Kerr-McGee high bidder on 16 deepwater leases

Offshore staff

Kerr-McGee Oil & Gas Corp. and partners were high bidders on 16 deepwater leases in Western Gulf of Mexico lease sale 196. The company's net total for all high bids is $4.5 million.

The bids were subject to approval by the U.S. Interior Department's Minerals Management Service. Kerr-McGee will be designated operator of all of the high-bid leases, with an average working interest of 73%.

With the new leases, Kerr-McGee will hold interests in 571 leases in the deepwater Gulf of Mexico and will operate more than 76% of these leases with an average working interest of 57%. Award of the 16 high-bid leases would increase the company's total undeveloped lease holdings in the deepwater gulf by 92,000 gross acres to nearly 3 million.

08/18/05