GulfSlope Energy Inc (GSPE)

[smith199]

The BOEM has delayed their 7th Lease Sale #256 of the 2017-2022 GOM Leasing Program from August to November 2020. Hopefully the delay will afford more Operators to be in a better position during the bidding process.

Gulfslope is still active 7 leases, but their BOEM GI block 102 and VR block 378 primary leases expired on 6/30/2020. They still need an extension date on the VR block 375 SOP. Gulfslope’s other 4 BOEM leases are good.

The Tau SS blocks 351 and 336, the VR block 376 with the potential platform, and the EI block 371 are not expired, in fact, they have several more years to go. The DOI/BOEM/BSEE Federal Regulations are far more relaxed now since the crisis, and Gulfslope did state on their latest SEC filing they were looking at all BOEM/BSEE lease extension options. I think they have more than a good chance on any future lease extension.

If things go well for Gulfslope I anticipate them acquiring more BOEM Leases, probably in their focus area’s.

In short, no I don’t think Gulfslope is going any where. They are in it for the long haul, IMO. But, who knows I might only be partially right. I do know it all comes down to production in the end, and crude pricing is holding with forecasted increases.


Smith