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Anschutz bids $1.42 million for Copper River exploration license Work commitment proposes geological field work; acquiring, reprocessing existing seismic; acquiring new seismic Kristen Nelson PNA News Editor
Anschutz Exploration Corp. of Denver has bid a work commitment of $1,420,000 and paid 20 percent down on a one-time $1-an-acre rental fee for a 398,445 acre exploration license in the Copper River basin.
Patrick Coughlin, deputy director, and Jim Hansen, lease sales manager, for the Department of Natural Resources Division of Oil and Gas, said at the opening Aug. 25 that another company, Mon-Oil Inc. of Calgary, had proposed an exploration license for the Copper River basin. The state’s exploration license program requires that after a proposal is received the state both evaluate the proposal received and request other bids. Anschutz submitted a proposal following the state’s request. The state completed its best interest finding in July and both companies were invited to submit final sealed bids.
Had both companies submitted final bids, the statute enacting the program provided that the company submitting the highest bid would receive the license. Fieldwork first step The Anschutz proposal is work spread over four years. In the first year, the company is proposing to conduct geological field work, mapping, sedimentology, stratigraphy, source rock sampling and geochemical modeling with a work value of $150,000.
In the second year, Anschutz said it would license and reprocess existing seismic data for the area, also estimated at $150,000.
The third year, with a value of $120,000, includes collection, processing and interpretation of gravity data.
In the fourth year the company would spend $1 million for new seismic data acquisition, processing and interpretation.
The program requires bonding of 20 percent of the work commitment, with the bond reassessed each year and reduced by the amount of work completed. This year’s bond amount is $284,000.
Anschutz holds no acreage in Alaska, although the company bid unsuccessfully on a single tract in the 1999 Cook Inlet areawide oil and gas lease sale. Area west from Glennallen The Copper River basin oil and gas exploration license area runs west from Glennallen on either side of the Glenn Highway and includes most of the length of the Lake Louise Road to the north. In the east, the boundary is close to the Richardson Highway. The southern boundary is south of Copper Center.
The Division of Oil and Gas describes the petroleum potential of the basin as low to moderate. Eleven exploration wells have been drilled in the basin, four in the license area.
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