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214-040
Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Wednesday, March 01, 2017 1:30 PM To: Luke Keller Cc: Schwartz, Guy L (DOA); Davies, Stephen F (DOA) Subject: PTD 214-040, Kenai Beluga Unit 22-32 Hello Luke, Permit to Drill 214-040, for Kenai Beluga Unit 22-32, issued 22 April 2014, has expired under Regulation 20 AAC 25.005 W. The PTD will be marked expired in the AOGCC database. If you have any questions, please contact me. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave, Anchorage, AK 99501 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. T HE S 1ATE GOVERNOR SI AN PAR E1,L Luke Keller Drilling Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 - - - 333 vvesl Sevenih Avenue Anchoroge, Alaska 99501-3572 Vin:907.27 433 Re: Kenai Field, Beluga/Upper Tyonek Gas Pool, KBU 22-32 Hilcorp Alaska, LLC Permit No: 214-040 Surface Location: 1839' FEL, 881' FSL, SEC. 31, TSN, RI W, SM, AK Bottomhole Location: 2251' FNL, 2101' FWL, SEC. 32, TSN, R11 W, SM, AK Dear Mr. Keller: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval 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 AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC 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 AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Cathy P Foerster Chair DATED this 2?!day of April, 2014. STATE OF ALASKA AL CA OIL AND GAS CONSERVATION COMN, ON PERMIT TO DRILL 20 AAC 25.005 1 a. Type of Work: 1 b. Proposed Well Class: Development - Oil ❑ Service - Winj ❑ Single Zone ❑ 1 c. Specify if well is proposed for: Drill Q , Lateral ❑ Stratigraphic Test ❑ Development - Gas ❑✓ • Service - Supply ❑ Multiple Zone E Coalbed Gas ❑ Gas Hydrates ❑ Redril ❑ Reentry ❑ Exploratory ❑ Service - WAG ❑ Service - Disp ❑ Geothermal ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket ❑ Single Well ❑ 11. Well Name and Number: Hilcorp Alaska, LLC Bond No. 022035244 • KBU 22-32 - 3. Address: 6. Proposed Depth: 12. Field/Pool(s): 3800 Centerpoint Drive, Anchorage AK 99503 MD: 10,911' TVD: 9,877' . Kenai, Up Tyonek Beluga Gas 4a. Location of Well (Governmental Section): 7. Property Designation (Lease Number): Surface: 1839' FEL, 881 FSL, Sec 31, T5N, R11 W, SM, AK AA-093808 (Fee Lease) (Segregated A028055) Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 2001' FSL, 214' FWL, Sec 32, T5N, R11 W, SM, AK NA - Kenai Unit 5/22/2014 9. Acres in Propertv: 14. Distance to Nearest Propertv: Total Depth: 2251' FNL, 2101' FWL, Sec 32, T5N, R11 W, SM, AK • AA-093808 1,400.00 acres 8,128.33' FWL Unit Boundary 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above MSL: 77.6 feet • 15. Distance to Nearest Well Open Surface: x-270790 y- 2368234 • Zone-4 GL Elevation above MSL: 59 feet to Same Pool: 4,045' 16. Deviated wells: Kickoff depth: 300 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 27 degrees Downhole: 3996 Surface: —4623'3cz7 ,,: 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 16" 109 X-56 Weld 80' surf surf 80' 80, Driven 13-1/2" 10-3/4" 45.5 L-80 Buttress 1,600' surf surf 1,600' 1,558.42' 928.6 ft3 9-7/8" 7-5/8" 29 L-80 BTC 6,100' surf surf 6,100' 5,571.03' 851 ft3 6-3/4" 5" 18 L-80 DWC/C 10,994' suf surf 10,911' 9,877' 1160 ft3 HT 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Property Plat ❑✓ BOP Sketch ❑✓ Drilling Program ❑✓ Time v. Depth Plot ❑✓ Shallow Hazard Analysis❑ Diverter Sketch Q Seabed Report ❑ Drilling Fluid Program Q 20 AAC 25.050 requirements❑✓ 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is true and correct. Janise Barrett Contact jbarrett(a)_hilcorp. com Email Printed Name Luke Keller Title Drilling Engineer Signature Phone 907-777-8395 Date 3/14/2014 Commission Use Only Permit to Drill // .�l API Number: " C { , -� (. Permit Approval r1 I See cover letter for other Number: 50- %� yam,:,; -, Date: p`a requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbe methane, gas hydrates, or gas contained in shales: [] Other: 3500 pi /SC P e�7 Samples req'd: Yes ❑ No[0i Mud log req'd: Yes[] No HZS measures: Yes ❑ No ❑, Directional svy req'd: Yes [Ef No ❑, Spacing exception req'd: Yes N�o ❑ Inclination -only svy req'd: Yes ❑ No Q �1 � Do (`C/!``'t✓e� � W,�/�' ^❑ i�+++,� lC��i vL� o��`�l , O.,"s . APPROVED BY Approved by. p „"�„✓ COMMISSIONER THE COMMISSION Date: Nauomii rorm ana Form 10-401 (revised 10/201 Th" t a o t s from the date of approval (20 AAC 25.005(g)) Attachments in D I' ate Luke Keller Drilling Engineer Hilcorp Energy Company 03/14/14 Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7tn Avenue Anchorage, Alaska 99501 Re: KBU 22-32 Dear Commissioner, Hilcorp Alaska, LLC P.O. Box 244027 Anchorage, AK 99524-4027 Tel 907 777 8395 Email Ikeller@hilcorp.com Enclosed for review and approval is the application for the Permit to Drill the KBU 22-32 Development Gas well KBU 22-32 is a 10,911' MD / 9,877' TVD Beluga/Upper Tyonek development well off the 34-31 pad in the Kenai Gas Field. The KBU 22-32 will target the Mid -Lower Beluga and Upper Tyonek reserves on the eastern flank of the field. The base plan is a build and hold well bore, with a shallow kick off at 300' and building up to a 27 deg tangent to TD. Drilling operations are expected to commence approximately May 22nd, 2014. The Saxon_ .,_Rig_# 147 will be used to drill and complete the wellbore. The well will be perforated after the rig has departed. Pursuant to 20 AAC 25.055(a)(3), a spacing exception is NOT required: 1. KBU 22-32 does not fall within 500 ft of a property line where ownership or landownership changes. Pursuant to 20 AAC 25.005 (c) & (d), the following is included: 1. Plat identifying the property on which the well will be drilled. 2. Diagram & description of blowout prevention equipment. 3. Information on drilling hazards. a. MASP calculations are attached per 20 AAC 25.005 (c)(4)(A) b. Potential target reservoirs and their predicted pore pressures are indicated in attached Drilling Program 4. Formation integrity test procedure. 5. Planned casing & cement program (Drilling Program) 6. Drilling fluid program (Drilling Program) 7. Tabulation of predicted depths with equivalent formation pressures. 8. Requirements of 20 AAC 25.025 have been met. a. Blanket state wide bond issued: 022035244 9. Copy of Drilling Program is attached. 10. General description of waste disposal. Operator does not wish to request authorization under 20 AAC 25.080 for an annular disposal operation in the well. a. Drilling waste (cuttings and water based drilling fluids) will be hauled to the Kenai Gas Field G&I facility. At the G&I facility, cuttings will be tested, and either injected or slotted for beneficial reuse. 11. Requirements of 20 AAC 25.050(b) have been met. Hilcorp Alaska, LLC Page 1 of 2 a. Plat showing path of proposed wellbore including all adjacent wellbores within 200' is attached. b. All wellbores within 200' of proposed wellbore are owned by Hilcorp. If you have any questions, please don't hesitate to contact myself at 777-8395 or Paul Mazzolini at 777-8369. Sincerely, r Luke Keller Drilling Engineer Hilcorp Alaska, LLC Page 2 of 2 Hilcorp Alaska, LLC Kenai Beluga Unit KBU 22-32 Drilling & Completion Program Kenai Gas Field Revision 1 Feb 28t", 2014 Contents KBU 22-32 Drilling Procedure 1.0 Well Summary..................................................................................................................................................................2 2.0 Management of Change Information..............................................................................................................................3 3.0 Tubular Program: ............................................................................................................................................................ 4 4.0 Drill Pipe Information: .................................................................................................................................................... 4 5.0 Internal Reporting Requirements...................................................................................................................................5 6.0 Planned Wellbore Schematic...........................................................................................................................................6 7.0 Drilling / Completion Summary......................................................................................................................................7 8.0 Mandatory Regulatory Compliance / Notifications.......................................................................................................8 9.0 R/U and Preparatory Work...........................................................................................................................................10 10.0 N/U 21-1/4" 2M Diverter................................................................................................................................................11 11.0 Drill 13-1/2" Hole Section..............................................................................................................................................14 12.0 Run 10-3/4" Surface Casing...........................................................................................................................................18 13.0 Cement 10-3/4" Surface Casing.....................................................................................................................................20 14.0 BOP N/U and Test..........................................................................................................................................................23 15.0 Drill 9-7/8" Hole Section................................................................................................................................................24 16.0 Run 7-5/8" Production Casing.......................................................................................................................................30 17.0 Cement 7-5/8" Cement Procedure................................................................................................................................32 18.0 Drill 6-3/4" Hole Section................................................................................................................................................35 19.0 Run 5" Production Long String....................................................................................................................................41 20.0 Cement 5" Production Long String..............................................................................................................................44 21.0 RDMO.............................................................................................................................................................................46 22.0 Perf and Frac..................................................................................................................................................................46 23.0 BOP Schematic...............................................................................................................................................................47 24.0 Wellhead Schematic.......................................................................................................................................................48 25.0 Days Vs Depth.................................................................................................................................................................49 26.0 Expected Formation Tops and Pressures.....................................................................................................................50 27.0 Anticipated Drilling Hazards.........................................................................................................................................50 28.0 Saxon Rig 147 Layout....................................................................................................................................................53 29.0 FIT Procedure.................................................................................................................................................................54 30.0 Choke Manifold Schematic............................................................................................................................................55 31.0 Casing Design Information............................................................................................................................................56 32.0 9-7/8" Hole Section MASP.............................................................................................................................................57 33.0 6-3/4" Hole Section MASP............................................................................................................................................. 58 34.0 Spider Plot (NAD 27) (Governmental Sections)...........................................................................................................59 35.0 Surface Plat (As Built) (NAD 27)..................................................................................................................................60 36.0 Offset MW vs TVD Chart..............................................................................................................................................61 37.0 Drill Pipe Information....................................................................................................................................................62 KBU 22-32 Drilling & Completion Procedure HilcOIP Energy Company 1.0 Well Summary Well Kenai Beluga Unit (KBU) 22-32 ' Pad & Old Well Designation KBU 22-32 is a grass roots well on the existing 34-31 pad Planned Completion Tye 5" production tubing Target Reservoir(s) Tyonek / Beluga ' Planned Well TD, MD / TVD 10,911' MD / 9,877' TVD ' PBTD, MD / TVD 10,800' MD / 9,777' TVD Surface Location (Governmental) 1839' FEL, 881 FSL, Sec 31, T5N, RI W, SM, AK Surface Location (NAD 27) N= 2368234, E= 270790 ' Surface Location (NAD 83) Top of Productive Horizon (Governmental) 2001' FSL, 214' FWL, Sec 32, T5N, R11 W, SM, AK TPH Location (NAD 27) X=272868.67, Y=2369316.83 TPH Location (NAD 83) BHL (Governmental) 2251' FNL, 2101' FWL, Sec 32, T5N, R11W, SM, AK BHL (NAD 27) X=274773.2, Y=2370309 BHL (NAD 83) Maximum Anticipated Pressure (Surface) 1623 psig (Drlg) / 3007 psig (prod) Maximum Anticipated Pressure (Reservoir) 3996 psig AFE Number 1410948 AFE Drilling Days 27 AFE Completion Days 3 AFE Drilling Amount $5.760 MM AFE Completion Amount $0.842 MM Work String 4-1/2" 16.6# S-135 CDS-40 (Rental Saxon String) KB Elevation above MSL 77.6 ft GL Elevation above MSL 59 ft BOP Equipment 11" 5M T3-Energy Annular BOP 11" 5M T3-Energy Double Ram 11" 5M T3-Energy Single Ram Page 2 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure 2.0 Management of Change Information 11 Hilcorp Alaska, LLC Hilc rp Changes to Approved Permit to Drill Date: 2-28-2014 Subject: Changes to Approved Permit to Drill for KBU 22-32 File #: KBU 22-32 Drilling and Completion Program Any modifications to KBU 22-32Drilling & Completion Program will be documented and approved below. Changes to an approved APD will be communicated to the BLM and AOGCC. Procedure Change Approval: Drilling Manager Date Prepared: Drilling Engineer Page 3 Revision 1 Date Feb, 2014 KBU 22-32 Drilling & Completion Procedure 3.0 Tubular Program: Hole Section OD (in) 1D (in) Drift (in) Conn OD in Wt + Conn Burst (psi) Collapse i Tension -Ibs) Cond 16" 15" - - 109 X-56 Weld 13-1/2" 10-3/4" 9.95" 9.875" 11.75" 45.5 L-80 BTC 5210 2480 1040 9-7/8" 7-5/8" 6.875" 6.75" 8.5" 29.7 L-80 BTC 6890 ' 4790 683 6-3/4" 5" 4.276" 4.151" 5.563" 18 L-80 pwaC HT 9910 ' 10500 422 4.0 Drill Pipe Information: Hole Section OD (in) ID (in) TJ ID (in) TJ OD (in) Wt #/ft) Grade Conn Burst (psi) Collapse (psi) Tension (k-lbs) All 4.5" 3.826 2.6875" 5.25" 16.6 S-135 CDS40 17,693 16,769 468k All casing will be new, PSL 1 (100% mill inspected, 10% inspection upon delivery to TSA in Fairbanks). Page 4 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure HilmTEnergy Company 5.0 Internal Reporting Requirements 5.1 Fill out daily drilling report and cost report on Wellez. • Report covers operations from 6am to 6am • Click on one of the tabs at the top to save data entered. If you click on one of the tabs to the left of the data entry area — this will not save the data entered, and will navigate to another data entry tab. • Ensure time entry adds up to 24 hours total. • Try to capture any out of scope work as NPT. This helps later on when we pull end of well reports. • Ensure to enter daily mud info, BHA info, directional surveys, depths. 5.2 Afternoon Updates • Submit a short operations update each work day to jbarrett@hilcoM.com and Ikeller@hilcotp.com by 3pm. 5.3 Morning Updates: • Update Intranet homepage "Enter Drilling Comment" each morning before 7 am (Before 5 am on weekends and Holidays). 5.4 EHS Incident Reporting • Notify EHS field coordinator. 1. This could be one of (3) individuals as they rotate around. Know who your EHS field coordinator is at all times, don't wait until an emergency to have to call around and figure it out!!!! a. John Coston: 0: (907) 777-6726 C: (907) 227-3189 b. Mark Tornai: 0: (907) 283-1372 C: (907) 748-3299 c. Thad Eby: 0: (907) 777-8317 C: (907) 602-5178 2. Spills: Kate Kaufman: 0:907-777-8329 C:907-244-8292 • Notify Drlg Manager 1. Paul Mazzolini: 0: 907-777-8369 C: 907-317-1275 • Submit Hilcorp Incident report to contacts above within 24 hrs 5.5 Casing Tally 1. Send final "As -Run" Casing tally to Ikeller@hilcorp.com hilcorp.com and jbarrett@hilcorp.com 5.6 Casing and Cmt report • Send casing and cement report for each string of casing to lkeller@hilcorp.com and jbarrett@hilcorp.com Page 5 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 6.0 Planned Wellbore Schematic is I- TOC = kf's3' 0 `` t PBTD = 10,800' NED 19,777' T17D TD = 10,911' MID ? 9,877' TCD CASING DETAIL Size Type Grade Conn. ID Top Btm Mud .L^tz Weight 16, Conductor— Driven 109 X-56 Weld 16' Surf B0' to Set Depth f0-3f4` surf.C3g 45.5 L-SO Buttress 9.95' Surf 1.603'. B.Sppg 7-5f8' lnterarediate 29 L-SD BTC 6.675' Surf 6,1w . 9 ppg TUBING 5' Production 18 L-so D �fC 4.276" Surf f0,9ff' fflppg Drilling Info Hole Section Casing MN ��5sr r rlg 13-1f2` 103/4' 8.5-9.3 ppg 4-1f2' 9-7f6' 7-Sf8" 9-9.5ppg 4-S12' 6 3f4' S` 10-10.5 4-Zf2' JEWELRY DETAIL No. Depth ID OD Item 2 28, 4.276" V. Tubing Hanger 2 5,600' 4.276" 1 6.05" 20 ft Swell Packer(WaterSwell) PERFORATIONS Zone Top (MD) 8tm (RID) Top (TVD) Btm (iVD) SPF Length Date Middle Beluga 5571 LDNver Beluga 6305 upper Tyqrtkg 7412 9 Page 6 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 7.0 Drilling / Completion Summary KBU 22-32 is a 10,911' MD / 9,877' TVD Beluga/Upper Tyonek development well off the 34-31 pad in the Kenai Gas Field. The KBU 22-32 will target the Mid -Lower Beluga and Upper Tyonek reserves on the eastern flank of the field. The base plan is a build and hold well bore, with a shallow kick off at 300' and building up to a 27 deg tangent to TD. Drilling operations are expected to commence approximately May 22°d, 2014. J The Saxon Rig # 147 will be used to drill and complete the wellbore. The well will be perforated after the rig has departed. The closest industrial water well to the drill wells on pad 41-18 in the Kenai Gas Field is the Kenai B-4. The hole depth is 100' with the water level at 96', and the chlorides are around 1200 ppm. Arsenic levels came in at 11.8 parts per billion, which is over the EPA limit for the naturally occurring substance. Total gas levels from offset mud logs begin to register at depths as shallow as 175'. The closest domestic water well is the Kenai B-4 KSO1, located on the eastern flank of the field, which draws its water from a depth of 268' and has chlorides around 2000 ppm. Casing for the drill wells will be placed well below the fresh water table at 1500' to isolate any useable ground water. Surface casing will be run to 1600' MD and cemented to surface to ensure protection of these resources. Cement returns to surface will confirm TOC at surface. If curt returns to surface are not observed, a Temp log will be run between 6 — 18 hrs after CIP to determine TOC. Necessary remedial action will then be discussed with AOGCC authorities. All waste & mud generated during drilling and completion operations will be hauled to the Kenai Gas Field G&I facility for disposal / beneficial reuse depending on test results. This facility is on the same pad as the drill well. General sequence of operations: 1. MOB Saxon Rig # 147 to well site. 2. N/U 21-1/4" x 2M diverter. 3. Drill 13-1/2" hole to 1600' MD. Run and cmt 10-3/4" surface casing. 4. N/D conductor riser, N/U & test I I" x 5M T3-Energy BOP. 5. Drill 9-7/8" hole section to casing point. Run and curt 7-5/8" intermediate casing. 6. Drill (and LWD log) 6-3/4" production hole section to well TD. Run RFT pressures. Run and cmt 5" production casing. 7. N/D BOP, N/U tree, RDMO. Page 7 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 8.0 Mandatory Regulatory Compliance / Notifications Regulatory Compliance Ensure that our drilling and completion operations comply with the below AOGCC regulations. If additional clarity or guidance is required on how to comply with a specific regulation, do not hesitate to contact the Anchorage Drilling Team. • BOPs shall be tested at (2) week intervals during the drilling and completion of KBU 22-32. Ensure to provide AOGCC 24 hrs notice prior to testing BOPS. • The initial test of BOP equipment will be to 250/3500 psi & subsequent tests of the BOP equipment will be to 250/3500 psi for 5/5 min (annular to 50% rated WP, 2500 psi on the high test for initial and subsequent tests). Confirm that these test pressures match those specified on the APD. • If the BOP is used to shut in on the well in a well control situation, we must test all BOP components utilized for well control prior to the next trip into the wellbore. This pressure test will be charted same as the 14 day BOP test. • All AOGCC regulations within 20 AAC 25.033 "Primary well control for drilling: drilling fluid program and drilling fluid system" • 'All AOGCC regulations within 20 AAC 25.035 "Secondary well control for primary drilling and completion: blowout prevention equipment and diverter requirements" • Ensure AOGCC approved drilling permit is posted on the rig floor and in Co Man office. AOGCC Regulation Variance Requests: • No AOGCC variance requests at this time. Page 8 Revision 1 Feb, 2014 Hilmix Energy Company KBU 22-32 Drilling & Completion Procedure Summary of BOP Equipment and Test Requirements Hole Section Equipment Test Pressure (psi) 13-1/2" 0 21-1/4" x 2M Hydril MSP diver -ter Function Test Only • 11" x 5M T3-Energy (Model 7082) Annular BOP • 11" x 5M T3-Energy Double Ram Initial Test: 250/3500 o Blind ram in btm cavity (Annular 2500 psi) • Mud cross 9-7/8" & 6-3/4" 0 11" x 5M T-3 Energy Single Ram • 3-1/8" 5M Choke Line Subsequent Tests: • 2-1/16" x 5M Kill line 250/3500 • 3-1/8" x 2-1/16" 5M Choke manifold (Annular 2500 psi) • Standpipe, floor valves, etc • Primary closing unit: Control Technologies accumulator unit, 5 station, 120 gallon (12 x 11 gal bottles). • Primary closing hydraulic pressure is provided by an electrically driven triplex pump. Emergency pressure is provided by bottled nitrogen. Required AOGCC Notifications: • Well control event (BOPS utilized to shut in the well to control influx of formation fluids). • 24 hours notice prior to spud. F---- --(-es -f • 24 hours notice prior to testing BOPS. • 24 hours notice prior to casing running & cement operations. • Any other notifications required in APD. Regulatory Contact Information: AOGCC Jim Regg / AOGCC Inspector / (0): 907-793-1236 / Email: jim.reggAalaska. ov Guy Schwartz / Petroleum Engineer / (0): 907-793-1226 / (C): 907-301-4533 / Email: g_uy.schwartzgalaska.gov Victoria Ferguson / Petroleum Engineer / (0): 907-793-1247 / Email: Victoria.fergusongalaska.gov Primary Contact for Opportunity to witness: AOGCC.Inspectorsgalaska.gov Test/Inspection notification standardization format: http://doa.alaska.gov/ogc/forms/TestWitnessNotif.html Notification / Emergency Phone: 907-793-1236 (During normal Business Hours) Notification / Emergency Phone: 907-659-2714 (Outside normal Business Hours) Page 9 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 9.0 R/U and Preparatory Work 9.1 Set 16" conductor at 160' below ground level. A deeper conductor is required at Kenai Gas Field due to shallow, unconsolidated gravel beds. 9.2 Dig out and set impermeable cellar. 9.3 Install Seaboard slip-on 16-3/4" 3M "A" section & 20" adapter bushing. Ensure to orient wellhead so that tree will line up with flowline later. 9.4 Level pad and ensure enough room for layout of rig footprint and R/U. 9.5 Layout Herculite on pad to extend beyond footprint of rig. 9.6 R/U Saxon Rig # 147, spot service company shacks, spot & R/U company man & toolpusher offices. 9.7 After rig equipment has been spotted, R/U handi-berm containment system around footprint of rig. 9.8 Mix mud for 13-1 /2" hole section. 9.9 Set test plug in wellhead prior to N/U conductor riser to ensure nothing is accidentally dropped into the wellbore. 9.10 Mud loggers not required in surface hole section. 9.11 Install 5-1/2" liners in mud pumps. • TSM 1000 mud pumps are rated at 3633 psi (85%) / 333 gpm (100%) with 5-1/2" liners. Page 10 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure 10.0 N/U 21-1 /4" 2M Diverter 10.1 N/U 21-1/4" Hydril MSP 2M diverter System. • N/U 16-3/4" 3M x 21-1/4" 2M DSA (Hilcorp) on 16-3/4" 3M wellhead. • N/U 21-1 /4" diverter "T". • Knife gate, 16" diverter line. • Ensure diverter R/U complies with AOGCC reg 20.AAC.25.035(C). 10.2 Function test diverter. Ensure that the knife gate and annular are operated on the same circuit so that knife gate opens prior to annular closure. Ensure to notify AOGCC inspector to witness function test of diverter. , 10.3 Ensure to set up a clearly marked "warning zone" is established on each side and ahead of the vent line tip. "Warning Zone" must include: • A prohibition on vehicle parking • A prohibition on ignition sources or running equipment • A prohibition on staged equipment or materials • Restriction of traffic to essential foot or vehicle traffic only. 10.4 Set 15.375" ID wearbushing in wellhead. Page 11 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure HilmTEnergy Company 10.5 Rig and diverter line Orientation on 34-31 pad: Ro KENAI GAS FIELD LEG ND PAD 34-31 SITE PLAN `m b S��A'wI#Gt✓t1 �� 40 M�NJ1tM ♦ YTTK KM y, roiw.y- f KL,b+ ,E KTY- J ani1KMlRXY -�- SYN 'l:W1ifN',� "K s n m T.«...=.x. :.>, n.Mr • ww rwE� � Vsµ h 9 - _ 1� e e' '� • Trw<vpau[e ——ew,osw / � � i;$.j T I NJ. xpwG Mx{t7 , MG t SECTION 31 TSN. Rt 7W, S.M., AK ,t G:rtgw ViCEWnY.K,o9Etr€Sw+O (ED RSEM.RdvDrwK!'. (RUST) v+.nezewt 1, M2 W16»,Mw � I - � V", t .. N atrf Mz lb TRACT 5 �t L KALBEA SUBD. t KGF N, rr N:23133.6502 , , rr ELEV. 59.1V �o � �'� .�. � _���. � �„ • III"' -" i Kt! -OX r Page 12 Revision 1 Feb, 2014 10.6 Diverter Schematic: Annular Preventer Diverter Tee, 21-%." x ; 2M vr! 16" ANSI 150 16-%" 3M x 21-%" 2M Seaboard 16-3/." 3M Casing head Assy Page 13 KBU 22-32 Diverter Schematic Revision 1 KBU 22-32 Drilling & Completion Procedure Feb, 2014 0 Hilcolp Energy Company 11.0 Drill 13-1/2" Hole Section KBU 22-32 Drilling & Completion Procedure 11.1 P/U below 13-1/2" directional drilling assy: • Ensure BHA components have been inspected previously. • Drift and caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. • Ensure TF offset is measured accurately and entered correctly into the MWD software. • Bit TFA should be -0.7 in2. We need to pump at 500 to 510 gpm to clean the hole effectively. • Workstring will be 4.5" 16.6# S-135 CDS40. HALLIBURTON BHA Tall Customer : Hik:orp Y Well Name ; KBU 32-08 Drilistring Job Number AK•XX- Rig Name Saxon Rig #147 IAOC Rig BHA# 0100 Country : USA Run# 100 State I Province Alaska COMPONENT alone 1 HDBSOHCIGRC 13450 3000 13.5W 46012 P6-S8"REG too 1.00 2 8` Spe+ryDrtl lobe 45. 5.3 stg 8.000 SD00 12t.08 B 6-Sr8' REG 31.63 32.83 j Statxltre 13 375 3 8' Drecbonai Cotar 7.850 3.500 147.40 8 6-58' REG 8.88 41.71 4 8` #lima Stabilizer (" )12 1 r8' gauge 8 000 2 830 12 126 14987 B &SW REG 380 4551 5 8.1h1HOC (Pulsor) 8.150 4.000 14520 86.58'REG 940 54.91 6 e' Non 6taq Flax Collar T600 2 875 132.48 B 8&8' REG 30.00 64.91 7 8' Non I Ug Flex Collar 7 610 2 875 13534 8 6.5,1i' REG 30.00 11491 8 X-0 6.518- Reg P X 4-1f2" IF B 7.375 2.875 123.46 B 4-tr2' IF 2.25 117,16 9 6 75' Non btaq Flax Cottar 6.730 2.975 99.11 8 44W IF 3000 147,16 10 6.75' Non Mao Flex Char 6.700 3.000 96.06 B 44W IF 30.W 117.16 11 X-0 4.11Y IF P X COS-40 8 6 520 2 750 93.54 6 4-5" CDS 40 2.75 179.91 12 6 Jams 4.177' MWOP COS-40 4 600 2 750 185.00 36491 13 X-0 CDS-40 P X 4 1 Z IF S 6.520 2.750 .1r2' IF 275 367.68 14 6 1R'Woalholford DAM Jar 0 259 2.250 *1,00 AW IF 3200 3 f(I 5 X•o 4.112' IF P X CDS-40 B 6620 2.750 'CDS40 275 40241 16 13 Jocks 4.14' H'r'!DP COS-40 4,5002.750 1 400.00 802.4 t 802.41 Bit Number Nozzles : 1xi43xl6 an Site (in) : 13.500 TFA (In2) : 0.7394 Manufacturer HMS gull Grade in Mode : OHCIORC Dull Oft" Out Serial Number MOTOR DATA Motor Number Band (deg) 1.15 00 it") : 8.000 Nou3es (32nd) oA Manufacture : Sparrlr Driftnp Avg DIM Press Mode SperryDQ Cumul Cis Hrs Serial Number Page 14 Revision 1 Feb, 2014 V KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 11.2 Hydraulics Summary: Depth- Hole Size Pump Rate Standpipe Est Openhole MW ECD TFA MD (ft) (in) (gpm) Pressure (psi) AV (fpm) (ppg) (ppg) (in2) BHA MM+MWD+25 0 -1600 13-1/2" 500 1848 76 9.0 9.2 0.70 HWDP 11.3 Primary bit will be the Security 13-1/2" QHCIGRC Milled Tooth Bit. These are available from Halliburton. PRODUO' SKOFWATIoN'S IADC Code 117 W Total Tooth Count 664 (cage Row Tooth Comm 36 Journal Angle 33` Offset (1? 16") 6 Jet Nozzle Typos standard $1241 Extended 311.106 Center let (IrCenter kttcd) 301813 T.J. Connection 6-SV (API Reg.) Recommended Make -Up Torque 28OW320W F11lK Bit Wright (Boxed) 2601.bs. (I IS Kg.) Bit Breaker (Mat.trUgacyo) 1837771"498 PRODU('T FF,ATURF.B • New patented Diamoruff m Clawk, tooth hit design_ • Proprietary Diamond TWI12O001*t full tooth hardfacing on cutting, structure and gage. • Tungsten carbide 'surr inserts in gage teeth for added gage protection. • Premium bearing and seal configuration suitable for both rotary and motor applications. • Innovative mechanical pressure compensating system provides reliable presmw equalization and relief for maximum bearing and seal life. • Raised tungsten carbide inserts and proprietary hardfacing provides maximum arm protection in abrasive and directional applications while minimizing drill string torque • Quadpackv, Plus Series. incorporates its successful "longevity" features and patented engineered hydraulics system for optimal Cleaning efficiency. • Center jet feature to prevent bit bailing problems Material #340030 •Cakutttimn tustd on mcommendatiom (torn API and toul-*YA manufarWrcts.. C, 2014 Halliburion. All rights reserved. Sales orHatliburton products and services will be in accord solely with the terms and conditions contained in the contract between tlallibutton and the customer that is applicable to the sale. Page 15 Revision 1 Feb, 2014 J KBU 22-32 Drilling & Completion Procedure 11.4 4-1/2" Workstring & HWDP will come from Saxon. Jars will come from Weatherford. 11.5 No LWD tools will be run on the 13-1/2" hole section. 11.6 Begin drilling out from 16" conductor at reduced flow rates to avoid broaching the conductor. 11.7 Drill 13-1/2" hole section to 1600' MD / 1533' TVD. ✓ • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Pump at 510 gpm. This gives us an annular velocity of 77 fpm, which is borderline for effective hole cleaning. Ensure shaker screens are set up to handle this flowrate. • Utilize Inlet experience to drill through coal seams efficiently. Coal seam log will be provided by Hilcorp Geo team. Work through coal seams once drilled. • Keep swab and surge pressures low when tripping. • Make wiper trips every 500' or every couple days unless hole conditions dictate otherwise. • Ensure shale shakers are functioning properly. Check for holes in screens on connections. • Adjust MW as necessary to maintain hole stability. Keep API fluid loss < 10. • TD the hole section in a good shale btwn 1550' & 1650' MD. • Take MWD surveys every stand drilled (60' intervals) Page 16 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp EncW Company 11.8 13-1/2" hole mud program summary: Weighting material to be used for the hole section will be barite. Additional barite will be on location to weight up the active system (1) ppg above highest anticipated MW. We will start with a simple gel + FW spud mud at 8.8 ppg. MD Totco PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller's console, Co Man office, Toolpusher office, and mud loggers office. System Type: 8.8 — 9.3 ppg Pre -Hydrated Aquagel/freshwater spud mud Properties: Depths Density Viscosity Plastic Viscosity Yield Point AN FL LGS 80-1600' 8.8 — 9.3 85-150 20 - 40 25 - 45 <10 <15% System Formulation: M-1 Gel + FW spud mud Product Concentration Fresh Water 0.905 bbl M-I Gel Export 20 ppb M-I Wate As needed Soda Ash 0.5 ppb Caustic Soda 0.1 ppb Busan 1060 0.04ppb 11.9 At TD; pump sweeps, CBU, and pull a wiper trip back to the 16" conductor shoe. 11.10 TOH with the drilling assy, handle BHA as appropriate. Page 17 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 12.0 Run 10-3/4" Surface Casing 12.1 R/U and pull 15.375" wearbushing. ✓ 12.2 R/U Weatherford 10-3/4" casing running equipment. • Ensure 10-3/4" BTC x CDS 40 XO on rig floor and M/U to FOSV. • R/U fill -up line to fill casing while running. • Ensure all casing has been drifted on the location prior to running. • Be sure to count the total # of joints on the location before running. • Keep hole covered while R/U casing tools. • Record OD's, ID's, lengths, S/N's of all components w/ vendor & model info. 12.3 P/U shoe joint, visually verify no debris inside joint. 12.4 Continue M/U & thread locking shoe track assy consisting of: • (1) Shoe joint w/ float shoe bucked on (thread locked). • (1) Joint with coupling thread locked. • (1) Joint with float collar bucked on pin end & thread locked. • Install (2) centralizers on shoe joint over a stop collar. 10' from each end. • Install (1) centralizer, mid tube on thread locked joint and on FC joint. • Ensure proper operation of float equipment. 12.5 Continue running 10-3/4" surface casing • Fill casing while running using fill up line on rig floor. • Use "API Modified" thread compound. Dope pin end only w/ paint brush. • M/U connections to the base of the triangle stamped on the pin end. Note M/U torque values required to achieve this position. Estimated torque to reach base of triangle: 10,750 ft-lbs. • After making up several connections, use the torque required to M/U to base of triangle as the M/U torque and continue running string. • Install (1) centralizer every other joint to 300'. Do not run any centralizers above 300' in the event a top out job is needed. • Utilize a collar clamp until weight is sufficient to keep slips set properly. 10-3/4" BTC Estimated M/U Torque Casing OD Est Torque to Reach Triangle Base 10-3/4" 10,750 ft-lbs Page 18 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilic Energy Company Tenaris Casing and Tubing Performance Data Choose pipe size, wall thickness and steel grade to view API connection options and performance data. Wail GradeSize Connection �� Unit Pipe Body Data 'GEOMETRY• Nominal OD 10.750 in Wall Thickness 0.400 in API Drift Diameter 9.794 in Nominal Weight 45.50 lbsift Nominal ID 9.950 in Alternate Drift Diameter 9.875 in Plain End Weight 44.26 Ibstft Nominal Cross Section 13.006 sq in PERFORMANCE Steel Grade L80 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Body Yield Strength 1,040,000 Ibs Internal Yield Pressure 5,210 psi Collapse Pressure 2,470 psi Connection Data • Regular OD 11.750 in Threads Per Inch 5 Blake -Up Thread Turns 1 PERFORMANCE Steel Grade L80 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Joint Strength 1,063,000 Ibs Internal Pressure 5,210 psi Resistance fi`erra SHv ndnd I Premium Connections�'� Print Contact Us Ver 8.6 12.6 Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 12.7 Slow in and out of slips. 12.8 P/U casing hanger joint and M/U to string. Casing hanger joint will come out to the rig with the landing joint already M/U. Position the shoe as close to TD as possible. Strap the landing joint while it is on the deck and mark the joint at (1) ft intervals to use as a reference when landing the hanger. 12.9 Lower string and land out in wellhead. Confirm measurements indicate the hanger has correctly landed out in the wellhead profile. Page 19 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 12.10 RIU circulating equipment and circulate the greater of 1 x casing capacity or 1 x OH volume. Elevate the hanger offseat to avoid plugging the flutes. Stage up pump slowly and monitor losses closely while circulating. 12.11 After circulating, lower string and land hanger in wellhead again. 13.0 Cement 10-3/4" Surface Casing 13.1 Hold a pre job safety meeting over the upcoming cmt operations. Make room in pits for volume gained during cement job. Ensure adequate cement displacement volume available as well. Ensure mud & water can be delivered to the cmt unit at acceptable rates. • How to handle cmt returns at surface, regardless of how unlikely it is that this should occur. • Which pump will be utilized for displacement, and how fluid will be fed to displacement 13.2 13.3 13.4 13.5 PUMP. • Positions and expectations of personnel involved with the curt operation. • Document efficiency of all possible displacement pumps prior to cement job. R/U cmt head (if not already done so). Ensure top and bottom plugs have been loaded correctly. Pump 5 bbls 10 ppg spacer. Test surface cmt lines. Pump remaining 35 bbls 10 ppg spacer. Drop bottom plug. Mix and pump cmt per below recipe. 13.6 Cement volume based on annular volume + 50% open hole excess. Job will consist of lead & tail, TOC brought to surface. Estimated Total Cement Volume: Section: Calculation: Vol (BBLS) Vol ft3 LEAD: 80' x .106 bpf = 8.5 47.8 16" Conductor x 10-3/4" casing annulus: LEAD: (1000' — 80') x .065 bpf x 1.5 = 89.7 504 13-1/2" OH x 10-3/4" Casing annulus: Total LEAD: 98.2 552 TAIL: (1600'-1000') x .065 bpf x 1.5 = 58.5 328 13-1/2" OH x 10-3/4" Casing annulus: TAIL: 90 x .096 bpf = 8.7 48.8 10-3/4" Shoe track: Total TAIL: 67.2 376.8 Page 20 Revision 1 Feb, 2014 2`o s% HilcOlp Energy Company KBU 22-32 Drilling & Completion Procedure Cement Slurry Design: Lead Slurry (1000' MD to surface) Tail Slurry (1600' to 1000' MD) System Extended Conventional Density 12.5 lb/gal 15.2 lb/gal Yield 2.13ft3/sk 1.25 ft3/sk Mixed Water 12.02 gal/sk 5.70 gal/sk Mixed Fluid 12.03 gal/sk 5.71 gal/sk Expected Thickening 5:00 HR:MIN 3:30 HR:MIN Code Description Concentration Code Description Concentration Type1 Cement 94lb/sk Type1 Cement 94lb/sk A-7 CaC12 2% BWOC FP-61 Anti Foam 1 gal/ 100sks CD-32 Dispersent 0.4% BWOC CD-32 Dispersant 0.5% BWOC Additives FI-52 Fluid Loss 0.3% BWOC A-7 CaC12 0.25 % BWOC A-2 Extender 2% BWOC FL-52 Fluid Loss 0.2% BWOC FP-61 Anti Foam 1 gal/100sks Static Free Anti -Static 0.005 Ibs/sk static Free Anti -Static 0.005 Ibs/sk 13.7 Attempt to reciprocate casing during cement pumping if hole conditions allow. Keep the hanger elevated above the wellhead while working. If the hole gets "sticky", land the hanger on seat and continue with the cement job. 13.8 After pumping cement, drop top plug and displace cement with mud. 13.9 Ensure cement unit is used to displace cmt so that volume tracking is more accurate. Be lined up to displace with rig pumps as well, in the event there is an issue during the displacement with the rig pumps. 13.10 Displacement calculation: 1511' x .0962 bpf = 145.4 bbls DL 13.11 Monitor returns closely while displacing cement. Adjust pump rate if necessary. If hanger flutes become plugged, open wellhead side outlet in cellar and take returns to cellar. Be prepared to pump out fluid from cellar. Have some sx of sugar available to retard setting of cement. 13.12 Do not overdisplace by more than 11/2 shoe track volume. Total volume in shoe track is 8.7 bbls. Page 21 Revision 1 Feb, 2014 a H lc KBU 22-32 Drilling & Completion Procedure 13.13 Be prepared for cement returns to surface. If cmt returns are not observed to surface, be prepared to run a temp log btwn 6 — 18 hours after CIP. If returns are not observed to surface, the AOGCC must be notified and a forward plan at remediation must be developed. 13.14 Bump the plug with 500 psi over displacement pressure. Bleed off pressure and confirm floats are holding. If floats do not hold, pressure up string to final circulating pressure and hold until cement is set. Monitor pressure build up and do not let it exceed 500 psi above final circulating pressure if pressure must be held. 13.15 R/D cement equipment. Flush out wellhead with FW. 13.16 Back out and L/D landing joint. Flush out wellhead with FW. 13.17 M/U pack -off running tool and pack -off to bottom of Landing joint. Set casing hanger packoff. Run in lock downs and inject plastic packing element. 13.18 Lay down landing joint and pack -off running tool. Ensure to report the following on wellez: • Pre flush type, volume (bbls) & weight (ppg) • Cement slurry type, lead or tail, volume & weight • Pump rate while mixing, bpm, note any shutdown during mixing operations with a duration • Pump rate while displacing, note whether displacement by pump truck or mud pumps, weight & type of displacing fluid • Note if casing is reciprocated or rotated during the job • Calculated volume of displacement, actual displacement volume, whether plug bumped & bump pressure, do floats hold • Percent mud returns during job, if intermittent note timing during pumping of job. Final circulating pressure • Note if pre flush or cement returns at surface & volume • Note time cement in place • Note calculated top of cement • Add any comments which would describe the success or problems during the cement job Send final "As -Run " casing tall y & casing and cement report to lkellerghilcorp. com. This will be included with the EOW documentation that goes to the AOGCC. C' �IY6 C,� (� Page 22 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 14.0 BOP N/U and Test 14.1 N/D the conductor riser. 14.2 N/U Seaboard multibowl wellhead assy. Install packoff 10-3/4" P-seals. Test to 3500 psi. 14.3 N/U 11" x 5M T3-Energy BOP as follows: • BOP configuration from Top down: I I" x 5M T3-Energy annular BOP/II" x 5M T3-Energy Model 6011i double ram /I I" x 5M mud cross/11" x 51Y1 T3-Energy Model 6011i single ram • Double ram should be dressed with 2-7/8 x 5" VBRs in top cavity, blind ram in btm cavity. • Single ram should be dressed with 2-7/8 x 5" VBRs '` • N/U bell nipple, install flowline. • Install (1) manual valves & (1) HCR on kill side of mud cross. Manual valve used as inside or "master valve". • Install (1) manual valve on choke side of mud cross. Install an HCR outside of the manual valve. ,-- r 14.4 Run 4-1/2" BOP test assy, land out test plug (if not installed previously). l C1s%3Z,P • Test BOP to 250/3500 psi for 5I5 m}n. Test annular to 250/2500 psi for 5/5 min. • Ensure to leave `B" section side outlet valves open during BOP testing so pressure does not build up beneath the test plug. 14.5 R/D BOP test assy. 14.6 Dump and clean mud pits, send spud mud to G&I pad for injection. 14.7 Mix 9 ppg 6% KCl/Kla-Shield drilling fluid for 9-7/8" hole section. 14.8 Set 10" ID wearbushing in wellhead. .11 14.9 Mud loggers not required in the intermediate hole section. R/U Canrig infrared mud gas detector and tie into the Pason PVT (if possible). This will allow gas units to be measured while drilling. 14.10 Rack back as much 4-1/2" DP in derrick as possible to be used while drilling the hole section. 14.11 Install 5" liners in mud pumps. • TSM 1000 mud pumps are rated at 4250 psi (85%) / 275 gpm (100%) with 5" liners. Page 23 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilmix Energy 15.0 Drill 9-7/8" Hole Section 15.1 Prior to P/U 9-7/8" directional BHA — test casing against blind rams to 2600 psi / 30 min. 15.2 P/U below 9-7/8" directional drilling assembly. HALLIBURTON , "i -,' BHA Tally Drilistring LADC Rig BHA# Runt 200 Customer Hitmp Well Name KBU 32-08 Job Number AK-XX- Rig Name Saxon Rig #147 Country USA State I Province Alaska COMPONENT DATA Item It 00-Apti- Hoes PAWS POC &1 SerblNumber OD 6000 ID 2500 aswe 9.875 Weight QbPQ 79.63 TOP corawttion P 4.1)'Z* REG Le"lith (it) 090 cmw J 0,90 2 7* SpetryDril Lobe 718. 6.0 stg 7,000 4.952 93,13 8 4-It2* IF 27.00 27.90 stawtzer 9,625 3 6 314- Non h" FIW, Sub 6.500 2-875 90.% B 4.1t2* IF 245 30,35 4 6 3(4* lategm] 81ada 9 518" gaugo 6,770 2,875 9,625 IDD 55 8 4-Ir2* IF 70 37,35 5 1 6 314' DM Collar 6 690 3125 1 1 10340 84AWIF 925 4660 11 6 * E%VR-P4 CdIat 6,720 2000 10430 8 4-117 IF 14,00 6060 7 63?4* DGR Cdlw 6780 1 920 97,80 P4-10* IF 840 6900 6 intirte SIANKM (ILS) 6.750 3.125 9.750 95.82 8 4.112* IF 3.50 7250 9 6 3A* PWD Collar 6730 1.905 9630 84-1t2' IF 500 7750 10 6 3.14' KIM collar 6.840 1.920 10130 8 41AW IF 7k0 84,50 11 6 34'Tki Calkar 6.890 1 3250 103-60 8 4.112* IF 9,80 9430 12 60.14'14m h" Flax CotIff 6760 2810 10082 8 4-112' IF 31.00 12530 13 6-114' Non hlaq Flex Collar 6.750 2.810 100,82 8 4-112' IF 31.00 156.30 14 6-3,14' Non kin Flax C*IW 6150 2810 10082 8 4-112' IF 30,00 18630 15 6-3.14'Non MN-Fiex Collar 6.750 2810 10082 8 4-14* IF 30,00 21630 16 X-04-112'IFPXCDS-400 6,520 2,750 1 9164 8 4,5COS 40 276 21905 17 6 Jonts 4.1 rZ' HIVDP CO$40 4 60() 2 W? 3666 186X* 404,05 is X-0 COS-40 P X 4 112* IF 8 6.520 2,750 '93.54 8 4,1 t2* IF 2.75 406,80 19 6-14'Wna!horford Hyd Jar 6250 2250 91,01 84-1t2*IF 3231 43911 20 X-0 4-112* IF P X CDS-40 8 C520 2.750 93.54 5 4 5- CDS40 2,75 44166 21 13 Joints 4 - 1 t2' f IWDP COS -40 4500 2687 3686 1 400.03 841,86 841.86 Oft Nun-sbor NOZIMS 603 Bit Sub (in) 9.875 TFA (W) 0,7777 Manufacturer toes Dull Grade In NEW M*" 1^465 Dull Grade Out Serial Number Page 24 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilmix Energy Company 15.3 Ensure BHA components have been inspected previously. 15.4 Drift and caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. 15.5 Bit TFA should be —0.75 — 0.80 in2. We need to pump at —450 - 500 gpm to clean the hole effectively. Have the directional driller run hydraulics calculations to confirm optimum TFA. 15.6 Primary bit will be the Security 9-7/8" MM65. PRODUCTSPECIFICATION'S Cutter Type Seloctcuttet IADC Code M321 Body Type MATRIX Total Cutter Count Obi Cutter Distribution 12= 1�1= Face 0 28 Gauge 12 0 up Drill 6 0 Number of Large Noulcs 6 Number of Stedium Nozzle-s 0 Nunbcr of Small Yorz rs 0 Number of Micro Nmzks 0 Number of Ports (Sire) 0 Number of Replaceable Pons (Sire) 0 Junk Slot Area (sq in) 16.71 Normalized Face Volume 45.444' AN Connection 4-1+2 REG. PIN Reettainien led Make-up Torque* 12461 _ 17,766 WIbs. Nominal Dimensions" Make-up Face to Nose 10.81 in - 275 mm Gauge length 2.5 in • 6J nnm Sleeve Length 0 in - 0 g a l Shia Diameter 6 its - 152 mm Break Out Plate (Mat.ir;LcgacyO) 1819'W44 40 Approximate Shipping: weight 250Lbs. - I I Xg. MCIAE. FEATURES up -Drill Cutters on Gage Pads, V I6- Relieved Gage Material 0771827 'Bit specific rccummendcd auke'up tuuquc is a Punta io of tdu bit I.D. and actual bit sub OD. %xilind a+ spy-cirxd in API RMi Swwa A.A.2. "•tksi;n damens3ans ate a+.+tniartt se t rosy s'aty slightly <m rtutufaetured pnoul tlnlFiMxtan ttnit Bit. and Services aaxtels are rnntiauxwctly rcsies ed and rc6tted. Product stwirwati yen may chang. ritbout notice. C 2013 Halliburton. All rights reserved. Sales of Nalliburton products and sm ices will be in accord solely with the terms and t-anditions contained in the contract between Flallibution and the customer that is applicable to the sale. Page 25 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure 15.7 9-7/8" hole section hydraulic summary: BIT HYDRAULIC PROGRAM Security DBS1 0 Prepared For.- Hkwp KW 3248 By:- Mark BrouiNst Oafs propsrsd:-IN14 Wen HameNo BiTyp Ce-NgeP County Sit Diamstr.: 9lD7C5 n a Sut. IAAP5 N. _ MO out. R _ Mud Weigtri 96 ppg COMPONENTS ID tn. 10 1 13 PV 22 cp 7Fluid a" 945 16" 2 13 YP 25 IW100te n Note 9,875 0400 3 13 Model uw fix a t wrS� 4 13 Flow Ratel 5o0 gpm 5 13 Max. Pump Press. „ 400,_._,�si V- 6 13 Surface equip.? 2 :�.) T Motor bypass TVD Min. TFII 0.3634 In' Drill String! 1288.30 psi 47.62 % Total TFAE 0 7777 in, Annulus 7SA0 psi 2.89 `f. Jet velocity; 206.37 ft s Surfaced 7T.46 psi 2.86 % Press. Drop361.62 psi Special" 200,00 psi 33.27 % Sit Hyd. Power idsAll hp Bit 361.62 psi 13.37 % H. $11. 1 3773 hp"' Impact Face( S07.37 tbf 100.00 % ECO, 9.78 ppg To"VSPP 2705.48 f 00 t0 Tool Joint Lan941% Cop, Pressure Loss DRILL STRING COMPONENTS a Wit psi in. in. OD 10 Drill Pipe (S) ( COS 40 Connections 4.6 3.926 6.37S 3.S SSSS 7$.65 $93.35 HWOP(COS 40 connections, 13 its) 4.3 2.68 6.2S 2-SS 403 2.60 199.60 Weatherford Hyd Jar (COS 40) 6 2.25 6 2-25 31 0.15 32.50 HWDP(COS 40 connections. 6 Jts) 4.5 2.66 6.25 2,65 1 1.29 92.12 X-0 Sub (COS 40 Sox X 4-112" IF Pin) 6.5 2.TS 6.5 2.75 4 0,03 1.76 Joints 6-St4" NM Flax Drill Collars 6.75 2.813 6.T5 2.813 120 0.92 47.65 integral Slade$tabiuter (9.Tr Gauge) 6.75 2.75 6.73 2,75 a 0.04 2.20 MWOTM HOC (Puts") 6,75 ««« «.« 6.75 ««.,. «. 16 ""•'••'•. 450.00 MWO HC1M Collar 6.75 1.42 6.75 1.42 S 0.01 38.46 MWO-PWDCollar 6.76 1A2 6,75 1,42 S 0,01 38.46 MIND EWRP4 J Gamma Collar 6.75 1,42 61S 1.42 22 0.04 169.24 MIND Directional Collar $16 1.42 6.7S 1,42 0.02 69.23 integral SladoStabititer (9.76" Gauge) 8.75 2.76 8.7S 2.75 0.01 2,20 Float Sub 8,75 2.T5 6.75 2.75 3 0.02 /.32 7' Sp"DMI Labe 71".0 Stg. 7 »`•••••«,• 7 »•«•»•••, 28 •»•••»••« 450.00 ANNULAR I Hole to Pipe 00 _SECTiONSI in. in, Casing 9.95 4.5 Length n 1500 Cum. Dgpth 1500 Cap, biota 114.75 Annutsr Rtmin* 153.61; CrHkof _^,,,__flTminj 303.43 Type of Flow L Pressure Loss _ pM 16.62 Open Hotel 9.875; 4.6 4056 S558 304.59 IscillS 305AS L 46.43 Open HOW 9.875E 4.5 403 5961 302S Ise.611 305.0s L 4,61 Open HOW 9.875, 6.25 31 S992 1.76 209.66 354.73 L 0.77 Open Hole, 9.8T5! 4.5186 6178 13.96 1S8.61'i 305.05 L 2.13 Open Holm 9.8TS' CS 4 6162 021 221.7S� 364.58 L 0.t1 Open Hotel 8.8T5 6.75 120 6302 $ 04 23$.89 31SA9 L 4.00 Open Hotel 98T5 6.75 S 6307 0 25 23$.89` 375.J9 L 0.17 Open Hole 9.$75 6.7S 16 6323 0.81 235,891 375,49 L 0.53 Open Hotel 9.8T5 6.75 Open Hole 9.8T5� 6.75 5 5 6328 8333 0.2$ 0.25 23$ 89f 235.89i 37SA9 37S.49 L L 0.17 0,17 Open Hotel 9.875} 6.7S 22 63SS lAl 235.89 3TSA9 L 0.73 Open Hote' 9.875' 6.75 9 6364 OAS 235.99 375A9 L 0,30 Open Hole 9.875 c75 S 6369 0.25 23S.89 375.49 L 0,17 Open Hole! 9.67s; 6.75 Open Hots 9.875' 7 3 28 6372 6400 0.15 1.32 235.09j 25260 375A9 387AT L 0.10 1.10 a L Page 26 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure 15.8 9-7/8" hole section mud program summary: Weighting material to be used for the hole section will be barite. Additional barite will be on location to weight up the active system (1) ppg above highest anticipated MW. MD Totco PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller's console, Co Man office, Toolpusher office, and mud loggers office. System Type: 9.0 — 9.5 ppg 6% KCl/Kla-Shield fresh water based drilling fluid. Properties: Depths Density Plastic Viscosity Yield Point HTHP FL CL — LGS (%) - (Mg/0 1600'-6,100'( 9 — 9.5 15 - 30 20 - 30 <10 20,000 — < 6% j 32,000 System Formulation: M-1 Swaco "Kla-Shield" Drilling Fluid Product Concentration Water 0.905 bbl Flowzan 1 ppb (Viscosity) PolyPac Supreme UL 1 ppb (API Fluid loss) M-1 Wate As needed for density (Weighting Agent) Potassium Chloride (KCL) 21.8 ppb (Inhibition) Busan 1060 0.4 ppb (Biocide) EMI-2009 6 ppb (Shale/Clay Inhibition) DF-9065 0.05 ppb (Anti -foaming agent) Asphasol Supreme 4 ppb (Shale/Coal Stabilizer) Sack Black 3 ppb (Gilsonite Shale/Coal Stabilizer) Caustic Soda 0.2 ppb (pH controller) Page 27 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 15.9 TIH, Conduct shallow hole test of MWD and confirm Gamma Ray LWD functioning properly. 15.10 Continue in hole and tag TOC. Note depth tagged on AM report. 15.11 Drill out plugs and shoe track. Clean out rat hole and drill an additional 20' of new formation. 15.12 CBU and condition mud for FIT. 15.13 Conduct FIT to 12 ppg EMW. 15.14 Drill 9-7/8" hole section to 6100' MD / 5566' TVD. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Pump at 500 gpm. Ensure shaker screens are set up to handle this flowrate. • Utilize inlet experience to drill through coal seams efficiently. Coal seam log will be provided by Hilcorp Geo team, try to avoid sliding through coal seams. Work through coal seams once drilled. • Keep swab and surge pressures low when tripping. • Make wiper trips every 500' or every couple days unless hole conditions dictate otherwise. If tight hole is encountered, screw in and begin backreaming connections until hole conditions improve. Shales in the Beluga formations are notorious for swelling and causing tight hole. Most of the time, backreaming them on a short trip is the only solution. • Ensure shale shakers are functioning properly. Check for holes in screens on connections. • Adjust MW as necessary to maintain hole stability. Keep HTHP fluid loss < 10. • Take MWD surveys every other stand drld. Surveys can be taken more frequently if deemed necessary. • Ensure to pre -treat the active system with 10 ppg Calcium carbonate. Have additional fibrous and other bridging material on location in the event lost returns is encountered. There are many stacked sands that are severely depleted that will be penetrated in the 9-7/8" hole section. Page 28 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure 15.15 Casing Point selection • KDU 06 is the closest offset to use for correlation to pick casing point. Below is the annotated GR + gas + resistivity log. • We want to set the 7-5/8" shoe 10 - 20' into the shale below the MB 1 A sand. • This will allow us to drill out from the shoe, and conduct a LOT to gather some useful fracture data for these shales at this depth. This will aid greatly in the frac design for the well. 7-5/8" casing point 5560' — 5590' tvd 15.16 At TD; pump sweeps, CBU, and pull a wiper trip back to the 10-3/4" shoe. 15.17 TOH with the drilling assy, handle BHA as appropriate. Page 29 Revision 1 Feb, 2014 r KBU 22-32 Drilling & Completion Procedure 16.0 Run 7-5/81' Production Casing 16.1 R/U and pull 10" ID wear bushing. Install and test 7-5/8" casing ram in top ram cavity. Test to 250/3500 psi. 16.2 R/U Weatherford 7-5/8" casing running equipment. • Ensure 7-5/8" BTC x CDS-40 XO on rig floor and M/U to FOSV. • R/U fill up line to fill casing while running. • Ensure all casing has been drifted on the deck prior to running. • Be sure to count the total # of joints on the deck before running. Keep hole covered while R/U casing tools. Record OD's, ID's, lengths, S/N's of all components w/ vendor & model info. 16.3 P/U 7-5/8" 29.7# L-80 BTC shoe joint, visually verify no debris inside joint. 16.4 Continue M/U & thread locking the shoe track assy consisting of: • (1) Float shoe joint w/ float shoe bucked on. Install (2) bow spring centralizers at 10' from each end over a stop collar. • (1) Baker locked joint. Install (1) centralizer mid tube over a stop collar. • (1) Float collar joint w/ float collar bucked on pin end. Install (1) centralizer mid tube over a stop collar. • Ensure proper operation of float shoe and float collar. 16.5 Run 7-5/8" 29.74 L-80 BTC casing. • Fill casing while running using fill up line on rig floor. • Use "API Modified" thread compound. Dope pin end only w/ paint brush. • Utilize a collar clamp until weight is sufficient to keep slips set properly. • Install centralizers over couplings on every other joint to 2000' MD. 16.6 Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 16.7 Slow in and out of slips. 16.8 P/U casing hanger joint and M/U to string. Casing hanger joint will come out to the rig with the landing joint already M/U. Position the shoe approx 10 — 20' above TD. Strap the landing joint while it is on the deck and mark the joint at (1) ft intervals to use as a reference when landing the hanger. Page 30 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure HiICOIp Energy Company Casing and Tubing Performance Data PIPE BODY DATA GEOMETRY Outside Diameter 7.625 in Wall Thickness 0.375 in API Drift Diameter 6.750 in Nominal Weight 29.70 ibs/ft Nominal ID 6.875 in Alternative Drift Diameter n.a. Plain End Weight 29.06 Ibs/ft Nominal cross section 8.541 in PERFORMANCE Steel Grade L80 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Tension Yield 683,000 in Internal Pressure Yield 6,890 psi Collapse Pressure 4,790 psi Available Seamless Yes Available Welded No CONNECTION DATA TYPE: BTC GEOMETRY Coupling Reg OD 8.500 in Threads per in 5 Thread turns make up 1 PERFORMANCE Steel Grade L80 Coupling Min Yield 80,000 psi Coupling Min Ultimate 95,000 psi Joint Strength 721,000 Ibs Internal Pressure Resistance 6,890 psi 7-5/8" BTC Estimated M/U Toraue Casing OD Est Torque to Reach Triangle Base 7-5/8" 7,630 ft-lbs 16.9 Lower string and land out in wellhead. Confirm measurements indicate the hanger has correctly landed out in the wellhead profile. 16.10 R/U circulating equipment and circulate the greater of 1 x casing capacity or 1 x OH volume. Elevate the hanger offseat (slightly) to avoid plugging the flutes. Stage up pump slowly and monitor losses closely while circulating. 16.11 Continue circulating until required properties achieved for cmt operations. 16.12 After circulating, lower string and land hanger in wellhead again. Page 31 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 17.0 Cement 7-5/8" Cement Procedure 17.1 Hold a pre job safety meeting over the upcoming curt operations. Make room in pits for volume gained during cement job. Ensure adequate cement displacement volume available as well. • How to handle cmt returns at surface, regardless of how unlikely it is that this should occur. • Which pump will be utilized for displacement, and how fluid will be fed to displacement pump. • Positions and expectations of personnel involved with the cmt operation. • Document efficiency of all possible displacement pumps prior to cement job. 17.2 R/U cmt head (if not already done so). Ensure top and bottom plugs are loaded correctly. 17.3 Pump 5 bbls 10 ppg spacer. Close low torque on plug dropping head, test surface cmt lines to 4000 psi. 17.4 Pump remaining 35 bbls 10 ppg spacer and drop bottom plug. 17.5 Mix and pump slurry per below calculations: Section: Calculation: Vol (BBLS) Vol (ft3) LEAD: (5,600'- ,000' x .038 bpf x 1.25 = 123.5 693 9-7/8" OH x 7-5/8" csg: Total Lead: 123.5 bbls 693 ft3 TAIL: 500' x .038 bpf x 1.25 = 24 135 9-7/8" OH x 7-5/8" csg: TAIL: 90' x .046 bpf = 4.1 23 7-5/8" Shoe Track: Total Tail: 1 28.1 bbls 158 ft3 151 Page 32 Revision 1 Feb, 2014 Z C'V SX 77 T--( J KBU 22-32 Drilling & Completion Procedure Slurry Information Lead Tail System Light Weight Conventional Density 10.5 lb/gal 13.5 lb/gal Yield 3.32 ft3/sk ✓ 1.81 ft3/sk Mixed Water 12.67 gal/sk 9.26 gal/sk Mixed Fluid 12.67 gal/sk 9.27 gal/sk Expected Thickening 5:30 HR:MIN 5:00 HR:MIN Expected ISO/API Fluid Loss 48cc/20min 24 cc/30min Code Description Concentration Code Description Concentration G Cement 94lb/sk G Cement 94lb/sk BA-90 Bonding Agent 15% BWOC BA-90 Bonding Agent 10% BWOC FP-61 Anti Foam 1 gal/100sks Static Free Anti -Static 0.005 Ibs/sk Static Free Anti -Static 0.005 Ibs/sk FP-61 Anti Foam 1 gal/100 sks Additives Cello Flake Lost - Circulation material 0.25lbs/sk R-3 Retarder 0.4% BWOC CD-32 Dispersant 1% BWOC FL-62 Fluid Loss 1.25% BWOC FL-52 Fluid Loss 1% BWOC ASA-301 Anti -Settling Agent 0.2% BWOC A-2 Extender 0.5% BWOC A-2 Extender 0.5% BWOC LW-6 Extender 47% BWOC 17.7 After pumping cement, drop flexible shut-off plug and displace cement with mud. Use the cement unit to displace with as volumes can be tracked much more accurately. Displacement calcs: • 6,010' x .0459 bpf = 276 bbls. • Displace with 10 ppg 6% KCl/Kla-Guard drilling fluid out of mud pits. 17.8 Monitor returns closely while displacing cement. Adjust pump rate if necessary. 17.9 Do not overdisplace by more than I/2 shoe track volume. Total volume in shoe track is 4.1 bbls Page 33 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure 17.10 There should be no curt returns to surface. TOC is planned to be at 3000' MD. 17.11 Bump the plug with 500 psi over displacement pressure. Bleed off pressure and confirm floats are holding. If floats do not hold, pressure up string to final circulating pressure and hold until cement is set. If this is the case, monitor the pressure on the casing and do not let it exceed 500 psi over the final pump pressure. Ensure to report the following on wellez: • Pre flush type, volume (bbls) & weight (ppg) • Cement slurry type, lead or tail, volume & weight • Pump rate while mixing, bpm, note any shutdown during mixing operations with a duration • Pump rate while displacing, note whether displacement by pump truck or mud pumps, weight & type of displacing fluid • Note if casing is reciprocated or rotated during the job • Calculated volume of displacement, actual displacement volume, whether plug bumped & bump pressure, do floats hold • Percent mud returns during job, if intermittent note timing during pumping of job. Final circulating pressure • Note if pre flush or cement returns at surface & volume • Note time cement in place • Note calculated top of cement • Add any comments which would describe the successor problems during the cement job Send final "As -Run " casing tall v & casing and cement report to lkellerghilcorp. com. This will be included with the EOW documentation that goes to the AOGCC. 17.1 R/D cement equipment. Flush out wellhead with FW. 17.2 Back out and L/D landing joint, flush out wellhead with FW. 17.3 M/U pack -off running tool and pack -off to bottom of landing joint. Set casing hanger pack -off. Run in lock downs and inject plastic packing element. Test void to 250/3000 psi for 10 min. 17.4 Lay down landing joint and pack -off running tool. Page 34 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 18.0 Drill 6-3/4" Hole Section 18.1 Remove 7-5/8" casing rams from BOP. Install 2-7/8" x 5" VBRs in top cavity, test to 250/3500 psi. BOP configuration should be (from top down): Annular/VBR/Blind/Mud cross/VBR. 18.2 Test BOPS on 4-1/2" and 5" test joints. 18.3 R/U Mud loggers for the 6-3/4" production hole section. They need to be set up to generate mud log, pixler plots, and collect (3) sets of samples every 20 ft. 18.4 Pull test plug, run and set wear bushing. 18.5 Run CBL on 7-5/8" casing. 18.6 Ensure BHA Components have been inspected previously. Rack enough 4" DP in derrick to drill the entire open hole section without having to pick up pipe from the pipeshed. 18.7 Drift & caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. 18.8 Ensure TF offset is measured accurately and entered correctly into the MWD software. 18.9 Confirm that the bit is dressed with a TFA of 0.46 .sgin. Have DD run hydraulics models to ensure optimum TFA. We want to pump at 270 gpm. 18.10 Motor AKO should be set at 1.22 deg to allow maximum rotation. Max DLS in the 6-3/4" hole is planned at 1 deg/100. Page 35 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp EneW comt�r 18.11 P/U below 6-3/4" directional drilling assy: HALLIBURTON WELL INFORMATION Created On Jan 09 2014 BHA Tally Customer Hilcorp Well Name KBU 32-08 Orilistring Job Number : AK-XX- Rig Name : Saxon Rig #147 IAOC Rig BHA# Country USA Run# 300 State t Province : Alaska COMPONENTDATA Item D"alpflon L 1 HDBS EM65D PDC bit So" Number .. 4.500 to 1.563 Gauge 6.750 Wolght 47.67 TOP P 3-1l2" REG Length 0.75 cumulau" Length (4) 0.75 2 5" SpenyDrili Lobe 617 - 6.0 stg 5.0W 3.120 48,00 8 3-1rr IF 24.00 24.75 Statjf2er 6,560 3 Floal Sub 4,750 2.250 46.84 8 3-112" IF 2.25 27.00 4 Wolded Blade Stabilizer 4.840 2,00'J 6.5W 5200 8 3-1/r IF 5,00 32.00 5 4 X4' DM Collar 4,730 1.250 47,00 B 3-1/2" IF 9.20 41.20 6 4 3t4' Slim Phase 4 Collar 4.750 1.250 4820 8 3-1t2" IF 24.50 65.70 7 inlirte Stabilizer (ILS) 4.740 1.920 6.000 50.27 B 3-1i2" IF 3.50 69.20 8 4 314" ALD Collar 4,750 12% 5,625 45,50 8 3-10 IF 14.00 83.20 SlabAzor 5 625 9 4 a'4" CTN Collar 4.750 1.250 5050 8 3-1P2" IF 11.00 94.20 10 4 a(4" PWD 4.750 1.250 47.90 B 3-1Z IF 9,20 103.40 11 4 314" TM HOC (Pulses) 4,750 1.250 40,90 8 3-1t2" IF 11.00 114.40 12 4 3t4" BAT Collar 4.750 1,250 45,70 B NC 38 26,42 140.82 13 4.75' Fiox Collar 4,750 2,250 46,84 8 3-Irr IF 31.00 171,82 14 4 75" Flex Collar 4.750 2.250 46,84 8 3-112" IF 31,00 202,82 15 X-0 3-1,'7' IF Pin X 4-11r CDS 40 Box 5.250 2.250 60.22 B 4.5' CDS40 2.75 205.57 16 6 Joints 4-1l2' HWDP 4.500 2.750 41.00 185.00 390.57 17 X•0 4 112' COS-40 Put X 31t2' IF box 5,300 2,250 61 64 B 3.1)7- IF 2.76 393.32 16 4 X4" Woathorford Hyd Jar 4.750 2.250 46 84 8 3 1F2" IF 30.00 423,32 19 X-O 3-1Z IF Pin X 4-it2" CDS-40 Box 5.300 2.750 54.94 8 4.5' COS-40 2,75 426.07 20 13 Joints 4-11r HWDP 4.500 2.750 41.00 400.00 826.07 826.07 Bit Number Bit Size (in) Manufacturer Model Serial Number Nozzles 6.760 TFA HOBS Dull Grade in ER1650 Dull Grade Out (In2) : 6x10 : 0.4602 Page 36 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure HilmEnergy Company 18.12 Hydraulics Summary: Security DBSI BIT HYDRAULIC PROGRAM 0 Prepared for,- HUmp KW 3248 By:. Mark ISroutYrt Date prepared;- 1)9114 Oporator:• Hocorp Well NsmaMo - KiMD 324Nt Bit Type POC Contractor: County. Kenai Bit Oiar.MD 9 78 in. swv_eytAbaaut:- ____ StatetCourttry;• AKJtiSA OUr MO Out - Mtn Mud Waight 10.5 Ppg COMPONENTS t0 (in.), To it 1 10 Py 13 cp 6.975 sm 2 10 YP 11}_lW100te Open Holo 6.75 9350 3 10 Fluid Model i'c-wlow -'Vera8ucdEkes' . 4 10 Flow Rate) 275 gpm 5 10 Max. Pump Press. 4000 M 6 10 Surface oquip.? 2 7 Motor bypass? 8 TVD? ..,-- 78$3 R 9 NofNoulu(.10_';rta.sCarturs, . _ _ 10 v.. Min. TFA? 0.1974 in° Drill String 873190 psi 3S.40 % Total TFA!,, 0 4602 ins Annulus 369.97 psi 14.99 % Jet Velocity! 191.62 tb's Press. Drop, 345.31 Surface SPocIW 29.19 psi 850.00 1.18 % 34.44 % psi Bit Hyd. Power! S5.40 hp Bit psi 345.31 psi 13.99 % H. S. 0 1.5482 hpW Impact Force 288.69 tbt I TotatlSPp' 2468.37 psi 100.00% ECO; tlAi pa OD ID Tool Joint Length Cap. Pressure Loss In, in. Do 10 DRILL STRING COMPONENTS fl bbls psi Drift Pipe (S) ( COS 40 Connections 4.6 3.026 6.37E 3.5 $S17.5 120.53 3/9.99 HINDP(CDS 40 connections, 13 Jb) 4.5 2.66 US 2.55 403 2.60 "Al 4Jd4' Weathedord Hyd Jar wl X-0's 5 225 5 225 35 0.17 12.43 HWDP(CDS 40 connections, 6 Jts) 4.5 2.68 625 2.55 180 1.29 31.60 X•O Sub (COS 40 Box X 3-//2- IF Pin) 4.7 215 5 2.3 4 0.02 0.92 2 Joints NM Flax Drift Collars 4.75 2.5 4,75 2.5 a 0.36 13.61 MIND / Bat Sonic 4.7E 1.25 4.7E 1.25 26 0.04 112.82 MWOI TM HOC (Puller) 4.7E ""•'•" 4.75 "•'*•""` 11 """"'• 400.00 MWDIPWD 4.16 1.25 4.7S 1.25 9 0,01 39.05 MWOIAU)-CTN (Nukos) 4.75 12S 4,75 1.25 29 0.04 108.48 inlino Stabilizer OLS 6" Gauge) 4.75 1.2E 4.7E 1,2S 3,S 0.01 15.19 MWDJ DlrectlonalPShm Phase 4 4.76 US 4,76 12S 34 0.05 147.S4 NU String Stabilizer (6.626Gauge) 4,75 2 4.7E 2 S. OA2 323 Float Sub 4.75 2.5 4.75 2_5 2.0 0.02 0.57 5- SM*rYDr81 Lobe W7.6,0 s%RWIABO 5 •.........•• 5 • ,.• • 28 •.......•••. 450,00 ANNULAR! HWe to Pipe 00 Length Cum. Cap, Annular Critical Type of Pressure Loss _- 3ECTI*NSI in. _.»In. VPIII Dbts IUmin Nmin Flour �1 Casing; 6.875 4.S Open Hok 6.75 4.5 "00 2117.5 6400 $517.6 167.96 62.07 249A9� 310.158 26621I 316.12 L 242,12 89.68 Open Hob, 6.75 4.Si 403 8920.S 9.91 24628 316.12 L 17.07 Open Hob' 6.75 4.7 3S 8955.s 0.80 287.tb. 325.86 L 1.77 Open Hobi 8.76 4.5 186 9141.E 4.57 26628i 316.12 L 7.88 Open How; IiIS 4,7 4 9145.E 0.09 267.1bi 325.8E L 020 Open Hoto; 6.75 4.75 60 920S.5 1.34 293,051 32810 L 3.19 Open Holay b,7S 4.75 26 9231,5 0.5E 293.05 328.So L 1.38 Open HOW 6,754.75 11 9242.5 0.25 29105' 32850 L 0.58 Open HOIo° 6.75� 4.75 Open Hotel 6,75 4.75 9 25 9251.5 9276.5 020 0,56 293.05! 328.50 293.051 328,50 L L 0.48 1.32 Open Noted 8.75 1.753 Open Hole', 61 4.75E 3.5 34 9280 9314 OAS293.OSa 0.76 328,50 29105i 329.50 L L 0.19 1,50 Open Holm 6.75, 4.75 5.3 9319.E 0.12 293.051 328.50 L 029 Open Hold 6.754.75 2.5 $322 0.06 293.05' 328.50 L 0.13 Open Hole", ll7ys 5 28 9350 0.56 327.793 343,12 L 1.91 Page 37 Revision 1 Feb, 2014 1/ Hilcorp En-gy y 18.13 Primary bit will be the Security EM65D. PRODUCT SPECIFICATIONS Butter Type X3 - Extreme Drilling, IADC Code iM323 Body Type MATRIX Total Cutter Count 11 Cutter Distribution 13110 11=12 Face 4 13 Gauge 11 0 Up Drill S 0 Number of Large Nozzles 0 Number of Medium Muzzles 0 NumbernfSmali Norrlcs 6 Number of Micro Nozzles 0 Number of Poms (Sia) 0 Number of Replaceable Potts (Sirs) 0 Junk Slot Area I q in) 8.68 Normalised mace Volume 14.6V% API Connection 3-11 REG, PIN Recommended mend<d Make -Up Torque, $.I71— 7,665 Ft*lbs. Nominal Dimensions" Make -Up Face to Nose 9.42 in - 239 mm Gauge Length 2 in • M mm Sleeve Length 0 in - 0 men Shank Diameter 43 in - 114 tint Break Out Plate jMat.*/tcgacyAq 1819$1440,30 Approximate Shipping Weight 90Lbs. - 41 Kg. SPECIAL, FEATURES Up -Drill Cutters on Gage Pads, 1116" Stepped Gagc. Optimized Dual Row - `D" Feature KBU 22-32 Drilling & Completion Procedure Material #761302 `Bit sppccific rrt, immendcd make -alp toryae is a fumaive of the bit 1,M and actuA bit uwtt U.U. utiliextl a% ►pnifi- i in Art RP76 Scoton A &Z. •sIksign dimetimtanc are n xnirml VA nary t-mry slightly on ntanafacturcd rrax#tut. tlalliburton Drill Div& and Services nsokh, ore continuotoly rox%cd and rcfWd, Ptx*K1 mrvOrrratiortt may chanty a Ithout notice. C, 2013 Ilalliburton, All rights reserved.. Sales of Nailiburton products and services will be in accord solely with the terms and conditions contained in the contract between Hatliburton and the customer that is applicable to the sale. Page 38 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilmix Energy Company 18.14 TIH to TOC. Shallow test MWD on trip in. Note depth TOC tagged at on AM report. 18.15 Conduct casing test to 3500 psi / 30 min. Di(2a �, rar 18.16 Drill out shoe track and additional 20' new formation. CBU and prep for FIT. 18.17 Conduct LOT per below guidelines. It maybe necessary to have a cmt unit on location so that the FIT can be done appropriately. • Pump at 0.25 bpm, pump down DP and annulus at same time. • Record vol + pressure every 0.25 bbl pumped. • "Leak Off' occurs when pressure vs volume relationship becomes non -linear. • When this occurs, continue pumping for (3) more data points, then shut down pump. • Allow pressure to stabilize for 10 seconds, then begin recording shut in data. • Record pressures every minute for the first 10 minutes, then every 10 minutes for the next hour. • This data will be used to design the frac for this well. • A minimum of 12.5 ppg is required to drill ahead. 18.18 Drill 6-3/4" hole to 10,91 V MD / 9,877' TVD • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Utilize Inlet experience to drill through coal seams efficiently. Coal seam log will be provided.by Hilcorp Geo team, try to avoid sliding through coal seams. Work through coal seams once drilled. • Keep swab and surge pressures low when tripping. • See attached mud program for hole cleaning and LCM strategies. Ensure adequate LCM is available on location in the event returns are lost. • Ensure solids control equipment functioning properly and utilized to keep LGS to a minimum without excessive dilution. • Adjust MW as necessary to maintain hole stability. • Ensure mud engineer set up to perform HTHP fluid loss. • Maintain HTHP fluid loss < 9. • Take MWD surveys every other stand drilled. • Pull wiper trips every 500 — 1000 ft drilled. If tight hole is encountered, screw in and begin backreaming connections until hole conditions improve. Page 39 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 18.19 6-3/4" hole section mud program summary: Weighting material to be used for the hole section will be barite. Additional barite will be on location to weight up the active system (1) ppg above highest anticipated MW. ✓ MD Totco PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller's console, Co Man office, Toolpusher office, and mud loggers office. Avoid adding the following products to the mud for the production hole section: Sack Black, Asphasol Supreme, Resinex, any Conqor product The above products can have a negative impact on the reservoir. System Type: 10 10.5 ppg 6% KCl/Kla-Shield fresh water based drilling fluid. Properties: Depths Density Plastic Viscosity Yield Point HTHP FL CI LGS (%) m /I 6100 - 1091 1 10 — 10.5 10 - 16 15 - 23 <9 20,000 — < 6 1-1 32,000 System Formulation: M-1 Swaco "Kla-Shield" Drilling Fluid Product Concentration Water 0.905 bbl Flowzan 1 ppb (Viscosity) PolyPac Supreme UL 1 ppb (API Fluid loss) M-1 Wate As needed for density (Weighting Agent) Potassium Chloride (KCL) 21.8 ppb (Inhibition) Busan 1060 0.4 ppb (Biocide) EMI-2009 6 ppb (Shale/Clay Inhibition) DF-9065 0.05 ppb (Anti -foaming agent) Asphasol Supreme 4 ppb (Shale/Coal Stabilizer) Sack Black 3 ppb (Gilsonite Shale/Coal Stabilizer) Caustic Soda 0.2 ppb (pH controller) 18.20 Hilcorp Geologists will follow LWD log closely to determine exact TD. 18.21 At TD; pump sweeps, CBU, and pull a wiper trip back to the 7-5/8" shoe. 18.22 TOH with drilling assy. Page 40 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 18.23 R/U and attempt to run RFT log. 18.24 Make a wiper trip with drilling assy after RFTs, LDDP on trip out of hole. 19.0 Run 5" Production Long String 19.1 R/U Weatherford 5" casing running equipment. • Ensure 5" DWC/C HT x CDS 40 crossover on rig floor and M/U to FOSV. • R/U fill up line to fill casing while running. • Ensure to R/U Tesco or Weatherford CRT so that string can be rotated if necessary while running. • Ensure all casing has been drifted on the deck prior to running. • Be sure to count the total # of joints on the deck before running. • Keep hole covered while R/U casing tools. • Record OD's, ID's, lengths, S/N's of all components w/ vendor & model info. 19.2 P/U shoe joint, visually verify no debris inside joint. 19.3 Continue M/U & thread locking shoe track assy consisting of- (1) Shoe joint w/ shoe bucked on & threadlocked (coupling also thread locked). • (1) Joint with float collar bucked on pin end & threadlocked (coupling also thread locked). • (1) Joint with landing collar installed INSIDE pin end. • Solid body centralizers will be pre -installed on shoe joint & FC joint. • Install a solid body centralizer on landing collar joint. Leave centralizers free floating so that they can slide up and down the joint. • Ensure proper operation of float shoe. 19.4 Continue running 5" prod casing. • Fill casing while running using fill up line on rig floor. • Use "API Modified" thread compound. Dope pin end only w/ paint brush. • Install solid body centralizers on every joint to 6,400' MD. Leave the centralizers free floating. • Ensure to install swell packer joint so that it is 500' from the 7-5/8" shoe when landed out. • Utilize a collar clamp until weight is sufficient to keep slips set properly. 5" DWC/C HT M/U torques Casing OD Minimum Maximum Yield Torque 5" 10,700 ft-lbs 12,100 ft-lbs 16,000 ft-lbs Page 41 Revision 1 Feb, 2014 0 KBU 22-32 Drilling & Completion Procedure Technical Specifications Connection Type: Size(O.D.): Weight(Wall): DWCIC-HT Casing Sin 18.00 jj.�R (0.362 in) ti6tariaarc Material L-80 Grade 80.000 Minimum Yield Strength (psi) 95.000 Minimum Ultimate Strength (psi) Pipe Dimensions 5.0D0 Nominal Pipe BodyO.D.(in) 4.276 Nominal Pipe Bodyl.D.(in) 0.362 Nominal Wall Thickness (in) 18.00 Nominal Weight (lbstft) 17.95 Piain End Weight (I bstft) 5.275 Nominal Pipe BodyArea (min) Pipe Body Performance Properties 422,000 Minimum Pipe Body Yield Strength(Ibs) 10,490 Minimum Collapse Pressure (psi) 10,140 Minimum Internal Yield Pressure (psi) 9,300 Hydrostatic Test Pressure (psi) Connection Dimensions 5.563 Connection O.D. (in) 4.276 Connection I.D. (in) 4.151 Connection DriftDiameter(in) 4.06 Make-up Loss (in) 5.275 Critical Area (U in) 100.0 Joint Efficiency(%) Connection Performance Properties 422.000 Joint Strength (lbs) 16,750 Reference String Length (ft) 1.4DesignFactor 457,000 API Joint Strength (lbs) 422,000 Compression Rating (lbs) 10,490 API Collapse Pressure Rating(psi) 9.910 API internal Pressure Resistance (psi) 73.3 Maximum UniaxialBend Rating jdegrees/100ft) C�pRoirjm8te . Field End Torque Values 10.700 Minimum Final Torque(ft-Ibs) 12,100 Maximum Final Torque (ft-Ibs) 16,000 Connection YieldTorque (ft-Ibs) Grade: L-80 IAM �I U S A tiAM-LSA 4Q4 %V. Sam t!omm Pd(W}°. suie 150 tea *M Tx —77041 prone: 713-41V-= Fa c 713-479 323d -rrag: VAMK15h barn-u;a,cexn For detailed infomlationon perbrmanoe properties, refer to DWC Connection Data Notes on followingpage(s). Connection spec6cabonswithinthecontrolon/Af.1-USAwerecorrectasofthedateprinted.SpecifcationsaresutriecttochargeMhout notice. Certan comectbn specif ications are dependenion the mecl ancal properties of the pipe. hiecharkaiproperties ofm1 proprietaty pipe grades were obtained from mill pubkatbns arad are subject to char . Pic,perties of mill proprietarygrades, should be confiened wth the mill. Users are advised toobtan current cor neczbn specificaiiors and verify pipe meN*anicalproperfies for each application. Page 42 Revision 1 Feb, 2014 a KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 19.5 M/U casing hanger joint to string. Casing hanger joint will come out to the rig with the landing joint already M/U. Position the shoe approx 10 — 20' above TD. Strap the landing joint while it is on the deck and mark the joint at (1) ft intervals to use as a reference when landing the hanger. 19.6 Lower string and land out in wellhead. Confirm measurements indicate the hanger has correctly landed out in the wellhead profile. 19.7 R/U circulating equipment and circulate the greater of 1 x casing capacity or 1 x OH volume. Elevate the hanger offseat (slightly) to avoid plugging the flutes. Stage up pump slowly and monitor losses closely while circulating. 19.8 After circulating, lower string and land hanger in wellhead again. Page 43 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure 20.0 Cement 5" Production Long String 20.1 Hold a pre job safety meeting over the upcoming curt operations. Ensure the below is covered during the meeting: • How to handle cmt returns at surface, regardless of how unlikely it is that this should occur. • Which pump will be utilized for displacement, and how fluid will be fed to displacement pump. • Positions and expectations of personnel involved with the curt operation. • Document efficiency of all possible displacement pumps prior to cement job. 20.2 Attempt to reciprocate the long string during cmt operations. 20.3 Pump 5 bbls 12 ppg MUDPUSH II spacer. 20.4 Test surface cmt lines to 4500 psi. 20.5 Pump remaining 15 bbls 12 ppg MUDPUSH II spacer. 20.6 Mix and pump 15.3 ppg class "G" cmt per below recipe. Ensure cmt is pumped at designed weight. Job is designed to pump 100% OH excess. K 0 Section: 7-5/8" x 5" long string Overlap: Calculation: 500' x 0.022 = Vol (BBLS) 11 Vol (ft3) 61.8 6-3/4" OH x 5" Liner: (10,911 — 6,100') x 0.020 x 2 = 194 1089 Shoe Track: 90' x 0.019 = 1.7 9.5 Total Volume: 206.7 bbls 1160 ft3 Page 44 Revision I Feb, 2014 � 0 Sx KBU 22-32 Drilling & Completion Procedure Slurry Information: Tail System Conventional Density 15.7 lb/gal Yield 1.18 ft3/sk Mixed Water 4.968 gal/sk Mixed Fluid 4.968 gal/sk Expected Thickening 7:00 HR:MIN Expected ISO/API Fluid Loss 24 cc/30min Additives Code Description Concentration G Cement 94lb/sk BA-10 Bonding Agent 1% BWOC Static Free Anti -Static 0.005 Ibs/sk FP-61 Anti Foam 1 gal/100 sks R-3 Retarder 0.7% BWOC CD-32 Dispersant 0.6% BWOC A-2 Extender 0.4%BWOC 20.7 Drop top plug and displace with filtered 6% KCl. 10,854 ft x .01776 = 192.7 bbls. 20.8 Do not overdisplace by more than '/z shoe track. Shoe track volume is 1.7 bbls. 20.9 Bleed pressure to zero to check float equipment. 20.10 Pressure up again to 3500 psi and hold for 30 min to test production bore. Page 45 Revision 1 Feb, 2014 MW -OM KBU 22-32 ElDrilling & Completion Procedure Hilcorp Energy Company Ensure to report the following on wellez: • Pre flush type, volume (bbls) & weight (ppg) • Cement slurry type, lead or tail, volume & weight • Pump rate while mixing, bpm, note any shutdown during mixing operations with a duration • Pump rate while displacing, note whether displacement by pump truck or mud pumps, weight & type of displacing fluid • Note if casing is reciprocated or rotated during the job • Calculated volume of displacement, actual displacement volume, whether plug bumped & bump pressure, do floats hold • Percent mud returns during job, if intermittent note timing during pumping of job. Final circulating pressure • Note if pre flush or cement returns at surface & volume • Note time cement in place • Note calculated top of cement • Add any comments which would describe the success or problems during the cement job Send final "As -Run " casing tally & casing and cement report to lkeller(j ,hilcorp. com. This will be included with the EOW documentation that goes to the AOGCC. l � � 4-° Jet l-r- 1A P LSdJ S 21.0 RDMO 22.1 Install back pressure valve in hanger neck. N/D BOP. 22.2 N/U tree. 22.3 RDMO Saxon Rig #147. 22.0 Perf and Frac V/23.1 A separate Sundry will be submitted to the AOGCC that will cover the perf & frac operations for KBU 22-32. 23.2 Ensure to run a CBL across 5" to determine TOC after rig has departed. Expedite this to AOGCC ASAP. 23.3 Test 5" x 7-5/8" annulus to 2500 psi after swell packer has had sufficient time to inflate. Page 46 Revision 1 Feb, 2014 23.0 KBU 22-32 Drilling & Completion Procedure BOP Schematic Page 47 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilc,%T camrxar 24.0 Wellhead Schematic 3-1/16, i0N4 KBU 22-32 DP 3-V16" SOM 3-1/16'10N4 A M10 MAMWL 04-[-M 11 x 3-1/2 Ah UM sax elm x 3-1/2 !v M OM W H A+cut. SW-22 11 x 7-S/0 W/Sm ASStMOLY ao-3/4 os CASWO HAMOM -22 0-3/4 x 10-3/4 14 CAS 1 10-3/4 eAW --., 7-6/0 CA6MC ..-, 3-1/2 Adapter, SNs-E-2CLN I I' SM x 3-1/16' IOM 2-1/16 w -�KSEA"A RD 3po0 psi weir ee: a 10,000 psi tree assf 15x103Jtx7-3`$x3dl2 Page 48 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hi1COIp F-«W Ca-p-y 25.0 Days Vs Depth 0 ita E=14 iii1 1! - Page 49 Days Vs Depth 5 10 15 20 25 30 35 Days Revision 1 KBU 22-32 SRU 13-23 12 Feb, 2014 45 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 26.0 Expected Formation Tops and Pressures ANTICIPATED FORMATION TOPS & GEOHAZARDS EXPECTED FL UlO MD TVD (FT) SUBSEA DEPTH Est. Pressure Sterling gas _ 4,141 3,738 (3,642) 250 Sterling 5 2 gas _.. _ 4,856 4,341 (4.245) 1500 Upper Befuga gas 5.484 4,878 (4,782) 900 ?,frddteBetuga Primary Target gas 6,194 5,481 (5.385) 1000 Lower Beluga Primary Target gas 7,192 6,306 (6.210) 1000 Upper Tyonek Primary Target gas 8,480 7,412 -7,316 2500 TyonekD2 Secondary (test) gas 10,384 9,155 -9,059 3700 Total Depth 11,624 10,295 -10,199 normal 27.0 Anticipated Drilling Hazards 13-1/2" Hole Section: Lost Circulation: Ensure adequate amounts of LCM are available. Safe-carb 10, 20, 40, 250, & 750. Ensure G-seal, Pecan nut plug, and Mix II are also available for more severe lost returns incidents. Monitor fluid volumes to detect any early signs of lost circulation. For minor seepage losses, consider adding small amounts of Safe-carb 10 & 20 to the active system at 1 — 2 ppb. Hole Cleaning: Maintain rheology w/ gel and gel extender. Sweep hole with gel or flowzan sweeps as necessary. Optimize solids control equipment to maintain density, sand content, and reduce the waste stream. Maintain YP btwn 25 — 45 to optimize hole cleaning and control ECD. Wellbore stability: Lithology through this zone is a composite of pebble conglomerate and sand in the upper intervals with intermittent clay matrix. Carbonaceous material and coal may be noted. Gravel sizes that are larger than normal can cause hole -cleaning problems. If encountered, be prepared to increase the viscosity. Excessive quantities of gravel and sand may indicate wellbore instability. Increase properties up to a YP of —50 - —60 lbs/100ft2 to combat this issue. Maintain low flow rates for the initial 200' of drilling to reduce the likelihood of washing out the conductor shoe. To help insure good cement to surface after running the casing, condition the mud to a YP of 25 — 30 prior to cement operations. Do not lower the YP beyond 25 to avoid trouble with sands that may be found on this well. Have Desco DF, SAPP, and water on hand to ensure the desired rheology's can be achieved. H2S: H2S is not present in this hole section. No abnormal pressures or temperatures are present in this hole section. Page 50 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp snaw COMM" 9-7/8" Hole Section: Lost Circulation: Ensure adequate amounts of LCM are available. Safe-carb 10, 20, 40, 250, & 750. Ensure G-seal, Pecan nut plug, and Mix II are also available for more severe lost returns incidents. Monitor fluid volumes to detect any early signs of lost circulation. Background concentrations of LCM (sized calcium carbonate) should be between 5 — 10 ppb while drilling this interval. There is a high probability of lost returns through the many stacked, depleted sands in this hole section. Hole Cleaning: Maintain rheology w/ flowzan. Sweep hole w/ 20 bbls hi-vis pills as necessary. Optimize solids control equipment to maintain density and minimize sand content. Maintain YP between 20 - 30 to optimize hole cleaning and control ECD. Wellbore stability: Maintain Ippb total of PolyPac Supreme UL to maintain a thin/strong wall cake and keep HTHP filtrate below 9 ml/30 min. Maintain MW as necessary using additions of Barite. Maintain 6 ppb EMI-2009 for shale/clay inhibition. Maintain 4 ppb Asphasol Supreme & 3 ppb Sack Black for Shale/Coal stabilizer. Maintain 6% KCl in system for shale inhibition. Coal Drilling: The following lessons were learned from extensive experience drilling coal seams in Cook Inlet. The need for good planning and drilling practices is also emphasized as a key component for success. • Keep the drill pipe in tension to prevent a whipping effect which can disturb coal sections. • Use asphalt -type additives to further stabilize coal seams (Asphasol Supreme, Sack Black). • Increase fluid density as required to control a "running coal". • Emphasize good hole cleaning through hydraulics, ROP and system rheology. In the event that sloughing coal is encountered, consider spotting a 30 ppb Asphasol Supreme pill across the coal seam. The pill can be safely "squeezed" into the coal by closing the bag and applying pressure not to exceed the total annular pressure loss. H2S: H2S is not present in this hole section. ' No abnormal temperatures are present in this hole section. f Page 51 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Czj 6-3/4" Hole Section: Lost Circulation: Ensure adequate amounts of LCM are available. Safe-carb 10, 20, 40, 250, & 750. Ensure G-seal, Pecan nut plug, and Mix II are also available for more severe lost returns incidents. Monitor fluid volumes to detect any early signs of lost circulation. For minor seepage losses, consider adding small amounts of Safe-carb 10 & 20 to the active system at 1 — 2 ppb. Hole Cleaning: Maintain rheology w/ flowzan. Sweep hole w/ 20 bbls hi-vis pills as necessary. Optimize solids control equipment to maintain density and minimize sand content. Maintain YP btwn 20 - 30 to optimize hole cleaning and control ECD. Wellbore stability: Wellbore stability products will be limited for the production hole section. We want to avoid using Sack Black, Asphasol Supreme, resinex, and any of the Conqor products as they can have a negative effect on the reservoir. If additional products are required to stabilize the borehole, consult with Drilling Engineer prior to adding to active mud system. H2S: 1-12S is not present in this hole section. No abnormal temperatures are present in this hole section. Page 52 Revision 1 Feb, 2014 WTI i no f:• I ill WHV. 4/1D PUNO H . `r--IIE 11-0 1i1 IT, ��� IIIEiililllll ICI ill glilllll - a tllfiltli IIII AM ttIII111I1111r��I1111i �I I I I I I I I (l I I� KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 29.0 FIT Procedure Formation Integrity Test (FIT) and Leak -Off Test (LOT) Procedures Procedure for FIT: 1. Drill 20' of new formation below the casing shoe (this does not include rat hole below the shoe). 2. Circulate the hole to establish a uniform mud density throughout the system. P/U into the shoe. 3. Close the blowout preventer (ram or annular). 4. Pump down the drill stem at 1/4 to 1/2 bpm. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) vs. drill pipe pressure until appropriate surface pressure is achieved for FIT at shoe. 6. Shut down at required surface pressure. Hold for a minimum 10 minutes or until the pressure stabilizes. Record time vs. pressure in 1-minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. The pre -determined surface pressure for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measures are required. Where required, the LOT is performed in the same fashion as the formation integrity test. Instead of stopping at a pre -determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with an FIT. Page 54 Revision 1 Feb, 2014 F KBU 22-32 Drilling & Completion Procedure 30.0 Choke Manifold Schematic a ti e /;r► �A 1� 0 e �t� 47 _(,lrr(• Y ai��is 6 It DIY Page 55 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure 31.0 Casing Design Information Calculation & Casing Design Factors Kenai Beluga Unit DATE: 3.3-2014 WELL: KBU 22-32 FIELD: Kenai Gas Field DESIGN BY:Luke Keller Design Criteria: Hole Size 9.7/8" Mud Density: 9.5 ppg Hole Size 6-314" Mud Density: 10.5 ppg Hole Size Mud Density: Drilling Mode MASP(sec 1): 1303 psi (see attached MASP determination & calculation) MASP: 1623 psi (see attached MASP determination & calculation) Production Mode MASP (Sec 2,3,4): 3007 psi (see attached MASP determination & calculation) Collapse Calculation: Section Calculation 1, 2, 3 Max MW gradient external stress and the casing evacuated for the internal stress Cas ng Section Calculation/Specification 1 1 2 3 Casing OD 10-3/4" 7-5/8" 5" To (MD) 0 0 0 Top (TVD) 0 0 0 Bottom MD 1,600 6,100 10,944 Bottom (TVD) 1,558 5,571 9.890 Length 1,600 6,100 10,944 Weight 45.5 29.7 18 Grade L-80 L-80 L-80 Connection BTC BTC DWC/C HT Weight w/o Bou)2ncy Factor lbs 72,800 181.170 196,992 Tension at Top of Section Qbs) 72,800 378.162 196,992 Min strength Tension 1000 lbs 1040 683 457 Worst Case Safety Factor Tension 14.29 1.81 2.32 Colla se Pressure at bottom Psi 810 2,897 5.143 Collapse Resistance w/o tension (Psi) 2,480 4,790 10,500 Worst Case Safety Factor (Collapse) 3.06 1.65 2.04 MASP si 1,303 3,007 3,007 Minimum Yield(psi) 5,210 6,890 9,910 Worst case safety factor Burst 4.00 2.29 3.30 Page 56 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure HilmTEn«W comn�r 32.0 9-7/8" Hole Section MASP Maximum Anticipated Surface Pressure Calculation ti lco�rp 9-7/8" Hole Section KBU 22-32 Ninilchik Unit MD TVD Planned Top: 1600 1558 Planned TD: 6100 5571 Anticipated Formations and Pressures: Formation TVD Est Pressure Oil/Gas/Wet PPG Grad Sterling 3,738 250 Gas 1.3 0.067 Sterling 5.2 4,341 1500 Gas 6.6 0.346 Upper Beluga 4,878 900 Gas 3.5 0.185 Offset Well Mud Densities Well MW range Top (TVD) Bottom (TVD) Date KDU 5 9.2 - 9.4 2,397 6,012 1978 KU 14.32 9 - 9.6 1,860 4,897 1982 KU 22-06X 8.9 - 9.2 1,682 4,989 2008 Assumptions: 1. Fracture gradient at shoe is estimated at 0.936 psi / ft based on field test data. 2. Maximum planned mud density for the 9.7/8" hole section is 9.5 ppg. 3. Calculations assume "Unknown" reservoir contains 100% gas (worst case). 4. Calculations assume worst case event is 2/3 evacuation of wellbore to gas. Remaining 1/3 volume in wellbore remains drilling fluid density. Fracture Pressure at 10-3/4" shoe considering a full column of gas from shoe to surface: 1558 (ft) x 0.936(psi/ft)= 1458 psi 1458(psi) - (0.1(psi/ft)`1558(ft))- f 1303 psi MASP from pore pressure (unknown gas sand at TD, at 9.2 ppg (0.4784 psi/ft) 5,571(ft) x 0.4784(psi/ft)= 2665 psi 2665(psi) - ((2/3)*O.1(psi/ft)`5,571(ft))-((1/3)*0.494(psi/ft)'S,571(ft))= 1377 psi Summary: 1. MASP while drilling 9-7/8" intermediate hole is governed by fracture gradient at the 10-3/4" casing shoe Page 57 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 33.0 6-3/4" Hole Section MASP Maximum Anticipated Surface Pressure Calculation 1i4 6-3/4" Hole Section F "'I KBU 22-32 Cook Inlet, Alaska MD TVD Planned Top: 6,100' 5,571' Planned TD: 10,944' 9,890" Anticipated Formations and Pressures: Formation TVD Est Pressure Oil/Gas/Wet PPG Grad Middle Beluga 5,481 1000 Gas 3.5 0.182 Lower Beluga 6,306 1000 Gas 3.0 0.159 Upper Tyonek 7,412 2500 Gas 6.5 0.337 Tyonek D2 9,155 3700 Gas 7.8 0.404 Offset Well Mud Densities Well Max Drlg MW Top (TVD) Bottom (TVD) Date KDU 5 9.2 -9.4 2,397 6,012 1978 Assumptions: 1. Fracture gradient at 6,100' MD / 5,571' TVD is estimated at 0.936 psi / ft based on field test data. 2. Maximum planned mud density for the 9-7/8" hole section is 10.5 ppg. 3. Calculations assume "Tyonek D2" reservoir contains 100% gas (worst case). 4. Calculations assume worst case event is 2/3 evacuation of wellbore to gas. Remaining 1/3 volume in wellbore remains drilling fluid density. Fracture Pressure at 7-5/8" shoe considering a full column of gas from shoe to surface: 5,571 (ft) x 0.936(psi/ft)= 5214 psi 5,214 (psi) - [0.1(psi/ft)'5,571(ft))= F 4657 psi Drilling Mode MASP MASP from pore pressure (2/3 wellbore evacuated to gas from Tyonek 02) 9,890(ft) x 0.404(psi/ft)= 3996 psi 3,996(psi) - [(0.1(psi/ft)•9,890(ft)`2/3)+[0.52(psi/ft)°9,890(ft)`1/3))= 1623 psi Production Mode MASP Sri. MASP from pore pressure (entire wellbore evacuated to gas from unknown reservoir at TD): ,® Z>5- 9,890(ft) x 0.404(psVft)= 3996 psi 3,996(psi) - [0.1(psi/ft)`9,890(ft)J= 3007 psi Page 58 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Finer Company 34.0 Spider Plot (NAD 27) (Governmental Sections) KU 21X-32 t3Kk t ou 21.24 stet o `e \ i 031M A028055" S005N011W,,' f,. KBU 22-32 SH]an.. w. r KENAI U Kr..na, x F t-diNd, u%34 ; �KBI122-32 I -Pi i l ,.» Ktt3lt 3t'BHko Kit 34'�32 BHL4` KU -06 BHC• �` KU 21 08Ri1,@14co KU21 SHtV .,*4 KBU41•6SHL4? Legend • KBU 22-32 SHL KU 22.6X B-WO t3 FEE A028142 X KBU 22.32 TPH S004NO12W S004NO11 W K$U 22*, 13�LV ^ KBu 22-32 BHL _ _ 3 Hitcm OG Mineral Ovrnersh p r - * Other Surface Well Locations ! Other Bottom Hoto Locations f WeB Paths m © We4 Pad 08 23X-wit} _ KU 43-06RC , il t/ KfU 43 �" Oil and Gas unit Boundary r' .'81 33-MBHL , OlN Ki3i.J 22V32 tip it. Kenai Unit KBU 22-32 IM—P a -t.f. I r Page 59 Revision 1 0 1,000 2.000 Feet Alaska State Piano Zone 4. NAD27 Map Date: 2a82014 Feb, 2014 KBU 22-32 Drilling & Completion Procedure HilmTEnergy Company 35.0 Surface Plat (As Built) (NAD 27) s To F 'CAUTION F' Crtnats f,n WA'M L t CA%RR EtCY 59IC :J.2Ln4L. rA5 r T.YtLPii TO •y of "� er tx,Rttg3rr . / � R. ffNS Rid O E 1• i:i4-_`*✓ �`• +w : �ii sra4�> 88V �SL 1 Y �� KU CT6 C.jboom nna1w r (1 1839' FEL (NTS) ht f.DfJ eL P''rrr.»ssxuzp \ E.Srt/l351na KM ",.V KBU 22-32 NaxmxrxTu :•_•TR AS STAKED LOCATION e NAD 27 ASP Z4 N: 2368234.000 23R0.•I Z7•' E: 270790,100 uT1s ✓ LAT:60'28'34.741'N w LON: 151'1&13.680"W % ELEV: 59.00' (NAVD88) 1839'FEL —� 881' FSL (NTS) ti rj 2M 1�1 TL 1N M OF A4,1 �r49 .......-ri * 00 ' ... 00 / op d I.M. SCOTT MCLANE � r I� 4928—S SCALE !''•. .. if � �'cssla� �'••• 1b0 w:, i t1wt�`, FEET LINE I NOT TO 1 WASOFC00RDPUTESISU&C.408. TRISTAT" AUDRYINA&P 2{k� a. C'1AD 27) AVERAGE WSVERGEWE OF F OMS SHOFAK; 01'5.W 2, AUCRY GEC MM POSIM4 PER NGB: UT4{i`.F.Y%]:,A^ kONG 1$1'J"1:44WJ X•Mwsrs y-2' '04S42 3) 4E MAL DATUM 13 SAAM ") MJTOIEAS,Y 00R7wR 6, 31 F'CGMON PROM4CTED FRM SIAVEY TIES YOUOSI NG G40 TONh3i11P pDANfR fteOVM0 APO fASY114 AM MoNvue4T Y. S 71 gecowERED. L NILLCORP ALASKA. LLC �u f KBU 22.32 ON KGF PAD 34-31 F •. AS STAKED SURFACE LOCATION NAD 27 -»�«Rravaewwc•�w«�.wu.assr� xraraw l4• :en s»1 1104-tlrp Ahs-ku. 1.11, S31 TSN R11W SEWARD MERIDIAN, ALASKA ebM. RaN:LASCCNC:•1�G}LCM Page 60 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Enew COMWY 36.0 Offset MW vs TVD Chart MW vs ND Offsets Page 61 Revision 1 Feb, 2014 KBU 22-32 Drilling & Completion Procedure Hilcorp Energy Company 37.0 Drill Pipe Information SIZE: 4 1 /2r1, pY COMMAMO I0gy SI11VICIS WEIGHT- S-135BS,FT RANGE: If t31.51 DRILL PIPE SPECS CONNECTION: CDS40 TUBE NEW PREMIUM IN MM IN MM OD 4.500 1 14,3 4,365 1 10.9 WALL THICKNESS 0.337 8.6 1 0.270 6.8 ID 3.826 97,21 3.826 97.2 Fro Bs N-M FT-LBS N-M TORSIONAL. STRENGTH 55,453 75.200 43.451 58.900 80% TORSIONAL STRENGTH 44.362 60.200 : 34.761 47.100 L.BS DAN LBS DAN TENSILE STRENGTH 595,004 265,300 468,297 208,800 f PSI KPA PSI KPA INTERNAL PRESSURE CAPACITY 17,693 121.985 16,176 1 1 1, 530 COLLAPSE CAPACITY 16,769 1 15,615 10,959 75,561 INS MM, IN2 MM2 CROSS SECTIONAL AREA BODY 4.407 28441 3,469 2238 CROSS SECTIONAL AREA OD 15.904 10261 14.966 9655 CROSS SECTIONAL AREA ID 11,497 7417 11.497 7417 IN3 MM' IN3 MMa SECTION MODULUS 4.271 69995 3.347 54845 POLAR SECTION MODULUS 8.543 139989 6.694 109690 TOOL JOINT NEW REMIUM PSI KPA PSI KPA YIELD STRENGTH 130,000 896.318 130.000 896,318 IN MM IN MM CID 5.2500 133.4 5,1198 130.0 ID 2.6875 68.3 2,6875 68.3 PIN LENGTH 11.0 279.4 11,0 279A BOX LENGTH 14.0 355.6 14,0 355,E FTA.SS N-m FT-LBS N M TORSIONAL STRENGTH 35.400 48.000 34.700 47.100 MAX MAKEUP TORQUE 22.500 30500 21.400 29.000 RECOMMENDED MAKE -Up TORQUE 21.200 28.800 • 20.800 28.200 MIN MAKE-UP TORQUE 19.600 26.600 19.300 26.200 LOS DAN L.BS DAN TENSILE STRENGTH 824,400 367.600 804.900 358.900 TOOL JOINT/DRILL PIPE TORSIONAL RATIO 0.64 0.80 DRILL PIPE ASSEMBLY WITH CONNECTION LBS/FT KG/M ADJUSTED WEIGHT 17.87 26,64 FT M APPROXIMATE LENGTH 31.50 9.60 GAL/FT M3/M FLUID DISPLACEMENT 0,273 0,003394 FLUID CAPACITY 0.577 0.007169 IN MM DRIFT slzE 2.5625 65 Page 62 Revision 1 Feb, 2014 Hilcorp Enapy Company KBU 22-32 Drilling & Completion Procedure COMBINED LOAD CURVE FOR 4 1 /2" & 135 16.6 Les/FT DRILL PIPE wrrH CDS40 CONNECTIONS 900.000 E 800,000 } 700,000 6K000 am Qft oft I 1 a 500,000## AM1 F••######## 444 C. 400,000 # #. ## E • 300.000 # 2CO,OCO # # 100,000 p? 0 10.000 20,000 30.000 40,000 50,000 60.000 Applied Torque(ftdbs) NEw Tunr COMBINED LOAD .... PREmium Tuar COMQINED LOAD - MAKE-UP TORQUE �-- SHOULDER SEPERATION ^-- PIN YIELD - BOX YIELD Page 63 Revision 1 Feb, 2014 Hilcorp Alaska, LLC Kenai Beluga Unit KBU 22-32 Attachments to Drilling & Completion Program Hilcorp Energy Company Kenai Gas Field KGF 34-31 Pad Plan: KBU 22-32 KBU 22-32 Plan: KBU 22-32 WP2.0 Standard Proposal Report 13 March, 2014 HALLIBURTON Sperry Drilling Services HALLIBURT©N -600 SHL Lgl Coords: 87ts FSL 1846' FEL Sec 31 T51N R11 W SM AK Sperry [rutting �" 0 Start Dir 21/100' : 250' MD, 250'TVD EM - 600 - - - - - - - - - - - Start Dir 3°/100' : 650' MD, 648.7'TVD CASING DETAILS 1200 ------------End Dir :1261.78'MD,1230.7'TVD TVD MD Name Size 1551.69 1620.00 10 3/4" 10-3/4 _ - 5834.92 6400.00 7 5/8" 7-5/8 10 3/4" 9877.60 10911.54 5" 5 1800 WELL DETAILS: Plan: KBU 22-32 Ground Level: 59.00 +N/-S +E/-W Northing Easting Latittude Longitude Slot 2400 0.00 0.00 2368234.00 270790,10 60.4763170-151.2704667 SECTION DETAILS 3000 Sec MD Inc Azi TVD +N/-S +E/-W Dleg TFace VSect Target 1 18.60 0.00 0.00 18.60 0.00 0.00 0.00 0.00 0.00 2 250.00 0.00 0.00 250.00 0.00 0.00 0.00 0.00 0.00 3 650.00 8.00 61.38 648.70 13.35 24.47 2.00 61.38 27.88 3600 4 1261.78 26.35 61.38 1230.70 99.53 182.39 3.00 0.00 207.78 5 10911.55 26.35 61.38 9877.60 2151.55 3942.48 0.00 0.00 4491.36 KBU 22-32 BHL Tgt c 4200 SURVEY PROGRAM Date: 2014-03-13T00:00:00 Validated: Yes Version: o Depth From Depth To Survey/Plan Tool cq 4800 18.60 1620.00 KBU 22-32 WP2.0 (KBU 22-32) NSG-GYC_WL 1620.00 6400.00 KBU 22-32 WP2.0 (KBU 22-32) MWD+SC+sag y 6400.00 10911.55 KBU 22-32 WP2.0 (KBU 22-32) MWD+SC+sag a a) 5400- Project: Kenai Gas Field Site: KGF 34-31 Pad 7 5/8 - _ - - _ Well: Plan: KBU 22-32 6000 Wellbore: KBU 32 KBU 22-32 WP2.0 6600 7200 7800 8400 Hilcorp Energy Company Calculation Method: Minimum Curvature Error System: ISCWSA Scan Method: Closest Approach 31) 9000 Error Surface: Elliptical Conic Warning Method: Error Ratio FORMATION TOP DETAILS 9600 No formation data is available 10200 REFERENCE INFORMATION Co-ordinate (N/E) Reference: Well Plan: KBU 22-32, True North Vertical (TVD) Reference: KBU 22-32 As -Staked @ 77.60usft (59.0'GL+18.6'Rig) Measured Depth Reference: KBU 22-32 As -Staked @ 77.60usft (59.0'GL+18.6'Rig) Calculation Method: Minimum Curvature 10800 Total Depth : 10911.55' MD, 9877.6' TVD 5"--- KBU 22-32 WP2.0 BHL Lgl Coords: 2251' FNL 2102' FWL Sec 32 T5N R11 W SM AK -600 0 600 1200 1800 2400 3000 3600 4200 4800 5400 6000 6600 7200 7800 Vertical Section at 61.38° (1200 usfUin) 'c a Eo my W n�N� O C C O O E 8 Q C Z ?W(nW E a O U M J F W ❑ N Dlb a Z N LL I N N O �i N U mN (U NW LL Y N �oo� YY0 N N O fr O V rN� O d •� O� 'o Q IL M N O �rnto v. >viaMom I I 0 F m N O O W O O I ooMoo LL O O� 0 0 F- m00000 ro 00000 J Q >>OOrm00 F > O O Q M V W W o O N NN NN 0 + c rn z M 0 0 (n oOcM u) U OOMNIt? Uw Z o o ro N p OoOoo (oorrco �OD NV Mr N N ' m N O O W m N QOOMC)(") OO--� 00 O U O O O — C O O O M M Oo W t0O N N 0000.0 2000nn N 0 m 0 O N n W CA y N � N N ' o � 1 7 F' � I I N - � M N N N i i V 3 V o . u ¢� N N v a', n00 �i cz cz O u U �". U aS u p a o � w o Q Q) !� u co 3 c (I rn ° o .Ei U 0 (u!/gsn OOS) (+)ylloN/(-)9lnoS rnrn EE b b c6 c6 J J 00 Z o o N V V O Nw n'16 Q YQQ� m cM MU m 5 aNNE Z -�D.- W 2i Y 2 U Z W Lx W LL pC U c K� amid 'rwdo ��o W � Y zo�g 0 J j N U U>2U 0 v J p1 p1 p UUU (b❑O n � 32 0 FZM: N v fA } N N N � M co Cl) N N N 0 N N N p V O YYYK a Ooo o C14 p W asN >N O C > > > M M j N N N y N N N M Z o d (AYYY 0 N F O O n N L O O � O ❑ � (O V T ❑.-c00 M OO pfOD W co N O O N ❑ O o N 0 N 3 0 cz � Q � Cl,cz N QJ O ?v m J r. O 7v oj u m V �:! U d O d O p o 'v d o c cl CdoOQUo r� i L 0) K 7 a a �N, N lL aNNO MU- C Y M �m M C YY4 c, N N pp r n (D= NMN a J_ zoo Q 00 O 00 O 00 O OO O O N (um/gsn OOS) (+)9J1oN/(-)9;noS O N C m HALLIBURTON Database: Sperry EDM - NORTH US + CANADA Company: Hilcorp Energy Company Project: Kenai Gas Field Site: KGF 34-31 Pad Well: Plan: KBU 22-32 Wellbore: KBU 22-32 Design: KBU 22-32 WP2.0 Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Halliburton Standard Proposal Report Well Plan: KBU 22-32 ` KBU 22-32 As -Staked @ 77.60usft (59.0'GL+18.6'Rig; KBU 22-32 As -Staked @ 77.60usft (59.0'GL+18.6'Rig) True Minimum Curvature Project Kenai Gas Field 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 Using geodetic scale factor Site KGF 34-31 Pad Site Position: Northing: 2,367,747.62 usft Latitude: 60.4749588 From: Lat/Long Easting: 270,261.70 usft Longitude: -151.2733426 Position Uncertainty: 0.00 usft Slot Radius: 13-3/16" Grid Convergence: -1.11 ° Well Plan: KBU 22-32 Well Position +N/-S 0.00 usft Northing: 2,368,234.00 usft Latitude: 60.4763170 +EI-W 0.00 usft Easting: 270,790.10 usft , Longitude: -151.2704667 Position Uncertainty 0.00 usft Wellhead Elevation: 0.00 usft Ground Level: 59.00 usft Wellbore KBU 22-32 Magnetics Model Name Sample Date Declination Dip Angle Field Strength (°) (°) (nT) BGGM2013 5/30/2014 16.87 73.46 55,379 Design KBU 22-32 WP2.0 Audit Notes: Version: Phase: PLAN Tie On Depth: 18.60 Vertical Section: Depth From (TVD) +N/-S +E1-W Direction (usft) (usft) (usft) (I 18.60 0.00 0.00 61.38 Plan Sections Measured Vertical TVD Dogleg Build Turn Depth Inclination Azimuth Depth System +NI-S +E/-W Rate Rate Rate Tool Face (usft) (°) (°) (usft) usft (usft) (usft) (°/100usft) (°/100usft) (°I100usft) (°) 18.60 0.00 0.00 18.60 -59.00 0.00 0.00 0.00 0.00 0.00 0.00 250.00 0.00 0.00 250.00 172.40 0.00 0.00 0.00 0.00 0.00 0.00 650.00 8.00 61.38 648.70 571.10 13.35 24.47 2.00 2.00 0.00 61.38 1,261.78 26.35 61.38 1,230.70 1,153.10 99.53 182.39 3.00 3.00 0.00 0.00 10,911.55 - 26.35 61.38 9,877.60 9,800.00 2,151.55 3,942.48 0.00 0.00 0.00 0.00 311312014 6:16:03PM Page 2 COMPASS 5000.1 Build 70 Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Company: Hilcorp Energy Company TVD Reference: Project: Kenai Gas Field MD Reference: Site: KGF 34-31 Pad North Reference: Well: Plan: KBU 22-32 Survey Calculation Method: Wellbore: KBU 22-32 Design: KBU 22-32 WP2.0 Planned Survey Halliburton Standard Proposal Report Well Plan: KBU 22-32 KBU 22-32 As -Staked @ 77.60usft (59.0'GL+18.6'Rig) KBU 22-32 As -Staked @ 77.60usft (59.0'GL+18.6'Rig)'; True Minimum Curvature Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (usft) (°) (°) (usft) usft (usft) (usft) (usft) (usft) -59.00 18.60 0.00 0.00 18.60 -59.00 0.00 0.00 2,368,234.00 270,790.10 0.00 0.00 18.61 0.00 0.00 18.61 -58.99 0.00 0.00 2,368,234.00 270,790.10 0.00 0.00 SHL Lgl Coords: 878' FSL 1846' FEL Sec 31 T5N R11 W SM AK 100.00 0.00 0.00 100.00 22.40 0.00 0.00 2,368,234.00 270,790.10 0.00 0.00 200.00 0.00 0.00 200.00 122.40 0.00 0.00 2,368,234.00 270,790.10 0.00 0.00 250.00 0.00 0.00 250.00 172.40 0.00 0.00 2,368,234.00 270,790.10 0.00 0.00 Start Dir 2*/100' : 250' MD, 250'TVD 300.00 1.00 61.38 300.00 222.40 0.21 0.38 2,368,234.20 270,790.49 2.00 0.44 400.00 3.00 61.38 399.93 322.33 1.88 3.45 2,368,235.81 270,793.58 2.00 3.93 500.00 5.00 61.38 499.68 422.08 5.22 9.57 2,368,239.04 270,799.77 2.00 10.90 600.00 7.00 61.38 599.13 521.53 10.23 18.74 2,368,243.86 270,809.04 2.00 21.35 650.00 8.00 61.38 648.70 571.10 13.35 24.47 2,368,246.88 270,814.83 2.00 27.88 Start Dir 31/100' : 650' MD, 648.7'TVD 700.00 9.50 61.38 698.12 620.52 17.00 31.15 2,368,250.39 270,821.57 3.00 35.49 800.00 12.50 61.38 796.27 718.67 26.14 47.90 2,368,259.21 270,838.49 3.00 54.56 900.00 15.50 61.38 893.29 815.69 37.72 69.13 2,368,270.38 270,859.94 3.00 78.75 1,000.00 18.50 61.38 988.91 911.31 51.73 94.79 2,368,283.89 270,885.87 3.00 107.99 1,100.00 21.50 61.38 1,082.87 1,005.27 68.11 124.81 2,368,299.69 270,916.20 3.00 142.19 1,200.00 24.50 61.38 1,174.91 1,097.31 86.83 159.11 2,368,317.74 270,950.84 3.00 181.25 1,261.78 26.35 61.38 1,230.70 1,153.10 99.53 182.39 2,368,329.99 270,974.37 3.00 207.78 End Dir : 1261.78' MD, 1230.7' TVD 1,300.00 26.35 61.38 1,264.95 1,187.35 107.66 197.28 2,368,337.83 270,989.41 0.00 224.75 1,400.00 26.35 61.38 1,354.55 1,276.95 128.92 236.25 2,368,358.34 271,028.78 0.00 269.14 1,500.00 26.35 61.38 1,444.16 1,366.56 150.19 275.21 2,368,378.85 271,068.15 0.00 313.53 1,600.00 26.35 61.38 1,533.77 1,456.17 171.45 314.18 2,368,399.35 271,107.51 0.00 357.92 1,620.00 26.35 61.38 1,551.69 1,474.09 175.71 321.97 2,368,403.46 271,115.39 0.00 366.79 10 314" 1,700.00 26.35 61.38 1,623.38 1,545.78 192.72 353.14 2,368,419.86 271,146.88 0.00 402.31 1,800.00 26.35 61.38 1,712.98 1,635.38 213.98 392.11 2,368,440.37 271,186.25 0.00 446.70 1,900.00 26.35 61.38 1,802.59 1,724.99 235.25 431.07 2,368,460.88 271,225.62 0.00 491.09 2,000.00 26.35 61.38 1,892.20 1,814.60 256.51 470.04 2,368,481.39 271,264.98 0.00 535.48 2,100.00 26.35 61.38 1,981.81 1,904.21 277.78 509.01 2,368,501.90 271,304.35 0.00 579.87 2,200.00 26.35 61.38 2,071.41 1,993.81 299.04 547.97 2,368,522.40 271,343.72 0.00 624.26 2,300.00 26.35 61.38 2,161.02 2,083.42 320.31 586.94 2,368,542.91 271,383.08 0.00 668.65 2,400.00 26.35 61.38 2,250.63 2,173.03 341.57 625.90 2,368,563.42 271,422.45 0.00 713.04 2,500.00 26.35 61.38 2,340.24 2,262.64 362.84 664.87 2,368,583.93 271,461.82 0.00 757.43 2,600.00 26.35 61.38 2,429.84 2,352.24 384.10 703.83 2,368,604.44 271,501.19 0.00 801.82 2,700.00 26.35 61.38 2,519.45 2,441.85 405.37 742.80 2,368,624.95 271,540.55 0.00 846.21 2,800.00 26.35 61.38 2,609.06 2,531.46 426.63 781.77 2,368,645.45 271,579.92 0.00 890.60 2,900.00 26.35 61.38 2,698.67 2,621.07 447.90 820.73 2,368,665.96 271,619.29 0.00 934.99 3,000.00 26.35 61.38 2,788.27 2,710.67 469.16 859.70 2,368,686.47 271,658.65 0.00 979.38 3,100.00 26.35 61.38 2,877.88 2,800.28 490.43 898.66 2,368,706.98 271,698.02 0.00 1,023.77 3,200.00 26.35 61.38 2,967.49 2,889.89 511.69 937.63 2,368,727.49 271,737.39 0.00 1,068.17 3,300.00 26.35 61.38 3,057.09 2,979.49 532.96 976.59 2,368,748.00 271,776.76 0.00 1,112.56 3,400.00 26.35 61.38 3,146.70 3,069.10 554.22 1,015.56 2,368,768.50 271,816.12 0.00 1,156.95 311312014 6:16:03PM Page 3 COMPASS 5000.1 Build 70 A �r ,-,�, Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Company: Hilcorp Energy Company TVD Reference: Project: Kenai Gas Field MD Reference: Site: KGF 34-31 Pad North Reference: Well: Plan: KBU 22-32 Survey Calculation Method: Wellbore: KBU 22-32 Design: KBU 22-32 WP2.0 Halliburton Standard Proposal Report Well Plan: KBU 22-32 KBU 22-32 As -Staked @ 77.60usft (59.0'GL+18.6'Rig) KBU 22-32 As -Staked @ 77.60usft (59.0'GL+18.6'Rig) True Minimum Curvature Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (usft) (1) V) (usft) usft (usft) (usft) (usft) (usft) 3,158.71 3,500.00 26.35 61.38 3,236.31 3,158.71 575.49 1,054.52 2,368,789.01 271,855.49 0.00 1,201.34 3,600.00 26.35 61.38 3,325.92 3,248.32 596.75 1,093.49 2,368,809.52 271,894.86 0.00 1,245.73 3,700.00 26.35 61.38 3,415.52 3,337.92 618.02 1,132.46 2,368,830.03 271,934.22 0.00 1,290.12 3,800.00 26.35 61.38 3,505.13 3,427.53 639.28 1,171.42 2,368,850.54 271,973.59 0.00 1,334.51 3,900.00 26.35 61.38 3.594.74 3,517.14 660.55 1,210.39 2,368,871.05 272,012.96 0.00 1,378.90 4,000.00 26.35 61.38 3,684.35 3,606.75 681.81 1,249.35 2.368,891.55 272,052.33 0.00 1,423.29 4,100.00 26.35 61.38 3,773.95 3,696.35 703.08 1,288.32 2,368,912.06 272,091.69 0.00 1,467.68 4,200.00 26.35 61.38 3,863.56 3,785.96 724.34 1,327.28 2,368,932.57 272,131.06 0.00 1,512.07 4,300.00 26.35 61.38 3,953.17 3,875.57 745.61 1,366.25 2,368,953.08 272,170.43 0.00 1,556.46 4,400.00 26.35 61.38 4,042.78 3,965.18 766.87 1,405.22 2,368,973.59 272,209.79 0.00 1,600.85 4,500.00 26.35 61.38 4,132.38 4,054.78 788.14 1,444.18 2,368,994.10 272,249.16 0.00 1,645.24 4,600.00 26.35 61.38 4,221.99 4,144.39 809.40 1,483.15 2,369,014.60 272,288.53 0.00 1,689.63 4,700.00 26.35 61.38 4,311.60 4,234.00 830.67 1,522.11 2,369,035.11 272,327.89 0.00 1,734.02 4,800.00 26.35 61.38 4,401.21 4,323.61 851.93 1,561.08 2,369,055.62 272,367.26 0.00 1,778.41 4,900.00 26.35 61.38 4,490.81 4,413.21 873.20 1,600.04 2,369,076.13 272,406.63 0.00 1,822.80 5,000.00 26.35 61.38 4,580.42 4,502.82 894.46 1,639.01 2,369,096.64 272,446.00 0.00 1,867.20 5,100.00 26.35 61.38 4,670.03 4,592.43 915.73 1,677.98 2,369,117.15 272,485.36 0.00 1,911.59 5,200.00 26.35 61.38 4,759.63 4,682.03 936.99 1,716.94 2,369,137.66 272,524.73 0.00 1,955.98 5,300.00 - 26.35 61.38 4,849.24 4,771.64 958.26 1,755.91 2,369,158.16 272,564.10 0.00 2,000.37 5,400.00 26.35 61.38 4,938.85 4,861.25 979.52 1,794.87 2,369,178.67 272,603.46 0.00 2,044:76 5,500.00 26.35 61.38 5,028.46 4,950.86 1,000.79 1,833.84 2,369,199.18 272,642.83 0.00 2,089.15 5,600.00 26.35 61.38 5,118.06 5,040.46 1,022.05 1,872.80 2,369,219.69 272,682.20 0.00 2,133.54 5,700.00 26.35 61.38 5,207.67 5,130.07 1,043.32 1,911.77 2,369,240.20 272,721.57 0.00 2,177.93 5,800.00 26.35 61.38 5,297.28 5,219.68 1,064.58 1,950.73 2,369,260.71 272,760.93 0.00 2,222.32 5.900.00 26.35 61.38 5,386.89 5,309.29 1,085.85 1,989.70 2,369,281.21 272,800.30 0.00 2,266.71 6.000.00 26.35 61.38 5.476.49 5,398.89 1,107.11 2,028.67 2,369,301.72 272,839.67 0.00 2,311.10 6,100.00 26.35 61.38 5,566.10 5,488.50 1,128.38 2,067.63 2,369,322.23 272,879.03 0.00 2,355.49 6,200.00 26.35 61.38 5,655.71 5,578.11 1,149.64 2,106.60 2,369,342.74 272,918.40 0.00 2,399.88 6,300.00 26.35 61.38 5,745.32 5,667.72 1,170.91 2,145.56 2,369,363.25 272,957.77 0.00 2,444.27 6,400.00 26.35 61.38 5,834.92 5,757.32 1,192.17 2,184.53 2,369,383.76 272,997.14 0.00 2,488.66 7 5/8" 6,500.00 26.35 61.38 5,924.53 5,846.93 1,213.44 2,223.49 2,369,404.26 273,036.50 0.00 2,533.05 6,600.00 26.35 61.38 6,014.14 5,936.54 1,234.70 2,262.46 2,369,424.77 273,075.87 0.00 2,577.44 6,700.00 26.35 61.38 6,103.75 6,026.15 1,255.97 2,301.43 2,369,445.28 273,115.24 0.00 2,621.83 6,800.00 26.35 61.38 6,193.35 6,115.75 1,277.23 2,340.39 2,369,465.79 273,154.60 0.00 2,666.22 6,900.00 26.35 61.38 6,282.96 6,205.36 1,298.50 2,379.36 2,369,486.30 273,193.97 0.00 2,710.62 7,000.00 26.35 61.38 6,372.57 6,294.97 1,319.76 2,418.32 2,369,506.81 273,233.34 0.00 2,755.01 7,100.00 26.35 61.38 6,462.17 6,384.57 1,341.03 2,457.29 2,369,527.31 273,272.71 0.00 2,799.40 7,200.00 26.35 61.38 6,551.78 6,474.18 1,362.29 2,496.25 2,369,547.82 273,312.07 0.00 2,843.79 7,300.00 26.35 61.38 6,641.39 6,563.79 1,383.56 2,535.22 2,369,568.33 273,351.44 0.00 2,888.18 7,400.00 26.35 61.38 6,731.00 6,653.40 1,404.82 2,574.18 2,369,588.84 273,390.81 0.00 2,932.57 7,500.00 26.35 61.38 6,820.60 6,743.00 1,426.09 2,613.15 2,369,609.35 273,430.17 0.00 2,976.96 7,600.00 26.35 61.38 6,910.21 6,832.61 1,447.35 2,652.12 2,369,629.86 273,469.54 0.00 3,021.35 7,700.00 26.35 61.38 6,999.82 6,922.22 1,468.62 2,691.08 2,369,650.36 273,508.91 0.00 3,065.74 7,800.00 26.35 61.38 7,089.43 7,011.83 1,489.88 2,730.05 2,369,670.87 273,548.27 0.00 3,110.13 311312014 6:16:03PM Page 4 COMPASS 5000.1 Build 70 Database: Sperry EDM - NORTH US + CANADA Company: Hilcorp Energy Company Project: Kenai Gas Field Site: KGF 34-31 Pad Well: Plan: KBU 22-32 Wellbore: KBU 22-32 Design: KBU 22-32 WP2.0 Planned Survey Halliburton Standard Proposal Report Local Co-ordinate Reference: Well Plan: KBU 22-32 TVD Reference: KBU 22-32 As -Staked @ 77.60usft (59.0'GL+ 1 8.6'Rig) MD Reference: KBU 22-32 As -Staked @ 77.60usft (59.0'GL+ 1 8.6'Rig) North Reference: True Survey Calculation Method: Minimum Curvature Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +EI-W Northing Easting DLS Vert Section (usft) (1) (1) (usft) usft (usft) (usft) (usft) (usft) 7,101.43 7,900.00 26.35 61.38 7,179.03 7,101.43 1,511.15 2,769.01 2,369,691.38 273,587.64 0.00 3,154.52 8,000.00 26.35 61.38 7,268.64 7,191.04 1,532.41 2,807.98 2,369,711.89 273,627.01 0.00 3,198.91 8,100.00 26.35 61.38 7,358.25 7,280.65 1,553.68 2,846.94 2,369,732.40 273,666.38 0.00 3,243.30 8,200.00 26.35 61.38 7,447.86 7,370.26 1,574.94 2,885.91 2,369,752.91 273,705.74 0.00 3,287.69 8,300.00 26.35 61.38 7,537.46 7,459.86 1,596.21 2,924.88 2,369,773.41 273,745.11 0.00 3,332.08 8,400.00 26.35 61.38 7,627.07 7,549.47 1,617.47 2,963.84 2,369,793.92 273,784.48 0.00 3,376.47 8,500.00 26.35 61.38 7,716.68 7,639.08 1,638.74 3,002.81 2,369,814.43 273,823.84 0.00 3,420.86 8,600.00 26.35 61.38 7,806.29 7,728.69 1,660.00 3,041.77 2,369,834.94 273,863.21 0.00 3,465.25 8,700.00 26.35 61.38 7,895.89 7,818.29 1,681.27 3,080.74 2,369,855.45 273,902.58 0.00 3,509.65 8,800.00 26.35 61.38 7,985.50 7,907.90 1,702.53 3,119.70 2,369,875.96 273,941.95 0.00 3,554.04 8,900.00 26.35 61.38 8,075.11 7,997.51 1,723.80 3,158.67 2,369,896.46 273,981.31 0.00 3,598.43 9,000.00 26.35 61.38 8,164.71 8,087.11 1,745.06 3,197.63 2,369,916.97 274,020.68 0.00 3,642.82 9,100.00 26.35 61.38 8,254.32 8,176.72 1,766.33 3,236.60 2,369,937.48 274,060.05 0.00 3,687.21 9,200.00 26.35 61.38 8,343.93 8,266.33 1,787.59 3,275.57 2,369,957.99 274,099.41 0.00 3,731.60 9,300.00 26.35 61.38 8,433.54 8,355.94 1,808.86 3,314.53 2,369,978.50 274,138.78 0.00 3,775.99 9,400.00 26.35 61.38 8,523.14 8,445.54 1,830.12 3,353.50 2,369,999.01 274,178.15 0.00 3,820.38 9,500.00 26.35 61.38 8,612.75 8,535.15 1,851.39 3,392.46 2,370,019.52 274,217.52 0.00 3,864.77 9,600.00 26.35 61.38 8,702.36 8,624.76 1,872.65 3,431.43 2,370,040.02 274,256.88 0.00 3,909.16 9,700.00 26.35 61.38 8,791.97 8,714.37 1,893.92 3,470.39 2,370,060.53 274,296.25 0.00 3,953.55 9,800.00 26.35 61.38 8,881.57 C 8,803.97 1,915.18 3,509.36 2,370,081.04 274,335.62 0.00 3,997.94 9,900.00 26.35 61.38 8,971.18 8,893.58 1,936.45 3,548.33 2,370,101.55 274,374.98 0.00 4,042.33 10,000.00 26.35 61.38 9,060.79 8,983.19 1,957.71 3,587.29 2,370,122.06 274,414.35 0.00 4,086.72 10,100.00 26.35 61.38 9,150.40 9,072.80 1,978.98 3,626.26 2,370,142.57 274,453.72 0.00 4,131.11 10,200.00 26.35 61.38 9,240.00 9,162.40 2,000.24 3,665.22 2,370,163.07 274,493.09 0.00 4,175.50 10,300.00 26.35 61.38 9,329.61 9,252.01 2,021.51 3,704.19 2,370,183.58 274,532.45 0.00 4,219.89 10,400.00 26.35 61.38 9,419.22 9,341.62 2,042.77 3,743.15 2,370,204.09 274,571.82 0.00 4,264.28 10,500.00 26.35 61.38 9,508.83 9,431.23 2,064.04 3,782.12 2,370,224.60 274,611.19 0.00 4,308.67 10,600.00 26.35 61.38 9,598.43 9,520.83 2,085.30 3,821.08 2,370,245.11 274,650.55 0.00 4,353.07 10,700.00 26.35 61.38 9,688.04 9,610.44 2,106.57 3,860.05 2,370,265.62 274,689.92 0.00 4,397.46 10,800.00 26.35 61.38 9,777.65 9,700.05 2,127.83 3,899.02 2,370,286.12 274,729.29 0.00 4,441.85 10,900.00 26.35 61.38 9,867.25 9,789.65 2,149.10 3,937.98 2,370,306.63 274,768.65 0.00 4,486.24 10,911.54 26.35 61.38 9,877.60 9,800.00 2,151.55 3,942.48 2,370,309.00 274,773.20 0.00 4,491.36 BHL Lgl Coords: 2251' FNL 2102' FWL Sec 32 T5N R11W SM AK - Total Depth : 10911.55' MD, 9877.6' TVD - 5" 10,911.55 - 26.35 61.38 9,877.60 - 9,800.00 2,151.55 3,942.48 2,370,309.00 274,773.20 0.00 4,491.36 KBU 22-32 BHL Tgt Targets Target Name hit/miss target Dip Angle Dip Dir. TVD +N/-S +E/-W Northing Easting Shape (°) (°) (usft) (usft) (usft) (usft) (usft) KBU 22-32 BHL Tgt 0.00 0.00 9,377.60 2,151.55 3,942.48 2,370,309.00 274,773.20 plan hits target center Point 311312014 6:16:03PM Page 5 COMPASS 5000.1 Build 70 Database: Sperry EDM - NORTH US + CANADA Company: Hilcorp Energy Company Project: Kenai Gas Field Site: KGF 34-31 Pad Well: Plan: KBU 22-32 Wellbore: KBU 22-32 Design: KBU 22-32 WP2.0 Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Halliburton Standard Proposal Report Well Plan: KBU 22-32 KBU 22-32 As -Staked @ 77.60usft (59.0'GL+18.6'Rig; KBU 22-32 As -Staked @ 77.60usft (59.0'GL+18.6'Rig; True Minimum Curvature Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (usft) (usft) Name (") (") 1,620.00 1,551.69 10 3/4" 10-3/4 13-1/2 6,400.00 5,834.92 7 5/8" 7-5/8 9-7/8 10,911.54 9,877.60 5" 5 6-3/4 Plan Annotations Measured Vertical Local Coordinates Depth Depth +N/S +E/-W (usft) (usft) (usft) (usft) Comment 18.61 18.61 0.00 0.00 SHL Lgl Coords: 878' FSL 1846' FEL Sec 31 T5N R11 W SM AK 250.00 250.00 0.00 0.00 Start Dir 2*/100' : 250' MD, 250'TVD 650.00 648.70 13.35 24.47 Start Dir 31/100' : 650' MD, 648.7'TVD 1,261.78 1,230.70 99.53 182.39 End Dir : 1261.78' MD, 1230.7' TVD 10,911.54 9,877.60 2,151.55 3,942.48 BHL Lgl Coords: 2251' FNL 2102' FWL Sec 32 T5N R11 W SM AK 10,911.54 9,877.60 2,151.55 3,942.48 Total Depth : 10911.55' MD, 9877.6' TVD 311312014 6:16:03PM Page 6 COMPASS 5000.1 Build 70 I!! 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CI1'Tr JIB I LJX' 17 FOR APPROVAL LEll"FE � 'I lie hermit is For �1 new wellbore seL)ment of c;istinL, \ve11 Pcrn1il 1_A*l1-:R;AI_ No. AP1 No. 5O- - - (11 lasl wo diL1iS Prociticlioll should C01111MIC to hC I'lh01tCd as a 1UIlClIoil (ll 111C (1]l'lllal in Al'] number <uc API number staled abmc. betwecn-60-09) �� — -- -4 --- -- 25 In accordance with 20 AAAAC.005(11• all records. dala and lop acquired for the pilot hole must be clearly differentiated in both well Pilot Hole Name ( PH) and API number (50- - - - ) fi-om records, data and logs acquired for well (name on permit). The permit is approved subject to full compliance with 20 AAC 25.055. Approval to produce/inject is contingent upon issuance of a conservation Spacing Exception order approving a spacing exception. (Company Name) Operator assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the AOGCC must be in no greater Dry Ditch Sample than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this pen -nit: production or production testing of coal bed methane is not allowed for Non -Conventional (name of well) until after (Company Name) has designed and Well implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the AOGCC to obtain advance approval of such water well testing program. Regulation 20 AAC 25.071(a) authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by (Company Name) in the attached application, the following well logs are also required for this well: Well Logging Requirements Per Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 da s after com letion, suspension or abandonment of this well. Revised 5/2013 WELL PERMIT CHECKLIST Field & Pool KENAI, UP TYONEK BELUGA GAS - 448571 Well Name: KENAI BELUGA UNIT 22-32 Program DEV Well bore seg PTD#: 2140400 Company HILCORP ALASKA LLC Initial Class/Type DEV / PEND GeoArea 820 Unit 51120 On/Off Shore On Annular Disposal Administration 1 Permit fee attached NA 2 Lease number appropriate Yes Entire well in FEDA028055; Hilcorp is 100% W IO: Landowners: Hilcorp (60%), State (36%), BLM (4%). 3 Unique well name and number Yes 4 Well located in a defined pool Yes Beluga/ Upper Tyonek Gas Pool-448571, governed by Conservation Order No. 510 5 Well located proper distance from drilling unit boundary Yes CO 510, Rule 2: There shall be no restrictions as to well spacing except that no gas pay shall be opened 6 Well located proper distance from other wells Yes in any well which is closer than 1,500 feet to the unit boundaries. 7 Sufficient acreage available in drilling unit Yes 8 If deviated, is wellbore plat included Yes 9 Operator only affected party Yes 10 Operator has appropriate bond in force Yes 11 Permit can be issued without conservation order Yes Appr Date 12 Permit can be issued without administrative approval Yes 13 Can permit be approved before 15-day wait Yes SFD 3/18/2014 14 Well located within area and strata authorized by Injection Order # (put IO# in comments) (For NA 15 All wells within 1/4 mile area of review identified (For service well only) NA 16 Pre -produced injector: duration of pre -production less than 3 months (For service well only) NA 17 Nonconven. gas conforms to AS31.05.030(j.1.A),(j.2.A-D) NA 18 Conductor string provided Yes 16" conductor is set at 80ft. Engineering 19 Surface casing protects all known USDWs Yes Surface casing will be set at 1600 ft and fully cemented. 20 CMT vol adequate to circulate on conductor & surf csg Yes Plan is to pump 60% excess for surface cement. 21 CMT vol adequate to tie-in long string to surf csg No 7 5/8" cement will be brought back to depth of 3000 ft md. 22 CMT will cover all known productive horizons Yes 23 Casing designs adequate for C, T, B & permafrost Yes BTC provided and meet industry standards. 24 Adequate tankage or reserve pit Yes Rig has steel pits. All waste will be injected in SRU disposal well. 25 If a re -drill, has a 10-403 for abandonment been approved NA Grassroots well 26 Adequate wellbore separation proposed Yes Proximity analysis done. KDU-06 fails at around 1000 ft md. Caution advised. 27 If diverter required, does it meet regulations Yes Saxon 147 has 16" diverter line.. Plat map is provided of planned rigup Appr Date 28 Drilling fluid program schematic & equip list adequate Yes Max formation press= 3996 psi ( 7.8 ppg EMW) Will drill with 10-10.4 ppg mud GLS 4/18/2014 29 BOPEs, do they meet regulation Yes Saxon 147 has 11" 5000 psi BOPE 30 BOPE_press rating appropriate; test to (put psig in comments) Yes MASP= 3007 psi 1 will test BOP to 3500 psi ... annular to 2500 psi) 31 Choke manifold complies w/API RP-53 (May 84) Yes 32 Work will occur without operation shutdown Yes 33 Is presence of 112S gas probable No H2S not expected. Rig has sensors and alarms. 34 _Mechanical condition of wells within AOR verified (For service well only) NA 35 Permit can be issued w/o hydrogen sulfide measures Yes None anticipated based on offset wells. Geology 36 Data presented on potential overpressure zones Yes Geologic_ prognosis indicates well will be severly underpressured through Tyonek D2. Appr Date 37 Seismic analysis of shallow gas zones NA Production_ hole will be_mud _logged. SFD 3/18/2014 38 Seabed condition survey (if off -shore) NA 39 Contact name/phone for weekly -progress reports [exploratory only] NA_ Geologic Engineering Public Cement packer being used for Production casing . GIs Commissioner: Date: commissioner: Date Commissioner Date ors 9.(zzl r+, zz X
