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Phillips applies to expand Kuparuk Five areas, 51,168 acres, to west, south, east of unit include Palm discovery area and area to south of Palm, also West Sak and Kuparuk River formation extensions Kristen Nelson PNA Editor-in-Chief
Phillips Alaska Inc. has applied to the state to expand the Kuparuk River unit in five areas, a total of 51,168 acres, to include both an announced discovery, Palm, areas near existing production, and areas which need to be confirmed with wells.
In an application to the Department of Natural Resources, Division of Oil and Gas, for the eighth expansion of the Kuparuk River unit and the ninth expansion of the Kuparuk participating area, Phillips proposed additions to the unit of two areas on the west, one on the south, one on the southeast corner and one on the east.
All but two of the leases proposed for addition are already aligned by Greater Kuparuk Area ownership: Phillips Alaska 55.293767 percent; BP Exploration (Alaska) Inc. 39.282233 percent; Union Oil Company of California 4.9506 percent; ExxonMobil Alaska Production Co. 0.3658 percent and Chevron U.S.A. Inc. 0.1086 percent.
One of the two nonaligned leases is due to be offered to the greater Kuparuk owners upon lease issuance; the other is due to be assigned to the GKA partners. Palm discovery largest area The area at Palm adjacent to the existing unit on the west is the largest proposed for inclusion: seven tracts, 17,584 acres. Phillips is developing drill site 3S to produce the
Phillips told the state that portions of the leases in the proposed expansion are planned to be developed during the winter 2002 and 2003 drilling seasons, targeting the hydrocarbon accumulations discovered in the Palm exploration program.
Because production from Palm is scheduled to begin Oct. 1, Phillips is asking for approval of the proposed expansion by Sept. 1.
Both the Palm No. 1 and No. 1A wells “penetrated reservoir quality sands in the Kuparuk C4 interval,” Phillips said, and well testing in April produced a final rate of 2,350 barrels per day and a 26 degree API gravity oil. The company said the Palm wells are in communication with the main Kuparuk reservoir.
One drill site is planned for the Palm development, with approximately 20 wells, 19 new ones and re-use of the Palm No. 1A well.
When Phillips announced the Palm discovery last year the company said the Kuparuk formation sandstone at approximately 5,800 feet subsea has been estimated to contain 35 million barrels of recoverable reserves. Second expansion area south of Palm The second proposed expansion area is five tracts adjacent to the southwest corner of the Palm tracts, 10,048 acres, four miles west of the existing Kuparuk River unit boundary. Information on this area is from interpreted seismic data, with 3-D shot over a portion of the area in 1997.
Phillips said an initial appraisal well would be drilled in the area south of Palm in the winter of 2002-03 or the winter of 2003-04 from an ice pad. If that well is successful, development would be from a new gravel pad. South of existing unit The third expansion area is four tracts, 10,203 acres, extending the existing unit to the south. The companies acquired 3-D seismic over this area in 2001 and information on this area is from interpreted seismic data. Phillips said wells were drilled in the vicinity in 1978, 1979, 1989 and 1990.
An initial appraisal well would be drilled from drill site 2G to within 1,000 feet of the northern border of ADL 365168 (directly adjacent to the proposed expansion area) during 2003. In the event of a commercial discovery, Phillips said, development drilling would be from a new gravel pad. West Sak addition at southeast corner The fourth proposed expansion area is four tracts, 10,133 acres, at the southeast corner of the unit. Phillips said there is a long history of West Sak evaluation from the 1J pad and in this proposed expansion area, and while exploration and delineation efforts have helped establish the general extent of the West Sak in the 1J and fourth expansion area, the commercial potential of the area has not been established.
The plan for this area is horizontal production from multi- and single-lateral wells.
“Development drilling at future drill sites 1K and 1P are planned after establishing West Sak production at DS-1J,” Phillips told the state in its application. Drill sites 1K and 1P would develop the area south of DS 1J partially outside the existing unit.
The company said that development of some of the resources in the area “may become feasible from DS-1J if technological advances continue.”
The company also said that additional West Sak development drilling is planned at existing Kuparuk River unit drill sites 1B, 1E, 1H and future drill site 1M.
Drill site 1J will be expanded with a 12-inch water injection line, a 24-inch production line to Central Processing Facility 1 and extension of the electric power network to DS-1J. A minor gravel addition is also planned to accommodate rig access and pipeline pigging. Kuparuk formation extends into fifth expansion area The fifth, and smallest, of the proposed expansion areas is on the eastern edge of the existing unit and includes two tracts and 3,200 acres. Phillips said the 1M-17 appraisal in 2001-02 found Kuparuk River formation reservoir quality sands. It appears, the company said, that the Kuparuk River reservoir extends southward into the expansion area with oil properties very similar to the main Kuparuk River field.
Phillips said 1M is a future drill site at an existing gravel pad connected to the main Kuparuk River unit spine road by an existing road. There are two wells at the site, and Phillips said the DS-1M development plan includes upgrading the existing road with a bridge over East Creek, extending existing Kuparuk River pipeline and electric power to the DS-1M pad and constructing on-pad facilities for 18 future Kuparuk River reservoir wells and use of the two existing wells.
West Sak reservoir development is also planned at DS-1M with eight to 12 horizontal wells.
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