NEWS BULLETIN

October 04, 2016 --- Vol. 22, No. 37October 2016

Caelus confirms Smith Bay discovery

Caelus Energy Alaska said in a press release this morning that it has "a significant light oil discovery" at Smith Bay on Alaska's North Slope.

The company said the discovery is based on two wells drilled in early 2016 and 126 square miles of existing 3-D seismic.

Caelus said it is estimating oil in place under its current leases at 6 billion barrels, and said the Smith Bay fan complex may contain upwards of 10 billion barrels of oil in place when adjoining acreage is included.

The company said it expects recovery factors in the range of 30 to 40 percent, with an estimate of 200,000 barrels "light, highly mobile oil" going into the trans-Alaska oil pipeline.

The two wells, Caelus-Tulimaniq No. 1 and step-out Caelus-Tulimaniq No. 2, encountered gross hydrocarbon columns in excess of 1,000 feet, with CT-1 logging 183 feet of net pay and CT-2 logging 223 feet of net pay.

The company said neither well was flow tested, but said "extensive sidewall coring and subsequent lab analysis confirm the presence of reservoir-quality sandstones containing light oil ranging from 40-45 degrees API gravity."

Caelus said it is planning an appraisal program including an appraisal well and new 3-D seismic, but did not provide a date for either the drilling or the seismic.

- Petroleum News

See story in Oct. 9 issue, available online Friday, Oct. 7 at www.PetroleumNews.com


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