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February 2001

Vol. 6, No. 2 Week of February 28, 2001

Phillips files draft environmental evaluation for two new pads at Colville

Proposal is for construction to start next winter, facilities to be completed in 2002-2003 and production to start in late 2003

Kristen Nelson

PNA Editor-in-Chief

The Colville Delta unit west of Kuparuk, where Phillips Alaska Inc. and Anadarko Petroleum Corp. started up the Alpine field in mid-November, could see two satellites in production by the end of 2003.

While the companies have not made a final determination that the accumulations are commercial, Phillips has filed a draft environmental evaluation document proposing facilities and alternatives for development of Colville Delta South — approximately four miles south of the Alpine central processing facility — and Colville Delta North approximately five miles north of Alpine.

“Presently,” Phillips said, “these accumulations have not been deemed commercial and are dependent on future delineation drilling to confirm commerciality,” but the company said each is estimated to contain 50 million barrels of reserves. If they do prove commercial, Phillips and Anadarko could start pad, road and airstrip work next winter.

The Nanuk exploration well (Colville Delta South) was drilled in 1996 and Phillips said the accumulation was described in Alpine development plans as a possible find directly to the south between Alpine and Nuiqsut.

Phillips Alaska predecessor ARCO Alaska Inc. and Anadarko started drilling at Fiord (Colville Delta North) in 1992 and announced a discovery there in 1999 after the 5 Fiord tested 2,500 barrels of oil per day in two formations. The companies said then that Fiord could be the first Alpine satellite.

Construction next winter

Phillips told the state that a gravel drill site would be built at each prospect with three-phase (oil, water and gas) hydrocarbon production to the Alpine central processing facility. The company would connect Colville Delta South (Nanuk) to Alpine with a 3.8-mile gravel all-weather road. Access to Colville Delta North (Fiord) would be via a 6,000-foot airstrip.

The Colville Delta South pad would be west of the Alpine sales oil pipeline corridor and east of the Nigliq channel of the Colville River. Pipe from this pad would proceed east on new vertical support members for a short distance and then consolidate with the Alpine sales oil pipeline for four miles to the Alpine pad. The Colville Delta South road, pad and pipelines would be built in the winter of 2001-2002. Construction would be completed in 2002. Final installation of facilities, pipeline and utilities would be in 2003 and production would begin in late 2003.

The Colville Delta North pad and airstrip would be between the west and east Ulamnigiaq channels. The pad, airstrip and pipeline would be built in the winter of 2001-2002 and development drilling would begin after completion of the pad. Final airstrip grading would be done in 2002. Final facilities, pipeline and utilities installation would be in 2003 and production would start in late 2003.

Phillips said Colville Delta North airstrip is sized to handle a C130 Hercules but normal access would be by smaller aircraft.






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