NEWS BULLETIN

November 07, 2000 --- Vol. 6, No. 52November 2000

Tulsa group buys Gas-Pro Alaska, is permitting North Fork gas well

Northstar Energy Group Inc. of Tulsa, Okla., purchased Gas-Pro Alaska LLC early this year.

"The entire interest of Gas-Pro has been purchased by Northstar Energy Group. And the management of Northstar Energy Group is also the management for Gas-Pro Alaska," Larry Snead, manager of land and contracts for Northstar Energy, told PNA Nov. 7. Gas-Pro is still an Alaska company, he said, but the ownership and management has changed.

Snead said Northstar Energy is a group of oil industry professionals, all with more than 20 years experience, mostly in the Lower 48 and internationally.

The group's technical team has been reviewing Alaska opportunities for more than three years, he said, and Northstar Energy was formed in early 2000 specifically to purchase Gas-Pro.

"The primary focus of the company is Gas-Pro's assets on the Kenai peninsula," he said.

The Alaska Department of Natural Resources Division of Oil and Gas has approved Northstar Energy's 35th plan of development for the North Fork unit on the Kenai east of Anchor Point. There is a suspended gas well at the unit and Snead said Northstar Energy met with Enstar Natural Gas Co. in early May about providing gas to the lower peninsula. A second gas well will be required before gas could be marketed, and Northstar Energy has begun permitting for a second gas well in the unit.

Snead said the company is working on the required permits to drill at North Fork and plans to spud in the first quarter of 2001. He said total cost of the well will be $3.5 million to $4 million.

The suspended well in the North Fork unit, the North Fork 41-35, was drilled in 1965 by Standard Oil Company of California. The well reached a total depth of 12,812 feet. There were oil shows in the Hemlock and gas flows from the shallower Tyonek formation at 220 MCF a day from perforations at 8,563-73 feet; flows of 1,770 MCF a day from perforations at 8,563-8,579 feet and 8,592-8,502 feet; and a pay interval at 8,005-8,045 feet which flowed gas at a rate of 4,360 MCF a day.

Northstar Energy has no doubt that the original well, the 41-35, is capable of producing, Snead said, but an additional well is required to provide an alternative source of gas.

BP November ANS term price down 1.6 percent from October

BP's November term price for Alaska North Slope crude oil is $31.66 a barrel, down 52 cents (1.62 percent) from the October term price of $32.18 a barrel. The October price was the highest the term price had been since it hit $32.24 a barrel in October 1990.

The year-to-date average is $27.96 a barrel, up 76.5 percent from the comparable 1999 year-to-date average of $15.84 a barrel.

The term price has risen most months this year from a January price of $24.56 a barrel. A dip to $23.96 a barrel in May was the low point so far this year.

BP is the only North Slope producer to post a term price.


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