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Home My WebLink About2023 Thomson Oil Pool Hilcorp Alaska, LLC Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone: 907/777-8486 Joleen.oshiro@hilcorp.com April 1st, 2024 Brett Huber Sr, Chair Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 RE: Point Thomson Unit 2022 Annual Reservoir Surveillance Report Dear Commissioner Huber, Hilcorp Alaska, LLC. hereby submits an Annual Reservoir Surveillance Report for the Thomson Oil Pool within the Point Thomson Unit in accordance with Rule 8 of Area Injection Order No. 38 dated August 25, 2015 and Rule 5 of the Conservation Order No. 719 dated November 9, 2015. A technical review will be scheduled with representatives from AOGCC to review the annual reservoir surveillance report in accordance with Rule 5(b) of the Conservation Order No. 719. If you have any questions or require additional information, please contact Gavin Dittman at (907) 564- 5246. Sincerely, Gavin Dittman For and On Behalf of Hilcorp Alaska, LLC. Hilcorp Alaska PTU Annual Reservoir Surveillance Report 2023 Page 1 Annual Reservoir Surveillance Report – 2023 Thomson Oil Pool Point Thomson Unit Introduction This annual reservoir surveillance report is submitted to the Alaska Oil and Gas Conservation Commission by Hilcorp Alaska, LLC., Point Thomson Unit (PTU) operator, in accordance with Rule 8 of Area Injection Order No. 38 dated August 25, 2015, and Rule 5 of Conservation Order No. 719 dated November 9, 2015, for the Thomson Oil Pool within the PTU. The report covers calendar year 2023 for the Initial Production System (IPS) facility operations. Enhanced Recovery Project and Reservoir Management – Rule 8(a) & 5(a)(v),(vi) The Point Thomson IPS project produces natural gas and condensate from the Thomson Oil Pool to recover liquid condensate for sale and reinject the residue gas as the enhanced recovery mechanism (gas-cycling). Condensate is transported through the Point Thomson Export Pipeline (PTEP) for delivery to the Trans-Alaska Pipeline System common carrier pipelines. The reservoir management strategy for the Thomson Sand is to reinject cycled gas to help maintain reservoir pressure for condensate recovery and conserve the gas for future development. The IPS also provides information about gas condensate production and reservoir connectivity to assist in subsequent development plans. Reservoir Voidage Balance – Rule 8(b) & 5(a)(i) Monthly production and injection volumes and the reservoir voidage balance for the Thomson reservoir by month and cumulative through December 2023 are summarized in Table 1. Voidage replacement ratio in 2023 was 0.86. The Annual Report of Injection Project, Form 10-413, is included as Table 2. Reservoir Pressure Surveys – Rule 8(c) & 5(a)(ii) Reservoir pressure monitoring is performed in accordance with Conservation Order No. 719, Rule 3. Static bottom-hole pressure measurements were collected from permanent downhole gauges and corrected to Thomson reservoir pressure datum of -12,700’ TVDSS (true vertical depth subsea). Bottom-hole pressures were taken during well drilling prior to initial production or injection, and subsequently during extended well shut in periods. In PTU-15 and PTU-16 initial reservoir pressure was recorded using wireline MDT during initial drilling in 2010. Correcting to datum, the reservoir pressure measured in both wells was ~10,100 Hilcorp Alaska PTU Annual Reservoir Surveillance Report 2023 Page 2 psi. PTU-17 initial reservoir pressure data collected while drilling on December 29, 2015 was 10,107 psi at datum. A summary of static bottom-hole pressures is shown in Table 3, Form 10-412 Reservoir Pressure Report. Table 4 is the Form 10-428 Annual Reservoir Properties Report required by 20 AAC 25.270(e). Average properties are quoted, noting that ranges for porosity, permeability and water saturation are relatively wide. Thomson Oil Pool can be characterized as a retrograde condensate reservoir which helps to explain the reported properties. A reservoir pressure map is shown in Figure 1. Analysis of pressure surveys indicates limited reservoir pressure decline. The variation from initial recorded pressure and between wells is within the expected range given temperature corrections and fluid gradient variations. Production & Injection Log Surveys – Rule 8(d) & 5(a)(iii) No production or injection log surveys were run during the reporting period. Fracture Propagation into Adjacent Confining Intervals – Rule 8(e) Downhole and surface wellhead gas injection pressures and rates for PTU-15 and PTU-16 are shown in Figures 2 and 3, respectively. In accordance with Area Injection Order No. 38, Rule 4, gas injection pressures were maintained below 11,500 psi at the reservoir sand face. Mechanical Integrity Test (MIT) Results – Rule 8(f) Injection wells PTU-15 and PTU-16 performed and passed casing/tubing mechanical integrity tests, witnessed by the AOGCC, on September 18, 2020. The MIT’s were scheduled as required once every four years after injection is commenced and stabilized by Rule 6 of Area Injection Order No. 38. The previous PTU-15 and PTU-16 MIT’s were conducted in October of 2016. MIT passing criteria requires the inner annulus pressure to hold a minimum of 1,500 psi or 0.25 psi/ft multiplied by the packer TVD for 30 minutes with less than 10% decline and a stabilizing pressure trend. Table 5 summarizes PTU-15 and PTU-16 2020 MIT data and results. The next MIT pressure tests on PTU-15 and PTU-16 will be due in 2024. Hilcorp Alaska PTU Annual Reservoir Surveillance Report 2023 Page 3 Inner and Outer Annulus Monitoring – Rule 8(g) Casing annulus pressures of production and injection wells completed in the Thomson reservoir are monitored in accordance with Area Injection Order No. 38, Rule 5, and Conservation Order No. 719, Rule 7. Digital continuous pressure monitoring is installed on each annulus of PTU-15, PTU-16 and PTU- 17. Control room alarms are in place to notify operations of high pressure for initiation of manual bleed down intervention. An annotated summary of annulus pressure monitoring is shown in Figures 4 to 6. Special Monitoring – Rule 8(h) & 5(a)(iii) No special monitoring was undertaken during the reporting period. Pool Production Allocation – Rule 5(a)(iv) Point Thomson production is wholly allocated back to the sole producing PTU-17 well from the Thomson reservoir. Condensate liquids are metered at the custody transfer meter on Point Thomson Central Pad. Total produced gas from PTU-17 is calculated as the sum of injected gas into PTU-15 and PTU-16, lease fuel, pilot/purge and flare gas. Reservoir Surveillance Plans – Rule 8(i) Reservoir surveillance plans for next year include the collection of surface wellhead and downhole pressure and temperature data, which will be used to monitor reservoir pressure, well productivity and injectivity. Casing annulus pressures will continue to be recorded to monitor integrity of the wells. Pressure and temperature data will be complemented by well production and injection rates, together with metered condensate, gas and water volumes. The information will be used to calculate gas-condensate ratio, water cut and voidage replacement for the field. No production or injection log surveys are planned for 2024. Development Plans – Rule 8(j) & 5(a) As noted above, IPS operations will provide data and information regarding production, well and reservoir performance, and IPS facility performance to assist in evaluation of development plans. Hilcorp Alaska is currently evaluating the economic feasibility of development at the Point Thomson Unit. Hilcorp Alaska PTU Annual Reservoir Surveillance Report 2023 Page 4 ATTACHMENTS Table 1: Monthly Production, Injection and Voidage Balance Summary ..................................................... 5 Table 2: Annual Report of Injection Project (Form 10-413) .......................................................................... 6 Table 3: Reservoir Pressure Report (Form 10-412) ...................................................................................... 7 Table 4: Annual Reservoir Properties Report (Form 10-428) ....................................................................... 8 Table 5: PTU-15 and PTU-16 Mechanical Integrity Test Report (Form 10-426) ........................................... 9 Figure 1: Thomson Reservoir Pressure Map ............................................................................................... 10 Figure 2: PTU-15 Injection Pressure and Rate ............................................................................................ 11 Figure 3: PTU-16 Injection Pressure and Rate ............................................................................................ 12 Figure 4: PTU-15 Annulus Monitoring ........................................................................................................ 13 Figure 5: PTU-16 Annulus Monitoring ........................................................................................................ 14 Figure 6: PTU-17 Annulus Monitoring ........................................................................................................ 15 Hilcorp Alaska PTU Annual Reservoir Surveillance Report 2023 Page 5 Table 1: Monthly Production, Injection and Voidage Balance Summary Note: Bc = 0.999 RB / STB Bg = 0.480 RB / MSCF Bw = 1.000 RB / STB Bc = condensate formation volume factor Bg = dry gas formation volume factor Bw = water formation volume factor MSCF = thousand standard cubic feet RB = reservoir barrels STB = stock tank barrels VRR = voidage replacement ratio Table 1: Monthly Production, Injection and Voidage Balance Summary Water VRR (STB) (RB/RB) Jan-23 225,931 2,957 4,101,106 3,975,283 0.87 Feb-23 227,817 3,021 4,245,109 4,118,053 0.87 Mar-23 191,164 2,360 3,340,811 3,212,929 0.86 Apr-23 188,355 2,411 3,381,050 3,243,328 0.86 May-23 157,517 2,033 2,854,365 2,741,930 0.86 Jun-23 93,426 1,177 1,669,331 1,588,348 0.85 Jul-23 82,429 1,047 1,387,759 1,307,157 0.84 Aug-23 73,268 913 1,228,424 1,153,672 0.83 Sep-23 89,595 1,080 1,520,230 1,440,747 0.84 Oct-23 94,191 1,010 1,664,093 1,577,471 0.85 Nov-23 103,380 1,048 1,822,106 1,737,801 0.85 Dec-23 116,386 1,158 2,025,163 1,936,980 0.85 TOTAL 1,643,459 20,215 29,239,547 28,033,699 0.86 Month Condensate (STB)Dry Gas Production (MSCF) Dry Gas Injection (MSCF) Hilcorp Alaska PTU Annual Reservoir Surveillance Report 2023 Page 6 Table 2: Annual Report of Injection Project (Form 10-413) 2023 Address Field and Pool +0 -0 + 0 - 0 +0 -0 +0 -0 + 0 - 0 (A) (B) (C) (A)+(B)+(C) (D) (E) (F) (D)+(E)+(F) (5.)-(6.) psia -12700 Subsea Signature: Date: Printed Name: Title: 2. GAS INJECTION DATA As of Dec. 31, active water inj. Wells 0 Number of Inj./Conservation Order Authorizing Project Annual volume water inj. Name of Injection Project AIO #38 and CO #719Point Thomson Initial Production System (IPS) As of Jan. 1, Total oil wells STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION ANNUAL REPORT OF INJECTION PROJECT 20 AAC 25.432 (2) Hilcorp Alaska, LLC Point Thomson Unit 3800 Centerpoint Dr Suite 1400, Anchorage AK 99503 Point Thomson Field, Point Thomson Oil Pool Type of Injection Project Annual volume oil and/or condensate produced 1,643,459 Annual volume gas produced Cumulative gas to dateGas wells added or subtracted Oil wells added or subtracted As of Jan. 1, Total gas wells 0 NET INJECTED (+) OR PRODUCED (-) VOLUMES -2244625 0 29,239,547 4. PRODUCTION DATA 5. INJECTION VOLUMES (Resevoir Barrels) Annual Volume Unit or Lease Name 3. LPG INJECTION DATA As of Dec. 31, active gas inj. Wells 2 Annual volume gas inj. 28,033,699 295,442,778 Cumulative water inj. to date Enhanced Recovery (Gas Cycling) 1. WATER INJECTION DATA Gas inj. wells added or subtracted Water inj. wells added or subtracted 0 16,870,200 Annual volume LPG inj. Cumulative LPG inj. to dateLPG inj. wells added or subtracted As of Dec. 31, Total gas wells Cumulative since project start 2 0 As of Jan. 1, active water inj. wells As of Jan. 1, active gas inj. wells 1 306,260,403 Cumulative oil and/or condensate to date As of Dec. 31, Total oil wells 1 As of Dec. 31, Active LPG inj. wells FOR THE YEAR: Water (surface bbls.=reservoir bbls.) LPG (Surface bbls.=reservoir bbls.) Indicate type of LPG, Butane, Propane or other. Cumulative gas inj. to date 0 115672475 0 0 Name of Operator As of Jan. 1, active LPG inj. wells 6. PRODUCED VOLUMES (Resevoir Barrels) TOTAL FLUIDS INJECTED (reservoir bbls.) 0 0 0 115672475 0 13544237 13544237 120110992 214461 1641816Oil (Stock tank Bbls. X formation volume factor) 14126831 TOTAL PRODUCED VOLUMES (reservoir barrels)137178783 Water (surface bbls.=reservoir bbls.)20215 10032 Year end reservoir pressure Datum feet -21506308 I hereby certify that the foregoing is true and correct to the best of my knowledge. 0 16853330 Gavin Dittman 3/28/2024 Reservoir Engineer 15788862 (Gas Z (Compressibilty factor) X Tr (reservoir temperature, oF absolute) X 14.65Standard CF X volume factor v. where v= 5.615 cf/bbl. X Pr. (reservoir pressure, psia) X 520 (absolute equivalent at 60oF)) Free Gas (Total gas produced in standard cubic feet less solution gas produced (Stock tank bbls. Oil produced X solution gas oil ratio) X volume factor v calculated for produced gas ) Hilcorp Alaska PTU Annual Reservoir Surveillance Report 2023 Page 7 Table 3: Reservoir Pressure Report (Form 10-412) 6. Oil Gravity: 36 API 8. Well Name and Number: 9. API Number 50XXXXXXXXXX XX 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) PTU-17 50089200330000 O 668150 Thomson Sand 12619-12823 3/12/2023 26 SBHP 10571 9704 12700 0.16 10034 PTU-15 50089200300000 GI 668150 Thomson Sand 12622-12804 11/13/2023 216 SBHP 10420 9711 12700 0.14 10027 PTU-16 50089200310000 GI 668150 Thomson Sand 12763-12908 11/2/2023 864 SBHP 10022 9665 12700 0.14 10037 Printed Name Gavin Dittman Date March 28, 2024 23. All tests reported herein were made in accordance with the applicable rules, regulations and instructions of the Alaska Oil and Gas Conservation Commission. I hereby certify that the foregoing is true and correct to the best of my knowledge. Signature Title Reservoir Engineer 3. Unit or Lease Name: 4. Field and Pool: 5. Datum Reference: 7. Gas Gravity: Point Thomson Unit Point Thomson Field, Thomson Oil Pool -12,700' TVDSS 0.7 Hilcorp Alaska, LLC. 3800 Centerpoint Dr., Anchorage, AK, 99524, Suite 1400 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator: 2. Address: Hilcorp Alaska PTU Annual Reservoir Surveillance Report 2023 Page 8 Table 4: Annual Reservoir Properties Report (Form 10-428) 3. Field and Pool Code: 4. Pool Name 5. Reference Datum (ft TVDSS) 6. Temperature (°F) 7. Porosity (%) 8. Permeability (md) 9. Swi (%) 10. Oil Viscosity @ Original Pressure (cp) 11. Oil Viscosity @ Saturation Pressure (cp) 12. Original Pressure (psi) 13. Bubble Point or Dew Point Pressure (psi) 14. Current Reservoir Pressure (psi) 15. Oil Gravity (°API) 16. Gas Specific Gravity (Air = 1.0) 17. Gross Pay (ft) 18. Net Pay (ft) 19. Original Formation Volume Factor (RB/STB) 20. Bubble Point Formation Volume Factor (RB/STB) 21. Gas Compressibility Factor (Z) 22. Original GOR (SCF/STB) 23. Current GOR (SCF/STB) Point Thomson 668150 Thomson Oil Pool -12,700 230 15 100 42 1.81 1.81 10100 10100 10032 36 0.7 235 235 0.0029 0 1.5 20,000 17915 Reservoir Engineer 3/28/2024 Hilcorp Alaska, LLC 3800 Centerpoint Dr Suite 1400, Anchorage AK 99503 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION ANNUAL RESERVOIR PROPERTIES REPORT 1. Operator: 2. Address: Printed Name Gavin Dittman Date I hereby certify that the foregoing is true and correct to the best of my knowledge. Signature Title Hilcorp Alaska PTU Annual Reservoir Surveillance Report 2023 Page 9 Table 5: 2020 PTU-15 and PTU-16 Mechanical Integrity Test Report (Form 10-426) Hilcorp Alaska PTU Annual Reservoir Surveillance Report 2023 Page 10 Figure 1: Thomson Reservoir Pressure Map 10034 10027 10037 10034 Hilcorp Alaska PTU Annual Reservoir Surveillance Report 2023 Page 11 Figure 2: PTU-15 Injection Pressure and Rate Hilcorp Alaska PTU Annual Reservoir Surveillance Report 2023 Page 12 Figure 3: PTU-16 Injection Pressure and Rate Hilcorp Alaska PTU Annual Reservoir Surveillance Report 2023 Page 13 Figure 4: PTU-15 Annulus Monitoring Hilcorp Alaska PTU Annual Reservoir Surveillance Report 2023 Page 14 Figure 5: PTU-16 Annulus Monitoring Hilcorp Alaska PTU Annual Reservoir Surveillance Report 2023 Page 15 Figure 6: PTU-17 Annulus Monitoring