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Home My WebLink AboutCO 106Conservation Order Cover Page XHVZE This page is required for administrative purposes in managing the scanning process. It marks the extent of scanning and identifies certain actions that have been taken. Please insure that it retains it's current location in this file. /__(~_~ Conservation Order Category Identifier Organizing (~o,~.) [] Grayscale items: [] Poor Quality Originals: [] Other: NOTES: DIGITAL DATA OVERSIZED (Scannable with large plotter/scanner) [] Diskettes, No. ~ [] Other, No/Type [] Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' sca[~er) of various kinds [] Other BY: Scanning Preparation TOTAL PAGES /S/'~ · 0 .B~N"~VIARIA ~ Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: ~ PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: YES ~ NO Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND' YES NO (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL ATTENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALITY, GRAYSCALE OR COLOR IMAGES) I I I General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd 1. 2. March 18, 1971 June 5, 1971 ) ) Conservation Order 106 Application for Spacing Exception Swanson River Field Notice of Hearing and affidavit of publication Conservation Order 106 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Re: THE APPLICATION OF STANDARD ) OIL COMPANY OF CALIFORNIA for an ) exception to Conservation Order ) No. 8 to permit the drilling and ) completion of an oil well on a ) 40-acre spacing pattern in the ) Swanson River Field ) Conservation Order No. 106 Swanson River Field June 23, 1971 IT APPEARING THAT: 1. The Standard Oil Company of California submitted a request dated May 18, 1971 for an exception to Conservation Order No. 8 permitting an 80-acre well spacing pattern, to permit the drilling and completion of a single directional oil well, Soldotna Creek Unit No. 13-34, in the Northwest 1/4 of the Southwest 1/4 of Section 34, Township 8 North, Range 9 West, S.M., on a 40-acre pattern. 2. Standard Oil Company of California is the only operator affected by the requested order. 3. Notice of hearing on the request was published in the Anchorage Daily News on June 5, 1971, pursuant to Title 11, Alaska Administrative Code, Section.,' 2009, and no protest was received. AND IT FURTHER APPEARING THAT: 1. Swanson River Oil Field is currently being produced under a gas injection pressure maintenance program. 2. Faulting plays a major role in oil accumulation at the Swanson River Field, and faults or portions of some faults are barriers to fluid movement. 3. The geometry and configuration of the present 80-acre spacing pattern with respect to the location of barrier faults and productive limit lines does not allow for adequate reservoir drainage in this area. .~ 4. A poor areal sweep efficiency for the gas injection oil recovery project exists in the eastern flank of the block between Faults "E" and "F" with the present 80-acre spacing pattern. Conservation Order No. 106 Page 2 June 23, 1971 5. Completion of the proposed SCU No. 13-34 well should allow for increased efficiency for the project, increased recoverable reserves of oil, and greater ultimate oil recovery. NOW, THEREFORE, IT IS ORDERED THAT: The Standard Oil Company of California be permitted to drill and complete as an oil well the Soldotna Creek Unit No. 13-34 in the Northwest 1/4 of the Southwest 1/4 of Section 34, Township 8 North, Range 9 West, S.M., on a 40-acre pattern. DONE at Anchorage, Alaska, and dated June 23, 1971. Thomas R. Marshall, Jr., Executiv~ Secretary Alaska Oil and Gas Conservation Committee Concurrence: Homer L. Burrell, Chairman Alaska Oil and Gas Conservation Committee O. k.- Gilb'r~h, Ir., Membe'r~''~ .... Alaska Oil and Gas Conservation Committee AFFIDAVIT OF PUBLIC,/ ION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. .... ['] ary...~.. :~Jsaks ....................... being first duly sworn on oath deposes and says that ..... .s..h..e. ..... the Legal ~l~r of the iS .......... ~ ....................... Anchorage News, a daily news- paper. That said newspaper has been approved as a legal news- paper by the Third Judicial Court, Anchorage, Alaska, and it is now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all of said time was printed in an office maintained at the aforesaid place of publication of said news- paper. That the annexed is a true copy of a ..~...~.~:~..:l:.....:.[.o..t..i..c..e....~.O. 44. as it was published in regular issues (and not in supplemental form) of said newspaper for. a period of .--One ......... insertions, commencing on the of ...... .81B.n...e. ........... ,19 .._7..1, and ending on the ...... .~ .......... day of of ...Jun~ ..................... 19---71.-, both dates inclusive, and that such newspaper was regularly distributed to its subscribers dur- ing all of sa.id period. That the full amount of the fee charged for the foregoing publication is the sum of $ 1~.~0 which amount has been pa~d in full at the rate of 25¢ per line; Mini- mum,..~, c~~7,~.50~~~/~.......i' '~.~__.~_..! .......... '~?'"" ''~ . Subscribed a/n/d/sworn to before me this ---..5.. day of..Jn.ne. ......... , 1~1 .... lhird Division, MY CO~I~ION EXPIRES .... ....... ..... 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', _ · Re: NOTICE OF PUBLIC HEARING STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES Alaska Oil and Gas Conservation Committee Conservation File No. 106 The application of Standard Oil Company of California for an exception to Conservation Order No. 8 to permit the drilling of an oil well on a 40-acre spacing pattern~in the Swanson River Oil Field. Notice is hereby given that the Standard Oil Company of California has applied for an order to permit the drilling of a single directional oil well, Soldotna Creek Unit No. 13-34 in the Northwest 1/4 of the Southwest 1/4 of Section 34, Township 8 North, Range 9 West, S.M., on a 40-acre pattern. Conservation Order No. 8 requires wells to be drilled on an 80-acre pattern. This field is presently being produced under a gas injection pressure maintenance program. Pursuant to Title 11, Alaska Administrative Code, Section 2009, parties who may be aggrieved if the requested order is issued are allowed 10 days from the date of this publication in which to file a protest and request for hearing. The place of filing is 3001 Porcupine Drive, Anchorage, Alaska 99504. If such a protest is timely filed, a hearing on the matter will be held at the above address at 9:30 a.m., June 16, 1971, at which time protestants and others may be heard. If no such protest is timely filed, the Committee will consider the issuance of the order without a hearing. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish June 5, 1971 PRODUCING DEPARTMENT TELEPHONE: 272-846! C. V. CHATTERTON DISTRICT SUPERINTENDENT · qT~Nn~n OrL COMPANY OF CALIFORNIA, WESTERN OPERATIONS, INC. P. O. BOX 7-839 ANCHORAGE ALASKA 99501 Da~ed ~y iI, 1962 S~anson ~iver ~ieZd, A~aska Mr. Homer Burrell, DireCtor Division of 0il & Gas Department of Natural Resources 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Burrell: m¥~¢a)H oF OIL AND GAS Standard Oil Company of California, as Operator of the Swanson River FieLd for itself, Atlantic Richfield Company, Union Oil Company of California, and Marathon 0il Company, proposes to drill a directional oil well (Soldotna Creek Unit #13-34) within said field on unitized lands with a bottom hole location projected to a 40-acre legal subdivision described as the Northwest 1/4 of the Southwest 1/4 of Section 34, Township 8 North, Range 9 West, S.M. This proposed well (SCU #13-34) will require an exception to Conservation Order #8, dated May 11, 1962. Conservation Order #8 established a permanent 80-acre well spacing pattern for the entire Swanson River Field. All of the lands within the Swanson River Field have been unitized by the Swanson River and Soldotna Creek Units. Through unitization and the applicable provisions of that certain Agreement for the Development and Operation of the Swanson River Field, effective as of July 1, 1963, all correlative rights and equities of the affected interest owners are adequately protected. Property and lease lines within the field are subject to the philosophy of unitization and may be disregarded for the purposes of drill- ing SCU #13-34 as herein proposed. In support of this application, Standard, as Operator, respectfully submits the following report and Exhibits: 1. Geologic and Engineering Report. 2. Exhibit "A", Structural Contour Map showing top of the Hemlock Zone. 3. Exhibit "B" map showing location of proposed well SCU #13-34. 4. Exhibit "C" showing the geologic cross-section through well SCU #13-34. 1~. Homer Butte11, Director Division of 0il and Gas -2- May 18, 1971 Now, therefore, Standard, as Operator, hereby respectfully requests that an order be issuedpursuant to Title 11, Alaska Administrative Code, Section 2009, for the purpose of granting an exception to Conservation Order #8, authorizing the drilling of SCU #13-34 Well at the proposed location within the above-described'40-acre legal subdivision. This request is for SCU #13-34 only. C. V. Chatterton LGP:nh Enclosures GEOLOGIC AND ENGINEERING REPORT TO SUPPORT APPLICATION FOR AN EXCEPTION TO CONSERVATION ORDER #8 DATED MAY 11, 1962 SWANSON RIVER FIELD GENERAL Standard Oil Company of California, as'Operator, hereby requests that an exception be granted to Conservation Order #8 for the drilling of SCU Well #13-34. SCU #13-34 is pro- posed as a directional well to be drilled on unitized lands from SCU #34-33 surface location to a bottom hole location approximately 1650' North and 950' East of the SW corner of Section 34, T. 8 N., R. 9 W., Seward Meridian. SCU #13-34 will be completed as a producing well from the Hemlock Zone. A detailed location for SCU #13-34 is shown on the map marked Exhibit "B", attached hereto and made a part hereof. As for this Well, the proposed location will have the effect of further reducing the well spacing pattern as approved by Conservation Order #8 to a 40-acre pattern as herein proposed. It is requested that any variance to Conserva- tion Order #8 be applicable only to the drilling of SCU #13-34.. In support of our request, we attach hereto Exhibits "A" and "C". Exhibit "A" is a structural contour map showing the top of the Hemlock Zone for the Swanson River Field. This map also shows' geologic interpretations, original oil/ water interfaces, unit and lease boundaries, lease serial numbers and the location of the proposed variance well SCU #13-34 in relation to the surrounding unitized wells within the Swanson. River Field. Exhibit "C" shows the.geologic cross-section through the prgposed variance well SCU #13-34. GEOLOGIC REPORT IN SUPPORT OF THE VARIANCE Oil entrapment at the Swanson River Field is in an anticli- nal structure oriented roughlY in a North-South direction. Structural closure varies from a maximum of. 600' in the southern portion of the field to 250' in the central and northern portion Please see Exhibit "A" · · With the anticlinal flexure, tensional faulting The majority of the faults located to date are oriented roughly in an East-West direction· They are identified in a South to North direction as Faults B, C, D, E, F, G and H on Exhibit "A". The above faults have been located and followed through the stratigraphic section on detailed structural cross-sections using all the available electric logs and dipmeter data· Displacements on these faults vary from less than 100' to more than 300'. Fault planes dip at 40° to near' vertical.' Faulting plays a major role in the accumulation .of oil at the Swanson River Field and faults or portions' of some of" them are barriers 'to fluid movement. The original produc- tive limit line of the uppermost Hemlock oil sand was deter- mined after detailed electric log, reservoir and seismic ' analysis, formation testing and drilling. This production limit line is outlined in blue on Exhibit "A". This limit line is not only located at different sub-sea depths across some barrier faults but is offset by them. Along the west- ern flank of the structure, for example, Faults "C" and "D" are barriers and Fault "E" is a barrier along t'he east- ern flank of the structure. Fault "H" is a barrier across the entire structure. The oil' productive portion of the ~emlock reservoir consists of at maximum ten sands in the southern portion of the field south of Fault "E". North of Fault "E" only the first five sands are productive. These various sands are identified on the type logs included in Exhibit "A". Sand deposition is not uniform across the entire field. The sands shale out at some locations and merge at others. The geometry of the present 80-acre spacing pattern, barrier fault location and productive limit line location does not allow for complete reservoir drainage in some areas. The proposed 40-acre spacing 'well SCU ~13-34 is required to adequately drain the Hemlock reservoir along the eastern flank of the structure directly north of where Fault "E" is considered a barrier to fluid migration and offset the original productive limit line. Recently complet.ed well SCU #24-34 (initial production 2800 B/D oil and 8 B/D water) demonstrated the downstruc.ture oil productive capacity of the first five Hemlock Sands south of Fault "E". A similar potential exists north of Fault "E", but there is no drain- age point available on an 80-acre spacing pattern. Please see Exhibit "C" for a geologic cross-section through the proposed variance well SCU #13-34. ENGINEERING REPORT IN SUPPORT OF THE VARIANCE During 1966 full scale gas.injection commenced at the Swan- son River Field. The objective of the gas injection project is to sweep the Hemlock oil sands with gas while maintain- ing the pressure in the reservoir at a level that will give the maximum ultimate economic recovery. Gas injection wells are marked with a red arrow on Exhibit "A". With regard to the area surrounding the proposed variance well SCU #13-34, there are currently two wells, SRU wells 12-34 and 21-34, completed in the Hemlock reservoir on the eastern limb of the Swanson River structure north of Fault "E" and south of Fault "F". Of these wells the most southerly well, # 12-34, is located next to the proposed variance well #13-34. Well SRU #12-34 is currently producing from the upper most Hemlock sand only due to bad casing that was plugged off below the ~number 1 sand. Approximately two thirds of the productive interval has been excluded in this well. Well SRU #21-34 is, therefore, the only. fui1 zone producer on the eastern flank of the subject block between Faults "E" and "F". There are currently no plans to repair well SRU 912-34. At the gas injection well for this block, well SCU #343-33, gas is injected into the full productive section of the Hemlock reservoir. However, with only' one full section downstructure withdrawal point, at well SRU #21-34, poor areal sweep efficiency exists along the eastern limb of this block. With' the configuration and mechanical condition of the present withdrawal points, it is doubtful if maximum ultimate economic recovery can be achieved alo~ng the east- ern flank of this block. By drilling the proposed variance well location, SCU #13-34, this situation can be alleviated. Reserves produced during the life of the well can be classified as "new" and "accel- erated''. The new reserves that increase the maximum ultimate recovery result from the following two factors: (1) increas- ing the areal sweep efficiency of the gas injection project between the injection well, #343-33, and the proposed vari- ance well, #13-34, and (2) increasing the recovery by water encroachment during blowdown as compared to oil recovery from well 9343-33, where 'gas saturation will be extremely high due to gas injection. The "acce~l.erated'' reserves result from the establishment of a drainage point now, compared to oil recovery from~other wells at blowdown. SUMMARY OF GEOLOGIC AND ENGINEERING EVIDENCE SUPPORT A 40-ACRE PATTERN VARIANCE FOR WELL SCU #13-34 1. Faulting plays a major role in oil accumulation at the Swanson River Field. Directly south of the proposed SCU #13-34 location, Fault "E" was originally a barrier to fluid migration and offset the original productive limit line. 2. The potential productivity of the first five Hemlock sands has been demonstrated directly south of Fault "E" by well SCU #24-34. 3. The geometry and configuration of the present 80-acre spacing pattern with respect to the location of barrier faults and productive limit lines does not allow for adequate reservoir drainage in all areas.' For..this rea- son, well SCU ~13-34 is.'required on a 40-acre spacing pattern because an 80-acre location to the east would be outside the original productive limits of the field. 4. There is presently only one full section producing well on the eastern flank of the block between Faults "E" and "F". This situation creates a poor areal sweep efficiency for the gas injection project in this block and it is doubtful maximum ultimate economic recovery will be achieved with the present spacing pattern con- figuration and well mechanical condition. Completion of proposed variance well SCU ~i3-34 will alleviate these situations by providing a neceSsary with- drawal point which will allow for a better areal sweep efficiency, increased reserves,~ and accelerated oil pro- duction. These factors will aid in providing the maxi- mum ultimate economic oil recovery from the Swanson River Field. SW.ANSON RIVER UNIT '~1.2-22' ,/ 14 I i i · i i · I · ! I · ! ! i i · I 'i ./ . 34~ - - ~,SZ 243 Presented to: Presented by.: Conservation File:, #106 Dated' May 18, 1972 · . 14 T. 8N.,R. gW. 23 Z? U. I //y i, 15 SOLDoTNA CREEK UNIT 341-4 7'YPZ' ZO~ Oi and Gas Conservation Committee' Standard'Oil Company of California 1 MARKER (~')SAND NUMBER ~SHALLOW GAS ZONE --r':...H 4 MARKER INTERVAL NOT PENETRATEO~/~OIL SAND NOT PRODUCING ~ INTERMEDIATE GAS ZONE ~PRODUCiNG rNTERVAL ~.-j.o~,T,o. o~ o,~ W^T~R CONTAC~ SAND NOT PRESENT- '.']NON-PRODUCTIVE INTERVAL PLUGGE INTERVAL --;ANDS MAPPED 'THE. :]HEMLOCK ZONE 'O ?~AY 2'1. 1971 ANCHO~GB I ZONAL STRUCTURE C(~':TOUR MAP CONTOURS ON THE H-I POINTi ( CONTOUR INTERVAL IOO') J ..... .,,,,,,:~""°"'.,, I Z'X H/,~ / 7' ",4" ~WAN$ON RIVER UNIT 32 5~2 - 22' I mm ol =i I 28 ' I ' i i 27 POINT ,' ~ 14 24 "-- , 34 J ~ , ~' '?'! ",:: ~ ~',":' ~ , , I~, I . :'SAND NUMB ./~ SHALLOW GAS !ZONE -! ' m;' m~' mm ,'mm m ~-m ,m ,,,,m ~m, ,m,, ~ ' I l I A-028996 INTERVAL NOT PENETRAT,EOj~?IL SAND NOT PRODUCING PRODUCING INTERVAL · ~r.,..POSITION OF OIL WATER CONTACT SAND NOT PRESEN.T-,.'~ ':.'-NON-PRODUCTIVE INTERVAL INTERVAL P~LU GGE~ iNTERMEDIATE'i GAS ZONE IlJlllll UN!T - LEASE · I I I III i~i I II I i iii II BOUNDARY LINE BOUNDARY LiNE III I I I I I I III III ZON X:~:°~'~RU cTuRE CONTOUR- MAP CONTOURS ON TOP THE: HI POINT SWANSON RIVER FIELD PRODUCING DE'PT. ALASKA STANDARD CIL COMPAN~ OF CALIF. JCALE _.!.,_Lj.O_g.O." DATE 5-10--'/I DRWG. ~.W.W. ~'XAIIZ~IT "~ "