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Amaroq's 52nd Nicolai Creek unit development plan approved by DOG
Kay Cashman Petroleum News
On Nov. 19, G. Scott Pfoff of Amaroq Resources was sent by certified mail conditional approval of the company's proposed 52nd Nicolai Creek unit plan of development, or POD, from the Alaska Department of Natural Resources' Division of Oil and Gas. The conditional approval was signed by division director Derek Nottingham.
The Nicolai Creek unit, or NCU, is a small natural gas field on the west side of Cook Inlet.
The division had received the proposed 52nd POD from NCU operator Amaroq on Sept. 30 and notified Amaroq by email on Oct. 9 that the POD submittal was deemed complete.
Amaroq provided a technical review to the division on Nov. 3.
Unit history The NCU began natural gas production in 1968. The field was shut in from 1977 until 2001 when production was restarted following Aurora Gas succeeding Union Oil of California as operator and sole working interest owner.
After Aurora Gas filed a reorganization plan with the federal bankruptcy court, Aurora Exploration acquired the NCU from Aurora Gas effective Jan. 1, 2018. Aurora Exploration submitted an NCU endorsement and letter of acceptance of all duties, obligations, and responsibilities from Aurora Gas.
Aurora Exploration later changed its name to Amaroq Resources and became the designated operator of the NCU pursuant to Article X of the NCU Agreement.
During the period beginning Sept. 1, 2024, through Aug. 31, 2025, the NCU produced an accumulative total of 146,042 Mcf, an average of 400Mcf/d. This production represented a 92% increase from the prior 12-month period.
Previous PODs In the 50th POD, Amaroq identified the NCU #3 and #10 wells for workover, and the division imposed conditions that Amaroq must workover the NCU #3 or #10 well by year end 2025 in its decision.
However, at the end of the 50th POD period, Amaroq commissioned a technical study of the NCU by Petrotechnical Resources Alaska. PRA identified several seismic anomalies that potentially represented significantly greater reserves of natural gas than a workover of an existing NCU well could bring into production.
Three exploration wells were proposed in the 51st POD to target these probable gas reserves seen in the seismic anomalies. Amaroq requested that these exploration wells replace the conditions imposed by the division since they represented potentially significantly better gas reserves and economics.
The division approved the request and stated either a workover or drilling of the exploration wells would satisfy the conditions of the POD.
During the 51st POD period, Amaroq installed a new booster compressor which led to a significant increase in production from the NCU. Additionally, Amaroq expended significant effort trying to implement the drilling program. Included in this effort was an application to the division for royalty modification at the NCU.
Amaroq was granted royalty modification by the division on Sept. 9, 2025.
Amaroq, however, was unsuccessful in securing funding to drill or workover any of the proposed wells during the 51st POD period. With royalty modification, economics for the field and future projects are significantly improved.
52nd POD During the upcoming POD period, Amaroq intends to continue its effort to obtain funding to meet the conditions imposed by the division and extend field life for the NCU. Amaroq is planning to pursue funding from either the Alaska Industrial Development and Export Authority (AIDEA) or another third party.
Finding and decision When considering a POD, the division must consider the criteria in 11 AAC 83.303(a) and (b).
Accordingly, the agency considered the public interest, conservation of natural resources, prevention of economic and physical waste, protection of all interested parties including the state, environmental costs and benefits, geological and engineering characteristics of reservoirs or potential hydrocarbon accumulations, prior exploration activities, plans for exploration or development, economic costs and benefits to the state, and any other relevant factors, including mitigation measures. 11 AAC 83.303(a),(b).
The division may impose conditions as proposed modifications to a POD. 11 AAC 83.343(b). The division elected to extend the previously set conditions in this upcoming POD period:
* Amaroq will drill at least one of the three proposed wells during the 52nd POD period; or
* Amaroq will workover the NCU #3 or NCU #10.
In approving the prior PODs for the NCU, the division considered the 11 AAC 83.303(b) criteria and found that the PODs promoted conservation of natural resources, promoted prevention of waste, and protected the parties' interests. The division incorporated those findings by reference.
In its finding and decision the division said the public has an interest in diligent development of the State's resources. The plans set forth in the 52nd POD protect this public interest by allowing Amaroq additional time to pursue funding for the exploration wells or working over one of the previously identified NCU wells. While Amaroq did not meet the conditions imposed in the previous POD, the division said Amaroq has shown diligent efforts by applying for and receiving royalty modification. The NCU is near its economic end of life, and any extension of field life by increased gas production is welcomed.
The division said the 52nd POD therefore is necessary and advisable to protect
the public interest.
The 52nd POD for the NCU was approved by the division for the period of Dec. 29, 2025, through Dec. 29, 2026.
This approval is only for a general plan of development. Specific field operations require separate approval under 11 AAC 83.346, unit plan of operations.
Under 11 AAC 83.343, the 53rd POD is due Sept. 30, 2026, 90 days before the 52nd POD expires.
Questions regarding this decision should be directed to Heather Beat with the division at (907) 269-8792 or
via email at [email protected].
-KAY CASHMAN
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