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DNR Announces Cook Inlet 2011 Lease Sale

(Anchorage, AK) - The Alaska Department of Natural Resources, Division of Oil and Gas today announced its upcoming annual oil and gas lease sale for Cook Inlet, to be held on June 22, 2011. The sale is being scheduled at this date rather than the usual May time to allow additional time for potential bidders, given the unusual character of some of the leases included in this sale.

Most tracts are offered on the same terms and conditions as in previous sales. However, three tracts within the former Cosmopolitan Unit, located just north of Anchor Point, will have higher minimum bids and rental rates, a shorter lease term, and a work commitment. The tracts will also be bundled, requiring bidders to bid on all three tracts as a package.

Kevin Banks, Division Director, said, "Our decision to offer these tracts under these terms was made after taking into consideration their high value and known potential for oil and gas. It's our intent to encourage quick development of these tracts."

One major reason the three tracts hold greater value is that adjacent leases held by Pioneer Natural Resources hold wells that have encountered hydrocarbons. Another advantage is the tracts’ proximity to infrastructure, including Enstar’s recently constructed gas pipeline and the Sterling Highway, providing access to get oil and gas to market.

Bids for the Cook Inlet lease sale must be received no later than 4:00 p.m. on June 20, 2011 and bids will be opened at 9:00 a.m. on June 22, 2011 at the Dena’ina Civic and Convention Center located at 600 West Seventh Avenue, Anchorage, Alaska 99501.

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