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Unocal, Forest align Hemlock oil pool interests at Trading Bay Companies applying to expand unit to include lease with successful well; current production is approved by state as lease operation Kristen Nelson PNA Editor-in-Chief
The Division of Oil and Gas has approved the 38th plan of development and operations for the Trading Bay unit in Cook Inlet.
During the 37th plan, operator Union Oil Company of California and working interest owner Forest Oil Corp. aligned their interests in the Hemlock oil pool participating area, the West Foreland oil pool participating area and the Middle Kenai G oil pool participating area in the Trading Bay unit and the Trading Bay field within oil and gas lease ADL 18731. The division said Unocal and Forest have submitted applications to cross-assign their interests in ADL 18731 and the Trading Bay unit leases, and have also revised operator and royalty reports for January through April 2002 production.
A-15 drilled from Monopod The division said Unocal drilled the A-15 and several sidetracks from the Monopod on the non-unitized lease, ADL 18731. One of the sidetracks, A-15RD2L2, extends south into tract 14 of the Trading Bay unit and produces from the McArthur River field, Hemlock oil pool both inside and outside the current unit and participating areas. The division said it has approved allocation of production proposed by Unocal.
Unocal has proposed an expansion of the Trading Bay unit and the Hemlock oil pool participating area and the division said that if those expansions are approved, they will be retroactive to March 30 when production began from the A-15 lease operation.
Division of Oil and Gas Director Mark Myers said in a June letter approving the 38th plan of development that he is approving the A-15 lease operation for six months from start of production to allow time for the working interest owners to submit an expansion application and for the division to evaluate it and issue a decision. The A-15 lease operation expires Sept. 30 unless extended by the division.
37th plan review Unocal told the division in May that development of the Trading Bay unit G-Zone, Hemlock and West Foreland oil pools and the Grayling gas sands reservoirs proceeded as outlined in the 37th plan of development.
Work on the Grayling, Steelhead, King Salmon and Dolly Varden platforms included the drilling of a grass roots gas well; conversion of injectors to oil producers and conversion of oil producers to injectors; re-drilling producers as horizontal producers; and conversion of gas lift oil wells to electric submersible pump completions.
38th plan includes possible grass roots gas well The 38th Trading Bay plan of development includes oil producer re-drills, but the only grass roots well being evaluated would be a gas well. Unocal said that several rig projects are being considered on the Steelhead platform for increasing gas production from the Grayling sands reservoir, including a grass-roots horizontal well.
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