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Independent AVCG forms North Slope operating company AVCG creates operator called Brooks Range Petroleum; joins Palm lease with Armstrong in Two Bits prospect Patricia Liles Petroleum News Contributing Writer
The Kansas-based independent Alaska Venture Capital Group has formed a new operating company and has joined its Palm lease with Armstrong Alaska to drill an exploration well this winter.
According to AVCG manager John Jay “Bo” Darrah, the independent formed Brooks Range Petroleum Corp., a Delaware corporation, in May, with plans to develop smaller satellite niches on the North Slope, mostly targeting 50 million-barrel prospects.
“However we have significant positions in two prospects that each exceed 100 million barrels and a third which has up to 90 million barrels of recoverable oil,” he told Petroleum News in August.
Those estimates are based on 3-D seismic that has been completed on about 40,000 acres of the company’s 140,000 acres of holdings on the North Slope. Major blocks held by AVCG include Cronus, which has joint acreage also held by ConocoPhillips; Gwydyr Bay, located near the mouth of the Sakonowyak River (separate from Pioneer’s with the same name); Itkillik River and Ocean Point.
AVCG also holds a four-section lease at Palm, located on the western edge of the Kuparuk River unit, which has a new producing Kuparuk sand well diagonally offsetting its acreage.
In August, AVCG joined its Palm lease with the “Two Bits prospect” held by Armstrong to provide enough acreage to justify drilling an exploration well, Darrah said. Armstrong will be the lead operator on this prospect, which is scheduled to be drilled this winter.
AVCG’s remaining prospects are in various stages of evaluation, Darrah said. Working with ASRC Energy Services The company opened an office in Anchorage in January, staffed by AVCG’s primary managers Edger Dunne and Bo Darrah, as well as Bart Armfield. In addition to this land and exploration office, Brooks Range Petroleum is working closely with ASRC Energy Services, its primary field service provider.
The eight principal members of AVCG are involved in Brooks Range Petroleum.
“Part of the reason for the new company was in order to give us more of a name associated with the North Slope and part was for a corporate structure,” Darrah said.
The independent is increasing its North Slope activity this year and next, through the new company and by working with other independents. “Our goal for 2005 is to drill a minimum of one well and a maximum of three wells,” Darrah said. “Our interest would range in size according to commitments from those funding partners.”
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