March 6, 2000                                                                     INFORMATION LETTER #OGC 00-03

Reservoir pressure measurements are required on each producing oil or gas pool in British Columbia in accordance with Section 95 of the Drilling and Production Regulation (the Regulation). The Oil and Gas Commission (Commission) requires adequate areal pressure survey coverage annually, although in some instances less frequent surveys have been approved under Section 95.2 (see Table 1).

Each producing pool should have annual reservoir pressure tests equal in number to:

i) 25% of the producing wells in oil pools;
ii) 25% of the total number of wells or 50% of the producing wells, whichever is less, in gas pools.

More tests than the above outlined minimum requirement may be ordered by the Commission. All new wells/productive zones are required to have an initial pressure test prior to any production.

The Commission receives copies of all tests and conducts audits to ensure adequate testing is being performed. Where an operator is aware of a lack of test data on a pool, the Engineering and Geology Branch (the Branch) of the Commission should be notified and will contact the responsible company to enforce the Regulation.

Other-than-annual testing of a pool may be granted where an adequate pressure history exists, wells have low productivity, and/or there are few remaining reserves. Applications for relief from the annual testing requirement should include:

• a reference location map
• a tabular pressure history for each well in the pool
• a graphical pressure history for the pool
• a production rate history by well/pool
• the reserves and cumulative production for the pool
• letters of consent from other pool operators.

A "Coordinating Operator" has been designated by the Branch for many of the pools having multiple operators (see Table 1). The Coordinator is responsible for ensuring that a comprehensive survey is carried out and the minimum testing requirements are met. A survey schedule is compiled by the Coordinator, in collaboration with all other operators in the pool. The Coordinator is not responsible for surveying wells or submitting results for other operators.

For those pools where a Coordinating Operator has not been designated, the individual operator is responsible for meeting the minimum testing requirements.

The optimum method of determining static bottom-hole pressure is with a bottom-hole recorder. Where the reservoir pressure is calculated from wellhead pressure and fluid level measurements, or pressure build-up or fall-off data, comprehensive details of the data and calculations must be included in the survey report (submitted within 60 days from the date of completion of testing in accordance with section 95.3). All reservoir pressure tests are required to be submitted to the Victoria office, accompanied by the Reservoir Pressure Survey Test (PST) Report form.

Every gas well is required to be flow tested and the absolute open-flow (AOF) potential determined before six months have elapsed once the well has been placed on initial production and immediately after each work-over performed on the well (section 84). If gas flaring is planned, prior approval is required from the Commission office in Fort St. John.

Once a gas well deliverability test has been completed, a detailed report accompanied by a Well Deliverability Test Report form must be submitted to the Commission within 60 days of the final test date. Complete reports should include any pressure recordings, flow rates and produced volumes, fluid sample analysis and the analysis of data, specifically pressure transient analysis and both wellhead and sandface AOF calculations. Reports must also be filed for any clean-up flows.

Copies of the required reporting forms along with instructions on their completion may be obtained from the Commission web site at; http://www.ogc.gov.bc.ca/forms_&_checklists/FormsChecklists.htm#Reservoir Engineering.

Your cooperation in this matter is appreciated and will ensure the maintenance of a valuable database. Test data, analysis, and any questions should be directed to:

Ron G. Stefik
Sr. Reservoir Engineering Technician
Engineering and Geology Branch
Oil and Gas Commission
PO Box 9329 Stn Prov Gov’t Phone: (250) 952-0310
VICTORIA BC V8W 9N3 FAX: (250) 952-0291

(Signed By)

Rob McManus
Commissioner

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