NEWS BULLETIN

September 02, 2011 --- Vol. 17, No. 76September 2011

DOG declines formation of Donkel unit

The Alaska Department of Natural Resources has turned down an application by Donkel Oil and Gas LLC to form a proposed Donkel Oil and Gas unit in state waters of the Beaufort Sea, offshore the Arctic National Wildlife Refuge, not far from the Point Thomson oil and gas field.

The company applied in April for approval of the unit, which encompasses seven lease tracts, one of which includes the Stinson No. 1 exploration well, completed by ARCO in 1990. Donkel Oil and Gas, under its managing partner Daniel K. Donkel, had proposed a four-year plan of exploration for the unit, if formed, including a 3-D seismic program and the drilling of an exploration well, or re-entry of the Stinson well.

Five of the seven leases earmarked for the proposed unit were due to expire at the end of May.

In a notice issued today, William Barron, director of Alaska’s Division of Oil and Gas, said that Donkel Oil and Gas had not proposed any activity requiring unitization and that could not be carried out on leased rather than unitized land.

“Should any leases proposed for inclusion in the Donkel Oil and Gas unit expire … the area could be re-offered at lease sale by competitive bid, thereby enhancing competition amongst parties seeking to develop and produce oil and gas resources,” Barron wrote. “Allowing Donkel Oil and Gas LLC to unitize and hold state leases is contrary to the public interest.”


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