State of Alaska approves Jade 3rd POD

Independent gets go ahead on latest annual plan of development for drilling Sourdough prospect in Point Thomson Area F, Tract 32

Kay Cashman

Petroleum News

On Dec. 14, Alaska’s Division of Oil and Gas approved Jade Energy’s third plan of development for Area F, Tract 32, of the Point Thomson unit, which contains BP’s mid-1990s Sourdough oil discovery where Jade plans to drill an appraisal well in first quarter 2022.

The 2012 Point Thomson Unit Settlement Agreement between the State of Alaska and certain Point Thomson Unit working interest owners, including operator ExxonMobil, required a separate plan of development for Area F by Dec. 31, 2018. The settling working interest owners were also required to maintain approved plans of development for this area or relinquish the Area F acreage.

Independent Jade acquired a portion of working interest in ADL 343112, a portion of but not the entire Area F, in 2018 and submitted a POD for that lease by Dec. 31 of that year. Jade is not a party to the Point Thomson settlement agreement, but the division determined that the POD it submitted satisfied the settling working interest owner’s obligation to provide an Area F POD.

Jade’s plans for the 2020 POD consisted of seismic data evaluation, well design and permitting for drilling in the winter of 2021-22, conducting a bathymetric survey and dredging the Point Thomson service pier approach. These activities were conducted, including the bathymetric survey, however dredging was not attempted.

Jade’s plans for the 2021 POD include:

* Equipment and materials mobilization by snow trail to Point Thomson in first quarter.

* Permitting for 2021-22 winter drilling.

* Mobilization planning to Point Thomson.

* Third bathymetric survey of the service pier

* Service pier approach dredging.

* Rig mobilization by barge to Point Thomson

“Plans beyond the next 12 month period remain to drill a well to explore the Brookian interval. Drilling will likely begin in early 2022,” the division said in its approval.

The decision is only for a general plan of development. Specific field operations require separate approval in a Unit Plan of Operations.

The 2022 POD is due Oct. 2, 2021, 90 days before the 2021 POD expires.

Erik Opstad, who oversees Jade’s operations in Alaska and is a 50% owner, is a State of Alaska certified professional geologist who has worked the North Slope for 35 years, including a stint with BP in various roles and as a principal and general manager of Savant Alaska. He currently heads up operating subsidiaries of 88 Energy in Alaska.

See related story in the Nov. 8 issue of Petroleum News.