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Home My WebLink About2018 Endicott Oil PoolHilcorp Alaska, LLC April 1", 2019 Dan Seamount, Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 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: DUCK ISLAND UNIT, ENDICOTT FIELD, ENDICOTT OIL POOL, STATE OF ALASKA, 2018 ANNUAL RESERVOIR REVIEW Dear Commissioner Seamount: APR 01 2019 A0GG In accordance with Conservation Order No. 462, Hilcorp Alaska, LLC ("Hilcorp"), as Operator, hereby submits for your review the following Annual Reservoir Review for the Endicott Field. This is the Annual Reservoir Review and corresponds to events during the 2018 calendar year. The Endicott Field has been on production since October 1987. A. Progress of Enhanced Recovery Project and Reservoir Management Summary During 2018, two new wells were sidetracked in the Duck Island Unit. The bottomhole location of the Duck Island Unit well 4-26A changed to the north of the original wellbore location, penetrating through the Kekiktuk 1<213 sand. The bottom hole location of the Duck Island Unit well 2-66A changed northeast of the original wellbore location, penetrating through the Kekiktuk Upper Subzone (UPSZ) FIII, FIV, & FV sands. Production and injection statistics are summarized in Table 1. Average daily oil production from the Endicott Oil Pool was 6,720 bopd and average daily gas injection was 334.4mmscfpd. During 2018, injected fluid was calculated to be 8,928 thousand -reservoir barrels (MRB) less than reservoir voidage. At year end, the reservoir overall cumulative voidage replacement ratio was 0.93. The average reservoir pressure varies between zones. The average of surveys run in 2018 was 4,281psia. Hilcorp became the official operator of the Endicott Field effective November 18, 2014. As a result, the historic reservoir simulation model developed by the previous operator will no longer will be utilized in the enhanced recovery or reservoir management. Hilcorp will continue to identify and improve waterflood pattern efficiency by allocating existing water injection volumes and adding perforations in active injection wells. Hilcorp will progress modeling of the Kekiktuk 1(26 reservoir accessed from SDI. The model will be used to determine potential additional attic oil recovery with lean gas injection. Table 1: ENDICOTT FIELD 2018 OVERVIEW STATISTICAL SUMMARY WELL STATISTICS As of 12/31/2018 Full year (1) As of Dec -18 (2) Producers 60 59 Injectors 26 25 NOTES: (1) Well count data reflects ONLY those w ells w hich contributed to production/injection during the respective year (2) Active wells as of December 2018 PRODUCTION/INJECTION STATISTICS Cumulative Start - Up through Production 2018 12/31/18 Oil (1313L) 2,452,908 476,798,554 Gas (MCF) 122,042,399 3,533,680,610 Water (B BL) 80, 703,158 1, 749, 548, 930 Injection Water (BBL) 81,311,896 2,093,851,090 Gas (MCF) 109,518,197 3,142,513,484 Balance Cum Production (MRB) 159,257,783 4,557,332,846 Cum Injection (MRB) 131,796,063 4,201,123,352 Over/Under(MRB) -27,461,720 -356,209,494 DAILY AVERAGE RATE DATA 2018 Production Oil, BOPD 6,720 Gas, MCF/D 334,363 Water, BWPD 221,105 Injection Water, BWPD 222,772 Gas, MCFPD 300,050 AVERAGE RESERVOIR PRESSURE Average of surveys obtained in 2018 4,281 psia B. VoidaE!e Balance by Month of Produced Fluid and Injected Fluids - 2018 Produced Fluids Total Water, Voidage, Year Cum since Month Oil, RR Free Gas, RS MRS MRS Cum, MRS start-up, MRS Jan -2018 299,387 7,526,713 6,938,046 14, 764,146 14, 764,146 4, 412, 839, 210 Feb -2018 266,754 6,716,679 6,222,062 13, 205, 495 27, 969, 641 4,426.044.705 Mar -2018 272,559 7,354,063 6,737,281 14, 363, 903 42, 333, 544 4, 440, 408.608 Apr -2018 246,708 6,123, 632 5,657,653 12, 028,192 54, 361, 737 4, 452, 436, 600 May -2018. 256,714 5,940,122 5, 876, 406 12, 073, 243 66, 434, 979 4, 464, 510, 043 Jun -2018 271,315 7,001,771 6,826,098 14, 099,183 80, 534,163 4.478, 609, 227 Jul -2018 279,802 6,847,642 7,088,511 14, 215, 955 94,750,118 4, 492, 825,182 Aug -2018 292,671 7,118,103 7,292,353 14, 703,126 109, 453, 244 4, 507.528, 308 Sep -2018 275,384 6,576.874 6,376,790 13, 231, 047 122, 684, 291 4, 520, 759, 355 Oct -2018 279,329 6,899,712 7,031,714 14,210,755 136,895,047 4,534,970,111 Nov -2018 284,453 7,021,232 7,270,626 14, 576, 310 151, 471, 356 4, 549, 546, 420 Dec -2018 288,802 6,991,214 7,383,421 14, 663, 437 166,134, 793 4, 564, 209, 857 3,313,879 82,117,757 80,703,158 166,134,793 Page 2 Injected Fluids Total Formation Water, Injection, Year Cum since Gas, MRS MRB MRS Cum, MRS start-up, MRB 6,888,146 6,966,652 13, 654, 797 13, 854, 797 4, 098, 583,239 6,135,934 6,277,340 12,413,274 26,268,071 4,110,996,513 6,704,220 6,794,899 13, 499,119 39,767,191 4,124,495.632 5,570,733 5,718,558 11, 289, 291 51, 056, 482 4,135, 784, 924 5,407,968 5,920,848 11,328,816 62,385,298 4.147,113.740 6,402,549 6,887,199 13,289,748 75,675,046 4,160,403,488 6,234,503 7,147, 644 13, 382, 347 89, 057, 393 4,173,785, 835 6,498,858 7,336,620 13, 835, 478 102, 892, 872 4,187.621.314 5,983,116 6,437,974 12,421,090 115,313,961 4,200.042,403 6,281,132 7,078,662 13, 359, 794 128, 673, 755 4,213,402 197 6,383,360 7,316,060 13,699,420 142,373,175 4,227,101,617 6,343,265 7,429,240 13, 772, 505 156,145, 680 4, 240, 874,121 74,833,784 81,311,896 156,145,680 (Injection - Production) Net Cum since Injection, Year start-up, MRS Cum, MRS MRS -909,349 -909,349 -314,255,971 -792,221 -1,701,570 315,048,192 -864,784 -2, 566,354 -315,912,976 -738,901 -3,305,255 -316,651,877 -744,427 -4,049,681 -317,396,303 -809,435 -4,859,117 -318,205,739 -833,608 -5,692,725 319, 039, 347 -867,648 -6,560,373 -319,906,995 -809,957 -7,370,330 -320,716 952 -850,962 -8,221,292 -321,567,914 -876,890 -9,098,182 -322,444,603 -890,932 -9,989,114 -323,335,736 -9,989,114 C. Summary and Analysis of reservoir pressure surveys within the pool The following key wells in the Endicott Pool were proposed in 2018; 2018 Key Well Program 1-01 K2A, K2B 2-70 K313, K3C 4-42 K3C 1-17A K3A 3-05 K3B 1-11 Ivishak 2-22 K3A, K3B, K3C 3-47 K3B, K3C 2-56A Sag River- Eider 2-40 K3B, K3C 4-38 K2A, K2B 4. Field and Pool'. Endicott Held/Endicott Oil Pool Endicott Oil Pool Datum: -10,000 ssTVD Eider Oil Pool Datum: -9,700 ssTVD Static bottomhole pressures collected in 2018 are summarized and submitted quarterly on the form 10-412 form below. Wells 2-56A survey was not possible due to wellbore conditions preventing inability to deploy gauges, via slickline, below 3,100'MD and was deferred to Q1 2019. The planned survey of the 4-42 well was delayed due to ongoing RWO operations. Page 3 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator: Hlcorp Alaska, LLC 2. Address: 3800 Centerpoint Or Suite 1400, Anchorage AK 99503 3. Unit or Lease Narre Duck Island LhiVEndicott 4. Field and Pool'. Endicott Held/Endicott Oil Pool 5. Datum Reference: -10000 6. Oil Gravity: 22 7. Gas Gravity: .88 8. Well Name and Unrber 9. AR hlirrber 50� NO DASHES 10. Type See Instructions _ 11. AOGCC Pool Cade 12. Zone 13. Perforated 14. Final Test 15. Shut -In 16. Press. Intervals Top Date T, meFours Surv. Type Bottom NDSS (see instructions for codes 17. B.H. Temp. 18. Depth Tool NDSS 19. Hirai Observed Pressure at Tool Depth _ 20. Datum 21. Pressure 22. Pressure at NDSS (input) Gradient, psi/ft. Datum(cal)psig u 1-09A 50029217430100 GI 220100M K2A, K213 10052'-10,167' 7/7/2018 13,859 SBHP 210 1 9,850` 3,983 1 10,000 0.11 3,999 1-11 50029221070000 O 220150 IHshak 10028'-10,114' 6/30/2018 70,863 SBHP 211 10,000 3,699 10,000 0.44 3,699 2-22 50029219310000 WI 220100 K3A,K3B,K3C 9930'-10,333' 7/5/2018 121 SBHP 182 10,000 5,708 10,000 0.45 5,708 2-64 50029220550000 WI 220100 K3C 10,125'110,301' 4/17/2018 3,689 SBHP 189 10,000 4,035 10,000 0.44 4,035 2-70 50029218990000 WI 220100 K3B, K3C 9988'-10,321' 2/1/2018 22,740 SBHP 196 10,000 4,150 10,000 0.45 4,150 3-23A 50029216450100 O 220100 K2B,K3A 9,830'-9,922' 6/30/2018 632 SBHP 211 10,000 4,093 10,000 0.40 4,095 1-17A 50029221000100 O 220100 K3A 9,998-10,184' 6/4/2018 74.9 SBHP 213 10,000 1,997 10,000 0.39 1,997 4-38 50029224820000 O 220100 K1,K2AK2B 9,932'-10,179' 8/28/2018 883.2 SBHP 214.8 9,900 3,829 10,000 0.12 3,841 3-47 50029215690000 WI 220100 K3B, K3C 9,939'-10,307' 6/3/2018 2,845 SBHP 199 10,000 4,330 10,000 0.43 4,330 Comments: 23. All tests reported herein were made in accordance with the applicable rules, regulations and instructions of the Alaska Oil and Gas Conservation Comrission. I hereby certify that the foregoing is true and correct to the best of my know ledge. Signature Title Printed Name Chris Kanyer Dale Reservoir Engineer April 1, 2019 Wells 2-56A survey was not possible due to wellbore conditions preventing inability to deploy gauges, via slickline, below 3,100'MD and was deferred to Q1 2019. The planned survey of the 4-42 well was delayed due to ongoing RWO operations. Page 3 The following key wells in the Endicott Pool will have static bottomhole pressure measurements captured in 2019; 2019 Key Well Program 1-09A K2A, K2B 2-64 K3C 4-38 K2A, K2B 1-17A K3A 2-70 K3B, K3C 4-42 K3C 2-14 K3A 3-47 1<36, K3C 1-11 Ivishak 2-22 K3A, K3B, K3C 4-38 K2A, K2B 2-56A Sag River - Eider Endicott Oil Pool Datum: -10,000 ssTVD Eider Oil Pool Datum: -9,700 ssTVD D. Summary and Analysis of Gas -Oil Contact or Gas Monitoring Surveillance Plan. The following table summarizes the results of the logs run in 2018 for gas monitoring. END 2018 GOC Monitoring Program Well Location Log Type Log Description Date Log Results 2-66A MPI Gas Saturation Log CCL/GR/Press/Temp/Sigma 12/29/2015 No GOC observed in all Kekiktuk reservoirs Using the 2018 RST tog results andsome observations from the 2018 production, the current MPI K28 GOC is estimated at-9,987'ssTVD. A field wide current GOC is not likely to be identified as the Kekiktuk sands have several subzones that are vertically separated and have different permeability. In addition, faulting in the reservoir may lead to hydraulic isolation or partial pressure communication within a sub zone. Using recent RST log results and some production observations, the current GOC can be as deep as 10,077'ssTVD. Planned logging of the 1-29 well was delayed to 2019 due to an unsuccessful RWO to return this well to service. E. The Following Year Gas -Oil Contact or Gas Monitoring Surveillance Plan. In 2019, we will run at least one cased hole pulsed neutron logs. Planned well is the 1-29 production well to monitor GOC and any potential remaining oil zones following additional rig intervention/workover. Additional candidates may be identified and logged to continue GOC surveillance of the Endicott Oil Pool. F. Results and Analysis of Production and Injection log surveys, tracer surveys, observation well surveys and any other special monitoring There were no new production profiles were obtained in 2016. The concentration of surveillance work focused on obtaining static bottom hole pressure measurements during the 21 day full -facility turnaround (TAR). Sampling from the previous waterflood tracer program has been discontinued. No current tracer program is in place. G. Future Development Plans & Review of Annual Plan of Operations and Development In 2018, Hilcorp increased unit production through sidetracking existing long term shut in wells, well intervention projects, and other optimization opportunities. The ongoing field study of the Duck Island Unit ongoing updates Page 4 with additional well intervention results, including new LWD data from recent drill wells. The re -mapping of all encountered horizons, analyzing production and injection data, and geophysical work is ongoing. Some additional wellwork was initiated due to data provided by surveillance activities, summarized below. Protects completed during the 2018 calendar year: • SDI 4-46 (Prod) — Endicott Oil Pool — Kekiktuk K2A RWO (Sept. 2018); and • MPI 2-50 (Prod) — Endicott Oil Pool — Kekiktuk UPSZ FV/FIV/FIII RWO o Failed to meet objective, loss of lower wellbore integrity, unable to run completion • MPI 1-29 (Prod) — Endicott Oil Pool — Kekiktuk K2A RWO. o Completed gas shutoff in liner, ran completion, lost casing integrity • Water/gas flood maintenance work o Run several static BHP surveys to identify unhealthy water flood patterns o SDI 3-09A (Prod) — Endicott Oil Pool — Kekiktuk K2B Coil Water shutoff (Feb. 2018); o SDI 3-15 (Prod) — Endicott Oil Pool — Kekiktuk K2B Coil Water shutoff (Feb. 2018); o SDI 4-38 (Prod) — Endicott Oil Pool — Kekiktuk K2A Coil Gas shutoff (Feb. 2018); o SDI 3-25B (Prod) — Endicott Oil Pool — Kekiktuk K2A Coil Gas shutoff (April 2018); • SDI 4-26A (Prod) Sidetrack — Endicott Oil Pool — Kekiktuk K213 o Sidetracked LTSI well to attic oil pay target. o Remediation of poor cement quality across the Kekiktuk reservoirs in progress. • SDI 2-66A (Prod) Sidetrack— Endicott Oil Pool — Kekiktuk UPSZ FV/FIV. o Sidetracked LTSI well to bypassed traditional oil pay targets. • Made separation train water removal improvements to increase water handling—20,000bwpd In 2019, Hilcorp will pursue increased unit production through additional well intervention projects, any necessary infrastructure and facility repairs, and other optimization opportunities as they arise. Workover activities are tentatively planned with the ASR#1 rig at Endicott for Q2 -Q4 2019 calendar year. Coil tubing, and other rigless interventions and planned throughout the year. Projects planned for the 2019 calendar year: Add Perfs in existing production wells o Add perf in bypassed or laminated pay in Endicott Oil Pool. o Identify additional oil pay with gas saturation logging Perform WSO/GSO o Identify excessive water or gas production with PPROF/RST logging o Perform water/gas shut off using wireline/coil. Perform water/gas flood maintenance work o Run several static BHP surveys or IPROF logs to identify unhealthy water flood patterns o SDI 4-42 (PROD) RWO - Endicott Oil Pool - Kekiktuk UPSZ. ■ Conversion to WINJ to support active SDI 4-14A (PROD) ■ Pull tubing, patch casing, run completion and begin water injection. o SDI 3-09A (PROD) RWO - Endicott Oil Pool - Kekiktuk K213. ■ Conversion to GINJ to support active SDI 3-15, 3-23A, 3-31, 4-26A wells (PROD) ■ K213 attic GINJ modeling currently under evaluation. ■ Pull tubing, run completion, and begin gas injection. o Reallocate water injection in existing injectors. MPI 1-29 (PROD) RWO - Endicott Oil Pool - Kekiktuk o Pull tubing, patch casing, run completion and begin production. MPI 1-49 (PROD) RWO - Endicott Oil Pool - Kekiktuk UPSZ Page 5 o RWO feasibility currently under evaluation. o Pull tubing, fish lower completion, run completion and begin production. • MPI & SDI - possible additional RWO(s) opportunities will be evaluated, and possibly executed. Hilcorp will continue to progress the field study of the Duck Island Unit. This may include re -mapping potentially productive horizons, updating well histories, reviewing all production and injection data, material balance calculations, and reviewing results of recent well intervention projects. Sincerely, Chris Kanyer Reservoir Engineer - Endicott Page 6