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Home My WebLink AboutERIO 006 INDEX ERIO No 6 Colville River Unit Narwhal Reservoir 1. September 16, 2019 ConocoPhillips (Alaska), Inc. Approval of Pilot Injection in the Narwhal Reservoir’ 2. September 18, 2019 Notice of Hearing, affidavit of mailing, e-mail list, bulk mailing list 3. ------------------------- Pilot injection progress reports 4. July 14, 2022 Request for admin approval to extend for 2 years (ERIO 6.001) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage Alaska 99501 Re: THE APPLICATION OF ConocoPhillips Alaska, Inc. to gain authorization to conduct a pilot enhanced recovery injection project in the Narwhal Reservoir Colville River Unit Docket Number: ERIO-19-001 Enhanced Recovery Injection Order No. 6 Colville River Unit Narwhal Reservoir North Slope Borough, Alaska December 17, 2019 IT APPEARING THAT: 1. By application dated September 17, 2019, (Application), ConocoPhillips Alaska, Inc. (CPAI) in its capacity of operator of the Colville River Unit (CRU) requested an Enhanced Recovery Injection Order (ERIO) authorizing a pilot injection project for pressure maintenance and enhanced recovery of hydrocarbons from the Narwhal Reservoir within the CRU. 2. Pursuant to 20 AAC 25.540, the Alaska Oil and Gas Conservation Commission (AOGCC) tentatively scheduled a public hearing for October 29, 2019. On September 17, 2019, the AOGCC published notice of that hearing on the State of Alaska's Online Public Notice website and on the AOGCC's website, electronically transmitted the notice to all persons on the AOGCC's email distribution list, and mailed printed copies of the Notice of Public Hearing to all persons on the AOGCC's mailing distribution list. On September 18, 2019, the notice was published in the ANCHORAGE DAILY NEWS. 3. No comments on the application or request for hearing were received. 4. CPAI submitted sufficient information in its application to enable the AOGCC to make a decision without a hearing. The hearing was vacated on October 10, 2019. FINDINGS: 1. Affected Area: The Affected Area lies onshore within the CRU, North Slope Borough, Alaska. The Narwhal Reservoir is currently being developed from the CD4 drillsite. 2. Owners and Landowners: CPAI is the operator for the CRU. Working interest owners are CPAI, Petro -Hunt LLC, XH LLC, Rosewood Resources Inc., and William Herbert Hunt Trust Estate. The State of Alaska, Department of Natural Resources is the landowner of the Affected Area. 3. Exploration Delineation and Production History: During June 2019, CPAI drilled the CRU CD4 -595 well (PTD 218-123) to determine the feasibility of drilling and completing development wells in the Narwhal Reservoir from the CD4 drillsite. CD4 -595 began producing in October 2019. The proposed pilot injection project would evaluate the feasibility of implementing an enhanced recovery project in the Narwhal Reservoir. To date four wells have penetrated the Narwhal Reservoir in the CRU and over ten wells in the vicinity of the CRU and Pikka Unit. ERIO 6 December 17, 2019 Page 2 of 6 4. Pool Identification: The Narwhal Reservoir is still in the appraisal stages so a formal pool has not been defined. The Narwhal Reservoir sands are broadly age equivalent to the Nanushuk Group. CPAI proposes defining the Narwhal Reservoir as the accumulation of oil that is common to and correlates with the accumulation found in the Qugruk 3 well from 4,192 to 5,152 ft measured depth. 5. Geology: a. Structure: The Narwhal Reservoir is a north -south elongate, eastward prograding deltaic marine sand with a combined structural-stratigraphic trapping mechanism. b. Stratigraphy: The Narwhal Reservoir is late Cretaceous -aged prograding deltaic marine sand. It is a Brookian topset play containing thick deltaic marine sands (up to 800 feet of gross sand). The Narwhal Sands extend for approximately 35 miles parallel to the north -trending depositional strike, and five miles in the depositional dip direction. Up dip the sands pinch out due to either onlap or truncation beneath a ravinement surface. c. Rock Properties: The Narwhal Reservoir is lower very fine to lower fine-grained lithic arenites. In the Putu 2A well net sand porosities are 21-22%, air permeability is 10-123 millidarcies, and water saturation is 23-42%. Sands with porosities of less than 15% are not considered pay at this time. d. Faults: 3D seismic indicates there are no large faults in the development area that displace the Narwhal Reservoir. Sub -seismic faulting may exist in the reservoir. e. Trap Configuration and Seals: The Narwhal Reservoir is a combined structural- stratigraphic trap with structural dips of 1-5° between wells. Data suggest a hydrocarbon column of greater than 600 feet. An overlying claystone with thin siltstone beds in the Nanushuk Group below the K-3 marker provides the upper confining interval. This upper confining interval is 240-310 feet thick. Marine mudstones and shales deposited in a slope setting provides the lower confining interval. The lower confining interval is 20-100 feet thick. 6. Reservoir Continuity: Investigating reservoir continuity is one of the goals of the pilot injection project proposed by CPAI. There does not appear to be reservoir compartmentalization due to faulting in the affected area, but sub -seismic faulting or other mechanisms could lead to compartmentalization. 7. Reservoir Fluid Contacts: To date, no hydrocarbon contacts have been defined in the Narwhal Reservoir within the Affected Area. 8. Reservoir Fluid Properties: A full characterization of the hydrocarbon properties in the Narwhal Reservoir is not currently available. Data from exploratory wells suggests the oil is slightly undersaturated. 9. In -Place and Recoverable Volume Estimates: Due to the Narwhal Reservoir still being under appraisal no in-place or recoverable reserves information is available. Modeling indicates recoveries of less than 5% without injection support and approximately 30% under waterflood. 10. Future Development Plans: The scope of the pilot project is to drill the CD4 -594 injection well to the east of the existing CD4 -595 production well and, depending on the results of this well, perhaps drill another injection well to the west of the CD4 -595 well so that a fully supported producer/injector pattern can be tested long term. If the pilot project proves development to be feasible and economically viable a larger full field development of the ERIO 6 December 17, 2019 Page 3 of 6 Narwhal Reservoir may be undertaken and would likely be a line -drive water alternating gas flood with horizontal producers and injectors. 11. Confining Layers for Iniection: Approximately 240-310 feet of claystone with thin siltstone beds overlying the Narwhal Reservoir and below the K3 marker represents the upper confining interval. Approximately 20-100 feet of marine mudstones and shales underlying the Narwhal Reservoir represents the lower confining interval. 12. Iniection Rates: The anticipated water injection rate for this pilot project is 2,000-8,000 BWPD per injection well. 13. Iniection Pressures: Injection into the Narwhal Reservoir will occur above the fracture gradient (0.6 psi./ft) of the Narwhal Sands but below the fracture gradient (0.85 psi/ft) of the upper confining interval. At 4,100 ft TVDSS the targeted injection pressure will be 3,075 psi (0.75 psi/ft gradient) and the maximum injection pressure will be 3,280 psi (0.8 psi/ft gradient). 14. Fracture Pronaeation and Confinement: Fractures will propagate within the Narwhal Reservoir but will not propagate into the confining interval as long as injection pressures are maintained below the 0.85 psi/ft fracture gradient of the overlying seal. 15. Freshwater Strata: Area Injection Order 1813, which has an affected area that overlaps the proposed affected area of this pilot project, concluded there are no underground sources of drinking water beneath the permafrost. 16. Aquifer Exemption Order: An aquifer exemption is not required due to the lack of underground sources of drinking water in the project area as noted in Finding 15. CONCLUSIONS: I. An Enhanced Recovery Injection Order is appropriate to authorize the proposed pilot injection project in the Narwhal Reservoir within the CRU. 2. Reservoir simulation modeling shows water injection into the Narwhal Reservoir should substantially improve oil recovery, but the technical and economic feasibility of conducting such an operation is not currently known. 3. The maximum permitted injection pressure of 0.8 psi/ft is well below the pressure needed to initiate fractures in the confining intervals. As such, the confining intervals will ensure that injected fluids remain in the Narwhal Reservoir. NOW THEREFORE IT IS ORDERED: The underground injection of fluids for pressure maintenance and enhanced recovery is authorized in the following area, subject to the following rules and 20 AAC 25, to the extent not superseded by these rules: Affected Area: Sections 28, 29, 32, & 33, Township I 1 North, Range 5 East, Umiat Meridian Rule 1 Authorized Iniection Strata for Enhanced Recovery ERIO 6 December 17, 2019 Page 4 of 6 Within the Affected Area, the Class II fluids specified in Rule 3 below may be injected for the purposes of pressure maintenance and enhanced recovery into strata defined as those which correlate with, and are common to, the formation found in the Qugruk 3 well from 4,192 to 5,152 feet measured depth. Rule 2 Fluid Iniection Wells The injection of fluids must be conducted through a new well that has been permitted in conformance with 20 AAC 25.005 as a service well for injection, or through an existing well that AOGCC has approved for conversion to a service well for injection, in conformance with 20 AAC 25.280. Rule 3 Authorized Fluids for Iniection for Enhanced Recovery Fluids authorized for injection are: a. Source water from the KRU seawater treatment plant; b. Produced water from the CRU and Greater Moose's Tooth Unit; c. Fluids used during hydraulic stimulation of the injection well; d. Tracer survey fluids to monitor reservoir performance; e. Fluids used to improve near wellbore injectivity (acids, solvents, etc.); f. Fluids used to seal wellbore intervals which negatively impact recovery (cement, resin, etc.); g. Fluids associated with freeze protection (diesel, crude, glycol, methanol, etc.); h. Standard oilfield chemicals (corrosion inhibitor, scale inhibitor, etc.); and i. Sump fluid, hydrotest fluid (excluding fluids derived from tests of transportation pipelines), rinsate generated from washing mud hauling trucks, excess well work fluids, and treated camp effluent and mixtures involving such fluids. Rule 4 Authorized Iniection Pressure for Enhanced Recovery Injection pressures shall not exceed the maximum injection gradient of 0.8 psi/ft to ensure containment of injected fluids within the defined Affected Area and injection interval. Rule 5 Monitorin¢ Tubine-Casing Annulus Pressure Inner annulus, outer annulus, and tubing pressures for all injection and production wells shall be monitored and recorded at least daily, except if prevented by extreme weather condition, emergency situation, or similar unavoidable circumstances. All monitoring results shall be documented and available for AOGCC inspection. Rule 6 Demonstration of Tubing/Casing Annulus Mechanical Integrity The mechanical integrity of each injection well must be demonstrated before injection begins and before returning a well to service following any workover affecting mechanical integrity. An AOGCC-witnessed MIT must be performed after injection is commenced for the first time in a well, to be scheduled when injection conditions (e.g., temperature, pressure, rate, etc.) have stabilized. Subsequent tests must be performed at least once every four years thereafter. Unless an alternate means is approved by the AOGCC, mechanical integrity must be demonstrated by a tubing/casing annulus pressure test using a surface pressure of 1,500 psi or 0.25 psi/ft ERIO 6 December 17, 2019 Page 5 of 6 multiplied by the vertical depth of the packer, whichever is greater, that shows stabilizing pressure and does not change more than 10 percent during a 30 -minute period. Results of MITs must be readily available for AOGCC inspection and sent to the AOGCC before the 5' of the following month. Rule 7 Well Inteerity and Confinement Whenever any pressure communication, leakage, or lack of injection zone isolation is indicated by an injection rate, operating pressure observation, test, survey, log, or any other evidence (including outer annulus pressure monitoring of all wells within a one-quarter mile radius of where the Narwhal Reservoir is not cemented), the Operator shall notify the AOGCC by the next business day and submit a plan of corrective action on a Form 10-403 for AOGCC approval. The Operator shall immediately shut in the well if continued operation would be unsafe or would threaten contamination of freshwater. A monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the AOGCC for all injection wells for which well integrity failure or lack of injection zone isolation is indicated. Rule 8 Notification of Improper Class II Iniection Injection of fluids other than those listed in Rule 3 without prior authorization is considered improper Class II injection. Upon discovery of such an event, the operator must immediately notify the AOGCC, provide details of the operation, and propose actions to prevent recurrence. This requirement is in addition to and does not relieve the operator of any other obligations under the notification requirements of any other State or Federal agency, regulation or law. Rule 9 Other Conditions If fluids are found to be fracturing the confining zone or migrating out of the approved injection stratum, the Operator must immediately shut in the injection wells and immediately notify the AOGCC. Injection must not be restarted unless approved by the AOGCC. Rule 10 Expiration Date This Enhanced Recovery Injection Order shall expire 3 years after the month in which injection activity commences unless an extension is granted by the AOGCC. Rule 11 Reportina Requirements By April I" of each year, starting in 2021, the operator must submit a progress report on the pilot injection project to the AOGCC. Within 90 -days of the end of the pilot injection project the operator must submit a final report to the AOGCC. These reports shall include: - Information on any adverse events related to the pilot injection project that may have occurred, - The average and maximum injection rates and pressures for each injection well during injection activities (data from shut in periods shall be excluded when calculating the average values), - The results of any surveillance and/or tracer testing that was conducted, - Discussion on whether an enhanced recovery response was noted in CD4 -595, and - Discussion of plans for the upcoming year. Rule 12 Administrative Action ERIO 6 December 17, 2019 Page 6 of 6 Upon proper application, or its own motion, and unless notice and public hearing are otherwise required, the AOGCC may administratively waive the requirements of any rule stated herein or administratively amend this order as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. DONE at Anchorage, Alaska and dated December 17, 2019. ere . Price Isie L. Chmielowski ssioner, Chair missioner Commissioner APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing aperiod of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs Gr IGINAL Bernie Karl K&K Recycling Inc. Gordon Severson Penny Vadla P.O. Box 58055 3201 Westmar Cir. 399 W. Riverview Ave. Fairbanks, AK 99711 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 George Vaught, Jr. Darwin Waldsmith Richard Wagner P.O. Box 13557 P.O. Box 39309 P.O. Box 60868 Denver, CO 80201-3557 Ninilchik, AK 99639 Fairbanks, AK 99706 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov ADMINISTRATIVE APPROVAL ENHANCED RECOVERY INJECTION ORDER 6.001 Mr. Greg Hobbs Staff Regulatory Engineer ConocoPhillips Alaska, Inc. 700 G Street, ATO 1562 Anchorage, AK 99510 Re: Docket Number: ERIO-22-001 Request for Administrative Approval to extend Enhanced Recovery Injection Order 6 for two years. Colville River Unit, Narwhal Reservoir Dear Mr. Hobbs: By letter dated July 14, 2022, ConocoPhillips Alaska, Inc. (CPAI) requested administrative approval to extend the expiration date of Enhanced Recovery Injection Order 6 (ERIO 6) for two years. In accordance with 20AAC 25.556(d),the Alaska Oil and Gas Conservation Commission (AOGCC) hereby GRANTS, CPAI’s request. ERIO 6 was issued on December 17, 2019 and authorized a pilot enhanced oil recovery (EOR) injection project in the Narwhal Reservoir in the Colville River Unit. Rule 10 of ERIO 6 set an expiration date of 3 years after the month in which injection activity commences unless an extension is granted by the AOGCC. The injection activity authorized by ERIO 6 commenced in February 2020. The project envisioned by ERIO 6 involved a full injection pattern (i.e., a central horizontal producer with a horizontal injector on either side of the producer), but to date only half the pattern has been put on injection. In order to properly evaluate the EOR performance full pattern injection needs to occur. Approving a two-year extension to ERIO 6 will allow sufficient time to collect performance data from a full pattern injection project so that the feasibility of expanding the EOR project pool wide can be evaluated. Since the date of first injection is now known setting a specific expiration date instead of an expiration date based on a milestone is appropriate. NOW THEREFORE IT IS ORDERED that Rule 10 of ERIO 6 is revised as follows: Rule 10 Expiration Date (Revised ERIO 6.001) This Enhanced Recovery Injection Order shall expire March 31, 2025, unless an extension is granted by the AOGCC. ERIO 6.001 January 31, 2023 Page 2 of 2 DONE at Anchorage, Alaska and dated January 31, 2023. Brett W. Huber, Sr. Jessie L. Chmielowski Chair, Commissioner Commissioner GregRU\ C. Wilson Commissioner RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Gregory Wilson Digitally signed by Gregory Wilson Date: 2023.01.30 15:35:28 -09'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2023.01.30 15:41:57 -09'00' Brett W. Huber. Sr. Digitally signed by Brett W. Huber. Sr. Date: 2023.01.30 15:47:03 -09'00' 1 Carlisle, Samantha J (OGC) From:Carlisle, Samantha J (OGC) <samantha.carlisle@alaska.gov> Sent:Tuesday, January 31, 2023 8:19 AM To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Enhanced Recovery Injection Order 6.001 (Colville River Unit) Attachments:erio6.001.pdf Docket Number: ERIO-22-001 Request for Administrative Approval to extend Enhanced Recovery Injection Order 6 for two years. Colville River Unit, Narwhal Reservoir Samantha Carlisle AOGCC Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1223 __________________________________ List Name: AOGCC_Public_Notices@list.state.ak.us You subscribed as: samantha.carlisle@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.carlisle%40alaska.gov Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711 mailed 1/31/23 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov ADMINISTRATIVE APPROVAL ENHANCED RECOVERY INJECTION ORDER 6.002 Mr. Ian Ramshaw Manager, WNS Development ConocoPhillips Alaska, Inc. P.O. Box 100360 Anchorage, AK 99510-0360 Re: Docket Number: AIO-23-019 Request to terminate Enhanced Recovery Injection Order 6 Colville River Unit Dear Mr. Ramshaw: By letter dated July 17, 2023, ConocoPhillips Alaska, Inc. (CPAI) requested that the vertical limits of Area Injection Order 35 (AIO 35) be expanded and that additional enhanced oil recovery (EOR) injection fluids be authorized. CPAI also requested that Enhanced Recovery Injection Order No. 6 (ERIO 6) be terminated. In accordance with 20 AAC 25.556(d), the Alaska Oil and Gas Conservation Commission (AOGCC) hereby GRANTS CPAI’s request to terminate ERIO 6. ERIO 6 authorized a pilot EOR project in the Narwhal reservoir in the Colville River Unit (CRU). CPAI requested that the vertical limits of the injection interval of AIO 35 be expanded. The proposed expansion would bring the Narwhal reservoir into the area and vertical limits of the expanded AIO 35. The AOGCC approved CPAI’s request to expand the vertical limits of the injection interval specified in AIO 35 on December 19, 2023, and as such ERIO 6 is no longer needed to allow CPAI to continue injection into the Narwhal reservoir so ERIO 6 and its administrative approvals can be terminated. NOW THERFORE IT IS ORDERED Enhanced Recovery Injection Order No. 6 is terminated. ERIO 6.002 December 19, 2023 Page 2 of 2 DONE at Anchorage, Alaska and dated December 19, 2023. Brett W. Huber, Sr Jessie L. Chmielowski Gregory C. Wilson Chair, Commissioner Commissioner Commissioner RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2023.12.19 09:05:01 -09'00' Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2023.12.19 10:32:32 -09'00' Gregory Wilson Digitally signed by Gregory Wilson Date: 2023.12.19 12:50:03 -09'00' From:Christianson, Grace K (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] ERIO 6.002 and AIO 35A (CPAI) Date:Wednesday, December 20, 2023 2:52:34 PM Attachments:aio35A.pdf ERIO 6.002.pdf Request to terminate Enhanced Recovery Injection Order 6 Colville River Unit And THE APPLICATION OF CONOCOPHILLIPS ALASKA, INC. to expand the authorized injection interval for underground injection of fluids for enhanced oil recovery in the Qannik Oil Pool and to terminate Enhanced Recovery Injection Order 6, Colville River Unit, Arctic Slope, Alaska Best, Grace Christianson Executive Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 907-793-1230 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska, and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use, or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it without first saving or forwarding it, and so that the AOGCC is aware of the mistake in sending it to you, contact Grace Christianson at (907-793-1230 ) or (grace.christianson@alaska.gov). __________________________________ List Name: AOGCC_Public_Notices@list.state.ak.us You subscribed as: samantha.carlisle@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.carlisle%40alaska.gov INDEXES 4 Greg Hobbs Staff Regulatory Engineer 700 G Street, ATO 1562 Anchorage, AK 99510 (907) 263-4749 (office) Greg.S.Hobbs@conocophillips.com July 14, 2022 Jeremy M. Price, Chair Alaska Oil and Gas Conservation Commission 333 W. 7th Ave #100 Anchorage, Alaska, 99501-3539 RE: Request for an administrative amendment, extending Enhanced Recovery Injection Order No. 6 (ERIO 6) for two years Dear Commissioner Price: ConocoPhillips Alaska, Inc. (CPAI) as Operator, and sole working interest owner of the leases associated with ERIO 6 in the Colville River Unit, requests that the Alaska Oil and Gas Conservation Commission administratively amend ERIO 6 for a 2-year extension. ERIO 6 is applicable to the Narwhal sand within the Qannik Oil Pool. Rule 10 of ERIO 6 states the order shall expire 3 years after the month in which injection activity commences. Injection commenced in February of 2020 when the CD4-594 well commenced injection. CPAI is requesting a 2-year extension to complete pilot injection appraisal activity. CPAI is working to complete the original scope of the pilot injection project by completing and observing a full waterflood pattern with two offset injectors. The first injection well commenced the order expiration clock. This well has provided important but limited half-pattern injection data. The half-pattern does not achieve the original scope of the pilot injection project. The second injection well, CD4-597, is expected to be drilled in the second half of 2022 and will enable CPAI to obtain the full pattern data described in the original scope of ERIO 6. Consequently, a 2-year extension of ERIO 6 is being sought to provide sufficient time to observe injection support character in the full pattern and acquire additional data once the second injection well is drilled and brought online. This information will ultimately inform the wider Narwhal development to optimize and help maximize the recovery of the resource. Please contact Aaron McKean (907-265-6247, aaron.j.mckean@conocophillips.com) if you have questions or require additional information. Regards, Greg Hobbs Regulatory Engineer ConocoPhillips Alaska, Inc. By Samantha Carlisle at 8:31 am, Jul 15, 2022 Digitally signed by Greg Hobbs DN: O=Wells, CN=Greg Hobbs, E=greg.s.hobbs@conocophillips.co m Reason: I am the author of this document Location: your signing location here Date: 2022.07.14 16:37:01-08'00' Foxit PDF Editor Version: 11.2.1 Greg Hobbs Request for Administrative Amendment July 14, 2022 Page 2 of 2 Cc: Erik Kenning, Arctic Slope Regional Corporation Derek Nottingham, Alaska Department of Natural Resources, Division of Oil and Gas Wayne Svejnoha, United States Department of Interior, Bureau of Land Management Andy Mack, Kuukpik Corporation 3 April 1, 2023 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Commissioner Brett Huber RE: • 2022 ERIO6 Narwhal Pilot Injection Project Progress Report • Form 10-412 for ERIO6 Narwhal Undefined Oil Pool Dear Commissioner Huber, ConocoPhillips Alaska Inc., as operator and sole working interest owner of the Colville River Unit, submits the 2022 annual progress report on the Narwhal pilot injection project in accordance with Rule 11. Sincerely, Ian Ramshaw Manager Western North Slope Asset Development Ian Ramshaw WNS Asset Development Manager ConocoPhillips Alaska, Inc. PO Box 100360 Anchorage, Alaska 99510-0360 Phone: (907) 263-4464 2022 ERIO6 Narwhal Pilot Injection Project Progress Report 2022 ERIO6 Narwhal Pilot Injection Project Progress Report ConocoPhillips Alaska Inc., as operator and sole working interest owner of the Colville River Unit, submits the 2022 annual progress report on the Narwhal pilot injection project in accordance with Rule 11. Rule 11 reporting requirements state that by April 1 of each year, starting in 2021, the operator must submit a progress report on the pilot injection project to the AOGCC. Within 90-days of the end of the pilot injection project the operator must submit a final report to the AOGCC. These reports shall include: • Information on any adverse events related to the pilot injection project that may have occurred, • The average and maximum injection rates and pressures for each injection well during injection activities (data from shut in periods shall be excluded when calculating the average values), • The results of any surveillance and/ or tracer testing that was conducted, • Discussion on whether an enhanced recovery response was noted in CD4 -595, and • Discussion of plans for the upcoming year. A: Information on any Adverse Events Related to the Pilot Injection Project that may have Occurred No adverse events related to the pilot injection project were noted. B: The Average and Maximum Injection Rates and Pressures for each Injection Well During Injection Activities CD4-594 is currently the only active injector in the Narwhal pilot program. Average monthly water injection rate and wellhead pressure are shown on the table below: Month Inj. BWPD Wellhead psi Jan-22 3503 1391 Feb-22 2350 1318 Mar-22 2154 1193 Apr-22 0 0 May-22 0 0 Jun-22 0 0 Jul-22 0 0 Aug-22 0 0 Sep-22 2328 987 Oct-22 2164 1098 Nov-22 1740 1075 Dec-22 1212 980 Jan-23 1725 1094 The maximum daily rate was 4,544 BWPD and maximum daily wellhead pressure was 1,440 psi. 2022 ERIO6 Narwhal Pilot Injection Project Progress Report C: The Results of any Surveillance and/or Tracer Testing that was Conducted Downhole pressure monitoring indicated sand continuity between injector and producer during injection pulse testing. No new surveillance specific tests were conducted since the last report. The wells are now on long term production & injection. D: Discussion on Whether an Enhanced Recovery Response was Noted in CD4-595 Sand continuity was indicated by downhole pressure monitoring. After an initial increase, formation gas/oil ratio stabilized. These are considered positive indicators of reservoir response and were observed without indication of waterflood conformance issues. CD4-595 and CD4-594 are now on long term production & injection. The rates achieved in each well continue to agree with their respective forecasts which suggests water injection support between the two wells. E: Discussion of Plans for the Upcoming Year. The second injection well, CD4-597, was drilled offset to CD4-595. CD4-597 is currently awaiting hydraulic fracture stimulation. This will be followed by cleanup production and conversion to sustained injection. CD4-595 will continue to be produced and observed for indications of pressure support and flood conformance with offset injection on both sides. Attachment 1: 10-412 Reservoir Pressure Report 2 2021 ERIO6 Narwhal Pilot Injection Project Progress Report 2021 ERIO6 Narwhal Pilot Injection Project Progress Report ConocoPhillips Alaska Inc., as operator and sole working interest owner of the Colville River Unit, submits the 2021 annual progress report on the Narwhal pilot injection project in accordance with Rule 11. Rule 11 reporting requirements state that by April 1 of each year, starting in 2021, the operator must submit a progress report on the pilot injection project to the AOGCC. Within 90-days of the end of the pilot injection project the operator must submit a final report to the AOGCC. These reports shall include: • Information on any adverse events related to the pilot injection project that may have occurred, • The average and maximum injection rates and pressures for each injection well during injection activities (data from shut in periods shall be excluded when calculating the average values), • The results of any surveillance and/ or tracer testing that was conducted, • Discussion on whether an enhanced recovery response was noted in CD4 -595, and • Discussion of plans for the upcoming year. A: Information on any Adverse Events Related to the Pilot Injection Project that may have Occurred No adverse events related to the pilot injection project were noted. B: The Average and Maximum Injection Rates and Pressures for each Injection Well During Injection Activities CD4-594 is currently the only active injector in the Narwhal pilot program. Average monthly water injection rate and wellhead pressure are shown on the table below: Month Inj. BWPD Wellhead psi Jan-21 ---------- ---------- Feb-21 ---------- ---------- Mar-21 ---------- ---------- Apr-21 ---------- ---------- May-21 ---------- ---------- Jun-21 ---------- ---------- Jul-21 ---------- ---------- Aug-21 ---------- ---------- Sep-21 ---------- ---------- Oct-21 ---------- ---------- Nov-21 ---------- ---------- Dec-21 4128 1284 Jan-22 3503 1391 The maximum daily rate was 5614 BWPD and maximum daily wellhead pressure was 1440 psi. 3 2021 ERIO6 Narwhal Pilot Injection Project Progress Report C: The Results of any Surveillance and/or Tracer Testing that was Conducted Injection/production character is consistent with sand continuity. No inter-well tracers were utilized. D: Discussion on Whether an Enhanced Recovery Response was Noted in CD4-595 CD4-594 injection has been able to maintain support for CD4-595 offtake. CD4-595 demonstrates production character consistent with receiving waterflood support. Downhole pressure monitoring continues to indicate sand connectivity. These positive indicators were observed without signs of waterflood conformance issues. E: Discussion of Plans for the Upcoming Year. Completion of the half-pattern CD4-594/595 injection/production test is expected in 2022. Planning continues for a second injection well offset to CD4-595. A full-pattern injection/production test is intended to follow. 4 2021 ERIO6 Narwhal Pilot Injection Project Progress Report Attachment 1: 10-412 Reservoir Pressure Report 2 2020 ERIO6 Narwhal Pilot Injection Project Progress Report 2020 ERIO6 Narwhal Pilot Injection Project Progress Report ConocoPhillips Alaska Inc., as operator and sole working interest owner of the Colville River Unit, submits the 2020 annual progress report on the Narwhal pilot injection project in accordance with Rule 11. Rule 11 reporting requirements state that by April 1 of each year, starting in 2021, the operator must submit a progress report on the pilot injection project to the AOGCC. Within 90-days of the end of the pilot injection project the operator must submit a final report to the AOGCC. These reports shall include: • Information on any adverse events related to the pilot injection project that may have occurred, • The average and maximum injection rates and pressures for each injection well during injection activities (data from shut in periods shall be excluded when calculating the average values), • The results of any surveillance and/ or tracer testing that was conducted, • Discussion on whether an enhanced recovery response was noted in CD4 -595, and • Discussion of plans for the upcoming year. A: Information on any Adverse Events Related to the Pilot Injection Project that may have Occurred No adverse events related to the pilot injection project were noted. B: The Average and Maximum Injection Rates and Pressures for each Injection Well During Injection Activities CD4-594 is currently the only active injector in the Narwhal pilot program. Average monthly water injection rate and wellhead pressure are shown on the table below: Month Inj. BWPD Wellhead psi Jan-20 0 ---------- Feb-20 428 203 Mar-20 4090 931 Apr-20 4139 974 May-20 5147 1379 Jun-20 0 ---------- Jul-20 0 ---------- Aug-20 0 ---------- Sep-20 0 ---------- Oct-20 2579 1372 Nov-20 2263 1339 Dec-20 0 ---------- Jan-21 0 ---------- The maximum daily rate was 8294 BWPD and maximum daily wellhead pressure was 1500 psi. 3 2020 ERIO6 Narwhal Pilot Injection Project Progress Report C: The Results of any Surveillance and/or Tracer Testing that was Conducted Downhole pressure monitoring indicated sand continuity between injector and producer during injection pulse testing. No inter-well tracers were utilized. D: Discussion on Whether an Enhanced Recovery Response was Noted in CD4-595 Sand continuity was indicated by downhole pressure monitoring. After an initial increase, formation gas/oil ratio stabilized. These are considered positive indicators of reservoir response and were observed without indication of waterflood conformance issues. However, production periods from CD4-595 were short enough in duration that the well remained transient. E: Discussion of Plans for the Upcoming Year. Planning continues for a second injection well offset to CD4-595. A full-pattern injection/production test is intended to follow. 4 2020 ERIO6 Narwhal Pilot Injection Project Progress Report Attachment 1: 10-412 Pressure Survey Results by Pool 2 STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUBMITINVOICE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVITOFPUBAACDV RTISMENT.TTAClIEDCOPYOF T. ADVERTISING ORDER NUMBER AO-20-004 FROM: AGENCY CONTACT: Jody Colombie/Samantha Carlisle Alaska Oil and Gas Conservation Commission DATE OF A.O.AGENCY PHONE: 333 West 7th Avenue 9/17/2019 907 279-1433 Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PHONE NUMBER: ASAP FAX NUMBER: 907 276-7542 TO PUBLISHER: Anchorage Daily News LLC SPECIAL INSTRUCTIONS: PO Box 140147 Anchorage, Alaska 99514-0174 TYPE OF ADVERTISEMENT: (✓ LEGAL f— DISPLAY r CLASSIFIED OTHER (Specify below) DESCRIPTION PRICE ERIO-19-001 Initials of who prepared AO: Alaska Non -Taxable 92-600185 SUBMIT INVOICE SHOWING ADVERTISING ORDER NO.. CERTIFIED AFPIDAVITOP PUBLICATION WITHATTACRED COPY OF ADYERTISMENT To: AOGCC 333 West 7th Avenue Anchora e, Alaska 99501 Pa e I of 1 TO(ai Of All Pa es $ REF Type Number Amount Date Comments I PVN VCO21795 2 Act AO-20-004 3 4 FIN AMOUNT SV Act Template I PCM LGR Object FY DIST LIQ 1 20 AOGCC 3046 20 2 3 4 Pur of tft� Title: Purchasing Authority's Signature Telephone Number 1. h cy. and receiving agenname must appear on all invoices and documents relating to this purchase. 2. state is registered free transactions under Chapter 32, IRS code, Registration number 92-73-0006 K. Items are for the exclusive use of the state and not forlresale. DISTRIBUTION: Division Fiscal/Original AO Copies: Publisher (faxed), Division Fiscal, Receiving Form: 02-901 Revised: 9/17/2019 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: ERIO-19-001 ConocoPhillips Alaska, Inc. Colville River Unit Narwhal Reservoir Application for Enhanced Recovery Operations (Pilot Water Project) ConocoPhillips Alaska, Inc. (CPA), by application dated September 16, 2019, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an Enhanced Recovery Operations to authorize a pilot waterflood project in the Narwhal Reservoir. CPA proposes to inject water into the Narwhal Reservoir with the CD4 -594 well with a surface location of Sec. 19 TI 1N, R5E, UM and a bottomhole location in Sec. 33 TI IN, R5E, UM The AOGCC has tentatively scheduled a public hearing on this application for October 29, 2019, at 10:00 a.m. at 333 West 7`h Avenue, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on October 4, 2019. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after October 6, 2019. In addition, written comments regarding this application may be submitted to the AOGCC at 333 West 7hh Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on October 21, 2019, except that, if a hearing is held, comments must be received no later than the conclusion of the October 29, 2019 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at (907) 793-1221, no later than October 27, 2019. JeAie L. Chmielowski Commissioner Bernie Karl K&K Recycling Inc. Gordon Severson Penny Vadla 3201 Westmar Cir. 399 W. Riverview Ave. P.O. Box 58055 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 Fairbanks, AK 99711 George Vaught, Jr. Darwin Waldsmith Richard Wagner P.O. Box 13557 P.O. Box 39309 P.O. Box 60868 Denver, CO 80201-3557 Ninilchik, AK 99639 Fairbanks, AK 99706 ANCHORAGE DAILY NEWS AFFIDAVIT OF PUBLICATION Account #: 270227 Order #: W0011585 Cost: $249.04 STATE OF ALASKA THIRD JUDICIAL DISTRICT Leilisi Misa being first duly sworn on oath deposes and says that she is a representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper September 18, 2019 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed Subscribed and sworn to before me this a3 day of 0& Notary Public in and for / The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION EXPIRES Notice of Public Nearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: ERIO-19-001 CondcoPhillipS Alaska, Inc. Colville River Unit Narwhal Reservoir Application for Enhanced Recovery Operations (Pilot Water Project) ConocoPhillips Alaska, Inc (CPA), by application dated September 16, 2019, requests the Alaska Oil and Gas Conservation Commission (ADGCC) issue an order for in Enhanced Recovery operations to auth CC) a pilot water project in the Narwhal Reservoir. CPA proposes to mlect water into the Narwhal Reservoir with the CD4 - 594 Well with a surface into of Sec. 19 T11 N, R5E, UM and a bottomhole location in Sec. 33 Tl IN, R5E, UM The AOGCC has tentatively scheduled a public hearing on this application for October 29, 2019, at 10:00 a.m. at 333 West 7th Avenue, Anchorage, Alaska 99501. To request that the tentativelscheduled y the AOGCC hearing no laterbe held, a written than 4:30 p.m. on request ober 4, 20W. fst be iled with If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearingg. To learn If the AOGCC will hold the hearing, call (907) 793-1221 aftat October 6, 2019. In addition, written comments regarding this application may be submitted to the AOGCC at 333 West 7th Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on October 21, 2019, except that, if a hearing is held, comments must be received no later than the conclusion of the October 29, 2019 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC'S Special Assistant, Jody Colombia, at (907) 793-1221, no later than October 27, 2019. By: /s/ Jessie L. Chmielowski Commissioner Published: September 18, 2019 '.F' Of ALASIrl P y NOS PRY P�gt"tC � \c ✓ada L. N0 Application to the Alaska Oil and Gas Conservation Commission for Approval of Pilot Injection into the Narwhal Reservoir Colville River Unit ConocoPhillips Alaska, Inc 9/16/2019 Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit Table of Contents Introduction.................................................................................................................................................... 20 AAC 25.402(c)(1) Plat of Wells Penetrating Injection Zone..................................................................... 3 5 20 AAC 25.402(c)(2) Operators and Surface Owners within One Quarter Mile of Injection Operations ...... 6 20 AAC 25.402(c)(3) Affidavit of Regarding Notice to Surface Owners.......................................................7 20 AAC 25.402(c)(4) Description of the Proposed Operation.......................................................................8 Circle/Tangentwith Proposed Injectors and Formation Penetrations................................5 20 AAC 25.402(c)(5) Description and Depth of Pool to be Affected.............................................................9 Figure 3: 20 AAC 25.402(c)(6) Description of the Formation.....................................................................................10 9 11 20 AAC 25.402(c)(7) Logs of the injection wells.........................................................................................12 Narwhal Top Structure Map......................................................................................................... 20 AAC 25.402(c)(8) Mechanical Integrity of Injection Wells......................................................................13 Figure 5: 20 AAC 25.402(c)(9) Injection Fluid Analysis and Injection Rates.............................................................15 20 AAC 25.402(c)(10) Estimated Average and Maximum Injection Pressures..........................................16 Fracture Gradient of Narwhal Upper Confining Layer.................................................................17 20 AAC 25.402(c)(11) Fracture Information................................................................................................17 20 AAC 25.402(c)(12) Quality of Formation Water.....................................................................................18 20 AAC 25.402(c)(13) Aquifer Exemption Reference.................................................................................19 20 AAC 25.402(c)(14) Incremental Hydrocarbon Recovery .......................................................................20 20 AAC 25.402(c)(15) Mechanical Condition of Wells Within '% Mile of Proposed Area ............................21 Page 2 ConocoPhillips Alaska, Inc. List of Figures Figure 1: Proposed Narwhal Pilot Injection Project Well Locations..............................................................4 Figure 2:%Mile Circle/Tangentwith Proposed Injectors and Formation Penetrations................................5 Figure 3: Qu ruk 3 Type Lo 9 11 Figure 4: Narwhal Top Structure Map......................................................................................................... Figure 5: Schematic of Proposed Injection Well.........................................................................................14 Figure 6: Fracture Gradient of Narwhal Upper Confining Layer.................................................................17 Page 2 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit Introduction This application to the Alaska Oil and Gas Conservation Commission (AOGCC) seeks endorsement and authorization for water injection into the Narwhal reservoir through a proposed waterflood pattern pilot. This project involves injecting water into the Narwhal reservoir (the Narwhal reservoir is defined in the section covering 20 AAC 25.402(c)(5) Description and Depth of Pool to be Affected) in order to test the injectivity of water and subsequent production response. The feasibility of water injection into the Narwhal reservoir has not been established and is therefore considered a "pilot" project. This pilot project will aid in determining the commercial viability of developing Narwhal as an enhanced oil recovery project. The impacted area of the pilot project is depicted below in Figure 1. The requested duration of this order is 3 years. This will allow time to drill the first injector, test injection performance, analyze results of the first injector, drill the second injector, test injection performance, and observe and analyze the results. In June 2019, the CD4 -595 exploration well was drilled to understand the ability to drill, complete, and produce the Narwhal horizon. The well was drilled as an exploration well within the CRU. No pool rules are established for this reservoir. Drilling of the first offset injector is planned for October 2019, with injection commencing on or around January 2020. Drilling timing of the second injector is contingent on the results of the first. The final development design for the Narwhal reservoir is expected to be a line -drive water alternating gas (WAG) flood with horizontal producers and injectors drilled along the maximum principal stress. The pilot results will inform whether this development concept is optimal. If a commercially viable discovery is established and the development is sanctioned, then ConocoPhillips will apply at that time to the AOGCC to establish pool rules and an area injection order. Page 3 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit Fiqure 1: Proposed Narwhal Pilot Injection Project Well Locations i ADL025569 ADL372095 YYall Type — Injection i — Producer l800 ( DYJ leex AD ADL37209T Sections ADL372096 ADL380077 T11N R4E 7/ ADL394211 '. TI1N R5E ADL384209 ADL380082 X ADL380081 ADLJ8890JADL \ 1587 ADL388902 ADL380D44 ADL390672 T10N R5E 710 ADL390675 ADL391773 ADL391915 ADL390674 ADL391914 ADL391535 pOL390877 ADL391016 ADL391015 ADL cc ADL391637 �� t Q=�cua. 91922 Page 4 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit 20 AAC 25.402(c)(1) Plat of Wells Penetrating Infection Zone The attached map (Figure 2) shows the proposed Narwhal injection wells penetrating the injection zone. A 1% mile radius around each injection lateral is displayed. Figure 2: 1/4 Mile Circle/Tangent with Proposed Injectors and Formation Penetrations ADL384211 Well Type — Injectlon Producer Existing Well 114 Mlle Circle Tangent Ocmi te.0 sex,tion, ADL380082 ADL380 T"62 T11 R5E ce 5 I v a ADL388903 \ADLL391687 ADL391590 T10N RSE . TConocoPhilfips as I 07/30/2019 —anew MMRX L carlwrgF! Page 5 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit 20 AAC 25.402(c)(2) Operators and Surface Owners within One Quarter Mile of Injection Operations Operators: Surface Owners: ConocoPhillips Alaska, Inc. Attention: John Hentges P. O. Box 100360 Anchorage, AK 99510-0360 Oil Search (Alaska) LLC Attn: Tim Jones PO Box 240927 Anchorage, AK 99524-0927 Kuukpik Corporation Mr. Joe Nukapigak PO Box 187 Nuiqsut, Alaska 99789-0187 Alaska Department of Natural Resources Division of Oil and Gas Attn: Kevin Pike, Unit Manager 550 West 7th Ave., Suite 1100 Anchorage, Alaska 99501 Page 6 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water injection into the Narwhal Reservoir Colville River Unit 20 AAC 25.402(c)(3) Affidavit of Jason C Parker Regarding Notice to Surface Owners Jason C. Parker, on oath, deposes and says: I am a Sr. Landman employed by ConocoPhillips Alaska, Inc., the Operator of the Colville River Unit, and I have responsibilities within the State of Alaska and personal knowledge of the matters set forth in this affidavit. On S 2019, 1 caused copies of the Application for Approval of Pilot Injection - in the Narwhal Reservoir within the Colville River Unit to be provided to the surface owners and operators of all land not operated by ConocoPhillips Alaska, Inc. within a quarter mile of the proposed injection wells as listed below: a. Kuukpik Corporation Attn: Mr. Joe Nukapigak PO Box 187 Nuiqsut, Alaska 99789-0187 Alaska Department of Natural Resources Division of Oil and Gas Attn: Kevin Pike, Unit Manager 550 West 7th Ave., Suite 1100 Anchorage, Alaska 99501 c. Oil Search (Alaska) LLC Attn: Tim Jones PO Box 240927 Anchorage, AK 99524-0927 Dated this `day of St, ru L, -r, 2019. son C. Par STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) SUBSCRIBED AND SWORN to before me this 1(o dayof�cI42a4x4,2019 M . 27, 2040. NOTARY PUBLIC IN AND FOR ALASKA My Commission Expires: Page 7 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit 20 AAC 25.402(c)(4) Description of the Proposed Operation This application to the Alaska Oil and Gas Conservation Commission (AOGCC) seeks endorsement and authorization for a pilot injection project in the Narwhal Reservoir within the Colville River Unit (CRU). The Narwhal pilot injection project involves drilling two offset injectors of the existing Narwhal exploration well CD4 -595. The first injector to be drilled will be named CD4 -594 and be located 1,000 to 3,000 feet east of the CD4 -595 well. The optimum pattern spacing for WAG development in this reservoir is still under analysis. Completion of the CD4 -594 injection well will allow interference and injection testing of the Narwhal reservoir to help establish the optimal pattern spacing and justify commerciality of the reservoir. Depending on the outcome of this first injection well and its testing, a second injection well may be drilled to continue a long-term injection and production test with a fully supported producer pattern centered around CD4 -595. The requested duration of this order is 3 years. This will allow time to drill the first injector, test injection performance, analyze results of the first injector, drill the second injector, test injection performance, and observe and analyze the results. Page 8 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit 20 AAC 25.402(c)(5) Description and Depth of Pool to be Affected The CD4 -594 injection well is a pilot appraisal well within the CRU. A Narwhal pool has not been established. If it is determined that commercially exploitable hydrocarbons exist within the Narwhal reservoir, and a project is sanctioned, then a pool will be established. The Narwhal reservoir is defined by the Qugruk 3 well with True Vertical Depth Sub Sea limits of 4,068-4,971 feet with a corresponding Measured Depth of 4,192 — 5,152 feet. Figure 3: Qugruk 3 Type Log Qugruk 3 Type Log Page 9 ConocoPhillips Alaska, Inc. NEEL 111OF F OF 111111 .. ,. �IIIIIIII .� 1 III,IIIIIII 1 ,. 11�'°IIIIIIIIII IIIIIIII 1 � ,. IIIA ,, IIII�IClllllll 1 ,. Illlll�llllllllll Illl�illllllll 1_ illlllllllll1111 til mmmi mmr 11m1I==&4 .A Page 9 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit 20 AAC 25.402(c)(6) Description of the Formation Stratigraphy and Sedimentology The Late Cretaceous Narwhal sandstone represents a north -south elongate, eastward prograding deltaic marine sand. The Nanushuk Group is broadly age equivalent to the Narwhal sands. The Narwhal sands in the CRU represent a Brookian topset play in which thick deltaic marine sands (up to 800 ft gross sand) are trapped stratigraphically. Over the length of the field, the Narwhal extends for approximately 35 miles parallel to depositional strike (north -south) and five miles in a depositional dip direction. Up -dip, to the west, these sands pinch -out due to either onlap or truncation beneath a ravinement surface. The Narwhal reservoir has been penetrated by approximately 4 wells in the CRU and over 10 wells in the vicinity of the CRU and Pikka Units. The range of core properties from the Putu 2A well in the net sand are 21-22% porosity, 10-123 millidarcies air permeability, and 23-42% water saturation. The sands are lower very fine to lower fine-grained lithic arenites with average compositions of 53% quartz, 16% feldspar, and 31 % lithics. Sands with porosities of less than 15% are generally non - pay. Structure and Trap Configuration The top composite Narwhal structure elevation ranges from 3,950 SSTVD to 5,500 SSTVD as depicted below in Figure 4. Structural dips between wells generally range from 1 to 5 degrees. The Narwhal accumulation is a combined structural-stratigraphic trap. Well data suggests a hydrocarbon column greater than 600 feet. 3D seismic indicates that there are no large faults in the development area that displace the Narwhal clinothem at the reservoir level. Sub -seismic faults may exist. At the Brookian level, borehole breakout data shows a maximum principle stress orientation oriented at N30W similar to the existing reservoirs produced through the Alpine Central Facility. However, the presence of only one mappable fault suggests a potential decrease in overall stress compared to Alpine level. Seals Confining zones are shown in Figure 3 and are: Upper Confining Interval Claystone with thin siltstone beds of the Cretaceous Nanushuk Group from below the K- 3 marker to the top Narwhal reservoir. Total thickness varies from 240 ft -310 ft. Lower Confining Interval Marine mudstones and shales deposited in a slope setting. Thickness varies from 20 ft to 100 ft. Page 10 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit Figure 4: Narwhal Top Structure Map Nanuq 3 C 15000 20000 Page 11 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit 20 AAC 25.402(c)(7) Loos of the Infection Wells Upon drilling of the injection wells, logs will be sent to the Commission in accordance with applicable AOGCC regulations. Page 12 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit 20 AAC 25.402(c)(8) Mechanical Integrity of Iniection Wells See Figure 5 below for a proposed injection well schematic The injection well design is similar to wells in the Colville River Unit (Alpine Field) but contain an additional casing string to manage borehole instability and facilitate use of managed pressure drilling (MPD) when drilling the highly deviated section of overburden between the surface shoe and the reservoir. MPD will be used to minimize borehole pressure cycling and provide sufficient overbalance to hold back the weak, mechanically unstable clay rich formations penetrated at >80 degrees. Surface casing set below the C40 marker in the Colville Group will be cemented back to surface. Within the pilot area, the base of permafrost is interpreted to be 1,500 ft. TVD. The intermediate hole will be drilled in two intervals with the first casing point below the C10 and the second casing point at approximately 85 degrees inclination below the K-3 and just above the Narwhal sand. The intermediate #1 section between the proposed surface casing shoe and the top of the C10 consists of clay matrix formations with interbedded siltstones. Top of cement for the casing will extend a minimum of 500 feet measured depth or 250 feet true vertical depth, whichever is greater, above the shoe or higher if any hydrocarbon bearing formations are encountered in accordance with 20 AAC 25.030(d)(5). The intermediate #2 section from the C10 to the Narwhal also consists of clay matrix formations with interbedded siltstones and the K-3 sand. A liner will be run and cemented to secure the shoe with top of cement extending a minimum of 1500 feet measured depth above the K-3 in accordance with 20 AAC 25.030(d)(5). The liner will then be tied back to surface. The Narwhal sand will be drilled horizontally and completed open hole with solid liner containing ball drop fracture sleeves and liner top hanger and packer. External swell packers may be added to isolate out of pay excursions and / or fault crossings along the lateral or to provide zonal control of the stimulation and future injection. The well will be completed with 4'/2 inch tubing to minimize hydraulic friction. The tubing/casing annulus pressure of each injection well will be tested in accordance with 20 ACC 25.412(c). Drilling and completion operations will be performed in accordance with applicable AOGCC regulations. In accordance with 20 AAC 25.412(d), cement quality logs, or other data approved by the Commission, will be provided for all injection wells to demonstrate isolation of the injected fluids to the approved interval. Page 13 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit Figure 5: Schematic of Proposed Injection Well CD4 -594 vi� Gress Roots Horizontal "Narwhal" Sand Injector COIIOCOPIilllps Drillilex 10 PPG LSND WBM 11 PPG LSND WBM 9 PPG (11 ppg W/ MPD) vempm 08M 8,2 PPG xnema%ic 1arnann82 M[ Nv Mra WM Head tart vadat a 6/10/19 -ND C9nducto IMd• 20"set ID�J-106.5' 16" Surface Hole I > 5/8" a 13 3/e" Liner hanger 2,739' MD' surfer-Casine an' 689 Tx9M 2,889' MD / 2,399 ND Tubing: 12-1/4" Intermediate 1 Hale d 35,083' ax" 126. Ldtl Tf61ue TOC gleM" MD / 3,111' NO 9 5/8" x r a.. Meier Qa f 9,%9' MO IMemiMiab 1: 95/8"io#'L80,T &S 10.119'M/a,.a9'ND TOC s 11,%0' LM I"W Two (LMV M0.1ve g-3) r x41/2' a.kv new cock liner hangar, Inuanholiafe 2: 8-3/4" Intermediate 2 Hole I 6-1/8" Production Hole I a-Vr 121ig L-M1V 63 F.Slrws Partbint 1S,M'-21J19'MD Page 14 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit 20 AAC 25.402(c)(9) Infection Fluid Analysis and Infection Rates The Narwhal Pilot Injection Project will occur at the CD4 drill site, a satellite drill site that is connected to the Alpine Central Processing Facility (ACF). ACF and its network of drill sites were built to allow only one type of water, either produced or sea, on a drill site at a time. Water service for each drill site is selected to optimize the production potential of the entire asset. CD4 is currently on sea water service, but this could change over the duration of the pilot project. ACF has demonstrated the compatibility of both produced water and sea water in Brookian age reservoirs over the past 10 years. No issues are expected with injection of either fluid into the Narwhal formation. Part of the purpose for this pilot is to confirm compatibility. Injection rates between 2,000 and 8,000 bbl/d are expected at each injection well drilled for the pilot project. Primary injection fluids include: • Beaufort seawater sourced from the Kuparuk seawater treatment plant • Produced water from all present and yet -to -be defined oil pools within the CRU and GMTU Other fluids may also be injected for reservoir stimulation, reservoir performance evaluation, freeze protection, chemical inhibition, or to otherwise ensure efficient and safe operation of the Narwhal injection wells. These fluids are not planned for continuous injection, or as a means for enhanced recovery. The volumes of these other fluids are not expected to hinder the recovery efficiency of performance. These other fluids include: • Fluids used during hydraulic stimulation • Tracer survey fluids to monitor reservoir performance • Fluids used to improve near wellbore injectivity (acid, solvents, etc.) • Fluids used to seal wellbore intervals which negatively impact recovery (cement, resin, etc.) • Fluids associated with freeze protection (diesel, crude, glycol, methanol, etc.) • Standard oilfield chemicals (corrosion inhibitor, scale inhibitor, etc.) • Sump fluid, hydrotest fluid (excluding fluids derived from tests of transportation pipelines), rinsate generated from washing mud hauling trucks, excess well work fluids, and treated camp effluent and mixtures involving such fluids Barium sulfate scale formation in production wells, as has been experienced to various degrees in CRU pools, is possible due to the mixing of seawater (containing sulfate) and formation water (containing barium). A scale inhibition treatment program, like that performed in CRU pools, will be performed at Narwhal as required. Page 15 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit 20 AAC 25.402(c)(10) Estimated Average and Maximum Iniection Pressures The flowing bottom hole pressure of the pilot injection wells will be maintained within the strength of the K-3 seal. Analysis of available data in the seal interval yielded a fracture gradient as high as 0.85 psi/ft. The pilot project will target an injection gradient of 0.75 psi/ft with an operating maximum at 0.8 psi/ft, but this is subject to change as more information is gathered. The pilot project will operate above the fracture gradient of the Narwhal reservoir sandstone which has demonstrated a fracture gradient of 0.6 psi/ft in the Putu 2A and CD4 -595 well tests. At 4,100' TVDSS the target injection pressure will be 3,075 psi (0.75 psi/ft), with temporary operational deviations up to a maximum of 3,280 psi (0.8 psi/ft). The operating pressure of each injector will be set based on the realized depth of the reservoir. Page 16 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit 20AAC 25402(c)(11) Fracture Information In the CD4 -594 area, the Narwhal reservoir is overlain by a 240 to 310 TVD foot thick, claystone section with thin siltstone beds from the K-3 marker to the top Narwhal reservoir sandstone; part of the Cretaceous Nanushuk Group, here referred to as the K- 3 Seal. The underlying confining zone beneath the Narwhal reservoir consists of 25- 100 feet TVD of shaly slope mudstones and shales that thicken to the east/southeast. The calculated hydraulic fracture gradient for the K-3 Seal is based on the available leakoff tests (LOTS) and formation integrity tests in the immediate area that include two LOT's within the seal interval. The plot below in Figure 6 shows the resulting estimate for the initiation pressure for hydraulic fracture of the K-3 claystone seal in True Vertical Depth below sea level and pore pressure (red line). Also shown is the pore pressure of the Narwhal reservoir sandstone (grey) and the planned range of injection pressures for the Narwhal pilot injection project. Example gradients are shown at 0.75 psi/ft (green), 0.78 psi/ft (black), and 0.8 psi/ft (red). Figure 6: Fracture Gradient of Narwhal Upper Confining Layer -3,600 -3,700 -3,800 -3,900 -4,000 ,F -4,100 0 Z_ -4,200 L m -4,300 0 -4,400 -4,500 -4,600 -4,700 -4,800 Narwhal Shale Seal, K-3 ConocoPhillips, June 2019 Pressure (psig] 0 0 0 0 0 0 0 0 0 0 0 r N N N N th M M l') O —Narwhal Sand —Maximum Injection Pressure (0.8 psi/ft) LOT K-3 —Target Injection Pressure (0.75 psi/ft) —0.78 psifft Page 17 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit 20 AAC 25.402(c)(12) Quality of Formation Water No water samples are available from the area of the pilot project. The closest analog water sample was produced from the Stony Hill 1 well on the southern end of the Narwhal trend. The salinity of this water was found to be about 16,000 ppm. Page 18 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit 20 AAC 25.402(c)(13) Aquifer Exemption Reference In the original Alpine Pool application, CPAI demonstrated there are no freshwater aquifers in the Colville River Unit. In finding number 18 of CO 443, the Commission stated: "Calculated water salinity ranges from 15,000 to 18,000 milligrams per liter (mg/1) total dissolved solids (TDS) throughout the Cretaceous and older stratigraphic section in the Colville Delta area. Water samples collected from drill stem and production testing of several wells in the Colville Delta area yielded 18,500 to 24,000 mg/l TDS." In conclusion number 5 of CO 443, the Commission stated: 'There are no freshwater aquifers in the Colville River Unit". This prior finding and conclusion remains valid. None of the subsequent oil pools and area injection orders in the Colville River Unit have found any freshwater aquifers to exist within the Colville River Unit area. Significantly, the Qannik Area Injection Order covers the area of the proposed Narwhal pilot injection program, and in that area injection order there was a finding of no freshwater aquifers. See Area Injection Order 35, Finding 14 which provides: According to the findings and conclusions of Area Injection Orders 18, 18A, and 1813, there are no underground sources of drinking water beneath the permafrost in the Colville River Unit area. Examination of well log data from exploratory wells in and near the proposed Qannik development confirms that there are no aquifers within the affected area that could serve as underground sources of drinking water. Page 19 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit 20 AAC 25.4O2(c)(14) Incremental Hydrocarbon Recovery A full characterization of the in-place fluids across the Narwhal trend is not currently available. Data gathered from exploration wells shows a reservoir which is slightly undersaturated, by as little as 200-300 psi, and an initial pressure of —1,920 psi. This does not leave much driving force for primary depletion. The expected recovery without injection support is <5%. Reservoir modeling and analog data predict a recovery factor upwards of —30% under waterflood. The Narwhal pilot injection project calls for two injection wells offset of the existing producer well CD4 -595. These offset injection wells will allow us to test communication across a production pattern and help ascertain if the expected recovery benefit of injection is feasible. Page 20 ConocoPhillips Alaska, Inc. Application to the AOGCC for Approval of Pilot Water Injection into the Narwhal Reservoir Colville River Unit 20 AAC 25.402(c)(15) Mechanical Condition of Wells Within '/4 Mile of Proposed Area There are no wells which penetrate the Narwhal interval within '% mile of proposed injection operations. The nearest well will be Narwhal producer CD4 -595: the intended recipient of pressure support from proposed injection operations. Figure 2 shows the proposed injection wells with a '% mile radius plotted around the injection wellbore. Proposed wells will be drilled in accordance with applicable AOGCC drilling regulations. Page 21 ConocoPhillips Alaska, Inc.