In the beginning it took the vast financial resources of the major oil and gas companies to develop the Cook Inlet's reserves, companies willing to invest mega billions of dollars to get the resource to market.
As the production of the oil and gas fields decline however, so does the interest from the major oil companies that require huge operating capitol to do business.
As operations become non-profitable for the major companies, opportunities for independent companies such as Aurora Gas develop. Such opportunities led Ed Jones and his partners in the privately owned Aurora Gas, LLC to begin acquiring properties in the Cook Inlet.
The Alaskan company with headquarters in Houston, Texas began working here several years ago and February '01, announced successful test results of a work over well project at the Nicolai Creek unit#3. That success launched further activity by the independent oil company, "It's been a very busy year for Aurora Gas. We've done a fair amount of work on the ground and actually developing our first well and getting production facilities in and the well on stream. We've also done some major work-over on several wells at Nicolai Creek and have had a very busy year," said Ed Jones, Executive Vice President and co-founder of Aurora Gas. Jones addressed the Kenai Chapter of the Alliance recently at their noon luncheon.
Aurora Gas recently joined forces with Kaiser-Frances Oil Company of Okalahoma and secured a $25 million dollar line of equity, "Without those resources we would not have been able to do what we have been doing," said Jones. A few weeks ago the company announced that they had acquired the 50% working interest and leasehold held by ConocoPhillips Alaska in the Moquawkie area on the west side of the Cook Inlet.
"With our new acquisitions we will be getting even busier, drilling and proving wells and then building the infrastructure to get the gas to market," Jones told the Alliance. Jones says that Aurora Gas is a lean and mean company with only a few employees, but that the new investment will certainly mean work for local contractors, "We expect to spend a lot of money and most of it locally," affirmed Jones.
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