 August 14, 2003
"The purpose of the proposed well is to acquire key information for use in evaluating the petroleum potential of the as yet untested area and may yield important data," said Murkowski. "The proposed well would be drilled where it is designed to maximize the recovery of information about a potential reservoir, not to gather oil. Following the completion of data gathering the site would be abandoned. A qualified oil and gas company with a proven safety record would operate the proposed well." Information gathered from such a well would include the properties of potential reservoir rocks (porosity, permeability, thickness, and rock type). The information yielded by the well would also include the geologic ages and formations present in the area, information on oil or gas source rock, information on the type and timing of creation of geologic structures in the area, and petrophysical measurements that will allow the well information to be correlated to both onshore and offshore seismic data. It is expected that environmental standards similar to those used at the McCovey well would be employed. Data from the well would be available to participants who would share in the cost of the well. Participation in the well is
open to all organizations that are willing to share proportionally
in the well cost. It is expected that the well would qualify
for a forty- percent severance tax credit. The well would be
required to go through the normal permitting requirements for
an oil or gas well. Earliest potential spud date for the well
is winter 2004-2005.
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