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Marathon applies for 25,167-acre unit at Ninilchik
Kristen Nelson
Marathon Oil Co. has applied to the state Department of Natural Resources Division of Oil and Gas for approval of the Ninilchik unit onshore and offshore the Kenai Peninsula between Clam Gulch and Ninilchik. The small Falls Creek unit is within the proposed Ninilchik unit just south of Ninilchik.
The proposed unit covers approximately 25,167 acres of which approximately 19,419 acres are state of Alaska lands, the majority of which appear to be offshore. The unit also includes federal, university and fee lands.
Fee mineral owners were offered the opportunity to participate in the unit by paying a proportionate share of unit costs in advance or they could execute an oil and gas lease to Marathon for a bonus of $45 per net mineral acre plus a share of any future royalties if their mineral acres were included in a participating area.
Marathon would be the operator. Marathon and Unocal between them account for 85 percent of the working interest ownership in the proposed unit. The majority of the state leases are owned 60 percent by Marathon and 40 percent by Unocal; Phillips also has a small acreage position in the proposed unit. Testing, work over proposed for 2001 Marathon said immediate exploration plans include processing of two-dimensional seismic lines acquired over the southern end of the structure and along the crest of the structure in May. The lines were designed to image the southern end of the Ninilchik anticline and the anticline south of the Falls Creek fault block.
Also in 2001, a work over is planned at the Socal Falls Creek 1. That well is then expected to be ready for recompletion when production sales begin.
Marathon’s 1 Grassim Oskolkoff well will be production tested to identify gas potential and permitting done for the 2 Grassim Oskolkoff, which will be drilled next year. The 2 Grassim Oskolkoff will be a southern offset to the 1 Grassim Oskolkoff and Marathon said the profile of the well will be designed to get the most favorable positions for all prospective Tyonek reservoirs within the limitations of drilling and completion mechanics.
A 2002 work over is planned at the 1 Union Ninilchik well. Marathon said the plan was to reenter the well and establish sustainable completions in the Tyonek reservoir.
The Clam Gulch block will be drilled in 2004. This well will be on the northern fault block of the Ninilchik anticline and will further delineate gas potential across the structure’s north to south extent. Marathon said the targets in this fault block include Tyonek and Sterling reservoirs.
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