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Providing coverage of Alaska and northern Canada's oil and gas industry
July 2024

Vol. 29, No.29 Week of July 21, 2024

ConocoPhillips Coyote oil pool, injection applications to AOGCC

Kristen Nelson

Petroleum News

ConocoPhillips Alaska has applied to the Alaska Oil and Gas Conservation Commission for pool rules and an area injection order for the Coyote oil pool, a Nanushuk formation currently producing from the 3S pad in the Kuparuk River unit. AOGCC records show production from Coyote undefined oil beginning in early 2022, with cumulative production through May of this year of 760,158 barrels and a single well, KRU 3S-704, currently in production, paired with an injection well, KRU 3S-701A.

The commission has scheduled a public hearing on the applications for Aug. 20 at 10 a.m. in its Anchorage offices; audio call in is available at 907-202-7104 conference ID 538 807 168#.

Coyote accumulation

ConocoPhillips is proposing that the Coyote oil pool be defined based on the Palm 1 well and include the interval between measured depths of 4,270 and 5,115 feet, with the base of the Coyote defined as the top of the Torok formation at 5,115 feet MD and the top of the Coyote as the top of the Nanushuk formation at 4,270 feet MD. ConocoPhillips said Coyote is part of the Brookian Nanushuk formation.

The company said the formation has had numerous penetrations going back to the mid-1960s, with most from the early 1990s to 2010s. "The Coyote interval was historically overlooked due to its subtle petrophysical response (driven by thin-bed suppression)," ConocoPhillips said, with the interval first flow tested by Oil Search (Alaska) in the Mitquq 1 ST1 well, an exploration well which AOGCC records show was drilled in 2020.

ConocoPhillips said it first tested a correlative interval within the Kuparuk River unit in 2021 with a vertical sidetrack, KRU 3S-24B, with positive results from that well leading to the first horizontal producer/injector pair (3S-701A/3S-704) in 2022-23.

The company said it plans to develop Coyote from two existing drilling sites, 3S and 3T.

Original oil in place is estimated at 508 million to 646 million barrels for the area currently planned for development from the 3S and 3T pads, increasing to 636 million to 810 million barrels for the area inside the proposed Coyote pool.

Phased development

ConocoPhillips said Coyote development will be phased, starting with the existing drill sites 3S and 3T, currently connected to KRU Central Processing Facility 3, with an estimated 20 horizontal multi-staged fracture stimulated producers and 20 horizontal multi-staged fracture stimulated injectors.

Primary recovery is estimated to recover some 5% of the original oil in place, with waterflood recovering an additional 15-25% of OOIP, for a total of 20-30%. ConocoPhillips said gas injection is being evaluated to estimate what it would add to ultimate recovery.

"Resource recovery for floods is heavily dependent on injection throughput, waterflood recovery efficiency, and gas injection recovery efficiency," the company said.

Well spacing of 1,300 feet is planned. "The largest remaining uncertainty for the Coyote development is the question of interconnectivity of the reservoir at the proposed development scale of 1,300' well spacing. The highly interbedded nature of the proposed Coyote Oil Pool could result in poor inter-well communication at that distance," ConocoPhillips said.

The company said gas lift is planned, but it may employ different techniques "to optimize reservoir pressure drawdown, provide lift for long reach horizontal wells, and enhance production rates at increased water cuts, which are anticipated following waterflood response."

While initial development will use drill sites 3S and 3T, upgrades to current infrastructure will be required to accommodate full production, with proposed improvements including "a new produced oil pipeline and water injection pipeline between 3S drill site to CPF2," ConocoPhillips said, with final infrastructure improvements being evaluated.

The company noted that a separate participating area is planned for Coyote.

Area injection order

In its application for an area injection order for Coyote, ConocoPhillips said AOGCC previously approved a Coyote enhanced recovery injection order for a pilot project in January 2023, allowing injection operations at 3S-701A. That pilot was for 3 years.

The in-field pipeline can transport only produced water or seawater, and the company said water service for each drillsite is based on the production potential of the entire unit, with 3S currently on produced water service.

The pilot, however, also confirmed compatibility with seawater injection.

Primary injection fluids include produced water and gas from within KRU; Beaufort seawater from the KRU seawater treatment plant; and gas and natural gas liquids imported from Prudhoe. Other fluids may be injected for enhanced recovery, including fluids used during hydraulic stimulation; tracer survey fluids; fluids to improve near wellbore injectivity; fluids used to seal wellbore intervals; fluids associated with freeze protection; and standard oilfield chemicals.

The area injection order will approve injections for pressure maintenance and enhanced oil recovery.






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