BlueCrest, WesPac ink deal to develop Cosmo

BlueCrest Energy plans to resume drilling at the Cosmopolitan oil and gas deposit near Anchor Point this summer, BlueCrest CEO Benjamin Johnson said.

The company, based in Fort Worth, Texas, has signed a Memorandum of Terms with WesPac Midstream LLC to help finance development of gas resources at Cosmopolitan oil.

BlueCrest will move a land drill rig to an onshore pad this spring to begin preparations for drilling high-angle, or deviated, wells to the oil reservoir at Cosmopolitan, which is about three miles offshore. This summer the company also hopes to begin drilling offshore wells into the shallower gas reservoir with a jack-up rig, Johnson said.

WesPac Midstream is working on a medium-sized liquefied natural gas, or LNG, plant at Port MacKenzie, in upper Cook Inlet, with a goal of supplying LNG to Alaska communities and industrial customers.

The company is a “midstream” energy development company specializing in fuels. It is owned principally by a private equity investment fund managed by Oaktree Capital Management, LP. Oaktree is a global investment management firm with more than $93 billion in diversified assets under its management as of Sept. 30, 2014.

The company has substantial experience in the energy, finance and infrastructure industries.

WesPac Midstream is developing liquefied natural gas, or LNG facilities in major market areas in the United States and Canada. The company recently inked a deal to supply LNG to Totem Ocean Trailer Express, TOTE, from a first-of-its-kind LNG fueling facility in Jacksonville, Fla.

TOTE will have two large ocean freight vessels operating between Jacksonville and Puerto Rico which, when completed, will be fueled by LNG from WesPac’s Jacksonville facility by late 2016. TOTE also operates ocean freight service to Alaska from Tacoma, Wash.