AVCG had successful bids on 39,660 acres totaling $836,800, or 26 percent of the total $3.2 million bid at both sales by eight industry bidders or bidding groups.
AVCG dominated the Beaufort Sea Sale and was apparent high bidder ($630,400) on 12 of 13 tracts bid, for 30,700 acres, in state jurisdiction lands in the Beaufort Sea near-shore. Seven of the bids (totaling $311,680 for 17,920 acres) consolidates AVCG's acreage block in their Gwydyr Bay prospects' area. The JV partners plan to drill two wells this winter on their Gwydyr Bay lands from onshore surface locations to distinctly different offshore subsurface targets. A third well may be drilled dependent upon initial wells' results. The other 5 high bids in the Beaufort Sea Sale (totaling $318,720 for 12,800 acres) are in a new area for AVCG, north of the Alpine Field.
In the North Slope Sale, AVCG consolidated acreage surrounding its Titania prospect on the western side of the North Slope in the Colville River area with the purchase of 4 tracts, for 8,960 acres. Total bids in this area were $111,360. The Titania prospect is south of the large 500 million barrel Alpine Field and satellites operated by ConocoPhillips. A 3D seismic shoot is planned in this area potentially this winter with possible exploration drilling in the 2008 drilling winter season.
Operations in the Gwydyr Bay area and the other prospect areas held by AVCG will be managed by Anchorage-based Brooks Range Petroleum Corporation, a wholly-owned subsidiary of AVCG LLC.
AVCG has recently entered into new joint venture agreements which introduce three new companies to Alaskan oil and gas exploration. The new joint venture companies, they are: TG World Energy, Ramshorn Investments, Inc. (a wholly owned subsidiary of Nabors Drilling USA LP), and Bow Valley Alaska Corporation (a wholly owned subsidiary of Bow Valley Energy Ltd.). All of the JV's are expected to exercise their right to acquire their proportionate share of the leasehold acquired by AVCG once the leases are issued by the State of Alaska. The AVCG/TG World Energy/ Ramshorn/ Bow Valley Energy joint venture was formed earlier this year as an exploration strategic alliance covering a large area of mutual interests on the central part of the Alaska North Slope and adjacent near-shore leases in the Beaufort Sea.
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