Marathon files plans for GO gas pad development

Kristen Nelson

Marathon Oil Co. plans to begin gas development activities at the Grassim Oskolkoff drill pad approximately nine miles north of Ninilchik in August and start producing gas from the pad in December 2003.

The Division of Oil and Gas said the pad is within the Ninilchik oil and gas unit, in the SE 1/4 of the NW 1/4 of section 23 township 1N range 13W, Seward Meridian, on privately owned surface lands.

Work at the prospect began in 2000 with the reactivation of an access road, pad construction and the drilling of a water well. Two exploration wells were drilled, one each in 2000 and 2001, the Grassim Oskolkoff No. 1 and No. 2 wells.

Proposed development is from the two existing wells. Additional wells may be drilled in the future, and Marathon said in its application that the pad configuration should allow up to two additional wells, if required.

The development work planned to begin later this year includes installation of production facilities on the existing pad and the installation of a steel gas gathering lateral immediately adjacent to the existing pad access road to carry natural gas from the pad to the proposed Kenai Kachemak pipeline.

Production facilities will be housed in heated metal buildings on the existing pad. Gas flow lines and heating, dehydration, separation and metering equipment will be installed.

Marathon said there will be methanol injection capability at the wellhead and elsewhere in the process as necessary to inhibit the potential for formation of natural gas hydrates.