The URL can be used to link to this page

Home My WebLink About2021 Deep Creek UnitPage 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 correcting to datum pressure using a gas gradient of 0.03 psi/ft) are shown below. The resulting average reservoir pressure by major zone is shown below. Since no new static surveys were conducted in 2021, updates for all sands are based upon the latest SITP value and assumed pressure gradient to datum. Note these data points may not be accurate due to unknown fluid columns but fall in line with the produced volumes. b) Workovers & surveys of the existing wells. a. No new drill wells were brought online in 2021. b. No workovers were conducted in 2021. c. There were two Pressure/Temperature surveys run in 2021 in HVB-17 following well work interventions which added perforations: i. 2/2/2021 – Following the addition of the Tyonek 17L (“T-17L”) perforations, a PT survey was run across the T-17L sands, indicating no contribution, the remainder of the production was assumed to be entering the wellbore through the Tyonek 91 (“T-91”), since it was the only other sand open in the wellbore. ii. 4/2/2021 – Following the addition of the Tyonek 17u (“T-17u”), Tyonek 7 (“T- 7”), Tyonek 6d (“T-6d”) and Tyonek 6b (“T-6B”) a survey was across all open Well Top Perf Depth (MD) Major Formation Pressure at Datum (psig) Shut-in Tubing Pressure (psig) Date Pressure Taken HVA-01 7,155 Lower Tyonek 1,145 875 3/10/2022 HVA-08 4,972 Beluga 1,095 945 2/18/2022 HVB-13 3,798 Upper Tyonek 829 604 12/31/2021 HVB-14 1,689 Sterling 350 290 3/10/2022 HVB-16 3,446 Upper Beluga 1,205 1100 3/10/2022 Happy Valley Major Formations Sterling Upper Beluga Beluga Upper Tyonek Lower Tyonek Datum Depth (TVDss)2,000 3,500 5,000 7,500 9,000 Initial Pressure (psig)860 1,505 2,150 3,225 3,870 Est. Pressure (psig)350 1,205 1,095 829 1,145 Page 3 sands. The analysis of the PT survey indicates the following gas contribution from each sand: c) Production for 2021 Calendar Year (sub-divided by major formation) d) Progress and tests to expand pool productive limits. No new exploration and development wells were drilled by Hilcorp in the Happy Valley PA during the 2021 calendar year. Sand Contribution (%) T-6b 18% T-6d 4% T-7 7% T-17u 36% T-17L 36% T-91 0% HVB-17: PT Survey 4/2/2021 Sterling Upper Beluga Beluga Upper Tyonek Lower Tyonek HVA-01 ------ HVA-02 41,911 ----41,911 HVA-03 ------ HVA-08 84,481 --21,106 63,375 - HVA-09 ------ HVA-10 77,182 ---77,182 - HVA-11 ------ HVB-12 313,700 ---126,686 187,014 HVB-13 56,326 --5,046 51,280 - HVB-14 ------ HVB-15 239,855 -239,855 --- HVB-17 527,882 ---469,815 58,067 Cum Gas Volume (MCF)1,341,337 0 239,855 26,152 788,338 286,992 Well 2021 Cumulative Production, Happy Valley Tract Happy Valley PA