The Alaska Division of Oil and Gas received two bids in this year's Cook Inlet online oil and gas lease sale and no bids in the Alaska Peninsula sale. The sale results were posted earlier today on the division's website.
The bids were from Furie Operating Alaska LLC and are for tracts adjoining that company's Kitchen Lights unit in northern Cook Inlet. Furie produces natural gas from the Julius R platform at Kitchen Lights.
Furie bid $19.75 per acre for tract 352, a total of $50,560, and $19.57 per acre for tract 361, a total of $50,099.20. There are 2,560 acres in each tract.
In last year's Cook Inlet sale the state received eight bids for three bidders, including Furie Alaska Operating and HEX LLC, which owns Furie.
In a statement the Department of Natural Resources said the tracts covered 5,120 acres with some $100,649 in bonus bids, according to preliminary results from the sale.
"It's encouraging to see a local producer continue to invest in Alaska, especially our Cook Inlet region," said DNR Deputy Commissioner John Crowther. "At a time when utilities are looking to secure new sources of natural gas to meet local energy demand, reinvestment by an existing operator is a good sign."
- KRISTEN NELSON
See story in May 29 issue of Petroleum News, available online May 26 at www.PetroleumNews.com.
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