Trading Bay enters into agreement with U.S. Petroleum Corp.

Posted: Wednesday, June 26, 2002

ANCHORAGE (AP) -- Trading Bay Energy Corp. has entered into an agreement with U.S. Petroleum Corp. of Vancouver, British Columbia, to sell all of its Cook Inlet working interest holdings.

''U.S. Petroleum has entered into this agreement with intent of doing the proper permitting and drilling of wells,'' Paul Craig, owner of Trading Bay Energy, told Petroleum News Alaska.

The 1,156-acre Marie Prospect is on the northwest boundary of the Beluga River gas field on the west side of Cook Inlet, Craig said. The 7,040-acre Hanna Prospect is adjacent to the Pretty Creek unit to the south, Lewis River unit to the north and Ivan River unit to the east.

The agreement to sell depends upon issuance of leases pending at the state Division of Oil and Gas. The deal will close once the leases are issued, Craig said.

U.S. Petroleum will get a 100 percent working interest in the leases.

''I'll have an interest, not a working interest but a small overriding interest,'' Craig said.

A lease upon which Craig was apparent high bidder in this year's National Petroleum Reserve-Alaska sale is not included.

''U.S. Petroleum has looked at Cook Inlet for a long time,'' said Steve Summar, an independent Tulsa-based oil and gas producer/operator acting as a broker in the transaction.

Summar confirmed that U.S. Petroleum wants to see the properties explored and developed as soon as possible. He said it is probable that U.S. Petroleum will farm out the leases to an operator in exchange for participation.

''USPT intends to use local professionals and service companies in all its Alaskan operations where practical,'' Summar said.

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