The annual Central Gulf of Mexico lease sale, considered aleading barometer of the energy industry’s exploration andproduction efforts, drew a healthy response Wednesday in NewOrleans, with the Minerals Management Service receiving bidstotaling $505,468,501. The 547 blocks, located off the coasts ofLouisiana, Mississippi and Alabama, drew bids from 90 companies – a60% higher response than last year.

MMS’ Sale 178 attracted 780 bids on 547 tracts, and the total ofall bids was $663,406,963. Last year, MMS received 469 bids on 344blocks with total bidding approximately $300 million. While thisyear’s sale amount was high, the record was set in 1997 when morebids were available — 1,790 bids were put up on 1,032 tracts for$824.1 million.

More than half of the bidding, about 64%, was concentrated inthe shallow water, with 338 tracts in less than 200 meters of waterreceiving 502 bids. Each block is approximately nine square miles.

“We are very pleased with this sale,” said acting MMS DirectorTom Kitsos. “Strong bidding by the independent oil and gascompanies was a major part of the sale, and we are particularlypleased with the high interest shown in the shallow water areawhere deep gas deposits may be present.” He said that there were 11companies that were first-time bidders in the lease sale.

Exxon Mobil Corp. had four bids making the top 10 list, with thesingle highest by its Exxon Asset Management Co, which bid $26.115million for Mississippi Canyon Block 912, with a water depth ofmore than 1,600 feet. Kerr-McGee Oil & Gas Corp. was secondhighest, bidding $18.378 million for Green Canyon Block 680, whichis more than 1,600 feet deep. Exxon Asset was also third highestwith a bid of $18.315 million for Mississippi Canyon Block 956,with a water depth of more than 1,600 feet.

Other companies making the top 10 list were Anadarko PetroleumCorp., $17.134 million, Green Canyon Block 143; Exxon Asset,$16.315 million, Mississippi Canyon Block 368; PB Exploration &Production Inc., $13.352 million, Mississippi Canyon Block 725;Murphy Exploration & Production, $11.230 million Green CanyonBlock 735; Murphy Exploration and partners Dominion Exploration& Production Co. and Spinnaker Exploration Co. LLC, $10.173million, Green Canyon Block 426; Kerr-McGee, $9.215 million, GreenCanyon Block 379; and Exxon Asset, $8.015 million, Green CanyonBlock 860.

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