Oil Search Hits Oil, Gas in Alaska

Sydney-listed Oil Search has reported striking oil and gas at its Mitquq-1 exploration well in Alaska. The well was spudded in late December, 9 km from where Oil Search plans to build a central processing facility for the Pika field on the Alaska North Slope, the company said in a statement on January 22. Its current depth is 2,099 metres.

Based on wirelog data, the well cut through a 60-metre net hydrocarbon pay, including a 55-metre oil pay and a 5-metre gas pay, Oil Search said.

“The forward plan is to drill deeper to evaluate a secondary reservoir and then side-track the well to appraise the Nanushuk discovery with core and a flow test, which will help establish deliverability,” Oil Search’s managing director Peter Botten said. “The early results from the Mitquq 1 well are encouraging, but we still require further information and validation, which will be gathered over the next few months.”

Oil Search will shortly spud a second probe nearby, Stirrup-1, with a rig already on site. The company’s goal at both wells is to find enough hydrocarbons to justify a tie-back to the Pikka project, or support a stand-alone development.

Oil Search aims to take a final investment decision on the Pikka development later this year, and launch production in 2022.