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Home My WebLink About2009 Deep Creek UnitChevron Paul M. Winslow RECEIVED Petroleum Engineer Advisor MCA Asset Development APR 2 7 2010 . QII &%6 GM. CMlmW10" AndoW April 27, 2009 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 2009 ANNUAL RESERVOIR REVIEW Dear Commissioner Seamount: Union Oil Company of California 3800 Centerpoint Dr., Suite 100 Anchorage, AK 99503 Tel 907 263 7600 Fax 907 263 7698 Email tablerk@chevron.com In accordance with Conservation Order No. 553, Union Oil Company of California ("Union"), as Operator, respectfully submits the following Annual Reservoir Review for the Happy Valley Field. This is the 5th Annual Reservoir Review and corresponds to events during the 2009 calendar year. Note that the Happy Valley Field has been on production since November 2004. Production Update Two (2) new Happy Valley wells were brought on production in 2009. HV -B13 was originally drilled in early 2008 and was completed in the Tyonek T-17 sand. The well was flow tested from April to June, 2008 and then shut-in until permanent facilities were installed on the Happy Valley 'B' pad. Before bringing HV -B13 back on production, the T-17 interval was isolated (with a bridge plug) and two other Tyonek intervals were perforated, the T-13 and the T-10. The T-10 interval was subsequently fracture stimulated prior to putting the well on production. Due to the relatively low productivity of the T-10 and T-13 intervals, additional perforations were added in the Tyonek T-7, T -6B, T-5, T-4, and T -4A intervals, as well as in the Beluga BLG-130 sand. Union Oil Company of California / A Chevron Company http://www.chevron.com 2009 Annual Reservoir Review Happy Valley Field May 27, 2010 The HV -B12 well was drilled in late 2007 and left un -completed until the production facilities at the 'B' pad were finished. In June, 2009 the Tyonek T-155, T-140, T- 130, and T-105 intervals were perforated and fracture stimulated. After producing for four months, three additional Tyonek zones were added to the completion, the T-91, T-90, and T-70 intervals. As of December 31St, 2009, the cumulative production from the Happy Valley field was 14,031,547 Mcf of gas and 43,083 Bbl of water. Eight (8) Happy Valley wells produced during 2009, of which seven (7) are still on production. The wells are currently producing at the following rates: a. HV -A01 - Lower Tyonek Producer. Current rate -1.1 MMcf/d & 1 bwpd, at 275 psig FTP. b. HV -A02 - Lower Tyonek Producer. Current rate -0.5 MMcf/d & 0 bwpd, at 270 psig FTP. c. HV -A08 - Beluga and Upper Tyonek Producer. Current rate -0.5 MMcf/d & 1 bwpd, at 275 psig FTP. d. HV -A09 - Upper Tyonek Producer. Current rate -1.2 MMcf/d & 0 bwpd, at 280 psig FTP. e. HV -A10 - Upper Tyonek Producer. Current rate -2.0 MMcf/d & 0 bwpd, at 315 psig FTP. f. HV -A11 - Upper Tyonek Producer. HV -A11 is currently shut-in. g. HV -11312 - Lower Tyonek Producer. Current rate -0.9 MMcf/d & 0 bwpd, at 300 psig FTP. h. HV -11313 - Upper Tyonek Producer. Current rate -0.5 MMcf/d & 0 bwpd, at 300 psig FTP. Appendix A contains the production plots for each Happy Valley well. Reservoir Pressure There are currently several different formations (Beluga & Tyonek) and numerous sand intervals open to production at Happy Valley. Because all of the Happy Valley wells have commingled production (from numerous intervals), it is difficult to obtain individual reservoir pressures and is thus difficult to calculate Gas -in-place volumes from material balance. Secondly, very few pressure data points have been taken over the past few years, due to the fact that most wells produce some water with the commingled gas. Shutting in a well that makes any appreciable amount of water puts the gas production/reserves at risk. The only Happy Valley reservoir pressure information gathered during 2009, was from completion and/or re -completion of HV -B12 and HV -B13. Pressures were gathered during the pre -fracture injectivity tests, conducted on the T-155, T-140, T-130, & T-105 intervals in HV -B12 and on the T-10 interval in HV -B13. The various intervals had pressure gradients that averaged 0.478 psi/ft. With the exception of HV -B12 and HV -B13, no other reservoir pressure data was obtained at Union Oil Company of California / A Chevron Company http://www.chevron.com 2009 Annual Reservoir Review Happy Valley Field May 27, 2010 Happy Valley during 2009. Cumulative Production As previously mentioned the cumulative production from the Happy Valley field was 14,031,547 Mcf of gas and 43,083 Bbl of water, through December 31St, 2009. The cumulative produced gas volumes, sub -divided by well and formation (through 12/31/2009) are as follows: Reservoir Summary Beluga - The Beluga formation is currently open in only the HV -A8 and HV -1313 wellbores. The HV -A8 well is also producing from the Upper Tyonek formation, at a production split of 40% Beluga and 60% Tyonek (determined from downhole measurements). The HV -1313 wellbore is perforated in eight different Upper Tyonek intervals, in addition to one Beluga interval (BLG-130). The latest flowing pressure/temperature survey (12/19/09) did not show any production coming from the BLG-130 perforations. Through December, 2009, the cumulative production from the Beluga is 0.626 BCF gas and 33,391 BW. Potential uphole Beluga pay exists in the HV -A9, HV -A10, HV - B12, and HV -1313 wells and will be added as reservoir management allows. Additional offset locations may exist for future development from the Pad B. Upper Tyonek - The Upper Tyonek formation is currently open in the HV -A8, HV - A9, HV -A10, HV -A11, and HV -613 wellbores. The cumulative production from the Upper Tyonek is 9.252 BCF gas and 1,283 BW. Additional Upper Tyonek potential pay exists in the HV -A9, HV -A10, and HV -1312 wells. Additional offset locations may exist for future development from the Pad B. Union Oil Company of California / A Chevron Company http://www.chevron.com Beluga Upper Tyonek Lower Tyonek HV -A01 3,323,354 HV -A02 663,789 HV -A08 626,248 939,371 HV -A09 2,417,749 HV -A10 5,662,084 HV -A11 135,554 HV -1312 166,452 HV -1313 96,946 Cum Gas Volume MCF 626,248 9,251,704 4,153,595 Reservoir Summary Beluga - The Beluga formation is currently open in only the HV -A8 and HV -1313 wellbores. The HV -A8 well is also producing from the Upper Tyonek formation, at a production split of 40% Beluga and 60% Tyonek (determined from downhole measurements). The HV -1313 wellbore is perforated in eight different Upper Tyonek intervals, in addition to one Beluga interval (BLG-130). The latest flowing pressure/temperature survey (12/19/09) did not show any production coming from the BLG-130 perforations. Through December, 2009, the cumulative production from the Beluga is 0.626 BCF gas and 33,391 BW. Potential uphole Beluga pay exists in the HV -A9, HV -A10, HV - B12, and HV -1313 wells and will be added as reservoir management allows. Additional offset locations may exist for future development from the Pad B. Upper Tyonek - The Upper Tyonek formation is currently open in the HV -A8, HV - A9, HV -A10, HV -A11, and HV -613 wellbores. The cumulative production from the Upper Tyonek is 9.252 BCF gas and 1,283 BW. Additional Upper Tyonek potential pay exists in the HV -A9, HV -A10, and HV -1312 wells. Additional offset locations may exist for future development from the Pad B. Union Oil Company of California / A Chevron Company http://www.chevron.com 2009 Annual Reservoir Review Happy Valley Field May 27, 2010 Lower Tyonek - The Lower Tyonek formation is currently open in the HV -A1, HV - A2, and HV -1312 wellbores. The cumulative production from the Lower Tyonek is 4.154 BCF gas and 8,409 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, HV -A2 and HV -612. Pending Projects There are currently no plans to drill any new wells at Happy Valley during the 2010 calendar year. Capillary tubing strings (chemical injection lines) may be installed in HV -A8, HV -B12, and HV -1313, to help unload the water that is being produced with the gas. Currently, soap sticks are being dropped in the wells every 2-3 days, which help the gas lift the produced fluids (water & diesel from the fracs). In the case of HV -B12 and HV -B13, the capillary tubing strings should help the wells recover more of the fluids lost to the various Tyonek intervals during the fracture stimulation operations. These two wells will continue to be monitored to evaluate the stimulation treatments. Testing and Monitoring The Happy Valley wells are tested regularly (several times monthly) and allocated production numbers are reported to the state monthly. In addition to the well testing, the wellbores are routinely (daily) monitored for any casing or tubing pressure anomalies. Surface Safety Valve Testing The SSV's were tested on April 22"d, July 22"d, and November 19th, 2009. These tests were witnessed by Lou Grimaldi, Jeff Jones, and Jeff Jones, respectively for the AOGCC. Currently, the HV SSV's are operating with approved tests on all SSV's. The SSV test results for 2009 are attached in Appendix B. If you have any questions regarding this annual reservoir review, please contact me at your earliest convenience (263-7629). Sincerely, Paul M. Winslow Attachments Union Oil Company of California / A Chevron Company http://www.chevron.com 2009 Annual Reservoir Review Happy Valley Field May 27, 2010 APPENDIX A Happy Valley Field Well Production Plots Union Oil Company of California / A Chevron Company http://www.chevron.com 100 APPENDIX Happy Valley #1 - Production History (daily allocations) Gas Rate FTP 77- 3 APPENDIX A .. •• • • •. mmmmmmmm pill fell IMI mono MEN MEN ----------------------------- ------------------------------- APPENDIX A ME ME *Gas Rale 0 moo= orFTP ME INN RWVwb ollim No was MEN ftwR:!:q" 10000 1000 100 APPENDIX A Happy Valley #9 - Production History (daily allocations) Date NINE wmm i �■■■■■■■�■■� ■■ ■�■■ mm FTP I. ■■■■� ■■■■ ■■ ■■�■ MEMO ■r■ ■i Ydon mm ME ��■ rc� ■� �� m�RCmmm■gym .spa ■ ■■ �■ .gym■■o ■■ ■■ ■��■� MENEM■ ■■SN■6: : �.wpm am■m w■� - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Date APPENDIX A • • 1 • • • • • . • • '�i■■■ ■i■.■ ■.■■■■■■■■■moi■■ ��■■ - �■i m■■■■■■� ■■■■■■mmom ■� �■ MEMO ■■m ■S■ OMEN �■ NINE III Ong I 111 �,...� �;. . �..�,�_� �r� �� ■�iii� i ■��■�i� �w ■ ■■ ■� ■■■�iMEN 0 mom�IIIII�III 1.74WEEM■MEMO �� II��nIII� � 11 .. .. .. .. .. .. . APPENDIX A rTTATm.. . . .. life *Gas Rate ■■■■�� ■ ■mm ■i�■■■ �■■FTP■ ■■■■■■ ■ OWN� ■■■■■■■�__ �■ ■ ■!�!�!■ ■ ■■■■■■■■ ■■ ■ 'iii ��_�%�i� �� ■ � 'z�■w' � ■■r■ ■■ ■ ■■ ■■■ON■ � know ■■ I milli mill t■�■■"■ NONE■■■mo■ ■■ �■ ■ ■■■w O■■■ ■■ ...... .. ...... . ... -_-----_---= --- -----------=- APPENDIX A Happy Valley #12 - Production History (daily allocations) 10000 --- - -- *Gas Rate FTP 1000 0 U: ---4- $ p 4w 0 -44*414— _0 100 i Q) Q� Date APPENDIX A Happy Valley #13 - Production History (daily allocations) 10000 Date -- ♦ Gas Rate --- - --- --- - — - ♦ FTP 1000 • r w 100 4> O O O O O O O O 0 O O O 0 O O 0 O O O O O O O O Date 2009 Annual Reservoir Review Happy Valley Field May 27, 2010 APPENDIX B Happy Valley Field 2009 Safety Valve System Test Reports Union Oil Company of California / A Chevron Company http://www.chevron.com Alaska Oil and Gas Conservation Commission Safety Valve System Test Report Operator: Chevron Operator Rep: Steve Tanner AOGCC Rep: Lou Grimaldi Submitted By: Jamie Katz Date: 22 -Apr -09 Field/Unit/Pad: Happy Valley B Separator psi: LPS 280 HPS NIS Well Data Pilots SSV SSSV Tes"etest/SI Date Well Type Well Number Permit Number Separ PSI Set PSI UP Trip Test Code Test Code Test Date Passed Retest ori, WAG, GINJ, Code Or Date Shut In GAS, CYCLE, SI 13-13 2071510 280 200 200 P P 4/22/2009 GAS B-12 2071230 1 1 1 10/ 13/20071 SI Wells 1 Components: 2 Failures: 0 Failure Rate: o.00% ❑ 90 Day Remarks: B-12 hasn't been perforated yet. RJF 12/21/04 Page 1 of 1 SVS HV B 4-22-09.xls Alaska Oil and Gas Conservation Commission Safety Valve System Test Well Pressures Report Operator: Chevron Operator Rep: Steve Tanner AOGCC Rep: Lou Grimaldi Submitted By: Jamie Katz Field/Unit/Pad: Happy Valley B Date: 4/22/2009 Well Data Well Pressures Gas Lift Waiver Comments Well Number Permit Number Inner PSI Outer PSI Tubing PSI Yes/No Yes/No B-13 2071510 0 0 264 No No B-12 2071230 0 0 0 No No Not Perforated Remarks: RJF 09/19/02 Page 1 of 1 SVS HV B 4-22-09.xls Alaska Oil and Gas Conservation Commission Safety Valve System Test Report Operator: Chevron Operator Rep: Steve Tanner AOGCC Rep: Lou Grimaldi Submitted By: Jamie Katz Date: 22 -Apr -09 Field/Unit/Pad: Happy Valley A Separator psi: LPS 280 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 280 250 250 P 43 4/22/2009 GAS A-10 2041860 280 300 300 P P 4/22/2009 GAS A-11 2042070 280 200 200 P P 4/22/2009 GAS A-2 2031130 280 200 200 P P 4/22/2009 GAS A-3 2032220 3/1/2004 SI A-4 2032230 3/1/2004 SI A-6 2040440 6/1/2004 SI A-7 2041060 8/1/2004 SI A-8 2041140 280 2001 2001 P P 4/22/2009 GAS A-9 2041700 280 2001 2001 P P 4/22/2009 GAS Wells: Remarks: 6 Components: 12 Failures: 1 Failure Rate: 8.33% [:190 Day All wells vented to test seperator for DP across SSV. A-1 SSV leaked initially. Greased, flowed and retested "OK" RJF 12/21/04 Page 1 of 1 SVS HV A 4-22-09 Revised.xls Alaska Oil and Gas Conservation Commission Safety Valve System Test Well Pressures Report Operator: Chevron Operator Rep: Steve Tanner AOGCC Rep: Lou Grimaldi Submitted By: Jamie Katz Field/Unit/Pad: Happy Valley A Date: 4/22/2009 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 0 325 No No A-10 2041860 0 0 410 No No A-11 2042070 0 0 275 No No A-2 2031130 0 0 300 No No A-3 2032220 A-4 2032230 A-6 2040440 A-7 2041060 A-8 20411401 01 0 275 No No A-9 1 2041700 0 0 270 No No Remarks: RJF 09/19/02 Page 1 of 1 SVS HV A 4-22-09 Revised.xls Alaska Oil and Gas Conservation Commission Safety Valve System Test Report Operator: Chevron Operator Rep: Steve Tanner AOGCC Rep: Lou Grimaldi Submitted By: Field/Unit/Pad: Separator psi: Jamie Katz Date: 22 -Apr -09 Happy Valley A LPS 280 HPS NIS Well Data Pilots SSV SSSV Tes"etest/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 280 250 250 P P 4/22/2009 GAS A-10 2041860 280 300 300 P P 4/22/2009 GAS A-11 2042070 280 200 200 P P 4/22/2009 GAS A-2 2031130 280 200 200 P P 4/22/2009 GAS A-3 2032220 3/1/2004 SI A-4 2032230 3/1/2004 SI A-6 2040440 6/1/2004 SI A-7 2041060 8/1/2004 SI A-8 2041140 280 200 200 P P 4/22/2009 GAS A-9 2041700 280 200 200 P P 4/22/2009 GAS Wells: 6 Components: 12 Failures: 1 Failure Rate: 8.33% ❑ 90 Day Remarks: All wells vented to test seperator for DP across SSV. A-1 SSV leaked initially. Greased, flowed and retested "OK" RJF 12/21/04 Page 1 of 1 SVS HV A 4-22-09.xls Alaska Oil and Gas Conservation Commission Safety Valve System Test Well Pressures Report Operator: Chevron Submitted By: Jamie Katz Operator Rep: Steve Tanner Field/Unit/Pad: Happy Valley A AOGCC Rep: Lou Grimaldi Date: 4/22/2009 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 0 325 No No A-10 2041860 0 0 410 No No A-11 2042070 0 0 275 No No A-2 2031130 0 0 300 No No A-3 2032220 A-4 2032230 A-6 2040440 A-7 2041060 A-8 20411401 0 0 275 No No A-9 20417001 0 0 270 No No Remarks: RJF 09/19/02 Page 1 of 1 SVS HV A 4-22-09.xls Alaska Oil and Gas Conservation Commission Safety Valve System Test Report Operator: Chevron Operator Rep: Rick Musgrove AOGCC Rep: Jeff Jones Submitted By: Jamie Katz Date: Field/Unit/Pad: Happy Valley B Separator psi: Test 293 HPS NIS 22 -Jul -09 Well Data Pilots SSV SSSV Test/Retest/SI Date Well Type Well Number Permit Number Separ PSI Set PSI UP Trip Test Test Code Code Test Date Passed Retest Oil, WAG, GINJ, Code Or Date Shut In GAS, CYCLE, Sf B-13 2071510 B-12 2071230 293 200 189 P P NT 7/22/2009 GAS Wells: Remarks: 1 Components: 2 Failures: 0 Failure Rate: 0.00% ❑ 90 Day Tubing pressure, 460 PSI. Blew flowline pressure down to 0 PSI. Passed RJF 12/21/04 Page 1 of 2 SVS HV B 7-22-09.xls Alaska Oil and Gas Conservation Commission Safety Valve System Test Well Pressures Report Operator: Chevron Operator Rep: Rick Musgrov( AOGCC Rep: Jeff Jones Submitted By: Jamie Katz Field/Unit/Pad: Happy Valley B Date: 7/22/2009 Well Data Well Pressures Gas Lift Waiver Comments Well Number Permit Number Inner PSI Outer PSI Tubing PSI Yes/No Yes/No B-13 2071510 0 0 0 No No Shut in B-12 2071230 0 0 460 No No Tested 7-22-09 Remarks: RJF 09/19/02 Page 2 of 2 SVS HV B 7-22-09.xls Alaska Oil and Gas Conservation Commission Safety Valve System Test Report Operator: Chevron Submitted By: Sandy McMill Date: 11/19/2009 Operator Rep: Steve Tanner Field/Unit/Pad: Deep Creek/Happy Valley/Pad A AOGCC Rep: Jeff Jones Separator psi: LPS 280 UPS NIS Well Data Pilots SSV SSSY 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-01 2030720 280 250 250 P P 11/19/2009 GAS A-02 2031130 280 200 200 P P 11/19/2009 GAS A-03 2032220 3/1/2004 SI A-04 2032230 3/1/2004 SI A-06 2040440 6/1/2004 SI A-07 2041060 8/1/2004 SI A-08 2041140 280 200 200 P P 11/19/2009 GAS A-09 2041700 280 200 200 P P 11/19/2009 GAS A-10 2041860 280 300 235 P P 11/19/2009 GAS A-11 2042070 280 200 195 P I P 11/19/2009 GAS Wells: Remarks: 6 Components: 12 Failure 0 Failure Rate: 0.00% ❑ 90 Day All wells vented to test seperator for DP across SSV. Greased block valves for well A-8 and SSV, valve was leaking on header. PLB 12/18/09 Page 1 of 1 SVS Happy Valley Pad A 11-19-09.xls Alaska Oil and Gas Conservation Commission Safety Valve System Test Well Pressures Report Operator: Chevron Operator Rep: Steve Tanner AOGCC Rep: Jeff Jones Submitted By: Sandy McMillan Field/Unit/Pad: Deep Creek/Happy Valley/Pad A Date: 11/19/2009 Well Data Well Pressures Gas Lift Waiver Comments Well Number Permit Number Inner PSI Outer PSI Tubing Yes/No PSI Yes/No Remarks: RJF 09/19/02 Page 1 of 1 SVS Happy Valley Pad A 11-19-09.xls Alaska Oil and Gas Conservation Commission Safety Valve System Test Report Operator: Chevron Submitted By: Sandy McMill Date: 11/19/2009 Operator Rep: Steve Tanner Field/Unit/Pad: Deep Creek/Happy Valley/Pad B AOGCC Rep: Jeff Jones Separator psi: LPS 280 HPS NIS Well Data Pilots SSV SSSV Retest/SI Date Well Type Well Number Permit Number Separl PSI Set I PSI UP Trip Test Code Test Code Test Code Date Passed Retest Or Date Shut In Oil, WAG, GINJ, GAS, CYCLE, sI B-12 2071230 280 200 190 P P 11/19/2009 GAS B-13 2071510 280 200 198 P I P I 11/19/2009 GAS Wells: Remarks: 2 Components: 4 Failure 0 Failure Rate: 0.00% [:190 Day PLB 12/18/09 Page 1 of 1 SVS Happy Valley Pad B 11-19-09.xls Alaska Oil and Gas Conservation Commission Safety Valve System Test Well Pressures Report Operator: Chevron Submitted By: Sandy McMillan Operator Rep: Steve Tanner Field/Unit/Pad: Deep Creek/Happy Valley/Pad B AOGCC Rep: Jeff Jones Date: 11/19/2009 Well Data Well Pressures Gas Lift Waiver Comments Well Number Permit Number Inner PSI Outer PSI Tubing Yes/No Yes/No PSI Remarks: RJF 09/19/02 Page 1 of 1 SVS Happy Valley Pad B 11-19-09.xls