Eni takes keys at Oooguruk
Caelus Natural Resources will be out of Alaska, at least as a production operator, effective July 31, when it turns over the keys for the company’s small Oooguruk field, which is producing, to Eni Oil and Gas which has purchased Oooguruk. Eni now owns the nearby Nikaitchuq field. Caelus has also sold Nuna, a small nearby oil deposit, to ConocoPhillips, but the deal has not closed. A few employees of Caelus will remain for a limited time. Eni plans to drill more production wells at both Oooguruk and Nikaitchuq to bring total production from both to 30,000 barrels per day, up 5,000 barrels per day from the current combined output.
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Small slope fields to start up
Panetheon Resources now plans to have early production from its Alkaid/Phecda project underway in mid-2020. Alkaid/Phecda are south of Prudhoe Bay virtually adjacent to the Dalton Highway, which makes year-around access possible. Pre-application meetings with state and federal agencies have been competed. Estimated recoverable reserves are 90 million to 100 million barrels with about 1 billion barrels estimated in place in the reservoir rock. A nearby deposit, Talitha is estimated to hold 900 million barrels in place with a similar projected oil recovery. Pantheon plans to initially use mobile production units to process up to 1,500 barrels per day expected from four wells initially drilled. Panetheon purchased the assets of Great Bear Petroleum.

In another development, Brooks Range Petroleum plans to have its small Mustang project in production by early September. The company will begin production with 1,000 barrels per day from one well and then expand with a lateral “sidetrack” from an existing well to increase production to 2,000 barrels per day to 3,000 barrels per day.
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North Slope oil production ended state Fiscal Year 2018 with an average of 499,193 barrels per day, down state forecasters’ estimate of 511,400 barrels per day in the state’s March, 2019 spring revenue forecast and 526,800 in the state’s fall forecast in December, 2018. One factor lowering the 2018 fiscal year average was that the Nikaitchuq field on the slope operated by Eni was down for an extended period. The 2020 average is expected to climb with Hilcorp Energy’s new Moose Pad project in production. State officials also said that warmer winter temperatures on the slope, a likely effect of climate change, impairs operations efficiency.
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Furie gas production restored
Furie Operating Alaska has restored some, but not all, gas production at its Kitchen Lights offshore production facility after encountering problems with producing wells and proving up gas reserves needed to service contracts. The company is now serving Homer Electric Association but not fully Enstar Natural Gas, another customer. Furie is one of several small producers negatively affected by the state’s failure to make payments on commitments for exploration and development tax credits.
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AGDC China deal: It’s over
Alaska Gasline Development Corp. is downsizing its staff by 60 percent, to eight people, as it focuses on completing work on a U.S. Federal Energy Regulatory Commission certificate for the Alaska LNG Project. The FERC certificate is expected next year. Joe Dubler, AGDC’s CEO, and Frank Richards, vice president, will be the only executive-level officials remaining full-time. The decision also means AGDC’s efforts to negotiate a big LNG deal with Chinese companies has ended. In fact, all commercial marketing has ended.

Oil Search aims for 2022 startup for large Pikka project on slope
Oil Search, the Papua New Guinea company developing the large Pikka oil discovery on the North Slope, is now aiming for a 2022 startup at about 30,000 barrels per day, with full production planned for 2024 at about 120,000 barrels per day. Oil Search is managing the project on behalf of itself and its partner, Repsol. Oil Search recently exercised its $450 million option to acquire remaining rights to the project and adjacent exploration acreage from Armstrong Oil and Gas, a Denver-based independent company that participated with Repsol in the initial exploration.

An adjacent prospect south of Pikka known as Horseshoe may be the next target for development, Oil Search official said. Horseshoe may require an expansion of Pikka facilities or its own stand-alone production facility, company officials said. Oil Search plans more appraisal drilling this upcoming winter season, with a two-rig drilling program to further evaluate potential resources in the Pikka main deposit as well as Horseshoe. The company believes there could be 1.2 billion barrels of recoverable oil in its project area.

Dunleavy hires oil consultant; petroleum taxes may be an issue again
Gov. Mike Dunleavy hired a consultant to review state oil tax policy, a signal that petroleum taxes will likely be on the agenda next year as the state continues to wrestle with fiscal problems.