Gulf lease sale gets Dec. 10 nod

The U.S. Minerals Management Service has set Dec. 10 as the date for Eastern Gulf of Mexico Lease Sale 189. It will be only the second lease sale for the remote area in the past 15 years.

The sale area will feature 138 blocks encompassing 794,880 acres, and is located from 100 to 196 miles offshore in water depths ranging from about 1,600 to more than 3,425 meters. Since the last eastern gulf sale in late 2001, MMS says it has received 20 exploration plans.

“It (sale area) remains one of great interest because of the potential oil and gas in the area,” said Chris Oynes, MMS’ Gulf regional director.

MMS said acreage to be offered in the sale contains an estimated 65 to 85 million barrels of oil reserves and 265 to 340 billion cubic feet of natural gas reserves. Based on the “net economic value” of the resource, the agency believes the sale could draw between $100 million and $500 million in bonuses.

Sale 189 includes a provision for royalty suspension of 12 million barrels of oil equivalent for a lease in water depths of 1,600 meters and deeper, subject to price thresholds. Lessees also can apply for additional royalty relief.

The sale is scheduled to begin at 9 a.m. in the Grand Ballroom of the Royal Sonesta Hotel, 300 Bourbon Street, New Orleans, La.