Cook Inlet Energy LLC Wins Bid for Iniskin Peninsula Exploration License SW Cook Inlet
Map of Southwest Cook Inlet exploration area.
Alaska Division of Oil and Gas
(Anchorage, AK) – The Alaska Division of Oil and Gas has named Cook Inlet Energy, LLC as the successful bidder for an exploration license encompassing 168,581 acres of state land in the Iniskin Peninsula area of southwest Cook Inlet.
In its bid, Cook Inlet Energy, LLC committed to spending $1,501,000 on exploration over the four-year term of the license.
“We are excited to open a new area of the state for increased oil and gas exploration and look forward to the possibility of new oil and gas opportunities,” said Division of Oil and Gas Director Bill Barron.
State geologists continue to gather and assess information on the resource potential of the region in cooperation with the U.S. Geological Survey. Exploration drilling on the Iniskin Peninsula dates back to 1902, with several shallow holes drilled near oil and gas seeps at the head of Oil Bay and Dry Bay. Geologic mapping of the peninsula by Division of Oil and Gas and Division of Geological and Geophysical Surveys geologists in 2013 has led to an improved understanding of the license area’s structure and stratigraphy.
The exploration license program is intended to encourage exploration in areas outside of state oil and gas lease sale areas, far from existing infrastructure, with relatively low or unknown hydrocarbon potential, and where there is a higher investment risk. If the work commitment is met, Cook Inlet Energy, LLC may convert any portion of the license area non-competitively to oil and gas leases that will have a term of 5 years, royalty rate of 12.5 percent, and rent of $3.00 per acre.
Posted: August 6, 2014