NEWS BULLETIN

September 22, 2004 --- Vol. 10, No. 78September 2004

Point Thomson plan submitted, includes both oil and gas

The 21st plan of development and operation for the Point Thomson unit remains focused on gas, although the owners will share with the state results of their evaluation of all potential hydrocarbons in the eastern North Slope unit.

A draft of the plan, submitted in June to the Alaska Department of Natural Resources Division of Oil and Gas, was entirely about gas. The unit owners determined that the gas injection plan they had been studying — selling oil from the condensate in the high-pressure reservoir and re-injecting the gas — is not currently economic, and planned to focus on gas.

The state objected, and the plan as submitted Aug. 31 says the owners will share with the state “results of evaluations and other work associated with potential hydrocarbon resources within the unit area…”

The owners and the state are also working on a memorandum of understanding covering confidentiality of data provided to the state, and under that agreement the owners would share data and interpretations to allow the state to better understand the development alternatives the companies see for Point Thomson, and to allow the owners and the state to work together on a plan for field development.

Aurora applies for Three Mile Creek development well

Aurora Gas LLC has applied to the state of Alaska to drill a development well at the Three Mile Creek unit on the west side of Cook Inlet this fall. The well is one of two required by the unit plan the state approved earlier in the year. Aurora said it and partner Forest Oil Corp. plan some 10 days of drilling and 20 days of testing and completion work this fall.

Prior to drilling, Aurora will construct a one-quarter mile gravel road and a 200 foot by 300 foot well pad.

The objective is gas bypassed in a 1967 well drilled by Superior exploring for oil, and Aurora said it will be drilling “on the same structure and up dip” of the Superior well.

A 4.5 mile gas pipeline would be required to connect the well to Aurora’s existing Lone Creek pipeline.

See stories in Sept. 26 issue of Petroleum News.


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