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Forest may explore deeper horizons at Redoubt Shoal
Kristen Nelson, PNA editor-in-chief
In addition to development plans for its Cook Inlet Redoubt Shoal field, Forest Oil Corp. has told the state it will continue to evaluate shallow gas and also evaluate oil potential below the Hemlock reservoir it is currently developing.
The Alaska Division of Oil and Gas has approved an application from Forest Oil defining the area expected to produce oil at the Redoubt Shoal unit in Cook Inlet, where production started Dec. 9.
The approved “Hemlock participating area” — the area from which Forest will be producing — includes some 6,520 acres in the Hemlock reservoir on portions of four state oil and gas leases, and is two miles southeast of West Foreland and 16 miles northwest of Kenai. The state said Forest is the only working interest owner; there are approximately 93 overriding royalty owners.
Long-term exploration plans In addition to short-term development plans, the state said Forest has long-term exploration plans for Redoubt, including further evaluation of shallow gas reserves, evaluating oil potential below the Hemlock reservoir and evaluating acreage outside the proposed participating area.
The company’s second plan of development for Redoubt (work planned for Aug. 15, 2002, through Aug. 14, 2003) includes: continuing development drilling, including further delineation of the extent of the accumulation within the main fault blocks; preparing for water injection pressure maintenance; determining the productive potential of northern accumulations; continuing seismic interpretation, geologic modeling and developing a reservoir model of the Redoubt Hemlock reservoir; completing the installation of pipelines and surface production facilities; obtaining approval of initial participating area and pool rules; and continuing to meet local hire commitments.
Forest is also doing long-term planning for managing water injection, which is expected to begin 18-24 months after the field reaches design oil production rates.
On the exploration side, the division said Forest has indicated that a deep test — looking for oil beneath the Hemlock reservoir — is likely to occur in the 2005-2006 timeframe. Exploratory drilling to evaluate acreage outside the proposed Hemlock participating area would only occur when well slots are available, probably in the 2008-2010 timeframe.
Geologic and engineering evidence “There is geologic and engineering evidence to support the formation” of the Hemlock participating area, the division said. State regulations say that a participating area includes acreage that has been shown to be “reasonably known to be underlain by hydrocarbons and known or reasonably estimated … to be capable of producing or contributing to production of hydrocarbons in paying quantities.” PanAm, Tenneco and Unocal drilled five exploratory wells on Redoubt Shoal between June of 1967 and June of 1976.
Oil was discovered in the Hemlock participating area in 1968, but after testing all of the wells were plugged and abandoned.
Since 2000, Forest has drilled five wells on the structure. Forest’s first exploration well, the Redoubt Unit No. 1, was completed Feb. 21, 2001, and the company brought the first well on production Dec. 9, 2002.
No field-wide oil-water contact has been defined at Redoubt, the division said. No gas cap has been encountered and the reservoir is under saturated. The oil averages 26.8 degrees API, slightly lower in gravity than average Cook Inlet crude oils.
The state approved the participating area Dec. 13 with an effective date of Dec. 1.
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