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Home My WebLink About2018 Milne Point UnitAPR 01 2019 Milne Point Unit Waterflood and Reservoir Surveillance Report for Kuparuk River Oil Pool Schrader Bluff Oil Pool Sag River Oil Pool January through December, 2018 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 IA —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 2018 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 follo_win2 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 followin6 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 followinn 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 2018 is 610 MMSTB and cumulative gas injection is 112.4 BSCF. This data shows that the voidage replacement ratio averaged 0.72 RB/RB in 2018 compared to 1.04 RB/RB in 2017. The VRR went significantly below 1.0 due to loss of source water producing wells for more than 3 months during 2018. The VRR reduced 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-B presents the reservoir pressure data taken during 2018 for the Kuparuk River wells. In 2018, 8 static pressure readings were obtained in the Kuparuk River reservoir. Exhibit 1-A Exhibit 5-E Reservoir Voidage Balance Summary RESERVOIR VOIDAGE BALANCE January - December 2018 Kuparuk Pool Milne Point Unit Kuparuk Pool 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) (stblday) (mscf/day) (rbbl/day) (stb/day) (mscf/day) (rbbllday) Ratio (rbbl/day) 1/3112018 10,412 59,093 11,074' 79,213 60,700 4,004 65,043 0.82 -14,171 2/28/2018 10,295 64,244 10,122' 83,516 53,806 3,257 57,405 0.69 -26,111 3/31/2018 10,415 64,436 10,353' 84,021 54,207 3,039 57,625 0.69 -26,396 4/30/2018 9,680 60,484 11,330' 80,160 57,794 4,024 62,109 0.77 -18,050 5/31/2018 9,500 60,407 11,305 79,891 56,884 4,280 61,405 0.77 -18,486 6/30/2018 9,547 58,403 10,064 76,838 51,514 3,852 55,587 0.72 -21,251 7/31/2018 7,754 55,509 8,321 70,729 41,431 3,299 44,880 0.63 -25,850 8/31/2018 9,882 67,183 9,835 85,867 44,263 5,283 49,455 0.58 -36,412 9/30/2018 9,924 62,792 9,795' 81,414 45,356 4,704 50,068 0.61 -31,347 1 10/31/2018 9,962 58,798 10,000 77,572 43,887 4,615 48,501 0.63 -29,071 11130/2018 10,796 48,774 11,376' 69,357 51,764 4,769 56,627 0.82 -12,730 12/31/2018 10,557 59,142 12,370' 80,510 52,694 5,538 58,231 0.72 -22,280 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) 1/31/2018 322,775 1,831,886 343,301 2,455,615 1,881,713 124,136 2,016,326 0.82 -439,289 2/28/2018 288,260 1,798,844 283,409 2,338,452 1,506,577 91,196 1,607,332 0.69 -731,120 3/31/2018 322,860 1,997,524 320,944 2,604,656 1,680,416 94,222 1,786,372 0.69 -818,284 413012018 290,402 1,814,532 339,894 2,404,788 1,733,821 120,707 1,863,277 0.77 -541,511 5/31/2018 294,508 1,872,609 350,442 2,476,619 1,763,397 132,667 1,903,546 0.77 -573,073 6130/2018 286,405 1,752,093 301,928 2,305,135 1,545,412 115,.545 1,667,617 0.72 -637,517 7/31/2018 240,386 1,720,782 257,962 2,192,612 1,284,364 102,264 1,391,272 0.63 -801,340 8/31/2018 306,345 2,082,683 304,884 2,661,876 1,372,155 163,783 1,533,102 0.58 -1,128,773 9130/2018 297,720 1,883,753 293,844 2,442,429 1,360,674 141,122 1,502,028 0.61 -940,401 10/31/2018 308,807 1,822,743 310,002 2,404,726 1,360,508 143,062 1,503,522 0.63 -901,204 11/30/2018 323,873 1,463,231 341,272 2,080,719 1,552,910 143,070 1,698,817 0.82 -381,901 12/31/2018 327,282 1,833,417 383,479 2,495,820 1,633,525 171,667 1,805,150 0.72 -690,670 Average: 2018 9,894 59,939 10,495 79,091 51,192 47222 1,689,864 0.70 -715,424 Cumulative_ stb stb mscf rb stb mscf rb rb 31 -Dec -18 3,609,623 21,874,097 31831,361 ' 28,770,074 18,675,472 1,543,441 21,459,033 0.75 -7,311,041 Exhibit I -B Form 10-412 STATE OF ALASKA{ ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT Kuparuk Pool 1. Operator: 2. Address: H ilcorp Alaska LLC. 3800 Centerpoint Or. Anchors a AK 99516 3. Unit or Lease Name: Milne Point 4. Field and Pool: Ku p aruk R'ver Oil Pool S. Datum Reference: 70GW SS 6. Oil Gravity 23 7. Gas Gravity: 0.65 8. Well Name 9. API Number 10. Type 11. AOGCC 12. Zone 13. Perforated Intervals 14. Final 15. Shut- 16. Press. 17. B.H. 18. Depth 19. Final 20. Datum 21. 22. and Number 50XX C(XXXXXX See PQQI Cade Top - Bottom Tv`DSS Test Date In Time, Surv. Type Temp. Tool Observed TVDSS Pressure Pressure at XX NO DASHES Instruction Hours (see iVDSS Pressure (input) Gradient, Datum (cal) s instruction at Tool psifft. s for Depth A3,A21A 7165'7209,73282'- C-21 50029224860060 525140 1 7391' ?J1112019 LTSI SBHP 16S 6969" 1262 7CCC 0.43 1275 C,136, 7151'-7212',7229- A3,A2,A 7240',7244-7263',7274° MP L-04 50029220290060 0 525140 1 729T 81512018 2544 SBHP 1;? G 7026 ' 7 C C C C.4 2 3974 C,B6, 6597'-6608,661T- A3,A2,A 6624",6664'-6713",6721' R1P L-20 S0029227900000. 0 52514C 1 6744' 676"-576B'. 1(312012018 5808 SBHP 18G 4904' _'22� 7000' C,:2 .1411 C,B6, A3,A2,A 7139-7146,7149- IdP L-21 50029226290000 JI 525140 1 7200',723T-7305' 09109.2018 LTSISBHP 17' 7268° 3788 7CGC C.4' 3572 7024' -7036,704Z - MP F-05 5OG292276200GO 0 525140 A3,A2,A1I 706Z,7G6 "-708T WE 10)20181 LTSI SBHP 164 6710' 3306 7CCC 0.42 343G B6, A3,A2,A 7678° -7088',7124 - MPF -69 50029225860000 0 525140 1 720071187-7204' 8/2912018 LTSI SBHP 171 6934` 3_1' 7CCC C.<° 3642 i 7116 -7128',71a8' - 116"-7128',7138'-7147",7158'-7176, 714T,7159' -7176, MPF -79 500292248901GG 0 525140 A2A1 7172-7156' 01125/2018 792 SEHP 1% 6284' 33G5 7000' 0.43 3515 702-7036',7043- ( A3,A2,A 705T,7064° -7074%7046 - MP F-86 5002923019000 0 525140 1 7085' 4112+2018 316 SBHP 196 6723' 2277 7006' 0.43 2396 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 correct to the best of my knowledge. Signature Idle ReservoirEnginner i Printed Name Almas Aitkulov Date March 28, 2019 i 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 10.3 MSTBD for 2018 compared to 8.4 MSTBD in 2017 due to an active workover program and renewed development drilling. The water injection rate averaged 27.1 MBWD for 2018 compared to 28.9 MBWD in 2017. Cumulative water injection since waterflood startup through the end of 2018 is 9.9 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 2018. Cumulative gas injection through the end of 2018 remains as it was at year-end 2008: 220 MMSCF. During the 2018 calendar year, the cumulative under -injection increased by 4.3 MMRVB from - 25.3 MMRVB to 30.1 MMRVB. 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 are part of a polymer flood pilot that began in late mid 2018. In 2018 additional development was completed in the F&L pad areas via a 5 well Schrader Oa sand pattern development from F pad and an expansion of the L Pad Schrader Nb pattern drilled in 2017 with 3 additional wells. A polymer pilot also began in the fall of 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 2018. In 2018, 21 static pressures were obtained. Exhibit 2-A Reservoir Voidage Balance Summary Schrader Bluff Pool January - December 2018 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) 1/31/2018 9, 279 19,436 2,165 ' 30,072 25,705 0 25,962 0.86 -4,110 2/28/2018 9,858 19,638 2,184 30,764 27,945 0 28,224 0.92 -2,540 3/31/2018 10,413 19,655 2,567 31,763 27,816 0 28,095 0.88 -3,669 4/30/2018 11,282 19,748 2,475 32,420 28,484 0 28,769 0.89 -3,651 5/31/2018 10,722 18,453 2,294 30,410 28,500 0 28,785 0.95 -1,625 6/30/2018 10,100 19,532 2,767 31,674 28,264 0 28,547 0.90 -3,127 7/31/2018 9,136 18,104 2,144 r 28,583 23,956 0 24,195 0.85 -4,388 8/31/2018 11,390 21,410 2,609 34,372 27,562 0 27,838 0.81 -6,534 9/30/2018 10,786 20,218 2,689 32,801 26,593 0 26,859 0.82 -5,942 10/31/2018 10,348 19,708 2,317 31,412 25,986 0 26,246 0.84 -5,166 11/30/2018 10,602 14,491 2,336 26,372 25,229 0 25,481 0.97 -891 12/31/2018 10,086 18,435 2,160 29,697 29,464 0 29,759 1.00 62 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) 1/31/2018 287,647 602,526 67,109 932,235 796,858 0 804,827 0.86 -127,409 2/28/2018 276,027 549,875 61,151 861,396 782,451 0 790,276 0.92 -71,121 3/31/2018 322,808 609,303 79,575 984,666 862,311 0 870,934 0.88 -113,732 4/30/2018 338,470 592,445 74,263 972,601 854,513 0 863,058 0.89 -109,542 5/31/2018 332,397 572,028 71,125 942,715 883,499 0 892,334 0.95 -50,381 6/30/2018 303,005 585,969 83,022 950,207 847,929 0 856,408 0.90 -93,799 7/31/2018 283,216 561,219 66,465 886,079 742,632 0 750,058 0.85 -136,020 8/31/2018 353,079 663,695 80,877 1,065,530 854,419 0 862,963 0.81 -202,567 9/30/2018 323,566 606,537 80,676 984,031 797,791 0 805,769 0.82 -178,262 10/31/2018 320,776 610,944 71,831 973,770 805,565 0 813,621 0.84 -160,149 11/30/2018 318,069 434,730 70,072 791,154 756,857 0 764,426 0.97 -26,729 12/31/2018 312,671 571,479 66,973 920,599 913,385 0 922,519 1.00 1,919 Average.- verage:2016 2016 10,334 19,069 2,392 30,862 27,125 0 27,397 0.89 -3,465 Cumulative: stb stb mscf rb stb mscf rb rb 31 -Dec -18 3,771,732 6,960,749 873,139 or 11,402, 652 9,898,210 0 10, 096,174 0.89 -1,306,478 Exhibit 2-B Form 10-412 c t, A T2 t.,f4'D 1 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator: Hilcorp Alaska LLC 2. Address: 3800 Center Point Dr, Anchorage, AK 99503 3. Unit or Lease Name: Milne Point 4. Feld and Pool: Milne Point - Schrader Bluff 5. Datum Reference: 4000 6. Oil Gravity: 13-22 7. Gas Gravity: 0.56 8. Well Name and Number: 50� 9. AR Number 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. mess. Suv. Type (see instructions for codes 17. B.H. Temp.Tool,.S 18. Depth 19, Final Observed Pressure at Tool Depth 20. Datum TVDSS (input) 21. Pressure Gradient, psi/ft. 22. Pressure at Datum (cal) 1-03 500292206700 SBHP 525140 Na/Nb/Nc/Ne/0a/0b 4260-4510 7/31/2018 114 PIP 87 3464.00 1062.00 4000.00 0.41 1282 1-04A 500292206801 SBHP 1 525140 Na/Nb/Nc/Ne/Oa/Ob 3791- 4037 12/31/2018 11741 PIP 77 3666.00 1513.00 4000.00 0.41 1650 1-14 500292321400 SBHP 525140 Nb/Oa/Ob 3718- 3905 7/31/2018 114 PIP 80 3592.00 995.00 4000.00 0.41 1162 1-15 500292310600 SBHP 525140 Oa/Ob 3910-3975 7/31/2018 114 PIP 75 3321.00 1101.00 4000.00 0.41 1379 1-18 500292346100 SBHP 525140 Nb 3754-3781 12/31/2018 10104 rm DH Gau 84 3662.00 1905.00 4000.00 0.41 2044 1-18 500292346100 SBHP 525140 Oa 3893-3926 1 12/31/2018 10104 rm DH Gaul 87 3799.00 1969.00 4000.00 0.41 2051 1-18 500292346100 SBHP 525140 Ob 3963-3986 12/31/2018 10104 Brm DH Gaul 90 3890.00 2014.00 4000.00 0.41 2059 1-19 500292321800 SBHP 525140 Oa/Ob 3944-3990 4/22/2018 4176 PIP 75 3377.00 1218.00 4000.00 0.41 1473 1-19 500292321800 SBHP 525140 0a/0b 3944-3990 8/1/2018 137 PIP 82 3377.00 1188.00 4000.00 0.41 1443 1-19 500292321800 SBHP 525140 0a/0b 3944-3990 9/7/2018 91 PIP 88 3377.00 1193.00 4000.00 0.41 1448 1-11 500292303300 SBHP 525140 0a/0b 3497- 3612 8/1/2018 132 PIP 70 3485.00 1340.00 4000.00 0.41 1551 J -01A 500292207001 SBHP 525140 Oa/Ob 3952-4037 7/31/2018 118 PIP 75 3293.00 1247.00 4000.00 0.41 1537 J -09A 500292249501 SBHP 525140 Oa 3979-3984 12/31/2018 4320 PIP 74 3635.00 1645.00 4000.00 0.41 1795 J-26 500292320500 SBHP 525140 Nb/Oa/Ob 3749-3967 8/1/2018 130 PIP 80 3789.00 1358.00 4000.00 0.41 1445 J-26 500292320500 SBHP 525140 Nb/Oa/Ob 3749-3967 10/8/2018 124 PIP 79 3789.00 1331.00 4000.00 0.41 1418 H-16 500292322700 SBHP 525140 Oa/Ob 3872-3994 8/1/2018 133 PIP 79 3863.00 1226.001 4000.00 0.41 1282 H-19 500292337100 SBHP 525140 Oa 4067-4116 12/31/2018 38712 PIP 80 3917.00 1694.00 4000.00 0.41 1728 G-02 500292192600 SBHP 525140 Na/Nb/Nc 4005- 4061 12/31/2018 300 PIP 97 3657.00 1167.00 4000.00 0.41 1308 G-14 1 500292303100 SBHP 525140 Na/Nb/Ne/Oa/Ob 3929-4152 7/31/2018 113 PIP 83 3850.00 1062.00 4000.00 0.41 1124 G-15 500292278400 SBHP 525140 Nb/Nc/Oa/Ob 3984-4214 12/31/2018 18239 PIP 84 3927.00 1842.00 4000.00 0.41 1872 G-16 500292318900 SBHP 525140 Oa/Ob 4240-4382 7/31/2018 117 PIP 87 4153.00 1340.00 4000.00 0.41 1277 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 correct to the best of my know ledge. Signature Printed Name Reid Edwards Title Resemir Engineer Date March 29, 2019 Section 3 Sag River Oil Pool List of Exhibits Reservoir Voidage Balance 3-A 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 2018, Sag Oil Pool had 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 2018, and both new Sag wells, MPC -46 and MPB-30 were completed with fracture stimulation treatments. The Sag River Pool oil production averaged 616 STBD (average GOR of 1,365 SCF/BBL), and water production averaged 1241 STBD in 2018. Cumulative production through the end of 2018 is 3.5 MMSTB of oil, 3.93 BSCF of gas, and 3.32 MMSTB of water. The average Sag production rate in 2017 was 840 STBD. The decreases in 2018 was likely due to natural decline and no addition wells drilled in 2018. Exhibit 3-C presents the reservoir pressure data for the Sag River wells taken during 2018. Four pressure surveys were obtained. Exhibit 3-A Exhibit 5-E Reservoir Voidage Balance Summary RESERVOIR VDIDAGE BALANCE January - December 2018 Sag River Pool Milne Point Unit Sag Pool 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) (mscffday) (rbbllday) (stb/day) (mscflday) (rbbl/day) Ratio (rbbl/day) 1!3112018 716 1,281 1,135 3,081 0 0 0 0.00 -3,081 22812018 600 1,262 1,092 2,928 0 0 0 0.00 -2,928 3!31,12018 597 1,187 447 2,143 0 0 0 0.00 -2,143 4!30!2018 495 1,101 421 1,951 0 0 0 0.00 -1,951 513112018 677 1,185 722 2,503 0 0 0 0.00 -2,503 613012018 612 1,266 639 2,446 0 0 0 0.00 -2,446 713112018 456 1,293 504 2,209 0 0 0 0.00 -2,209 813112018 901 1,508 1,473 3,821 0 0 0 0.00 -3,821 9!3012018 586 1,305 11130 3,004 0 0 0 0.00 -3,004 1013112018 790 1,418 1,384 3,548 0 0 0 0.00 -3,548 1113012018 532 964 1,010 2,485 0 0 0 0.00 -2,485 1231!2018 431 1,117 1,153 2,722 0 0 0 0.00 -2,722 :Cumulative Production: Cumulative Injection: Oil WaterGas Reservoir Water Gas Voidage Voidage Voidage Month Cumulative Cumulative Cumulative Voidage Cumulative Cumulative Replacement Replacement Balance (stb) (stb) (mscf) (rbbl) (stblday) (mscflday) (rbbl) Ratio (rbbl) 113112018 22,202 39,704 35,178 95,515 0 0 0 0.00 -95,515 212812018 16,792 35,338 30,567 81,993 0 0 0 0.00 -81,993 313112018 18,502 36,782 13,866 66,448 0 0 0 0.00 -66,448 4/30/2018 14,842 33,028 12,627 58,543 0 0 0 0.00 -58,543 513112018 21,000 36,734 22,382 77,580 0 0 0 0.00 -77,580 613012018 18,355 37,988 19,179 73,387 0 0 0 0.00 -73,387 7.!3112018 14,121 40,091 15,613 68,481 0 0 0 0.00 -68,481 813112018 27,916 46,754 45,672 118,442 0 0 0 0.00 -118,442 9130!2018 17,570 39,164 33,886 90,108 0 0 0 0.00 -90,108 1013112018 24,483 43,955 42,895 109,996 0 0 0 0.00 -109,996 11.13012018 15,964 28,925 30,294 74,538 0 0 0 0.00 -74,538 12/3112018 13,354 34,629 35,755 84,396 0 0 0 0.00 -84,396 ; Average- 2018 616 1,241 926 2.737 0 0 0 0.00 -2,737 Cumulative_ stb stb mscf rb stb mscf rb rb 31 -Dec -18 225,100 453,091 337,914 951144 0 0 0 0.00 -951,144 Exhibit 1-11 1 0 A VI STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT S. Operator 2, Address: Hilcorp Alaska, LLC 3800 Cente oint Dr. Anchorage, AK, 99516 3. Unit or Lease Name: 4_ Field and Pool: Datum Reference 6.. Oil Gravity: 7. Gas Gravity: Milne Point Sag River Oil Pool 8750' SS 38 0.65 9. API Number 10. Type 11 _ 13- Perforated 16PressSurv. 15 Shut. _ 19. Final 18 . Observed 20Datum 21. 22_ 8. Well Name 5OXXXXXXXXXXXX See AOGCC 14. Final 12_ Zone Intervals . Type (see 17_ B..H_ In Time, Depth Pressure _ TVDSS Pressure Pressure and Number NO DASHES Instructio Pool Test Date Top - Bottom instructions for Hours Temp.. Tool at Tool (input) Gradient, at Datum ns Code TVDSS codes} TVDSS Depth psuii. (cal) MP S-90 50029232760000 PROD 525150 Sag A, B 8,791'-8.827' 12930/2018 144 DH Press Gauge 225 8.507 3520 8750 0.39 3615 MP B-30 50029235710000 PROD 525150 Sag A, B 8,926'-8,965' 912812018 312 DH Press Gauge 231 8728 1876 8750 0.37 1886 MP C46 50029235760000 PROD 525150 Sag A. B 8,728'-8,753' 12/1312018 696 DH Press Gauge 223 8493 2020 8750 0-39 2120 MP K-33 50029227290000 PROD 525150 Sag A, B 9,143'-9,162' 7/31,12018 144 Pres Gauge 225 7714 1479 8750 0.4 1893 23. All tests reported herein were made in accordance with the applicable rules, regulations and instructions of the Alaska Oil and Gas Conservation Commission. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Signature Title Reservoir Enginner Printed Name Almas Aitkulov Date March 28, 2019 Section 4 Production/Injection Well Surveillance List of Exhibits Milne Point Kuparuk Surveillance 1/1/2018 —12/31/2018 ►. . Milne Point Schrader Surveillance 1/1/2018 — 12/31/2018 4-B 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 2018.Five of 24 multi -zone injectors cannot be used for IPROF's due to mechanical issues. Eight injection surveys were obtained in 2018. All of these injection surveys were performed in multi -zone injectors. There were 18 existing unregulated Schrader Bluff multi -zone injectors in 2018, seven of which were shut in all year. Injection surveys were run in 4 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 2018. Exhibits 5-A & 5-13 are a summary of the Milne Point field well surveillance performed in 2018 on both Schrader and Kuparuk Pools. Exhibit 4-A Production/Injection 2017 Logging & Surveillance Kuparuk River Pool Well Name Reservoir Weill Type Rec Date Log Type Field Analysis Final Determination logging passes were unable to cover entire Kup A3 U2 perforation zones. Bathe spinners were fouled on the down 601pm 7% C,11% 1136, 0%, A31A2 83%. pass and werent included for Wit MPC -28A KUP WINJ 91212018 STMPROF calculations. Individual splits couldn-t be obtained for the B and C sand because the are located on the backside of the 3 V2" tubing 31% B&C sands, 69% A3 string. Aprox 31 Wow going into in BIC sands, 69% flow going to top of A3. No injection appears MPC -36 KUP WINJ 911/2018 STP11PROF entering A2. Injection splits were calculated using averaged spinner values across all passes. A&nm a' stoP 14% CIB, 59%, A3,27% A2, 0% Al. counts at some depth were MPF -99 KUP WITJi 1112412018 STP/lPROF below spinner threshold Downhole conditions created oscillating spinner responses for 6% CJB, 93%, A31A2, 1% Al MPL-16A KUP WINJ 12130/2018 STPIlPROF the slower 40 and 60 fpm passes. It appears the majority of fluid is MPE-05 KUP VIVINJ 51112018 STP/IPROF going into the perfs lower sand 27.5% C, 72.5%B7 sands. It appears the majority of fluid is going into the C sand. 63'46 C, 27%, B. IYIPE-07 KUP WINJ 5/1112018 STPIlPROF 100% of injected fluid appears Tobe passing into the lower 0%, C,100% B7 NIPE-23 KUP WINJ 612112018 STP/IPROF perforations Recorded data show no evidence of fluid injection at either GLM. All fluid appears to 0%, CS IGO% B7 MPE-26 KUP WINJ 812412018 , STPA PROF 1 be exiting the end of tubing Exhibit 4-13 Production/Injection 2017 Logging & Surveillance Schrader Bluff Pool Well Name Reservoir Well Type Rec Date Log Type Field Analysis Final Determination No spinner data as they were fouled with debris. Not 1-12 SBL INJ 6/26/2018 IPROF enough data for analysis Oa - Na , Ob - Na Spinner data indicates 10% of fluid injected in Nb sands, Nb - 10%, Ne - 0%, H-17 SBL INJ 6/24/2018 IPROF and 90% below Ne sand Oa - 90% No spinner data as they were fouled with debris. Temperature profile indicates no fluid into Nb sands or Oa sands, all Nb - 0%, Oa - 0%, J-15 SBL INJ 1/8/2018 IPROF injection into Ob Ob - 100% No spinner data as they were fouled with debris. Not 5-04 SBL INJ 6/28/2018 IPROF enough data for analysis Oa - Na , Ob - Na Section 5 Shut in Well Status List of Exhibits Milne Point Shut in Well Status 1/1/2018 — 12/31/2018 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 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 2018. 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. The B -Pad VSRD was removed from service in 2017, when a traditional test separator was returned to service. For the 2018 year, all G -Pad and S -Pad wells were allocated from the VSRD well tests except for G-18, which was allocated using a contractor portable test separator. 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. Exhibit 6-B Well Test Frequency - By Pad/Oil Pool 6B - Well Test allocation factors by month Milne Point Unit Dates Average of Oil Factor Average of Water Factor Average of Gas Factor 01/31/2018 0.8264226690 1.0859451538 0.897631008 02/28/2018 0.8017139841 1.1218464536 0.856514541 03/31/2018 0.8151853121 1.1200131110 0.833746613 04/30/2018 0.7987172405 1.0834171753 0.994045978 05/31/2018 0.7748270532 1.1085327395 1.018090682 06/30/2018 0.7930847490 1.1074094774 0.999116195 07/31/2018 0.7585317436 1.2601093911 0.937816097 08/31/2018 0.7999319715 1.2365803390 0.927043098 09/30/2018 0.8123780468 1.2329549443 0.939490946 10/31/2018 0.8263827591 1.1619005441 0.926837671 11/30/2018 0.8630660497 0.9522215852 0.961394499 12/31/2018 0.7686176096 1.1410892896 0.942509288 2018 Well Tests by Pad Name Avg. Tests Per Month MPU Pad B General 10.59 MPU Pad C General 12.20 MPU Pad E General 9.56 MPU Pad F General 5.17 MPU Pad G General 14.28 MPU Pad H General 6.00 MPU Pad I General 15.00 MPU Pad J General 6.91 MPU Pad K General 11.70 MPU Pad L General 7.37 MPU Pad S General 7.06 Formation Name +,g. Test, Per Month MPU Kuparuk PA (MLN 12.20 MPU Sag ADL 25516 (MP17) 6.42 MPU Sag ADL 380109 (MP18) 5.18 MPU Sag ADL 47434 (MP16) 6.27 NPU Sag B-030 ADL 47437 7.13 NPU Sag/Und ADL 375132 (MP03) 12.35 MPU Schrader Bluff PA (SCHR) 15.00 Exhibit 6-C Well Test Frequency - By Well Kuparuk Oil Pool Average Well Tests Report Start: 01/01/2018 End: 12/31/2018 North Slope Milne Point Name FormationSub-Field rr. • .• . '® .� MPU Pad B General MP B -04A MPU Kuparuk PA (MLNE) 6 1 5.08 MPU Pad B General MP B-09 MPU Kuparuk PA (MLNE) 365 120 10.03 MPU Pad B General MP B-10 MPU Kuparuk PA (MLNE) 357 124 10.59 MPU Pad B General MP B-15 MPU Kuparuk PA (MLNE) 356 117 10.02 MPU Pad B General MP B-16 MPU Kuparuk PA (MLNE) 355 115 9.88 MPU Pad B General MP B-21 MPU Kuparuk PA (MLNE) 357 81 6.92 MPU Pad B General MP B -22A MPU Kuparuk PA (MLNE) 365 96 8.02 MPU Pad B General MP B-28 MPU Schrader Bluff PA (SCHR) 362 98 8.26 MPU Pad B General MP B-30 MPU Sag B-030 ADL 47437 342 80 7.13 MPU Pad B General MP B-32 MPU Schrader Bluff PA (SCHR) 194 49 7.70 MPU Pad C General MP C-01 MPU Kuparuk PA (MLNE) 362 80 6.74 MPU Pad C General MP C-03 MPU Kuparuk PA (MLNE) 362 99 8.34 MPU Pad C General MP C-04 MPU Kuparuk PA (MLNE) 356 79 6.77 MPU Pad C General MP C -05A MPU Kuparuk PA (MLNE) 10 4 12.20 MPU Pad C General MP C-07 MPU Kuparuk PA (MLNE) 356 88 7.54 MPU Pad C General MP C-09 MPU Kuparuk PA (MLNE) 352 82 7.11 MPU Pad C General MP C-13 MPU Kuparuk PA (MLNE) 361 88 7.43 MPU Pad C General MP C-14 MPU Kuparuk PA (MLNE) 361 88 7.43 MPU Pad C General MP C -15A MPU Sag ADL 25516 (MP17) 361 76 6.42 MPU Pad C General MP C-21 MPU Kuparuk PA (MLNE) 35 7 6.10 MPU Pad C General MP C -22A MPU Kuparuk PA (MLNE) 364 72 6.03 MPU Pad C General MP C-23 MPU Sag ADL 47434 (MP16) 360 74 6.27 MPU Pad C General MP C -24A MPU Kuparuk PA (MLNE) 356 67 5.74 MPU Pad C General MP C-26 MPU Kuparuk PA (MLNE) 361 69 5.83 MPU Pad C General MP C-40 MPU Kuparuk PA (MLNE) 361 65 5.49 MPU Pad C General MP C-43 MPU Kuparuk PA (MLNE) 361 59 4.98 MPU Pad C General MP C-45 MPU Kuparuk PA (MLNE) 360 35 2.97 MPU Pad C General MP C-46 MPU Sag ADL 25516 (MP17) 139 22 4.83 MPU Pad E General MP E-04 MPU Kuparuk PA (MLNE) 360 90 7.63 MPU Pad E General MP E-06 MPU Kuparuk PA (MLNE) 360 112 9.49 MPU Pad E General MP E-10 MPU Kuparuk PA (MLNE) 125 30 7.32 MPU Pad E General MP E-11 MPU Kuparuk PA (MLNE) 365 109 9.11 MPU Pad E General MP E -14A MPU Kuparuk PA (MLNE) 360 108 9.15 MPU Pad E General MP E-18 MPU Kuparuk PA (MLNE) 359 92 7.82 MPU Pad E General MP E -20A MPU Schrader Bluff PA (SCHR) 351 110 9.56 MPU Pad E General MP E-22 MPU Kuparuk PA (MLNE) 360 104 8.81 MPU Pad E General MP E -24A MPU Schrader Bluff PA (SCHR) 360 92 7.79 MPU Pad E General MP E-31 MPU Schrader Bluff PA (SCHR) 360 92 7.79 MPU Pad E General MP E-32 MPU Schrader Bluff PA (SCHR) 360 95 8.05 Exhibit 6-C Well Test Summary Milne Point Unit Sub -Field Name Formation Name I Total Tests Avg._Tests_ MPU Pad F General MP F-01 MPU Kuparuk PA (MLNE) 341 54 4.83 MPU Pad F General MP F-06 MPU Kuparuk PA (MLNE) 361 59 4.98 MPU Pad F General MP F-09 MPU Kuparuk PA (MLNE) 358 53 4.52 MPU Pad F General MP F-107 MPU Schrader Bluff PA (SCHR) 331 12 1.11 MPU Pad F General MP F-109 MPU Schrader Bluff PA (SCHR) 360 12 1.02 MPU Pad F General MP F-14 MPU Kuparuk PA (MLNE) 360 51 4.32 MPU Pad F General MP F-18 MPU Kuparuk PA (MLNE) 326 46 4.30 MPU Pad F General MP F-22 MPU Kuparuk PA (MLNE) 359 52 4.42 MPU Pad F General MP F-25 MPU Kuparuk PA (MLNE) 360 52 4.41 MPU Pad F General MP F-34 MPU Kuparuk PA (MLNE) 362 51 4.30 MPU Pad F General MP F-37 MPU Kuparuk PA (MLNE) 359 44 3.74 MPU Pad F General MP F-38 MPU Kuparuk PA (MLNE) 354 21 1.81 MPU Pad F General MP F-45 MPU Kuparuk PA (MLNE) 361 50 4.22 MPU Pad F General MP F-50 MPU Kuparuk PA (MLNE) 358 49 4.17 MPU Pad F General MP F -53A MPU Kuparuk PA (MLNE) 361 53 4.48 MPU Pad F General MP F-54 MPU Kuparuk PA (MLNE) 359 51 4.33 MPU Pad F General MP F -57A MPU Kuparuk PA (MLNE) 271 37 4.16 MPU Pad F General MP F-61 MPU Kuparuk PA (MLNE) 333 43 3.94 MPU Pad F General MP F-65 MPU Kuparuk PA (MLNE) 359 45 3.82 MPU Pad F General MP F -66A MPU Kuparuk PA (MLNE) 361 43 3.63 MPU Pad F General MP F -73A MPU Kuparuk PA (MLNE) 286 27 2.88 MPU Pad F General MP F -78A MPU Kuparuk PA (MLNE) 360 50 4.24 MPU Pad F General MP F-79 MPU Kuparuk PA (MLNE) 328 51 4.74 MPU Pad F General MP F-86 MPU Kuparuk PA (MLNE) 243 32 4.02 MPU Pad F General MP F -87A MPU Kuparuk PA (MLNE) 307 52 5.17 MPU Pad F General MP F-93 MPU Kuparuk PA (MLNE) 361 52 4.39 MPU Pad F General MP F-94 MPU Kuparuk PA (MLNE) 356 45 3.86 MPU Pad F General MP F-96 MPU Kuparuk PA (MLNE) 360 43 3.64 MPU Pad G General MP G-02 MPU Schrader Bluff PA (SCHR) 348 158 13.85 MPU Pad G General MP G-14 MPU Schrader Bluff PA (SCHR) 362 162 13.65 MPU Pad G General MP G-16 MPU Schrader Bluff PA (SCHR) 361 169 14.28 MPU Pad G General MP G-18 MPU Schrader Bluff PA (SCHR) 361 5 0.42 MPU Pad H General MP H-05 MPU Kuparuk PA (MLNE) 351 69 6.00 MPU Pad H General MP H -08B MPU Schrader Bluff PA (SCHR) 361 66 5.58 MPU Pad H General MP H-16 MPU Schrader Bluff PA (SCHR) 361 52 4.39 Exhibit 6-C Well Test Summary Milne Point Unit MPU Pad I General MP 1-03 MPU Schrader Bluff PA (SCHR) 362 161 13.56 MPU Pad I General MP 1-11 MPU Schrader Bluff PA (SCHR) 359 148 12.57 MPU Pad I General MP 1-14 MPU Schrader Bluff PA (SCHR) 361 147 12.42 MPU Pad I General MP 1-15 MPU Schrader Bluff PA (SCHR) 361 158 13.35 MPU Pad I General MP 1-19 MPU Schrader Bluff PA (SCHR) 246 121 15.00 MPU Pad J General MP J -01A MPU Schrader Bluff PA (SCHR) 361 80 6.76 MPU Pad J General MP J-03 MPU Schrader Bluff PA (SCHR) 362 77 6.49 MPU Pad J General MP J-06 MPU Kuparuk PA (MLNE) 360 71 6.02 MPU Pad J General MP J -09A MPU Schrader Bluff PA (SCHR) 78 11 4.30 MPU Pad J General MP J-10 MPU Kuparuk PA (MLNE) 361 80 6.76 MPU Pad J General MP J-25 MPU Schrader Bluff PA (SCHR) 362 72 6.07 MPU Pad J General MP J-26 MPU Schrader Bluff PA (SCHR) 358 69 5.88 MPU Pad J General MP J-27 MPU Schrader Bluff PA (SCHR) 362 82 6.91 MPU Pad J General MP J-28 MPU Schrader Bluff PA (SCHR) 365 80 6.68 MPU Pad K General MP K-05 MPU Kuparuk PA (MLNE) 361 129 10.90 MPU Pad K General MP K-17 MPU Kuparuk PA (MLNE) 365 65 5.43 MPU Pad K General MP K-30 MPU Kuparuk PA (MLNE) 361 138 11.66 MPU Pad K General MP K-33 MPU Kuparuk PA (MLNE) 129 48 11.35 MPU Pad K General MP K-33 MPU Sag/Und ADL 375132 200 81 12.35 (M P03) MPU Pad K General MP K-44 MPU Kuparuk PA (MLNE) 365 140 11.70 MPU Pad L General MP L -02A MPU Kuparuk PA (MLNE) 364 77 6.45 MPU Pad L General MP L-03 MPU Kuparuk PA (MLNE) 363 76 6.39 MPU Pad L General MP L-04 MPU Kuparuk PA (MLNE) 247 47 5.80 MPU Pad L General MP L-05 MPU Kuparuk PA (MLNE) 363 69 5.80 MPU Pad L General MP L-07 MPU Kuparuk PA (MLNE) 364 74 6.20 MPU Pad L General MP L-11 MPU Kuparuk PA (MLNE) 317 61 5.87 Exhibit 6-C Well Test Summary Milne Point Unit Sub -Field Name Formation Name.. • • .. MPU Pad L General MP L-12 MPU Kuparuk PA (MLNE) 364 67 5.61 MPU Pad L General MP L-13 MPU Kuparuk PA (MLNE) 176 27 4.68 MPU Pad L General MP L-14 MPU Kuparuk PA (MLNE) 346 53 4.67 MPU Pad L General MP L-20 MPU Kuparuk PA (MLNE) 64 12 5.72 MPU Pad L General MP L-25 MPU Kuparuk PA (MLNE) 363 63 5.29 MPU Pad L General MP L -28A MPU Kuparuk PA (MLNE) 364 88 7.37 MPU Pad L General MP L-29 MPU Kuparuk PA (MLNE) 363 61 5.13 MPU Pad L General MP L-36 MPU Kuparuk PA (MLNE) 365 60 5.01 MPU Pad L General MP L-40 MPU Kuparuk PA (MLNE) 364 58 4.86 MPU Pad L General MP L-41 MPU Kuparuk PA (MLNE) 319 8 0.76 MPU Pad L General MP L-43 MPU Kuparuk PA (MLNE) 363 55 4.62 MPU Pad L General MP L-46 MPU Schrader Bluff PA (SCHR) 360 53 4.49 MPU Pad L General MP L-47 MPU Schrader Bluff PA (SCHR) 365 50 4.18 MPU Pad L General MP L-51 MPU Schrader Bluff PA (SCHR) 248 8 0.98 MPU Pad L General MP L-53 MPU Schrader Bluff PA (SCHR) 257 10 1.19 MPU Pad L General MP L-54 MPU Schrader Bluff PA (SCHR) 365 5 0.42 MPU Pad L General MP L-56 MPU Schrader Bluff PA (SCHR) 363 6 0.50 MPU Pad L General MP L-57 MPU Schrader Bluff PA (SCHR) 362 6 0.51 MPU Pad S General MP S-05 MPU Schrader Bluff PA (SCHR) 350 81 7.06 MPU Pad S General MP S-12 MPU Schrader Bluff PA (SCHR) 360 71 6.02 MPU Pad S General MP S-17 MPU Schrader Bluff PA (SCHR) 360 73 6.18 MPU Pad S General MP S-23 MPU Schrader Bluff PA (SCHR) 356 68 5.83 MPU Pad S General MP S-25 MPU Schrader Bluff PA (SCHR) 360 71 6.02 MPU Pad S General MP S-27 MPU Schrader Bluff PA (SCHR) 360 70 5.93 MPU Pad S General MP S-28 MPU Schrader Bluff PA (SCHR) 338 59 5.32 MPU Pad S General MP S-35 MPU Schrader Bluff PA (SCHR) 355 64 5.50 MPU Pad S General MP S-90 MPU Sag ADL 380109 (MP18) 365 62 5.18 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. IL PLAN REVIEW A. Drilling Program Hilcorp Alaska drilled 13 new wells 2018: • 3 F Pad Schrader Bluff injection wells — F-106, F-108, F-110 • 2 F Pad Schrader Bluff producing wells — F-107, F-109 • 3 L pad Schrader Bluff producing wells — L-54, L-56, L-57 • 1 E Pad Schrader Bluff producing wells — E-35 • 2 L Pad Kuparuk producing wells — L-41, L-55 • 1 Moose Pad Disposal well into the Ugnu — M-03 • 1 Moose Pad Schrader Bluff producer — M-10 B. Workover Program Hilcorp completed the following well projects: • F-01 - Kuparuk producing well — ESP change out • F-61 - Kuparuk producing well — ESP change out • F-79 - Kuparuk producing well — ESP change out • F-18 - Kuparuk producing well — ESP change out • F-87 - Kuparuk producing well — ESP change out • L-49 - Schrader Bluff injection well — isolate partial lateral from injection • J -09A — Schrader Bluff producing well — replace ESP completion with jet pump completion • L-11 - Kuparuk producing well — ESP change out • B-32 - Schrader Bluff producing well — water shut off • F-21 - Source water well — ESP change out • L-04 - Kuparuk producing well — ESP change out • L-14 - Kuparuk producing well — ESP change out • L-20 — Kuparuk producing well- Conversion from ESP to Jet Pump • F-86 — Kuparuk producing well — ESP change out C. Major Facility Projects Key activities included: 0 Continued construction of Moose Pad Facility; Exhibit 7-A Review of Annual Plan of Development and Operations Milne Point Unit • Purchase and installed polymer injection facilities at J -Pad and L -Pad; • Install additional electrical module at E -Pad • Continued installation of power module at L Pad III. 2019 PLAN OF DEVELOPMENT AND OPERATIONS A. Proposed Drilling Program • Moose Pad batch drilling Schrader Bluff (25 wells) o M-04 water source wells o M-11 through M-23 alternating production and injection wells (6 prod/ 7 inj) • E Pad Schrader Bluff drilling program (8 wells) o E-37 through E-42 alternating production and injection wells (3 prod / 3 inj) • 1 Moose Pad Kuparuk producing wells — yet to be named • 1 L Pad Kuparuk producing wells — yet to be named • 1 L Pad Sag River producing well — L-58 • 1 S Pad Ugnu producing wells — S-202 • 1 S Pad Ugnu injection wells — S-201 B. Proposed Workover Program During the 2019 calendar year, Hilcorp anticipates completing up to 16 well workovers with the ASR1 rig. C. Major Facility Projects Key facility projects anticipated to be undertaken during 2019 include: • Moose Pad facilities completion • L -pad power plant completion • F -pad polymer injection facility • L and J pad polymer silo upgrade • G&I ball mill upgrade • Milne TAR — upgrade of vessel internals & instrumentation, repiping deoiler • S -pad source water injector infrastructure (transformer, drive) • F -pad chemical injection skid and tank install