Central Gulf of Mexico Lease Sale 227 has resulted in 307 leases being awarded in total, with ultra-deepwater leases dominating the activity.

According to the US Bureau of Ocean Energy Management (BOEM), the awarded leases cover more than 1.6 MM acres. The sale was held in March this year, and offered 7,299 blocks covering about 38.6 MM acres. The value of the accepted high bids was put at about US $1.2 billion.

The highest bid accepted was for nearly $82 million, submitted by Samson Offshore and Statoil Gulf of Mexico for Walker Ridge Block 271. The tract features water depths greater than 1,600 m (5,249 ft) and received two bids. Ultra-deepwater blocks of more than 1,600 m water depth were the most heavily bid segment of the licensing round, with131 blocks receiving winning bids, with a further 78 winning bids by companies for blocks in water depths ranging from 800-1,600 m.

The terms of the sale continued a range of terms, including an increased minimum bid for deepwater tracts, escalating rental rates, and tiered durational terms with relatively short base periods followed by additional time under the same lease if the operator drills a well during the initial period.

BOEM increased its minimum bid requirement in deepwater to $100 per acre, up from $37.50 in Central GoM sales prior to 2012.

In the sale 52 companies submitted 407 bids totalling about $1.6 billion on 320 tracts.

BOEM rejected 13 high bids, totaling $15.6 million after determining that the value of those bids was insufficient to provide the public with fair market value for the tracts. The tracts will be offered as part of the next Central GoM sale, currently scheduled for March 2014.

More information on sale 227 is available at: www.boem.gov/sale-227/.