January 26, 2010 --- Vol. 16, No. 9January 2010

BRPC Group spuds Sak River No. 1 A well

Brooks Range Petroleum Corp. spud the Sak River No. 1A well today, the company said.

Sak River No. 1A is a sidetrack of the suspended Sak River No. 1 well, which BRPC drilled in early 2007. BRPC re-entered the well and plans to drill a new hole after the cement plug at the base of the surface casing set to 4,225 feet has been drilled-out.

The company plans to drill Sak River No. 1A to a total depth of around 12,500 feet, and expects to finish the well some time in early February.

The North Slope well aims to test an oil prospect in the Kuparuk formation identified by proprietary 3-D seismic data.

Sak River No. 1A sits on State lease ADL 390431, located inside the newly formed Beechey Point unit. The company is drilling the well using Nabors Rig 16E.

The Beechey Point unit, approved by the state last fall, includes the undeveloped North Shore No. 1 and Pete’s Wicked oil discoveries. The company said any discovery at Sak River No. 1A would likely be developed together with existing discoveries in the unit.

“The BRPC Group appreciates those who have supported our progress on this project, including the State of Alaska for approving the Beechey Point unit, the North Slope Borough for approving the BPU Rezone, and the major facility owners on the North Slope for access to existing infrastructure,” Jim Winegarner, vice president of land and external affairs for BRPC, said in a prepared statement.

The BRPC Group exploration program this winter helps fulfill work commitments the joint venture made to the State of Alaska under the Beechey Point unit plan of exploration.

The Sak River No. 1A well is the first in a multi-well program the companies have planned for this winter. After completing the well, BRPC plans to move Nabors Rig 16E a mile and a half south to drill the North Shore No. 3 well. That well will test an independent Sag River/Ivishak closure also located within the Beechey Point unit.

The BRPC Group is also permitting a North Tarn No. 1 well on state lease ADL 390680 located one mile west of the western boundary of the Kuparuk River unit.

If the group doesn’t drill North Tarn No. 1 this winter, it plans to drill it in the winter of 2011-2012.

Brooks Range Petroleum Corp. is a subsidiary of Kansas-based Alaska Venture Capital Group and the operator of an on-going exploration program on behalf of a joint venture including TG World Energy Inc., and the Nabors-subsidiary Ramshorn Investments Inc.

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