Page 15 - NorthAmOil Week 49

NorthAmOil PROJECTS & COMPANIES NorthAmOil

88 Energy prepares to drill at Project

Peregrine following farm-out

ALASKA AUSTRALIA-BASED 88 Energy is making pro- the prospective conventional Nanushuk topset
gress with its Project Peregrine development in horizons, which are located on trend to existing
the National Petroleum Reserve-Alaska (NPR- discoveries to the north of the Project Peregrine
A) on the state’s North Slope. Over the past week area. Indeed, the Project Peregrine leases are
it emerged that the company had farmed out a located around 35 km south of ConocoPhillips’
50% stake in the project to Alaska Peregrine Willow oil discovery, which holds an estimated
Development Co. (APDC), and had executed 450-800mn barrels of oil equivalent (boe).
the contract to drill the Merlin-1 and Harrier-1 APDC is a special purpose investment vehi-
wells at the development. cle that was organised specifically for the devel-
The Project Peregrine These moves reportedly put 88 Energy on opment of Project Peregrine. It consists of a
leases are located track for its scheduled spud date of February consortium of private US entities managed by
around 35 km south of 2021, assuming the remaining permitting and individuals, some of whom own existing busi-
ConocoPhillips’ Willow planning proceed as expected. nesses on the North Slope. APDC will cover
oil discovery. The contract for the two wells was executed most of the costs associated with the Merlin-1
with All American Oilfield, for the use of Rig 111. well, contributing $11.3mn of the well’s total esti-
The lightweight workover rig can be transported mated gross cost of $12.6mn.
off-road in pieces by tundra-safe track vehicles The push to drill at Project Peregrine comes
along snow trails and gravel roads, which means as 88 Energy has reduced its stake at Project
that 88 Energy does not need to construct an ice Icewine on the central North Slope to 25%. The
road to the drilling location. company said separately that it was in the process
Both wells are set to be drilled to a total depth of negotiating a farm-out for remaining leases
of around 6,000 feet (1,829 metres) and intersect around the recently drilled Charlie-1 well.™

Cheniere reportedly loads commissioning

cargo from Corpus Christi Train 3

US GULF COAST LEADING US LNG exporter Cheniere Energy
has reportedly loaded the commissioning cargo
from the third liquefaction train at its Cor-
pus Christi terminal in Texas. Zacks Equity
Research reported on December 9 that the cargo
was loaded onto the La Mancha Knutsen LNG
tanker, marking the 200th cargo loading on that
tanker from Corpus Christi LNG.
Cheniere said in early November that it had suggest that a final investment decision (FID) on
begun commissioning the third train at Corpus this new stage has become less of a priority in
Christi, with the unit set to enter commercial the short term. Instead, the company is expected
service sometime in the first quarter of 2021. The to focus on lining up offtake agreements for
company has brought the in-service date for- additional LNG it can produce from its existing
ward, having originally planned to bring Train trains.
3 online in the second half of 2021. Separately, it was reported this week that
Corpus Christi is the first greenfield LNG Sabine Pass Liquefaction, a unit of Cheniere
export terminal to be built in the US, with the Energy Partners, had agreed to sell up to 30
other export facilities to have been built to date cargoes to Cheniere Marketing International
involving conversions from existing import in 2021. The cargoes would be priced at a rate
capacity. The three trains at Corpus Christi each equivalent to 115% of Henry Hub natural gas
have a capacity of 4.5mn tonnes per year (tpy). futures plus a premium of $0.728 per million
Cheniere is proposing another phase of British thermal units ($20.14 per 1,000 cubic
expansion at the plant, involving a different metres), Cheniere Energy Partners said in a fil-
design and seven mid-scale trains with a com- ing with the US Securities and Exchange Com-
bined capacity of 10mn tpy. Recent comments mission (SEC).™

Week 49 10•December•2020 www. NEWSBASE .com P15