February 22, 2005 --- Vol. 11, No. 19February 2005

Pioneer, Armstrong to develop Oooguruk from site in Beaufort Sea

Pioneer Natural Resources Alaska and its partner Armstrong Alaska are planning to develop their discovery at Oooguruk in the Beaufort Sea from a drill site pad in state of Alaska waters near the mouth of the Colville River.

In a general project description submitted to the Alaska Department of Natural Resources Division of Oil and Gas, Pioneer said the five-acre drill site will be in approximately four feet of water, and will develop both Kuparuk and Nuiqsut (Jurassic) reservoirs with a peak rate of 20,000 barrels of oil per day planned.

The development will include approximately 48 wells in containment modules, and three-phase production will be transported to shore in a buried subsea “pipe in pipe” flowline. There will also be a one-half acre onshore gravel pad at the shore transition site for automated valves and valve housing.

Offshore and onshore import/export flowlines and utilities will terminate at a Kuparuk River unit drill site facility which will be expanded to allow for Oooguruk tank storage, pig launching/receiving and chemical injection facilities. Kuparuk River unit facilities, operated by ConocoPhillips Alaska Inc., will process the three-phase production stream, with sales quality crude to be transported through the existing oil pipeline network to the trans-Alaska pipeline. Fuel gas, lift gas and electrical power will be provided by the Kuparuk River unit and will be transported to the Oooguruk drill site in subsea pipeline and cable.

The companies plan to have permits in the fourth quarter of 2005, begin offshore drill site installation in late 2005-early 2006, with flowlines, gravel pad and rig installation in the first quarter of 2007, development drilling beginning in the second quarter of 2007 and oil start-up planned for the fourth quarter of 2007.

Petro-Canada and Anadarko agree to explore Foothills jointly

Petro-Canada said today that it has reached an agreement with Anadarko Petroleum Corp. to jointly explore in the Brooks Range Foothills in Alaska. Anadarko will be the operator of the joint venture.

Petro-Canada said the agreement involves pooling of more than 1.5 million acres of state and Arctic Slope Regional Corp. lease holdings, as well as pooling of data and knowledge in the area. EnCana Oil and Gas (USA) Inc. will continue to hold a 33.33 percent interest in the Anadarko data and lease holds in the pooled area. Prior to the joint venture, Petro-Canada had an interest in 430,000 acres in the Foothills.

“Petro-Canada and Anadarko hold a strong land position in the area, much of which is contiguous,” said Derek Evoy, Petro-Canada’s manager, North American Frontiers. “We also have a common view of the potential of the area.”

CORRECTION: State sales set for May 18

An item in the Feb. 17 News Bulletin had an incorrect date for the state of Alaska’s upcoming Cook Inlet and North Slope Foothills areawide oil and gas lease sales. Bids will be opened and read May 18 in Anchorage.

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