Qannik, the newest Alpine satellite oil field in the Colville River unit on the western North Slope of Alaska, has gone on line, Natalie Knox Lowman, spokeswoman for unit operator ConocoPhillips, told Petroleum News July 9.
“I can confirm that Qannik came on line July 1, two months ahead of schedule,” Lowman said.
Just one Qannik production well is producing at this point, Lowman said. Initial production rates were unavailable for publication, but ConocoPhillips expects production to peak at 4,000 barrels per day in 2009, she said.
“The (Qannik) design, fabrication and construction involved about 200 people over the past two years and represents about $200 million in capital investment,” Lowman said.
ConocoPhillips’ initial plan for Qannik envisages a total of nine horizontal wells, including an exploration well drilled in 2006. Six wells would be producers and three would be water injectors: horizontal well lengths would range from 6,000 to 9,000 feet. Drilling is taking place from the CD2 drill site, which ConocoPhillips has expanded by 7.5 acres as part of the Qannik field development.
The Qannik startup came on the heels of two essential regulatory documents: the approval of Qannik pool rules by the Alaska Oil and Gas Conservation Commission (issued June 30) and approval of the Qannik participating area by Alaska’s Division of Oil and Gas (issued July 1).
ConocoPhillips owns a 78 percent working interest in the field, with Anadarko Petroleum owning the other 22 percent working interest.
Editor’s note: See the complete story in the July 13 edition of Petroleum News, available online at noon Alaska-time on July 11.