ATC Atlantic Coal

RNS No 1851p
ATLANTIC RICHFIELD CO
27th August 1998


Companies to Increase Production from New 'Tabasco' North Slope Oil Field

ANCHORAGE, Alaska, Aug. 27 /PRNewswire/ -- ARCO Alaska, Inc. 
BP Exploration (Alaska) Inc., UNOCAL, Chevron USA Inc. and Mobil Exploration and
Producing U.S. Inc. have applied for state permission to begin commercial
production from the Tabasco oil field, a shallow, viscous oil accumulation that
overlies the Kuparuk reservoir on Alaska's North Slope.

Test production from a single Tabasco well began May 13.  The well is producing
more than 2,500 barrels per day of 16.5 degree API gravity oil. Following
approval of commercial production by the state, plans call for drilling up to 20
production and injection wells over the next few years with production
increasing to more than 10,000 barrels of oil per day in 1999. 

The new North Slope oil field has estimated reserves of as much as 30 million
barrels of oil. 

"This field could be larger," said ARCO Alaska President Kevin Meyers. 
"A 3-D seismic survey indicates the Tabasco formation extends beyond the
area we are now developing.  We are planning a delineation drilling program to
determine the full extent of the reservoir."
 
ARCO Alaska, Inc. (55.2%), BP Exploration (39.2%), and UNOCAL (4.9%) are the
major owners of the Tabasco field.  The field will be developed and operated by
ARCO Alaska, Inc., which also operates the Kuparuk field. 

Tabasco was discovered in 1986 during development of the underlying Kuparuk
field.  Tabasco is the second viscous oil development in the Kuparuk Area,
following startup of the West Sak oil field in December 1997.  It is the third
Kuparuk satellite oil field to begin production in the last year.   Like the
Tarn field which began production in late July, Tabasco will be produced using
existing Kuparuk infrastructure. 

"Development of these viscous oil reservoirs is possible because of new,
low-cost drilling and completion technologies and because we're able to make
extensive use of existing Kuparuk drill sites and processing facilities," Meyers
said. 

BP Exploration President Richard Campbell said,  "Tabasco is one of a number of
satellite accumulations in and around existing fields which will help to grow
and sustain North Slope production into the foreseeable future."

SOURCE ARCO Alaska, Inc.
/CONTACT: Ronnie Chappell of ARCO Alaska, Inc., 907-263-4102/
/Web site: http://www.arco.com/
(ARC)



END

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