The Mitquq 1 ST1 and the Stirrup 1 wells were both digged, logged, cored and flow tested, which included a clean-up and flow period and a pressure build-up before the final flow test to assess deliverabilities.
At Mitquq 1 ST1, located nine-kilometres east of the proposed central processing facility of the Pikka Unit Development, Oil Search encountered a net pay zone of 52.5m with a gas cap of nine metres. The well flowed at a rate of 1730 barrels of oil per day (bopd) from a single stimulated zone.
Stirrup 1, located 12km west of the Horseshoe discovery well and 35km southwest of the proposed Pikka Unit development infrastructure, encountered an oil column with a net pay of 23m. The well flowed at a rate of 3520 bopd from a single stimulated zone.
Oil Search has gleaned important geological data and well productivity of Nanushuk and managing director Keiran Wulff said the company was pleased with the success of the Alaskan exploration program.
“We now have a strong understanding of the geology and potential productivity of the prolific Nanushuk play that underlies our portfolio of leases on the North Slope, which could add substantial resource and value to the Pikka Unit Development,” he said.
Oil Search has begun demobilising its crew, but will delay a final investment decision subject to improving market conditions.
“The additional time will allow further value engineering and optimisation of the development to take place, with a focus on reducing the break-even of the project, and the integration of the results of the Mitquq and Stirrup wells,” Keiran said.
“While further appraisal will be required, these new discoveries may represent low-cost tie-back options to the proposed Pikka Unit Development,” he added.
The company believes it is capable of minimising capital expenditures in Alaska during a period of headinds in the oil and gas industry.
Oil Search does not have drilling exploration planned for the 2020-21 winter season and said it would focus on maintaining capabilities, advancing work needed to comply with permitting obligations and pursuing opportunities to minimise costs and add value to the Pikka Unit Development.
“This will enable the company to respond quickly when oil prices improve. The company remains committed to progressing the Pikka Unit Development,” Keiran said.
“Given the proximity of our acreage to existing infrastructure and the proven prospectivity of the Nanushuk play, we remain very excited about the opportunities for Oil Search in Alaska and are well prepared to deliver the world class Pikka Unit Development when market conditions improve.”