Unocal Seeks Permission to Explore for Natural Gas in Alaska's Matanuska Valley

Alaska-based Unocal Corp. is making a significant move to tap into the state's natural gas reserves by seeking permission to search for gas in the coal beds of the Matanuska Valley, an area located 40 miles north of Anchorage. The proposed Pioneer Unit project aims to identify more reserves to supply the company's large fertilizer plant at Ninilchik, a crucial aspect of their operations. Unocal officials have stressed that the proposed exploration plan is a testing program to determine the economic viability of the project, with potential full-scale production to follow if the results are favorable.

Key Takeaways:

• Unocal Corp. is seeking permission to explore for natural gas in the coal beds of Alaska's Matanuska Valley, specifically in the proposed Pioneer Unit.
• The project aims to supply gas for Unocal's large fertilizer plant at Ninilchik, as well as sell gas to Enstar.
• The proposed exploration plan involves drilling exploratory wells to depths of approximately 7,000 feet.
• The company may also re-enter an old well that was previously plugged by Arco Alaska Inc.
• The project involves state, federal, and private lands, including Alaska Mental Health Trust lands and University of Alaska property.
• Unocal has already secured 60 percent of the leases in the proposed unit, with the remaining unleased acreage to be addressed.

Statistics:

• Distance from Anchorage to the Matanuska Valley: 40 miles
• Depth of exploratory wells: approximately 7,000 feet
• Percentage of leases secured by Unocal: 60%
• Acreage involved in the proposed unit: state, federal, and private lands, including Alaska Mental Health Trust lands and University of Alaska property

Sources:

• Unocal Corp.
• The Associated Press
• Carol Lee, leasing manager for the state Division of Oil and Gas
• Roxanne Sinz, Unocal spokeswoman