STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF BP                   )  Conservation Order No. 369
EXPLORATION (ALASKA) INC.                  )
for an order granting an exception         )
to spacing requirements of Conservation    )  BP Exploration (Alaska) Inc.
Order No. 205 to provide for the drilling  )  Milne Point Unit F-6
of the Milne Point Unit F-6 development    )
oil well.
                                              January 25, 1996

IT APPEARING THAT:

1. BP Exploration (Alaska) Inc. submitted an application dated January 4, 1996 requesting exception to the well spacing provisions of Conservation Order 205 to allow drilling the Milne Point Unit F-6 development oil well to a producing location within the southwest quarter of Section 35 T14N R9E Umiat Meridian (UM).

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on January 9, 1996 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Milne Point Unit F-6 well as proposed will be a deviated hole drilled from a surface location 1799' from the south line (FSL) and 2873' from the east line (FEL) of Section 6, T13N, R10E, UM to a proposed producing location 3550' FSL and 4399' FEL of Section 35, T14N, R9E, UM.

2. Offset owners Oxy USA, Inc. and ARCO Alaska, Inc. have been duly notified.

3. The proposed producing location for the subject well is within the southeast quarter of Section 35, T14N, R9E, UM, which contains the Milne Point Unit F-1 development oil well.

4. An exception to the well spacing provisions of Conservation Order No. 205 is required for the Milne Point Unit F-6 development oil well as the second production well in a quarter section adjacent to the Kuparuk River Unit boundary.

CONCLUSION:

Granting a spacing exception to allow drilling of the Milne Point Unit F-6 well to the southeast quarter of Section 35, T14N, R9E, UM will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

BP Exploration (Alaska) Inc.'s application for exception to the well spacing provisions of Conservation Order 205 for the purpose of drilling the Milne Point Unit F-6 well is approved.

DONE at Anchorage, Alaska and dated January 25, 1996.

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

J. David Norton, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order Index