July 02, 2010 --- Vol. 16, No. 55July 2010

Armstrong prepping new wells at North Fork

Armstrong Cook Inlet is proposing to drill two new development wells on the southern Kenai Peninsula, according to Alaska Oil and Gas Conservation Commission files.

The local subsidiary of Denver-based Armstrong Oil and Gas is permitting two gas development wells at the North Fork unit, located ten miles north of the city of Homer.

Armstrong is asking AOGCC for an exemption to spacing guidelines that require wells producing from the same interval to be set more than 3,000 feet apart.

The proposed wells would be located near North Fork Unit No. 34-26, which Armstrong drilled in the summer of 2008 to around 9,000 feet. That well delineated the Tyonek sands originally proven productive more than 40 years ago by Standard Oil of California.

The proposed wells would start near or at the existing well pad, but explore in different directions. NFU No. 14-25 would head east, while NFU No. 32-35 would head south.

ANS June production down 7% from May

Crude oil production on the Alaska North Slope averaged 547,212 barrels per day in June, down 7 percent from a May average of 588,921 bpd.

The largest percent drop was at BP Exploration (Alaska)-operated Lisburne, which averaged only 3,770 bpd in June, down 86.4 percent from a May average of 27,677 bpd.

BP spokesman Steve Rinehart said Lisburne, which has had no production since June 7, is undergoing scheduled maintenance.

Another big drop was at BP-operated Prudhoe Bay, which averaged only 270,696 bpd in June, down from 288,130 bpd in May. Production peaked at 329,900 bpd June 3, dropped as low as 126,230 bpd June 20 during the first scheduled trans-Alaska oil pipeline shutdown of the summer, June 19-20, and ended the month at 231,354 bpd on June 30.

Rinehart didnít provide details, but said BP was in the midst of major scheduled summer maintenance and was working through a number of projects.

Overall the June drop in ANS production was driven by maintenance scheduled around the first trans-Alaska oil pipeline shutdown of the summer, June 19-20.

Editorís note: See stories in July 11 issue, available to subscribers online at noon, Friday, July 9, at

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