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HomeMy WebLinkAbout2017 Milne Point UnitRECEIVED APR 0 3 201.3 Milne Point Unit Waterflood and Reservoir Surveillance Report for Kuparuk River Oil Pool Schrader Bluff Oil Pool Sag River Oil Pool January through December, 2017 Issued: March 30th, 2018 Sections and Exhibits Introduction Kuparuk River Oil Pool Section 1: Kuparuk River Oil Pool Exhibits Schrader Bluff Oil Pool Section 2: Schrader Bluff Oil Pool Exhibits Sag River Oil Pool Section 3: Sag River Oil Pool Exhibits Production/Injection Surveillance Logs Section 4: Production/Injection Well Surveillance Exhibits Shut in Well Exhibit Section 5: Shut in Well Statuses Milne Point Well Testing Section 6: Well Test Exhibits Milne Point Plan of Operations and Development Section 7: Review of Annual Plans of Operations 1 1A —1B 2 2A — 2B 3 3A — 3B 4 4A — 4B 5 5A 6 6A — 6C 7 7A ANNUAL RESERVOIR SURVEILLANCE REPORTS MILNE POINT UNIT KUPARUK RIVER OIL POOL SCHRADER BLUFF OIL POOL SAG RIVER OIL POOL JANUARY - DECEMBER 2017 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. f. Future development plans. Order 550.007, Rule 2 for All Milne Point Pools requires the Operator to submit the following for the previous calendar year: 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 year: 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 2017 is 591.4 MMSTB and cumulative gas injection is 103.1 BSCF. This data shows that the voidage replacement ratio averaged 0.91 RB/RB in 2017 compared to 0.83 RB/RB in 2016. The VRR still remained under 1.0 BBL/BBL in over pressured zones 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. 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 1-13 presents the reservoir pressure data taken during 2017 for the Kuparuk River wells. In 2017, 18 static pressure readings were obtained in the Kuparuk River reservoir. Exhibit I -A Reservoir Voidage Balance Summary Kuparuk Pool January - December 2017 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 10,594 55,875 9,887' 74,868 66,202 4,866 71,209 0.95 -3,659 2/29/2016 10,988 57,751 11,210' 78,236 65,667 5,368 71,081 0.91 -7,155 3/31/2016 11,208 60,506 12,512 82.314 69,243 6,448 75,602 0.92 -6,713 4/30/2016 10,562 55,119 13,538 77,083 65,625 7,464 72,768 0.94 -4,315 5/31/2016 8,745 47,591 9,721 64,578 54,599 5,161 59,676 0.92 -4.903 6/30/2016 9,331 58,015 10,796 76.599 60,491 5,698 66.100 0.86 -10,499 7/31/2016 10,082 54,113 11,369 73.820 63,616 6,312 69.779 0.95 -4,041 8/31/2016 10,103 54,426 9,750 72,821 61,832 6,621 68,222 0.94 -4,599 9/30/2016 8,758 50,752 9,882 67.933 52,036 5,754 57,564 0.85 -10,369 10/3112016 9,678 57,604 10,986' 76,666 63,227 5,622 68.814 0.90 -7,853 11/3012016 9,522 55,551 10,951' 74.406 62,064 4,878 67.020 0.90 -7,386 12/31/2016 10,163 56,846 11,388 76.686 62,975 4,586 67.703 0.88 -8.983 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 328,409 1,732,111 306,493 2,320.907 2,052,253 150,834 2.207,490 0.95 -113,418 2129/2016 318,666 1,674,777 325,079 2,268,853 1,904,337 155,682 2,061,355 0.91 -207,499 3/31/2016 347,448 1,875,690 387,862 2,551,745 2,146,532 199,879 2,.343,650 0.92 -208,095 4/30/2016 316,850 1,653,577 406,136 2,312,502 1,968,761 223,918 2,183,047 0.94 -129,456 5/31/2016 271,088 1,475,329 301,337 2,001,924 1,692,555 159,982 1,849,944 0.92 -151,980 6/30/2016 279,929 1,740,458 323,883 2,297,976 1,814,739 170,940 1,983,002 0.86 -314,974 7/31/2016 312,540 1,677,510 352,428 2,288,412 1,972,101 195,676 27163,134 0.95 -125,278 8/31/2016 313,194 1,687,200 302,248 2,257,461 1,916,803 205,237 2,114,896 0.94 -142,566 9/30/2016 262,753 1,522,571 296,474 2,.037,997 1,561,088 172,619 1,726.932 0.85 -311,065 10/31/2016 300,015 1,785,733 340,574 2,376,658 1,960,030 174,277 2,133.226 0.90 -243,432 11/30/2016 285,647 1,666,542 328,538 2232.188 1,861,921 146,339 2,010,594 0.90 -221,595 12/31/2016 315,064 1,762,240 353,015 2.377.279 1,952,215 142,162 2.098.796 0.88 -278,483 Average: 2016 9.978 55,346 10.999 74,668 62.298 5.731 2.073.005 0.91 -203,987 Cumulative: stb stb mscf rb stb mscf rb rb 31 -Dec -16 3,651,604 20,253,736 4,024,067 "27,324.036 22,803,335 2,097,545 26.534.675 0 97 -789,360 Exhibit I -B Form 10-412 Kuparuk Pool STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator; Hiloorp Alaska LIC. 12, Address: 3800 Centerpoint Dr. Anohora v AK 99503 3. Unit or Lase Name: Milne Point 4, Field and Pool; Ku aruk River Pool 5, Datum Reference: 7000' SS 311 Gravity; API .23 7. Gas Gravity. Air ■ 1,0 B. Well Name and 9. API Number Number; 50•XXX•XXXXX•XX XX 10.011(0) 11. AOGCC Pool or Gas Code (G) 12, Final Test Date 13. Shut -In Time, Hours 14. Press. Surv, Type (see Instructions for code e.. 15, B,H, Temp. ♦ 16. Depth 17. Final Tool TVDss Pressure at Tool Depth f.. r.. 18. Datum TVDss (Input) -... 19, Pressure Gradient, psifft. + 20, Pressure at Datum (cal) a.. Comments Zone .. +.. 61PK 38 PROD 25i<017 168 SBHP 174 6918 11,2431 7000 0.43D 1,378 Slickline Gauge C1B7 IAPL-36 PROD I 2'1012017 2,136 1 PP 150 5,908 2,522 7000 0.430 3,092 ESP Gauge A3 "MPF -14 PROD 2111/2017 P.888 I SBHP 166 6,653 2 945 7000 0.430 3,094 Slickline Gau a A3/A2/A1 41PL-03 PROD 2120/2017 2,1841 PP 168 6,837 2.715 7000 0.430 2,785 ESP Gau a B61A3/A2/At 1d PE -14A PROD 3/5/2017 8,816 SBHP 188 8,711 3,017 7000 0.430 3,141 Slickline Gnua 137/136 hl PE -22 PROD 31181'x017 144 SBHP 176 8,750 1 516 7000 0.430 1,624 Slickline Gau a C11137 1.1 PE -04 PROD S/612017 3,912 PP 173 6,7$7 2,910 70DO 0.430 3 002 ESP Gauge C1/B7 rd PK -05 PROD 5/1112017 143 PP I 17D 6.735 2,515 7DD6 0.430 2 629 ESP Gau a C11137 41PK--30 PROD 1 5/2212017 144 PP 165 6,915 2,125. 7000 0.430 2 162 ESP Gauge C11/87 IAPL--32 INJ 5122/2017 2,328 SBHP 80 4 385 3.525 7000 0.430 4,658 Slickline Gau a A3/A2 MPF -86 PROD 61412017 552 PP 170 6 775 2,617 7000 0.43D 2 734 ESP Gauge A31A2/A1 MPL-33 INJ 6/7/2017 384 SBHP 108 7,070 4 105 7000 0.430 4,075 Slickline Gau a A21A1 MPH -05 PROD 6/11/2017 384 SBHP 165 6,611 2 935 7000 D.43D 3,102 Slickline Gauge C1187 MPF -05 PROD 6119/2017 LTSI SBHP 162 1 6,342 '1321 7000 0,430 3,604 Slickline Gau e A3/A2/A1 IAPB -13 INJ 6/2112017 360 SBHP 151 7.028 '11,149 7000 0,43D 3 337 Slickline Gau a C1 M PC -04 PROD 1 71112017 266 SBHP 178 7,2 17 2 462 7000 0,430 2 369 Slickline Gau a C1 1APL-14 PROD 711612017 960 PP 177 6,990 1.67.5. 7000 0.430 1,679 ESP Gauge C1/B8/A31A2/A1 Id PE -10 PROD 9/13/2017 12,384 PP 170 6,771 3,225 1 7000 0.430 3,323 ESP Gauge C1 MPL-43 PROD 9114/2017 216 PP 172 8,656 1.910 1 7000 DA30 2.058 ESP Gau a Cl/WA31A2/A1 IAPB -21 PROD 9/15/2017 65 SBHP 175 8.986 2.048 1 7DD6 0.430 2061 Slickline Gau a 88137136 IAPKABA INJ 9116/2017 82 1 SBHP 108 7,225 2670 7DD6 0.430 2573 Slickline Gauge C1/137 IAPK-22 INJ 911612017 88 SBHP 131 1 71309 3,12D 7DD6 0.436 3,116 Slickline Gauge C11 141213-10 PROD 1 9/1812017 3 DD0 SBHP 168 6,824 3.512 7000 0.430 ',1.S88 Slickline Gau a C1B7 MPF -D1 PROD 9119/2017 100 PP 173 6,782 2.232 7000 0.430 1 2,326 ESP Gauge A3/A2A1 PA PL -D8 INJ 912012017 192 SBHP 113 7 095 4 390 7DD6 0.430 1 4,1149 Slickline Gau a C1B61A3/A21A1 )APE -11 PROD 9/2912017 1 872 PP 175 8,704 2,78D 70130 0.43D 2,907 ESP Gauge C1 MPR -04A PROD 1012&2D17 LTSI SBHP 164 6,749 2 762 7000 0,430 2,870 Slickline Gau a C1157 61PC-45 PROD 11112'2017 lNew Well SBHP 166 6,909, 3,279 7000 D.43D 3,318 Slickline Gauge C1B7 h1PF--50 PROD wn since 81221 1211/2017 2,448 PP 178 7.D53 1,279 7000 0.431) 1.256 ESP Gau e A3/A2/A1 hl PF -61 PROD 1 12122/2017 7150D SBHP 177 6,901 2 785 7000 0.430 2.828 Slickline Gau a B&A24A2/A1 1d PF -29 PROD 123112017 7,512 PP 178 7,103 1,823 7000 0.430 1,779 ESP Gauge A3/A2JA1 hiPF-81 PROD 123112017 LTSI PP 155 6,514 3 953 7000 0.43D 4,162 ESP Gauge A31A2/A1 CAPE -19 PROD wn since 1/241 121/201 r7 8 304 PP 176 6,881 1,517 7DD0 0.430 1 'EZ8 ESP Gnu a C1/B7 61 PK -D6 PROD 1231120/7 LTSI PP 162 6,754, 2,511 7000 0,430 2 617 ESP Gauge C1 Avera a 2843 21, All tests reported herein were made in accordance with the applicable rules regulations and instructions of the Alaska 011 and Gas Conservation Commission. I hereby certify that the foregoing is true and correct to the best of my knowledge. Signature Title Reservoir Engineer Printed Name Almks Altkulov Date 1/30/2018 Section 2 Schrader Bluff Oil Pool List of Exhibits Reservoir Voidage Balance 2-A 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 8.6 MSTBD for 2017 compared to 7.4 MSTBD in 2016 due to an active workover program and renewed development drilling. The water injection rate averaged 28.9 MBWD for 2017 compared to 26.6 MBWD in 2016. 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 187.8 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 2017. Cumulative gas injection through the end of 2017 remains as it was at year-end 2008: 220 MMSCF. During the 2017 calendar year, the cumulative under -injection remained flat at 23.6 MMRVB. In the supported waterflood patterns, under -injection is minimal. The average voidage replacement ratio, or VRR, for 2017 was 1.00. Future development plans for the Schrader Bluff oil pool include continued expansion into undeveloped areas in the North West area of the pool via F, L , and the soon to be completed Moose Pad which will include the development of the Nb, Ne, Oa , and Ob sands. Northwest expansion in the Schrader Bluff reservoir began with L -pad drilling towards the end of 2016 which targeted Schrader OA sands. In late 2017 three horizontal wells were drilled in the Schrader Nb sand (2 prod / 1 inj) from L Pad. These wells will be part of a polymer flood pilot beginning mid 2018. Additional development is planned in the F&L pad areas throughout 2018 via a 5 well Schrader Oa sand pattern development from F pad, expansion of the L Pad Schrader Nb pattern drilled in 2017 with 3 additional wells. An additional polymer pilot will begin mid 2018 targeting the 4 horizontal well J Pad Nb pattern drilled in 2016. 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 2017. In 2017, 32 static pressures were obtained. Exhibit 2-A Reservoir Voidage Balance Summary Schrader Bluff Pool January - December 2017 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) 1/31/2017 7, 914 16,772 1,835 25,829 28,013 0 28,293 1.10 2,464 2/28/2017 7,545 16,573 2,087 25,690 28,690 0 28,977 1.13 3,287 3/31/2017 9,039 16,932 3,498 29,236 29,794 0 30,092 1.03 857 4/30/2017 9,863 17,121 3,089 29,504 29,725 0 30,023 1.02 518 5/31/2017 8,801 17,313 3,625 29,610 27,204 0 27,476 0.93 -2,134 6/30/2017 9,446 20,369 3,147r 32,534 32,135 0 32,456 1.00 -78 7/31/2017 9,250 19,739 2,805 ' 31,259 31,972 0 32,291 1.03 1,032 8/31/2017 8,777 20,934 4,077 33,886 29,263 0 29,556 0.87 -4,330 9/30/2017 8,216 19,535 2,658 30,022 28,263 0 28,545 0.95 -1,477 10/31/2017 8,126 19,297 2,562 29,575 29,511 0 29,806 1.01 231 11/30/2017 7,547 15,878 2,271 ' 25,250 25,330 0 25,583 1.01 333 12/31/2017 8,736 16,399 2,201 26,624 27,301 0 27,574 1.04 950 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) 1/31/2017 245,324 519,932 56,894 800,708 868,408 0 877,092 1.10 76,384 2/28/2017 211,261 464,032 58,440 719,325 803,333 0 811,366 1.13 92,041 3/31/2017 280,208 524,905 108,450 906,304 923,622 0 932,858 1.03 26,554 4/30/2017 295,900 513,639 92,674 885,133 891,763 0 900,681 1.02 15,548 5/31/2017 272,816 536,710 112,390 917,909 843,310 0 851,743 0.93 -66,166 6/30/2017 283,392 611,058 94,397 976,005 964,039 0 973,679 1.00 -2,326 7/31/2017 286,756 611,895 86,960 969,024 991,117 0 1,001,028 1.03 32,004 8/31/2017 272,073 648,965 126,385 1,050,461 907,154 0 916,226 0.87 -134,235 9/30/2017 246,469 586,041 79,747 900,665 847,876 0 856,355 0.95 -44,310 10/31/2017 251,919 598,218 79,414 916,831 914,842 0 923,990 1.01 7,160 11/30/2017 226,423 476,330 68,124 757,489 759,888 0 767,487 1.01 9,998 12/31/2017 270,806 508,380 68,239 825,342 846,321 0 854,784 1.04 29,443 Average: 2017 8,605 18,072 2,821 29,085 28,933 0 29,223 1.00 138 Cumulative: stb stb mscf rb stb mscf rb rb 31 -Dec -17 3,143, 347 6,600,104 1,032,114 ' 10, 517,168 10, 561, 673 0 10, 772, 906 1.02 255,739 Rvhihit ?-R Form 10-412 Schrader Bluff Pool STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator: Hlcorp Alaska, LLC. 2. Address: 3800 Centerpoint Dr. Anchorage, AK 99503 3. Unit or Lease Name: Mine Point 4. Field and Pool: Schrader BluffPool 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 12. Final Test (G) Pool Code Date 13, Shut -In Time, Flours V - 14. Press. Surv. Type is instruction 15. B.H. Ter p. 16. Depth Tool TVDss I 17. Final Pressure at Tool Depth I 18. Datum 19. Pressure Gradient, psilft. jDatum TVDss (input) Comments Zone MPB-32 50-500-29235-70-00 PROD 525140 3/16/2017 New Well PP 86 4,178 1,937 4,000 0.400 Downhole Tbg Gauge NC MPI -12 50-500-29230-38-00 PROD 525140 5/11/2017 860 PP 71 3,558 1,372 4,000 0.400 ,Downhole TbgGauge OA/OB MPS -12 50-500-29231-39-00 PROD 525140 5/21/2017 144 PP 79 4,054 1,155 4,000 0.400 1,133 Press Gauge OA/OB MPI -04A 50-500-29220-08-01 PROD 525140 1 6/18/2017 1,944 PP 80 3,740 1,233 4,000 0.400 1,337 ESP Gauge N/OA/OB MPI -14 50-500-29232-14.00 PROD 525140 6/20/2017 140 PP 81 3,660 1,116 4,000 0.400 1,252 ESP Gauge NB/OA/OB MPL-46 50-500-29235-51-00 PROD 525140 7/20/2017 720 PP 72 3,384 1,345 4,000 1 0.400 1,591 ESP Gauge OA MPI -19 50-500-29232-18-00 PROD 525140 8/14/2017 1,800 PP 83 3,844 1,250 4,000 0.400 1,312 ESP Gauge OA/OB MPE-32 50-500-29232-61-00 PROD 525140 9/15/2017 64 PP 95 4,333 1,268 4,000 0.400 1,135 ESP Gauge MPI -15 50-500-29231-06-00 PROD 525140 10/7/2017 5,832 PP 68 3,387 1,181 4,000 0.400 1,426 ESP Gauge OA/OB MPG -02 50-500-29219-26-00 PROD 525140 11/4/2017 840 PP 84 1,232 3,720 4,000 0.400 4,827 ESP Gauge NA/NB/NC MPS -15 50-500-29230-61-00 INJ 525140 11/13/2017 120 SBHP 78 4,347 2,850 4,000 0.400 2,711 Slickline Gauge MPS -23 50-500-29230-98-00 PROD 525140 11/13/2017 106 SBHP 86 4,044 1,245 4,000 0.400 1,227 Slickline Gauge MPH -19 50-500-29233-71-00 PROD 525140 11/14/2017 LTSI PP 80 3,987 1,724 4,000 0.400 1,729 Downhole Gauge OA/OB MPS-26SS 50-500-29231-50-81 INJ 525140 11/19/2017 216 SBHP 88 4,078 2,082 4,000 1 0.400 2,051 Slickline Gauge MPS-26LS 50-500-29231-50-80 INJ 525140 11/19/2017 216 SBHP 85 4,018 2,083 4,000 0.400 2,076 Slickline Gauge MPS-13SS 50-500.29230-93-80 INJ 525140 11/20/2017 336 SBHP 86 4,144 2,142 4,000 0.400 2,084 Slickline Gauge MPS-13LS 50-500-29230-93-80 INJ 525140 11/20/2017 336 SBHP 93 4,169 2,129 4,000 0.400 2,061 ISlickline Gauge MPS -33A 50-500-29231-23-01 INJ 525140 11/24/2017 408 SBHP 1 76 4,090 1,713 4,000 0.400 1,677 ISlickline Gauge MPI -16 50-500-29232-21-00 INJ 525140 1 11/25/2017 1,992 SBHP 93 3,914 2,328 4,000 0.400 2,362 Slickline Gauge MPL-53 50-500-29235.86-00 PROD 525140 11/29/2017 New Well PP 60 2,947 1,367 4,000 0.400 1,788 ESP Gauge NB MPS -05 50500-29231-00-00 PROD 525140 12/20/2017 53 PP 3,993 1,131 4,000 0.400 1,134 Downhole Gauge MPL-51 50-500-29235-87-00 PROD 525140 12/27/2017 New Well PP 69 3,359 1,558 1 4,000 0.400 1,814 ESP Gauge NB MPJ -08A 50500-29224-97-01 PROD 525140 12/31/2017 3,552 PP 80 3,758 1,398 4,000 0.400 1,495 ESP Gauge OB MPJ -09A 50-500-29224-95-01 PROD 525140 12/31/2017 1,872 PP 78 3,671 1,408 4,000 0.400 1,540 ESP Gauge MPG -08A 50-500-29221-41-01 PROD 525140 12/31/2017 3,432 PP 76 3,357 1,352 4,000 0.400 1,609 ESP Gauge NA/NB/NC/NE/OA/OB MPE-15 50-500-29225-28-00 PROD 525140 12/31/2017 3,456 PP 86 4,120 1,914 4,000 0.400 1,866 JESP Gauge NB/NC/OA MPI -17 50-500.29232-12-00 PROD 525140 12/31/2017 1,440 PP 75 3,853 1,278 4,000 0.400 1,337 ESP Gauge NB/OA/OB MPS -24 50-500-29231-42-00 PROD 525140 12/31/2017 LTSI PP 76 3,955 1,515 4,000 0.400 1,533 Downhole Gauge NB MPG -15 50-500-29227-84-00 PROD 525140 12/31/2017 LTSI PP 84 3,911 1,828 4,000 0.400 1,864 ESP Gauge NB/NC/OA/OB MPI -18 50-500-29234-61-00 INJ 525140 12/31/2017 1,344 PP 86 3,727 2,010 4,000 0.400 2,119 Downhole Gauge NB MPI -18 50-500-29234-61-00 INJ 525140 12/31/2017 1,344 PP 89 3,864 2,076 4,000 0.400 2,130 Downhole Gauge OA MPI -18 50-500-29234-61-00 INJ 525140 12/31/2017 1,344 PP 92 3,954 2,114 4,000 0.400 2,132 Downhole Gauge OB Average 1,792 21. All tests reported herein were made in accordance with the applicable rules, regulations and instructions of the Alaska Oil and Gas Conservation Conrrission. I hereby certify that the foregoing is true and correct to the best of my know ledge. Signature Tele Reserwir Engineer Printed Name Reid Edwards Date 3/29/2018 Section 3 Sag River Oil Pool List of Exhibits Reservoir Voidage Balance Static Pressure Data (Form 10-412) 3-B 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 2017, two new Sag wells, MPC - 46 and MPB-30 were completed in July and November, respectively, bringing the field total to 6 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 2017, and both new Sag wells, MPC -46 and MPB-30 were completed with fracture stimulation treatments. The Sag River Pool oil production averaged 840 STBD (average GOR of 1,365 SCF/BBL), and water production averaged 826 STBD in 2017. Cumulative production through the end of 2017 is 4.26 MMSTB of oil, 3.49 BSCF of gas, and 2.76 MMSTB of water. The average Sag production rate in 2016 was 423 STBD. The significant increase in 2017 was likely due to two new wells early high production. Exhibit 3-C presents the reservoir pressure data for the Sag River wells taken during 2017. Four pressure surveys were obtained. Exhibit 3-A Reservoir Voidage Balance Summary Sag River Pool January - December 2017 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 439 394 3,001 2,677 0 0 0 0.00 -2.677 2/29/2016 701 354 1,783 2,.170 0 0 0 0.00 -2,170 3/31/2016 740 387 707 1,591 0 0 0 0.00 -1,591 4/30/2016 781 468 772 1,755 0 0 0 0.00 -1.755 5/31/2016 583 416 644 1.420 0 0 0 0.00 -1,420 6/30/2016 838 943 907 2,380 0 0 0 0.00 -2,380 7/31/2016 964 894 1,318 2,710 0 0 0 0.00 -2,710 8/31/2016 1,415 1,117 2,201 3,940 0 0 0 0.00 -3.940 9/30/2016 1,089 1,069 1,882 3,361 0 0 0 0.00 -1361 10/31/2016 934 1,178 1,695 3,198 0 0 0 0.00 -3,198 11/30/2016 638 1,324 1,299 3,007 0 0 0 0.00 -3,007 12/31/2016 755 1,368 1,167 2.006 0 0 0 0.00 -2.886 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) 1131/2016 13,603 12,218 93,025 82,996 0 0 0 0.00 -82,996 2/29/2016 20,338 10,265 51,717 62.919 0 0 0 0.00 -62,919 3/31/2016 22,942 12,010 21,907 49,309 0 0 0 0.00 -49,309 4/30/2016 23,431 14,050 23,162 52,658 0 0 0 0.00 -52,6.58 5131/2016 18,083 12,909 19,957 44,009 0 0 0 0.00 -44,009 6/30/2016 25,134 28,295 27,202 71.403 0 0 0 0.00 -71,403 7/31/2016 29,894 27,706 40,863 84.023 0 0 0 0.00 -84,023 8/31/2016 43,850 34,620 68,227 122,135 0 0 0 0.00 -122,135 9/30/2016 32,680 32,079 58,445 100,823 0 0 0 0.00 -100,823 10/31/2016 28,957 36,524 52,556 99,140 0 0 0 0.00 -99,140 11/30/2016 25,130 39,729 38,969 90.201 0 0 0 0.00 -90,201 12/31/2016 23,416 42,419 36,166 09.469 0 0 0 0.00 -89,469 Average: 2016 840 826 1.448 2.591 0 0 0 0.00 -2,591 Cumulative: stb stb mscf rb stb mscf rb rb 31 -Dec -16 307,459 302,825 530,196 1,035,007 0 0 0 0.00 -1.035,007 Fxhih;r ;-R Form 10-412 Sag River Pool STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT '.1. Operator: Hilcorp Alaska, LLC. 2. Address: 3800 centerpoint Dr. Anchorage, AK 99503 3. Unit or Lease Name: Milne Point 4. Field and Pool: Sag River 011 Pool 5. Datum Reference: 8750'S' 6, Oil Gravity: API - 34 7. Gas Gravl : Air =.65 8. Well Name 9. API Number s0-)ocx-xyxxX-70(-RX 10.011(0) or Gas 11. AOGCC 12. Final Test 13, Shut -In Time, 14. Press. 15. B.H. 16. Depth Tool 17. Final and Number: (G) Pool Code Date Hours Surv. Type Temp. TVDss Observed (see Pressure at Instructions Tool Depth for codes) 18. Datum TVDss (Input) 19. Pressure Gradient, psOh. 20. Pressure at Datum (cal) Comments Zone Code MPS -90 50-029-23276-00-00 PROD 1/21/2017 216 PP 219 8 507 3,770 8 750 U10 3,845 DH Press Gau e !MPC -15A PROD 3/1/2017 432 PP 170 6,613 1,850 8,750 0.310 2,512 Press Gauge MPB-30 PROD 512012017 New Well PP 223 8,718 4,050 8,750 0.310 4,060 DH Press Gauge MPC -46 PROD 8/27/2017 120 PP 223 8,494 2,540 8,750 0.310 2,619 DH Press Gauge age 3,473 21. Ail tests reported herein were made in accordance wllh the applicable rules regulations and Instructions ofthe Alaska Oil and Gas Conservation Commission. I here qy certify that the foregoing is true and cortectto the bestofmy knowledge. Signature Title Reservoir Engineer Printed Name Almas Altkulov Date 3/30/2017 Section 4 Production/Injection Well Surveillance List of Exhibits Milne Point Kuparuk Surveillance 1/1/2017 — 12/31/2017 4-A Milne Point Schrader Surveillance 1/1/2017 —12/31/2017 4-13 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 24 existing Kuparuk multi -zone injectors in 2017.Five of 24 multi -zone injectors cannot be used for IPROF's due to mechanical issues. Seven injection surveys were obtained in 2017. All of these injection surveys were performed in multi -zone injectors. There were 18 existing unregulated Schrader Bluff multi -zone injectors in 2017, seven of which were shut in all year. Injection surveys were run in 3 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 2017. Exhibits 5-A & 5-13 are a summary of the Milne Point field well surveillance performed in 2017 on both Schrader and Kuparuk Pools. Exhibit 4-A Production/Injection 2017 Logging & Surveillance Kuparuk River Pool Well Name Reservoir Well Type Rec Date Log Type Field Analysis Final Determination 0% C, 0% A3,100% A2. Data suggests injecting fluid is Agree With field traveling futher downhole into interpreation. Stop MPC -06 KUP WINJ 10/22/2017 STPAPROF lower portion of the A2 Sands count inconclusive. Aprox 15%flow reduction in B/C 27% BIC sands, 37% MPC -10 KUP WINJ 12/6/2017 STPAPROF sands. A3,36% A2 Data suggests injecting fluid is traveling futher downhole into the 0%C, 0%B, 100%A3 MPC -19 KUP WINJ 10/23/2017 STPAPROF 0 A3 Agree with field interpretation 0% C, 3% B, 49% A3/A2, MPF -89 KUP WINJ 12/21/2017 STPAPROF 47% All It appears the majority of fluid is 0% B, 100% A31A2 into the perts @ 9426'-9490' sands. Agree with field IVIPJ-11 KUP WINJ 9125/2017 STPAPROF interpretation. interpretation. It appears the majority of fluid is 100% C, 0% B. Agree MPK-18A KUP WINJ 9/21/2017 STPAPROF going into the C sand. with field interpretation The data inconclusive There appears to be a possible too low flow rate for casing leak at 12100'. spinner to see the IYIPL-24 KUP WINJ 10/2/2017 STPAPROF splits. Exhibit 4-B Production/Injection 2017 Logging & Surveillance Schrader Bluff Pool Well Name Reservoir Well Type Rec Date Log Type Field Analysis Final Determination Nb - 57%, Nc - 0%, Majority of fluid loss in Nb and Ne - 0%, Oa - 22%, G-01 SBL INJ 815/2017 STPAPROF Ob sands Ob - 22% Spinners clogged with schmoo, no spinner data available. Temperature indicates injection Nb - 33% , Oa - 33%, G-10 SBL INJ 11/15/2017 STP/IPROF down to bototm Ob sand Ob - 33% Spinners clogged with schmoo, Nb - 31%, Oa - 69%, J-15 SBL INJ 12129/2017, STP/IPROF limited spinner data available Ob - 0% Section 5 Shut in Well Status List of Exhibits Milne Point Shut in Well Status 1/1/2017 —12/31/2017 5-A (to be discussed in May meeting) 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 MI i 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 B, 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 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 2017. 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. At Milne Point, Weatherford multiphase meters, aka Alpha VSRD (Venturi, Sonar, Red Eye, Densitometer), were installed at G and S and B -Pads in 2009, 2011 and 2013, respectively. For the 2017 year, all G -Pad and S -Pad wells were allocated from the VSRD well tests. B -Pad allocations were made via VSRD through March 2017, then from a traditional test separator thereafter. Due to frequent meter maintenance, a plan to replace the G -Pad VSRD with a traditional separator is being explored in 2018. Milne Point operators review well test quality on a daily basis and work with engineers and field technicians to get meters fixed when needed. I and J pads currently use Kvaerner-Hydrocyclone 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. Prior to 2017, Portable Test Units (ASRC and PTS) were utilized to assess permanent unit performance and for some well test allocations. In 2017, no Portable Test Units were used. 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 Exhibit 6-A Well Test Summary Milne Point Unit 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 f 10% 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 Well Test Frequency - By Pad/Oil Pool Milne Point Unit 6B - Well Test allocation factors by month Prod alloc Oil Factor Gas Factor Water Factor 01/31/2017 0.827 0.978 1.000 02/28/2017 0.831 1.108 1.041 03/31/2017 0.862 1.102 1.038 04/30/2017 0.877 1.152 0.987 05/31/2017 0.807 1.330 0.965 06/30/2017 0.831 1.110 1.026 07/31/2017 0.853 1.085 0.982 08/31/2017 0.842 0.975 0.979 09/30/2017 0.833 1.021 1.050 10/31/2017 0.819 1.066 1.076 11/30/2017 0.807 1.019 1.072 12/31/2017 0.828 0.979 1.074 2017 Well tests by Pad Name Avg. Tests Per Month MPU Pad B General 7.96 MPU Pad C General 10.72 MPU Pad E General 6.93 MPU Pad F General 5.67 MPU Pad G General 12.70 MPU Pad H General 6.46 MPU Pad I General 11.87 MPU Pad J General 7.60 MPU Pad K General 10.11 MPU Pad L General 6.59 MPU Pad S General 7.99 MPU Kuparuk PA (MLNE) MPU Sag ADL 25516 (MP17) MPU Sag ADL 380109 (MP18) MPU Sag ADL 47434 (MP16) MPU Sag 8-030 ADL 47437 MPU Sag/Und ADL 375132 (MP03) MPU Schrader Bluff PA (SCHR) 10.72 6.65' 4.47 6.60 3.35 8.15 12.70 Exhibit 6-C Well Test Frequency - By Well Kuparuk Oil Pool Average Well Tests Report Start: 01/01/2017 End: 12/31/2017 North Slope Milne Point MP B-09 MPU Kuparuk PA (IALNE) 359 82 6.97 1,113 B-10 MPU Kuparuk PA (MLNE) 203 53 7.96 Mp B-15 MPU Kuparuk PA (MLNE) 356 82 7.03 LIP B-16 MPU Kuparuk PA (MLNE) 362 78 6.57 MP B-21 MPU Kuparuk PA (MLNE) 358 45 3.83 IAP B -22A MPU Kuparuk PA (h1LNE) 361 47 3.97 MP B-28 MPU Schrader Bluff PA ( SCHR) 364 82 6.87 MP B-30 MPU Sag ADL 47437(MP19) 319 35 3.35 MP B-32 MPU Schrader Bluff PA (SCHR) 218 36 5.04 i IAP C-01 MPU Kuparuk PA (MLNE) 364 92 7.71 MP C-03 MPU Kuparuk PA (MLNE) 365 93 7.77 1,113 C-04 MPU Kuparuk PA (MLNE) 355 81 6.96 :IAP C -OSA Ir1PU Kuparuk PA (MLNE) 37 13 10.72 MP C-07 MPU Kuparuk PA (MLNE) 364 78 6.54 MP C-09 MPU Kuparuk PA (IALNE) 365 76 6.35 IAP C-13 MPU Kuparuk PA (MLNE) 363 79 6.64 MP C-14 MPU Kuparuk PA (MLNE) 356 73 6.25 IAP C-1 5A MPU Sag ADL 25516 (MP17) 335 73 6.65 MP C-21 MPU Kuparuk PA (IALNE) 166 43 7.90 FAP C -22A MPU Kuparuk PA (MLNE) 360 84 7.12 j FAP C-23 MPU Sag ADL 47434 (MP16) 365 79 6.60 j IAP C -24A MPU Kuparuk PA (MLNE) 365 79 6.60 "IAP C-26 MPU Kuparuk PA (MLNE) 364 70 5.87 MP C-40 MPU Kuparuk PA (MLNE) 365 76 6.35 ;FAP C-43 IVIPU Kuparuk PA (MLNE) 365 84 7.02 IAP C-45 MPU Kuparuk PA (MLNE) 352 10 0.87 1.1P C-46 MPU Sag ADL 25516(MP17) 338 38 3.43 IAP E-04 MPU Kuparuk PA (MLNE) 235 37 4.80 MP E-06 MPU Kuparuk PA (MLNE) 355 59 5.07 MP E-09 MPU Kuparuk PA (MLNE) 85 18 6.46 FAP E-11 MPU Kuparuk PA (MLNE) 191 36 5.75 LIP E -14A MPU Kuparuk PA (MLNE) 241 48 6.07 MP E-15 IAPU Kuparuk PA (IALNE) 0 1 0.00 MP E-18 MPU Kuparuk PA (MLNE) 360 67 5.68 Exhibit 6-C Well Test Summary Milne Point Unit MP E-19 MPU Kuparuk PA (MLNE) 22 5 6.93 MP E -20A MPU Schrader Bluff PA ( SCHR) 364 76 6.37 MP E-22 MPU Kuparuk PA (MLNE) 301 62 628 MP E -24A MPU Schrader Bluff PA ( SCHR) 359 66 5.61 MP E-31 MPU Schrader Bluff PA ( SCHR) 365 70 5.85 MP E-32 MPU Schrader Bluff PA ( SCHR) 364 74 6.20 MP F-01 MPU Kuparuk PA (MLNE) 315 51 4.94 MP F-06 MPU Kuparuk PA (MLNE) 355 54 4.64 MP F-09 MPU Kuparuk PA (MLNE) 355 55 4.73 MP F-14 MPU Kuparuk PA (MLNE) 315 48 4.65 MP F-18 MPU Kuparuk PA (MLNE) 358 54 4.60 MP F-22 MPU Kuparuk PA (MLNE) 360 55 4.66 MP F-25 MPU Kuparuk PA (MLNE) 362 55 4.63 MP F-29 MPU Kuparuk PA (MLNE) 53 5 2.88 MP F-34 MPU Kuparuk PA (MLNE) 361 54 4.56 MP F-37 MPU Kuparuk PA (MLNE) 360 53 4.49 MP F-38 MPU Kuparuk PA (MLNE) 355 32 2.75 MP F-45 MPU Kuparuk PA (MLNE) 360 56 4.74 MP F-50 MPU Kuparuk PA (MLNE) 245 39 4.86 MP F -53A MPU Kuparuk PA (MLNE) 357 51 4.36 MP F-54 MPU Kuparuk PA (MLNE) 361 57 4.82 MP F -57A MPU Kuparuk PA (MLNE) 361 53 4.48 MP F-61 MPU Kuparuk PA (MLNE) 43 8 5.67 MP F-65 MPU Kuparuk PA (MLNE) 360 55 4.66 MP F -66A MPU Kuparuk PA (MLNE) 364 57 4.78 MP F-69 MPU Kuparuk PA (MLNE) 161 23 4.36 MP F -76A MPU Kuparuk PA (MLNE) 355 49 4.21 MP F-79 MPU Kuparuk PA (MLNE) 316 42 4.05 MP F-86 MPU Kuparuk PA (MLNE) 324 34 3.20 MP F -87A MPU Kuparuk PA (MLNE) 356 51 4.37 MP F-93 MPU Kuparuk PA (MLNE) 356 55 4.71 MP F-94 MPU Kuparuk PA (MLNE) 358 49 4.17 MP F-96 MPU Kuparuk PA (MLNE) 359 48 4.08 MP G-02 MPU Schrader Bluff PA ( SCHR) 319 117 11.19 MP G-08 A MPU Schrader Bluff PA (SCHR) 220 80 11.09 MPG -14 MPU Schrader Bluff PA ( SCHR) 365 152 12.70 MPG -16 MPU Schrader Bluff PA ( SCHR) 365 137 11.45 MPG -18 MPU Schrader Bluff PA ( SCHR) 365 116 9.69 MP H-05 MPU Kuparuk PA (MLNE) 274 58 6.46 MP H -08B MPU Schrader Bluff PA ( SCHR) 365 51 4.26 MPH -16 MPU Schrader Bluff PA ( SCHR) 365 56 4.68 MPH -18 MPU Schrader Bluff PA ( SCHR) 308 49 4.85 Exhibit 6-C Well Test Summary Milne Point Unit MP I-03 MPU Schrader Bluff PA ( SCHR) 365 142 11.87 MP L -04A MPU Schrader Bluff PA { SCHR) 8D 11 4.19 LIP 1.-11 MPU Schrader Bluff PA (SCHR) 365 123 1 D28 MP 1-12 MPU Schrader Bluff PA ( SCHR) 96 19 6.D4 MP 1-14 MPU Schrader Bluff PA ( SCHR) 357 133 11.36 MP 1-15 MPU Schrader Bluff PA { SCHR) 126 44 1 D.65 MP 1--17 MPU Schrader Bluff PA ( SCHR) 307 10B 10.73 MP k19 MPU Schrader Bluff PA ( SCHR) 131 32 7.45 MPJ -01A MPU Schrader Bluff PA { SCHR) 345 77 6.81 MP J-03 MPU Schrader Bluff PA { SCHR) 365 78 6.52 IAP J-06 MPU Kuparuk PA (MLNE) 358 71 6.05 MP J -08A MPU Schrader Bluff PA ( SCHR) 95 17 5.46 MP J -09A MPU Schrader Bluff PA ( SCHR) 289 55 5.80 MPJ -10 MPU Kuparuk PA (MLNE) 364 67 5.61 MP J-25 IAPU Schrader Bluff PA ( SCHR) 364 69 5.78 MP J-26 MPU Schrader Bluff PA ( SCHR) 362 63 5.31 MP J-27 MPU Schrader Bluff PA ( SCHR) 365 8B 7.35 MP J-28 MPU Schrader Bluff PA ( SCHR) 365 91 7.60 MP K-05 MPU Kuparuk PA (MLNE) 357 104 8.89 MP K-17 MPU Kuparuk PA (MLNE) 365 10D 8.36 PAP K-30 MPU Kuparuk PA (MLNE) 352 1D7 9.27 MP K-33 MPU Kuparuk PA (PALNE) 198 51 7.86 MP K-33 MPU SagMnd ADL 375132 (MP03) 101 27 8.15 MP K-38 MPU Kuparuk PA (MLNE) 28 B 8.71 PAP K-44 MPU Kuparuk PA (MLNE) 365 121 10.11 MP L -02A MPU Kuparuk PA (MLNE) 365 76 6.35 MP L-03 MPU Kuparuk PA (IALHE) 315 63 6.10 MP L-04 MPU Kuparuk PA (MLNE) 364 73 6.12 MP L-05 PAPU Kuparuk PA (MLNE) 365 74 6.18 MP L-07 MPU Kuparuk PA (MLNE) 359 70 5.95 MP L-11 MPU Kuparuk PA (MLNE) 362 7B 6.57 MP L-12 MPU Kuparuk PA (MLNE) 365 75 6.27 MP L-13 MPU Kuparuk PA (IALNE) 364 66 5.53 MP L-14 MPU Kuparuk PA (MLNE) 327 34 3.17 NIP L-20 MPU Kuparuk PA (MLNE) 365 70 5.85 MP L-25 MPU Kuparuk PA (MLNE) 357 63 5.38 MP L -28A MPU Kuparuk PA (MLNE) 364 74 620 MP L-29 MPU Kuparuk PA (MLNE) 365 73 6.10 MP L-36 IAPU Kuparuk PA (MLNE) 176 3B 6.59 MP L-39 MPU Kuparuk PA (MLNE) 181 32 5.39 FAP L-40 MPU Kuparuk PA (IALNE) 358 64 5.45 MP L-43 MPU Kuparuk PA (IALNE) 348 63 5.52 Exhibit 6-C Well Test Summary Milne Point Unit Formation Name 1 Total Tests Avg. Tests MP L-46 MPU Schrader Bluff PA ( SCHR) 332 69 6.34 MP L-47 MPU Schrader Bluff PA ( SCHR) 365 78 6.52 MP L-53 MPU Schrader Bluff PA ( SCHR) 13 1 2.35 MP S-05 MPU Schrader Bluff PA ( SCHR) 355 93 7.99 MP S-12 MPU Schrader Bluff PA ( SCHR) 361 92 7.77 MP S-17 MPU Schrader Bluff PA ( SCHR) 361 78 6.59 MP S-23 MPU Schrader Bluff PA ( SCHR) 349 80 6.99 MP S-25 MPU Schrader Bluff PA (SCHR) 361 86 7.27 MP S-27 MPU Schrader Bluff PA (SCHR) 358 84 7.16 MP S-28 MPU Schrader Bluff PA ( SCHR) 361 60 5.07 MP S-35 MPU Schrader Bluff PA ( SCHR) 361 59 4.98 MP S-90 MPU Sag ADL 380109 (MP18) 341 50 4.47 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 I. 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. II. PLAN REVIEW A. Drilling Program Hilcorp completed seven drill wells in 2017: • B-32 — Schrader Nc sand lateral producer • B-33 — Schrader Nc sand lateral injector • B-30 — Sag producer • C-46 — Sag producer • C-45 — Kuparuk producer • L-51 — Schrader Nb sand lateral producer • L-53 — Schrader Nb sand lateral producer Hilcorp drilled the C-47 Kuparuk well and left suspended with surface casing after losing the production hole section B. Workover Program Hilcorp completed the following well projects: • Schrader Bluff o 4 ESP Change -outs — I-15 / I-19 / G-02 / L-46 • Kuparuk 0 6 ESP Change -outs — E -14A / E-04 / E-22 / L-14 / L-36 / F-50 0 1 Conversion from ESP to gas lift — E-11 0 1 Gas lift completion repair — B-10 C. Major Facility Projects Key activities included: • 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) Exhibit 7-A Review of Annual Plan of Development and Operations Milne Point Unit • L -Pad infrastructure upgrades to support drill wells • Rig Shore power for E -Pad, repairs for F -Pad • Fire Gas Upgrades — at Mod6l/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 5 new wells • L Pad Expansion — expand the pad to accommodate 8 new wells • Moose Pad — new road and pad will be installed III. 2017 PLAN OF DEVELOPMENT AND OPERATIONS A. Proposed Drilling Program During the 2018 calendar year, Hilcorp anticipates drilling up to sixteen new wells, including: • 5 Schrader Oa wells from F Pad — F-106-110 ( 2 prod / 3 inj) • 4 Schrader Nb wells from L Pad — L-52 /54 / 56/ 58 (1 inj / 3 prod) • 2 Sag producers from L Pad — L-55 / 58 • 1 Kuparuk well from L Pad — L-41 • 1 Kuparuk well from C Pad — C-47 (surface hole completed in 2017) • 2 Schrader Oa wells form Moose Pad — M-10/11 (1 prod / 1 inj) B. Proposed Workover Program During the 2018 calendar year, Hilcorp anticipates completing up to 24 well workovers with the ASRI rig and 1 well workover with the Doyon 14. C. Major Facility Projects Key facility projects anticipated to be undertaken during 2018 include: • L Pad power upgrade to supply power to Moose Pad • E -Pad infrastructure upgrades to support drill wells • Moose Pad — installation of pipelines and facilities IV.