• Forecast
  • News Tip
  • Categories
Temperature Precipitation
Estimated read time
1m 32s

Annual Cook Inlet lease sale draws millions in bids

By Megan Mazurek 3:06 PM May 7, 2014
ANCHORAGE –

The state of Alaska received more than $5.2 million in bids for Cook Inlet oil and gas leases during its annual lease sale Wednesday.

Eight different companies bid on tracts, including Hilcorp, Apache Corporation, Woodstone Resources, Pacific West Energy, Cook Inlet Energy, Nordak Energy, WJ Kennedy and William Crawford. A few of the names are new to the state.

“When we open the bids it’s really the first time any of us see who the bidding partners are,” said Bill Barron, oil and gas division director for the Department of Natural Resources. “And it’s exciting to see who they are and it will now be interesting to see what their plans are.”

Tracts are granted to the highest bidder and have a 10-year term of lease. One 5,120-acre tract in particular received three bids for business from two well known producers — Apache Corporation and Hilcorp — and a newcomer, Texas-based Woodstone Resources. Hilcorp won the bid by $1 per acre.

“Competition is always good, especially in the inlet when you’ve got some pretty key players,” Barron said. “You’ve got Cook Inlet Energy, Apache and Hilcorp and it’s good to see them kind of staging around each other.”

Companies use public seismic data and regional geology to make an educated estimate on the oil and gas reserves before bidding.

“You can see that in some of the bid numbers, in how much dollar per acre, especially when it’s competitive,” Barron said. “Some of these are very close, which means they’re looking at the same data and coming up with some of the same assessments on what the value might be.”

A DNR representative said the state received 43 bids total. There were three bids on three tracts in the Alaska Peninsula; the first since 2007.

The North Slope areawide oil and gas lease sale will take place this fall.

Latest Stories

  • On-Air

    Teacher of the Week: Highlights from the School Year

    by Daybreak Staff on May 22, 12:58

    Over the past school year, Daybreak has highlighted 35 educators for Teacher of the Week, from Palmer to south Anchorage. Here is a look back at all of our teachers’ contributions as they share the secret to their success. In lieu of summer break, our Teacher of the Week segment will begin be back when […]

  • Politics

    Officials who promoted inclusivity seek to bar recall effort

    by Associated Press on May 22, 11:38

    JUNEAU, Alaska (AP) – Three leaders of an Alaska fishing community who sponsored a resolution to promote inclusivity after President Donald Trump’s election have asked a judge to block efforts to recall them. During a court hearing in Anchorage on Monday, Eric Glatt, an attorney for the three Homer City Council members, told Superior Court […]

  • Lifestyle

    Bill Condon will direct 2019 ‘Bride of Frankenstein’ remake

    by Associated Press on May 22, 11:19

    LOS ANGELES (AP) – After helping Disney’s live-action “Beauty and the Beast” spin box office gold, director Bill Condon has been tapped to breathe new life into “Bride of Frankenstein.” Universal Pictures said Monday that Condon’s remake will hit theaters in February 2019, making it the second film in its newly coined “Dark Universe ” […]

  • Lifestyle

    New fruit juice guidelines include big change for babies

    by CBS News on May 22, 11:15

    Kids love their juice, but new recommendations from the American Academy of Pediatrics (AAP) advise parents to pull back on fruit juices of all kinds for children of all ages. It’s the first update to the group’s guidelines on fruit juice for kids in 16 years. One of the biggest changes is the recommendation that […]

  • Lifestyle

    Harvesting Alaska: The Learning Farm is teaching children about farm life, compassion for animals

    by Rachael Penton on May 22, 9:17

    If you’ve got a little one, chances are they’re familiar with our native Alaska wildlife by the time they can talk. However, it may be a different story when it comes to common farm animals. “I’ve brought animals into schools for years and I really found that they know very little about animals, especially farms […]

  • Sports

    Swim, Bike, Run: Gold Nugget Triathlon provides a challenge and inspiration

    by Dave Goldman on May 22, 8:54

    It was damp and cool. At times the rain came down on Sunday morning, too — perfect for a triathlon, as the 2017 Gold Nugget took off and ended in its traditional spot at Bartlett High School. The 500 yard swim in the school’s pool, combined with a 12 mile bike ride and a 4.1 […]

  • NASA orders up urgent spacewalking repairs at space station

    by Associated Press on May 22, 7:29

    CAPE CANAVERAL, Fla. (AP) – NASA has ordered up urgent spacewalking repairs at the International Space Station. On Tuesday, two astronauts will venture out to replace a data relay box that broke over the weekend. The job falls to the two Americans on board: commander Peggy Whitson and Jack Fischer. The failed unit is one […]

  • Man accused of killing girlfriend during suicide attempt arraigned

    by Daniella Rivera on May 22, 7:24

      An Anchorage man accused of killing his girlfriend while attempting to kill himself appeared in court Sunday. A grand jury indicted Victor Sibson, 21, on a charge of second-degree murder. Police responded to a 911 call in at the Club at Eagle Point apartments in Midtown during the early morning hours of April 19, […]