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HomeMy WebLinkAbout2007 Deep Creek UnitChevron Kevin A. Tabler Union Oil Company of California Land/Governmental P.O. Box 1 Affairs Manager Anchorage,, AK AK 99519-6247 Ift1h.— 0.0 Tel 907 263 7600 Fax 907 263 7698 Email tablerk@chevron.com RECEIVED MAR 2 7 2008 Alaska Oil & Gas Cons- Comm Anchorage March 19, 2008 Daniel Seamount, 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 Seamount: 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 3rd Annual Reservoir Review. This Review corresponds to events during the 2007 calendar year. The Happy Valley Field has been on production since November 2004. We ask that data provided in Appendix C be kept confidential as it contains proprietary reservoir information that could be used by competitors in the region. Production Update As of December 31St, 2007, the cumulative production from the Happy Valley field is 9,621,806 MCFG and 27,101 BW. Production is from six (6) wells: a. HV -A01 - Lower Tyonek Producer. 410 psig FTP. b. HV -A02 - Lower Tyonek Producer. Current rate 1.6 MMCFGPD/1 BWPD at Current rate 0.05 MMCFGPD/0 BWPD at Union Oil Company of California / A Chevron Company http://www.chevron.com Daniel Seamount, Commissioner Alaska Oil & Gas Conservation Commission March 19, 2008 320 psig FTP. Beluga Upper Tyonek c. HV -A08 - Beluga and Upper MMCFGPD/39 BWPD at 350 psig FTP. d. HV -A09 - Upper Tyonek Producer. 350 psig FTP. 471,187 e. HV -A10 - Upper Tyonek Producer. 500 psig FTP. HV -A09 f. HV -A11 - Upper Tyonek Producer. 350 psig FTP 3,992,291 Tyonek Producer. Current rate .90 Current rate 1.3 MMCFGPD/1 BWPD at Current rate 3.0 MMCFGPD/0 BWPD at Current rate 0.1 MMCFGPD/0 BWPD at Attached in Appendix A 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 at the end of 2006. Reservoir Pressure The average reservoir pressure is estimated to be 1561 psig at year-end 2007. 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 (Appendix C). Cumulative Production The cumulative gas volumes sub -divided by bench as of 12-31-2007 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 in Appendix C (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 well rates and high pipeline pressure render a greater degree of uncertainty to the HV reserves. Union Oil Company of California / A Chevron Company http://www.chevron.com Beluga Upper Tyonek Lower Tyonek HV -A01 2,414,777 HV -A02 471,187 HV -A08 450,353 675,529 HV -A09 1,553,180 HV -A10 3,992,291 HV -A11 64,489 Cum Gas Volume MCF 450,353 6,285,489 2,885,964 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 in Appendix C (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 well rates and high pipeline pressure render a greater degree of uncertainty to the HV reserves. Union Oil Company of California / A Chevron Company http://www.chevron.com Daniel Seamount, Commissioner Alaska Oil & Gas Conservation Commission March 19, 2008 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 0.450 BCF gas and 18,989 BW. Potential uphole Beluga pay exists in the HV -A9 and HV -A10 wells and may be added as reservoir management allows. Two wells were drilled from Pad B in 2007 (#12 & #13) that penetrated the Beluga reservoirs. Initial log analysis indicates Beluga pay in both wells but neither well has been completed at the time of this report. 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 6.285 BCF gas and 1,045 BW. Potential Upper Tyonek pay exists in the HV -A9 and HV -A10 wells. Two wells were drilled from Pad B in 2007 (#12 & #13) that penetrated the Upper Tyonek reservoirs. Initial log analysis indicates Upper Tyonek pay in both wells but neither well has been completed at the time of this report. 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 2.886 BCF gas and 7,067 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. One well was drilled in 2007 (#12) that penetrated the Lower Tyonek reservoirs. Initial log analysis indicates Lower Tyonek pay but the well has not been completed at the time of this report. Pending Projects Planned 2008 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: Union Oil Company of California / A Chevron Company http://www.chevron.com Daniel Seamount, Commissioner Alaska Oil & Gas Conservation Commission March 19, 2008 • HV -A08 - Slickline tag and bailing to remove fill (9/12/07) No shut-in pressure measurements were taken for the year. Surface Safety Valve Testing The SSV's were tested on April 27th, 2007 and October 27th, 2007. Presence of a witness for the AOGCC was waived in both cases. Currently, the HV SSV's are operating with approved tests on all SSV's. The SSV test results for 2007 are attached in Appendix B. Please direct any questions regarding this plan to Keith Lopez, Reservoir Engineer, at 263-7653. Sinerely, evin A. Tabler KAT:JWS:dma Attachments Union Oil Company of California / A Chevron Company http://www.chevron.com Daniel Seamount, Commissioner Alaska Oil & Gas Conservation Commission March 19, 2008 APPENDIX A Union Oil Company of California / A Chevron Company http://www.chevron.com m Happy Valley #01 10,000 1,000 1,500 1,300 1,100 N Q 900 N 7 N N N 700 a m H 500 0 LL 300 100 100 (100) 1/2/2003 7/3/2003 1/2/2004 7/2/2004 1/1/2005 7/2/2005 1/1/2006 7/2/2006 1/112007 7/2/2007 1/1/2008 7/1 /2008 12/31/20 7/1/2009 12/31/20 08 09 Date • Gas • Pressure W M 10,000 1,000 100 Happy Valley #02 u • • 10 (1 00) 1/2/2003 7/3/2003 1/2/2004 7/2/2004 1/1/2005 7/2/2005 1/1/2006 7/2/2006 1/1/2007 7/2/2007 1/1/2008 7/1 /2008 12/31/20 7/1/2009 12/31/20 08 09 1,500 1,300 1,100 N a 900 m L N N 700 rn C 500 CT) O 300 100 • Gas * Exponential from "Q Cum Plot" Date * Hyperbolic 0.4 Forecast • Pressure Happy Valley #08 10,000 1,000 2 ° 100 U U CL M 0 10 1 8/1/200 10/31/2 1/30/20 5/1/200 8/1/200 10/3112 1/30/20 5/1/200 8/1/200 10/31/2 1/30/20 5/1/200 8/1/200 10/31/2 1/30/20 4/30/20 7/31/20 4 004 05 5 5 005 06 6 6 006 07 7 7 007 08 08 08 Date • Gas •TSTFLUID • Pressure 1,500 1,300 500 300 100 (100) 0 LL • Nt « ♦ N 9 RL • • • •wpo• • :� • t • • • 1 8/1/200 10/31/2 1/30/20 5/1/200 8/1/200 10/3112 1/30/20 5/1/200 8/1/200 10/31/2 1/30/20 5/1/200 8/1/200 10/31/2 1/30/20 4/30/20 7/31/20 4 004 05 5 5 005 06 6 6 006 07 7 7 007 08 08 08 Date • Gas •TSTFLUID • Pressure 1,500 1,300 500 300 100 (100) 0 LL 2 c 0 U 7 0 ^L LL 0 co IM Happy Valley #09 10,000 1,000 2,500 2,000 .N a 1,500 1,000 ;.a] 100 _ 1/2/2003 7/3/2003 1/2/2004 7/2/2004 1/1/2005 7/2/2005 1/1/2006 7/2/2006 1/1/2007 7/2/2007 1/1/2008 7/1 /2008 12/31/20 7/1/2009 12/31/20 08 09 Date • Gas • Pressure N LL �. iL ♦ s, 2,500 2,000 .N a 1,500 1,000 ;.a] 100 _ 1/2/2003 7/3/2003 1/2/2004 7/2/2004 1/1/2005 7/2/2005 1/1/2006 7/2/2006 1/1/2007 7/2/2007 1/1/2008 7/1 /2008 12/31/20 7/1/2009 12/31/20 08 09 Date • Gas • Pressure N LL 10,000 U U) 2 1,000 U O Happy Valley #10 s • «• •s•. • t • r ♦ • • 100 1 1 1 1 1 _ 1/2/2003 7/3/2003 1/2/2004 7/2/2004 1/1/2005 7/2/2005 1/112006 7/2/2006 11112007 7/2/2007 1/1/2008 7/1 /2008 12/31/20 7/1/2009 12/31/20 08 09 5,000 4,000 N N N 3,000 a, C H m c 2,000 0 I 1,000 Date • Gas • Pressure ti 1,000 100 Zk • •t • M 10 1/1/2006 Happy Valley #11 2,500 2,000 a 1,500 1,000 500 7/2/2006 1/1/2007 7/2/2007 1/1/2008 7/1 /2008 12/31/2008 7/1/2009 12/31/2009 Date • Gas • Pressure N LL Daniel Seamount, Commissioner Alaska Oil & Gas Conservation Commission March 19, 2008 APPENDIX B Union Oil Company of California / A Chevron Company http://www.chevron.com A,-ska Oil and Gas Conservation Comn..csion Safety Valve System Test Report Operator: UNOCAL Operator Rep: Joe Steele AOGCC Rep: waived Submitted By: Joe Steele Date: 4/27/2007 Field/Unit/Pad: Happy Valley A Separator psi: LPS 310 HPS NIS Well Data Pilots SSV SSSV TestlRetesIISI Date Well Type Well Number Permit Number Separ PSI Set PSI UP Trip Test Code Test Code Test Code Date Passed Retest Or Date Shut In Oil, WAG, GINJ, GAS, CYCLE, S, A-1 2030720 310 300 300 P P GAS A-10 2041860 310 300 300 P P GAS A-11 2042070 310 250 250 P P GAS A-2 2031130 310 250 250 P P GAS A-3 2032220 SI A-4 2032230 SI A-6 2040440 SI A-7 2041060 SI A-8 2041140 310 300 300 P P GAS A-9 2041700 310 250 250 P P IGAS GAS Wells: Remarks: 6 Components: 12 Failures: 0 Failure Rate: 0.00% ❑ 90 Day For valve leak test A-2 and A-11 were depressured to 50 psi through vent stack due to low tubing pressure. RJF 12/21/04 Page 1 of 1 SVS HV A 04-27-07.xls A,-,ka Oil and Gas Conservation Comm.. .ion Safety Valve System Test Well Pressures Report Operator: UNOCAL Submitted By: Joe Steele Operator Rep: Rick Musgrov( Field/Unit/Pad: Happy Valley A AOGCC Rep: waived Date: 4/27/2007 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 0 0 600 No A-10 2041860 0 01 550 No A-11 2042070 0 0 350 No A-2 2031130 0 0 340 No A-3 2032220 A-4 2032230 A-6 2040440 A-7 2041060 A-8 2041140 0 0 450 No A-9 20417001 0 0 400 No Remarks: RJF 09/19/02 Page 1 of 1 SVS HV A 04-27-07.xls Ak.aka Oil and Gas Conservation Comm—cion Safety Valve System Test Report Operator: UNOCAL Operator Rep: Joe Steele AOGCC Rep: none Submitted By: Joe Steele Date: 10/27/2007 Field/Unit/Pad: Happy Valley A Separator psi: LPS 320 HPS NIS Well Data Pilots SSV SSSV 'Test/Retest/SI Date Well Type. Well Number Permit Number Separ PSI Set PSI UP Trip Test Code Test Code Test Code Date Passed Retest Or Date Shut In Oil, WAG, GINJ, GAS, CYCLE, SI A-1 2030720 320 300 300 P P GAS A-10 2041860 320 300 300 P P GAS A-11 2042070 320 250 250 P P GAS A-2 2031130 320 250 250 P P GAS A-3 2032220 SI A-4 2032230 SI A-6 2040440 Sl A-7 2041060 Sl A-8 2041140 320 300 300 P P GAS A-9 2041700 320 250 250 P P IGAS GAS Wells: Remarks: 6 Components: 12 Failures: 0 Failure Rate: 0.00% ❑ 90 Day For valve leak test A-2 and A-11 were depressured to 100 psi through vent stack due to low tubing pressure. RJF 12/21/04 Page 1 of 1 SVS HV A 10-27-07.xls Daniel Seamount, Commissioner Alaska Oil & Gas Conservation Commission March 19, 2008 APPENDIX C Union Oil Company of California / A Chevron Company http://www.chevron.com