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January 2005

Vol. 10, No. 1 Week of January 02, 2005

Pelican Hill permitting two Cook Inlet gas wells

Gas exploration wells two of as many as four company will drill north of Pretty Creek on west side of inlet this summer

Petroleum News

The state of Alaska is reviewing applications from Pelican Hill Oil and Gas for two exploration gas wells north of Pretty Creek on the west side of Cook Inlet. The company told the state that operations at the two sites are expected to begin in January.

The rig is still at the site of the N. Beluga No. 1 exploration well, the first of as many as four wells the company plans on the west side this winter. Wells will be drilled to a depth of 4,500 feet or less and each well is expected to take from 15 to 20 days.

The North Pretty Creek wells will be drilled on state oil and gas lease ADL 390103. Pelican Hill told the state that the Pretty Creek gas field, discovered in 1979, is two miles southwest of the N. Pretty Creek No. 1 and No. 2 wells, both in section 22, township 14 north, range 9 west, Seward Meridian.

A new barge landing near the Beluga River gas field is the primary terminus for freight transportation. Rig components and supplies will be brought to the drill site along the existing road from the Beluga River gas field to the Pretty Creek, Ivan River, Stump and Lewis River gas fields. An airstrip associated with the Beluga River gas field will be used for air traffic except occasional helicopter traffic.

Materials for wells stockpiled

Pelican Hill said that because Cook Inlet is impassible for barges in the winter, most of the expendables for these wells were stockpiled in the Beluga area before the inlet became impassible. Transportation during the winter season will be limited primarily to truck traffic between the Beluga staging area and the well sites, with some traffic from transporting cuttings and used mud to the Envirotech facility at Tyonek. Fuel supply will be by air from Kenai to the Beluga airstrip; there will also be some critical items of small freight flown in to Beluga from either Kenai or Anchorage.

Snow compaction will be used to construct drill pads and staging areas where feasible, Pelican Hill said. Snow will be collected and piled and water will be sprayed on the snow and mixed with it to construct a pad that will support the rig components. The company said it plans to place composite mats on the frozen pads for protection and insulation.

The well sites will be adjacent to existing roads, and will be approximately 200 feet by 200 feet, with supplies staged off the well site in staging areas along the road.

Pelican Hill said the only wintertime use of the road is by Unocal to access Lewis River operations, and said Pelican Hill and Unocal have reached an agreement concerning sharing costs for road maintenance.

Drilling rig self-propelled

The drilling rig is a small self-propelled carrier-mounted rig that was used to drill the Iliamna No. 1 near Trading Bay and is on site at the N. Beluga No. 1 well. The rig can drill to a depth of approximately 7,000 feet while using the casing drilling method. The N. Pretty Creek No. 1 and No. 2 wells are planned to a maximum depth of 4,500 feet. The rig has been modified for drilling shallow gas prospects in the Cook Inlet basin.

The depth to the surface casing at 1,500 feet will be drilled with a conventional bottom hole assembly, the company said, and then top drive equipment will be rigged up and the casing drilling program will begin. Pelican Hill said a top drive mechanism was used successfully at its Iliamna No. 1 well near Trading Bay during the winter of 2003-04, and is in place at the N. Beluga No. 1 well.

Casing drilling uses casing rather than a normal drilling assembly, allowing the operator to cement the casing string in place at the end of the well when drilling operations are complete. Pelican Hill said casing drilling was used successfully at the Iliamna No. 1 well and is being used at the N. Beluga No. 1 well.






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