State rejects some bids from Oct. 27 sales

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Petroleum News Staff

The Alaska Division of Oil and Gas said Oct. 28 that it is recommending that the commissioner of the Department of Natural Resources reject three bids from Arctic Falcon Exploration LLC because the bids did not meet the minimum bid requirement of $10 an acre. Arctic Falcon bid $9.49 an acre for tract 2, $5.34 an acre for tract 4 and $5.12 an acre for tract 6. The tracts are at the southwest corner of the state’s North Slope areawide sale area, adjacent to the National Petroleum Reserve-Alaska.

The division is also recommending that the commissioner reject four bids from Mark Anderson for tracts 959, 974, 1098 and 1099 “as there are competing bids and the deficiency is material.”

Anderson bid $20 an acre for tract 959, the only tract on which Armstrong Alaska, which bid $19.79 an acre for the tract, was outbid. Armstrong outbid Anderson on tracts 974, 1098 and 1099.

The division said it is recommending that Anderson “be permitted to correct the deficient bids” on tracts 1082, 1093, 1194 and 1219, “as there were no competing bids making the deficiency immaterial.”

With the Arctic Falcon bids dropped, and an Armstrong bid substituted for one of the Anderson bids, the new total for the North Slope areawide sale is $9,447,756.80, with 61 tracts sold covering 225,280 acres.

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