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Alaska oil industry in focus amid 6bn barrel discovery

Wednesday, October 5, 2016 6:29
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(Before It's News)

Alaska has another very large new conventional oil discovery, according to Caelus Energy, a privately owned oil firm that has drilled two wells this year.

Caelus said it had made a “significant light oil discovery’ in shallow arctic (frozen) waters in Alaska’s North Slope region.

Based on results of the two wells and a seismic programme Caelus estimates the Smith Bay oil discovery in the order of 6bn barrels within its leasehold area. It adds that the broader play, referred to as the Smith Bay fan complex, could exceed 10bn barrels.

Significantly, Caelus says a recovery factor of 30-40% could be possible due to the “favourable fluids” it has observed.

Caelus said a development of Smith Bay could deliver some 200,000 barrels of oil per day,

“This discovery could be really exciting for the State of Alaska,” said Jim Musselman, Caelus chief executive.

“It has the size and scale to play a meaningful role in sustaining the Alaskan oil business over the next three or four decades.”

Detailing its new discovery Caelus Energy revealed that two wells Caelus-Tulimaniq 1 (CT-1) and CT-2 targeted a large Brookian fan complex, believed to span 300 square miles. This target was confirmed in both wells.

Each well measured gross hydrocarbon columns in excess of 1,000 feet. Some 183 feet of net pay was measured in CT-1, while in CT-2 there was 223 feet.

Caelus said seasonal time constraints prevented either well form being flow tested, but subsequent analysis confirmed the presence of reservoir-quality sandstones containing light oil, between 40-45 degree API gravity.

The company now plans an appraisal programme to include a new well and new seismic.

Story by ProactiveInvestors

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