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CO 062
Conservation 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. 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 plotter/scanner) [] Maps: [] Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other BY: ~ MARIA Scanning Preparation TOTAL PAGES BY: Ro~~ MARIA Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: ~"/~?~' PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: YES NO t/'"R OB~IN~ MARIA 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 DEPAR~v[ENT OF NATUP~L RESOURCES DIVISION OF MINES AND MINEP~ALS Alaska Oil amd 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 MGS 17595 #4 well to permit com- ) mingling of oil and gas produced from MGS oil ) pool ~'A" with oil and gas produced from the ) MGS oil pools "E", "F", and "G". ) Conservation Order #62 March 27, ].968 IT APPEARING T}~T: 1. Pan American Petroleum Corporation submitted an application dated January 22, 1968~ requesting the above exceptions. 2. Notice of t'he hearing ~was pUblished in the Anchorage Daily News on January 31, 1968, and further notice was given by mail of a con- tinuance of the date of the hearing. 3~ A waiver of personal service was received from each of the affected parties. 4. A public hearing was held on March 14, 1968, at 3001 Porcupine Drive, Anchorage, Alaska. Testimony was presented by Pan American Petroleum Corporation and there were. no protests. AND IT FURTHER APPEARING TI{AT in. the MGS 17595 #4 well, the proposed commingling of fluids from the "A" pool with those of the "E", "F'~, and "G" pools would be advantageous since it will result in 'better utilization of reservoir energy. AND IT FURTHER APPEARING TI~T production data from the '~A" pool indicate increasing percentages of both water and gas so that fluid cross-flow between the "A" pool and '~E'~, "F"~ and "G" pools might reduce ultimate recoveries. CONSERVATION ORDER #62 Page 2 Harch 27, 1968 A!gO IT FURTiiER APPEARING T>hiT with certain downhole mechanical equipment installed in the #4 well, there is a minimum chance of conm,~unication between the producing horizons and a minimum chance of possible reservoir damage. AND IT FURT}{ER APPEARIi~IG TI-~AT individual production tests can be made of the ~'A" pool and commingled "E", ~'F", and '~G" pools. AND IT FURTHER APPEARING TiiiT a testing frequency as specified in the application is more reasonable than the testing program recommended i'n testimony. NOW, THEREFORE, IT IS ORDERED that Pan American Petroleum Corporation be granted an exception to the commingling provisions of Conservation Orders No. 44 and No. 53 for the MGS 17595 #4 well to permit commingling of the fluids from the "A" pool with fluids from the '~E~', "F", and '~'G'~ pools provided that: (a) Downhole check valves are installed to prevent backflow between the "A" pool and the "E'~, "F'~, an.d "G" commingled pools. (b) Prior to initial downhole commingling, a 24-hour production 'test of the "A." pool be made, a 24-hour test of the "E", "F", and "G'' pools be made and a 24-hour test of the commingled groups be made. (c) Well tests as indicated, in (b) above be made quarterly until such time as the test requirements of Rule l(b) of Con- servation Order No. 56 for the MGS 17595 #11 well have been met and after that well tests be made on a semi-annual basis. CO~{SEP&'ATIO't~ ORDER ¥J62 Page 3 ).~arch 27, 1968 DO}.:E at Anch. orage, College, and Juneau~ Alaska, anc~ dated :.~arch 27, or~ Tho:nas R. ?farsha. ll, Jr.~ ecutive Secretary Alaska Oil and Gas Conservation Cot:tmittee ~'?'L~' ":'"'" ~' F"" '~' '~' Concurrence: -.,,,:,t.,% , ,~t. ,...., . ~ , .,,,,~ ~, . . t. }~'~' ~e,". ;".', ':,, '~'~ ':,.,"., '", x~,'.,,,~, ~ ,u ,~, z...,,,,,...,..,,,.,.. , ~tska Oil and Gas Conse'rvation Contmittee DJle P~allington, Alaska Oil and Gas Conservation. Committee ,,"7~.,'~,, . Z'...7-'~.~.,.,..,~:.~~~' ........ Karl L, V°~.~de'rAl Alaska Oil and Gas Conservation Committee Alaska Oil and Gas Conservation Committee PRELIMINARY WELL TESTS MIDDLE GROUND SHOAL 17595 NO. 4 PRODUCING INTERVAL DATE BOPD GOR , , 1. Commingled "A" & EFG 1993 3/3/6~ .. 332 450 .~- 3. "A" s/s/68 1944 COMPUTED PRODU~TION BY ZONES WHEN COMMINGLED A 780 BOPD EFG 1213 BOPD Total 1993 BOPD . --400' 5000' 6000' 7000' 9000' R TA TE t~00L K T,4 TE P00LK ~T,4 TE t~OOL~ .( PBTD 919 8' TD 9215' MIDDLE GROUND SHOAL FIELD Cook Inlet, Alaska WELLBORE SKETCH OF ,M.G.S. 175c~5 WELL NO. zt SHOWING MECHANICAL EQUIPMENT IIi 3~ TUBING LEGEND SUBSURFACE SAFETY VALVE NIPPLE FOR LANDING PLUG PACKER SLIDING SLEEVE DUAL FLOW CHECK VALVE k 95/8" Casing set at 7151' k 7'"Liner 9215' With top et 6936~ Later tied back to surface as 7" string. AFFIDAVIT OF PUBLICATION ,STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. being first duly sworn on oath deposes and says that .... she- .... is the...3.e~a_'L.¢3.erk ..... 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 .... lega-l--~o~tee-:#-7~7 as it was publ,shed in regular issues (and not in supplemental form) of said newspaper for. a period of .... orie .......insertions, commencing on the of _.~.813,t1~1~',~_ ........ ,'19.._.6~ and ending on the ....... 3].,st~---day of of ...Januaz,.~r ............ , 19_..~8, 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 $ 10,IX) which amount has been paid in full at the rate of 25¢ per line; Mini- mum charge $7.50,~ me this -3~~ ........... Nota~ Public in and for the Slate of Alaska, Thlrd Division, A~ho~age, Alaska ................ ,. ........ RECEIVED FEB7 1968" .- . DIVISION OF MINES & MINERALS ANCHORAGE STATE OF ALASKA DEPARtmENT OF NATURAL RESOURCES DIVISION OF MINES AN~ MINERALS Alaska Oil and Gas Conservation Committee Conservation File #62 Notice is hereby given that the public hearing of the application of Pan American Petroleum Corporation for exception to Conservation Orders #44 and #53 to commingle oil from Pool "A" with oil from Pools "E", "F" and "G" on the well MGS 17595 #4 in the ~iddle Ground Shoal Field originally scheduled for 9:30 a.m., February 14, 1968, has been continued until 9:30 a.m., March 14, 1968. This hearing will be held at the office of the Division of Mines and Minerals, 3001 Porcupine Drive, Anchorage, Alaska. Thomas R. Marshall, Jr. Executive Secretary~ Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 NOTICE OF PUBLIC HEARING STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES , DIVISION OF MINES AND MINERALS Alaska Oil and Gas Conservation Committee Conservation File 62 Notice is hereby given that the Pan American Petroleum Corporation, on behalf of itself, Phillips Petroleum Company, Sinclair Oil and Gas Company and Skelly Oil Company, has applied for exception to the com- mingling provisions of Conservation Orders No. 44 and No. 53 for the well MGS 17595 No. 4 in the Middle Ground Shoal Field so that the oil and gas produced from MGS Oil Pool "A" can be commingled with the oil and gas from MGS Oil Pools "E", "F" and "G" in order to lighten the oil column and to facilitate the well's ability to flow its production to the surface. A hearing on this request will be held at the office of the Division of Mines and Minerals, 3001 Porcupine Drive, Anchorage, Alaska, at 9:30 a.m., February 14, 1968, at which time the application will be presented and protestants and others may be heard. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish January 31, 1968 VERIFICATION AND AFFIDAVIT STATE OF COLORADO ) ) ss COUNTY OF DENVER ) Ro Bo GILES, being first duly sworn, 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; that a copy of Pan American Petroleum Corporation's Application for exception to - the commingling provisions of Conservation Orders Noo ~ and No° 53 for MGS 17595 Well No0 ~ 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, was sent hy certified mail from Applicant's Denver, Colorado office on Janaury 22, 1968, to each of the affected parties in accordance with Section 215~ of the Oil and Gas Conservation Regulations at the addresses shown herein, to wit: Shell Oil Company q30 7th Avenue Anchorage, Alaska 99501 Atlantic Richfield Company P0 O0 Box 59 Anchorage, Alaska 99501 Standard Oil Company of California 225 Bush Street San Francisco, California 9~120 Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 Skelly Oil Company 1088 Lincoln Tower Building Denver, Colorado 80203 Sinclair Oil & Gas Company 501 Lincoln Tower Building Denver, Colorado 80203 and that to the best of his information, knowledge and belief, the parties above named are the only affected parties to whom certified notice of such Application is required to be given in accordance with the provisions of the Rules and Regulations of the Oil and Gas Conservation Committee of the State of Alaska, Subscribed and sworn to before me on this 22nd day of January, 1968, ~/fStary Public My Commission expires July 26, 1970o FORM 49'7 5- 65,~ PANAMERICAN PETROLEUM COILOOI _TION SECURITY LIFE BUILDING DENVER, COLORADO 80202 January 22, 1968 File t AMR-163-986.511 Application for Exception to the ComminglinE Provisions of Conservation Orders No. 4~ and No. 53 fop MGS 17595 Well No. ~ to PePmlt Commingling of Oil and Gas PPoduced from MGS Oil Pool "A" with Oil and Gas Produced From Other Approved Commingled Pools in the Middle GPound Shoal Field Mr. Thomas R. MaPshall, JP. (3) Petroleum Supervisor Alaska Oil and Gas Conservation Committee 3001 PoPcupine Drive Anchorage, Alaska 9950q Dear Mr. Marshall: Filed hePewith on behalf of the Chakachatna Group of companies is an Appli.- cation for administrative approval by the Alaska Oil and Gas ConsePvation Committee granting, an exception, in accordance with Section 215~ of the Oil and Gas ConsePvation Regulations, to the commingling provisions of Conservation OPde~s Noo ~ and No. 53 for MGS 17595 Well No. ~ to permit commingling of oll and gas produced from MGS Oil Pool "A" with oil and gas produced fPom other appPoved commingled pools in the Middle GPound Shoal Field. We amc by this letteP transmitting by .ce=tified mail a copy of' this Application to all affected parties. You.had suggested I believe to John Eaton of ouP Anchorage Amea that we Should troy to secuPe waivePs fPom the affected paPties0 In my convePsations' with Shell in AnchOpage, while I was thePe, last week fo~ the hearing on ConserVation File No. 32, they indicated that while the~ appeaPs to be no objection to ouP request fPom theiP stand- point, they would prefer not to execute, a waiveP on this Application. We thePefore ape requesting youP adminiStPative appPoval of this Application provided no opposition is furnished the Committee within 15 days. Att achment s cc: James A. Williams Division of Mines and Minerals Box 5-300 College, Alaska 99701 Youms, vex5/' Attached Mailing List MAILING LIST Amlie Winn Shell Oil Company q30 7th Avenue Anchomage, Alaska 99501 Mmo C. Lo Cox Sinclaim Oil g Gas Company 501 Lincoln Towem Building Denvem, Colomado 80203 Mm° H0 Wo Pattemson Phillips Petmoleum Company 1230 Secumity Life Building Denvem, Colomado 80202 Mm0 Wo Po Whitmome Skelly 0il Company Po Oo Box 1650 Tulsa, Oklahoma 7q102 Mm0 Fo Lo Fmanz Skelly Oil Company 1088 Lincoln Towem Building Denvem, Colomado 80203 Mm0 Ralph C~ews 926 6Ch Avenue Anchomage~ Alaska 99501 Mmo Jo D. Cammichael S~andamd Oil Company of Califomnia 225 Bush Stmeet San Fmancisco, Califomnia 94120 M~0 Hammy Co Jamison Atlantic Richfield Company P00~ Box 59 An.chomage~ Alaska 99501 Mm° To J. Files Pan Amemican Petmoleum Compomation Secumity Life Building Denvem, Colomado 80202 MI". F ~ K. Kr'e~i21.1 ' ' ~an Amemicati: ?e~:moleum Po 'Oo Box 7?9 ' Anchomage, Alaska' 99501,. · DEPARTMENT OF NATURAL RESOURCES DIVISION OF'MINES AND MINERALS ALASKA OIL AND GAS CONSERVATION COMMITTEE 3001 P0~cupine D~ive Anchomage, Alaska RE: THE APPLICATION OF PAN AMERICAN PETROLEUM CORPORATION FOR EXCEPTION TO THE COMMINGLING PROVISIONS OF CONSERVATION ORDERS NOo 44 AND NO. 53 FOR MGS 17595 WELL NO. 4 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 .1... 11 1... ~ ~..._ COMES NOW, Pan American Petroleum Co~po~ation, on behalf of itself, Phillips Petroleum Company, Sinclai~ Oil & Gas Company and Skelly Oil Company, (said fou~ companies hePeinafte~ sometimes being r~fe~Ped to fo~ convenience as "Chakachatna G~oup"), and ~espectfully p~esents this Application to the Oil and Gas Conservation Committee of the State of Alaska and in support the~of states: I. Rule 3, Pemmissible Commingling, of Conservation O~dems No. 44 and No° 53 p~ohibits commingling of oil and gas pmoduced fmom MGS Oil Pool "A" with oil and gas p~oduced from othe~ defined pools in the Middle G~ound Shoal Field. Applicant requests ~elief from said Rule 3 for its MGS 17595 Well No. 4 in o~der to lighten the oil column f~om the deepe~ pools in this well to facilitate the well's ability to flow its production to the sumfaceo The expected improve~ cent in the well's ability to flow will in turn minimize compressor horsepower ~equirements on the Chakachatna Group's Platform "B" e~ected oveP Lease ADL 17595. The Chakachatna and Shell-Atlantic Richfield-Standard of California (SAS). Groups at this time are jointly-and continually investigating the feasibility of vamious gas disposition methods from the sho~e facilities, commingling p~oduction from MGS Oil Pool "A" at Well No. 4 with othe~ pools approved for commingI/ng in the Middle Ground Shoal Field will ~esult in the g~eatest beneficial use of gas p~oduced from an underground source of supply to per-it maximum recovery of oil, thePeby assuring the pPevention of waste. MGS 17595 Well No. 4, located in the SW/4 NW/4 Section 31, T9N-R12W, . is p~esently completed in MGS Oil Pools "E," "F" and."G." Inasmuch as the 7" p~oduction casing in this well imposes physical limitations on downhole p~oduc~n~ equipment, Applicant pmoposes at Well Noo 4 a single 3-1/2" tubin~ comPletion with a packer located ~low MGS Oil iPool "A" and a downn~le dual flow check valve to permit commingling, without fluii backflow, of the production in the 3-1/2" tubing string from MGS Oil Pool "A"; with the production from MGS Oil Pools "E," "F" and "G" in this well~ MGS Oil Pools "B" "C" and "D" will not be produced in Well No. 4. Applicant proposes that well tests be conducted at Well No. 4 quarterly until such time as the test requirements of Rule l(b) of Conservation Order No, 56 have been met to the satisfaction of the Committee for MGS 17595 Well Noo 11, approved by Order No° 56 for. slmilam commingling; thereafter, that well tests at Well No° 4 be conducted on a semi-annual basis, III. The Chakachatna and SAS GrOups comprise companies that are the owners of all leases within the area cove~ed by Conservation Orders No, ~4 and No. 53 which would be affected by the Committee's 0~der herein and are also the owners of all leases within 1/2 mile from the outer boundary of said a~ea. No wells have been completed in the pools defined in Rule 2 of Conservation Orders No. 4~ and No° 53 by any owner other than named above, The parties above named are therefore the only affected parties other than the State of Alaska, as lessor, and are the only parties entitled to certified notice of the filing of this Application in accordance with Section' 2154 of the Oil and Gas Conservation Regulations° A copy of this Application has been sent by certified mail to each of said affected part%es concurrent with the filing of this Application. WHEREFORE, Applicant requests that this Application be considered by the Committee as provided in Section 200__~9 of the Oil and Gas Conservation Regulations, that proper notice be given, and that an Orde~ be enteredl, without hearing unless supported by proper protest and request, permitting the Applicant an exception to the commingling provisions of Conservation Orders No, ~4 and No. 53 for MGS 17595 Well No° 4 to permit commingling, in the manner set out in Para~aph II of this Application, of oil and g. as produced, grom MGS Oil Pool "A" with oll and gas produced from MGS Oil Pools "E," "F" and "G" in. the Middle Ground Shoal Field, Respectfully submitted, PAN AMERICAN PETROLEUM CORPORATION Its Attorneys 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 Re' CONSERVATION FILE #62 HEARING OF THE ALASKA OIL AND GAS CONSERVATION COMMITTEE ON A REQUEST BY PAN AMERICAN PETROLEUM CORPOP~TION FOR EXCEPTION TO COMMINGLING PROVISIONS OF ORDERS No. 44 and 53,..MIDDLE GROUND SHOAL 17595 Well No.. 4. Department of Natural Resources', Division'of Mines and,Minerals, 3001 Porcupine Drive, Anchorage, Alaska. March 14, 1968, 9: 30 a.m. R & R COURT REPORTERS 825 WEBT EIGHTH AVENUE -- SUITE 27'7-4713 ANCHORAGE;, AL,ASKA ,, 10 11 12 13 15 16 17 18 19 2O 21 22 23 25 - 2 - PROCEEDINGS M~. WILLIAMS: This is a hearing by the Alaska Oil and Gas Conservation Committee on a request by Pan American Petroleu~ Corporation for exception to the commingling provisions of conservation Orders No. 44 and 53 for Middle Ground Shoal 17595 Well No. 4, 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. This matter ~is referred to as Consevration File No. 62. Although this exception might have been done administratively as requested by the Applicants, the Committee decided a hearing would be proper because Shell Oil Company did not sign a waiver indicating its approval of an'administrative decision. NotiCe of this hearing was first published January 31 for a hearing on February 14. NotiCe of a continuation to the affected opera~ors was mailed February 9, 1968, continuing the hearing until ~March 14, which is today of course. Waivers of personal service of the notice were obtained from affected operators. There were no protests filed. Members of the Committee here today in addition to myself, Williams, are Thomas Marshall, Executive Secretary; Karl Vonder Ahe, member; Harry Kugler, member; Mr.Gilbreth and Mr. Olson, technical advisors; and Mr. Hartig, legal counsel. Witnesses should, identify themselves for the record and be sworn Witnesses not before qualified, if there are any such, will have R COURT REPORTERS, WE~T EIGHTH AVENUE ~ ~UITE B 277-47 ! :3 ANCHORAGE. AI.ASKA 1 2 3 4 5 6 ? 8 9 10 11 12 13 '14 15 16 17 18 19 2O 21 22 23 24 25 to be qualified before they can testify. With those opening remarks we will proceed. Mr. Swan: MR. SWAN: I'm Oscar Swan, attorney for Pan American' Petroleum Corporation; 'we have one witness, Mr. Fred Nabors, .wh¢ has testified previously in two hearings on substantially the same subject matter here, and bis qualifications were outlined at that time. As a matter of fact, in order to shorten this hearing, I would ~like to have the record 0f~'~'those two previous hearings made a part 0f the record here because there wps some general informatiOn there that we'll -- we will not duplicate here unless the Committee has some Specific questions on it. Could that be done? MR. WILLIAMS: I see no reason why it shouldn't. Yes, , we will accept the transcripts from the previous two hearings into the record for this hearing. MR. SWAN: With that opening statement may my witness be sworn? We are ready to proceed. " FRED NABORS after being, duly sworn, testified as follows on examination BY MR. SWAN: , Q Would you state your name, please? A. Fred Nabors. Q Are you the same Fred Nabors who has previously testi- fied before this Committee with respect to commingling · production from MGS Oil Pool "A" with other pools in .... ~ .................. ~"~-'"--"' ........ "'~ii~f' ~ ' ~ ~' , ,,, , hi, documem Is ~qulred I~y '" ': ~ "': , . from Petroleum bbllC~li~d~ i~. ~iJ~ tl~ ~tl~llng fh~f # mt;~ I~ ~ J~ infer'eOmPa~ u~e R & R COURT REPORTERS 825 WEST EIGHTH AVENUE -- SUITE B 277-471:3 ANCHORAGE, AL,A~KA 10 11 12 14 15 16 17 18 19 2O 21 22 23 24 25 A A q q A -4 - the Middle Ground Shoal Field at two previous hearinms? I am. Was there one particular well with which you were con- cerned in the previous hearing? Yes, sir. We applied for a permit to commingle produc- tion on Well No. 11. . And .the testimony you presented at that time was pri- marily concerned with that well, was it not? Yes, sir. How does the application today for affectin~ Well' No. 4 differ -- or perhaps I should say, not the application. How will the completion of Well No. 4, which is propose in th~s application differ from what was done in Well No. 11 and what was shown the Committee in previous hearings? At the previous hearing I presented a well bore sketch which ill~ustrated the 'completion of Well No. 11. It was a completion with triple tubing .strings.in three intervals of production. I also presented a sketch of a well bore that did not pertain to any particular well that illustrated auiplecomp~d~ell with two strings of tubinR. In the present case Well No. 4 will be a dual completion and it therefore requires only a single tubing string to effect the commingling of those two zone s. · ,~s docum~ t~ ~lUtrtd by ' from f'~troleUm ~ ~l~'li~k~ i~n~:, ~l~ tf~ ~t~ndlng Hilt If n~ ~ rlproduc~ for Inte~-compltn¥ Ute ~tl~r. ~ R 8g R C;OURT REPORTERS 821~1 WEBT EIGHTH AVENUE -- gUITIr B' 277-4713 ANCHORAGE, ALASKA 10 1! 12 13 15 16 18 19 2o 21 22 23 25 Q Q A A A Why ~is it only a dual completion in No. 4? We have production from the "B" "C" "D" , , zone from a twin well, and we have production from the "A" zone and "E" "F","G" producing intervals in Well No 4 · In other words, Well No, 4 is just not completed in the "B" "C" "D" , , pool? That is correct. Do you have an exhibit that will show how this will be dually completed and commingled? Yes, sir. Would the reporter mark that as pan American's Exhibit No. 17 Referring now to what has been marked as Pan American's Exhibit No. 1, would you explain that? What is it and what does it show? This is a well~ bore sketch fo= MGS 17595 Well.. No. 4 shOwing, mechanical equipment. It 'is patterned after those'previously presented. The. outer border of the sketch represents~well casing. ProductiOn tubing and packer settings are shown in place inside the well casin There is a legend to illustrate the various pieces of mechanical equipment. Packer settings isolate the two producing intervals. The tubing string is equipped with what we call sliding sleeve.s. These sliding sleeves permit opening and closing of ports in the tubing string which allow co.mmingling of the two zones. These ports F~lt docummt is ,cqulred by ' '~ :'. ' ~ from Petroleum R & R COURT REPORTERS WEST EIGHTH AVENUE -- SUITE ~ 27'7-4713 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 A A - 6 - may be closed for testing to isolate the two zones. With this mechanical .setup would it be possible to either produce the two zones? That is, the "A" pool and the "E" "F" "G" , , pool separately, or t,o produce them with commingling without any possibility that oil will migrate from the "A" pool to the "E" , "F" , "G" pool or from the "E" "F" "G" . , , pool to the "A" pool? Yes, sir. A dual flow check valve will be installed in the sliding sleeve opposite the "A" pool perforations. This check valve will prevent anY production that enter the tubing string above that point from returning to the well bore. Therefore, it must be produced to the surface without any possibility of counterflow between the producing intervals. Well, then really the only essential difference between this well and the Well No. 11 and the -- the more or less ideal situation you showed of another triple com- pletion is that this is only a dual' completion because the well can only be produced from. these two different po~ls, is that right? · That' s right. Incidentally, perhaps for the record we should advise the Committee the~present status of Well No. 11. ,.. What is the status on that at this time? After approval of our application for commingling on ,~ dacum~! I~ ~=quimd by from Pefroleum R & R COURT REPORTERS 825 WEST EIGHTH AVENUE -- SUITE 277.4713 ANCHORAGE, AI.ASKA - 7 - 10 Q. 11 12 13 14 A 15 16 17 18 19 A 2O q 22 23 24 25 A Well No. 11, the check valve assembly which was to be installed was not immediately available, and we commence drilling a well on that leg of the platform where Well No. 11 is located. It's not practical to shut down thi.~ drilling operation just to'run the check valve assembly in Well No. 11. As somn as we complete this well, which we anticipate in the near future that this dril- ling well, we will then commingle the "A" zone in Well No. 11 with one of the other producing intervals. In. other words, it is scheduled. It's just that the logistics of operating a platform haven't permitted us to finalize the completion of it? Yes, sir. Will you get the same benefits from commingling the "A" zone with the "E" , "F" , "G" zone that you anticipate getting .in Well No. 11 and .perhaps other wells in the field in this Well No. 4 that we're concerned with in this hearing? Yes, sir, it will accomplish 'the .same purpose that we proposed for Well No. 11~ Will commingling in your opinion of the -- this "A" pool with the "E","F" and "G" pools permit you to make a more efficient use of the produced gas as a producing mechanism? Yes,' sir. As a matter of fact, we have run some prell- ,1~ dacumem l~ ~:l~r~ I~ ' from Petroleum R ~ R COURT REPORTERS 825 WEET EIGHTH AVENUE -- SUITE ~ ' 2'77.47 ! :3 ANCHORAGE, ALA8KA 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 A -8 - minary tests on Well No. 4 that illustrate this poimt, and I haVe prepared an exhibit showing the results of those tests. Let's pass those out and give the reporter one. (To Reporter) . Would you mark t'hat Exhibit 2, please? Pan American's exhibit 2. Referring now, Mr. Nabors, to Pan American's Exhibit 2, would you identify that? Tell us what it is and what it shows. This shows three production tests obtained on Middle Ground shoal No. 4. The first one is commingled produc- tion from the "A" zone and the "E" , "F" , "G" ~.producing '68 It produced interval. The date is March 1st, . 1993 barrels of oil'~wi~h a gas/oil ratio of 1102. The second test was the "E","F". ,"G" producing interval con- .ducted on March 3rd, 1968. It produced 332 barrels of oil with a gas/oil ratio of 450. The third test is the "A" zone by itself. It was run on March 5th, 1968. Production from this zone was 1944 barrels of oil with a gas/oil ration of 2115. The reason the production commingled is only slightly hiRher than the production from the "A" zone by itself is fl~ manner in which equip- ment was installed in the sliding ~leeve opposite the "A" zone We put a choke in that sleeve which allowed product~ion' to enter the well bore through a 7/32nd inch hole, This tended to restrict the production from the ill ~l I~ I¢~uli~l I~, Imm l~tml~m ~,~iF_-jti~ I~ ~1~ ~ ~1~ ~ It may ~ ~ f~ InfO.ny uN:~. R COURT REPORT£R5 WEBT EIOHTH AVENUE -- EUITI B ' 277-4713 ANCHORAGE, ALASKA 10 11 12 14 15 16 17 18 19 2O 21 22 23 24 25 q A q - 9-- "A" zone and allow the lower zone production to be lifted with the gas at this lower gas/oil ratio,, you see. I have. taken the data on these three tests and computed production of the zones when commingled, which is illustrated on this exhibit. I did ~his by using the Ras/oil ratios and the total gas produced on the commingled test. This computation shows the "A" zone Produced 780 barrels per day; the "E" "F" "G" , , z one produced 1213 barrels per day, for a total of 1993 which was the commingled production on this test No. 1. This illustrates that the gas/oil ratio commingled of 1102 means that approximately twice as many barrels of oil were lifted per cubic foot of Ras under commingled production as was the case for the "A" zone by itself'. This reflects the efficient use of gas production. It also shows the increase in production that was'possible from the "E" "F" 'rG" , , zone by using the gas from the "A" zone for lift purposes. ' It does also show that the production from the "'A" zone is -- when they're commingled is reduced somewhat, is it not? ~ Yes, it's reduced because of the restriction I menti°ne¢ to flow by the choke setting in the ~liding sleeVe. In your opinion is this the"-- is producing these two R COURT REPORTERS WEBT EIGHTH AVENUE -- SUITE I 277-4713 ANCHORAGE:, ALASKA 10 11 12 15 16 18 2O 21 22 23 24 25 m. - 10 - zones, ~he "A" and the combination of the "E" "F","G" by commingling them, the most efficient way in which we can use. the gas that's available as reservoir energy in those two pools in this well, No. 4? Yes, sir, I think it illustrates that very well. As an example, if we were to complete this well with two strings of tubinA with the 7-±nch casinR set in the wel it would be possible to use only 2-~nch diameter tubing strings because of the space limitations inside the casing. In this ~tuation your production from the ,,A,, zone W~ould be recovered With this gas/oil ratio.of approximately 2000 cubic feet per barrel. Your produc- tion from the "E" , "F" , "G" produ¢inR interval would be assisted by Aas lift perhaps. The Aas llift gas togethe~ with the produced gas would cause a gas/oil ratio on that tubing string to be in the range of,say, 1200 to 2000, an~ we would thereby be usin~ almost twice as much gas for lift. purposes. Some of this gas would have to be provided by compression with our gas lift c0mpres sot. This, of course, requires fuel to operate the compressor; it takes up compression horsepower,~or whit] there is only limited space, on the platform. By the reduction in the required compression horsepower for ~' gas lift we would be able to diVert this horsepower to a pipeline compressor service which would deliver I~ ~um~n! I~ ~CClUlmd b~ ' ' from P~tml~um ....... 7'f':'::£'.:,' '_"i,~F.'T" ' R 6= R COURT REPORTERS 825 WEBT EIGHTH AVENUE -- BUITE B 277-4715 ANCHORAGE, AI. AgKA - 11 - 3 8 10 14 15 18 2O '21 22 23 25 the produced gas or a larger proportion of the produced gas through a pipeline to shore where we are presently making arrangements for a market for this gas. In addition to Well No. --wait, before we leave Well No. 4, with the completion setup shown on Exhibit No. 1 can you run all the necessary tests, including producti¢ tests and packer leakage tests, so that you can be sure that this is working right? Yes, sir, by closing the sleeves in the upper producing interval -- this would reqUire moving the check valve assembly -- it would be possible to flow the lower producing interval for a test By opening the sleeves and setting a check valve -- setting ~a landing -- a pluE in the nipple indicated just above the lower packer, the two zones could be isolated and production obtained from the' "A" zone alone. This provides for testimg of the two zones separately. If we run a pack'er leakage test, which we are doing at the present time, we will land a bottom hole pressure bomb after the well has been shut in following a flowing period, we land the bottom hole pressure bomb opposite the "E" "F" "G" perforations, remove the wireline tools from the hole that ran the bomb, then run a plug and set it in the landing nipple just above that bottom packer, thereby, isolating ~the two producing intervals. After a R & R COURT REPORTERS 825 WEST EIGHTH AVENUE -- SUITE II 277-4713 ANCHORAGE, AL. AgKA 1 2 3 4 5 $ 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q A suitable period for pressure buildup we can then flow the upper string, the upper zone, through the tubing string, thereby creating a pressure differential across the lower packer. The pressure recorded by the bomb. will not reflect any change in its pressure as a result of this draw down in pressure in the upper zone due to flowing .if there is no communication past the packer. Following a suitable flow period we can then pump into the tubing, increasing the pressure opposite, the "A" pool to a pressure higher ~han the "E" "F" "G" , , zone, and thereby test the packer in the opposite direction with a pressure differential from the top towards the bottom; thus conclusively proving that there is no packer leakage. Are these tests currently being conducted, did you say? Yes, sir. The results of the tests'will be awailable for the Corn, mittee? Yes, sir. This is in accordance with the requirements of the Statewide Rules. But with respect to other tests, 'how often would you recommend that production tests' for instance, be con- ducted on the well? I believe production tests at six-months intervals would be advisable in the early life of this operation, R & R COURT REPORTERS 82B WEST EIGHTH AVENUE --IBUITIE ~ 277-471:3 ANCHORAGE, ALASKA 10 11 17 18 2o 21 22 23 25 Q A q A commingled operation. After settled production has 'been observed, we would recommend annual tests. These annual tests could be run in conjunction with the re- quired bottom hole pressure, surveys, aG which time wireline equipment would be available on the platform. This is the same recommendation you've made with respec to Well No. 11, is it not? Yes, sir. Getting back to the question I started to ask.a while. ago, are there other wells in addition to Well No. 4, with which we!re concerned 'in this hearing, and Well No, 11, with which the previous hearing was concerned, which offer the possibilitY that they might also be completed in the "A" pool? Yes, sir. The Well No. 14 which is currently drilling · has been logged at the present 'T D ,.and there is indi- cation of good sand development in the "A" zone, and we would complete the "A" zone initially when this well 'has' reached total depth. There are other wells, No. 7 and No. 5 which have production possibilities from the · "A" zone. Ail of the wells are productive in the "A" zone, according to the information that we have. How does this "A" zone production -- or "A" pool produc tion compare with the production from the other pools in this field from this platform? R COURT REPORTERS WEBT EIGHTH AVENUE -- BUITE !~ 277-4713 ANCHORAGE, AI..AIgKA A 6 10 1! 12 13 14 A 15 16 17 18 2O 21 22 q 24 A q Well tests that we have available to date indicate that at least 50% of the production from Platform Baker which is the platform this Well No. 4 is located on, would be -- the "A" zone production would be at least~ 50% of the total production of the platform, with the present wells. In your opinion, where a well permits it -- in other wordS, where commingling can be accomplished in a well, do you feel that in future wells this will be the most efficient way in which to make use of the gas as reser- voir energy? That is, to commingle the "A" pool with either the "E","F" ,"G" or the "B" ,"C" ,"D"? Yes, yes, sir, this has the advantage of reduction in mechanical equipment that is required. As I mentionec you could save one string of tubing on Well No. 4. It also provides,in my opinion,a more efficient lift since · the gas produced along with the oil in solution will come out of solution as the production flows up the tubing string, ~providing a more efficient lift. than, say a gas lift in which the gas from the compressor would be injected into the tubing string above this upper packer. I think we've covered every, thing, haven't we, Fred? Yes, sir, I believe so. Unless the Committee has some questions. As I say, t, ,da~l Il Icqulrtd by from Petroleum [~ll~fl]a~j~ jj~. ~1~ ~ ~J~]~tendlng tl~t It rn~ be rll~uced for Inler~oml~H~ [~ ~1~: R & R COURT REPORTERS WEET EIGHTH AVENUE -- BUITB 8 I 277-4713 ANCHORAGE, ALASKA lO 11 12 13 15 16 18 19 20 21 22 25 purposely we've tried to avoid duplicating too much of what we went into in the previous hearing. MR. WILLIAMS: I believe wedo have some questions. Mr. Marshall? MR. MARSHALL: Mr. Nabors, on the Exhibit 1 the dual flow check valve on the tubing string below the packer, is this purpose for this valve just for packer leakage test purposes? A No, sir, its sole purpose is to prevent counterflow · between the zones; In other words, if production has passed that check 'valve it's ~n~, the tUbing string above the upper packer and cannot return to either producing interval. MR.MARSHALL: I think in your -- in your first state- ments you said that the "B" ,"C" ,"D" Pools were not producing in this well? A That is correct. They have not been opened to produc- tion in this well. MR. MARSHALL: Well, then, Why is their entry necessary to the tubing string from the dual flow check valve at the top of the "B" , "C" , "D" pools? A The "B" "C" "D" pools are illustrated on this sketch only to show their relative position between the others There is no perforated interval in this well in the "B" "C" "D" pool MR. MARSHALL;~ I guess my problem is I don't know where the boundary here is between 'the State "A" pool -- ~1,, doc, Uffl(~ It icqulrdN:J by ' ' from Petroleum ~bl~d~ I.C. w~ ~ ~llq ~ # may b~ r~p,.~auc~cl I~a i~:~l~H~i, iy ~ ~: R COURT REPORTERS WEBT EI(~HTH AVENUI~ -- BUITI~ B 277.47 ! 3 ANCHORAGE, 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ~fR. VONDER AHE: MR. MARSHALL: MR. VONDER AHE: This doesn't show'. MR. MARSHALL: clears that up. - 16 It's right down here by the -- I see it. It's not indicated as a -- It's not perforated. This is perforate (Indicating on the exhibit.) I see. Might fine. Thank you. That MR. WILLIAMS: Anything? Mr. Kugler? MR. KUGLER: Yes,.'I had a question here about this 50%- production on the Baker Blatform is ~oinR to be the -- I wasn't quite clear on that. Would you ~o a' little further, Fred, on that? A Well tests can be summed up on the wells that are pre- sently open to production in the "A" pool. Those wells are -- it's Well No. 4, Well No. 11, and Well No. 13. 'And' as you. can 'see from 'the Exhibit No. 2 we anticipate production approachin~ 2000 barrels per day from the "A" pool in this Well No. 4. Now we have production .~ests indicatin~ in excess of 1000 barrels per day from wells 13 in the "A" pool and Well No. 11 in the "A" pool. That adds up to at least 4000 barrels per day. The tota platform production has been less than 8000 barrels per day. We anticipate that when we have completed this Well No. 4 and have all of Our wells on production that - some thinm on the order of 8000 barrels a day ~production , will be expected. ,!~, dacumem i~ m:qulmd b9 lmm Petroleum R COURT REPORTERS WE:H1' EIGHTH AVENUE; -- ~UITIE 8 277-4713 ~ ANCHORAGE, A L.A$ K.4. 11 , 12 15 16 17 18 19 2O 21 22 23 24 25 -17 - MR. KUGLER: Within -- when you comminmle them here .you say that you only make 780 barrels a day out of the "A" pool here? A This represents a test in which restriction was imposed by this 7/32nd inch port that was installed in the slidinm sleeve that was the '~ source of production from the "A" zone. We thereby restrict'ed production from the "A" pool to enable the well to -- in this cleanup process to clean up and brine out production from the lower interval or the "B" "C" -- I mean, "E" "F" ,,G,, interval. We do not contemplate' such a restriction under '~normaI operation for the "A" pool. There will be due to friction of flow throuEh this tubinz string, there will be some restriction imposed by, you miRht say, the crowdinz on the "A" zone production in the tubinz strin~ by the production from the ','E" "F","G" zone. So there will actually be some restriction below this 1944 barrel test No. 3 on our Exhibit No. 2, bdt it -- it 'will be himher than the 780 barrels per day. MR. KUGLER: Do you have anv idea what will be the -- do you have any zuess on this then, if you open that restriction? Do you think they will make 2000? A I think it's a' good possibility it would approach 2000, yes, sir. ' MR. KUGLER: And the "E",~'W" and "G" will stay in the R COURT REPORTERS INEST EIGHTH AVENUE -- ~UITI~ 8 277-47~3 ANCHORAGE, ALASKA 10 11 12 13 14 realm of 12007 A I'd say'1000 to 1200, yes. MR. KUGLER: This contemplates 3000 barrels or 3500 when commingling? A Yes, sir. MR. KUGLER: Well, this should raise then your total production to well over 8000? A Of the platform, yes, sir. MR. KUGLER: So that your 50% figure then is daily production for a while? A Yes, sir. This is indicated by the well test. MR, KUGLER: Okay. This is -- A We doHt have this Well No. 4 on production at the present, of course; onl. y for test purposes and cleanup 15 purposes. 16 WILLIAMS: Mr. Vonder Ahe ? 17 18 MR. VONDER AHE: Yes. Fred, you had on the -- on these sliding sleeveS, are they .operated bY wireline? 19 A Yes, sir. 20 21 MR. VONDER AHE: wireline? I mean, do you have to rem ovethem' by 22 23 24 25 A Yes, sir. MR. VONDER AHE: Then to operate the lower sliding sleeves, do you'have to pUll the dual flow check valve? I mean, it has to be pulled first before yoU can operate the lower -- R & R GOURT REPORTERS 825 WEST EIGHTH AVENUE -- SUITE ~1 277-471:3 ANCHORAGE, ALASKA , 10 11 12 15 16 17 18 19 2O 21 22 23 24 25 - 19 - A That is correct. MR. VONDER AHE: Then you mentioned, on well No. 11, the plans on that but at the present time the zones are. still being produced separately, is that right? Yes. We have three separate tubing strings in that well. · MR. VONDER AHE: That's what I mean when I say you haven't actually started the producing this other way yet. A No, sir. MR. VONDER AHE: Until you get your equipment off -- off of the leg? The other well.. Thank you. That's all I 'have. MR. wILLIAMS: Mr. Gilbreth? MR. GILBRETH: Yes, Fred, folloWing along the lines of Harry's question there, I assume fzom what you said you don't actually have any tests at this stage without using the down- hole bottom hole choke, have You? Of the commingled fluids? A I don't think we have any~test that we would consider official. We had produced the well in the cleanup period prior to that, but I don't have any tests that I believe I'd be willing tO put on record.' MR. GILBRETH: I see. Okay'. Fred, do you have any drawdown tests or anything that might lead you to have an idea of whether or not this "A" zone is gOing to aid in lifting the fluid from the "E","F", and "G" for a long period of time or wil'. it be relatively shortlived? The benefit here? R coURT REPORTERS WEBT EIGHTH AVENUE -- SUITE I~ 277-471:3 ANCHORAGE, ALASKA 1 2 3 4 5 $ 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 -20- A I think that this Exhibit No. 2 is a very.good illustra- tion of what it can do. We were a little bit perturbed at the test number two of the "E" "F" "G" , , zone showing only 332 barrels of oil per. day. This compares to some- thing like 800 barrels per .day normal production before this well was recompleted in the "A" zone. We thought at first this may have been a reflection of well bore damage due t© 'the workover for..'~ recompletion, but after seeing the commingled test and comparing it, we were convinced that this 332 barrels per day may have reflec- ted just limitations on the flow c~paci'ty due to deple- tion of that lower reservoir. You know, sooner or later a Well with that GOR as the pressure declines will decli also in production.' ~MR. GILBRETH: Well, does your "A" zone have enough per- meability to retain its production and ability to help out here for along, time? , . A Yes, sir, all the evidence indicates it has better permeability than the other zones. MR. GILBRETH: Okay. That's what I wanted to know. You mentioned that you have not yet been able to place the Well No. 11 on production. The Order that was written on NOo 11 provided for~.a testing procedure that we could -- that the Com- mittee could lo°k at, you know, for possible communication, so forth. ' R & R COURT REPORTERS 825 WEST EIGHTH AVENUE -- BUITi i~ 277-4713 ANCHORAGE, AL.A8KA ~e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 - 21 - Yes, sir, we plan to furnish that. A MR. GILBRETH: future, I assume.? A Yes. HR. GILBRETH; After the well -- this drilling well' completed? A This will be done in the not too distant Yes. We will be obtaining that information when we can , . work on the well. MR. GILBRETH: Fred, one thing that there was some concerto I just got that report Monday and I've discussed it with some of our administrative personnel. That's obviously an error. That particular error'happened to be on the water percentage made by the man that was preparing the report. He divided the water production by the oi~ production and had actually a water/oil ratio. (Laughter MR. GILBRETH: We wondered what happened. The figures that are shown for barrel then are right on here? On the report that you submitted? A I believe so. I wanted to discuss, that with' our people. about back earlier when the request was made on Well No. 11, was the water production in the ,,A,, pool. We have just received the ~roduction reports from your c~mpany, a corrected report for January on the "A" pool and then the regular report for February The February report shows that water production from the ~hree , wells varies from 31% to 91%. A ' I document ll~ ecqulred b~; ' ' from Petroleum R COURT REPORTERS WEBT EIGHTH AVEHUE ~ SUITE E 277-4713 ANCHORAGE, AL,ASKA 1 2 3 4 5 $ ? 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 - 22 - MR. GILBRETH: Well, I realize this. But these figures here would be correct showing barrels of oil produced and barrel of water produced, so far as you know? They figure out to these percentages? A This percentage, I believe,is correct. These, of course as I mentioned are not. I think the other water per- centages are probably correct. I think those two are the only erroneous ones. MR. GILBRETH: Would the -- this shows 17,000 barrels of water from one well and 13,000from another well, do you -- have you formulated an idea yet of what~ the driving mechanism, is in this reser, w~ir2 'Is there any chance it's water sensitive? I mean, rate sensitive? Ail the evidence that we have indicates it is not a water drive reservoir. There is not sufficient volume of water surrounding the field. The wells that we've drilled on the edges of the'reservoir have been ~'ght~,~, and there's no reason to believe there will be a sub- stantial water drive. Now'my -- I didn't come prepared to discuss reservoir engineering. Just my recollection is that on some of the other operators' wells, that water production has declined. Now this is just a casual observation of mine. I haven't made a detailed study..of it. ~Certainly this water production has not been a particular problem Up to now, and I'm hopeful A R COURT REPORTERS WEST EIGHTH AVENUE -- SUITE · 277-4713 ' ANCHORAGE, Ai.,ASKA 1 2 3 4 5 6 7 8 9 lO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 - 23 - it might'decline. MR. GILBRETH: You don't see any problem in operating the wells wide open without any control whatsoever on the "A" zone downhole ? A No, sir, I'm a firm believer that this is a depletion type drive, and that a depletion drive is not rate sensitive. MR. GILBRETH: That's an awful lot of water. A If I believed it were a. water drive field, I might be c one erne d. MR. GILBRETH: Have yo.u made any tests to determine if it is? A Well, the normal tests could be an observation of the increasing~ water production, and I don't believe Our production history to date is long. enough for the "A" zone to reach a Conclusion' that it is increasing. I don't. -- I can't say either that it is decreasing, but I am hopeful that it will decrease. MR. GILBRETH: Well, your plan on the .Well No. 4 is not to utilize any sort of a downhole control except for the dual flow check' valve? A That 'is. correct. We think' that the natural resistance to flow through the .tubing in itself will restrict the flow from the. "A" zone, because it will accommodate additional flow from the "E" "F" "G''~ ,~ , zone also, and the ~i~ docun.~m! it k:quimJ by ' . ' from R & R COURT REPORTERS 82B WEST EIOHTH AVENUE ~ BUITE E 277-4713 ' ANCHORAGE, AI.ASKA 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 - 24 - size of the tubing itself will provide a restriction to some degree. MR. GILBRETH: MR. WILLIAMS: MR. LARSON: MR. WILLIAMS: }{R. LARSON: That's all I have.. Mr. Olson? Larson speaking. Oh, I'm sorry, Bob. Larson. I noticed that your ratio for your straighl .. test of the "A" zone is 2115. A Yes, sir. MR. LARSON: That's in excess of the ratios that are allowed under the State Rules. How do you think this will affect if you went to. wide open production on this from the "A" zone and the commingled "E" "F","G"? Would .it start climbing? A Well, I'll try to answer this in two parts, and I'll take. the last part first: In a producing reservoir which is under a dePletion drive there is a likelihood of increasing gas/oil ratio which is the normal' produ- , cing mechanism of that of reservoir. This second part relative to producing it wide open, I believe that we'll be restricted already by this commingling process and that no further restriction by gas/oil ratio penalty is necessary or desirable, at this time. MR. ~iiARSON: Well, now, I have another question then. We know that present reservoir pressures in the Middle Gronnd Shoal are dropping. In fact, Shell informs me' that their wells COURT REPORTERS EIGHTH AVENUE -- SUITE 277-4713 ANCHORAGE, AL.A~KA 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 - 25 - no longer flow. As these pressures continue to drop, your pro- ducing rates from the "E" , "F" , "G" will probably fall off, which' means that you will be producing more and more from the "A", and will that not tend to eventually reach the point where you would be producing at gas/o'il ratios in excess of that permitted by the .State Rules? A I'd have to agree that it is a possibility. It's an involved problem, the solution of which takes into would take into account the reserves and permeabilities of the two zones. For the time being I don't bet. ieve that we 'can say positively but I'm not gravely concerne¢ with this declining reservoir pressure~because we think we have water flood to maintain the reservoir pressure pretty well along in the planning stage, and this will tend to alleviate the pressure decline. We're gravely concerned with pressure decline, and we wish that we could have had the'water flood plans a little further along. Conditions were such, however, that this was impossible. MR. LARSON:. Well, under all probabl~e timing that you get on a water flood installation, it'll be probably about two years before you could really expect any real response from a water flood, isn't that right? A I would say thCs'not an unreasonable forecast. ~ MR. LARSON: By that time reservoir pressure could be R & R COURT REPORTERS WEST EIGHTH AVENUE -- SUITE 277-471~ ANCHORAGE:. 10 11 12 15 16 17 18 19 2O 21 22 23 25 down to a point where we would be actually getting gas produced in ratios in excess of that allowed by the State Rules, isn't that right? Two years? A It might be. I haven't made a detailed analysis of that .. for this hearing. MR. LARSON: What type of artificial lift are your peopl planning for for the Baker Platform? A We already have installed a gas lift compressor which is in operation. We have Well No. 5 on gas lift, and we 'will add additional wells as indicated need arises. MR. LARSON: Do you plan then eventually to deplete this portion of the reservoir developed by wells on P~latform Baker by gas lift? A Yes, sir, that's our primary plan. We did attempt to · run a submersible electric pump in our Well No. 6. Due to mechanical difficulties this pump was removed and the well was returned to gas lift,~ but we have still got the pump and may run it again. Our plans on this are not definite. MR. LARSON: Is Well No. 6 a twin to Well No. 4? That is, producing-- A Yes, sir. MR LARSON: -- from the "B" "C" "D"? Well, it looks to · , ~ - me like we're going' to be faced with p~oducing oil with GOR in ~cess of 2000 cubic feet per barrel quite shortly. I wondered R & R COURT REPORTERS 825 WEST EIGHTH AVENUE -- SUITE ]~ 277-4713 ANCHORAGE, ALASKA 10 11 12 14 15 17 18 19 20 21 22 23 25 - 27 - how we're going to be able to determine from your production data. ~at" the wellhead, when this limiting factor is reached~. A I have proposed test periods at six-months intervals. I think this is a reaonable test period. MR. LARSON: Your Well No. 10 is now shut in in the "A" zone, i's it not? A Yes, sir. , MR. LARSON: For excessive gas/oil ratios? A Yes, sir. MR. LARSON:' Do you have a current gas/oil ratio on the "A" zone in Well No. 117 I didn't bring the test along. It has increased from the value of approximately 1200 cubic feet per barrel that I had testified to at the previous hearing. It is now in the range of 1800 to 1900 cubic feet per~ barrel'. This, of course, i.s based on a single test that we ob- tained a few days ago. Gas/oil .ratio tests on a short- term basis, like a 24-hour test, are notorious for being erratic. I'm not sure I can explain why this is, but we know this is a fact. So if this should be con- firmed by shbsequent tests, well, then the ratio would be -- I would be of the opinion the ratio has increased on Well No. 11o . ~ MR. LARSON: Then the gas/oil ratio trend has reversed itself from what. you have been reporting -- have reported pre- R COURT REPORTERS WEBT EIGHTH AVENUE ~ EUIT"' lJ 277-471:3 ANCHORAGE, ALASKA 10 12 15 16 18 19 2o 21 22 23 24 25 - 28 - viously, that it was going down from first p~duction tests unti. 1 the last hearing. A It's what the data indicates. I did qualify this last test, however, as being a single point test, and I know from experience that occasionally gas/oil ratio teSts are obtained which are not truly representative and I'm mot condemning this test as being unrepresentative. . We'll probably use it. I wouldn't be surprieed if it's included on that production report that ~e,~.,. were lookin~ at just a moment ago. MR. LARSON: Well, I'm going back to this test. Suppose -- well, we know this is going to happen, that the reservoir pressure in the "E" "F" "G" ~ , , zone falls to a point where the well will not flow but they ~ill be. gms ~lffted primarily by the high GOR production from~ .the "A" pool. When you reach that point and you attempt to run a well test, and the well won't flow, how will we know what is coming out of the "E" "F" "G"?~ A At the last hearing I passed out as an exhibit a brochur that indicated this test procedure, it would be as follows in brie~ summary°*/~A production test would be run~ on the "A" zone. We would obtain flowin bottom hole pressures in the tubing at different rates of production. This Would establish the productivity of that zone at a particular -- at any particular flow-~ in tubing pressure by plotting a curve of the various · .... ,, ra~', ,',', ,.," . u u ,i ~ clocum~ it ~lmd by from R COURT REPORTERS WEI~T EIGHTH AVENUE -- EUITE 8 277-471 :~ ANCHORAGE;, AI.AEKA 10 11 14 15 16 17 18 19 2O 21 22 23 24 25 - 29 - tests. This would provide a means of determining what the productive capacity of the "A" zone is at any given flowing tubing pressure. Then when both completions, the upper and lower, are flowed simultaneously, a flowing pressure would be obtained which would give by the previously mentioned test what the producing rate of the "A zone was at that flowing tubing pressure. Then that production subtracted from the total prodUctic on the test would reflect the production of the "E" , "F" "G" , zone. MR. LARSON: Would it be possible to leave t~e gas lift mandrels in the tubing and -- or put gas lift mandrels in the tubing and then gas lift the "E" "F" "G" , , zone singly for a production test? A It would be. possible. MR. LARSON: Wouldn't this be a simpler way? Possibly more expensive. A We think that the. proposed test procedure that I mention is the best way, and this is what we would recommend. Q Well, that's all I have. Thank you. MR.. WILLIAMS: Mr. 'Gilbreth? MR. GILBRETH: Mr.Nabors, you mentioned your recommenda- tion on test period that you recommended on Well No. 11. Yes, sir. MR. GILBRETH: We don't have that readily available here · · & R COURT REPORTERS WEST EIGHTH AVENUE -- EUITE ANCHORAGE, AI.ASKA A ~d 5 6 ? 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 but if the Committee approves this application is the test pro- cedure outlined under the Order issued for Well No. 11 satis- factory? I~ mean for wells other than Well No. 11. There was a provision made for other wells and Well No, .11 in that Order. A That is satisfactory for Well No. 11. MR. GILBRETH: How about the Other w~lls? A I think the Statewide Rules are adequate to cover this .situation. Might I read. what the Rule says? MR. GILBRETH: Yes, sir. A (Reading)' This is from the Oil and Gas Conservation Regulations, State of Alaska, Item ~8o~4~ Commingling of production. "The production from one pool shall not be commingled on the surface with that from another pool except when the quantities .from each source of the production -- of production are determined by periodic well tests or other measurements." And 'I consider this "other measurements" would 'cover this proposal that I have just made in response to Mr. Larson's question for testing of this Well No. 4. MR. GILBRETH: Well, this is to be subsequent tests after initial completion? A Yes, sir. Now I would also like to state that our start of engineers here in Anchorage would be most happy tO sit down with the Commission's staff and work out a measurement procedure that is satisfactory to the Com- R COURT REPORTERS WE~T EIGHTH AVENUE -- SUITE ~1 277-471:3 ANCHORAGE, AL.ASKA , 1 2 3 4 5 $ ? 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 - 31 - mittee. HR. GILBRETH: Well, I think the com~ittee certainly wants to adopt something that you can live with. It's just. a matter of being sure that everybody' it. A Yes. MR. WILLIAMS: HR. KUGLER: s happy with it and can live with 2 here, your preliminary well tests, what was the duration of the tests of the "A"? A Those are all 24-hour tests. HR. KUGLER: 24-hour tests. And 'you feel like you have a' lot of confidence in this 2115 GOR? That this is not one of these erratic tests perhaps? It could be higher or loWer? A . We' think it's representative. We did run a repeat test the following day .that was ~2200 or something like that, but we haven't had time to do very much additional testing. MR. KUGLER: Did you get any water with this? A Two-tenths of one percent. MR. KUGLER: Two-tenths. unpredictable here where -- A This "A" ppol seems to be . It's becoming more predictable as we gain additional information. MR. KUGLER: How long has the No. 11 been producing in ~¢ R COURT REPORTERS WEST EIGHTH AVENUE ~'SUIT~ ~ 277-4713 ' ANCHORAGE, AI.,ASKA Mr. Kugler? Yes, Fred, I wanted to ask on this Exhibit 10 · 11 12 13 14 15 1G · 17 18 10 20 21 23 24 25 the "A" pool? A Well, a period of a few months. MR. KUGLER: And what did that water calculate out? About 45~o?" A That ' s right. MR. KUGLER: About 45, and this is two-tenths? expect water to increase in it? A - 32 - was' 107 A Do you In which well? MR. KUGLER: ~ No. 4. No, I can't predict that it' will not bUt I don't expect it to any way. ' MR. KUGLER: And the other w~ll that was on production Is it making a great deal of water? No. No, 10 was not making any substantial water. MR. KUGLER: That's all the questions I have. MR. WILLIAMS: Any further questions from the Commit'tee~ MR. LARSON: I would just like to ask -- MR. WILLIAMS: Mr. Lar son, MR. LARSON: Can you -- do you have any information regarding relative structural position of the "A" sand in, say, 10, 4, A and 117 There is some variation but no substantial variation in structural position. MR. LARSON: Would the high GOR in No. 10 suggest a gas cap? R & R COURT REPORT~ER~ 8~! WEBT EIGHTH AVENUE --- SUITE E 277-47 ! 3 ANCHORAGE, AI..~K& 1 2 3 4 5 $ ? 8 9 10 11 12 13 14 15 16 17 18 2o 21 22 23 24 25 - 33 - A I don't believe that I can say that positively. It might but we've pretty well perforated the entire sec- tion in that well. . MR. LARSON: That well was completed, ~ith producing thro~gk individual strings of tubing, is that not right? A 'A single tubing. A single'completion. MR LARSON: A single completion. Oh, it does not have any production from -- A Q No,. sir. ' -- lower zones? Thank you. MR. WILLIAMS: Any further questions from~the Committee~ Any questions fxm the audience? ' MR. SWAN: Before we close the case may I offer Pan American's Exhibit 1 and Exhibit 2 into evidence? MR. WILLIAMS: You may, and.we will accept them as such. We don't have to worry about any counter or cross examination or anything this morning, do we?~ Pretty simple. MR. SWAN: And you're not going to get a clqsing State- ment unless you want it. (Laughter) : MR. WILLIAMS: That was my .next .question. Has everybod asked all the questions and said all they Want to this morning then? Hearing no further -- MR. VONDER AHE: One thing.~ MR. WILLIAMS: Mr. Vonder Ahe? MR. VONDER AHE: When you said that the water production R E R COURT REPORTERS 82BWEBT EIGHTH AVENUE -- SUITE ffl 277-4713 ANCHORAGE, AL,A8KA 1 2 3 4 5 $ ? 9 10 11 12 13 14 15 16 17 18 19 20 21. 22 23 24 25 in 4 and in 10 are -- the cut is so low, would this high cut in 11 indicate that you might have a bum casing job, cement job? A No. We have evidence in these wells that there may be some water in the lower part of the sand, and my pre- sumption is that in this case there may have. been some form of communication in that particular well so that our perforations that we attempted to locate above the water were not effective in excluding the water in the . , well. MR.V0NDER AHE: You might 'have some vertical permea- bility? A j ourned. it docun~ I~ required b~' from P~tm~um That could be a possible answer, yes, sir. MR. VONDER AHE: Thank you. MR. WILLIAMS: Anything further? This hearing is ad- -- END OF PROCEEDINGS -- R & R COURT, REPORTERS 277.4713 ANCHORAGE, AI.~SKA
