Could Alaska’s North Slope be the Next Big U.S. Shale Oil Discovery?

Michael Teague  |

Ed Duncan is a petroleum geologist and president and CEO of Great Bear Petroleum LLC., a private company based in Alaska that focuses on unconventional resources on the North Slope of Alaska, particularly shale-based oil and gas.

In an article published in Environment and Energy Publishing LLC, “the leading source for comprehensive, daily coverage of environmental and energy policy and markets”, that was then reprinted in a press release by Royale Energy Inc. (ROYL), Duncan touted the difficult geology of the North Slope as the next major unconventional American oil play, similar to the Eagle Ford field in Texas and the Bakken shale fields in North Dakota.

In 2010, Duncan bought 500,000 acres of state land leases in areas of the North Slope in which the giant energy companies had long been disinterested. In 2011, he testified before the Alaska legislature that the fields covered in his leases alone would produce 200,000 barrels of crude per day in less than ten years’ time.

Initial drilling began in 2012, with Great Bear owning 75 percent of the project and Halliburton (HAL), responsible for the actual drilling, taking a 25 percent stake.

Royale Energy, a San Diego-based independent oil and natural gas producer with a market cap of $24.46 million, has bought 100,000 acres. Royale was one of the few oil stocks to perform not only well but incredibly well on Wednesday, leaping 8.96 percent to $2.19 by the close.

ConocoPhillips (COP) has also decided to get in on the action with a smaller set of leases than Royale’s. Its shares, however, were part of Wednesday’s basic materials underperformers, losing 1.27 percent to close at $59.28.

Halliburton dropped 2.86 percent, ending the day at $38.75.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
COP ConocoPhillips 64.55 -1.58 -2.39 6,445,868 Trade
ROYL Royale Energy Funds Inc - Ordinary Shares 0.17 0.00 0.53 2,400
HAL Halliburton Company 29.00 -0.91 -3.04 17,021,082 Trade

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