STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF BP                )  Conservation Order No. 339
EXPLORATION (ALASKA)                    )
INC. for an order granting              )
an exception to spacing                 )  BP Exploration (Alaska), Inc.
requirements of Title                   )  Niakuk 19
20 AAC 25.055 to provide                )
for the drilling of the BP Niakuk       )
19 exploratory oil well                 )
                                           October 3, 1994

IT APPEARING THAT:

1. BP Exploration (Alaska), Inc. submitted an application dated September 14, 1994 requesting exception to 20 AAC 25.055(a)(1) to allow drilling the BP Niakuk 19 exploratory oil well to a location that is closer than 500 feet to a drilling unit boundary.

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on September 16, 1994 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The BP Niakuk 19 well as proposed will be a deviated hole drilled from a surface location 3846' from the north line and 815' from the east line (FEL) of Section 36, T12N, R15E, Umiat Meridian (UM) to a proposed bottom-hole location of 35' from the south line and 951' FEL of Section 25, T12N, R15E, UM.

2 BP Exploration (Alaska) Inc. is the sole owner of all offsetting spacing units.

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

CONCLUSION:

Granting a spacing exception to allow drilling of the BP Niakuk 19 well as proposed will not result in waste nor jeopardize correlative rights.

NOW; THEREFORE, IT IS ORDERED:

BP Exploration (Alaska), Inc.'s application for exception to 20 AAC 25.055 for the purpose of drilling the Niakuk 19 well is approved as proposed.

DONE at Anchorage, Alaska and dated October 3, 1994.

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

Russell A. Douglass, Commissioner
Alaska Oil and Gas Conservation Commission

Tuckerman A. Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order Index