88 Energy says studies done in conjunction with its Merlin 1 post-well testing and analysis have identified additional upside oil potential in the Umiat oil field. The announcement was made Aug. 4 after Emerald House, the wholly owned subsidiary of 88 Energy that holds the Umiat leases, received approval from Interior’s Bureau of Land Management to delay by two years to Aug. 31, 2023, the drilling of another Umiat well in the two-lease unit.
Subsequent unit obligations were also extended by two years.
Merlin 1 was the exploration well drilled in Project Peregrine by 88 Energy this past winter. The Umiat oil field is adjacent to the southern end of the Peregrine lease blocks (see map in the print and pdf versions of this issue).
Merlin 1 penetrated a thick section of Grandstand sands that are also found in the Umiat unit reservoir, 88 Energy said. “Wireline data collected over this interval is being analyzed and integrated with the Umiat dataset. Preliminary pressure analysis suggests there is potential for bypassed pay in the footwall of the Umiat structure. The Umiat footwall has only been penetrated by one well (Umiat 11), which was drilled in 1952 with a crude logging and testing program. Seismic attribute analysis suggests there is potential for additional reservoir sands in the footwall of the Umiat structure.”
Discovered in 1945, Umiat was never produced because its reservoir was shallow, partially frozen in permafrost and low pressure. But more recently some suspected the northern of the two unit leases contained an oil-bearing deeper reservoir.
For many years the field’s distance from infrastructure was also a challenge to development, but now Umiat sits in a hot location - south of ConocoPhillips’ Willow discovery and southwest of Oil Search’s Pikka and Horseshoe discoveries.
There were 12 wells drilled at Umiat between 1945 and 1952 by the U.S. Navy and the two modern wells drilled by former operator Linc Energy in 2013 and 2014.
Anadarko Petroleum saw promise in the area in 2002, having conducted two proprietary seismic seasons and three field seasons as part of an assessment of the Brooks Range Foothills petroleum system.
“Seismic line across Umiat show hydrocarbons are reservoired in both the hanging wall and the footwall of the structures,” Anadarko’s Greg Hebertson said.
“The seal capacity of traps - data from Umiat wells and field work and based on our analysis … show the seals are there and certainly capable of holding large hydrocarbon columns.”
Paul Craig, who won the northernmost lease with partner Pete Zamarello in a June 2002 federal lease sale, said Jan. 29, 2020, “when we purchased it our geological thinking was that the oil in the permafrost at Umiat was seepage from an oil field deep and to the north.”
Finally, 3D seismic
As part of the acquisition of the Umiat unit leases, Emerald House received the Umiat data pack which includes 3D seismic data.
“Previously, only 2D seismic lines-controlled interpretation across the Umiat structure,” 88 Energy said. “Integrating the Linc/Malamute interpretation has provided a better understanding of the Peregrine reservoir geometries to the north as well as enriching our petrophysical database with additional well control.”
Work ahead
88 Energy said it will use its 24-month extension to analyze the “extensive amount of historical data acquired from the sellers of the Umiat oil field.” The extension allows the company to “optimize a full field development plan, which will include evaluating potential synergies with plans associated with the Project Peregrine acreage. It will also enable 88 Energy to use the knowledge gained from drilling the Merlin 1 well to plan an efficient operational program to maximize the chance of success at Umiat.”
Specifically, the company said it will:
* Investigate previous scoping studies and explore possible alternative development scenarios to improve the economics of the Umiat oil field, including synergies with Project Peregrine and Project Icewine, as well as possible synergies with nearby leaseholders such as ConocoPhillips’ Willow oil field, noting that the Biden administration has provided support to develop Willow.
* Develop an understanding of potential environmental impacts of further exploration and development.
* Identify potential drilling locations.
* Engage with local communities, subsistence groups and the North Slope Borough.
* Incorporate Merlin 1 drilling results and ascertain (via biostratigraphy and/or new seismic acquisition) whether Umiat and Peregrine targets share the same reservoir interval.
- KAY CASHMAN
