NEWS BULLETIN

February 12, 2008 --- Vol. 14, No. 17February 2008

Fairbanks Natural Gas secures North Slope gas contract

Fairbanks Natural Gas LLC has entered into a contract with Exxon Mobil Corp. for a supply of North Slope natural gas to sell in Fairbanks.

Under the contract, Fairbanks Natural Gas will purchase 10 billion cubic feet of natural gas a year for 10 years beginning in mid-2009. The contract with ExxonMobil Gas & Power Marketing Co. allows for annual renewal after the initial 10-year contract.

The 2009 startup date allows Fairbanks Natural Gas to complete construction of a liquefaction plant at Prudhoe Bay. The plant will be built and owned by a Fairbanks Natural Gas affiliate called Polar LNG LLC.

Fairbanks Natural Gas currently buys its natural gas supply through an emergency contract with Enstar Natural Gas Co.

Fairbanks Natural Gas liquefies the gas at a plant in Cook Inlet and trucks it north to Fairbanks along the Parks Highway.

As part of the emergency contract, state regulators forced Fairbanks Natural Gas to look for a North Slope supply.

Under the new arrangement, Fairbanks Natural Gas will truck the liquefied natural gas nearly 500 miles down the Dalton Highway to its distribution grid in Fairbanks.

Editorís note: See full story in the Feb. 17 issue of Petroleum News that will be available online to subscribers on Friday at www.PetroleumNews.com.

CORRECTION:

A news bulletin sent out Feb. 11 incorrectly listed the date Brooks Range Petroleum spud the Tofkat No. 1 well as Feb. 11.

The company actually spud the well on Feb. 12 at 9 a.m.

Petroleum News regrets the error.


Petroleum News - Phone: 1-907 522-9469 - Fax: 1-907 522-9583
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