Bow Valley Energy Ltd. declares the Tofkat No. 1 well (Bow Valley 20%) on the North Slope of Alaska discovered oil bearing sandstone reservoir in the primary target, the Kuparak formation.
The Kuparak formation is productive in the area at the nearby Nanuq field approximately five miles to the northwest. The discovery was confirmed through log analysis and testing with an MDT tool, which showed an interval of ten feet of gross pay, six feet of net pay, comparable to the Nanuq field. No oil/water contact was observed and no production test was attempted or performed. The discovery well is interpreted to be near the edge of an accumulation and two sidetrack appraisal wells were drilled which established the edge of the reservoir. The wellbore is currently plugged back to the bottom of the surface casing and the well will be suspended for possible re-entry and twinning as a future production well.
The joint venture partners are acquiring approximately 210 square miles of 3D seismic over the prospective area which will be used to evaluate the extent of the accumulation. The 3D seismic will be processed and analyzed in mid to late 2008, in preparation for an appraisal drilling program in the 2009 winter drilling season. The 3D seismic will also be used to evaluate uphole potential in the Brookian aged formations encountered in each of the wellbores.
At Northshore, mechanical problems have hindered the evaluation of the Sag River formation. Operations are ongoing to evaluate the formation this season. Oil from the Sag River has been confirmed with oil recovered at surface; however no production or flow test has been achieved. In February 2008, the Northshore No. 1 well tested at a final stabilized rate of 2,092 barrels of oil per day of 34 degree API oil from the Ivishak formation.
R. G. Moffat, President and CEO of Bow Valley said: "We are excited about our second success in as many years in Alaska. The Tofkat discovery needs further evaluation to determine commerciality, but there is significant production from this zone in the area. We will evaluate the 3D seismic and we plan to appraise this discovery at the first opportunity."