BlueCrest may partner with WesPac

BlueCrest Energy Inc. could be bringing on a partner to develop the natural gas resources at the Cosmopolitan project, according to a recent report in the Peninsula Clarion.

As the Texas-based independent develops the oil resources at the offshore field near Anchor Point, the company plans to work with WesPac Midstream LLC to develop the gas resources, BlueCrest President J. Benjamin Johnson recently told a business group.

“BlueCrest’s focus initially has been oil. We need to get that well producing, we’re doing that from shore and that is our main concern,” Johnson told a crowd of about 100 people at the Kenai Peninsula Economic Development District’s annual outlook forum, according to a Jan. 10 article in the Clarion. “However, we also know that getting gas developed takes a long time and Cook Inlet is going to need gas within a few years.”

Toward the end of 2014, WesPac Midstream proposed a two-phase liquefied natural gas project at Port MacKenzie. The first phase would involve a small-scale plant processing 25 million cubic feet per day of Cook Inlet gas for shipment to Alaska communities by rail, truck or boat. The second phase would involve a 150 million cubic foot per day system with tanker-loading facilities for export, in addition to shipments within Alaska.

The partnership could involve two offshore platforms for developing gas resources at Cosmopolitan. BlueCrest is currently development oil from onshore facilities. “What we’re planning to do is design these facilities where the shallow part is (with) WesPac and the deeper part, where the oil lies, is with BlueCrest,” Johnson said. “WesPac would get 100 percent ownership of the gas sands, while BlueCrest will continue to operate them,” he said. Then, at some point, after they’ve reached the minimum terms and get their money back, BlueCrest will come back in and begin owning the gas.”

- Eric Lidji