Cook Inlet Energy LLC terminated the Otter unit earlier this year.
After claiming disappointing results from recent drilling, the subsidiary of Tennessee-based independent Glacier Oil & Gas Corp. voluntarily terminated the west side Cook Inlet unit and surrendered the leases in March 2016, according to recent state documents.
The Alaska Department of Natural Resources formed the unit in October 2013, after Cook Inlet Energy agreed to work commitments backstopped by a $1.2 million bond.
The initial plan of exploration for the unit required Cook Inlet Energy to either deepen its existing Otter No. 1 exploration well to 7,000 feet or drill a separate delineation well to that depth and then to either drill a follow-up well or relinquish the unit by March 2016.
Cook Inlet Energy drilled the Otter No. 1A sidetrack in January 2014. "Although CIE reached the target depth and gas bearing zones were found, gas was not encountered in sufficient quantities to warrant further drilling in the area," CEO Carl Giesler told state officials in a March 8, 2016, letter. By terminating the unit before the final deadline, the company believed it was entitled to reclaim the original $1.2 million performance bond.
- ERIC LIDJI