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Home My WebLink About214-123Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Wednesday, March 01, 2017 1:27 PM To: Luke Keller Cc: Davies, Stephen F (DOA); Schwartz, Guy L (DOA) Subject: PTD 214-123, Frances 3 Hello Luke, Permit to Drill 214-123, for Frances 3, issued 28 August 2014 has expired under Regulation 20 AAC 25.005 (g). 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. Davies, Stephen F (DOA) From: David Duffy <dduffy@hilcorp.com> Sent: Monday, October 06, 2014 11:30 AM To: Davies, Stephen F (DOA); Luke Keller Subject: RE: Frances No. 3: Spacing Exception Notifications Attachments: Unit Map - Frances-3.pdf H i Steve, Yes. Frances 3 does conform to the spacing requirements of CO 701. The anticipated productive interval of the well is more than 1500' from the Affected Area (unit boundary). Likewise, there are no uncommitted/unleased tracts within 1500 feet. David From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Monday, October 06, 2014 10:36 AM To: David Duffy; Luke Keller Subject: FW: Frances No. 3: Spacing Exception Notifications Luke, David: Does Frances 3 conform to the spacing requirements of CO 701, or is spacing exception still required? Thanks, Steve Davies AOGCC 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 Steve Davies at 907-793-1224 or steve.davies@alaska.gov. From: Christine Gay - (C) [mailto:caay(&hilcorp.com] Sent: Friday, September 26, 2014 9:58 AM To: Davies, Stephen F (DOA) Cc: David Duffy Subject: Frances No. 3: Spacing Exception Notifications RE: Ninilchik Unit Frances No. 3 Application for Spacing Exception Notifications to Lessors In regards to your recent inquiry, the following is the list of notifications that were returned and resent. Corey Kruse Notification Mailed Notification Address Notification Returned Reason for Return Resent 7/7/14 Corey Kruse Yes Unclaimed Yes PO Box 573 Clam Gulch, AK 99568 8/8/14 Corey Kruse No n/a n/a Non -certified PO Box 573 Clam Gulch, AK 99568 James M. Rusk Notification Mailed Notification Address Notification Returned Reason for Return Resent 7/7/14 James M. Rusk Yes Unclaimed Yes PO Box 398 Soldotna, AK 99669 8/8/14 James M. Rusk No n/a n/a Non -certified PO Box 398 Soldotna, AK 99669 John Stallone, Jr.: Notification Mailed Notification Address Notification Returned Reason for Return Resent 7/7/14 John Stallone, Jr. Yes Not deliverable as Yes PO Box 34172 addressed Anchorage, AK 99502 Unable to forward 7/15/14 John Stallone, Jr. No n/a n/a PO Box 201172 Anchorage, AK 99520-1172 Keith C. and Flora D. Lovejoy: Notification Mailed Notification Address Notification Returned Reason for Return Resent 7/7/14 Keith C. and Flora D. Lovejoy Yes Unclaimed Yes 610 Princess Circle Anchorage, AK 99504 8/8/14 Keith C. and Flora D. Lovejoy No n/a n/a Non -certified 610 Princess Circle Anchorage, AK 99504 Sandra K. Udelhoven-Taylor: Notification Mailed Notification Address Notification Returned Reason for Return Resent 7/7/14 Penelope J. Maize Yes Unclaimed Yes 37401 Cannery Road Kenai, AK 99611 8/8/14 Penelope J. Maize No n/a n/a Non -certified 37401 Cannery Road Kenai, AK 99611 Copies of the backup documents are available on request. Please feel free to contact David Duffy at (907) 777- 8414 with any questions or concerns you might have regarding these notifications. Chris Gay Hilcorp Land Contractor Phone: 907-777-8432 Email: cgay@hilcorp.com Ninilchik Unit Frances 3 Hileorp Alaska, LLC 0 1,300 2,600 Feet Alaska State Plane Zone 4, NAD27 Map Date: 9/22/2014 Davies, Stephen F (DOA) From: Christine Gay - (C) <cgay@hilcorp.com> Sent: Friday, September 26, 2014 9:58 AM To: Davies, Stephen F (DOA) Cc: David Duffy Subject: Frances No. 3: Spacing Exception Notifications RE: Ninilchik Unit Frances No. 3 Application for Spacing Exception Notifications to Lessors In regards to your recent inquiry, the following is the list of notifications that were returned and resent. Corey Kruse Notification Mailed Notification Address Notification Returned Reason for Return Resent 7/7/14 Corey Kruse Yes Unclaimed Yes PO Box 573 Clam Gulch, AK 99568 8/8/14 Corey Kruse No n/a n/a Non -certified PO Box 573 Clam Gulch, AK 99568 James M. Rusk Notification Mailed Notification Address Notification Returned Reason for Return Resent 7/7/14 James M. Rusk Yes Unclaimed Yes PO Box 398 Soldotna, AK 99669 8/8/14 James M. Rusk No n/a n/a Non -certified PO Box 398 Soldotna, AK 99669 John Stallone, Jr.: Notification Mailed Notification Address Notification Returned Reason for Return Resent 7/7/14 John Stallone, Jr. Yes Not deliverable as Yes PO Box 34172 addressed Anchorage, AK 99502 Unable to forward 7/ 15 / 14 John Stallone, Jr. No n/a n/a PO Box 201172 Anchorage, AK 99520-1172 Keith C. and Flora D. Lovejoy: Notification Mailed Notification Address Notification Returned Reason for Return Resent 7/7/14 Keith C. and Flora D. Lovejoy Yes Unclaimed Yes 610 Princess Circle Anchorage, AK 99504 8/8/14 Keith C. and Flora D. Lovejoy No n/a n/a Non -certified 610 Princess Circle Anchorage, AK 99504 Sandra K. Udelhoven-Taylor: Notification Mailed Notification Address Notification Returned Reason for Return Resent 7/7/14 Penelope J. Maize Yes Unclaimed Yes 37401 Cannery Road Kenai, AK 99611 8/8/14 Penelope J. Maize No n/a n/a Non -certified 37401 Cannery Road Kenai, AK 99611 Copies of the backup documents are available on request. Please feel free to contact David Duffy at (907) 777- 8414 with any questions or concerns you might have regarding these notifications. Chris Gay Hilcorp Land Contractor Phone: 907-777-8432 Email: cgay@hilcorp.com Davies, Stephen F (DOA) Subject: Canceled: Public Hearing (Frances #2 and #3) (Hilcorp) Location: Public Hearing Start: Tue 9/9/2014 2:00 PM End: Tue 9/9/2014 4:00 PM Show Time As: Free Recurrence: (none) Meeting Status: Not yet responded Organizer: CAL-DOA-AOGCC (DOA sponsored) Required Attendees: Ballantine, Tab A (LAW); Bender, Makana K (DOA); Bettis, Patricia K (DOA); Mayberry, David (DOA sponsored); Brooks, Phoebe L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Eaton, Loraine E (DOA); Ferguson, Victoria L (DOA); Foerster, Catherine P (DOA); Frystacky, Michal (DOA); Grimaldi, Louis R (DOA); Guhl, Meredith D (DOA); Hill, Johnnie W (DOA); Hunt, Jennifer L (DOA); Jackson, Jasper C (DOA); Jones, Jeffery B (DOA); Kair, Michael N (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Singh, Angela K (DOA); Wallace, Chris D (DOA); David Duffy (dduffy@hilcorp.com); Nathan Hile (nwhcmatrix@hotmail.com); Salena Importance: High Davies, Stephen F (DOA) Subject: Canceled: Public Hearing (Frances #2 and #3) (Hilcorp) Location: Public Hearing Start: Tue 9/9/2014 2:00 PM End: Tue 9/9/2014 4:00 PM Show Time As: Free Recurrence: (none) Meeting Status: Not yet responded Organizer: CAL-DOA-AOGCC (DOA sponsored) Required Attendees: Ballantine, Tab A (LAW); Bender, Makana K (DOA); Bettis, Patricia K (DOA); Mayberry, David (DOA sponsored); Brooks, Phoebe L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Eaton, Loraine E (DOA); Ferguson, Victoria L (DOA); Foerster, Catherine P (DOA); Frystacky, Michal (DOA); Grimaldi, Louis R (DOA); Guhl, Meredith D (DOA); Hill, Johnnie W (DOA); Hunt, Jennifer L (DOA); Jackson, Jasper C (DOA); Jones, Jeffery B (DOA); Kair, Michael N (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Singh, Angela K (DOA); Wallace, Chris D (DOA); David Duffy (dduffy@hilcorp.com); Nathan Hile (nwhcmatrix@hotmail.com); Salena Importance: High Davies, Stephen F (DOA) From: David Duffy <dduffy@hilcorp.com> Sent: Monday, July 07, 2014 11:27 AM To: Davies, Stephen F (DOA); Colombie, Jody J (DOA) Cc: Jeff Allen; Larry Greenstein; David Buthman Subject: Hilcorp - Ninilchik Unit, Frances No. 3 Spacing Exception Applicatio (Confidential data enclosed) Attachments: 7-7-14 Frances 3 Spacing exception (final) (signed).pdf Steve & Jody: Please find attached Hilcorp's most recent spacing exception application for the Ninilchik Unit Frances No. 3 well. This spacing exception application will not be necessary after the proposed Pool Rules are established. The original hardcopy will be hand delivered later today with proof of the certified mailing and a set of labels. Give me call if you have any questions or would like to schedule a technical briefing. Regards, David Duffy, Landman Hilcorp Alaska, LLC Direct: 907-777-8414 Cell: 907-301-2629 dduffy@hilcorp.com This email may contain confidential and / or privileged information and is intended for the recipient(s) only. In the event you receive this message in error, please notify me and delete the message. Vfl Hilcorp Alaska, LLC July 7, 2014 Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone:907/777-8414 Fax:907/777-8301 Email: dduffvphilcorp.com RE: Application for spacing exception per 20 AAC 25.055(a)(2) and (4) to test and produce the Frances No. 3 well within the Ninilchik Unit Undefined Tyonek and Beluga Pools Dear Commissioner Foerster: Pursuant to 20 AAC 25.055(a)(2) and (4), Hilcorp Alaska, LLC ("Hilcorp"), as Operator of the Ninilchik Unit, requests permission to test and produce the Frances No. 3 well in the Undefined Tyonek and Beluga Pools within 1,500 feet of a property line where the owner and landowner are not the same on both sides of the line, and within 3,000 feet of other wells capable of producing from the same pool. To date, no special Pool Rules have been established within the Ninilchik Unit. Therefore, statewide spacing regulation 20 AAC 25.055(a) is controlling. In relevant part, subsections (a)(2) and (a)(4) provide: (a)(2) For a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line. (a)(4) if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool. The location of Frances No. 3 and its relationship to adjoining properties and wells is depicted in Exhibit A. A confidential plat (well data) is provided in Exhibit B. Surface Location: 239' FNL, 2492' FWL, Sec 7, TIN, R12W, SM, AK Top of Productive Interval: 350' FNL, 1574' FWL, Sec 7, TIN, R12W, SM, AK Bottom Hole Location: 729' FNL, 1045' FEL, Sec 12, TIN, R13W, SM, AK Based on confidential geological and engineering data available to Hilcorp, it is apparent that both the Undefined Tyonek and Beluga Pools are particularly discontinuous and unpredictable, and that they drain small areas. The existing wells in the Falls Creek area indicate that the majority of the fluvial sandstone reservoirs drain less than 155 acres or —1,466-ft radius. The Frances No. 3 well indicates several gas reservoirs cannot be Ninilchik Unit Frances No. 3 Spacing Exception Application July 7, 2014 Page 2 of 7 produced from within the existing boundary of the Falls Creek Participating Area ("PA and cannot be efficiently produced from existing wells.' In order to prevent waste and maximize gas recovery from the Undefined Tyonek and Beluga Pools, we therefore request a spacing exception. Frances No. 3 and all affected properties are located within the existing Ninilchik Unit Boundary. Hilcorp, as sole unit operator and 100 percent working interest owner, will account for all testing and production of Frances No. 3 as required by the Ninilchik Unit Agreement. As a result, the correlative rights of all affected owners, landowners and operators will be protected by approval of the requested short duration test and spacing exception. At the date of this mailing, a copy of this application was sent by certified mail to the all affected owners and landowners within 3000 feet of Frances No. 3's anticipated productive interval. No other affected operators exist. Also enclosed is an affidavit stating the undersigned is acquainted with the facts and verifying that all facts asserted herein are true. Should you have any technical questions, please contact Mr. David Buthman, Senior Geologist, at (907) 777-8395, or you may contact the undersigned at (907) 777-8414. Sincerely, r David W. Duffy, Landman Hilcorp Alaska, LLC Enclosures: Exhibit A, Confidential Exhibit B (AOGCC-only), Affidavit, Copy of Certified Mail Receipts (AOGCC-only), Mailing Labels for AOGCC Notice (AOGCC-only) CC: Owners and Landowners within 3000 feet of subject well ' Existing wells currently or potentially open to production within 3000' of the Frances No. 3 include: Frances #1, Falls Creek #5, Falls Creek #4, Falls Creek #3, and Falls Creek 41 RD. See Exhibit B (Confidential). Ninilchik Unit Frances No. 3 Spacing Exception Application July 7, 2014 Page 3 of 7 Certified Mailing List Adair Properties, LP Augustine Revocable Trust c/o David T. McCabe c/o Richard and Carole A. Augustine 1326 K Street PO Box 2849 Anchorage. AK 99510 _ Homer, AK 99603 Bureau of Land Management Charles Walsh 222 West 7th Avenue PO Box 3502 Anchorage, AK 99513 Bellevue, WA 98009 Charles Weyhaupt Corey Kruse 116 Moonglow PO Box 573 Belleville, 1L. 62221 Clam Gulch, AK 99568 David Weyhaupt Dennis Hedman 125 Calypso DR 2219 St. Elias Drive Belleville, IL 62221 Anchorage, AK 99517 Edward C. Greene and Myong C. Greene Emil & Frances Bartolowits 5110 B Chena Hot Springs Road P.O. Box 227 Fairbanks, AK 99712-5100 Clam Gulch, AK 99568 Harold A. & Marguerite M. Pederson Harold Lee & Diane R. Pederson 925 R Street 925 R. St., Apt. I Anchorage, AK 99501 Anchorage, AK 99501 James A. and Theresa L. Wilson James C. Kruse and Linda C. Kruse 5121 Bainbridge Circle PO Box 378 Anchorage, AK 99516 Clam Gulch, AK 99568 James M. Rusk James Reinhardt PO Box 398 1415 Orchard St Soldotna, AK 99669 Belleville, IL 62221 Jeanne Nelena Hayes Jens H. and Anneline Hansen I I I I Fox Ave. 3250 Montepcher Ct. Kenai, AK 99611 Anchorage, AK 99503 John Stallone, Jr. Keith C. and Flora D. Lovejoy PO Box 34172 610 Princess Circle Anchorage, AK 99502 Anchorage, AK 99504 Ninilchik Unit Frances No. 3 Spacing Exception Application July 7, 2014 Page 4 of 7 Certified Mailing List L.S. Kurtz Margaret Calder 1050 Beach Lane c/o Michelle McCartan Anchorage, AK 99510 10976 Kenai Spur Highway Kenai, AK 99611 Marybeth Jackson Melvin W. Tipton 33458 Alyson Circle 619 E. Ship Creek Ave, Ste 250 Soldotna, AK 99669 Anchorage, AK 99501 Michael and Marjorie Bang Michelle Jean McCartan PO Box 271 10976 Kenai Spur Highway Clam Gulch, AK 99568 Kenai, AK 99611 Norma Jeanne Nichols Paul D. and LaRae A. Bartolowits 13104 NE 8th CT P.O. Box 528 Vancouver, WA 98685 Clam Gulch, AK 99568 Penelope J. Maize R.L. Smith 37401 Cannery Road c/o Charles Walsh Kenai, AK 99611 PO Box 3502 Bellevue, WA 98009 Richard S. Bartolowits State of Alaska, 44400 Teaberry Avenue Department of Natural Resources Kenai, AK 99611 550 West 7th Avenue, Ste. 1100 Anchorage, AK 99501 Thomas Weyhaupt Veray H. Matthews PO Box 1465 3250 Montepelier Ct. Alachua, FL 32616 Anchorage, AK 99503 Walter G. Williams 2262 Knoll CIR Anchorage, AK 99501 Feet Ninilchik Unit Frances No. 3 Spacing Exception Application July 7, 2014 Page 5 of 7 Exhibit A Fnrwts 3 1500 bu4er Fee Lean TrAdm wOil and Gas Una Bourday L...M Lkd ExPwm*n A*a t'a-mcapffid1 Frances #3 -• ° Spacing Exception Application Alaska .SwEPbr*Zone 4,NAX- A Awhp Dace Redacted M. Guhl 9/2/2021 Ninilchik Unit Frances No. 3 Spacing Exception Application July 7, 2014 Page 6 of 7 VERIFIATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET ALASKA NINILCHIK UNIT Frances No. 3 Well I, DAVID W. DUFFY, Landman, Hilcorp Alaska, LLC, do hereby verify the following: I am acquainted with Hilcorp Alaska, LLC's application for a spacing application to the Alaska Oil and Gas Conservation Commission for the Frances No. 3 well pursuant to 20 AAC 25.055(a)(2) and (4). 1 assert all facts outlined in the above -referenced application are true. I further assert the requested spacing exception is necessary to expand existing unit production of natural gas from the Undefined Tyonek and Beluga Pools. I have reviewed the plat attached to said application and it correctly portrays the pertinent and required data for the Commission to take action on this request. DATED at Anchorage, Alaska this Zday of July 2014. David W. Duffy, L man Hilcorp Alaska, LLC STATE OF ALAKSA ) ) ss THIRD JUDICIAL DISTRICT ) SUBSCRIBED TO AND SWORN before me this 7 day of July 2014 STATE OF ALASI'CA NOTARY PUBLIC �i'd> • �� Zelma M. Clarke lul NO RY PUBLIC IN AND FOR * km Nav10,20ie T STATE OF ALSKA My Commission expires: H E STATE; s1 GOVFERNOR SI BAN PARNELL Luke Keller Drilling Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 333 West Seventh Avenue Anchorage, Alaska 99501-3572 vain: 907.279.1433 Re: Ninilchik Field, FC Beluga and FC Tyonek Undefined Gas Pools, Frances #3 Hilcorp Alaska, LLC Permit No: 214-123 Surface Location: 246' FNL, 2749' FEL, SEC. 7, TIN, R12W, SM, AK Bottomhole Location: 729' FNL, 1045' FEL, SEC. 12, TIN, R13W, SM, AK Dear Mr. Keller: Enclosed is the approved application for permit to drill the above referenced development well. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to produce is contingent upon issuance of a conservation order approving a spacing exception. Hilcorp Alaska, LLC assumes the liability of any protest to the spacing exception that may occur. 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, Daniel T. Seamount, Jr. Commissioner 7f " DATED this _day of August, 2014 _ I v a STATE OF ALASKA <A OIL AND GAS CONSERVATION COM ION AUG 1 1 Z014 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 Coalbed Gas ❑ Gas Hydrates ❑ Redrill ❑ Reentry ❑ Exploratory ❑ Service - WAG ❑ Service - Disp ❑ Geothermal M Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket Single Well El11. Well Name and Number: Hilcorp Alaska, LLC Bond No. 0 3.5 44 ey 4 CJ' �1. Frances #3 3. Address: 6. Proposed Depth: �C {�/5./yG 12. Field/Pool(s): 3800 Centerpoint Drive, Ste 1400 Anchorage AK 99503 MD: 9,481', TVD: 8,560' • Ninilchik z,r3rjFC Tyonek Undef Gas 4a. Location of Well (Governmental Section): 7. Property Designation (Lease Number): : Surface: 246' FNL, 2749' FEL, Sec 7, T1 N, R12W, SM, AK Unit Tract 188 (ADL000590) r r' �,yt„�r FC Beluga Undef Gas Top of Productive Horizon: 8. Land Use Permit: � J. Hpproximate Spud Date: 350' FNL, 1574' FWL, Sec 7, T1N, R12W, SM, AK N/A 11/10/2014 9. Acres in Propertv: 14. Distance to Nearest Propertv: Total Depth: 729' FNL, 1045' FEL, Sec 12, T1 N, R13W, SM, AK 564.45 acres in ADL000590 696' E to Unit Tract 15A (measured 988.66 in Ninilchik Unit Falls Creek PA from BHL) 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above MSL: 268.4 feet 15. Distance to Nearest Well Open Surface: x- 240037 . y- 2267313 Zone- 4 GL Elevation above MSL: • 249.8 feet to Same Pool: 1,516' 16. Deviated wells: Kickoff depth: 1,400 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 31 degrees Downhole: 3715psi , Surface: 2859psi ✓ 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling I Length MD TVD MD TVD (including stage data) Cond 16" 109 X-56 X-56 80, 0 0 80' 80' Driven 12-1/4" 9-5/8" 40 L-80 L-80 3,600' 0 0 3,600' 3,384' 413bbl / 1,761ft3 8-1/2" 5-1/2" 17 P-110 P-110 9,481' 0 0 9,481' 8,560' 337.1bbl / 1,893' 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❑ 20 AAC 25.050 requirements❑✓ 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is true and correct. Contact Luke Keller Email Ikeller(cbhilcorp.com Printed Name Luke Kell r Title Drilling Engineer Signature Phone (907) 777-8395 Date 8/11/2014 Commission Use Only Permit to Drill , / API Number: .L Permit Approval See cover letter for other Number: Ll7 �L—j 50 `"jt�77 Date: requirements. Conditions of approval : If box is checked, well may/not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales - Other: 5 U� �$ ► j �' t ' Samples req'd: Yes ❑ `No, Mud log req'd: Yes �Nb ❑ Spacing HzS measures: Yes ❑Nor f Directional exception req'd: eS No L❑J Inclination svy req'd�❑ �N^o -only svy req'd: Yes �} / 12 ❑/ivo,f] APPROVED BY ,� rl f / � Approved by: COMMISSIONER THE COMMISSION Date: 1�' `J **��— 7 /`( � n Submit Form and Form 10-401 (Revise�Ij10/2012) This rtji�ls� li f�rom the date of approval (20 AAC 25.005(g)) Attachments in Duplicate JJ��,,JJ '' `` LJ 1"OL �t5�rl�'� � _'v, /T y. Hilcorp Alaska, LLC Frances #3 Drilling & Completion Program Version 1 July 5t", 2014 Hilcorp Energy Company Contents Frances #3 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 16-3/4" conductor riser.........................................................................................................11 11.0 Drill 12-1/4" Hole Section.............................................................................................................12 12.0 Run 9-5/8" Surface Casing...........................................................................................................16 13.0 Cement 9-5/8" Surface Casing.....................................................................................................19 14.0 BOP N/U and Test.........................................................................................................................22 15.0 Drill 8-1/2" Hole Section...............................................................................................................23 16.0 Run 5-1/2" Production Casing.....................................................................................................28 17.0 Cement 5-1/2" Production Casing...............................................................................................31 18.0 RDMO............................................................................................................................................34 19.0 Perf and Frac.................................................................................................................................34 20.0 BOP Schematic..............................................................................................................................35 21.0 Wellhead Schematic......................................................................................................................36 22.0 Days Vs Depth...............................................................................................................................37 23.0 Formation Tops.............................................................................................................................38 24.0 Anticipated Drilling Hazards.......................................................................................................39 25.0 Saxon Rig 147 Layout...................................................................................................................41 26.0 FIT Procedure...............................................................................................................................42 27.0 Choke Manifold Schematic..........................................................................................................43 28.0 Casing Design Information...........................................................................................................44 29.0 8-1/2" Hole Section MASP............................................................................................................45 30.0 Spider Plot (NAD 27) (Governmental Sections).........................................................................47 31.0 Surface Plat (As Staked) (NAD 83)..............................................................................................48 32.0 Surface Plat (As Staked) (NAD 27)..............................................................................................49 33.0 Offset MW vs TVD Chart............................................................................................................50 Frances #3 Drilling & Completion Procedure 1.0 Well Summary Well Frances #3 Pad Bartolowits Pad Planned Completion Tye 2-7/8" prod tubing inside 5-1/2" production casing Target Reservoir(s) Beluga 50, Beluga 135, T onek, T-8, T-10, T-50, T-60, T-65 Planned Well TD, MD / TVD 9,481' MD / 8,560' TVD PBTD, MD / TVD 9,300' MD / 8,383' TVD Surface Location (Governmental) 246' FNL, 2749' FEL, Sec 7, TIN, R12W, SM, AK Surface Location (NAD 27) X=240037, Y=2267313 Surface Location (NAD 83) X=1380055.5, Y= 2267074.4 Top of Productive Horizon (Governmental) 350' FNL, 1574' FWL, Sec 7, TIN, R12W, SM, AK TPH Location (NAD 27) X=239126.71, Y=2267222.15 TPH Location (NAD 83) X=1379144, Y=2266983 BHL (Governmental) 729' FNL, 1045' FEL, Sec 12, TIN, R13W, SM, AK BHL (NAD 27) X=236500, Y=2266900 BHL (NAD 83) X=1376517, Y=2266661 AFE Number 1412308D AFE Drilling Days 32 AFE Completion Days AFE Drilling Amount $5,425,934 AFE Completion Amount Maximum Anticipated Pressure (Surface) 2859 psi (100% evacuation to 0.1 psi/ft gradient) Maximum Anticipated Pressure (Downhole/Reservoir) 3715 psi Work String 4-1/2" 16.6# S-135 CDS-40 KB Elevation above MSL: 249.8' + 18.6' = 268.4' GL Elevation above MSL: 249.8' NAVD88 BOP Equipment 11" 5M T3 -Energy Annular BOP 11" 5M T3-EnergyDouble Ram 11" 5M T3-Energy Single Ram Page 2 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Energy Company 2.0 Management of Change Information 11 Hileol'p Alaska, LLC Hilcarp Changes to Approved Permit to Chill Date: Subject: Changes to Approved Permit to Drill for Frances #3 File #: Frances #3 Drilling and Completion Program .Any modifications to Drilling & Completion Program will be documented and approved below. Changes to an approved APD will be os6Qj6Athe ADGCC Approval: Prepared: Drilling Manager Date Drilling Engineer Date Page 3 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure 3.0 Tubular Program: Hole Section OD (in) ID (in) Drift (in) Conn OD (in) Wt #/ft(psi)(psi) Grade Conn Burst Collapse Tension (k-lbs Cond 16" 15" - - 109 X-56 Weld 12-1/4" 9-5/8" 8.835" 8.75" 10.625" 40 L-80 BTC 5750 3090 916 8-1/2" 5-1/2" 4.892" 4.767" 6.05" 17 P-110 DwCHT 7740 6290 397 4.0 Drill Pipe Information: Hole Section OD (in) Ill (in) TJ II) in TJ OD in Wt #/ftpsi) Grade Conn Burst Collapse (psi) Tension k-lbs) All 4.5" 3.826 2.6875" 5.25" 16.6 5-135 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 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Energy 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. 5.2 Afternoon Updates • Submit a short operations update each work day to pmazzolinighilcorp com , lkeller@hilcorp.com and jbarrettghilcorp.com 5.3 Intranet Home Page Morning Update • Submit a short operations update each morning by lam on the company intranet homepage. On weekend and holidays, ensure to have this update in before 5am. Each rig will be assigned a username to login with. 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 • Send final "As -Run" Casing tally to lkellerghilcorp com and ibarrett@hilcorp.com 5.6 Casing and Cmt report • Send casing and cement report for each string of casing to lkellerghilcorp.com and ibarretto,hilcorp.com Page 5 Version 1 July, 2014 Luke Keller Drilling Engineer Hilrorp Alaska. LU: August 1st, 2014 Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue Anchorage, Alaska 99501 Re: Frances #3 Dear Commissioner, Hilcorp Alaska, LLC P.O. Box 244027 Anchorage, AK 99524-4027 Tel 907 777 8395 Email Ikeller@hilcorp.com AUG 11 1014 A01 J Enclosed for review and approval is the application for the Permit to Drill the Frances #3 well. Frances #3 is a is a western appraisal well of the Falls Creek Pool structural closure, targeting the Tyonek T- 50 through T-65, and the T-8 and T-10 reservoirs (frac candidates), and collecting data for a frac job in the T- 10 and T-8 reservoirs found in the Falls Creek #5 well. The base plan is a build and hold wellbore, with a kick- off point at 1400' MD, and reaching a maximum angle of 31 deg. Drilling operations are expected to commence approximately Nov 10th, 2014. The Saxon Rig # 147 will be used to drill the well and run the 5-1/2" long string. General sequence of operations: 1. MOB Saxon Rig # 147 to well site 2. N/U 16-3/4" conductor riser. 3. Drill 12-1/4" hole to 3600' MD. Run and cmt 9-5/8" surface casing. 4. N/D conductor riser, N/U & test 11" x 5M T3-Energy BOP. 5. Drill 8-1/2" hole section to 9,481' MD. Run wireline logs. Run and cmt 5-1/2" production casing. 6. N/D BOP, N/U temp abandonment cap, RDMO. Reservoir Evaluation Plan: 1. Surface hole: No open hole logs planned. Will log GR through surface casing. 2. Production Hole: LWD: GR + Res + Den/Neu (Triple Combo). Open hole wireline logging — Dipole sonic and (25) rotary sidewall cores. Mud loggers from surface casing point to TD. If you have any questions, please don't hesitate to contact myself at 777-8389 or Paul Mazzolini at 777-8369. Sincerely, Luke Keller Drilling Engineer Hilcorp Alaska, LLC Page 1 of 1 Frances #3 Drilling & Completion Procedure Hilcorp Energy Company 6.0 Planned Wellbore Schematic �� 0 - TOC at 3100' PBTD = 9,380' SRD ? 3,M' TSB TD = 9,491' dID ; 3-5II0' TTVI) CASING DETAIL Mud Size Type Grade Conn_ ID Tap �.<n Weight condu=r — 16" Driven to set. 109 X-56 weld 1.61 5 urf BD' Depth 9-5/3' Surf. Csg 40 L-30 Brc 6.635" surf 36W S.6 PPa HC'�CHT 1 5-1f2` Prod Casino 17 L-BD 4. 692" _ 1 9,411V 9.5 PP1 TUBING 2-7,; 8 I Production 1 6.4 1 L-W I I ET .44- 1 S ulf DrillinE Info Hole Section Casing P.9tq' 12-1/4- 9-5/e S.B ppg. 4-1,12" B-Lf2" 11/2" 9.5 PP9 4-1/2' JEWELRY DETAIL No. [Depth ID 0D Item 1 150" SCSSv 2 250Y CIM 3 3500 Prod Pkr 4 3520 :k+irelinere-entryguide Planned Reservoir objectives Zone Tap i,6/ID1 Btm (TVDj Est Pressure Ef. W Gradient 50uga-50 2,699 2,465 1,460 8.3 0.43 Beluga 135 3,79D 3,461 1,466 5.3 0.43 Tf 2MR 5,4Z2 4,951 2.129 6 3 0.43 T-6 5,691 5,2GD 2,236 B.3 4.43 T44 6,555 6,016 2,557 5.3 0.43 T-50 s'ws 6,214 Z,672 6.3 0A3 T-60 S'255 7,566 3,253 3.3 0.43 T-55 6,506 7,769 3,341 8.3 0.43 Page 6 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure HilcOrp Energy Company 7.0 Drilling / Completion Summary Frances #3 is a is a western appraisal well of the Falls Creek Pool structural closure, targeting the Tyonek T- 50 through T-65, and the T-8 and T-10 reservoirs (frac candidates), and collecting data for a frac job in the ✓ T-10 and T-8 reservoirs found in the Falls Creek #5 well. The base plan is a build and hold wellbore, with a kick-off point at 1400' MD, and reaching a maximum angle of 31 deg. Drilling operations are expected to commence approximately Nov 1 Oth, 2014. The Saxon Rig # 147 will be used to drill the well and run the 5-1/2" long string. All known potential fresh water zones exist above 200'. This information is based off salinity calculations of neighboring water wells. Chlorides are 1100 ppm at the 171 — 194' sand, 1800 ppm at the 505 — 535' sand, and 6000 ppm at the 1040' sand. Furthermore, the TGAS (total gas) curve from offset mud logs begins registering shallow gas at depths just below the sandstone bed at 200'. Surface casing will be run to 3,600' MD / 3,384' TVD and cemented to surface to ensure protection of these resources. Cement returns to surface will confirm TOC at surface. If cmt 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. General sequence of operations: 1. MOB Saxon Rig # 147 to well site 2. N/U 16-3/4" conductor riser. -r I h`' 3. Drill 12-1/4" hole to 3600' MD. Run and cmt 9-5/8" surface casing. 4. N/D conductor riser, N/U & test 11" x 5M T3-Energy BOP. 5. Drill 8-1/2" hole section to 9,481' MD. Run wireline logs. Run and curt 5-1/2" production casing. 6. N/D BOP, N/U temp abandonment cap, RDMO. Reservoir Evaluation Plan: 1. Surface hole: No open hole logs planned. Will log GR through surface casing. 2. Production Hole: LWD: GR + Res + Den/Neu (Triple Combo). Open hole wireline logging — Dipole sonic and (25) rotary sidewall cores. 3. Mud loggers from surface casing point to TD. Page 7 Version 1 July, 2014 Frances #3 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 Frances #3. Ensure to provide AOGCC 24 hrs notice prior to testing BOPS. -� • The initial test of BOP equipment will be to 250/3DO11-psi & subsequent tests of the BOP equipment will be to 250/3000 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: A diverter waiver is requested due to the recent drilling of Frances #1 on the same pad, and Falls creek #5 nearby (2185'). No issues were experienced on either well drilling the surface or Dq.-� C/` Page 8 Version 1 July, 2014 Hilcorp Energy Company Frances #3 Drilling & Completion Procedure Summary of BOP Equipment and Test Requirements Hole Section Equipment Test Pressure (psi) 12-1/4" • None planned N/A • I I" x 5M T3-Energy (Model 7082) Annular BOP �SCv • 11" x 5M T3-Energy Double Ram Initial Test: 250Z34A6- o Blind ram in btm cavity (Annular 2500 psi) • Mud cross 8-1/2" • 11" x 5M T-3 Energy Single Ram • 3-1/8" 5M Choke Line Subsequent Tests: • 2-1/16" x 5M Kill line 250/-'jem 35c,- • 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. • 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.regg_galaska.gov Guy Schwartz / Petroleum Engineer / (0): 907-793-1226 / (C): 907-301-4533 / Email: guy.schwartzgalaska.gov Victoria Ferguson / Petroleum Engineer / (0): 907-793-1247 / Email: Victoria.fer usongalaska.goy Primary Contact for Opportunity to witness: AOGCC.Inspectorsgalaska. -og_v 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 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Energy Company 9.0 R/U and Preparatory Work 9.1 Set 16" conductor at 60' below ground level. 9.2 Dig out and set impermeable cellar. 9.3 Install Seaboard slip-on 16-3/4" 3M "A" section. 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 Mud loggers are NOT required on the surface hole section. 9.8 After rig equipment has been spotted, R/U handi-berm containment system around footprint of rig. 9.9 Mix mud for 12-1/4" hole section. 9.10 Set test plug in wellhead prior to N/U conductor riser to ensure nothing can fall into the wellbore if it is accidentally dropped. 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 Version 1 July, 2014 0 Hilcorp Energy Company 10.0 NX 16-3/4" conductor riser Frances #3 Drilling & Completion Procedure 10.1 N/U 16-3/4" Conductor Riser • Ensure line does not direct flow from trip tank straight down the flowline. Fill up line and flowline should be oriented 90 degrees to each other at approx. the same height. • Ensure flowline outlet installed so that enough slope exists to carry cuttings to the shakers. • Consider adding additional drainage points at the bottom of the conductor riser if deemed necessary. • R/U fill up line to conductor riser. 10.2 Set 15.375" ID wearbushing in wellhead. 10.3 Rig Orientation on Frances pad: +,q; WELL z �� I � D 60'7FRANWCES m �—PRANCES #2Wfl L FRANCES #3 WELL ' ® 60 60, . 4 ❑ 3 X 3" FlAWUNES UNDER GRGUND (FUTURE) Page 11 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Energy Company 11.0 Drill 12-1/4" Hole Section 11.1 P/U 12-1/4" 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. • Have DD run hydraulics calculations on site to ensure optimum nozzle sizing. Hydraulics calculations and recommended TFA is attached below. • Workstring will be 4.5" 16.6# S-135 CDS40. 11.2 12-1/4" BHA (No LWD planned in surface hole): COMPONENT Item 1 DATA Re HDBS FX58M PDC i ! (in) 12.20D i (in) 2.750 Gauge (in) 12.250 (Ibpfj 378A5 Connection B 6-5l8' REG (fQ 1.00 Length (ft) 1.00 2 8" SperryDrill Lobe 4,!5 - 5.3 stg 8.000 5 00D 121.08 B 6-5W REG 28.99 29.99 Stabilizer 11.50D 3 Non Mag Stabilizer B.000 2.813 12.125 150.12 B 6-5�8' REG 6.00 35.99 4 8" DM Collar (Directional) B.00D 3.500 147.41) B 6-5I8' REG 9.20 45.19 5 8" TM - HOC (pulses) 8.15D 4.00D 145.2D S 6-5 8' REG 15.77 50.96 6 Non Mag Flex Drill Collar B.000 3.00D 147.22 B 6-5t8' REG 30.00 90.95 7 Non Mag Flex Drill Collar 8.000 3.00D 14722 B 6-518' REG 30.0D 120.95 8 X-0 6-5fS Reg Pin X 4-112" IF Box 8.000 2.813 150.12 B 4-112' IF 3.50 124.45 9 &'4' Non Mag Flex Drill Collar 5.750 2.750 101.71 B 4-1,2' IF 30.0D 154.45 10 5-314" Non Mag Flex Drill Collar 6.750 2.75D 101.71 B 4-112' IF 30.00 184.46 11 X-0 4-112' IF Pin X 4-112" CDS 40 Box 6.500 2.75D 92.85 B 4.5" CDS 40 2.75 187.21 12 6 joints 4-t 12" CDS 40 HWDP 4.50D 2.50D 37.47 180.DD 307.21 13 X-0 4-112" CDS 40 Pin X 4-112" IF Box 6.500 2.75D 92.85 B 4-112' IF 2.75 369.95 14 Weatherford 6-114" Hyd Jar 6.25D 2.25D 91.01 B 4-112' IF 30.00 399.95 15 X-0 4-112" IF Pin X 4-1,2" CDS 40 Box 6.500 2.75D 92.85 B 4.5' CDS 40 2.75 402.71 16 19 Joints 4-1,2- CDS 4D HWDP 4.500 1 2.500 37.47 570-00 972.71 972.71 Bit Number Nozzles : 9x13 Bit Size (in) 12.250 TFA (in2) t.1666 Manufacturer Dull Grade In Model Dull Grade Out Serial Number MOTOR DATA Motor Number = 2 Bend (deg) 1 ' OD (in) : 8.0DD Nozzles (32nd'f Manufacturer Sperry Drilling Avg Diff Press Model SperryDrill Cumul Cir Hrs Serial Number Page 12 Version 1 July, 2014 Hilcorp Energy Company 11.3 Primary Bit: PRODUCT SPECIFICATION'S I:ADC Code 317W Total Tooth Count 67 Gage Row Tooth Count 39 Journal Angle 33` Offset (1116") b Jet Nozzle Types Standard 83244 Extended 302447 Center Jet (if Center Jetted) 501813 T.J. Connection 6-5?8" (API Reg::) Recommended Make -Up Torque' 2800032000 Ft*Ibs. Bit Weight (Boxed) 250 Lbs. (113 Kg.) Bit Breaker (Mat. YLegacy4) 5153531506463 PRODUCT FEATURES • New patented DiamondT" Claw'lG tooth bit design_ • Tungsten carbide 'surf inserts in gage teeth for added gage protection. • Newly formulated, proprietary hardfacing on cutting structure and gage maximizes carbide and diamond volume for ultimate wear resistance. • High-speed bearing designed for high rpm and high-energy applications. . Innovative mechanical pressure compensating system provides reliable pressure 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 balling problems Frances #3 Drilling & Completion Procedure Material #622394 *Calculations based on recommendations from API and tool -joint manufacturers. 0 2012 Halliburton. All rights reserved. Sales of Halliburton products and services will be in accord solely with the terms and conditions contained in the contract between Halliburton and the customer that is applicable to the sale. Page 13 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Energy Company 11.4 4-1/2" Workstring & HWDP will come from Saxon. Jars will come from Weatherford. 11.5 Begin drilling out from 16" conductor at reduced flow rates to avoid broaching the conductor. 11.6 Drill 12-1/4" hole section to 3,600' MD. Confirm this setting depth with the geologist and Drilling Engineer while drilling the well. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Pump at 500 - 550 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. • 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. • TD the hole section in a good shale btwn 3500' MD and 3700' MD. • Take MWD surveys every stand drilled (60' intervals). 11.7 12-1/4" 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. Pason 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 — 9.5 ppg Pre -Hydrated Aquagel/freshwater spud mud Properties: De the Densityiscosi Plastic Viscosit Yield Point API FL LGS 80-3600' 8.8 - 9.5 - 85-150 1 20 - 40 25 - 45 1 <10 1 <15% System Formulation: M-1 Gel + FW spud mud Product Concentration Fresh Water 0.905 bbl M-I Gel Export 20 ppb M-1 Wate As needed Soda Ash 0.5 ppb Caustic Soda 0.1 ppb Busan 1060 0.04ppb Page 14 Version 1 July, 2014 ff HilcoT Enargy Company Frances #3 Drilling & Completion Procedure 11.8 At TD; pump sweeps, CBU, and pull a wiper trip back to the 16" conductor shoe. 11.9 TOH with the drilling assy, handle BHA as appropriate. 11.10 No open hole logging program planned for Frances #3 surface hole. Page 15 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Energy Company 12.0 Run 9-5/8" Surface Casing 12.1 R/U and pull 15.375" wearbushing. 12.2 R/U Weatherford 9-5/8" casing running equipment. • Ensure 9-5/8" 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 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 9-5/8" 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. • 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. 9-5/8" BTC Estimated M/U Torque Casing OD Est Torque to Reach Triangle Base 9-5/8" 9,630 ft-lbs Page 16 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure HilcOlp Energy Company Tenaris Casing and Tubing Performance Data I Choose pipe size, wall thickness and steel grade to view API connection options and performance data. I Size wall.. , Pipe Body Data • r Nominal OD 9.625 in Wall Thickness 0.395 in API Drift Diameter 8.679 in Nominal weight 40.00 lbsM Nominal ID 8.835 in Alternate Drift Diameter 8.75 in Plain End weight 38.97 ibsift Nominal Cross Section 11.454 sq in PtRFORMANCE Steel Grade L80 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Body Yield Strength 916,000 lbs Internal Yield Pressure 5,750 psi Collapse Pressure 3,080 psi 0► Connection Data i Regular DID 10.625 in PERFORMANCE Threads Per Inch 5 Make -Up Thread Turns 1 jjjjSteel Grade Lao Minimum Yield $0,000 psi Minimum Ultimate 95,000 psi Joint Strength 947,000 ibs Internal Pressure 5,750 psi Resistance TenarisHk��ril P-ri-r65um _Q6nnecfions Print Contact Us 1 Ver 8.5 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 17 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure 12.10 R/U 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. Page 18 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Energy Company 13.0 Cement 9-5/8" 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. • 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. 13.2 Document efficiency of all possible displacement pumps prior to cement job 13.3 R/U cmt head (if not already done so). Ensure top and bottom plugs have been loaded correctly. 13.4 Pump 5 bbls 10 ppg spacer. Test surface cmt lines. 13.5 Pump remaining 35 bbls 10 ppg spacer. 13.6 Drop bottom plug. Mix and pump cmt per below recipe. 13.7 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 .129 bpf = 10.3 57.8 16" Conductor x 9-5/8" casing annulus: LEAD: (3000' - 80') x .0558 bpf x 1.5 = 244.4 1372 12-1/4" OH x 9-5/8" Casing annulus: Total LEAD: 254.7 bbl 1430 ft3 TAIL: (3600'-3000') x .0558 bpf x 1.5 = 50 282 12-1/4" OH x 9-5/8" Casing annulus: TAIL: 90 x .096 bpf = 8.7 48.8 9-5/8" Shoe track: Total TAIL: 58.7 bbl 331 ft3 Page 19 Version 1 July, 2014 [,-71s,, )-('`l s,(- HilcOrp Energy Company Frances #3 Drilling & Completion Procedure Cement Slurry Design: Lead Slurry (3000' MD to surface) Tail Slurry (3600'to 3000' MD) System Extended Conventional Density 12.5 lb/gal 15.2 lb/gal Yield 2.13 ft3/sk �/ 1.25 ft3/sk Mixed Water 12.02 gal/sk 5.7 gal/sk Mixed Fluid 12.03 gal/sk 5.71 gal/sk Code Description Concentration Code Description Concentration Type1 Cement 94 lb/sk WBWOB Type1 Cement 94 lb/sk WBWOB Static Free De-Foamer 0.005 Ibs/sk Static Free De-Foamer 0.005 Ibs/sk CaCI Accelerator 2% bwoc CaCI Accelerator .25% bwoc Additives CD-32 Dispersant 0.4% bwoc CD-32 Dispersant 0.5% bwoc FL-52 Fluid Loss Add 0.3% bwoc FL-52 Fluid Loss Add 0.2% bwoc FP-61- De-Foamer 1 gal/100 sk FP-6L De-Foamer 1 gal/100 sk Na Metasillicate Extender 2% bwoc 13.8 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. 13.9 After pumping cement, drop top plug and displace cement with 9.5 ppg Kla-shield. 13.10 Ensure cement unit is used to displace cmt so that volume tracking is more accurate. 13.11 Displacement calculation: 3500' x .0758 bpf = 265.3 bbls 13.12 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. 13.13 Do not overdisplace by more than11/2 shoe track volume. Total volume in shoe track is 8.7 bbls. 13.14 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. 13.15 Be prepared with small OD top out tubing in the event a top out job is required. The AOGCC will require us to run steel pipe through the hanger flutes. The ID of the flutes is 1.5". Page 20 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Energy Company 13.16 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. 13.17 R/D cement equipment. Flush out wellhead with FW. 13.18 Back out and L/D landing joint. Flush out wellhead with FW. 13.19 M/J 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. 13.20 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 a. Pump rate while displacing, note whether displacement by pump truck or mud pumps, weight & type of displacing fluid b. Note if casing is reciprocated or rotated during the job c. Calculated volume of displacement, actual displacement volume, whether plug bumped & bump pressure, do floats hold d. Percent mud returns during job, if intermittent note timing during pumping of job. Final circulating pressure e. Note if pre flush or cement returns at surface & volume f. Note time cement in place g. Note calculated top of cement h. 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(a,hilcoW. com. This will be included with the EOW documentation that goes to the AOGCC. Page 21 Version 1 July, 2014 0 Hilcorp Energy Company 14.0 BOP N/U and Test 14.1 N/D the conductor flow riser. Frances #3 Drilling & Completion Procedure 14.2 N/U Seaboard multi -bowl wellhead assy. Install packoff 9-5/8" P-seals. Test to 3000 psi. 14.3 N/U 11" x 5M T3-Energy BOP as follows: • BOP configuration from Top down: 11" x 5M T3-Energy annular BOP/11" x 5M T3-Energy Model 601li double ram /I I" x 5M mud cross/11" x 5M T3-Energy Model 601li single ram • Double ram should be dressed with 2-7/8 x 5-1/2" VBRs in top cavity, blind ram in btm cavity. • Single ram should be dressed with 2-7/8 x 5-1/2" VBRs • N/U bell nipple, install flowline. • Install (2) manual valves & a check valve on kill side of mud cross. • Install (1) manual valve on choke side of mud cross. Install an HCR outside of the manual valve. 14.4 Run 4-1/2" BOP test assy, land out test plug (if not installed previously). • Test BOP to 250JWpsi for 515 min. Test annular to 250/2500 psi for 515 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 9.5 ppg Kla-Shield mud system. 14.8 R/U mud loggers for production hole section. 14.9 Set 10" ID wearbushing in wellhead. 14.10 Rack back as much 4-1/2" DP in derrick as possible to be used while drilling the hole section. 14.11 Keep 5-1/2" liners in mud pumps. Page 22 Version 1 July, 2014 0 Hilcorp Energy Company 15.0 Drill 8-1/2" Hole Section 15.1 P/U 8-1/2" directional BHA. Frances #3 Drilling & Completion Procedure 15.2 Ensure BHA components have been inspected previously. 15.3 Drift and caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. 15.4 TF offset is measured accurately and entered correctly into the MWD software. 15.5 Have DD run hydraulics calculations on site to ensure optimum nozzle sizing. Hydraulics calculations and recommended TFA is attached below. 15.6 Workstring will be 4.5" 16.6# S-135 CDS40. Page 23 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure 15.7 8-1/2" BHA (Includes GR+Res+Den/Neu LWD components): COMPONENTDATA 1 HDBS - FX65D 8.40D 2.500 8.50D 172.13 P 4-112' REG 1.00 1.00 2 7" SperryDrill Lobe 7r8 - 6.0 stg 7.000 4.952 93.13 B 4-1,2" IF 27.38 28.39 Stabilizer 7.750 3 Non klag Float Sub 6.750 2.75D 101.71 B 4-1;2" IF 3.00 31.3E 4 Integral Made StabiFizeT (NM) 6.750 2.813 8.375 100-77 B 4-1;2" IF 5.00 38.3B 5 6 3!4" DM (Directional) 6.75D 3.125 103.40 B 4-1;2" IF 9.20 45.59 6 6 3;4" DGR (Gamma) 6.751) 1.920 97.80 B 44;2" IF 4.55 50.14 7 6 3;4' EWR-P4 (Resistivity) 6.750 2.000 104.30 B 4-1;2' IF 12.10 6224 8 6 314` HCIM (Processor) 6.750 1921). 101.70 B 4-1;2' IF 4.97 5721 9 6 3;4" ALD Collar 175C 30KSI 6.751) 1.920 B.250 104.30 P NC 50 14.54 81.75 Stabilizer 8.250 10 6 314- CTN Collar 175C 3DKSI 6.750 1.905 102.30 B NC 50 1124' 93.59 11 6 3;4" T?A - HOC (Pulser) 6.900 3.25D 103.6D B 4-VT IF 15.59 109.18 12 6-3;4' Non Mag Flex Drell Collar 6.751) 2.813 100.77 B 4-112' IF 30.00 139.18 13 5-3;4' Non PAag Flex Drill Collar 6.75D 2.813 100.77 B 4-1,2' IF 30.00 169.19 14 X-0 4-1;2" CDS 40 Box X 4-1;2" IF Pin 5.500 2.75D 92.85 B 4.5" CDs 40 2.75 171 93 15 6 Joints 4-1,'2' CDS 40 HNDP 4.50D 2.50D 37.47 1B0-00 351.93 16 X-O 4-1;2" IF Box X 44!2" CDS 40 Pin 6.50D 2.75D 92.85 B 4-V2" IF 2.75 354.6B 17 Weatherford 6-1?4" Jars 6.25D 2.25D 91.01 B 4-1;2"IF 30.00 384.68 18 X-0 4-1;2" IF Pin X 4-1;2"CDS 40 Box 6.50D 2.75D 92.85 B 4.5" CDS 40 2.75 387.43 19 19 Joints 4-1;2" CDS 4D HWDP 4.50D 2.50D 37.47 570.00 957.43 -41 957.43 Bit Humber Bit Size Manufacturer Model Serial plumber (in) : 8.500 Nozzles TFA Dull Grade In Dull Grade Out 5x13 (in2) :0,5481 Page 24 Version 1 July, 2014 ff Hileorp Energy Company 15.8 Primary Bit: PRODUCT SPECIFICATIONS Cutter Type SelectCutter IADC Code Mt324 Body Type MATRIX Total Cutter Count 41 Cutter Distribution 13mm 16mm Face 1 29 Gauge 5 0 Up Drill 6 0 Number of Large Nozzles 0 Number of Medium Nozzles 0 Number of Small Nozzles 6 Number of Micro Nozzles 0 Number of Ports (Size) 0 Number of Replaceable Ports (Size) 0 Junk Slot Area (sq in) 14.SI Normalized Face Volume 42.13% API Connection 4-112 REG. PIN Recommended Make -tip Torque" 12,461 — 17,766 Ft"lbs. Nominal Dimensions" Make -Up Face to Nose 10.73 in - 273 mm Gauge Length in - 64 mm Sleeve Length 0 in - 0 mm Shank Diameter 6 in -152 mm Break Out Plate (Mat #1.cgacyd) 181954144040 Approximate Shipping Weight I601-hs. - 73Kg. SPECIAL FEATURES 1132" Relieved Gage, Combination BackreamrUp-Drill Cutters, Secondary Cutting Element - "R" Feature. TSP Gage Frances #3 Drilling & Completion Procedure Material 9803275 `Bit specific recommended make-up torque is a function of the bit I.D. and actual bit sub O.D. utilized as specified in API RP7G Section A.S.? "Dcsigt dimemians am noaninal and may vay slightly on manufactured pnducL lialliburton Drill Bits and Services :models are continuously revicucd and refined. Product specifications mayahange without notice. C'. 2013 Halliburton. All rights reserved_ Sales of Halliburton products and services will be in accord solely with the terms and conditions contained in the contract between Halliburton and the customer that is applicable to the sale. Page 25 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Fnergy Company 15.9 8-1/2" hole section mud program summary: Weighting material to be used for the hole section will be salt and calcium carbonate. Additional calcium carbonate will be on location to weight up the active system (1) ppg above highest anticipated MW. NOTE: Only use the "Black Products" & corrosion inhibitors if absolutely necessary. These products can leave behind a damaging skin that affects productivity of the well. Pason 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: 9.5 ppg Kla-Shield fresh water based drilling fluid with 6% KCI. Properties: Depths D nsity Plastic Viscosity Yield Point Chlorides API FL pH 3600'-9,481 ' 9.5 ' 10-20 15-25 60,000 — 70,000 <8 1 9.0 - 10 System Formulation: M-1 Swaco Kla-Shield with 6% KCI Product Concentration/Function Water Base Fluid Busan 1060 0.4 ppb Biocide Soda Ash 0.25 ppb PH/Hardness Control Flowzan 1.0 ppb Viscosifier/Rheology KCL 21.8 ppb weight/inhibition NaCl Salt 20.Oppb weight/inhibition Poly Pac Sup UL 0.75 ppb API Fluid Loss EMI-2009 2-3% v/v Clay/Shale inhibitor Safe-Carb 40 If needed for weight increase over Conqor 404 9.0ppg Asphasol Supreme Corrosion Mitigation Sack Black 4ppb Shale/Coal Stabilizer 3ppb-Gilsonite Shale/Coal Stabilizer 15.10 TIH w/ 8-1/2" directional assy to TOC. Shallow test MWD and LWD on trip in. Note depth TOC tagged on AM report. 15.11 R/U and test casing to 2900 psi / 30 min. Ensure to record volume / pressure and plot on FIT graph. AOGCC reg is 50% of burst = 5750 / 2 = 2875-2900 psi 15.12 Drill out shoe track and 20' of new formation. Page 26 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Energy Company 15.13 CBU and condition mud for FIT. 15.14 Conduct FIT to 12 ppg EMW. Note: Offset field test data predicts frac gradient at the 9-518 " shoe to be btwn 17 -18 ppg EMW. A 12 ppg FIT results in a 2.5 ppg kick margin while drilling with the planned MW of 9.5 ppg- 15.15 Drill 8-1/2" hole section to 9,481' MD / 8,560' TVD. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Pump at 400 - 450 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. • 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. • Mud loggers: Take samples every 30 ft, with 20 ft samples in zones of interest. Two sets of ✓ cuttings required, gas chromatograph, pixler plots. 15.16 At TD; pump sweeps, CBU, and pull a wiper trip back to the 9-5/8" shoe. 15.17 TOH with the drilling assy, stand back BHA if possible. Drop a drift on the last trip out of the hole in preparation for running the liner. 15.18 R/U and run OH wireline logs consisting of. • Dipole Sonic • Rotary sidewall cores (25). 15.19 Monitor the well at all times on the trip tank while logging. 15.20 After logging objectives accomplished, pick up a wiper trip BHA and make another run to TD. Circ B/U at TD and TOH. Rack back DP, handle BHA as appropriate. Page 27 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Energy Company 16.0 Run 5-1/2" Production Casing 16.1. R/U 5-1/2" casing running equipment. • Ensure 5-1/2" DWC/C 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. 16.2. P/U shoe joint, visually verify no debris inside joint. 16.3. Continue M/U & thread locking shoe track assy consisting of: • (1) Shoe joint w/ shoe bucked on & threadlocked (coupling also thread locked). Install (2) solid body centralizers on shoe joint prior to bucking on float shoe. The centralizers should be held in place 10' from each end via stop rings on either side. • (1) Thread locked joint (coupling thread locked). • (1) Joint with float collar bucked on pin end & threadlocked (coupling also thread locked). Install (1) solid body centralizer on float collar joint prior to bucking on float collar. • 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 and float collar prior to running in the hole. 16.4. Continue running 5-1/2" prod casing. • Fill casing while running using fill up line on rig floor. • Use "Best O Life 2000" thread compound. Dope pin end only w/ paint brush. • Install solid body centralizers on every joint to 5,400 MD. Every other joint to 3800'. None above 3800'. Leave the centralizers free floating. • Utilize a collar clamp until weight is sufficient to keep slips set properly. 5-1/2" DWC/C M/U torques Casing OD Minimum Maximum Yield Torque 5.5" 12,000 ft-lbs 13,800 ft-lbs 15,500 ft-lbs Page 28 Version 1 July, 2014 Hilc T Energy Company Technical Specifications Frances #3 Drilling & Completion Procedure Connection Type: Slze(O.D.): Weight (Wall): DWCtC Casing 5-V2 in 17.00 Ibtft (0.304 in) standaTd Material P-110 Grade 110,000 Minimum Yield Strength (psi) 125,000 Minimum Ultimate Strength (psi) Pipe Dimensions 5.500 Nominal Pipe Body O.D. (in) 4.592 Nominal Pipe Body I-D.(in) 0.304 Nominal Wall Thickness (in) 17.00 Nominal Weight (lbsr`ft) 16.89 Plain End Weight (Ibsf`h) 4.962 Nominal Pipe Body Area (sq in) Pipe Body Performance Properties 546,000 Minimum Pipe Body Yield Strength (lbs) 7,480 Minimum Collapse Pressure (psi) 10,640 Minimum Internal Yield Pressure (psi) 9,700 Hydrostatic Test Pressure (psi) Connection Dimensions 6.050 Connection O.D. (in) 4.892 Connection I.D. (in) 4.767 Connection Drift Diameter (in) 4.13 Make-up Loss (in) 4,962 Critical Area (sq in) 100.0 Joint Efficiency (%) Connection Performance Properties 546,000 Joint Strength (lbs) 22,940 Reference String Length (ft) 1.4 Design Factor 568,000 API Joint Strength (lbs) 546,000 Compression Rating (lbs) 7,480 API Collapse Pressure Rating (psi) 10,640 API Internal Pressure Resistance (psi) 91.7 Maximum Uniaxial Bend Rating [degree&1100 ft] Appoximated Field End Torque Values 12,000 Minimum Final Torque (it-lbs) 13,500 Maximum Final Torque (ft-lbs) 15,500 Connection Yield Torque (ft-lbs) Page 29 Version 1 Grade: P-110 �'*wr AN�A VAM USA 4424 W. Sara Hov.'ston Pkwy. Suite 150 Houston. 7X a 7041 Phone: 713-479-320D Fax: 7 13-479-3234 E-maR: V Ah1U SAssfesgDvasn-usa corn July, 2014 Frances #3 Drilling & Completion Procedure 16.5. 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. 16.6. Lower string and land out in wellhead. Confirm measurements indicate the hanger has correctly landed out in the wellhead profile. 16.7. 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. 16.8. After circulating, lower string and land hanger in wellhead again. Page 30 Version 1 July, 2014 0 Hilcorp Energy Company 17.0 Cement 5-1/2" Production Casing Frances #3 Drilling & Completion Procedure 17.1. 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 PUMP. • Positions and expectations of personnel involved with the curt operation. • Document efficiency of all possible displacement pumps prior to cement job. 17.2. Attempt to reciprocate the casing during cmt operations. 17.3. Pump 5 bbls 10 ppg SealBond spacer. 17.4. Test surface curt lines to 4500 psi. 17.5. Pump remaining 15 bbls 12 ppg SealBond spacer. 17.6. Mix and pump lead and tail cmt per below recipe. Ensure cmt is pumped at designed weight. Job is designed to pump 30% OH excess. Section: Calculation: (BB l Vol (ft3) 9-5/8" x 5-1/2" Overlap(Lead): 500' x 0.046 = 23 129 8-1/2" OH x 5-1/2" Liner(Lead): (6,350 — 3,600') x 0.0408 x 1.3 = 146 820 8-1/2" OH x 5-1/2" Liner(Tail): (9,481' — 6,350') x 0.0408 xl.3 = 166 932 Shoe Track(Tail): 90' x 0.023 = 2.1 12 Total Volume (Lead): 169 949 Total Volume (Tail): 168.1 944 Page 31 Version 1 July, 2014 Szi 5 Y- -7 SS$n Frances #3 Drilling & Completion Procedure HilmTEnergy Company Lead Slurry (6350' to 3600') Tail Slurry (9481' to 6350' MD) System Extended Conventional Density 13.5 lb/gal 15.2 lb/gal Yield 1.82 ft3/sk 1.25 ft3/sk Mixed Water 9.21 gal/sk 5.7 gal/sk Mixed Fluid 9.22 gal/sk 5.71 gal/sk Code Description Concentration Code Description Concentration Class G Cement 94 lb/sk WBWOB Type1 Cement 94 lb/sk WBWOB BA-90 Low den. additive 10% bwoc Static Free De-Foamer 0.005 Ibs/sk BA-56 Gas Migration 2.5% bwoc R-3 Retarder 0.9% bwoc CD-32 Dispersant 0.4% bwoc CD-32 Dispersant 0.6% bwoc Additives ASA-301 Free water control 0.1% bwoc FP-6L De-Foamer 1 gal/100 sk FP-6L De-Foamer 1 gal/100 sk BA-10A Bonding agent 1% bwoc MetaNillicate Extender 0.5% bwoc Metasillicate Extender 0.5% bwoc Static Free De-Foamer 0.005 Ibs/sk 17.7. Drop DP dart and displace with 6% KCI. 9300' x .023 = 214bbls 17.8. Do not overdisplace by more than shoe track. Shoe track volume is 1.7 bbls. 17.9. Bleed pressure to zero to check float equipment. 17.10. Pressure up again to 3500 psi and hold for 30 min to test production bore. �r Page 32 Version 1 July, 2014 Hilcorp Energy Company Frances #3 Drilling & Completion Procedure 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 i. Pump rate while displacing, note whether displacement by pump truck or mud pumps, weight & type of displacing fluid j. Note if casing is reciprocated or rotated during the job k. Calculated volume of displacement, actual displacement volume, whether plug bumped & bump pressure, do floats hold 1. Percent mud returns during job, if intermittent note timing during pumping of job. Final circulating pressure m. Note if pre flush or cement returns at surface & volume n. Note time cement in place o. Note calculated top of cement p. 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 lkellerghilcorp. com. This will be included with the EOW documentation that goes to the AOGCC. Page 33 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Energy Company 18.0 RDMO 18.1 Install back pressure valve in hanger neck. N/D BOP. 18.2 Install & test production tree. 18.3 RDMO Saxon rig #147 18.4 After rig has departed, pull BPV and run CBL tto determine TOC behind 5-1/2" production casing. Send the CBL to the AOGCC for review. 19.0 Perf and Frac 19.1 A separate sundry will be submitted to the AOGCC that will cover the below operations: • R/U workover rig • Run production tubing / pkr / CIM & SCSSV. • Perforating and flowback. • And hydraulic fracturing or other stimulation that may be necessary to produce the well commercially. Page 34 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Energy Company 20.0 BOP Schematic Page 35 Version 1 July, 2014 Hilcorp Energy Company 21.0 Wellhead Schematic Tubing head, Seaboard-S8, 11 5M X 7 1/16 5M, w/ 2- 2 1/16 5M SSO, 7" P seal bottom Casing spool, Sea boa rd-S8, 16 3/4 3M X 11 5M, w/ 2- 2 1/16 5M SSO, 9 5/8 P seal bottom Starting head, Seaboard, 16 % 3M X 16" SOW BTM, w/ 2- 2 1/16 5M SSO Ninilchik Unit New drill system -Seaboard Saxon Rig 147 16 x 9 5/8 x 5 1/2 5 %z„ Frances #3 Drilling & Completion Procedure Page 36 Version 1 July, 2014 Hilcorp Energy Company 22.0 Days Vs Depth A Irr x L qL O EDDO 7 N In a :rrr rrrr Page 37 Frances #3 Drilling & Completion Procedure Days Vs Depth -Frences#3 -Falls Creek. its 5 10 15 20 2.5 30 Days Version 1 35 IT, July, 2014 HilcO1p Energy Company 23.0 Formation Tops EXPECTED TOP NAME FL BELUGA. Beluga-50 Beluga 135 Tyonak T-8 T-10 T 50 T-60 T-65 Total Depth Frances #3 Drilling & Completion Procedure I Intersection Points TOP UID MD fFTI TVD (FT) TVQSS fFTI Est Pressure /CP�� _X _Y *I- 2,699 2,465 -2,205 r 1,060 C 7� 3,790 3,461 -3,201 1,488 5,422 4,951 -4,691 r 2.129 r 5,694 5,200 -4,940 2.236 6,588 6.016 -5,7E6 r 2,587 6,805 6,214 5,954 r 2.672 8,285 7,566 -7,306 3.2E3 r 8,508 7,769 -7,509 3,341 226,667 2,266 963 20 r 8,943 8,193 -7,933 3,523 -8,300 V3� 236,500 2,266,900 Page 38 Version 1 July, 2014 -8,300 V3� 236,500 2,266,900 Page 38 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Energy Company 24.0 Anticipated Drilling Hazards 12-1/4" 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/ 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 intia1200' 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 rheologies can be achieved. J H2S: H2S is not present in this hole section. No abnormal pressures or temperatures are present in this hole section. Page 39 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Energy Company 8-1/2" 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/ 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: 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. Page 40 Version 1 July, 2014 Hilcorp Energy Company 25.0 Saxon Rig 147 Layout Page 41 Version 1 Frances #3 Drilling & Completion Procedure July, 2014 Frances #3 Drilling & Completion Procedure 26.0 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/ J 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 42 Version 1 July, 2014 Hilcorp Energy Company 27.0 Choke Manifold Schematic Page 43 Version 1 Frances #3 Drilling & Completion Procedure July, 2014 Hilcorp Energy Company Frances #3 Drilling & Completion Procedure 28.0 Casing Design Information DATE: 713/2014 WELL: Frances #3 DESIGN BY:Luke Keller Design Criteria: Hole Size 12-114" Mud Density: 8.8 ppg Hole Size 8-112" Mud Density: 9.5 ppq Hole Size Mud Density: Drilling Mode MASP: 1736 psi (see attached MASP determination & calculation) MASP: Production Mode MASP: 2859 psi (see attached MASP determination & calculation) Collapse Calculation: Section Calculation 1 Normal gradient external stress (0.494 psilft) and the casing evacuated for the internal stress Casing Section Calculation/Specification 1 2 3 4 Casing OD 9-5J8" 5-1/2" To (MD) 0 0 To D) 0 0 Bottom MD 3,600 9,481 Bottom ) Length 3,384 3,600 8,560 9,481 Weight p f) 40 17 Grade L-80 P-110 Connection Weight w/o Bounc Factor lbs BTC 144,000 DWC1C 161,177 Tension at Top of Section Ibs) Min strength Tension 1000 lbs 144,000 916 161,177 546 Worst Case Saf Factor (Tension) Collapse Pressure at bottom (Psi) 6.36 1,672 3.39 ./ 4.229 Colla a Resistance w10 tension Psi 3,090 7,480 Worst Case Safety Factor (Collapse) 1.85 1.77 MASP psi 1,736 2.859 Minimum Yield(psi) 5,750 10„640 Worst case safety factor Burst) 3.31 3.72 Page 44 Version l July, 2014 Frances #3 Drilling & Completion Procedure Hilcorp Energy Company 29.0 8-1/2" Hole Section MASP Maximum Anticipated Surface Pressure Calculation 8-1/2" Hole Section Irifcar� Frances #3 Ninilchik Unit MD TVD Planned Top: 3600 3384 Planned TD: 9481 8560 Anticipated Formations and Pressures: Formation TVD Est pressure Oil/Gas/Wet PPG Grad Beluga-50 3,461 1488 Pos Gas 8.3 0.430 Beluga 135 4,951 2129 Pos Gas 8.3 0.430 Tyonek 5,200 2236 GAS 8.3 0.430 T-8 6,016 2587 Tight Gas 8.3 0.430 T-10 6,214 2672 Tight Gas 8.3 0.430 T-50 7,566 3253 GAS 8.3 0.430 T-60 7,769 3341 GAS 8.3 0.430 T-65 8,193 3523 GAS 8.3 0.430 TD Offset Well Mud Densities Well MW ranee Ton (TVD) Rottom iTVnl nata Falls Creek #1 11.6 -13.1 3,500 10,000 1960 Falls Creek #2 10.5 -11 3,500 6,300 1966 Falls Creek #3 9.4 - 9.5 3,500 8,400 2003 Falls Creek #4 9 - 9.5 3,500 6,000 2004 Falls Creek #5 9.5 - 9.7 ,: 3,520 9,715 ✓ 2014 Corea Creek #1 9.5 -10.9 3,500 9,00D 1996 Frances #1 9.5 - 9.8 3,500 10,000 7T 2 113 Assumptions: i 1. Fracture gradient at shoe is estimated at 0.936 psi / ft based on field test data. 2. Maximum planned mud density for the 8-1/2" hole section is 9.5 ppg. y 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 welibore remains drilling fluid density. Page 45 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure Fracture Pressure at 9-5/8" shoe considering a full column of gas from shoe to surface: 3394 (ft) x 0.936(psi/ft)= 3167 psi 3167(psi) - [0.1(psi/ft)*3384(ft)]= 2829 psi MASP from pore pressure ]unknown gas sand at TD, at 8.4 ppg, encountered while drilling) 8,560 (ft) x 0.434(psi/ft)= 3715 psi 3715(psi) - [(2/3)*0.1(psi/ft)*8,560(ft)]+1(1/3)*0.494(psi/ft)*8,560(ft)]= 1736 psi MASP from pore pressure during production mode (Complete evacuation to gas) 8,560 (ft) x 0.434(psi/ft)= 3715 psi 3715(psi) - [0.1(psi/ft)*8,560 (ft)]= 2859 psi Summary: 1. MASP while drilling 8-1/2" production hole is governed by pore pressure and evacuation of 2/3 of wellbore to gas at 0.1 psi/ft. Page 46 Version 1 July, 2014 0 Hileorp Energy Company Frances #3 Drilling & Completion Procedure 30.0 Spider Plot (NAD 27) (Governmental Sections) I/ Niniichik unit „u,„, �W Frances #3 1,00 Feet Alaska State Plane Zone 4, NAD27 Map Date: 7:24I2014 Page 47 Version 1 July, 2014 B Hilc�,T Energy 31.0 Surface Plat (As Staked) (NAD 83) F- B.-7, Cap 6QILER CLAi4t AV S6 S a7 7Zr7 .� _ W F PUV44w'.L ES NO, 2 &�, r-RA-4FS NO . 1 4ri 1 POW 1�-, V I N tt � 60-0, 17 FRANCE$ NO' 3 'NELL AS -STAKED NA083 ASP ZONE 4 N:2267074,434 E; 1380055,497 LAT: 60'11'52.733"N II LONG: 151'25'51.478' ELEV,249.WNAVD881 \,2149'FEL 24T FNL 2749FEL' SET CONTROL NT*B Z Num. Cap issr NOTE 11 111111 BARTOLOWITS PAD 1� SEC. 7 TIN, R12W Z a S.M.AK ti U3 2ou I I BASIS OF GFOOE= CONTROL NA083 POStTjON f ' GPOC34 20101 AND ORTHOMETRIC HEIGHT tS AN OPUS SOLLITION FROM NGS COORDINATES STATIONS *ACZ3 5OLDOTNk__A'A20W CORS ARP', 'SELO SFLO_AXOkAK2000 CORS ARP', AND -ACi 7 DRIFTRV)ERAK2(336 CURS ARP' TO ESTABLISH THE POSIT40N OF 'Cr Er EAST OF THE BARTGVYM PAD. THE GEODETIC POSMON OF GP8 WAS. DIETERIAWED TO HAVE A LATITUDE OF 60'I 14S 91836—N AND A L40NGITUDE OF 1 51'2542.9385 1"N. THEALASM STATE PLANE COOMNATES IASP} ZONE 4 ARE N-22E8370.327 E=13W4W867 ELEV 259.0SV(NAV08BOECXD1;W ,-SECTION LINE OFFSETS DETERMINED FROM MONUMENTED `kLCTION CORNER VALUE& Frances #3 Drilling & Completion Procedure Fnd "sa Cup OF Ito # ................... 10 .0 10 ................... ............. 0 -JI.M. SCOTT McLA)aE.-'ff,: 4 28-S SCALE M HILCORP ALASKA LTC 3800 CENTERPOINT OR. PRANCES NO. 3 WELL AS -STAKED ANCHORAGE, AK 99503.5826 SURFACE LOCATION DIAGRAM NADI13 ON BARTOLOWFTS PAD Ny« 4_1 DOX A W115 W133401 14x SEC. 7 TIN R12W W1. , wn SEWARD MERIDIAN, ALASKA Page 48 Version 1 July, 2014 32.0 Surface Plat (As Staked) (NAD 27) 1 r1I Pre ®ra.a Gap I Ti_ ER yLA AE 556 —.. ..�. t J N0. 2'PJEIi R9 ` RAWf F,S NO i'lJRw [[ N ff,crmil`----�i �• ES' 2749'FEL PRANCES NO.3 WELL AS -STAKED NAD27 ASP ZONE 4 N.2267312,91 E;240037.32 j LAT; 60"11'54.836N I LONG. 151'25'43.484' VII ELEV. 249.8' NAVD88 �7AW FEL 246' FNL SET CONTROL a JNT irk LL,, fP 2 Aaum. Cap ¢S—.E NOTE 11 inrA.;r JfPit1 BARTOLOVJITS � PAD �' SEC. 7 a T1N. R12W Z a SAI-AK tg f" N low 209 BASIS OF GEOOPX CS3ttTROL NAD33 POSrr3ON (EPOCH 20101 ANI CRTHOMETRIC HEIGHT IS AN OPUS SOLUTION FROM NGS COORDINATES STATIONS'AC23 SOLDOTNA AK2007 COR5 ARf ', 'S61.13 SELD_AKDA_AKM CDR$ ARP'. ANQ `AO17 DR1rTPJVERA142006 CORE ARP' TO ESTABLISH THE POSITION OF 'CPS" EAST OF THE BARTOWITS PAD. THE GEODETIC POSITION OF CPS WAS DErIERMINEID TO HAVE A LATITUDE OF 60°t 14%91810"NW AND A LONGITUDE OF 15-2 '42.9385INV. THE ALASKA STATE PLANE COORDINATES IASPI ZONE 4 ARE N-226677g.327 E=13W480 887 ELEV. 259,056 (NA'J 6 GEO`£D11Ai 2) SECTION LINE OFFSETS DETERMINED FROM MONUMENTED SECTION CORNER VALUES. 3} NAD83 COORt)WATES CONVERTED TONAD27%%9TH CORPS, CAN CONVERSION SOVIAVAAE VF"ION 6.01, Frances #3 Drilling & Completion Procedure Fnd B•am Cap 5. f I 0-F—R, I49 l i r *'j 9 j �� 0....... ........................i / 'd •.M SSCOTT NC?RTH 4928S SCALE aca Ml1wIlk rrrr HILCCpRP ALASKA L1 C r Pax 3800 CENTERPOINT DR, °^� ^� FRANCES NO.3 WELL AS -STAKED ANCHORAGE. AK. M03.5826 SURFACE LOCATION DIAGRAM NAD27 Al �T.nr»4a, atr ON BARTOLOWFTS PAD VrImx Rn Pcr Z 4Y7 •^ Lw:a•Et�ml •u VAS 4Cfr.S`w TriiKi W-"N., ru y L«. �.A±': aA Lv. 4" 6X6 a3tl R71L.C'S4i iY i* ,�CwFr3'+ SEC. 7TiN R12W ` " :a "` 1 mor• SEWARD MERIDIAN, ALASKA Page 49 Version 1 July, 2014 Frances #3 Drilling & Completion Procedure HilmiT Energy Company 33.0 Offset MW vs TVD Chart Frances #3 Offset Wells a 1000 200D 3000 4004 50M 6000 x in 7000 sow 1�OD0 11wo 12mo 13 14,000 99 10 11 12 13 14 15 Mud Weight [PPG) Page 50 Version 1 July, 2014 Hilcorp Energy Company Ninilchik Unit Bartolowits Pad Frances #3 Frances #3 Plan: Frances #3 wp1.0 Standard Proposal Report 24 June, 2014 HALLIBURTON Sperry Drilling Services HALLIBURTON Sperry Oritiinrg Project., Ninilchik Unit Site: Bartolowits Pad Well: Frances #3 Wellbore: Frances #3 Frances #3 wp1.0 COMPANY DETAILS: Hilcorp Energy Company Calculation Method: Minimum Curvature Error System: ISCWSA Scan Method: Closest Approach 3D Error Surface: Elliptical Conic Warning Method: Error Ratio CASING DETAILS TVD TVDSS MD Name Size 3383.90 3123.90 3600.00 9-5/8 9 5/8" 8560.00 8300.00 9481.37 5-1/2 51/2" w 0 0 r 0 0 0 0 WELL DE, .,: Frances #3 Ground Level: 260.00 +N/-S +E/-W Northing Easting Latittude Longitude Slot 0.00 0.00 2267312.90 240047.00 60.19856547-151.42869235 SECTION DETAILS Sec MD Inc Azi TVD TVDSS +N/-S +E/-W DLeg. TFace VSec Target 1 0.00 0.00 0.00 0.00-260.00 0.00 0.00 0.00 0.00 0.00 2 1400.00 0.00 0.00 1400.00 1140.00 0.00 0.00 0.00 0.00 0.00 3 2432.64 30.98 263.13 2383.06 2123.06 -32.60-270.48 3.00 263.13 272.39 4 8146.49 30.98 263.13 7281.85 7021.85-384.48-3190.43 0.00 0.00 3213.01 5 8620.48 12.72 248.09 7720.23 7460.23-418.86-3361.50 4.00-169.88 3387.19 6 8670.48 12.72 248.09 7769.00 7509.00-422.96-3371.72 0.00 0.00 3397.87 Frances#3-T60 7 9481.37 12.72 248.09 8560.00 8300.00-489.56-3537.32 0.00 0.00 3571.03 Frances#3-TD SURVEY PROGRAM Date: 2014-06-24T00.00.00 Validated: Yes Version: Depth From Depth To Survey/Plan Tool 0.00 3600.00 Frances #3 wpl.0 (Frances #3) MWD+SC+sag 3600.00 9481.37 Frances #3 wpl.0 (Frances #3) MWD+SC+sag REFERENCE INFORMATION Co-ordinate (N/E) Reference: Well Frances #3, True North Vertical (TVD) Reference: Prelim KB @ 260.00usft Measured Depth Reference: Prelim KB @ 260.00usft Calculation Method: Minimum Curvature -3967 -3733 -3500 -3267 -3033 -2800 -2567 -2333 -2100 -1867 -1633 -1400 -1167 -933 -700 -467 -233 0 233 467 700 933 West( -)/East(+) (700 ust7/in) O w N 7 N mN J CD a m v O.N m m ry mw C,4J rn 0>0> O O » lL w a 922 J > } W Q NCO j C J 2 N U c N N J O W p j (D O U U O O mO } g ACV N M MM Z r d 00 N N > Z c c � p U LL LL >>O >O p H OM W + O aO m O M � N O O U O (o E O O O O O Z + LL O O L M N ❑ � ❑ N aDN N ln� Urnw ❑ N M N m N E(n� Zm6 c2 y U m � c �oM n E U aoo EQaUm om U =m� m �� Edo EUoao H 2 � U U W W W ❑ c W a E v Wi t«0m0 (7 2 �! U) (n00 Q (n M o 2 O U ❑N po tc(i�m 3 o po U ~w co M W t O Z w � N J J 0 0 2 M(oo itNN 2 cmmTYYE LL E E E c cc= N 2 N N N2 w K cc worm ? 00 .� O N > V U � r- mM N U U o) m m H li LL U 0001 0 rM NNM McO M M M M w o o M O m 0 0 000,Om00 00(B00)00 N m0000000 d0000000 l o o m o v o o mo 00)r 000 YO O m O M 0 0 r N m r n O m o on�crom� W OOmww cow N N N N N N N mo Orc m00 cmo)W00 Y N N w r w M 0 U mmwwo O" N O M m m J Z r w m w w wwwmwwm H N N N N N N N LU Z O O O m M O N N H 0 0 V V O r M U W o00o�.-n W + r m w r M U N h M M M � O O w 7 OR m c Z O O N V m N M + M v V V U 0 0 w N M 0 0 Cn 0 0 0 m N 0 0 ❑ O O M— O m o �w N N m 0 0 N��O V cOM N r r r m ❑OOmc0M00 O OOm N00 ow m N m m } M N r N r r lw m O0 O M M .0 m 0 0 00 C0('M0 N CON N N N N N U O O m m N N N coOmrnrrr, O O M M ❑oovmmmr 00 N0000� O M 7 N r m N M m d Cn�NM vcn mr O O O O O O O l0 Q c0 O c0 Q r 0 N o r O N N M m 7 n O O O O o r w w ❑ ❑ U co w w V W V O r O N co O `O m F- m U O O O O p L t W o m J O ❑ uoi w r r m m C/) (0 U) 1 I II O rn O W U) r CD O w _ _C o N U, 3 N p O uO 0 N 0 `f N N o m or) O U CD O fd o U O — M i i O N O O l0 N O O O c0 O N N O r m O) O) (uip}sn ppg�) y}da4 leai;aan anil HALLIBURTON Database: Sperry EDM - NORTH US + CANADA Company: Hilcorp Energy Company Project: Ninilchik Unit Site: Bartolowits Pad Well: Frances 43 Wellbore: Frances #3 Design: Frances #3 wpl .0 Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Halliburton Standard Proposal Report Well Frances #3 Prelim KB @ 260.00usft Prelim KB @ 260.00usft True . Minimum Curvature Project Ninilchik Unit Map System: US State Plane 1927 (Exact solution) System Datum: Mean Sea Level aeo Datum: NAD 1927 (NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Using geodetic scale factor Site Bartolowits Pad Site Position: Northing: 2,267,300.00usft Latitude: 60.19852741 From: Map Easting: 240,000.00usft Longitude: -151.42894903 Position Uncertainty: 0.00 usft Slot Radius: 13-3/16" Grid Convergence: -1.24 ° Well Frances #3 Well Position +N/-S 0.00 usft Northing: 2,267,312.90 usft Latitude: 60.19856547 +E/-W 0.00 usft Easting: 240,047.00 usft Longitude: -151.42869235 Position Uncertainty 0.00 usft Wellhead Elevation: 0.00 usft Ground Level: 260.00 usft Wellbore Frances #3 Magnetics Model Name Sample Date Declination Dip Angle Field Strength (°) (°) (nT) BGGM2014 8/24/2014 16.71 73.21 55,240 Design Frances #3 wpl.0 Audit Notes: Version: Phase: PLAN Tie On Depth: 0.00 Vertical Section: Depth From (TVD) +N/-S +E/-W Direction (usft) (usft) (usft) (°) 0.00 0.00 0.00 262.12 Plan Sections Measured Vertical TVD Dogleg Build Turn Depth Inclination Azimuth Depth System +N/-S +El-W Rate Rate Rate Tool Face (usft) (°) (°) (usft) usft (usft) (usft) (°/100usft) (°1100usft) (°/100usft) (°) 0.00 0.00 0.00 0.00 -260.00 0.00 0.00 0.00 0.00 0.00 0.00 1,400.00 0.00 0.00 1,400.00 1,140.00 0.00 0.00 0.00 0.00 0.00 0.00 2,432.64 30.98 263.13 2,383.06 2,123.06 -32.60 -270.48 3.00 3.00 0.00 263.13 8,146.49 30.98 263.13 7,281.85 7,021.85 -384.48 -3,190.43 0.00 0.00 0.00 0.00 8,620.48 12.72 248.09 7,720.23 7,460.23 -418.86 -3,361.50 4.00 -3.85 -3.17 -169.88 8,670.48 12.72 248.09 7,769.00 7,509.00 -422.96 -3,371.72 0.00 0.00 0.00 0.00 9,481.37 12.72 248.09 8,560.00 8,300.00 -489.56 -3,537.32 0.00 0.00 0.00 0.00 6/24/2014 6:11:03PM Page 2 COMPASS 5000.1 Build 70 i Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Well Frances #3 Company: Hilcorp Energy Company TVD Reference: Prelim KB @ 260.00usft Project: Ninilchik Unit MD Reference: Prelim KB @ 260.00usft Site: Bartolowits Pad North Reference: True Well: Frances #3 Survey Calculation Method: Minimum Curvature Wellbore: Frances #3 Design: Frances #3 wp1.0 Planned Survey 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) -260.00 0.00 0.00 0.00 0.00 -260.00 0.00 0.00 2,267,312.90 240,047.00 0.00 0.00 100.00 0.00 0.00 100.00 -160.00 0.00 0.00 2,267,312.90 240,047.00 0.00 0.00 200.00 0.00 0.00 200.00 -60.00 0.00 0.00 2,267,312.90 240,047.00 0.00 0.00 300.00 0.00 0.00 300.00 40.00 0.00 0.00 2,267,312.90 240,047.00 0.00 0.00 400.00 0.00 0.00 400.00 140.00 0.00 0.00 2,267,312.90 240,047.00 0.00 0.00 500.00 0.00 0.00 500.00 240.00 0.00 0.00 2,267,312.90 240,047.00 0.00 0.00 600.00 0.00 0.00 600.00 340.00 0.00 0.00 2,267,312.90 240,047.00 0.00 0.00 700.00 0.00 0.00 700.00 440.00 0.00 0.00 2,267,312.90 240,047.00 0.00 0.00 800.00 0.00 0.00 800.00 540.00 0.00 0.00 2,267,312.90 240,047.00 0.00 0.00 900.00 0.00 0.00 900.00 640.00 0.00 0.00 2,267,312.90 240,047.00 0.00 0.00 1,000.00 0.00 0.00 1,000.00 740.00 0.00 0.00 2,267,312.90 240,047.00 0.00 0.00 1,100.00 0.00 0.00 1,100.00 840.00 0.00 0.00 2,267,312.90 240,047.00 0.00 0.00 1,200.00 0.00 0.00 1,200.00 940.00 0.00 0.00 2,267,312.90 240,047.00 0.00 0.00 1,300.00 0.00 0.00 1,300.00 1,040.00 0.00 0.00 2,267,312.90 240,047.00 0.00 0.00 1,400.00 0.00 0.00 1,400.00 1,140.00 0.00 0.00 2,267,312.90 240,047.00 0.00 0.00 1,500.00 3.00 263.13 1,499.95 1,239.95 -0.31 -2.60 2,267,312.64 240,044.40 3.00 2.62 1,600.00 6.00 263.13 1,599.63 1,339.63 -1.25 -10.39 2,267,311.87 240,036.59 3.00 10.46 1,700.00 9.00 263.13 1,698.77 1,438.77 -2.81 -23.34 2,267,310.59 240,023.60 3.00 23.51 1,800.00 12.00 263.13 1,797.08 1,537.08 -4.99 -41.44 2,267,308.80 240,005.47 3.00 41.73 1,900.00 15.00 263.13 1,894.31 1,634.31 -7.79 -64.61 2,267,306.51 239,982.24 3.00 65.07 2,000.00 18.00 263.13 1,990.18 1,730.18 -11.18 -92.80 2,267,303.73 239,953.98 3.00 93.46 2,100.00 21.00 263.13 2,084.43 1,824.43 -15.18 -125.94 2,267,300.45 239,920.76 3.00 126.83 2,200.00 24.00 263.13 2,176.81 1,916.81 -19.76 -163.93 2,267,296.70 239,882.68 3.00 165.09 2,300.00 27.00 263.13 2,267.06 2,007.06 -24.91 -206.67 2,267,292.47 239,839.85 3.00 208.13 2,400.00 30.00 263.13 2,354.93 2,094.93 -30.61 -254.03 2,267,287.79 239,792.37 3.00 255.83 2,432.64 30.98 263.13 2,383.06 2,123.06 -32.60 -270.48 2,267,286.17 239,775.89 3.00 272.39 2,500.00 30.98 263.13 2,440.81 2,180.81 -36.74 -304.90 2,267,282.76 239,741.38 0.00 307.06 2,600.00 30.98 263.13 2,526.54 2,266.54 42.90 -356.00 2,267,277.71 239,690.16 0.00 358.52 2,700.00 30.98 263.13 2,612.28 2,352.28 -49.06 -407.11 2,267,272.66 239,638.94 0.00 409.99 2,800.00 30.98 263.13 2,698.01 2,438.01 -55.22 458.21 2,267,267.61 239,587.71 0.00 461.45 2,900.00 30.98 263.13 2,783.75 2,523.75 -61.38 -509.31 2,267,262.56 239,536.49 0.00 512.92 3,000.00 30.98 263.13 2,869.48 2,609.48 -67.54 -560.41 2,267,257.51 239,485.27 0.00 564.38 3,100.00 30.98 263.13 2,955.22 2,695.22 -73.69 -611.52 2,267,252.46 239,434.05 0.00 615.85 3,200.00 30.98 263.13 3,040.95 2,780.95 -79.85 -662.62 2,267,247.40 239,382.82 0.00 667.31 3,300.00 30.98 263.13 3,126.69 2,866.69 -86.01 -713.72 2,267,242.35 239,331.60 0.00 718.78 3,400.00 30.98 263.13 3,212.43 2,952.43 -92.17 -764.83 2,267,237.30 239,280.38 0.00 770.24 3,500.00 30.98 263.13 3,298.16 3,038.16 -98.33 -815.93 2,267,232.25 239,229.15 0.00 821.71 3,600.00 30.98 263.13 3,383.90 3,123.90 -104.49 -867.03 2,267,227.20 239,177.93 0.00 873.17 95181, 3,700.00 30.98 263.13 3,469.63 3,209.63 -110.65 -918.14 2,267,222.15 239,126.71 0.00 924.64 3,800.00 30.98 263.13 3,555.37 3,295.37 -116.80 -969.24 2,267,217.10 239,075.48 0.00 976.10 3,900.00 30.98 263.13 3,641.10 3,381.10 -122.96 -1,020.34 2,267,212.05 239,024.26 0.00 1,027.57 4,000.00 30.98 263.13 3,726.84 3,466.84 -129.12 -1,071.45 2,267,207.00 238,973.04 0.00 1,079.03 4,100.00 30.98 263.13 3,812.57 3,552.57 -135.28 -1,122.55 2,267,201.94 238,921.81 0.00 1,130.50 4,200.00 30.98 263.13 3,898.31 3,638.31 -141.44 -1,173.65 2,267,196.89 238,870.59 0.00 1,181.96 612412014 6:11:03PM Page 3 COMPASS 5000.1 Build 70 Halliburton H L L 1 B U R TO N Standard Proposal Report Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Well Frances #3 Company: Hilcorp Energy Company TVD Reference: Prelim KB @ 260.00usft Project: Ninilchik Unit MD Reference: Prelim KB @ 260.00usft Site: Bartolowits Pad North Reference: True Well: Frances #3 Survey Calculation Method: Minimum Curvature Wellbore: Frances #3 Design: Frances #3 wpl .0 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (usft) (1) (1) (usft) usft (usft) (usft) (usft) (usft) 3,724.04 4,300.00 30.98 263.13 3,984.04 3,724.04 -147.60 -1,224.75 2,267,191.84 238,819.37 0.00 1,233.42 4,400.00 30.98 263.13 4,069.78 3,809.78 -153.76 -1,275.86 2,267,186.79 238,768.14 0.00 1,284.89 4,500.00 30.98 263.13 4,155.51 3,895.51 -159.91 -1,326.96 2,267,181.74 238,716.92 0.00 1,336.35 4,600.00 30.98 263.13 4,241.25 3,981.25 -166.07 -1,378.06 2,267,176.69 238,665.70 0.00 1,387.82 4,700.00 30.98 263.13 4,326.99 4,066.99 -172.23 -1,429.17 2,267,171.64 238,614.47 0.00 1,439.28 4,800.00 30.98 263.13 4,412.72 4,152.72 -178.39 -1,480.27 2,267,166.59 238,563.25 0.00 1,490.75 4,900.00 30.98 263.13 4,498.46 4,238.46 -184.55 -1,531.37 2,267,161.53 238,512.03 0.00 1,542.21 5,000.00 30.98 263.13 4,584.19 4,324.19 -190.71 -1,582.48 2,267,156.48 238,460.80 0.00 1,593.68 5,100.00 30.98 263.13 4,669.93 4,409.93 -196.86 -1,633.58 2,267,151.43 238,409.58 0.00 1,645.14 5,200.00 30.98 263.13 4,755.66 4,495.66 -203.02 -1,684.68 2,267,146.38 238,358.36 0.00 1,696.61 5,300.00 30.98 263.13 4,841.40 4,581.40 -209.18 -1,735.78 2,267,141.33 238,307.14 0.00 1,748.07 5,400.00 30.98 263.13 4,927.13 4,667.13 -215.34 -1,786.89 2,267,136.28 238,255.91 0.00 1,799.54 5,500.00 30.98 263.13 5,012.87 4,752.87 -221.50 -1,837.99 2,267,131.23 238,204.69 0.00 1,851.00 5,600.00 30.98 263.13 5,098.60 4,838.60 -227.66 -1,889.09 2,267,126.18 238,153.47 0.00 1,902.47 5,700.00 30.98 263.13 5,184.34 4,924.34 -233.82 -1,940.20 2,267,121.13 238,102.24 0.00 1,953.93 5,800.00 30.98 263.13 5,270.07 5,010.07 -239.97 -1,991.30 2,267,116.07 238,051.02 0.00 2,005.40 5,900.00 30.98 263.13 5,355.81 5,095.81 -246.13 -2,042.40 2,267,111.02 237,999.80 0.00 2,056.86 6,000.00 30.98 263.13 5,441.54 5,181.54 -252.29 -2,093.51 2,267,105.97 237,948.57 0.00 2,108.33 6,100.00 30.98 263.13 5,527.28 5,267.28 -258.45 -2,144.61 2,267,100.92 237,897.35 0.00 2,159.79 6,200.00 30.98 263.13 5,613.02 5,353.02 -264.61 -2,195.71 2,267,095.87 237,846.13 0.00 2,211.26 6,300.00 30.98 263.13 5,698.75 5,438.75 -270.77 -2,246.82 2,267,090.82 237,794.90 0.00 2,262.72 6,400.00 30.98 263.13 5,784.49 5,524.49 -276.92 -2,297.92 2,267,085.77 237,743.68 0.00 2,314.19 6,500.00 30.98 263.13 5,870.22 5,610.22 -283.08 -2,349.02 2,267,080.72 237,692.46 0.00 2,365.65 6,600.00 30.98 263.13 5,955.96 5,695.96 -289.24 -2,400.12 2,267,075.66 237,641.23 0.00 2,417.12 6,700.00 30.98 263.13 6,041.69 5,781.69 -295.40 -2,451.23 2,267,070.61 237,590.01 0.00 2,468.58 6,800.00 30.98 263.13 6,127.43 5,867.43 -301.56 -2,502.33 2,267,065.56 237,538.79 0.00 2,520.05 6,900.00 30.98 263.13 6,213.16 5,953.16 -307.72 -2,553.43 2,267,060.51 237,487.56 0.00 2,571.51 7,000.00 30.98 263.13 6,298.90 6,038.90 -313.88 -2,604.54 2,267,055.46 237,436.34 0.00 2,622.98 7,100.00 30.98 263.13 6,384.63 6,124.63 -320.03 -2,655.64 2,267,050.41 237,385.12 0.00 2,674.44 7,200.00 30.98 263.13 6,470.37 6,210.37 -326.19 -2,706.74 2,267,045.36 237,333.90 0.00 2,725.91 7,300.00 30.98 263.13 6,556.10 6,296.10 -332.35 -2,757.85 2,267,040.31 237,282.67 0.00 2,777.37 7,400.00 30.98 263.13 6,641.84 6,381.84 -338.51 -2,808.95 2,267,035.26 237,231.45 0.00 2,828.83 7,500.00 30.98 263.13 6,727.57 6,467.57 -344.67 -2,860.05 2,267,030.20 237,180.23 0.00 2,880.30 7,600.00 30.98 263.13 6,813.31 6,553.31 -350.83 -2,911.16 2,267,025.15 237,129.00 0.00 2,931.76 7,700.00 30.98 263.13 6,899.05 6,639.05 -356.99 -2,962.26 2,267,020.10 237,077.78 0.00 2,983.23 7,800.00 30.98 263.13 6,984.78 6,724.78 -363.14 -3,013.36 2,267,015.05 237,026.56 0.00 3,034.69 7,900.00 30.98 263.13 7,070.52 6,810.52 -369.30 -3,064.46 2,267,010.00 236,975.33 0.00 3,086.16 8,000.00 30.98 263.13 7,156.25 6,896.25 -375.46 -3,115.57 2,267,004.95 236,924.11 0.00 3,137.62 8,100.00 30.98 263.13 7,241.99 6,981.99 -381.62 -3,166.67 2,266,999.90 236,872.89 0.00 3,189.09 8,146.49 30.98 263.13 7,281.85 7,021.85 -384.48 -3,190.43 2,266,997.55 236,849.07 0.00 3,213.01 8,200.00 28.87 262.35 7,328.22 7,068.22 -387.85 -3,216.91 2,266,994.75 236,822.53 4.00 3,239.71 8,300.00 24.96 260.57 7,417.37 7,157.37 -394.52 -3,261.67 2,266,989.05 236,777.64 4.00 3,284.96 8,400.00 21.06 258.19 7,509.40 7,249.40 -401.66 -3,300.08 2,266,982.75 236,739.07 4.00 3,323.99 8,500.00 17.22 254.79 7,603.85 7,343.85 -409.22 -3,331.97 2,266,975.88 236,707.03 4.00 3,356.62 8,600.00 13.47 249.54 7,700.28 7,440.28 -417.18 -3,357.18 2,266,968.47 236,681.66 4.00 3,382.67 612412014 6:11:03PM Page 4 COMPASS 5000.1 Build 70 HALLIBURTON Halliburton Standard Proposal Report Database: Company: Project: Site: Well: Wellbore: Design: Sperry EDM - NORTH US + CANADA Hilcorp Energy Company Ninilchik Unit Bartolowits Pad Frances #3 Frances #3 Frances #3 wpl .0 Local Co-ordinate Reference: Well Frances #3 TVD Reference! Prelim KB @ 260.00usft MD Reference: Prelim KB @ 260.00usft North Reference: True Survey Calculation Method: Minimum Curvature Planned Survey 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) 7,460.23 8,620.48 12.72 248.09 7,720.23 7,460.23 -418.86 -3,361.50 2,266,966.88 236,677.30 4.00 3,387.19 8,670.48 12.72 248.09 7,769.00 7,509.00 -422.96 -3,371.72 2,266,963.00 236,667.00 0.00 3,397.87 8,700.00 12.72 248.09 7,797.79 7,537.79 -425.39 -3,377.74 2,266,960.71 236,660.92 0.00 3,404.17 8,800.00 12.72 248.09 7,895.34 7,635.34 -433.60 -3,398.17 2,266,952.94 236,640.33 0.00 3,425.52 8,900.00 12.72 248.09 7,992.89 7,732.89 -441.81 -3,418.59 2,266,945.17 236,619.73 0.00 3,446.88 9,000.00 12.72 248.09 8,090.44 7,830.44 -450.03 -3,439.01 2,266,937.40 236,599.14 0.00 3,468.24 9,100.00 12.72 248.09 8,187.98 7,927.98 -458.24 -3,459.43 2,266,929.63 236,578.54 0.00 3,489.59 9,200.00 12.72 248.09 8,285.53 8,025.53 -466.45 -3,479.85 2,266,921.86 236,557.95 0.00 3,510.95 9,300.00 12.72 248.09 8,383.08 8,123.08 -474.67 -3,500.28 2,266,914.09 236,537.35 0.00 3,532.30 9,400.00 12.72 248.09 8,480.62 8,220.62 -482.88 -3,520.70 2,266,906.32 236,516.76 0.00 3,553.66 9,481.37 12.72 248.09 8,560.00 , 8,300.00 -489.56 -3,537.32 2,266,900.00 236,500.00 0.00 3,571.03 5 1/2" Targets Target Name hit/miss target Dip Angle Dip Dir. TVD +N/-S +E/-W Northing Easting Shape (°) (°) (usft) (usft) (usft) (usft) (usft) Frances#3-T60 0.00 000 7,769.00 -422.96 -3,371.72 2,266,963.00 236,667.00 plan hits target center Point Frances#3-TD 0.00 0.00 8,560.00 489.56 -3,537.32 2,266,900.00 236,500.00 plan hits target center Point Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (usft) (usft) Name O ( ) 3,600.00 3,383.90 95/8" 9-5/8 12-1/4 9,481.37 8,560.00 51/2" 5-1/2 8-1/2 612412014 6:11:03PM Page 5 COMPASS 5000.1 Build 70 �^V i.i E 0 V L W .a T Z m LL LL CD T" Q M m V L LL N ME cl a L L d a N �% -t m 0 A+ E 61� cn 0 V ■� i 0 m .� V N N 3 a RE M. �] El rn c `cc 0 C CL N N N N N N N N N N N N N N N N N N f6 (Q N f6 N N W (a N N f0 f6 c 0 a d cc E N O O O O O C O O C O O l0 1 La n W a a W N U U U U � 0 E C C N N N N N f6 C N (9 G N (6 N N C CL C C1 N N Q N C1 N U) U W U U W U W U W U CO CO CO O O U LO r N N n N (><7 r M N r V r u N LL U a co W co N co Ln m In m O LO o rn co rl� M d V M V M O r V' N � .0 O. N M M N M M V V LO V V h (O V V V coU, (❑ l0 m V 0 LO O m C O O O O V N CO 0 0 M CO O O 0 0 CO CO V '7 O CEO 00 CL W N N r O O O O O O O a V O O V O O O O �2 O N Ln LO N LO (O O O L N N N N V O SO (O N N M moo_, d � M al r- r; o o N r c O C y C aai j 0 LO r 0 0 r O O O O M O o I C C y N t0 (O N (L) LO O O r- (O N N N N V' V Ln V 'Q l0 O (O V V O N N M M W N 7 # G Q r- cc m K y m I N C �: LL N j c I y � N N � U , C co co I LL L O O) C1 Cl LO # 0 O O O Y Y W m m m N N °i d d d 3 3 U LL m U A N d) Z N N N N N N N LL N UC ` .- N N N U U U # # N t6 O y N W W y U N 7 LL lL LL m m m m LL LL N N L. N E d d d N N U N N ' O N N �T (6 Q1 Z (Q N N N N N N U U U U U U N N U U N 76 o m m C G C C C C C C LL LL c N LL LL lL LL LL LL LL LL Y (n (O o c = d # # O N d Y Y N C # # # # # # # # N F a � Z a O O O (U u N U U U E C C C C C C C C M N C w ..p.. p fC (9 2 N f6 22 N N (0 (6 F N f!1 U m LL LL LL LL LL LL LL LL LL LL LL wc c G U U It U cn O F- w CD m m 0 w N N U U +0 U o O o � O M O O o7 F N (0- � co 0) o 0 O O O O O (Col LL 7 M w V _rn V N Q 0 W. 0 CD 0 >>_ O O Y 0] � d o U (V N > N Z 0 LL c 3k 2 Y CD w (n N 8N s C : M ULL ti Il � 5 Y CO C C C N C L1WL LL LL UU U - 1 4� Z3 O ^O I..L lO L Q� Q M C� G Ln p U' p CD I- co r (ui/jjsn 05£) uoijeaedag ailuao of aijuao co I I 1 I I I I I I I I I I I I I I I I I I I p I I I I I I I I I i I I I I I I I I I I I I I I I I p I I I CZ) O I I I I I I I I I I I I I I I I I I I I I I i I I I I p I I I I p I I I L{') I I I I I I I I I I I I I I I I I I i I I I I CD I I I I p I I I I I I I I I I I I I I i I 1 I I I I I I I p I I I I p I I I I I I I I I 1 I I I I I I I I I I I I I CD a O U R a O N h Q O a O U R a O N h Q O W. 2 L® r Ix M3 J J I O r^ C 3 M N V C L M w� W V ca L LL L 0 O Q. 6 .2 c El O a O u a z W CD ui J CD I � I : i O co I. LO - _ o : it -----___ In -- O i I LO v I � 1 : — M C I i i Oo O I I I I 0 I a� U _ O 0 T Ln _- co- o S ! Q U) o c o o o O O O LO O U) O O O r UU N O n In N O O 06 r co U] CM N O (u!/ 09-7) joioe-i uoileiedec a O M. ,It O I L _c' I.`. __. 1. !. i �- L L : li (. 1 w_L'� t. �: �.t 1I!EH, h"AME: V%�%'GZ i2 L;C� S 3 V uCtCUr,,:"icC.t sC-:;,. ice' S.r"tF fG i`F Sara irwa Phic. Test C.l nvc-r, fC;("1 clic-c a i c'G %-'G / h. to Lie ` clude6- in b ra,€esmr—I.-zi Let,'%F ;EM CO V-1 QGNS_ E2t", MR APPROVAL eGZifEP. MULTI LATERAL The permit is for a new wellbore segment of existing well Permit (If last two digits N'o. , API No. 50- - - - in API number are Production should continue to be reported as a function of the original between 60-69) API number stated above. In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name Pilot Hole ( PH) and API number (50- - - - ) from 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 Spacing Exception conservation 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 permit: Production or production testing of coal bed methane is not allowed for Non -Conventional Lame 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 Well Logging also required for this well: 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 days after completion, suspension or abandonment of this well. Revised 4/2014 WELL PERMIT CHECKLIST Field & Pool NINILCHIK, FC BELUGA UNDEF GAS - 562505 PTD#:2141230 Company HILCORP ALASKA LLC NINILCHIK, FC TYONEK UNDE Well Name: FRANCES 3 Program DEV Well bore seg Initial Class/Type DEV / PEND GeoArea 820 Unit 51432 On/Off Shore On Annular Disposal Administration 1 Permit fee attached NA 2 Lease number appropriate No Surface location and top of productive interval lie beneath private lands; portion of productive interval 3 Unique well name and number Yes lies beneath FEDA024399; TD lies in ADL000590. Additions made to Form 10-401. SFD 8-15-2014 4 Well located in a defined pool No NINILCHIK, FC BELUGA UNDEF GAS - 562505 and NINILCHIK, FC TYONEK UNDEF GAS - 562510 5 Well located proper distance from drilling unit boundary No SPACING EXCEPTION OR POOL RULES REQUIRED: Hearing for spacing exception scheduled for Sept 9th. 6 Well located proper distance from other wells No If Ninilchik Pool Rules are approved prior to that hearing, the revised spacing requirements therein 7 Sufficient acreage available in drilling unit No will render moot the need for a spacing exception. SFD 8/15/2014 8 If deviated, is wellbore plat included Yes 9 Operator only affected party No SPACING EXCEPTION OR POOL RULES REQUIRED 10 Operator has appropriate bond in force Yes 11 Permit can be issued without conservation order No SPACING EXCEPTION OR POOL RULES REQUIRED Appr Date 12 Permit can be issued without administrative approval Yes 13 Can permit be approved before 15-day wait Yes SFD 8/15/2014 14 Well located within area and strata authorized by Injection Order # (put 10# 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 set at 80 ft (driven) Engineering 19 Surface casing protects all known USDWs Yes 9 5/8" surface casing will be set at 3600 ft md. (3385 ft TVD) 20 CMT vol adequate to circulate on conductor & surf csg Yes Surface casing volumes adequate to fully cement. 21 CMT vol adequate to tie-in long string to surf csg Yes 5.5" casing will be cemented to 3100 ft.. Cement packer. 22 CMT will cover all known productive horizons Yes 23 Casing designs adequate for C, T, B & permafrost Yes BTC calculations provided.. Meet industry standards for SF. 24 Adequate tankage or reserve pit Yes Rig has steel pits... all waste to the KGF G & 1 25 If a re -drill, has a 10-403 for abandonment been approved NA Grassroots well. 26 Adequate wellbore separation proposed Yes Proximity analysis performed... adequate clearance in plan. 27 If diverter required, does it meet regulations Yes Diverter waiver denied. Rig will provide-16" diverter line and knife valve. Appr Date 28 Drilling fluid program schematic & equip list adequate Yes Max formation press= 3715 psi (8.3 ppg EMW) Will drill with 9.5 ppg mud. GLS 8/27/2014 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 = 2860 psi Will test BOPE to 3500 psi 31 Choke manifold complies w/API RP-53 (May 84) Yes 32 Work will occur without operation shutdown Yes Workover rig will move in to run tubing/ packer and complete well. Sundry required. 33 Is presence of H2S 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 reported for offset wells. Geology 36 Data presented on potential overpressure zones Yes Planned mud weights appear adequate to control the operator's forecast of most likely pore pressures Appr Date 37 Seismic analysis of shallow gas zones NA in the operator's geologic prognosis. No abnormally geo-pressured strata are anticipated. SFD 8/15/2014 38 Seabed condition survey (if off -shore) NA - - - 39 Contact name/phone for weekly progress reports [exploratory only] NA Geologic Engineering Public SPACING EXCEPTION OR POOL RULES REQUIRED... Diverter waiver denied... will require 16" diverter line. GIs Commissioner: Date: Commissioner: Date Commissioner Date