NEWS BULLETIN

February 19, 2001 --- Vol. 7, No. 19February 2001

BP joins Anadarko, Alberta Energy in foothills gas exploration

BP Exploration (Alaska) Inc. is joining Anadarko Petroleum Corp. and Alberta Energy Co. Ltd. in exploring for natural gas on more than 3 million acres in the foothills region.

Anadarko said Feb. 19 that BP has acquired a one-third interest in Anadarko's exclusive agreement with Arctic Slope Regional Corp. covering approximately 3.1 million acres. In exchange, Anadarko received from BP a material interest in a satellite prospect near Prudhoe Bay and an interest in selected seismic surveys conducted by BP on the North Slope.

BP will also purchase a one-third interest in approximately 230,000 acres of state leases jointly acquired by Anadarko and AEC at the state's November 2000 North Slope areawide lease sale. AEC will retain its one-third interest. The purchase amount was not disclosed.

"Anadarko is actively searching for natural gas on the North Slope, and we see a lot of potential there to help meet the increased demand for natural gas in the Lower 48," said John N. Seitz, Anadarko president and chief operating officer. "BP is already a major producer on the slope, and we're proud to be partnering on these efforts with both BP and AEC."

The joint exploration effort is already under way and includes several seismic surveys this year. Anadarko is the operator and each company holds a one-third interest in the joint program.

The exploration territory is in the foothills area of the Brooks Range on the North Slope, south of existing producing fields, and stretches east-west for approximately 250 miles from the Colville River to the Canning River.

Anadarko signed an agreement with Arctic Slope Regional Corp. to explore this region in 1998. AEC became a one-third partner in 2000.

BP files for new unit southwest of Point Thompson

Exploration could move south of Badami and west of the Sourdough discovery if BP Exploration (Alaska) Inc. and partners Chevron and Phillips drill a well proposed for a new unit on the east side of the North Slope.

BP has applied to the state to form the Slugger unit southwest of Point Thompson. BP would be the unit operator. Chevron U.S.A. Inc. and Phillips Alaska Inc. also hold interests in the leases.

The proposed unit covers approximately 79,058 acres and includes 14 state oil and gas leases.

BP has requested a five-year term for the unit agreement.

The Alaska Department of Natural Resources Division of Oil and Gas said BP proposed a two-year initial unit plan of exploration. Working interest owners must decide by June 15 if they will commit to drill a well in the unit area and, if they decide to drill, a well must be completed, suspended or abandoned by June 15, 2003.

Failure to meet commitments in the exploration plan would result in automatic termination of the unit; lessees would surrender leases whose primary terms have expired.

Most of the leases in this group expire at the end of March.


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