March 21, 2025 [Storage Terminals Magazine]- Santos is pleased to announce a significant oil discovery at the Sockeye-2 exploration well in the Lagniappe area, east of Prudhoe Bay on Alaska’s North Slope. The well was drilled as part of a joint venture with APA Corporation (50 percent), Santos (25 percent), and Lagniappe Alaska, LLC (25 percent), with APA carrying the exploration well costs under a 2023 farm-in agreement.
The Sockeye-2 well reached a depth of approximately 10,500 feet, successfully encountering a high-quality reservoir with 25 feet of net oil pay in a Paleocene-aged sand formation featuring an average porosity of 20 percent. Additional potential pay zones were also identified in the shallower Staines Tongue formation, further reinforcing the resource potential within the Lagniappe leasehold.
Progressing Towards First Oil at Pikka
Commenting on the discovery, Bruce Dingeman, executive vice president and president of Alaska at Santos, expressed optimism about the results and reaffirmed the company’s commitment to advancing key projects in the region.
“We are pleased with the Sockeye-2 exploration discovery and its confirmation of resource potential over our Lagniappe leasehold. In addition, we are now 80 percent complete at our Pikka phase 1 project. Pipeline installation is progressing well and is set to be completed over two winter seasons, positioning us to potentially accelerate first oil to the end of 2025, subject to logistics and weather conditions allowing for the mobilisation of key production modules via barge up the Hay River. Until greater certainty is achieved, guidance remains unchanged, with first oil expected in mid-2026,” Dingeman said.
Once operational, Pikka phase 1 is expected to deliver 80,000 barrels of oil per day at full production.
Commitment to Responsible Growth
Santos remains committed to disciplined investment in its Alaska assets, ensuring the safe and efficient development of resources while advancing critical infrastructure projects. The success of Sockeye-2 further strengthens the company’s position in the region and highlights its dedication to creating long-term value for shareholders and stakeholders.
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