The Alaska Department of Natural Resources has agreed to expand the Pikka unit to include 24 leases along its southern end, according to a recent state lease report.
Armstrong Energy LLC requested the expansion last year to accommodate its drilling plans for the unit. The expansion added 17 leases to the west side of the unit and seven to the east side. The western expansion area will allow Armstrong to drill as many as 62 wells targeting the Nanushuk, Alpine and Kuparuk formations. The eastern expansion area would accommodate as many as 16 wells targeting the Alpine formation.
The expansion was approved retroactive to Nov. 26, 2016.
The company announced a major oil discovery at the unit last year and filed a plan of development in a permit application to the U.S. Army Corps of Engineers in June 2015.
The Corps is currently working on an environmental impact statement for the project.
- Eric Lidji
See story in Feb. 19 issue, available online Friday, Feb. 17 at www.PetroleumNews.com