CNG Producing Company Secures High Bids in Gulf of Mexico Lease Sale

Strategic Insights -

CNG Producing Company has emerged as the apparent high bidder on five tracts at the Western Gulf of Mexico Lease Sale 174 held in New Orleans. The company's share of the bids totals $5.7 million, with a 50 percent interest in high bids for three tracts in deep water and a 100 percent interest in two tracts in shallow water on the Continental Shelf. These high bids will be reviewed by the Minerals Management Services before leases are awarded.

Key Takeaways:

  • CNG Producing Company secured high bids on five tracts at the Western Gulf of Mexico Lease Sale 174, with a total value of $5.7 million.
  • The company has a 50 percent interest in high bids for three tracts located in deep water, including Keathley Canyon 7, Keathley Canyon 682, and Garden Banks 213, with water depths ranging from 1,500 to 3,900 feet.
  • CNG Producing has a 100 percent interest in high bids for two tracts in shallow water on the Continental Shelf, namely High Island A-2 and High Island A-3.
  • The high bids will be reviewed by the Minerals Management Services before leases are awarded.
  • CNG Producing Company is a subsidiary of Consolidated Natural Gas Company (NYSE: CNG), one of the nation's largest producers, transporters, distributors, and retail marketers of natural gas.

Statistics:

  • Total value of CNG Producing's bids: $5.7 million
  • Number of tracts secured by CNG Producing: 5
  • Water depth range for deep-water tracts: 1,500-3,900 feet
  • Number of deep-water tracts secured by CNG Producing: 3
  • Number of shallow-water tracts secured by CNG Producing: 2

Sources:

  • Source: PRNewswire, Aug. 26
  • Source: CNG Producing Company
  • Source: Consolidated Natural Gas Company (NYSE: CNG)