Three North Slope exploratory tests find oil

Repsol SA said its winter exploratory campaign on Alaska’s North Slope resulted in three “good quality hydrocarbon discoveries” whose results are encouraging for future development, but the company did not use the word commercial in its announcement.

The Qugruk-1 and Qugruk-6 wells, about 3 miles apart along the Beaufort Sea shore, produced two hydrocarbons shows, with encouraging results during production tests.

The Qugruk-3 well, 7 miles inland from the other two wells, identified hydrocarbons at multiple levels, Repsol said. The company said the Q-1, Q-3, and Q-6 wells reached depths of 2,493 m, 3,214 m, and 2,637 m, respectively, but didn’t provide names of the oil formations.

“These results are encouraging for the future development of the resources discovered,” Repsol said. “Recent tax reform passed in Alaska was a critical factor in ensuring the development of this project, where extreme climate conditions and geographical remoteness result in high operating costs.”

Repsol operates the discovering group with a 70% stake, together with US companies 70 & 48 LLC, a subsidiary of Armstrong Oil & Gas, 22.5%, and GMT Exploration Co. 7.5%.

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