By Tim Bradner
Alaska Journal of Commerce

Pioneer Natural Resources Inc. began drilling Jan. 8 on Hailstorm No. 1, the first of several wells planned in the company's Storms prospect area, located south of the Kuparuk River field. The project is being pursued using the company's new lightweight Arctic Fox drill rig.

ConocoPhillips Alaska Inc. is a partner with Pioneer in the Storms leases.

Ken Sheffield, head of Pioneer's Alaska operations, said his company will participate in three wells this winter using the new rig, two of them operated by Pioneer and one by its partner, ConocoPhillips.

The new rig was built by Doyon Drilling Co. in Calgary and moved to the North Slope in early December. Pioneer said the lightweight rig is designed to be dismantled and moved over snow roads through the winter drilling season, allowing more wells to be drilled in a single season. With conventional rigs, which are heavier, thicker ice roads are needed, which take more time to construct.

Sheffield also said Pioneer is still waiting on U.S. Army Corps of Engineers permits for its planned Oooguruk offshore development, in shallow Beaufort Sea waters north of the Kuparuk River field. If permits are received in time, the company hopes to mobilize and begin construction of an artificial gravel production island this winter, the company said. A six-mile subsea pipeline would connect the production island to onshore processing facilities. Oooguruk would produce 18,000 to 20,000 barrels per day at its peak, Pioneer has said.

Tim Bradner can be reached at tim.bradner@alaskajournal.com.