Phillips Alaska, BP mark North Slope discovery

Journal Record, The (Oklahoma City), May 3, 2000

ANCHORAGE, Alaska (JR) -- Phillips Alaska and BP Exploration (Alaska) on Tuesday announced the first oil discovery of this year on Alaska's North Slope.

The Meltwater discovery is estimated to contain about 50 million barrels of proven and potential reserves.

The exploration well Meltwater North No. 1, located about 10 miles south of the Tarn oil field in the Greater Kuparuk Area, tested at 4,000 barrels per day of 37-degree API gravity oil. A second exploration well and sidetrack, Meltwater North No. 2 and No. 2A, confirmed a northern portion of the reservoir.

The Meltwater discovery was made on acreage purchased in June 1998 in the first areawide lease sale ever conducted by the State of Alaska. Phillips Alaska, a subsidiary of Bartlesville-based Phillips Petroleum, holds a 58.46 percent interest and BP Exploration holds a 41.54 percent interest in the Meltwater North No. 1 well.

Meltwater has the potential to be the fourth Kuparuk satellite field to begin production, the two companies reported. The West Sak field began production in 1997, and Tarn and Tabasco fields began production in 1998.

"State areawide leasing and the application of advanced 3-D seismic technology made this discovery possible in less than one year," said Michael Richter, vice president of exploration and land, Phillips Alaska. "This discovery marks a new era in the Alaska oil industry. This is Phillips Alaska's first discovery as a new company and the first discovery this century for the State of Alaska."

F.X. O'Keefe, exploration business unit leader for BP Exploration (Alaska), said the goal is to bring the new field on production as quickly as possible.