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February 2007

Vol. 12, No. 7 Week of February 18, 2007

Eni files to drill two more Maggiore wells

The Italian major’s U.S. affiliate has already drilled three wells this winter, its first season as an operator on Alaska’s North Slope

Kay Cashman

Petroleum News

On Feb. 9, Eni US Operating Co. asked the State of Alaska for authorization to drill two additional wells at Eni Petroleum’s North Slope Maggiore prospect. Both companies are U.S. subsidiaries of U.S. E&P affiliates of Italy’s Eni SpA, one of the world’s largest oil and gas companies.

Eni told the state’s Division of Oil and Gas that it has already drilled three wells this season — its first season as an operator on the North Slope and in Alaska. Using Nabors Rig 27E, Eni drilled two wells in its Rock Flour prospect (Rock Flour No. 2 and 3) and one at Maggiore (Maggiore No. 1) from a “snow/ice road system that travels south from existing facilities and infrastructure at Kuparuk River Unit MP 1.”

The Rock Flour prospect is adjacent to the southeast corner of the Kuparuk River unit and directly south and west of the Prudhoe Bay unit boundary. Boundary to boundary Maggiore is about four miles south of Rock Flour.

The two additional Maggiore wells are approximately 26 miles southwest of Deadhorse at these locations: Maggiore No. 2: T. 08 N., R. 11 E., Umiat Meridian; Latitude: 70o 03’ 54”N. Longitude: 149o 21’ 22” W. and Maggiore No. 3: T. 08 N., R. 11 E., Umiat Meridian; Latitude: 70o 04’ 20” N. Longitude: 149o 27’ 00” W.

Rock Flour No. 2, the first well Eni drilled this winter, is in the northernmost Rock Flour lease, ADL 390695. Heading southwest from MP1 it’s about two miles to Rock Flour No. 2.

The second well drilled, Rock Flour No. 3, is on ADL 389118 and was the farthest south well that Eni proposed to drill in the Rock Flour prospect, as per the plan of operations the company filed with the division last fall. The ice road splits about one mile south of MP1. It’s another nine miles south to Rock Flour No. 3.

Between Rock Flour wells No. 2 and 3 on ADL 390696 was the location for another well, Rock Flour No. 4. A map included with Eni’s Feb. 9 request said the company no longer intends to drill that well.

Maggiore No. 1, the third well drilled this season, is approximately 15 miles south of Rock Flour No. 3 on ADL 390660. The two additional wells Eni hopes to drill this season are about five miles north and west of Maggiore No. 1.

Antigua in between

The Antigua oil prospect lies between Rock Flour and Maggiore, as do other leases owned by Chevron and Pioneer.

Antigua No. 1, drilled, plugged and abandoned by ConocoPhillips last winter, was unsuccessful.

Authorized to do so by law, the division set the public notice comment period for Eni’s two additional Maggiore wells at 21 vs. 30 days, presumably to give the company a reasonable chance to get at least one of the wells completed in what remains of northern Alaska’s short winter drilling season.

Eni first entered Alaska in August 2005 when it acquired the exploration assets of Armstrong Oil and Gas. The major has continued to pick up lease interests onshore and offshore the North Slope, including federal and state offshore interests in partnership with Shell.

Eni’s first Alaska production will likely come in 2008 from its 30 percent interest in the Beaufort Sea Oooguruk prospect operated by Pioneer.






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