Abandoned west side facilities acquired

Posted: Wednesday, December 16, 2009

Cook Inlet oil and gas assets abandoned earlier this year by Long Beach, Calif.-based Pacific Energy were acquired Tuesday by Cook Inlet Energy in an approximately $2.25 million deal.

This comes according to an official from the Department of Natural Resource's Division of Oil and Gas.

Pacific Energy had numerous west side assets including state oil and gas leases, the West McArthur River field, the Redoubt Shoal field, the Osprey platform and its Kustatan onshore production facility and the West Foreland Field with two producing natural gas wells.

On Sept. 10, a bankruptcy judge in Delaware ordered Pacific to abandon its Alaska assets leaving the state to pick up the pieces.

Since then, Alan Dennis, an asset manager for Oil and Gas, said the state has taken steps to winterize the facilities and associated pipeline equipment.

"Between September 14 and today, we have basically done the work necessary to preserve the assets," Dennis said.

Calls placed to the Anchorage-based Cook Inlet Energy on Tuesday evening were not immediately returned.

According to the Department of Commerce, the company was formed this past January.

Dennis said the company is made up largely of former Pacific employees.

He said the company has been "in the hunt for assets since June or May," but didn't have the money to bring this deal together.

In the process of getting financing, Cook Inlet became a wholly owned subsidiary of Huntsville, Tenn.-based Miller Energy Resources.

Dennis estimated that the McArthur River field could go back online within days if the company chose to, however the Osprey would take up to 18 months before it could be operational again.

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