US independent exploration and production company Caelus Energy has announced a significant light oil discovery on its Smith Bay state leases on the North Slope of Alaska (United States).
Based on two wells drilled in early 2016, Caelus estimates the oil in place under the current leasehold to be 6 Gbl; around 80% of the Alaska estimated resources before this discovery. Furthermore, the Smith Bay fan complex may contain upwards of 10 Gbl of oil in place when the adjoining acreage is included. Due to the favorable fluids contained in the reservoir, Caelus expects to achieve recovery factors in the range of 30-40%. The Smith Bay development has the potential to provide 200,000 bbl/d of light oil which would both increase Trans-Alaska Pipeline System (TAPS) throughput volumes and reduce the average viscosity of oil in the pipeline, extending its long term viability.
Caelus is currently planning an appraisal program which will include drilling an additional appraisal well to confirm reservoir continuity, optimize future drilling locations, and ultimately increase reserves.