The URL can be used to link to this page

Home My WebLink About2010 Deep Creek UnitChevron Erin O'Brien-Authier Union Oil Company of California Petroleum Engineer 3800 Centerpoint Dr., Suite 100 MCA Asset Development Anchorage, AK 99503 Ift— 0.0 Tel 907 263 7653 Fax 907 263 7698 Email eodm@chevron.com RECEIID LIAR 0 3 2"' March 1, 2011 A�11ka oil & Gas conB.000masnm "�i3�h0i8ge 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 2010 ANNUAL RESERVOIR REVIEW Dear Commissioner Seamount: 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 6th Annual Reservoir Review and corresponds to events during the 2010 calendar year. Note that the Happy Valley Field has been on production since November 2004. Production Update At the end 2009, the Beluga formation was perforated in HV -11. Rate was estimated to be less than 50 mcfd from the Tyonek prior to adding perforations. On December 22, 2009, perforations were shot in Beluga B-100, B-90 and B-80. Very little pressure response was noted after any of the added perforations. No flow was measured after the perforations and an apparent fluid level rise. The well remained shut in during 2010. As of December 31St, 2010, the cumulative production from the Happy Valley field was 16,337,859 Mcf of gas and 44,249 Bbl of water. Seven (7) Happy Valley wells Union Oil Company of California / A Chevron Company http://www.chevron.com 2010 Annual Reservoir Review Happy Valley Field March 1, 2011 produced during 2010. The wells are currently producing at the following rates: a. HV -A01 - Lower Tyonek Producer. Current rate —1.0 MMcf/d & 2 bwpd, at 262 psig FTP. b. HV -A02 - Lower Tyonek Producer. Current rate —0.3 MMcf/d & 3 bwpd, at 256 psig FTP. c. HV -A08 - Beluga and Upper Tyonek Producer. Current rate —0.4 MMcf/d & 2 bwpd, at 264 psig FTP. d. HV -A09 - Upper Tyonek Producer. Current rate —1.2 MMcf/d & 2 bwpd, at 266 psig FTP. e. HV -A10 - Upper Tyonek Producer. Current rate —1.8 MMcf/d & 0 bwpd, at 282 psig FTP. f. HV -A11 - Beluga and Upper Tyonek Producer. HV -A11 is currently shut-in. g. HV -11312 - Lower Tyonek Producer. Current rate —0.5 MMcf/d & 2 bwpd, at 281 psig FTP. h. HV -B13 - Upper Tyonek Producer. Current rate —0.4 MMcf/d & 1 bwpd, at 277 psig FTP. Appendix A contains the production plots for each Happy Valley well. Reservoir Pressure There are currently two 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. No downhole Happy Valley reservoir pressure information was gathered during 2010. Cumulative Production As previously mentioned the cumulative production from the Happy Valley field was 16,337,859 Mcf of gas and 44,249 Bbl of water, through December 31St, 2010. The cumulative produced gas volumes, sub -divided by well and formation (through 12/31/2010) are as follows: Beluga Upper Tyonek Lower Tyonek HV -A01 3,708,274 HV -A02 819,328 HV -A08 695,654 1,043,481 Union Oil Company of California / A Chevron Company http://www.chevron.com 2010 Annual Reservoir Review Happy Valley Field March 1, 2011 HV -A09 2,868,094 HV -A10 6,354,711 HV -A11 135,554 0 HV -612 442,650 HV -1313 270,113 Cum Gas Volume MCF 695,654 10,671,953 4,970,252 Reservoir Summary Beluga - The Beluga formation is currently open in only the HV -A8, HVA11 and HV - B13 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. After adding Beluga perforations in HV -A11, the well has remained shut in, not capable of flow. Through December, 2010, the cumulative production from the Beluga is 0.696 BCF gas and 33,920 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 -1313 wellbores. The cumulative production from the Upper Tyonek is 10.672 BCF gas and 1,476 BW. Additional Upper Tyonek potential pay exists in the HV -A1, HV -A10, and HV -1312 wells. Additional offset locations may exist for future development from the Pad B. 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 4.970 BCF gas and 8,853 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 -1312. Pending Projects There are currently no plans to drill any new wells at Happy Valley during the 2011 calendar year. Capillary tubing strings (chemical injection lines) are planned for HV -A8 (already installed 2/1/11), HV -1312, HV -A2 and possibly HV -1313, to help unload the water that is being produced with the gas. Currently, soap sticks are being dropped in the wells everyday, which help the gas lift the produced fluids (water & diesel from the fracs). In the case of HV -1312 and HV -1313, the capillary tubing strings should help the wells recover more of the fluids lost to the various Union Oil Company of California / A Chevron Company http://www.chevron.com 2010 Annual Reservoir Review Happy Valley Field March 1, 2011 Tyonek intervals during the fracture stimulation operations. An add-perf/re-pert is also planned for HV-Al2 prior to running the capillary string as an attempt to get past suspected damage in the Tyonek T-140. 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 12th and October 13th 2010. These tests were witnessed by Bob Noble and Lou Grimaldi, respectively for the AOGCC. Currently, the HV SSV's are operating with approved tests on all SSV's. The SSV test results for 2010 are attached in Appendix B. If you have any questions regarding this annual reservoir review, please contact me at your earliest convenience (263-7653). Sincerely, Erin O'Brien-Authier Attachments Cc: Dave Whitacre, CVX Mark Longden, CVX Justin Black, CVX Field Well Files, CVX Union Oil Company of California / A Chevron Company http://www.chevron.com 2010 Annual Reservoir Review Happy Valley Field March 1, 2011 APPENDIX A Happy Valley Field Well Production Plots Union Oil Company of California / A Chevron Company http://www.chevron.com Dec -04 Dec -05 Dec -06 Dec -07 Dec -08 pec -09 Dec -10 Dec -11 3 CD S � � o 0 N � o CD �l< CD (D ¢• C CDO mss• C C wi 3500 3000 2500 0 U2000 d Ce B 1500 1000 i 400 500 -� -- .. i 2nn 0 0---,--� r Dec -03 Dec -04 Dec -0.5 Dec -06 Dec -07 Dec -08 Dec -09 Dec -10 Dec -11 1400 Happy Y Valle #8 Daily Allocated . Production 1200 Rate{msd/d} .. Tubing Press ;.►• 1000 . M• . �. . • •. 800 - '. r • CL 0. Ann i 400 500 -� -- .. i 2nn 0 0---,--� r Dec -03 Dec -04 Dec -0.5 Dec -06 Dec -07 Dec -08 Dec -09 Dec -10 Dec -11 S 2000 Happy Valley #9 Daily Allocated Production 1600 1800 1400 1600 Rate "mscf/d) Tubing Press 1200 1400 LL 1200 1000 u � ,on 1000 800 � a LL 800 600 600 400 400 200 200 0 0 Dec -04 Dec -05 Dec -06 Dec -07 Dec -08 Dec -09 Dec -10 Dec -11 CD ... � � -� ..- • � r • • ri� M FA 3 6000 - 5000 - 4000 ri Happy Valley #10 Daily Allocated Production Rate(IIISC d) • Tubing Press � � o 6000 o _O C ITI 5000CD � o c 4000 3 700 Happy Valley #11 Daily Allocated Production 2.500 600 — — -- Rate • (mscf/d) 2000 500 • Tubing Press 1500 X00 a 300 LL 200 500 100 0 - 0 Dec -03 Dec -04 Dec -05 Dec -06 Dec -07 Dec -08 Dec -09 Dec -10 Dec. -11 1600 1400 1200 1000 a LL u 800 A N N 600 400 200 0 Dec -08 Happy Valley #12 Daily Allocated Production Rate(msdild) 2000 1800 1600 1400 - 1200 00 1000 a F - LL 800 600 400 Dec -09 Dec -10 200 0 Dec -11 � N � O CD � CD CD 1000 u � Rate �mscf;�d} Happy Valley #13 Daily Allocated Production 1600 900 i ■ 1400 800 Tubing Press 1200 700 600 1000 0 U to 500 800 a OA OAfu LLL 600 300 400 200 200 100 0 0 Dec -07 Dec -08 Dec -09 Dec -10 Dec -11 � N � O CD � CD CD u � Rate �mscf;�d} i ■ 2010 Annual Reservoir Review Happy Valley Field March 1, 2011 APPENDIX B Happy Valley Field 2010 Safety Valve System Test Reports Union Oil Company of California / A Chevron Company http://www.chevron.com 2010 Annual Reservoir Review Happy Valley Field March 1, 2011 Alaska Oil and Gas Conservation Commission Safety Valve System Test Report Operator: Chevron Submitted By: Jamie Katz Date: 12 -Apr -10 Operator Rep: Rick Musgrove Field/Unit/Pad: Happy Valley A AOGCC Rep: Bob Noble Separator psi: LPS 295 HPS NIS Well Data Well Pressures Pilots SSV SSSV Test/Retest/SI Date Well Type Well Number Permit Number Separ PSI Set PSI L/P Test Trip Code Test Code Test Date Passed Retest oil, WAG, GINJ, Code Or Date Shut In GAS, CYCLE, sI A-1 2030720 295 250 249 P GAS A-10 2041860 295 250 249 P GAS A-11 2042070 A-11 2042070 SI A-2 2031130 295 2001 199 P GAS A-3 2032220 No No A-3 SI A-4 2032230 SI SI A-6 2040440 SI A-7 2041060 ISI A-8 1 20411401 295 200 1981 P I GAS A-9 1 20417001 295 2001 1991 P I GAS No INo A-91 20417001 0 0 Wells: 5 Components: 10 Failures: 0 Failure Rate: o.00% LJ 90 Day Remarks: All wells Passed. Used Calibrated test Gauge. Alaska Oil and Gas Conservation Commission Safety Valve System Test Well Pressures Report Operator: Chevron Submitted By: Jamie Katz Operator Rep: Rick Musgrove Field/Unit/Pad: Happy Valley A AOGCC Rep: Bob Noble Date: 4/12/2010 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 0 270 No No A-10 2041860 0 0 320 No No A-11 2042070 SI A-2 2031 130 0 0 290 No No A-3 2032220 SI A-4 2032230 SI A-6 2040440 SI A-7 2041060 SI A-8 2041140 0 0 198 No INo A-91 20417001 0 0 199 No INo Remarks: Union Oil Company of California / A Chevron Company http://www.chevron.com 2010 Annual Reservoir Review Happy Valley Field March 1, 2011 Alaska Oil and Gas Conservation Commission Safety Valve System Test Report Operator: Chevron Submitted By: Jamie Katz Date: 12 -Apr -10 Operator Rep: Rick Musgrove Fiekl/Unit/Pad: Happy Valley B AOGCC Rep: Bob Noble Separator psi: Test 309 HPS NIS Well Data Pilots SSV SSSV Tes&RetesdSI Date Well Type Well Permit Number Number Separ PSI Set PSI UP Trip Test Code Test Code Test Code Date Passed Retest Or Date Shut In oii, WAG, GMJ, GAS, CYCLE, sl B-13 2071510 309 200 198 P P NT GAS B-12 207123OF 309 200 198 P P I NT GAS Wells: 1 Components: 2 Failures: Remarks: 0 Failure Rate: 0.00% u 90 Day Alaska Oil and Gas Conservation Commission Safety Valve System Test Well Pressures Report Operator: Chevron Submitted By: Jamie Katz Operator Rep: Rick Musgrove Field/Unit/Pad: Happy Valley B AOGCC Rep: Bob Noble Date: 4/12/2010 Well Data Well Pressures Gas Lift Waiver Comments Well Permit Number Number Inner Outer Tubing Yes/No PSI PSI PSI Yes/No B-13 2071510 0 0 0 No No B-12 2071230 0 0 460 No No Remarks: Union Oil Company of California / A Chevron Company http://www.chevron.com 2010 Annual Reservoir Review Happy Valley Field March 1, 2011 Alaska Oil and Gas Conservation Commission Safety Valve System Test Report Operator: Chevron Submitted By: Sandy McMillan Date: 13 -Oct- 10 Operator Rep: Matt Smith Field/Unit/Pad: Happy Valley A AOGCC Rep: Lou Grimaldi Separator psi: LPS 270 HPS NIS Well Data Well Pressures Gas Lit Pilots Comments SSV SSS V Test/RetestISI Date Well Type Well Number Permit Number Separ PSI Set PSI LIP Trip Test Code Test Code Test Date Passed Retest oi,, wAG, GINJ, Code Or Date Shut In GAS, CYCLE, S1 A-1 2030720 270 200 200 P P 10/13/2010 GAS A-10 2041860 270 200 200 P P 10/13/2010 GAS A-11 2042070 A-2 2031130 0 0 263 No 1/22/2010 Sl A-2 2031130 270 200 195 P P 10/13/2010 GAS A-3 2032220 SI 3/1/2004 SI A-4 2032230 SI A-7 3/1/2004 SI A-6 2040440 SI A-8 2041140 6/1/2004 SI A-7 2041060 No A-9 2041700 0 8/1/2004 SI A-8 20411401 270 200 200 P P 10/13/2010 GAS A-91 20417001 270 200 2001 P I P I 10/13/2010 GAS Wells: 5 Components: 10 Failures: Remarks: Failure Rate: 0.00 /o LJ 90 Day Alaska Oil and Gas Conservation Commission Safety Valve System Test Well Pressures Report Operator: Chevron Submitted By: Sandy McMillan Operator Rep: Matt Smith Field/Unit/Pad: Happy Valley A AOGCC Rep: Date: 10/13/2010 Well Data Well Pressures Gas Lit Waiver Comments Well Number Permit Number Inner PSI Outer PSI Tubing Yes/No PSI Yes/No A-1 2030720 0 0 268 No No A-10 2041860 0 0 304 No No A-11 2042070 SI A-2 2031130 0 0 263 No No A-3 2032220 SI A-4 2032230 SI A-6 2040440 SI A-7 2041060 SI A-8 2041140 0 0 269 No No A-9 2041700 0 0 270 No No Remarks: Union Oil Company of California / A Chevron Company http://www.chevron.com 2010 Annual Reservoir Review Happy Valley Field March 1, 2011 Alaska Oil and Gas Conservation Commission Safety Valve System Test Report Operator: Chevron Submitted By: Sandy McMillan Date: 13 -Oct -10 Operator Rep: Matt Smith Fiekl/Unit/Pad: Happy Valley B AOGCC Rep: Lou Grimaldi Separator psi: LPS 288 HPS NIS Well Data Pilots Waiver Comments SSV SSSV Test/RetestlSl 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 0i1, WAG, Gnva, GAS, CYCLE, SI B-13 2071510 288 200 200 P P 10/13/2010 GAS B-12 —FO712301 288 200 200 P P 10/13/2010 GAS Wells: 2 Components: 4 Failures: Remarks: Failure Rate: 0.00% LJ 90 Day Alaska Oil and Gas Conservation Commission Safety Valve System Test Well Pressures Report Operator: Chevron Submitted By: Sandy McMillan Operator Rep: Matt Smith Field/UnWPad: Happy Valley B AOGCC Rep: Date: 10/13/2010 Well Data Well Pressures Gas Lit Waiver Comments Well Permit Number Number Inner Outer Tubing Yes/No PSI PSI PSI Yes/No B-13 2071510 0 0 278 No No B-12 2071230 120 0 280 No No Remarks: Union Oil Company of California / A Chevron Company http://www.chevron.com 2010 Annual Reservoir Review Happy Valley Field March 1, 2011 APPENDIX C Happy Valley Field Reservoir P/Z versus Cumulative Gas Plots ** Appendix C not included in this 2010 annual report ** Union Oil Company of California / A Chevron Company http://www.chevron.com