HOUSTON -- The U.S. Gulf of Mexico region wide Lease Sale 249 was held today, Aug. 16, 2017. It attracted 99 bids from 27 participating companies, with high bids totaling $121 million. Activity is down by roughly half from Central Lease Sale 247, with operators submitting a total bid value of $137 million for 90 blocks, a decrease of 57% and 45%, respectively. The decrease in activity comes after the first increase in five years seen during the last sale in March.

Commenting on the results of this latest lease round, William Turner, senior research analyst at Wood Mackenzie, said:  "Deepwater (400-m depth) blocks won the day today, with 76 blocks receiving 98% of high bid value at $118 million. The deepwater industry is emphasizing short-cycle, low-risk prospects above high-impact, wildcat drilling. Today we saw operators continue to focus on areas near existing infrastructure with a majority of bids close to existing hubs or appraised developments." 

The highest bid came from Total E&P U.S., for Garden Banks 1003 at $12.1 million. GB 1003 is adjacent to North Platte, Cobalt's appraised discovery, which is being actively marketed.

"However, bids from Chevron, Shell & Total near pre-FID discoveries, Guadalupe and North Platte, were a vote of confidence in higher-risk, standalone developments with potential for higher rewards." Turner added.