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September 2000

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

BP sets plans for National Petroleum Reserve-Alaska exploration

Five-year Trailblazer project will run from December 2000 through November 2005; one to six wells could be drilled in any one year

Kristen Nelson

PNA News Editor

BP Exploration (Alaska) Inc. has begun the permitting process for a five-year National Petroleum Reserve-Alaska exploration program slated to begin this winter. BP staked locations last year, but did no exploratory drilling.

The company’s Trailblazer prospect, with as many as eight possible well pad locations, adds two locations to those staked last year.

The company told regulators it “has obtained 2D and 3D seismic data that, along with NPR-A and Colville well information, indicate significant recoverable oil potential exists within NPR-A.

“The purpose of the Trailblazer exploratory drilling program,” BP said, “is to confirm whether significant reserves exist on leases held by BPXA and its partners.”

The five-year program, BP said, is in conjunction with partners Chevron and Phillips and drilling is contingent on permits, partner consensus and funding — and could shift from the winter of 2000-2001 to the future.

Extensive ice road planned

The prospect will be reached by a 54 mile grounded sea ice road on the Beaufort Sea from Oliktok Point to the Kalikpik River and by a 16 mile ice road over tundra from the mouth of the river to A pad, the company’s first planned location.

BP said it may be able to use the Phillips Alaska Inc. Alpine ice road if sharing agreements can be negotiated. Ice construction would take place from December to February; a rig would be mobilized in February; the first well would be spud about mid-February and if significant hydrocarbons were found, wells may be tested.

One ice airstrip will be built each year, either on the grounded shallow ledge of a lake or on the tundra as a wide spot in the ice road system.

Northwest of earlier drilling

While BP did not drill in NPR-A last winter, ARCO Alaska (now Phillips Alaska) did, but closer to existing infrastructure at Alpine, approximately west of Nuiqsut. BP’s Trailblazer prospect is northwest of Nuiqsut, and about twice as far into NPR-A. BP said its initial ice pad would be in sections 13 and 14 of township 12N, range 3W, Umiat Meridian. This is on a tract for which partners BP (50 percent), Chevron (30 percent) and Phillips (20) percent paid $608.28 an acre at the 1999 federal NPR-A lease sale.

Six of the pads, A through F, were staked last year, two (G and H) this year. BP said that except for H, the pads are approximately three miles apart.

In any one year, the company said, one to six wells could be drilled from one to six ice pads. One or two rigs may be used; sidetracks may be drilled.






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