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Home My WebLink About2023 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, 2023 Issued: April 4th, 2024 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 2023 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 2023. Kuparuk River Oil Pool Waterflood Project Summary Cumulative water injection since waterflood startup through the end of 2023 is 751 MMSTB and cumulative gas injection is 129 BSCF. This data shows that the voidage replacement ratio averaged 0.94 RB/RB in 2023 compared to 0.87 RB/RB in 2022. 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 2023, 16 static pressure readings were obtained in the Kuparuk River reservoir. Average pressure from those readings was 2,842 psi at a datum depth of 7000’ SSTVD Milne Point Unit Kuparuk Pool Daily Production Rate Averages By Month:Daily Injection Rate Averages By Month: 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) 1/31/2023 8,608 42,356 11,710 61,082 44,649 9,492 53,454 0.88 -7,628 2/28/2023 8,613 45,820 11,607 64,515 42,204 10,670 51,981 0.81 -12,534 3/31/2023 8,243 44,654 12,226 63,514 38,185 10,988 48,175 0.76 -15,340 4/30/2023 8,154 46,529 10,733 64,056 43,856 9,673 52,804 0.82 -11,252 5/31/2023 6,669 46,213 8,194 60,168 43,420 8,877 51,679 0.86 -8,489 6/30/2023 6,531 35,469 9,533 50,283 42,108 13,861 54,619 1.09 4,336 7/31/2023 6,938 40,844 10,323 56,796 40,065 13,094 51,888 0.91 -4,907 8/31/2023 7,574 44,103 10,645 60,974 47,279 14,891 60,750 1.00 -224 9/30/2023 8,174 41,289 13,433 61,069 53,471 16,221 68,175 1.12 7,106 10/31/2023 8,057 47,592 13,194 67,153 52,805 14,457 65,987 0.98 -1,166 11/30/2023 8,039 47,645 11,500 65,739 56,508 12,817 68,340 1.04 2,602 12/31/2023 7,615 48,294 12,484 66,842 56,517 15,126 70,328 1.05 3,486 Cumulative Production By Month:Cumulative Injection By Month: 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) 1/31/2023 266,836 1,313,050 363,000 1,893,534 1,384,120 294,257 1,657,066 0.88 -236,469 2/28/2023 241,174 1,282,960 325,000 1,806,413 1,181,700 298,766 1,455,474 0.81 -350,939 3/31/2023 255,525 1,384,260 379,000 1,968,940 1,183,740 340,616 1,493,411 0.76 -475,530 4/30/2023 244,634 1,395,870 322,000 1,921,683 1,315,690 290,179 1,584,114 0.82 -337,569 5/31/2023 206,731 1,432,590 254,000 1,865,209 1,346,020 275,173 1,602,039 0.86 -263,170 6/30/2023 195,943 1,064,080 286,000 1,508,501 1,263,250 415,833 1,638,576 1.09 130,074 7/31/2023 215,085 1,266,160 320,000 1,760,663 1,242,020 405,929 1,608,539 0.91 -152,124 8/31/2023 234,785 1,367,180 330,000 1,890,203 1,465,650 461,614 1,883,247 1.00 -6,956 9/30/2023 245,209 1,238,660 403,000 1,832,072 1,604,130 486,637 2,045,249 1.12 213,177 10/31/2023 249,777 1,475,360 409,000 2,081,739 1,636,940 448,174 2,045,588 0.98 -36,151 11/30/2023 241,181 1,429,360 345,000 1,972,156 1,695,250 384,512 2,050,213 1.04 78,057 12/31/2023 236,051 1,497,100 387,000 2,072,106 1,752,020 468,907 2,180,163 1.05 108,056 Average: 2023 7,768 44,234 11,298 61,849 46,756 12,514 1,770,306 0.94 -110,795 Cumulative:stb stb mscf rb stb mscf rb rb 31-Dec-23 2,832,931 16,146,630 4,123,000 22,573,221 17,070,530 4,570,597 21,243,677 0.94 -1,329,544 RESERVOIR VOIDAGE BALANCE January - December 2023 Schrader Bluff Oil Pool Waterflood Project Summary The Schrader Bluff Oil Pool cumulative voidage replacement for the calendar year 2023 was 0.68 (target 1.0) with a cumulative voidage replacement for the life of the project is 0.89. Initial development of the Schrader Bluff pool began in 1991 in the Tract 14 area (G/H/I/ and J pads) and consisted of vertic al 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 2 019 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 56,400 bwpd. Average pressure throughout the field is 1477 psi at reference depth of 4000’ SSTVD based on 2023 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) 1/31/2023 30,073 28,710 10,355 68,762 49,004 0 49,494 0.72 -19,268 2/28/2023 29,645 26,549 11,821 68,490 44,788 0 45,236 0.66 -23,254 3/31/2023 31,488 31,073 11,258 73,657 48,658 0 49,145 0.67 -24,512 4/30/2023 30,551 37,106 10,200 77,384 47,964 0 48,444 0.63 -28,940 5/31/2023 30,998 40,513 12,129 84,140 49,065 0 49,555 0.59 -34,584 6/30/2023 33,345 31,588 14,600 80,782 50,673 0 51,180 0.63 -29,602 7/31/2023 32,424 30,511 12,903 76,358 52,078 0 52,599 0.69 -23,759 8/31/2023 34,277 34,440 12,452 81,104 55,112 0 55,663 0.69 -25,440 9/30/2023 32,993 33,025 13,867 80,828 57,088 0 57,659 0.71 -23,170 10/31/2023 32,353 31,950 12,774 77,557 58,201 0 58,783 0.76 -18,775 11/30/2023 34,262 31,754 13,100 79,375 56,311 0 56,874 0.72 -22,501 12/31/2023 32,817 31,247 13,290 78,008 55,031 0 55,581 0.71 -22,427 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) 1/31/2023 932,274 890,008 321,000 2,131,607 1,519,110 0 1,534,301 0.72 -597,306 2/28/2023 830,057 743,361 331,000 1,917,717 1,254,060 0 1,266,601 0.66 -651,117 3/31/2023 976,113 963,270 349,000 2,283,379 1,508,410 0 1,523,494 0.67 -759,885 4/30/2023 916,542 1,113,190 306,000 2,321,508 1,438,930 0 1,453,319 0.63 -868,189 5/31/2023 960,926 1,255,900 376,000 2,608,330 1,521,010 0 1,536,220 0.59 -1,072,110 6/30/2023 1,000,350 947,651 438,000 2,423,466 1,520,190 0 1,535,392 0.63 -888,074 7/31/2023 1,005,140 945,839 400,000 2,367,103 1,614,430 0 1,630,574 0.69 -736,529 8/31/2023 1,062,580 1,067,630 386,000 2,514,209 1,708,470 0 1,725,555 0.69 -788,654 9/30/2023 989,795 990,751 416,000 2,424,847 1,712,630 0 1,729,756 0.71 -695,091 10/31/2023 1,002,940 990,450 396,000 2,404,273 1,804,220 0 1,822,262 0.76 -582,011 11/30/2023 1,027,870 952,623 393,000 2,381,249 1,689,320 0 1,706,213 0.72 -675,036 12/31/2023 1,017,320 968,663 412,000 2,418,244 1,705,950 0 1,723,010 0.71 -695,234 Average: 2023 32,102 32,372 12,396 77,204 51,998 0 52,518 0.68 -24,686 Cumulative:stb stb mscf rb stb mscf rb rb 31-Dec-23 11,721,907 11,829,336 4,524,000 28,195,932 18,996,730 0 19,186,697 0.68 -9,009,235 RESERVOIR VOIDAGE BALANCE January - December 2023 Schrader Bluff PLT Logs and Analysis No PLT logs were run on multi-sand injectors in 2023. Total active injector count in the Schrader Bluff is 64 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 2023, 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 221 STBD and water production averaged 532 STBD in 2023. Cumulative production through the end of 2023 was 4.3 MMSTB of oil, 5.4 BSCF of gas, and 4.8 MMSTB of water. During 2023 one pressure surveys in the C-46 well was obtained indicating a reservoir pressure of 1165 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. Milne Point Unit Sag 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) 1/31/2023 264 280 516 1,048 0 0 0 0.00 -1,048 2/28/2023 115 194 357 674 0 0 0 0.00 -674 3/31/2023 133 593 290 1,022 0 0 0 0.00 -1,022 4/30/2023 169 789 300 1,259 0 0 0 0.00 -1,259 5/31/2023 218 1,229 355 1,804 0 0 0 0.00 -1,804 6/30/2023 287 850 667 1,811 0 0 0 0.00 -1,811 7/31/2023 176 390 355 917 0 0 0 0.00 -917 8/31/2023 192 414 484 1,095 0 0 0 0.00 -1,095 9/30/2023 181 489 533 1,217 0 0 0 0.00 -1,217 10/31/2023 324 539 806 1,674 0 0 0 0.00 -1,674 11/30/2023 307 351 833 1,499 0 0 0 0.00 -1,499 12/31/2023 287 262 645 1,187 0 0 0 0.00 -1,187 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) 1/31/2023 8,197 8,691 16,000 32,476 0 0 0 0.00 -32,476 2/28/2023 3,207 5,439 10,000 18,881 0 0 0 0.00 -18,881 3/31/2023 4,118 18,394 9,000 31,677 0 0 0 0.00 -31,677 4/30/2023 5,057 23,682 9,000 37,768 0 0 0 0.00 -37,768 5/31/2023 6,760 38,098 11,000 55,928 0 0 0 0.00 -55,928 6/30/2023 8,618 25,505 20,000 54,319 0 0 0 0.00 -54,319 7/31/2023 5,462 12,091 11,000 28,436 0 0 0 0.00 -28,436 8/31/2023 5,955 12,826 15,000 33,933 0 0 0 0.00 -33,933 9/30/2023 5,425 14,679 16,000 36,524 0 0 0 0.00 -36,524 10/31/2023 10,046 16,708 25,000 51,882 0 0 0 0.00 -51,882 11/30/2023 9,198 10,539 25,000 44,960 0 0 0 0.00 -44,960 12/31/2023 8,891 8,135 20,000 36,804 0 0 0 0.00 -36,804 Average: 2020 221 532 512 1,267 0 0 0 0.00 -1,267 Cumulative:stb stb mscf rb stb mscf rb rb 31-Dec-23 80,934 194,787 187,000 463,588 0 0 0 0.00 -463,588 RESERVOIR VOIDAGE BALANCE January - December 2023 MPU Pool Allocation Factors Total Milne Point production increased a total of 1.1 MMBO from 2022 to 2023 primarily due to development drilling in the Schrader Bluff pool. Water production decreased as the producing well set is optimized within surface facility constraints. Gas production increased commensurate with increased oil production. Production Pool Oil Water Gas Oil Water Gas Oil Water Gas stb stb mscf stb stb mscf stb stb mscf Schrader Bluff 10,128,511 11,685,405 3,625,367 11,753,609 11,833,074 4,565,918 1,625,098 147,669 940,551 Kuparuk 3,329,088 16,526,411 4,420,149 2,957,127 15,797,824 4,304,080 -371,961 -728,587 -116,069 Sag River 183,271 205,098 328,690 61,557 194,789 151,556 -121,714 -10,308 -177,134 Total 13,640,870 28,416,914 8,374,206 14,772,293 27,825,687 9,021,554 1,131,423 -591,227 647,348 Allocation Pool Oil Water Gas Oil Water Gas Oil Water Gas frac frac frac frac frac frac frac frac frac Schrader Bluff 0.74 0.41 0.43 0.80 0.43 0.51 0.05 0.01 0.07 Kuparuk 0.24 0.58 0.53 0.20 0.57 0.48 -0.04 -0.01 -0.05 Sag River 0.01 0.01 0.04 0.00 0.01 0.02 -0.01 0.00 -0.02 20232022 2022 2023 2023 - 2022 Delta 2023 - 2022 Delta MPU Well Tests and Oil Allocation Factors 2023 Date Kuparuk Schrader Sag Total Kuparuk Schrader Sag Total Kuparuk Schrader Sag Total 1 Jan-23 185 123 8 316 65 66 3 134 2.8 1.9 2.7 2.4 0.92 2 Feb-23 137 108 6 251 62 67 3 132 2.2 1.6 2.0 1.9 0.93 3 Mar-23 169 149 5 323 62 68 2 132 2.7 2.2 2.5 2.4 0.93 4 Apr-23 127 142 4 273 63 69 2 134 2.0 2.1 2.0 2.0 0.93 5 May-23 115 134 4 253 60 68 2 130 1.9 2.0 2.0 1.9 0.93 6 Jun-23 110 127 4 241 48 68 2 118 2.3 1.9 2.0 2.0 0.89 7 Jul-23 107 108 4 219 51 69 1 121 2.1 1.6 4.0 1.8 0.91 8 Aug-23 117 104 5 226 53 67 2 122 2.2 1.6 2.5 1.9 0.91 9 Sep-23 147 100 4 251 54 68 2 124 2.7 1.5 2.0 2.0 0.94 10 Oct-23 142 120 3 265 57 65 2 124 2.5 1.8 1.5 2.1 0.91 11 Nov-23 113 138 3 254 56 66 2 124 2.0 2.1 1.5 2.0 0.93 12 Dec-23 127 136 1 264 58 68 2 128 2.2 2.0 0.5 2.1 0.91 Average MPU Oil Allocation FactorWell Test Count Active Well Count Average Well Test per well Annual Plans of Development Review (41st - 2023 and 42nd - 2024) The following annual report describes the operations conducted under the 41st POD as required by 11 AAC 83.343(d). A. 41st POD Production Summary During calendar year 2023, the MPU produced approximately 9,021 million cubic feet (“MMcf”) of gas and 14,772 thousand barrels (“Mbbl”) of oil.1 From January 1, 2023 through December 31, 2023, the average daily production rate was 40,595 barrels of oil per day (“BOPD”). B. 41st POD Drilling Program Hilcorp Alaska anticipated drilling up to 16 new wells under the 41st POD (12 Schrader Bluff wells, 2 Kuparuk wells, and 2 Ugnu (undefined) wells). During the 41st POD period, Hilcorp Alaska has drilled 14 new wells as detailed below: • I Pad – Successfully completed drilling three wells (one injectors, two producers). o I-31 – horizontal producer – Schrader Bluff Oa Sand o I-32 – horizontal injector – Schrader Bluff Oa Sand o I-33 – horizontal producer – Schrader Bluff Oa Sand • M Pad –Successfully completed seven wells (three injectors, four producer). o M-32 – horizontal producer – Schrader Bluff Oa Sand o M-33 – horizontal injector – Schrader Bluff Oa Sand o M-60 – horizontal producer – Schrader Bluff Oa Sand o M-61 – horizontal injector – Schrader Bluff Oa Sand o M-62 – horizontal producer – Schrader Bluff Oa Sand o M-63 – horizontal injector – Schrader Bluff Oa Sand o M-64 – horizontal producer – Schrader Bluff Oa Sand • B Pad – Successfully drilled four wells (two injectors, two producer) detailed below. o B-37 – horizontal producer – 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 prod uced/sold from the Milne Point field is conventional black oil. o B-38 – horizontal injector – Schrader Bluff Oa Sand o B-39 – horizontal producer – Schrader Bluff Oa Sand o B-40 – horizontal injector – Schrader Bluff Oa Sand Two Ugnu wells were deferred for next year drilling due to availability of better I pad Schrader Bluff Oa sand wells.Two Kuparuk wells were dropped because of updated forecast and risking. C. 41st POD Workover Program Hilcorp Alaska executes workovers as needed to maintain and optimize production. The following 31 workovers were executed during the 41st POD period. • F-62A - ESP Swap • L-46 - Casing Repair • H-16 - Install JP • H-15 - Complete in N-sands • L-57 - ESP Swap • L-02 - ESP Swap • E-19 - ESP to JP • I-04 - Convert to Injector • E-15 - ESP Swap • L-57 - Jet Pump Producer • L-36 - ESP Swap • L-43 - ESP Swap • K-05 - ESP Swap • K-30 - ESP Swap • F-09 - ESP Swap • F-81 - ESP Swap • L-13A - ESP Install • F-94 - ESP Swap • L-39A - ESP Install • M-22 - Install Screens • C-23 - Kuparuk Recomplete • B-32 - Convert to Jet Pump • K-13 - ESP Swap • L-57 - JP to ESP • F-116 - ESP Swap • L-40 - ESP Swap • B-28 - Tubing Swap • E-37 - Conter to JP • E-17 - Tubing Swap • L-47 - JP convert to ESP • J-08 - P&A D. 41st POD Sidetrack Drilling Program Hilcorp Alaska anticipated performing coiled tubing drilling operations on six wells during the 41st POD period. The following 6 coiled tubing sidetracks were executed in 2023: • B-15A • L-13A • L-39B • C-02A • F-10A • F-89A Two in-zone rotary sidetracks out of existing wells F-34 and F-17 were attempted. F-17 encountered difficulties exiting the window, stuck the BHA, and had to severe from the drillstring. Initial fishing attempts were unsuccessful, additional attempts may be made. The F-34 sidetrack was successfully executed, drilled out from the existing lateral, found additional pay A-sand as well as the water contact helping to appraise the value of future drilling targets. E. 41st POD Major Facility Projects Hilcorp Alaska completed the following facility projects outlined in the 41st POD: • Tract junction heater installation • I Pad production header installation The following additional projects were executed during the 41st POD period: • Subtantial progress on a 3rd oil separation train at CFP • Completion and startup of F pad on-pad water separation III. 42nd PLAN OF DEVELOPMENT AND OPERATIONS For the period of January 13, 2024 through January 12, 2025, Hilcorp Alaska anticipates completing the following drilling, workover and facility projects. A. Proposed Drilling Program Hilcorp Alaska anticipates drilling up to 20 new wells during the 42nd POD period. Updated forecasts and risking of our Kuparuk reservoir prospects have triggered us to resort the queue of projects and focus on Schrader development during the 42nd POD period. The 42nd POD will be amended to reflect our anticipated changes to the drilling program. B. Proposed Sidetrack Drilling Program Hilcorp Alaska anticipates performing coiled tubing drilling operations on six wells during the 42nd POD period. C. Proposed Wellwork and Workover Program Hilcorp Alaska operates a dedicated workover rig in the MPU to maintain and enhance production as needed; these activities will continue during the 42nd POD period. D. Major Facility Projects Key facility projects Hilcorp Alaska anticipates undertaking during the 42nd POD period may include: • E Pad power fluid separation • H Pad power fluid separation • Return gas injection to F Pad through existing gas injection lines • Reactivate D Pad and transmission line to B Pad 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. • Continue targeted facility upgrades to increase production capacity of Milne Point Unit.