NEWS BULLETIN

February 25, 1998 --- Vol. 4, No. 12February 1998

Sale 85A-W (Cook Inlet reoffer)

A 50/50 partnership of Forcenergy Inc. and Unocal Alaska Resources dominated state oil and gas lease sale 85A-W (Cook Inlet reoffer).

At the bid opening in Anchorage Feb. 24, the state had 35 valid bids on 24 tracts of 157 offered, and took in $828,807.37 in high bonus bids on 98,010.77 acres of 757,878.13 acres offered.

The minimum required bid was $5 an acre; the average high bonus bid per acre was $8.46; and the highest per acre bid was $27 by a bidding group of 75 percent Michael R. Sexton and 25 percent Cliff Burglin for tract 116, offshore south of the South Middle Ground Shoal gas field.

The Forcenergy/Unocal bidding partnership won nine tracts, a total of $445,639.99 in high bonus bids. Forcenergy took three tracts independently, for a total of $108,874.25. Together, the two companies accounted for 67 percent of high bonus bids at the sale.

Three of the tracts won by the Forcenergy/Unocal bidding group are adjacent on the east and southeast to the Forcenergy-operated Redoubt Shoal. The other six tracts are on the west side of the inlet west and southwest of Forcenergy’s West McArthur River unit on West Foreland and onshore and offshore at Redoubt Bay.

Forcenergy won a tract at the southern end of this block, and another tract adjacent to acreage it already owns southwest of West Foreland. Forcenergy also acquired a tract at Trading Bay.

The only other producer to bid at the sale was Marathon Oil Co., which acquired a tract west of Kenai between the Cannery Loop and Sterling gas fields, both of which Marathon operates, for $27,069.54.

A bidding group of 75 percent Michael R. Sexton and 25 percent Cliff Burglin took three tracts, one offshore south of the South Middle Ground Shoal gas field, one onshore north of Kenai and the third onshore east of Soldotna for $67,529.

A bidding group of 75 percent Lewis E. Vondra and 25 percent Cliff Burglin took three tracts, one onshore/offshore tract north of Kenai and two onshore tracts east of Soldotna, for $54,558.

A bidding group of 50 percent Richard E. Wagner and 50 percent Dan R Gilbertson took three adjacent tracts south of Soldotna for $53,302.60.

A bidding group of 50 percent Richard E. Wagner and 50 percent Monte J. Allen took one tract adjacent to the Redoubt Shoal unit on the southwest for $42,938.22.

Monte J. Allen took one tract, a west side onshore/offshore tract opposite the northern end of Kalgin Island, for $28,895.77.

The Department of Natural Resources division of oil and gas noted on its preliminary sale report that two bids by Marathon and one bid by the bidding group of Sexton and Burglin “are currently being considered for rejection” because bid deposits submitted with the bids did not meet the 20 percent minimum required.


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