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Alliance applies for unit at Hemi Springs
Kristen Nelson Petroleum News
Alliance Exploration LLC has applied to the Alaska Division of Oi and Gas for formation of the Hemi Springs unit. The Carson City, Nevada-based company filed the application June 6; the division noticed it June 20; comments are due July 24.
The division said the area proposed for the unit is three state oil and gas leases some 18 miles due west of Deadhorse, near the Kuparuk River and Prudhoe Bay units; the area is adjacent to the southern boundary of the Prudhoe Bay unit.
Alliance said it owns 100 percent working interest in the leases and that approval of the proposed unit would cover some 10,133 acres of state lands.
The proposed unit area “includes two separate reservoir targets, Kuparuk C and Ivishak,” Alliance said. “The primary reservoir target is a stratigraphic trap in the Kuparuk C and defined by an amplitude anomaly observed in the Storms 3D Seismic survey.”
The company said the ARCO Hemi Springs State 1 is the only well in the proposed unit area. It found oil in the Kuparuk C but was not drilled in the “most optimum location for Kuparuk C pay production.” That well also penetrated the Ivishak and found a think pay section.
Two-well program In an initial plan of exploration Alliance said it is proposing a two-well drilling program for the proposed two-year plan. Both wells are planned on Tract 2 in the proposed unit (ADL 392104). The first well will target “a seismic amplitude anomaly in the Kuparuk C” and the second well, which would be drilled depending on results of the first well, would target a structural high in the Ivishak formation.
In its exploration plan Alliance said that by March 31, 2018, it would begin operations to drill the first well at Hemi Springs, a straight pilot hole to the bottom of the Ivishak formation. The well would then be logged, a whipstock set and a lateral drilled to the southwest in the Kuparuk C.
The company said that if log evaluation indicates prospective hydrocarbon zones those would be tested and completed.
By March 31, 2019, Alliance said it would begin operations to drill the second well, a straight pilot hole to the bottom of the Ivishak formation which would be logged and tested based on evaluation of data collected. A whipstock would then be set and a lateral drilled to the northeast in the Kuparuk C, and tested if log evaluation indicates prospective hydrocarbon zones.
Tract 2, ADL 392104, the site for both proposed exploration wells, is a 2,560-acre trace with a Nov. 30, 2022 expiration date. The other two tracts expire this year: Tract 1, ADL 391544, is a 2,501-acre tract with a June 30 expiration date; Tract 3, ADL 391545, is a 2,512-acre tract with a June 30 expiration date.
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