Alliance Energy applies to add lease to Unocal’s Cook Inlet Deep Creek unit

Kristen Nelson

Alliance Energy Group LLC has applied to the Alaska Department of Natural Resources Division of Oil and Gas to add a lease to Unocal’s Deep Creek unit. The lease, ADL 390511, contains some 1,116 acres in sections 3 and 4 of township 3 south, range 13 west, Seward Meridian, and lies on the eastern boundary of the unit. Lease ADL 390511 is held 99.275 percent by Alliance Energy and 0.725 percent by NorthStar Energy Group Inc.

The lease expires Sept. 30; the state said Alliance applied for the unit expansion Sept. 16. Alliance told the division that Beluga and Tyonek sandstones are the primary reservoir objectives in the lease. Alliance said it had an evaluation done by Sproule International Ltd., including reprocessing 12 seismic lines and interpretation of those lines and five additional lines and data from North Fork unit wells. “Evaluation of seismic data indicates that a significant portion of the Alliance lease is west and updip to the principal bounding fault on the southeast flank of the structure and thus Alliance’s lease is prospective for Beluga and Tyonek gas on the Deep Creek structure,” Alliance told the division.

The division is accepting comments on the application through Oct. 22 and will issue a decision within 60 days of the close of the comment period.

Unocal is 100 percent working interest owner at Deep Creek southeast of Ninilchik. The state approved the unit at the end of 2001.

Unocal said in November 2003 that it had a gas discovery at Happy Valley in Deep Creek, and the company recently applied for a participating area at Happy Valley and told the state it plans to begin producing gas from the field in November.

Unocal spokeswoman Roxanne Sinz told Petroleum News that Unocal has a copy of the notice of application and will respond during the comment period.

“We have had no communication with Alliance and have not seen their exact proposal,” she said.