Ninth POD filed for Kitchen Lights unit
 Click here to go to the full PDF version of this issue, with any maps, photos or other artwork that appears in
some of the articles.
Furie/HEX met 8th plan commitments; in 9th period will continue work to establish PA, evaluate drilling more wells or sidetracks
Kay Cashman Petroleum News
On Oct. 6 John Hendrix filed the ninth plan of development for the Kitchen Lights unit in the Cook Inlet basin with Alaska’s Division of Oil and Gas.
Hendrix is CEO of Furie Operating Alaska LLC, operator of the Kitchen Lights unit, the only Alaskan-owned natural gas producing company in Alaska. He became a Cook Inlet gas producer in July 2020 when his newly formed company, HEX Cook Inlet LLC, acquired Furie and its partners Cornucopia Oil & Gas Company LLC and Corsair Oil & Gas LLC in bankruptcy proceedings.
The centerpiece of the purchase was the offshore Kitchen Lights unit, its Julius R. production platform, a 15-mile subsea gathering line and an onshore natural gas processing facility at Nikiski.
The Kitchen Lights unit, or KLU, is the largest unit in Cook Inlet by acreage and has been seen as a source of growth for the basin.
Kitchen Lights’ ninth POD will be in effect from Jan. 4, 2023, through Jan. 3, 2024.
Met all commitments In reviewing the eighth POD, which runs from Jan. 4 of this year through Jan. 3, 2023, Furie committed to the following:
• Continue development of proved gas reserves in the Kitchen Lights unit, or KLU.
• Continue efforts to optimize production, enhance safety and minimize environmental footprint of KLU related infrastructure.
• Continue progress on establishing a participating area along with possible unit expansion.
• Evaluate drilling of additional wells on existing lease acreage and lease acreage acquired in the 2021 Cook Inlet lease sale.
Hendrix said the following activities have either been completed or are in progress in support of the eighth POD:
• Well KLU A-1 Beluga production remained shut-in throughout 2022 due to ongoing excessive solids production. A production test of the Lower Sterling began May 2022 and is ongoing.
• Well KLU A-2 Beluga production declined to the point that frequent soap sticks were required to unload the well to sustain flow. A Lower Sterling production test commenced in June 2022 and is ongoing.
• Well KLU 3 continued production from the existing open Beluga intervals.
• Well KLU A-4 continued production from the existing open Beluga intervals. A production test was performed on the Lower Sterling interval; the interval produced water with little gas and was incapable of sustained natural flow to surface.
• The Julius R platform produced water handling system reliability improved significantly. Water handling system reliability is critical to maximizing recovery from the elevated water rate of Sterling intervals.
• Seismic data was reprocessed resulting in several potential development leads. Work is ongoing to further evaluate these potential development leads.
Modification conditions met The division approved the eighth POD with modifications on Dec. 20, 2021. The modifications imposed the following conditions on Furie:
• Furie will provide the results of its detailed assessment from the 2021 POD period to the division by no later than Feb. 28, 2022.
This requirement was fulfilled Feb. 24, 2022, when Furie personnel met with division staff and provided a technical presentation covering the detailed assessment performed during the 2021 POD period.
• Furie will provide a confidential pre-application technical presentation to the division by no later than July 31, 2022, detailing with specificity the progress made on the subsurface description of the KLU along with any other activities undertaken by Furie related to further development of the KLU and exploration activities.
Furie asked for an extension due to the inability of Furie and division personnel to meet prior to the end of July. The pre application technical presentation was held Sept. 8, 2022.
• Furie will submit complete participating area, or PA, applications to the division by no later than Aug. 31, 2022.
Furie requested an extension to this deadline also, in conjunction with the delay of the pre-application technical presentation. The final PA application was submitted Oct. 4.
Possible unit expansion For the ninth POD Furie plans to continue efforts ongoing from the eighth plan, specifically:
• Continue development of natural gas reserves in the KLU.
• Continue efforts to optimize production, enhance safety and minimize environmental footprint of KLU related infrastructure.
• Continue progress on establishing a participating area along with possible unit expansion.
• Evaluate drilling of additional wells and/ or sidetracks in the KLU.
In closing, Hendrix said “Furie continues to believe there is significant development opportunity within the Kitchen Lights unit that has the potential to provide clean, reliable energy for Alaskan residents for future years.”
| 