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Home My WebLink About2016 Northstar-Kuparuk Oil PoolRECEIVED Hilcorp Alaska, LLC March 30th, 2016 Cathy Foerster, Chairman Alaska Oil & Gas Conservation Commission 333 W. 71h Avenue, Suite 100 Anchorage, Alaska 99501-3539 MAR 3 12017 AOGCC 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 KUPARUK OIL POOL, STATE OF ALASKA, 2016 ANNUAL RESERVOIR REVIEW Dear Commissioner Foerster: In accordance with proposed Kuparuk Oil Pool rules applied for in October 2016 by Hilcorp Alaska, LLC ("Hilcorp"), as Operator, we hereby submit for your review the following Annual Reservoir Review for the Kuparuk Oil Pool in the Northstar Field. This is the 1't Annual Reservoir Review and corresponds to events during the 2016 calendar year. Note that the Northstar Field has been on production since November 2001, with the Kuparuk Oil Pool beginning continuous production in November 2010. Hilcorp will submit the following in good faith efforts to meet Proposed Rule 5: Annual Reservoir Review of the submitted application. A. Progress of Enhanced Recovery Proiect 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 statistics are summarized in Table 1. Average daily oil production from the Kuparuk Oil Pool field was 1,383 bopd. The values reported include oil production from the NS -18 well beginning in August 2016. During 2016, the negative reservoir voidage was calculated at 1,013.2 thousand -reservoir barrels (MRB). The average of reservoir pressure for 2016 was 3,704 psia. A compositional reservoir simulation model was developed and utilized to establish several development scenarios prior to recompleting the NS -18 well into the Kuparuk A & C in 2016. This model was matched only to historical NS - 08 production, PVT analysis, and reservoir pressure data gathered to date. Hilcorp will continue developing this into a reservoir simulation model by applying the current geologic interpretation and additional well performance data. This will improve plans for possible future producer and gas injection location(s) to enhance ultimate recovery of the Kuparuk reservoir. Table 1: NORTHSTAR KUPARUK OIL POOL 2016 OVERVIEW STATISTICAL SUMMARY WELL STATISTICS Injected Fluids As of 1 213112 01 6 Full year (1) As of Dec -16(2) Producers 2 2 Injectors 0 0 NOTES: Flare & Total Year (1) Well count data reflects ONLY those wells which contributed to production/injection during the respective year (2) Active w ells as of December 2016 Cum since PRODUCTIONIINJECTION STATISTICS Water, Voidage, Year Cumulative Start - Formation Import Injection, Cum, Up through Production 2016 12/31/16 Oil (BBL) 504,969 3,021,220 Gas (MCF) 15,135,524 75,953,695 Water (BBL) 2,960 10,776 Injection Jan -2016 0 Water (BBL) into NS10 & NS32 Disposal Well 0 0 Gas (MCF) 0 0 Balance (excludes satellite well NS -34A and Ivishak Production) 0 0 0 Cum Production (MRS) 1,013,158 5,535,610 Cum Injection (MRB) 0 0 OvedUnder(MRS) -1,013,158 -5,535,610 DAILY AVERAGE RATE DATA 2016 0 0 Production 55,513 -197,910 4,720,362 Oil, BOPD 1,380 103,852 Gas, MCF/D 41,354 301,762 Water, BWPD 8 0 Injection 0 0 -103,852 Water, BWPD 0 Gas, MCFPD 0 97203 AVERAGE RESERVOIR PRESSURE 4,921,417 0 Average of surveys obtained in 2016 3,704 psia B. Voidage Balance by Month of Produced Fluid and Iniected Fluids - 2016 Page 2 Produced! Fluids Injected Fluids Net nje on (Injection -Production) Total Flare & Total Year Cum since Net Cum since Water, Voidage, Year Cum since Formation Import Injection, Cum, stmLup, Injection, Year startji' Month Gil, MRB Free Gas, MRB MRB MRB Cum, MRB start-up, MRB Gas, MRB Gas, MRB MRB MRB MRB MRB Cum, MRB MRS Jan -2016 0 102,397 231 102,397 102,397 4,624,849 0 0 0 0 0 -102,397 -102,397 4,624,849 Feb 2016 0 95,513 125 95,513 197,910 4,720,362 0 0 0 0 0 55,513 -197,910 4,720,362 Mar -2016 0 103,852 446 103,852 301,762 4,824,214 0 0 0 0 0 -103,852 301,762 4,824,214 Apr20150 97,203 85 97203 398,965 4,921,417 0 0 0 0 0 57,203 398,965 4,921,417 May 2015 0 101,495 36 101,495 500,460 5,02$912 0 0 0 0 0 -101,495 505460 5,022912 Jun -2016 0 90,000 246 90,000 590,461 5,112913 0 0 0 0 0 -90,000 590,461 5,112913 Ju1-2016 0 92,447 436 92,447 682,WS 5205360 0 0 0 0 0 -92447 -682,908 5,205,360 Avg 2016 0 80,509 106 80,509 763,418 5,285,870 0 0 0 0 0 50509 -70,,418 5,285870 Sep -2016 0 72,941 287 72,941 836,358 5,358,810 0 0 0 0 0 -72,941 435358 -5355810 Gcl-2016 1.960 59,609 122 61,569 897,927 5420,379 0 0 0 0 0 51,569 -897,927 5,420,379 Noa2016 0 62255 283 62,255 960,182 5482,634 0 0 0 0 0 52.255 -960182 5,482,634 Dec20160 52.976 562 52,976 1,013,158 5,535610 0 0 0 0 0 -52,976 -1,013,158 5,535,610 2016 TOG Is 1,960 1,011,198 2965 1,013,158 1 0 0 0 4,03,158 Page 2 C. Summary and Analysis of reservoir pressure surveys within the pool Static bottom hole pressures collected in 2016 are summarized below. Please note this data includes Ivishak reservoir pressure data. These pressures have been included with the historical Kuparuk reservoir pressure data and are graphically represented in the next figure. The data shows current Kuparuk C reservoir pressure during 2016 was 3,704psig. 4,5D0 4,450 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 4,400 4,350 4,300 ? LynYm IYiv LLC 4,250 s 4,200 4,150 LMWett. 4,100 ]CA Lpmp'egd$w iW4 /II�N a. uBalmxw Nnwvtat 4,050 E 4,000 a. wee,e Prct NklYHtl9MNa cwu9a vE1 SOMOaPMeake .n.tmw.em b.a6w+y awl 1me Gai[r an 3,900 a WalLnan4 NOMI aaRMsOv N06f91E5 la type Se k�m'0xE tI. MGU iNI CEEB f9. ime :a. pmm WerM TW- eabntvo6a ta.gYiaa �e tzs.sm 1 4iv T .1lNM1 . TlR fy iaTO�y%v EMM 11. ax hnV. ta.Onnrm 1YD93 tagr T.Ct®wl a Rtl� AOaVv TWSb pVa) v-Pifiaeva 21Raraea 6Nbw, %Nt OMm1aW] 6L08 50029ZXIBBWOD O 5901W K9p .k 8,8442.861' 827/16 56.6 SBNP 175.3 8.755 &880 9,000 0.10 3.706 N649 50029230520000 O 590100 M ak 11.063-1?O86 827/16 386.2 S" 2475 10.744 5069 it,100 0.10 5.1% N 13 50029230170000 O 590100 NuOak tf,o5a-t t.0ar 62&16 MA SPo1P 261 10.739 5,082 11,100 0.10 5,130 NS -14A 501292301&7100 O 580100 av0ak 11,09%-t?69z 8 16 246.3 SBNP 253.8 11,093 5.122 11,100 0.10 5.134 N518 50029231020000 0 SWIM lashek t9.n9-11.Wa 829/16 WA SBM+ 269.8 10,827 5,099 11.100 0.11 5,129 NS -18 W0299t02M00 O 1 590150 KapBNk 9,=4.038 8118/18 88 P&1 1962 8.667 3,123 9.000 0.10 4.423 NS -1B 50029231020000 O 5901W Kl.a k 6.MZA, 8 92516 251 P811 183.5 8,667 3273 9,000 0.10 4,338 NS -05 5002992440000 O SWIM Nbnak 10.968n?oar 1021116 517 WIIP WGa 11,044 5,088 11.100 0.11 5,096 NS -06 500292WBBODW O 690100 NLfOak ttM-11.1S 1021116 563 5'&1P Ga 1M07 1 5,097 t1,tW 1 0.10 5.10E NS1M 50028230860100 O SWIM NmM 1?Ot5'-t 1.186 1024116 502 SKIP Bad Ga 11.045 5,132 11,100 1 0.10 5,138 N&19 SWIMMW 0 SWIM N'snak t0.95Y-t?o0a 1IM16 WA SB9b Bad Ga 10.888 5,085 11,100 0.10 4,108 N 7 SW 2990810000 0 390100 NMak 11.11 r-tt]2S 1115/16 M.7 SBM+ Ge 10.WI 5105 11,100 010 S,t32 Cmnenx WlaMbna Cd Mcbmianamsah rvafummeNEn MMN4an laMlf6 a:C 111yt6. xi wummvaawa..e.mmP-...f�.sare u+mfie �.rt9f.Yu...e.,wm�aE,.enmwaa�GutRvelmt�n�. I IgLL77 (a6!/ O.1 Mlogaq k N atl ��y1 p Pe Oec d M ESO. Spvue � J��,- PfiiN6Nme Walt p iaY lkN F�MF�er petaxc9.'N18 These pressures have been included with the historical Kuparuk reservoir pressure data and are graphically represented in the next figure. The data shows current Kuparuk C reservoir pressure during 2016 was 3,704psig. i' r r r r r r r n r r r r r � r r f0 ep f0 OJ Lr V f ' Aam. O t y -yE t c 4 0 O O -mi 6 O a O a O Page 3 4,5D0 4,450 4,400 4,350 4,300 4,250 s 4,200 4,150 4,100 0 0 � w 4,050 E 4,000 p 3,950 3,900 z 3'850 e £ 3.800 a e 3,750 u w 3,700 � 3,850 3,800 i' r r r r r r r n r r r r r � r r f0 ep f0 OJ Lr V f ' Aam. O t y -yE t c 4 0 O O -mi 6 O a O a O Page 3 D. Results and Analysis of Production and Injection log surveys, tracer surveys, observation well surveys and any other special monitoring One new Kuparuk production profile was obtained in 2016 and summarized below. There was no other special monitoring 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: 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. Page 4 (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 Theoretical Field Water Production —Water Allocation Factor 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. This data includes all Ivishak producers as well. 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 Kuparuk Reservoir was started. 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 Kuparuk compositional model was developed and had a reasonable history match. This data was utilized to apply for the Kuparuk Oil Pool, Pool Rules, in October 2016. Projects completed during the 2016 calendar year: • Re -mapped top of structure for the Kuparuk C sand • Re -mapped top of structure & net sand for the Kuparuk A sands • NS -18 - Performed RWO recompletion from the Ivishak reservoir to the Kuparuk A sands (August 2016) • NS -18 - Add perforations in the Kuparuk C to commingle the Kuparuk A sands (December 2016) 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: • 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, o Current plans include fracing of the Kuparuk A sands, with possible need for a coil tubing cleanout. Hilcorp will continue progress the Kuparuk reservoir study in 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. This will also include updating and development of the current Kuparuk C compositional model. Sincerely, Chris Kanye Reservoir Engineer- Northstar Page 5