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October 2016

Vol. 21, No. 43 Week of October 23, 2016

Furie’s second well is nearing TD

Furie’s second development well, the KLU A-1 well in the Kitchen Lights gas field, is nearing its target measured depth of 8,420 feet, Bruce Webb, Furie senior vice president, told Petroleum News in an Oct. 17 email.

“We should be running casing mid-week,” Webb said.

The Randolf Yost jack-up rig, stationed at the Julius R gas production platform offshore in Cook Inlet, has been drilling the well. But with insufficient time remaining during the open water drilling season in the inlet to complete the well for production, Furie plans to conduct the well completion in April or May of 2017, Webb said. Furie anticipates moving the Randolf Yost to its winter storage location, probably at the OSK dock in Nikiski, about Oct. 26, he said.

Furie started drilling the A-1 well in mid-September after successfully completing and hooking up the KLU A-2 well, the first of the two development wells that the company had planned to drill in 2016. A gas supply contract with Enstar Natural Gas Co., scheduled to go into effect in 2018, is contingent on Furie drilling two development wells at Kitchen Lights this year. The company is already producing gas from a converted exploration well, the KLU No. 3.

Subsea pipeline

A subsea gas pipeline connects the Julius R platform to Furie’s onshore gas processing facility near East Foreland on the Kenai Peninsula. From there Kitchen Lights gas is delivered into the Kenai Peninsula gas transmission pipeline network. Furie currently supplies gas to Homer Electric Association for power generation, and to Aurora Gas to support Aurora’s gas supply commitments to the Tesoro refinery on the Kenai Peninsula.

Furie can obtain more than enough gas from the KLU No. 3 well to support its current gas supply commitments. However, the two additional wells provide a level of production redundancy should the No. 3 well have to be shut in for some reason. Each well presumably accesses a different part of the Kitchen Lights gas reservoir. And, in preparation for the start of the Enstar contract, Furie anticipates drilling an additional well, the KLU A-3 in 2017.

Furie’s Homer Electric contract involves the supply of 12 million to 18 million cubic feet per day of gas, depending on the time of year. The Enstar contract anticipates delivery rates in the range of 10 million to 22 million cubic feet per day, with an option for additional gas during the winter. The subsea pipeline from the Julius R platform has a maximum capacity of 100 million cubic feet per day - Furie’s development plan for the field envisages the eventual construction of two 100-million-cubic-feet-per-day subsea pipelines from the platform.

- ALAN BAILEY






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