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Home My WebLink About2017 Northstar Oil PoolHilcorp Alaska, LLC April 2nd, 2018 Hollis French, Chairman Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 REC'EIVED APR 0 2 2018 AOGCC Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 1400 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, 2017 ANNUAL RESERVOIR REVIEW Dear Commissioner French: 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 17th Annual Reservoir Review and corresponds to events during the 2017 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 2017, 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 Oil Pool was 4,885 bopd and average daily gas injection was 439.8 mmscfpd. The reservoir voidage balance values reported do not include oil production from Outside the Northstar Oil Pool. The outside pool production includes satellite well NS34A or Kuparuk zone production from wells NS -08 and NS -18. Also Kuparuk production from NS -15 beginning August 2017. During 2017, gas injection was calculated to be 46,972 thousand -reservoir barrels (MRB) more than reservoir voidage. At year end, the reservoir overall cumulative voidage replacement ratio was 1.040. The average of reservoir pressure control for 2017 was 5,174 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 refocused efforts for a Kuparuk reservoir simulation model during 2017. Table 1: NORTHSTAR FIELD 2017 OVERVIEW STATISTICAL SUMMARY WELL STATISTICS Produced Fluids As of 12/31/2017 Full year (1) As of Dec -17 (2) Producers 15 14 Injectors 10 9 NOTES: (1) Well count data reflects ONLY those wells which contributed to production/injection during the respective year (2) Active wells as of December 2017 PilotiPurge PRODUCTION/INJECTION STATISTICS Cumulative Start - Up through Production 2017 12131/17 Oil (BBL) 1,783,017 168,485,617 Gas (MCF) 160,510,439 2,370,3171768 Water (BBL) 4,533,597 681082,965. Injection Water (BBL) into NS10 & NS32 Disposal Well 4,533,597 73,559,566 Gas (MCF) 192,294,378 2,623,732,620 Balance (excludes satellite tae// NS -34A and NS08 & NS -18 Kup oil Production) Cum, Cum Production (MRB) 595,977 1,712,789 Cum Injection (MRB) 642,949 1,780,463 Over/Under(MRB) 46,972 67,673' DAILY AVERAGE RATE DATA 2017 staR-up, MRB MRB Production MRB MRB Oil, BOPD 4,885 MRB Gas, MCF/D 439,755 397 Water, BWPD 12,421 10,763 Injection 1,612.970 10,629 Water, BWPD 12,421 12,150 Gas, MCFPD 526,834 1,387 AVERAGE RESERVOIR PRESSURE Fec-2017 369 Average of surveys obtained in 2017 5,174 psia B. VoidaEe Balance by Month of Produced Fluid and Injected Fluids - 2017 Page 2 Produced Fluids Injected Fluids Net rte on (Injection - Production) PilotiPurge Total Formation /Flare & Total Year Cum since Net Year Cum since Water, Voitlage, Year Cum since Gas, Import Injection, Cum, start-up, Injection, Cum, slartap, Month Oil, MRB Free Gas, MRB MRB MR8 Cum, MRB staR-up, MRB MRB Gas, MRB MRB MRB MRB MRB MRB MRB Jan -2017 397 10,366 447 10,763 10,763 1,612.970 10,629 1,521 12,150 12,150 1,662,452 1,387 1,387 49,483 Fec-2017 369 9,649 413 10,019 20,782 1,622,988 9,894 1,369 11,263 23,414 1,673,716 1,244 2,632 W, 727 Mar -2017 392 10,708 457 11,100 31,881 1,634,088 10,967 1,479 12,446 35,8W 1,686,162 1347 3,979 52,074 Apr -2017 367 10,173 436 10.541 42,422 1,644,629 10,417 1,400 11,817 47,677 1,697,979 1,276 5,255 53,350 May -2017 449. 9,534 437 9,983 52,405 1,654,612 9,832 1,356 11,187 56,864 1,709,166 1.204 6,459 54,555 Jun2017221 7,384 371 7,604 W,W9 1,682,216 7,530 1,255 6,785 67,649 1,717,951 1,180 7,640 55,735 Jul2017131 8,389 390 8,519 68,529 1,670,735 8,475 1'409 9,884 77,533 1,727,635 1,364 9,W4 57,100 Aug -2017 280 8,342 390 8,623 77,152 1,679,358 8,528 1,312 9,840 87,373 1,737,675 1,218 10,222 58,317 Sep -2017 387 8.350 350 8,737 85,688 1,688,095 8,506 1,864 10,471 97,844 1,748,146 1,734 11,956 60,051 Oct2017331 7,349 356 7,680 93,569 1,695,775 7,M9 2,W3 10,372 108,216 1,758,518 2692 14,647 62,743 Nov2017 336 8,154 294 8,490 102,058 1,704,265 8,376 2672 11,049 119,264 1,76,566 2559 17,206 65,302 Dec -2D17 331 8,103 423 8,434 110,492 1,712,69 8,323 3,090 11,413 130,677 1,780,979 2.979 20,185 68,281 2017 Totals 3,992 106,550 4,774 110,492 109,147 21,530 130,677 20,185 Page 2 C. Summary and Analysis of reservoir pressure surveys within the pool Static bottom hole pressures collected in 2017 are summarized below. STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator: Hkorp Abska, LLC 2. AOdness: I 3800 Rnterpoint G Sule 1400, Anchorage AK 99503 3. Wit or Lease Name: Nalhstar Ung 4. Field and Pool: Northitar Fiel4/ inanhstar Pl B Kuaamk Oil Pool S. Return Mere nce: -11,1090-9,o00 6.09Grevhy: 44/47 7. Gas Grosily. 075 8, NAA Nene 9, Apr Wan,or antl Nnrber: 50� I40 DASHES 10, Type See Instructions 11. AOGOC 12. Zone 13. perforated POW OMe intervals Top 6o8omNW5 14. Final Test Rte 15, Shut- 16. press. In Time, Sure, Type Wore (see instructions for coadal 17. B.H. Terry 18, Rath Tool WMS 19. Foal Mserved pressure at Tool Depth 20, Rtun ND6S (input) 21. pressure Gradient psgft. 22. Pressure al Detum (c4psi9 NS -09 50029230520000 O 590100 Kishak 11,063'-11,085' 4/13/17 414.7 SBHP 247.8 10,855 5,106 11,100 0.08 5,126 NS -13 50029230170000 O 590100 Ivshak 11,056'-11,090' 4/14/17 1185 SBHP 249.2 10,800 5,143 11,100 0.10 5,173 NS -08 50029230660000 O 590150 Kuparuk 8,924'.$961' 5/8/17 53.9 SBHP 174 8,755 3,530 9,000 0.09 3,553 NS -07 5002923081W00 O 590100 Wshak 11,111'-11,125' 6/5/17 58.5 SBHP 253.4 10,900 5,151 11,100 0.10 5,172 NS -15 50029230730000 O 590100 Wshak 11,037'-11,087' 7/2/17 16404 SBHP 247.4 11,000 5,160 11,100 0.40 5,199 NS -34A 50029233010100 O 5901W INshak7Fitl 11,049'-11,091' 7/8/17 109.5 SBHP 252.1 11,100 4,986 11,100 0.42 4,986 NS -W 50029230880000 O 590100 Nshak 11,036'-11,155' 7/31/17 292.9 SBHP 252.6 11,027 5,156 11.100 0.10 5,163 NS -25 59029231810000 O 590100 Wshak 11,053'-11,203' 8/24/17 432.3 SBHP 224.5 11,090 51153 11,100 0.11 5,153 NS -14A 50029230260100 O 590100 Idshak 11,089'-11,092' 10/26/17 135 SBHP 253 11,000 5,227 11,100 0.10 5,227 NS -19 50029230520000 O 590100 Wshak 11118'-11,140' 11/27/17 211 SBHP 252 10,900 5,156 11,100 0.10 5,176 N5-15 50029230739000 O 590150 Kuparuk 9,062'-9,087' 9/17/17 26.6 SBHP 180.2 9,000 3,567 9,000 0.10 3,567 NS -15 50029230730000 O 590150 Kuparuk 8,940'-9,087' 9/21/17 117.6 SBHP 185.6 9,000 3,572 9,00) 0.10 3,572 These pressures have been included with the historical Ivishak reservoir pressure data and are graphically represented in the next figure. Page 3 • H505 • KS + NS!$ . pf5 • N$12 . N6'} - Pi56C - NSti • Nsti N541 . Ns*8 NstB Ns9 . NSP NsNsa - Nsav . Nsa - Nss . na2s . u^at. tism6i N58 N591 BfS]S AIS2bF +4YP.bg+PiC54uR 5250 5225 A 5200 a 0 5175 $ 5150 E 5125 i 5100 5075 o5050 5025 X71 4975 II I II11111111�1�1��11111IIIIll111111111111111111111111nlllllllllli1111111 II III I II1lI III l II II I lull I II IIII lilllllll II I11111111Illilllllllllll 1illl��l�. II1111��. Illllnil �� 01�1�1111�11111111n1�llllllll i �ll�lllllllllllllllllllllllnnllllllllllllllllllllll�� Illl lllllll I Ill PONPONPON1Ihli 111 llllll�lll�lllilllt�l, 11 Nil, i� INHIll 1111111i111i lilt 1►il��nll. IIIIIIIIIIIIIIIIII ,� Ii1 1I �lIi Inun,IIIJII nllll�i lllllll. Illlnlnllllllllllllllillillinlllllllllillll lilll l 11 11 l 11 11111111111111nlllllll111illllllllll'lll llllllllllllllllllll 11 Illll llnll III Il llllll IIIIIInllnllll1111i111111111111nlllllllilllllllllill lnlll 111 lil MVIT l llllllllllillllillllllillllllllllllllllllllll'1 -"WIT IllllllU _ _ The data shows an increase of reservoir pressure during 2017. The average Northstar field reservoir pressure for 2017 is 5,174 psia, up 58 psia from the 2016 average. Please note that the reported reservoir pressure of the well NS -08 and NS -18 during 2016 and NS -15 after August 2017 are from the Kuparuk Reservoir. D. Results and Analysis of Production and Infection log surveys, tracer surveys, observation well surveys and any other special monitoring No new Ivishak production profiles wer obtained in 2017. 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. 2017 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 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 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 2017 averaged 1.36 for oil, 0.91 for water and 0.93 for gas. Oil allocation factor was high due to allocation of NGL production. F. & G. Future Development Plans & Review of Annual Plan of Operations and Development In 2017, Hilcorp Maintained unit production through optimization opportunities. The field study of the Northstar Unit was continued. Well histories, production and injection data, material balance calculations, 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. This project was deferred for work on the Kuparuk reservoir model. The Ivishak model be revisited and refined for possible future development purposes. Page 5 Projects completed during the 2017 calendar year: • NS -13 - Converted high GOR producer into a gas injector in the Ivishak reservoir. • NS -15 - Performed RWO recompletion from the Ivishak reservoir to the Kuparuk (August 2017) In 2018, 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 2018 calendar year. The mobilization of a workover rig to the Northstar Island during the 2018 summer barging season is currently planned for the NS -13 recompletion to Kuparuk project. Projects planned for the 2018 calendar year: • Complete the 4th Stg Recycle Cooler Jumpers project to increase gas capacity in summer months to fully optimize existing cooler capacity. • Abandon the Ivishak reservoir in the NS -13 and recomplete to the Kuparuk A & C sands. Hilcorp will continue update 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 any well intervention projects in 2017/2018. Sincerely, Chris Kanyer Reservoir Engineer- Northstar Page 6 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator: Hilcom Alaska, LLC 2. Address: 3800 Centerpoint Or Suite 1400, Anchorage AK 99503 3. Unit or Lease Name: Northstar Unit 4. Field and Pool: Northstar Field/ Northstar Oil&Kupamk Oil Pools 5. Datum Reference: -11,100/-9,000 6. Oil Gravity: 44/47 7. Gas Gravity: 0.75 8. Well Name and Number: 9. API Number 50XXXXXXXXXXXX NO DASHES 10. Type See Instructions 11. AOGCC Pool Code 12. Zone 13. Perforated Intervals Top - Bottom TVDSS 14. Final Test Date 15. Shut-In Time, Hours 16. Press. Sum. Type (see instructions for codes) 17. B.H. Temp. 18. Depth Tool TVDSS 19. Final Observed Pressure at Tool Depth 20. Datum TVDSS (input) 21. Pressure Gradient, paint. 22. Pressure at Datum (cal)psig NS-06 50029230880000 O 590100 Ivishak 11,036'-11,155' 7/31/17 292.9 SBHP 252.6 11,027 5,156 11,100 0.10 5,163 NS-25 50029231810000 O 590100 Ivishak 11,053'-11,203' 6/24117 432.3 SBHP 224.5 11,000 5,153 11,100 0.11 5,153 NS-14A 50029230260100 O 590100 Ivishak 11,089'-11,092' 10/26/17 135 SBHP 253 11,000 5,227 11,100 0.10 5,227 NS-19 50029230520000 O 590100 Ivishak 11,118'-11,140' 11/27/17 211 SBHP 252 10,900 5,156 11,100 0.10 5,176 NS-15 50029230730000 O 590150 Kuparuk 9,062'-9,087' 9/17/17 26.6 SBHP 180.2 9,000 3,567 9,000 0.10 3,567 NS-15 50029230730000 O 590150 Kuparuk 8,940'-9,087' 9/21/17 117.6 SBHP 185.6 9,000 3,572 9,000 0.10 3,572 Comments: 23. 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 co ct to at of my knowledge. Signature Title �.. Title Reservoir Engineer Printed Name Chris Kanyer R(p ! /y _ E I Vi E Date March 29,2018 APR 0 2 2018 A0GCC Form 10412 Rev. 04/2009 INSTRUCTIONS ON REVERSE SIDE