The firm has estimated the oil in place under the current leasehold to be six billion barrels.
The estimate is based on two wells drilled in early 2016 as well as 126 square miles of existing 3D seismic.
It said the discovery in the Smith Bay fan complex may hold ten billion barrels of oil in place when the adjoining acreage is included.
Caelus expects that it will be able to recover 30-40% of the discovered oil reserves.
Caelus CEO Jim Musselman said: “This discovery could be really exciting for the State of Alaska. It has the size and scale to play a meaningful role in sustaining the Alaskan oil business over the next three or four decades.
“Fiscal stability going forward is critical for a project of this magnitude. Without the state tax credit programs, none of this would’ve happened, and I’m not sure Caelus would’ve come to explore in Alaska. We’re proof that the credit programs work.”
The company said that the Smith Bay development can provide 200,000 barrels per day of light, which is highly mobile oil.
The supply would be helpful in increasing Trans-Alaska Pipeline System (TAPS) throughput volumes and reducing the average viscosity of oil in the pipeline.
Currently, Caelus is planning an appraisal program to drill an additional appraisal well and acquire a new 3D seismic survey over outboard acreage.
The program will allow the company to confirm reservoir continuity, optimize future drilling locations, and ultimately increase reserves.
Caelus is also studying and planning to build the facilities to process and transport the oil to TAPS.
