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Home My WebLink About2015 Endicott Oil PoolHL Hilcorp Alaska, LLC March 30th, 2016 Cathy Foerster, Chairman Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 RE: DUCK ISLAND UNIT, ENDICOTT FIELD, ENDICOTT OIL POOL, STATE OF ALASKA, 2015 ANNUAL RESERVOIR REVIEW Dear Commissioner Foerster: li�_O�ZY' Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone: 907/777-8445 Fax: 907/777-8580 vhughes@hilcorp.com MAR 111 ?016 0G%CG In accordance with Conservation Order No. 462, Hilcorp Alaska, LLC ("Hilcorp"), as Operator, hereby submits for your review the following Annual Reservoir Review for the Endicott Field. This is the Annual Reservoir Review and corresponds to events during the 2015 calendar year. The Endicott Field has been on production since October 1987. A. Progress of Enhanced Recovery Proiect and Reservoir Manaizement Summa During 2015, no new wells were drilled or sidetracked in the Duck Island Unit. Therefore the locations of all the wells in the Duck Island Unit have remained unchanged. Production and injection statistics are summarized in Table 1. Average daily oil production from the Endicott Oil Pool was 7,468 bopd and average daily gas injection was 315 mmscfpd. During 2015, injected fluid was calculated to be 29,113 thousand -reservoir barrels (MRB) less than reservoir voidage. At year end, the reservoir overall cumulative voidage replacement ratio was 0.93. The average reservoir pressure varies between zones. The average of surveys run in 2015 was 3,645 psia. Hilcorp became the official Operator of the Endicott Field effective November 18, 2014. As a result, the historic reservoir simulation model developed by the previous operator will no longer will be utilized in the enhanced recovery or reservoir management. Hilcorp has elected to optimize the existing waterflood patterns through streamline simulation techniques as opposed to a full field reservoir simulation model. This process will increase waterflood pattern efficiency by allocating existing water injection volumes among existing active injection wells. Streamline simulation models will be developed in 2016. Table 1: ENDICOTT FIELD 2015 OVERVIEW STATISTICAL SUMMARY WELL STATISTICS As of 1213112015 Full year (1) As of Dec -15 (2) Producers 52 51 Injectors 24 24 NOTE S: (1) Well count data reflects ONLYthose yells which contributed to praductiorNinjection during the respective year (2) Active vsells as of December 2015 PRODUCT IONIINJECTION STATISTICS Cumulative Start - Up through Production 2015 12/31/15 Oil (BBL) 2,725,894 469,208,637 Gas(MCF) 114,986,704 3,177,055,745 Water (1313L) 76,684,166 1,523,050,734 Injection Water (BBL) 76.613,219 1,865,306,656 Gas (MCF) 75,697,567 2,825,699,578 Balance Cum Production (MRB) 157,321,685 4,087,717,417 Cum injection (MRB) 128,408,314 3,795,980,345 Over/Under (MRB) -29,113,371 -291,737,072 DAILY AVERAGE RATE DATA 2015 Production Oil, BOPD 7,468 Gas, MCF/D 315,032 Water, BWPD 210.094 Injection Water, BWPD 209,899 Gas, MCFPD 207,391 AVERAGE RESERVOIR PRESSURE Average of surveys obtained in 2015 3,645 psia B. Voidne Balance by Month of Produced Fluid and Infected Fluids -2015 Produced Fluids Total Water, Voidage, Year Cum since Month Oil, RB Free Gas, RB MRB MRB Cum, MRB start-up, MRB Jan -2015 332,976 7,151, 927 6,819,442 14, 304, 344 14, 304, 344 3, 944, 500, 077 Feb -2015 306,919 6,694,285 7,013,692 14, 014, 895 28, 319, 240 3 958, 514, 972 Mar -2015 331,475 7,424,531 6,943,662 14, 699, 668 43, 018, 908 3.973, 214, 640 Apr -2015 306,473 6,576,611 6,248,977 13,132, 062 56,150,969 3, 986, 346, 702 May -2015 249,412 4,383,858 5,430,656 10, 063, 926 66, 214, 896 3, 996.410,628 Jun -2015 324,028 6,669,117 7,044,013 14, 037,158 80,252, 053 4, 010, 447, 786 Jul -2015 285,222 5,575,646 6,302,010 12,162, 877 92, 414, 931 4, 022, 610, 663 Aug -2015 249,533 5,084,582 4,954,196 10, 288, 311 102,703, 242 4, 032, 698, 974 Sep -2015 331,685 6,690,864 7,318,407 14, 340, 956 117, 044,196 4, 047, 239, 930 Oct -2015 339,428 7,293,327 6,693,893 14, 326, 647 131, 370, 845 4, 061, 566, 577 Nov -2015 301,532 6,551,148 5,759,964 12, 612, 644 143, 983, 489 4,074,179,222 Dec -2015 324,001 7,058,941 6,155, 254 13, 538,196 157, 521, 685 4,087,717 418 3,682,683 77,154, 836 76, 684,166 157, 521, 685 Page 2 Injected Fluids Total Formation Water, Injection, Year Cumsince Gas, MRB MRB MRB Cum, MRB start-up, MRB 4,858,209 6,819,442 11, 677, 651 11, 677, 651 3.679, 249, 883 4,676,732 7,013,692 11, 690, 423 23, 368, 074 3, 690, 940,106 5,098,839 6,943,662 12, 042, 500 35, 410, 574 3,702, 962, 606 4,349,781 6,248,977 10, 598, 759 46, 009, 333 3, 713, 581, 365 3,02Z 289 5,430,656 8,452,946 54, 462, 279 3, 722, 034, 311 4,324,875 7,044,013 11, 368, 888 65, 831,167 3, 733, 403,199 3,482,954 6,302,010 9,784,964 75, 616,131 3.743,188.163 3,170,173 4,954,196 8,124, 369 83,740, 500 3, 751, 312, 531 4,319,184 7,318,407 11, 637, 591 95, 378, 091 3.762, 950,123 4,882,283 6,693,893 11, 576,175 106, 954, 266 3, 774, 526, 298 4,557,492 5,759,964 10, 317, 455 117, 271, 722 3,784,843,754 4,961,336 6,155, 254 11,136, 592 128, 408, 314 3,795 980,346 51,724,147 76,684,166 128,408,314 Net Cum since Injection, Year start-up, MRB Cum, MRB MRB -2,626,694 -2, 626, 694 -265 250,394 -2,324,472 -4,951,166 -267,574,866 -2-657,168 -7,608,333 -270,232,034 -2,533,303 -10,141,636 -272,765,337 -1,610,981 -11,752,617 -274,376,317 -2,668,270 -14,420,886 -277,044,587 -2,377,914 -16,798,800 -279,422,501 -2,163,942 -16,962,742 -261,586,443 -2,703,364 -21,666,107 -284,289,507 -2,750,472 -24,416,579 -287,040,279 -2, 295,189 -26,711,767 -289,335,468 -2401,605 -29,113,372 -291,737,072 -29,113,372 C. Summary and Analysis of reservoiri)ressure surveys within the pool The following key wells in the Endicott Pool were proposed in 2015; 2015 Key Well Program 4-02 1<36, K3C 2-04 K2A 1-61 K2B 2-52 1<313, K3C 3-03 K2A Static bottomhole pressures collected in 2015 are summarized and submitted quarterly on the form 10-412 form below. The following key wells in the Endicott Pool will have static bottomhole pressure measurements captured in 2016; 2016 Key Well Program 4-46 K3A, K3B 3-31 STATE OF ALASKA 1-39A K3A 1-27 K2A, 1<26 1-55 K3C 1-65A 1<213 2-64 ALASKA OIL AND GAS CONSERVATION COMMISSION 2-62 K3A, 1<313, K3C 4-20A 1<36, K3C 3-09A K2B 1-57 K3A, K3B, K3C RESERVOIR PRESSURE REPORT K2A 4-38 K1, K2A, K2B 1-17A 1. Operator: 4-06A K3C 3-07A K3A 2. Address: K2A 2-58 K3C 1-33B K2A Hilcorp Alaska, LLC K1, K2A 4-28 K3B, K3C 3800 Ceri erpoint Or SuAe 1400, Anchorage AK 99503 3. Unit or Lease Name: 4. Fiek1 and Pool: 5. Datum Reference: 6. Oil Gravity: 7. Gas Gravity. Duck Island JullEndbott Endicott Field/Endicott Oil Pool -10000 22 88 8. Well Name and 9. AR Number 10. Type 11, AOGCC 12. Zone 13. Perforated 14. Final Test 15. Shut -In 16. Press. 17. B.H. 18. Depth 19. Final 20. Datum 21. Pressure 22. Pressure at Number. 50XXXXXXXXXXXX NO DASHES See Instructions Pool Code Intervals Top Date Time, Hours Sury. Type Bottom TV DSS (se Tenn. Tool TVDSS Observed Pressure at TVDSS input) Gradient, psifft. Datum (cal)psig instructions Tool Depth for codes) 4-02/Q-28 50029217890000 O 220100 K313, K3C 11,682'-12,764' 4/27/2015 1 SBHP 205 9,949 3,572 10,000 0.36 3,590 3-03/J-33 50029223060000 O 220100 K2A 9,888'-10,012' 4/28/2015 1 SBHP 211 9,790 3,820 10,000 0.39 3,902 2-04/M19. 50029215850000 O 220100 K2A 10,162'-10,180 7/18/2015 341 SBHP 210 10,003 4,101 10,000 0.43 4,100 2-52 50029217500000 O 220100 K38, K3C 9,937'-10,196' 10/3/2015 23,156 SBHP 207 10,001 4,444 10,000 0.37 4,443 1-61 50029225200000 O 220100 K213 9,964'-10,023' 10/8/2015 44 SBHP 208 9,944 4,033 10,000 0.43 4,057 4-14A 50029218630100 O 220100 K3C 9,958'-10,137' 10/18/15 24 SBHP 214 10,000 2,314 10,000 0.06 2,314 4-42 50029217310000 O 220100 K3C 10,063'-10,170' 10/29/15 20537 SBHP 217 9,945 3,092 10,000 0.35 3,111 Cammentis 23. Alltests reported herein were made in accordance with the applicable rules, regulations and instructions of the Alaska Oil and Gas Conservation Commission. I hereby certify that the foregoing is true and correct to the best of ny knowledge Signature Title Reservoir Engineer Printed Name Chrs Kanyer Date January 1, 2016 The following key wells in the Endicott Pool will have static bottomhole pressure measurements captured in 2016; 2016 Key Well Program 4-46 K3A, K3B 3-31 K1, K2A, 1<26 1-39A K3A 1-27 K2A, 1<26 1-55 K3C 1-65A 1<213 2-64 K3C 2-62 K3A, 1<313, K3C 4-20A 1<36, K3C 3-09A K2B 1-57 K3A, K3B, K3C 1-31 K2A 4-38 K1, K2A, K2B 1-17A K3A 4-06A K3C 3-07A K3A 2-28B K2A 2-58 K3C 1-33B K2A 2-04 K1, K2A 4-28 K3B, K3C Datum: -10,000 ssTVD The majority of the key well static surveys will be run during plant maintenance work that will result in a —30 day full field shut in during July/Aug (TAR). Page 3 D. Summary and Analysis of Gas -Oil Contact or Gas Monitoring Surveillance Plan The following table summarizes the results of the logs run in 2015 for gas monitoring. END 2015 GOC Monitoring Program Well Location Log Type Log Description Date log Results Notes 1-01 MPI I Gas Saturation Log I CCL/GR/Press/Tem /RST -Si ma 112130/20151 GOC at 12,026'MD'-10,021'ssTVD'1' Well was logged in fluid ',Vote the 1-01 was logged in 2014 and reported a different GOC. The 2015 loq analysis indicates a dearer GOC. A field wide current GOC is not likely to be identified as the Kekiktuk sands have several subzones that are vertically separated and have different permeability. In addition, faulting in the reservoir may lead to hydraulic isolation or partial pressure communication within a sub zone. Using only the 2015 RST log results and some production observations, the current GOC can be as deep as-10,021'ssTVD. E. The Following Year Gas -Oil Contact or Gas Monitoring Surveillance Plan. In 2016 we will run a cased hole pulsed neutron log in the 2-68 and 4-10A production wells to monitor GOC. Additional candidates may be identified and logged to continue GOC surveillance of the Endicott Oil Pool. F. Results and Analysis of Production and Infection log surveys tracer surveys, observation well surveys and any other special monitorine There was new production profiles were obtained in 2015. Initial focus was on gaslift optimization which included five wells. These projects are listed in Section G. Sampling from the previous waterflood tracer program has been discontinued. No current tracer program is in place. G. Future Development Plans & Review of Annual Plan of Operations and Development In 2015, Hilcorp increased unit production through well intervention projects, and other optimization opportunities, that included the evaluation of shut-in wells for potential return to service. A full field study of the Duck Island Unit was initiated. The re -mapping of all productive horizons, review of well histories, analyzed production and injection data, and past engineering, geological, and geophysical work have been studied. Projects completed during the 2015 calendar year: • MPI 2-60 well temporarily returned to production (Dec 2014) with AOGCC conditional approval. • MPI 2-40 (Prod) Gaslift survey completed (Jan 2015) • MPI 3-29 (Prod) water shut off (WSO) project successful (-4,000bwpd). (March 2015). • SDI 4-32 (Prod) Gaslift redesign - well remains shut in due to performance (July 2015) • MPI 1-09A Gas injection (GINJ) conversion. Increase gas injection capacity. (July 2015) • MPI 1-21 Water injection (WIND) conversion. Increase sweep efficiency in gas/water flooded pattern. (July 2015) • All major horizons re -mapped (Sept 2015) • MPI 2-58 (Prod) well patched tubing leak and returned to production (Sept 2015). • SDI 4-14A (Prod) Gaslift survey for optimization - well shut in due to tubing integrity leak detection (Oct 2015) • MPI 1-57 (Prod) Gaslift redesign (Oct 2015) • SDI 3-27 (Prod) Gaslift survey completed (Oct 2015) • SDI 4-04A (Prod) WSO project unsuccessful. Well produced intermittently with high water cut. (Oct 2015) • Vapor Pressure Analyzer installed (Oct 2015) o Improves operator ability to refine and blend NGLs to meet pipeline specifications Page 4 Protects postponed during the 2015 calendar year: • Rig workovers delayed until Q2 2016 due to rig limitations. In 2016, Hilcorp will pursue increased unit production through additional well intervention projects, any necessary infrastructure and facility repairs, and other optimization opportunities as they arise. No drilling activities are planned at Endicott within the 2016 calendar year. The mobilization of a workover rig to the Endicott field during May/June 2016 is currently planned. Projects planned for the 2016 calendar year: • Add Perfs in UPSZ o Add perf in bypassed or laminated pay in Endicott oil Pool. o MPI 2-26 (PROD) Perf UPSZ V o MPI 1-63 (PROD) Perf UPSZ FI o MPI 2-46B (PROD) Perf UPSZ FIV/FV o MPI 1-57 (PROD) Perf S3A2 o MPI 4-46 (PROD) Perf S3A4 o Other opportunities under assessment o Identify additional oil pay with RST logging • Perform WSO/GSO o Identify excessive water or gas production with PPROF/RST logging o Perform water/gas shut of using wireline/coil. • Perform plant maintenance work 0 30 day full field shut in during July/Aug (TAR) o Provides a shelter for surveillance of water flood pattern health • Perform water/gas flood maintenance work o Run several static bottom hole pressure (BHP) surveys or IPROF logs to identify unhealthy water flood patterns during TAR o SDI 4-42 (PROD) convert to injection to improve pattern support. o Other production well conversions to injection under assessment. o Reallocate water injection in existing injectors. • MPI 2-52 (PROD) RWO - Endicott PA - Kekiktuk UPSZ o Replace tubing and return to production. • MPI 2-50 (PROD) RWO - Endicott PA - Kekiktuk UPSZ o Conversion to WINJ to support active MPI 2-58 (PROD) & MPI 2-46B (PROD) o Patch casing, replace tubing, and return to production. • SDI 4-14A (PROD) RWO or Patch - Endicott PA - Kekiktuk UPSZ o Replace tubing or install wireline patch return to production. • MPI 2-38 (PROD) RWO - Sag Delta North PA - Ivishak o Replace tubing and return to production. • MPI 1-11 (WIND) RWO - Sag Delta North PA - Ivishak o Patch casing, replace tubing, and return to production. o Necessary if 5-03 (WIND - active) is unable to support two producers 2-32 (PROD - active) & 2-38 Hilcorp will progress the full field study of the Duck Island Unit. This may include re -mapping potentially productive horizons, updating well histories, reviewing all production and injection data, material balance Page 5 calculations, and reviewing results of well intervention projects in 2015/2016. Hilcorp will also perform waterflood pattern optimization through streamline simulation techniques. Sincerely, Chris Kanyer Reservoir Engineer - Endicott Page 6