ConocoPhillips Alaska said last Friday it made a new oil discovery in the northeast portion of the National Petroleum Reserve – Alaska.
The discovery was made in the Greater Mooses Tooth (GMT) Unit by the Willow discovery wells, Tiŋmiaq 2 and 6.
Tiŋmiaq 2 encountered 72 net feet of pay while the Tiŋmiaq 6 well encountered 42 feet of net pay in the Brookian Nanushuk formation.
Both wells were drilled in early 2016.
ConocoPhillips has a 78 percent working interest in the discovery and Anadarko Petroleum holds a 22 percent interest
The two discovery wells are located about 28 miles west of the Alpine Central Facility and are located about four miles apart.
The Tiŋmiaq 2 well was tested and established “good reservoir deliverability” with a sustained 12-hour test rate of 3,200 barrels of oil per day of 44-degree API oil, ConocoPhillips Alaska said.
ConocoPhillips Alaska said that initial technical estimates indicate the discovery could have recoverable resource potential in excess of 300 million barrels of oil.
Appraisal of the discovery will start in January 2017 with the acquisition of state-of-the-art 3D seismic data.
The company said that Willow could produce up to 100,000 barrels of oil per day, subject to appraisal results and the choice of development scenario.
ConocoPhillips Alaska said that, assuming “timely permit approvals and competitive project economics,” initial commercial production could occur as early as 2023.
“Development of Willow, a potential multi-billion-dollar investment, could provide thousands of jobs during construction and could generate substantial revenue for the federal government, state, North Slope Borough, and communities in the NPRA,” ConocoPhillips Alaska president Joe Marushack said.
ConocoPhillips Alaska added that construction will begin this winter at the GMT1 drill site.
The company has estimated GMT1 will cost $900 million gross to develop and with peak production estimated at 30,000 BOPD gross.
First oil for the project is planned for late 2018.
The GMT Unit is operated by ConocoPhillips Alaska with a 78 percent interest and Anadarko Petroleum Company holds a 22 percent interest.