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August 2002

Vol. 7, No. 34 Week of August 25, 2002

Winter work to include new pads for Phillips, infield drilling for BP

Kristen Nelson, PNA editor-in-chief

Projects from infill wells at existing fields to development pads in the National Petroleum Reserve-Alaska are on the drawing board for the North Slope. Some are under way, others will be done over this winter and some are only in the evaluation stages, North Slope operators told agencies in mid-August.

BP Exploration (Alaska) Inc. will focus on development field work, Phillips Alaska Inc. is looking at both development and exploration drilling and Anadarko Petroleum Corp. and EnCana Corp. plan exploration drilling, the companies told agencies in mid-August.

Phillips is also working with regulators on plans for its announced Colville River unit satellite drilling pads, CD South (the Nanuk discovery) and CD North (the Fiord discovery) and for three possible development drilling pads in NPR-A.

EnCana, Anadarko exploring

State officials told PNA that projects range from EnCana’s McCovey project — with the SDC in place ready to begin work later this year — to drilling and construction still in the discussion stage. EnCana has no production in Alaska, but has exploration acreage across the slope, including NPR-A, Beaufort Sea, traditional North Slope and the Foothills. The company towed the SDC to the McCovey prospect in the Beaufort Sea this summer and has the drillship unoccupied and in quiet mode until after the whaling season. Drilling will begin in November and drilling and testing of the well will continue until mid-March 2003, when the SDC will again go into quiet mode.

Anadarko, which is a partner in the Phillips Alaska-operated Alpine field and drilled at Altamura in NPR-A last winter, plans to drill one or two 3,500-foot core wells as part of its gas hydrate research project and also to explore in the Foothills, where it has permit applications submitted for the Arctic Char and Dolly Varden and is looking at other prospects.

BP plans infield work

BP Exploration (Alaska) has told the state it will be drilling from existing pads within existing fields. The company will shoot onshore seismic at Prudhoe Bay and is planning a third low temperature separation unit for the central gas facility.

At Milne Point, S pad is going into operations and planning is under way for drilling and pipelines at tract 14.

BP is also continuing to evaluate the Liberty prospect.

Phillips looks at exploration and development

Phillips Alaska had already told agencies that it plans to drill from one to four exploration wells in the 2002-03 winter season in NPR-A and on state and private lands west of Kuparuk. In 2001-02 the company drilled seven exploration wells, three in NPR-A and four on state lands.

Phillips stacked a rig on an insulated pad in NPR-A west of Lake Teshekpuk at Puviag south of Smith Bay last spring and Puviag is one of the exploration wells the company is looking at for the 2002-03 season. Some logistical support for that well may come from Barrow. The company is looking at the possibility of over summering a rig at a different NPR-A site following this winter’s drilling season.

In addition to Puviag, possible NPR-A exploration prospects include Powerline, Grandview, Carbon and Summit. On state and private lands west of Kuparuk prospects include Cronus, Oberon, Placer, No. 3 Sunrise and Titania.

Phillips also told the state that it is looking at west North Slope development, with two satellite pads in the Colville River unit and three potential pads in NPR-A.

Phillips has begun permitting work for the Colville River satellite pads (CD north for the Fiord discovery and CD south for the Nanuq discovery) and said it is discussing appropriate permitting procedures with agencies and looking at a construction target of the winter of 2005-06.






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