South Badami

On-shore, Eastern North Slope

  • Key Features
    • Project lies southwest of the Badami Unit (60 MMBO), 3.5 miles south of Liberty Unit (125 MMBO), and 1 mile north & 2 miles west of dissolved Slugger Unit (280 MMBO in place).
    • W. Mikkelsen St. #1 Well: tested 302 BOPD (26 API) from Canning Fm.
    • Mikkelsen 13-9-19 Well: returned oil in tests in Lisburne, Kemik, & Canning.
    • Red Wolf B1-38 Well: 45 MMBO in Kekiktuk; completed in Killian.
    • Alpenglow St. #1 Well: did not reach Badami productive horizons.
  • Leases
    • ADL 391534   (6/30/2017)
    • ADL 391737, 391738, 391769, 391770, 391771, 391772   (4/30/2018)
    • ADL 392137   (?/?/2022)

Geologic Summary by: D. T. Gross (3/19/2012)

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The South Badami Project is comprised of seven leases totaling 15,836 acres with an additional tract of 2,560 acres obtained in the NS 2011W Sale, giving a project total of approximately 18,396 acres. This acreage is located on the southwest side of the Badami Unit and is 3 1⁄2 miles south of the Liberty Unit. The Badami Field initially began production in August of 1998 but was shut down in the fall of 2007 and only now has re-started production. This 60+ MMBO field and has yielded 5.7 MMBO and 39 BCFG to date. The Liberty Unit is presently planning to utilize extended reach drilling in order to produce the 125 million barrels of oil assigned to its Mississippian Kekiktuk Formation. The southernmost leases of the South Badami Project (ADL 391737 & ADL391738) are located within one mile of the defunct Slugger Unit (14 leases; 79,508 acres) that was reported to have had 280 MMBO of inplace reserves in its Friezen Prospect. The project acreage also abuts the western quadrant of the Greater Bullen Unit, proposed by Brooks Range Petroleum Corporation in March, 2011. These 68 leases covering 200,179 acres would have incorporated the old Slugger acreage along with leases to its north, up to and between the Badami and Point Thomson unit boundaries. It appeared that the unit proposal was an effort to evaluate targets deposited upon the Lower Cretaceous Unconformity similar to the Point Thomson sand and the Kemik Sandstone, the untested objective of the Slugger unit. Other targets may have been the older Mississippian Kekiktuk Conglomerate or younger Tertiary turbidite sands, both productive in the Badami Field. In October of 2011, BRPC abandoned its unitization efforts at Greater Bullen and relinquished its leases with 2012 expiration dates. In the December NS 2011W Sale, ConocoPhillips captured 20 tracts (approx. 51,200 acres) that lie immediately south of the South Badami Project and that incorporate what was the northern portion of Slugger and the west-central portion of Greater Bullen.

The Badami Field was discovered in 1990 by Conoco when their Badami #1 well drilled to 13,595’ MD (12,911’ TVD) and had a drillstem test of over 4,000 BOPD from Brookian turbidite sands (Tertiary). These pay sands were encountered between 9,500’ and 11,500’ MD and were described as being very fine-to-fine grained and moderately sorted with porosities of 15-21%, permeabilities of 1-400 md, and oil gravity of 21-30 degrees API. Original recoverable reserves in these turbidites were placed at 120 MMBO, but were reduced to 60 MMBO after subsequent drilling and production showed that the reservoir sands are complex, consisting of 61 identified fans laid down during seven depositional events. The field was shut-in in 2007 when production dropped to 1,300 BOPD from six straighthole wells. In 2008, Savant (90%) and ASRC (10%) formed a deal with BP in which Savant would drill one new development well (#B1-18A horizontal sidetrack) and one exploration well (Red Wolf #B1-38). The exploration well found oil in its primary objective (Kekiktuk Formation) and in a shallower secondary objective (Late Cretaceous Killian sands). Despite a reserve estimate of 45 MMBO for the Kekiktuk accumulation found in the #B1-38 well, the Killian horizon was selected to be part of the re-start production which included the new #B1-18A redevelopment well and four previous producers. Savant projected that the combined production from all six wells would eventually be more than 4,000 BOPD. (The November, 2011 daily production stood at just over 1,000 BOPD.) Presently, Savant has a workover rig operating on the #B1-21 well which will move next to the #B1-16 well. They have also recently obtained a rig in order to drill the Red Wolf #2 well, a 12,000’ straighthole test of the Kekiktuk Formation on the northwestern side of the unit and outside of the Badami Sands PA.

The Slugger Unit was formed in April of 2001 and contained 79,508 acres within 14 leases. BP Exploration Alaska’s objective in the unit was the L. Cretaceous Kemik sandstone. Seismic data showed dipping reflectors above basement that were interpreted to be siliciclastic units of the Kekiktuk Conglomerate or carbonates of the Lisburne Group (Carboniferous). These in turn were eroded by the Lower Cretaceous Unconformity and formed sites for the deposition of the coarse-grained Kemik Sandstone. The terms of the unit approval required that BP drill two wells within the unit, the first by May of 2003 and the second a year thereafter, and that these wells must penetrate and evaluate the Kemik. No wells were drilled and this resulted in the termination of the unit in May of 2003.

Aside from the above discussed wells, there are three key wells on or adjacent to the South Badami Project leasehold. The W. Mikkelsen State #1 lies approximately one mile north of the ADL 391534 lease and one mile east of the ADL 392137 lease, as well as two miles west of the Badami Unit boundary. The well was drilled by ConocoPhilips Alaska in November of 1978 to a depth of 15,620’ MD (TVD) in order to test the strata down through the Mississippian. Nine conventional cores were taken: two in the L. Cretaceous Kemik sandstone (11,236’-309’); four in the Carboniferous Lisburne (11,309’-733’); and three in the Mississippian Kekiktuk Formation (13,700’-748’ and 14,048’-079’). Tests yielded no fluids from the Kekiktuk and only a small amount of oil and gas from the Lisburne, but the Tertiary Canning Formation flowed 26 degree API oil at a rate of 302 BOPD.

The UNOCAL Alpenglow State #1 lies approximately one mile west of the ADL 391534 lease and one mile south of the ADL 392137 lease. Drilled in January of 1992 to a depth of 8,761’ MD (TVD), the well was designed to test pinch-out sands in the Tertiary Sagavanirktok Formation updip from the W. Mikkelsen State #1 well and downdip from the Texaco Kad River #1 well. The underlying and laterally equivalent Canning Formation, the main productive unit in the Badami Field, was not an objective and only the upper 456' of the formation were penetrated by the well. A conventional core was recovered from the Tertiary Sagavanirktok (8,134’-8,167’) but proved to be wet. However, this 30’ core of mudstone to coarse sandstone did display excellent reservoir properties with porosities up to 27% and permeabilities up to 4,220 md. Erosional bedding contacts were noted in this core with pebbles of chert and argillite up to 2.5” in diameter.

The Mobil Mikkelsen Bay State 13-9-19 well lies one half mile from the southwestern border of the Badami Unit and one half mile from the eastern boundary of the South Badami Project’s ADL 391769 lease. The well was drilled by Mobil in September of 1970 to a depth of 16,595’ MD (TVD) and penetrated 55’ into the basement argillite. Twenty conventional cores were taken from 10,564’ MD to bottom, sampling the strata of the Canning Formation, Hue Shale, Pebble Shale, Kemik Sandstone, Lisburne Group, Kayak Formation, Kekiktuk Formation, and the pre- Mississippian basement. The eight drillstem tests taken in the well confirmed the presence oil from the Lisburne up into the Canning Formation. In the Lisburne, DST #3 recovered 25 barrels of oil, 29 barrels of oil and water, and 61 barrels of water (11,870’-12,800’ MD). DST#4 returned 22 barrels of mud and oil (22 API) with 174 barrels of water (11,870’-12,200’ MD). In the 100’ of L. Cretaceous Kemik strata directly above the Lisburne, DST #5 recovered 900’ of gas with 6 barrels of water from five feet of perforations and DST #6 recovered 24 barrels of 31 API oil, 104 barrels of water, and some gas from seven perforated zones. In the Canning Formation, DST #7 recovered 45 barrels of 30 degree API oil and 76 barrels of water (10,468’- 10,550’ MD).

As shown by a Canning Formation structure map provided to the AOGCC, the hydrocarbon accumulations within the Badami Unit are stratigraphically trapped within submarine fan sands that dip to the northeast. As a result, on the South Badami Project leasehold it is possible to move several hundred feet structurally updip from the accumulations and shows seen in the W. Mikkelsen State #1well and Mikkelsen Bay State 13-9-19 well. It is critical to note that the Alpenglow State #1 well barely penetrated the Canning Formation and therefore did not evaluate the productive intervals of the Badami Field. Furthermore, the oil accumulations seen in the deeper Lisburne may improve as one moves to the southwest onto the project’s leases. Additionally, the Mississippian Kekiktuk Formation should not be condemned by one poor test in the W. Mikkelsen State #1 well because the Mikkelsen Bay State 13-9-19 lost 250 barrels of drilling mud at 14,750’ MD, suggesting the possibility of good porosity and permeability at this horizon on the project acreage.