This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

"The Oil's There"

"To date, at least, the outcome has been very, very, very good," Duncan said.

Accelerate program

Given the results of the testing, Duncan said that his permitting team is now working with the state on a change in plan, to potentially proceed with some long-term production testing of the wells, in hopes of accelerating the shale oil development program.

There is still much work to do "but we're working hard to bring the decision forward, for ourselves and for the state of Alaska, for regional development by as much as a year," Duncan said.

That would move a decision on whether to proceed with a full-scale shale oil development from 2014 to the middle of 2013.

Great Bear has previously said that, if the testing of source rock cores proves successful, it would conduct production tests by drilling and fracturing horizontal lateral wells through the source rocks from the initial vertical wells used for source-rock coring.

Second well

Great Bear is currently drilling its second test well, the Merak No. 1 well, next to the North Slope Haul Road. That well has reached the bottom of the GRZ/HRZ, the shallowest of the North Slope source rock horizons, and on Sept. 19 the drillers took a core sample from that horizon at a depth of about 9,100 feet, Duncan said.

"We'll drill the rest of the section over the coming few weeks," he said.

The Alcor well penetrated all three of the major North Slope source rocks.

Petroleum system model

Duncan said that he had determined what leases to purchase and where to drill test wells using a model of the North Slope petroleum system developed by Schlumberger, based on science done by the U.S. Geological Survey and Stanford University. That model had proved very successful in explaining the mix of oils found in the North Slope oil fields. The model had predicted the locations of "liquids fairways" in the source rocks, and the results so far of Great Bear's drilling have substantiated those predictions, Duncan said, adding that Great Bear is testing all three of the source rock units.

2 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs