Savant Alaska partnering with Bordeaux Energy on Kupcake
A Canadian company is joining Savant Alaska LLC in the search for oil in a small North Slope prospect.
Savant signed a participation agreement with Vancouver-based Bordeaux Energy Inc. back in December for development of the Kupcake prospect, adjacent to BP’s Liberty prospect on the North Slope.
Under the agreement, Bordeaux will pay 40 percent of the cost for an upcoming test well at Kupcake in return for a 30 percent interest in seven Savant leases in the area.
Bordeaux also agreed to pay 30 percent of the land and data costs associated with the project and made an initial payment of around $1.2 million for lease payments and seismic work already undertaken by Savant. Bordeaux also intends to pay Savant around $1.1 million for a share of the expenses Savant has already incurred in the project.
Bordeaux could end up paying slightly less because of a previous farm-in agreement between Savant and True North Energy Corp.
Note: The full story will be published in the Jan. 27 edition of Petroleum News, which will be available online to subscribers on Jan. 25.
CORRECTION: NPR-A Northeast, Northwest open
The Bureau of Land Management opened the Northeast and Northwest planning areas of the National Petroleum Reserve-Alaska as of December 2007.
A Petroleum News bulletin from Jan. 17 was in error.
The BLM uses different criteria for determining the appropriateness of opening the Northeast and Northwest planning areas of the NPR-A.
The decision to open the Northeast planning area is based on stipulations governing conditions on the ground, as determined by an Authorized Officer. Lon Kelly with the Northern Field Office of the BLM made that determination late last year.
The Northwest planning area is governed by a Required Operating Procedure stating, “Ground operations shall be allowed only when frost and snow covers are at sufficient depths to protect the tundra.”
The Northwest planning area met that requirement on Dec. 21, allowing certain low-ground-pressure vehicles to use the area for off-road activities.
Because no activity is on going in the South planning area, a ruling on opening travel in the region is mute.