Greater Point Thomson unit gets conditional approval, large bond

Kay Cashman

Petroleum News

Effective June 25, Alaska's Division of Oil and Gas conditionally approved formation of the Greater Point Thomson unit (GPTU) on and offshore the eastern North Slope adjacent to the Hilcorp-operated Point Thomson unit.

On the east it borders the Arctic National Wildlife Refuge. Working interest owners are Daniel Donkel and Samuel Cade, with Donkel Oil & Gas as unit operator.

Donkel O&G wanted the GPTU to cover 58,790 acres but based upon the division's review the agency reduced acreage to 35,122 acres.

The approved unit includes both western and eastern acreage but excludes unleased state lands and the Bachner/Forsgren acreage because unleased lands cannot be in a unit and Bachner/Forsgren didn't ratify the proposed GPTU agreements.

The division excluded leases that its analysis doesn't show contain a hydrocarbon reservoir/accumulation as required by statute and said Donkel's 5-year exploration plan "fails to show a determined commitment to developing the resources that potentially underlie those leases."

Donkel committed to drill a single well on the western portion of the GPTU.

The division wants two exploration wells drilled; one in the western acreage and one in the eastern. It requires Donkel to post a $2.5 million bond, with half by June 25, 2026, and half by June 25, 2028. Upon completion of the two exploration wells, the $2.5 million bond will be returned to the applicant.

--KAY CASHMAN