STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

333 West Seventh Avenue, Suite 100

Anchorage Alaska 99501

Re:

THE APPLICATION OF Forest Oil Corporation for an order granting an exception to spacing requirements of Regulation 20 AAC 25.055 to provide for the drilling and operation of the Redoubt Unit No. 7 Oil Production Well.

)
)
)
)
)
)
)
)
)
Conservation Order No. 513.000

Redoubt Shoal Field
Redoubt Unit
Redoubt Shoal Undefined Oil Pool
Redoubt Unit Well No. 7

March 5, 2004

IT APPEARING THAT:

1. Forest Oil Corporation (“Forest”), by letter dated September 22, 2003 and received by the Alaska Oil and Gas Conservation Commission (“Commission”) on September 24, 2003, requests exception to the drilling unit and well spacing provisions of 20 AAC 25.055 to allow drilling and operation of the Redoubt Unit No. 7 (“RU #7”) oil production well to a location that lies within 1000 feet of, and within the same governmental quarter section as, wells capable of producing from the same undefined oil pool.

2. The Commission requested additional information from Forest on September 25, 2003 and November 17, 2003. Supplemental information was received from Forest on December 18, 2003.

3. Notice of opportunity for public hearing was published in the Anchorage Daily News on December 22, 2003 pursuant to 20 AAC 25.540.

4. No protests to the application or requests for a public hearing were received.

FINDINGS:

1. The RU #7 production well will be drilled as a deviated hole with a surface location 1960 feet from the south line and 272 feet from the east line of Section 14, T7N, R14W, Seward Meridian (“SM”) to a bottom hole location 2000 feet from the north line and 1750 feet from the east line of Section 19, T7N, R13W, SM.

2. The productive interval and bottom hole location of RU #7 lie within State Lease ADL 374002, which has been committed in its entirety to the Redoubt Unit. The productive interval and bottom hole location are more than 500’ away from the nearest lease and unit boundaries.

3. Well spacing in Section 19 is regulated by the statewide spacing requirements of 20 AAC 25.055, which states in subsection (a)(3):

“…if oil has been discovered, the drilling unit for the pool is a governmental quarter section; not more than one well may be drilled to and completed in that pool on any governmental quarter section; a well may not be drilled or completed closer than 1,000 feet to any well drilling to or capable of producing from the same pool…”

RU #7 will be the second oil producing wellbore within the northeast governmental quarter section of Section 19, and it will lie 800 feet from the producing interval in the Redoubt Unit No. 6 well. RU #7 will be the third oil producing wellbore within the northwest governmental quarter section of Section 19, but it will lie more than 1000 feet from the producing interval in the Redoubt Unit No. 1 and No. 2 wells.

4. The location of the RU #7 well was selected as the most favorable structural position to optimize recovery of oil reserves in the Hemlock Formation that may not be recovered by existing wells due to faulting and structural location.

5. Offset landowners, owners and operators within 1,000 feet of the anticipated production interval of the RU #7 well have been notified.

CONCLUSIONS:

1. An exception to the well spacing provisions of 20 AAC 25.055 is necessary to allow the drilling and operation of the RU #7 production well.

2. Granting the requested spacing exception for the RU #7 well will promote more efficient recovery of oil reserves and will not result in waste or jeopardize the correlative rights of adjoining or nearby owners.

NOW, THEREFORE, IT IS ORDERED:

Forest’s application for exception to well spacing provisions to allow the drilling and operation of the RU #7 production well is approved.

DONE at Anchorage, Alaska and dated March 5, 2004.

John K. Norman, Chair
Alaska Oil and Gas Conservation Commission

Daniel T. Seamount, Jr., Commissioner
Alaska Oil and Gas Conservation Commission


Conservation Order Index      Home      Webmaster