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BlueCrest advancing plans, files 11th POD, has investor interest
Kay Cashman Petroleum News
BlueCrest Alaska has filed its 11th plan of development for the Cosmopolitan unit in the Cook Inlet basin with the Alaska Department of Natural Resources' Division of Oil and Gas Sept. 30.
Four state leases are involved with the plan of development, or POD, running from Jan. 1, 2025, through Dec. 31, 2025.
Under the previous calendar year and 10th POD, BlueCrest actively pursued the investment required to restart its onshore oil and gas drilling program and the Offshore Tyonek Gas project.
BlueCrest said it has been difficult to obtain investment in Alaska, particularly the Cook Inlet basin. The passage of House Bill 50 this year and the expressed willingness of the Alaska Industrial Development and Export Authority, or AIDEA, to have the state of Alaska participate in the funding of the Cosmopolitan assets has "recently opened the door" to new funding by large investors.
Along with third party funding, it will be essential for the state Legislature to appropriate the necessary funds for AIDEA "to fund our project and others in the inlet," BlueCrest said, adding it has already completed a substantial amount of work and invested large sums of capital to prepare for the upcoming oil drilling program and the development of the Offshore Tyonek Gas project.
The company has been working to make sure that it has all the permits for both projects.
11th POD activities BlueCrest's 11th POD drilling plans are contingent on raising the necessary funds.
BlueCrest is working with a large investment firm to secure these funds.
The company is hoping to drill the H-10 Trident Fishbone well during the 11th POD period and advance the Offshore Tyonek Gas project to bring production on by the end of second quarter 2027.
Drilling is expected to begin at the end of 2025.
BlueCrest will update the division on both its drilling program and the Offshore Tyonek Gas project in separate letters by June 30, 2025.
Well work evaluation BlueCrest continues to work on wells and production facilities to maximize production levels and to extend the lives of those wells and facilities.
The company also plans to continue Hot Oil treatments on the Hansen 1AL1, H4, H12, H14, H16a, with its own Hot Oil equipment every three or four weeks.
Finally, BlueCrest continues to look for ways to lower costs and improve the efficiency of the production plant.
Long-term plans In regard to long-term plans BlueCrest expects to continue to develop the Starichkof / Hemlock oil reservoirs based on new information obtained from each new well, beginning with the H-10 Trident Fishbone.
Even longer-term plans include drilling to the Lower Tyonek oil zones.
BlueCrest's Hansen averaged 978 thousand cubic feet per day in August, down 75 mcf per day, 7.11%, from a July average of 1,053 mcf per day and down 2.68% from an August 2023 average of 1,005 mcf per day.
The 11th POD was filed and signed by BlueCrest President and Chief Operating Officer John M. Martineck.
Unit particulars The Cosmopolitan unit's oil zones were developed from an onshore pad located on the southern Kenai Peninsula. Production is primarily oil but there is an associated gas component to it.
Accessed from its onshore pad using directional drilling, its wells extend from the pad under Cook Inlet into state of Alaska submerged lands, although no offshore facilities exist.
Production is processed on-site, and oil is trucked off location.
Cosmopolitan production averaged 643 barrels per day in August, down 1% from a July average of 649 bpd and down 8.56% from an August 2023 average of 703 bpd.
The H-10 Trident well will be a multilateral well that will allow BlueCrest to drill the equivalent of 21-24 oil wells on 800-foot spacings.
The Cosmopolitan unit's Hansen field is 3 miles offshore and 5 miles north of the community of Anchor Point.
State leases ADL018790, ADL384403, ADL391903, and ADL391904 make up the unit.
--KAY CASHMAN
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