Expirations hit Anadarko and others

The end of June brings lease expirations for Anadarko, Eni, Repsol, Devon and AVCG; Pioneer and Pacific Energy make small deals

Eric Lidji

For Petroleum News

The end of June brought the expiration of leases across the North Slope.

Further shrinking its once-epic position in the foothills of the Brooks Range Mountains, 24 Anadarko Petroleum Corp. leases expired at the end of June. The expirations did not include the state, Native and federal acreage where the company drilled its pioneering natural gas exploration wells in 2008 and 2009 across the so-called Gubik Complex.

In July 2010, Anadarko relinquished 61 leases in the southern foothills region, in a remote, rugged area immediately north of the Gates of the Arctic National Park. In March 2011, Anadarko relinquished 30 state leases in the foothills of the Brooks Range.

Farther north, the three remaining leases in the Rock Flour prospect also expired.

Lessee Eni Petroleum picked up the prospect in 2005 when it acquired the North Slope assets of Armstrong Alaska and formed a five-lease unit before the end of that year.

Following up on previous oil shows, the Italian major planned to test whether higher underground temperatures in the area would make the sluggish oil at Rock Flour easier to produce. In its plan of exploration, Eni agreed to drill three wells and run a seismic program. The company ultimately drilled two wells, Rock Flour No. 2 and No. 3, but relinquished the unit in June 2010 rather than completing its other work commitments.

In other expirations at the end of June, Eni also lost one lease — ADL 390614 — adjacent to the northeastern corner of its offshore Nikaitchuq unit in Harrison Bay.

Repsol leases expire

The expirations included three leases — ADL 390952, ADL 390941 and ADL 390942 — in the White Hills region. BP Exploration drilled the Narvaq No. 1 well on ADL 390940 in the winter of 1990-91 and Union Oil Co. of California drilled the Muskoxen 36-7-8 well on ADL 390941 in early 2009. The remaining five leases — ADL 390683, ADL 390684, ADL 390685, ADL 390686 and ADL 390687 — are adjacent to the southern boundary of the Kuparuk River unit and included the ARCO Winter Trail No. 1 well.

The five leases Devon Energy Production Co. LP held in the Beaufort Sea expired at the end of June. The leases — ADL 390609, ADL 390610, ADL 390611, ADL 390612 and ADL 390613 — are in the waters immediately north of the Beechey Point unit.

Although Devon previously held acreage in Alaska through mergers, the Beaufort Sea block represented its first time bidding for state acreage in a lease sale. As a major player in the Canadian Beaufort Sea, Devon saw geologic similarities in Alaska. “It’s just a lead at this point,” Devon landman H.S. “Hank” Radomski told Petroleum News in 2004. “We’re still evaluating data. … Hopefully, we’ll be able to work it into a prospect.”

Devon ultimately chose not to pursue the leases.

Finally, a small Alaska Venture Capital Group lease — ADL 390682 — adjacent to the southwestern corner of its Southern Miluveach unit expired at the end of June.

Point Thomson, others

Pioneer Natural Resources Alaska Inc. transferred a 50 percent working interest and 43.09375 percent royalty interest in one lease to ConocoPhillips Alaska Inc. The lease — ADL 28249 — is wedged into a notch between the Prudhoe Bay and Kuparuk River units, adjacent to the Rock Flour prospect. ConocoPhillips owns the remaining interest.

And in Cook Inlet, the Spielman Family Trust separately transferred three 0.025 percent royalty interests in two Nordaq Energy Inc. leases to independent investors Terry A. Spielman, Linda S. Doupe and Helene M. Dahl, respectively. Nordaq included the two west side leases — ADL 391103 and ADL 391104 — in its proposed Tiger Eye unit.

NOTE: A copyrighted oil and gas lease map from Mapmakers Alaska (www.mapmakersalaska.com) was a research tool used in preparing this story.