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September 2000

Vol. 5, No. 9 Week of September 28, 2000

BP applies to expand Prudhoe Bay unit

Aurora participating area to include portions of two leases outside unit at northwest corner, portions or all of five leases already in unit

Kristen Nelson

PNA News Editor

BP Exploration (Alaska) Inc. has applied to the Alaska Department of Natural Resources Division of Oil and Gas to enlarge the Prudhoe Bay unit to include all of the Aurora participating area — and to form the Aurora participating area.

Aurora lies at the northwest corner of the Prudhoe Bay unit and the participating area will include parts of two leases not currently in the unit (ADL 28255 and ADL 28256) and parts or all of five leases already in the unit (ADL 28257, ADL 28258, ADL 28259, ADL 28261 and ADL 47448). All of the leases have a 12.5 percent state royalty.

Approximately 3,840 acres would be added to the Prudhoe Bay unit, bringing it to approximately 249,477 acres. The Aurora participating area would be 10,720 acres.

Drilling begun

Drilling at Aurora began in July from S pad. The S-100 Prudhoe Bay Unit Aurora well was permitted in June, the S-101 Prudhoe Bay Unit Aurora well in early August and the S-102 Prudhoe Bay Unit Aurora well in early September.

BP said the owners plan phased drilling of approximately 15 to 20 production and injection wells, all from S pad. Phase I, which began July 1, includes between three and six wells, no more than four of which will be dedicated producers.

Aurora development will use existing Prudhoe Bay infrastructure of pipelines, roads and pads. Additional gravel has been placed adjoining the northern part of S pad to accommodate wells and drilling beyond phase I. The Aurora owners will install, as necessary, vertical support members and flow lines and plan to install an injection water line on existing and future vertical support members.

Production is expected to begin in October. BP said the owners are evaluating a water flood option for the Aurora reservoir.

Water injection could begin the first quarter of 2001 with producer-injector pairs during phase I, expanding to pattern injection during phase II. A water treatment skid may be installed for local water separation.

BP also said the Aurora owners will evaluate and determine the need for tertiary recovery projects, including but not limited to conversion of water flood injectors to miscible injectant/water alternating gas injection. That option, BP said, would be post-phase II development.

Phase II is likely to begin in the first quarter 2001 and be accomplished in two to three years.

Discovery made in 1999

BP told the state that the proposed Aurora participating area encompasses a reservoir within the Kuparuk River formation shown productive by the V-200 well.

The Aurora discovery was announced in March 1999. The V-200 well encountered a 58 foot vertical section of oil-bearing sand which tested at more than 1,900 barrels per day of 30 degree API gravity oil and 1.3 million standard cubic feet of gas per day.

The accumulation is estimated to contain 20-35 million recoverable barrels of oil.






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