Glacier puts North Slope Badami unit on market
Just when it appeared small independent Glacier Oil & Gas Corp. was here to stay, the company's North Slope Badami field went up for sale.
Asked in early November why Glacier sold its Kenai Peninsula North Fork field, company President Stephen Ratcliff told Petroleum News that Glacier's focus was on the North Slope, particularly on the Badami unit, and selling the Cook Inlet basin gas producing asset to Gardes Holdings helped provide needed capital.
But something is obviously amiss because it appears that on Nov. 16 BMO Capital Markets Energy Group put out a divesture notice claiming it had been retained by Glacier to represent the company in a sale of the Badami unit.
Savant Alaska, a Glacier company, restarted the eastern North Slope Badami pad in October. During the 24 days the field produced that month it yielded more than 2,000 barrels of oil a day, Ratcliff said in early November.
In its Badami asset overview, BMO said it was a turn-key, 100% operated, "cash flow positive asset … with significant exploration and exploitation potential from highly prolific stacked pay reservoirs," in the Badami and Killian sands, producing short of 2,000 barrels of oil a day, although later in the notice BMO said Badami "is currently making 1,250 barrels of oil per day."
BMO also said the "Hilcorp/BP retention of ARO and select plugging obligations limits buyer exposure," noting the Killian sands are "primed for development following" Glacier's B1-07 well.
Questions were referred to Sandra Ramsey at Glacier via [email protected]
- KAY CASHMAN
ConocoPhillips plans to restart North Slope drilling
Today, ConocoPhillips Alaska President Joe Marushack said that in the wake of the defeat of Ballot Measure 1 and a stabilization of oil prices in the $40 range, the company plans to restart drilling projects on the North Slope beginning in mid-December. Marushack made the announcement at the Resource Development Council of Alaska's annual conference.
He cited the defeat of Ballot Measure 1 as the main reason for restarting drilling.
"Since April when COVID-19 caused oil prices to drop and we were facing a potentially large increase in oil taxes, we've had no rigs running in the Prudhoe Bay, Kuparuk River and Colville River units," he said. "But it's now our plan, pending corporate budget approvals, to have three rigs total working in Kuparuk and Colville in the second half of 2021."
The company plans to commission and start up Doyon 26 (the Beast), a new build extended reach drilling rig that will go to work in the Colville River unit. Doyon 26 will begin drilling the Fiord West field from the Alpine CD2 drill site.
Drilling in the Kuparuk River unit would include bringing a coiled tubing drilling rig back to the field, as well as a rotary rig workover program.
In addition to restarting drilling in the Kuparuk River and Colville River units, the company plans to use Doyon 25 to start drilling the Greater Mooses Tooth 2 (GMT2) field in the first half of 2021. Before moving to GMT2, Doyon 25 will drill several wells at the Alpine CD5 drill site before year end 2020.
Marushack also said he is retiring in January after 39 years with the company.
- KAY CASHMAN
See stories in Nov. 22 issue of Petroleum News, available online Friday, Nov. 20 at www.PetroleumNews.com
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