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NEWS BULLETIN

August 05, 2003 --- Vol. 9, No. 77August 2003

Aurora Gas begins production at Lone Creek on west side of Cook Inlet

Aurora Gas has begun production from its Lone Creek No. 1 gas well on the west side of Cook Inlet, the company said Aug. 5. Aurora is 100 percent owner and operator at Lone Creek.

“The well is currently flowing at a rate of about 5 million cubic feet per day,” said Ed Jones, Aurora’s executive vice president, engineering and operations. “We had planned to immediately take the well to 10 million cubic feet per day, but we are having to make some minor adjustments to our production facility to handle this volume.”

The company said it has spent the last eight months installing a six mile, six-inch gathering line from the well site to a newly constructed interconnect with Marathon’s 16-inch Beluga pipeline and installing dehydration and compression facilities at the well pad.

“So far the well is performing every bit as strong as we expected,” said Jones. “The pipeline and facilities have been essentially complete and ready to go for more than a month; however, start-up was delayed while finishing our sales meter telemetry system.”

The company’s president, Scott Pfoff, said “We are extremely pleased to finally have Lone Creek Well No. 1 on production. We plan for this well to contribute to the gas needs of Southcentral Alaska for the next 10 to 15 years.”

Lone Creek is Aurora's second Cook Inlet gas field. The company began production at the Nicolai Creek field, also on the west side of Cook Inlet, in 2001, and its 2003 well work program will begin there.

Jones said Aurora has "mobilized the Aurora Well Service Rig No. 1 from Nikiski to the west side of the inlet” and is “rigging up on Nicolai Creek well No. 3 for a workover. From there, the rig will move to the southern end of the field and drill a new well, the Nicolai Creek well No. 9.”

Editor's note: see story in Aug. 10 issue of Petroleum News.

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