Doyon agreement with Hilcorp for Exploration

QUICK FACTS

• Doyon has long been interested in oil and gas potential in the region–beginning when we first selected our lands.

• Doyon signed a series of land selection coordination agreements with villages in the region, which resulted in more lands selected in the Yukon Flats than Doyon and our sister village corporations would have received.

• The Doyon and Hilcorp agreement is for oil and gas exploration of Doyon’s surface and subsurface lands in the Yukon Flats subregion.

• The agreement with Hilcorp includes an initial airborne gravity survey of the region, followed by the opportunity for further exploration in the form of seismic and drilling programs.

RESOURCES

Press Release: Doyon announces agreement with Hilcorp

Fact Sheet: Doyon and Hilcorp agreement fact sheet

Hilcorp Fact Sheet Hilcorp Alaska fact sheet

Newsletter Article: Doyon newsletter article about agreement

Hilcorp Website: Website for Hilcorp Alaska

HISTORY

Doyon’s interest in oil and gas potential in the subregion was highlighted beginning with the selection of ANCSA lands. In 1974, only two years after its incorporation, Doyon signed a series of land selection agreements among Beaver, Fort Yukon, Chalkyitsik, Circle, and Birch Creek village corporations in order to maximize Native-owned lands selections. These agreements resulted in 400,000 extra acres of ANCSA lands in the Yukon Flats. These agreements were signed for potential oil and gas opportunities, and to provide additional Native land for traditional activities.

Land Selections to Maximize Ownership in the Yukon Flats

The map shows the community of Birch Creek without the collaborative effort, and after the collaborative effort.

There were various land selections that required villages to make independent decisions and some requiring collective agreement. These agreements occurred in the mid 1970s for land maximization in the Yukon Flats subregion. Beaver, Fort Yukon, Chalkyitsik, Circle and Birch Creek signed on to coordinate ANCSA land selections with Doyon. Learn more about the land selections HERE.

Exploration History in the Yukon Flats

1970s:
• Texaco exploration on Federal land, not on Doyon lands (2D seismic)

1980s:
• Exxon-Amoco exploration on Doyon and Federal lands (2D seismic)

2000s:
• Doyon land trade efforts with USFWS

2010 – Present:
• Doyon seismic exploration near Stevens Village (2D and 3D seismic)
• Doyon airborne geophysical and lake bed geochemical programs near Stevens Village, Beaver, and Birch Creek

OUTREACH

Doyon visited Birch Creek, Fort Yukon, Beaver, and Stevens Village communities to introduce the project, share information, answer questions, and hear comments and concerns. Doyon will also be visiting several more communities in Spring 2020. Doyon is committed to continued outreach for this project, especially in the Yukon Flats subregion.

Joy Huntington, of Uqaqti Consulting, representing Hilcorp, and Aaron Schutt of Doyon at a community meeting in Birch Creek.

David Buthman of Hilcorp, presenting project information to community of Fort Yukon.

PROJECT OVERVIEW

Map of the Yukon Flats Boundary Map

Hilcorp will be conducting an initial airborne survey in the Yukon Flats subregion to determine the viability of future oil exploration near Birch Creek, Fort Yukon, Beaver, and Stevens Village. The agreement is designed to provide maximum economic benefits to the area. Unlike Doyon’s previous exploration efforts in the Nenana/Minto basin, Doyon will not be the operator nor is Doyon an investor in the program. Below are the first three initial phases of the project.

PHASE 1: Airborne Gravity Surveys and Data Analysis (2020-2021) – Airborne survey of all Doyon surface and subsurface lands in the Yukon Flats. A grid will be flown covering more than the 1.6 million acres of Doyon land to better define opportunities through the measurement of subsurface rock properties. This phase has no ground activity and no land impacts. Areas of interest are near Birch Creek, Fort Yukon, Beaver, and Stevens Village. More information on the airborne gravity survey below.

PHASE 2: Seismic Survey (2022-2023) – This phase is dependent upon the data gathered in the first phase to determine if seismic testing will be conducted in areas of interest.

PHASE 3: Exploration Drilling – Pending the information gathered in the first two phases of the project will determine whether phase three takes place. Area of interest is near Birch Creek.

IMPACTS

Short Term Impacts:

Limited economic and environmental impacts

Potential Long Term Impacts: Dependent upon airborne gravity survey results and decisions to continue exploration

Economic impact/Job opportunities

• Few opportunities for first two years during airborne phase
• Seismic and drilling programs may have seasonal jobs
• Discovery and development are year round employment opportunities
• Contractors are incentivized to recruit and hire locally for all phases of project

Environmental impact

• Each phase of the program has different levels of Federal and State permits
• Cultural sites such as log cabin ruins, caches, cemeteries subsistence camps are avoided and protected
• All operations will follow best management practices to assure proper operating practices

AIRBORNE GRAVITY SURVEY

• A fixed wing aircraft or helicopter, flies in a grid pattern
• Collects data on subsurface
• Data collected is integrated with older seismic data and other information
• May help identify areas for new seismic
• No land impacts

For any questions, please contact:

Doyon, Limited External Affairs Department
info@doyon.com
907-459-2092
1-888-478-4755 ext. 2092

Hilcorp
Lnelson@hilcorp.com
907-777-8300