Even with oil prices at persistent lows, there are some signs of optimism for the Alaska oil patch in this edition of The Producers. If all goes well, Alaska could have four new producers by this time next year: BlueCrest Energy Inc. at the Cosmopolitan unit, Brooks Range Petroleum Corp. at the Southern Miluveach unit, ExxonMobil Alaska Inc. at the Point Thomson unit and Furie Operating Alaska LLC at the Kitchen Lights unit.
Hilcorp Alaska LLC started its first year as an operator on both the North Slope and Cook Inlet after acquiring a range of properties from BP Exploration (Alaska) Inc. at the end of 2014. The first plans of development to emerge suggest that Hilcorp is taking the same steady yet aggressive approach on the North Slope that it took in Cook Inlet.
ConocoPhillips Alaska Inc. increased drilling at both the Kuparuk River unit and Colville River unit this year and saw a modest slowdown in decline. The company believes it can have a year without declines soon, which would be a first since Alpine came online. Similarly, Caelus Natural Resources Alaska Inc. sanctioned the Nuna development at its Oooguruk project after winning royalty relief from the state. And Eni US Operating Co. Inc. is evaluating several expansion opportunities at Nikaitchuq.
Aurora Gas LLC and the North Slope Borough maintained their steady operations in Cook Inlet and on the North Slope, respectively. The newcomer AIX Energy LLC was quiet but signed some short-term supply agreements, suggesting consistent operations.
The sale to Hilcorp left BP to focus almost exclusively on Prudhoe Bay. Although drilling at the largest field in North America was relatively steady over last year, the company is considering a range of projects, including viscous oil developments in the western end of the unit and projects uncovered through the North Prudhoe seismic program. Unfortunately, some of those projects are cost-sensitive and a little uncertain.
The producer who had the hardest time this year was Miller Energy Resources Ltd., who filed for bankruptcy protection as this edition was going to print. The company had spent months trying to stabilize its financial situation and sell off certain properties.
- Eric Lidji
