NEWS BULLETIN

February 19, 2008 --- Vol. 14, No. 23February 2008

Exxon files plans to develop Point Thomson

On behalf of itself and the other working interest owners, ExxonMobil filed a plan to develop the Point Thomson unit by 2014 with the Alaska Department of Natural Resources, the company said in a press release Feb. 19, noting the partners would expect to spend approximately $1.3 billion, commencing a multi-year development and delineation drilling program in the 2008-09 winter season. The plan for the eastern North Slope unit included building production facilities, pipelines and support infrastructure.

Exxon’s plan was filed as an alternative to the state’s termination of Point Thomson, a decision that was upheld by Alaska Superior Court Judge Sharon Gleason late last year. Alternative recommendations were due by today at 5 p.m. in preparation for a March 3 administrative hearing with DNR that the judge ordered to give Point Thomson unit working interest owners a chance to come up with an “appropriate remedy” to termination.

Under the initial phase, Exxon said “approximately 200 million cubic feet per day of Point Thomson gas is expected to be produced. Approximately 10,000 barrels per day of liquid condensate that is separated from the gas is planned to be delivered for sale through new and existing oil pipelines. The remaining gas will be injected back into the Thomson Sand reservoir to maintain pressure for continued hydrocarbon recovery and for subsequent gas sales.”

Under the plan it submitted to DNR, the company said, “engineering work will be completed to provide necessary information that will allow individual Point Thomson unit owners to participate in an open season for a gas pipeline. Subsequent field development will be determined, which could include expanding the injection capacity, oil production, pursuing gas sales or a combination.”

Craig Haymes, Alaska production manager from Exxon, said, “We look forward to working with the State of Alaska to delineate and bring Point Thomson hydrocarbon resources into production. We have completed significant engineering and geoscience work over the past 18 months, focused on reservoir evaluation and development planning. The assessments indicate that a phased development is a prudent approach to maximize the benefits to the State of Alaska and the Point Thomson owners, especially since a gas pipeline is more than a decade away.”


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