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E E 5 ZO m aNi I W i .. re O co Z U c H Cl) I V 0 C 1 j a) O H C Z G l0 O N o 0 to N Q O CO Q O 0 r C C U 00 1- 2 •5 U 1 t J 'itO a a) t6 U 0 O a O j a. O. N E •_a O 0 LL E 2 O E m E E d a) Z U 0 0 0 0 M 0 0 Release of Confidential Data Coversheet Well Name: 511cvtAA:( 1 PTD: 21 2- OO E-Set: 2l Li coLl , 215H2. , 22050 , 2q 23 3 ✓ Physical data labeled with PTD, E-Set# Conf. entry: 5 / ° / 1`4 / Import CD data to RBDMS via GeoLogs tab ✓/ Confidential (incomplete)entry in Well Data List notes C// Import to DigLogs via E-Set tab Nf Scan labeled data Cay Apply OCR text recognition EV Save to Well Log Header Scans V New"complete" entry in Well Data List notes Logged by: MQ,Vtat,;. G rel Fully logged: S / 6, /2o1'-1 Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Wednesday, May 21, 2014 9:10 AM To: 'Koh, Shannon' Cc: Schwartz, Guy L(DOA) Subject: RE: Sikumi 1, PTD 212-008, Sundry 312-118, P&A photos Shannon, I checked with Guy Schwartz regarding this matter. He spoke with the inspector and has given me approval to complete the compliance review for this well. I printed your email and the email from Walter for the well history file. In the future, instructions written on sundries should be followed, even if an AOGCC inspector is present during part of the P&A operations. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission meredith.guhl@alaska.gov Direct: (907)793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. From: Koh, Shannon [mailto:Shannon.Koh@caelusenergy.com] Sent: Wednesday, May 14, 2014 8:46 AM To: Guhl, Meredith D (DOA) Subject: RE: Sikumi 1, PTD 212-008, Sundry 312-118, P&A photos Good morning Meredith, I have attached the response that I received from the driller engineer for Sikumi. Please let me know if this is sufficient. Thank you, Shannon Koh I Sr.Site Records Coordinator Caelus Energy Alaska 1700 G Street Suite 600,Anchorage,Alaska 99501 Direct 907 343 2128 I Shannon.Koh@caelusenergy.com(new e-mail address) From: Guhl, Meredith D (DOA) [mailto:meredith.guhl@alaska.gov] Sent: Tuesday, May 13, 2014 10:23 AM 1 To: Koh, Shannon Subject: FW: Sikumi 1, PTD 212-008, Sundry 312-118, P&A photos Shannon, Can you help me with this or direct me to who I should speak to? I haven't heard from Dustin Bruce about this email. Thank you, Meredith From: Guhl, Meredith D (DOA) Sent: Tuesday, May 06, 2014 2:35 PM To: 'dustin.bruce@pxd.com' Cc: Schwartz, Guy L(DOA); Bettis, Patricia K(DOA); Davies, Stephen F(DOA) Subject: Sikumi 1, PTD 212-008, Sundry 312-118, P&A photos Dear Mr. Bruce: I am completing the final compliance check for Sikumi 1, PTD 212-008,API 50-703-20654-00-00,completed on 4/6/2012 and due for release to the public on 5/6/2014. During my review of the well history folder I noticed that no photos were provided to document the cut-off casing sections and site clearance, as written on Sundry 312-118. Please provide the required photos via email and I will include them in the well history folder. If you have any questions, please contact me. Sincerely, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 2 Guhl, Meredith D (DOA) From: Koh, Shannon [Shannon.Koh@caelusenergy.com] Sent: Wednesday, May 14, 2014 8:46 AM To: Guhl, Meredith D (DOA) Subject: RE: Sikumi 1, PTD 212-008, Sundry 312-118, P&A photos Attachments: Sikumi P&A Good morning Meredith, I have attached the response that I received from the driller engineer for Sikumi. Please let me know if this is sufficient. Thank you, Shannon Koh I Sr.Site Records Coordinator Caelus Energy Alaska 1700 G Street Suite 600,Anchorage,Alaska 99501 Direct 907 343 2128 I Shannon.Koh(ftaelusenergv.com(new e-mail address) From: Guhl, Meredith D (DOA) [mailto:meredith.guhl@alaska.gov] Sent: Tuesday, May 13, 2014 10:23 AM To: Koh, Shannon Subject: FW: Sikumi 1, PTD 212-008, Sundry 312-118, P&A photos Shannon, Can you help me with this or direct me to who I should speak to? I haven't heard from Dustin Bruce about this email. Thank you, Meredith From: Guhl, Meredith D (DOA) Sent: Tuesday, May 06, 2014 2:35 PM To: 'dustin.bruce@pxd.com' Cc: Schwartz, Guy L(DOA); Bettis, Patricia K (DOA); Davies, Stephen F (DOA) Subject: Sikumi 1, PTD 212-008, Sundry 312-118, P&A photos Dear Mr. Bruce: I am completing the final compliance check for Sikumi 1, PTD 212-008,API 50-703-20654-00-00, completed on 4/6/2012 and due for release to the public on 5/6/2014. During my review of the well history folder I noticed that no photos were provided to document the cut-off casing sections and site clearance,as written on Sundry 312-118. Please provide the required photos via email and I will include them in the well history folder. If you have any questions, please contact me. Sincerely, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission meredith.guhl(alalaska.gov Direct: (907)793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 2 Guhl, Meredith D (DOA) From: Quay, Walter[Walter.Quay@caelusenergy.com] Sent: Wednesday, May 14, 2014 7:52 AM To: Koh, Shannon Cc: Johnson, Vern; Franklin, Charlene Subject: Sikumi P&A Shannon, On most of the exploration wells,that are on land,for the P&A,we take pictures of the remaining casing cut/stub,when there is a stub that we cut and put a plate on top.This is usually at a level that a man can get to without issue with a confined space entry issue, or 3 to 5' below ground level. The welder would end the operation with welding a plate on top of the cut stub and we take pictures for the record. However,Sikumi was"offshore" in " 1'of water and the abandonment was completed ^'14' below mudline with a mechanical cutter that was deployed with the drilling rig,then the stub was pulled. There would be fluid in the hole from the previous operations of cement plug setting,etc.. I don't believe we took any effort to suck out the fluid. We could have attempted to remove the fluid to the top of the cut stub, but would not get much more than a picture of the cellar with a dark hole. This was still covered by the rig. The rig was de-mobed and the photo of the cellar with ice a couple of feet below the top of the cellar is the best photo of the well that I know of. The sequence following this, had melting of some of the liquid in the cellar, super sucking it out,then removing the cellar and backfilling with ice/snow as per the picture sequence. Lou Grimaldi was on site to witness the tag of the CIBP to verify the lower part of the well was plugged. I have no evidence as to Lou witnessing the casing cuts or pull, but this operation was just a few hours after the CIBP tag. Walter Quay Senior Staff Drilling Engineer Caelus Energy Alaska, LLC 700 G St.,Suite 600 I Anchorage,AK 99501 Direct (907) 343-2129 I Cell (907)230-3961 walter.quay@CaelusEnergy.com Please note the new company and email address From: Koh, Shannon Sent: Tuesday, May 13, 2014 4:14 PM To: Quay, Walter Cc: Johnson, Vern; Franklin, Charlene Subject: Walter, I just wanted to verify with you what I am hearing from Charlene. According to the operation summary report for Sikum#1,AOGCC rep (Lou Grimaldi) was on site to witness so we did not take any of the required photos for the cut-off casing sections and site clearance,as written on Sundry 312-118 for Sikumi#1. Is this correct? 1 Shannon Koh I Sr.Site Records Coordinator Caelus Energy Alaska 1700 G Street Suite 600,Anchorage,Alaska 99501 Direct 907 343 2128 I Shannon.Koh(a)caelusenergy.com(new e-mail address) 2 Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Tuesday, May 06, 2014 2:35 PM To: 'dustin.bruce@pxd.com' Cc: Schwartz, Guy L(DOA); Bettis, Patricia K(DOA); Davies, Stephen F (DOA) Subject: Sikumi 1, PTD 212-008, Sundry 312-118, P&A photos Dear Mr. Bruce: I am completing the final compliance check for Sikumi 1, PTD 212-008,API 50-703-20654-00-00,completed on 4/6/2012 and due for release to the public on 5/6/2014. During my review of the well history folder I noticed that no photos were provided to document the cut-off casing sections and site clearance, as written on Sundry 312-118. Please provide the required photos via email and I will include them in the well history folder. If you have any questions, please contact me. Sincerely, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission meredith.guhl@alaska.gov Direct: (907)793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 1 021 ,2 -0-OF 23I Guhl, Meredith D (DOA) From: Koh, Shannon [Shannon.Koh@caelusenergy.com] Sent: Tuesday, May 06, 2014 3:30 PM To: Guhl, Meredith D (DOA) Subject: Sikumi 1, PTD 212-008, Inclination Survey Attachments: Sikumi#1 Definitive Survey Data.zip Hello Meredith, Per your request, I am sending a zip file in attachment that contains definitive surveys for Sikumi#1 and Sikumi#1 PB1. Thank you! Shannon Koh I Sr.Site Records Coordinator Caelus Energy Alaska I 700 G Street Suite 600,Anchorage,Alaska 99501 Direct 907 343 2128 I Shannon.Koh(c�caelusenergy.com(new e-mail address) 1 Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Tuesday, May 06, 2014 11:31 AM To: Koh, Shannon Cc: Davies, Stephen F (DOA); Bettis, Patricia K(DOA) Subject: Sikumi 1, PTD 212-008, Inclination Survey Tracking: Recipient Read Koh,Shannon Davies,Stephen F(DOA) Read:5/6/2014 11:33 AM Bettis, Patricia K(DOA) Shannon, I am completing the final compliance review for Sikumi 1, PTD 212-008,API 50-703-20654-00-00, completed on 4/6/2012 and due for release today, 5/6/2014. During my review I noticed that digital versions of the inclination surveys have not yet been provided. Because the confidentiality period on the well is ending today, could you please email me both a pdf version and an excel/text/ASCII version of the final definitive survey for Sikumi 1 and Sikumi 1 PB1, as completed by Halliburton on April 23, 2012? If you have any questions, please contact me. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission meredith.guhl@alaska.gov Direct: (907)793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 1 Guhl, Meredith D (DOA) From: Decker, Paul L(DNR) Sent: Tuesday, May 06, 2014 11:04 AM To: Guhl, Meredith D (DOA) Cc: Bettis, Patricia K(DOA); Davies, Stephen F (DOA) Subject: RE: Sikumi 1, PTD 212-008 Meredith, Pioneer/Caelus have not requested extended confidentiality for Sikumi 1. Thanks for checking. -Paul From: Guhl, Meredith D (DOA) Sent: Tuesday, May 06, 2014 8:56 AM To: Decker, Paul L (DNR) Cc: Bettis, Patricia K (DOA); Davies, Stephen F (DOA) Subject: Sikumi 1, PTD 212-008 Hello Paul, Sikumi 1, drilled by Pioneer Natural Resources and completed on 4/6/2012, is due to be released today. Has extended confidentiality been requested for this well? Sorry for the short notice,the date snuck up on me. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 1 RECEIVED PIONEER NOV 202012 NATURAL RESOURCES ALASKA AOGCC Letter of Transmittal Date: November 20, 2012 FROM TO Shannon Koh AOGCC Pioneer Natural Resources Attn: Howard Okland 700 G Street, Suite 600 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 Anchorage, AK 99501 INFORMATION TRANSMITTED ❑ Letter ❑ Maps ❑ Report X Other—CDs ❑ Agreement DETAIL QTY DESCRIPTION Nuna 1 (API:50-103-20645-0000) Produced water analysis, Recombined fluid 2 CDs validation, Separator fluid study . U s--c3 --a-Sikumi 1 (API:50-703-20654-0000) Final sample validation We request that all data be treated as confidential information. Thank you. Received by: LLS Date: Nke✓ 1 L L Please sign and return one copy to Pioneer Natural Resources, Inc., ATTN: Shannon Koh 700 G Street, Suite 600, Anchorage, AK 99501 907-343-2193 fax 907-343-2128 phone alb- A•43 �ON�, �{,f l NL STATE OF ALASKA D 1`I AL 4 OIL AND GAS CONSERVATION COMMI N WELL COMPLE l iON OR RECOMPLETION RORT AND LOG la.Well Status: Oil ❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned Q Suspended 1b.Well Class: 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory Q GINJ ❑ WINJ ❑ WAG ❑ WDSPL❑ No.of Completions: One SAN Cot i►t, Service ❑ Stratigraphic Test ❑ 2.Operator Name: 5.Date Comp.,Susp or 12.Permit to Drill Number: /- Pioneer Natural Resources Alaska, Inc. Aband.: 42012 212-008/312-106/312-118 3.Address: 700 G Street,Suite 600 6.Date Spudded: 13.API Number: Anchorage,AK 99501 3/9/2012 50-703-20654-00-00 4a.Location of Well(Govemmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 4581'FSL, 1170'FEL,Sec. 16,T13N, R7E, UM 3/30/2012 Sikumi-1 Top of Productive Horizon: 8.KB(ft above MSL): 39.54' 15.Field/Pool(s): 4574'FSL, 1229'FEL,Sec. 16,T13N, R7E, UM GL(ft above MSL): 5.9' Total Depth: 9.Plug Back Depth(MD+TVD): Undefined 4574'FSL, 1229' FEL,Sec. 16,T13N, R7E, UM 67'MD/67'TVD 4b.Location of Well(State Base Plane Coordinates,NAD 27): 10.Total Depth(MD+TVD): 16.Property Designation: Surface: x- 459258.00 y-6027468.00 Zone-ASP4 8500'MD/8499'TVD ADL 355037 TPI: x- 459198.45 y- 6027461.31 Zone-Asp 4 11.SSSV Depth(MD+ND): 17.Land Use Permit: Total Depth: x- 459198.45 y- 6027461.31 Zone-Asp 4 N/A 417497 18.Directional Survey: Yes No ❑ 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) 909'MD/909'TVD 21.Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/ND: MWD/LWD, DM, DGR, EWR, PWD, DDS,ALD,CTN, BAT N/A 23. CASING,LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH ND AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 20" 94# H-40 Surface 120' Surface 120' 20" Driven 51' • 13-3/8" 68# sTc Surface 1945' Surface 1945' 16" 445 sx PF'U;250 sx Class'G' 59' 9-5/8" 40# L-80 Surface 6363' Surface 6362' 12-1/4" 168 sx 12.5 ppg Class'G'; 160' HYD 521 386 sx 15.8 ppg Class'G' 7" 26# B M 6053' 6200' 6052' 6199' L 80 8-1/2" 975 sx Class'G' ' 3-1/2" 9.2# TC-Il 6200' 8490' 6199' 8489' 24.Open to production or injection? Yes LI NoU If Yes,list each 25. TUBING RECORD interval open(MD+ND of Top&Bottom;Perforation Size and Number): SIZE DEPTH SET(MD) PACKER SET(MD/TVD) N/A ZXP Flex III Liner Top Pkr @ 6053'MD/6052'ND None • CE��ED 26.DEPTH INTERVALI(MD)FRACTURE, AMOUNT AND KIND OF MATERIAL USED x.�.m.riaawrrr�. �� ! i ;0;, • r. ' A1 1 4 V12..• 200'-2000' 13-3/8"x 9-5/8"Annulus r.'i. ,U1v 1 Cement Down-Squeeze w/Freeze Protect - aw�0 265' Bridge Plug ,,-,i1 •"a • U 67'-265' Surface Cement Plug w/150 sx PF'C' 27. - PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): N/A Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Test Period - Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): Press. 24-Hour Rate - 28. CORE DATA Conventional Core(s)Acquired? Yes❑ No E . Sidewall Cores Acquired? Yes ❑ No❑., ' If Yes to either question,list formations and intervals cored(MD+TVD of top and bottom of each),and summarize lithology and presence of oil,gas or water (submit separate sheets with this form,if needed).Submit detailed descriptions,core chips,photographs and laboratory analytical results per 20 AAC 25.071. None RBDMS JUN 14 2012pm Form 10-407 Revised 12/2009 CONTINUED ON REVERSE Submit original only CUHFlUEHT1A1 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Q Yes ❑ No If yes, list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form,if Permafrost-Top 637' 637' needed,and submit detailed test information per 20 MC 25.071. Permafrost-Base 1546' 1546' West Sak 2057' 2057' Cret Tuff 2726' 2726' Hue 2 Shale 3090' 3090' Refer to attached document: Brook 2B 4194' 4193' Intertek Top Torok 4900' 4899' "Bottom Hole Sample Validation Study",dated 05/08/12 Top HRZ 5735' 5734' Nuiqsut 6111' 6110' Sag River 7387' 7386' Ivishak 7760' 7759' Kavik 8442' 8441' Formation at total depth: 8500' 8499' 31. List of Attachments: Summary of Daily Drilling Operations,Well Schematic Diagram,Survey 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Dustin Bruce,343-2173 Printed Name: Dustin Bruce (n • Title: Exploration Project Engineer Signature:1)64. 9 1 010 0 W ` 0(6-6j*jr V"-- Phone: 343-2173 Date: 5/13/2012 Well Name:Sikumi 1 J1 Permi{{No.:2„12-008/312-106/312-118 Prepared By:Kathy Campoamor, 343-2183 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1b: Classification of Service wells: Gas Injection,Water Injection,Water-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection,Observation,or Other.Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI(Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval(multiple completion),so state in item 1,and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced,showing the data pertinent to such interval). Item 27: Method of Operation: Flowing,Gas Lift,Rod Pump,Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations,and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 MC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation,and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 MC 25.071. Form 10-407 Revised 12/2009 9umi #1 P&A Schema" az' tocY Mud Line Cut 13-3/8" casing &20" conductor 5' / below ML (59' & 51' rkb) C°/1/6/061/T Set CIBP @ 265'0A '- . Cut 9-5/8" casing @ 160' rkb. 1 9.8 ppg Brine ► Set 200' plug in 9-5/8" (100' inside 9- ', 5/8" casing, 100' above cut) TOC @ — 60' rkb i 5 ti {{ rf� 13-3/8" surface casing cemented to a Nsurface (03/18/12) ED 13-3/8" x 9-5/8" annulus down 10.5 ppg drilling fluid -a squeezed from 200' to 2,000' = (03/27/12) rn c a 9-5/8" intermediate casing cemented n to 4,300' (03/26/12) u7 d Casing /Tubing Top Bot Item # Item MD(ft) TVD (ft) 1 20"94# H40 Conductor: 19.124" ID (18.936" Drift) 0 120 :ti •:h 2 13-3/8" 68#L-80 BTC(12.25" ID,12.25" Drift): 16" 0 1,945 'g :1) 3 9-5/8" 40#L-80 Hydril 521 (8.835" ID,8.679" Drift): 12-1/4" 0 6,362 : :tiff : 4 7 26# L-80BTC-M Liner(6.276" ID,6.151" Drift):8-1/2" 6,053 6,199 0 5 3-1/2 9.3# L-80 TC-II(2.992" ID,2.867" Drift) 6,200 8,489 Misc. Well Equipment/ Tools Item # Item MD(ft) TVD (ft) 6 ZXP Flex III Liner Hanger/Top Pkr 6,053 6,052 s PIONEERDate: Revision By: Comments 03-26-12 DBB Sikumi P&A NATURAL RESOURCES ALASKA 05-13-12 KLC Sikumi Schematic-Final Sikumi #1 Well Schematic Operations Summary Report - State Well Name: Sikumi I? I Q N E E R NATURAL RESOURCES Well Name: Sikumi Contractor: NABORS DRILLING Rig Number: 27-E 476114 Job Category: ORIG DRILL&COMPLETE Start Date: 3/3/2012 End Date: Start Depth Foot/Meters Dens Last Start Date End Date (ftKB) (ft) Mud(Ib/gal) Summary 3/4/2012 3/5/2012 0.0 Move Nabors 27-E from Nuna#1 to Sikumi#1. Start positioning sub base over well conductor. 3/5/2012 3/6/2012 0.0 Continue rig move and rig up on Sikumi pad_Position and berm all rig complexes.Start making utility connections at inter-connects between modules. 3/6/2012 3/7/2012 0.0 Position last rig complex in place.Continue rigging up. 3/7/2012 3/8/2012 0.0 9.50 Continue rigging up on Sikumi 1.Take on spud mud.Hook up Koomey lines to diverter and function test same.20"ball valve opened in 3 sec.21 1/4"x 2M diverter closed in 124 sec. Test all gas alarms-all passed.Perform accumulator draw down test. Initial pressure-2900 psi. 1950 psi after closing diverter. 16 sec to recover 200 psi after closing diverter.43 sec to reach full pressure. AOGCC rep Matt Herrera on location and witnessed all above tests. 3/8/2012 3/9/2012 0.0 9.60 PU 99 jts 5"DP to drill surface hole and rack back in derrick.PU HWDP&jars and rack back. Hold pre-spud meeting with crew and service companies.Put up diverter signs.Start bringing BHA components to rig floor. 3/9/2012 3/10/2012 120.0 655.00 9.70 MU 16"bit and spud well at 08:15 hrs.Drill down 3 stds HWDP to 310'.POH.MU components for BHA#1.Continue drilling 16"vertical surface hole to 775'MD/TVD. 3/10/2012 3/11/2012 775.0 1,350.00 10.00 Drill 16"new surface hole 1/1,980'MD. Circ hole clean and make short trip up 1/642'MD-OK. CBU.RIH to bottom. Drill ahead 1/2,125'MD. 3/11/2012 3/12/2012 2,125.0 890.00 10.00 Drill 16"surface hole t/3,010'MD/TVD. 3/12/2012 3/13/2012 3,010.0 171.00 10.00 Drill 16"hole to TD at 3,181'MD.Circ hole clean. POOH.LD BHA.RU to run 13 3/8"casing. Attempt to MU shoe track. 3/13/2012 3/14/2012 3,181.0 0.00 10.10 Continue making up shoe jts 1-3.Cross threaded between jts 2&3. Back out connection with rig tongs and clean off thread lock compound. Apply new thread lock and re-torque-OK. Run 13 3/8"casing working thru obstructions 111,810'MD-no further progress. 3/14/2012 3/15/2012 110.0 190.00 10.10 Attempting to wash 13 3/8"csg.to bottom.Cleaned out 111,815'. POOH laying down casing. MU BHA#2 for clean out run. 3/15/2012 3/16/2012 300.0 2,881.00 10.10 Finish BHA RIH&clean out to TD @ 3,181'MD.Circulate&condition for casing job.POOH& RU to run 13 3/8"casing.Run 13 3/8"68#BTC casing to±1700'. 3/16/2012 3/17/2012 3,181.0 0.00 9.60 Running 13 3/8"68#L-80 BTC casing. Tight hole f/1,760'111,945'.Wash&work pipe 1/1,945'. Stuck pipe© 1,945'.Work same w/no success. Prepare rig for cement job. 3/17/2012 3/18/2012 3,181.0 0.00 9.60 Finish RU to run 5"drill pipe cementing inner string.RIH CBU&perform surface cementing job. -Pump 60 bbls Dual Spacer @ 10.5 ppg w/red dye followed w/300 bbls(405 sacks) Permafrost 'L'Lead Cement(4)11.1ppg. Red Dye©surface recovered 200 bbls return till shut down after observing red dye in returns.Swap over&Pump Premium Class'G'Tail Cement(2%.)_Calcium Chloride Pellets(Accelerator)&(2%)CFR-2 Dispersant 15.8#&pump 52 bbls(245 sacks).Drop drill pipe wiper plug&chase w/10 bbls water.Followed w/23 bbls 9.6 ppg.mud w/rig pump. Bump plug on calculated strokes.Final circ.pressure©550 psi.Pressured to 1100 psi&hold 2 mins.Bled pressure&floats held.(NOTE) lost approximately 195 bbls returns thru out cement job.Had no returns thru Tail Cement. Rig down&POOH. Blow down&rig down. Page 1/4 Operations Summary Report - State Well Name: Sikumi PIONEER NATURAL RESOURCES co,v4.4/ 7/41 Start Depth Foot/Meters Dens Last Start Date End Date (ftKB) (ft) Mud(Ib/gal) Summary 3/18/2012 3/19/2012 3,181.0 0.00 9.60 POOH w/5"inner string.RU for top cement job -Samples taken w/1"pipe to 112'rotary measurement.Verify cement at 112'RKB. -.Cement Top Job 30 bbls(40 sacks)PF'L', 11.1 ppg cement to surface. -Nipple down Diverter system.Setting emergency slips. -AOGCC Rep.Lou Grimaldi was on location at 14:00 hrs.and waived witness of upcoming top job.Samples were obtained. NOTE:AOGCC was given 48 hrs.notice for upcoming BOP test at 08:00 hrs.on 3/15/2012. 3/19/2012 3/20/2012 3,181.0 0.00 9.60 Finish dressing 13 3/8"casing.stump.NU well head&BOPE.Shell test BOP to 2500 psi.PU 5" DP from pipeshed. 3/20/2012 3/21/2012 3,181.0 0.00 9.60 Finish picking up 102 jts 5"drill pipe&stand in derrick.Test BOPE per AOGCC permit to drill. Test annular preventer 250 psi low/2500 psi high.Test remaining BOPE 250 psi low/4500 psi high.Test gas detectors PVT-flow alarms all choke valves chokes floor safety valves. Koomey start pressure 3000 psi. 1580 draw down psi 25 sec from 200 psi build 76 sec to 3000 psi build 12 bottles nitrogen @ 2550 psi.average.Upper IBOP failed.(NOTE)BOPE test witnessed by Lou Grimaldi AOGCC.LD test tool blow down choke top drive&kill line.Make up BHA&test MWD. 3/21/2012 3/22/2012 3,181.0 0.00 9.90 RIH w/BHA#3 test casing.2500 psi-OK.Clean out shoe track&20'open hole.CBU run FIT to 12.5 ppg.Cleaning out f/1,965'MD 1/2,600'MD. 3/22/2012 3/23/2012 3,181.0 869.00 10.00 Cleaned out 1/3,181'. Apparent open hole side tracked at 2,100'.CBU Wiper trip&survey to 13 3/8"shoe @ 1,945'MD.Drill f/3,181'114,050'.MD. 3/23/2012 3/24/2012 4,050.0 2,068.00 10.50 Drill 12 1/4"Intermediate hole f/4,050'MD 1/6,118'MD. 3/24/2012 3/25/2012 6,118.0 252.00 10.50 Finish drill 12 1/4"new hole(/6,118't/6,370'MD. TD of intermediate hole Pump sweep&CBU 2X.POOH to 13 3/8"shoe @ 1,945'MD.Hole in good condition. RIH to bottom @ 6,370'.CBU 2X&pump sweep.POOH to BHA. 3/25/2012 3/26/2012 6,370.0 0.00 10.50 Finish POOH.LD BHA#3.Change top rams to 9 5/8"casing rams_&test same to 250 psi low/4500 psi high-Good test.RU casing equipment&make dummy run w/casing hanger. RU& run 9 5/8"casing 114,505'MD. 3/26/2012 3/27/2012 6,370.0 0.00 10.60 Finish running 9 5/8"casing and land same at 6,363'.CBU 2X,land casing on hanger.Pump 10 bbls water.Test lines to 3000 psi-OK Pump 60 bbls Dual Spacer 11.5 ppg followed w/Lead ' ' ••-• •• •• . .5 ppg w/15 pps microlite.75%halad R-344 .2%CFR- 3.15 pps EZ-Flo.25%SCR-100. Followed w/Tail Class'G'cement 79 bbls(386 sx) 15.8 ppg.6%Halad R-344.3%SCR-100 .1%CFR-3.Drop bottom plug prior to pumping cement. Drop second bottom plug after lead cement. Kick out top plug w/10 bbl water&displace cement w/rig pump 465 bbls bump plug @ 3 bpm 800 psi increase pressure to 1500 psi&hold.Bleed& check floats-OK.Cement in place @ 12:45 PM-Good Job.Run 9 5/8"packoff test same to 1500 psi held 10 min on chart-Good test.Chane rams from 95/8"to 27/8"X51/2"variables. MU floor valves to test pump. 3/27/2012 3/28/2012 6,370.0 0.00 10.00 Finish changing rams from 9 5/8"to 3.5"X 5.5"Variables Test BOPE 250 psi low/4500 psi high. Annular 250 psi low/2500 psi high.Annulus cement down-squeeze with freeze protect f/200' 1/2000'.Accumulator drawdown 2850 psi to 1500 psi, 15 secs to 200 psi 80 seconds to full recovery. 12 bottles nitrogen @ 2500 psi.Witness of test waived by AOGCC rep Jeff Jones at 1800 hrs on 03/24/12.MU BHA#4 Dropped 4 slip dies in hole.LD BHA#4&PU fishing tools. 3/28/2012 3/29/2012 6,370.0 0.00 10.65 RIH w/jet basket.Test casing to 3500 psi for 30 mins.Chart same-good test. Cut 3'core w/jet basket&POOH-no slip dies recovered. Install wear bushing with screen welded on bottom. Function all rams. Recovered 3 of 4 slip die segments in wear ring screen. MU BHA#4&RIH. 3/29/2012 3/30/2012 6,370.0 1,303.00 10.00 Drill out shoe track+20'new hole 116,390'MD while displacing to new 10.0 ppg Baradril-N mud. Circ and cond mud.Pull up inside 9 5/8"shoe. Perform FIT to 12.54 ppg EMW-840 psi over 10.0 ppg MW.Shoe TVD=6,369'. Drill ahead in 8 1/2"new hole f/6,390'1/7,673'MD. Page 2/4 PI.0 N E E R Operations Summary Report - State Well Name: Sikumi NATURAL RESOURCES CO/W7D ENT/ Start Depth Foot/Meters Dens Last Start Date End Date (ftKB) (5) Mud(lb/gal) Summary 3/30/2012 3/31/2012 7,673.0 827.00 10.05 Drill 8 1/2"hole to TD at 8,500'MD.Circ and condition hole.POOH to 9 5/8"casing shoe-no hole problems. RIH to bottom.Circ btms up 3x.POOH and start MAD pass f/7,570'117,430'bit depth.POOH SLM. 3/31/2012 4/1/2012 8,500.0 0.00 10.10 Finish POOH. Download LWD data and LD BHA components. RU wireline and run RCI pressure and fluid sampling tool on 5"DP. MU side entry sub and pump down E-line with wet connect to tool.RIH 116,777'. 4/1/2012 4/2/2012 8,500.0 0.00 10.15 Lost communication with logging tool at 6,819'(6 stands into open hole).Pull up to side entry sub and verify wet connect engaged-OK. POOH with E-line to check electrical connections at wet connect head.E-line wet connect head checks out-OK. POOH with logging tool to check out tools for electrical problem. LD sampling tool and PU back up tool.RIH on DP.MU side entry sub.Pump E-line down to docking head-good connection.RIH to formation sampling depth-tool working properly. Commence taking pressure readings at pre-determined depths. 4/2/2012 4/3/2012 8,500.0 0.00 10.10 Continue DP conveyed logging operations-get formation fluid samples and pressures with RCI formation tester as per program.POOHgLD tools. Note:AOGCC rep Lou Grimaldi granted an extension on the 7 day BOP test cycle due to running the P&A abandonment string on the day the BOP test was due. 4/3/2012 4/4/2012 8,500.0 0.00 10.10 Run 3.5"x 7"abandonment string in open hole.MU liner hanger and liner top packer. RIH with abandonment string to bottom on 5"DP. Space out to place float shoe at 8,490'MD and liner top at 6,053'MD.Circ and cond mud.Pump Q (,� 10 bbls water.Test lines to 4000 psi.Pump 20 bbls dual spacer at 12.5 mg followed by 200 bbls (950 sx)15.8 ppq Class G cement with additives.) 1,../\ Release liner wiper plug and pump 5 bbls(25 sx)15.8 ppg Class G cement. Displace with rig P pump at 6 bpm @ 1000 psi final pressure.CIP at 22:45 hrs. Bump liner wiper plug and set liner hanger. Release off hanger and set liner top packer. POOH 5 stands above liner top and CBU. 4/4/2012 4/5/2012 8,500.0 0.00 10.10 Finish LD DP and liner running tool.LD tubulars from derrick.Test 9 5/8"casing&Liner top packer/cement plug to 2000 psi f/30 charted min.Good test.Set CIBP on DP at 265'BRT.RIH with casing cutter and cut 9 5/8"casing at 160'BRT.Pull wear bushing.MU spear and engage 9 5/8"casing in wellhead. Note:AOGCC Rep.Lou Grimaldi waived witness of 9 5/8"x liner top packer test on 4/4/2012. 4/5/2012 4/6/2012 8,500.0 0.00 10.10 RIH with 5"DP and muleshoe.Tag bridge plug at 265'BRT. Lay-25-b1:415nsY)eermafmst C surface cement plug at 15.6 ppq from top of bridge plug at 265' to approx 110'above 9 5/8"stub to-50'BRT. RIH and to 60'BRT(100'above 9 5/8"casing stub)and circ from 60'to surface.Got back approx 3 bbls of cement. POOH.Clear floor.Tag cement plug at 65'BRT,POOH and test plug to 1000 psi for 30 min- good test. ND BOPE. 4/6/2012 4/7/2012 8,500.0 0.00 10.10 Finish ND BOP stack and remove wellhead.RIH w/DP and tag upper cement plug at 67'BRT with AOGCC Rep present to witness. RIH with casing cutterand- 3/13"-31 "and 20"casing strings at 59'BRT.Remove 13 3/8"cut _casing stub.20"conductor cut-off remained in place. Re-cut 20"conductor at 51'BRT and pull stub to complete well abandonment.Continue rigging down and moving equipment off location. 4/7/2012 4/8/2012 8,500.0 0.00 10.10 Rig down and prepare to move off Sikumi location. Rig released from well operations on Sikumi 1 at 23:59 hrs on April 7th,2012. 4/8/2012 4/9/2012 8,500.0 0.00 10.10 Rig down and prepare to move off Sikumi location. 4/9/2012 4/10/2012 8,500.0 0.00 10.10 Rig down and prepare to move off Sikumi location.Trucks on location to start moving complexes apart. Page 3/4 PI.O N E E R Operations Summary Report - State Well Name: Sikumi NATURALRESOURCES fin tN7 74/ Start Depth Foot/Meters Dens Last Start Date End Date (ftKB) (ft) Mud(Ib/gal) Summary 4/10/2012 4/11/2012 8,500.0 0.00 10.10 Continue de-mobilizing off Sikumi location back to Deadhorse. Trucks with one pipe shed unit,aux motor complex and pump module left location at approx 02:00 hrs. 4/11/2012 4/12/2012 8,500.0 0.00 10.10 Load and spot main motor complex,pits and pipeshed at entrance to Sikumi pad.Move substructure off of well.Move motor complex,pits and pipeshed to Nabors yard in Deadhorse. 4/12/2012 4/13/2012 8,500.0 0.00 10.10 Continue moving motor complex,pits and pipeshed to Nabors yard in Deadhorse.Spot same in yard. -Crew prepping Substructure for move.Load Mech/Welding shop. -Hook up trucks to Sub.Move Sub and shop from Sikumi Pad to Kuparuk River Bridge. -Sub broke down on Bridge at approximately 20:00 hrs.due to front axle failure on gooseneck. -Remove wheels f/gooseneck. -Remove cellar box from well area.Clean out all remaining debris from cellar area and suck out remaining fluid. 4/13/2012 4/14/2012 8,500.0 0.00 10.10 Repair/replace axle and wheel section on front gooseneck of substructure.Move sub& mech/welding shop from Kuparuk River Bridge to Nabors yard in Deadhorse. 4/14/2012 4/15/2012 8,500.0 0.00 10.10 Cost placeholder 5/29/2012 5/30/2012 8,500.0 0.00 10.10 Cost placeholder-tank cleaning rental Page 4/4 CO/Vill, /up, Well Planning - Pioneer - Oooguruk Sikumi #1 Sikumi #1 Sikumi #1 API: 50-703-20654-00 Sperry Drilling Services Definitive Survey Report 23 April, 2012 HALLIBURTON Sperry Drilling Services Pioneer Natural Resources CONFIDENT Definitive Survey Report 4t Company: Well Planning-Pioneer-Oooguruk Local Co-ordinate Reference: Well Sikumi#1 Project: Sikumi#1 TVD Reference: Sikumi#1 @ 37.93ft((Nabors 27E(4.20+33.73)) Site: Sikumi#1 MD Reference: Sikumi#1 @ 37.93ft((Nabors 27E(4.20+33.73)) Well: Sikumi#1 North Reference: True Wellbore: Sikumi#1 Survey Calculation Method: Minimum Curvature Design: Sikumi#1 Database: EDM_Alaska Project Sikumi#1 Map System: US State Plane 1927(Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927(NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Well Sikumi#1 Well Position +N/-S 0.00 ft Northing: 6,027,468.50 ft Latitude: 70°29'9.520 N +EI-W 0.00 ft Easting: 459,259.09 ft Longitude: 150°19'58.708 W' Position Uncertainty 0.00 ft Wellhead Elevation: 37.93 ft Ground Level: 4.20ft Wellbore Sikumi#1 Magnetics Model Name Sample Date Declination Dip Angle Field Strength (?) (7) (nT) IGRF200510 12/31/2009 21.95 80.80 57,755 Design Sikumi#1 Audit Notes: Version: 1.0 Phase: ACTUAL Tie On Depth: 2,100.00 Vertical Section: Depth From(TVD) +N/-S +E/-W Direction (ft) (ft) (ft) (bearing) 33.73 0.00 0.00 0.00 Survey Program Date 4/23/2012 From To Survey (ft) (ft) Survey(Wellbore) Tool Name Description Start Date 300.16 2,100.00 Sikumi#1 MWD(Sikumi#1 PB1) MWD+SCC MWD+Short Collar correction 03/12/2012 2,184.87 8,460.45 Sikumi#1 MWD(Sikumi#1) MWD+SCC MWD+Short Collar correction 03/23/2012 Survey Map Map Vertical MD Inc Azi TVD TVDSS +N/-S +E/-W Northing Easting DLS Section (ft) (?) (bearin (ft) (ft) (ft) (ft) (ft) (ft) (°/100') (ft) Survey Tool Name 33.73 0.00 0.00 33.73 -4.20 0.00 0.00 6,027,468.50 459,259.09 0.00 0.00 UNDEFINED 300.07 0.09 169.77 300.07 262.14 -0.21 0.04 6,027,468.29 459,259.13 0.03 -0.21 MWD+SCC(1) 410.29 0.14 186.73 410.29 372.36 -0.42 0.04 6,027,468.08 459,259.12 0.05 -0.42 MWD+SCC(1) 501.37 0.39 215.21 501.37 463.44 -0.79 -0.16 6,027,467.71 459,258.93 0.30 -0.79 MWD+SCC(1) 680.62 0.20 347.01 680.62 642.69 -0.98 -0.58 6,027,467.52 459,258.51 0.30 -0.98 MWD+SCC(1) 783.23 0.06 275.60 783.23 745.30 -0.80 -0.67 6,027,467.70 459,258.41 0.18 -0.80 MWD+SCC(1) 879.26 0.09 61.96 879.26 841.33 -0.76 -0.65 6,027,467.74 459,258.43 0.15 -0.76 MWD+SCC(1) 975.41 0.20 176.16 975.41 937.48 -0.89 -0.58 6,027,467.61 459,258.51 0.26 -0.89 MWD+SCC(1) 1,071.05 0.31 156.98 1,071.05 1,033.12 -1.30 -0.46 6,027,467.20 459,258.62 0.14 -1.30 MWD+SCC(1) 1,258.93 0.94 172.90 1,258.91 1,220.98 -3.30 -0.07 6,027,465.20 459,259.00 0.34 -3.30 MWD+SCC(1) 1,479.74 0.80 162.94 1,479.70 1,441.77 -6.57 0.60 6,027,461.93 459,259.66 0.09 -6.57 MWD+SCC(1) 1,544.91 0.48 189.08 1,544.86 1,506.93 -7.27 0.69 6,027,461.23 459,259.74 0.65 -7.27 MWD+SCC(1) 1,628.74 0.69 138.94 1,628.69 1,590.76 -8.00 0.97 6,027,460.50 459,260.01 0.63 -8.00 MWD+SCC(1) 4/232012 5:54:30PM Page 2 COMPASS 2003.16 Build 42 Pioneer Natural Resources CONROE- Definitive �Survey Report 841 Company: Well Planning-Pioneer-Oooguruk Local Co-ordinate Reference: Well Sikumi#1 Project: Sikumi#1 TVD Reference: Sikumi#1 @ 37.93ft((Nabors 27E(4.20+33.73)) Site: Sikumi#1 MD Reference: Sikumi#1 @ 37.93ft((Nabors 27E(4.20+33.73)) Well: Sikumi#1 North Reference: True Wellbore: Sikumi#1 Survey Calculation Method: Minimum Curvature Design: Sikumi#1 Database: EDM_Alaska Survey Map Map Vertical MD Inc Azi TVD TVDSS +N/-S +E/-W Northing Easting DLS Section (ft) (?) (bearin (ft) (ft) (ft) (ft) (ft) (ft) (°/100') (ft) Survey Tool Name 1,734.76 0.57 141.20 1,734.70 1,696.77 -8.89 1.72 6,027,459.60 459,260.76 0.12 -8.89 MWD+SCC(1) 1,930.57 0.53 118.34 1,930.51 1,892.58 -10.08 3.12 6,027,458.40 459,262.16 0.11 -10.08 MWD+SCC(1) 2,020.00 0.74 145.52 2,019.93 1,982.00 -10.75 3.82 6,027,457.73 459,262.85 0.40 -10.75 MWD+SCC(1) 2,100.00 0.75 116.04 2,099.92 2,061.99 -11.41 4.58 6,027,457.07 459,263.61 0.47 -11.41 MWD+SCC(1) 2,184.87 1.86 91.56 2,184.77 2,146.84 -11.69 6.46 6,027,456.77 459,265.48 1.43 -11.69 MWD+SCC(2) 2,374.41 2.00 88.06 2,374.20 2,336.27 -11.66 12.84 6,027,456.77 459,271.86 0.10 -11.66 MWD+SCC(2) 2,473,90 1.99 87.81 2,473.63 2,435.70 -11.54 16.30 6,027,456.87 459,275.33 0.01 -11.54 MWD+SCC(2) 2,566.04 2.00 89.15 2,565.72 2,527.79 -11.45 19.51 6,027,456.94 459,278.53 0.05 -11.45 MWD+SCC(2) 2,664.22 0.76 56.03 2,663.87 2,625.94 -11.06 21.76 6,027,457.32 459,280.79 1.45 -11.06 MWD+SCC(2) 2,757.05 0.58 12.41 2,756.69 2,718.76 -10.26 22.37 6,027,458.12 459,281.40 0.57 -10.26 MWD+SCC(2) 2,854.87 0.62 27.83 2,854.51 2,816.58 -9.31 22.72 6,027,459.07 459,281.76 0.17 -9.31 MWD+SCC(2) 2,948.26 0.68 27.38 2,947.89 2,909.96 -8.37 23.22 6,027,460.00 459,282.26 0.06 -8.37 MWD+SCC(2) 3,046.05 0.78 32.63 3,045.67 3,007.74 -7.29 23.84 6,027,461.07 459,282.89 0.12 -7.29 MWD+SCC(2) 3,141.65 0.79 36.57 3,141.26 3,103.33 -6.22 24.58 6,027,462.15 459,283.64 0.06 -6.22 MWD+SCC(2) • 3,232.61 0.94 37.10 3,232.21 3,194.28 -5.12 25.41 6,027,463.24 459,284.47 0.17 -5.12 MWD+SCC(2) 3,328.58 0.84 38.59 3,328.17 3,290.24 -3.94 26.32 6,027,464.41 459,285.39 0.11 -3.94 MWD+SCC(2) 3,426.61 0.40 56.34 3,426.20 3,388.27 -3.19 27.05 6,027,465.16 459,286.13 0.48 -3.19 MWD+SCC(2) 3,521.65 0.38 70.98 3,521.23 3,483.30 -2.90 27.63 6,027,465.45 459,286.70 0.11 -2.90 MWD+SCC(2) 3,616.49 0.33 71.14 3,616.07 3,578.14 -2.71 28.18 6,027,465.63 459,287.26 0.05 -2.71 MWD+SCC(2) 3,805.43 1.01 234.82 3,805.00 3,767.07 -3.50 27.34 6,027,464.85 459,286.41 0.70 -3.50 MWD+SCC(2) 3,900.37 1.51 229.75 3,899.92 3,861.99 -4.79 25.70 6,027,463.57 459,284.76 0.54 -4.79 MWD+SCC(2) 3,995.77 1.49 230.17 3,995.29 3,957.36 -6.39 23.79 6,027,461.98 459,282.84 0.02 -6.39 MWD+SCC(2) 4,091.46 1.61 231.88 4,090.94 4,053.01 -8.02 21.78 6,027,460.36 459,280.82 0.13 -8.02 MWD+SCC(2) 4,283.63 1.74 237.15 4,283.03 4,245.10 -11.27 17.20 6,027,457.14 459,276.23 0.10 -11.27 MWD+SCC(2) 4,379.50 1.39 268.41 4,378.87 4,340.94 -12.09 14.82 6,027,456.33 459,273.84 0.95 -12.09 MWD+SCC(2) 4,475.97 1.44 277.45 4,475.31 4,437.38 -11.97 12.44 6,027,456.47 459,271.47 0.24 -11.97 MWD+SCC(2) 4,570.02 1.48 278.31 4,569.33 4,531.40 -11.64 10.07 6,027,456.81 459,269.10 0.05 -11.64 MWD+SCC(2) 4,665.32 1.41 273.09 4,664.60 4,626.67 -11.40 7.68 6,027,457.06 459,266.71 0.16 -11.40 MWD+SCC(2) 4,760.74 1.55 276.36 4,759.99 4,722.06 -11.19 5.23 6,027,457.28 459,264.26 0.17 -11.19 MWD+SCC(2) 4,856.29 1.49 274.54 4,855.50 4,817.57 -10.95 2.70 6,027,457.54 459,261.73 0.08 -10.95 MWD+SCC(2) 4,952.27 1.58 279.61 4,951.45 4,913.52 -10.63 0.16 6,027,457.87 459,259.19 0.17 -10.63 MWD+SCC(2) 5,047.16 1.62 275.17 5,046.30 5,008.37 -10.29 -2.47 6,027,458.22 459,256.56 0.14 -10.29 MWD+SCC(2) 5,142.93 1.63 277.26 5,142.03 5,104.10 -10.00 -5.17 6,027,458.53 459,253.87 0.06 -10.00 MWD+SCC(2) 5,237.97 1.61 278.27 5,237.03 5,199.10 -9.63 -7.83 6,027,458.91 459,251.21 0.04 -9.63 MWD+SCC(2) 5,334.71 1.59 279.47 5,333.74 5,295.81 -9.22 -10.50 6,027,459.34 459,248.54 0.04 -9.22 MWD+SCC(2) 5,430.67 1.55 280.09 5,429.66 5,391.73 -8.77 -13.09 6,027,459.80 459,245.95 0.05 -8.77 MWD+SCC(2) 5,526.73 1.46 280.46 5,525.69 5,487.76 -8.32 -15.57 6,027,460.27 459,243.47 0.09 -8.32 MWD+SCC(2) 5,622.28 1.42 279.49 5,621.21 5,583.28 -7.90 -17.94 6,027,460.69 459,241.11 0.05 -7.90 MWD+SCC(2) 5,717.93 1.27 278.62 5,716.83 5,678.90 -7.55 -20.16 6,027,461.06 459,238.89 0.16 -7.55 MWD+SCC(2) 5,813.86 1.25 277.77 5,812.74 5,774.81 -7.25 -22.24 6,027,461.37 459,236.81 0.03 -7.25 MWD+SCC(2) 4/232012 5:54:30PM Page 3 COMPASS 2003.16 Build 42 Pioneer Natural Resources CONFIBEN Definitive Survey Report 1141 Company: Well Planning-Pioneer-Oooguruk Local Co-ordinate Reference: Well Sikumi#1 Project: Sikumi#1 TVD Reference: Sikumi#1 ©37.93ft((Nabors 27E(4.20+33.73)) Site: Sikumi#1 MD Reference: Sikumi#1 ©37.93ft((Nabors 27E(4.20+33.73)) Well: Sikumi#1 North Reference: True Wellbore: Sikumi#1 Survey Calculation Method: Minimum Curvature Design: Sikumi#1 Database: EDM_Alaska Survey Map Map Vertical MD Inc Azi TVD TVDSS +NI-S +E/-W Northing Easting DLS Section (ft) (?) (bearin (ft) (ft) (ft) (ft) (ft) (ft) (°/100') (ft) Survey Tool Name 5,909.09 1.36 284.12 5,907.94 5,870.01 -6.83 -24.37 6,027,461.80 459,234.68 0.19 -6.83 MWD+SCC(2) 6,004.60 1.42 282.08 6,003.42 5,965.49 -6.31 -26.63 6,027,462.34 459,232.43 0.08 -6.31 MWD+SCC(2) 6,101.20 1.44 285.31 6,099.99 6,062.06 -5.74 -28.97 6,027,462.92 459,230.09 0.09 -5.74 MWD+SCC(2) 6,196.71 1.44 281.79 6,195.47 6,157.54 -5.18 -31.30 6,027,463.50 459,227.76 0.09 -5.18 MWD+SCC(2) 6,292.33 0.78 309.71 6,291.08 6,253.15 -4.51 -32.98 6,027,464.17 459,226.09 0.87 -4.51 MWD+SCC(2) 6,317.37 0.68 324.65 6,316.11 6,278.18 -4.28 -33.19 6,027,464.40 459,225.87 0.86 -4.28 MWD+SCC(2) 6,379.32 0.57 312.54 6,378.06 6,340.13 -3.78 -33.63 6,027,464.91 459,225.44 0.28 -3.78 MWD+SCC(2) 6,482.35 0.44 304.82 6,481.09 6,443.16 -3.20 -34.33 6,027,465.49 459,224.74 0.14 -3.20 MWD+SCC(2) 6,577.91 0.44 278.45 6,576.64 6,538.71 -2.94 -35.00 6,027,465.75 459,224.08 0.21 -2.94 MWD+SCC(2) 6,674.12 0.77 248.34 6,672.85 6,634.92 -3.12 -35.97 6,027,465.57 459,223.11 0.47 -3.12 MWD+SCC(2) 6,767.15 1.00 244.99 6,765.87 6,727.94 -3.70 -37.28 6,027,465.01 459,221.79 0.25 -3.70 MWD+SCC(2) 6,864.98 1.42 248.10 6,863.68 6,825.75 -4.51 -39.18 6,027,464.20 459,219.89 0.43 -4.51 MWD+SCC(2) 6,959.26 1.30 244.59 6,957.93 6,920.00 -5.41 -41.23 6,027,463.32 459,217.83 0.15 -5.41 MWD+SCC(2) 7,056.44 1.23 246.37 7,055.09 7,017.16 -6.30 -43.18 6,027,462.44 459,215.88 0.08 -6.30 MWD+SCC(2) 7,151.68 1.17 253.52 7,150.30 7,112.37 -6.98 -45.05 6,027,461.76 459,214.00 0.17 -6.98 MWD+SCC(2) 7,343.92 0.87 258.35 7,342.51 7,304.58 -7.83 -48.36 6,027,460.93 459,210.69 0.16 -7.83 MWD+SCC(2) 7,439.25 0.84 253.03 7,437.83 7,399.90 -8.18 -49.74 6,027,460.59 459,209.31 0.09 -8.18 MWD+SCC(2) 7,535.03 0.74 247.86 7,533.60 7,495.67 -8.62 -50.98 6,027,460.16 459,208.06 0.13 -8.62 MWD+SCC(2) 7,631.05 0.64 252.89 7,629.62 7,591.69 -9.01 -52.07 6,027,459.77 459,206.97 0.12 -9.01 MWD+SCC(2) 7,727.82 0.58 260.53 7,726.38 7,688.45 -9.25 -53.07 6,027,459.54 459,205.97 0.10 -9.25 MWD+SCC(2) 7,823.93 0.57 276.37 7,822.49 7,784.56 -9.28 -54.02 6,027,459.52 459,205.02 0.17 -9.28 MWD+SCC(2) 7,919.85 0.62 267.62 7,918.40 7,880.47 -9.25 -55.02 6,027,459.55 459,204.02 0.11 -9.25 MWD+SCC(2) 8,014.87 0.55 281.40 8,013.42 7,975.49 -9.18 -55.98 6,027,459.63 459,203,06 0.16 -9.18 MWD+SCC(2) 8,110.85 0.53 285.34 8,109.39 8,071.46 -8.97 -56.86 6,027,459.84 459,202.18 0.04 -8.97 MWD+SCC(2) 8,205.41 0.53 287.48 8,203.95 8,166.02 -8.72 -57.70 6,027,460.09 459,201.35 0.02 -8.72 MWD+SCC(2) 8,302.65 0.68 290.34 8,301.18 8,263.25 -8.39 -58.67 6,027,460.43 459,200.38 0.16 -8.39 MWD+SCC(2) 8,398.27 0.68 295.47 8,396.80 8,358.87 -7.95 -59.71 6,027,460.88 459,199.34 0.06 -7.95 MWD+SCC(2) 8,460.45 0.50 295.96 8,458.97 8,421.04 -7.67 -60.29 6,027,461.16 459,198.76 0.29 -7.67 MWD+SCC(2) 8,500.00 0.50 295.96 8,498.52 8,460.59 -7.52 -60.60 6,027,461.31 459,198.45 0.00 -7.52 PROJECTED to TD 4232012 5:54:30PM Page 4 COMPASS 2003.16 Build 42 CO/Vrin, uritineit Well Planning - Pioneer - Oooguruk Sikumi #1 Sikumi #1 Sikumi #1 PB1 API: 50-703-20654-70 Sperry :. . lli gServices Definitive SurveyReport ,4 I 23 April, 2012 HALLIBURTON Sperry Drilling Services Pioneer Natural Resources CONrI5fN DefiveeeportTIA Company: Well Planning-Pioneer-Oooguruk Local Co-ordinate Reference: Well Sikumi#1 Project: Sikumi#1 TVD Reference: Sikumi#1 @ 37.93ft((Nabors 27E(4.20+33.73)) Site: Sikumi#1 MD Reference: Sikumi#1 ©37.93ft((Nabors 27E(4.20+33.73)) Well: Sikumi#1 North Reference: True Wellbore: Sikumi#1 PB1 Survey Calculation Method: Minimum Curvature Design: Sikumi#1 PB1 Database: EDM_Alaska Project Sikumi#1 Map System: US State Plane 1927(Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927(NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Well Sikumi#1 Well Position +N/-S 0.00 ft Northing: 6,027,468.50 ft Latitude: 70°29'9.520 N +EI-W 0.00 ft Easting: 459,259.09 ft Longitude: 150°19'58.708 W Position Uncertainty 0.00 ft Wellhead Elevation: 37.93 ft Ground Level: 4.20 ft Wellbore Sikumi#1 PB1 Magnetics Model Name Sample Date Declination Dip Angle Field Strength 1 (?) (?) (nT) IGRF200510 12/31/2009 21.95 80.80 57,755 Design Sikumi#1 PB1 Audit Notes: Version: 1.0 Phase: ACTUAL Tie On Depth: 33.73 Vertical Section: Depth From(TVD) +N/-S +E/-W Direction (ft) (ft) (ft) (bearing) 33.73 0.00 0.00 0.00 Survey Program Date 4/23/2012 From To Survey (ft) (ft) Survey(Wellbore) Tool Name Description Start Date 300.16 3,079.89 Sikumi#1 MWD(Sikumi#1 PB1) MWD+SCC MWD+Short Collar correction 03/12/2012 Survey Map Map Vertical MD Inc Azi TVD TVDSS +N/-S +E/-W Northing Easting DLS Section (ft) (?) (bearin (ft) (ft) (ft) (ft) (ft) (ft) (°/100) (ft) Survey Tool Name 33.73 0.00 0.00 33.73 -4.20 0.00 0.00 6,027,468.50 459,259.09 0.00 0.00 UNDEFINED 300.07 0.09 169.77 300.07 262.14 -0.21 0.04 6,027,468.29 459,259.13 0.03 -0.21 MWD+SCC(1) 410.29 0.14 186.73 410.29 372.36 -0.42 0.04 6,027,468.08 459,259.12 0.05 -0.42 MWD+SCC(1) 501.37 0.39 215.21 501.37 463.44 -0.79 -0.16 6,027,467.71 459,258.93 0.30 -0.79 MWD+SCC(1) 680.62 0.20 347.01 680.62 642.69 -0.98 -0.58 6,027,467.52 459,258.51 0.30 -0.98 MWD+SCC(1) 783.23 0.06 275.60 783.23 745.30 -0.80 -0.67 6,027,467.70 459,258.41 0.18 -0.80 MWD+SCC(1) 879.26 0.09 61.96 879.26 841.33 -0.76 -0.65 6,027,467.74 459,258.43 0.15 -0.76 MWD+SCC(1) 975.41 0.20 176.16 975.41 937.48 -0.89 -0.58 6,027,467.61 459,258.51 0.26 -0.89 MWD+SCC(1) 1,071.05 0.31 156.98 1,071.05 1,033.12 -1.30 -0.46 6,027,467.20 459,258.62 0.14 -1.30 MWD+SCC(1) 1,258.93 0.94 172.90 1,258.91 1,220.98 -3.30 -0.07 6,027,465.20 459,259.00 0.34 -3.30 MWD+SCC(1) 1,479.74 0.80 162.94 1,479.70 1,441.77 -6.57 0.60 6,027,461.93 459,259.66 0.09 -6.57 MWD+SCC(1) 1,544.91 0.48 189.08 1,544.86 1,506.93 -7.27 0.69 6,027,461.23 459,259.74 0.65 -7.27 MWD+SCC(1) 1,628.74 0.69 138.94 1,628.69 1,590.76 -8.00 0.97 6,027,460.50 459,260.01 0.63 -8.00 MWD+SCC(1) 1,734.76 0.57 141.20 1,734.70 1,696.77 -8.89 1.72 6,027,459.60 459,260.76 0.12 -8.89 MWD+SCC(1) 4/23/2012 5:35:02PM Page 2 COMPASS 2003.16 Build 42 Pioneer Natural Resources CONFIDENT! Definitive Survey Report AL Company: Well Planning-Pioneer-Oooguruk Local Co-ordinate Reference: Well Sikumi#1 Project: Sikumi#1 TVD Reference: Sikumi#1 @ 37.93ft((Nabors 27E(4.20+33.73)) Site: Sikumi#1 MD Reference: Sikumi#1 @ 37.93ft((Nabors 27E(4.20+33.73)) Well: Sikumi#1 North Reference: True Wellbore: Sikumi#1 PB1 Survey Calculation Method: Minimum Curvature Design: Sikumi#1 PB1 Database: EDM_Alaska Survey Map Map Vertical MD Inc Azi TVD TVDSS +NI-S +E/-W Northing Easting DLS Section (ft) (?) (bearin (ft) (ft) (ft) (ft) (ft) (ft) (°1100') (ft) Survey Tool Name 1,930.57 0.53 118.34 1,930.51 1,892.58 -10.08 3.12 6,027,458.40 459,262.16 0.11 -10.08 MWD+SCC(1) 2,020.00 0.74 145.52 2,019.93 1,982.00 -10.75 3.82 6,027,457.73 459,262.85 0.40 -10.75 MWD+SCC(1) 2,122.51 0.79 108.59 2,122.43 2,084.50 -11.52 4.86 6,027,456.95 459,263.89 0.47 -11.52 MWD+SCC(1) 2,217.29 1.13 116.57 2,217.20 2,179.27 -12.15 6.32 6,027,456.32 459,265.34 0.38 -12.15 MWD+SCC(1) 2,313.05 1.16 118.16 2,312.94 2,275.01 -13.03 8.01 6,027,455.43 459,267.03 0.05 -13.03 MWD+SCC(1) 2,406.21 1.12 116.93 2,406.08 2,368.15 -13.89 9.66 6,027,454.56 459,268.67 0.05 -13.89 MWD+SCC(1) 2,505.10 1.13 109.55 2,504.95 2,467.02 -14.65 11.44 6,027,453.79 459,270.45 0.15 -14.65 MWD+SCC(1) 2,585.17 0.96 113.98 2,585.01 2,547.08 -15.19 12.80 6,027,453.24 459,271.80 0.23 -15.19 MWD+SCC(1) 2,677.56 0.93 125.02 2,677.39 2,639.46 -15.93 14.12 6,027,452.49 459,273.12 0.20 -15.93 MWD+SCC(1) 2,792.99 0.79 117.96 2,792.80 2,754.87 -16.84 15.59 6,027,451.57 459,274.58 0.15 -16.84 MWD+SCC(1) 2,888.47 0.98 108.43 2,888.27 2,850.34 -17.41 16.94 6,027,451.00 459,275.94 0.25 -17.41 MWD+SCC(1) 2,984.45 0.86 102.44 2,984.24 2,946.31 -17.82 18.42 6,027,450.57 459,277.42 0.16 -17.82 MWD+SCC(1) 3,079.89 0.92 115.63 3,079.67 3,041.74 -18.31 19.81 6,027,450.08 459,278.80 0.22 -18.31 MWD+SCC(1) 3,181.09 0.92 115.63 3,180.85 3,142.92 -19.01 21.28 6,027,449.37 459,280.27 0.00 -19.01 PROJECTED to TD 4/232012 5:35:02PM Page 3 COMPASS 2003.16 Build 42 Intertek COA/RDE ATM/ BOTTOM HOLE SAMPLE VALIDATION STUDY PIONEER NATURAL RESOURCES WELL: SIKUMI FINAL REPORT Prepared for PIONEER ENERGY By lntertek Westport'Technology Center 6700 Portwest Drive Houston,Texas 77024 (713)479-8400 (Phone) (713) 864-9357 (Fax) www.westportl.com May 8, 2012 Zl Z—�n5 I ntertek SAMPLE VALIDATION TEST WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION / I BOTTOM HOLE SAMPLE VALIDATION TEST TABLE OF CONTENTS LIST OF TABLES ii RESULTS AND DISCUSSION 1 Project No.: WTC-12-002924 I ntertek SAMPLE VALIDATION TEST WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION 4-/1(//44' 1 LIST OF TABLES TABLE 1 SAMPLE COLLECTION DATA 2 TABLE 2 SAMPLE SUMMARY 2 TABLE 3 SINGLE-STAGE SEPARATOR TEST ANALYSIS OF SAMPLE 1005639 3 TABLE 4 COMPOSITIONAL ANALYSIS OF RESERVOIR FLUID OF SAMPLE 1005639 4 TABLE 5 COMPOSITIONAL ANALYSIS OF FLASHED OIL FROM RESERVOIR FLUID OF 5 SAMPLE 1005639 TABLE 6 COMPOSITIONAL ANALYSIS OF FLASHED SOLUTION GAS FROM RESERVOIR FLUID 6 OF SAMPLE 1005639 TABLE 7 COMPOSITIONAL ANALYSIS OF FLASHED SOLUTION GAS FROM RESERVOIR FLUID 7 OF SAMPLE 10056418 TABLE 8 COMPOSITIONAL ANALYSIS OF FLASHED SOLUTION GAS FROM RESERVOIR FLUID 8 OF SAMPLE 10056441 TABLE 9 COMPOSITIONAL ANALYSIS OF FLASHED SOLUTION GAS FROM RESERVOIR FLUID 9 OF SAMPLE 10056446 TABLE 10 SINGLE-STAGE SEPARATOR TEST ANALYSIS OF SAMPLE 10075886 10 TABLE 11 COMPOSITIONAL ANALYSIS OF RESERVOIR FLUID OF SAMPLE 10075886 11 TABLE 12 COMPOSITIONAL ANALYSIS OF FLASHED OIL FROM RESERVOIR FLUID OF 12 SAMPLE 10075886 TABLE 13 COMPOSITIONAL ANALYSIS OF FLASHED SOLUTION GAS FROM RESERVOIR FLUID 13 OF SAMPLE 10075886 TABLE 14 COMPOSITIONAL ANALYSIS OF FLASHED SOLUTION GAS FROM RESERVOIR FLUID 14 OF SAMPLE 10157571 Project No.: WTC-12-002924 �I Intertek SAMPLE VALIDATION TEST WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION 17 RESULTS AND DISCUSSION 'Li f.7/ The sample validation study was conducted on the six bottom hole samples collected from the SIKUMI well of the reservoir. A small portion of each sample was flashed at atmospheric pressure to measure the solution gas-oil ratio from test conditions to stock tank conditions. Trace amounts of drilling mud was collected when the samples were opened. Compositional analyses were subsequently performed on the flashed phases using gas chromatography methods.The molecular weight of the flashed liquid phase was measured using the freezing point technique. Based on these results, four samples contained no liquid hydrocarbons and the remaining two samples yielded trace amounts(<3 cc). The samples with liquid hydrocarbons were mathematically recombined to the measured solution gas-oil ratio. Table 1 summarizes the sample collection and transfer data. Table 2 details the contents of the sample cylinders. For the two samples with liquid hydrocarbons, the main PVT parameters are given in Table 3 and 10. The remaining tables provide the compositional analyses of the recombined fluid, flashed oil at stock tank conditions and flashed gas at standard conditions for each sample. Project No.: WTC-12-002924 1 • I ntertek SAMPLE VALIDATION TEST WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION TABLETS i . SAMPLE COLLECTION DATA 4.7F i t Project File: WTC-12-002924 Operator Name: PIONEER ENERGY Field or Area: Well Location: SIKUMI Sampling Company: Baker Hughes Sampling Date: April 2,2012 Sampling Point: 7463 Sample Description: GAS Sampling Temperature: 202.0 F 94.44 C Sampling Pressure: 3767 psia 25.97 Mpa Reservoir Temperature: - F - C Reservoir Pressure: - psia - Mpa TABLE 2 SAMPLE SUMMARY Sample Cylinder ID: Liquid HC Gas 10056359 X X 10056418 X 10056441 X 10056446 X 10075886 X X 10157571 X X=Present Project No.: WTC-12-002924 2 r ntertek SAMPLE VALIDATION TEST WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION i TABLE 3 ` / a-.v SINGLE-STAGE SEPARATOR TEST ANALYSIS OF SAMPLE 1005639 4../V i < Oil Evolved Oil Gas/Oil Oil Pressure TemperatureVolume Gas Molecular Ratio") Factor(2) Gravity Weight Density(3) psia °F R, B° (air=1.000) g/mol g/cm3 10000 202 0.3075 14.7 70 0.7841 14.7 60 99661.5 0.660 147.8 0.7880 Stock Tank Oil Gravity at Standard Temperature and Pressure=47.9°API Standard Temperature and Pressure(STP): 14.696 psia&60°F (1)Flash Gas/Oil Ratio:Gas at STP per barrel of oil at indicated pressure and temperature. (2)Oil Volume Factor:Volume at specified pressure and temperature per volume of residual oil at STP. (3)Density of oil phase at specified pressure and temperature. (4)Bubble point pressure. Project No.: WTC-12-002924 3 i ntertek SAMPLE VALIDATION TEST ilk li WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION fi p#fwd •_4 TABLE 4 Pi COMPOSITIONAL ANALYSIS OF RESERVOIR FLUID OF SAMPLE 1005639 iiii�,r*�' Component Chemical Mole Mass Calculated Properties Name Symbol Fraction Fraction Nitrogen N2 0.0065 0.0091 Total Sample Carbon Dioxide CO2 0.0422 0.0926 Hydrogen Sulphide H2S 0.0000 0.0000 Molecular Weight 20.06 Methane C1 0.8910 0.7125 Ethane C2 0.0249 0.0373 Propane C3 0.0100 0.0219 C6.Fraction i-Butane i-C4 0.0014 0.0040 n-Butane n-C4 0.0036 0.0104 Molecular Weight 116.52 i-Pentane i-05 0.0012 0.0043 Mole Fraction 0.0175 n-Pentane n-05 0.0018 0.0063 Density(g/cc) 0.7579 Hexanes C6 0.0043 0.0182 Heptanes C7 0.0051 0.0240 C7+Fraction Octanes C8 0.0023 0.0122 Nonanes C9 0.0015 0.0088 Molecular Weight 127.25 Decanes C10 0.0008 0.0054 Mole Fraction 0.0126 Undecanes C11 0.0007 0.0051 Density(g/cc) 0.7759 Dodecanes C12 0.0006 0.0045 Tridecanes C13 0.0005 0.0041 C12+Fraction Tetradecanes C14 0.0004 0.0036 Pentadecanes C15 0.0003 0.0031 Molecular Weight 203.02 Hexadecanes C16 0.0002 0.0025 Mole Fraction 0.0028 Heptadecanes C17 0.0002 0.0018 Density(g/cc) 0.8205 Octadecanes C18 0.0001 0.0015 Nonadecanes C19 0.0001 0.0015 C30+Fraction Eicosanes C20 0.0001 0.0008 Heneicosanes C21 0.0001 0.0008 Molecular Weight 138.92 I Docosanes C22 0.0000 0.0004 Mole Fraction 0.0002 Tricosanes C23 0.0000 0.0004 Density(g/cc) 0.7144 Tetracosanes C24 0.0000 0.0002 Pentacosanes C25 0.0000 0.0003 C36+Fraction Hexacosanes C26 0.0000 0.0001 Heptacosanes C27 0.0000 0.0004 Molecular Weight 118.51 Octacosanes C28 0.0000 0.0007 Mole Fraction 0.0002 Nonacosanes C29 0.0000 0.0001 Density(g/cc) 0.6782 Tricontanes C30 0.0000 0.0000 Hentriacontanes C31 0.0000 0.0000 Dotriacontanes C32 0.0000 0.0000 Recombination Parameters Tritriacontanes C33 0.0000 0.0001 Tetratriacontanes C34 0.0000 0.0000 Gas-Oil Ratio(cc/cc) 17749.79 Pentatriacontanes C35 0.0000 0.0001 Dead Oil Density(g/cc) 0.7880 Hexatriacontanes plus C36+ 0.0002 0.0010 Dead Oil MW(g/mol) 147.76 1.0000 1.0000 Physical Properties calculated based on GPA 2145-00 physical constants Project No.: WTC-12-002924 4 • I n to rte k SAMPLE VALIDATION TEST WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION r. TABLE 5 /y//".. , COMPOSITIONAL ANALYSIS OF FLASHED OIL FROM RESERVOIR FLUID OF SAMPLE 1005639 Component Chemical Mole Mass Calculated Properties Name Symbol Fraction Fraction Nitrogen N2 0.0000 0.0000 Total Sample Carbon Dioxide CO2 0.0000 0.0000 Hydrogen Sulphide H2S 0.0000 0.0000 Molecular Weight 147.76 Methane C1 0.0000 0.0000 Ethane C2 0.0009 0.0002 Propane C3 0.0014 0.0004 C6+Fraction i-Butane i-C4 0.0006 0.0002 n-Butane n-C4 0.0027 0.0011 Molecular Weight 148.75 i-Pentane i-05 0.0021 0.0010 Mole Fraction 0.9886 n-Pentane n-05 0.0036 0.0018 Density(g/cc) 0.7893 Hexanes C6 0.1865 0.1060 Heptanes C7 0.0289 0.0183 C7+Fraction Octanes C8 0.0703 0.0504 Nonanes C9 0.0996 0.0816 Molecular Weight 163.81 Decanes C10 0.1134 0.1028 Mole Fraction 0.7981 Undecanes C11 0.0977 0.0972 Density(g/cc) 0.8039 Dodecanes C12 0.0797 0.0869 Tridecanes C13 0.0671 0.0794 C12+Fraction Tetradecanes C14 0.0540 0.0695 Pentadecanes C15 0.0421 0.0587 Molecular Weight 203.02 Hexadecanes C16 0.0316 0.0475 Mole Fraction 0.3922 Heptadecanes C17 0.0216 0.0346 Density(g/cc) 0.8264 Octadecanes C18 0.0170 0.0289 Nonadecanes C19 0.0159 0.0282 C304.Fraction Eicosanes C20 0.0084 0.0157 Heneicosanes C21 0.0080 0.0157 Molecular Weight 138.92 Docosanes C22 0.0037 0.0076 Mole Fraction 0.0258 Tricosanes C23 0.0039 0.0083 Density(g/cc) 0.7144 Tetracosanes C24 0.0018 0.0040 Pentacosanes C25 0.0026 0.0060 C36+Fraction Hexacosanes C26 0.0009 0.0022 Heptacosanes C27 0.0030 0.0076 Molecular Weight 118.51 1 Octacosanes C28 0.0048 0.0125 Mole Fraction 0.0242 Nonacosanes C29 0.0005 0.0015 Density(g/cc) 0.6782 Tricontanes C30 0.0001 0.0004 Hentriacontanes C31 0.0000 0.0001 Dotriacontanes C32 0.0001 0.0004 Tritriacontanes C33 0.0005 0.0016 Tetratriacontanes C34 0.0000 0.0001 Pentatriacontanes C35 0.0006 0.0021 Hexatriacontanes plus C36+ 0.0242 0.0194 1.0000 1.0000 Physical Properties calculated based on GPA 2145-00 physical constants Project No.: WTC-12-002924 5 I= SAMPLE VALIDATION TEST It`) WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION 04/c/ / TABLE 6 ��/r COMPOSITIONAL ANALYSIS OF FLASHED SOLUTION GAS FROM RESERVOIR FLUID I v//f i OF SAMPLE 1005639 f� Component Chemical Mole Fraction Liquid Volume Name Symbol As Analyzed I Acid Gas Free STB/MMscf I mL/m3 Nitrogen N2 0.0066 0.0069 Carbon Dioxide CO2 0.0425 0.0000 Hydrogen Sulphide H2S 0.0000 • 0.0000 Methane C1 0.8978 0.9376 Ethane C2 0.0250 0.0262 Propane C3 0.0100 0.0105 6.550 36.775 i-Butane i-C4 0.0014 0.0014 1.071 6.013 n-Butane n-C4 0.0036 0.0038 2.693 15.122 i-Pentane i-05 0.0012 0.0012 1.026 5.759 n-Pentane n-05 0.0017 0.0018 1.496 8.397 Hexanes C6 0.0030 0.0031 2.899 16.276 Heptanes C7 0.0048 0.0050 5.201 29.200 Octanes C8 0.0017 0.0018 2.114 11.872 Nonanes C9 0.0007 0.0008 0.962 5.402 Decanes C10 0.0000 0.0000 0.000 0.000 Undecane C11 0.0000 0.0000 0.000 0.000 Dodecanes Plus C12+ 0.0000 0.0000 0.000 0.000 Total 1.0000 1.0000 24.012 134.816 Propanes Plus C3+ 0.0281 0.0294 24.012 134.816 Butanes Plus C4+ 0.0181 0.0189 17.462 98.041 Pentanes Plus C5+ 0.0167 0.0174 13.698 76.906 Calculated Gas Properties @ Standard Conditions I Calculated Pseudocritical Properties Molecular Weight 19.14 kg/kmol 19.14 lb/lb-mol Ppc 680.4 psia 4.69 MPa Specific Gravity 0.6608(Air= 1) 16608(Air= 1) Tpc 369.3 R 205.2 K MW of C7+ 101.15 kg/kmol 101.15 Ib/ibmol Ppc* 668.9 psia 4.61 MPa Density of C7+ 0.7317 g/cc 731.7 kg/m3 Tpc* 363.1 R 201.7 K Calculated Gross Heating Value @ Standard Conditions (Calculated Net Heating Value @ Standard Conditions Dry 1,058.9 Btu/scf 39.53 MJ/m3 Dry 956.7 Btu/scf 35.71 MJ/m3 Wet 1,040.5 Btu/scf 38.84 MJ/m3 Wet 940.1 Btu/scf 35.09 MJ/m3 Standard Conditions: 60 F(288.7 K)@ 14.696 psia(0.101325 MPa) Project No.: WTC-12-002924 6 ell= IIN: SAMPLE VALIDATION TEST WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION Gulp" TABLE 7 f�9 COMPOSITIONAL ANALYSIS OF FLASHED SOLUTION GAS FROM RESERVOIR FLUID 'r/! OF SAMPLE 10056418 Component Chemical Mole Fraction Liquid Volume Name Symbol As Analyzed I Acid Gas Free STB/MMscf j mL/m3 Nitrogen N2 0.0065 0.0068 Carbon Dioxide CO2 0.0425 0.0000 Hydrogen Sulphide H2S 0.0000 0.0000 Methane C1 0.9013 0.9412 Ethane C2 0.0248 0.0258 Propane C3 0.0096 0.0100 6.236 35.015 i-Butane i-C4 0.0013 0.0014 1.017 5.708 n-Butane n-C4 0.0035 0.0036 2.589 14.534 i-Pentane i-05 0.0011 0.0012 0.974 5.466 n-Pentane n-05 0.0016 0.0017 1.401 7.866 Hexanes C6 0.0023 0.0024 2.265 12.714 Heptanes C7 0.0036 0.0038 3.942 22.130 Octanes C8 0.0016 0.0016 1.908 10.712 Nonanes C9 0.0005 0.0005 0.641 3.601 Decanes C10 0.0000 0.0000 0.000 0.000 Undecane C11 0.0000 0.0000 0.000 0.000 Dodecanes Plus C12+ 0.0000 0.0000 0.000 0.000 Total 1.0000 1.0000 20.972 117.747 Propanes Plus C3+ 0.0250 0.0262 20.972 117.747 Butanes Plus C4+ 0.0155 0.0162 14.735 82.732 Pentanes Plus C5+ 0.0142 0.0148 11.130 62.490 Calculated Gas Properties @ Standard Conditions I Calculated Pseudocritical Properties Molecular Weight 18.92 kg/kmol 18.92 lb/lb-mol Ppc 681.1 psia 4.70 MPa Specific Gravity 0.6533 (Air=1) x.6533 (Air= 1) Tpc 367.5 R 204.2 K MW of C7+ 101.18 kg/kmol 101.18 lb/lbmol Ppc* 669.5 psia 4.62 MPa Density of C7+ 0.7320 g/cc 732.0 kg/m3 Tpc* 361.3 R 200.7 K Calculated Gross Heating Value @ Standard Conditions Calculated Net Heating Value @ Standard Conditions Dry 1,047.7 Btu/scf 39.11 MJ/m3 Dry 946.2 Btu/scf 35.32 MJ/m3 Wet 1,029.5 Btu/scf 38.43 MJ/m3 Wet 929.7 Btu/scf 34.70 MJ/m3 Standard Conditions: 60 F(288.7 K)@ 14.696 psia(0.101325 MPa) Project No.: WTC-12-002924 7 • Intertek SAMPLE VALIDATION TESTvit WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION 6614/ �/.. TABLE 8 4Old COMPOSITIONAL ANALYSIS OF FLASHED SOLUTION GAS FROM RESERVOIR FLUID OF SAMPLE 10056441 /Z/ Component Chemical Mole Fraction Liquid Volume Name Symbol As Analyzed I Acid Gas Free STB/MMscf I mL/m3 Nitrogen N2 0.0064 I 0.0067 Carbon Dioxide CO2 0.0417 0.0000 Hydrogen Sulphide H2S 0.0000 0.0000 Methane C1 0.8976 0.9366 Ethane C2 0.0246 0.0257 Propane C3 0.0100 0.0104 6.511 36.555 i-Butane i-C4 0.0014 0.0014 1.055 5.926 n-Butane n-C4 0.0036 0.0038 2.716 15.248 i-Pentane i-05 0.0012 0.0013 1.061 5.954 n-Pentane n-05 0.0018 0.0019 1.573 8.831 Hexanes C6 0.0032 0.0033 3.133 17.592 Heptanes C7 0.0054 0.0057 5.945 33.380 Octanes C8 0.0022 0.0023 2.673 15.010 Nonanes C9 0.0008 0.0009 1.096 6.152 Decanes C10 0.0000 0.0000 0.000 0.000 Undecane C11 0.0000 0.0000 0.000 0.000 Dodecanes Plus C12+ 0.0000 0.0000 0.000 0.000 Total 1.0000 1.0000 25.763 144.648 Propanes Plus C3+ 0.0297 0.0310 25.763 144.648 Butanes Plus C4+ 0.0197 0.0206 19.253 108.094 Pentanes Plus C5+ 0.0183 0.0191 15.481 86.920 Calculated Gas Properties @ Standard Conditions I Calculated Pseudocritical Properties Molecular Weight 19.24 kg/kmol 19.24 Ib/lb-mol Ppc 679.7 psia 4.69 MPa Specific Gravity 0.6642(Air= 1) 16642(Air= 1) Tpc 370.1 R 205.6 K MW of C7+ 101.29 kg/kmol 101.291b/lbmol Ppc* 668.4 psia 4.61 MPa Density of C7+ 0.7321 g/cc 732.1 kg/m3 Tpc* 364.0 R 202.2 K Calculated Gross Heating Value @ Standard Conditions Calculated Net Heating Value @ Standard Conditions Dry 1,066.7 Btu/scf 39.82 MJ/m3 Dry 963.9 Btu/scf 35.98 MJ/m3 Wet 1,048.1 Btu/scf 39.12 MJ/m3 Wet 947.1 Btu/scf 35.35 MJ/m3 Standard Conditions: 60 F(288.7 K)@ 14.696 psia(0.101325 MPa) Project No.:WTC-12-002924 8 Intertek SAMPLE VALIDATION TEST VI WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION TABLE 9 ' COMPOSITIONAL ANALYSIS OF FLASHED SOLUTION GAS FROM RESERVOIR FLUID �C OF SAMPLE 10056446 �/� 'l Component Chemical Mole Fraction Liquid Volume Name Symbol As Analyzed I Acid Gas Free STB/MMscf mL/m3 Nitrogen N2 0.0071 0.0074 Carbon Dioxide CO2 0.0418 0.0000 Hydrogen Sulphide H2S 0.0000 0.0000 Methane C1 0.8976 0.9367 Ethane C2 0.0252 0.0263 Propane C3 0.0099 0.0104 6.485 36.408 i-Butane i-C4 0.0014 0.0014 1.071 6.013 n-Butane n-C4 0.0036 0.0037 2.686 15.080 i-Pentane i-05 0.0012 0.0013 1.069 6.003 n-Pentane n-05 0.0018 0.0019 1.556 8.735 Hexanes C6 0.0031 0.0032 2.977 16.715 Heptanes C7 0.0049 0.0051 5.365 30.122 Octanes C8 0.0017 0.0018 2.114 11.872 Nonanes C9 0.0007 0.0008 0.962 5.402 Decanes C10 0.0000 0.0000 0.000 0.000 Undecane C11 0.0000 0.0000 0.000 0.000 Dodecanes Plus C12+ 0.0000 0.0000 0.000 0.000 Total 1.0000 1.0000 24.285 136.349 Propanes Plus C3+ 0.0284 0.0296 24.285 136.349 Butanes Plus C4+ 0.0184 0.0192 17.801 99.941 Pentanes Plus C5+ 0.0170 0.0178 14.044 78.849 _Calculated Gas Properties @ Standard Conditions I Calculated Pseudocritical Properties Molecular Weight 19.15 kg/kmol 19.15 lb/lb-mol Ppc 680.0 psia 4.69 MPa Specific Gravity 0.6611 (Air= 1) 16611 (Air= 1) Tpc 369.3 R 205.2 K MW of C7+ 101.05 kg/kmol 101.05 Ib/ibmol Ppc* 668.7 psia 4.61 MPa Density of C7+ 0.7315 g/cc 731.5 kg/m3 Tpc* 363.2 R 201.8 K Calculated Gross Heating Value @ Standard Conditions (Calculated Net Heating Value @ Standard Conditions Dry 1,060.4 Btu/scf 39.58 MJ/m3 Dry 958.0 Btu/scf 35.76 MJ/m3 Wet 1,041.9 Btu/scf 38.89 MJ/m3 Wet 941.3 Btu/scf 35.14 MJ/m3 Standard Conditions: 60 F(288.7 K)@ 14.696 psia(0.101325 MPa) Project No.:WTC-12-002924 9 Intertek SAMPLE VALIDATION TEST WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION 41/ TABLE 10 /40� SINGLE-STAGE SEPARATOR TEST ANALYSIS OF SAMPLE 10075886 4/ Gas/Oil Oil Evolved Oil Oil Pressure Temperature (1) Volume Gas Molecular (3) Ratio (Z) Density Factor Gravity Weight psia °F Rs B° (air=1.000) g/mol g/cm3 10000 202 0.3243 14.7 70 0.7847 14.7 60 98718.1 0.659 142.5 0.7886 Stock Tank Oil Gravity at Standard Temperature and Pressure=47.8°API Standard Temperature and Pressure(STP): 14.696 psia&60°F (1)Flash Gas/Oil Ratio :Gas at STP per barrel of oil at indicated pressure and temperature. (2)Oil Volume Factor:Volume at specified pressure and temperature per volume of residual oil at STP. (3)Density of oil phase at specified pressure and temperature. (4)Bubble point pressure. Project No.:WTC-12-002924 10 Intertek SAMPLE VALIDATION TEST ili WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION �.r( I�pt`,', TABLE 11 COMPOSITIONAL ANALYSIS OF RESERVOIR FLUID OF SAMPLE 10075886 t.ji,"/;, 4 l';'' Component Chemical Mole Mass Calculated Properties , r= Name Symbol Fraction Fraction Nitrogen N2 0.0061 0.0086 Total Sample I Carbon Dioxide CO2 0.0421 0.0925 Hydrogen Sulphide H2S 0.0000 0.0000 Molecular Weight 20.04 Methane C1 0.8911 0.7135 Ethane C2 0.0251 0.0377 Propane C3 0.0099 0.0218 C6+Fraction i-Butane i-C4 0.0013 0.0039 n-Butane n-C4 0.0037 0.0107 Molecular Weight 114.81 i-Pentane i-05 0.0012 0.0044 Mole Fraction 0.0175 n-Pentane n-05 0.0018 0.0065 Density(g/cc) 0.7571 Hexanes C6 0.0031 0.0131 1 Heptanes C7 0.0048 0.0226 C7+Fraction Octanes C8 0.0019 0.0098 Nonanes C9 0.0021 0.0127 Molecular Weight 121.48 Decanes C10 0.0019 0.0128 Mole Fraction 0.0140 Undecanes C11 0.0014 0.0104 Density(g/cc) 0.7693 Dodecanes C12 0.0009 0.0073 Tridecanes C13 0.0005 0.0048 C12+Fraction 1 Tetradecanes C14 0.0003 0.0030 Pentadecanes C15 0.0002 0.0017 Molecular Weight 165.63 Hexadecanes C16 0.0001 0.0007 Mole Fraction 0.0023 Heptadecanes C17 0.0000 0.0005 Density(g/cc) 0.8041 Octadecanes C18 0.0000 0.0003 Nonadecanes C19 0.0000 0.0001 C30+Fraction Eicosanes C20 0.0000 0.0001 Heneicosanes C21 0.0000 0.0003 Molecular Weight 0.00 Docosanes C22 0.0000 0.0001 Mole Fraction 0.0002 Tricosanes C23 0.0000 0.0001 Density(g/cc) 0.0001 Tetracosanes C24 0.0000 0.0000 1 Pentacosanes C25 0.0000 0.0001 C36+Fraction Hexacosanes C26 0.0000 0.0000 Heptacosanes C27 0.0000 0.0000 Molecular Weight 0.00 Octacosanes C28 0.0000 0.0000 Mole Fraction 0.0002 Nonacosanes C29 0.0000 0.0000 Density(g/cc) 0.0001 Tricontanes C30 0.0000 0.0000 Hentriacontanes C31 0.0000 0.0000 Dotriacontanes C32 0.0000 0.0000 Recombination Parameters Tritriacontanes C33 0.0000 0.0000 Tetratriacontanes C34 0.0000 0.0000 Gas-Oil Ratio(cc/cc) 17581.76 Pentatriacontanes C35 0.0000 0.0000 Dead Oil Density(g/cc) 0.7886 Hexatriacontanes plus C36+ 0.0002 0.0000 Dead Oil MW(g/mol) 142.49 1.0000 1.0000 Physical Properties calculated based on GPA 2145-00 physical constants Project No.:WTC-12-002924 11 I n to rte k SAMPLE VALIDATION TEST WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION TABLE 12 # 1 ' `e.?`ro, COMPOSITIONAL ANALYSIS OF FLASHED OIL FROM RESERVOIR FLUID OF SAMPLE 10075886 ��P/ :7,,Iia. �4 Component Chemical Mole Mass Calculated Properties Name Symbol Fraction Fraction Nitrogen N2 0.0000 0.0000 Total Sample Carbon Dioxide CO2 0.0000 0.0000 Hydrogen Sulphide H2S 0.0000 0.0000 Molecular Weight 142.49 Methane C1 0.0000 0.0000 Ethane C2 0.0000 0.0000 Propane C3 0.0000 0.0000 C6+Fraction i-Butane i-C4 0.0000 0.0000 n-Butane n-C4 0.0000 0.0000 Molecular Weight 142.49 i-Pentane i-05 0.0000 0.0000 Mole Fraction 1.0000 n-Pentane n-05 0.0000 0.0000 Density(g/cc) 0.7886 Hexanes C6 0.0000 0.0000 Heptanes C7 0.0013 0.0008 C7+Fraction Octanes C8 0.0428 0.0321 Nonanes C9 0.1978 0.1680 Molecular Weight 142.49 Decanes C10 0.2581 0.2427 Mole Fraction 1.0000 Undecanes C11 0.1908 0.1969 Density(g/cc) 0.7886 1 Dodecanes C12 0.1220 0.1378 Tridecanes C13 0.0741 0.0910 C12+Fraction Tetradecanes C14 0.0424 0.0565 Pentadecanes C15 0.0217 0.0313 Molecular Weight 165.63 Hexadecanes C16 0.0080 0.0125 Mole Fraction 0.3092 Heptadecanes C17 0.0055 0.0092 Density(g/cc) 0.8126 Octadecanes C18 0.0032 0.0057 Nonadecanes C19 0.0014 0.0026 Cao+Fraction Eicosanes C20 0.0006 0.0011 Heneicosanes C21 0.0023 0.0048 Molecular Weight 0.00 Docosanes C22 0.0005 0.0012 Mole Fraction 0.0250 Tricosanes C23 0.0010 0.0023 Density(g/cc) 0.0001 Tetracosanes C24 0.0003 0.0008 Pentacosanes C25 0.0011 0.0026 C36+Fraction Hexacosanes C26 0.0000 0.0000 Heptacosanes C27 0.0000 0.0000 Molecular Weight 0.00 Octacosanes C28 0.0000 0.0000 Mole Fraction 0.0250 Nonacosanes C29 0.0000 0.0000 Density(g/cc) 0.0001 Tricontanes C30 0.0000 0.0000 Hentriacontanes C31 0.0000 0.0000 Dotriacontanes C32 0.0000 0.0000 Tritriacontanes C33 0.0000 0.0000 Tetratriacontanes C34 0.0000 0.0000 Pentatriacontanes C35 0.0000 0.0000 Hexatriacontanes plus C36+ 0.0250 0.0000 1.0000 1.0000 Physical Properties calculated based on GPA 2145-00 physical constants Project No.:WTC-12-002924 12 CM3SAMPLE VALIDATION TEST WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION CU TABLE 13 1 06 COMPOSITIONAL ANALYSIS OF FLASHED SOLUTION GAS FROM RESERVOIR FLUID • OF SAMPLE 10075886 '7 Component Chemical Mole Fraction Liquid Volume Name Symbol As Analyzed I Acid Gas Free STB/MMscf mL/m3 Nitrogen N2 0.0062 0.0064 Carbon Dioxide CO2 0.0424 0.0000 Hydrogen Sulphide H2S 0.0000 0.0000 Methane C1 0.8981 0.9379 Ethane C2 0.0253 0.0265 Propane C3 0.0100 0.0104 6.524 36.628 i-Butane i-C4 0.0014 0.0014 1.055 5.926 n-Butane n-C4 0.0037 0.0039 2.791 15.668 i-Pentane i-05 0.0012 0.0013 1.069 6.003 n-Pentane n-05 0.0018 0.0019 1.573 8.831 Hexanes C6 0.0031 0.0032 2.987 16.770 Heptanes C7 0.0047 0.0049 5.091 28.585 Octanes C8 0.0015 I 0.0015 1.786 10.030 Nonanes C9 0.0006 0.0006 0.802 4.502 Decanes C10 0.0000 0.0000 0.000 0.000 Undecane C11 0.0000 0.0000 0.000 0.000 Dodecanes Plus C12+ 0.0000 0.0000 0.000 0.000 Total 1.0000 1.0000 23.678 132.942 Propanes Plus C3+ 0.0279 0.0292 23.678 132.942 Butanes Plus C4+ 0.0179 0.0187 17.155 96.314 Pentanes Plus C5+ 0.0166 0.0173 13.308 74.721 Calculated Gas Properties @ Standard Conditions I Calculated Pseudocritical Properties _ Molecular Weight 19.11 kg/kmol 19.11 Ib/lb-mol Ppc 680.6 psia 4.69 MPa Specific Gravity 0.6597(Air=1) ).6597(Air= 1) Tpc 369.2 R 205.1 K MW of C7+ 100.64 kg/kmol 100.64 lb/lbmol Ppc* 669.1 psia 4.61 MPa Density of C7+ 0.7308 g/cc 730.8 kg/m3 Tpc* 363.0 R 201.7 K Calculated Gross Heating Value @ Standard Conditions (Calculated Net Heating Value @ Standard Conditions Dry 1,058.2 Btu/scf 39.50 MJ/m3 Dry 956.0 Btu/scf 35.68 MJ/m3 Wet 1,039.8 Btu/scf 38.81 MJ/m3 Wet 939.4 Btu/scf 35.06 MJ/m3 Standard Conditions: 60 F(288.7 K)@ 14.696 psia(0.101325 MPa) Project No.:WTC-12-002924 13 Intertek SAMPLE VALIDATION TEST lir WTC-12-002924-PIONEER NATURAL RESOURCES-SIKUMI- BOTTOM HOLE SAMPLE VALIDATION cap. ,,,) TABLE 14f414, 41 �/ i COMPOSITIONAL ANALYSIS OF FLASHED SOLUTION GAS FROM RESERVOIR FLUID 'r / OF SAMPLE 10157571 /�A Component Chemical Mole Fraction Liquid Volume `` Name Symbol As Analyzed I Acid Gas Free STB/MMscf I mL/m3 Nitrogen N2 0.0054 0.0057 Carbon Dioxide CO2 0.0417 0.0000 Hydrogen Sulphide H2S 0.0000 0.0000 Methane C1 0.8999 0.9390 Ethane C2 0.0249 0.0260 Propane C3 0.0098 0.0103 6.426 36.078 i-Butane i-C4 0.0014 0.0014 1.071 6.013 n-Butane n-C4 0.0036 0.0037 2.678 15.038 i-Pentane i-05 0.0011 0.0012 0.965 5.418 n-Pentane n-05 0.0017 0.0017 1.435 8.059 Hexanes C6 0.0029 0.0030 2.850 16.002 Heptanes C7 0.0050 0.0052 5.442 30.552 Octanes C8 0.0019 0.0020 2.321 13.032 Nonanes C9 0.0007 0.0008 0.989 5.552 Decanes C10 0.0000 0.0000 0.000 0.000 Undecane C11 0.0000 0.0000 0.000 0.000 Dodecanes Plus C12+ 0.0000 0.0000 0.000 0.000 Total 1.0000 1.0000 24.177 135.744 Propanes Plus C3+ 0.0281 0.0293 24.177 135.744 Butanes Plus C4+ 0.0183 0.0191 17.752 99.666 Pentanes Plus C5+ 0.0169 0.0176 14.002 78.615 Calculated Gas Properties @ Standard Conditions I Calculated Pseudocritical Properties Molecular Weight 19.12 kg/kmol 19.12 lb/lb-mol Ppc 680.2 psia 4.69 MPa Specific Gravity 0.6600(Air= 1) 16600(Air= 1) Tpc 369.4 R 205.2 K MW of C7+ 101.19 kg/kmol 101.19 lb/lbmol Ppc* 668.9 psia 4.61 MPa Density of C7+ 0.7318 g/cc 731.8 kg/m3 Tpc* 363.2 R 201.8 K Calculated Gross Heating Value @ Standard Conditions (Calculated Net Heating Value @ Standard Conditions Dry 1,061.9 Btu/scf 39.64 MJ/m3 Dry 959.4 Btu/scf 35.81 MJ/m3 Wet 1,043.4 Btu/scf 38.95 MJ/m3 Wet 942.7 Btu/scf 35.19 MJ/m3 Standard Conditions: 60 F(288.7 K)@ 14.696 psia(0.101325 MPa) Project No.:WTC-12-002924 14 2,1,b*41:- L PIONEER 4ZLZ33 NATURAL RESOURCES ALASKA Letter of Transmittal Date: May 10, 2012 FROM TO Shannon Koh AOGCC Pioneer Natural Resources Attn: Howard Okland 700 G Street, Suite 600 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 Anchorage, AK 99501 INFORMATION TRANSMITTED n Letter ❑ Maps ❑ Report X Other—CDs, logs ❑ Agreement DETAIL QTY DESCRIPTION Sikumi 1 (API:50-703-20654-0000) Sikumi 1 PB1 (API:50-703-20654-7000) 2 CDs 2 CDs Processed LWD Logs 12 Well Logs See Details on next page We request that all data be treated as confidential information per 20 AAC 25.537(d) Thank you Received by: Date: 6/1\ I Zo 1 2- Please Please sign and return one copy to Pioneer Natural Resources, Inc., ATTN: Shannon Koh 700 G Street, Suite 600, Anchorage, AK 99501 907-343-2193 fax 907-343-2128 phone May 9,2012 QTY DESCRIPTION Sikumi 1 (API:50-703-20654-0000) Sikumi 1 PB1 (API:50-703-20654-7000) 2 CDs Processed LWD Logs Sikumi 1 (API:50-703-20654-0000) ROP, DGR, EWR, ALD, CTN (1:240, 1:600) MD ROP, DGR, EWR, ALD, CTN (1:240, 1:600)TVD .21582 DGR, EWR,ALD, CTN, BAT(1:240, 1:600) MD 12 Well Logs DGR, EWR,ALD, CTN, BAT(1:240, 1:600)TVD Sikumi 1 PB1 (API:50-703-20654-7000) ROP, DGR, EWR(1:240 & 1:600) MD 074253 ROP, DGR, EWR(1:240 & 1:600)TVD • Page 2 PIONEER NATURAL RESOURCES ALASKA Letter of Transmittal SQ � '' 3 v Date: May 3, 2012 FROM TO Shannon Koh AOGCC Pioneer Natural Resources Attn: Howard Okland 700 G Street, Suite 600 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 Anchorage, AK 99501 INFORMATION TRANSMITTED ❑ Letter o Maps ❑ Report X Other- Dry samples o Agreement DETAIL QTY DESCRIPTION Well Name: Sikumi #1 8 Boxes of Well Cutting Samples API: 50-703-20654-0000 Well Name: Sikumi #1 PB1 API: 50-703-20654-0000 Details on following page We request that all data be treated as confidential information per 20 AAC 25.537(d) Thank you Received by: rg DICALet Date: 'f I Please sign and return one copy to Pioneer Natural Resources, Inc., ATTN: Ron Smith 700 G Street, Suite 600, Anchorage, AK 99501 907-343-2193 fax 907-343-4928 phone aha - o68 E E 2 2 0 LtR N. .c o 4 o N o Z C. a a . 0 ri .i .A .i in 'n b CO 0 CO CO CO c r� c 4. -V 00 O. a a C ,n c to 3 to c) C O C O C '''i Y C g °' E O N ' g aim Gl O G Q c N c M c M al 0 aa)0 v= F. ao aD X al X N X E O E o 8 ..i8NtaML%of a 43 ._ J .i J .i rI .-I ,-I r4 - r1 ri .0i W E E "E 'E *E "E 'E E M Y . Y Y . . Y_ . I in Vf to (A to in in in 1.4 !Y ri a CO a f cU cn W M M M M M M M N ro IX _ d -C Z 0) m 'Q C r0 in W to 0 IA O to 0 0 0 0 0 0 0 IA O M O 'i Qp NM .NiN Ori CD NN ulCul OO N0O0 00000 P, OA O m Ln .-i.i N r4 M M et et tri tri t0 t0 N N 00 00 o .-i- in -I iA 4_i 2 to 0. 1.-.. T , I I I I I I gelQ d O in O in O in O O Ob O O O in .= 1 W C O N O N O N u1 O O to O M O N p1 Q O M MN N .i .-\ N M t0 t0 00 00 G\01 W et r1 N N M M1 ,- of LA' Tr n n er LA' t s i.a d a g a * N M * # to * It Z a PIONEER NATURAL RESOURCES ALASKA Letter of Transmittal Date: May 1, 2012 FROM TO Shannon Koh AOGCC Pioneer Natural Resources Attn: Howard Okland 700 G Street, Suite 600 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 Anchorage, AK 99501 INFORMATION TRANSMITTED ❑ Letter ❑ Maps ❑ Report X Other—CDs, logs ❑ Agreement DETAIL QTY DESCRIPTION Nuna 1 (API:50-103-20645-0000) Nuna 1 PB1 (API:50-103-20645-7000) Sikumi 1 (API:50-703-20654-0000) „ gct 2 CDs Sikumi 1 PB1 (API:50-703-20654-7000) 16 Well Logs See Details Below We request that all data be treated as confidential information per 20 AAC 25.537(d) Thank you Received by: ,7LkoDate: vvIci t Please sign and return one copy to Pioneer Natural Resources, Inc., ATTN: Shannon Koh 700 G Street, Suite 600, Anchorage, AK 99501 907-343-2193 fax 907-343-2128 phone May 1,2012 QTY DESCRIPTION Nuna 1 (API:50-103-20645-0000) Sikumi 1 (API:50-703-20654-0000) 2 CDs Final Logs Nuna 1 (API:50-103-20645-0000) 2"TVD Formation Evaluation Log, 2" MD Formation Evaluation Log, 2" MD Drilling Engineering Log, 2" MD Gas Ratio Log, 5" MD Formation Evaluation Log Nuna PB1 (API:50-103-20645-7000) 2"TVD Formation Evaluation Log, 2" MD Formation Evaluation Log, 2" MD Drilling Engineering Log, 2" MD Gas Ratio Log, 5" MD 16 Well Logs Formation Evaluation Log Sikumi 1 (API:50-703-20654-0000) 2"TVD`i-ormation Evaluation Log, 2" MD Formation Evaluation Log, 2" MD Drilling Engineering Log, 2" MTGas Ratio Log, 5" MD Formation Evaluation Log Sikum PB1 (API:50-703-20654-7000) 2" MD rormation Evaluation Log 21 LA (F)`-\ • Page 2 PIONEER Weekly Operations Report Review NATURAL RESOURCES Well Name: 021151 Sikuml ORIG DRILL&COMPLETE Permit#: 212-008 Report End Date:4/7/2012 Depth End:8,500.0 ftKB Operations Summary Finish ND BOP stack and remove wellhead.RIH w/DP and tag upper cement plug at 67'BRT with AOGCC Rep present to witness. RIH with casing cutter and cut 13 3/8"and 20"casing strings at 59'BRT.Remove 13 3/8"cut casing stub.20"conductor cut-off remained in place. Re-cut 20"conductor at 51'BRT and pull stub to complete well abandonment.Continue rigging down and moving equipment off location. Report End Date:4/8/2012 Depth End:8,500.0 ftKB Operations Summary Rig down and prepare to move off Sikumi location. Rig released from well operations on Sikumi 1 at 23:59 hrs on April 7th,2012. 1421/) alter Quay ate Exploration Drilling Superintendent Pioneer Natural Resources Alaska Inc. Page 1/1 Report Printed: 4/16/2012 MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg L}-�I(v DATE: April 6, 2012 P. I. Supervisor -7 FROM: Lou Grimaldi SUBJECT: Wellbore Plug Verification Petroleum Inspector Sikumi #1 PTD 2120080 Pioneer Natural Resources Inc. Exploratory Friday, April 6th, 2012; I witnessed the verification of plug integrity for Plug and Abandonment in Pioneer's exploratory well Sikumi #1. I traveled this morning to the ice pad and witnessed the Drillpipe tag at 67' (RKB) _ of the surface abandonment plug. This was at the anticipated height. I left location at this time. Attachments: none 2012-0406_Wellbore_Plug_Sikumi-11_lg 1 of 1 I rc'' ' r/i1rrr. �Lr3 LI ;LL Lu � ic d SEAN PARNELL,GOVERNOR ri t7��TT�-+�t ALASKA OIL AND GA5 333 W.7th AVENUE,SUITE 100 CONSERVA IO COM IISSIO ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 Dustin Bruce Exploration Project Engineer Pioneer Natural Resources Alaska, Inc. 700 G Street, Suite 600 c> Ii a- o �'` Anchorage, AK 99501 ct Re: Undefined Field, Undefined Pool, Sikumi 1 Sundry Number: 312-118 Dear Mr. Bruce: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed i form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, CVei /a )t-i4V-z---- Cathy . Foerster Chair rd DATED this 3 day of April, 2012. Encl. r • Ilk 0 7§' z./ Z STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 1.Type of Request: »/abandon 0 • Plug for Redrill 0 Perforate New Pool 0 Repair Well 0 Change Approved Program 0 I C.“----4Suspend 0 Plug Perforations 0 Perforate 0 Pull Tubing 0 Time Extension 0 Operations Shutdown 0 Re-enter Susp.Well 0 Stimulate 0 Alter Casing 0 Other: 0 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Pioneer Natural Resourcs Alaska, Inc. Development 0 Exploratory El, 212-008 . 3.Address: 700 G Street, Suite 600 Stratigraphic 0 Service ❑ 6.API Number: Anchorage,AK 99501 50-703-20654-00-00 • 7.If perforating,closest approach in pool(s)opened by this operation to nearest 8.Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes El No ❑r • • SikufYflk 9.Property Designation(Lease Number): 10.Field/Pool(s): MAR � , � 11. �t ADL 355037 • Undefined fv �� R 2 9 � PRESENT WELL CONDITION SUMMARY y ZQ/2 Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): ,) 4,00i J tik(measured): 6,370 6,370 6,370 6,370 N/A ..1'O/'CJ o144 Casing Length Size MD TVD Burst Co Collapse Structural Conductor 110' 16" 158' 158' N/A N/A Surface 1,945' 13-3/8" 1,945' 1,945' 5,020 psi 2,260 psi Intermediate 6,370' 9-5/8" 6,370' 6,370' 5,750 psi 3,090 psi Production Liner Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): Packers and SSSV Type: Packers and SSSV MD(ft)and ND(ft): 12.Attachments: Description Summary of Proposal ❑+ 13.Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ❑ Exploratory CI • Development 0 Service 0 14.Estimated Date for 15.Well Status after proposed work: 3/31/2012 Commencing Operations: Oil /Pp ,ii/Gas 0 WDSPL 0 Suspended❑ 16.Verbal Approval: Date: 4//4/L WINJ❑.;'14 GINJ 0 WAG 0 Abandoned ra11 Commission Representative: ��a.1✓.4L GSTOR 0 SPLUG ❑ /1°1:1)1' sol, 17.I hereby certify that the foregoingAtrue and correct to the best of my knowledge. Contact Dustin Bruce, 343-2173 Printed Na Dustin Br Title Exploration Project Engineer Signature / Phone 343-2173 Date 3/28/2012 Prepared By:Kathy Campoamor,343-2183 f COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: SI Z- I 1 g Plug Integrit' BOP Ted] Mechanical Integrity Test 0 Location Clearance pi.f4.s Other: -!E /4/6 j-;ri-1 „L ra s pe_c,./4Y- s ik d,cc a c(-c,�, Ccvt-o CGS t.) 'Se_r •a1-t.4_ Se' � C-)44✓•.�.K � Cl • Subsequent Form Required: /0 q 0 7 APPROVED BY Approved by:CA" l44 COMMISSIONER THE COMMISSION Date: 4--S - / 2 RBDMS APR 04 2012 zR Form 10 403 Revised 1/2010O I C 1 n 1,4 1Submit in Duplicate f t 7—'7/rL Sikumi #1 Open-hole P&A Procedure Summary 1. Off critical path, wait minimum 24 hrs on 9-5/8" intermediate cement job. Down squeeze 107 bbl, 146 sks (2,000'), Type L, Permafrost cement into 13-3/8"x 9-5/8" annulus,topped with 12 bbl of 9.8 ppg freeze protected brine (200') 2. Drill 8-1/2"hole to TD, CBU conditioning mud for P&A 3. POOH, LD BHA 4. PU and run 2,256' of 3-1/2" 9.3# L-80 TC-II tubing crossed-over to 130' of 7" 26# L-80 BTC-M and liner hanger(300' over-lap). Run to TD. 5. Pump 953 sks, 195 bbl, Premium cement. Set liner hanger and test liner-top packer to 3,500 psi, TOOH. (n/t' C✓ 2 1,,r5 I L_� o t`.11 _ay -4v 1-1__yrs 6. PU casing cutter and cut 9-5/8" casing at 160' rkb 7. PU landing joint, RIH, engage and pull 9-5/8"hanger and casing. 8. PU cement stinger and TIH to 280', pump 4 bbl weighted polymer for base. PU to 260' and pump 22.5 bbl, 110 sks of 15./1-0`Wg enii cement(set plug 100' below and 100' above 9-5/8"cut- off, TOC @— 60' rkb). ;c_ 9. TOOH,ND BOPE and wellhead. 10. PU dry casing cutter, cut 13-3/8"casing and 20" conductor at 50' rkb. TOOH. 11. PU 13-3/8" spear, TIH and retrieve 20"x,13-3/8" cut-off. 12. RDMO Nabors 27-E P/ (4Y Sikumi-#1 P&A Sundry Page 1 of 2 March 28`x',2012 Sikumi #1 P&A Schematic Mud Line HS Cut 13-3/8"casing&20"conductor 5' 6/ below ML(50'rkb) r :f: f Cut 9-5/8"casing @ 160'rkb. O/ Set 200'plug in 9-5/8"(100'inside 9- 9.8 ppg Brine-+ 5/8"casing, 100'above cut) TOC@-60' rkbGVSP _ ti• r 4 13-3/8"surface casing cemented to surface(03/18/12) r 13-3/8"x 9-5/8"annulus down 10.5 ppg drilling fluid :a squeezed from 200'to 2,000' (03/27/12) C c �c a 9-5/8"intermediate casing cemented n to 4,300'(03/26/12) Casing/Tubing Top Bot Item# Item MD (ft) TVD(ft) 1 20"94# H40 Conductor: 19.124" ID(18.936"Drift) 0 158 2 13-3/8"68#L-80 BTC(12.25"ID,12.25"Drift): 16" 0 1,945 3 9-5/8"40#L-80 Hydril 521 (8.835"ID,8.679"Drift): 12-1/4" 0 6,370 � y,Z�O 4 7"26#L-80 BTC-M Liner(6.276"ID,6.151"Drift): 8-1/2" 6,070 6,200 ,` 4 5 3-1/2 9.3#L-80 TC-II(2.992"ID,2.867"Drift) 6,200 8,456 Misc.Well Equipment/Tools Item# Item MD(ft) TVD(ft) 6 ZXP Flex III Liner Hanger/Top Pkr 6,070 6,080 P [ O lV E E RDate: Revision By: Comments 03-26-12 DBB Sikumi P&A Sikumi#1 NATURAL RESOURCES ALASKA Well Schematic Sikumi-#1 P&A Sundry Page 2 of 2 March 28`h,2012 PIONEER NATURAL RESOURCES Pioneer Natural Resources Alaska 700 G Street Suite 600 Anchorage, AK 99501 Sikumi-1 Alaska United States of America P&A Cement Recommendation Prepared for: Mr. Dustin Bruce March 30, 2012 Version: 1 Submitted by: Jeremy Talarovich Halliburton 6900 Arctic Blvd Anchorage, Alaska 99518 907.275.2635 HALLIBURTON Proposal 123456 v.1 HALLIBURTON Halliburton appreciates the opportunity to present this cost estimate and looks forward to being of service to you. Foreword Enclosed is our cost estimate for cementing the casing strings in the referenced well. The information in this cost estimate includes well data, calculations, materials requirements, and cost estimates. This cost estimate is based on information from you the customer, our field personnel, and previous cementing services in the area. The selection and use of non-Halliburton plugs and casing attachments can compromise and may jeopardize the overall objective for effective zonal isolation. Furthermore, Halliburton is not involved in the design, manufacture or use of plugs and casing attachments supplied by other manufacturers and assumes no liability for their installation and operation. For this reason we recommend Halliburton plugs and casing attachments be used when Halliburton performs any zonal isolation operation. Halliburton Energy Services recognizes the importance of meeting society's needs for health, safety, and protection of the environment. It is our intention to proactively work with employees, customers, the public, governments, and others to use natural resources in an environmentally sound manner while protecting the health, safety, and environmental processes while supplying high quality products and services to our customers. We appreciate the opportunity to present this cost estimate for your consideration and we look forward to being of service to you. Our Services for your well will be coordinated through the Service Center listed below. If you require any additional information or additional designs, please feel free to contact myself or our field representative listed below. Prepared and Submitted by: Jeremy Talarovich Cement Account Representative SERVICE CENTER: Deadhorse,AK SERVICE COORDINATORS: Wes Miller/Jeff Helms OPER. ENGINEERS: Phillip Clingman/Jeremy Talarovich PHONE NUMBER: 907.659.2805 Deadhorse Camp 907.275.2630 Engineering Support HALLIBURTON Cementing Best Practices 1. Cement quality and weight: You must choose a cement slurry that is designed to solve the problems specific to each casing string. 2. Waiting time:You must hold the cement slurry in place and under pressure until it reaches its'initial set without disturbing it. A cement slurry is a time-dependent liquid and must be allowed to undergo a hydration reaction to produce a competent cement sheath. A fresh cement slurry can be worked (thickening or pump time)as long as it is in a plastic state and before going through its'transition phase.If the cement slurry is not allowed to transition without being disturbed,it may be subjected to changes in density,dilution,settling,water separation,and gas cutting that may lead to a lack of zonal isolation and possible bridging in the annulus. 3. Pipe movement: Pipe movement may be one of the single most influential factors in mud removal. Reciprocation and/or rotation mechanically breaks up gelled mud and changes the flow patterns in the annulus to improve displacement efficiency. 4. Mud properties(for cementing): Rheology: Plastic Viscosity(PV)< 15 centipoise(cp) Yield Point(YP)< 10 lb/100 ft2 These properties should be reviewed with the Mud Engineer,Drilling Engineer,and Company Representative(s)to ensure no hole problems are created. Gel Strength: The 10-second/10-minute gel strength values should be such that the 10-second and 10-minute readings are close together or flat(i.e.,5/6).The 30-minute reading should be less than 20 lb/100 ft2.Sufficient shear stress may not be achieved on a primary cement job to remove mud left in the hole if the mud were to develop more than 25 lb/100 ft2 of gel strength. Fluid Loss: Decreasing the filtrate loss into a permeable zone enhances the creation of a thin,competent filter cake.A thin,competent filter cake created by a low fluid loss mud system is desirable over a thick,partially gelled filter cake.A mud system created with a low fluid loss will be more easily displaced.The fluid loss value should be< 15 cc's(ideal would be 5 cc's). 5. Circulation: Prior to cementing circulate full hole volume twice,or until well conditioned mud is being returned to the surface. There should be no cutting in the mud returns. An annular velocity of 260 feet per minute is optimum(SPE/IADC 18617),if possible. 6. Flow rate: Turbulent flow is the most desirable flow regime for mud removal. If turbulence cannot be achieved pump at as high a flow rate that can practically and safely be used to create the maximum flow energy. The highest mud removal is achieved when the maximum flow energy is obtained. 7. Pipe Centralization: Cement will take the path of least resistance;therefore,proper centralization is important to help prevent the casing from contacting the borehole wall. A minimum standoff of 70% should be targeted for optimum displacement efficiency. 8. Rat hole: A weighted viscous pill placed in the rat hole prior to cementing will minimize the risk of higher density cement mixing with lower density mud when the well is static. 9. Top and Bottom plugs:A top and bottom plug are recommended to be run on all primary casing jobs.The bottom plug should be run after the spacer and ahead of the first cement slurry. 10. Spacers and flushes:Spacers and/or flushes should be used to prevent contamination between the cement slurry and the drilling fluid.They are also used to clean the wellbore and aid with bonding.To determine the volume,either a minimum of 10 minutes contact time or 1000 ft.of annular fill,whichever is greater,is recommended. HALLIBURTON HALLIBURTON Job Information 7"x 3-1/2"Liner P&A Well Name: Sikumi Well#: 1 9-5/8" Intermediate Casing 0- 6370 ft(MD) Outer Diameter 9.625 in Inner Diameter 8.835 in Linear Weight 40 lbm/ft Casing Grade L-80 8-1/2" Intermediate Liner Hole 6370- 8456 ft(MD) Inner Diameter 8.500 in Job Excess 30% 5" Drill Pipe 0- 6070 ft(MD) Outer Diameter 5.000 in Inner Diameter 4.276 in Linear Weight 19.50 lbm/ft 7" Liner Section 6070- 6200 ft(MD) Outer Diameter 7.000 in Inner Diameter 6.276 in Linear Weight 26 lbm/ft Casing Grade L-80 3-1/2" Liner Section 6200- 8456 ft(MD) Outer Diameter 3.500 in Inner Diameter 2.992 in Linear Weight 9.30 lbm/ft Tubing Grade L-80 The slurry design volumes are based on 30%excess and bringing cement 200'MD above the top of the liner hanger inside and out. The top of the liner is planned to be located at 6070'MD with 300'of lap over the previous casing. The float collar is planned to be located at- 6155'. Cement is planned to be pumped behind the top plug to reach an inside height of 5870'. A frac gradient of 14 ppg at 8456'was used with a max ECD shown through simulation of 12.71 ppg. 5 Calculations 7"x 3-1/2"Liner P&A Spacer: 194.02 ft* 0.2894 ft3/ft * 0% = 56.15 ft3 Total Spacer = 56.15 ft3 = 10.00 bbl Spacer: 1164.12 ft * 0.2894 ft3/ft* 0% = 336.88 ft3 Total Spacer = 336.88 ft3 = 60.00 bbl Cement : (2718.68 ft fill) 332.68 ft * 0.2894 ft3/ft * 0% = 96.27 ft3 130.00 ft* 0.1585 ft3/ft* 0% = 20.60 ft3 170.00ft* 0.3589ft3/ft* 0% = 61.02 ft3 2086.00 ft * 0.3272 ft3/ft* 30% = 887.43 ft3 Tail Cement = 1065.33 ft3 = 189.74 bbl Shoe Joint Volume: (2298.00 ft fill) 2298.00 ft * 0.0488 ft3/ft = 112.20 ft3 = 19.98 bbl Tail plus shoe joint = 1177.53 ft3 = 209.73 bbl Total Tail = 1030 sks Total Pipe Capacity: 6070.00 ft* 0.0997 ft3/ft = 605.33 ft3 130.00 ft* 0.2148 ft3/ft = 27.93 ft3 2256.00 ft* 0.0488 ft3/ft = 110.15 ft3 = 132.41 bbl Displacement Volume to Shoe Joint: Capacity of Pipe- Shoe Joint = 132.41 bbl- 19.98 bbl = 112.42 bbl Job Recommendation 7"x 3-1/2"Liner P&A Fluid Instructions Fluid 1: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal p tY g Fluid Volume: 10 bbl Fluid 2: Water Based Spacer DUAL SPACER Fluid Density: 12.501bm/gal Fluid Volume: 60 bbl Fluid 3: Tail Cement Premium Cement Fluid Weight 15.80 lbm/gal 94 lbm/sk Premium Cement(Cement) Slurry Yield: 1.15 ft3/sk 0.3 % Halad(R)-344 (Low Fluid Loss Control) Total Mixing Fluid: 4.97 Gal/sk 0.3 % Halad(R)-413 (Low Fluid Loss Control) Top of Fluid: 5737.32 ft 0.35 % SCR-100 (Retarder) Calculated Fill: 2718.68 ft 0.1 % CFR-3 (Dispersant) Volume: 210.97 bbl Calculated Sacks: 1030 sks Proposed Sacks: 1030 sks Fluid 4: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 5: Mud Mud Displacement Fluid Density: 10.50 lbm/gal Fluid Volume 101.18 bbl Job Procedure 7"x 3-1/2" Liner P&A Detailed Pumping Schedule Fluid# Fluid Fluid Name Surface Estimated Downhole Type Density Avg Rate Volume lbm/gal bbl/min 1 Spacer Spacer 8.3 5.0 10 bbl Spacer Weighted Spacer 12.5 5.0 60 bbl 3 Cement Tail Cement 15.8 5.0 1030 sks (% 4 Spacer Displacement Fluid 8.3 5.0 10 bbl 5 Mud Displacement Fluid 10.5 5.0 101.18 bbl Engineering Program Results 7"x 3-1/2" Liner P&A Design Parameters Fracture Zone Measured Depth 8456.0 ft Fracture Zone Gradient 0.727 psi/ft Fracture Zone Density 14.00 lb/gal Fracture Zone Pressure 6150 psi Reservoir Measured Depth 8456.0 ft Reservoir Pore Pressure 4568 psi Reservoir Zone Gradient 0.540 psi/ft Reservoir Zone Density 10.40 lb/gal Back Pressure 0 psi Simulator Volume Increment 5.00 bbl Shoe Track Length 2298.0 ft Additional Pressure to Seat Plug 500 psi Eccentricity Enhanced Calculations No Erodibility Enhanced Calculations No Use Coupling Information No Pumping Schedule No. Description Density Rate Volume Duration lb/gal bpm bbl min 1 Mud 10.50 5.00 0.00 0.00 2 Water 8.33 5.00 10.00 2.00 3 Modified Dual Spacer 12.50 5.00 60.00 12.00 4-1 Primary Cement(1.15/4.97) 15.80 5.00 204.13 40.83 4-2 Shutdown 5.00 Top Plug 5 Primary Cement(1.15/4.97) 15.80 5.00 6.92 1.38 6 Water 8.33 5.00 10.00 2.00 7-1 Mud 10.50 5.00 84.26 16.85 7-2 Mud 10.50 2.00 10.00 5.00 Total 385.31 85.06 HALLIBURTON Fluid Rheology - Generalized Herschel Bulkley Fluid Temp. m n TauO Mulnf Speed Dial °F Ibf/(100*ft2) cp rpm Primary Cement 135 0.50 0.50 7.32 78.33 300 130.00 (1.15/4.97)(Class G) _ 200 98.00 100 61.00 6 15.00 3 12.00 78 0.50 0.50 6.99 71.31 300 122.00 200 91.00 100 55.00 60 39.00 30 25.00 6 15.50 3 12.00 Fluid Rheology - Bingham Plastic Fluid Temp. PV YP Speed Dial °F cp Ibf/(100*ft2) rpm Mud 70 25.00 22.00 Water 137 1.00 1.00 Modified Dual Spacer 70 57.00 33.00 10 HALLIBURTON Simulation Volume and Rate Calculations Time Surface Surface Liquid Total Liquid Rate Total Rate Stage In Stage Out Volume In Volume Out In Out min bbl bbl bpm bpm 0.02 2 1 0.08 0.08 5.00 5.00 6.00 3 1 30.00 30.00 5.00 5.00 15.00 4 1 75.00 75.00 5.00 5.00 25.00 4 1 125.00 136.92 5.00 7.34 35.00 4 1 175.00 204.16 5.00 6.37 45.00 4 1 225.00 255.37 5.00 4.72 54.83 4 1 274.13 301.05 5.00 4.64 60.80 5 1 279.00 309.99 5.00 2.39 63.23 7 1 291.13 316.31 5.00 2.46 73.00 7 1 340.00 344.87 5.00 3.00 80.41 7 1 376.00 376.00 2.00 2.00 85.08 7 1 385.31 385.31 0.00 0.00 Horsepower, Pressure, Freefall Time Liquid Pump Surface Surface ECD @ ECD @ Free Fall Volume In Output Pressure Pressure TD Frac Zone Height In Out min bbl hp psi psi lb/gal lb/gal ft 0.02 0.08 66.8 530 0 10.95 10.95 0.0 _ 6.00 30.00 61.1 484 0 10.96 10.96 0.0 15.00 75.00 27.8 212 0 10.96 10.96 0.0 25.00 125.00 1.8 0 0 10.96 10.96 671.0 _ 35.00 175.00 1.8 0 0 11.15 11.15 1641.7 45.00 225.00 1.8 0 0 11.55 11.55 1709.6 54.83 274.13 1.8 0 0 11.92 11.92 1515.6 60.80 279.00 1.8 0 0 11.93 11.93 1744.8 63.23 291.13 1.8 0 0 12.04 12.04 1417.3 73.00 340.00 1.8 0 0 12.33 12.33 274.3 80.41 376.00 21.6 426 0 12.67 12.67 0.0 85.08 385.31 0.0 1119 0 12.35 12.35 0.0 Gas Flow Potential Gas Flow Potential 0.98 at Reservoir Zone Measured Depth 8456.0 ft Based on the above well conditions annular flow should not be a factor.With flow potentials less than 1.0,no special anti-gas migration techniques are required,provided optimum mud displacement techniques are utilized. 11 HALLIBURTON Final Position of Stages Stage Description _ Annular Casing Annular Casing Length Length _ Top MD Top MD ft ft ft ft Mud 4511.9 0.0 Water 194.0 4511.9 Modified Dual Spacer 1164.1 4705.9 Primary Cement(1.15/4.97) 2586.0 2298.0 5870.0 6158.0 Primary Cement(1.15/4.97) 288.0 5870.0 Water 563.0 5307.0 Mud 5307.0 0.0 Time of Events Time Frac Res Stage Starts Pumping Stage Enters Annulus Zone Zone ECD ECD min lb/gal lb/gal _ 0.02 10.95 10.95 2. Water 2.02 10.96 10.96 3. Modified Dual Spacer 14.02 10.96 10.96 4. Primary Cement(1.15/4.97) 25.00 10.96 10.96 2. Water 26.00 10.95 10.95 3. Modified Dual Spacer 35.00 11.15 11.15 4. Primary Cement(1.15/4.97) 59.83 11.89 11.89 5. Primary Cement(1.15/4.97) �. 61.22 11.94 11.94 6. Water 63.22 12.04 12.04 7. Mud 85.05 12.78 12.78 Prior to plug landing 85.07 12.35 12.35 Plug Landed 12 R °a a 4 a- , '' <..71 V >N G) L vi Q. ^ � OG'O ,� , ''':'': i G 1111 II 1 1 0 o cn N N as O C -vi o N nn o0 ,ter hn CI .»v' o N ..c n ,nnoo 41 77 n C ry ti 73 on W � . M 6 U o iri. 1:1': 'g d VO o ,i_ ',=, U a00 Co II tt w —, -Tr au 0 4 •- N • ~ 4` 0 W = O - � A ii ' 1 I I ' 1 1 ' I I 1 I I I ' 00 C CC C C C C C C C O C C C C C C C C C y IN' =..) •�M C N O Ot C in ic N N oo0 00 U 3 I pansezpv Q ;1.., (j» I R o"" U tn .� 'C U E 0 co r '; I.ro 0_, .. .. U E *4c.2., y aoc O., a U U -:3 I) >, w a a 3 b O 88808 (I21qT)a M N O N Ily I~ ly ~ ly 4) < o o tri4 � N - C N CLI N _� o41 ;, - do o 08 N > _� Q V . 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W a - ;•, 4 A. © _aII = (1[13,31.10uI JC11.[su�Q MI`UAL 1J9ctt81e CM Job Information 9-5/8"P&A Well Name: Sikumi Well#: 1 3-1/2" Stinger 0- 260 ft(MD) Outer Diameter 3.500 in Inner Diameter 2.992 in Linear Weight 9.30 lbm/ft 9-5/8" Cut Intermediate 160- 6370 ft(MD) Outer Diameter 9.625 in Inner Diameter 8.835 in Linear Weight 40 lbm/ft Casing Grade L-80 Job Excess 10% 13-3/8" Surface Casing 0- 160 ft(MD) Outer Diameter 13.375 in Inner Diameter 12.415 in Linear Weight 68 lbm/ft Casing Grade L-80 Job Excess 10% The slurry design volumes are based on 10% annular excess and placing a balanced cement plug from 260'to 60'MD. Calculations 9-5/8"P&A Spacer: 60.00 ft *0.8407 ft3/ft * 10% = 55.48 ft3 Total Spacer = 48.07 ft3 = 8.56 bbl Cement : (200.00 ft fill) 100.00 ft* 0.8407 ft3/ft * 10 % = 92.47 ft3 100.00 ft* 0.4257 ft3/ft * 10 % = 46.83 ft3 Tail Cement = 139.30 ft3 = 24.81 bbl Shoe Joint Volume: (0.00 ft fill) 0.00 ft* 0.0 ft3/ft = 0.00 ft3 = 1.77 bbl Tail plus shoe joint = 149.26 ft3 = 26.58 bbl Total Tail = 147 sks Total Pipe Capacity: 6200.00 ft* 0.0997 ft3/ft = 618.29 ft3 2274.00 ft * 0.2148 ft3/ft = 488.52 ft3 = 2.26 bbl Displacement Volume to Shoe Joint: Capacity of Pipe- Shoe Joint = 2.26 bbl- 1.77 bbl = 0.49 bbl Job Recommendation 9-5/8"P&A Fluid Instructions Fluid 1: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 8.56 bbl Fluid 2: Tail Cement Permafrost C Fluid Weight 15.60 lbm/gal Slurry Yield: 0.95 ft3/sk Total Mixing Fluid: 3.75 Gal/sk Top of Fluid: 60 ft Calculated Fill: 200 ft Volume: 24.81 bbl Calculated Sacks: 147 sks Proposed Sacks: 147 sks Fluid 3: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 0.49 bbl Job Procedure 9-5/8" P&A Detailed Pumping Schedule Fluid# Fluid Fluid Name Surface Estimated Downhole Type Density Avg Rate Volume lbm/gal bbl/min 1 Spacer Spacer 8.3 5.0 8.56 bbl 2 Cement Tail Cement 15.6 5.0 147 sks' 3 Spacer Displacement Fluid 8.3 5.0 0.49 bbl 20 Conditions NOTE The cost in this analysis is good for the materials and/or services outlined within and shall be valid for 30 days from the date of this proposal. In order to meet your needs under this proposal with a high quality of service and responsive timing, Halliburton will be allocating limited resources and committing valuable equipment and materials to your area of operations. Accordingly, the discounts reflected in this proposal are available only for materials and services awarded on a first-call basis. Alternate pricing may apply in the event that Halliburton is awarded work on any basis other than as a first-call provider. The unit prices stated in the proposal are based on our current published prices. The projected equipment, personnel, and material needs are only estimates based on information about the work presently available to us. At the time the work is actually performed, conditions then existing may require an increase or decrease in the equipment, personnel, and/or material needs. Charges will be based upon unit prices in effect at the time the work is performed and the amount of equipment,personnel, and/or material actually utilized in the work. Taxes, if any, are not included. Applicable taxes, if any, will be added to the actual invoice. It is understood and agreed between the parties that with the exception of the subject discounts,all services performed and equipment and materials sold are provided subject to Halliburton's General Terms and Conditions contained in our current price list, (which include LIMITATION OF LIABILITY and WARRANTY provisions),and pursuant to the applicable Halliburton Work Order Contract(whether or not executed by you),unless a Master Service and/or Sales Contract applicable to the services,equipment, or materials supplied exists between your company and Halliburton,in which case the negotiated Master Contract shall govern the relationship between the parties. A copy of the latest version of our General Terms and Conditions is available from your Halliburton representative or at: http://www.halliburton.com/terms for your convenient review, and we would appreciate receiving any questions you may have about them. Should your company be interested in negotiating a Master Contract with Halliburton,our Law Department would be pleased to work with you to finalize a mutually agreeable contract. In this connection,it is also understood and agreed that Customer will continue to execute Halliburton usual field work orders and/or tickets customarily required by Halliburton in connection with the furnishing of said services,equipment,and materials. Any terms and conditions contained in purchase orders or other documents issued by the customer shall be of no effect except to confirm the type and quantity of services, equipment, and materials to be supplied to the customer. If customer does not have an approved open account with Halliburton or a mutually executed written contract with Halliburton, which dictates payment terms different than those set forth in this clause, all sums due are payable in cash at the time of performance of services or delivery of equipment,products, or materials. If customer has an approved open account,invoices are payable on the twentieth day after date of invoice. Customer agrees to pay interest on any unpaidbalance from the date payable until paid at the highest lawful contract rate applicable,but never to exceed 18%per annum. In the event Halliburton employs an attorney for collection of any account, customer agrees to pay attorney fees of 20% of the unpaid account, plus all collection and court costs. 21 Page 1 of 3 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Monday, April 02, 2012 4:40 PM To: 'Bruce, Dustin' Subject: RE: Sikumi 1 P&A( PTD 212-008) As we discussed.. you have verbal approval to proceed with Sikumi 1 P &A. Per our last phone call , forego tag of bottom plug but re-test after cement has cured and before setting CIBPin95/8". 7 Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Schwartz, Guy L(DOA) Sent: Monday, April 02, 2012 4:08 PM To: 'Bruce, Dustin' Subject: RE: Sikumi 1 P &A ( PTD 212-008) Dustin, Thanks... ?La�/,�, On a fFen;my- s mail (item 1) I want to make is that the first cement plug at approx. 6000' and should also be tagged as well as pressure tested. Thanks. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Bruce, Dustin [mailto:Dustin.Bruce@pxd.com] Sent: Monday, April 02, 2012 3:38 PM To: Schwartz, Guy L(DOA) Subject: RE: Sikumi 1 P&A ( PTD 212-008) We have finished collecting data, with no further logs planned. We are TOOH now and will move forward with P&A operations by morning. Dustin Bruce Exploration Project Engineer Pioneer Natural Resources Alaska 469.236.1280(Mobile) 907.343.2173 (Office) dustin.bruce@pxd.com From: Schwartz, Guy L(DOA) [mailto:guy.schwartz@alaska.gov] Sent: Monday, April 02, 2012 3:33 PM To: Bruce, Dustin Subject: RE: Sikumi 1 P&A( PTD 212-008) Thanks... Any updates as far as OH logging ? 4/2/2012 Page 2 of 3 Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Bruce, Dustin [mailto:Dustin.Bruce@pxd.com] Sent: Monday, April 02, 2012 3:30 PM To: Schwartz, Guy L (DOA) Subject: FW: Sikumi 1 P &A ( PTD 212-008) Sorry I missed your call. Here you go. Dustin Bruce Exploration Project Engineer Pioneer Natural Resources Alaska 469.236.1280 (Mobile) 907.343.2173 (Office) dustin.bruce@pxd.com From: Bruce, Dustin Sent: Monday, April 02, 2012 11:37 AM To: 'Schwartz, Guy L(DOA)' Cc: Johnson, Vern; Quay, Walter; Lewis, Steve Subject: RE: Sikumi 1 P&A( PTD 212-008) Guy, Please see the P&A cement program attached.Also, I have answered your questions below. Please let me know if you have any additional questions. 1) will you be using a wiper dart to push cement through the 3.5" liner? No. Cement will be left within the 3-112"and--40' into the 7". The drawing and cement volume you propose suggest you are leaving a solid inside the tubing below the liner hanger and also dumping cement on top. The plug must be allowed to set up and then pressure tested.. no requirement for tag. The surface plug is proposed to be placed on top of a gel base.... Can you justify not setting at least one mechanical barrier in the casing? ( ie CIBP)We will place a bridge plug as a base for the surface plug. 2) Arctic grade cement should be used in step 8. Arctic grade cement will be utilized as proposed in the attached program. This should also be tagged to verify its depth before cutting the 13 3/8" and 20". By regulation the cement plug should be 150' in length and the top be 10-30ft below mudline per 20 AAC 25.112(d)(1). It appears that the proposed 60' RKB is 15 ft below mudline which is perfect 3) Casing needs to be cut 5' below mudline. This can be photo documented by showing the length of the cut off sections of pipe at the surface. We will provide photo documentation of all P&A cutoffs and pad cleanup. 4) Provide photo documentation of the ice pad being cleaned up and cleared of any debris after the rig has left. Thank you for your time. 4/2/2012 Page 3 of 3 Dustin Bruce Exploration Project Engineer Pioneer Natural Resources Alaska 469.236.1280 (Mobile) 907.343.2173 (Office) dustin.bruce@pxd.com From: Schwartz, Guy L(DOA) [mailto:guy.schwartz@alaska.gov] Sent: Friday, March 30, 2012 1:12 PM To: Bruce, Dustin Subject: Sikumi 1 P&A( PTD 212-008) Dustin, Here are my questions: 1)will you be using a wiper dart to push cement through the 3.5" liner? The drawing and cement volume you propose suggest you are leaving a solid inside the tubing below the liner hanger and also dumping cement on top. The plug must be allowed to set up and then pressure tested.. no requirement for tag. 2)The surface plug is proposed to be placed on top of a gel base.... Can you justify not setting at least one mechanical barrier in the casing? ( ie CIBP) 3)Arctic grade cement should be used in step 8. This should also be tagged to verify its depth before cutting the 13 3/8"and 20". By regulation the cement plug should be 150' in length and the top be 10-30ft below mudline per 20 AAC 25.112(d)(1). It appears that the proposed 60' RKB is 15 ft below mudline which is perfect. 4) Casing needs to be cut 5' below mudline. This can be photo documented by showing the length of the cut off sections of pipe at the surface. 5) Provide photo documentation of the ice pad being cleaned up and cleared of any debris after the rig has left. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) Statement of Confidentiality: This message may contain information that is privileged or confidential. If you receive this transmission in error, please notify the sender by reply e-mail and delete the message and any attachments. 4/2/2012 1 • STATE OF ALASKA130% 41 ALASKA OIL AND GAS CONSERVATION COMMISSION " APPLICATION FOR SUNDRY APPROVALS ' M . zsi 1 20 AAC 25.280 1.Type of Request: Abandon ❑ Plug for Redriil ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate 0 • Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing ❑ Other: DST 0 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Pioneer Natural Resourcs Alaska, Inc. Development ❑ Exploratory 0 ' 212-008 • 3.Address: 700 G Street,Suite 600 Stratigraphic ❑ Service ❑ 6.API Number: Anchorage,AK 99501 50-703-20654-00-00. 7.If perforating,closest approach in pool(s)opened by this operation to nearest 8.Well Name and Number: property line where ownership or landownership changes: /� ' iii)Spacing Exception Required? Yes ❑ No ❑ I .j (f�/ i) 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL 355037 ' Undefined ' MAR 2 9 ?012 1 11. PRESENT WELL CONDITION SUMMARY Al�,,rka Oil&Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth ND(ft): Plugs(measured): G86 Cln1$, fUunk(treasured): -- Pa r� "''"'�rf/llff 6,370 6,370 6,370 6,370 N/A oC $8/90A Casing Length Size MD TVD Burst Collapse ` Structural _ •t Conductor 110' 16" 158' 158' N/A N/A Surface 1,945' 13-3/8" 1,945' 1,945' 5,020 psi 2,260 psi Intermediate 6,370' 9-5/8" 6,370' 6, I' 5,750 psi 3,090 psi Production Liner Perforation Depth MD(ft): Perforation Depth ND(ft):. Tubing Size: . 4 Tubing Grade: Tubing MD(ft): 7,356-8,356 7,356-8,356 3- 2"`9. / L-80 8,356 Packers and SSSV Type: • '- s a • SSSV .(ft)and ND(ft): Halliburton Champ Packer 'acker @ ,,1 , MD/ND 12.Attachments: Description Summary of Proposal 0 ` 13.Well la =after proposed work: Detailed Operations Program ❑ BOP Sketch 0 =•pi; - 'ry 0 • Development ❑ Service ❑ 14.Estimated Date for ` ((� (� II Status after proposed work: Commencing Operations: 3/31/20]$(` r 0• Gas ❑ WDSPL ❑ Suspended ❑ 16.Verbal JJ Approval: Date )WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: , GSTOR ❑ SPLUG 0 17.I hereby ce ify that the foregoing is tru: an• * t to = t ' y knowledge. Contact Rami Jasser,343-2182 Printed Name Rami Jasser / Title Completion Engineer Signature b, .L/hc343-2182 Date 3/28/2012 Prepared By:Kathy Campoamor,343-2183 COMMISSION USE ONLY Conditions of approval: Notify •mmission so that a representative may witness Sundry Number: 3 t z.„--1 i t1 Plug Integrity 0 BOP Test 0 Mechanical Integrity Test ❑ Location Clearance 0 Other: Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: 17MS APR t Form 10-403 Revised 1/2010 0 4 � F Submit in Duplicate •4•i� Summary Procedure for Sikumi Well Test Operations: 1. Conduct PJSM with all involved personnel on the rig and other personnel who may be impacted or in close proximity to the operations. 2. Make up and run TCP BHA and tubing 3. Record pick up and slack off weights once we pick up and run 500ft of tubing above the TCP BHA in the hole. 4. Continue to run TCP BHA and tubing. 5. Once on depth, record pick up and slack off weight. 6. Rig up surface equipment including valves and surface lines to pump down the tubing. 7. Pressure test all surface lines to 5000 psi using. Bleed pressure down to zero. 8. Set the Champ IV packer by rotating to the right and setting down 25,000 Lbs (per Halliburton Service Tool Specialist). 9. Close BOP (Rams and VBR). 10. Pressure test annulus to 3500 psi. Bleed annulus to 500 psi. Monitor annular pressure. 11. Fire TCP duns. Once the guns fire the Auto Release sub should sever and drop the 'ground to the bottom of the hole. h,oto ' 12. Flow test well for 24 to 36 hours. 13. Bullhead Kill the well by pumping Kill Weight mud down tubing. 14. Bleed annulus pressure. 15. Close annular& open pipe rams. 16. Pick up to open Champ packer annulus bypass and bullhead annulus below packer. 17. Rig down surface equipment&rig up to reverse tubing to choke manifold. 18. Release Champ Packer. 19. Reverse circulate one tubing volume to ensure no gas remained below packer and monitor pressures. 20. Open annular& flow check Sikumi #1 Completion & Test Schematic Well Head: 13-3/8",5K,VetcoGray ID Tree: 4-1/16"Flange,5K,Horizontal Item# Descriptio" (IncOhae) (Inches) Length(ft) Depth(ft) O 1 3 1/2"9.30#TC II Tubing Box x Pin 3.89 2.992 2,002.00 0.00 2 3-1/2"HES'X'Nipple 2.813"profile 3.94 2.813 1.72 2,002.00 ' 20"94#H40 Conductor: 3 3 1/2"9.30#TC II Tubing Box x Pin 3.89 2.992 5,007.00 2,003.72 19.124"ID(18.936"Drift) set @ 135 ft MD/TVD 4 3-1/2"HES"XN'Nipple 2.813"profile with 2.75"No-go 3.94 2.75 1.00 7,010.72 5 3 1/2"9.30#TC II Tubing Box x Pin(2 Joints) 3.89 2.992 80.00 7,011.72 6 Cross Ove, Pup Jnt 31/2 TC-ll box x 3 1/2"IF pin 3.89 2.992 8.00 7,091.72 7 Fas Fil Valve 5.00 2.250 3.60 7,099.72 8 Multi Service Valve 5.00 2.250 4.90 7,103.32 9 Big Jon Jars 5.00 2.250 5.90 7,108.22 10 Champ IV Retrievable Packer 5.65 2.370 8.50 7,114.12 1 11 Cross Ow.3 1/2"IF Box x 3 1/2 TC-II Pin 3,89 2.992 1.00 7,122.62 © 12 3 1/2"9.30#TC II Tubing Box x Pin 3.89 2.992 80.00 7,123.62 13-3/8"68#L-80 BTC 13 Cross 3 1/2"TC II Box x 3 1/2"EUE Pin 3.98 2.992 1.00 7,203.62 (12.25"ID,12.25"Drift): 16" 14 31/2"EUE Box x Pin Ported Fill Disk 4.20 3.000 0.71 7,204.62 set MD/TVD '- @ 3,003 ft 15 Cross Ow3 1/2"EUE Box x 3 1/2"TC II Pin 3.89 2.992 1.00 7,205.33 Cement at 4,374' 16 3 1/2"9.30#TC II Tubing Box x Pin 3.89 2.992 32.00 7,206.33 (500'above 17 Cross Ov€- 3 1/2"TC II Box x 3 1/2"EUE Pin 3.89 2.992 1.00 7,238.33 Torok @18 Auto Release Firing Head,MD IID,With 1.54 No Go 3.78 2.992 6.00 7239.33 4,874') (drops out) . 19 Collar and WLEG Bottom @ xx oo Ft 3.78 2.990 0.67 7,245.33 20 Spacer Gun Sections&Subs 4.63 - 110.00 7,246.00 21 4 5/8"5 SPF Mllennium Guns and Spacers 4.63 , - 1,000.00 7,356.00 22 DCI Sub I Redundant TDF Fire Head and Ported Plug 3.38 - 3.70 8,356.00 End of Assembly 8,359.70 1 0 O : 9-5/8"40#L-80 Hydril 521 (8.835"ID,8.679"Drift): 12-1/4" set @ 6,332 ft MD/TVD C Cement at 6,856' ---► (500' 14 above Sag _ River @ --- 7,356') 18 � �_--._. ////// - Ivishak Flow Test:-570' i • in....,__ max TCP:5 SPF 60° �. • Phasing e" 1 7"26#L-80 BTC-M Liner (6.276"ID,6.151"Drift):8-3/ 4"set @ 8456 ft MD/TVD P ' O NI rnDate: Revision By: Comments t I� 03-08-2012 RJJ Sikumi Completion Equipment Sikumi #1 NATURAL RESOURCES ALASKA Well Schematic PIONEER NATURAL RESOURCES _�kumi BOPE I Flowtest Manifold Diagran1 r� �r • 1502 Lo-Torq Valve .O! g �O 1502 Lo-Torq Valve 2-1/16"HCV to Panel 101 613)(2-1/16"HCV to Panel Swivel a `o ae e� yE c Ev • FOSV o X-Over to 3-;4 TC-ll 3-Y2"9.3#L-80 TC-ll Tubing Sit In slips Rig Floor " 13-5/8"10k psi / Shaffer Annular BX 159 -t — BI ndR Sear 1�1 " 1 111 s =� iihm R Pipe tyams Y 4.1/16"10k HCRw/ `"""'s" BX 169 manual valve �.. `"""D 2-2-1/16"10k Gate valves • _ w/Check Valve II Illi 1111111111011 Cm" 4.1/16"Choke i 2-1116"10k Kill Line Line 1 I J LL r31 ndR/Shea. 4I Y-"' Plpe;euma _ P 9-518"53.5#Ht Casing-0. Ground Level "ii$.i fti- � 13-318"53.5#lit Casing ---v. , 1 , I,a milomminrion.- - `74 g W O _M as R j * Z 0 0 io a 0-p o h 2 Q v Z z z O p W f, U_ J W U-I w < Q LL W S 0 cc Q CK N O Z a 0 a CC O z W En co W Z H i Z OU V l W S P, go T o A a ,h d a 4. .9I/L1 t $ 2/106 ,.91/L 81.1 u_ $ cerci , a Naa I.(' ^� raw 5 3k Lk"' Eghg Za�S_ o UOmo a1 Rg2iff 4:...5 a ;t-¢!H .o 7, rcloai h ? 1/gal w q,F�,'�i azamz .8/t L II g ini2 _ �' aaOw „WI 6Z ..VIE 99 2/1 18 4.1 2/I 66 .91/L 91 - „9l/51 Lit .91/L 9E1 44 A , ' *� t 4 1111 . //14 / J Page 1 of 3 . I- . • Schwartz, Guy L (DOA) From: Jasser, Rami [Rami.Jasser@pxd.com] Sent: Friday, March 30, 2012 9:41 AM To: Schwartz, Guy L (DOA) (TIP C j Cc: Crumrine, Tim; Johnson, Vern c Subject: RE: Sikumi Well Test Sundry-Additional Information 9 .1 Guy, Thank you for your help with this.After further review this morning on the Sikumi Well the decision was made to not do the TCP neither the flow test. At this time I would like to withdraw the sundry application for the flow test (Sundy application#312-117) please. Regards, • J xoti poser Completions Engineer-Alaska Pioneer Natural Resources 907-343-2182 w 907-230-9390 c rami.jasser@pxd.com From: Schwartz, Guy L (DOA) [mailto:guy.schwartz@alaska.gov] Sent: Friday, March 30, 2012 8:35 AM To: Jasser, Rami Cc: Crumrine,Tim; Johnson, Vern Subject: RE: Sikumi Well Test Sundry- Additional Information Rami, As far as the DST procedure elaboration I was looking for your running procedure of the DST tools , tubing, firing guns ect. (Halliburton would supply input not Expo) I need to see how you are testing the surface equipment also. The procedure provided is not detailed enough. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Jasser, Rami [mailto:Rami.Jasser@pxd.com] Sent: Friday, March 30, 2012 7:00 AM To: Schwartz, Guy L (DOA) Cc: Crumrine,Tim; Johnson, Vern Subject: RE: Sikumi Well Test Sundry-Additional Information Guy, The plan is to have 10 ppg Brine in the annulus and LVT in the tubing to achieve ^'500 psi under balance when perforating. Produced oil will be trucked to ENI. I have attached are Haliburton's downhole equipment information you requested. Page 2 of 3 The following explanation was provided to me by Expro and Devin to assist in explaining the functionality of the Emergency Valve+ Remote operation of the valves: Operations of the Devin (API) 10k Flow Head with Dual hydraulics wing valves. 1) The Devin Flow head consist of a double acting mandrel with in the 6.5 Canuster enabling you to both ports isolating the hydraulic wing Valves.The gate valves are fail closed,while the ball valves(master and swab) are fail in position. 2) The system is charged off a N2 over hydraulic requiring 1200 psi to hold open the gate valves. If the pressure drops below 1200 psi on the hydraulic panel the gate valves will close and the master and swab will fail in position.This is a safe position for the master and swab if a pump in (kill) is required. 3) The flow head is a fail-safe close. Meaning, if there is an emergency, our tech operating the panel (Brent Istre—Technician sent up to the Slope from Devin) would simply pull the ESD air line and all valves on the tree would close. To operate the valves (both the ball—master and swab in Flo Head body; and gate—production and kill wings)we pump 1500 PSI to accumulator on panel. When we open and close the valves, pressure bleeds down off of header pressure on the panel. If pressure goes down to 1200 PSI,the pump is triggered and the accumulator pressure back up to 1500 PSI. The process will repeat itself every time a valve is functioned. 4) The Test package is inter-phased via a 125 psi to 5000 psi relay. If a upset at the well test equipment is uncounted the 125 psi is released and the gate valve (wing) is fail closed. 5) The control panel shall be within eyeshot of the Flo Head (that is, on the rig floor, etc.). The panel connects to the Flow Head via hoses. Can you please elaborate on the detailed DST procedure from EXPRO you request? Thank you, Xxtn.i Jriser Completions Engineer-Alaska Pioneer Natural Resources 907-343-2182 w 907-230-9390 c rami.jasser@pxd.com From: Schwartz, Guy L (DOA) [mailto:guy.schwartz@alaska.gov] Sent: Thursday, March 29, 2012 3:54 PM To: Jasser, Rami Cc: Crumrine,Tim; carter.garrett@exprogroup.com Subject: RE: Sikumi Well Test Sundry - Additional Information Rami, Thanks for the site set-up sketches. Questions: What fluid will be in the annulus/tubing. Are you going to perf underbalanced? Need specs on the multi-sevice valve too. (Item 8). Is this an annular operated valve or mechanical? Please forward info on all the downhole DST equipment. (ie Fas Fil Valve, Multi-Service valve..Is this equipment 3/30/2012 Page 3 of 3 r Halliburton or Expro's??) I need your detailed DST procedure from EXpro. What are you going to do with the produced oil? Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Jasser, Rami [mailto:Rami.Jasser@pxd.com] Sent: Thursday, March 29, 2012 3:39 PM To: Schwartz, Guy L(DOA) Cc: Crumrine,Tim; carter.garrett@exprogroup.com Subject: Sikumi Well Test Sundry- Additional Information Guy, Attached is the Sikumi Layout which consists of 3 pages. On page 3 of 3 there is a detailed piping layout. I will be sending you 2 additional items that you requested once I hear back from Expro: 1. Details of the functionality of the Emergency Valve on the Flow Head. 2. Details on the remote operation of the Flow Head Valves. Please let me know if you have any question. Regards, tori R msec Completions Engineer-Alaska Pioneer Natural Resources 907-343-2182 w 907-230-9390 c rami.jasser@pxd.com Statement of Confidentiality: This message may contain information that is privileged or confidential. If you receive this transmission in error, please notify the sender by reply e-mail and delete the message and any attachments. HALLIBURTON Automatic Release To drop perforating guns immediately after they fire Description The Automatic Release (AR) allows the perforating guns to drop immediately after firing. Features and Benefits The AR • Can be used with most mechanical and pressure-actuated firing heads • Allows for immediate release of the guns • Leaves the tubing fully open after the ) guns are released • Eliminates the need to run wireline to shift the guns - • Reduces the chance of the guns sticking Automatic Release because of debris Operation The AR allows for dropping the perforating guns after they are fired.The guns may be j fired either mechanically or by pressure.The releasing device is actuated by the pressure - generated outside the perforating guns upon detonation,so the guns are released as soon as they fire. TUBING-CONVEYED PERFORATING 6 Automatic Release Thread Size and 2 3/8 (60.33) 2 7/8 (73.03) 2 7/8(73.03) 3 1/2 (88.90) 4 1/2 (114.30) Type EUE 8Rd EUE 8Rd High Pressure EUE 8Rd OD box in. (mm) 993.1344 Assembly 993.1041 9931345 993.01350 993.1347 993.01361 Numbers 993.1044 993.1346 993.01360 993.1348 993.01365 Maximum OD 2.88 (73.15) 3.38 (85.85) 3.38 (85.85) 3.78 (96.01) 4.5(114.30) in. (mm) ID After Release 2.125(53.98) 2.72 (69.09) 2.527 (64.186) 2.99 (75.95) 3.67 (93.22) in. (mm) Maximum Operating 20,000 20,000 20,000 20,000 20,000 Pressure (1,380) (1,380) (1,380) (1,380) (1,380) psi (bars) Minimum Operating 1,500 1,500 500 1,500 1,500 Pressure (103) (103) (34) (103) (103) psi (bars) Tensile Strength 49,500 68,000 68,000 68,000 115,000 lb (kg) (22,400) (30,800) (30,800) (30,800) (52,100) Maximum Differential 15,000 10,000 17,000 10,000 9,500 Pressure (1035) (690) (1,170) (690) (655) psi (bars) Overall Length 2.06(0.63) 2.23 (0.68) 2.23 (0.68) 2.23 (0.68) 2.23 (0.68) ft(m) These ratings are guidelines only.For more information, consult your local Halliburton representative. OHALLIBURTON Sales of Halliburton products and services will be in accord solely with the terms and conditions contained in the contract between Halliburton and the customer that is applicable to the sale. TTT-182 ©1994 Halliburton Energy Services Printed in USA HAIBURTON Model 11-D Mechanical Firing Head Description The Model II-D Mechanical Firing Head is a pressure-assisted mechanical firing head.The detonating bar strikes the firing pin,releas- ing the firing piston.Hydrostatic pressure then forces the firing piston into the initiator. • Features and Benefits The Model II-D Firing Head 4 • Cannot be detonated accidentally at surface • Is ideal for use in mud environments where spudding may be necessary � • Can be used in deviated wells I ) Operation 1 The Model II-D Firing Head requires a minimum of 1500 psi hydrostatic pressure in the tubing to actuate the firing head properly. Adding more pressure to the tubing after the V detonating bar has struck the firing pin will not actuate the firing head. I I I I n u 1 1 C Model II-D Mechanical Firing Head TUBING-CONVEYED PERFORATING Model II-D Mechanical Firing Head Thread Size 1.90 (48.26) EUE 2 3/8 (60.33) EUE . Ji: J 10Rdpin x 8Rd pin x and Type 2 3/8 (60.33) 6P 2 7/8 (73.03) 6P in. (mm) Acme box Acme box l Assembly Number 993.01086 993.1045 Maximum OD in. (mm) 2.75 (69.85) 3.375 (85.73) I Minimum ID (No-Go) 1.56 (39.62) 1.56 (39.62) in. (mm)1Maximum Operating Pressure 20,000 (1,380) 20,000 (1,380) psi (bars) a Minimum Operating , Pressure 1,500 (103) 1,500 (103) psi (bars) Determined by Determined by Temperature Rating explosives explosives rt Tensile Strength 140,000 (63,400) 238,000 (107,900) Ib (kg) Burst Pressure Determined by Determined by psi (bars) handling sub handling sub Collapse Pressure Determined by Determined by psi (bars) handling sub handling sub Overall Length 4.58 (1.4) 4.58 (1.4) ft (m) These ratings are guidelines only. For more information,consult your local Halliburton representative. 1 { N 1 r ( Model ll-D Mechanical Firing Head Assembly OHALLIBURTON Sales of Halliburton products and services will be in accord solely with the terms and conditions contained in the contract between Halliburton and the customer that is applicable to the sale. TT-200 ©1994 Halliburton Energy Services Printed in USA it 25 ft Snow Removal & Emergency Access margin 000❑ 000❑ = 0000a000 DO 0 0 ❑❑ w ❑❑ o 0 0 00 O 0 Do .Z1 ❑0 CD 00 3 A 0 — 00 0 0o m 3 m cil CD CA W > 4 Oi " 3 o -414 SZ.- w k o a. n ® CD _. a w `� 3 ® 3 r .--�i 09 ► ® D) 03 -4111-44419-10- ® y C > N C = V ea m C Z CS) ....a5 = 0) A T N A0 =cu ® O U)a 0 ® N m .—. • 000 N c ' c„ 10 -4111--100ft co o v t vmsC. U) Cutting Pit 1 wcnm -o N j� x o' N 3 O <D • p _. y Z ' 7 s C D) XJN Cl) 0 C a f) fD Cl, J ZI rn !T1 -L.,-/' 25 ft Snow Removal & Emergency Access margin 80 ft X 80 ft X 3 ft p.. 0000 0000 0000 000❑ 1710013 A-4. 0000 0000 0000 0000 01701717 1 a CD Ium o 4 I .LJ 73 14100 3 4 149L6 O p < A \ N .19. I0 m 7 o Cn o a Kid`.n� , — — tfD m 7 0 004• x o C OD 3 415Z. n 7 49 L6�'i71 Ifni y I 0 0 0. co u ZZ - ITI 3 0 r 0 0 0 0Fk c. c- r" Lo c'- oitc) u) ....,--• o .p. \ _ o _D x _ 0 X = V cnm c4>< A = ;hi 1.e — 0.l I08 rJ V 2 II 91. • CD N I lu i n y I U I-1 7$a ® �. • CD L. iii-ii. X13 a ® V x 0 -n 030 N. Et; , ® 5 N W I ® IV N Cl) O ® 0 -411 oN n Iv v o. ?. ,�.. m = I-r- Cutting Pit = w w cn m w N x o' rn = '00 -.7-,.... N 3 O O _LJ O _. W A -. O z 3 °' V V al u017 XII 0L A CD Cl) 0 C 0 CD o o r 1 LI i t'f1 yIMO, , "*1 0 _ t A 'A A V/ O = vo > cn to cr cn 6 Sk Cn tt v n c A It 1 r''''' 1' I - Z O NI N .- I \ y • f` �• o cr. N CO 0 0N O X O O CD 0o 3 _ C 2 < C I N N 1 ®,� "iii Q s NI maul NI -i sii v0 s 0 0 * o' m _ cD so at ,N. w U) m ® me m (: jSs o z suc ti 7 m a. • o c os3 CD cn Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Tuesday, March 27, 2012 4:09 PM To: 'Bruce, Dustin' Cc: Quay, Walter Subject: RE: Sikumi#1 Change: 9-5/8" ICP LOT to 12.5 ppge FIT(212-008) A FIT to 12.5 ppg EMW vs a LOT is acceptable assuming this is adequate for any upcoming drilling pressures you may encounter. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Bruce, Dustin [mailto:Dustin.Bruce@pxd.com] Sent: Tuesday, March 27, 2012 2:50 PM To: Schwartz, Guy L(DOA) Cc: Quay, Walter Subject: Sikumi #1 Change: 9-5/8" ICP LOT to 12.5 ppge FIT Guy, As per our conversation, we would like to change the Sikumi#1 planned and permitted LOT for the 9- 5/8" shoe at 6,370' MD/TVD to an 12.5 ppge FIT.We had initially planned the LOT for data collection, but given the drilling hazards associated with the Nechelik fault expected shortly out of the shoe and the tendencies Kingak,we feel a FIT will satisfy our drilling needs. Please let me know if you have any questions.Thank you for your time. Dustin Bruce Exploration Project Engineer Pioneer Natural Resources Alaska 469.236.1280(Mobile) 907.343.2173 (Office) dustin.bruce@pxd.com Statement of Confidentiality: This message may contain information that is privileged or confidential. If you receive this transmission in error, please notify the sender by reply e-mail and delete the message and any attachments. 3/27/2012 PIONEER Weekly Operations Report ReviewCONFIDENT1At NATURAL RESOURCES Well Name: 0,!_21:151 Sikumi ORIG DRILL&COMPLETE Permit#: 212-008 Report End Date:3117/2012 Depth End:3,181.0 ftKB Operations Summary Running 13 3/8"68#L-80 BTC csg. tight hole from 1760'to 1945'.Wash&work pipe to 1945'.Stuck pipe©1945'.Work same w/no success.Prepare rig for cement job. Report End Date:3/18/2012 Depth End:3,181.0 MB OperationsSummary Finished rig up to run 5"drill pipe cementing inner string.RIH CBU&perform surface cementing job. Pump 60 bbls Dual Spacer la 10.5 ppg w/red dye followed w/300 bbls 405 sacks Permafrost Lead Cement®11.1 Red Dye(4)surface recovered 200 bbls return till shut down after observing red dye in returns.Swap over&Pump Premiam Tail Cement(2%)Calcium Chloride Pellets(Accelerator)&(2%)CFR-2 Dispersant 15.8#&pump 52 bbls 245 sacks.Drop drill pipe wiper plug&chase w/10 bbls water.Followed w/23 bbls 9.6 ppg.mud w/rig pump.Bump plug on calculated strokes.Final circ.pressure @ 550 psi.Pressured to 1100 psi&hold 2 mins.Bled pressure&floats held.(NOTE) lost approximately 195 bbls returns thru out cement job.Had no returns thru Tail Cement. Rlg down&POH. Blow down&rig down. Report End Date:3119/2012 Depth End:3,181.0 ftKB Operations Summary Pull out of hole w/5"inner string.Rig up for top cement Job -Samples taken WI 1"pipe to 112'rotary measurement.Verify cement at 112'RKB. -.Cement top job 30 bbls 40 sacks 11.1 ppg cement to surface. -Nipple down Diverter system.Setting emergency slips. -AOGCC Rep.Lou Grimaldi was on location at 14:00 hrs.and waived witness of upcoming top job.Samples were obtained. NOTE:AOGCC was given 48 hrs.notice for upcoming BOP test at 08:00 hrs.on 3/15/2012. Report End Date:3/20/2012 Depth End:3,181.0 ftKB Operations Summary Finish dressing 133/8"csg.stump.Nipple up well head&ROPE.Shell test BOP to 2500 psi.PU 5"DP from pipeshed. Report End Date:3/21/2012 Depth End:3,181.0 ftKB Operations Summary Finish picking up102 jts.5"drill pipe&stand in derrick.Test ROPE per AOGCC permit to drill.Test annular preventer 250 low-2500 psi high.Test remaining BOPE 250-4500 psi.Test gas detectors PVT-flow alarms all choke valves chokes floor safety valves. Koomey start pressure 3000 psi.1580 draw down psi 25 sec from 200 psi build 76 sec to 3000 psi build 12 bottles nitrogen(2550 psi.average.Upper IBOP failed.(NOTE)ROPE test witnessed by Lou Grimaldi AOGCC.Lay down test tool blow down choke top drive&kill line.Make up BHA&test MWD. Report End Date:3/22/2012 Depth End:3,181.0 ftKB Operations Summary RIH w/BHA#3 test csg.2500 psi OK clean out shoe track&20'open hole.CBU run FIT to 12.5 ppg.Cleaning out from 1965'MD to 2600'MD. Report End Date:3/23/2012 Depth End:4,050.0 ftKB Operations Summary Cleaned out to 3,181',apparent open hole side tracked at 2,100'.CBU Wiper trip&survey to 13 3/8"shoe 1 1,945'MD.Drlg.from 3,181'to 4,050'.MD. • ti /9-1e/0-- Walter 1'/0--Walter Quay Dab Exploration Drilling Superintendent Pioneer Natural Resources Alaska Inc. Page 1/1 Report Printed: 3/28/2012 ( f � � r r � n ri lr r Ga ( G, ''� ti �N SEAN PARNELL,GOVERNOR - y 6 p i 4[f ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION ANCHORAGE,ALASKA 99501-3539 d{ PHONE (907)279-1433 FAX (907)276-7542 Vern Johnson Exploration Project Manager _ 00 Pioneer Natural Resources Alaska, Inc. - 700 G Street, Suite 600 Anchorage, AK 99501 Re: Undefined Field, Undefined Pool, Sikumi 1 Sundry Number: 312-106 Dear Mr. Johnson: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy . Foerster Chair DATED this ZZ day of March, 2012. Encl. e i , Rdt ' Ey- ....,,, , STATE OF ALASKA RECEIVED i' ALASKA OIL AND GAS CONSERVATION COMMISSION MAR 1 g 2012 r' APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 Alaska Oil &Car Cots_ Commission 1.Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well [1 V,J. ,ange Approved Program ✓ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension Operations Shutdown ❑Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing ❑Other: 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Pioneer Natural Resourcs Alaska, Inc. Development ❑ Exploratory 2 212-008 • 3.Address: 700 G Street, Suite 600 Stratigraphic ❑ Service ❑ 6.API Number: Anchorage,AK 99501 50-703-20654-00-00• 7.If perforating,closest approach in pool(s)opened by this operation to nearest 8.Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ElNo El Sikumi 1 . 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL 355037 • Undefined 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 3,181' 3,181' 1,945' 1,945' N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 110' 16" 158' 158' N/A N/A Surface 1,945' 13-3/8" 1,945' 1945' 5,020 psi 2,260 psi Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): 12.Attachments: Description Summary of Proposal Q 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory 0 Development ❑ Service ❑ 14.Estimated Date for 15.Well Status after proposed work: 3/19/2012 Commencing Operations: Oil Q Gas ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: 3_17_1z_ WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: 6 S�L.ar- - . GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Dustin Bruce,343-2173 Printed Name Ver ohnson Title Exploration Project Engineer Signature Phone 343-2111 Date 3/19/2012 Prepared By:Kathy Campoamor,343-2183 , v COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 5 2,'to(0 Plug Integrity ❑ BOP Test Mechanical Integrity Test ❑ Location Clearance ❑ Other: "t4 /0. c r i 1 hw.-- -, -6,;1( 4.kaA..r . ( $G,-rr: CaSil ) Subsequent Form Required: / 6 --,-(0 / APPROVED BY Approved by: A4 �":77,10 `/ _� COMMISSIONER THE COMMISSION Date: 3 - 22-- (2_— 2, I 1 farm 10-4 t / 6.--p—. ,, 1/‘ -) I r I k I A I �Z Submit in Duplicate / i,j.` • pdated Well Plan Summar Sikumi #1 2012 Winter Exploration Drilling Program — Drill, Log, & Test Ivishak - Vertical Surface TD @ 1,945' MD / TVDrkb • Intermediate TD @ 6,332' MD / TVDrkb • Production Liner TD @ 8,456' MD / TVDrkb 4-1/2" Contingency Liner to TD @ 8,456' MD / TVDrkb Surface Location: 698'FNL, 1,169'FEL,Sec. 16,T13N,R7E,UMIAT ASP 4(NAD27)projection X=459,259.09 Y=6,027,468.5 Target: Ivishak Sand 698'FNL, 1,169'FEL,Sec. 16,T13N,R7E,UMIAT X=459,259.09 Y=6,027,468.5 Z=7,719'TVDss Bottom Hole Location Sikumi-#1 698' FNL, 1,169'FEL,Sec. 16,T13N,R7E,UMIAT X=459,259.09 Y=6,027,468.5 Z=8,418'TVDss AFE Number:021151 Est. Start Date: March 05,2012 Rig:Nabors 27-E Operating days: 40 days to Drill,Test,and Abandon Objective&Well Type Ivishak Exploration Well Well Design: Conventional(13-3/8"x 9-5/8"x 7"liner x 3-1/2"Contingency liner)Vertical • Current Mechanical Condition: Original Ground Elevation 0' (sea level) Well Bay Footing(WBF=Ice Pac Level): O.G.Elev+Ice Pad:4.2' RKB to Ground Level: 41.25' Rig Elevation: RKB+MSL= 41.25' Conductor: — 135 MDrkb Sikumi-#1 Drilling Program Revision Page 1 of 20 March 19`h,2012 Revised Summary Drilling Operations Rig Activity: Drill and Test 1. Ran 13-3/8"surface casing to 1,945'MD where it became stuck. Several unsuccessful attempts were made to pull free. 2. Cemented casing at 1,945' with inner-string.Bump dart with 500 to 1,000 psi over fmal displacement pressure. Bled. off pressure,check floats held. 3. Returns were lost during the cementing. No Cement to Surface. 1"pipe run into 13-3/8"X 20"annulus to-80' below ground level to tag cement. Mix and pump 30 bbls of 11.1 ppg to obtain cement returns to suface. !, 4. ND Diverter,set 13-3/8"emergency slips.NU Drilling spool and BOPE. Test BOPE to 250/4500 psi-Notify /‘ AOGCC 48 hours in advance of test. 5. MU 12-1/4"bit on BHA,Motor,&MWD/LWD. 6. Test the 13-3/8"casing to 2,500 psi for 30 minutes prior to drilling out shoe.Proceed with DO. r�k 7. Drill through surface shoe,to 20' into 16"rathole(previously drilled un-cased surface hole). Perform J$1 to a minimum of 12.5 ppge. Note: If LOT>12.5 ppge,drill well as programmed.If LOT< 12.5 ppg,set intermediate section between 3,100'-4,200(into the Brook 2b) 8. Wash and ream to previous TD at 3,181'MD.Displace spud mud with 10.0 ppg LSND drilling fluid. 9. Drill Intermediate section to TD.C&C mud for running casing. 10. Change one set of pipe rams to 9-5/8"and test BOPE as required. 11. Run and cement the 9-5/8"40#L-80 Hydril 521intermediate casing. 12. Bump the plug and bring the pressure up to 3,500 psi-hold for 5 minute pressure test. Release pressure and ensure floats are holding. 13. Bullhead permafrost cement down the 13-3/8"x 9-5/8"annulus to freeze protect the well to- 1,700'TVD(wait on primary casing cement a minimum of 24 hrs before freeze protecting). 14. MU 8-3/4"bit on BHA,Motor,&MWD/LWD. 15. Test the 9-5/8"casing to 3,500 psi for 30 minutes prior to drilling out shoe. Displace LSND drilling fluid with 6% KC1 Baradril.Proceed with DO once drilling fluid is fully conditioned and weighted. 16. Drill through intermediate shoe track,rathole+20'-50'of new hole and perform LOT to a minimum of 12.5 ppge. 17. Drill 8-3/4"section to TD.C&C mud for liner. 18. Change one set of pipe rams to 7"and test BOPE as required. 19. Run and cement the 7"26#L-80 BTC-M liner. x/20. Bump plug and ensure floats are holding. c. ........_ J�( Contingency Liner: 11� `21. PU 4"DP as needed to TD production hole section.Run tapered drill string with-200' of 4"DP above 7"liner top. 22. Change pipe rams to VBR 2-7/8"x 5"and test BOPE to 250/4500 psi-Notify AOGCC 48 hours in advance of test. 23. MU 6-1/8"bit on 4-3/4"BHA,MWD/LWD/BatSonic drilling assembly on 4"x 5"DP and TIH. 24. Test casing to 3,500 psi-chart and hold for 30 minute pressure. 25. Drill through 7"liner shoe track. 26. Drill rathole+20'-50' of new hole and perform LOT to a minimum of 12.5 ppge. 27. Drill 6-1/8"production hole to TD.C&C mud for casing. 28. Run and cement 4-1/2" 12.6#L-80 Hydril 521 liner. 29. Bump plug and hold 3,500 psi on casing for 5 minutes,ensure floats are holding,TOOH laying down DP. Flow Test: 30. PU and RIH with 3-1/2"work string with completion packer and tubing conveyed perforating guns,land work string. 31. NU and test Flow-test tree 32. Set packer.RU and NU test lines. 33. Perforate and commence Ivishak Test(24-36 hrs flow test) 34. P&A well per AOGCC regulations(TBD). Sikumi-#1 Drilling Program Revision Page 2 of 20 March 19`h,2012 35. RDMO Sikumi #1 Drilling & Test Schematic Well Head: 13-3/8",5K,VetcoGray Tree: 4-1/16"Flange,5K,Horizontal 1 A, Casing/Tubing • Item# Item MD(ft) TVD(ft) A 20"94# H40 Conductor: 19.124" ID(18.936" Drift) 135 135 B 13-3/8"68#L-80 BTC(12.25"ID,12.25"Drift): 16" 1,945 1,945 C 9-5/8"40#L-80 Hydril 521 (8.835"ID,8.679"Drift): 12-1/4" 6,332 6,332 D 7"26#L-80 BTC-M Liner(6.276"ID,6.151"Drift):8-3/4" 8,456 8,456 B 4 1 E Contingency:4-1/2"12.6#L-80 Hydril 521 (3.958"ID,3.833"Di If needed Cement at 4,374' Upper Completion (500'above Torok Item#,tom. MD(ft) TVD(ft); @ 4,874) 1 VetcoGray Tubing Hanger(Cosmo Model) 0 0 2 3-1/2"WS (9.3# L-80 SMLS TC-II (2.992"ID, 2.867" Drift) TBD TBD 3 3-1/2"X Nipple, x.xxx" ID TBD TBD 4 Tubing Conveyed Production Packer TBD TBD 5 3-1/2"XN Nipple, x.xxx" ID Nogo TBD TBD 6 3-1/2"Ceramic Disk TBD TBD 7 3-1/2"TCP 6 SPF TBD TBD Z 8 s " 8 ZXP Flex III Liner Hanger/Top Pkr 6,132 6,132 633 c Cement at 6,856' (500'above Sag River @ 7,356') r i O tu r LDate: Revision By: Comments 03-19-12 DBB Sikumi Redesign Big Bore Sikumi #1 NATURAL RESOUCESALASKA Well Schematic Formation Integrity Testing Requirements: Sikumi-#1 Drilling Program Revision Page 3 of 20 March 19`h,2012 • Test Point Depth Test Type Minimum EMW 13-3/8"Surface Shoe Rathole+20'to 50' from shoe LOT 12.5 ppg 9-5/8"Intermediate Shoe Rathole+20'to 50' from shoe LOT 12.5 ppg 7"Drilling Liner Shoe Rathole+20' to 50' from shoe LOT 12.5 ppg Casing Shoe Leak-Off/Formation Integrity Test Procedure: 1. After testing BOPE, pick up the drilling assembly and RIH to the float collar. Circulate to consistent mud weight and rheology. 2. Shut in with the pipe rams and test the casing to the required test pressure. Record the volume of mud required and the corresponding pressures in 1/4 bbl increments. When the design pressure is reached shut in the well and record shut-in pressure for 30 minutes. 3. Bleed off pressure while taking returns to a calibrated tank and record volume recovered. 4. Drill out the shoe track. Drill 20 feet of new hole and circulate the hole clean with consistent mud weight in/out. Pull up into the casing shoe. 5. Perform a Leak Off Test(or Formation Integrity Test): - Calculate the required test pressure to reach leak off(or formation integrity test limit) with the actual mud weight and the estimated fracture EMW. - Plot the casing test data and the calculated leak off on appropriate scale coordinate paper. As a guide, use the data from the casing test to determine the approximate volume of mud required to reach the calculated LOT/FIT. - Shut the well in. R/U the test pump. - Bring the pump on line at 0.25—0.50 bpm.Maintain a constant rate. - Record the pressure for every % of a bbl pumped. - Continue pumping until the pressure vs.volume curve breaks over indicating leak off. Note: For FIT,do not take to leak off - Discontinue pumping and shut in the well. Record the shut in pressure in 1 minute increments for 10 minutes or until pressure shows stabilization. - Bleed off the pressure and record the volume of mud recovered. - Plot the data to determine the LOT/FIT pressure at the shoe as EMW. - Submit the test results to the Pioneer drilling engineer for distribution as required. Sikumi-#1 Drilling Program Revision Page 4 of 20 March 19`h,2012 Drilling Fluids Program: Intermediate Mud Properties: 12-1/4"hole LSND Interval Density(ppg) Viscosity(secs) YP PV MBT API ml Initial to TD 10.0ppg 40—60 25—35 10-20 <25 4—6 Test/Production Mud Properties: 8-3/4"hole 6%KC1 Baradril-N Interval Density(ppg) Viscosity(secs) YP PV MBT API ml Initial to TD 10.5 ppg 40—60 18—25 10-20 <25 4—6 Contingency Drillin Liner Mud Properties: 6-1/8"hole 6%KC1 Baradril-N Interval Density(ppg) Viscosity(secs) YP PV MBT API ml Initial to TD 10.0 ppg 55-80 15-25 15-25 <7 <4 Sikumi-#1 Drilling Program Revision Page 5 of 20 March 19`h,2012 Formation Markers: MD Subsea Pore Frac Planned Formation Tops (feet) (feet) Press. Gradient MW Comments (PPge) (PPP) (PPg) Permafrost Base - 1,700 -1944 * 13.7 > 10.0 Keep mud<50°F West Sak 2,071 -2033 8.5 13.7 10.0 Cret Tuff 2,680 -2642 8.5 13.7 10.0 Base of fluvial sands Hue 2 shale 2,995 -2957 8.5 13.8 10.0 SCP 3,003 -2,965 8.5 13.8 10.5 , Top of Upper Confining Brook 2b 4,126 -4,088 8.5 13.7 10.5 Top Torok 4,874 -4,836 8.5 13.0 10.5 Base Torok 5,040 -5,002 8.5 12.9 10.5 Torok Sh 1 5,306 -5,268 8.5 12.8 10.5 Top HRZ 5,708 -5,670 8.5 12.7 10.5 Base HRZ 5,858 -5,802 8.5 12.6 10.5 Kalubik Mkr 5,889 -5,851 8.5 , 12.9 10.5 Kup C 5,965 -5,927 9.9 13.3 10.5 LCU(Miluveach) 5,965 -5,927 9.9 13.3 10.5 li BCU(Upper Kingak) 6,078 -6,040 9.9 13.3 10.5 Nuiqsut 6,124 -6,086 9.8 13.3 10.5' Nuiq Base 6,241 -6,203 9.8 13.3 10.5 Nechelik 6,252 -6,214 9.8 13.3 10.5 Nechelik Base(Lower Kingak) 6,307 -6,269 9.8 13.3 10.5 ICP1 6,332 -6,294 9.8 13.3 10.5 ICP2 7,356 -7,318 9.4 ' 13.3 10.5 - Contingency Liner Sag River 7,356 -7,318 9.4 - 12.5 9.6 Shublik Upr 7,436 -7,398 9.4 12.5 9.6 Shublik Lwr 7,586 -7,548 9.4 12.5 9.7 Ivishak 7,676 -7,638 9.4 12.5 9.7 Ivish Upr 7,757 -7,719 9.4 12.5 9.7 Ivishak Mid 7,990 -7,952 9.4 12.5 9.8 Ivishak Lwr 8,229 -8,191 9.4 12.5 9.9 Kavik 8,356 -8,318 9.4 12.5 10.0 TD 8,456 -8,418 9.4 ' 13.3 10.0 Sikumi-#1 Drilling Program Revision Page 6 of 20 March 19`h,2012 Logging Program: 12-1/4"Section: Intermediate Drilling: Mud Logging(samples collected every 25'to section TD) GR(gamma)/EWR(resistivity)/ALD(azimuthal density)/CTN(neutron)/QBAT(sonic) • Open Hole(Wireline): STAR(res)/XMAC(acoustic mechanic properties)/MREX(mag resonance) Cased Hole: N/A 8-3/4" Section: Production Liner Drilling: Mud Logging(samples collected every 25'to section TD) GR(gamma)/EWR(resistivity)/ALD(azimuthal density)/CTN(neutron)/QBAT(sonic) Open Hole(Wireline): RCI Pressures/STAR(Hi-res resistivity)/XMAC(acoustic mechanic properties)/RSW Cores Cased Hole: N/A 6-1/8"Section: Contingency Liner Drilling: Mud Logging(samples collected every 10'to section TD) GR/EWR/ALD/CTN - Open Hole(Wireline): RCI Pressures&Samples(DPC)/STAR/XMAC/RSW Cores Cased Hole: N/A Sikumi-#1 Drilling Program Revision Page 7 of 20 March 19th,2012 Sikumi#1 Casing Program: Hole Casing/ Weight Grade Conn. Casing Csg/Tbg Top Hole Btm Size Tubing Length(ft) MDrkb(ft) MD/TVDrkb(ft) Driven 20" 94# H-40 Welded 92 Surface 135 16" 13-3/8" 68# L-80 BTC 1,945 Surface 1,945 12-1/4" 9-5/8"* 40# L-80 Hydril 521 6,350 Surface 6,350 8-3/4" 7" 26# L-80 BTC-M 2,174 6,200 4,474 6-1/8" 4-1/2" 12.6# L-80 Hydril 521 8,474 Surface 8,474 *Special drift for 8-3/4"drift Casing Properties: Size Weight Grade ID Drift Conn. Internal Collapse Tensile Strength ID Yield (psi) (psi) Conn. Body 20" 94# H-40 19.124" 18.936" Welded Driven Conductor Casing 13-3/8" 68# L-80 12.415" 12.259" BTC 5,020 2,260 1,545 M 1,556 M 9-5/8"* 40# L-80 8.835" 8.75" Hydril 521 5,750 3,080 641 M* 916 M 7" 26# L-80 6.276" 6.151" BTC-M 7,240 5,410 641 M 604 M 4-1/2" 12.6# L-80 3.958" 3.833" Hydril 521 8,430 7,500 289 M 289 M *Special drift for 8-3/4"drift Disposal: Annular Injection: No Annular Injection Cuttings Handling&Fluid Handling: Drill cuttings and waste fluids will be taken to the appropriate permitted sites on the Kuparuk River Unit,the Pad 3 and DS-4 GNI facilities in the Prudhoe Bay Unit,and/or the Class 1/Class 2 injection well at ODS in the Oooguruk Unit Sikumi-#1 Drilling Program Revision Page 8 of 20 March 19`h,2012 Sikumi #1 Cement Calc] ions: 13-3/8" Surface Cement Ops Revision: The slurry design volumes are based on bringing cement to surface and with 400'of fill for the tail cement.Bottom of permafrost is located at 1,546'MD.250%excess is utilized for the lead and 30%excess for tail below the permafrost with the use of an inner-string(stab-in)cementer to assure cement to surface.A frac gradient of 12.5 ppg at 1,945' was used with a max ECD shown through simulation of 12.17 ppg at 5 bpm. Fluid Fluid Fluid Name Surface Estimated Downhole # Type Density Avg Rate Volume lbm/gal bbl/min 1 Spacer Spacer 8.3 5.0 10 bbl 2 Spacer Weighted Spacer 10.5 5.0 60 bbl 3 Cement Lead Cement: Permafrost(4.15 ft3/sk) 11.1 5.0 540 sks 4 Cement Tail Cement: Premium(1.18 ft3/sk) 15.8 5.0 250 sks 5 Spacer Displacement Fluid 8.3 5.0 10 bbl 6 Mud Displacement Fluid 9.6 5.0 23.04 9-5/8" Intermediate Cement Ops: The slurry design volumes are based on 30%excess with cement brought 500'MD above the top of the Torok located at 4,850' MD(TOC at 4,392').A frac gradient of 12.5 ppg at 6,332' was used with a max ECD shown through simulation of 12.26 ppg at 5 bpm. Fluid Fluid Fluid Name Surface Estimated Downhole # Type Density Avg Rate Volume lbm/gal bbl/min 1 Spacer Spacer 8.3 5.0 10 bbl 2 Spacer Weighted Spacer 11.5 5.0 60 bbl 3 Cement Lead Cement: Permafrost(4.15 ft3/sk) 12.5 5.0 170 sks r- 4 Cement Tail Cement: Premium(1.18 ft3/sk) 15.8 5.0 390 sks 5 Spacer Displacement Fluid 8.3 5.0 10 bbl 6 Mud Displacement Fluid: LSND Drill Mud 9.6 5.0 465 bbl 0o Sikumi-#1 Drilling Program Revision Page 9 of 20 March 19th,2012 7" Drilling Liner Cement Ol Discussion The slurry design volumes are based on 30% excess and bringing cement to 6,856',—500' above the Sag River estimated at 7,356'. A frac gradient 14.0 ppg is anticipated at 8,456' was used with a max ECD shown through simulation of 12.69 ppg. Fluid Fluid Fluid Name Surface Estimated Downhole # Type Density Avg Rate Volume lbm/gal bbl/min 1 Spacer Spacer 8.3 5.0 10 bbl 2 Spacer Weighted Spacer 11.5 5.0 60 bbl 3 Cement Tail Cement: Premium(1.18 ft3/sk) 15.8 5.0 290 sks 4 Spacer Displacement Fluid 8.3 5.0 10 bbl 5 Mud Displacement Fluid: LSND Drill Mud 9.6 5.0 183 bbl 4-1/2" Contingency Production Liner Cement Ops: Discussion The slurry design volumes are based on 30%excess and bringing cement—200'MD above the top of the liner hanger located at 7,224'MD. A frac gradient of 12 ppg at 8,456' was used with a max ECD shown through simulation of 11.72 ppg. Fluid Fluid Fluid Name Surface Estimated Downhole # Type Density Avg Rate Volume lbm/gal bbl/min 1 Spacer Spacer 8.3 5.0 10 bbl 2 Spacer Weighted Spacer 11.5 5.0 30 bbl 3 Cement Tail Cement: Premium(1.18 ft3/sk) 15.8 5.0 220 sks 4 Spacer Displacement Fluid 8.3 5.0 10 bbl 5 Mud Displacement Fluid: LSND Drill Mud 9.6 5.0 113 bbl Sikumi-#1 Drilling Program Revision Page 10 of 20 March 19`h,2012 Drilling Plans/Discussion/Hazai Surface Hole, 135'to 1,945'MD/TVD: The Sikumi pad is located offshore in State of Alaska waters, in the Northern mouth of the Colville River, approximately two (2)miles southwest of the Pioneer Oooguruk Drill Site. Colville Delta#1 (within 1.5 miles of Sikumi#1)was drilled with no indication of shallow gas, hydrates, or shallow formation instability. A NE-SW seismic traverse conducted through the Colville Delta#1,the proposed wellbore for Sikumi#1,and Kalubik#1, also show no indications of shallow drilling hazards. V The surface interval will be drilled beginning with fresh water based Spud mud at± 9.6 ppg for primary well control and at 10.0 ppg at base of permafrost at ± 1,700'. Secondary well control will consist of a 21-1/4" x 2000 psi Diverter assembly installed on the 20" conductor. All drilling, tripping, and casing operations will be conducted in accordance with Pioneer Natural Resources and Nabors Alaska Drilling standard drilling operations procedures. These practices will maximize wellbore competence and minimize swab, surge and equivalent circulating density (ECD). Surface casing was set at 1,945' MD in the Cretateous Tuffs. The casing was cemented to surface utilizing inner-string cementing with 1" top job from 120' / MD to surface. Intermediate Hole, 1,945'to 6,332'MD/TVD: % " For surface pressure control,an 13-5/8"x 10,000 psi BOP will be installed on the surface casing and tested prior to drilling out of the surface casing. A 12-1/4"hole will then be drilled to—6,332' MD, through the Torok, Kalubik,Nuiqsut formations to the Intermediate Casing Point(ICP)in the base of the Nechelik.To accommodate reservoir evaluation throughout this interval, open hole logs and rotary sidewall coring will be collected if time allows. While coring and logging, standard well control practices will be utilized. This intermediate interval of the Colville Delta#1 and Kalubik#1 offsets did not indicate the presence of abnormal pressures. Via the Oooguruk 3D seismic survey, two faults are expected to intersect the proposed Sikumi #1 wellbore in the Torok (—j 5,500') and in the Nechelik('—6,150')formations. It is expected that the upper fault will not present any issues but the fault within the Nechelik may present drilling hazards, i.e., drilling fluid losses and/or stuck pipe, and should be drilling with caution. Primary well control will be maintained with freshwater based LSND mud at ± 10.5 to 11.0 ppg through the Intermediate hole section. The intermediate casing will be set in the Nechelik Base / Lower Kingak at ± 6,332' MD/TVD. Pioneer and Nabors drilling and well control standard procedures will be utilized throughout the interval. The casing will be cemented to 500' above the Torok. Following the Sikumi Anti-collision analysis, it is apparent that we will be within 250' ellipse-center to ellipse-center of ODSN-23i which is an active producer for ODS. The closest intersection point will occur at 6,217' MD and at 14,750'MD in ODSN-23 within the Nuiqsut formation. Given this well is still a producer, there is minimal concern for virgin or over pressured reservoir but likely a depleted reservoir resulting in an estimated pore pressure of 1,500 psi(4.5 ppge).With the tight /low porosity nature of the Nuiqsut in this area, it is possible to drill through this formation and not experience any issues,but pressures must be closely monitored and all precautions taken not to exceed the frac gradient at 13.3 ppge (4,300 psi). Before cutting the Nuiqsut,plan to have loss circulation material on hand and mud volume to combat suspected losses and keep them to a minimum. This subject matter will be addressed in depth during the Intermediate section review that will be conducted prior to drilling the Intermediate. Drilling Liner Hole,6,332'to 8,456'MD/TVD: 7" Sequentially, the 8-3/4" Intermediate hole will drill through the remaining Kingak formation, through the target Ivishak formation,and into the Kavik formation to a TD depth of 8,456'MD. Open hole logs will be obtained for analysis followed by an 7"26#L-80 completion liner cemented 500' above the Sag River at 7,374'. Data from offset wells and seismic velocities at the proposed Sikumi#1 wellbore, which compare favorably with the Colville Delta#1 velocities, indicate no drilling hazards and normal reservoir pressures. Primary well control will be maintained with an 6%KC1 based LSND mud at± 10.5 to 11.0 ppg. Secondary well control will be accomplished using the installed 13-5/8"x 10,000 psi BOP. If a discovery of hydrocarbons occurs and time allows, flow testing and pressure build-up tests will be used to determine formation properties and estimate the commerciality of the accumulation(s). A reservoir stimulation may be performed in the form of an acid or fracture treatment. The flow periods and any stimulation will be determined in response to analysis of initial log data, any initial flow data, pressure transient data, reservoir fluid properties, and ice time. The well will be flowed to temporary surface production facilities consisting of gas and solid separation and fluid storage tanks. Produced fluids will be trucked to existing production facilities during and following completion of the flow testing operations. Additional prospective intervals may be tested as described above or may be commingled with the previously tested intervals. If commingling is chosen,production logging may be performed during the flow test to determine the productivity of the individual zones. Directional control and Wellbore surveys Sikumi-#1 Drilling Program Revision Page 11 of 20 March 19`h,2012 The Sikumi# 1 well is a vertical wei. ..ith little need for directional control in the sur.—e hole and intermediate hole. There is a possible need for steering capability in the production interval due to uncertainty in the fault location at TD. AOGCC requirements are for wellbore surveys every 500 feet. The surface section will be drilled with a straight mud motor assembly and no steering corrections will be executed.At the surface section TD the survey data will be projected to the intermediate TD point and a decision as to the need for directional control will be made.If no correction is required the intermediate section will also be drilled with a motor assembly with no bend. There is a possible need for steering control in the upper shale section of the production interval.A bent housing motor with minimum deflection will be used in that section as a precautionary measure. Hydrogen Sulfide Hazards Although the Sikumi drill site is not designated as an H2S site,Pioneer Natural Resources and Nabors Alaska Drilling standard operating procedures for H2S precautions will be followed at all times.Drilling fluid additives for controlling mud properties in the event of Hydrogen Sulfide contamination will be maintained on site. Hydrates and Shallow Gas Hazards An 460' interval of elevated Cl was detected in the Kalubik#1 well (1.45 mile away from the planned Sikumi#1 wellbore) with a base at 1,617 ftss. Although this has been interpreted as a possible hydrate interval, there was neither free gas encountered nor any operational drilling issues that occurred. No other wells bracketing the proposed location have any evidence of hydrates. The seismic indicates that this interval thins in the direction of the Sikumi location, and this seismic interval thins to less than 100 ft. For the purposes of well planning,a possible hydrate interval should be planned for,although it is not likely to affect drilling operations. There are no other seismic indicators of free gas in the upper part of this section within 2,000 ft. of the well location. Lost Circulation Hazards The fracture gradients of the formations to be penetrated are sufficient to withstand the pressures exerted on them while drilling and installing casing. The formations to be penetrated are expected to have relatively low permeability and fluid loss is not expected to be significant.Drilling fluid rheology, solids concentration,and flow rates will be balanced to minimize filter-cake build up, minimize ECD, and maximize hole cleaning. Drilling and casing running practices will focus on minimizing swab and surge pressures and ECD. Contingency mud materials for lost circulation and wellbore stability will be maintained at the Sikumi#1 location. Stuck Pipe Hazards The potential for differentially stuck pipe in this well is minimal above the Kingak formation but must be closely monitored throughout Kingak section and remaining sections of the well,as these formations reactivity and stability tendencies tend to be time dependent. As described above, proper hole cleaning and mud maintenance will minimize the incidence of differential sticking. There is a low potential wellbore constriction due to swelling shales. This tendency will be controlled by the use of an inhibited brine mud system. Wellbore Breathing Hazards Wellbore breathing or ballooning has been well documented across the North Slope over the intervals intended to be drilled for reservoir evaluation in this well. Control of ECD's and minimizing the amount of swab and surge to the formation is critical to reduce the chances of wellbore breathing. Should breathing be encountered,proper well control procedures and evaluation will be activated as outlined in the Pioneer Wellbore Breathing Control Procedure. Fault Hazards The current interpretation of the Oooguruk 3D seismic survey shows there are some elevated amplitudes near the Colville Delta#1 well that occur in the vicinity of an interpreted fault that extends from the base of the permafrost into the Cretaceous section. There were no significant hydrocarbons detected at the base of the permafrost in the Colville Delta#1 well. Although some growth faults associated with deposition of the Sagavanirktok formation may be present in the shallow, poorly consolidated sediments, there do not appear to be any major faults extending into the Torok within 2,000' of the proposed Sikumi#1 wellbore. It is expected that the upper fault will not present any issues but the fault within the Nechelik may present drilling hazards,i.e., drilling fluid losses and/or stuck pipe,and should be drilling with caution. As per geologic analysis,the Nechelik fault will be intersected by the Sikumi planned wellbore between 6,100' —6,600'. It is believed the fault will be crossed on the deeper side of the range.Therefore,the fault may be seen in the bottom of the Intermediate hole section or in the top of the Production hole Sikumi-#1 Drilling Program Revision Page 12 of 20 March 19`h,2012 section of the current well plan.The ':is estimated to have an 70' throw and will t ..rsect by the Sikumi#1 wellbore low to high. Sikumi-#1 Drilling Program Revision Page 13 of 20 March 19th,2012 kumi#1 Drilling Hazards and Contingenc POST THIS NOTICE IN THE DOGHOUSE Well Control — Prior to drilling into the Torok,Kup C to ICP,and Sag River to TD,hold a pre-reservoir meeting to outline heightened awareness for kick detection and lost circulation. Hydrates and Shallow gas — No hydrates are expected in this area. Lost Circulation/Breathing/Formation Stability/Stuck Pipe Events — Breathing may be seen while drilling the Hue shale. Minimizing swab and surge on the formation is critical to reducing the impact of breathing in the wellbore. Breathing was seen in the ODSN-40 well,but only after substantial time in trying to solve the lost circulation problems in the fault seen in and below the Torok Sands. — During the attempt to retrieve a fish from the ODSK-33 well,an un-centralized BHA got stuck from differential sticking across the Torok due to the increase in mud weight needed to hold back the shales below. Differential sticking indications were not noted with the drilling BHA and drill pipe. Kick Tolerance/Integrity Testing Kick Tolerance/Integrity Testing Summary Table Casing set/Interval Maximum Influx Volume Mud Weight Expected Min LOT/FIT Pore Press Max Kick Tolerance Max Shut-in Kick Circ Influx to Shoe Tolerance 13-3/8"Surface/ 9.8 bbl 22.4 bbl 10.0 ppg 3,236 12.5 ppg(LOT) 12-1/4"Intermediate 9-5/8"Intermediate/ 72.9 bbl 67.0 bbl 10.5 ppg 3,604 12.5 ppg(LOT) 8-7/5"Drilling Liner 7"Drilling Liner/ 54.5 bbl 48.7 bbl 10.0 ppg 4,142 12.5 ppg(LOT) 6-1/8"Production NOTE: All LOT/FIT will be taken with a minimum of 20-ft and a maximum of 50-ft of new hole drilled outside of the previous casing string Hydrogen Sulfide The Sikumi Drill Site is not designated as an H2S site,however Standard Operating Procedures for H2S precautions should be followed at all times. Faults Per the Oooguruk 3D seismic survey,two faults are expected to intersect the proposed Sikumi#1 wellbore in the Torok(- 5,500')and in the Nechelik(—6,150')formations. It is expected that the fault within the Nechelik may present drilling hazards, i.e.,drilling fluid losses and/or stuck pipe,and should be drilled with caution. Directional Control and Wellbore Surveys The Sikumi# 1 well is a vertical well with little need for directional control in the surface hole and intermediate hole. There is a possible need for steering capability in the production interval due to uncertainty in the fault location at TD. AOGCC requirements are for wellbore surveys every 500 feet. The surface section will be drilled with a straight mud motor assembly and no steering corrections will be executed.At the surface section TD the survey data will be projected to the intermediate TD point and a decision as to the need for directional control will be made.If no correction is required the intermediate section will also be drilled with a motor assembly with no bend. There is a possible need for steering control in the upper shale section of the production interval. A bent housing motor with minimum deflection will be used in that section as a precautionary measure. Sikumi-#1 Drilling Program Revision Page 14 of 20 March 19`h,2012 Page l of 2 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Saturday, March 17, 2012 5:16 PM To: Quay, Walter Cc: Johnson, Vern; Bruce, Dustin; Lewis, Steve Subject: Re: Sikumi#1 (PTD 212-008) Walter, You have verbal approval to cement surface casing at current depth as outlined below. A sundry with an outline of this procedure and additional steps that deviate from the approved PTD must be submitted before drilling ahead. Regards, Guy Sent from my iPhone On Mar 17, 2012,at 3:06 PM, "Quay, Walter" <Walter.Quay@pxd.com>wrote: Guy, Attached is the revised procedure for Sikumi#1. Scope: While running 13-3/8"surface casing,tight hole was experienced beginning at 1,760'. We were able to wash down to 1,945',where the casing became stuck. Several unsuccessful attempts have been made to pull free. We have also pumped a drill-slide pill and decre.:' g the MW from 10.2 to 9.6 ppg,with unsuccessful results.At this point,we have opt-. to move forward and cement casing at its present depth of 1,945' utilizing the in > -string method that was initially planned in the program. Below,please find a revi -• surface casing cementing procedure.. l. Perform PJSM prior • beginning tripping inner-string and cementing operations(a tripping tuto '.I utilizing false rotary is advised; i.e. foot placement,utilizing tag lines,go. communication,and other possible unfamiliar hazards associated with the •aeration). 2. Verify t casing is setting soundly in slips, LD franks tool,RD Nabors casing crew, . • cut 13-3/8"to an adequate height to utilize false rotary table(measure and c once). 3. ' 4 false rotary table and prepare to run inner- cementing string with 5"DP. 4. 5. TIH with inner-cementing string. 6. < —[endif]-->Circulate one(1)drillstring volume just above the float equipment be'ore stabbing the sealing adapter.. 7 Insert sealing adapter and determine whether the seal is establis •d. After ensuring the sealing adapter seal is holding, proceed to CBU using the Step-Rate Method. 9. RU Halliburton and test lines.Mix and pump cement according to Halliburton program (attached). Use 10 bbl Water,60 bbl 10.0 ppg Duai Spacer(dyed red)ahead of cement. Calculate cement volume using +/Itir)01') Page 2 of 2 250%excess on lead and 30%on tail. l0. When dyed spacer return . e seen at surface, switch to tail slurry, drop dart,and displace. 11. Utilize tattle-tail t. erify dart drop and displace cement at maximum practical rates with cementer. 12. Approximat; y 2 to 3 bbl before dart reaches the float equipment,decrease displacement rate to 1/2 • 1 bpm. 13. Bump art with 500 to 1,000 psi over final displacement pressure. Bleed off pressure and check •ats.After ensuring that the float valve and latchdown plug is holding,retrieve th- inner string. 14.  'OOH,RD false rotary. 15. 16. ND and PU Diverter. Set emergency slips as per GE Vetco rep. Cut off 13-3/8"c. ing, and LD Diverter. 17. <!- endif]-->NU BOPE and test as per AOGCC approved permit to drill(Give AOGCC i rs notice prior to testing). Regards Walter Quay Office: (907) 343-2129 Cell: (907) 230-3961 Statement of Confidentiality: This message may contain information that is privileged or confidential. If you receive this transmission in error,please notify the sender by reply e-mail and delete the message and any attachments. Page 1 of 2 Schwartz, Guy L (DOA) From: Quay, Walter[Walter.Quay@pxd.com] Sent: Saturday, March 17, 2012 3:06 PM To: Schwartz, Guy L (DOA) Cc: Johnson, Vern; Bruce, Dustin; Lewis, Steve Subject: RE: Sikumi #1 (PTD 212-008) Guy, Attached is the revised procedure for Sikumi#1. Scope: While running 13-3/8"surface casing,tight hole was experienced beginning at 1,760'. We were able to wash down to 1,945',where the casing became stuck. Several unsuccessful attempts have been made to pull free. We have also pumped a drill-slide pill and decreasing the MW from 10.2 to 9.6 ppg,with unsuccessful results.At this point,we have opted to move forward and cement casing at its present depth of 1,945' utilizing the inner-string method that was initially planned in the program.Below,please find a revised surface casing cementing procedure.. 1. Perform PJSM prior to beginning tripping inner-string and cementing operations(a tripping tutorial utilizing false rotary is advised; i.e. foot placement,utilizing tag lines,good communication,and other possible unfamiliar hazards associated with the operation). 2. Verify that casing is setting soundly in slips,LD franks tool,RD Nabors casing crew,and cut 13- 3/8"to an adequate height to utilize false rotary table(measure and cut once). 3. RU false rotary table and prepare to run inner-cementing string with 5"DP. 4. Install the sealing adapter on the inner string and install one(1)bowspring centralizer with stop ring on bottom of the first joint above the adapter. 5. TIH with inner-cementing string. 6. Circulate one(1)drillstring volume just above the float equipment before stabbing the sealing adapter.. 7. Insert sealing adapter and determine whether the seal is established. 8. After ensuring the sealing adapter seal is holding,proceed to CBU using the Step-Rate Method. 9. RU Halliburton and test lines.Mix and pump cement according to Halliburton program (attached). Use 10 bbl Water,60 bbl 10.0 ppg Dual Spacer(dyed red)ahead of cement. Calculate cement volume using 250% excess on lead and 30%on tail. 10. When dyed spacer returns are seen at surface, switch to tail slurry,drop dart,and displace. 1 I. Utilize tattle-tail to verify dart drop and displace cement at maximum practical rates with cementer. 12. Approximately 2 to 3 bbl before dart reaches the float equipment,decrease displacement rate to 1/2 to 1 bpm. 13. Bump dart with 500 to 1,000 psi over final displacement pressure. Bleed off pressure and check floats. After ensuring that the float valve and latchdown plug is holding,retrieve the inner string. 14. TOOH, RD false rotary. 15. Wait on cement a minimum of 4 hours after bumping plug before setting emergency slips. 16. ND and PU Diverter. Set emergency slips as per GE Vetco rep.Cut off 13-3/8"casing,and LD Diverter. 17. NU BOPE and test as per AOGCC approved permit to drill (Give AOGCC 48 hrs notice prior to testing). Regards Walter Quay Office: (907) 343-2129 Cell: (907) 230-3961 'i•;s. of I r •7ti .. LB1 sit 1500 tt,-C4 c • _ _ e`. hoZ� 1'5tt'��50 ? ADA_ 4 .F41L. - ,' 1600 • 1650 e s • 1700 } e. ii • -•SI �. . ...:a.,' 191500 CLtstr�obs4sNr�ir�313X .. 3 ...;,. 14iaJ - dm 1850 1° o CleaAt. 3/4- •r .::2T ::;' 101 1900 194 ' Ca�*`S-Click 3/6 t.---" 1950 iiA i` .+iisi 7...4. .l 2000 116 .. Ai? 1 ii i.:, 2050 — _ Page 1 of 2 Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Friday, March 16,2012 12:21 PM To: 'Quay, Walter' Cc: Johnson, Vern; Bruce, Dustin; Lewis, Steve; Davies, Stephen F(DOA) Subject: RE: Sikumi#1 (PTD 212-008) Walter, You have approval to drop mud weight to 9.6 ppg in order to alleviate possible differential sticking of the 13 3/8"surface casing. In the event that you can't get the casing free and decide to cement it in place contact me and we will look at your new casing plan, FIT calculations etc. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433(cell) From: Quay, Walter[mailto:Walter.Quay@pxd.com] Sent: Friday, March 16, 2012 11:49 AM To: Schwartz, Guy L(DOA) Cc: Johnson,Vern; Bruce, Dustin; Lewis, Steve Subject: Sikumi #1 (PTD 212-008) Guy, As per our conversation this morning,the present plan is to lower the mud weight from 10.1 ppg to 9.6 ppg in the surface interval on the Sikumi No. 1 Exploratory well. Present situation has the 13-3/8"casing stuck with full circulation at 1945' MD. This is adjacent to several sands starting at 1700'. This is the second attempt to run this casing string,with the first attempt on 3/13/2012 reaching^'1815'before pulling the casing and performing a clean out run with a drilling assembly. Pioneer geologists identify the base of the permafrost at 1545'. The mud weight for drilling the interval was 9.7 ppg and above from—1000'to interval TD(3183' MD). Both of the casing run attempts are with 10 ppg mud. The present thinking is,the casing is differentially stuck with the lowering of the mud weight to 9.6 ppg addressing this issue. The 9.6 ppg is still in line with the 3/02/2012 AOGCC request and Pioneer agreement of 9.6 ppg or greater for this interval. Attached along with the 3/02/2012 AOGCC request are a LWD log section and a mudlog for Sikumi. Regards, Walter Quay Drilling Superintendent Pioneer Natural Resources Office: (907)343-2129 Mobile: (907)230-3961 walter.quay@pxd.com Statement of Confidentiality: This message may contain information that is privileged or confidential. If you receive this transmission in error, please notify the sender by reply e-mail and delete the message and any • erb 2._( 2•_ -00 CASING AND LEAK-OFF FRACTURE TESTS Well Name: Sikumi-1 Date: 3/21/2012 Csg Size/Wt/Grade: 13 3/8"68#L-80 Supervisor: Haberthur Csg Setting Depth: 1,945 TMD 1,945 TVD Mud Weight: 9.6 ppg Leakoff pressure= 320 psi LOT= 7.- 12.76 ppg Hole Depth= 3181 and Fluid Pumped= 2.0 Bbls Volume Back= 1.6 bbls Estimated Pump Output: 0.101 Barrels/Stroke LEAK-OFF DATA CASING TEST DATA Enter Strokes Enter Pressure Enter Strokes Enter Pressure Here Here Here Here -> 0 0 -> 0 0 -> 5 80 -> 4 300 -> 10 200 -> 8 700 -> 15 320 -> 12 1000 -> 20 -> 16 1300 -> 25 -> 20 1600 -> -> 24 2000 -> -> 28 2350 -> -> 30 2500 > -> -> -> > -> Enter Holding Enter Holding Enter Holding Enter Holding Time Here Pressure Here Time Here Pressure Here -> 0 300 -> 0 2550 -> 1 270 -> 5 2525 -> 2 250 -> 10 2525 -> 3 230 -> 15 2500 -> 4 210 -> 20 2500 -> 5 195 -> 25 2500 -> 6 185 -> 30 2500 -> 7 175 -> -> 8 165 -> -> 9 155 -> -> 10 140 -> -> -> -> -> -> -> -6—LEAK-OFF DATA f CASING TEST DATA 4000 3900 3800 3700 3600 3500 3400 3300 3200 3100 3000 2900 2800 2700 2600 2500 2400 2300 2200 n 2100 m 2000 $ 1900 1800 1700 1600 1500 1400 1300 1200 1100 1000 900 800 fJ 700 1b 1 600 rr I FT. 500 400 300 200 100 0 0 10 20 30 40 Strokes(#of) —MI—LEAK-OFF DATA f CASING TEST DATA 4000 3900 3800 3700 3600 3500 3400 3300 3200 3100 3000 2900 2800 2700 2600 2500 i ■ ■ ■ ■ 2400 2300 2200 Q, 2100 2000 1900 a 1800 1700 1600 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 0 0 5 10 15 20 25 30 Time(Minutes) . ., C5'3 Fi---1 ,s 0. _F__-_-__-__ . __::: • ,-, ----------_:-.4t--:-._.- - 4 6- -- 000r- -- .- 4' _ r_ - - ,,-- / - --"- __-- / -1- - ,, C• 1- 1- 000Z • , .- ,....,.... / --;-.- „,c1Cp ) - 4) 1 ._.__.. - ------ ---------- "”'-..__,__ _--,_ --• 2 . ' ' / • ...'-'--r-- „.--' -,, 1 , 1 4'. . / / • \ 1J ...-- ` \ . , , , i000 .t - , ' , , \ \ . , o ' I i , 1 1. ;? , ', ...,....._, /' , . \ V V X 0 -.II 1 1 1, ' i I 1 1 11 NNN'\,0 I f.-----, , , -- 0 0 \ 0 , 0 0--- -----0 , °-------77-----2 . . < --, — 0 1 ° ' 1 I i ' I 1, 1(71' \ _ .T.1 i ,TP 133 ' 1 0 1 i t31 ii , ,_ 0 0 I i:- -____ , ...t, 4 ---,:-.1. -4-..., I ' 0, Ofriii , / ----„, 0 , I ) , 0 -.. .- \ „., ) 000 , <.///-• ' '- , ' • ij I -'' . ‘, / NN 1 ttl \ / - • _ -- \. . , . --- • - -- - ' • 400° ---... .- , • I ---- - . - ,-' • _ . \ - - • / - _4____ ___.._------- 30 ° -. . .3:5•Qto \\N _ , _._- , 7•7' , ... _.-------- 2opo ,-- --- _ - - / -- - .-- -si ...,., . . . - -- - _ ... - • - -- i - - l-- - •11.4 91. P I O N E E R Weekly Operations Report Exploration NATURAL RESOURCES ALASKA Sikumi #1 AOGCC Permit# 212-008 Weekly Activities March 7, 2012 - March 16, 2012 3/7/2012 -Report Date& End Depth- 0' Postion last rig complex in place. Continue rigging up. 3/8/2012 -Report Date& End Depth- 0' Continue rigging up on Sikumi#1. Take on spud mud. Hook up Koomey lines to diverter and function test same. 20" ball valve opened in 30 sec 21-1/4"x 2M diverter closed in 124 sec. Test all gas alarms - all passed. Perform accumulator draw down test. Initial pressure - 2900 psi. 1950 spi after closing diverter. 16 sec to recover 200 psi after closing diverter. 43 sec to reach full pressure. AOGCC rep Matt Herrera on location and witnessed all above tests. 3/9/2012 -Report Date& End Depth- 0' PU 99 jts 5" DP to drill surface hole and rack back in derrick. PU HWDP &jars and rack back. Hold pre-spud meeting with crew and service companies. Put up diverter signs. Start bringing BHA components to rig floor. 3/10/2012 -Report Date& End Depth- 775' MU 16" bit and spud well at 08:15 hrs. Drill down 3 stds HWDP to 310'. POOH. MU components for BHA#1. Continue drilling 16"vertical surface hole to 775' MDIND. 3/11/2012 -Report Date& End Depth- 2125' Drill 16"surface hole to 1980' MD. Circ hole clean and make short trip up to 642' MD- OK. CBU. RIH to bottom. Drill ahead to 2125' MD. 3/12/2012 -Report Date&End Depth- 3010' Drill 16" surface hole to 3010' MD/TVD. 144 ,!mss , 3/16/2012 Kathy dampoam•' Date Engineering Tech Pioneer Natural Resources Alaska, Inc. Page 1 of 2 PNRA-Weekly Operations Report Weekly Activities 3/07/12 - 3/16/12 Sikumi#1 3/13/2012 -Report Date& End Depth- 3181' Drill 16" surface hole to TD at 3181' MD. Circ hole clean. POOH. LD BHA. RU to run 13-3/8" casing. Attempt to MU shoe track. 3/14/2012 -Report Date &End Depth- 3181' Continue making up shoe jts 1-3. Cross threaded between jts 2 & 3. Back out connection with rig tongs and clean off thread lock compound. Apply new thread lock and re-torque, OK. Run 13-3/8" casing working thru obstructions to 1810' MD - no further progress. 3/15/2012 -Report Date& End Depth- 3181' Attempt to wash 13-3/8" casing to bottom. Cleaned out to 1815'. POOH, laying down casing. Make up BHA#2 for clean out run. 3/16/2012 -Report Date& End Depth- 3181' Finish BHA RIH clean-out to TD @ 3181' MD. Circulate and condition for casing job. POOH and rig up to run 13-3/8", 68#, BTC casing to ±1700'. harp „4,4.0T 775 cl�� / 3-/61? ("tvr ;22/7/4 3/16/2012 Kathyam oa or Date Engineering Tech Pioneer Natural Resources Alaska, Inc. Page 2 of 2 Page 1 of 2 l Schwartz, Guy L (DOA) From: Johnson, Vern [Vern.Johnson@pxd.com] Sent: Friday, March 02, 2012 4:10 PM To: Schwartz, Guy L (DOA) Cc: Foerster, Catherine P (DOA); Seamount, Dan T(DOA); Norman, John K(DOA); Davies, Stephen F (DOA) Subject: RE: Sikumi#1 (PTD 212-008) Guy, Thank you for the timely response after our meeting this week. As described below, we accept the change and Pioneer will ensure that drilling fluid weight will be 9.6 ppg or greater prior to drilling the upper Cretaceous tuffs interval on Sikumi#1. I will communicate this to the office and rigsite drilling team. Regards Vern Johnson Drilling Manager-Alaska Pioneer Natural Resources 907-343-2111 w 907-575-9430 c vern.johnson@pxd.com From: Schwartz, Guy L (DOA) [mailto:guy.schwartz@alaska.gov] Sent: Friday, March 02, 2012 2:59 PM To: Johnson, Vern Cc: Foerster, Catherine P (DOA); Seamount, Dan T(DOA); Norman, John K(DOA); Davies, Stephen F (DOA) Subject: Sikumi #1 (PTD 212-008) Vern, The AOGCC has finished it's review of the proposed Drilling Fluids and surface casing programs contained in Pioneer Natural Resources Alaska Inc.'s(Pioneer)approved permit for the Sikumi No. 1 exploratory well (Permit to Drill No. 2120080). In Pioneer's application, proposed drilling fluid weights for the 16-inch surface hole vary from 8.5 to 9.6 ppg. The Commission requests that Pioneer modify the approved PTD as follows: Prior to drilling into the upper Cretaceous tuffs interval,the weight of the drilling fluid must be at least 9.6 ppg. The approved surface casing depth of 3021' and remains unchanged. Please acknowledge receipt of this email and your acceptance of the above change to the drilling program. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC Page 2 of 2 793-1226 (office) 444-3433 (cell) Ii Statement of Confidentiality: This message may contain information that is privileged or confidential. If you receive this transmission in error, please notify the sender by reply e-mail and delete the message and any attachments. 3/2/2012 Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Monday, March 05, 2012 4:29 PM To: 'Quay, Walter' Cc: Johnson, Vern; Lewis, Steve; Bruce, Dustin Subject: RE: Nabors 27E Diverter Valve Clarification Ski f pro 2.1'z - 00 Is Thanks, I will update the well file with the correct information. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Quay, Walter [mailto:Walter.Quay@pxd.com] Sent: Monday, March 05, 2012 4:28 PM To: Schwartz, Guy L (DOA) Cc:Johnson,Vern; Lewis, Steve; Bruce, Dustin Subject: Nabors 27E Diverter Valve Clarification Guy, As per our conversation,there are a couple of items in the approved APD for Sikumi that are not correct. • The first is on page 3 of 21 in the Sikumi-#1 Permit to Drill procedure. The verbiage in the Diverter section is"Two(2) 20" hydraulically actuated ball valves". It should be: "One (1)20" hydraulically actuated ball valve". • Additionally the diagrams on page 141 of 147 and 142 of 147 in the Nabors BOP Stack and Surface Diverter diagram for rig 27E show a knife valve for the 20" diverter. It is a ball valve (see attached corrected diagram). Walter Quay Drilling Superintendent Pioneer Natural Resources Office: (907) 343-2129 Mobile: (907)230-3961 walter.quay@pxd.com Statement of Confidentiality: This message may contain information that is privileged or confidential. 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Form. Casing Hole Name x(ft) y(ft) MD(ft) TVDss(ft) Uncertainty/ AZM Dip Shoe to Angle Formation (deg) (deg) Target(ft) (deg) Error Bars(ft) • Target 1 Nuna 459168 6027358 -4775 Target 2 Sag River 459168 ' 6027358 -7360 Target 3 top Ivishak : 459168 6027358 -7680 Target 4 base Ivishak 459168 6027358 -8360 BHL 459168 6027358 -8644 Straight hole penetrating Nuna,Sag River and Ivishak at target location Target Hardlines and Description: RECEIVED Any sliding through the targets planned? CCD 2 * 2012 None,straight hole : Geosteering Requirements: Awe Oil&Gas Cans Commission nnrJnnnrfJTlai IWellsite Geologist Required: —1 I Wellsite Paleontologist Required: Pore Pressure Specialist Required: Geochemical Requirements: Paleological Requirements: Coring Requirements: Geology ical Attachments and Location of Attachments: Type Location of Attachment Formation Pore Pressure Plot Geological Prognosis Structure Map Horizons Well Path Seismic Line Key Offset Correlation Logs Target Section Type Log Cross Section/Stick Section Logging Requirements Hole Section Depths(ft) MWD/LWD Wireline Contingent Objective Den/Neut if GR-Res for minimal washout correlation and Surface —2982'(Hue 2 Shale- Dir/GR/Res (run 1); Dipole Sonic permafrost, TBD) (run 2).12 hrs logging,24 hr Den/Son for 17-1/2"hole seismic tie cleanout • Oriented Dipole Sonic/FMI(12 hrs); rSWC(<50-all Intermediate 1 —6167'(Below Dir/GR/Res/ Torok MDT pressure reservoirs)(10hrs); Evaluate Torok, Nechelik-TBD) Den/Neut/PEF and analysis(30 hrs) CMR in reservoirs- Kup,Nuiqsut, +30 hrs cleanout; possible tie to MDT Nechelik 12-1/4"hole Checkshot to surface (6 hrs); (12 hrs) Correlations through Kingak Intermediate 2 shales,land at LWD BAT Sonic(if no wireline dipole Sag River.Only —7416'(Top Set Sag- Dir/GR/Res/ opportunity to TBD) Den/Neut/PEF sonic); Oriented collect stress 8-3/4"or 8-1/2" Dipole Sonic(8hrs+ data through hole 30 hrs cleanout) Kingak for future development. Checkshot to Intl (only if collected from Intl to surface) Production Oriented Dipole Evaluate Sag —8700'(Below Ivishak- Dir/GR/Res/ Sonic/FMI(9 hrs) River,Shublik TBD) Den/Neut/PEF IF PAY: and Ivishak, 6-1/8"hole MDT pressures; tie seis rSWCs(<50); if no test,then 6 PVT samples from MDT Do the MWD/LWD/PWD Tool Limit the Flow Rates for Given Hole Sections? If limited,which tools and why? gas monitoring and 25'sample catching entire well Mudlogging Requirements: 25'mud gas isotope samples in Torok,Sag River,Shublik and Ivishak ^ a 111 yam > 91,2 N p c,-s11^.t /4"1 cq 1'5 0 w Q w U w ar 0 4J U a) N 0 0 U 4—aU co O -13 0 Q) (1) DC L7 cD 4_+ a) 4- 0 U Is2 Y I`j0 ° • o I i 6 ,_ , , 11, Z o CO t1 F i '1 ,11tI 0 WE YI Mil -0 Q) Q Qlie �r.401i 4-1 � few �i V Y V / W _ Ca N , 1 el' y eC c -� 1 a) 0 a C O ®; rj I ►4 U "T c I+1 11 J‘ - iCI 1 V Y .LLN W ,.1 . 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I' , I I co v * d I141 a 40,1,;4 . -0 03 CC I 0 N N to 4.0 N 0 7 • X. to w a O• 7 a ,,0 V I 1 V E N_ C G CO V o 0 O Vf ro viz 0 s- 4:t1";� c� v1 , mai N 1 1 o �� 8 II u Co, a* S 44410010114110100 CO Y I rn { 1 I o °1 ' g 1 •V E V a) 73 CC C C CO Sio `"ooo c CO'71 l'iri MS CD I aCO { CU-CZ I I I I r '7' I O I 1 _ g f NI C) 0 --h Q CD rt co 70 CD CD O Q O CAI r+ n� n Q tn n rt C o oma 3 cu H 0 0 CD r-t 0) (D 0 Q 0 Cu 011 CD 0_ fD N C 3 0 a) CM n 0 Q 0) CD O O r n• n C 0 N C7 O fD CD r+ CD "t 0 3 v SIATE DIF ALASEA SEAN PARNELL,GOVERNOR ALASKA OIL ANDGAS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 Dustin Bruce Exploration Project Engineer Pioneer Natural Resources Alaska, Inc. 700 G Street, Suite 600 Anchorage, AK 99501 Re: Oooguruk Field, Undefined Pool, Sikumi 1 Pioneer Natural Resources Alaska, Inc. Permit No: 212-008 Surface Location: 4581' FSL, 1170' FEL, SEC. 16, T13N, R7E, UM Bottomhole Location: 4581' FSL, 1170' FEL, SEC. 16, T13N, R7E, UM Dear Mr. Bruce: Enclosed is the approved application for permit to drill the above referenced exploration well. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, 4°/94 Daniel T. Seamount, Jr. Chair DATED this Z<'" DATED January, 2012. 1 cc: Department of Fish 86 Game, Habitat Section w/o end. (via e-mail) Department of Environmental Conservation w/o end. (via e-mail) STATE OF ALASKA 1 I , / KA OIL AND GAS CONSERVATION COAL ;ION PERMIT TO DRILL j` 20 AAC 25.005 la.Type of Work: lb.Proposed Well Class: Development-Oil El Service- Winj ❑ Single Zone 0 ' lc.c.Specify if well is proposed for: DrillE ` RedrilD Stratigraphic Test ❑ Development-Gas❑ Service-Supply❑ Multiple Zone ❑ Coalbed Gas❑ Gas Hydrates El Re-entry 0 Exploratory D . Service- WAG 0 Service-Disp El Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket m Single Well ❑ 11.Well Name and Number: Pioneer Natural Resources Alaska, Inc. Bond No. 103655283 .: Sikumi -1 3.Address: 700 G Street, Suite 600 6.Proposed Depth: 12.Field/Pool(s): Anchorage,AK 99501 MDss: 8,474' - TVDss: 8,474 j 4a. Location of Well(Govemmental Section): 7.Property Designation(Lease Number): Undefined . Surface: 4581' FSL, 1170' FEL, Sec. 16,T13N, R7E, UMIAT , ADL 355037 Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: 4581' FSL, 1170' FEL, Sec. 16,T13N, R7E, UMIAT 417497 February 23,2012 • Total Depth: 9.Acres in Property: 14.Distance to Nearest Property: 4581' FSL, 1170' FEL, Sec. 16,T13N, R7E, UMIAT 5760 1170 ft 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL: , 32.25 feet 15.Distance to Nearest Well Open Surface: x-459258 y-6027468 • Zone-ASP 4 GL Elevation above MSL: 0 feet to Same Pool: Nikaitchuq is 59,218' Away 16.Deviated wells: Kickoff depth: 0 feet 17.Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: 0 degrees Downhole: 4142 • Surface: 3210 i 18.Casing Program: Specifications Top - Setting Depth - Bottom _ Cement Quantity,c.f.or sacks Hole Casing Weight Grade Coupling Length MD TVD MD ND (including stage data) 1 20" 20" _ 94# H-40 _ Welded 120' _ Surface Surface 120' 120' Driven 16" 13-3/8" 68# L-80 BTC 3021' _ Surface Surface 3021' 3021' 580 sx PF'L';300 sx Class'G' - 12-1/4" 9-5/8" 40# L-80 Hydril 521 6350' Surface Surface 6350' 6350' 560 sx Class'G' , 8-1/2" 7" 26# L-80 BTC-M 1174' 6200' 6200' 7374' 7374' 90 sx Class'G' 6-1/8" 3-1/2" 9.2# L-80 TC-II 8474' t/2 —c�Z/K 8474' 8474' 220 sx Class'G' t,•htr , 19. PRESENT WELL CONDITION SUMMARY(To be completed for Rearm and Re-Entry Operations)/- f'LY•7L Total Depth MD(ft): Total Depth ND(ft): Plugs(measured): Effect.Depth MD(ft): Effect.Depth ND(ft): Junk(measured): Casing Length Size Cement Volume MD TVD _ Conductor/Structural Surface I Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth ND(ft): 20. Attachments: Property Plat ❑ BOP Sketch 8 Drilling Program ' Time v.Depth Plot a 20 Shallow Hazard Analysis LI Diverter Sketch Seabed Report Drilling Fluid ProgramAAC 25.050 requirements 0 21. Verbal Approval: Commission Representative: Date 1/12/2012 22. I hereby certify that the foregoing is true and correct. Contact Dustin Bruce, 343-2173 Prepared By:Kathy Campoamor,343-2183 Printed Name---_— Dustin Bruce Title Exploration Project Engineer Signatur ' '� Phone 343-2173 Date Commission Use Only Permit to Drill API Number: �` Permit ApprQQQv ej See cover letter for other Number: X -, 2_C-- 50- O2„,(_,66V-(121-6 . Date: \ _ " 1 `2 requirements. Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coal ed m,thane,gas hydrates,or gas contained in sh s: DV Other: , ys4 pS S . 60 f /.es Samples req'd: Yes2'z No ❑ Mud log req'd: Ye No❑ , - 2.56 0 10 S� 4 iI it"� 7S f- 6,....i J HZS measures: YesIg No ❑ Directional eq'd: Yes❑ No L� *- 7 . ea, - * ^c%i:4"f i1�37, 6. -,l a'"f a I !az-r Z(: L"2�f7 C',, GS f- �J 0 I.I./Y- a— V S.-p �5-(- ' S • re 3 .9 APPROVED BY THE COMMISSION ZS I Z DATE: COSIGNER RECEIV j ORIGINAL JAN 182012 Auk*Oil&Gas Cans,Cession .Ce0;� Form 10-401(Revised 7/2009) This permit is valid for 24 months from the date of approval(20 AAC 25.005(g)) Submit in Duplicate PIONEER NATURAL RESOURCES ALASKA Pioneer Natural Resources Alaska, Inc. 700 G Street,Suite 600 /ti Anchorage,Alaska 99501 1 Tel: (907)277-2700 Fax:(907)343-2190 CO January 12, 2012 l ceov- RIGH wi�Ids State of Alaska Alaska Oil and Gas Conservation Commission O 333 West 7th Avenue, Suite#100 CNF!OE Anchorage, AK 99501 r'!'� RE: Application for Permit to Drill Sikumi -#1 Surface Location: 4581' FSL, 1170' FEL, Sec 16, T13N, R7E, UMIAT X = 459,258, Y = 6,027,468, ADL025528 LAT: 70°29'09.51" LONG: 150°19'58.74" Pioneer Natural Resources Alaska, Inc. (PNRA) hereby applies for a Permit to Drill an exploration well from an ice pad located in the Northern mouth of the Colville River within section 16, T13N. The well is designed to be a vertical well through the Ivishak to the Kavik formation. As indicated in the attachments, the drilling and well construction program includes the following: • ■ Surface Hole: - Drill 16" to - 3,021' MD /TVD and set 13-3/8" casing. • • Intermediate Hole:. - Drill 12-1/4" to - 6,350' MD /TVD, log, and set 9-5/8" casing. • Drilling Liner: - Drill 8-1/2" to - 7,318' MD/TVD, log, and set 7" drilling liner. ■ Production Hole: - Drill 6-1/8" to - 8,474' MD/TVD, log, and set 3-1/2" Completion liner. • Test: - 3-1/2" Test/fracture stimulation and completion string. Please find attached information as required by 20 AAC 25.005 (a) and (c) for your review. Pertinent information attached to this application includes the following: 1) Form 10-401 Application for Permit to Drill per 20 AAC 25.005 (a). 2) A copy of the proposed drilling program per 20 AAC 25.005 (c) (13) including: a. The drilling fluid program as required by 20 AAC 25.033 Alaska Oil & Gas Conservatic... commission January, 2012 Page 2 of 2 b. Complete logging and mud logging operations are planned and descriptions are attached. c. A complete proposed casing and cementing program is attached as per 20 AAC 25.030. d. A summary of the drilling operations. e. A summary of drilling hazards per 20 AAC 25.005 (c) (4). f. A wellbore schematic is also attached visually depicting the proposed well. 3) A copy of the Planned Directional Well Path - including traveling cylinder and development layout plots. 4) A plat showing the surface location proposed for the well per 20 AAC 25.005 (c) (2). 5) Diagrams and descriptions of the BOP and diverter equipment to be used on Nabors Alaska Rig 27-E as required by 20 AAC 25.035 (b) and (c). 6) A description of the procedure for conducting formation integrity tests per 20 AAC 25.035 (c) (5). 7) PNRA does not anticipate the presence of H2S in the formations to be encountered in this well. However, H2S monitoring equipment as specified in 20 AAC 25.065(1) will be✓ functioning on the rig as standard operating procedure for all wells drilled by that rig. Products for treating H2S contamination in the drilling mud system will be maintained on / location. The following are PNRA's designated contacts for reporting responsibilities to the Commission: 1) Completion Report Vern Johnson, Drilling Superintendent (20 AAC 25.070) 907.343.2111 vern.johnson@pxd.com 2) Geologic Data and Logs Paul Daggett, Senior Staff Geophysicist (20 AAC 25.071) 907.343.2134 paul.daggett@pxd.com The anticipated spud date for this well is February 23, 2012. If you have any questions or require further information, please contact Dustin Bruce at 907.343.2173. Si - ely, CQPiRU4T1AL 41116w4i Dustin Bruce Exploration Project Engineer Attachments: Form 10-401 Supporting Permit Information cc: Sikumi-1 Well File Permit to Drill Well Plan Summary Sikumi #1 04/67114,2012 Winter Ex loration— Ivishak Test t Surface TD 3,021' MID/TVDCONrIoE !TrnL rkb Intermediate TD @ 6,350' MD/ TVDrkb Drilling Liner TD @ 7,374' MD / TVDrkb Production TD @ 8,474' MID/ TV rrkb Surface Location: 4,581'FSL, 1,170' FEL,Sec. 16,T13N,R7E,UMIAT ASP 4(NAD27)projection X=459,258.0 Y=6,027,468.0 Target: Ivishak Sand / 4,581'FSL, 1,170' FEL,Sec. 16,T13N,R7E,UMIAT X=459,258.0 Y=6,027,468.0 Z=7,719' TVDss Bottom Hole Location Sikumi-#1 4,581'FSL, 1,170' FEL,Sec. 16,T13N,R7E,UMIAT X=459,258.0 Y=6,027,468.0 Z=8,318' TVDss AFE Number:021151 Est. Start Date: Feb 23,2012 Rig:Nabors 27-E Operating days: 57 days to Drill,Test,and Abandon Objective&Well Type Ivishak Exploration Well Well Design: Conventional(13-3/8"x 9-5/8"x 7"liner x 3-1/2"liner)Vertical Current Mechanical Condition: Original Ground Elevation 0' (sea level) Well Bay Footing(WBF=Ice Pac Level): O.G.Elev+Ice Pad: 3.0' RKB to Ground Level: 32.25' Rig Elevation: RKB+MSL= 35.25' Conductor: — 120 MDrkb Sikumi -#1 Permit To Drill Page 1 of 21 Well Control: CONFIDENTIAL Well Section Pressure Depth Basis psi TVD 16"Surface Section Maximum 1,351 3,021' Based on seawater gradient of 0.4472 psi/ft anticipated BHP Maximum surface 1,019 Surface Based on BHP and a full column of gas from TD @ 0.11 psi/ft pressure 12-1/4"Intermediate Hole Section Maximum 3,235 6,350' Based on offset experiences and log interpretation(0.51 psi/ft) anticipated BHP Maximum surface 2,537 Surface Based on BHP and a full column of gas from TD @ 0.11 psi/ft pressure 8-1/2"Drilling Liner Hole Section Maximum 3,604 7,374' Based on offset experiences and log interpretation(0.48 psi/ft) anticipated BHP Maximum surface 2,792 Surface Based on BHP and a full column of gas from TD @ 0.11 psi/ft pressure 6-1/8"Production Hole Section al- rf Maximum ,/4,142 8,474' Based on offset experiences and log interpretation(0.48 psi/ft) anticipated BHP Maximum surface 3,210 Surface Based on BHP and a full column of gas from TD @ 0.11 psi/ft pressure Sikumi - #1 Permit To Drill Page 2 of 21 BOP Equipment Test Pressure Basis: CONFIDENTIAL The maximum operating pressures experienced by the Sikumi #1 well will occur during drilling and testing of the Ivishak production interval. The wellhead is designed for 5,000 psi service and the BOPE is designed for 10,000 psi service. Given that the maximum calculated bottom-hole pressure is 4,142 psi, and the MASP based upon a full column of gas from TD @ 0.11 psi/ft,of 3,210 psi;all BOPE will be tested to 4500 psi,as per AOGCC. Maximum casing pressure Test(drilling): 4500 psi @ surface I// Planned BOPE test pressure(drilling): 4500 psi*(annular to 2500 psi) V *Due to 4500 psi casing pressure test Planned test fluid: 10.0— 10.4 ppg Brine Diverter(see attached schematic) — Hydril 21-1/4"x 2,000 psi annular BOP — Two(2),20"hydraulically actuated ball valves — 20"diverter line 10,000 psi BOP stack(see attached schematic): — Shaffer 13-5/8"annular BOP — T3 13-5/8"x 10M psi double ram BOP,double gate,stud x stud w/boost bonnet lower ram — Drilling Spool 13-5/8" 10M psi w/3"x 10M psi and 4"x 10M psi outlets — Spacer Spool 13-5/8" 10M w/(1)3-1/16"x 10M psi and(1)4-1/16" 10M outlets — One(1)3" 10M full opening inner manual gate valves mounted on drilling cross — One(1)4" 10M full opening inner manual gate valves mounted on drilling cross — One(1)3" 10M full opening outer remote hydraulic controlled gate valves mounted on inner gate valves — One(1)4" 10M full opening outer remote hydraulic controlled gate valves mounted on inner gate valves. — T3 13-5/8"x 10M psi double ram BOP,double gate,stud x flange Sikumi -#1 Permit To Drill Page 3 of 21 CON ElOEN Formation Integrity Testing Requirements: Test Point Depth Test Type Minimum EMW 13-3/8"Surface Shoe Rathole+20'to 50' from shoe LOT 12.5 ppg 9-5/8"Intermediate Shoe Rathole+20'to 50' from shoe LOT 12.5 ppg 7"Drilling Liner Shoe Rathole+20'to 50' from shoe LOT 12.5 ppg Casing Shoe Leak-Off/Formation Integrity Test Procedure: 1. After testing BOPE, pick up the drilling assembly and RIH to the float collar. Circulate to consistent mud weight and rheology. 2. Shut in with the pipe rams and test the casing to the required test pressure. Record the volume of mud required and the corresponding pressures in 'A bbl increments. When the design pressure is reached shut in the well and record the shut in pressure for 30 minutes. 3. Bleed off pressure while taking returns to a calibrated tank and record volume recovered. 4. Drill out the shoe track. Drill 20 ft of new hole and circulate the hole clean with consistent mud weight in/out. Pull up into the casing shoe. 5. Perform a Leak Off Test(or Formation Integrity Test): - Calculate the required test pressure to reach leak off(or formation integrity test limit) with the actual mud weight and the estimated fracture EMW. - Plot the casing test data and the calculated leak off on appropriate scale coordinate paper. As a guide, use the data from the casing test to determine the approximate volume of mud required to reach the calculated LOT/FIT. - Shut the well in. R/U the test pump. - Bring the pump on line at 0.25—0.50 bpm.Maintain a constant rate. - Record the pressure for every '/a of a bbl pumped. - Continue pumping until the pressure vs. volume curve breaks over indicating leak off. Note: For FIT,do not take to leak off - Discontinue pumping and shut in the well. Record the shut in pressure in 1 minute increments for 10 minutes or until pressure shows stabilization. - Bleed off the pressure and record the volume of mud recovered. - Plot the data to determine the LOT/FIT pressure at the shoe as EMW. - Submit the test results to the Pioneer drilling engineer for distribution as required. Sikumi - #1 Permit To Drill Page 4 of 21 CONFIDENTIAL Drilling Fluids Program: Surface Mud Properties: 16"hole Spud Mud Interval Density(ppg) Viscosity(secs) YP PV MBT API ml Initial 150—200 35—50 10—25 10—25 Unrestricted Final Q.. 9.2-9._6_„1.}).p 100 25—35 10—25 10—25 < 12 Intermediate Mud Properties: 12-1/4"� hole LSND Interval _ Density(ppg) Viscosity(secs) YP PV MBT API ml Initial to TD 10.5 ppg 40—60 25—35 10-20 <25 4—6 Drilling Liner Mud Properties: 8-1/2"hole LSND Interval _ Density(ppg) Viscosity(secs) YP PV MBT API ml Initial to TD 10.5 ppg 40—60 18—25 10-20 <25 4—6 Test/Production Mud Properties: 6-1/8"hole 6%KCl Baradril-N Interval Viscosity(secs) _ YP PV MBT API ml Initial to TD 9.6 - 10.0 ppg�1 55-80 15-25 15-25 <7 <4 Sikumi - #1 Permit To Drill Page 5 of 21 CONFIDENTIAL Formation Markers: 1MD Subsea Pore Frac Planned Formation Tops (feet) (feet) Press. Gradient MW Comments (ppge) (ppge) (ppg) West Sak 2,089 -2033 8.5 13.7 9.3 J Cret Tuff 2,698 -2642 8.5 13.7 9.5 Base of fluvial sands Hue 2 shale 3,013 -2957 8.5 13.8 9.6 SCP 3,021 -2,965 8.5 13.8 10.5 Top of Upper Confining Brook 2b 4,144 -4,088 8.5 13.7 10.5 ✓ Top Torok 4,892 -4,836 8.5 13.0 10.5 Base Torok 5,058 -5,002 8.5 12.9 10.5 Torok Sh 1 5,324 -5,268 8.5 12.8 10.5 Top HRZ 5,726 -5,670 8.5 12.7 10.5 Base HRZ 5,858 -5,802 8.5 12.6 10.5 Kalubik Mkr 5,907 -5,851 8.5 12.9 10.5 Kup C 5,983 -5,927 9.9 13.3 10.5 LCU(Miluveach) 5,983 -5,927 9.9 13.3 10.5 BCU(Upper Kingak) 6,096 -6,040 9.9 13.3 10.5 Nuiqsut 6,142 -6,086 9.8 13.3 10.5 Nuiq Base 6,259 -6,203 9.8 13.3 10.5 Nechelik 6,270 -6,214 9.8 13.3 10.5 Nechelik Base(Lower Kingak) 6,325 -6,269 9.8 , 13.3 10.5 I ICP1 6,350 -6,294 9.8 13.3 10.5 ICP2 7,374 -7,318 9.4 13.3 10.5 Sag River 7,374 -7,318 9.4 12.5 9.6 Shublik Upr 7,454 -7,398 9.4 12.5 9.6 Shublik Lwr 7,604 -7,548 9.4 12.5 9.7 Ivishak 7,694 -7,638 9.4 12.5 9.7 Ivish Upr • 7,775 -7,719 9.4 12.5 9.7 Ivishak Mid . 8,008 -7,952 9.4 12.5 9.8 Ivishak Lwr ' 8,247 -8,191 9.4 12.5 9.9 Kavik 8,374 -8,318 9.4 12.5 10.0 TD 8,474 -8,418 9.4 ' 13.3 10.0 Sikumi -#1 Permit To Drill Page 6 of 21 CONFIDENTIAL Logging Program: 16" Section: Surface Drilling: Mud Logging(samples collected every 25'to section TD) GR/RES Open Hole(Wireline): N/A Cased Hole: N/A 12-1/4" Section: Intermediate Drilling: Mud Logging(samples collected every 25'to section TD) N/A Open Hole(Wireline): STAR(res)/XMAC(acoustic mechanic properties)/MREX(mag resonance)/RSW Cores/ Seismic Checkshot Cased Hole: N/A 8-1/2" Section: Drilling Liner Drilling: Mud Logging(samples collected every 25'to section TD) • GR(gamma)/EWR(resistivity)/ALD(azimuthal density)/CTN(neutron)/QBAT(sonic) Open Hole(Wireline): STAR(Hi-res resistivity)/XMAC(acoustic mechanic properties) Cased Hole: N/A 6-1/8" Section: Test Interval Drilling: Mud Logging(samples collected every 10'to section TD) GR/EWR/ALD/CTN Open Hole(Wireline): RCI Pressures&Samples(DPC)/STAR/XMAC/RSW Cores • Cased Hole: N/A Sikumi - #1 Permit To Drill Page 7 of 21 CONFIDENTIAL Sikumi#1 Casing Program: Hole Casing/ Weight Grade Conn. Casing Csg/Tbg Top Hole Btm Size Tubing Length(ft) MDrkb(ft) MD/TVDrkb(ft) Driven 20" 94# H-40 Welded 120 Surface 112 16" 13-3/8" 68# L-80 BTC 3,021 Surface 3,021 12-1/4" 9-5/8" 40# L-80 Hydril 521 6,350 Surface 6,350 '.."' 8" 7" . 26# L-80 BTC-M 1,174 6,200 7,374 6-1/8" 3-1/2" 9.2# L-80 TC-II 8,474 Surface 8,474 Casing Properties: Size Weight Grade ID Drift Conn. Internal Collapse Tensile Strength ID Yield (psi) (psi) Conn. Body .✓ 20" 94# H-40 19.124" 18.936" Welded Driven Conductor Casing 13-3/8" 68# L-80 12.415" 12.259" BTC 5,020 2,260 1,545M 1,556 M 9-5/8" 40# L-80 8.835" 8.679" Hydril 521 5,750 3,080 641 M* 916 M 7" 26# L-80 6.276" 6.151" BTC-M 7,240 5,410 641 M 604 M 3-1/2" 9.2# L-80 2.992" 2.867" TC-II 10,160 10,540 207,000 207,000 Disposal: Annular Injection: No Annular Injection Cuttings Handling&Fluid Handling: Drill cuttings and waste fluids will be taken to the appropriate permitted sites on the Kuparuk River Unit,the Pad 3 and DS-4 - GNI facilities in the Prudhoe Bay Unit,and/or the Class 1/Class 2 injection well at ODS in the Oooguruk Unit Sikumi -#1 Permit To Drill Page 8 of 21 Sikumi #1 Cement Calculations: CONF/DENT! 13-3/8" Surface Cement Ops: The slurry design volumes are based on bringing cement to surface and with 500'of fill for the tail cement.Bottom of permafrost is located at 1,800'MD.200%excess is utilized above this point while 30%excess is used below with the use of an inner-string(stab-in)cementer to assure cement to surface.A frac gradient of 12.5 ppg at 3,021'was used with a max ECD shown through simulation of 12.17 ppg. Spacer: Total Spacer = 56.15 ft3 = 10.00 bbl Spacer: Total Spacer = 336.88 ft3 = 60.00 bbl Cement: (2521.00 ft fill) 120.00 ft* 1.019 ft3/ft* 0% = 122.28ft3 1680.00 ft*0.4206 ft3/ft*200% = 2119.65 ft3 721.00 ft*0.4206 ft3/ft* 30% = 394.20 ft3 Total Lead Cement = 2636.14 ft3 = 469.51 bbl Sacks of Cement 579 sk Cement: (500.00 ft fill) 415.00 ft* 0.4206 ft3/ft* 30% = 226.90 ft3 ✓ 85.00 ft*0.4206 ft3/ft*30% = 46.47 ft3 Tail Cement = 273.37 ft3 = 48.69 bbl Shoe Joint Volume:(85.00 ft fill) 85.00 ft*0.8407 ft3/ft = 71.46 ft3 = 12.73 bbl Tail plus shoe joint = 344.82 ft3 n bl Total Tail 292 sk Total Pipe Capacity: 2936.00 ft*0.0997 ft3/ft = 292.79 ft3 85.00 ft*0.8407 ft3/ft = 71.46 ft3 = 64.88 bbl Displacement Volume to Shoe Joint: Capacity of Pipe-Shoe Joint = 64.88 bbl- 12.73 bbl = 52.15 bbl Sikumi - #1 Permit To Drill Page 9 of 21 Surface Cementing Fluids: CONF11jENiJAL Fluid 1:Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 2: Water Based Spacer DUAL SPACER Fluid Density: 10 lbm/gal 45 lbm/bbl Barite(Heavy Weight Additive) Fluid Volume: 60 bbl 0.05 gal/bbl D-AIR 3000L(Defoamer) 0.1 gal/bbl Dual Spacer Mixing Aid EXP(Viscosifier) Fluid 3: Lead Cement Type L,Permafrost Fluid Weight 10.90 lbm/gal Slurry Yield: 4.55 ft3/sk✓ Total Mixing Fluid: 24.40 Gal/sk Top of Fluid: 0 ft Calculated Fill: 2521 ft Volume: 469.51 bbl Calculated Sacks: 579.37 sks Proposed Sacks: 580 sks Fluid 4: Tail Cement Premium Cement Fluid Weight 15.80 lbm/gal 94 lbm/sk Premium Cement(Cement) Slurry Yield: 1.18 ft3/sk ✓ 2% Calcium Chloride Pellets(Accelerator) Total Mixing Fluid: 5.18 Gal/sk 0.2% CFR-3 (Dispersant) Top of Fluid: 2521 ft Calculated Fill: 500 ft Volume: 61.42 bbl Calculated Sacks: 292.22 sks Proposed Sacks: 300 sks Fluid 5: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 6:Mud Mud Displacement Fluid Density: 9.50 lbm/gal Fluid Volume 42.15 bbl n•1 n. r m r •ll r_ _ _ In _ CCI 9-5/8" Intermediate Cement Ops: CO i l'-I_, •.. .,.1 k Discussion The slurry design volumes are based on 30%excess with cement brought 500'MD above the top of the Torok located at 4,850' MD.A frac gradient of 12.5 ppg at 6,350'was used with a max ECD shown through simulation of 12.26 ppg. Spacer: 137.90ft * 0.3132ft3/ft * 30% = 56.15 ft3 Total Spacer = 56.15 ft3 = 10.00 bbl Spacer: 827.41 ft * 0.3132ft3/ft * 30% = 336.88ft3 Total Spacer = 336.88 ft3 = 60.00 bbl Cement : (1000.00 ft fill) 1000.00 ft * 0.3132 ft3/ft * 30% = 407.14 ft3 Total Lead Cement = 407.14 ft3 = 72.52 bbl Sacks of Cement = 168 sks Cement : (1000.00 ft fill) 1000.00 ft* 0.3132 ft3/ft * 30 % = 407.14ft3 Tail Cement = 407.14 ft3 = 72.52 bbl V Shoe Joint Volume: (85.00 ft fill) 85.00 ft* 0.4257 ft3/ft = 36.19 ft3 = 6.45 bbl Tail plus shoe joint = 443.33 ft3 = 78.96 bbl Total Tail = 386 sks Total Pipe Capacity: 6350.00 ft* 0.4257 ft3/ft = 2703.42 ft3 = 481.50 bbl Displacement Volume to Shoe Joint: Capacity of Pipe- Shoe Joint = 481.50 bbl-6.45 bbl = 475.05 bbl Sikumi -#1 Permit To Drill Page 11 of 21 Intermediate Cementing tiliN1-11101-4.7 41 It, Fluid 1: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 2: Water Based Spacer DUAL SPACER Fluid Density: 11.50 lbm/gal 133.5 lbm/bblBarite(Heavy Weight Additive) Fluid Volume: 60 bbl 0.05 gal/bbl D-AIR 3000L(Defoamer) 0.1 gal/bbl Dual Spacer Mixing Aid EXP(Viscosifier) Fluid 3: Lead Cement Premium Cement Fluid Weight 12.50 lbm/gal 94 lbm/sk Premium Cement(Cement) Slurry Yield: 2.43 ft3/sk ✓ 15 lbm/sk Microlite(Light Weight Additive) Total Mixing Fluid: 13.69 Gal/sk 0.75 % Halad(R)-344(Low Fluid Loss Control) Top of Fluid: 4350 ft 0.2% CFR-3 (Dispersant) Calculated Fill: 1000 ft 0.15 lbm/sk Halliburton EZ-FLO(Bulk Flow Enhancer) Volume: 72.52 bbl 0.25 % SCR-100(Retarder) Calculated Sacks: 167.55 sks Proposed Sacks: 170 sks Fluid 4: Tail Cement Premium Cement Fluid Weight 15.80 lbm/gal 94 lbm/sk Premium Cement(Cement) Slurry Yield: 1.15 ft3/sk 0.6% Halad(R)-344(Low Fluid Loss Control) Total Mixing Fluid: 4.97 Gal/sk 0.3 % SCR-100(Retarder) Top of Fluid: 5350 ft 0.1 % CFR-3 (Dispersant) Calculated Fill: 1000 ft Volume: 78.96 bbl Calculated Sacks: 385.51 sks Proposed Sacks: 390 sks Fluid 5: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 6: Mud Mud Displacement Fluid Density: 10.50 lbm/gal Fluid Volume465.05 bbl Sikumi - #1 Permit To Drill Page 12 of 21 7" Drilling Liner Cement Ops: Gil Discussion 1 1. 11 The slurry design volumes are based on 30%excess and 500' of fill.A frac gradient of 14 ppg at 7,374'was used with a max ECD shown through simulation of 12.02 ppg. Spacer: 194.02ft * 0.2894ft3/ft * 0% = 56.15 ft3 Total Spacer = 56.15 ft3 = 10.00 bbl Spacer: 1164.12 ft* 0.2894 ft3/ft * 0% = 336.88 ft3 Total Spacer = 60.00 bbl Cement : (1174.00 ft fill) 150.00ft * 0.1585ft3/ft * 30% = 23.77 ft3 1024.00 ft* 0.1268 ft3/ft* 30% = 168.81 ft3 Tail Cement = 192.58 ft3 = 34.30 bbl Shoe Joint Volume: (85.00 ft fill) 85.00 ft * 0.2148 ft3/ft = 18.26 ft3 = 3.25 bbl Tail plus shoe joint = 210.84 ft3 = 37.55 bbl Total Tail = 183 sks Total Pipe Capacity: 6200.00 ft* 0.0997 ft3/ft = 618.29 ft3 1174.00 ft* 0.2148 ft3/ft = 252.21 ft3 = 155.04 bbl Displacement Volume to Shoe Joint: Capacity of Pipe- Shoe Joint = 155.04 bbl-3.25 bbl = 151.79 bbl Sikumi - #1 Permit To Drill Page 13 of 21 Drilling Liner Cement Fluids: t a t Fluid 1: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 2: Water Based Spacer DUAL SPACER Fluid Density: 12.50 lbm/gal 192 lbm/bbl Barite(Heavy Weight Additive) Fluid Volume: 60 bbl 0.05 gal/bbl D-AIR 3000L(Defoamer) 0.1 gal/bbl Dual Spacer Mixing Aid EXP(Viscosifier) Fluid 3: Tail Cement Premium Cement Fluid Weight 15.80 lbm/gal 94 lbm/sk Premium Cement(Cement) Slurry Yield: 1.15 ft3/sk v 0.3 % Halad(R)-344(Low Fluid Loss Control) Total Mixing Fluid: 4.97 Gal/sk 0.3 % Halad(R)-413 (Low Fluid Loss Control) Top of Fluid: 6200 ft 0.35 % SCR-100(Retarder) Calculated Fill: 1174 ft 0.1 % CFR-3 (Dispersant) Volume: 37.55 bbl Calculated Sacks: 183.34 sks Proposed Sacks: 19 Fluid 4: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 5: Mud Mud Displacement Fluid Density: 10.50 lbm/gal Fluid Volume 141.79 bbl Sikumi -#1 Permit To Drill Page 14 of 21 3-1/2" Production Liner Cement Ops: aY p LICJW Discussion The slurry design volumes are based on 30%excess and bringing cement-200'MD above the top of the liner hanger located at 7,224'MD. A frac gradient of 12 ppg at 8,474'was used with a max ECD shown through simulation of 11.72 ppg. Spacer: 165.88 ft * 0.3385 ft3/ft * 0% = 56.15 ft3 Total Spacer = 56.15 ft3 = 10.00 bbl Spacer: 187.1Oft* 0.3385ft3/ft * 0% = 63.33 ft3 150.00 ft* 0.1276 ft3/ft * 0% = 19.13 ft3 674.00 ft* 0.1276 ft3/ft * 0% = 85.98ft3 Total Spacer = 168.44 ft3 = 30.00 bbl Cement : (1450.00 ft fill) 200.00 ft* 0.1276 ft3/ft * 0% = 25.51 ft3 150.00 ft* 0.148 ft3/ft* 0% = 22.20 ft3 1100.00ft* 0.1378ft3/ft* 30% = 197.06ft3 Tail Cement = 244.77 ft3 = 43.60 bbl Shoe Joint Volume: (85.00 ft fill) 85.00 ft* 0.0488 ft3/ft = 4.15 ft3 = 0.74 bbl Tail plus shoe joint = 248.92 ft3 = 44.33 bbl Total Tail = 216 sks Total Pipe Capacity: 4724.00 ft* 0.0997 ft3/ft = 471.10 ft3 2500.00 ft * 0.0668 ft3/ft = 167.03 ft3 1250.00 ft * 0.0488 ft3/ft = 61.03 ft3 = 124.53 bbl Displacement Volume to Shoe Joint: Capacity of Pipe- Shoe Joint = 124.53 bbl-0.74 bbl = 123.79 bbl Sikumi - #1 Permit To Drill Page 15 of 21 Production Liner Cement Fluids: Le•Litt( Fluid 1: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 2: Water Based Spacer DUAL SPACER Fluid Density: 12.50 lbm/gal 192 lbm/bbl Barite(Heavy Weight Additive) Fluid Volume: 30 bbl 0.05 gal/bbl D-AIR 3000L(Defoamer) 0.1 gal/bbl Dual Spacer Mixing Aid EXP(Viscosifier) Fluid 3: Tail Cement Premium Cement Fluid Weight 15.80 lbm/gal 94 lbm/sk Premium Cement(Cement) Slurry Yield: 1.15 ft3/sk ✓ 0.3 % Halad(R)-344(Low Fluid Loss Control) Total Mixing Fluid: 4.97 Gal/sk 0.3 % Halad(R)-413 (Low Fluid Loss Control) Top of Fluid: 7024 ft 0.35 % SCR-100(Retarder) Calculated Fill: 1450 ft 0.1 % CFR-3 (Dispersant) Volume: 44.33 bbl Calculated Sacks: 216.45 sks Proposed Sacks: 220 sks Fluid 4: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 5: Mud Mud Displacement Fluid Density: 9.60 lbm/gal Fluid Volume 113.79 bbl Sikumi -#1 Permit To Drill Page 16 of 21 Grit Drilling Plans/Discussion/Hazards: f r- a�1 1•l a` f n,d a 1I _ Surface Hole,120' to 3,021'MD/TVD: The Sikumi pad is located offshore in State of Alaska waters, in the Northern mouth of the Colville River, approximately two (2)miles southwest of the Pioneer Oooguruk Drill Site. Colville Delta#1 (within 1.5 miles of Sikumi#1)was drilled with no ;/ indication of shallow gas, hydrates, or shallow formation instability. A NE-SW seismic traverse conducted through the Colville Delta#1,the proposed wellbore for Sikumi#1, and Kalubik#1, also show no indications of shallow drilling hazards. ,i The surface interval will be drilled with fresh water based Spud mud at± 9.6 ppg for primary well control. Secondary well control will consist of a 21-1/4"x 2000 psi Diverter assembly installed on the 20"conductor. All drilling,tripping, and casing operations will be conducted in accordance with Pioneer Natural Resources and Nabors Alaska Drilling standard drilling operations procedures. These practices will maximize wellbore competence and minimize swab, surge and equivalent circulating density(ECD). Surface casing will be set at±3,021' MD in the Hue shale. The casing will be cemented to surface utilizing inner-string cementing technology. Intermediate Hole,3,021'to 6,350'MD/TVD: For surface pressure control,an 13-5/8"x 10,000 psi BOP will be installed on the surface casing and tested prior to drilling out of the surface casing. A 12-1/4" hole will then be drilled to—6,350' MD,through the Torok, Kalubik,Nuiqsut formations to the Intermediate Casing Point(ICP)in the base of the Nechelik.To accommodate reservoir evaluation throughout this interval, open hole logs and rotary sidewall coring will be collected. While coring and logging, standard well control practices will be utilized. This intermediate interval of the Colville Delta#1 and Kalubik#1 offsets did not indicate the presence of abnormal pressures. Via the Oooguruk 3D seismic survey, two faults are expected to intersect the proposed Sikumi #1 wellbore in the Torok (— 5,500') and in the Nechelik (— 6,150') formations. It is expected that neither fault will present any issues. Primary well control will be maintained with freshwater based LSND mud at ± 10.5 to 11.0 ppg through the Intermediate hole section.• Intermediate casing will be set at±6,350' MD in the Nechelik shale.The casing will be cemented to 500' above the Torok. Drilling Liner Hole,6,350' to 7,374'MD/TVD: Sequentially, the 8-1/2" Intermediate hole will drill through the remaining Kingak formation to a TD depth of 7,374' MD. Open hole logs will be obtained for analysis. Data from offset wells and seismic velocities at the proposed Sikumi#1 wellbore, which compare favorably with the Colville Delta #1 velocities, indicate no drilling hazards and normal reservoir pressures. - Primary well control will be maintained with freshwater based LSND mud at± 10.5 to 11.0 ppg. Secondary well control will be accomplished using the installed 13-5/8"x 10,000 psi BOP. Production Hole,7,374'to 8,474'MD/TVD: An 6-1/8"production interval will be drilled from 7,374' to 8,474' MD through the target Ivishak formation and into the Kavik formation. An 3-1/2" 9.2#L-80 completion liner will be run and cemented entirely. As mentioned above in regards to offset data and velocity analysis, no apparent drilling hazards and normal reservoir pressures were exhibited in either the Colville Delta#1 or the Kalubik#1 thru the proposed Sikumi#1 TD. Primary well control will be maintained with an 6%KC1 based LSND mud at±9.3—10.0 ppg. Secondary well control will be accomplished using the installed 13-5/8"x 10,000 psi BOP. ��' If a discovery of hydrocarbons occurs and time allows, flow testing and pressure build-up tests will be used to determine .pt- formation properties and estimate the commerciality of the accumulation(s). A reservoir stimulation may be performed in the 1 form of an acid or fracture treatment. The flow periods and any stimulation will be determined in response to analysis of initial 9 '�\,`tog data, any initial flow data, pressure transient data, reservoir fluid properties, and ice time. The well will be flowed to �`,), ii. b temporary surface production facilities consisting of gas and solid separation and fluid storage tanks. Produced fluids will be trucked to existing production facilities during and following completion of the flow testing operations.Additional prospective intervals may be tested as described above or may be commingled with the previously tested intervals. If commingling is _ 5)(`', chosen,production logging may be performed during the flow test to determine the productivity of the individual zones. Sikumi - #1 Permit To Drill Page 17 of 21 Intermediate Casing String ";;°e d of ni- ne intermediate casing will be set in the Nechelik Base /Lower Kingak at— 6,350' MD/TVD. Pioneer and Nabors drilling and well control standard procedures will be utilized throughout the interval. Hydrogen Sulfide Hazards Although the Sikumi drill site is not designated as an H2S site,Pioneer Natural Resources and Nabors Alaska Drilling standard operating procedures for H2S precautions will be followed at all times.Drilling fluid additives for controlling mud properties in the event of Hydrogen Sulfide contamination will be maintained on site. Hydrates and Shallow Gas Hazards An 460' interval of elevated Cl was detected in the Kalubik#1 well (1.45 mile away from the planned Sikumi #1 wellbore) with a base at 1,617 ftss. Although this has been interpreted as a possible hydrate interval, there was neither free gas / encountered nor any operational drilling issues that occurred. No other wells bracketing the proposed location have any evidence of hydrates. The seismic indicates that this interval thins in the direction of the Sikumi location, and this seismic interval thins to less than 100 ft. For the purposes of well planning,a possible hydrate interval should be planned for,although . it is not likely to affect drilling operations. There are no other seismic indicators of free gas in the upper part of this section within 2,000 ft.of the well location. Lost Circulation Hazards The fracture gradients of the formations to be penetrated are sufficient to withstand the pressures exerted on them while drilling and installing casing. The formations to be penetrated are expected to have relatively low permeability and fluid loss is not expected to be significant. Drilling fluid rheology, solids concentration, and flow rates will be balanced to minimize filter-cake build up, minimize ECD, and maximize hole cleaning. Drilling and casing running practices will focus on minimizing swab and surge pressures and ECD. Contingency mud materials for lost circulation and wellbore stability will be maintained at the Sikumi#1 location. Stuck Pipe Hazards The potential for differentially stuck pipe in this well is minimal above the Kingak formation but must be closely monitored throughout Kingak section and remaining sections of the well,as these formations reactivity and stability tendencies tend to be ' time dependent. As described above, proper hole cleaning and mud maintenance will minimize the incidence of differential sticking. There is a low potential wellbore constriction due to swelling shales. This tendency will be controlled by the use of an inhibited brine mud system. Wellbore Breathing Hazards Wellbore breathing or ballooning has been well documented across the North Slope over the intervals intended to be drilled for reservoir evaluation in this well. Control of ECD's and minimizing the amount of swab and surge to the formation is critical to reduce the chances of wellbore breathing. Should breathing be encountered,proper well control procedures and evaluation will be activated as outlined in the Pioneer Wellbore Breathing Control Procedure. Fault Hazards The current interpretation of the Oooguruk 3D seismic survey shows there are some elevated amplitudes near the Colville Delta#1 well that occur in the vicinity of an interpreted fault that extends from the base of the permafrost into the Cretaceous section. There were no significant hydrocarbons detected at the base of the permafrost in the Colville Delta#1 well. Although some growth faults associated with deposition of the Sagavanirktok formation may be present in the shallow, poorly consolidated sediments, there do not appear to be any major faults extending into the Torok within 2,000' of the proposed / Sikumi#1 wellbore. Intermediate Casing String Analysis of nearby well data as well as seismic velocities indicates that the Sikumi #1 well will penetrate a normally v pressurized section from surface to TD. Mud log and sonic log data from Colville Delta#1,and Kalubik#1 indicate that these wells were normally pressured. The seismic velocities near the location of Sikumi #1 suggest this well should be similarly pressured. Sikumi - #1 Permit To Drill Page 18 of 21 Pioneer Natural Resources Well Plan Summary Drilling Operations Pre-Rie Work: 1. Drive 20"Conductor 2. Nipple up spacer spools,riser,and starter head. 3. MIRU Nabors 27-E / /p K 'Af)P r) Rie Activity: Drill and Complete 1. NU Diverter. Function test Diverter-Notify AOGCC 48 hours in advance of test. 2. MU 16"BHA. Drill surface hole to the casing point,making wiper trips as necessary. Circulate and condition the hole to run casing. POOH. 3. Run 13-3/8"surface casing and cement with inner-string.Bump dart with 500 to 1,000 psi over fmal displacement pressure. Bleed off pressure and check floats. 4. Ensure floats are holding. WOC if needed. 5. ND Diverter,NU Drilling Spool and BOPE. Test BOPE to 250/4500 psi-Notify AOGCC 48 hours in advance of test. 6. MU 12-1/4"bit on BHA,Motor,&MWD/LWD. d f.,,, f"/3 7. Test the 13-3/8"casing to 2,500 psi for 30 minutes prior to Billing out shoe. Displace Spud mud with 10.5 ppg Baroid LSND. Proceed with DO once drilling fluid is fully displaced and conditioned. 8. Drill through surface shoe,rathole+20'-50' of new hole and perform LOT to a minimum of 12.5 ppge. 9. Drill Intermediate section to TD. C&C mud for logs. 10. Log and rotary side-wall core Intermediate hole section. 11. Change one set of pipe rams to 9-5/8"and test BOPE as required. ✓ 12. Run and cement the 9-5/8"40.7#L-80 Hydril 521 intermediate casing. 13. Bump the plug and bring the pressure up to 3,500 psi-hold for 5 minute pressure test. Release pressure and ensure floats are holding. 14. Bullhead corrosion inhibited brine or diesel down the 13-3/8"x 9-5/8"annulus to freeze protect the well to-2,000' TVD 15. MU 8-1/2"bit on BHA,Motor,&MWD/LWD. 1t 16. Test the 9-5/8"casing to 3,500 psi for 30 minutes prior to drilling out shoe. Circulate and condition LSND drilling fluid. Proceed with DO once drilling fluid is fully conditioned and weighted. 17. Drill through intermediate shoe track,rathole+20'-50' of new hole and perform LOT to a minimum of 12.5 ppge. 18. Drill 8-1/2"section to TD.C&C mud for logs. 19. Log 8-1/2"Drilling Liner hole section. 20. Change one set of pipe rams to 7"and test BOPE as required. 21. Run and cement the 7"26#L-80 BTC-M liner. 22. Bump plug and ensure floats are holding. 23. PU 4"DP as needed to TD production hole section.Run tapered drill string with-200' of 4"DP above 7"liner top. 24. Change pipe rams to VBR 2-7/8"x 5"and test BOPE to 250/4500 psi-Notify AOGCC 48 hours in advance of test. 25. Pressure test casing to 3,500 psi-chart and hold for 30 minute pressure. 26. MU 6-1/8"bit on 4-3/4"BHA,MWD/LWD/BatSonic drilling assembly on 4"x 5"DP and TIH. 27. Displace to drill-in-fluid 6%KC1 Baradril for production lateral. � a L. 28. Drill through 7"liner shoe track. 29. Drill rathole+20'-50' of new hole and perform LOT to a minimum of 12.5 ppge. 30. Drill 6-1/8"production hole to TD. 31. Circulate and condition hole to run logs. Sikumi - #1 Permit To Drill Page 19 of 21 32. Log 6-1/8"Production hole section. 33. TIH to TD,circulate and condition mud to run liner.TOOH laying down DP. 34. Run and cement 3-1/2"9.2#L-80 TC-II slick completion liner. 35. Bump plug and hold 3,500 psi on casing for 5 minutes,ensure floats are holding,TOOH. 36. Run 3-1/2"dual purpose fracture stimulation completion string to top of 3-1/2"liner and sting into seal bore. 37. Test 3-1/2"casing to 3,500 psi for 30 minutes. 38. Pressure test 7"x 3-1/2"annulus toCchart and hold for 30 minute pressure.,Send chart to ODE. 39. ND BOPE,NU&test tree to 4,500 psi. p S� r 40. RDMO / 2,4. (214./2- Post zy•izPost Rig Activity: Formation Tests 41. RIH with Wireline to Lower Ivishak.Perforate and test. 5 42. Test stimulation(as discussion in Production Hole drilling plans above): t 43. After test,RIH with CT set cement plug across Lower Ivishak(plug to cover entire interval dictated by logs). s `� - 44. RIH with Wireline and tag cement plug.PU to Middle Ivishak.Perforate and test. 45. RIH with CT set cement plug across Middle Ivishak.POOH(plug to cover entire interval dictated by logs). 46. RIH with Wireline and tag cement plug.PU to Upper Ivishak.Perforate and test. 47. RIH with CT set cement plug across Upper Ivishak.POOH(plug to cover entire interval dictated by logs). 48. RIH with Wireline and tag cement plug.PU to Sag River.Perforate and test. P 49. RIH with CT set cement plug across Sag River.POOH(plug to cover entire interval dictated by logs). *eco 50. RIH with Wireline and tag upper most cement plug.PU to bottom of 7"and Perforate. 51. RIH with CT,pump/inject cement into 7"x 3-1/2"annulus and in 3-1/2"to 9-5/8"shoe.POOH. 52. RIH with Wireline and tag upper most cement plug.PU to-3,400' and Perforate. 53. RIH with CT,pump/inject cement into 9-5/8"x 3-1/2"annulus and in 3-1/2"to 3,300'.POOH. 54. RIH with Wireline and tag upper most cement plug.PU to- 200' and Perforate. 55. RIH with CT,pump/inject cement into 9-5/8"x 3-1/2"annulus and in 3-1/2"to- 50'.POOH. 56. RIH with Wireline and Tag upper most cement plug.PU and cut 20", 13-3/8",9-5/8",3-1/2"casing strings minimum of 6' below mud line. 57. RDMO Sikumi - #1 Permit To Drill Page 20 of 21 Sikumi#1 Drilling Hazards and Contingencies COIVFJ'� POST THIS NOTICE IN THE DOGHOUSE r ` �► ! int Well Control — Prior to drilling into the Torok, Kup C to ICP,and Sag River to TD,hold a pre-reservoir meeting to outline heightened awareness for kick detection and lost circulation. Hydrates and Shallow gas — No hydrates are expected in this area. Lost Circulation/Breathing/Formation Stability/Stuck Pipe Events — Breathing may be seen while drilling the Hue shale. Minimizing swab and surge on the formation is critical to reducing the impact of breathing in the wellbore. Breathing was seen in the ODSN-40 well,but only after substantial time in trying to solve the lost circulation problems in the fault seen in and below the Torok Sands. — During the attempt to retrieve a fish from the ODSK-33 well,an un-centralized BHA got stuck from differential sticking across the Torok due to the increase in mud weight needed to hold back the shales below. Differential sticking indications were not noted with the drilling BHA and drill pipe. Kick Tolerance/Integrity Testing Kick Tolerance/Integrity Testing Summary Table Casing set/Interval Maximum Influx Volume Mud Weight Expected Min LOT/FIT Pore Press Max Kick Tolerance Max Shut-in Kick Circ Influx to Shoe Tolerance 13-3/8"Surface/ 50.7 bbl 80.5 bbl 10.5 ppg 3,236 12.5 ppg(LOT) 12-1/4"Intermediate 9-5/8" Intermediate/ 72.9 bbl 67.0 bbl 10.5 ppg 3,604 12.5 ppg(LOT) 8"Drilling Liner 7"Drilling Liner/ 54.5 bbl 48.7 bbl 9.6— 10.0 ppg 4,142 12.5 ppg(LOT) 6-1/8"Production NOTE: All LOT/FIT will be taken with a minimum of 20-ft and a maximum of 50-ft of new hole drilled outside of the previous casing string Hydrogen Sulfide — The Sikumi Drill Site is not designated as an H2S site,however Standard Operating Procedures for H2S precautions should be followed at all times. Faults — Per the Oooguruk 3D seismic survey,no shallow fault are expected to intersect with the proposed Sikumi#1 wellbore Sikumi - #1 Permit To Drill Page 21 of 21 REV DATE BY CK APP DESCRIPTION REV DATE BY APP DESCRIPTION ODs a[ [ w NOTES,_ 1. GRID AND GEODETIC COORDINATES ARE ALASKA STATE _ PLANE, ZONE 4, NAD 27. 2. BASIS OF HORIZONTAL & VERTICAL LOCATION IS NUNA ! ` „, MONUMENTATION PER LOUNSBURY & ASSOC.. e THIS 3. SIKUMI DRILL POINT WAS ESTABLISHED USING RTK GPS. 4. ELEVATIONS ARE B.P.M.S.L. • . . ,-” 5. SCALE FACTOR IS 0.999901931. " " " 6. WELL IS LOCATED WITHIN PROTRACTED SECTION 16, _ T13N, R7E, UMIAT MERIDIAN. [ COE (ce.0 w . " �, °t 7. DATE OF SURVEY: 01/10/12, FIELD BOOK L12-01 �'•-4G,,¢ `:" :,'' s < `v J a pp45. f [ ---° 1 ...1"'-' t42".: I T_ A,N' - itb,`-' KALhJeiK '> 1 ,,,:n=7,4,-Y-�4s% I t DS 13N -. 'i. 0 "'� N :74 '' r 6 OS}3S L ' ES-3A r� tt- '•:,1 ?, r' TATE_1‘ --._ �f ..tY.. VICINITY MAP SCALE: 1"=800' 1"=3 MILES CONDUCTOR IS LOCATED IN PROTRACTED SECTION 16, T. 13 N., R. 7 E. ASP COORDINATES GEODETIC SECTION OFFSET ELEVATIONS WELL ID eYe 'X' LATITUDE LONGITUDE F.N.L. F.E.L. 0.G. ICE PAD SIKUMI 6,027,468.0 459,258.0 70' 29' 09.51" 150' 19' 58.74" 698' 1170' —0.2 N/A 9 10 LE .END y 16 15 ,�l� Section Corner 1 T13N., R7E. ® AS—STAKED CONDUCTOR LOCATION /sO I. SIKUMI 0 e -Iy IF co4 114 44- 04- CONF/DENL Oft/ , „ ,, q1flAF .9LOUNSBURY & ASSOCIATES, INC. SURVEYORS ENGINEERS PLANNERS AREA: MODULE:XXXX UNIT: Pioneer Natural Resources SIKUMI Alaska, Inc[ EXPLORATORY WELL CONDUCTOR AS—STAKED LOCATION CADD FILE N0. DRAWING NO: PART: REV: LK690D12 1/11/12 NSK 6.90—d12 OF o 1 Sikumi #1 Drilling & Test Schematic IWellCO°N8F(B61EIN1111111A/14 Head: 13-3/8" 5K VetcoGray Tree: 4-1/16"Flange,5K,Horizontalo1. [0! Casin• /Tubin• Item# Item MD ft ND ft A 20"94#H40 Conductor: 19.124"ID 18.936"Drift -120 -120 B a llijailaig:3 ffejUa11mU.lU.>�711ate . 3,021 3,021 r C 9-5/8"40#L-80 H dril 521 8.835"ID 8.679"Drift : 12-1/4" 6,350 6,350 ©' D 7"26#L-80 BTC-M Liner 6.276"ID 6.151"Drift : 8-1/2" 7,374 7,374 C / E -1/ •. # -:1 ' -I om• trim P•1C211IN ►.Li1r1I1Eiii'll' 7,205 7,205 133 F 3-1/2"9.3#L-80 TC-1I Liner 2.992"ID,2.867"Drift : 6-1/8" 8,474 8,474 U• •er Com•letion __-_. ___, 500Cement'above MO. " �orol� 1 VetcoGra Tubin:Han_er Cosmo Model 0 0 2 GLM#1 Brou-1A GLM 3-1/2"x 1" 3 200 3 200 ire'/"LO'!Z 3 GLM#2 Brou-1A GLM 3-1/2"x 1" 6,400 6,400 O S 4 3-1/2"XN N'..le, 3.725" ID Novo 6,500 6,500 k /g 5 3-1/2"ROC Gauze and Carrier 7,050 7,050 O 6 3-1/2"Ratchetin:Muleshoe 7,210 Lower Corn.letion Item# Item MD ft ND ft jC)_ 7 ZXP Flex III Liner To• Pkr w/Tie Back Sleeve 10ft 7,214 7,214 (D) It, Test#4:Sag River @ 7,374' ___- — Test#3:Upper Ivishak @ 7,775' Test#2:Middle Ivishak @ 8,008' Test#1:Lower Ivishak @ 8,247' PIONEER Date: Revision By: Comments Early 9 6 2011 DBB Draft Wellbore Schematic NATURAL RESOURCES ALASKA 12-5-11 DBB Completion String Update Sikumi #1 Well Schematic oikumi #1 P&A Schematic Well Head: 13-3/8",5K,VetcoGray 0/9/61/1/4/Tree: 4-1/16"Flange,5K,Horizontal Down Squeeze CONF/DEN TIAL ::�ic©-1 .. .. ............. . ...:::: ::.:•:•,.. :::.:..:. Casing/Tubing Item# Item MD(ft) TVD (ft) A 20"94#H40 Conductor: 19.124" ID (18.936"Drift) –120 –120 B 13-3/8"68#L-80 BTC (12.25" ID,12.25" Drift): 16" 3021 3021 3 C 9-5/8"40#L-80 Hydril 521 (8.835" ID, 8.679" Drift): 12-1/4" 6350 6350 D 7"26#L-80 BTC-M Liner(6.276" ID, 6.151" Drift): 8-1/2" 7374 7374 O E 3-1/2" 9.3#L-80 TC-II Comp String (2.992" ID, 2.867" Drift) 7,205 7,205 F 3-1/2" 9.3#L-80 TC-Il Liner 2.992" ID, 2.867" Drift : 6-1/8" 8474 8474 Cement .. 500'above —► Item# Item „ MD (ft) TVD (ft) Kuparuk 1 VetcoGray Tubing Hanger(Cosmo Model) 0 0 2 GLM#1 Brou-1A GLM 3-1/2"x 1" 3,200 3,200 '-' 3 GLM#2 Brou-1A GLM 3-1/2"x 1" 6,400 6,400 Oc 4 3-1/2"XN Nipple, 3.725" ID Nogo 6,500 6,500 5 3-1/2"ROC Gauge and Carrier 7,050 7,050 `i :•' 1 6 3-1/2"Ratcheting Muleshoe 7,210 7,210 Lower Completion • �0tItem#!Item IMD (ft)ITVD (ft) iiiiii 7 ZXP Flex III Liner Top Pkr w/Tie Back Sleeve loft 7,214 7,214 0 PIONEER Date: Revision By: Comments Early 9-6-2011 DBB Draft Wellbore Schematic NATURAL RESOURCES ALASKA 12-5-11 DBB Completion String Update Sikumi #1 Well Schematic coNR ONF/fiEfl4L1 1 1 1 1 1 ... 1 .. ► ► ► L ► ► . ______ 1_.. _ 0 1 1 0 Loci____[..... ______ _ _ 1 1 1 __ __ 1 . . _c a ► 00 0:11 ? C U Lal Q to O C Q 4- "O -0 . . O ID C C to VI 1 In 01 map C /` _0 0J CO f0 Q >. O 0 _ _ O CC _ N kp ct 0 a 0 + t0 4.1 w p _ Q O X \II - m W Y N• CO ea - • t "0 •NW 9 c L 0 C O rsi •. to L. Y ; ► F _ ITi - 8 O O O O 0 OOO OOOOOO O O O O �O O LIDO W 00 r-I (4)y;daa r Sikumi #1 Predicted Pressure vs. Depth Pressure, PPGE eoN/c/DENT! 8 9 10 15 [47/24 1•• !1 • I I ---Estimated Pore Pressure 1 . I 1 1 • I 1,000 1 • 1 1 • ; I I • •• Planned Mud Weight ei I • I 0 II • ; I • I II Estimated Frac Pressure • I 1 2,000 • - - 1 • 1 • 1 • ; I West Sak • I • 1 • I I • ./ 1 3,000 A , • _ _ _ i . 1 • —d—SCP(16" Hole,13-3/8" • Casing) • • • I_ • I Top Torok • 0 • i 2 4,000 • Si• / fl. f / Top HRZ 0) • ! / CI • / • / ' • i 5,000 - - • ! I Ku p C • I: i • I • I , • I I • I Nuiqsut •• } • 6,000 - --- , - I ".1`s I • ,}_,i I • Ir.ICP1(12-1/4"Hole,9- lb'- • I A 5/8"Casing) • I • tICP2(8-1/2" Hole,7" 7,000 - • ! Liner),Sag River • • _ • _ I • • I • Ivishak 1 • I • • 8,000 $ • 4 I I • Kavik I • I 1 CONR h PIONEER iuCiVrk NATURAL RESOURCES Pioneer Natural Resources Alaska 700 G Street Suite 600 Anchorage, AK 99501 Sikumi 1 Alaska United States of America API/UWI TBD Multi String Cement Recommendation Prepared for: Mr. Dustin Bruce January 16, 2012 Version: 2 • TOC on 7" Intermediate Liner changed from 6,874' (500' of fill) to the liner top at 6,200' (1,174' of fill). Submitted by: Jeremy Talarovich Halliburton 6900 Arctic Blvd Anchorage, Alaska 99518 HALLIBURTON 907.275.2635 Proposal 298136 v.2 i L..,U.Ui\'t HALLIBURTON Halliburton appreciates the opportunity to present this cost estimate and looks forward to being of service to you. Foreword Enclosed is our cost estimate for cementing the casing strings in the referenced well. The information in this cost estimate includes well data, calculations, materials requirements, and cost estimates. This cost estimate is based on information from you the customer, our field personnel, and previous cementing services in the area. The selection and use of non-Halliburton plugs and casing attachments can compromise and may jeopardize the overall objective for effective zonal isolation. Furthermore, Halliburton is not involved in the design, manufacture or use of plugs and casing attachments supplied by other manufacturers and assumes no liability for their installation and operation. For this reason we recommend Halliburton plugs and casing attachments be used when Halliburton performs any zonal isolation operation. Halliburton Energy Services recognizes the importance of meeting society's needs for health, safety, and protection of the environment. It is our intention to proactively work with employees, customers, the public, governments, and others to use natural resources in an environmentally sound manner while protecting the health, safety, and environmental processes while supplying high quality products and services to our customers. We appreciate the opportunity to present this cost estimate for your consideration and we look forward to being of service to you. Our Services for your well will be coordinated through the Service Center listed below. If you require any additional information or additional designs, please feel free to contact myself or our field representative listed below. Prepared and Submitted by: Jeremy Talarovich Cement Account Representative SERVICE CENTER: Deadhorse,AK SERVICE COORDINATORS: Wes Miller/Jeff Helms OPER. ENGINEERS: Phillip Clingman/Jeremy Talarovich PHONE NUMBER: 907.659.2805 Deadhorse Camp 907.275.2630 Engineering Support HALLIBURTON Cementing Best Practices 1. Cement quality and weight: You must choose a cement slurry that is designed to solve the problems specific to each casing string. 2. Waiting time:You must hold the cement slurry in place and under pressure until it reaches its'initial set without disturbing it. A cement slurry is a time-dependent liquid and must be allowed to undergo a hydration reaction to produce a competent cement sheath. A fresh cement slurry can be worked (thickening or pump time)as long as it is in a plastic state and before going through its'transition phase.If the cement slurry is not allowed to transition without being disturbed,it may be subjected to changes in density,dilution,settling,water separation,and gas cutting that may lead to a lack of zonal isolation and possible bridging in the annulus. 3. Pipe movement: Pipe movement may be one of the single most influential factors in mud removal. Reciprocation and/or rotation mechanically breaks up gelled mud and changes the flow patterns in the annulus to improve displacement efficiency. 4. Mud properties(for cementing): Rheology: Plastic Viscosity(PV)<15 centipoise(cp) Yield Point(YP)<10 lb/100 ft2 These properties should be reviewed with the Mud Engineer,Drilling Engineer,and Company Representative(s)to ensure no hole problems are created. Gel Strength: The 10-second/10-minute gel strength values should be such that the 10-second and 10-minute readings are close together or flat(i.e.,5/6).The 30-minute reading should be less than 20 lb/100 ft2. Sufficient shear stress may not be achieved on a primary cement job to remove mud left in the hole if the mud were to develop more than 25 lb/100 ftz of gel strength. Fluid Loss: Decreasing the filtrate loss into a permeable zone enhances the creation of a thin,competent filter cake.A thin,competent filter cake created by a low fluid loss mud system is desirable over a thick,partially gelled filter cake.A mud system created with a low fluid loss will be more easily displaced.The fluid loss value should be< 15 cc's(ideal would be 5 cc's). 5. Circulation: Prior to cementing circulate full hole volume twice,or until well conditioned mud is being returned to the surface. There should be no cutting in the mud returns. An annular velocity of 260 feet per minute is optimum(SPE/IADC 18617),if possible. 6. Flow rate: Turbulent flow is the most desirable flow regime for mud removal. If turbulence cannot be achieved pump at as high a flow rate that can practically and safely be used to create the maximum flow energy. The highest mud removal is achieved when the maximum flow energy is obtained. 7. Pipe Centralization: Cement will take the path of least resistance;therefore,proper centralization is important to help prevent the casing from contacting the borehole wall. A minimum standoff of 70% should be targeted for optimum displacement efficiency. 8. Rat hole: A weighted viscous pill placed in the rat hole prior to cementing will minimize the risk of higher density cement mixing with lower density mud when the well is static. 9. Top and Bottom plugs:A top and bottom plug are recommended to be run on all primary casing jobs.The bottom plug should be run after the spacer and ahead of the first cement slurry. 10. Spacers and flushes: Spacers and/or flushes should be used to prevent contamination between the cement slurry and the drilling fluid.They are also used to clean the wellbore and aid with bonding.To determine the volume,either a minimum of 10 minutes contact time or 1000 ft.of annular fill,whichever is greater,is recommended. HALLIBURTON Job Information 13-3/8" Surface Well Name: Sikumi Well#: 1 20"Conductor Casing 0- 120 ft(MD) Outer Diameter 20.000 in Inner Diameter 19.124 in Linear Weight 94 lbm/ft Casing Grade H-40 16" Surface Hole 1800-3021 ft(MD) Inner Diameter 16.000 in Job Excess 30% 16" Surface Hole 120- 1800 ft(MD) Inner Diameter 16.000 in Job Excess 200% 13-3/8" Surface Casing 0-3021 ft(MD) Outer Diameter 13.375 in Inner Diameter 12.415 in Linear Weight 68 lbm/ft Casing Grade L-80 5"Inner String Drill Pipe 0-2936 ft(MD) Outer Diameter 5.000 in Inner Diameter 4.276 in Linear Weight 19.50 lbm/ft The slurry design volumes are based on bringing cement to surface and with 500'of fill for the tail cement.Bottom of permafrost is located at 1800'MD.200%excess is utilized above this point while 30% excess is used below.A frac gradient of 12.5 ppg at 3021'was used with a max ECD shown through simulation of 12.17 ppg. HALLIBURTON Calculations 13-3/8" Surface Spacer: Total Spacer = 56.15 ft3 = 10.00 bbl Spacer: Total Spacer = 336.88 ft3 = 60.00 bbl Cement : (2521.00 ft fill) 120.00 ft* 1.019 ft3/ft* 0% = 122.28 ft3 1680.00 ft*0.4206 ft3/ft* 200% = 2119.65 ft3 721.00 ft* 0.4206 ft3/ft* 30% = 394.20 ft3 Total Lead Cement = 2636.14 ft3 = 469.51 bbl Sacks of Cement = 579 sks Cement : (500.00 ft fill) 415.00 ft* 0.4206 ft3/ft* 30% = 226.90 ft3 85.00 ft* 0.4206 ft3/ft* 30% = 46.47 ft3 Tail Cement = 273.37 ft3 = 48.69 bbl Shoe Joint Volume: (85.00 ft fill) 85.00 ft* 0.8407 ft3/ft = 71.46 ft3 = 12.73 bbl Tail plus shoe joint = 344.82 ft3 = 61.42 bbl Total Tail = 292 sks Total Pipe Capacity: 2936.00 ft* 0.0997 ft3/ft = 292.79 ft3 85.00 ft* 0.8407 ft3/ft = 71.46 ft3 = 64.88 bbl Displacement Volume to Shoe Joint: Capacity of Pipe- Shoe Joint = 64.88 bbl- 12.73 bbl = 52.15 bbl HALLIBURTON � . Job Recommendation 13-3/8" Surface Fluid Instructions Fluid 1:Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 2:Water Based Spacer DUAL SPACER Fluid Density: 10 lbm/gal 45 lbm/bbl Barite(Heavy Weight Additive) Fluid Volume: 60 bbl 0.05 gal/bbl D-AIR 3000L(Defoamer) 0.1 gal/bbl Dual Spacer Mixing Aid EXP(Viscosifier) Fluid 3: Lead Cement Type L,Permafrost Fluid Weight 10.90 lbm/gal Slurry Yield: 4.55 ft3/sk Total Mixing Fluid: 24.40 Gal/sk Top of Fluid: 0 ft Calculated Fill: 2521 ft Volume: 469.51 bbl Calculated Sacks: 579.37 sks Proposed Sacks: 580 sks Fluid 4: Tail Cement Premium Cement Fluid Weight 15.80 lbm/gal 94 lbm/sk Premium Cement(Cement) Slurry Yield: 1.18 ft3/sk 2% Calcium Chloride Pellets(Accelerator) Total Mixing Fluid: 5.18 Gal/sk 0.2% CFR-3 (Dispersant) Top of Fluid: 2521 ft Calculated Fill: 500 ft Volume: 61.42 bbl Calculated Sacks: 292.22 sks Proposed Sacks: 300 sks Fluid 5: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 6:Mud Mud Displacement Fluid Density: 9.50 lbm/gal Fluid Volume 42.15 bbl HALLIBURTON b. '' Job Procedure 13-3/8" Surface Detailed Pumping Schedule Fluid# Fluid Fluid Name Surface Estimated Downhole Type Density Avg Rate Volume Ibm/gal bbl/min 1 Spacer Spacer 8.3 5.0 10 bbl 2 Spacer Weighted Spacer 10.0 5.0 60 bbl 3 Cement Lead Cement 10.9 5.0 580 sks 4 Cement Tail Cement 15.8 5.0 300 sks 5 Spacer Displacement Fluid 8.3 5.0 10 bbl 6 Mud Displacement Fluid 9.5 5.0 42.15 bbl HALLIBURTON Engineering Program Results 13-3/$Surface Surface Design Parameters Fracture Zone Measured Depth 3021.0 ft Fracture Zone Gradient 0.649 psi/ft Fracture Zone Density 12.50 lb/gal Fracture Zone Pressure 1962 psi Reservoir Measured Depth 3021.0 ft Reservoir Pore Pressure 1444 psi Reservoir Zone Gradient 0.478 psi/ft Reservoir Zone Density 9.20 lb/gal Back Pressure 0 psi Simulator Volume Increment 10.00 bbl Shoe Track Length 85.0 ft Additional Pressure to Seat Plug 500 psi Static Fluid Density 9.50 lb/gal Eccentricity Enhanced Calculations No Erodibility Enhanced Calculations No Use Coupling Information No Pumping Schedule No. Description Density Rate Volume Duration lb/gal bpm bbl min 1 Mud 9.50 5.00 0.00 0.00 2 Water 8.33 5.00 10.00 2.00 3 Modified Dual Spacer 10.00 5.00 60.00 12.00 4 Permafrost"L" 10.90 5.00 469.52 93.90 5-1 Primary Cement 15.80 5.00 61.42 12.28 5-2 Shutdown 5.00 Top Plug 6 Water 8.33 5.00 10.00 2.00 7 Mud 9.50 5.00 42.15 8.43 Total 653.08 135.62 HALL (BURTON r t°Fig Fluid Rheology - Generalized Herschel Bulkley Fluid Temp. m n TauO Mulnf Speed Dial °F Ibf/(100*ft2) cp rpm Permafrost"L"(Class 40 0.50 0.50 22.82 ' 13.82 300 70.00 G) 200 59.00 100 45.00 6 28.00 3 24.00 Primary Cement 135 0.50 0.50 7.32 78.33 300 130.00 (Class G) 200 98.00 100 61.00 6 15.00 3 12.00 78 0.50 0.50 6.99 71.31 300 122.00 200 91.00 100 55.00 60 39.00 30 25.00 6 15.50 3 12.00 Fluid Rheology - Bingham Plastic Fluid Temp. PV YP Speed Dial °F cp Ibf/(100*ft2) rpm Mud 70 16.00 22.00 Water 137 1.00 1.00 Modified Dual Spacer 70 18.00 44.00 9 1 HALLIBURTON Centralizers Centralizer Parameters Calculated Standoff/Spacing Profile Use Average Joint Lengths Yes Torque and Drag Calculations No Fluid Profile During Mud Conditioning Mud Density 9.50 lb/gal Maximum number of joints per centralizer 4.00 Minimum number of joints per centralizer 1.00 Calculate Standoff Above Yes Centralizer Specifications Part Number Type* COD Hole Nom. Min.Dia. Start Run Rest. Bows Dia. Dia. Force Force Force in in in in Ibf lbf lbf 100074168 BS 13.375 16.000 17.375 15.000 1046 533 2074 6 *BS-Bow Spring, R(S)-Rigid Solid, R(PB)-Rigid Positive Bar Constant Spacing/Standoff Centralizer Intervals Top MD Bottom MD Cent.A Required Freq.Cents. Freq.Joints Standoff ft ft % 0.0 2521.0 100074168 1.00 4.00 2521.0 3021.0 100074168 70.00 Centralizer Placement Centralizer Measured Deviation Azimuth Restoring Tension Centralizer Number Depth Force ft * * lbf lbf 1 3021.0 0.0 0.0 0 0 100074168 2 2861.0 0.0 0.0 0 9299 100074168 3 2701.0 0.0 0.0 0 18598 100074168 4 2541.0 0.0 0.0 0 27897 100074168 5 2521.0 0.0 0.0 0 29059 100074168 6 2361.0 0.0 0.0 0 38358 100074168 7 2201.0 0.0 0.0 0 47657 100074168 8 2041.0 0.0 0.0 0 56956 100074168 9 1881.0 0.0 0.0 0 66255 100074168 10 1721.0 0.0 0.0 0 75554 100074168 11 1561.0 0.0 0.0 0 94364 100074168 12 1401.0 0.0 0.0 0 113174 100074168 13 1241.0 0.0 0.0 0 131984 100074168 14 1081.0 0.0 0.0 0 150794 100074168 15 921.0 0.0 0.0 0 169604 100074168 16 761.0 0.0 0.0 0 188414 100074168 17 601.0 0.0 0.0 0 207224 100074168 18 441.0 0.0 0.0 0 226034 100074168 19 281.0 0.0 0.0 0 244844 100074168 I 20 121.0 0.0 0.0 0 263654 100074168 10 HALLIBURTON Simulation Volume and Rate Calculations Time Surface Surface Liquid Total Liquid Rate Total Rate Stage In Stage Out , Volume In Volume Out In Out min bbl bbl bpm bpm 0.02 2 1 0.08 0.08 5.00 5.00 10.00 3 1 50.00 50.00 5.00 5.00 28.00 4 1 140.00 140.73 5.00 4.91 48.00 4 1 240.00 240.00 5.00 5.00 68.00 4 1 340.00 340.00 5.00 5.00 88.00 4 1 _ 440.00 440.00 5.00 5.00 107.90 4 1 539.52 539.52 5.00 5.00 120.20 5 3 600.93 613.88 0.00 4.48 127.19 6 3 610.93 619.55 5.00 2.53 135.63 7 4 653.08 653.08 0.00 0.00 Horsepower, Pressure, Freefall Time Liquid Pump Surface Surface ECD© ECD @ Free Fall Volume In Output Pressure Pressure TD Frac Zone Height In Out min bbl hp psi psi lb/gal lb/gal ft 0.02 0.08 17.2 126 0 9.86 9.86 0.0 10.00 50.00 18.8 139 0 9.86 9.86 0.0 28.00 140.00 1.8 0 0 10.05 10.05 41.1 48.00 240.00 8.4 53 0 10.52 10.52 0.0 68.00 340.00 12.8 89 0 10.75 10.75 0.0 88.00 440.00 16.9 123 0 10.97 10.97 0.0 107.90 539.52 21.0 157 0 11.18 11.18 0.0 120.20 600.93 0.0 0 0 11.49 11.49 729.3 127.19 610.93 1.8 0 0 11.55 _ 11.55 485.4 135.63 653.08 0.0 983 0 11.71 11.71 0.0 Gas Flow Potential 1 Gas Flow Potential 2.67 at Reservoir Zone Measured Depth 3021.0 ft Based on analysis of the above outlined well conditions,this well is considered to have a MINOR gas flow potential. 1 Wells in this category fall into flow condition 1. 11 HALLIBURTON Final Position of Stages Stage Description Annular Casing Annular Casing Length Length Top MD Top MD ft ft ft ft Mud Water Modified Dual Spacer Permafrost"L" 2521.0 0.0 Primary Cement 500.0 85.0 2521.0 2936.0 Water 563.0 2373.0 Mud 2373.0 0.0 Time of Events Time Frac Res Stage Starts Pumping Stage Enters Annulus Zone Zone ECD ECD min Ib/gal lb/gal 0.02 9.86 9.86 2.Water 2.02 9.86 9.86 3. Modified Dual Spacer 14.00 9.83 9.83 2. Water 14.02 9.84 9.84 4. Permafrost"L" 16.00 _ 9.82 9.82 3. Modified Dual Spacer 28.00 10.05 10.05 4. Permafrost"L" 107.92 11.18 11.18 5. Primary Cement 120.00 _ 11.48 11.48 5. Primary Cement 125.20 11.41 11.41 6. Water 127.20 11.55 11.55 7. Mud 135.62 12.16 12.16 Prior to plug landing 135.63 11.71 11.71 Plug Landed 12 LI BIFID ENTAL U �tn cd Ti.r ‘v:')' a A E- E Q- U V a 2 x �3 a, X237 & 3 Q �Q w 1 1 II I I ..,.. H © 0 74 an 0 N _ O N 4 rilq N A ►1 O V1 N O A 00 I A ,,ti0 O 1 p M Wtn o II +, U o itis 4 a) cd § 0A -cn Uro O .e Cip0 l 0 0 a . 0 bvi /i N 0.0 o a 2t/1 w ~ 0 = a o4 � a � .,� ' EL ~ � 0 0 0 c 0 :Q. CO I A a) 66 J , f i f l I I I I I I I I I I l I If f l l f l l l l l l l l 00 0 A 0 0 0 0 0 0 O 0 0 - _ 0 0 0 o O o tn 711 0 U . 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I , I , I , I 1 I , I 1¢ U N 74EnN N vi 4 00 C 1 15 Q A U `d w � 4 < •,-1 i 4 0 ci)00 Oooix a > o cu ci)4 3 O O ,„am.,, N Q •.I 1, x ZCLI c7i en Z • 0 ,Ly © 0 A q a . - U a 00 m Q I~ 0 J wa p o 0A 0 Q E h M N ,- O O 00 y = (l ,li)14 i?sula P?ni3`QAi ii iZO£le u i CONF/DENT/AL co, -M 7M + N E- d, + + + + + + + + + + + II1IIII -opo 0 b w 0 v) a) 73 an 0 oo N 0 N 4 ry t4:14 7: iii C Vs 0 a -� � 4, R 1 -1 y U 4-i '� � ,� cn ¢ 0 o w -7r U x 0 o4 Orn0 Ctk o Qz x y w — izi o3 O a0 a 0 00 c a N U cn OI I l l l l f rl [-I-I I I i I I I I00-p.I I I I I 1 1 1 0 1.0 0 O O 0 0 0 O 2 A M tn N Ocr) M et U3 NW 00 l aas i Job Information 9-5/8"Intermediate Well Name: Sikumi Well#: 1 9-5/8"Intermediate Casing 0-6350 ft(MD) Outer Diameter 9.625 in Inner Diameter 8.835 in Linear Weight 401bm/ft Casing Grade L-80 13-3/8" Surface Casing 0-3021 ft(MD) Outer Diameter 13.375 in Inner Diameter 12.415 in Linear Weight 681bm/ft Casing Grade L-80 12-1/4"Intermediate Hole 3021 -6350 ft(MD) Inner Diameter 12.250 in Job Excess 30% The slurry design volumes are based on 30%excess with cement brought 500'MD above the top of the Torok located at 4850'MD.A frac gradient of 12.5 ppg at 6350'was used with a max ECD shown through simulation of 12.26 ppg. Calculations " 9-5/8 Intermediate Spacer: 137.90 ft* 0.3132 ft3/ft* 30% = 56.15 ft3 Total Spacer = 56.15 ft3 = 10.00 bbl Spacer: 827.41 ft* 0.3132 ft3/ft* 30% = 336.88 ft3 Total Spacer = 336.88 ft3 = 60.00 bbl Cement: (1000.00 ft fill) 1000.00 ft*0.3132 ft3/ft* 30% = 407.14 ft3 Total Lead Cement = 407.14 ft3 = 72.52 bbl Sacks of Cement = 168 sks Cement : (1000.00 ft fill) 1000.00 ft* 0.3132 ft3/ft* 30% = 407.14 ft3 Tail Cement = 407.14 ft3 = 72.52 bbl Shoe Joint Volume: (85.00 ft fill) 85.00 ft* 0.4257 ft3/ft = 36.19 ft3 = 6.45 bbl Tail plus shoe joint = 443.33 ft3 = 78.96 bbl Total Tail = 386 sks Total Pipe Capacity: 6350.00 ft* 0.4257 ft3/ft = 2703.42 ft3 = 481.50 bbl Displacement Volume to Shoe Joint: Capacity of Pipe- Shoe Joint = 481.50 bbl-6.45 bbl = 475.05 bbl Job Recommendation 9-5/8"Intermediate Fluid Instructions Fluid 1:Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 2: Water Based Spacer DUAL SPACER Fluid Density: 11.50 lbm/gal 133.5 lbm/bbl Barite(Heavy Weight Additive) Fluid Volume: 60 bbl 0.05 gal/bbl D-AIR 3000L(Defoamer) 0.1 gal/bbl Dual Spacer Mixing Aid EXP(Viscosifier) Fluid 3: Lead Cement Premium Cement Fluid Weight 12.50 lbm/gal 94 lbm/sk Premium Cement(Cement) Slurry Yield: 2.43 ft3/sk 15 lbm/sk Microlite(Light Weight Additive) Total Mixing Fluid: 13.69 Gal/sk 0.75% Halad(R)-344(Low Fluid Loss Control) Top of Fluid: 4350 ft 0.2% CFR-3 (Dispersant) Calculated Fill: 1000 ft 0.15 lbm/sk Halliburton EZ-FLO(Bulk Flow Enhancer) Volume: 72.52 bbl 0.25 % SCR-100(Retarder) Calculated Sacks: 167.55 sks Proposed Sacks: 170 sks Fluid 4: Tail Cement Premium Cement Fluid Weight 15.80 lbm/gal 94 lbm/sk Premium Cement(Cement) Slurry Yield: 1.15 ft3/sk 0.6% Halad(R)-344(Low Fluid Loss Control) Total Mixing Fluid: 4.97 Gal/sk 0.3 % SCR-100(Retarder) Top of Fluid: 5350 ft 0.1 % CFR-3 (Dispersant) Calculated Fill: 1000 ft Volume: 78.96 bbl Calculated Sacks: 385.51 sks Proposed Sacks: 390 sks Fluid 5: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 6:Mud Mud Displacement Fluid Density: 10.50 lbm/gal Fluid Volume 465.05 bbl coIv; 7BEIV 7d;s, Job Procedure 9-5/8" Intermediate Detailed Pumping Schedule Fluid# Fluid Fluid Name Surface Estimated Downhole Type Density Avg Rate Volume Ibm/gal bbl/min 1 Spacer Spacer 8.3 5.0 10 bbl 2 Spacer Weighted Spacer 11.5 5.0 60 bbl 3 Cement Lead Cement 12.5 5.0 170 sks 4 Cement Tail Cement 15.8 5.0 390 sks 5 Spacer Displacement Fluid 8.3 5.0 10 bbl 6 Mud Displacement Fluid 10.5 5.0 465.05 bbl Engineering Program Results 9-5/8"Intermediate Intermediate 1 Design L.,b//11' EN Parameters Fracture Zone Measured Depth 6350.0 ft Fracture Zone Gradient 0.649 psi/ft Fracture Zone Density 12.50 lb/gal Fracture Zone Pressure 4123 psi Reservoir Measured Depth 6350.0 ft Reservoir Pore Pressure 3431 psi Reservoir Zone Gradient 0.540 psi/ft Reservoir Zone Density 10.40 lb/gal Back Pressure 0 psi Simulator Volume Increment 10.00 bbl Shoe Track Length 85.0 ft Additional Pressure to Seat Plug 500 psi Eccentricity Enhanced Calculations No Erodibility Enhanced Calculations No Use Coupling Information No Pumping Schedule No. Description Density Rate Volume Duration lb/gal bpm bbl min 1 Mud 10.50 5.00 0.00 0.00 2 Water 8.33 5.00 10.00 2.00 3 Modified Dual Spacer 11.50 5.00 60.00 12.00 4 12.5 Lead Cement 12.50 5.00 72.52 14.50 5-1 Primary Cement(1.15/4.97) 15.80 5.00 78.96 15.79 5-2 Shutdown 5.00 Top Plug 6 Water 8.33 5.00 10.00 2.00 7-1 Mud 10.50 5.00 445.06 89.01 7-2 Mud 10.50 2.00 20.00 10.00 Total 696.53 150.30 ONf-1;1 ,CA!rift ? HALLIBURTr'N Fluid Rheology - Generalized Herschel Bulkley Fluid Temp. m n Tau() Mulnf Speed Dial °F Ibf/(100*ft2) cp rpm Primary Cement 135 0.50 0.50 7.32 78.33 300 130.00 (1.15/4.97) (Class G) 200 98.00 100 61.00 6 15.00 3 12.00 78 0.50 0.50 6.99 71.31 300 122.00 200 91.00 100 55.00 60 39.00 30 25.00 6 15.50 3 12.00 Fluid Rheology - Bingham Plastic Fluid Temp. PV YP Speed Dial °F cp I bf/(1 00*ft2) rpm Mud 70 25.00 22.00 Water 137 1.00 1.00 Modified Dual Spacer 70 57.00 33.00 12.5 Lead Cement 125 12.05 2.48 300 16.00 200 9.00 100 4.00 20 4.00 10 4.00 *6 3.00 , *3 1.00 * Discarded values outside the required range for the BP rheology model. 23 ,- . ' 11 i ifl[ i i'' r- cp t i HALLIBURTON Y Centralizers Centralizer Parameters Calculated Standoff/Spacing Profile Use Average Joint Lengths Yes Torque and Drag Calculations No Fluid Profile During Mud Conditioning Mud Density 10.50 lb/gal Maximum number of joints per centralizer 4.00 Minimum number of joints per centralizer 1.00 Calculate Standoff Above Yes Centralizer Specifications Part Number Type* COD Hole Nom. Min.Dia. Start Run Rest. Bows Dia. Dia. Force Force Force in in in in lbf lbf lbf 100004485 BS 9.625 12.250 13.500 11.250 801 312 3302 6 *BS- Bow Spring, R(S)- Rigid Solid, R(PB)- Rigid Positive Bar Constant Spacing/Standoff Centralizer Intervals Top MD Bottom MD Cent.A Required Freq.Cents. Freq.Joints Standoff ft ft % 4350.0 6350.0 100004485 70.00 Centralizer Placement Centralizer Measured Deviation Azimuth Restoring Tension Centralizer Number Depth Force ft lbf Ibf 1 6350.0 0.0 0.0 0 0 100004485 2 6190.0 0.0 0.0 0 5372 100004485 3 6030.0 0.0 0.0 0 10744 100004485 4 5870.0 0.0 0.0 0 16116 100004485 5 5710.0 0.0 0.0 0 21488 100004485 6 5550.0 0.0 0.0 0 26860 100004485 7 5390.0 0.0 0.0 0 32232 100004485 8 5230.0 0.0 0.0 0 37604 100004485 9 5070.0 0.0 0.0 0 42976 100004485 10 4910.0 0.0 0.0 0 48348 100004485 11 4750.0 0.0 0.0 0 53721 100004485 12 4590.0 0.0 0.0 0 59093 100004485 13 4430.0 0.0 0.0 0 64465 100004485 14 4390.0 0.0 0.0 0 65808 100004485 15 4350.0 0.0 0.0 0 67151 100004485 24 s arm-,. /vLiiii"° f HALLIBURTON ' (i if Simulation Volume and Rate Calculations Time Surface Surface Liquid Total Liquid Rate Total Rate Stage In Stage Out Volume In Volume Out In Out min bbl bbl bpm bpm 0.02 2 1 0.08 0.08 5.00 5.00 10.00 3 1 50.00 50.00 5.00 5.00 28.00 4 1 140.00 140.00 5.00 5.00 44.00 5 1 220.00 1 238.70 5.00 7.59 50.60 6 1 228.00 249.64 5.00 3.05 65.00 7 1 _ 300.00 319.57 5.00 5.00 85.00 7 1 400.00 419.57 5.00 5.00 105.00 7 1 500.00 518.76 5.00 4.13 125.00 7 1 600.00 600.00 5.00 5.00 141.04 7 1 678.00 678.00 2.00 2.00 150.32 7 1 696.53 696.53 0.00 0.00 Horsepower, Pressure, Freefall Time Liquid Pump Surface Surface ECD @ ECD @ Free Fall Volume In Output Pressure Pressure TD Frac Zone Height In Out min bbl hp psi psi lb/gal lb/gal ft 0.02 0.08 34.9 270 0 11.12 11.12 0.0 10.00 50.00 33.6 259 0 11.12 11.12 0.0 28.00 140.00 19.3 143 0 11.12 11.12 0.0 44.00 220.00 1.8 0 0 11.16 11.16 246.6 50.60 228.00 1.8 0 0 11.10 11.10 285.4 65.00 300.00 1.8 0 0 11.12 11.12 258.1 85.00 400.00 1.8 0 0 11.12 11.12 258.1 105.00 500.00 1.8 0 0 11.13 11.13 247.5 125.00 600.00 7.7 49 0 11.40 11.40 0.0 141.04 678.00 24.9 494 0 12.04 12.04 0.0 150.32 696.53 0.0 1131 0 11.73 11.73 0.0 Gas Flow Potential Gas Flow Potential 2.29 at Reservoir Zone Measured Depth 6350.0 ft Based on analysis of the above outlined well conditions,this well is considered to have a MINOR gas flow potential. Wells in this category fall into flow condition 1. 25 CONF/P174,f7r., , HALLIBURTON Final Position of Stages Stage Description Annular Casing Annular Casing Length . Length Top MD Top MD ft ft ft ft Mud 3384.7 0.0 Water 137.9 3384.7 Modified Dual Spacer 827.4 3522.6 12.5 Lead Cement 1000.0 4350.0 Primary Cement(1.15/4.97) 1000.0 85.0 5350.0 6265.0 Water 131.9 6133.1 Mud 6133.1 0.0 Time of Events Time Frac Res Stage Starts Pumping Stage Enters Annulus Zone Zone ECD ECD min lb/gal lb/gal 0.02 11.12 11.12 2. Water 2.02 11.12 11.12 3. Modified Dual Spacer 14.02 11.12 11.12 4. 12.5 Lead Cement 28.52 11.13 11.13 5. Primary Cement(1.15/4.97) 49.30 11.06 11.06 6. Water 51.30 11.10 11.10 7. Mud 99.00 11.09 11.09 2. Water 99.00 11.09 11.09 3. Modified Dual Spacer 113.00 11.22 11.22 4. 12.5 Lead Cement 131.00 11.55 11.55 5. Primary Cement(1.15/4.97) 150.30 12.25 12.25 Prior to plug landing 150.32 11.73 11.73 Plug Landed 26 --- -- -- - I-dm-F./or- Tliii CONFIDENTIAL oGO av N VN OoaA AU °a o ba ,c, 111111 II ° i N o O ;,; o oa in N '•:,)1 ren n m C ren 7 n .. ti Mo 0 0 iitevto min M irim A If) o s ren .1 n r" y i. 6 :6 M o ti E 4 II UI p ,o > o A o 0 0 o aM t b o 0. 4, ii �' �: 1. o z 2 w _ 0 =bk 41 O o � © rA '" a .05 •� N . '" �' c y o i a 4.. © ."(:) v m - A ; � Jli oo EA J - � � •� 0 0 0 0 C 0 0 o U a wipcbacconsRAI Q w E CONF VROENT, 0.0 L. tv V1 rN A U N 4 Oo Q, ,., "C CJ U 4-' 3 rj a. ; i b O 0 0 0 0 0 0 (Foic )cm V1 O V1 O V1 N M NN ,--1r- C C .. ~ .r r-' .r0 N ISI 0 - '^ Am N o ct cu 0 T46 �o • oo a��o � o ti t., cd > in ' N tEi ;1 " cA a cA w UQI4 5 .4:,4,, § d H - 0 o 4) v) A : 11 z 04 a) •5 N 1 o F. ;...• A° 10 S o a VD o CA C m_ ^L,, U _ A U I I I I I M O E A r. 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U3 : (i2,ij)uI 1C-1TJSU I P?nj3`GAL IT OS£9 Tv CM CA • CONFIDENflAL o00 ..a c 4 + '5N _00O r, o i t b O t) Ei V) O 00 N O Npp - cC kA a) 0 I O PA� 0 2 01 O o A . vW V ..../'k 2 o E Orb <4 Ow -7r U c4 O o 4 atx CLI L * o z x y w — O 0.1 Cn ;MO 0 0 4.1 En O 0 rn T O E A0 OOOOOOO O N m o r y RI U ($)LI.iaj PainstriAl Job Information 7"Intermediate Liner Well Name: Sikumi Well#: 1 9-5/8"Intermediate Casing 0-6350 ft(MD) Outer Diameter 9.625 in Inner Diameter 8.835 in Linear Weight 401bm/ft Casing Grade L-80 7"Intermediate Liner 6200-7374 ft(MD) Outer Diameter 7.000 in Inner Diameter 6.276 in Linear Weight 261bm/ft Casing Grade L-80 8-1/2" Intermediate Liner Hole 6350-7374 ft(MD) Inner Diameter 8.500 in Job Excess 30% 5"Drill Pipe 0-6200 ft(MD) Outer Diameter 5.000 in Inner Diameter 4.276 in Linear Weight 19.50 lbm/ft The slurry design volumes are based on 30%excess and TOC at 6,200'.A frac gradient of 14 ppg at 7374'was used with a max ECD shown through simulation of 12.49 ppg. Calculations 7" Intermediate Liner Spacer: 194.02 ft* 0.2894 ft3/ft* 0% = 56.15 ft3 Total Spacer = 56.15 ft3 = 10.00 bbl Spacer: 1164.12 ft*0.2894 ft3/ft* 0% = 336.88 ft3 Total Spacer = 336.88 ft3 = 60.00 bbl Cement : (1174.00 ft fill) 150.00 ft* 0.1585 ft3/ft* 0% = 23.77 ft3 1024.00 ft* 0.1268 ft3/ft* 30% = 168.81 ft3 Tail Cement = 192.58 ft3 = 34.30 bbl Shoe Joint Volume: (85.00 ft fill) 85.00 ft* 0.2148 ft3/ft = 18.26 ft3 = 3.25 bbl Tail plus shoe joint = 210.84 ft3 = 37.55 bbl Total Tail = 183 sks Total Pipe Capacity: 6200.00 ft*0.0997 ft3/ft = 618.29 ft3 1174.00 ft*0.2148 ft3/ft = 252.21 ft3 = 155.04 bbl Displacement Volume to Shoe Joint: Capacity of Pipe- Shoe Joint = 155.04 bbl-3.25 bbl = 151.79 bbl Job Recommendation 7"Intermediate Liner Fluid Instructions Fluid 1:Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 2:Water Based Spacer DUAL SPACER Fluid Density: 12.50 lbm/gal 192 lbm/bbl Barite(Heavy Weight Additive) Fluid Volume: 60 bbl 0.05 gal/bbl D-AIR 3000L(Defoamer) 0.1 gal/bbl Dual Spacer Mixing Aid EXP(Viscosifier) Fluid 3: Tail Cement Premium Cement Fluid Weight 15.80 lbm/gal 94 lbm/sk Premium Cement(Cement) Slurry Yield: 1.15 ft3/sk 0.3 % Halad(R)-344(Low Fluid Loss Control) Total Mixing Fluid: 4.97 Gal/sk 0.3 % Halad(R)-413 (Low Fluid Loss Control) Top of Fluid: 6200 ft 0.35 % SCR-100(Retarder) Calculated Fill: 1174 ft 0.1 % CFR-3 (Dispersant) Volume: 37.55 bbl Calculated Sacks: 183.34 sks Proposed Sacks: 190 sks Fluid 4:Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 5:Mud Mud Displacement Fluid Density: 10.50 lbm/gal Fluid Volume 141.79 bbl Job Procedure 7" Intermediate Liner Detailed Pumping Schedule Fluid# Fluid Fluid Name Surface Estimated Downhole Type Density Avg Rate Volume lbm/gal bbl/min 1 Spacer Spacer 8.3 5.0 10 bbl 2 Spacer Weighted Spacer 12.5 5.0 60 bbl 3 Cement Tail Cement 15.8 5.0 190 sks 4 Spacer Displacement Fluid 8.3 5.0 10 bbl 5 Mud Displacement Fluid 10.5 5.0 141.79 bbl CONFIBT'A Engineering Program Results 7" Intermediate Liner Intermediate 2 Design Parameters Fracture Zone Measured Depth 7374.0 ft Fracture Zone Gradient 0.727 psi/ft Fracture Zone Density 14.00 lb/gal Fracture Zone Pressure 5363 psi Reservoir Measured Depth 7374.0 ft Reservoir Pore Pressure 3984 psi Reservoir Zone Gradient 0.540 psi/ft Reservoir Zone Density 10.40 lb/gal Back Pressure 0 psi Simulator Volume Increment 5.00 bbl Shoe Track Length 85.0 ft Additional Pressure to Seat Plug 500 psi Eccentricity Enhanced Calculations No Erodibility Enhanced Calculations No Use Coupling Information No Pumping Schedule No. Description Density Rate Volume Duration lb/gal bpm bbl min 1 Mud 10.50 5.00 0.00 0.00 2 Water 8.33 5.00 10.00 2.00 3 Modified Dual Spacer 12.50 5.00 60.00 12.00 4-1 Primary Cement(1.15/4.97) 15.80 5.00 37.55 7.51 4-2 Shutdown 5.00 Top Plug 5 Water 8.33 5.00 10.00 2.00 6 Mud 10.50 5.00 141.79 28.36 Total 259.34 56.87 Fluid Rheology - Generalized Herschel Bulkley Fluid Temp. m n TauO Mulnf Speed Dial °F Ibf/(100*ft2) cp rpm Primary Cement 135 0.50 0.50 7.32 78.33 300 130.00 (1.15/4.97) (Class G) 200 98.00 100 61.00 6 15.00 3 12.00 78 0.50 0.50 6.99 71.31 300 122.00 200 91.00 100 55.00 60 39.00 30 25.00 6 15.50 3 12.00 CONRO Ftirt1/ Fluid Rheology - Bingham Plastic Fluid Temp. PV YP Speed Dial °F cp lbf/(100*ft2) rpm Mud 70 25.00 22.00 Water 137 1.00 1.00 Modified Dual Spacer 70 57.00 33.00 37 Centralizers Centralizer Parameters Calculated Standoff/Spacing Profile Use Average Joint Lengths Yes Torque and Drag Calculations No Fluid Profile During Mud Conditioning Mud Density 10.50 lb/gal Maximum number of joints per centralizer 4.00 Minimum number of joints per centralizer 1.00 Calculate Standoff Above Yes Centralizer Specifications Part Number Type* COD Hole Nom. Min.Dia. Start Run Rest. Bows Dia. Dia. Force Force Force in in in in lbf lbf lbf 100004479 BS 7.000 8.750 10.000 8.500 960 518 2785 4 *BS - Bow Spring, R(S)- Rigid Solid, R(PB)- Rigid Positive Bar Constant Spacing/Standoff Centralizer Intervals Top MD Bottom MD Cent.A Required Freq.Cents. Freq.Joints Standoff ft ft 6800.0 7374.0 100004479 70.00 Centralizer Placement Centralizer Measured Deviation Azimuth Restoring Tension Centralizer Number Depth Force ft lbf lbf 1 7374.0 0.0 0.0 0 0 100004479 2 7214.0 0.0 0.0 0 3492 100004479 3 7054.0 0.0 0.0 0 6984 100004479 4 6894.0 0.0 0.0 0 10476 100004479 _ 5 6854.0 0.0 0.0 0 11348 100004479 6 6814.0 0.0 0.0 0 12221 100004479 r f d 41111F4 1 . , . ne8 A e Simulation Volume and Rate Calculations Time Surface Surface Liquid Total Liquid Rate Total Rate Stage In Stage Out Volume In Volume Out In Out min bbl bbl bpm bpm 0.02 2 1 0.08 0.08 5.00 5.00 6.00 3 1 30.00 30.00 5.00 5.00 15.00 4 1 75.00 75.00 5.00 5.00 24.00 4 1 107.55 124.44 0.00 1.52 28.53 6 1 117.64 130.61 5.00 3.34 38.00 6 1 165.00 174.17 5.00 3.96 48.00 6 1 215.00 215.00 5.00 5.00 56.87 6 1 259.34 259.34 5.00 5.00 56.89 6 1 259.34 259.34 0.00 0.00 Horsepower, Pressure, Freefall Time Liquid Pump Surface Surface ECD @ ECD @ Free Fall Volume In Output Pressure Pressure TD Frac Zone Height In Out min bbl hp psi psi lb/gal lb/gal ft 0.02 0.08 52.0 410 0 11.12 11.12 0.0 6.00 30.00 46.3 364 0 11.12 11.12 0.0 15.00 75.00 13.0 92 0 11.12 11.12 0.0 24.00 107.55 0.0 0 0 11.04 11.04 950.9 28.53 117.64 1.8 0 0 11.08 11.08 730.4 38.00 165.00 1.8 0 0 11.07 11.07 516.6 48.00 215.00 43.1 337 0 11.62 11.62 0.0 56.87 259.34 116.4 936 0 12.49 12.49 0.0 56.89 259.34 0.0 1436 0 11.60 11.60 0.0 Gas Flow Potential Gas Flow Potential 2.25 at Reservoir Zone Measured Depth 7374.0 ft Based on analysis of the above outlined well conditions,this well is considered to have a MINOR gas flow potential. Wells in this category fall into flow condition 1. Final Position of Stages Stage Description Annular Casing Annular Casing Length Length Top MD Top MD ft ft ft ft Mud 4841.9 0.0 Water 194.0 4841.9 Modified Dual Spacer 1164.1 5035.9 Primary Cement(1.15/4.97) 1174.0 85.0 6200.0 7289.0 Water 261.4 7027.6 Mud 7027.6 0.0 39 Time of Events Time Frac Res Stage Starts Pumping Stage Enters Annulus Zone Zone ECD ECD min Ib/gal Ib/gal 0.02 11.12 11.12 2. Water 2.02 11.12 11.12 3. Modified Dual Spacer 14.02 11.12 11.12 4. Primary Cement(1.15/4.97) 26.53 11.02 11.02 5. Water 28.53 11.08 11.08 6. M u d 35.00 11.05 11.05 2. Water 36.00 10.99 10.99 3. Modified Dual Spacer 51.00 11.79 11.79 4. Primary Cement(1.15/4.97) 56.88 12.49 12.49 Prior to plug landing 56.90 11.60 11.60 Plug Landed 40 N r 000 CA 4.'i., Nt71.: '9-, 'Ji) £.. 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O :.-I N ui Q ctO 2 Q NN A as ti iA z U E g wr4 O 4 O O u a cn e.._r 4 P4 CI o A 0W LEI" A CLI s ci a D U a L. O C et a w EA I I I I I I I O 2 — E Q 2 V1 M N — O ' 00 Z 4) U3 : 0321/4)til Al! P?ni3`QAL$t7L£L le GO3 CA 000 1 0 7 + *N I U� ++++ -oon0 w a) .0 0 m a) -071100 O 00 N O N 4 r—, N ami y o A ^ . C1:1 a.i p imi a4..4 al U 0 ►' O 1 00 _o w c' U 0 an CU et b:JD o z ai) w• ' ill W Z • 3 O aEn Pio 0 0 0 0 44—I 0 a, U I I I O O O O O O O O O O • A O O O O O C O C • y cl rn tn el U3 AM) (1J)u Q 'INT Job Information 3-1/2" Production Liner Well Name: Sikumi Well#: 1 9-5/8" Intermediate Casing 0-6350 ft(MD) Outer Diameter 9.625 in Inner Diameter 8.835 in Linear Weight 40 lbm/ft Casing Grade L-80 7"Intermediate Liner 6200-7374 ft(MD) Outer Diameter 7.000 in Inner Diameter 6.276 in Linear Weight 26 lbm/ft Casing Grade L-80 3-1/2'Production Liner 7224-8474 ft(MD) Outer Diameter 3.500 in Inner Diameter 2.992 in Linear Weight 9.30 lbm/ft Tubing Grade L-80 6-1/8"Production Liner Hole 7374- 8474 ft(MD) Inner Diameter 6.125 in Job Excess 30% 4"Drill Pipe 2 4724-7224 ft(MD) Outer Diameter 4.000 in Inner Diameter 3.500 in Linear Weight 10.40 lbm/ft 5"Drill Pipe 2 0-4724 ft(MD) Outer Diameter 5.000 in Inner Diameter 4.276 in Linear Weight 19.50 lbm/ft The slurry design volumes are based on 30%excess and bringing cement—200'MD above the top of the liner hanger located at 7224'MD.A frac gradient of 12 ppg at 8474'was used with a max ECD shown through simulation of 11.72 ppg. Calculations 3-1/2" Production Liner Spacer: 165.88 ft* 0.3385 ft3/ft* 0% = 56.15 ft3 Total Spacer = 56.15 ft3 = 10.00 bbl Spacer: 187.1Oft* 0.3385ft3/ft* 0% = 63.33 ft3 150.00 ft* 0.1276 ft3/ft* 0% = 19.13 ft3 674.00 ft* 0.1276 ft3/ft* 0% = 85.98 ft3 Total Spacer = 168.44 ft3 = 30.00 bbl Cement : (1450.00 ft fill) 200.00 ft* 0.1276 ft3/ft* 0% = 25.51 ft3 150.00 ft* 0.148ft3/ft* 0% = 22.20 ft3 1100.00 ft* 0.1378 ft3/ft* 30% = 197.06 ft3 Tail Cement = 244.77 ft3 = 43.60 bbl Shoe Joint Volume: (85.00 ft fill) 85.00 ft* 0.0488 ft3/ft = 4.15 ft3 = 0.74 bbl Tail plus shoe joint = 248.92 ft3 = 44.33 bbl Total Tail = 216 sks Total Pipe Capacity: 4724.00 ft*0.0997 ft3/ft = 471.10 ft3 2500.00 ft*0.0668 ft3/ft = 167.03 ft3 1250.00 ft*0.0488 ft3/ft = 61.03 ft3 = 124.53 bbl Displacement Volume to Shoe Joint: Capacity of Pipe- Shoe Joint = 124.53 bbl-0.74 bbl = 123.79 bbl Job Recommendation 3-1/2"Production Liner Fluid Instructions Fluid 1:Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 2:Water Based Spacer DUAL SPACER Fluid Density: 12.50 lbm/gal 192 lbm/bbl Barite(Heavy Weight Additive) Fluid Volume: 30 bbl 0.05 gal/bbl D-AIR 3000L(Defoamer) 0.1 gal/bbl Dual Spacer Mixing Aid EXP(Viscosifier) Fluid 3: Tail Cement Premium Cement Fluid Weight 15.80 lbm/gal 94 lbm/sk Premium Cement(Cement) Slurry Yield: 1.15 ft3/sk 0.3 % Halad(R)-344(Low Fluid Loss Control) Total Mixing Fluid: 4.97 Gal/sk 0.3 % Halad(R)-413 (Low Fluid Loss Control) Top of Fluid: 7024 ft 0.35 % SCR-100(Retarder) Calculated Fill: 1450 ft 0.1 % CFR-3 (Dispersant) Volume: 44.33 bbl Calculated Sacks: 216.45 sks Proposed Sacks: 220 sks Fluid 4:Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 5: Mud Mud Displacement Fluid Density: 9.60 lbm/gal Fluid Volume 113.79 bbl Job Procedure 3-1/2" Production Liner Detailed Pumping Schedule Fluid# Fluid Fluid Name Surface Estimated Downhole Type Density Avg Rate Volume Ibm/gal` bbllmin 1 Spacer Spacer 8.3 5.0 10 bbl 2 Spacer Weighted Spacer 12.5 5.0 30 bbl 3 Cement Tail Cement 15.8 5.0 220 sks 4 Spacer Displacement Fluid 8.3 5.0 10 bbl 5 Mud Displacement Fluid 9.6 5.0 113.79 bbl P0Avr, • ILitAlTIA Engineering Program Results 3-1/2" Production Liner Production Liner Design Parameters Fracture Zone Measured Depth 8474.0 ft Fracture Zone Gradient 0.623 psi/ft Fracture Zone Density 12.00 lb/gal Fracture Zone Pressure 5282 psi Reservoir Measured Depth 8474.0 ft Reservoir Pore Pressure 4182 psi Reservoir Zone Gradient 0.494 psi/ft Reservoir Zone Density 9.50 lb/gal Back Pressure 0 psi Simulator Volume Increment 5.00 bbl Shoe Track Length 85.0 ft Additional Pressure to Seat Plug 500 psi Eccentricity Enhanced Calculations No Erodibility Enhanced Calculations No Use Coupling Information No Pumping Schedule No. Description Density Rate Volume Duration lb/gal bpm bbl min 1 Mud 9.60 5.00 0.00 0.00 2 Water 8.33 5.00 10.00 2.00 3 Modified Dual Spacer 12.50 5.00 30.00 6.00 4-1 Primary Cement(1.15/4.97) 15.80 5.00 44.34 8.87 4-2 Shutdown 5.00 Top Plug 5 Water 8.33 5.00 10.00 2.00 6 Mud 9.60 5.00 113.79 22.76 Total 208.12 46.62 L blip EJA HAL . IBURTDN Fluid Rheology - Generalized Herschel Bulkley Fluid Temp. m n Tau() Mulnf Speed Dial °F Ibf/(100*ft2) cp rpm Primary Cement 135 0.50 0.50 7.32 78.33 300 130.00 (1.15/4.97) (Class G) 200 98.00 100 61.00 6 15.00 3 12.00 78 0.50 0.50 6.99 71.31 300 122.00 200 91.00 100 55.00 60 39.00 30 25.00 6 15.50 3 12.00 Fluid Rheology - Bingham Plastic Fluid Temp. PV YP Speed Dial °F cp Ibf/(100*ft2) rpm Mud 70 16.00 22.00 Water 137 1.00 1.00 Modified Dual Spacer 70 57.00 33.00 51 HAL- .IBURTON Centralizers Centralizer Parameters Calculated Standoff/Spacing Profile Use Average Joint Lengths Yes Torque and Drag Calculations No Fluid Profile During Mud Conditioning Mud Density 9.60 lb/gal Maximum number of joints per centralizer 4.00 Minimum number of joints per centralizer 1.00 Calculate Standoff Above Yes Centralizer Specifications Part Number Type* COD Hole Nom. Min.Dia. Start Run Rest. Bows Dia. Dia. Force Force Force in in in in lbf lbf lbf Davis BS 3.500 6.125 6.185 Y 4.750 30 30 996 -1 3.500x6.125 *BS- Bow Spring, R(S)- Rigid Solid, R(PB)- Rigid Positive Bar Constant Spacing/Standoff Centralizer Intervals Top MD Bottom MD Cent.A Required Freq.Cents. Freq.Joints Standoff , ft ft 7224.0 8474.0 Davis 3.500x6.125 70.00 Centralizer Placement Centralizer Measured Deviation Azimuth Restoring Tension Centralizer Number Depth Force ft lbf lbf 1 8474.0 0.0 0.0 0 0 Davis 3.500x6.125 2 8314.0 0.0 0.0 0 1269 Davis 3.500x6.125 3 8154.0 0.0 0.0 0 2539 Davis 3.500x6.125 4 7994.0 0.0 0.0 0 3808 Davis 3.500x6.125 5 7834.0 0.0 0.0 0 5078 Davis 3.500x6.125 6 7674.0 0.0 0.0 0 6347 Davis 3.500x6.125 7 7514.0 0.0 0.0 0 7617 Davis 3.500x6.125 8 7354.0 0.0 0.0 0 8886 Davis 3.500x6.125 9 7314.0 0.0 0.0 0 9204 Davis 3.500x6.125 10 7274.0 0.0 0.0 0 9521 Davis 3.500x6.125 11 7234.0 0.0 0.0 0 9839 Davis 3.500x6.125 52 HALLIBURTON Simulation Volume and Rate Calculations Time Surface Surface Liquid Total Liquid Rate Total Rate Stage In Stage Out Volume In . Volume Out In Out min bbl bbl bpm bpm 0.02 2 1 0.08 0.08 5.00 5.00 6.00 3 1 30.00 . 30.00 5.00 5.00 15.00 4 1 75.00 79.79 5.00 6.92 23.00 5 1 90.00 111.05 5.00 3.26 29.00 6 1 120.00 . 141.21 5.00 5.33 39.00 6 1 170.00 176.94 5.00 2.13 46.64 6 1 208.12 208.12 0.00 0.00 Horsepower, Pressure, Freefall Time Liquid Pump Surface Surface ECD @ ECD @ Free Fall Volume In Output Pressure Pressure TD Frac Zone Height In Out min bbl hp psi psi lb/gal lb/gal ft 0.02 0.08 65.5 520 0 10.14 10.14 0.0 6.00 30.00 50.4 397 0 10.14 10.14 0.0 15.00 75.00 1.8 0 0 10.16 10.16 269.4 23.00 90.00 1.8 0 0 10.12 10.12 1185.0 29.00 120.00 1.8 0 0 10.16 10.16 1194.1 39.00 170.00 1.8 0 0 10.68 10.68 390.5 46.64 208.12 0.0 1725 0 10.98 , 10.98 0.0 Gas Flow Potential Gas Flow Potential 1.24 at Reservoir Zone Measured Depth 8474.0 ft Based on analysis of the above outlined well conditions,this well is considered to have a MINOR gas flow potential. Wells in this category fall into flow condition 1. Final Position of Stages Stage Description Annular Casing Annular Casing Length Length Top MD Top MD ft ft ft ft Mud 5847.0 0.0 Water 165.9 5847.0 Modified Dual Spacer 1011.1 6012.9 Primary Cement(1.15/4.97) 1450.0 85.0 7024.0 8389.0 Water 1149.9 7239.1 Mud 7239.1 0.0 53 HALLIBURTON Time of Events Time Frac Res Stage Starts Pumping Stage Enters Annulus Zone Zone ECD ECD min lb/gal lb/gal 0.02 10.14 10.14 2. Water 2.02 10.14 10.14 3. Modified Dual Spacer 8.02 10.14 10.14 4. Primary Cement(1.15/4.97) 21.88 10.09 10.09 5. Water 23.88 10.12 10.12 6. Mud 27.00 10.11 10.11 2. Water 28.00 10.10 10.10 . . 3. Modified Dual Spacer 35.00 10.46 10.46 4. Primary Cement(1.15/4.97) 46.63 11.72 11.72 Prior to plug landing 46.65 10.98 10.98 Plug Landed 54 CONF1 DEND IA, O v, G\ ^�M •Uk3^' 11:3 (I • CA Q OO a �b� o o 32a A chi¢ b IIHI H ° 0 cn w N O O c— N N - C CI oo� O O ' NV 0 W N • WO O ,�', V10 N o •-• Cd 49 ►y CA b .-r W O N 0 �� y '7 '� S E Q y IJ O Q 00 54o az b � INZ II Li z tt kr, w� Z CA --' 1 0 : rt a og /� O .o a .� '-' >' 0 O 6. Y.r O .� N U ia N 00 G J E a ~ � J .0 'C O 0 0 0 0 0 0 0 0 0 y •p• o 0 0 0 0 C oo 000 rn U Q 41 CONFIEJFN PA I r Ch CA 1" V1 SN N 0 ~ a a. a U cn b U v w 6 OOOOC71 V) (j1q1)cm O r O v1 O N (Niall ~ ~ O O Le- . , I , , L i —,__1 1 _�_ 1 i i N N /"`N Q) d _ N ►; 4 O 1 _ "' o CID _s ti Cr2 _ O c4 � - o 4 • At N . 1 > - ~ A o - 4 c4 w UQ _ 4 a4 H - o at 6 -- -o 75,4 1 g 8-- , > O 0 a ~O °4ZL1 .1t) CO0 4-, o At o.Pil L) 0 - o 3 F. ctA o, r., FA ac N V1 Ues �, o w M i m 0 _ C. 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U 0 w _ 4 ¢ Cli0 O � -o w _ ...._1 1 1 G o I w 1 'n rx 4 2 co v wC4O0 CI 11 i M CI A (8:1: ii!5 w3 J 5 1/40 v) er M N — O o, oo IcE_ (i' u)uI ATsua Ma`GAL 1J 17L178 le aJ3 ttl Om a‘9--;,1 Ji >N E- 1 U IIIIIIHH ' H 2 Oo ii 0 'd O 7400 O I -00 N I — O N .I N a0i o ki O . 71 oo Q •• 0 6,a 'A 0 o U � � U 0 cn vl o w -Tr U O Co et Lii 04 G.) 1 w o O ain Po0 0 © O EA O o 0 0 0 0 0 0 0 0 - N M T,,,�1- kr) C N oo O CI U Conditions NOTE The cost in this analysis is good for the materials and/or services outlined within and shall be valid for 30 days from the date of this proposal. In order to meet your needs under this proposal with a high quality of service and responsive timing, Halliburton will be allocating limited resources and committing valuable equipment and materials to your area of operations. Accordingly, the discounts reflected in this proposal are available only for materials and services awarded on a first-call basis. Alternate pricing may apply in the event that Halliburton is awarded work on any basis other than as a first-call provider. The unit prices stated in the proposal are based on our current published prices. The projected equipment, personnel, and material needs are only estimates based on information about the work presently available to us. At the time the work is actually performed, conditions then existing may require an increase or decrease in the equipment, personnel, and/or material needs. Charges will be based upon unit prices in effect at the time the work is performed and the amount of equipment,personnel, and/or material actually utilized in the work. Taxes, if any, are not included. Applicable taxes, if any, will be added to the actual invoice. It is understood and agreed between the parties that with the exception of the subject discounts,all services performed and equipment and materials sold are provided subject to Halliburton's General Terms and Conditions contained in our current price list, (which include LIMITATION OF LIABILITY and WARRANTY provisions),and pursuant to the applicable Halliburton Work Order Contract(whether or not executed by you),unless a Master Service and/or Sales Contract applicable to the services,equipment, or materials supplied exists between your company and Halliburton,in which case the negotiated Master Contract shall govern the relationship between the parties. A copy of the latest version of our General Terms and Conditions is available from your Halliburton representative or at: http://www.halliburton.com/terms for your convenient review,and we would appreciate receiving any questions you may have about them. Should your company be interested in negotiating a Master Contract with Halliburton,our Law Department would be pleased to work with you to finalize a mutually agreeable contract. In this connection,it is also understood and agreed that Customer will continue to execute Halliburton usual field work orders and/or tickets customarily required by Halliburton in connection with the furnishing of said services,equipment,and materials. Any terms and conditions contained in purchase orders or other documents issued by the customer shall be of no effect except to confirm the type and quantity of services, equipment, and materials to be supplied to the customer. If customer does not have an approved open account with Halliburton or a mutually executed written contract with Halliburton, which dictates payment terms different than those set forth in this clause, all sums due are payable in cash at the time of performance of services or delivery of equipment,products,or materials. If customer has an approved open account,invoices are payable on the twentieth day after date of invoice. Customer agrees to pay interest on any unpaid balance from the date payable until paid at the highest lawful contract rate applicable,but never to exceed 18%per annum. In the event Halliburton employs an attorney for collection of any account,customer agrees to pay attorney fees of 20%of the unpaid account, plus all collection and court costs. CONT70,-- PIONEER civik NATURAL RESOURCES Pioneer Natural Resources 700 G Street Ste 600 Anchorage,AK 99501 DRILLING FLUIDS PROGRAM Project: Oooguruk Island Well Name: Sikumi#1 Region: North Slope Version#1 January 6,2012 Prepared for Dustin Bruce Operations Drilling Engineer Pioneer Natural Resources Prepared by Dave Soquet Technical Professional,Principal 6900 Arctic Blvd Anchorage,AK 99518 HALLIBURTON Baroid HALLIBURTDN Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska Table of Contents 1.0 Program Briefing 1.0.1 Well Data 1.0.2 Reservoir Data 1.0.3 Potential Hazards 1.0.4 Baroid Project Support team 2.0 Well Design 2.0.1 Casing Design 2.0.2 Drilling Fluid Properties 2.0.3 Drilling Fluid Objectives 3.0 Interval Discussion Interval I 3.0.1 Interval I Depths 3.0.2 Primary Products 3.0.3 Formulation 3.0.4 Potential Problems and Solutions 3.0.5 Mud Maintenance III Interval II 3.1.1 Interval I Depths 3.1.2 Primary Products 3.1.3 Formulation 3.1.4 Potential Problems and Solutions 3.1.5 Mud Maintenance Interval III 3.2.1 Interval I Depths 3.2.2 Primary Products 3.2.3 Formulation 3.2.4 Potential Problems and Solutions 3.2.5 Mud Maintenance Interval IV 3.3.1 Interval I Depths 3.3.2 Primary Products 3.3.3 Formulation 3.3.4 Potential Problems and Solutions 3.3.5 Mud Maintenance 3.3.6 Procedure from Displacing from MOBM to Brine 2 HALLIBURTON Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska 4.0 Well Volumes 4.0.1 Interval I Volumes 4.0.2 Interval II Volumes 4.0.3 Interval III Volumes 4.0.4 Total Well Volumes 5.0 Fluid Costs 6.0 Appendixes 6.0.1 DFG Hydraulics 6.0.2 Lost Circulation Recommendations 6.0.3 Risks and Contingencies 3 HALLIBURTON Pioneer Natural Resources Exploration Garold Sikumi#1 North Slope/Alaska 1.0 Program Briefing 1.0.1 Well Data Operator Pioneer Natural Resources Well No. Sikumi#1 Field/Block Exploration Location North Slope/Alaska Well Type Producer Max.Well Deviation Vertical Maximum Expected Mud Density 10.5 ppg Estimated Days 45 Days Estimated Total Project Cost $619,000 Anticipated BHST at Total Depth of well 200°F 1.0.2 Reservoir Data Primary Target Ivishak Primary Target 8,700' TVD Estimated Mud Weight for Target 9.6 ppg 1.0.3 Potential Hazards Exp.Mud Exp. Potential Drilling Depth Mud Type Weight Fracture Hazard Baroid Solutions Gradient • Proactive treatment of Surface— Sticky Clays; CONDET and DRIL-N- 3,200' MD Spud Mud 9.3 ppg N/A Gravel SLIDE • Maintain High Rheology • Additional Mud Weight 3,200' — Shale Sloughing; . LCM Strengthening 6 350' MD LSND 10.5 ppg 12.5 ppg Lost Circulation; Strategy ' Sticky Clays • Increased Rheology • Mud Weight for Shales Shale Instability; • BARO-TROL additions 6,350'— LSND 10.5 ppg 14.0 ppg Losses in Top Sag • LCM when drilling into 7,400' MD River Top Sag 4 HALLWBURTON Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska • Inhibitive Mud System • Calcium Carbonate 7,400'— BARADRIL-N 9.6 ppg 12.0 ppg Formation additions 8,700' MD Damage;Losses • ECD Management 1.0.4 Baroid Project Support Team Baroid Support Team Title Name Cell Number Office Number Email address Technical Professional Dave Soquet (907)242-5068 (907)275-2642 David.Soquet@halliburton.com Operations Leader Dave Higbie (907)242-7105 (907)275-2631 David.Higbie@halliburton.com Lead Field Rep. Joe Petitjean TBD Joe.Petitjean@halliburton.com Lead Field Rep. Ethan Laufer TBD Ethan.Laufer@halliburton.com _Stock-point Manager Brent Edmunds (907)943-1028 (907)659-2422 Brent.Edmunds@halliburton.com Stock-point Manager John Jessup (907)943-1028 (907)659-2422 John.Jessup2@halliburton.com 5 HALLiBUR7QN Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska 2.0 Well Design 2.0.1 Casing Design Hole Size Casing Depth RKB Fluid Frac Grad Size (MD/TVD) Density 16" 13-3/8" 3,200' MD/3,200' TVD 9.3 PPG N/A 12-1/4" 9-5/8" 6,350' MD/6,350' TVD 10.5 PPG 12.5 PPG 8-3/4" 7" 7,400' MD/7,400' TVD 10.5 PPG 14.0 PPG 6-1/8" 4-1/2" 8,700' MD/8,700' TVD 9.6 PPG 12.0 PPG 2.0.2 Drilling Fluid Properties Spud Mud Mud Plastic Yield API HTHP MD Weight Viscosity Point MBT ml @200deg pH LGS Initial 8.5 10-25 35-50 10-25 N/C --- 8.0-10.0 < 12.0 Final 9.2-9.6 10-25 25-35 10-25 <12 --- 8.0-10.0 < 12.0 LSND Mud Plastic Yield API HTHP MD Weight Viscosity Point MBT ml @200deg • pH LGS 3,200-6,350' 10.5 10-20 25-35 <25 4-6 8-10 8.0-10.0 `6.0 LSND Mud Plastic Yield API HTHP MD Weight Viscosity Point MBT ml @200deg pH LGS 6,350-7,400' 10.5 10-20 18-25 <25 4-6 8-10 8.0-10.0 `6.0 6% KC1 BARADRIL-N Mud Plastic Yield API HTHP MD Weight Viscosity Point MBT ml @200deg pH LGS 7,400-8,700' 9.6 15-25 15-25 <7 <4 <10 8.5-9.5 `6.0 2.0.3 Drilling Fluid Objectives Primary Objective: Drill the well safely,both with respect to personnel and the environment. 1) Provide borehole stability 2) Optimize Hole Cleaning through the use of DFG Hydraulics 3) Prevent Balling on Drilling Assembly 4) Prevent induced kicks and lost circulation 5) Prevent Diffentially Stuck Pipe 6 HALLIBURTON Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska 3.0 Interval Discussions 3.0.1 Interval Depths: 0—3,200' MD/3,200' TVD Spud Mud Mud Plastic Yield API HTHP MD Weight Viscosity Point MBT ml @200deg pH LGS Initial 8.5 10-25 35-50 10-25 N/C --- 8.0-10.0 ` 12.0 Final 9.2-9.6 10-25 25-35 10-25 <12 --- 8.0-10.0 < 12.0 3.0.2 Primary Products PRODUCTS Product Description Product Function AQUAGEL Bentonite Viscosifier BARAZAN D+ Xanthan Gum Viscosifier Caustic Soda Sodium Hydroxide Alkalinity DRIL-N-SLIDE Blend of Organics Lubricant CON DET premix Blend of anionic Surfactants Wetting Agent 3.0.3 Formulation 8.5 ppg Formulation Fresh Water - 0.94 bbl/bbl AQUAGEL - 25 ppb BARAZAN D+ - 0-1 ppb(200 viscosity) Caustic soda - 0.1 ppb (pH 9-9.5) DRIL-N-SLIDE - 0.5%v/v CON DET - 0.5%v/v 3.0.4 Potential Problems and Solutions Exp.Mud Exp. Potential Drilling Depth Mud Type Weight Fracture Hazard Baroid Solutions Gradient • Proactive treatment of Surface— Sticky Clays; CONDET and DRIL-N- 3,200' MD Spud Mud 9.3 ppg N/A Gravel SLIDE • Maintain High Rheology 3.0.5 Mud Maintenance Spud the well with maximum flow rates(-1000 gpm assuming 16"hole w/5"drill pipe)to ensure good cuttings transport. Target an initial YP in the 35-50 range with a 200-300 viscosity. After penetrating the upper gravels and the permafrost, gradually reduce the funnel viscosity to ca. 70-100 sec as the hole allows. Reduce the API FL to under 12 cc/30 min with additions of PAC-L and/or DEXTRID. As the well is vertical, pump rate and rheology are the primary mechanisms for hole cleaning. 7 HALLIBURTON Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska At interval TD, pump a high viscosity and/or high weight sweep and condition the mud for running casing. Once the casing is landed,pre-treat the system for cement with a minimum of 0.5 ppb citric acid and 1.0 ppb bicarb. Add 0.25-0.5 ppg BARATHIN or Desco CF to thin mud to target properties (converse with the cementers to see what properties they have based their design on). With an initial mud density of 8.5 ppg,please note the other issues of concern as listed below: 1. While hydrates have not been noted on previous surface holes in the area, make sure all members of the drilling team are aware of the potential of encountering gas hydrates. 2. A mud weight increase is not currently programmed for drilling the gas hydrate interval of the well, if encountered. 3. If gas hydrates are noted, treat the system with 2.0 ppb of DRILTREAT (Lecithin) and '/z%by volume DRIL-N- SLIDE. Some defoamer additions may also be necessary to help the gas break out. 4. Maintain the mud as cool as possible (under 60°F if possible). Efforts to keep the fluid cool include mudding up with cold water and diluting the mud with cold water. Plan ahead of time to ensure that the Baroid mud plant has ample time to mix the mud. Make every effort to maintain the system as clean as possible through the normal dilution process and maximization of solids control equipment application. Mud maintenance for this interval of the well is as follows: 1. Use AQUAGEL and BARAZAN D+ for viscosity and YP requirements. Initially target a viscosity of 200-300, allowing it to gradually decrease as the permafrost is exited. 2. Use PAC-L and/or DEXTRID for API filtration control. No filtrate control is planned initially but drop the fluid loss to the 12 cc range prior to exiting the permafrost. 3. Hold the pH in the 9-9.5 range with caustic soda. 4. DRIL-N-SLIDE/CON DET premix additions will be required to minimize screen blinding and bit balling. Maintain a minimum of a 1%concentration of this combination in the fluid. 5. Control penetration rates based upon the ability of the surface system to process the drilling mud. 6. Daily additions of X-Cide 207 and/or ALDACIDE G will be necessary to control bacterial action after adding PAC-L/DEXTRID. 7. Minimize dilution requirements and keep the mud as clean as possible through aggressive use of solids-control equipment. 8. Once casing is on bottom, thin the mud with BARATHIN or Desco CF to minimize channeling and improve the cement job. 16"Maximum Acceptable ROP in fph at Specified GPM and RPM GPM-4 600 700 800 800 1000 60 rpm 116 134 149 195 221 80 rpm 116 134 149 195 221 100 rpm 116 134 149 195 221 Maximize pump rate at all times. RPMs have little effect in this vertical wellbore. Periodic sweeps may be required to augment hole cleaning capabilities. 8 HALLfBURTQN Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska 3.1 Interval Discussions 3.1.1 Interval Depths: 3,200'—6,350' MD/6,350' TVD LSND Mud Plastic Yield API HTHP o MD Weight Viscosity Point MBT ml @200deg pH LGS /o 3,200-6,350' 10.5 10-20 25-35 <25 4-6 8-10 8.0-10.0 `6.0 3.1.2 Primary Products PRODUCTS Product Description Product Function DEXTRID Modified Potato Starch Filtration Control BARAZAN D+ Xanthan Gum Viscosifier Caustic Soda Sodium Hydroxide Alkalinity BAROID 41 Ground Barium Sulfate Weight Material BARO-TROL Plus Blended Hydrocarbon Powder Shale Stabilizer DRIL-N-SLIDE Blend of Organics Lubricant NXS-LUBE Sulfurized Olefin Lubricant ALDACIDE G Glutaraldehyde Solution Microbiocide 3.1.3 Formulation 10.5 ppg Formulation Fresh Water - 0.893 bbl/bbl DEXTRID - 2 ppb (API filtrate of<6) BARAZAN D+ - 1.5 ppb (as required for an initial 25+YP) Caustic Soda - 0.2 ppb (pH=8.5-9.5) BAROID 41 - 118 ppb (to 11.0 ppg) BARO-TROL Plus - 2 ppb DRIL-N-SLIDE - 1%v/v ALDACIDE G - 0.20 ppb (X-Cide 207 for rig maintenance) 3.1.4 Potential Problems and Solutions Exp.Mud Exp. Potential Drilling Depth Mud Type Weight Fracture Hazard Baroid Solutions Gradient ■ Additional Mud Weight 3,200'— Shale Sloughing; ■ LCM Strengthening 6 350' MD LSND 10.5 ppg 12.5 ppg Lost Circulation; Strategy ' Sticky Clays ■ Increased Rheology 3.1.5 Mud Maintenance 9 H�1LLlBURTQN Pioneer Natural Resources Exploration Garold Sikumi#1 North Slope/Alaska Prior to drilling out of the surface casing, pump a high viscosity sweep and displace the well to the new LSND system. Plan ahead to ensure that the mud plant has ample time to mix the mud. Initially, target a mud density of 10.5 ppg with a YP in the 25 to 35 range. Adjust the YP as required with BARAZAN D+polymer for efficient hole cleaning. Regular sweeping of the hole with high viscosity sweeps is recommended every 300' —500' drilled to supplement the hole cleaning ability of the fluid. High Vis Sweep Formulation: 50 bbl mud with 1 ppb of BARAZAN D+added. Maintain the mud as clean as possible through the use of solids control equipment and dilution as required. BAROTROL Plus will be added to the system at a concentration of 2 ppb to provide increased shale stability. Maintain the API filtrate at<6 (<4 if possible)with PAC L and DEXTRID. Daily additions of ALDACIDE G and/or X-Cide 207 should be made to control bacterial action. Caustic soda should be used for pH control. Keep the MBT as low as possible. Heavy amounts of clay are present which require additions of CON DET premix and/or DRIL-N-SLIDE to reduce BHA balling and screen blinding. Sweeping the hole prior to tripping is recommended. If possible (keeping waste minimization in mind), reduce the fluid's rheology to <20 YP after the casing is on bottom prior to starting the cement job. The well is vertical, so lubricant support is not anticipated. If lubricants become necessary, add 1% NXS-LUBE and increase in 0.5% increments as needed. If torque is suspected to be metal on metal, add EP MUDLUBE at 0.25 — 0.5% v/v. Ensure 1.0% DRIL-N-SLIDE is in the mud prior to any additions of EP MUDLUBE. Do not exceed 0.5% EP MUDLUBE without approval from town. String in LCM through the hopper when drilling through the Torok,Kuparuk(if present), and Nuiqsut. Add 5 sacks per hour each of STEELSEAL and calcium carbonate.Alternate between BARACARB 5,25,and 50 to keep a wide particle size distribution in the system. 12-1/4"Maximum Acceptable ROP in fph at Specified GPM and RPM GPM--4 600 700 800 900 1000 _ 80 rpm 140 181 234 298 346 120 rpm 140 181 234 298 346 150 rpm 140 181 234 298 346 Maximize pump rate at all times. RPMs have little effect in this vertical wellbore. 10 HALLiBURTC�N Pioneer Natural Resources Exploration Garold Sikumi#1 North Slope/Alaska 3.2 Interval Discussions 3.2.1 Interval Depths: 6,350' MD—7,400' MD/7,400' TVD LSND Mud Plastic Yield API HTHP MD Weight Viscosity Point MBT ml @200deg pH LGS 6,350-7,400' 10.5 10-20 18-25 <25 4-6 8-10 8.0-10.0 `6.0 3.2.2 Primary Products PRODUCTS Product Description Product Function DEXTRID Modified Potato Starch Filtration Control BARAZAN D+ Xanthan Gum Viscosifier Caustic Soda Sodium Hydroxide Alkalinity BAROID 41 Ground Barium Sulfate Weight Material BARO-TROL Plus Blended Hydrocarbon Powder Shale Stabilizer DRIL-N-SLIDE Blend of Organics Lubricant NXS-LUBE Sulfurized Olefin Lubricant ALDACIDE G Glutaraldehyde Solution Microbiocide 3.2.3 Formulation 10.5 ppg Formulation Fresh Water - 0.893 bbl/bbl DEXTRID - 2 ppb (API filtrate of<6) BARAZAN D+ - 1.5 ppb (as required for an initial 25+YP) Caustic Soda - 0.2 ppb (pH=8.5-9.5) BAROID 41 - 118 ppb (to 11.0 ppg) BARO-TROL Plus - 2 ppb DRIL-N-SLIDE - 1%v/v ALDACIDE G - 0.20 ppb (X-Cide 207 for rig maintenance) 3.2.4 Potential Problems and Solutions Exp.Mud Exp. Potential Drilling Depth Mud Type Weight Fracture Hazard Baroid Solutions Gradient Shale Instability; • Mud Weight for Shales 6,350' — LSND 10.5 ppg 14.0 ppg Losses in Top Sag • BARO-TROL additions 7,400' MD River ' LCM when drilling into Top Sag 11 HALL.IBLJRTQN Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska 3.2.5 Mud Maintenance If possible,fluid from the first intermediate 1 hole section should be reconditioned for use on this interval. Target a mud density of 10.5 ppg with a YP in the 18 to 25 range.Adjust the YP as required with BARAZAN-D+polymer for efficient hole cleaning. Regular sweeping of the hole with high viscosity sweeps is recommended every 300'-500' while drilling to supplement the hole cleaning ability of the fluid. High Vis Sweep Formulation: 20 bbl mud with 1 ppb of BARAZAN D+added. Maintain the mud as clean as possible through the use of solids control equipment and dilution as required. BAROTROL Plus will be added to the system at a concentration of 2 ppb to provide increased shale stability. Maintain the API filtrate at<6 (<4 if possible) with PAC L and DEXTRID. Daily additions of ALDACIDE G and/or X-Cide 207 should be made to control bacterial action. Caustic soda should be used for pH control. Keep the MBT as low as possible. The formations should firm up, so sticky clays shouldn't be an issue like they are in the intermediate 1 hole section. Large CON DET and/or DRIL-N-SILDE additions are not anticipated. Sweeping the hole prior to tripping is recommended. If possible (keeping waste minimization in mind), reduce the fluid's rheology to <20 YP after the casing is on bottom prior to starting the cement job. The well is vertical, so lubricant support is not anticipated. If lubricants become necessary, add 1% NXS-LUBE and increase in 0.5% increments as needed. If torque is suspected to be metal on metal, add EP MUDLUBE at 0.25 — 0.5% v/v. Ensure 1.0% DRIL-N-SLIDE is in the mud prior to any additions of EP MUDLUBE. Do not exceed 0.5% EP MUDLUBE without approval from town. LCM should be strung in through the hopper from 100' above the Sag River to TD. Add 5 sacks per hour each of STEELSEAL,and calcium carbonate.Alternate between BARACARB 5,25,and 50 to keep a wide particle size distribution in the system. 8-3/4"Maximum Acceptable ROP in fph at Specified GPM and RPM GPM > 400 450 500 550 600 80 rpm 157 177 189 215 242 120 rpm 157 177 189 215 242 150 rpm 157 177 189 215 242 Maximize pump rate at all times. RPMs have little effect in this vertical wellbore. 12 HALLiBURTQN Pioneer Natural Resources Exploration Garold Sikumi#1 North Slope/Alaska 3.3 Interval Discussions 3.3.1 Interval Depths: 7,400' MD—8,700' MD/6,225' TVD 6% KCl BARADRIL-N Mud Plastic Yield API HTHP MD Weight Viscosity Point MBT ml @200deg pH LGS 7,400-8,700' 9.6 15-25 15-25 <7 <4 <10 8.5-9.5 `6.0 3.3.2 Primary Products PRODUCTS Product Description Product Function N-DRIL HT+ Clarified Starch Filtration Control N-VIS Clarified xanthan Gum Viscosifier Potassium Hydroxide Potassium Hydroxide Alkalinity Potassium Chloride Potassium Chloride Ionic Inhibition BARACARB 5,25, 50 Calcium Carbonate Bridging Agent DRIL-N-SLIDE Blend of Organics Lubricant NXS-LUBE Sulfurized Olefin Lubricant ALDACIDE G Glutaraldehyde Solution Microbiocide BARACOR 700 Blend of Phosphonates Corrosion Inhibitor BARASCAV D Powdered Sodium Sulfite Corrosion Inhibitor 3.3.3 Formulation 9.6 ppa Formulation Fresh Water - 0.889 bbl/bbl N-VIS - 1.5 ppb (as required for an initial 15 YP) N-DRIL HT+ - 2 ppb (<4 API filtrate) KCl - 21 ppb KOH - 0.1-.25 ppb (pH= 8.5-9.5) BARACARB 55 - 21 ppb BARACARB 25 - 21 ppb BARACARB 50 - 21 ppb (to 9.6 ppg) DRIL-N-SLIDE - 0.5%v/v ALDACIDE-G - 0.20 ppb (X-cide 207 for rig maintenance) BARACOR 700 - 1 ppb BARASCAV D - 0.5 ppb (to be added at the rig when first circulating) 3.2.4 Potential Problems and Solutions Exp.Mud Exp. Potential Drilling Depth Mud Type Fracture Baroid Solutions Weight Gradient Hazard ■ Inhibitive Mud System 7,400' — BARADRIL-N 9.6 ppg 12.0 ppg Formation • Calcium Carbonate add 8,700' MD Damage;Losses • ECD Management 13 HALLiBURTC�N Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska 3.2.5 Mud Maintenance Maintain the density at 9.6 ppg unless hole conditions dictate otherwise. If additional mud weight is required, use BARACARB(s), KCl, and/or salt. Consult with Baroid Technical Professional prior to weight up to ensure neither too much calcium carbonate nor salt are added to the system. Do not use barite in this system. Some whole mud dilutions may be required to keep the low gravity solids and MBT to a minimum. Adjust the YP as required with N-VIS polymer for efficient hole cleaning. Regular sweeping of the hole with high viscosity sweeps is recommended every 300-500 ft while drilling to supplement the hole cleaning ability of the fluid. Maintain the mud as clean as possible through the use of solids control equipment and dilution as required. Maintain the API filtrate at <4 cc/30 min with N-DRIL HT+, and BARACARB 5/25/50. Daily additions of X-Cide 207 should be made to control bacterial action. KOH should be used for pH control. Maintain the KC1 concentration at 6%. The chloride content of the fluid should be—30,000 ppm. Sweeping the hole prior to tripping is recommended. If possible(keeping waste minimization in mind), reduce the fluid's rheology to<15 YP after the casing is on bottom prior to starting the cement job. The well is vertical, so lubricant support is not anticipated. If lubricants become necessary, add 1% NXS-LUBE and increase in 0.5% increments as needed. If torque is suspected to be metal on metal, add EP MUDLUBE at 0.25 — 0.5% v/v. Ensure 1.0% DRIL-N-SLIDE is in the mud prior to any additions of EP MUDLUBE. Do not exceed 0.5% EP MUDLUBE without approval from town.Do not add EP MUDLUBE in the production interval without approval from town. 6-1/8"Maximum Acceptable ROP in fph at Specified GPM and RPM GPM—* 180 200 220 240 260 80 rpm 153 176 212 242 279 120 rpm 153 176 212 242 279 150 rpm 153 176 212 242 279 Maximize pump rate at all times.RPMs have little effect in this vertical wellbore. 14 HALLIBWRT[7N Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska 3.2.6 Procedure for displacing WBM to Brine 1. Flush all lines with water and thoroughly clean pits. Take on brine. 2. Pump 35 bbl(5 minutes of contact time assuming 7 bbl/min pump rate)BARAKLEAN FL spacer 3. Chase with 11 bbl(500' annular volume)hi-vis spacer 4. Chase with filtered NaCl brine. 5. Monitor returns. Discard mud, spacers,and interface at surface. Once returns are clean,take returns to pits. Clean out trough and under shakers. 9.0 ppg Brine Formulation Fresh Water - 0.962 bbl/bbl Salt - 41 ppb BARAKLEAN FL Spacer Formulation (35 bbl) 9.0 ppg brine - 34 bbl BARAKLEAN FL - 1 drum Hi Vis Spacer Formulation (11 bbl) 9.0 ppg brine - 11 bbl BARAZAN D+ - 11.5 ppb (40+YP) • Monitor pump strokes to obtain correct displacement. • Maintain maximum pump rates. • Have the drill pipe as deep as possible as the brine exits the pipe. • Rotate the pipe as rapidly as allowed during the actual displacement. • Do not shut down during the displacement. • Clean possum belly and any troughs which were used to transport mud. • Apply a minimum contact time of 5 minutes for the BARAKLEAN FL spacer to ensure thorough cleaning of the casing. A 7 bbl/min flowrate is assumed. If flowrates differ significantly,adjust the BARAKLEAN FL spacer size accordingly. One drum will treat up to 50 bbl of brine. 15 HALLIBURTON Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska 4.0 Well Volumes 4.0.1 Interval I Volumes At spud approximately 800 barrels of new fluid will be built. Dilution rates for the 16" section are anticipated at 1.2 bbUft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial build 600 800 1200 Dilution 2500 3900 4800 Total 3100 4700 6000 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttings Volume 880 1000 1200 Wetting Fluid 440 1000 2400 Total 1320 2000 3600 4.0.2 Interval II Volumes Dilution rates for the 12-1/4"intermediate 1 section are anticipated at 0.8 bbUft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial build 1100 1300 1500 Dilution 1600 2500 3800 Total 2700 3800 5300 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttings Volume 460 510 570 Wetting Fluid 230 510 1140 Total 690 1020 1710 4.0.3 Interval III Volumes Dilution rates for the 8-3/4"intermediate section are anticipated at 0.6 bbUft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial build 0 500 1300 Dilution 400 600 1200 Total 400 1100 2500 16 FIALLIBUF�T�N Pioneer Natural Resources Exploration 2trolcl Sikumi#1 North Slope/Alaska Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttings Volume 80 90 100 Wetting Fluid 40 90 200 Total 120 180 300 4.0.4 Interval IV Volumes Dilution rates for the 6-1/8"production section are anticipated at 0.35 bbl/ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial build 900 1100 1300 Dilution 300 500 800 Total 1200 1600 2100 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttings Volume 50 55 60 Wetting Fluid 30 55 120 Total 80 110 180 5.0 Fluid Costs P10 P50 P90 16" Surface 38,000 52,000 87,000 12-1/4"Intermediate 218,000 312,000 498,000 8-3/4"Intermediate 101,000 178,000 266,000 6-1/8"Production 44,000 55,000 102,000 Completion 11,000 22,000 28,000 Total $412,000 $619,000 $981,000 7.0 Appendixes 7.0.1 DFG Hydraulics 17 HALLIBURTt7N Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska Surface—Modeled hole cleaning Opetr..Pareer. Ng 2/E : Spud Mud 2052yG11higidal Contractor:llicfs Wet in 111 : Pow Rafe:800 On ROP:100/111 2.052%Lulhg Elf Cuttings 1rarapal Avenge Hula ECD Mud Weghl=9.4h/gJ CultiagOia=25n Load,% Elf avg Z , V,It/in Amdle NO Al. s@100WO[poi/HC.80rpm.5m/C-3m/ 231 I 0 w/Ci =I log_ 1 _ —{5.42/S x 2340,01I ii ti. 2000 1.68 — rrr 5.x 3,x 660,Oft 16'nHC 3200.0( ,.'�0 8.x 2813 x 200Dft i I I r I I I 132900 9.510/ 11g4 5 10 15 20 25 0 50 100 0 51 102 30 6990 940 990 10.40 Ante Hole cleaning is good at 800 gpm and 100 rpm at an ROP of 100 ft/hr. Pipe rotation has little effect in a vertical wellbore. Pump rates of 800+gpm are required at ROPs over 150 fph. 18 HALLIBURTON Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska 12-1/4"Intermediate—Modeled hole cleaning Opeda:kw Rig 27E : LSND 1.NM ingidd Canbada.Nabas Wet SAuei111 : fbwRate.800gdhm ROP.10DMr 1.233%CulhgEl Di* import Avenge Hde ECD MudWei .105 NO Wig Dia=.25n Load,X Ell % V,Rhin 4 6lgd R•1s@3Dil 0rpmIHG80ipn5m1C m1 1,45 0 w1Cd 1000— ,iii 5.- \\ .--1 s 4216 s 5774.0 fl 3000 12415n 1 11 IRO(321D)11 — —' 1.24 10701/10.884 6/gd • 500D- u, L ® II /15.N31425Oft i 1225npp x2i0�35f0,D(8 1-1-1.s2.813k151.0ft 640 10.712/10.850 605 1D 15 25 o 50 100 o 114 228 30 so 93 1050 1HC 1,50 .84CUire Modeling indicates very good hole cleaning at 800gpm, 80 rpm, and 100 ft/hr. Pipe rotation has little effect in a vertical wellbore. 19 HALLIBURTQN Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska 12-1/4" Intermediate—BHA Surge/Swab—Close Ended Trip Equivalent Weight Operator Pioneer Country USA Contractor Nabors User Dave Soquet Rig 27E Well Sikumi#1 Equivalent Mud Weight, lb/gal 10.2 10.3 10.4 10.5 10.6 10.7 10.8 i 1000 III1II1IIF% IiIiHHHHH 011111111111111 2000 11111111111! 1 1111111111 O 3000 11111111111111111i 1111111111 • 4000cD ITtIIIIIHIh!IiIHIIII 5000 11111111i n. M 6000 11111111111111111111111 '1 111117000 -.. —991—Swab @ 45.00 ft/min Swab @ 90.00 ft/min -99 135.00 ft/min —11Swab @ 180.00 ft/min —II—Surge @ 45.00 ft/min Surge @ 90.00 ft/min —11—Surge @ 135.00 ft/min - Surge@ 180.00 ft/min DFG v4.0.1 Baroid Fluid Services 11/9/11 20 HALLIBURTON CDNFIDENJ1p Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska 12-1/4"Intermediate—9-5/8"Casing Run Surge/Swab—Close Ended Trip Equivalent Weight Operator Roneer Country USA Contractor Nabors User Dave Soquet Rig 27E Well Sikumi#1 Equivalent Mud Weight, lb/gal 9.5 10 10.5 11 11.5 0 0 1000 z. 2000 / ►` a. 3000 a) u9 4000 rn ca a) 21\\1\ 5000 1 6000 7000 - —6—Swab @ 20.00 ft/m i n —13—Swab @ 40.00 ft/min Swab@ 60.00 ft/min —la—Swab @ 80.00 ft/min Surge @ 20.00 ft/min Surge@ 40.00 ft/min —11ISurge @ 60.00 ft/min Surge @ 80.00 ft/min DFG v4.0.1 Baroid Fluid Services 11/9/11 21 HALLI'BURTON Pioneer Natural Resources Exploration 8aroic. Sikumi#1 North Slope/Alaska 8-3/4"Intermediate—Modeled hole cleaning OperaIx Pioneer Rig:2/E : MD .845%CuthgTUN Coahador.Wm Wel Siui 01 : R m Rate=550 gi1rr ROP:100 f 1i: .841%Cutt g Eff Cut*: Impel Average Hale ECD Mubieght=10.5b/O CulhgDia=.25i Load,% EH avg% V,Hhn Angle WO R.1 s.@ 11 0141rpm/HG80rpor5m1C=3m1 Cof w1Cut. __., ir,i ,.. :, „..„ . \, .. , ,' . 2000 fl 3000- —j 5.0.216 ft \\7 a ry� 5000. ‘i \\ 8135n 10934/11.044 b/gal N 5.N 3.x 425.0 ft . 10 'ILI ,, 111 44 0/5e 6.15 N 2.813 x 151,00 .00 10D II[ 74900 7100.0[1400.0Jft i i _ I I 'r t 1011111051 bb/05 10 15 20 25 0 50 0 211 435 30 190 1050 11.E 11.50 .5lit COke Modeling indicates excellent hole cleaning at 550 gpm, 80 rpm, and 100 ft/hr. Again, pipe rotation has little effect in a vertical wellbore. 22 HALLlBURT�N Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska 8-3/4"Intermediate—BHA Surge/Swab Trip Equivalent Weight Operator pioneer Country USA Contractor Nabors User Dave Soquet Rig 27E Well Sikumi#1 Equivalent Mud Weight, lb/gal 10 10.2 10.4 10.6 10.8 11 0 ii 1000 SII 2000 A ' 3000 A / '" I a. w . w -0 4000 E �1 . m to 2 5000 6000 " ' II . 7000 " u N 8000 — —fi—Swab @ 45.00 ft/min Swab @ 90.00 ft/min —4—Swab @ 135.00 ft/min —Swab@ 180.00 ft/min • ' Surge@ 45.00 ft/min Surge@ 90.00—NI—Surge@ 135.00 ft/min —I.—Surge@ 180.00 ft/min DFG v4.0.1 Baroid Fluid Services 11/9/11 23 Pioneer Natural Resources HALL.IBURTON Exploration Baroid Sikumi#1 North Slope/Alaska 8-3/4" Intermediate—7" Liner Run Surge/Swab—Close Ended Trip Equivalent Weight Operator Pioneer Country USA Contractor Nabors User Dave Soquet Rig 27E Well Sikumi#1 Equivalent Mud Weight, lb/gal 10 10.2 10.4 10.6 10.8 11 0 1000 2000 '" 1 ' 100 • $ 3000 o.m -0 4000 ' ' k' If 11 (n CD 5000 6000 11 ri7000 f ' Y 8000 —a—Swa b @ 20.00 ft/m i n Swab@ 40.00 ft/min Swa b @ 60.00 ft/m i n —0—Swa b @ 80.00 ft/m i n Surge @ 20.00 ft/min Surge @ 40.00 ft/min —0—Surge @ 60.00 ft/min —Surge @ 80.00 ft/min DFG v4.0.1 Baroid Fluid Services 11/9/11 24 HALLI I BURTQN Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska Production—Modeled hole cleaning Operator beer Rig 21E : BARbDRIINI 1,271%Le*idal Waft Niers Wel Skuri1: FbrrRate=24O Oval ROP.10)11k 1.191XCri gEll Wigs Tramped Average He ECD lied Weiii=9661gd Ging Dia=.15o load,Z EHavgZ V,uin Angle , 61ga1 111 s@100<Uh1ppm1RHO pia 1Wm1 1.38 ,i aili 1000 - 2000 ,. \3000 —, , \ 000: ~ 4 --p 4,x 3,34 x 0330,0 It 5000 III - - 1 0835n .,r,n016200.0Jt —� 1.OB 939519.962 NO 1000• s \ \ 6.216n LI 1010.011 `'– - 4.x 2.533 x 110.n9.912110.073 blgi j' ;iii. 11 N22506.01t OD RAO FOO 0JIt 4.15 x 1.25 x 12,1,0 It T 1 10 9.% 110.113 b/gd 5 10 15 ?D 25 0 50 100 0 128 2% 90 950 1000 ¶E 1.5hi OJT 6oe Modeling indicates excellent hole cleaning at 240 gpm, 80 rpm, and 100 ft/hr. Again, pipe rotation has little effect in a vertical wellbore. 25 HALLIBURTON Pioneer Natural Resources Exploration Garold Sikumi#1 North Slope/Alaska Production—BHA Surge/Swab Trip Equivalent Weight Operator Pioneer Country USA Contractor Nabors User Dave Soquet Rig 27E - Well Sikumi 1 Equivalent Mud Weight, Ib/gal 9 9.2 9.4 9.6 9.8 10 10.2 0 1,1 1000 I 2000 3000 r ft s l/�r' Ii 4000 CI li �. 5000 - -- /4, w M I4 m 6000 I l'\' 2411111 7000 i i r 8000 1 r 9000 • 10000 = -- -dr-Swab @ 45.00 ft/min $-Swab @ 90.00 ft/min —0-Swab @ 135.00ft/min -6-Swab 180.00 ft/min Surge @ 45.00 ft/min Surge @ 90.00 ft/min —II— @ 135.00 ft/min +•Surge@ 180.00 ft/min DFG v4.0.1 Baroid Fluid Services 11/9/11 26 HALLIBUATON CONFIDENTIALPioneer Natural Resources Exploration Barak! Sikumi#1 North Slope/Alaska Production—3-1/2"Casing Run Surge/Swab—Close Ended Trip Equivalent Weight Operator Pioneer Country USA Contractor Nabors User Dave Soquet Rig 27E Well Sikumi 1 Equivalent Mud Weight, lb/gal 9.3 9.4 9.5 9.6 9.7 9.8 9.9 0 1000 11 :.. 111 000 � II111111111111 2 111111111111141111111111111 3000 iiiniiiniuuiiiuiuiuiuuuiui 11111111 =11l �� IIEI11111111111 4000 1 ,41111 3 11111111111 111111 . E a 5000 ,�� 111111 •Y' 111111L 11111111111 6000 1111111112g1111111L 7000 IHhIIIIi! iIIHIIIIIHHi11111111 8000 11111111ii1111111111, 9000 1111116111111111111i 10000 uiiuiiuiiinhiiiiiuiiiuiuiiui —6—Swab @ 20.00 ft/min - Swab @ 40.00 ft/min —4—Swab @ 60.00 ft/min - —Swab @ 80.00 ft/m i n "Surge @ 20.00 ft/min Surge @ 40.00 ft/min fSurge@ 60.00 ft/min —}Surge@ 80.00 ft/min DFG v4.0.1 Baroid Fluid Services 11/9/11 27 HALLIBURT�N Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska 7.0.2 Lost Circulation Recommendation Losses Oooguruk Lost Circulation Decision Tree fl Payzone Mud Systems • + + Partial Seepage 20.60 bbllhr Severe Total 5.20 bbl/hr Static Static 60-200 bbllhr Static >200 bbllhr Static V V Treat Active System Treat Active System + + with 5 sx/hr Baracarb with 10 sx/hr Baracarb 60-150 bbl/hr Static 150-200 bbl/hr Static Drill Across Fault 5/25 50 • • + Drill Across Fault Drill Across Fault Contact the Engineer lynaml Dynamic 100 ppb LCM/Mud Pill: on call to determine ft Losses<15 Yes Contact the Losses<15 Ye 20 ppb Baroseal f additional LCM bbl/hr I Engineer on call to bbl/hr 20 ppb Baracarbg treatments are to be 30 ppb Barofibre determine if made or to proceed to Drill Ahead Drill Ahead 20 ppb SteelSeal additional LCM No 10 ppb Baracarb 150 mud cap drilling No treatments are to Vbe made or to Increase Treatment to 50 ppb LCMIMud Pill: V proceed to mud 10 sx/hr Baracarb 5/25 Contact the cap drilling i 20 bbls Base mud Engineer on call to 10 ppb Baracarb 5 determine if 20 ppb Baracarb25 additional LCM Dynamic 20 ppb Baracarb 50 treatments are to Losses<15 Yes be made or to bbl/hr proceed to mud Drill Ahead cap drilling No 20 ppb LCMIMud Pill: Dyeamic LOSSeS<20 Yes 20 bbls base mud bbllhr 10 ppb Baracarb 25 Drill Ahead 10 ppb Baracarb 50 No V Contact the Engineer 1)Pioneer must approve any steps past PARTIAL losses. 2)Drill across fault or loss zone 1.5-2.0 times the length of the on call to determine if throw before spotting any high stop-loss pills 1 ynamic additional LCM 3)PBL sub should be run in BHA to spot pills if'Partial Loss'cases or Losses<15 Yes treatments are to be above are anticipated prior to drilling to allow the spotting of LCM bbl/hr made or to proceed to pills. 4)LCM pill volume=300'-600'column based upon actual hole Drill Ahead mud cap drilling diameter. 5)PRIOR TO ANY LCM PILL,APPROPRIATE DISCUSSIONS AT No THE RIG MUST BE MADE TO MINIMIZE THE POTENTIAL FOR V PLUGGING THE DRILL STRING. Proceed to'Partial Losses'Pill J 28 HALLiBURTON Pioneer Natural Resources Exploration Baroid Sikumi#1 North Slope/Alaska 6.0.3 Risks and Contingencies Lost Circulation: Preventing the initiation of lost returns should be a primary goal of the drilling fluid in the well. To that end the rheology of the system has been reduced while still providing ample hole cleaning. Maintaining a low ECD while circulating, and eliminating high pressure spikes while tripping,will both go a long ways toward reducing the risk of lost returns. Should lost returns occur,check with MWD personnel prior to pumping any pills to ensure that no plugging will occur. Wellbore Instability: The HRZ and Kingak can be problematic. Ensure the equivalent mud weight is 10.5 ppg prior to entering the HRZ and reduce the HTHP to less than 10cc. Should any signs of shale splintering be seen,immediately raise the EMW a minimum of 0.4 ppg. Keep instantaneous surge/swab limited. Awareness by the rig crews as to the fragility of these shales to mechanical disturbance is of great importance. Stuck pipe: Two forms of stuck pipe are possible. If the wellbore exhibits severe instability, pack-off events can occur, mechanically sticking the pipe. If pulling up into a tight spot,do not jar up further,but attempt to get below the problem. Backreaming is an invitation to packing off and resulting stuck pipe, and backreaming must be done with care and only when necessary. If stuck pipe occurs across a sand and there are indications of differential sticking,there are drilling fluid solutions. If possible, reducing the fluid density by a minimum of 0.5 ppg may provide some relief. Hole Cleaning: Maintaining the programmed flow properties are essential to a successful completion of this well. Any indication of a failure to keep the annulus clean of excess cuttings(PWD increases,drag,torque,partial packing off)should be countered by increasing the circulation time on subsequent connections and prior to trips. The returns at surface of all pills should be monitored at the shakers and documented to gauge their effectiveness.When circulating bottoms up prior to POH,it is advisable to pull one stand every half hour to reduce the hole washout effects of circulating over one short interval. Long circulation times should be avoided if the bit/BHA are in one of the mudstone/clay sections. Pipe should be kept moving at all times during this circulation period.Pump rate is the most critical factor in a vertical wellbore. ROP rates above the recommended levels will require an increased frequency of the following remedial hole cleaning practices: • wiper trips • back reaming • extended periods of circulation(with maximum gpm) • hole cleaning sweeps(change flow regime of base mud by using fibers,density or rheology for carrying capacity) • connection practices-employing extended gpm,rpm and back reaming during the connection 29 aJ) PRA 3601 C Street Suite 1424 Anchorage,AK 99503 907-272-1232(voice) 907-272-1344(fax) info@petroak.corn www.petroak.corn To: Terry Jensen Pioneer Natural Resources, Alaska From: Greg Jurkowski, PRA Geoscientist Date: July 15, 2011 Subject: Drilling Hazards and risk analysis of the proposed Sikumi#1 well (Surface Location: 4471' FSL, 1260' FEL, Sec. 16, T13N, R7E, Umiat). The purpose of this letter is to document the seismic analysis of potential drilling hazards for the proposed Sikumi #1 well location, estimated to spud in February/March, 2012. I have examined 3D seismic data, seismic velocity information, and offset well logs for the shallow hazard and pore pressure risk analysis of this well. My evaluation of this data shows no indications of drilling hazards or risks. The evaluation is constrained by the limitations of seismic imaging, and as such, are not definitive. Therefore, PNRA should work on the assumption that the possibility of encountering drilling hazards exists and work to establish processes to mitigate those risks while drilling. The offset logs and drilling data used for this analysis were taken from the Colville Delta#1 and Kalubik#1. I examined 3D seismic and velocities from the Oooguruk 3D survey(Figure 1), that was assembled from 3 separate surveys (Kalubik, Fiord, and Tamayayak) in 2007, and reprocessed in 2011. Permafrost, Gas Hydrates, Shallow Gas Well data has been used to map the permafrost structure in the region. The structure can be represented by a wedge that deepens offshore. The top of the permafrost is interpolated from / nearby wells to be—600ftss at the well location, with a thickness of 930ft. Beneath the permafrost, shelf and delta plain deposits of the Sagavanirktok formation dip down to the northeast, and are underlain by Schrader Bluff and Torok formations. A northeast-southwest seismic traverse (Figure 2)through Colville Delta#1, Sikumi #1, and Kalubik#1, with approximate top permafrost(in yellow) and base permafrost(in red) structures converted to time. There is little acoustic difference between hydrates and permafrost, so most amplitude anomalies within the interval are more likely attributable to lithology variations and noise associated with seismic acquisition. A 460' interval of elevated Cl was detected in the Kalubik#1 well with a base at 1617ftss. Although this has been interpreted as a possible hydrate interval, there was neither free gas encountered nor any operational drilling issues that occurred. No other wells bracketing the proposed location have any evidence of hydrates. The seismic indicates that this interval thins in the direction of the Sikumi location, and the blue and gold reflectors on Figure 2 would indicate that this seismic interval thins to less than 100ft. For the purposes of well planning, a possible v" hydrate interval should be planned for, although it is not likely to affect drilling operations. There are no other seismic indicators of free gas in the upper part of this section within 2000ft of the well location. Faults On Figure 2 there are some elevated amplitudes near the Colville Delta#1 well that occur in the vicinity of an interpreted fault that extends from the base of the permafrost into the Cretaceous section. There were no significant hydrocarbons detected at the base of the permafrost in the Colville Delta#1 well. Although some growth faults associated with deposition of the Sagavanirktok formation may be present in the shallow,poorly consolidated sediments, there do not appear to be any major faults extending into the Torok within 2000' of the proposed well. Pressure Analysis of nearby well data as well as seismic velocities indicates that the Sikumi#1 well will penetrate a normally pressurized section from surface to TD. Mud log and sonic log data from Colville Delta#1, and Kalubik#1 indicate that these wells were normally pressured. The seismic °" velocities near the location of Sikumi#1 suggest this well should be similarly pressured. The seismic stacking velocity data near the Colville Delta#1 location is converted to interval velocity using the Dix equation, and times are converted to depths using interval velocities. The interval velocities are then inverted to interval transit time (ITT) and plotted at the mid interval depth on the Colville Delta#1 sonic log in Figure 3. The sonic log data at Colville Delta#1 correlates well with seismic velocities converted to ITT near the Colville Delta#1 well location. A similarly good correlation exists for the Kalubik#1 well(Figure 4). Figure 5 shows the Colville Delta#1 mud data and sonic log. The sonic log and mud data support a normal pressure gradient in this well. The good correlation between seismic velocities at the proposed well location and the Colville Delta#1 sonic log, suggests that similar pressures will be encountered to TD in the Sikumi well. A similar comparison is given for the Kalubik#1 well in Figure 6. The Colville Delta#1 and Kalubik#1 wells were drilled with mud weights ranging from 8.9 to 10.5ppg, with maximum weights at 10.5ppg. As it is general practice to drill overbalanced,the in-situ pressures are likely less. Bottom-hole mud weight for Colville Delta#1 was 10.4ppg suggesting normal pressure gradients at depths of greater than 9400'MD. The mud data from offset wells and seismic velocities at the proposed location of Sikumi #1 which compare favorably with the Colville Delta#1 velocities indicate normal pressure will be encountered to Sikumi#1 TD. -- CONFInPAIT!,, il 371900 381900 391900 401900 411900 421900 431900 441900 451900 461900 471900 4819 491900 501900 511900 521900 FXrIeet 11111111111 W ® u ® : : : 6070011 1 : t si 6060000 00100®on n • n , n u ■ ORMEREMOMMO r ala n a 3 a :7-... 60501 r1 SIOEa00® a ElliEr©, ` n. a a n :I 1111 000RM000 a EE NV 16 11 ■ a $ e�r � 1 `{'1/1 Kalubik #1 I ° ° a � r 1 n(r :IS III 00000 , �II11� ' 11 • • Y ®iimE Fl u� ■ u n n t9 1 , Nigilik Colville Delta#1 :: SW ORE SINN 1 EINIMBUFA / _ �. n On. a a n iri �1 6,31 1111 4 a \1 InI1 ��a�� ;`� =fiisll� i 1 . a ■ 1. rnnll��02 � � � Fe a > . n 11111412En 46,,,.,o6fer' ' -,,Wild 160000, 710111403016461 %I illighilliaktUMwww n a ® n n 19 113 ® a 4:111111516611W1911111111,11111 k� 4 �r . �0` ��'��M�� a Eno 1 I1IIt4�00�_ � � ,..r, 6..,.. , 1 le jr :hI ■ _ °m °a411 : 4 •:IIII1V1I � aa a °a °a a mumwiry ■. a. a .a a • In1 O�2a�f� : . 1 • a t 1 °. a T 9 9 " W ° U °a °) .1 .a a a 7 300 9 ■ ° /i •nnlI ��i�l,�� 1'. ° ° n w ■ u a .■ • .■ e N P 0 5A ■ ■ 14 sona; 1. n a a `a `a IN W■ FL $. s a a a a ,..i.111111117" .11111111111 - a a 77 a a a a a a a a a a a a a a ■ a a v a I. f---; i Figure 1. Outline showing the extent of the Oooguruk 3D seismic survey. ._./Z. Civ $ Co[villeDelta?il Sikumi f#1 KalLbk#1 NE i. 19Y,Y I 11. Iwo I I.I l to161. 'a.. K670� 11'+.'1 IJ1iS . ... 10.1( 1n71) T' vim. - 0101 ._ r r=• `-� Y i..�.r-"-� ._ ..... _ Top Permafrost —• 3t _' -- Top Hydrate(?)Sands q a Base Hydrate(?)Sancic r Redacted Confidential Seismic Data Colville Delta #1 Sonic and Seismic ITT ITT(microsec/ft) I 0 y i 1000 » too ijo + z + ; 1000 1. ++ _ Base Permafrost C IWe Sak–.— . 4.- F -2000 /k+ --------- ------ ! -3000 i Redacted Confidential Seismic Data Kalubik #1 Sonic and Seismic ITT ITT(microsec/ft) 0 —�— —( 1000 , 100 1 ------- –, "F- ------ -1000 + Base Permafrost West.ca k —� ------ -2000 ASt- ------- -- • ----------- -3000 D Redacted Confidential Seismic Data L g ~ O r m n = m n 0 V • V u 0 8 00 0 O a CO 61 .0 CD c • 0 vui to vi c 1it. I I 6t = 1 4 E U o CO CU r0 41 y W H 3 N .-.__...... ....... CO 73 rl 4-- . T co C M 0 13 U S e o a ~ 4t 1-4s c .■ 1 ill Itt 3 q . G o u N C I M A I a a • 4 • o 40)°0� r s .1 Y S CO u .}-J E (a I 4 ‘446,41110114141111cu 0 col y 7.3 4--.0 ) (a Y _ 0 m a c v m _, f la 1 0 2 y -4R V a b o § 5 , - Well Planning - Pioneer - Oooguruk Sikumi #1 Sikumi #1 Sikumi Sikumi #1 =pa Plan: Sikumi #1 wp02 Standard Proposal Report 13 December, 2011 . HALLIBURTON Sperry Drilling Services HALLIBUI-.rON COMPANY DETAILS:Well Planning-Pioneer-Ooogurwc REFERENCE INFORMA11ON PIONEER Co-ordinate(WE)Reference:Well Sikumi,True North Calculation Method: Minimum Curvature Vertical(TVD)Reference:Mean Sea Level(System) NATURAL RESOURCES Sperry Grilling Error System:ISCWSA Measured Depth Reference: Mean Sea Level(System) Scan Method: Tray.Cylinder North Calculation Method:Minimum Curvature Error Surface: Elliptical Conic Warning Method: Rules Based Project:Sikumi#1 Site: Sikumi#1 CASING DETAILS SURVEY PROGRAM Well: Sikumi TVD MD Name Size Date:2011-12-13T00:00:00 Validated:Yes Version: Wellbore: Sikumi#1 3021.00 3021.00 13 3/8" 13.375 6350.00 6350.00 9 5/8" 9.625 Depth From Depth To Survey/Plan Tool Plan:Sikumi#1 wp02 7374.00 7374.00 7" 7.000 0.00 500.00 Sikumi#1 wp02(Sikumi#1) SR-Gyro-SS 8474.00 8474.00 3.5" 3.500 500.00 8644.00 Sikumi#1 wp02(Sikumi#1) MWD+IFR2+MS+sac WELL DETAILS: Sikumi SECTION DETAILS Ground Level: 0.00 Sec MD Inc Azi ND +WS +E/-W DLeg TFace VSec Target +N/-5 +E/-W Northing Easting Latittude Longitude Slot 1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6027468.00 459258.00 70°29'9.515 N 150°19'58.740 W 2 864.4.00 0.00 0.00 8644.00 0.00 0.00 0.00 0.00 0.00 WELLBORE TARGET DETAILS(MAP CO-ORDINATES) Name TVD +N/-S +E/-W Northing Easting Shape DDI _0.00 Nuna V1 T1 4775.00 0.00 0.00 6027468.00 459258.00 Point SagRiver V1 T1 7360.00 0.00 0.00 6027468.00 459258.00 Point Top Ivishak V1 T1 7680.00 0.00 0.00 6027468.00 459258.00 Point Base Ivishak V1 T1 8360.00 0.00 0.00 6027468.00 459258.00 Point FORMATION TOP DETAILS TVDPath MDPath Formation - 4 2033.00 2033.00 West Sak - W 2642.00 2642.00 Cret Tuff 0- 2957.00 2957.00 Hue 2 shale - 4088.00 4088.00 Brook 2b - 4836.00 4836.00 Top Torok 5002.00 5002.00 Base Torok 600- West Sak 5268.00 5268.00 Torok Sh 1 - 5670.00 5670.00 Top HRZ 5802.00 5802.00 Base HRZ Cret Tuff \ 5851.00 5851.00 Kalubik Mkr 1200- 5927.00 5927.00 LCUC Hue 2 shale 6040.00 6040.00 BCU - Brook 2b 6086.00 6086.00 Nuiqsut s �\ �\ 6203.00 6203.00 Nuiq Base 1800- ` ` ` ` 6214.00 6214.00 Nechelik - Top Torok `\ `` \ ` 6269.00 6269.00 Nechelik Base - S • • ‘ 7318.00 7318.00 Sag River • • ` ` 7398.00 7398.00 Shublik Upr _ 2400- `• •. `` • 7548.00 7548.00 Shublik Lwr - Base Torok ` ` \ 7638.00 7638.00 Ivishak _ `• • `\ 13 3/8" 7719.00 7719.00 Ivish Upr • ` 7952.00 7952.00 Ivishak Mid - • ` �• i 8191.00 8191.00 Ivishak Lwr 3000-_ Torok Sh 1 `‘ . ‘ ` 8318.00 8318.00 Kavik c `• •` - ` ` • 0 3600- Top HRZ •. �` �. ` to - ` s s - = Base HRZ', \ •` CL 4200- `\ 0 Kalublk Mkr. S Nuna V1 Ti cti = •` • ``` 112- KupC` - 4800- • .• . �` ` - - • a) - LCU S - 2 - .` 75- F- 5400- BCU- • - Nuigsut - c - -- 95/8" 37- 6000_ NuigBase .___ ____ Nechelik -- - _'; v - 6600- Nechelik Base +. _ .t 0- Sag River T" SagRiver V1 Ti o Z 7200- Shublik Upr.``___' '� - Sikumi/Sikumi#1 wp02 __- Top Ivishak V1 Ti t Shublik Lwr- -_----- o -37- 7800- Ivishak "",_-_- Base Ivishak VI TI _ 1 - Ivish Upr _ L 3.5" -75- 8400- fvishak Mid --s"---_- TD at 8644.00 - - Ivishak Lwr Kavik ``--_ _ 9000- Sikumi/Sikumi#1 wp02 -112- - Imp 1 1 1 I 1 1 1 1 I 1 1 I A l l i I I I l l I I I l I I i l I l l i l l l I I I I I I I I I I I I I I I I I I I I I I I I I I I I -3000 -2400 -1800 -1200 -600 0 600 1200 1800 -75 -37 0 37 75 Vertical Section at 0.00?(1500 ft/in) West(-)/East(+)(75 ft/in) Pioneer Natural Resources HALLIBURTON Standard Proposal Report Database: EDM_Alaska Local Co-ordinate Reference: Well Sikumi Company: Well Planning-Pioneer-Oooguruk TVD Reference: Mean Sea Level(System) Project: Sikumi#1 MD Reference: Mean Sea Level(System) Site: Sikumi#1 North Reference: True Well: Sikumi Survey Calculation Method: Minimum Curvature Wellbore: Sikumi#1 Design: Sikumi#1 wp02 Project Sikumi#1 Map System: US State Plane 1927(Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927(NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Site Sikumi#1 Site Position: Northing: 6,027,468.00 ft Latitude: 70°29'9.515 N 'From: Map Easting: 459,258.00ft Longitude: 150°19'58.740 W Position Uncertainty: 0.00 ft Slot Radius: in Grid Convergence: -0.31 ? Well Sikumi Well Position +NI-S 0.00 ft Northing: 6,027,468.00 ft Latitude: 70°29'9.515 N +E/-W 0.00 ft Easting: 459,258.00 ft Longitude: 150°19'58.740 W Position Uncertainty 0.00 ft Wellhead Elevation: 32.00 ft Ground Level: 0.00ft Wellbore Sikumi#1 Magnetics Model Name Sample Date Declination Dip Angle Field Strength (?) (7) (nT) IGRF200510 12/31/2009 21.95 80.80 57,755 Design Sikumi#1 wp02 Audit Notes: Version: Phase: PLAN Tie On Depth: 0.00 Vertical Section: Depth From(TVD) +N/-S +E/-W Direction (ft) (ft) (ft) (?) 0.00 0.00 0.00 0.00 Plan Sections Measured Vertical TVD Dogleg Build Turn Depth Inclination Azimuth Depth System +N/-S +EI-W Rate Rate Rate Tool Face (ft) (?) (?) (ft) ft (ft) (ft) (?/100ft) (?/100ft) (?/100ft) (?) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8,644.00 0.00 0.00 8,644.00 8,644.00 0.00 0.00 0.00 0.00 0.00 0.00 12/13/2011 3:11:04PM Page 2 COMPASS 2003.16 Build 42 10 Pioneer Natural Resources HALLIBURTON Standard Proposal Report Database: EDM Alaska Local Co-ordinate Reference: Well Sikumi Company: Well Planning-Pioneer-Oooguruk TVD Reference: Mean Sea Level(System) Project: Sikumi#1 MD Reference: Mean Sea Level(System) Site: Sikumi#1 North Reference: True Well: Sikumi Survey Calculation Method: Minimum Curvature Wellbore: Sikumi#1 Design: Sikumi#1 wp02 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/S +E/-W Northing Easting DLS Vert Section (ft) (?) (?) (ft) ft (ft) (ft) (ft) (ft) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 100.00 0.00 0.00 100.00 100.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 200.00 0.00 0.00 200.00 200.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 300.00 0.00 0.00 300.00 300.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 400.00 0.00 0.00 400.00 400.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 500.00 0.00 0.00 500.00 500.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 600.00 0.00 0.00 600.00 600.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 700.00 0.00 0.00 700.00 700.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 800.00 0.00 0.00 800.00 800.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 900.00 0.00 0.00 900.00 900.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 1,000.00 0.00 0.00 1,000.00 1,000.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 1,100.00 0.00 0.00 1,100.00 1,100.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 1,200.00 0.00 0.00 1,200.00 1,200.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 1,300.00 0.00 0.00 1,300.00 1,300.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 1,400.00 0.00 0.00 1,400.00 1,400.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 1,500.00 0.00 0.00 1,500.00 1,500.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 1,600.00 0.00 0.00 1,600.00 1,600.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 1,700.00 0.00 0.00 1,700.00 1,700.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 1,800.00 0.00 0.00 1,800.00 1,800.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 1,900.00 0.00 0.00 1,900.00 1,900.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 2,000.00 0.00 0.00 2,000.00 2,000.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 2,033.00 0.00 0.00 2,033.00 2,033.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 West Sak 2,100.00 0.00 0.00 2,100.00 2,100.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 2,200.00 0.00 0.00 2,200.00 2,200.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 2,300.00 0.00 0.00 2,300.00 2,300.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 2,400.00 0.00 0.00 2,400.00 2,400.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 2,500.00 0.00 0.00 2,500.00 2,500.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 2,600.00 0.00 0.00 2,600.00 2,600.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 2,642.00 0.00 0.00 2,642.00 2,642.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Cret Tuff 2,700.00 0.00 0.00 2,700.00 2,700.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 2,800.00 0.00 0.00 2,800.00 2,800.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 2,900.00 0.00 0.00 2,900.00 2,900.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 2,957.00 0.00 0.00 2,957.00 2,957.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Hue 2 shale 3,000.00 0.00 0.00 3,000.00 3,000.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 3,021.00 0.00 0.00 3,021.00 3,021.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 13 3/8" 3,100.00 0.00 0.00 3,100.00 3,100.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 3,200.00 0.00 0.00 3,200.00 3,200.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 3,300.00 0.00 0.00 3,300.00 3,300.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 3,400.00 0.00 0.00 3,400.00 3,400.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 3,500.00 0.00 0.00 3,500.00 3,500.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 3,600.00 0.00 0.00 3,600.00 3,600.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 12/13/2011 3:11:04PM Page 3 COMPASS 2003.16 Build 42 CONF1OENi1)- Pioneer Natural Resources HALLIBURTDN Standard Proposal Report Database: EDM_Alaska Local Co-ordinate Reference: Well Sikumi Company: Well Planning-Pioneer-Oooguruk ND Reference: Mean Sea Level(System) Project: Sikumi#1 MD Reference: Mean Sea Level(System) Site: Sikumi#1 North Reference: True Well: Sikumi Survey Calculation Method: Minimum Curvature Wellbore: Sikumi#1 Design: Sikumi#1 wp02 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (ft) (?) (?) (ft) ft (ft) (ft) (ft) (ft) 3,700.00 3,700.00 0.00 0.00 3,700.00 3,700.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 3,800.00 0.00 0.00 3,800.00 3,800.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 I 3,900.00 0.00 0.00 3,900.00 3,900.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 4,000.00 0.00 0.00 4,000.00 4,000.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 4,088.00 0.00 0.00 4,088.00 4,088.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Brook 2b 4,100.00 0.00 0.00 4,100.00 4,100.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 4,200.00 0.00 0.00 4,200.00 4,200.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 4,300.00 0.00 0.00 4,300.00 4,300.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 4,400.00 0.00 0.00 4,400.00 4,400.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 4,500.00 0.00 0.00 4,500.00 4,500.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 4,600.00 0.00 0.00 4,600.00 4,600.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 4,700.00 0.00 0.00 4,700.00 4,700.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 4,775.00 0.00 0.00 4,775.00 4,775.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Nuna V1 T1 4,800.00 0.00 0.00 4,800.00 4,800.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 4,836.00 0.00 0.00 4,836.00 4,836.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Top Torok 4,900.00 0.00 0.00 4,900.00 4,900.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 5,000.00 0.00 0.00 5,000.00 5,000.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 5,002.00 0.00 0.00 5,002.00 5,002.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Base Torok 5,100.00 0.00 0.00 5,100.00 5,100.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 5,200.00 0.00 0.00 5,200.00 5,200.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 5,268.00 0.00 0.00 5,268.00 5,268.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 1 Torok Sh 1 5,300.00 0.00 0.00 5,300.00 5,300.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 5,400.00 0.00 0.00 5,400.00 5,400.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 5,500.00 0.00 0.00 5,500.00 5,500.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 5,600.00 0.00 0.00 5,600.00 5,600.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 5,670.00 0.00 0.00 5,670.00 5,670.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Top HRZ 5,700.00 0.00 0.00 5,700.00 5,700.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 5,800.00 0.00 0.00 5,800.00 5,800.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 5,802.00 0.00 0.00 5,802.00 5,802.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Base HRZ 5,851.00 0.00 0.00 5,851.00 5,851.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Kalubik Mkr 5,900.00 0.00 0.00 5,900.00 5,900.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 5,927.00 0.00 0.00 5,927.00 5,927.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Kup C-LCU 6,000.00 0.00 0.00 6,000.00 6,000.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 6,040.00 0.00 0.00 6,040.00 6,040.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 BCU 12/13/2011 3:11:04PM Page 4 COMPASS 2003.16 Build 42 Pioneer Natural Resources HALLIBURTON Standard Proposal Report Database: EDM_Alaska Local Co-ordinate Reference: Well Sikumi Company: Well Planning-Pioneer-Oooguruk ND Reference: Mean Sea Level(System) Project: Sikumi#1 MD Reference: Mean Sea Level(System) Site: Sikumi#1 North Reference: True Well: Sikumi Survey Calculation Method: Minimum Curvature Wellbore: Sikumi#1 Design: Sikumi#1 wp02 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (ft) (?) (?) (ft) ft (ft) (ft) (ft) (ft) 6,086.00 6,086.00 0.00 0.00 6,086.00 6,086.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Nuiqsut 6,100.00 0.00 0.00 6,100.00 6,100.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 6,200.00 0.00 0.00 6,200.00 6,200.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 6,203.00 0.00 0.00 6,203.00 6,203.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Nuiq Base 6,214.00 0.00 0.00 6,214.00 6,214.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Nechelik 6,269.00 0.00 0.00 6,269.00 6,269.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Nechelik Base 6,300.00 0.00 0.00 6,300.00 6,300.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 6,350.00 0.00 0.00 6,350.00 6,350.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 9 5/8" 6,400.00 0.00 0.00 6,400.00 6,400.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 6,500.00 0.00 0.00 6,500.00 6,500.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 6,600.00 0.00 0.00 6,600.00 6,600.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 6,700.00 0.00 0.00 6,700.00 6,700.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 6,800.00 0.00 0.00 6,800.00 6,800.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 6,900.00 0.00 0.00 6,900.00 6,900.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 7,000.00 0.00 0.00 7,000.00 7,000.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 7,100.00 0.00 0.00 7,100.00 7,100.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 7,200.00 0.00 0.00 7,200.00 7,200.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 7,300.00 0.00 0.00 7,300.00 7,300.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 7,318.00 0.00 0.00 7,318.00 7,318.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Sag River 7,360.00 0.00 0.00 7,360.00 7,360.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Sag River V1 T1 7,374.00 0.00 0.00 7,374.00 7,374.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 7" 7,398.00 0.00 0.00 7,398.00 7,398.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Shublik Upr 7,400.00 0.00 0.00 7,400.00 7,400.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 7,500.00 0.00 0.00 7,500.00 7,500.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 7,548.00 0.00 0.00 7,548.00 7,548.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Shublik Lwr 7,600.00 0.00 0.00 7,600.00 7,600.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 7,638.00 0.00 0.00 7,638.00 7,638.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Ivishak 7,680.00 0.00 0.00 7,680.00 7,680.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Top Ivishak V1 T1 7,700.00 0.00 0.00 7,700.00 7,700.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 7,719.00 0.00 0.00 7,719.00 7,719.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Ivish Upr 7,800.00 0.00 0.00 7,800.00 7,800.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 7,900.00 0.00 0.00 7,900.00 7,900.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 12/13/2011 3:11:04PM Page 5 COMPASS 2003.16 Build 42 Pioneer Natural Resources HALLI BURTON Standard Proposal Report Database: EDM_Alaska Local Co-ordinate Reference: Well Sikumi Company: Well Planning-Pioneer-Oooguruk TVD Reference: Mean Sea Level(System) Project: Sikumi#1 MD Reference: Mean Sea Level(System) Site: Sikumi#1 North Reference: True Well: Sikumi Survey Calculation Method: Minimum Curvature Wellbore: Sikumi#1 Design: Sikumi#1 wp02 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (ft) (?) (?) (ft) ft (ft) (ft) (ft) (ft) 7,952.00 7,952.00 0.00 0.00 7,952.00 7,952.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Ivishak Mid 8,000.00 0.00 0.00 8,000.00 8,000.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 8,100.00 0.00 0.00 8,100.00 8,100.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 8,191.00 0.00 0.00 8,191.00 8,191.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Ivishak Lwr 8,200.00 0.00 0.00 8,200.00 8,200.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 8,300.00 0.00 0.00 8,300.00 8,300.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 8,318.00 0.00 0.00 8,318.00 8,318.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Kavik 8,360.00 0.00 0.00 8,360.00 8,360.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Base ivishak V1 T1 8,400.00 0.00 0.00 8,400.00 8,400.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 8,474.00 0.00 0.00 8,474.00 8,474.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 3.5" 8,500.00 0.00 0.00 8,500.00 8,500.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 8,600.00 0.00 0.00 8,600.00 8,600.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 8,644.00 0.00 0.00 8,644.00 8,644.00 0.00 0.00 6,027,468.00 459,258.00 0.00 0.00 Total Depth 8644'MD,8644'TVD Targets Target Name -hit/miss target Dip Angle Dip Dir. TVD +N/-S +EI-W Northing Easting -Shape (?) (?) (ft) (ft) (ft) (ft) (ft) Nuna V1 T1 0.00 0.00 4,775.00 0.00 0.00 6,027,468.00 459,258.00 -plan hits target -Point Top Ivishak V1 T1 0.00 0.00 7,680.00 0.00 0.00 6,027,468.00 459,258.00 -plan hits target -Point Base Ivishak V1 T1 0.00 0.00 8,360.00 0.00 0.00 6,027,468.00 459,258.00 -plan hits target -Point SagRiver V1 T1 0.00 0.00 7,360.00 0.00 0.00 6,027,468.00 459,258.00 -plan hits target -Point Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (ft) (ft) Name (in) (in) 3,021.00 3,021.00 13 3/8" 13.375 16.000 6,350.00 6,350.00 9 5/8" 9.625 12.250 7,374.00 7,374.00 7" 7.000 8.500 8,474.00 8,474.00 3.5" 3.500 6.125 12113/2011 3:11:04PM Page 6 COMPASS 2003.16 Build 42 • Pioneer Natural Resources HALLIBURTON Standard Proposal Report Database: EDM Alaska Local Co-ordinate Reference: Well Sikumi Company: Well Planning-Pioneer-Oooguruk TVD Reference: Mean Sea Level(System) Project: Sikumi#1 MD Reference: Mean Sea Level(System) Site: Sikumi#1 North Reference: True Well: Sikumi Survey Calculation Method: Minimum Curvature Wellbore: Sikumi#1 Design: Sikumi#1 wp02 Formations Measured Vertical Vertical Dip Depth Depth Depth SS Dip Direction (ft) (ft) ft Name Lithology (?) ('i) 4,088.00 4,088.00 Brook 2b 6,086.00 6,086.00 Nuiqsut 5,002.00 5,002.00 Base Torok 5,851.00 5,851.00 Kalubik Mkr 5,802.00 5,802.00 Base HRZ 2,033.00 2,033.00 West Sak 8,318.00 8,318.00 Kavik 6,040.00 6,040.00 BCU 5,927.00 5,927.00 LCU 5,670.00 5,670.00 Top HRZ 7,638.00 7,638.00 Ivishak 2,642.00 2,642.00 Cret Tuff 7,398.00 7,398.00 Shublik Upr 8,191.00 8,191.00 Ivishak Lwr 6,203.00 6,203.00 Nuiq Base 2,957.00 2,957.00 Hue 2 shale 6,214.00 6,214.00 Nechelik 7,318.00 7,318.00 Sag River 6,269.00 6,269.00 Nechelik Base 4,836.00 4,836.00 Top Torok 5,268.00 5,268.00 Torok Sh 1 7,548.00 7,548.00 Shublik Lwr 5,927.00 5,927.00 Kup C 7,719.00 7,719.00 Ivish Upr 7,952.00 7,952.00 Ivishak Mid Plan Annotations Measured Vertical Local Coordinates Depth Depth +N/-S +E/-W (ft) (ft) (ft) (ft) Comment 8,644.00 8,644.00 0.00 0.00 Total Depth 8644'MD,8644'TVD 12/13/2011 3:11:04PM Page 7 COMPASS 2003.16 Build 42 Well Planning - Pioneer - Ooogu ru k Sikumi #1 Sikumi #1 Sikumi Sikumi #1 Sikumi #1 wp02 Anticollision Summary Report 13 December, 2011 F 11011111114 % . 00 3 wall no* 8 8 , a o: , i 18 Z y co m o ,,1 �� `% C p c `1 , o $8 Si"0 p o 88 ogoJ 2 V Oflin <<< r11o N$$ LLO Z 1 w W C77 E go7, , my 8 In;-1.75 w .8 IrWI Pia 6 m sA % v110 # io E g 8 8 wIIMUMMWOO t.-, (hi.440MBENOILAO a. cm 0 T. r W N F d C 7 3 0 0 A Z V O 0000000000 00000 00 .`C U.O F H o' N n a voi m or m rn o p U c U y c E� i am U I S 0 C U R_j CONTRFNT O_ F W CC !I!!! a c >, o Q .. c N 3 mw`mw : Z Q 3 CV CI .-S11011113 13 N <II _ u, Q ��ow—1 a�t%�� 0 co 414110JMNIMA rafejf AllA 41,' ,_ ...7 a roff_N `` In E E y / I: ` E J r' K) iliimecialgerAvIOnlp •-.402.1.0:-....-,4,-,--y� ` Y dNON J 6 •1:E!!1 J �r' a 2,42z F. LL, JCf 2 e 'it- imuniviv, !r0jF,A %% %AP 4j/if/lila I ':'C .28 w d N W # �� U O.'. W d W L= tit a Li,E,,, ' wp_�� r. r C O U S N N N «q G-. %A . * 41410 • _ft......._ z co. Ts ��, ' s LI ;Q 30 a 000 ` —an M1116.--- u7o S c +o E-. 0•• NM IMES 0 N NL . c v o G N CI 2 Pioneer Natural Resources Anticollision Report Company: Well Planning-Pioneer-Oooguruk Local Co-ordinate Reference: Well Sikumi Project: Sikumi#1 TVD Reference: Mean Sea Level(System) Reference Site: Sikumi#1 MD Reference: Mean Sea Level(System) Site Error: 0.00ft North Reference: True Reference Well: Sikumi Survey Calculation Method: Minimum Curvature Well Error: 0.00ft Output errors are at 2.00 sigma Reference Wellbore Sikumi#1 Database: EDM Alaska Reference Design: Sikumi#1 wp02 Offset TVD Reference: Offset Datum Reference Sikumi#1 wp02 Filter type: GLOBAL FILTER APPLIED:All wellpaths within 200'+100/1000 of referE Interpolation Method: MD Interval 25.00ft Error Model: ISCWSA Depth Range: Unlimited Scan Method: Tray.Cylinder North Results Limited by: Maximum center-center distance of 1,064.40ft Error Surface: Elliptical Conic Survey Tool Program Date 12/13/2011 From To (ft) (ft) Survey(Wellbore) Tool Name Description 0.00 500.00 Sikumi#1 wp02(Sikumi#1) SR-Gyro-SS Fixed:v2:surface readout gyro single shot 500.00 8,644.00 Sikumi#1 wp02(Sikumi#1) MWD+IFR2+MS+sag Fixed:v2:IIFR dec&3-axis correction+sag Summary Reference Offset C tre to No-Go Allowable Measured Measured entreistanc Deviation Warning Site Name Depth Depth istance (ft) from Plan Offset Well-Wellbore-Design (ft) (ft) (ft) (ft) Oooguruk Drill Site ODSN-23i-ODSN-23i-ODSN-23i IN14 6,179.47 14,750.00 254.04 219.79 84.43 Pass-Major Risk ODST-47-ODST-47 Torok B-ODST-47 Torok B 4,930.07 15,925.00 558.22 289.38 324.95 Pass-Major Risk 12/13/2011 3:13:20PM Page 2 of 3 COMPASS 2003.16 Build 42 Pioneer Natural Resources Anticollision Report Company: Well Planning-Pioneer-Oooguruk Local Co-ordinate Reference: Well Sikumi Project: Sikumi#1 TVD Reference: Mean Sea Level(System) Reference Site: Sikumi#1 MD Reference: Mean Sea Level(System) Site Error: 0.00ft North Reference: True Reference Well: Sikumi Survey Calculation Method: Minimum Curvature Well Error: 0.00ft Output errors are at 2.00 sigma Reference Wellbore Sikumi#1 Database: EDM Alaska Reference Design: Sikumi#1 wp02 Offset ND Reference: Offset Datum Reference Depths are relative to Mean Sea Level(System) Coordinates are relative to:Sikumi Offset Depths are relative to Offset Datum Coordinate System is US State Plane 1927(Exact solution),Alaska Zone 04 Central Meridian is 150°0'0.000 W° Grid Convergence at Surface is:-0.31? Ladder Plot I I I 1200 ' 1 I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I -E- :-.S: . 900 y, p I I I .�. I I O I I I I I I I I I I I I C I I I I I 1 O J J J J J J _ _ C I3 I I I I I I I I I I I I N 1 I I I I I a) I I I I I I a, CO 600 ' O I I I I I I I I I I I C 1 1 I 1 I I O I I I I I I U _ _ __J J J J J _I _ _ O I I I I I 1 O I I I 1 I I 1 I I I I I C I I 1 I I I Q1 300 ' U I I 1 I I I I I I I I I 1 I I I I I I I I 1 I __J J _ _ __J J J J _- I 1 I I I I I I I I I 1 I I I I I 1 I I I I I I I 0 0 1500 3000 4500 6000 7500 9000 Measured Depth (1 500 ft/in) LEGEND 3i OOSN-23i,00SN-231IN14VD 0OST-47,OOST-47 Torok B.0 OS T-47 Torok B wp11 al3C0Sikumi#1wp02 12/13/2011 3:13:20PM Page 3 of 3 COMPASS 2003.16 Build 42 )/( / , h (\\§ M%� ; )iIi ®&( ` ■ a. w, § 1! 1 ! / 41 § �, / \ ( | 44 FT j q ah ) r 1 § �/) 1 § .. it , | | ) iI1 II ¥ . . . ¥ lik ii k Z | z o§§ . 5 i, z§ % 2§E| §§{§ 22 `§ £ ..2 8 hi_ Eil, ¥ ' � §2§§ ▪ § g g 2§}§ zE4,, | ! , L ▪E% f § § "■ / ■| /!■| /b 0 k0 \ PI i ■V 4 4 «! " 11 � 11111 11111 W 1I q& ■u qt_qi I. \ iIj1 ^ o cit ]_ . ■■ IsmI■§ t — (— k-- mi 111111dIMI w E-... 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It 1ATB 0 {•1L�1 1s 11r MSEm ( 0 Z I ......,,,, 0 0' e I' G MI'ID MANXd F NM EOM 011.5 - CMD N M � I Q I Br r v B 1Z 90' I k270 - - .p,..' '411 1'MR.,,.. O ��» �'' . o J 3' \ 3/8'DOUBLER "6.Q 3FORM/61 TO FR 4B' '9 1/4V (TYP.) tea — r SECTION B — B bF - ,-..',1- z rW71E 0 J/ 111 i iff g E r g E E 0 Ft 111 0I 1 0 r FINN cup IK J s 8 171n M 'mar NM Fromm Can 11 0 a 0a r CLEW WI iP. -_7 r, 0 3: 1 N MUD LAE SHOWN OUT CF GENERAL NOTES: 0.11,FOR CURRY1.PERFORM A HIDROSTAIIC TESL ON THE 11110 GAS r ML OUT 0 SEP/GATOR(160).FILL DIE MSG=KEW FULL OF r 3 ° MEG NO 00 FOR 15 WIG. REPAIR ANY LEN6 AND i • RE-TEST. PROHOE OOCMEIRA10N OF 11E RESULTS OF git 2NL SIFRHIS EIOEM mug IEEE IWI NO175/SO 0 15156. PROLE DOCIGENNI5 TINT EYN 619 TWEO • LEE15 1N8 085010/011 1. ' 8 2 $ 3 CO NOT PAW 118 AIME OF THE MSG 0 �°% ti q# 4.061E NE PAM THE OUISDE OF 111E MSG Welt _ - 1,, I...•,.•�, 8tl SLCLEANOUT IC x O a oiHo 0 9 ti a°a La 49 t M ?i14 v24 11o � 0 8' q ELEVATION e < 1.101 �1� ...�. • r CC I-Li W Y 2 11 F s WgC h 11 LI 14001 z— - e Ammh, _,-..,,= se"'Hf.4. v - ZY w � ( Jm a DW illib, i & z < 0 ... . c.) _ . . t, f i ` ,>rY aid:lit0 + a i ► 0- all 40 , 11 i AI I • 0 © j t 0 .131j, .ice Tr N Z ow X W Y W m � d Z CC U O I O a J J EO O O O Ix oW Z Z w O II II iv O N Er) 111 RI O[Il 6WZ/BZ/Ot Up pm....-3GZ\YS Bs.WN luaunJ_3LA5,,Vnrw-.3-3CE'u--3 3ZAB09B1x11e-tfl32\Buu auy,MI\:0 Page 1 of 2 1 Schwartz, Guy L (DOA) From: Bruce, Dustin [Dustin.Bruce@pxd.com] Sent: Tuesday, January 24, 2012 12:56 PM To: Schwartz, Guy L (DOA) Cc: Davies, Stephen F (DOA); Johnson, Vern Subject: RE: Sikumi- 1 (PTD 212-008) We will either capture this in memory while drilling or collect via Wireline when we log the 6-1/8" hole section. Dustin Bruce Exploration Project Engineer Pioneer Natural Resources Alaska 469.236.1280 (Mobile) 907.343.2173 (Office) dustin.bruce@pxd.com From: Schwartz, Guy L(DOA) [mailto:guy.schwartz@alaska.gov] Sent: Tuesday, January 24, 2012 12:25 PM To: Bruce, Dustin Cc: Davies, Stephen F(DOA) Subject: RE: Sikumi - 1 (PTD 212-008) Dustin, I have one more question... I see you are running the BAT sonic tool (Step#26) so I assume you are going to log the 7" casing in memory for the CBL log in case you decide to stimulate the well. Can you confirm this? It may not hurt to have E-line ready with a SCMT(small CBL tool)to verify the 3.5" liner is well cemented too and the frac's will go where intended. You will be rigged up to perforate with Eline already. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Bruce, Dustin [mailto:Dustin.Bruce@pxd.com] Sent: Tuesday, January 24, 2012 12:16 PM To: Schwartz, Guy L (DOA) Subject: RE: Sikumi - 1 (PTD 212-008) Guy, The 4,500 psi test on the annulus is a typo and should be 3,500 psi as in the other casing tests. I apologize for the mistake. In regards to the testing sundry and P&A sundry,thank you for the heads up, and I will pass this on to the appropriate engineer. Please let me know if you have any additional questions or concerns. 1/24/2012 Page 2 of 2 1 Thank you, Dustin Bruce Exploration Project Engineer Pioneer Natural Resources Alaska 469.236.1280 (Mobile) 907.343.2173 (Office) dustin.bruce@pxd.com From: Schwartz, Guy L(DOA) [mailto:guy.schwartz@alaska.gov] Sent: Tuesday, January 24, 2012 12:08 PM To: Bruce, Dustin Cc: Davies, Stephen F(DOA) Subject: Sikumi - 1 (PTD 212-008) Dustin, I am reviewing the PTD for Sikumi 1 and noticed that step#38 has you testing the annulus to 4500 psi. Is this correct? That is 80%of burst for the 9 5/8"casing plus you are only testing to 3500 psi in the casing tests... I also wanted to let you know that a separate testing sundry will be required if you decided to flow or stimulate the well. The P &A operation could also be included in the same sundry with more details as you would have open hole logs. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) Statement of Confidentiality: This message may contain information that is privileged or confidential. If you receive this transmission in error, please notify the sender by reply e-mail and delete the message and any attachments. 1/24/2012 OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format. TRANSMITTAL LETTER CHECKLIST WELL NAME D / PTD# 2- Development Development Service l/' Exploratory Stratigraphic Test Non-Conventional Well FIELD:C,/T7(. H 1.� POOL: Check Box for Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. ,API No. 50- - - API number are between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to produce/inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non-Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev:9/09/2011 M D 3 CD CD Cr No `13 . O 3 <n _, N C° M O 0.O 03 v 0 N a ° 0 N O 7O CD O <D 0 co co i' N N Ni co W co W W W W W W CO IJ CJ N N N N N N N.) 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