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Home My WebLink About2013 Badami 2 TABLE OF CONTENTS A. Progress of Enhanced Recovery Project and Reservoir Maintenance Summary 3 B. Voidage Balance by Month of Produced Fluids and Injected Fluids 3 C. Analysis of Reservoir Pressure Surveys Within the Pool 3 D. Results of Analysis of Production and Injection Logs 3 E. Special Monitoring 3 F. Evaluation of Well Testing and Allocation 3 G. Future Development Plans 4 H. Review of Annual Plan of Operations and Development 4 I. Status of Wells Shut-‐In for 365 Days or More 5 Appendices Table 1 Badami Well Disposition Table 2 Badami Production/Injection – Surface Units Table 3 Badami Production/Injection Reservoir Units Table 4 Badami Pressure Monitoring Summaries Table 5 Badami Special Monitoring Summaries Table 6 Badami Well Testing Frequency Summaries Figure 1 Field Production History Figure 2 Field Gas Disposition History 3 ANNUAL RESERVOIR SURVEILLANCE REPORT BADAMI OIL POOL January 2013-‐December 2013 A. Progress of the Enhanced Recovery Project and Reservoir Management Summary Production was from 7 wells with gas injection into one well. Static pressure survey were obtained from wells B1-‐11A, B1-‐16, B1-‐18A and B1-‐38. Table 4 contains a summary of the static reservoir pressure readings acquired in 2013. The total volume of oil produced from the Badami reservoir during the report period was 453,980 stbo. A total of 392,333 mscf of gas was produced of which 3,051 mscf was injected back into the producing formation. No new wells 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 2013 was negative 662,029 reservoir barrels. C. Reservoir Pressure Monitoring Four static pressure surveys were taken at Badami during the report period and are listed in Table 4. These surveys show that the pressures in the individual lobes of the reservoir continue to deplete over time consistent with the depletion drive recovery method employed in the field. D. Production Logging No production logging was conducted during the report period. E. Special Monitoring A no flow test was conducted on well B1-‐16 during the report period. F. Evaluation of Well Testing and Allocation Table 6 is a summary of well testing frequency for each of the Badami wells. 4 Daily oil production allocation to each well is accomplished by pro-‐rating the oil rates from the most recent well test such that the total oil produced from all wells equals the amount measured by the custody transfer pipeline meter. G. Future Development Plans On November 16, 2012, Savant Alaska LLC (“SALLC”), as Unit Operator, submitted and application to expand the Badami Unit to provide for the orderly drilling of an exploration test well. Pending the outcome of the application, additional exploration drilling may have taken place in 2013. On March 15, 2013, the DNR approved in part and denied in part the Badami Expansion application. This decision was appealed be SALLC on April 3, 2013 and a subsequent Request for Stay of the activities proposed under the plan of exploration for the unit expansion was submitted to DNR on August 19, 2013. To date, DNR has not responded to the appeal or the request for stay, therefore, no additional exploration drilling has taken place with respect the proposed unit expansion. Monitoring of well integrity and surveillance activity on the Class I disposal well, B1-‐01, will continue pursuant to statutory requirement. Reservoir pressure data will be acquired during 2014 to monitor Badami reservoir depletion. H. Review of Plan of Development of Operations and Development The 10th Plan of Development for the Badami Unit (POD) was approved by the Department of Natural Resources on July 15, 2013. The POD expires on Nov. 15, 2014. In accordance with the POD, Savant Alaska relinquished 6,377 acres from the Badami Unit and performed a propellant fracture treatment in well B1-‐38. This stimulation method was selected as an alternative to a traditional hydraulic fracture treatment Modeling suggested that fractures could be induced up to 3 feet into near-‐wellbore formation. This was thought to be sufficient to reach past any drilling induced skin and to break down any plugged perforations. Three 2.50” StimTube™ bodies were sequentially run down hole to stimulate the perforated interval from 14,438’-‐14,508’ MD by firing a stimulation pulse over three separate 10 foot intervals. Although all 3 stimulation guns fired, no beneficial production response was observed from the well, therefore, SALLC did not elect to perform the same treatment in well B1-‐18A as originally contemplated in the 10th POD. The B1-‐28 well was restored to production after a leaking gas lift mandrel was repaired. SALLC must present the proposed 11th POD to the DNR for their review on or before August 17, 2014. 5 I. Status of Well Shut-‐in for 365 Days or More (20 AAC 25.115) The following wells were shut-‐in for all of 2013. Badami Shut-‐in Wells 2013 Sw Name Date Shut-‐in Reason for Well Shut-‐in (1) Current Mechanical Condition of Well (2) Future Utility Plans & Possibilities (3) Comments B1-‐25 July 2003 D. Mechanical Problem Collapsed tubing and casing at 4504’ MD. Halliburton 9-‐5/8” Fasdrill @2450’ MD w/ 50’ Arctic Set Cement and 9-‐5/8” Halliburton EZSV @ 2347’ MD w/ 50’ of Arctic Set Cement above plug. D. Long term shut-‐in well/No immediate plans (1) Reasons for Well Shut-‐in A. High GOR, currently uncompetitive to produce due to facility constraints, no known mechanical problems B. High water, currently uneconomic to produce, no know mechanical problems C. Low production rate, no known mechanical problems D. Mechanical Problem E. Other (Specify under comments) (2) Current Mechanical Condition Briefly describe the current mechanical condition including the condition of installed tubing and casing strings. (3) Future Utility A. Evaluating remedial, sidetrack and/or re-‐drill opportunities B. Remedial well work planned C. Long term Shut-‐in well/No immediate plans D. Suspended well E. P&A planned F. Other (Specify under comments) 6 Appendices 7 Table 1 Badami Well Disposition – As of December 31, 2013. Well Completion Date Disposition Comment B1-‐01 8/19/98 Class 1 Disposal Well EPA mandated annual MIT-‐IA & AOGCC mandated annual fill tag performed April 29, 2013. Both satisfied regulatory requirements. B1-‐11A 3/04/98 Producer, cased. Originally pre-‐ produced injector. Hydraulic fracture treatment 08/17/98. 188,000 lbs. of sand. Xylene & Diesel stimulation 1/25/2000, no proppant used. Producer 8/24/98 to present. Holes punched for POGLM 11/4/98. “No-‐Flow” test witnessed & verbally certified as successful by AOGCC on 09/4/12. Formal approval letter received from James Regg on 10/5/12. B1-‐14 5/01/98 Producer, cased with installed K-‐ Valve. Pull MCX valve and set K-‐Valve to convert well from a gas injection well to a producer under Sundry 313-‐115 on 08/19/13. B1-‐15 7/31/98 Producer, tri-‐lateral, 8/24/98 to present. Main borehole completed with slotted liner then additionally perforated 11/11/99. Two additional legs have plop & drop slotted liners with open-‐hole tie-‐backs to a junction window. B1-‐16 6/13/98 Producer, ESP. Originally a pre-‐ produced injector, cased. J-‐2 and A-‐5 sands stimulated 09/17/98, proppant employed. Injector 8/24/98 to 9/25/98. Producer 9/26/98 to 10/21/98. Well worked over & ESP Installed in March 2012. Dedicated producer from 5/11/12 to present. “No-‐Flow” certified 08/16/2013 B1-‐18A 3/12/10 Producer. Sidetracked unilateral horizontal well. Dedicated producer from November 2010 to present. P&A to sidetrack under Sundry 309-‐366. Sidetrack PTD No. 210-‐003. Horizontal section completed with a slotted liner & external swell packers. Tie-‐back with Baker Flexlock™ liner hanger, ZXP packer and external casing packer. B1-‐21 1/06/98 Injector, gas. Originally a pre-‐ produced gas injector, hydraulic stimulated, but no proppant employed. Now in service as a gas injection well. Producer 8/24/98 to 09/28/99. Injector 09/29/99 to August 2005. Producer October 2005 through July 2013. Running tool Fish recovered 3/8/12. Reconversion to injector service under Sundry 313-‐362 issued 7/27/13. B1-‐25 11/20/98 Suspended Well. Unilateral, cased, completed with slotted liner. Tubing collapse confirmed 9/07/04. Well suspended 4/08/05 by setting 2 CIBP in surface casing at 2347 & 2450 feet MD with 50’ Arctic Set™ cement caps atop each. B1-‐28 10/20/98 Producer, trilateral. Mother bore completed with a slotted liner. Two additional legs have plop and drop slotted liners with open hole tie-‐backs. Dedicated producer. Secured for TxIA communication 4/18/05. Repaired GLM and passed MIT 10/08/12. Tubing & Liner plugs removed, then placed back on production 6/21/2013. B1-‐36 5/23/99 Producer, unilateral, cased. Now perforated in and producing from Badami Sands. Originally POP 5/30/99 and sustained through 2 shut-‐in & re-‐start cycles. Variously produced from Kekiktuk, Killian & Badami sands. Worked over under Sundry 310-‐063 in March 2010. Put back on continuous production 11/ 7/ 2010. B1-‐38 2/09/10 Producer, Killian Formation; unilateral cased & perforated, frac’d 7 Sept 2011, no proppant. Post drilling 10-‐3/4” casing leak repaired in March 2010. Kekiktuk tested non-‐productive. Dedicated Killian producer 11/16/10 to present. 8 Table 2 Badami Production/Injection – Surface Units BADAMI PRODUCTION / INJECTION - SURFACE UNITS 2013 PRODUCTION Jan Feb Mar April May June July Aug Sept Oct Nov Dec 2013 Total Oil (stb)39,580 32,471 38,198 36,897 37,808 38,487 41,547 38,525 37,111 38,287 37,189 37,880 453,980 Associated Gas (mscf)23,194 19,028 22,384 21,622 22,155 22,553 24,347 22,576 21,747 22,436 21,793 22,198 266,032 Free Gas (mscf)-118 2,011 1,729 -5,483 -509 5,265 17,533 770 22,681 19,744 27,220 35,457 126,301 Water (stb)0 0 0 0 0 0 0 0 0 0 0 0 0 2013 INJECTION Water (stb)0 0 0 0 0 0 0 0 0 0 0 0 0 Gas (mscf)212 76 45 16 1,819 32 27 718 4 102 0 0 3,051 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. 9 Table 3 Badami Production/Injection – Reservoir Units BADAMI PRODUCTION / INJECTION - RESERVOIR UNITS 2013 PRODUCTION Jan Feb Mar April May June July Aug Sept Oct Nov Dec 2013 Total Oil (rb)51,454 42,212 49,657 47,966 49,150 50,033 54,011 50,083 48,244 49,773 48,346 49,244 590,174 Free Gas (rb)-69 1,172 1,008 -3,196 -297 3,069 10,222 449 13,223 11,511 15,869 20,672 73,633 Water (rb)0 0 0 0 0 0 0 0 0 0 0 0 0 All Fluids (rb)51,385 43,385 50,665 44,770 48,853 53,102 64,233 50,532 61,467 61,284 64,215 69,916 663,807 2013 INJECTION Water (rb)0 0 0 0 0 0 0 0 0 0 0 0 0 Gas (rb)124 44 26 9 1,060 19 16 419 2 59 0 0 1,779 All Fluids (rb)124 44 26 9 1,060 19 16 419 2 59 0 0 1,779 Voidage (rb)-51,262 -43,340 -50,639 -44,760 -47,793 -53,084 -64,217 -50,113 -61,465 -61,224 -64,215 -69,916 -662,029 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 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) 10 Table 4 2013 Badami Pressure Monitoring Well Test Date Operation Pressure at Datum (psia) Datum (TVDSS Feet) B1-‐11A 5/28/13 Static Pressure 2934 10,500 B1-‐16 8/11/13 Static Pressure 2751 10,500 B1-‐18A 5/23/13 Static Pressure 1796 10,500 B1-‐38 8/11/13 Static Pressure 2785 11,000 11 Table 5 Badami Special Monitoring Summaries No-‐Flow Verification Badami Unit Bl-‐16 PTD 1980800 On August 16, 2013 an Alaska Oil and Gas Conservation Commission (AOGCC) Petroleum Inspector Chuck Scheve witnessed a no-‐flow test of Badami Unit ESP well B1-‐16. Mr. Scheve confirmed that the well was shut in and proper test equipment was rigged up to Badami B1-‐16 in accordance with AOGCC Industry Guidance Bulletin 10-‐004. The no flow test consisted of a series of flow and shut in periods. During the flow monitoring periods, no liquid production was observed and gas production -‐ measured through the no-‐flow meter -‐ were at rates less than 900 standard cubic feet per hour. Based on these results, the AOGCC affirmed by letter on September 23, 2013 that a subsurface safety valve was not required to be installed in B1-‐16 with three caveats: 1. A fail-‐safe automatic surface safety valve (SSV) system capable of preventing uncontrolled flow must be maintained in proper working condition in this well as required by 20 AAC 25.265. 2. The subsurface safety valve must be installed if Badami B1-‐16 demonstrates an ability to flow unassisted to surface at some point in the future, and 3. Any fill cleanout or stimulation work in this well that could change the production characteristics of the well will necessitate a subsequent no flow test. Given the successful no-‐flow test, Inspector Scheve granted Savant verbal approval to place well B1-‐16 back on production before leaving location. 12 Table 6 Badami Well Testing Frequency Summary Number of well tests in each calendar year. Well 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 B1-11A 11 0 20 84 33 0 0 0 89 36 32 B1-15 3 0 15 43 0 0 0 4 35 13 25 B1-16 0 0 0 1 1 0 0 0 1 28 39 B1-18 1 0 18 64 19 0 0 0 0 0 0 B1-18A N/A N/A N/A N/A N/A N/A N/A 12 118 33 34 B1-21 0 0 22 35 18 0 0 1 4 22 11 B1-25 8 0 0 0 0 0 0 0 0 0 0 B1-28 9 0 0 0 0 0 0 0 0 3 33 B1-36 7 0 25 90 36 0 0 20 145 45 43 B1-38 N/A N/A N/A N/A N/A N/A N/A 22 102 49 34 13 Figure 1 Badami Field Production History 14 Figure 1 Badami Gas Disposition History