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March 2008

Vol. 13, No. 10 Week of March 09, 2008

North Slope exploration marches on

Brooks Range announces Tofkat, North Shore results; Chevron moves to second well; Savant expects to spud Kupcake by March 15

Eric Lidji

Petroleum News

With the start of March, exploration drilling continues across the North Slope, but as has been the case all winter, the Brooks Range Petroleum Corp. is supplying most of the news.

Based on initial drilling results, the Brooks Range Petroleum Corp. plans to sidetrack the Tofkat No. 1 well, according to the joint venture running the drilling program.

As operator of the drilling program, BRPC reached a total vertical depth of 7,703 feet on the 13,174-foot Tofkat No. 1 well, located along the eastern shore of the Colville River near the village of Nuiqsut. During the drilling, BRPC came across several zones with “indicated hydrocarbon potential.”

The sidetrack will begin after initial logging and testing of the well.

BRPC, a wholly owned subsidiary of the Alaska Venture Capital Group, is running its winter exploration program on behalf of a joint venture with TG World Energy Corp., the Nabors subsidiary Ramshorn Investments Inc. and Bow Valley Alaska Corp.

“While various tests must be undertaken and the results of those tests analyzed before we are able to draw any conclusions concerning commerciality, we are encouraged with the indications of hydrocarbons noted during the drilling process,” said Clifford M. James, president and CEO of TG World Energy Corp., in a prepared statement.

The joint venture plans to release further information by the end of the month.

The news from Tofkat follows word that BRPC successfully tested the Ivishak formation with the North Shore No. 1 well at a “stable oil flow rate” of 2,092 barrels of oil per day of 34 degree API oil for five hours.

North Shore No. 1 is located in Gwydyr Bay, northwest of the Prudhoe Bay Unit.

BRPC also planned to test the Sag formation from the well, but has not yet because of “mechanical issues down-hole.” The company declined to elaborate.

Chevron finishes Smilodon

Chevron has completed drilling the first well in the White Hills prospect and moved on to the second, according to John Zager, general manager for Chevron in Alaska, who spoke at the state remand hearing over Point Thomson on March 3.

Chevron spud the Smilodon 9-4-9 well on Feb. 2 at the White Hill prospect located in the foothills of the Brooks Range just west of the Dalton Highway.

Chevron hopes to drill eight wells over a two-year program.

Savant Alaska expects to spud soon

On the other side of the central North Slope, Savant Alaska LLC remains well aware of the ides of March, expecting to hit or beat its March 15 deadline for spudding a well at the Kupcake project.

“We’re just about to [spud],” said F. X. O’Keefe, director of business development for the Denver-based Savant Alaska on March 6. “The ice island is almost complete.”

Kupcake sits about six miles east of the Endicott satellite drilling island in the Beaufort Sea, adjacent to the BP Liberty project.

Savant needs to spud the well by March 15 to take advantage of a deal with the Texas-based True North Energy Corp. to gain interest in nearby acreage.

O’Keefe said Savant is “confident” the company will spud the well by then.






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