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Providing coverage of Alaska and northern Canada's oil and gas industry
July 2019

Vol. 24, No.28 Week of July 14, 2019

Jade on target with Sourdough permitting

C-plan review underway; Jade #1 to be drilled this coming winter from ice pad in Area F of Point Thomson unit, eye on development

Kay Cashman

Petroleum News

Permitting for Jade Energy LLC’s new Sourdough well on the eastern North Slope is on track member-manager Erik Opstad told Petroleum News July 10.

Opstad oversees Jade’s operations in Alaska and is a 50% owner. The company plans to drill an oil well in the first quarter of 2020 in the Sourdough prospect on ADL 343112 in area F of the Point Thomson unit, or PTU.

The state lease, the most southeasterly in PTU and adjacent to the western border of the ANWR 1002 area, holds two mid-1990’s Sourdough oil discovery wells that were drilled by BP. In a 1997 press release BP estimated Sourdough holds 100 million barrels of recoverable oil.

Jade is part owner of the lease, per a farm-out agreement with PTU operator ExxonMobil and the other working interest owners. In November, as part of the farm-out, ExxonMobil assigned a 63% working interest in ADL 343112’s Tract 32 to Jade, retaining a 2% overriding royalty.

Jade’s multiyear oil discharge prevention and contingency plan is currently up for review with the Alaska Department of Environmental Conservation. It proposes to address prevention and response measures for a response-planning standard volume of 5,500 barrels per day for 15 days, a total 82,500 barrels.

Brookian main target

The primary target, the application said, is the “Point Thomson Brookian resource, which is 25 API gravity oil, contained within the overpressured reservoir sands found throughout the PTU and nearby Badami oil field, which is 22 air miles west of PTU.”

Along with recent 3D seismic work, “this well will allow Jade to evaluate and then select an option for development of the Brookian reservoir.”

According to the application, Jade’s initial plans call for drilling and testing the Jade No. 1 exploration/appraisal well this coming winter on an ice pad about 3.7 air miles southeast of the PTU airstrip that will be accessed by an ice road from the PTU mine site.

Once a vertical pilot hole is drilled to true vertical depth the well will be plugged back and drilled at a high angle into the Brookian reservoir, Jade said, noting it “firmly believes … the deployment of horizontal production wells is a critical element in commercializing the PTU Brookian opportunity in Area F, as well as its adjoining areas.”

Upon completion of “drilling and extended production testing, analysis of that data will be integrated into the Jade 3D Brookian seismic model.”

With those results in hand, the company will put together a second plan of development and submit it to the Alaska Department of Natural Resources.

Jade’s first plan of development for Area F was approved April 4 by acting Division of Oil and Gas Director James Beckham.

In his approval, Beckham said that based on analysis of the appraisal well data, Jade “will move forward accordingly with additional development at Area F and adjoining areas in the 2020-2021 winter drilling season. Current plans include drilling an additional lateral into the Brookian reservoir and production testing. The need for additional delineation wells and the overall economic feasibility of a field development program at Area F will be considered following the 2020-2021 season.”






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