terry_antwine Member Photo

Clipped by terry_antwine

Fairbanks - Biggest Drttttng Year Yet for Cook Inlet...
Biggest Drttttng Year Yet for Cook Inlet (EDITOR'S NOTE--The following article is reprinted from the current current issue of "The Oil and Gas Journal."} The ice is out of the Cook Inlet, Inlet, and Alaska's explorers are back in greater numbers than ever before. They're starting what will prove to be the busiest busiest and costiliest year yet in one of the world's most hazardous drilling areas. Last week there were five overwater rigs at work. Two land rigs were busy at shoreline shoreline locations on holes whipstock- ed out under the inlet floor. Before the summer is out there will- be 10 offshore rigs wildcatting wildcatting in the inlet. If the problems problems are few and the drilling targets not too deep and elusive, more than 20 holes will be punched before ice again halts operations. This figure does not include the 10 or more wells which will be drilled from the two permanent permanent platform s already at work in Middle Ground Shoal field. Exploratory drilling won't be the whole story this year by far. Six new permanent platforms will be towed into the inlet and rigged rigged up, hopefully in time for winter drilling from all of them to develop last summer's discoveries. discoveries. This would mean offshore rigs after freeze-up this manent platforms to develop at .least four fields' and possibly six. Pipeliners will be busy, too, as Cook Inlet Pipeline Co. late this year starts construction of its 42-mile, big-inch line to handle handle production developing on the west side of the inlet. It's possible, too, that Pan American and its partners will decide to lay a 19-mile crossing crossing of the inlet to deliver crude from the Tyonek area to the Kenai Kenai Peninsula (OGJ, Apr. 11, p. 47). THE OUTLOOK Activity will keep picking up as the months , pass. Some of the equipment that will be working working later this year is now en Common Market Ministers Moving Ahead of Schedule BRUSSELS, Belgium (AP) -Ministers -Ministers of the European Common Common Market cleared a major hurdle Wednesday by agreeing on financing of agricultural subsidies subsidies and reforms. They also agreed to do away with the internal trade barriers on agricultural and industrial goods by July 1, 1968 -- 18 months ahead of schedule. The farm financing issue has been one of the most controversial controversial in the Common Market's eight-year history and was a major factor in the long crisis which threatened to disrupt the West European trade bloc last summer. The ministers agreed on the joint community financing of the cost of farm supports by July 1. 1967. This will apply to" all major farm products for which common common rules and prices have been set. It is expected to cover all Common Market farm produce by July 1, 1968. To raise the level of farm efficiency efficiency throughout the community, community, particularly in the most backward areas like southern Italy, the cost of farm improvement improvement will be borne partly from community funds. The means by which the six countries individually use to protect their farmers will then be replaced by a joint system and they will jointly finance subsidies. The Common Market's members members are France. West Germany, Germany, Italy, Belgium, the Netherlands Netherlands and Luxembourg. Europe Remains Possible Battleground, Admiral Says PARE (AP) -- "Despite the current preoccupation with Viet Nam, Europe remains the arena of the greatest possible confrontation confrontation with the Communists/' brought peace and stability to Europe for 20 years, allowing it to reach an unprecedented level of prosperity. The admiral said French route, and some is still being built. All six permanent platforms are now in various stages of construction, with the first due to arrive in the inlet May 15, The last drilling rig to spud this summer will be a new jack- up being built for Placid Oil Co. and due to be delivered at the mouth of the Mississippi River next month. The rig is expected expected to complete its long voyage voyage to Alaska in time to go to work about Aug. 1. The new season is bringing new operators to the inlet Atlantic Refining Co., for example, is putting putting two rigs to work to test for the first time its large holdings holdings in the Trading Bay area. This is acreage held by Atlantic before the merger with Richfield, Richfield, which has been a partner with Shell Oil Co. and Standard Oil Co. of California in earlier exploration. And Hunt Oil Co. and Placid are bringing rigs into the area for their first wildcats. The Hunt test, to be drilled from a bottom-supported submersible, will be the southernmost yet drilled in the inlet--a shallow- water location off the west coast of Kalgin island to test a 50,000-acre 50,000-acre block held by Hunt. THE LINEUP Pan American--operator for itself, Skelly Oil Co., Sinclair Oil and Gas Co., and Phillips Petroleum Co--will be the busiest. busiest. The company expects to complete complete 11 wells in the inlet, using four offshore rigs and one land rig, not counting the drilling from its Middle Ground Shoal platform. Pan Am also will be towing three permanent platforms into the inlet, setting two on the Tyonek Tyonek structure and the third between between the forelands on the South Middle Ground Shoal. Each will have the capacity to drill 32 wells through its four legs, and each will mount two rigs, a heavy drilling rig and a workover unit, which can be used also for spudding and completion. completion. Atlantic Refining Co. trill drill at least two wells, and probably more. It will spud the first about June 1 from the John C. Marthens, a jackup now en route to Alaska. For its second wildcat it will use the Wodeco IV, now nearing completion on the West Coast. The vessel is being built by Western Offshore Drilling and Exploration Co. to operate under a time-sharing agreement between between Atlantic and Mobil Oil Co. Mobil presumably will take over the vessel for a cook inlet inlet wildcat after Atlantic completes completes the first hole from it at Trading Bay. Texaco Inc. last week had run casing preparatory to testing its Nicolai Creek wildcat, a shore- based operation being whipstock- ed out under the inlet floor. This hole, west of the Moquawkie Indian Indian Reservation at the north end of Trading Bay, has been active since before freeze-up last fall. Texaco also is reported considering considering taking over one of the offsmore rigs after freeze-up this autumn and using it in an ice- free location off the southern coast of Alaska. HOT RACE ON Union Oil Co. -- operator for itself and Marathon Oil Co last week was involved in an important important race with Shell Oil Co. and its partners to complete the first hole on a structure off the West Foreland. If the structure proves productive, productive, the winner of the race will gain as a prize a highly sought discovery allowable, an Alaskan exploration incentive which cuts the royalty from 12.5 to five per cent or 22.5 cents/ bbl for $3.00 oil, for 10 years. For a 500-b/d well this could mean more than $400,000 over the 10-year period. But since the royalty cut applies to the entire lease on which a discovery discovery is drilled, the prize could run into the millions of dollars. Both companies had difficulty in spudding, principally because of the presence of huge glacial boulders, some of them 50 feet in diameter, which dot the inlet floor. Union, which spudded four times before starting a success- Peking Stepping Up Campaign Against 'Anti Party' Elements TOKYO (AP) -- Peking is stepping up a campaign against "antiparty" elements which the Red regime admits are threatening threatening its existence. In an extraordinary move, the Chinese government has disclosed disclosed that rebellious groups which seek its overthrow now exist, not only among intellectuals, intellectuals, but in youth groups, the army and even in the Communist Communist party itself. The existence of these wayward wayward elements was made clear this week in a series of officially approved articles, editorials and ·lirectives. The Red Chinese leaders admit admit that the enemies of the 17- year-old regime "are generally 'authorities' and enjoy a certain ·reputation' " -- a sign that they* may include high-ranking Communists. Communists. The disclosures of these oppo- nents came after the publication of an abject confession by Kuo Mo-jo, winner of a Lenin prize and the acknowledged leader of the country's culture. The unusual admissions could be the prelude to a purge of "rightists" far deeper than that of 1957. The Liberation Army Daily, Red China's Army paper, said on Wednesday: "The current current great struggle is being carried carried to greater depths." ful hole, got an early jump had set surface pipe by the Shell's hole was started. WHAT'S BEEN FOUND Cook Inlet discoverief *o all have been good ones. has tested leas than 1,000 All oil found is of 30 degree gravity or higher. Too, some of the field* turn out larger than they on the map. Operators generally expectthe Tyonek wells of Pan Am and Granite Point well of Mobil linked up and prove a huge underlying a structure extending southward from the shore of Moquawkie reservation. The Mobil well, in which Union interest, is believed to be on southern nose of the structure. Operators also expect to linkup between present production production of the Pan Am and groups on Middle Ground with the Pan Am discovery South Middle Ground Shoal. INVESTMENT GROWING With the expansion in announced activity since the first of year, it is now expected that the industry will spend more 3150 million in Alaska this And operators are expected spend the greatest share of sum in the Cook Inlet. If it does, this will bring industry's investment in the to the $600-mUliGn level, or more than four times the gross return since the first discovery was put on the at Swanson River nine years And if 1966 produces a summer and a late freeze, estimates of 30 wells and a million expenditure could to be modest. AUTHORIZED DEALERS CHRYSLER MOTORS CORPORATION "Say,

Clipped from Fairbanks Daily News-Miner13 May 1966, FriPage 8

Fairbanks Daily News-Miner (Fairbanks, Alaska)13 May 1966, FriPage 8
terry_antwine Member Photo

Want to comment on this Clipping? Sign up for a free account, or sign in