The Alaska Division of Oil and Gas received 43 bids from companies and investors interested in obtaining state leases during its latest Cook Inlet and Alaska Peninsula oil and gas lease sales. Winning bidders have 10 years to explore and potentially develop the leased acreage. The division received 40 bids from eight bidders on 35 tracts encompassing 114,203 acres in the Cook Inlet sale area. It received three bids from two bidders on three tracts encompassing 10,280 acres in the Alaska Peninsula sale area. Winning bonus bids totaled $5.35 million for the Cook Inlet sale and $51,400 for the Alaska Peninsula sale. "This year's lease sale results show continued optimism among investors about the hydrocarbon resource potential of these two regions, and that state-owned acreage is considered highly prospective for oil and gas development," said Division of Oil and Gas Director Bill Barron. "The sale results also demonstrate continued growth in the market potential for Cook Inlet oil and gas."
Amelia Resources LLC is hosting a data room through Monday (May 19) to market 138,000 net acres in the Tuscaloosa Marine Shale (TMS). "Recent results have created a lot of interest in the TMS play [see Shale Daily, May 12; May 8; April 29; April 14]," said Amelia President Kirk Barrell. "Drill times have greatly improved along with a decrease in associated costs." The parcel being sold is "the only remaining large aggregate block of acreage in the play. We believe that the repeatability and economics of this play will be extremely competitive with other U.S. oil plays." Barrell said, "The initial potentials, production volumes, and decline curves indicate large recoverable reserves in the range of 400-900 million boe. The play economics, consistency of the reservoir, and resulting reserves will make this a very competitive play for years to come."
Devon Energy Corp. and GE Oil & Gas are collaborating on innovations to enhance unconventional oil and natural gas projects. GE launched an Oil & Gas Technology Center in Oklahoma City in 2013 that is set to open its doors in the second half of 2015 (see Daily GPI, April 4, 2013). Under the agreement, Devon, also based in Oklahoma City, and GE said they want to advance innovations for artificial lift systems, advanced drilling technology, and water treatment and processing.
The California Energy Commission (CEC) has approved $5 million in grants for environmental research aimed at improving natural gas efficiency in various industrial applications. As part of its gas research program, the five-member CEC agreed to fund six projects focused on combined heat and power systems and air quality issues associated with renewable natural gas. The funds will support development and demonstration research at Desert Power Inc., Etagen, Cha Corp., and three California universities.
Arlington Gas Storage LLC has received Federal Energy Regulatory Commission (FERC) authorization to construct and operate its Gallery 2 Expansion Project in Schuyler County, NY. The project, an expansion of Arlington's Seneca Lake Storage Project, will convert two interconnected bedded salt caverns previously used for liquefied petroleum gas storage to natural gas storage, increasing the working gas capacity of Seneca Lake from 1.45 Bcf to 2.00 Bcf. The FERC order [CP13-83-000] also approved Arlington's request to reaffirm its market-based rate authority. Arlington is a subsidiary of Crestwood Equity Partners LP.