Pacific Energy to Return Platform Eureka Back to Production
Pacific Energy Resources Ltd. announced the Minerals Management Service (MMS), United States Department of Interior, has approved the Company's request for the "Pipeline Change of Service and Corrosion Protection and Monitoring Plans for the 6-inch and 10-inch Platform Eureka to Elly pipelines."
Pacific Energy took over operations of the Beta Oil Filed in March 2007. Since that time, the Company has been working on mechanical repairs and inspections of facilities and pipelines to satisfy safety and regulatory requirements. This work has allowed the Platform Eureka connection to be re-established. The offshore platform has been idle sine June 1999 due to the condition of the sub-sea pipeline that enables the transportation of crude oil to neighboring Platform Elly.
Production from Eureka is scheduled to commence in April 2008 as the first 5 oil producing wells of a total of 34 wells are turned on. Production from this first phase is expected to be between 1,000 and 2,000 barrels per day. The Company's plan is to return the platform to full production by third quarter 2008. Year-end 2008 production from the Beta Oil Field is projected to be in excess of 7,000 barrels per day.
Darren Katic, Pacific's President said "This is the moment that Pacific and its shareholders have been waiting for. The major hurdles have been removed and we have a pipeline that re-establishes our ability to move oil produced from Platform Eureka to market. We will now begin the process of returning the wells to production."
Platform Eureka is part of the Beta Oil Field. The Beta Field is located in San Pedro Area, in Federal waters nine miles offshore Long Beach, California (Federal Leases POCS 300, 301 and 306) a complex of two production platforms (Eureka and Ellen) and a facilities platform (Elly) to handle production from these leases. The Beta Field was discovered in 1976 by Shell Oil Company. Production started in 1981 from Platform Ellen. Production began on Platform Eureka in 1985. Peak production from the Beta Field was 20,800 barrels of oil per day in 1986. The original oil in place is estimated to be 600 million barrels of which approximately 17 percent has been produced to date. Platform Eureka accounted for nearly 38 million barrels of oil from 1985 until the production was idled in 1999, at which time it was averaging over 4,400 barrels of oil per day.
Under the forecast price scenario, Netherland Sewell & Associates Inc. (NSAI) estimated net Proved Reserves of 18,360,000 barrels oil as of Dec 31, 2007 for the Unit. It also estimated 10,640,000 barrels of net Probable oil reserves (net Proved & Probable Reserves of 29,000,000 barrels), and 30,150,000 barrels of net Possible oil reserves. These reserve estimates are in accordance with the requirements of Canadian National Instrument 51-101 - Standards of Disclosure for Oil & Gas Activities and the Canadian Oil & Gas Evaluation Handbook (COGEH).
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