Spinnaker Exploration provides summary of OCS Sale activities
Spinnaker Exploration provided a summary of its activities related to OCS Sale #178, covering tracts offered in the
Central Gulf of Mexico (Offshore Louisiana) by the Minerals Management Service (MMS). Preliminary results were
announced by the MMS.
Spinnaker participated in a total of 52 bid submissions, third most by industry for Sale #178. Twenty-two of these
blocks are located in water depths of less than 200 meters (shelf) and thirty blocks in water depths greater than 200
meters (deep water). Generally, block size on the shelf is 5,000 acres and 5,760 acres in deep water.
Spinnaker was successful in participating in the Apparent High Bid (AHB) submission on a total of 32 blocks; 11 on
the shelf and 21 in the deep water. Spinnaker's net exposure to the AHBs is approximately $ 14.4 mm. Spinnaker's AHBs
were submitted on 17 blocks where it would act as operator (11 blocks on the shelf and 6 blocks in deep water).
Spinnaker's working interest (WI) averages 91 % on those blocks. Spinnaker participated in 15 AHBs as a non-operator;
where its WI averages 33 %. All non-operated AHBs were submitted in deep water. Additionally, Spinnaker has a right
to participate in one additional AHB in deep water, should that block be awarded. If awarded, Spinnaker's WI in that
block would be 50 % and would represent net cost of approximately $ 0.1 mm.
Spinnaker and its partners Murphy Oil and Dominion submitted a total of 10 AHBs in the immediate vicinity of its
recently announced "Front Runner" discovery, located in Green Canyon blocks #338 and #339. Spinnaker holds a 25 % WI
in Front Runner, as well as the adjacent AHBs.
If awarded, the AHBs represent approximately 188,000 gross acres and 99,000 acres net to Spinnaker and would increase
the company's current Gulf of Mexico gross and net leasehold positions by 26 % and 29 %, respectively.
Spinnaker Exploration is an independent energy company engaged in the exploration, development and production of natural gas and oil in the US Gulf of Mexico.
