February 25, 2003 --- Vol. 9, No. 23February 2003

ConocoPhillips permits sidetrack at Cosmopolitan

ConocoPhillips Alaska Inc. has received a drilling permit for a sidetrack at the Cosmopolitan prospect near Anchor Point on the southern Kenai Peninsula.

The Alaska Oil and Gas Conservation Commission approved the drilling permit for the Hansen 1A Feb. 18. The directional well is from an onshore surface location in section 2, township 4 south, range 15 west, Seward Meridian, to an offshore bottomhole location in section 32, T3S-R15W, SM.

ConocoPhillips' first well at the prospect, the Hansen No. 1, was spud in October 2001 and reached total depth in early January 2002. The drilling pad for the project is on private land on a bluff overlooking Cook Inlet north of Anchor Point. Pennzoil Co. found oil and gas in the area in 1967, drilling offshore with a jack-up rig.

A joint state-federal Cosmopolitan unit, 24,600 acres and nine leases, was approved in November 2001.

Unit operator ConocoPhillips and Forest Oil Corp. are the major owners. Robert Boswell, president and chief executive officer of Forest Oil, told an IPAA Investment Symposium in April that the prospect is being evaluated for commercial development.

"It tested oil in the Hemlock and in the Tyonek (formations)," he said. The exploration well was an 18,000 foot well, he said.

Reports to the state on the first well are still confidential.

Pipeline tariff filed for Moquawkie gas

Beluga Pipeline Co. has filed a tariff revision with the Regulatory Commission of Alaska to add a new receipt point on its system for connection with a natural gas gathering system to be constructed by Aurora Gas LLC. Beluga is also applying to add a new rate schedule for transportation of natural gas from the new Moquawkie receipt point to the existing delivery point on the Beluga system. The proposed rate for service is 12.43 cents per thousand cubic feet. Beluga is asking for an effective date of March 12.

Aurora Gas said Jan. 9 that it had closed on its previously announced acquisition of Anadarko Petroleum Corp.'s entire Cook Inlet lease holdings and had begun installation of the Lone Creek gas gathering system and anticipates that the project will be completed in the first quarter of the year. The six-inch, six-mile line will connect the Lone Creek No. 1 well to the Marathon-owned and operated Beluga pipeline.

Aurora said it will be delivering natural gas from the Lone Creek well to the Alaska Pipeline Co. for Enstar Natural Gas Co. system requirements.

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