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Mustang striding
Has drilling rig, re-start targeted for 3rd quarter, beginning of 4th
Kay Cashman Petroleum News
Mustang Holding is moving forward at a steady clip with owner Finnex's plan to conduct a multi-year onshore oil and gas project year-round in the Mustang field in the Southern Miluveach unit of Alaska's North Slope. (The unit lies between the Kuparuk River and Colville River units.)
The Mustang field re-start could be as early as third quarter or the beginning of fourth quarter, unit operator Mustang Holding's Chief Operating Officer Harry Bockmeulen told Petroleum News in a recent interview.
He also confirmed a Petroleum News rig report that said Mustang Holding has secured a rig contract for Doyon Rig 141.
"We hope to be spudding before too long," Bockmeulen said.
The company plans to re-enter and complete two Mustang Pad wells that were previously drilled but not completed, Bockmeulen said.
In a May 15 unit plan of operations amendment application, Mustang Holding said it will complete Mustang-03 and M-01B wells and re-enter existing discovery well North Tarn-1A and the M-02 well. Both endeavors were to begin July 1 and be done by Sept. 11.
When asked about the status of the permits and authorizations needed to re-start Mustang, Bockmeulen said: "The only ones we need we either already have or have been applied for and are in process."
In response to PN's question about whether Finnex was still aiming to produce 6,000 barrels of oil per day, he said "6,000 is still a good number."
In various filings with state and federal agencies, Mustang Holding has been saying total expected recovery from the field is approximately 20-25 million barrels of oil over a "field life of >20 years or beyond year 2044."
The company has also said the Mustang development targets the Kuparuk "C" sands, which Bockmeulen confirmed: "Yes, primarily. It's an extension of the same reservoir that is being produced in ConocoPhillips Alaska's Kuparuk River field."
In the May 17 Alaska Department of Natural Resources' Division of Oil and Gas public notice of the Mustang Holding, Southern Miluveach unit, Mustang Pad Operations Re-start unit Plan of Operations Amendment the division said the "project will develop in a phased approach."
Phase I will include the installation of an Early Production Facility, or EPF, "re-installation of various tanks, equipment, and production modules; re-entry of up to four existing wells and reconnection of the Mustang Pipeline."
Phase I is scheduled to start in mid-June and conclude by the end of 2024. In later phases, up to 20 additional wells will be drilled and waterflood operations will expand by the connection of the Colville Seawater pipeline and the addition of a produced water injection pump system to the EPF.
In a May 15 authorization to perform assessment and maintenance work at the Mustang Pipeline tie-in platform located south of the Mustang Pad the division said work will "consist of removing existing supports and installing a new support, installing a modified tie-in spool offset from the tie-in platform, installing equipment in two remote I/O panels, and inspecting tuned vibration absorbers (TVAs) on the pipeline. The work will require moving equipment across the tundra with an excavator and rig mats. Equipment that will be used for the project include an excavator, rig mats, rolligons, snow machines, and/or Tuckers."
The purpose of the project, the division said, is to "perform necessary pipeline maintenance to support re-start operations at Mustang Pad. Project work is anticipated to start May 17 ... and conclude in five days."
Alaska CNG app In a May 9 public notice posted by the division, the agency said it had received an AS 38.05.850 easement application on April 21, from Alaska CNG LLC requesting a non-exclusive private easement authorization to construct and operate the proposed Mustang Cama'i NG Service Line.
Specifically, the division said Alaska CNG wants to "construct and operate a four-inch diameter fuel gas line from the Mustang Pad to the Cama'i pad on the North Slope. A trench will be opened in the road, and the fuel gas line will either be buried in the road prism, or just below the road prism in the underlying tundra. The line will originate on the Mustang Pad in the Southern Miluveach unit and head east within the Mustang Road, then will turn and run southwest towards its terminus on the Cama'i pad."
Alaska CNG is requesting the authorization of a construction easement measuring 5.5 miles long and 20 feet wide, with a total area of 13.33 acres. Following construction this would reduce to an operational easement measuring 5.5 miles long and 5 feet wide, with a total area of 3.33 acres. The purpose of this project is to provide fuel gas for Cama'i pad. Construction is planned to begin July 1 and end by Sept. 30.
Bockmeulen confirmed that Mustang Holding and Ray Latchem's Alaska CNG were working together, but he said Alaska CNG was first supplying "our back-up power for our generator" to run on CNG, not diesel.
Per Mustang Holding filings "field abandonment is forecast for when total production falls below 800 barrels of oil per day."
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