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Oil Search Mitquq 1 exploration well intersects 180’ Nanushuk pay
Kay Cashman Petroleum News
Oil Search said Jan. 22 that it intersected 180 feet of pay in the Nanushuk reservoir in its Mitquq 1 exploration well, which was spud Dec. 25 west of Alaska’s central North Slope. The well is at 6,885 feet.
The company is preparing to set intermediate casing before drilling ahead to the Alpine C reservoir, the well’s secondary objective.
As expected, the Nanushuk reservoir interval penetrated by Mitquq 1, which is about six miles from the proposed Pikka Nanushuk development A pad, or ND-A, is separate from Pikka’s Nanushuk reservoir.
Previously Oil Search referred to the Mitquq prospect as a “high value tieback” to “future Pikka infrastructure.”
Based on preliminary evaluation of wireline logs with pressure and fluid sample data, the well intersected 197 feet of hydrocarbon pay comprised of 17 feet of net gas pay and 180 feet of oil pay. No water-oil contact was encountered with the Nanushuk interval.
After finishing drilling into the Alpine C reservoir, the well will be sidetracked to re-penetrate and core the Nanushuk reservoir, after which it will be flow-tested to assess deliverability and to provide a more accurate estimate of pay thickness and commercial viability. Results will be available in March or April, the company said.
Stirrup to be spud soon Oil Search also said the ice pad and ice road have been completed for drilling the Stirrup 1 exploration well, and the rig is onsite, with drilling expected to start shortly.
Success at the Stirrup prospect, which is close to the Horseshoe Block southwest of the Pikka unit, “could de-risk additional fairways to underpin a possible standalone” Horseshoe development, the company previously said, noting Stirrup was a direct analogue to the Horseshoe 1 Nanushuk discovery.
If time allows, Oil Search said Stirrup 1 will also be flow-tested this winter.
Gravel laying operations have begun in support of the early civil works program for the Pikka project, the company said in the Jan. 22 announcement, noting “excellent progress is being made, with the objective of building the road to the Pikka ND-B well pad so that development drilling may commence in 2021.”
Ahead of schedule This winter’s two-well, two-rig exploration program is ahead of schedule.
“Due to detailed planning, we were able to take advantage of early cold weather and commenced drilling the Mitquq 1 well ahead of schedule. Early interpretation of the data collected to date indicates hydrocarbon-saturated, porous sands within the Nanushuk formation. The forward plan is to drill deeper to evaluate a secondary reservoir and then side-track the well to appraise the Nanushuk discovery with core and a flow test, which will help establish deliverability. The early results from the Mitquq 1 well are encouraging, but we still require further information and validation, which will be gathered over the next few months,” said Oil Search’s Managing Director Peter Botten.
“Additionally, we are pleased to have initiated laying gravel for the roads and well pads required to support early development and production operations at the Pikka unit development. This is an important milestone, as it represents our transition to development activities in anticipation of first oil in late 2022.”
Taking on a third partner According to a Dec. 18 Oil Search material progress report, Oil Search has commenced divestment of up to 15% of its 51% interest in the Pikka unit and adjacent exploration leases. This process is expected to be finalized in mid-2020, ahead of the final investment decision in third quarter.
Oil Search’s 49% partner in the area, Repsol, has made no announcement about divesting any of its Pikka interest, which is not a surprise, as the Madrid-based major has indicated it wants to increase its North Slope assets.
Lowering its ownership to 35% does not put Oil Search’s Pikka operatorship in jeopardy. Protecting its position as operator was accomplished through “a standard APIN model joint operating agreement” with Repsol that Oil Search talked about June 27 after it its buyout of Armstrong. The APIN agreement is “better suited for a major development and the introduction of a new partner,” Oil Search said.
APIN is the Association of International Petroleum Negotiators, an independent not-for-profit professional membership association that supports energy negotiators around the world.
- KAY CASHMAN
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