World Energy Sees Another Strong Independent Brought to Alaska by Sam Cade and Dan Donkel
Two of Alaska's most active oil and gas Investors Daniel K. Donkel and Dr. Samuel H. Cade are happy to introduce a new independent to the North Slope of Alaska joining a host of world-class oil and gas producers.
Hemi Springs Prospect (Photo: Business Wire)
Donkel/Cade announced today that they have sold roughly 45,760 acres they had under lease from the state of Alaska to Polar Petroleum, a new independent oil and gas exploration and production company. Polar will now join the North Slope oil and gas companies both big and small to help stop the critical decline of the state's oil production.
The acreage is in two of Alaska's hottest new areas, with 40,000 being in the Hemi Springs area and 5,760 acres surrounded by Great Bear Petroleum's very successful oil shale play off the Dalton Highway. Both are located on the oil rich North Slope and near the Trans Alaska Oil Pipeline. The new deal with Polar, included a 20% carried working interest in the first well and 4% overriding royalty along with an undisclosed amount of cash.
With this new sale Donkel has once again proven that Independent Oil and Gas companies can be brought to Alaska and encouraged to develop resources for the state of Alaska.
“I think the significance of this sale cannot be underestimated,” said Dan Donkel. “The reality is that majors have chosen to not increase oil production and the world famous Trans Alaska pipeline is going to be shut down if new oil is not found and produced fast. However, the State Legislators and Governor continue to work to entice companies like Polar Petroleum to drill in Alaska, every Alaskan will feel the pinch if the oil dollars dry up.”
Dan continued, “The election results indicate clearly that the people of Alaska want more oil fast and they want the high paying jobs that come with an oil Boom. I believe this legislature is ready to do the work that must be done to improve the tax regime and to take away some of the harsh rules and unnecessary cost of the current complicated permitting process which has brought oil production to an all time low.”
Dan Donkel has been a fixture in the Alaskan oil and gas business since the mid 1980's when his company Danco sold to Amoco, Arco and Unocal around 100,000 acres in the Cook Inlet, the largest deal in the state's history at the time. Donkel continues to put together quality lease positions on the North Slope for many buyers with the hope of attracting even more oil companies that are ready to drill to the state. In 2009 Donkel was instrumental in saving the Group 1 assets of Pacific Energy Resources and made a deal with the Delaware Bankruptcy Court and Miller Energy / Cook Inlet Energy that saved the Redoubt Oil and Gas Field and W. MacArthur Oil Fields and other assets from abandonments.
In 2010 many news outlets reported Donkel's sale of around 2,000 acres bringing Apache to the Cook Inlet. Donkel and Cade's sales of lease positions in the Cook Inlet tend to be to the independents, like Renaissance now Buccaneer, Alaska Crude, Aurora Gas and others.
According to Donkel the addition of the new tax incentives for new exploration and a positive expected tax change to the ACES program with a new pro development legislature will continue to make Alaska far more attractive. Now with the election done and a new legislative process beginning Donkel thinks we should see the State making the necessary changes that will make even more opportunities available to more independents like Polar and other smaller competitors. Alaska needs to forge a partnership with these independents to stop the massive oil decline on Alaska's oil rich North Slope.
Donkel has shown his commitment to the North Slope by accumulating over 200,000 acres. Now Donkel is looking for oil and gas companies that are ready to get a jump on the competition and buy into the North Slope. Alaska is on the move and with its all Republican Legislature and Republican Governor great things will happen on the North Slope for those that act fast.
Donkel is clearly aware of the reputation that state regulators have given Alaska but according to Dan, the time to dive in is now. If he is reading the tea leaves correctly the legislature will make moves that are positive and companies that move quickly will reap the benefits.
Richard Loomis, 713-626-5369