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Home My WebLink AboutCO 789INDEX CONSERVATION ORDER NO. 789 Cannery Loop 1) November 21, 2019 Hilcorp request for Spacing Exception CLU 5RD 2) November 21, 2019 Notice of Hearing Application withdrawn by Operator Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO-19-022 The application of Hilcorp Alaska, LLC for an exception to the spacing requirements of Conservation Order No. 231 for the CLU 5RD development located in Cannery Loop Unit. Hilcorp Alaska, LLC, by letter received November 21, 2019, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the spacing requirements of Conservation Order 231 to recomplete, test, and produce the CLU 5RD well in the Tyonek Gas Pool within the same governmental quarter -quarter section as one other well that is, or maybe capable of, producing from the same pool. Cannery Loop 5RD Surface Location: 171' FSL, 281' FEL, Sec. 7, T5N, RI 1 W, Seward Meridian Target Location: 1921' FNL, 1609' FEL, Sec. 8, T5N, RI 1 W, Seward Meridian Bottom -hole Location: 1898' FNL, 1615' FEL, Sec. 8, T5N, RI 1 W, Seward Meridian The AOGCC has tentatively scheduled a public hearing on this application for January 2, 2020, at 10:00 a.m. at 333 West 71 Avenue, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on December 12, 2019. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after December 13, 2019. In addition, written comments regarding this application may be submitted to the AOGCC at 333 West 7s' Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on December 26, 2019, except that, if a hearing is held, comments must be received no later than the conclusion of the January 2, 2020 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at (907) 793-1221, no later than December 27, 2019. //signature on file// Jessie L. Chmielowski Commissioner Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 1400 . Anchorage,: AK 99503 Mcorp Alaska, LLC Phone: 907/777-8432 ' Fax: 907/777-8301 Email: cterneWhllcorp.com November 21, 2019 Jeremy Price, Chair Commissioner Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99561 RE: Application for Spacing Exception CLU 5RD Gas'Well Cannery Loop Unit, Alaska Dear Commissioner Price: Hilcorp Alaska, LLC ("Hilcorp'% as sole working interest owner of the Cannery Loop Unit ("CLU'), requests permission to recomplete, test, and produce the CLU 5RD well in the Tyonek Gas Pool, as defined in Conservation -Order 231 ("CO 231"), within the same quarter -quarter section as one (1) other Cannery Loop well producing from the same pool. In accordance with20 AAC 25.005, Hilcorp submitted an. application for a Permit to Drill the CLU 5RD well to AOGCC which was approved. Recompletion operations for CLU 5RD are expected to commence roughly on January 15"', 2020. The CLU 5RD well recompletion will be targeting the Tyonek Gas Pool. Prior to recompletion of the CLU 5RD well within the Tyonek Gas Pool, this spacing exception will be required under CO 231, Rule 3: Rule 3. Well Suaeing: A Drilling Unit for the Beluga, Tyonek, or Tyonek "D" Gas Pool is established as the quarter -quarter subdivision of a governmental section occurring within the affected area. A spacing exception is necessary because CLU 5RD will be the second well open to or producing from the Tyonek. Gas Pool located in the S W4 NE4, Section 8, Township 5 North, Range 11 West. CLU 1RD is also located within the SW4 NE4, Section 8, Township 5 North, Range 11 West, and is producing or capable of producing from the Tyonek Gas Pool. The CLU 5RD well is located on the CLU No. 1 Pad within the Cannery Loop Unit. The well is located on a Hilcorp own lease, a private lease, and State lease ADL 324602 (see Attachment 1). The anticipated productive intervals are located on State lease ADL 324602. • Surface Hole Location (SHL): 171' FSL, 281' FEL, Sec 7, T5N, R11 W, SM, AK • Top of Productive Horizon (TPH): 1921' FNL, 1609' FEL, Sec 8, T5N, R11 W, SM, AK • Bottom Hole Location (BHL): 1898' FNL,1615' FEL, Sec 8, T5N, Rl I W, SM, AK The CLU 5 well was originally drilled in 1996 and completed as a dual string gas producer. The long string produced.a large amount of gas from the Upper Tyonek 9B [UT-9B] -sand, while the Cannery Loop Unit. CLU 5RD Application for Spacing Exception November 21, 2019 Page 2 of 4 short string produced various Middle and Upper Beluga sands. The well eventually watered out in both strings. CLU 5 was sidetracked in 2015, now the.CLU 5RD, with a strong emphasis on the Tyonek sands. The first: successful Tyonek production in the new sidetrack was, from the Deep Tyonek-5 [DT-51. The sand produced at very high rates until watering out in May 2016. In March 2017, CLU 5RD began production in the Upper Tyonek 12 [UT-121: The sand produced very well until production began to sharply decline in 2018 & 2019. While water. rates slightly increased, the decline appears to be more a function of volumetric decline, rather than due to the water production. The next prospective gas show in CLU 5RD is the aforementioned UT-9B. The new bottomhole location of the UT-9B is updip from the original CLU 5 wellbore (thus farther from the gas -water contact), as well as updip from CLU 1RD (which very recently watered out in the UT-9B). No well at.Cannery Loop is currently producing from the UT-9B. Hilcorp would like to, produce this sand in CLU-5RD to capture any remaining recoverable reserves. Hilcorp is the. sole working interest -owner of the affected oil and gas leases and the Cannery Loop Unit. The only affected landowners within the applicable quarter -quarter sections of CLU 5RD's anticipated productive interval is.the State of Alaska. Hilcorpbelieves that the correlative rights of all owners and landowners within the Tyonek Gas Pool will be protected by the Cannery Loop Unit Agreement and its corresponding Participating Areas. At the date of this mailing, a copy of this proposed spacing exception was sent by certified mail to the potentially affected (within 3060') owners, landowners and operators. The only affected parties are the State of Alaska and Hilcorp.Alaska, LLC. Also, enclosed is an affidavit stating the undersigned is acquainted with the facts and verifying that all facts asserted herein are true (see Attachment 2): Should you have any technical questions, please contact Mr. Anthony McConkey,, Reservoir Engineer at (907) 777-8460;.or you may contact the undersigned at (907) 777-8432. Sincerely, ((� Cody T. Terrell; Landman Hilcorp Alaska, LLC Enclosures: Attachment 1 (CLU 5RD Well Map); Attachment 2 (Affidavit) CC: Jody Colombie, AOGCC (via email) i Cannery Loop Unit CLU 5RD Application for Spacing Exception November 21, 2019 Page 3 of 4 ADL324604 4 r : V, Aws z LLC FEE ADL RWJ FEE ADL60569 73302 I ' V8 AD-391575 ATTACHMENT I Application for Spacing Exception CLU 5RD Well Map CLU e: VAlcarpAlaska LLC ;.Lc oino•5ian:A FEE ADL 6456Eg„ r fcw mDNA CLU-OSRI ea r r CLU-OiRD 7 m CLU CLU LLC CLU lu BHL• JOSEPHACOCI-RAN ; c r 8. cs u ss ame FEE AA0924G 1 ADL391793 W—. Alaska LLC /n FEE AA?92441 Face Y! ADL002397 Legend • CLU-05PD SHL • Other Surface Well Locations X cLU-05RD iPH • Other Bottom Hole Locations Lro A + CLU-05RD BHL -�-- Well Paths © Oil arid Gas Unit Boundary Ls. O 1.00) et 7.000 Cannery Loop Unit CLU-5RD Well Feet Alaska State Pare Zane 4. NA@7 A Definitive Survey 6Aap Date 11Qa201e Cannery Loop Unit CLU 5111) Application for Spacing Exception November 21, 2019 Page 4 of 4 ATTACHMENT Application for Spacing Exception Affidavit VERIFICATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET, ALASKA CANNERY LOOP UNIT CLU 5RD Well 1, CODY T. TERRELL, Landman, Hilcorp Alaska, LLC ("Hilcorp"), do hereby verify the following: 1 am acquainted with Hilcorp's application for a spacing exception submitted to the Alaska Oil and Gas Conservation Commision for the drilling of the CLU 5RD well in the Cannery Loop Unit, near Cook Inlet, Alaska, pursuant to 20 AAC 25.055(d). I assert all facts outlined in the above -referenced application are true. 1 further assert the requested spacing exception is necessary to drill and develop existing production of natural gas from the Tyonek Gas Pool in the Cannery Loop Unit. I have reviewed the mailing list and plat attached to said application and it correctly portrays the pertinent and required data for the Commission to take action on this request. DATED at Anchorage, Alaska this 2lst day of November 2019. /Z� Cody T. Terrell, Landman Hilcorp Alaska, LLC STATE OF ALAKSA ) ss THIRD JUDICIAL DISTRICT ) SUBSCRIBED TO AND SWORN before me this 2151 day of November, 2019. STATE OF ALASKA NOTARY PUBLIC IN AND FOR NOTARY PUBLIC THE STATE OF ALSKA� Michael W. Schoetz My Commission expires: 2�czou My Commission Expires Feb 28, 2022 d ; I ; r i i 4 �i 1. i f I !I i Pbsfal Service' Ln •, S 01i L� 1 1 L USE M1 CerM1 ad lFee O arvM& eestzhackaaKeadka®e C3 ❑fiawm gswlpt$wdmpd $ $ Pastmah G [jgowm(bwrytid ) C3 aWlled tlellgasUtctea p¢pvmy $ Hare p pnaults^1%ssmu-. pa aehaa 9�a Pe wm oemay$ $ /l\, Postage (1l Totel Postage and Fear O Sent To C3 06 ARctac area �i - o -fJG:X iit Rtsa�cft^Ps; M1 E A . i 1 I .1 1 I i I