Alaska
Pioneer entered Alaska in 2002, recognizing the opportunity to bring an independent's mindset of streamlining processes and reducing costs to a landscape previously dominated by major oil companies where medium-sized prospects had been left untapped. As one of the first independents to operate on the North Slope, Pioneer demonstrated a capacity to work in extreme environments by building ice islands in subzero temperatures and drilling three exploration wells during an abbreviated winter season, leading to the discovery of the Oooguruk field.
In 2006, after extensive engineering and geologic evaluations, Pioneer approved Oooguruk as our first field development project in Alaska and immediately launched field development activities. The field is five miles offshore in approximately five feet of water, and during 2006 and 2007, a gravel island was built and outfitted with facilities to accommodate development drilling and field operations expected to begin in late 2007.
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| To more effectively explore for and develop new fields in Alaska, Pioneer is tackling complex prospects and field development with an emphasis on lowering costs and maximizing recoverable reserves. |
Pioneer expects first oil production from Oooguruk during the first half of 2008 and first sales mid-year, when the Company will become the first independent to operate a producing field on the North Slope. Production is expected to peak during 2010 at 15,000 to 20,000 gross barrels of oil per day from about 40 development wells (approximately half of the wells will be producing wells and half will be injection wells).
From exploration wells to first production, Pioneer expects to bring Oooguruk online in less than five years – an unprecedented cycle time for a new, offshore field on the North Slope.
In the Cook Inlet in southern Alaska, Pioneer is pursuing a similar opportunity to develop the Cosmopolitan field, which was discovered more than 30 years ago. The Company participated in a 3-D seismic survey covering the field in 2005 and is the operator. Pioneer recently drilled a horizontal appraisal well, accessing the reservoir from a drilling pad onshore, and has begun extensive testing to evaluate the field’s commercial potential.
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