Badami plan of development OK’d; Savant says drilling is possible
The Alaska Department of Natural Resources’ Division of Oil and Gas has approved the plan of development for the Badami unit, operated by Savant Alaska, a Glacier Oil and Gas company, for the period July 16 through July 15, 2023.
The Badami unit was formed in March 1995 with BP Exploration (Alaska) as operator, the division said in its June 8 approval. The unit is some 25 miles west of the Point Thomson unit and 30 miles east of Deadhorse on the Beaufort Sea coast. Savant succeeded BP as operator in 2008.
The division said that as of April 30 cumulative production from Badami totaled 10.052 million barrels of oil, with average daily oil production over the past year of 1,055 barrels per day, an 18% increase from 890 bpd the previous year.
Savant filed the 19th plan of development for Badami April 18. In its long-range proposed development, the company said it intends to drill, but that is dependent on economic conditions, including stable oil prices and the company’s ability to raise capital at reasonable terms.
18th POD work accomplishedIn its approval of the 19th POD, the division listed Savant’s proposed work for the 18th POD, the 2021 plan:
*Gas lift optimization on Badami B1-07.
*Production logging on Badami B1-36.
*“Continue compliance work and further engineering work related to infrastructure, tie-in and additional processing requirements for the Badami East Pad.”
*“Continue well and facility maintenance, optimization, and explore options to enhance production as appropriate.”
The division said Savant completed all the operations and also added perforations to B1-36. “Gas lift optimization improved production from the B1-07 well,” the division said.
Plans under previous PODIn discussing the previous 18th POD in its current proposal, in addition to the work which the division noted as completed under that plan, the company listed a number of activities qualified by “as economic conditions warrant.”
*Subject to economic conditions, “further the planning development activities for the new Badami and Killian sand prospects.”
*Subject to economic conditions, do an additional well workover on a Class 1 injection well, B1-01, “to expand injection zones that will aid in grind and inject operations associated with the planned new drills.”
*Subject to economic conditions, continue planning “for developing prospects related to the Killian sands outside of the participating area.”
*Subject to economic conditions, drill the Killian 28 prospect from the main pad, “to further the concept of the Killian reservoir originally proved by the B1-07 Starfish well.” The company said remaining Killian wells would be drilled from a proposed east pad “due to ease of reach and additional space” and to allow for “a multiple well drill scenario. The two Badami sand prospects can be both reached from the main pad and the east pad,” the company said.
Savant also provided information on the proposed the Badami East Pad. It “will serve as a satellite site to gather production from the proposed new wells on the east pad to the main pad that houses the processing facilities.” There will be gathering manifolds, artificial gas lift operations, black start heater and well test equipment on the new pad, which will be connected to the main pad via an 8-inch line for three-phase flow and a 2-inch line to supply gas for lift operations. An integrated electrical and fiberoptic line will connect both pads, “and an option to add multiphase pumping operations.”
Savant also said that it has identified seven new targets for drilling in the Badami and Killian sands, three of which can be drilled from the Badami main pad with the remaining four to be drilled from the proposed east pad.
No wells were drilled in 2021, Savant said, listing unfavorable economic conditions in 2020, lost revenue as Badami was shut-in for six months in 2020 and expenses related to turnaround and restart operations.
The 2022 PODIn its 19th POD Savant said it “intends to further the planning development activities for the new Badami and Killian sand prospects. Due to the significant capital cost of the endeavor, it is highly dependent upon an extended period of stable oil prices and ability to raise capital at reasonable terms.”
Depending on economic factors, the company intends to drill two Badami sand wells from the main pad classified as proved undeveloped prospects.
For areas not included in the participating area, the company “will continue to refine and market the prospects related to the Killian sands outside of the participating area.” It intends to drill into the Killian 28 reservoir from the main pad during the ice road season, to “prove the extensive Killian play outside of the PA at Badami and aid securing capital for overall development.”
The company also plans geologic evaluation of newly secured 1,280 acres toward the south of the unit.
The company plans “logging work to evaluate potential commingling of reservoirs in B1-38,” currently producing from the Killian reservoir, with Alaska Oil and Gas Conservation Commission approval required for commingling.
It plans fluid movement logs on Class 1 injection well B1-01 to test efficacy of existing injection zones and mechanical integrity testing of the existing wellbore.
Planned facility work includes relocation of a membrane based newly installed wastewater treatment plan to a more suitable location, upgrading communication systems between the Badami control room and remote terminal units along the Badami Pipeline and converting fuel source from propane to natural gas for thermoelectric generators at remote terminal units along the pipeline.
Division approvalIn its approval of the 19th POD, the division listed proposed work for the 2022 POD as:
*Well logging in B1-38.
*Fluid movement logs in B1-01.
*Continuation of “well and facility maintenance, optimization, and explore options to enhance production as appropriate.”
- KRISTEN NELSON