Nikaitchuq enters sustained production
The Alaska Division of Oil and Gas took care of some lease housekeeping in March.
With the Nikaitchuq unit now in sustained production, the division enacted royalty modification on 11 leases at the nearshore unit off the northern coast of Alaska. The actually royalty rates will remain at the normal 12.5 percent level as long as oil prices remain above an inflation-adjusted price of $42.64 per barrel. However, the 11 leases are only eligible for modification during the first 25 years of sustained production.
Escopeta Oil now owns more of its Kitchen Lights unit.
Partner Taylor Minerals LLC gave Escopeta a 19.75 percent working interest and a 14.8 percent royalty interest in 19 leases at the offshore unit in upper Cook Inlet. Taylor previously held a 25 percent interest in the leases and retains a 5.25 percent interest.
Escopeta in turn transferred a portion of its working and royalty interest in Kitchen Lights to a subsidiary called Escopeta Oil of Alaska LLC, giving it 79 percent interest.
The division also awarded leases from the October 2010 North Slope areawide lease sale, issuing 99 leases to Great Bear Petroleum, 22 leases to Dan Donkel, and one lease apiece to ConocoPhillips and the Kansas-Based Alaska Venture Capital Group.
Finally, BP allowed a 1,560-acre lease between Prudhoe Bay and Milne Point to expire.
—A copyrighted oil and gas lease map from Mapmakers Alaska (www.mapmakersalaska.com/) was a research tool used in preparing this story.
—Eric Lidji
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