Spring sales begin May 20, close June 6

Petroleum News

Online bidding for spring state areawide oil and gas lease sales will begin May 20 and close June 6, the Alaska Department of Natural Resources' Division of Oil and Gas said in an April 22 notice of sale, with bidding results available to the public on the division's website at 9 a.m. June 12.

Sales are conducted online for the state by EnergyNet.

Spring sales include Cook Inlet and Alaska Peninsula areawide.

Bids on Alaska Peninsula tracts are cash bonus with fixed royalty, with a minimum bid of $5 per acre and a 12.5% royalty.

Alaska Peninsula areawide leases have a 10-year term. Rental is $1 per acre for year 1; $1.50 per acre for year 2; $2 per acre for year 3; $2.50 per acre for year 4; and $3 per acre for years 5-10.

For the Cook Inlet sale, the bid method is net profit share bidding with a fixed cash bonus. The minimum net profit share bid is 5%; the fixed per-acre cash bonus is $40 per acre. The Cook Inlet leases have a 5-year term, although the division said that under certain conditions the leases may receive a one-time extension. Rental is $1 per acre for year 1; $1.50 per acre for year 2; $2 per acre for year 3; $2.50 per acre for year 4; and $3 per acre for year 5.

--Petroleum News