MMS to evaluate interest in oil, gas sale in Cook Inlet

By OGJ editors

HOUSTON, Jan. 3 -- The US Minerals Management Service asked energy companies to provide feedback of their exploration interest in the potentially resource-rich federal waters of Cook Inlet, which could provide much needed energy for south-central Alaska.

Cook Inlet Sale 199 is tentatively scheduled for May 2006. It is the second such sale held under the 2002-07 5-Year Plan.

Cook Inlet has the potential to provide a stable supply of energy and fuel for Alaskan residents and industries in Anchorage and the Kenai Peninsula Borough. However, the Federal OCS area in Cook Inlet has remained relatively unexplored since 1984 when the last exploration well was drilled.

MMS is evaluating a package of economic incentives for federal leases in the area.

The MMS lease area covers about 2.5 million acres extending south of Kalgin Island to northwest of Shuyak Island in 30-650 ft of water.. No leasing is proposed in Shelikof Strait.