MMS rejects five bids offered in Aug. 18 U.S. Gulf Sale 192

Ray Tyson

The U.S. Minerals Management Service said it rejected four bids totaling $1,257,085 offered in the Aug. 18 Western Gulf of Mexico Lease Sale 192 because they were below fair market value. Additionally, MMS rejected one bid of $201,201 because it was below the required minimum bid.

The agency, following a two-phase bid evaluation process, accepted total high bids on 346 tracts amounting to $169,928,999.

The highest bid accepted on a tract was $6,775,400 by The Houston Exploration Co. for High Island, East Addition, South Extension A-270, which is in water depths less than 200 meters and received four bids.

The second and third highest bids accepted were $4,877,331 by Remington Oil and Gas on Garden Banks 506 and $4,244,200 by Kerr-McGee on East Breaks 424. Both blocks are at water depths ranging from 800 meters to 1,599 meters.

“This sale indicates the continued strong interest of major and independent oil and gas companies in the Gulf,” MMS said. “The results of the sale also indicate a continuing interest in shallow-water areas.”