Doyon banks on business growth: energy prospects could hold key for future.

• Author: Pounds, Nancy

Doyon Ltd., the Fairbanks-based Native regional corporation, is poised for further strong results from its subsidiaries and envisions successful negotiation of energy projects on Doyon lands.

"I think '06 looks more promising than '05," said Orie Williams, Doyon's president and chief executive officer.

And last year was far from shabby-Doyon posted its 21st consecutive year of profitability, Williams said. The Native corporation also registered $170 million in Alaska revenue last year.

ENERGY PLANS

Two potential resource development projects could yield benefits for the region and Doyon shareholders, Williams said.

Doyon is negotiating a possible land trade with the Department of the Interior U.S. Fish and Wildlife Service in the Yukon Flats area. Doyon would acquire 200,000 acres in the Yukon Flats National Wildlife Refuge with the potential for commercial oil and gas development. In exchange, the federal Interior Department would gain 220,000 acres to be protected from development.

An environment impact statement will be conducted this year, with results available in 2007 or 2008, he said.

Williams asserts the Yukon Flats oil and gas project could be developed safely to continue subsistence hunting in the area. Also, he believes the benefits could help stabilize Doyon's future.

The Native corporation also is pursuing a natural gas prospect in the Nenana Basin, with seismic studies being conducted this year. Results could be delivered by late 2006 or early 2007. Doyon holds 20 percent operating interest in the venture and has royalty rights on the land, he said. Other partners are Andex Resources LLC of Houston, Texas, Arctic Slope Regional Corp. and Usibelli Energy LLC.

Williams describes the Nenana natural gas prospect as a wildcat with high potential.

"We think we have a good prospect of finding commercial grades of gas," he said.

Such results could serve the energy needs of Interior communities, he added.

The 500,000-acre prospect has been studied often, by Union Oil in 1960 and Arco in 1980, so information abounds, he said.

2005 HIGHLIGHTS

Williams outlined some 2005 high points for Doyon subsidiaries.

Doyon Drilling Inc. had its best year ever with five rigs working on the North Slope.

Also, Doyon's investment portfolio climbed to $1,58 million in assets, and Williams is pleased with continuing diversification of the fund.

Tourism's rebound last year also benefited the Native corporation, which operates as joint venture...