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Glacier Oil & Gas updates Badami POD
Kristen Nelson Petroleum News
Glacier Oil and Gas, parent company of Badami-operator Savant Alaska, has submitted a second proposed 17th plan of development for Badami, covering Oct. 7 through July 15, 2021.
The Alaska Department of Natural Resources’ Division of Oil and Gas approved a suspension of operations for Badami in June, requiring that a new updated second 17th POD for Badami be submitted within 60 days of restart of production at the field. As part of the suspension approval, the division suspended a decision on the 17th POD which had been submitted in March and extended the 16th POD for the term of suspension.
When the company submitted its suspension application it said: “The present global condition of low crude oil prices, combined with a lack of demand, obligates Glacier to act as a prudent operator and suspend operations until demand and market price have sufficiently recovered to justify the resumption of production operations.”
The company returned the field to operations in October.
Work completed In a review of work done, Glacier said it completed geological and geophysical evaluation of new Killian prospects using well log data from the B1-07 and existing seismic data. The company also completed G&G evaluation of new Badami sands prospects in the unit and completed an engineering project covering additional infrastructure which would be needed to support Badami East Pad operations. The company is continuing permitting for the Badami East Pad. “Once construction is complete it would become the surface drilling pad for additional Killian prospect wells on the Eastern side of the Badami Unit,” the company said.
During the suspension, Glacier “completed a full facility turnaround that included cleaning maintenance, inspection and recertification work on the facility.” The company “also conducted a major logistic operation to resupply essentials like fuel and chemicals to Badami for restart operations after remaining several months in warm standby.” During 24 days of operations after Savant restarted the Badami pad in October, the field yielded more than 2,000 barrels per day, the company said.
In its updated POD the company said it will continue to work with DNR to resolve its request for expansion of the Badami unit, which the division partially approved in 2013, a decision which Savant has appealed. The company said it has met with DNR regarding the appeal and will continue to work with DNR to resolve the matter.
“As economic conditions warrant,” the company said, it “intends to further the planning development activities for the new Badami and Killian sand prospects” and planning for prospects outside the participating area at Badami. It will also continue compliance work on the Badami East Pad, and will “further engineering work related to infrastructure, tie-in and additional processing requirements for the new Badami East Pad.”
As Petroleum News reported in November, Glacier has put the Badami field up for sale, with a Nov. 16 divestiture notice by BMO Capital Markets Energy Group saying it had been retained by Glacier to represent the company in its sale of the Badami unit.
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