TG World Energy announced that its wholly-owned subsidiary, TG World Energy Inc. ("TG Alaska") and the other participants in the Alaska joint venture ("JV") have established a 2009-2010 Alaska winter drilling program. The JV participants currently plan to drill up to three wells on properties located on the North Slope of Alaska, a prominent oil fairway that includes major oil fields such as Prudhoe Bay and Kuparuk River.
The operator, Brooks Range Petroleum Corporation ("BRPC"), is in the process of securing a Nabors drilling rig for a winter exploration program that will initially be focused on drilling in the Gwydyr Bay area of the Alaska North Slope. The rig is expected to be mobilized in early January 2010, subject to ice road conditions. The first well in the program is the Sak River #1a well, designed to test a Kuparuk exploration prospect identified by proprietary 3D seismic data. The prospect is located within the joint venture's Beechy Point Unit ("Unit") which contains two undeveloped oil pools to date. TG Alaska will pay 45.7% of the well costs to participate for its 35% working interest in the Unit. Should this well be successful and reach the expected reserve potential, the projected volumes will allow for commercial development within the Unit.
Contingent on the results of the Sak River #1a well, TG Alaska may participate in a second 2010 exploration well, North Shore # 3, located in the North Shore exploration block within the Unit, with the objective of adding to the oil volumes already discovered in the two pools penetrated by the North Shore #1 and Pete’s Wicked #1 wells. If it participates in the well, TG Alaska will pay 45.7% of the well costs to participate for its 35% working interest in the Unit. The North Shore #3 well will be drilled from the existing North Shore #1 drill pad and will test an exploration prospect identified by proprietary 3D seismic data. This prospect has two potentially productive intervals, the Sag River and the Ivishak. Should this well be successful, the JV participants believe that the additional reserves will exceed the threshold required for the proposed North Shore development project, allowing the project to be completed on a standalone basis, without requiring volumes from the potential Sak River discovery.
A third exploration well is also being considered by the JV participants and details will be released, subject to successful conclusions and agreement being reached regarding this well. The timing for drilling the third well is dependent on the length of the prior two wells, but the JV partners currently anticipate that the well, if drilled, will commence in either late 2010 or 2011.
TG Alaska is a participant in a joint venture with the Alaska Venture Capital Group LLC ("AVCG"), Ramshorn Investments Inc. and Dana Petroleum PLC on prospects situated on approximately 240,000 gross acres in Alaska. The joint venture is operated by BRPC, a 100% subsidiary of AVCG.
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