NEWS BULLETIN

May 11, 2001 --- Vol. 7, No. 55May 2001

Fairweather to manage SDC unit

The single steel drilling caisson stacked at Port Clarence is now under the management of Fairweather Inc., Fairweather's Bill Penrose told PNA.

A converted tanker that has been modified so that it can sit on the ocean floor, the SSDC was originally built and owned by Canmar. Last year, when the drilling unit was sold to Seatankers Management Co. of Oslo, Norway, the unit's name was changed to SDC, Penrose said.

Fairweather is charged with both marketing and managing the SDC, and Penrose said Fairweather will market the SDC internationally, which will include talking to companies doing business offshore Alaska's North Slope and in the Canadian Beaufort Sea.

Aurora will ship gas from Nicolai Creek this summer; more work planned

Aurora Gas LLC has pipe at its Nicolai Creek site and is preparing to ship equipment across the inlet to hook up gas production, Scott Pfoff, president and CEO of Aurora Gas, told the Alaska Support Industry Alliance May 11.

"I'd hoped to be able to tell you that a barge departed Nikiski this morning… Unfortunately our barge was delayed and the pipeline equipment that is going across the inlet to commence our pipeline project should be departing tomorrow…," Pfoff said.

Aurora Gas purchased the interests of Unocal and Marathon in the Nicolai Creek gas field in early 2000 and the Nicolai Creek No. 3 well was worked over, cleaned up and re-completed in December.

"The well was tested in February at flow rates in excess of 4 million cubic feet per day and was still unloading fluid at the end of the test, so we're optimistic that it will do even better," Pfoff said.

Aurora plans two more similar re-entries at Nicolai Creek this year, Pfoff said, and the company is also in the process of permitting one new well at the field which it hopes to complete this year.

Ed Jones, vice president of Aurora Gas, told PNA the company should be moving gas from the Nicolai Creek well this summer.

The mile of pipeline construction should take about two weeks, Jones said, "and then we've got some work on the production facility… so we're four to six weeks away" from moving gas.

Forest coring at Redoubt Unit No. 2 well

Forest Oil Corp. announced first quarter operational results May 9 for North America and international operations. Sixteen of 20 wells were completed for an 80 percent operational rate, the company said.

For Alaska, Forest reported that the Redoubt Unit No. 2 well is currently coring in the objective Hemlock zone. The well will be logged and tested after coring is complete and all operations should be complete at the well within the next three weeks. Forest has 100 percent working interest at Redoubt.


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