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December 2017

Vol. 22, No. 49 Week of December 03, 2017

State OKs BlueCrest’s Cosmo drilling plan

Kristen Nelson

Petroleum News

The Alaska Division of Oil and Gas has approved BlueCrest Alaska Operating LLC’s fourth plan of development for the Cook Inlet Cosmopolitan unit. The division received the 4th POD for Cosmopolitan in late September (see story in Oct. 8 issue of Petroleum News) and approved the plan Nov. 28.

For the 4th POD period, which covers 2018, BlueCrest plans to drill at least one new well or sidetrack and evaluate production of the H14 and H16 wells drilled in 2016.

The company’s plan for the 3rd POD, which covered this year, was to drill up to five onshore wells or laterals from the Hansen onshore pad. The company said that during the 3rd POD it completed construction of the BlueCrest Rig No. 1 at the Hansen Production Facility. “We currently have the largest most powerful operating rig in Alaska,” BlueCrest said.

Under the 3rd POD BlueCrest spud the H16 well Nov. 29, 2016, and successfully drilled it to 22,810 feet measured depth. The rig was released to move to the H14 lower lateral well March 11.

BlueCrest completed a frack job on the H16 well and began production, which in September was 330 barrels per day from that well.

The H14 lower lateral was spud March 22 and completed May 13 at a depth of 23,415 feet MD but the company ran into difficulties setting liner and ultimately drilled three sidetracks before completing the well to 22,300 feet MD in September.

BlueCrest had planned to drill as many as five oil production wells or laterals as part of the 3rd POD and did drill two wells and three laterals, although only two were productive.

4th POD

In its approval letter for the 4th POD the division said that as of June the Cosmopolitan unit has produced 111,000 barrels of oil and 16,422 thousand cubic feet of natural gas, with 2016 average production of some 136 barrels of oil and 439 mcf of natural gas per day.

BlueCrest said it will need some revisions to an approved permit to drill for the H12 because of changes to the completion package, and plans to file for drilling permits for the H16 upper lateral and H16 exploratory lateral late this year or in early 2018.

BlueCrest will also be evaluating results of the H14 lower lateral and H16 lower lateral, both targeted to the Hemlock, in determining its path forward.

The company said it would like to drill and complete a test of the Starichkof zone, and said that prior to completing evaluation of wells drilled this year it believes the H16 upper lateral into the Starichkof zone is the best candidate.

“Given the complexity of the well completions, it is reasonable for BlueCrest to carefully evaluate its well design and drilling and completion techniques before drilling the next well,” the division said in approving the 4th POD.






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