Escopeta Oil & Gas and BBI Inc. of Houston reported that they have received new seismic reprocessing results that show estimated recoverable reserves of 12 Tcf of natural gas near the East Forelands area of Alaska’s Cook Inlet Basin, at depths of 18,000 to 21,000 feet. The companies said known producing horizons in the same structural trend would likely recover 1.35 billion barrels of oil and an additional 6.1 Tcf of gas.

The companies said the estimated recoverable reserves are considerably more than the current remaining reserves of 2.56 Tcf in the Cook Inlet Basin and may total more than the cumulative recovery throughout the entire history of natural gas production in Alaska (about 10 Tcf). Escopeta said the Prudhoe Bay fields in comparison hold an estimated 36 Tcf of natural gas, but their exploitation depends on the construction of a multi-billion dollar natural gas pipeline from the Arctic.

The major portion of the newly identified prospect lies below shallow waters of Cook Inlet; however, the initial wells can be drilled from onshore locations. The companies said the first exploratory well is slated for year-end 2002.

Current natural gas production in the Cook Inlet Basin is 0.5 to 0.6 Bcf/d, with one third going to LNG exports, one quarter to local ammonia/urea production and the balance to regional gas utilities and electric power generation. The companies added that success at the Escopeta-BBI prospective area opens the possibility for expanded Alaska LNG exports for local industry, as well as long term indigenous natural gas supply for Anchorage, AK.

Escopeta Oil and Gas has been conducting business in Alaska since 1993 and is currently the third largest leaseholder in the Cook Inlet Basin with over 120,000 acres under lease.

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