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Strong Energy applies to form Gubik unit on Alaska North Slope
Kay Cashman Petroleum News
On Feb. 1 the Alaska Department of Natural Resources' Division of Oil and Gas posted a public notice saying Strong Energy Resources of Houston, Texas filed an initial application on July 25 to form the Gubik unit on Alaska's North Slope. Strong is 100% working interest owner and operator of the proposed unit.
The application was signed by Strong Energy Resources President and CEO James S. Watt.
The proposed Gubik unit will encompass 1,928.14 acres of state land between the National Petroleum Reserve-Alaska and Arctic Slope Regional Corp. lands, within the riverbed of the Colville River.
GG&E characteristics The Gubik unit leases, acquired in 2015 and 2024, have direct offset wells that tested hydrocarbons in the Brookian sequence. Within these leases, Strong said it has identified contiguous geologic pay horizons in the Tuluvak and Nanushuk formations.
The on-structure offset wells substantially decreased technical risks for these pay horizons, which is supported by a series of successful tests within the ASRC acreage, most recently starting with the Gubik No. 3 well in 2007. These wells have delineated a gas column within the proposed Gubik unit area, collectively containing in excess of 1 trillion cubic feet of sweet gas. There is also evidence of light oil in the system.
Strong has conducted reviews of the successful wells and studied the petroleum systems capable of high pressure at unusually shallow depths.
This work is proposed to continue with well and seismic on offset lands, identifying the basis for a potential commercial gas development.
Although no exploration wells have been drilled on the applicant's leases, several wells drilled in close proximity to the proposed Gubik unit have formed Strong's geological interpretations.
The Gubik wells, 1, 2, 3 and 4, and Chandler No. I provide geologic control regarding the reservoir, source and seal characteristics of the rocks they penetrated and are crucial for understanding the reservoir characteristics, source rock potential, and sealing capabilities of the region.
These and other wells have been studied and tied to the local seismic dataset, including Anadarko's 3D, Renaissance Alaska's 2D and 3D seismic surveys. Multiple vintages of 2D seismic data were acquired after the start of the NPR-A drilling program, with the most significant data being GSI USGS NPRA data set, Strong said.
Timing is right Strong believes that the federal government's current emphasis on Alaska resource development has improved the investment climate, and the company is committed to advancing Foothills gas to market.
Public reserve estimates place the Gubik field reserves at approximately 1 TCF of sweet gas in-place, with no CO2 or H2S processing required, with substantial gas reserves in the immediate Foothills area referenced during the previous consideration of the Anadarko's bullet line feasibility.
Strong plans to collect and assess the drilling and seismic data in the Gubik Foothills area to determine the reserve distribution and then let a contract to a third party(ies) study to determine the commercial feasibility of a gas development.
Based on this valuation, it is expected that collectively the Gubik Foothills Area contains sufficient potential reserves to justify the estimated development and infrastructure costs for the stranded gas accumulations. This will lead to additional seismic and drilling in the area in the five-year timeframe attached to Strong's proposed plan of exploration.
Strong's field program will be supported by an approximately 80-mile tundra snowpack trail extending from the Dalton Highway to the Gubik unit.
Local ice roads and pads may be constructed to support drilling operations. Access to the area during the summer is by the nearby Seabee airstrip and pad.
Proposed unit POE Strong believes there is a timely opportunity to further assess both the Gubik field and the near Foothills region and has engaged with ASRC and the Alaska Gasline Development Corp. to gauge general interest.
This suggests a timeframe of approximately five years for a potential lease extension, Strong said.
As part of a work program Strong plans to: integrate Anadarko and Renaissance 3D programs, as well as the 2D data in 2026-27; initiate a third-party reserve and commercial feasibility study in 2027; seek a major investor to acquire additional acreage surrounding the Gubik feature and to partner in the work program; assess potential pipeline routes; begin collecting environmental data to support the proposed winter drilling program in 2030-31; drill one to two additional wells; finalize area development plan and proceed with approvals and environment permits.
Background Strong began to acquire leases in the Gubik field in 2020 and has a combined current leasehold of 1,928 acres.
The Gubik anticline was first drilled after World War II in 1951 by the U.S. Navy (currently referenced as Gubik 2). The well blew out while pulling pipe to change the bit, proving the structure to be hydrocarbon productive.
Gubik Unit No. 1 was drilled in 1963; one zone tested at a max rate of 890 thousand cubic feet per day, and another at 500 mcf per day.
Gubik No. 2 was drilled in 1951; the well blew out while pulling pipe.
ASRC selected the Gubik acreage near and east of the Colville River as part of the Alaska Native Claims Settlement Act given the area's oil and gas potential. These lands did not include the river bottom acreage that the state retained.
In 1998 ASRC entered into an agreement with Anadarko Petroleum Corp. covering 3.2 million acres. Anadarko drilled two additional wells, No. 3 and 4, on the structure in 2008-09.
Gubik No. 3, 2008, tested 14.4 million cubic feet per day in the Tuluvak and 0.9 mmcf per day in the Nanushuk.
Gubik No. 4, 2008, had gas shows on the mud log but no test was conducted.
Chandler No 1, also drilled by Anadarko, was directly south of the Gubik field and established the presence of a deeper gas reserve.
East Umiat also had gas potential. Based on 3D and well results Anadarko proposed a bullet line from the area to provide gas to Southcentral Alaska.
Gubik leases Strong, as a partner in Renaissance Alaska, first acquired Gubik leases in 2007-08. In addition to geologic studies, Renaissance shot high-resolution seismic across the structure.
Renaissance sold the Umiat field to Linc Energy in 2010. Linc later relinquished the leases.
Woodstone acquired ADL 392717 and 392718 in 2015, and Strong acquired the Woodstone leases in June 2020. An in-depth evaluation of the Gubik feature using 2D seismic and well data from DNR's database has been recently concluded.
The areal extent of the Gubik field is not fully defined, and approval of the Gubik unit will allow the unit operator to build and utilize one set of infrastructure and facilities to develop all of the Gubik field leases, maximizing the efficient recovery of oil and gas from the leases and minimizing the adverse impacts on the surface and other resources, including hydrocarbons, gravel, sand, water, wetlands, and valuable fish and wildlife habitat'
--KAY CASHMAN
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