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Cosmopolitan unit's 13th plan of development placed in abeyance
Kay Cashman Petroleum News
On Aug. 21, the Alaska Department of Natural Resources' Division of Oil and Gas declared that BlueCrest Alaska Operating's proposed 13th plan of development for the Cosmopolitan Unit would be held in abeyance because the company was in default for failure to comply with the terms and conditions of their 12th POD, and because the DNR commissioner's office was reviewing BlueCrest's request for reconsideration. So, BlueCrest's proposed 13th POD for the period of Aug. 22, 2025, through Aug. 21, 2026, was placed in abeyance -- i.e. suspension -- pending resolution of the default and their reconsideration request.
Once the necessary decision and order from the DNR commissioner's office is issued, BlueCrest may, subject to the dispositions of those administrative actions, have 20 days to submit a new POD.
BlueCrest remains authorized to continue operations under the 12th POD, with no change to the underlying conditions.
Unit description The Cosmopolitan unit, or CU, was developed from an onshore pad located near Anchor Point on the southern Kenai Peninsula.
Production is processed on site and oil is trucked off location.
Production wells extend from the onshore pad under Cook Inlet into state of Alaska submerged lands. Multiple offshore exploration wells have been drilled in the unit area although no offshore facilities exist.
As of June 30, the CU cumulatively produced 2.57 million barrels of oil and 9.52 billion cubic feet of gas.
Average oil production rate for a 12-month period ending June 2025 was approximately 581 barrels of oil per day, a decrease from 687 barrels of oil per day one year prior.
The average natural gas production rate for the same 12-month period was approximately 0.80 million cubic feet per day, a decrease from 1.09 million cubic feet per day one year prior.
Conditional approval The division in its Dec. 9, 2024, conditional approval of the CU POD for the period from Jan. 1, 2025, to March 31, 2025, imposed five conditions for BlueCrest to meet during this time.
Of those five conditions, BlueCrest fulfilled three.
BlueCrest continues to progress on fulfilling the two remaining conditions -- requiring the company to provide the division "with evidence of binding commitments" from private investors to fund the Tyonek gas project and the H10 fish-bone well.
John M. Martinec is president and chief operating officer of BlueCrest Alaska Operating.
--KAY CASHMAN
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