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August 2001

Vol. 6, No. 8 Week of August 28, 2001

Phillips submits applications for Colville River satellite development

Two satellites, to north and south of Alpine, will develop Nanuq and Fiord discoveries; production expected third quarter 2003

Kay Cashman

PNA Publisher

Phillips Alaska Inc. submitted applications in early August to state agencies and the U.S. Army Corps of Engineers for the development of Colville Delta South and Colville Delta North, both Alpine satellite.

Hydrocarbons from both satellites will be processed at Phillips Alpine facilities.

Nanuq south of Alpine

CD South, commonly known as “Nanuq” from the first exploration well in that area, is approximately 4 miles south of the Alpine CD1 drilling site. Several exploration wells have been drilled near the proposed project, including the Nanuk in 1996 and the Nanuq 3 last winter.

Phillips and partner Anadarko Petroleum Corp. announced the 40 million barrel Nanuk discovery in July and said the field was discovered in April 2000 with the Nanuq No. 2 exploration well and delineated from the Alpine CD1 drill site with the Nanuq CD1-229 well in 2001.

The CD South project includes construction of a gravel pad to support drilling and production facilities that will connect to Alpine’s central processing facility by a 3.8 mile all weather gravel road. It will require approximately 358,000 cubic yards of gravel over a 38-acre area.

The proposed pipelines connecting the CD South satellite to the Alpine CPF include a 20-inch diameter three-phase production line, an 8-inch diameter gas miscible injection line, a 10-inch water line and a 4-inch gas lift line.

Approximately 40 wells will be drilled from the new pad on a continual basis for approximately 40 months.

Phillips plans to begin construction of CD South’s drilling pad and access road in February 2002 with start-up of production in the third quarter of 2003.

Fjord development to the North

Hydrocarbons from Colville Delta North — the 50 million barrel Fiord discovery announced in 1999 by then partners ARCO Alaska Inc. and Anadarko — would also be processed at existing Alpine facilities.

CD North, generally known as the Fiord prospect, is approximately 8 miles north of the Alpine CD-1 drilling site. The proposed project would consist of a standalone drilling pad with a dedicated 6,000 foot, gravel airstrip. No access road is proposed for the development.

The project would require approximately 462,000 cubic yards of gravel over approximately 37.3 acres. Approximately 40 wells will be drilled from the new pad on a continual basis for approximately 40 months.

The proposed pipelines connecting the CD North satellite to the Alpine CPF include a 20-inch diameter three-phase production line, an 8-inch diameter gas miscible injection line and a 10-inch water line.

Phillips hopes to begin construction of CD North’s drilling pad and airstrip in February 2002 with start-up of production in the third quarter of 2003.






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