Western Gulf of Mexico Sale 248 Reflects Current Oil and Gas Prices

BOEM Completes Tract Evaluation and Awards All Leases

12-07-2016 New Orleans, LA

The Bureau of Ocean Energy Management (BOEM) completed its required evaluation to ensure the public receives fair market value for tracts leased in Western Gulf of Mexico Oil and Gas Lease Sale 248, held on August 24, 2016.

After extensive geological, geophysical, engineering, and economic analysis, BOEM has awarded all 24 leases on tracts covering 138,240 acres to high bidders who participated in the sale. The accepted high bids are valued at $18,067,020. BOEM accepted the 24 bids after determining that the value of each bid was sufficient to provide the public with fair market value for each tract. The highest bid accepted was $1,124,000, submitted by Exxon Mobil Corporation for East Breaks, Block 590. BHP Billiton Petroleum (Deepwater) submitted 12 of the 24 bids.

During the sale, three companies submitted 24 single bids totaling $18,067,020. No bids were received in water depths less than 800 meters or greater than 1,600 meters. By comparison, during last year’s Western Sale 246, 33 tracts received single bids totaling $22,675,212. Five of the bids were in water depths less than 800 meters and 21 were in water depths greater than 1,600 meters.

For more information on Sale 248 go to https://www.boem.gov/Sale-248/.