Oil Discovery

by The Associated Press

Philadelphia (AP) — Two American oil companies reported Thursday an Alaskan discovery of “one of the largest petroleum accumulations known to the world.”

The field appears to lie on a 90,000 acre block on the arctic slope of Alaska, the announcement said. The discovery was reported by Atlantic Richfield and Humble Oil and Refining Company, in a joint venture.

“In our opinion,” said the oil consultant firm of Degoyler and MacNaughton of Dallas, “this discovery could develop into a field with recoverable reserves of some 5 to 10 billion barrels of oil.Ó This would make it one of the largest in the world the firm said.

The location was reported in the general area of Prudhoe Bay, 390 miles north of Fairbanks and 150 miles southeast of Point Barrow.

The consulting firm made a study of the area around the two wells, Prudhoe Bay No. 1 and Sag River State No. 1.

The oil strike at Sag River No. 1 was announced June 25. It is seven miles from Prudhoe Bay No. 1, where oil and gas finds were announced six months ago.

Rep. Howard W. Pollock, R-Alaska, told the Associated Press in Juneau today by telephone from Washington the Degoyler-MacNaughton analysis is regarded by oil company officials as conservative.

Dale Wallington, deputy commissioner of natural resources, said in Juneau he believed the estimate is conservative also, but said Degoyler-MacNaughton is one of the oldest and most highly respected consulting firms in the business.

By comparison with the latest announcement, reserves at Swanson River field in Southcentral Alaska are put at around 1 billion barrels.

Reports of the discovery had been rumored around Wall Street for about a month, a broker said.

—Southeast Alaska Empire July 18, 1968