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Hilcorp files new plan for Milne Point, Ugnu heavy crude in play
Kay Cashman Petroleum News
Hilcorp Alaska, operator of the North Slope Milne Point unit, filed a 38th plan of development with the state Division of Oil and Gas on Oct. 15, which will be effective Jan. 13 through Jan. 12, 2021.
The company, which took over operatorship of the mature oil field in November 2017, has drilled 19 new wells at Milne so far this year, including one S pad Ugnu heavy oil 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 (producer and injector).
Unlike the Schrader Bluff viscous oil already produced from the unit, Ugnu crude is much thicker, colder and more difficult to extract.
Hilcorp also said it would be doing S pad “facility upgrades and infrastructure” to support 2020 Ugnu crude development yet this year - specifically by the end of the current and 37th POD, which is Jan. 12.
The Milne Point field has 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.
Hilcorp said last year that not only would the field soon again be producing from the Ugnu pool, but also from Sag River.
The state-designated Milne Point unit involves the Kuparuk participating area, or PA, the Schrader Bluff PA and the Sag River PA. Additionally, the unit includes tract operations C-15A, S-90, C-23, K-33, MPS-37, MPS-39, MPS-41, MPS-43, B-30, C-46 and S-203.
Oil output rises In the 38th POD filed Oct. 15 were a list of major facilities projects completed in the unit under the 37th POD, including Moose pad facility and pipeline startup, permitting and planning activities for the new Raven pad (see article 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 procuring for the F pad polymer injection facility.
During the eight months ending Aug. 31, Milne’s average daily production rate was 23,322 barrels of oil per day, Hilcorp said. During the same period last year, the nearly 40-year old field’s daily average was 20,590 barrels.
Hilcorp said the Milne Point unit has not historically, and is not currently, equipped to sell natural gas liquids; rather, all oil produced is conventional black oil.
Next year’s plans During the 38th POD from Jan. 13 through Jan. 12, 2021, Hilcorp anticipates completing the following drilling, workover and facility projects.
* Drill up to 28 new wells.
* Complete up to 20 well workovers with the ASRI workover rig.
* Undertake eight key facility projects.
*Undertake another four or more projects.
Potential drilling candidates include 16 Moose pad Schrader Bluff wells (half injectors, half producers), two Moose pad Kuparuk wells (producers M-57 and M-58), three S pad Ugnu wells (one producer, two injectors) and seven S pad Schrader Bluff wells (four producers, three injectors).
The key facility projects Hilcorp expects to undertake include Moose pad upgrades to the test header and production header, J and L pad polymer silo upgrades, F pad polymer facility installation and startup, 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 might include, “but are not limited to,” Raven pad design and civil work, S pad facility future expansion, S pad polymer engineering and purchasing and diesel to slop oil tank conversion.
Long-range activities Hilcorp said it is continuing to evaluate future drilling opportunities and plans to continue to evaluate potential undeveloped resources in the field.
During the 38th POD period, the big independent intends to advance design and civil work for construction of the new Raven drilling pad.
In an April application to the U.S. Army Corps of Engineers to expand gravel mining at Milne, Hilcorp told the Corps it needed “enough gravel for 2 to 3 pads initially.”
The 38th POD was filed by Jim Shine, a senior landman at Hilcorp.
- KAY CASHMAN
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