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DNR grants O&G lease rent extensions
Kristen Nelson Petroleum News
The monthly lease report for May from the Alaska Department of Natural Resources’ Division of Oil and Gas contains a combination of confirmations of actions taken by companies in the past and reactions to the current COVID-19-driven economic situation.
Working interest lease ownership transfers between Armstrong, GMT, Oil Search Alaska and Repsol reflect an option which Oil Search exercised last summer to increase its stake in Pikka and Horseshoe leases west of the central North Slope. Oil Search picked up the balance of working interest ownership held by Armstrong and GMT in the acreage. Oil Search and Repsol also aligned their interests across many of their shared North Slope assets.
There are also some notification lessee changes, from Repsol E&P USA Inc. to Oil Search (Alaska) LLC.
Extension of rental payments In a reflection of the current economic situation, Accumulate Energy Alaska Inc. and Burgundy Xploration LLC requested from DNR Commissioner Corri Feige, and received May 4, extensions of oil and gas lease rental payments.
The two companies, along with Premier Oil ANS Ltd., which is included in the lease extensions as a working interest owner, have a swarth of leases across the bottom of North Slope leased acreage, running from south of Kuparuk in the west to south of Prudhoe in the east and straddling the Dalton Highway.
The division’s summary of acreage by lessee shows Accumulate with 245,928 acres, Burgundy with 112,325 acres and Premier with 95,914 acres, a combined 454,167 acres.
The companies applied under state statute, which allows the DNR commissioner to grant an extension for payment of rental on any mineral lease upon a finding that compliance with the rental payment requirements is prevented by reason of war, riots or acts of God.
“President Trump and Governor Dunleavy have both declared states of emergency, nationally and in the state, for the unprecedented COVID-19 outbreak. The social and economic restrictions of this have placed an unanticipated burden on Alaskan businesses that justifies an extension of time within which to make payments,” Feige said in granting the requests.
The companies received six-month extensions for oil and gas lease rentals due in June, July and September and three-month extensions for rentals due in October and November.
Surrendered leases Also reflected in the May activity report, Great Bear Pantheon LLC has surrendered 11 leases. Four of the leases form a block on the west side of the North Slope south of Nuiqsut, isolated from other Great Bear Pantheon leases which are contiguous. The other seven leases which the company surrendered are a strip of leases on the northern edge of the company’s southcentral North Slope lease block, and leases adjacent to those to the south on the western edge of the lease block.
According to the division’s June 4 summary of acreage by lessee, that leaves the company with some 125,000 acres of North Slope oil and gas leases.
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