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Home My WebLink About2018 Deep Creek UnitHileorp Alaska, LLC April 1, 2019 Jesse Chmielowski, Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7 1 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: DEEP CREEK UNIT, HAPPY VALLEY FIELD, STATE OF ALASKA, 2017 ANNUAL RESERVOIR REVIEW Dear Commissioner Chmielowski: APR 01 2010 In accordance with Conservation Order No. 553, Hilcorp Alaska, LLC ("Hilcorp"), as Operator, hereby submits for your review the following Annual Reservoir Review for the Happy Valley Field. This is the 14`h Annual Reservoir Review and corresponds to events during the 2018 calendar year. Note that the Happy Valley Field has been on production since November 2004 and the cumulative production as of 12/31/2018 is 36.7 BSCF with an average rate of 4633 MSCFD in December 2018. Sincerely, Anthony McConkey Reservoir Engineer Reservoir review items per C0553 rule 4 a) Summary and analysis of reservoir pressure by major formation Because all of the Happy Valley wells have commingled production (from numerous sands), it is difficult to obtain precise individual sand reservoir pressures. Estimates can be made by reviewing pressures in wells with only one major zone open. The most recent shut-in wellhead pressures of wells with a single primary producing zone were compared to previous surveys (to verify fluid level for correcting to datum pressure using a gas gradient of .03 psi/ft) are shown below. well op perf depth major fm P_datum P datum_depth(tvdss) HVA -01 7,155 Lower Tyonek 1547 1007 12/31/2018 HVA -08 4,964 Beluga 869 702 11/10/2018 HVB-13 3,798 UpperTyonek 1037 978 07/23/2018 HVB-14 1,689 Sterling 429 245 12/04/2018 HVB-15 2,812 Upper Beluga 572 192 8/1/2018 The resulting average reservoir pressure by major zone is shown below. Since B-13 is commingled with the Beluga sands, the value used for Upper Tyonek pressure at datum was pulled from the latest SITP in an Upper Tyonek-only producing well — which in this case was HVA -09. Happy Valley Major formations Sterling Upper Beluga Beluga Upper Lower Tyonek Tyonek datum_depth(tvdss) 2000 3500 5000 7500 9000 init P datum(psig) 860 1505 2150 3225 3870 2018 P datum (psig) 572 869 T 1037 1547 b) Workovers & surveys of the existing wells. a. No new drillwells were brought online in 2018. b. No workovers were conducted in 2018. i. Downhole surveys were run on multiple wells. PT surveys were run on HVA -02, HVA -08, HVA -09, HVB-13, & HVB-15. A PLT survey was run on HVA -10. Page 2 c) Production for 2018 Calendar Year (sub -divided by major formation) Well 2018 Cumulative Production, Mscf Happy Valley Tract Happy Valley PA Sterling Upper Beluga Beluga Upper Tyonek Lower Tyonek HVA -01 0 0 HVA -02 56,200 56,200 HVA -03 0 HVA -08 94,634 23,659 70,976 0 HVA -09 64,819 0 64,819 0 HVA -10 322,119 0 322,119 0 HVA -11 0 0 0 0 HVB-12 374,059 0 151,750 222,309 HVB-13 62,633 5,657 56,976 0 HVB-14 45,488 45,488 HVB-15 378,869 378,869 HVB-17 466,389 466,389 Cum Gas Volume (MCF) 1,865,210 45,488 378,869 29,316 666,639 744,898 d) Progress and tests to expand pool productive limits: No new exploration and development wells were drilled by Hilcorp in the Happy Valley PA. Attachments: 1. HVA -09 PT Results 2. HVA -02 PT Results 3. HVB-13 PT Results 4. HVB-15 PT Results Page 3 Report date: 3/29/2019 Hilcorp I Well: IHVA#02 I Field: I Happy Valley 09/07/2018 Report date: 3/29/2019 Pressure (psia) 100 125 150 175 200 225 250 275 0 Pressure -Temperature Profile - - — -- - -- -------------------------— ------ -- --- 1. Going in hole to 9365' RKB _ --- -------- -- ---- 2. Well Flowing 1000 - —- 2000 -- - - -- ----------- 3000 ------ -- 4000 — -------- ------------------------ -------------- --------------------- - ---- -- ------ -- — -- - m- - - - ........-......... - — - - - ------------------------------------------------ ------- ....... -- - -----.--..-............. - - . - -- -- -- - - -- ----- - -- _._......... ----- - -- +,_ CD 5000 _ - -- ----- --- -------------------------------------------------------------------- -------------------------- ------ --- -- - - �.. _- - - ++ -- - 6000 7000 - - -- 8000 -- --- -- -- - - - - - - - ..._--_ --- 9000 - -_ - - -- 10000 - - - 40 60 80 100 120 140 160 Temperature (Deg. F) Pressure — Perfs x PKRTemperature Report date: 3/29/2019 Hilcorp I Well: IHVB#13 I Field: I Happy Valley 09/08/2018 Report date: 3/29/2019 Pressure (psia) 0 50 100 150 200 250 300 350 400 0 -- — -- - -- - - -- --- .. Pressure -Temperature Profile - - - = 1. Goin in hole to 7020' RKB 9 - -- __ - - 500 - - _- -- 2. Well Flowing — 1000 1500 - -- --------------- --------- - - -- - ---------------------------------------- ---- - -------- -- - - -- - -- -- --- -------- - - ------------ -------------------------- ------- --- ----- --- -- - - - — ------------ ---- -------- ----------- ------------------------- - - ---- - 2000 2000 - .............. - -- — --------- - - ----------------- _- ----- ------------------ ---- --------- ---------------------------- -------- - - --- - - - - ---- 2500 -- --- --- -- - - --- --------- --------- - ---- 3000 - - - -- -- m - -- - -- - — — - - 3500 — - — - +, — - .. - - .:_.:-.:-- - w - -- — -- — - 4000 - - -- .......... CL— — --- — — — --- — -- 4500 -- 5000 — -- -- - 5500 5500 -------------- --- - - ..-------------------- --- --- —---------- -- ------------------- - --------- --------------_... — ------------ ----- ----- ------ ---- 6000 - — - 6500 ---- — 7000 -_ - - --- _... ------------ ---- ----- ----- ------- boom— 7500-- ------------------ ---------- --------- - - ------------------ 40 50 60 70 80 90 100 110 120 Temperature (Deg. F) Pressure — Perfs Temperature Report date: 3/29/2019 Hilcorp I Well: HVB-15 I Field: Happy Valley 09/07/2018 Pressure (psia) 61 62 63 64 65 66 0 - Pressure -Temperature Profile ---------- - 1. Going in hole to 2481' RKB 2. Well Flowing 250 — 500 750 1000 Y - - Q 1250 y-- qL a m -- ---------- -------------- 1500 ------- - -- IL 1750 2000 ----- ---- - — ------------------------ 2250----- IL 2500 45 50 55 60 65 Temperature (Deg. F) Pressure - PerfsTemperature Report date: 3/29/2019