Marathon looking at innovative technologies for Kenai gas fields

Barnes says a purpose-built truck-mounted rig approved, efforts under way to unlock known gas in tighter Kenai gas field Beluga formation

Kristen Nelson

PNA News Editor

Marathon Oil Co. is looking for ways to reduce the cost of producing gas in Cook Inlet, the company’s Alaska region manager, John Barnes, told the Alaska Support Industry Alliance Jan. 8.

The company, Barnes said, is aiming for “just-in-time reserve development” and is now in a period of exploration activity.

Marathon has had success with two exploration wells recently, he said. The company re-entered the Wolf Lake No. 2 well on the Kenai National Wildlife Refuge and tested the gas zones and is now working with the U.S. Fish and Wildlife Service on development plans for Wolf Lake.

Marathon also drilled two wells at the Sterling gas field, the first a development well within the existing field. The second, an exploration well, was drilled to explore for deeper gas potential and is being completed.

“Although it’s too early to talk specifics, the fact that we’re completing the exploration well is a good sign,” Barnes said.

Technology initiatives are under way in two areas, Barnes said.

“The first is an effort that we’ve initiated to unlock known gas in the tighter Kenai gas field Beluga formation,” he said. The gas is known to be there, he said, but recovery factors to date are unacceptably low. Technological efforts are focused on reservoir characterization and completion technology to solve this problem, he said.

“We will use the results of this effort in a further phase of the Beluga formation development program that is scheduled for 1999.”

In another approach to new technology, Barnes said, “we’ve received internal approval to design and build a purpose-built mobile drilling rig for Kenai onshore gas operations.”

Barnes said Marathon was looking for cost reductions in three areas with the rig: mobilization and demobilization costs; across-the-board improvements in operational efficiencies; and a smaller footprint on location.

“And to accomplish all of those, we’re looking for a smaller truck-mounted drilling rig, similar to what’s utilized in the Lower 48,” he said.

“While this rig will not be capable of drilling all wells anticipated by Marathon, we’re looking for a significant impact on the majority of the wells that we drill.”