The local subsidiary of Kansas-based Alaska Venture Capital Group drilled the onshore North Tarn No. 1 well this past winter two miles west of the Kuparuk River unit. The 6,223-foot well encountered oil-bearing sandstones, but well control challenges kept the companies from testing the well, which it plans to do this coming winter, according to a partner on the program.
Brooks Range believes its discovery -- called Mustang -- could underpin development in the region by improving the economics of several marginal accumulations. The company wants to form the Southern Miluveach unit over 60,684 acres, build independent processing facilities to serve all of those smaller accumulations and kick off a six-well exploration program between now and 2020.
The Southern Miluveach unit would cover 29 state of Alaska leases west of the Kuparuk River unit, including six owned jointly with the Arctic Slope Regional Corp.
"The other potential hydrocarbon accumulations are currently believed to be marginally economic and would not be developed without existing infrastructure and a processing facility within (Southern Miluveach)," Brooks Range wrote in its application to the Alaska Department of Natural Resources. "Likewise, future development of the other potential hydrocarbon accumulation within (Southern Miluveach) using the Mustang processing infrastructure will extend the economic life of Mustang production."
Brooks Range previously estimated the Kuparuk Formation at North Tarn No. 1 contained 6 million barrels of oil. The company also said North Tarn included a target in the shallower Brookian Formation that could hold 35 million barrels, but would be more difficult to produce because of complex geology.
The Brooks Range joint venture includes TG World Energy Inc. and Ramshorn Investments Inc. Kerr McGee, now owned by Anadarko Petroleum, and Eni own working interests in several leases at the unit.
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