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January 2008

Vol. 13, No. 1 Week of January 06, 2008

Brooks Range permits backup prospects

Kristen Nelson

Petroleum News

As previously reported by Petroleum News, Brooks Range Petroleum Corp.’s North Slope winter exploration plans include re-entering its North Shore 1 well and drilling at its Tofkat prospect (see story in Oct. 28 issue). BRPC has Nabors rig 27 under contract for the season and has started permitting moving on seven other possibilities as options for the back half of the season.

Jim Winegarner, vice president of land for Brooks Range Petroleum Corp., told Petroleum News Jan. 2 that the company will re-enter the North Shore 1 well and then move on to Tofkat. A second well could be drilled at Tofkat, or the rig could move back to North Shore, where there are two other wells that could be drilled.

Two plans of operations submitted to the state in November and public noticed in mid-December cover seven other possible well locations, only one of which is on a lease the company controls.

That lease is held by AVCG LLC, Alaska Venture Capital Group. AVCG is one of the joint venture partners in BRPC, the operator for the joint venture, along with TG World Energy Inc., Nabors subsidiary Ramshorn Investments Inc. and Bow Valley Alaska Corp.

The other prospects being permitted are on UltraStar Exploration LLC leases (three prospects); on leases held by ExxonMobil, ConocoPhillips, BP Exploration (Alaska) and Chevron (two prospects); and one prospect on a lease held by ExxonMobil, ConocoPhillips and BP.

Winegarner said the permitting is in advance of farmout agreements and is being done to create options for the back half of the season.

One of the permitting packages is for the UltraStar exploration project north of the Prudhoe Bay unit, approximately two miles east of the Point McIntyre No. 1 drill site in section 18 of township 10 north, range 14 east, Umiat Meridian, on state oil and gas lease ADL 389944, a lease held by UltraStar.

BRPC said in its application that UltraStar is the owner of the lease and BRPC would serve as operator for the exploration program.

In its plan of operations for the UltraStar exploration program, BRPC said up to two wells would be drilled from a single ice pad in section 18 T10N-R14E, UM, within state oil and gas lease ADL 389944. The ice pad is north of the Prudhoe Bay unit and east of the Kuparuk River.

A two-mile ice road would begin at BP Exploration (Alaska)’s PM-1 pad in section 21, T12N-R14E, UM. BRPC said it planned to pre-pack the ice road alignment with approved tundra travel vehicles.

The other permitting plan is for the East Shore exploration project. This is the area that includes prospects on leases held by ExxonMobil, ConocoPhillips, BP Exploration (Alaska) and Chevron, as well as one lease held by AVCG and one held by UltraStar.

The UltraStar prospect is identified as East Shore Dewline. Jim Weeks, managing member of UltraStar, told Petroleum News last year that he expected BP to manage drilling of UltraStar’s Dewline Deep No. 1 well, which was to be drilled from BP’s Point McIntyre 1 drill pad. Weeks said Jan. 3 that Brooks Range’s involvement would give his company another option.

This plan includes two ice pads north of the Prudhoe Bay unit approximately three miles northeast of T pad in Prudhoe Bay in section 24 of T12N-R13E, UM. AVCG is the owner of state oil and gas lease ADL 389947, the proposed surface locations. The ice pads would be accessed by a three-mile ice road from existing gravel infrastructure within the Prudhoe Bay unit, BRPC said in its application.

Editor’s note: Jim Weeks is speaking at the Alliance’s Thursday morning breakfast Jan. 10 about the challenges for small companies drilling on the North Slope, including the most recent challenge brought on by the passage of a new tax regime for Alaska. The breakfast is at the Petroleum Club in Anchorage. For reservations call 907 563-2226 or sign up online at www.alaskaalliance.com.






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