#Furie Alaska - Development Region

The Kitchen Lights Unit

The Kitchen Lights Unit is located south of the North Cook Inlet Unit and is in an undeveloped field with natural gas reserves in which the Cook Inlet stretches 180 miles from the Gulf of Alaska to Anchorage in south-central Alaska. Approximately 400,000 people live within the Cook Inlet watershed.

The east coast in the Cook Inlet, Kenai/Nikiski area, has access to gas utility pipelines to support the power and heating needs of Southern Alaska, a liquefied natural gas plant for natural gas exports, a fertilizer plant, and a refinery where crude oil can be sold.

In October 2010, the majority working interest was acquired in the Kitchen Lights Unit (KLU), located in the Cook Inlet, Alaska. These lease rights cover approximately 83,300 acres. In the Summer of 2011, Furie Operating Alaska, LLC brought the first jack-up rig (“Spartan 151”) to the Cook Inlet in 20 years.

5 previous wells have been drilled within the KLU, most notably 2 by Shell in the mid 1960’s and 2 by Arco in the early 1990’s. The wells were exploration wells and did not produce, but had logs and flow tests showing solid natural gas and oil reserves. Currently, there are 16 platforms in the Cook Inlet, the oldest of which was first installed by Shell in 1964. There are also numerous oil and gas pipelines running around and under the Cook Inlet.