The URL can be used to link to this page

Home My WebLink About2016 Milne Point UnitRECEIVED MAR 3 12017 Hilcorp Alaska, LLC 1 March 27th, 2017 Cathy Foerster, Chairman Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 100 Anchorage, AK 99503 Phone: 907/777-8414 Fax: 907/777-8580 dduffy@hilcorp.com RE: MILNE POINT UNIT, MILNE POINT FIELD, KUPARUK RIVER OIL POOL, SCHRADER BLUFF OIL POOL, SAG RIVER OIL POOL, STATE OF ALASKA, 2016 ANNUAL RESERVOIR REVIEW Dear Commissioner Foerster: In accordance with Conservation Order No. 205, 477, 423, 550.007, and 550.006, Hilcorp Alaska, LLC ("Hilcorp"), as Operator, hereby submits for your review the following Annual Reservoir Review for the Milne Point Field. This is the 16' Annual Reservoir Review and corresponds to events during the 2016 calendar year. Sinc r I , n ny McConk y Reservoir Engineer— Milne Point Milne Point Unit Waterflood and Reservoir Surveillance Report for Kuparuk River Oil Pool Schrader Bluff Oil Pool Sag River Oil Pool January through December, 2016 Issued: March 30th, 2017 Sections and Exhibits Introduction Kuparuk River Oil Pool 1 Section 1: Kuparuk River Oil Pool Exhibits 1A —1B Schrader Bluff Oil Pool 2 Section 2: Schrader Bluff Oil Pool Exhibits 2A — 2B Sag River Oil Pool 3 Section 3: Sag River Oil Pool Exhibits 3A — 3B Production/Injection Surveillance Logs 4 Section 4: Production/Injection Well Surveillance Exhibits 4A — 4B Shut in Well Exhibit 5 Section 5: Shut in Well Statuses 5A Milne Point Well Testing 6 Section 6: Well Test Exhibits 6A — 6C Milne Point Plan of Operations and Development 7 Section 7: Review of Annual Plans of Operations 7A ANNUAL RESERVOIR SURVEILLANCE REPORTS MILNE POINT UNIT KUPARUK RIVER OIL POOL SCHRADER BLUFF OIL POOL SAG RIVER OIL POOL JANUARY - DECEMBER 2016 Introduction As required by Conservation Order 205 for the Kuparuk River Oil Pool, approved October 4, 1984, Conservation Order 477, approved August 23, 2002 for the Schrader Bluff Oil Pool, Conservation Order 423 for the Sag River Oil Pool, approved May 6, 1998, and Conservation Order 550.007 for all Milne Point Pools, approved January 6, 2009, and Conservation Order 550.006 for all Milne Point Pools, amended February 14, 2015, this report provides a consolidated summary of surveillance activities within the Milne Point Unit. The report includes surveillance data associated with waterflood projects and development activities. The time period covered is January through December 2016. Order 205, Rule 3 for the Kuparuk River Oil Pool requires the Operator to submit the following for the previous calendar year: a. A tabulation of reservoir pressure and injection pressure data on wells in the waterflood permit area. b. A tabulation of all production logs, injection well surveys, and injection well performance data. c. Produced and injected fluid (oil, gas, and water) volumes reported by month and cumulative. Order 477, Rule 10 for the Schrader Bluff Oil Pool requires the Operator to submit the following for the previous calendar year: a. Progress of enhanced recovery project(s) implementation and reservoir management summary including results of reservoir studies. (CO 283, Rule 2 Part 2) b. Voidage balance by month of produced fluids and cumulative fluids and cumulative status for each producing interval. (CO 283, Rule 2, Part 2) c. Summary and analysis of reservoir pressure surveys within the pool. (CO283, Rule 2, Part 3) d. Results, and, where appropriate, analysis of production and injection logging surveys, tracer surveys and observation well surveys, and any other special monitoring. (CO 283, Rule 2, Part 4) e. Review of well testing and pool production allocation factors over the prior year. (CO 477, Rule 6, Part 2) f Future development plans. (New rule, CO 477) g. Review of Annual Plan of Operations and Development. Note: A separate Plan of Development is sent annually by October 1 as part of DNR reporting. (New rule, CO 477) Order 423, Rule 12 for the Sag River Oil Pool requires the Operator to submit the following for the previous calendar year: a. Progress of enhanced recovery project implementation and reservoir management summary including engineering and geotechnical parameters. b. Voidage balance by month of produced fluids and injected fluids and cumulative status. c. Analysis of reservoir pressure within the pool. d. Results, and, where appropriate, analysis of production logging surveys, tracer surveys and observation well surveys. e. Review of pool allocation factors over the prior year. E Future development plans. Order 550.007, Rule 2 for All Milne Point Pools requires the Operator to submit the following for the previous calendar a. A summary of the performance and operational issues relating to the Unit 5 MPFM. b. The monthly oil, gas and water allocation factors for each Milne Point Field pool. Order 550.006 for All Milne Point Pools requires the Operator to submit the following for the previous calendar a. A summary of all installations to date and the performance of each Gen 2 (VSRD meter). b. All operational issues and any additional Gen 2 test results. Each of the three producing reservoirs is reported in a separate section. Section 1 Kuparuk River Oil Pool List of Exhibits Reservoir Voidage Balance 1-A Static Pressure Data (Form 10-412) 1-B Kuparuk River Oil Pool Waterflood Project Summary Exhibit 1-A shows a monthly breakdown of production and injection data for the report period. Cumulative water injection since waterflood startup through the end of 2016 is 568.6 MMSTB and cumulative gas injection is 101 BSCF. This data shows that the voidage replacement ratio averaged 0.83 RB/RB in 2016. The VRR still remained under 1.0 BBL/BBL in order to reduce reservoir pressures in areas where pressure gradient exceeds that of standard saltwater brine (-0.46 psi/ft). The Kuparuk River Oil Pool is split up in Hydraulic Units which represent regions of the reservoir that are believed to be hydraulically isolated due to faulting and/or lithologic controls. There were 75 producing wells and 49 injection wells active at year-end 2016. The increase in producer well count is likely a result of reactivating long term shut-in producers previously thought as uneconomic under the previous operator. Hilcorp also utilized the smaller ASR rig which allowed for RWO's into the summer, which was a limitation under BP's operatorship due to the thawing/softening of pad roads during the warmer summer months. Exhibit 1-B presents the reservoir pressure data taken during 2016 for the Kuparuk River wells. In 2016, 16 static pressure readings were obtained in the Kuparuk River reservoir. Exhibit 1-A Reservoir Voidage Balance Summary Kuparuk Pool January - December 2016 Daily Production Rate Averages By Month: Daily Injection Rate Averages By Month: Oil Water Gas Reservoir Water Gas Voidage Voidage Voidage Month Prod Rate Prod Rate Prod Rate Voidage Inj Rate Inj Rate Replacement Replacement Balance (stb/day) (stb/day) (mscf/day) (rbbl/day) (stb/day) (mscf/day) (rbbl/day) Ratio (rbbl/day) 1/31/2016 12,102 66,065 8,500 85,490 71,056 2,497 74,182 0.87 -11,308 2/29/2016 12,647 66,133 8,997 86,484 68,257 2,574 71,405 0.83 -15,079 3/31/2016 12,228 64,134 9,428 84,414 68,293 2,935 71,739 0.85 -12,675 4/30/2016 11,898 65,529 9,599 85,660 71,532 3,512 75,503 0.88 -10,157 5/31/2016 11,714 63,785 10,157 84,177 66,323 5,055 71,489 0.85 -12,688 6/30/2016 11,471 62,186 9,951 82,155 58,579 4,410 63,097 0.77 -19,058 7/31/2016 11,605 66,151 10,779 86,988 63,277 5,168 68,490 0.79 -18,498 8/31/2016 11,272 67,255 11,436 88,337 65,237 5,370 70,646 0.80 -17,691 9/30/2016 11,064 68,422 11,645 89,497 63,569 5,361 68,946 0.77 -20,552 10/31/2016 11,486 70,991 12,997 93,620 65,168 6,077 71,159 0.76 -22,460 11/30/2016 11,735 66,820 12,989 89,615 69,021 6,570 75,477 0.84 -14,138 12/31/2016 11,056 59,046 11,272 79,666 68,966 6,150 75,075 0.94 -4,591 Cumulative Production By Month: Cumulative Injection By Month: Oil Water Gas Reservoir Water Gas Voidage Voidage Voidage Month Cumulative Cumulative Cumulative Voidage Cumulative Cumulative Replacement Replacement Balance (stb) (stb) (mscf) (rbbl) (stb/day) (mscf/day) (rbbl) Ratio (rbbl) 1/31/2016 375,153 2,048,011 263,492 2,650,179 2,202,726 77,412 2,299,639 0.87 -350,540 2/29/2016 366,751 1,917,871 260,911 2,508,028 1,979,447 74,660 2,070,740 0.83 -437,288 3/31/2016 379,058 1,988,147 292,270 2,616,847 2,117,081 90,989 2,223,912 0.85 -392,935 4/30/2016 356,931 1,965,860 287,957 2,569,785 2,145,957 105,372 2,265,089 0.88 -304,697 5/31/2016 363,132 1,977,330 314,875 2,609,490 2,056,026 156,703 2,216,162 0.85 -393,328 6/30/2016 344,124 1,865,590 298,517 2,464,638 1,757,373 132,309 1,892,901 0.77 -571,737 7/31/2016 359,747 2,050,666 334,146 2,696,631 1,961,600 160,195 2,123, 200 0.79 -573,431 8/31/2016 349,418 2,084,904 354,526 2,738,451 2,022,351 166,471 2,190,041 0.80 -548,410 9/30/2016 331,905 2,052,659 349,346 2,684,921 1,907,060 160,833 2,068,369 0.77 -616,552 10/31/2016 356,066 2,200,717 402,921 2,902,205 2,020,201 188,376 2,205,933 0.76 -696,273 11/30/2016 352,063 2,004,605 389,677 2,688,446 2,070,626 197,101 2,264,313 0.84 -424,134 12/31/2016 342,734 1,830,431 349,427 2,469,646 2,137,961 190,637 2,327,325 0.94 -142,321 Average: stb/d stb/d mscf/d rb/d stb/d mscf/d rb/d rb/d 2016 11,690 65,543 10,646 86,342 66,607 4,640 2,178,969 0.83 -454,304 Cumulative: stb stb mscf rb stb mscf rb rb 31 -Dec -16 4,277,082 23,986,791 3,898,065 31,599,389 24,378,409 1,701,058 27,522,145 0.87 -4,077,245 Exhibit 1-B Form 10-412 Kunaruk Pool STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator: Hilcorp Alaska, LLC. 2. Address: 3800 Cenlerpoinl Dr. Anchorage, AK99516 3. Unit or Lease Name: Mine Point 4. Field and Pool: Kuparuk River Pool 5. Datum Reference: 7000' SS Oil Gravity: API - 23 7. Gas Gravity: Air = 1.0 8. Well Name and Number: 9. AR Number 50-XXX-XXXXX-XX-XX 10. Oil (0) or Gas (G) 11. AOGCC Pool Code 12. Final Test Date 13. Shut -In Time, Hours 14. Press. Surv. Type (see instructions for codes', 15. B.H. Tenp. 16. Depth Tool TVDss 17. Final Pressure at Tool Depth 18. Datum 19. Pressure TVDss Gradient, psilft. (input) 20. Pressure Comments mm at Datum (cal) Zone MPF -25 50-029-22546-00-00 PROD 525140 2/29/2016 264 SBHP 191 6,978 2,747 7000 0.43 2,756 Slickline Gauges A1/A2/A3 MPE-10 50-029.22521-00-00 PROD 525100 3/12/2016 384 SBHP 180 6,630 2,978 7000 0.43 3,137 Slickline Gauges C1/B7 MPK-30 50-029-22711-00-00 PROD 525100 3/19/2016 1,800 SBHP 160 6,865 2,886 7000 0.43 2,944 Slickline Gauges C1/B7 MPC -15 50-029-21358-00-00 INJ 525100 3/31/2016 LTSI SBHP 130 6,854 4,655 7000 0.43 4,718 Slickline Gauges C1/A3/A2 MPD -01 50-029-20664-00.00 PROD 525100 5/7/2016 LTSI SBHP 167 7,187 3,373 7000 0.43 3,293 Slickline Gauges C1/B7 MPF -14 50-029-22636-00-00 PROD 525100 5/10/2016 240 SBHP 177 6,798 2,449 7000 0.43 2,536 Slickline Gauges A1/A2/A3 MPC -22A 50-029-22489-01-00 PROD 525100 5/30/2016 360 SBHP 135 5,575 2,070 7000 0.43 2,683 Slickline Gauges A2/A3 MPB-19 50-029-21451-00-00 INJ 525100 7/13/2016 LTSI SBHP 171 7,000 3,128 7000 0.43 3,128 Slickline Gauges C1/B7/A3 MPF -34 50-029-22824-00-00 PROD 525100 8/31/2016 528 SBHP 145 5,950 1,038 7000 0.43 1,490 Slickline Gauges C1/A3 MPE-14A 50-029-2273401-00 PROD 525100 10/9/2016 4,008 SBHP 170 4,236 2,703 7000 0.43 3,892 ESP Gauge B7 MPF -38 50-029.2261400-00 PROD 525100 10/18/2016 3,864 SBHP 174 7,008 3,298 7000 0.43 3,295 Slickline Gauges A1/A21A3 MPL-39 50-029-22786-00-00 PROD 525100 10/26/2016 LTSI SBHP 159 6,746 3,577 7000 0.43 1 3,686 Slickline Gauges A2/A3 MPF -14 50-029-22636-00-00 PROD 525100 11/13/2016 144 SBHP 171 6,849 3,112 7000 0.43 3,177 Slickline Gauges A1/A2/A3 MPF -29 50-029-22688-00-00 PROD 525100 11/16/2016 6,240 SBHP 103 4,641 873 7000 0.43 1,887 Slickline Gauges Al/A2/A3 MPC -20 50-029-21914-00-00 PROD 525100 12/4/2016 LTSI SBHP 172 6,988 3,992 7000 0.43 3,997 Slickline Gauges C1/B6/A3/A2 MPL-36 50-029-2279400-00 PROD 525100 12/31/2016 1,176 SBHP 150 5,908 2,536 7000 0.43 3,006 ESP Gauge A21A3 Average 3,101 21. All tests reported herein were made in accordance w Rh 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 my knowledge. Signature Title Reserwir Engineer Printed Name Anthony a McConkey Date 3/17/2017 Section 2 Schrader Bluff Oil Pool List of Exhibits Reservoir Voidage Balance PW Static Pressure Data (Form 10-412) 2-B Schrader Bluff Oil Pool Waterflood Project Summary Exhibit 2-A shows a monthly breakdown of production and injection data for the report period. The Schrader Bluff Oil Pool oil production averaged 7.4 MSTBD for 2016 compared to 5.6 MSTBD in 2015 due to an active workover program and renewed development drilling. The water injection rate averaged 26.6 MBWD for 2016 compared to 25.9 MBWD in 2015. The increase is primarily attributed to new horizontal injection wells drilled at B & L -pads. Cumulative water injection since waterflood startup through the end of 2016 is 177.2 MMSTB. Gas injection in the Schrader began in 2006 and was discontinued after December 2008 due to inadequate response. No gas was injected in 2009 to 2016. Cumulative gas injection through the end of 2016 remains as it was at year-end 2008: 220 MMSCF. During the 2016 calendar year, the cumulative under -injection has been reduced from 26 to 23.6 MNMB . In the supported waterflood patterns, under -injection is minimal. The average voidage replacement ratio, or VRR, for 2016 was 1.15.. Future development plans for the Schrader Bluff oil pool include expansion into undeveloped areas in the North West area of the pool, and the evaluation of EOR techniques suitable for Viscous Oil application. Northwest expansion in the Schrader Bluff reservoir began with L -pad drilling towards the end of 2016 which targeted Schrader OA sands. Additional development is planned in the F&L pad areas as well as N -sand drilling at B -pad and J -pads within the Schrader Bluff reservoir. Additional development info can be found in the attached Plan of Development Review slides in Section 7. Exhibit 2-13 presents the reservoir pressure data for the Schrader Bluff wells taken during 2016. In 2016, 35 static pressures were obtained. Exhibit 2-A Reservoir Voidage Balance Summary Schrader Bluff Pool January - December 2016 Production Rate Averages: Injection Rate Averages: Oil Water Gas Reservoir Water Gas Voidage Voidage Voidage Month Prod Rate Prod Rate Prod Rate Voidage Inj Rate Inj Rate Replacement Replacement Balance (stb/day) (stb/day) (mscf/day) (rbbl/day) (stb/day) (mscf/day) (rbbl/day) Ratio (rbbl/day) 1/31/2016 6,283 13,301 2,783 22,364 26,690 0 26,957 1.21 4,592 2/29/2016 6,473 13,875 2,380 22,526 25,079 0 25,330 1.12 2,805 3/31/2016 6,724 14,571 2,286 23,297 26,397 0 26,661 1.14 3,365 4/30/2016 7,501 14,376 2,745 24,365 27,422 0 27,696 1.14 3,331 5/31/2016 7,460 16,007 3,142 26,541 27,281 0 27,554 1.04 1,012 6/30/2016 7,232 13,789 2,350 23,000 26,901 0 27,170 1.18 4,170 7/31/2016 7,622 15,976 2,418 25,616 26,859 0 27,128 1.06 1,512 8/31/2016 8,124 16,604 1,934 25,966 24,999 0 25,249 0.97 -717 9/30/2016 8,055 16,374 1,950 25,702 24,611 0 24,857 0.97 -844 10/31/2016 7,528 16,063 1,822 24,787 25,994 0 26,253 1.06 1,467 11/30/2016 7,798 16,637 2,138 26,028 27,319 0 27,592 1.06 1,564 12/31/2016 8,208 16,279 2,025 25,833 30,090 0 30,391 1.18 4,558 Cumulative Production: Cumulative Injection: Oil Water Gas Reservoir Water Gas Voidage Voidage Voidage Month Cumulative Cumulative Cumulative Voidage Cumulative Cumulative Replacement Replacement Balance (stb) (stb) (mscf) (rbbl) (stb/day) (mscf/day) (rbbl) Ratio (rbbl) 1/31/2016 194,787 412,317 86,276 693,297 827,385 0 835,659 1.21 142,362 2/29/2016 187,710 402,367 69,017 653,241 727,301 0 734,574 1.12 81,333 3/31/2016 208,444 451,703 70,877 722,197 818,317 0 826,500 1.14 104,303 4/30/2016 225,041 431,266 82,348 730,964 822,660 0 830,887 1.14 99,923 5/31/2016 231,251 496,218 97,409 822,778 845,706 0 854,163 1.04 31,385 6/30/2016 216,955 413,671 70,486 690,005 807,040 0 815,110 1.18 125,105 7/31/2016 236,289 495,243 74,967 794,107 832,638 0 840,964 1.06 46,857 8/31/2016 251,829 514,724 59,953 804,945 774,960 0 782,710 0.97 -22,235 9/30/2016 241,651 491,225 58,490 771,045 738,333 0 745,716 0.97 -25,329 10/31/2016 233,353 497,941 56,484 768,392 805,800 0 813,858 1.06 45,466 11/30/2016 233,943 499,107 64,139 780,850 819,567 0 827,763 1.06 46,912 12/31/2016 254,433 504,638 62,778 800,820 932,791 0 942,119 1.18 141,299 Average: stb/d stb/d mscf/d rb/d stb/d mscf/d rb/d rb/d 2016 7,417 15,321 2,331 24,669 26,637 0 26,903 1.09 2,234 Cumulative: stb stb mscf rb stb mscf rb rb 31 -Dec -16 2,715,686 5,610,420 853,224 8,961,439 9,752,498 0 9,947,548 1.11 986,109 Exhibit 2-B Form 10-412 Cchrarler RlnfFPnnl STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator: Filcorp Alaska, LLC. 2. Address: 3800 Centerpoint Dr. Anchorage, AK 99516 3. Lhrit or Lease Name: Milne Point 4. Feld and Pool: Schrader Bluff Pool 5. Datum Reference: 4000' SS 6. Oil Gravity: AR = 14 -22 7. Gas Gravity: Air= 0.65 8. Well Name and Number: 9. AR Number 50-XXX-XXXXX-XX-XX 10. Oil (0) or Gas 11. AOGCC (G) Pool Code 12. Final Test Date 13. Shut -In Time, Hours 14. Press. Surv. Type (see Instruct ku� w 15. B.H. Temp. w 16. Depth Tool TNDss i w 17. Final Pressure at Tool Depth ; w 18. Datum iVDss (input), 19. Pressure Gradient, psVft. 20. Pressure at Datum (Cel) I w Comments Zone MPG -02 50-029-21926-00-00 PROD 525140 1/30/2016 336 SBHP 87 3,721 1,161 4,000 0.40 1,284 Slickline Gauges NA/NB/NC MPS -02 50-029-23169-00-00 INJ 525140 2/1/2016 3,432 SBHP 86 4,077 2,675 4,000 0.40 2,641 Slickline Gauges NB MPL-47 50-029-23550-00-00 PROD 525140 2/17/2016 1 New Well SBHP 73 3,394 1,563 4,000 0.40 1,825 ESP Gauge OA MPB-29 50-029-23564-00-00 INJ 525140 3/28/2016 New Well SBHP 88 4,388 2,054 4,000 0.40 1,885 Slickline Gauges NO MPB-28 50-029-23566-00-00 PROD 525140 3/30/2016 New Well SBHP 85 4,320 2,024 4,000 0.40 1,886 Slickline Gauges NO MPJ -15 50-029-22952-00-00 INJ 525140 4/23/2016 6,984 SBHP 86 4,086 1,827 4,000 0.40 1,790 Slickline Gauges NB/OA/OB MPJ -19A 50-029-22607-01-00 INJ 525140 4/23/2016 888 SBHP 79 4,005 1,823 4,000 0.40 1,821 Slickline Gauges OA MPE-31 50-029-23263-00-00 PROD 525140 5114/2016 30 PBU 89 4,240 1,539 4,000 0.40 1,443 Downhole Tbg Gauge MPJ -27 50-029-23557-00-00 PROD 525140 5/27/2016 New Well SBHP 71 3,534 1,621 4,000 0.40 1,803 ESP Gauge NB MPJ -23A 50-029-22970-01-00 INJ 525140 6/4/2016 New Well SBHP 67 3,486 1,569 4,000 0.40 1,770 Slickline Gau es NB MPI -04A 50-029-22068-01-00 PROD 525140 6/14/2016 3,384 SBHP 75 3,600 1,046 4,000 0.40 1,206 Slickline Gauges NA/NB/NC/OA/OB MPJ -28 50-029-23558-00-00 PROD 525140 6/15/2016 New Well SBHP 70 3,356 1,560 4,000 0.40 1,818 ESP Gauge NB MPI -13 50-029-23012-00-00 INJ 525140 6/26/2017 960 SBHP 45 2,229 1,555 4,000 0.40 2,263 Slickline Gauges OB MPI -17 50-029-23212-00-00 PROD 525140 6/26/2017 36 PBU 76 3,840 1,207 4,000 0.40 1,271 ESP Gauge NB/OA/OB MPS -28 50-029-23158-00-00 PROD 525140 6/27/2016 96 SBHP 77 3,842 1,346 4,000 0.40 1,409 ESP Gauge NB MPG -16 50-029-23189-00-00 PROD 525140 6/27/2016 78 PBU 88 4,200 1,318 4,000 0.40 1,238 ESP Gauge OA/OB MPJ -08A 50-029-20497-01-00 PROD 525140 6/28/2016 96 PBU 80 3,758 1,225 4,000 0.40 1,322 ESP Gauge OB MPE-24A 50-029-22867-00-00 PROD 525140 7/9/2016 85 PBU 83 4,189 1,582 4,000 0.40 1,506 Downhole Tbg Gauge (36) OA/OB MPS -05 50-029-23100-00-00 PROD 525140 7/9/2016 100 SBHP 85 4,039 1,170 4,000 0.40 1,154 ESP Gauge OA/OB MPS -27 50-029-23084-00-00 PROD 525140 8/12/2016 2,736 SBHP N/A 3,999 1,410 4,000 0.40 1,410 Downhole Tbg Gauge OA/OB MPH -16 50-029-23227-00-00 PROD 525140 8/23/2016 430 SBHP 86 3,843 1,217 4,000 0.40 1,280 Slickline Gauges OA/OB MPE-32 50-029-23261-00-00 PROD 525140 911/2016 88 PBU 105 4,375 1,275 4,000 0.40 1,125 ESP Gauge NC/ND/OA MPH -15 50-029-23284-00-00 INJ 525140 9/4/2016 8,304 SBHP 84 4,133 1,409 4,000 0.40 1,356 Slickline Gauges OA/OB MPJ -02 50-029-22071-00-00 INJ 525140 9/5/2016 LTSI SBHP 74 3,800 1,756 4,000 0.40 1,836 Slickline Gauges NAINB/NC/ND MPG -09 50-029-22779-00-00 INJ 525140 9/16/2016 1,224 SBHP 80 4,073 2,853 4,000 0.40 2,824 Slickline Gauges NB/OA MPE-20A 50-029-22561-01-00 PROD 525140 9/19/2016 1,200 SBHP 87 4,227 1,516 4,000 0.40 1,425 Slickline Gauges NB/OA MPI -15 50-029-23106-00-00 PROD 525140 9/25/2016 266 PBU 78 3,704 1,206 4,000 0.40 1,324 ESP Gauge OA/OB MPL-46 50-029-23551-00-00 PROD 525140 10/17/2016 1,752 SBHP 67 3,374 1,634 4,000 0.40 1,884 ESP Gauge OA MPG -15 50-029-22784-00-00 PROD 525140 10/24/2016 LTSI SBHP 82 3,900 1,804 4,000 0.40 1,844 ESP Gauge NB/NC/OA/OB MPG -04 50-029-21941-00-00 PROD 525140 10/31/2016 LTSI SBHP 72 3,656 1,570 4,000 0.40 1,708 Slickline Gauges NA/NB/NC/NE/OA/OB MPI -07 50-029-22602-00-00 PROD 525140 10/31/2016 6,000 SBHP 74 3,484 1,414 4,000 0.40 1,620 Slickline Gauges NB/NC/OA/OB MPJ -04 50-029-22073-00-00 PROD 525140 11/13/2016 4,920 SBHP 63 3,154 1,428 4,000 0.40 1,766 Slickline Gauges NA/NB/NE/OA/OB MPJ -21 50-029-22825-00-00 PROD 525140 11/14/2016 LTSI SBHP 74 3,772 1,372 4,000 0.40 1,463 Slickline Gauges OA/OB MPS -25 50-029-23089-00-00 PROD 525140 12116/2016 2,232 SBHP 80 4,036 1,673 4,000 0.40 1,659 Downhole Tbg Gauge OA/OB MPE-15 50-029-22528-00-00 PROD 525140 12131/2016 8,760 SBHP 86 4,094 1,906 4,000 0.40 1,868 ESP Gauge NB/NC/OA Avera a 1,649 21. All tests 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 my know ledge. Signature Title Reserwir Engineer Printed Name Jason Ewing Date 3/17/2017 Section 3 Sag River Oil Pool List of Exhibits Reservoir Injection Report (Form 10-413) 3-A Reservoir Voidage Balance 3-B Static Pressure Data (Form 10-412) 3-C Sag River Oil Pool Waterflood Project Summary Exhibit 3-A shows a monthly breakdown of production and injection data for the report period. A Participating Area for the Sag was approved in 2005. During 2016, two new Sag wells, MPC - 15 and MPS -90 were completed in July and November, respectively, bringing the field total to 4 production, and no active injection wells. There was no production from the reservoir in most of 1999 and the entire year of 2000 because it was not economical to repair the failed ESPs. At the end of 2000, one well (MPC -23) was converted to a jet pump completion. In 2001, one well (MPF -33A) was side-tracked and completed with a jet pump completion and another well (MPF -73A) was deepened from an idle Kuparuk well into the Sag River reservoir as an injector. One producing well (MPC -23) was shut in for integrity reasons in 2002 and the injection well (MPF -73A) was changed to water service only in 2006 due to tubing to inner annulus communication on gas injection. MPK-33 was cycled between Kuparuk and Sag production throughout 2016, and both new Sag wells, MPC -15 and MPS -90 were completed with fracture stimulation treatments. The Sag River Pool oil production averaged 423 STBD (average GOR of 1,240 SCF/BBL), and water production averaged 140 STBD in 2016. Cumulative production through the end of 2016 is 3.95 MMSTB of oil, 2.96 BSCF of gas, and 2.46 MMSTB of water. The average Sag production rate in 2015 was 410 STBD. The significant decrease in 2016 was likely due to flush production present in 2015 in MPK-33 that tapered off in 2016. Exhibit 3-C presents the reservoir pressure data for the Sag River wells taken during 2016. Three pressure surveys were obtained. Exhibit 3-A Reservoir Voidage Balance Summary Sag River Pool January - December 2016 Production Rate Averages: Injection Rate Averages: Oil Water Gas Reservoir Water Gas Voidage Voidage Voidage Month Prod Rate Prod Rate Prod Rate Voidage Inj Rate Inj Rate Replacement Replacement Balance (stb/day) (stb/day) (mscf/day) (rbbl/day) (stb/day) (mscf/day) (rbbl/day) Ratio (rbbl/day) 1/31/2016 411 36 237 611 0 0 0 0.00 -611 2/29/2016 398 114 409 777 0 0 0 0.00 -777 3/31/2016 322 199 346 747 0 0 0 0.00 -747 4/30/2016 330 172 447 789 0 0 0 0.00 -789 5/31/2016 246 138 247 546 0 0 0 0.00 -546 6/30/2016 158 89 131 334 0 0 0 0.00 -334 7/31/2016 186 82 126 353 0 0 0 0.00 -353 8/31/2016 192 59 141 344 0 0 0 0.00 -344 9/30/2016 474 210 399 947 0 0 0 0.00 -947 10/31/2016 287 198 232 640 0 0 0 0.00 -640 11/30/2016 796 128 829 1,458 0 0 0 0.00 -1,458 12/31/2016 1,280 258 2,740 3,251 0 0 0 0.00 -3,251 Cumulative Production: Cumulative Injection: Oil Water Gas Reservoir Water Gas Voidage Voidage Voidage Month Cumulative Cumulative Cumulative Voidage Cumulative Cumulative Replacement Replacement Balance (stb) (stb) (mscf) (rbbl) (stb/day) (mscf/day) (rbbl) Ratio (rbbl) 1/31/2016 12,729 1,105 7,345 18,948 0 0 0 0.00 -18,948 2/29/2016 11,554 3,306 11,868 22,542 0 0 0 0.00 -22,542 3/31/2016 9,992 6,171 10,715 23,147 0 0 0 0.00 -23,147 4/30/2016 9,910 5,162 13,409 23,667 0 0 0 0.00 -23,667 5/31/2016 7,630 4,269 7,671 16,913 0 0 0 0.00 -16,913 6/30/2016 4,748 2,660 3,926 10,014 0 0 0 0.00 -10,014 7/31/2016 5,765 2,537 3,913 10,934 0 0 0 0.00 -10,934 8/31/2016 5,942 1,815 4,360 10,652 0 0 0 0.00 -10,652 9/30/2016 14,220 6,286 11,976 28,409 0 0 0 0.00 -28,409 10/31/2016 8,901 6,132 7,198 19,843 0 0 0 0.00 -19,843 11/30/2016 23,893 3,825 24,881 43,750 0 0 0 0.00 -43,750 12/31/2016 39,669 8,012 84,926 100,795 0 0 0 0.00 -100,795 Average: stb/d stb/d mscf/d rb/d stb/d mscf/d rb/d rb/d 2016 423 140 524 900 0 0 0 0.00 -900 Cumulative: stb stb mscf rb stb mscf rb rb 31 -Dec -16 154,953 51,280 192,188 356,863 0 0 0 0.00 -356,863 Exhibit 3-B Form 10-412 Rao River Pnnl STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator. Hikorp Alaska, LLC. 2. Address: 3800 Centerpoint Dr. Anchorage, AK99516 3. Unit or Lease Name: Mine Point 4. Feld and Pool: Sag River at Pool 5. Datum Reference: 875V SS 6. Oil Gravity: AA - 34 7. Gas Gravity: Air = .65 8. Well Name and Number: 9. AR Number 5D-XXX-XXXXX-XX- XX 10. Oil (0) or Gas 11. AOGCC (G) Pool Code 12. Final Test [Ate 13. Shut -In Time, 14. Press. 15. B.H. Temp. 16. Depth Tool 17. Final Fours Surv. Type lVDss Observed (see Pressure at instructions Tool Depth for codes) 18. Datum TVDss (input) 19. Pressure Gradient, psvft. 20. Pressure at Comments Datum (call Zone Code MPK-03 50-029-22729-00-00 PROD 525150 1/5/2016 120 SBHP 220 8,750 2,654 8,750 0.310 2,654 Slickline Gauges SagA/B MPC -15A 50-029-21358-01-00 PROD 525150 7/14/2016 New Well SBHP 228 8,750 4,057 8,750 0.310 4,057 Slickline Gauges Sag A/B MPC -15A 50-029-21358-01-00 PROD 525150 10/15/2016 92 SBHP 160 6,613 1,585 8,750 0.435 2,515 Slickline Gauges SagA/B MPS -90 50-029-23276-00-00 PROD 525150 11/10/2016 New Well SBHP 230 8,507 4,150 8,750 0.310 4,225 DH Press Gauge Sag A/B Avera a 3,363 21. All tests 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 mty know ledge. Signature Tile Reserwir Engineer Printed Name Anthony D. fvkOonkey Date 3/16/2017 Section 4 Production/Injection Well Surveillance List of Exhibits Milne Point Kuparuk Surveillance 1/1/2016 — 12/31/2016 4-A Milne Point Schrader Surveillance 1/1/2016 — 12/31/2016 4-B Production/Injection Well Surveillance As per Conservation Order 205 (Kuparuk River Oil Pool) and Order 477 (Schrader Bluff Oil Pool), the Milne Point Operator runs injection surveys on at least one third of the existing online multiple zone injectors annually and on new multiple zone injectors. In 2012 AOGCC verified that for Milne Schrader these surveys would only apply to online unregulated injectors. There were 27 existing Kuparuk multi -zone injectors in 2016. Nine injection surveys were obtained in 2016. All of these injection surveys were performed in multi -zone injectors. There were 18 existing unregulated Schrader Bluff multi -zone injectors in 2016, seven of which were shut in all year. Injection surveys were run in 4 of the 11 online unregulated Schrader Bluff multi- zone injectors. Since the majority of producers at Milne Point are completed with ESPs or jet pumps which preclude logging below the pump while on production, few production logs are run. No production logs were run in Kuparuk or Schrader wells in 2016. Exhibits 5-A & 5-13 are a summary of the Milne Point field well surveillance performed in 2016 on both Schrader and Kuparuk Pools. Exhibit 4-A Production/Infection 2016 Loaainv & Surveillance Kuparuk River Pool Sw Name Reservoir Well Type Rec Date Log Type Field Analysis Final Determination Inconclusive Data Schmoo in well caused spinners to plug. MPF -95 KUP WINJ 6/21/2016 STP/IPROF Indications that majority of injection in C & A3 Injection in C & A3 -sands sands (based on temp (qualitative analysis) log), 9% BIC sands 91 % A2/A3 sands 10% BIC sands 0%A1 sand MPL-16A KUP WINJ 6/22/2016 STP/IPROF 75%A2/A3 sands Did not see any 15%A1 sand conclusive evidence of injection in Al 65% C 65% B sand 35% A3/A2/A1 17%A3 sand No breaks between A- MPF -62 KUP WINJ 6/22/2016 STP/IPROF 0% A2 sand sand perforation intervals 17%A1 sand - unable to differentiate split between sands Inconclusive Data 7% C sand Schmoo in well caused 70% B sand spinners to plug. MPL-08 KUP WINJ 6/22/2016 STP/IPROF 20%A3 sand Indications that majority 0% A2 sand of injection in A 1-A3 3%A1 sand sands (based on temp log). 35% BIC sands 36% BIC sands MPC -36 KUP WINJ 8/3/2016 STP/IPROF 65%A2/A3 sands 64%A2/A3 sands 12%C sand 12%C sand MPC -42 KUP WINJ 8/4/2016 STP/IPROF 40%A3 sand 40%A3 sand 48% A2 sand 48% A2 sand 69%C sand 69%C sand MPE-07 KUP WINJ 10/11/2016 STP/IPROF 31%B sand 31%B sand 10% C sand 64%A3 sand 10%C sand MPC -39 KUP WINJ 10/20/2016 STP/IPROF 26%A2 sand 90%A3/A2 sands Used stop counts for split determination. Exhibit 4-13 Production/Injection 2016 Logging & Surveillance Schrader Bluff Pool SN Name Reservoir Well Type Rec Date Log Type Feld Analysis Fnal Determination 90% NB Sand10%OA Majority of fluid is going sand into GLM#/6 (NB Sand) M PJ -1 8 SBL WI NJ 11/17/2016 STP/ I PROF Majority of fluid is going 12% ND Sand into OAsandswith —12% 88% OA sand M PE -1 2 SBL WI NJ 10/23/2016 STP/ IPROF into ND Perfs 0%NBSand -I/2 of fluid going into 40%NBSand NB sands and other 1/ 2 of fluid in OAI OB g into 5%N(7 ND Sands MP -G01 SBL 1M NJ 6/19/2016 STP/ I PROF sands 55% OA/ OB Sands OA/ OB taking majority of 15% NB Sand fluid w/ NB Sands taking M P -J15 SBL 1NI NJ 9/2/2016 STP/ I PFUF 10-20%of fluid. 85%OA/ OB Sands Section 5 Shut in Well Status List of Exhibits Milne Point Shut in Well Status 1/1/2016 — 12/31/2016 5-A Exhibit 6-A Well Test Summary Milne Point Unit Section 6 Milne Point Well Testing with ASRC Unit 5 and Weatherford Gen 2 (VSRD) Summary List of Exhibits Summary of Milne Point Welltesting and Gen 2 (VSRD) Installations 6-A Well Test Allocation Factors M. Well Test Frequency 6-C Exhibit 6-A Well Test Summary Milne Point Unit Milne Point Well Testing Milne Point primarily utilizes on -pad separators for well testing. The pad separators at C, E, F, H, K and L -Pads employ volumetric, vessel -based gas-liquid separation. Separators at I and J -Pads employ centrifugal separation, while the separators at B, G, and S -Pads are multiphase meters, aka Alpha "VSRD" (Venturi, Sonar, Red Eye, and Densitometer). Thus, a variety of metering technologies are employed across Milne Point including: - Turbine positive -displacement, Micro Motion coriolis meters or Venturi/Sonar meters for liquid flow rate. - Phase Dynamics or Red Eye watercut meters on the separator liquid legs. - Turbine, Micro Motion coriolis meters or densitometers for gas flow rate. Wells are automatically routed into test on a rolling schedule, such that a well is always being tested on every pad with in-place testing facilities. Test duration is at least 6 hours, not including the necessary purge time to flush the lines and vessel. Exhibit 6-A provides information on the well tests conducted for consideration in production allocation during 2016. The services of portable test separators, provided by contractors ASRC and PTS, are utilized on an ad-hoc basis whenever there are concerns about individual pad separators or to verify readings from the fixed pad separators. As part of the continuing effort to improve performance in test separation systems, Milne Point is also employing the use of new types of multi -phase meters, as well as proper use of chemical additives such as emulsion breaker. At Milne Point, Weatherford multiphase meters, aka Alpha VSRD (Venturi, Sonar, Red Eye, Densitometer), were installed at G and S -Pads in 2009 and 2011 respectively. For the 2016 year, all G -Pad and S -Pad wells were allocated from the VSRD well tests. The VSRD meter at G -Pad has not been maintenance free. The MVT (Multi -Variable Transmitter), i.e. primary bulk fluids meter, and Red Eye, i.e. water cut meter, both failed and were replaced in February 2016. The sonar has been selected as the primary bulk fluids meter for most of 2016. Milne Point operators review well test quality on a daily basis and work with engineers and field technicians to get meters fixed when needed. During a scheduled 2011 inspection of B -Pad's test separator, internal corrosion was found. The separator was taken offline in June 2011 and the pad relied on ASRC portable tests for production allocation. Following the success of the VSRD's at both G & S -pads, work began in 2013 to install a VSRD multiphase meter on B -Pad. Following installation, there were several VSRD component failures over the next several years, which were largely attributed to the constant `slugging' from B -pad wells (B -pad is all gas lift and tends to produce the highest GOR out of any other pad at MPU). The slugging caused vibrational damage to the systems, primarily the RedEye watercut meter. After several VSRD component redesigns, in 2016 the decision was made to return to a traditional test separator. The unit that was abandoned in 2011 was repaired Exhibit 6-A Well Test Summary Milne Point Unit in 2016 and returned to service in March 2017. Test separator performance appears to be improved over the VSRD and allocations are expected to begin by April 2017. I and J pads currently use Kvaerner -Hydro cyclone separators. The separators have had issues with accurate testing as a result of oversized gas and gross fluid Coriolis meters. The gas meters were downsized and control valves rebuilt during 2016. This enabled many of the wells to be allocated with the permanent separators. Portable Test Units (ASRC and PTS) were utilized to assess permanent unit performance and for some well test allocations in 2016. ASRC Unit #5 Operational and Performance Issues ASRC Unit 5 is a portable well test unit that uses FMC Technologies Enhanced Multiphase System (EMS) to measure well production. The EMS is comprised of a venturi meter and capacitance and conductance electrodes coupled with a cyclonic pre -separator allowing partial separation and metering in high gas volume fraction wells. The unit was used at the Milne Point Field throughout 2008 under temporary AOGCC approval and approved for permanent use at Milne Point on December 30, 2008. ASRC Unit 5 underwent a trial period in early 2008 where piggy back testing was conducted with an established gravity test separator, ASRC Unit 1. The resulting test data from Unit 5 was compared to Unit 1 tests, manual fluid samples and historic field well tests. In this way, it was determined that Unit 5 measures total liquid volume within f10% and water cut with an uncertainty band of ±2.5 to 5%. Following the trial period, Unit 5 was accepted as a full time portable test separator at Milne Point, and it began autonomous testing across the field. Work is ongoing with ASRC to continue to improve the accuracy of Unit 5 with a focus on metering gross fluid rates, water cuts and gas volumes. Exhibit 6-B WeII Test Frequency- By Pad/OiI Pool Milne Point Unit 6B - Well Test allocation factors by month Prod alloc Oil Factor Gas Factor Water Factor 01/31/2016 0.848 0.848 1.075 02129/2016 0.877 0.877 1.101 03/31/2016 0.883 0.883 1.163 04/30/2016 0.867 0.867 1.163 05/31/2016 0.844 0.844 1.120 06/30/2016 0.839 0.839 1.116 07/31/2016 0.860 0.860 1.209 08/31/2016 0.829 0.829 1.199 09/30/2016 0.812 0.812 1.219 10/31/2016 0.816 0.816 1.213 11/30/2016 0.861 0.861 1.145 12/31/2016 0.859 0.859 1.053 By Formation/Pool Name Avg. MPU Kuparuk PA (MLNE) Tests 2016 Well tests by Per Pad Name Month MPU Pad B General 14.9 MPU Pad C General 12.8 MPU Pad E General 13.2 MPU Pad F General 4.8 MPU Pad H General 10.2 MPU Pad I General 8.3 MPU Pad J General 13.8 MPU Pad K General 18.8 MPU Pad L General 14.9 MPU Pad S General 9.2 By Formation/Pool Name Avg. Tests Per Month MPU Kuparuk PA (MLNE) 12.57 MPU Sag ADL 25516 (MP17) 11.42 MPU Schrader Bluff PA (SCHR) 10.33 Exhibit 6-B Well Test Frequency — By Well Kuparuk Oil Pool By wellbore 1Mef1 Mame Formation Name Days On Prod Total Tests Avg. Teststmo NIP B-09 MPU Ktgkv +k PA (A&NE) aw 73 6,18 MIP B•10 MPU Kupart* PA (A&NE) 364 74 6.20 MP B-15 MPU Kupm* PA (MLNE) 366 68 5-67 MP B-16 MPU KupanA PA (MLNE) 354 79 6.62 MP 8-21 MPU Kgk-v t PA (MLNE) YJ6 78 6.50 MP 5-22A MPU Ktparuk PA (ACNE) 364 75 6,27 AAP B•28 MPU Schrader Buff PA (SCHR) 331 90 8,29 MP C•01 MPU KupwA PA (MLNE) 362 79 6.66 Irk C-03 MPU Kupatuk PA (MLME) 361 77 6.51 MP C-04 MPU Kuparuk PA (MLNE) 362 63 5.31 MP C -05A MPU Kupawk PA (A&NE) 142 27 5.80 UP C-07 MPU Ktpm* PA (A&NE) 362 72 6.07 MP C409 MPU Kuparuk PA (t&NE) 366 67 5.58 MP C-13 NPU Kt%muk PA (MLNE) 3% 67 5.58 MP C-14 MPU KWapA PA (MI -NE) 366 6? 5.(38 Ate' C -15A MPU Sag ADL 25.,516 QW17) 351 29 2.52 Alm C-21 MPU KupanA PA (MLNE) 357 73 6.24 MP C -22A MPU Kink PA (MLNE) 314 106 10.30 MP C-23 MPU Sag ADL 47434 (UP16) 366 43 7.75 MP C -24A MPU Kuparuk PA (#&NE) 362 88 7.41 MP C-26 MPU KupmA PA (ACNE) 365 84 7,02 Ate' C-40 MPU Kupam* PA (I.NE) 3% 80 667 MP C-43 MPU KupanA PA (MLNE) 366 85 7.08 MP E-04 MPU KupanA PA (ANNE) 329 51 4.73 MP E -M MPU KupanA PA (MNE) 3;A 56 4.66 MP E409 MPU Kupan* PA (A&NE) 358 48 392 MP E-10 MPU Kup c PA (MLNE) 85 13 4.66 MP E-11 MPU KuAmA PA (MLNE) 366 64 5.33 MP E -14A MPU Kupaatk PA (MLNE) V)9 16 4A8 MP E-18 MPU KWkvt t PA (MLNE) 358 56 4.77 MP E-19 MPU Kupam* PA (MLNE) 366 46 3.83 MP E -20A MPU Schrader Bluff PA (SCHR) 212 51 7,34 MP E-22 MPU Kupam* PA (MLNE) 364 70 5.87 LIP E -24A MPU Schtadw Bluff PA (SCHR) 353 63 5.29 LIP E-31 MPU Schrader Bluff PA (SCHR) 366 53 4.42 NIP E-32 MPU Schrader Biu#f PA (SCHR) ,b7a 56 4.71 Mp F-01 MPU Kupart* PA (A&NE) 366 50 417 Exhibit 6-A Well Test Summary Milne Point Unit Days On Prod Total Tests By wellbore Well Name Formation Name MP F-06 MPU Kuparuk PA (MLNE) MP F-09 MPU Kuparuk PA (MLNE) MP F-14 MPU Kuparuk PA (MLNE) MP F-18 MPU Kuparuk PA (MLNE) MP F-22 MPU Kuparuk PA (MLNE) MP F-25 MPU Kupauk PA (MLNE) MP F-29 MPU Kuparuk PA (MLNE) MP F-34 MPU Kuparuk PA (MLNE) MP F-37 MPU Kupwuk PA (MLNE) MP F-38 MPU Kuparuk PA (MLNE) MP F45 MPU Kuparuk PA (MLNE) MP F-50 MPU Kuparuk PA (MLNE) MP F -53A MPU Kuparuk PA (MLNE) MP F-54 MPU Kuparuk PA (MLNE) MP F -57A MPU Kuparuk PA (MLNE) MP F-61 MPU Kuparuk PA (MLNE) MP F-65 MPU Kuparuk PA (MLNE) MP F -66A MPU Kuparuk PA (MLNE) MP F-69 MPU Kuparuk PA (MLNE) MP F -79A MPU Kuparuk PA (MLNE) MP F-79 MPU Kuparuk PA (MLNE) MP F-81 MPU Kuparuk PA (MLNE) MP F-86 MPU Kuparuk PA (MLNE) MP F -87A MPU Kuparuk PA (MLNE) MP F-93 MPU Kuparuk PA (MLNE) MP F-94 MPU Kuparuk PA (MLNE) MP F-96 MPU Kuparuk PA (MLNE) MP G-02 MPU Schrader Bluff PA (SCHR) MP G-08 A MPU Schrader Bluff PA (SCHR) MP G-14 MPU Schrader Bluff PA (SCHR) MP G-16 MPU Schrader Bluff PA (SCHR) MP G-18 MPU Schrader Bluff PA (SCHR) MP H-05 MPU Kuparuk PA (MLNE) MP H-088 MPU Schrader Bluff PA (SCHR) MP H-16 MPU Schrader Blull PA (SCHR) MP H-18 MPU Schrader Bluff PA (SCHR) MP 1-03 MPU Schrader Bluff PA (SCHR) Milne Point Unit Days On Prod Total Tests Avg. Tests/mo 356 57 475 366 55 458 123 13 3.22 366 55 4.58 364 55 4.61 300 46 4.68 83 11 4.04 311 44 4.32 366 51 425 149 20 409 350 4$ 4,18 365 50 4.17 354 48 4.14 3A 44 4.41 350 44 3.83 3E6 56 4,67 366 % 4.58 366 54 4.54 366 53 4.42 366 53 442 3% 53 442 312 45 440 364 43 3.60 363 45 3.78 366 49 4.(A 290 4' 431 356 49 408 294 93 9.65 355 96 8.02 356 124 10.33 3 ,4 116 9.72 1% 104 8.67 355 62 5.18 366 45 3.75 300 alb 3.05 210 33 5.03 248 59 7,26 Exhibit 6-A Well Test Summary Milne Point Unit By wellbore Wall Name Formation Name Days On Prod Total Tests Avg. Tests/mo MP I.04A MPU Schrader Bluff PA (SCHR) 205 4B 7.14 MP 1.07 MPU Schrader Bluff PA (SCHR) 54 12 6-78 MP 1-11 MPU Schrader Bluff PA (SCHR) 364 86 721 MP 1-12 MPU Schrader Biuif PA (SCHR) 162 44 8.28 MP 1-14 MPU Schrader Bluff PA (SCHR) 364 93 7.79 MP 1-15 MPU Schrader Bluff PA (SCHR) 355 87 7.47 MP 1-17 MPU Schrader Bluff PA (SCHR) 365 95 794 MP 1.19 MPU Schrader Bluff PA (SCHR) 359 86 7.31 MP J -01A MPU Schrader Bluff PA (SCHR) 237 44 5.66 MP J-03 MPU Schrader Bluff PA (SCHR) 365 76 6.35 MP J-04 MPU Schrader Bluff PA (SCHR) 113 30 8.10 MP J-06 MPU Kuparuk PA (MLNE) 364 68 5,70 MP J -08A MPU Schrader Bluff PA (SCHR) 363 71 5.97 MP J -09A MPU Schrader Bluff PA (SCHR) 358 67 5.71 MP J-10 MPU Kuparuk PA (MLNE) 364 63 5.28 MP J-25 MPU Schrader Bluff PA (SCHR) 362 65 5.48 MP J-26 MPU Schrader Bluff PA (SCHR) 366 63 5..25 MP J-27 MPU Schrader Bluff PA (SCHR) 335 45 4.10 MP J-28 MPU Schrader Bluff PA (SCHR) 337 34 3.08 MP K-05 MPU Kuparuk PA (MLNE) 364 150 12.57 MP K-17 MPU Kuparuk PA (MLNE) 366 63 5.25 MP K-30 MPU KWaruk PA (MLNE) 248 78 9,59 MP K-33 MPU Kuparuk PA (MLNE) 75 14 5.69 MP K-33 MPU SaglUnd ADL 375132 (MP03) 173 62 10.93 MP K-38 MPU Kuparuk PA (MLNE) 350 114 9.93 MP K-44 MPU Kuparuk PA (MLNE) 320 91 8.67 MP L-OiA MPU Kuparuk PA (MLNE) 25 4 4.88 MP L -02A MPU Kuparuk PA (MLNE) 366 81 6.75 MP L-03 MPU Kupafuk PA (MLNE) 316 70 6.76 MP L-04 MPU Kuparuk PA (MLNE) 366 76 6.50 MP L-05 MPU Kuparuk PA (MLNE) 366 81 675 MP L-07 MPU Kuparuk PA (MLNE) 366 73 608 MP L-11 MPU Kuparuk PA (MLNE) 366 83 6.92 MP L-12 MPU Kuparuk PA (L"E) 366 70 5.83 MP L-13 MPU Kuparuk PA (MLNE) 347 62 5.45 MP L-14 MPU Kuparuk PA (MLNE) 365, 41 3.43 MP L-20 MPU Kuparuk PA (MLNE) 364 71 595 Exhibit 6-A Well Test Summary Milne Point Unit Days On Prod Total Tests By wellbore Well Namo Formation Name MP L-25 MPU Kuparuk PA (MLNE) MP L -28A MPU Kuparuk PA (MLNE) MP L-29 MPU Kuparuk PA (MLNE) MP L-36 MPU Kuparuk PA (MLNE) MP L-40 MPU Kuparuk PA (MLNE) MP L43 MPU Kuparuk PA (MLNE) MP L46 MPU Schrader BiLiff PA (SCHR) IVIP L-47 MPU Schrader Bluff PA (SCHR) MP S-05 MPU Schrader Bluff PA (SCHR) MP S-08 MPU Schrader Bluff PA (SCHR) MP 8-12 MPU Schrader Bluff PA (SCHR) MP S-17 MPU Schrader Bluff PA (SCHR) MP S-23 MPU Schrader Bluff PA (SCHR) MP S-25 MPU Schrader Bluff PA (SCHR) MP S-27 MPU Schrader Bluff PA (SCHR) MP 8-28 MPU Schrader Bluff PA (SCHR) MP S-35 MPU Schrader Bluff PA (SCHR) MP S-90 MPU Sag ADL 380109 (MP18) Milne Point Unit Days On Prod Total Tests Avg. Tests/mo 363 77 6,47 366 72 6,00 366 71 5.92 335 55 5.01 366 72 6.00 347 60 527 293 60 6,25 364 73 6.12 341 bf 5.99 90 18 6.10 3111 89 7,52 363 84 7.06 364 89 7.46 249 64 7.84 247 65 8.03 88 7,39 352 88 7,63 344 13 1.15 Section 7 Annual Review of Plan of Development List of Exhibits MPU Annual Plan of Development and Operations 7-A Exhibit 7-A Review of Annual Plan of Development and Operations Milne Point Unit L FIELD OVERVIEW The MPU consists of the Kuparuk Reservoir in the Kuparuk Participating Area, the Schrader Bluff Reservoir in the Schrader Bluff Participating Area, the Sag River Reservoir in the Sag River Participating Area, C-23 Tract Operations, K-33 Tract Operations, and the Ugnu MPS - 37, MPS -39, MPS -41 and MPS -43 Tract Operations. H. PLAN REVIEW A. Drilling Program Hilcorp completed ten drill wells in 2016: • L-47 Lateral Producer targeting Schrader OA Lower Lobe. • B-29 Lateral Injector targeting Schrader ND. • B-28 Lateral Producer targeting Schrader ND. • K-44 Producer targeting Kuparuk CB sands. • J -23A Sidetrack Lateral Injector targeting Schrader NB. • J-27 Lateral Producer targeting Schrader NB. • J-28 Lateral Producer targeting Schrader NB. • C -15A Sidetrack Producer targeting Sag River. • L-50 Lateral Injector targeting Schrader OA Lower Lobe • J -24A Sidetrack Lateral Injector targeting Schrader NB. Hilcorp postponed two other lateral drilling projects (L-47 and L-50), both parting production from the Schrader OA Lower Lobe. B. Workover Program Hilcorp completed the following well projects: • Prince Creek 0 2 Water source well repairs 0 1 Convert to water source well • Ugnu o 1 Water source well repair • Schrader Bluff 0 6 ESP Change -outs 0 4 Jet Pump Repair 0 1 Plug & Abandonments 0 1 Convert to Jet Pump 0 Kuparuk Exhibit 7-A Review of Annual Plan of Development and Operations Milne Point Unit 0 13 ESP Change -outs 0 1 New ESP Install 0 1 Convert to Jet Pump • Sag River o 1 Convert to Jet Pump C. Major Facility Projects Key activities included: • Smart Pig In -line -Inspections (ILI) were completed for SKE production pipeline, Tract -14 14" Production, B Pad produced water pipeline and S produced water pipeline • B -Pad infrastructure upgrades to support drill wells • Rig shore power tie-ins for B -Pad, J -Pad, C -Pad, K -Pad, D -Pad • Drive upgrade J-27 • Drive upgrade J-28 • Fire & Gas Upgrades —Fire & Gas equipment was installed at B, C, F, G, L Pads to address obsolescence and compliance issues. • B Pad Gravel Expansion — was completed to accommodate well B-34 G& I in early December 2016. • Camp Repairs — repairs were completed to the roof, HVAC, and camp freezer. • Camp Fire Suppression - The camp sprinkler suppression system was commissioning in 2016. • Camp Expansion — additional rooms were opened up after upgrades were made to the Northwest Wing • ORT -B, Diesel Tank, and Firewater Tank inspection — internal inspections and repairs were completed on the tanks during 2016. M. 2017 PLAN OF DEVELOPMENT AND OPERATIONS A. Proposed Drilling Program During the 2017 calendar year, Hilcorp anticipates drilling up to thirteen (13) new wells, including: • 1 x B pad (Ugnu: 1 G&I) • 2 x B pad (Schrader NC: 1 prod + 1 inj) • 1 x B pad (Sag River: 1 prod) • 1 x C pad (Sag River: 1 prod) • 3 x C pad (Kuparuk: 2 prod + 1 inj) • 1 x L pad (Sag River: 1 prod) Exhibit 7-A Review of Annual Plan of Development and Operations Milne Point Unit • 4 x L Pad (Schrader NB: 2 prod + 2 Inj) Two of the 13 proposed wells have been drilled as of March 2017 and one is currently online (13- 32 Schrader NC: 2,100 bopd, 300 mcfd, 140 bwpd). B. Proposed Workover Program During the 2017 calendar year, Hilcorp anticipates completing up to 20 well workovers with the ASR1 rig and 6 well workovers with the Doyon 14. During 2016 (YTD), we have completed 32 well workovers (25 with the ASRI rig, 5 with Doyon 14 and 2 with the Nordic 3 rig). C. Major Facility Projects Key facility projects anticipated to be undertaken during 2017 include: • Installing pig traps to split J Pad produced water pipeline into two segments to allow for inline inspection (currently dual diameter). • HVAC upgrade for G&I • F -Pad PLC upgrade (to support upcoming drill wells) • L -Pad, E -Pad infrastructure upgrades to support drill wells • Rig Shore power for E -Pad, repairs for F -Pad • Fire Gas Upgrades — at Mod61/56/57/69/54/07/08 to address obsolescence and compliance issues. • Smart Pig In -line -Inspections (ILI) — were completed for S/CB production pipeline, F&L production pipeline, CFP to J produced water pipeline. • Major Overhaul - Swap LM2500 turbine and send out for major Overhaul • E Pad Expansion — expand the pad to accommodate from 5 new well • L Pad Expansion — expand the pad to accommodate from 8 new well • Moose Pad — during 2017, a new road and pad will be installed, and engineering & fabrication activities of pipeline and facilities will be completed.