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No Prudhoe satellite drilling in 2021
Hilcorp’s plan of development for western areas covers May 2021 through April 2022; two wells drilled, completed under 2020 POD Kristen Nelson Petroleum News
Both oil and natural gas production from the Prudhoe Bay western satellites - Aurora, Borealis, Midnight Sun, Orion and Polaris - increased in calendar year 2020 over 2019 volumes.
Hilcorp North Slope, which operates the Prudhoe Bay unit and satellites on behalf of itself and the other working interest owners, said Jan. 27 in a proposed 2021 plan of development submitted to the Alaska Department of Natural Resources’ Division of Oil and Gas that in 2019 the Prudhoe Bay unit western satellites produced some 18.7 billion cubic feet of natural gas and 6,951,000 barrels of oil.
In 2020, the company said, production from the satellites was 19.17 bcf of natural gas and 8,040,000 barrels of oil.
Both are year-over-year increases, 5.4% for natural gas and 15.7% for oil.
The western satellites produce no natural gas liquids. Production from Prudhoe, not including NGLs, was 76,3865,711 barrels in 2019 and rose to 78,550,002 barrels in 2020, an increase of 2.8% year-over-year. When NGLs are included, overall production from the entire field rose 3.1% from 2019 to 2020.
For 2020, the western satellites accounted for some 10% of liquids production at Prudhoe.
Figures for satellite production included in the 2021 POD application show Polaris, the most productive, produced 2,267,000 barrels in 2020, followed by Borealis at 2,034,000 barrels, Aurora at 1,945,000 barrels, Orion at 1,438,000 barrels and Midnight Sun at 356,000 barrels.
BP Exploration (Alaska), formerly the Prudhoe operator, was acquired by Hilcorp in a stock sale which closed June 30, and on July 1, the name of the BPXA entity was changed to Hilcorp North Slope. In addition to Hilcorp, working interest owners at Prudhoe are ConocoPhillips Alaska, ExxonMobil Alaska Production and Chevron U.S.A.
Satellite overview In an overview of the western satellites, Hilcorp said development of the Aurora reservoir began in July 2000 and production began in November of that year, with water injection in December 2001. Miscible gas for water-alternating-gas injection - tertiary recovery - began in December 2003, using Prudhoe Bay miscible gas. Aurora production is commingled with Prudhoe Bay initial participating area and Polaris PA production at S-Pad and processed at Gathering Center 2.
Borealis reservoir development began in July 2001 and production began in November of that year, with water injection in June 2002. Tertiary recovering using Prudhoe Bay miscible injectant for WAG began as a pilot project in June 2004. Borealis production is commingled with IPA at Z-Pad and Orion PA production the L and V pads and processed at GC-2.
Midnight Sun reservoir development began in 1997 and production began in 1998, with water injection in 2000 and MI in 2016. Production is processed at GC-1.
Orion development began in December 2001 with production in April 2002 and water injection in December 2003. Tertiary recovery, with Prudhoe Bay MI for WAG, began in October 2006. Production is processed at GC-2.
Polaris development began in November 1997 and production began in November 1999 and water injection in May 2003. There was brief usage of Prudhoe Bay MI for WAG in 2006 and that usage began again in November 2009 for tertiary recovery. Production is commingled with IPA and Aurora PA production at S-Pad and IPA production on W-Pad and processed at GC-2.
2020 work Hilcorp said that during the 2020 POD period, calendar year 2020, two wells were drilled and completed at the satellites: L-119Ai at Borealis and S-201Ai at Polaris.
“Drilling activity was halted in April due to the COVID-19 pandemic and is not expected to resume during the 2020 POD period,” Hilcorp said. In August Hilcorp requested, and the Division of Oil and Gas approved, an extension of the 2020 POD through April 30, 2021.
There were no workovers completed in the 2020 POD period, but Hilcorp said it plans to start a workover campaign at Prudhoe in the second quarter of 2021.
The company said it plans to use a temporary rig for workovers on S-118 and V-137 in the first quarter of 2021.
2019 work In its November 2019 approval of the 2020 POD, submitted by then-Prudhoe operator BP, the division noted work accomplished during the 2019 POD.
At Aurora, BP sidetracked a well, had a rig workover scheduled for the fourth quarter and completed 66 wellwork jobs, 20 of which were rate-adding.
At Borealis, perforations were added to a well, a rig workover was scheduled to recomplete a producer in the third quarter with another rig workover scheduled for the fourth quarter, along with a coil tubing sidetrack. BP completed 70 wellwork jobs, 21 of which were rate-adding.
At Midnight Sun, BP planned to convert a well to an Ivishak producer.
At Orion, BP completed 65 wellwork jobs, 20 of which were rate-adding.
At Polaris, BP amended the POD with plans to drill three wells between September 2019 and the first quarter 2020. The company completed 31 wellwork jobs, seven of which were rate-adding.
2021 POD In the proposed 2021 POD Hilcorp said: “Due to the challenging economic conditions related to the COVID-19 global pandemic, the PBU working interest owners did not approve a drilling program for 2021. The resumption of drilling activity in 2022 will depend on market conditions and approval from working interest owners.”
The company said it would continue evaluating drilling projects for the future.
While drilling at the western satellites is not planned, Hilcorp said it does plan as many as 10 workovers or recompletions.
Candidates to be evaluated include:
*Borealis participating area: two Z-pad recompletions from the Ivishak to the Kuparuk formation.
*Midnight Sun PA: one rig workover for profile modification.
*Orion PA: two rig workovers to repair mechanically failed wells and two rig workovers to add additional injection.
*Polaris PA: three workovers to add additional injection.
Under major facility projects none were completed in the 2020 POD period, but Hilcorp said in the 2021 POD period it “anticipates reinstating the GC-2 B slug catcher sand jetting system to improve solids and water handling capabilities” and plans early studies to define infrastructure opportunities in the western area gathering infrastructure.
Hilcorp said it plans to evaluate future drilling opportunities and potential undeveloped resources, and “evaluate new pad development options, polymer injection, L pad expansion, and partial pad separation.”
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