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Home My WebLink About2010 BadamiKE Emeka Emembolu Head of Basa Management, Alaska Strategic Performance Unit March 17, 2011 Dan Seamount Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7th Ave #100 Anchorage, Alaska, 99501-3539 BP Exploration (Alaska) Inc. 900 Fast Benson Boulevard PO. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 RE: Badami Field, Badami Oil Pool Annual Reservoir Performance Report Dear Mr. Seamount: BP Exploration (Alaska) Inc., as operator of the Badami Unit, hereby submits the attached Annual Reservoir Performance Report in accordance with the requirements of Rule 9 of the Badami Oil Pool Area Injection Order, dated August 26, 1998, and 20 AAC.25.115. This report covers the period January 1 through December 31, 2010. BP reserves the right to alter the content of the analyses contained in this report at any time based upon the most recent surveillance information obtained. Please contact John Garing (564-5167) or Mark Sauve (564-4660) if there are any other questions. Sincerely, Emeka Emembolu Phone:(907) 564-5536 Fax: (907) 564-4440 Email Emeka.Ememboltr@bp.com Web: www.bp.com cc: Kevin Banks, DNR R. L. Skillern, BP Erik Opstad, Savant Alaska Badami File 101 ANNUAL RESERVOIR SURVEILLANCE BADAMI OIL POOL JANUARY 2010 - DECEMBER 2010 Table of Contents A. Progress of the Enhanced Recovery Project and Reservoir Management Summary B. Voidage Balance by Month of Produced Fluids and Injected Fluids C. Analysis of Reservoir Pressure Surveys Within the Pool D. Results and Analysis of Production and Injection Logs E. Special Monitoring F. Evaluation of Well Testing and Allocation G. Future Development Plans H. Review of Annual Plan of Operations and Development L Status of Wells Shut -In for 365 Days or More Appendices Table I Table 2 Table 3 Table 4 Table 5 Figure 1 Figure 2 3 3 3 3 3 4 4 4 5 Badami Well Disposition Badami Production/Injection - Surface Units Badami Production/Injection - Reservoir Units Badami Pressure Monitoring Summaries Badami Well Testing Frequency Summaries 2 Field Production History Field Gas Disposition History ANNUAL RESERVOIR SURVEILLANCE REPORT BADAMI OIL POOL January 2010 — December 2010 A. Progress of the Enhanced Recovery Project and Reservoir Management Summary Production at Badami was re -started November 5, 2010 after a field wide shut-in since August 2007. Production was restarted from 4 wells with gas injection into one well. Prior to production start-up static pressure surveys were obtained from wells B1 -11A, B1- 18 and 131-38. In addition, in-situ reservoir pressures were obtained from well B1 -18A using geo-tap tools prior to completion. Table 4 contains a summary of the static reservoir pressures acquired in 2010. The total volume of oil produced from the Badami reservoir during the report period was 81,834 stbo. A total of 374,405 mscf of gas was produced of which 330,248 mscf was injected back into the producing formation. One new well and one new sidetrack were drilled and completed during the reporting period. Well disposition is detailed in Table 1. The oil production and gas disposition history of the field is shown in Figures 1 and 2. B. Voidage Balance Production and injection volumes and reservoir voidage by month are detailed in Tables 2 and 3. Cumulative voidage for 2010 was negative 104,170 reservoir barrels. C. Reservoir Pressure Monitoring Four static pressures were taken at Badami during the report period and are listed in Table 4. These statics show that the pressures in the individual lobes of the reservoir that had previously been produced from increased since warm shutdown during 2007-2010. The pressures obtained from new wells indicate there are still areas of the reservoir near original pressure. The one well (131-18) that had a static pressure survey in both 2009 and 2010 showed a rise in reservoir pressure equating to +0.69 psi per day. D. Production Logging No production logging was performed during the reporting period on wells completed in the Badami reservoir. E. Special Monitoring Other than static bottom hole pressures outlined in Table 4 and daily monitoring of wellhead pressures, no other special monitoring was done during the reporting period. 3 F. Evaluation of Well Testing and Allocation Table 5 is a summary of well testing frequency for each of the Badami wells. Daily oil production allocation to each well is accomplished by a method of pro -rating the oil rates utilizing the most recent well test such that the total oil produced from all wells equals the fiscal pipeline meter. G. Future Development Plans In 2008, BP and Savant Alaska (partnered with ASRC) concluded a farm -out agreement covering BP's interest in the Badami Unit. As part of this agreement, Savant Alaska drilled one well to the Red Wolf prospect (131-38) within the Badami Unit during February 2010. Savant Alaska also sidetracked one existing producer (131-18) to a Brookian sand within the Badami Unit during March 2010. Additional drilling options, in 2012 and beyond, will be reviewed following the longer-term production results of these two wells. Monitoring of well integrity and surveillance activity on the Class 1 disposal well, B1-01, will continue as required. Reservoir pressure data will be acquired during 2011 to monitor Badami reservoir depletion. H. Review of Annual Plan of Operations and Development The field was granted a 8°i POD by the Department of Natural Resources on October 21 of 2010, which expires November 15, 2011. Is I. Status of Wells Shut-in for 365 Days or More (20 AAC 25.115) The following wells were shut-in all of 2010. Badami Shut-in Wells 2010 I. Reasons for Well Shut -Id A. High GOA, curently uncompetitive to produce due to facility constraints, no known mechanical problems B. High water, currently uneconomic to produce, no known mechanical problems C. Low production rate, no known mechanical problems D. Mechanical Problem E. Other (Specify under comments) 2. Cunent Mechanical Condition Briefly describe the current mechanical condition including the condition of installed tubing and casing strings. 3. Future Utility 1. Evaluating remedial, sidetrack and/or redrill opportunities 2. Remedial well work planned 3. Long term Shut-in well/ No immediate plans 4. Suspended well 5. P&A planned 6. Other (Specify under comments) Date Shut- Reason for Well Current Mechanical Condition of Future Utility Plans & SW Name In Shut -In' Well' Possibilities' Comments 81-11A Aug -07 E. Methane Shut-in awaiting Coiled Tubing Cleanout 2. Produce post CTU Hydrates Tubing clean-out B1-16 May -07 C. Low Production Secured with BPV. 3. Longterm shut-in well Rate / No immediate plans Collapsed tubing and casing at 4504' D. Mechanical MD. Hallibutlon 9.5/8" Fasdrill O 2450' 3. Longterm shut-in well Bt -25 Jul -03 Problem W/ 50' Arctic Set Cement antl 9-5/8" Halliburton EZSV ® 2347' MD w/ 50' of / No immediate plans Artic Set Cement above plug. Bt -28 Jul -03 D, Mechanical TXIA communication. Secured with 3. Longterm shut-in well Problem tubing tailplugand BPV / No immediate plans I. Reasons for Well Shut -Id A. High GOA, curently uncompetitive to produce due to facility constraints, no known mechanical problems B. High water, currently uneconomic to produce, no known mechanical problems C. Low production rate, no known mechanical problems D. Mechanical Problem E. Other (Specify under comments) 2. Cunent Mechanical Condition Briefly describe the current mechanical condition including the condition of installed tubing and casing strings. 3. Future Utility 1. Evaluating remedial, sidetrack and/or redrill opportunities 2. Remedial well work planned 3. Long term Shut-in well/ No immediate plans 4. Suspended well 5. P&A planned 6. Other (Specify under comments) Appendices Table 1 Badami Well Disposition Well Completion Disposition Comment Date BI -01 8/19/98 Class 1 Disposal Well Completed MIT in Sept -20 10 BI -11A 3/4/98 Pre -produced injector Producer 8/24/98 to present. cased and prop fracced. B1-14 5/1/98 Gas injector, cased. Injector 8/24/98 to 9/29/98. Producer 9/30/98 to 11/29/98. Injector 9/30/98 to present. BI -15 7/31/98 Producer, trilateral. Trilateral dedicated producer from 8/24/98 to present. BI -16 6/13/98 Pre -produced injector, Injector 8/24/98 to 9/25/98. cased, prop fracced. Producer 9/26/98 to 10/21/98. Will not sustain flow, well contains fill, tbg restricted with paraffin, and unable to pump into well. Secured with BPV. B1 -18A 3/12/10 Sidetracked unilateral Dedicated producer 11/5/10 to producer, cased and present. perforated. B 1-21 1/6/98 Pre -produced gas Producer 8/24/98 to 11/30/98. injector, fracced, no Injector 12/01/98 to Aug 2003. proppant. Converted Producer Oct 2005 to present. back to producer. B1-25 11/20/98 Producer, unilateral Dedicated producer. open hole. Tubing collapse confirmed 9/7/04. Well suspended 4/8/05. Two CIBP set in surface casing. B1-28 10/20/98 Producer, trilateral Dedicated producer. open hole. Secured for TUA communication 4/18/05. Secured with TTP & BPV. B 1-36 5/23/99 Producer, unilateral Dedicated producer 5/30/99 to cased and perforated. present. B1-38 2/9/10 Producer, unilateral Dedicated producer 11/05/10 to cased and perforated. present. As of December 31, 2010 Table 2 Badami Production/Injection - Surface Units BADAMI PRODUCTION / INJECTION - SURFACE UNITS 2010 PRODUCTION Jan Feb Mar April May June July Aug Sept Oct Nov Dec 2010 Total Oil (stb) 0 0 0 0 0 0 0 0 0 0 35,885 45,949 81,834 Associated Gas (mscf) 0 0 0 0 0 0 0 0 0 0 21,029 26,926 47,955 Free Gas (mscf) 0 0 0 0 0 0 0 0 0 0 130,832 195,618 326,450 Water (stb) 0 0 0 0 0 0 0 0 0 0 0 0 0 2010 INJECTION Water (stb) 0 0 0 0 0 0 0 0 0 0 0 0 0 Gas (mscf) 0 0 0 0 0 0 0 0 0 0 144,016 186,232 330,248 Notes: (1) Per a discussion between Jack Hartz and Anna Dube on 3/22/00, a solution GOR of 586 was determined using production data from 8/98 to 2/99 and is used in calculating volumes of associated gas. This was done to address the fact there are different types of oil in the reservoir with different GOR. (2) Volumes of produced water are reported here although they are not reported in other production allocations and injection reporting due to not being of significant volume. Volumes here are based on tank levels when the water was pumped into the disposal well and are not the actual water production for any given month. I Table 3 Badami Production/Injection - Reservoir Units BADAMI PRODUCTION / INJECTION - RESERVOIR UNITS 2010 PRODUCTION Jan Feb Mar April May June July Aug Sept Oct Nov Dec 2010 Total Oil (rb) 0 0 0 0 0 0 0 0 0 0 46,651 59,734 106,384 Free Gas (rb) 0 0 0 0 0 0 0 0 0 0 76,275 114,045 190,321 Water (rb) 0 0 0 0 0 0 0 0 0 0 0 0 0 All Fluids (rb) 0 0 0 0 0 0 0 0 0 0 122,926 173,779 296,705 2010 INJECTION Water (rb) 0 0 0 0 0 0 0 0 0 0 0 0 0 Gas (rb) 0 0 0 0 0 0 0 0 0 0 83,961 108,573 192,535 All Fluids (rb) 0 0 0 0 0 0 0 0 0 0 83,961 108,573 192,535 Voidage (rb) Oil Formation Volume Factor, Bo 1.300 rb/stb Gas Formation Volume Factor, Bg 0.000583 rb/scf 0.003276 vol/vol Water Formation Volume Factor, Bw 1.0101 rb/stb -38,964 -65,206 -104,170 Notes: (1) Bo from Average of Badami #1 and Badami #5 (lower sand) PVT analysis. (2) Bg calculation based on gas composition of sample taken 9/18/98 (reservoir temperature 185 degrees F, reservoir pressure: 6400 psi) Table 4 2010 Badami Pressure Monitoring Well Test Date Operation Pressure At Datum (psia) Bl -18 1/18/10 Pressure Static 1,853 Bl -18A 3/3/10 RFT 6,747 B1 -11A 4/19/10 Pressure Static 4,164 B1-38 4/19/10 Pressure Static 6,388* Datum is 10,500' TVDSS * Datum is 11,000' TVDSS 10 Table 5 Badami Well Testing Frequency Summary Well Number of Well Tests in 2003 Number of Well Tests in 2004 Number of Well Tests in 2005 Number of Well Tests in 2006 Number of Well Tests in 2007 Number of Well Tests in 2008 Number of Well Tests in 2009 Number of Well Tests in 2010 BI -11A 11 0 20 84 33 0 0 0 B1-15 3 0 15 43 0 0 0 4 B1-16 1 0 0 0 1 1 1 0 0 0 B1-18 1 0 18 64 19 0 0 0 B1 -18A N/A N/A N/A N/A N/A N/A N/A 12 B1-21 0 0 22 35 18 0 0 1 B1-25 8 0 0 0 0 0 0 0 B1-28 9 0 0 0 0 0 0 0 B1-36 7 0 25 90 36 0 0 20 B1-38 N/A N/A N/A N/A N/A N/A N/A 22 11 Figure 1 Field Production History Badami Field Oil Production 18,000 18,000 14,000 12,000 O. O 10,000 0 8,000 .R 0 6,000 4,000 2,000 0 8/24198 8/24/99 8/23/00 8/23/01 8/23/02 8/23/03 8/22/04 8/22/05 8/22/06 8/22/07 8121/08 8/21/09 8/21/10 12 Figure 2 Field Gas Disposition Histories 35,000 30,000 25,000 E 20,000 N Q E O 15,000 ['3 a R 10,000 Am 0 8/24/98 8124/99 8123100 8123101 8123/02 8123103 8122104 8/22105 8122108 8/22/07 8121108 8/21/09 8121110 Badami Field Gas Disposition 13