Alaska Oil and Gas Conservation Commisssion - Conservation Order No. 457A.004 Corrected

STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

333 West Seventh Avenue, Suite 100

Anchorage Alaska 99501

Corrected ADMINISTRATIVE APPROVAL NO 457A.004 and 22B.002

Mr. Gil Beuhler
GPB Waterflood Resource Manager
BP Exploration (Alaska) Inc.
P. 0. Box 196612
Anchorage, AK 99519-6612

Dear Mr. Beuhler,

By letter dated December 6, 2004, BP Exploration (Alaska), Inc. (“BPXA”) requested authorization to extend current pilot miscible injection (MI) operations in Aurora Oil Pool (“AOP”) Wells S-112, S-110 and S-116 (“Pilot Operations”). The Commission on May 11 gave approval for Pilot Operations through December 31, 2004. Due to operational delays and low injection rates, only S-110 has been on miscible gas injection, and only 1/3 of the total miscible injectant volume planned for the Pilot Operations has been injected. You have stated that, with favorable conclusive results from the Pilot Operations, you will apply for a larger scale project.

The Commission finds that the requested change will not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater.

The Commission approves continuation of MI injection through September 30, 2005 into AOP Wells S-112, S-110 and S-116, subject to the conditions, limitations, and requirements set out in AIO 22B and CO 457A and statewide regulations under 20 AAC 25 (to the extent not otherwise superseded by AIO 22B and Conservation Order 457A). It is a condition of this approval that BPXA provide written documentation to the Commission of the results of the Pilot Operations no later than October 31, 2005.

DONE at Anchorage, Alaska and dated January 10, 2005.

John K. Norman
Chairman

Daniel T. Seamount, Jr.
Commissioner


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