November 03, 2004 --- Vol. 10, No. 99November 2004

Pelican Hill’s first Cook Inlet well dry; set to drill four more

Pelican Hill Oil and Gas said Nov. 1 that its first well in the Cook Inlet basin, the Iliamna No. 1, was a dry hole, but Pelican plans to drill as many as four more onshore west Cook Inlet gas exploration wells between mid-November and spring 2005.

The San Clemente, Calif. independent, which bought its first leases in Alaska in 2001, has opened an Anchorage office and hired its local oil and gas consultant, Arlen Ehm, as vice president of its Alaska operations.

Pelican has also hired Jim Rose as operations superintendent.

Iliamna No. 1 was a vertical hole on a state lease onshore at Trading Bay, northwest of the Trading Bay production facility.

Ehm said the company is “mobilizing enough supplies to run all winter for four wells.”

Pelican will be spudding N Beluga No. 1 in the first section north of the ConocoPhillips-operated Beluga River gas field on a Trading Bay Oil and Gas lease in mid-November 2004.

Under Pelican’s farm-in agreement with Trading Bay Oil if the well is spud by Dec. 1, Pelican has “a right to farm in all of the Trading Bay Oil and Gas Pretty Creek leases,” Ehm said.

The Pretty Creek leases encompass all the acreage between Unocal’s Pretty Creek and Lewis River units.

“We’d like to drill two wells there … and then go back and drill a second well at Beluga,” he said, but drilling a second Beluga and Pretty Creek wells are conditional upon the first wells being successful.

October North Slope production up 8.6 percent from September

Alaska North Slope production averaged 961,506 barrels per day in October, up 8.6 percent from September, and production at Alpine hit a new high, reflecting work completed on the first phase of facility expansion.

Endicott production, 22,247 bpd in October, was up 29 percent from a September average of 17,241 bpd. Prudhoe Bay averaged 449,188 bpd in October, up 14.76 percent from a September average of 391,430 bpd. Production at the Kuparuk River field averaged 203,372 bpd in October, up 5.8 percent from a September average of 192,227 bpd.

Alpine averaged 113,350 bpd in October, a new monthly high and up 3.58 percent from a September average of 109,430 bpd. The first phase of facility expansion was completed this summer at Alpine, increasing the field’s capacity to handle produced water, and was expected to increase oil throughput by about 5,000 bpd.

Lisburne averaged 46,672 bpd, up 1.58 percent from a September average of 45,944 bpd.

Milne Point production was nearly flat month-to-month, with an average of 52,287 bpd in October down 0.6 percent from a September average of 52,579 bpd. Northstar had a production drop of 2.49 percent, averaging 74,390 bpd in October vs. 76,291 bpd in September.

Cook Inlet averaged 23,689 bpd in October, down 7.55 percent from a September average of 25,624 bpd.

Editor’s note: See full stories in the Nov. 7 edition of Petroleum News

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