Alaska Department of Administration

Alaska Oil and Gas Conservation Commission

AOGCC Pool Statistics

Milne Point, Kuparuk River Oil Pool


Operator
HILCORP ALASKA LLC
Discovery Well
STANDARD OIL CO OF CALIFORNIA
KAVEARAK PT 32-25
Permit No.169-051
API No. 50-029-20028-00-00
Sec. 25, T13, R10E, UM
Depth: 9799' MD / 9799' TVD
October 24, 1969
Map Image Unavailable

Summary

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.1In 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.

Production

Geology

At Milne Point, the Kuparuk reservoir consists of a series of sandstones deposited on a shallow marine shelf during the Early Cretaceous (Neocomian). The Kuparuk River Oil Pool is defined as the accumulation of oil that is common to and correlates with the accumulation found in the ARCO West Sak River State No. 1 well between the depths of 6,474 and 6,880 feet.3 The reservoir is divided into four informal units that are named, in ascending order, "A", "B", "C", and "D.” The A unit consists of very fine-grained sandstone, and the B unit comprises interlaminated siltstone and sandstone. The C unit is composed of mainly of fine to medium-grained sandstone, with the overlying D unit consists of shale. The "A" and "C" units are the major pay intervals within the Milne Point Unit.4 The pool is situated mainly in the northeastern half of the Milne Point Unit, within crest and northeastern flank of a northwest-trending anticline that is broken near its crest by a series of northwest-trending, normal faults. The pool is further compartmentalized by numerous northeast-trending normal faults. According to operator supplied reservoir statistics, porosity averages 23 percent, and permeability ranges from 20 to 40 md.5 Oil gravity ranges from 21 to 26 degrees API,6 and averages 22 degrees API.7


Last Revised
9 Nov 2017 sfdavies

1Alaska Oil and Gas Conservation Commission, 2017, Production Database
2Lidji, E., The Producers 2014: Deal with BP Brings Hilcorp to the North Slope, in Petroleum News, V. 19, No. 46, November 16, 2014
3Alaska Oil and Gas Conservation Commission, 2017, Production Database
4The Kuparuk River Oil Pool in the Kuparuk River Field is defined as common to and correlates with the accumulation found in the Atlantic Richfield Company West Sak River State No. 1 well between the depths of 6,474 and 6,880 feet.
5Alaska Oil and Gas Conservation Commission, 2002, Conservation Order No. 432B, Kuparuk River Field, Kuparuk River Unit, Milne Point Unit, Kuparuk River Oil Pool
6BP, 2003, Reservoir Properties supplied by Operator for Alaska Oil and Gas Conservation Commission 2003 Annual Report
7Alaska Oil and Gas Conservation Commission, 1994, Conservation Order No. 349, Kuparuk River Field, Kuparuk River Unit, Milne Point Unit, Kuparuk River Oil Pool
8BP, 2003, cited above