The company, which took over unit operatorship in November 2017, has drilled 19 new wells at Milne so far this year, including one S pad Ugnu producer, and expects to drill another seven wells before the end of the current plan of development, or POD, including two S pad Ugnu wells.

Unlike the Schrader Bluff viscous oil already produced from the unit, Ugnu crude is much heavier and more difficult to extract.

Hilcorp said it would be doing S pad "facility upgrades and infrastructure" under the current 37th POD to support 2020 Ugnu heavy oil development.

The Milne Point field consists of four oil pools; starting with the shallowest they are Ugnu, Schrader Bluff, Kuparuk River and Sag River. Currently, oil produced from Milne is the viscous Schrader Bluff and the lighter Kuparuk oil. The 37th POD said the field will soon again be producing from both Ugnu and Sag River.

Listed in the new POD were major facilities projects completed in the unit so far this year, including the Moose pad facility and pipeline start-up; permitting and planning activities for the new Raven pad (see page 1 article on this new pad in the Oct. 20 issue of Petroleum News), and polymer injection activities, such as engineering for Moose pad, discharge pressure upgrades for J pad, filter pot addition for J and L pads, and engineering and procurement for the F pad polymer injection facility.

During the eight months ending Aug. 31, the average daily production rate at Milne Point was 23,322 barrels of oil per day, Hilcorp said. During the same period last year, the daily average was 20,590.

During the 38th POD, Hilcorp anticipates drilling up to 28 new wells, completing as many as 20 well workovers and undertaking eight key facility projects, as well as several others.

Potential drilling candidates include 16 Moose pad Schrader Bluff wells, two Moose pad Kuparuk wells, three S pad Ugnu wells and seven S pad Schrader Bluff wells.

The facility projects the company expects to undertake may include Moose pad upgrades to the test and production headers, "J and L pad polymer silo upgrades, F pad polymer facility installation and start-up, Moose pad polymer facility installation, 2020 shutdown for A-train process vessel inspections and upgrades, LM2500 turbine overhaul completion, portable heater for test separation, and portable test separator."

Other Milne Point projects may include Raven pad design and civil work, S pad facility future expansion, S pad polymer engineering/procurement and diesel to slop oil tank conversion.

Hilcorp said it is continuing to evaluate future drilling opportunities as well as potential undeveloped resources in the field.

- KAY CASHMAN

See story in Oct. 27 issue, available Friday, Oct. 25 at www.PetroleumNews.com.