BlueCrest Energy Activity Update, J. Benjamin Johnson CIRCAC

23 Pages·2014·3.3 MB·English

BlueCrest Energy Activity Update, J. Benjamin Johnson
CIRCAC Board of Directors Meeting – Kodiak, 9/12/2014
September 12, 2014
BlueCrest Energy – Overview
Business Highlights
 Small privately-held oil and gas development company
 Entire focus is 100%-owned oil and gas assets in the Cook Inlet basin
(Cosmopolitan Project)
 BlueCrest shareholders have invested more than $100 million to date in the
company’s Cook Inlet assets
 Experienced directors and management
 Former high-level oil industry executives (ARCO, Conoco, El Paso, Eni)
 Close personal ties to Alaska and the Cook Inlet
 Long track record of successful large field developments
 Emphasis on personnel safety and environmental sensitivity
 Alaska-based operations team
 Anchorage headquarters
 Anchor Point operations base

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Cook Inlet Legacy - Johnson home, Anchor Point (1954)
Current Alaska and Cook Inlet Focus
BlueCrest Alaska Operations LLC
Operations senior management all Alaska based
Alaska contractors where practical
Excavation work beginning September 2014
Local hiring preference for construction and operations
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Cosmopolitan Project History and Introduction
Over 1.3 billion barrels of oil and 7.6 tcf of gas have been produced from the basin, essentially all of
which was discovered by 1967 (when Prudhoe Bay was discovered)
Beluga River
1,218 BCF Anchorage
North Cook Inlet
Tyonek
1,854 BCF
Granite Point
148 MMBO+132 BCF
McArthur River
935 MMBO + 1,615 BCF
Swanson River
Nikiski 230 MMBO
Redoubt Shoal
Tesoro Refinery
ConocoPhillips LNG
Cook Inlet Basin
Kenai Loop
Gas fields
Kenai
Oil fields
Kenai, Cannery Loop
2,573 BCF
Oil pipelines
Gas pipelines
Mean Winter Ice
Southern Limit
Seward
Ninilchick
129 BCF
Seward
Cosmopolitan
North Fork
Gulf of Alaska
Anchor
20 mi. Gulf of Alaska
Point
Homer
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Cosmopolitan Project History
Pioneer finalized its development BlueCrest acquired
plan for oil wells drilled from the Buccaneer's interest in all
onshore location. Prior to the Cosmopolitan leases,
Pioneer conducted a 3D implementation of the development, thus owning 100% of all the
Pennzoil drilled the first exploration well seismic survey of the entire Pioneer's board decided to shift properties, and began
that barely penetrated the outer limit of field area. The survey capital investments to their Permian actions to develop the field.
one oil zone. The well tested 75 bopd confirmed a large clear Basin leases instead of developing Filed for re-unitization of the
and was plugged and abandoned. anticline structure. the Cosmopolitan Unit. Cosmopolitan Unit.
Pioneer disbanded the former
ConocoPhillips directionally drilled the Cosmopolitan Unit but retained
Hansen 1 well from an onshore the two main productive leases.
location 3 miles away. The Pioneer took over 100% of BlueCrest and Buccaneer
Cosmopolitan Unit was formed for the working interest. Energy began negotiating with
testing and development of the field. Pioneer for the two main
productive leases. Apache
acquired the remaining minor
productive leases.
1967 1994 2001 2003 2005 2007 2010 2011 2012 2013 2014
ConocoPhillips drilled the BlueCrest and Buccaneer
Hansen 1A well to further closed the purchase of the two
penetrate the deepest oil zone. main productive leases (75%
BlueCrest and 25% Buccaneer).
ARCO took a new look at the old Pioneer drilled the Hansen BlueCrest and Buccaneer
Pennzoil well data and concluded 1AL1 well in the highest-known drilled the Cosmopolitan
that the first well may have just oil zone at the time. The well State #1 vertical well from
missed a larger field. produced 35,000 bbls of oil. offshore, proving up six
The “Missed Pay Prospect” Pioneer could not permanently new productive gas zones
produce the well due to the and four new productive oil
lack of a gas pipeline, but zones all above the two oil
Pioneer began planning for a zones previously identified
full field development of the by ConocoPhillips and
two oil zones confirmed at the Pioneer.
time. BlueCrest/Buccaneer
acquired Apache’s leases.
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Starichkof State #1
Starichkof State Unit #1
(1967) ADL391902
(1967)
Original Discovery Well 1,109 acres
Drilled below Oil-Water Contact
N 1 Oil Zone
Cored Upper Tyonek and Star 8
E-Logs, Mud Log, DST
Cosmopolitan State #1
(2013) ADL391903
Discovery Well 3,619 acres
4 New Oil + 6 New Gas Zones
E-Logs, Mud Log, DST
Hansen #1A-L1 (2007)
Lateral drill in Upper Starichkof only
Produced 33,504 BO on test.
Currently Completed
Awaiting Facilities
ADL018790
3,959 acres
Hansen #1A (2003) Onshore
Delineation Well Surface-Use
Produced 14,851 BO on test Lease
Hemlock, Starichkof Oil Zones ADL391904 38 acres
4,036 acres
Hansen #1 (2001)
Confirmation Well
1 New Oil Zone
Hemlock, OWC, Star 5-8

3-D Seismic (2005)
40 square miles
Coverage of entire field
Approximate areal extent of and all leases ADL391899
known productive Thorough structure 5,589 acres
definition
reservoirs
1-mile
Cosmopolitan Development Plan