|
THE EXPLORERS 2005: Trading Bay looks for drilling capital Independent is holding discussions with companies interested in its Cook Inlet Hanna prospect Alan Bailey Petroleum News
Paul Craig, owner of Trading Bay Oil and Gas LLC, has told Petroleum News that his company is currently holding discussions with parties interested in his Hanna prospect. However, there are no existing commitments regarding that prospect, he said.
The Hanna prospect, named after one of Craig’s daughters, lies under five Trading Bay Oil and Gas leases between Pretty Creek and Lewis River on the west side of the Cook Inlet.
“It’s right over the infrastructure and it’s right on structure right between up dip gas at Lewis River and down dip gas at Pretty Creek,” Craig told Petroleum News. “So it would seem to be an attractive prospect from all perspectives.”
Craig said that he started in the oil and gas industry in 1993 when, as Trading Bay Energy Corp., he purchased some oil and gas leases in the Cook Inlet basin. His original goal was to drill some wells but “from the school of hard knocks I learned how challenging it is to raise risk capital for drilling,” he said.
In 1997, not having raised enough money to move forward with a drilling project, Craig sold all of his company’s holdings to Forcenergy. He planned to participate with up to 10 percent working interest in those leases and any surrounding leases that may have been included in a unit. He also retained a small overriding royalty interest. When Forcenergy went bankrupt Forest Oil took over the leases.
All of the leases subsequently expired, except for one lease that became integrated into the Ninilchik unit on the Kenai Peninsula, he said. This lease has become the subject of a legal dispute with Unocal and Marathon.
“There was a case in federal district court where I attempted to have contractual rights to participate honored by Unocal and Marathon,” Craig said. Unocal and Marathon interpret the contract differently than I do, he said.
Craig said that the federal court agreed with Unocal and Marathon and that the case has now gone to the appellate court.
Started buying again In 2001 Craig started shopping for leases again. He focused primarily on the west side of Cook Inlet and picked up the five Hanna prospect leases between Pretty Creek and Lewis River. He also picked up a lease in the northwest corner of the Beluga gas field.
Pelican Hill Oil and Gas farmed into the Beluga prospect and drilled a dry hole there after drilling a duster in a Unocal lease in the Trading Bay area. Pelican then left the state.
“I’ve got the five leases associated with the Hanna prospect and continue to own the Pelican Hills dry hole one and there may be a deep oil prospect (there), but I’ve yet to decide what I’m going to do with that lease,” Craig said.
NPR-A lease As an individual, Craig owns a 50 percent interest in a lease that covers the northern half of the Umiat oil field in the National Petroleum Reserve-Alaska.
“I acquired that in 2003 with the notion that it’s a 10-year lease and oil prices look likely to increase and infrastructure move closer,” Craig said.
Meanwhile Craig is patiently looking for drilling capital, a partner, a farmout or even a purchaser for his Hanna prospect.
“My goal is to get that drilled,” Craig said.
Meanwhile Craig is patiently looking for drilling capital, a partner, a farmout or even a purchaser his Hanna prospect. And meantime Craig has engaged an assistant to work on the permitting a well in the prospect, although he doesn't now expect to drill in the winter of 2005-2006. "I am moving forward with permitting the well," Craig said.
| 