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Forest disappointed in Redoubt; Cosmopolitan gets extended test
Kristen Nelson Petroleum News Editor-in-Chief
Forest Oil said Aug. 6, in its second quarter earnings report, that recent results from its Redoubt Shoal field in Cook Inlet, Alaska, were below the company’s expectations.
Forest has 100 percent working interest at Redoubt and is the field operator.
Overall company production of some 400 million cubic feet a day equivalent in the quarter continues “to be below our expectations, due to poor performance in our Alaska business unit,” Dave Keyte, the company’s executive vice president and CFO, said in an Aug. 7 conference call.
Craig Clark, Forest’s president and CEO, noted the company has failed to show incremental production growth and “Alaska oil sales disappointed us, even though we did make some progress in reducing our down time” at Redoubt. Drilling complete on 4A well The company said it has completed drilling the Redoubt Unit 4A well, which was drilled to a depth of 18,082 feet and is being tested. It said production results from the recently completed Redoubt Unit 6 well, and drilling results from the Redoubt Unit 4A, “are below our original expectations and will result in a change to our existing geologic model of the Redoubt Shoal field.” Forest said it will “undertake an integrated study on the field and develop geologic and reservoir models that appropriately reflect the apparent reservoir complexity and heterogeneity.”
Clark noted the company has said it saw water on the Redoubt 6 test and also on the Redoubt 4A logs, “which is not consistent with the current mapping. We started a geologic study with a team from Denver to redo our geologic model.” The rig will be moved to the Redoubt Unit 7 which, Clark said, is on the next leg. That allows, he said, the opportunity for diagnostic and stimulation work. “We may also consider horizontal drilling to increase productivity, and reduce the number of wells,” he said.
The company hopes to have “a better picture of the reservoir and the reserves by year end,” Clark said. Cosmopolitan testing Forest also said the Hansen 1 well at the Cosmopolitan prospect on the southern Kenai Peninsula, in which it has a 12.5 percent working interest, was sidetracked to an upstructure position at a total measured depth of 20,789 feet. The well was completed with a horizontal section through the Starichkof and Hemlock intervals.
“After a short test,” Forest said, “the rig was released and the well is being prepared for an extended production test.”
Clark said the well tested oil from the sidetrack this quarter. “The operator will be trucking the oil to the refinery during the extended test,” he said.
State officials told Petroleum News that Cosmopolitan operator ConocoPhillips tested the sidetrack for four days and then went to partners for approval for a longer test. The state subsequently approved a 90-day extension of testing, through Nov. 30. Results are due to the state Jan. 15.
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