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Home My WebLink About2019 Deep Creek Unit Hilcorp Alaska, LLC 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 May 1, 2020 Jesse Chmielowski, Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 RE: DEEP CREEK UNIT, HAPPY VALLEY FIELD, STATE OF ALASKA, 2019 ANNUAL RESERVOIR REVIEW Dear Commissioner Chmielowski: 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 Beluga/Tyonek Gas Pool in the Happy Valley Field. This is the 15th Annual Reservoir Review and corresponds to events during the 2019 calendar year. Note that the Happy Valley Field has been on production since November 2004 and the cumulative production as of 12/31/2019 is 38.2 BSCF with an average rate of 4,220 MSCFD in December 2019. Note these numbers do include gas volumes produced by the well HVB-14 from the Undefined, Sterling formation. Sincerely, Anthony McConkey Reservoir Engineer Page 2 Reservoir review items per CO553 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 correct ing to datum pressure using a gas gradient of .03 psi/ft) are shown below. well top perf depth major fm P_datum SITP date HVA-01 7,155 Lower Tyonek 1694 1368 8/4/2019 HVA-08 4,964 Beluga 869 702 11/10/2018 HVB-13 3,798 Upper Tyonek 1037 978 7/23/2018 HVB-14 1,689 Sterling 444 260 4/18/2020 HVB-15 2,812 Upper Beluga 572 192 8/1/2018 The resulting average reservoir pressure by major zone is shown below. Since no new static surveys were conducted in 2019, updates for the Lower Tyonek and Sterling sands are based upon the latest SITP value and assumed pressure gradient to datum. Note these data points may be inaccurate due to unknown fluid columns, but fall in line with the produced volumes. Happy Valley Major formations Sterling Upper Beluga Beluga Upper Tyonek Lower Tyonek datum_depth(tvdss) 2000 3500 5000 7500 9000 init P_datum(psig) 860 1505 2150 3225 3870 2019 P_datum (psig) 444 572 869 1037 1694 b) Workovers & surveys of the existing wells. a. No new drill wells were brought online in 2019. b. No workovers were conducted in 2019. Page 3 c) Production for 2019 Calendar Year (sub-divided by major formation) Well 2019 Cumulative Production, Mscf Happy Valley Tract Happy Valley PA Sterling Upper Beluga Beluga Upper Tyonek Lower Tyonek HVA-01 2 2 HVA-02 47,789 47,789 HVA-03 0 HVA-08 93,994 23,483 70,511 HVA-09 21,132 0 21,132 0 HVA-10 230,649 0 230,649 0 HVA-11 0 0 0 0 HVB-12 402,796 0 162,666 240,130 HVB-13 59,111 5,296 53,815 0 HVB-14 52,460 52,460 HVB-15 345,735 345,735 HVB-17 412,146 412,146 Cum Gas Volume (MCF) 1,665,814 52,460 345,735 28,778 538,774 700,067 d) Progress and tests to expand pool productive limits : No new exploration and development wells were drilled by Hilcorp in the Happy Valley PA.