Late Sept. 2 the Alaska Department of Natural Resources' Division of Oil and Gas posted a public notice saying Shell Offshore Inc. filed an application Aug. 27 to form the West Harrison Bay unit consisting of 18 leases in West Harrison Bay in state waters and two Nikaitchuq North leases farther east in federal waters. The 18 leases, totaling 86,400 acres, are approximately 34 miles northwest of the ConocoPhillips-operated Colville River unit, directly north of Willow and northwest of the Oil Search-operated Pikka unit.
Shell is 100% holder of the leases but expects to bring in a partner in 2021 to share the risks of exploration and possible development, designating its partner as operator.
Shell's West Harrison Bay leases were acquired in 2012 "because prospectivity was recognized in the Brookian and Beaufortian megasequences. The company redirected focus to these leases in 2017 and generated five stand-alone prospects in the Nanushuk formation and multiple leads in both the Torok formation and Jurassic Alpine-like plays," the application said. It was filed by Kyle W. Parker of Holland & Hart on behalf of Stephane Labonte, Shell's exploration manager for Alaska and Canada who is based in Calgary, Alberta.
Forming a unit will hold the 18 leases, which are due to expire in 2022.
The technical risk associated with the West Harrison Bay prospects was "decreased by a string of discoveries in the same play. Starting in 2013 with the (Repsol-Armstrong) Qugruk No. 3 well, efforts in the Nanushuk and similar plays dominated exploration activity on the North Slope."
A unit plan of exploration for leases was attached to the application, asking for a 5-year term given the current uncertain market conditions related to the Covid-19 pandemic and the resulting collapse in oil prices.
In its Harrison Bay exploration plan Shell promised the unit operator will drill its first well in the 2023-24 winter drilling season, and, assuming the success of that well, drill a sidetrack to evaluate the Nanushuk formation.
During 2024, the unit operator will complete another exploration well and possible sidetrack to further evaluate the Nanushuk.
During 2025 after evaluating the results of the completed well(s) Shell said that no later than Dec. 31, 2025, the operator will submit either a further plan of exploration for the West Harrison Bay unit or a plan of development.
Shell's work at West Harrison Bay "started with the creation of a robust regional geological model - extending from the Mackenzie delta area in the east to the Russia/US border in the west - a thorough dry-hole analysis, an analysis of why the Nanushuk was overlooked for so long, and investigations into the petroleum systems that could yield light oil at anomalously shallow depths," Shell said.
- KAY CASHMAN
See story in Sept. 6 issue of Petroleum News, available online Friday, Sept. 4 at www.PetroleumNews.com
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