Unocal has applied for a participating area at Happy Valley in the company’s Deep Creek unit on the Kenai Peninsula, and has told the Alaska Division of Oil and Gas that gas will be in production from Happy Valley in November.
Unocal drilled eight Happy Valley wells this year and last, is building a pipeline to connect Happy Valley to the Kenai Kachemak Pipeline and has begun installation of a gas processing facility on the main Happy Valley pad.
The company told the state the individual reservoirs were complex and have a low rate of production and in order to make the accumulation economic it will be necessary “to commingle production and combine the Lower and Upper Tyonek reservoirs into one participating area.”
Unocal also said combining the reservoirs “facilitates the seasonal deliverability of gas in the winter and storage of gas in the summer, significantly increasing the economic viability of the Deep Creek unit.”
The company plans to drill two or more development wells in the Happy Valley area over the next year and may also drill additional development wells in the Star development area “depending on the results of the recompletion work and uphole zone testing in the Star No. 1 well.”
Editor’s note: see full stories in Sept. 12 issue of Petroleum News.
