Alaska Oil and Gas Conservation Commisssion - Conservation Order No. 462.001

STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

333 West Seventh Avenue, Suite 100

Anchorage Alaska 99501

ADMINISTRATIVE APPROVAL NO. 462.01

Mr. John Isby
Endicott Development Geologist
BP Exploration (Alaska) Inc.
P. 0. Box 196612
Anchorage, AK 99519-6612

Re: Spacing Exception for Endicott 3-33A/J-35 Well

Dear Mr. Isby:

The Alaska Oil and Gas Conservation Commission (“Commission”) received your correspondence dated February 2, 2004 requesting a waiver of spacing requirements for drilling and completion of the Endicott 3-33A/J-35 well. This proposed well will produce from subzone 2A of the Kekiktuk Formation, and it will lie within 1,000 feet of the existing Endicott 4-38/K-34 well, which has open perforations in subzone 2A.

Conservation Order 462 (“CO 462”) governs the Endicott Oil Pool. Rule 3 of CO 462 states in part: “The pool may not be opened in a well closer than a 1000 feet to any well opened to the pool.” The information you submitted indicates that a pressure-sealing fault separates subzone 2A in well 3-33A/J-35 from that same subzone already opened by well 4-38/K-34. The fault-separation of the proposed and existing wells is substantively equivalent to the requirements of Rule 3 in CO 462.

Rule 3 also provides that the “Commission may administratively approve modifications to well spacing when justified.” The Commission has determined drilling and completion of the Endicott 3-33A/J-35 well will enhance recovery, and it will not promote waste or jeopardize correlative rights. The Commission hereby approves the drilling, completion and production of Kekiktuk subzone 2A within Endicott 3-33A/J-35 as proposed.

The Alaska Oil and Gas Conservation Commission

DONE at Anchorage, Alaska and dated February 3, 2004.

John K. Norman, Chair
Commissioner

Daniel T. Seamount, Jr.
Commissioner

BY ORDER OF THE COMMISSION


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