Although bidding at Sale BBG2 was rather subdued, Gulf heavyweights BP, Chevron, Shell, and Oxy/Anadarko, along with increasingly important Woodside Energy, competed for the 4 red blocks in the Green Canyon area (map above and table below). These elephant hunters presumably see excellent Paleogene (Wilcox) prospectivity in those blocks.
17 of the sale’s 38 bids (45%) and $32.8 milion of the sale’s $47 million in high bids (70%) were for these 4 blocks. BP’s $21 million bid for GC 404 was by far the sale’s highest bid.
| Green Canyon Block No. | No. of bidders | High Bidder | Bid |
| 404 | 5 | BP | $21,009,990 |
| 405 | 2 | BP | $885,99 |
| 448 | 5 | Chevron | $4,967,067 |
| 492 | 5 | Chevron | $5,887,188 |
At this time, the high costs and technical complexities (e.g. deepwaterand high pressure/high temperature reservoirs) limit Wilcox development to major oil companies and well financed, technically savvy independents. Expect some of the international majors that did not participate in BBG2 to acquire lease interest at a later date, which will again raise questions about the merits of joint bidding restrictions.
Imbedded below is a good presentation on the Paleogene Wilcox by Dr. Mike Sweet, Univ. of Texas:
Bud's Offshore Energy (BOE) 