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A Little Extra from Lagniappe: Oil Discovery East of Prudhoe

Mar 19, 2025 | News, Oil & Gas

A recent map of North Slope activity shows wells in the Lagniappe area, not yet unitized, including the promising King Street-1 well and Sockeye-1, predecessor to the newest discovery.

Photo Credit: Alaska Department of Natural Resources

An exploration area east of Prudhoe Bay yielded an oil discovery, according to lead developer Apache, a subsidiary of Texas-based APA Corporation. The Sockeye-2 well was drilled to approximately 10,500 feet and successfully encountered a high-quality reservoir with approximately 25 feet of net oil pay.

Sockeye-2 is in the Lagniappe area between the Badami and Point Thomson units. Apache holds a 50 percent ownership stake alongside Santos subsidiary Oil Search (Alaska) and Lagniappe Alaska, a subsidiary of Armstrong Oil & Gas.

Exciting Opportunity in an Active Area

CEO Bill Armstrong says, “The Sockeye-2 test is the second successful exploratory well drilled by the partnership on a 325,411-acre position on state lands. The first well, King Street-1, was a new field discovery with oil in two separate Brookian Zones. The Sockeye-2 well further demonstrates the potential of the play, presenting an exciting opportunity in an active area of the North Slope with significant existing infrastructure.”

Armstrong began exploring the area in 2013, in partnership with Repsol. Armstrong is credited with discovering the Pikka oil field that Santos is developing west of Prudhoe Bay. To ramp up exploration in the Lagniappe area in 2023, he partnered with Apache, which had exited Alaska in 2016.

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According to Apache, the Sockeye prospect confirms the partners’ geologic and geophysical models. Compared to other fields in the Brookian play, the porosity and permeability are both better than expected, with the permeability to be confirmed through a planned flow test. Additional data collection is underway, including acquiring core and flow testing the well.

APA Corporation CEO John J. Christmann says, “We are very encouraged by the results at the Sockeye-2 well, which further proves our geologic and geophysical models and confirms a working hydrocarbon system. We look forward to the results of the flow test and sharing more information about the broader opportunity in Alaska.”

Santos and Armstrong Oil and Gas each hold 25 percent working interests in the Lagniappe area. The exploration well cost is carried by APA as part of a 2023 farm-in agreement.

Santos Executive Vice President and President Alaska Bruce Dingeman says, “We are pleased with the Sockeye-2 well exploration discovery and its confirmation of resource potential over our Lagniappe leasehold.”

Meanwhile, Dingeman confirms strong progress with Pikka. “We are now 80 percent complete at our Pikka phase 1 project. Pipeline installation is progressing well and set to be completed in two winter seasons, putting us in a good position to pursue acceleration to first oil around the end of 2025. This will be dependent on logistics and weather allowing for the mobilization of key production models by barge up the Hay River. Until we have more certainty, guidance remains unchanged with first oil in mid-2026,” he says.

Pikka phase 1 is expected to deliver 80,000 barrels of oil per day at full production.

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In This Issue
Arctic Development + Infrastructure
March 2025
Our March 2025 issue looks north at current, ongoing, and potential development in the Arctic. While many of the projects and initiatives will help build and diversify Alaska’s economy, happenings there are also drawing national attention to Arctic resources and security, spurring the creation of assets like the Ted Stevens Center for Arctic Security Studies. While some infrastructure is located in the Arctic itself, development throughout the state supports local and national goals to ensure Alaska’s communities are safe and strong, which we explore in this issue. Enjoy!
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