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NEWS BULLETIN

May 16, 2003 --- Vol. 9, No. 53May 2003

Alpine expansion Phase I a go

ConocoPhillips and Anadarko Petroleum unveiled plans today to increase oil production capacity at the Alpine field on Alaska's North Slope.

The companies said the Alpine capacity expansion project phase 1 acronym ACX1 will come on line late next year. ACX1 will increase both water and gas handling capacities of the Alpine plant, allowing for increased oil production and maintenance of reservoir pressure.

Additional expansion opportunities are still being studied, the companies said.

A 5,000 barrel-per-day production increase is expected from the $60 million phase 1. Production began at Alpine in November 2000 and current production averages 100,000 bopd.

There are 68 wells at Alpine, all developed with horizontal well technology, 34 producers and 34 injectors, at the two Alpine drill sites. A total of 94 wells are planned.

Enhanced oil recovery is in place at Alpine. Both the well design and EOR will help extract more oil from the reservoir, the companies said.

ACX1 design engineering is by NANA/Colt Engineering in Anchorage and the companies said truckable module fabrication will be put out for bid once detailed engineering is complete. VECO Alaska has already been awarded the ACX1 North Slope construction contract.

ConocoPhillips Alaska operates the Alpine field, which is owned 78 percent by ConocoPhillips and 22 percent by Anadarko Petroleum.

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