November 28, 2001 --- Vol. 7, No. 149November 2001

Marathon begins natural gas production from Wolf Lake

Marathon Oil Co. said Nov. 28 that it has achieved first natural gas production from the Wolf Lake field in the Kenai National Wildlife Refuge approximately 12 miles northeast of Soldotna.

Current production is 3 million cubic feet of gas per day and began Nov. 17. The gas is delivered by pipeline to Enstar for distribution throughout the Cook Inlet region of Southcentral Alaska, including the city of Anchorage.

"Wolf Lake is the first Cook Inlet gas field discovery to be brought to market since 1979," said John Barnes, manager of Marathon's Alaska business unit.

"The Wolf Lake discovery is a direct result of Marathon's commitment to a multi-year drilling effort in the Cook Inlet," Barnes said.

"For some time, Marathon has seen the Cook Inlet as an area with a proven resource base, waiting on the right market conditions to support development. We will continue to pursue solutions which will allow Marathon to competitively meet the needs of the local markets."

Marathon has a 100 percent interest in the field. Cook Inlet Region Inc. owns the subsurface mineral rights and will receive royalties from Marathon for Wolf Lake natural gas production. Marathon said that ultimate development at the Wolf Lake field may require up to six gas wells at three sites.

Marathon discovered the Wolf Lake field in November 1998. In March 1999, Marathon filed a right of way permit application with the U.S. Fish and Wildlife Service for the construction of a five-mile pipeline and facilities to develop the Wolf Lake field, which was approved in July 2000 following preparation of an environmental impact statement by the Fish and Wildlife Service.

Phillips looking at 10 exploration wells in Alaska in 2002

Phillips Petroleum Co.'s Dodd DeCamp, vice president of worldwide exploration, told analysts at a Nov. 27 presentation that the company plans 40 exploration wells worldwide in 2002, a $350-$400 million investment.

Ten of those wells will be in Alaska, he said, including satellites and National Petroleum Reserve-Alaska.

Phillips Alaska Inc. has a number of existing permits and is also permitting for additional prospects. Phillips Alaska expects board approval of its program in early December.

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