ConocoPhillips, Anadarko Startup First Alpine Satellite Field

ConocoPhillips and Anadarko Petroleum Corp. on Wednesday announced the successful startup of the first Alpine satellite oil field, known as the Fiord field. The Fiord oil field is located five miles north of the Alpine oil field on Alaska's North Slope. Fiord is expected to have peak production of approximately 22,500 barrels of oil per day (BOPD) gross in 2008.

Discovered in 1999, Fiord was developed exclusively with horizontal well technology and will employ enhanced oil recovery, similar to the Alpine field. The currently approved plan for Fiord development will entail approximately 17 wells.

Fiord is a roadless drill site that will be supported by aircraft or accessible by an ice road in the winter. Construction of the field and the second Alpine satellite, Nanuq, involved more than 1,400 people over the past two winter seasons. To minimize environmental impact, 50 miles of temporary ice roads constructed during winter were used to move construction equipment, facilities, drilling rigs and drilling supplies to the site and nearby Alpine oil field. Alpine is located 35 miles west of Kuparuk on the border of the National Petroleum Reserve-Alaska.

Nanuq is scheduled for startup later this year. Production from Fiord and Nanuq will be processed through the existing Alpine facilities. Together, the two fields represent approximately $650 million in capital reinvestment and are expected to have peak production of approximately 35,000 BOPD gross in 2008.

In addition to the Fiord and Nanuq satellites, ConocoPhillips is pursuing state, local and federal permits for additional Alpine satellite developments, including the recently announced Qannik reservoir and Alpine West, which would be the first development within the National Petroleum Reserve-Alaska. Further development of additional National Petroleum Reserve satellites are anticipated over the next several years.

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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