Despite a Jan. 24 denial by the state of Alaska’s Division of Oil and Gas for a unit expansion, Brooks Range Petroleum is moving forward with its development of the Southern Miluveach unit, as planned.
“The proposed expansion area would have been a secondary source of production,” company CEO Bart Armfield told Petroleum News Jan. 26 in a phone call from Singapore where the company’s largest investor is based.
“I’m here to discuss whether we’ll appeal the decision or not.”
Brooks Range has 20 days from the date of the expansion denial to appeal the decision with the commissioner of the Department of Natural Resources.
The denial has not curbed the independent’s enthusiasm for its plans to develop the unit, for which the Division of Oil and Gas recently approved a fifth plan of development.
On the right trackArmfield was delighted with November test results from its North Tarn No. 1A well, noting they were “very encouraging … and confirm we are on the right track with our development plans.”
The well test produced light oil (24 API) at 1,292 barrels a day, with proven and probable recoverable oil reserves of 33 million barrels.
Brooks Range has been developing the unit and has already built the Mustang production pad and associated pipeline supports. The company has also had some production modules fabricated. However, technical complications with the development drilling followed by financial issues, triggered by the low oil price, had, until recently, hindered progress and caused delays in completing the work.
Following its successful well test, Brooks Range said that the results confirmed assumptions about the reservoir characteristics and supported parameters used for the production facility design. As a result, development of the oil field would be accelerated, the company announced, with the next phase of development involving the installation of processing facilities and the drilling of up to 18 horizontal production and development wells.
First production early 2019First on the agenda is completion of on-pad piles in the first quarter of this year; installing Canada-built modules by the end of September; and installing Alaska-built modules and connecting pipelines into the Alpine system by the end of 2018.
Brooks Range’s plan also envisages development drilling restarting at the beginning of August.
The plan would lead to first oil from the field in the first quarter of 2019.