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Posts Tagged ‘Red Willow’

Only 6 days until the long-awaited Gulf lease sale. Will it be big and beautiful?

Posted in Offshore Energy - General, Gulf of Mexico, energy policy, tagged , , , , , , , , , , , on December 4, 2025| Leave a Comment »

Big Beautiful Gulf of America

Will the oil and gas lease sale boldly named Big Beautiful Gulf 1 (BBG1) live up to its grand name? Given the more favorable lease terms and the 2 year gap since the last sale, BBG1 should surpass the previous 3 sales (table below). Questions:

  • Which majors will be the most active bidders? Chevron? Shell? BP? Oxy/Anadarko?
  • Will former Gulf of Mexico stalwarts Exxon and Conoco Phillips participate for the first time in years? Probably not, but US super-majors should participate in the US offshore program.
  • How many companies will submit bids? Would like that to be a number >35.
  • How many tracts will receive bids? A number >300 would be very encouraging.
  • Will the total high bids exceed $400 million?
  • Will we see an increase in shelf interest?
  • Which independents will be the most active?
  • After the not-so-clever carbon disposal acquisitions in the last 3 sales, will the number of carbon disposal bids be zero? For the first time ever, the Federal government felt compelled to stipulate the obvious (see the proposed notice for OCS Sale 262) – that an Oil and Gas Lease Sale is only for oil and gas exploration and development.

See the summary data below for the last 3 Gulf lease sales. We’ll fill in the blanks next week.

Sale No.257259261BBG1
date11/17/20213/29/202312/20/202312/10/2025
companies
participating		333226
total bids223328423161
tracts receiving bids214324422751
sum of all bids
$millions		198.5309.8441.9
sum of high bids
($millions)		101.7263.8382.2
highest bid
company
block		$10,001,252.00
Anadarko
AC 259		$15,911,947
Chevron
KC 96		$25,500,085
Anadarko
MC 389
most high bids
company
sum ($millions)		46
bp
29.0		75
Chevron
108.0		65
Shell
69.0
sum of high bids ($millions)
company
47.1
Chevron		108
Chevron		88.3
Hess
most high bids by independent14-DG Expl.13-Beacon
13-Red Willow		22-Red Willow
1excludes 36 leases improperly acquired for carbon disposal purposes; 2excludes 69 leases improperly acquired for carbon disposal purposes; 3excludes 94 leases improperly acquired for carbon disposal purposes

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Daenerys project has an interesting mix of partners

Posted in Gulf of Mexico, Offshore Energy - General, tagged , , , , , , , , on August 21, 2025| Leave a Comment »

Talos announced successful drilling results at the Daenerys prospect (Katmai West #2) in the Gulf of America (Walker Ridge blocks 106, 107, 150, and 151).

Daenerys is a good example of the evolution of deepwater project ownership, which was once exclusively the domain of major international oil companies. Over the past 20 years, participation by independents increased gradually, followed by smaller independents and informed investment companies.

Impressively, the Daenerys partnership (table below) includes a tribe that has the same % ownership as a super-major, and a highly efficient investment company owned by a single person.

Talos (operator)large US independent27.0% share
Shellinternational supermajor22.5%
Red Willowprivate company owned by the Southern Ute Tribe22.5%
Houston Energyprivate independent focused on deepwater energy resources10.0%
Cathexisholding company owned by a single individual9.0%
HEQ portfolio company
focused on deepwater Gulf 		9.

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Independents’ Day 😀

Posted in Gulf of Mexico, Offshore Energy - General, tagged , , , , , , , , , , on July 3, 2024| Leave a Comment »

Winterfell from the water surface (5400′ water depth). The field is produced with subsea wells tied back to Oxy’s Heidelberg platform, which is 13 miles away. Deepwater development is characterized by high energy density and low facility density.

Beacon Offshore Energy (BOE, but not this blog 😉) and its partners, all independent producers, have initiated production at the Winterfell project in the Green Canyon area of the Gulf of Mexico. The 3 initial wells are expected to produce 20,000 bbls of oil equivalent (again BOE 😉) per day. The Winterfell partners are:

  • Beacon Offshore Energy, operator
  • Kosmos Energy
  • Westlawn Americas Offshore
  • Red Willow Offshore
  • Alta Mar Energy
  • CSL Exploration

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Sale 261: the deepwater supporting cast

Posted in Offshore Energy - General, Gulf of Mexico, tagged , , , , , , , , , on January 11, 2024| Leave a Comment »

Among the top 10 companies at Sale 261 (based on the number of high bids) are household names Shell, Chevron/Hess, Oxy/Anadarko, and bp, and international majors Equinor (Norway) and Woodside (Australia).

Lesser known companies have also become important deepwater players including two, Red Willow (owned by the Southern Ute tribe) and Houston Energy, that cracked the top 10 bidders list. Other emerging deepwater companies, Ridgewood, CSL Expl, Westlawn, Alta Mar, and CL&F were also active sale 261 participants. All of these companies bid in partnership with other independents.

Company257259261
Red Willow51325
Houston Energy5918
Ridgewood028
CSL Expl113
Westlawn035
Alta Mar009
CL&F003
Number of bids by emerging deepwater players at Sales 257, 259, and 261.
Houston Energy’s GoM portfolio

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Saluting the Christmas lease sale (261)

Posted in Gulf of Mexico, Offshore Energy - General, tagged , , , , , , , , , , on December 22, 2023| Leave a Comment »

  • Biggest prize at the holiday party went to Anadarko: Mississippi Canyon 389 – 5 bids, $25.5 million high bid
  • Biggest holiday shopping spree: Shell’s 65 high bids accounted for 24% of the sale’s high bids (excluding CCS bids).
  • Big spender award: Hess – $88.3 million on only 20 high bids. Does Chevron approve? 😀
  • Aussie, Aussie, Aussie, Oi, Oi, Oi: Strong performance by Woodside. 18 high bids, $24.8 million
  • Heia Norge!: Equinor continues to shine in the GoM! 13 high bids, $20.6 million
  • Spirit of America award to Red Willow Offshore which is owned by the Southern Ute tribe. 22 high bids!
  • Deepwater independents for (energy) independence: Beacon, Murphy, LLOG, Kosmos, Talos, Houston Energy, Ridgewood, QuarterNorth, Alta Mar, CSL, CL&F, and Westlawn
  • Smart shelf shoppers: Arena, Byron, Focus, Cantium
  • Even pace wins the race: Another solid lease sale for bp – 24 high bids.
  • So happy together 😀: Chevron and Hess combined for 48 high bids, $114 million
  • Coal in their stockings? Repsol (Sale 261) and Exxon (Sales 257 and 259) made up their own rules for acquiring carbon dumping leases. Perhaps some solid carbon in their Christmas stockings would be appropriate.
  • Christmas in July?: A lease sale in 2024 is needed. Sometime near the 4th of July holiday would be good. It’s up to you Congress!

Holiday greetings to our friends around the world!

Stocking stuffer for that special person! 😉

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Sale 261 intrigue

Posted in energy policy, Gulf of Mexico, Offshore Energy - General, Regulation, tagged , , , , , on September 26, 2023| Leave a Comment »

Assuming the Gulf of Mexico oil and gas lease sale proceeds tomorrow in accordance with Judge Cain’s order, some interesting questions and issues remain:

  • Will the lingering Rice’s whale issues affect bidding for deepwater leases? Friday’s court order is not a final resolution of those issues, either legally or administratively. While the Rice’s whale stipulation, at the direction of the Federal court, will not be included in the Sale 261 leases, BOEM’s Notice to Lessees and Operators (NTL) includes the same provisions and still stands pending further consultations with NOAA. Although the NTL is a “guidance document” (wink-wink), there are ways of making it stick through the exploration plan approval process. Even without binding requirements, companies might choose to fully comply to minimize legal risks.
  • When will the next GoM lease sale be held? Will the uncertainty spur or constrain bidding?
  • Will the 14 blocks with rejected high bids at Sale 259 receive bids at Sale 261? If so, will the bids be higher or lower?
  • Will bp, Chevron, Shell, Equinor, Oxy, and Woodside continue to be bullish on the GoM?
  • Will Red Willow Offshore, owned by the Southern Ute tribe, again be an active bidder?
  • Will Exxon again seek to acquire carbon sequestration leases at an oil and gas lease sale? After a long absence, it would be good to see the US super-major acquire leases for oil and gas purposes. Ditto for ConocoPhillips.
  • How many companies will participate in the sale? 30-35 would be a nice outcome.
  • What will be the sum of the high bids? >$300 million would be a good result.

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Lease Sale 259 Top Ten: Chevron’s surges, BP is bullish on the GoM, Shell steady, Equinor awakens, Beacon sees the light, OK for Oxy, Red Willow surprises, Hess rebounds, Woodside has BHP, Houston means Energy!

Posted in Gulf of Mexico, Offshore Energy - General, tagged , , , , , , , , , , , , on March 31, 2023| Leave a Comment »

companyno. of Sale 259 high bids
(Sale 257 in parentheses)		total Sale 259 high bids
($ millions)
Chevron75 (34)108
BP37 (46)46.7
Shell21 (20)20.1
Equinor16 (1)18.3
Beacon13 (4)9.0
Anadarko (Oxy)13 (30)8.6
Red Willow13 (5)3.8
Hess12 (2)8.3
Woodside12 (8)6.3
Houston Energy8 (5)11.6
from BOEM data

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OCS Lease Sale 259: more unusual bidding by Exxon, otherwise an impressive sale

Posted in CCS, Gulf of Mexico, Offshore Energy - General, tagged , , , , , , , , on March 29, 2023| Leave a Comment »

  • 313 blocks receiving bids
  • 353 bids
  • 32 companies submitting bids
  • High bids totaled $263.8 million

Exxon doubled down on their strategic CCS bidding; their only bids (69 in total) again appeared to be solely for carbon sequestration purposes. As previously noted, acquiring tracts for CCS purposes is not authorized in an oil and gas sale. Arguably, these bids should be rejected.

The other super-majors, BP, Chevron, and Shell, were active participants as were many independents.

It was good to see BOEM Director Liz Klein announcing bids. This shows respect for the OCS oil and gas program.

It was also good to hear that Red Willow, a native American corporation, was again an active participant.

More to follow.

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Refreshing wisdom from Sale 257 bidders

Posted in Gulf of Mexico, Offshore Energy - General, tagged , , , , , , , on September 14, 2022| Leave a Comment »

Some of the lesser known Sale 257 bidders are intriguing. These companies have a clear and refreshing sense of identity and mission. Observations:

Red Willow Offshore LLC, high bidder on 5 blocks, is a private oil and gas exploration and production company owned by the Southern Ute tribe and headquartered in Ignacio, Colorado. Great mission statement: “Our mission is to create value for the Southern Ute Indian Tribe by exploring for and developing oil and gas resources while prioritizing safety, fiscal responsibility and respect for the environment and Tribal Cultural resources.”

Otto Energy was high bidder on 1 block. If you wonder about the company name, Otto Energy was known as Ottoman Energy until 2006. Otto’s vision is to achieve outstanding business delivery as a partner of choice in the Gulf of Mexico. Their production base includes the South Marsh Island Block 71 field and interest in the Green Canyon 21 Bulleit field.

DG Exploration focuses on new play concepts for the mature continental shelf of the US Gulf of Mexico. They were the high bidder on 14 blocks. According to DG, these blocks control 5 of the best prospects in their portfolio. All the blocks are located in a prolific part of the basin where new high potential exploration has been absent since the early 1990s. By bringing in new technology and ideas, they aim to fundamentally reset the creaming curve for the Louisiana shelf.

Juneau Oil and Gas was high bidder on 4 blocks. Juneau was formed to focus a world class team of professionals on exploring the shallow waters of the Gulf of Mexico.  Juneau Oil & Gas has returned to the roots of the founding members’ past success at an opportune and strategic time in the ever-evolving oil and gas industry. Juneau correctly notes that “lease acquisition costs and royalty rates in the shallow water Gulf of Mexico are low relative to other basins, and there has been little competition for these leases after the steep and sustained decline in activity over the past decade.” 

Focus Exploration LLC was high bidder on 7 blocks. Like other GoM shelf companies, Focus’ principals created the company with the purpose of identifying and participating in high quality, low to moderate risk oil and gas projects.  

CSL Exploration LP was high bidder on 1 block. CSL Capital Management, L.P. is an SEC registered investment firm focused on energy services and equipment businesses.  Headquartered in Houston, the CSL team has deep sector expertise in the energy industry and takes a hands-on approach to investments, relying on organic growth and strategic thinking to generate investment success.

Blackcomb Energy LLC was the high bidder on 1 block. Information on this company is limited, but it looks like they have onshore production in Colorado.

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