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Home My WebLink About2008 Oooguruk Unitc PIONEER NATURAL RESOURCES ALASKA March 31, 2009 Commissioner Daniel Seamount Alaska Oil and Gas Conservation Commission 333 W. 7th Ave., Suite 100 Anchorage, AK 99501 MAR 3 1 2009 Alaska Oil & Gas Cons. Commission Anchorage Annual Reservoir Surveillance Reports Oooguruk-Kuparuk and Oooguruk-Nuigsut Oil Pools — Oooguruk Unit Dear Commissioner Seamount: The Alaska Oil and Gas Conservation Commission (AOGCC) approved pool rules for the Oooguruk-Kuparuk and Oooguruk-Nuiqsut pools within the Oooguruk Unit as Conservation Orders 596 and 597, respectively. Rule 9 of the orders requires the filing of annual surveillance reports by April 1 of each year, which are attached hereto. Please contact me at 343-2108 or dale.hoffman@pxd.com if you have any questions or require additional information regarding these reports. Sincerely, Dale Hoffman Attachments 700 G STREET, SUITE 600 - ANCHORAGE, ALASKA 99501 - MAIN 907-277-2700 - FAX 907-343-2190 PIONEER NATURAL RESOURCES ALASKA Annual Reservoir Surveillance Report Oooguruk-Nuiqsut Oil Pool Oooguruk Unit April 1, 2009 Table of Contents SUBJECT PAGE 1.0 Progress of the Enhanced Recovery Project..............................................................3 2.0 Results and Analysis of Reservoir Pressure Surveys within the Pool......................3 3.0 Results and Analysis of Production and Injection Log Surveys, Tracer Surveys, Observation Well Surveys and any Other Special Monitoring ........ 3 4.0 Review of Pool Production Allocation Factors and Issues over the Year.................3 5.0 Reservoir Management Summary................................................................................4 Attachments A. Voidage Balance by Month of Produced Fluid and Injected Fluids B. Map of Nuiqsut Well Locations C. Form 10-412 Pressure Report for Nuiqsut D. Nuiqsut Reservoir Pressure Map - December 2008 Annual Reservoir Surveillance Report Oooguruk-Nuiqsut Oil Pool Pioneer Natural Resources Alaska, Inc. Oooguruk Development Project 1.0 Progress of the Enhanced Recovery Project During 2008, one production well (N-40) was drilled and brought on-line. Drilling progress was slower than expected due to difficulties in the intermediate -hole sections of several wells. The location of this well is shown on Attachment B. First production for Oooguruk was on June 7, 2008. First production from the Nuiqsut reservoir was on August 12, 2008. Average daily production from that date to the end of the year was 134 BOPD. During 2008, water injection was not commenced in the Nuiqsut oil pool. Additional production and injection wells are planned for drilling in 2009. 2.0 Results and Analysis of Reservoir Pressure Surveys Within the Pool An initial static pressure and PBU (pressure build-up) test was completed on the N-40 well. These pressures are reported in the attached 10-412 pressure form. The PBU test indicated significant formation damage and a limited amount of the lateral section was likely contributing to flow. Based on this information and the low productivity of the well, we plan to fracture -stimulate future Nuiqsut laterals. 3.0 Results and Analysis of Production and Injection Log Surveys, Tracer Surveys, Observation Well Surveys and any Other Special Monitoring No production or injection log surveys or tracer surveys were completed in 2008. Some work of this type may occur during 2009 as more wells are drilled and placed on production and injection. 4.0 Review of Pool Production Allocation Factors and Issues Over the Year Production from the Kuparuk and Nuiqsut pools is commingled at the surface into a common production line. Allocation between the pools is based on ratio of total production for a pool to the total production for the Oooguruk Unit. The pool allocation factors for 2008 are: Kuparuk Pool: 97.6% Nuiqsut Pool: 2.4% Theoretical production for individual wells for both pools is calculated on a daily basis. During 2008 wells were produced with chokes at 100% the vast majority of the time due to the capacity of the production line. Daily theoretical production for a well was calculated using the data from the most current well test and the amount of time a well was on production for a given day: Page 3 of 8 Annual Reservoir Surveillance Report Oooguruk-Nuiqsut Oil Pool Pioneer Natural Resources Alaska, Inc. Oooguruk Development Project Minutes Produced xDailyRate(BOPD)werr,,= TheoreticalDaily Production 1440Minutes day The daily allocation factor for the unit is calculated by dividing the actual total production for the day by the sum of the theoretical daily production for each individual well. Daily allocated production is assigned to each well by multiplying its theoretical daily production by the daily allocation factor. The average daily allocation factor for 2008 was 1.02. 5.0 Reservoir Management Summary The Alaska Oil and Gas Conservation Commission (AOGCC) issued pool rules under Conservation Orders No. 596 and 597 for the Oooguruk-Kuparuk and Oooguruk- Nuiqsut reservoirs, respectively. Subsurface development of the Oooguruk Unit is done with dedicated development wells to the Oooguruk-Nuiqsut and Oooguruk-Kuparuk oil pools with no subsurface commingling. Unitized substances produced from the Oooguruk-Nuiqsut and the Oooguruk-Kuparuk oil pools will be commingled on the surface. Area injection orders authorizing the injection of fluids for enhanced oil recovery in the Oooguruk-Kuparuk and Oooguruk-Nuiqsut reservoirs were issued by the AOGCC as Area Injection Orders No. 33 and 34 for the Oooguruk-Kuparuk and Oooguruk-Nuiqsut reservoirs, respectively. Pioneer has not yet commenced injection in the reservoirs due to lack of available water from KRU Working Interest Owners (WIOs). As of March 2009 there is one producing well in the Nuiqsut oil pool. Initial Nuiqsut production from ODSN-40 has been below expectations due to probable formation damage. In 2009, ODSN-40 and subsequent Nuiqsut producers are scheduled to be hydraulic fracture stimulated. Page 4 of 8 ATTACHMENT A Voidage Balance by Month of Produced Fluids and Injected Fluids 2008 Injected Fluids Total Produced Fluids Cum since Formation Import Injection, Cum, start-up, Gas, MRB Gas, MRB MRB Total Year Cum since 0 0 0 Water, voidage, Cum, start-up, Month Oil, MRP Free Gas, MRB MRB MRB MRB MRB Cum Since Start -Up 0 0 0 0 0 0 0 0 Jan -08 0 0 0 0 0 0 Feb -08 0 0 0 0 0 0 Mar -08 0 0 0 0 0 0 Apr -08 0 0 0 0 0 0 May -08 0 0 0 0 0 0 Jun -08 0 0 0 0 0 0 Jul -08 0 0 0 0 0 0 Aug -08 0 0 0 0 0 0 Sep -08 1 0 0 2 2 2 Oct -08 4 0 0 4 6 6 Nov -08 8 2 0 10 16 16 Dec -08 6 6 1 13 29 29 2008 Totals Injected Fluids Page 5 of 8 Net Injection (Injection - Production) Net Total Year Cum since Formation Import Injection, Cum, start-up, Gas, MRB Gas, MRB MRB MRB MRB 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Page 5 of 8 Net Injection (Injection - Production) Net Year Cum since Injection, Cum, start-up, MRB MRB MRB 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -2 -2 -2 -4 -6 -6 -10 -16 -16 -13 -29 -29 ATTACHMENT B Map of Nuiqsut Well Locations ADL 8956 UKIR; =.9- 14NR7E A ADL355MO m 0 0.5 1 2 Projection Information Alaska State P lane Zone 4 Clarke 1866, NAD 1927 3 ADL380%5 UDIK�Imz- m Miles 4 Page 6 of 8 ADL3719M i T14NR8E Legend r --n Nuiqsut PA Unit Boundary J Lease Boundary Township Boundary Well Status Oil Producer Water Injector ATTACHMENT C Form 10-412 Pressure Report for Nuiqsut STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator: Pioneer Natural Resources Alaska 2. Address: 700 G Street, Suite 600, Anchorage, AK 99501 3. Unit or Lease Name: Ooo uruk 4. Field and Pool: Ooo uruk-Nuiqsut 5. Datum Reference: 6350 6. Oil Gravity: 20 7. Gas Gravity: 0.7 8. Well Name and Number: 9. API Number 50XXXXXXXXXXXX NO DASHES 10. Type 11. AOGCC See Pool Code Instructions 12. Zone 13. Perforated 14. Final Test Intervals Date Top - Bottom TVDSS 15. Shut -In Time, Hours 16. Press. Surv. Type (see instructions for codes) 17. B.H. Temp. 18. Depth Tool TVDSS 19. Final Observed Pressure at Tool Depth 20. Datum TVDSS (input) 21. Pressure Gradient, psi/ft. 22. Pressure at Datum (cal) ODSN-40 50-703-20571-00 O 576150 Nuiqsut 6154-6250 08/14/08 43 SBHP 171 6081 3181 6350 0.40 3288.60 ODSN40 50-703-20571-00 O 576150 Nuiqsut 6154-6250 09/22/08 840 PBU 173 6081 3133 6350 0.40 3240.60 23. All tests reported herein were made in accordance with the applicable rules, regulations and instructions of the Alaska Oil and Gas Conservation Commission. I hereby certify that the foregoing is true and correct to the best of my knowledge. Signature Title Printed Name Date Page 7 of 8 60001(w� , ATTACHMENT D Nuiqsut Reservoir Pressure Map — December 2008 460WOF E 470IXQF F 27 27 3-1 34 01 HA027 / Maska zone 4 (EPSO 26734) Transverse Ker"or Cluk. 1866 spheroid Natural orig.. 1150 00 OC W, 5400 OONJ Page 8 of 8 Pioneer Natural Resources Alaska December 2008 Nuiqsut Reservoir Pressure ;OMOQF I 31 3 7 17 29 460WOF E 470IXQF F 27 27 3-1 34 01 HA027 / Maska zone 4 (EPSO 26734) Transverse Ker"or Cluk. 1866 spheroid Natural orig.. 1150 00 OC W, 5400 OONJ Page 8 of 8 Pioneer Natural Resources Alaska December 2008 Nuiqsut Reservoir Pressure ;OMOQF I PIONEER NATURAL RESOURCES ALASKA Annual Reservoir Surveillance Report Oooguruk-Kuparuk Oil Pool Oooguruk Unit April 1, 2009 Table of Contents SUBJECT PAGE 1.0 Progress of the Enhanced Recovery Project..............................................................3 2.0 Results and Analysis of Reservoir Pressure Surveys within the Pool......................3 3.0 Results and Analysis of Production and Injection Log Surveys, Tracer Surveys, Observation Well Surveys and any Other Special Monitoring...................................3 4.0 Review of Pool Production Allocation Factors and Issues Over the Year ................3 5.0 Reservoir Management Summary................................................................................4 Attachments A. Voidage Balance by Month of Produced Fluid and Injected Fluids B. Map of Kuparuk Well Locations C. Form 10-412 Pressure Report for Kuparuk D. Kuparuk Reservoir Pressure Map — September 2008 Annual Reservoir Surveillance Report Pioneer Natural Resources Alaska, Inc. Oooguruk-Kuparuk Oil Pool Oooguruk Development Project 1.0 Progress of the Enhanced Recovery Project During 2008, two production wells (ODSK-33 and ODSK-41) were drilled with the ODSK-33 well commencing production. The ODSK-41 well was placed on production during January 2009. One injection well (ODSK-38i) was drilled during the year and placed on temporary production prior to a planned conversion to injection in early 2009. The locations of these wells are shown on Attachment B. First production for Oooguruk Unit was on June 7, 2008. Average daily Kuparuk production from that date to the end of the year was 4,024 BOPD. During 2008, water injection was not commenced in the Oooguruk-Kuparuk oil pool. The ODSK-38i is planned for conversion to water injection in 2009. 2.0 Results and Analysis of Reservoir Pressure Surveys within the Pool Initial static pressure data were gathered for ODSK-33 and ODSK-38i prior to initiating production in each well. Additionally, a Pressure Build Up (PBU) test was completed in each well during 2008, the results of which are presented in Attachment 2. The PBU in ODSK-33 indicated that the lateral has significant linear flow characteristics that may be due to non -matrix flow contribution. The PBU for the ODSK-38i indicated the well was drilled in a high quality reservoir section, but may have experienced formation damage. 3.0 Results and Analysis of Production and Injection Log Surveys, Tracer Surveys, Observation Well Surveys and any Other Special Monitoring No production or injection log surveys or tracer surveys were completed in 2008. Some work of this type may occur during 2009 as more wells are drilled and placed on production and injection. 4.0 Review of Pool Production Allocation Factors and Issues Over the Year Production from the Oooguruk-Kuparuk and Oooguruk-Nuiqsut pools is commingled at the surface into a common production line. Allocation between the pools is based on ratio of total production for a pool to the total production for the Oooguruk Unit. The pool allocation factors for 2008 are: Oooguruk-Kuparuk Pool: 97.6% Oooguruk-Nuiqsut Pool: 2.4% Theoretical production for individual wells for both pools is calculated on a daily basis. During 2008 wells were produced with chokes at 100% the most of the time due to the capacity of the production line. Daily theoretical production for a well was calculated using the data from the most current well test and the amount of time a well was on production for a given day: Page 3 of 8 Minutes produced xDailyRate(BOPD)Well,s, = TheoreticalDaily Production 1440 Minutes day The daily allocation factor for the unit is calculated by dividing the actual total production for the day by the sum of the theoretical daily production for each individual well. Daily allocated production is assigned to each well by multiplying its theoretical daily production by the daily allocation factor. The average daily allocation factor for 2008 was 1.02. 5.0 Reservoir Management Summary The Alaska Oil and Gas Conservation Commission (AOGCC) issued pool rules under Conservation Orders No. 596 and 597 for the Oooguruk-Kuparuk and Oooguruk-Nuigsut reservoirs, respectively. Subsurface development of the Oooguruk Unit is done with dedicated development wells to the Oooguruk-Nuiqsut and Oooguruk-Kuparuk oil pools with no subsurface commingling. Unitized substances produced from the Oooguruk-Nuiqsut and the Oooguruk-Kuparuk oil pools will be commingled on the surface. Area injection orders authorizing the injection of fluids for enhanced oil recovery in the Oooguruk-Kuparuk and Oooguruk-Nuiqsut reservoirs were issued by the AOGCC as Area Injection Orders No. 33 and 34 for the Oooguruk-Kuparuk and Oooguruk-Nuigsut reservoirs, respectively. Pioneer has not yet commenced injection in the reservoirs. As of March 2009, there are two producing Kuparuk wells. One additional Kuparuk injector is being prepared for water injection, pending the availability of water. Kuparuk production has exceeded expectations from ODSK-33 and ODSK-41 due to possible non -matrix flow into these wells. Kuparuk injection will commence in 2009 in an attempt to balance voidage and arrest the gas oil ratio (GOR) increase due to decreasing reservoir pressure. Page 4 of 8 ATTACHMENT A Voidage Balance by Month of Produced Fluids and Injected Fluids 2008 Produced Fluids Totals Injected Fluids Total Year Cum since Total Year Cum since start-up, Gas, MRB Gas, MRB Free Gas, Water, voidage, Cum, start-up, Month Oil, MRB MRB MRB MRB MRB MRB ince Start -Up 0 0 0 0 0 0 0 Jan -08 0 0 0 0 0 0 Feb -08 0 0 0 0 0 0 Mar -08 0 0 0 0 0 0 Apr -08 0 0 0 0 0 0 May -08 0 0 0 0 0 0 Jun -08 89 1 3 92 92 92 Jul -08 49 2 0 52 144 144 Aug -08 0 0 0 0 144 144 Sep -08 60 4 2 66 210 210 Oct -08 196 11 8 215 426 426 Nov -08 205 13 0 218 644 644 Dec -08 238 36 5 279 923 923 Totals Injected Fluids Page 5 of 8 Net Injection (Injection - Production) Net Total Year Cum since Formation Import Injection, Cum, start-up, Gas, MRB Gas, MRB MRB MRB MRB 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Page 5 of 8 Net Injection (Injection - Production) Net Year Cum since Injection, Cum, start-up, MRB MRB MRB 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -92 -92 -92 -52 -144 -144 0 -144 -144 -66 -210 -210 -215 -426 -426 -218 -644 -644 -279 -923 -923 ATTACHMENT B Map of Kuparuk Well Locations r3dw.11,10■�� ADL38 9959 ADL389M 4NR7E L4OT#p ADL355038 N W+ E S I Miles 0 0.5 1 2 3 4 Projection Infbrmation Alaska State PI an e Zon e 4 Clarke 1866, NAD 1927 Page 6 of 8 ADL379301 ADL38M4 ADL38M3 T1 4NR8E I 10 Legend Kuparuk PA Unit Boundary Lease Boundary Township Boundary Well Status Oil Producer VVaterinjector ATTACHMENT C Form 10-412 Pressure Report for Kuparuk STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator: Pioneer Natural Resources Alaska 2. Address: 700 G Street, Suite 600, Anchors e, AK 99501 3. Unit or Lease Name: Ooo uruk 4. Field and Pool: Ooo uruk-Kuparuk 5. Datum Reference: 6. Oil Gravity: 6050 25 7. Gas Gravity: 0.7 8. Well Name and 9. API Number 10. Type Number: 50XXXXXXXXXXXX See NO DASHES Instructions 11. AOGCC 12. Zone 13. Perforated 14. Final Test Pool Code Intervals Date Top - Bottom TVDSS 15. Shut -In Time, Hours 16. Press. 17. B.H. Surv. Type Temp. (see instructions for codes) 18. Depth Tool TVDSS 19. Final 20. Datum Observed TVDSS (input) Pressure at Tool Depth 21. Pressure Gradient, psi/ft. 22. Pressure at Datum (cal) ODSK-38i 50-703-20584-00 O 576100 Kuparuk 5957-5985 11/23/08 0.5` SBHP 154 5838 3004 6050 0.53 3116.36 ODSK-38i 50-703-20584-00 O 576100 Kuparuk 5957-5985 1 12/5/08 51 PBU 158 58381 2989 6050 0.39 3071.68 ODSK-33 50-703-20562-00 O 576100 Kuparuk 5998 - 6013 6/6/08 0.5' SBHP 164 5959 3189 6050 0.39 3224.49 ODSK-33 50-703-20562-00 O 576100 Kuparuk 5998-6013 9/15/08 1584 PBU 166 5959 3109 6050 0.39 3144.49 'Pressure recorded for 30 minutes following perforating before well flowed back. 23. All tests reported herein were made in accordance with the applicable rules, regulations and instructions of the Alaska Oil and Gas Conservation Commission. I hereby certify that the foregoing is true and correct to the best of my knowledge. Signature Title Printed Name Date Page 7 of 8 ATTACHMENT D Kuparuk Reservoir Pressure Map — September 2008 Page 8 of 8 44.74POWOF E 47'ODWF E 4AQt104F E Qq WlJF E 645000OF N 60SCIOMF N E i "P � 31 32 -3136 36 s -41 i2 33 604000OF N f 6444444E N tir SK -38i I 3 i 1 September 2008 Kuparuk € a 1:63360 € Reservoir Pressure K €g 35 � 1 3 :12 �a 0 6030400E N 1 � 7 1LICC iFJ C .i 6i 19 20� 21 22 a3 24 �^ 6024Ub;=F. Pioneer Natural Resources Alaska 30 a9 i 2e 2; P6 6si16��i40F N �t?JnQF € 414444E N MILEi Qt50400F E �84446F E '�:�iF E NA027 / Aaske Lone 4 tEPSG 26734) Trrseerse Mercator Clarke 1666 sptwoid Ng%wal origin: (1 SO OO OOW. 340000 N] Page 8 of 8 September 2008 Kuparuk € a 1:63360 € Reservoir Pressure K €g 35 � 1 3 :12 �a 0 Page 8 of 8