The Explorers 2009: Exploration licenses open Susitna

Very little oil and gas exploration has been done in the Susitna basin, the northern extension of the Cook Inlet basin in the valley of the Susitna River. A total of nine exploration wells and four core holes have been drilled in the basin, with all wells subsequently plugged and abandoned as dry holes, although some did have minor gas shows.

There has, however, been some recent interest in Susitna basin exploration, under the terms of exploration licenses that the state issues to encourage the exploration of areas outside of major oil and gas provinces.

In September 2003 the state issued two Susitna basin licenses, each with a seven-year term. One license was held by Forest Oil and has been terminated. The other license is held by Pacific Energy Resources, a company that has gone bankrupt.

More recently, LAPP Resources, an Anchorage exploration company owned by David Lappi, a longtime Alaskan and energy entrepreneur, has applied for an exploration license covering about 21,080 acres near Houston and Willow in the Susitna Valley.