Oil Company Announces Large-Scale Discovery off Alaska North Slope

Dallas-based Caelus Energy Alaska LLC announced Tuesday its discovery of 6 billion barrels of light oil off Alaska’s North Slope on its state leases.

According to Chief Operating Officer Jim Musselman, the discovery is large enough to help sustain Alaska’s oil industry for the next several decades.

The company has not yet flow-tested either well but instead collected extensive side-wall coring that showed sandstones containing oil. The company plans for another appraisal well and seismic work to better estimate the amount of oil there, which could be up to 10 billion barrels, according to the company.

The company predicts oil flow from the wells to the trans-Alaska pipeline by 2022, assuming the required and extensive regulatory process relating to the discovery goes well.