 Beaufort Sea and North Slope Areawide October 28, 2004 Alaska Commissioner of Natural Resources Tom Irwin announced Wednesday that the state received $14.8 million in bonus bids for leasing 366,080 acres in its Beaufort Sea and North Slope areawide oil and gas lease sales. The Beaufort Sea lease sale drew the most money of any Beaufort Sea sale since 1997. The Beaufort Sea and North Slope areawide sales are part of the state's ongoing areawide leasing program. "Today's [Wednesday's] sale is a clear indicator that industry sees the state as a viable place to invest. We are following through with commitments made for responsible development of our oil and gas resources," said Governor Frank H. Murkowski. "We have been working hard at encouraging companies to come to Alaska by streamlining the permitting process, lengthening the winter exploration season, and offering tracts of interest to investors." "With today's sales, the state has surpassed $115 million in bonus bids since the program's inception in 1998. I am particularly pleased to see 11 companies participate in today's sale," said Irwin. This participation is proof that the Governor's efforts to encourage oil and gas companies to enter the Alaska market is bringing results." The sale also included 26 tracts offshore of ANWR that had been deferred in previous areawide lease sales. "While the tracts did not receive any bids at this time, I don't believe that is a gauge of long-term interest in the area," said Sean Parnell, Deputy Director of the Division of Oil and Gas. "The lack of facilities and distance to existing infrastructure makes these tracts less attractive in the short-term. However, as development moves further east, such as in the Point Thomson area, the tracts will become more feasible." For Beaufort Sea Areawide 2004, DNR received a total of 28 bids for 28 of the tracts included in this sale for an estimated pre-adjudication bonus bid total of $5.3 million. The tracts receiving bids totaled approximately 125,440 acres which exceeds the combined acreage leased in all four previous Beaufort Sea areawide lease sales. For North Slope Areawide 2004, DNR received a total of 68 bids on 64 of the tracts included in this sale for an estimated pre-adjudication bonus bid total of $9.5 million. The tracts receiving bids totaled approximately 240,640 acres. DO&G should have preliminary sale results available October 28, 2004 following adjudication of the bids. Twenty-five percent of the
state's proceeds from lease sales is deposited into the Permanent
Fund Account. For preliminary sale results, visit the Division of Oil and Gas web site.
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