Cook Inlet Energy paring down Stingray

ConocoPhillips, ASRC Exploration drop leases near Kuparuk, Cade drops leases near Prudhoe, AVGC drops leases near Sourdough

Eric Lidji

For Petroleum News

Cook Inlet Energy LLC surrendered five leases on the west side of Cook Inlet in February in the area around its proposed Stingray Exploration Program.

The five leases — ADL 390549, ADL 390557, ADL 390556, ADL 390555 and ADL 390551 — hug the shoreline of the West Foreland peninsula near the Trading Bay production facility. The acreage is home to numerous previous wells, including the Cherryville Corp. (a precedent company to Phillips Petroleum) Middle R. State U well, the ARCO Middle R. State U No. 1 and the Shell Middle R. State No. 1. But Cook Inlet Energy is retaining two leases in the vicinity — ADL 390735 and ADL 391608 — that include the Iliamna No. 1 and Iliamna No. 2 wells that Pelican Hill Oil & Gas drilled in 2004, in addition to the proposed location of Cook Inlet Energy’s Stingray No. 1 well.

The local subsidiary of Tennessee-based Miller Petroleum previously described Stingray No. 1 as a 2,000 to 2,500-foot well to “test the gas producing potential of Beluga sands identified in an offset well, the West Foreland State A1, and mapped seismically.”

Also in February, Frederick A. Perner, executor of Patricia A. Bolt, transferred a small royalty interest — less than one half of 1 percent — in three leases at Cook Inlet Energy’s offshore Redoubt unit to the Frederick A. Perner and Patricia A. Bolt Trust.

Escopeta Oil of Alaska LLC allowed one Cook Inlet lease —ADL 391222 — to expire. The lease was contiguous to the eastern boundary of the offshore Kitchen Lights unit.

Buccaneer Alaska LLC transferred a 3.5 percent royalty interest in 58 Cook Inlet leases to Buccaneer Royalties LLC, including leases at its two offshore units — Northwest Cook Inlet and Southern Cross — as well as significant un-unitized leases in the basin.

ConocoPhillips Alaska Inc. allowed five North Slope leases to expire in February. The leases — ADL 390951, ADL 0390985, ADL 390986, ADL 391906 and ADL 391907 are located in the fairway between the Kuparuk River unit proper and its Meltwater satellite.

Also on the North Slope, independent investor Samuel Cade allowed 14 leases scattered between the Prudhoe Bay unit and the Badami unit to expire. AVCG LLC allowed two leases along the boundary of the Arctic National Wildlife Refuge, just south of the Sourdough prospect, to expire. ASRC Exploration LLC allowed one lease —ADL 390978 — to expire. The lease is the location of the Atlas No. 1 well that Phillips Alaska drilled just west of the Kuparuk River unit and its Meltwater satellite in the early 2000s.

Teck American Inc. allowed its four leases at the Sakkan unit to expire. The mining company recently gave up on its attempts to develop shale gas in western Alaska.