Furie Operating Alaska is now producing natural gas from Nikiski’s Kitchen Lights Unit.
Vice President Bruce Webb says the offshore mini-monopod, named the Julius R. Platform, was installed this summer along with 16 miles of subsea pipeline completed and tied into Hillcorp’s KBPL pipeline.
Webb: “We are producing about 4 million cubic feet of gas per day right now and selling it to a third party that doesn’t want to be disclosed. The plan is over the next month to ramp production up to 10-15 million cubic feet per day and get ready to start selling gas to Homer Electric on April 1, 2016.”
Furie and Homer Electric Association signed a Gas Sale and Purchase Agreement in September which commits HEA to purchase between 4 and 6.2 billion cubic feet of natural gas annually. HEA previously stated they anticipate the agreement to help lower customer costs.
Webb says the production is great news and the company is looking forward to more exploration next year.
Webb: “We’ll either drill one or two more development wells at the Julius R. Platform, and we may go and reenter the Kitchen Lights Unit No. 4 well that’s about six miles north of the Julius R. Platform, that’s an oil and gas prospect. We want to reenter that and drill to about 20,000 feet, it will be the deepest well in the Cook Inlet.”
He says final decisions are still being made on those plans.
