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March 28, 2012 --- Vol. 18, No. 23March 2012

DNR grants extension for Kitchen Lights unit

Alaska’s Division of Oil and Gas has granted a four year extension to the term of the Kitchen Lights unit, operated by Furie Operating Alaska LLC. The unit had been due to expire on Jan. 31 of this year but has now been extended to Jan. 31, 2016. Furie had applied for a unit extension on Dec. 5.

Furie, previously Escopeta Oil, brought the Spartan 151 jack-up rig to Cook Inlet last year and started drilling the Kitchen Lights Unit No. 1 well, in the northern part of the inlet. The well reached a depth of 8,805 feet, about half the target depth, before the company had to suspend the drilling for the winter. However, the company announced a significant natural gas find in the Sterling and Beluga formations.

Furie applied for a unit extension, with a four-year exploration plan that involves re-entering and completing the Kitchen Lights No.1 well, and proceeding to drill four or possible five additional exploration wells in the unit. The company says it is also planning to submit a Kitchen Lights plan of development that will involve the installation of a monopod platform for gas production.

“We want Furie to have every opportunity to be a success story at Kitchen Lights unit,” said Division of Oil and Gas Director William Barron when announcing the unit extension. “This agreement gives the company a reasonable timeline to move forward with the exploration and development drilling outlined in the plan of exploration, as well as the incentive to do so. If the company does not meet its exploration or development obligations in a timely manner, the agreement provides for the termination or contraction of the unit acreage.”

—Alan Bailey

See full story in the April 1 issue of Petroleum News, available online Friday, March 30 at 11 a.m. at www.PetroleumNews.com

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