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Home My WebLink About2006 Deep Creek UnitChevron Kevin A. Tabler Chevron North America Land/Governmental Exploration and Production Affairs Manager 0.0 P.O. Box 196247 WN.— MidContinent/Alaska SBU Anchorage,AK 99519 6247 Tel 907 263 7600 7 Fax 907 263 7698 Email tablerk@chevron.com RECEIVED MAR 2 9 2007 March 28, 2007 Alaska Oil & Gas Cons. Commission Anchorage John Norman, Chairman Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 DEEP CREEK UNIT HAPPY VALLEY FIELD STATE OF ALASKA ANNUAL RESERVOIR REVIEW Dear Commissioner Norman: In accordance with Conservation Order No. 553, Union Oil Company of California, as Operator, respectfully submits the following Annual Reservoir Review for the Happy Valley Field. This is the 2nd Annual Reservoir Review. This Review corresponds to events during the 2006 calendar year. The Happy Valley Field has been on production since November 2004. We ask that this annual reserve data be kept confidential as it contains proprietary reservoir information that could be used by competitors in the region. Production Uudate As of December 31St, 2006, the cumulative production from the Happy Valley field is 6,849,383 MCFG and 13,449 BW. Production is from six (6) wells: a. HV -A01 - Lower Tyonek Producer. 690 psig FTP. b. HV -A02 - Lower Tyonek Producer. Current rate 1.7 MMCFGPD/1 BWPD at Current rate 0.05 MMCFGPD/O BWPD at John Norman, Commissioner Alaska Oil & Gas Conservation Commission March 28, 2007 Page 2 450 psig FTP. Beluga Upper Tyonek c. HV -A08 - Beluga and Upper MMCFGPD/85 BWPD at 550 psig FTP. d. HV -A09 - Upper Tyonek Producer. 425 psig FTP. 454,052 e. HV -A10 - Upper Tyonek Producer. 700 psig FTP. HV -A09 f. HV -A11 - Upper Tyonek Producer. 450 psig FTP 2,806,087 Tyonek Producer. Current rate 2.2 Current rate 1.5 MMCFGPD/1 BWPD at Current rate 3.3 MMCFGPD/0 BWPD at Current rate 0.1 MMCFGPD/0 BWPD at Attached is a production graph for each well. Note that the production rate increases evident on the plots reflect the start-up of compression operations on the "A" pad. Reservoir Pressure The average reservoir pressure is estimated to be 1925 psig at year-end 2006. This pressure is based on the HV -A10 well and corresponds to the 6700' TVD datum referenced in CO #553. The HV -A10 well produces dry gas with no fluid and thus is an excellent pressure measurement point. The HV -A10 pressure was last measured on May 18, 2006 at 2150 psig. The year-end pressure was estimated using the established trend on the P/Z plot. Cumulative Production The cumulative gas volumes sub -divided by bench as of 12-31-2006 are as follows: Reserves The Happy Valley field wells are generally produced on a continual basis. Well rates are not usually varied. Due to the low quality of these reservoirs, the wells are produced to maximize drawdown and rate. Shut-ins are generally brief as to prevent any cross flow and potential reservoir damage. However, every opportunity to obtain a static reservoir pressure is captured for reserve quantification. A P/Z graph for three (3) of the producing wells is attached (HV -A1, HV -A2, and HV -A10). Material Balance work in conjunction with decline curve analysis is used to quantify reserves for the Happy Valley field; however, the low Beluga Upper Tyonek Lower Tyonek HV -A01 1,827,170 HV -A02 454,052 HV -A08 280,823 421,234 HV -A09 1,032,909 HV -A10 2,806,087 HV -A11 27,108 Cum Gas Volume MCF 280,823 4,287,338 2,281,222 Reserves The Happy Valley field wells are generally produced on a continual basis. Well rates are not usually varied. Due to the low quality of these reservoirs, the wells are produced to maximize drawdown and rate. Shut-ins are generally brief as to prevent any cross flow and potential reservoir damage. However, every opportunity to obtain a static reservoir pressure is captured for reserve quantification. A P/Z graph for three (3) of the producing wells is attached (HV -A1, HV -A2, and HV -A10). Material Balance work in conjunction with decline curve analysis is used to quantify reserves for the Happy Valley field; however, the low John Norman, Commissioner Alaska Oil & Gas Conservation Commission March 28, 2007 Page 3 well rates and high pipeline pressure render a greater degree of uncertainty to the HV reserves. As mentioned in the "Production Update" section, compression was installed on the "A" pad in 2006. Well rates and performance have improved since that time due to the ability to flow the wells to lower flowing tubing pressures. This investment will help ensure that reserve recovery of completed sands is maximized. Reservoir Summary Beluga - Currently open in solely the HV -A8 well. The HV -A8 well is also producing from the Upper Tyonek formation. Through downhole measurements 40% of the gas is associated with the HV -A8 Beluga. The cumulative production from the Beluga is 0.281 BCF gas and 5,543 BW. Potential uphole Beluga pay exists in the HV -A9 and HV -A10 wells and may be added as reservoir management allows. Additional offset locations may exist for future development from Pad B. Upper Tyonek - Currently open in HV -A8, HV -A9, HV -A10, and HV -A11. The cumulative production from the Upper Tyonek is 4.287 BCF gas and 985 BW. Potential Upper Tyonek pay exists in the HV -A9 and HV -A10 wells. Additional offset locations may exist for future development from Pad B. Lower Tyonek - Currently open in HV -A1 and HV -A2. The cumulative production from the Lower Tyonek is 2.281 BCF gas and 6,921 BW. The Lower Tyonek has been tested in HV -A3, HV -A4, HV -A6, HV -A7, and HV -A11. Economically producible gas in the Lower Tyonek has only been found in wells HV -A1 and HV -A2. Pending Projects Planned 2007 gas development work includes the drilling of two additional gas wells on the "B" pad and associated lines and equipment to tie the wells back to facilities on the "A" pad. The drilling of both a water and a cuttings disposal well is also being considered. Testing and Monitoring The Happy Valley wells are tested regularly and reported monthly. Surveys and diagnostic wireline operations conducted during the year are as follows: • HV -A08 - Flowing gradient survey (12/1/06) • HV -A10 - Slickline tag to ensure no fill accumulation in wellbore (12/4/06) Shut-in pressure measurements for the year are as follows: Date Well Duration Bottomhole Press, Asia John Norman, Commissioner Alaska Oil & Gas Conservation Commission March 28, 2007 Page 4 1/19/06 HV -A01 1 hr 2158 5/19/06 HV -A01 1 hr 1800 2/14/06 HV -A02 292 hrs 2417 1/13/06 HV -A10 1 hr 2299 2/21/06 HV -A10 1 hr 2237 2/21/06 HV -A10 4 hrs 2280 5/18/06 HV -A10 1 hr 2150 Surface Safety Valve Testing The SSV's were tested and witnessed November 7th, 2006. Currently, the HV SSV's are operating with approved and witnessed tests on all SSV's. The SSV test results for 2006 are attached. Please direct any questions regarding this plan to Keith Lopez, Reservoir Engineer, at 263-7653. Sincerely, Gci ` Kevin A. Tabler KAT:JWS:dma Attachments 2 _ 0 0 L a U) m 10,000 1,000 Happy Valley #01 • • r s ♦ .• • • 100 10/1/2004 4/19/2005 11/5/2005 5/24/2006 Date • GAS • FTP MSCFD 12/10/2006 6/28/2007 3,000 2,500 .y Q 2,000 1,500 1,000 500 U) N L a Z �3 0 Happy Valley #02 3,500 - - - Date • GAS • FTP MSCFD 3,000 2,500 N C. 2,000 d N N i 0- 1,500 1,500 c tm 1,000 3 0 M 500 3,000 - - - 2,500 • V � N • 2,000 C • 0 ♦ • P 0 1,500 a o.. • • . « 1,000 500 «« .. -A" 4w - • 10/1/2004 4/19/2005 11/5/2005 5/24/2006 12/10/2006 6/28/2007 Date • GAS • FTP MSCFD 3,000 2,500 N C. 2,000 d N N i 0- 1,500 1,500 c tm 1,000 3 0 M 500 Happy Valley #08 3,500 Date • GAS • FTP MSCFD 6/28/2007 3,000 2,500 1,000 = 3 0 M 500 3,000 - 2,500 - co .. �.. 2,000-• •�- - - - - - c 1,500 -•- - - 1,000 ....'». 40 500 w 10/1/2004 4/19/2005 11/5/2005 5/24/2006 12/10/2006 Date • GAS • FTP MSCFD 6/28/2007 3,000 2,500 1,000 = 3 0 M 500 2,000 1,800 - 1,600 - p 1,400 U) 2 1,200 CF 1,000 •a LL- 800 IL 600 400 Happy Valley #09 so ...� . 00 .. e 200 10/1/2004 4/19/2005 11/5/2005 • 5/24/2006 Date GAS E FTP MSCFD 3,000 2,500 .N Q. 1,500 c 12/10/2006 6/28/2007 1,000 3 0 500 5,000 4,000 V co 2 _ 3,000 'c L- CL 2,000 1,000 Happy Valley #10 1/1/2004 12/31 /2004 12/31/2005 12/31/2006 1/1/2008 Date • GAS • FTP MSCFD 12/31/2008 12/31/2009 3,000 2,500 ii CL 2,000 d N L 1,500 a� 1,000 3 0 FL 500 12/31/2010 N r •. • ♦ • 1M• »► M •N N �• • N1 • • M M ' 1 t 1/1/2004 12/31 /2004 12/31/2005 12/31/2006 1/1/2008 Date • GAS • FTP MSCFD 12/31/2008 12/31/2009 3,000 2,500 ii CL 2,000 d N L 1,500 a� 1,000 3 0 FL 500 12/31/2010 120 100 80 CO m C ° 60 -a 0 IL 40 20 • • :'!A'rl Happy Valley #11 1/1/2005 1/1/2006 1/1/2007 1/1/2008 Date • GAS • FTP MSCFD 1/1/2009 1/1/2010 3,000 2,500 2,000 m 7 N N d s- 0- 1,500 a 1,500 c 1,000 3 0 500 Alaska Oil and Gas Conservation Commission Safety Valve System Test Report Operator: UNOCAL Operator Rep: Rick Musgrove AOGCC Rep: Jeff Jones Submitted By: Joe Steele Date: Field/Unit/Pad: Happy Valley A Separator psi: LPS 300 HPS 7 -Nov -06 Well Data Pilots SSV SSSV TestlRetestlSI Date Well Type Well Number Permit Number Separ PSI Set PSI L/P Trip Test Code Test Code Test Code Date Passed Retest Or Date Shut In oil, WAG, GINJ, GAS, CYCLE, SI A-1 2030720 300 300 300 P P GAS A-10 2041860 800 600 610 P P j GAS A-11 2042070 300 300 300 P P GAS A-2 2031130 300 300 300 P P GAS A-3 2032220 S1 A-4 2032230 SI A-6 2040440 S1 A-7 2041060 Sl A-8 2041140 800 600 600 P P GAS A-9 2041700 3001 300 300 P P IGAS Wells: Remarks: 6 Components: 12 Failures: 0 Failure Rate: 0.00% ❑ 90 Day RJF 12/21/04 Page 1 of 1 SVS HV A 11-07-06.xls Alaska Oil and Gas Conservation Commission Safety Valve System Test Well Pressures Report Operator: UNOCAL Operator Rep: Rick Musgrov( AOGCC Rep: Jeff Jones Submitted By: Field/Unit/Pad: Happy Valley A Date: Well Data Well Pressures Gas Lift Waiver Comments Well Number Permit Number Inner PSI Outer PSI Tubing PSI Yes/No Yes/No A-1 2030720 A-10 2041860 A-11 2042070 A-2 2031130 A-3 2032220 A-4 2032230 A-6 2040440 A-7 2041060 A-8 2041140 A-9 2041700 Remarks: RJF 09/19/02 Page 1 of 1 SVS HV A 11-07-06.xls