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Home My WebLink AboutCO 056Conservation Order Cover Page XHVZE This page is required for administrative purposes in managing the scanning process. It marks the extent of scanning and identifies certain actions that have been taken. Please insure that it retains it's current location in this file. ~)_~ ~Z~ Conservation Order Category Identifier Organizing RESCAN [] Color items: [] Grayscale items: [] Poor Quality Originals: [] Other: NOTES: DIGITAL DATA Diskettes, No. ~ [] Other, No/Type OVERSIZED (Scannable with large plo.~..r~nner) ~"""Maps: ~ Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other BY: ROBIN (~ Scanning Preparation BY: ROBIN ~ Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: /,,.L~ PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: Isl XYES __ NO BY: Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: ~ YES ~ NO (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL ATTENTION iS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALITY, GRAYSCALE OR COLOR IMAGES) General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 RE: THE APPLICATION OF PAN AMERICAN PETROLEUM ) CORPORATION for exception to the commingling ) provisions of Conservation Orders No. 44 and ) No. 53 for 'their Middle Ground Shoal Well 17595 ) No. 11 and other wells to permit commingling ) of oil and gas production from Pool "A" with ) oil and gas production from other approved ) commingled pools in the Middle Ground Shoal ) Field. ) Conservation Order #56 January 3, 1968 IT APPEARING THAT: 1. Pan American Petroleum Corporation submitted an application dated October 11, 1967, requesting the above exceptions and authorizations. 2. Notice of the hearing was published in the Anchorage Daily News on October 27, 1967. 3. A public hearing wa~' held on November 14, 1967, in the 'Z. J. Loussac Library in Anchorage. 4. The Committee on its own motion re-opened the case and gave public notice of hearing to be held on December 21, 1967. Notice of the re-opening was published in the Anchorage Daily News on December 4, 1967. 5. .A waiver of personal service was received from each of the affected parties for both the original hearing and the re-hearing. 6. A public hearing was held on Dec~aber 21, 1967, in the Z. J. Loussac Library Building in Anchorage. Testimony was presented by Pan American Petroleum. Corporation.. CONSERVATION ORDER #56 Page 2 January 3, 1968 AND IT FURTHER APPEARING THAT in the Middle Ground Shoal Field the proposed commingling of fluids from the "A" pool with those of the "B, C, and D" and the "E, F, and G" pools or a combination of these commingling groups would be advantageous since it would result in better utilization of reservoir energy and would permit installation of less complicated well equipment. AND IT FURTHER APPEARING THAT test data for Well No. 11 indicate increasing water production and the possibility of a different energy driving mechanism from that of the other pools in the Middle Ground Shoal Field and a possible danger to ultimate recovery if these pools are left in communication fOr long periods of time. AND IT FURTHER APPEARING THAT with the mechanical equipment which the operator now proposes to install, there is very little danger of fluid cross-flow under operating conditions and very little chance of reservoir damage resulting in a reduction of ultimate recovery. AND IT FURTHER APPEARING THAT individual well tests can be made for each pool commingling group in Well No. 11 and the proposed installations in other wells. AND IT FURTHER APPEARING THAT since this is a new type of installation for the State, provisional approval should be given until adequate test data are available to prove the feasibility and safety of the equipment. NOW, THEREFORE, IT IS ORDERED THAT , Rule 1 Pan Americanbe permitted to commingle the fluids from the "A" pool with those from either the "B, C, and D" commingling group of pools or the "E, F, and G" commingling group of pools in their well MGS 17595 No. 11 providing th'at: (a) Downhole check valves are installed to prevent backflow from one commingling group of pools to any other pool. (b) Prior to initial downhole commingling, a 24-hour production test will be made on each pool or pool commingling group. Within three months after initial downhole commingling, a 24-hour production test will be made of the commingled fluids, then a 24-hour production test on "A" pool and a similar test on the remaining commingled pool or pool group. Similar tests must be made at the end of six months and test results reported to the Committee. CONSERVATION ORDER #56 Page 3 January 3, 1968 Rule 2 Until the test period required by Rule l(b) above is completed, Pan American be permitted to complete other wells with two or three strings of tubing utilizing the downhole check valves to commingle production from the "A" pool with either the "B, C, and D" or "E, F, and G" commingling group of pools by complying with Section 2154 of the Oil and Gas Conservation Regulations. Rule 3 If the tests required by Rule l(b) above show that the equipment operates safely and without well damage, the Committee may grant future approval to commingle production from the "A" pool with any or all commingling groups in the Middle Ground Shoal Field in accordance with Section 2154 of the Oil and Gas Conservation Regulations. Rule 4 In each well where the "A" pool is commingled withother pools, a 24-hour production test will be made on .each pool or pool commingling group at least once each Six months and the results of these tests will be used to allocate production to the respective pools until the next test is taken. CONSERVATION ORDER #56 Page 4 January 3, 196~ DONE at Anchorage, Fairbanks, and Juneau, Alaska, and dated January 3, 1968. T'homas R. Marshall, Jr., EXec'u~ive Secretary Alaska Oil and Gas Conservation Committee Concurrence: ~ame_~ A. Williams, Chairman ~las~a Oil and Gas Conservation Committee ...... /I .~.~"/J ..~ ,: ..y ' ..,,./_. ~ _ D'aie ~allingt°n' Memb~'~:.:" ......... ' '" Alaska Oil and Gas Conservation Committee ~arl L.: 9o~derA~e, Member Alaska Oil and Gas Conservation Committee Harry W. Kugler, Member Alaska Oil and Gas Conservation Committee CONSERVATION FILE #56 (continuation) FURTHER HEARING BY THE OIL AND GAS _ COMMISSION ON THE APPLICATION OF PAN AMERICAN FOR COMMINGLING ON MIDDLE GROUND SHOAL 7 Hearing on Decemb~, 1967' ar Z. Jo~ Loussac Library, Council Chambers, Anchorage, Alaska.. 10 11 12 14 15 16 17 18 19 21 p K 0 C E E D -~' N G S CHAE'Pd~AN' This is a reopening of a hearzng held on November 1/,~ by the Oil and Gas Conservation Co~Tm~ittee on a re- quest by Pan Amer'[can Petroleum~o~po~anion ~ ~ ~ ' _orr the Commz~,_ee'"-~ to grant relief from Conservation Ordez~sNo. 4/~ and No. 53 for M~ddle Ground Shoal i[59~, Well No. il, ~o permit commingling of o~Z and gas produced from MGS Oil Pool A with oil and gas produced from other pools~ commingled poois~ in the Middle G~ound Shoal Field. The purpose of this reopening is' to afford the a~plicant an o~portunity to present ne~ evidence not available a~ the November 14 hearing. Notice of the reopening was ~ublished December 4. Waivers of personal service of ~he ..notice were ob- tained from affected operators. I believe there were no protests received, is that right, Mr. Marshall? Mil. FLIRSHALL' That ~s correct. CHAI?~vL~N· No Protests. The Committee members are all present 'as well as the technical advisers and legal counsel, Mr. Hartig. I believe with that we're ready to proceed. Mr.,Swan? NEt. SWAN' Mr. Chairman~ I'm Oscar Swan of Pan American petroleum Corporation. Mr. Crews and I appeared at the previous hearing, and we are both entering our appearance in this matter. I ~ould like to call the Com~nittee~s attention to the fact that our application is not only for permission to commingle in a cer- tain manner in one well, MGS i!, but it also asks that future ~;. ~ ~ ~.,~ wi)iv. Of Mines &Min.. ~ddlc~tio.~ inc. w~th J 825 WEST EIGHTH AVENUE 277-4713 ANCHORAGE, I0 11 12 13 15 16 17 18 19 20 21 22 23 24 25 requests for permission to commingle production from MGS Oil Pool A with production from other approved commingled pools in any well in the Middle Ground Shoal Field, might be approved adminis- tratively upon a proper showing. And also that the Conm~ittee enter such other order as may be justified o'~~ required by the evidence presented to it. For that reason both at the previous ~.hearing and at this hearing we are trying to give you information not only on Well No. I1 but on what-we may want to do in futnre wells so that the Administrative approval can be granted with some knowledge of the -- what the problem is. In other words, we want to give you the background that you will need in order to intelligently know whether Administrative approval should be granted in a particular case. And at the previaus case, because of the fact that there was no protest and 'we were not aware of any real objections to what 'we were asking for and saw no reason for any objection, we perhaps didn't present all of the testimony we should have. Since that time question, s have come up which quite frankly indicate -- indicated to us that we didn't explain to you .some of the things that later appeared to bother you. We feel that this should be done in a public hearing. It's fine to answer certain inquiries but these were beginning to reach the point where we felt that whatever decision the Committee made would be made on not only the evidence in the record but things that were not in the record~ and we don~t -- we feel that that is -- is wrong. If this may require the. Committee to take the pos i- ANC~HORAGE, AI..A$10% 10 11 lfl 14 15 16 17 18 19 fi0 9,1 '- 9,9, tion of our opponent in this matte~_~. l~ve been in that position before it doesn't bother me and I hope it will not boun~r you. if you have to disagree with us~ fine. We want to .... ~ow about it. That's what these hearings are for. if you have some questions, we want to know what those questions are; we want an opportunity to -- it is the custom in a great many commissions for the Com- mission to put on it own witness or. witnesses, and to have them testify as to matters which they have -- or put their opinions in the record~ and of course~ they're subject to Cross Examinatio just as any other witness is. if the Committee has serious ob- jection~s to anything we propose here we think that you should give us that type of opportuniny. I think after we put on our case we probably will have anticipated and answered your questions I hope so..~ The thing I would like to get across most of all is we don"t expect you to agree with us on everything. In fact~ i used to work for a lawyer one time and the easiest way to insult him 'was to agree with him. i~m not quite as contrary as 'that but -- but we would like to have this opportunity to thrash it out~ find out what may be worrying you, and have a decision based on what is in the record, if you don't do that itts sort of like playing poker~ and if I lay down a full house, aces up~and you say i~m sorry~ ! beat you, and take the pot in without showing me your cards, I~m a little unhappy. So we~d like to see your Cards. i think that's the po int. With that I have one witness who -- he was sworn in the WEST EIGHTH AVENUE -- SUITE 277-471:3 ANCHORAGE, ALA$~(A - 5 - 10 11 19. 15 16 17 18 19 2O 21 9.4 case originally. ~ think he pro~=b~y needs to be sworn again because it's been continued. {Mr. Nabors is sworn in by Mr. Marshall) Q (By Mr. Swan) Will you state your name, please? A Fred Nabors. Q Are you the same ~{r. Nabors who was sworn and who testi- fied at the previous hearing? A I am. Q (To the Committee) There's no reason to repeat his qualifications at this time, .is there? CHA iPd{AN. None whatsoever. Q in view of the fact the transcript we got of the previous hearing contained some spots that were a little rough, we ire going to try to give a complete case at this hearin but we will not -- wells if we pass over anything too lightly, would you please stop us and make us explain it fully?. Mr. Nabors~ would you tell the Copmmittee just what it is we're trying to do here? First, have we com- pleted a well in the Middle Ground Shoal Field which is capable of producing from the ~'A" Pool? A Yes~ sir, we have. Well No. ti. Q is any other well in the field now completed in that pool A There are additional wells that are tested but not spudde Q It is the only one that is actually producing from the "A" Pooi ? , O1 ~ ~,~.., ,, ~v,.~ ~,Div. of Mines &Min.. ,~ ~.,~. I~Ic~ Inc. with It~ u~xl~r~lng tt~t It r~y b~ m1~odu~:~ f~ Intef'COml~ny u~ only. WE:~T EIG;HTH AVEIXlUE ~ ~LIITE 277-~713 ~ ANCHORAGE. ALASKA "7 10 11 12 13 15 16 17 18 19 2O 21 9.9. 9.5 - 6 - Yes ~ s ir. And 'the purpose of this application is to permit us to ~ ~ oducu zzom that pool with either the com~m~no~e the pr '-ion =" production from the '~B~'~o ,'~D~' or the ~E~,'~:'~ ,'~G'~. pools? Yes, s ir. Do you have an exhibit that will show just what we've done in Well No. 1i? Yes., sir, i have exhibits here that represent the well bore .-- this picture on' the left -- perhaps we could .name this Exhibit ;/il -- is a representation of well bore equipment that's installed in a well. This is very com- mon in our industry ~-~= . ~ is compressed somewhat. ~'-=~= outer border represents a 9 5/8'~ casing string cemented. to T.D. These vertical colored lines represent the tubing strings, in this well you ~ill see three tubing strings, .each one terminating in an inserval that is identified by a particular color which is also a through ~ carried/~e tubing string State '~A" pool State ~B~ ~C" ., · ~ ~ ~ "~D~' pools, State ~E~,~F~,~'G~ p0ols. At the top of each of these strings is a control that's identified in the legend as a subsurface safety valve. We take at least 400 feet and we jump down to the next point on this drawing at 5600 feet. This.is just a continuous tubing string .,~on.:~te.c~.in'g those,.,pqi, nts' So actually we have he're a representation of the lower part of the hole. Inci- O1 ~, ,, ~v,~ wDiv., of Mines &Min.. ,~ ~,~. I Inc. with tf~ ut~C~t~ncl~ng tt~t it m~y b~ Ili~duc~J for Int~t-coml~ny u~ D~Iy. [ WEST EIGHTH AVENUE -- SUITE 277-4713 ANCHORAGE, ALASKA 1 2 3 5 7 8 9 10 11 12 13 15 16 17 18 2O 21 22 23 2~ 25 - 7 - d - ~ . ~ , , pool is bigger than eL:ta~iy this State ~:v~ :~F,~ represented here. This is broken also. in '-~= ': n~:~ ~ubing .... =~2ea .~zom the sTr~nss we have equ~pme~,~- Eha~ ~s ope'~'' ' surface by wireline ~ools The nipple for landing that's indicated in o ~ .s =~=~as repre- e~cn o_ these tubing s .... sents the position in which the plug can.be set which at will blank off the tubing /that point. The sliding s!eev~ is represented as through the tubing string~ and this sliding sleeve will permit opening and closing ports in the tubing which will con~nunicate from the inside of the tubing to the outside. This tube Can be operated from the surface~ open and closed. All of this i have des- cribed so far represents equipment actually installed in the ~ell. For this particular exhibit i have included an additional, piece of equipment. !t is called a dual flow check valve. The purpose of this dual flow check valve is to prevent flow in the reverse direction. It will permit flow through the tubing string in one direction only. It will permit flow from below up through the tubing~ and because it is located in sliding sleeves that are already installed in the 'tubing in this weil~ it is possible to have flow into the side of this tube from the pool in which it's positioned -- zn this case the State ~A~' pool -- it will also flow -througha check valveand the check valve will prevent any return of fluid from the R & R ¢OU~T 82~ WE~T EIGHTH AVENUE ~ ~,UITE ANC:HORAGE. ALASKA 10 11 12 13 14 15 16 17 !8 19 2O 21 23 25 tubing above the valve back into this producing interval in the State ~^" Dooi So we have a conaition permits flow in one directzon only'once~ the production ha moved to a position above this tool it cannot return either to the State ~'A~' pool producing interval in this to case or/the "E",'~F"~G'~ pools below. This will permit controlled simultaneous flow from two of these pools without any possibility of a reversed flow. It would also provide for control in the event production is stopped. Then there would be no flow, but there could not be any flow from one zone into another zone be.cause it could only go up the tubing to the surface, it could valve not go back through the:check/ to the producing interval, in this case~ the "A~' zone pool. i have a brochure on this tube., i~d like to leave a few copies with you. The primary purpose for showing you this brochure, it' has an illustration of the type of equipment that is us. ed. The title of this brochure "Artificial Lift as Applied · to the Multiple Completion Choke Assembly. '~ This is a publication used in a short course presented by Otis Engineering Company. If you turn to the second page there are some illustrations that -- ~hows on the left they call it a side door nipple. This is essentially the same ~tooI- as we have ins~ailed '~ t~a~ i call the sliding sleeve. It has~.prts to permit entry of fluid into the ,. ~ ~ .~.,.~ ~,Div. Of Mines &Min.. ,.~. ~,~. I b~ic~ion~ Inc. wt~n Ihe uncl~n~lng ~ Il m~y be ,'~x'oduc~l for Inh~'-comp~ny u~e enly. I · . . WEST EIGHTH AVENUE -- SUITE 277-4713 ANC:HORAGE, AL.ASEA 10 11 12 14 15 16 17 18 19 20 2! 9.5 tubing, item B is the check ~valve assembly, it is so designed that when it is landed in the sliding sleeve t~ '- ~-n._ougn it in one direction, as I nan flow can only pass '-: '~ · ~ have illustrated by this picture. Now this ~.-epresents positive control for simultaneous flow. There are other purposes for which this tube can be used but this is the only purpose that we anticipate a need for it in this situatior Q With this tool installed is there any possibility of com- munication between any one of the three intervals you've indicated there, the ~'A'~ pool or the "B", '~C~ ~D" pool o'~_ the ~'E",F"~;~G" pooi?. Can fluid from any of those intervals get into fluid from -- or the formation in any other intervals~ whether the well is flowing or shut in? A No, sir. ~en the tool is installed, flow can be conduc- ted only through this check valve from below or through. this check valve from the side. When the tool is in place flow cannot return and therefore flow from this tubing string cannot enter into the State V~A" pool pro- ducing interval. The' same would be true for the State once it passes ~'B","C"~'~D" flo~/past~this choke. 'It can only proceed up the tubing to the surface' it cannot go back past thi~ check valve into .the State 'L~~ pool. UNIDENTIFIED MEMBER OF AUDIENCE. Can i ask a question? Where is this check vaive going to be? A .' It's going to be located in the tubing string. ;. ~, ~ .~.,.~ ~IDiv. of Mines &Min.. ~ic~t~ ~n~. wl~h ~h, unde~nding t~t I~ m~y be r~oduccd fc~ In~'-comp~ny u~ ~ly. 277-4713 ANC:HORAG ~,, ALASKA 2 3 5 6 7 hA 10 11 12 13 14 16 17 18 19 2O 21 22 23 24 25 i~. Nabors, (By ~[r. Swan)/ in 'the ~7bsence of those check valves would the well -- welz~ t~ouzd there o~ any co~%%nunzca- tion between the varzous intervaz~? No, sir. i have previously so stated, i have an exhibit here that iilustrates~ i be~_~=ve:~ conditions, oz p~'essure in the well bore that will explain why this could not happen. You're' referring now to -- why don't you mark that next exhibit? Call this one Exhibit 2. Exhib it 2. This exhibit -- it's got a well depth versus pressure. This pressure data represents pressures taken on well ~Jll by a bottom hole pressure bomb, by running the 'bomb in each of the. three tubing .strings. The color legend on this' exhibit corresponds to the color legend on Exhibit ~i. For examp!e: the same color flor this curve on the right represents the '~A'' Pool. The color fo~_~ the "E~ "~ ~G~ pool~ and a sepal:ate color for the ~B~ "C~' ~'D" pool. The three curves on the right represent static pressures after a 24-hour 'Sliut in~ ~na 'this curve -- pressures from the surface --measured right down to a datum plane. I have ~h~e datum planes indicated by dotted lines. There ~s ~n.= datum plane at approximate mid-pay for the "A~ zone which actually terminates this B2~ ~'E~;T EIGHTH AVENUE -- ~UlTE ~ 277-~713 ANCHORAGE, 10 1 2 5 6 7 8 9 11 12 14 16 17 18 19 20 21 22 23 2~ 25 - !i - gm~aph of pressu ~ for the '~D'~ datum which is the terminal point for the pressure curve got the "B~ '~'~ ~D~ zone, and a~ "E~ ~F~ ~'G~' datum. which is the terminal point for that. !t may be inter- esting · ~o note that the slope of these pressure gradient _ n~e tubing curves is a reflection of the type of gluid in itself. The tubing -- the weight of the fluid adds~ pressure as you proceeddeeper, in cases where we have gas in the upper part of the tubing, the slope is steeper. than in the case of oil in the tubing. You will notice that the upper part of each of the curves is steeper than the lower part. Also I have plotted at the datum point the original bOttom hole pressure for each of these curve For the ~A" pool the original bottom hole pre.ssure was 2476. It is slightly higher than the 24-hour shut-in gradient. But since this is. the first completion in this ~'A'~ pool that is about the only difference in the 24-hour shut-in pressure and the original pressure. each o~ the other two pools you note a wider separation between the original pressure and determination of this 24-hour shut-in gradient curve. This is a combination of 'incomplete buildup of the~ pressure after 24 hours and the depletion of each of these zones by wells completed prior to completion of well ~/j'll. Now over on the left-hand side I have three curves ~ ~.., ~ .~,~ ~iv.. Of Mines &Min.. ,~ ~.~,'~. I b~Icartio¢~ Inc. with i"ne unc~'~'~ncl~ng thet It envy be reproduced for Inter-company u~o ~¥. I R & R COURT ~2~ WEST EIGHTH AVENUE 277-~7~3 ANCHORAGE. 1 2 3 ,4 5 6 7 11 12 13 14 15 17 15 19 2O 21 22 23 25 10 - !2 - ?_hat represen'~ flowing pressure gradients. Now in ii, ese we have meaaured prassures~ surface,T.D. , while the ~.,~a!! is f~ow~, There ] ..... o be .,~ to .... a ..... ~ en some adjustments fit the '~owing pressures a littld more precisely to what wa anticipate the operating cnnditions to be~ namely a surface tubing pressure of approximately i00 pounds. We see a surprising difference in the -' gr~m~ent there. I mentioned eari~er that gas in the tubzng would cause a curve to be nearer to the vertical plane' position~ and yet we see the ~:A'~- zone has a ~'~latter ',~sra{icnt. ~'~is is because another factor enters into the flowing gradien This other factor is friction to the flow. When we flow through, the .two-inch tubing which is installed in the '~A'~, zone at a higher rate that the ".A'~ zone produces, we have a higher ~o~ng' bottom hole pressure for that is string. This is the case wh'en that tubing string/pro- ducing the fluids from the :~.A~ zone producing interval through that two-inch tubing. This means the friction in this case overrides the h'igher gas-oil ratio that we have in the ,,.A~, zone which would iend t0 lighten it. The .. other two zones produce at a lower rate~ approximately i000 to 1200 barrels a day~ and due to the ~ac~ = '~ that the tubing is 1~,~ '~ ~r there is less resistance to friction and you will have a lower flowing bottom hole pressure. That is a co,non datum p!ane~ even tho',~hu~ there would be ~.., ~ .~,~ ~Div.. Of Mines &Min.. inc. wi~ the un~:~.t~nding ~ ii' n~y be r~:~:xiuc~d f~ Intei'-comp~ny u~ only. WE~;T EIGHTH AVENU~ -- SUITE 277-4713 ' ANCHORAGE, ALASKA 1 2 3 5 7 9 10 11 12 13 ~14 15 17 15 19 2O 22 24 A 25 no communica'Cion at this ~.o~.~'-. You ~ =L.~ can 'take for example ~he pressure in the long string would be a lower pressure than tn~ pressu~-e in t~,at~inS itsai'~ as indzc,~-ed here Now one o,= the purposes ~n us-~,o- th~s exhib{~- ~as to illustrate what would happen ~: we were to ~ ~ zn~tall this equipment that would permit simultaneous production of ~11 three zones thro-~~ the tubing strings We would have controlled pL-oduction through all of the tubing . strings. In .that case we would have a pressure point as indicated~ 1040 pounds. This would be the ~o~ing pressure, and since the surface pressure in each string would be essentially. I00 pounds or the separator p.='~essure we would expect the flowing, gradients fo~ all '=-~ ~= to follow this gradient here.~o~tl~s is a calculated point Obviously, we have not coding!ed the three zones to obtain this ~o~ing pressure~ but this illustrates a difference of several hundred' pounds of resistance' to flow of pressure that could be relieved f'~om~ the we!~= .~f we opened more than one string,of the '2-7/Sinchmbing at the same time we continued to flow through the ~A~' 9oo What does that lowering off .pressure which .you would achieve by commingling mean?. What do y6u accomplish by it? We would make a more efficient use of the available pres- sure to flow the production to the surface. The higher ! ~ ~__, ~ ~,~ ~Div. Of Mines &Min.. ub~ka~o~ Inc. with tt~ u~:le~an~ing t~t I, may be mixoduc~x:l R COURT ~EPORTE~$ WE~T EIGHTH AVENUE ~ ~UITE ~ 277-47~3 ANCHORAGE, A~AS~A 10 11 12 14 15 16 17 18 19 2O 21 22 23 25 Q A. gas-oil ratio in the ::A'": pool would be utii~ed to a more efficient purpose. We~ stated in layman~o -~, ~ -=-o~o~ would it mean then that the gas which is the source of your reservoir energy Id would be -- like in a co,~n~ingted state -- you ~ou be lifting more oil with that gas and fighting less friction That's right. And if you do not connningle it some of the energy is wasted in fighting friction? That's r~ght. ~And does that affect the producing rate 'by reducing this friction loss? Yes, certainly, in general terms the producing rate of one of these zones is proportional to the flowing bottom hole pressure. A reduction in flowing bottom hole pressu .would increase the flowing rate of -- of a zone. Now you testified that there .would be no communication. between any of these three intervals 'while the well is flowing. Is there a possibilit[y that there might be communication if the well were shut down for any reason? Not with the check valves installed oK with the sliding the' sleeve in/closed position~ the~e 'co~ld.:, not be a flow. The check valve installed would prevent any communication between the -~ that part of the tubing string and the zones below without the necessity for running wire line · ~., ~ .~,m ~Div.. Of Mines &Min.. ,.~ ~;c~tic~· Inc. with ff~e ur, cl~l.~mnc~ir,g ~ i~ m~,y be r~.'oduccd fo~' Intet-coml~n¥ 1 10 11 · 12 13 14 15 16 17 18 2O 21 .23 q q A noois into the well 'for closing of the sleeve. , At 'a~-~e previous nearing it was brought out~ T think~ by ouestions from one of the Committee that it might take some time to get a wire line operato-~~ out to close these sliding sleeves._ Is that t-.._ue~. This would eliminate that delay. There would not be any time "' ~ ~o~ the pressure ~oerhaps to build up to the point that it could conceivably cause a pressure higher in one of the tubing 'strings ~ that the others, in the case that you were unable to close the. sleeve in time that would betaken care of by the check valve. Is Pan American now intending to instali ch~se c~=ck valves so that there will be no possibility of com~nunica- tion whether the well is '~ ~!owing or is shut in either for a short period of a longer period of time? if this recommendation is approved, yes. So that the protection will be automatic and' will always be there in the well? Yes~ s ir. Is ~%his tool an accepted tool in the industry? Is it used widely? This tool is approved by regulatory agencies in = .~_ 0 Llt? or ~ive states t~or use~ and in t:hese.?articular states they are coramonly prorated states ' in. which production is restricted, ~ to market demand. 'This requires an additional part of the ,,, ~.., ~ ~.,.a wi)iv. Of Mines &Min.. ,~ ~o~,~. ,bllc~t~ In~ wt~ tl~ und~l~ndir~l tt~t 1~ m~y ~ r~f~ ~ot Intm'~rnp~ny u~ only. WEST EIGHTH AVENUE 277-4713 ANCHORAGE, 1 2 7 $ 10 11' 12 13 15 16 17 18 19 2O 21 23 25 Inc. with I%e unc~lm~ndl~g ttmt It, n'my be reproduced fm Inte~-comp~ny u~e ~ly. J / tool which is available ~,~° _ . ,~ don:t anticipate = need for that since wa are not subjected to .proration. · ' that C an you ~ .... ~ ' the ' a~qu=~ely nest se three intervals so/you know for statistical purposes how much each o~ the three intervals is contributzng to nne total production? Yes, sir. 'As ~e have well -)~! completed zt would only- be necessary to close ~ne tubzng on .the ..... '~e o~ r zOl~es and open the tubing at the surface with the check valve to make the flow test on the :~.A~ pool. For a flow test on the other pools it would be required that the check valve be' removed and the sliding sleeve cloSed opposite the "A" pool and then this particular tubing~.~thits associated produ~iDg'interval would be tested. The same would b.e tru. e.[for B, C and D p. rod,ucing interval after ~which..~ ~he ] check valves could be rerun and the well returned to its previous status. Will these tests be run if permission for this co~minglin~ is granted? Yes, this would be part of our provision Would be to take representative tests to satisfy the requirements of the Committee.. If 'there is any indication at any time from the well's performance that additional tests are needed, these could easily be performed? In other words~ you don~t have to perform the tests before this installation is made? 277-~713 ANCHORAGM, A~S~ Lace 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 A A Q Q A ,, ~., ~ .~v,r.~ ~IDiv. Of'Mines &Min.. ,ro~ ~,~,~. b~ic~:~'~ inc. wi'ih ff~ u~i~'~,r~Cling ~ it rely be reproduced for inter.company u~ ~¢~ly. j ' No it could be made -- ~' ' ne : '~ :,Re ues'~- ~ould be ~, rformed sero as nee"ded and it:s made and at any time thereafter_, /as desiz,ad by the C on~i t t e e. , As a minimum ~eco'~,.~,~endation what do you ,-- how often do- you recon~mend that the zones should be tested separately? i believe a six-month test interval would be adequate initially. This could be used for the allocation,of' production between 'the zones,, i'f there were some reason to believe a 'Subsequent tes~ before the end of the six- month period is needed this could be don,e, i also believ~ that if~ after a period of operation under this pzocedure the evidence shows that an extended time period between the tests was justified that it might' be reduced to a frequency as much as an annual test. Now so fa~ you've been testifying as to what has actually been done in well -fill. it is now producing from all thre~ inte~vaiS~ is it .not? Yes,' sir. But t~ey are seqregated? They are segregated. And ..... · (Fron Unidentified Member of Audience) Is this well #11 down in Kenai or dovm~" in .... in.. Anchorage? ,ks in Kenai. Well, now we get on to another question... MR SWAN: Uh -- now you've ~estified ~hat thiswill permit you to make a more efficient use of the gas which is the reservoir energ7 here? Yes, sir. is there a way in fu~ure~wells ~you can make an even · R & R COURT R~PO~TWR$ WEST EIGHTH AVENUS: -- SUITI~ S 277-47~3 ~ ANCHORAGE, ALASKA 1 3 4 5 6 7 8 A q 10 11 12 13 14 15 17 19 2O 21 25 wE)iv, of Mines &Min.. ur~en~ndlng tt'~t It may'be r~i:~xluc~ ~ Inter-company u~ only. more efficient use o~_ your reservoir enerev~ We believe that with ~n~ izmz~atlons of 9 5/$:' casing ~ha~ the ~ ~ ~ ~ ' . ~ub~no size co~Id be larger than we're able to install in this casing as ~ndica~ed in well ske'~ch for ://ii. For.examp!e~. a number 0f our wells already com- . p!eted have 3 i/2~: tubing instead of the 2 7/8'~ which we have indzca~ed in ~his wez!. We could put two strings of 2 7/8~' as i've illustrated in another well here. Would you have ~he same type of check'-valve in it? We could use ~he same type of check valvas~ the same type of ~est procedures We could p rzorm all of the steps that were described for well ~}it except to produce each of ~he three zones ~hrough ~ts own tubing. By removine the check valve in one of these strings and setting plug in this landing nipple it would be possible produce the State ~A'~ pool through this tubin~ string~by removing the pluS and closing, this sleeve and opening a lower -- lower sleeve in the same 'aubing string~ i~ ~ou!d be possible to close the State ~E~' ~F'~ ~[G'~ pools., We coul put a plug in the lower part of 'this long ~ubing string , and open the sliding sleeve opposite the '~'B producing interval and thereby obtain the tests on that producing interval. With ~he check valves in there again there would be no possibility of communication,between any of the ~hree R ~ R COURT REPORTERS 82~ ~EST EI~HTH AVENUE 277-47~3 ANCHORAGE, A~S~A 2 A 3 ~ A 9 A 7 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 - 19- intervals? No, s~r Once any product~.~ ~ .~-e ~ ~ ~ ~ ~ -'~ - . ~.~ en~e~ a tn~ cn~ck vazve it could not recurn e~-~ ~- or ,-n= tubing or out the szde door ~z ~n~ szzazng szeeve. Do cnese check valves .~'+ m=~eriaiiy impede the We have an estimate of one pound of pressure loss at the ra~es ~ve anticipat, e for well ~Jll, so there 'would be some restriCtion on the flow~ but it's not as serious a re- striction -- nothing to compare~ for instance~ with the restriction we have on the ~A~ tubing string on well f/il which is several hundred pounds. Weli~ here again with the -- with only the two strings in, would you,explain again why it is this is an even - more efficient -- I 'think you haven't ~explained -- .would you explain -- ? Well, i have calculated what the flowing pressure would be from the datum of the ~A~ pool to the surface. In a case where i have three strings~ three producing interval with controlled flow through the check valve at the pool and taking into consideration 'the reduction in. friction 'due to the larger ~ize of tubing and the aera- tion provided by the higher gas-oil ratio from the pool i have calculated that ~he mea~ pressure would be 880 pounds in that producing intervat~ which is a further reduction from the 1040 pounds that would be realized :~i¢*tio~, inc. with Yne ue~de~t~neling thet i~ m~y be reproduced fm Inte~-comp~ny u~e only. WEST EIGHTH AVENUE ANCHORAGE, A~S~ 10 11 12 13 14 15 16 17 18 19 2O 22 - 20 - with three strinss of ':-ubinS. in well ~';'12. e~,~iain is based on a '~e!~ siz,~ilar ho our" wadi -'~ that is, ~ we~_ tha~ has uh~ same ~°r°ducing c=paa~y._ for each ox n~e three pz~oduc~ng intervals that wa have in well -]J!i. I might point out that we do not anticisate be that it would/necessarily an econon~ic venture to remove all three of the tubing strings from ~etl -fill and replace them ~ith the two strings of 3 i/2~ tubing. But on fu- ture wells it certainly would be to our advantage to utilize this ss~stem in some cases where we have planned . for a ~ecompletion of weiis.,.thatare presently '~B~' "C" .~D~ and '~E~ ~F~ ~G'~ comptetio~into the '~' pool We covered this in the p~:evious hea~ing but just briefly is the different mechanical operation 'of running the ~nree tubing strings and se'~' .,~ ~tinz the necessary packe.~.s just more complicated than the operation of running the/two tub ing's t rings ? Yes, sir~ we have had some trouble with the three tubing string completion on our well -]Jl0 at Middle Ground Shoal. tn=t we have sevenmdoubts that We have had enough t~:oubte ~ =- our management will allow us to make another triple tubing completion. !n other 'words 'when you say some trouble that's an un,er- statement? Yes~ s ir. ' ~. ~ ~ ~IDiv.. Of Mines &Min. Inc. with the i~nc~lng ~t It m~y be n~.~'oduced fm Inte~.eomp~ny u~ ~ly.J ' 10 11 12 13 15 16 17 18 19 2O 21 q is the sue'face_ i:~staii=~uio-~ for a tr~L;ie~ string more complicated also?' Vas, szr~ at surzaca wa nave a waiznaad that contains three strings o-,- nu~_ng, z~erefore it requires one addi- tionai set of valves a.n the surface. hearing i passad out some ~.~.lustrations. Wxhibit C ~=na mxhibzt D. duced some of these exhibits~ Exhibit C is a picture of 'the wellhead installed on well You may note it has six valves stacked two on each tubing string, which is a much more complex arrangement completion that it would be expected with a dUal tubing string/ such as this illustrated on Exhibit D from the original hearing. In addition to the'wellhead valves themselves _ production we have complication of other surface/equipment; .we would have chokes~ wing vaives~ flow tides and manifolds that ,, would be one added set zor a triple aS, compared to a dual. Really the effect then of commingling as requested with these check valves for all practica% purposes is it ac- complishes the same kind of~ commingling that is now taking place at the surface with ti~e e×ception that each MCF of gas that is produced out of the well is lifting a little more oil if you permit commingling? That's correct. in other words~ you:re, getting a little more ~_~cient ~.. ,..~ ~}iv. of Mines &Min. In, c. wit'~ ~he u~:J~'~ncJing ~ I! mey ~ ll,~'od~ fo~' Inter-coml~ny u~,~ o~ly. WEST EIGHTH AVENUE -- SUITE 5 277-471~ ANCHORAGE. A~S~ 10 11 !2 13 14 15 16 17 18 19 2O 21 22 A - 22 - use of your reservoir energy by commingling and using this extra gas lift? Yes, ~ve were pointing---pointing out .in the discussion this morning that the life of the platform could be shortened. This might be an important point to consider.this case of'the higher producing rates. (From unidentified Member of Audience) Uh -- well where is this extra gas comin_g irom ? (B~ MR. SWAM)' Here a~a~=.o ~,,~ gentlemen, without knowin some of the questions that you may have, it's a little hard for us to anticipate. These check valves were men- tioned at the previous hearing. We felt' that since there wouldn't be any co~ningling while the well -- or any com- munication while the well was flowing, that they weren't' really necessary, but conditions being what they are in the Inlet there might be delays, we realize, in shutting :cot any rea- these things in if ~e had to have a shut-dorm = son.~' and we are willing to put in, these check va!yes, and this is our proposal. We didn't, go into any detail. it was also our thought that. probably it would be more efficient to comzaingle these simultaneously. Ho~eever, · realizing here we're .trying some -- an idea that may be new to you~ if the Committee. would prefer~ we would be happy to have an Order which would permit us to comningle from the '.'A" into either this or this but not bonn at the same time. After we~ve tried.it a while we probably would be .wanting to come back to you if we ,_e!t' we could achieve greater efficiency by con,mingling szmuz'aan~ously. .~ ~, ~ .~.,~ wDiv. of Mines &Min.. ,~ ,.~,~. I d~lic~t~o~, Inc. with the un4~n~ling ~ it rr~,/be mproduc~l fo~ Int~'-comp~ny u~ ~ly.J . 277-4713 ANCHORAGE, A~SKA 10 11 12 13 15 17 18 19 2O 21 23 24 QI But we could obtafl~ some benefit 'Chis way. Frankly '£ d like to have you ask the witness questions or express to us any doubts or reservations you may have on this. VTe '~" ' ~ ~nz~k that we have a way here to use our reservoir energy more efficiently in a way that cannot result in ' ~ ~ ~ the any con~unication between the three interv=zs aha re- fore can't damage any of the three reservoirs. ~. GiLBRETH- Mr. Nabors~ at the last hearing you testified that there was no co~,unication between pools here and subsequently we had reason to question if there is true packer separation. Has your company made any packer leakage testg since the last hearing? . A NO~ sir, we don't have any evidence that there is any leakage, ~. GiLBRETH. The tests that you have made do not show any evidence of leakage. Do they prove that there is no leakage? A Well~ thi~ is a matter that should be checked specifically for that purpose, and i don~ t think we~ve had occasion to cnck for packer leakage~ other zones than on the initial completion of our wetts~ at which time all of the equip- ment~ packers, the valves, the sliding sleeves and all of the equipment is tested on initial completzon zn se wells are fairly new and having 'been tested just recently i doubt that there is cause zor concern. ~t. GiLBRETH. Well~ this information was obtained from .. ~., ,, ~u,~ ~Div.. of Mines &Min.. ,,~ ~o,~,~. I~lc~:~ inc. wifl~ ~ u~ndir~g that I~ m~y ~ r~pro~uc~d for int~.coml~n,/u~,~ o~17. WEST EIGHTH AVENUE ~ SUITE 277-47~3 ANCHORAGE, ALA.,q KA 10 11 12 14 15 16 17 18 20 21 25 =ha~ there ~.~as reason 'Lo ,~.ue~tion 'the '.~-~-'~'ts~ and I your company "-' ~- wondered if-- ~ -- }~t. NABORS:~I~ch test did you have in mind? _ ~ "~ic f your c l oc~ .oz~ e o ompany ~he day after the hearing> and we wonder ~s you have any o~her zn~ormatzon that shows now 'cnac the paker is no~ leaking? A ! suspec¢ ~ha~ you may ~ha local office. cney~= "nad; cemenc bond logs~ enO' "were satisfied' when Chey sorma¢ion ,'~hat we?did have cement .bond tog: gave you the in~ , . ask~ ~.n rhino- a ~u- on lo~s don't believe in them myself. .~- You indicated on ~h~ flowing, gradients there that the ~.~.~=~iction inthetubing'was one of the things that caused the curve to swing to the right on the exh'i~it. A This is on the ~ poo! ~ GILBRETH' Yes~ on the ~L~~' pool. Would not ~ater do , the same thing? Water in the production? .A Yes~ we would expect some additional friction i~ you had three-phase flow in a~ition to two-phase flow. ~ GILBRETH: In the ~'~ pool are you ~Dt making water- now? ' A Yes~ sir. F~I 'GILBRETH: Do you have ' . ~hat quantity of water i's being prod[%ced? ~., ~ ~.,.~ wDiv. Of Mines &Min.. ~ P,~,~. Inc. wi~n the und~n~endlng I~t I~ m.y b~ repeoduced fm In~-compeny u~e ~1¥. WEST EIGHTH AVENUE 277-4713 ANCHORAGE, A~SK'A 10 11 12 13 14 15 17 18 19 2O 21 22 2~ 25 - 25 - A We have soma recent ~,~eL~. tests that we ara not quite . ~ ....,. sampler sa~sfzad w~h We are znsta~[.~ a ont~.~o~s ' .'- _ .... e our ~.~ z Ees~s in 'cn~ :ku~ure will be more reDresentaEive. 'Now we have a ' to the beach~ and this Szves us information on the amount of waler produced. This has ' e ~ ~ - o en the basis o~ -~:~ infor marion that we have filed with the Committee. ._1 l~ ~7~'o~'.~.,~s. Does that information show that water is increasing in the well? .A Yes, sir. It may be necessary to produce water to get the o il. Sure. ~k~. GiLBmETH' / These check valves in the Otis equipmenE what kind of a pressure differential, is required to' close the ' valve or to keep i~infrombacl~°wing? is i~ a matter of .one pound or several pounds or a hundred pounds or -- ' 1 pound or so, I think. A 1 pound ~' (From au'di~nce) ' i~A. LEm'/ They are normally closed. A Pardon? MR. LEE- They are normally closed. ,,_~ A !t takes one pound to open 'them then.. ~. LEE. That ~s right. In other words, when the seals are... Flow does not ~sturb the se~ls. You have normally closed checks. ~R. o,,~,,ewa~' He p~oo=oly should be swo,.-n.~ to be real. .. Would the commi~ee like to .... CHAi'P~fl~N' Will we hear more from him? IvY. SWAN' i think he should state his name. ; ~,, ,, ~,~ wDiv. of Mines &Min.. ,,~ ~,~,~. I blk~tion~ Inc. with the uade~ter~ing ~t~t it rt~y be mpe'ocluced fo~ ln~er-compeny u~e o~.I ' 10 11 12 15 16 17 18 19 2O 21 24... 25 or~.~z~:~L'~-ig- Woula you s~.:~"~-= your name for the records~. ~ll. ~?~'=~ kobert L. Lea. Otis E'~~-' ,'-~-;ng-__. . '~,~. ,yin '~" ~'~"~'~- ' '~',,~ " you '~ ' ~.~ted the .,_ ,,_~ inseai~z~'~ion in E-~itx.~ ~1 tha~ cna va!vas are normazly closed~ and Z.F ~'~ zno were shut in a~ Ehe sur.~.c ~ - _ 5~ tu'b~, o- ..... s~ e then bo~n va] ves woul'd ba closed down the ho le~ . zayre could not be flow from one zone to the other zone? ~.~BO~: Yes, sir. '~ e i don~t unde~stan~ what has happened ~R. Y~RSIAALL' ~, r d, betweea the last h'ear~ng and th~s hearing~ as far as the operatio of the sliding s_eeve goes? Wnac. is it -- why is ic now that th~ can be done with less effort: or in a more expeditious manner? A I said that as long as the well was "ftowing~ as illustra- ted on this exhibit~ there w. outd 'be no'chance of counter- flow between zones~ that we in~ended to.produce the wells ,continuously but in the ev'ent it was necessary to shut well in that we would close 'the sleeves so there could not be communication, until we were ready to produce it ~a~n .and we could open the sleeves. Now the question was raised 'by several concerning the '~ime interval requ~- move '~he personnel ~ :~ _ ~na equipment to the plat'~orm to ., accomplish this. This led me to believe there was concer~ about that time interv~!~ and -'" '' tnaE s the reason that ~ proposed that we insua~i the check valves. ~s wo be positive control at the moment the well is' sh~t ~.~, ~ .~.,~ ~Div. of Mines &Min.. ,;om ~.,~,.~m. I Inc. with lhe unc~t~nCllng that l~ n~y b~ nllc~oci~ fo~ In,er-company u~ c~ly. I 4 5 7 $ 9 10 11 12 13 14 15 17 19 20 21 22 23 25 1 ~.., ,,.~v,.~Div..' of Mines &Min. inc. with ~e unc~er~tan~llng tt~t It may b~ reproduced for Intet'-company u~e ~ly. it woul,~': also provide =~ - ' " '' us ~ .U~_0%~' ~Olt[col~ pOS-'~-'~iVe S/llUi~SlleO · 'flow control if that were needed.. x~".-c .... . in ~- ~ '~- ~ .' ~ ~no- one check valve in the '~A~ zone with-- pa~-don me: you:re replacing, one. si'za~ng'' sleeve with the ~ = ' cn=ck valve In the :~A" zone. A The siidzng sleeve wii~ ="~,~in~,~=~ in place. Thzs wizi be an added piece of equipment ~ ~ would be insta!~=z=d. ~l oWAN- Well, actuaz!y~ l<r. Nabors, isn't the sliding sleeve necessary befoffe you can install this? A This piece of equipment is called a side-door sleeve or This would be made u~ in the' tubing string and it's al- ready installed in the 'well. !t would be installed in the future. Ail that:s required is to run this tube which is availah.ie from Otis Engineering and set it in this siiding sleeve it would ~ ' ~ . p:~.ovza~a the check valves. ,l~t. ~%RSK.ALL: Would the sleeves ordinarily remain closed then in the State ~'A'~ Pool? A Yes, it would, it ~ould stay closed unless we ~ere -- I. unders:and i don't quite -- i:m not sure/-- it would be open when this check valve assembly is landed in the sleeve: and the flow could only pass in one direction. You have a port in the si~e and a check' valve that controls that There are hatches above and below. The check valve would permit flow ~nto this/tube '=" :z~_om the intermediate zones. There's a check valve at the bottom zz~at cont:['ols the ~ow up from the bottom of that sli~ng sleeve, so that both the lower part 277-4713 ANCHORAGI, A~$~A 10 11 12 15 16 17 18 19 2O 21 24 25 Q of t. he tubing is controlled by a check valve and the side of the tubing t'hat is ported to the "A" znne will also be controlled by the different check valve. (FROM UNIDENTiDIE. D ME~ER OF AUDIENCE)-' Is that --- is that --- just one one well dorm in Kenai Or all of them? WILLIAMS: I'm sozry. Mr. Vonder Ahe, I appologize. . - _ nna~ Ehose valves F~ VONDEK AHm~ ~ 7s it my understandzng' '-~ are installed now oz will they be ~nsta!led on future completions A They have not been installed now'. They can be installed at any time.' . ,. · PSl. SWAN' Or they can be instailed~ ca,m<t they Fred, in · the one that's already completed? ~ e A zh y can be installed in existing equipment already in ~nzs we ii. i~.vONDEK~AHE: Does 'that require pulling the' tubing -- A No ~ sir. Ffi~. VON'DER AHE:--, or can you, do it on this equipment? Just run it on the wire line. F~.GILBRETH: Fred, are you advocating this now as a means of installation A Yes. ivff%. GiLBKE'TH: You will be doing this -- that ' 'the A I would think fir you prefer/check valve installation ~ this would be part of your proof. MR. LARSONo i noticed in ~that exhibit -- i guess you would call it 3 there -- you haven't labelled it -- you made a ~.~, ,, .~,~ wDiv., of Mines &Min.. ,,o~ ~,~,~.~. I inc. w~th th~ ue,de,~tenC~ing the~ . rn~y be reproduce1 fo~ Inte~-~omp~ny u~e ~'I' t~. COURT R-F. PORT~'R$ WI~GT I'-'IGHTH AVENU~ 277-4713 ANCHORAGE, A~SKA 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 25 statement that those ~,gera 2 7/$:~ s~ringof .-ub:,,o.~ z,~o ans.~ v believe yogi meant '~-~'~-to be 3 i/2 ~nese could be any szza. it_ ~as not ~,~':-e~,~d_~ .oarticular width but we would anticipaue ins+~~,a~___~.o 3 I/2 tubing. ...... ~- e ng ~x L.ARSON' GottenS back to =h se we'll tests. Ho%,~ ~o do you think a well would have to be. flowed to get a representa- tive test on flowing? fairly i 'think we are getting a/~_=p~esentative test in 24 hours. i~ve looked over tests since, the last hearing, i~m con- vinced that the Sas-ell ratio of I100 is still very .... ~eature realist~n ~ would not want to, preclude any test staff that the Con~ittee/thought was necessary to obtain repre- sen==~t ive tests F~. LARSON- Weli~ here's a ,~.~uestion. . Vou,~flo~in gradient.on your. ~A~ string as you show it here~ why is it steepe thsn it would "-eu through your two strings os= 2 7/8~ -- no~ ~-~{~ this is two .strings of 3 1/2 --would this not be imposing addi- tional back pressure on the ~e!l and cause a }i=~~ in the type of production we~d se~ in tha A yes, but' it could ba tes~-e.=~ v. through one of the other tubing strings at th_= back pressure, or you could establ~ a producing rate versus pressure for each of the zc. nes, and d.ra~ up, a curve that ~^:ould be adjusted to :fit condi- tions o'f. ~'=low. This has bean in states where proration ~ ~,, ~ ~.,~.~ COiv. of Mines &Min.. ,~ ~.,.~o~. b/;ca~'~ Inc. wi~ 1,":} .~,r,~3.~'~er~in~ that It rn~¥ be mpeoduced for Inte*.compeny usa onllt. 277-4713 ANCHORAGE. ALASKA _sh 10 1i .12 13 14 15 16 17 18 19 2O 21 22 23 24 25 is =.~o!~_ed o ~ ~-o ~ is a ~n~ ~,ro~ction of cot ~a:ive r~.snt~ ~ ~ .~ .,- ~ ,~ ~ ' , ~ .:- - ~ ~ ._ can,o;:'°v~ ~n= t~szs than you :.eouire ~o ~ ~atis'~ed ~o~auzng ~ oroduction to these znczvaoua! zones accurately. CHAi~L'!N'' Anythivg ..=~,,,,~-~.,.o - . - ., ~ ....... ~ We have no tur~he'~ cuestzon Hr. Swan? I thank you. i ~l. Si,,TAN~'/ have,to take part o~ the resDonsibil='-~, z~y zor' not having gone zn=o this' as thoroughly as we should have st the pre- in ~his 'field vious hearing. We do feel that anything we can do/t° use our reservoir energy as efficiently as we can should be done.. As we talked about it in the, previous ~ea=~inS~ economics is a _'fact of life; you just can't get~ away f~o~,.~ ,, it up here in ...Al=~-~_=~,.~ and I think all of the operators are working as hard as they can to figure out a mo.,.e e~zi~nt w:~y to do' everything they're -~oing.. We think this is. a more efficient way. We ~-i~,.n,~ ~- it can't posszbl and can use the reservoiz energy more efficiently , damage any ~f the reservoirs /and ~e~d like to have tn~ C0pl~mittee enter an order permitting us to commingle in what we have now, and permitting us to make application for Administrative approval .... %.. m future wells. Maybe i should ask the Committee.~ do./o~,,- ,, 'nave any real reservation -' ~oout ~ermitt~ ~ ' Ano us to commingle ly or not. We feel there is. no real difference~ but we ~,,~ou.ld be willing to try it on ~ne other baszs first and see how it works. Do you have any or 'would you care' to =~ -- =xpress an o~:inion on 277-~713 ANGHORAGE, A~SKA 10 11 12 14 15 18 17 18 ig 2O 21 22 '23 24 25 ~,::~,-~=,,, C.~~ wa go off ':~ ^ rec. '-~ fo : ' "- ...... ::~,~.::~ Wa may have a q~estion oz ~wo o~ the mecl~anical set-~p there Ma. Nabozs. ~. Oilbzeth? ,. =~"~ , with the Scllematic diagram r=--~=~-'~ .... ~:or examoieo is it necessary you've shown on -- we!i~ ~,~o~ i~ _ to have the sliding sleeve open for the production to enter through the valve? YOur diagram shows the production entering only ~nrougn the valve itself aha not through the siidzng sleeve. A Well~ it wasn't convenient to draw this exnzbit '~o snow 'that. It would be zni:encec oz course to usa 'Chis iilus- tration I've. sho~n you more' clearly to show ~.ow this tool . is landed in the slid"- . _ z~g sleeve, and it is actua!~ packed off on both ends with '~= ' ~ _ une opening znthe ~ente,~ part here Here .actually is the '~ " valve .se"ction ~- cn~c~ . ~ little white thing~ the check valve, and the~e~s a little round. section in the bottom~ and between the packing fluid only . . . enters through the side :'~ uuor or the port. Io~ .packing through this check valve into the canta~. !~.GILBRETH' Does the cn~ck valve nan s~at in the s lzczn~ sleeve? ~ Yes right in the ,, ~ -,=~,~ sleeve. · %' .~_~ ' Nfiq. ~=~.o~~"°e~'~' May. ~ ask how many wells you would put ~n~s equipment into in Middle Ground Shoal Field? <?~> i , ~.~, ,, ~,~ ~,Div. of Mines &Min.. ,~ ~o~,~. I ~icat~or~ Inc. with the ur~..et~l~;ng that i~ mey be reproduced fm inter-company u~ ~.] WIf~$T EIGHTH AVENU~ 277-~713 ANCHORAGE, I0 11 12 13 15 16 17 18 19 2O 21 25 We have ',-our o zzve fairlya"'°°d prospecus a'c ?'r.'_cr2ze Ground Shoal ~ e~-e are we are 'eot too l{~--~_~.e.: '}7 '~o~ need. We are down 2o t::'.e ::A:~ tas~ed very ' 8 . ~ ood in {-i. ~:A~: and ~,~' 7. N~ LARSON- Have "-~ = '- . t~::e ::A':: . -, . ,=n~y been ueste~ in '-- zone9 &:,. 5 and 7? A No. /+ has. The others are 'indicated productive b~ loss. · ~ ~ , ~. LARSON' Do you have per-£orations in any o2' ~:,A~'zone we lis now? ., A .~i,.N.....0'sir, /' none open except in the ~i3 that is being taste · ~.'.,'~ d .~,'~ 1 ! ' A well? H&. LA}~SON..-}{~-4 was tested 'too, you say? We 'have ·some ~eo~s on initial completion o-F the well on /: Pit. LA~:,SON- .Are there so'ne perforations open zn that A i believe they may have been open hole tests rather than perforated. We have some 'wireline £o.rmation test tools to evaluate that. PLp GiLBiRE~{- !ns'olaf ,as your plans would anticipate ., comPletion, if this is approv'~d, would it work a hardship on-Pan .American , ~' .C ~ . - ' ,'-,_ the Committee did choose :cot a '~r, zal period to test/observe just this in/one of the commingling' groups' Do you mean . in just one of the w~ils-or just be~ween.,.the --- say the ~'A~ zone an'd .... ~ ,. ~..~ ~,Div. Of Mines &Min.. ,,o~ ,o,~,~. lica'i'i~'~ Inc. with the ~t~ndlng that It may be reproduced fo~ Inter-company ua only. COURt REPORt~'.R$ 277-4713 ANCHORAGe. A~$KA 10 11 12 14 15 16 17 18 19 2O 21 22 23 2~ 25 ~.~o:~,',z~{' v~--s one 0%: 'cna comminglingg~oups This was cert~ '''~v ~_ . ' _ ~=~_y ~i'thin ou~- rec~uest We d like ~o see you satisEied. WEST EIGHTH AVENUE -- SUITE 277-,~713 ANCHOi~AGE, ALAS~ ~, ,, .~,~ ~,Div. of Mines &Min.. ~. ~,~,~. [. Inc. with fl~ ~t~lln~ ~ 1! m~y be r,,~pro~l~ los' Inler.~Oml~ny u~ ~¥ I icl G'~': ~'~' ~'"?'''' °'" ! ~ "- ' ' . ~'.~x,.m~n Wo,,. d ~= work a hardskio_ . , if you xzd~''~~ ,, get z'c' ~ zn' both groups, initially.. i don't think i~ would. ~t. SWAN- /if it wou~a r.aiieve your mz~d, ~er,d be pe-r-fac'c ' ~a~ way zn fact~ it - ~ '~'- ~y haopy to do it '-~ "- , . m~g~= be just as well s~ce ~e a~ trying some''-~nz.~s'~- new here to do it that ~ay and see l.'.now it works. If it works, ./ wecan come back in six months or a year ~ndexpandit. A i~d like to make this point. We have in mind some work on some of our wells. At the time we work on the wells we 'would like very much to recomplete the '~A~: zone with two tub ~ ~ ~ ' ' -no strings so ~e would like a defznzte provision for commingling fo~~ .~uture wells. ~ ~..~,N- One more point You raised ~h= packer leakage' test. We feel that the packer leakage -- your 'Rule 2!-53~ which says subsequently zz packer leakage is suspected~ t~eeonmazutee may request the operator to provide '~ ~ ~ : pEoo~ oz adequate and comp!et~ separation of the pools involved ~n the comp!etions~ or, make a , packer leakage test. We feel that we are subject to this require ment at any time and certain we ., .~ne _ ly would intend to saris-Wy" Comm===ee. Any ~ime it looks like -~ or you z el that there be packer leakage you have the rzgnu to require it. ~R. GILBRETH: ! merely raised the point, Mr. Swan~ because 'it's information obtazned azu=r the last hearing on ~,. SWAN- Well if ~e haven't satisfied you on that certa~n~_y keep at zt ur.,u~z we do so ~-'~ ~ Y'"~'-"~'?~° Anyth; ~' lee? Mr. ~ . . - ~ ~ a quest n. ~ on ,n~ basis of wnac you h~ve to~ ~ us won t ma~e sge~ifLc -- 5 specifzcally puz~ tubzng from ',these ceztazn wells and do not have .m,-,!e ions in : " ~ any co~..~ t mzna until you go in to work the'm over~ =o 7 that right? 8 A No~ we tnznm that we may elect to complete one that is not required 'co be wo;:[qe~ over for some other purpose 10 beszo~s une dual compzetionor multiple completion. 11 FP.. LARSON' I don~t have anyuning else 12 13 CHAI~f%N' ' Anyone.else? iVir. Swan? ~t SW.AN Ba..r~ razses a point he~e. H says that ha didn't understand me clearly th'at if 'we are 9ermitted to commingi 15 one Or the other and not 'both simu!taneously~ we will be .per- i8 17 fectiy happy with that right~ but~ at this time wa don~t know. We might get more beneift out of commingling in this st'rino~ in 18 19 one well or in this string in another~ or we might want to try this one for a while and then snu~, it in and try that. one. We 2O 21 23 2~ don:t want just the permission :.t..:g,~'~. commingle in just one of these two. We want both of them~ but we~!i only commingle in one at a ,, time· is that -- clear? Apparently there are ho. more questions. Any CHAi~&N' / statements from the ~ ~' ' ,:~u~ience ? With . . cnac ~e Ii , .. conclude this hearing. 25 --- End of tlearing --- . ~oo~, ~ .~.,~ ~Div. of Mines &Min.. ~lic~t~o~ Inc. with ifm uec~lmit~ncllng that l~ m~y be r~proctuccd for lnter-c~npiny I AFFI 'VIT OF PUBLIC A IOH STATE OF ALASKA, THIRD JUDICIAL DISTRICT, ) ss. being first duly sworn on oath deposes and says that .... .s...h..e. ..... is the.~.e--g...a--1-..-c---1--e-~k- ........ of the Anchorage News, a daily news- paper. That said newspaper has been approved as a legal news- paper by the Third Judicial Court, Anchorage, Alaska, and it is now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all of said time was printed in an office maintained at the aforesaid place of publication of said news- paper. That the annexed is a true copy of a ..]:.e__~..a..]=_..n..o___t:_.t..e..e....~.6..90 as it was published in regular issues (and not in supplemental form) of said newspaper for. a period of ...t:..h..t..e..e. ....... insertions, commencing on the ............ day of December ,'19 67 , and ending on the ..... !_.8..t:..h. ...... day of of .D..e...c.?.?..b..e...r. ............ , 19_.6..7__.., both dates inclusive, and that such newspaper was regularly distributed to its subscribers dur- ing all of sa,id period. That the full amount of the fee charged for the foregoing publication is the sum of $ 37.50 which amount has been paid in full at the rate of 25¢ per line; Mini- mum charge. $7.50.,,.:: 7 )_: :')...G:: ~:.:::~.. ~,: ~:.~.~.~,. Subscribed and .SWorn to before 18th, ;/,,~ December me this ....... :-a~¥ ...................... , ......... the ,State ,o~ Aias'k~, Third Diyision, Anchor~.ge~ A~ask,. MY CO, MM!SSi'ON EXPIRES ..................... quest he'a~d , cannot be ~,endti~d, FORM SA- I B 125.5M 8/67 MEMORANDUM TO: '1-' 0il and (;as Conservation Committee State of Alaska DIVISION OF MINES AND MINERALS FROM: Thomas R. Marshall, Jr.~ Executive Secretary Oil and Gas Conservation Committee DATE : November 21, 1967 SU,BJECT: Conservation Order #56 Commingling in the Well-bore MOS #11 Pan American Petroleum Corp., Operator Testimony was presented on this conservation order at our November 14 hearing. On November 17, I received a phone call from Art Piper in Denver requesting relief for the MGS #13 well, similar to the relief sought by Conservation Order #56 for MGS #11. He maintained that the "A" zone in #13 was non-commercial and that there.is a repeat section of the E, F, and G pools and a normal section of the B, C, and D pools. Testing is in progress on this well, but the log analysis indicates an exceptionally high productivity in the repeat section. Yesterday (November 20), Floyd Krebill, John Eaton, and Ralph Crews, Pan American's attorney, came to the office and requested reconsideration of Conser- vation Order '#56 and administrative approval of commingling in well #13. I informed this group that we are opposed to the affirmative on Conser- vation Order #56 because it appears an even chance that damage will be done to the reservoir in view of the increase in water production as indicated by Krebill's statements that same morning. Also we feel that the "A" zone in both wells would very likely be commercial zones and, further, that granting the order would serve only to increase individual well productivity in a short term sense. I have informed Pan American that they are free to apply for an exception for well #13, and we will consider the application on its merits, preferably after testing of the "A" zone in well #13. TI~/jw cc: Oil and Gas Committee Members PAUL F. ROBISON KENNETH McCASKEY JOHN R. STRACHAN ANDREW E. HOGE RALPH G. CREWS ROBISON, MCCASKEY & STRACHAN ATTORNEYS AT LAW 921 SIXTH AVENUE ANCHORAGE, ALASKA 99501 November 2,~ , ~ 1957 TELEPHONE 272-9446 Alaska Oil ~ Gas Conservation Committee 3001 kOorcupine Drive ~nchorage, Alaska ATTENTION: Mr. Thomas 1,/~arshall, Executive Secretary Pie' Pan American Petroleum Corporation MGS 17595 #ll, ~',,'~id. dle Ground Shoal Field Dear i'~'lr. ~iarshall- Pan ~:~merican :Petroleum Corporation hereby requests that the hearing had in this matter on November 14, 19~'7, be re-opened for the taking of additional testimony and in support of its request would, inform the Committee as follows' 1. No decision has been rendered, in this matter. 2. Subsequent to hearing and prior to decision of the Committee, additional evidence has become known and available 'which should be considered by the Committee before an Order has been rendered. 3. It may also be necessary or desirable that the evidence and. testimony had. at the hea~.ing held. on November 14, t9~7, be expanded, clarified or supplemented in ordier that the Committee may make the proper decision in this case. If and. when the hearing is re-opened pursuant t.o the request made as of this date, Pan ~imerican Petroleum Corporation respectfully requests that the Committe.e and the parties enter an order continuing the said. hearing to a time interval of December lath to December 22nd:, This date would, most likely coincide with the hearing on ~,~obil Oil Corpora- tion's application for an order prescribing field rules for the Niddle Kenai Pool of the Granite P~oint Field, which matter is ostensibly pre- pared for hearing on approximately these dates. Pan American's request for re-opening of their application could be heard immediately follow- ing the aforementioned request by ~',/[obil Oil Corporation. Very truly yours, PAN ~:~ERICA. N PETROLEU~,~ CORPORATION RGC:rw By ~alp~,~G.Crews"' , , Its ~:~ttorneys Il/it LIf. I'[IiDiLI.~ lYl/"[IL--~U~ ; ~56 · ':-!~iI -~ INSTRUCTIONS' TO DELIVERING EMPLOYEE ~' Show to whom and r--1 Show to whom, when, and I--i Deliver ONLY ~ when delivered . LJ address where delivered : L.J ,to addressee -- ~'~r' ' (Additional charges required ~or these services/ RECEIPT ~':'~i'!:~ ~ Received the numbered article described below. REGISTERED NO. ~ SIGNATURE OR NAME OF ADDRESSEE (lVlu~t always be~lled in) CERTIFIED NO. 115242. '""'~'~ ,. k' sIGNATUREq ADDRESTEE'S AGENT, IF AN . DATE DELIVERED "~'[ ~HOW WHE~VERED (~lyJfrequeste~ __ . . . ~ ~6~71~8-~ GPO C-") SENT TO POSTMARK )~. H. Co jamiSon(AClanttce Rtchf,telc~DATE STREET AND NO. - - ~ ,, .. O, Po Box 360 .." ,,~:~-~ - ~ :._ =~ '-.. ~ 0., STATE, ~D ZIP CODE ~chorage ~ 99501 ..=~x~ .. :/ EXTRA SERVICES FOR ADDITIONAL FEES ~ ~' ~.~ Return Re~ipt De/]ver ~o ~o~ to who~ a~d gate gate, and ~ere - . ~deliveredlO~ lee POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL RECEIPT FOR.CERTIFIED MAIL--30¢ SENT TO POSTMARK Mr. R, W, Killen(Standard Oil of STREET AND NO. '~. . ~ O., STATE, ~D ZIP CODE A~cho~a~e s 99501 EXTRA SERVICES FOR ADDITIONAL FEES . Return Re~ipt Deliver to ~hows to whom Shows to whom, . Addressee Only . w.4 ~ '4 and date date, and where delivered delivered ' ~ 50~ fee POD Form 3800 NO INSURANCE COVERAGE PROVIDE~ (See other side) .Mar. 1966 NOT FOR INTERNATIONAL MAIL ~-"': a." ' ~. :~-~ · INSTRUCTIONS TO DELIVERING EMPLOYEE L',".?" :.i!..: ! F'--~/S,.how to whom and I----I Show to whom, when, and Deliver : '"',--:'": *!' L=J when delivered L._J address where delivered I I to addressee ONLY "- ~ . - (Additional charges required for these services) Received the numbered article described below. }mmm~ REGISTERED NO. k SIGNATURE 0R NAME O~AOORESSEECAI~.Jtalway,~¢fil~d~z) :i2.5 ..... : ' ' -:: ."~~__-~"~"'-'---~~:~./ i~Bl~ /l.,')Z/-f,~ /~. S/GHATURE OF ADDR~.~.SEE'S AGENT, IF~ANY ('4 07/'WHERE DELIVERED il- -* c_s,ol - "' ----., 5-.INSTRUCTIONS TO DELIVERING EMPLOYEE IF-M/Show to whom and I-"-I Show to whom, when, and I--I Deliver ONLY I~1 when delivered I I address where delivered I I to addressee (Additional charges required/or these services)' RECEIPT s Received the numbered article described below. REGISTERED NO. ~k SIGNATUREMr. ORwoNAMEA.OF ADO'RESSEE(M~ta/ways~efif~dfn)A~ms treng CERTIFIED NO. F'' Sinclair-Oil and Gas Company SIGN U OF A ,ESSEE'S ' iT, IF ANY IHSURED NO. 2 crc [[; 5 : i967. i'::' ;' :/'..::'.' ·.- . 16 .. ... .__._~ ,. ---, :~-7- RECEIPT FOR CERTIFIED MAIL~30¢ SENTTO Mr. W, *A. Armstrong 5 POSTMARK '~' ,OR DATE STREET AND NO. ,. o., STATE, ^.~ Z.F&-DF- -' ............ / ?.. Anchorage, Alaska 99501 EXTRA SERVICES FOR ADDITIONAL FEES and date date, and where k--~ ~~' & / delivered delivered ' ~'0~ fee ~ 354 fee POD Form 3800 NO INSURANCE COVERAGE PROVIDED-. (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL ~56 . _ . -. INSTRUCTIONS TO DELIVERING EMPLOYEE IShowto whom and I-'-1 Show to whom, when, and r'--i Deliver ONLY when delivered I I address where delivered :! I to addressee (Additional charges required ~or these Services) RECEIPT . Received the numbered article described below. ~EG!STE~ED NO. ~NO. 115241 INSURED NO. DATE DELIVERED SIGNATURE OR NAME OF ADDI~ESSEE (Mmt always be filled in) SIGNATURE OF ADDRESSEE'S AGENT, IF ANY SHOW WHERE DELIVERED (o?dy if requested) ' e55--16~71548-7 GPO' RECEIPT FOR CERTIFIED MAIL--30¢ SE.T TO ~. T. S· Cate (Shell Oil Co.) STREET AND NO. . P.o. STATE and Z~P CODe Anchorage ~ 99501 Return Re~lpt Delive ~hows to whom Shows to Whom, Addressee and date date and where ~ ~0~ fee ~ 35~ ~ee ' ;j .t POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other si~'exu) Mar. 1966 NOT FOR INTERNATIONAL MAIL , --~ INSTRUCTIONS TO DELIVERING EMPLOYEE F'~--1 Show t0 whom and when delivered j---J Show to whom, when, and Deliver ONLY address where delivered ~ to addressee (,4ddJtJonal charges required for these services) SIGNATURE OR NAME OF ADDRESSEE (Must always befilledDO CERTIFIE0 NO. 115240 ~ SIGNATURE OF ADDRESSEE'S AGENT IF ANY INSURED NO. ~ r-'7~' ' '- ' -, - .. RECEIPT Received the numbered article described below. RECEIPT FOR CERTIFi,-'O' MAtL--JO? SENTTO Mr. George M Selinger POSTMARK · OR DATE Skelly Oil Company ' STREET AND NO. P. O. Box 1650 - P. O., STATE, AND ZIP CODE Tulsa, Oklahoma 74102 , EXTRA SERVICES FOR ADDITIONAL FEES - Return Receipt Deliver to ~hows to whom Shows to whom, Addressee Only . and date date, and where - ... deli .... d delivered ~ 50~ fee POD Form 3800 NO INSURANCE COVERAGE PROVIDED--- ~ee other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL ,.,-~,.;.-~. ~L - . - - - i~TRucTIONS .T.O: DELIV~I-HG E~LOYEE ~w to whom and ~_~q~o whom, when, and ~ Beiiver ONLY ~ when delivered - ~ address whore delivered . ~ to addre~ (Additional charges required for these services) j ~ RECEIPT Receh,ed the numbered,~i.'qle_described below. - REGISTERED N0 ' :' . SIGNATURE OR~'~:~!~DDRE$SEE (Must,always befi.',led .... · .._. CERTIFIED ,0. z~5~38 o55--16~7:. ~8-7 GPo RECEIPT FOR CERTIFIED MAIL~30¢ SENT TO POSTMARK R. O. Dunbar (Phi11±ps Petroleum CO)Da - STREET AND NO. ~ _ . / P.O. Box 419 P. O., STATE, AND ZIP CODE Anchorage, 99501 · EXTRA SERVICES FOR ADDITIONAL FEES .~.~ Return Receipt Deliver to ~hows to whom ShoWs to whom, Addressee Only "?/..~ ..... -' and date date, and where delivered delivered '\ LJ 50~ fee - . ..... ~x~o¢ fee V~ s~¢ POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- See other side) Mar. 1966 NOT [OR INT[RNATIONAL MAIL 10 11 12 14 15 16 17 18 19 2O 21 22 23 24 25 .~r)iv_ Of Mines &Min. HEARING BY THE OIL AND GAs CONSERVATION COMMITTEE ON A REQUEST BY PAN AMERICAN PETROLEUM CORPORATION TO PERMIT COMMINGLING OF OIL AND GAS IN M.G.g. 17595 WELL NO. 11 Conservation File No. 56 · . Hearing held in the ,City Council Chambers, Z. J. Loussac Library, Anchorage, Alaska, 9:30 a.m., November 14, 1967. Continued on' December 21., 1967. (See separate transcript.) R COURT REPORTERS 277.4715 ANCHORAGE, AI..ASKA 10 11 12 14 16 17 18 2O 21 22 23 -2- PROCEEDINGS MR. WILLIAMS: This is a hearing on a request to Oil and Gas Conservation Committee by Pan Am Petroleum Corporat to issue an order pursuant to the authority granted in Section 31:050:030 of the Alaska Statutes granting relief from conserva- tion Orders No. 44 and 53, for M.G.S'. 17595 Well No, 11 to permit commingling of oil and gas produced from M.G.S. Pool "A':' with and gas produced from other approved commingled pools in the Middl Ground Sh~oal Field; and that Conservation Orders No. 44 and 53 be amended to permit similar commingling in other wells to be ap- proved as an Administrative matter without notice or hearing. This hearing was properly advertised on October'27, 1967, giving the required ten days legal notice. Sitting here on the Committee with me 'today is Mr. Marshall, the Executive Secre- tary; Mr. Vonderahe, mining engineer', I'm sorry, petroleum engi- neer member; and Mr. Kugler, petroleum geologist member; and Mr. Larson and Mr. Gilbreth, petroleum engineers as advisors to the Committee; and we ~also have,Bob Ha,trig, Mr. Hartig, as our legal~ advice - - Legal advisor, iI'm sorry. Dale Wallington, the other membe~r of the Committee, is not present. With those preliminary remarks, unless some member of the Committee has something to add that I might have forgotten,~, we will call on the Pan American Petroleum Corporation people to present their case. MR. CREWS: Thank you, Mr. Williams. My 'name is Ralph Crews and I'm local attorney for Pan American Petroleum ,~, ~, .~,~ ~,Div.. Of Mines &Min. R & R COURT REPORTERS 825 W£HT EIGHTH AVENUE; ~ BUITE; · 277-4713 ANCHORAGE, ALASKA 10 11 12 15 16 17 18 19 2O 21 22 25 -3- Company. On my right here is Mr. Oscar Swan, whom I believe all of you gentlemen know from your past association before the Comm- ittee. Mr. Swan will introduce Pan American's witnesses and will carry on the case. Thank you. MR. SWAN: Gentlemen, perhaps it would help to make just a brief opening statement here. If you will remember our previous cases on Middle Ground Shoal, the "A'~pool with which we're concerned here, at the time we '.put on our previous testimony we had only rather sketchy infor'mation on it, and. as a result of that, the Committee put it as a separate pool., frankly we felt tha there was a possibility we had either a §as pool here or a pool that had a very high' gas-oil ratio. 'Previous witnesses pointed out that we were not sure. They also pointed out that sometime we were going to drill a well and we were going to test the "A" pool and find out whether or not it was a'high gas-oil ratio ~pool or a gas pool or what. And if we ~f0und out that we felt that it could be commingled with the other .pools we. were going to be back to see you, and this is just,what's happened. We have drilled a well, we · ~ it is have completed it in the "A" 'pool, and we have tested it, not a high gas-oil ratio pool, in our. opinion. We think that not only can it safely be commingled. We think that we 'can use the reservoir energy in these, pools more .efficiently by permitting it to be commingled, as we will point out later, and that's just why we're here. We have got the information now'that we told you about a year. ago we would have. I have one witness, Mr. Fred [~.=~.~.~,.~Div. Of Mines&Min. & R COURT REPORTERS WEST £1QHTH AVENUE ~ SUITE 277-4'71:3 ANCHORAGE, ALASKA 10 11 12 13 14 15 16 17 18 19 2O 21 29. 23 24 25 Nabors. to proceed. Unless the Committee itself has some questions I'm ready MR. WILLIAMS: Proceed then, Mr. Swan. FRED NABORS being first duly sworn, testified as follows on examination BY MR. SWAN Q A Q A Would you state your name? .Fred L. Nabors. By whom are you employed, Mr..Nabors? Pan American Petroleum Corporation in it's Denver, Coloradc office. What position do you hold with them? I 'm. a' Staff Engineer. Have you previously testified before 7this Commission? No, sir. Would yOu state for the record briefly what your education as an engineer has been and what 'your experience has been', I graduated from Texas A & M University in 1942 with a B. S. Degree in Petroleum Engineering. After three years in the Corps of Engineers during World ~'.War II I was employe . , , by Pan~?American Petroleum Corporation and have been em~ ployed by .them ever since. I have performed reservoir engineer'ing, drilling and d~velopment engineering, .in a number of different locations in all levels in our orga- nization, including the general office in Tulsa, Oklahoma. 82S WEST EIGHTH AVENUE -- EUITE 277-4713 ANCHORAGE, ALASKA 10 11 12 13 14 15 16 17 18 19 2O 23 25 Q A q A Q -5- In 1957 I was promoted to District Fngineer responsible for all the engineering activities in a production dis- trict. I served in a district in East Texas, and also served in our Farmington, ~New Mexico district; in these assignments I have worked on the preparation and presen- tation of testimonys for regulatory commissions, in the States of Texas, New Mexico, Utah, Arizona and Colorado. Following that'I was assigned to the Rocky Moun-~' , rain Division in Denver. The past two years I've spent most of my time working on t~ Alaskan operation. Mr. Nabors, are you familiar 'with Plan American's operatio~ in the Middle Ground Shoal Field with which this applica- tion.is concerned? Yes, Sir'. And of course you are familiar with the application which has been filed in this case? Yes, sir. (To the Committee)...May his qualifications as an expert be admitted?. MR. WILLIAMS: We will accept his qualifications 'as an expert witness. Mr. Nabors, you've heard my ~rief opening statement.. Has Pan American Petroleum Corporation completed a well in the Middle Ground Shoals Field in the "A" pool as it is , presently defined, and has it conducted a separate pro- r~ ~, .~,~ wDiv. Of Mines &Min.. *- ~.~.~. I I R & R ,COURT REPORTERS 825 WEBT EIGHTH AVENUE -- SUITE 5 2'77-4713 ANCHORAGE, ALASKA 10 11 17 18 2O 21 29. 9.5 A Q Q duction test from that pool? Yes, sir, in our Middle Ground Shoal 17595 No. 11 is such a well. Do you have an exhibit which would show the Committee just how we completed this well and how we~.'have produced it since it haS been completed? Yes, sir, this first exhibit on the left here~ is a dia- grammatic sketch showing the mechanical equipment comple- tion in this.well. Excuse me Fred, haven't we got some small copies of this exhibit? (Small copies are passed out to the Committee). Sure do. (Pan American Exhibit "A", Wellbore Sketch is marked for Identification). What is Exhibit A? It's a sketch of the wellbore of Well ~11. It shows the mechanical equipment included "in that wellbore in a dai- grammatic sketch. Basically the outline represents a 9 5/8-inch casing set 9535 feet. There are some breaks in this sketch at the top and bottom to show the 200 foot to 400 foot level and certain equipment that is identifie¢ 'in the legend as surface safety valve. :~3This is a require ment in this pool. We ~have*.a break there; we start at 5600 feet and extend down to 7400 feet, where we again' break to show the lower part of the hole. In the illus- tration we represent tubing strings 'by parallel Vertical R & R COURT REPORTERS 825 WEBT EIG~HTH AVENUE ~ SUITE B 277-471:3 ~ ANCHORAGE, ALASKA 1 2 3 4 5 6 ? 8 9 10 '11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 lines extending inside the 9 5/8-inch casing. In these : tubing strings we have certain mechanical equipment to enable us .to perform operations with wireline tools from the surface. The first indicated tool on the legend is a nipple for landing plug. we have one of thOse in string ~/3; we have two of them indicated on the sketch; we may have one in' the other tubing, one or more in each string. The next item is a sliding sleeve and it's indicated that we have two in the long. string which is identified as ~/1. We have one in the intermediate string which is identified as ~A2. You may note also the size as indicated in the legend. String ~/1 is 2 7/8-inch o.d. tubing. String ~/2, the intermediate tubing string, is also 2 7/8~inch o.d., and string ~/3 or the short string is 2 3/8-inch o.d. The purpose of these three tubing strings is to permit completion in each of three separate intervals. The Stat~ "A" pool has been completed in tubing string ~/2; and the '~"', "F", "G" pools are com- 'pleted in tubing string ~/1 or 'the long 'tubing string. With. this. arrangement i~is possible to separately pro- duce simultaneously all three of the zones through tis own tubing string, The mechanical equipment we have here will permit commingling of production between the zones which is essential for the operation on the initial kickir off of the well. We also have arrangements whereby we R & R COURT REPORTERS 825 %VEST EIGHTH AVENUE -- SUITE 277-47 ! $ ANCHORAGE, ALASKA, 10 12 14 15 16 18 19 2O 21 22 23 24 25 Q -8- could commingle the "A" pool with the "B", "C", "D" pools in its tubing string. At the same time if we so desired we could commingle the "A" pool with the ,~,, "F", "G" pools in its tubing string. .This is accomplished by ma- nipulating the tools with wireline equipment from the surface. To commingle the "B", "G", ~)"~ poOls with the "A" pool it would be ~necessary to open the Sliding sleeve incidentally, this sliding sleeve serves the purpose of opening and closing ports in the tubing. ~, It can either be left open or be left in the closed position so that it communicates this tubing string with the annular space surrounding the tubing'. By oPening this sliding sleeve it would be possible to flow 'production from the "B" "C" '~" pools through this string'at the same time that pro- , duction fromm, the "A" po01 wOuld be permitted to flow ,.,i~:~ through that string. On .the '6", "F", "G" p°ol assuming we have no plug in this landing nipple, 'we would have this sleeve in the closed iposit~on, the lower sleeve; opening the upper sleeve which is 'opposite the. perforation in the "A" zone would permit the commingling of' flow from'the '~..' "F", "G" pool to this tubing ~ string with" flow from~ the State "A" pool in the same tubimg. This is a system whereby we could accomplish the recommended proposal for each well. Mr. Nabors, is the well now producing from.each of these ~ ~ ~ .~,~ ~Oiv. Of Mines &Min. R COURT REPORTERS WE~T EIGHTH AVENUE, ~ 13UITE 277.4'7 ! :3 'ANCHORAGE, ALASKA 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 Q A A -9- three separate intervals? That is, the "A" pool, the "B", "C", '~" pool, and the '~", "F", "G" pools~. Yes, sir, it is presently producing segregated tubing strings for each pool. There's no communication' at the present time between the pools. But as you have testified the well is completed in 'a manner which will permit you to commingle the production in the wellbore from the "A" pool with either the "B", "C" and "'D" pool interval or the '~" "F" "G" pools? Yes, sir. I think our application states why we feel that comming- .. ling Would be desirable, here but would you state - - Would you explain what aduantages are there to comminglin~ the production from this "A" ~ pool ,with either or both of the other two intervals? We have two main reasons that we would like to commingle. The State "A" pool has a gas-oil ratio that is higher than is necessary for efficient flow. The "B", "C", "D" pool and i"~"', "F", "G" po°l can use additiona1 gas to aerate the flowing column to aid in,the efficient flow of oil. from:,:the lower reservoirs. By commingling 'with the State "A" pool we,,/iwill benefit from, this available, gas in the "A" pool and it will aid in increasing the production capacity of the lower pools. The mechanical setup here is very complicated and maybe unnecessarily so if we are R & R COURT REPORTERS 82~1 WEBT EIGHTH AVENUE ~ SUITE ~l 2'77-4713 ANCHORAGE, ALA,~KA 10 12 13 15 16 17 18 2O 21 22 23 25 Q -10- permitted to commingle the production. In laymen's language then what you're talking~ about~ in effect is perhaps a natural gas lift as opposed to an artificial gas lift where you put a compressor and put the gas down in? Yes, sir, that is true. You are simply recommending that we use the reservoir energy that's naturally present in the most efficient manner? Yes, sir. I might point out that we are equipped in the upper portion of these tubing' strings for the installatio[ of gas lift valves and for gas lifting. We do believe that the use of this natural energy from the "A" pool would be a more efficient lif't than the use of artificia1 gas lift. For' this reason, gas from the "A" pool would be largelY ~in solution in the oil. It .would enter the heavier .oil column from below and come out of solution , g=adually as it flows up the tube and promote a more uni- form distribution of the flowing,gradient. If we used ~ artificial gas lift that would enter at some point above this packer indicated right here, it would be in a free gas stage and would tend to slip through the'~'oil somewhat and be a little bit less efficient than this natural flow. If the Committee does permit commingling of the "A~' pool with either of the intervals included in "B" "C" '~)" or R 8¢ R COURT RE:PORTERS 82B WEST EIOHTH AVENUE~ ~ SUITE El 277-4713 ANCHORAGE: AL.ASKA 10 18 2O q -1l- both, is there in your opinion any possibility that there will be communication between the "A" pool and any other pool in the field? In other words, will oil from that pool migrate to any of the other pools or will oil from any of these other pools migrate to the "A" pool? No, sir, this cannot happen because in the flowing, condi- tion the wellb0re pressure in each of these zones will be lower than '~he reservoir pressure that exists back in the formation. There will be only one direction that the flow can go. It can come into the wellbo're and through this tubing string to the surface. In your Opinion is there any possibility that commingling the production of oil from the "A" pool with either both of these other two intervals could result in any decrease in the~.~ultimate recovery from any pool in the field? No, sir. Will it have any effect on the producing rate? It could conceiVably increase th'e producing rate as I've explained because of the more efficient lift. Again to get it to laymen's language then what we're proposing will allow the well to produce at a greater rate? It Will not decrease the recovery from any pool. Will it affect the recovery ,. ' the ultimate recovery total from any pool? R & R COURT REPORTERS 825 WEST EIGHTH AVENUE ~ BUITE5 277-4715 ' ANCHORAGE, AI.A~KA 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 A No, sir, I don~.,t anticipate that it will affect it. Q In other words, you're simply talking about a more effi- cient use of the natural reservoir energy to get the current producing rate as high as we can. A Yes, sir. Q Now you have showed there on Exhibit "A" a triple com- pletion. Is there an,even simpler and more efficient way to complete a well and take advantage of this reservoir energy? AssUming commingling is permitted? A Yes, sir. I have another exhibit here that represents a fairly typical completion in the Middle Ground Shoal Field.. It is a dual tubing string completion,. MR. WILLIAMS: Would the Committee hav~ any objection to accePting Exhibit "A"? Then we will accept Exhibit "A" as - MR.SWAN: I'll offer it at this time. (Small copies are passed out to the Committee, and are marked as Pan Ameri- can Exhibit "B" for identification). MR. MARSHALL: Fred -~ you might '~want to know if a few people in the audience might care to look at these. There's so few of them might as well give them some souveniers. MR. WILLIAMS: Might as well.get them in the act. MR. SWAN: Probably ought to ask them to put their names in the record.~.- there's so few here, MR. WILLIAMS: Swear them all in if they are not lawyers. Q Mr. Nabors, referring now to what has been marked as Pan ,~' ~, .~,~ w]DiV, of Mines &Min. R & R COURT REPORTERS 825 WEi~T EIGHTH AVENUE ~ BUITE B 277-4713 ANCHORAGE, AL.ASKA 10 11 12 13 14 15 16 17 18 19 2O 21 -13- American's Exhibit "B", what does that show? Would you explain 'it uo us, please? This represents a wellbore sketch not indicating any particular well but it.is patterned after this sketch. We have the same legend in most regards. We have the ball valve at the top, the sliding sleeve, and the landing nipple or plug; and with this completion we can do any- thing that we're capable of doing with this first com- pletion demonstrated by Exhibit "A" except one. That is, producing intervals through its own tubing string but we can flow any two of the three completion intervals simul- taneously through its own tubing string by - -~an illus- t'ration of how this 'would be accomplished, to produce the "A" pool we would, set a plug in this landing nipple in the ~lower part of string f~2. At the same time if there i no plug installed at the upper level in string f~l and if the sleeve at the lower level in string fA1 is opened, with a plug set in the lower landing, nipple, it would be possible to flow S'~ate pools "B", "C", '~" through that tubing string without communication. Now this could be used for test purposes. By the same manipulation with wireline tools we could flow the '~".,. "'F", "G" pool isolated through this tubing string. Now for commingled production such as I discussed R & R COURT REPORTERS 825 WEBT EIGHTH AVENUE -- SUITE 5 277-4713 AN(~HORAGE, ALABKA 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 Q with Exhibit "A" it would be necessary tO have the long tubing string open to '~", "F" "G" pools with the upper sleeve open, the lower sleeve closed Then flow from '~" "F" "G" , could be commingled with State "A" and flow through tubing string ~1. At the same time it would be possible to commingle the "B", !.!C", '~)" pools by removing any plug from..~the:~.string ~2 and opening the sliding sleeve from string ~2 which would allow for a flow from tho~e two zones.concurrently. This is a .much simpler arrange- ment. We would much prefer thiS. As a matter of fact, the subsurface equipment is not the only complication for a triple completion as compared to a triple completion, if yOu please, with a dual tubing' string. Do you have some exhibits which would show them some of the complications or the difference between the triple and the dual completion? Yes, sir, I have a wellhead sketch drawing here by Cameron which Es the wellhead that we. use for this well ~11. This is the representation of an actual Completion that we have in well ~11. (Small copies are passed OUt to the Committee, and exhibit is marked for Identification as Pan American's Exhibit "C".) MR. SWAN:. Before we leave Exhibit "B" this time? . , may I offer it at MR. WILLIAMS: Does any member have any objection to R & R COURT REPORTERS 825 WE~T EIGHTH AVENU~' ~ SUITE S 277-47~3, ANCHORAGE, AI. ASKA 10 11 12 14 15 16 17 18 19 2O 21 23 24 Exhibit '"B''~ We will accept Exhibit "B" Q In referring now to Pan American's Exhibit "C" Mr -15- A q Nabors, would you explain that to us? The lowermost part on the lefthand drawing of Fxhibit "C" represents the tubing hanger. The three tubing strings would be suspended on that part. Above that part you will notice six valves stacked on top with some flow controI equipment on top of these six valves. This eqdip ment is indicated to be 126 inches tall. Actually it ex- tends in the wellhead room. right up against the upper dec} above it and causes a rather crowded condition.. The. valve is only one part because it's also.~necessary to connect each of these three tubing strings through a manifold int our production system, so there is a 'little additional complication in addition to ~his wellhead. Do you have an exhibit, Mr. Nabors, which would show a typical wellhead setup for'a dual completion such as you' shown on Exhibit "B"? Yes, sir. I'll pass it 'out. (Copies are passed out to the Committee, and exhibit is marked for Identification as Pan American's Exhibit "D".) Before we leave, may I offer Exhibit "C"?~ MR. WILLIAMS:. Hearing no objections from the Committee You will we will accept Exhibit "C", as evidence in this case. mark that Exhibit "D, please ~ ~,.~ ~)iv.. Of Mines &Min.. ~ ~.~. [ i R & R COURT REPORTERS 82S WEST EIGHTH AVENUE ~ SUITE S ' 277-471:~ ANCHORAGE, AI. ASKA 11 12 14 15 16 17 18 19 21 9.3 9.5 q A A q A -16- Referring now to what has been marked as Pan American's Exhibit '~)", Mr. Nabors, what is that, or what does 'it show? This is a dual tubing head which is in use on our' plat- form. As compared to the 126 inches this one is only 79 inches tall. It is a somewhat more compact, and it only has four master valves instead of the six that I've des- cribed on the previous exhibit. The manifolding ties with production facilities are also simpler with this arrangement../ Will this wellhead equipment allow you to produce each of the three intervals in which a well might be completed separately for test purposes? Yes, sir, it will. ~ It will not of course allow you to produce each of the three intervals separately at the same time for productior. purposes? No,. sir. Is this second one, 'this Exhibit "D'1, is that fairly typical of the wellhead equipment on the wells that are currently being drilled in Middle Ground Shoal? Yes, sir, it's fairly typical, of the wellheads that we ar~ now installing throughout Cook Inlet. Referring back to Exhibit "D" in addition to just the simplicity of the downhole equipment, and the wellhead R & R COURT REPORTERS; 821~ WEBT EIQHTH AVENUE -- BUITE B 277-4713 ANCHORAGE, ALAt~KA 10 11 12 13 14 15 17 18 2O 21 A -17- Q Q A equipment are there some other advantages to be obtained or which could be obtained by the dual completion over the triple completion? , The time required to make a completion with a dual tubing string should be less, thereby saving the expense of rig time on a well completion. How about the actual~ rate at which you' could produce the well, assuming that commingling would be permitted? Well, as y0~u know, we have two and 7/8~inch tubing string f~l and 2 illustrated on Exhibit "A" and f~3 would be two 3/8-inch o.d. The friction ~f flow through those three tubing strings would be greater than the flow through two of the tubing strings that we commonly install in dual completions., which are three and 1/2-inch tubing. In other' words, you should have a greater total capacity to produce these three zones through these two tUbing strings than you would have in an illustration such as this that we have on~ well f~ll through all three tubing strings?, We do not have sufficient room inside the 9 5/8-inch'i casing to install more tubing strings of larger size . than we already have on well*f~ll, but we can install two strings' of 3 1/2-inch tubing in the event we complete future wells in this manner. Is it Pan American's intention to change the manner in R & R COURT REPORTERS 825 WEBT EIGHTH AVENUE -- SUITE B 277-471~ ANCHORAGE, ALASKA 1 2 A 3 4 5 6 ? 8 Q 13 14 15 A 17 18 19 20 21 22 23 A 10 11 12 24 25 -18- which Middle Ground Stioal well ~/11 has been completed? No, sir, we do not have any intention of changing comple- tion equipment on well ~/11. It's a complicated process and expensive and we will undoubtedly continue to produce with'-'the present equipment. But on possible future wells which we are anticipating With our application, we would prefer this' type of completion as illustrated in Fxhibit' '!~!B ". Well, to sum up again on that alternate completion with only two strings; of tubing, you 'can segregate for test purposes the "A" pool from any other pool, the intervals included.in the "B"~ , "C", and "U". pools from any other Pools, and the intervals included in the '~" "F" and ?G" pools from any other, pool? Yes, sir. So - - well, maybe we didn't cover this. Assuming that commingling is permitted from this "A" pool to the "B", "C" and "D" or the '~", "F" and "G", .or maybe even both together, is there any possibility that while the well is producing from all of these pools !.there would be any oil migrate from the "A" pool to any other poo! or migrate from any pool to any other pool? No~, sir. The bottomhole pressures in these reservoirs are what we~:wduld refer to as approximately, normal. At all times the bott°mhole pressure in each of these pools would ,~ ~ ~ ~ ~Div. Of Mines &Min.. ~,',~.~. { R & R COURT REPORTERS 8='5 WEST EIGHTH AVENUE 277-4713 ANCHORAGE:, ALAgKA 1 2 3 5 6 ? 8 ~ 9 10 11 12 13 14 15 16 17 18 Q 19 20 21 22 23 24 25 be higher than the flowing pressure in the wellbore so that there would be no chance of flow in the opposite direction. Does Pan American at the present time have some wells in addition to well ~/11 which have penetrated the "A" pool and in which a completion such as you represent on Exhibi~ "B" could be made? Yes, sir, we have several wells. In fact, we are present. ly rigged up with a rig on well ~/10 which we think has possibilities for production from all three intervals. We have well ~11 - - I mean well ~13'~ excuse me, which is in the final stages of drilling,, and we have already obtaine~ 'some logs on this well which '~lead us to believe that it will be productive in all' three intervals as illustrated here. Then some .of the earlier wells that we have ~previ- ously completed as singles or duals also have the poten- tial of completion in this. manner. Assuming that the Committee' does permit this commingling would it~be Pan American~'s intention to complete future wells - - I think you referred to' ~10 and ~ 13 and 'some others - - in a manner such as is 'shown in Fxhibit "B"? Yes. As a matter .of fact this would be our preferred completion. ~procedure and it would be possible that an even more effective completion could be. made than that illustrated by 'this drawing; which is somewhat patterned R COURT REPORTERS WEBT EIGHTH AVENUE -- 2'77.47 ! $ ANCHORAGE, ALASKA 10 11 12 13 14 15 16 '18 19 2O 21 23 25 Q -20- after Exhibit "A". This drawing on F. xhibit "B" can be modified and I believe I will just go ahead and sketch in a modification of the improvement on this completion. (Witness makes sketch on the Exhibit and also .on Report- er's copy.) Now referring agin to'Exhibit "B" you have in pencil made some additional - - drawn some additional lines on it. Yes. Tell us what they represent?' Very' simply I have extended this tubing string ~2' down t.hrough the lower packer. I have illustrated a sliding sleeve' at the. upper portion Of the "B", "C", "D", and at t'he loWer portion' of the' "B", "C", '~)", and I have. indica- ted a nipple for a landing .plug below the lower '.'.p.acker.. Now you will have to visualize that the section of this packer would be removed' through this portion of the tubing that extends through it to make this sketch compatible in all intervals. This has the advantage of permitting the' long sting.to extend below perforations in the '~" "F" "G" po°l. We could .then circulate mud and possibly Sand or other accumulated materials from the lower part of the hole and through the tubing string on the completion pro- cess and th'is would aid in bringing the well in after it has'been mechanicallyi'.'completed wiht the packers in, place and the ~ub, ing'strings in place and the wellhead installed R & R COURT REPORTERS 825 WEgT EIGHTH AVENUE -- BUITE 5 277-4713 ANCHORAGE, ALAI3KA 10 11 12 13 14 15 16 17 18 19 2O 21 23 24 A Q At the same time it would be possible to circulate througt the lower sleeve in tubing string #1 into tubing string #2 in one of its sleeVes, and by the same process we would circulate the Perforations clean in that interval. We are already equipped in the ';A" pool to perform the , same function as Exhibit' "B" was originally sketched. Assuming then that the wells are completed as shown' on Exhibit "B"..~as you have now modified it, would you still be able to accomplish the same .segregation for test pur- poses of the three intervals in the well?~ Yes, sir, it would actuallY give you a little bit more .flexibility. We could test any one zone through either tubing string as a matter of fact. Well, would you,~at this time is there a possibility that we might Want to complete future wells either as shown on Exhibit "B" as you originally showed it or in the mann~ shown on Exhibit "B" as you now have modified it with you~ pencil sketch? Let me see if I understand you. Are you asking .that this modification would be our preferred completion?. I'm simply asking at this time if we might want to use both ways. In other words, one well might be completed in the manner shown on EXhibit "B" as originally intro- duced; the next well we might want '~to complete .it the~ other way with' the extension of the String down into the R 8¢ R COURT REPORTERS 82B W"=~T EIGHTH AVENUI; ~ ~UITI; 5 277-4713 ANCHORAGE, ALASKA -21- 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 25 Q A A -22- lower zone? Yes, sir. That's correct. And either~way would allow you to segregate the three intervals for tests? Yes, sir. And either way 'there would be no communication between these three intervals While the well was producing? No, sir. Now, Mr. Nabors, in our application we have asked first that the COmmittee. approve commingling as shown On Exhi- bit "A" in well ~11 as a specific well. We have also asked that they approve future ¢°mmingling on a well by well basis, in any matter that will permit the three zones .to be segregated or the three intervals to be segre. gated for test purposes as shown on Exhibit "B" either as originally introduced or as modified; or perhaps even as shown on Exhibit "A"o Y.es, sir. In your opinion is there anY additional evidence which could be introduced, let's say, for future hearing~, which the Committee might need in Order to approve the wells on a well by well basis or do you think that at the hearing today we have shown a sufficient foundation for it? well, as far as mechanical equipment is c. oncerned, I believe this covers the field very well. We do have some ~' ~, .~ ~Div. Of Mines &Min. R & R COURT R£PORT£RS 825 ~'VEST EIGHTH AVENUE -- BUITEI~ 27'7-47 ! 3 ANCHORAGE, AI.AGKA 10 11 12 14 15 16 18 21 22 23 24 25 q -23- additional information on production tests. But basically if in the future we give the Committee the information as to a particular well, this is the way we'r~ going to complete it, they would have all of the infor- mation that they needed in order to make 'a decision as to whether or not commingling could be approved in that Yes,·sir. . . You referred - - wait, before.I leave Exhibit "B" I guess 'I'm going to have to'reoffer Exhibit "B" as it has now been amended and maybe improved by his pencil sketch. May I offer it at this time? MR. WILLIAMS :.. Yes, Exhibit "B" cepted as evidence in this case. q as amended will be ac- Now, Mr. Nabors, before we got to the.next 'eXhibit, in our appliCation we stated that the well ~/11 appeared at the time the application was 'filed to have a gas-oil rati( of about 2000 to 1. Subsequent to the filing of this application do you have an extended production test of · this well which gives you an 'even better figure as to the . . gas-oil ratio? Yes, sir. We thought the well'was cleaned up and stabi- lized at the.time we' reported this completion potential. It represented approximately 2000..barrels .... cubic 'feet . . per'barrel gas-oil ratio, w~. ha%e continued to test the well and for the last ten days in October we have a con- . , R & R COURT REPORTERS 825 WEST EIGHTH AVENUE ~ SUITE B ' 277-4713 ' ANCHORAGE, ALASKA . 10 11 12 13 14 15 16 17' 18 19 2O 21 22 23 24 25 q. Q tinuous test period which is represented on another exhi- bit here that I think adequately reflects the capacity of this well to .produce at the current time. This would be Fxhibit '~'f wouldn't it~ ~ · Yes. (Copies are passed out to the Committee, and it is marked as Pan American's Exhibit '~..." for Identification.) I refer now to that y0utve marked as Pan American"s Exhi- ., bit '~".' What is it, Mr. Nabors? What does it show? Exhibit ~" is a tabulation of production tests in the month of October, 1967, received from MGS 17595 well t~ll from the State "A" pool. I have a column for the date of the test, barre.ls:~ of oil per day, and the gas-oil ratio. The test period from the 21st of October through the 30th is a continuous .period and I.have averaged the rates over that period. The oil productiOn rate was 1667 barrels per day and the gas-oil ratio averaged 1108 cubic feet pe barrel. In your .opinion, Mr. Nabors, is that 'average gas-oil' ratio as of, let's say, the last of October a - -well, is it the gas-oil ratio on.a valid, test? Yes, sir, I think most of us realize gas-oil ratios are subject t° some vari'ation on a day-to-day basis, .but as we observed tests run over this period,, they seem to have fluctuated around the average, which I infer is an indica- . . tion that the rate is rePresentative. R & R COURT R£PORTEIR~ 825 WEST EIGHTH AVENUE -- SUITE 277-4713 ANCHORAGI=', AI.ASKA 10 11 12 13 14 15 16 17 18 19 2O 21 23 A Q A A -25- Q A Well, then is it fair to say that the gas-oil ratio of the "A" pool production from well ~il is about 1100 ~o 17 Yes, sir, it is. And this is approximately half what .we thought it was. on the initial test? Yes, sir. , , Now, Mr. Nabors, here again I ask you to assume that the Committee does permit Commingling either as shown -- in the manner~ shown on Exhibit "A" or Exhibit "B" and' that Pan American does make some ComPletions and carry out this program, if there were to be a substantial change in the gas-oil ratio from the "A" pool would there be an indication of that at the sur,~ace in normal producing.. operations? Yes, sir, I believe we would 'detect any substantial chang~ by the production that we discover on the platform, by' the. observation of the performance of the well, such as 'tubing pressures and temperatures and so forth. So let's just assume for a minute that for reasons that we could not understand and predict that the' gas-oil ratic .in the "A" pool would go, saY, from 1100 to 1 to 11,000 to 1, you would have 'an indication~of that on the ' surface? Yes, sir, I believe our total, production of gas would in- crease. We 'would probably observe some frosting of the 'tubing if this Occurred. ,~ ,~..~ ~.~,.~ ~)iv.. Of Mines &Min.. R 8¢ R COURT REPORTERS 825 WEBT 'EIOHTH AVENUE ~ 8UITE 5 277.4713 ANCHORAGE, AL.ASKA. 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 A Q A Q -26- Now, we haven't gone into this in, detail but woul~ either the completion on Fxhibit "A" or the completion on Exhibi · "B" permit you to test periodically any time that it was necessary to do so the production from any one of the three intervals in which a well might be complete? Yes, sir, in order to' perform the tests it would be neces sary to manipulate these downhole tools, with wir'eline:i~ equipment from the sUrface. How often~do you think these' tests ought to be run?' Assuming that there's no indication of - - at the surface of something wrong and everything seems to be ~norma!, but you still want to double cheek it with the tests? Well, as we said in our application, we think initially a test at six months interval Would be adequate to esta- blish that the operation is following, our anticipated proposal. Subsequently, after it maintains a more firmly established 'type of operation' we would like to see the '; · frequency of the tests maybe reduced to an annual basi~s, and this could conceivably be carried out at such time as we would be running wireline, tools into the well for bottomhole pressure's or some .other need at that time. Mr. Nabors,~you are familiar with the .Commission's rules as they have recently been amended and adopted? Yes, sir o On the testing of these packers, sleeves and so forth, do Mines&Min..'~,~,,. [ R & R COURT RE:PORTE:RIB 82~ ~YEST EIGHTH AVENUE ~ BUITE B 277-4713 ANCHORAGE;, AL.ASKA 1 2 7 8 9 10 A il Q q 15 16 17 18 19 A 2O 21 22 23 24 25 q the Statewide rules, the general rules, adequately pro- vide for testing in your opinion? · Yes, sir, they do. Those Statewide rules would apply to our-present completion where we use multiple zone com- pletions. ~The insofar as the testing is concerned if the comminglinl is approved in this application you feel that the State- wide rules as they are now. adopted would provide for adequate testing Yes, sir. And ypu would not recommend any changes for this.field in those Statewide rules? No, sir. Mr. Nabors, the question has been raised here, first, wil it be possible for statistical or record keeping purposes to allocate the oil produced from these various intervals so you do.have a reasonable idea of how much each of the three intervals is producing? Yes, sir, the fact that we currently produce the wells on the platform into common production equipment, storage and so forth, and the individual well and producing interval is allocated on the basis or.periodic tests. This would still be the case in the event we were permitted to com- mingle production downhole in this manner. In other words again you do not see any necessity for R & R COURT REPORTERS 825 WI[BT EIGHTH AVENUE -- 8UITE ANCHORAGE, ALASKA 10 11 12 13 15 16 17 18 19 2O 21 22 23 24 25 Q A. A -28- changing the way in which we're doing ~things in order to allocate the production to these three intervals? NO, sir, nothing other than the periodic testing of the individual .producing intervals. The same periodic' testing that you're doing now will . still let you get what you need? Yes, sir. Another question comes up, Does this proposed comminglin~ have any effect'on the price that might be received by · Pan American for its share or any of its ' partners or' the State on it~.'.s royalty share for the oil produced from any of these wells? No, sir, the oil production is transported to shore in a common pipeline, thereby it is commingled and the price we receive is an average gravity which..is measured 'at the transfer point on shore. Well, here again you're not ProPosing any change in the manner in which the crude is transported to shore and bought or sold... It will still be the same way? yes, sir. Then' really basically all ·you're proposing here is a way in which you can more efficiently use the natural reser- .uoir ener§y, which is gas in this case, before it gets out of the Wellbore? Yes, sir. We' think the effective use of this gas has R & R COURT REPORTERS 825WEBT EIGHTH AVENUE ~ E~UITE ~ 22'7-4713 ANCHORAGE, AL, A~BI~A 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 .q A Q q ,29- very definite benefits in our operation. This has been covered, I know, in previous hearings but maybe for this hearing we should point it .out, What is the reservoir energy here? Well, 'its a~'solution gas drive. In other .'words , .gas is your reservoir energy? Yes, sir. In your opinion, if you continue to.'produce well ~/11 in the' manner in which it is now being produced, that is, ~ each of the three intervals being produced separately , into the tanks on platform would that be as efficient as 'as efficient a use of your reservoir energY as you would be able to obt'ain if you were permitted to commingle this "A" pool with one of~ the Others? No, sir.' ~As a matter of fact we already have installed On Platform Baker,~whiCh is the platform for completion of well ~11, a gas lift compresSor, and we would antici- pate. the. requirement of gas lifting of these two lower zones to maintain the'maximum production. .This is cer- tainly possible but this gas lift compressor has a dual function. We' anticipate that it Will be used also to deliver gas through the pipeline to the beach. We have a dual pipeline; one for oil and one for. gas. And this will permit the redUction of the flare on the platform and Put' the gas on the beach' where it Will be convenient R & R COURT REPORT£R$ 825 WEBT EIGHTH AVENUE -- SUITE 277-4713 ANCHORAGE, ALASKA 1 2 3 4 5 6 ? 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 q -30- to whatever use can be found for it, and it would serve to - - by. the use of the "A" zone gas energy for lift, it will serve to reduce the horsepower requirements on this Platform for gas lift. This. is a definite benefit in · that platform space is at.a premium and..that if we irequir, sPace for gas lift equ.ipment 'it might crowd the space needed for other vital equipment for secondary recovery, water flood, or other such operations. So, then permitting~this more efficient use of the natural reservoir energy has some benefit beyond the use in the wells themselves. Yes. In addition to the .less complex well eqUipment and surface equiPment and the effective' use· of the energy we also conserve platform space. This ~can do nothing but help us in our future Operations of this field. · · Well, now, Mr. 'Nabors, we've touched on this~but at the time· we. filed our application .f~ll was i'the' only well that had been' completed in.the "A" zone, is that right?~ Yes, sir. At the present time am I correct, is Pan American now conducting oPerations on tw° wells which we would~ like to complete in the "A" zone? Yes,· sir, we would like to complete well~ f/10 and well f/13 which are currently in the completion process.or very nea~ to the .completion process. 1 /' /, ~ /, EIGHTH AVENUE -- :SUITE 277-4713 ANCHORAG£, A~$KA 10 11 12 13 14 15 16 17 18 .19 2O 21 22 23 24 25 Q -31- Gentlemen, necessarily when we filed this application we could only talk about what was the fact at the time. We · do now have these two wells on which we were conducting operations. 'I did file an application which is fairly broad in the sense that it says we not only ask for per- mission to commingle in well ~.11, we ask for permission to approve it as an administrative matter, future com- mingling, and - - I've got a. real good sentence in here - it says' "Or enter such other Order as may be justified or required by the evidence presented to it at. the hear- .ing, at said hearing.'' At this time quite frankly because we are conducting operations on these wells, on these two wells, ~/10 and .f~13, it would' save ~s:.';a lot of time and it would save us a great deal of expense if we could continUE the completion of these two ~wells 'and complete them in a manner which will permit .~this c0mmingl~ng. Now I would like to ask you~at this time - - assume first that you agree that commingling is a good idea, do you think it would be proper at this hearing for. us to ask, based on the '.evidence, that we be permitted' to go ahead with well f/10 and well f/13, and complete them in a manner which will permit commingling and go. ahead and commingle them or Would you rather simply approve ~ll'and give the super- visor authority .to approve future co. mmingling as an 'admi- nistrative matter on a::.well by well basis, and let us go · / / R & R cOuRT 825 W£~T EIGHTH AV£NU£ 27'7-4713 ANCHORAGE, ;ALASKA 10 11 12 14 16 17 ,18 19 2O 21 22 23 24 25 ( -32- back and file an application? I'll tell you now if we do it. that way as soon as we get back. we're going to file an application one, well ~10 and well ~/13, but it seems, to me we could cut 'down on the paperwork here by taking care of the three wells with ,this one here. MR. WILLIAMS: I realize that this woUld cut down on paperwork but I prefer to follow the other Rules of acting on, what was~,:.requested in your application,and if we decide we can do these other matters administratively we can take those up as we come to it. I'm sorry if it,'s going to cause more work but I think we should follow this~ line of procedure. MR. SWAN:. I don't think it's too imPortant one waY or the other. I do want to give' you in this hearing as much evi- dence as I can so that when we do file these applications you'll have everything you need, MR. WILLIAMS: Thank you. (At 10:40 a.hm'~'.~,,there was a recess until ~10:50 a.m.) .(ON THE KECORD) MR. SWAN: 'Gentlemen, it's a little tough' to present one like ~his when you don,.!fi' have any 'opposition to sort of get you on your toes, but I have tried' to give yoa the basic reasons why we want to commingle the production here, and I've tried to show you not only how we have done it in one well but how we propose' do it in future wells, .and. at the same time I've tried not go giv~ you tOo'much detail, but if you have any questions I.'m sure that & R COURT REPORTERS WEST EIGHTH AVENUE -- SUITE I!l 277-4713 ANCHORAGE, ALAgKA 1 2 3 4 5 6 ? 8 9' 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 -33- Mr. Nabors~.~can answer them. If you have any doubts in your mind as to any phase of the proposed operation I think we can satisfy you, but as I say I don't want. to belabor this 'thing, So at this time may I turn him over to you as a witness, if you've got' any questions, either from him~or, ifI you've got some legal questions I'll try to answer them. MR. WILLIAMS: Mr. Nabors, I might ask for my education since I'm not completely familiar'with the mechanical details of , wells, can ·you describe what,s involved in manipulating these sleeves with wirelines and is this .always a positive method of opening or shutting off production? A Well, to answer the first part of your question, we instal at the wellhead a lubricator which has sufficient length to contain the special tools that are run on a wireline. This wireline is on a reel with a brake, and motor for lowering and retrieving the tools. We have specialists, Otis and C. A'. White here in.Anchorage, that are very · competent operators of this equiPment. This equipment is commonly used throughout the ~industry:,·~ I'm personally not a specialist on running ~he tools. I confine myself to appreciating the good job that these particualr com- pany. people do for us. We do have occasions when this equipment like any equipment .'in the oil industry fails. · The worst thing that Could happen in the case of failure R 8¢ R COURT REPORTERS 82E WEBT EIQHTH AVENUE ~ I~UITE E 277-4713 ANCHORAGE, ALASKA 10 11 12 13 15 16 17 18 2O 21 23 ~I' I ( --341 to operate one or more .of the downhole positions would be to pull the tubing' out of the well and replace it. MR. WILLIAMS.: Thank 'you. Any-questions from - -? MR. MARSHALL:' I'have a question, Mr. Nabors. Your Exhibit '~" indicates that the production from well }ill is going from, say, a. relatively high gas-oillratio,' it'.s lowering. Its tendency is that way. How long do you estimate that the'produc- tion from 'pool "A", State pool "A", will assist the overall pro- duction from the'other pools in ~11 well? A This may be a matter of degree, assuming that you intend to suggest that the GOR may continue' downward. Actually we have observed a higher:gas-oil ratio in the "B" "C" "D" zones than we have, Ifor instance, in the '~" "F" "G". I doubt that the "A" pool. igas-oil ratio would ever decline to a level equal to or lower than the other in~ tervals, so I am convinced that we would have an e lift source for perhaps the entire .life of the "A" pool. MR. MARSHALL:: That answers my question. Thank you very much. MRL"GILBRETH: Along that same line., if you say that the gas or energy from the "A" po°l would help l'ift the other pools, do you feeI that there's an excess of energy now from the produc- tion in the "A" pool that would be available to help lift lthese others? : A Yes, sir. .We have - - we claim need' for approximately l [~",.~.~,,***,~V. Of Mines&Min..~,'~,~. I R & R COURT REPORTERS 82B WEST EIGHTH AVENUE -- SUITE B 27714713 ANCHORAGE, ALASKA 10 11 12 14 15 16 17 18 lg 2O 21 22 '28 25 -35- 550 cubic feet per barrel of lift gas. As you see, we have almost twice that from~the "A" pool. The gas-oil ratio in the, "~" "F" "G" is approximately 400 and in the "B" "C" "D" it ts , , , approximately 450, so this leaves a very adequate supply of gas at the current producing capacity.of the "A" zone. The "A" zone produces around 1600 barrels per day; the "B" ' "C". , ~, ,~" around - - I be- lieve it's 1200 or 1300 - - the "B" "C" "D" is about 1500. barrels per day production, and the '~",. "F", "G". about 1000 to 1200 barrels per day. So:~actually we have , adequate gas and some to spare in "A" zone. .. ,. MR GILBRETH: Did i understand you to imply that you figure that the 500 or 550'cubic feet a .barrel is an efficient lifting ratio? A That's what we calculate for our gas lift' needs, that we need for lifto MR GILBRETH: On your Exhibit '~"9, the production tests that you have shown, 'do yOu have any water production figures? Did ~the well make any. water on these tests?~ A The well did make water. I did not include it.. I be- lieve from the average that it' approximates 15% which c pared With the initial completion on this well. I read. the potential test which was filed withe°ur form P-7 on October 6.. This test on September 24th, 1967,' a 24-hour test on 24/64-inch choke made 1046 barrels of oil and 175 R & R COURT REPORTERS' 82~1WEST EIGHTH AVENUE --SUITE B 277.4713 AN(~HORAGE, AI,.A~KA 10 11 12 14 15 16 '17 18 19' 2O 21 22 25 -36- barrels of water, and there is some variation in the w~ate production during this test period but it will approxi- mately average that 15% which is represented on this ini? ~ial ~test. MR. GILBRETH: With the period of time that you've had to produce a well now, do you feel this is cleanup water or is it formation water~ A I believe it has to be~,formation water. MR. GILBRETH: Do you think there's any Chance of a.water , drive in the "A" pool? A I would.have to say it's a little early to reach a firm conclusion but the fact that the water is not increasing even on this short 'term basis may be an indication that~ it's not a water drive. If you have a. water~.~drive with the depletion of your. oil you Should observe an increase in water production, or water- oil ratio~,~ MR. GILBRETH: Well, your monthly production report for October showed a higher water 'ipercentage than you have reported here on the tests. ~That's why I was curiouS. A A higher.water percentage? MR. GILBRETH: Yes, sir. A Well, . MR. GILBRETH: It showed a higher water'~percentage than a initial completion. I just wondered' if the water was high. A The monthly, reports are,a reflection' of the test data ~ [ ~,~,.~Div. of Mines&Min..~,~,~. [ . . cou" 825 WEST EIGHTH AVENUE -- Bt.lITE 277.47 ! :3 ANCHORAOE, ALASKA 10 11 19. 14 15 16 17 18 19 2O 21 29. 24 25 -37- since we do no~ measure the actual water production in total from the well. Possibly they're using a test that indicates a higher wa'ter cu~. In my opinion we do not have conclusive evidence at this time that it is actually increas lng. MR. GILBRETH: If the Committee approves the application to commingle fluids with th'e "A" zone making the water in your opinion is there any danger o'f the water entering ihto either the "B" "C" '~)" or the '~" "F'!, "G" if the well is ever closed in and the reservoir permitted to equalize among themselves? Is there any likelihood that this water will penetrate the formation and set up adverse permeability conditions for the oil production' A No, sir. As a matter of fact, we do have some water production in well ~/'11 in the "B", '.'C". , "D" pool for that matter° I anticipate that with the flowing gradient~ imposing higher back pressure on the lower zones because they're deePer that you will. always have a pressure in favor of the."A" zone. We.don't anticipate'any extended shut-in period which would permit any substantial flow of fluid between the zones. MR. GILBRETH: Well, during flowing conditions, you tes~ tified"that you felt the pressures would be such that there would always be a reduction pressure of the wellbore and there could not be any charging or recharging of the formation. If one of these zones has a radically higher permeability than other ones & R COURT REPORTERS WEST EIGHTH AVENUE ~ SUITE g 277-4713 ANCHORAGE, A I,.~SKA 10 11 12 14 15 16 17 18 19 2O 21 22 23 24 25 -38- what will' happen if you do shut in? Will one zone charge the other zone then? A In that case it is possible, that the higher bottom hole pressure zone 'would Charge the lower bottom hole pressure zone. We would manipulate the control equipment in the well to prevent this happening. MR, GILBRETH: Do you haVe any information that would ' indicate that fluids from the "A" zone are different from those in the "B" "C" '~)" and~ '~" "F" "G"? A We have the indication of a 'higher gas-oil ratio which I think, yes, represents a slight difference in fluid character but not a.very significant difference. MR. GILBRETH: There's no difference in the pressure.so far as you can tell except for hydrostatic differences? A I consider all are normal pressure zones. Possibly the '~"' "F" "F" , , zone is slightly abnormal', but otherwise they.are what you would expect at that sub-sea level for the pressure', virgin pressure., MR. GILBRETH: Now you saY slightly abnormal. Do you mean on the lower side or on the higher side? A The higher side, MR. GILBRETH: The higher side. Maybe I misudderstood, in response to one of Mr. s'wan's questions I thought. I understood you to say that you recommend no change in the Statewide rules for testing. Was this with regard to packer leakage or well R 8¢ R COURT REPORTERS 828 WEST EIGHTH AVENUE -- EIUITE El 277-4713 ' ANCHORAGE,, AI.AgKA 9 ¸11 12 14 15 16 17 18 19 2O 21 22 23 24 25 tests2 A Well, packer leakage. MR.' GILBRETH: Packer leakage. With normal depletion would you expect the gaS-oil ration in the "A" zone to increame? A Yes., sir. MR. GILBRETH: Let me ask. another question. To the best of your knowledge is the "A" zone undersaturated? A We have not obtained a .bottom hole sample to determine , this and I.don't'believe.%'m able to state that accura- tely .~ MR. GILBRETH: Are the other zones undersaturated? A Yes, sir. MR. LARSON: What do you think would be the effect of the well tests when you eliminate t.he aeration effect of your higher . gas-oil, ratio oil.being shut off from the well~,and then flowing under different conditiOns? A Well,. - - Mit.' LARSON: . In other words, wouId your well tests accu- rarely represent the productivity ~frOm the formations under pro- duc ing~ ,c ond i t ions ? A Actually I believe they Would because I believe the - - there' would be a slight difference in' back pressure held' on the formation due to the incceased aeration'of the column but this would perhaps tend to cause the '~" "F" "G." and the "B", "C", "D" to. produce slightly less on the R COURT REPORTERS WEST EIGHTH AVENUE -- BUITE 8 277-4'7 ! 3 .ANCHORAGE, ALASKA 10 11 12 13 14 15 16 18 19 2O 21 23' 24 -40- tests but I don't believe this Would be a great differenc~ . b~. GILBRETH: I have one more question on the mechanical setup. With our Statewide rules as they are if the gas-oil ratio ultimately goes beyond the 2000 to 1~ there's reason for restrict- ing or prorating or whatever you~choose t° call it, with the mechanical setup.that you've demonstrated here would it?~be possi- ble to prorate or restrict production at any time in the future? A Yes, sir, this could be accomplished but I would like. to · point' out that there is a ProVision for using gas for gas lift that permits an extension beyond the 2000 - - MR. GILBRETH: From?a gas well there is?~ A Yes, sir;~ MR. GILBRETH: This is not a gas well. Would it be possi. ble to restrict production with the equipment you have here?: A The. equipment has been developed that would permit this restriction. MR. GILBRETH: It could be installed in that area?. A Yes. Otis has a tool for. setting an orifice' and a cont - -'a piece of control equipment which cOuld be planted in this sliding sleeve that would permit a restriction of production from a zone. Now...we do not need this equip- ment · ira a case where there is no restriction on the flow. MR. GILBRETH: That is all. MR.. WILLIAMS: Thank you. .Mr. Marshall. MR. MARSHALL: Mr. Nabors, as .a routine practice do you R COURT REPORTERS '~NEBT EIOHTH AVENUE -'-- SUITE ~1 277-47~3 'ANCHORAGE:, ALASKA close the ports, shut the sleeves, that is, on each of the sepa- rate commingling pools when you shut the well in for any length 3 of time, is this a 'common - - common practice or is this somethin 4 that perhaps we ought to think about for possible protection of these reservoirs in case of any extended shutdown of this pro- ducing interval? 10 11 12 13 14 A Well, we don't anticipate any extended shut-in period' althOugh this is a possibility in case of a pipeline brea~ or some unf°rseen emergencY, it would then be completely possible to close in the sleeve as necessary to prevent this haPpening.';., commingling', between the zones. MR. SWAN: I think what Mr. Marshall is getting at is . this. Would 'we object to a provision in the order which requires us to close the sleeves in the ~event' of an extensive shutdown? 15 A 16 17 18 19 2O 21 22 23 24 25 'I don't think it's objectionable. I don.i!.t think it's" necessarily absolutely required but - - MR. MARSHALL: Is your present setup such that' you can - - that all the sleeves are operable at. all times? In other wore your wireline installation' is permanent as far as the sleeve .~'goes and by merely operating the .wireline mechanism you can op.en or close any of the sleeves shown on Your diagrams? A Yes, 'sir. .. MR. MARSHALL? Then this wouldn't be any particular bur- den to close these sleeves in the event the W~ll was shut. in for any extended length of time? ,~ ..~..,. ,..~,~ ~,Div. Of Mines &Min. R & R COURT REPORTERS ,825 ~VEST EIGHTH AVENUE ~ SUITE ~1 277-47 I;3 ANCHORAGE, AI,~SKA S, 10 11 13 14 15 16 17 18 19 2O 9,1 29. 9.3 24 A It would invOlve the movement of personnel that are spe- cialists in the operating of the tools to the platform for that purpose, and that's about all that would be in- volved. We have most of the equipment available on the: platfo2~n. MR. MARSHALL: Thank you. MR. VONDER .AHE: Mr. Nabors, what is the difference in your bottom hole pressure between those three zones? Do you have. a '!pressure? Have you run a.pressure or calculated them? A We have - - in the original bottom hole pressure in the :~", "F",' "G" is slightly above 4000. The original, botton hole pressure in· "B", "C", "D" is just under 3000. And the State "A" pool we have taken the pressure at 24-hour buildup; it's approxi.mately 2400. It could conceivably build up to a higher degree in a longer test period, we have not extrapolated it to determine what that true virgin pressure is. MR. VONDER AHE: With that much difference in pressure betweenyour "B", "C", "D" and your. '~", ,,F,,, "G" then it would · seem advisable that, for an extended shut-in period, that those- at least those· two should be separated, A Yes. There is a great difference. There is some 2500 feet difference~ from the center of the VBV. , "C"~. ~, ~]~'. pool and the '6", i'~'F", '"G", and in~:~a shut-in period, we would have the hydrostatic head of'fluid in .that tubing acting R COURT REPORTERS WF.~T £1GHTH AVENUE..---- ~UITI~ ~ ANCHORAGE;, ALASKA 10 11 12 14 15 16 17 19 2O 21 22 23 24 .25 -43- to restrain the flow of oil into the wellbore. The botton pole pressures represent a water gradient which is what causes 'a normal bottom hole pressure to be higher at lowe~ depths than at shallower depths. The real difference there would be the difference in the weight of a column of water as compared t° a colUmn?of oil that would exist in the tubing at the time production stops. That's not a very great amount of pressure,r~maybe on the order of two or three hundred pounds perhaPs between those two tubings projected to the same datum.using the fluid gradient. MR. VONDER AHE: One other thing I was curious about. You spoke about flowing the oil md gas to shore. That original line ~was not engineered to carry gas, was it? Would you have to . flow it to the Shell platform and then south to your south Middle · Ground Shoal platform and then ashore?.. Is that the idea? · A Yes.;· sir, arrangements are being completed for this. MR. MARSHALL: Will the. completion of this well as indi- cated on Exhibit "A" and the 'commingling of production from State Pool "A" with the other pools - - do you have any feeling whether this will result in more or less'gas production, total gas pro- duction, from the 'well? A If I understand your'question, will this commingling caus any change ,.in the total gas produced from the well? MR. MARSHALL: Yes. A Only .to the degree that it increases the total production R & R COURT R~PORTER$ 82B WEBT EIGHTH AVENUE,-- EUITE B 277r4713 ANCHORAGE, ALA~;KA .1 10 11 19. 14 15 16 17 19. 2O 9.3 24 -44- from the well will it increase the gas' production. I don't see how there could be.any difference in the flowin gas-oil ratio from the reservoir into each wellbore terval of~production. MR MARSHALL: Thank you. MR. WILLIAMS: Any further questions? Mr. 'Swan? Mr. · Kugler? Mr, Hartig? MR. SWAN: Mr. Nabors, I believe 'this is maybe covered b some .of your answers to' the Committee but just to Sum it up, if we ssume tha~ the Committee does permit this commingling and for any reason in the future it's advisable to cease 'commingling, can that be done at any time? In other words, assuming.Tcomming- ling is permitted, can we Stop. it i~f'it's necessary at any time in the future?~ A Yes, sir. MR. SWAN:. "And .will either,'?of the completions shown on Exhibit "A" or the Completions ~shown~'on Exhibit' "B" permit this to be done? A Yes, sir, they would permit that to be done. If you had' a completion such as described in Exhibit "B" you would be allowed to choose only two of three zones ior .produc- tion. As an additional option you could at that time modify the equipment in the well to the type that's des- cribed in'Exhibit "A", If economics dictated it, to justify the expense to continue the prodUction of all R 0¢ R COURT REPORTERS 825 WEST EIGHTH AVENUE ~ SUITE B 277-4713 ANCHORAOE, A I-P, SKA l0 1! 13 18 2O 21 22 23 24 -45- three intervals in turn. MR. SWAN: .But in effect the~ completion we're proposing either on Exhibit ."A" or Exhibit "B" is not an irreversible com- mingling. It is a commingling that can be terminated at any time is that right? A Yes, sir.. I would say' it doesn't deviate significantly as far as mechanical equipment is concerned from what we?re doing already. MR. WILLIAMS: Thank you. Any further questions: from the Committee? This concludes your. presentation? We'll adjourn the hearing then, MR. SWAN: Before you adjourn I do - - I do 'have - - MR. WILLIAMS: Correction. We're not adjourned yet. · MR. SWAN: I've already proposed to you the problem of the two wells we are currently working. May I ask that the Com- .mittee not take the full thirty days the Statute allows you to make your decision because we would appreciate as early a decisior as you can give us so that we'll know what to do.with the wells we're on. If you do approve commingling I'll promise you we'll get the applications to you just about as quick as i can. get back to Denver and~get started. MR. WILLIAMS: Fair enough. We will come to a decision at the earliest 'possible date. - - END OF HEARING - R 8¢ R COURT REPORTERS 825 WE~;T EIGHTH AVENUE -- BUITE B 2'77-4713 ANCHORAGE:, Ai. AgKA 200 ~ 400 ~ 5600 3 1 · ' ~,ooz Cook Inlet, Alaska WELLBORE SKETC'H OF IVIIDDLE GROUND SHOAL FIELD TRIPLE COHPLETION SHOWING PIECHANiCAL EQUIPMENT M6S 17595 WELL # II 6000 LEGEND I-O--JJ suBSURFACE SAFETY VALVE ~ NIPPLE FOR L'ANDING PLUG , ~ PACKER I'ITITFI SLIDING SLEEVE 1 LONG TUBING STRING 2 7/8" ' 2 INTERMEDIATE TUBING STRING- 2 7/8' 3. SHORT TUBING STRING 2-3/8" 7000~ 7400~ 9000~ ~T~TE '£', '~, 'a ' 9 5/8"Casing set at 9535, MIDDLE GROUND SHOAL FIELD '- Cook Inlet, Alaska' WELLBORE SKETCH OF · D U A L COMPLETION SHOWING MECHANICAL EQUIPMENT ,~rAl'£ 'A' t~001 gT~TE PO0l,,~ LEGEND I--o--FI SUBSURFACE SAFETY VALVE ~ NIPPLE FOR LANDING PLUG ~ PACKER ITl-ITl1 SLIDING SLEEVE' 1 LONG TUBING STRING 2 INTERMEDIATE TUBING STRING Casing set at Total Depth ; "Il! I 1 APPROX. 126 ~,~ _, 37' PAN 6 7 . . ? · ALTERNATE MTL. 22 ~zi' :.., 7-!4-67 wo..,~~-.,,,... 5,000 DETAIL .. .. · · , . . . · -, . HANGER · -. _ ~' E U.E': - .' -. 'A' OTiS cONTROL L~;E~.o~ woad.. ,~¢. PETROLEUM.', CORP. _ . ; . . . - . ~. . , ._ ..-, : _ . . . . . I .? .91 94 Y~NATiONAL BUTTRESS ON 5~ ~TIS CONTROL LINE APPROX. 52' PAN AMERICAN PETROLEUM CORP. ' ~ ! o..,~.~,~.-,'. ...... -- ..... r ' _ I .... I I ?RO~UCT~ON TESTS STATE ~A M~S 17595 POOL NOoll DATE BOPD 18-8 I0-22 0-23 1828 163;8 1599 1315 1207 '1244 1245 10-24 10.25 10-26 1504 1733 1546 1277 1080 1633 10-27 1709 102' 18-28 1788 1111 10-29 1882 1446 1177 '16-21/10-3,0, .1667 SE.TTO T. S. Cate .. - -POSTMARK OR DATE Shell 0~1 Ch_ ' .... :~ - 430-7th Avenue ' ' P. O., STATE, AND ZIP Anchorage, Alaska ~9501~k EXTRA SERVICES FOR ADDITIONAL Return Re~ipt Delfver ~hows to whom Shows to whom, Addressee ~ date date, and where delivered delivered ~ ~-~ 50~ fee -. RECEIPT FOR CER[IFIED MAIL .-=30~ ;.~ '~ REG'GTERED NO. .. ~ SIGNATURE OR NAME OF ADDRESSEE (Alit always befil~d~) [ j ~--~ ;' -- -':~T. S. Cate ' :: ~. -~::"' ' t-' ~CE~IFIED NO . ~ ~.~ ";: - :. 2 · ~ ' - ':115187 SIGNATURE OF ADDRESSEE'S AGENT,AF,ANY '! · . INSTRUCTIONS TO DELIVERING EMPLOYEE INSSRUCTIONS TO DELIVERING EMPLOYEE. ~ow ~whom and .~ ~ Show to whom, When, and~ ~ Delive~ bN'LY II/1 when delivered ,¢;!:~! address where delivered ~ U to addressee (Additional charges required for these services) -. ~i~ ~:: ' Receft,ed the numbered article described. below. POD F0rm3~00 NO INSURANCE COVERAGE PROVIDED-- (See other side) [ ~ ~".. I ~----w~om and r--1 Show to whom, when, and D~ address where delivered - [~ to addressee ~when delivered (Additional charges required ~or these serdces) RECEIPT Received the numbered article described below. SHOW WHERE DELIVERED (OhO i~ requested) ' ' Anchorage, Alaska 99501 o55---16--71M8-7 ~Po RECEIPT FOR CERTIFIED- POSTMARK 'SENT TO R.O. Dunbar . Phillips Petroleum Co. ./ ~ .... -:':--' STREET AND NO. /~D/', · P.O. Box 419- P 0.5 STATE, ~D ZIP CODE ' :~' ~ ~' Anchorage, Alaska 99501 Return Re~lpt Deliver to ~hows to who~ Sho~s ~o who~, Addressee Omfy and date . date, and where ivered deliveted NO. k SIGNATURE OR NAME OF ADDRESSLE (3lust ' ~ R. O, ~nbar .: .. ~~.~ ' ~ ' Phillips Petrole~ Co. .a~,O~ ~ SiGNATURE~DRE~AGENT. IF ANY ~ Anehnrn~o- A1 ~s~ ~ ~ . - ~ ~5--1~1~8-7 GPO : [ RECEIPT FOR CERTIFIED MAIL--30¢ $EtIT TO He C. Jamison POSTMARK OR DATE Atlantic Richfield Co. STREET AND NO. ~. O. Box 360 ,. o.. S~ATE. AND Z~, CODE . Anchorage, Alaska 99501{~ Return Receipt Deliver to and date date, and where delivered delivered ~ 50~ fee ~ CO LO o · · POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL ~[7-~z~h°Wwhen deliveredt° whom' and [---IaddressSh°w tOwhereWhOm,deliveredWhen, and ~ toDeliveraddresseeONLY (Additibnal charges required/or'these services) - : : ,. : RECEIPT " Received the numbered article described below. REGISTEREDfl0. ~ SIGNATURE OR NA~E OF ADDRESSEE Olfustalwaysbefil&d~) · ; :~ ~. C. J~ison OCm~F~EO ~0. Atlantic Richfield Co. 115188 ' k SIGNATURE OF ADDRESSEE'S AGENT, IF ANY INSURED NO. ' ~: ' ~'":-:"~'~:'::~-: ~chora~e,- 'Alaska 99501 ~" ~ATE DELIVERED -'-~ ~ : RECEIPT FOR CERTIFIED MAIL--30~ _____- !: ~:~ ;~;..'~,~. ~=.~.~ ~:.~i · ., ,OST.AR" '~ ~1 ~;iNsTRUCTION~ TO DELIVERING EMPLOYEE Standard Oil Co. of ~lif ~ ' ~~'~how to whom and ~ ShOw to ~hom, ~en, and 5:~:~ Delia? GNLY ~ s?~T A~D~O ~ ~ ~ ~1 ~en delivered : q~ ~ address where defivemd :'~;~.to aoore~e . '' ....... ,~ ~ ~ ~ , .... .':F :/;' ~. - RECEIPT ? -' ~: ': P. O., STATE, ~D Z? CODE _ AA ~_ }~ ~--I '[ Y~ ' :~ d:- -: 'Rec~ved the numbered article described below. ~' '- m~RUCTIONS T0 DELIVERING' EMPLOYEE ...... ! ,'//~ ! : :' ~ / ......... . ' ) I Iv (Additional g q ' f ' ' - ~ (: ~ RECEIPT FOR CERTIFIED MAIL~30~ .' -- RECEIPT -~ I ~ ~" ..... SENT TO George M. Selinger POSTMARK Skelly Oil Co. ORDATE. STREET AND NO. ~ "~ P. O. Box 1650 P. O., STATE, AND ZlP CODE · .~ulsa~ Oklahoma 74102 ~ - Return Receipt ~hows ~o who~ S~ows to who~. Addressee o.~, L'...~::!'7 and date date, and where delivered delivered ~ 50~ fee ' Received the-numbered article described below. Id REGISTERED NO. I~)CERTIFIED NO' · ' 115190 · I~URED NO. O -' 0 D~E DELIVERED SHOW WHERE DELIV~ED (only ;frequeste~ fl T ..... ' .... · Z ' POD Form 3800 NO INSURANCE COVERAGE PROVIDE~ See other side) ~ ~5--16--7t~7 aPO Mar. 1966 NOT FOR INTERNATIONAL MAIL , . . .... : .. ~-:'.~ ,-. . RECEIPT FOR CERTIFIED MAIL~30~ ~NSTEUCTIONS TO DELIVERING E~PLOYEE Show to whom aM Show to whom, whe% an~ Deliver O~LY ~ w~en delivered ~' address whe~ delivered · ~ to addressee SENT TO POSTMARK WI A. Armstrong. Sinclair O.~j~TE STREET AND NO. 425 G. Street, Rm 530 Anchorage, Alaska ~hows to who~ Shows to Who~, Addressee Only and date date, and where delivered delivered ~ 50~ fee e (Additional charges,, required for these services) ~ OD. : ;/:': :: ' RECEIPT ~ x"--[ ~ :' Received the numbered article described below. MO L{~e ~ ~ REGiSTEIRED NO'l'l :: '!: '/ ~ S/~TE O'R N6ME OF ADD~'I~SSEE (~'st'~/w~'s'efi/zedSn)A-/~rms/~--~gg: ~- ~ : . ,.SU.ED .o .... ::~/ 425 G. Street; s ~. 530 ~ ,J ~ '?":' ::: :~::5:~::: ':-:':'~chorage, Alaska ' See other side) .-:/:~ SHOW WHERE DELIVERED (~Oi/requeste~ ' Form 3800 NO INSURANCE COV~AG~ PROVID~ ;~. . ' 10 :0 : :: : :::: ::::: :::: ::::: ::::: :: :: :::::: :' : '~- * '" '/ w'q AFFID ¥1T OF PUBLIC , TION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. -being first duly sworn on oath .deposes and says that ....... .s..b...e... is the .... .1..e.~..a..1....c...l..e4:k ..... of the Anchorage News, a daily news- aper. That said newspaper has een approved as a legal news- paper by the Third Judicial Court, Anchorage, Alaska, and it is now and has been published in the English language continually as a dally newspaper in Anchorage, Alaska, and it is now and during all of said time was printed in an office maintained at the aforesaid place of publication of sald news- paper, That the annexed ls a true copy of a ...1..e.~.a..l....n...o..t:.~.c..e....~.6.21 as It was published In regular issues (and not In supplemental form) of said newspaper for a period of ......... ..o..n..e... insertions, commencing on the ..... .2..7..t:..~lay of .....0..c..t..o..b...e..r. ....... ,19 ...6...7, and' ending on the ............2..7..:..h. day of of ...... ......... , ..... both dates .inclusive, and that such newspaper was regularly distributed to its subscribers dur- ing all of sa.id period. That the full amount of the fee charged for the foregoing publication is' the sum of $ ....... .[_6..:..0.?... which amount has been paid in full at the rate of $1.50 per square. Minimum charge $7.50. One in- sertion legals, $2i~0 per square. Subscribe~.~,v//i~''rt~ 'sW°rn "t° before me this ....2.'~), of:.....O.'.c..t:...o.b...e..r.., 19 Notary Public in and for the State of Alaska, Third Division, Anchorage, Alaska MY COMMISSION EXPIRES August 31, 1970 ' mhtjltng t~, ether wells to be pray. ed. as .7~,admintitra~ matter wttk~t, no~e., or ..h~rm[ shof~/t~ th~[[~e .m~anJ~al eom protect ~ ~e' oil' ~po.o[s orders, and t~a~' ?~he' opera'ers' o~ the leases subJ~t.;t~ said cona~va-~ .suit ~refr~;,~ I A .~blic 'hear~ on ~his matter will be held .~t the City Counc~ Chambers ~ the basement of 'the Z. J. Loussac ~ibra~y, 5th Avenue a001 D. rtve Anchorage, ,' Alaska..99504 P~Bltsh:'Oet0ber 27; 1967[['i' ',' '' Legal NOtice` No.' 62i., i" , / , ,'~ ' ' , ,, ~,,, , ,,.c,,,~' ' FO~,.M 497 5- 65 PAN AMERICAN PETROLEUM COIH P. ATION SECURITY LIFE BUILDING DENVER~ COLORADO 80202 October 11, 1967 File: AMR-20~3-986o511 Re: Application for an Order Granting Relief From Conservation Orders Noo ~ and No° 53 for MGS 17595 Well Noo 11 to Permit Commingling of Oil and Gas Produced from MGS Oil Pool A with 0il and Gas Produced from Other Approved C~mmingled Pools in the_..Midd!e- Ground Shoal F.~.e.!.d' Mro Thomas R. Marshall,' Jr° (3) Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 9950~ Dear Mr° Marshall: Filed herewith is an Application for an Order by the Alaska Oil and Gas Conservation Committee granting relief from Conservation Orders No0 ~ and No° 53 for MGS 17595 Well No0 11 to permit commingling of oil and gas produced from MGS Oil Pool A with oil and gas produced from other approved commingled pools in. the Middle Ground Shoal 'Field° We are by this letter transmitting a copy..of this Application to all affected parties° We ask that this ApPlication be set for hearing before the Alaska Conservation . Committee° Setting a date for this hearing in November on the 3rd, 9th, 10th, 13th or l~th would best fit around other hearings involving Pan American that are scheduled in various Rocky Mountain states in the lower g8 that month° Yours very truly Attachments cc: James A0 Williams Dire ct or Division of Mines and Minerals Pouch M Juneau, Alaska 99801 Attached Mailing List RECEIVED OCT 13 1967 DI¥1$1ON OF MINES & MINEli~L~ ANCHORAGE MAILING LIST Mr0 Co Lo Cox Sinclair Oil & Gas Company 501 Lincoln Tower Building Denver, Colorado 80203 Mr° Ho Wo Patterson Phillips Petroleum Company 1280 Security Life Building Denver, Colorado 80202 · Mro,Wo Po Whitmore Skelly Oil Company P0,Oo Box 1650 ' Tulsa, Oklahoma 74102 , Mrs, F0 Ho Rhees Sinclair Oil & Gas company 501 Lincoln Tower Building Denver, Colorado 80203 , Mr° C0 Wo Corhett Phillips Pe~rol,eum Company 1280 Security Life Building Denver, Colorado 80202 Mr° C0 L0 Blacksher Skelly Oil Company P0 O0 Box 1650 Tulsa, Oklahoma 74102 Mro F0 L, Franz Skelly Oil Company 1088 Lincoln Tower Building Denver, Colorado 80208 Mr° Paul F0 Robison 926 Sixth Avenue Anchorage, Alaska 99501 Mr° Fo A0 MacDougall Shell Oil Company 430 Seventh Avenue Anchorage, Alaska 99501 Mro J0 Do Carmichael Standard Oil Company of California 225 Bush Street San Francisco, California 94120 Mr° Harry Co Jamison Atlantic Richfield Company Po O0 Box 59 Anchorage, Alaska 99501 Mr° To Jo Files Pan American Petroleum Corporation Security Life Building Denver, Colorado 80202 Mr° Fo Ko Krebill Pan American Petroleum. Corporation P0 O0 Box 779 Anchorage, Alaska 99501 Mro Wm0 To Smith Pan American Petroleum Corporation Security Life Building Denver, Colorado 80202- RECEIVED OCT 1:3 1967 t~i¥1~I(iN OF MINES & ~ STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS ALASKA OIL AND GAS CONSERVATION COMMITTEE 3001 Porcupine Drive Anchorage ~ Alaska RE: THE APPLICATION OF PAN AMERICAN PETROLEUM CORPORATION FOR AN ORDER GRANTING RELIEF FROM CONSERVATION ORDERS NOo 44 AND NOo 53 FOR MGS 17595 WELL NOo ll TO PERMIT COMMINGLING OF OIL AND GAS PRODUCED FROM MGS OIL POOL A WITH OIL AND GAS PRODUCED FROM OTHER APPROVED COMMINGLED pOOLS IN THE MIDDLE GROUND SHOAL FIELD APPLICATION COMES NOW, Pan American Petroleum Corporation, on behalf of itse.lf~ Phillips Petroleum Company, Sinclair Oil ~ Gas Company and Skelly Oil Company, (said four companies hereinafter sometimes being referred to for convenience as "Chakachatna"), and respectfully petitions the Alaska Oil and Gas Conservation Committee for an Order ~ranting relief from Conservation Orders No° 4~ and No° 53 fora MGS 17595 Well No° 11 to permit commingling of oil and gas pmoduced from MGS Oil Pool A with oil and gas pmoduced fmom othem approved commingled pools in the Middle Ground Shoal Field° In support of its Application~ Applicant states that~ I0 Rule 3, Permissible Commingl[ng~ of Conservation Orders Noo ~ and No° 53 prohibits commingling of oil and gas pmoduced fmom MGS Oil Pool A with oil and gas produced from other defined pools in the Middle Ground Shoal Field° Applicant requests relief fmom said Rule 3 for its MGS 17595 Well Noo 11 in order to lighten the oil column from the deeper pools in this well to facilitate the well"s ability to flow its pmoduction to the surface~ The expected impmovement in the well"s ability to flow will in turn minimize compressor horsepower requirements thereby providing more efficient use of space on the Chakachatna Platform "B" erected over Lease ADL 17595° The Chakachatna and Shell-Atlantic Richfield-Standard of California (SAS) Groups at this time are jointly inves~ tigating the feasibility of various gas disposition methods from the shore facilities° Commingling production from MGS Oil Pool A at Well No° 11 with othem pools approved for commingling in the Middle Ground Shoal Field will result in the greatest utilization of ~as produced from an underground source of supply to permit maximum recovery of oil and gas, thereby assurin~ the prevention of waste0 IIo MGS 17595 Well NO° 11 located in the NW/~ SW/~ Section 31, T9N~R12W, 'is presently triple completed in MGS Oil Pool A, MGS Oil Pools B, C and D and MGS Oil Pools E, F and G0 Three strings of tubing and three packers have been installed in Well No° ll in the mechanical manner shown on Exhibit "A" attached hereto and made a pa~ of this Application° Tests taken of MGS Oil Pool A during completion operations at Well No° ll show a gas-oil ratio of approximately 2000 cubic feet per barrel° Applicant proposes at Well Noo ll to commingle for production purposes and to segregate for well test purposes by manipulating .the present downhole, equipment with wire line tools° Because it is hazardous to manipulate the sleeve in the downhole equipment with wi~e line tools, Applicant proposes that well tests be conducted at Well No° ll no mo~e frequently that on a semi-annual basis° III0 Other wells which have been or may be drilled within the area subject to Conservation Orders No0 ~ and No° 53 may be found to have penetrated MGS Oil Pool A at locations which are capable of p~.oducing oil that can be commingled with oil produced from other approved commingled pools in a manner which will permit the same beneficial results to be obtained° Conservation Orders No° ~ and No° 53 should be amended to permit such commingling to be approved as an administrative matter, without notice or hearing, upon a showing that the mechanical completion of the well will adequately protect the oil pools subject to said orders, and that the operators of the leases subject to said ConsePvation Orders, as the representatives of all affected parties, agree that such commingling is proper, and that no waste of oil or gas will result therefrom° IV0 The Chakachatna Group above named, and Shell Oil Company, Atlantic Richfield Company and Standard Oil Company of California are the owners of all leases within the area covered by Conservation Orders No° ~ and No° 53 which would be affected by the Committee's Order herein and are also the owners of all leases within 1/2 mile from the outer boundary of said area° No wells have been completed in the pools defined in Rule 2 of Conservation Orders No° ~ and No° 53 by any owner other than named above° The parties above named a~'e ~her~foz'e the only affected paz't£es othe~ than the State of Alaska, as lessor, and are the only parties entitled to notice of the filing of this Application and to request that a hea~ing be had on this matter before an Order is entered° A copy of this Application has been mailed or delivered to each of said affected parties. WHEREFORE, Applicant requests that this Application be set for hearing, that notice of the hearing on said Application be given as required by law and the rules of the Oil and Gas Conservation Committee, and that as a result of the hearing held on this Application, the Committee enter an Order based upon the evidence presented to the Committee at the hearing granting relief from Conservation Orders No° 44 and No0 53 to permit commingling in MGS 17595 Well No° 11 of oil and gas produced from-MGS Oil Pool A with oil and gas produced from other approved commingled pools in the Middle Ground Shoal Field, or enter such other Order as may be justified or required by the evidence presented to it at said hearing, consistent with the relief prayed for in this Application, and further providing that future requests for permission to comminEle production from MGS Oil Pool A with production from other approved commingled pools in any well in Middle Ground Shoal Field may be approved administratively, upon proper showing to the Supervisor that the proposed mechanical completion of the well will adequately protect the pools subject to said orders, and that the operators of the leases subject to said Conservation Orders, as representatives of all affected parties within the area subject to Conservation Orders Noo 44 and No° 53, consent to the proposed operation° -Respectfully submitted, PAN AMERICAN PETROLEUM CORPORATION By Its Attorneys - 3 - STATE OF COLORADO ) ) ss COUNTY OF DENVER ) Ro B0 GILES~ being first duly sworm~ upon oath deposes and states: That he is an Engineering Group Supervisor of Pan American Petroleum Corporation in its Denver~ Colorado office; that he has personal and comprehensive knowledge of drilling and producing operations being conducted in the Middle Ground Shoal Field; that he has prepared the above Application; and that the matters and things therein set forth are true and correct to the best of his knowledge and belief° R~ Bo G~les Subscribed and sworn to befor~ me this _~~ day of ~~-~..~..~- , 1967o Notary Public My Commission expires:,_ )~ _//_~~.~ ...0, ---~ _ 200 ~ 400 --- 5600 £rAr£ ~/' POOl Exhibit 'A' MIDDLE GROUND SHOAL FIELD Cook Inlet, Alaska WELLBORE SKETCH OF TRIPLE COMPLETION SHOWING MECHANICAL EQUIPMENT MG$17595 WELL # II 6000 ~TATE 'R', e', pOOt£ LEGEND ~ SUBSURFACE SAFETY VALVE ~ NIPPLE ~ PACKER FIWITI SLIDING SLEEVE 1 LONG TUBING STRING 2 7/8" 2 INTERMEDIATE TUBING STRING 2 7/I~' 3 SHORT TUBING STRING 2 3/8" 7000 7400 -- 9000 £TAT£ ,£,, ,g, ,~, POOL£ Stage collar set at 7305' 2nd. stage set with 1000 SX class 'G' cement 9 5/8"Casing set at 9535' 1st. stage set with 1300 SX class 'G' cement Artificial Lift as Applied Multiple Completion Choke to the Assembly By KARL lq. TUNSTALL Otis Enginee~ng Corporation Presented at the SOUTHWESTERN PETROLEUM SHORT COURSE DEPARTMENT OF PETROLEUM ENGINEERING TEXAS TECHNOLOGICAL COLLEGE LUBBOCK, TEXAS APRIL 21-22, 1966 Artificial Lift as Applied to the Multiple Completion Choke Assembly By KARL N. TUNSTALL Otis Engineering Corporation INTRODUCTION In seeking a more economical approach to the production of petroleum, the multiple com- pletion choke assembly has emerged to decrease initial cost, lower lifting cost, reduce workover cost, lower-the economic limit while increasing profit per barrel, produce oil which would not otherwise be recovered, and allow an economical means to evaluate questionable reservoirs. Arti- ficial lift has been used above the choke in gas lift, rod and hydraulic pumping, and in plunger lift operations to widen its basic scope beyond the original concepts. Artificial lift created spe- cial conditions and required new rules to govern the allotting of reservoir fluids. REGULATIONS Every regulatory agency, in order to grant a multiple zone allowable, has two basic require- ments which must be met: (1) to constantly pre- vent communication between separate sources of supply; and (2) to have prorating orifices resistant to erosive action. The check valve assembly (Fig. l) remains in the tubing while blanking, allocating, and adjustments are made in the orifice head so that the stronger zone is not allowed to back flow into the weaker. The orifice head assembly, when installed, provides separate flow paths for each zone until that zone has been properly proportioned through its re- spective orifice. The production is then com- bined and jointly flows to the surface. Downhole commingling has been allowed in most states on several bases: (1) production dis- tribution curves, with the single point valida- tion method; (2) limits tests, where tubing inlet pressure remains a constant during lift condi- tions; (3) percentile, based on ratio perform- ance and referred to as subtraction; and (4) on a gravity base, as determined by °API on dis- similar crudes. The frequency rate on subse- quent testing ranges from 60 days to one year. Each means of allocating production is tai- lored for that type of artificial lift. This ap- proach encompasses the fundamentals that it must be an accurate means of distribution, to satisfy the regulating body, but must also be the most economical method available so that the producer warrants continued use of the tool. Oklahoma, Louisiana, Mississippi, New Mex- ico and North Dakota have allowed use of the tool, and the regulating agencies have existing field or general orders to permit its application. Kansas has indicated that an application in that state would meet with approval. Texas is still on an individual well basis, and no order of a general nature has been formulated. Overseas application has been limited to lifting one zone with aeration from another, but an economic limit situation is now in the process of. consider- ation. DISTRIBUTION CURVE The production distribution curve (Fig. 2) serves as the most accurate and economical ap- proach to allocate production in flowing wells and some gas lift wells. Every barrel and/or cubic foot of gas can be allocated back to the. reservoir from which it was produced using a plot of production versus tubing inlet pressure. Its continuation as a valid means to disperse. prodUction, can be ascertained by a single point. check, i.e., validating method, since this plot in-. dicates what the individual zones are capable- of producing against varying back pressures im- mediately downstream of the tool. Tubing in- let pressure is normally used to differentiate the downstream pressure from flowing bottom-hole pressure. The production distribution curve serves ag a working tool to allocate production. It may be obtained by single zone plots which are added to obtain the combined, or may be obtained by (A) SIDE DOOR NIPPLE CHECK VALVE ASSEMBLY Figure 1 (E) SCEMATIC OF · WITH CHOKE WELL I N STA L LED F .',f ~' I I I i:':.:~Si /' ,)1/ ::'El: w. riENT F.! ;:~I[."ABLE (c) ORIFICE HEAD ASSEMBLY ORIFICE HEAD FLOW TUBE ASSEMBLY MANDREL -ASSEMBLY SIDE - DOOR .NIPPLE ASSEMBLY UPPER ZONE - CHECK VALVE - POill TED , li NIPPLE I . 'i', , ..._~ow~ R ~0~ ENTRY PORT ~ KNOCK- OUT PLUG (O) CHOKE IN SIDE-DOOR NIPPLE NO-GO NIPPLE FIGURE .~ 2 PRODUCTION DISTRIBUTION CURVE PRODUCTION VS, TIP 240 .......tVA LID AT I N'G POINT !2 O0 PS I TIP _ 180 ALLOCATION ' _ 167 BOPD I00 BOPD 80' ~ 67 BOPD ~.~_~--UPPER_,~ ZONE ___ 40' i~'~---TUBIN$ INLET PRESSURE 2700 PSI i , TUBING INLET PRESSURE (PSlXIOt) · , subtracting a single zone plot from the com- bined. Any combined production is merely the sum of the two or more contributing zonal rates at a particular downstream condition. This combined ~roduction does fix a tubing inlet pres- sure whereby the single point validation indi- cates any deviation. The production distribution curve is a proof test of producing capabilities of one or more zones through fixed bean sizes as related to downstream pressures. As a comparative base on flowing wells a plot of pressure versus depth (Fig. 3) indicates that any design tubing inlet pressures may be used between the minimum tubing inlet pressure for the traverse of that fixed condition, up to a maximum of the flowing bottom-hole pressure, at desired rate, of the weaker zone. If the flowing bottom-hole pres- sure of the weaker zone is used for the design base, then the differential required to force com- patibility will be the difference in flowing bot- tom-hole pressures. An operator can then pro- duce his well at higher surface pressures, af- fording more versatility than would be the con- dition if choke design were calculated from the minimum tubing inlet pressure. It also allows for wide range surface control to meet allow- able changes, capacity of production facilities and unofreseen shut-in periods. A graphic example of the flow stream (Fig. 4) depicts dynamic conditions existing both up- stream and downstream of the choke. The flow- ing bottom-hole pressure has a bbl/psi rate oF change as a function of the zone's productivity index while downstream of the choke a much higher rate of change occurs which is a function of flow rate through the bean. The bottom-hole pressures range from static to the point at which critical flow takes place. Tubing inlet pressure variations are the same stream's capability to flow through a restriction at pressure ratios less than critical. Any additional decrease in down- stream pressure neither increases production rate nor decreases flowing bottom-hole pres- sure. For any downstream condition this choke will produce only one rate, and will continue to do so until a change in mix, i.e. water oil ratio or gas oil ratio, or pressure occurs. LIMITS TEST Limits tests are set up by some regulatory bodies where the tubing inlet pressure remains a constant as in the case of rod or hydraulic pumping. If the tubing inlet pressure remains constant during testing of each zone individual- ly, and can be returned to this same base when combined flow occurs, then production from each source will remain constant. This situation does not exist in flowing wells, but is a created condition below rod or hydraulic units when each zone is metered through its own choke. Pumping installations have additional ad- vantages over multiple zone pumping since the annulus is used to vent gas (Fig. 5) and the pump only encounters gas-free liquid. Gas.lock- ing of pumps, while pumping below a packer, has been virtually eliminated. As many additional zones as desired or en- countered may be added to the single artificial lift mechanism by merely adding additional pro- rating orifices. Several three zone rod pumping installations are now in operation. As in the case of some existing installations, it may be necessary to choke back a zone capable of flow- ing independently in order to take advantage of the benefits afforded by multiple zone lift with one pump, one tubing string, and still be able to vent produced gas. Hydraulic pumping has been used in con- junction with the choke but requires an addi- tional string 'if the formation gas is to be vented. One operator had six zones commonly pooled for one allowable, but by regrouping and using the multiple completion choke assembly in con- junction with hydraulic pumping, had them sep~rated as two sources of supply. After a re- work to install the necessary down-hole equip- ment he now produces his well as a dual com- pletion, ond is receiving twice the single allow-. able rate. EVALUATION OF QUESTIONABLE RESERVOIRS To have a balance pOint which would war- rant investigation of poor sands present in the well bore, a second zone need only produce one oarrel per day for two years to allow a break even point. This cost comparison allows for both equipment needs and testing requirements. Any production in excess of the one barrel from a second zone would reflect a profit to the ven- ture. OTHER METHODS Two isolated conditions which cannot be utilized under the wide applications of the first two methods, but deserve explanation since they do represent other valid means of allocation are subtraction and gravity proportionment. PRESSURE (PSI'Y, 102) ? 4 ! ,~. ,? ,? ,,* ,,~ ,; ~ .~ ? .,. 2~ ~o _ RESSURE \ ~- MAXIMUM SURFACE P.ESSURE FIOURE ~ $ ~ FLOWING TRAVERSE O PS' ~~~~ 900PSI ~' ~ PRESSURE VS. DEPTH ~' . ~ CONDITIONS: ~ ~T~ tOOSO~B ~ ~ , eO~81~[~'OLR'IO00~ WEAKER ZONE ' 1150PSI~ DIFFERENTIAL FBHP~ POINT OF CHOKE STRONGER ZONE-1950 PSI 800 PSI~ DATUM 80 ~ WEAKER ZONE ~/ FBH P ~ POI MINIMUM TUBING OF CHOKE INLET PRESSURE 2000 PSI FBHP-216OPSl 850 PSI WEAKER ZONE 9- FBHP" 5120PSl STRONGER ZONE lO~ FI GUR E H~ 4 CHOKE PERFORMANCE PRODUCTION VS. PRESSURE ~,o- ...CRITICAL FLOW POINT ' / 2000 PSI -,,. ~.,.~"~.--"--F B H P (~) CRITICAL FLOW IOO ~ ~ 3,740 PS1 TUBING INLET PRESSURE . CRITICAL FLOW Oeo- so- RATE OF CH AN GE o"J~/~O_ FBHP -.2175 BBL/PS' -"~'<,,~ TI P .0455 BBL/PSI ¢o_'~,. 40. 2o. '0* SBHP 4200 PSI PRESSURE (PSI ! I02) ii FIGURE · 5 MULTIPLE ZONE PUMPING WITH GAS VENT TU NG PUMP NIPPLE IDING SIDEDOOR GAS LINE RETRIEVABLE PLUG SLIDING SIDE IPPER ISOLATION PACKER Zon~ MULTIPLE COMPL ETIOI~ CHOKE ASSEMBLY IBULAR GOODS TO RECEIVE MULTIPLE COMPLETION CHOKE ASSEMBLY LOWER FIGURE =~' 6 OCEANFLOOR- COMPLETION OEFLECTOR HEAD SHUT IN CASI N G , · ,,(---UPPER PACKER COMMUNICATION PORT LANDING NIPPLE UPPER ZONE STORM CHOKE PRORATING ORIFICE LANDING NIPPLE LOWER ZONE STORM CHOKE & PRORATING ORIFICE LOWER ZONE CHECK VALVE LANDING NIPPLE UPPER ZONE CHECK VALVE LANDING NIPPLE t UPPER ZONE LOWER PACKER LOWER ZONE The percentile base has been used in con- junction with plunger lift operations, and is an- other case of essentially holding the tubing inlet pressure a constant. Where its use is being ap- plied, the reservoirs are of low permeability, and large changes in flowing bottom-hole pressure do not vary the producing rate appreciably. The zones demonstrate similar producing character- istics although one zone is incapable of flowing alone. It can, however, produce by assistance from the other, a high gas oil ratio zone. In the plunger lift operation a workable cycle frequency is established for one zone, and .held as constant as possible for combined flow. The ratio of single zone and combined establishes a percentile which is then applied for day to day variations in production. The operator may be able to establish a small in- crease in daily production 'by refinement of his combined zone cycle and this increase is allotted on the percentile base established under the closely aligned conditions. Crudes of dissimilar gravities have been combined on a density base with a reasonable degree of accuracy. A plot of the composite specific gravities closely approaches the produc- tion distribution curve. The inaccuracy of this method, in crudes of similar specific gravity, .would be limited by the measurement devices now in common field usage. Other methods can be used and may be the future means by which crudes are separated. Some of these are gas-oil ratio, water cuts, sur- face recording bottom-hole pressure instruments, and possibly allocation based on surface informa-. tion when our existing technology could permit the plotting of a distrubution curve, by com-. .purer, from surface well tests. FUTURE The tool has afforded many producers sav-- ings in varied applications in the past with new · avenues of diversification being conceived reg- ularly. One of the latest uses is in ocean floor completions (Fig. 6) where the operator uses two storm chokes in a dual purpose capacity as both his means of subsurface safety shut-in, and as a prorating orifice. CONCLUSION The past performance of the tool has been highly favorable, and can afford others the same advantages when more than one zone is dis- covered. The progress is linked to permission granted by each state's regulating authority, and that bodies desire or need to conserve dollars in production. Allocation accuracy will always re- vert to the rules that govern the toll, and to the integrity of the operators who seek and obtain_ permission for use.