When a sample size is small, it’s best to consider circumstances on a case-by-case basis.
But even in Alaska, where the sample size for exploration is relatively small compared to regions in the Lower 48 and Canada, little trends seem to inevitably emerge each year.
Here are a few themes from this edition of The Explorers.
Accumulate Energy, Great Bear Petroleum and Royale Energy have all been exploring the potential of developing source rocks and have each decided that any unconventional program in Alaska must have an associated conventional program to improve economics.
For many years, Alaska Native corporations only participated in the oil patch as landowners or service providers. Now, Ahtna, ASRC Exploration, Cook Inlet Region Inc. and Doyon Ltd. are all operating exploration programs. The Ahtna and Doyon programs are an attempt to improve the quality of life in their regions by discovering natural gas fields. The ASRC Exploration program is more a conventional search for an oil field on state land. CIRI was initially a landowner in a NordAq exploration program in the Kenai National Wildlife Refuge, but took over after NordAq missed work commitments. Along similar lines, Usibelli has drilled near its mine in an attempt to fuel its operations.
Shell and Apache each suspended their operations in Alaska after years of ambitious exploration goals. Both were victims of external obstacles and poor drilling results. Linc Energy suspended its underground coal gasification program and scaled back the size of its development plans for the Umiat oil field as it searches for potential partners. Miller Energy Resources Inc. was slowed by bankruptcy proceedings much of last year.
Furie Operating Alaska brought the Kitchen Lights unit into production in November 2015 and is proposing a major exploration program for the next few years. BlueCrest Energy expected to bring the Cosmopolitan field into production in April 2016 but is hanging any future exploration activities on the future of the state tax credit program.
Hilcorp proposed its first standalone exploration project in Alaska with the Greystone pad and continued to advance projects at the Deep Creek and Ninilchik units. Aurora ended a long hiatus by proposing considerable exploration work on the west side of Cook Inlet.
Development work seemed to be on hold when Repsol sold a majority stake of its North Slope leases to partner Armstrong, but Armstrong later announced accelerated plans. And Caelus Energy seemed to be reducing Alaska investment when it slowed plans for the Nuna development but instead commissioned a challenging program in Smith Bay.
And finally, ConocoPhillips remained one of the steadiest forces in the state when it announced a two-well exploration program at its Greater Mooses Tooth unit. The company has been consistently exploration the region for more than 15 years.
