BlueCrest to partner with WesPac for Anchor Point natural gas

  • By Rashah McChesney
  • Saturday, January 10, 2015 11:41pm
  • News

A Texas-based company focused on developing oil resources in the Cook Inlet on Thursday announced plans to partner with California-based WesPac Midstream LLC., to develop natural gas resources in the Cosmopolitan oil and gas prospect near Anchor Point.

BlueCrest Energy Inc., President J. Benjamin Johnson told a crowd of about 100 at the Kenai Peninsula Economic Development District’s annual outlook forum that the partnership would allow the company to develop the gas resources faster than it would have done on its own.

“BlueCrest’s focus initially has been oil. We need to get that well producing, we’re doing that from shore and that is our main concern,” Johnson said. “However, we also know that getting gas developed takes a long time and Cook Inlet is going to need gas within a few years.”

BlueCrest Energy’s plan is to install two gas production plaforms, the first in 2017 and a second in 2017.

This spring BlueCrest hopes to begin drilling from onshore, with a land-based drilling rig, into the deeper oil reservoir at Cosmopolitan and also begin drilling wells from a jack-up rig into the shallower natural gas deposit, Johnson said in an interview.

The company hopes to use the Spartan 151 jack-up rig now under contract to Furie Operating and in winter storage at Port Graham. Furie has been using the rig to explore its Kitchen Lights gas discovery in upper Cook Inlet. Johnson said the estimated gas reserves at Cosmopolitan are confidential, “but they are substantial.”

However, an indication of the resource is that the two production platforms that are planned by BlueCrest would have a capacity to produce 35 million cubic feet of gas per day or 70 million cubic feet per day combined, he said.

WesPac builds and operates fuel terminals and is developing Liquefied Natural Gas (LNG) facilities in several parts of the nation, and plans to build a small or mid-sized LNG facility at Port MacKenzie on upper Cook Inlet to take gas and distribute LNG to Alaskan communities, for fuel.

“They’re going to put it (LNG) in small containers, in barges, on rail cars, in trucks and basically provide a cheap alternative to diesel fuel that most of the communities need,” Johnson said.

Johnson said BlueCrest was approached by WesPac to develop its gas reserves.

“What we’re planning to do is design these facilities where the shallow part is (with) WesPac and the deeper part, where the oil lies, is with BlueCrest,” Johnson said. “WesPac would get 100 percent ownership of the gas sands, while BlueCrest will continue to operate them, he said. Then, at some point, after they’ve reached the minimum terms and get their money back, BlueCrest will; come back in and begin owning the gas.”

The agreement between the two companies is contingent upon a sales arrangement of LNG and sales of the gas itself.

Alaska Journal of Commerce reporter Tim Bradner contributed to this article. Reach Rashah McChesney at rashah.mcchesney@peninsulaclarion.com

More in News

Vehicles are unleaded at the Seward Harbor after being moved from Lowell Point on Sunday, May 22, 2022 in Seward, Alaska. (Photo courtesy Kenai Peninsula Borough Office of Emergency Management)
Lowell Point barge services move 110-plus cars to Seward

The services were covered by the Kenai Peninsula Borough and ended Monday

Anglers fish on the Kenai River on Tuesday, June 29, 2021 in Soldotna, Alaska. (Ashlyn O'Hara/Peninsula Clarion)
Watershed Forum receives matching grant from Conoco

The Kenai Watershed Forum was given a grant from ConocoPhillips to fund… Continue reading

A beach on the eastern side of Cook Inlet is photographed at Clam Gulch, Alaska, in June 2019. The Alaska Board of Fisheries is implementing new shellfish regulations in Cook Inlet. (Peninsula Clarion file)
Fish and Game closes East Cook Inlet razor clam fisheries

The Alaska Department of Fish and Game has closed the Cook Inlet… Continue reading

Anastasia Scollon (left) and Willow King (right) stand in The Goods + Sustainable Grocery and Where it’s At mindful food and drink on Monday, May 16, 2022 in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Sustainable shopping finds new home in Soldotna

The Collective used to operate out of Cook Inletkeeper’s Community Action Studio

The Alaska State Capitol is seen on Wednesday, April 6, 2022. (Peter Segall / Juneau Empire)
Legislature modernizes 40-year-old definition of consent in sexual assault cases

‘Alaska took a gargantuan step forward in updating our laws,’ says deputy attorney general

Project stakeholders cut a ribbon at the Nikiski Shelter of Hope on Friday, May 20, 2022, in Nikiski, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Stakeholders celebrate opening of Nikiski shelter

The shelter officially opened last December

Peter Segall / Juneau Empire
Gov. Mike Dunleavy speaks with reporters Thursday about the state’s budget at the Alaska State Capitol. Dunleavy said lawmakers had sent a complete budget, and that there was no need for a special session.
Dunleavy: No need for special session

Governor calls budget “complete”

A magnet promoting the Alaska Reads Act released sits atop a stack of Alaskan-authored and Alaska-centric books. Lawmakers passed the Alaska Reads Act on the last day of the legislative session, but several members of the House of Representatives were upset with the bill, and the way it was passed. (Ben Hohenstatt / Juneau Empire)
In last-minute move, Legislature passes early reading overhaul

Rural lawmakers push back on Alaska Reads Act

Graduates wait to receive diplomas during Connections Homeschool’s commencement ceremony on Thursday, May 19, 2022, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Connections honors more than 100 graduates

The home-school program held a ceremony Thursday in Soldotna

Most Read