Furie Operating Alaska will have busy summer in Cook Inlet

Things will be busy in Cook Inlet this summer for Furie Operating Alaska, a Houston-based independent company developing its Kitchen Lights natural gas discovery.

Furie plans to begin installation of a gas production platform and pipelines to shore this summer with hopes of having gas production late this year, according to the company’s Plan of Development filed with state agencies.

The platform is scheduled to leave Corpus Christi, Texas, in early June for Cook Inlet, and is being towed by Crowley Maritime, according to sources familiar with the project. Meanwhile, pipe that will carry the gas ashore is already en route from Asia.

The company is also under obligation to drill an additional exploration well this year, said Kyle Smith, unit manager at the state Division of Oil and Gas.

Because the Spartan 151 jack-up rig under contract to Furie will be used to assist with platform installation as well as the exploration drilling, it will be a busy summer for Spartan Drilling Co., which owns and operates the rig. The state Department of Environmental Conservation requires the well to be finished by Oct. 31.

Under the state’s rules, Furie must file and follow a Plan of Development with the Division of Oil and Gas that governs the development project, and a separate Plan of Exploration for the drilling of additional exploration wells.

Furie will produce gas initially from its KLU-3 well and is expected to drill at least two additional production wells at the platform, Smith said. The original discovery well, KLU-1, will not be used, at last for now.

The company also drilled KLU-2 and a “sidetrack,” a separate leg drilled off a well-bore from the surface, but those are some distance away and will not be used for production.

The Kitchen Lights Unit covers 83,394 acres in upper Cook Inlet and a condition of holding the acreage is that Furie continue drilling exploration wells in untested parts of the unit over the next several years, Smith said.

Furie is a privately-held company and has made no announcements of its potential reserves or the expected production rates. According to the Plan of Development, the two 10-inch pipelines built to shore are designed to each handle up to 100 million cubic feet of gas daily, or 200 million cubic feet for both, but that isn’t likely what Furie will actually produce, at least in the near-term.

The pipelines will be built southeast to tie into other facilities on the Kenai Peninsula.

Furie is also making no comments on who it plans to sell its gas to. The regional utilities in the area have their needs met until early 2018 through contracts signed with Hilcorp Energy, another Cook Inlet producer.

05/28/2014 - 9:59am