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State sets dates for spring lease sales
Petroleum News
The Alaska Department of Natural Resources' Division of Oil and Gas posted tentative dates for two spring lease sales Jan. 16.
The online auction for a spring geothermal lease sale is tentatively scheduled to begin March 25 with EnergyNet, with results tentatively available April 22. The sale includes 24 lease tracts, more than 55,700 acres, at Augustine Island in Cook Inlet.
There is a 10-year primary term, with annual rent of $3 per acre and a fixed royalty on gross revenue of 1.75% during the primary term, increasing to 3.5% of gross revenue after 10 years.
The division said the process for the sale began with a proposal received July 15, 2024. Two proposals were received when the division issued a call for public comments and competing proposals. As there was competitive interest, the area is offered as competitive leases, the division said in a final finding issued Jan. 10.
Cook Inlet oil and gas Online bidding is tentatively scheduled to begin May 12 with EnergyNet for the annual Cook Inlet areawide oil and gas sale, with results tentatively available June 11.
The division said the bid variable is the percent of the lease's net profits after development costs are recovered, with the cash bonus a fixed per-acre amount applied to the size of the lease. The net profit is in lieu of a royalty share.
The division noted that two datasets for Cook Inlet were released in September and November of 2024: North Kenai 2D, covering 200 lines miles onshore and offshore and South Kenai 2D covering 376 line miles onshore and offshore.
Three datasets are scheduled to be released in 2025: Kenai Loop 3D covering onshore and offshore acres at the Cannery Loop unit; Gray Cliff 2D, intersecting North Kenai 2D, north of the Swanson River unit and west of the Kitchen Lights unit; and 2D Deep Creek test, intersecting Deep Creek 3D data released in 2023.
--Petroleum News
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