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TG World sells Alaska lease interests Company part of Brooks Range Petroleum Corp.-operated JV on North Slope since 2006; acquired by TVI Pacific Kristen Nelson Petroleum News
TVI Pacific Inc. said Nov. 8 that its wholly owned subsidiary, TG World Energy Inc., is selling its leasehold interests in Alaska for approximately $16 million.
On Nov. 9 TVI Pacific said the transaction to sell all of the company’s leasehold interests in Alaska was complete.
Alaska Division of Oil and Gas records show that TG World had interests totaling 36,088.63 acres in state oil and gas leases.
TG World Energy’s involvement in Alaska began in early 2006 when it partnered with Alaska Venture Capital Group subsidiary Brooks Range Petroleum Corp., taking an interest in most of the oil and gas leases held by BRPC on the North Slope and agreeing to participate in exploration and development. TG World initially had a 35 percent interest in most of the acreage operated by BRPC and participated in exploration at several North Slope prospects, investments which earned the company exploration credits from the State of Alaska.
Troubles in 2008 At the end of 2008, TG World pulled back from exploration expenditures on the North Slope citing global financial uncertainties and low oil prices.
BRPC sued TG World, which countersued. The suit held up exploration and was not settled until late September 2009.
In early 2010, disappointed with the results of an exploration well in the Gwydyr Bay area, TG World relinquished its interests in the Sak River and North Shore prospects and backed out of a future well.
As of January, TG World retained some interest in Beechey Point, but seemed more interested in the North Tarn prospect, where in return for participation in the cost of the first well it was to receive an interest in the leases. TG World also held working interests in the Tofkat prospect west of North Tarn and in the Slugger prospect, south of Point Thomson.
Sale to TVI Pacific In late December of last year TVI Pacific Inc. announced plans to acquire outstanding stock of TG World. TVI is a Calgary-based mining company that shares a senior executive with TG World.
In its Nov. 8 sale announcement TVI Pacific said a portion of the proceeds of the sale would go to a full repayment of the loan facility, a balance of $6.6 million, secured against the assets to TG World. TVI Pacific said the remainder of the proceeds from the transaction would be directed toward its working capital requirements.
Rhonda Bennetto, TVI Pacific’s vice president of investor and corporate relations, told Petroleum News in a Nov. 9 email that TVI couldn’t name the purchaser, but said: “It’s safe to say it’s a party that is very focused and already very active on the North Slope.”
Other partners in the BRPC-operated joint venture include Ramshorn Exploration, a Houston-based private equity company associated with drilling contractor Nabors Industries Inc. and Brooks Range Development Corp., which took over acreage previously held by Bow Valley Energy Ltd. Bow Valley became part of the BRPC-operated joint venture in 2006, but began to reduce its participation in late 2008; it has since been acquired by Dana Petroleum Plc., an independent U.K. exploration and production company based in Aberdeen, Scotland.
Division of Oil and Gas acreage records as of Nov. 7 for acreage held by members of the joint venture show: AVCG LLC, 111,125 acres; Brooks Range Development Corp. (former Bow Valley acreage), 22,654 acres; Ramshorn Investments Inc., 62,175 acres; and TG World Energy Inc., 36,089 acres.
The division had not received paperwork requesting transferring the leases on Nov. 9.
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