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Home My WebLink About2024 Milne Point Unit Milne Point Unit Waterflood and Reservoir Surveillance Report for Kuparuk River Oil Pool Schrader Bluff Oil Pool Sag River Oil Pool January through December, 2024 Issued: April 4th, 2025 Outline 1. Introduction 2. Kuparuk River Oil Pool a. Project Summary b. Reservoir Voidage Balance Table c. Pressure Data 3. Schrader Bluff Oil Pool a. Project Summary b. Reservoir Voidage Balance Table c. Pressure Data d. Injection Surveys 4. Sag River Oil Pool a. Project Summary b. Reservoir Voidage Balance Table c. Pressure Data 5. Milne Point Pool Allocation Factors 6. Milne Point 2024 Development Review and 2025 Development Plan ANNUAL RESERVOIR SURVEILLANCE REPORTS MILNE POINT UNIT KUPARUK RIVER OIL POOL SCHRADER BLUFF OIL POOL SAG RIVER OIL POOL JANUARY - DECEMBER 2024 Introduction As required by Conservation Order 205 for the Kuparuk River Oil Pool, approved October 4, 1984, Conservation Order 477, approved August 23, 2002 for the Schrader Bluff Oil Pool, Conservation Order 423 for the Sag River Oil Pool, approved May 6, 1998, and Conservation Order 550.007 for all Milne Point Pools, approved January 6, 2009, and Conservation Order 550.006 for all Milne Point Pools, amended February 14, 2015, this report provides a consolidated summary of surveillance activities within the Milne Point Unit. The report includes surveillance data associated with waterflood projects and development activities. The time period covered is January through December 2024. Kuparuk River Oil Pool Waterflood Project Summary Cumulative water injection since waterflood startup through the end of 2024 is 714 MMSTB and cumulative gas injection is 133.9 BSCF. Voidage replacement ratio averaged 0.77 RB/RB in 2024 compared to 0.94 RB/RB in 2023. The Kuparuk River Oil Pool is split up in Hydraulic Units which represent regions of the reservoir that are believed to be hydraulically isolated due to faulting and/or lithologic controls. In 2024, 15 static pressure readings were obtained in the Kuparuk River reservoir. Average pressure from those readings was 3434 psi at a datum depth of 7000’ SSTVD Milne Point Unit Kuparuk Pool Daily Production Rate Averages By Month:Daily Injection Rate Averages By Month: Oil Water Gas Reservoir Water Gas Voidage Voidage Voidage Month Prod Rate Prod Rate Prod Rate Voidage Inj Rate Inj Rate Replacement Replacement Balance 12/31/2012 (stb/day)(stb/day)(mscf/day)(rbbl/day)(stb/day)(mscf/day)(rbbl/day)Ratio (rbbl/day) 1/31/2024 8,238 47,398 13,265 66,796 56,713 12,926 68,192 1.02 1,396 2/28/2024 9,284 56,551 15,042 78,535 54,700 14,446 67,398 0.86 -11,137 3/31/2024 9,623 55,715 16,261 79,010 46,258 15,402 59,615 0.75 -19,395 4/30/2024 9,753 52,531 16,396 76,011 52,097 14,223 64,573 0.85 -11,438 5/31/2024 10,016 53,323 14,981 75,900 53,360 14,066 65,726 0.87 -10,173 6/30/2024 11,221 53,549 15,452 77,656 56,063 16,354 70,351 0.91 -7,304 7/31/2024 11,089 56,365 11,824 77,405 50,604 11,913 61,159 0.79 -16,246 8/31/2024 10,204 55,466 14,066 77,501 47,349 12,635 58,448 0.75 -19,053 9/30/2024 10,634 54,570 15,394 78,089 48,602 13,055 60,065 0.77 -18,023 10/31/2024 9,992 69,145 15,547 92,402 41,545 13,351 53,146 0.58 -39,256 11/30/2024 9,661 70,295 13,291 91,401 40,319 11,864 50,680 0.55 -40,722 12/31/2024 9,354 65,877 14,898 87,949 38,952 14,590 51,532 0.59 -36,416 Cumulative Production By Month:Cumulative Injection By Month: Oil Water Gas Reservoir Water Gas Voidage Voidage Voidage Month Cumulative Cumulative Cumulative Voidage Cumulative Cumulative Replacement Replacement Balance 12/31/2012 (stb)(stb)(mscf)(rbbl)stb mscf (rbbl)Ratio (rbbl) 1/31/2024 255,373 1,469,332 411,214 2,070,673 1,758,095 400,702 2,113,940 1.02 43,267 2/28/2024 259,945 1,583,426 421,170 2,198,983 1,531,597 404,483 1,887,153 0.86 -311,830 3/31/2024 298,323 1,727,176 504,092 2,449,317 1,433,983 477,452 1,848,073 0.75 -601,243 4/30/2024 292,576 1,575,926 491,894 2,280,341 1,562,924 426,676 1,937,198 0.85 -343,142 5/31/2024 310,493 1,653,001 464,398 2,352,885 1,654,154 436,055 2,037,509 0.87 -315,376 6/30/2024 336,633 1,606,476 463,573 2,329,671 1,681,903 490,618 2,110,538 0.91 -219,134 7/31/2024 343,765 1,747,300 366,539 2,399,558 1,568,739 369,295 1,895,920 0.79 -503,639 8/31/2024 316,319 1,719,449 436,049 2,402,522 1,467,816 391,671 1,811,881 0.75 -590,641 9/30/2024 319,007 1,637,090 461,821 2,342,657 1,458,068 391,644 1,801,965 0.77 -540,693 10/31/2024 309,750 2,143,507 481,943 2,864,473 1,287,906 413,881 1,647,535 0.58 -1,216,939 11/30/2024 289,830 2,108,841 398,719 2,742,044 1,209,583 355,935 1,520,391 0.55 -1,221,653 12/31/2024 289,961 2,042,176 461,850 2,726,411 1,207,498 452,293 1,597,504 0.59 -1,128,907 Average: 2024 9,922 57,565 14,701 79,888 48,880 13,735 1,850,801 0.77 -579,161 Cumulative:stb stb mscf rb stb mscf rb rb 31-Dec-24 3,621,975 21,013,700 5,363,262 29,159,537 17,822,266 5,010,705 22,209,607 0.76 -6,949,929 RESERVOIR VOIDAGE BALANCE January - December 2024 Schrader Bluff Oil Pool Waterflood Project Summary The Schrader Bluff Oil Pool cumulative voidage replacement for the calendar year 2024 was 0.76 (target 1.0) with a cumulative voidage replacement for the life of the project is 0.74. Initial development of the Schrader Bluff pool began in 1991 in the Tract 14 area (G/H/I/ and J pads) and consisted of vertical producers and injectors being completed in most all of the Schrader Bluff sands (Na-Nf , Oa, and Oba). Injection into the pool began approximately one year after the first producers were drilled. The vertical injectors were typically installed with selective completions allowing for regulation of injection into different reservoir sands. Starting in the late 1990’s development continued in the Tract 14 area with both infill drilling and delineation wells as well as wells being drilled from both existing B and E pads. The development strategy shifted toward drilling multli lateral horizontal producers that were supported by vertical multi sand injectors. In 2002 a new pad was installed, S Pad, with similar development strategy but split between the Nb and Oa/Oba sands with dedicated Nb sand horizontal producers and Oa/Oba sand dual lateral producers. These producers were supported by vertical multizone regulated injectors. Limited development occurred upon the completion of the S Pad project until 2016 when delineation wells were drilled from L Pad. The development strategy again shifted to dedicated single sand horizontal producers and injectors. In 2019 another pad was built, M Pad, where further delineation of the Schrader Bluff began. In 2020 and 2021 efforts began do “redevelop” the existing Tract 14 and S Pad areas which involved P&A’ing the existing well stock in an individual sand and redrilling the area with horizontal wells. New developments in the Schrader continue to utilize source water primarily from the shallower prince creek formation. All new developments since Hilcorp’s purchase of the asset in 2014 have utilized clean source water for injection. Utilizing produced water for injection at Milne Point has shown to be detrimental to injectivity due to solids and produced crude carry over accumulating in the injection wells. All future developments in the Schrader Bluff will plan to use clean source water. Hilcorp continued the Schrader Bluff Nb sand polymer injection pilots at J and L pads that were started in 2018. Results continue to be very encouraging with observed decreased water cuts and delayed water breakthrough. Polymer injection facilities were installed and injection initiated in the Schrader Oa sand developments at F and M-Pad in May and July of 2020, respectively. Polymer injection facilities were then installed at both I and E pads targeting the Schrader Bluff Nb and Oa reservoirs in the fall of 2020. Polymer injection facilities were then installed at both I and E pads targeting the Schrader Bluff Nb and Oa reservoirs in the fall of 2020. Polymer injection facilities were then installed at S pad targeting the Schrader Bluff Nb reservoir in the spring of 2022.Polymer injection facilities were then installed at B pad targeting the Schrader Bluff Nb and Oa reservoirs in the beginning of 2023. Current total polymer injection rate into the Schrader Bluff is approximately 55,095 bwpd. Average pressure throughout the field is 1775 psi at reference depth of 4000’ SSTVD based on 2024 surveys taken. Original pressure at reference depth was 1730 psi. Milne Point Unit Schrader Bluff Pool Production Rate Averages:Injection Rate Averages: Oil Water Gas Reservoir Water Gas Voidage Voidage Voidage Month Prod Rate Prod Rate Prod Rate Voidage Inj Rate Inj Rate Replacement Replacement Balance 12/31/2012 (stb/day)(stb/day)(mscf/day)(rbbl/day)(stb/day)(mscf/day)(rbbl/day)Ratio (rbbl/day) 1/31/2024 32,750 31,118 13,576 76,356 58,066 0 58,647 0.77 -17,708 2/28/2024 34,420 32,807 13,326 79,140 63,074 0 63,705 0.80 -15,435 3/31/2024 32,804 34,805 12,145 78,284 60,782 0 61,390 0.78 -16,894 4/30/2024 33,535 35,561 10,795 77,923 64,892 0 65,541 0.84 -12,382 5/31/2024 34,090 36,340 12,052 80,793 62,395 0 63,019 0.78 -17,774 6/30/2024 33,539 33,676 13,452 79,442 55,301 0 55,854 0.70 -23,588 7/31/2024 33,783 34,890 14,242 81,889 65,131 0 65,783 0.80 -16,107 8/31/2024 30,912 38,764 10,336 78,368 69,822 0 70,520 0.90 -7,848 9/30/2024 36,318 41,399 9,757 84,816 72,129 0 72,851 0.86 -11,965 10/31/2024 36,148 52,254 10,174 96,173 65,690 0 66,347 0.69 -29,827 11/30/2024 37,680 52,302 12,434 100,415 59,584 0 60,180 0.60 -40,235 12/31/2024 38,617 47,769 13,667 98,210 60,567 0 61,172 0.62 -37,037 Cumulative Production:Cumulative Injection: Oil Water Gas Reservoir Water Gas Voidage Voidage Voidage Month Cumulative Cumulative Cumulative Voidage Cumulative Cumulative Replacement Replacement Balance 12/31/2012 (stb)(stb)(mscf)(rbbl)stb mscf (rbbl)Ratio (rbbl) 1/31/2024 1,015,247 964,659 420,847 2,367,023 1,800,060 0 1,818,061 0.77 -548,962 2/28/2024 963,763 918,595 373,119 2,215,917 1,766,081 0 1,783,742 0.80 -432,175 3/31/2024 1,016,919 1,078,963 376,505 2,426,810 1,884,241 0 1,903,083 0.78 -523,727 4/30/2024 1,006,061 1,066,837 323,843 2,337,692 1,946,766 0 1,966,234 0.84 -371,458 5/31/2024 1,056,796 1,126,541 373,619 2,504,582 1,934,258 0 1,953,601 0.78 -550,981 6/30/2024 1,006,182 1,010,283 403,568 2,383,268 1,659,032 0 1,675,622 0.70 -707,646 7/31/2024 1,047,278 1,081,598 441,506 2,538,570 2,019,069 0 2,039,260 0.80 -499,310 8/31/2024 958,261 1,201,675 320,421 2,429,400 2,164,480 0 2,186,125 0.90 -243,276 9/30/2024 1,089,537 1,241,964 292,706 2,544,485 2,163,884 0 2,185,523 0.86 -358,962 10/31/2024 1,120,574 1,619,868 315,386 2,981,374 2,036,385 0 2,056,749 0.69 -924,625 11/30/2024 1,130,405 1,569,052 373,012 3,012,448 1,787,531 0 1,805,406 0.60 -1,207,042 12/31/2024 1,197,118 1,480,854 423,679 3,044,499 1,877,571 0 1,896,347 0.62 -1,148,152 Average: 2024 34,550 39,307 12,163 84,317 63,120 0 63,751 0.76 -20,567 Cumulative:stb stb mscf rb stb mscf rb rb 31-Dec-24 12,608,141 14,360,889 4,438,211 30,786,067 23,039,358 0 23,269,752 0.76 -7,516,315 RESERVOIR VOIDAGE BALANCE January - December 2024 Schrader Bluff PLT Logs and Analysis No PLT logs were run on multi-sand injectors in 2024. Total active injector count in the Schrader Bluff is 66 with a total of 9 active multi-sand injectors at the end of 2022. These wells are B-02, E-12, G-01, I-07A, I-16, I-18, J-05, S-02, and S-15. The remaining active injectors are either dual string vertical injectors targeting single intervals, single string horizontal injectors targeting individual sands, or selective completions that are only injecting into a single zone. Sag River Oil Pool Waterflood Project Summary A Participating Area for the Sag was approved in 2005. During 2024, Sag Oil Pool had the field total to 4 production wells with no active injection wells. There was no production from the reservoir in most of 1999 and the entire year of 2000 because it was not economical to repai r the failed ESPs. The Sag River Pool oil production averaged 37 STBD and water production averaged 146 STBD in 2024. Cumulative production through the end of 2024 was 4.2 MMSTB of oil, 5.3 BSCF of gas, and 4.8 MMSTB of water. During 2024 one pressure surveys in the C-46 well was obtained indicating a reservoir pressure of 1448 psi at a datum depth of 8750’ SSTVD. As this is a single well, this not indicative of the average reservoir pressure of the pool. Milne Point Unit Sag Pool Production Rate Averages:Injection Rate Averages: Oil Water Gas Reservoir Water Gas Voidage Voidage Voidage Month Prod Rate Prod Rate Prod Rate Voidage Inj Rate Inj Rate Replacement Replacement Balance 12/31/2012 (stb/day)(stb/day)(mscf/day)(rbbl/day)(stb/day)(mscf/day)(rbbl/day)Ratio (rbbl/day) 1/31/2024 5 26 43 127 0 0 0 0.00 -127 2/28/2024 93 415 542 1,676 0 0 0 0.00 -1,676 3/31/2024 152 635 702 2,268 0 0 0 0.00 -2,268 4/30/2024 26 246 327 1,006 0 0 0 0.00 -1,006 5/31/2024 0 0 1 2 0 0 0 0.00 -2 6/30/2024 0 0 0 0 0 0 0 0.00 0 7/31/2024 0 0 0 0 0 0 0 0.00 0 8/31/2024 0 0 0 0 0 0 0 0.00 0 9/30/2024 110 205 332 976 0 0 0 0.00 -976 10/31/2024 7 8 15 43 0 0 0 0.00 -43 11/30/2024 0 0 0 0 0 0 0 0.00 0 12/31/2024 47 215 29 288 0 0 0 0.00 -288 Cumulative Production:Cumulative Injection: Oil Water Gas Reservoir Water Gas Voidage Voidage Voidage Month Cumulative Cumulative Cumulative Voidage Cumulative Cumulative Replacement Replacement Balance 12/31/2012 (stb)(stb)(mscf)(rbbl)stb mscf (rbbl)Ratio (rbbl) 1/31/2024 156 806 1,343 3,922 0 0 0 0.00 -3,922 2/28/2024 2,599 11,625 15,188 46,926 0 0 0 0.00 -46,926 3/31/2024 4,710 19,673 21,754 70,312 0 0 0 0.00 -70,312 4/30/2024 783 7,389 9,812 30,178 0 0 0 0.00 -30,178 5/31/2024 2 12 18 54 0 0 0 0.00 -54 6/30/2024 0 0 0 0 0 0 0 0.00 0 7/31/2024 0 0 0 0 0 0 0 0.00 0 8/31/2024 0 0 0 0 0 0 0 0.00 0 9/30/2024 3,291 6,145 9,950 29,268 0 0 0 0.00 -29,268 10/31/2024 210 243 472 1,340 0 0 0 0.00 -1,340 11/30/2024 0 0 0 0 0 0 0 0.00 0 12/31/2024 1,469 6,676 906 8,923 0 0 0 0.00 -8,923 Average: 2024 37 146 166 532 0 0 0 0.00 -532 Cumulative:stb stb mscf rb stb mscf rb rb 31-Dec-24 13,220 52,569 59,443 190,922 0 0 0 0.00 -190,922 RESERVOIR VOIDAGE BALANCE January - December 2024 MPU Pool Allocation Factors Total Milne Point production increased a total of 1.47 MMBO from 2023 to 2024 primarily due to development drilling in the Schrader Bluff pool. Water production increase due to the addition of new wells and expected water production increase from existing wells. Gas production increased commensurate with increased oil production. Production Pool Oil Water Gas Oil Water Gas Oil Water Gas stb stb mscf stb stb mscf stb stb mscf Schrader Bluff 11,753,609 11,833,074 4,565,918 12,608,141 14,360,889 4,438,211 854,532 2,527,815 -127,707 Kuparuk 2,957,127 15,797,824 4,304,080 3,621,975 21,013,700 5,363,262 664,848 5,215,876 1,059,182 Sag River 61,557 194,789 151,556 13,220 52,569 59,443 -48,337 -142,220 -92,113 Total 14,772,293 27,825,687 9,021,554 16,243,336 35,427,158 9,860,916 1,471,043 7,601,471 839,362 Allocation Pool Oil Water Gas Oil Water Gas Oil Water Gas frac frac frac frac frac frac frac frac frac Schrader Bluff 0.80 0.43 0.51 0.78 0.41 0.45 -0.02 -0.02 -0.06 Kuparuk 0.20 0.57 0.48 0.22 0.59 0.54 0.02 0.03 0.07 Sag River 0.00 0.01 0.02 0.00 0.00 0.01 0.00 -0.01 -0.01 20242023 2023 2024 2024 - 2023 Delta 2024 - 2023 Delta MPU Well Tests and Oil Allocation Factors 2024 Date Kuparuk Schrader Sag Ugnu Total Kuparuk Schrader Sag Ugnu Total Kuparuk Schrader Sag Ugnu Total 1 Jan-24 108 117 0 2 227 52 66 1 1 120 2.1 1.8 0.0 2.0 1.9 0.91 2 Feb-24 123 117 2 2 244 51 65 2 1 119 2.4 1.8 1.0 2.0 2.1 0.95 3 Mar-24 134 191 2 2 329 51 69 2 1 123 2.6 2.8 1.0 2.0 2.7 0.97 4 Apr-24 158 159 3 2 322 52 71 2 1 126 3.0 2.2 1.5 2.0 2.6 0.99 5 May-24 123 163 0 2 288 53 69 1 1 124 2.3 2.4 0.0 2.0 2.3 0.93 6 Jun-24 126 147 0 2 275 55 70 0 1 126 2.3 2.1 0.0 2.0 2.2 0.91 7 Jul-24 98 130 0 2 230 53 73 0 1 127 1.8 1.8 0.0 2.0 1.8 0.90 8 Aug-24 106 120 0 1 227 53 72 0 1 126 2.0 1.7 0.0 1.0 1.8 0.90 9 Sep-24 113 122 3 2 240 51 76 1 1 129 2.2 1.6 3.0 2.0 1.9 0.94 10 Oct-24 121 149 0 2 272 54 73 1 1 129 2.2 2.0 0.0 2.0 2.1 0.89 11 Nov-24 111 158 0 2 271 53 75 0 1 129 2.1 2.1 0.0 2.0 2.1 0.86 12 Dec-24 161 175 1 3 340 53 77 1 1 132 3.0 2.3 1.0 3.0 2.6 0.87 Average MPU Oil Allocation Factor Well Test Count Active Well Count Average Well Test per well Annual Plans of Development Review (42nd – 2024 and 43rd - 2025) The following annual report describes the operations conducted under the 42nd POD as required by 11 AAC 83.343(d), submitted to the Division of Oil and Gas, Alaska Department of Natural Resources in October 2024. 1. Production Summary: During the 2024 calendar year, the MPU produced approximately 9,870 million cubic feet (“MMcf”) of gas and 16,280 thousand barrels (“Mbbl”) of oil.1 From January 1, 2024, through September 30, 2024, the average daily production rate was 43,474 barrels of oil per day (“BOPD”). 2. Rotary Drilling Program: Hilcorp anticipated drilling twenty (20) wells, as amended to reflect twenty-four (24) new wells under the 42nd POD with a focus on Schrader Bluff Formations wells, or up to two (2) Kuparuk Formation wells, and up to two (2) Ugnu (Undefined) Formation wells. Hilcorp has drilled sixteen (16) new wells with an additional six (6) wells anticipated to be completed by the end of the 42nd POD period, as detailed below: a. Schrader Bluff Formation – Anticipated drilling eleven (11) wells, as amended to reflect drilling up to twenty-four (24) wells. To-date, Hilcorp has successfully drilled fifteen (15) wells (7 producers, 8 injectors) detailed below. An additional five (5) wells (4 producers, 1 injector), denoted by *, are anticipated to be drilled by the end of the 42nd POD period. • I-25 – horizontal injector • I-24 – horizontal producer • I-23 – horizontal injector • I-26 – horizontal producer • I-22 – horizontal producer • J-43 – horizontal injector • J-42 – horizontal producer • J-41 – horizontal injector • J-44 – horizontal producer • J-45 – horizontal injector • R-141 – horizontal producer • R-142 – horizontal injector • R-101 – horizontal injector • R-102 – horizontal producer • R-103 – horizontal injector • R-104* – horizontal producer • J-40* – horizontal producer 1 Milne Point Unit has not historically and is not currently equipped to sell natural gas liquids (“NGLs”). All of the oil produced/sold from the Milne Point field is conventional black oil. • J-32* – horizontal producer • J-47* – horizontal injector • J-46* – horizontal producer b. Kuparuk Formation – Anticipated drilling seven (7) wells, as amended to reflect drilling up to two (2) wells (1 producer, 1 injector) dependent on the Schrader Bluff drilling campaign. Successfully drilled one (1) well detailed below. • F-34L1 – horizontal producer c. Ugnu (Undefined) Formation – Anticipated drilling 2 wells (1 producer, 1 injector). Plan to drill one (1) well, detailed below, by the end of the 42nd POD period. • S-204* – horizontal producer 3. Coil Tubing Drilling Program: Hilcorp anticipated performing coiled tubing drilling operations on six (6) wells during the 42nd POD period. A total of six (6) wells (5 producers, 1 injector) were successfully drilled, as detailed below. The wells listed below are all targeting the Kuparuk Formation. • B Pad • B-19A • C Pad • C-13A • C-14A • E Pad • E-19A • F Pad • F-5L1/ F-65L1-01 • CFP Pad • CFP-02A 4. Workover Program: Hilcorp did not have any planned workover operations during the 42nd POD period. Detailed below are those workover operations executed to-date in order to maintain and enhance production. • ASR1 Workover Rig – Hilcorp successfully completed twenty (20) well workovers and have an additional twelve (12) workovers, denoted by *, planned before the end of the 42nd POD period, as detailed below: • G-14 - ESP Swap • G-18 - Tbg Swap to 3-1/2" JP • L-62 - ESP Swap • L-29 - ESP Swap • L-11 - ESP Swap • L-07 - ESP Swap • L-43 - ESP Swap • F-66A - ESP Swap • F-79 - ESP Swap • L-39B - ESP Swap • I-06 - ESP Swap • I-09 - ESP swap • I-03 - Install JP • I-26 - Install ESP • R-142 - ESP Swap • I-40 - Convert to ESP • S-17 - JP RWO • L-54 - ESP Swap • I-26 - Convert to JP • B-24 - TBG Swap • *J-02 - WSW ESP swap • *B-28 - JP RWO • *D-01 - ESP Changeout • *L-36 - HIT, ESP Swap • *I-08 - Workover • *H-11 - Water Source Well RWO • *H-07 - Conversion to JP • *H-16 - P&A Laterals • *H-15 - P&A Laterals • *K-17 - ESP Swap • *L-25 - ESP Swap • *F-53 - ESP Swap 5. Major Facility Projects: As of the date of this submission, Hilcorp has not completed any of the anticipated facility projects. A summary of the anticipated and unanticipated projects are detailed below: • The following projects are anticipated to be completed before the end of the 42nd POD period: • E Pad power fluid separation • Reactivate D Pad transmission line to B Pad • The following projects are anticipated to be initiated prior to the end of the 42nd POD period and will continue through the 43rd POD period: • H Pad power fluid separation • Return gas injection to F and L Pads through existing gas injection lines • The following additional unanticipated projects were executed during the 42nd POD period, and are planned to be completed by the end of 42nd POD period: • Solar Titan 130 power generation install at L Pad • CFP B-Train Internals upgrade • J Pad polymer injection expansion 6. Development and Operations Outside of 42nd POD Period: The following are actual operations that deviated from or did not conform to the previously approved plan: • R Pad Drillsite construction • CFP 3rd Train Oil Separation • Solar Titan 130 power generation install at L pad • CFP B Train Internals upgrade • J Pad polymer injection expansion 43rd PLAN OF DEVELOPMENT AND OPERATIONS During the 43rd POD Period, Hilcorp anticipates completing the following drilling, workover and facility projects: A. Proposed Rotary Drilling Program: Hilcorp anticipates drilling nineteen (19) rotary wells. Potential drilling candidates are listed below and are subject to change: a. Schrader Bluff Formation – 18 wells (9 producers, 9 injectors) b. Kuparuk Formation – 1 well (1 producer, 0 injectors) c. Ugnu (Undefined) Formation – 0 wells d. Sag River Formation – 0 wells B. Proposed Coiled Tubing Drilling Program: Hilcorp anticipates performing coiled tubing drilling operations on three (3) wells. Potential candidates are being assessed in all formations across MPU. C. Proposed Well Work and Workover Program: Hilcorp anticipates continued utilization of the ASR1 rig to service wells as required to maintain and enhance production. D. Major Facility Projects: During the 43rd POD Period, Hilcorp plans to undertake the following key facility projects. Additional facility maintenance, expansion, and repair projects will be executed as needed. a. H Pad power fluid separation b. Return gas injection to F and L Pads through existing gas injection lines c. L Pad Polymer Expansion d. H Pad Polymer Expansion e. Return water injection to K Pad f. CFP A Train Internals upgrade g. CFP PLC 5 upgrade E. Long-Range Activities: Hilcorp is evaluating the following potential long-term activities: a. Continue to evaluate additional drilling opportunities in the Schrader Bluff Formation. b. Evaluation of continued performance from existing S-203, and planned S-204 Ugnu wells to help determine future Ugnu development strategy. c. Continue to evaluate infill drilling opportunities in the Kuparuk Formation. d. Continue targeted facility upgrades to increase production capacity of Milne Point Unit.