaker placed or participated in a total of nineteen bid submissions for the sale. Fourteen of these blocks are located in water depths of less than 200 meters (shelf) and five blocks are located in water depths of greater than 200 meters (deep water). Generally, block sizes in the Federal Waters Offshore Louisiana are 5,000 acres on the shelf and 5,760 acres in deep water.

Spinnaker submitted or participated in the AHB on a total of 15 blocks; 12 on the shelf and 3 in deep water. Spinnaker's net exposure to the AHBs is approximately $12.0 million.

Spinnaker's working interest (WI) averages 91% in the AHBs and, if all blocks are awarded, would serve as operator on 13.

The AHBs represent approximately 77,000 gross acres and approximately 69,000 acres net to Spinnaker's interest. Before the lease sale, Spinnaker's gross and net holdings in the Gulf of Mexico totaled 1,344,000 acres and 747,000 acres, respectively. Spinnaker's AHBs primarily related to deep prospects on the shelf and to existing focus areas in the deep water.