Producers 2019: AIX Energy focused on deliverability
Company says depending on compression evaluation might tie 1-4 well to production system Kay Cashman Petroleum News
In its fifth plan of development/operations for the Kenai Loop gas field AIX Energy LLC said it will focus on “aligning gas sales with field deliverability” for the period May 7, 2019, through May 6, 2020. The plan was submitted both to the Alaska Department of Natural Resources’ Division of Oil and gas and to the leaseholder, Cook Inlet Region Inc.
AIX took over the Kenai Loop field in late 2014 after its developer, Buccaneer Energy, went bankrupt. The four wells at the field were all drilled by Buccaneer between 2011 and 2013. Two wells, Kenai Loop 1-1 and Kenai Loop 1-3, are active producers, AIX said; Kenai Loop 1-2 is temporarily suspended and may be used as a disposal well in the future; and Kenai Loop 1-4 is a shut-in producer, not tied into the field’s production system.
The onshore Cook Inlet area field has a single producing lease on CIRI acreage. (In 2017 the company decommissioned Pad 2 and ended a surface lease with the Alaska Mental Health Trust.)
The Kenai Loop gas field facilities include “industry standard compression, dehydration, heating, testing and metering equipment,” AIX said.
The company said cumulative production from the field, through the end of April 2019, was 20.8 billion cubic feet of gas, 7,933 barrels of water and 2,508 barrels of condensate.
Production peaked at some 11 million cubic feet per day in 2016 and averaged less than 6 million cubic feet per day this year, according to figures provided by the company.
AIX said in its new plan, filed in May 2019, that it purchased and installed a natural gas fired compressor in the winter of 2018, under the fourth POD.
The company said startup of the compressor occurred in February with the Kenai Loop 1-3 well on compression. The Kenai Loop 1-1 well will be put on compression when required.
Contract with Enstar As reported by Petroleum News in the fall of 2017, AIX has a gas supply agreement with Enstar Natural Gas Co. which calls for a firm supply of 1.37 bcf of gas between July 1, 2018, and March 31, 2019; 1.464 bcf between April 1, 2019, and March 31, 2020; and a range of 1.095 bcf to 1.825 bcf between April 1, 2020, and March 31, 2021. The daily average was 5 million cubic feet of gas in the first year of the contract, 4 million cubic feet per day in the second year and between 3 million and 5 million cubic feet per day in the third year.
Work planned AIX said that in its fourth POD it obtained static reservoir pressure on the two producing wells, Kenai Loop 1-1 and Kenai Loop 1-3, and “updated the material balance estimates of gas in place and reserves.”
A year-end 2018 reserves report was provided to Enstar under the company’s gas sales agreement, AIX said.
For the fifth POD the company said it plans well work and compression, and said that as part of its compression evaluation it will look at the cost and benefit of tying the Kenai Loop 1-4 well to the production system to provide increased deliverability and redundancy to meet its firm gas sales obligations and possibly increase ultimate recovery. It will also evaluate recompleting wells to provide additional deliverability.
The Kenai Loop 1-4 well, drilled in October 2013, tested at 2.5 million cubic feet per day but later proved to be producing from the same reservoir as the Kenai Loop 1-1 well, so the 1-4 well has been used to monitor reservoir pressure.
AIX said that to date it has not identified any drilling opportunities within the producing lease.
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