Leasehold Acreage
As of December 31, 2014, we owned interests in 266 blocks within the deepwater U.S. Gulf of
Mexico, representing approximately 1.5 million gross (0.8 million net) acres. We are the designated
operator of 238 of these blocks, or approximately 89% of our U.S. Gulf of Mexico leasehold acreage.
The following schedule shows the developed and undeveloped acres in which we held interests as of
December 31, 2014 in the U.S. Gulf of Mexico.
Developed
Undeveloped
Lease Acres(1)
Lease Acres(2)
Gross
Net
Gross
Net
U.S. Gulf of Mexico . . . . . . . . . . . . . . . . . . . 17,280 1,620 1,494,470 764,308
(1) Our developed lease positions of 17,280 gross (1,620 net) acres are entirely related to our
Heidelberg project. The Heidelberg project was sanctioned for development in mid-2013
and all of the leasehold acreage associated with the Heidelberg project is held by a
Suspension of Production, which was granted by the U.S. Department of the Interior for
the federally-approved Heidelberg Unit. Anadarko, as operator, estimates first oil
production from Heidelberg in the first half of 2016.
(2) Our Shenandoah, Anchor and North Platte projects are not yet sanctioned for
development and therefore the acreage associated with these projects remains classified
as undeveloped. We estimate that the North Platte project covers U.S. Gulf of Mexico
blocks, either wholly or partially, representing 34,560 gross (20,736 net) acres; the
Shenandoah project covers U.S. Gulf of Mexico blocks, either wholly or partially,
representing 14,400 gross (2,880 net) acres; and the Anchor project covers U.S. Gulf of
Mexico blocks, either wholly or partially, representing 20,160 gross (4,032 net) acres. If
development projects related to North Platte, Anchor and Shenandoah are sanctioned, we
will evaluate which acreage associated with these projects could then be classified as
developed acreage.
The royalties on our lease blocks range from 12.5% to 18.75% with an average of 16.34%.
Most of our U.S. Gulf of Mexico blocks have a 10-year primary term, expiring between 2016 and
2024. Assuming we are able to commence exploration and production activities or successfully exploit
our properties during the primary lease term, our leases would extend beyond the primary term,
generally for the life of production. Our leasehold interest in the U.S. Gulf of Mexico increased by
113,760 gross (65,804 net) acres in 2014. This increase was due to the acquisition of 53 blocks through
the Central Gulf of Mexico lease sale 231 and certain trades with other industry participants, which
were offset by the relinquishment of 30 blocks as a result of lease expiration, trade and sale.
The table below summarizes our undeveloped acreage scheduled to expire in the next five years in
the U.S. Gulf of Mexico.
Undeveloped Lease Acres Expiry
2019 and
2015(1)(3)
2016(1)(2)(3)
2017(3)
2018(1)(3)
thereafter(1)(2)(3)
Gross Net
Gross
Net
Gross Net
Gross
Net
Gross
Net
U.S. Gulf of Mexico . . 57,600 16,783 362,880 203,109 92,160 46,388 595,910 287,131 368,640 207,441
(1) The gross and net acreage numbers reflected in these columns include portions of the estimated
14,400 gross (2,880 net) acres covering U.S. Gulf of Mexico blocks associated with our Shenandoah
project, upon which exploration and appraisal wells have both discovered hydrocarbons, but a
development project has not yet been sanctioned. The leasehold acreage in the Shenandoah
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