NEWS BULLETIN

February 25, 2008 --- Vol. 14, No. 25February 2008

Pioneer, ConocoPhillips sign Oooguruk agreement

Pioneer Natural Resources Alaska said today that a production processing and services agreement has been signed between the Pioneer-operated Oooguruk Unit and the ConocoPhillips Alaska-operated Kuparuk River Unit.

Pioneer said it is the first new field operator on the North Slope in more than 30 years and the agreement is the first of its kind between two North Slope fields.

The agreement allows production from Oooguruk to be processed at Kuparuk, with production flowing through a gathering line to KRU drill site 3H and then on to a KRU processing facility. Once processed, the crude oil will be transported to Pump Station 1, the beginning of the trans-Alaska oil pipeline.

Pioneer said it and its partner Eni expect first oil production from Oooguruk during the first half of 2008. Gross resource potential is estimated at 70 million to 90 million barrels, with peak production expected in 2010 at 15,000-20,000 barrels per day from some 40 development wells. Oooguruk field life is expected to be 25-30 years.

Pioneer said that at more than $500 million (gross), Oooguruk is its largest single capital project to date.

EDITORíS NOTE: See full story in March 2 issue of Petroleum News, available online to subscribers Friday, Feb. 29 at noon, at www.PetroleumNews.com.


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