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Home My WebLink About2014 BadamiSAVANT ALASKA February 28, 2015 Ms. Cathy Foerster Chair, Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7th Ave #100 Anchorage, AK 99501-3539 FEB 2 7 2015 Subject: Badami Field, Badami Pool Annual Reservoir Performance Report - 2014 Dear Ms. Foerster: Savant Alaska LLC ("SALLC"), 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, 2014. SALLC 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 David Kumar at 907-433-3822 if there are any other questions. Sincerely, D i umar anager Production/Reservoir Engineering Cook Inlet Energy CC: Paul Decker, DNR (via US Mail) Teresa Imm, ASRC (via email) David Hall, Cook Inlet Energy (via email) Documentation Unit 601 W. 5th Avenue, Suite 310, Anchorage, AK 99501 907-334-6745(Ma€n) I 907-334-6735(Fax) ECOPY I Table of Contents 1. Progress of the Enhanced Recovery Project/Reservoir Management Summary ............ 3 2. Voidage Balance............................................................................................................. 3 3. Reservoir Pressure Monitoring....................................................................................... 3 4. Production Logging........................................................................................................ 3 5. Special Monitoring.......................................................................................................... 3 6. Evaluation of Well Testing and Allocation.................................................................... 4 7. Future Development Plans.............................................................................................. 4 8. Review of Plan of Development of Operations and Development ................................. 4 9. Status of Well Shut-in for 365 Days or More (20 AAC 25.115) .................................... 5 Appendices Table 1: Badami Well Disposition — As of December 31, 2014 ........................................ 6 Table 2: Badami Production/Injection — Surface Units ..................................................... 7 Table 3: Badami Production/Injection Reservoir Units .................................................. 8 Table 4: 2014 Badami Pressure Monitoring...................................................................... 9 Table 5: Badami Well Testing Frequency Summary....................................................... 10 Figure 1: Badami Field Production History..................................................................... 11 Figure 2: Badami Gas Disposition History...................................................................... 12 Badami Pool Annual Reservoir Performance Report - 2014 1. Progress of the Enhanced Recovery Project/Reservoir Management Summary Production was from 8 wells with gas injection into one well. Static pressure surveys were obtained from wells 131-14, B1 -18A, BI -36 and 131-38. Table 4 contains a summary of the static reservoir pressure readings acquired in 2014. The total volume of oil produced from the Badami reservoir during the report period was 392,464 STBO. A total of 555,615 MSCF of gas was produced of which 3,881 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 Figure 1 and Figure 2 respectively. 2. Voidage Balance Production and injection volumes and reservoir voidage by month are detailed in Table 2 and Table 3. Cumulative voidage for 2014 was negative 697,784 reservoir barrels. 3. 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. 4. Production Logging No production logging was conducted during the report period. 5. Special Monitoring No special monitoring was performed in 2014 Downhole pressure monitoring was performed on B 1-14, B 1-18A, B 1 -3 6 and B 1-3 8 in 2014 as outlined in Table 4. 3 Monitoring of well integrity and surveillance activity on the Class I disposal well, B 1- 01, was completed in 2014 and will continue pursuant to statutory requirement. 6. 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 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. 7. 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. 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. Savant met with DNR Commissioner on October 8, 2014 to discuss the appeal of the Badami Unit Expansion decision. No decision has been made by DNR on the appeal to date. 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 2015 to monitor Badami reservoir depletion. 8. Review of Plan of Development of Operations and Development The 11th Plan of Development for the Badami Unit (POD) was approved by the Department of Natural Resources for the period of November 16, 2014 through July 15, 2015. Proposed 11th POD activities include: 1. Evaluate the results of hydraulic fracture simulations on wells BI -18A and 131-38. 2. Drill two high angle Brookian Sands development wells 3. Significant preventative maintenance and repairs to the plant and facility 4 9. Status of Well Shut-in for 365 Days or More (20 AAC 25.115) The following wells were shut-in for all of 2014. Badami Shut-in Wells 2014 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 Collapsed tubing and casing at D. Long term shut-in Problem 4504' MD. Halliburton 9-5/8" well/No immediate Fast drill @2450' MD w/ 50' plans Arctic Set Cement and 9-5/8" Halliburton EZSV @ 2347' MD w/ 50' of Arctic Set Cement above plug. 5 APPENDICES Table 1: Badami Well Disposition — As of December 31, 2014 Completion Well Date Disposition Comment Bl -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. Producer, cased. Originally pre- Producer 8124198 to present. Holes punched B1 -11A 3/04/98 produced injector. Hydraulic for POGLM 11/4/98. "No -Flow" test witnessed fracture treatment 08/17/98. & verbally certified as successful by AOGCC on 188,000 lbs. of sand. Xylene & Diesel 09/4/12. Formal approval letter received from stimulation 1/25/2000, no proppant James Regg on 10/5/12. used. B1-14 5/01/98 Producer, cased with installed K- Pull MCX valve and set K -Valve to convert well Valve, 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 Main borehole completed with slotted liner then present. 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 pre- Injector 8/24/98 to 9/25/98. Producer 9126198 produced injector, cased. J-2 and to 10/21/98. Well worked over & ESP Installed A-5 sands stimulated 09/17/98, in March 2012. Dedicated producerfrom proppant employed. 5/11/12 to present. "No -Flow" certified 08/16/2013 B1 -18A 3/12/10 Producer. Sidetracked unilateral P&A to sidetrack under Sundry 309-366. horizontal well. Dedicated Sidetrack PTD No. 210-003. Horizontal section producer from November 2010 to completed with a slotted liner & external swell present. packers. Tie -back with Baker Flexlock-liner hanger, ZXP packer and external casing packer. B1-21 1/06/98 Injector, gas. Originally a pre- Producer 8124198 to 09/28/99. Injector produced gas injector, hydraulic 09/29/99 to August 2005. Producer October stimulated, but no proppant 2005 through July 2013. Running tool Fish employed. Now in service as a gas recovered 3/8/12. Reconversion to injector service injection well. under Sundry 313-362 issued 7/27/13. Bl -25 11/20/98 Suspended Well. Unilateral, cased, Tubing collapse confirmed 9/07/04. Well completed with slotted liner. 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 Dedicated producer. Secured for TxIA completed with a slotted liner. communication 4/18/05. Repaired GLM and Two additional legs have plop passed MIT 10/08/12. Tubing & Liner plugs and drop slotted liners with open removed, then placed back on production hole tie -backs. 6/21/2013. B1-36 5/23/99 Producer, unilateral, cased. Now Originally POP 5/30/99 and sustained through perforated in and producing from 2 shut-in & re -start cycles. Variously produced from Badami Sands. Kekiktuk, Killian & Bodomi 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; Post drilling 10-3/4" casing leak repaired in unilateral cased & perforated, March 2010. Kekiktuk tested non-productive. frac'd 7 Sept 2011, no proppant. Dedicated Killian producer 11/16/10 to present. Table 2: Badami Production/Injection - Surface Units 7 BADAMI PRODUCTION/ INJECTION -SURFACE UNITS 2014 PRODUCTION Jan Feb Mar April May June July Aug Sept Oct Nov Dec 2014 Total Oil (stb) 37,017 33,052 32,700 32,923 34,919 32,746 32,412 31,915 31,197 32,386 30,505 30,692 392,464 Associated Gas (mscf) 21,692 19,368 19,162 19,293 20,463 19,189 18,993 18,702 18,281 18,978 17,876 17,986 229,984 Free Gas (mscf) 26,047 28,007 24,641 22,781 28,530 25,362 23,286 27,334 28,888 31,531 28,040 31,185 325,631 Water (stb) 0 0 0 0 0 0 0 0 0 0 0 0 0 2014 INJECTION Water (stb) 0 0 0 0 0 0 0 0 0 0 0 0 0 Gas (mscf) 0 0 0 0 0 0 98 398 734 862 1,046 743 3,881 Notes: (1) Per a discussion between Jack Hartz and Anna Dube on 322/00, 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. 7 Table 3: Badami Production/Injection - Reservoir Units BADAMI PRODUCTION I INJECTION - RESERVOIR UNITS 2014 PRODUCTION Jan Feb Mar April May June July Aug Sept Oct Nov Dec 2014 Total Oil (rb) 48,122 42,968 42,510 42,800 45,395 42,570 42,136 41,490 40,556 42,102 39,657 39,900 510,203 Free Gas (rb) 15,185 16,328 14,366 13,281 16,633 14,786 13,575 15,936 16,841 18,382 16,347 18,181 189,843 Water (rb) 0 0 0 0 0 0 0 0 0 0 0 0 0 All Fluids (rb) 63,308 59,295 56,876 56,081 62,028 57,356 55,711 57,425 57,398 60,484 56,004 58,081 700,046 2014 INJECTION Water (rb) 0 0 0 0 0 0 0 0 0 0 0 0 0 Gas (rb) 0 0 0 0 0 0 57 232 428 503 610 433 2,263 All Fluids (rb) 0 0 0 0 0 0 57 232 428 503 610 433 2,263 Voidage (rb) -63,308 -59,295 -56,876 -56,081 -62,028 -57,356 -55,654 -57,193 -56,970 -59,982 -55,394 -57,648 -697,784 Oil Formation Volume Factor, Bo 1.300 rb/stb Gas Formation Volume Factor, Bg 0.00058 rb/scf 0.00328 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 9/1858 (reservoir temperature 185 degrees F, reservoir pressure: 6400 psi) Table 4: 2014 Badami Pressure Monitoring Well Test Date Operation Pressure at Datum (psia) Datum (TVDSS Feet) B1-14 3/14/14 Static Pressure 1,483 10,090 B1 -18A 4/1/14 Static Pressure 1,792 10,180 BI -36 3/31/14 Static Pressure 2,085 8,778 B1-38 4/6/14 Static Pressure 2,424 10,661 Table 5: Badami Well Testing Frequency Summary Well 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 B1 -11A 11 0 20 84 33 0 0 0 89 36 32 17 B1-14 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 13 B1-15 3 0 15 43 0 0 0 4 35 13 25 19 B1-16 0 0 0 1 1 0 0 0 1 28 39 15 B1-18 1 0 18 64 19 1 0 0 0 0 0 0 1 0 Bl -18A N/A N/A N/A N/A N/A N/A N/A 12 118 33 34 17 B1-21 0 0 22 35 18 0 0 1 4 22 11 0 B1-25 8 0 0 0 0 0 0 0 0 0 0 0 B1-28 9 0 0 0 0 0 0 0 0 3 33 18 B1-36 7 0 25 90 36 0 0 20 145 45 43 50 B1-38 N/A N/A N/A N/A N/A N/A N/A 22 102 49 34 22 10 Figure 1: Badami Field Production History Badami Field Oil Production 18,000 16,000 14,000 12,000 v a O a m 10,000 E O 8.000 _T N 0 6,000 4,000 2.000 0 82458 824x99 823)00 823101 8123ND2 823/03 822)0a 822)05 822)06 822)07 821/78 821)09 821110 821111 8.20!12 820113 820114 82Q'15 8'19'16 11 Figure 2: Badami Gas Disposition History Badami Field Gas Disposition 30,000 25,000 20,000 a N m 15,000 N A T R Q 10,000 5.000 8'24.198 824;99 6'23,00 823,01 82302 8.23X3 &2204 8.22705 8/'2.106 82 20 7 871108 8121M 8(2100 821111 &2"2 8200 3 8/2011 4 8 /1011 5 811 911 6 12