Oil production from the Southern Miluveach unit on Alaska's North Slope began at 5:30 p.m. on Dec. 29 and was expected to begin flowing into the Alpine Pipeline on New Year's Eve, Dec. 31, Harry Bockmeulen of Mustang Holding LLC, a Finnex Operating company and operator of the Southern Miluveach unit, or SMU, told Petroleum News Dec. 31.
The latest and 11th plan of development, or POD, that was approved for the SMU on Dec.12 by Alaska's Division of Oil and Gas includes the unit's history, work undertaken during the 10th POD and anticipated activities for the 11th POD period.
The most significant work done in 2024 during the 10th POD was the successful drilling and completion of the M-03A and M-01B wells as part of the SMU phased drilling and well work activities program. Additionally, the North Tarn-1A well that was completed in 2012 was prepared to return to production.
Unit history
The SMU was formed on March 31, 2011, and currently contains five tracts covering approximately 8,960 acres.
On Dec. 4, 2020, the division approved Mustang Holding as operator of the SMU, after the previous operator and field developer, Brooks Range Petroleum Corp., defaulted on its loan agreement with the Alaska Industrial Development and Export Authority.
Despite the default initiated by AIDEA, Brooks Range was the first small independent to bring an oil field online on Alaska's North Slope, producing its North Tarn-1A well from the Kuparuk River pool for one month in 2019, a total of 10,999 barrels over a 23-day period.
The field became a wholly owned subsidiary of AIDEA due to the default. Ownership then passed from AIDEA to Finnex on Oct. 27, 2023.
Mustang Holding obtained the required environmental and operating permits necessary to resume production and development in the SMU and fulfilled the requisite bonding requirements with state agencies. During the 2024, or 10th POD period, and continuing into the 2025 11th POD period, the company reported that early process facilities, or EPFs, are being refurbished when possible, and new equipment is being installed as necessary.
SUBHEAD Phased drilling
In its June 3 application to the Alaska Oil and Gas Conservation Commission, or AOGCC, Mustang Holding said its first injection into the SMU portion of the Kuparuk oil pool was expected in the fourth quarter of 2024, with fluids injected for pressure maintenance and enhanced recovery of hydrocarbons.
The Kuparuk oil pool in the SMU is a continuation of Kuparuk C and Kuparuk A sands "adjacent to the southwest portion of the Kuparuk River Unit," Mustang Holding said.
Phase 1, which was completed in the 10th POD period, included re-installation of the production facilities, re-entering existing wells, reconnecting the Mustang Pipeline and returning the field to production.
Additional wells will be drilled in Phase 2 to keep production in the target range of 4,000 barrels per day, and will include expansion of waterflood operations, Mustang told AOGCC.
Depending on results from earlier phases, additional wells will be drilled to bring the total to as many as 11 horizontal or vertical producers and 10 horizontal or vertical injectors. The company said the EPFs would be "debottlenecked or replaced by additional facilities modules if warranted by longer term production results, reservoir performance, and potential third party or multi-horizon Mustang field development."
11TH POD
On Oct. 2, the division received the proposed 2025 SMU 11th POD from Mustang Holding.
Among others the 11th POD contains the following work commitments:
*Completion of EPF installation, including commissioning of a seawater import line for reservoir pressure maintenance.
*Completion of the 5-acre pad expansion utilizing the gravel material extracted from the SMU mine site. The expansion will allow the accommodation facilities to be relocated further from the production operations area and provide for an additional lay-down area.
*Enhancing production performance. Improved production will be tested by fracture stimulation of the Kuparuk A and C sands in the M-01B and M-03A wells, as well as fracture stimulation of the M-02 if deemed appropriate.
Additional drilling and well work activities will continue in 2026 to further appraise the reservoir and define its scope.
