The company said the sale closed May 31, and that it now owns the rig through a wholly owned subsidiary.

"We are proud to make this investment and ensure the only jack-up rig in Alaska remains drilling in the Cook Inlet," said Luke Saugier, Hilcorp Alaska senior vice president. "This nearly $40 million investment demonstrates Hilcorp Alaska's continued long-term commitment to produce Cook Inlet natural gas for Alsakan homes and businesses."

The company said the purchase ensures that Hilcorp Alaska has access while enabling it to work with other Cook Inlet gas producers to ensure their access. Spartan 151 is a 150 H class independent leg, cantilevered jack-up which can drill to 25,000 feet and operate in water depths up to 151 feet. The rig had been owned by Enterprise Offshore Drilling.

The company said the purchase provides equipment necessary for its Cook Inlet investment program, estimated at nearly a billion dollars over the next five years.

--KRISTEN NELSON

Editor's note: See story in June 9 issue of Petroleum News, available Thursday, June 6, at www.PetroleumNews.com.