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Home My WebLink AboutCO 093Conservation 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. 0_(~ Conservation Order Category Identifier Organizing RESCAN Color items: Grayscale items: Poor Quality Originals: Other: DIGITAL DATA OVERSIZED (Scannable with large plotter/scanner) [] Diskettes, No. /Er/ Maps: [] Other, .No/Type [] Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) Logs of various kinds [] Other NOTES: BY: ROBIN ~ Scanning Preparation Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION' YES NO Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: ~ YES ~ NO ~MARIA DATE: ~.~ '-//- ~ /SI '~~ (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL ATTENTION I$ REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALITY, GRAYSCALE OR COLOR IMAGES) I General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Re: THE APPLICATION OF THE UNION OIL ) COMPANY OF CALIFORNIA for redefinition ) of the Trading Bay Middle Kenai Oil ) Pools, for revision of certain existing ) pool rules, for pressure maintenance ) projects in the Trading Bay Field and ) for revocation of Conservation Order ) No. 57 ) ) ) Conservation Order No. 93 Trading Bay Field Trading Bay Middle Kenai "B" Oil Pools Trading Bay Middle Kenai "C" Oil Pools Trading Bay Middle Kenai "D" Oil Pools Trading Bay Middle Kenai "E" Oil Pools Trading Bay Hemlock Oil Pool July 31, 1970 IT APPEARING THAT: 1. The Union Oil Company of California submitted an application dated June 12, 1970 requesting the referenced order. 2. A notice of public hearing was published in the Anchorage Daily News on June 17, 1970 pursuant to Title 11, Alaska Administrative Code, Section 2009. 3. A public hearing was held in the Ben Crawford Memorial Building, Anchorage, Alaska on June 29, 1970. Testimony was presented by the applicant. AND IT FURTHER APPEARING THAT: 1. Testimony indicates that significant differences occur in the reservoir and fluid characteristics of the various hydrocarbon-bearing sandstones. 2. Testimony given at the hearing on Conservation File No. 57 indicated the gas ~roduction was from a non-associated gas pool, but testimony now indicates it is associated gas from a saturated oil pool. .3. There are numerous separate pools not in communication with each other, but the erratic and unpredictable occurrence of separate pools makes it administratively impractical to isolate the individual pools for conservatiom purposes. 4. Previous designations of oil and gas pools should be changed and new oil pools designated. 5. Insufficient evidence was presented to justify defining the top of the Middle Kenai "B" Oil Pools at the depth proposed by the applicant. CONSERVATION ORDER NO. 93 July 31, 1970 6. Many of the individual pools are of insufficient areal extent to justify installa- tion of a pressure maintenance project. 7. The installation of pressure maintenance projects may result in maximum oil recovery from the proposed Trading Bay Middle Kenai "C'~ and ~:DTM Oil Pools and the Trading Bay Hemlock Oil Pool. 8. Correlative rights will not be adversely affected by designation of new oil pools or by pressure maintenance projects. 9. Flexibility in locating, converting, and testinK wells may be necessary because of reservoir configuration and characteristics. 10. The complicated reservoir configuration and characteristics necessitate careful observation of reservoir performance to achieve maximum oil recovery. 11. Downhole con~ningling of production from some pools will increase oil recovery. NOW, TtlEREFORE, IT IS ORDERED TI-{AT the following rules apply: RULE 1. Area ~0/'~ere Field Rules Are Applicable The area described, as follows will. be affected by these rules: ?.9N, R13W, S.M. Section 3: NW 1/4, W 1/2 SW 1/4 Section. 4: E 1/2, SW 1/4, S '1./2 Iq'W .'l./4, NE 1/4 NW 1/4 Section 5: E 1/2 SE 1/4, SW 1/4 SE 1/4 Section 8: NE 1/4 Section 9: N 1/2 T10N, R13W, S.M. Section 27: E 1/2 Section. 33: S 1/2 SIC 1/4, ~lZ ]./4 SE 1/4 Section 34: SW ]./4, N ]./2 R~LE 2. Defi'nition of Pools (a) The Trading Bay Middle Kenai '~B~ Oil Pools are defined as the accumulations of oil and gas occurring in the .interval which corre- late with the interval 3200' to 4585', drilled depth, in the Union Oil Company of California Trading Bay State A-14 Well. (b) The Trading Bay Middle Ke'nai "C'~ Oil Pools are defined as the accumulations of oil and gas occurring in the intervals which correlate with the interval 4,585' to 6,225', drill, ed depth, in the Union Oil Company of California Trading Bay State A-14 Well. (c) The Trading Bay Middle Kenai ~'D~' ()il Pools are defined as the accumulations of oil and gas occurring in the intervals which correlate with the interval 6,225' to 7,025', drilled depth, in the Union Oil Company of California Trading Bay State A~14 Well. -2- CONSERVATION ORDER NO. 93 July 31, 1970 (d) The Trading Bay Fiiddle Kenai "E'~ Oil Pools are defined as ti~e accumulations of oil and gas occurrin~ in the intervals which correlate with the interval 7,025' to 7,425', drilled depth, in the Union Oil Company of California Trading Bay State A-14 Well. (e) The Trading Bay Hemlock Oil Pool is defined as the accumulations of oil and gas occuring in the interval which co.rrelates with the interval 5,380' to 5,720' in the Union Oil Company of California Trading Bay #1-A Well, but which are not common to the accumulation of oil and gas occurring in the interval 10,275' to 10,635' in the Texaco Superior TS No. 1 Well. RULE 3. Comming.!ilng Commingling in the well bore of production from the Trading Bay Middle Kenai '~D~' and '~E~' Oil Pools is allowed, provided each well is equipped to permit separate testing of the defined pools for allocation of pro- duction. RULE 4. Sp acing Acreag~e_ Not more than four (4) completed oil wells shall be allowed in each of the defined pools in any governmental quarter sec~'ion. RULE 5. Spacing_ Fqqtage No oil well shall be completed in any defined pools closer than 660 feet, true measured distance~ to any other oil well in the same defined pools. RULE 6. Casing and Cement ing_ jReRu_i_[ements (a) Surface casing shall be landed at not less than 1.,000 feet and cement shall 'be circulated .to the sea floor. Casing and. control equipment shall be hydrostatically tested to not less than 1,000 pounds per square inch pressure before drilling 'the shoe. (b) Produc'tion casing shall be landed through th.e completion zone and cement shall cover and extend to at least 500 feet above each potentially productive sand ir.~terval. The use of multi-stage cementing procedures shall be permitted. Alternatively, a casing string shall be adequately cemented at an intermediate point and a liner landed through the completion zone. If a liner is run, the annular space behind the liner shall be filled with cement 'to at least 100 feet above the casing shoe, or the 'top of the liner shall be squeezed with sufficient cement to provide at least 100 feet of cement between the liner and casing annulus. Cement must cover all potentially productive intervals behind the liner. Casing and well head equipment shall be hydrostatically tested to not less than 2,000 pounds per square inch pressure. -3- CONSERVATION ORDER NO. 93 July 31, 1970 RULE 7. Bottom Hole Pressure Surveys A key well bottom hole pressure survey shall be conducted in each of the defined pools upon Committee request; provided, however, such surveys shall not be required more often than twice in any calendar year. The time and length of survey, number and location of wells, datum and other details x~,ill be determined by the Committee upon consultation with the Operators. RULE 8. Pressure ~faintena.nce Projects The injection of water, for the purpose of pressure maintenance, secondary recovery or of conducting injectivity tests is permitted i~ the Trading Bay tliddle l~enai ~'C'~ and ~DTM Oil Pools and. the Trading Bay Hemlock Oil Pool. A semi-annual progress report detailing project operations and results shall be submitted to the Committee within 'two mon'ths after each semi-annual period., with the first report to cover operations through December 31, 1970. RULE 9. Administrative Approval Upon request of the applicant and a showing that all affected parties have 'been notified of such request, the Committee may' authorize the drilling of any well at any location, the 'termination or suspension of any pressure maintenance project, the testing or conversion of any well, or any other operation reasonably designed to further the purposes of a pressure maintenance program. RULE 10. Other Conservation Orders Conservation Order No. 57 and Rule l(c) of Conservation Order No. 69 are rescinded. RULE 11. Exceptions Allowed All wells previously completed in accordance with then existing conser- vation orders that may be in conflict with these rules are hereby allowed exceptions to such portions of these rules ~ith which any such well may be in conflict. DONE at Anchorage, Alaska, and dated July 31, 1970. R- 'i'~arsh'all', J'r ~ E~cutive Secretary Alaska Oil and Gas Conservation Committee -4- CONSERVATION ORDER NO. 93 July 31, ].970 Concurrence: Homer L. Burrell, Chairman Alaska Oil and Gas Conservation Committee Alaska Oil and Gas Conserv~ftion Committee -5- ~ay 18~ 1981 ADMINISTRATIVE APPROVAL NO. 93°6 Re: Application of Union Oil Company of California,, to redrill, complete and produce the Trading Bay Unit A-17RD well. Mr. Robert T. Anderson District Land Manager Union Oil Company of California P. O. Box 6247 Anchorage~ Alaska 99502 Dear Mr. Anderson: The referenced, application was received, on May 18~ 1981 and stated, that the subject well will provide an effective "B" Zone withdrawal point in the II-A fault block° The Alaska Oil and Gas Conservation Commission hereby authorizes the drilling, completion of the referenced %~ell pursuant to Rule 9 of Conservation Order No. 93. Yours very truly, }larry W. Kugler Commi s sione r BY THE ORDER OF THE CO~MISSION ~rch 23, 1981 A D M I N I S T R A T I V E A P P R O V A L NO. 93.5 Application of Union Oil Company of California~ to redrill, complete and produce the Trading Bay Unit A-gRD well. Mr. Robert 'T. Anderson District Land Manager Union Oil Company of California P. O. Box 6247 Anchorage, Alaska 99502 Dear Mr. Anderson The referenced application was received on March 23~ 1981 and stated that the subject well will provide an effective F. emlock withdrawal point in the II-A fault block. The request was made pursuant to Rule 5 (b) of Conservation Order No. 57. This order was recinded by Conservation Order No. 93 on July 31, 1970. The Alaska Oil .and Gas Conservation Commission hereby authorizes the drilling~ completion of the referenced well pursuant to Rule 9 of Conservation Order No. 93. Yours very truly, Harry ~. Kugler Commissioner BY THE ORDER OF THE COMMISSION March 23, 1981 A D M I N I S T R A T I V E A P P R O V A L NO. 93.4 Re: Application of Union Oil Company of California, to redrill, complete and. produce the Trading Bay Unit A-24RD well. Mr. Robert To Anderson District Land Manager Union Oil Company of California P. O. Box 6247 Anchorage, Alaska 99502 Dear Mr° Anderson: The referenced application was received on March 23, 1981 and. stated that the subject well will provide an effective "B" zone withdrawal point in the II-A fault block. The request was made pursuant to Rule 5 (c) of Conservation Order No. 57. This order %~s recinded by Conservation Order No. 93 on July 31~ 19.70. The Alaska Oil and Gas Conservation Commission hereby authorizes the drilling, completion of the referenced well pursuant to Rule 9 of Conservation Order No. 93. Yours very truly~ Harry W. Kugler.,~ Commi s s i one r BY THE ORDER OF THE COMMISSION ALASKA OIL AND GAS COHSERVATION COMMITTEE May 7, 1976 A D M I N I S TRA T I V E A P P R O V A L N O. 93.3. Re' Recompletion of Trading Bay State ~A-15 well in the Trading Bay Field Union Oil Company of California 909 W. 9th Avenue Anchorage, Alaska 99501 Gentlemen- union Oil Company of California has requested administrative approval pursuant to Conservation Order No. 93 to recomplete the subject well in the Trading Bay Middle Kenai "E" and Hemlock Oil Pools and to com- mingle the production from these two pools in the well bore. The Trading Bay State A-15 well is presently completed as a Hemlock Oil Pool producer and averages less than 4.0 BOPD. The operator states that this rate is insufficient to justify continued production. There is a ppssibility that a successful completion in the Middle Kenai "E" sand .. pool could bring the combined production rate up to economic levels. If commercial rates can not be achieved by this .well and the well bore is abandoned, it will be a factor toward earlier abandonment of the Monopod platform and, consequently, the secondary recovery project now in effect. The A-15 well lies within the area subject to approved pressure main- tenance project approved by Conservation Order No. 93. Pursuant to Rul'e 9 of Conservation Order No. 93, the Oil and Gas Con- servation Co~ittee authorizes the recompletion of the Trading Bay State A-15 well in the Trading Bay Middle Kenai "E" and Hemlock Oil Pools and permits colu~ingling of the production in the well bore. Done at Anchorage, Alaska and dated May 7, 1976. Very truly yours, '"" ..., .... :.,:f.. ,. Thos. R. ~arshall, Jr'. Executive Secretary ALASKA OIL AND GAS CONSERVATION CO~ITI'EE December 8, 1975 Re,: m ADMI )('ISTRA'TIVE APPROVAL ., Recompletlon of Trading Bay State #.A-14 well in the Trading Bay Field Union Oil Company of. California gO9 W o 9th Avenue Anchorage, Alaska 99501 .... Gentlemen: ...... . ....... . ' ' N O. 93.2. union Oil Company of California has requested administrative approval pursuant to Conservation Order 'Ilo. 93 to recomplete the subject well in the Trading Bay Middle Kenai "C" Oil Pools as an. oil producer, l The proposed .recompletion will be approximately 480 feet from the producing interval · '...-.=~ in the.Trading Bay State ~A-23 well. -The production histories of the ~Trading Bay State ~A-lO, #A-22, #A-23j and~i.~A'25 wells.'~indicate that a significantI amount of oil~ill'~not be recovered .during the life of. the" field Without'additional w!.thdrawals'~.in the area'~ adjacent to.'the Trading Bay State.~'~Ar23.Well.' ~. The' etlon-of'the-Trading Bay] State #A'14 "~:...well will provide-the additional thdrawal sweep:r~,efficien Pursuant to Rule 9 of Conservation va ti on 'Committee r authori zes .the recomPl H. Hamilton Member' ,' ?.the Oil 'and Gas IC~nser '""the <Trading i, Bay State , A1 aska'...and '.da ted .' December .: 8, '. 1 975. /. ~ILLI,4~ ,4. E&4N, ~OYERNOI~ . . , . ~IVI~IO~ OF OIL ~D ~ 001 POrCUPInE ~IVE -- ~C~O~E ~P~04 . . ~~ OIL ~ GAS CONSERVATION CO~I~EE April 26, 1973 A D M'I N I'S'T R'A T I V E A P P R O V A L NO. 93.1 Re:. Drilling, completion and production of' Trading-Bay State #A-30 Well in the Trading Bay Field, '- Union Oil Company of California 909 .W. 9th Avenue Anchorage, Alaska 99501 Gentlemen: Union Oil Company of California has requested an exception to Rule 4 of Conservation Order No.. 93 to drill the Trading Bay State #A-30 well in' the Trading Bay Field. The subject well will be the fifth well in the Trading Bay Middle Kenai "D" Oil Pools in a governmental quarter section; more specifically the SW 1/4, Section 4, TgN, R13W, S.M. The request is based on the need for a replacement withdrawal point to increase the sweep efficiency of the wa~er flood along the northern flank of the "D"~ Pools' structure. ~ Pursuant to Rule 9 of Conservation Order No. 93, the Oil and Gas Conser-. ration Committee authorizes the drilling, completion and production of the Trading Bay State #A-30 well in the Trading Bay Middle Kenai "D" Oil Pools subject to an approved drilling permit. Done at Anchorage, Alaska and dated April 26, 1973. Very truly yours, Chairman Robert T. Anderson District Land Manager Alaska District Unocal Oil & Gas Div~'~ i Unocal Corporation PO. Box 190247 Anchorage, Alaska 99519-0247 Telephone (907) 276-7600 UNOCAL March 9, 1988 Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99504 WEST FORELAND AREA State of Alaska Ifa'ding Bay field' Conservation Order #93 Gentlemen: In compliance with Conservation Order #93, Rule 8, enclosed is the Twenty- Fifth Semiannual Progress Report for the Trading Bay Field Pressure Main- tenance Project. Enclosure Very truly yours, ,~ ,~ ~/ / , L/~.~~ ,. / Robert T. Anderson ./ RECEIYEI~, Alaska 0ii & Gas Cons, Anchorago THIRTY-FIFTH SEMIANNUAL PROGRESS REPORT TO THE STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION CONSERVATION ORDER NO. 93 PRESSURE MAINTENANCE PROJECT TRADING BAY FIELD "C" AND "D" POOLS FAULT BLOCK II-A DATA TO JANUARY 1, 1988 PREPARED BY: Faye W. Sullivan, Engineering Assistant Alaska Oil & Gas Cons. Commbslom Armhorage: INTRODUCTION In compliance with Conservation Order No. 93, Rule 8, the Thirty-fifth Semiannual Progress Report is submitted to the State of Alaska Oil and Gas Conservation Commission. GENERAL COMMENTS The Trading Bay Field pressure maintenance project consists of two distinct water injection operations in the 'C' and 'D' zone of the II-A fault block. The 'C' zone project is into its sixteenth year of operation. There are four producing wells and water injection has been suspended since June 1986. Cumulative water injection as of January 1, 1988 is 26,690,876 barrels while cumulative oil production since the beginning of the pressure maintenance project is 13,628,441 stock tank barrels. The 'D' zone project is into its eighteenth year of operation. There are three producing wells and water injection has been suspended since June 1986. As of Oanuary 1, 1988, cumulative water injection is 60,8~0,395 barrels while cumulative oil production since the beginning of the pressure maintenance project is 21,786,711 stock tank barrels. PROJECT RESULTS AND OPERATIONS 'C' Zone Production from the four producers is averaging 340 BOPD. The producers are A-9, A-ii, A-14 and A-32. The water cuts of the four wells range from zero to 80 percent. Exhibits I, II and III show pertinent production and pressure history for the 'C' zone waterflood. The current pressure calculated for the 'C' zone by material balance methods (431 psi) may be lower than what would be measured by a pressure buildup survey. Discontinuation of water injection during June 1986 is the reason for the potential calculated bias. 'D' Zone The three producing wells in the 'D' zone, A-2, A-9 and A-ii are averaging 189 BOPD. Water cuts vary from 41 to 69 percent. Exhibits IV, V and VI show pertinent production and pressure history for the 'D' zone waterflood. EXHIBIT I TRADING BAY FIELD PRESSURE MAINTENANCE PROJECT - "C" POOLS SUMMARY OF PERTINENT DATA 1/1/88 1. Date of First Oil Production From Pool 2. Date Test Injection Started 3. Cum. Oil Since First Production - STB 4. Cum. Oil Since Injection Started - STB 5. Cum. Oil Since Injection Started - Res. BBLS 6. Cum. Free Gas Produced Since Project Started - Res. BBLS 7. Cum. Water Production Since First Production - B8LS 8. Cum. Water Produced Since Project Started - BBLS 9. Cum. Water Injected Since Project Started - BBLS 10. Initial Average Reservoir Pressure ~ -4400 ft. - psig 11. Current Average Reservoir Pressure ~ -4400 ft. - psia 12. Number of Injection Wells 13. Number of Production Wells 14. Number of Idle Wells 15. Average Water Injection Rate 2nd half of 1987 - BBLS/Day 16. Average Oil Production Rate 2nd half of 1987 - BBLS/Day June, 1967 April, 1972 18,273,707 13,628,441 14,971,628 7,199 952 16,700,922 16,623,613 26,690,876 2,037 431 0 4 8 0 40O TRADING BAY FIELD C ZONE, 2A FAULT BLOCK PRESSURE @ DATUM -4,400'ss- 2400 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 2200 '~ 2000 n"18oo n,.16oo 01400 01200 0 1000 ~--- 800 6O0 4O0 2O0 2600 .. TRADING BAY FIELD D ZONE, 2A FAULT BLOCK PRESSURE @ DATUM ~-5,628'ss 2400 2200 2000 =31800 1~1600 01400 0 1200 6O0 4( 1979 ~'1980 1981 1982 1983 1984 1985 :19861987 ~19881989 1990 1991 1992 1993 1994 1995 1996 1997 1998' EXHIBIT IV TRADING BAY FIELD PRESSURE MAINTENANCE PROJECT - "D" POOLS SUMMARY OF PERTINENT DATA 1/1/88 1. Date of First Oil Production From Pool 2. Date Test Injection Started 3. Cum. Oil Since First Production - STB 4. Cum. Oil Since Injection Started - STB 5. Cum. Oil Since Injection Started - Res. BBLS 6. Cum. Free Gas Produced Since Project Started-Res. BBLS 7. Cum. Water Production Since First Production - BBLS 8. Cum. Water Produced Since Project Started - BBLS 9. Cum. Water Injected Since Project Started - BBLS 10. Initial Average Reservoir Pressure ~ -4400 ft. - psig 11. Current Average Reservoir Pressure ~ -4400 ft. - psia 12. Number of Injection Wells 13. Number of Production Wells 14. Number of Idle Wells 15. Average Water Injection Rate 2nd half of 1987 - BBLS/Day 16. Average Oil Production Rate 2nd half of 1987 - 8BLS/Day November, 1967 March, 1970 26,296,328 21,786,711 25,484,846 13,872,407 11,795,179 11,784,386 60,860,395 2,637 1,798 0 7 0 187 TRADING BAY FIELD "C" POOL, 2-A FAULT ,BLOCK IlllIllll[llllllllllllllll IIlllllllllllll IllllIIIlllllllllllllll I Illll Illllllllllllll[!lll IIIII II1111111111111111111111111 IIIIIIIIIIII11111111111111111 IIIIIIIIIIIii111IIIIIIII!1 IIIIIIII111111I IIIIIIIII11111111111111 I IIlll Illlllllllllllllllll IIIII Illllllllllllllllllllllllll Illlllllllllllllllllllillllll flllllllllllllllllllllllll III11111111III~ Illllllllllllllllllllll IIill llllllllllllllllllll II!11 IIIlIHIIIIIIIIIIIIIIIIIIII !1111111111111111111111111111 IIIIIIIIII1111111111111111 IiilIIILLJ,I-14~ .1111~IIIII I!I11 IIIIil11111111111111 illlll Iii111111111111111111111111 II111111111111111111111111111 IIIIIII1111111111111111111 IIII1~1~11111111 JTT31IIIIIIIIIIIINIIII Il Ill IIII1111111111111111 ~11 III IIIIIIIIIIIIIIIIIIIIIIIII!1 JJllllllllllllllllJJJllllllll J~llllllllllllllllllllllll J.l.l~llllllllll 1111111111111111111'l',14d Ii111 Illllllllllllllll-III illlll IIIIIIIIIIIIIIIII1111111111 Illlllllllllllllll'lllllllll !1111J Illlllllllllllllllll I F[IIIIIIIIIIll IIIIIIIlllllllllllllllf II111 11111111111111111111 !1~1,111 II1111111111111111111111111 IIIIIIIIIIIIIIII1111111111111 J JlllJllllllJlllllllllllll II1111111111111 IIIlllllllllllllllillll I!111 IIIIIILIIIII~'NJIII ~1111 !11111111111111111111111111 Illllllllllllllllllllllllilll Illl Illlll IIII1-11111111 II11111111II111 IIilll111IIitli1111111I I!11I Id"t4rlN~I~I~/FIIIIIYI~ !11111 I!1111tll111111111111111111 !1111111111111111111111111111 [JjJllllllllllllllllllllll Illllllllllllll IIIIlllllllllllilllllll ~ ~lllllllJlllllll[lll ill-Iii IIIII!111111111111111111111 IIIIIIIIIIIIIIIIIII1111111111 IIIlllllllilill~kllillllll~ I11111111111111 IIIIIIil111111111111111 IIIII llllllllllllllllllll illll illlllll~llllllllllllllllll IIIIIIIIIllllllllilllllllllll il[ll]lJlll/lJ~[ll'l'N~'ki~' Illllllllllllll Illllllllllllllllllllll I1111 lllllllllllllll.lllll !11111 Illlillllllllllllllllllllil IIIIIIIIII1111111111111111111 ,,,,,,,,~,.,,,,,,.,,~, ,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,, ....... ,,,,, ,,,,,,,,,,,~,,,,,,, ~,,,,, ,,,,,,i,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,. 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Illl i1111iiil11ii11i[[111 iiiiiil1111111iiiiiil111111111111111 iiiii iiiiiiiiiiiiii1111 [Liiilii[ii[ilii~[ii~ll ~I 111i 1111111111111111 .!11111ii1111[[]1iil1'! !1 .!11!1 $i11111111111111 i 111111111111111111111111111111 IiiiHiiiiiIiiiiIiiiiIiiiiililiililIi lllllllllllllllllllllltlllltl 11111111111111111111]1111111 1_ z'e 77 I 17,:_, 1 8', I I I I Z,C:X:X3 IOO Z 0 n~ bJ Union Oil and Ga~...r'ivison: Western Region Union Oil Company of California P.O. Box 6247, Anchorage, Alaska 99502 Telephone: (907) 276-7600 union Robert T. Anderson District Land Manager May 15, 1981 Oil & Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99504 TRADING BAY FIELD State of Alaska Application to'Drill and Complete' Trading Bay State A-17 Rd. (34-4) Trading Bay Field~-Mo~°podPlatform ADL-18731 (8-86-71-5575-601353) Gentlemen: Union Oil Company of California hereby requests approval toredrill and produce the above captioned well to be completed as a "B"-Zone Producer in the II-A fault block pursuant to Rule 9 of Conservation Order No. 93. The subject well will be drilled from the Monopod Platform and will provide an effective "B"-Zone withdrawal point in the II-A fault block. We would appreciate your favorable consideration of this request. Very trulY yours ~derson sk cc: Ann Lannin-LA Office MAY 1 8 1981 Alaska Oil & 6as Cons. Commission Anchora~o Union Oil and Gas .Divison: Western Region Union Oil Compa of California P.O. Box 6247, Anchorage, Alaska 99502 Telephone: (907) 276-7600 union Robert T. Anderson District Land Manager March 18, 1981 Oil & Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99504 WEST FORELAND AREA State of Alaska Application to Drill and Complete Trading Bay State A-9 Rd. (33X-4) Trading BayField, Monopod Platform ADL-18731 (8-86-71-5575-601353) Gentlemen: Union Oil Company of California hereby requests approval to redrill and produce the above captioned well to be completed as a Hemlock producer in the II-A fault block pursuant to Rule 5 (b) of Conservation Order No. 57. The subjectwell wilI be drilled from the MOnopod platform and will provide an effect'ive Hemlock. withdrawal point in the II-A fault block. We would appreciate your favorable consideration of this request. sk Very truly yours, · Union Oil and Gas.r~ivison: Western Region i, Union Oil Company of California P.O. Box 6247, Anchorage, Alaska 99502 Telephone: (907) 276-7600 unl, n Robert T. Anderson District Land Manager March 18, 1981 Oil & Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99504 TRADINGBAY FIELD State of Alaska Application to Drill and Complete Trading Bay State A-24 Rd. (44-4) Trading Bay Field, Monopod Platform ADL-18731 (8-86-71-5575-601353) Gent 1 emen: Union Oil Company' of California hereby' requests approval to redrill and produce the above captioned well to be complete as a "B"-Zone Producer in the II-A fault block pursuant to Rule 5 (c) of Conservation Order No. 57. The subject well will be drilled from the Monopod Platform and will provide an effective "B"-Zone withdrawal point in the II-A fault block. We would appreciate your favorable consideration of this request. Very truly yours, sk Robert T. Anderson District Land Manager Union Oil and Gas ~' ision' Western Region Union Oil Company of California P.O. Box 6247, Anchorage, Alaska 99502 Telephone: (907) 279-7681 unl, n 'April 19, 1976 State of Alaska Oil and Gas Conservation Committ 3001 Porcupine Drive Anchorage, Alaska 99504 Attention: Mr. Tom Marshall Gentlemen: TRADING BAY FIELD Cook Inlet, Alaska Application for Recompletion in Trading Bay State A-15 Conservation Order No. 93 ,', Union Oil Company of California, as operator of the Trading Bay Field, for itself and Marathon Oil Company, requests administrative approval for the recompletion of Trading Bay State A-15 well and the commingling of the "E" and Hemlock Oil Pools production. This request is made through the Committee's authority granted in Conser- vation Order 93 findings and Rule 9, wherein the Committee may approve any operation reasonably designed to further the purposes of a pressure maintenance program. Applicant contends that the establishment of pressure maintenance as well as all other prudent operations within any field is to maximize recovery and to prevent waste of the resource within economic practicalities. Well TBS A-15 averaged less than 40 BOPD from the~p~_~_...~p~ during the past year. This rate is insufficient to justify continued production and the well will have to be shut-in. The only remaining potential for additional rate is in the "E" Sands. The potential rate increase is not sufficient to justify pulli~g'"'~"~g and isolating the "g" from the Hemlock Zone. Therefore the only alternative to shutting in the well is the perforating of the "E" Sands through tubing and commingling of production with the Hemlock. APi{ 0 1976 State of Alaska Oil and Gas Conservation Committee Application for Recompletion in Trading Bay State A-i5 - 2 - April 19, 1976 The optimization of the use of each wellbore to most effectively recover the maximum amount of oil must.~,.~.~ accomplished to prevent ~rematu~e t ermSn~t,.~ 9.~,.P.~ ,..~ b~ .. P r ~p s~r~"i"'~ii~ ~~'. 'p'~ ~ ~ ~ ~i~[. ~ "" t ~'~" "~'h e' "~"i j ~ orm op'~'r'~'~'~.' As'th'e"~m~"~f"pr°dUcing WellS"a'~their contribution to the total rate is reduced, then the cost per barrel of operating expenses will increase proportionately in the remaining waterflood wells and increase the economic limit of the floods. The recompletion of TBS A-15 is a good example of this very concept of the need to optimize each wellboreo Well TBS A-15 is located on Union-Marathon's lease ADL 18731 in the West half of the Northeast quarter of Section 4 in Township 9 North, Range 13 West, S.M. as indicated on the attached plat. This project is within an agreement area in which Union, Marathon, Texaco and Superior participate in costs and benefits and all such parties have indicated their approval to the proposal. A copy of this application is concurrently herewith being mailed certified to the equity owners as well as Atlantic Richfield Company, a contiguous lease owner. The granting of this request will not adversely affect any parties correlative rights, but will be beneficial to the participants and the State of Alaska. Your favorable consideration of this application is respectfully requested. Very truly yours, cc: Marathon Oil Company Texaco, Inc. Superior Oil Company Atlantic RichfieldCompany ~ "' I i A-la UN ION - MARATHON cA-9 · ~'° TEXACO- SUPERIOR ", / A-6 ' / / RISW · OW'IS~ON O~: O L AND GAC~ AJc~sko District TRADING BAY FIELD COOK INLET, ALASKA WELL LOCATION TRADING BAY STATE A-15 (~1-4) = I000' APR. IC:j~76 Union Oil and Ga(' "vision' Western Region Union Oil Company of California P.O. Box 6247, Anchorage, Alaska 99502 Telephone: (907) 279-7681 Robert T. Anderson District Land Manager union November 24, 1975 State of Alaska Oil & Gas Conservation Committe~ 3001 Porcupine Drive Anchorage, Alaska 99504 Attention: Mr. Thom Marshall 'TRADING'BAY'FIELD TBS - A-14 Dear Mr. Marshall: Union Oil Company as operator, request the Cgmmittees administrative approval pursuant to Conservation Order No. ('9~)t6'thb'"'f0'i'~i~g recompletion of the subject well in the "C" ~0~e as an oil producer. ' The subject well is presently completed as a dual "D"-Hemlock pro- ducer. The proposed recompletion will be within approximately '480' to 620' from the producing interval of A-23. The "C" Zone in fault block II-A has been under pressure maintenance' Since 1972 (see attached map). The cumulative oil production has been disproportionately lowin well A-23S. The adjacent wells A-22S, A-25S, and A-10S, have produced 890,000, 1,830,000, and 880,000 bbls of oil respectively, since the beginning of the waterflood while A-23 has produced onlyl80,000 bbls of oil. A significant amount of reserves will not be recovered during the life of the field without additional withdrawals in the area adjacent to A-23. The recompletion of A-14 will provide an'~iadditional withdrawal point and improve the areal sweep efficiency. We would appreciate your approval of this request in order that work may commence as soon as possible. NOTE: EVIDENCE FOR WEST TRADING BAY NORMAL FAULT IS WET HEMLOCK HIGH I ' TO FIELD O/W'S IN TB~II'2 8~ WTB#I t CORRELAT,ONS DOUBTFUL. IN WATER INJECTOR ' I PROPOSED WELL 9 A-29 A'25 e~ A-14 · A-8 Tvo e.,~, ~o JO A-2 A-17 . r , A-21 ED A-21 Alaska District ' DW!$1Oh~ Gl: OiL AND I 500 IOOO ...... '" RADING BAY FIELD ~ ~ ~' ~' ~R[~f~~RE CONTOURS I,JOV ~6 1§75TOP/:C-7 SAND 4 Robert T. Anderson District Land Manager Union Oil and Gas Ij sion: Western Regiol~~ Union Oil Company of California i---~ ~_ _ :'t' ~ ..... February 28, 1973 ~~_~i~"T~----~ State of Alaska ""-, Oil and Gas Conservation Committee 3001. Porcupine Drive Anchorage, Alaska 99504 WEST FORELAND AREA ................................. '' state'of'Alaska ~"~[ i Tradi,ng Bay Field ~ Conservation Order //93 Gentlemen: In compliance with Conservation Order. //93, Rule' 8, enclosed is the. Fifth Semiannual Progress Report for the Trading Bay Field Pressure Haintenance Project. , Very truly yours, ,.~";? , . ,...,. ~ /."~ /,.,-' ...... / ~, ~ ~ ? / ' ..v' .,,,,,.'/ ~.., ,,,/~,m ,'"'" h' / / ,(~' t .,' ..................................... ./.~'""';/.-<~:z'~..'~. '.- ,,,"~ ...'"'~-" ! //~'::'.~.~ i" /'" Wade S/McAI I s~e'r Landman Enclosure cc: Marathon Oil Company 8 973 DIV."~IC;N OF ",)iL AND GAS ANCHORAGE FIFTH SEMIANNUAL PROGRESS REPORT TO THE STATE OF ALASKA OIL AND GAS CONSERVATION CO,qMITTEE CONSERVATION ORDER NO. 93 PRESSURE MAINTENANCE PROJECT TRADING BAY FIELD - "C" "D" & HEMLOCK POOLS FAULT BLOCK 2A DATA TO JANUARY l, 1973 8 1973 OIL AND GAS ARCHORAGE PREPARED. BY GARY E. BlJRTCHAELL - RESERVOIR ENGINEER ( I NTRO DUCT I ON · In compliance with Conservation Order No. 93, Rule 8, the Fifth Semi- Annual Progress Report is submitted to the State of Alaska Oil and Gas Conservati on Committee. GENERAL COMMENT Three pressure maintenance projects through water injection have been initiated in Fault Block 2A of the Trading Bay Field. Two of these pro- jects, the "C" Pools and "D" Pools, are active while the Hemlock Pool project is temporarily abandoned due to collapsed casing in the injection The "C" Pool project, begun in April, 1972, currently has 6 producing wells and 2 injection wells with a. third injection well being drilled as of this report time. Water injection through December 31, 1972 was 1,568,204 barrels and oil production since the start of injection was 1,162,0'55 barrels..~ The "D" P6ols project, begun in March, 1970, has 9 producing wells and 3 injection wells. Water injection through December 31, 1972 was 11,291,847 barrels and oil production since the start of injection was 8,722,708 barrels. The Hemlock project, suspended in July, 1970, due to collapsed casing in the one injection well, has not been reactivated. Future development plans include the completion of A-29, currently being drilled as a "C" pOOls injection well, and the redrilling of A-17 as a Hemlock ~injection well. In addition, it'is planned to drill a tenth de'velop- ment.producing well to the "D" Pools and add a seventh pro. ducing completion to the "C" Pools by dual completing an .existing "D" Pools producing well. Graph #1 shows daily oil production rate for the three projects. A brief summary of the results of injection for the "C", "D" and Hemlock Pools follows. PROJECT RESULTS & OPERATIONS "C" POOLS Since initiation of water injection in April, 1972, both injection wells ~have been plagued with problems. A-12RD experienced parted casing and A-26S/S sanded up. These wells were subsequently reworked and injec- tion was restored temporarily but A-26S/S sanded up again at year end. The third injection well, A-29, is currently being drilled and should go on injection in February, 1973. One producing well, A-23, has also sanded .up and current plans call for reworking this well in early 1973. Graph #2 shows the pressure-cumulative oil curve and Exhibits A & D give pertinent and historical data on this pool. "D" POOLS "D" Pools performance has been quite s~tisfactory as positive response is being seen in alq producers and no major injection problems have been experienced. One of the producing wells, A-lO has not performed as well as expected due to mechanical and scale problems but future remedial work planned for A-lO should remedy this situation'. One additional development well to improve sweep efficiency is planned for 1973. Graph #3 shows the pressure-cumulative oil curve and Exhibits B & E give pertinent and ,, historical data on this pool. HEMLOCK POOL Hemlock water injection suspended in Julys 1970, is unchanged. It is currentl~ planned to redrill A-17 in 1973 as an. injection well. Graph #4 shows the~ pressure-cumulative oil curve and Exhibits,C&F give Pertinent and o. historical data on this pool. GRAPH # I TRADING B^Y FIELD - FAULT BLOCK 2^ "C", "D" & HEI.ILOCK POOLS MOI~THLY AVG. OIL PRODUCTION RATE JANUARY [, 1973 ~: ~.~.. :_ HEMLOCK POOL ~9 _TZ 2100 GRAPH #2 1900 1700 15O0 13OO 1100 900 TRADIHG BAY FIELD - 2A "C" POOL AVERAGE PRESSURE @.-4400' VS. CUMULATIVE OIL PRODUCTION JANUARY 1 , 1973 700 1 0.0 1.0 2.0 3.0 4.0 5.0 ... 6.0 7_~ ~ n Q n 10.0 2700 20X 20TOTHE INCH 46 1242 7 x Io INCHES ~0[ IN U ':;.~. KEUFFEL & E$SER CO. GRAPH #3 25O0 23'00 2i00 !900 17OO i 50O 1300i- i!:.i!:i~-~- 2~0 4.0 6,0 lO.O 12.0 TRADING BAY FIELD - 2A "D" POOLS AVEPu~GE PRESSURE @'-5628 FT. VS, Gl ~1'" -~;,UL~ IVE OIL PRODUCTIOH JANUARY 1, 1973 .. 14..0 16.0 18.0 20,0 I_~.~,~ 20 X 20 TO THE INCH 46 1242. 'Z800 2600 '-''' ' '2400 2200 2O0O 1800 1600 140~ 2.0 GRAPH #4 REVISED 1-1-73 TRADING BAY FIELD - 2A HEMLOCK AVERAGE PRESSURE @ -6100' VS. CUMULATIVE OIL PRODUCTION JANUARY 1 , 1973 3.0 J. .. ~0 4. '. EXHIBIT A TRADING BAY FIELD PRESSURE MAINTENANCE PROJECT - "C" OIL POOLS SUMMARY OF PERTINENT DATA 1-1-73 1. Date of First Oil Production From Pool 2. Date Injection Started 3. Cumulative Oil Produced Since First Production S.T.B. 4. Cumulative Oil Since Injection Project Started S.T.B. 5. Cumulative Oil Produced Since Project Started Res.Bbls. 6 Cumulative Free Gas Produced Since First Injection Res. Bbls. 7. Cumulative t,$ater Produced Since First Production - Bbls. 8. Cumulative Water Produced Since Project Started - Bbls. 9. C~mulative Water Injected Since Project Started - Bbls. 10. Initial Avg. Reservoir Pressure @-4400 Ft..- psig. 11. Current Avg. Reservoir Pressure @ -4400 Ft. -~psig. 12. Number of Injection Wells 13. Number of Production Wells 14. Number of Idle Wells 15. Average Water Injection Rate 2nd.Half of 1972 Bbls/day 16. Average Oil Producing Rate 2n~ Half of 1972 Bbls/day 17. Average Water' Injection Rate, Dec 1972 - Bbls/day 18. Average Oil Producing Rate, Dec. 1972 - St. Bbls/day June 1967 Apri I 1972 5~ 814,380 1,162,0~5 1 .,259,574 1 ~647,939 165,8~.7 82,q~92 1,568,20~ 2.,037 957 2 6 0 4,135 4,562 9 ,.831 2,860 EXHIBIT B TRADING BAY FIELD PRESSURE F~INTENANCE PROJECT - "D" OIL POOLS SUMMARY OF PERTINENT DATA 1-1-73 1~ Date of First Oil Production From Pool 2. Date' Test Injection Started 3. Cumulative Oil Produced Since First Production S.T.B. 4. Cumulative Oil Since Injection Project Started S.T.B. 5. Cumulative Oil Produced Since Project Started - Res. Bbls. 6. Cumulative Free Gas Produced Since First Injection- Res,Bbls. 7. CUmul,ative W. ater Produced Since FirSt Produc'tion - Bbls' 8: CumUlative Water Produced Since Project Started -Bbls. 9.' 'C,umulative Water Injected Since Project Started - Bbls. ..10. Initial Avg. Reservoir Pressure @ -5628 ft. - psig. 11 ' Current Avg. Reservoir Pressure @ -5628 ft. -,psig. 12. Number of Injection Wells 13. Number of Production Wells , 14. Number of Idle Wells 15. Average ~',later Injection Rate 2nd Half of 1972 Bbls/day 16. Average Oil Producing Rate 2nd Half of 1972 Bbls/day 17. Average Water Injection Rate Dec. 1972 .- Bbls/day 18. Average Oil Producing Rate Dec. 1972- S',T. Bbls/day November 1967 March 1970 13,240,171 8,722,708 10,124,086 9,836,850 660,191 633,415 11,291,847 2,637 1,560 3 9 1 19,668 9,622 1.5~531 8,864 EXHIBIT C TRADING BAY FI ELD PRESSURE MAINTENANCE PROJECT - HEMLOCK OIL POOLS .. SUMMARY OF PERTINENT DATA 1-1-73 1. Date of First Oil Production From Pool 2. Cumulative Oil Produced Since First Production S.T.B. 3. Cumulative ~ater Produced Since First Production - Bbls. 4. Initial' Test Injection Started 5. Cumulative Water Injected For Total First Test - Bbls. 6. -Second Test Injection Started -. 7. Cumulative Water Injected Since First Test Started - Bbls. 8. Cumulative Oil Produced .Since Second Test Started - S.T.B. ,9. Cumulative Oil Produced Since Second Test Started - Res.Bbls. January l, 1967 3,166,591 144,204 November 21, 1968 40,091 March 20, 1970 343,518 1,404,231 1,599,991 10. Cumulative Free Gas Produced Since SecOnd Test Started - Res. Bbls. 830,025 ll. Cumulative Water Produced Since Second Test Started - Bbls. 12. Initial Avg. Reservoir Pressure @ -6100 ss - psig 13. Current Avg. Reservoir Pressure @ -6100 ss- psig · 14. Number of Injection Wells 15. Number of Production Wells 16. Number of Idle Wells 17. Average Water'Injection Rate, 2nd Half of 1972 Bbls/day 18. Average Oil Produced Rate, 2nd Half of 1972 - Bbls/day 19. Average Water Injection Rate, Dec. 1972 - Bbls/day 20. Average Oil Producing Rate, Dec. 1972 - S.T.B. Bbls/day 109,771 2,802 1,855 O* 4 2 O* 1,248 O* 1,385 * Injection Well Lost To Casing Collapse 7/9/71 EXii~BIT ; TRADING BAY FIELD D -"C" POOL INJECTION HISTORICAL PRODUCTION AND DATA MONTHS RATE BOPD OIL PRODUCTION MONTHLY STB CUMULATIVE STB WATER PROD. RATE GOR WATER INJ.RATE COMPUTED AV.G. PRESS. NUMBER OF WELLS BWPD CFPB BWPD PS IA PROD. INJ. IDLE 1967 June July Aug. Sept. Oct. Nov. Dec. 1968 Jan. Feb. Mar. Apr. May. June July Aug. Sept. Oct. Nov. Dec. 1969 Jan. Feb. 187 349 283 236 254 245 229 256 204 300 885 ~.~. 594 725 85O 1861 1518 !426 1915 1 747 1839 1789 2311 5,618 10,831 8,786 7,104 7,875 7,370 7,111 7,942 5,921 9,300 26,572 18,422 21,774 26,365 57,692 45,551 44,234 57,467 54,181' 57,023 50,119 71,643 5,618 16,449 25,235 32,339 40,214 47,584 54,695 62,637 68,558 77,858 104,430 1 22,852 144,626 170,991 228,683 274,234 318,468 375,935 430,116 487,139 537,258 608,~01 1 1 1 6-- 1 1 3 1 1 .1 8 1 3 3 2 3 2 6. 628 511 545 836 998 1064 345 308 271 331 722 417 383 418 076 869 993 875 827 770 801 846 0 0 0 0 0 0 0 0 0 0 '0 0 2037 ' 2010 · 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 ..... 2 0 2 0 ..... 1 0 1970 2 0 .... 3 0 3 0 3 0 3 0 3 0 1860 3 0 3 0 3 0 3 0 0 0 0 0 r-~ 1 0 0 0 0 0 0 0 EXHIBIT D TPADING BAY FIELD - "C" pOoL HISTORICAL PRODUCTION AND INJECTION DATA MONTHS RATE BOPD OIL PRODUCTION MONTHLY STB CUMULATIVE STB WATER PROD. RATE GOR WATER INJ.RATE COMPUTED AV.G. PRESS. NUMBER OF WELLS BWPD CFPB BWPD PSIA PROD. INJ. IDLE April May June July Aug. Sept. Oct. Nov. Dec. 1970 Jall. Feb. Mar. Ap ri 1- Hay June July Aug. Sept. Oct. Nov. Dec. 1971 Feb. 2482 2686 2507 2447 2571 '2819 2751 2750 2804 2301 2051 2584 3306 31 73 3018 3244 4256 43O9 6810 6292 5285 4039 5501 74,464 83,272 75,231 75,859 79,708 84,578 85,290 82,485 86,867 71,336 57,446 80,118 99,188 98,382 90,568 100,589 1 31,952 129,277 211,137 188,755 163,853 125,236 154,048 683,365 766,637 841,968 917,727 99-7,435 1,082,01 3 1,167,303 1,249,788 1,336,655 1,407,991 1,465,437 1,545,555 1,644,743- l ,743,125 1,833,693 1,934,282 2,066,234 2,195,511 2,406,648 2,595,403 2,759,256 2,884,492 3,038,540 3 5 7 8-~ 6 9 10 15 108 30 67 91 7 115 794 754 768 83O 869 820 853 888 916 1 267 1239 1135 1160 1277 1184 .lll8 883 1026 1042 1165 1117 973 857 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 · 0 0 0 1790 ' 1715 - 1635 1487 3 0 0 3 0 0 3 0 0 3 0 0 3 0 0 3 0 0 3 0 0 3 0 0 3 0 0 3 0 0 3 0 0 3 0 0 3 0 0~ 3 0 0 2 0 l 3 0 l 4 0 1 4 0 l 5 0 1 4 0 3 5 0 2 5 0 5 0 EX'HIBIT D TRADING BAY FIELD- '.'C" POOL HISTORICAL PRODUCTION AND INJECTION DATA Time Months Rate BOPD Oil Production Monthly STB Cumulative STB Water Nater Prod:Rate GOR !nj. Rate BW~D ~CFP~ BWPD Computed Ave. Press. , - ~'P~'IA -- Number of Wells Prod. Inj. Idle Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1972 Jan. Feb. Nar. Ap ri l May June July Aug. Sept. Oct. Nov. Dec. 503O 4841 4955 4748 4275 3296. 3785 3798 3746 3839 3546 3473 3499 3232 3004 4420 4811 4644 4664 4800 4594 3860 155,945 145,244 153,606 142,460 132,534 102,193 113,576 117,739 112,369 119,019 109,914 100,706 108,480 96,963 93,127 132,598 149,143 143,952 139,942 148,825 137,820 119,685 3,194,485 3,339,729 3,493,335 3,635,795 3,768,329 3,870,522 3,984,098 4,101,837 4,214,206 4,333,225 4,443,139 4,543,845 4,652,325 4,749,288 4,842,415 4,975,013 5,124,156 5,268,108 5,408,050 5,556,875 5,694,695 5,814,380 115 131 357 180 99 125 114 137 153 197 192 163 141 175 200 154 245 411 401 363 413 334 913 1530 1853 2132 2061 1738 1710 i633 1680 1799 1566 1323 1351 1318 1291 773 657 619 606 619 648 398 0 0 0 0 0 0 0 0- 0 0 0 O' 0 5138 12,940 8402 2376 6029 690 0 5826 9831 ..... 5 0 2 5 0 2 ..... 5 0 2 1330 5 0 2 ..... 4 0 3 ..... 4 0 3 4 0 3 ..... 4 0 3 4 0 3 1205 4 0 2 4 O ..... 4 0 ..... 4 0 1130 4 1 lll2 5 2 109Q~O~] 5 2 1060 6 2 1030 6 2 1008 6 2 980 ,6 2 957 6 2 957 6 2 ' 1 0 0 ~ 0 0 0 0 0 0 0 0 0 EXHIBIT E TRADING BAY FIELD "D" POOL HISTORICAL PRODUCTION AND INJECTION DATA TIME MONTHS RATE BOPD OIL PRODUCTION MONTHLY STB CUMULATIVE STB WATER WATER COMP UTE D PROD. RATE GOR INJ. RATE AVG. PRESS BWPD CFPB B!~JPD PS IA NUMBER OF WELLS PROD. I NJ. IDLE 1972 Jan. Feb. Har. April May June July Aug. Sept. Oct. Nov. Dec. 7123 7117 6443 6915 6680 8899 9857 10,283 9786 9515 9423 8864 220,816 206,385 199,758 207,440 207,095 266,956 305,560 318,791 293,574 294,963 282,703 274,782 10,382,164 10,588,549 10,788,307 10,995,747 11,202,842 11,469,798 11,775,358 12,094,149 12,387,723 1 2,682,686 12,965,389 13,240,171 1673 1702 9527 1038 1606 17,260 822 1217 23,978 762 1041 16,747 757 1051 17,781 852 847 t9,583 681 613 21,538 932 543 21,523 1158 549 20,461 1271 522 18,094 1482 393 20,925 1595 359 15,531 1635 1627 1617 1607 1590 1580 1560 1560 1560 1560 1560 1560 7 3 1 7 3. 1 6 3 2 7 3 1' 8 3 1 8 3 1 9 3 1 9 3 1 9 3 1 9 3 1 9 3 1 9 3 1 EX~IIBIT~ TRADING BAY FIELD- "D" POOLS HISTORICAL PRODUCTION AND INJECTION DATA TiHE MONTHS RATE BOPD OIL PRODUCTION WATER WATER MONTHLY STB CUMULATIVE STB PROD. RATE GOR BWPD CFPB INJ. RATE BWPD REVISED COMPUTED AVG.PRESS. PSIA NO. OF WELLS PROD. I NJ. IDLE 1969 Oct. Nov. Dec. 1970 Jan. Feb. Mar. April May June July Aug. Seot. Oct. Nov, Dec. -1971 Jan. Feb. F~ar. April ~,~ay June july Aug. Sept. Oct. Nov. Dec'. 6,326 6,048 5,719 6,035 7,572 5,998 7,675 9,116 9,640 10,029 9,822 6,429 10,823 1.0_,283 9,012 6,113 7,363 7,140 7,619 9,435 9,539 9,i97 8,802 8,492 8,004 6,923 7,456 196,111 181,449 177,289 187,086 212,041 185,940 230,254 282,601 289,213 310,922 304,504 196,887 335,542 308,627 279,394 189,521 206,182 221,340 228,577 292,499 286,183 285,115 272,854 254,748 248,124 207,704 231,154 3,759,598 3,941,047 4,118,336 4,305,422 4,51.7,463 4,703,4O3 4,933,657 5,216,258 5,505,471 5,816,393 6,120,897 6,313,784 6,649,326 6,957,953 7,237,349 7,426,868 7,633,050 7,854,390 8,082,967 8,375,466 8,661,649 8,946,764 9,219,618 9,474,366 9,722,490 9,930,194 0,161',348 13 19 14 56 23 14 20 4O 55 131 128 210 247 129 lll 108 167 498 1-67 112 59 279 537 722 '694 689 2571 1763 0 1713 0 1756 0 1938 1213 973 913 859 853 870 889 819 1067 1233 1236 898 903 964 1216 1498 1494 1610 1573 1451 1377 1323 1688 0 0 3393 4259 3355 3426 2004 4610 2053 0 2967 i254 9669 12789 10949 -7452 12882 18769 21780 I!$31 10572 2288 0 1453 im mi mmm! 2060 2030 2O00 1960 .1950 1930 1910 1885 1875 1850 1830 1810 1800 1785 1770 1760 1740 1730 1710 1695 1680 1670 1660 1650 ,' 6 0 0 6 0 0 6 0 0 7 0 7 0 6 1 5 1 6 . 1 6 1 7 '1 7 1 8 1 8 1 8 2 7 2 7 3 7 3. 7 3 7 3 8 3 8 3 8 3 7 3 7- 3 7 3 7 3 7 3 2 2 2' 2 1 1 1 1 1 1 1 1 EXHIBIT E TRADING BAY FIELD - "D" POOLS HISTORICAL PRODUCTION AND INJECTION DATA TiME RATE BOPD OIL PRODUCTION MONTHLY STB CUMULATIVE GOR STB BWPD CFPB WATER WATER PROD.RATE 'INJ.RATE BWPD REVISED COMPUTED AVG.PRESS. PSIA NO. OF WELLS PROD" INJ. IDL]E 1967 Nov. Dec. 1968 Jan. Feb. ~,~ar. April May June July Aug. Sept. Oct. NOV, 'Dec. 1969 Jan. Feb. Mar. Apri 1 May June July Aug. Sept. 695 941 1,752 I ,894 2,925 3,833 3,966 5,165 4,991 5,051 4,631 4,970 5,498 ".6,953 6,137 6,888 6,850 7,257 7,658 7,891 7,243 7,260 6,607 20,853 29,187 54,321 54,928 90,701 114,998 122,949 154,961 154,739 156,588 138,937 149,114 170,449 215,560 190,262 192,870 212,377 217,7i8 237,399 236,732 224,534 225,082 198,228 20,853 50,040 1 O4,361 159,289 249,990 364,988 487,937 :-~ 642,898 797,637 954,225 i ,093,162 1,242,276 1,412,725 1,628,285 1,8i8,547 2,011,417- 2,223,794 2,441,512 2,678,911 2,915,643 3,140,177 3,365,259 3,563,487 5 6 14 9 6 9 11 25 136 130 130 63 19 25 31 31 33 24 27 26 20 1881 2~13 1890 1371 991 812 885 728 763 753 652 567 805 937 lO31 lll7 1013 1254 1179 1199 1361 · 1482 1786 2637 2570 · 2518 2360 2230 m mm m emm em m m 2 0 0 2 0 O' 2 2 3 3 4 4 4 5 5 5 5 5 0 0 0 0 0 0 0~' 0 O. O' 0 0 0 0 ~ 0 0 0 0 0 0 ' 0 EXHIBIT F . - ~. TRADING BAY FIELD H:~,LO~K FORMATION HISTORICAL PRODUCTION AND INJECTION 'DATA' T I MONTHS RATE BOPD OIL PRODUCTION MONTHLY STB CUMULATIVE STB WATER PROD. RATE BWPD · · GOR CFPB REVISED WATER COMPUTED INJ. RATE AVG.PRESS. BWP D PS I A NO. OF WELLS PROD. - INJ. IDLE 1967 Ja~. Feb. Mar. Apri 1 ?lay june July Aug. Sept. Oct. Nov. Dec. 1968 Jan. Feb. ~-~a r. April May June July Aug. Sept. Oct. Nov. Dec. 786 360 720 746 689 518 674 617 596 574 898 1201 1383 =]669 1968 1708 1775 2116 2201 2456 2037 2011 2225 2267 24,388 10,099 22,349 22,381 21,362 15,566 20,911 19,154 17,88O 17,815 26,959 37,249 42,902 48,415 61,038 51,262 55,055 63,494 68,256 76,161 61,120 62,350 66,753 70,299 24,388 34,487 56,836 79,217 100,579 116,145 137,056 156,210 1 7'4,090 191,905 218,864 256,112 299,014 347,429 408,447 459,629 514,684 578,178 646,434 722,595 783,715 846,064 912,817 983,116 3 5 9 5 5 22 55 44 5O 4O 38 45 402 358 484 420 461 58O 474 550 586 502 507 516 510 633 680 731 716 675 666 728 738 850 1167 1424 0 0 0 0 366 0 '2790 2755 · _ 26'85 2470 0 0 0 . 0 0 0 0 0 0 1 1 EXP, IBIT F TRADING BAY FIELD - HEMLOCK FORMATION HISTORICAL PRODUCTION AND iNJECTION DATA MONTHS BATE BOPD ' OIL PRODUCTION MONTHLY STB WATER PROD.RATE CUMULATIVE GOR STB BWPD CFPB BWPD WATER I NJ. RATE REVISED COMPUTED AVG. PRESS. PSIA 'NO. OF WELLS PROD. INJ. IDLE 1969 uan. Feb. Apr. May June July Aug. Sept. Oct. Nov. Dec. lO7 J~O J all. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 2013 1879 1937 1905 1897 185t. 1802 1860 1803 1791 1825 1783 1813 ~_1541 1538 1559 1526 1311 1161 1042 372 6O8 1632 1468 62,433 52,621 60,076 57,153 58,823 55,537 55,868 57,673 54,119 55,553 54,742 55,270 56,208 43,168 47,698 46,771 47,322 39,331 35,991 32,329 11,168 18,850 48,979 45,520 1,045,549 1,098,170 1,158,246 1,21-5,399 1,274,222 1,329,735 1,385,627 1,443,300 1,497,419 1,552,972 1,607,714 1,662,984 1,719,192 I, 762,360 1,810,058 1,856,829 1,904,1 51 1,9 34,482 1,979,473 2,011,802 2,022,970 2,041,820 2,090,799 2,136,319 46 52 54 43 59 53 53 59 57 77 52 71 52 63 48 64 60 66 59 -23 5 20 25 852 228 891 485 885 272 936 0 916 0 971 0 023 0 082 0 123 0 170 0 147 0 172 0 145 198 084 036 797 829 807 678 847 726 527 379 0 0 690 i727 1659 1850 985 2071 846 0 88 i3 '2430 2415 2400 2225 2210 2200 2190 2185 2170 2165 2160 2150 2135 ,. 4 1 4 1 4 1 4 1 4 1 4 1 4 1 4 1 4 1 4 1 4 1 4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 1 1 1 1 '1 1 1 0 0 EXHIBIT F TRADING BAY FIELD - HEMLOCK FORMATIOh HISTORICAL PRODUCTION AND INJECTION DATA Ti ME MONTHS RATE BOPD OIL PRODUCTION MONTHLY STB CUMULATIVE STB WATFR WATER PROD.RATE GOR INJ.RATE BWPD CFPB BW~D REVISED COMPUTED AVG.PRESS. PSIA .NO. OF WELLS PROD. INJ. IDLE 1971 J~F1. Feb. ~lar. April May June July Aug. Sept. Oct. Nov. Dec. 1972 Jan. Feb. Har. Apr. May June Joly Aug. Sept. Oct. ?lov. Dec. 1629 1460 1502 1500 1573 1655 1660 1709 1642 1672 1382 1234 97O 1232 ~t289 1 392 1335 1400 1280 1093 1142 1320 1265 1385 53,507 40,894 46,581 45,017 48,792 49,655 51,474 52,994 49,261 51,831 - 41,453 38,241 30,085 35,716 39,962 41,773 41,396 41,991 39,692 33,874 34,269. 40,929 37,962 42,923 ,.:' 2,189,826 2,23O,720 2,277,301 2,322,318 2,371,110 2,420,760 2,472,239 2,525,233 2,574,494 2,626,325 2,667,778 2,706,019 2,736,104 2,771,820 2,811,782 2,853,555 2,894,951 2,936,942 2,976,634 3,010,508 3,044,777 3,085,706 3,123,668 3,166,591 41 81 55 60 lll 136 75 77 71 67 72 102 86 63 118 188 210 200 196 223 261 23i 232 196 376 415 306 497 768 714 873 1216 1142 1247 1242 1268 lll3 1340 1034 864 881 948 869 994 1093 829 617 637 0 0 O' 0 0 0 0 0 0 0 0 0 '2120 2110 2100 2085 2070 2055 2040 , 2035 : 2015 2000 1990 1980 1970 1960 1950 1940 1930 1920 1910 1899 1888 1877 1866 1855 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .0 0 1 1 1 2 2 2 2 2 2 '2 2 2 2' 2 2 2 2 Union Oil and Gas Divi . Western Region Union Oil Company of ,~:.T, ,~ifornia 2805 Denali Street, AnChorage, Alaska 99503 __~/1 Telephone (907) 277-1481 HI.i~-~ ~<~ ~- July 2, 1970 ~ Ufll, n_ State of Alaska 0il and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 RE: THE APPLICATION OF THE UNION OIL COMPANY OF CALIFORNIA FOR REDEFINITION OF THE TRADING BAY MIDDLE KENAI OIL POOLS AND FOR PRESSURE MAINTENANCE PROJECTS /.~%~onservati°n Fiie NO' 93 Q Gen tl emen: In accordance with the request of the Oil and Gas Conservation Committee at the public heari.ng held June 29, 1970 to consider the subject application, Union Oil Company of California submits the following information: C Pools D Pools Hemlock Pool K rw~o Mobility Ratio, K ro.~w 2.266 Source of Special Core Data: A-17 .854 1.O7 A-16 A-10 Source of Saturation Data: Foot by foot log analysis, 15 wells Gas saturation values were predicted from the model study. As a point of clarification of geologic testimony presented, the accumulation limits shown on all structure maps in Exhibit :IV are controlled by well' data. In particular, the top C-7 sand accumulation limit is based on an oil - water · contact in the Trading Bay #3 well on the south plunge of the structure. ! Union Oil Company of California respectfully requests this letter be entered in the record of said hearing. Very truly yours, UNION OIL COMPANY OF CALIFORNIA Robert T. Anderson Attorney-i n-Fact OFF I CIAL TRANSCRIPT OF HEARING HELD 6/29/70 Conservation Order 93 OIL & GAS CONSERVATION COMMITTEE Division of Oil & Gas Mr. Burrell: Good morning, ladies and gentlemen. This is the hearing of the Alaska Oil and Gas Conservation Committee in response to the application of Union Oil Company of California for redefinition of the Trading Bay Middle Kenai Oil Pools and for pressure maintenance projects in the Trading Bay Fields. Notice of this hearing was published in the Anchorage Daily News on June 17, 1970. If any of you haven't signed, there is a sheet up there at the end of that table and would everybody please sign it now or at the break, or sometime. I'm Homer Burrell; to my left is Harry Kugler; to his left is Karl VonderAhe; and on the end of the table is Lonnie Smith. To my right is Tom Marshall who is Executive Secretary to the Commission; and to his right is O. K. Gilbreth who is a member of the Oil and Gas Conservation Committee. Unless there is something else, I think we are ready to start. Oh, excuse me, here is Roberta Keith, back here running the tape recorder. Oh, that reminds me. We have had some trouble with the tapes in the previous hearings. No doubt you have seen some of the transcripts with that word where they use '~indiscernible" or something like that stuck in there, so if anybody doesn't speak loud enough to get on the tape, they will have deemed to have waived their right to appear in the record. Now does Union Oil want to go ahead with their testimony? Wade McAlister: Thank you, Mr. Chairman, and good morning. I'm Wade McAlister, Landman of the Anchorage District of Union Oil Company of California. Development of the Trading Bay Field had provided information making it possible to divide the previously defined btiddle Kenai Oil Pools into four groups of pools, the Trading Bay 1,iiddle Kenai "B", '~C"~ '~D" and ~'E" Oil Pools, and to establish pressure maintenance projects in the previously defined Hemlock Pool and the redefined Middle Kenai '~C" and "D" Oil Pools. In the interest of economy of time, I request the application for redefinition of b~ddle Kenai Pools and for pressure maintenance projects, dated June 12, 1970, along with Exhibits "A" through "G'~, be entered into the record of this hearing without reading. Homer Burrell: The application and its exhibits, mark them as Exhibit No "1'~ with Exhibits ~'A" through ~I"? Wade McAlister: We have additional exhibits, Mr. Chairman, marked Exhibit ~'1", perhaps that might be confusing. Homer Burrell: Alright. Wade McAlister: Another designation. We use Roman numerals "I'~ through ~'X". Homer Burrell: On your others. Wade McAlister: Yes, sir. Homer Burrell: You did use Roman numerals "I" through "X~'. Wade McAlister: Yes, sir. Homer Burrell: Well, I guess we'll get out of sequence and make it "XI"? (?) We could (indiscernible) Homer Burrell: Well, let's just mark it Committee Exhibit "Ir'. How's that? Wade McAlister: Yes, sir. Very fine. Homer Burrell: through '~X". And then the others, yours would be Applicant's Exhibits "I" Wade McAlister: Very good. Homer Burrell: Okay? Wade McAlister: Union now presents for your consideration the following proposed Conservation Order: -2- RULE 1. RULE 2. Rb~LE 3. PROPOSED TRADING BAY FIELD RULES Area Where Field Rules are Applicable The area described as follows will be affected by these rules: T. 9 N., R. 13 W., S. M. Section 3: NW 1/4, W 1/2 SW 1/4 Section 4: E 1/2, SW 1/4 S 1/2 NW 1/4 NE 1/4 NW 1/4 Section 5: E 1/2 SE 1/4, SW 1/4 SE 1/4 Section 8: NE 1/4 Section 9: N 1/2 T. 10 N., R. 13 W., S. M. Section 33: S 1/2 SE 1/4, NE 1/4 SE 1/4 Section 34: SW 1/4 Definition of Pools (a) The Trading Bay Middle Kenai "B" Oil Pools are defined as the intervals which correlate with the interval 1,270' to 5,010', drilled depth, in the Union Oil Company of California Trading Bay State A-17 well. (b) The Trading Bay ~iiddle Kenai "C" Oil Pools are defined as the intervals which co.rrelate with the interval 4,585' to 6,225', drilled depth, in the Union Oil Company of California Trading Bay State A-14 well. (c) The Trading Bay }iiddle Kenai "D" Oil Pools are defined as the intervals which correlate with the interval 6,225' to 7,025'., drilled depth, in the Union Oil Company of California Trading , Bay State A-14 well. (d) The Trading Bay Middle Kenai "E" Oil Pools are defined as the intervals which correlate with the interval 7,025' to 7,425', drilled depth, in the Union Oil Company of California Trading Bay State A-14 well. (e) The Trading Bay Hemlock Oil Pool is defined as the intervals which correlate with the interval 5,380' to 5,720' in the Union Oil Company of California Trading Bay #i-A well. ~Commin.g ling Commingling in the well bore of production from the P~ddle Kenai "D" and Middle Kenai "E" Oil Pools is allowed. --3-- RULE 4. RULE 5. RULE 6. _Sp. acing Acreage (a) Not more than four (4) completed oil wells shall be allowed in each of the defined pools on any governmental quarter section. (b) Not more than one (1) gas well shall be allowed in each of the defined pools on any governmental quarter section. Spacing Footage (a) No oil well in any of the defined pools shall be completed closer than 660 feet, true measured distance, to any other oil well in the same pools. (b) No gas well shall be completed closer than 1,000 feet, true measured distance, to any other gas well in the same defined pools. Casing and Cementi.n.g Requirements (a) Surface casing shall be landed at not less than 1,000 feet and cement shall be circulated to the sea floor. Casing and control equipment shall be hydrostatically tested to not less than 1,000 pounds per square inch pressure before drilling the shoe. (b) Production casing shall be landed through the completion zone and cement shall cover and extend to at least 500 feet above each potentially productive sand interval. The use of multi-stage cementing procedures shall be permitted. Alternatively, a casing string shall be adequately cemented at an intermediate point and a liner~ landed through the completion zone. If a liner is run, the annular space behind the liner shall be filled with cement to at least 100 feet above the casing shoe or the top of the liner shall be squeezed with sufficient cement to provide at least 100 feet of cement between the liner and casing annulus. Cement must cover all potentially productive intervals behind the liner. Casing and well head equipment shall be hydrostatically tested to not less than 2,000 pounds per square inch pressure. -4- RULE 7. RULE 8. RULE 9. RbqSE 10. RULE 11. Bottom Hole Pressure Survey.s A key well bottom hole pressure survey shall be conducted in each of the defined pools upon Committee request; provided, however, such surveys shall not be required more often than twice in any calendar year. The time and length of survey, number and locations of wells, datum and other details will be determined by the Committee upon consultation with the Operators. Pressure Maintenance. Pro3ects The injection of water for the purpose of pressure maintenance, secondary recovery or of conducting injectivity tests is permitted in the Trading Bay Middle Kenai "C" and "D" Oil Pools and the Trading Bay Hemlock Oil Pool. A progress report detailing project operations and results shall be submitted to the Committee upon request which shall not be more than twice in any calendar year. Administrative Approval Upon request of the applicant and a showing that any affected parties have been notified of such request the Committee may authorize the drilling of any well at any location, the termination or suspension of the pressure maintenance projects, the conversion of any well, or any other operation reasonably designed to further the purpose of the projects. Other Conservation Orders Conservation Order #57 as amended by Conservation Order #69 is revoked. Ail other conservation orders affecting the Trading Bay Field to include Conservation Order #69 shall remain in full force and effect, except as modified hereby. Exceptions Allowed All wells previously completed in accordance with then existing conservation orders, regulations or statutes that may be in conflict with these rules are hereby allowed permanent exceptions to such portions of these rules with which any such well may be in conflict. -5- A comparison of the definition of the Middle Kenai "B" Oil Pools in Rule 2(a) with the definition proposed in the application of June 12, 1970 will reveal the top of these Pools has been changed. It is requested you disregard the definition stated in the application. Geologist James E. Scott, Jr. and Reservoir Engineer V. A. Isaacs, Jr. will present geologic and engineering testimony to support the proposed definitions of the ~iiddle Kenai "B", "C", "D" and "E" Oil Pools and the pressure maintenance projects for the "C", "D" and Hemlock Pools. Testimony will also be given to justify commingling production from the "D" and "E" Pools and to show that the casing and cementing requirements will adequately protect the well bore and prevent communication between pools. I will read the qualifications of Mr. Scott and Mr. Isaacs into the record since neither have been previously established as expert witnesses by the Conservation Comm~ittee. Mr. Scott attended the University of Houston and received a Bachelor of Science degree in geology in August, 1964. He has since taken graduate courses in geology at the University of California at Santa Barbara. Mr. Scott has attended company sponsored schools in geology, geo- physics and reservoir engineering, as well as industry sponsored seminars in well log interpretation and core analysis. He is a member of the American Association of Petroleum Geologists, the Society of Petroleum Engineers of the A. I. M. E., the Alaska Geological Society and the Geophysical Society of Alaska. Application is pending for regis- tration as a professional geologist in the State of California. He has six years of geological experience in the oil industry, all with Union Oil Company of California. From August, 1964 to May, 1967, he worked in exploration and development geology in California. Since transfer to Alaska in May, 1967, he has been concerned with exploration of the Cook Inlet basin and development of several oil and gas fields in the oil province. Two years of this period were directly involved with primary development of the Trading Bay field. Mr. Isaacs graduated from Colorado School of Mines in 1964 with the degree of Petroleum Engineer. -6- Wade McAlister: Mr. Isaacs, were the Exhibits identified by Roman numerals V through X, to which you will refer during the course of your testimony, prepared either by you or under your supervision? Bud Isaacs: Yes. Wade McAlister: Mr. Chairman, I request the Exhibits identified by Roman Numerats.I through X be entered into the record of this hearing. Homer Burrell: presented. They will be entered with those presentations as they are Wade McAlister: To expedite the hearing, I also request questioning of the witnesses be delayed until the conclusion of the presentation. Mr. Scott will now present the geological testimony. Assisting Mr. Scott will be Mr. Bruce Clary in the presentation of exhibits. GEOLOGIC TESTIMONY Mr. Scott: The following geologic testimony is presented to support t. he definition of the Trading Bay Middle Kenai "B", "C", "D", and '~E" Oil Pools and to support the Middle Kenai "C" and "D" and Hemlock pressure maintenance projects Exhibit I, a structure map contoured on a representative sand within the Middle Kenai "D" Oil Pools in the Trading Bay field area, shows the area of field rule application. Scale of the exhibit is one inch equals 500 feet. Contour interval is 100 feet. This exhibit shows the 19 wells drilled from the Union operated TradiDg Bay field Monopod platform, the one well currently drilling, and the 3 non-platform wells in the field area. Ail Monopod wells were directionally drilled. The Trading Bay Field structure, as defined by drilling to date, is a faulted, asymmetrical anticline. Ail wells drilled from the Monopod plat- form have encountered faults. Faulting separates the field into six productive blocks. Five of the blocks (IA, IB, IIB, IIIA, IVA) contribute a minor amount of production; the remaining IIA fault block contributes approximately 85% of total field production. The IVA block is a subthrust block beneath the Trading Bay fault complex. The anticlinal axis trends N 53°E in the north part of the field to N 25°E in the south part of the field at Middle Kenai "D" depth. A westerly shift --8-- in the anticlinal axis occurs with depth. The Trading Bay anticline is bounded to the east by the Trading Bay fault complex and to the west by the West Trading Bay fault. Flank dips in the northerly part of the field are 20° to 30° on the west flank and 30° on the east flank. In the southern part of the field, flank dips are 12° to 40~ on the east and 10° to 14~ on the west flank. EXHIBIT II Exhibit II is a structural cross section A-A' through the Trading Bay field. Shown on this exhibit is the previously mentioned IIA fault block. Section A-A' also shows the relationship of the gently dipping southerly IIA block on the left, to the steep flanked central IliA block, and continues along the axis of the north fault block lB, to the right and into the lC block. This exhibit shows the fault related structural complexities which occur in the Trading Bay field. EXHIBIT III Exhibit III is a composite electric log of the Union, Trading Bay State A-14, A-17 and Trading Bay 1-A wells. Vertical scale is one inch equals 50 feet. This exhibit illustrates the productive and potentially productive oil sands and conglomerates of the Middle Ground Shoal member of the ~iiddle Kenai Tyonek formation. Exhibit III also shows the previously defined Hemlock Oil Pool. There are 36 hydrocarbon bearing sands and conglomerates in the field within a vertical interval of approximately 5000 feet. Production from the Ptiddle Kenai occurs from 2489 feet subsea in the IliA block, the most shallow completion, to 8354 feet subsea in the IVA block, the deepest completion. Production from the Hemlock occurs from 5506 feet subsea in the IA block to 6225 feet subsea in the IIA block, to 8478 ~ -- feet subsea in the IVA block. As defined in the proposed field rules, stratigraphic limits of the Trading Bay Middle Kenai "B" Oil Pools correlate with the interval 1270 feet to 5010 feet, drilled depth, in the directed well Trading Bay State A-17. The stratigraphic limits of the Trading Bay Middle Kenai "C", "D", and "E" Oil Pools in tile directionally drilled well Trading Bay State A-14, shown on Exhibit III, occur as follows: --9-- "C" Oil Pools "D" Oil Pools "E" Oil Pools 4585 feet - 6225 feet 6225 feet - 7025 feet 7025 feet - 7425 feet Also shown on this exhibit is the Hemlock Oil Pool, previously defined in Conservation Order #57 as "that interval which correlates with the inter- val 5380 feet to 5720 feet in the Union Oil Company of California 1-A Trading Bay well". The Middle Kenai Oil Pools are defined based on groupings of sands and conglomerates according to log characteristics, rock and fluid properties, similarity of aerial extent of hydrocarbon accumulations, and the proper mechanical separation of completions to optimize primary oil production and pressure maintenance for secondary oil recovery. For example, the "B" Pools oil gravity differs markedly from the underlying "C" Pools; the "C" Pools are composed of generally thin sands, in contrast to the thick, blocky sands of the "D" Pools; the "D" area of oil accumu- lation is considerably more extensive than the "E" Pools below. Exhibit IV shows five structure maps contoured on sand tops representative of the bLiddle Kenai "B", "C", "D", and "E" Oil Pools and the Hemlock Oil Pool in the Trading Bay field. The scale of this exhibit is one inch equals 500 feet. Contour interval is 100 feet. This exhibit shows the structural complexities in the field. Note the change with depth in the size of fault blocks such as the IliA block. The first map on the left is contoured on top of the 44-7 sand within the lfiddle Kenai "B" Oil Pools. The downdip limit of accumulation for these pools occurs at approximately 3863 feet subsea in fault block IIA. There are currently two completions (A-1 and A-9) in these pools, both located in the central IIIA fault block. ~]~e ~iiddle Kenai "B" Oil Pools shown on the composite log, Exhibit III, are composed of massive, loose to firm, silty, pebbly sands and sandly conglomerates with interbedded siltstones and coals. The sands and conglomer- ates ~vary in thickness from 50 feet to 125 feet. The "B" stratigraphic interval is characteristically a series of thick sands, thick coals and thick siltstones. Oil gravity of the "B" Oil Pools is characteristically different from the oil gravity of the underlying "C" Oil Pools. "B" Pools oil gravity ranges from 20.0° -10- Since graduation he has done graduate work at the University of Southern California and at the University of Alaska where he is currently working on a Master of Science degree in Engineering ~ianagement. He has attended industry and company sponsored schoDls on gas lift design and reservoir modeling. Mr. Isaacs is an active member in the Society of Petroleum Engineers of A. I. M. E. After graduation in 1964 Mr. Isaacs worked for the California Company as a drilling engineer in the Gulf of Mexico for one year. Following two years in the military he went to work for Union Oil Company of California as a reservoir engineer performing primary and secondary development work in four fields in Union's Southern District in Santa Fe Springs, California. Mr. Isaacs came to Alaska as the reservoir engineer of Trading Bay Field. In this capacity he has been involved with the primary and secondary development of this field. I request these men be established as expert witnesses by tile Conservation Com~ttee and at this time be sworn for this hearing. Homer Burrell: Unless there is some objection from any member of the committee, their qualifications as expert witnesses are accepted and Mr. Marshall, Executive Secretary, will swear both witnesses together. Thomas Marshall: Will you please stand and raise your right hand. In the matter now at hearing, do you swear to tell the truth, the whole truth, and nothing but the truth, so help you, God? Jim Scott & Bud Isaacs: I do. Wade McAlister: Mr. Scott, were the Exhibits identified by Roman numerals I through IV, to which you will refer during the course of your testimony, prepared either by you or under your supervision? Jim Scott: Yes. -7- to 24.1°API. Gas caps have been tested in two sands in the IIA fault block. Analyses of six conventional full diameter cores from wells Trading Bay i-A, Trading Bay State A-4 and A-16 showed a porosity range of 19.2% to 32.1% and a permeability range of 8 md to 1650 md. Log analyses of 15 wells indicates an average porosity of 22% and an average permeability of 250 md. The unconsolidated nature of "B" sands is evidenced by sand fill on drill stem tests in the Trading Bay State A-7 well. The second map shown on Exhibit IV is a structure map contoured on top of the C-7 sand in the Middle Kenai "C" Oil Pools. The "C" Pools downdip accumulation limit occurs at approximately 5090 feet subsea in fault block IIA. There are presently 5 completions, the Trading Bay State A-l, A-5, A-7, A-10, and A-16, in the "C", three of Which are currently producing. The Middle Kenai "C'~ Oil Pools shown on the composite log, Exhibit III, are primarily composed of loose to friable, pebbly, silty sands and sandy conglomerates with interbedded siltstones and coals. The '~C" Pools are stratigraphic- ally separated from the overlying "B" Pools by a 20 foot siltstone and a 10 foot coal bed. The "C" interval of pools is generally a series of thin sands, thin coals, and thin siltstones. Reservoir characteristics define the lower limit of the '~C'~ Oil Pools. Analyses of three full diameter conventional cores from wells Trading Bay State A-7 and A-17 shows a porosity range of 17.4% to 28.7% and a permeability range of 10 md to ~2520 md. Average porosity from log analyses of 15 wells is 19% and average permeability is 100 md. "C" Pools oil gravity ranges from 26.0° to 27.0~ AP1. No gas caps have been encountered in the IIA fault block. The third map shown on Exhibit IV is a structure map contoured on top of the 57-2 sand in the lower part of the Middle Kenai "D" Oil Pools. The "D" Pools downdip accumulation limit occurs at or below 5822 feet subsea in the IIA block to 7890 feet subsea in the IVA block. There are currently 10 completions in the "D" Pools, the Trading Bay State A-5 Redrill, A-7, A-8, A-10, A-il, A-13, A-14, A-17, A-18, and 'A-19 wells. Six of these completions are currently producing and water is being injected into A-5 Redrill. The ';D" Oil Pools, as shown on the composite log, Exhibit III, are composed of numerous loose to firm, massive sands and sandy conglomerates, thin -11- siltstones and coals. These pools are characteristically conglomeratic. The sands have pebble beds with li~t~tle or no continuity. Localized sand stringers occur within the conglomerates. The "D" Pools sands are stratigraphically separated from the ~'C" Pools by a siltstone bed up to 60 feet thick. Analyses of two con- ventional full diameter cores from the Trading Bay State A-16 well have shown a porosity range from 16.6% to 28.7% and a permeability range from 15 md to 1260 md. Log analyses from 15 wells indicates an average porosity of 21% and an average perme- ability of 180 md. '~D" Pools oil gravity ranges from 29.8° to 31.4°API. The fourth map shown on Exhibit IV is a structure map contoured on the 58-7 sand near the top of the ltiddle Kenai "E" Oil Pools. The downdip limit of accumulation in the "E" Pools occurs at approximately 5927 feet subsea in fault block IIA to 8304 feet subsea in fault block IVA. There are currently four completions in the "E" Pools, Trading Bay State A-2, A-8, A-13, and A-18 wells. The "E" Oil Pools shown on the composite log, Exhibit III, are composed of loose to firm sands and conglomerates with interbedded siltstones and coals. Interbedding of sands and conglomerates is common in these pools. The 'IE" Pools are separated from the overlying ~'D" Pools by a 20 foot siltstone bed and from the Hemlock Pool below by a 15 foot to 50 foot siltstone bed. Analysis of one full diameter conventional core in the Trading Bay State A-2 well yielded porosity values ranging from 10.6% to 21.4% and permeability values ranging from 2 md to 77 md. These values are based on limited core analysis data. Average porosity indicated from log analyses of 15 wells is 20% and average permeability is 130 md. "E" Pools oil gravity ranges from 30° to 49°API, establishing definite fluid differences. Additional evidence for separation of the "E" Pools is apparent from the existence of primary gas caps in these reservoirs. The last map shovzn on Exhibit IV is a structure map contoured on top of the Hemlock Oil Pool. The downdip limit of accumulation occurs at 6225 feet subsea in the IIA block to 8478 feet subsea in the IVA block. There are currently seven producing completions in the Hemlock Pool, the Trading Bay State A-2, A-6, A-13, A-14, A-15, A-16, and A-18 wells. Water is currently being injected into Trading Bay State A-17. -12- The Hemlock, as shown on Exhibit III, is a massive, loose to firm, sandy, pebble t6 cobble conglomerate with interbedded thin siltstones and numerous sandstone stringers. The common occurrence of coal beds, as in the Middle Kenai, is noticeably absent in the Hemlock. The Hemlock is separated from the "E" Pools above by a 15 foot to 50 foot siltstone bed and overlies a thick, tuffaceous siltstone of the West Foreland formation. Analyses of 6 full diameter conventional cores in the Trading Bay State A-2, A-7, A-8, A-10, A-13, and A-14 wells yielded porosity values ranging from 1.8% to 24.7% and permeability values ranging from 0.1 md to 471 md. Log analyses of 15 wells indicated an average porosity of 15% and an average permeability of 30 md. Hemlock oil gravity ranges from 27.3° to 31.8~ AP1. From this geological testimony it is apparent that the Trading Bay Middle Kenai "B", "C", 'rD", and "E" Oil Pools and the Hemlock Oil Pool are in fact separate and distinct. Stratigraphic separation, variable lithologic charac- teristics~r.adcumuiation limit differences, and reservoir characteristic variations support the applicant's request to establish separate pools. Definition of pools, as proposed, will provide the flexibility necessary to optimize development of all pools and will allow effective pressure main- tenance of the PRddle Kenai "C", "D", and Hemlock Pools. The extent of accumulation, the confinement of reservoirs and the generally continuous nature of the sands within the Middle Kenai "C" and "D" Pools and the Hemlock Pool show that the IIA fault block is geologically suit- able for successful pressure maintenance projects. Wade McAlister: This concludes the geological testimony and Mr. Isaacs will now present the engineering testimony and will again be assisted by Mr. Clary. We will now have about a one minute recess. ENGINEERING TESTIMONY This engineering testimony will support the pool definitions of the l~iiddle Kenai "B", "C", "D", and "E" Oil Pools and the pressure maintenance projects in the bhiddle Kenai "C", "D", and Hemlock Oil Pools currently proposed in Fault Block IIA, Trading Bay field. These projects may be expanded to other fault blocks in the future. -13- The reservoirs in Fault Block IIA produce under a solution gas-drive mechanism. To date, no aquifer response has been observed and none is anticipated. In order to insure the recovery of a reasonable percentage of the oil in place, reservoir pressure must be maintained artificially. This testimony will describe the fluid properties of the "C" "D", "E" and t{emlock Pools, as well as the rock properties of the "B" "C" "D" "E" and Hemlock Pools and show that pressure maintenance by water injection is expected to recover additional oil from the "C", "D", and Hemlock Pools. Exhibit V is a comparison of the oil compositions from the "C" "D~' "E" and Hemlock reservoirs These samples were obtained at the surface downstream of the separator from the indicated wells. All analyses were made from recombined surface samples by commercial laboratories. The differences in mol per- cent between the pools of the methanes and the heptanes plus in each sample are apparent. The mol percent of the methanes ranges from 24.86 to 84.76 percent, while the mol percent of the heptanes plus ranges from 4.59 to 63.53 percent. Mol percent values for the "E" Pools are noticeably different due to the well stream fluid being mostly gas. Variation in components occurs in all pools. Exhibit VI shows a comparison between pressure volume temperature laboratOry analyses of these samples. In a.l. 1 cases the analyses indicate the fluids are slightly undersaturated. The Hemlock data in Exhibit VI differs from that given in the previous testimony for the Alaska Oil & Gas Conservation Committee Hearing, February 7, 1968, Beneficial Use of Gas, Trading Bay Field. Latest field data sub- stantiates this change in recombination from a solution gas-oil ratio of 249 standard cubic feet per barrel used for that hearing to 400 standard cubic feet per barrel, which in turn increased the saturation pressure from 1622 psig to 2600 psig. The production of gas in TBS A-2 (S) is evidence of a gas cap in the "E" Pools. This information is not consistent with the laboratory fluid analysis which shows the '~E" Pools to be slightly undersaturated. Therefore, an effort is currently under way to obtain another '~E" Pool fluid analysis. Exhibit VI also shows differences in oil viscosities, oil forma- tion volume factors, API gravities, and compressibility factors in each of the pools. Crude oil viscosities are particularly important as they directly affect the -14- ability of water to push oil through the reservoir. Large variations in crude viscosity of various pools in the Middle Kenai are detrimental to vertical confor- mance, and hence, oil recovery. The proposed pool definitions minimize these variations. The data presented in Exhibits V and VI establish the difference in pressure-volume-temperature properties for the "C", "D", "E", and Hemlock reservoirs. Various combinations of logs were analyzed to determine the most accurate porosity values for the "B", "C", "D", '~E", and Hemlock Pools through correlation with full diameter core analysis. Porosity, permeability and water saturation values derived from the density log approximates these core values. To obtain average porosity, foot by foot analysis of the pay interval was determined from the logs of 15 wells. This technique shows in Exhibit VII the average porosity values range from 15% in the Hemlock Pool to 22% in the "B" Pools. Exhibit VII also shows the average permeability for each of the defined oil pools based upon the density log porosity values over the net pay interval of each pool. Average log permeability values range from 30 md in the Hemlock Pool to 250 md in the "B" Pools. The average water saturation values shown in Exhibit VII were computed from the density log porosity of the 15 wells in Trading Bay field. They range from 30% in the "D" Pools to 35% in the "C'~ Pools. Exhibit VIII and Exhibit IX are examples of the normalized relative gas and water permeability curves. The special analyses of cores from wells TBS A-2, A-8, A-13, A-16, and A-17 were used to arrive at this base set of curves, Special core analyses indicated that all cores were sensitive to fresh water. These same cores were tested for sensitivity with salt water of comparable salinity to CoOk Inlet water and the analysis revealed that filtered and treated Cook Inlet water could be used for injection with a minimum effect on formation P~Oductivity. -15- To estimate performance of the proposed peripheral injection pattern, a mathematical reservoir model was used· This was the McCord Multi-layer 600 point, two dimensional, three phase, unsteady-state reservoir simulator with the layers being the "C" "D" "E" and Hemlock Pools , ' , · This study was composed of two parts: the history match and the performance prediction. To obtain the history match, fluid and rock properties were input in conjunction with individual well oil withdrawals. Porosity foot maps, permeability foot maps, and normalized gas and water'relative permeability curves were digitized for input into the model. A pressure and GOR match was then obtained on an individual well basis. This match was based upon well data obtained from key well pressure build-up analyses and static pressure recordings. Various injection techniques were investigated for the predic- tion mode of this model study. The injection portion of this study was limited to the "D" and Hemlock Pools due to the lack of sufficient primary performance from the "C" and "E'~ Pools. Current plans, however, do include injection into the "C" Pools but it has not been modeled to date· Pressure maintenance in the "E" Pools has not been resolved at this point. Recompletion of TBS A-8 has shown the existence of oil accumulation below a gas cap where previous interpretation indicated only a gas pool. The "E'~ Pools have much less aerial extent than the adjacent pools and, due to the limited oil in place, additional drilling into this reservoir is not practical· Also, it is mechanically impractical to triple complete these directional ~ wells. Consequently, to insure development of the "E" Pools it becomes necessary to commingle its production with the production from the "D~' Pools. These pools are separated mechanically by cement. The production string will have the versatility of producing either of these pools in order to allocate production based upon 'individual tests. In estimating future development, plans were made based upon the proposed pool definitions. Parameters involved in these predictions were productivity and injectivity index, tubing size, artificial lift calculations, and calculated reservoir pressures· -16- The casing and cementing record of the TBS A-5RD in Exhibit X is shown as an example of the proposed program for injectors. This plan will essen- tially be followed in other injectors subject to variations required by depth differences in particular wells. To maintain segregation between pools, selective cement squeezing is proposed where deemed necessary. To insure that no communication exists up the hole, cement will be staged to extend to at least 500 feet above each potentially productive sand. If a liner is run as in TRS A-5 RD, cement will be returned or squeezed above the liner lap to include at least 100 feet of cement between the liner and casing annulus. The cement on the surface string will be returned to surface. The produc- tion casing above the injection packer will be pressure tested with treated water to 2000 psig before final installation of the injection tubing. S b].R~ARY Engineering studies have used the latest techniques to determine the most effective methods to maximize oil recovery from the Trading Bay field. These studies have established the following: 1) Mechanical separation of the "B", '~C", 'iD", "E", and Hemlock Pools is necessary. These are separate and distinct reservoirs and without this separation proper reservoir control with primary and pressure maintenance would not be possible. 2) The reservoirs in Fault Block IIA produce under a solution gas- drive mechanism and without pressure maintenance, oil production rates will decline rapidly and GOR's will increase. 3) Ultimate recovery by pressure depletion is expected to result in 14% recovery of initial stock tank oil in place within the "CT', "D", and Hemlock Oil Pools. 4) By pressure maintenance with water injection, production from the "C", "D", and Hemlock Oil Pools is expected to increase. This will maximize ultimate recovery at approximately 30% in the "D'; Pools and 20% in the Hemlock Pool. The "C" and "E" Pools are undergoing additional primary development to determine their potential. -17- 5) Total injection for Fault Block IIA, Trading Bay field should equal 30,000 BWPD. Of this, 7000 BWPD has been allocated to the '~C" Pools, 20,000 BWPD for the "D" Pools, and 3000 BWPD for the Hemlock Pool. Based on injectivity tests in TBS A-5L and A-17L, injection rates of from 5000-6000 BWPD in the "D" Pools and 3000 BWPD in the Hemlock Pool can be expected. It is anticipated that four injectors are necessary in the "D" Pools and three injectors in the Hemlock Pool. 6) Peripheral injection into the "D" and Hemlock Pools, and most likely the "C" Pools, will yield the ultimate recovery with maximum producing rates; however, additional drilling is now in progress which could cause some alteration in this plan. In conclusion, to recover the maximum oil and prevent waste of a natural resource, the following proposals should be approved: 1)Separate the "B", "C", "D", "E", and Hemlock Oil Pools to insure proper continued development of these reservoirs. 2) Commence pressure maintenance in the "C", "D", and Hemlock reserVOirs Of the Fault Block IIA as soon as possible. 3)Allow commingling of production through common tubing from the "D" and "E" Pools. 4)Monitor closely individual pool injection, production rates and performance of the projects. 5) Establish field rules which will allow administrative approval by Conservation Committee at Operator's request for operational changes required for the pressure maintenance projects. Wade McAlister: Mr. Chairman, this concludes our testimony at this time. Perhaps a short recess would be in order if you so desire to examine exhibits. Homer Burrell: Thank you, Mr. McAlister, Mr. Scott, Mr Isaacs, Mr. Clary. Prior to taking a recess, let me ask if there is anybody else here who wishes to testify. That doesn't mean ask questions. There will be plenty of time for that later. Does anybody wish to put down any testimony? Well, let's take a 15 minute recess, then. -18- Homer Burrell: This hearing is reconvened and if the witnesses would make themselves available for questioning from the committee and by questions from the committee if there is any member of the audience (indiscernible) or if anybody wishes to testify, we would be happy to receive their questions, statements or testimony. Mr. Gilbreth, do you have a question? O. K. Gilbreth: Yes, sir, I have. I would like to address my question just to tile t~o of the witnesses, of whichever one is appropriate would you please answer. In the geological line, I would like to find out, you've recommended a pool top I believe as high as 1270', on the Trading Bay ~Liddle Kenai "B" Pool. You recommended that the top be 1270' and I believe the testimony was to the effect that the highest producing interval yet opened is 2489' subsea. Could you tell me why you feel the interval of the "B" Pool should extend that high? Jim Scott: Yes, sir. The first occurrence of the potentially productive or the first occurrence of oil sands or gas sands as we define it, as hydrocarbon- bearing or related to hydrocarbon-bearing sands, occurs at 1270 on the type log A-17. We have seen no hydrocarbon-bearing sands above this point so we felt in keeping with the pool definition that we' should probably go from the upper top hydrocarbon- bearing sand dov~ to a reasonable break which we feel to be "C". O. K. Gilbreth: Is there a likelihood that the hydrocarbon-bearing sands that you speak of might be gas productive above 2489? Jim Scott: We have no indication. O. K. Gilbreth: I believe your testimony indicated that the interval below the Hemlock was probably nonproductive. Is this true over the entire structure? Jim Scott: ductive, sir. O. K. Gilbreth: pointed out again. Jim Scott: O. K. Gilbreth: Yes, sir. In Trading Bay Field, the West Forelands is nonpro- I would like to request that the "B" Pool producing well be A-1 and A-9 Now, both of those are completed in the "B" Pool? -19- Jim Scott: Yes, sir. O. K. Gilbreth: Within the vertical limits of the pool that you have shown then on your type log and in the testimony, it appears that there are several sand stringers within the pool definition. Do you plan to attempt to control injection fluids in any way within these individual stringers within the pool or do you simply plan to inject within the upper and lower limits of the pools? Bud Isaacs: To date we have test injection in the two wells, one in the "D" pools and one in the Hemlock pools, and we have not gotten into an overall project. We will, naturally, have to see what the water does in the various sands within these pools, at which time if it is deemed necessary to make some correction that we will probably look into this. O. K. Gilbreth: In other words, at the present time you plan just to inject into the "D" interval and I assume take routine surveys to find if the water is channeling, or something of that nature. Bud Isaacs: That is correct. O. K. Gilbreth: I believe you had indicated that you had chosen Inlet water as the injection medium. Could you tell us why you found the Inlet water to be better than, for example, gas or miscible project or something of this nature? Bud Isaacs: Yes. As mentioned in the testimony, fresh water is sensitive, so we ruled this out right at first, the core is sensitive to fresh water. Naturally, the second thing to consider was the gas because there is gas that is not being utilized in this fashion. We found that, number one, we have adverse gas/oil relative permeability which would cause less oil to be recovered by water injection, by gas injection rather than by water injection; hence, we have a waste of a natural resource if we went with gas. The other thing, if you'll notice on Trading Bay Field, if you'll look at the geology~ you'll find that the dips are very shallow. Everything is under 15°, and due to the fact that the dip angles are less than 15° we would get no benefit by gravity drainage throughout any of our sands within the pools. Consequently, we would receive no benefit by gravity drainage which is one of the major benefits in a gas repressuring project. This would also cause a waste of a natural resource. And the other thing is, when you consider -20- all the pools and what we are looking at, there is not sufficient gas, iramediate gas, available in the Trading Bay Field, much less the whole west side for a complete gas project. To date we have done no studies on miscible flood, as such. O. K. Gilbreth: In other words, even the volume of gas that is available at Westforeland from the MacArthur River Field and the Trading Bay would be insufficient for some sort of a high pressure gas injection project. Bud Isaacs: Yes. It would be insufficient. We currently -- today we might be able to match voidages. We could match voidages with the gas that is being not utilized, so to speak, five years from now v~hen we still need these high volumes that would not be available and we have nothing that would give us the gas at that point. O. K. Gilbreth: What is the current reservoir pressure and are you at or near or below saturation pressure? Bud Isaacs: The current reservoir pressure for which pool? O. K. Gilbreth: The pools you plan to inject in the "D" and the "C". Bud Isaacs: In all cases, we, the answer to the second part of your question first. We are below the saturation pressure in all our pools. However, we are within, say, 200 pounds in all cases of the saturation pressure. I'll refer back to the exhibit, the PVT exhibit for the, just for a refresher of what the saturation, exhibit VI, reservoir fluid characteristics, Trading Bay Field. The initial pressure in the "C" pools was 2,048 and in the "D" pools was 2,578, "E'1 pools 2,661 and Hemlock 2,802, while the bubble point pressure was 1612 in the "C" pools, 2502 in the ~'D" pools, 2612 in the ~'E" pools, and 2600 in the Hemlock pool. We have just undergone, matter of fact, they're still in one well today, taking the most current pressures to my knowledge and these figures are off the top of my head and we will have them updated as soon as we get this current series of pressure tests in. Our "C" pool pressure is running just at about 1400, or from 1200 to 1400 pounds, depending naturally where you are in the reservoir. The "D" pool pressure is at 2000 pounds, the "~E" pools are about 2300 pounds and the Hemlock is at between 2300 and 2400 pounds. We're trying to say an average pressure. -21- O. K. Gilbreth: In your opinion, has the pressure dropped sufficiently in each of these pools to set up adequate free-gas saturation so that you would be at the point of maximum recovery so far as the RYF is concerned? Bud Isaacs: We have set up free-gas saturation in the central part of the field. However, out on the outer limits in ~Yhich we are drilling now we still feel that our saturation pressure, well, we're above the critical gas saturation level. O. K. Gilbreth: For a maximum recovery then, would it not be true that the pressure should be leveled off certainly no lower than where they are now? Bud Isaacs: We have, as recommended in the testimony, in the conclusion portion of the testimony, we should begin this pressure maintenance project as soon as we can. We feel that we are at a good level right now to obtain a maximum recovery and this is what the model points out. O. K. Gilbreth: What if the pressure dropped below the present level? Bud Isaacs: In what the-- O. K. Gilbreth: In terms of ultimate recovery; would the ultimate recovery be reduced if pressure dropped below the present level? Bud Isaacs: To my knowledge and again, we ran the reservoir simulator from the pressure levels that we are at right now. I have not done any studies by delaying this project any further. We anticipate that we will have the water flood equipment installed by October at the 30,000 barrels of water per day and this is where we have made our study. I have not carried it below this point as if we were to wait until next year or something of this nature. O. K. Gilbreth: Are your plans to just maintain pressure or to increase the pressure? I didn't understand. Bud Isaacs: In the reservoir model we actually increased pressure. We were in excess, we're putting in more water than we were withdrawing reservoir equivalent barrels. Consequently, we did in fact increase the pressure from the point that we are now. This, again, when you start getting into your longer predictions becomes somewhat interpretative. O. K. Gilbreth: Is it your company's plan to follow this type of a program? -22- Bud Isaacs: O. K. Gilbreth: indicated? Bud Isaacs: I'm not sure I understand your question. Do you plan to inject, to build up pressure as the reservoir model Yes, it is planned to follow what the model indicated, that's right. We plan to increase it. O. K. Gilbreth: Alright. Do you have any information on the mobility ratio here by use of water? Bud Isaacs: Yes. By that I say that we have the information if you refer to Exhibit, again Exhibit VI, Reservoir Fluid Characteristics, we have here indicated the viscosities at the bubble point and also we have the PVT analysis. We are looking at the viscosities at our current reservoir pressures. We also have the permeabilities, the relative permeability curves so in the model calculations throughout the water flood prediction mode mobilities are very naturally considered. This is a cellular model and mobility is not just considered as one factor, but between the individual cells. O. K. Gilbreth: Bud Isaacs: Can you give us any idea of what range this is for? I could give this to you at a later date if you so desire, but at the top of my hat I couldn't give you one right now. O. K. Gilbreth: Would you? Bud Isaacs: Yes, we shall. O. K. Gilbreth: Could we keep the hearing record open? tiomer Burrell: Yes, we can talk about that later or we can consider keeping a record of this hearing open for a period of time to submit additional data which may be requested. O. K. Gilbreth: In your opinion, Mr. Isaacs, would the additional recovery that you expect from the pressure maintenance project more than return the cost of the project? Bud Isaacs: Try it one more time and let me see if I can -- O. K. Gilbreth: In your opinion, will the additional oil recoveries to be obtained from the pressure maintenance project more than pay for the project itself? Bud Isaacs: Yes. -23- O. K. Gilbreth: I believe you testified that initially at least you are thinking of a peripheral pattern. This is just in the project area that we are talking about right now. Right? Bud Isaacs: We are talking about Fault Block II-A, as I mentioned in my test imony. O. K. Gilbreth: What about the other areas. Do you plan to continue studies toward pressure maintenance in those, the other fault blocks? Or is this something that you just concluded can't be maintained? Bud Isaacs: We have not ruled out all the fault 'blocks at this point. However, the majority of the other fault blocks are of such small aerial extent that it would not be feasible to flood these. They do not have sufficient secondary oil to make them a feasible project. O. K. Gilbreth: In the proposed rules I believe there is one provision that requests, or makes prior exceptions all legal, Rule 11. Could either of you tell me about how many wells ~ould fall into this category. They would be an exception to the proposal that had been made. Wade McAlister: One purpose we are including this rule is to not only cover wells that might have different completions, etc., but also casing cementing require- ments. Perhaps there would be a difference there. But there are presently two wells for which there are exceptions. Those are wells A-9 under Conservation Order 63 and A-15 under Conservation Order 65. We would of course like for these to continue, in effect, lawfully. O. K. Gilbreth: One more question, Mr. Isaacs. I didn't understand fully from the testimony whether you said that you in the Hemlock, you expected primary recovery in the order of 14% and I believe you said this would increase to 30% or you ~-~ould expect an additional 30% due to pressure maintenance in the Hemlock. Bud Isaacs: In the testimony I stated that we could expect primary recovery from the "C", "D", and Hemlock Pools of approximately 14% and we could increase ultimate recovery to 30% in the '~D" Pools and 20% in the Hemlock Pool. O. K. Gilbreth: Now the "E" Pool is the pool that is to be commingled, is it not? Bud Isaacs: That is correct. -24- O. K. Gilbreth: ~nat about your plugging plans, or your pressure maintenance plans in the "D" and the Hemlock? Will they also maintain pressure or will there be effective injection into the "E'~ Pool? Bud Isaacs: No. At this point we do not plan for the projects as stated in this hearing, the pressure maintenance projects do not adhere to the "E'~ Pool. O. K. Gilbreth: With the Order that you have proposed here, as I understand it, you v~ould, if you get ready to complete your injection wells and so forth in each of these projects you would submit some sort of a plan to the committee, is this the intent? Bud Isaacs: I'm not sure I know what type of plan you mean. We have stipulated in the rules there will be an annual project report. O. ~. Gilbreth: No, I'm speaking of when you start to convert, so that the committee would be aware of what type of pattern, where your wells would be located and things of this nature. In other words, I don't see anything that says there is going to be an injection well anywhere here. I heard there was to be a peripheral program. Bud Isaacs: In the letter of application there was, this was exhibit A of the application. O. K. Gilbreth: Yes? Bud Isaacs: In this letter we show a plat of the wells that are in existence on the Trading Bay Field, what their status is as indicated by the arrows, naturally, and we have also indicated the proposed injectors for the fault block II-A. iqow, these naturally are subject to interpretation of what our current well that we are drilling, A-22. O. K. Gilbreth: We must be talking a different language. It may be that your map shows your injection wells and everything, but I'm afraid the one that is fur- nished to me does not show that. ~ Bud Isaacs: Huh? Wade McAlister: From Exhibit A of the application. O. K. Gilbreth: Well, maybe so then -- Bud Isaacs: If this would be easier, I can't point them out on the exhibits. O. K. Gilbreth: There's nothing that says 'that these are to be injection wells on our exhibit. We have no knowledge -- -25- Bud Isaacs: left hand -- O. K. Gilbreth: Bud Isaacs: Uh, I don't know if you have the same plat as I do, in the I'm sorry, there it is. I was looking over in the index. I think it is standard procedure to submit to the Conservation Con~nittee what type of wells we are, in our Sundry Notice, what type of well we are drilling. O. K. Gilbreth: This was what I wanted to be sure of, that it wasn't the intent that the Order would give a blanket approval of. That's all I have, Mr. Burrell. Homer Burrell: Thank you, Mr. Gilbreth. Do you have some questions, Mr. Marshall? Thomas Marshall: Yes. ~Cnile we are on the subject, Mr. Isaacs, is this true then looking at Exhibit "A" that there are only one, two, three, four, five injector wells ? Bud Isaacs: If we look at Exhibit '~A'~, uh, A-ii, which is next to the platform, is a proposed injector. A-5 redrill, A-17, A-21, A-22 and A-24. N~w, we have to remember that these injectors will be injecting into more than one pool. They will probably be and this will depend on what we find from our south well that we are drilling right now, A-22. They will be injectors into either the "C" and the "D;', or the "D'~ and liemlock. These wells that are proposed injectors, A-21 and A-24, are not located exactly due to the fact that we do not and we will not have the southern- most limit of this field until we complete A-22 and will probably want to alter, we may or may not want to alter, these injectors as to where their precise position Thomas ~,~arshall: Do you plan a project into the "B" and "E" Pools? Bud Isaacs: At this point we do not have sufficient primary data on which to base a flood into the "D" and "B" Pools. As a matter of fact, we are still for- mulating our primary data, as I mentioned in the testimony, on the "C'~ Pools. Thomas Marshall: But you are planning one for the "D" pool? Bud Isaacs: For the "D" Pools and the Hemlock, yes. And we have a test injec- tion in the Hemlock in A-17 which is located here and indicated so on your exhibits, and in A-5 redrill position here in the "D" Pools. Thomas Marshall: Now while we're on the subject of the "D" pool there, do you plan an injection operation into that little sliver that you have indicated as "Oil Productive" which is to the right of your main lobe. -26- will be. Bud Isaacs: Thomas Marshall: Bud Isaacs: Thomas Marshall: Bud Isaacs: You're talking about the 2-B? No, go a little further north. 3-A? That one right there. No. That -- Our pressure maintenance projects, as I have so stated in the testimony, are applicable to the 2-A fault block. Well, precisely the ~'C", "D'~ and Hemlock of the 2-A fault block. That is this fault block here. l]~omas Marshall: That will finish my questions for you, Mr. Isaacs. Mr. Scott, I would like to ask you, could you review the nature of the geological information which supports the, let's say, the location and existence of this little sliver in the "E" sand pool which lies to the upper right of the main lobe of the oil produc- tion? From my scale map I don't see a single well control in it, but I am sure there, probably some exists. Jim Scott: Are you speaking of the 3-A block in the -- Thomas Marshall: In the '~D~' zone, yes. Jim Scott: This block? Thomas Marshall: Yes. Jim Scott: We have quite a bit of control for the extent of the 3-A block, as you can see from looking at the shallow maps going down to the deeper maps. The fault control, there are approximately four wells, three wells for control of this fault. There are approximately seven or eight wells for control of this fault. The exact magnitude, strike, the displacement, is definitely known on each of these faults. And these are the faults that we find this sliver. Fault plane maps have been con- structed on each of these faults in conjunction with structural contour maps we have delineated the fault blocks~'and the datum gaps shown as the "blank'~ areas. Thomas Marshall: I notice there is approximately over 900 feet of difference in the datum of the lowest oil production in that little sliver block in "D'~, as opposed to the one directly north of it, it is also stated as an oil accumulation. Jim Scott: Yes, sir. Thomas Marshall: I'm just wondering if we're going to have any problem there of, in our pool definitions, with the fact that these are the same reservoir. I'm quite sure on geological correlation from logs that they are straight across -27- correlations. Jim Scott: Thomas Marshall: consider. Yes, sir. I'm just thinking out loud. It is a problem we'll need to Thomas Marshall: I see. I nOticed in your "B" Pool the top of your interval is 1270'. W'hat tests or what evidence do you have for hydrocarbons in that upper interval, that shallow? Jim Scott: This data is based on "E" log interpretation, porosity, porosity logs, as well as resistivity logs. Thomas Marshall: Have there been formation tests in that area? 3ira Scott: No, sir. We feel that the proximity of the shallow pool precludes any development of that, but this to be consistent with the pool concept we felt, as I explained to Mr. Gilbreth, that we should establish a hydrocarbon- bearing interval, or possibly a hydrocarbon-bearing interval, on the top end and a reasonable interval on the lower end, a reasonable separation. -28- faults. Jim Scott: Possibly I can elucidate a little bit. That is, we feel there is definite structural separation between this block and this block. Consequently, no common reservoir would occur across this. There would be no feed-in from here to there. Now, the effect of the NW-1 fault, this big fault which is southerly dipping fault in NW-2, the effect minimizes as you approach this area over here where the displacement is not quite as great, but, for instance, in this area you are looking at somewhere in the vicinity of 1400' displacement on the NW-1 fault. ~,rW-2, which is a north-dipping fault, we have displacements with a magnitude of 800', or 600 to 800 feet. Thomas Marshall: Your fault bounding your reservoir on the east is generalized, is it not? This fault zone is generalized into one line pretty well? Jim Scott: No, sir. We have .mapped this fault also and we feel that this is a valid, as well as this, as well as this. These are valid locations. Thomas Marshall: In other words, that is the boundary of the reservoir in that pool fault sliver. Jim Scott: Yes, sir, yes, sir. We have fault plane maps on each of the Thomas biarshall: I see a possible problem there, though, unless we have fairly strong evidence that an interval is actually hydrocarbon-producing from the standpoint of actually physically producing oil on test or,some other means, a formation test or production test, I'm wondering about where we could actually say firmly that we have recovered hydrocarbons in that "D" interval. What's the upper limit where we have actually tested an individual sand and recovered a hydrocarbon? Jim Scott: The upper limit is at approximately 8400 to 8500 feet subsea. That is the uppermost drill stem test that we have. O. K. Gilbreth: ~.fhat was that depth again? Jim Scott: What did I say? 24 or 25 (LAUGHTER) 2400 or 2500 feet subsea. Thomas Marshall: Mr. Scott, on your "B'; Pool you list your contour interval as the 44-7 sand or at least I gathered it, that is the datum which the map is contoured. Jim Scott: Yes, sir. As shown on Exhibit 4, Mr. Marshall, on the left is structure contour map #1, the top of the 44-7 sand. The 44-7 is one of the "B" Pool sands. Mr. ~rshall: Would you show me on a log about where that interval is? Jim Scott: The upper productive interval that we DST'd? Thomas Marshall: No, this 44 (indiscernible) Jim Scott: The structural horizons that were contoured are shown on your log as well as the contour horizon. Thomas Marshall: About what depth does that lie on that particular well? Jim Scott: That's 4875 in the type log. Thomas l~arsha!l: Does the limit of your pool then in this "B" sand, your upper limit, this 1270 datum, if this was the contour interval of you.~ exhibit, would your field be larger or smaller on that interval? Jim Scott: I couldn't testify to that, Mr. Marshall. We have no data as to accumulation limit on that sand. This is merely log interpretation for what we feel is potentially hydrocarbon-bearing sand. Thomas Marshall: Well, let me ask you then. Would your log interpretation, your field limit on the basis of the log interpretation be larger or smaller? I mean we're using the log interpretation to peg the top of the pool and, presumably then, the -29- log interpretation would give data as to the extent of the pool, if the wells were properly spaced. Jim Scott: Well, Mr. Marshall, the log data is applicable to the structural information and the structural interpretation, but without further log data as to a lower limit of this particular sand we have no information as to accumulation. The only thing we could imply would be a minimum and to do that we'd take the base of the lowest sand at 1270. The base would apply to a minimum. Thomas Marshall: Well, let me put it a little bit different then. Do you have a reasonable confidence in the horizon of 1270 being the hydrocarbon producing? Jim Scott: No, sir. I said hydrocarbon bearing. We have no DST information it has been producing over in the field. The producibility of the sand, we have no idea. I said hydrocarbon bearing, hydrocarbon-bearing sand. ~]~omas Marshall: Mr. Gilbreth has brought up the point that we have to consider whether it is a common hydrocarbon bearing, whether it is a common accumulation, this is another problem. Jim' Scott: This sand can be correlated in other wells in the field. One thing that we possibly should remember is that these are all directional wells and the location of datums at that depth would be very minimum. You don't have any areal extent because of the shallowness of the horizon, so consequently the data that we get, the structural maps, whatever, we only have data on a very, very small are a. Thomas Marshall: Well, that's because of the peculiarity of the platform develop- ment. Jim Scott: Yes, sir, that's true. I would like to clarify one thing Mr. Isaacs said when he was speaking with Mr. Gilbreth in reference to the 2-A block, when he was talking about dips being less than 15°. Mr. Marshall: I see. Would you point that out, is that your main reservoir block? Jim Scott: Yes, sir. This is a 2-A block. Thomas Marshall: Could you or Mr. Isaacs point out again the gas/oil ratios in the "D" and "E" pools in the 2-A block. Would you refresh our memories on this? I am quite sure you touched on this. -30- Bud Isaacs: Refer to the letter of application, Exhibit "F". We do not have these wells broken down on this exhibit as fault block, but I will insert behind these wells as we go down them and read you the most current test to my knowledge, anyway, and what fault block they are in and what their oil and gas ratio is. A-2 Long is a fault block 2-A Well in the Hemlock Pool. It makes 280 barrels of oil per day with an 1121 gas/oil ratio. Well A-8 Long is a Fault Block 2-A Well. It is completed in the ~'E" Pool. It makes 937 barrels of oil per day with a gas/oil ratio ~f 950. Well A-10 Short is a Fault Block 2-A Well completed in the "C" Pool producing 1589 barrels of oil per day with a gas/oil ratio of 1774. Well A-ii is a Fault Block 2-A Well producing from the "D" Pool making 1149 barrels of oil per day with a 418 gas/oil ratio. Well 13 Short is a producer from Fault Block 2-A completed in the "CTM, "D" and "E" Pools making 2429 barrels of oil per day with a gas/oil ratio of 1576. Well A-13 Long is a Fault Block 2-A Well completed in the Hemlock Pool, 406 barrels per day with 453 gas/oil ratio. 14 Short is a 2-A Completion in the "B" Pool making 2432 barrels a day at 1136. 14 Long completed in the Hemlock Pool, 245 barrels per day, 596 gas/oil ratio. 16 Short is a 2-A Fault Block Well completed in the "C" Pool, 2371 and a gas/oil ratio of 1051. 16 Long is a 2-A Well, Hemlock Pool, 584 barrels per day, 1063 gas/oil ratio. 17 Short is a "D" Pool, 1671 barrels per day, 420 gas/oil ratio, and A-19 is a 2-A Fault Block, completed in the "D" Pool making 2769 barrels of oil per day with a gas/oil ratio of 940. Thomas Marshall: Thank you for clarifying that. You asked for con~ningling in one of your proposed rules in the "D'~ and "E" pools. I noticed that the "E" Pool is, you have a gas cap, gas production zone in the "E" Pool there. Do you consider , this to present any problem on commingling? Your "D" Pool doesn't indicate any free gas cap. Bud Isaacs: Thomas Marshall: I do not feel that it will present a problem, no. Are you requesting commingling in all wells? Actually, I would, it would appear to me speaking as a geologist and not an engineer. What, would there be some problem with the commingling production from, let's say that gas cap zone in the "E" Pool with the '~D" Pool Reservoir? Hydrostatic pressure? -31- Bud Isaacs: No, if you will refer back to the previous testimony, commingling was allowed in all the Middle Kenai Pools of Trading Bay Field. This is in Conserva- tion Order 57. During this period in which this Conservation Order was in effect we have commingled "E" Pool production with '~D" Pool. We have found that they are compatible and no adverse effects are felt by commingling. Thomas Marshall: I'm not sure that the, I'm quite sure I should say that the "E'~ Pool gas zone was not delineated with the preciseness it was at this time, when that other Order was written. In fact, I question whether it was delineated at all. You're satisfied that there is.~"no~.'~commingling problem, then, with the "Ei' gas zone there and the I'D" oil pool. Bud Isaacs: You are correct in your assumption. At the time of the previous testimony it was thought to be an entire gas reservoir. The wells that we are considering commingling in, the wells that we have commingled in, are in the oil zone of the saturated "E" Pools. Consequently, there has been no problem of this gas that you are mentioning in the commingled wells with the "D" and the "E" Pools. Thomas Marshall: Do you think that we ought to stipulate in our Order some restric- tion on, to the effect of what you say is common practice? Well, this of course is our worry, but Bud Isaacs: Well, I'm not sure that there is a question implied there or not. Are you asking me a direct question as to whether I feel that you should put something in? I think it's (indiscernible - laughter) Thomas Marshall: You've answered my question. However, it's germinating a litt,le food for my own thought on this particular project. In the pools where you do intend to initiate a water-~flood, could you, in a particular pool, point out the proposed injection wells so that I can get an idea of what your geometry is? I'm not too sure of just what type of movement would happen. Bud Isaacs: In the Hemlock Pools we plan to have, A-il which is right here, actually, in the Hemlock it is right, that's bottom hole location, in the Hemlock it's just outside the oil/water contact right here. A-17 which is on the oil/water contact, and at some later date because we are, at some later date convert A-19, as ~an injector~ then we will have this peripheral (indiscernible). -32- Would there be any injector in the upper northwest area of that, Thomas Marshall: along that fault? Bud Isaacs: No, there would not be. This would be quite possibly called the limit of peripheral. We have good fault boundary here that we can drive. Thomas Marshall: Tha~k you. That finishes my questioning. Bud Isaacs: Mr. Gilbreth, you had another question. O. K. Gilbreth: Mr. Isaacs, this leads to, the answers of yours led to two or three other questions that I had. Your last statement there about the fault block. Is there, the area that you intend to put the project in where the '~D'~ and Hemlock Pools, is it bounded by faults such as matter that the original communication across the faults? Bud Isaacs: That is correct. O. K. Gilbreth: I'd like to go back to Mr. Scott just a minute on this business about the Upper Pool definition. Could you tell me where, in your opinion, where the common reservoir is located, that the top of the common reservoir that is producing at a - 2489 in the "B'~ Pool. Is it clear up to the 1200 feet? The common reservoir, now. Common accumulation. Jim Scott: I'm sorry, Mr. Gilbreth, I still don't understand the question. O. K. Gilbreth: What I'm trying to find out, we have an accumulation of oil or hydrocarbons that are producing now at apparently -2489, by virtue of the defini- tions in our Conservation Regulations and the State Statute under which we operate. We must define these as being a common source of supply or common accumulation. I'm trying to find out if, in your opinion, the hydrocarbons that you find at 1200' are part of the same common accumulation or, if not, where would the top of that accumula- tion be? Jim Scott: This is Jim Scott. Well, let me explain like this. This is a lower limit of the "B", as proposed. The upper limit of the '~B", as proposed, is 1270. The shallowest completion is mentioned in testimony as approximately 2400 or 2500 feet which occurs in this, on the type log in this interval in here. O. K. Gilbreth: That is around 20? Jim Scott: 32 or so. This is the uppermost pool, if you will, or reservoir, that we have at least one well producing from, or have at this time. -33- O. K. Gilbreth: Now, ray question, Mr. Scott, is, where is the top of this accumulation? Is it on up to 1200' or is it somewhere in between? Jim Scott: Well, the top of the "B" accumulation we feel that there are additional sands here that are hydrocarbon-bearing, potentially hydrocarbon-bearing, the upper limit being the 1270. O. K. Gilbreth: In other words, by placing the definition at the 1200, you're not necessarily implying that that is the top of the accumulation that is producing at 2400. Jim Scott: Oh, no, sir. No, sir. This is a separate accumulation. O. K. Gilbreth: Mr. Isaacs, on the wells where com~ningling, where you are requesting permission ~to commingle, will those wells be equipped with the capability of testing the individual zones? Bud Isaacs: Yes, as so stated in the testimony. O. K. Gilbreth: I would like to ask then if the project is, are approved and the regulations that you have recommended written with the correlative rights of all interests in the field, or in the pools, be protected, in your opinion? Bud Isaacs: Yes. O. K. Gilbreth: And no party would be adversely affected? Bud Isaacs: That is correct. O. K. Gilbreth: That is all I have. Homer Burrell: I would question for whoever wants to field it, I think your Exhibit I which is rolled back there indicates there is 80 acres of the area that you propose to be separate from these rules within the Trading Bay unit. I~ that correct? Wade McAlister: Homer Burrell: present time? Wade McAlister: Yes, sir. Is that 80 acres subject to the MacArthur River Field at the No, sir. Homer Burrell: Is there any portion of the area which you propose be subject to this Order, or subject to any other Order, other than the two you requested or proposed rules, that they be amended or cancelled or modified or whatever. Do we have any conflict with any other? -34- Wade McAlister: No, sir. Other than the Conservation Order 69 (indiscernible) This is Wade McAlister speaking, for the record. Homer Burrell: Thank you, Mr. McAlister. Do you have any questions, Mr. Kugler? Harry Kugl~er: Yes, sir. I have a question of Mr. Scott. This is Harry Kugler speaking. Could we point out where the C-7 Sand is on the type well. Jim Scott: Jim Scott referring to Exhibit III. C-7 sand occurs at approximately 5230 on the Trading Bay State A-14. Har~e_r: About middle way into this "C" Pool? Jim Scott: Yes, sir. Harry Kugle~r: And on the contour map on the "C" Pool where would that top fall, say on the A-19 Well, on the C-7 Sand? Jim Scott: This is a structure map on the C-7 and the data on this is located right here on A-19 on Exhibit IV. Harry. Kugler: Which well determines the limits of accumulation on that "C~' Pool? Jim Scott: The accumulation limit of the "Ct' is determined by the lowest well encountered in ~C" which is the A-17, pardon me, the A-19. Har~: And the lower sands in it were wet? Jim Scott: There is an oil/water contact in A-19 in C-7. Harr~gler: And where would it fall on this map, the oil/water contact? Jim Scott: Well, this is the estimated productive, I'm sorry, let me rephrase that. The lower limit of the C-7 Sand, the accumulation limit, is shown as this DASH line, the data derived was the base of the lowest hydrocarbon-bearing sand. There is not an oil/water dam in C-7. Harry_Kugler: Did the A-19 cut the entire "C" Pool interval? Jim Scott: Yes, sir. Harry KuB!er: And where did it exit from the "C" Pool sands on your map? Jim Scott: This is the top of the C-7. I don't have the top of the "D'~ marked which would be the lower limit of the ~C~'. Harry Kugler: Do we have it marked on the "D" map? Jim Scott: No, sir. We have the structural horizon of the "D" which is the 57-2, so it would have to be between about 7800, it would be within this interval -35- right here. Har~ F. ugle__r: Jim Scott: And it was all hydrocarbon-bearing? I don't recall, sir. The "C" interval in A-197 Harry Ku_gter: Jim Scott: Harry Kug~er: Yes. I don't recall, sir. I see. You show the old number 3 here drilled from a floater as within the limits of accumulation? Jim Scott: Yes, sir. ~iarrff ~ugler: And did it have an oil/water contact? Jim Scott: No, sir. The sand is much thinner in 3, but the electric log evaluation of that sand, it appears to be hydrocarbon-bearing. .H. arry Kugle. r: b~h huh. Have you run a planimeter on this and determined about the areal extent of your limit of accumulation in Fault Block 2-A? Jim Scott: No, sir. I haven't. Harry Kugler: Do you have any estimate about how many acres are productive? Jim Scott: I would say in excess of 500. tlarry Kugler: How many wells do you have producing from the "C" pool? Jim Scott: Referring to Exhibit "B" in the application, the A-1 well shut-in has been completed in the "B". The only producing wells are A-7, A-10, 13, 16, and that's all. That's on Exhibit "B" of the application. Four wells that are producing in the so-called ~'C'j Pool. .Harry Kug~l_e_r: Jim Scott: ~H_arry Kug le r: Yes, sir. If the Committee were to approve these pool designations, about how many more wells would you drill into the "C~' Pool? Jim Scott: I would like for Mr. Isaacs to answer that question. Bud Isaacs: This is Bud Isaacs again. Currently, as was indicated in Exhibit ~'A" of the letter of application, we have proposals for A-21 and A-24, and these are proposals that have not been approved or anything of this nature. So there are two wells and A-22, the well that we are drilling currently, would make three wells, in answer to your question. -36- Harr~gle~rr: These are to be drilled into the "C" Pool, but they would be injectors into the ~'C" Pool? Bud Isaacs: That is what is planned right now, depending on the outcome of it. tlar____~ Kugler~: Will you drill more producing wells in this pool? Bud Isaacs: This would depend on what A-22, what the evaluation from this new stepout well would indicate. Har~K~u 1~: But it's going to cut the top of the "C" Pool sands quite aways up into the center of the field? Bud Isaacs: Well, actually, not, it will be the furthest, correct me here if I'm, well maybe Jim should answer that. Let me see, that's in geology. (LAUGHTER) Jim Scott: Is this the A-22 Well? Harry K. ugl. er: The A-22 Well, yes -- I would like to know what it will tell you. Jim Scott: This is Jim Scott referring to Exhibit IV. It will intercept this C-7 fairly close to this section line. The well course is proposed like so. It will be fairly close to the section line. ~arry Kugler: It will be beyond the pool limits? Jim Scott: There are 30 some sands in that well and (indiscernible) Harry Kugler: It should encounter the C-7 oil/water contact? Jim Scott: Yes, sir. Harry Kugler: I see. And you think it will hit the center of the so-called "C" Pool beyond the limits of accumulation? Jim Scott: It should have an oil/water contact, yes, sir. H. arz-y Kugle. r: This will be all the development then for the "C" pools? Now you've answered this as depending on this well, it is planned that it will hit the oil/water contact in the "C" Pool, so further development would be more at the crest. Bud Isaacs: Again, it will depend on the outcome of this well, as you say. Harry Kugler: Let's go to 'the "D" Pool then. The "D" and the "E" Pool you want to commingle? Let me ask Jim Scott this question. You're going to plan to commingle the production from the "D" and "E'; Pools? Jim Scott: Yes, sir. H_arry Kugler: And what is the reason for defining two pools if they are going to be commingled? Let me ask that question. -37- Jim Scott: Mr. Isaacs should possibly answer that question. (LAUGHTER) Bud Isaacs: This is Mr. Isaacs. As so stated in the testimony and as indicated on Exhibit IV, you can see that we have a gas cap in the "E" Pools and we do not have one that we know of in the "D" Pools. In the two cases then we have a saturated reservoir and an undersaturated reservoir. Now in maintaining pressure for the sake of conservation, if for nothing else, we cannot commingle these pools, we cannot join them into one pool, make them one pool, and hope to recover or to develop them fully. In other words, they have to remain separated, as we stated in our first summary point in conclusion. For the maximum development of these pools that we have so stated, we want to maintain, segregate all of these pools even though they will be in a commingling. We will have, as Mr. Gilbreth stated earlier, that there will be a versatility and we will control the production through tests from the various pools. Harry Kugler: Commingling, now you have probably stated this already, but commingling will not essentially make one pool out of it? Bud Isaacs: That is correct. Harry Kugler: There will still be a different pressure maintained if you commingle "D" and "E"? Bud Isaacs: That's right. We have (indiscernible) on the records now there is a pressure maintenance in the "D'' Pools. Harry Kugler: But if you commingle oil sands in the "E" Pool with the ~'D" Pool, will not the pressure equalize? Bud Isaacs: This is something that may come with time, as you see we have a gas cap which means you have two reservoirs with different sources of energy for p.roducing them, and one you have got an expanding gas cap and the other we are putting in a pressure maintenance to drive the pressure up from the aquifer in a peripheral sense. Consequently, you have a mechanism in the "E" Pools already in existence, a so to speak pressure maintenance, this is the expansion of that gas cap. Now we will be, in that we are flooding the "D" Pool, there will come a time that we will want to keep these together when we get water breakthrough and things. We want to have the versatility. Otherwise, we could not, as I mentioned in the testimony, due to the triple completions that are impossible or we feel are im- possible in these directional wells and the limited areal extent is indicated in Exhibit IV here between the :'E" Pools and the overlying and the underlying Hemlock and "D'~ Pool. Consequently, we need this versatility in order to produce all the oil that is there; othez~ise, if we go back to where they are considered as one pool, our pressure maintenance project in the "D" Pool will be affected because of this "E" Pool that is there. We have got two different sources of energy there. ~: Well, if you have them commingled and you put, have good luck and get a lot of water into the sands in the "D" Pool, will the production be cut off essentially from the commingled sands in the '~E" Pool? Bud Isaacs: Well, this will have to be determined at a later time. We do not know how these, when you're talking about water breakthrough, if you will look at Exhibit IV again, you will see that our injectors are out on the periphery which are a considerable distance from the areal extent of the "E" Pool. So we're talking about an extended period of time (indiscernible - plane flying overhead) areal portion of the "D" Pool are comparable portions to the "E" Pool. Harry Kugler: Alright, Mr. Isaacs. How many development wells do you plan in the "D'~ Pool? Does this depend on A-22 again? Bud Isaacs: Are you referring to additional wells or wells that we have currently there? Harry Kugl..er: Bud Isaacs: Additional wells, into the "D" Pool. The proposed wells that we mentioned are currently planned to penetrate the "~D" Pools, so we will be able to, number one, as you mentioned, the interpretation of A-22 will make a great deal of difference as to what we do out at that flank of the reservoir. And then the proposed A-21 and A-24 have also planned to penetrate that pool. Harry Kugler: I see. And those are, which of those will, they could inject into the "D'~ Sand or the "D" Pool? Bud Isaacs: Yes. As indicated in Exhibit 'lA" of the Letter of Application, they are planned to be injectors into the "D" Pools. Homer Burrell: Thank you, Mr. Kugler. I have one question of Mr. Isaacs. Would you seek to commingle the "D" and "E'~ Pools, absence of pressure maintenance -39- in the "D" Pool? Bud Isaacs: We have done this to date. Homer Burrell: i.R~ich you plan to continue in. Do you think there is, without the pressure maintenance project, do you think it would be a problem? Long range? Bud Isaacs: Do I think there would be a problem? I'm not sure I under- stand. Homer Burrelt: Do you think the pressure would equalize bet~een the two reservoirs and possibly result in less recovery than you would otnerwls get, without pressure maintenance? Bud Isaacs: Considering ultimate recovery, to my knowledge and again I haven't done work along this line because we plan to go the other route, I would feel that commingling ~ould not adversely affect, if anything it would stimulate, the ultimate recovery. Karl VonderAJ~e: Primarily because of the extra drive from the gas in the ~'E" reservoir? Bud Isaacs: Primarily -- we're talking oil from the "E" Pool that we would not get otherwise. Homer Burrell: Karl VonderAhe: ttomer Burrell: Lonnie Smith: Thank you. Mr. VonderAhe? I have nothing. Mr. Smith? Yes. Mr. Isaacs, you state, I believe, in your testimony that the injection from the six proposed injection ~ells would be controlled as to specific volumes into each pool being flooded. Would you explain specifically how this will be accomplished? Equipment-wise, I'm talking about, downhole equipment, or surface equipment in confining the volumes. Bud Isaacs: This is Bud Isaacs again. As stated in the testimony, an example of an injector was A-5 redrill which we can refer to Exhibit 'tX". This is a well that we currently have an injection test. Basically, this is the same well configuration that we'll have for controlling injection into two pools. We will have dual packer's run and two strings of 2-7/8 or some type of tubing. Lonnie S~mith: Okay. Thank you, Mr. Isaacs. By the same token, then, on the production setup you testified that it was necessary to commingle the production -40- from the "E" Pool with the "D" Pool and that, I believe over here, "the production string will have the versatility of producing either of these pools in order to allocate production based on individual tests". Can you elaborate on this, please? Bud Isaacs: Yes. There will be an additional packer than is shown on the Exhibit ~'X" of my testimony in the production wells from the commingled ,4 I'll drop back -- There will be an additional packer than is shown on this exhibit with those wells that we will be commingling. This packer will segregate the "D'~ Pool from the "E" Pool. Lonnie Smith: I'm not sure I'm with you. Now you're talking about, you're referring to the Exhibit "X" as the type well there. Bud Isaacs: I'm just using it as a-- Lonnie Smith: Yes. Bud Isaacs: ~ p~cture. If we were to put in another packer on this well above the uppermost packer and then put sliding sleeves into the tubing strings, we then would have what I am referring to in my testimony. Lonnie Smith: You have one sliding sleeve in a string above that upper packer? Bud Isaacs: That is correct. Lonnie Smith: And one in between? Bud Isaacs: That is correct. Lonnie Smith: So you would have a three packer setup with dual strings? Bud Isaacs: That is correct. Lonnie Smith: And then by closing these sleeves selectively you can individually test either zone, is that it? Bud Isaacs: That is correct. Lonnie Smith: Have you done some testing of this sort in your commingling production in some of the wells today? Bud Isaacs: We are currently working in Trading Bay State A-8 in that manner and we are producing the "E~ Pool through one of these sliding sleeves. Lonnie Smith: How does your individual, your cumulative of the individual production data from the, correlate with the commingled production data? I mean, do you have slightly different well tests in addition when you're producing one zone by itself or is it both zones together in commingled status? Do you notice any -41- variation or any problems with allocating production back to, based on the well test, you come up with more oil than you have available to allocate? Bud Isaacs: Not to my knowledge. Lonnie Smith: The reservoirs you have testified and show as evidence that they do have slight different reservoir pressures and so they will naturally produce a little bit different, and when they are commingled, well, one will affect the other a little, especially if, and it might change from what it is now if you increase the pressure as you so indicated in the "D" Pool. You indicated its pressure now is approximately 2000 pounds, where the "E" Pool is 2300, and you plan to increase the ~'D" Pool somewhat. How much do you propose to increase the production, the pressure, reservoir pressure, of the "DT' Pool, based on your estimates? Bud Isaacs: I would have to go back to the (indiscernible) and pick some point in time as to what this pressure increase is. They are, this would naturally depend on how different wells take the water, how much water we can ultimately get away, and how the actual pressure disseminates from the injectors, so I could not give you. This pressure will vary throughout the field, naturally, being higher as the injectors disseminating to the producers. Consequently, I cannot say at this point what the ultimate pressure of the "D'' Pool or Hemlock Pool will be when under inj e ct ion. Lonnie Smith: Okay. Thank you. Homer Burrell: Is that all you have, Mr. Smith? Lonnie Smith: Un huh. Homer Burrell: Mr. Gilbreth, do you have any questions? Mr. Marshall? Thomas Marshall: No, sir. Homer Burrell: Mr. Kugler? _Harry. _Kugler: No, sir. Homer Burrell: Mr. VonderAi~e? Karl VonderAhe~ No, sir. Homer Burrell: If there are no more questions from the committee, are there any questions from anybody in the audience, or does anybody in the audience want to make a statement? Do you have anything further, Mr. McAlister? Wade McAlister: the hearing open. Homer Burrell: Yes, I was wondering if there is any possibility of holding Yes. Would any delay in getting any part or all of it -42- in the Order that has been requested here cause you any problems with your planned drilling or secondary recovery operations? Wade McAlist~r: One problem that might be raised as depending upon when an Order would be issued coming out of this hearing is with our present producing A-19 Well. That well is producing under Conservation Order #86, an exception. That exception runs out on August 1 and it would be possible this would be adversely affected. However, an extension of Conservation Order #86 would probably alleviate any problem there. Other than that, I see no other problem. Homer Burrell: I think we could extend that if your Order was delayed beyond that point. Mr. Isaacs, how much time do you think you need to get the information Mr. Gilbreth requested from you? Bud Isaacs: I have the calculations back at the office, so I can get this to him within this week, if he so desires. I've got rough numbers, but I would prefer to go through these again if it is going to be a matter of record. t~omer Burrell: Shall we hold this hearing open until Monday, July 6? That would give you plenty of time, wouldn't it? We'll keep the record of this hearing open until ~.fonday, July 6 to give you an opportunity to present that, or if anybody wants to submit any statement or anything he will be free to do so within that time. Wade McAlister: Would you at this time extend Conservation Order #86, accordingly, or would you -- i{omer Burrell: 'We'll cross that bridge when we get to it. I don't know that it would be necessary. We may be able to write an Order in advance of that time, but that's the way the Order is going to read. If there is nothing else then, we' 11 adjourn. -43- NOTICE OF PUBLIC HEAR tNG STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS Alaska Oil and Gas Conservation Committee Conservation File No. 93 Re: The application of the Union Oil Company of California for redefinition of the Trading Bay Middle Kenai Oil Pools and for pressure maintenance projects in the Trading Bay Field. Notice is hereby given that Union Oil Company of California has applied for an order to: Redefine the following pools originally defined in Conservation Order No. 57: Trading Bay Middle Kenai Trading Bay Middle Kenai '~C" Trading Bay Middle Kenai "D" Trading Bay Mi ddle Kenai "ETM Grant an exception to !1 Alaska Admin. Code 2154 to permit commingling in the same well bore of production from the redefined Trading Bay Middle Kenaii "D" and Trading Bay Middle Kenai "E~'' oil pools. Approve a pressure maintenance project' for the redefined Trading Bay Middle Kenai ~"C'', Trading Bay Middle Kenai I"D~' and Hemlock oil pools, pursuant to !1 Alaska Admin. Code 2226. Grant a blanket exception for all existing wells in the Trading Bay Field that have already been completed in accordance with rules and regula- tions now in effect. Combine Conservation Order No. 57 with the requested order. A hearing on these matters will be held in the basement of the Ben Crawford Memorial Bui Iding, 5th & Eagle Street, Anchorage, Alaska, at 9:30 A. M., June 29, 1970, at which time testimony of the applicant and of affected and interested parties will be heard. Thomas R. Marshall, Jr. Executi ve Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish June 17, 1970 AFFIDAVIT OF PUBLICATION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. being first duly sworn on oath deposes and says that ...... ~.~.e.... is the .... Le~a-1---C-'l-.e~kof 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 ..T.~.n.t...~.o.~.j:.Ge. 2 91 7 as it was p~l~l~s~ed in regular issues (and not in supplemental form) of said newspaper for. a period of .... 0~e. ........ insertions, commencing on the ...... .1.."/.day of .... .J_'.~.e. ............ ,'19 .... .7. 9 and ending on the ........... !...7.... day of of -.-J-~ne .................. , 19 ...... 7,0 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 $17 50 which amount has been ~i-d -in full at the rate of 25¢ per line; Mini- mum charge $7.50. l~ .... ?..0 ,, Notary Publi,c in and f~/ the State of Alaska, ' Third Division, Anchorage, Alaska NOTICE OF ,.PUBLIC HEABING STATE o~; ALASKA ',DEP~T~N~ 0F NATU~: ~CZS - DIVISION OF O~ ~D GAS Alaska "O~ and Gas Conse~a~o~ Committee Conservation FEe. No. ~ Re: The: appllca~on ot~,,,the: U~on' OB. Comply oI Calffor~a~,ior redeI~tion.,~ ~e Tra~ng Bay ,' ;Middle ,,.~en~:'O~ Pools' '~d pressure mantena~ce~ ,,prol~. . Notice is hereby 2iven, that,,U~on O~.., a~m~'~p" oi California, has. 'a~, ~.pl~ed,,,fo~. ,, .,., ~, order to: . ~",'R~d~'~~ the ~oHowlng ,poO~ inaily d~fined -~ Conse~ation Order No. 57; Tra~g, Bay Midge Trading B~y Middle' Eenai Trading B~y Mid'ffi~, ,,,E'~n'~:.','~ Trading BaY,'Mid~,. Kena .. , . ~' ,. , , Code 2226. ' Grant 'a Manket,,exceptt~n tor'all ' ekisting wells- in' the', Tra'di~g 'BAY: ' Field' that. h~¥,e ~t~le~ed ,in aec~'r~ance ~'~es and '~egulations n~.~ :~ec~, ..... ' , C~,bine , '.57,with the re, ' lath . i Alasl~ ,jUN g,~ 19t DiVISIC;N C)F OIL AND GAS Union Oil and Gas Di( 3n: Western Region Union Oil Company of California 2805 Denali Street, Anchorage, Alaska 99503 Telephone (907) 277-1481 TRM June 12, 1970 union State of Alaska OKG Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Re- APPLICATION FOR REDEFINITION OF M IDPgE KENAI, POOL~ AND 'FOR PRESSURE MAINTENANCE PROJECTS, TRADING BAY FIELD Gentlemen: Pursuant to the Oil and Gas Conservation Regulations and applicable statutes of the State of Alaska, Union Oil Company of California, on behalf of itself and Marathon Oil Company, requests the issuance of a Conservation Order covering the area shown on Exhibit "A" to accomplish the following: 1. Define the following Oil Pools' (a) The Trading Bay' Middle Kenai "B" Oil Pools are defined as the intervals which correlate with the interval surface to 5010', drilled depth, in the Union Oil Company of California Trading Bay' State A-17 well. (b) The Trading Bay Middle Kenai "C" Oil Pools are defined as the intervals which correlate with the interval 4585' to 6225', drilled depth, in the Union Oil Company of California Trading Bay' State A-14 well. The Trading Bay Middle Kenai "D" Oil Pools are defined as the intervals which correlate with the interval 6225' to 7025', drilled depth, in the Union Oil Company' of California Trading Bay' State A-14 well. (d) The Trading Bay' Middle Kenai "E" Oil Pools are defined as the intervals which correlate with the interval 7025' to 7425', drilled depth, in the Union Oil Company' of California Trading Bay State A-14 well. , Allow commingling in the same well bore of production from the Middle Kenai "D" and Middle Kenai "E" Oil Pools. State of Alaska -2- Oil and Gas Conservation Committee Application for Redefinition of Middle Kenai Pools and for Pressure Maintenance Projects, Trading Bay Field June 12, 1970 ~ Establish pressure maintenance projects for the Middle Kenai "G", Middle Kenai "D" and Hemlock Oil Pools. · Allow permanent exception to the requested Conservation Order for all existing wells that have been completed in accordance with applicable rules, orders, regulations or statutes in effect at the time of completion. Except as necessary to conform with the proposals set forth herein, the provi- sions of Conservation Order No. 57 should be incorporated into the requested Conservation Order. The results of injectivity tests into the proposed Middle Kenai "D" Oil Pools and Hemlock Oil Pool of Fault Block.IIA, as well as the reservoir performance studies calculated by using a mathematical reservoir simulator, indicate sub- stantial additional oil recovery can be obtained from these Pools by pressure maintenance. The attached Exhibit "A" is a plat of the Trading Bay Field show- ing the leases included within the proposed project and the locations of oil and gas wells, proposed injection wells, abandoned wells, drilling wells and dry holes. Current plan of injection into Fault Block IIA calls for peripheral injec- tion into three wells in the "C" Pools, four wells in the "D" Pools and three wells in the Hemlock Pool. In Fault Block IIA there are three oil completions in the "C" Pools, seven oil completions in the "D" PoolS, two oil and one gas completion in the "E" Pools and five oil completions in the Hemlock Pool. These completions are more particularly identified on Exhibit "B". The currently drilling Trading Bay State A-22 well is programmed for completion as a producer in the "C" Pools and as an injector in the "D" Pools and will drill through the Hemlock Pool. This well on the southwestern flank of Fault Block IIA may indicate other injection schemes are advisable to maximize recovery. The "C" Pools, the shallowest of the proposed injection intervals, are a series on non- marine Tertiary sands and sandy conglomerates with interbedded siltstones and coals. In the area of this proposed project, the top of these Pools vary from 3812' to 4176' subsea. Underlying the "C" Pools are the "D" Pools. These non-marine Tertiary Pools are generally a series of thin sands and conglomerates with interbedded siltstones and coals. The top of these Pools vary from 5026' to 5366' subsea in the area of the proposed project. The lowest Pool to be pressure maintained by water injection is the non-marine Tertiary Hemlock Conglomerate. The Hemlock Pool is a thick conglomerate with sandstone lenses and occasional interbedded thin siltstones. The top of the Hemlock varies from 5797' to 6292' subsea in the proposed project area. State of Alaska - 3 - Oil and Gas Conservation Committee Application for Redefinition of Middle Kenai Pools and for Pressure Maintenance Projects, Trading Bay Field June 12, 1970 Exhibits "C" and "D" are Dual Induction Laterologs of wells Trading Bay State A-5 and A-17, the only existing injection wells. The casing and cementing record of Trading Bay State A-5 on Exhibit "E" is shown as an example of our proposed practice for injectors. This will essentially be followed in other in- jectors subject to variations required by depth differences in particular wells. Each injector will be equipped with a packer above the injection perforations. Where a producing and/or injecting zone exists above or below the injection interval, a cement squeeze will separate them. Pressure will be maintained on the annulus above the top injection packer in cases where no production in- terval overlies an injection interval. Casing will be pressure tested to 2000 psig before final installation of injection tubing. Test injection of filtered and treated Cook Inlet water has been conducted in the "D" (5500 BWPD) and Hemlock Pools (3000 BWPD) in Fault Block II A. By October, 1970, plans are to inject 7000 BWPD into the "C" Pools, 20,000 BWPD into the "D" Pools and 3000 BWPD into the Hemlock Pool, for a total of 30,000 BWPD at 3000 psig. This injection will be going into approximately 10 comple- tions. A tabulation showing recent gas oil ratio and oil and water production tests for each of the producing wells is attached as Exhibit Union Oil Company of California, 2805 Denali Street, Anchorage, Alaska 99503, will be the operator of the pressure maintenance projects. Texaco, Inc., as operator for itself and The Superior Oil Company, is the only operator other than applicant to be affected by' the requested Conservation Order. A copy of this application is being mailed on this date to Texaco, Superior and to all Trading Bay' Unit participants as evidenced by the enclosed Affidavit of Mailing marked Exhibit "G". Detailed data in support of this application will be presented at a public hearing which we respectfully' request be held on June 26, 1970. "ruly' your' .,,'"' -E:[g%ne .~." ~if~in // // Distric~perations Manager Anchorage Distr~ct Enclosures WSM/nr ' 3213S TS-~' , T~,S 'i 'r~x,,oo ADL 18775 ' m 2 I ~ --TDg, I04 ~ SUPERIOR ~'FD6627 J m ADL I7597 3253 m 3313 4 .i 34 ..... -' i_~l' TD6790 m , A-2I : ~l I I I m m m m m~__))~J~ (.0, ?~ EXHIBIT A ADLI8776 T. 9 N UN ION -M A RATHO N 9(j ~ ~ , ADL 187 51 , ,,er', INJECTION WELL R I$ W ---~., TBU ~ m/I PROPOSED C 0 ADL 17596 ,.~ U-M ETD ~1 TD 10,364 UNION OIL COMPANY OF CALFORNIA ALASKA DISTRICT TRADING BAY FIELD COOK INLET, ALASKA APPLICATION FOR REDEFINITION OF MIDDLE KENAI POOLS AND PRESSURE MAINTENANCE PROJECTS JUNE 12, 1.970' EXHI B,I TS C AND D ENCLOSED I N POCKET We 11 No. TBS A-1 TBS A-2 TBS A-3 TBS A-4 TBS A-5 RD TBS A-6 TBS A-7 TBS A-$ TBS A-9 TBS A- 10 TBS A- 11 TBS A- 1,2 TBS A- 13 TBS A- 14 TBS A- 15 TBS A- 16 TBS A- 17 TBS A-18 TBS A- 19 EXHI BlT B TO ACCOMPANY APPLICATION FOR REDEFINITION OF MIDDLE KENAI POOLS AND PRESSURE bt&INTENANCE PROJECTS (Well Completions by Pool) Ty~pe Completion Single Dual Dual Single Dual Single Dual Single Du a 1 Dual Single Dual Du a 1 Dua 1 ~ ~"" '~'"' i?~' Ii'! ''~' ~' .... I'" i,'..l ...... t~: ,::,, .... :, ~7' 1", ,, .... Single Completed Intervals B and C, Shut In E Shut In and Hemlock Shut In Shut In C Shut In D injector Itemlock C and C-D Shut In or Hemlock Shut In B Shut In C and D Shut In Ab an do ne d C-D-E and Hemlock D and Hemlock Hemlock C and Hemlock D producer Hemlock injeCtor D-E and t-temlock (Texaco Block) TO ACCOMPANY APPLICATION FOR REDEFINITION OF MIDDLE KENAI POOLS AND PRESSURE ~[ilNTENANCE PROJECTS (Well Completions by Pool) Well. No. TBS A-1 TBS A-2 TBS A-3 TBS A-$ RD TBS A-6 TBS A-7 % }x, 'i"a $ :',.- a TBS A-9 TBS A- 1.0 ,,i, "XTBS A-11 TBS A- 1.2 ~,, ,,," TBS A-13 ,,:::, ,," TBS A- 14 TBS A-- :15 TBS A- 16 TBS A- 1,7 x,', / TBS A-19 Type C..o, mp1 et ign Single Dual. Dual Single Dual Single Dual Single Dual Dual Single Dual Dual Dua 1 Sing le Completed Intervals B and C, Shut In E Shut In and ttemlock Shut In Shut In C Shut In D injector Hem 1 ock C and C-D Shut In or Hemlock Shut In B Shut In C and D Shut In ','"'~:, ': Abandoned C-D-E and Hemlock D and tlemlock Hemlock C and ltemlock D producer Hen~lock injector D-E and Hemlock (Texaco Block) EXHIBIT E CASING AND CEMENTING RECORD OF TBS A-5 To accompany application for redefinition of Middle Kenai Pools and Pressure Maintenance Projects TRADING BAY FIELD Casing Size '13-3/8 9 -5/8 DV DV Weight Lb/Ft 61 lb. 40 lb. 29 1,b. Depdz Set (MD) 1075 5836 4067 2439 75O6 ttole Size (In) 17-1/2 12-1/4 12-1/4 12-1/4 8-1/2 Cementing Record 1,;200 SX 1200 SX 1075 SX 1300 SX 350 SX Amount Pulled NOlle None None c... o. ff~ EXHIBIT TriBULATION OF PRODUCTION TESTS ON PRODUCING OIL WELLS To accompany application for redefinition of Middle KenM Pools and Pressure Maintenance Projects TRADING BAY FIELD Well. No. A -2L A-6 · A-7S A-8L A -10S A-11 A -13S A -13L A -14S A -14L A --15 A-i6S A-16L A-17S A-18S A-18L A-19. Test Date 6 -09 -70 5 -28 -70 6 -09 -70 5 -29 -70 4:-18 -70 5 -26 -70 5-1.9 -70 6 -08 -70 6 -06 -7O 5 -29 -7O 6-08-70 5 -23 -70 5 -30 -70 6 -07 -70 6 -02 -70 5 -.18 -70 5 45 770., Pool l-'-Ienxlock Hemlock C E D C, D, & E Hemlock D Hemlock Hemlock C Hemlock D D&E Hemlock D BOPD 280 431 142 937 1589 1149 2429 406 24:32 245 67 2371 584 1.671 688 242 2769 MCF/D 314 475 127 890 2819 481 3829 1.84 2763 146 35 2510 621. 702 217 351 2602 GOR 1121 1102 899 950 1774 418 1.576 453 1136 596 522 '4051 1063 420 315 1450 940 Cu.t 0.4 2.3 0.4 0.3 0.1 1.0 0.5 1.0 0.3 5.4 0.4 0.3 1.0 0.5 5.6 6.3 0ol EXHIBIT F TABULATION OF PRODUCTION TESTS ON PRODUCING OIL WELLS To accompany application for redefinition of Middle Kenai Pools and Pressure Maintenance Projects TRADING BAY FIELD 2~ Well No. A -2L A-6 'A-7S A -8L A -10S A -1.1 A ~13S A -13L A -14S A-14L A --15 A -16S A-16L A-17S A-18S A-18L A -19 Test Date 6-09-70 5-28-70 6 -09 -70 5-29-70 4-18-70 5-26-70 5-19-70 6-08-70 6 -06 -7O 5 -29 -70 6-08-70 5 -23 -70 5-30-70 6 -07 -70 6-02-70 5 -18 -70 5 -15-70 Pool Hemlock Hemlock D C, D, & E Hemlock D Hemlock Hemlock C Hemlock D D&E Hemlock D BOPD 280 431 142 937 1589 1149 2429 406 2432 245 67 2371 584 1671 688 242 2769 MCF/D 314 475 127 890 2819 481 3829 184 2763 1.46 35 '2510 621 7O2 217 351 2602 GOR 1121 1102 899 950 1774 418 1.576 453 1136 596 522 051 1063 420 315 1450 940 Cut O. 4 '"~' 2.3 0.4 0.3 r 0.1 1.0 0.5 1.0 0.3 5.4 0.4 0.3 1.0 0.5 5.6 6.3 0.1 , . , EXHIBIT "G" AFFIDAVIT OF MAILING STATE OF ALASKA THIRD JUDICIAL DISTRICT Nelda L. Rubert, being first duly sworn, deposes and says' That my name is Nelda L. Rubert and I am an employee of Union Oil Company of California. That on the 15th of June, 1970, I personally mailed a copy of the application dated June 12, 1970, of which this Affidavit is a part, for a Conservation Order to redefine the Trading Bay Middle Kenai "B", "C", "D" and "E" Oil Pools and to establish pressure maintenance projects for the Middle Kenai C, Middle Kenai m and Hemlock Oil Pools to each of the companies listed below: Mr. J. P. Reynolds Texaco Inc. 3350 Wilshire Blvd. Los Angeles, California 90005 Mr. C. V. Chatterton Standard Oil Company of California P. O. Box 7-839 Anchorage, Alaska 99501 The Superior Oil Company Mr. J. H. Cox P. O. Box 1521 Houston, Texas 77001 Mr. Ralph F. Cox Atlantic Richfield Company P. O. Box 360 Anchorage, Alaska 99501 Mr. T. J. Challoner Marathon Oil Company 550 South Flower Street Los Angeles, California 90017 Mr. W. M. Jones Pan American Petroleum Corporation Security Life Building Denver, Colorado 80202 Mr. R. M. Archambeault Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 Mr. J. B. Sleeper Skelly Oil Company P. O. Box 1650 Tulsa, Oklahoma 74102 Mr. W. C. Barton, Jr. Union Oil Company of California P. O. Box 7600 Los Angeles, California 90054 Further Affiant sayeth not. UNITED STATES OF AMERICA ) ) STATE OF ALASKA ) Nelda L. Rubert SS. On this 15th day of June, 1970, before me, a Notary Public in and for the State of Alaska, personally appeared Nelda L. Rubert, known to me to be the person whose name is subscribed to the within instrument, and acknowledged to me that she executed the-'same. IN W!TNES~ WHEREOF, I have hereunto set my hand and aff~ixed my offal seal~.$he day and year in this certificate first ab%ye;..w~.itten/-~' /--- · , /////~" ' -.. My Commission expires 5-2-74 EXHIBIT V WELL STREAM COMPOSITION TRADING EAY FIELD COOK INLET, ALASKA Component Hydrogen Sulfide Carbon Dioxide Nitrogen Methane Ethane Propane I s o -butane N -butane Iso -pentane N -pentane Hexanes Heptanes Plus C Pools 0.11 0.38 ,58.35 0.56 1.20 O. 67 1.25 1,03 0,88 2, 04 63.53 190. O0 D Pools 0.04 0.38 38.70 1.91 3.60 1.48 2.45 i. 39 1.17 4.20 44.68 100. O0 E Pools 3.38 84.76 2.02 1.88 0.64 O.86 0.48 0.43 0.96 4.59 100. O0 Hemlock Pool 1.68 24.86 2.02 3.96 1.62 2.86 1.95 1.95 4.77 54.33 100. O0 Fluid Sample Source Well .,.k -10S A -14S A -2S A -2L EXHIBIT VI RESERVOIR FLUID C, HARACTERISTICS TRADING BI~Y FIELD COOK INLET, ALASKA Formation Sampled C Pools D Pools E Pools Hemlock Pool Well Nos. Sampled Interval: Subsea Datum Measured Depth Verticle Subsea Ft A -10S 4262 -4865 -3844 to -4410 Ft -4400 A -14S 6462-7020 -5282 to -5720 -5400 A -2S 5830 -6020 -5528 to -5714 -5700 A -2L 6110 -6420 -5802 to -6210 -6100 Pressure @ Datum, Initial Temperature @ Datum PSIG 2048 oF 110© 2578 135° 2661 139° 2802 142° Bubble Point Press PSIG 1612 2502 2612 260O Differential Solution Gas Oil Ratio Field Stock Tank Liquid Gravity Differential Oil VoluIne Factor, Initial Scf/Stb 239 O API 26.7 RB/Stb !. !09 476 31.4 1.231 563 30.7 1.2628 400 31.1 1.193 Differential Oil Volume Factor, B.P. RB/Stb 1. 113 1. 232 1.2558 1.195 Oil Viscosity, Initial CP 4.24 1.24 0.71 1.60 Oil Viscosity, Bubble Point CP 3.97 -6 1.22 0.71 1.55 Average Oil COmpressibility v/v/psi x 10 5.93 8.71 .... 7.57 EXHiBIT VII SUMMARY OF ROCK PROPERTIES TRADING BAY FIELD COOK INLET, ALASKA Pools Ave. Porosity Ave. t'ermeability Ave. Water Saturation % md % B 22 25O 32 C : 19 100 35 D 21 180 30 E 20 130 31 HEMLOCK 15 30 33 These averages are based upon foot by foot log:interpretation using the density log values over the net pay inte~-wal. 1.0 0.9 0.8 0.7 ~., 0.6 mO.$ 0.3 0.2 0.1 0.0 TRADING BAY FIELD 10-19-69 PEI~iEABILITY 200.0 MILLIDARCIES EXHIBIT VIII --:l--~-:-~ -: - .--:~~ , : ..... :-:- . l-:--i-:-:-: !-t---': ..... :: ,-: ............. , --.,-+~ ..... .:. :~ ....... t~-. :t ....... ~-~ ..... : .... / :q ~ .... : .L[l_l_l_ ~ t -FI I F-:-: ' :,'---r::~:--:-:'- t-'~ ..... i:-FF-F-: ..... 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LI'' ................... i .............. iL'-: ...... :__i_:_..: ..... , ...... , :..: ............... :__i_2: .-_ :: ::: _l./ .; ::: :7: .iLL-:-:::-: :::_ ::-_ ..... ::-_ :£ :-::_ .... 21 :'£.5 :.:.: :: :_ 5.. :. :: :-_. : l :: ::! :: : : :. Z_-_ .:: :.-_ .-... :.7: .T. :l.T..l-...: .:. .... : ............ :x ........................ i ................................ : ............................ : ......... :--i-~-]-: ...... i-i .................. : ....... .: ....... l ....................... __: ..... :~._.. : ........................... : ....... 1._~_: ........ t-'-:'--:-'!-l-:-~ ......... i_.t_l ........ 1 ...... [: .................. 0.2 0.4 0.6 0.8 1.0 0.9 0.8 0.7 ~0.6 ~0.5 o.4 0.3 0.2 0.1 0.0 T~hkDING BAY FIELD 10-15-.69 PERi'[EABILITY 200.0 MILLIDARCIES EXHIBIT IX 0.2 0.4. 0.6 I~O~,.~.~LIZED OIL SATUIM, TION R.T. 112' above MLLW .......... , .................................. ................................ .......... O' Top DV Collar @ 2438' Bottom DV collar @ 4067' 4500' C Pools i 6100' D P!ols ---~~--6730' E Potls : '~ 7060' Hemlock Pool .__J 7450' 37' ~,._:~: .... 13-3/8" 61tI J-55 csg @ 1075' t, ,, )'~:~'i~ 4501" RH-2 dual. packer ::~:~ Perforated Interval }-~G 4614' - 54 ~,., 5625' Top of Liner ~.(/9}:,.:~.~9-5/8 40~ J-55 a N-80 csg ~ 5836' ~'~:: ~ Nonretr~evable packer 60~5~ J~...~ :f: q Perforated 'Interval · +. 6112 ~ - 6716 .. ~, 7" 29~J N~80 Liner 0 7506~ CASINO a CEMENTING DESIGN ExtiiBIT X k.~ix'~ ~ ~../i'.. .~'i~,,;f ~'~.~'1 ; ~.,'~ ~,~/ ~.~: ......; F I.hlAL DRAFT 6-22-70 PROPOSED TRADING BAY FIELD RULES RULE 1. Area Where Field Rules Are Applicable The Area described as follows will be ~ RI-~?~W~ S,M, sect I'6~- Section 4.' E½, SW¼, S-½-NW¼, NE¼NW¼ Sect ion 5: E½SE¼, SW¼SE¼ Section 8: NE¼ Sect ion 9: N½ TION, R13W, S.M. Section 34: SW¼ RULE 2. Definition of Pools (a) The Trading Bay Middle Kenai "B" 0il Pools are defined as the intervals which correlate with the interval 1,270' to 5,O10', drilled depth, in the Union Oil Company of California Trading Bay State A-17 well. (b) The Trading Bay Middle Kenai "C" Oi.1 Pools are defined as the intervais which correlaLe wi i:h Lhe interval 4,58:9' i:o 6,225:, drilled depth, in the Union 0il Company of California Trading Bay State A-14 well. .(c) The Trading Bay Middle Kenai "D" Oil Pools are defined as the intervals which correlate with the interval 6,225' to 7,025', drilled depth, in the Union Oil Company of California Trading Bay State A-14 well. (d) The Trading Bay Middle Kenai "E" Oil Pools are defined as the ,. intervals which correlate with the interval 7,025' to 7,425', drilled depth, in the Union Oil Company of California Trading Bay State A-14 well. (e) The Trading Bay Hemlock Oil Pool is defined as the intervals which correlate with the interval 5,380' to 5,720' in the Union Oil Company of California Trading ~ay #1-A well. ! , , ,PAGE 2 RULE 3. Commingling Commingling in the well bore of production from the Middle Kenai "D" RULE 4. and Middle Kenai I'E" Oil Pools is allowed. Spacing Acreage (a) Not more than four (4) completed oil wells shall be al lowed in each of the defined pools on any governmental quarter section. .., (b) Not more than one (1) gas well shall be allowed ih~ each of the defined pools on any governmental quarter section' RULE 5., 'Spacing Footage · ~ Oil or gas wel~mayFcompleted closer than 500. feet to any property line of~a. Fase\./ _ except that n° oil well 'Shall be completed closer than 5OOf/Cf~t from a lease line where ownership changes .and no gas wel/1//shalk~ be//~ completed clOser than 1,000 feet from · a lease linde/where own~krship changes. ' ' No oil well in any of th~ defined pools shall be completed closer than 660 feet, true measured distance, to any other oil well in the ,.~ same pools. RULE 6. No gas well shall be completed closer than 1,000 feet, true measured distance, to any other gas well in the same defined pools. £asing and Cementing Requirements. (a) Surface casing shall be landed at'not less than 1,000 feet and cement shall be circulated to the sea floor. Casing and control equipment shall be hydrostatically tested to not less than 1,O00 pounds per square inch pressure before drilling the shoe. (b) Production casing shall be landed through the completion zone and cement shall cover and extend to at least 500 feet above each potentially productive sand interval. The use of multi-stage cementing procedures shall be permitted. Alternatively, a casing string shall be adequately cemented at an intermediate point and a liner landed ? ~ . ?.~GE 3 RULE 7. RULE 8. RULE 9. through the completion zone. If a liner is run, the annular space behind the 1 iner shal 1 be fi 1 led wi th cement to at least 100 feet above the casing shoe or the top of the liner sl~all be , squeezed with sufficient cement to provide at least 100 feet of cement between the liner and' casing annulus. Cement must cover all potentially productive intervals behind the liner. Casing and well head equipment shall be hydrostatically tested to not less . than 2,000 pounds per square inch pressure. Bottom Hole Pressure Surveys. A key well'bottom hole pressure survey shall be conducted in each of the defined pools dpon Committee request; provided, however, such surveys shall not b'e required more often than twice in any calendar year. The time and length of survey, nUmber and locations of wells, datum and other details will be determined by the Committee upon con'sultation wi th the Operators. Pressure Maintenance P~roje_c_t_s. The injection of water for the purpose of pressure maintenance, secondary recovery o.r, of conducting injectivity tests is permitted in the Trading Bay Middle Kenai "C" and "D" Oil Pools and the Trading Bay Hemlock Oil Pool. A progress report detailing project operations and results shall be §ubmitted to the Committee upon request which shall not be more than twice in any calendar year. Administrative Approval. Upon request of the applicant and a showing that any affected parties have been notified of 'such request the Committee may authorize the drilling of any well at any location, the termination or suspension of the pressure maintenance projects, the conversion of any well, or any - other operation reasonably designed to further 'the purposes of the projects. .... _ ~Page 4 RULE 10. Other Conservation Orders Conservation Order //57 as amended by Conservation order #69 is revoked. All other conservation orders affecting the Trading Bay Field to include Conservation Order #69 shall remain in full force and ~ffect, except as m~iifi~i her~l~y, RULE 11. Except ions A1 lowed. All wells previously completed in accordance with then existing conservation orders, regulations or statutes that may be in conflict with these rules are hereby allowed permanent exceptions to such portions of these rules with which any such well may be in conflict. INTRODUCTION OF TESTI~IONY TO SUPPORT TI.IE APPLICATION FOR REDEFINITION OF MIDDLF KENAI POOLS AND PRESSURE MAINTENANCE PROJECTS TRADING BAY FIELD CONSERVATION FILE NUMBER 93 PRESENTED BY WADE S. I~'IcALISTER, LANDMAN UNION OIL COMPANY OF CALIFORNIA AT A PUBLIC HEARING JUNE 29, 19 70 IN ANCHORAGE, ALASKA Good morning gentlemen. I am Wade blcAlister, Landman in the Anchorage District of Union Oil Company of California. Development of the Trading Bay Field has provided information making it possible to divide the previously defined Middle Kenai Oil Pools into four groups of pools, the Trading Bay Middle Kenai "B", "C", "D" and "E" Oil Pools,. and to establish pressure maintenance projects in the previously defined Hemlock Oil Pool and the redefined Middle Kenai "C" and "D" Oil Pools. In the interest of economy of time, I request the application for redefinition of Middle Kenai Pools and for pressure maintenance projects, dated June ~2, 1970, along with Exhibts "A" through "G", .be entered, into the record of this hearing without reading. Union now presents for your consideration the following p'reF o s e d C e ~s e':rv at i on 0','_'~ e r: RULE 1. RULE 2. PROPOSED TRADING BAY FIELD RULES Area }~]tere Field Rules are Applicable The area described as follows will be affected by these rules: T9N, R13W, S.bl. Section 3: Section 4: E~, SW~-~, S Section S: E!zSE[~, SW!~SE~ Section 8: NE~.z Section 9: T10N, R1SW, S.M. Section 33: S!:.~SE~, NE~iSE,~-4 Section 34: Definition of Pools (a) The Trading Bay Middle Kenai "B" Oil Pools are defined as the intervals which correlate wi. th the interval 1,270' to 5,010', drilled depth, in the Union Oil Company of Cal. ifornia Trading Bay State A-17 well. RULE 3. RULE 4. RULE S. (b) The Trading Bay bliddle Kenai "C" Oil Pools are defined as the intervals which correlate with the interval 4,S8S' to 6,22S', drilled depth, in the Union Oil Company of California Trading Bay State A-14 well. (c) ?lqe Trading Bay Middle Kenai "D" Oil Pools are defined as the intervals which correlate with the interval 6,22S' to 7,02S', drilled depth, in the tJn:i, on Oil Company of California Trading Bay State A-14 well. (d) 'P~e Trading Bay bliddle Kenai "E" Oil Pools are defined as the intervals which correlate with the interval. 7,02S' to 7,42S', drilled depth, in, the Union Oil Company of California Trading Bay State A-14 well. (u) 'i]~ Tz'ad.[~g B~,y i'-'i~mJ, uck O:i Pool .i.s d~:fJ.~d a.~ 'tl~ .l~Lervais which correlate with the interval 5,380' to 5,720' in the Union 0il Company of California Trading Bay #1-A well. Commingling Commingling in the well bore of production from the Middle Kenai "D" and bliddle Kenai "E" Oil Pools is allowed. ~acing Acreage (a) Not more than four (4) completed oil wells shall be allowed in each of the defined pools on any governmental quarter section. (b) Not more than one (1) gas well sba1.1, be allowed in each of the defined pools on any governmental quarter section. ~acing Footage fa) No oil well in any of the defined pools shall be completed closer than 660 feet, true measured distance, to any other oil well in the same pools. RULE 6. RULE 7. (b) No gas well shall be completed closer than 1,000 feet, true measured distance, to any other gas well in the same defined' pools. Casing and Cementing Requirements _ (a) Surface casing shall be landed at not less than 1,000 feet and cement shall be circulated to the sea floor. Casing and control equipment shall be hydrostatically tested to not less than 1,000 pounds per square inch pressure before drilling the shoe. (b) Production casing shall be landed through the completion zone and cement shall cover and extend to at least 500 feet above each potentially productive sand lnterval. ~lxe use of multi-stage cementing procedures shall be permitted. Alternatively, a casing string shall be adequately cemented at an intermediate point and a liner landed through the completion zone. If a liner is run, the annular' space behind the liner shall be filled with cement to at least 100 feet above the casing shoe or the top of the liner shall be squeezed with sufficient cement to provide at least 100 feet of cement between the liner and casing annulus. Cement must cover all potentially productive intervals behind the liner. Casing and well head equipment shall be 'hydrostatically tested to not less than 2,000 pounds per square inch pressure. Bottom ~tole Pressure Surveys A key well bottom hole pressure survey sha].l be conducted in each of the defined pools upon Conunittee request; provided, however, such surveys shall not be required more often than twice in any calendar year. ~]~e time and length of survey, number and locations of wells, datum and other details will be determined by the Commit.tee upon consultation with the Operators. RULE 8. Pressure ~.laintenance Projects The injection of water for the purpose of pressure maintenance, secondary recovery or of conducting injectivity tests is permitted in the Trading Bay ~,Iiddle Kenai "C" and "D" Oil Pools and the Trading Bay Hemlock Oil Pool. A progress report detailing project operations and results shall be submitted to the Committee upon request which shall not be more than twice in any calendar year. RULE 9. Administrative Approval Upon request of the applicant and'a showing that any affected parties have been notified of such request the Co~m~ittee may authorize the drilling of any well at any location, the termination or suspension of the pressure maintenance projects, the conversion of any well, or any other operation reasonably designed to further the purpose of the projects. RULE 10. Other Conservation Orders Conservation Order #57 as amended by Conservation Order #69 is revoked., All other Conservation orders affecting the Trading Bay Field to include Conservation Order #69 shall remain in full force and effect, except as modified hereby. RULE 11. Ex. ceptions Allowed All wells previously completed in accordance with then existing conservation orders, regulations or statutes that may be in confl, ict with these rules are hereby allowed permanent exceptions to such portions of these rules with which any such well may be in conflict. A comparison of the definition of the Middle Kenai "B" Oil Pools in Rule 2(a) with the definition proposed in the application of June '12,' 1970 will reveal the top of these Pools has been changed. It is requested' you disregard the definition stated in the application. Geologist. James E. Scott, Jr. and Reservoir Engineer V. A. Isaacs, Jr. will present geologic and engineering testimony to support the proposed definitions of the Middle Kenai "B'', "C", "D" and "E" Oil Pools and the pressure maintenance projects for the "C", "D" and Hemlock Pools. Testimony will also be given to justify commingling production from the "D" and "E" Pools and to show that the casing and cementing requirements will adequately protect the well bore and prevent communication between pools. I will read the qualifications of },Ir. Scott and Mr. Isaacs into the record since neither have been previously established as expert witnesses by the Conservation Co~ittee. ~..{r. Scott attended the University of Houston and received a Bac}~elor of Science ~e~r~e in geo!o,~~,~ {,~ August, 1964 He has since taken graduate courses in geology at the University of .~ Califo~rnia at Santa Barbara. Mr. 'Scott has attended company sponsored schools in geology, geophysics and reservoir engineering, as well as industry sponsored seminars in well log interpretation and core analysis. He is a member of the American Association of Petroleum Geologists, the Society of Petroleum Engineers of the A. I. M. E., the Alaska Geological Society and the Geophysical Society of Alaska. Application is pending for registration as a professional geologist in the State of California. He h~ six years of geological experience in the oil indhstry, all with Union Oil Company of California. From August, 1964 to May, 1967, he worked in exploration and development geology in California. Since transfer to Alaska in May, 1967, he has been concerned with exploration of the Cook Inlet basin and development of several oil and gas fields in the oil province. Two years of this period were directly involved with primary development of the Trading Bay field· Mr. Isaacs graduated from Colorado School of ~ines in 1964 with the degree of Petroleum Engineer. Since graduation he has done graduate work at the University of Southern California and at the University of Alaska where he is currently working on a Master of Science degree in Engineering Management. He has attended industry and company sponsored schools on gas lift design and reservoir modeling. Mr. Isaacs is an active member in the Society of Petroleum Engineers of A. I. M. E. After graduation in 1964. Mr. Isaacs worked for the California Company as a . dril. ling engineer in the Gulf of Mexico for one year. Following two years in the military he went to work for Union Oil Company of California as a reservoir engineer performing primary and secondary development work in four fields in Union's Southern District in Santa Fe Springs, California. Mr. Isaacs came to Alaska as the reservoir engineer of Trading Bay Field. In this capacity he has been involved with the primary and secondary development of this field. I r. equest these men be established as expert witnesses by the Conservation Committee and be sworn for this hearing. (Oath Administered by Committee) Mr. Scott, were the Exhibits indentifed by Roman numerals I through IV, to which you will refer during the course of your testimony, prepared either by you · or under your supervision? (Answer) Mr. Isaacs, were the Exhibits identifed by Roman numerals V through X, to which you will refer during the course of y. our testimony, prepared either by you or under your supervision? Mr. Ghairman, I request the Exhibits identi£ied by Roman numerals I through X be entered into the record o£ this hearin§. To expedite the hearing, I also request questionin~ o£ the witnesses be delayed until the conclusion o£ the presentation. Mr. Scott will now present the §eo].ogical testimony. GEOLOG lC TESTIMONY TO SUPPORT TIlE APPLICATION FOR POOL DEFINITION AND PRESSURE MAINTENANCE PROJECTS MIDDLE KENAI OIL POOLS TRADING BAY FIELD CONSERVATION FILE NUMBER 93 PRESENTED BY' JIM E. SCOTT~ GEOLOGIST UNION OIL COMPANY OF CALIFORNIA AT A PUBLIC IiEARING, JUNE 29, 1970 IN ANCHORAGE, ALASKA GEOLOG lC TESTIMONY The following geologic testimony is presented to support the definition of the Trading Bay Middle Kenai "B", "C", "D", and "E" Oil Pools and to support the Middle Kenai "C" and "D", and Hemlock pressure maintenance projects. Erdaibit I, a structure map contoured on a representative sand within the Middle Kenai "D" Oil Pools in the Trading Bay field area, shows the area of field rule application. Scale of the exhibit is 1 inch equals 500 feet. Contour interval is 100 feet. This exhibit shows the 19 wells drilled from the Union operated Trading Bay field Monopod platform, the one well currently drilling, and the 3 non-platform wells in tl~e field area. All Monopod wells were directionally drilled. The Trading Bay field structure, as defined, by drillin~ to date, is a faulted, asymmetrical anticline. Ail wells drilled from the Monopod platform have encountered faults. Faulting separates the field into six productive blocks. Five of the blocks (IA, IB, liB, IliA, IVA) contribute a minor amount of production; the remaining IIA fault block contributes approximately 85% of total field production. The IVA block is a subthrust block beneath the Trading Bay fault complex. The anticlinal axis trends N 53°E in the north part of the field to N 25°E in the south part of the field at Middle Kenai "D" depth. A westerly shift in the. anticlinal axis occurs with depth. The Trading Bay anticline is bounded to the east by the Trading Bay fault complex and to the west by the West Tr.ading Bay fault. Flank dips in the northerly part of the field are 20° to 30° on the west flank and 30° on the east flank. In the southern part of the field, flank dips are 12° to 40° on the east and 10° to 14° on t.he west flank. Exhibit II is a structural cross section A-A' through the Trading Bay field. Shown on this exhibit is the previously mentioned IIA fault block. Section A-A' also shows the relationship of the gently dipping southerly IIA block on the left, to the steep flanked central Ilia block, and continues along the axis of the north fault block IB, to the right and into the IC block. This exhibit shows the fault related structural complexities which occur in the Trading Bay field. Ex]~ibit III is a composite electric log of the Union, Trading Bay State A-14, A-17 and Trading Bay 1-A wells. Vertical scale is 1 inch equals 50 feet. This exhibit illustrates the productive and potentially productive oil sands and conglomerates of the ~iddle Ground Shoal member of the ~iddle Kenai Tyonek formation. Exl~ibit III also sl~ows the previously defined Hemlock Oil Pool. There are 36 hydrocarbon bearing sands and conglomerates in the field within a vertical interval of approximately 5000 feet. Production from the Middle Kenai occurs from 2489 feet subsea in the Ilia block, the most shallow completion, to 8354 feet subsea in the IVA block, the deepest completion. Production from the Hemlock occurs from 5506 feet subsea in the IA block to 6225 feet' subsea in the IIA block, to 8478 feet subsea in the IVA block. As defined in 'the proposed field rules, stratigraphic limits of the Trading Bay Middle Kenai 'tB" Oil Pools correlate wit~°the interval 1270 feet to 5010 feet, drilled depth, in the directed well Trading Bay State A-17. ~]~e stratigraphic limits of the Trading Bay ~4iddle Kenai 'tC", "D", and "E'" Oil Pools in the directionally drilled well Trading Bay State A-14, shown on Exhibit III, occur as follows: "C" Oil Pools "D" Oil Pools "E" Oil Pools 4585 feet , 6225 feet 6225 feet - 7025 feet 7025 feet -7425 feet Also shown on this exhibit is the Hemlock Oil Pool, previously defined in Conservation Order #57 as "that interval which correlates with the interval 5380 feet to 5720 feet in the Union Oil Company of California 1-A Trading Bay well." The Middle Kenai Oil Pools are defined based on groupings of sands and conglomerates according to log characteristics, rock and fluid properties~ similarity of aerial extent of hydrocarbon accumulations, and the proper mechanical separation of completions to optimize primary oil production and pressure maintenance for secondary oil recovery. For example, the "B" Pools oil gravity differs markedly from the underlying "C" Pools; the "C" Pools are generally composed of thin sands, in contrast to the thick, blocky sands of the "D" Pools; the "D" area of oil accumulation is considerably more extensive than the "E" Pools below. Exh~.bi.t I'V slhows b structure maps conr, oured on sand Tops represeu'~a'~ive of the Middle Kenai "B", "C", "D", and "E" Oil Pools and the Hemlock Oil Pool in the Trading Bay field. The scale of this exhibit is 1 inch equals 500 feet. Contour interval is 100 feet. This exhibit shows the structural complexities in the field. Note the change with depth in the size of fault blocks such as the IliA block. The first map on the left is contoured on top of the 44-7 sand within the Middle Kenai "B" Oil Pools. The downdip limit of accumulation for these pools occurs at approximately 3863 feet subsea in fault block IIA. There are currently 2 completions (A-1 and A-9) in these pools, both located in the central IliA fault block. The Middle Kenai "B" Oil Pools shown on the composite log, Exhibit are composed of massive, loose to firm~ silty, pebbly sands and sandy conglomerates with interbedded siltstones and coals. The sands and conglomerates vary in thickness from 50 feet to' 125 feet. The "B" stratigraphic interval is characteristically a series of thick sands~ thick coals and thick siltstones. Oil gravity of the "B" Oil Pools is characteristically different from the oil gravity of the underlying "C" Oil Pools. "B''' Pools oil gravity ranges from 20.0° to 24.1° AP1. Gas caps have been tested in two sands in the IIA fault block. Analyses of 6 conventional full diameter cores from wells Trading Bay l-A, Trading Bay State A-4 and A-16 showed a porosity range of 19.2% to 32.1% and a permeability range of 8 md to 1650 md. LOg analyses of 15 wells indicates .an average porosity of 22% and an average permeability of 250 md. The un- consolidated nature of "B" sands is evidenced by sand fill on drill stem tests in the Trading Bay State A-7 well. The second map shown on E×hibit IV is a structure map contoured on top o~ the ~-7 sand ±n the Middle Kenai ~C~ Oil Pools. The ::C:: Pools downdip accumulation limit occurs at approximately 5090 feet subsea in fault block IIA. There are presently 5 completions~ the Trading Bay State A-i, A-5~ A-7, A-10~ and A-16, in the "C", 3 of which are currently producing. The Middle Kenai "C" Oil Pools shown on the composite log, Exhibit III, are primarily composed of loose to friable~ pebbly, silty sands and sandy conglomerates with interbedded siltstones and coals. The "C" Pools are stratigraphicall¥ separated from the overlying "B" Pools by a 20 foot siltstone and a 10 foot coal bed. The "C" interval of pools is generally a series of thin sands~ thin coals~ and thin siltstones. Reservoir characteristics define the lower limit of the "C" Oil Pools. Analyses of 3 full diameter conventional cores from wells Trading Bay State A-7 and A-17 shows a porosity range of 17.4% to 28.7% and a permeability range o~ 10 md to 2520 md. Average porosity from log analyses of 15 wells is 19% and average permeability is 100 md. "C" Pools oil gravity ranges from 26.0° to 27.0° AP1. No gas caps have been encountered in the IIA fault block. The third map shown on Exhibit IV is a structure map contoured on top of the 57-2 sand in the lower part of the Middle Kenai "D" Oil Pools. The "D" Pools downdip accumulation limit occurs at or below 5822 feet subsea in the IIA block to 7890 feet subsea in the IVA block. There are currently 10 completions in the "D" Pools, the Trading Bay State A-5 Redrill, A-7, A-8, A-10, A-il, A-13~ A-14, A-17~ A-18, and A-19 wells. Six of these completions are currently producing and water is being injected into A-5 Redrill. The "D" Oil Pools, as shown on the composite log, Exhibit III, are composed of numerous loose to firm, massive sands and sandy conglomerates, thin silt. stones and coals. .These pools are characteristically conglomeratic. The sands have pebble beds with little or no continuity. Localized sand stringers occur' w~t~,~ the conglomerates. '~he ~D~ PooLS sands ar~e stratigraph- ically separated from the "C" Pools by a siltstone bed up to 60 feet thick. Analyses of 2 conventional full diamter cores from the Trading Bay State A-16 well have shown a porosity range from 16.6% to 28.7% and a permeability range from 15 md to 1260 md. Log analyses from 15 wells indicates an average porosity of 21% and an average permeability of 180 md. "D" Pools oil gravity ranges from 29.8° to 31.4~ AP1. The fourth map shown on Exhibit IV is a structure map contoured on the 58-7 sand near the top of the Middle Kenai "E" Oil Pools. The downdip limit of accmnulation in the "E" Pools occurs at approximately 5927 feet subsea in fault block IIA to 8304 feet subsea in fault block IVA. There are currently 4 completions in the "E" Pools, Trading Bay State A-2, A-8, A-13, and A-18 wells. The "E" Oil Pools shown on the composite log, Exhibit III~ are composed of loose to firm sands and conglomerates with interbedded siltstones and coals. Interbedding of sands and conglomerates is common in these pools. The "E" Pools are separated from the overlying "D" Pools by a 20 foot si ltstone bed and from the Hemlock Pool below by a 15 foot to 50 foot siltstone bed. Analysis of one full diameter conventional core in the Trading Bay State A-2 well yielded porosity values ranging from 10.6% to 21.4% and permeability values ranging from 2 md to 77 md. These values are based on limited core analysis data. Average porosity indicated from log analyses of 15 wells is 20% and average permeability is 130 md. "E" Pools oil gravity ranges from 30° to 49° AP1, establishing definite fluid differences. Additional evidence for separation of the "E" Pools is apparent from the existence of primary gas caps in these reservoirs. The last map shown on Exhibit IV is a structure map contoured on top of the Hemlock Oil Pool. The downdip limit of accumulation occurs at 6225 feet subs~a in [}~e iiA block Lo o,+~o f~et ~uu~ in ............ ~- ~ currently 7 producing comple~ions in ~he Hemlock Pool, ~he Trading Bay S~a~e A-2~ A-6, A-13, A-i~, A-1S, A-16, and A-18 wells. ~a~er is curzen~ly being injected in~o Tzading Bay S~a~e A-17. The Hemlock~ as shown on Exhibi~ III, is a massive, loose ~o fizm~ sandy, pebble ~o cobble conglomerate wi~h intezbedded ~hin sil~s~ones and numerous sandstone s~zingers. The co,on occurzence of coal beds, as in ~he Middle Kenai,-is noticeably absen~ in ~he Hemlock. The Hemlock is separated fzom ~he "E" Pools above by a 1S foot ~o S0 foo~ sil~s~one bed and ovezlies a ~hick, ~uffaceous sil~s~one of ~he Wes~ Fozeland fozma~ion. Analyses of 6 full diameter conventional cozes in ~he Tzading Bay S~a~e A~2, A~7~ A-8~ A-10~ A-13~ and A-i~ wells yielded porosity values ranging from 1.8~ ~o 2~.7~ and permeability values zanging fzom 0.1 md ~o ~71 md. Log analyses of 1S wells indicated an average pozosi~y of 15~ and an average permeability of 30 md. Hemlock oil gravity zanges from 27.3~ ~o 31.8~ API. From this geological testimony it is apparent that the Trading Bay Middle Kenai "B", "C", "D", and "E" Oil Pools and the Hemlock Oil Pool are in fact separate and distinct. Stratigraphic separation, variable lithologic characteristics, accumulation limit differences, and reservoir characteristic variations support the applicant's request to establish separate pools. Definition of pools, as proposed, will provide the flexibility necessary to optimize development of all pools and will allow effective pressure maintenance of the Middle Kenai "C", "D", and Hemlock Pools. The extent of accumulation, the confinement~ of reservoirs and the generally continuous nature of the sands within the Middle Kenai "C" and "D" Pools and the Hemlock Pool show that the IIA fault block is geologically suitable for successful pressure maintenance projects. ENGINEERING TESTIMONY TO SUPPORT THE APPLICATION FOR POOL DEFINITION AND PRESSURE MAINTENANCE PROJECTS MIDDLE KENAI OIL POOLS TRADING BAY FIELD CONSERVATION FILE NUMBER 93 PRESENTED BY' JIM E. SCOTT, GEOLOGIST UNION OIL COMPANY OF CALIFORNIA AT A PUBLIC HEARING, JUNE 29, 1970 IN ' ANCHORAGE, ALASKA ENGINEERING TESTIMONY This engineering testimony, will support the pool definitions of th.e Middle Kenai "B", "C", "D", and '"E" Oil Pools and the pressure maintenance projects in the Middle Kenaf '"C", ",D", and He.mlock Oil Pools currently, proposed in Fault Block IIA, Trading Bay~ field. These projects may, be expanded to other fault blocks in. tke future., The reservoirs in Fault Block ~IIA produce under a solution gas~drive mechanism. To date, no aqui'fer re. spon.se h.as been observed and none anticipated. In order to insure, the. recovel;p of a reasonable percent, age of the oil in place, reservoir pre, ssure must b~ mai'nta, in,ed artificially.. This testimony, will describe tl~.,e fluid properti, es of the "C",;,, "DU~. "E", and Hemlock Pools, as. well as the rock properties of the "B'~'',, "D", "E", and Hemlock Pools and s. kow that pressure maintenance h}~. w, atar injection is expected to recover a. dditiona~l oil from the "C",, ".D'.'", and Hemlock Pools. FLUID PROPERTIES , . Exhibit V is a comparison of the oil compos,itions from the "C" "E", and Hemlock reservoi~rs. These samples were obtained at the surface downstream of the separator from th~ indicated wells. All analxses were made from recombined surface s~ples b~'co~erc~.al laboratories, differ~ces in mol percent between the pools of the methanes and the hepr tanes plus in each sample are apparent~ The mol percent of the methanes ranges from 24.86 to 84.76 percent, while the mol percent of the h. eptanes plus ranges from 4.59 to 63.53 percent.~ Mol percent values for Pools are noticeably different due to the well stream fluid being mostly gas. Variation in components occurs in all pools. Exhibit VI shows a comparison bet~een pressure volume temperature laboratory analyses of these samples. In all cases the analyses indicate the fluids are slightly undersaturated. The Hemlock data in Exhibit VI differs from that given in the previous testimony for the Alaska Oil & Gas Committee Hearing, February 7, 1968, Beneficial Use of Gas, Trading Bay Field. Latest field data substantiates this change in recombination, from a solution gas-oil ratio of 249 standard cubic feet per.barrel used for that hearing to 400 standard cubic feet per barrel, which in turn increased the saturation pressure from 1622 psig to 2600 psig. The production of gas in TBS A-2 (S) is evidence of a gas cap in the "E" Pools. This informa- tion is not consistent with the laboratory fluid analysis which shows the "E" Pools to be slightly undersaturated. Therefore, an effort is currently under way to obtain another "E" Pool fluid analysis. Exhibit VI also shows differences in oil viscosities, oil formation volume factors, AP1 gravities, and compressibilities in each of the pools. Crude oil viscosities are particularly important as they directly affect the ability of water to push oil through the reservoir. Large variations in crude viscosity of various pools in the Middle Kenai~ are detrimental to vertical conformance, and hence, oil recovery. The p~roposed pool defini- tions minimize these variations. The data presented in Ex~tibits V and VI establish the difference in pressure-volume-temperature properties for the "C", "D", "E", and Hemlock res ervo ir s. ROCK PROPERTIES Porosity Various combinations of logs were analyzed to determine the most ac- curate porosity values for the "B", "C", "D", "E", and Hemlock Pools through correlation with full diameter core analysis. Porosity, permeability and water saturation values derived from the density log approximates these core values. To obtain average porosity, foot by foot analysis of the pay interval was determined from the logs of 15 wells. This technique shows in Exhibit VII the average porosity values range.from 15% in the Hemlock Pool to 22% in the "B" Pools. Permeabi !ity Exhibit VII shows the average permeability for each of the defined oil pools based upon the density log porosity values over the net pay interval of each pool. Average log pe~Tneability values range from 30 md in t'he Hemlock Pool to 250 md in the '~B" Pools. ~ Water Saturat ion The average water saturation values shown in Exhibit VII were computed from the density log porosity of the 15 wells in Trading Bay field. They range from 30% in the "D" Pools to 35% in the "C" Pools. Special Core Analysis Exhibits. VIII and IX are examples of the normalized relative gas and water permeability curves. The special analyses of cores from wells TBS A-2, A-8, A-13, A-16, and A-17 were used to arrive at this base set of CUrVeS. Special core analyses indicated that all cores were sensitive to fresh water, These same cores were tested for sensitivity with salt water of comparable salinity to Cook Inlet water and the analysis revealed that filtered and treated Cook Inlet water could be used for injection with a minimum effect on formation productivity. RESERVOIR PERFOK.~.IANCE To estimate performance of the proposed peripheral injection pattern, a mathematical reservoir model was used. This was the McCord Multi-layer 600 point, two dimensional, three phase, unsteady-state reservoir simulator with the layers being the "C", "D", "E", and Hemlock Pools. This study was composed of two parts: the history match and the perfor- mance prediction. To obtain the history match, fluid and rock properties were input in conjunction with individual well oil withdrawals. Porosity foot maps, permeability foot ma,os, and normalized .~as snd water relative permeability curves were digitized for input into the model. A pressure and GOR match was then obtained on an individual well basis. This match was based upon well data ~obtained from key well pressure build-up analyses and static pressure recordings. Various injection techniques were investigated for the prediction mode of this ~model study. The injection portion of this study was limited to the "D" and Hemlock Pools due to the lack of sufficient primary performance data from the "C" and "E" Pools. Current plans, however, do include injec- tion into the "C" Pools but it has not been modeled to date. Pressure maintenance in the '~E" Pools has not been resolved at this point. Recom- pletion of TBS A-8 has shown the existence of an oil accumulation below a gas cap where previous interpretation indicated only a gas pool. The "E" Pools have much less aerial extent than the adjacent pools and, due to the limited oil in place, additional drilling into this reservoir is not practical. Also, it is mechanically impractical to triple complete these directional wells. Consequently, to insure development of the "E" Pools it becomes necessary to commingle its production with the production from the "D" Pools. These pools are separated mechanically by cement. The production string will have the versatility of producing either of these pools in order to allocate production based upon individual tests. In estimating future development, plans were made based upon the pro- posed pool definitions. Parameters involved in these predictions were productivity and injectivity index, tubing ~ize, artificial lift calcula- tions, and calculated reservoir pressures. PROPOSED CASING & CEMENTING PROGRAM The casing and cementing record of TBS A-SRD in Exhibit X is shown as an example of the proposed program for injectors. This plan will essen- tially be followed in other injectors subject to variations required by depth differences in particular wells. To maintain segregation between pools, selective cement squeezing is proposed where deemed necessary. To insure that no communication exists up the hole, cement will be staged to extend to at least S00 feet above each potentially productive · sand. If a liner is run as in TBS A-SRD, cement will be returned or squeezed above the liner lap to include at least 100 feet of cement between the liner and casing annulus. The cement on the surface string will be returned to surface. The production casing above the injection packer will be .pressure tested with treated water to 2000 ps. ig before final in-. stallation of the injection tubing. S SUmmARY Engineering studies have used the latest techniques to determine the most effective methods to maximize oil recovery from the Trading Bay field. These studies have established the following: 1) Mechanical separation of the "B", "C", "D", "E", and Hemlock Pools is necessary. These are separate and distinct reservoirs and without this separation proper reservoir control with primary and pressure maintenance would not be possible. 2) The reservoirs in Fault Block I IA produce under a solution gas-drive mechanism and without pressure maintenance, oil productioi~ rates will decline rapidly and GOR's will increase. 3)Ultimate recovery by pressure depletion is expected to result in 14% recovery of initial stock tank oil in place within the "C", "D", and Hemlock Oil Pools. 4) By pressure maintenance with water injection, production from the "C", "D", and Hemlock Oil Pools is expected to increase. This ~ill maximize ultimate recovery at approximately 30% in the "D" Pools and 20% in the Hemlock Pool. The "C" and "E" Pools are undergoing additional primary development to determine their potential. 5) Total injection for Fault Block IIA, Trading ~ay field should equal 30,000 BWPD. Of this, 700.0 BWPD has been allocated to the "C" Pools, 20,000 BWPD for the "D" Pools, and 3000 BWPD for the Hemlock Pool. Based on injectivity tests in TBS A-gL and A.-17L, injection rates of from 5000-6000 BWPD in the. "D" Pools and 3000 BWPD in tt~e Hemlock Pool can be expected. It is anticipated that four injectors are necessary in the "D" Pools and three injectors in the Hemlock Pool. 6) Peripheral injection into the "D" and Hemlock Pools, and most likely the "C" Pools, will yield the ultimate recovery with maxi- mum producing rates; however, additional drilling is now in progress which could cause some alteration in this plan. CONCLUS IONS To recover the maximum oil and prevent waste of a natural resource, the following proposals should be approved: 1) Separate the "B", "C", "D", "E", and Hemlock Oil Pools to insure proper continued development of these reservoirs. 2) Commence pressure maintenance in the "C", "D", and Hemlock reser- voirs of the Fault Block IIA as soon as possible. 3) Allow commingling of production through common tubing from the "D" and "E" Pools. 4) ~lonitor closely individual pool injection, production rates and performance of the projects. 5) Establish field rules w}~ich will allow administrative approval 5y Conservation Committee at Operator'~s request for operational changes required for the pressure maintenance projects. 7