Jan. 17, 1994

Martech plans rebound

By Margaret Bauman

[an error occurred while processing this directive] Alaska Journal of Commerce

Martech USA Inc. is trimming management and reevaluating its bidding procedures, in hopes of emerging from bankruptcy within six months, said Bill Sheffield, chairman and chief executive officer.

"We've got a good company, a lot of good people and the capability of doing good work," said the former Alaska governor, who replaced Ben Tisdale Dec. 29 in the two key executive posts. "I think we can gain back the confidence of the shareholders."

Martech's stock tumbled after an unflattering article on the company appeared in the Wall Street Journal in November. Since Martech filed for Chapter 11 Dec. 19 in U.S. Bankruptcy Court in Anchorage, some 2,500 creditors have filed claims, court records show.

"We have filed a very major and complex case," said Robert L. Ordin, chief counsel for Martech, and himself a former bankruptcy judge. "Before we can formulate a plan which will fairly deal with creditors it will take some time to work out the details of our relationships with our customers and our lenders."

A status hearing is scheduled before Bankruptcy Judge Donald MacDonald Jan. 18 on bankruptcy schedules and statement. Also scheduled is a status conference on the timeframe for Martech to file a plan and disclosure statement and a discussion on procedure for payment of professionals the debtor is obligated to pay, said Michael Mills, local counsel for Martech.

Jan. 17, 1994

BP confirms discovery of North Slope oil field

By Kristen Nelson

For the Journal of Commerce

BP Exploration (Alaska) Inc. has confirmed discovery of a major new North Slope oil field comparable to Niakuk, producible through existing facilities, says outgoing company president Julian Darley.

The Niakuk field, east of Prudhoe Bay, is estimated to contain 50 million recoverable barrels of oil. The Niakuk field is currently being developed, with production expected to begin through the Lisburne facility this year.

Darley's surprise announcement Jan. 10 came as he bid farewell to Anchorage in a luncheon speech to the city's Chamber of Commerce. Darley, president of BP for four years, is transferring back to London where he will head BP Engineering and Research.

The discovery was made at the Cascade exploratory well drilled early in 1993 about 3 miles southeast of Milne Point, west of Prudhoe Bay. Darley described Cascade as an accumulation the size of Niakuk, and said BP is "confident it will be commercial to produce it through Milne."

The Cascade flowed at a rate of 1,720 barrels of oil a day from the Kuparuk Formation, the same zone productive in the Kuparuk and Milne Point fields, BP said in a release. The discovery well was confirmed by a sidetrack drilled from the discovery well. Oil-bearing zones other than the Kuparuk formation have not been tested, the company said.

BP plans to acquire additional three-dimensional seismic data of the discovery area and adjacent leases this winter to further define the discovery and to assist in further development.

- Compiled by Ed Bennett