URBAN, Dennis, VENDL, Larry, NING, Samson Xiuxu, and MATHEWS, William, BP Alaska Exploration, 900 E. Benson Blvd, Anchorage, AK 99507, samson.ning@bp.com

The Schrader Bluff Reservoir in Milne Point Unit contains 2 billion barrels of oil in place. Recent early injection breakthrough events may reduce the expected recoveries in the S-pad waterflood development area. These events were initiated by injecting at pressures that exceeded the fracture gradient in order to match the voidage rate of the high-PI multilateral producers. Injection pressure limits have been imposed to prevent future breakthroughs, but have significantly restricted the ability to replace the production voidage and optimize production potential. An innovative solution was developed to provide clean hot water by drilling a well to the deep aquifer which directly underlies S pad. Increasing the temperature of the injection water is expected to increase injectivity by 50%, reduce fracture propagation and result in recovery of reserves. The project is consistent with BP's commitment to the environment. The hot source water will require minimal surface equipment and no additional surface heaters. The project is an innovative solution to the problem of adding clean hot fluids for injection management at a relatively low cost, without consuming fuel or increasing air emissions. This project is vital to the performance expectations of viscous oil developments in Alaska as a bridge to Alaska gas production. A source water well was drilled and completed successfully into the Ivishak formation in November 2005. Startup is planned for June 2006