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June 2001

Vol. 6, No. 6 Week of June 25, 2001

Evaluations of three NPR-A discoveries Phillips’ top priority

Testing, probably one or two more penetrations, collection of more data planned for 2001-02 winter season, says Mike Richter

Kristen Nelson

PNA Editor-in-Chief

Further evaluation of discoveries made in the National Petroleum Reserve-Alaska in the 2000 and 2001 winter exploration seasons is at the top of Phillips Alaska Inc.’s 2001-02 winter exploration list.

Mike Richter, Phillips Alaska’s vice president of exploration and land, told PNA that while the company is just starting to plan for next winter’s exploration, the number one priority is going to be finishing the evaluation of those three discoveries.

The company announced both NPR-A discoveries and a new Kuparuk satellite in May following this winter’s exploration season and said five wells and a sidetrack in NPR-A encountered oil or gas and condensate. Phillips said it believes those successful wells have encountered three separate hydrocarbon discoveries.

This winter Phillips Alaska was operator for 10 exploration wells and participated in two, the Trailblazer wells drilled by BP Exploration (Alaska) Inc. in NPR-A.

Asked about the company’s exploration plans for next year in a May 30 interview, Richter told PNA that Phillips is just starting with plans for next year and doesn’t even know what the rig availability will be.

But the number one priority will be the NPR-A discoveries.

“We need to go back in and do some testing. We’ll probably have another penetration or two and collect more data. So that’s number one,” Richter said.

He said Phillips would like to participate in some additional NPR-A exploration, and would “almost certainly” be doing some exploration south of Kuparuk.

Phillips is just beginning permitting now for winter 2001-02 exploration work.

2001 work still in progress

And two exploration wells remain to be drilled this year, Richter said.

“One’s in Cook Inlet, which is the Hansen well, an onshore well that will be deviated to the offshore. Phillips began permitting for this prospect in April (see story about the Cosmopolitan prospect in May issue of PNA).

Phillips is permitting up to two wells with sidetracks from private surface and bottom holes on a state lease in Cook Inlet at this prospect. The company said in its permit application that the Cosmopolitan project drilling pad will be some 5.5 miles north of Anchor Point and a half mile west of the Sterling Highway.

Construction is planned for this summer, with drilling beginning in September and continuing for 150 to 240 days.

Richter said he thought the Hansen well might have the longest reach of any well in Cook Inlet, although he said there are some pretty long-reach wells at the West McArthur River field.

“It’s not the longest in Alaska, that’s Niakuk. This is some 15,000 feet. And the North Slope wells reach further,” Richter said.

Second well from Meltwater pad

“And the second well is an exploration well to be drilled from the Meltwater pad,” Richter said. The Meltwater development, where a pad and pipelines were installed this winter, is some 10 miles south of Tarn at the southwestern corner of the Kuparuk River unit. The field will produce from the Bermuda sand accumulation drilled in the Meltwater discovery wells in 2000.

At a pool rules hearing in May at the Alaska Oil and Gas Conservation Commission, Phillips said the thinner Cairn accumulation to the east of Bermuda will be tested this summer. Phillips told the commission that while Bermuda is the primary target at Meltwater, Cairn production is also possible, although the company said there were fewer opportunities for Cairn targets and more risk.

Richter said the exploration target is the second accumulation at Meltwater.

Palm satellite will be developed like Tarn

Phillips also announced a new Kuparuk satellite, Palm, as a result of this winter’s exploration drilling and Richter said it would be developed as another Kuparuk pad, tying back into Kuparuk facilities. Palm, which is west of Kuparuk, is on the north end of the field, so it will be tied into the northern processing center at the field.

Asked if any of Phillips’ NPR-A discoveries could be tied back into Alpine, Richter replied: “The first thing I’d say is we don’t know how we’re going to develop it. But the distances are such that is it possible to utilize some of the Alpine facilities.

“Now is that the development people will pursue? I don’t know. That’s all I can say. The closest well is only eight miles from the edge of the unit, maybe 15 miles” from Alpine production facilities.

Meltwater is 25 miles from Kuparuk production facilities and is being tied back into that field’s facilities.






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