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NEWS BULLETIN

January 22, 2020 --- Vol. 26, No.05January 2020

Oil Search Mitquq well intersects 180 feet of Nanushuk pay

Oil Search announced today that it has intersected 180 feet of pay in the Nanushuk reservoir in its Mitquq 1 exploration well, which was spud Dec. 25. The well is at 6,885 feet.

The company is preparing to set intermediate casing before drilling ahead to the Alpine C reservoir, its secondary objective.

As expected, the Nanushuk reservoir interval penetrated by Mitquq 1 is separate from the Pikka development Nanushuk reservoir.

Previously describing the Mitquq prospect as a "high value tieback" to "future Pikka infrastructure," Oil Search said the well is about six miles from the proposed Pikka Nanushuk Development A pad, or ND-A, and approximately 5.5 miles southwest of DS-3S pad in the Kuparuk River unit.

Based on preliminary evaluation of wireline logs with pressure and fluid sample data, the well intersected 197 feet of hydrocarbon pay comprised of 17 feet of net gas pay and 180 feet of oil pay. No water-oil contact was encountered with the Nanushuk interval.

After finishing drilling into the Alpine C reservoir, the well will be sidetracked to re-penetrate and core the Nanushuk reservoir, after which the well will be flow-tested to assess deliverability and to provide a more accurate estimate of pay thickness and commercial viability. Results will be available in March or April, the company said.

Oil Search also said the ice pad and ice road have been completed for drilling the Stirrup 1 exploration well, and the rig is onsite, with drilling expected to start shortly.

Success at the Stirrup prospect, which is close to the Horseshoe Block southwest of the Pikka unit, "could de-risk additional fairways to underpin a possible standalone" Horseshoe development, the company previously said, noting Stirrup is a direct analogue to the Horseshoe 1 Nanushuk discovery.

If time allows, Oil Search said Stirrup 1 will also be flow-tested this winter.

Gravel laying operations have begun in support of the early civil works program for the Pikka project, the company said in today's announcement, noting "excellent progress is being made, with the objective of building the road to the Pikka ND-B well pad so that development drilling may commence in 2021."

This winter's two-well, two-rig exploration program and gravel-laying operations are ahead of schedule, Oil Search said.

- KAY CASHMAN

See full story in the Jan. 26 issue, available online Friday, Jan. 24 at http://www.PetroleumNews.com.

For information on PN's news bulletin service, call 907-522-9469.

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