MMS to issue final notice of GoM Lease Sale 213

On Feb. 12, the US Department of the Interior’s Minerals Management Service (MMS) will issue the Final Notice of Sale (FNOS) for Federal Lease Sale 213.

Offshore staff

NEW ORLEANS -- On Feb. 12, the US Department of the Interior’s Minerals Management Service (MMS) will issue the Final Notice of Sale (FNOS) for Federal Lease Sale 213. The sale encompasses 6,958 unleased blocks covering more than 36.9 million acres offshore Louisiana, Mississippi, and Alabama. It also includes 4.1 million unleased acres in the 181 South Area.

The FNOS gives the lease terms and economic conditions for the sale including changes in initial lease periods.

Water depths of 1,312 ft (400 m) to less than 2,625 ft (800 m): The previous eight-year lease period, which included a requirement that a well be drilled in the first five years, is replaced with a five-year initial period for a lease, which may be extended by three years if a well is begun during the initial period.

Water depths of 2,625 ft (800 m) to less than 5,249 ft (1,600 m): A seven-year lease replaces the previous 10-year lease, with an extension of three years if a well is begun during the initial period. A 10-year initial lease period will be retained in water depths of at least 5,249 ft (1,600 m).

“MMS recognizes that advances in technology have decreased the time necessary for exploration and development in some water depths, while frontier conditions still exist in the deepest waters of the Gulf,” says MMS Director Liz Birnbaum. “The reduction of some initial lease periods with possible extensions is a way to expedite development."

MMS estimates that the sale could result in production of approximately 0.8 to 1.3 Bbbl of oil and 3.3 to 5.4 tcf of natural gas. The acreage is 3 to 230 mi (5 to 370 km) offshore in water depths of about 10 ft (4 m) to more than 11,200 ft (3,400 m).

All terms and conditions for Central Sale 213 are detailed in the FNOS information package on the MMS Website at: http://www.gomr.mms.gov/homepg/lsesale/213/cgom213.html.

Lease Sale 213 will be held March 17 in New Orleans.

02/11/2010

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