The Explorers 2009: Aurora Gas

Aurora Gas, one of the smallest producers in Alaska, began in 2000, looking for natural gas opportunities in the Cook Inlet basin. Within five years, the company became the operator of five fields on the west side of the Cook Inlet basin: Albert Kaloa, Lone Creek, Moquawkie, Nicolai Creek and Three Mile Creek. Since 2005, Aurora’s fortunes have shifted for better and for worse. The company discovered gas with an exploration well at Three Mile Creek, but hit a dry hole with its next wildcat, Aspen No. 1. A joint venture with Swift Energy in 2006 led to an unsuccessful well. A legal battle with Enstar over a contract dispute led Aurora to suspend drilling operations for more than a year.

Aurora resumed drilling operations in mid-2008, re-entering the Aspen dry hole, recompleting the Three Mile Creek No. 2 well, and drilling Moquawkie No. 4, which experienced a blowout that the company controlled in less than 24 hours. In 2009, Aurora drilled the Kaloa No. 3 well, a dry hole, and made plans to drill a development well at Nicolai Creek. The company deferred plans for a Moquawkie No. 5 well until natural gas prices improve.

Aurora recently held an open season for natural gas storage facilities at Nicolai Creek — the first third-party storage in the Cook Inlet basin. It hopes to bring the facility into service by the fall of 2010. Aurora produced some 2.1 billion cubic feet of gas in Alaska in 2007. The company leases more than 31,000 acres across the Cook Inlet basin.

Current exploration focus