SOURCE: Arctic Oil & Gas Corporation
Arctic Oil & Gas Corp. Acquires 30% Interest in Blake Ridge, Offshore Carolina's Natural Gas Property and Bering Sea Abyssal International Commons Claim
LAS VEGAS, NV--(Marketwire - July 23, 2008) - Arctic Oil & Gas Corp. (
The Company has also acquired a 30% equity interest in a Speculative International Resources Rights Claim in the Bering Sea Abyssal Commons, with seismic identified potential for large resources of immediately developable, clean low CO2 natural gas, along with untested deeper oil potential.
These are speculative tenure situations on large gas resources and it might take some time to perfect a clean enough tenure to proceed with energy development.
These natural gas development projects, when developed might supply as much as 1Tcf gas p.a by pipeline to the Carolinas and up to 20 million tons each per year LNG.
North and South Carolina. Blake Ridge Natural Gas Project, (30% Equity):
Area: 45,000 square kilometers.
This is one of the larger undeveloped clean energy natural gas fields in the world.
The Blake Ridge-Carolina Rise area hydrocarbons in-situ resources have been estimated by various researchers from 10 drill holes and seismic studies to be approximately 2,400 Tcf in-situ. It is estimated to contain a speculative resource of 100 trillion cubic ft of recoverable free gas, which is 18 billion BOE.
These free-gas resources cover an area, which is approximately 25% within the Consortium's International waters Resources Claim and 75% within the US unsolicited OCS lease application.
Economic Geology: Blake Ridge is within the western Atlantic carbonate trend, a Jurassic-Early Cretaceous reef and platform limestone complex that stretches from the Gulf of Mexico to Newfoundland.
Thermally mature sediments have been encountered. Early source rock analyses suggested that Upper Jurassic carbonate reservoirs would more likely contain gas than oil.
-- Thickness of Free-Gas Zone Sediments; 250 meters average.
-- Source Rock: Originally assumed to be biogenic but also possibly from
untested deeper heavier petroleum systems.
-- Trap, Seal: Hydrate Zone, interbedded clays-hydrates above free gas
zone sealed free gas over large areas below.
-- Reservoir porosity: Poor to good in fractured zones.
-- Free Gas Saturation: High.
MARKET CONSIDERATIONS:
Conveniently located 100-200 miles offshore from the South Carolina Coast and America's largest Gas market. Also close enough to Western Europe to deliver LNG economically.
The environmental impact of Blake Ridge gas extraction will be net positive due to the new availability of large quantities of clean, low-CO2 natural gas for electric power generation, enabling the lowering of coal-fired plants CO2 emissions as well as for vehicle use as CNG.
Production Potential: The Consortium plans to eventually deploy a fleet of 6 or more 1,500ft long, floating LNG production vessels on the international Claim portion of the property, each producing 3-4 million tons per year of Clean, low CO2 LNG for US and European markets.
Tenure: The Outer Blake Ridge Commons is an area beyond the US 200nm EEZ line and thus a high-seas enclave outside the jurisdiction of any country.
The Strategic Nine Corporation led Consortium lodged an International Resources Rights Claim dated April 10th, 2008, covering an area located adjacent to the OCS lease application beyond the 200nm EEZ of the US. This is a speculative tenure situation and it might take some time to perfect a clear enough tenure to proceed with energy development.
OCS Lease Application: Approximately 75% of the gas resource the Consortium has Claim to is under US unsolicited OCS Lease Application and falls within the US Atlantic OCS lease moratorium area.
The Consortium is proposing that the government support the International Resources Claim and on the OCS lease application, either
a) Grant a waiver from the moratorium, or b) Commit to granting the OCS lease when the moratorium expires in June 30th, 2012.
There is now considerable public pressure to open up the OCS for drilling due to the high costs of importing energy and the consequential grave risks to America's security and economy.
Bering Sea Abyssal Commons Natural Gas Project, (30% Equity):
-- Area; 200,000 square kilometers;
-- This is possibly one of the larger undeveloped clean energy natural
gas fields.
-- Contains a speculative resource estimate made by USGS geologists, of
approximately 900 Trillion cubic feet (Tcf) in-situ of natural gas and the
possibility of deeper oil resources, with perhaps 100Tcf recoverable free
gas.
Economic Geology: Thousands of gas chimney structures, fueled by warmed source beds in Miocene siliceous deposits, occur in the Aleutian Basin Abyssal. The gas chimneys occur in a flat area of the abyssal plain, comparable in size to Nevada and Utah combined. In addition to known gas resources, there is also oil potential as heavier petroleum sources are thought to be located underneath the gas chimneys.
Production Potential: The Consortium plans to attract partners to eventually build and deploy a fleet of 6 or more 1,500ft long, floating LNG production vessels on the property, each producing 3-4 million tons per year of Clean, low CO2 LNG for US and Asian markets.
Tenure: The Strategic Nine Corporation led Consortium lodged an International Resources Rights Claim dated May 26th, 2008, covering an area located in the Bering Sea Abyssal beyond the 200nm EEZ of any country.
This is a speculative Tenure situation. The Bering Sea Abyssal Commons: Known to fisherman as the "donut hole" it is a portion of the Bering Sea surrounded by the EEZs of Russia and the United States. It lies just off the eastern Bering Sea on the Aleutian Basin. The "donut hole" is essentially a high-seas enclave outside the jurisdiction of any country.
International Waters Claim Has Higher Potential Profit Margins
Management believes that the Outer Blake Ridge International Waters Claim area gas resources and Bering Sea projects could generate higher internal rate of return (IRR) than other LNG projects.
Other Benefits
1. The areas carry lower political risks as there is no regime to
expropriate floating Assets. Freedom of the Seas is one of the most
inviolable Rights in the world today.
2. Most of the LNG and subsea equipment is moveable and can be relocated
to other gas resources when the resource is depleted.
3. Faster development, due to the lack of bureaucratic permitting delays.
4. Operating in international waters eliminates in-country political risk
factors and cuts taxes and other imposts to zero. These are substantial
commercial advantages.
5. Natural resources in the oceans commons have historically been
extracted wherever it is profitable to do so as the lack of any onerous
government resource rent makes a substantial difference in overall
economic returns.
ENERGY MARKET NEED: The worldwide demand for clean energy such as natural gas is increasing geometrically. US domestic gas supply is largely static, despite 90% of US onshore drilling rigs being employed seeking gas.
The Consortium is proposing that the natural gas resources be immediately developed using a mass-produced fleet large floating LNG (FLNG) production vessels.
Share Issues:
-- The Company acquired a Thirty percent interest in the Bering Abyssal
Claim for the issuance of 60 million restricted shares and funding of
agreed future costs.
-- The Company acquired a thirty percent interest in the Bering Sea
Project for the issuance of 60 million restricted shares and funding of 35%
of agreed future costs.
-- The Company issued 103,750,000 shares to satisfy overdue debt owed to
staff, Arctic Claim JV partners and contractors. At the completion of these
issuances the company will have 351 million shares on issue.
-- Due to a heavy workload, Mr. E. Lawson has resigned to pursue his
other business interests.
-- Mr. Kelvin Williams has been appointed to fill the vacancy.
About Arctic Oil & Gas
ARCTIC OCEAN COMMONS CLAIM: In addition to its Blake Ridge, South Carolina and Bering Sea Abyssal Claim projects, Arctic Oil & Gas partners representatives have filed a claim in 1996, with the United Nations General Assembly and the countries of Canada, Russia, United States of America, Norway and Denmark, claiming, as a responsible oil and gas development agent of the "common heritage of mankind," the sole and exclusive exploitation, development, marketing and extraction rights to the oil and gas resources of the seafloor and subsurface contained within the entire Arctic Ocean Common area beyond the exclusive economic zone of the Arctic Ocean's surrounding countries called the "Arctic Claims." (AOAG 30% equity).
USGS geologist Donald Gautier recently estimated that the Arctic holds 100 billion barrels of oil. Another press source reportedly estimated 400 billion barrels potential.
Please visit www.arcticoag.com
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Actual results may differ from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks associated with oil & gas exploration risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, commercial agreements, acquisitions and strategic transactions, government regulation and taxation. More information about factors that potentially could affect AOAG's financial results is included in its filings with the Securities and Exchange Commission.