From Frost:> * The Mineral Management Service announced the results of Central Gulf
> Lease Sale #178 yesterday, and higher commodity prices and focus on
> natural gas exploration drove an increase in the level of activity.
> Ninety companies made 780 bids on 547 of the available tracts, compared to
> 63 companies submitting 469 bids on 344 of the available tracts last year.
> While a strong showing, this is still half of the record 1790 bids on 1032
> blocks submitted by 105 companies in 1997. The top ten single highest
> bids in this year's sale were all located in Mississippi Canyon or Green
> Canyon. Of the top ten bids, Exxon (NYSE: XOM; Not Rated; Price: $78.65)
> had four, Kerr McGee (NYSE: KMG; Not Rated; Price: $64.63) had two, Murphy
> Oil (NYSE: MUR; BUY; Price: $64.45; 12-Month Target: $80) had two (along
> with partners), BP (NYSE: BP; Not Rated; Price: $49.16) had one, and
> Anadarko (NYSE: APC; Not Rated; Price: $61.54) had one. While the quality
> of the acreage remains to be seen, Magnum Hunter (AMEX: MHR; STRONG BUY;
> Price: $11.56; 12-Month Target: $17) and Remington Oil (NASDAQ: ROIL; Not
> Rated; Price: $13.53) each appear to have gotten the best bargains in the
> lease sale. Magnum Hunter acquired 45 blocks for just $5.5 million, and
> Remington picked up 33 tracts for $6.5 million. Some highlights of the
> sale include:
> * Nearly a 50% jump in the number of companies participating.
> * High bids represent a 70% increase in spending over last year.
> * Murphy Oil's Front Runner discovery drove up interest in the Green
> Canyon area.
> * Exxon continued locking up acreage in Mississippi Canyon deepwater
> near Crazy Horse, beating out rival BP on several blocks.
> * Surprising bidding activity for Shelf acreage, with 353 Shelf blocks
> receiving bids versus 194 deepwater blocks.
> * High bids totaled $505.5 million, up from $300 million spent last
> year.
> * On a per acre basis, the bids continue to trend up, reaching $182
> per acre this year. |
