Page 19: of Marine Technology Magazine (April 2006)

Nine deepwater oil and gas discoveries were announced in the Gulf of Mexico during 2005. "The deepwater dis- coveries to date represent a strong continuing success story in the Gulf of Mexico," stated Chris Oynes,

Minerals Management Service (MMS) Regional Director for the Gulf of Mexico. "Discoveries like BP's Stones rep- resent a continuing favorable development in the new

Paleogene play in the Walker Ridge area." Compared with the seven drilling rigs in the same period one year ago, there are nine rigs drilling in 5,000 feet of water or greater - the ultra deepwater zone. In addition, a new drilling record in the Gulf of Mexico - 34,189 feet - was reached at the Knotty Head prospect. The announced deepwater discoveries in 2005 demonstrate that active exploration in the deepwater Gulf of Mexico will continue to help

America meet its energy needs. (Source: U.S. MMS,

Ocean Science, January/February 2006)

GOM Lease Sales Up 38%

Near record oil and gas prices led to robust bidding in an offshore federal lease sale. The Central Gulf of Mexico

Lease Sale 198, garnered $588,309,791 in high bids from 82 companies for oil and natural gas leases in the Federal waters of the Gulf of Mexico. The total of all bids was $978,310,887, a 38 percent increase over last year's

Central Gulf Sale. The sale, held March 15, 2006, in New

Orleans, was conducted by the Minerals Management

Service. In Sale 198 the agency received 707 bids on 405 tracts. In this sale, 4,040 blocks comprising approximate- ly 21.3 million acres offshore Alabama, Louisiana, and

Mississippi were offered. While interest in deep water production continues, the large number of tracts receiv- ing bids in shallow water is of particular note, indicating industry interest in deep gas in shallow waters, as well as deep water oil and gas production.Amerada Hess

Corporation submitted the highest bid on Green Canyon Block 287 for $42,789,994. Newfield Exploration

Company and Anadarko Petroleum Corporation submitted the second highest bid on Green Canyon Block 551 for $33,989,760. Each of the high bids on a block will go through an evaluation process to ensure the public receives fair market value before a lease is awarded. www.seadiscovery.com Marine Technology Reporter 19

Top Five Companies by Number of High Bids

Company Total High Bids Sum of High Bids

BP Exploration & Production Inc. 73 $22,276,118

BHP Billiton Petroleum Inc. 26 $7,661,284

Hunt Oil Company 23 $10,943,280

Dominion Exploration & Production Inc. 16 $41,417,099

Hydro Gulf of Mexico, L.L.C. 14 $20,117, 740

Top Five Companies by Amount of High Bids

Company Total High Bids Sum of High Bids

Amerada Hess Corporation 13 $62,593,922

Woodside Energy (USA) Inc. 12 $47,162,990

Dominion Exploration & Production Inc. 16 $41,417,099

Newfield Exploration Company 6 $32, 208,909

Samson Offshore Company 10 $27,109,326

Gulf of Mexico Region Deepwater Discoveries

The Holstein oil and gas development is located approximately 150 miles south of

New Orleans. The field is being devel- oped using a

Production Drilling and

Quarters (PDQ) truss spar, permanently moored in 4,350 feet of water. (Photo courtesy of BP

Exploration & Production) 2005 Announced Deepwater Discoveries, Gulf of Mexico

Prospect Operator Area/Block Number Water Depth (ft)

Stones BP Walker Ridge 508 9,576

Jubilee Extension Anadarko Lloyd Ridge 309 8,774

Mondo NW Extension Anadarko Lloyd Ridge 1 8,340

Q Spinnaker Mississippi Canyon 961 7,925

Big Foot Chevron Walker Ridge 29 5,286

Genghis Khan Anadarko Green Canyon 652 4,300

Wrigley Newfield Mississippi Canyon 506 3,700

Knotty Head Chevron/Unocal Green Canyon 512 3,557

Clipper Pioneer Green Canyon 299 3,452

Anduin Nexen Mississippi Canyon 755 2,400

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