By Tim Bradner
Alaska Journal of Commerce

Two exploration wells by independent companies are planned this winter for the Matanuska-Susitna Borough north of Anchorage, both targeted at natural gas. Forest Oil Corp. is completing final preparations on a well planned near Middle Lake in the region. A second well is planned near Big Lake by Storm Cat Energy Corp.

Forest Oil said its rig is on location and is rigging up to prepare for drilling, according to operations manager Ted Kramer. The company is using Nabors Alaska Drilling Co. Rig 129 on the project.

Storm Cat is preparing its site during December and plans to begin drilling operations in mid-January, a company spokesman said. The well will be drilled near the location of the BLT exploration well drilled in 1991 by ARCO Alaska Inc. The well had shows of gas. Storm Cat said that while conventional gas is its primary target it will also make an assessment of coal bed methane potential. The well will be drilled through coal seams known to contain gas elsewhere in the area.

Natural gas prices are much lower in Southcentral Alaska than other regions of North America, and have averaged about $3.60 per thousand cubic feet in the last half of 2005, according to data compiled by the state Department of Revenue. Prices in the region are rising, however. Enstar Natural Gas Co., the regional gas utility, says it will pay $6 per thousand cubic feet in 2006, although Enstar buys only part of the region's gas production. Rising prices have encouraged companies like Forest and Storm Cat to do more exploration drilling.

Storm Cat is new to Alaska, but Forest Oil has been active in the state for several years. Forest owns and operates the small Redoubt Shoal oil field in Cook Inlet and is a minority partner with Unocal in several older Cook Inlet oil fields.

Tim Bradner can be reached at

tim.bradner@alaskajournal.com.