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 who left many medium-sized prospects untapped. Pioneer demonstrated the ability to effectively drill in extreme weather conditions, leading to the discovery of the Oooguruk oil field in 2003.
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.
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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. |
With first oil production from Oooguruk during the second quarter of 2008, the Company became the first independent to operate a producing field on the North Slope. Production is expected to peak during 2011 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 brought Oooguruk online in less than five years – an unprecedented cycle time for a new field of this type on the North Slope.
In the Cook Inlet in southern Alaska, Pioneer is pursuing development of 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 drilled a horizontal appraisal well during 2007 from a drilling pad onshore to further assess the reservoir. The Company has now begun permitting activities and an engineering study to determine what facilities will be required. The next well is expected to be drilled in 2010.
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