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CO 187
Ima a Pro'ect Order File Cover"~a e J 1 g 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. Order File Identifier Organizing (aone> RESCAN ^ Color Items: ^ Greyscale Items: ^ Poor Quality Originals rwo.,a,a uuirii uuiuu DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: ae,~a.~ee<en uuuuuiuiii OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Other: ^ Logs of various kinds: NOTES: ^ Other:: BY: Maria Date: /s/ Project Proofing II I II ~I I I I ~ III I ~ II I BY: Maria Date: i~ /~3 ~ ©~ /s/ '/ Scanning Preparation x 30 = + =TOTAL PAGES ~ I (Count does not include cover sheet) BY: Maria Date: L,~.' ~3 ~ ~ g /s/ Production Scanning Stage 1 Page Count from Scanned File: ~$ (Count does include cover sh t) Page Count Matches Number in Scanning Preparation: YES NO BY: Maria Date: ~ ~,,,3 ~ Q V /s/ ~ F fff V '' F Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. III II II II III II I II ReScanned III IIIIII IIIII II III BY: Maria Date: /s/ Comments about this file: Quality Checked III I'lll III III III 10/612005 Orders File Cover Page.doc M • INDEX CONSERVATION ORDER NO. 187 1) September 22, 1982 AOGCC Interoffice Memorandum re: ARCO WAG Application 2) October 14, 1982 AOGCC Interoffice Memorandum re: ARCO WAG Modeling 3) November 3, 1982 AOGCC Interoffice Memorandum re: Determination of Oil Saturation from Gas Flooding, Sadlerochit 4) January 31, 1983 1St semi-annual report for FS-3 5) May 31, 1983 Press Release: Fire Damages Prudhoe Bay Facility 6) May 31, 1983 Press Release: Flow Station 3 Damage Less than Early Estimates 7) July 26, 1983 2nd semi-annual report for FS-3 8) August 5, 1983 Letter from AOGCC to ARCO re: semi-annual report for FS-3 9) August 1 1, 1983 Letter from ARCO re: request to flare 10) September 14, 1983 AOGCC Interoffice Memorandum re: FS-3 Project, Conservation Order Exceptions 11) Apri121, 1986 Standard Alaska Production Company's letter to AOGCC 12) May 6, 1986 Letter from AOGCC to operator re: injection well surface shut-in equipment 13) July 28, 19$6 Standard Alaska Production Company's letter re: injection well surface shut-in equipment 14) May 17, 1988 ARCO Alaska Inc.'s request for amendments FS-3 injection project CONSERVATION ORDER NO. 187 i f STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: IN THE MATTER OF APPLICATION) BY ARCO ALASKA, INC. on be- ) half of the Prudhoe Bay Unit) working interest owners for ) the approval of the Prudhoe ) Bay Unit Flow Station 3 ) Injection Project as a ) Qualified Tertiary Recovery ) Project for purposes of the ) Crude Oil Windfall Profit ) Tax Act of 1980. ) Conservation File No. 187 DECISION IN THE MATTER OF SUBJECT APPLICATION DATED: November 29, 1982 Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska. 99501 Conservation File No. 187 ~ Page 1 INTRODUCTION By letter dated September 23, 1980, the Honorable Jay S. Hammond, Governor, advised the Honorable W. Michael Blumenthal, Secretary of the Treasury, of his appointment of the Alaska Oil and Gas Conservation Commission as .the jurisdictional agency over applications involving tertiary recovery projects on land within Alaska not under .federal .jurisdiction. The letter notification fulfilled the responsibility of the Governor of Alaska to provide a written submittal of agency designation in accordance with Section 4993(d)(5)(A) of the Internal Revenue Code promulgated from the Crude Oil Windfall Profits Tax Act of 1980. August 31, 1982 the Alaska Oil and .Gas Conservation Commission in its capacity as the designated jurisdictional agency received from ARCO Alaska, Inc. on behalf of the Prudhoe Bay Unit working interest owners an application for approval of their Prudhoe Bay Unit Flow Station 3 Injection Project as a qualified tertiary .recovery project for purposes of the Crude Oil Windfall Profit Tax Act of 1980. ARCO Alaska, Inc. further requested under AS 31.05.060 that a public hearing be held on their application. Notice of public hearing was published in the Anchorage Times on November 3, 1982. A public hearing was held in the Quadrant Room of .the Captain Cook Hotel. in .Anchorage on November 19, 1982. The applicants testified in support of their application. There was no testimony offered in opposition to application. Hearing proceedings are a matter of_public record. The application and supporting engineering data are part of the record. The record on this matter was closed 11:45 AM AST November 19, 1982. The record is available for review by the. public at the Commission's library, .3001 Porcupine Drive, Anchorage, Alaska. FINDINGS 1. The Prudhoe Bay Unit Flow Station 3 Injection Project is confined to 3650 acres overlying a portion of the Prudhoe Oil Pool and contained 440,.000,000 STB of original oil in-place or approximately 2°~ of the-original oil in-place for the entire Prudhoe Oil Pool of the Prudhoe Bay Unit, a Department of Energy property. 2. The boundaries of the 3650 acre project area in the plan view are defined by the outer producing: wells of inverted nine spot injection patterns to the east and west (strike direc- tion of the Prudhoe. Oil Pool); by the limit. of development wells. to the south (downstructure) and by the seven water injection wells to the north (upstructure). 3. The project boundaries view are provided by the Shublik and the immobile Heavy Oil/Tar Z~ the project the entire .light oil Sadlerochit Reservoir which lies project area. in a vertical or cross-sectional formation (caprockJ at the .top one at the base thus subjecting to column of that portion of the within the boundaries of the Conservation File No. 187 • Page 2 4. The Prudhoe Bay Unit Flow Station 3 Injection Project involves the alternating injection of enriched natural gas and water (WAG process) into eleven (11) inverted nine spot injection wells, all within. the .project area. Further the project involves forty-two (42) producing wells within or on the perimeter of the project area and seven (7) upstructure water injection wells along the northern perimeter of the project area. 5. Produced natural gas will be enriched with ..intermediate hydrocarbons to ..achieve an injectant fluid with a mole percent composition which approximates 42z~ methane, 122 carbon dioxide, 42Z~ intermediate hydrocarbons (C2-C6) and 22o heavier hydrocarbons. 6. Theory indicates and laboratory bench testis confirm that the planned injectant fluid will be miscible with Sadlerochit crude at reservoir temperature and pressures greater than 3700 psi. 7. Reservoir .pressure. within the project area exceeds 3900 psi. Production and injection rates shall be controlled during the project life to offset reservoir voidage by injected volumes thus insuring .that. miscible pressures are .maintained within the project area. 8. The projected Prudhoe Bay Unit crude oil production rates insure an adequate supply.. of intermediate hydrocarbons for gas enrichment to provide sufficient volumes of miscible fluid injectant to excede 10g of the reservoir pore volume within the. project area. 9. Delay of miscible fluid injection until later in the field's productive life or following a conventional waterflood (secondary) program will jeopordize realization of additional oil recovery due to .declining supply of .intermediate hydrocarbon production necessary for adequate gas enrichment to .achieve miscibility. 10. Testimony by the major working interest owners discloses that reservoir simulation model predictions indicate an additional 24,000,000 STB of .crude oil will be recovered from the project area than other wise .would be recovered by $0 acre well spacing and conventional. (secondary} wate`rflooding. The 24 million barrels represents approximately 5.5~ of the original oil in-place within the project area. 11. ARCO Alaska, Inc. as operator. plans to commence injec- tion of enriched natural gas into the project area around January 1, 1983. CONCLUSIONS 1. The Prudhoe Bay Unit Flow Station 3 Injection Project qualifies as a qualified tertiary enhanced recovery project Conservation File No. 187 • Page 3 within the meaning of Section 212.78(c)(1) of the Department of Energy (DOE) regulations in effect on June 1, 1979 and as amended August 30, 1979. 2. The delineation and planned operations for the Prudhoe Bay Unit Flow Station 3 Injection Project area ensure that the project-area can effectively be treated as a separate property withi an established DOE .property for incremental oil purposes (IRC ~ 4993 (c)(2)(C) and (d)(3)). 3. The project beginning date is after May 1979 (IRC S 4993 (c)(2)(B)). 4. The Prudhoe Bay Unit Flow Station 3 Injection Project involves the application of a tertiary recovery method that is in accordance with sound engineering principles and is expected to result in more than an insignificant increase in the amount of crude oil than otherwise would be ultimately recovered. (IRC 5S 4993(c)(2)(A)) 5. The Alaska Oil and Gas Conser ation Commission is the appropriate jurisdictional agency (IRC ~ 4993 (d)(5)(A)(i)) to determine whether the Prudhoe Bay Unit Flow Station 3 Injection Projection qualifies as a qualified tertiary recovery project. DECISION The Alaska Oil and Gas Conservation Commission approves the Prudhoe Bay Unit. Flow Station 3 Injection Project as a qualified tertiary recovery method eeting the .requirements of subparagraphs (A), (B), and (C) of IRC ~ 4993(c)(2) for purposes. of the Crude Oil Windfall Profit Tax Act of 1980. DONE at Anchorage, Alaska. and dated November 29, 1982. 4'~~p, ®~~ ~ ~ y c~,i,A!~ ~ ~ ~~ a I << '~ (Z - _ ~ ~" p /(/% ~~ G~. ~~ Harry W Kugler, ommissioner Alaska Oil and G s Conservation Commission Alaska Oil and Gas Conservation Commission Alaska Oil and Gas Conservation Commission r • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: REQUEST FROM ARCO ALASKA, ) INC. AND STANDARD ALASKA ) PRODUCTION COMPANY to amend ) Conservation File 187 to ) Conservation File No. 187.1 accommodate planned ) operating modifications ) to the Flow Station 3 ) Injection Project. ) DECISION IN THE MATTER OF AMENDMENTS TO CONSERVATION FILE N0. 187 DATED: January 26, 1987 Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Conservation File~lo. 187 January 26, 1987 Page 2 INTRODUCTION By letter dated December 8, 1986 with supporting exhibits attached, ARCO Alaska, Inc., on behalf of the Prudhoe Bay Unit (PBU) Working Interest Owners, advised the Alaska Oil and Gas Conservation Commission of their intention to modify operation of the Flow Station 3 Injection Project (FS-3IP), and requested amendments to the findings of Conservation File No. 187 that would appropriately document for the record the planned modifications . Upon its own motion, the Commission on December 12, 1986 heard representatives of ARCO Alaska, Inc., Standard Alaska Production Company, and Exxon regarding plans to modify operation of the FS-3IP. Data supporting the viability of planned modifications were presented along with additional exhibits. Messrs. Harris' and Youngren's December 17, 1986 letter to Chatterton transmitted a summary, of the substantive matters covered by the December 12, 1986 meeting. FINDINGS 1. With commissioning of the Central Gas Facility (CGF), operation of the FS-3IP process module will be shut down. Miscible injectant requirements for the FS-3IP will be supplied by the CGF. 2. Extensive bench tests conducted subsequent to the FS-3IP November, 1982 hearing support a newly developed minimum miscible pressure (MMP) correlation which results in assurance that a miscible injectant can be achieved over a broader range of compositions and pressures than earlier experiments indicated. 3. Required (FS-3IP) operating data periodically submitted. to the Commission provide all the information necessary for assurance that injectant composition is miscible at the prevailing reservoir pressure. 4. Improved structural control from wells drilled subsequent to the November, 1982 hearing indicate a revised total pore volume for the FS-3IP of 927 MMRB containing 391 MMSTB of OOIP. Conservation File'No. 187 January 26, 1987 Page 3 CONCLUSIONS 1. The documents listed below are appropriate addenda to the November 19, 1982 hearing record on the FS-3IP application. a) A November 24, 1986 letter with attachments to Chatterton from Messrs Foster & Abraham, subject "Request for Amendments". b) A December 8, 1986 letter with attachments to Chatterton from H. P. Foster, subject "modifications to Flow Station 3 Injection Project operations". c) A December 17, 1986 letter with attachments to Chatterton from Messrs. Youngren and Harris, subject "Documentation of the December 12, 1986 Meeting". 2. Planned modifications to FS-3IP operations will not alter the project's status as a qualified tertiary recovery project. DF.CTSTnN The Alaska Oil and Gas Conservation Commission endorses the planned modifications, and continues to approve the PBU FS-3IP as a qualified tertiary recovery project meeting the requirements of subparagraphs (A), (B), and (C) of IRC §4993(c)(2) for purposes of the Crude Oil Windfall Profit Tax Act of 1980. DONE at Anchorage, Alaska and dated January,, 1987. ®I C. V. Chatterton, h rman ~~~j'" ~' -~~,~ Alaska Oil and G Conservation Commission w ~~ ~~ ~ ~a ~ ti .~-=ta ~ ~ ttl r~ ~ ~~ ,~ N~~~~ 4M ~ ~ ~~~ ~rlox co~~ I E ~; LOnnle L. 5mlt(~1, (:Omm1SSlOner Alaska Oil and Gas Conservation Commission V-~ • !~-~ • ~- W. W. Barnwe Commissioner Alaska Oil and Gas Conservation Commission i STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: REQUEST FROM ARCO ALASKA, ) INC to amend Conservation ) File 187 to accommodate ) planned operating modifi- ) Conservation File No. 187.2 cations to the Flow Station ) 3 Injection Project. ) DECISION IN THE MATTER OF AMENDMENTS TO CONSERVATION FILES N0. 187 & 187.1 DATED: July 12, 1988 Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Conservation File No. 187.2 July 12, 1988 Page 2 INTRODUCTION On November 29, 1982, the Alaska Oil and Gas Conservation Commission issued Conservation File 187 which approved the Flow Station 3 Injection Project (FS31P) as a qualified tertiary recovery project meeting the requirements of subparagraphs (A), (B), and (C) of Section 4993(c)(2) of the Internal Revenue Code of 1986, as amended. On 3anuary 26, 1987, the AOGCC issued Conservation File 187.1 amending the original Conservation File 187. By letter dated May 17, 1988 with supporting exhibits attached, ARCO Alaska, Inc, on behalf of the Prudhoe Bay Unit (PBU) Working Interest Owners, advised the Alaska Oil and Gas Conservation Commission of their intention to modify operation of the Flow Station 3 Injection Project, and requested amendments to the findings of Conservation Files No. 187 & 187.1 that would appropriately document for the record the planned modifications. Upon its own motion, the Commission on June 1, 1988 heard representatives of ARCO Alaska, Inc, Standard Alaska Production Company, and Exxon Corporation regarding plans to modify operation of the FS-3IP. Data supporting the viability of planned modifications were presented. Messrs Scheve's and Tyler's letter to Mr Chatterton dated June 8, 1988 transmitted a summary of the substantive matters covered by the June 1, 1988 meeting. The findings and conclusions set forth below are amendments of and supplemental to Conservation Files 187 and 187.1. The findings and conclusions set forth herein supersede those con- tained in Conservation Files 187 and 187.1 only to the extent that they differ from earlier actions of the Commission in this matter. FINDINGS 1. As modified, the area affected by the project in a vertical or cross-sectional view is: (a) For nine patterns, the Kingak shale (cap rock) at the top and the immobile Heavy Oil/Tar Zone at the base. The intermediate Shublik interval is not included in the project area. (b) For the remainder of the project area, the Shublik formation at the top and the immobile Heavy Oil/Tar Zone at the base. Conservation File No. 187.2 July 12, 1988 Page 3 Thus, the project encompasses the entire light oil column of the Sadlerochit interval of the Prudhoe Oil Pool which lies within the boundaries of the project area and the light oil column of the Sag River interval of the Prudhoe Oil Pool which lies within nine designated patterns of the Project Area, each of which are bounded by the outer producing wells of the inverted nine-spot injection patterns as detailed by Exhibits 4 & 5 of the Operator's May 17, 1988 correspondence. 2. The reservoir pore volume of the project area is increased to approximately 992 million reservoir barrels (MMRB) from 927 MMRB. The project area will require an average equivalent of approximately 41 million standard cubic feet per day (MMCFD) of miscible injectant (up from 38 MMCFD) to achieve a 10~ pore volume over the project life. Expected supplies of miscible injectant from the Central Gas Facility are sufficient to supply this rate for the expanded project area. 3. The original oil-in-place of the revised Flow Station 3 Injection Project Area was approximately 410 million stock tank barrels compared to the 1987 approximation of 391 million. CONCLUSIONS 1. The documents listed below are appropriate addenda to the administrative record established for the Flow Station 3 Injection Project: a) A May 17, 1988 letter, with attachments to Mr Chatterton from Mr Foster, subject "Request for Amendments". b) A June 8, 1988 letter from Messrs Scheve and Tyler documenting the June 1, 1988 meeting. 2. The Central Gas Facility will provide sufficient volumes of miscible injectant for the Flow Station 3 Injection Project, as now planned, to meet requirements of a qualified tertiary recovery project. 3. The planned operations for the revised Prudhoe Bay Unit FS3IP ensure that the project can effectively be treated as a separate property which is adequately delineated within an established DOE property for incremental oil purposes. Conservation File No. 187.2 July 12, 1988 Page 4 DECISION The Alaska Oil and Gas Conservation Commission endorses the planned modifications, and continues to approve the PBU FS3IP as a qualified tertiary recovery project meeting the requirements of subparagraphs (A), (B), and (C) of Section 4993(c)(2) of the Internal Revenue Code of 1986, for purposes of the Crude Oil Windfall Profit Tax Act of 1980. DONE at Anchorage, Alaska and dated July 12, 1988. $~A ®I L ~,d y ~ .. ~ , C V atterton, C a' m Alaska Oil and Gas Con ation Commission Q ~ ~_ ~ ~ O ~N~_ ..~ ~ 5,M '~> , .. ~~~ ~~~r1oN ~o~ n i Lonnie C Smith, on~ssioner Alaska Oil and as Conservation Commission W ~/ w w narnwetl, commissioner Alaska Oil and Gas Conservation Commission ~k14 ARCO Alaska, Inc. • Post Office Box 100360 .Anchorage, Alaska 99510-0360 Telephone 907 265 6513 H. P. Foster, Jr. Senior Vice President May 17, 1988 I cc~;ti?rn- Ed~S j~l~„7 ~~_~t~~ a Ede _-. _ - _ ~~ ~.z~^1 ~~ ~~~ -- Mr. C. V. Chatterton ST~T7~Cf- Alaska Oil and Gas Conservation Commission ~ T T~~H 3001 Porcupine Drive ~ F1L~E Anchorage, AK 99501-3192 Re: Request for Amendments - Flow Station 3 Injection Project Conservation Files 187 and 187.1 Conservation Orders 186 and 223 Administrative Approval 223.1 Dear Mr. Chatterton: ARCO Alaska, Inc. (ARCO), as operator of the Flow Station 3 Injection Project (FS-3 IP) and on behalf of the Working Interest Owners of the Initial Participating Areas in the Prudhoe Bay Unit, requests that the AOGCC amend the captioned Conservation Files, Conservation Orders and Administrative Approval to accommodate enlargement of the FS-3 IP. The purpose of the proposed amendments is to obtain the AOGCC's continued approval of the FS-3 IP as a "qualified tertiary recovery project" under Section 4993 of the Internal Revenue Code of 1986, as amended. The proposed change to the Project Area is the addition of the Sag River interval to the vertical delineation of nine of the 11 water-alternating-gas (WAG) injection patterns in the Project. The application attached as Enclosure A (the "Application") provides a discussion of the requested changes and their justification. This Application contains true and accurate information regarding the Project and is intended to be included as part of the administrative record of the AOGCC's review of this matter. Although the requested changes to the Conservation Files affect the details of the Project, they do not modify the additional recovery Project (as defined in the applicable Conservation Orders and Administrative Approval) in principle. The requested changes are also consistent with, and do not affect Area Injection Order 4. Exhibits showing the Project Area boundaries in both a vertical and areal view are provided in Enclosure B. Suggested Conservation File "Findings" and "Conclusions" to reflect the changes to the Project Area are included in Enclosure C. Corresponding changes are also requested in Conservation Orders 186 and 223 and in Administrative Approval 223.1 to reflect the proposed modification of the Project Area pore volu ~~~~vertical delineation. ~ ~~' w; ):.~~~ ~ ~:, ~ 4 ::. Ciis Cons, Corrlrtiicsg~0 ~~:~c~erage ARCO Alaska, Inc. is a Subsidiary of AtlanticRichfieldCompany ~ ~ The Working Interest Owners will continue to evaluate further additions to the Project Area. The AOGCC will be notified prior to any such additions, and amendments to Conservation Files for the FS-3 IP will be requested at the appropriate time. Representatives of ARCO and other Working Interest Owners are available to meet with you to provide additional information regarding this proposal, if necessary. Please contact Bob Iden at 263-4274 or me to establish a meeting date. We would appreciate notification prior to the meeting of any particular items the AOGCC desires to be specifically addressed. We would also request that documentation of such a meeting, as well as any correspondence relating to this submittal, be included in the administrative record for this matter. Sincerely, c~..t~ R. Iden for H. P. Foster Enclosures cc: PBU Working Interest Owners ~,; .i, „. r.~ l~v ~C ~'.: ~1`i ~Yt .?i~il i`u..... .. $'.1:~:~.. C:w'u~ C~ ENCLOSURE A ~~4 ~ ~ ~. :~ ., "a.:~i:t."i ~Nl,~i FLOW STATION 3 INJECTION PROJECT Application for Amendments to the Approval as a Qualified Tertiary Recovery Project for Purposes of the Crude Oil Windfall Profits Tax Act of 1980 May, 1988 On November 29, 1982, the Alaska Oil and Gas Conservation Commission (AOGCC) issued Conservation File 187 which approved the Flow Station 3 Injection .Project (FS-3 IP) as a qualified tertiary recovery .project meeting the requirements of subparagraphs (A), (B) and (C} of Section 4993 (c) (2) of the Internal Revenue Code of 1986, as amended (the "Code"). On January 26, 1987, the AOGCC issued Conservation File 187.1 which amended the original Conservation File 187 to account for (1) a change in the miscible injectant source, (2) utilization of a new minimum miscibility pressure correlation and (3) revisions to the Project Area pore volume based on updated structural control. The Working Interest Owners of the Prudhoe Bay Unit Initial Participating Areas (the Working Interest Owners are listed in Exhibit 1) respectfully request that Conservation Files 187 and 187.1 be further amended in recognition of the enlargement to the vertical boundaries of the Project. Conservation Files 187 and 187.1 are included as Exhibits 2 and 3, respectively. The modification requested herein is to vertically expand the Project Area to include the Sag River interval in nine of the 11 FS-3 IP WAG patterns as illustrated in Exhibit 4. The Sag River sandstone, which is included within the Prudhoe Oil Pool, averages approximately 20 feet thickness, 20 percent porosity, and 10 millidarcies permeability within the proposed FS-3 IP areal limits. The Sag River interval overlies the Sadlerochit and is separated from the Sadlerochit by the Shublik interval with an average thickness of 80 feet, as shown on the type log in Exhibit 5. As of February 1, 1988, 43 wells outside the FS-3 IP project boundary had been completed in the Sag River. Performance of these existing completions and reservoir engineering studies indicate a significant reserve potential exists. The Sag River completions planned for the FS-3 IP will be accomplished through adding perforations to existing wells which are producing from or injecting into the Sadlerochit interval. Because the fluid properties of the Sag River and Sadlerochit crudes are similar, the same miscibility criteria as the Sadlerochit will be-used. Nine patterns within the Project Area appear at this time to be suitable for miscible gas injection, and additions of Sag River perforations in both producers and miscible gas injectors are anticipated in the near future. The Working Interest Owners will continue to evaluate development of the Sag River in the remaining Project Area. As conditions warrant, further development in the Sag River may be pursued. As shown in Exhibit 5, inclusion of the Sag River increases the vertical delineation of the Project in the nine subject patterns to encompass the productive light oil column from the top of the Sag River to the top of the heavy oil/tar zone, excluding the Shublik interval. For the Project • Area patterns in which the Sag River is excluded, the vertical delineation encompasses the light oil column of the Sadlerochit interval as defined in Conservation File 187. The proposed modification to the Project Area does not affect the areal delineation of the Project defined in Conservation File 187. The boundary definitions for the FS-3 IP as set forth above, in conjunction with Exhibits 4 and 5, clearly identify and delineate the portion of the Prudhoe Bay Unit which will be affected by the Project. This portion of the Prudhoe Bay Unit will be treated as a separate property for purposes of calculating the Windfall Profits Tax base level for the Project and the amount of incremental tertiary oil removed each month from the property. A reasonable method will be applied to production from peripheral wells to allocate the appropriate volume produced from within the Project Area. Where appropriate, a method will be applied to allocate Sag River production from the Project Area. The addition of the Sag River in nine patterns adds approximately 65 million reservoir barrels (RB) of pore volume to the 927 million RB in the existing Project Area. The addition increases the original oil-in-place in the Project Area to approximately 410 MMSTB. The reservoir pore volume will require an average equivalent of approximately 41 MMCFD of miscible injectant to achieve a ten percent pore volume over the Project life. The miscible injectant volume is based on a miscible injectant formation volume factor of approximately 1500 SCF/RB. Since initiation of miscible fluid production from the Central Gas Facility in February, 1987, performance of the entire field gas system has indicated that more miscible injectant will be available than previously expected for both the FS-3 IP and the Prudhoe Bay Miscible Gas Project. This increased injectant supply will provide the incremental volume to flood the additional Sag River interval. The changes to the FS-3 IP requested herein allow utilization of the growing supply of miscible injectant to increase crude oil recovery from the Prudhoe Oil Pool. The proposed revisions to the FS-3 IP do not affect the ability of the Project to meet the requirements set forth in subparagraphs (A), (B), and (C) of Section 4993 (c)(2) of the Code. The changes reflect the application of the currently approved tertiary recovery process, using the same enriched hydrocarbon injectant, to additional areas of the Prudhoe Oil Pool. The Working Interest Owners plan to inject sufficient volumes of miscible injectant into the revised Project Area over the Project life to exceed ten percent of the reservoir pore volume contained in that area. The enriched hydrocarbon injectant will continue to be of a composition which is miscible with the crude oil at reservoir conditions. ~ ~~ ~ ~:~ ~ ~, ~, ` ~ 1 ~~ ,. ~U • • ENCLOSURE B • EXHIBIT 1 PRUDHOE BAY UNIT • INITIAL PARTICIPATING AREAS WORKING INTEREST OWNERS Amerada Hess Corporation ARCO Alaska, Inc. Chevron USA, Inc. Exxon Corporation The Louisiana Land and Exploration Company Marathon Oil Company Mobil Oil Corporation Phillips Petroleum Company Shell Western Exploration and Production, Inc. Standard Alaska Production Company Texaco USA ~` ~~- }. f ~. ~ ,Y~ br ; Ill[{ " ~`Y~ '} ~~chara~u a~rr~sska~~. EXHIBIT 2 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COP4MISSION Re: IN THE MATTER OF APPLICATION) BY ARCO ALASKA, INC. on be- ) half o.f the Prudhoe Bay Unit) working interest owners for ) the approval of the Prudhoe ) Bay Unit Flow Station 3 ) Injection Project as a ) Qualified Tertiary Recovery ) Project for purposes of the ) Crude Oil Windfall Profit ) Tax Act of 1980. ) Conservation File No. 187 DECISION IN THE MATTER OF SUBJECT APPLICATION DATED: November 29, 1982 t, ~ Alaska OiI and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Conservation File No. 187 Page 1 • INTRODUCTION By letter dated September 23, 1980, the Honorable Jay S. Hammond, Governor, advised the Honorable W. Michael Blumenthal', Secretary of the Treasury, of his appointment of the Alaska Oil and Gas Conservation Commission as the jurisdictional agency over applications involving tertiary recovery projects on land within Alaska not under federal jurisdiction.. The letter notification fulfilled the responsibility of the Governor of Alaska to provide a written submittal of agency designation in accordance with Section 4993(d)(5)(A) of the Internal Revenue Code promulgated from the Crude Oil' Windfall Profits Tax Act of 1980. August 31, 1982 the Alaska Oil and .Gas Conservation Commission in its capacity as the designated jurisdictional agency received from ARCO Alaska, Inc. on behalf of the Prudhoe Bay Unit working interest owners an application for approval of their Prudhoe Bay Unit Flow Station 3 Injection Project as a qualified tertiary recovery project for purposes of the Crude Oil Windfall Profit Tax Act of 1980. ARCO Alaska, Inc. further requested. under AS 31.05.060 that a public hearing be held on thei"r application.. . Notice of public hearing- was published in the Anchorage Times on November 3, 1982. A public hearing was held in the Quadrant Room of the Captain Cook Hotel~in Anchorage on November 19, 1982. The applicants testified in support of their application. There was no testimony offered in opposition to application. Hearing proceedings are a matter of public record. The application and supporting engineering data are part of the record. The record on this matter was closed 11:45 AM AST November 19, 1982.- The record is available for review by the public at the Commission's library, 3001 Porcupine Drive, Anchorage,. Alaska: FINDINGS 1. .The Prudhoe Bay Unit Flow Station 3 Injection Project is confined to 3650 acres overlying a portion of the Prudhoe Oil Pool and contained 440,000,000 STB of original oil in-place or approximately 2$ of the .original oil in-place for the entire Prudhoe Oil Pool of the Prudhoe Bay Unit, a Department of Energy property.. 2. The boundaries of 'the 3650 acre project area in the plan view are defined by the outer producing wells of inverted nine spot injection patterns to the east and west (strike direc- tion of the Prudhoe Oil Pool); by the limit of development wells to the south (downstructure) and by the seven water injection wells to the north (upstructure). 3. The project boundaries view are provided by the Shublik and the immobile Heavy Oil/Tar Z the project the entire light oil Sadlerochit Reservoir which lies project area.. in a vertical or cross-sectional formation (caprock) at the top one at the base thus subjecting to column of that portion of the. within the boundaries of the Conservation File No. 187 Page 4. The P • hoe Bay Unit Flow Statio•3 Injection Project involves the alternating injection of enriched natural gas and water (WAG process) into eleven (11) inverted nine spot injection wells, all within the project area. Further the project involves forty-two (42) producing wells within or on the perimeter of the project area and seven (7) upstructure water injection wells along the northern perimeter of the project area. 5. Produced natural gas will be enriched with intermediate hydrocarbons to achieve an injectant fluid with a mole percent composition which approximates 42~$ methane, 12~$ carbon dioxide, 42~$ interi~ediate~hydrocarbons (C2-C6) and 2~$ heavier hydrocarbons. 6. Theory indicates and laboratory bench tests confirm that the planned injectant fluid will be miscible with Sadlerochit crude at reservoir temperature and pressures greater than 3700 psi. 7. Reservoir pressure within the project area exceeds 3900 psi. Production and injection rates shall be controlled during the project life to offset reservoir voidage by injected volumes thus 'insuring that miscible pressures are maintained within the project area. - 8. The projected Prudhoe Bay Unit crude oil production rates insure an adequate supply of intermediate hydrocarbons for gas enrichment to provide sufficient volumes of miscible fluid injectant to excede 10~ of the reservoir pore volume within the project area. 9. Delay of miscible fluid injection until later in the field's productive life or following a conventional waterflood (secondary) program will jeopordize realization of additional oil recovery due to declining supply of inte mediate hydrocarbon production necessary for adequate gas enrichment to achieve miscibility. 10. Testimony by the major working interest owners discloses that reservoir simulation model predictions indicate an additional. 24,000,000 STB of crude oil will be recovered from the project area than other wise would be recovered by 80 acre well spacing and conventional (secondary) wateYflooding. The 24 million }barrels represents approximately_5.5~ of the original oil in-place within the project area. 11. ARCO Alaska, Inc. as operator plans to commence injec- tion of enriched natural gas into the project area around January 1, 1983. CONCLUSIONS 1. The Prudhoe Bay Unit Flow Station 3 Injection Project qualifies as a qualified tertiary enhanced recovery project Conservation age within the meani• of Section 212.78(c){1)~f the Department of Energy (DOE) regulations in effect on June 1, 1979 and as amended August 30, 1979. 2. The delineation and planned operations for the Prudhoe Bay Unit Flow Station 3 Injection Project area ensure that the project area can effectively be treated as a separate property withi an established DOE property for inczemental oil purposes (IRC ~ 4993 (c)(2)(C) and (d)(3)). 3. The project beginning date is after May 1979 (IRC 5 4993 (c)(2)(B)). ~• 4. The Prudhoe Bay Unit Flow Station 3 Injection Project involves the application~of a tertiary recovery method that is in accordance with sound engineering principles and is expected to result in more than an insignificant increase in the amount of crude oil than otherwise would be ultimately recovered. (IRC g5 4993(c)(2)(A)) 5. The Alaska Oil and Gas Conser ation Commission is the appropriate jurisdictional agency (IRC ~ 4993 (d)(5)(A)(i)) to deterrrnine whether the Prudhoe Bay Unit Flow Station 3 Injection Projection qualifies as a qualified tertiary recovery project. DECISION The Alaska Oil and Gas Conservation Commission approves the Prudhoe Bay Unit Flow Station 3 Injection Project as a qualified tertiary recovery method eeting the requirements of subparagraphs (A), (B), and (C) of IRC ~ 4993(c)(2) for purposes of the Crude Oil Windfall.Profit Tax Act of 1980. DONE at Anchorage, Alaska and dated November 29, 1982. ~~ ~ y~A ~~~ ~ d ~ ~, ~~~ ~ -:=,r~-~ -- ~`: N .__ N ~ ~,Qy~ ..'....,. ~ .ati5 r~ON Cojsr ~J. ~ Harry w Kugler, Alaska Oil and G s ~~~ mmissioner Conservation a Commission Alaska Oil and Gas Conservation Commission Alaska Oil and Gas Conservation Commission • • STATE OF ALASKA EXHIBIT 3 ALASKA OIL AND GAS CONSERVATION COMMISSION Re: REQUEST FROM ARCO ALASKA, ) INC. AND STANDARD ALASKA ) PRODUCTION COMPANY to amend ) Conservation File 187 to ) accommodate planned ) operating modifications ) to the Flow Station 3 ) Injection Project. ) Conservation File No. 187.1 DECISION IN THE MATTER OF AMENDMENTS TO CONSERVATION FILE N0. 187 DATED: January 26, 1987 Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 • Conservation File No. 187,/ January 26, 1987 Page 2 INTRODUCTION By letter dated December 8, 1986 with supporting exhibits attached, ARCO Alaska, Inc., on behalf of the Prudhoe Bay Unit (PBU) Working Interest Owners, advised the Alaska Oil and Gas Conservation Commission of their intention to modify operation of the Flow Station 3 Injection Project (FS-3IP), and requested amendments to the findings of Conservation File No. 187 that would appropriately document for the record the planned modifications. Upon its own motion, the Commission on December 12, 1986 heard representatives of ARCO Alaska, Inc., Standard Alaska Production Company, and Exxon regarding plans to modify operation of the FS-3IP. Data supporting the viability of planned modifications were presented along with additional exhibits. Messrs. Harris' and Youngren's December 17, 1986 letter to Chatterton transmitted a summary of the substantive matters covered by the December 12, 1986 meeting. i, ~iiL 1IVVJ -------~ 1. With commissioning of the Central Gas Facility (CGF), operation of the FS-3IP process module will be shut down. Miscible injectant requirements for the FS-3IP will be supplied by the CGF. 2. Extensive bench tests conducted subsequent to the FS-3IP November, 1982 hearing support a newly developed minimum miscible pressure (MMP) correlation which results in assurance that a miscible injectant can be achieved over a broader range of compositions and pressures than earlier experiments indicated. 3. Required (FS-3IP) operating data periodically submitted to the Commission provide all the information necessary for assurance that injectant composition is miscible at the prevailing reservoir pressure. 4. Improved structural control from wells drilled subsequent to the November, 1982 hearing indicate a revised total pore volume for the FS-3IP of 927 MMRB containing 391 MMSTB of OOZP. • • s Conservation File No. 187./ • January 26, 1987 Page 3 CONCLUSIONS 1. The documents listed below are appropriate addenda to the November 19, 1982 hearing record on the FS-3IP application. a) A November 24, 1986 letter with attachments to Chatterton from Messrs Foster ~ Abraham, subject "Request for Amendments". b) A December 8, 1986 letter with attachments to Chatterton from H. P. Foster, subject "modifications to Flow Station 3 Injection Project operations". c) A December 17, 1986 letter with attachments to Chatterton from Messrs. Youngren and Harris, subject "Documentation of the December 12, 198.6 Meeting". 2. Planned modifications to FS-3IP operations will not alter the project's status as a qualified tertiary recovery project. DECISION The Alaska Oil and Gas Conservation Commission endorses the planned modifications, and continues to approve the PBU FS-3IP as a qualified tertiary recovery project meeting the requirements of subparagraphs (A), (B>, and (C) of IRC §4993(c)(2) for purposes of the Crude Oil Windfall Profit Tax Act of 1980 . DONE at Anchorage, Alaska and dated January,, 1987. ~g~p' oft .~,~~ j~ 4 ~CR \~ ~~ (1 ~~~4 o ---ti __ N~ 'QL,~ Q- rfoN ~~ `N ~1 ~.~ ~~~ ~ .1 5 Co~~~ Alaska Oil and G~ n~rman Conservation Commission ~ _ ~. Lonnie ~. ~miori, commissioner Alaska Oil and Gas Conservation Commission Y~ . ~v W. W. Barnwe ommissioner Alaska Oil and Gas Conservation Commission EXHIBIT Q FLOW STATION 3 INJECTION PROJECT AREAL DELINEATION OF PROJECT 14-- 7 3 1 _~' .~»~ n c1) ~ g'3 C~ i,..z t_oA _. CJ ~~~~: ~e~ ",ti ~ t~s LEGEND o EXISTING 160/80 ACRE PRODUCER c~ EXISTING WATER INJECTOR a'f EXISTING WAG INJECTOR flt OBSERVATION WELL ''=5~ PROPOSE D SAG CERT1FiCATION iN EXISTING SADIEROCHIT PATTERN 16 • I.XNIt31T ~ Tlrr E LOG SIiOWItJG 7.OtJAI QOUNDARICS AtJD VERTICAL DELINEATION OF PROJECT FLOW STATION 3 INJECTION pROJCCT (WELL i3-3a) } :~... ' SFLU ...... ..200;1 ~' `~. ZONE FORMATION; - ~0 _ ILM~~"- 200• 0. 200, S S M D~. p 200. t ~~ _ ------~ P T KI NG A K -6aod - ~----~--~L~ SAG RIVER .. - - - - - . .................... :•................. VERTICAL pEU . -,. ................. OF PROJECT aria - -~'"' ..... ... -''-a...... SNUBLIK ......................~'~ ..... • ..........................•-•-'~.f.•• . eaoo ........................ 4 _ e9o4 :J easy ............... ~~ ............... - ........... ~::xt. -• •-• SAbIE .. ... .}~' ..................... VERTICAL ROCHIT - .. .. .. e9oo .. .... •••Kti--• .................. % DELINEATION ~~ _ OF PROJECT ............... ,:t .............. . aoso ... ~ ......... t~ ................... HEAVY. OILITAR .............. ~~=:ice.............. ~~ 8104 ............... ~;~...._....... ":. Oil/WATER ...... ,...• ..:............••-•- CONTACT - . ...... ~i~~ ..................... . .... ..... atop ............. '....:...........---....... 9200 NEATION '~- s~ iw ~ ~ Y' .. _ .. ;~ .z ENCLOSURE C ~~°z ~; q aaa+. ~... - '•.-'. C~.S ~/~Jp1V• JC'+.1 /d 11~3Je NY~ ~h~~1Di`~~$ • • SUGGESTED FINDINGS, CONCLUSIONS AND DECISION PROPOSED CONSERVATION FILE 187.2 FINDINGS 1. As modified, the area affected by the project in a vertical or cross-sectional view is: (a) For nine patterns, the Kingak shale and the immobile Heavy Oil/Tar Zone intermediate Shublik interval is project area. (b) For the remainder of the project formation at the top and the immobile the base. (cap rock) at the top at the base. The got included in the area, the Shublik Heavy Oil/Tar Zone at Thus, the project encompasses the entire light oil column of the Sadlerochit interval which lies within the boundaries of the project area and the light oil column of the Sag River interval in nine designated patterns, each of which are bounded by the outer producing wells of the inverted nine-spot injection patterns as detailed by Exhibit 4 of the Operator's May 17, 1988 correspondence. 2. The reservoir pore volume of approximately 992 million reservoir barrels will require an average equivalent of approximately 41 MMCFD of miscible injectant to achieve a 10% pore volume over the project life. Expected supplies of miscible injectant from the CGF are sufficient to supply this rate. 3. The original oil-in-place of the revised Flow Station 3 Injection Project Area was approximately 410 million stock tank barrels. CONCLUSIONS 1. The document listed below is an appropriate addendum to the administrative record established for the Flow Station 3 Injection Project: (a) A May 17, 1988 letter, with attachments, to Mr. Chatterton from Mr. Foster, subject "Request for Amendments". 2. The Central Gas Facility will provide sufficient volumes of miscible injectant for the Flow Station 3 Injection Project, as now planned, to meet requirements of a qualified tertiary recovery project. ~ ~ 3. The Flow Station 3 Injection Project Area, as amended, is adequately delineated. DECISION The Flow Station 3 Injection Project continues to satisfy the requirements of Section 4993 of the Internal Revenue Code of 1986, as amended, and, as a result, continues to constitute a "qualified tertiary recovery project". ~ ~~ ~' _- .. ~, d'l, ~.. - 1_7 ;'f~ C~.. 7c1`., l,J la ~9fid`~.R. J1V~1 X13 Standard Alaska ~. ~ Production Company 900 East Benson Boule~ P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 564-5111 ~^ ~ Y'~. ~~ _~ ~4 STANDARD' ALASKA PRODUC-TIC Mr. C. V. Chatterton Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Dear Mr. Chatterton: INJECTION WELL SURFACE SHUT-IN EQUIPMENT Standard Alaska Production Company requests approval to equip surface safety valves for WAG -(later Alternating Gas) and gas re-injection wells in Prudhoe Bay Unit WOA with fusible caps rather than permanent hydraulic operating systems for the normal operating mode. AOGCC approved the identical arrangement in October, 1984, for water injection wells. The SSV will operate in the same manner as in water injection wells in that the hydraulically actuated, upper master valve (SSV) is held in the open position by means of a fusible cap. During wireline or stimulation operations, a portable hydraulic pump connects to the SSV providing a means of remotely controlling the valve. Additional safety devices for WAG & gas injection wells include a downhole, fail-safe check valve installed below the permafrost base (approved by AOGCC in a May 6, 1986 correspondence) and a flowline check valve to protect from well back flowing. By this letter, Standard Alaska Production Company request approval of the proposed system. Sincerely, RHRiRLB/pm/0984D cc: 3.2 AOGCC 16.3 Safety Systems T. 0. Stagg A unit of the original Standard pil Coin pony Founded in Cleveland, Ohio, in 1870. July 28, 1986 S STANDARD ALASKA PRODUCTION COMPANY R. H. Reiley Manager Drilling ,. ~-~, ;.. - , ~_ A SOHIO ALASKA PETROLEUM COMPANY __1__ WAG AND GAS VALVE' SAF'E~I'Y VALVE (SSV) R.FVF'RSE GATE VALVE ~•TI"I'fi HYDRAULIC D04~'I~-IOLE III7FJCTION QiFF7C~C VALVE (~~AIRF~:??~ R...F'I'RISVABLE) P7II,T• BF INSTALLS IN A PROF III°. BELCI.a BASE OF PERMAFROST . X12 ~` ~~ i ~~ ~ ~ ~ TELEGOPY ADO. (9fl7) 275-7542 y 6, I9S6 Mr. ~. A. Reilep Manager, drilling Standard Alaska Production Company P. 0. fox 196512 Anchorage, Alaska 99519-5f 12 Re: in~ectior~ ~TeI1. AutvmB.tic Shut-in Salves PBU, '6+TflA Dear Mr. Reilep: Zn your Ietter o~,April 2I, 1.98.6, yt~tarequested approval to use a wireline re~r~,evable dcthQle tubing check valve in place of the standard T}owole Safety -Shut-in Valve (SSSV} in water alternating gs~ {WAGS and g8s injection ~aell.s. The use off' this type of valve in grater in,~eetion wells was previously approved Qetc~ber 2 ~ , 1984 . The Alaska Oil and Gas Conservation Ca~issivn has deter~i~xed that wireline retrievab2e,..tubng check valves, placed balow the base of permfrost _t the requirements of Conservation ~Jrder 145, Rule S, for end gas injection operatfons and hereBy agpraves their use bg Standard-Alaska Productic~n`Company in the PBU, WOA. AlI such valves are subject to tigerationand gerfQrmance tests required `by 2t} AAG 25..265:{c). Sincerel~r, ~. i ~. ..~ ,; Lennie C. Smith ,,, Co s s ion ; . I.S.IO ~:. '' X11 Standard Alaska Production Company 900 East Benson Boulevo~ P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 564-5111 Mr. C. V. Chatterton Alaska Oil ~ Gas ~'onservation Commission 3001 Porcupine Rrive Anchorage, Alaska 99501 I ,- r...__~- E '~ 'yy _ ~3 -- -.~` - ~;~y '. t " ~-- STANDARD ALASKA PRODUCTION ~ ~,~.. '~'-~ April 27, 1986 Injection Well Oownhole Shut-In Equipment Oear Mr. Chatterton: 4dater injection wells in Prudhoe Bay Unit WOA are completed arith wireline retrievable check valves located below the base of permafrost. The use of this safety device was approved by the AOGCC in October, 1984. There are currently 45 active seater injection wells in the PBU WOA. Same existing water injection wells are scheduled to be converted to (water alternating gas) injection wells in early 19$7. Gas re-injection wells are scheduled for EWE (Eileen West End) in 1988. Standard Alaska Production Company is submitting for approval the recom- mendation that below .permafrost tubing check valves be utilized as the downhole safety device for water, WAG and gas injection wells in the PBU WOA. The downhole check valve can be periodically inspected for per- formance by testing against shut-in tubing pressure. Sincerely, ~' RHR/T~S/pm/06600 cc: 3.2 AOGCC 16.4 Safety Systems H. Rei ey Manager, [trilling ,,,. A unit of the original Standard Oil Coin pang Founded in Cleveland, Ohio, in 1870. x.10 ~ ~ . MEMORA DUM Spa of Alaska ~~, axe .~ cc~~sv,~~rzca~ ~c~~ss~~~ TO: i~AU3.E: C StI3J~. DATE: ~@ptE'.Ai~S ~. ~ ~ ~•~ ~.~ ~t~fl~l $s 14i7,~r FILE NO• l~}atG I '~ TELEPHONE NO: ~~ ~~ ~~~ FROM:. ~'~S~la. A. +gliSj~ SUBJECT: ~'~"~ pr(~~f:Ct~ Petralex~ ~ese+~s-voir ~ugi~a~er Conservation Order Excepts©ns. 4n Angulst 3t}, 2983 ~e received ~ letter ~r+~9 ~xCC7 ~lla~ka, ~+~« ARCA r~*quested ez~e~t.i©r~ ~a rules 6 and l of C®n~ervata.on Carder 165 fes 1I wells, eir prr~c3ucers a~td dive i~~ectors. T hire prepared seal tatal+ss s~u~aa~rising the data tc~r ~e tells referred to is the 1~Cf.} letter.' The,~~ t~.bl.es shcaw the prt~lucin~ tells tQ be iaa vie~lat3.©a mf CQnarva.ti~u Qrder 165 as early as June e~~ 193 as a result +~f the F1Qw ~tatiag 3 explosion and fire nn lay 26, I98 Y~hile pregaring the- tah~.es eddtienai]. r~,uestcaa~ have arose. ~tati~" ~xr~teys on 13-2F~ and D~ 13--21 appear to be nonexs.;~ten.t. ARC~3 repcarts production frca~ ~S `13- as .early as December, 152 brit ih, the ~ugt~t letter nary p6rc~ductioa dici n+~t start until ~sy, 2983. Since the eacpl.~eian, prad~xct~n hSS contin€~ed fres~ D: 1~-3i3 end i~.~ection into walla 13-21 and 13_2+ hay alsr~. the remainder of the' t~l is have shuts-3.u yin day 2 6, 1~ ~ 3 ... , _~ 02-001A(Rev.10178) I _:' Curving Well (thru 06/83) 13-19 265, 796 BW 1,746,573 MSCF 13-21 250,139 BW 13-24 308,541 BW 13-32 241,405 BW 14-14 708,445 BW FS-3 PROJECT INJECTORS First Uate BHP Spinner Injection Perfed SI 10-08-82 S 03-16-83 12-82 (G) 10-04-82 06-83 02-10-83 S 11-28-82 S 07-12-82 S 09-03-82 T 05-06-83 04-83 11-17-82 04-83 02-13-83 04-83 11-27-$2 09-03-82 01-83 07-15-82 06-83 06-83 FS-3 PROJECT PRODUCERS Cum oil First Date Well ~thru 06/83) BHP Spinner Production Perfed SI Comments 6-17 95,013 STB 02-13-83 S 02-83 02-11-83 03-83 06-30-83 S 06-83 13-2A 92,366 STB 12-82 03-12-83? 02-83 Spudded 02-04-83 03-83 Completed 03-12-83 04-83 FS-3 report shows 06-83 production in 12%82 13-14 140,771 02-12-83 S 03-83 02-12-83 06-83 13-30 401,962 02-05-83 S 02-83 02-02-83 14-22 137,552 01-24-83 S 01-83 01-22-83 06-83 14-28 98,817 01-22-83 S 02-83 01-20-83 04-83 `'t1' ARCO Alaska, Inr~ ~ Post Office ox 360 ` Anchorage, Alaska 99510 Telephone 907 265 6550 .C = - Telephone 907 659 5220 -North Slope ,~~~,,, : James W. Hart ~--~ ~ ./CU~n,t~ _ ~- :.:,~ ~ , , Operations Manager i _ " t ~~ ~.;. ~ - Prudhoe Bay - !!}, d~ ~i~'~~4_! .~ h ~ C..n~~^l August 11, 1983 ~ `'-~-~- ._2 ~' i I '~ G=iii ~-~- ~. _ i .- sT~~~ r~_e ~ST~1* ~ ~~" Mr. Harry W. Kugler, Commissioner ( _ __ Alaska Oil and Gas Conservation Commission Ct~ W~€fi _ 3001 Porcupine Drive ~1+; ___ F Anchorage, AK 99501 Dear N1r. Kugler: This letter documents our August 3 request by telephone for permis- sion to flare up to 6.5 NIVZSCF of gas associated with an unscheduled shutdown of Flow Station No. 3 to being that day. The shutdown was necessary in order to repair a 30" gas line .from the Flow Station. The line was damaged on July 27 during a pressure test of a split-T prior to a hat~tap operation. f hG{' On August 2 various metallurgical tests were car~leted with results that did not support continued operations, and within 24 hours the decision was made to shut-in the facility. We were able to continue operations while performing the tests as the damage was covered by the split-T. The damaged piece was removed and the plant started back up within 32 hours after shutdown. Approximately 3.8 MVbSCF of gas was flared due to the shutdown. Sincerely, ~ . ~~ J. W. Hart JWH/LKS/sk l,, ,~~ i;~ .-~~ ARCO Alaska, Inc. is a Subsidiary of AtlanticRichfieldcompany #8 r ~r• 'rQ].~ ~ii ~@~.II~'a A~tt Alas~-~ I~tc. ~~ISY : ~®f.BlS9 t . lease r~f+~r tv ~~ see+~nd a~ia~~a~.:-~raga~t dated ,Iul~' 37, I~~~ ~~rr th+s Bay. wit Flcmr-Station Irv. ~. 1~.,~act~.a~ ~ t _~S.mal~* aubmixted :in g3~a~+~ ~ •'h Gtrraa~r~ra~~~rd~x i~a-. 18b,. d at~r Leant ia~'+~rl ra~e~ ~~ that ~~+~xt ~wi~?~ your '~ap~+e Yen ~ ~acat l that by- ervatian t~irdat ~'+~. ~ ~~ ~ dated ~f4vbes 29-~ 1982, ~eha ssiaa~ ag rum tie ~'lo~ Station ~. 3 ln~ectc-n P~o~~ect as +~~ to r~equ~.~a~nt~o of S~&~ara~~ rh {~}: {~?.~ aa~d ~~} of ®~' I.H.C. ~ ~99~t~# {~1• ~ yeu ham ~~e~-ielp r+rte~d, tht ~lc~w 3tatinn ~~+ 3 In~act~.en prv,~e~t maa in~.tiatac€ D+~a z' Ott, 1962 Frith n,~eatic~x~ +~~ ~.stuxal as ~enxi~hed -~rith sntt~i+~~:+~nt int+~ 8i~ta {~ - ~ ? ~~dr+~~arha gar ~+~ ~iart~are t~ a+ch~.aa+s miscibili~ und2ra~+~~wr~ir p~r+~~a~~a and t+m~per~r~ coa$i,t+~t~at I Snbaaquettt ~` pry eet i~f.tiatic-n, ree©~da da~Ic~+~a that tb:rs~ugh 3~s+e ;~~r 193, 3,t34~,~a9 "'~'. a-! ~~i~he~f as to ael~S.e~ a~i~r~i~ biliCy at reas+~r~rvia~ ~~nd3:t~.a-ns auk- 6,J13,~1 barrala a~ s~a~t~r ware `3~m.~act+~d into the p~ca~~:ct araa t~.ua s~aatita~ ~ubpara~raph tl? ot` ae+~ti~ 212.7'{~ ~~ the Jane ~.~979~ enar~Y za~u2ati~ffi ~ defl.~-itian f a "tsrtiax~r rsear-+~s~r mat. ." 3"~e A~a~r 2b, 1983 expl.v~a~.c-~e and i`ir~ re~sultia~g in d~~tru~ti~n ©~ m~.scibla in~ecfiaat facil~.tes cau,~ea et ~+~ inter- - ruptiQn to grr-~eet eaa~nt ~xana~ s Y~rur - ea~pdit+~tas ~saaa in tmdartakix~ a t~~~ ` t~- r~et~u#.ld ~~+~ miscf.~3~: in~ectant €atill.tia~ i~ nate~raYt~Zp, ~xr~thet sta~~ to by ~ t4 tit bask -`withdrawals fry ~~~ ~r~,~ect area and ~~ e+~~ti.~xv.e fa~eetSen ®f :all mailable t.ax in~e~ the prc~ aet area {true l+lanned ia:~ectant alter~~ttin~ ~f.th a r~.~cat~ala f~uid) will aids te~riall~r in ma~.~Caaing r~s~+~r~ait ~©rxditi~ne at levela t~ pz+~sarvs the int+~S~ety v~ ~i.s~ible flub alzsac~ S.s~,~~~t~d iate~ the ~~+~act asaa and:. the b~auefi,t+~ ea~+~fr~. t~,i3~ ~ ~ ~ ~ +~ P~~,~ ~ ~i~~ tk~~-+~~s~a~axtee~ ~x~ Ch+~ r~bx~f.ld c~~-~i~c~.tal~~ Sn,~~c~~n~ ~~~cilitiss i~ ps~~era~ aid ~rc~ux ~~~~r~~~r~ a~ ~an~ia~a~. ~~.~~ the ~xm~~~~ ~a ~xi ir~mlly p1,~nn~d, ~h~ ~~~~~~~n ~.~ ~~-~iden~ ~M~~ ~.o `i~rx~v~x~i'be ~ ,~~ to=t~e~ px~~~~~ ~~~ ec~n.rr~~. ~ccc~rdf.n~~,y, ~ha is~iea~s #.~+~ r~et~x~~~~.vn ~rcl~~ ~~a. ~.? _ ~Z~e~r~ly, ~ ' , ~ ~. ~" :° t t` ~.~:w,,. ~~. ~~ ~~ 7 _~m _... ` ARCO Alaska, Inc. ~ - ~- ~y ~ -~ ~ ~ Post Office Box 100360 K COM:wI Anchorage, Alaska 99510 Telephone 907 265 6513 Leland E. Tate ' -~ ~~~` Vice President 2 i:h;°.~ F___. 2 C>cG t ;~FC ___- __ ST,a -~ .,. ~-C _- sr~r ; ~-C _- - ~ --- July 26, 1983 __ - -- I CONF~"P; -- FtCF: - { Alaska Oil & Gas Conservation Commission State of Alaska Division of Oil & Gas 3001 Porcupine Drive Anchorage, AK 99501 Gentlemen: RE: Prudhoe Bay Unit State of Alaska Second Semiannual Progress Report Flow Station 3 Injection Project In compliance with Conservation Order No. 186, ARCO Alaska, Inc., as Eastern Area Operator, submits the second semiannual .report for the Flow Station 3 Injection Project, Prudhoe Bay Unit. This report covers the period from January 1 through June 30, 1983. Sincerely /~~.~ L. E. Tate LET/MLB/la t. d. ,. „R ARCO Alaska, Inc. is a Subsidiary of AtlanticRichfieldCompany • SECOND SEMIANNUAL PROGRESS REPORT TO THE STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION FLOW STATION 3 INJECTION PROJECT PRUDHOE BAY UNIT SADLEROCHIT RESERVOIR DATA THROUGH JUNE 30, 1983 CONSERVATION ORDER NO. 186 ~~~ 4,.: ,~' SECOND SEMIANNUAL PROGRESS REPORT FLOW STATION 3 INJECTION PROJECT Project Status Summary Miscible gas injection began in the Flow Station 3 Injection Project on December 30, 1982. The following report summarizes the status of the project, its operation, and the data collected during the period January 1 through June 30, 1983. The attached exhibits detail the project production and injection, the logging performed, the radioactive tracer program status, the bottomhole pressure data, and specific information obtained from the Observation Pattern. Copies of individual logs and injection profiles are forwarded routinely and are not included in this report. During the first six months of 1983, the project was operated in accord- ance with the planned implementation schedule with eight of the eleven water-alternating-gas (WAG) injection patterns receiving water and five of these receiving miscible gas. Also, five of the seven upstructure injectors received water for essentially the entire period. The two remaining water injectors were drilled and completed but are awaiting manifolding. (See Exhibit 5.) Development drilling continued in the project area, and on June 11, 1983 the last well (13-27) was completed. To date, 52 of the 64 project- related wells have been perforated. Exhibits 6 and 15 indicate the perforating status and location of project wells, respectively.,. ._,.,;~,t~ ~.~. ., .~~trr • `~ On May 26, 1983 an explosion and fire occurred in the miscible gas injection module. Although production resumed at Flow Station 3 and from the project area within one week, miscible gas injection is tempo- rarily unavailable, and only limited water for injection is available at this time (est. 10,000 BWPD). The water source wells are not producible due to fire damage to interconnecting control cables, piping, etc. for the gas lift compressors. Production is currently restricted to a minimum in the project area to keep facilities active. The gas lift module is expected to return to service by September, 1983 and the miscible gas injection module will follow in February, 1984. Production and Injection Volumes Exhibit 1 summarizes the production and injection volumes prior to and since the project beginning date for the project area. Exhibits 2 and 3 provide detail by well. Exhibits 14A and 14B are plots of production and injection volumes allocated to the project area. Bottom Hole Pressure Exhibit 12 is a tabulation of bottomhole pressure data obtained during the first half of 1983. The current volume-weighted average reservoir pressure in the project area is 3870 psig at the 8800' ss datum or about 3890 psig at the midpoint of the light oil column. It should be noted that the reservoir pressure of 3950 psig at datum reported in Exhibit 1 of the previous Semiannual Report (2nd Half 1982) -2- was not reservoir-volume weighted. This pressure should be corrected to 3910 psig at datum to account for volume weighting and corresponds to 3945 psig at the midpoint of the light oil column. Minimum Miscibility Pressure The minimum miscibility pressure of the injectant averaged about 3730 psi during the first half of 1983. Early in this period some components of the injection process were inactive due to start-up operations resulting in a higher minimum miscibility pressure. After startup, under normal operating conditions, minimum miscibility pressures ranged from 3500 to 3750 psi. Observation Well Observation Well 13-98 was completed January 10, 1983 with a fiberglass liner opposite the Sadlerochit oil column after an oil base core was successfully recovered. Three methods were used to determine the location of well 13-98 in relation to WAG injection well 13-6. Conven- tional gyro surveys indicated the wells to be 365' apart as shown on Exhibit 8. Anew generation directional tool, Schlumberger's Guidance Continuous Tool, was run in both wells indicating well 13-98 to be 515' '~~ N5oW of well 13-6 at the top of the Sadlerochit. An acoustic technique ~~~~ utilizing seismic equipment and interpretation methods calculated the ~~ wells to be 510 to 560' apart. This test substantiates the GCT results which represent our current best estimate of the locations of the two wells. -3- i Wireline surveys run to date in 13-98 and 13-6 are tabulated on Exhibit 7; Exhibits 9 and 10 are overlays of the various Induction and Neutron Logs run to date. The overlays indicate only a small change in resis- tivity immediately above the HOT. Although miscible gas injection has ceased temporarily, periodic logging in Well 13-98 will continue in order to evaluate the movement of the miscible fluid and water injected to date. Injection of water into Well 13-6 will continue until miscible gas injection can resume. Surveillance and Diagnostic Logs Exhibit 11 tabulates the surveillance and diagnostic logs run in the rest of the project area. The list includes: (1) initial surveillance logs, (2) baseline pulse neutron logs, (3) injection profiles and pressure transient survey tests and (4) pump-in temperature surveys for cement channel detection. Pulsed neutron and CNL logs will be repeated when changes in GOR or water cut are observed. This work is being coordinated with the field water-oil contact and gas-oil contact moni- toring programs. Radioactive Tracer Radioactive tracer material was injected into four wells (.Exhibit 13) in May, 1983, during miscible gas injection. Sampling of produced fluid in the offset wells has been initiated, however sample analysis results are not yet available. -4- EXHIBITS 1. Summary of Pertinent Data 2. Production and Injection Volumes Prior to Project Beginning Date 3. Production and Injection Volumes Since Project Beginning Date 4. Percent of Production/Injection Assigned to Project Area 5. Status of Injection Wells 6. Perforating Status 7. Observation Pattern Logs 8. Well 13-98 Bottomhole Location 9. Well 13-98 DIL Log Overlays 10. Well 13-98 CNL Log Overlays 11. Surveillance and Diagnostic Logs 12. Bottomhole Pressure Data 13. Radioactive Tracer Summary 14. Project Area Production and Injection Plot 15. Development Map -5- EXHIBIT 1 FLOW STATION 3 INJECTION PROJECT SUMMARY OF PERTINENT DATA* As of 6/30/83 First oil production from Project Area March 1979 Project Beginning Date December 30, 1982 Project Area Production Prior to Project Beginning Date Oil (STB) 43,003,156 Gas (MCF) 34,201,531 Water (STB). 6,672,630 Project Area Production Since Project Beginning Date Oil (.STB/RVB) 6,247,847/8,433,178. Gas (MCF) 5,303,588 Water (STB) 992,953 Project Area Injection Prior to Project Beginning Date Water (STB) 389,294 Project Area Injection Since Project Beginning Date Miscible Gas (MCF/RVB) 3,904,309/2,695,089 Water (STB) 6,313,551 Reservoir Pressure @ 8800' ss Datum Initial (psig) 4,420 Current (psig) 3,870 Average Minimum Miscibility Pressure First Half 1983 (psig) 3,730 Project Related Wells (Active/Ultimate) Production 28/42 Produced Water Injection 5/7 Water-Alternating-Gas 8/11 Water Source Wells 4/4 *Al1 "Project Area" volumes take into account the fraction of each well's production or injection assigned to the project area. (Exhibit 4) r- ` ~ =~~ .. `~ ~u ~:~~ ; Exhi bi t 2 Flow Station 3 Injection Project Cumulative Production and Injection Prior to Project Beginning Date* Dr.w rl~~i.~~ nr~ Well Oil(STB) Water(BBL) 1-18 553,020 5,496,592 6-6 2,397,948 51,288 6-9 4,202,874 159,362 6-11 4,511,161 1,769,425 6-12 2,815,276 70,718 6-17 -- -- 12-4 6,788 12-4A 427,867 8,587 12-8A 26,680 2,235 12-86 498,720 31,996 12-9 1,188,144 7,989 12-12 865,562 25,338 12-15 -- -- 12-16 -- -- 12-17 -- -- 12-18 -- -- 13-1 10,070,868 278,511 13-2 5,483,240 1,258,933 13-3 6,420,852 85,759 13-4 1,639,927 112,792 13-5 115,856 4,694 13-7 62,418 -- 13-8 194,684 9,105 13-10 108,484 3,819 13-11 -- -- 13-12 41,625 791 13-13 -- -- 13-14 -- -- 13-26 1,831 51 13-27 -- -- 13-28 -- -- 13-25 -- -- 13-30 -- -- 13-33 -- -- 13-34 -- -- 14-7 7,b92,735 39,679 14-8 1,449,099 57,417 14-9 -- -- 14-12 678,995 -- 14-22 -- -- 14-26 -- -- 14-28 -- -- 14-29 -- -- 14-30 -- -- -~- Gas(MSF) 482,537 1,650,191 2,690,088 3,017,325 1,728,568 4,953 528,353 17,178 470,362 1,105,707 553,511 9,076,767 4,.466,982 5,901 ,757 1,076,706 71,324 40,166 189,553 54 , 472 27,416 1,185 5,741,250 981,064 588,068 .. f ~ ,$ ~r Vn~~ ~ u 1 V G . (,Cont. ) r:::::::. Production Well Oil(STB) Water(BBL) 12-19 -- -- 12-20 -- -- 13-6 -- -- 13-9 -- -- 13-15 -- -- 13-16 -- -- 13-17 144,368 7,088 13-18 60,866 1,484 13-19 -- -- 13-20 173,459 6,909 13-21 -- -- 13-22 -- -- 13-23A 11,889 -- 13-24 -- -- 13-25 -- -- 13-32 -- -- 14-13 307,984 -- 14-14 373,263 -- Injection Miscible Gas(MSF) Water(STB) Injectant (MSF) .286,335 524,489 -- 85,544 149,082. -- 93,250 109,462 -- 7,691 -- -- 237,792 -- -- 264,314 -- -- *Total cumulatives - not adjusted by Project Area Fraction. -s- EXHIBIT 3 Flow Station 3 Injection Project Volumes Since Project Beginning Date (Not Adjusted by Project Fraction) Production Injection Oil (STB) Water (STB) Gas (MSCF) Water (BBL) Gas (MSCF) 8,899,629 1,393,379 7,576,872 8,615,539 3,904,309 Individual Well Totals Production Well Month Oil (STB) Water (BBL) Gas (MSCF) 1-18 12/82 3,909 -- 2,953 1/83 88,331 -- 73,628 2/83 44,876 -- 32,987 3/83 76,724 -- 57,856 4/83 72,164 -- 53,285 5/83 43,149 -- 31,093 6/83 54,383 -- 42,970 Total: 383,536 -- 294,772 6-6 12/82 -- -- -- 1/83 178,475. -- 141,583 2/83 -- -- -- 3/83 -- -- -- 4/83 16,215 3,173 10,974 5/83 77,837 26,273 61,920 6/83 -- - -- Total: 272,527 29,446 214,477 6-9 12/82 7,978 2,228 5,457 1/83 78,091 22,163 59,411 2/83 63,104 14,6F~0 49,.239 3/83 102,442 28,266 84,757 .4/83 97,126 25,983 75,560 5/83 86,82.5 42,224 63,649 6/83 100,525 30,698- 79,689 Total: 536,091 166,222 417,762 6-11 12/82 8,284 7,575 6,225 1/83 78,636 39,691 56,905 2/83 67,176 45,024 48,231 3/83 53,063 39,.534 40,643 4/83 30,546 27,517 .23,841 5/83 59,907 76,113 44,647 6/83 -- -- -- Total: 297,612 .235,454 220,4~~~° .. f_ ~ _."i~ .. -9- ,", ~~ Production Well Month Oil (STB) Water (BBL) Gas (MSCF) 6-12 12/82 3,691 468 2,625 1/83 57,086 2,706 28,550 2/83 55,442 3,515 27,638 3/83 62,098 2,008 40,973 4/83 55,998 1,377 39,059 5/83 49,013 3,086 34,594- 6/83 -- -- -- Total: 283,328 13,160 173,439 6-17 12/82 -- -- -- 1/83 -- -- -- 2/83 707 -- 553 3/83 -- -- -- 4/83 17,882 -- 14,394 5/83 76,424 26,618 57,930 6 /83 -- -- -- Total: 95,013 26,618 72,877 12-4A 12/82 4,158 97 5,873 1/83 42,758 1,349 65,439 2/83 33,689. 1,097 54,696 3/83 74,746 2,251 108,517 4/83 68,137 1,718 103,524 5/83 47,976 1,268 64,408 6/83 72,344 1,548 70,857 Total: 343,808 9,328 473,314 12-8B 12/82 1,753 140 1,374 1/83 37,684 5,126 29,774 2/83 18,878 3,461 15,293 3/83 32,609 7,220 25,281 4/83 18,973 4,815 13,468 5 /83 -- -- -- 6/83 8,684 1,182 4,778 Total: 118,581 21,804 89,968 12-9 12/82 3,696 62 3,769 1/83 89,248 1,700 85,827 2/83 62,350 1,271 50,718 3/83 74,931 1,702 60,205 4/83 61,989 1,295 48,257 5/83 38,123. 750. 31,193 6/83 63,617 1,032 43,284 Total: 393,954 7,812. 323,253 12-12 12/82 .3,524 206 2.,320 1/83 83,852 5,702 56,661. 2/83 23,398 3.,804 16,130 3/83 -- -- -- 4/83 -- -- -- 5/83 -- -- -- 6/83 42,949 737 26,631 Total: 153,723 10,449 101,742 -10- Production Well Month Oil (STB) Water (BBL) Gas (MSCF) 12-15 NOT PERFORATED 12-16 NOT PERFORATED 12-17 NOT PERFORATED 12-18 NOT PERFORATED 13-1 12/82 4,947 484 5,259 1/$3 77,414 12,860 105,699 2/83 -- -- -- 3/83 14,719 3,435 22,165 4/83 71,498 14,706 87,832 5/83 68,403 18,146 72,847 6/83 98,902 19,670 130,597 Total: 335,883 63,301 424,399 13-2A 12/82 4,893 2,763 5,421 1/83 60,601 64,918 73,988 2/83 -- -- -- 3/83 -~ -- -- 4/83 -- -- -- 5/83 26,872 59,940 31,715 6/83 -- -- -- Total: 92.,366 127,621 111,124 13-3 12/82 4,950 287 4,286. 1/83 67,367 2,963 56,476 2/83 -- -- -- 3/83 53,654 2,884 34,340 4/83 75,423 3,742 44,601 5/83 57,221 4,213 31,829 6/83 73,465 4,173 47,886 Total: 332.,080 18,274 219,418 13-4 DID NOT PRODUCE 13-5 12/82 3,212 165 2,037 1/83 79,820 3,176 60,752 2/83 80,996 3,598 60,356 3/83 85,900 3,266 57,972 4/83 85,363 3,293 57,358 5/83 73,952 3,568 44,675 6/83 82,993 3,368 63,441 Total: 492,236 20,440 346,591 13-7 12/82 -- -- -- 1/83 42,763 1,323 33,235 2/83 62,270 3,180 50,919 3/83 72,708 3,131 54,263 4/83. 64,696 2,729 33,966 5/83 58,671 3,533 41,283 6/83 2,350 95 1,340 Total: 303,458 13,991 215,006 -11- Production Well Month Oil (STB) Water (BBL) Gas (MSCF) 13-8 12/82 2,781 187 3,858 1/83 71,597 3,905 92,288 2/83 70,141 4,463 77,797 3/83 69,822 3,827 72,036 4/83 76,583 4,210 89,663 5/83 63,169 5,454 55,003 6/83 2,509 171 2,257 Total: 356,602 22,217 392,902 13-10 12/82 4,336 227 2,601 1/83 83,241 4,235 70,203 2/83 62,860 3,264 52,105 3/83 66,965 3,105 54,866 4/83 42,040 2,780 29,043 5/83 18,367 2,022 12,485 6/83 -- -- -- Total: 277,$09 15,633 221,303 13-11 NOT PERFORATED 13-12 12/82 -- -- -- 1/83 3,788 177 2,516 2/83 2,367 152 1,542 3/83 74,694 19,505 77,987 4/83 80,652 26,010 100,844 5/83 65,744 26,481 68,885 6/83 -- -- -- Total: 227,245 72,325 251,774 13-13 NOT PERFORATED 13-14 12/82 -- -- -- 1/83 -- -- -- 2/83 -- -- -- 3/83 22,620 591 16,828 4/83 54,600 34,999 50,604 5/83 63,551 79,783 57,445 6/83 -- -- -- Total: 140,771 115,373 124,877 13-26 12/82 120 4 78 1/83 -- -- -- 2/83 -- -- -- 3/83 -- -- -- 4/83 79,865 10,783 59,056 5/83 57,946 27,817 49,226 6/83 -- -- -- Total: 137,931 38,604 108,360 -12- Production Well Month Oil (STB) Water (BBL) Gas (MSCF) 13-27 NOT PERFORATED 13-28 NOT PERFORATED 13-29 NOT PERFORATED 13-30 12/82 -- -- -- 1/83 -- -- -- 2/83 65,952 2,959 41,354 3/83 75,201 3,292 54,382 4/83 95,614 3,716 93,180 5/83 82,262 4,767 72,894 6/83 82,933 3,248 79,078 Total: 401,962 17,982 340,888 13-33 NOT PERFORATED 13-34 12/82 -- -- -- 1/83 -- -- -- 2/83 172 5 119 3/83 1,931 49 1,354 4/83 80,528 2,624 52,398 5/83 62,853 3,191 35,022 6/83 84,028 3,398 53,553 Total: 229,512 9,267 142,446 14-7 12/82 5,401 106 4,197 1/83 47,781 670 35,905 2/83 42,175 701 31,384 3/83 95,368 4,578 74,676 4/83 82,505 38,741 62,645 5/83 70,011 67,743 54,357 6/83 179 141 165 Total: 343,420 112,680 263,329 14-8 12/82 2,832 519 -2,229 1/83 48,467 8,948 52,507 2/83 52,812 12,777 62,708 3/83 58,571 12,339 73,196 4/83 36,811 7,899 39,605 5/83 26,816 8,575 21,092 6/83 -- -- -- Total: 226,309 51.,057 251,338 -13- Well 14-9B Total; 14-12 Total: 14-22 Total: 14-26 Total: 14-28 Total: Month 12/82 1/83 2/83 3/83 4/83 5/83 6/83 12/82 1/83 2/83 3/83 4/83 5/83 6/83 12/82 1/83 2 /83 3/83 4/83 5/83 6/83 12/82 1/83 2/83 3/83 4/83 5/83 6/83 12/82 1/83 2/83 3/83 4/83 5/83 6/83 Production Oil (STB) Water (BBL) 91,859 -- 59,087 -- 76,186 1,766 84,928 1,432 76,257 206 4,012 -- 392,329 3,404 5,612 -- 99,585 1,576 89,456 4,351 73,171 3,454 70,473 1,922 54,646 2,572 74,928 984 467,871 14,859 3,750 -- 61,409 5,858 27,359 32,174 23,981 27,905 21,053 37,148 137,552 103,085 13,364 -- 61,626 484 77,782 2,810 79,285 2,787 64,722 3,769 3,733 80 300,512 9,930 33,035 -- 65,782 29,049 98,817 29,049 Gas (MSCF) 77,006 47,421 51,066 59,359 50,291 2,986 288,129 5,660 109,310 112,115 92,403 72,068 56,248 83,357 531,161 2,752 45,583 21,368 18,444 15,212 103,359 11,201 49,882 57,301 60,208 48,647 2,927 230,166 27,510 58,-484 85,994 -14- Production Well Month Oil (STB) Water (BBL) Gas (MSCF) 14-29 12/82 -- -- -- 1/83 13;957 -- 11,692 2/83 34,486 -- 28,716 3/83 41,182 -- 31,222 4/83 97,737 -- 63,203 5/83 81,648 -- 45,435 6/83 70,279 --- 42,537 Total: 339,289 -- 222,805 14-30 12/82 -- -- -- 1/83 51,014 -- 42,758 2/83 60,620 976 45,148 3/83 91,398 2,168 66,825 4/83 98,741- 2,209 91,288 5/83 85,729 2,641 73,388 6/83 -- -- -- Total: 387,502 7,994 319,407 -15- Inj ection Well Month Water (BBL) GAS (MSCF) 12-19 NOT PERFORATED 12-20 NOT PERFORATED 13-6 12/82 -- -- -1/83 -- -- 2/83 81,695 -- 3/83 52,813 -- 4/83 168,875 -- 5/83 3.,141 332,426 6/83 132,796 -- Total: 439,320 332,426 13-9 12/82. -- -- 1/83 -- -- 2/83 -- -- 3/83 -- -- 4/83 -- -- 5/83 -- -- 6/83 -- -- 13-15 12/82 -- -- 1/83 -- -- 2 /83 -- -- 3/83 -- -- 4/83 -- -- 5/83 -- -- 6/83 -- -- 13-16 12/82 -- -- 1/83 -- -- 2/83 -- -- 3/83 -- -- 4/83 -- -- 5/83 -- -- 6/83 -- -- 13-17 12/82 19,154 -- 1/83 238,560 -- 2/83 235,111 -- 3/83 196,163 -- 4/83 87,625 -- 5/83 364,241 -- 6/83 24,276 -- Total: 1,165,130 -- -16- Injection Well Month Water (BBL) GAS (MSCF) 13-18 12/82 5,342 -- 1/83 215,253 -- 2/83 107,637 -- 3/83 188,618 -- 4/83 218.,320 -- 5/83 136,684 -- 6/83 437 -- Total: 872,291 -- 13-19 12/82 -- 6,874 1/83 -- 261,382 2/83 -- 778,682 3/83 -- 541,431 4/83 141,192 158,204 5/83 124,604 -- 6/83 -- -- Total: 265,796 1,746,573 13-20 12/82 9,444 -- 1/83 189,408 -- 2/83 91,087 -- 3/83 160,325 -- 4/83 85,571 -- 5/83 153,256 -- 6/83 25,701 -- Total: 714,792 -- 13-21 12/82 -- -- 1/83 -- -- 2/83 -- -- 3/83 -- -- 4/83 62,473 -- 5/83 166,127 -- 6/83 21,539 -- Total: 250,139 -- 13-22 12/82 -- -- 1/83 321,235 -- 2/83 272,161 -- 3/83 381,009 -- 4/83 69,013. 456,705 5/83 -- 211,646 6/83 -- -- Total: 1,043,41$ 668,351 -17- Injection Well Month Water (BBL) GAS (MSCF) 13-23A 12/82 -- -- 1/83 353,557 -- 2/83 165,552 -- 3/83 224,465 -- 4/83 265,697 -- 5/83 -- 240,896 6/83 -- -- Total: 1,009;271 240,896 13-24 12/82 -- -- 1/83 -- -- 2/83 -- -- 3/83 -- -- 4/83 104,523 -- 5/83 183,847 -- 6/83 20,171 -- Total: 308,541 -- 13-25 12/82 -- -- 1/83 142,949 -- 2/83 282,023 -- 3/83 265,952 12,300 4/83 -- 683,420 5/83 478 220,343 6/83 -- -- Total: 691,402 916,063 13-32 12/82 -- -- 1/83 -- -- 2/83 -- -- 3/83 -- -- 4/83 115,861. -- 5/83 125,544 -- 6/83 -- -- Total: 241;405 -- 14-13 12/82 -- -- 1/83 61,989 -- 2/83 137,992 -- 3/83 262,179 -- 4/83 344,845 -- 5/83 98,584 -- 6/83 - -- Total: 905,589 -- 14-14 12/82 -- -- 1/83 71,736 -- 2/83 93,587 -- 3/83 154,667 -- 4/83 239,187 -- 5/83 149,268 -- 6/83 -- -- Total: 708,445 -- -18- EXHIBIT 4 Flow Station 3 Injection Project Percent of Production Assigned to Project Area Well Percent (~) Well. Percent ($) 1-18 52 13-10 100 6-6 100 13-11 100 6-9 41 13-12 36* 6-11 100 13-13 70* 6-12 100 13-14 100 6-17 100 13-26 100 12-4A 100 13-27 41* 12-8B 50 13-28 49* 12-9 50 13-29 50* 12-12 100 13-30 100 12-15 53 13-33 100 12-16 48 13-34 100 12-17 100 14-7 51 12-18 26 14-8 57 13-1 100 14-9B 26 13-2 100 14-12 49 13-3 100 14-22 36* 13-4 100 14-26 100 13-5 100 14-28 49 13-7 100 14-29 25 13-8 34* 14-30 75 Percent of Injection Assigned to Project Area We11 Percent (~) Well Percent ($) 12-19 51 13-20 63 12-20 36 13-21 100 13-6 100 13-22 100 13-9 100 13-23 100 13-15 100 13-24 100 13-16 100 13-25 l00 13-17 48 13-32 100 13-18 46 14-13 26 13-19 100 14-14 59 *Denotes percentages which are subject to change. -19- EXHIBIT 5 Flow Station 3 Injection Project Status of Injection We11s Well 13-6 13-9 13-15 13-16 13-19 13-21 13-22 13-23 13-24 13-25 13-32 12-19 12-20 13-17 13-18 13-20 14-13 14-14 We11 Type WAG WAG WAG WAG WAG WAG WAG WAG WAG WAG WAG PWI PWI PWI PWI PWI PWI PWI Injection Period 2-17 to 5-01 5-01 to 5-26 6-02 to 6-30 12-30 to 4-11 4-11 to 5-26 4-11 to 5--26 6-21 to 6-30 12-27 to 4-08 4-08 to 5-26 12-30 to 4-30 4-30 to 5-26 4-19 to 5-26 6---22 to 6-30 1-09 to 3-27 3-27 to 5-26 4-17 to 5-26 11-23 to 5-26 6-10 to 6W15 11-22 to 5-26 12-15 to 5-26 6-11 to 6-21 1-24 to 5--26 1-15 to 5-26 Injectant Water Miscible Gas Water Miscible Gas Water Water Water Water Miscible Gas Water Miscible Gas Water Water water Miscible Gas Water Water Water Water Water Water Water Water ,1 a r, s -20- 1 ~ • EXHIBIT 6 FLOW STATION 3 INJECTION PROJECT PERFORATING STATUS 7/1/83 Perforating Well No. Well Type Date Perforated 1-18 P 6-6 P 6-9 P 6-11 P 6-12 P 6-17 P 2/11/83 12-4A P 12-8B P 12-9 P 12-12 P 12-15 P NP 12-16 P NP 12-17 P NP 12-18 P NP 12-19 WI NP 12-20 WI NP 12-1 P 13-2A P 5/08/83 13-3 P 13-4 P 15-5 P 13-6 WAG 2/10/83 & 3/30/8.3 (Add Perforations) 13-7 P 13-8 P 13-9 WAG 2/09/83 (Additional perfs will 13-10 P * be necessary) 13-11 P NP 13-12 P 13-13 P NP 13-14 P 2/10/83 13-15 WAG 1/01/83 13-16 WAG 1/01/83 13-17 WI 13-18 WI 13-19 WAG 5/04/83 (Reperforation & add 13-20 WI * perforations) * = Well perforated prior to 1/01/83. P = Producer WI =Water Injector WAG = WAG Injector WS = Water Source NP = Not Perforated -21- s ~ EXHIBIT 6 (Continued) FLOW STATION 3 INJECTION PROJECT PERFORATING STATUS 7/1/83 Perforating Well No. Well Tyke 13-21 WAG 13-22 WAG 13-23A WAG 13-24 WAG 13-25 WAG 13-26 P 13-27 P 13-28 P 13-29 P 13-30 P 13-32 WAG 13-33 p 13-34 P 14-6 WS 14-7 P 14-8 P 14-9B P 14-11 WS 14-12 p 14-13 WI 14-14 WI 14-17 WS 14-21 WS 14-22 P 14-26 P 14-28 P 14-29 P 14-30 P Date Perforated 4/20/83 4/21/83 2/09/83 2/02/83 NP NP NP 2/02/83 NP 2/09/83 4/14/83 4/13/83 1/21/83 12/29/82 1/20/83 (Add Perforations) (Reperforation) (Add perforations) (Add perforations) -22- C~ EXHIBIT 7 Well No. 13-6 Flow Station 3 Injection Project Observation Pattern Surveys We 11 Tie Log Tyke WAG GCT Spinner/Temp/ Falloff Injection Profile Injection Profile GCT OB DIL/CN/GCT Vertical Seismic Profile GST/CNL CO/CNL DIL DIL CO DIL/CNL/GR GCT GCT Date Logged 1/23/83 3/16/83 13-98 KEY: Well Type OB = Observation Well WAG WAG Injector Log TYPe CO CNL GST DIL GCT Carbon Oxygen Compensated Neutron Log Gamma Spectroscopy Tool Dual Induction Log Guidance Continuous: Tool 4/15/83 5/14/83 6/13/83 1/14/83 1/29/83 3/05/83 3/06/83 5/07/83 5/Q8/83 5/09/83 5/29/83 6/01/83 6/12/83 -23- EXHIBIT 8 • BOTTOMHOLE LOCATIONS OF TOP OF SADLEROCHIT -24- DS 13-7 Gyro 13-9 LOGGE[ losoo RILD 5-29-83-- RILD L OGGED~ ..--.5 -7- 8 3------ 10600 HOT ~--- ~-- _ Exhibit 9 ~~5 _^ ~~ WG ~ RILD LOGGED ~~ ' 1-14-63 lo~oo TO 13-~ 105( 1060 HO 0 H1 logo S ~ - ~ ~ ~ ~ ~ ~ ~ , ` N ~$ ~; ~~ 0 :~ 0 T ~ _ - -- ~ , C : ~, : , ,~ . , ,~_ ~. ~ ~.__ 0 ~ ~.~ Q e ~i Q~N RA N 5 29-83~~ ~-Q.~~ Exhibit 10 EXHIBIT 11 Flow Station 3 Injection Project Surveillance and Diagnostic Surveys Well No. Well Type Survey Type Date 6-9 P NLL 3/03/83 6-12 P TDT 2/17/83 6-17 P Pump-in Temp 2/12/83 12-4A P TDT 2/20/83 12-12 P Pump-in Temp 2/23/83 13-2A P Pump-~in Temp 5/09/83 13-3 P NLL 3/13/83 13-5 P TDT 2/16/83 13-7 P NLL 3/12/83 13-8 P Spinner 3/05/83 13-10 P Spinner 2/27/83 13-12 P Spinner (incomplete) .3/20/83 13-12 P Spinner 4/01/83 13-17 WI Injection Profile. 2/17/83 13-17 WI RA Tracer/Diff Temp 2/20/83 13-17 WI Spinner 3/20/83 13-18 WI RA Tracer/Spinner 3/23/83 13-18 WI Temp/Falloff 5/20/83 13-19 WAG Spinner/HP/Temp/Gradio 3/16/83 13-20 WI RA Tracer/Spinner/Falloff 3/20/83 13-20 WI Temp/Falloff 5/20/83 13-22 WAG RA Tracer/Spinner/Falloff 3/18/83 13-23A WAG Injection Profile Clncomplete) 2/17 & 20/83 13-23A WAG RA Tracer/Spinner/Falloff 3/11/83 13-26 P TDT 3/09/83 13-26 P Spinner 4/11/83 13-26 P Spinner/Temp 5/22/83 13-30 P Spinner (,Incomplete) 4/09/83 13-34 P TDT 4/02/83 13-34 P Spinner 6/11/83 14-7 P NLL 3/09/83 14-9B P NLL 3/11/83 14-9B P Spinner 4/01/83 14-13 WI Injection Profile 4/25/83 14-13 WI Temp/Falloff 5/22/83 14-22 P Pump-in Temp 6/13/83 14-26 P NLL 2/27/83 14-26 P Spinner 4/04/83 14-28 P Pump-in Temp 1/18/83 14-28 P Pump-in Temp 6/13/83 14-29 P Spinner 4/02/83 14-30 P Spinner 4/01/83 *Does not include cement bond logs. KEY: Well Type Log Type P = Producer NLL Neutron Lifetime Log WI = Water Injector TDT = Thermal Decay Time WAG = WAG Tnjector -27- ~~ ~ • EXHIBIT 12 Flow Station 3 Injection Project Bottomhole Pressure Data BHP Surveys Reservoir Pressure Well No. Type Date at 8800' ss 1-18 Static 5/30/83 3853 6-9 PBU 2/10/83 3932 6-17 Static 2/13/83 3931 6-17 Static 6/30/83 3888 13-1 Static 5/29/83 3889 13-3 PBU 1/05/83 3868 13-4 Static 6/30/83 3900 13-5 Static 5/29/83 3911 13-6 Static 3/30/83 3934 13-7 PBU 3/19/83 3772 13-8 PBU 3/03/83 3785 13-10 PBU 2/20/83 .3878 13-12 PBU 3/30/83 3768 13-14 Static 2/12/83 3946. 13-15 Static 1/01/83 3943 13-16 Static 1/01/83 3933 13-24 Static 2/10/83 3933 13-26 Static 2/05/83 3952 PBU 4/10/83 3808 13-30 Static 2/05/83 3960 13-34 Static 2/10/83 3.932 PBU 6/10/83 3881 14-6 PBU 4/03/83 3893 14-8 Static 6/01/83 3882 14-9B PBU 3/31/83 3874 14-17 PBU 3/27/83 3919 14-21 PBU 3/25/$3 3931 14-22 Static 1/24/83 4004 14-26 Static 1/01/83 3959 PBU 4/04/83 3634* PBU 5/24/83 3664* 14-28 Static 1/22/83 3930 14-29 PBU 4/03/83 3880 14-30 PBU 4/01/83 3815 *Questionable data--excluded from average pressure calculation. -28- • EXHIBIT 13 Flow Station 3 Injection Project Radioactive Tracer Program - Phase I tracer injection took place on May 12, 1983. The following wells received tracer during miscible gas injection: Well Tracer. Type Concentration. 13-6 Kr-85 2.5 curie 13-22 C2H5T 10.2 curie 13-23A Kr-85 9.1 curie 13-25 Kr-85 7.99 curie - Phase II and III to be postponed; tracer injection to xesume when miscible gas injection resumes. - Sampling of producing wells began June, 1983. r ~~_ r t .. -29- .. • Exhibit 14A RVERRGE IIRILY PROIIUCTION RRTES FLOW STRTION 3 INJECTION RROJECT 0 rn 0 m >- s a u 0 -- ~ ct ca F- ct3 z 0 _N ~_ d O~ o? N u ~ p x f N . ~U Z¢ ON N Y W C1 ~ ~ W Q l~ W4 YW ~Y tlai7 -30- ' • • Exhibit 14B RVERRGE DRILY INJECTION RRTES FLOW STRTION 3 INJECTION PROJECT 0 rn 0 M } A ti U N O Q F (!1 N Z O_ _N ~_ c ~ ~ O ? N ~ O x f ~ . r. F. U Z¢ ~W ~N W Q1 ~ W Q LL WW } W .~-NY~ ~! d: > .s ~ jb_ t~ ° ;~ t b ~ i. f 3 ~ -P5 14-21 - 11-31 B- 1 6-19 •8-20 14-IS w 1 H-ie 6-1 6^13 • 1-34 i-2 • N-IZ 11-T •8-4 •6-8 • • ~ N-8 11-29 14-14 13^ l7 X8-18 1 `4 1..25 1'S-23A ~ 11-28 • 4-28 6-12 • •B-11 13-1 g 3 A e 1 6,.9 10 • 1-13 • 11-8 11-11 • 33-20 1 -30 6-17 3-18 12-19 w ~ 13-2A f 3-3 12..20 • , ~ 13-24 8-8 •13-1 • • ~ 11-10 13'26 12-12 11-17 N-8B 14-8 • 3-IB 13'92 13-11 19..25 13-34 13-22 fd0 12-17 uJ0 • Rffl • 321 32-38 33-33 • 1 ~ 14-22 • •13-5 1.411 32-8 11-21 ~ l3-29 a IS 3 ~ 1&-13 33-36 • \ ~ x 13-98 ,~ ~O 13-13 -16 32 33-28 18-32 • 13-SD ~ ..7 ~ 12-88 12-31 9 f3-9 12`15 33-27 13-8 LEGEND: • D]L PRODUCER fdp GAS INJECTOR 1~ ln1aC~O ~~I~I~ ~Illl~o ~ WATER PROD CER f 4 1O°t"D '°°° '0°I"0 WELL STATUS AT wi.f.~iir«awflwfw.~ronw,,,.l, ~Q U w WATER INJECTOR TpP pF SADLEROCHIT °"~°""'""`' YLVLEt 1`•0000' FLOW STATION #3 FORMATION k ossERVATIaN WELL INJECT ION PROJECT AREA ~ ~ ;.~ ~ u w .Mwwir era 7/63 1.2000' 2006530201 K3U 2 ~6 ....- ~ ~.. SAM ~ -, ~ AtlanticRich~~ompany n'.: ~:~ '~, ~. ~'~ Public Relations Department ~ ~ ~, r ~,. Post Office Box 360 v ~~ Anchorage, Alaska 90510 1 ~'`. ... Telephone 907 277-5637 ~_ ~ 2 ' - J '; . for release IMMEDIATELY FOR ADDITIONAL .INFORMATION CO T ~~`' (SUSAN ANDREWS (265-6847) iL ~ ! ~'!' -- ^~ (~; ~~ FLOW STATION 3 DAMAGE LESS THAN EARLY ESTIMATES '~ T~??<~c _~ ~; ~~? T_EC _~ _ - ANCHORAGE, ALASKA, MAY 27 -- .Damage to the NGL injection modu~.eoNfE~• FILE: ,~ ~ - at Prudhoe Bay's Flow Station 3 is less. .extensive than it appeared ~~ immediately following an early morning explosion and fixe on Thursday. According to ARCO Alaska, Inc. Vice President Leland Tate, the explosion was the .result of a rupture of a s-mall storage vessel containing natural gas iauids. 'Cause of the rupture is .yet. to be determined. _ Rupture of the storage vessel led to the explosion and fire which severely damaged electrical wiring, but left undamaged the other major components of the module. Preliminary indications are that two compressors, four pumps. and two other vessels used .for naturalgas liquids storage are still operational. -Flow Station 3 operations employees began fire fighting efforts immediately following the explosion. The .volunteer Prudhoe Bay Fire Brigade, composed of both ARCO Alaska and Sohio Alaska Petroleum Company employees, responded within a few minutes and had the fire under control within an hour yesterday morning. There was no damage to the flow station's oil handling facilities. Flow Station 3 is expected to be back in operation in thr$e to four days, handling up to 300,000 barrels of oil daily.. r ~~r~ Y ~~ (more) ~If~l' ~3 1. ~~$, a.?dSk~ ~}ii ~ ~, ~s t:~.rr.., ~.{)~{tmsslor~ Armi~~ra~a •~ ~~ No one was in the NGL (Natural .gas liquids) injection module_ at the time of Thursday's incident, and there were no injuries. Production from .other oil handling facilities in the field has been increased to help offset the loss in production resulting from the temporary shut down of Flow Station 3. Prudhoe Bay is limited by state conservation. rules to an avexage daily production of 1.5 million barrels, and the field's operators have accumulated a :':production "bank" in excess of two million barrels of oil, in the event of shutdowns for maintenance and other .causes. The operators now are drawing on that account. No doss of total oil production from.Prudhoe.Bay in ..1983 is expected as a result of the incident. The.NGL injection module is part of a small-scale Enhanced s Oil Recovery project at Prudhoe Bay which. went into operation at Flow Station 3 in December. Repairs to the module are expected to take up to six months, including replacing damaged electrical wiring and instrumentation. ARCO operates three flow stations, where natural. gas and water produced in association with crude oil are separated from the oil. The crude oil goes to Pump Station I of the trans"-Alaska pipeline, while the natural gas and water are reinjected into the reservoir. Sohio opexates three similar oil-handling facilities. ARCO is operator of the east side of the Prudhoe Bay field, .and Sohio operator of the west side. A-37-$3 # # # ~~ i~ ~i for release AtlanticRich~ompany " Public Relations Department Post Office Box 360 Anchorage, Alaska 99510 Telephone 907 277-5637 IMMEDIATELY FIRE DAMAGES PRUDHOE BAY FACILITY FOR ADDITIONAL INFORMATION CO SUSAN ANDREWS (265-6847) ANCHORAGE, AK, May 26 -- An explosion and fire early Thursday extensively damaged an NGL injection module at Flow Station 3 at Prudhoe Bay. The facility is located on the east `~~ F?L side of the giant field, operated by ARCO Alaska, Inc. '- There was no damage to the flow station's oil handling facilities, and no oil was spilled. The flow station was shut down, for safety precautions, and is expected to be back in operation within a few days. No one was in the NGL (Natural Gas Liquids) injection module at the time of the incident, and there were no injuries. Cause of the accident is under investigation. The injection module will be isolated from the rest of Flow Station 3, .allowing oil production to continue. Production from other-oil .handling facilities in the field has been increased to make up the loss in production resulting from the temporary shutdown Of Flow Station 3. Prudhoe Bay is limited to a daily average of 1.5 million barrels, and the field's operators have accumulated a production "bank" in excess of two million barrels of oil, to accommodate shutdowns for maintenance and other causes. There will be no loss in total production for 1983 as a result of the incident. The NGL injection module is part of a small-scale Enhanced Oil Recovery project at Prudhoe Bay which went into operation late in 1982 at Flow Station 3. The project affects about 2 percent of the oil in place in the field. (more) ~CE~V~~ ~r^.n Ka Vii( is Cas ~;:;r,. C;om^~ission C~~Lhcra+~~ i ~- The Enhanced Oil Recovery process is a generally recognized tertiary method, and has been applied to several oil fields in the continental U.S. ARCO operates three flow stations on the east half of the Prudhoe Bay field, and Sohio Alaska Petroleum Company operates three similar facilities, known as gathering centers, on the west side. The facilities separate natural gas and water from crude oil as it comes from the field. The crude oil is then sent to Pump Station 1 of the Trans-Alaska Pipeline, while the natural gas and water are reinjected into the reservoir. A-36-83 # # # # # ~4 `~ ARCO Alaska, Inc. ' ~~ Post Office BoT 360 Anchorage, Alaska 99510 Telephone 907 265 6513 " Leland E. Tate M1d1 Vice President __- M/VI CQMM -~ RrS F~JG January 31, 1983 ~ 1 Ei~lG~_ 2 EivG __ _ Alaska Oil & Gas Conservation ,- - - 3 ` `'`~`~-~' _- _ _. Commission ~_ _ ~ ~ ~='~~' __. - State of Alaska __ ~ ~ 1 GFCjI-_ Division of Oil & Gas ! -~ 2 G~' 3001 Porcupine Drive ~ 3 GF -- ' Anchorage, AK 99501 ____ ~ L STr'~T TEC_ STAT TEC i------ Gentlemen: _~__ COiVFER: RE: Prudhoe Bay Unit ---- ~ FILF: State of Alaska First Semi-Annual Progress Report Flow Station 3 Injection Project ~~+~~~ In compliance with Conservation Order No. 186, ARCO Alaska, Inc., as Eastern Operations Area operator, submits the first semi-annual report for the Flow Station 3 Injection Project, Prudhoe Bay Unit. This report covers the period ending December 31, 1982. Sincerely L. E. Tate LET/MLB/lmi r ~"r, ~s ,.~ ?i.lilSku i}tl ~ tas 'v'U4T;~ ::iii)a~it551'ptt ~nchn;a~e ARCO Alaska,.lnc. is a Subsidiary of AtlanticRichfieldCompany ~ ~ FIRST SEMI-ANNUAL PROGRESS REPORT TO THE STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION FLOW STATION 3 INJECTION PROJECT PRUDHOE BAY UNIT SADLEROCHIT RESERVOIR DATA THROUGH DECEMBER 31, 1982 CONSERVATION ORDER NO. 186 ~.. ~~ ~~; ~' n~~se FIRST SEMI-ANNUAL REPORT FLOW STATION 3 INJECTION PROJECT Project Status Summary The Flow Station 3 Injection Project facilities arrived via the 1982 Sealift. The installation, tie-in and functional check out of these facilities was completed late in the year. Water injection in the project area was initiated on November 22, in well 13-18, and by the end of the year two additional wells were receiving water (Exhibit 5). Injection of miscible injectant was initiated into well 13-19 on December 30, 1982. In all future reports, this date, December 30, 1982, will be referenced as the project beginning date. As of December 31, 1982, 57 project related wells had been drilled. Seven wells remain to be drilled and 22 remain to be perforated to complete development in the project area. Exhibits 6 and 10 summarize the status and location of project area wells. Exhibits 7, 8 and 9 detail pre-startup surveillance and diagnostic data. Reservoir Considerations Exhibit 1 summarizes the production and injection prior to and since the project beginning date for the Project Area. Also shown is an estimate of both the original and current reservoir pressure. Exhibit 9 provides ~a complete tabulation of bottomhole pressure data since July, 1982. An observation well (13-98) was in the process of being drilled on December 31, 1982, to a target 400' from WAG (water-alternating-gas) well 13-6 in the direction of producer 13-5. An earlier interference test confirmed that reservoir continuity exists between wells 13-6 and 13-5 (Exhibit 10). An oil base core is planned in the Sadlerochit, and the completion will include a nonconductive fiberglass liner across the Sadlerochit oil column. Induction logs and Compensated Neutron logs will be run in this well periodically following initiation of injection into WAG well 13-6. These logs are intended to monitor the movement of water and gas in this pattern during the Water-Alternating-Gas injection process. It is anticipated that, in addition to surveillance logs in project area wells, radioactive tracer material will be introduced during the gas phase of injection in each WAG well. This program will begin after stabilized miscible gas injection has been attained for the WAG injection wells. The following exhibits are presented to complete the data requirements of Conservation Order No. 186. ~ rrc~a '~ ~~, 4 t. ~. k ~i ;,. f'~~1:i ~1.1. t1 ~.31~y (.~~I~.: . VJ ~i 1?1l~:'].i hill EXHIBITS 1. Summary of Pertinent Data 2. Production and Injection Volumes Prior to Project Beginning Date 3. Production and Injection Volumes Since Project Beginning Date 4. Percent of Production/Injection Assigned to Project Area 5. Current Injection Wells 6. Perforating Status 7. Surveillance Logs 8. Diagnostic Logs 9. Bottomhole Pressure Data 10. Development Map . c",~ ~ ~' ~ i. ' r` s • EXHIBIT 1 Flow Station 3 Injection Project SUMMARY OF PERTINENT DATA As of 12/31/82 First oil production from Project Area March 1979 Project Beginning Date December 30, 1982 Project Area Production Prior to Project Beginning Date Oil (STB) 43,003,156 Gas (MCF) 34,201,531 Water (STB) 6,672,630 Project Area Production Since Project Beginning Date Oil (STB/RVB) 58,286/78,907 Gas (MCF) 50,695 Water (STB) 13,727 Project Area Injection Prior to Project Beginning Date Water (STB) 389,294 Project Area Injection Since Project Beginning Date Miscible Gas (MCF/RVB) 6,874/4,775 Water (STB) 17,601 Reservoir Pressure @ -8800' Datum Initial (psig) 4420 Current (psig) 3950 Project Related Wells (Active/Ultimate) Production 18/42 Produced Water Injection 3/7 Water-Alternating-Gas 1/11 * All "Project Area" volumes take into account the fraction of each well's production or injection assigned to the project area. (Exhibit 4) 3~''~''" a d, w,.~~; ~_,s,.. ~`~f ~ ~~ ,r .. . Exhibit 2 Flow Station 3 Injection Project Cumulative Production and Injection Prior to Project Beginning Date* Production Well Oil(STB) Water(BBL) Gas(MSF) 1-18 55.3,02 0 5,496,592 482,537 6-6 2,397,948 51,288 1,650,191 6-9 4,202,874 159,362 2,690,088 6-11 4,511,16 1 1,769,425 3,017,325 6-12 2,815,276 70,718 1,728,568 12-4. 6,7$8 4,953 12-4A 427,867 8,587 528,353 12-8A 26,680 2,235 }7,178 12-8B 498,720 .31,996 470,362 12-9 1,188,144 7,989 1,1.05,707 12-12 865,562 25,33$ 553,511 12-15 -- -- -- 12-16 -- -- -- 12-17 -- -- -- 12~18 -- -- -- 13-1 10,070.,868 -278,511- 9,076,767 13-2 5,483,240 1,258,933 4,466,982 13-3 6,420,852 85,759 5,901,757 13-4 1,639,927 112,792 1,076,706 13-5 115,856 4,694 71,324 13-7 62,418 -- 40,166 13-8 194,684 9,105. 189,553 13-10 108,484 3,819 54,472 13-11 -- -- -- 13-12 41,625 791 27,416 13-13 -- -- -- 13-14 -- -- -- 13-26 1,831 51 1,185 13-27 -- -- -- 13-28 -- -- -- 13-25 - -- -- 13-30 -- -- -- 13-33 -- -- -- 13-34 -- -- -- 14-7 7,692,735 39,679 5,741,250 14-8 1,449,099 57,417 981,064 14-12 678,995 -- 588,068 14-22 -- -- -- 14-26 -- -- -- 14-28 -- -- -- 14-29 -- -- -- 14-30 -- -- -- Exhibit 2 `' (Cont.) Production Well Oil(STB) Water(BBL) Gas(MSF) 12-19 -- -- -- 12-20 -- -- -- 13-6 -- -- -- 13-9 -- -- -- 13-15 -- -- -- 13-16 -- -- -- 13-17 144,368 7,088. 286.,335 13-18 60,866 1,484 85,544 13-19 -- -- -- 13-20 173,459 6,909 93,250 13-21 -- -- -- 13-22 -- -- -- 13-23A 11,889 -- 7,691 13-24 -- -- -- 13-25 -- -- -- 13-32 -- -- -- 14-13 307,984 -- 237,792 14-14 373,263 -- 264,314 LJ Injection Miscible Water(STB) Injectant (MSF) 524,489 -- 149,082 -- 109,462 -- *Total cumulatives - not adjusted by .Project Area Fraction. i t Exhibit 3 Flow Station 3 Injection Project Volumes Since Project Beginning Date December 30, 1982 - Project Area* Well Oil(STB) 1-18 3909 6-6 -- 6-9 7978 6-11 8284 6-12 3691 6-17 -- 12-4A 4158 12-8B 1753 12-9 3639 12-12 3524 12-15 -- 12-16 -- 12-17 -- 12-18 -- 13-1 4947 13-2 4893 13-3 4950 13-4 -- 13-5 3212 13-7 -- 13-8 2781 13-10 4336 13-11 -- 13-12 -- 13-13. -- 13-14 -- 13-26 120 13-27 -- 13-28 -- 13-29 -- 13-30 -- 13-33 -- 13-34 -- 14-7 5401 14-8 2832. 14-9 -- 14-12 5612 14-22 -- 14-26 -- 14-28 -- 14-29 -- 14-30 -- Water(STB) Gas(MSCF) 2228 7575 468 97 .140 62 206 484 2763 287 165 .187 227 4 106 519 2953 5457 6225 2625 5873 1374 3769 2320 5295 5421 4286 2037 3858 2601 78 4197 2229 5660 ~~~~~ A i ., s Ala.sKa Oil ~ uas C~7s, tiorrrmission 1~nchorag~ Exhibit 3 (Cont.) Injection. Miscible Well Water(STB) Injectant (MSCF) 12-19 -- -- 12-20 -- -- 13-6 -- -- 13-9 -- -- 13-15 -- -- 13-16 -- -- 13-17 19,154 -- 13-18 5,342 -- 13-19 -- 6,874 13-20 9,444 -- 13-21 -- -- 13-22 -- -- 13-23A -- -- 13-24 -- -- 13-25 -- -- 13-32 -- -- 14-13 -- -- 14-14 -- -- *Tota1 Cumulatives - not adjusted by Project Area Fraction. • EXHIBIT 4 Flow Station 3 Injection Project Percent of Production Assigned to Project Area Well Percent (%) Well Percent (~) 1-18 *52 13-10 100 6-6 100 13-11 100 6-9 *42 13-12 37 6-11 100 13-13 *68 6-12 100 13-14 100 6-17 100 13-26 100 12-4A 100 13-27 *41 12-8B *50 13-28 *50 12-9 *50 13-29 100 12-12 100 13-30 100 12-15 *50 13-33 100 12-16 *50 13-34 100 12-17 100 14-7 51 12-18 *25 14-8 57 13-1 100 14-9B 26 13-2 100 14-12 *49 13-3 100 14-22 36 13-4 100 14-26 100 13-5 100 14-28 49 13-7 100 14-29 *25 13-8 *35 14-30 75 Percent of Injection Assigned to Project Area Well Percent (~) Well Percent (~) 12-19 51 13-20 63 12-20 36 13-21 100 13-6 100 13-22 100 13-9 100 13-23 100 13-15 100 13-24 100 13-16 100 13-25 100 13-17 48 13-32 100 13-18 46 14-13 26 13-19 100 14-14 59 * Denotes percentages which are subject to change. EXHIBIT 5 Flow Station 3 Injection Project Current Injection Wells Well Well Type Date of First Injection 13-17 PWI 11/23/82 13-18 PWI 11/22/82 13-19 WAG 12/30/82 13-20 PWI 12/15/82 Injectant Water Water Miscible Gas Water • EXHIBIT 6 Flow Station 3 Injection Project Perforating Status 1/1/83 PERFORATING Well No. Well Type Date Perforated 1-18 P 6-6 P 6-9 P 6-11 P * * = Well perforated prior 6-12 P * to 7/1/82 6-17 P NP 12-4A P 9/5/82 P = Producer 12-8B P 12-9 P * WI = Water Injector 12-12 P 12-15 P ND WAG = WAG Injector 12-16 P ND 12-17 P ND WS = Water Source 12-18 P ND 12-19 WI NP ND = Not Drilled 12-20 WI NP NP = Not Perforated 13-1 P 13-2 P 13-3 P 13-4 P 13-5 P 9/23/82 13-6 WAG 9/6/82 13-7 P 8/14/82 13-8 P 8/15/82 13-9 wAG 11/20/82 13-10 P 8/15/82 13-11 P NP 13-12 P 8/16/82 13-13 P NP 13-14 P NP 13-15 WAG 12/30/82 13-16 WAG 12/30/82 13-17 WI 8/4/82 13-18 WI 8/3/82 13-19 WAG 10/2/82 13-20 WI 8/9/82 13-21 WAG 11/17/82 13-22 WAG 11/18/82 13-23A WAG 9/29/82 Exhibit 6 • Page 2 Well Well Type Date Perforated 13-24 WAG NP 13-25 WAG 11/21/82 13-26 P NP 13-27 P ND 13-28 P ND 13-29 P ND 13-30 P NP 13-32 wAG 11/27/82 13-33 P NP 13-34 P NP 14-6 WS 14-7 P 14-8 P 14-9B P 12/26/82 14-11 WS 14-12 P 8/18/82 14-13 WI 7/11/82 14-14 WI 7/12/82 14-17 wS 11/10/82 14-21 WS 11/13/82 14-22 P NP 14-26 P NP 14-28 P NP 14-29 P 12/25/82 14-30 P 12/26/82 9 • EXHIBIT 7 Flow Station 3 Injection Project Surveillance Logs (Cased Hole) Well No. Well Type Log Type Date Logged 1-18 P CNL* 11/24/82 6-11 P CNL* 11/24/82 12-8B P CNL* 11/25/82 12-9 P CNL* 12/2/82 12-9 P TDT 9/23/82 12-9 P NLL 7/30/82 12-9 P GST 10/8/82 12-9 P CO 7/29/82 13-3 P CNL* 10/22/82 13-4 P CNL* 10/23/82 13-5 P CNL* 11/1/82 13-25 WAG TDT 11/19/82 13-25 WAG GST 11/20/82 14-7 P CNL* 10/27/82 P = Producer WI Water Injector WAG = WAG Injector WS = Water Source Well CO = Carbon Oxygen CNL = Compensated Neutron Log GST - Gamma Spectroscopy Tool NLL = Neutron Lifetime Log TDT = Thermal Decay Time * Logs to obtain "baseline" data prior to project beginning date. • EXHIBIT 8 Flow Station 3 Injection Project Diagnostic Logs* Well No. 1-18 12-4A 12-8B 12-9 13-6 13-6 13-6 13-9 13-17 13-18 13-20 13-21 13-24 14-12 14-13 14-14 Well Type P P P P WAG WAG WAG WAG WI WI WI WAG WAG P WI WI Log Type Spinner Spinner Spinner Spinner Pump-in Temp. Pump-in Temp. Pump-in Temp. Pump-in Temp. Spinner Spinner Spinner Pump-in Temp. Pump-in Temp. Spinner Spinner Spinner Date Logged 11/13/82 9/26/82 8/21/82 7/6/82 9/7/82 10/16/82 12/4/82 11/21/82 9/26/82 9/28/82 9/26/82 11/24/82 11/19/82 10/10/82 10/6/82 9/3/82 * Does not include cement bond logs. • • • EXHIBIT 9 Flow Station 3 Injection Project Bottomhole Pressure Data BHP SURVEYS Reservoir Pressure Well No. Type Date At 8800' ss 1-18 Static 7/2/82 3953 6-11 Static 11/11/82 3942 6-12 Static 11/11/82 3930 12-4A Static 9/8/82 3888 PBU 9/26/82 3840 12-8B PBU 7/6/82 3837 12-9 PBU 7/7/82 3870 13-1 Static 10/22/82 3937 13-3 PBU 8/13/82 3890 Static 10/23/82 3919 13-5 Static 10/1/82 3713 PBU 10/29/82 3875 13-7 Static 8/14/82 3963 13-8 Static 8/14/82 3997 13-10 Static 8/15/82 3986 13-12 Static 8/20/82 4015 13-17 Static 8/8/82 3955 PBU 9/26/82 3940 13-18 Static 8/3/82 3940 PBU 9/28/82 3917 13-19 Static 10/8/82 3926 13-20 Static 8/9/82 3928 PBU 9/26/82 3916 13-22 Static 11/22/82 3912 13-23A Static 10/12/82 3913 13-25 Static 11/23/82 3939 13-32 Static 11/28/82 3982 14-8 PBU 12/31/82 3919 Static 10/24/82 4004 14-9B Static 12/28/82 3988 14-12 Static 8/20/82 3962 PBU 10/9/82 3911 14-13 Static 7/12/82 3960 PBU 10/6/82 3880 14-14 Static 7/12/82 3952 PBU 9/3/82 3936 ~g ~_, ~ .~ ,~ ,~ , {^, ~, a. i°?. /jr~ik ~,t ,- Jt S i ~~~. • Exhibit 9 Page 2 Reservoir Pressure Well No. Type Date At 8800' ss 14-17 Static 11/9/82 3939 14-21 Static 11/14/82 3970 14-29 Static 12/27/82 3938 14-30 Static 12/28/82 3969 k r ~ 4• f't . s r~~ ~ ;~~?,;, ,. ~ ~'' ~ 1':iry~ z 0 14-13 ~r ~ 14-18 14-7 ~ 6-14 ~ 6-4 ~ 6-i3 ~ 6-8 ~ 1-14 ~ 1-2 ~ 1-1 ~ 1-15 ~ 14-5 14-12 14-29 ~ 13-23A 14-14 13-17 13-18 y 12 7 9 1 ~ 1 14-28 ~ 14-26 6-11 ~ 6-12 ~ 6-9 ~ 6-10 ~ 1-7 ~ 1-1 ~ 1-10 ~ i-I1 • 14-6 14-30 ~13-19 13-20 12-19 ~13-24 6-17 12-20 ~ 14-10 • 13-26 ~ ~ 6-6 ~ 13-1 ~ 13-2 ~ 13-3 ~ 12-1 ~ 12-13 14-17 14-8 ~ 12-12 1-18 • 14-98 13-34 1s ~13-32 15 ~ 13-14 ~13-25 13-22 .l3 12-17 -13-21 12-18 17 • 14-22 X13-33 I~ PUT RIVER 18-10-IS ~ 12-5 14-21 14-9A ~13_3O ~ 13-4 ~ 13-5 ~ 12-4A ~ 12-3 14-9 013-29 12-9 13-IS 13-16 13-6 ~ 13-11 13-13 12-16 PUT RIVER X12-7A 13-2 X13-10 ~ 13_7 ~ 19 10-15 ~ 12-10 ~12-7 FS-3 13-12 12-88 12-11 INJECTION P ROJECT AREA 12-15 12-8A 21 22 23 ~13-9 19 20 13-27 13-8 ~12-8 -I ~ PUT RIVER ' 24-10-14 LEGEND • EXISTING OIL PRODUCER ~ .PROPOSED WATER INJECTOR O PROPOSED OIL PRODUCER !7l SUSPENDED OR ABANDONED WELL ~ EXISTING WRG INJECTOR O PROPOSED SOURCE WATER WELL p PROPOSED WRG INJECTOR • EXISTING SOURCE WATER WELL • EXISTING WATER INJECTOR NOTE: WELL LOCATIONS AT TOP OF SADIEROCHIT FORMATION SCALE= I"=2000' R14E R15E EXHIBIT l0 PRUDHOE BAY UNIT FLOW STATION 3 INJECTION PROJECT PROJECT WELLS DRILLED AS OF JANUARY I , 1983 ~3 'i - _ ... ~ ~, ' 'MEMQR DUnA ~ St of Alaska ~ ~ a~L ~ ~ ~~~SER~A~~~ ~~~o~ f - E TO: C ~ to QI3 - DATE: ~dV~bf'r ~ , ~ ~ 8 FILE NO: - ft ~ ~ ~iRU: Lennie ~. ' tai th ~ ,L~°~". C ~ $S~.+C7~I1+Er TELEPHONE NO: FROM: ji11S$ell A« I~ugl$ss ~ SUBJECT: Deter~lnation of Petroleum`R~eservar Eng~neer_ CiZ ~atura~ir~n froffi ~~ C.~s Flooding. Sa.dle- rochft F€~r the past few nth ~e have been investigating the possibilities of running independent laboratary tests tc~ determine residual.... coil ~aturstion (SQr), ~'hia Sar d~~ermin.a.tion. t~cauld be f©r the Pre~dhcse l~aty Sad~erc~chi~ farmati~+n under gas flOOdi~.g at various reservoir. pressres. Tate r~suZts mould indicate the .effect s~f resezevir pressure on ultimate recovery. We have .two c~ptic~ns far this irk. tlr." Earl D~analdscan with the Depa.rtffieht of Energy {DdE) in Sartlesv3.3.1e, l~k2aho~na has the appazatus to run sow: care flor~ding te~ts~ Unless he acquires ec~me tyge raf cc~zpresat~r or gae s lea in pressurised a©ntain~ars he ~c-:t run the teats a.t varyi.x~g gres~ures. If I3rs Donaldson ire to zun these testae :the casts will be l~t.ted tQ p©stage, ;Icing ciist~nc~ telephan+~ calls and consulting fees fta~x H. ~. wen Po4llen, ,An©ther alterxuetie is~ to _eflntre.ct the -rk t0 ~x- orga.nzation ~- wtaieh perfe+r~s this type of stud~- {i.e. Laze Lab) . ~ihile at the ` ~ Technieal. Conference in view t?rleans I had the opportunity tv talk "with Ch~ries; l~arqui~ ~Ir. Me:rquis fs the technic,s2 director. of tie ,special care analysis degartment . cif Cane 1.sb in De.l Iss . Since. have-a gaud handle on the PVT..grapert~.es of S~dlerochit fluidic {gas,.: ail, and water) these may be ~i~x~lated 3.u -the lab. if could acquire two evre plugs {twn" ineh} few the operators we feel aim grelineinary tests could be .run. gas flocsds at, each of three different press~fes ~QC©, 35(10, and 40(10 psi ec~~ d be aeeomplihed fc~r appr©uimstelp $3t1,t14a. Based an the resula of these testa further stndiee could be` ga:c~posed and/or ~esult~a compared with de.~a abta.ined from fihe operators." r- ;~_~. - Backe in Augwr~ a phone wave=satian' with Rmn Bowlers af' Ali indicated the pvssibi3.ity of receiving` the craw data of them gas. . fl©ad : t+asta ar~d their {ARCt3's}; interpretgticn oaf these data.. He alsa indicated r~.llingne~s tc- pzo~de u~ ~rZth :sores .and fluid Temples fear wing our qwn te,~ta. 1 f r {lur best bet would be 'ta ga with Cate Lab and obtain as much data es ARC4 will allow us. ~f course this bxings up a fiscal ~ ode pr©bably can't do it within vat current Prudhoe "~ gr ab lam. centract and if we contract directly with a;special approgxiati€~n we'll have t© Put_it out to bid. f 02-QOlA{Rev.10/79t `, _ f C. V* Chatterton - November 3, 1.982 For probably one.third the cost we can use ice. Donaldson, his ik equipment and Hank''s expertise and probably come up with a'. reasonable data. Of course timing and coordination could become a problem, but as two year time limit Hives us *one leeway in those categories. Hopefully we may discuss these possibilities after the flow s Station 3 Injection Project bear s RAD#be 4 i s r. i ~ 3 `.. ~ `' !VI ~M OR~i~I L~U M St~~e ~fi ~iaska ' OIL AND GAS COIdSF,~TICi`1 COMMISSIORI TO: DATE: C. tenon October 14, 1982 ..-~ ~...~. ., FILE NO: `I'f:IPLI: I,O1C1111.e C. 571i7.th ; ' C.°:~-~ .::.TELEPHONE NO: CCQ13TL1.ss1Cfller FROM: SUE3JECT: Russell A. Douglass ~ Approval of 6~ Petroleum Reservoir Praposa]. Engineer Neither Hank nor I feel triese is any ..reason not too approve Arco's application for additional recovery. The problem Lies in appx~vi.ng .the project as EOR. Of curse ths~is the ap~raval the aperat~rs would most like to see for i-heis tax purposes, and if the cumu.ssioai approves the application but not as EOR, the operators will probably be very miffed, drop tYie ~aroject or appeal the decisic~. Either way it behooves u$ .to c1o .our hccr~rlc in regard to evaluating t.Yie project from the stC~uzdpoint of haw it coir~~axes to conventional. After a11, we are cued with prevention of physical waste which trans- lates into maximizing hydrocarbon ' rucx~very. ,By proving that oonvr`ntiana.l metYiods can indeed produce the saz~ araoLnit of oil as ,the proposed FOR pro- ject, then tYieir pr~a1 would `notmeet ,the first re~c~uirement for approval as a "tertiary recolveery project's `T'he problem rea]1y boils dou+m. to one of eocaiatLi.cs. Can closer welt spacing be accc~~lished for the same cost `as the WI~G~ ..From their report the FdAG is not applicable to the entire field but closer we11 spacing wr~uld be. I realize this could put us, as well as others involved into a rather sticky situation. Of eoitrse if we ~ do¢z~ t evaluate the project iri this light and scx~~eone else does (e.c~. ~M~titchec~i 'et al.) , the situatiarl could becca~~e even stickier. .a 02-001 A(Rev.10/79) ~2 M~MORA~vDUM ALAS OIL t~3D GAS CGNSERVATI TO: C. ~tertOn ~iFiTJ ; Lonnie C. Smith % (". ,,~ ~•C.~ .: ColTmissioner FROM: I37.SSe11 A. Douglass Petroleum ~eseYVOir Engineer r stage ~f Alaska ..b fi7 -0C70rr~[+'LISSIC7N ;. DATE: ,~ _ . . „. > - FILE NO: October 14, ]382 7El,EPFiONE NO: . SUBJECT: I~JAG r~'fodeling As a result of my work in Denv+sr with H. K. van Poollen and Assoc- iates, Inc., we have instigated the following work regarding evalua- tion of the PE3U operators' 4~G proposal. Hank nor I are convinced the [ngiG proposal is a proven and/or viable L~R process. We have beguYi a 3-D cross--sectional mrxlel study which will correspond closely to `'the Arco 3-D cross-section presented in their application. t°dith tlli.s ~mbd~el, .~~ should be able to show that an equivalent increase in recovery (to the WAG) may be acca~~lished with Glaser well spacing. We cannot expect results of the+effort prior to the application hearing. If all goes well, we should have scare results prior to the deadline for approval of the application. In addition to this model, it would benefit us to know the sensitivity of the reservoir fluids to the frijectarit enriched ..gas) cc~osition. For ttu.s purpose a ea:~ositional mrxlel is proposed. Initial.].y, a 1-D, simple core flood mrc7el may be co~istnu-~ted ar~cl as data are acquired fr~n the o~~erator concerning So~.;and core flooding, these can be incor- porated.and a 3-D model generated., With this 3-D nxxlel varying gas carpositicros may be tested. In additic~ to the injectiot sensitivity runs, the period of injection may be studied. Also the effects of reservoir pressure and gas satura- tion can be studied. We hope all of this can be acoa~lished within our fiscal 1983 Prudhoe F3ay contract. All doss-sectic>d runs would be made cn the Prime using lI. K. van Poallen and Associates, ..Inc. , .tea nr~del. Initial 1-D ean- positicnal model runs may also be mad~'o~n the Prime, but for the 3-D onr~aositio~ia7.. model, we may ham to go ~to a larger cc~uter. ,, . y 02-001 A(Rev.10/79) ~# 1 M EMOR~~U DU M ~ ~ Stage ®f Alaska AL~KA OIL AND GA5 CONSE}.~iIATTCfi1 ' OQI'9"~ICS5IC~! TO: C. t+Gr'~An DATE: September 22, 19$2 x, :, - , ~' "FILE NO: `I'HRU: T[mnie C. SyYli.th ~' CCEI'IfLlsslCdler ~ ' ' T(=L' EPHONE' 'NO: 'x FROM: r~c~ll A. DO1KJlaSS ~ _ SUBJECT: ARCO «G Appllcaticn Petxoleurs( Reservoir Engineer ' ~ , Arco lists the three major contributors to a suc;oessful tniAG project as: 1) Adequate volur~~ and source of .enriched gas, 2) 1',elatively high reservoir pressure and 3) Law free gas saturation (~~4~) in project area. At present the source and volume of the enriched gas is available. About 45.50 tM,SCE~'D will be available fran flow station #3. At the end of the 10 year Project this volume is projected to be between 30 and 35 r~C~'Fll, declining ~ ` xess than 30 NY~~YD 2 years after that. 4,7ith the implementation of produced and source water'flood by the r.Lid 1980's pressure will be maintained at a..level conducive to WAG success. 'Ibe free gas saturat+i~ is not easily ascertained. Tlie gasroil contact (GOC) raanitoring program has shown detinit~e dvwrward movement of the gas cap. In additi~ to this 'it leas azxxan sane secol'zdary gas cap for- mati:oll below extensive shales, gas underrunning, gas coning and signifi- cant free gas saturatio,~s in the vicinity of many wellbores. As oil production cxmti.ni~es these will ~ continue to expand in sea2~e throughout the reservoir. At the end of the 10 year t~ project these phencxr.~na could render much of ttie SadlerocYiit reservoir unsuited for the t~G process due to the law gas saturation ~Yuiretrent. The Arco opexated area will be Most affected. due to the cc~nplexity of the interbedded shales in the area. These shales will oantribute to the growth of seccndazy gas caps ar~1 its ' ~'a~-ty drainage in the Arco area. Total pore volume of the proposed A~'vo project area is 1023 B~. Ten percent of this is 102.3 PMM'~2E3. Using a {cjas formation wlume factor of 0.004].5 ~/SCE' this translates into atotal~enriched gas volume of 138 billicm SCE'. 73zis translates `into an average rate for the 10 year project of 37.8 A~~SCFFD of enriched-gas which agrees with Areo's pre- dicted injection volume of 40 N'Y4lSCFPD. If the volume of enriched gas available at FS #3 may be applied to all gathering facilities then a maxitrnun 'of 1023~7i4RF3 can be suoeessfully flooded by any one gathering center.` 'If all 6 facilities are used, a maximum of 6238 P~M~ out of a total reserwir pore volume (in the oil leg) of 40 billion bbl. may be flooc~,;d'or about l6~ of the total. If indeed only 4 facilities may be used., Arco area ' unsuited for C 7AG) that reduces the I~eroentage to about 10 . This .lirsu is tY~e WAG process to much less 02-001 A(Rev.10/79) ^ Russell A. Douglass -2- ARGO Wag Application than 25~ of the Sadlerochit reservoir. Zn one of our meetings with the operators they ventured that 2SY of the reservoir could use the WAG process, As illustrated gas limitations would reduce this considerably, Gf course Arco may feel there is no gas limitation and it is a question that needs to be answered. It is not an easily asked question and could raise a few eyebrows if not handled tactfully.
