State's spring lease sales have begun

Petroleum News

The Alaska Division of Oil and Gas said May 20 that its annual Cook Inlet and Alaska Peninsula areawide oil and gas lease sales have begun. Bidding is open online through the EnergyNet platform until June 5; bid results will be published June 11.

The Cook Inlet leases are offered with a fixed per-acre cash bonus and variable net profit share in lieu of a fixed state royalty. The Alaska Peninsula leases are offered with cash bonus bidding and a fixed 12.5% royalty. There are 727 leases available in Cook Inlet and 1,004 leases in the Alaska Peninsula region.

The division said with net profit share instead of royalty share producers are able to recover costs more quickly, which could make marginal projects more economically viable.

Information on the lease areas is available from state agencies. The Department of Natural Resources' Division of Geological and Geophysical Surveys has well and seismic data available through the state's tax credit program. Public well data can be found through the Alaska Oil and Gas Conservation Commission.

More information is available on the lease sales online at the division's lease sales and best interest finding website: https://dog.dnr.alaska.gov/LeaseSale.

Those wishing to receive sale notices and results releases can sign up for email updates at: http://list.state.ak.us/mailman/listinfo/dog.leasing.

--Petroleum News