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Home My WebLink About2019 Northstar-Kuparuk Oil PoolHilcorp Alaska, LLC 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 April 1st, 2020 Jeremy Price, Chair Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 RE: NORTHSTAR UNIT, NORTHSTAR FIELD, NORTHSTAR KUPARUK OIL POOL, STATE OF ALASKA, 2019 ANNUAL RESERVOIR REVIEW Dear Commissioner Price: In accordance with Conservation Order No. 739, Hilcorp Alaska, LLC (“Hilcorp”), as Operator, hereby submits for your review the following Annual Reservoir Review for the Kuparuk Oil Pool in the Northstar Field. This is the 3rd Annual Reservoir Review under Conservation Order No. 739, approved in January 2018 that corresponds to events during the 2018 calendar year. Note that the Northstar Field has been on production since November 2001, with the Kuparuk Oil Pool beginning continuous production in November 2010. A.Progress of Enhanced Recovery Project and Reservoir Management Summary During 2019, 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 statistics are summarized in Table 1. Average daily oil production from the Kuparuk Oil Pool field was 3,997 bopd and average daily gas injection was 74.6 mmscfpd. The values reported include oil production from the NS-07 well beginning in April 2019. During 2019, the negative reservoir voidage was calculated at 2,780 thousand-reservoir barrels (MRB). Note that lean gas re-injection began in wells NS-18 and NS-17 in January and October 2019 respectively. The average of reservoir pressure for 2019 was 2,557 psia. The reservoir simulation model with the geologic interpretation was created to continue progression of future development scenarios of the Kuparuk reservoir. This model was matched to historical production, PVT analysis, and reservoir pressure data gathered to date. It was utilized prior to the initiation of the lean gas reinjection project as part of the approved by Kuparuk Area Injection Order (AIO) 41. The model studied the conversion of NS-18 to injection and the recompletion of the NS-17 well into the Kuparuk C for additional lean gas injection capacity. This will be continued to be used in 2020 to monitor the initial results of the EOR project and verify future producer and gas injection location(s) to enhance ultimate recovery of the Kuparuk reservoir. Page 2 B.Voidage Balance by Month of Produced Fluid and Injected Fluids – 2019 As of 12/31/2019 Full year (1)As of Dec-19 (2) Producers 4 4 Injectors 2 1 2019 Cumulative Start- Up through 12/31/19 1,458,739 7,386,476 68,853,453 246,261,189 466,405 507,344 0 0 27,243,138 0 4,600,070 16,928,841 1,820,103 1,820,103 -2,779,968 -15,108,738 3,997 188,640 1,278 0 74,639 2,557 psia (1) Well count data reflects ONLY those wells which contributed to production/injection during the respective year Table 1: NORTHSTAR KUPARUK OIL POOL 2019 OVERVIEW STATISTICAL SUMMARY WELL STATISTICS NOTES: Gas (MCF) (2) Active wells as of December 2019 PRODUCTION/INJECTION STATISTICS Production Oil (BBL) Gas (MCF) Water (BBL) Injection Water (BBL) Water, BWPD Balance (excludes satellite well NS-34A and Ivishak Production ) Cum Production (MRB) Cum Injection (MRB) Over/Under (MRB) DAILY AVERAGE RATE DATA 2019 Production Oil, BOPD Gas, MCF/D Average of surveys obtained in 2019 Injection Water, BWPD Gas, MCFPD AVERAGE RESERVOIR PRESSURE Month Oil, MRB Free Gas, MRB Water, MRB Total Voidage, MRB Year Cum, MRB Cum since start-up, MRB Formation Gas, MRB Flare & Import Gas, MRB Total Injection, MRB Year Cum, MRB Cum since start-up, MRB Net Injection, MRB Year Cum, MRB Cum since start-up, MRB Jan-2019 0 382,815 7,844 382,815 382,815 12,711,585 34,775 0 34,775 34,775 34,775 -348,040 -348,040 -12,676,810 Feb-2019 0 341,351 5,655 341,351 724,166 13,052,936 155,002 0 155,002 189,777 189,777 -186,348 -534,388 -12,863,158 Mar-2019 0 393,590 10,170 393,590 1,117,756 13,446,526 166,991 0 166,991 356,768 356,768 -226,599 -760,988 -13,089,758 Apr-2019 0 364,228 14,452 364,228 1,481,984 13,810,754 163,477 0 163,477 520,245 520,245 -200,751 -961,739 -13,290,509 May-2019 0 453,523 29,983 453,523 1,935,507 14,264,277 165,179 0 165,179 685,424 685,424 -288,343 -1,250,082 -13,578,852 Jun-2019 0 353,998 36,700 353,998 2,289,505 14,618,275 135,963 0 135,963 821,388 821,388 -218,035 -1,468,117 -13,796,887 Jul-2019 0 418,062 50,556 418,062 2,707,567 15,036,337 168,752 0 168,752 990,140 990,140 -249,310 -1,717,427 -14,046,197 Aug-2019 0 308,813 48,569 308,813 3,016,380 15,345,151 129,338 0 129,338 1,119,478 1,119,478 -179,475 -1,896,903 -14,225,673 Sep-2019 0 405,477 60,372 405,477 3,421,858 15,750,628 170,854 0 170,854 1,290,332 1,290,332 -234,623 -2,131,525 -14,460,295 Oct-2019 0 408,948 66,154 408,948 3,830,806 16,159,576 174,711 0 174,711 1,465,043 1,465,043 -234,238 -2,365,763 -14,694,533 Nov-2019 0 386,148 65,945 386,148 4,216,954 16,545,724 172,333 0 172,333 1,637,375 1,637,375 -213,815 -2,579,579 -14,908,349 Dec-2019 0 383,116 70,891 383,116 4,600,070 16,928,841 182,727 0 182,727 1,820,103 1,820,103 -200,389 -2,779,968 -15,108,738 2019 Totals 0 4,600,070 467,291 4,600,070 1,820,103 0 1,820,103 -2,779,968 Produced Fluids Injected Fluids Net Injection (Injection - Production) Page 3 C.Summary and Analysis of reservoir pressure surveys within the pool Static bottom hole pressures collected in 2019 are summarized below. Please note this data includes Ivishak reservoir pressure data. The average Northstar Kuparuk A & C reservoir pressure for 2019 is 2,557psig, down 490psig from the 2018 average. Please note that the reported reservoir pressures of the well NS-13 and NS-18 during 2019, and NS-07 after April 2019, are from the Kuparuk Reservoir. These above pressures have been included with the historical Kuparuk reservoir pressure data and are graphically represented in the next figure. 6. Oil Gravity: 44/47 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. Surv. 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, psi/ft. 22. Pressure at Datum (cal)psig NS-07 50029230810000 O 590150 Kuparuk 9,002' - 9,023'4/20/19 24.7 PBU 198.27 8,726 2,885 9,000 0.44 3,006 NS-07 50029230810000 O 590150 Kuparuk 9,002' - 9,023'4/26/19 4.1 PBU 191.2 8,726 2,814 9,000 0.09 2,839 NS-07 50029230810000 O 590150 Kuparuk 9,002' - 9,023'6/22/19 8.5 PBU 188.4 8,726 2,692 9,000 0.09 2,717 NS-07 50029230810000 O 590150 Kuparuk 9,002' - 9,023'8/30/19 186.6 PBU 188.4 8,726 2,707 9,000 0.09 2,731 NS-13 50029230680000 O 590150 Kuparuk 8,924'-8,961'6/21/19 117 PBU 179.6 8,485 2,504 9,000 0.09 2,550 NS-13 50029230680000 O 590150 Kuparuk 8,924'-8,961'8/30/19 186.9 PBU 179.6 8,485 2,511 9,000 0.09 2,557 NS-18 50029231020000 O 590150 Kuparuk 8,942'-9,038'1/17/19 330.6 SBHP 182.3 9,000 2,865 9,000 0.07 2,865 NS-06 50029230880000 O 590100 Ivishak 11,036'-11,155'3/21/19 448.2 SBHP 254.6 11,100 5,357 11,100 0.13 5,357 NS-07 50029230810000 O 590100 Ivishak 11,111'-11,125'3/19/19 53.4 SBHP 253.6 10,900 5,400 11,100 0.10 5,421 NS-14A 50029230260100 O 590100 Ivishak 11,089'-11,092'1/19/19 124.3 SBHP 252.7 11,000 5,430 11,100 0.10 5,440 NS-16A 50029230960100 O 590100 Ivishak 11.085'-11.146'12/29/19 151.9 SBHP 253.6 11,045 5,435 11,100 0.10 5,441 NS-19 50029230520000 O 590100 Ivishak 11,118'-11,140'1/20/19 6181.9 SBHP 251.6 10,900 5,319 11,100 0.10 5,339 NS-20 50029231180000 O 590100 Ivishak 10,957'-11,040'9/9/19 541 SBHP 250 10,966 5,403 11,100 0.10 5,417 NS-21 50029231260000 O 590100 Ivishak 10,999' - 11,067'9/10/19 255.5 SBHP 250.3 11,000 5,385 11,100 0.11 5,396 Comments: Chris Kanyer 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 Printed Name Title Date Reservoir Engineer April 1, 2020 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator:2. Address: Hilcorp Alaska, LLC 3800 Centerpoint Dr Suite 1400, Anchorage AK 99503 7. Gas Gravity: Northstar Unit -11,100/-9,000 0.75 3. Unit or Lease Name:5. Datum Reference:4. Field and Pool: Northstar Field/ Northstar Oil&Kuparuk Oil Pools Page 4 D.Results and Analysis of Production and Injection log surveys, tracer surveys, observation well surveys and any other special monitoring No new Kuparuk production profiles were obtained in 2019. There was no other special monitoring 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. 2019 Production Allocation Method A well’s theoretical production is calculated using metered field volumes and hours on production as follows: 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). ܶ݋ݐ݈ܽ ܰ݁ݐ ܲݎ݋݀ݑܿ݁݀ ܩܽݏ ܶℎ݁݋ݎ݁ݐ݈݅ܿܽ ܲݎ݋݀ݑܿ݁݀ ܩܽݏ = ܩܽݏ ܣ݈݈݋ܿܽݐ݅݋݊ ܨܽܿݐ݋ݎ Gas Allocation Factor x Theoretical Produced Gas (individual well) =Allocated Gas (individual well). Page 5 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 ܣܿݐݑ݈ܽ ܨ݈݅݁݀ ܱ݈݅ ܲݎ݋݀ݑܿݐ݅݋݊ +ܨ݈݅݁݀ ܰܩܮ ܲݎ݋݀ݑܿݐ݅݋݊ ܶℎ݁݋ݎ݁ݐ݈݅ܿܽ ܨ݈݅݁݀ ܱ݈݅ ܲݎ݋݀ݑܿݐ݅݋݊ =ܱ݈݅ ܣ݈݈݋ܿܽݐ݅݋݊ ܨܽܿݐ݋ݎ 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 ܰ݁ݐ ܨ݈݅݁݀ ܹܽݐ݁ݎ ܲݎ݋݀ݑܿݐ݅݋݊ ܶℎ݁݋ݎ݁ݐ݈݅ܿܽ ܨ݈݅݁݀ ܹܽݐ݁ݎ ܲݎ݋݀ݑܿݐ݅݋݊ =ܹܽݐ݁ݎ ܣ݈݈݋ܿܽݐ݅݋݊ ܨܽܿݐ݋ݎ Water Allocation Factor x Theoretical Well Water Production =Allocated Water Production (individual well). Northstar field allocation factors for 2019 averaged 1.32 for oil, 0.98 for water, and 0.94 for gas. Oil allocation factor was high due to allocation of NGL production. This data includes all Ivishak producers as well. F. & G. Future Development Plans & Review of Annual Plan of Operations and Development In 2019, Hilcorp increased unit production through well intervention projects, and other optimization opportunities, that included the evaluation of shut-in wells for potential return to service. The full field study of the Northstar Kuparuk Reservoir was continued. Well histories, review of production and injection data, material balance calculations, geological, and geophysical work were updated. The Kuparuk geological model was created with a reasonable history match. This model was utilized to progress the development plans of the Kuparuk reservoir, including the initiating of lean gas reinjection into the Kuparuk with the conversion of NS-18 and the recompletion of the NS-17 well in 2019. Projects completed during the 2019 calendar year: ·NS-07 - Performed RWO recompletion from the Ivishak reservoir producer to a Kuparuk C producer; (April 2019) ·NS-17 - Performed RWO recompletion from the Ivishak reservoir gas injector to a lean gas injection well in the Kuparuk C reservoir. (October 2019) ·Northstar Propane Chiller Project o Performed a feasibility study, economic analysis, and sanctioned chiller project to improve NGL recovery during warmer ambient temperatures; and (February 2019) Page 6 o Began the necessary infrastructure, facility modifications and tie-ins for this project. (September 2019 and ongoing). Projects planned for the 2020 calendar year: In 2020, 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 2020 calendar year. The mobilization of a workover rig to the Northstar Island during the 2020 is tentatively planned for the summer barge season for work on the NS-25 Ivishak production well. No Kuparuk rig work currently planned. The Northstar Propane Chiller Project will continue into 2020 with the construction of an ice road, install support frames, set chiller modules, and install associated chiller system piping. Plans are to commission the chiller during summer 2020 for improved NGL recovery during warmer ambient temperatures. 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 recent well intervention projects. This will also include updating Kuparuk geologic model. Sincerely, Chris Kanyer Reservoir Engineer - Northstar