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Home My WebLink AboutAIO 027 e e Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. A 1. 0 () d. / Order File Identifier Organizing (done) o Two-sided 111111111111111111I o Rescan Needed 1111111111111111111 RESCAN ~olor Items: o Greyscale Items: DIGITAL DATA OVERSIZED (Scannable) D Maps: D Other Items Scannable by a Large Scanner D Diskettes, No. D Other, No/Type: D Poor Quality Originals: OVERSIZED (Non-Scannable) D Other: o Logs of various kinds: NOTES: o Other:: BY: ~ Date 7/1;}-. 0 ~ /s/ vwf 11111111111111 ,,11\ V\4f Project Proofing BY: ~ , Date 1. 1,:)- () ~ /s/ Scanning Preparation BY: C Maria ) x 30 = + Date 7, 1,*-/0 t, = TOTAL PAGES ~~ (Count does not i~~~ude cover sh!et) ý\1 f Production Scanning Stage 1 Page Count from Scanned File: q l.f- (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: V YES BY: ~ Date:7/,a-'ofo Stage 1 If NO in stage 1, page(s) discrepancies were found: YES 11111111I11111 11111 NO /s/ ~f NO BY: Maria Date: /s/ 11/111111111111111I Scanning is complete at this point unless rescanning is required. ReScanned 1111111111111111111 BY: Maria Date: 151 Comments about this file: Quality Checked 1111111111111111111 10/6/2005 Orders File Cover Page. doc . . Index Area Injection Order 27 Colville River Field Nanuq-Kuparuk Oil Pool 1. September 15, 2005 ConocoPhillips Alaska Inc application for a Area Injection Order 2. September 27,2005 Notice of Hearing, Affidavit of publication, e-mail and mailing list 3. November 7, 2005 Questions and Answers from hearing 4. --------------------- Various E-mail's 5. March 28,2007 CPA request for an Admin Approval AIO 27-001 6. March 29,2007 Alpine Prod Wtr Compatibility Report Index Area Injection Order 27 · ~ STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF ) CONOCO-PHILLIPS ALASKA ) INC. for an order authorizing ) underground injection of Ouids for ) enhanced oil recovery in the Nanuq- ) Kuparuk Oil Pool, Colville River ) Unit, North Slope, Alaska ) Area Injection Order No. 27 Colville River Field Colville River Unit Nanuq-Kuparuk Oil Pool February 16,2006 IT APPEARING THAT: 1. By letter and application filed September 15, 2005, ConocoPhillips ~Alaska, Inc. ("ConocoPhillips") in its capacity as Unit Operator of the Colville River Unit requested an order ftom the Commission authorizing the injection of fluids for enhanced oil recovery in the Nanuq-Kuparuk Oil Pool. 2. Notice of a public hearing was published in the Anchorage Daily News on September 27, 2005. 3. No protests, requests for hearing, or comments were submitted to the Conunission during the 3D-day public comment period. 4. The Conunission vacated the public hearing on October 28, 2005. 5. The Commission requested additional information ITom ConocoPhillips on October 28,2005, January 10, 2006 and January 11, 2006. Supplemental information was received ftom ConocoPhillips on November 2,2005, January 10, 2006 and January 12,2006. FINDINGS: 1. Operator: ConocoPhillips is the operator of the property in the area proposed for development. ConocoPhillips uses the name Nanuq-Kuparuk in reference to the development project. 2. Project Area Pool and Formations Authorized for Enhanced Recovery: Enhanced recovery injection for the Nanuq-Kuparuk development is proposed within the Nanuq-Kuparuk Oil Pool. The target injection zone is correlative to the Nanuk No. 2 exploration well between 7,956 feet and 7,972 feet measured depth. 3. Proposed Injection Area: ConocoPhillips requested authorization to inject fluids for the purpose of enhanced recovery operations on lands in the Colville River Unit within TlON-R4E, TI0N-R5E, TI1N-R4E, and TIIN-R5E, Umiat Meridian. Area Injection Order 27 February 16, 2006 . ~ Page 2 4. Operators/Surface Owners Notification: ConocoPhillips provided operators and surface owners within one-quarter mile of the proposed area with a copy of the application for injection. The only affected operator is ConocoPhillips, operator of the Colville River Unit. The State of Alaska, Department of Natural Resources and Kuukpik Corporation are the only affected surface owners. 5. Description of Operation: The Nanuq-Kuparuk Oil Pool will be developed with a total of three horizontal wells, two producers and one injector. Water alternating with miscible gas injection ("MW AG") will be implemented as the recovery mechanism for the pool. Water injection is scheduled to begin in late 2006 followed by miscible gas injection ("MI") beginning in 2007. Prior to processing, production fÌ'om the Nanuq-Kuparuk Oil Pool and the shallower Nanuq Oil Pool will be commingled on the surface at the Colville River Unit CD4 drill site and further commingled with production fÌ'om the Alpine Pool and other Alpine satellite pools before separation at the Alpine Central Facility, located on the Colville River Unit CD 1 drill site. All production will be transported fÌ'om the Alpine Central Facility using the existing pipeline to the Kuparuk River Field. Peak production rates are expected to be between 3,700 and 8,500 barrels of oil per day. Waterflood injection rates are estimated to peak between 3,500 and 7,900 barrels of water per day ("BWPD") and miscible gas injection rates are estimated to peak at 3.5 to 8 million standard cubic feet of gas per day ("MMSCFPD"). 6. Hydrocarbon Recovery: Estimates of original oil in place and recovery (in units of one million stock tank barrels or "Million STB") within the Nanuq-Kuparuk development area are: Low Estimate (Million STB) 21 3 8 12 Hydrocarbon Volume High Estimate (Million STB) 36 5 19 28 Original Oil in Place Primary Recovery (15%) Primary + Waterflood (40 to 52%) Primary + Waterflood + MWAG (57 to 77%) 7. Geologic Information: a. Stratigraphy and Structure: The Nanuq-Kuparuk reservoir consists of a thin, Cretaceous-aged shallow marine transgressive sandstone deposited atop the Lower Cretaceous Unconformity, a regional erosional surface that has cut down into the shale of the Miluveach Formation within the proposed development area. This reservoir sandstone is approximately 10 feet thick within the proposed development area, and it is situated about 900 feet true vertical feet beneath the overlying Nanuq Oil Pool. The Nanuq-Kuparuk reservoir is similar to the Kuparuk "c" Sands developed in the nearby Kuparuk River and Milne Point Units. The Nanuq-Kuparuk structure is a homoc1ine that dips gently fÌ'om east to west at approximately 0.7 degrees. The trap is stratigraphic in nature, with the reservoir sandstone encased in shale and mudstone. A single, small fault has been mapped in the northern portion ofthe development area, but is not expected to affect recovery. Area Injection Order 27 February 16, 2006 " 4t Page 3 No gas or water contacts have been identified in the Nanuq-Kuparuk reservoir within the proposed development area. b. Confining Intervals: The Nanuq-Kuparuk Oil Pool is overlain by about 440 feet of shale and mudstone assigned to, in ascending order, the Kuparuk "D" interval, the Kalubik Formation and the HRZ interval. The reservoir is underlain by approximately 250 feet of silty mudstone assigned to the Miluveach Formation. 8. Well Logs: Logs of injection wells will be filed with the Commission according to the requirements of 20 AAC 25. 9. Mechanical Integrity and Well Design of Injection Wells: The casing programs for all injection wells will comply with 20 AAC 25.030. ConocoPhillips requests packers be located more than 200 feet measured depth above the top of the injection zone to facilitate wireline access. Tubing or other equipment will be designed and installed in accordance with 20 AAC 25.412. Cement-bond logs will be run to demonstrate isolation of injected fluids to the Nanuq- Kuparuk reservoir. Mechanical integrity tests will be performed on all injection wells in accordance with 20 AAC 25.402(c). Casing-tubing annulus pressures will be monitored during injection operations in accordance with 20 AAC 25.402(e). In the event that pressure observations or the tests indicate communication or leaking of any tubing, casing, or packer, ConocoPhillips will notify the Commission within 24 hours of the observation to obtain Commission approval of appropriate corrective actions. 10. Type of Fluid I Source: Fluids requested for injection are: a. source water rrom the Beaufort Sea; b. miscible gas obtained rrom the Alpine Central Facility; c. produced water rrom the Nanuq-Kuparuk Oil Pool; d. produced water rrom the Alpine Oil Pool and other Alpine satellite pools; and e. small amounts of fluids collected rrom sumps, hydrotests, rinsate rrom washing mud hauling trucks, excess well-work fluids, and treated camp waste water. 11. Water and MI Composition and Compatibility with Formation: Seawater will be the initial waterflood source water for the proposed Nanuq-Kuparuk Oil Pool. The Nanuq-Kuparuk reservoir is analogous to the nearby Kuparuk oil reservoir in the Kuparuk River Unit ("KRU"). Water sensitivity tests performed on core samples ftom the KRU Kuparuk reservoir showed no significant problems with formation plugging or clay Area Injection Order 27 February 16, 2006 . ~ Page 4 swelling over a range of salinities rrom 5,000 ppm IDS to 100,000 ppm IDS (AlO 2 Application, page 22). Later in the life of the field, waterflood source water is expected to change rrom seawater to some combination of seawater, produced water from the Nanuk-Kuparuk and Nanuq Oil Pools, produced water rrom other oil pools with in the Colville River Unit, small volumes of non-hazardous fluids collected rrom sumps, hydrotests, well-work, rinsate rrom washing mud hauling trucks, and treated camp waste water. The operator reports there is no evidence that treated seawater or treated produced waters will be incompatible between any of the existing or proposed pools in the Colville River Field. Numerical simulation, laboratory experiments and PVT modeling demonstrate that MI obtained rrom the Alpine Central Facility will be miscible with Nanuq-Kuparuk crude oil at initial reservoir conditions, and will significantly reduce residual oil saturations below that achievable by waterflooding. 12. Injection Rates and Pressures: Injection rates will be adjusted to manage voidage for the reservoir. Injection of water and MI will alternate in each injection well. Expected maximum and average injection rates are: Oil Pool Maximum MI Rate (MMSCFD) Nanuq-Kuparuk 16 Average MI Rate (MMSCFD) 5 Maximum Water Rate (BWPD) 15,000 Average Water Rate (BWPD) 5,000 Seawater injection pressures from the Alpine Central Facility pump discharge are expected to average approximately 2,500 psi. Wellhead pressures during water injection cycles are expected to be about 2,400 psi. MI pressure available from the Alpine Central Facility is expected to be approximately 4,000 psi, and wellhead pressures during MI injection cycles are expected to be about 3,800 psi. Injection rates may be managed by choking injection wells. MI composition may vary and, as à result, minimum miscibility pressure may vary rrom 1,900 to 2,600 psia. The proposed project will be operated so that the average pressure in the Nanuq-Kuparuk reservoir will be maintained at 3,000 psi, which is significantly above the minimum miscibility pressure. 13. Fracture Information: Although maximum water injection pressure will exceed the Nanuq-Kuparuk reservoir rock parting pressure, computer modeling using injection rates 50% greater than planned indicates: a. rractures will propagate into but not through the shale and mudstone beds of the overlying Kuparuk "D" interval, Kalubik Formation and HRZ or the mudstone of the underlying Miluveach Formation, and b. injection fluids will remain within the Nanuq-Kuparuk reservoir. Area Injection Order 27 February 16, 2006 . ~ Page 5 14. Absence of Underground Sources of Drinking Water: According to the findings and conclusions of Area Injection Orders 18, 18A, and 18B, there are no underground sources of drinking water beneath the permarrost in the Colville River Unit area. Examination of well log data from exploratory wells in and near the proposed Nanuq-Kuparuk development confirms that there are no aquifers within the affected area that could serve as underground sources of drinking water. 15. Mechanical Condition of Adjacent Wells: The Nanuk No.1, Nanuk No.2, Nanuq No.3, and Nanuq No. 5 exploration wells all penetrate the proposed Nanuq and Nanuq-Kuparuk injection intervals within the project area. Nanuk NO.1 and Nanuk No.2 have been plugged and abandoned. Nanuq No.3 and Nanuq NO.5 were drilled through the injection intervals, cased and suspended. All four of these wells have sufficient mechanical isolation to confine injected fluids to the target reservoirs and prevent cross flow into other intervals. CONCLUSIONS: 1. The application requirements of 20 AAC 25.402 have been met. 2. Injection of water and miscible gas will significantly improve recovery. 3. There are no underground sources of drinking water beneath the permarrost in the Colville River Unit or the proposed affected area. 4. Increasing the distance between the packer and top of the injection zone will not compromise well integrity, so long as the top of production casing cement is at least 300 feet measured depth above the packer. 5. The proposed injection operations will be conducted in permeable strata, which can reasonably be expected to accept injected fluids at pressures less than the fracture pressure of the confining strata. 6. Injected fluids will be confined within the appropriate receiving intervals by impermeable lithology, cement isolation ofthe wellbore and appropriate operating conditions. 7. Seawater watertlood source water will be compatible with the Nanuq-Kuparuk reservoir. Compatibility has not been demonstrated for produced waters, mixtures of waters, non- hazardous liquids collected from sumps, hydrotests, well work, rinsate from washing mud- hauling trucks, and treated camp waste water. 8. Reservoir pressure will be maintained to ensure gas miscibility. 9. Reservoir and well surveillance, coupled with regularly scheduled mechanical integrity tests will demonstrate appropriate performance of the enhanced oil recovery project or disclose possible abnormalities. 10. Sufficient information has been provided to authorize injection of water and miscible gas into the Nanuq-Kuparuk Oil Pool for the purposes of pressure maintenance and enhanced oil recovery. Area Injection Order 27 February 16, 2006 . ~ Page 6 NOW, THEREFORE, IT IS ORDERED that: The underground injection of fluids for pressure maintenance and enhanced oil recovery is authorized in the following area, subject to the following rules and the statewide requirements under 20 AAC 25 (to the extent not superseded by these rules). Umiat Meridian Townsmp.~ge, ~ TI0N, R4E TI0N, R5E TUN, R4E Sections TIIN, R5E 1,2 3, 4, 5, 6 1, 2, 3, 4, 9, 10, 11, 12, 13, 14, 15, 16,21,22,23, 24,25,26,27,28,33,34,35,36 3, 4, 5, 6, 7, 8, 9, 10, 15, 16, 17, 18, 19,20, 21, 22,27,28,29,30,31,32,33,34 Rule 1 Authorized Iniection Strata for Enhanced Recoverv Authorized fluids may be injected for purposes of pressure maintenance and enhanced recovery witmn the Nanuq-Kuparuk development area into strata that are common to, and correlate with, the interval between the measured depths of7,956 feet and 7,972 feet in the Nanuk No.2 well. Rule 2 Fluid Iniection Wells The underground injection of fluids must be through a well that has been permitted for drilling as a service well for injection or through a well approved for conversion to a service well for injection in conformance with 20 AAC 25. Rule 3 Well Construction To facilitate wireline access, packers in injection wells may be located more than 200 feet measured depth above the top of the Nanuq-Kuparuk zone; however, packers shall not be located above the confining zone. Since Nanuq-Kuparuk wells will also penetrate the shallower Nanuq Oil Pool, the top of production casing cement must be a minimum of 500 feet measured depth above the Nanuq Pool. Rule 4 Authorized Fluids for Enhanced Recovery Fluids authorized for injection are: a. source water fÌ'om a sea water treatment plant; b. miscible gas obtained fÌ'om the Alpine Central Facility with the condition that the reservoir pressure must be maintained to ensure the miscibility of the injectant; c. tracer survey liquid to monitor reservoir performance; and d. small amounts of other non-hazardous liquids: sump liquid, hydrotest liquid, rinsate fÌ'om wasmng mud hauling trucks, excess well work liquids, and treated camp waste water. Area Injection Order 27 February 16, 2006 . ~ Page 7 Prior to injection of any liquid other than seawater or any mixture of liquids, compatibility with the Nanuq-Kuparuk reservoir must be demonstrated and administrative approval to inject must be obtained rrom the Commission. Sampling, analysis and reporting protocols shall conform to those listed in AlO 18B.002. Rule 5 Monitorin2 Tubiusf-Casin2 Annulus Pressure The tubing and casing annuli pressures of each injection well must be monitored at least daily, except if prevented by extreme weather condition, emergency situations, or similar unavoidable circumstances. Monitoring results shall be documented and made available for Commission inspection. Rule 6 Demonstration of Tubin2/Casin2 Annulus Mechanical Inte2ritv A Commission-witnessed mechanical integrity test must be performed after injection is commenced for the first time in a well, to be scheduled when injection conditions (temperature, pressure, rate, etc.) have stabilized. Subsequent tests must be performed at least once every four years thereafter, except at least once every two years in the case of a slurry injection well. The Commission must be notified at least 24 hours in advance to enable a representative to witness mechanical integrity tests. Unless an alternate means is approved by the Commission, mechanical integrity must be demonstrated by a tubing! casing annulus pressure test using a surface pressure of 1,500 psi or 0.25 psilft multiplied by the vertical depth of the packer, whichever is greater, that shows stabilizing pressure and does not change more than 10 percent during a 30-minute period. Results of mechanical integrity tests must be readily available for Commission inspection. Rule 7 Well Inte2:ritv and Confinement Injection operations must ensure that injected fluids do not rracture or migrate out of the approved injection zone. Whenever any pressure communication, leakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, test, survey, log, or other evidence, the operator shall notify the Commission by the next business day and submit a plan of corrective action on a Form 10-403 for Commission approval. The operator shall immediately shut in the well if continued operation would be unsafe or would threaten contamination of rreshwater, or if so directed by the Commission. A monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the Commission for all injection wells indicating well integrity failure or lack of injection zone isolation. Rule 8 Notification of Improper Class II Iniection Injection of fluids other than those listed in Rule 4 without prior authorization is considered improper Class II injection. Upon discovery of such an event, the operator must immediately notify the Commission, provide details of the operation, and propose actions to prevent recurrence. Additionally, notification requirements of any other State or Federal agency remain the operator's responsibility. Area Injection Order 27 February 16, 2006 . ~ Page 8 Rule 9 Plu~in2 and Abandonment of Fluid Iniection Wells An injection well located within the affected area must not be plugged or abandoned unless approved by the Commission in accordance with 20 MC 25.112. Rule 10 Other conditions a. It is a condition of this authorization that the operator complies with all applicable Commission regulations. b. The Commission may suspend, revoke, or modify this authorization if injected fluids fail to be confined within the designated injection strata. Rule 11 Administrative Actions Unless notice and public hearing are otherwise required, the Commission may administratively waive or amend the requirements of any rule stated above as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into fteshwater. DONE at Anchorage, Alaska and dated February 16 ~. Kl Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission ~I. Cathy P. oerste, Commissioner Alaska il and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it Month file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by non-action of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., lOth day after the application for rehearing was filed). Laser Mailing LaDelS Jam-Proof Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna. AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 ~Corporate Is I G N A T U R E V Express'· Þ,ø.w_Cc>rnDont . David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Baker Oil Tools 4730 Business Park Blvd.. #44 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 use template Ll:uUj¿U~ . Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 \ i1 (17/-1 \ ~ ~I r ! :'i\~ ~ 0 (1 Ó~ \ L 't\) t .888.CE TODAY (238.6329) www.CorporateExpress.com and www.eway.com . ~V~VŒ (ffi~ ~~~~æ~ . AI/ASIiA. OIL AlQ) GAS CONSERVATION COMMISSION SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL NO. AIO 27.001 Mr. Jack Walker ConocoPhillips Alaska Inc. P.O. Box 196860 Anchorage, AK 99519-0105 Re: The application from ConocoPhillips Alaska, Inc. to inject produced water from the Colville River Field, Alpine Oil Pool, into the Nanuq-Kuparuk Oil Pool, North Slope, Alaska. Dear Mr. Walker: ConocoPhillips Alaska, Inc. ("CP AI") requested by letter dated March 28, 2007 authorization to inject produced water from the Alpine Oil Pool into the Nanuq-Kuparuk Oil Pool. Injection of produced water will be an integral part of freeze protection that is necessary when the seawater injection system is not operating. CP AI has scheduled seawater injection system maintenance beginning March 31, 2007 . CPAI' s request is approved. Enhanced oil recovery by injecting seawater was authorized by Area Injection Order ("AIO") 27 dated February 16,2006. The Commission's findings in AIO 27 concluded that CPAI had not demonstrated the compatibility of produced water from other Colville River Unit ("CRU") oil pools. Future approval of produced water from other CRU oil pools was however identified as an option upon demonstration of fluid compatibility with the Nanuq-Kuparuk reservoir. CP AI provided fluid compatibility analysis for Alpine Oil Pool produced water by electronic mail dated March 29,2007. A common seawater injection system provides water for enhanced recovery in all CRU oil pools. According to CP AI, maintenance and repairs are periodically necessary for the proper operation of the seawater injection system. Freeze protection of the surface facilities and wells is necessary if seawater injection is shut down, involving the pumping of small volumes of produced water (roughly 200 barrels) into each seawater injection line daily during the shut down. The water placed into the injection line(s) would eventually be injected into the Nanuq- Kuparuk Oil Pool. The Commission agrees with CP AI's analysis and assessment that injecting produced water from the Alpine Oil Pool will not be detrimental to the Nanuq-Kuparuk Oil Pool. The Commission further finds that injecting produced water from the Alpine Oil Pool will not promote waste or jeopardize correlative rights, and will not contribute to the potential for fluid movement outside of the injection zone. . ADMINISTRATNE APPROVAL NO. AlO 27-0041 March 30,2007 Page 20[2 . This approval applies to the small volume injection produced water from the Alpine Oil Pool only for the purpose of freeze protection when necessitated by maintenance or repairs to the seawater injection system. Larger scale injection of produced water from other CRU oil pools into the Nanuq-Kuparuk will require additional review by the Commission prior to injection should CP AI plan such injection in the future. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. ge, Alaska and dated March 30, 2007. 4~ Daniel T. Seamount Commissioner AIO 27-001,28-001,30-001 Colville River Field . . Subject: AIO 27-001, 28-001,30-001 Colville River Field From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Fri, 30 Mar 2007 15:28:26 -0800 To: undisclosed-recipients:; BCC: jack.a.walker@conocophillips.com, Christine Hansen <c.hansen@iogcc.state.ok.us>, Terrie Hubble <hubblet1@bp.com>, Sondra Stewman <StewmaSD@BP.com>, stanekj <stanekj@unocal.com>, trmjr 1 <trmjr 1 @aol.com>, jdarlington <jdarlington@forestoil.com>, nelson <knelson@petroleumnews.com>, cboddy <cboddy@usibelli.com>, Mark Dalton <mark.dalton@hdrinc.com>, Shannon Donnelly <shannon.donnelly@conocophillips.com>, "Mark P. Worcester" <mark.p.worcester@conocophillips.com>, Bob <bob@in1etkeeper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, Charles O'Donnell <charles.o'donnell@veco.com>, "Randy L. Skillern" <SkilleRL@BP.com>, "Deborah J. Jones" <JonesD6@BP.com>, "Steven R. Rossberg" <RossbeRS@BP.com>, Lois <lois@in1etkeeper.org>, Dan Bross <kuacnews@kuac.org>, Gordon Pospisil <PospisG@BP.com>, "Francis S. Sommer" <SommerFS@BP.com>, Mikel Schultz <Mikel.Schultz@BP.com>, "Nick W. Glover" <GloverNW@BP.com>, "Daryl J. Kleppin" <KleppiDE@BP.com>, "Janet D. Platt" <PlattJD@BP.com>, "Rosanne M. Jacobsen" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, mckay <mckay@gci.net>, Barbara F Fullmer <barbara.f.fullmer@conocophillips.com>, doug_schultze <doug_ schultze@Xtoenergy.com>, Hank Alford <hank.alford@exxonmobil.com>, Mark Kovac <yesno I@gci.net>, gspfoff <gspfoff@aurorapower.com>, Gregg Nady <gregg.nady@shell.com>, Fred Steece <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>,jejones <jejones@aurorapower.com>, dapa <dapa@alaska.net>,jroderick <jroderick@gci.net>, eyancy <eyancy@seal-tite.net>, "James M. Ruud" <james.m.ruud@conocophillips.com>, Brit Lively <mapalaska@ak.net>,jah <jah@dnr.state.ak.us>, buonoje <buonoje@bp.com>, Mark Hanley <mark_hanley@anadarko.com>, Julie Houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@alaskadc.org>, tablerk <tablerk@unocal.com>, Brady <brady@aoga.org>, Brian Havelock <beh@dnr.state.ak.us>, bpopp <bpopp@borough.kenai.ak.us>, Jim White <jimwhite@satx.rr.com>, "John S. Haworth" <john.s.haworth@exxonmobil.com>, marty <marty@rkindustrial.com>, ghammons <ghammons@aol.com>, rmclean <rmclean@pobox.alaska.net>, mkm7200 <mkm7200@a01.com>, Brian Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <gary _schultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoil.com>, Sharmaine Copeland <copelasv@bp.com>, Kristin Dirks <kristin_dirks@dnr.state.ak.us>, Kaynell Zeman <kjzeman@marathonoil.com>, John Tower <John.Tower@eia.doe.gov>, Bill Fowler <Bill_Fowler@anadarko.COM>, Scott Cranswick <scott.cranswick@mms.gov>, Brad McKim <mckimbs@BP.com>,jack newell <jack.newell@acsalaska.net>, James Scherr <james.scherr@mms.gov>, nI617@conocophillips.com, Tim Lawlor <Tim_Lawlor@ak.blm.gov>, Lynnda Kahn <Lynnda_Kahn@fws.gov>, Jerry Dethlefs <Jerry.C.Ðethlefs@conocophillips.com>, crockett@aoga.org, Tamera Sheffield <sheffield@aoga.org>, Jon Goltz <Jon.Goltz@conocophillips.com>, Roger Belman <roger.belman@conocophillips.com>, Mindy Lewis <mlewis@brenalaw.com>, Karl Moriarty <moriarty@aoga.org>, Patty Alfaro <palfaro@yahoo.com>, Jeff <smetankaj@unocal.com>, Gary Rogers <gary _rogers@revenue.state.ak.us>, Arthur Copoulos <Arthur _ Copoulos@dnr.state.ak.us>, Ken <klyons@otsintl.com>, Steve Lambert <salambert@unocal.com>, Joe Nicks <news@radiokenai.com>, Jerry McCutcheon <susitnahydronow@yahoo.com>, Bill Walker <bill-wwa@ak.net>, , Paul Decker <paul_ decker@dnr.state.ak.us>, Aleutians East Borough <admin@aleutianseast.org>, Marquerite kremer <marguerite_kremer@dnr.state.ak.us>, Mike Mason <mike@kbbi.org>, Garland Robinson 10f2 3/30/20073:28 PM AIO 27~00l, 28-001, 30-001 Colville River Field . . <gbrobinson@marathonoiLcom>, Cammy Taylor <cammy_taylor@dnr.state.ak.us>, Thomas E Maunder <tom_maunder@admin.state.ak.us>, Stephen F Davies <steve_davies@admin.state.ak.us>, Keith Wiles <kwiles@marathonoil.com>, Deanna Gamble <dgamble@kakivik.com>, James B Regg <jimJegg@admin.state.ak.us>, Catherine P Foerster <cathy_foerster@admin.state.ak.us>, Bob <Bob@fairweather.com>, gregory micallef <micallef@clearwire.net>, Laura Silliphant <laura _silliphant@dnr.state.ak.us>, David Steingreaber <david.e.steingreaber@exxonmobiLcom>, akpratts@acsalaska.net, Robert Campbell <Robert.Campbell@reuters.com>, Steve Moothart <steve _ moothart@dnr.state.ak.us>, Anna Raff <anna.raff@dowjones.com>, Cliff Posey <cliff@posey.org>, Paul Bloom <paul_bloom@mLcom>, Meghan Powell <Meghan.Powell@asrcenergy.com>, Temple Davidson <temple _ davidson@dnr.state.ak.us>, Walter Featherly <WFeatherly@PattonBoggs.com>, Tricia Waggoner <twaggoner@nrginc.com>, Mike Stockinger <Mike.Stockinger@anadarko.com>, John Spain <jps@stateside.com>, Cody Rice <Cody_Rice@legis.state.ak.us>, John Garing <garingJD@bp.com>, Harry Engel <engelhr@bp.com>, Jim Winegamer <jimwinegamer@brooksrangepetro.com>, Matt Rader <matt ~ rader@dnr.state.ak.us>, carol smyth <caroLsmyth@sheILcom>, Arthur C Saltmarsh <art_saltmarsh@admin.state.ak.us>, Chris Gay <cdgay@marathonoil.com>, foms@mtaonline.net, Rudy Brueggeman <rudy.brueggemann@international.gc.ca>, Cary Carrigan <cary@kfqd.com>, Sonja Frankllin <sfranklin6@bloomberg.net>, Mike Bill <Michael.Bill@bp.com>, Walter Quay <WQuay@chevron.com>, Cynthia B Mciver <bren_mciver@admin.state.ak.us> Jody Colombie <iody colombie~admin.state.ak.us> Special Staff Assistant Alaska Oil and Gas Conservation Commission Department of Administration Content-Type: applicationlpdf ai028-OO1.pdf Content-Encoding: base64 Content-Type: applicationlpdf ai030-001.pdf Content-Encoding: base64 Content-Type: applicationlpdf ai027-001.pdf Content-Encoding: base64 20f2 3/30/20073:28 PM Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 . . David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage,AK 99502 Ciri Land Department PO Box 93330 Anchorage,AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 ~ \ & r\\ Q 1 \W~ 0 #6 ...-..It-.llH.... I IVU n II ........Vllli-1al1UIILL} I'\.'-'~Vll . . 'Subject: Alpine Wtr Compatibility Report From: "Walker, Jack A" <Jack.A.Walker@conocophillips.com> Date: Thu, 29 Mar 2007 13:56:37 -0800 To: jim_regg@admin.state.ak.us Re: Request for Administrative Approval for Ala 27, 28, and 30 Jim, We performed and enclosed a compatibility analysis for the Nanuq, Nanuq-Kuparuk and Fiord Oil Pools, similar to the compatibility analysis for Ala 18.8.002. Please call with any questions. Thanks Jack 265-6268 «Alpine Satellite Compatibility Study.xls» «Alpine Produced and Sea Water Analysis.dot» C D·· Alpine Satellite Compatibility ontent- escnptlOn: Study.xIs Alpine Satellite Compatibility Study.xls Content-Type: application!vnd.ms-excel Content-Encoding: base64 Alpine Produced and Sea Water Analysis.dot Content-Type: Content-Encoding: C D· t· . Alpine Produced and Sea ontent- escnp IOn. W An 1 . d t ater a YSIS. 0 application! octet -stream base64 I of I 3/30/2007 10:06 AM Alpine PW/Satellite Compatibility Study 1 Alpine PW/SW 2 3 4 5 10/90 30/70 50/50 90/10 100/0 Volume ml 100 100 100 100 100 Filter Wt $,'I Final Wt 9 0.0915 0.0933 0.0911 0.0932 0.0917 0.094 0.0914 0.0951 0.0918 0.0957 PW '" Produced Water from LP Sep / SW'" Sea Water Alpine PW/N.muq- Oil Precipitate Emulsion Alpine PW/Fiord Oil Alpine PW/Nanuq Oil Fiord Oil ::: CD3··109 Nanuq Oil ::: CD4-211 Nanuq-Kuparuk Oil '" CD4-318 / / Analysis performed by T. Vl.lk 3/29107 · . ~ Kuparuk Laboratory Report of Analysis /7. 3)',t\ fJÎ \~¿'1Il Report Date: 3/29/07 To: J. Walker Alpine Lead Operator ··T,al"lTt)··... 11 ii ···..../i .iiii <A ¡i¡./i ./iii: : .//:i i<ii .: < ii.· ..... Sample Description STP Seawater Plant Discharge Alpine LP Separator Water WellNum 0 0 Date 02/14/07 03/01/07 Time 13:30 00:25 LocDescriptor Analvsis Unit Result Result Chloride mg/l 20190 11940 Sulfate mg/1 2810 480 Aluminum mg/l <0.1 0.8 Barium mg/l <1 3 Boron mg/l 5 12.9 Calcium mg/l 410 126 Chromium mg/1 <0,2 <0.2 Iron mg/l <0.1 0.5 Lithium mg/L <0,5 1 Magnesium mg/l 1207 119 Manganese mg/l 0.006 0,022 Phosphorus mg/1 <0.1 0.4 Potassium mg/l 291 120 Silicon mg/1 <1 12 Sodium mg/1 10130 7869 Strontium mg/1 10 8.4 Zinc mg/l <0.1 < 0.1 Bicarbonate mg/l 310 915 Carbonate mg/l 0 42 Conductivity micro-mhos/cm 39700 28000 Line Pressure PSIG --- 110 Line TemperatureF Degrees F --- ISO Oil In Water ppm --- 31 pH --- 7.33 8.41 Specific Gravity @ 60 degrees --- 1.0283 1.0157 F Sulfide mg/1 Not Analyzed Not Analyzed Total Suspended Solids 0.45 u mg/1 --- 20.0 If there are any questions regarding this data, please call KLS at 659-7214. Completed By: Reviewed By:_TJV_ #5 " - . . # '~ ConocoPhi II ips Jack Walker North Slope Operations and Development ConocoPhillips Alaska 700 G Street Anchorage, AK 99501 Phone: 907.276.1215 RECEIVED MAR 2 8 Z007 March 28, 2007 Alaska Oil & Gas Cons. Commission Anchorage Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West ih Avenue, Suite 100 Anchorage, AK 99501 Re: Administrative Approval for Fiord, Nanuq and Nanuq-Kuparuk Oil Pools Area Injection Orders 27,28, and 30 Colville River Field Dear Chairman Norman: ConocoPhillips Alaska, Inc. as operator of the Colville River Unit requests administrative approval to freeze protect facilities and wells servicing the Fiord, Nanuq, and Nanuq- Kuparuk Oil Pools by injecting small amounts of produced water from the Alpine Oil Pool. This method of freeze protection is needed when the sea water injection system is shut down for maintenance. Planned sea water system maintenance is anticipated to require freeze protection on March 31,2007. Area Injection Orders 27, 28 and 30 for the Nanuq-Kuparuk, Nanuq, and Fiord Oil Pools respectively authorize the injection of seawater for enhanced recovery, and do not authorize injection of produced water from other pools. The Colville River Field seawater injection system is common to all pools, and is occasionally shut down for planned and unplanned maintenance. Freeze protection of surface facilities and wells is necessary if seawater injection is shut down. The proposed freeze protection of the Colville River Field seawater injection system involves injecting roughly 200 barrels of produced water into each cross-country seawater injection lines servicing the subject pools each day while the sea water system is shut down. The upcoming shutdown is planned for 4 days. . . Administrative Approval for Fiord, Nanuq and Nanuq-Kuparuk Oil Pools Area Injection Orders 27,28, and 30 Colville River Field March 28, 2007 We estimate the freeze protection volume of Alpine Oil Pool produced water injected will amount to less than 0.02% of the total injection into the subject pools. Injection of this volume of produced water from the Alpine Oil Pool for freeze protection will not adversely affect recovery from the Nanuq, Nanuq-Kuparuk, and Fiord Oil Pools. Thank you for considering this request for an administrative approval to Area Injection Orders 27,28, and 30. Please call me at 265-6268 if you have questions. Very truly yours, ð~ L0~ Jack Walker North Slope Operations and Development ConocoPhillips Alaska, Inc. cc: Mr. Jim Regg, AOGCC Mr. Chris Wilson, ConocoPhillips Alaska, Inc. #4 ll'wd: Kb: Nanuq KecovenesJ fIþ . Subject: [Fwd: RE: NanuqRecoveries] From: Jane Williamson <jane _ williamson@admin.state.ak.us> Date: Tue, 14 Peb 2006 10:02:32 -0900 To: JodyJ Colombie <jody_colombie@admin.state.ak.us> CC: StephenP Davies <steve~davies@admin.state.ak.us> Please put this in the Nanuq and Nanuq-Kuparuk files. -------- Original Message -------- RE: Nanuq Recoveries Tue, 10 Jan 2006 13:23:51 -0900 Walker, Jack A <Jack.A.Wa1ker@conocophillips.com> Jane Williamson <jane williamson@admin.state.ak.us> Subject: Date: From: To: No downhole commingling planned on injection or production. Injection will have a common source on the surface and production will be commingled in the surface manifold. Jack -----Original Message----- *From:* Jane Williamson [mailto:jane williamson@admin.state.ak.us] *Sent:* Tuesday, January 10, 2006 12:57 PM *To:* Walker, Jack A *Subject:* Re: Nanuq Recoveries One other question. Is your plan to have separate injectors for Nanuq and Kuparuk reservoirs, or do you plan to commingle injection? I may have missed it but I didn't see anything in your application on this. Walker, Jack A wrote: When I first heard the projected recoveries for Nanuq-Kuparuk, they seemed high to me, too. The reservoir is described as thin with high permeability and relatively homogeneous. The waterflood mobility and the response to miscible injectant are favorable. The reservoir description and fluid characterization lead to prediction of the recovery factors we cited. Would be nice to find more OOIP. . . Jack PS: The MWAG recovery is incremental to waterflood as you assumed. -----Original Message----- *From:* Jane Williamson [mailto:jane williamson@admin.state.ak.us] *Sent:* Tuesday, January 10, 2006 9:39 AM *To:* Walker, Jack A *Subject:* Re: Nanuq Recoveries OK. I was just wondering about the Nanuq-Kuparuk recoveries . Assuming 10-15% primary, incremental waterflood recovery of 25-37% and incremental MWAG recovery of 17-25% (I assume incremental to waterflood), I calculate between 52% and 77% recovery. This seems really high to me. It's not that important for the order. I was just curious and wanted to make sure I didn't report incorrect values within the findings. Walker, Jack A wrote: Jane, I looked at the Nanuq & Nanuq-Kuparuk recoveries in the AIO application. The recovery factors on p. 18 were what we intended. The ranges reported was based on judgement of the reservoir engineer after running many, many sensitivities. I of2 2/17/2006 1 :06 PM [Fwd: RE: Nanuq Recoveries] . . believe they are consistent with the testimony offered in the public hearing of October 4 (p. 42 of the ppt file). I'll touch base tomorrow. Jack Jane Williamson, PE <iane williamson~admin.state.ak.us> Reservoir Engineer Alaska Oil and Gas Conservation Commission -" 2 of2 2/1 7/2006 1 :06 PM ..~. u_.._,. ___ ~.,w__.. ~'"... . ....................." w. ~p....w. . Steve, Responses to Nanuq AIO questions: 1. The Nanuq sandstone is a very fine to fine-grained, lithic sandstone (litharenite). The average composition of the framework grains is 45% quartz,8% feldspar and 45% lithic rock fragments and detrital minerals. Detrital matrix within the sand ranges from 1-10%. The detrital matrix consists predominantly of clay minerals with local patches replaced by siderite cement. The clays present consist of illite/mica (11%), chlorite (7%), kaolinite (2%). Mixed layer illite/smectite clays only account for 1-2% and are mostly illite with 20-30% smectite layers. Clay swelling is not expected to be significant based on experience with similar clays in other Brookian reservoirs and Nanuq core flood studies. Secondary sandstone cementation is generally localized and patchy based on control from core and existing wells. Various core and log analyses indicate the Nanuq-Kuparuk interval is a Kuparuk C Sand very similar to Kuparuk C Sand found in the Kuparuk River Unit (KRU). Based on extensive experience with Kuparuk C Sand injection operations at the KRU and the similarity of Nanuq-Kuparuk, clay or fines are not expected to influence reservoir performance of the Nanuq-Kuparuk pool. 2. There is no Evidence that treated seawater or treated produced waters will be incompatible among any of existing and proposed pools in the Colville River Field. Please call or reply with any further questions. Jack Walker ConocoPhillips Alaska, Inc. North Slope Development -----Original Message----- From: Stephen Davies ltc: .state.ak. Sent: Wednesday, January 11, 2006 9:01 AM To: Walker, Jack A Cc: Tom Maunder; Jane Williamson Subject: Re: Nanuq Area Injection Order: Additional Questions for Operator Jack, A couple of final questions concerning the Nanuq and Nanuq-Kuparuk AIO's: 1. Is there any evidence of clay or other fine materials that may swell or mobilize and influence reservoir performance in either the Nanuq or Nanuq-Kuparuk Oil Pool? If they are present, could you please provide descriptions and percentages? 2. Do you have any evidence that produced or blended, produced water from the Nanuq, Nanuq-Kuparuk, Alpine, or even Fiord would be incompatible with the Nanuq or Nanuq-Kuparuk reservoirs? Thanks for your help, lof2 1/19/2006 8:45 AM .~. .. _m, . _ W ..., ........ ~. ...... ......................0 .... ~p'" "V' . Steve Davies Petroleum Geologist Alaska Oil & Gas Conservation Commission 907-793-1224 Walker, Jack A wrote: Steve, Enclosed is a draft response. We'll follow up with a paper transmittal to the Chairman. Jack -----Original Message----- From: Stephen Davies davies@admin.state.~~. Sent: Friday, October :43 PM To: Walker, Jack A Cc: Tom Maunder; John Hartz Subject: Nanuq Area Injection Order: Additional Questions for Operator Jack, Attached are a few more questions from AOGCC concerning the Nanuq Area Injection Order. I apologize for the delay in getting them to you. These are the last few questions we have prior to completing the order. The public hearing scheduled for Tuesday, Nov. 1 has been vacated. Please call me at 793-1224 if you have any questions. Sincerely, Steve Davies Petroleum Geologist Alaska Oil & Gas Conservation Commission 20f2 1/19/20068:45 AM . . Subject: Re: Nanuq Area Injection Order: Additional Questions for Operator From: Stephen Davies <steve _ davies@admin.state.ak.us> Date: Wed, II Jan 200609:00:51 -0900 To: "Walker, Jack A" <Jack.A.Walker@conocophillips.com> CC: Tom Maunder <tom_maunder@admin.state.ak.us>, Jane Williamson <Jane_ Williamson@admin.state.ak.us> Jack, A couple of final questions concerning the Nanuq and Nanuq-Kuparuk AIO's: 1. Is there any evidence of clay or other fine materials that may swell or mobilize and influence reservoir performance in either the Nanuq or Nanuq-Kuparuk Oil Pool? If they are present, could you please provide descriptions and percentages? 2. Do you have any evidence that produced or blended, produced water from the Nanuq, Nanuq-Kuparuk, Alpine, or even Fiord would be incompatible with the Nanuq or Nanuq-Kuparuk reservoirs? Thanks for your help, Steve Davies Petroleum Geologist Alaska Oil & Gas Conservation Commission 907-793-1224 Walker, Jack A wrote: Steve, Enclosed is a draft response. We'll follow up with a paper transmittal to the Chairman. Jack -----Original Message----- From: Stephen Davies [mailto:steve davies@admin.state.ak.us] Sent: Friday, October 28, 2005 2:43 PM To: Walker, Jack A Cc: Tom Maunder; John Hartz Subject: Nanuq Area Injection Order: Additional Questions for Operator Jack, Attached are a few more questions from AOGCC concerning the Nanuq Area Injection Order. I apologize for the delay in getting them to you. These are the last few questions we have prior to completing the order. The public hearing scheduled for Tuesday, Nov. 1 has been vacated. Please call me at 793-1224 if you have any questions. Sincerely, Steve Davies Petroleum Geologist Alaska Oil & Gas Conservation Commission 1 of 1 1/11/2006 11 :27 AM La. ".-. ....---. ... .-....-""1.....---..... _......_~.J . . Subject: [Fwd: RE: Nanuq Recoveries] From: Jane Williamson <jane_williamson@admin.state.ak.us> Date: Tue, 10 Jan 2006 13:32:05 -0900 To: Thomas E Maunder <tom_maunder@admin.state.ak.us>, Stephen F Davies <steve_davies@admin.state.ak.us> I think we should take out the rule on injection commingling. They can come to us later if they wish to do it, with justification. -------- Original Message -------- RE: Nanuq Recoveries Tue, 10 Jan 2006 13:23:51 -0900 Walker, Jack A <Jack.A.Walker@conocophillips.com> Jane Williamson <jane williamson@admin.state.ak.us> Subject: Date: From: To: No downhole commingling planned on injection or production. Injection will have a common source on the surface and production will be commingled in the surface manifold. Jack -----Original Message----- *From:* Jane Williamson [mailto:jane williamson@admin.state.ak.us] *Sent:* Tuesday, January 10, 2006 12:57 PM *To:* Walker, Jack A *Subject:* Re: Nanuq Recoveries One other question. Is your plan to have separate injectors for Nanuq and Kuparuk reservoirs, or do you plan to commingle injection? I may have missed it but I didn't see anything in your application on this. Walker, Jack A wrote: When I first heard the projected recoveries for Nanuq-Kuparuk, they seemed high to me, too. The reservoir is described as thin with high permeability and relatively homogeneous. The waterflood mobility and the response to miscible injectant are favorable. The reservoir description and fluid characterization lead to prediction of the recovery factors we cited. Would be nice to find more OOIP... Jack PS: The MWAG recovery is incremental to waterflood as you assumed. -----Original Message----- *From:* Jane Williamson [mailto:jane williamson@admin.state.ak.us] *Sent:* Tuesday, January 10, 2006 9:39 AM *To:* Walker, Jack A *Subject:* Re: Nanuq Recoveries OK. I was just wondering about the Nanuq-Kuparuk recoveries . Assuming 10-15% primary, incremental waterflood recovery of 25-37% and incremental MWAG recovery of 17-25% (I assume incremental to waterflood), I calculate between 52% and 77% recovery. This seems really high to me. It's not that important for the order. I was just curious and wanted to make sure I didn't report incorrect values within the findings. Walker, Jack A wrote: Jane, I looked at the Nanuq & Nanuq-Kuparuk recoveries in the AlO application. The recovery factors on p. 18 were what we intended. The ranges reported was based on judgement of the reservoir engineer after running many, many sensitivities. I believe they are consistent with the testimony offered in the public hearing of October 4 (p. 42 of the ppt file). I'll touch base tomorrow. Jack 10f2 1/11/20067:48 AM Nanuq Pool Rules: Public Hearing Expectations and Additional Ques... . . Jack, The Alaska Oil and Gas Conservation Commission's ("Commission") order process establishes rules and exceptions to statewide regulations in 20 AAC 25 to govern efficient, safe production practices for maximizing ultimate resource recovery. The Commission is required to perform its duties to the protect public interest in a public forum. A public hearing has been requested concerning the Nanuq pool rules. This hearing will be held on October 4, 2005 at 9 AM. The Commission will shortly publish on our web site a set of expectations for pool rules hearings. The following rough draft of those expectations will help ConocoPhillips prepare for the hearing. Public Hearing Expectations In order to ensure that adequate information is provided to the Commission and the public during a hearing, the applicant must prepare and present testimony of sufficient detail to allow the Commission to establish governing rules. This testimony must be prepared and presented by representatives capable of addressing detailed Commission questions and comments concerning the following topics: 1. Ownership and lease issues 2. Confidentiality issues: identify specific exhibits and testimony, justify each request 3. Geology and geophysics 4. Reservoir description, rock and fluid properties, reservoir modeling 5. Hydrocarbon-in-place, recovery factors, reserves 6. Production mechanisms 7. Production: historical and projected 8. Well construction 9. Development Plans 10. Facilities, including metering 11. Specialized waivers: request and justify In addition to displays used to illustrate technical discussions, the applicant must also supply a legible base map that will be used during the hearing to identify key geographic features and key elements of the proposed project. Additional Commission Questions and Comments Upon further review of ConocoPhillips' application and supplemental information, the Commission has identified several questions and comments that should be addressed, either in writing before the public hearing or within the oral testimony at the hearing. 1. Will the proposed development include wells that encroach within 500' of existing unit boundaries, PA boundaries, or property lines where ownership or landownership changes? If so, why is this? 2. Have all affected working interest ownership, landownership, surface ownership issues been successfully addressed and resolved? Have all issues with the Alaska DNR been successfully addressed and resolved? 3. In ConocoPhillips' application, Proposed Conservation Order Rule 3, well spacing, requests a 300' set back from external boundaries where working interest ownership changes. Every other order issued by the Commission specifies at least a 500' set back from such boundaries. Please provide technical justification for this request. lof2 9/26/2005 11 :55 AM Nanuq Pool Rules: Public Hearing Expectations and Additional Ques... . . 4. If the nature of the Nanuq is stratigraphic, wouldn't more pressure surveys be required to determine reservoir compartmentalization? The reservoirs appear to cover 6 to 10 sections (between 3800 and 6400 acres). The proposed reservoir pressure surveillance program calls for 2 surveys per year. In light of the apparent influence of stratigraphy over this pool, a minimum of 4 or 5 would seem more appropriate, especially during the early years of development. 5. CPAI is proposing to obtain initial pressures in only injection wells. Why are pressure surveys not planned in production wells? An initial static survey in wells drilled after production start up will document early pressure performance. 6. Why not develop the portion of the reservoir to the southwest at this time? 7. Proposed Conservation Order Rule 7 is a re-statement of existing regulations. 8. Proposed Conservation Order Rule lOb does not specifY monitoring frequency. Please contact me if you need additional information. Sincerely, Steve Davies Alaska Oil and Gas Conservation Commission (907) 793-1224 20f2 9/26/2005 11 :55 AM Nanuq Applications . . Jack, After reviewing the pool rules draft application, we have the following questions: 1. Could you please describe, in language that can be made part of the public record, the overall structure and trap configuration of the Nanuq and Nanuq-Kuparuk reservoirs? 2. Could you please provide separate estimates of OOIP and an approximate recovery factor for each reservoir for the public record? 3. Is there a rough magnitude of difference in recovery factor between vertical development versus horizontal well development? (ref sec 1.3) 4. There should be a brief description of the allocation process and or basic equations that will be used for allocating total production back to the pool then the wells. This will help us understand any sensitivities with respect to correlative rights and tax or royalty issues prior to production start up. (ref sec 3.0) 5. Please provide compositional assays of the oil and gas from each pool as exhibits. 6. A shallow zone identified as the "K-2" is shown on the exploration well drawings. It is stated that this zone is hydrocarbon-bearing, but there is no mention of this zone in the draft document. Could you address this? The course of action from here is to update the draft pool rules application answering the questions above, then formally submit that application and the AIO application to the Commission as soon as you can. The order process should take about 6 weeks. AOGCC will publish the public notice (which takes about 2 to 3 days) and set a tentative hearing date at least 30 days from the date of publication. After the hearing, the order should be published in 5 or so business days (assuming there are no problems). In the meantime, if we have additional questions AOGCC will request supplemental information in writing from you. If you have questions, I will be out of the office on Monday, but Tom and Jack Hartz will be in. Thanks, Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission Telephone: (907) 793-1224 1 of I 9/26/2005 11 :55 AM Nanuq . . Steve, Tom, & Jack, I've been getting some questions from managemenUpartners on the timing of the Nanuq & Nanuq-Kuparuk pool rules and area injection orders. Could you give me an estimate of the rough date or a timeframe when orders will be made? Thanks, Jack Walker ConocoPhillips Alaska, Inc. Western North Slope Development 907-265-6268 1 of 1 9/26/2005 11 :56 AM Re: Nanuq AIO & CO Drafts - Corrections . . Thanks Jack. Call when you come over. I haven't looked at the documents yet, but based on what you relate in your message will the injectors have cemented liners or will they be slotted as well?? Tom Walker, Jack A wrote: Tom, I came across some errors in the drafts I dropped off Friday. The most glaring error was that the "production/injection holes will be cemented" - we're NOT planning to cement linerslcasing in the production holes. We are planning slotted liners. I'll drop off corrected versions of those sheets today (cementing error on p. 13 of the AIO app & p. 4 of the non-Confidential C.O. app). Please accept my apology for any confusion this may have caused. Jack 265-6268 1 of 1 9/26/2005 11 :56 AM #3 . Conoc~illips . Chris Alonzo Development Supervisor, WNS ConocoPhillips Alaska 700 G Street Anchorage, AI< 99501 Phone: 907.276.1215 November 7,2005 Mr. John Nonnan, Chair Alaska Oil and Gas Conservation Commission Alaska Department of Revenue 333 West 7th Avenue, Suite 100 Anchorage,AJ( 99501 Re: Supplemental Infonnation for Area Injection Order(s) for Proposed Nanuq and Nanuq-Kuparuk Oil Pools Colville River Field Dear Mr. Nonnan: On September 15,2005, ConocoPhillips Alaska, Inc. (CPAI) as operator of the Colville River Unit and on behalf of the Working Interest Owners, requested an area injection order (Ala) authorizing enhanced recovery opera~ions in the proposed Nanuq and Nanuq-Kuparuk oil pools. Mr. Steve Davies communicated some questions and comments regarding the Nanuq Ala on October 28, 2005. Attached to this letter are responses to the questions and comments. I hope that this infonnation meets your needs and I am available to discuss it with you and your staff if needed. Please call me at 265-6822 or Jack Walker at 265-6268 if you have questions. Very truly yours, ~ Chris Alonzo Development Supervisor, Western North Slope ConocoPhillips Alaska, Inc. Attachment . . Applications for Area Injection Order(s) for Proposed Nanuq and Nanuq-Kuparuk Oil Pools Colville River Field November 7, 2005 Page 2 cc: Alaska Department of Natural Resources Division of Oil and Gas Attention: Mike Kotowski 550 W. 7th Avenue, Suite 800 Anchorage, Alaska 99501 Arctic Slope Regional Corporation Attention: Teresa Imm 3900 C Street, Suite 801 Anchorage, Alaska 99503-5963 Kuukpik Corporation Attention: Isaak Nukapigak P.O. Box 187 Nuiqsut, Alaska 99789-0187 Kuukpik Corporation Attention: Lanston Chinn 825 W. 8th Avenue, Suite 206 Anchorage, Alaska 99501 Anadarko Petroleum Corporation Attention: Bill Shackelford 1201 Lake Robbins Drive P.O. Box 1330 Houston, Texas 77251-1330 ConocoPhillips Alaska, Inc. Attention: Matt Elmer ATO 1750 700 W. G Street P.O. Box 100360 Anchorage, Alaska 99510-0360 'UPPlemental Informatio' for the Nanuq and Nanuq-Kuparuk AIO AOGCC questions (some cases statements with blanks filled in by CPAI) are shown in normal font. CPAI responses are shown in bold, italicized font. 1. Production and injection rate estimates are needed for each pool for public record: Annualized peak production rates for the Nanuq Oil Pool are expected to be between 4,000 and 11,000 barrels of oil per day ("BOPO"). Annualized waterflood injection rates are estimated to peak between 3,500 and 9,600 barrels of water per day ("BWPO") and miscible gas injection rates are expected to peak at 12 to 33 million standard cubic feet of gas per day ("MMSCFO"). Annualized peak production rates for the Nanuq-Kuparuk Oil Pool are expected to be between 3,700 and 8,500 barrels of oil per day ("BOPO"). Annualized waterflood injection rates are estimated to peak between 3,500 and 7,900 barrels of water per day ("BWPO") and miscible gas injection rates are expected to peak at 3.5 to 8 million standard cubic feet of gas per day ("MMSCFD"). 2. Recovery estimates are needed for public record. Are the following statements accurate? The Nanuq Oil Pool is estimated to contain 84 to 169 million stock tank barrels ("STB") of original oil in place ("OOIP") within the development area, based on exploratory drilling and seismic mapping. Computer simulation suggests primary recovery for the pool is expected to be approximately 1 0% of the OOIP. Waterflood is expected to increase recovery by 10 to 15%, and use of MWAG technology should produce an additional 9 to 14% of the OOIP. The Nanuq-Kuparuk Oil Pool OOIP is estimated to be 21 to 36 million STB within the development area. Primary recovery is estimated to be approximately 15% of OOIP. Incremental waterflood recovery is expected to recover an additional 25 to 37% above primary. Reservoir simulation supports an incremental increase of 17 to 25% for the MW AG process. Yes, these statements are accurate. 3. A general description of the Nanuq and Nanuq-Kuparuk structure is needed for the record. The Nanuq reservoir is a basin floor submarine fan system dominated by lobe-sheet deposits. The fan system lies 1 to 2 miles east of the time equivalent, northeast-southwest trending base of slope. The Nanuq reservoir occurs at a local high in the Drillsite CD4 area with structure dipping to the south and east, and absence of sand to the north and west. The trap is stratigraphically created. There are no major faults cutting the Nanuq reservoir. The Nanuk #1 and #2 and Nanuq #3 and #5 wells define the core of the development area for the Nanuq reservoir. Log and core data confirm an oil-water contact at 6,207 subsea true vertical depth (TVD). The CD1-229 test indicated a possible gas cap. Page 1 of 3 11/7/2005 CPAI Responses to AOGCC Questions 4!tuPPlementallnformatiO. for the Nanuq and Nanuq-Kuparuk AIO The Nanuq-Kuparuk reservoir is a shallow marine transgressive sandstone that lies below the Kalubik shales and just above the Lower Cretaceous Unconformity (LCU). The structure dips from east to west at approximately 0.7 degrees. Trap is stratigraphic in nature with sand encased above and below by shales. The northern edge of the reservoir has one mapped fault which not expected to affect recovery. 4. In the application, there is a statement that a single, small fault has been mapped in the northern portion of the development area, but is not expected to affect reservoir performance. Does this fault affect both intervals? That fault cuts only the Nanuq-Kuparuk reservoir, and is not apparent in the Nanuq reservoir. 5. Please provide a statement regarding compatibility of produced water with the reservoir. Will produced water be used for EOR purposes at CD4? Based on commingled processing of several pools (Alpine, Fiord and Nanuq initially and others later) at CD1 it appears possible that multiple produced waters could be injected at CD4. If so, please provide a statement addressing compatibility of that water with the Nanuq and Nanuq-Kuparuk Oil Pools. The water injection plan for the Nanuq and Nanuq-Kuparuk Oil Pools is based on a single water injection pipeline between the Alpine Central Facility (ACF) and Drill Site CD4. Processing of all production from all pools in the Colville River Field is planned via the ACF. Drill Site CD4 is the surface location for all development wells planned for the two proposed pools. Seawater is planned as the initial waterflood source water for Drill Site CD4 and produced water or mixed water is planned for injection later in the field life. Production commingling on the surface is planned for all pools in the Colville River Field at the ACF. Compatibility of waters will be managed with the addition of scale inhibitors. Scale inhibitor is presently used for produced water and seawater mixing upstream of one of three water injection pumps at the Alpine Central Facility (ACF). By mixing produced water and seawater, pump utilization can be maximized in the interim when produced water volume is sufficient to only partially load a water injection pump. The other two ACF water injection pumps are presently dedicated to seawater service. The mixed water and seawater injection lines are segregated and each flow to a separate set of wells. The mixed produced water and seawater are presently directed to a certain subset of wells at Drill Site CD1. As produced water increases beyond the capacity of a single pump, the segregation of the mixed water may be ceased and all wells served by the ACF water injection system may receive mixed seawater and produced water. Page 2 of 3 111712005 CPAI Responses to AOGCC Questions .UPPlementallnformatio' for the Nanuq and Nanuq-Kuparuk AIO 6. Is it possible that non- hazardous filtered water collected from the initial Alpine development area will be considered for injection at CD4? If so, appropriate statements of request and justification are needed. Yes. Commission-approved fluids used for injection in the Alpine Oil Pool will be considered for injection at CD4. Non-hazardous fluids from several sources in the Colville River Field are normally injected into the WD-02 Class I disposal well. But. the WD-02 well is occasionally unavailable due to compliance testing or diagnostics. The Commission approved blending of specific non-hazardous fluids with existing Class II fluids used for EaR in the Alpine Oil Pool (Ala 18B.002). When WD-02 is unavailable. current practice is to blend specific non- hazardous fluids (NHF) approved by the Commission with the mixed water stream discussed in section 5. Manifolding at the Alpine Central Facility allows the segregation of the blended NHF stream for injection into a subset of CD1 wells. As produced water increases and exceeds the capacity of a single water injection pump. all injection water for the Colville River Field may become mixed water, and the NHF will be blended into that stream. If NHF is blended in the entire stream of Colville River Field EaR injection water. the concentration of NHF will decrease to 0.02% of the EaR injection water. This concentration is not expected to cause any change to the EaR effciency in any of the Colville River Field pools. Page 3 of 3 11/7/2005 CPAI Responses to AOGCC Questions Nanuq Area Injection Order: Additional Questions for Operator . . Subject: Nanuq Area Injection Order: Additional Questions for Operator From: Stephen Davies <steve _ davies@admin.state.ak.us> Date: Fri, 28 Oct 2005 14:42:52 -0800 To: Jack.A. Walker@conocophillips.com CC: Tom Maunder <tom _ maunder@admin.state.ak.us>, John Hartz <jack _ hartz@admin.state.ak.us> Jaçk, Attaçhed are a few more questions from AOGCC çonçerning the Nanuq Area Injeçtion Order. I apologize for the delay in getting them to you. These are the last few questions we have prior to çompleting the order. The publiç hearing sçheduled for Tuesday, Nov. 1 has been vaçated. Please çall me at 793-1224 if you have any questions. Sinçerely, Steve Davies Petroleum Geologist Alaska Oil & Gas Conservation Commission Content-Type: applicationlmsword 051027_ Questions_ for_ Operator_Nanuq_AIO _.doc Content-Encoding: base64 I of! 1/19/2006 8:52 AM .~' Nanuq AIO Questions for Operator ., 1. Production and injection rate estimates are needed for each pool for public record: Peak production rates for the Nanuq Oil Pool are expected to be between and barrels of oil per day ("BOPD"). Waterflood injection rates are estimated to peak between and barrels of water per day ("BWPD") and miscible gas injection rates are expected to peak at million standard cubic feet of gas per day ("MMSCPD"). Peak production rates for the Nanuq-Kuparuk Oil Pool are expected to be between and barrels of oil per day ("BOPO"). Waterflood injection rates are estimated to peak between and barrels of water per day ("BWPD") and miscible gas injection rates are expected to peak at million standard cubic feet of gas per day ("MMSCPD"). 2. Recovery estimates are needed for public record. Are the following statements accurate? The Nanuq Oil Pool is estimated to contain million stock tank barrels ("STB") of original oil in place ("OOIP") within the development area, based on exploratory drilling and seismic mapping. Computer simulation suggests primary recovery for the pool is expected to be % of the OOIP. Waterflood is expected to increase recovery by 10 to 15%, and use of MWAG technology should produce an additional 9 to 14% of the OOIP. The Nanuq-Kuparuk Oil Pool OOIP is estimated to be million STB within the development area. Primary recovery is estimated to be %. Incremental waterflood recovery is expected to recover an additional 25 to 37% above primary. Reservoir simulation supports an incremental increase of 17 to 25% for the MWAG process. 3. A general description of the Nanuq and Nanuq-Kuparuk structure is needed for the record. 4. In the application, there is a statement that a single, small fault has been mapped in the northern portion of the development area, but is not expected to affect reservoir performance. Does this fault affect both intervals? 5. Please provide a statement regarding compatibility of produced water with the reservoir. Will produced water be used for EOR purposes at CD4? Based on commingled processing of several pools (Alpine, Fiord and Nanuq initially and others later) at CD1 it appears possible that multiple produced waters could be injected at CD4. If so, please provide a statement addressing compatibility of that water with the Nanuq and Nanuq-Kuparuk Oil Pools. 6. Is it possible that non- hazardous filtered water collected from the initial Alpine development area will be considered for injection at CD4? If so, appropriate statements of request and justification are needed. AOGCC Page 1 of 1 2/14/2006 051020_ Questions_for _Operator _ Nanu~ AlO.doc #2 STATE OF ALASKA .. NOTICE TO PUBLISHER .. ADVERTISING ORDER NO. ADVERTISING ORDER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO-02614014 F AOGCC AGENCY CONTACT DATE OF A.O. R 333 W 7th Ave, Ste 100 o Anchorage, AK 99501 M Jody Colombie PHONE September 26, 2005 PCN (907) 793 -1721 DATES ADVERTISEMENT REQUIRED: ¿ Anchorage Daily News PO Box 149001 Anchorage, AK 99514 September 27,2005 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Type of Advertisement X Legal D Display Advertisement to be published was e-mailed D Classified DOther (Specify) SEE ATTACHED REF TYPE 1 VEN 2 ARD 3 4 1=11\1 4Mnlll\lT NUMBER AOGCC, 333 W. 7th Ave., Suite 100 Anchora¡re. AK 99';01 AMOUNT DATE I ITOTALOF I PAGE 1 OF ALL PAGES$ 2 PAGES COMMENTS 02910 ~V f":.f":. Pt::M If":. 4f":.f":.T I=V NMR DIST LlQ 05 02140100 73451 2 3 4 REQUISITIONED BY: ... IDIVISION APPROVAL: ·. .. Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Proposed Nanuq and Nanuq-Kuparuk Oil Pools, Colville River Field Request for an Area Injection Order ConocoPhillips Alaska, Inc., by letter and application dated September 15, 2005, has requested the Alaska Oil and Gas Conservation Commission ("Commission") issue an area injection order, in accordance with 20 AAC 25.460, authorizing enhanced oil recovery operations in the proposed Nanuq and Nanuq-Kuparuk Oil Pools within the Colville River Unit. These proposed pools, and the proposed development area, are located within portions of TlON-R4E, TlON-R5E, TIIN-R4E, and TIIN-R5E, Umiat Meridian. The Commission has tentatively scheduled a public hearing on this application for November 1, 2005 at 9:00 am at the offices of the Alaska Oil and Gas Conservation Commission at 333 West ih Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on October 14,2005. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221. In addition, a person may submit a written protest or written comments regardin~ this application to the Alaska Oil and Gas Conservation Commission at 333 West i Avenue, Suite 100, Anchorage, Alaska 99501. Written protest or comments must be received no later than 4:30 pm on October 28, 2005 except that if the Commission decides to hold a public hearing, written protest or comments must be received no later than the conclusion of the November 1,2005 hearing. . who may need special accommodations in ing, please contact Jody Colombie at 793- ~ Published Date: September 27, 2005 ADN AO# 02614014 .. Anchorage Daily News Affidavit of Publication .. 1001 Northway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER OTHER OTHER GRAND ADIt DATE 1'0 ACCOUNT PER DAY CHARGES CHARGESIt2 CHARGES 1t3 CHARGES 1t4 CHARGES 1t5 TOTAL 614495 Œ/27/2005 02614014 STOF0330 $176.32 $176.32 $0.00 $0.00 $0.00 $0.00 $0.00 $176.32 ,},'"frt*1'1 hJ/' Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska í ¡OMMISS:ON EXPIRES, tTfþ! dU' ~ Xa~h~ fi)j;þ 'lK ", " V'-' \ /J{)Ý) r-- ()\ ,. L- .J Notice of Public Hearing . STATE OF ALASKA Alask~ òiT and Ga~ Conservation Commission Re: ProposedNâiï~Cland Nanuq-Kuparuk Oil Pools, Colville River Field Request for an Area In iection Order ConocoPhillips Alaska, Inc., by letter and appli- cation dated September 15, 2005, has requested the Alaska Oil and Gas Conservation Commission ("Commission'·) issue on area iniection order in accordance with 20 AAC 25.460, authorizing ~n- hanced oil recovery operations in the proposed Nanuq and Nanuq-Kuparuk Oil Pools within the Colville River Unit. These proposed pools, and the proposed development area, are located within m~~~~~,f J':'~~i~;le~ídT~~.N-R5E, T11N-R4E, and The Commission has tentatively scheduled a pub- lic hearing on this application for November 1 2005 at 9:00 am at the offices of the Alaska Oil and Gas Co!'servation Commission at 333 West 7th Avenue, SUite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing.b&-' held bY filing a written request with the Commi$"- . sion no later than 4:30 pm on October 14, 2005. If a request for a hearing is not timely filed, the Commission may consider the issuance of an or- der without a hearing. Ta learn if the Cammission will hald the public hearing, please call 793-1221. I n addition, a persan may submit a written pro- test ar written camments regarding this applica- tian ta the Alaska Oil and Gas Canservatian Com- missian at 333 West 7th Avenue, Suite 100 ' Anchorage, Alaska 99501. Written pratest or com: ments must be received na later than 4:30 pm on Octaber 28, 2005 except that if the Commission de- cides to hold a public hearing, written pratest ar camments must be received no later than the con- clusion of the Navember 1, 2005 hearing. If you are a person with a disability who may need special accommodations in order to com- ment or to attend the public hearing, please con- ~~;t2~~~J;,folombie at 793-1221 no later than Octo- STATE OF ALASKA THIRD JUDICIAL DISTRICT Teresita Peralta, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed ~jcv Subscribed and sworn to me before this date: John K. Norman Chairman ADN 1',0# 02614014 Publishéd Date: September 27, 2005 Re: Public Notice . . Subject: Re: Public Notice From: "Ads, Legal" <legalads@adn.com> Date: Mon, 26 Sep 2005 14:40:02 -0800 To: Jody Colombie <jody_colombie@admin.state.ak.us> Hello Jody: Following is the confirmation information on your legal notice. Please review and let me know if you have any questions or need additional information. Account Number: STOF 0330 Legal Ad Number: 614495 Publication Date(s): September 27, 2005 Your Reference or PO#: 02614014 Cost of Legal Notice: $176.32 Additional Charges: Web Link: E-Mail Link: Bolding: Total Cost To Place Legal Notice: $176.32 Your Legal Notice Will Appear On The Web: www.adn.com: XXXX Your Legal Notice Will Not Appear On The Web www.adn.com: Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 On 9/26/05 1:47 PM, "Jody Colombie" <jody colombie@admin.state.ak.us> wrote: Please publish 9/27/05 1 of 1 9/2612005 2:58 PM I 02-902 (Rev. 3/94) PUbliShelginal . Copies: Department Fiscal, Department, Receiving AO.FRM STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO 02614014 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF - ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC 333 West ih Avenue. Suite 100 A n('¡'nr~af' A K qq"()1 907-793-1221 AGENCY CONTACT DATE OF A.O. R o M Jodv Colombie Sentember ?6. ?005 PHONE PCN (907) 793 -17.21 DATES ADVERTISEMENT REQUIRED: T o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 September 27,2005 THE MATERIAL BE1WEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: United states of America AFFIDAVIT OF PUBLICATION REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COpy OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that helshe is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2005, and thereafter for _ consecutive days, the last publication appearing on the _ day of , 2005, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2005, Notary public for state of My commission expires Public Notice Colville River Field and AIO 5.007 (Trading Bay Unit) . . Subject: Public Notice Colville River Field and AIO 5.007 (Trading Bay Unit) From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Mon, 26 Sep 2005 16:26:19 -0800 To: undisclosed-recipients:; BCC: Cynthia B Mciv br <robert _ mintz@law.st <hub bp.com>, <stayl laska.net>, stanekj <roseragsdale@gci.net>, trmjrl <trmjrl <shaneg@evergreen as.com>, jdarli n <j <knelson@petro ews.com>,·c y <c usibelli.com <markdalton@h c.com>, Shannon Donnelly <shannon. do Worcester" <markp.worcester@conocophillips.com>, Bob <wdv@dnr.state.ak.us> fr <tjr@dnr.state.ak.us> bbritch < <mjnelson@purv' h h .o'do <SkilleRL@BP.c J. <RossbeRS@BP. Pospisil <PospisG@ <Mikel.Schultz@BP . <Klep E@BP.com>,' an P <Jaco @BP.com>, ddonkel <ddonkel@cfl.rr.co <barb llmer@conocophillips.com>, bocastwf <boc <barker@usgs.gov>, doug_schultze <doug_schul xtoene <hank.alford@exxonmobil.com>, Mark Kovac 01 <gspfo urorapower.com>, Gregg Nady <gre dy@s <fred. @state.sd.us>, rcrotty <rcrotty@c <dap ska.net>, jroderick <jrod <james.m.ruud@conocophilli Kurt E Olson <kurt_ olson@legi t <mark _ hanley@anadarko.com>, lore <julie_houle@dnr.state.ak.us>, John .org>, Suzan J <suzan _ hill@ .state.ak. us>, tablerk <tablerk@unocal.com>, Br Havelock <be .state.ak.us>, bpopp <bpopp@borough.kenai. <jimwhite m>, "John S. Haworth" <john.s.haworth@ex <marty@ ·al.com>, ghammons <gharnmons@aol.com>, rmcl mkm720 200@aol.com>, Brian Gillespie <ifbmg@uaa.alask u>, <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, G <gary_schultz@dnr.state.ak.us>, e Rancier <RANCI c .ca>, <Bill er@xtoalaska.com>, B on Gagn .c , Paul Winslow <pmwi w@forestoil.com>, Garry Catron < aine Copeland <copelas bp.com>, Kristin Dirks <kristin d aynell Zeman <kjzeman@marathonoil.com>, John Tower e.gov>, Bill Fowler <Bill_Fowler@ ko.COM>, Vaughn S z@rbccm.com>, Scott Cranswick <scott.cranswick mms.gov>, Brad McKim <mckim .com>, Steve Lambe <lambes@unocal.com>, jack newell <jacknewell@acsalaska.net>, James Scherr 10f2 9/26/2005 4:27 PM Public Notice Colville River Field and AIO 5'iTrading Bay Unit) <james _ scherr@yahoo.com>, davi <Tim _ Lawlor@ak.blm.gov>, Lynn <Jerry.C.Dethlefs@conocop· s. crocke a.org, T 1 <Jon. onocoph > <mlewis@brenalaw.com>, Harry <moriarty@aoga.org>, Patty Alfaro <pal <ToddKratz@chevro > Gary Rogers <gary_rogers <Arth poulos@ .ak.us>, Phillip Ayer <pma < rp-inc.co bert <salambert@uno 20f2 . 9/26/20054:27 PM Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 . . Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 North Slope Borough PO Box 69 Barrow, AK 99723 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, 10 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 #1 . Conoc6Phillips . Chris Alonzo Development Supervisor, WNS ConocoPhillips Alaska 700 G Street Anchorage, AK 99501 Phone: 907.276.1215 September 15, 2005 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission Alaska Department of Revenue 333 West th Avenue, Suite 100 Anchorage,AJe 99501 Re: Applications for Area Injection Order(s) for Proposed Nanuq and Nanuq-Kuparuk Oil Pools Colville River Field Dear Mr. Norman: In accordance with 20 AAC 25.460, ConocoPhillips Alaska, Inc. (CPA!) as operator of the Colville River Unit and on behalf of the Working Interest Owners, is requesting an area injection order authorizing enhanced recovery operations in the proposed Nanuq and Nanuq-Kuparuk oil pools. An application for the area injection order(s) is attached. I hope that this information meets your needs and I am available to discuss it with you and your staff if needed. Please call me at 265-6822 or Jack Walker at 265-6268 if you have questions. Very truly yours, ~o;(~~~)9~/-'- Chris Alonzo Development Supervisor, Western North Slope ConocoPhillips Alaska, Inc. Attachments . . Applications for Area Injection Order(s) for Proposed Nanuq and Nanuq-Kuparuk Oil Pools Colville River Field September 15, 2005 Page 2 cc: Alaska Department of Natural Resources Division of Oil and Gas Attention: Mike Kotowski 550 W. ih Avenue, Suite 800 Anchorage, Alaska 99501 Arctic Slope Regional Corporation Attention: Teresa Imm 3900 C Street, Suite 801 Anchorage, Alaska 99503-5963 Kuukpik Corporation Attention: Isaak Nukapigak P.O. Box 187 Nuiqsut, Alaska 99789-0187 Kuukpik Corporation Attention: Lanston Chinn 825 W. 8th Avenue, Suite 206 Anchorage, Alaska 99501 Anadarko Petroleum Corporation Attention: Bill Shackelford 1201 Lake Robbins Drive P.O. Box 1330 Houston, Texas 77251-1330 ConocoPhillips Alaska, Inc. Attention: Matt Elmer ATO 1750 700 W. G Street P.O. Box 100360 Anchorage, Alaska 99510-0360 . . Application to the Alaska Oil and Gas Conservation Commission for the Nanuq Area Injection Order Colville River Field ConocoPhillips Alaska, Inc Anadarko Petroleum Corporation Application to the AO. for the Nanuq Area Injection Order · Colville River Field September 13, 2005 Table of Contents Introduction ......................................................... ............................................................................. 3 20 MC 25.402 (c)(1) Plat of Wells Penetrating Injection Zone....................................................... 4 20 MC 25.402 (c)(2) Operators and Surface Owners within One Quarter Mile of Injection Operations.................................................................................................................... .................... 5 20 MC 25.402 (c)(3) Affidavit of Jack A. Walker Regarding Notice to Surface Owners ................ 6 20 MC 25.402 (c)(4) Description of the Proposed Operation ........................................................ 7 20 MC 25.402 (c)(5) Description and Depth of Pool to be Affected............................................... 9 20 MC 25.402 (c)(6) Description of the Formation....................................................................... 10 20 MC 25.402 (c)(7) Logs of the Injection ..Wells........................................................................ 11 20 MC 25.402 (c)(8) Casing Description and Proposed Method for Testing............................... 12 20 MC 25.402 (c)(9) Injection Fluid Analysis and Injection Rates ...............................................13 20 MC 25.402 (c)( 10) Estimated Pressures.......................................... .......... ............................. 14 20 MC 25.402 (c)(11) Fracture Information ................................................................................. 15 20 MC 25.402 (c)(12) Quality of Formation Water....................................................................... 16 20 MC 25.402 (c)(13) Aquifer Exemption Reference................................................................... 17 20 MC 25.402 (c)(14) Incremental Hydrocarbon Recovery......................................................... 18 20 MC 25.402 (c)(15) Mechanical Condition of Wells Within y.. Mile of Proposed Area.............. 19 List of Fiqures Figure 1 Proposed Area for Nanuq and Nanuq-Kuparuk Oil Pools and Area Injection Order(s) Figure 2 Planned Development Wells for Nanuq and Nanuq-Kuparuk Oil Pools Figure 3 Nanuq Type Log Figure 4 Nanuq-Kuparuk Type Log Figure 5 Nanuq Log Model Figure 6 Nanuq-Kuparuk Log Model Figure 7 Typical Injection Well Schematic Figure 8 Nanuq CD4 Project Simulated Slimtube Recovery Results Attachments Fracture Containment Modeling Nanuq Interval Fracture Contatinment Modeling Nanuq-Kuparuk Interval Nanuk #1 Well Completion Report Nanuk #1 Actual Plug and Abandon Diagram Nanuk #2 Well Completion Report Nanuk #2 P&A Schematic Nanuq #3 Well Completion Report Nanuq #3 Operations Shutdown Final Schematic Nanuq 5 Operational Shutdown Sundry Approval Nanuq 5 Well Schematic After Suspension Page 2 ConocoPhillips Alaska, Inc. Application to the AO. for the Nanuq Area Injection Order · Colville River Field September 13, 2005 Introduction This application seeks Alaska Oil and Gas Conservation Commission endorsement and authorization for the proposed Nanuq CD4 Miscible Water Alternating Gas Project in the Colville River Unit. This project involves the development of two reservoirs from Drill Site CD4: Nanuq and Nanuq-Kuparuk. This application has been prepared in accordance with 20 MC 25.402 (Enhanced Recovery Operations) and 20 MC 25.460 (Area Injection Orders). The proposed Nanuq CD4 Miscible Water Alternating Gas Project is an enhanced oil recovery project, employing the cyclic injection of miscible gas and water, to be implemented for the development of the proposed Nanuq and Nanuq-Kuparuk Oil Pools, which are located within the Colville River Unit on the North Slope of Alaska. The proposed Nanuq Oil Pool includes the Nanuq reservoir within the Torok Formation. The proposed Nanuq-Kuparuk Oil Pool is the deeper reservoir in the Kuparuk River Formation. The proposed Nanuq Oil Pool directly overlies the proposed Nanuq-Kuparuk Oil Pool. Concurrent with this application for an Area Injection Order, ConocoPhillips Alaska, Inc., as operator of the Colville River Unit and on behalf of the working interest owners (WIO's), is seeking Conservation Order(s) by the Commission regarding the classification and rules to govern the development of the proposed Nanuq and Nanuq-Kuparuk Oil Pools. For each proposed oil pool, the working interest owners plan to form a corresponding separate participating area within the Colville River Unit. Preliminary boundaries for the future participating areas are shown on Figure 1 with the present Colville River Unit Boundary. ConocoPhillips Alaska, Inc. as operator and on behalf of the WIO's, plans to apply to the State of Alaska and Arctic Slope Regional Corporation, to form a Nanuq Participating Area and a Nanuq-Kuparuk Participating Area in early 2006. Development drilling is scheduled to commence in October, 2005 at Drill Site CD4, creating the need to establish pool rules and complementary area injection order(s) for the proposed oil pools. Page 3 ConocoPhillips Alaska, Inc. Application to the AOG' for the Nanuq Area Injection Order . Colville River Field September 13, 2005 20 MC 25.402 (c)(1) Plat of Wells Penetratinq Injection Zone The attached map (Figure 2) show all existing wells penetrating the injection zones in the proposed injection area. The maps also show the areal extent of the injection zone relative to preliminary participating areas within the Colville River Unit, and the location of all proposed Nanuq Oil Pool and Nanuq-Kuparuk Oil Pool development wells (injection wells and development wells). Page 4 ConocoPhillips Alaska, Inc. Application to the AOGI for the Nanuq Area Injection Order . Colville River Field September 13, 2005 20 AAC 25.402 (c)(2) Operators and Surface Owners within One Quarter Mile of Injection Operations Operator: ConocoPhillips Alaska, Inc. Attention: Matt Elmer P. O. Box 100360 Anchorage, AK 99510-0360 Surface Owners: State of Alaska Department of Natural Resources Attention: Mike Kotowski P. O. Box 107034 Anchorage, AK 99510 Kuukpik Corporation Mr. Isaac Nukapigak PO Box 187 Nuiqsut, Alaska 99789-0187 Page 5 ConocoPhillips Alaska, Inc. Application to the AOGt for the Nanuq Area Injection Order . September 13,2005 Colville River Field 20 MC 25.402 (c)(3) Affidavit of Jack A. Walker Reç¡ardinç¡ Notice to Surface Owners Jack A. Walker, on oath, deposes and says: 1. I am the Nanuq Production Engineer for ConocoPhillips Alaska, Inc., the operator of the Colville River Unit. 2. On September 15, 2005, I caused copies of the application for the Nanuq Area Injection Order to be provided to the surface owner and operator of all land within a quarter mile of the proposed injection wells as listed below: a. State of Alaska Department of Natural Resources Attention: Mike Kotowski P. O. Box 107034 Anchorage, AK 99510 b. Kuukpik Corporation Mr. Isaac Nukapigak PO Box 187 Nuiqsut, Alaska 99789-0187 c. ConocoPhillips Alaska, Inc. Attention: Matt Elmer ATO-1750 P.O. Box 100360 Anchorage, Alaska 99510-0360 )(~~d U Jack A. Walker STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT) SUBSCRIBED AND SWORN to before me this fifteenth day of September, 2005. NOTAR~~~~~SKA - _....~ ".'''.- -,.- STATE OF ALASKA, ~\II~, NOTARY PUBLIC· ' .1 Carol Kelly ,. ~ My Commi~s¡or1'~~~es ~y~. 16,2008 My Commission Expires: Page 6 ConocoPhillips Alaska, Inc. Application to the AOGI for the Nanuq Area Injection Order . Colville River Field September 13, 2005 20 AAC 25.402 (c)( 4) Description of the Proposed Operation An Area Injection Order is needed to develop the Nanuq and Nanuq-Kuparuk reservoirs. The scope of the development project includes drilling 19 wells from a new Colville River Unit Drill Site CD4. Three wells are planned to develop the proposed Nanuq-Kuparuk Oil Pool and sixteen wells are planned to develop the proposed Nanuq Oil Pool. Development of the proposed Nanuq and the Nanuq- Kuparuk Oil Pools is planned with development wells solely dedicated to a single pool with no subsurface commingling. Unitized substances produced from the proposed Nanuq and the Nanuq-Kuparuk Oil Pools will be commingled on the surface with each other and with substances from the existing Alpine Oil Pool. Similar to the existing allocation of unitized substances for the Alpine Oil Pool, production allocation for the proposed pools will be based on periodic well tests and producing conditions, e.g. up time; and injection allocation for the proposed pools will be based on meters on each injection well. Water alternating with miscible gas injection is the proposed recovery mechanism for both reservoirs. The project scope includes injection of water and enriched hydrocarbon gas from the Alpine Central Facility (UACF"), also located within the Colville River Unit. At the end of the Nanuq CD4 Project miscible gas injection phase, lean gas and/or water may be injected to recover the remaining mobilized oil and injected hydrocarbons. Injection of water is scheduled to begin in late 2006, followed by MI injection beginning in mid-2007. Seven injection wells for the Nanuq reservoir and one injection well for the Nanuq-Kuparuk reservoir are included in the scope of the Nanuq CD4 Project. Surface facilities will be installed at the CD4 drillsite to deliver and meter both MI and water to each injection well. Horizontal development wells will be drilled from Drill Site CD4. For both reservoirs, well layout is a direct line drive pattern configuration with rows of injectors and producers. Planned interwell spacing is 1500 feet for Nanuq and 6,000 feet for Nanuq-Kuparuk. Different well spacing may be implemented if justified after analysis of reservoir performance. Horizontal production holes are planned at 4,900 to 7,100 feet for Nanuq and 4,500 to 6,700 feet for Nanuq- Kuparuk. The Nanuq CD4 surface facilities scope includes a 3.8-mile gravel road to a 9.3- acre gravel pad located south of the ACF. The project includes produced oil, water injection, MI, and gas lift pipelines from the ACF to the Nanuq CD4 drillsite. Drillsite facilities include the following: Production, test, artificial lift, gas injection, and water injection headers; Tie-in slots for 24 wells (including spares) with wellhead shelters; Electrical and instrumentation module with transformers, switch gear, and telecommunications; Test separator; Page 7 ConocoPhillips Alaska, Inc. Application to the AO. for the Nanuq Area Injection Order . Colville River Field September 13, 2005 Emergency shut down (ESD) skid; Water injection line pig receiver; Chemical injection and storage; Wellhead hydraulic panels (in well house); and Lighting, surveillance, and communication equipment. Additionally, tie-ins at the ACF will include a manifold module and associated piping. Powerlines (13.8 kV) will be suspended by messenger cable below the pipelines. CPAI constructed the gravel road from the existing CD1 Airstrip I CD2 access road to the new Nanuq CD4 gravel pad drillsite during winter 2005. Four new pipelines from the ACF at CD1 to the new Nanuq CD4 drillsite will follow the same route as the existing Alpine Sales Line. The approximate length of pipelines from Nanuq CD4 to CD1 is 4.6 miles. The following pipelines from Nanuq CD4 are planned: 14-inch diameter production pipeline 8-inch diameter water injection pipeline 6-inch diameter MI pipeline 6-inch diameter gas-lift pipeline Page 8 ConocoPhillips Alaska, Inc. Application to the AOGt for the Nanuq Area Injection Order . Colville River Field September 13, 2005 20 MC 25.402 (c)(5) Description and Depth of Pool to be Affected Location The proposed Nanuq and Nanuq-Kuparuk Oil Pools are located in the Colville River Unit approximately 4 miles south of the Alpine Central Facility. As shown on Figure 1, the affected area proposed for the Nanuq Area Injection Order is: Umiat Meridian T11 N R4E Sections 1-4, 9-16, 21-28, 33-36 T11N R5E Sections 3-10,15-22, 27-34 T10N R4E Sections 1, 2 T10N R5E Sections 3-6 Pool Definitions The proposed Nanuq Oil Pool is the hydrocarbon-bearing interval between 7,043 and 7,223 feet measured depth in the Nanuk #2 well (Figure 3) and its lateral equivalents. The proposed Nanuq-Kuparuk Oil Pool is the hydrocarbon-bearing interval between 7956 and 7,972 feet measured depth in the Nanuk #2 well (Figure 4) and its lateral equivalents. Pool Descriptions The Nanuq reservoir is a basin floor submarine fan system dominated by lobe- sheet deposits. This reservoir is a Cretaceous age interval within the Torok Formation. The gross Nanuq interval is located between 6138 feet and 6312 feet subsea total vertical depth ("SSTVD"), as shown on the Nanuk #2 Well Log (Figure 5). The northern (distal) edge of the fan is defined by 22 Alpine development and delineation wells. This fan sequence is sand-rich with the majority of the best reservoir quality rock found in the upper part of the interval. In the proposed Nanuq Oil Pool area, approximately 2000 feet of Albian Torok interval overlies the Nanuq sandstone. The Torok interval above the Nanuq sandstone is comprised of interbedded mudstones and siltstones. The Nanuq sandstone is underlain by approximately 400 feet of mudstones, siltstones, and sandstone in the basal Torok interval. Below the basal Torok are shales of the HRZ. The Nanuq-Kuparuk reservoir is a shallow marine transgressive sandstone that lies below the shales of the Kalubik and Kuparuk D interval, and just above the Lower Cretaceous Unconformity (LCU). The Nanuq-Kuparuk gross interval is located below the Nanuq reservoir between approximately 7062-7072 feet SSTVD as shown on the Nanuq #3 well log (Figure 6). Overlying the Kuparuk sand is approximately 280 feet of shale-rich lithology. The lower 120 feet is comprised of dark grey Barremian-aged mudstone of the Kalubik and Kuparuk D intervals. The upper 160 feet is comprised of brown, organic rich shale of the Albian-aged HRZ interval. The Kuparuk sand is underlain by approximately 250 feet of silty, black shale of the Valanginian Miluveach interval. Page 9 ConocoPhillips Alaska, Inc. Application to the AD. for the Nanuq Area tnjection Order . Colville River Field September 13, 2005 20 MC 25.402 (c)(6) Description of the Formation The Nanuq reservoir matrix consists of fine-grain sandstone with interbedded shales of variable thickness. The target net interval is defined by a likely gas-oil contact at 6100 feet SSTVD, and a water-oil contact at 6207 feet SSTVD. Log and core data confirm the oil-water contact. A gas-oil contact, estimated at 6,100 subsea TVD, is based on the oil-up-to in the Nanuk #1 well (6,104 subsea TVD), the CD1-229 (nee NQ1) well test and production log. Porosity averages approximately 16% and permeability averages approximately 5 md. Average water saturation above the water-oil contact is approximately 32%. Analysis of well test fluid from the Nanuk #2 well indicated a reservoir fluid viscosity of approximately 0.47 centipoise, and separator tests yielded solution gas:oil ratio of 920 SCF/STB, and a formation volume factor of 1.46 RB/STB. The crude oil produced during the Nanuk #2 test had a gravity of 39° API. Original reservoir pressure is approximately 2740 psi. Reservoir temperature is 135°F. The Nanuq-Kuparuk reservoir is thin, with a maximum gross thickness of 12 feet observed to date. The Nanuq-Kuparuk reservoir matrix is fine- to medium- grained, quartz-rich sandstone that contains varying amounts of glauconite. The Nanuq-Kuparuk reservoir is similar to the Kuparuk C Sands developed from Drill Site 3S (Palm) in the Kuparuk River Field. The Nanuq-Kuparuk sandstone has these average properties: approximately 22% porosity, 200 md permeability, and 15% water saturation. No gas or water contacts have been identified in the Kuparuk reservoir. Based on combined reservoir fluid samples and subsequent flow tests performed on the Nanuk #2 exploratory well, the crude contained in the Kuparuk reservoir is very similar to that contained in the Nanuq reservoir, with only slight differences in API gravity, solution gas-oil ratio, and bubble point. For numerical simulation modeling purposes, the Kuparuk and Nanuq reservoir fluids were assumed to have the same pressure-volume-temperature (PVT) properties. No gas or water contacts have been identified to date for the Kuparuk reservoir. The original reservoir pressure is approximately 3240 psi. Reservoir temperature is 160°F. Page 10 ConocoPhillips Alaska, Inc. Application to the AOcl for the Nanuq Area Injection Order . Colville River Field September 13, 2005 20 MC 25.402 (c)(7) Loqs of the Injection Wells Typical well logs for proposed injection wells are shown in Figures 3 and 4. Page 11 ConocoPhillips Alaska, Inc. Application to the AO! for the Nanuq Area Injeclion Order . Colville River Field September 13, 2005 20 MC 25.402 (c)(8) Casing Description and Proposed Method for Testinq All underground injection into the proposed Nanuq and Nanuq-Kuparuk Oil Pools will be through wells permitted as service wells for injection in conformance with 20 MC 25.005, or approved for conversion to service wells in conformance with 20 MC 25.280. A typical well schematic is included as Figure 7. The Nanuq Oil Pool and Nanuq-Kuparuk Oil Pool will be accessed from wells directionally drilled from a gravel pad utilizing drilling procedures, well designs, casing and cementing programs consistent with current practices in other North Slope fields. For proper anchorage and to divert an uncontrolled flow, 16-inch conductor casing will be drilled and cemented at least 75 feet below pad. Cement returns to surface will be verified by visual inspection. A diverter system compliant with the Commission requirements may be installed on the conductor. Primary, secondary, and general well control for drilling and completion operations will be performed in accordance with 20 MC 25 Articles 01 and 06. Casing and cementing will be performed in accordance with 20 MC 25.030. Surface casing, cemented to surface, is planned at approximately 2500 feet true vertical depth. Intermediate hole will be drilled to the target formation and production casing will be cemented with the shoe in the target formation. Formation integrity tests are planned after drilling 20 to 50 feet beyond the surface casing shoe and the production casing shoe. The production casing will be cemented with such a volume to protect any significant hydrocarbon zones. Production and injection holes will be horizontally drilled beyond the casing shoe in the target sand. Slotted liners are planned in the production and injection holes for both reservoirs. To prevent hole collapse, blank pipe liners are planned where the production/injection holes cross significant non-pay, shaley intervals. Tubing and packer or other equipment will be run to isolate pressure to the injection interval consistent with 20 AAC 25.412, but the maximum spacing of 200 feet measured depth between the pressure isolation equipment and the top of the injection zone should be waived to accommodate efficient logging of the horizontal injectors. Casing-tubing annulus pressures will be monitored during injection operations in accordance with 20 MC 25.402( e). Automated monitoring of injection rates, tubing and casing-tubing annulus pressures is planned. Significant deviations or aberrations in pressures or rates will be communicated to the Commission. Prior to commencement of injection, each injection well will be pressure tested in accordance with 20 MC 25.412(c). In the event pressure observations or tests indicate communication or leakage of any tubing, casing, or packer, ConocoPhillips will notify the Commission within 24 hours of the observation to obtain Commission approval of appropriate corrective actions. Commission approval will be received prior to commencement of corrective actions unless the situation represents a threat to life or property. Page 12 ConocoPhillips Alaska, Inc. Application to the AO! for the Nanuq Area Injection Order . Colville River Field September 13, 2005 20 MC 25.402 (c)(9) Injection Fluid Analysis and Injection Rates Initially, Beaufort Sea water and miscible injectant (MI) will be injected. Seawater has been tested in core flood studies and was found to be compatible with the proposed Nanuq Oil Pool injection zone. By analogy to the Kuparuk River Unit, seawater is compatible with the proposed Nanuq-Kuparuk Oil Pool injection zone. Later in the field life, produced water will also be re-injected. The anticipated MI composition available from the ACF is: Component Mol Fraction H2O 0.0001 CO2 0.0056 Nitrogen 0.0098 Methane 0.6276 Ethane 0.1106 Propane 0.1560 i-Butane 0.0271 n-Butane 0.0517 Pentanes 0.0095 C6+ 0.0020 Injection rates will be managed based on voidage for both reservoirs. Individual well injection rates will vary according the reservoir properties encountered. Injection of MI and water will alternate in each injection well. The maximum expected and average injection rates are: Maximum MI Rate Average MI Rate Maximum Water Rate Average Water Rate (MSCFD) (MSCFD) (BPD) (BPD) Nanuq 10,000 5,000 5,000 1,000 Nanuq-Kuparuk 16,000 5,000 15,000 5,000 Small amounts of Class II fluids will be blended with seawater and produced water for injection. These Class II fluids include: sump fluid, hydrotest fluid, rinsate generated from washing mud hauling trucks, excess well work fluids, and treated camp waste water. Page 13 ConocoPhillips Alaska, Inc. Application to the AD! for the Nanuq Area Injection Order . Colville River Field September 13, 2005 20 AAC 25.402 (c)(10) Estimated Pressures The MI pressure available from the ACF is expected to be approximately 4000 psi. Due to pressure losses in the distribution system, wellhead injection pressures are expected to be 3800 psi with MI. Injection wells may be choked to lower wellhead pressures to manage injection rate. The seawater injection pressures from the ACF pump discharge are expected to average approximately 2500 psi. Due to pressure losses in the distribution system, wellhead injection pressures are expected to be 2400 psi with water. Injection wells may be choked to lower wellhead pressures to manage injection rate. Page 14 ConocoPhillips Alaska, Inc. Application to the AOGI for the Nanuq Area Injection Order Colville River Field . September 13, 2005 20 MC 25.402 (c)(11) Fracture Information Modeling of the proposed Nanuq Oil Pool indicated injection fluids will remain within the target Nanuq sands. To help refine the Nanuq sand fracture model, a history match the Nanuk #2 well stimulation was performed. Several pre-frac injection tests were conducted prior to the main Nanuk #2 frac. Pressure-rate behavior was analyzed to determine in-situ stress and other reservoir properties. Digital log data from the Nanuk #2 well were processed to estimate elastic properties and in-situ stress. Actual bottom hole pressure and rate data were input to a fracture simulator and the derived rock properties and stresses were used to simulate frac performance of the Nanuk #2 well. The model of the Nanuq #2 stimulation indicated height growth occurred throughout the Nanuq sands. Maximum water injection pressure will exceed the parting pressure of the Nanuq reservoir rock. Under long term water injection conditions at maximum injection pressure, the fracture model indicated that the fractures will not propagate through the shales of the Torok formation above and below the Nanuq reservoir. The proposed Nanuq-Kuparuk Oil Pool Kuparuk C Sand, and the Kalubik and Miluveach shales above and below the Nanuq-Kuparuk are similar to those same intervals in the Kuparuk River Unit (KRU). Extensive analysis and experience with water and gas injection in the KRU at comparable rates and pressures provide evidence that proposed injection in the proposed Nanuq-Kuparuk Oil Pool will not propagate fractures through confining zones. Mechanical properties estimated from the Nanuk #1 and #2 well logs were used with a fracture simulator to model water injection of the proposed Nanuq-Kuparuk Oil Pool. Maximum water injection pressure will exceed the Nanuq-Kuparuk reservoir rock parting pressure. Fracture modeling of long term water injection indicated containment by the Kalubik/Kuparuk D and the Miluveach intervals. Fracture modeling reports are attached. Page 15 ConocoPhillips Alaska, Inc. Application to the AO. for the Nanuq Area Injection Order . Colville River Field September 13, 2005 20 MC 25.402 (c)(12) Quality of Formation Water The formation fluids within the proposed Nanuq Oil Pool includes water below a depth of 6207 ft SSTVD. Formation water was sampled from the Nanuk #2 well during its post frac production test in April, 2000. The Nanuk #2 produced water analysis indicated this composition: Sodium Potassium Calcium Magnesium Bicarbonate Sulfate Chloride 7,000 ppm 150 ppm 200 ppm o ppm 800 ppm o ppm 10,600 ppm An oil-water contact within the proposed Nanuq-Kuparuk Oil Pool has not been observed. Petrophysical evaluations were carried out using the KRU field assumption for water salinity (0.27 ohmm @ 75°F; TDS of 23,000 ppm NaCI) with results very comparable to core data. As an alternative, we also calculated apparent water salinity in the underlying Miluveach shale. Based on the Nanuk #1 well which has better hole and data quality in the Miluveach, standard modeling results in Rwa of 0.124 ohmm @ 160°F, for a salinity of 24,000 ppm NaCI equivalent. Page 16 ConocoPhillips Alaska, Inc. ApplicaOon to the Aoat for the Nanuq Area InjecOon Order · Colville River Field September 13, 2005 20 AAC 25.402 (c)(13) Aquifer Exemption Reference No underground sources of drinking water (USDW's) exist beneath the permafrost in the Colville River Unit area. See Area Injection Order 188 (October 7, 2004) conclusion 3 for a portion of the area of interest for this application: Umiat Meridian T11N R4E Sections 1,2,3,4,5,7,8,9,10,11,12,13,14,15, 16,21,22,23,24,25,26,27; T11N R5E Sections 1, 2, 3,4,5,6,7,8,9,10,11,12,13,14, 15,16,17,18,19,20,21,22,23,24,29,30. Surface casing for all development wells for the proposed Nanuq and Nanuq- Kuparuk Oil Pools are planned within the affected area of Area Injection Order 188. Annular disposal of drilling waste is planned at Drill Site CD4 after authorization under 20 AAC 25.080. Page 17 ConocoPhillips Alaska, Inc. Application to the AO. for the Nanuq Area Injection Order . Colville River Field September 13, 2005 20 MC 25.402 (c)(14) Incremental Hvdrocarbon Recovery The Nanuq CD4 Project will employ a miscible water-alternating-gas ("MWAG") process to maximize ultimate oil recovery by miscible displacement of reservoir fluids. This process consists of a multiple-contact miscible displacement of reservoir oil. The MI contacts oil not swept by water injection, and mixes with that oil so that it becomes mobile. This mobilized oil is then pushed to production wells by subsequent alternating slugs of injected MI and water. Through this miscible displacement process, the residual oil saturation is reduced to very low levels in the swept pore volume, with the mobilized oil displaced to the producing wells. By alternating between the injection of MI and water, gas and water interaction in the pore space improves reservoir sweep efficiency by reducing the effective mobility of the MI. The injected water helps maintain reservoir pressure, retards gravity segregation of the MI, and controls gas channeling. By combining the mobilization of unswept oil by the miscible displacement process with the sweep efficiency enhancement of alternating gas and water injection, the MWAG displacement process results in more than an insignificant increase in ultimate crude oil recovery, compared with waterflood alone. For the Nanuq reservoir, incremental waterflood recovery is expected to be 10 to 15% of original oil in place (OOIP) above primary recovery, and numerical compositional simulation supports an incremental recovery factor over waterflood of 9 to 14% OOIP for the enriched hydrocarbon miscible gas alternating with water (MWAG) process. For the Nanuq-Kuparuk reservoir, incremental waterflood recovery is expected to be 25 to 37% OOIP above primary, and numerical compositional simulation supports an incremental recovery factor of 17 to 25% OOIP for the enriched hydrocarbon miscible gas alternating with water (MWAG) process. Numerical simulation, tuned to laboratory experiments and PVT modeling, demonstrated that the ACF MI composition is miscible with Nanuq and Nanuq- Kuparuk crude oil at initial reservoir conditions, and will significantly reduce residual oil saturations below waterflooding. An equation-of-state ("EOS") fluid model was created and validated against laboratory measurements of the Nanuq crude oil PVT properties. This EOS was tuned to predict the phase behavior of mixtures of crude oil with a variety of hydrocarbon gas compositions. Slimtube simulation results show that ACF MI composition is miscible with Nanuq and Nanuq-Kuparuk crudes, with a minimum miscibility pressure (MMP) of approximately 2400 psi (Figure 8). Based on historical performance, MI composition may vary, such that the MMP may vary from 1900 to 2600 psia. The Nanuq CD4 Project will be operated so that the average reservoir pressure will be maintained at 3000 psi, significantly above the MMP. Page 18 ConocoPhillips Alaska, Inc. Application to the AO! for the Nanuq Area Injection Order . Colville River Field September 13, 2005 20 MC 25.402 (c)(15) Mechanical Condition of Wells Within % Mile of Proposed Area Four wells as shown in Figure 2 penetrate the proposed injection intervals, both Nanuq and Nanuq-Kuparuk within % mile of the the injection area: Nanuk #1, Nanuk #2, Nanuq #3, and Nanuq #5. Reports are attached for each of the four wells. Nanuk #1 and Nanuk #2 have been plugged and abandoned. Nanuq #3 and Nanuq #5 were drilled to total depths beyond the injection intervals, cased and suspended. CPAI plans to apply to the Commission to sidetrack the Nanuq #3 and Nanuq #5 well to use as Drill Site CD4 development wells. All four of the wells penetrating the proposed injection intervals have sufficient mechanical integrity to prevent any flow such as cross flow from an injection interval to other intervals. Several Alpine development wells have bottomhole locations penetrating the Alpine Oil Pool near the proposed Nanuq injection area. But, these Alpine wells penetrate the Nanuq and Nanuq-Kuparuk zones above the production casing shoe, more than % mile from proposed injection wells. Page 19 ConocoPhillips Alaska, Inc. Application to the AOGCC for the Nanuq Area Injection Order September, 2005 Colville River Field Figure 1: Proposed Area for Nanuq and Nanuq..Kuparuk Oil Pools and Area Injection Order(s) J ., .J ... , L J .... ....... ~ ., I .... n__1 Application to the AOGCC for the Nanuq Area Injection Order Colville River Field September, 200S - Figure 2: Planned Development Wens for Nanuq Oil Pool and Nanuq..Kuparuk on Pool - /\ Typical Nanuq Penetration Typical Kuparuk Penetrati n Nanuq #~ t~ I CD4 Pad ~ Injector Producer Application to the AOGCC for the Nanuq Area Injection Order Colville River Field - c o .- ... CO E '- o u. ~ e o I- .a - CO ~ Q) ... C - C" ::J C CO Z y .. September, 2005 Figure 3: Nanuq Type Log Nanuk #2 o GR GAPI Depth 150 MD 1 7020 7040 7060 7080 7100 7120 7140 7160 7180 7200 7220 I [ . 1 7240 ..=- J= 7260 Resistivity OHMM 100 - Top Nanuq . r ¡ ¡ ¡[!~I. \ ¡ LJ I~' I ill Base Nanuq 'I I I II II . I II '~"-'L'l' I ¡ ! Application to the AOGCC for the Nanuq Area Injection Order Colville River Field E u. ~ ~ ~ CO a. ~ ~ Kuparuk D . Interval Kuparuk C Interval E u. .c u CO CD > ~ - .- :IE Figure 4: Nanuq-Kuparuk Type Log Nanuk #2 o ~ GR GAPI 150 Resistivity OHMM 7940 7960 7980 8000 8020 September, 2005 . Top Kuparuk C Base Kuparuk C, (LCU) . Application to the. AOGCC for the Nanuq Area Injection Order Colville River Field Figure 5: Nanuq Log Model Nanuq #2 September, 2005 Application to the AOGCC for the Nanuq Area Injection Order Colville River Field September, 2005 Figure 6: Nanuq..Kuparuk Log Model Nanuk #3 Application to the AOGCC for the Nanuq Area Injection Order Colville River Field Figure 1: Typical Injection Well Schematic J 16" Conductor to 114' 3-14" or 4-14" Cameo DB Nipple at 2000' TVD with differential pressure-controlled SSSV 9-5/8" or 40 ppf L-80 BTC Surface Casing @2500' TVD cemented to surface 3-14" or 4-14" L-80 IBT M tubing Liner top packer and hanger wI PBR Top Reservoir Nanuq @ 6200'TVD Kuparuk @ 7100'TVD L-80 BrC slotted liner September, 2005 Application to the AOGCC for the Nanuq Area Injection Order Colville River Field September, 2005 Figure 8: Nanuq CD4 Project Simulated Slimtube Recovery Results 1 0.9 - 0.8 - 0.7 _u > ~ 0.6- ~ @ 0.5 ~ ~ 0.4- o ~ 0.3 - u 0:: 0.2 0.1 o o , ., ! I I ¡ I ¡ I ¡! I ¡ I I! ! I 1 ¡ 1 I ! I ¡ I 11 j I I 1 I! I I! ¡ I Pressure, psia ..,.. ,~ . . ,~. Fracture Containment Modeling Nanuq Interval Jack Walker July, 2005 Nanuq Interval Fractur~ntainment Modeling . July 2005 Summary Fracturing the Nanuq interval with injection water and miscible injectant was modeled with Mfrac software 1. The Alpine injection system has the capability of exceeding the parting pressure of the Nanuq reservoir rock on both water and gas injection. However, insitu stress contrast is adequate to confine fractures initiated in the Nanuq sands. The modeling indicated that fractures caused by gas injection will not grow throughout the Nanuq interval due to intra-interval stress contrasts. Water injection could fracture the entire Nanuq interval. Upward fracture growth for both water and gas injection will be arrested in the siltstone above the Nanuq sands. On water injection the base of fracture growth will be within 20 feet of the base of the Nanuq interval. Analvsis Mechanical properties were calculated from open hole logs (Ramos 2002)2 and tuned to the actual fracture data collected in Nanuk #2. Nanuk #2 fracture G- function analysis indicated a closure pressure gradient of 0.515 psi/foot (Barree 2004 )3. Instantaneous shut in pressure suggested the fracture extension pressure gradient is 0.555 psi/foot. Based on mechanical property trends, the Nanuk #2 Torok Formation was divided into 18 subintervals between 5830 and 6420 feet subsea, including the productive sands. Mechanical properties were averaged over these subintervals. Figure 1 shows the mechanical properties plotted with depth. At a depth of approximately 6177 feet (true vertical), the fracture closure pressure, or minimum horizontal stress, is 3181 psi and fracture extension pressure is 3428 psi. Maximum surface delivery pressures are expected to be 2400 psi for water and 3800 psi for miscible injectant. Ignoring friction pressure drop, these maximum surface pressures translate into bottomhole injection pressures of 5100 psi and 4700 psi for water and gas, respectively. The injection system is capable of delivering water and gas at pressures exceeding the parting pressure. However, the model indicates that maximum injection pressures will be lower than the maximum facility capacity because permeability of the formation allows leakoff of injection fluid at a high rate. Figure 1 shows the stress gradient, stress, modulus and Poisson's ratio input for the fracturing modeling. 2 .~ ' Nanuq Interval Fracture ·ontainment Modeling July 2005 Figure 1 Mechanical Properties Nanuk #2 Mfrac was run using 1 % KCI water as a substitute for seawater. Miscible injectant properties were created and named MGAS in the Mfrac fluid library. Leakoff was manually based on reservoir and fluid properties4. Permeability, relative permeability and fluid viscosities were taken from Nanuk #2 core and fluid studies. High injection rate (7200 BPD for water, 15 MMCFD for MI) was chosen to model greater than planned injection pressure and greater stress on confining layers than that likely to be encountered during planned operations. The modeled rates are 150% the maximum planned rate. specific injection rate per foot of interval for the vertical well fracture model was approximately more than 50 times greater than the expected specific injection rate of less than 1 BPD perfoot of interval open in the planned horizontal injectors. The much higher than expected rate was modeled as a conservative approach to ensure induced fractures will be confined. Perforations with large flow capacity were chosen to model low pressure drop. A vertical well frac was modeled with 1000 perforations (1" diameter) over the entire Nanuq interval. Water and gas cycles were run at the same injection rate for a cumulative injection volume of million barrels. The fracture geometries with vertical stress profiles are shown in Figures 2 and 3 for the water and gas cases, respectively. 3 ... ~ Nanuq Interval Fracture Containment Modeling Figure 2 Water Injection Case Fracture Geometry Figure 3 MisciblelnjectanfCase Fracture Geometry 4 July 2005 * - . Nanuq Interval Fracture Containment Modeling . July 2005 Conclusions 1. Fracturing the Nanuq sands is possible with the delivery pressure and rate expected to be available at Drill Site CD4. Without choking injection, fracturing will likely occur on water and gas injection. 2. Fracture growth will be confined by the siltstone above the Nanuq sands. 3. The fracture model indicated that fracturing induced by miscible injectant will not grow through inter-lobe mudstones. 4. The fracture model indicated that water fracturing in a vertical well will grow throughout the Nanuq interval and will be arrested in the shaley interval immediately below the Nanuq interval. 1 Meyer & Associates, Version 5.2.1209, Natrona Heights, PA 2 Ramos, R., Nanuk2.mechpro.v2.xls 3 Barree, R. D., "ConocoPhillips Nanuq Fracture Treatment Designs", August 2,2004 4 Gidley, et. aI., Recent Advances in Hydraulic FracturinQ SPE Monograph Volume 12, 1989, pp. 147-157 5 ,. . . . Fracture Containment Modeling Nanuq-Kuparuk Interval Jack Walker July, 2005 . Nanuq-Kuparuk Fracture Containment Modeling . July 2005 Summary Fracturing the Nanuq-Kuparuk interval with injection water and miscible injectant was modeled with Mfrac software 1. The Alpine injection system has the capability of exceeding the parting pressure of the Nanuq reservoir rock on both water and gas injection. However, insitu stress contrast is adequate to confine fractures initiated in the NanuqøKuparuk sands. Analysis Mechanical properties were calculated from open hole logs (Ramos 2002)2. Based on mechanical property trends, the Nanuk #2 Kuparuk River Formation and surrounding shales were divided into 7 subintervals between 6350 and 7330 feet subsea, including the productive sands. Least principle stress and Poisson's ratio were averaged over these subintervals. The modulus was taken from the Nanuk #1 log3. Figure 1 shows the mechanical properties plotted with depth. At a depth of approximately 7092 feet (true vertical), the fracture closure pressure, or minimum horizontal stress, was estimated from logs to be 4111 psi. Maximum surface delivery pressures are expected to be 2400 psi for water and 3800 psi for miscible injectant. Ignoring friction pressure drop, these maximum surface pressures translate into bottomhole injection pressures of 5500 psi and 4800 psi for water and gas, respectively. The injection system is capable of delivering water and gas at pressures exceeding the parting pressure. However, the model indicates that maximum injection pressures will be lower than the maximum facility capacity because permeability of the formation allows leakoff of injection fluid at a high rate. Figure 1 shows the stress gradient, stress, modulus and Poisson's ratio input for the fracturing modeling. 2 Nanuq-Kuparuk Fracture ontaìnment Modeling Figure 1 Mechanical Properties Nanuk #2 July 2005 Mfrac was run using 1 % KCI water as a substitute for seawater. Miscible injectant properties were created and named MGASin the Mfrac fluid library. Leakoff was manually calculated based on reservoir and fluid properties4. Permeability, relative permeability and fluid viscosities were taken from Nanuk #2 core and fluid studies. High injection rate (7800 BPD for water, 17 MMCFD for MI) was chosen to model greater than planned injection pressure and greater stress on confining than that likely to be encountered during planned operations. modeled are 150% of the maximum planned rate. The specific injection rate per foot interval for the vertical well fracture model was approximately more than 50 times greater than expected specific injection rate of less than 1 BPD per foot of interval open in the planned horizontal injectors. The much higher than expected rate was modeled as a conservative approach to ensure induced fractures will be confined. Perforations with large flow capacity were chosen to model low pressure drop. vertical well frac was modeled with 1000 perforations (1" diameter) over the entire Nanuq-Kuparuk interval. Water and gas cycles were run at the same injection rate for a cumulative injection volume of 2.5 million barrels. The fracture geometries with vertical 3 .. /~ ,"" Nanuq-Kuparuk Fracture ontainment Modeling stress profiles are shown inFigures 2 and 3 for the water and gas casés, respectively. Figure 2 Water Injection Case Fracture Geometry Figure 3 Miscible Injectant Case Fracture Geometry 4 tf . Nanuq-Kuparuk Fracture!,tainment Modeling . July 2005 Conclusions 1. Fracturing the Nanuq-Kuparuk sands is possible with the delivery pressure and rate expected to be available at Drill Site CD4. Without choking injection, fracturing will likely occur on water and gas injection. 2. Modelþi(ing indicates that fracture growth will be confined by the Kalubik / D shale above the Nanuq-Kuparuk sands for both water and gas injection 3. Modeling indicates that fracture growth will be confined by the Miluveach shale below the Nanuq-Kuparuk sands for both water and gas injection 1 Meyer & Associates, Version 5.2.1209, Natrona Heights, PA 2 Ramos, R., Nanuk2 Dipole Stress contrast.xls, 2005 3 Chin, L., Enderlin, M~, Ramõs, R., "Rock Mechanics Strength Tests and Analysis Kuparuk Interval, Fiord Alpine Satellite, WNS", May 26,2004 4 Gidley, et. aI., Recent Advances in Hvdraulic Fracturing SPE Monograph Volume 12, 1989, pp. 147-157 5 . STATE OF ALASKA . AlÅSKA Oil AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1 Status of Well Classification of Service Well OIL 0 2 Name of Operator ARCO Alaska, Inc 3 Address GAS 0 SUSPENDED 0 ABANDONED ŒJ SERVICE 0 7 Permit Number P.O. Box 100360, Anchorage, AK 99510-0360 4 Location of well at surface 96-57 8 API Number 50-103-20238 9 Unit or Lease Name 2627' FSL, 869' FWL, SEC 19, T 11 N, R SE, UM At Top Producing Interval NlA 10 Well Number SAME At Total Depth NANUK #1 11 Reid and Pool SAME 5 Elevation in feet (indicate KB, DF, etc.) RKB 38' ABOVE SL 12 Date Spudded 12-Mar-96 17 Total Depth (MD+ TVDI 7630'MD,7630'TVD WILDCAT 13 Date T.D. Reached 19-Mar-96 18 Plug Back Depth (MD+TVD) 16 l.øase Designation and Serial No. ADL 384211 14 Date Comp. , Susp. or Aband. 3-24-96 Abandoned 19 Directional Survey YES ŒJ 115 Water Depth, if offshore 116 No. of Completions NA feet MSL NA I~ Depth where SSSV set 121 Thickness of permafrost . NA feet MD =800' NA NoD 22 Type Electric or Other Logs Run LWD: GR, RES, NEUTRON. DENSITY W/L: DSI, CNT. LDT, GR, RFT. MSCT 23 CASING, LINER AND CEMENTING RECORD SETTING DEPTH MD CASING SIZE wr GRADE TOP BTM HOLE SIZE CEMENrÆCORD 16· 62.58# B SURF 107' 20· 230sx AS I 9.625· 53.5# L-80 SURF 1792' 12.25· 325 SXAS III & 610 SXAS I 24 Perforations open to Production (MD+TVD of Top and Bottom and Interval, size and number) NA 25 SIZE TUBING RECORD DEPTH SET (MD) PACKER SET (MD) 26 ACID, FRACTURE, CEMENT SQUEEZE, ETC DEPTH INTERVAL (MD) I AMOUNT & KIND OF MATERIAL USED See attached operations summary 27 Date First Production Date otTest Hours Tested PRODUCTION TEST ¡Method of Operation (Rowing, gas lift, etc.) .PRODUCTlON FOR OIL-BBL GAS-MCF TEST PERIOD Ë CALCULATED OIL~BBL GAS-MCF 24-HOUR RATE Ë NIA WATER-BBL CHOKE SIZE I GA8-0IL RATIO OIL GRAVITY·API (CO") Flow Tubing Press. o.lng Pressure WATER-BBL 28 CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water. Submit core chips. TO BE SENT UNDER SEPARATE COVER BY EXPLORATION GEOLOGY Form 10-407 Submit In duplicate 29. . 30. . GEa..OOIC MAA<ERS FORMATION TESTS /'WAE MEAS DEPTH TRUE VERT. DEPTH Include interval tested, pressure data, all fluids recovered and gravity. GOR. and time of each phase. TO BE SENT BY EXPlORATION GEOLOOY 31. LIST OF ATTACHMENTS As.auIL TSURVEYS, P&A DIAGRAM, AND DIRECTIONAL SURVEYS AND DALY DRLLlNG REPORTS 32.. I hereby certify that the foregoing is true and correct to the best of my knowlege. ~~ µ~t; TItr. DATE F"" .) --(6.., rt INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska~ Item 1: Classification of Service Wells: Gas injection, water injection, steam injection, air injection, salt water disposal, water supply for injection, observation, injection for in-situ combustion. Item 5: Indicate which elevation is used as reference (where not otherwise shown) for depth measurements given in other spaces on this form and in any attachments. Item 16 and 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 16, and in item 24 show the producing intervals for only the interval reported in item 27. Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval. Item21: Indicate whether from ground level (GL) or other elevation (OF, KB, etc.). Item 23: Attached supplemental records for this well should show the details of any multiple stage cement- ing and the location of the cementing tool. Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water In- jection, Gas Injection, Shut-in, Other-explain. Item 28: If no cores taken, indicate "none". Form 10-407 ./" 1 ./...., \ NANUK #1 ACTUAL PLUG AND ABANDON DIAGRAM CASING CUTOFF 3' BELOW GROUND LEVEL WELL IDENTIFICATION PLATE WELDED TO CASING STUB 16" CONDUCTOR AT 107' RKB ~ ~~ SURFACE CEMENT PLUG 30'-250' ~ ' - ~ BRIDGE PLUG AT 250' 12-114" HOLE ~ ~ '~'.~~( 10.2 LB/GAL MUD '.~~.~.~~.~': ';:;;:. :;;:.;i ESTI MATED TOP OF PLUG #4 @ 1615' ..::.:;.::.:~:::;:::;:::;:::;:::::::;:::;:::::;::;::;;::::::;;:;;::: ~:;'::':;'::j jm~;::~::,;::;;:;;~;~:;;:'dm~1 CEMENT RETAINER AT 1715' ':'::::'::~':;::i~~i~~~~i~~:~i~~~if~i¡{:~i~~:~i¡:~~if~m~i¡{:~r;:':::":i::::,~,j 9-5/8" SUR FA e E eSG AT 1792' R K B BASE OF PLUG #4 @ 1900' ,.::;.:;';.::';.:;';.::';:::';.:;';.::';:::';.::';.::'; . ¡ NOTE: 10.2 PPG KILL WEIGHT : ¡ MUD PLACED BETWEEN ALL PLUGS I : 11 6.2 LBIGAL MUD 1 : I TAGGED TOP OF PLUG #3 @3285' BASE OF PLUG #3 @ 4150' 8-1/2" HOLE . '0:. '.:. ..... "0:. '.:. ..... '0:. '.:. "0:. "0:. '0:. ': ::,:: ::.:: .:.::: ::,:: ::.:: ::.:: ::.:: ::.:: ::.:: ::.:: ::.::: ': :::": :::: ::.:: ::.:: :::': ::.:: ::.:: ::.:: ::.:: ::.:: ::.::. ¡~:~!~~~~SGi~i 3800'-4100' HYDROCARBON RFARING 70NF - K? i h 0.2 LB/GAL MUD I I ESTIMATED TOP OF PLUG #2 @ 5735' ::::'::':::'}::'::':::~::':::'::':::::':::'::':::'::':::::':::::':::'::':: 0: ::.:: ::.:: ::.:: ::.:: ::.:: ::.:: ::.:: ::.:: ::.:: ::.:: ::.:: : j~~~~~~~~~~~, 6145'-6300' ~-ALBIAN ': ::.:: ::.:: ::.:: ::.:: ::.:: ::.:: ::.:: ::.:: :::: ::,:: ::.:: : ': ::,:: ::,:: ::,:: ::.:: ::,:: :::: ::.:: ::.:: ::.:: ::~:: ::.::: ': ::.:: ::~:: ::.:: ::.:: ::.:: ::.:: :.-'~:: ::.:: ::.:: ::.:: ::.:: : ': ::.:: ::.:: ::.:: ::.:: ::.:: ::.:: ::.:: ::,:: ::.:: ::.:: ::.::: ~m~~~mm~m~~m¡ HYmxAR~ r......···..·..····..·..·..··· '''j 7 2 0 0 7 350' :j~::::r:~::j~::::r:::?::~~~?::::{:m:m:r:::::~j - BEARING ZONE. J-4 BASE OF PLUG #1 @ TD 1..;;:;;:;;:;;:;;:;;:;;:;;:;;:;;:;;:. !2;0.:S·~~:.::i:::~·W TD AT 7630' MD BASE OF PLUG #2 @ 6789' TOP OF PLUG #1 @ 6789' ~ ARCTIC-SET CEMENTS E:~n~ CLASS G CEMENT WITH ADDITIVES . FJ 4/13/96 · . (~ STATE OF ALASKA Ç"__- ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 465' FNL, 864' FEL, Sec. 25, T11 N, R4E, UM (ASP: 377335, 5954678) At Top Producing Interval . 1172' FNL, 3718' FEL, SEC 25, T11N, R4E, UM (ASP: 374470,5954017) AtTotal Depth 1172' FNL, 3718' FEL, SEC 25, T11N, R4E, UM (ASP: 374470, 5954017) 5. Elevation in feet (indicate KB, DF, etc.) 16. Lease Designation and Serial No. RKB 28 & Pad 11' ADL 354209 ALK 4700 12. Date Spudded 13. Date T.o. Reached 14. Date Comp., Susp. Or Aband. March 24, 2000 April 1, 2000 5fl12000 Abandoned 17. Total Depth (MD + TVD) 18. Plug Back Depth (MD + TVD) 19. Directional Survey 9112'MD/8241'TVD 9024'MD/8154'TVD YES 0 No 0 22. Type Electric or other Logs Run Neutron/Density/4_phase Resistivity/GR, PEXlCMR, DSI, FMI, RFT, USIT/GRlCCL, CBL 23. CASING, LINER AND CEMENTING RECORD SETTING DEPTH MD TOP BOTTOM Surface 108' Surface 2219' Surface 9105' /' 1. Status of well 0110 Gas 0 2. Name of Operator Phillips Alaska, Inc. 3. Address P. O. Box 100360, Anchorage, AK 99510-0360 4. Location of well at surface Abandoned 0 Service 0 Suspended 0 CASING SIZE 16" 9.625" GRADE B L-80 L-80 12.25" 8.5" Wf. PER FT. 62.5# 53.5# 29# HOLE SIZE 20" 7" 24. Perforations open to Production (MD + TVD of Top and Bottom and interval, size and number) 25. SIZE 7048'-7108' MD 6178'-6238' TVD 7948'-7962' MD 7077'-7091' TVD 5 spf 6 spf Classification of Service Well 7. Permit Number 200-030 1 300-118 8. API Number 50-103-20332-00 9. Unit or Lease Name Colville River Unit 10. Well Number Nanuk #2 11. Field and Pool Exploration 115. Water Depth, If offshore N/A feet MSL 120. Depth where SSSV set NIA feet MD 16. No. of Completions 1 21. Thickness of Permafrost 722' MD CEMENTING RECORD AMOUNT PULLED 200 cu ft. 397 SX AS III LW, 350 sx Class G 198 sx Class G Lead, 245 sx Class G Tail cement plug @ 6707' MD set bridge plug @ 334' RKB TUBING RECORD DEPTH SET (MD) 3.5' 6906' PACKER SET (MD) 6791' 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT & KIND OF MATERIAL USED 7048'-7108',7948'-7962' FRAC: 293550# of 16120 behind pipe with 12 ppa on formation. Left 2450# prop in wellbore bridge plug: 12.75 bblsAS I cement Plug #1: 113 bbls Class G 27. PRODUCTION TEST Date First Production Method of Operation (Flowing, gas lift, etc.) April 19, 2000 Abandoned Date of Test Hours Tested Production for OIL-BBL GAS-MCF 4/19-2412000 133 hrs Test Period> 533 306 Flow Tubing Casing Pressure Calculated OIL-BBL GAS-MCF press. 350 Psi 655 24-Hour Rate> 740 N/A 28. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and pressence of 011, gas or water. Submit core chips. To be sent under separate cover Form 10-407 Rev. 7-1-80 CONTINUED ON REVERSE SIDE WATER-BBL CHOKE SIZE GAS-OIL RATIO 48/64 575 SCF/STB OIL GRAVITY - API (corr) 39° 869 WATER-BBL 935 Submit In duplicate 29. . h- GEOLOGIC MARKERS 30. ~ FORMATION TESTS MEAS. DEPTH TRUE VERT. DEPTH Include interval tested, pressure data, all fluids recovered and gravity. GOR, and time of each phase. NAME RFT Tests: see attachment for details refer to attachment Well bore P&A'd 31. LIST OF ATTACHMENTS Summary of Daily Operations, Directional Survey, Geologic Tops, Time and mud weight chart, memo of abnormal pressure, as-built 32. I hereby certify that the following is true and correct to the best of my knowledge. Signed Tille Exploration DrillinQ Team Leader Date Paul Mazzo/In/ Prepared by Sharon Allsup-Drake INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Item 1: Classification of Service wells: Gas injection, water injection, steam injection, air injection, salt water disposal, water supply for injection, observation, injection for in-situ combustion. Item 5: Indicate which elevation is used as reference (where not otherwise shown) for depth measurements given in other spaces on this form and in any attachments. Item 16 and 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 16, and in item 24 show the producing intervals for the interval reported in item 27. Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval. Item 21: Indicate whether from ground level (GL) or other elevation (DF, KB, etc.). Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, Other-explain. Item 28: If no cores taken, indicate "none". Fonn 10-407 ARca <> Subject 'h I I I± I \J 6.. 'V\ u.. "1 <:... . <e é'tlN ,c;.t1,CNíÞ4L' Calculations CharI (J?/ 4 . J,) (' w. ~ i/ C. Sheet number (ì) of ([) IBY TJ(\ Date r-)¡Ioo . ?}~ W;.',~~..<,~,.,.I<;. 7~ @. ~..~....7 J-:.1. .1/t. j@O,OO~~ ~4 "'I ~ .~P//1-o'-' .·';ZGY I. . . @ J ~~... "7Ç?SZ'/'i/- )-.~~II)~.r:f .' . ¡. t ....;:.... '¿H~?")( ?;ql¡'JIe,oz·~?.f.,ýJf· .! . 1· j.~ "';Z;/./.7x. q%..e..o..Q2J21ø~f.· .....'.; , .~. -9 : 1:'" . 'j . '"... ~." ..~. ". .. .' ·<:..·<1(1-1 ¡...~.o., 0 J.)-I . ~ t J-. r"-~ "', . . .... .+.. .. i l~ ~/ul~>f)l'.L .I.,. µ i --;::. , "i·,-·~··~·~·., ,....~.. .. ".._..."._._".....,,_.,.,. _ _,."..... u~.~... 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'H ..... ... ....... _'. ....... .. , , /" ~l' L '..- . ...... .._.-~LIM.::~~ ~&.Y.1:. .~.t)_..... ~..~ -?X. .'--.....---:z:; ..-.-.-.--.--. -'''' .... . .! .. .. ... ..'~. ~.... . ..~ . ..... >.. ~ ~J... ...... " .. .............................. ....."".. ... .... '':- ' . .. ..' .u ~2 - ...~,-,,_._. 3yl..r;..~..7Ti.iq~0.7a' ...M .'.~:'.:" ... :: .......~..."" X/~~:·..·~~3.-.·:·......_···,·C~·s.. .r.· ,.....7-. Q.'1~; f- , . .. --...~' ...0>.", ..'"...."..~....."..._......"-.NÁVUI....k.l~e·fð'l:~.f.:'". .fD;""" ..7(~~~'~·l{,fJ"[Ç~G;¡';!~'~~~~~~: ~,:=.::~: .u'·'C:.:..:lJ~~ ~ü{6 º ,"U ..... . . .... ......Á~f6Z'6.~J:;¿.:.....m:... -ÄL~,u--,~;(!.T£)e..-- '1.tLZ 'f. ../M,:1.. ,-~' 2~/::"!tþ~~~l__' . : ! :.-,-L/ ! .--'--..: ..... ... 5~~·~',.fe~,/:{4f1:".jJ.Q~1'j;~!:c: .... ..__u~.~...... .,--:-.Juu'--T---.L, . ......... .. ;:e File ri-. . · . ~: ,.\, · ·t·· .....~.~\V {t- . ,.... ."\.' .~.c. /06... ~"""'.'.'~' ..... . . "" . . \.' . .' ,. /. ,.~ Z 2 (.11/ J. lIf'1J!</.!,,',,-; ~. ? 21/"1 -h ?:J:)~ ~.~ .' · C¡IO~~O "". .~~ ".. . ...... c¡r¡"'.f;; ]'C;~/(¡ .L.$~.'Z-····:·: £..-:fce.G; .~.. (Zlq~¡)... C-.......c~..A~d. t.v/:J7fJr.x,A·Ç I . . .. , ·rlv..¡ 3ro $.( CI.~ ..- .~, . "'" ,,, ,-, ..... e ." .~~.. '.- -.. .. ."'. ......_··..M._..___... ..__.~"'_"__'~n~..'." e · .,ø) STATE OF ALASKA .¡ ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1. Status of well Classification of Service Well ollD Gas 0 2. Name of Operator Phillips Alaska, Inc. 3. Address P. O. Box 100360, Anchorage, AK 99510-0360 4. Location of well at surface Suspended ø Abandoned 0 Service 0 2268' FSL, 574' FEL, Sec.24, T11N, R4E, UM At Top Producing Interval 2129' FSL, 703' FWL, Sec. 24, T11N, R4E, UM (ASP: 373664,5957333) At Total Depth 2151' FSL, 95' FWL, Sec. 24, T11N, R4E, UM (ASP: 373056,5957366) 5. Elevation In feet (Indicate KB, DF, etc.) /6. Lease Designation and Serial No. RKB 28 & Pad 15' ADL 380077 12. Date Spudded 13. Date T.D. Reached 14. Date Comp., Susp. Or Aband. 115. Water Depth, If offshore March 1,2001 March 14,2001 3/1712001 suspended N/A feet MSL 17. Total Depth (MD + TVD) 18. Plug Back Depth (MD + TVD) 19. Directional Survey 120. Depth where SSSV set 9112'MD17646'TVD 5155'MD/4225'TVD YES ø No D N/A feetMD 22. Type Electric or Other Logs Run G~e~euYDen~Sornc 23. (ASP: 377669,5957405) 7. Permit Number 201-026/301-059 8. API Number 50-103-20365-00 9. Unit or Lease Name Colville River Unit 10. Well Number Nanuq #3 11. Field and Pool Colville River Unit 16. No. of Completions o 21. Thickness of Permafrost 875' CASING SIZE WT. PER FT. GRADE 16" 62.58# H-40 9.625" 40# L-BO 7' 26# L-80 CASING, LINER AND CEMENTING RECORD SETTING DEPTH MD TOP BOTTOM Surface 117' Surface 1965' Surface 9092' HOLE SIZE 24" 12.25" 8.5" 360 sx AS Lite & 350 $X Class G 460 $X Class G & 200 sx Class G CEMENTING RECORD 320 sx AS I AMOUNT PULLED 24. Perforations open to Production (MD + TVD of Top and Bottom and Interval, size and number) 3.5' TUBING RECORD DEPTH SET (MD)..' 2290' : PACKER SET (MD) N/A 25. SIZE None 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT & KIND OF MATERIAL USED None Date of Test Hours Tested PRODUCTION TEST Method of Operation (Flowing, gas Im,etc.) Suspended OIL ..ßBL GAS-MCF WATER·BBL CHOKE SIZE IGAS-OIL RATIO OIL GRAVITY· API (corr) 27. Date First Production Production for Test Period > Aow Tubing Casing Pressure Calculated press. psi 24-Hour Rate> 28. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and pressence of oil, gas or water. Submit core chips. OIL·BBL GAS-MCF WATER-BBL See Attachments Form 1 Q.407 Rev. 7-1-80 CONTINUED ON REVERSE SIDE Submit In duplicate GEOLOGIC MARkE~ 30. . FORMATION TESTS NAME MEAS. DEPTH TRUE VERT. DEPTH Include Interval tested, pressure data, all fluids recovered and gravity. GOR, and time of each phase. K-3 HRZ K-1 4642' 8152' 8449' Annulus left open - freeze protected with diesel. 31. LIST OF ATTACHMENTS Summary of Daily Operations, Directional Survey, Memo of Abnormal Pressure, As-Built, Core description, Final Schematic 32. I hereby certify that the following Is true and correct to the best of my knowledge. Questions? Call Scott Reynolds 265-6253 - k~ Q,J¿ Title AIDine DrillinQ Team Leader Date S((ø(O( Prepared by Sharon Allsup.Drake INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Item 1: Classification of Service wells: Gas injection, water injection, steam injection, air injection, salt water disposal, water supply for injection, observation, injection for in-situ combustion. . Item 5: Indicate which elevation is used as reference (where not otherwise shown) for depth measurements given in other spaces on this form and in any attachments. Item 16 and 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 16, and in item 24 show the producing intervals for the interval reported in item 27. Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval. Item 21: Indicate whether from ground level (GL) or other elevation (DF, KB, etc.). Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, Other-explain. Item 28: If no cores taken, indicate "none". Fonn 10-407 (I.. ( Colvil1e River Field ( Nanuq #3 Operations Shutdown . RKB-GL=43' &-&'8. x 7" annulus freeze prolBdad wIIh 65 W diesel f:) approx. 1850' MD TOC 0 +/-4300' Me (500' Me above top K2) Top K2 sand at 4830' MD Bottom K2 sand at 5170' MD Stage Tool set @ 5286' MD . TOC 0 +/- 6500' MD (600' Me above 7" RMLSAssy) Top Nanuq Reservoir at 7530' MD Top -Kuparuk Reservoir at 8543' MD Well TD at 9112' MD17645' TVD (+1-19 deg Inc~) Rnal Schematic 5/4/01 ". :. ¡¡. .:. ". ". . .. - ::..::::;~.~'~~.'~~':~";':..:;::.":. ~ /~~.~ WoDhead J ~ ~ 16- Conductor to 117' . . , 1 ~ j 9-öI8" oiO pPt L-80 BTC I Sudace Casing o 1965' MD 11781' TVD cemented to surface ,- ¡. TubiM 'Sul:lended wfth diesel to 2290' MD .......... Completion Tubing Hanger plus 3-1fZ', 9.3Ißt, Tubing to 2290' MD "" ""-' ~ ~~ t .. Top of cement plug @ .----~155' MD 37.8 bbls of 15.8 PPG. Class G emt w/additives Assume 50% excess annular volume. ~ å. ~ ~ ;.¡ -.~ ~~ "" I, N ~ t:: ~ *- f: ~ -,. -'~:' -£,..; t- "'..... 7' RMLS Latch Assembly o 6985' MD 7' RMLS Latch Assembly 08011' MD C .~ .. ª ....... ~ "r." -f::~ .:' 7" 26 ppf L·80 BTC Mod Production Casing @ 9092' MD /7626' TVD @ 19 deg ~j! '.,' . . ... ... '-"'-~ ~:;f:- ...... ......- :-::';: . . STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 1. Type of request: Abandon _ Suspend ~ Alter casing _ Repair well_ Change approved program _ 2. Name of Operator Phillips Alaska, Inc. 3. Address P. O. Box 100360 Anchorage, AK 99510-0360 4. Location of well at surface 2342' FSL, 283' FEL, Sec. 24, T11 N, R4E, UM At top of productive interval At effective depth At total depth 671' FNL, 2451' FWL, Sec. 31, T11 N, R5E, UM 12. Present well condition summary Total depth: measured true vertical Effective depth: 11735 7128 11735 7128 measured true vertical Length 82' 2877' 1 0970' Casing Conductor Surface Production Liner Size 16" 9.625" 7" Perforation depth: measured No perforations true vertical No Perforations Tubing (size, grade, and measured depth 4.5" Kill string @ 3038' Packers & SSSV (type & measured depth) No packers, No SSSV 13. Attachments Signed Chip Alvord ~ r:: OcR. Operational shutdown ~ ,( ì Plugging _ \.[!) Pull tubing _ 5. Type of Well: Development _X Exploratory _ Stratigraphic _ Service (asp's: 377961, 5957475) (ASP: 380560, 5949139) Re-enter suspended well_ Time extension Stimulate Variance Pertorate 6. Datum elevation (DF or KB feet) 32' RKB feet 7. Unit or Property name Other Colville River Unit 8. Well number Nanuq 5 9. Permit number / approval number 202-042 10. API number 50-1 03-20414-00 11. Field I Pool N/A feet Plugs (measured) feet feet Junk (measured) feet Cemented Measured Depth 11 cu yds Portland Type C 114' 340 sx AS Lite & 240 sx Class G 2909' 158 sx Lit¡¡Crete, 69 sx LiteCrete 11002' App,",,'" by o<de, of the Comm''''~" ~ ~ ~JL 1 C AT E Form 10-403 Rev 06/15/88 . , Oil Title: Drilling Team Leader True vertical Depth 114' 2393' 7708' RECEIVED MAY 1 4 2002 Alaska Oil & Gas Cons. Gorrumsslor. Anchorage Gas Suspended _XX Description summary of proposal _X Detailed operations program _ BOP sketch I Refer to attached moming drilling report for LOT test, surface cement details and casing detail sheets, schematic _ 14. Estimated date for commencing operation 15. Status of well classification as: May 6, 2002 16. If ~~sal was~erballY proved ~. '\~I~CO) Name of~r ~ate approved Service 17. I hereby certify that th¡¡ for¡¡going is tru¡¡ and cörr¡¡ct to the best of my knowledge. Questions? Call Vem Johnson 265-6081 Date 5(12....(-:>2- Prepared bv Sharon Allsup-Drake FOR COMMISSION USE ONLY Conditions of approval: Notify Commission so representative may witness Plug integrity _ BOP Test Location clearance_ Mechanical Integrity Test _ Subsequent form required 10- 40 '-\ I Approval nof· .I I - 02.-1',. t ~ /I~~v""'¿ Date '1-//11 () ~ Commissioner SUBM'T IN TR'PUCATE ~ STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS ~ (_HO . ( P.O. Box 100360 Anchorage, AK 99510-0360 4. Location of well at surface: 2342' FSL, 283' FEL, Sec. 24, T11 N, R4E. UM At top of productive interval: (asp's: 377961, 5957475) Stimulate_ Plugging _ Perforate _ Alter casing _ Repair well_ Other _ 5. Type of Wel!: 6. Datum of elavation (DF or KB feet): Development L. 32' RKB Exploratory -:. 7. Unit or Property: Stratagrapic -:. Service . Colville River Unit 8. Well number: Nanuq 5 9. Permit number/approval number: 202-042/ 10. API number: 50-103-20414-00 11. FleldIPool: NIAI 1. Operations performed: Operation Shutdown _)0 Pull tubing _ 2. Name of Operator: Phillips Alaska, Inc. 3. Address: At effective depth: At total depth: 671' FNL, 2451' FWL, Sec. 31, T11N. R5!, UM 12. Present well condition summary (ASP: 380560. 5949139) Total Depth: measured true vertical 11735' 7128' Plugs (measured) Effective Depth: measured true vertical 11735' 7128' Junk (measured) Casing Length Size Conductor 82' 16" Surface 2877' 9.625" Production 10970' 7" Liner Cemented 11 cu yds Portland Type C 340 ax AS UIII & 240 ax Class G Measured depth 114' 2909' True vertical depth 114' 2393' 158 ax LlteCrete, 69 ax LlteC,et. 11002' 7708' Perforation Depth measured No perforations true vertical No Perforations Tubing (size, grade, and meesured depth) 4.5" Kill string @ 3038' Packers and SSSV (type and measured depth) No packer, No SSSV 13. Stimulation or cement squeeze summary Intervals treated (measured) NIA Intervals treated (measured) 14. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation NIA Subsequent to operation NIA 15. Attachments 116. Status of well classification as: Copies of logs and Surveys run _ Daily Report of Well Operations _ Oil_ Gas _ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Signed .A I L ~ Title: Alpine Drilling Team leader ~iPAlvord Form 10-404 Rev 06115/88 Suspended -'<X Service Queslfons? Call Vem Johnson 265-6081 Date "5( 12..1 ¡:1 L- Prepared by Sharon Allsup-Drake SUBMIT IN DUPLICATE . . ¡. Nanuq 5 Well Schematic After Suspension .-- FMC Gen. V Wellhead 16" Conductor to 114' Updated 7/13/05 9-518" 40 ppf L-80 BTC Surface Casing MD/2393' TVD cemented to surface "" 4-% tubing circulation string to 3038' MD with diøseJ cap and brine from 3038'-6297' MD TOC @ 6550' MD (500' MD above top K2) Completion Tubing Hanger 4-%", 12.6 ppf IBTM tubing WEG (+1- 57.2°) .MD .DlQ 32' 32' 3038' 2464' Stage Tool set @ 6297' MD 81 bbls of 11 PPG lite Crete cement w/additives Assume 75% excess annular volume. Top K2 sand at 6050' MD Bottom K2 sand at 6160' MD Top of Cement @ 8950' MD 7" RMLS Latch Coupling at 9665' and 9163' Note: 6.140"ID (Baker-Ioc connection) Nanuq @ 9950' MD Kuparak @ 11608' MD 7" 26 ppf L-80 BTC Mod Production Casing @ 11 003'MD 1 7708'TVD @ 57.60 . . Jordan F. Wiess, on oath, deposes and says: 1. I am the Nanuq Development Coordinator for ConocoPhillips Alaska, Inc., the operator of the Colville River Unit. 2. On August 17, 2005, I caused copies of the request for the classification of the Nanuq and Nanuq-Kuparuk reservoirs and prescription of rules for development and operation to be provided to the royalty interest owners and other working interest owner: a. Anadarko Petroleum Corporation Bill Shackelford P.O. Box 1330 Houston, Tx 772551-1330 b. Arctic Slope Regional Corporation Teresa Imm 3900 C Street, Suite 801 Anchorage, Alaska 99503-5963 c. Department of Natural Resources Division of Oil and Gas Mike Kotowski 550 West ih Avenue, Suite 800 Anchorage, Alaska 99501 ¿tJtJ (JJ Jordan F. Wiess STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT) SUBSCRIBED AND SWORN to before me this fifteenth day of September, 2005. STATE OF ALASKA /~\i@" NOTARY PUBLIC ~ Carol Kelly ~~ My Commission Ð:p"iresAug, 16,2008 /a#tPÞ exdLu NQtARY BUBLlC ;j~U1F?RALASKA My Commission Expires: vLh¿¡401 It,.) ..("08 Rr::~E"/I::O OCT <1 l005 Alaska vú;"'ii ;,;.,~",Hi~i'~ ;~)'~jL;;~~¡~S'on AnCtlCiiaue . . Jack A. Walker, on oath, deposes and says: 1. I am the Nanuq Production Engineer for ConocoPhillips Alaska, Inc., the operator of the Colville River Unit. 2. On August 11, 2005, I caused copies of the request for the classification of the Nanuq and Nanuq-Kuparuk reservoirs and prescription of rules for development and operation to be provided to the surface owner of all land within the proposed development area: a. Kuukpik Corporation Mr. Isaac Nukapigak PO Box 187 Nuiqsut, Alaska 99789-0187 b. Kuukpik Corporation Mr. Lanston Chin 825 W. 8th Avenue Suite 206 Anchorage, Alaska 99501 /\~d/~ U Jack A. Walker STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT) SUBSCRIBED AND SWORN to before me this fifteenth day of September, 2005. STATE OF ALASKA ,"'"'" /'~" 11 -:;TARY PUBLIC - . ' NOTAR'(PUB~ÂN: ~'rASKA Carol Kelly " ~ My Commission Expires: ,LJu.¿¡l/~f I~I ~g My Commission E~~~.:s Aug. 16.2008 '-" . - - [J REr:~I"~f) OC-I 4 l005 Ala$k;l Dil & li¡j~ Am:hQ(3Q~