FURIE OPERATING ALASKA, LLC KITCHEN LIGHTS UNIT OVEVIEW

Transcription

1 FURIE OPERATING ALASKA, LLC KITCHEN LIGHTS UNIT OVEVIEW MARCH 21,

2 TABLE OF CONTENTS Company Overview 2011 Achievements 2012 Business Plan Strategic Plan 2

3 COMPANY OVERVIEW Furie Operating Alaska, LLC 3

4 FURIE OPERATING OF ALASKA, LLC OVERVIEW Spartan 151 is the first jack-up rig to operating within the Cook Inlet since the early 1990 s Planned exploration and development of the Kitchen Lights Unit in Offices located in Anchorage, AK and Houston, TX 4

5 2011 ACHVIEMENTS Furie Operating Alaska, LLC 5

6 2011 ACHIVEMENTS Furie Operating Alaska (formally Escopeta Oil Company), drilled KLU 1 to 8,800 feet and suspended the well for 2012 drilling season 1. Logs of the KLU 1 well at 8,800 feet show estimated production at 30 mmcfd 2. Contracted Spartan 151 jack-up rig through February 2013 with two 1- year options 3. Completed underwater acoustic measurement for drilling activities in the Cook Inlet to insure protection of the beluga whale within the critical habitat area. 6

7 2012 BUSINESS PLAN Goals for 2012 Summary Business Plan Detailed Alaskan Timeline 7

8 GOALS FOR 2012 Adopt leading safety procedures and company policies & controls Develop credibility with supply base and local jurisdictions Promote job growth within communities of operations Continued commitment to environmental stewardship 8

9 SUMMARY BUSINES PLAN Obtain Alaska Department of Natural Resources Kitchen Lights Unit (KLU) extension Drill and log 2 wells with Spartan 151 jack-up rig, mobilization in mid April Prove out reserves in Corsair block Develop drilling plan and permitting for 2013 exploratory and development wells Beginning planning, permitting, and procurement of 2013 platform (monopod) and pipelines Contract hydrocarbon marketing agreements for 2013 production Begin fabrication of platform for 2013 installation 9

10 DETAILED 2012 TIMELINE 2012 well program based upon one jack-up rig operation Drill 2 of 5 exploratory wells required for the Plan of Exploration (POE) submitted to the Department of Natural Resources (DNR) Conduct soil boring for platform (monopod) at KLU 1 and KLU 2 sites for 2013 platform installation 1/1 3/31 4/1 4/30 5/1-7/15 7/16 10/15 10/15 10/31 11/1 12/31 Engineering planning for 2013 platform and pipelines Hire additional firms in Alaska to support permitting Obtain KLU extension from DNR Obtain drilling permits Mobilize Rig 151 Procure equipment for KLU 2 Soil boring at KLU 2 for future location Soling boring at KLU 1 for future platform KLU 1: Reenter, drill to ~16,500 feet, log & suspend Move Rig 151 to KLU 2 KLU 2: Drill, log & suspend Evaluate reserves for KLU1 Demobilize Spartan 151 rig to winter layup location Evaluate reserves for KLU 2 Finalize 2013 exploration and development program Establish marketing agreements Establish contracts with all engineering firms and suppliers for 2013 Procure well equipment, platform and pipeline for

11 STRATEGIC PLAN Plan Summary Kitchen Lights Unit (KLU) Exploration Blocks KLU Detailed Plan Drilling & Development Timeline Conceptual Platform (Monopod) Design Pipeline Route Options Winter Stacking in Port Graham 11

12 PLAN SUMMARY The Kitchen Lights Unit, Plan of Exploration (POE) from submitted to the Department of Natural Resources (DNR), by Furie Operating Alaska, LLC (FOA), requires 5 exploratory wells to be drilled by the end of the drilling session 2015 in the 4 blocks of the Kitchen Lights Unit (KLU). FOA s POE allows for development drilling and production to begin as early as the 2013 drilling session, pending federal permitting, but will bring well(s) into production no later than the 4 th quarter of Permitting for a monopod type platform and pipeline(s) will begin as soon as a pipeline route and hydrocarbon sale point can be determined. The platform will be engineered to accommodate a platform rig cable of performing completion work, wireline and coiled tubing for well workovers without the use of a jack-up rig. 12

13 KITCHEN LIGHTS UNIT - EXPLORATION BLOCKS Pending the DNR Commissioner s approval, the Kitchen Lights Unit will now be split into 4 exploration blocks North, Corsair, Central and Southwest blocks The first 2 wells drilled, KLU 1 & KLU 2 will be drilled in the Corsair block On average, drill one new exploratory well per year in the undrilled blocks 13

14 DETAILED PLAN Phase Year Cook Inlet - Drilling & Production Program Exploratory 2012 Drill 2 exploratory wells (KLU 1 & 2) and conduct soil boring for future platforms Obtain unit extension from the DNR for Kitchen Lights Unit Obtain permits for 2013 infrastructure (platforms/pipeline projects & completion of first well) 2013 Drill 1 exploratory well in North, Southwest or Central block Set platform (Platform A ) at KLU 1 or KLU 2 site in Corsair block, if logs permit Install pipeline to production facility or platform Perform completion on KLU 1 or KLU 2 if logs permit 1 st planned production by December 2013, pending permitting Exploratory /Development / Production 2014 Drill 1 exploratory well in 1 of 2 remaining undrilled KLU blocks Drill 1 development well and complete Bring 2 nd well to production 2015 Drill 1 exploratory well in remaining undrilled KLU block Drill 1 development well and complete Bring 3 rd well to production 14

15 DRILLING & DEVELOPMENT TIMELINE Plan of Exploration (POE) utilizes one jack-up rig through 2015 KLU 1 is the first exploratory well in the Corsair block and will be reentered in 2012 The first platform A will be a monopod type platform with a 6 well template The first platform (Platform A) will be place at either the KLU 1 or KLU 2, pending the well logs The POE requires 5 exploratory wells to be drilled through 2015, two in Corsair, one North, one Southwest, and one in the Central Blocks Drilling and Development Plan Exploratory Drilling Wells KLU 1 & 2 3rd Well 4th Expl Well 5th Expl Development Wells KLU 1/2 2nd Devl 3rd Devl Platforms & Pipelines Set Platform A & Pipeline Wells on Production KLU 1/2 2nd Devl 3rd Devl 15

16 PLATFORM (MONOPOD) Conceptual drawing of platform to be set in Corsair block which will be enlarged to support a 20 foot caisson and completion platform rig 16

17 PIPELINE ROUTE OPTIONS Although no contracted sale location has been established, the red lines in the map below are potential pipeline routes from the Corsair block 17

18 SPARTAN 151 WINTER STACKED IN PORT GRAHAM During the winter months, Spartan Drilling conducted ABS steel replenishment work and rig maintenance in Port Graham, AK 18

19 QUESTIONS & ANSWERS Damon Kade President, Furie Operating Alaska, LLC 19