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214-129
CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. From:McLellan, Bryan J (OGC) To:Ryan Rupert Cc:Dan Marlowe; Donna Ambruz; Roby, David S (OGC); Regg, James B (OGC); Boyer, David L (OGC) Subject:RE: SRU 214-27 Conductor removal Date:Wednesday, July 13, 2022 4:01:00 PM Ryan, A PTD was issued for this well, permit number 214-129 (under well name SRU 41B-33), but the permit expired and therefore revoked. As such, we don’t need a sundry, nor do we require a marker plate. No sundry is required, but please send us a note with a report of what was done, conductor diagram, any relevant attachments, and any photos of the location and cutoff. That way we can close the loop in our files. Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, AK 99501 Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Ryan Rupert <Ryan.Rupert@hilcorp.com> Sent: Monday, July 11, 2022 1:07 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Cc: Dan Marlowe <dmarlowe@hilcorp.com>; Donna Ambruz <dambruz@hilcorp.com> Subject: SRU 214-27 Conductor removal Bryan- Hilcorp is planning on removing the SRU 214-27 conductor per the attached program. The well was never drilled. I don’t believe a 403 is required for this, but wanted to confirm? Any other paperwork that AOGCC would need after all done? (404, etc…) Ryan Rupert Kenai Ops Engineer (#13088) 907-301-1736 (Cell) 907-777-8503 (Office) The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are herebynotified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Wednesday, March 01, 2017 1:26 PM To: Monty Myers Cc: Davies, Stephen F (DOA); Schwartz, Guy L (DOA) Subject: PTD 214-129, SRU 4113-33 Hello Monty, Permit to Drill 214-129, for SRU 4113-33, issued 19 February 2015 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. THE STATE °fALASKA GOVERNOR BILL WALKER Monty Mack Myers Drilling Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 f Alaska Oil and Gas Conservation Commission Re: Swanson River Field, Tyonek Undefined Gas Pool, SRU 41B-33 Hilcorp Alaska, LLC Permit No: 214-129 Surface Location: 890' FNL, 728' FEL, Sec. 33, T8N, R9W, SM Bottomhole Location: 890' FNL, 728' FEL, Sec. 33, T8N, R9W, SM Dear Mr. Myers: 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. 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. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Cathy . Foerster Chair DATED this _#day of February, 2015. STATE OF ALASKA A. .<A OIL AND GAS CONSERVATION COMIC PERMIT TO DRILL ON M�7 AUG 2 1 2014 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 0 Lateral ❑ Stratigraphic Test ❑ Development- Gas ❑✓ . Service - Supply ❑ Multiple Zone ❑ Coalbed Gas ❑ Gas Hydrates ❑ RedriO ❑ Reentry ❑ Exploratory ❑ Service - WAG ❑ Service - Disp ❑ Geothermal ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket o Single Well ❑ 11. Well Name and Number: Hilcorp Alaska, LLC Bond No. 022035244 SRU 41 B-33 ' 3. Address: 6. Proposed Depth: 12. Field/Pool(s): 3800 Centerpoint Drive Suite 1400 Anchorage AK 99503 MD: 6,500' - TVD: 6,500' Swanson River Tyonek Undef Gas ' 4a. Location of Well (Governmental Section): 7. Property Designation (Lease Number): Surface: 890' FNL, 728' FEL, Sec 33, T8N, R9W, SM, AK A028399 " Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 890' FNL, 728' FEL, Sec 33, T8N, R9W, SM, AK N/A Swanson River Unit 10/8/2014 Total Depth: 9. Acres in Propertv: 14. Distance to Nearest Propertv: 890' FNL, 728' FEL, Sec 33, T8N, R9W, SM, AK ✓ 828 3132' (to western unit boundary) 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above MSL: 174.6 feet 15. Distance to Nearest Well Open Surface: x-346952.502 y- 2465553.014 . Zone-4 GL Elevation above MSL: 156' feet , to Same Pool: 4800' 16, Deviated wells: Kickoff depth: 0 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) G 7.iy Maximum Hole Angle: 0 degrees Downhole: 2600 psi 2hz'o Surface: .15+0 psi 172 3< 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Cond 16" 109 X-56 Weld 80' Surf Surf 80' 80' Driven 12-1/4" 9-5/8" 40 L-80 BTC 3,000' Surf Surf 3,000' 3,000' 263.4bbl / 1478.9ft3 8-1/2" 5-1/2" 17 P-110 DWC/C HT 6,500' Surf Surf 6,500' 6,500' 245.4bbl / 1377.8ft3 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 Q BOP Sketch 0 Drilling Program Q 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 Monty Myers Email rY myerS( ilCorp.com Printed Name Monty Mack Myers Title Drilling Engineer Signatur —� Phone 907-777-8431 Date 8/21/2014 Commission Use Only Permit to Drill ' / JAY �� API Number: .� 3 ' 6L _-`' Permit Approval See cover letter for other Number: ,� 50-I� Date: lJ 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: Q Other: 351D fS, J3e; F f Samples req'd: Yes ❑ No Er �� f y Mud log req'd: Yes❑ No❑ HZS measures: Yes ❑ No [, V Directional svy req'd: Yes ❑ .No Q 'T` (7 �� T- - ` l�� `�` r Spacing exception req'd: Yes F [w� j NoInclination-only svy req'd: Yes [7� No ❑ q' Il APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: / v 'z 7 H Submit Form and Form 10-401 (Revised 10/2012) T it 's li f r 4 orhs from the date of approval (20 AAC 25.005(g)) Attachments in Duplicate Monty Myers Drilling Engineer Hilrnrp Alaska, LLC 3 E C E I V E AUG 2 12014 08/21/14 OGCV AA pp�� �a 0 Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue Anchorage, Alaska 99501 Re: Swanson River Unit 41 B-33 Dear Commissioner, Hilcorp Alaska, LLC P.O. Box 244027 Anchorage, AK 99524-4027 Tel 907 777 8431 Email mmyers@hilcorp.com Enclosed for review and approval is the application for the Permit to Drill the SRU 41 B-33 Development Gas well. SRU 4113-33 is a vertical grassroots development well to be drilled off of the 41-33 pad. Subsurface modelling and seismic interpretation, along with production data, indicates that there is remaining gas reserves stranded in the Tyonek 54-5 thru Tyonek 56-9 sands. This well will be targeting PUD reserves in the Tyonek sands. These existing reserves are not recoverable in existing wellbores due to lack of take points or mechanical condition of other existing wellbores. Drilling operations are expected to commence approximately October 8th, 2014. The Saxon Rig_# 169 will be used to drill the wellbore then run casing and cement. Surface casing will be run to 3,000 MD / 3,000' TVD and cemented to surface to ensure protection of any shallow freshwater 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 and BLM 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. If you have any questions, please don't hesitate to contact myself at 777-8431 or Paul Mazzolini at 777-8369. Sincerely, Monty Myers Drilling Engineer Hilcorp Alaska, LLC Page i of 1 Hilcorp Alaska, LLC SRU 41B-33 Drilling Program Swanson River Field � Appro _ d by; M M Version 0 August Wt', 2014 Hilcorp Energy Company Contents SRU 41 B-33 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.........................................................................................................11 10.0 N/U 21-1/4" 2M Diverter..............................................................................................................12 11.0 Drill 12-1/4" Hole Section.............................................................................................................15 12.0 Run 9-5/8" Surface Casing...........................................................................................................19 13.0 Cement 9-5/8" Surface Casing.....................................................................................................22 14.0 BOP N/U and Test.........................................................................................................................25 15.0 Drill 8-1/2" Hole Section...............................................................................................................26 16.0 Run 5-1/2" Production Casing.....................................................................................................31 17.0 Cement 5-1/2" Production Casing...............................................................................................34 18.0 RDMO............................................................................................................................................37 19.0 BOP Schematic..............................................................................................................................38 20.0 Wellhead Schematic......................................................................................................................39 21.0 Days Vs Depth...............................................................................................................................40 22.0 Geo-Prog........................................................................................................................................41 23.0 Anticipated Drilling Hazards.......................................................................................................42 24.0 Saxon Rig 169 Layout...................................................................................................................44 25.0 FIT Procedure...............................................................................................................................45 26.0 Choke Manifold Schematic..........................................................................................................46 27.0 Casing Design Information...........................................................................................................47 -38:0 $-3, (. Iole Section HASP............ :... - :.: :.... ......:. ... - ......48 29-. -Spider Plot {NAD 27) . .............................4 - - - . 30.0 Surface Plat (As Staked) (NAD 27)..............................................................................................50 31.0 Surface Plat (As Staked) (NAD 83)..............................................................................................51 SRU 41 B-33 Drilling Procedure Rev 0 Hilcorp Energy Company 1.0 Well Summary Well SRU 41B-33 Pad & Old Well Designation r SRU 41B-33 is a grass roots well on SRU Pad 41-33 Planned Completion Type 5-1/2" Production tubing Target Reservoir(s) Tyonek ` Planned Well TD, MD / TVD 6,500 MD / 6,500' TVD PBTD, MD / TVD 6,420' MD / 6,420' TVD Surface Location (Governmental) 890' FNL, 728' FEL, Sec 33, T8N, R9W, SM, AK Surface Location (NAD 27) X=346952.502, Y=2465553.014 Surface Location (NAD 83) X=1486975.490, Y=2465314.310 Top of Productive Horizon (Governmental) 890' FNL, 728' FEL, Sec 33, T8N, R9W, SM, AK TPH Location (NAD 27) X=346952.502, Y=2465553.014 TPH Location (NAD 83) X=1486975.490, Y=2465314.310 BHL (Governmental) 890' FNL, 728' FEL, Sec 33, T8N, R9W, SM, AK BHL (NAD 27) X=346952.502, Y=2465553.014 BHL (NAD 83) X=1486975.490, Y=2465314.310 AFE Number 1412448D AFE Drilling Days 5 MOB, 17 DRLG AFE Completion Days AFE Drilling Amount $4,084,077 AFE Completion Amount $600,000 Maximum Anticipated Pressure (Surface) 1510 psi (Drilling) Maximum Anticipated Pressure (Downhole/Reservoir) 2600 psi Work String 4-1/2" 16.6# S-135 CDS-40 (Saxon Owned String) RKB — GL 174.6'(156 + 18.6) Ground Elevation 156' BOP Equipment 11" 5M T3-Energy Annular BOP 11" 5M T3-Energy Single Ram Page 2 Version 0 July, 2014 I H Hileorp Energy Company 2.0 Management of Change Information SRU 41 B-33 Drilling Procedure Rev 0 14 Hileorp Alaska, LLC HilE.Wo Changes to ApprovedPermit to Drill Date: August 10, 2014 Subject: Changes to Approved Permit to Drill for SRU 41B-33 File #: SRU 41B-33 Drilling Program Any modifications to the Drilling & Completion Program will be documented and approved below. Changes to an approvedAPD vmli be AOGCC & BLM_ �' ca-'J - Approval: Prepared: Drilling Manager Drilling Engineer Page 3 Version 0 Date July, 2014 1 0 Hilcorp Energy Company 3.0 Tubular Program: SRU 41 B-33 Drilling Procedure Rev 0 ID (in) I Drift in Conn OD (in) Wt 1 (#/ft(psi)(psi) rade Conn Burst Collapse Tension k-lbs) Cond 16" 15" - - 109 X-56 Weld 12-1/4" 9-5/8" 8.835" 8.679" 10.625" 40 L-80 BTC 5750 3090 916 8-1/2" 5-1/2" 4.892 4.767 6.050 17 P-110 DWC/C HT 10640 7480 546 4.0 Drill Pipe Information: Hole Section QD ia,. , ID (in) TJ ID in Td OD in Wt #/ft Grade Conn Burst (psi). .,CQJlapse. ` i 16,769 Tension .(k-lbs) All 4-1/2" 3.826 2.6875" 5.25" 16.6 5-135 CDS40 17,693 468k All casing will be new, PSL 1 (100% mill inspected, 10% inspection upon delivery to TSA in Fairbanks). Page 4 Version 0 July, 2014 I n Hilcorp Energy Company 5.0 Internal Reporting Requirements SRU 41 B-33 Drilling Procedure Rev 0 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 pmazzolini(cr�,hilcorp.com , lkeller@hilcorp com , mmyers e,hilcorp.com and�jbarrett@hilcorp.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 mmyers@hileorp.com e,hilcorp.com and jbarrettghilcorp.com 5.6 Casing and Cmt report • Send casing and cement report for each string of casing to mmyers@hilcorp.com and jbarrett@hilcorp.com Page 5 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 Hi1COTp Energy Company 6.0 Planned Wellbore Schematic S,,vans+anRiver Unit PROPOSED Well SRU#418-v3 PTC?-- GGG-Goo APB: 50-000-OGOO",o 9 518z. Hale A Y� �i { ' If �✓ s FHM=a, WdPII -D=6 , TD=f;,W f IN'D=63.0T CMING DETAIL Size Type '9't Grade Cann. ID Top Btm Mad Weight comdLxtx 16" —Drivers 109 ?-55 %f0feld 15" Surf so, to 'Set DeptFn 9-5/8° Surf-C�g 4D LSD BTC 8.&34" Surf 31> ;&ppg DfiW'I;fi 5-1/2" Prod csg 17 P-110 HT 4.992" Surf 5,5w 1!D.0 40M r)riIIinc Infn Hole Section Casing PAW Warkstrirg 1.2-1/4" MIS. 9.9 ppg 9-1/2" 9-2/2- 5- f2" 95-105 pM 44.121 JEWELRY DETAIL h,' Depth I ID I OD I Item 1 I 2SM' 4-992- S 5" 1 BakerSweil Parker Page 6 Version 0 July, 2014 SRU 41B-33 Drilling Procedure Rev 0 7.0 Drilling / Completion Summary SRU 4113-33 is a vertical grassroots development well to be drilled off of the 41-33 pad. Subsurface modelling and seismic interpretation, along with production data, indicates that there is remaining gas reserves stranded in the Tyonek 54-5 thru Tyonek 56-9 sands. This well will be targeting PUD reserves in the Tyonek sands. These existing reserves are not recoverable in existing wellbores due to lack of take points or mechanical condition of other existing wellbores. Drilling operations are expected to commence approximately October 8�', 2014. The Saxon Rig # 169 will be used to drill the wellbore then run casing and cement. Surface casing will be run to 3,000 MD / 3,000' TVD and cemented to surface to ensure protection of any shallow freshwater 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 and BLM 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: r 1. MOB Saxon Rig # 169 to well site 2. N/U 21-1 /4" x 2M diverter. 3. Drill 12-1/4" hole to 3000' MD. Run and cmt 9-5/8" surface casing. 4. N/D diverter, N/U & test 11" x 5M T3-Energy BOP. 5. Drill 8-1/2" hole section to 6,500' MD. Perform Wiper trip. 6. POOH laying down drill pipe. 7. Run and cmt 5-1/2" production casing. 8. N/D BOP, N/U temp abandonment cap, RDMO. Reservoir Evaluation Plan: 1. Surface hole: GR + Res LWD. 2. Production Hole: GR + Res + Den/Neu LWD. 3. Mud loggers from surface casing point to TD. Page 7 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 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 of SRU 41B-33. Ensure to provide AOGCC 24 hrs notice prior to testing BOPS. BLM requires 48 hrs notice prior to testing. • The initial test of BOP equipment will be to 250/3500 psi & subsequent tests of the BOP equipment will be to 250/3500 psi for 10/10 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 both AOGCC approved drilling permit and BLM sundry are posted on the rig floor and in Co Man office. Regulation Variance Requests: • Onshore Oil and Gas Order No. 1, Section III. D. 3. C. f o Hilcorp requests approval to install a 3-1/8 5M HCR valve on kill line in lieu of a check valve. Operator suspects a freeze plug risk associated with installation of a check valve in the kill line. t, o Hilcorp requests approval to utilize flexible choke and kill lines in lieu of hard piping. Page 8 Version 0 July, 2014 I U HilcOrp Energy Company Summary of BOP Equipment and Test Requirements SRU 41 B-33 Drilling Procedure Rev 0 Hole Section Equipment Test Pressure (psi) 12-1/4" • 21-1/4" x 2M Hydril MSP diverter Function Test Only • I I" x 5M T3-Energy (Model 7082) Annular BOP • 11" x 5M T3-Energy Double Ram Initial Test: 250/3500 o Blind ram in btm cavity (Annular 2500 psi) • Mud cross 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 250/3500 3-1/8" x 2-1/16" 5M Choke manifold (Annular 2500 psi) • Standpipe, floor valves, etc • Primary closing unit: Control Technologies accumulator unit, 5 station, 120 gallon (12 x 11 gal bottles). • Primary closing hydraulic pressure is provided by an electrically driven triplex pump. Emergency pressure is provided by bottled nitrogen. Required AOGCC Notifications: • Well control event (BOPS utilized to shut in the well to control influx of formation fluids). • 24 hours notice prior to spud. • 24 hours notice prior to testing BOPS. • 24 hours notice prior to casing running & cement operations. • Any other notifications required in APD. Required BLM Notifications: • 48 hours before spud. Follow up with actual spud date and time. • 48 hours before casing running and cmt operations • 48 hours before BOPE tests Additional requirements may be stipulated on APD and Sundry. Page 9 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 Hilcorp Energy Company Regulatory Contact Information: AOGCC Jim Regg / AOGCC Inspector / (0): 907-793-1236 / Email: jim.regg@alaska.gov Guy Schwartz / Petroleum Engineer / (0): 907-793-1226 / (C): 907-301-4533 / Email: g_uy.schwartz@alaska.gov Victoria Ferguson / Petroleum Engineer / (0): 907-793-1247 / Email: Victoria.ferguson@alaska.gov Primary Contact for Opportunity to witness: AOGCC.Inspectors@alaska.gov Test/Inspection notification standardization format: biip://doa.alaska.gov/ogc/forins/TestWitnessNotifhtml Notification / Emergency Phone: 907-793-1236 (During normal Business Hours) Notification / Emergency Phone: 907-659-2714 (Outside normal Business Hours) BLM Justin Miller / BLM Petroleum Engineer / (0): 907-271-3406 (C): 907-717-4039 Use the below email address for BOP notifications to the BLM: BLM AK AKSO EnergySection Notificationsgblm.gov Page 10 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 HilmTEnergy Company 9.0 R/U and Preparatory Work 9.1 Set 16" conductor at 80' 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. i 9.6 R/U Saxon Rig # 169, spot service company shacks, spot & R/U company man & toolpusher offices. 9.7 Mud loggers not required on 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 diverter 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 11 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 Hilcorp Energy Company 10.0 N/U 21-1/4" 2M Diverter 10.1 N/U 21-1/4" Hydril MSP 2M diverter System. • N/U 16-3/4" 3M x 21-1/4" 2M DSA (Hilcorp) on 16-3/4" 3M wellhead. • N/U 21-1 /4" diverter "T". • Knife gate, 16" diverter line. • Ensure diverter R/U complies with AOGCC reg 20.AAC.25.035(C). 10.2 Function test diverter. Ensure that the knife gate and annular are operated on the same circuit so that knife gate opens prior to annular closure. �--� /U, F% � -1 H y 10.3 Ensure to set up a clearly marked "warning zone" is established on each side and ahead of the vent line tip. "Warning Zone" must include: • A prohibition on vehicle parking • A prohibition on ignition sources or running equipment • A prohibition on staged equipment or materials • Restriction of traffic to essential foot or vehicle traffic only. 10.4 Set 15.375" ID wearbushing in wellhead. Page 12 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 10.5 Rig and Diverter Line Orientation on SRU 41-33 pad: Page 13 Version 0 July, 2014 . H Hilcorp Energy Company 10.6 Diverter Schematic Annular Preventer Diverter Tee, 21 W x 2M %YI W ANSI 150 16-3/473Mx21-W2M Seaboard 16-A/4' 3M Casing head Assy SRU 41 B-33 Drilling Procedure Rev 0 Page 14 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 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 (GR and Res LWD are included in below BHA): COMPONENTDATA Rem; D : ;,: 00 rLength :. Cumulative! Len Ukh 1 HDBS- QHCIGRGklilllooth 12200 3.000 12.250 374.30 P6-WREG 1.20 1.20 2 8" SperryDrill Lobe 415 - 5-3 sig 8.000 5.000 121.DB B 6-SrS' REG 28.99 30.19 Stabilizer 11.5DO 3 Integral Blade Stabirazer 8.000 2.813 12.125 150-12 B 6-WS' REG 0.00 36.19 4 8" DM Collar ( Directional) 8.000 3.50D 147.40 B 6-513' REG 9.20 45.39 5 8' DOR Collar (Gamma) j 8.00D 1.92D 142-70 B 6-5fr8' REG 4.55 49.94 6 B" EWR-P4 Collar (Resistively) / 8.000 2.000 151.DO 13 6-5,S REG 12.19 62-13 7 8" HCIM Collar (Processor,) 8.006 1.920 149.90 B G-W REG 4.97 67.10 B 87LI - HOC (Pulser) S.15D 4.000 145-20 B 651B' REG 15.77 82.87 9 Orienting Sub UBHO 8.000 3.000 147.22 B 6-5W REG 3,50 85-37 10 Nan Mag Flex Drill Collar 8.000 1 3.000 147-22 B 6-5M" REG 30.00 116-37 11 Non Mag Flex Drill Callas 8.000 3.000 147.22 B 6-SW REG 30-00 146-37 12 X-O 6-518 Reg Pin X 4-112' IF Box 8.000 2-813 150.12 B 4-IX IF 3.50 149,87 13 B Joints 5" HWDP 5.00D 3.00D 49.30 240.OD 389.87 14 Weatherford 6-114' Hyd Jar 6.25D 2.250 91.01 B 4-112" IF 30.0D 419.87 15 19 Joints 5" HWOP 5.000 3.000 49.3D 57O.00 D89_137 = 989.87 Bit Number Nozzles tx12,3xIS Bit Size (in) 12150 TFA (in2) : 0.9560 Manufacturer HDBS Dull Grade In Model Dull Grade Out Serial Number Motor Number : 2 Bend (deg) 1.15 OD (in) 8.000 Nozzles (32nd) 0.0 Manufacturer Sperry Drilling Avg 0iff Press Model SperayDriii Cumul Cir Hm Serial Number Page 15 Version 0 July, 2014 Hilcorp Energy Company 11.3 Primary Bit: PRODUCT SPECIFICATIONS IADC Code 117W Total Tooth Count 67 Gage Row Tooth Count 34 Journal Angle 3; Offset (1116") 6 Jet Nozzle Types Standard 83244 Extended 302447 Center Jet (if Center Jetted) 501813 T.J. Connection 6-518" (API Reg,) Recommended Make -Up Torquer 28{100t32000 Ft;lbs. Bit Weight (Boxed) 250 Lbs. (113 Kg.) Bit Breaker (Mat.4.0dLegacyil) 515353506463 PRODUCT FEATURES • New patented Diamond- C'lawt - 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. • Hilt -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. • QuadPackilD Plus Series incorporates its successful "longevity" features and patented engineered hydraulics system for optimal cleaning efficiency. • Center jet feature to prevent bit balding problems SRU 41 B-33 Drilling Procedure Rev 0 Material #622394 "Caleulatims lased on rexmnnndatians fmm API and tool -joint manufactures. -0 2012 Halliburton. All rights reserved. Sales of Halliburton products and services w-ill 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 16 Version 0 July, 2014 FA SRU 41 B-33 Drilling Procedure Rev 0 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. 1 11.6 Drill 12-1/4" hole section to 3,000' MD/ 3,000' TVD. 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 between 2900' MD and 3100' 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: Depths Density Viscosity Plastic Viscosity Yield Point API FL pH 80-3 8.8 - 9.5 85-150 20 - 40 25 - 45 <10 1 8.5-9.0 r Page 17 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 Hilcorp Energy Company System Formulation: Aquagel + FW spud mud Product Concentration Fresh Water 0.905 bbl soda Ash 0.5 ppb AQUAGEL 12-15 ppb caustic soda 0.1 ppb (9 pH) BARAZAN D+ as needed BAROID 41 as required for weight PAC-L /DEXTRID LT if required for <12 FL ALDACIDE G 0.1 ppb X-TEND Il 0.02 ppb 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 logs are planned for the 12-1/4" hole section. Page 18 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 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. Estimated torque to reach base of triangle: 10,750 ft-lbs. • After making up several connections, use the torque required to M/U to base of triangle as the M/U torque and continue running string. • Install (1) centralizer every other joint to 300'. Do not run any centralizers above 300' in the event a top out job is needed. • Utilize a collar clamp until weight is sufficient to keep slips set properly. 9-5/8" BTC Estimated M/U Torque Casing OD Est Torque to Reach Triangle Base 9-5/8" 9,630 ft-lbs Page 19 Version 0 July, 2014 SRU 41B-33 Drilling Procedure Rev 0 HilcOrp Energy Company TenarisCasing and Tubing Performance Data Choose pipe size, wall thickness and steel grade to view API connection options and performance data Size �� 'Nall Grade Connection �0 Unit Pipe Body Data Nominal OD 9.625 in Wall Thickness 0.395 in API Drift Diameter 8.679 in Nominal Weight 40.00 lbsift Nominal ID 8.835 in Alternate Drift Diameter 8.75 in Plain End Weight 38.97 thsR Nominal Cross Section 11.454 sq in PERFORKAHCE Steel Grade L80 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Body Yield Strength 916,000 tbs Internal Yield Pressure 5,750 psi Collapse Pressure 3,080 psi 41 ► Connection Data i Regular OD 10.625 in Threads Per Inch 5 (Make -Up Thread Turns 1 AM Steel Grade L80 Minimum Yield psi Minimum Ultimate 951000 psi Joint Strength 947,000 ibs Internal Pressure 5,750 psi Resistance TenarisHydril Premium Connections Print Contact Us V'er 8.6 12.6 Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 12.7 Slow in and out of slips. rrig I angj I -I TIT- nnapCasing- = 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 20 Version 0 July, 2014 SRU 41B-33 Drilling Procedure Rev 0 Hilcorp Energy Company 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 21 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 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 30 bbls of 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) 12.0 ppg LEAD: 16" Conductor x 9-5/8" casing annulus: 80' x .129 bpf = 10.3 57.8 12.0 ppg LEAD: 12-1/4" OH x 9-5/8" Casing annulus: (2500' - 80') x .0558 bpf x 1.5 = 202.5 1137 Total LEAD: 212.8 bbl 1194.8 ft3 TAIL: 12-1/4" OH x 9-5/8" Casing annulus: (3000'-2500') x .0558 bpf x 1.5 = 41.9 235.3 ---48.8 - -- -- TAIL:- TAIL: 50.6 bbl 284.1 ft3 Page 22 Version 0 July, 2014 I U Hilcorp Energy Company Cement Slurry Design: SRU 41 B-33 Drilling Procedure Rev 0 Lead Slurry (2500' MD to surface) Tail Slurry (3000'to 2500' MD) System Extended Conventional Density 12 lb/gal 15.4 lb/gal Yield 2.46 M/sk ✓ 1.22 ft3/sk V Mixed Water 14.349 gal/sk 5.507 gal/sk Mixed Fluid 14.469 gal/sk 5.507 gal/sk Code Description Concentration Code Description Concentration G Cement 94#/sk A Cement 94#/sk D110 Retarder 0.15 gal/sk BWOC D046 Anti Foam 0.2 % BWOC Additives D046 Anti Foam 0.2 % BWOC D065 Dispersant 0.4 % BWOC D079 Extender 2.0 % BWOC S002 CaC12 0.35 % BWOC D020 Extender 3.0 % BWOC D177 CaC12 0.1 % 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 9.0 ppg 6% KCL PHPA. 13.10 Ensure cement unit is used to displace cmt so that volume tracking is more accurate. 13.11 Displacement calculation: 3000'- 80' = 2920' x .0758 bpf = 221.3 bbls 13.12 Monitor returns closely while dispYacing 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. Page 23 Version 0 July, 2014 I U Hilcorp Energy Company SRU 41 B-33 Drilling Procedure Rev 0 13.13 Do not overdisplace by more than shoe track volume. Total volume in shoe track is 8.7 bbls. Be prepared for cement returns to surface. If cmt returns are not observed to surface, be prepared to run a temp log between 12 — 18 hours after CIP. Be prepared with small OD top out tubing in the event atop 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". 13.14 Bump the plug with 500 psi over displacement pressure. Bleed off pressure and confirm floats are holding. If floats do not hold, pressure up string to final circulating pressure and hold until cement is set. Monitor pressure build up and do not let it exceed 500 psi above final circulating pressure if pressure must be held. 13.15 R/D cement equipment. Flush out wellhead with FW. 13.16 Back out and L/D landing joint. Flush out wellhead with FW. 13.17 M/U pack -off running tool and pack -off to bottom of Landing joint. Set casing hanger packoff. Run in lock downs and inject plastic packing element. 13.18 Lay down landing joint and pack -off running tool. Ensure to report the following on wellez: • Pre flush type, volume (bbls) & weight (ppg) • Cement slurry type, lead or tail, volume & weight • Pump rate while mixing, bpm, note any shutdown during mixing operations with a duration 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-commentswhiehwou-ld-deescrib"rprobkm—s-during--the-eementj-ob Send final "As -Run" casing tally & casing and cement report to mmyersna,hilcorp.com. This will be included with the EOW documentation that toes to the AOGCC. Page 24 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 Hilcorp Encru Company 14.0 BOP N/U and Test 14.1 N/D the diverter. 14.2 N/U Seaboard multi -bowl wellhead assy. Install 9-5/8" packoff P-seals. Test to 3000 psi. 14.3 N/U 11" x 5M T3-Energy BOP as follows: • BOP configuration from Top down: I I" x 5M T3-Energy annular BOP/11" x 5M T3-Energy Model 6011i double ram /11" x 5M mud cross/11" x 5M T3-Energy Model 6011i single ram • Double ram should be dressed with 2-7/8 x 5" VBRs in top cavity, blind ram in btm cavity. • Single ram should be dressed with 2-7/8 x 5" VBRs • N/U bell nipple, install flowline. • Install (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 250/3500 psi for 10/10 min. Test annular to 250/2500 psi for 10/10 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 9.0 ppg 6% KCL PHPA mud system. r 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. Page 25 Version 0 July, 2014 SRU 41B-33 Drilling Procedure Rev 0 Hilcorp Energy Company 15.0 Drill 8-1/2" Hole Section 15.1 P/U 8-1/2" directional BHA. 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 26 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 Hilcorp Energy Company 15.7 8-1/2" BHA: COMPONENT 1 , : HDBS - FX65D PDC .. 8.400 2.500 8.500 172-13 P 4-112' REG 1-00 1.00 2 7" SperryDrill Lobe 718 - 6.0 stg 7.00D 4.952 93.13 B 4-112' IF 27.38 28.38 Stabilizer 7.750 3 Non Mtag Float Sub 6.759 2750 101.71 B 4-112' IF 3-00 31.38 4 Integral Blade Stabilizer (NM) 6.750 Z813 8.375 100-77 B 4-112' IF 5.00 36.38 5 614" DIA (Directional) 6.750 3.125 103.40 B 4-112' IF 9.20 45.58 6 6 314" BAT (Sonic) f` 6.75D 1.905 97.70 B 4-112' IF 20.30 65.89 7 6 314' DGR (Gamma) / 6.750 1.920 97.80 B 4-112` IF 4.55 70.44 8 6 314' EWR-P4 (Resistively) / 6.75D 2000 104.30 B 4-1127 IF 12.10 82.54 9 614' HCIMt (Processor) 5.750 1.920 101.7D B 4-1.12 IF 4.97 87-51 10 6 14"ALD (Density) / 6.750 1.920 8.250 1 194.39 B 4-112" IF 14.54 102-05 Stabilizer 8.250 11 6 3,14' CTN (Neutron) 6.750 1.905 102.30 B 4-112' IF 11.84 113.89 12 6 3J4" TM1- HOC (Puller) 6.90 3.25D 103-15D B 4-112' IF 15.59 129.48 13 Non Miag Flex Drill Collar 6.750 2.813 100.77 B 4-112" IF 30.00 159.48 14 Non Mag Flex Drill Collar 6350 2.813 100.77 B 4-112' IF 30AD 189.48 15 8 .points 5" HWDP 5.000 3.000 49.30 240.00 429.48 16 Weatherford 6-114' Jars 6.250 2.250 91.01 B 4-112' IF 30.00 459.48 17 19 Jaints 5' HW DP 5.000 3.000 49.3D 570.00 1029.48 Bit Number Bit Size Manufacturer Model Serial Number Nozzles : 5x13 TFA (in2) :0.6481 Dull Grade In Dull Grade Out 1029.48 I Motor Number 1 Bend (deg) 0.00 OD (in) : 7.0130 Nozzles (32nd) 0.0 Manufacturer Sperry Drilling Avg Diff Press Model SperyDrill CumulCirHrs Serial Number v Page 27 Version 0 July, 2014 15.8 Primary Bit: PRODUCT SPECIFICATIONS Cutter Type SCIOCICntter IADC Code M314 Brady Typc NWkTRIX Total Cutter Count 41 CuticrDistribution 13mm 16mm Fwc 1 29 Gauge 5 0 Up Drill 6 0 NumbcrofLwgcNozz1cs 0 Number of Medium Nozzles 0 Number of Small Nozzles 6 Number of Micro Nozzles 0 Number of Poets (Size) 0 Number of Replacc3ble Ports (Size) 0 Junk ;Slot Area (sq in) 14.81 Normalized Face Volume 42.131A API Connection 4-V2 Rl G. FIN Recommended Make -Lip Torque' 12,461 - 17,766 Ftelbs. Nominal Dimensions" Makc-Up Face to loose 10.73 in - 273 mm Gauge Length 2.5 in - 64 mtn Sleeve Length 0 in -0 mm Shank Diameter 6 in - 152 mm Breakout Plats ('Mat.#a4.eguoY#) 18145+44040 Approximate Shipping Weight 160Lbs. - 73t g. SPECIAL FEATURES UIT' Relieved Gage, Combination Backmum/up-Drill cutters, TSP Gage, Modified Diamond Reinforcement-"W Feature SRU 41B-33 Drilling Procedure Rev 0 HALLIGURTON Material #803275 "Bit specific recommended make-up torque is a functionof the bit 1.6_ and actual bit sub 6.D_ utilized as specified in API RP7G Section A.8.2. ""Desigo dimensions arc nominal and may vary slightly on manufactured ra�duct- llalliLurtoo Drill $its and Semites models are caaiinumusty reviewed and mfimcd- Prodmct specifications may change without notice_ ——C3lot- savicc wi I_bv,-in wc-vurd malcly—widi the terms and conditions _ Page 28 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 Hilcorp Energy 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. 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 6% KCL PUPA fresh water based drilling fluid. Properties: Mud Plastic MD Viscosity yield Point pH HPHT Weight Viscosity 3. M'- 6,;00' 9.5 — 11.0 40-53 15-25 15-25 8.5-9.5 < 11.0 '3c a✓� E-�17-- System Formulation: 6% KCL EZ Mud DP v7,17 Product Concentration Water 0.905 bbl KCl 22 ppb (29 K chlorides) Caustic 0.2 ppb (9 pH) BARAZAN D+ 1.25 ppb (as required 18 YP) EZ MUD DP 0.75 ppb (initially 0.25 ppb) DEXTRID LT 1-2 ppb PAC-L 1 ppb BARACARB 5/25/50 15 - 20 ppb (5 ppb of each) BAROID 41 as required for a 9.5 —11.0 ppg ALDACIDE G 0.1 ppb BARACOR 700 1 ppb BARASCAV D 0.5 ppb (maintain per dilution rate) 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. +' 15.12 Drill out shoe track and 20' of new formation. 15.13 CBU and condition mud for FIT. Page 29 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 Hilcorp Enau Company 15.14 Conduct FIT to 12 pp W. Note: Offset field test data predicts frac gradient at the 9-518 " shoe to be between 13 - I5 ppg EMW. An 12 ppg FIT results in a 2.5 ppg kick margin while drilling with the planned NIW of 9.5 ppg. 15.15 Drill 8-1/2" hole section to 6,500' MD. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Pump at 400 - 500 gpm. Ensure shaker screens are set up to handle this flowrate. • Utilize inlet experience to drill through coal seams efficiently. Coal seam log will be provided by Hilcorp Geo team, try to avoid sliding through coal seams. Work through coal seams once drilled. • Keep swab and surge pressures low when tripping. • Make wiper trips every 500' or every couple days unless hole conditions dictate otherwise. • 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. • Take (3) sets of formation samples every 20'. Mud loggers should compile Pixler plots and QFT 2 analysis for Lower Tyonek to total depth. 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, laying down drill pipe and BHA. 15.18 Install 5-1/2" pipe rams in BOP stack and RU and test. Page 30 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 Hilcorp Energy Company 16.0 Run 5-1/2" Production Casing 16.1. R/U Weatherford 5-1/2" casing running equipment. • Ensure 5-1/2" DWC/C HT x CDS 40 crossover on rig floor and M/U to FOSV. • R/U fill up line to fill casing while running. • Ensure all casing has been drifted prior to running. • Be sure to count the total # of joints 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). • (1) Joint with float collar bucked on pin end & threadlocked (coupling also thread locked). • Solid body centralizers will be pre -installed on shoe joint an FC joint. • Leave centralizers free floating so that they can slide up and down the joint. • Ensure proper operation of float shoe and float collar. • Utilize a collar clamp until weight is sufficient to keep slips set properly 16.4. Continue running 5-1 /2" production casing • Fill casing while running using fill up line on rig floor. • Use "API Modified" thread compound. Dope pin end only w/ paint brush. • Install solid body centralizers on every joint across zones of interest, TBD after LWD. • Install solid body centralizers on every other joint to 9-5/8" shoe. Leave the centralizers free floating. • Pick up swell packer and place in string at approximately 2500' 16.5. Continue running 5-1/2" production casing ----- =1/2" DVVC/C-HT 1tr [Utorqu -s-- - m - _ nini= _ _- I tx mum — _ - ue - - 5.5" 12,000 ft-lbs 1 13,800 ft-lbs 18,700 ft-lbs Page 31 Version 0 July, 2014 Technical Specifications Connection Type: Size(OI.D.): DWCIC-HT Casing 5-112 in staindaard 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) 4.892 Nominal Pipe Body I.D.On) 0.304 Nominal Wall Thickness (in) 17:00 Nominal Weight (lbsift) 16.89 Plain End Weight (ibslft) 4.962 Nominal Pipe Body Area (sq in) Pipe Body Performance Properties 546,000 Minimum Pipe Body Yield Strength (I 7,460 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 Propertl( 546,000 Joint Strength (Ibs) 22,940 Reference String Length (ft) 1.4 Des 568,000 API Joint Strength (Ibs) 546,000 Compression Rating (Ibs) 7,480 API Collapse Pressure Rating (psi) 10,640 API Internal Pressure Resistance (ps 91.7 Maximum Unlaxial Bend Rating jdegi - - - - _Appoxlmated Field _End Torque Va - - - - - i�0� _ - Minimum _ Ina __ brque -[b - ---- - 13,800 Maximum Final Torque (ft Ibs) 18,700 Connection Yield Torque (ft-Ibs) SRU 41 B-33 Drilling Procedure Rev 0 Weight (Wall): Grade: 17.00 Iblit (0.304 in) P-110 A&W I USA Vasa use. 4424 W. Sant Hamton Pk%y. suite 150 HmtstDn. TX 77041 Phane: 713-479-320D Fax: 713-47 23+4 E-mail: A1, NIU aReefilvant-usa.com Fordeteiled information on performance properties, refer to OWC Connection Data Notes on following page(s). Page 32 Version 0 July, 2014 • (r SRU 41 B-33 Drilling Procedure Rev 0 Hilcorp Energy Company 16.6. Run in hole w/ 5-1/2" casing to the 9-5/8" casing shoe. 16.7. Fill the casing with fill up line and break circulation every 1,500 feet to the window or as the hole dictates. 16.8. Obtain slack off weight, PU weight, rotating weight and torque of the casing. 16.9. Circulate 2X bottoms up at shoe, ease casing thru shoe. 16.10. Continue to RIH w/ casing no faster than 1 jt./minute. Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 16.11. Set casing slowly in and out of slips. 16.12. PU 5-1/2" X 8-1/2" swell packer to be placed at approximately 2500'. Swell packer should have 10' handling pups installed on both ends with bow spring centralizers on pups. 16.13. Swedge up and wash last 2 joints to bottom. P/U 5' off bottom. Note slack -off and pick-up weights. 16.14. Stage pump rates up slowly to circulating rate. Circ and condition mud with casing on bottom. Circulate 2X bottoms up or until pressures stabilize and mud properties are correct and the shakers are clean. Reduce the low end rheology of the drilling fluid by adding water and thinners. 16.15. Reciprocate string if hole conditions allow. Circ until hole and mud is in good condition for cementing. Page 33 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 Hilc Energy Company 17.0 Cement 5-1/2" Production Casing 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 cmt operation. • Document efficiency of all possible displacement pumps prior to cement job. 17.2. Attempt to reciprocate the casing during cmt operations until hole gets sticky 17.3. Pump 5 bbls of 12.5 ppg Mud Push spacer. 17.4. Test surface cmt lines to 4500 psi. 17.5. Pump remaining 30 bbls 10.5 ppg Mud Push spacer. 17.6. Mix and pump lead and tail cement per below recipe. Ensure cement is pumped at designed weight. Job is designed to pump 35% OH excess. �--01 Section: Calculation: (BB l Vol (ft3) 9-5/8" x 5-1/2" Csg Overlap: 500' x 0.0464 = 23.2 130.4 8-1/2" OH x 5-1/2" Casing: (6500 — 2500) x 0.0408 x 1.35 = 220.3 1237 Shoe Track: 80' x 0.02325 = 1.9 10.4 Total Volume: 245.4 1377.8 a� Page 34 Version 0 July, 2014 I oiZ, 5 x SRU 41B-33 Drilling Procedure Rev 0 Hilcorp Energy Company EASYBLOK (6500' to 2500') System Conventional Density 15.3 lb/gal Yield 1.36 ft3/sk ✓ Mixed Water 5.93 gal/sk Mixed Fluid 5.93 gal/sk Additives Code Description Concentration Class G Cement 94#/sk D046 Foam Preventer 0.2% BWOC D202 Dispersant 1.5% BWOC D400 EASYBLOK 0.8% BWOC D154 Extender 8.0% BWOC D174 Expanding Additive 1.5% BWOC D198 Retarder 0.3% BWOC 17.7. Drop wiper plug and displace with produced water. 17.8. If hole conditions allow — continue reciprocating casing throughout displacement. This will ensure a high quality cement job with 100% coverage around the pipe. 17.9. If elevated displacement pressures are encountered, position casing at setting depth and cease reciprocation. Monitor r�turr�s pressure elese�3�whirEirculatir3g Rio* r lli gF�r 17.10. Bump the plug and pressure up to 500 psi over final lift pressure. Hold pressure for 3 minutes. 17.11. Do not overdisplace by more than 1/2 shoe track. Shoe track volume is 1.9 bbls. Page 35 Version 0 July, 2014 SRU 41B-33 Drilling Procedure Rev 0 Hi1COip Energy Company 17.12. Bleed pressure to zero to check float equipment. Watch for flow. Note amount of fluid returned after bumping plug and releasing pressure. 17.13. RD cementers and flush equipment. S 17.14. WOC minimum of 12 hours, test casing to.�WU psi and chart for 30 minutes. 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 tall y & casing and cement report to mmyers@hilcorp.com. This will be included with the EOW documentation that goes to the AOGCC. Page 36 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 Hilcorp Energy Company 18.0 RDMO 18.1. Install BPV in wellhead 18.2. N/D BOPE 18.3. N/U temp abandonment cap 18.4. RDMO Saxon Rig #169 l Page 37 Version 0 July, 2014 SRU 41B-33 Drilling Procedure Rev 0 Hilcorp EnerU Company 19.0 BOP Schematic ide Page 38 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 Hilcorp Energy Company 20.0 Wellhead Schematic Tree cap, Cris, 51/8 SM FE X 9'; Otis CWlck Union Valve, Swab, WK164-M, 51 jX SM FE, HWO, DD trim ft 1 9hrc, lh5r}� Wla. l�, Valve, WTTg. VAM-NI, 31j85frI FE. H14Y1, 3 V95ra FE, HWO, DDtrim DDtrim Valt-, Upper Mash, NICM-M, 5118 5M FE, F #G� EJO tri m O'assover sx�d, 51f85MFExSV81 IFE Valve, Mister, CIVI-FC, 51J810M FE, HWO, EEtrim Tubing head, Seaboard-S8, IL r 16 114 3M x 115M, wj 2- 21116 SM SSO, CH o 5 518 P seal bottom 1G,. q Sj"VI Page 39 Version 0 July, 2014 Hilcorp Energy Company 21.0 Days Vs Depth Days Vs Depth — SR:U 41B-33 IODD ZODa 30DO zs 3 w CV 4WO 5ODD 0 — 000 0 SRU 41 B-33 Drilling Procedure Rev 0 5 10 15 20 25 Days Page 40 Version 0 July, 2014 Hilcorp Energy Company 22.0 Geo-Prog Drill a grassrootvertical hole to capture F Based on subsurface evaluation JD reserves in the Tyonek 54-5 and 56-9 Sands SRU 41B-33 Drilling Procedure Rev 0 Formation FORMATION FLUID MD_ TVD I Est Pressure I X j Y Surface Location _ 346957.90, 2465817.89' STERLING —A W STERLING A Wet I346957� 10 3033 3033 .90 2465817 89 BELUGA BELUGA _ Wet 3344' 3344 1500# 346957.90 2465817.89 10 SR BELUGA Wet 4489! 4489 2000# 346957.90E 2465817.89 10 — -- --- — SR TYONEK TYONEK Mkr ! 510Q 51000—`346957Y901 2465817.89�J 10 SR 54-5ST TYONEK Gas ; 5439 5439 2000-2600# 346957.90: 2465817.89 10 SR_D1CT TYONEK Coal 5656 5656 2000-2600# 346957.90 2465817.89 10 R_5�': TYONEK Gas 5702; 57021 2000-2600# 346957.90 2465817.89 10 Wet 5866' S866 346957.90 2465817.89, _ 10 Primary s Objective ObjectiveSecondary TARGETRADIUS 100 FT Page 41 Version 0 July, 2014 I U Hilcorp Energy Company 23.0 Anticipated Drilling Hazards 12-1/4" Hole Section: SRU 41 B-33 Drilling Procedure Rev 0 Lost Circulation: Ensure 500 lbs of medium/coarse fibrous material & 500 lbs different sizes of Calcium Carbonate are available on location to mix LCM pills at moderate product concentrations. 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. H2S: H2S is not present in this hole section. 011 No abnormal pressures or temperatures are present in this hole section. Page 42 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 8-1/2" Hole Section: Lost Circulation: Ensure 1000 lbs of each of the different sizes of Calcium Carbonate are available on location to mix LCM pills at moderate product concentrations. Hole Cleaning: Maintain rheology w/ viscosifier as necessary. 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 MW as necessary using additions of Calcium Carbonate as weighting material. A torque reduction lube may be used in this hole section in concentrations up to 3% if needed. 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. • Increase fluid density as required to control running coals. • Emphasize good hole cleaning through hydraulics, ROP and system rheology. H2S: t H2S is not present in this hole section. i No abnormal temperatures are present in this hole section. Page 43 Version 0 July, 2014 SRU 41B-33 Drilling Procedure Rev 0 Hilcorp Energy Company 24.0 Saxon Rig 169 Layout Owm ti Jilin l tIN__ IP 7 LIii L%� �j Page 44 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 25.0 FIT Procedure Formation Integrity Test (FIT) and Leak -Off Test (LOT) Procedures Procedure for FIT: 1. Drill 20' of new formation below the casing shoe (this does not include rat hole below the shoe). 2. Circulate the hole to establish a uniform mud density throughout the system. P/U into the shoe. 3. Close the blowout preventer (ram or annular). 4. Pump down the drill stem at 1 /4 to 1 /2 bpm. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) vs. drill pipe pressure until appropriate surface pressure is achieved for FIT at shoe. 6. Shut down at required surface pressure. Hold for a minimum 10 minutes or until the pressure stabilizes. Record time vs. pressure in 1-minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. The pre -determined surface pressure for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measures are required. Where required, the LOT is performed in the same fashion as the formation integrity test. Instead of stopping at a pre -determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with an FIT. Page 45 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 Hilcorp Ena¢y Company 26.0 Choke Manifold Schematic i A -�5 5'>-Y FA b k' f 1 !pl1. I� �I II'� it/I rt I[ I� [M Page 46 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 Hilcorp Energy Company 27.0 Casing Design Information Calculation & Casing Design Factors Swanson Rlver Unit DATE: 8/1912014 WELL: SRU 4113-33 FIELD: Swanson River DESIGN BY: Monty M Myers Criteria: Hole Size 12-1/4" Mud Density: 8.8 ppg Hole Size 8-1/2" Mud Density: 9.5 ppg Hole Size Mud Density: Drilling Mode MASP: 1510 psi (see attached MASP determination & calculatio MASP: Production Mode MASP: 2230 psi (see attached MASP determination & calculation) Collapse Calculation: Section Calculation 1 Normal gradient external stress (0.435 psi/ft) and the casing evacuated for the internal stress Casing Section Calculation/Specification 1 2 3 4 Casing OD 9-5/81, 5-1/2" Top (MD) 0 0 Top (TVD) 0 0 Bottom (MD) 3,000 6,500 Bottom (TVD) 3,000 6,500 Length 3,000 6,500 Weight (ppf) 40 17 Grade L-80 P-110 Connection BTC DWC/C HT Weight w/o Bouyancy Factor (Ibs) 120,000 110,500 Tension at Top of Section (Ibs) 120,000 110,500 Min strength Tension (1000 Ibs) 916 546 Worst Case Safety Factor (Tension) 7.63 4.94 Collapse Pressure at bottom (Psi) 1,305 2,828 Collapse Resistance w/o tension (Psi) 3,090 7,480 Worst Case Safety Factor (Collapse) 2.37 2.65 MASP (psi) 1,300 2,747 ? 0 '. Minimum Yield (psi) 5,750 10.640 Page 47 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 Hile01� Energy Company 28.0 8-1/2" Hole Section MASP Maximum Anticipated Surface Pressure Calculation n 8-1/2" Hole Section SRU 41B-33 Swanson River Unit MD TVD Planned Top: 0 0 Planned TD: 6500 6500 Anticinated Formations and pressures: Formation TVD Est Pressure Oil/Gas/Wet PPG Grad Sterling_A 3033 1300 WATER/GAS 8.2 0.429 Beluga 3344 1500 WATER/GAS 8.6 0.449 SR_LBGT 4489 1940 WATER/GAS 8.3 0.432 SR_Tyonek 5100 2200 WATER/GAS 8.3 0.431 SR_54-5ST 5439 2600 GAS 9.2 0.478 SR_D1CT 5656 2600 COAL 8.8 0.460 SR_56-9ST 5702 2600 GAS 8.8 0.456 SR 61-OCCT 5866 2600 WATER 8.5 0.443 Offset Well Mud Densities Well MW ranEe Ton ITVM Rnttnm (TVnl nnta SCU 21-4 12 ppg 0 10,965 1961 SCU 44-33 11.3 -12.5 ppg 9,216 10,747 2013 SCU 41A-4 11.2 ppg 9,300 10,807 2013 Assumptions: 1. Fracture gradient at shoe is estimated at 0.65 psi / ft based on field test data. 2. Maximum planned mud density forthe 8-1/2" hole section is 9.5 ppg. 3. Calculations assume "Unknown" reservoir contains 100'1 gas (worst case). 4. Calculations assume worst case event is 100% evacuation of well bore togas. Fracture Pressure at 9-5/8" shoe considering a full column of gas from shoe to surface: TVD Frac Grad 3000 ft X 0.650 psi/ft 1950 psi 1950(psi) - [0.1(psi/ft)*3000(ft)]= 1650psi MASP from pore pressure (unknown gas sand at TD, at 8.4 ppg, encountered while drilling) 6500 ft X 0.443 psi/ft 2880 psi CZ 2880(psi) - [(2/3)*O.1(psi/ft)*6500(ft)]+[(1/3)*0.443(psi/ft)*6500(ft)]= 1510 psi - — — - MASP from pore pressure during -production mode (Complete -evacuation togas) — — — ,�- "'s� P� 6500 ft X 0.443 psi/ft 2880 psi 2880(psi) - [0.1(psi/ft)*6500 (ft)]= 2230 psi — f Summary: c- -- t-< p �.7, 1. MASP while drilling 8-1/2" production hole is governed by pore pressure and evacuation �S 1 r� of 2/3 wellbore to gas at 0.1 psi/ft. t Page 48 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 29.0 Spider Plot (NAD 27) (Governmental Sections) KGSF7 B14Lf - � 8¢GSF3HHL" -/ KciSF2 HHL°' 1 I t y P S l� Ru}23BHIL i¢�fl8F8f��. &RU_73.TT� / J Jf p/ 5RU_314,T7P82 A BHIL y f SRU-3143TP61: r! EHL f 27 A�}28406 f8RU_1 rr f ark � t f s©oBNO09W f` AU28399 f /J %SRLi SRu�1a 3a 41B-33: VtA. tA •^-`--'- _ ? _,sue OHL SGU-43A-33 HH�S IJ *, Legend A028990 A r SRU 418-33 N#1BIi LonaGcm r :" • Other Surface Well Loratians - — _� _ _ — -- — - '- -Ottws Bobom Hole-�-- Paths - ff` r SRF Unit Boundary Swanson River Unit SRU 418-33 Mil wp Ah"ka, Ida: 0 1,000 ZM3D Feet Alaska 3iaM Mia , ?nme 4, NAII27 ,IMP lama &I.M127714 Page 49 Version 0 July, 2014 SRU 41 B-33 Drilling Procedure Rev 0 n 30.0 Surface Plat (As Staked) (NAD 27) SECTION LINE AS -STAKED WELL SRU 41B-33 N:2465553.014 E:346952.502 LATITUDE: 60°4445.1702"N LONGITUDE: 150'51' 19.4326'W ASP ZONE 4 NAD27 FEL = 728' FNL = 890' . ELEV = 157' (NAVD88) SECTION 33, T8N, ROW, SM, AK pw * ow : $g Ifs. � OW i NOT TO SCALE z U. O J PA00-33 4SRI)14B-27 r� SRU 13-27 4. ti U Y ,............ ...r seE oo :. scoTr i��ant�: f • O� � 4$ZB—S �•r G ties q� J 1 } EA.51S OF COMMATES_ NGS OPUS SOLU nON FROM CONS 79AN> %' aqN' AND'TSEA• A(ASKA STATE PLANE ZONE 4 NAW3 EPOCH 2003, 2)MSI3OF ELEVATION: NGS OM 079 RESET 1931 NAVDE8. 3j SSpi1t.X4 LNG OFFSETS COMPUIeD FHom UVJ EURNEas FOUND AT Y S32 5333. NW & 3331 N & S32533 AND US£O TO C MPUM NE CORNER $3a COOR!`.tINAMS SHtnVN SRU 41B-33 WELL ENGINEERING . TESTING SURVEYING -MAPPING P.O. BOX 458 U[t3CE: {907) 263-4216 FAX: (007) 283-32G5 CONJAW IW W.M.MCL4NECG.COPA Page 50 N 2466433.44 E 347604.76 33 344 LJ .J Q t!� FEL U1 z J1 z 0 LOCATION: SECTION 33, TOWNSHIP 8 NORTH, RANGE 9 WEST, SEWARD MERIDIAN ALASKA ri It I f lrorp Alaska. I'LC. .JOB NO. 143104 1431D4 I Date:08r04114 I FIGURE I Version 0 July, 2014 31.0 Surface Plat (As Staked) (NAD 83) SECTION LINE AS -STAKED WELL SRt141 B-33 N:2465314.310 E:14 86975.4W LATITUDE: 60='4443.1438"IJ LONGITUDE: 150`51'27.4213" W ASP ZONE 4 NAD83 FEL = 728' FNL = 890' ELE! = 157' (NAV088) SECTION 33, UN, R9W, SM, AK OF At,q�� * 49 m 00 W SWTT WL411E 01 4928—S .. 1 hlr p5 2017 . s i' I ?Q'rSS KR4N- }�r��y�� r .x Z U. 0 Cb 00 NOT TO SCALE SRV10,27 }� !F , RU 13-27 � 'Z. r SEC NOTE 1 p OASIS OF OTC+INATES. NGS OPUS SOLUTION FROM CORS —zANv, *rRr)N' AND n2iS k AL.ASKAFIATF F. AWi 7( NE 4NA1x93 EPOCH 2rA3 21ELi.:ISOF ELEVATION: NGS DPA079 RESET 7Q91 NAVD68. 11 SkC;IECA LINEE cx-FSEfS C M1NU1EbFROM HLhi[UkNEkS fOUNDA3'%522533.N'fiXr 533&Nk S32F.33&NDUSED O CMIPUtF NE FDEiNE FR S.131: UUFMINATtS SHLAVN SRU 41 B-33 Drilling Procedure Rev 0 2$ 2 N 2466194.73 33 34 E 1487713.79 728' FEL 33 Ak� NORTH SCALE c� 1cn �aa SITU +41 B-33 WELL AS STAKED SURFACE LOCATION NAD83 LOCATION: SECTION 33. TOWNSHIP 8 NORTH, ENGINEERING . TESTING SURVEVI1dCi-A,1AFPI3 RANGE 91NE5T, SEWARD MERIDIAN AtASKA P.O. Box 4fi,3 SCLOOTINA. 26 -421 B JOB NO. 143104 *, V'-O�10E� {307} 2fs3-+.21 [i FAK 11107j 283-32iZ DWG. C 11tW 'P1l`MAIGLANECG.CCA9 143104 Date:08104114 llitrorp Ala ka. L.IX FIGURE: 1 Page 51 Version 0 July, 2014 RECEIVE7- Hilcorp Alaska, LLC FEB 13 2015 14 Weekly Operations Summary /BOG Well Name API Number Well Permit Number StartDate End Date SRU 34-28 50-133-10158-00 163-007 1/8/15 Daily Operations: 01/28/2015 - Wednesday No activity to report. 01/29/2015 - Thursday No activity to report. 01/30/2015 - Friday No activity to report. 01/31/2015 - Saturday No activity to report. 02/01/2015 - Sunday No activity to report. 02/02/2015 - Monday No activity to report. 02/03/2015 - Tuesday MIRU SL, Test Lub to 1,500psi, test A RIH w/ 1.75 sample bailer and tagged cement at 4,400' slm. POOH. Verified cement in sample bailer. RDMO SL. RU the triplex and a chart recorder. Pressured up on tbg to 1,500psi and charted for 30mins, test ok. Bleed off pressure and secured well. /�{+x�r/try 6'�''�i� .-. /� 1�' •3. r -` Z� ;'��%c-; �+ � `�"-`'�,�u-''`. � 4'c_ `�'-� 'rat'--`�i Schwartz, Guy L (DOA) From: Davies, Stephen F (DOA) Sent: Monday, January 26, 2015 9:55 AM To: Schwartz, Guy L (DOA) Subject: FW: SRU 41B-33 Permit to Drill (PTD #214-129) Guy, Below is the last communication that I have from Hilcorp regarding SRU 4113-33. Unless nearby well SRU 34-28 is plugged back, Hilcorp needs a spacing exception to drill and complete SRU 41B- 33. According to AOGCC's docket list, Hilcorp has not submitted a spacing exception application for SRU 4113-33. As of November 14th, SRU 34-28 had not been plugged back because BLM asked Hilcorp to accomplish additional tasks. Sundry Application #314-677 (approved on 12/23/2014 and returned to Hilcorp on 12/29/2014) granted approval to plug perforations in SRU 34-28. AOGCC's records* indicate that Hilcorp has not submitted a corresponding Sundry Report demonstrating those planned plugging operations were successfully completed. Please let me know if you have any questions or if I can help further. Regards, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 AOGCC: 907-279-1433 Fax: 907-276-7542 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 * AOGCC's RBDMS database and AOGCC's Sundry Report logs for 2014 and 2015—checked 1/26/2015 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: Chad Helgeson [mailto:cheigeson@hilcorp.com] Sent: Friday, November 14, 2014 4:39 PM To: Davies, Stephen F (DOA) Subject: RE: SRU 41B-33 Permit to Drill (PTD #214-129) Steve, We have not finished the plugback work on the 34-28. The BLM is asking us to do some additional activities, so we haven't completed the plugback work. I assume you are waiting for the 10-404 report to come in. We will definitely send that in, when we get the additional work completed. Chad From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Friday, November 14, 2014 7:15 PM To: Chad Helgeson Subject: FW: SRU 4113-33 Permit to Drill (PTD #214-129) Chad, Stan is out on vacation, so I'm forwarding my request (below) to you. 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: Davies, Stephen F (DOA) Sent: Friday, November 14, 2014 4:13 PM To: Stan Porhola (sporhola(&hilcorp.com) Subject: FW: SRU 416-33 Permit to Drill (PTD #214-129) Stan, I checked again, and still don't see any indication that Hilcorp submitted a Sundry Report for the cementing operation in SRU 34-28. Once this arrives, I can send the Permit to Drill application for SRU 4113-33 along in the review process. Otherwise, a spacing exception is needed for SRU 4113-33. 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: Davies, Stephen F (DOA) Sent: Wednesday, October 29, 2014 10:24 AM To: 'Stan Porhola' Cc: Monty Myers Subject: RE: SRU 416-33 Permit to Drill (PTD #214-129) Hi Stan, Did Hilcorp submit a Sundry Report for the cementing operation in SRU 34-28? The schematic diagram that you provided on October 151h suggests the operation has been completed, but I checked AOGCC's reports log, and I don't see an Sundry Report for SRU 34-28 listed. 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: Stan Porhola [mailto:sporholaCcbhilcorp.com] Sent: Wednesday, October 15, 2014 10:09 AM To: Davies, Stephen F (DOA) Cc: Monty Myers Subject: FW: SRU 41B-33 Permit to Drill (PTD #214-129) Steve, See the attached schematic for the cement details in the SRU 34-28 (PTD 163-007) well. Regards, Stan Porhola I Operations Engineer North Kenai Asset Team Hilcorp Alaska, LLC snorhola@hilcorp.com Office: (907) 777-8412 Mobile: (907) 331-8228 From: Monty Myers Sent: Wednesday, October 15, 2014 10:06 AM To: Stan Porhola Subject: FW: SRU 41B-33 Permit to Drill (PTD #214-129) Can you give this info to Steve? Thanks Stan. Monty M Myers Drilling Engineer Hilcorp Alaska Office: 907.777.8431 Cell: 907.538.1168 From: Davies, Stephen F (DOA) [maiIto: steve.davies@alaska.gov] Sent: Wednesday, October 15, 2014 10:02 AM To: Monty Myers Subject: RE: SRU 4113-33 Permit to Drill (PTD #214-129) Monty, I believe that you have already spoken to Guy today about setting the conductor. Can you give me footages and cement details for the plugs that have been placed in SRU 34-28 to date? 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: Monty Myers [mailto:mmyers(&hilcorp.com] Sent: Tuesday, October 14, 2014 3:30 PM To: Davies, Stephen F (DOA); Schwartz, Guy L (DOA) Cc: David Duffy Subject: RE: SRU 41B-33 Permit to Drill (PTD #214-129) Good afternoon Steve, I asked around to our completions engineers as to where we stand on this plug and abandon, and it turns out that we have in fact done the plug back on the SRU 34-28, but we haven't completed the final tag and pressure test. We are waiting on BLM to get back with us before we proceed with the rest of the plug back on this well. My question is — Does the plug back portion of the well hinder us from drilling the well or producing the well? Can we go ahead and get approval to drill and then suspend operations of completing the well until the SRU 34-28 is P&A'd? The drilling portion of the SRU 416-33 won't happen for a few months from now, but I would like to be able to go ahead and set cellar and conductor prior to the ground freezing in Swanson. Thank you Steve! Greatly appreciate the help. Monty M Myers Drilling Engineer Hilcorp Alaska Office: 907.777.8431 Cell: 907.538.1168 From: Davies, Stephen F (DOA)[maiIto: steve.davies@alaska.gov] Sent: Tuesday, October 14, 2014 10:16 AM To: Monty Myers Cc: David Duffy Subject: SRU 4113-33 Permit to Drill (PTD #214-129) Monty, Approval of the Permit to Drill for SRU 4113-33 is being held pending plugging of SRU 34-28, else a spacing exception will be required. According to AOGCC's documents log Hilcorp has not submitted a Sundry Report for plugging operations in SRU 34-28. Has that well been plugged? 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: Davies, Stephen F (DOA) Sent: Wednesday, September 03, 2014 9:15 AM To: 'David Duffy' Subject: RE: Swanson River - gas well spacing question Hi David, I'm trying to keep all applications moving forward: I don't believe that Hilcorp ever responded to the questions as to the Pool that is currently open to existing well SRU 34-28 and, accordingly, whether or not proposed well SRU 416-33 requires a spacing exception. 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: David Duffy [mailto:dduffyCa>hilcorp.com] Sent: Monday, August 25, 2014 5:26 PM To: Davies, Stephen F (DOA) Subject: RE: Swanson River - gas well spacing question Understand. We'll pull the well file and get back with you ASAP. From: Davies, Stephen F (DOA) [ma iIto: steve.daviesC'Oalaska.gov] Sent: Monday, August 25, 2014 5:20 PM To: David Duffy Subject: RE: Swanson River - gas well spacing question David, Unocal's Sundry Report (#308-183) for SRU 34-28 states "Swanson River / Tyonek Undef Gas" in the "Field/Pool(s)" box on the form. 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: David Duffy [mailto:dduffy@hilcorp.com] Sent: Monday, August 25, 2014 5:16 PM To: Davies, Stephen F (DOA) Subject: RE: Swanson River - gas well spacing question Hi Steve, I took a quick look into SRU 34-28 — and think that's a shut-in Hemlock oil well. I'll get with the technical folks tomorrow to confirm. Thanks for the fast response. David From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Monday, August 25, 2014 4:52 PM To: David Duffy; John Serbeck Cc: Kevin Tabler Subject: RE: Swanson River - gas well spacing question David, John: AOGCC's database also indicates that SRU 41B-33 will be within about 1750' of existing well SRU 34-28 (PTD #163- 007). The latest item in AOGCC's well history file for SRU 34-28 is a Report of Sundry Well Operations (Sundry #308-183) dated 2008 that indicates SRU 34-28 has perforations that are still open to (i.e., capable of producing from) the Tyonek undefined gas pool. Or am I overlooking something? Lacking Pool Rules, AOGCC's practice is to consider each entire formation as an undefined pool (e.g., Sterling undefined pool, Beluga undefined pool, Tyonek undefined pool, and so on). So, it appears as though an exception to 20 AAC 25.055(a)(4) will be required to drill and complete SRU 4113-33. Thanks, Steve Davies AOGCC From: David Duffy [mailto:dduffy(§)hilcorp.com] Sent: Friday, August 22, 2014 2:43 PM To: Davies, Stephen F (DOA) Cc: John Serbeck; Kevin Tabler Subject: Swanson River - gas well spacing question Steve, Hilcorp is planning a vertical grass roots drill well at Swanson River targeting Tyonek gas sands. Primary target is the 56- 9 Sand (deepest); secondary target is the 54-5 sand (shallowest). Currently, there are no pool rules in place to govern gas production at the Swanson River field. I am working on a new proposal now - but in the meanwhile, we need some clarification as to the definition of "pool." As you know, the ownership and regulatory history of Swanson River is complicated. In 1963, Union, Standard, Richfield and Marathon entered into a cooperative agreement to combine/merge the Swanson River Unit and the Soldotna Creek Unit. This was accomplished by a calculation of equity based on oil and gas sand volumes in both units. Since then, BLM has established 20 different Participating Areas. These PA's are based on "pools' — defined by and correlating to specific sands. The table below provides a good summary. Unit PA POOL Sands I Depth (top) Swanson River Sterling -Upper Beluga PA B Zone #2 2,600 Soldotna Creek Sterling -Upper Beluga PA B Zone #2 B0,132,133,B5 2,600 Swanson River Sterling -Upper Beluga PA B Zone #1 2,800 Swanson River Beluga PA C Zone #1 4,900 Soldotna Creek Beluga PA C Zone #2 unnamed Beluga 4,800 Soldotna Creek Tyonek PA D Zone #1 56-9, 58-1,59-2 5,400 Swanson River Beluga PA C Zone #3 54-5 5,800 Soldotna Creek Tyonek PA D Zone #2 56-9,58-1,59-2 5,600 Swanson River Beluga PA C Zone #4 6,230 Swanson River Tyonek PA D Zone #4 61-8 6,260 Swanson River Tyonek PA D Zone #5 62-5 6,200 Swanson River Tyonek PA D Zone #6 64-5 6,370 Swanson River Tyonek PA D Zone #3 61-3 6,350 Swanson River Tyonek PA D Zone #8 65-7 6,525 Swanson River Tyonek PA D Zone #7 68-0 7,100 77-3 sec9 41 b-09, 43- Soldotna Creek Tyonek PA E Zone #3 05,53A-05 7,380 Swanson River Tyonek PA E Zone #1 7,600 Soldotna Creek Tyonek PA E Zone #4 77-3 at 42A-05 7,970 Swanson River Tyonek PA E Zone #2 77-3 8,050 For the proposed well (SRU 416-33), the nearest well producing from "Tyonek" is 2888' away. However, that well (KGSF7A) is a gas injection well — and it is limited to the 64-5 sand zone (D Zone #6). As referenced above, our proposed gas production well will target 56-9 Sands (Tyonek) and 54-5 sand (Beluga). Under this scenario, would a spacing exception be required? If you need more technical information, feel free to contact John Serbeck (geologist). Otherwise, I'd really appreciate a chance to discuss this early next week. Thanks, 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. 7 Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Monday, January 26, 2015 9:55 AM To: Schwartz, Guy L (DOA) Subject: FW: SRU 4113-33 Permit to Drill (PTD #214-129) Guy, Below is the last communication that I have from Hilcorp regarding SRU 4113-33. Unless nearby well SRU 34-28 is plugged back, Hilcorp needs a spacing exception to drill and complete SRU 41B- 33. According to AOGCC's docket list, Hilcorp has not submitted a spacing exception application for SRU 41B-33. As of November 14t", SRU 34-28 had not been plugged back because BLM asked Hilcorp to accomplish additional tasks. Sundry Application #314-677 (approved on 12/23/2014 and returned to Hilcorp on 12/29/2014) granted approval to plug perforations in SRU 34-28. AOGCC's records* indicate that Hilcorp has not submitted a corresponding Sundry Report demonstrating those planned plugging operations were successfully completed. Please let me know if you have any questions or if I can help further. Regards, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 AOGCC: 907-279-1433 Fax: 907-276-7542 333 west 7*t' Avenue, Suite 100 Anchorage, AK 99501 * AOGCC's RBDMS database and AOGCC's Sundry Report logs for 2014 and 2015—checked 1/26/2015 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: Chad Helgeson [mailto:chelgeson@hilcorp.com] Sent: Friday, November 14, 2014 4:39 PM To: Davies, Stephen F (DOA) Subject: RE: SRU 41B-33 Permit to Drill (PTD #214-129) Steve, We have not finished the plugback work on the 34-28. The BLM is asking us to do some additional activities, so we haven't completed the plugback work. I assume you are waiting for the 10-404 report to come in. We will definitely send that in, when we get the additional work completed. Davies, Stephen F (DOA) From: Chad Helgeson <chelgeson@hilcorp.com> Sent: Friday, November 14, 2014 4:39 PM To: Davies, Stephen F (DOA) Subject: RE: SRU 4113-33 Permit to Drill (PTD #214-129) Steve, We have not finished the plugback work on the 34-28. The BLM is asking us to do some additional activities, so we haven't completed the plugback work. I assume you are waiting for the 10-404 report to come in. We will definitely send that in, when we get the additional work completed. Chad From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Friday, November 14, 2014 7:15 PM To: Chad Helgeson Subject: FW: SRU 4113-33 Permit to Drill (PTD #214-129) Chad, Stan is out on vacation, so I'm forwarding my request (below) to you. 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: Davies, Stephen F (DOA) Sent: Friday, November 14, 2014 4:13 PM To: Stan Porhola (sporhola@hilcorp.com) Subject: FW: SRU 4113-33 Permit to Drill (PTD #214-129) Stan, I checked again, and still don't see any indication that Hilcorp submitted a Sundry Report for the cementing operation in SRU 34-28. Once this arrives, I can send the Permit to Drill application for SRU 4113-33 along in the review process. Otherwise, a spacing exception is needed for SRU 418-33. 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 Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Friday, November 14, 2014 4:13 PM To: Stan Porhola (sporhola@hilcorp.com) Subject: FW: SRU 416-33 Permit to Drill (PTD #214-129) Stan, I checked again, and still don't see any indication that Hilcorp submitted a Sundry Report for the cementing operation in SRU 34-28. Once this arrives, I can send the Permit to Drill application for SRU 4113-33 along in the review process. Otherwise, a spacing exception is needed for SRU 418-33. 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: Davies, Stephen F (DOA) Sent: Wednesday, October 29, 2014 10:24 AM To: 'Stan Porhola' Cc: Monty Myers Subject: RE: SRU 4113-33 Permit to Drill (PTD #214-129) Hi Stan, Did Hilcorp submit a Sundry Report for the cementing operation in SRU 34-28? The schematic diagram that you provided on October 15"' suggests the operation has been completed, but I checked AOGCC's reports log, and I don't see an Sundry Report for SRU 34-28 listed. 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: Stan Porhola [mailto:sporhola@hilcorp.com] Sent: Wednesday, October 15, 2014 10:09 AM To: Davies, Stephen F (DOA) Cc: Monty Myers Subject: FW: SRU 4113-33 Permit to Drill (PTD #214-129) Steve, Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Wednesday, October 29, 2014 10:24 AM To: 'Stan Porhola' Cc: Monty Myers Subject: RE: SRU 4113-33 Permit to Drill (PTD #214-129) Hi Stan, Did Hilcorp submit a Sundry Report for the cementing operation in SRU 34-28? The schematic diagram that you provided on October 15`" suggests the operation has been completed, but I checked AOGCC's reports log, and I don't see an Sundry Report for SRU 34-28 listed. 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: Stan Porhola [mailto:sporhola@hilcorp.com] Sent: Wednesday, October 15, 2014 10:09 AM To: Davies, Stephen F (DOA) Cc: Monty Myers Subject: FW: SRU 4113-33 Permit to Drill (PTD #214-129) Steve, See the attached schematic for the cement details in the SRU 34-28 (PTD 163-007) well. Regards, Stan Porhola I Operations I n ineer € iUi Kenai Asset `1"eani Hilcorp Alaska, LLC snorhola@hilcorn.com J From: Monty Myers Sent: Wednesday, October 15, 2014 10:06 AM To: Stan Porhola Subject: FW: SRU 416-33 Permit to Drill (PTD #214-129) Can you give this info to Steve? Thanks Stan. Davies, Stephen F (DOA) From: Stan Porhola <sporhola@hilcorp.com> Sent: Wednesday, October 15, 2014 10:09 AM To: Davies, Stephen F (DOA) Cc: Monty Myers Subject: FW: SRU 4113-33 Permit to Drill (PTD #214-129) Attachments: SRU 34-28 Actual Schematic 9-24-14.doc Steve, See the attached schematic for the cement details in the SRU 34-28 (PTD 163-007) well. Regards, Stan Porhola I Operations Engineer North Kenai Asset Team Hilcorp Alaska, LLC sporhola(thilcorp.com Office: (907) 777-8412 Mobile: (907) 331-8228 From: Monty Myers Sent: Wednesday, October 15, 2014 10:06 AM To: Stan Porhola Subject: FW: SRU 41B-33 Permit to Drill (PTD #214-129) Can you give this info to Steve? Thanks Stan. Monty M Myers Drilling Engineer Hilcorp Alaska Office: 907.777.8431 Cell: 907.538.1168 From: Davies, Stephen F (DOA)[maiIto: steve.davies(&alaska.aovl Sent: Wednesday, October 15, 2014 10:02 AM To: Monty Myers Subject: RE: SRU 4113-33 Permit to Drill (PTD #214-129) Monty, I believe that you have already spoken to Guy today about setting the conductor. Can you give me footages and cement details for the plugs that have been placed in SRU 34-28 to date? Thanks, Steve Davies AOGCC Swanson River Unit ACTUAL SCHEMATIC Well: SRU 34-28 Completion Ran: 5/15/1963 API: 50-133-10158-00 PTD: 163-007 RKB: 184' / GL: 164' AMSL KB - THF: 20.05' 22" 34' 11-3/4" 5' 2,038' CBL TOC 2,950' 5 , a Damaged ;"" GLM 5,526'a Newi Cement 6,145' Soft Cement 6,197' Cement 6, 255' Top of Fill 6, 289' CBLTOC 8,930' y CBL TO 5,800' Sqz B 62-4 62-5 Sqz A Casing Detail Size Type Wt Grade Conn Top Btm Hole Cmt Cr Top 22" Conductor - - - Surf. 34' - Yes Surf. 11-%,1 Surface 47 J-55 STC Surf. 2,038' 2 040, 1,400 sx Surf. 7" Production 29 N-80 BTC Surf. 104' 9 10,880' 1,100 sx 2,950' CBL 23 104' 4,618' 26 1 LTC 4,618' 6,016' DV Collar 6,016' 6,018' 7" Production 26 N-80 LTC 6,018' 6,616' 700 sx 8,930' CBL 29 6,616' 8,495' 29 P-110 8,495' 10,880' Tubing Detail Conn ID CpIgOD 2.875" 1 Tubing 6.5 N-80 I BIRD Surface 10,755' 2.441" 3.668" Jewelry Detail No. Depth Length ID CID Item 1 20.05' 1.70' 2.441" - Tbg Hngr 2 1,498' 12.82' 2.867" 5.968" 3-1/2" Camco MM GLM #12, XO to 2-7/8" 3 2,484' 12.79' 2.867" 5.968" 3-1/2" Camco MM GLM #11, XO to 2-7/8" 4 3,489' 12.72' 2.867" 5.968" 3-1/2" Camco MM GLM #10, XO to 2-7/8" 5 3,701' 12.77' 2.867" 5.968" 3-1/2" Camco MM GLM #9, XO to 2-7/8" 6 4,059' 13.05' 2.867" 5.968" 3-1/2" Camco MM GLM #8, XO to 2-7/8" 7 4,354, 13.00' 2.867" 5.968" 3-1/2" Camco MM GLM #7, XO to 2-7/8" 8 5,526' 13.08' 2.867" 5.968" 3-1/2" Camco MM GLM #6, XO to 2-7/8" (Drift w/ 2.343") 9 6,517' 13.05' 2.867" 5.968" 3-1/2" Camco MM GLM #5, XO to 2-7/8" 10 6,550' - - 2.180" HES "EZ" Drill Cmt Retainer (Set on wireline 6/14/04) 11 7,411' 12.77' 2.867" 5.968" 3-1/2" Camco MM GLM #4, XO to 2-7/8" 12 8,146' 13.03, 2.867" 5.968" 3-1/2" Camco MM GLM #3, XO to 2-7/8" 13 9,387' 12.69' 2.867" 5.968" 3-1/2" Camco MM GLM #2, XO to 2-7/8" 14 10,598' 12.74' 2.867" 5.968" 3-1/2" Camco MM GLM #1, XO to 2-7/8" 15 10,643' 1.07' 2.438" 3.688" Brown CC Safety Joint 16 10,652' 6.02' 2.500" 5.875" Brown Retrievable Production Packer, Model HS-16-1 17 10,676' - - 2.180" HES "EZ" Drill Cmt Retainer (Set on wireline 6/09/04) 18 10,690' 0.95' 2.250" 3.668" Camco"D" Profile Nipple, w/ Stuck Plug (Fish) 19 10,755' 0.67' 2.441" 3.688" WLEG Venturi Shoe "-, Tbg Punch 93' 10,163' iTbg Punct 10,681' i Top of Fill 11+. ti,ti H-1 10,738' ' -` • 19 f 4r. •�:a'r{ ar{r{i{7'{ {i{r H-2 10,880 TD = 10,880' PBTD = 10,832' Max Deviation = 1.5 deg @ 4,345' Downhole Revised: 9/24/14 Perforation History Date Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) Amt spf Comments 6/19/04 Sqz B 6,235' 6,245' 6,235' 6,245' 10, 4 2" PowerJet 7/01/08 62-4 6,244' 6,254' 6,244' 6,254' 10' 6 OPEN 6/25/04 62-5 6,260' 6,270' 6,260' 6,270' 10, 6 Isolated 8/22/04 62-5 6,265' 6,275' 6,265' 6,275' 10, 6 Isolated 6/17/04 Sqz A 6,335' 6,345' 6,335' 6,345' 10' 4 2" PowerJet 5/11/63 WSO 10,707' 10,708' 10,707' 10,708' 1' S Isolated 5/13/63 H-1 10,716' 10,725' 10,716' 10,725' 9' 4 Isolated 5/13/63 H-2 10,737' 10,762' 10,737' 10,762' 25' 4 Isolated Revised By STP 9/25/14 Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Wednesday, September 03, 2014 9:15 AM To: 'David Duffy' Subject: RE: Swanson River - gas well spacing question 1. • I'm trying to keep all applications moving forward: I don't believe that Hilcorp ever responded to the questions as to the Pool that is currently open to existing well SRU 34-28 and, accordingly, whether or not proposed well SRU 41B-33 requires a spacing exception. 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: David Duffy [mailto:dduffy@hilcorp.com] Sent: Monday, August 25, 2014 5:26 PM To: Davies, Stephen F (DOA) Subject: RE: Swanson River - gas well spacing question Understand. We'll pull the well file and get back with you ASAP. From: Davies, Stephen F (DOA)[mailto:steve.davies@alaska.gov] Sent: Monday, August 25, 2014 5:20 PM To: David Duffy Subject: RE: Swanson River - gas well spacing question David, Unocal's Sundry Report (#308-183) for SRU 34-28 states "Swanson River / Tyonek Undef Gas" in the "Field/Pool(s)" box on the form. 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.daviesCcilalaska.gov. Davies, Stephen F (DOA) From: David Duffy <dduffy@hilcorp.com> Sent: Monday, August 25, 2014 5:26 PM To: Davies, Stephen F (DOA) Subject: RE: Swanson River - gas well spacing question Understand. We'll pull the well file and get back with you ASAP. From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Monday, August 25, 2014 5:20 PM To: David Duffy Subject: RE: Swanson River - gas well spacing question David, Unocal's Sundry Report (#308-183) for SRU 34-28 states "Swanson River / Tyonek Undef Gas" in the "Field/Pool(s)" box on the form. 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: David Duffy [mailto:dduffyC&hilcorp.com] Sent: Monday, August 25, 2014 5:16 PM To: Davies, Stephen F (DOA) Subject: RE: Swanson River - gas well spacing question Hi Steve, I took a quick look into SRU 34-28 — and think that's a shut-in Hemlock oil well. I'll get with the technical folks tomorrow to confirm. Thanks for the fast response. David From: Davies, Stephen F (DOA) [mailto:steve.davies(a alaska.gov] Sent: Monday, August 25, 2014 4:52 PM To: David Duffy; John Serbeck Cc: Kevin Tabler Subject: RE: Swanson River - gas well spacing question David, John: Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Monday, August 25, 2014 4:52 PM To: 'David Duffy'; John Serbeck Cc: 'ktabler@hilcorp.com' Subject: RE: Swanson River - gas well spacing question David, John: AOGCC's database also indicates that SRU 4113-33 will be within about 1750' of existing well SRU 34-28 (PTD #163- 007). The latest item in AOGCC's well history file for SRU 34-28 is a Report of Sundry Well Operations (Sundry #308-183) dated 2008 that indicates SRU 34-28 has perforations that are still open to (i.e., capable of producing from) the Tyonek undefined gas pool. Or am I overlooking something? Lacking Pool Rules, AOGCC's practice is to consider each entire formation as an undefined pool (e.g., Sterling undefined pool, Beluga undefined pool, Tyonek undefined pool, and so on). So, it appears as though an exception to 20 AAC 25.055(a)(4) will be required to drill and complete SRU 4113-33. Thanks, Steve Davies AOGCC From: David Duffy [mailto:dduffy@hilcorp.com] Sent: Friday, August 22, 2014 2:43 PM To: Davies, Stephen F (DOA) Cc: John Serbeck; Kevin Tabler Subject: Swanson River - gas well spacing question Steve, Hilcorp is planning a vertical grass roots drill well at Swanson River targeting Tyonek gas sands. Primary target is the 56- 9 Sand (deepest); secondary target is the 54-5 sand (shallowest). Currently, there are no pool rules in place to govern gas production at the Swanson River field. I am working on a new proposal now - but in the meanwhile, we need some clarification as to the definition of "pool." As you know, the ownership and regulatory history of Swanson River is complicated. In 1963, Union, Standard, Richfield and Marathon entered into a cooperative agreement to combine/merge the Swanson River Unit and the Soldotna Creek Unit. This was accomplished by a calculation of equity based on oil and gas sand volumes in both units. Since then, BLM has established 20 different Participating Areas. These PA's are based on "pools" — defined by and correlating to specific sands. The table below provides a good summary. Unit PA POOL Sands Depth (top) Swanson River Sterling -Upper Beluga PA B Zone #2 2,600 Soldotna Creek Sterling -Upper Beluga PA B Zone #2 BO,B2,B3,B5 2,600 Swanson River Sterling -Upper Beluga PA B Zone #1 2,800 Swanson River Beluga PA C Zone #1 4,900 Soldotna Creek Beluga PA C Zone #2 unnamed Beluga 4,800 Soldotna Creek Tyonek PA D Zone #1 56-9, 58-1,59-2 5,400 Swanson River Beluga PA C Zone #3 54-5 5,800 Soldotna Creek Tyonek PA D Zone #2 56-9,58-1,59-2 5,600 Swanson River Beluga PA C Zone #4 6,230 Swanson River Tyonek PA D Zone #4 61-8 6,260 Swanson River Tyonek PA D Zone #5 62-5 6,200 Swanson River Tyonek PA D Zone #6 64-5 6,370 Swanson River Tyonek PA D Zone #3 61-3 6,350 Swanson River Tyonek PA D Zone #8 65-7 6,525 Swanson River Tyonek PA D Zone #7 68-0 7,100 77-3 sec9 41 b-09, 43- Soldotna Creek Tyonek PA E Zone #3 05,53A-05 7,380 Swanson River Tyonek PA E Zone #1 7,600 Soldotna Creek Tyonek PA E Zone #4 77-3 at 42A-05 7,970 Swanson River Tyonek PA E Zone #2 77-3 8,050 For the proposed well (SRU 4113-33), the nearest well producing from "Tyonek" is 2888' away. However, that well (KGSF7A) is a gas injection well — and it is limited to the 64-5 sand zone (D Zone #6). As referenced above, our proposed gas production well will target 56-9 Sands (Tyonek) and 54-5 sand (Beluga). Under this scenario, would a spacing exception be required? If you need more technical information, feel free to contact John Serbeck (geologist). Otherwise, I'd really appreciate a chance to discuss this early next week. Thanks, David Duffy, Landman Hilcorp Alaska, LLC Direct: 907-777-8414 Cell: 907-301-2629 dduffv@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. 2 iRU 223.28 SRU_21.33WD SRU 23.33 3 1433 SRU 238-22 SRU 23.22 PL_SRU-34.22 SRU 331.27 SRU 21.27 SRU_12.27 �- SRU_32-27 KGSF7 KGSF3 SRU 21j-27 KGSF2 SRU 43-28 SRU 13.27 KGSF7 7q S 25 2888' SCU 241B-33 to KGSF7A J SRU_314-27PS2 SRU_314.27 SRU_34-28 41 1 co (DO SRU_314.27PRI %U 148 T• SRU_31.33WD _ SRU_21A-34 SRU_41.33 • SRU_41-33WD PL SRU 41833 SRU 32-33WD SRU_12-34 SRU 32A-33 SRU 32.33 SRU_23-27 SRU 2134 SCU 43A-33 • SCU_343-33, SCU_13.34 SCU 33-33 /c SCU_1434 SRU_2433 SCU_44833 ew4'S�'fV SCU 2434 SCLL3443 � 0 SCU 4433 CU_34833 Redacted M. Guhl 9/2/2021 TRANSMITTAL LETTER CHECKLIST WELL NAME: PTD: 2_17 /Development Service Exploratory _ Stratigraphic Test _ Non -Conventional FIELD: r✓�-�Jcsy11 J��'✓ POOL: Check Box for Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI LATERAL The permit is for a new wellbore segment of existing well Permit (If last two digits No. , 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 (name of well) until after (Company Name) has designed and Well implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the AOGCC to obtain advance approval of such water well testing program. Regulation 20 AAC 25.071(a) authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by (Company Name) in the attached application, the following well logs are 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 SWANSON RIVER, TYONEK UNDF GAS - 7725C Well Name: SWANSON RIV UNIT 41 B-33 Program DEV Well bore seg PTD# 2141290 Company HILCORP ALASKA LLC Initial Class/Type DEV / PEND GeoArea 820 Unit 51994 On/Off Shore On Annular Disposal Administration 1 Perm it_fee attached- - - NA --- --- ----- 2 Lease_number appropriate_ - - Yes - - _ - - Entire well within former Federal Lease -(now Hilcorp Fee Lease) FEDA028399- - - - - - 3 er . _ Unique well name and numb --- ----------- ------ ------------------ Yes 4 Well located in a defined.pool- No_ - - - - - - Swanson_ River Tyonek Undefined Gas Pool - - - - 5 Well -located proper distance from drilling unit_b_oundary Yes - More than 3000' from Swanson River Unit boundary. 6 Well -located proper distance_ from other wells_ - - - - - - - _ _ Yes- - . - 8/25/14_: _Request from Operator_status_of nearby well SRU 34-28:_ open to pool -or not? _Repeat requests - - _ - 7 Sufficient acreage -available in-dril_ling unit_ - - - - - _ _ - - Yes - - - made-9/3/14, 10/14,14, 10/29/14, and 1/26/15. _2/1.3: Receive Well Operations Summary for SRU 34-28,_ 8 If_deviated, is_wellbore plat -included--- - - - - - - - - - - _ _ ------------- - NA_ which_ reports that SRU 34-28 well was plugged _with cement, and thenpressure tested successfully on_2/3/15. SD 9 Operator only affected party_ Yes 10 Operator has- appropriate -bond in force - - _ _ _ _ - - - Yes _ 11 Permit_can be issued without conservation order - - - - - N_o_ - - _ _ _ _ _ _ _ _ --- -- -- --------- Appr Date 12 Permit can be issued without administrative approval - - _ Yes - - - - _ - - - - - - - - - - - - SFD 15 13 -Can permit be approved before 15-day wait_ . _ Yes _ - - ----------- 14 Well -located within area and -strata authorized by Injection Order # (put_ 10# in_comments)-(For_; _N_A_ - . - - - - - - - 15 _All Wells -within 1/4_mile-area_of review identified (For service well only)_ N_A_ 16 Pre -produced injector; duration -of pre production Less than 3 months_ (For service well only) NA - _ _ - _ - - - - - - - - - - - - - - - - - 17 Nonconven. gaps conforms to. AS31.05,0300,.1_.A),(j.2.A-D) _ NA_ _ - - - - - - - - - - - - - - - - - - - - _ - - - - - 18 _Coonductor string_ Yes 16" con_ductor_drive_n to 80 ft md-- Engineering 19 Surface casing_ protects all -known USDWs - - - - - - Yes _ _ Surface casing set at 3000 ft and VD) (3000 ft T 20 CMT_vol -adequate to circulate -on conductor & surt_csg - _ _ - - - - - Yes - - - surface casing will be fully cemented._ - - - - - - - - 21 CMT.vol adequate to tie-in_long string to surf csg_ - _ ----------------- - - - --- - Yes - - - - - 5.5"_c_asing will be cemented back to 2500 ft. and use swell packer. - - - - - - 22 _C_MTwill coverall known -productive horizons_ - _ - - - _ _ Yes 23 Casing designs adequate for C,_T, B &_ permafr_ost_ - - - - Yes BTC calc provided _ - p - 24 Adequate tankage_ or reserve pit ------ - Yes Rig has steel pits..._ All. waste to approved disposal at KGF G &_ I or reused. 25 If -a. re -drill, has a 1.0-403 for abandonment been approved - N_A_ - - - - - - Grassroots well ... vertical_ 26 Adequate wellbore separation _proposed - _ _ - - - _ - Yes - Vertical well. _ 27 If_diverter required, does it meet_ regulations _ _ - - - - - - - - - - - Yes - - - - - - - Saxon 169_ has 16" diverter...-schematic of_ layout_provided. _ ---------- Appr Date 28 Drilling fluid_ program schematic_& equip -list -adequate - - - ----- ----- - Yes - - - Max formation_ press= 2880_psi_(8.4 ppg EMW) Will drill with 9,57 11- ppg mud GLS 8/27/2014 'I29 BOPEs,-do they meet regulation - - - - - - - - - - - - - - - - _ _ - - - Yes - - - - - - - Saxon 169_has 11"_5000 psi BOPS 30 _B_OPE-press rating appropriate; test to -(put psig in comments)_ - - _ - _ _ - - - - - Yes - - - MASP= 22.30 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 - . _ - Separate sundry required for perforating and_compl_et_ion. 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 - H2S not reported fr_om_Swanson River Field._ Geology 36 Data presented on potential overpressure zones _ - - - - - - - - - - - - - - Yes _ - - - - - Shallow gas not expected -based -on nearby wells._ Proposed drilling fluids. program appears sufficient - - - Appr Date 37 Seismic -analysis of shallow gas_zones_ - - - - - - _ _ - - - NA- _ - - - - - t_o control the operator's most -likely and -maximum expected_ formation- pressures forecasts_. SFD 8/25/2014 38 Seabed condition survey -(if off -shore) - - _ - - - - - - - NA_ 39 Contact name/phone for weekly_ progress reports_ [exploratory only] N_A_ Geologic Date: Engineering Date Public Grassroots well... cement packer completion. GLS Spacing exception NOT required; nearby well SRU 34-28 plugged with cement Date Commissioner: �1T,y z11?1 jS Commissioner: � z�s-�S Commissioner and pressure tested Feb. 3, 2015. SFD 2/13/2015 is �11- ,z-
