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Home My WebLink About2016 Northstar Oil PoolH Hilcorp Alaska, LLC March 30th, 2016 Cathy Foerster, Chairman Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 RECEIVE® MAR 3 12017 1 Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 100 Anchorage, AK 99503 Phone: 907/777-8377 Fax: 907/777-8580 ckanyer@hilcorp.com RE: NORTHSTAR UNIT, NORTHSTAR FIELD, NORTHSTAR OIL POOL, STATE OF ALASKA, 2016 ANNUAL RESERVOIR REVIEW Dear Commissioner Foerster: In accordance with Conservation Order No. 458A, Hilcorp Alaska, LLC ("Hilcorp"), as Operator, hereby submits for your review the following Annual Reservoir Review for the Northstar Field. This is the 16th Annual Reservoir Review and corresponds to events during the 2016 calendar year. Note that the Northstar Field has been on production since November 2001. A. Progress of Enhanced Recovery Project and Reservoir Management Summary During 2016, no new wells were drilled or sidetracked in the Northstar Unit. Therefore the locations of all the wells in the Northstar Unit have remained unchanged. Production and injection statistics are summarized in Table 1. Average daily oil production from the Northstar field was 7,167 bopd and average daily gas injection was 485.8 mmscfpd. The reservoirvoidage balance values reported do not include oil production from Outside the Northstar Oil Pool. This includes production from satellite well NS34A or Kuparuk zone production from wells NS -08. Also Kuparuk production from NS -18 beginning August 2016. During 2016, gas injection was calculated to be 27,349 thousand -reservoir barrels (MRB) more than reservoir voidage. At year end, the reservoir overall cumulative voidage replacement ratio was 1.030. The average of reservoir pressure control for 2016 was 5,116 psia. Hilcorp became the official Operator of the Northstar Field effective November 18, 2014. As a result, the historic reservoir simulation model developed by the previous operator will no longer will be utilized. Hilcorp will continue working towards an Ivishak reservoir simulation model for enhanced recovery optimization during 2017. Table 1: NORTHSTAR FIELD 2016 OVERVIEW STATISTICAL SUMMARY WELL STATISTICS Produced Fluids As of 12/3112016 Full year (1) As of Dec -16 (2) Producers 16 15 Injectors 9 8 NOTES: (1) Nell count data reflects ONLY those wells which contributed to production/injection during the respective year (2) Active wells a5 of December 2016 Pilot/Purge PRODUCTION/INJECTION STATISTICS Cumulative Start - Up through Production 2016 12/31/16 Oil (BBL) 2,615,852 167,896,653 Gas (MCF) 177,321,634 2,207,516,565 Water (BBL) 3,578,442 61,322,589 Injection Water (BBL) into NS10 & NS32 Disposal Well 7,368,499 65,727,303 Gas (MCF) 191,861,111 2,430,990,804 Balance (excludes satellite well NS -34A and NS06 & NS -18 Kup oil Production) Cum, Cum Production (MRS) 484,991 1,601,803 Cum Injection (MRB) 512,340 1,649,853 Over/Under(MRB) 27,349 48,050 DAILY AVERAGE RATE DATA 2016 MRB Gas, MRB Production MRB MRB Oil, BOPD 7,147 MRB Gas, MCF/D 484,485 11,240 Water, BWPD 9,777 11,853 Injection 11,647 702 Water, BWPD 20,133 1,531,948 Gas, MCFPD 524,211 40,934 AVERAGE RESERVOIR PRESSURE 572 10,599 Average of surreys obtained in 2016 5,116 psia B. Voida¢e Balance by Month of Produced Fluid and Injected Fluids - 2016 Page 2 Produced Fluids Injected Fluids Net ne ion (Injection - Production) Pilot/Purge Total Formation /Flare & Tatal Year Cum since Net Year Cum since Water, Vddage, Year Cum since Gas, Impon Injection, Cum, stall -up, Injection, Cum, start -u1, Month Oil, MRB Free Gas, MRB MRB MRB Cum, MRB sta t -M, MRB MRB Gas, MRB MRB MRB MRB MRB MRB MRB Jan -2016 613 11,240 296 11,853 11,853 1,491,014 11,647 702 12,349 12,349 1,531,948 496 496 40,934 Feb -2016 572 10,599 286 11,170 23,023 1,502,184 10,978 654 11,632 231981 1,543,580 462 957 41,395 Mar -2016 619 11,552 352 12,172 35,195 1,514,356 11,963 712 12,675 3616% 115561255 503 1,460 41,899 Apr -2016 532 10,431 316 1Q96P 46,157 1,525,318 10,783 652 11,435 48,091 1,567,690 473 1,934 42,372 May -2016 489 10,507 320 10,996 57,153 1,536,314 10,831 712 11,543 59,634 1,579,233 547 2,481 42,919 Jun -2016 414 9,104 326 9,518 6,671 1,545,832 9,376 614 9,992 69,626 1,599,225 474 2,955 43,393 Jul -2016 322 ,398 248 6,721 73,392 1,552,553 6,613 709 7,322 76,948 1,59,547 601 3,556 43,994 Aug -2016 433 9,450 343 9,883 83,275 1,562,438 9,737 935 10,672 87,620 1,607,219 789 4,345 44,783 Sep -2016 429 9,249 328 9,678 92,952 1,572,113 9,533 972 10,505 98,125 1,617,724 828 5,173 45,611 Oct -2016 418 8,389 312 8,808 101,760 1,580,921 8,667 1,085 9,752 107,876 1,627,476 944 6,117 4,555 Nov2016 470 8,926 294 9,396 111,156 1,590,317 9,236 971 10,209 118,085 1,637,684 813 6,930 47,366 Dec -2016 547 Iovq 344 11,396 122,552 1,601,713 11,212 1,101 12,313 130,399 1,649,998 917 7,847 48,285 2016 Totals 5,856 116,6% 3,768 122,552 120,579 ,820 130,399 7,847 Page 2 C. Summary and Analysis of reservoir pressure surveys within the pool Static bottom hole pressures collected in 2016 are summarized below. These pressures have been included with the historical Ivishak reservoir pressure data and are graphically represented in the next figure. Page 3 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT N wso. uc ae9puamcmuo-aw Baa. u9um a. aMdlUMNs.1m NaNAm VM arum me,baONa'Allc�ewNvevr 5. mem Banm2 <uaarw 9m -n e. oev. L< aa�w 1.c.0a�- 91s e. wavxam..l0 Newer o. e1>I ewmsm O9,dda%k.W%lpc Nod�a 1a rloa ss emacw n. a6wx Poaeme t"..T.tww 1:. vn. l.9a+mw0 evuau rep- 8adm,1N959 10.aw rm mn 1s. aa -n 16.91me r Neta sun. rlq tw9 �1N�mmvs. meat 118A,a rmp t,xgnree ryas 1o. rum m Ctemvea wnaa.m rw,m9m w. mem Npab Ow9 al.,+ova GemkK9utt aBamuee mem;al9e9 N$-06 50029230880000 O 590150 Mu uk 6.82411.861' 821/16 56-6 SSW 1753 8.755 3.680 9.000 0.10 3.104 N5419 50028230520000 0 590100 I i Mk 11,x1.11,085 821116 386.2 $SIO+ 247.5 10.741 5,089 11.100 0.10 5.105 NS -13 50029230170000 O 590100 Nu;h9 11,655.11,095 529116 297.6 SBHP 247 10,139 5,092 11,100 0.10 5.130 NS1W 5002S=M1W 0 590100 Muh 1t,x9-11.092 829/16 246.3 SSW 253.8 11,013 5,122 11,100 810 5,131 NSIS 50029231020000 O 590100 MMak 10,916-11,M WM16 50.3 SSW 219.8 10.821 5.099 11,100 0.11 5,129 N$-16 50029231020000 1 O 1 590180 Kup 9F26• -9,0W &1816 88 M /m.2 8.601 3,123 9,000 0.10 x,423 N 18 50029231020000 0 590150 Kup6M1 S W4.0a6 925116 251 PB11 193.5 8,647 3.273 %000 810 1,339 NS -05 50029232400000 O 5901W NisSak t0.96N-11.020' 1021116 51.7 Saw Bad Gau9 11,041 5,086 11,100 0.11 5A94 Ns -0 50029230980000 O 590100 M k 11.035AMW 1021116 55.3 SOW Gau9 11,02] 5.09] 11,100 0.10 5,104 NS -1811 50029230860100 0 5901M Malek tt.98s.tl.ue' 1021.16 501 $BHP Gaup 11,005 SAM 11,1W 0.10 5138 NS.19 50029231MNO 0 WIN MhA 10.953'-11035 1115118 287.1 SSHP S6tl Ga 10898 5,085 1111W 0.10 5.106 N 7 5002923x10000 O S901m M k 11.111••-11.125 11W6 273.7 SBHP W Gouge 10,631 5,105 11,100 0.10 5.132 fmmpilf NdB Nat diO Kt9a•JTmeTJAte m08su2nartan Im 5ma9m lQRtlia tlN 1ty16 2a. u am �ewNO b.a �+. Daae w avamu mm m.+sKw.ma wm. �w�a<am.a�e a w nnw. a.e es w�w+m.a comm,mm 1,aM)mMy NEmatve9tiv'ueNw Oe eesa.y Aa.'s00e Sgimme ':.(Mn _ RInW Name Ctt'e xsger 700 Wa RaweTFtmw P.embr9.ID19 These pressures have been included with the historical Ivishak reservoir pressure data and are graphically represented in the next figure. Page 3 • NSN • NS07 z NWS t NS09 • NS12 + NS13 - NS14 NS15 • NS15 NSI? • NS19 % NS19 NS20 • N521 • NS22 + NS23 NS24 • NS25 NS27 • NS29 • NS31 • NS05 • N529 • N51f • N530 • NS334—•—Rverage PreWm 5250 5225 5 5200 a 0 5175 $ 5150 E 5125 5100 a 5075 N e 5050 d 05025 rc IcldrDl 4975 The data shows an increase of reservoir pressure during 2016. The average Northstar field reservoir pressure for 2016 is 5,116 psia, down 12 psia from the 2015 average. Please note that the reported reservoir pressure of the well NS -08 during 2016 and NS -18 after August 2016 are from the Kuparuk Reservoir. D. Results and Analysis of Production and Infection log surveys, tracer surveys, observation well surveys and any other special monitorin¢ One new Ivishak production profile was obtained in 2016 and summarized below. 1111111111! Well Name Well Type I Date Log Type Shublik D I I I I111111111111111111111111111111111111111111111111 Wshak Zone B NS -16A Producer 1 5/25/2016 1 S/TIP/Gradin 1 100 1 0 11111111111161 I I I I I I I I I I I I I11111111111111111111111111111111111111 lillll�ilO�l�ell�lllllllllllllll I1111I111111111111111111111111111' IIIIIII��I�''0!�►�Illllli��lll�llhllllllllllll�llllllllll�hllll,, Illllllillri IIIIlIIIIIIIR�.1111�11l1111lIll�iil1�11111111111.1111� Illlllllllli iillo��l��#�f ��i�li��l��I�E!I�Il�li!{��f11►11l11', IIIIIIIIIIIIIIIIII��ll�lilllllii�dlllii�i��11i1111111��.1119OIIli Illllllllllllllllliy�lll111111�111111111111i11111101O1811111111111 IIIIIIIIIIIIIIIIIIIIIIIIIIIl1111111111111111111111111111111111111 Illllllllllllllllllllllllllllllllllllllllllllllllllllllilllllllll Illlllllllllllllllllllllllllillllllllllllllllllllllllllllllllllll pig The data shows an increase of reservoir pressure during 2016. The average Northstar field reservoir pressure for 2016 is 5,116 psia, down 12 psia from the 2015 average. Please note that the reported reservoir pressure of the well NS -08 during 2016 and NS -18 after August 2016 are from the Kuparuk Reservoir. D. Results and Analysis of Production and Infection log surveys, tracer surveys, observation well surveys and any other special monitorin¢ One new Ivishak production profile was obtained in 2016 and summarized below. The gas tracer program, initiated in 2004, was concluded in 2008 and there are no further updates for this reporting period. E. Review of pool production allocation factors and issues over the prior year Theoretical production is calculated for each Northstar producing well on a daily basis. 2016 Production Allocation Method A well's theoretical production is calculated using metered field volumes and hours on production as follows: Page 4 Percentage of flow from/to intenel. Blank intends are not perforated. Well Name Well Type I Date Log Type Shublik D hishak INshak INshak Zone E Zone D Zone C3 Ivshak Zone C2 lushak Zone CI Wshak Zone B NS -16A Producer 1 5/25/2016 1 S/TIP/Gradin 1 100 1 0 The gas tracer program, initiated in 2004, was concluded in 2008 and there are no further updates for this reporting period. E. Review of pool production allocation factors and issues over the prior year Theoretical production is calculated for each Northstar producing well on a daily basis. 2016 Production Allocation Method A well's theoretical production is calculated using metered field volumes and hours on production as follows: Page 4 Gas Allocation Gross Produced Gas = total return metered at test separator. Net Produced Gas = Gross Produced Gas - Gaslift Gas. Theoretical Produced Gas = all well tests Net Produced Gas prorated by the month. (Proration calculation will include adjustments for shut in or downtime periods) Field Gas Injection = metered prior to injection Total Net Produced Gas = Field Gas Injection + Fuel Gas + Flare Gas + PPA Gas - Buy Gas (Buy Gas = imported or Caribou Crossing acquired gas). Total Net Produced Gas _ Theoretical Produced Gas -Gas Allocation Factor Gas Allocation Factor x Theoretical Produced Gas (individual well) =Allocated Gas (individual well). Oil Allocation Actual Field Oil Production = oil volume metered by LACT (sold/delivered to Northstar crude oil pipeline) (Adjusted for BS&W, temperature, and API gravity in accordance with API standards and BSEE regulations.) Gross Produced Oil = total return metered at test separator. Theoretical Well Oil Production = all well tests Gross Produced Oil prorated by the month. (Proration calculation will include adjustments for shut in or downtime periods) Theoretical Field Oil Production = Sum of Theoretical Well Oil Production Field Natural Gas liquid (NGL) Production = metered prior to commingling with oil Actual Field Oil Production - Field NGL Production Theoretical Field Oil Production =Oil Allocation Factor Oil Allocation Factor x Theoretical Well Oil Production = Allocated Oil Production (individual well). Water Allocation Actual Field Water Production = water volume metered prior to injection disposal Net Field Water Production = Actual Field Water Production - Metered Grey Water Gross Produced Water = total metered at test separator. Theoretical Well Water Production = all well tests Gross Produced Water prorated by the month. (Proration calculation will include adjustments for shut in or downtime periods) Theoretical Field Water Production = Sum of Theoretical Well Water Production Net Field Water Production _ Water Allocation Factor Theoretical Field Water Production - Water Allocation Factor x Theoretical Well Water Production = Allocated Water Production (individual well). Northstar field allocation factors for 2016 averaged 0.77 for oil, 0.92 for water and 0.94 for gas. Oil allocation factor was low due to increased Field NGL production in winter months. F. & G. Future Development Plans & Review of Annual Plan of Operations and Development In 2016, 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. The full field study of the Northstar Unit was continued. Well histories were documented, review of production and injection data, material balance calculations, and past engineering, geological, and geophysical work were studied and updated. The Ivishak reservoir simulation model, begun in 2015, was unrealistically matched to the historical Ivishak reservoir data and will be continued to be refined for possible future development purposes. Page 5 Proiects completed during the 2016 calendar year: • NS -22 - Surface casing excavation/repair in the NS -22 well. • NS -05 - Adperf/Reperf Ivishak with indications of scale, provided minimal benefit. (March 2016) • NS -11- Reperforate Ivishak with indications of scale, provided minimal benefit. (March 2016) • NS -30 - Reperforate Ivishak with indications of scale, provided minimal benefit. (March 2016) • NS -34A (Fido PA) - Reperf Ivishak with indications of scale, provided incremental oil benefit. (March 2016) • NS -16A - Reperforate Ivishak with indications of scale, provided minimal benefit. (July 2016) • NS -18 - Performed RWO recompletion from the Ivishak reservoir to the Kuparuk (August 2016) Projects postponed during the 2016 calendar year: o Convert NS -13 into a gas injector in the Ivishak reservoir. This project was delayed due to long lead tangible items to be delivered in Q1 2017. In 2017, 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 Northstar within the 2017 calendar year. The mobilization of a workover rig to the Northstar Island during the 2017 summer barging season is currently planned for the NS -15 recompletion to Kuparuk project. Projects planned for the 2017 calendar year: • Complete conversion of NS -13 into a gas injector in the Ivishak reservoir. This project will reduce injection pressure in the field and allow for compressor horsepower optimization. • Upgrade gas lift system (higher rate and pressures) to aid in the current recovery of the NS -33A & NS -34A (Fido PA) gaslift completions. • Fix surface casing leak in the NS -15 well. • Abandon the Ivishak reservoir in the NS -15 and recomplete to the Kuparuk A & C sands, Hilcorp will continue progress the full field study of the Northstar Unit. This may include re -mapping productive horizons, updating well histories, reviewing production and injection data, material balance calculations, and reviewing results of well intervention projects in 2016/2017. Sincerely, Chris Kanyer p Reservoir Engineer - Northstar Page 6