BOEM’s Decision Information Matrix for Sale BBG2 is attached. As previously noted, 2 of the 25 high bids were rejected: Keathley Canyon Block 828 ($1,101,202) and Atwater Valley Block 63 ($650,018).
The rejected bids were significantly below both BOEM’s Mean of the Range-of-Value and Lower Bound Confidence Interval for these single bid tracts (table below).
| Block No. | Company | no. of bids | bid | MROV | LBCI |
| AT 63 | LLOG | 1 | $650,018 | $2,400,000 | $1,800,000 |
| KC 828 | LLOG | 1 | $1,101,202 | $24,000,000 | $23,000,000 |
In the case of Keathley Canyon 828, BOEM’s valuation is more than 20 times the high bid. BOEM valued this block far higher than any other block in the sale.
KC 828 had been previously leased and that lease expired on 9/3/2025. The lease block was part of LLOG’s Buckskin field. Apparently, the lease expired due to inactivity given that the last well reached total depth more than a year prior to the expiration date. LLOG wanted the lease back. BOEM’s rejection sends a message that the price went up (by a lot 😉).
Finally, why didn’t any other company bid on KC 828, a block that has been publicly reported as being part of the Buckskin field?
Bud's Offshore Energy (BOE) 