Entek Confirmed High Bidder on 5 Offshore Blocks in Western GOM
Entek has been confirmed as high bidder on five (5) blocks in the recent MMS Western Lease Sale 210 which closed on August 19, 2009. Award of the blocks is subject to further review by the Minerals Management Service (MMS), however as all bids are in excess of the minimum bid level, it is anticipated the blocks will be officially awarded to Entek within 3 months by the MMS.
In its Quarterly Activities Report for the quarter ending June 30, 2009, released on July 31, 2009, Entek announced (in part): "A window of opportunity exists as a result of the combination of the global economic slowdown and continuing low commodity prices, particularly natural gas, which has resulted in depressed activity levels in oil and gas exploration and development. With cash flow and cash reserves, Entek
is well positioned to capitalize on this window of opportunity. To exploit the less competitive hence greater opportunity bid environment in the upcoming Minerals Management Service (MMS) Federal offshore oil and gas lease sale for the Gulf of Mexico on August, 19, 2009. Sale 210 encompasses about 3,400 unleased blocks covering approximately 18 million acres in the Western Gulf of Mexico Planning Area off‐shore Texas. MMS estimates the proposed lease sale could result in the production of 242 to 423 million barrels of oil and 1.64 to 2.64 trillion cubic feet of natural gas. Entek is currently reviewing prospects and will submit a bid or bids on blocks it considers to represent low risk exploration and or exploitation potential."
CEO Russell Brimage said, "Entek's current position of being debt free, with cash reserves and having cash flow enabled the company to implement a low bid strategy to secure additional reserves and low risk prospects. The same strong position allowed us recently to complete a farmin into New Frontier Energy, Inc. assets in Colorado which doubled Entek’s 2P reserves. Once officially awarded by the MMS, we believe these blocks will add to existing 2P reserves whilst providing low risk prospects for exploration.
"These blocks significantly increase Entek's Gulf of Mexico portfolio. Entek is emerging as an active and successful explorer and producer in this region."
Entek's Main Pass Block 252 (MP‐252) redevelopment project in the Gulf of Mexico is also on track. The company is in the process of permitting the well locations and starting the relevant surface surveys to enable drilling to commence after the end of the current hurricane season which finishes at the end of November, 2009.
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