The Kuparuk River Oil Pool at Milne Point was discovered in 1969 by the Kavearak Pt No. 32-25 well. This pool was delineated and then developed by Conoco, Inc. beginning in 1980. Regular production began during November 1985, but low oil prices caused Conoco to curtail production and place the pool in a two-year “warm shut-down” that began in January 1987. Production resumed in April 1989, peaked twice at an average rate of about 20,000 barrels of oil per day (“BOPD”) in January 1990 and again in April of 1991, then declined to a rate of about 17,000 BOPD by year-end 1993.
In early 1994, BP became operator of the Milne Point Unit (“MPU”) and began an aggressive development program. By June 1996, production jumped to 43,000 bopd with the addition of the F-Pad development at No Point along the northern coastline and the K-Pad development in the southeast portion of the unit. Production peaked at 52,900 bopd in July 1998, and then began to decline. During the last quarter of 2005, the pool averaged 26,595 BOPD and 64% water cut from 84 producers. By the first five months of 2011, average pool production declined to 14,600 BOPD, and average water cut increased to 80% from between 68 and 74 producers.1
In late 2014, Hilcorp Alaska LLC (Hilcorp) acquired 50 percent working interest in the Milne Point Unit from BP, and Hilcorp subsequently became operator for the unit. 2
Under Hilcorp, the average production rate increased during the first six months of 2015 to 13,089 BOPD, and then began to decline again. Over the first half of 2017, production averaged 10,289 BOPD and 56,088 barrels of water per day, an 81.7% water cut.3
urrently, more than 230 wells and well branches penetrate the pool, which is developed on 160-acre spacing.