Santos reports positive results from Alaska’s Quokka-1 appraisal well

Australia’s Santos said this week that it had completed its Quokka-1 appraisal well on Alaska’s North Slope. The company described the appraisal as a success, saying the well further delineated the “high-quality” Nanushuk reservoir in the Quokka unit.

The Quokka-1 well was spudded on January 1 and drilled to a total depth of 4,787 feet (1,459 metres), Santos said in the April 8 update. The well encountered what the company described as a high-quality reservoir with roughly 143 feet (44 metres) of net oil pay in the Nanushuk formation, demonstrating an average porosity of 19%. The well achieved a flow rate of 2,190 barrels per day (bpd) of oil following a single-stage fracture stimulation, the company said.

The Quokka-1 well is located around 6 miles (10 km) from the Mitquq-1 discovery well, which was drilled in 2020. Santos said reservoir sands correlated between the two wells and that fluid analyses confirmed the presence of light‑gravity oil. The company believe these results support strong well performance and improved pricing relative to oil from its Pikka project.

The results, along with additional geological data, underpin the potential for a two‑drill‑site development, Santos said, adding that production capacity at the project was expected to be comparable to Phase 1 of Pikka. The company, which operates the Quokka unit with a 51% stake, has begun development planning, including the initiation of major permitting activities.

Spain’s Repsol holds the remaining 49% interest in Quokka.

The two companies are continuing to evaluate rate and resource potential for the two-drill-site development. As of the end of 2025, Santos estimated the Quokka unit to hold 2C contingent resources of 177mn barrels of oil equivalent (boe). Further efforts to assess resources are ongoing and the appraisal results will be evaluated as part of the 2026 contingent resource assessment.

In the same announcement, Santos also said first oil was imminent from Pikka Phase 1. According to the Australian Financial Review, this means the company has missed its target of starting up Pikka by the end of March. However, the newspaper added, the recent spike in oil and gas prices has taken the pressure off top management ahead of Santos’ annual meeting.

The company said Pikka Phase 1 was now mechanically complete, with commissioning activities “progressing well”. First oil is now anticipated in the coming weeks. At the end of the first quarter of 2026, 24 development wells had been drilled at Pikka and 20 had been fractured and flowed back, which Santos said was in-line with pre-drill expectations. Well tie-in activities are now progressing.

The project is expected to achieve plateau production of 80,000 bpd in mid-2026.