NEWS BULLETIN

October 22, 2001 --- Vol. 7, No. 133October 2001

Phillips Alaska proposing four exploration wells on Kuukpik Corp. lands

Phillips Alaska Inc. is permitting four winter exploration wells on Kuukpik Corp. lands in the Colville River delta area. Two of the wells (Callisto and Nanuq) have partial subsurface ownership by the state of Alaska; two of the wells (Ganymede and Sunrise) have subsurface owned by the Arctic Slope Regional Corp.

The Callisto No. 1 is in section 5 of township 10 north, range 5 east, Umiat Meridian, approximately 10 miles south of Harrison Bay and approximately 2 miles north of Nuiqsut.

The Ganymede No. 1 is in section 3 of township 10 north, range 4 east, Umiat Meridian, approximately 7 miles southwest of Alpine drill site CD-2.

The Nanuq No. 5 is in section 24, township 11 north, range 4 east, Umiat Meridian, approximately 7 miles southeast of Harrison Bay and approximately 4 miles south of Alpine.

The Sunrise No. 3 is in section 29, township 11 north, range 4 east, Umiat Meridian, approximately 5 miles south of Harrison Bay and approximately 6 miles northwest of Nuiqsut.

A work schedule indicates that two of the wells would be drilled in a single season: Nanuq No. 5 or the Callisto well would be drilled in February-March and the Ganymede or Sunrise No. 3 well in March-April. Each well will be drilled from an ice drill pad and have as many as three penetrations (one well and two sidetracks).

BP gets partial Department of Energy funding for gas hydrates study

BP Exploration (Alaska) Inc. has been selected by the U.S. Department of Energy as one of six applicants to receive funding in a $48 million study of gas hydrates. The BP effort, a four-year, $21 million research effort, will map, quantify and assess the feasibility of gas production from North Slope gas hydrates.

Ronnie Chappell, BP Exploration (Alaska) spokesman, told PNA Oct. 22 that the company submitted an application to DOE in April with a proposal for this project.

"We see this research as a good opportunity to assess both the gas hydrate and shallow gas resources on the North Slope. And those resources which could be immense would be available to support a gas commercialization effort. In a very real sense, it's part of the full court press that's under way to move North Slope natural gas to market," he said.

BP will serve as the project coordinator and industry liaison, Chappell said, and will be providing seismic and well data used in the assessment.

DOE said BP "will characterize, quantify and determine the commercial viability of in situ, recoverable gas hydrates and associated free gas resources in three areas of the Alaska North Slope: Prudhoe Bay, Kuparuk River and Milne Point units." Also involved in this study are the University of Arizona, which will integrate the data to help determine the resource extent, quality and quantity; the University of Alaska Fairbanks which will provide petroleum engineering expertise, cost analysis and economic evaluation and the U.S. Geological Survey which, Chappell said, will also provide expertise and experience from past research on North Slope gas hydrates.

The project cost is $21.3 million of which DOE will contribute $13.27 million and the participants $8 million.


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