STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF BP                      )  Conservation Order No. 352
EXPLORATION (ALASKA), INC.                    )
for an order granting an exception            )
to spacing requirements of Title              )  BP Exploration (Alaska), Inc.
20 AAC 25.055 to provide for the              )  Badami No. 4
drilling of the BP Badami No. 4               )
exploration oil well.                         )
                                                 January 6, 1995
IT APPEARING THAT:

1. BP Exploration (Alaska), Inc. submitted an application dated December 19, 1994 requesting exception to 20 AAC 25.055(a)(1) to allow drilling the BP Badami No. 4 exploration oil well to a producing location in an undefined oil pool that is closer than 500 feet to a statewide drilling unit boundary.

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on December 21, 1994 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The BP Badami No. 4 well as proposed will be a deviated hole drilled from a surface location 5160' from the north line (FNL) and 3884' from the east line (FEL) of Section 3, T9N, R20, Umiat Meridian (UM) to a proposed bottom-hole location of 2187' FNL and 3668' FEL of Section 3, T9N, R20E, UM.

2. Offset owner Petrofina Delaware, Inc. has been duly notified.

3. An exception to 20 AAC 25.055(a)(1) is necessary to allow drilling of this well.

CONCLUSION:

Granting a spacing exception to allow drilling of the BP Badami No. 4 well as proposed will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

BP Exploration (Alaska), Inc.'s application for exception to 20 AAC 25.055 for the purpose of drilling the Badami No. 4 well is approved as proposed.

DONE at Anchorage, Alaska and dated January 6, 1995.

David W. Johnston, Chairman
Alaska Oil and Gas Conservation Commission

Russell A. Douglass, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order Index