Saturday, August 18, 2012

State to hold North Slope oil and gas lease sale on Nov. 7

Alaska Journal of Commerce

The Alaska Department of Natural Resources will hold its annual sale of oil and gas lease tracts in the Beaufort Sea, North Slope, and North Slope Foothills on Nov. 7.

The lease sale area encompasses 14.7 million acres, an area the size of Massachusetts, Vermont, and Connecticut combined. The lease sale’s terms and conditions – revised last year to encourage timely exploration and production from state land – remain unchanged from last year. The 2011 lease sale netted more than 300 bids for North Slope and Beaufort tracts, with a total high bid value of $21 million.

“This is a great opportunity to increase investment and responsible resource development in Alaska,” said DNR Natural Resources Commissioner Dan Sullivan. “We will be working hard to promote this lease sale to potential investors,” he said.

The hydrocarbon potential of state, federal, and private lands in the North Slope region – both onshore and offshore – is enormous. Approximately 40 billion barrels of conventional oil and more than 200 trillion cubic feet of conventional natural gas remain untapped, according to federal estimates of undiscovered, technically-recoverable resources. The region also is estimated to contain tens of billions of barrels of unconventional oil – heavy, viscous and shale – and hundreds of trillions of cubic feet of unconventional gas. The U.S. Geological Survey recently estimated that the North Slope’s undiscovered, technically-recoverable shale resources could be as great as 2 billion barrels of oil and 80 trillion cubic feet of gas.

Similar to last year, the state’s Nov. 7 lease sale will include tracts adjacent to federal acreage in the National Petroleum Reserve-Alaska. The Bureau of Land Management oil and gas lease sale is tentatively set for Nov. 7.

Bids must be received no later than Nov. 5 at 4 p.m., Alaska Standard Time. The public bid opening will begin at 9 a.m. on Nov. 7 at the Dena’ina Civic and Convention Center in downtown Anchorage. For more details regarding the lease sale, visit the Division of Oil and Gas website at http://dog.dnr.alaska.gov/.

Read more: http://www.alaskajournal.com/Alaska-Journal-of-Commerce/August-Issue-3-2012/State-to-hold-North-Slope-oil-and-gas-lease-sale-on-Nov-7/#ixzz23wQyE3b6