Castex Offshore regains Gulf of Mexico block

  • Business & Finance

Castex Offshore, a mid-sized, U.S. based oil company, operating the Hummer project in the U.S. Gulf of Mexico, has been re-awarded the Main Pass Block 274 lease offshore Louisiana.

According to Petsec Energy, Castex’s partner in the Hummer development, the latest lease award falls within an Area of Mutual Interest (AMI) for the Hummer Project participants, and as a result, Petsec has the right to participate for its 12.5% working interest (“W.I.”) in the lease.

Main Pass Block 274 was previously leased by Petsec in March 2010 as part of the Hummer Exploration Prospect, which was identified on 3D seismic as extending across portions of Main Pass Blocks 270, 273 and 274. The Main Pass Block 270 #3 Hummer discovery well (Petsec 12.5% W.I.) was drilled in late 2015 and is currently under development with the construction of a production jacket.

The company said that it has maintained leases on Main Pass Blocks 270 and 273 along with other Hummer participants as a result of the drilling; however the five year lease term on Block 274 expired in mid-year 2015 prior to drilling and logging of the discovery well.

Following the expiration, Main Pass Block 274 was subsequently re-offered by the Bureau of Ocean Energy Management (BOEM) in the Central Gulf of Mexico Lease Sale 241 held on March 23, 2016. Castex was the high bidder with a gross bid of US$675,576. Petsec’s net share is US$84,447.

There was one other competitive bid on the blick, Petsec said, however after review by the BOEM, Castex’s bid was accepted on May 5th, 2016.



Related news

List of related news articles