The Alaska Division of Oil and Gas received eight bids covering 21,268 acres and totaling $451,595 in bonus bids from three bidders, according to preliminary results from the 2021 Cook Inlet Areawide oil and gas lease sale. The division did not receive bids in the 2021 Alaska Peninsula Areawide lease sale, which was concurrently held with the Cook Inlet Areawide sale. There were three new bidders. They include Furie Operating Alaska, LLC; HEX LLC; and Strong Energy Resources LLC.
Sean Clifton, Policy and Program Specialist at the Alaska Division of Oil and Gas:
“These lease sales are held every spring. This is not unusual or out of the ordinary. The only thing that was perhaps different this time around was this is the first time in about six years, maybe seven, that we have had multiple bidders participating in the lease sale. That shows us that there may be some new interest in developing some of our unleased acreage.”
Clifton speaks on what happens next:
“Once these leases are received successful bids, there’s a vetting process before they are issued to the purchaser, the bidder, and then once they have secured the lease, then they have ten years to conduct their research and consider permitting for exploration operations.”
Furie Operating Alaska is the established producing operator of the Kitchen Lights unit in the northern Cook Inlet. Hex recently acquired majority working interest in Furie and is a new bidder. Strong Energy is a new entrant in the Cook Inlet region. All of the lease sale tracts receiving bids had been leased in the past and are located near existing oil and gas development. Existing information and proximity to infrastructure will enhance new exploration and development potential for these tracts.
Gov. Mike Dunleavy:
“Natural gas from Cook Inlet plays an important role in keeping Alaskans’ homes and businesses warm, and keeping Alaskans employed and productive. The success of this lease sale demonstrates the continued contribution of the energy industry to Alaska’s economy and way of life.”
DNR Deputy Commissioner Sara Longan:
“It is gratifying to see this renewed bid activity in Cook Inlet lease sales from both established operators and new entrants. This is further evidence the division is doing a good job at conducting regular, predictable lease sales, and that the industry is responding well.”
Following adjudication, the leases will be awarded to successful bidders to explore and potential develop the leases during a 10-year lease term.