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Home My WebLink About2015 BadamiSAVANT -. ALASKA RECEIVED April 19, 2015 APR 19 2016 AOGCC Ms. Cathy Foerster Chair, Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7th Ave #100 Anchorage, AK 99501-3539 RE: Badami Field, Badami Pool Annual Reservoir Performance Report - 2015 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 I through December 31, 2015. 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 Dai umar Pr uction Manager vant Alaska LLC cc: Bill Barron, DNR (via US Mail) Teresa Imm/Pete Stokes, ASRC (via email) Leland Tate, Glacier Oil and Gas (via email) Dan Clark, Lead Field Operations Supervisor (via email) Badami File ANNUAL RESERVOIR SURVEILLANCE REPORT BADAMI OIL POOL JANUARY 2015 - DECEMBER 2015 TABLE OF CONTENTS A. Progress of Enhanced Recovery Project and Reservoir Maintenance Summary B. Voidage Balance by Month of Produced Fluids and Injected Fluids C. Analysis of Reservoir Pressure Surveys Within the Pool D. Results of 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 I. Status of Wells Shut -In for 365 Days or More A Table 1 Table 2 Table 3 Table 4 Table 5 Figure 1 Figure 2 3 3 3 4 4 4 4 5 6 Badami Well Disposition Badami Production/Injection — Surface Units Badami Production/Injection Reservoir Units Badami Pressure Monitoring Summaries Badami Well Testing Frequency Summaries Field Production History Field Gas Disposition History 2 ANNUAL RESERVOIR SURVEILLANCE REPORT BADAMI OIL POOL January 2015 -December 2015 A. Progress of the Enhanced Recovery Project and Reservoir Management Summary Production was from 8 wells with gas injection into one well. Static pressure surveys were obtained from wells 131-15, B1 -18A, B1-36 and 131-38. Table 4 contains a summary of the static reservoir pressure readings acquired in 2015. The total volume of oil produced from the Badami reservoir during the report period was 349,693 STBO. A total of 756,518 MSCF of gas was produced of which 3,427 MSCF was injected back into the producing formation. No new wells were drilled and completed during the reporting period; however new perforations were added to wells 131 -1 IA and 131 -3 6. A total of 172' of perforations were added to B 1-11 A and a total of 149' of perforations were added to 131-36. 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 2015 was negative 774,184 reservoir barrels. C. Reservoir Pressure Monitoring Four 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. 3 D. Production Logging No production logging was conducted during the report period. E. Special Monitoring No special monitoring was performed in 2015. Downhole pressure monitoring was performed on 131-15, B 1-18A, BI -36 and BI -38 in 2015 as outlined in Table 4. Monitoring of well integrity and surveillance activity on the Class I disposal well, B1-01, was completed in 2015 and will continue pursuant to statutory requirement. 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 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 April 3, 2013, Savant Alaska LLC ("SALLC"), as Unit Operator, appealed a Decision by the DNR to approve in part and deny in part an application to expand the Badami Unit submitted on November 16, 2012. A Request for Stay was submitted to DNR on August 19, 2013. DNR has not responded to the appeal or request for stay to date. SALLC is undertaking a detailed geologic study of the Badami Unit to locate opportunities for continued development. SALLC intends to resume drilling within the Badami Unit pending favorable results of the study, and an improvement of economic conditions. 4 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 2016 to monitor Badami reservoir depletion. H. Review of Plan of Development of Operations and Development The 12th Plan of Development for the Badami Unit (POD) was approved by DNR for the period of July 16th, 2015 through July 15th, 2016. Proposed 12th POD activities include: 1. Complete a hydraulic fracture stimulation in one or both of the BI -18A and 131- 38 1- 38 wells. 2. Subject to favorable economic conditions, including increased oil prices, SALLC may drill up to two high -angle Brookian Sands development wells to increase and stabilize the production rate through the Badami plant and pipeline. 3. Complete major maintenance items, including smart pigging of the Badami oil sales pipeline and slop oil and fire tank inspection and recoating. 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 2015. Badami Shut-in Wells 2015 Sw Name Date Shut-in Reason for Well Shut-in (l) 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 Fasdrill @2450' MD w/ 50' plans Arctic Set Cement and 9-5/8" Halliburton EZSV @ 2347' MD w/ 50' of Arctic Set Cement above plug. (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) A Appendices Table 1 Badami Well Disposition — As of December 31, 2015. Completion Well Date Disposition Comment B1-01 8/19/98 Class 1 Disposal Well EPA mandated annual MIT -IA & AOGCC mandated annual fill tag performed March 17, 2015. Both satisfied regulatory requirements. Producer, cased. Originally pre- Producer 8/24/98 to present. Holes punched B1 -11A 3/04/98 produced injector. Hydraulic for POGLM 11/4/98. Application for Sundry to fracture treatment 08/17/98. install k -valve was approved on 11/3/15 and received 188,000 lbs. of sand. Xylene & from Cathy Foerster on 11/9/15 Diesel stimulation 1/25/2000, no proppant used. BI -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. 131-1 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 a pre- Injector 8/24/98 to 9/25/98. Producer 9/26/98 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 producer from 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 producer Sidetrack PTD No. 210-003. Horizontal section from November 2010 to present. completed with a slotted liner & external swell packers. Tie -back with Baker FlexlockTM liner hanger, ZXP packer and external casing packer. BI -21 1/06/98 Injector, gas. Originally a pre- Producer 8/24/98 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. BI -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 SetTM cement caps atop each. B1-28 10/20/98 Producer, trilateral. Mother bore Dedicated producer. Secured for TxIA completed with a slotted liner. Two communication 4/18/05. Repaired GLM and 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 & 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; 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 Table 2 Badami Production/Injection - Surface Units BADAMI PRODUCTION / INJECTION - SURFACE UNITS 2015 PRODUCTION Jan Feb Mar April May June July Aug Sept Oct Nov Dec 2015 Total Oil (stb) 30,710 27,877 29,720 28,228 26,636 28,972 29,036 27,057 26,600 30,785 26,501 37,571 349,693 Associated Gas (mscf) 17,996 16,336 17,416 16,542 15,609 16,978 17,015 15,855 15,588 18,040 15,530 22,017 204,920 Free Gas (mscf) 34,829 32,947 32,351 32,612 53,188 34,221 40,330 38,559 61,201 63,896 63,264 64,198 551,598 Water (stb) 350 350 374 397 404 502 343 238 482 561 355 602 4,958 2015 INJECTION Water (stb) 350 350 374 397 404 502 343 238 482 561 355 602 4,958 Gas (mscf) 406 465 336 732 1 28 39 787 1 64 549 20 3,427 Notes: (1) Per a discussion between Jack Hartz and Anna Dube on 322/00, a solution GOR of 586 was determined using product on data from 8/98 to 2/99 and is used in cakWatirg 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 based on tank levels in the slop tank. Water is injected into the B1-01 UIC Class 1 Disposal well. F, Table 3 Badami Production/Injection - Reservoir Units BADAMI PRODUCTION / INJECTION - RESERVOIR UNITS 2015 PRODUCTION Jan Feb Mar April May June July Aug Sept Oct Nov Dec 2015 Total Oil (rb) 39,923 36,240 38,636 36,696 34,627 37,664 37,747 35,174 34,580 40,021 34,451 48,842 454,601 Free Gas (rb) 20,305 19,208 18,861 19,013 31,009 19,951 23,512 22,480 35,680 37,251 36,883 37,428 321,582 Water (rb) 354 354 378 401 408 507 346 240 487 567 359 608 5,008 All Fluids (rb) 60,582 55,802 57,874 56,110 66,044 58,122 61,606 57,894 70,747 77,839 71,693 86,878 781,191 2015 INJECTION Water (rb) 354 354 378 401 408 507 346 240 487 567 359 608 5,008 Gas (rb) 237 271 196 427 1 16 23 459 1 37 320 12 1,998 All Fluids (rb) 590 625 574 828 409 523 369 699 488 604 679 620 7,007 Voidage (rb) -59,992 -55,177 -57,301 -55,283 -65,635 -57,598 -61,237 -57,195 -70,259 -77,235 -71,014 -86,258 -774,184 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 9/18/98 (reservoir temperature 165 degrees F, reservoir pressure. 6400 psi) 10 Table 4 2015 Badami Pressure Monitoring Well Test Date Operation Pressure at Datum (sia) Datum (TVDSS Feet) B1-38 5/17/2015 Pressure Build-up 2317 9608 B1 -18A 5/20/2015 Pressure Build-up 670 10030 BI -36 6/6/2015 Gas Lift Survey 938 8776 B1-15 6/26/2015 Gas Lift Survey 478 10362 11 Table 5 Badami Well Testing Frequency Summary Number of well tests in each calendar year. Well 2003 2004 2005 2006 2007 2008 2011 2012 2013 2014 2015 Bi -11A 11 0 20 84 33 0 89 36 32 17 20 B1-14 N/A N/A N/A N/A N/A N/A MNAN/A N/A N/A N/A 13 12 B1-15 3 0 15 43 0 0 35 13 25 19 13 B1-16 0 0 0 1 1 0 1 28 39 15 19 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 12 118 33 34 17 15 B1-21 0 0 22 35 18 1 4 22 11 0 1 B1-25 8 0 0 0 0 0 0 0 0 0 0 B7-28 9 0 0 0 0 MNANO/A 0 0 3 33 18 16 B1-36 7 0 25 90 36 20 145 45 43 50 31 B1-38 N/A N/A N/A N/A N/A 22 102 49 34 22 9 12 Figure 1 Badami Field Production History Badami Field Oil Production 18.000 16,000 14.000 12.000 v n B m 10.000 E 8,000 _T m a 6.000 4.000 2.000 0 1 S ' R L 8198 8/89 8/00 8101 8102 8/03 8/04 8/05 8106 8/07 8108 8109 8110 8111 8112 8113 8/14 8115 8116 817 13 Figure 1 Badami Gas Disposition History 30.000 25.000 v 20.000 CL U N E N d E 15.000 N R 0 a O 10.000 5.000 Badami Field Gas Disposition a,. E�+Gax wn+oneel 0}a nw t�1.1wx naca bury +ti.r, n as }rias•. _ :WN 858 859 8.100 8101 8102 8/03 8104 8/05 8106 8107 8i08 8/09 8110 8.11 8/12 8/13 8114 815 8/16 8)17 14