RDC BOARD OUTREACH TRIP 2026: DESTINATION PIKKA
VOLUME 3 | ISSUE 3 | SEPTEMBER 2026
SANTOS EYES QUOKKA AS PIKKA RAMPS UP OUTPUT
Amid new permitting, discovery could yield 'Pikka-scale potential' BY FIREWEED STRATEGIES SANTOS LTD. IS WASTING LITTLE TIME BUILDING ON ITS EMERGING SUCCESS AT PIK- KA, MOVING AHEAD WITH PLANS TO EVALUATE AND POTENTIALLY DEVELOP ANOTHER MAJOR OIL ACCUMULATION NEARBY ON ALASKA’S NORTH SLOPE. The company’s Alaska subsidiary, Oil Search Alaska LLC, has applied to the U.S. Army Corps of Engineers for permits cov- ering development of the Quokka Unit, a discovery southeast of the Pikka field near the Miluveach River. The proposed project would include two drill sites, a central processing facility, access roads and a network of field pipe- lines connecting the development with ex- isting infrastructure. The permitting effort comes only months after Santos completed the Quo- kka-1 appraisal well, which confirmed a substantial oil accumulation in the Nanushuk formation. Santos estimates the Quokka Unit con- tains approximately 450 million barrels of gross 2C contingent resources, with San- tos’ 51% share amounting to about 177 million barrels. The company says the dis- covery has the potential to support a de- velopment on the scale of Pikka Phase 1. The distinction between resources and reserves is important. The 177 million barrels is classified as a 2C contingent re- source, meaning Santos considers the vol- umes potentially recoverable but addition- al appraisal, development and commercial conditions must be satisfied before they can be classified as reserves. Quokka-1 was spudded Jan. 1 and drilled to a total depth of 4,787 feet. San- tos reported approximately 143 feet of net
oil pay in the Nanushuk formation, with average reservoir porosity of about 19%. Following a single-stage fracture stimu- lation, the well flowed at approximately 2,190 barrels of oil per day. The test produced high-quality, light crude of approximately 36 degrees API, further supporting Santos’ assessment of the discovery. “The Quokka-1 results demonstrate the exceptional quality of the Nanushuk reservoir and confirm our geological as- sessment of this significant accumulation,” Santos CEO Kevin Gallagher said follow- ing the appraisal results. “Located strategically to the east of our Pikka Phase 1 development, Quokka rep- resents another high-return opportunity that strengthens our position on the North Slope and extends our development run- way in Alaska for years to come.” That development runway is becoming increasingly important as Santos transi- tions Pikka from construction into full production. Pikka Phase 1 began continuous pro- duction during the summer, with initial production wells delivering approximately 20,000 barrels per day. Santos reported in its second-quarter update that production had increased to approximately 23,000 barrels per day gross as additional wells and seawater injection were brought on- line. The company has targeted approxi- mately 80,000 barrels per day during the third quarter of 2026. Pikka's production ramp-up also demonstrates the infrastructure advantage Santos expects to have when developing additional North Slope resources. Roads, camps, pipelines, seawater facilities and processing infrastructure established for Pikka could be leveraged by future devel- opments, reducing the amount of new in- frastructure required for Quokka. Santos' current concept calls for Quok- ka to use two drill sites and production in-
frastructure comparable in scale to Pikka Phase 1. The company has described the discovery as having “Pikka-scale poten- tial.” The U.S. Army Corps of Engineers' permit application provides additional detail on the proposed development. The project would include two drill-site pads, a central processing facility, access roads and infield, import and export pipelines. The proposed facilities would be located approximately 15 miles east of Nuiqsut, lo- cated on the Colville River near the Beau- fort Sea. Environmental field studies are already underway as Santos advances the permit- ting process. The company is also planning addi- tional seismic work. A 3D seismic survey covering Pikka and northern Quokka is scheduled for the 2026-27 winter season. The seismic program is expected to pro- vide additional information for develop- ment planning and help define the extent and characteristics of the Quokka accumu- lation. The work is part of a broader Santos exploration and appraisal program on the North Slope that also includes the Horse- shoe area. The strategy illustrates a shift in the company's Alaska operations from estab- lishing a single new oil field to developing a larger regional production hub. Pikka provides the foundation. Quok- ka could become the next major develop- ment, while other nearby prospects offer additional opportunities to extend produc- tion over the longer term. For Alaska, the significance extends be- yond Santos' portfolio. Pikka represents one of the largest new oil developments to reach production on the North Slope in decades. If Quokka moves forward at a scale comparable to Pikka Phase 1, it could establish a second major source of production from the same emerging development corridor.
Each year our RDC board of directors makes an outreach trip to get a real firsthand look at the glory and challenges of our important Alaskan resource development opportunities. This summer that destination was the Pikka Project!
$
THAT POWER ALASKA. POWERING THE BUSINESSES Northrim’s banking experts live and work across the state, serving the communities we call home. We understand Alaska’s industries, and the unique challenges and opportunities that come with doing business here. From personalized lending to everyday banking, we deliver local expertise and Superior Customer First Service to help Alaska businesses achieve more.
northrim.com | (907) 562-0062
30
31
www.AKRDC.org
ALASKA RESOURCE REVIEW SEPTEMBER 2026
Made with FlippingBook interactive PDF creator