Alaska Oil and Gas Conservation Commission issues Meltwater oil pool orders; says no to including Cairn interval

Kay Cashman

In response to a March 12 application from Phillips Alaska Inc., the Alaska Oil and Gas Conservation Commission issued area injection and conservation orders in early August allowing underground injection of fluids for enhanced oil recovery and establishing pool rules for the development of the Meltwater oil pool. The pool is in the Meltwater participating area of the Kuparuk River field on Alaska’s North Slope.

The scope of the Meltwater drill site 2P development project involves drilling 26 wells. Phillips, the field operator, has drilled three exploratory wells into the pool; the Meltwater North 1, 2 and 2A.

Phillips recommended both the Bermuda and the Cairn intervals be included in the Meltwater oil pool but the commission concluded that there was “insufficient information available” to include the Cairn interval in the oil pool “at this time.”

Exception from the gas-oil-ratio limitations was approved, provided enhanced recovery operations begin within six months of regular production.

The commission also concluded that commingling of Meltwater fluids at the surface with fluids from Tarn and Kuparuk was appropriate “provided there are adequate well tests to assure accurate production allocation.”

Phillips has applied to the Alaska Division of Oil and Gas to expand the existing Kuparuk River unit to encompass the southern half of the proposed Meltwater oil pool and approve a Meltwater participating area. State officials told PNA Aug. 8 that a “partial decision was being circulated between agencies” and would likely be released by Sept. 2. The Bermuda interval is expected to hold 132 million barrels of oil with between 47.5 million and 52 million barrels expected to be recoverable. Production is expected to begin at the end of this year, with peak production in early 2002.

Phillips, BP Exploration (Alaska) Inc., Unocal Corp., ExxonMobil and Chevron U.S.A. Inc. are working interest owners in the field.