ConocoPhillips, Anadarko to Develop Alpine Satellites

ConocoPhillips and Anadarko Petroleum have approved the development of two Alpine satellite oil fields on Alaska's North Slope. The project was sanctioned following recent favorable Record of Decision rulings from the Bureau of Land Management and the Corps of Engineers on the Alpine Satellites Environmental Impact Statement.

The project will include two satellite drill sites -- CD 3 on the Fiord oil field, and CD 4 on the Nanuq oil field. Both will be located within an 8-mile radius from the ConocoPhillips-operated Alpine oil field on the border of the National Petroleum Reserve-Alaska.

Plans call for the drilling of approximately 40 wells, with first production scheduled for late 2006 and peak production of approximately 35,000 barrels of oil per day (BOPD) gross in 2008. The satellite oil fields will be developed exclusively with horizontal well technology and employ enhanced oil recovery, similar to the Alpine field.

The oil will be processed through the existing Alpine facilities. Originally estimated to produce 80,000 BOPD gross, the Alpine field is currently producing an average of 115,000 BOPD gross. Combined production from the Alpine field and these two satellites is expected to peak at 135,000 BOPD gross in late 2007.

To minimize impact, temporary ice roads, constructed during winter, will be used to move construction equipment, facilities, drilling rigs and drilling supplies to the sites. The project will also include the first roadless drill site (CD 3), which will only be accessible by air most of the year.

The companies will continue to pursue the outcome of state, local and federal permits for the three remaining Alpine satellite developments in the National Petroleum Reserve-Alaska. A final decision to move forward on these three satellite oil fields will not be sanctioned until after the outcomes of remaining permits are known.

Alpine, Nanuq and Fiord oil fields owners are: ConocoPhillips Alaska Inc. (a subsidiary of ConocoPhillips), 78 percent; and Anadarko Petroleum Corp, 22 percent.

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