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Amaroq files 47th POD for Nicolai Creek
Kristen Nelson Petroleum News
Amaroq Resources LLC President G. Scott Pfoff has filed the 47th plan of development and operations for the Nicolai Creek unit which produces natural gas on the west side of Cook Inlet.
The 47th plan would be in effect for calendar year 2021.
During the 46th plan period there was no development drilling, Pfoff said, and the only field modification was the conversion of a producing well to a produced water disposal well.
The Alaska Oil and Gas Conservation Commission authorized underground disposal of Class II oil field waste fluids into the Nicolai Creek unit No. 1B well and during the spring and early summer of 2020 Amaroq undertook steps necessary to convert the well, which was “deemed ready for injection of produced water in mid-June,” with installation of permanent surface injection facilities in progress, Pfoff said in the Sept. 28 plan submittal.
The company has five active wells at the field: Nicolai Creek unit No. 2, which was put back on production in June after being shut-in for nearly three years. “The well is produced from time to time, pressure permitting,” Pfoff said.
NCU No. 3 is shut-in pending a coiled tubing cleanup requiring 1.25-inch coiled tubing, not readily available in the area.
NCU No. 9 has been on production with no intervention other than bailing through a sand bridge since a coiled tubing cleanout was performed in the third quarter of 2018.
NCU No. 10 remains shut-in until the water disposal facilities associated with well No. 1B are completed.
NCU No. 11 “remains on production with no recent intervention.”
Nicolai Creek unit production totaled 92,881 thousand cubic feet for the 12 months from Sept. 1, 2019, through Aug. 31.
Production from wells in the unit during that period was: 6,574 mcf from the NCU No. 1B; 3,027 mcf from NCU No. 2; 64,157 mcf from NCU No. 9; 257 mcf from NCU No. 10; and 18,686 from NCU No. 11.
Plans for 47th POD The plan lists completion of the conversion of the NCU No. 1B well during the 47th POD period, with four wells expected to be producing, one well awaiting disposal facilities and five wells abandoned by the previous operator.
NCU No. 10 is shut-in waiting permanent surface facilities for produced water disposal. Pfoff said “Amaroq will continue evaluating the economics associated with a gravel pack and/or rig workover during 2021 which would facilitate production at a much higher rate.”
While the company does not expect to drill any exploration wells during the 47th plan period, “Amaroq remains interested in the deeper oil and gas prospects in the Nicolai Creek Unit,” Pfoff said.
Bonding, capital issues Long-range plans for Nicolai Creek are dependent on the company’s request to AOGCC for a bonding reconsideration and on its ability to attract additional capital.
“If the operator is required to post a $2.4 million bond with AOGCC pursuant to the newly established requirements, the field immediately becomes uneconomic and is likely destined for cessation of operations,” Pfoff said.
Additional capital would be necessary for effective further development of the field, he said. “Nicolai Creek Unit has tremendous upside potential for conventional oil and gas, unconventional gas, and storage development. If the operator is successful in attracting the additional investment dollars to pursue any or all of these upsides, the field would likely remain in operation for years to come,” Pfoff said.
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