STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

333 West Seventh Avenue, Suite 100

Anchorage Alaska 99501

Re: THE APPLICATION OF Alaska Crude ) Conservation Order No. 488
Corporation ("ACC") for an order granting )
an exception to the spacing requirements of ) Moose Point Unit #1
20 AAC 25.055(a)(2) to provide for the ) Re-entry and Testing
re-entry and testing of the Moose Point )
Unit #1 well in an undefined gas pool. ) April 3, 2003

IT APPEARING THAT:

1) ACC, by letter dated January 23, 2003 and received by the Commission on January 28, 2002, has requested an order allowing a spacing exception in accordance with 20 AAC 25.055 to re-enter and test the plugged and abandoned Moose Point Unit #1 exploratory well for gas within 1500 feet of a property line.

2) ACC submitted additional information on January 30, February 7, February 10, March 14 and March 25, 2003 in support of the application.

3) The Commission published notice of opportunity for public hearing in the Anchorage Daily News on February 14, 2003 and the Peninsula Clarion on February 14, 2003, pursuant to 20 AAC 25.540. In addition, ACC submitted proof of notice of the application by certified mail to all offset owners, landowners, and operators of all properties within 3000 feet of the proposed test interval in the Moose Point Unit #1 well.

4) No protests to the application or comments were received.

FINDINGS:

1) The surface location of this well is 2512 feet from the North line ("FNL") and 2124 feet from the East line ("FEL") of Section 14, T9N, R9W, Seward Meridian ("S.M."). The location of the proposed test interval and the bottom hole location of this vertical well are the same as the surface location.

2) The well was plugged and suspended by the original operator, AMAREX, Inc., on March 15, 1978. The status of the well was changed to plugged and abandoned by the Commission on March 15, 1979.

3) The well is within 140 feet of a property line where ownership changes.

4) An exception to the well spacing provisions of 20 AAC 25.055 (a)(2) is necessary in order to re-enter and test the well for gas within 1500 feet of a property line.

CONCLUSIONS:

1) An exception to 20 AAC 25.055(a)(2) is necessary to allow re-entry and testing of the Moose Point Unit #1 well.

2) Granting a spacing exception to allow re-entry and testing of the Moose Point Unit #1 well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners.

3) Before regular production is permitted from the Moose Point Unit #1 well, the Commission must take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the re-entering the well as an exception, and so that drainage to the tract with respect to which the exception is granted will be prevented or minimized. AS 31.05.100(b).

ACC's application for exception to the well spacing provision of 20 AAC 25.055(a)(2) for the purpose of re-entering and testing the Moose Point Unit #1 well is approved. The Moose Point Unit #1 well may not be placed on regular production until the Commission takes additional action, upon petition, and after notice and hearing, to offset any advantage ACC may have over other owners by reason of re-entering Moose Point Unit #1 to the exception location and to allow affected owners to produce their just and equitable share of hydrocarbons.

DONE at Anchorage, Alaska and dated April 3, 2003.

Sarah Palin, Chair
Alaska Oil and Gas Conservation Commission

Randy Ruedrich, Commissioner
Alaska Oil and Gas Conservation Commission

Daniel T. Seamount, Jr., Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order Index