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Home My WebLink AboutCO 206 AIndex Conservation Order 206A Milne Point Field 1. November 19, 1996 BP Exploration ltr re: request for Extension of Pool Rules STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage Alaska 99501-3192 Re: THE APPLICATION OF BP EXPLORATION INC. for an order amending Conservation Order 206 (derived from Conservation Order 173, Rule 4(c)) concerning surface casing setting depth in the Cascade Area of the Milne Point Field ) Conservation OrderNo. 206A ) ) Milne Point Field ) Kuparuk River Oil Pool ) ) ) December 31, 1996 IT APPEARING THAT: . BP Exploration (Alaska), Inc. (BPXA), submitted an application dated November 19, 1996 requesting application of Conservation Order 206 to all Milne Point Field well pads including the Cascade Area of the Kuparuk River Oil Pool. 2. Notice of opportunity for public hearing was published in the Anchorage Daily News on November 27, 1996 pursuant to 20 AAC 25.540. 3. No protests to the application were received. FINDINGS: o ConservatiOn Order 349A modified the affected area of the Kuparuk River Field Kuparuk River Oil Pool (KRKROP) to include the lands surrounding the Cascade 1 and lA wells. . Conservation Order 349A, Finding 6 indicates development drilling by BPXA in the vicinity of the Cascade 1 and lA exploration wells has established the presence of oil bearing Kuparuk River Formation which is structurally and stratigraphically equivalent to the KRKROP in Milne Point Unit. 3. The Ugnu and West Sak intervals are hydrocarbon bearing in the Cascade area of the Milne Point Field. 4. The subsurface elevation of the Ugnu and West Sak intervals in the Milne Point Field and Cascade area are located structurally below 2700' and above 5000' subsea. 5. BPXA indicated they will be developing other drilling pads within the Milne Point Field over the life of the project. Conservation Order Nc,~. ,,06A December 31, 1996 Page 2 CONCLUSIONS: Drilling sites developed within the Milne Point Field including the Cascade area will likely encounter hydrocarbon bearing Ugnu and West Sak sands below 2700' and above 5000' subsea. 2. Consistent casing setting requirements will aid efficient development of hydrocarbon resources with the Milne Point Field. NOW, THEREFORE, IT IS ORDERED that Conservation Order No. 206 is hereby amended to read: Milne Point Field development wells to be drilled to the Kuparuk River Oil Pool may be drilled to a maximum 5000' subsea before surface casing is set provided the conductor casing is set and cemented in accord with Conservation Order 173, a diverter system is used in accord with 20 AAC 25.035(b)(1) and a drilling fluid of at least 9.0 pounds per gallon is used in the drilling. DONE at Anchorage, Alaska and dated :Tuckerman Babcock, Commissioner Alaska Oil and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of xvritten notice of the entry of an order, a person affected by it may file with the Conunission an application for rehearing. A request for rehearing must be received by 4:30 p.m. oil the 23rd day following the date of the order, or next xvorking day if a holiday or weekend, to be timely filed. The Cmmnission shall grant or refuse the application in whole or in part within 10 days. The Commission can refitse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Conmfission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Cmmnission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, the 30 day period for appeal to Superior Court hms from the date on which the request is deemed denied (i.e., 10th day after tile application for rehearing was filed). BP EXPLORATION November 19, 1996 David W. Johnson, Chair Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501 - 1433 Re: Request for Extension of Pool Rules Kuparuk River Oil Pool Kuparuk River Field and Prudhoe BaY Field (Conservation Orders 98-A, 173, 206, 349) Dear Commissioner Johnson: BP Exploration (Alaska) Inc. 900 East Benson Boulevard RO. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 RECEIVED NOV ~. 2. 1996 .. Alaska 0il & Gas Cons. Commission Anch0mge BP Exploration (Alaska), Inc., as operator of the Milne Point Unit (MPU), requests the Alaska Oil and Gas Conservation Commission to extend the jurisdiction of the pool rules for the Kuparuk River Oil Pool in Kuparuk River Field to include portions of the "Cascade Area" which are now subject to Kuparuk River Oil Pool Rules of the Prudhoe Bay Field. In addition, BP requests the Commission to revise Conservation Order 206 to include all Milne Point drilling pads. I. Extension of Kuparuk River Field Pool Rules Background. As part of the Milne Point "Cascade Area" development, BP plans to ' develop the following three oil and gas leases to the southeast of the present MPU boundaries: T13N, R11E, U.M.- Sections 27, 28, 33, 34 (ADL-28232) T12N, R11E, U.M.- Sections 1,2, 3, 4, 9, 10, 11, 12 (ADL 375132, 375133) All of this area was originally subject to the initial Prudhoe Bay Kuparuk River Oil Pool (PB KROP) Rules adopted in 1971 (Conservation Order 98-A). Most of the area was removed from the PB KROP and included in separate pool rules for the Kuparuk River Field Kuparuk River Oil Pool (KR KROP) in 1981 (Conservation Order No. 173). The KR KROP area was expanded in 1994 to include the Northwest Milne Point Area (Conservation Order No. 349). BP requests the Commission to remove remainder of the Cascade Area from the PB KROP and include it in the KR KROP. The six sections to be excluded from the Prudhoe Bay rules and included in the Kuparuk River Rules are: -~ .'..'".-, .~. -' .. ,":-. '~ ~. David W. Johnson, Chair Alaska Oil and Gas Conservation Commission November 19, 1996 Page 2 T13N, R11E, U.M. - Sections 27, 34 T12N, R11E, U.M.- Sections 1,2, 9, 10, 11, 12 Geologic and Reservoir Engineering Data. Upper Kuparuk reservoir sands in southeastern MPU are geologically contiguous with Upper Kuparuk reservoir sands at Cascade Area, as verified by 3D seismic and exploration and development wells; however, at Cascade, these reservoir sands are divided between the KR KROP and PB KROP (Attachments 1 and 2). The overall Milne Point structure is a faulted, northwest plunging anticlinal feature that forms a separate trap down dip and northeast of the Kuparuk Field. Seismic interpretation indicates that the main structural trend of the Kuparuk Formation runs from the MPU southeast into the Cascade Area (Attachment 3). Complex faulting has rearranged the overall structure into a series of individual fault blocks, and differential movement along the faults has demonstrably effected the movement of hydrocarbons, generating variable oil water contacts. The producing horizons in southeastern MPU and Cascade are the top two units in the Kuparuk sequence (Cl and B7), which are prolific producers that share a common oil accumulation (Attachment 4). East of Cascade at the PBUEileen exploration well, these Upper Kuparuk sands are wet, providing a geologic boundary between the PB KROP and the KR KROP. Four recent development wells (MPK-13, MPK-30, MPK-37, and MPK-38) tested and proved Upper Kuparuk Reservoir sands on seven of the eight sections requested to be removed from the PB KROP and incorporated into the KR KROP (Attachment 5). Section 27 (ADL 028232) remains to be tested; however, the structure indicates that this section should be included into the Cascade Area. Results from these four wells are as follows: K-13: 56' of oil bearing Cl and B7 sand. OWC penetrated at 7021' tvdss. K-30: 73' of oil bearing C1 and B7 sand. No OWC penetrated. Base of sands at 7057' tvdss. K-37: 60' of oil bearing Cl and B7 sand. OWC penetrated at 7045' tvdss. K-38: 72' of oil bearing C1 and B7 sand. No OWC penetrated. Base of sands penetrated at 7110' tvdss. MPK-30, which currently lies within the PB KROP, is not yet on production; however, openhole logs from MPK-13, MPK-37, and MPK-38 (all within the KR KROP) indicate rock properties very similar to MPK-30, with comparable geometries and thicknesses. K RECEIVED ~,~0\/ 2 2. 1998 Alaska 011 & Gas Cons. Commission David W. Johnson, Chair Alaska Oil and Gas Conservation Commission November 19, 1996 Page 3 Pad well formation pressures within the KR KROP area are between 3600-3700 psi, and drilling parameters do not indicate that MPK-30 varies from this value. No fluid sampling has been attempted on any of the existing K Pad producers, but their production behavior is consistent with MPU Kuparuk B7 and Cl producers to the north and west (B and E Pad). By analogy, there is little reason to suspect any significant differences between fluid properties in MPKo30 (PB KROP) and other aforementioned K-Pad wells (KR KROP). Based on available data, the Upper Kuparuk (B7 and Cl) in both these areas is geologically and hydraulically contiguous. Conclusion. All available geological and reservoir engineering data support the conclusion that the productive formation underlying southeastern Cascade is an extension of the productive Upper Kuparuk Formation found in central and northwestern Cascade and in the Milne Point Unit. Our request for the Kuparuk River Oil Pool RI~ to be extended to include the southeastern Cascade Area is based on the conclusion / that the Upper Kuparuk Formation found in the four development wells, MPK-37, MPK-I 38, MPK-30, and MPK-13, is the same productive formation found in the remainder of ~ central and northwestern Cascade Area and the Milne Point Unit. /,/----" II. Extension of Conservation Order 206 Background. Conservation Order 206 amended the Kuparuk River Oil Pool surface casing requirements prescribed by Rule 4(c) of Conservation Order No. 173 in the area of drilling pads A, B, C, D, E, F, L and Central Facilities. Under Conservation Order No. 206, Kuparuk River Oil Pool development wells on the eight specified drilling pads may be drilled to a maximum 5000 feet true vertical depth before surface casing is set, provided other specified conditions are met. BP requests the Commission to extend Conservation Order No. 206 to Kuparuk River Oil Pool development wells drilled in the Milne Point Field, including the Cascade Area and K pad. Justification. In support of Conservation Order No. 206, the Commission found that the hydrocarbon-bearing Ugnu and West Sak sands in the Kuparuk River Field are potential reservoirs and exist in the eight drilling pad area. The Commission further found the West Sak sands are structurally located so as to be at or below the maximum surface casing setting depth of 2700 feet true vertical depth prescribed in Rule 4(c) of Conservation Order No. 173. The Commission concluded a surface casing string setting depth deeper than prescribed by Rule 4(c) of Conservation Order No. 173 was safe and would protect the permafrost in the area of the eight drill pads. The Commission further concluded development wells to be drilled to the Kuparuk River Oil Pool on the referenced eight pads could be safely drilled to 5,000 feet true vertical depth using a conductor casing, a diverter system and no less than 9.0 poundS per gallon drilling fluid. RECEIVED NOV 2 2. 1996 Alaska 011 & (las Cons. commission Anchoraga David W. Johnson, Chair Alaska Oil and Gas Conservation Commission November 19, 1996 Page 4 The well logs in Attachments 6 and 7 are representative of the stratigraphy in the areas of the Milne Point Field. As is demonstrated by the well logs, the West Sak and Ugnu sands are hydrocarbon bearing. Attachment 8 is a hydrocarbon foot map for the Schrader Bluff Formation. This map shows the areal distribution of hydrocarbons in the Schrader Bluff Formation which is equivalent to the upper West Sak and the lower Ugnu Reservoirs (Attachment 9). As Attachment 8 shows,, hydrocarbons are present at other drilling pads in the Milne Point Field, as it is in the original eight drilling pads covered by Conservation Order No. 206. A depth structure map at the top of the Schrader Bluff Reservoir shows that the oil reservoirs are below the maximum surface casing setting depth of 2700 feet true vertical depth (TVD) prescribed in Rule 4(c) of Conservation Order No. 173 and above the 5000 feet TVD as required by Conservation Order No. 206. BP plans to drill additional Kuparuk River Oil Pool wells in the Miine Point Field from drilling pads other than eight originally specified in Conservation Order 206. In order to provide consistent casing requirements throughout Milne Point, BP requests that all of the Milne Point Field, including the Cascade Area, be included in Conversation Order No. 206. We are planning to meet with Bob Crandall next week to discuss this and other Miine Point pool rule matters. In the meantime, please contact me at 564-5232 if you or your staff have any questions or requi~additional information. Sincerely, /¢,//~ ,,,,/.//-// Bruce ~olicky , ~ Milno ~oint [xplotation~ana~or cc: Bob Crandall Enclosures David W. Johnson, Chair Alaska Oil and Gas Conservation Commission November 19, 1996 Page 5 bcc: Mark Berlinger Jeanne Dickey Howard Mayson Tom Niswander James Robertson FIDL FIDL 38 9 STRTUTE HILESB I 1: 12B00 1 KILDHETERS B FIDL 3 I Milne Po 0282 I 2 STRTUIE HILES · 9~. PD K gt~Y 10 :. 3?5 1 3 - 5KILOHETER5 ~ounda DL 028232 . . . -.. 1i FIDL 3 t~C] GROSS INTERVRL ISDPflEH MILNE POINT K PRO RRER Attachment 1 TKB7 GROSS INTERVRL ]SOPflCH MflP MILNE POINT K PflD flRER 1:12000 KILOMETERS B ! 2 KILOMETERS HILESB ! 25TflTUTE MILES Attachment 2 CflSCflBE ~RE~ TOP LEOENI3 ~ PROOUCIION NELL I~"' NRG 1NJ NELL ~ FIDFINDONED NELL 85N (ll/6/g6) STRUCTURE MBP Attachment 3 MARKER PROJECT MPK-3 8 50029-2264900 MILNEPT 1 ST LOG: 04/04/96 TYPI-.: I.(')(}- 08-93 ll/13/9613:45:06 DEPTH UNIT- FEET COMMENT: NONE 0.2oDER MWI~)o SP-D[I. o ss o. :oI!!WR NiWt~o (}RMM ,.'vl~.I9 DEPTH MD o. '{~I(',,VI~ NIW~',)o i. 65R. H('!? Nlvg.[3 (~!$ ..... · n, ,(~i,-~ 7000 DEPTH ~ 60 NP[-'[I M3vVi~) ' and ' - - ::::::::::::::::::::::::: ~ ~ , .i...!.. - .... ::...i...!...~...~ . _ RECEIVED · ~,laska Oil & Gas tSons. Gammiss~O~ Anchora. ga Attachment 4 Milne Point bni~ Boundary HPE-08 HPE_06 .. ~ MPE -0,t ' LEGEND HPK-38 ' HPK-37 ..... . PRUDHDE-BI ~ aDL 375 133' aDL '375 132 P~ .RoP IBLUE] ............................. ,~ I t iPrudhqe Bay~ UniL ¢ound I t I I NELL LDCFITIONS IN CASCADE AREA Attachment 5 J BP EXPLORATION PROJECT ' MILNEPT FULL NAME ' MILNE POINT DESCRIPTION ' Milne Point WELL - MPj--O~ FULL NAME - MPJ--04. ,.., .... TVD,.,'C.~F ............ , SP'-- C ~ ~.:_ -, , M :, :..,,. ............. , .... "r,,; ~, .~,._~.y :.,j-', .. ~,~; O~a;! (FT) - 0 i5~ MD · ,-,.. . ..Z- 200 1 .6,_5 2.6 "~-'- 3200 -.~' _ 4650 --~ ~.. ~ J 3250 ,~ ~ IIIIIII 11~~!111111, ~-- 4e5o I ---- I :~__.~ -,-~,,, ,., ~ ,,, ,., }11111I. ~IL~ 1111111 ~ 34-00 i- 4900 , , - . 4950 ~ ~-' I 3450 I - '"~=:; ~ ~ 3600i ~ ~ 00 ~-~ 3650I ~ 3700 - 5300 ' I~--'-'~_ 3,750 -- ~,_~_~, -~,o IIIIIII -~4111111 IIIIII1' ~-~ .~~- S(;HRADER~.U .~_-> 4~oo- asoo . _ ~ 4~5o -~- ATTACHMENT 6! BP EXPLORATION PROJECT : MILNEPT FULL NAME : MILNE POINT DESCRIPTION : Milne Point Unit WELL : MPK--38 FULL NAME : MPK--38 ..... '"' ' I ~ - I ~9oo[ 395° ~: =='"~__~ _ 4000 .c ~--~. 4O0O · ~ TOP UGNU I ~ 4050 --"- ..,,__ ~ 4100 ' ~' ~. ] 415o · ;~ 4250 '---- ~-- ---.__ 4.300 -- 4350 ~----------~__ ==. _ _ 4450 -- ~ 4400 ' .~ -'--' . 4500 : ~.._.~ -~-- ~_.~0qllllll -~111 IIIIIiil - -~- $ Dt tFi ADI=F BLUI--I - 4600 -- ~~" 4550 ~ ~-- - 4650 '~ ' ~ ~ 4600 ~ : .~ 4650- ,,,50 -~-..__ ~-~r~oo_~ooo IIIIIII =~ IIIIIIII i ~'~ --__~ _~oIIIIII1-~111111 IIIIIIII ~. 4750 , _ '~" ._~ .~oo IIIIIIl._.,~llll IIIIIIII I :~' 'r~ 4800 -~: ---~. IIIIIII ~iii1111 IIIIIIII .~ ~"'~' - 4950 ATTACHMENT O nl z BPX ALASKA- Milne Point Unit Schrader Bluff Hydrocarbon Foot Map L Pad Pad ,! A i' Shallow Oil Sands Nomenclature I Ill TYPE LOG TERMINOLOGY InformalInformalFormal MILNE POINT UNIT AGE Milne Point Kuparuk North Slope Unit River Unit Gamma Ray Resistivity GP FORMATION ~ K U - Sands P SAGAVAN- F-- P IRKTOK re . E m L R ~ Sands UGNU SANDS M PRINCE Sands L CREEK 0 C - W o ~ N R L D E Sands V SCHRADER ,F I BLUFF A 0 WEST L ~ Sands SAK L SANDS E IIIIIlll I ATTACHMENT 9 ATTACHMENT 10