Providing coverage of Alaska and northern Canada's oil and gas industry
July 2010

Vol. 15, No. 30 Week of July 25, 2010

Apache picks up Cade-Donkel inlet leases

Acquires almost 200,000 acres spread across Cook Inlet from Wasilla in the north to Anchor Point in the south, onshore, offshore

Kristen Nelson

Petroleum News

Apache Corp. has been rumored to be interested in acquiring Alaska acreage, and while a portion of BPs interest in Prudhoe Bay was not included in acquisitions announced July 20 (see story on page 1 of this issue), Apache is acquiring almost 200,000 acres in the Cook Inlet basin.

Asked about the possible acquisition by Apache of Cook Inlet leases, Division of Oil and Gas Director Kevin Banks said July 21 that applications for assignments had been received by the division the previous week.

Apache is in the process of acquiring 196,524 acres of Cook Inlet oil and gas leases owned in various proportions by Samuel H. Cade, Daniel K. Donkel, Monte J. Allen, Douglas A. Barr and Daniel J. Donkel, with Cade the majority (and in some cases the sole) owner in most of the leases and Daniel K. Donkel a partner in most.

The leases are scattered over the Cook Inlet basin from the Wasilla area in the north to Anchor Point in the south, both onshore and offshore. The largest acreage block is in the Susitna flats area north of Cook Inlet across from Anchorage.

The State of Alaska is processing applications for assignments of 60 leases, 59 from the Alaska Division of Oil and Gas leases and one Alaska Mental Health Trust lease. (The accompanying map highlights leases included in the assignment applications.)

Cade-Donkel west side acreage includes leases at the Drift River terminal, and, farther north, leases along the west side in the North Forelands and Trading Bay areas, near Lone Creek and near Lewis River.

On the Kenai Peninsula, leases are at Anchor Point, on the northern edge of Pioneer Natural Resources Alaskas Cosmopolitan unit, in the Ninilchik area, primarily offshore between Soldotna and Clam Gulch and onshore in the area between Soldotna and Kenai.

Too early for plans

Apache spokesman Bill Mintz told Petroleum News in a July 21 e-mail that it was too early for the company to discuss its plans in Cook Inlet as it just recently agreed to acquire the leases.

Petroleum News reported in June that Houston-based Apache had made an offer for some of Escopeta Oil Co.s Cook Inlet leases. Escopeta President Danny Davis said at that time that the offer was too low; he also said Escopeta had received another offer for some Escopeta leases.

A Petroleum News source said in June that Apache had made offers other than to Escopeta to buy Cook Inlet basin leases.

Apache has international offshore operations, has been seeking new acquisitions and is known to have been investigating Cook Inlet prospects.

A copyrighted oil and gas lease map from Mapmakers Alaska was a research tool used in preparing this story.

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