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Cosmopolitan POD conditionally approved
BlueCrest's 12th plan OK'd with conditions through December, including finalizing permits for H-10 well, permits for offshore gas
Kay Cashman Petroleum News
On May 23, the Alaska Department of Natural Resources' Division of Oil and Gas approved BlueCrest Alaska Operating's proposed 12th plan of development with conditions for the period of April 1 through Dec. 31, 2025.
On March 3 the division received the proposed 12th Cosmopolitan unit, or CU, initial plan of development for April 1, 2025, through Dec. 31, 2025, from BlueCrest. The division notified BlueCrest on March 5 that the POD submittal was deemed complete.
The CU is developed from an onshore pad near Anchor Point on the Kenai Peninsula. Production is processed on site, and oil is trucked off location. Production wells extend from the onshore pad under Cook Inlet into State of Alaska submerged lands.
Multiple offshore exploration wells have been drilled in the unit area although no offshore facilities exist.
As of March 31, 2025, the CU cumulatively produced 2.52 million barrels of oil and 9.47 billion cubic feet of natural gas.
The average oil production rate for the 12-month period ending March 2025 was approximately 618 barrels of oil per day, a decrease from 701 barrels of oil per day one year prior and the average natural gas production rate for the period was approximately 0.92 million cubic feet per day, a decrease from 1.18 million cubic feet per day one year prior.
Previous POD The division, in its Dec. 9, 2024, conditional approval of the previous CU POD, imposed five conditions for BlueCrest to meet. Of those five conditions, BlueCrest fulfilled three. The company continues to make progress on fulfilling the two remaining conditions, which are providing the division "with evidence of binding commitments from private investors to fund the Tyonek gas project by the end of the 2025 POD period (March 31, 2025)" and submitting an application to contract the combined Starichkof Sand and Hemlock Formation Participating Area, or SHPA.
BlueCrest accepted the division's conditions set forth in the Dec. 9, 2024, decision on Dec. 19, 2024, and requested an extension to Sept. 30, 2025, to address the contraction of the SHPA. The agency approved that request and further directed BlueCrest to provide a technical presentation to the Division no later than June 30, 2025.
Current POD In its March 3, 2025, proposed POD, BlueCrest told the division that it submitted loan applications with the Alaska Industrial Development and Export Authority, or AIDEA, to fund development of both the H-10 oil well and on-and-offshore Tyonek gas development.
BlueCrest also told the division of its ongoing engagement in negotiations with private third parties to fund development of the Tyonek gas resources.
As part of its proposed POD, BlueCrest further committed to the following work operations:
*Performing hot oil treatments every three to four weeks on the Hansen 1AL1, H4, H12, H14 and H16A wells to maintain production rates;
*Finalizing the remaining permits for the H10 well in 2025;
*Obtaining permits for offshore gas development to meet production start-up at the end of Q2 2027;
*Planning to begin drilling the H10 Trident Fishbone after completing the onshore Tyonek gas wells; and
*Submitting a progress update by June 30, 2025, on drilling program.
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