Wedoany.com Report-Mar 19, APA Corp. and its partners have declared a “significant” petroleum discovery in the Lagniappe area on Alaska’s North Slope.
APA and its partners declared a 'significant' petroleum discovery in the Lagniappe area on Alaska's North Slope.
Drilled to about 10,500 feet, the Sockeye-2 well “encountered a high-quality reservoir with approximately 25 feet of net oil pay in one blocky, Paleocene-aged sand with an average porosity of 20 percent”, Houston, Texas-based APA said in an online statement.
“As compared to recent regional field analogs in the Brookian play, the porosity and permeability are both better than expected, with the permeability to be confirmed through a planned flow test”, the oil and gas explorer and producer said. “Additional zones of potential pay were also encountered in the shallower Staines Tongue formation.
“The Sockeye prospect is amplitude supported across 25,000 to 30,000 acres, and confirms the partners’ geologic and geophysical models, derisking numerous additional prospects in the area.
“Wireline logging is complete and additional data collection is underway, including acquiring core and flow testing the well”.
APA holds a 50 percent stake in the leasehold through subsidiary Apache Corp. Operator Lagniappe Alaska LLC of Armstrong Oil & Gas Inc. owns 25 percent. Santos Ltd. has the remaining 25 percent.
Sockeye-2 is the second successful exploratory well drilled by the consortium on their 325,411-acre position on state lands. The first discovery, King Street-1, struck oil in two Brookian zones.
“The Sockeye-2 well further demonstrates the potential of the play, presenting an exciting opportunity in an active area of the North Slope with significant existing infrastructure”, commented Bill Armstrong, chief executive of Armstrong Oil & Gas.
The leasehold sits east of Prudhoe Bay, one of the biggest oilfields in the United States.
In a separate statement, Santos said, “The exploration well cost is carried by APA as part of a 2023 farm-in agreement”.
On a separate upstream development in Alaska, Santos also said phase 1 of the Pikka oilfield has reached 80 percent completion.
“Pipeline installation is progressing well and set to be completed in two winter seasons, putting us in a good position to pursue acceleration to first oil around the end of 2025”, said Bruce Dingeman, Santos president for Alaska. “This will be dependent on logistics and weather allowing for the mobilization of key production models by barge up the Hay River. Until we have more certainty, guidance remains unchanged with first oil in mid-2026”.
Pikka’s phase 1 could deliver 80,000 barrels of oil a day at full production, according to Santos.
“Santos remains committed to disciplined investment in the Alaska assets to deliver value for shareholders, delivering safe and efficient operations while advancing key development milestones”, Santos said.
