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Home My WebLink About2022 Milne Point Unit Milne Point Unit Waterflood and Reservoir Surveillance Report for Kuparuk River Oil Pool Schrader Bluff Oil Pool Sag River Oil Pool January through December, 2022 Issued: April 1st, 2023 Outline 1. Introduction 2. Kuparuk River Oil Pool a. Project Summary b. Reservoir Voidage Balance Table c. Pressure Data 3. Schrader Bluff Oil Pool a. Project Summary b. Reservoir Voidage Balance Table c. Pressure Data d. Injection Surveys 4. Sag River Oil Pool a. Project Summary b. Reservoir Voidage Balance Table c. Pressure Data 5. Milne Point Pool Allocation Factors 6. Milne Point 2022 Development Review and 2023 Development Plan ANNUAL RESERVOIR SURVEILLANCE REPORTS MILNE POINT UNIT KUPARUK RIVER OIL POOL SCHRADER BLUFF OIL POOL SAG RIVER OIL POOL JANUARY - DECEMBER 2022 Introduction As required by Conservation Order 205 for the Kuparuk River Oil Pool, approved October 4, 1984, Conservation Order 477, approved August 23, 2002 for the Schrader Bluff Oil Pool, Conservation Order 423 for the Sag River Oil Pool, approved May 6, 1998, and Conservation Order 550.007 for all Milne Point Pools, approved January 6, 2009, and Conservation Order 550.006 for all Milne Point Pools, amended February 14, 2015, this report provides a consolidated summary of surveillance activities within the Milne Point Unit. The report includes surveillance data associated with waterflood projects and development activities. The time period covered is January through December 2022. Kuparuk River Oil Pool Waterflood Project Summary Cumulative water injection since waterflood startup through the end of 2022 is 681 MMSTB and cumulative gas injection is 123.4 BSCF. This data shows that the voidage replacement ratio averaged 0.87 RB/RB in 2022 compared to 0.86 RB/RB in 2021. The Kuparuk River Oil Pool is split up in Hydraulic Units which represent regions of the reservoir that are believed to be hydraulically isolated due to faulting and/or lithologic controls. In 2021, 6 static pressure readings were obtained in the Kuparuk River reservoir. Average pressure from those readings was 2,741 psi at a datum depth of 7000’ SSTVD Schrader Bluff Oil Pool Waterflood Project Summary The Schrader Bluff Oil Pool cumulative voidage replacement for the calendar year 2022 was 0.73 (target 1.0) with a cumulative voidage replacement for the life of the project is 0.85. Initial development of the Schrader Bluff pool began in 1991 in the Tract 14 area (G/H/I/ and J pads) and consisted of vertical producers and injectors being completed in most all of the Schrader Bluff sands (Na-Nf , Oa, and Oba). Injection into the pool begain approximately one year after the first producers were drilled. The vertical injectors were typically installed with selective completions allowing for regulation of injection into different reservoir sands. Starting in th late 1990’s development continued in the Tract 14 area with both infill drilling and delineation wells as well as wells being drilled from both existing B and E pads. The development strategy shifted toward drilling multli lateral horizontal producers that were supported by vertical multi sand injectors. In 2002 a new pad was installed, S Pad, with similar development strategy but split between the Nb and Oa/Oba sands with dedicated Nb sand horiztonal producers and Oa/Oba sand dual lateral producers. These producers were supported by vertical multizone regulated injectors. Limited development occurred upon the completion of the S Pad project until 2016 when delineation wells were drilled from L Pad. The development strategy again shifted to dedicated single sand horizontal producers and injectors. In 2019 another pad was built, M Pad, where further delineation of the Schrader Bluff began. In 2020 and 2021 efforts began do “redevelop” the existing Tract 14 and S Pad areas which involved P&A’ing the existing well stock in an individual sand and redrilling the area with horizontal wells. New developments in the Schrader continue to utilize source water primarily from the shallower prince creek formation. All new developments since Hilcorp’s purchase of the asset in 2014 have utilized clean source water for injection. Utilizing produced water for injection at Milne Point has shown to be detrimental to injectivity due to solids and produced crude carry over accumulating in the injection wells. All future developments in the Schrader Bluff will plan to use clean source water. Hilcorp continued the Schrader Bluff Nb sand polymer injection pilots at J and L pads that were started in 2018. Results continue to be very encouraging with observed decreased water cuts and delayed water breakthrough. Polymer injection facilities were installed and injection initiated in the Schrader Oa sand developments at F and Moose Pad in May and July of 2020, respectively. Polymer injection facilities were then installed at both I and E pads targeting the Schrader Bluff Nb and Oa reservoirs in the fall of 2020. Polymer injection facilities were then installed at both I and E pads targeting the Schrader Bluff Nb and Oa reservoirs in the fall of 2020. Polymer injection facilities were then installed at S pad targeting the Schrader Bluff Nb reservoir in the spring of 2022.Polymer injection facilities were then installed at B pad targeting the Schrader Bluff Nb and Oa reservoirs in the beginning of 2023. Current total polymer injection rate into the Schrader Bluff is approximately 42,000 bwpd. Average pressure throughout the field is 1735 psi at reference depth of 4000’ SSTVD based on 2022 surveys taken. Original pressure at reference depth was 1730 psi. Milne Point Unit Schrader Bluff Pool Production Rate Averages:Injection Rate Averages: Oil Water Gas Reservoir Water Gas Voidage Voidage Voidage Month Prod Rate Prod Rate Prod Rate Voidage Inj Rate Inj Rate Replacement Replacement Balance 12/31/2012 (stb/day)(stb/day)(mscf/day)(rbbl/day)(stb/day)(mscf/day)(rbbl/day)Ratio (rbbl/day) 1/31/2022 26,676 30,022 11,490 68,600 55,403 0 55,957 0.82 -12,642 2/28/2022 27,220 33,295 11,922 72,989 56,894 0 57,462 0.79 -15,527 3/31/2022 26,527 30,747 11,509 69,247 55,118 0 55,669 0.80 -13,578 4/30/2022 26,077 28,438 9,074 62,827 49,788 0 50,286 0.80 -12,541 5/31/2022 27,567 35,828 9,822 72,592 45,539 0 45,994 0.63 -26,598 6/30/2022 27,797 37,437 9,123 73,322 45,777 0 46,234 0.63 -27,088 7/31/2022 28,167 31,329 8,948 67,170 41,435 0 41,849 0.62 -25,321 8/31/2022 27,728 30,398 8,979 65,939 44,253 0 44,696 0.68 -21,243 9/30/2022 27,784 34,206 9,019 69,889 37,965 0 38,344 0.55 -31,545 10/31/2022 26,517 31,506 9,726 67,267 46,639 0 47,106 0.70 -20,161 11/30/2022 30,251 30,216 11,269 71,223 49,089 0 49,580 0.70 -21,642 12/31/2022 30,658 30,952 8,461 67,970 47,964 0 48,444 0.71 -19,526 Cumulative Production:Cumulative Injection: Oil Water Gas Reservoir Water Gas Voidage Voidage Voidage Month Cumulative Cumulative Cumulative Voidage Cumulative Cumulative Replacement Replacement Balance 12/31/2012 (stb)(stb)(mscf)(rbbl)stb mscf (rbbl)Ratio (rbbl) 1/31/2022 826,957 930,692 356,190 2,126,592 1,717,500 0 1,734,675 0.82 -391,917 2/28/2022 762,161 932,253 333,817 2,043,691 1,593,019 0 1,608,949 0.79 -434,742 3/31/2022 822,352 953,157 356,793 2,146,644 1,708,647 0 1,725,733 0.80 -420,911 4/30/2022 782,305 853,142 272,207 1,884,796 1,493,637 0 1,508,573 0.80 -376,223 5/31/2022 854,582 1,110,675 304,476 2,250,361 1,411,711 0 1,425,828 0.63 -824,533 6/30/2022 833,902 1,123,098 273,698 2,199,659 1,373,301 0 1,387,034 0.63 -812,625 7/31/2022 873,190 971,201 277,375 2,082,285 1,284,476 0 1,297,321 0.62 -784,964 8/31/2022 859,579 942,333 278,362 2,044,114 1,371,855 0 1,385,574 0.68 -658,540 9/30/2022 833,526 1,026,184 270,561 2,096,670 1,138,938 0 1,150,327 0.55 -946,343 10/31/2022 822,023 976,672 301,505 2,085,266 1,445,824 0 1,460,282 0.70 -624,984 11/30/2022 907,531 906,490 338,077 2,136,680 1,472,678 0 1,487,405 0.70 -649,275 12/31/2022 950,402 959,509 262,306 2,107,080 1,486,896 0 1,501,765 0.71 -605,315 Average: 2022 27,748 32,031 9,945 69,086 47,989 0 48,469 0.70 -20,618 Cumulative:stb stb mscf rb stb mscf rb rb 31-Dec-22 10,128,511 11,685,405 3,625,367 24,410,549 17,498,482 0 17,848,452 0.73 -6,562,098 RESERVOIR VOIDAGE BALANCE January - December 2022 6. Oil Gravity: 13-22 8. Well Name and Number: 9. API Number 50XXXXXXXXXXXX NO DASHES 10. Type See Instructions 11. AOGCC Pool Code 12. Zone 13. Perforated Intervals Top - Bottom TVDSS 14. Final Test Date 15. Shut-In Time, Hours 16. Press. Surv. Type (see instructions for codes) 17. B.H. Temp. 18. Depth Tool TVDSS 19. Final Observed Pressure at Tool Depth 20. Datum TVDSS (input) 21. Pressure Gradient, psi/ft. 22. Pressure at Datum (cal) E-13B 50029225360200 WI 525140 Nb 4252-4262 2/9/2022 63847 SBHP 81 3979 1507 4000.00 0.41 1516 E-13B 50029225360200 WI 525140 Oa/Ob 4384-4407 2/6/2022 63847 SBHP 89 3927 2050 4000.00 0.43 2082 E-020A 50029225610100 O 525140 Nb/Oa 4326-4414 4/8/2022 552 SBHP N/A 4167 1636 4000.00 0.43 1564 B-29 50029235640000 WI 525140 Nb 4388-4402 9/7/2022 2736 SBHP 83 4401 2173 4000.00 0.41 2009 J-07 50029221980000 O 525140 Nb/Oa/Ob 3989-4218 1/11/2022 169756 SBHP 72 3749 1647 4000.00 0.41 1750 L-47 500292355000 O 525140 Oa 4065-4113 7/23/2022 888 SBHP 74 3297 1203 4000.00 0.41 1491 Average 1735 3. Unit or Lease Name:4. Field and Pool:5. Datum Reference:7. Gas Gravity: Milne Point Milne Point - Schrader Bluff 4000 0.56 ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator:2. Address: Hilcorp Alaska LLC 3800 Center Point Dr, Anchorage , AK 99503 Schrader Bluff PLT Logs and Analysis No PLT logs were run on multi-sand injectors in 2022. Total active injector count in the Schrader Bluff is 56 with a total of 9 active multi-sand injectors at the end of 2022. These wells are B-02, E-12, G-01, I-07A, I-16, I-18, J-05, S-02, and S-15. The remaining active injectors are either dual string vertical injectors targeting single intervals, single string horizontal injectors targeting individual sands, or selective completions that are only injecting into a single zone. Sag River Oil Pool Waterflood Project Summary A Participating Area for the Sag was approved in 2005. During 2022, Sag Oil Pool had the field total to 4 production wells with no active injection wells. There was no production from the reservoir in most of 1999 and the entire year of 2000 because it was not economical to repair the failed ESPs. The Sag River Pool oil production averaged 502 STBD and water production averaged 560 STBD in 2022. Cumulative production through the end of 2022 was 4.2 MMSTB of oil, 5.2 BSCF of gas, and 4.6 MMSTB of water. During 2021 one pressure surveys in the B-30 well was obtained indicating a reservoir pressure of 1560 psi at a datum depth of 8750’ SSTVD. As this is a single well this not indicative of the average reservoir pressure of the pool. MPU Pool Allocation Factors Total Milne Point production increased a total of 0.674 MMBO from 2021 to 2022 primarily due to development drilling in the Kuparuk and Schrader Bluff pools. An increase water production can be attributed to making sure shakeouts and test separator readings were calibrated. Specifically, Kuparuk wells after correction , produced a lot more water than previously thought. Increase in total gas can be attributed to Schrader Bluff development drilling into previously developed lower pressure ares which contain higher gas saturations. Production Pool Oil Water Gas Oil Water Gas Oil Water Gas stb stb mscf stb stb mscf stb stb mscf Schrader Bluff 9081721 9630436 3411118 10128511 11685405 3625367 1046790 2054969 214249 Kuparuk 3733160 15051811 3601296 3329088 16526411 4420149 -404072 1474600 818853 Sag River 151746 250903 295627 183271 205098 328690 31525 -45805 33063 Total 12966627 24933150 7308041 13640870 28416914 8374206 674243 3483764 1066165 Allocation Pool Oil Water Gas Oil Water Gas Oil Water Gas frac frac frac frac frac frac frac frac frac Schrader Bluff 0.70 0.39 0.47 0.74 0.41 0.43 0.04 0.02 -0.03 Kuparuk 0.29 0.60 0.49 0.24 0.58 0.53 -0.04 -0.02 0.04 Sag River 0.01 0.01 0.04 0.01 0.01 0.04 0.00 0.00 0.00 20222021 2021 2022 2022- 2021 Delta 2022 - 2021 Delta MPU Well Tests and Oil Allocation Factors 2022 Date Kuparuk Schrader Sag Total Kuparuk Schrader Sag Total Kuparuk Schrader Sag Total 1 Jan-22 192 116 10 318 56 62 5 123 3.4 1.9 2.0 2.6 0.95 2 Feb-22 198 121 12 331 62 62 5 129 3.2 2.0 2.4 2.6 0.95 3 Mar-22 198 118 10 326 65 62 5 132 3.0 1.9 2.0 2.5 0.93 4 Apr-22 164 146 19 329 61 60 5 126 2.7 2.4 3.8 2.6 0.91 5 May-22 167 102 18 287 67 64 5 136 2.5 1.6 3.6 2.1 1.01 6 Jun-22 217 116 23 356 67 58 5 130 3.2 2.0 4.6 2.7 0.99 7 Jul-22 171 107 22 300 66 58 4 128 2.6 1.8 5.5 2.3 0.95 8 Aug-22 175 88 14 277 68 59 4 131 2.6 1.5 3.5 2.1 0.93 9 Sep-22 139 91 11 241 63 63 4 130 2.2 1.4 2.8 1.9 0.94 10 Oct-22 156 99 10 265 63 63 4 130 2.5 1.6 2.5 2.0 0.90 11 Nov-22 127 113 22 262 63 65 4 132 2.0 1.7 5.5 2.0 0.92 12 Dec-22 161 118 14 293 64 66 4 134 2.5 1.8 3.5 2.2 0.91 Average MPU Oil Allocatio Well Test Count Active Well Count Average Well Test per well Annual Plans of Development Review (40th (2022) and 41th (2022)) The following annual report describes the operations conducted under the 40th POD as required by 11 AAC 83.343(d). A. 40th POD Production Summary During calendar year 2022, the MPU produced approximately 6,326 million cubic feet (“MMcf”) of gas and 10,191 thousand barrels (“Mbbl”) of oil.1 From January 1, 2022 through September 30, 2022, the average daily production rate was 37,466 barrels of oil per day (“BOPD”). B. 40th POD Drilling Program Hilcorp Alaska anticipated drilling up to 17 new wells under the 40th POD (ten I Pad Schrader Bluff wells and 7 Schrader Bluff wells between M Pad and B Pad). During the 40th POD period to date, Hilcorp Alaska has drilled eight new wells with an additional four wells anticipated to be completed by the end of the POD period as detailed below: • I Pad – Anticipated drilling ten wells (four injectors, six producers). Successfully completed two wells (one injector, one producer) detailed below. Remaining anticipated wells were deferred due to a shortened rig schedule as well as a shift in focus to M Pad development. o I-29 – horizontal producer – Schrader Bluff Oa Sand o I-30 – horizontal injector – Schrader Bluff Oa Sand • M Pad –Successfully completed three wells (two injectors, one producer). An additional four wells (two injectors, two producers) denoted by * are anticipated to be drilled by the end of the POD period. o M-27 – horizontal injector – Schrader Bluff Oa Sand o M-28 – horizontal producer – Schrader Bluff Oa Sand o M-29 – horizontal injector – Schrader Bluff Oa Sand o M-30* – horizontal producer – Schrader Bluff Oa Sand o M-31* – horizontal injector – Schrader Bluff Oa Sand o M-32* – horizontal producer – Schrader Bluff Oa Sand o M-33* – horizontal injector – Schrader Bluff Oa Sand 1 Milne Point Unit has not historically and is not currently equipped to sell natural gas liquids (“NGLs”). All of the oil produced/sold from the Milne Point field is conventional black oil. • B Pad – Successfully drilled three wells (two injectors, one producer) detailed below. o B-31 – horizontal injector – Schrader Bluff Oa Sand o B-35 – horizontal producer – Schrader Bluff Oa Sand o B-36 – horizontal injector – Schrader Bluff Oa Sand C. 40th POD Workover Program Hilcorp Alaska did not have any planned workover operations during the 40th POD period. Detailed below are those workover operations executed to date in order to maintain and enhance production. • ASR1 Workover Rig – Successfully completed 21 well workovers as detailed below: o F-62A – Convert to jet pump – Kuparuk A Sand o F-61 – ESP Swap – Kuparuk A Sand o J-10 – ESP Swap – Kuparuk A Sand o J-06 – ESP Swap – Kuparuk A Sand o B-30 – Uphole recomplete – Sag to Kuparuk C Sand o E-20 – ESP Swap – Schrader Bluff Oa Sand o E-04 – ESP Swap – Kuparuk C Sand o E-06 – ESP Swap – Kuparuk C Sand o F-25 – ESP Swap – Kuparuk A Sand o F-78A – ESP Swap – Kuparuk A Sand o F -107 – Convert to jet pump – Schrader Bluff Oa Sand o E-35 – ESP Swap – Schrader Bluff Oa Sand o S-34 – Replace tubing – Schrader Bluff Oa Sand o J-07 – P&A – Schrader Bluff all Sands o I-17 – Convert to jet pump – Schrader Bluff Nb/Oa/Oba Sands o J-27 – Convert to jet pump – Schrader Bluff Nb Sand o I-15 – Convert to jet pump – Schrader Bluff N/Oa/Oba Sands o I-01 – Convert to jet pump – Schrader Bluff all Sands o L-47 – casing repair and convert to jet pump – Schrader Bluff Oa Sand o I-11 – convert to jet pump – Schrader Bluff Oa/Oba sands o M-06 – ESP swap – Prince Creek water source well • Doyon 14 Workover Rig – Successfully completed four workover operations as detailed below: o F-05 – ESP swap – Kuparuk A Sand o F-93 – ESP swap – Kuparuk A Sand o F-107 – ESP swap – Schrader Bluff Oa Sand o F-21 – ESP swap – Prince Creek water source well o B-28 – Tubing Swap – Schrader Bluff D. 40th POD Sidetrack Drilling Program Hilcorp Alaska anticipated performing coiled tubing drilling operations on six wells during the 40th POD period. Prior to executing any of the anticipated coiled tubing operations, the rig was relocated to the Prudhoe Bay Unit (Operated by Hilcorp North Slope, LLC). E. 40th POD Major Facility Projects Hilcorp Alaska completed the following facility projects outlined in the 40th POD: • B Pad polymer unit installation • M Pad upgraded polymer unit installation • S Pad multiphase meter replacement • E Pad production header replacement The following projects outlined in the 40th POD are anticipated to be initiated prior to the end of the POD period: • F Pad power fluid separation system installation • E Pad power fluid booster installation The following additional unanticipated projects were executed during the 40th POD period: • J Pad PWI header replacement • S Pad WI header replacement • E Pad polymer equipment installation • I Pad polymer equipment installation The following projects were anticipated during the 40th POD period but deferred: • J Pad water softening system installation • Produced water treatment equipment installation at CFP • B Pad gas injection compressor installation – studying options • L Pad 2nd polymer unit installation • Shutdown for A-Train process vessel inspections and upgrades – deferred until 2024 TAR • Diesel tank to slop oil tank conversion • M Pad water softening system installation • S Pad produced water treatment equipment installation • Solar Titan 130 power generator engineering/procurement – planned for 2024 III. 41st PLAN OF DEVELOPMENT AND OPERATIONS For the period of January 13, 2023 through January 12, 2024, Hilcorp Alaska anticipates completing the following drilling, workover and facility projects. A. Proposed Drilling Program Hilcorp Alaska anticipates drilling up to 16 new wells during the 41st POD period. Potential drilling candidates include: • Schrader Bluff Formation – 12 wells (seven producers, five injectors). • Kuparuk Formation – two wells (one producer, one injector) • Ugnu (Undefined) Formation – two wells (one producer, one injector) B. Proposed Sidetrack Drilling Program Hilcorp Alaska anticipates performing coiled tubing drilling operations on six wells during the 41st POD period. Potential candidates include: • C Pad o C-02 Well o C-13 Well • F Pad o F-18 Well • K Pad o K-17 Well • L Pad o L-13 Well o L-40 Well C. Proposed Wellwork and Workover Program During the 41st POD period, Hilcorp Alaska does not anticipate any planned workover operations. Workovers will be executed to maintain and enhance production as needed. D. Major Facility Projects Key facility projects Hilcorp Alaska anticipates undertaking during the 41st POD period may include: • Tract Junction heater installation • B-Pad production header replacement • F Pad production header replacement • I Pad production heater installation Additional facility maintenance and repair projects will be executed as needed. E. Long-Range Activities Hilcorp Alaska is evaluating the following potential long-term activities: • Future drilling opportunities both on undeveloped acreage in the northwest of the unit, particularly in the Net Profit Share Leases (“NPSL”), and previously developed acreage from I, H, and S Pads in the Schrader Bluff PA. • Evaluation of continued performance from Ugnu horizontal producing well S-203 to help determine future Ugnu development strategy. • Continue to evaluate infill drilling opportunities in the Kuparuk sands via conventional and coiled tubing drilling.