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Vol. 19, No. 23 Week of June 08, 2014
Providing coverage of Alaska and northern Canada's oil and gas industry

BlueCrest permitting Cosmo wells, moving toward field development

BlueCrest Energy Inc. is moving forward on developing the Cosmopolitan prospect.

The Forth Worth-based independent recently submitted an Oil Discharge Prevention and Contingency Plan to the Alaska Department of Environmental Conservation. The plan covers “the first season of a multi-year offshore exploratory drilling program,” according to the state, which is taking comments on the contingency plan through June 27.

The proposed plan calls for BlueCrest to drill at least one well each season for several years. Under the terms of a deal to acquire the prospect, BlueCrest agreed to use the Endeavour jack-up rig at the Cosmopolitan field for at least 50 working days each winter for the next three upcoming winters, which would run roughly through April 15, 2016.

The privately held BlueCrest acquired the Cosmopolitan prospect from previous operator Buccaneer Energy Ltd. earlier this year. The two companies had acquired the field from previous operator Pioneer Natural Resources Alaska Inc. in early 2012. Under that deal, BlueCrest had acquired a 75 percent working interest while Buccaneer held the remaining 25 percent working interest and the operatorship. After buying out Buccaneer for some $1.25 million, BlueCrest is now the operator and sole working interest owner of the field.

Cosmopolitan is located off the coast of Anchor Point in the southern Kenai Peninsula.

While previous operators had discovered deeper oil deposits at the field, Buccaneer and BlueCrest announced a shallow oil discovery at the field after drilling the Cosmopolitan No. 1 well last summer. The companies were unable to conduct an oil flow test, but a natural gas flow test produced 7.2 million cubic feet per day, according to the companies.

In late January filings with the Regulatory Commission of Alaska concerning market issues in Cook Inlet, BlueCrest Chief Operating Officer John Martineck said his company was “now finalizing plans to bring the significant reserves of Cosmopolitan to market.”

BlueCrest intends to develop Cosmopolitan through joint onshore and offshore facilities, according to information to company posted on its website. The plan calls for developing the gas reserves using “low-profile gas-only platforms” and the oil reserves using “advanced-technology extended-reach oil wells” drilled from onshore facilities three miles away. While Buccaneer used the Endeavour rig for the Cosmopolitan No. 1 well, Pioneer had used extended reach drilling for its sidetracks and laterals of earlier wells.

- Eric Lidji



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