ARCO, BP, Exxon file to expand Prudhoe Bay; new participating area also to be formed

Kristen Nelson

PNA News Editor

ARCO Alaska Inc., BP Exploration (Alaska) Inc. and Exxon Corp. have applied to the Alaska Department of Natural Resources Division of Oil and Gas for a 1,068-acre expansion of the Prudhoe Bay unit and for the formation of a new participating area, Midnight Sun, containing approximately 3,739 acres.

The companies jointly announced the Midnight Sun discovery last February. It was one of a double discovery adjacent to Prudhoe Bay on the north made in the 1 Sambuca well, which encountered a 100-foot vertical section of oil and gas bearing rock in Kuparuk sands at a measured depth of 11,662 feet. Oil and gas also were found in a 160-foot vertical section of rock in the Sag/Ivishak formation at a measured depth of 12,965 feet.

The interval of oil and gas bearing rock in the Kuparuk formation was named Midnight Sun. It tested approximately 4,000 per day of 29 API gravity oil and 1.5 million standard cubic feet of gas per day. The Sag/Ivishak formation, named Sambuca, tested 1,400 barrels per day of 24 API gravity oil and 490,000 standard cubic feet of gas per day.

The discovery was made on a lease in which ARCO and Exxon each own a 50 percent interest. The well was directionally drilled from within the Prudhoe Bay unit. Long-term test production from the well was slated for last year.

BP Exploration, as Prudhoe Bay western area operator, served as drilling operator on the well on behalf of ARCO and Exxon. BP Exploration will pay part of the cost of the well in exchange for well data. The three companies also hold leases adjacent to the Sambuca and Midnight Sun discoveries.

The inclusion of the 1,068 acres would bring the total Prudhoe Bay unit area to approximately 245,983 acres.

Comments on the application must be received by Jan. 7 at the Division of Oil and Gas, ATTN: Michael D. Kotowski, units manager, 550 W. 7th Ave., Ste. 800, Anchorage, AK 99501-3560.