Medco Energi US LLC, MEUS has announced that the United States Minerals Management Service (MMS) has accepted its bids for all three of the blocks it bid for at the August 16th, 2006 Western Gulf of Mexico OCS Oil and Gas Lease Sale 200 and has awarded leases accordingly.
The new leases cover Brazos Area Blocks 435, 492, and 514, located in water depths of 65 to 80 feet in the Gulf of Mexico. Each of these leases covers 5,760 acres of federal waters. Each lease carries a five-year primary term in which to establish commerciality, and a perpetual term for the life of production once production is established. MEUS owns a 100% working interest in each of the blocks, which are all subject to a 16.67% royalty in favour of the United States government. Medco's cost for the 17,280 net acres covered by these blocks is $796,522.
Dave Gibbs, the MEUS president stated, "We are pleased to add these leases to our active inventory. The company has an aggressive drilling budget for 2007 and these leases will figure prominently in our program. These leases significantly increase our acreage position in the Gulf of Mexico and demonstrate our commitment to the US energy business."
Medco Energi US LLC is a wholly owned subsidiary of PT MedcoEnergi Internasional TBK and specializes in mature field re-development activities in the Gulf of Mexico and coastal areas of Texas and Louisiana.