Alaska approves NFU contraction deferral to coincide with POD
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Kay Cashman Petroleum News
On Nov. 21, executive Mark Landt of Vision Resources, a Gardes company, received a letter of approval from Alaska's Division of Oil and Gas regarding Vision's Sept. 6 request to defer contraction of the North Fork Unit acreage.
The Cook Inlet basin North Fork Unit, or NFU, is made up of five state oil and gas leases totaling 2,601.84 acres, and one participating area, the NFU Gas Pool No. 1. Sustained production from the NFU began in April 2011.
Effective May 1, 2021, Vision became the NFU operator.
The NFU's 10-year mandatory contraction date was originally April 6, 2021. Cook Inlet Energy LLC, on behalf of Vision, requested a delay of the 10-year mandatory unit contraction until April 6, 2022.
On April 20, 2022, the division approved a delay for the NFU until April 6, 2023, and on March 3, 2023, the division further agreed to extend and delay the unit contraction until Oct. 6, 2024.
On March 4 the division approved Vision's proposed 59th Plan of Development, or POD, for the NFU, effective March 31 until Dec. 31, 2025.
The 59th POD requires Vision to begin drilling a well in the NFU by the end of the calendar year 2025 and maintain operations to bring that well into production.
Vision is seeking capital to support drilling of a well within the NFU and requests that to support the continued exploration efforts and coincide with the 59th POD, the division exercise its authority to further extend and delay the mandatory unit contraction deadline.
Since the division has placed conditions on the currently approved POD, it is in the public's interest to delay contraction of the NFU through Dec. 31, 2025, the division said in its Nov. 21 approval letter.
Anyone with questions regarding this decision, should contact Heather Beat with the division at 907-269-8792 or via email at [email protected].
--KAY CASHMAN
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