The wellbore was logged and cored and in late March a flow test was conducted with a single-stage stimulation. The sidetrack intersected the Nanushuk and encountered approximately 172 feet of net hydrocarbon pay, including a 29-foot gas cap. A comprehensive suite of wireline logs, pressure data and hydrocarbon samples were collected prior to the wellbore being plugged back to allow for the drilling of a sidetrack, Mitquq 1 ST1, to appraise the Mitquq 1 Nanushuk discovery. More and more oilBut those numbers are for the Pikka unit only and not the recent discoveries close to it that could be brought online with Pikka, such as the Mitquq 1 and its sidetrack Mitquq 1 ST1, which were drilled in early 2020.Īfter discovering oil in the primary Nanushuk reservoir, the Mitquq 1 well was drilled into the secondary Alpine C formation where it encountered 52 feet of net hydrocarbon pay, comprising 31 feet of net oil pay and 21 feet of net gas pay. Independently verified 2C gross reserves for Pikka 1 are 413 million barrels with total Pikka 2C gross resource at 768 million barrels, and the material resource at 968 million barrels. The development is expected to come online at a price of less than $40 a barrel and a target development IRR of less than 20%. Pikka Phase 1 involves a single drill site subsequent phases are expected to add two more drill sites and increase output to a maximum of 160,000 bpd. That much oil represents a 25% increase in flow through the 800-mile trans-Alaska pipeline system.
Still, Santos has stayed on track with Pikka, which is west of the central North Slope, meeting its mid-year FID target, while its Alaska operator Oil Search Alaska is on the ground working on Phase 1 of the Pikka project, which is expected to bring 80,000 barrels of oil online shortly after startup in 2025. When asked whether Santos or (its subsidiary) Oil Search Alaska is currently working with any potential investors interested in buying into Pikka and/or any other Alaska assets, a Santos media representative said there was no further information available at this time. In Santos’ second quarter report for the period ending June 30, the company said the “Pikka Phase 1 project in Alaska has received all major environmental and regulatory approvals and has sufficiently advanced FEED work to achieve FID-ready status, as planned.” (FEED stands for front end engineering and design and FID for final investment decision.)
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