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February 2017

Vol. 22, No. 8 Week of February 19, 2017

State expands Pikka unit

The Alaska Department of Natural Resources has agreed to expand the Pikka unit to include 24 leases along its southern end, according to a recent lease report from the state.

Armstrong Energy LLC requested the expansion last year to accommodate its drilling plans for the unit. The expansion added 17 leases to the west side of the unit and seven to the east side. The western expansion area will allow Armstrong to drill as many as 62 wells targeting the Nanushuk, Alpine and Kuparuk formations. The eastern expansion area would accommodate as many as 16 wells targeting the Alpine formation.

The expansion was approved retroactive to Nov. 26, 2016. The company announced a major oil discovery at the unit last year and filed a plan of development in a permit application to the U.S. Army Corps of Engineers in June 2015.

The Corps is currently working on an environmental impact statement for the project.

Other leasing news

As part of the bankruptcy proceedings for subsidiaries of Linc Energy Ltd., Malamute Energy Inc. has acquired a 97.5 percent working interest in Renaissance Umiat LLC.

Renaissance Umiat LLC holds leases at the Umiat oil field in the foothills of the Brooks Range and the National Petroleum Reserve-Alaska, including state lease ADL 390720.

At the offshore Redoubt unit, the state has received 12 separate assignments from four independent investors to transfer small royalty interests (in values less than 1 percent) in five leases to operator Cook Inlet Energy LLC. The investors are Gerald F. Pescuma, Donna Marie Gloria, Patricia Lynn Bledscoe and Doris Bailey. The leases are ADL 374002, ADL 378114, ADL 381003, ADL 381201 and ADL 381203.

The state terminated five Doyon Ltd leases - ADL 392460, ADL 392466, ADL 392467, ADL 392468 and ADL 392469 - in the Nenana basin for failure to pay rent.

The state approved the transfer of 0.625 or 1.40625 percent royalty interests in 11 leases from GMT Exploration Co. LLC to GMT Exploration North Slope Royalty Co. II LLC. The leases are ADL 392,003, ADL 392004, ADL 392005, ADL 392041, ADL 392042, ADL 392043, ADL 392044, ADL 392045, ADL 392046, ADL 392050 and ADL 392051.

Hilcorp Alaska LLC surrendered four Cook Inlet leases. ADL 392656 and ADL 392659 were onshore leases east of the Deep Creek unit. ADL 392656 included the Pan American Edna May Walker USA No. 1 well. ADL 392635 was an onshore lease along the coastline east of the Ninilchik unit. ADL 392648 was an offshore lease adjacent to the Redoubt unit.

All four leases were set to expire Feb. 28, 2025.

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

- ERIC LIDJI






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