The US Department of Energy (DOE) has sold the Teapot Dome oilfield to Stranded Oil Resources for $45.2m.
The oilfield, known officially as the Naval Petroleum Reserve Number 3 (NPR-3), is located 35 miles north of Casper, Wyoming.
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Under the terms of the sale, operation and ownership of all NPR-3’s mineral rights and about 9,000 acres of land is transferred to Stranded Oil.
The rest of the surface acreage is due to be transferred in May 2015, bringing the total acres acquired to 9,318.
The Teapot Dome reserve was shut down in 1927 after allegations that Secretary of the Interior Albert Fall leased the field to a private firm in return for $400,000 worth of gifts.
The oilfield was closed until full development restarted in 1976. Jurisdiction for the reserve was transferred from the Navy to the DOE in 1977.
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By GlobalDataIn 1993, the field became the home of the department’s Rocky Mountain Oilfield Testing Center (RMOTC).
RMOTC used the reserve as a commercial testing ground primarily for new technologies and processes designed to improve drilling, oil production, and enhanced oil recovery.
The field produced more than 22 million barrels of oil resulting in over $569m deposited into the US Treasury.
Stranded Oil Resources president and chief executive officer Mark See said: "We are pleased to add NPR-3 to our portfolio, as the purchase is aligned with SORC’s core strategy of acquiring and redeveloping mature oil fields.
"By targeting properties with known characteristics, we reduce the uncertainty and risk generally associated with oil exploration.
"NPR-3 was used for a variety of research and development projects while under the ownership of the U.S. government and the quantity and quality of the data on the field is impressive. We are excited about the opportunity to develop the field under commercial operations."
