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Cook Inlet Energy plans Redoubt restart Plans of development detail work at West McArthur River, Kustatan, Osprey platform, including grind and inject at West McArthur Kristen Nelson Petroleum News
Cook Inlet Energy is hard at work reviving the Cook Inlet properties the company acquired after Pacific Energy Alaska Operations LLC went into bankruptcy in 2009.
The Redoubt unit remains shut-in, its status when Cook Inlet Energy acquired the properties. There has been no production at Redoubt since July 2009.
At West Foreland, the company has two of three wells in production; it has been unable to restart the third well which was shut-in when it took over.
At West McArthur River, CIE has four wells producing and a disposal well in service. A sixth well is not currently producing; the company is dewatering a gas zone.
Plans of development submitted to the Alaska Division of Oil and Gas in January include an amendment to an existing plan for the Redoubt unit and 2011-12 plans for Redoubt, the West McArthur River unit and the Kustatan lease.
The amended 10th plan for Redoubt says that contingent on approval of its plan, CIE plans to initiate final planning, permitting, contracting and ordering of materials for phase 2 of its redevelopment plan in the first quarter of 2011, and begin work at the platform in the second quarter, including mobilizing a drilling rig to the platform followed by redrills of wells in the central and southern fault blocks, including recompleting one well for gas production.
Osprey out of lighthouse Under its first plan of development for Redoubt, the 10th for the unit, CIE submitted a revised Hemlock participating area reflecting automatic contraction; said it had received approvals for a fuel gas purchase agreement and interconnect agreement with the Cook Inlet Gas Gathering System “necessary to prevent possible production limitations in the Hemlock PA due to fuel gas shortages”; finalized its plan for resumption of production from Redoubt; and prepared to implement phase 1 of the Redoubt development plan.
Phase 1 includes bringing the Osprey platform out of lighthouse mode and performing work with a snubbing unit to bring the Redoubt Unit 1 and Redoubt Unit 7 wells back into production.
The 11th plan of development for Redoubt, which covers May 2011 through April 2012, includes completion of phase 1 of the Redoubt redevelopment plan, including: purchasing a platform drilling rig to retrofit or rebuild; bringing the Osprey platform out of lighthouse mode; mobilizing a snubbing unit to the platform; replacing electric submersible pumps at two wells, RU 1 and RU 7, to reestablish production from the central fault block of the Hemlock participating area; reactivating RU 6 for waterflood support for Hemlock PA production; evaluating reentering and recompleting RU 3 as a gas well — this would be a tract operation and if it is successful, CIE would apply for a gas PA; and demobilizing the snubbing unit in preparation for phase 2.
2011-12 plans for Redoubt include mobilizing a coiled-tubing unit to the Osprey platform; cleaning out a disposal well; demobilizing the coiled-tubing unit; and mobilizing a drilling rig to the platform.
The rig would be used to redrill RU 2, RU 4A and RU 5A for production from the central and southern fault blocks of the Hemlock PA.
CIE will also evaluate isolating targeted zones in the RU 6 well to optimize pressure support in productive zones.
If RU 3 is not successfully completed as a gas well, it will be redrilled for oil production from the southern fault block of the Hemlock PA.
The rig would then be deactivated, but would remain on the Osprey platform.
West McArthur River At West McArthur River (an offshore accumulation drilled from West Foreland on the west side of Cook Inlet), CIE successfully worked over WMRU 7A, with completions in the Hemlock PA and a shallower gas zone; attempts to dewater the gas zone continue.
A new zone was perforated in the WMRU 1A well.
CIE elected to lease grind and inject equipment to complete the pad 5 disposal facility.
An onshore drilling pad was completed to support a delineated well from onshore, although CIE did not permit and drill a sidetrack or a new well to a bottom-hole location within the area 1 PA during the 10th plan, but will evaluate plans for that well to access additional reserves under the 11th plan. Subject to rig availability, CIE plans to drill this well no later than April 30, 2013.
CIE will evaluate plans for the WMRU 8 development well to access potential Hemlock accumulations within and outside the current PA and subject to rig availability that well will be drilled no later than April 30, 2013.
At West Foreland, CIE plans to reevaluate West Foreland 1 for further measures to restart production and to permit and drill the WF 3 to access additional gas accumulations.
Kustatan field CIE submitted a fifth lease plan of operations for the Kustatan field last year, proposing to restart production at the field, which was accomplished when the KF 1 well was placed on production.
The well is not currently producing and CIE said well work is under way to identify and bring additional gas sands within the wellbore into production.
In its sixth plan of development for Kustatan field, CIE said it may convert KF 1 back to a disposal well upon depletion of the gas reserves accessed by the well, but will restart production upon completion of current well work and continue production from KF 1 during the term of the sixth plan.
Cook Inlet Energy took over operations on eight State of Alaska oil and gas leases and development of Redoubt Shoal, West McArthur River and West Foreland was a condition the Alaska Department of Natural Resources set in approving assignment of the leases from Pacific Energy to CIE. The November 2009 assignment agreement requires CIE to obtain financing of $5.15 million for work at the West McArthur River unit and $31 million to restore the Redoubt unit to base production.
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