Winstar lease added to Pioneer’s Oooguruk unit application

Kristen Nelson, Petroleum News editor-in-chief

The Alaska Division of Oil and Gas said May 28 that Pioneer Natural Resources Alaska has amended its application for the Oooguruk unit at its Northwest Kuparuk prospect in Harrison Bay off Alaska's North Slope to include an additional lease, ADL 388576. That lease, formerly held by Winstar Petroleum, was assigned to Pioneer Natural Resources Alaska (70 percent) and Armstrong Alaska (30 percent) effective May 1. Winstar retained an overriding royalty interest.

ADL 388576 is on the northern edge of the proposed unit, just north of a lease — not part of the proposed unit — held by Anadarko Petroleum on which ExxonMobil drilled the 1 Thetis Island well. That lease, ADL 379301, was acquired in a 1983 state lease sale. The 1 Thetis Island well was certified by the state as capable of producing in paying quantities, holding the lease beyond its expiration date of 1993. As originally proposed, the Oooguruk unit included 11 state oil and gas leases covering some 18,500 acres. With the addition of the 12th lease the proposed unit area now covers approximately 20,394 acres.

Armstrong, an affiliate of Denver-based Armstrong Oil and Gas, assembled most of the acreage in the unit and the partners drilled three wells last winter, the 1 Ivik, the 1 Oooguruk and the 1 Natchiq. Those wells complete the proposed work commitment for the five-year unit plan.

Two Phillips Alpine Alaska leases in the original unit application, ADL 388569 and ADL 388570, were assigned to Pioneer (70 percent) and Armstrong (30 percent) effective March 1. Phillips retained an overriding royalty.