RE: More media news20 Feb 2021 14:48
14:03
As for access I can only state what I read in the lease terms and that is exclusivity in respect of O & G under the surface but none exclusivity at the surface.
"mitigation measures incorporated in this lease under Paragraph 9, the state and the lessee agree as follows:
1. GRANT. (a) Subject to the provisions in this lease, the state grants and leases to the lessee, without
warranty, the exclusive right to drill for, extract, remove, clean, process, and dispose of oil, gas, and associated
substances in or under the following described tract of land:
containing approximately acres, more or less (referred to in this lease as the "leased area"); the nonexclusive
right to conduct within the leased area geological and geophysical exploration for oil, gas, and associated substances;
and the nonexclusive right to install pipelines and build structures on the leased area to find, produce, save, store, treat,
process, transport, take care of, and market all oil, gas, and associated substances and to house and board employees
in its operations on the leased area. The rights granted by this lease are to be exercised in a manner which will not
unreasonably interfere with the rights of any permittee, lessee or grantee of the state consistent with the principle of
reasonable concurrent uses as set out in Article VIII, Section 8 of the Alaska Constitution"
https://dog.dnr.alaska.gov/Documents/Leasing/SaleDocuments/NorthSlope/2021W/2019-06-28_Lease_Form_DOG201912W.pdf
Because of the auction system if there is success then that will probably mean that at the next auction round there will be more competition , higher prices and less guarantee of getting the leases that you want and that for me is the logic.
Presentation.
"DaveW: The way I look at it is - we have 271,000 acres - which is A LOT for a small company. If anyone wants to get acres to the east and west of us, they’re going to have to come through us. Also, any development is going to have to be built out from the road. So, what’s the NPV of that?? It’s probably not going to be that great?
So - are those acres that attractive the further you get away from the road? There’s a question mark there. Will someone else go in there and pick them up? I don’t know the answer. Is it attractive for us to go in there and bid on them given we’ve got 271,000 acres already? Probably not.
The minimum bid is $25 per acre and that’s pretty close to what we bid on the acres we picked up last year.
PaulB: Like Dave said, if someone comes in and picks up those acres, they gotta come through us, which means they’re doing a deal with us."
http://88ewiki.wikidot.com/presentations:09092016-london-transcript
Sign In
Follow the stocks
