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August 2004

Vol. 9, No. 32 Week of August 08, 2004

ConocoPhillips applies for expansion of Alpine oil pool

Company estimates area to north and west of North Slope field contains some 31-55 million barrels of oil in place

Kristen Nelson

Petroleum News Editor-in-Chief

ConocoPhillips Alaska believes the Alpine oil field may extend farther to the north and west than originally believed, and has applied to the Alaska Oil and Gas Conservation Commission to expand the area of the Alpine oil pool covered by the commission’s production and injection orders.

The proposed expansion area is within the Colville River unit, and drilling would be from Colville River unit drill site CD2.

ConocoPhillips said information for the requested expansion comes from results of its development drilling, which “has greatly increased our knowledge of the distribution of the sands” in the Alpine participating area and has allowed it to better correlate seismic data with reservoir sands. Original oil in place in the expansion area is estimated at 31 million to 55 million barrels, and the company said that range “will undoubtedly change as new drilling information becomes available.”

ARCO Alaska Inc., ConocoPhillips Alaska’s predecessor, told the commission in 1999 that Alpine contained an estimated 960 million barrels of oil in place, and that with horizontal wells and a miscible water-alternating-gas oil recovery process implemented at startup, recovery was expected to be 45 percent, or some 429 million barrels.

At a midpoint in the 31 million to 55 million barrel range the proposed expansion area would add less than 5 percent to oil in place at the field.

Five additional wells planned

Five wells are planned in the expansion area, all on tracts leased from the state and the Arctic Slope Regional Corp., and the company told the commission it has applied to drill the wells as tract operations. Once production has been established from the expansion area, the company said, it would apply to the Alaska Department of Natural Resources and Arctic Slope Regional Corp. to expand the Alpine participating area, the acreage within the unit from which production occurs.

Existing Alpine facilities will be employed to process the oil produced, the company said.

ConocoPhillips told the commission that it has tested vertical net pay thickness in the northern row of wells, and estimates it has 19 to 40 feet of reservoir quality Alpine sand “at the toe of the current northern row of development wells at CD2.”

The company said it expects to continue its pattern of horizontal wells into the extension area. It is possible “that lower quality reservoir rock will be encountered in the proposed expansion area,” in which case propped hydraulic fracture stimulation may be evaluated.

CD2 was designed to accommodate 60 wells, ConocoPhillips said, and no new gravel is expected to be needed for the expansion.

Alpine, which came on line in November 2000 at some 80,000 barrels per day, has recently been producing at 100,000 to 105,000 bpd, and facilities expansion work this year and next will increase produced water handling capacity and allow production of 140,000 bpd.

The Colville River unit itself was expanded to the northwest earlier this year, and a new prospect, Iapetus, will be drilled in that area by June 2005, according to the terms of the unit expansion, with a second well by June 2006.





Want to know more?

If you’d like to read more about the Alpine oil field on Alaska’s North Slope, go to Petroleum News’ web site and search for the following articles, which represent just a few of those published in the last few months:

Web site: www.PetroleumNews.com

2004

• July 25 Hydrology holds up Alpine final EIS

• July 11 Alpine satellite final EIS delayed

• June 27 Work under way

• May 16 Alpine expansion work update

• May 2 Colville River unit expansion approved

• April 18 Work could begin at Alpine satellites next winter

• March 21ConocoPhillips dominates Alaska exploration

• March 7 Phase 2 of Alpine capacity expansion approved

• March 7 ConocoPhillips hikes capex spending abroad, in Alaska

• March 7 Shoppers guide for facilities close to completion

• Feb. 29 State of Alaska begins Alpine satellite project review

• Feb. 15 Drilling under way

• Feb. 8 Technology key to ANS production increases, with sidebar titled: Alpine capacity could be expanded to 135,000 barrels of oil per day

• Feb. 8 Alpine, Northstar fields hit new production highs

• Jan. 25 Extending the Spine

• Jan. 18 Alternatives to Alpine satellite project proposed

• Jan. 18 The beat moves west


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