With more than $70 million invested and an expected gross value from oil production of $1.3 billion, lender Alaska Industrial Development and Export Authority is putting the assets of the North Slope Mustang oil field up for sale through a competitive bid process.
AIDEA passed a resolution Aug. 12,.
Alaska Journal | AIDEA board approved foreclosure sale for failed Mustang project alaskajournal.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from alaskajournal.com Daily Mail and Mail on Sunday newspapers.
January 29th |
Leaders of the state development bank now must decide what to do with a failed North Slope oil project in which they have invested $70 million.
The Alaska Industrial Development and Export Authority took control of the Mustang project in December following years of fits and starts by former operator Brooks Range Petroleum Corp. that ultimately led the state-owned authority to foreclose on the project assets.
Approximately a year ago the AIDEA board of directors approved what ended up being the last in a series of amendments to its $70 million total equity investment in Mustang, which had previously been morphed into a loan to Brooks Range s parent companies.
Alaska development bank forecloses on oil field assets after $70 million investment Published January 21
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Print article Leaders of the state development bank now must decide what to do with a failed North Slope oil project in which they have invested $70 million. The Alaska Industrial Development and Export Authority took control of the Mustang project in December following years of fits and starts by former operator Brooks Range Petroleum Corp. that ultimately led the state-owned authority to foreclose on the project assets. Approximately a year ago the AIDEA board of directors approved what ended up being the last in a series of amendments to its $70 million total equity investment in Mustang, which had previously been morphed into a loan to Brooks Range’s parent companies.
Providing coverage of Alaska and northern Canada s oil and gas industry
Oil patch insider: Amaroq sues AOGCC on bonding;
Mustang Holding files 2020 report
Kay Cashman
Petroleum News
According to company President Scott Pfoff, on Dec. 9 Amaroq Resources filed an appeal of a bonding order by the Alaska Oil and Gas Conservation Commission in the Superior Court of Alaska, contending that the agencys Nov. 9 decision exceeds AOGCCs authority by infringing on a constitutionally created department of the State of Alaska.
The small independent oil and gas company says by levying the bond, absent fact finding or the other due process protections that are imposed by the Alaska Administrative Procedure Act, the quasi-judicial agency violated rules governing due process protections and AOGCCs own internal regulations.