Kerr-McGee Extends NW Milne Point with Nikaitchuq #2 Well

In January, Kerr-McGee announced its entrance into the prolific North Slope basin of Alaska. Since that time, the company has drilled a successful exploration and appraisal well on the NW Milne Point prospect. The Nikaitchuq #1 vertical well production tested more than 960 barrels of oil per day of 38 degree API crude oil from the Sag River Formation. If developed, horizontal wells would most likely be utilized, which would be expected to produce at higher flow rates than the vertical well. The Nikaitchuq #2 well was drilled 9,000 feet southeast of the #1 well and successfully extended the accumulation down dip. The company currently is evaluating the data collected and re- calibrating 3-D seismic of the area to define appraisal drilling plans for the upcoming winter drilling season.

Kerr-McGee operates NW Milne Point with a 70% interest and holds 12,000 acres in the area with the option to acquire an additional 54,000 acres. Armstrong Alaska, Inc. holds the remaining 30% interest.