The central Gulf of Mexico Lease Sale 205 secured the largest total revenue for lease sales in close to a quarter-century-almost $3 billion in high bids. That's more interest shown than in the Central Gulf sales this decade combined-and the most revenue outlay since 1983's watershed mark of $3.4 billion-says Colin Gerry, research analyst for Raymond James & Associates in Houston. About 40% of the bid tracts are in ultradeep water-more than 5,000 feet-and accounted for more than half the total revenues plunked down. The big spenders were Royal Dutch Shell and Chevron, which on a combined basis won 113 tracts costing more than $800 million. Comparatively, the average value paid for tracts in the jackup-dominated, shallow-water Gulf of Mexico remained relatively flat with the average for the past three years, "which makes sense given the uncertainty in near-term natural gas prices," says Gerry. For more on this, see the November issue of Oil and Gas Investor. For a subscription, call 713-260-6441.

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