Repsol and partner Armstrong Energy have made the largest U.S. onshore conventional oil discovery in 30 years in Alaska with a drilling campaign over the winter finding significant levels of oil in Alaska’s North Slope.
The contingent resources identified with the existing data in Repsol and Armstrong Energy’s blocks in the Nanushuk play in Alaska could amount to approximately 1.2 billion barrels of recoverable light oil.
The Horseshoe-1 discovery well was drilled to a total depth of 6,000 ft. and encountered more than 150 ft. of net oil pay in several reservoir zones in the Nanushuk section. The Horseshoe-1A sidetrack was drilled to a total depth of 8,215 ft. and encountered more than 100 ft. of net oil pay in the Nanushuk interval as well.
The successive campaigns in the area have added significant new potential to what was previously viewed as a mature basin. Additionally Alaska has significant infrastructure which allows new resources to be developed more efficiently.
Preliminary development concepts for Pikka anticipate first production there from 2021, with a potential rate approaching 120,000 barrels of oil per day.
Repsol holds a 25 per cent working interest in the Horseshoe discovery and a 49 per cent working interest in the Pikka Unit. Armstrong holds the remaining working interest and is currently the operator.