Caelus Energy Alaska is in the process of closing on a majority interest in NordAq's Smith Bay tracts, Pat Foley, senior vice president of the company's Alaska operations, told a joint meeting of the House and Senate Resources committees in Kenai this morning.
He said he'd been locked in a room for the last two days with representatives of NordAq, owner of the 26 leases, some 117,000 acres, Doyon Drilling and Cruz Construction.
Foley said when the deal closes tomorrow Caelus will be 75 percent working interest owner and operator at what he called a highly prospective oil play. He said the deal is expected to close tomorrow, be recorded Friday, and allow Caelus to drill two exploratory wells this winter.
- KRISTEN NELSON
See story in June 21 issue, available June 19 at www. PetroleumNews.com