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October 2000

Vol. 5, No. 10 Week of October 28, 2000

Phillips begins permitting for major North Slope exploration season

Kristen Nelson

PNA News Editor

The focus for winter 2000-2001 North Slope exploration will be on the west side — stretching from the National Petroleum Reserve-Alaska to the borders of the Kuparuk River unit.

And, based on applications the state had received by Oct. 20, there will be a considerable amount of activity.

Phillips Alaska Inc. has begun the application process to allow drilling and testing operations at as many as 29 new winter exploration locations on the North Slope using as many as four rigs; the company already has approvals for five NPR-A locations approved last year but not yet drilled. Not all of the permit applications have yet been filed and Phillips Alaska spokeswoman Dawn Patience told PNA that the final winter exploration program probably will not receive board approval until sometime in November. “We will participate in 12 to 15 exploration wells, up from nine last year. But we expect the budget to be about the same,” Patience said.

Two of three wells drilled in the National Petroleum Reserve-Alaska last winter will be tested this winter season, and additional wells drilled at those prospects, according to applications filed so far by Phillips.

In addition to NPR-A exploration drilling, Phillips is permitting winter exploration wells in the Alpine area and west of the Kuparuk River unit. Five of the Alpine area wells are planned for Kuukpik Corp. surface land.

Five wells at approved sites

Phillips has told the state that it proposes to drill up to five exploratory wells in NPR-A at previously permitted locations and test the Rendezvous A and 1 Spark wells drilled and temporarily suspended in 1999-2000.

“Clover A, which was drilled during the winter of 1999-2000, will not be part of this winter’s program,” Phillips said in applications submitted in October. “Rendezvous A and Spark #1, which were also drilled during the winter of 1999-2000, will be revisited this winter to perform additional well evaluations,” the company said.

Previously approved, yet to be drilled NPR-A well sites include Clover B, Lookout A, Moose’s Tooth A, Moose’s Tooth C and Rendezvous B. Phillips said up to four reservoir penetrations (up to two wells and up to two sidetracks) and one ice drill pad are planned for each of the previously approved locations; on-site well testing may be conducted at any of these well locations.

Phillips said rolligons may be used to mobilize a small camp, equipment and personnel needed to construct an ice pad. If this scenario is followed, the company said, the drilling rig is expected to move to the first exploration site by rolligon with a probable spud date around Jan. 1. The company has applied for early access to the tundra for ice road and pad construction and if that authorization is received, ice road and pad construction could begin as early as Dec. 1. Approximately 45 miles of rolligon trail would be constructed.

Sixty miles of ice road are planned, beginning at Kuparuk drill pad 2L, extending along the Alpine pipeline, and then continuing west into NPR-A.

New NPR-A prospects

In addition to NPR-A locations approved and not yet drilled, Phillips has added additional well sites at the prospects it plans to test this year — four well sites at Spark, Nos. 2-5, and two at Rendezvous, Nos. 1-2.

Three new NPR-A prospects have been added — Hunter, Outlook and Oxbow.

The Hunter prospect is farthest from previous Phillips’ staking and drilling, extending the company’s work some 12 miles southwest of the Rendezvous prospect sites, which were the farthest southwest work by Phillips’ predecessor ARCO Alaska Inc. last year. Sunrise was originally listed as an NPR-A prospect, but Phillips said in its most recent applications that the prospect will be drilled from Kuukpik Corp. surface land. That prospect is northwest of Nuiqsut south of the Alpine West prospect.

Outlook is between previously staked locations at Lookout A and Spark No. 1. Oxbow is east of the Rendezvous Nos. 1 and 2 prospects.

Prospects in Kuparuk area

Kuparuk River area prospects for which applications have been submitted include Palm adjacent to the Kuparuk River unit in the northwest and Atlas adjacent to Kuparuk in the southwest. Phillips said the 1 Palm exploration well will be reached by a five-mile ice road from Kuparuk drill site 3G. The proposed surface location for the Palm well is just outside the Kuparuk River unit on a lease owned by Phillips Alaska, BP, ExxonMobil, Chevron and Unocal. The ice pad at Palm will be approximately 500 feet by 500 feet and is sized to house the rig, a modular camp, satellite camp and ancillary equipment. The modular camp structure will house up to 70 people; the satellite camp will house up to 24.

Phillips said that flow testing may be conducted if hydrocarbon liquids are discovered; produced liquids would be transported to Kuparuk for processing or re-injected. Produced gas would be flared.

Ice road construction for Palm is estimated to begin Dec. 20, drilling Jan. 15 to Feb. 4, testing Feb. 5 to Feb. 26 and demobilization mid-May or at tundra closing.

Phillips has not yet submitted applications for the Atlas exploration prospect west of Kuparuk at the southwest corner of the unit, but two Atlas wells are noted in other applications. The area indicated is on state leases held by Phillips.

Alpine area prospects

Phillips has announced a discovery at Fiord north of Alpine, and has applied to drill the Fiord No. 6 exploratory well north of Alpine in February from an ice pad. Three locations in the Colville River unit are under consideration, Phillips said. The site will be reached by a 12-mile ice road from Alpine drill site CD-2. The specific area of interest is approximately six to eight miles northeast of Alpine drill site CD-2.

The ice pad at Fiord will be approximately 500 feet by 500 feet and is sized to house the rig, modular camp, satellite camp and ancillary equipment.

Phillips said in early October that the drilling rig had not yet been selected for the project. If flow testing is conducted, fluids would be transported to Alpine or Kuparuk by truck for processing or would be re-injected. Produced gas would be flared. Drilling at Fiord would be from Feb. 20 to March 14, with testing from March 14 to April 10. All equipment would be demobilized by mid-May or tundra closing.

Also on state lands are the Nigliq prospect west of Fiord (two wells possible) and the Nanuq prospect south of Alpine (two wells possible). Phillips has not yet submitted Nanuq applications, but in other applications two Nanuq wells are listed for the prospect east of Sunrise.

Two Nigliq exploration pads are planned with as many as three reservoir penetrations at 1 Nigliq (one well and as many as two sidetracks) and as many as two reservoir penetrations at 2 Nigliq (one well and one sidetrack). Ice pads will be 500 feet by 500 feet, and the ice road to Nigliq will be off Phillips’ ice road to NPR-A. This prospect is adjacent to the Beaufort Sea coast, and Phillips noted: “Native hunters sometimes take polar bears near the Beaufort Sea coast.” Phillips said there will be polar bear watchers at the exploration sites. The company said it is aware that its activities must not interfere with this subsistence activity.

Phillips said the Nigliq wells are on Kuukpik surface lands with partial subsurface ownership by the state and will be in the Colville River unit, pending late 2000 expansion of the unit.





Unocal names Alaska vice president

Kristen Nelson

Unocal Corp. has named Charles Pierce vice president, Unocal Alaska, the company said Oct. 6. Pierce, who joined Unocal in 1984, has held various positions in drilling, production, reservoir engineering and project management in Texas, Thailand, Egypt and the Netherlands.

Unocal Alaska spokeswoman Roxanne Sinz told PNA the appointment was effective Sept. 15 and that Pierce relocated to Alaska the first week of October.

Since 1996, Pierce has had responsibility for business development and commercial issues in Bangladesh and India. He most recently served as the project manager for Bangladesh gas export, including project advocacy, partnership negotiations and U.S. government relations.

Pierce has a bachelor of science degree in mechanical engineering from the University of Texas.

In his new assignment, Pierce will focus on business strategies and the assessment of upstream growth opportunities for Unocal Alaska. He will be based in Anchorage.

Martin Morell, oil and gas operations manager for Unocal Alaska, will continue to manage upstream operations in Alaska, reporting to Pierce.

Formerly part of Unocal’s agricultural products business unit, the company’s Cook Inlet oil and gas business now reports through Unocal’s North American oil and gas organization to Tim Ling, Unocal’s executive vice president for North American energy operations.


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