Caelus credits tax system for Alaska involvement

Jim Musselman, president and CEO of Caelus Energy, and his colleagues only decided to enter the Alaska oil industry after the passage of Senate Bill 21, the law reforming Alaska’s oil production tax system, Casey Sullivan, director of public affairs for Caelus Energy Alaska LLC, told the Resource Development Council’s annual conference on Nov. 19. And, since entering the state, the company has followed up on a commitment to move swiftly ahead with its Alaska program, Sullivan said.

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Caelus aims to unlock vast Torok oil resource

Exploring for oil is never a business for the faint-hearted, particularly when oil prices are at $50 per barrel combined with the risk of ever changing tax policies. It takes a stout heart and plenty of nerve.

Jim Musselman and his team aren’t new, by any means, to exploration and development, and they’re making moves in Alaska.

Caelus Energy, a Dallas-based small independent where Musselman is CEO, has big plans on the North Slope, and Musselman has a big track record. He led the discovery and development of the giant Jubilee field offshore of Ghana when he headed Kosmos Energy, and he believes big discoveries, similar to Jubilee, can still be made on the Slope.

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Caelus Energy Alaska Acquires Majority Ownership in Smith Bay Oil Leases

Caelus Energy Alaska Acquires Majority Ownership in Smith Bay Oil Leases

‘Tulimaniq’ represents highly prospective play – exploration drilling planned for this winter

(June 17, 2015, Anchorage, AK) Caelus Energy Alaska, LLC (‘Caelus’) is pleased to announce the acquisition of a 75 percent working-interest ownership in NordAq Energy Inc.’s Tulimaniq leases located in Smith Bay on the North Slope of Alaska.  Smith Bay is approximately 150 miles west of Prudhoe Bay and is well documented for its extensive hydrocarbon potential.  Slightly more than 117,000 acres (gross), the 26 leases were assigned to Caelus Energy Alaska Smith Bay, LLC a wholly owned subsidiary of Caelus.  As a result, Caelus becomes the operator and will lead the exploration drilling program this winter season.

The agreement, set to be finalized June 18, 2015, follows on the heels of other recent announcements from Caelus including the sanction of its onshore oil development project Nuna, and the acquisition of 323,000 acres in the State of Alaska’s fall lease sale.

Caelus President and CEO James Musselman commented on Caelus’ newest addition to its Alaska portfolio: “We’re extremely excited. The NordAq Energy team has done a great job of defining the geologic potential in Smith Bay.  Our team is ready to take the helm and get to work on exploring and appraising the Tulimaniq play.  What we see in this region has us all pretty motivated.”

“Our winter exploration operation planning is underway. Caelus looks forward to continuing our strong working relationships with the local communities of the North Slope, the North Slope Borough, as well as our state and federal regulatory partners to ensure a smooth transition. We’re also extremely fortunate to be supported in our efforts by North Slope veterans Doyon Drilling and Cruz Construction. The winter exploration operation will require upwards of 400 personnel to drill 1-2 exploration/appraisal wells – it’s a large-scale program” Musselman said,

“Alaska’s current oil fiscal system, including its exploration incentive credits, attracted Caelus to Alaska in 2013 and has been a key component in the company’s recent business decisions,” Musselman emphasized.  “We have a lot of work to do in Alaska. Having a stable policy that encourages finding and producing more oil for Alaska, including credits, will be pivotal in future investments decisions.“

NordAq Energy chief executive officer Paul L. Devine said his company is encouraged by Caelus’ commitment to Alaska and the experience they bring to the project.  “NordAq is very grateful to have a partner of their caliber to operate on our behalf, and commit the energy and capital to a significant play like Tulimaniq.”

“We are also very grateful to CIRI Energy, NordAq’s secured lender, for the role it played in facilitating this important transaction.”  Devine said

 About Caelus Energy Alaska, LLC

Caelus Energy Alaska, LLC (‘Caelus’) is a privately held independent exploration and production company that currently operates the Oooguruk unit on the North Slope of Alaska. The company specializes in exploration, development, and production of oil and gas. Caelus is currently focused on the pursuit, identification, and development of strategic opportunities across Alaska. Caelus prides itself on agility, state-of-the-art strategies and a unique approach to exploration and project development.

Headquartered in Dallas, with an office and operations in Alaska, the team at Caelus has earned a reputation of integrity and innovation, and is a leader in developing world-class operations.

About NordAq Energy Inc.

NordAq Energy Inc. (NordAq) is an independent oil and gas company based in Anchorage, Alaska. The company was established by the present Board and management team in 2008 to explore, appraise and develop hydrocarbon reserves in the State of Alaska. Its portfolio includes prospects and resources in the Kenai Peninsula on the Cook Inlet and Smith Bay on the North Slope.out Nordaq Energy Inc.

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Media Inquiries:

Casey Sullivan,

Caelus Energy Alaska, LLC



Caelus hopes to extract millions of barrels of oil through North Slope fracking

State officials hope North Slope newcomer Caelus Energy Alaska can crack the code on a tricky oil prospect along the Arctic Ocean and lay the groundwork for similar opportunities scattered across the region.

Success at the Nuna field west of Prudhoe Bay, where Caelus will employ fracking techniques developed in the Lower 48 shale boom, could have widespread benefits if lessons learned can be applied to other fields with oil trapped in “tight” rock with little porosity, state officials said.

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Caelus sanctions Nuna development

Caelus Energy has given formal approval for its new $1.5 billion Nuna oil project on the North Slope and has started construction, the company confirmed Friday.

A letter notifying the state Department of Natural Resources of the approval was sent to the agency March 10 to satisfy a requirement of a temporary state royalty modification for the Nuna project.

Gravel mining and hauling for a 2.5-mile access road and 22-acre drillsite began Jan. 25, Caelus Vice President Pat Foley told state Deputy Natural Resources Commissioner Marty Rutherford in the letter.

The road and pad are to be finished this winter, with construction of production facilities planned for next year, company spokesman Casey Sullivan said in an interview.

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