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Home My WebLink About2012 Oooguruk UnitPIONEER NATURAL RESOURCES ALASKA Dale Hoffman, CPL Senior Staff Landman Pioneer Natural Resources Alaska. Inc. 700 G Street, Suite 600 Anchorage, AK 99501 (907) 343-2108 • Fax (907) 343-2193 dale.hoffman@pxd.com April 15, 2013 Commissioner Cathy Foerster Alaska Oil and Gas Conservation Commission 333 W. 7th Ave., Suite 100 Anchorage, AK 99501 Annual Reservoir Surveillance Reports — Oooguruk Unit Oooguruk-Kuparuk, Oooguruk-Nuigsut and Oooguruk-Torok Oil Pools Dear Commissioner Foerster: The Alaska Oil and Gas Conservation Commission (AOGCC) approved pool rules for the Oooguruk-Kuparuk, Oooguruk-Nuiqsut and Oooguruk-Torok pools within the Oooguruk Unit as Conservation Orders 596, 597 and 645, respectively. Rule 9 of the orders requires the filing of annual surveillance reports, which are attached hereto. Please let us know if you have any questions or require additional information regarding these reports. Sincerely, Attachments PIONEER NATURAL RESOURCES ALASKA Annual Reservoir Surveillance Report Oooguruk-Nuigsut Oil Pool Oooguruk Field April 15, 2013 Table of Contents SUBIECT 1.0 Progress of the Enhanced Recovery Project..............................................................................1 2.0 Results and Analysis of Reservoir Pressure Surveys Within the Pool..................................1 3.0 Results and Analysis of Production and Injection Log Surveys, Tracer Surveys, Observation Well Surveys and Any Other Special Monitoring ............................................. 2 4.0 Review of Pool Production Allocation Factors and Issues Over the Year ............................ 2 5.0 Reservoir Management Summary.............................................................................................. 2 Attachments A. Voidage Balance by Month of Produced Fluid and Injected Fluids 2012 B. Map of Nuiqsut Well Locations C. Form 10-412 Pressure Report for Nuiqsut D. Nuiqsut Reservoir Pressure Maps - August 2012 Page 1 of 8 1.0 Progress of the Enhanced Recovery Project During 2012, the ODSN-271 injection well was drilled and pre -produced. The producing ODSN-01 was drilled, fracture stimulated and placed on production. The ODSN-25 and ODSN-29 were drilled and completed and are waiting on fracture stimulation treatment as of year-end. The ODSN-23i and ODSN-26i were converted to water injection after a period of pre -production. Within the Kalubik fault block, ODSN-31, ODSN-37 and ODSN-36 continued to produce and ODSN-01 was put on production during 2012. They are supported by water and gas injection in ODSN-32i, ODSN-34i, and ODSN-26i. Within the Colville Delta fault block, ODSN-16, ODSN-17, ODSN-18 continued to produce throughout 2012. They are supported by water and gas injection in ODSN-23i and ODSN-15i. As part of planned under -saturated water -alternating -gas (USWAG) process, gas injection has continued in ODSN-15i throughout most of the year. Within the Ivik fault block, ODSN-27i pre -production was initiated. The ODSN-29 producer is waiting on fracture stimulation as of year-end. No injection has begun in this fault block. The locations of all Nuiqsut wells are shown on Attachment B. Average daily Nuiqsut production during 2012 was 4,322 BOPD. Cumulative oil production from the Oooguruk-Nuiqsut Oil Pool during 2012 was 1,577 MBO and is 4,137 MBO since field start-up. During 2012, water and gas injection continued in the Oooguruk-Nuiqsut oil pool. Offset producing wells have seen gas/oil ration (GOR) stabilization and arrest of production decline. Average daily Nuiqsut injection during 2012 was 4,167 BWPD and 2,722 Mscfd. Cumulative water injection in the Oooguruk-Nuiqsut Oil Pool during 2012 was 1521 MBW and 3,037 MBW since the start of the project. Cumulative gas injection in the Oooguruk-Nuiqsut Oil Pool during 2012 was 993 MMscf and 2,095 MMscf since the start of the project. 2.0 Results and Analysis of Reservoir Pressure Surveys Within the Pool An initial static pressure test was completed on the three new Nuiqsut wells, ODSN-01, ODSN-25 and ODSN-27i, in 2012. The details of the pressure tests are on Attachment C. Page 2 of 8 3.0 Results and Analysis of Production and Injection Log Surveys, Tracer Surveys, Observation Well Surveys and any Other Special Monitoring In ODSN-01 Nuiqsut well surveillance equipment was placed in the production liner to assess oil and water production conformance along the lateral via target fluid tracers which were monitored and analyzed by collecting surface fluid samples over time. Initial data indicate adequate tracer concentrations are being returned in the produced fluids. A quantitative analysis is in progress. 4.0 Review of Pool Production Allocation Factors and Issues Over the Year Production from the Oooguruk-Nuiqsut, Oooguruk-Kuparuk and Oooguruk-Torok 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 2012 are: Oooguruk-Nuiqsut Pool: 62.1% Oooguruk-Kuparuk Pool: 30.1% Oooguruk-Torok Pool: 7.8% Theoretical production for individual wells for both pools is calculated on a daily basis. During 2012 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: MinuteSproduced 1440Minutes day xDailyRate(BOPD),,..,,,,es,=TheoreticalDailyProduction 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 2012 was 0.98. 5.0 Reservoir Management Summary The Alaska Oil and Gas Conservation Commission (AOGCC) issued pool rules under Conservation Orders No. 645, 596 and 597 for the Oooguruk-Torok, Oooguruk-Kuparuk and Oooguruk-Nuiqsut reservoirs, respectively. While there is no subsurface commingling, unitized substances produced from the three oil pools are commingled on the surface. Page 3 of 8 .;+ Area injection orders authorizing the injection of fluids for enhanced oil recovery in the Oooguruk-Kuparuk and Oooguruk-Nuigsut reservoirs were issued by the AOGCC as Area Injection Orders No. 33 and 34, respectively. Pioneer commenced injection into both reservoirs in 2009. As of January 2013 there are 10 producers and five injection wells, one of which is currently pre -producing in the Oooguruk-Nuiqsut oil pool. Eight of those are active production wells and five are active injection wells. The ODSN-23i and ODSN-26i was converted to injection in 2012. As of year-end 2012, two of the three active fault blocks have injection operations. The focus in 2013 will be to commence injection into the third fault block and to maintain voidage replacement in all three fault blocks. Page 4 of 8 ATTACHMENT A Voidage Balance by Month of Produced Fluids and Injected Fluids 2012 Produced Fluids 2012 Totals 1,776 1,416 15 3,207 Injected Fluids Net Year since Cum Cum, start-up, MRB Cum. Total Year since Total Oil, Free Gas, Water, Voidage, Cum, start-up, Month MRP MRB MRB MRB MRB MRB Cum Since Start -Up thru 2011» Cum Since Start -Up thru 2011 >? -203 -630 3,887 Jan -12 116 83 1 201 201 4,087 Feb -12 102 50 1 153 354 4,240 Mar -12 108 52 1 161 514 4,401 Apr -12 115 49 2 165 680 4,566 May -12 208 153 3 365 1,044 4,931 Jun -12 180 200 2 382 1,427 5,313 Jul -12 153 165 2 319 1,746 5,633 Aug -12 162 120 3 286 2,031 5,918 Sep -12 1.64 126 1 290 2,322 6,208 Oct -12 165 158 0 323 2,644 6,531 Nov -12 147 140 0 287 2,931 6,818 Dec -12 157 119 0 276 3,207 7,094 2012 Totals 1,776 1,416 15 3,207 Page 5 of 8 (Injection - Production) Injected Fluids Net Year since Injection, Cum, start-up, MRB Cum. Formation Import Total Year since Gas, Gas, Water. Injection, Cum, start-up, MRB MRB MRB MRB MRB MRB Cum Since Start -Up thru 2011 >? -203 -630 2,330 68 0 71 139 139 2,469 48 0 56 104 243 2,572 40 0 52 92 334 2,664 49 0 55 104 439 2,768 74 0 104 179 617 2,947 76 0 104 180 797 3,126 55 0 179 234 1,030 3,360 69 0 137 207 1,237 3,567 68 0 168 236 1,473 3,803 83 0 197 279 1,753 4,082 56 0 194 250 2,003 4,332 48 0 205 253 2,255 4,585 734 0 1,521 2,255 Page 5 of 8 (Injection - Production) -952 Cum Net Year since Injection, Cum, start-up, MRB MRB MRB -1,557 -61 -61 -1,618 -50 -111 -1,668 -69 -180 -1,737 -61 -241 -1,798 -186 -427 -1,984 -203 -630 -2,187 -86 -715 -2,273 -79 -794 -2,352 -54 -849 -2,406 -43 -892 -2,449 -37 -928 -2,485 -23 -952 -2,509 -952 ATTACHMENT B Page 6 of 8 ATTACHMENT C Form 10-412 Pressure Rennrt for Nuinc»t STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator: Roneer Natural Resources Alaska 2. Address: 700 G Street, Suite 600, Anchorage, AK 99501 3. Unit or Lease Name: OoogurukOooguruk-Nuiqsut 4. Field and Pool: 5. Datum Reference: 6350 6. Oil Gravity: 7. Gas Gravity: 20 0.7 8. Well Name and Number: 9. AR Number 50� NO DASHES 10. Type See Instructions 11. AOGCC Fool Code 12. Zone 13. Perforated Intervals Top - Bottom NDSS 14. Final Test Date 15. Shut -In Time, Hours 16. Press. 17. B.H. Surv. Type Temp. (see instructions for codes) 18. Depth 19. Final Tool TV DSS Observed Pressure at Tool Depth 20. Datum 21. Pressure TV DSS (input) Gradient, psVft. 22. Pressure at Datum (cal) ODSN-01 50703206480000 O 576150 Nuiqsut 6134-6217 4/03/12 INITIAL SBHP 161 6031 3050 6350 0.53 3,219 ODSN-27 50703206550000 O 1 576150 Nuiqsut 6375-6237 8/15/2012 1 INITIAL SBHP 153 5875.56 3044.4 6350 0.52 3.291 ODSN-25 50703206560000 O 576150 Nuiqsut 6080-6039 11/8/2012 INITIAL SBHP 151 5,726 2832 6350 0.52 3.156 23. All tests reported herein w ere made in accordance with the applicable rules, regulations and instructions of the Alaska Oil and Gas Conservation ComnVssion. I hereby certify that the foregoing is true and correct to the best of my know ledge. Signature Title Printed Name Date Page 7 of 8 ATTACHMENT D Nuiqsut Reservoir Pressure Map — August 2012 Page 8 of 8 PIONEER NATURAL RESOURCES ALASKA Annual Reservoir Surveillance Report Oooguruk-Kuparuk Oil Pool Oooguruk Field April 15, 2013 Table of Contents SUBJECT PAGE 1.0 Progress of the Enhanced Recovery Project.............................................................................. 1 2.0 Results and Analysis of Reservoir Pressure Surveys Within the Pool .................................. 1 3.0 Results and Analysis of Production and Injection Log Surveys, Tracer Surveys, Observation Well Surveys and Any Other Special Monitoring ............................................. 1 4.0 Review of Pool Production Allocation Factors and Issues Over the Year ............................ 1 5.0 Reservoir Management Summary............................................................................................. 2 Attachments A. Voidage Balance by Month of Produced Fluid and Injected Fluids 2012 B. Map of Kuparuk Well Locations C. Form 10-412 Pressure Report for Kuparuk D. Kuparuk Reservoir Pressure Map - August 2012 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 2012, there were no new drilling activities within the Kuparuk Pool. There are currently five active wells (three producers and two injectors) and three inactive wells. The inactive ODSK-13 within the Ivik fault block is shut-in pending rig a rig workover. The ODSN-40 within the Colville Delta fault block is shut-in due to inconsistent injection. The ODSK-42Ai is shut-in after short period of injection since it could not maintain consistent injection at the water injection header pressure post gel treatment in 2010. The ODSK-14, ODSK-33 and ODSK-41 wells continued to produce throughout 2012. Water breakthrough occurred in ODSK-35i prior to conversion to injection. The ODSK-38i well continued on injection throughout the year and ODSK-35i had first full year of injection. Both injectors are performing as expected in replacing off take as of December 2012. The locations of these wells are shown on Attachment B. Average daily Kuparuk production for 2012 was 2,070 BOPD. Cumulative oil production from the Oooguruk-Kuparuk Oil Pool during 2012 was 755 MBO and 7,674 MBO since field start-up. No additional drilling for the pool is planned for 2013. Average daily Kuparuk water injection for 2012 was 9,620 BWPD. Cumulative water injection in the Oooguruk-Kuparuk Oil Pool during 2012 was 3,511 MBW and 11,677 MBW since the start of the project. 2.0 Results and Analysis of Reservoir Pressure Surveys within the Pool Pressure build up tests were completed in ODSK-35i, ODSK-38i and ODSK-42Ai during 2012, the results of which are presented in Attachment C. The pressure in ODSK-42Ai indicates pressure drawdown in this area of the reservoir as the well has been shut in from injection since the gel squeeze to shut off thief zones. 3.0 Results and Analysis of Production and Injection Log Surveys, Tracer Surveys, Observation Well Surveys and any Other Special Monitoring A chemical tracer program was initiated in May 2012. Tracers were injected into ODSK-35i and ODSK-38i. By year end, 2012 tracer concentrations have been observed in ODSK-33 from ODSK-35i. No other tracers have been observed in producers. Surveillance will continue into 2013. 4.0 Review of Pool Production Allocation Factors and Issues Over the Year Production from the Oooguruk-Nuigsut, Oooguruk-Kuparuk and Oooguruk-Torok 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 2012 are: Page 1 of 7 Oooguruk-Nuiqsut Pool: 62.1% Oooguruk-Kuparuk Pool: 30.1% Oooguruk-Torok Pool: 7.8% Theoretical production for individual wells for both pools is calculated on a daily basis. During 2012 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: Minutes produced xDailyRate(BOPD),,,,,s, = TheoreticalDailyPr oduction 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 2012 was 0.98. 5.0 Reservoir Management Summary The Alaska Oil and Gas Conservation Commission (AOGCC) issued pool rules under Conservation Orders No. 645, 596 and 597 for the Oooguruk-Torok, Oooguruk-Kuparuk and Oooguruk-Nuigsut reservoirs, respectively. While there is no subsurface commingling, unitized substances produced from the Oooguruk-Torok, Oooguruk-Nuigsut and the Oooguruk-Kuparuk oil pools are commingled on the surface. Area injection orders authorizing the injection of fluids for enhanced oil recovery in the Oooguruk-Kuparuk and Oooguruk-Nuigsut reservoirs were issued by the AOGCC as Area Injection Orders No. 33 and 34, respectively. Pioneer commenced injection into both reservoirs in 2009. Kuparuk production has exceeded expectations from ODSK-33, ODSK-41 and ODSK-14 due to possible non -matrix flow into these wells. Kuparuk injection commenced in 2009, into ODSK- 38i with excellent injection rates. Kuparuk injection commenced in 2011 into ODSK-35i and ODSN-40 (converted from Nuigsut completion to Kuparuk completion). Injection rate into ODSK-35i is very good, with rate into ODSN-40 good, considering the pay thickness at that location. The better than expected water injection rate has arrested the gas/ oil ratio (GOR) increase in the ODSK-33 and has stabilized the flowing bottomhole pressure. The ODSK-33 experienced water breakthrough in August 2010. This was approximately the timing that reservoir simulation had suggested for breakthrough. The water cut increased relatively rapidly and reached approximately 91 % by the end of, 2012. ODSK-41 is much further away from injection and has not yet seen a dramatic response to water injection in ODSK-38i. Injection logging confirmed that water injection in the K -38i well was limited to the perforated Kuparuk section. Injection was initiated in ODSK-42Ai in January 2010. Unfortunately, this resulted in a very early water breakthrough event in the ODSK-41 well. The ODSK-42Ai was shut in and the water injection rate quickly decreased from the producing well. It is possible a fracture system Page 2 of 7 connects the two wells together. This was not unexpected based on the high productivity from the ODSK-41 wells originally. In 2010, ODSK-42i was squeezed with a combination of gels to attempt to seal up the fracture connection. Those are polyacrylamide gels that set up to a "ringing gel" at reservoir conditions. The ODSK-42Ai was placed back on injection and was injecting just under 1,000 BWPD for about 30 days. Then, after an upset event from the Kuparuk River Unit Seawater Treatment Plant, continuous injection could not be sustained. Some solid materials may have caused some near wellbore plugging. ODSK-42Ai is currently shut-in. ODSK-35 and ODSK-14 were both drilled during 2010. The total thickness of the Kuparuk was less than expected in these wells to the north and northwest of the ODSK-33. The wells had very high initial productivity from good reservoir quality, but have declined due to the thinner nature of the reservoir. ODSK-35i was converted to injection in late, 2011. With ODSK-35i and ODSK-38i both injecting, reservoir voidage replacement is maintained, pressure in the reservoir is increasing, and GORs are decreasing. ODSK-13 was drilled in late 2011 as horizontal producer completed to test the thickness and productivity of the Ivik fault block. It is awaiting a rig work -over. ODSN-40, a Nuiqsut horizontal completion, had rig workover in 2011 to convert to dedicated Kuparuk injection. This well was completed and injected into the Kuparuk formation within the Colville -Delta fault block in 2012 an attempt to aid with pressure support and oil recovery into the ODSK-33 producer within the Kalubik fault block. It is shut-in due to low injectivity. Page 3 of 7 ATTACHMENT A Voidage Balance by Month of Produced Fluids and Injected Fluids 2012 Produced Fluids 2012 Totals 944 322 2,122 3,388 Injected Fluids Net Year since Cum Cum, start-up, MRB Cum. Total Year since Total Oil, Free Gas, Water, Voidage, Cum, start-up, Month MRP MRB MRB MRB MRB MRB Cum Since Start -Up thru 2011» -2 78 8,166 13,956 Jan -12 97 50 168 315 315 14,271 Feb -12 84 25 164 272 587 14,543 Mar -12 92 37 185 314 901 14,857 Apr -12 86 40 175 301 1,202 15,158 May -12 83 18 172 273 1,474 15,430 Jun -12 83 24 167 273 1,748 15,704 Jul -12 79 16 169 263 2,011 15,967 Aug -12 83 1 187 271 2,282 16,238 Sep -12 73 20 165 259 2,541 16,497 Oct -12 76 45 188 309 2,850 16,806 Nov -12 64 35 185 284 3,134 17,090 Dec -12 46 11 198 255 3,388 17,344 2012 Totals 944 322 2,122 3,388 Page 4 of 7 (Injection - Production) Injected Fluids Net Year since Injection, Cum, start-up, MRB Cum. Formation Import Total Year since Gas, Gas, Water. Injection, Cum, start-up, MRB MRB MRB MRB MRB MRB Cum Since Start -Up thru 2011» -2 78 8,166 0 0 325 325 325 8,491 0 0 322 322 648 8,814 0 0 331 331 978 9,144 0 0 267 267 1,245 9,411 0 0 309 309 1,554 4,720 0 0 271 271 1,826 9,992 0 0 283 283 2,108 10,274 0 0 166 166 2,274 10,440 0 0 172 172 2,446 10,612 0 0 365 365 2,811 10,977 0 0 353 353 3,164 11,330 0 0 348 348 3,512 11,678 0 0 3,512 3,512 Page 4 of 7 (Injection - Production) 123 Cum Net Year since Injection, Cum, start-up, MRB MRB MRB -5,790 11 11 -5,779 50 60 -5,730 17 77 -5,713 -34 44 -5,746 36 80 -5,710 -2 78 -5,712 20 97 -5,693 -106 -8 -5,798 -87 -95 -5,885 56 -39 -5,829 69 30 -5,760 93 123 -5,667 123 ATTACHMENT B Map of Kuparuk Well Locations Page 5 of 7 ATTACHMENT C Form 10-412 Pressure Report for Kuparuk Page 6 of 7 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator: Roneer Natural Resources Alaska 2. Address: 700 G Street, Suite 600, Anchorage, AK 99501 3. Unit or Lease Name: OoogurukOooguruk-Kuparuk 4. Field and Fool: 5. Datum Reference: 6050 6. Oil Gravity: 25 7. Gas Gravity: 0.7 8. Well Name and Nurrber. 9. AR Number 50XXXXXXXXXXXX NO DASHES 10. Type 11. AOGCC See Fool Code Instructions 12. Zane 13. Perforated 14. Final Test Intervals Date Top - Bottom TVDSS 15. Shut -In 16. Press. 17. B.H. Time, Hours Surv. Type Temp. (see instructions for codes) 18. Depth Tool TV DSS 19. Final Observed Pressure at Tool Depth 20. Datum TV DSS (input) 21. Pressure Gradient, ps Vft. 22. Pressure at Datum(cal) ODSK-35 50703205600100 WI 576100 Kuparuk 6085-6126 8/5/10 209 PBU 161 5849 3643 6050 0.44 3,731 ODSK-38 50703205840000 WI 576100 Kuparuk 6013-6041 8/5/10 209 PBU 120 5840 1 3132 6050 0.44 3,224 ODSK-42 5070206050100 WI 576100 Kuparuk 5735-5746 9/9/10 209 PBU 144 5681 2500 6050 0.44 2,662 'Recorded reservoir pressure prior to flow ing back well 23. Alt tests reported herein were made in accordance 1 hereby certify that the foregoing is true and Signature Printed Name w ith the applicable rules, regulations and instructions of the Alaska Oil and Gas conservation Conmssion. correct to the best of my know ledge. Title Date Page 6 of 7 ATTACHMENT D Kuparuk Reservoir Pressure Map — August 2012 PIONEER NATURAL RESOURCES ALASKA Annual Reservoir Surveillance Report Oooguruk-Torok Oil Pool Oooguruk Field April 15, 2013 Table of Contents SUBJECT PAGE 1.0 Progress of the Enhanced Recovery Project.............................................................................. 1 2.0 Results and Analysis of Reservoir Pressure Surveys Within the Pool .................................. 1 3.0 Results and Analysis of Production and Injection Log Surveys, Tracer Surveys, Observation Well Surveys and Any Other Special Monitoring ............................................. 2 4.0 Review of Pool Production Allocation Factors and Issues Over the Year ............................ 2 5.0 Reservoir Management Summary............................................................................................. 3 Attachments A. Voidage Balance by Month of Produced and Injected Fluids 2012 B. Map of Torok Well Locations C. Form 10-412 Pressure Report for Torok D. Torok Reservoir Pressure Map - August 2012 E. ODST-46 Pressure Monitoring and Daily Injection Volumes (AIO 37, Rule 9) Annual Reservoir Surveillance Report Pioneer Natural Resources Alaska, Inc. Oooguruk-Torok Oil Pool Oooguruk Development Project 1.0 Progress of the Enhanced Recovery Project During 2012 Oooguruk-Torok Oil Pool (OTOP) development progressed as planned. The Alaska Oil and Gas Conservation Commission (AOGCC) issued Area Injection Order 37 (AIO 37) authorizing injection of fluids into the OTOP for the purposes of pressure maintenance and enhanced oil recovery. Injection operations were initiated on December 5, 2012 in ODST-46. Production continues from horizontal fracture stimulated producers ODST-45A and ODST-39. A workover was completed on ODST-45A in October to replace a failed ESP. A fourth Oooguruk Drill Site (ODS) development well, ODST-47, was drilled and completed in 2012 and is awaiting hydraulic fracture stimulation during the 2013 winter ice season. Appraisal drilling, logging and testing were conducted in the Sikumi 1 and Nuna 1 wells during 2012. The Nuna 1 well, which was drilled from the planned onshore drillsite location, included a pilot hole and a horizontal well which was completed, fracture stimulated and tested in the 2012 winter season. Log data was acquired in the Sikumi 1 well across the Torok interval. The locations of the existing OTOP wells are shown on Attachment B. Seawater injection was initiated in ODST-46 and monitored pursuant to the rules of AIO 37. Specifically, the well demonstrated mechanical integrity and pressures, injection and annuli, are monitored continuously. During the period of injection, well head injection pressures averaged 1,422 psi, far below the maximum pressure of 2,800 psi, and water rates averaged 2,709 bpd. The early performance data indicates good injectivity and confinement to the OTOP. Attachment E, in compliance with AIO 37, Rule 9, characterizes the well injection for this period. Excluding confidential Nuna 1 test production average daily Torok production for 2012 was 537 BOPD. Cumulative oil production from the OTOP during 2012 was 196 MBO and is 501 MBO since field start-up thru 2012. Average daily Torok water injection for 2012 was 202 BWPD. Cumulative water injection in the OTOP during 2012 was 73 MBW and 73 MBW since the start of the project. Attachment A details the 2012 monthly voidage for the OTOP. 2.0 Results and Analysis of Reservoir Pressure Surveys within the Pool Pressure surveys were conducted in four OTOP wells during 2012. The initial pressures measured in wells ODST-39 and Nuna 1 measured 2,210 psi and 2,259 psi (-5,000 TVDSS datum), respectively. These measurement are consistent with the OTOP original reservoir pressure of 2,250 psi (-5,000 TVDSS) and proximity to ongoing production. Additionally, extended pressure build ups in ODST-45A and ODST-46 of 1,834 psi and 1,822 psi (-5,000 TVDSS), respectively, suggest similar levels of depletion and continuity in this initial development area. Attachment C details the surveys and relevant data. Page 1 of 6 3.0 Results and Analysis of Production and Injection Log Surveys, Tracer Surveys, Observation Well Surveys and any Other Special Monitoring Resman surveillance equipment placed in the production liner of ODST-46 to assess oil and water production conformance along the lateral via target fluid tracers indicate limited oil production from the toe of the well with the majority of the oil production from the heel to the mid -point of the lateral. Data collected in both the Sikumi 1 well and Nuna 1 well operations have been very valuable in characterizing the OTOP and targeting additional development locations. The specific data from these wells remain confidential but have been supplied to the AOGCC. 4.0 Review of Pool Production Allocation Factors and Issues Over the Year Production from the Oooguruk-Nuigsut, Oooguruk-Kuparuk and Oooguruk-Torok 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 2012 are: Oooguruk-Nuiqsut Pool: 62.1% Oooguruk-Kuparuk Pool: 30.1% Oooguruk-Torok Pool: 7.8% Theoretical production for individual wells for all pools is calculated on a daily basis. During 2012 wells were produced with chokes at 100% most of the time. 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: Minutesproduced xDailyRate(BOPD)weit�esr = 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 2012 was 0.98. Page 2 of 8 5.0 Reservoir Management Summary The AOGCC issued pool rules under Conservation Orders No. 645, 596 and 597 for the Oooguruk-Torok, Oooguruk-Kuparuk and Oooguruk-Nuigsut reservoirs, respectively. While there is no subsurface commingling, unitized substances produced from the three oil pools are commingled on the surface. There are two producing and one Torok injection wells. An additional producer, ODST-47 was drilled, completed and awaiting fracture stimulation. Page 3 of 8 ATTACHMENT A Voidage Balance by Month of Produced and Injected Fluids 2012 Produced Fluids 2012 Totals 216 411 134 761 Fluids Cum Net Cum. Cum import Cum, Total Year Total Year since Water. Oil, Free Gas, Water, Voidage, Cum, start-up, Month MRP MRB MRB MRB MRB MRB Cum Since Start -Up thru 2011» 0 0 0 1,028 Jan -12 11 37 3 52 52 1,080 Feb -12 14 58 7 79 131 1,159 Mar -12 13 41 6 60 192 1,220 Apr -12 23 53 11 87 278 1,306 May -12 35 62 13 110 388 1,416 Jun -12 22 51 13 86 474 1,502 Jul -12 18 39 13 69 543 1,571 Aug -12 15 25 14 54 597 1,625 Sep -12 14 9 10 33 630 1,658 Oct -12 12 5 11 28 658 1,686 Nov -12 15 11 15 42 700 1,728 Dec -12 22 19 20 62 761 1,789 2012 Totals 216 411 134 761 Fluids 0 0 74 74 Page 4 of 8 (Injection - Production) Cum Net Cum. Formation import Cum, Total Year since Gas, Gas, Water. Injection, Cum, start-up, MRB MRB MRB MRB MRB MRB Cum Since Start -Up thru 2011» -87 -278 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 0 0 0 0 0 74 74 74 74 0 0 74 74 Page 4 of 8 (Injection - Production) Cum Net Year since Injection, Cum, start-up, MRB MRB MRB -1,028 -52 -52 -1,080 -79 -131 -1,159 -60 -192 -1,220 -87 -278 -1,306 -110 -388 -1,416 -86 -474 -1,502 -69 -543 -1,571 -54 -597 -1,625 -33 -630 -1,658 -28 -658 -1,686 -42 -700 -1,728 12 -688 -1,716 -688 ATTACHMENT B Map of Torok Well Locations ADL389956 I ADL389955 ADL379301 ADL389960 I ADL389959 I ADL389958 OD ADL355037 ADL355039 0 N W+E S 0 0.5 1 2 ADL389954 IADL389953 ADL389950 ADL389952 IADL389951 7 ADL355038 Legend Torok PA Q i Miles Unit Boundary 4 Lease Boundary Township Boundary Page 5 of 8 ATTACHMENT C 2012 Form 10-412 Pressure Report for Torok (Revised) 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: Oooguruk 4. Field and Pool: Oooguruk-Torok Undefined 5. Datum Reference: 5000 6. Oil Gravity: 24 7. Gas Gravity: 0.7 8, Well Name and Number: 9. API Number 50XXXXXxxxxxxx NO DASHES 10. Type 11. AOGCC 12. Zone See Pool Code Instructions 13. 14. Final Test Perforated Date Intervals Top - Bottom TVDSS 15. Shut -In 16. Press. Time, Surv. Type Hours (see instructions for codes 17. B.H. Temp. 18. Depth 19. Final Tool TVDSS Observed Pressure at Tool Depth 20. Datum TVDSS (input) 21. Pressure 22. Pressure at Gradient, psilft. Datum (cal) ODST-39 5070320570000 O 576175 Torok 4957-5007 413112 INITIAL OTHER 0 442 5000 0.35 2,210 BASED ON A SIWHPS Nuna-1 50103206450000 0 576175 Torok 4950-5263 414112 INITIAL SBHP 123 4780 2162 5000 0.44 2,259 'HYDRAULICALLY FRACTURE STIMULATED HORIZONTAL WELL; TOP AND BOTTOM FROM PILOT HOLE. ODST-46 50703206310000 0 576175 Torok 4911-5005 3124111 Initial SBHP' 124 4682 2242 5000 1 0.43 2,397 ODST-46 50703206310000 0 576175 Torok 4911-5005 4120111 Initial PBU 120 4682 2141 5000 0.35 2,252 ODST-45A 50703205770100 0 576175 Torok 4944-5117 W23111 141 PBU 131 4815 1500 5000 0.35 1,565 ODST-46 50703206310000 0 576175 Torok 4911-5005 812301 135 PBU 121 4682 1447 5000 0.35 1,558 ODST-45A 50703205770100 O 576175 Torok 1 4944-5117 1016112 3747 1 PBU 125 4781 1757 1 5000 0.35 1834 DOST -46 50703206310000 O 576175 Torok 4911-5005 11126112 4645 PBU 114 4435 1624 5000 0.35 1,822 'Recorded reservoir pressure prior to flowing back well 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 Staff Operations Engineer Printed Name 10 Theresa Williams Date April 12, 2013 Page 6 of 8 ATTACHMENT D Torok Reservoir Pressure Map — A Page 7 of 8 ATTACHMENT E ODST-46 Press Monitoring and Daily Injection Volume (AIO 37, Rule 9) Page 8 of 8 ODST-46 Pressure Monitoring and Daily Injection Volumes (AIO 37 Rule 9) Dec -12 Wellhead injection pressure, psig Inner annulus pressure, psig Outer annulus pressure, psig Injection DAY MIN MAX AVERAGE MIN MAX AVERAGE MIN MAX AVERAGE bbls 5 392 1863 884 608 877 633 0 133 10 153 6 719 1427 933 1 842 758 134 271 241 1913 7 781 921 818 733 751 745 271 298 292 2351 8 865 924 899 1 1866 766 283 440 302 2245 9 916 1038 996 0 751 716 284 318 293 2339 10 1021 1120 1078 665 720 678 262 297 269 2427 11 1052 1100 1079 658 682 673 258 277 269 2453 12 1076 1096 1085 678 695 691 275 287 284 2439 13 1078 1099 1088 691 713 700 284 300 291 2413 14 113 1231 967 607 718 684 110 303 261 1899 15 1102 1238 1169 678 716 692 274 296 283 2316 16 1167 1365 1252 671 720 690 269 304 281 2342 17 1260 1361 1320 698 719 709 283 297 291 2537 18 1278 1338 1319 693 711 703 280 292 287 2521 19 1284 1335 1316 688 703 694 277 288 281 2515 20 1330 1449 1407 653 693 680 249 280 269 2646 21 1442 1674 1525 642 685 657 242 260 249 3070 22 1668 1783 1733 683 712 703 259 275 270 3464 23 1764 1864 1827 678 713 690 253 271 259 3463 24 1833 1867 1853 677 696 685 249 261 254 3440 25 1860 1888 1874 692 700 697 259 263 261 3440 26 1885 1958 1926 692 710 701 257 267 262 3440 27 1907 1975 1940 575 705 665 185 263 239 3440 28 1918 2022 1976 678 738 702 248 280 260 3440 29 2017 2040 2025 679 734 689 243 278 250 3440 30 2038 2057 2048 675 581 678 240 244 242 3440 31 2057 2072 2064 673 681 679 239 243 241 3564 December Averages 1422 695 259 2709 Note5: 12/5/12 initiated injection 12/8/12 inner annulus mechanical integrity test (passed) Page 8 of 8