Inside Alaska Business.

• Author: Anderson, Tasha

January 2018

DOYON

Doyon, Limited intends to drill a new oil and gas exploration well in the Nenana basin west of Fairbanks this summer. The well, to be called Totchaket #1, will be drilled on one of several promising areas identified from a 64-square-mile 3D seismic program conducted in 2017. Prior drilling by Doyon in the basin demonstrated the presence of both natural gas and oil, although those results were not commercial. According to Doyon President and CEO Aaron Schutt, "We are especially excited about the recent seismic results because for the first time in this basin we see trapped hydrocarbons. This could be a game-changer."

James Mery, Doyon senior vice president of lands and natural resources, said that the Doyon Nunivak #2 well drilled in 2013 encountered several hundred feet of propane rich, gas saturated sandstone. However, the trap holding the gas had apparently failed millions of years ago resulting in leaks that lowered saturation to levels that could not be produced economically. Had the trap not failed, the Doyon team believes that approximately 150 BCF to 180 BCF of natural gas could have been produced, which is enough to supply Fairbanks for more than twenty-five years. If Totchaket #1 is a success, Doyon estimates that similar amounts of gas could be present. doyon.com

NANA

NANA sold four Anchorage hotels, effective November 2017. The new owner, JL Properties, is an Alaska-based real estate and investment firm. NANA (60 percent owner) and Sodexo (40 percent owner) sold the jointly-owned Courtyard, Midtown Springhill Suites, and Residence Inn, as well as the University Lake Springhill Suites, which was owned 100 percent by NANA. NANA Management Services managed and operated the properties since they opened their doors.

The sale is designed to allow NANA to concentrate on furthering Alaska's resource development industries, including the Red Dog Mine, and its federal and commercial group opportunities. nana.com

BENDERSON DEVELOPMENT

Benderson Development closed on its $89 million purchase of four net-leased properties in Southern California, San Francisco, Seattle, and Alaska. The properties consist of approximately 220,000 square feet and operate under the Safeway, Pavilions, and Carrs supermarket flags:

* Laguna Beach, CA--Pavilions on Pacific Coast Highway

* Berkeley/Oakland, CA--Safeway at College Avenue

** Seattle, WA--Safeway on 134th

* Anchorage, AK--Carrs/Safeway at Abbott

Randy Benderson commented, "This acquisition is consistent with our strategy of acquiring assets in core West Coast markets and further expanding our national footprint." benderson.com

ALASKA AEROSPACE

The Alaska Aerospace Board of Directors approved a resolution adopting Articles of Organization and an Operating Agreement establishing Aurora Launch Services, LLC. As a wholly-owned subsidiary of Alaska Aerospace, Aurora Launch Services is a major step toward creating a cost effective, private sector focused business capable of providing niche contract launch services to spaceports worldwide. As the emerging small launch vehicle market grows, Aurora Launch Services will be a major part of Alaska Aerospace's efforts at creating an Alaska based sustainable aerospace business that serves a global launch market. akaerospace.com

DIVISION OF INSURANCE

Alaska businesses will see an average decrease of 5.4 percent for 2018 workers' compensation insurance assigned risk rates...