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Santos (ASX:STO) has further confirmed plans to expand its Alaskan oil development aims with the successful drilling of the Quokka-1 appraisal well, located east of the about to come on stream Pikka oil project.
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The well further delineated the high-quality Nanushuk reservoir in the Quokka Unit on Alaska’s North Slope, where Santos holds a 51% operating interest, with Repsol owning the remaining 49%.
Quokka-1 was drilled to a total depth of 1,459m and successfully encountered a high-quality reservoir with approximately 44m of net oil pay with an average porosity of 19%.
Following a single-stage fracture stimulation, the well achieved a flow rate of 2,190 barrels of oil per day (bopd).
Quokka-1 is ~10 kilometres from the Mitquq-1 discovery well drilled in CY20.
Testing found reservoir sands correlate between the two wells, and fluid analyses confirm the presence of high‑quality, light‑gravity oil, supporting strong well performance and improved pricing relative to Pikka oil.
Together with additional geological data, these results underpin the potential for a two‑drill‑site development with capacity comparable to Pikka phase one.
Santos Pikka phase one is a major $4.5 billion-plus oil project in Alaska’s North Slope, targeting first oil in mid-2026. It is designed to produce around 80,000 barrels per day (gross) at full capacity.
Santos has now commenced development planning for Quokka, including the initiation of key permitting activities. The Australian company has previously reported 2C contingent resources of 177 million barrels of oil equivalent (mmboe) for the Quokka Unit.
The energy major’s MD and CEO, Kevin Gallagher, said the appraisal results confirm Quokka as a material addition to Santos’ Alaska portfolio.
“Quokka-1 results demonstrate the exceptional quality of the Nanushuk reservoir and confirm our geological assessment of this significant accumulation. Located strategically to the east of our Pikka phase one development, Quokka represents another high-return opportunity that strengthens our position on the North Slope and extends our development runway in Alaska for years to come,” he explained.
Santos is also planning to conduct a comprehensive 3D seismic survey targeting the Nanushuk reservoir during the CY26-27 northern winter season to further optimise field development planning.
The Quokka success comes with Pikka phase one first oil flow imminent, with the project now mechanically complete, with commissioning activities progressing well.
“Santos remains committed to disciplined investment in Alaska, delivering value for shareholders while responsibly developing world-class resources on the North Slope that are essential to meeting global energy needs,” Mr Gallagher said.
STO is down -6.12% to $7.60 today.
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