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Cook Inlet Energy revives Kustatan well Well produces fuel gas for field operations; company and parent Miller invest up to $7 million so far on newly acquired properties Wesley Loy For Petroleum News
Anchorage-based Cook Inlet Energy has restored production from a natural gas well at its Kustatan field.
The KF-1 well, on the west side of Alaska’s Cook Inlet, tested at 70,000 cubic feet per day of initial production, says a July 22 press release from Cook Inlet Energy’s parent company, Miller Energy Resources of Huntsville, Tenn.
The well, which had been shut-in for almost a year, is located along the south plunging West McArthur River unit anticline and is completed as a single selective gas producer in the upper Tyonek sand, Miller said.
“There is always some concern whether or not a well will come back online after being shut-in for an extended period of time,” said Scott M. Boruff, Miller’s chief executive. “This is another example of our continued success in Alaska, as the KF-1 well was brought back into production without a hitch and at twice its historic production rate.”
Cook Inlet Energy and Miller entered the Alaska oil and gas scene in December 2009, acquiring a collection of mostly shut-in Cook Inlet properties from Pacific Energy Resources, a California independent that was undergoing a bankruptcy liquidation.
Production from the KF-1 well previously was used as fuel gas for field operations, and that remains the case now that the well is producing again, David Hall, Cook Inlet Energy chief executive, told Petroleum News.
The gas well is located on a pad with the Kustatan production facility, which was built to generate power and process oil from the offshore Osprey platform, which was among the properties Cook Inlet Energy and Miller acquired.
Busy times Cook Inlet Energy has been busy restoring production from oil wells in its West McArthur River unit. So far in 2010 it has announced successful recompletions of three wells: the WMRU-5 well, the WMRU-6 and the WMRU-1A. The workovers have brought production to more than 1,000 barrels of oil equivalent per day.
Now the company is close to finishing a fourth workover, this one involving the WMRU-7A well, Hall said. The plan is to test the well in a week or two, he said.
To date, Cook Inlet Energy and Miller have spent upwards of $7 million on their Alaska properties, Hall said.
The companies have a lot going on. At a state lease sale on May 26, Cook Inlet Energy was the high bidder on seven Cook Inlet tracts covering an estimated 27,000 acres. The winning bids tallied $908,800.
Miller, which touts itself as “a high growth oil and natural gas exploration, production and drilling company” focused on Cook Inlet and Tennessee’s Appalachian basin, in May saw its shares listed on the tech-heavy NASDAQ exchange.
In recognition of the company’s listing, Miller CEO Boruff was in New York on June 14 to ring the NASDAQ closing bell.
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