The U.S. Minerals Management Service is proceeding with plans for a Central Gulf of Mexico lease sale this summer.
MMS Director Scott Sewell said, "There have been significant discoveries in the central gulf recently, so we're optimistic about this sale."
Sale 139 will offer 5,194 blocks totaling 28 million acres in 4 to more than 3,425 m of water ranging from 3 to 220 miles off Texas, Louisiana, Mississippi, and Alabama.
It estimated the sale area's recoverable resources total 160 million bbl of oil and 1.58 tcf of gas.
MMS will decide whether to proceed with the sale after reviewing comments from coastal state governors regarding the sale's size, timing, and location.
About 1,130 blocks in less than 400 m of water will be offered for 5 year terms and a one-eighth royalty. Also carrying a one-eighth royalty will be 204 blocks in 400-900 m of water offered for 8 year terms and 3,860 blocks in 900-3,060 m of water for 10 year terms.
The leases carry standard stipulations.
Operators leased 456 tracts at the last central gulf sale in March 1991 (OGJ, Apr. 8, 1991, p. 28). Another sale in the area, No. 142, is planned for early 1993.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
