Pioneer sale of Alaska assets to Caelus closes

NEWS BULLETIN January 06, 1999 --- Vol. 5, No. 1 January 1999 Preliminary approval for Nuiqsut gas pipeline Leases for Kuvlum, Hammerhead relinquished BP January term oil price $9.37 a barrel BP America's January term price for Alaska North Slope crude is $9.37 a barrel, down $2.08 a barrel (18.2 percent) from December's term price of $11.45 a barrel and down 42.9 percent from January 1998's term price of $16.41 a barrel. This is the lowest BP's term price has been since July 1986 when it stood at $9 a barrel. The term price represents an average of spot prices for the previous month. Print this story Petroleum News - Phone: 1-907 522-9469 [email protected] --- https://www.PetroleumNews.com S U B S C R I B E CLICK BELOW FOR A MESSAGE FROM OUR ADVERTISERS.

Phillips Petroleum Co. said Jan. 6 that it is taking a $71 million write off for costs associated with the Tyonek Deep prospect in Alaska. But, Phillips' spokeswoman Kristi DesJardais told PNA, the project has not been canceled. "We're just going to wait on oil prices to improve in order to commercialize the project," she said Jan. 6. Jim Konst, Phillips' Alaska operations manager, told PNA that drilling is complete at the Tyonek Deep prospect. Phillips has been working on three Tyonek Deep wells. "We've finished our testing of the B-1 sidetrack," he said. "We have tested two wells and run completion tubing in the third well that we've identified for the project. They're essentially ready for production." Konst said the company is still evaluating the reservoir and how to make a viable project out of it. "It isn't viable under today's conditions," he said, "but we are still working on making it a viable project." He said that the write off occurred essentially due to low oil prices. Phillips said that it expects a loss of 1,400 jobs worldwide as it takes "steps to reduce costs and increase available cash flow in 1999." Konst said that Phillips will be making operation cost reductions to improve the profitability of Alaska operations, but said there wasn't an immediate impact in the state. Alaska, he said, is still viewed as a growth area for the company.