“Our approval of the Point Thomson to
Prudhoe Bay pipeline plan adds to the momentum of the Alaska LNG Project and
demonstrates the commitment of the Point
Thomson working interest owners to move
gas from Point Thomson into Alaska Gasline
Development Corp.’s 800-mile pipeline,”
said Governor Bill Walker in a press release.
Walker went on to say the expansion project will increase oil production out of Point
Thomson to 50,000 barrels per day (bpd).
The Division of Oil and Gas previously
approved ExxonMobil’s plan for continued
liquid condensate production from Point
Thomson but did not approve the expansion-
related portion of the Plans of Development
(POD) due to “the conditional nature of the
expansion planning work,” according to
Chantal Walsh, director of the Division of
Oil and Gas. In her letter to ExxonMobil,
Walsh said there were too many conditions
and too much that was dependent upon the
economy and the company’s partners’ deci-
sions. There were additional factors behind
the division’s denial of the expansion POD
including the state’s belief that ExxonMobil
was not meeting its Point Thomson develop-
ment commitments, as per the Point Thom-
son Settlement Agreement reached between
the state and ExxonMobil in March 2012.
Walsh also said the settlement did not clearly
lay out ExxonMobil’s infrastructure plans
for the North Slope and potentially allowed
ExxonMobil to reverse course on the 2012
Point Thomson settlement with the state that
guaranteed ExxonMobil’s involvement in
developing the project.
In October 2017 the company addressed
the state’s issues and shortly thereafter the
Revised Expansion Project POD was ap-
proved by the state, allowing the project to
move forward.
Still, Walsh also stated in the approval let-
ter that the expansion project is expected to
move forward, regardless of potential speed
Flowback of North Tarn
1A Well Successful
By Brooks Range Petroleum
Brooks Range Petroleum Corporation successfully completed a flowback of the North Tarn #1A well in its Southern Miluveach Unit in late November. The well naturally flowed 24 degree API sweet crude from the prolific Kuparuk C formation.
The peak rate averaged 1,292 barrels of oil per day with only trace amounts of water. The independent engineering firm DeGolyer and MacNaughton estimates the economic 2P reserves in the
Southern Miluveach Unit at 33 million barrels.
North Tarn #1A was drilled to a depth of 6,197 feet and is located on the Mustang pad approximately forty miles west of Deadhorse on the North Slope. The Southern Miluveach Unit shares
a common lease line boundary with the 3 billion barrel Kuparuk River Unit and produces from
the same horizon. Mustang pad is connected to the Prudhoe Bay infrastructure via an all-season
gravel road and is adjacent to a common carrier pipeline providing direct access to the Trans
Alaska Pipeline System and the world’s oil markets. The strategic location minimizes impacts to
the environment and reduces construction costs.
The flowback confirms reservoir assumptions as well as facility design parameters, and Brooks
Range anticipates development of the new field will accelerate as a direct result. The next phase of
work includes installing an oil processing facility and drilling up to eighteen horizontal production
and injection wells.
“This recent success is very encouraging and highlights the dedicated and persistent support
invested by the Working Interest Owners, state agencies, and the contracting community,” said
Bart Armfield, CEO of Brooks Range Petroleum Corporation. “These results confirm we are on the
right track with our development plans.” R
