Successful flow test at Sockeye-2 exploration well
On April 24, APA Corp. (Nasdaq: APA) and its partners Lagniappe Alaska LLC, an Armstrong company, and Oil Search (Alaska) LLC, a subsidiary of Santos Ltd., announced the results of a successful flow testing of the Sockeye-2 exploratory well.
Apache holds a 50% working interest, operator Lagniappe and partner Santos each hold 25% working interests in the 325,411-acre exploratory block located on state lands of the eastern North Slope.
The Sockeye-2 well was successfully drilled to a depth of approximately 10,500 feet and encountered a high-quality Paleocene-aged clastic reservoir with an average porosity of 20%. The vertical Sockeye-2 was completed in a single 25-foot interval at approximately 9,200 feet true vertical depth without stimulation of any kind.
The well performed in line with expectations during the 12-day production test, averaging 2,700 barrels of oil per day during the final flow period, without artificial lift.
The results of the flow test indicate significantly higher reservoir quality compared to similar topset discoveries to the west.
Further appraisal drilling will determine the ultimate size of the discovery, but the flow test demonstrates the exceptional productivity of this shallow-marine reservoir.
"We are excited about the performance from the Sockeye-2 well, which could greatly benefit the state of Alaska and the U.S.," said Bill Armstrong, CEO of Armstrong Oil & Gas. "This discovery significantly extends the prolific Brookian topset play first established with our Pikka discovery in 2013. We have identified analogous anomalies to investigate following on this success."
"The results from the Sockeye-2 flow test are consistent with our expectations, demonstrating high quality reservoir, confirming our geologic and geophysical models and de-risking additional prospectivity in the block. We will evaluate the data from the Sockeye-2 well to determine the next steps in our Alaska program," added John J. Christmann, APA Corp. CEO.
Interview with Bill Armstrong
Petroleum News asked Bill Armstrong as operator to provide more insight on what was said in the APA Corp. and partners press release of the same day, April 24.
Sockeye 2 was drilled on the 325,411-acre Lagniappe exploratory block approximately 10 miles from the Badami oil field and its open access pipeline.
Armstrong said the Sockeye-2 well was "based off of reprocessed 3D seismic. It showed us the same seismic signature that we recognized 94 miles to the west when we discovered the Pikka Field. Our new wildcat came in as mapped," he noted.
"We are especially encouraged by the great reservoir rock. Our average permeability is more than 10-times that of Willow, and 5-times the permeability of the Pikka and Alpine fields," Armstrong said.
"We think it might cover a big area, similar to so many other fields on the North Slope, such as Alpine, Willow, and Pikka. One of the advantages of the North Slope is the lack of structural complexity. It- s that quiescence which lends itself to such large fields." he said.
Armstrong described the Sockeye-2 well as "very old school in its performance, in that there was no stimulation or fracking required. It was completed natural. This new reservoir will be an ideal flood candidate for secondary recovery. The discovery opens up a new portion of the North Slope. It- s a 94-mile eastward extension of the Brookian topset play. That sort of expansion to one of the world- s best oil plays is a really big deal," Armstrong said.
"We still have to apprise this discovery for size and how we would most likely develop it but we are really encouraged by what we have seen," he said.
Armstrong made a point of repeating that the discovery and the entire Lagniappe block is on state of Alaska lands. The base royalty on the Lagniappe block is 16.66%.
In the National Petroleum Reserve-Alaska, or NPR-A, where Willow is located, the royalty is 12.5% but the federal government gets half of that whereas the state of Alaska gets all of the 16.66% royalty from the Lagniappe block.
--KAY CASHMAN
Editor's note: See story in May 4 issue, available online Thursday May 1 at www.PetroleumNews.com
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