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THE EXPLORERS 2006 - Brooks Range funded and ready to drill
Q. Full company name?
A. Brooks Range Petroleum Corporation
Q. Based in Alaska?
A. Yes, 1400 West Benson Blvd, Suite 510, Anchorage 99503
Q. Top official based in Alaska?
A. Bo Darrah, president & CEO, BRPC
Q. Fulltime employees in Alaska?
A. Four
Q. Anticipate hiring more employees in the next 12 months?
A. Dependent on exploration discovery this winter
Q. Service companies under contract in Alaska?
A. Nabors, Baker Energy, AES Lynx, Peak, Kuukpik Catering, UIC, Halliburton, Carlile/Kuukpik, Schlumberger, Alaska Frontier, LCMF, Ukpik Telecom, GBR, PowerWell, MI Swaco, Vetco Grey, Mikundra Cottrell, Petroleum Equipment & Services
Q. Outside affiliate or parent?
A. BRPC is a wholly owned subsidiary of Alaska Venture Capital Group LLC (AVCG)
Q. Location of parent company?
A. Wichita, Kansas
Q. Top officer in parent company?
A. Ken Thompson, managing director
Q. Net acreage position in Alaska?
A. AVCG and its joint venture partners — TG World Energy and Ramshorn Investments — currently hold 140,000 gross acres in North Slope leases with AVCG’s net share varying between 20-30 percent on the leases.
Q. Interested in acquiring acreage south of Alaska’s Brooks Range?
A. No
Q. Alaska production in 2005?
A. None
Q. Your Alaska exploration plans for the next year?
A. BRPC will drill two exploration wells on two distinct prospects on their Gwydyr Bay holdings (the company’s first wells in Alaska).
“The current budget also allows for the drilling of a third well during the 2006-07 winter drilling season, possibly a follow-up well to any successful results on one or both of the Gwydyr prospects,” said Bo Darrah, BRPC president and CEO.
The company said that future drilling prospects are being identified from the mapping of 3-D seismic data and that “negotiations are ongoing for the purchase of several trade 2-D and 3-D seismic data sets covering JV prospect areas.”
The joint venture also plans to shoot some new 3-D seismic in the 2006-07 winter season on JV lands to assist in the drilling and evaluation of the Gwydyr wells and to identify new prospects for drilling in the 2007-08 and 2008-09 seasons.
The two previously planned Gwydyr Bay wells will be directionally drilled from two different onshore surface locations to offshore subsurface targets. Access to the drill sites will be by ice roads, and permitting for the drilling activities is well under way.
Q. Seeking investment partners?
A. At this point, we are fully funded for exploration for the next three years. Upon discovery, depending on the discovery size, AVCG may have to obtain additional investment funding for development. Some energy investment firms have voiced interest already when we’re successful.
Q. If there were no capital or access limitations, where would you personally like to see your company drill for oil in Alaska?
A. 1. North Slope NPR-A
2. North Slope foothills
3. 1002 area of ANWR
(in order of importance, with number 1 being the most important)
Q. Obstacles to exploring and developing in these areas now?
A. BRPC and its JV partners first need to have success in the central part of the North Slope to have available cash flow for capital spending in these other areas, particularly NPR-A. Once a gas line begins construction in the mid-term, our company would consider exploration and development in the North Slope foothills for gas and oil. ANWR would be of future interest long-term should land access become available.
Q. Purely speculative question: Funding decisions aside, how high would you like to see your company’s production in Alaska in 10 years?
A. Gross 100,000 barrels per day; net 25,000 barrels per day to BRPC
Q. If you had to guess, where would that production come from?
A. Central North Slope between NPR-A and ANWR with some from NPR-A east
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