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88's Accumulate Energy gets okay for Hickory 1 frac, flow testing
Kay Cashman Petroleum News
On Nov. 30, Accumulate Energy Alaska Inc. received approval for the Toolik River unit, Hickory 1, frac and flow testing unit plan of operations amendment from the Alaska Department of Natural Resources' Division of Oil and Gas that the company, a subsidiary of 88 Energy Ltd., applied for on Sept. 25.
(See map in the online issue PDF)
Accumulate Energy, or AEA, is authorized to re-enter the Hickory 1 exploration well, drilled in the 2022-23 ice exploration season, and to perform a frac and flow test.
Hickory 1 is in the Toolik River unit, or TRU, approximately 30 miles south of Deadhorse in oil and gas lease 392314.
AEA plans to build a 500-foot by 500-foot ice pad connected to the Dalton Highway by a 400-foot by 35-foot ice road, with a total footprint of approximately 6 acres.
All American Oilfield Rig 111 will be used to test the well "at up to four separate intervals. Each interval will involve perforation, fracking, then flowback through a production testing skid to determine viability," the division said in its Nov. 30 approval.
All buildings used for the project will be temporary. Facilities located on the ice pad to support the project will include a camp, storage and laydown areas, communications tower, connexes and maintenance shops. The camp will be equipped with offices, a medic/camp clinic, bathroom facilities, dining area, kitchen and food storage facilities, recreation area, and laundry facilities.
Ultra-low sulfur diesel fuel will be trucked to the project site by commercial carriers and stored in four 9,980-gallon tanks on pad as needed to support operations. Fuel storage, handling, transfers, and spill reporting will be conducted in accordance with AEA's Oil Discharge Prevention and Contingency Plan, North Slope Environmental Field Handbook, and the Alaska Safety Handbook, the division said in its approval.
Spill response equipment will be staged on location and managed by an onsite spill technician contracted through Alaska Chadux Corp.
Up to 4,000 barrels of drilling waste will be generated during drilling and hauled and disposed by injection in an offsite Class I or II UIC disposal well.
AEA does not intend to store drilling waste on site. Household hazardous wastes generated from camp operations will be combined with domestic wastewater and temporarily stored in the camp sewage tank modules before being hauled to the wastewater treatment plant for disposal, the division said in its approval.
All other wastes generated on site will be managed in satellite accumulation areas, manifested and then transported to approved disposal or recycling facilities at the completion of field operations.
During operations, up to 5,000 gallons per day of potable water will be required for domestic use. Potable water will be transported to the camp and rig pads by water truck.
For other fresh water uses, AEA has temporary water use authorizations from DNR's Division of Mining Land and Water, for withdrawal of ice chips and water from area lakes.
The Hickory 1 frac and test project is expected to begin Jan. 15 and be completed by tundra closing or mid-April, the division said in its Nov. 30 approval.
Stick picking and site inspection will occur during the following summer.
Tundra travel and ice construction will be permitted separately through LAS 34367.
Plan activities include the following:
*Construct ice pad and driveway
*Re-enter Hickory 1 well
*Frac and flow tests
*Stick picking
*Closeout site inspections
Hickory 1's location is at Meridian: Umiat Township: 5N Range: 14E Section: 19 69.77933, -148.71768 NAD83.
Review and comment The division provided a review and comment opportunity for the activities considered for the authorization under this decision. The following government entities were notified on Oct. 9, for comment on the plan: Alaska Department of Transportation, U.S. Army Corp of Engineers, Alaska Department of Environmental Conservation, Alaska Department of Fish and Game, DNR's Division of Mining, Land and Water and DNR's Division of Oil and Gas, and the North Slope Borough.
The comment deadline was 4:30 p.m. Alaska time on Oct. 23. One comment was received and resolved without modifying the plan.
A certified As-Built Survey of the activity must be provided by AEA within one year of placement of the improvement. This As-Built must contain a hard copy, as well as a digital GIS file containing a shapefile or ESRI Feature Class to protect the State's interest. The division found that it is necessary to incorporate the following project-specific stipulations:
1. AEA must coordinate with Red Mountain Consulting LLC, to ensure that any summer activities do not conflict with ongoing trench rehabilitation efforts in the vicinity.
2. Exploration phase reporting. While active exploration operations authorized by this permit are being conducted, the applicant will provide a bi-weekly report to the division summarizing activities undertaken and their location within the permit area. The frequency and the substance of these reports may be modified to the satisfaction of the division, as needed.
This approval signifies only that the state of Alaska has no objection to the operations outlined in the plan amendment application. It does not constitute certification of any property right or land status claimed by AEA nor does it relieve the applicant of responsibility to obtain approvals or permits from other persons or governmental agencies that may also be required.
All stipulations contained in the original lease and subsequent plan approvals remain in full force and effect.
This approval expires on Nov. 30, 2026, if activities have not commenced.
The approval letter was addressed to Ashley Gilbert, AEA president, and 88 Energy Ltd.'s managing director.
--KAY CASHMAN
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