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September 1999

Vol. 4, No. 9 Week of September 28, 1999

ARCO, Anadarko increase producible estimates from Alpine

Recovery now expected to be 429 million barrels, up 17.5 percent, with peak production of 80,000 barrels per day by 2001

Kristen Nelson

PNA News Editor

The Alpine field contains more recoverable oil than originally estimated, and more wells will be drilled at the field than earlier planned, operator ARCO Alaska Inc. and partner Anadarko Petroleum Corp. said Aug. 26.

Recovery is now expected to hit 429 million barrels of oil, up from a 1997 estimate of 365 million barrels, the companies said. The 17.5 percent increase in projected recovery, an additional 64 million barrels, will also up daily production rates, now projected to peak at 80,000 barrels a day by 2001, up 10,000 barrels a day from a previous peak estimate of 70,000 barrels a day.

Production is expected to begin in mid-2000 with initial production of 40,000 barrels per day.

Changed drilling plan

The companies originally planned 94 wells, both horizontal and conventional. Now, subject to final regulatory approval, the companies will drill 112 wells — all horizontal penetrations — for a total of more than 60 miles of reservoir penetrations.

Doyon Drilling Inc.’s rig 19 is presently drilling at Alpine. ARCO Alaska spokeswoman Dawn Patience told PNA Aug. 27 that nine development wells have been drilled at Alpine so far, beginning in March after the rig was brought out on last winter’s offshore ice road.

Enhanced oil recovery will be implemented at field start up, using miscible injectant from gas in the field. The companies said the EOR project, combined with the additional horizontal wells, will account for the increase in production and reserves.

“This has been a landmark year for development of the Alpine oil field. As we gather more information about the reservoir, it continues to exceed our expectations,” said Kevin Meyers, president of ARCO Alaska Inc. Meyers said that start up of the field would help to offset the decline in North Slope oil production.

“Alpine represents another Alaska oil industry success story and is a model for technological advances and environmental sensitivity,” said John Seitz, president of Anadarko.

The companies said they will invest more than $1 billion, $750 million of that in Alaska, by the time the project is complete. Employment on the project peaked last winter with approximately 1,600 employed in Fairbanks, Anchorage, Nikiski, the Matanuska-Susitna Borough and on the North Slope.

Ryan Lance, ARCO Alaska Inc. vice president for the western North Slope, noted that work on Alpine is continuing. “Alpine’s recently completed, Alaska-built production facilities arrived on the North Slope in early August,” he said. Modules are being stored at Kuparuk until ice roads are completed in early 2001 for the move to Alpine, he said.

Alpine is owned 78 percent by ARCO and 22 percent by Anadarko. The 40,000-acre field is 34 miles west of the ARCO-operated Kuparuk River field. Alpine surface development will be on 97 acres, with access by ice roads in the winter for construction equipment, production facilities, drilling rigs and drilling supplies and by air the remainder of the year.






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