The KLU-4 well was originally drilled to 10,000 feet in 2014 and will be punched down to 18,000 possibly this year but more likely next, according to Webb.
“We know there’s gas there for sure; we’ve drilled through some gas and we see the gas on the seismic and on the seismic it appears to be a pretty large oil reservoir, but again, you don’t know for sure until you drill into it,” he said. “It could be really good sandstone with water.”
The company once intended to drill farther, into the Jurassic formation, but expiration of the state tax credit for drilling with a jack-up rig in July caused Furie to back off on the extra drilling, Webb added. The work will be done with the Randolph Yost jack-up rig, a modified shelf-drilling rig the company moved to the Inlet early this year from the South Pacific.
He said Furie hopes to get at least 2,000 barrels per day from KLU-4 starting sometime in 2019, about the time the company believes the oil production will become profitable.
While Furie has identified gas in KLU-4, it hasn’t been fully delineated.
“We’ll go after the oil and the gas will be there when we need it,” Webb said.
It has begun the permitting process for another platform and is shooting for mid- to late 2018 to start development and eventual installation
