BP applies for appraisal wells at Milne

BP Exploration (Alaska) has applied to the state to drill two appraisal wells in the northwest area of the Milne Point unit this winter.

The wells, Liviano 1 and Pesado 1, will each be drilled from an ice pad, with access to the ice pads via a 2.2 mile ice road to be constructed southwest of Milne Point from L-Pad.

The state said the prospects are some 1.2 and 2.2 miles respectively southwest of Milne Point unit L-Pad, in the northwestern area of the Milne Point unit. Liviano 1 is in section 24, township 13 north, range 9 east, Umiat Meridian; Pesado 1 is in section 18-T13N-R10E, UM.

BP said these are Schrader Bluff formation appraisal wells to test Schrader Bluff O and N sand reservoirs.

“The main uncertainty for development of this viscous oil resource is the fluid quality variation within the accumulations,” BP told the state. BP said fluid quality is the primary factor used at Milne Point “to estimate potential production rates and ultimate reserves for viscous oil reservoirs.”

BP said that if the resource is capable of production at economic rates, this area may yield 20 million to 40 million barrels of oil equivalent.

A temporary mobile camp for the project would be at Milne Point L-Pad, with ice road construction expected to begin as early as December.

BP said vertical holes are planned to optimize data acquisition.

Rig mobilization is planned for the beginning of February, with drilling and data acquisition Feb. 10-March 10. BP said drilling operations are expected to take 15-20 days per well, but could run longer.

In addition to the mobile camp at L-Pad, personnel could be housed at existing Prudhoe Bay or Milne Point facilities. A small support camp facility may remain onsite to support possible data acquisition activities following rig release, the company said.

—Petroleum News