Pioneer Updates Oooguruk Field Development
Pioneer Natural Resources Company announced that development activities at its Oooguruk field on the North Slope in Alaska are progressing on schedule and the production processing and services agreement with the Kuparuk River Unit owners has been completed and signed. Under the agreement, production from Oooguruk will be transported by flowline to facilities at the Kuparuk River Unit for processing and subsequent transport through the Trans Alaska Pipeline System. The Kuparuk River Unit is operated by ConocoPhillips Alaska, Inc.
The production handling agreement is the first of its kind between the owners of two North Slope units and an important milestone for the Oooguruk project which will be the first field operated by an independent oil company in the history of the North Slope.
Pioneer expects first oil production from Oooguruk during the first half of 2008, with first sales by mid-year. Production is expected to peak during 2010 at 15,000 to 20,000 gross barrels of oil per day from approximately 40 development wells (approximately half of the wells will be producing wells and half will be injection wells). Pioneer operates the field with a 70% working interest. ENI Petroleum Co. Inc. holds a 30% working interest in the field. From exploration wells to first production, Pioneer expects to bring Oooguruk on line in five years, an unprecedented cycle time for a new, offshore field on the North Slope.
"We are very appreciative of the cooperation received from the owners of the Kuparuk River Unit in completing this production handling agreement," stated Scott Sheffield, Pioneer's Chairman and CEO. "Oooguruk production facilities are in place, and drilling is underway with plans to drill 13 to 15 wells during 2008. We expect the project to generate steady growth as more wells are drilled each year through 2010. Steady growth from this project and our other assets is the basis for the 12+% growth target we've set for company-wide annual compound average production per share growth through 2011."
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