HOUSTON – Apache Corp. (NYSE, Nasdaq: APA) reports that its subsidiaries were the apparent high bidders on nine shallow-water blocks and five deepwater blocks in the recent Central Planning Area Lease Sale 227 held by the Bureau of Ocean Energy Management.
On the continental shelf, Apache was the sole bidder on all nine blocks where it submitted bids. The company partnered on seven blocks in the Main Pass area, forming a new joint venture with Apache as the operator and holding a 75% working interest. The joint venture is currently shooting seismic over a 633,000-acre area using new wide-azimuth technology to collect data and images under and around salt dome structures.
The company holds a 100% working interest in its two other shelf leases acquired in the sale.
In deepwater, Apache was high bidder on five of nine bids, with a 50% working interest in each lease. Leases were acquired in the DeSoto Canyon, Green Canyon and Mississippi Canyon lease areas.
The company's net exposure for its winning bids was $2.2 million for the shelf and $24.6 million for deepwater blocks.
"With new acreage, new investments and new ideas, we expect that the Gulf of Mexico will continue to generate strong cash flows and excellent returns," said Jon Jeppesen, executive vice president.