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NEWS BULLETIN

June 21, 2011 --- Vol. 17, No. 55June 2011

State receives largest number of Cook Inlet bids in 28 years

Pioneer Natural Resources Alaska has told the Alaska Department of Environmental Conservation that it plans to drill two wells at its Cook Inlet Cosmopolitan prospect, beginning this summer. Pioneer has applied for renewal of an oil discharge prevention and contingency plan. The company told DEC the wells would be drilled in the summers of 2007 and 2008 from the onshore Hansen well site on the Kenai Peninsula some six miles north of Anchor Point as sidetracks from the existing well which was drilled in the autumn and winter of 2001-02. Pennzoil found oil and gas at the prospect in 1967 drilling from a jack-up rig. A third plan of exploration, approved in August, called for a well to be drilled beginning on or before Nov. 14, 2007. Phillips Alaska (now ConocoPhillips Alaska), the previous operator at Cosmopolitan, drilled the Hansen 1 and a sidetrack, the Hansen 1A. Note: See full stories in the Feb. 25 issue of Petroleum News, which will be available online at noon Alaska-time on Friday, Feb. 23, at www.PetroleumNews.com

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