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NEWS BULLETIN

March 01, 2001 --- Vol. 7, No. 25March 2001

Aurora Gas tests Nicolai Creek well at 4 million cubic feet a day

Aurora Gas LLC has tested its Nicolai Creek unit workover project on the West Side of Cook Inlet at 4 million cubic feet a day.

The Nicolai Creek unit No. 3 well, shut in for more than 20 years, was cleaned out, re-perforated and gravel packed in December and tested last week, the company said Feb. 28. A sustained flow rate of more than 4 million cubic feet of natural gas per day was attained from the five commingled perforated intervals of the Upper Tyonek formation at depths of 1,900 feet to 2,380 feet.

Aurora’s executive vice president and the project manager, Ed Jones, said the company was extremely pleased with the test.

“We have been very anxious to test the well since the well work was completed just before Christmas. It has taken until now to obtain the necessary equipment, but it has been well worth the wait,” he said.

“Success on this test was critical to our future intentions to develop the Nicolai Creek Unit: we can now proceed with our plans to rework or drill at least two additional wells.”

G. Scott Pfoff, president of Aurora’s gas marketing affiliate, Aurora Power Resources Inc. said, “Bringing the Nicolai Creek Unit on production is a very significant step for us. We have now joined the ranks of Cook Inlet operators, something few companies, if any, our size have accomplished."

Aurora will commence work on installation of production facilities and a 4-inch pipeline to put the well on production.

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