By OGJ editors
HOUSTON, Nov. 20 -- Unocal Corp. Thursday reported making a natural gas discovery at its Happy Valley prospect about 7 miles southeast of Ninilchik on Alaska's Kenai Peninsula. The discovery well found 110 ft of gas pay and was followed by a successful appraisal well, the independent said.
Unocal approved development of Happy Valley field, in which it holds 100% working interest, and said it will likely drill three development wells there next year.
Average production from the field is expected to be 20-25 MMcfd during 2005 with first production expected for fourth quarter 2004. Happy Valley field is estimated to hold about 75-100 bcf of recoverable gas. Finding and development costs are averaging Unocal about 50¢/Mcf, the company said.
Sale of the gas will be made under a contract signed in 2000, which will cover the first 450 bcf of gas that the company can deliver.
This discovery, the second for Unocal in its exploration program on the southern Kenai Peninsula, follows another find made with Marathon Oil Co. of the Ninilchik Unit in 2000, which is currently on production.