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Nicolai Creek field production begins from west side of Cook Inlet Independent Aurora Gas has first company-operated production in Alaska from worked over well, with more than 3 million feet of gas a day being sold to Unocal Kristen Nelson PNA Editor-in-Chief
Aurora Gas LLC said Oct. 8 that gas sales have begun from its Nicolai Creek unit on the west side of Cook Inlet. Aurora has been in business in Alaska since 1994, and owns some production at the Kenai and Cannery Loop gas fields , but this is its first company-operated production in Alaska. Half going to Agrium Scott Pfoff, president of Aurora Power, a partner in Aurora Gas, told PNA that the first sales occurred Oct. 3. Half of the production is dedicated long term to Unocal for the Agrium fertilizer plant at Nikiski, he said, and the other half is being sold to Unocal under a short-term arrangement.
Aurora Gas purchased the interests of Unocal and Marathon in the Nicolai Creek gas field in early 2000. Wells had been drilled in the field when companies were looking for oil and some gas was used for field operations. No. 3 shut in for 20 years-plus The Nicolai Creek No. 3 well had been shut in for more than 20 years. Aurora cleaned out the well, re-perforated and gravel packed it last December.
In February the well tested at 4 million cubic feet of gas a day from five commingled perforated intervals of the Upper Tyonek formation at depths of 1,900 feet to 2,380 feet.
Aurora said production from the No. 3 is exceeding 3 million cubic feet per day and is increasing as the well continues to unload fluids used during work over operations. Production should rise Ed Jones, Aurora Gas executive vice president and project manager, told PNA Oct. 8 that the well is still unloading fluid from the work over and there is higher back pressure due to processing the gas for sale than when the well was being tested. The gas is compressed and dehydrated at the well site.
Jones said it will probably be a matter of days to get excess water out of the well bore from the gravel pack work over. He said Aurora expects the production rate to come up once the excess water is out of the well bore and back pressure is reduced.
The company has done preliminary planning for additional work at the field, Jones said. The projects include one new surface location; one re-entry and sidetrack of an existing well; and one re-entry and perforation of an existing well. One more workover possible this fall Jones said that because of the season and remaining planning and permitting, it will probably be next spring before more work is done at the field, although, he said, there is a possibility of one work over this fall.
Pfoff told the Alaska Support Industry Alliance earlier this year that Aurora would spend between $2 and $2.5 million on the first Nicolai Creek well, including hookup and facilities.
The company plans to pursue similar development opportunities with small fields already discovered in Cook Inlet, Pfoff told The Alliance: “We see this as a real niche for us.”
In addition to Nicolai Creek, he said, Aurora hopes to drill at least one exploratory well sometime within the next two to three years.
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