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HomeMy WebLinkAboutCO 109 ) ) Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable ~ direct inspection of the file. c., () I 0 Of Order File Identifier Organizing (done) 1I1IIII111111111111 D Two-sided RES CAN DIGITAL DATA o Color Items: o Greyscale Items: o Diskettes, No. D Other, Norrype: o Poor Quality Originals: o Other: NOTES: BY: Helen ~ Project Proofing BY: Helen ~ '--- Scanning Preparation x 30 = BY: Helen ~ \ Production Scanning Stage 1 [0 (Count does include cover sheet) Page Count from Scanned File: BY: Page Count Matches Number in Scanning Preparation: Helent:M~0 If NO in stage 1, page(s) discrepancies were found: Stage 1 BY: Helen Maria Scanning is complete at this point unless rescanning is required. ReScanned BY: Helen Maria Comments about this file: o Rescan Needed 1111111111111111111 OVERSIZED (Scannable) D Maps: o Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ¢'CogS of various kindS} ~ ø6ther:: ~~~P5 / ' Date: (b <3, ð6 /5/ wþp 1111111111111111111 Date:'; <3 OS /5/ VV1f i + = JOTAL PAGES JCö (Courÿ dc.~s nc1t include cover sheet) t/1 A () Date:(n ~ OS- /s/ , vn- . , 11111111111I111I11 V YES Date:~ <3 ()S" , . YES NO NO /5/ rvtP Date: /s/ I1I111I1I1111111111 11I1111111111111111 Date: /5/ Quality Checked 11I1111111111111111 12/1/2004 Orders File Cover Page.doc ') t . Conservation Order 109 1. 2. 3. 4. November 3, 1971 November 4, 1971 November 10,1971 December 7, 1971 Standard Oil Company's Application for an Spacing exception Swanson River Field Spacing Variance Notice of Hearing and Affidavit of Publication Ltr re: typographical error Conservation Order 109 ~) ) 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 and to ) Title 11, Alaska Administrative Code, ) Section 2061 (b) to permit the drilling ) and completion of four oil wells on a ) 40 acre spacing pattern in the Swanson ) River Field and relief from the minimum ) distance of 1000 feet between oil wells ) producing from the same pool. ) Conservation Order No. 109 Swanson River Field November 30, 1971 IT APPEARING THAT: 1. The Standard Oil Company of California submitted a request dated November 3, 1971 for an exception to Conservation Order No.8 and to Title 11, Alaska Administrative Code, Section 2061 (b) to permit the drilling and completion of four oil wells in the Swanson River Field on a 40 acre spacing pattern. One or more of the following list- ed wells, when completed at the proposed bottom hole locations, may be less than 1000 feet from other wells completed in the same pool: Soldotna Creek Unit #42-5, SE~ NE~ Section 5, T. 7 N. , R. 9 W., S.M. Soldotna Creek Unit #33-8, SE~ NE~ Section 8, T. 7 N. , R. 9 W., S.M. Soldotna Creek Unit #44-33, SE~ SE~ Section 33, T. 8 N., R. 9 W., S.M. 5à/é? /?s ~r/ ~I '¿. tP /,1 wSo~dotA-a' Crcck Uni t #24-33, SE~ SW~ Section 33, T. 8 N., R. 9 t'J., S.M. 2. Standard Oil Company of California is the only operator affected by the requested order. 3. Notice of hearing on the application was published in the Anchorage Daily News on November 10, 1971, pursuant to Title 11, Alaska Administrative Code, Section 2009, and there were no protests. AND IT FURTHER APPEARING THAT: 1. Oil entrapment at the Swanson River Field is in an anticlinical structure that is faulted in several areas. Some of the faults or portions of some faults are barriers to fluid movement. 2. The geometry and configuration of the present 80 acre spacing pattern does not permit adequate drainage from certain Hemlock sand intervals in some areas of the field. 3. The Swanson River Field is currently being produced under a gas injection pressure maintenance project. · ',;J" , ') ) Conservation Order No. 109 Page 2 November 30, 1971 4. Better efficiency of the gas injection pressure maintenance project and increased ultimate recovery will be realized if producing wells are drilled into those areas that are not being adequately drained. NOW, THEREFORE, IT IS ORDERED THAT: The Standard Oil Company of California be permitted to drill and complete four oil wells in the 40 acre bottom hole locations as follows: Soldotna Creek Unit #42-5, SE!4 NP'4 Section 5, T. 7 N. , R. 9 H., S.M. Soldotna Creek Unit #33-8, SE~ NE.!.¡ Section 8, T. 7 N. , R. 9 w. , S.~1. So 1 dotna Creek Unit #44-33, SE~ SE~ Section 33, T. 8 N. , R. 9 tL , S.M. Soldotna Creek Unit #24-33, SE1-4 SW4 Sec t ion 33, T. 8 N., R. 9 ~L , S.~1. DONE at Anchorage, Alaska and dated November 30, 1971. -. §i~ OJt-4 $~ 4~ ~ IV ¡. . V.\1~1 (;\ ~. I, l't¥~'rJ 0;; ~I\ ~\'.'i .,'~:/<-;:;:* I .J"I (1\ I ~ ~'f.~' I" ",~~~,,~~'~%~f;~::b.\:ì1"" I ).;!~;¡~·t,':{1 ! t.~t,!tAi I _~. ti.:".7 \. ~J',:¡,...,.ilii..111 ;;..':'.)~ ~ r: ~:,-:-..., ~~I'. ,"" '~' :w~' (1 :t'.:J,~-..( I i¡:J<;J~:~~ '. ..~ t~ ~\\ \~ :'11 ¡ l --::;".- _.' . .::cc. - . '" .'>.: i, .\) .~ .k/." ,._:; ~o;¡, ...- .. -'~ .. ~'..":. :t. ......!f~I..,..I.^......'..,'.¡.7t .:,'.....:'... f:!:'i '.. ~ ¡,'I·,., ·.1:.. ",...;,...,",.". ~ - :::-... ~'i:;f~\,;:[Uti···\"~·:~{l~G~; :¿,.~. 't-J. 1" . ",~ 1 ~r II': ~' -v ~ - ~~.!-~~/*' ~~JON ë-011y ti. r: /f(~ ¡ Thomas R. ~1arshall, Jr., Executive Secretary Alaska Oil and Gas Conservation Committee Concurrence: d~u~~~~ t?-p Alaska Oil and Gas Conservation Committee OÇA¿A.tlJ~~ o. K. Gllbreth, Jr., Member Alaska Oil and Gas Conservation Committee #4 -'" ,-'On ~_. _..._...-..,~'. . . _...'.---.....~...._.,..-,...,'., .. .__.,-,_"I!'~'~""""""''' "," '"_.___.._._ ._...~.. _._,,_~. ___ '." ._..10 ~_. ._..__ ,~- ".......-..',.~..".._... ,,-- (.) () Oaœmber 7.. 1971 AI: Canservatlon Order No. 109 / Mr. C. V. Chatterton Standard 01 I Company of Call fomla P. O. Box 7-839 Anchorage, Alaska 99501 Mr. D. G. Oouvlllon Standard 011 Company of Call fom1 a 225 Bush Stmst Sun Franct sco, Call fom' a 94120 Gent lemen: The 011 and Gas Consorvatl'on CommIttee Issued Q>nservatlon Order No. 109 on November 30. 1971. An error bas ¡been noted 1n the order and the fourtb reførenœd well should be correctly listed., as follows: . Swanson RIver ~Jt 124-.33, SEI/4 SWI/4 Section 33. T. 8 N.. R. 9 W._ S.M. Please fl Ie tbls letter with Conservatlcn Order No. 109 for correction of the or..... Stnœrely, Homo r L.Burre II C'\ a ¡ rmaR Alaska 011 end Gas Ca'aservatJon Committee HLB:HWK:J_ #3 ~) --) NOTICE OF PUBLIC HEARING STATE OF ALASKA DEP ARTMENT OF NATURAL RESOURCES Alaska Oil and Gas Conservation Committee Conservation File No. 109 Re: The application of Standard Oil Company of California for an exception to Conservation Order No. 8 and Section 2061 (b) of the Oil and Gas Conservation Regulations to permit the drilling and completion of four oil wells on a 40-acre spacing pattern in the Swanson River Field and relief from the minimum distance of 1000 feet between oil wells producing from the same pool. Notice is hereby given that the Standard Oil Company of California has applied for an order to permit the directional drilling of four oil wells, designated Soldotna Creek Unit #42-5, #33-8, #44-33 and the Swanson River Unit #24-33, in the Swanson River Field. The projected bottom hole locations of these wells are as follows: Soldotna Creek Unit 1142-5, SE 1/4 NE 1/4 Sec. 5, T. 7 N. , R. 9 w. , S. M. Soldotna Creek Unit #33-8, SE 1/4 NE 1/4 Sec. 8, T. 7 N. , R. 9 w. , S. M. Soldotna Creek Unit #44-33, SE 1/4 SE 1/4 Sec. 33, T. 8 N., R. 9 W., S. M. Swanson River Unit #24-33, SE 1/4 sw 1/4 Sec. 33, T. 8 N., R. 9 W., S.M. Conservation Order No. 8 established a spacing pattern of 80 acres per well and Section 2061 (b) of the Oil and Gas Conservation Regulations requires a minimum distance of 1000 feet between oil wells producing from the same pool. The application states that these four wells are required to increase the ultimate recovery from specific Hemlock sand intervals in a faulted reservoir area. 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 ~) ) Conservation File No. 109 Page 2 9:30 a.m., November 22,1971, 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. úl. c( J#t-JJIl Thomas R.Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish November 10, 1971 ) AFFIDAVIT OF STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) S5. l-1ary L Shake ..... ..---...... ....-- --....-..... .,......- -............-.. ..... ....... being first duly sworn on oath deposes a·nd says th~t...ßl1.e...... Is the....~~g~;!..--Q~~!~.... of the Anchorage News, 8 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 a·1I 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 .J~~g~~1.J~~~:á-.ç_~..1202 8S it was published in reguler issues (and not in supplemental form) of said newspaper for. a period of ......'?J?:~m... insertions, 10 commencing on the ............day of ....Nºy~J!l.þ.~X'..___, 19 .7.4.. , and ending on the..._--;!-.º........ day of November 71 of ................................, 19........, both dates . inclusive, and that such newspeper 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 $ 18 · 50 which amount has been paid in full at the rate of 25¢ per line; Mini- mum charge $7.50. ~~~..n.~J~ Su~~~ed sworn to before . November me this ........ day of...................., 71 19nnn~ ¿ , ......__........~,.'?t.¿~.. ....~~ the Stete of Aleake, third Division, Anchoreg., Aleske MY COMMISSION EXPIRES ~-,--¿¿_ 19._4( PUBLICÅ TION f.lonJ.i':;':'~.~But .HEÃRING . ·1 ,',:STA1EOF ALAS~A. .. : I DEPARTMENT ÖF :NATURAL. RESOURCES:. 'I Alaska Oil. IInd .. Gas ConservatIon Comm'jtt~e 'Conset~a:ti6!1FJlè·· No. 109 ... 'it . Rei The. applf~ation· o.fStan~~rdÓÙ,;ê~ffi.:: .,pany,of ·Calffømla..for .e""~eJ!èe~.tjòn;::'tð" Conservlltion . .O~der ... Nó(~. n~'.se~tJ.o'ni, 2961 (b) øf.theØllen~'iGII~' Co~serYeHQrii Reouletionsto permIt :t~'e 'drliÙrig·l~d:' compl.etion of. fourolr\¡~~U.:¡h'O:!1. 4ø.: 8crtfspacing·. Þatter,,··' rn'''liltJ1¡¡''sw~n~6l . River Field and rl'llef .froM' 'hi rnln1rnlJITI distance .. of' 1'000... .feeribetyleen ·.~ilw~II$: pr.oducln~ fro~ the s8~e POOI~'·.li" I:' Notl~1 .11 . h~rebygiVen:¡iH,~t't;tlï;i·'St¡~d·e!t~:'1 ,011 . Cómpany~ ~f ~enf,I'n.lè·t. ...'.~pll~d' I' fbr an ·order'.'.t, ). P.. erm... ..'...t..':. ,~i .. ".dlr .. '.I~.n. '~¡t.d~.illllnö.: of four olr... Wells,' ~e~': ·..ateil)'· ~Icìotri~: .Creek Unit No. 42·5, No.>'3". , No.. ':44~3 IInd the SWllnson RIver ~~It "No. '~~~~~i:ln the SWllnson River Fleld.·,·,:t~prol~t" ~ottom hole loc.tlonl.of thes" w~ }":.~r'i;ij followsl Soldotge~reekUn if:,,.~;~\,~~;¡:!~/4N,E'Á Sec. 5, T.. 7'Ni¡...·R.;~t!.w:./.fJ~'M:.::)\,.. . SOldotna Creek .Unlt No.S3;8t.;~.~1ANE1A Sec. 8, T. 7 N.,. R.¡' -W"S¡M!i.~ Sol~otne cr..lç.Un~!I""·~~'..~' 11'4. . S~V1 Sec. 3~, :1· "~~N,,;, :~f t~W:,. S.M. . SWllnson Rlver'.Un,~¡:·.1~ø. .'~~~, SE14 SW1A Sec.' ~3, '. T. ·.8' ·N" R." 9;1 'W., Si.M. . ... COnlerv.tløn ,~o,~~.'~~~~;.r'Îtii'bns~;Îldìì ,s,p.clng· patt.rn '0f.~80· .cr,s:'þ.r w.n en·d Section 206HÞt~f.·.th. ()!·I.~and .GI'. ConHr~' v ltlon . Regule~I~~i';r.~ulr's·. mlnlmu", dls~ tanct,of "lOOOf:lift~:.þetweenoU. Yf$U~ pro. d,ûçlng frò~', !,b'·',,:_.lril' . pool~ Tht epPp~cl~ tlon stete. tliet· thesl. .four.: Wenl:'lr't'~ qulr.d to Increes. th,:)Ultlmeft' Ii.·c.( .v~~y: fr?m . specific .. Hemlock IlInd tnt"r:val*:'~ [ft.'.e:, I fe Jlted reser:Olr .er~e. ..~. ../,:'.. .......... .'. :'~?.::: i Pursuant,to·:'tlfle. ·".1,.~;t"ske·iAd~'rI'¡~t·~.) I. tlve Code,Sectlon2009,',p,lrtlef w~,¡ }rniv b.løgrl.vtffil¡f~,'.the 'r.questedor~ lr IsIs...· sued ere.ellðW I~ .10 days from. .thedetê Of... thl.S.... .P.JI..b....I."'.I...~.~.....~..!.~..!lt'l. \.1"'.... :.\~..L .,....~.I~.b.t...O..fIIJ,....'.'.: .~O.....J. .... test IInd req,IUI$~,¡:.l!'~,I, ,,~rlnCl;,' Tht' ple~" of filing' Is':,30()F"P~~ )'Inl Drlv.; A'nchllr.i eoe, . AIIISk. e. .... CXI.. .. ~~.. .'. ... .,,~.;~f'l. uch .. , P. rot.. ,st. . "Is.... . timely .flJ~~, a'"hèllrlnø:'~ the matterwlil be held . lit the:IÞ~Ir~ ~cl.dresl . .t . 9:3Ó:~,q1~, November 22, '. .1f·~¡'·· .f· whIch tlm. PrQt.¡¡s~: t.nts IInd othel'f·:m.y.ti....,heerd. If n~'.loch . protest Is tImely filed, the' Committee. w IJ . consider the Issuance of the order without a hearing. Thomas R. Marshall, Jr. Execut·IVI . SecreterY Alesk.·.o., .nd Gill ·Conservetlon Committee 3001 PorcupIne Drlvt Anchor."., Alaska 99504 Publish. Nev.mber 10,~9') Leg.' ·NotiWNe.; 11502 2 ~.:...: .;;;;:0 .-.- > :~.: ~' ~."' "- 9 ~~ £.:-! :> I ~ ~;: , '. _. .. . ..... ~: '../~ #2 ( ( ( SWANSON RIVER FIELD SPACING VARIANCE FOR ~1ELLS SCU #42-5, 1;44-33, 1Þ33-8, and SRU #24-33 November 4, 1971 GEOLOGIC REPORT IN SUPPORT OF THE VARIANCE Oil entrapment at the Swanson River Field is in an anticlinal 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. -W.itb.-.-t:.he-a.nticlinal.~lexu~-tens-iona-1-fau1ting -occurred. The maj ori ty- of the faults located to date are normal faults, oriented roughly in an east-west direction with the north block down thrown. They have been 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 cross-sections using all available electric logs and dipmeter data. Displacements on faults vary from less than 100' to over 300'. Fault plane dips vary from 40° to near vertical. The faults show increasing displacement in a westerly direction within the field limits. ( The oil productive portion of the Hemlock reservoir consists of at maximum ten sands south of Fault E. Sand deposition was not uniform across the entire field and sands shale out at some locations and merge at others. The ten sands are identified on the type log on Exhibit A. Of these ten sands, sands 1-5, 8, and 10 are öf largest. areal extent and of prime.importance. These three major intervals are separated by continuous impermeable barriers that prevent pressure communication. The original productive limit lines for the separate sands were determined from detailed electric log, r~servoir and seismic analysis, and from formation testing. Structural contour maps have been prepared on the top of sands 1; 8, and 10. Sands 1~5, 8, and 10 have different original oil-water inte~faces. A composite map, Exhibit B, depicting the structure on the top of sands 8 and 10, and the original oil water contacts for sands 1-5, 8, and 10 is attathed. Faulting plays a major role in the ·accumulation of oil at the Swanson River Field, and faults or portions of them are barriers to.fluid movement. The productive limits of the Hemlock sands are not only located at different subsea depths across some barrier faults, but are offset by them. Along the western flank·of the structure, for example, faults C, D, and E ar~ barriers in the ten productive Hemlock sands. Please refer to Exhibit B. ( Dl'lilf-J10t' nt: r"t ....., . ^N(:;N~.;;f~.t~'J~''¡¡) (:iiA$ " "~~I~~.) ! ( (.' GEOLOGIC P~PORT IN SUPPORT OF THE VARIANCE - 2 - ( The geometry of the present 80 acre spacing pattern, barrier faults, and productive limits of the naturally separated producing sands will not allow for complete reservoir drainage in all ten sands. Wells Soldotna Creek Unit 42-5, 44-33, .33-8, and Swanson River Unit #24-33 require a variance from 80 acre spacing to 40 acres and a variance for a bottom hole location closer than 1,000' to the nearest producer. These wells are required to increase the ultimate economic recovery ,from specific Hemlock sand intervals by adequately draining the surrounding fault-related reservoir area. These intervals are as follows: Well No.· Hemlock Sand Interval Requiring Additional Drainage -.' ..--...---- SCU 1142-5 SRU 1124- 3 3 SCU #44-33 SCD 1133-8 __"'·._h· ,__,_.. ,._ .__..__. _ ___ _ ._ _ _ _, _,.__.._ __ ___., - .--.--...---.- - 8 & 10 8 & 10 10 8 & 10 The proposed wells will also be completed to accelerate oil recovery from selected upper intervals, sands 1-5, which have not been thoroughly swept by gas. ( The proposed bottom hole location target for directionally drilled, sand 1-10 well, SCU 42-5 is approximately 400' west and 1550' south of the northeast corner of Section 5, T-7.;.N, R-9-W, SB&M. At this location, well seu l~2-5 will be approximately 900 ' away from existing 1-5 sand well SCU 41-5. Fault D, considered a barrier in this area, cuts the Hemlock Zone between the two locations. The displacement on Fault P is such that the 8 and 10 sands are wet at seu 41-5 but should· be oil bearing at SCU42-5. The nearest sand 8 and 10 producer, well SCU 12-4 is located approximately 1,OOO'away. Please refer to Exhibits Band C. The proposed bottom hole location target for directionally drilled, sands l-lO,.well SRU 24-33, is approximately 100' north ·and 3200' west of the southeast corner of Section 33, T-8-N, R-9-W, SB&M. At this bottom hole location tv ell SRU 24-33 will be approximately 1,000' away from existing sands 1-8 well seu 21-4. At the proposed location for SRU 24-33 smd 10 should be oil bearing whereas it is wet at seu 21-4. The nearest sand 10 producing. we1l,SeU 34-33, is approximately 1,200' away. Please refer to Exhibits Band D. ( The proposed bottom hole location target for directionally drilled, sands 1-10, well seu 44-33, is approximately 650' north and 500' west· of; the southeast corner of Section 33, T-8-N,R-9-H, SB&M. At this bottom hole location, well seu 44-33 will be approximately 1,150' away from e~isting sands 1-8, well seD 14-34. At thepropos~d location for seu 44-33, sand 10 should be oil bearing 1;.¡hereas it is wet at SeD 14-34. The nearest sand 10 producer, well seu 34-33, is approximately 1500' away. Please refer to Exhibits Band D. (' ( ( GEOLOGIC REPORT IN SUPPORT OF THE VARIANCE - 3 - The proposed bottom hole location target for directionally drilled, sands 1-10 well, SCU 33-8, is approximately 2100' south and 1000' west of the northeast corner of Section 8, T-7-N, R-9-W, SB&M. At this bottom hole location, well SCU 33-8 will be approximately 1000' away from existing sands 1-5 well SCU 32-8. Fault· B, considered a barrier in this area, cuts the Hemlock Zone between the two locations. The displacement is such that sands 8 and 10 are wet at SCU 32-8 but are expected oil bearing at SCU 33-8. The nearest sand 8 and 10 pro- ducer, well SCU 43-8 is approximately 1200' away. Please refer to Exhibits Band E. Possible future target adjustments or directional drilling problems could alt~r the above indicated distance from the nearest producer to where they are slightly less than 1,000'. With the relatively large reservoir volume to be drained by these wells and the tight directional target required to achieve optimum reservoir position, Standard does not feel that spacing slightly less than 1,000' to the nearest well can be detrimental in any way. ( ( { (' ( ENGINEERING REPORT IN SUPPORT OF THE VARIANCE During 1966 full scale gas injection commenced at the Swanson River Field. The objective of the gas injection project is to sweep the Hemlock oil sands with gas while maintaining the reservoir pressure at a level that will give the maximum ultimate economic recovery. The gas injection ,qells are marked with a red arrow on Exhibit A. The project is performing a little better than original predictions and can De considered a marked success. By drilling the proposed variance wells, SCU 42-5, 44-33, 33-8, and SRU 24-33 reserves \'lill be produced that can be classified as ne1;>1 and accelerated. Ne1;~ reserves, which will increase the maximum economic recovery, result from increasing the areal sweep efficiency of the gas injection project between the injection well(s) and the new well. Accelerated reserves result from the establishment of a drainage point now, compared to oil recovery from other wells at blowdmoJn of the field in. 10-20 years. ( On the attached Exhibit B, the juxtaposition of the separate sand 8 and 10 producers, injectors and original productive limit is shown. That portion outlined by Zipatone is the estimated area of increased areal sweep efficiency and recovery for the particular sand at each new well location. If the proposed variance wells were not drilled, the indicated pattern would not be established, a poor areal sweep efficiency· will exist and the estimated new reserves would. not be recovered. This would result in an attendant loss of ultimate economic recovery for the entire gas injection project. ( ( i'!" ~1 ( Su}~~RY OF GEOLOGIC AND ENGINEERING EVIDENCE IN SUPPORT OF A VARIÞ.NCE FOR HELLS SCU 42-5) 44-33, 33-8, & SRU 24-33 1. 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. 2. The geometry and configuration of the present 80 acre spacing program with the respect to the location of barrier faults and productive limits does not allow for adequate reservoir drainage in all areas in all sands. 3. Under the existing gas· injection project, a poor areal sweep efficiency exists in some areas in certain Hemlock sand bodies due to a shortage --- of-ëãrefiïfly-'posìtìonecTproâuc"iñg-wells.- d_ - --- --- o·__"__p -"- 4. Completion of the proposed Soldotna Creek Unit wells, 42-5, 44-33·, and 33-8, and Swanson River Unit well 24~33 .will alleviate the above situations by providing a necessary withdrawal point which will allow for an increased areal sweep efficiency, increased reserves, and accelerated oil production. These factors will aid in providing the maximum ultimate economic oil recovery from the S1;.¡anson River Field. ( ( #1 Chevron === C. V. Chatterton District Superintendent Producing Department ) _.1.., DIR..._J~/ I c. GEOL I ----·r-·c·,' 'ÉNG'-¡ -r--T"ENG'- - -1-2'-'E·¡'-k;'-·1- -r-j· 't'NG-·-r' '--"-'4" ÊNG'·¡· '--'r' Š-.ENG--'-T-. ~r'--i..·GE()Cl-- . ---r~i'GEOCr -r'ä ·.GE()I'-l- -,-'REV '·--1-- . -'-ÕRAf='-r-r __L__,·~~ËC-~ CONFER: '-FlLE: ¡I,.r~\? .' /Ì;t I1d r;-J e //1.1 Os (;t ìr Ó# Ia led _:~!~~!Š" ) Standard Oil Company of California, Western Operations, Inc. p.o. Box 7-839, Anchorage, AK 99501 · Phone (907) 279-9666 November 3, 1971 Application for Exception to Conservation Order #8 Da ted May 11, 1962 and . Section 206l(b) of the Oil and Gas Conservation Regulations Swanson River Field, Alaska Mr. Homer Burrell, Director Division of Oil and Gas Department of Natural Resources 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Burrell: Standard Oil Company of California, as Operator of the Swanson River Field for itself, Atlantic Richfield Company, Union Oil Company of California, and Marathon Oil Company, proposes to drill four direction- al oil wells, designated Soldotna Creek Unit #42-5, #44-33, #33-8 and Swanson River Unit #24-33 within said field on unitized lands with bottom hole locations projected to 40-acre legal subdivisions described as the SE 1/4 NE 1/4 of Section 5, T. 7 N., R. 9 W., S.M. for SCU #42-5, SE 1/4 NE 1/4 of Section 8, T. 7 N., R. 9 W., S.M. for SCU #33-8, SE 1/4 SE 1/4 of Section 33, T. 8 N., R. 9 W., S.M. for SCU #44-33 and SE 1/4 SW 1/4 of Section 33, T. 8 N., R. 9 W., S.M. for SRU #24-33. The proposed wells will require an exception to Conservation Order #8, dated May 11, 1962, which established the 80-acre well spacing for the entire Swanson River Field. Conservation Order #8 was silent with respect to Section 206l(b) , entitled "Well Spacing" of the Oil and Gas Conservation Regulations as it relates to the distance between producing wells. Because of the fault pattern and geology of the Swanson River Field certain of the wells are projected to be nearer than 1000' minimum as required by Section 206l(b). This is discussed in detail in the Geologic and Engineering Report. R f "... r \ 'i .- :\ )i , å. ~ .L·;.... Nn \,( . ,'-' I' ~,VI~'l..'i·,: ~¡. Ull "'1'\\1..1 Ç?t\~ ". ~;('NP':~,~l! $' ) ) Mr. Homer Burrell, Director Division of Oil and Gas Department of Natural Resources Nov. 3, 1971 -2- 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 nay be disregarded for the purposes of drilling the wells 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" showing the structure on top of sands 8 and 10 and the original oil-water contacts. 4. Exhibit "c" showing the geologic cross-section through well SCU #42-5. 5. Exhibit "D" showing the geologic cross-section through wells SRD 1124-33 and SCD 1144-33. 6. Exhibit "E" showing the geologic cross-section through well SCD 1133-8. 7. Exhibit "F" showing the Lease Status as superimposed on Exhibit "A" hereof. Now, therefore, Standard, as Operator, hereby respectfully requests that an order be issued pursuant to Title 11, Alaska Administrative Code, Section 2009, for the purpose of granting an exception to Conservation Order 118 and Section 206l(b) of the Oil and Gas Conservation Regulations, authorizing the drilling of the proposed wells to the projected location within the above-described 40-acre legal subdivision. Ras'þ~~:c ~-, _~~it~/ed~~ / ø. /1 /;' . -.- / /'1:. / ' (", I 7ø/kt C. V. Chattérton Enclosures