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Unocal applies for two new units on Kenai Peninsula
South Ninilchik unit adjacent to Marathon’s just-approved Ninilchik unit; Deep Creek unit some five miles inland from Ninilchik Kristen Nelson PNA Editor-in-Chief
Unocal has applied for two new units on the Kenai Peninsula: the South Ninilchik unit — uplands and tide and submerged lands northeast of the town of Ninilchik and bordered on the east by the Ninilchik River — and the Deep Creek unit — uplands that parallel the Cook Inlet coastland approximately five miles inland from Ninilchik and Happy Valley.
Both units would be jointly managed by the state and Cook Inlet Region Inc. and would have two-year terms.
Unocal proposes to drill gas wells in each of the units in 2001-2002, and to acquire seismic over the units in 2002-2003.
Deep Creek Unocal has 100 percent working interest ownership in the Deep Creek unit, 40 percent of which is on state leases and 60 percent of which is on Cook Inlet Region Inc. leases. Unocal told the state that Phillips Alaska Inc. has an option to elect to become a working interest owner or royalty owner in the Deep Creek unit and is a potential party to the Deep Creek unit joint operating agreement, but currently has no record title in any property located within the proposed unit outline.
The proposed Deep Creek unit covers approximately 22,216 acres in all or portions of the following lands (all of which are in the Seward Meridian): sections 1-2, 10-12, 13-16, 20-23 and 27-34 of T2S-R13W; sections 5-8 and 18 of T3S-R13W; and sections 1-3, 10-15 and 24 of T3S-R14W.
Unocal is proposing a two-year work program. In 2001-2002, the company would drill one new exploration well offsetting the original Socal Deep Creek Unit 1 well — drilled to 12,253 feet in 1958 in section 15 T2S-R13W, SM — to prove-up hydrocarbon potential of this trend. The Socal Deep Creek well had some gas in drilling mud and water in two drill stem tests.
Unocal’s proposed exploration well would be a vertical hole with a proposed depth of 11,200 feet measured depth. The well would be 510 feet from the west line and 272 feet from the south line of section 11 T2S-R13W, SM.
In 2002-2003, Unocal would acquire new proprietary two-dimensional and/or three-dimensional seismic data within the proposed unit area to enable mapping of the adjacent structures.
If the initial well is successful, Unocal said it may wish to drill one or more appraisal or development wells in 2002-2003 to support the economic viability of a pipeline.
Unocal said that although the proposed plan is only for two years, the company currently envisions drilling at least one more exploration well on one of the other structures in the proposed unit area in 2004-2005.
There is relatively poor seismic data currently available for South Ninilchik, Unocal told the state, so structural interpretation of this trend is by no means complete and final. Additional seismic data may reveal that the other structures are not present as currently mapped. For that reason, Unocal said, it is not prudent to commit to additional exploratory drilling in the proposed unit at this time.
South Ninilchik Unocal has a 97.02 percent working interest in the South Ninilchik unit; the remaining acreage is unleased. Approximately 55 percent of the unit is on state leases and 24 percent is on CIRI leases.
The remaining royalty ownership is divided among the Kenai Peninsula Borough, the Bureau of Indian Affairs, and numerous estates, trusts, and private individuals.
The proposed unit covers approximately 9,328 acres in all or portions of the following lands (all Seward Meridian): sections 16-20 and 29-31 of T1S-R13W and sections 23-26 and 35-36 of T1S-R14W.
The initial plan of exploration includes one new exploration well offsetting the Mobil Ninilchik unit 1, drilled in 1964 in section 24 T1S-R14W, SM, to a depth of 12,724 feet.
Unocal’s proposed exploration well is a vertical hole with a proposed depth of 9,200 feet to prove up the hydrocarbon potential of the structure. The well will be 1,970 feet from the west line and 1,570 feet from the north line of section 24 T1S-R14W, SM.
In 2002-2003, Unocal would acquire new proprietary 2-D and/or 3-D seismic data within the proposed unit area to enhance mapping of the structure and the unit area.
If the initial well is successful, Unocal may drill one or more appraisal or development wells in the South Ninilchik structure.
As with the Deep Creek area, Unocal said currently available seismic for the South Ninilchik unit is of relatively poor quality and structural interpretation of the trend is by no means complete an final.
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