By Yereth Rosen
Alaska Beacon
The state’s annual North Slope oil and gas lease sale drew brisk bidding that was dominated by small independent companies, some of which were new entrants to Alaska, officials reported on Wednesday.
The Division of Oil and Gas said nine companies submitted a combined $16.97 million in high bids for 271 onshore tracts in the central North Slope.
It was the most tracts sold in a North Slope lease sale since the annual areawide leasing program started in 1999, and it was the highest amount of money submitted in high bids since 2014, when 254 North Slope tracts were sold for $39.85 million.
The sale had offered 3,121 tracts over about 5 million state-owned acres.
In a statement, John Crowther, acting commissioner of the Alaska Department of Natural Resources, said the sale results show evidence of a continuing North Slope oil “renaissance.”
“Over the last decade we’ve seen significant exploration, major new discoveries, and more and more acres under lease — and today projects with significant new production are on the verge of coming online. Now we have a record-setting lease sale at the same time we’re heading into one of the busiest construction seasons on the Slope in years. The future is bright,” Crowther said in the statement, which was released by DNR.
Surprise Valley Resources, a Texas-based independent, was the top bidder, picking up 116 tracts for about $8 million in total, according to preliminary results. The company entered Alaska last year, submitting winning bids on 41 tracts in the 2024 areawide North Slope lease sale.
Texas-based Burgundy Xploration, an independent that has previously invested in Alaska, was second on the list, picking up 57 tracts for about $2 million.
Several other small companies acquired tracts in the lease sale, including some newcomers to Alaska: Duncan Resources LLC and Frontier Exploration LLC.
But some established energy companies participated as well.
Oil Search (Alaska) LLC and Repsol were also significant bidders. Repsol, which is based in Spain, picked up 45 tracts in areas south of the Kuparuk River field, according to the preliminary results. Oil Search (Alaska) LLC, which is owned by Australia-based Santos but which is still registered in Alaska as a lease-holding entity under that name, picked up 22 tracts, mostly adjacent to its existing and under-development Horseshoe Unit. Horseshoe is near the Pikka Unit, in which Santos and Repsol are partners.
The Pikka field is expected to start producing oil next spring, a Santos vice president told a conference audience in Anchorage in August. After a first phase of development, with production estimated at 80,000 barrels per day for a few years, a second phase is expected to result in peak production of 120,000 barrels per day, according to Santos, the unit’s operator.
In the DNR statement, Gov. Mike Dunleavy said the Trump administration deserves some of the credit for the successful North Slope lease sale.
“From new Alaska-based explorers to long-established global producers, companies are stepping up because they recognize the tremendous opportunities our state offers. The Trump Administration’s commitment to responsible resource development is helping unlock those opportunities,” Dunleavy said in the statement.
The state’s two other annual Arctic oil and gas lease sales, with results also announced on Wednesday, drew more muted responses.
The Brooks Range Foothills sale, which offered 813 tracts over 4.3 million acres, attracted seven bids for a total of $200,581.92. All were from AK Frontier Energy LLC., another new entrant. The Anchorage-based company was registered Nov. 6.
The Beaufort Sea sale, which offered 570 tracts over 1.7 million state-owned offshore acres, attracted nine bids for a total of $364,346.10. All were from Samuel Cade, an Alaska investor who frequently participates in state lease sales.
Yereth Rosen came to Alaska in 1987 to work for the Anchorage Times. She has been reporting on Alaska news ever since, covering stories ranging from oil spills to sled-dog races. She has reported for Reuters, for the Alaska Dispatch News, for Arctic Today and for other organizations. She covers environmental issues, energy, climate change, natural resources, economic and business news, health, science and Arctic concerns — subjects with a lot of overlap. In her free time, she likes to ski and watch her son’s hockey games.
Alaska Beacon is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.
