KUVLUM NOT VIABLE AS SOLE DEVELOPMENT

Oct. 11, 1993

The Kuvlum oil discovery in the Beaufort Sea off Alaska is not commercial as a stand alone development, ARCO Alaska Inc. said last week. The strike ignited keen interest in the Beaufort Sea when ARCO last summer speculated the structure could contain as much as 1 billion bbl of oil (OGJ, May 31, p. 15). That well flowed 3,400 b/d of 34 gravity oil. The prospect covers 35,000 acres and is about 16 miles offshore and 60 miles east of Prudhoe Bay.

The Kuvlum oil discovery in the Beaufort Sea off Alaska is not commercial as a stand alone development, ARCO Alaska Inc. said last week.

The strike ignited keen interest in the Beaufort Sea when ARCO last summer speculated the structure could contain as much as 1 billion bbl of oil (OGJ, May 31, p. 15). That well flowed 3,400 b/d of 34 gravity oil.

The prospect covers 35,000 acres and is about 16 miles offshore and 60 miles east of Prudhoe Bay.

ARCO drilled 2 Kuvlum and 3 Kuvlum this year. The 2 Kuvlum, drilled to 11,125 ft about 3 miles southwest of the 1 Kuvlum discovery, found hydrocarbon bearing formations, including the reservoir tested in 1 Kuvlum. The 3 Kuvlum, 1 mile northeast of 1 Kuvlum, was drilled to 8,000 ft. It found hydrocarbons but not a commercial quality reservoir, ARCO said.

ARCO still believes the eastern Beaufort has commercial potential, explaining that is why it and Phillips Petroleum Co. are pressing ahead to test the Wild Weasel prospect, 6 miles south of Kuvlum, as soon as possible. The Canmar Kulluk arctic semisubmersible is expected to be on the hole through early November.

Kuvlum partner Union Texas Petroleum Holdings Inc. will record a $25 million writeoff of its investment in the third quarter.

Other Kuvlum partners are Phillips, Total, and Murphy Oil Corp.