Armstrong Resources LLC of Denver, Colo., has begun permitting discussions with the state to drill in the 2003 winter season on its acreage in the Beaufort Sea south and west of Thetis Island. Access will be by sea ice roads from the Oliktok Point dock.
The Armstrong oil and gas leases are offshore north and west of the Kuparuk River unit.
Armstrong said as many as three wells will be drilled and tested. Plans are to plug and abandon all wells prior to March 15, based on a Jan. 20 spud date at the first location.
Ice road construction would begin at the Oliktok Point dock, heading southwest along the shore for approximately three miles and then turn due west three miles to Location No. 3, continue northwest two miles to Location No. 1 and straight north to Location No. 2.
The company said ice roads and drill pads will be built up using seawater until grounded ice is obtained. Approximately 10 miles of ice roads will be constructed beginning as early as Dec. 1, depending on the weather. All sea ice operations would be complete by March 22.
Armstrong acquired its tracts in Harrison Bay west of Oliktok Point at the state's Beaufort Sea areawide oil and gas lease sale in October, bidding some $4.2 million and taking 10 of 12 leases on which it bid. The company bid $316.39 an acre for tract 378, the highest per-acre bid in the sale.
Armstrong's Location No. 1 is in the southwest quarter of section 7, township 13 north, range 8 east, Umiat Meridian; No. 2 is in the northwest quarter of section 31-T14N-R8E, UM; No. 3 is in the northwest quarter of section 16-T13N-R8E, UM.