STATE OF ALASKA

OIL AND GAS CONSERVATION COMMISSION
3001 Porcupine Drive
Anchorage, Alaska 99501-3192


Re:The Application of BP Exploration (Alaska)      ) Conservation Order No. 349
   Inc. to expand the affected area of
   Conservation Order No. 173.                     ) Kuparuk River Field
                                                   ) Kuparuk River Oil Pool

                                                     December 16 1994
IT APPEARING THAT:

1. By letter dated September 14, 1994 BP Exploration (Alaska) Inc. (BPX) requested an expansion of the Kuparuk River oil pool rules area to include a portion of the pool northwest of the Milne Point unit delineated subsequent to the issuance of Conservation Order 173.

2. Notice of public hearing was published in the Anchorage Daily News on October 11, 1994.

3. The Commission received no protest or request for hearing regarding the petition.

FINDINGS:

1. The Kuparuk River oil pool (KROP) rules boundary is currently defined by the affected area of Conservation Order No. 173.

2. The oil accumulation within the Kuparuk River Formation in the Kuparuk River Field was initially thought to be principally a single entity, within a single trap composed of both structural and stratigraphic elements.

3. Subsequent to establishing the KROP rules boundary, the oil accumulation and trap configuration has been more completely delineated through a combination of exploratory and development activities.

4. Extensive faulting and stratigraghic discontinuities create numerous pressure barriers and trapping elements in the KROP.

5. The structure of the developed area of the KROP in the Milne Point Unit is similar to the northwest trending horst blocks found in the adjacent Kuparuk River Unit and may form a separate trap, down dip and northeast of the Kuparuk River Unit structural closure.

6. Several oil water contacts exist in the Milne Point Unit KROP.

7. KROP hydrocarbons trapped within the Milne Point Unit have not been shown to be in pressure communication with any portion of that resource currently under development in the Kuparuk River Unit.

8. 3-D seismic data and four exploratory wells (NW Milne #1, No Point #1, L-14 and L-15) in the currently undeveloped northwestern portion of the Milne Point Unit (NWMP) have proven the Milne Point Unit structure extends into this area.

9. The NW Milne #1, No Point #1, L-14 and L-15 wells encountered oil bearing Kuparuk River Formation stratigraphically equivalent to the Milne Point Unit KROP.

10.No oil water contact has been observed in the Kuparuk River Formation in the NWMP exploratory wells.

11.The reservoir characteristics of the Kuparuk River Formation in the NW Milne #1, No Point #1, L-14 and L-15 wells are similar to those in other portions of the Milne Point Unit and similar to those in the Kuparuk River Unit.

12.Milne Point Unit, Kuparuk River Formation oil properties range in API gravity from 21 degrees in the southeast to 26 degrees in the far northwest. Average NWMP oil properties are; 1) initial solution gas oil ratios of 300 standard cubic feet per stock tank barrel of oil, 2) a viscosity of 3 centipoise at 178 degrees Fahrenheit, 3) initial reservoir pressure of 3,500 pounds per square inch at a datum of 6,800 feet subsea, and 4) a bubble point pressure of 2,250 pounds per square inch.

13.The Alaska Department of Natural Resources approved the expansion of the Milne Point Unit to include the NWMP area on March 2, 1992.

14.BPX is operator of the Milne Point Unit.

15.BPX intends to initiate development activities in the NWMP, Kuparuk River Formation.

CONCLUSIONS:

1. Detailed analysis of subsurface data obtained through development and exploratory activities in the Kuparuk River and Milne Point Units indicate the KROP may be composed multiple separate oil accumulations.

2. The KROP has been shown to extend into the NWMP. The northern extent of the pool has not been determined.

3. The physical attributes of the KROP in the NWMP are very similar to the previously defined part of the pool.

4. Development of the KROP in the NWMP can be conducted under existing KROP rules without causing waste or jeopardizing correlative rights.

5. Expansion of the KROP area into the NWMPU is warranted.

NOW, THEREFORE IT IS ORDERED THAT the Kuparuk River oil pool rules area described in Conservation Order No. 173 is repealed and hereinafter pertains to the following described area:

 

T9N, R6E, U.M.

SECS. 1,2,11,12,13, and 14.

 

T9N, R7E, U.M.

SECS. 1,2,3,4,5,6,7,8,9,10,11,12,13,

14,15,16,17 and 18.

 

T9N, R8E U.M.

SECS. 1,2,3,4,5,6,7,8,9,10,11,12,13,

14,15,16,17, and 18.

 

T9N, R9E, U.M.

SECS. 1,2,3,4,5,6,7,8,9,10,11,12,15,16,17

and 18.

 

T9N, R10E U.M.

SECS. 1,2,3,4,5,6,7,8,9,10,11 and 12.

 

T10N, R6E, U.M.

SECS. 1,2,3,4,9,10,11,12,13,14,15,16,21,

22,23,24,25,26,35 and 36.

 

T10N, R7E, U.M.

ALL.

 

T10N, R8E, U.M.

ALL.

 

T11N, R10E, U.M.

ALL

 

T11N, R11E U.M.

SECS. 3,4,5,6,7,8,9,10,11,14,15,16,17,18,

19,20,21,22,23,24,25,26,27,28,29,30,31,32,

33,34,35 and 36.

 

T12N, R7E, U.M.

SECS. 25,26,35 and 36.

 

T12N, R8E, U.M.

ALL

 

T12N R9E U.M.

ALL

 

T12N, R10E, U.M.

ALL

 

T12N, R11E, U.M.

SECS. 3,4,5,6,7,8,18,19,20,29,30,31,32 and

33.

 

T13N, R8E, U.M.

SECS. 13,14,23,24,25,26,27,28,33,34,35 and

36.

 

T10N, R9E, U.M.

ALL.

 

T10N, R10E, U.M.

ALL

 

T10N, R11E, U.M.

SECS. 5,6,7,8,17,18,19 and 20.

 

T11N, R6E, U.M.

SECS. 25,26,35 and 36.

 

T11N, R7E, U.M.

SECS. 1,2,3,4,9,10,11,12,13,14,15,16,

17,18,19,20,21,22,23,24,25,26,27,28,29,

30,31,32,33,34,35 and 36.

 

T11N, R8E, U.M.

ALL

 

T11N, R9E, U.M.

ALL

T13N, R9E, U.M.

ALL

 

T13N, R10E, U.M.

ALL

 

T13N, R11E, U.M.

SECS. 7,8,16,17,18,19,20,21,28,29,30,31,32

and 33.

 

T14N R9E U.M.

SECS. 1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,

16,17,18,20,21,22,23,24,25,26,27,28,29,32,

33,34,35 and 36.

 

T14N, R10E U.M.

SECS. 15,16,17,18,19,20,21,22,27,28,29,30,

31,32,33,34 and 35

 

T15N, R9E U.M.

State lands within SECS. 25,26,27,31,

32,33,34,35, and 36.

DONE at Anchorage, Alaska and dated December 16, 1994.

David W. Johnston, Commissioner
Alaska Oil and Gas Conservation Commission

Russell A. Douglass, Commissioner
Alaska Oil and Gas Conservation Commission

Tuckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order Index