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

Vol. 29, No.41 Week of October 13, 2024

Fewer wells planned in 2025 for Prudhoe Western Satellites area

Kristen Nelson

Petroleum News

In its proposed 2025 plan of development for the Western Satellites area of Prudhoe Bay, operator Hilcorp North Slope said it anticipates completing seven wells in the area in 2025 (the POD covers the 2025 calendar year), with eight more possible "depending on rig availability."

This is a substantial stepdown from the 2024 Western Satellites POD, which proposed up to 19 wells, with drilling at four of the five participating areas -- Aurora, Borealis, Orion and Polaris. Only Midnight Sun, the least productive of the participating areas, had no drilling proposed.

In the 2025 proposed POD, dated Oct. 2 and addressed to Derek Nottingham, director of the Alaska Division of Oil and Gas in the Department of Natural Resources, Hilcorp North Slope said it had completed one grassroots producer in the 2024 POD period, with four wells pending execution. The company said drilling was reduced in the Western Satellite area during the 2024 POD "due to alternative opportunities identified in the Oil Rim and Gas Cap Participation Areas."

The completed well is in the Orion PA; wells planned for execution by the end of the year include two sidetracks in the Aurora PA, both producers, and two grassroots wells, also producers, in the Polaris PAs.

The company said no workovers or recompletions were planned during 2024, but four took place in the Aurora PA and three in the Borealis PA.

On the facilities side, two major projects were planned during 2024, with construction begun on phase 1 of the Eileen West End Twin Pipeline while the Gathering Center 2 C Bank Slugcatchers retrofit was deferred.

The company said it anticipated completing a project not in the 2024 POD -- Gathering Center 2 PWI injection pump electrification.

Proposed 2025 POD work

Hilcorp NS said proposed 2025 POD drilling includes some seven wells, three at Aurora (injectors) and up to four injectors at Polaris.

At Orion, where drilling is in addition to the seven wells and will depend "on rig availability," the proposal is for as many as eight wells, split between producers and injectors, but the company said that split "may vary."

Workover operations -- which Hilcorp said are subject to change -- include a recompletion of the Z-15A at Borealis from Ivishak to Kuparuk (WAG injection) and an evaluation of uphole recompletion for Canning formation appraisal at Orion, with well number and location to be determined.

Major facility projects include construction of the EWE LDF Twin Pipeline, begun in 2024 with completion anticipated in 2025; GC2 inter-state vessel installation; GC2 LPS compressor bundle upgrade and gas conditioning upgrades; and GC2 A Bank vessel internal upgrades.

Continuing evaluation includes future drilling opportunities and potential undeveloped resources, including new pad options.

Hilcorp NS said it "is currently evaluating pad options, facility layouts, and subsurface development schemes for west-end development, including permitting for construction of Omega Pad."

Additional pipelines are being evaluated "to reduce header pressure and increase gas lift pressure at L-, V-, W-, and Z-Pads."

Enhanced oil recovery opportunities are being evaluated for Schrader Bluff, "including polymer flood and foam WAG flood."

The company said it is also "evaluating a project to improve injected water quality for increased injectivity and recovery of oil."

The participating areas

Hilcorp NS provided an overview of the five participating areas included in the POD, along with production data for the 2023 calendar year.

Orion, the most productive of the PAs, averaged 18,927 barrels per day of oil, 49.5% of the Western Satellites 2023 average of 38,227 bpd. Reservoir development at Orion began in December 2001 and production began in April 2002, followed by water injection in December 2003. Prudhoe Bay miscible injectant for water-alternating-gas tertiary recovery began in October 2006. Orion production is processed at Gathering Center 2.

Polaris averaged 7,132 bpd, 18.66% of the Western Satellites average. Reservoir development at Polaris began in November 1997 and production started in November 1999, with the first water injection in May 2003. Prudhoe MI for WAG for tertiary recovery was used shortly in 2006 and began regularly in November 2009. Polaris production is commingled with production from the Initial Participating Areas and Aurora at S Pad, and with IPA production on W Pad, and processed at GC2.

Borealis averaged 7,002 bpd, 18.32% of the Western Satellites average. Borealis reservoir development began in July 2001 with production startup in November of that year, and water injection in December 2001. Prudhoe miscible gas for WAG has been used for tertiary recovery. Production is commingled with IPA and Polaris production at S Pad and processed at GC2.

Aurora averaged 4,249 bpd, 11.12% of the total average. Reservoir development at Aurora began in July 2000 and production started in November of that year, with water injection in December 2001. Prudhoe miscible gas began to be used in December 2003 for WAG for tertiary recovery. Aurora production is commingled with IPA and Polaris production at S Pd and processed at GC2.

Midnight Sun averaged 917 bpd in 2003, 2.4% of the total average. Reservoir production began in 1997 with production startup at Midnight Sun in October 1998, the earliest for any of the Western Satellite PAs. Water injection began in October 2000 and MI in 2016. Midnight Sun production is processed at GC1.

--KRISTEN NELSON






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