Milne Point Schrader Bluff: Finding the Keys to Two Billion Barrels

Abstract

C.R. Bidinger*; J. F. Dillon, BP Exploration (Alaska) Inc. Abstract Milne Point, North Slope Alaska, contains in excess of 2 billion barrels original oil in place (OOIP) in the shallow, Late Cretaceous, Schrader Bluff Formation. This resource is part of a larger accumulation in excess of 26 billion barrels OOIP overlying many of the deeper produCing fields. A small waterflood pilot presently produces 3300 barrels of oil per day (BOPD) of 19 API oil from 2650 acres in Milne Point. Initial average well productivity's of 350 BOPD, low by North Slope standards, coupled with current cost, performance, and fiscal conditions, render the resource uneconomic. A multi-pronged approach dealing with well productivity, drilling and facility costs, and development incentives is underway to save this resource from abandonment. Technological and contractual innovations are considered keys to success. Which keys fit the lock will determine the development of billions of barrels of recoverable oil. Introduction Milne Point is located approximately twelve miles west of Prudhoe Bay on the North Slope of Alaska (Figure No. 1). BPXA acquired Milne Point from the majority owners, CONOCO and Chevron, and began operating the field on 1 January, 1994. Occidental Petroleum continues to maintain a minority working interest in the field. The field currently produces 28,000 BOPD primarily from the Kuparuk Formation, one of the main North Slope reservoirs. The Schrader Bluff accumulation overlies this deeper horizon BPXA has initiated a significant challenge to commercialize this Schrader Bluff reservoir following earlier attempts by CONOCO at Milne and by ARCO to the south and west of Milne, in the reservoir interval known informally as West Sak. THE RESOURCE The shallow Schrader Bluff/West Sak/Ugnu reservoirs overlie the main reservoirs at the Kuparuk River, Milne Point, and Prudhoe Bay fields. With 26 billion barrels of oil in place, these shallow pools are larger than the North Slope's Prudhoe Bay. P. 419