Bluenergies wins Gulf of America lease

Executive Summary

• Bluenergies Ltd. secured the top bid in the Bureau of Ocean Energy Management's (BOEM) March 11, 2026, lease sale, acquiring a 100% working interest in the SS-59 block in the Gulf of America.
• The lease covers 5,000 acres in shallow water (less than 20 feet) within the Crown Royal prospect, with an official signing expected in the coming weeks.
• The company has engaged an independent Houston-based engineering firm to conduct a reserve valuation of the SS-59 block to inform future drilling and development plans.

Key Details

• Lease Terms: 100% working interest in Block SS-59, a 5,000-acre block with a five-year term.
• Location: Shallow water (less than 20 feet) in the Gulf of America, specifically within the Crown Royal prospect offshore Louisiana.
• Geological Context: The Crown Royal play is a channel levee complex containing five objective sand intervals between 11,600 feet and 17,180 feet.
• Historical Data: The area was previously drilled by Texaco in 1987 (Texaco No. 1) on the adjacent SS-52 block. That well proved oil and gas/condensate bearing reservoir quality sands in five intervals.
• Previous Production: The Texaco well successfully flow-tested two of the five intervals at a rate of 1,398 barrels of oil per day (light oil) and 5.54 million cubic feet of gas per day. Both zones were over-pressured.
• Strategic Rationale: Management cites current commodity prices, existing production infrastructure within 10 miles, and new 3-D seismic data as factors enabling profitable development, contrasting with the 1987 decision to abandon the discovery due to low prices ($20/bbl oil, $2.00/Mcf gas) and poor 2-D seismic data.
• Next Steps: An independent third-party engineering firm in Houston is conducting an independent valuation of the Crown Royal (SS-59) oil and gas reserves to determine full-scale economics.

Notable Quotes

• "The new 5,000-acre lease (SS-59), encompassing approximately 50 per cent of the Crown Royal prospect, represents untapped value in today's market. The block highly complements BLU's high-potential basin floor fan play, currently being explored jointly with TotalEnergies in the Harper basin, offshore Liberia. Together, these assets provide significant balance to BLU's risk-reward profile pairing shallow water, low-risk drilling opportunities with high-impact deepwater upside." — Craig Steinke, Chief Executive Officer