NEWS BULLETIN

March 20, 2003 --- Vol. 9, No. 30March 2003

Enbridge increases stake in possible Arctic gas delivery system

Enbridge Inc., Canada’s second largest energy pipeline company, has tightened its hold on Alliance Pipeline Ltd., which could be a major delivery option to the U.S. Midwest for gas from either the Mackenzie Delta or Alaska.

The Calgary-based company announced today that, along with Fort Chicago Energy Partners, it has bought out another U.S. owner of Alliance.

The combined C$406 million deal for Duke Energy Corp’s 11.8 percent stake in Alliance will leave Enbridge and Fort Chicago as joint 50-50 owners of Alliance, a 36-inch diameter pipeline with capacity of 1.55 billion cubic feet per day from northwestern British Columbia to Chicago.

Patrick Daniel, president and chief executive officer of Enbridge, said the new owners will simplify the governance and flexibility of Alliance and “pursue a variety of opportunities to enhance the value of this assets to both shippers and owners.”

He said Alliance is expected to “play a significant role in moving northern gas to market later in the decade.”

Enbridge operates the only oil and gas pipelines north of the 60th parallel in Canada and, although it has kept a low-key profile in discussions about a Mackenzie Valley pipeline it has said that both the valley and Alaska Highway projects are technically viable if they proceed as separate ventures.

State reviewing Anadarko Foothills exploration prospects

The Division of Oil and Gas is reviewing a plan of operations from Anadarko Petroleum Corp. for three gas exploration wells 60 to 70 south of Deadhorse, the Dolly Varden No. 2 and No. 4 and Arctic Char No. 1.

The division said Anadarko has proposed five access scenarios that include combinations of utilizing existing gravel pads and constructing ice roads and pads. Anadarko may build up to 47 miles of ice roads and one 600 foot by 600 foot ice pad per well site. The company may also conduct on-site well testing.

Wells would be drilled in the winter and plugged and abandoned prior to the close of tundra travel unless well evaluations cannot be completed.

The five-year winter exploration program for which Anadarko filed applications last summer included these wells.

Commission sets hearing date for Donkel petition

The Alaska Oil and Gas Conservation Commission has set a May 15 hearing date for a petition from Dan Donkel to unitize leases ADL 380066 and ADL 28249 or to expand the Kuparuk River unit to include lease ADL 380066.

Donkel had overriding royalty interests in state oil and gas lease ADL 380066. The term of that lease expired Jan. 31. Donkel told the commission he was unable to get ConocoPhillips Alaska Inc., the working interest owner in the lease, to either create a unit including the lease or expand the Kuparuk River unit to include it.


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