Texas Oil Company announces big offshore Alaska discovery


A Texas petroleum drilling company made an announcement on Tuesday that it has discovered a large-scale oil sources off Alaska’s North Slope. Chief Operating Officer Jim Musselman called

The Smith Bay development has capacity to deliver 200,000 barrels per day of light oil to the trans-Alaska pipeline which would help extend its viability, the company said. The wells were nearly 2 miles offshore and 4 to 6 feet deep.

Production of oil is years away though. The next appraisal well is planned for 2018. If all goes as planned, he said, oil could flow to the trans-Alaska pipeline in 2022.

Hilcorp Alaska LLC, a subsidiary of Hilcorp Energy Co., has proposed building a gravel island for its Liberty prospect in the Beaufort Sea. The island could be used for five or more extraction wells to tap oil 6 miles from shore.

Caelus Energy Alaska Smith Bay has a 75 % ownership in the state leases at Smith Bay. NordAq Energy Inc. holds a 17.5 % interest, and L71 Resources LLC holds a 7.5 % interest.