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Inlet lease sale set for Wednesday

Posted: June 21, 2011 - 9:33am

The state will hold its annual Cook Inlet area-wide lease sale Wednesday and has set the yearly Beaufort Sea, North Slope and North Slope foothills sale for Oct. 26, the Division of Oil and Gas said in a press release.

The oil and gas division will offer new conditions and options in both sales to stimulate industry interest, Bill Barron, new director of the division, said in the statement.

Both sales will be held in Anchorage. Alaska’s area-wide sales for different regions of the state are held yearly and offer all unleased acreage in the area.

“Consistent with the state’s effort to boost oil development, the lease sale terms are expected to include options not previously seen in lease sales in these areas,” Barron said. “The (state) Department of Natural Resources intends to aggressively market its offerings, and will include tracts bordering the 1002 area of the Arctic National Wildlife Refuge.”

The Cook Inlet sale is expected to attract interest because of a recent gas discovery on the Kenai Peninsula, an area where gas fields have produced for years but where new exploration, spurred by state financial incentives, is under way.

Buccaneer Energy, subsidiary of an Australian company, recently announced that its Kenai Loop No. 1 exploration well flowed at 30 million cubic feet per day in a test and will be capable of sustained rates of 6 million to 8 million cubic feet per day in long-term production. Buccaneer is planning a second well this fall.

The state is also offering acreage in the June 22 lease sale that is adjacent to a confirmed oil discovery at Cosmopolitan, an offshore prospect in Cook Inlet. Pioneer Natural Resources recently relinquished acreage at the location but is retaining some leases on the discovery.

Pioneer conducted flow tests at Cosmopolitan but encountered problems in producing through horizontal wells drilled from shore.

In October all unleased acreage in state-owned submerged Beaufort Sea lands, out to the three-mile state territorial limit, as well as onshore central North Slope and the foothills region in the southern North Slope will be offered.

Several companies, including Anadarko Petroleum and PetroCanada, have relinquished leases in the foothills recently because the area is gas-prone and construction of an Alaska gas pipeline appeared stymied by a surplus of gas in the Lower 48.

However, interest in the foothills region could be stimulated by a state plan to build a resources road to improve access to the area by explorers and an independent company’s plan to develop a small oilfield at Umiat, within the National Petroleum Reserve. Houston-based Renaissance Umiat LLC hopes to use the gravel road built by the state as a base for a buried pipeline to connect the field with the Trans-Alaska Pipeline System.

Tim Bradner can be reached at tim.bradner@alaskajournal.com

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spwright
1376
Points
spwright 06/22/11 - 07:19 am
0
0
B P & Exxon

Wed. 6/22/11
B P has proven to neglect their responsibilities & that caused the Death of Their Own Employees & also the largest Oil Spill
in American History.

Exxon has a very Ugly Past in Alaska & still has NOT Paid What is Owed to Alaskans then the Supreme Court sides with Exxon.

The Question is : WHY does the State of Alaska continue to Do Business with these Corporate Giants ? ?
They have already Proven that they can NOT be Trusted.

SPW in Slooooooowdotna

cheapersmokes
832
Points
cheapersmokes 06/22/11 - 07:42 am
0
0
Oil in Alaska!

I cannot understand why the state just doesn't keep an oil lease for it's own use and tell the big oil companies to take a hike. They could develop their own producing well and if needed use some of the PFD funds to construct a pipeline to an in state refinery and then sell the gasoline to in state owned gas stations for less than $2 a gallon and only to vehicles with an Alaskan license plate. This would either cause the big oil companies to match the prices or close up operations in the retail business in the state. Their are more than enough local citizens who could run the well head and the pipeline and refinery already here,

stuartw13
-10
Points
stuartw13 12/25/11 - 01:49 am
0
0
Banner Stands Analogical

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