STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
3001 Porcupine Drive
Anchorage Alaska 99501-3192

THE APPLICATION OF ANADARKO             )         Conservation Order No. 425
PETROLEUM CORPORATION for                  )
an order granting an exception to spacing        )
requirements of 20 AAC 25.055 to provide      )         Anadarko Petroleum Corporation
for the drilling of the Lone Creek No. 1              )         Lone Creek No. 1
exploratory oil well from the Moquawkie            )
prospect located on the west side of the           )
Cook Inlet.                                                             )

                                                                                          June 10, 1998

IT APPEARING THAT:

Anadarko Petroleum Corporation submitted an application dated April 20, 1998 requesting exception to the well spacing provisions of 20 AAC 25.055(a)(1) to allow drilling the Lone Creek No. 1 exploratory oil well to a bottom-hole location that is closer than 500 feet from a quarter section line.

The Commission published notice of opportunity for public hearing in the Anchorage Daily News on April 25, 1998 pursuant to 20 AAC 25.540.

No protests to the application were received.

FINDINGS:

1. The Lone Creek No. 1 exploratory oil well will be drilled as a straight hole with a surface location of 200' from the south line and 1800' from the east line of Section 18, T12N, R11W, Seward Meridian

2. Offset owners Mobil Exploration & Producing North America Inc., Marathon Oil Company and Cook Inlet Region, Inc. have been duly notified.

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

CONCLUSION:

Granting a spacing exception to allow drilling of the Lone Creek No. 1 exploratory oil well will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

Anadarko Petroleum Corporation's application for exception to the well spacing provisions of 20 AAC 25.055(a)(1) for the purpose of drilling the Lone Creek No. 1 exploratory oil well is approved.

DONE at Anchorage, Alaska and dated June 10, 1998.

David W. Johnston, Chairman

Camillé Oechsli, Commissioner

Conservation Order No. 425
June 10, 1998

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