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HomeMy WebLinkAbout215-065Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Tuesday, April 25, 2017 1:11 PM To: Larry Vendl Cc: Bettis, Patricia K (DOA); Schwartz, Guy L (DOA) Subject: SMU M-04, PTD 215-065, Permit Expired Hello Mr. Vendl, Permit to Drill 215-065, for Southern Miluveach Field M-04, issued 17 April 2015, has expired under Regulation 20 AAC 25.005 W. The PTD will be marked expired in the AOGCC database. If you have any questions, please contact me. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave, Anchorage, AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. r- THE STATE °fALASKA GOVERNOR BILL WALKER Dan Shearer Drilling Manager Brooks Range Petroleum 510 L Street, Suite 601 Anchorage, AK 99501 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.olaska.gov Re: Southern Miluveach Field, S. Miluveach and Kuparuk River Oil Pools, SMU M-04 Brooks Range Petroleum Corporation Permit No: 215-065 Surface Location: 2408' FSL, 1723' FEL, SEC. 2, T14N, R7E, UM Bottomhole Location: 3369' FSL, 3192' FEL, SEC. 35, T11N, R7E, UM Dear Mr. Shearer: Enclosed is the approved application for permit to drill the above referenced development well. 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. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or an 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 I � d of April, 2015. RECEIVED STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 AAC 25.005 APR 10 2015 AOGCC 1 a. Type of Work: 1 b. Proposed Well Class: Development - Oil ❑✓ • Service - Winj ❑ Single Zone 0 • 1 c. Specify if well is proposed for: Drill I] - Lateral ❑ Stratigraphic Test ❑ Development - Gas ❑ Service - Supply ❑ Multiple Zone ❑ Coalbed Gas ❑ Gas Hydrates ❑ Redrill ❑ Reentry ❑ Exploratory ❑ Service - WAG ❑ Service - Disp ❑ Geothermal ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket - Single Well ❑ 11. Well Name and Number: Brooks Range Petroleum Corporation Bond No, LPM 8842179 • SMU M-04 3, Address: 6. Proposed Depth: 12. Field/Pool(s): 510 L St. Suite 601, Anchorage Alaska 99501 MD: 12,082' ' TVD: 6.208' Southern Miluveach Unit S Miluveach, 4a. Location of Well (Governmental Section): 7, Property Designation (Lease Number): Surface: 2408 FSL 1723 FEL S2 T10N R7E UM AOL 390680, 390691 Kuparuk River Oil - 764150 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 4334 FSL 3868 FEL S2 T10N R7E UM LAS 27505 4/27/2015 Total Depth: 9. Acres in Property: 14. Distance to Nearest Property: 3368 FSL 3192 FEL S35 T11 N R7E UM 2;360'— S�40 2.831' 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10, KB Elevation above N 108 feet 15. Distance to Nearest Well Open Surface: x - 465255.45 y - 5940791.9 , Zone 4 GL Elevation above N 73.9 feet to Same Pool: 4772' SMU M-02 16. Deviated wells: Kickoff depth: 500 feet ' 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 90.96 degrees Downhole: 3,767 psig , Surface: 3,163 psig . 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) 42" Insul 20" 91.5 A-53 Weld 80, Surface Surface 110, 110, 260 Sx ArcticCem (Approx) 754 TOTAL Sacks 12 1/4" 9 5/81, 40 L-80 BTC 2,532' Surface Surface 2,506' 2,508' LEAD: 524 sx 10.7 ppg Permafrost L TAIL: 229 sx 15.8 ppg SwiftCem 8 3/4" 7" 26 L-80 BTC-M 7,269' Surface Surface 7,343' 6,048' LEAD: 67 sx 13 ppg VariCem TOC: 6,843' MD/ 5,860' TVD 6 1/8" 1 4 1/2" 12.6 1 L-80 H521 4,889' 7,193' 1 5,998' 1 12,082' 1 6,208, Slotted Liner 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 ❑r BOP Sketch [w] Drilling Program Time v. Depth Plot ❑ Shallow Hazard Analysis❑Z Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program 20 AAC 25,050 requirementslo 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is true and correct. Contact Email Printed Name Shearer Title Drilling Manager / In ���f �----^ Signature (�/ Phone 907-887-4995 Date 4/9/2015 Commission Use Only Permit to Drill 15 ' 10 API Number: Permit Approval See cover letter for other Number: s 50. 03 — ti — Date: requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed math", gas hydrates, or gas contained in shales: Other: y �Q� S ` �� (� �S ? (T Samples req'd: Yes ❑ A Nc[l� Mud log req'd: Yes[] N� H2S measures: Yes ® NC Directional svy req'd: Yew Nc 5"�-t_Lt L� ✓`y �� E` e l f /---k Spacing exception req'd: Yes ❑ NcM/ Inclination -only svy req'd: YesO Ncla co A't /fk ul-11-6 , °z`r- APPROVED BY Approved by COMMISSIONER THE COMMISSION Date: — 1 _ _57- --(_/7-1 r«-rllyll 5 Submit Form and Fo(-R evised 10/2012) This permit is valid for 24 months from the date of approval (20 AAC 26.006(g)) Attachments In Duplicate IGINAL RECEIVED APR 10 2015 AOGCC Brooks Range Petroleum 510 L St #601, Anchorage, AK 9950 Dan Shearer Phone (907) 865-5815 Email: dshearer@brpcak.com April 9, 2015 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill Horizontal Production Well SMU M-04 Dear Commissioners, Brooks Range Petroleum Corp. hereby applies for a Permit to Drill for the onshore horizontal production well SMU M-04. This well will be drilled and completed using Nabors 16E. The planned spud date could be as early as 04/27/2014, Brooks Range Petroleum Corp. would also like to request a 14 day BOP test schedule at the AOGCC's discretion. Please find attached for the review of the Commission forms 10-401 and the information required by 20 ACC 25.005 for this well bore. If you have any questions or require further information, please contact Joseph Longo at 907-947- 4323. Sincerely, Dan Shearer Drilling Manager Brooks Range Petroleum Application for Permit to Drill Document Water Injection Well SMU M-04 Table of Contents 1. Well Name................................................................................................................. 3 Requirementsof 20 AAC 25.005(f)............................................................................................................ 3 2. Location Summary...................................................................................................... 3 Requirements of 20 AAC 25.005(c)(2)........................................................................................................ 3 Please see Attachment 9: Surface Platt...................................................................................................... 3 Requirements of 20 AAC 25.050(b)............................................................................................................ 3 3. Blowout Prevention Equipment Information................................................................. 4 Requirements of 20 AAC 25.005(c)(3)........................................................................................................ 4 4. Drilling Hazards Information........................................................................................ 4 Requirementsof 20 AAC 25.005 (c)(4)....................................................................................................... 4 S. Procedure for Conducting Formation Integrity Tests ...................................................... 4 Requirements of 20 AAC 25.005 (c)(5)....................................................................................................... 4 6. Casing and Cementing Program................................................................................... 6 Requirementsof 20AAC25.005(c)(6)........................................................................................................ 5 7. Diverter System Information....................................................................................... 6 Requirements of 20AAC25.005(c)(7)........................................................................................................ 5 8. Drilling Fluid Program................................................................................................. 6 Requirementsof 20AAC25.005(c)(8)........................................................................................................ 6 9. Abnormally Pressured Formation Information.............................................................. 7 Requirements of 20AAC25.005 (c)(9)....................................................................................................... 7 10. Seismic Analysis......................................................................................................... 7 Requirements of 20AAC25.005 (c)(10)..................................................................................................... 7 11. Seabed Condition Analysis.......................................................................................... 7 Requirements of 20AAC25.005 (c)(11)..................................................................................................... 7 12. Evidence of Bonding................................................................................................... 7 Requirements of 20AAC25.005 (c)(12)..................................................................................................... 7 SMU M-04 10-401 APD Page 1 of 10 Printed: 9-Apr-15 Brooks Range Petroleum 13. Proposed Drilling Program.......................................................................................... 8 Requirements of 20 AAC 25.005 (c)(13)..................................................................................................... 8 14. Discussion of Mud and Cuttings Disposal and Annular Disposal .................................... 10 Requirements of 20 AAC 25.005 (c)(14)................................................................................................... 10 15. Attachments............................................................................................................ 10 Attachment 1 Drilling Procedure ............................................ Attachment 2 Directional Plan ............................................... Attachment 3 Drilling Fluid Program ...................................... Attachment 4 Drilling Hazards Summary ................................ Attachment 5 Formation Integrity And Leak Off Test Procedure Attachment 6 BOP and Diverter Configuration ........................ Attachment 7 Wellhead & Tree Configuration ......................... Attachment 8 Surface Platt ................................................... ........................... ...... ... I........... 10 ................................................... 10 ........... ..... ........ I............................. 10 .... ............................ ... ......... I ........ . 10 ...................................................... 10 ................. ........ I.,.......................... 10 ...................................................1.1 10 ...................................................... 10 SMU M-04_ 10-401 APD Page 2 of 10 Printed: 9-Apr-15 Brooks Range Petroleum 1. Well Name Requirements of 20AAC25.005 (f) Each well must be identified by a unique name designated by the operator and a unique API number assigned by the commission under 20 AAC 25.040(b). For a well with multiple well branches, each branch must similarly be identified by a unique name and API number by adding a suffix to the name designated for the well by the operator and to the number assigned to the well by the commission. Well Name: SMU M-04 2. Location Summary Requirements of 20 AAC 25.005(c)(2) An application for a Permit to Drill must be accompanied by each of the following items, except for on item already on file with the commission and identified in the application: (2) a plat identifying the property and the property's owners and showing (A)the coordinates of the proposed location of the well at the surface, at the top of each objective formation, and at total depth, referenced to governmental section lines. (B) the coordinates of the proposed location of the well of the surface, referenced to the state plane coordinate system for this state as maintained by the National Geodetic Survey in the National Oceanic and Atmospheric Administration; (C) the proposed depth of the well of the top of each objective formation and of total depth; Location at Surface 2408 FSL 1723 FEL S2 T10N R7E UM ASP Zone 4 NAD 27 Coordinates RKB Elevation 108.00' AMSL Northing: 5,940,792' Easting: 465,255' Pad Elevation 73.9 AMSL Location at Top of Productive Interval ("Kuparuk C" Sand) 4334 FSL 3868 FEL S2 T10N R7E UM Measured Depth, RKB: 7,713' ASP Zone 4 NAD 27 Coordinates Northing: 5,942,728' Easting: 463,118' Total Vertical Depth, RKB: 6,145' Total Vertical Depth, SS: 6,037' Location at Total Depth 3369 FSL 3192 FEL S35 T11N R7E UM ASP Zone 4 NAD 27 Coordinates Northing: 5,947,039" Easting: 463,810' Measured Depth, RKB: 12,082' Total Vertical Depth, RKB: 6,208' Total Vertical Depth, SS: 6,100' Please see Attachment 9: Surface Platt and (0) other information required by 20 AA C 25. 050(b); Requirements of 20 AAC 25.050(b) If a well is to be intentionally deviated, the application for a Permit to Drill (Form 10-401) must (1) include a plat, drown to a suitable scale, showing the path of the proposed wellbo re, including all adjacent wellbores within 200 feet of any portion of the proposed well; Please see Attachment 2: Directional Plan and (2) for all wells within 200 feet of the proposed wellbore (A) list the names of the operators of those wells, to the extent that those names are known or discoverable in public records, and show that each named operator has been furnished a copy of the application by certified mail, or (B) state that the applicant is the only affected owner. The Applicant is the only affected owner. SMU M-04 10-401 APD Page 3 of 10 Printed: 9-Apr-15 Brooks Range Petroleum 3. Blowout Prevention Equipment Information Requirements of 20 AAC 25.005(c)(3) An application for a Permit to Drill must be accompanied by each of the following items, except for on item already on file with the commission and identified in the application: (3) a diagram and description of the blowout prevention equipment (BOPE) as required by 20 AAC 25.035, 20 AAC 25.036, or 20 AAC 25.037, as applicable; Please see Attachment 7: BOP and Diverter Configuration 4. Drilling Hazards Information Requirements of 20 AAC 25.005 (c)(4) An application for a Permit to Drill must be accompanied by each of the following items, except for an item already on file with the commission and identified in the application: (4) information on drilling hazards, including (A) the maximum downhole pressure that may be encountered, criteria used to determine it, and maximum potential surface pressure based on a methane gradient, - The expected reservoir pressure in the Kuparuk C Sand is 0.6240 psi/ft, or 12.0 ppg EMW (equivalent mud weight). The maximum potential surface pressure (MPSP) based on the above maximum pressure gradient, a methane gradient (0.10), and the planned vertical depth of the Kuparuk C formation is: MPSP = (6,037 TVDss)(0.6240 - 0.10 psi/ft) = 3,163 psi (B) data on potential gas zones; The K-10 Campanian sands are known for potential gas kicks in this area. The intermediate section will be drilled with a minimum mud weight of 9.7 ppg prior to penetrating the K-10. and (C) data concerning potential causes of hole problems such as abnormally geo-pressured strata, lost circulation zones, and zones that have a propensity for differential sticking; Please see Attachment 5: Drilling Hazards Summary. 5. Procedure for Conducting Formation Integrity Tests Requirements of 20AAC 25.005 (c)(5) An application for a Permit to Drill must be accompanied by each of the following items, except for an item already on file with the commission and identified in the application: (5) a description of the procedure for conducting formation integrity tests, as required under 20 AAC 25.030(f); Please see Attachment 6: Formation Integrity and Leak off Test Procedure SMU M-04 10-401 APO Page 4 of 10 Printed: 9-Apr-15 Brooks Range Petroleum 6. Casing and Cementing Program Requirements of 20 AAC 25.005(c)(6) An application for a Permit to Drill must be accompanied by each of the following items, except for on item already on file with the commission and identified in the application: (6) a complete proposed casing and cementing program as required by 20 AAC 25.030, and a description of any slotted liner, pre -perforated liner, or screen to be installed, - Casing and Cementing Program See also Attachment 4: Cement Summary Csg/Tbg OD (in) Hole Size Weight (Iblft) Grade Connection Length (ft) Top MD/TVD Btm MD/TVD Cement Program (in) (ft) (ft) Insul 2 42" 91.5 A-53 Weld 80' Surface 110'/ 110' 260 sx ArcticCem (Approx) 754 TOTAL sx 9 5/8" 12 1/4" 40 L-80 BTC 2,532' Surface 2,606'/2,508' LEAD: 524 sx 10.7 ppg Permafrost L TAIL: 229 sx 15.8 ppg SwiftCem 67 TOTAL sx 7" 8 3/4" 26 L-80 BTC-M 7,269' Surface 7,343'/6,048' LEAD: 67 sx 13.0 ppg VariCem TOC: 6,843'/ 5,860' TVD 4 1/2" 6 1/8" 12.6 L-80 H521 4,889' 7,193'/5,997' 12,082'/6,208' Slotted Liner 7. Diverter System Information Requirements of 20 AAC 25.005(c)(7) An application for a Permit to Drill must be accompanied by each of the following items, except for an item already on file with the commission and identified in the application: (7) a diagram and description of the diverter system as required by 20 AAC 25.035, unless this requirement is waived by the commission under 20 AAC 25.035(h)(2); Please see Attachment 7: BOP Configuration. SMU M-04_ 10-401 APD Page 5 of 10 Printed: 9-Apr-15 Brooks Range Petroleum 8. Drilling Fluid Program Requirements of 20 AAC 25.005(c)(8) An application for a Permit to Drill must be accompanied by each of the following items, except for on item already on file with the commission and identified in the application: (8) a drilling fluid program, including a diagram and description of the drilling fluid system, as required by 20 AAC 25.033; Drilling fluid practices will be in accordance with appropriate regulations stated in 20 AAC 25.033. Drilling will be done with muds having the following properties over the listed intervals: Surface Hole Mud Program (Spud Mud) Spud to Base of Permafrost Base Permafrost to TD Parameter Initial Value Final Value Initial Value Final Value @ TD Density (ppg) 9.0 9.4 (9.4 9.6, Funnel Viscosity (sec) 220-300 200 — 300 200 — 250 150-200 Yield Point (cP) 45 — 60 50 — 70 50 — 70 45 — 60 PV (Ibs/100ft2) 20 — 30 20 — 45 20 — 45 20 — 30 pH 9.0-9.5 9.0-9.5 9.0-9.5 9.0-9.5 API Filtrate (cc) 8 —15 <10 <10 <10 Solids (%) t 9% Intermediate Hole Section (LSND) Parameter Initial Value @ TD Density (ppg) 9.7 10.7 1 Funnel Viscosity (sec) 35 — 45 35 — 45 Yield Point (Ibs/100ft') 22 — 28 22 — 28 Plastic Viscostiy (CP) 10 —15 10 — 15 Gels 10sec/ 10m in 8 —10/ <20 8 —10/ <20 Chlorides <800 <800 pH 9.5-10 9.5-10 API Fluid Loss (cc/30min) <10 <10 HTHP Fluid Loss (cc/30min) <10 <10 M BT <20 <20 Solids (ppb) <11 <18 SMU M-04 10-401 APD Page 6 of 10 Printed. 9-Apr-15 Brooks Range Petroleum Production Hole Section (FloThru) Parameter Value Density (ppg) 12.3 Funnel Viscosity (sec) 40 — 50 Yield Point (lbs/100 ft2) 20 — 30 Plastic Viscostiy (CP) 20 — 26 pH 9.0 — 9.5 API Fluid Loss (cc/30min) <10 HTHP Fluid loss (cc/30min) <6 LGS <10% 9. Abnormally Pressured Formation Information Requirements of 20 AAC 25.005 (c)(9) An application for a Permit to Drill must be accompanied by each of the following items, except for on item already on file with the commission and identified in the application: (9) for an exploratory or stratigraphic test well, a tabulation setting out the depths of predicted abnormally geo-pressured strata as required by 20 AAC 25.033(f); Not applicable: Application is not for an exploratory or stratigraphic test well. 10. Seismic Analysis Requirements of 20 AAC 25.005 (c)(10) An application for a Permit to Drill must be accompanied by each of the following items, except for an item already on file with the commission and identified in the application: (10) for an exploratory or stratigraphic test well, a seismic refraction or reflection analysis as required by 20 AAC 25.061(a); Not applicable: Application is not for an exploratory or stratigraphic test well. 11. Seabed Condition Analysis Requirements of 20 AAC 25.005 (c)(11) An application for a Permit to Drill must be accompanied by each of the following items, except for an item already on file with the commission and identified in the application: (11) for a well drilled from on offshore platform, mobile bottom -founded structure, jack -up rig, or floating drilling vessel, on analysis of seabed conditions as required by 20 AAC 25.061(b); Not applicable: Application is not for an offshore well. 12. Evidence of Bonding - Requirements of 20 AAC 25.005 (c)(12) An application fora Permit to Drill must be accompanied by each of the following items, except for on item already on file with the commission and identified in the application: (12) evidence showing that the requirements of 10 AAC 25.025 (Bonding)have been met; Evidence of bonding for Brooks Range Petroleum Corp. is on file with the Commission. SMU M-04 10-401 APD Page 7 of 10 Printed: 9-Apr-15 //N10 Brooks Range Petroleum 13. Proposed Drilling Program Requirements of 20AAC25.005 (c)(13) An application for a Permit to Drill must be accompanied by each of the following items, except for on item already on file with the commission and identified in the application: Please refer also to Attachment 1— Drilling Procedure 1. Rig up on slot "R". Set 20" (34" sleeve) install insulated conductor (See the TSA installation instructions) using "Watson" drill at a minimum depth of 80' below ground level. The RKB on the rig is anticipated to be 33' 1-1/2". Install an 8' diameter by 5' deep corrugated pipe cellar. 2. Install 20" SOW X 19.995" Slick -neck with 18.75" Diameter Bowl, FMC landing ring assembly. 3. MIRU Nabors 16-E. 4. Nipple up diverter riser and 21-1/4" x 2K Hydril MSP diverter system. Install diverter line. 5. Notify (48 hour notice) AOGCC of planned diverter test so that they can witness test. Function test diverter system and conduct diverter operation drills with each drilling crew. 6. Spud in and drill 12-1/4" hole directionally to total depth using a Gel based spud mud. Mud weight will unweighted at 8.8-9.1 ppg and will naturally weight up to —9.6+ by TD. 7. Run 9-5/8" 40 ppf L-80 BTC surface casing to TD. Run a TAM port collar at 500' as a contingency in case of losses during cementing operations. Run centralizers per cementing program. 8. Cement 9-5/8" casing to surface in one stage per cement program. The port collar will not be utilized unless cement returns do not reach surface during the primary cement job. Per 20 AAC 25.030 9. ND diverter and NU 11"x 5K FMC Gen 5 wellhead. Install 11" X 13-5/8" DSAF. 10. NU 13-5/8" x 5K BOP stack and 3-1/16" x 5K choke manifold. BOP configuration from top to bottom as follows: 13-5/8"x 5K Hydril GK Annular preventer 13-5/8"x 5K Pipe Rams 3-1/2" x 6" VBR's 13-5/8"x 5K Blind Shear Rams 13-5/8"x 5K Drilling spool with tea 3-1/16" outlets 13-5/8" x 5K Pipe Rams 2-7/8" x 5" VBR's Test all components to 25014000 psi. Annular preventer may be tested to 25012500 psi only. Install wear bushing. 11. RIH w/ 8.75" BHA. Test 9-5/8" casing to 3000 psi with mud for 30 min. Record test on a chart. 12. Drill out float equipment and cement in the rat hole. 13. Clean pits. Bring on new mud. 14. Displace wellbore to new 9.7 ppg mud for drilling the 8-3/4" intermediate hole. 15. Drill 20' of new formation (but not more than 50') below the old TD depth. 16. Perform a leak off test (LOT). Based on offset well information, expect a LOT in the range of 16.0 ppg. A minimum LOT value (-12.7 ppg) that is at least 2 ppg over MW proposed at TD of 8-3/4" hole will be needed to accommodate mud hydrostatic + ECD effects.`- SMU M-04 10-401 APD Page 8 of 10 Printed: 9-Apr-15 Brooks Range Petroleum 17. Drill 8-3/4" hole per directional program to approximately 6766' MD (6010' TVD). Mud weight will start at 9.7 ppg and increase to 10.7 ppg 500' MD prior to the HRZ Shale, The K-1 marker in the Kalubik will be used to pick the intermediate casing point. 18. BOP tests are required every 14 days Notify the AOGCC inspector at least 48 hours in advance of the start of any BOPE test. 19. Run and cement 7" 26 ppf L-80 BTC-M intermediate casing to a minimum of 500' above the Tarn T-4 formation top at 7343' MD/ 6048' TVD. 20. Freeze -protect the 7"x 9-5/8" annulus by down squeezing diesel to the outer annulus down to -1900' MD (approx. 500' MD below base Permafrost), 21. Clean pits and lines. 22. RIH with 6-1/8" BHA. Test casing to 4000 psi for 30 min. Drill our shoe track and displace mud to new drill -in fluid @ 12.3 ppg. Have extra kill weig`F fluid on location at all times when drilling the production interval. Drill out the shoe track and 20' of new formation. Perform a formation integrity test (FIT) to 15.5 pp E W. 23. Drill the 6-1/8" hole through the Kuparuk "C" target interval. Provide sufficient rat hole for LWD logging and a liner shoe track to a final TD of 12,082' MD (6208' TVD). Extreme care will be utilized when drilling near the Kuparuk A sands. 24. Circulate the hole clean (a minimum of three bottoms up). -/ 25. POH. LIDBHA. j� 26. Rig up and run approximately 4,889' of 4-1/2" 12.6# L-80 H521 Slotted Liner with liner hanger and liner top P( packer. 27. Set and test ZXP liner top packer per program. 28. Displace well to clean kill weight brine. POH. 29. Run 4-1/2" tubing completion per detailed completion procedure. Detailed completion procedure to be submitted toAOGCC. S".'9'-) Veepf.j' 30. ND BOPE and NU Xmas tree. Test tree to 5,000 psi. li 31. Freeze protect the tubing and IA to -1900' MD. Allow to U-tube. Ste" 32. Install a BPV in the tubing hanger. 33. RD Nabors 16-E and move off. 34. RU well testing equipment. 35. Pull BPV with a lubricator. RU E-line, log onto depth and perforate. 36. Flow test well as per well testing procedure. 37. Pump kill -weight fluid and freeze protect the well. Set necessary mechanical plugs to provide required barriers for operationally shutting down the well with all downhole production equipment in place. A Sundry Notice (Form 403) will be filed with AOGCC describing barriers. 38. Install BPV in tubing hanger profile. Install VR plugs in all wellhead valves. 39. RDMO testing equipment. SMU M-04 10-401 APD Page 9 of 10 Panted., 9-Apr-15 Brooks Range Petroleum 14. Discussion of Mud and Cuttings Disposal and Annular Disposal Requirements of 20 AAC 25.005 (c)(14) An application for a Permit to Drill must be accompanied by each of the following items, except for on item already on file with the commission and identified in the application: (14) a general description of how the operator plans to dispose of drilling mud and cuttings and a statement of whether the operator intends to request authorization under 20AAC 25.080 for on annular disposal operation in the well.; Waste fluids generated during the drilling process will be disposed of by hauling the fluids to the Prudhoe Bay or ConocoPhillips Grind and Inject Facility located at 1B Pad. All cuttings generated will be hauled to the Prudhoe Bay or ConocoPhillips Grind and Inject Facility located at 1B Pad for temporary storage and eventual processing for injection down an approved disposal well. 15. Attachments Attachment 1 Drilling Procedure Attachment 2 Directional Plan Attachment 3 Drilling Fluid Program Attachment 4 Drilling Hazards Summary Attachment 5 Formation Integrity And Leak Off Test Procedure Attachment 6 BOP and Diverter Configuration Attachment 7 Wellhead & Tree Configuration Attachment 8 Surface Platt SMU M-04 10-401 APO Page 10 of 10 Printed: 9-Apr-15 Mustang Development Brooks Range Petroleum AOGCC 10=401 Attachments //Nldy� Brooks Range Petroleum Brooks Range Petroleum Corp. - AOGCC 10-401 Attachments Brooks Range Petroleum Argo Drilling Program SMU M-04 Drilling and Completion Well Plan SMU M-04 "Argo" Slim Hole Producer Mustang Development Drilling and Evaluation Program April 2015 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Argo Drilling Program SMU M-04 Table of Contents Introduction............................................................................................................................................... 3 ProjectOutline: ....................................................................................................................................... 4 SMUMustang Well Testing: .................................................................................................................... 4 WellInformation: .................................................................................................................................... 5 GeneralWell Plan: SMU M-04...............................................................................................................9 ShortScope: .......................................................................................................................................... 10 DrillingRisks...........................................................................................................................................13 DrillingRisk Assessment........................................................................................................................ 14 LOT/FIT...................................................................................................................................................16 PROCEDURE.........................................................................................................................................16 MASP & Casing Design Verification Calculations.............................................................................18 Maximum Anticipated Surface Pressure(MASP):................................................................................. 19 Casing Design Verification: .................................................................................................................... 20 Casing Design Factor Calculations: ........................................................................................................ 21 Pre -operational Procedures.................................................................................................................. 24 Pre -rig operations: ................................................................................................................................ 25 DetailedOperational.............................................................................................................................. 27 DrillingProcedures.................................................................................................................................27 Drill12-1/4" Surface Hole: .................................................................................................................... 28 Run9-5/8" Surface Casing: ................................................................................................................... 30 Cement9-5/8" Surface Casing: ............................................................................................................. 33 Drill 8-3/4" Intermediate Hole: ............................................................................................................. 35 8-3/4" Intermediate Hole Section Notes and Lessons Learned: ............................................................ 37 Run7" Intermediate Casing: ................................................................................................................. 38 Cement 7" Intermediate Casing: ........................................................................................................... 41 Drill6-1/8" Production Hole: ................................................................................................................ 43 Run4-1/2" Slotted Liner: ...................................................................................................................... 44 WellOverview: ...................................................................................................................................... 46 2 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Argo Drilling Program SMU M-04 Introduction 150409 SMU M-04 Well Plan Rev 1 Argo Drilling Program Brooks Range Petroleum SMU M-04 Project Outline: The Argo Horizontal Producer well "SMU M-04" will be drilled from the BRPC Mustang development pad to the west of the 2L and 2M pads of Kuparuk field on the North Slope. The Argo well will consist of a 20" x 34" insulated conductor pipe, 9-5/8" surface casing, 7" intermediate casing and a 4-1/2" slotted production liner. The production interval will be drilled and evaluated with LWD. The main objective of the well is to drill and complete a—5,000' horizontal producer in the Kuparuk "C" sands. Following completion of this well, BRPC intends to test flow the well for as yet undetermined amount of time to clean up the well, then perform a —126 hour test to acquire data and to evaluate the reservoir properties. Post well test, this oil production will be re -injected into the Argo "SMU M-02" well or sent to BP for disposal. The well will then be secured and suspended per AOGCC regulations for use as a horizontal producer once the Mustang production facility has been commissioned. SMU Mustang Well Testing: Winter 2014/2015 Three SMU Mustang wells are planned to be drilled this winter (2014/2015). Well flow tests are being planned and AFE'd for the first two wells (one slant well and one horizontal producer). The two well tests were designed to achieve the following objectives: • To determine the reservoir and wellbore properties; determine flow capacity (kh), skin and effective producing length (Leff). • Limit fluid production from slant well test to minimize storage requirements. • Keep bottom hole flowing pressure above bubble point prior to maximum -rate test. • Short maximum -rate test after final build up. The second well test is Argo HP (SMU M-04). After completion as a Horizontal Producer (4-1/2" slotted liner), Argo will be flow tested for approximately one hundred twenty six (126) hours. "Success" would be rates sustained in excess of 1500 BOPD. Flow test fluids will be injected into the Lipizzan (SMU M-02 well) for storage or BP for disposal. The horizontal flow test design should be revised, if needed, based on the results of the slant well. Total test time is 126 hours excluding well clean-up period: 1. Clean-up flow as needed 2. Flow 6 hours at approximately 300 BOPD 3. Shut in well for 10 hours 4. Flow well for 36 hours at approximately 300 BOPD 5. Final shut-in for 72 hours 6. Maximum flow rate test for 2 hours 7. Kill well and freeze protect. 8. Secure well and suspend 9. RDMO 0 150409 SMU M-04 Well Plan Rev 1 P FJD Argo Drilling Program Brooks Range Petroleum SMU M-04 Argo Horizontal Producer - Mustang Production Pad Slot "E" Proposed Diagram SM -n 0 9-5/8" Tam Collar: 500' MD 1499' TVD 12-1/4" OH: 2,606' MD/ 2,608' TVD Gas Lift Mandrels Where Required 3.1/2", 9.3 ppf, L-80, TCII TOL: 7,193' MDI 5,998' TVD 8.3/4" OH: 7,343' MD/6,048' TVD 6.1/8" OH: 12,082' MD/ 6,208' TVD 20" x 34" Conductor. 110' MD / 110' TVD B/ Permafrost: 1,400' MD/ 1,396' TVD SOV: 1,900' MD 9-6/8", 40#, L80, BTC: 2,606' MD/ 2,508' TVD PP3 SIT 11.1 - Ic.70PS Memory PT Gauge: 7,022' MD Memory PT Gauge: 7,054' MD ROC PT Gauge: 7,086' MD X Nipple: 7,103' MD 3-1/2" X7" Packer. 7,126' MD XNipple: 7,14T MD Mirage Plug/ Auto Fill: 7,188' MD WLEG: 7,196' MD BTC-M: 7,343' MD/6,048' TVD 'Y O-r �-, � 4-1/2" SL, 12.6#, L80, H621: 12,082' MD/ 6,208' TVD Brooks Range Petroleum Well Information: Argo Drilling Program SMU M-04 Operator Brooks Range Petroleum Corporation Well Name SMU M-04 Bottom Hole Location Argo Slot E Well Type Horizontal Producer AOGCC Permit Number TBD , jS-0(0 API Number Number TBD AFE Number TBD Primary target Kuparuk C Geodetic System US State Plane 1924 Geodetic Datum NAD 1927 (NADCOM CONUS) Map Zone Alaska Zone 04 Surface Location 2408 FSL 1723 FEL S2 T10N R7E UM X- 4655255, Y- 5940792 Bottom hole location 857 FSL 1344 FEL S11 T10N VE UM X — 463810 Y- 5947039 Area Southern Miluveach Unit Total Depth: 12,082' MD / 6,208'TVD Rig Nabors 16-E Rotary Table to Ground Level 33' 1-1/2" RKB 108' Bottom hole static temperature 1400 F (6200' TVD) 150409 SMU M-04 Well Plan Rev 1 7 N O a aj rn C Ln Y O W .j N�. 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L k E .1 t Lob n ee R'61 u��b t 7 i b B 4 b i� s ,C b m=b CS l�„e E 0 ti b� C b: F? e i : ziz n z z z z k z z,z 8 z z tds z e z z z zcz ;��:1 z!z zg: z z fis�� z z z z'z S`�c.k.c z°z 2 z z z z■ w4 f r M1 1 n Z a a aJW W tr rJ 4 oJLU FN zmz LLJ �C?< 0<La o N O a u JV1 00 LL3RL., vz cQiFFul W ��0 LLd z a n 1 c 1 � � J U p 1, U J (A C U Q F a 0- Q C3 Si LLI N Ln O m LAJ W a 1 1 1 1 �� Y� N►�qa � �d t � �5 z ° yN s ffpt� 5 �aa! ✓¢Mt yo1' 1 1 1 J J' 2 rl- Brooks Range Petroleum Argo Drilling Program SMU M-04 WELL LATITUDE(N) LONGITUDE(W) NORTHING EASTING SECTION LINE OFFSET PAD ELEVATION sa A N 070' 14' 57,101" W 150' 16' 52171- 5940772.89 465198.38 2.389' 1.780' 73.6 8 N 070' 14' 57.147' W 150' 16' 51.161' 5940777.52 465212.52 2,393' 1,766' 73-7 C N C70' 14' 57.194' W 150' 16' 51,346" 594078215 465226,79 2.398' 1,752' 73.8 D N 070' 14' 57.24C" W 150' 16' 50-932" 5940786.78 465241-05 2,403' 1.738, 73.9 • E N 070' 14' 57.291- W 150. 16' 50.514" 5940791.90 465255.45 2,408' 1,723' 73.9 F N 07C' 14' 57.332" W 150' 16' 50.104" 594-0196.05 465269.58 2,412' 1.709, 74.0 G N C70' 14' 57.379" W 150' 16' 49 690" 5940800.69 465283.85 2.417' 1.695' 74.1 H N C7C' 14' 57.425" W 150' 16' 49.275' 5940805.32 465298.11 2,422' 1,68'' 74-2 ++ I N C70' 14' 57.471' W 150' 16' 4-8.853" 5940809.93 4-65312.31 1 2,426' %r357' 74.7 N C7C' 14' 57,517" W 150' 16' 48-447" 5940814.59 465326.64 2,431' ',652' 74.3 K N C7C' 14' 57.564" W 150' 16' 48.033" 59408'9,23 465340.90 2,436' 1,638' 74.4 L N CIC' 14' 57.610' W 150' 16' 4-1.6'8" 5940823.86 46.9355,17 2,440' 4,624' 74.5 as M N 070' 14' 57,655" W 150' 16' 47,213" b940B28.42 465369.14 2,445' 1,610, 74.5 N N C70' 14' 57.702" W 150' 16' +6.790" 5940833.'3 465383.7012.450' 1,595' 74.6 0 N C/O* 14' 57.749" 'W 150' 16' 46.316" 5940837.77 465397.96 2,454' 1,581' 74.7 p N 070' 14' 57,795" W 150' 16' 45 961" 594C842.40 4455412.23 2,459' 1,567' 14.a a N 070' 14' 57.841" W 150' 16' 45.547" 5940847,04 465426.49 2,464' 1,553' 74.8 R N 070' 14' 5t88J" 'W 150' 16' 45.133" 5940851.67 465440 76 2,468' ".538' 74.9 LL N C70' 14' 57.933" W 150' 16' 44 719' 5940855.31 465455.02 2,473' ',524' 15.0 S N 07C' 14' S6.354" W 150' 16' 51.446" 5940696.80 465222.98 2,3'3' 1,756' 73.8 T N 070' 14' 56.4-00" W 150' 16' 51.032" 5940701,44 465237 24 2.317' 1,741- 73.9 U N 07C' 14' 56.446" W 150' 16' 50.617" 5940706.07 4-65251.51 2.322' 1.727' 74.0 V N C70' 14' 56,493" W 150' 16' 50 203" 5940710.71 465265.77 2.327' 1,713' 74.1 W N 070' 14' 56.539" W 150' 16' 49.789" 59407'5.34 465280 04 2,331' 1,699' 74.' x N 070' 14' 56.585" W 150' 16' 49-375" 5940719.98 465794.3C, 2,336' 1,694' 74.2 Y N 070' 14' 56.631" W 150' 16' 48 960" 5940724.61 465308.571 2.34V 1.670' 74.3 Z N 070' 14' 56.678" W 150' 16' 48.546" 5940729,25 465322,83 2,346' 1,656' 74.4 AA N 070' 14' 56.724" W 150' 16' 4.8.132' 5940733.88 465337,C9 2,350' 1,542' 74.4 99 N 070' 14' 56.770" W 150' 16' 47 718" 5940738.52 465351.36 2,355' 1,627' 74.5 cc N 070' 14' 56.816' W 150' 16' 47-303" 5940743.15 465365.62 2,360' 1,613' 74.6 DD N 070' 14' 56.663" 'W 150' 16' 4-5M " 5940747.79 465379,89 2,364' 1,599' 747 EE N 070' 14' 56.909" W 150' 16' 46 475" 5940752.42 465394.15 2,369' 585' 74.7 FF N 070' 14' 56,955" 'W 150' 16' 46061" 5940757.06 465408 42 2,374' %570' 748 GG N 070' 14' 57.001" 'W 150' 16' 45.646" 5940761.69 465422.68 2.378" `,556' 74.9 HH N 070' 14' 57.C48" W 150' 16' 45.232" 5940166.33 465436.95 2,383' 1,542' 15.0 II N C70' 14' 57.C94" W 150' 16' 44 8"-8" 5940770.96 4-65451.21 1 2,388' 1,528' 75.0 JJ N 070' 14' 57.140" 1 W 150' 16' 44.404" 15940775,60 465465.47 2,393' 1,513' 75,1 KK N C7C' 14' S7J86" W 150' 16' 43.989" b940180.23 465479.74 2,39J' 499' 75.2 ** Indicates Asbuilt Well Conductor Coordinates Scale Faczor - 0.999901 i66 PROTRACTED SECTION 2, T. 10 N., R. 7 E., UMIAT MERIDIAN 8 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Argo Drilling Program SMU M-04 General Well Plan: SMU M=04 7 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Short Scope: Argo Drilling Program SMU M-04 1. Rig up on slot "R". Set 20" (34" sleeve) install insulated conductor (See the TSA installation instructions) using "Watson" drill at a minimum depth of 80' below ground level. The RKB on the rig is anticipated to be 33' 1-1/2". Install an 8' diameter by 5' deep corrugated pipe cellar. 2. Install 20" SOW X 19.995" Slick -neck with 18.75" Diameter Bowl, FMC landing ring assembly. 3. MIRU Nabors 16-E. 4. Nipple up diverter riser and 21-1/4" x 2K Hydril MSP diverter system. Install diverter line. 5. Notify (48 hour notice) AOGCC of planned diverter test so that they can witness test. Function test diverter system and conduct diverter operation drills with each drilling crew. 6. Spud in and drill 12-1/4" hole directionally to 2,606' MD (2,508' TVD) using a Gel based spud mud. The well will be kicked off at 500', built to 30.94° by TD. The base of the permafrost is estimated to be at—1,400' MD (1,396' TVD). 7. Ensure X-0 with FOSV is on the floor. 8. Run 9-5/8" 40# L-80 BTC surface casing to TD. Run a TAM port collar at 500' as a contingency in case of losses during cementing operations. Run centralizers per cementing program. 9. Cement 9-5/8" casing to surface in one stage per cement program. The port collar will not be utilized unless cement returns do not reach surface during the primary cement job. Per 20 AAC 25.030 Ao , Cc . � C`,."-iL.... 130 10. ND diverter and NU 11"x 5K FMC Gen 5 wellhead. Install 11" X 13-5/8" DSAF. 11. NU 13-5/8" x 5K BOP stack and 3-1/16" x 5K choke manifold. BOP configuration from top to bottom as follows: - 13-5/8"x 5K Hydril GK Annular preventer - 13-5/8"x 5K Pipe Rams - 3-1/2" x 6" VBR's - 13-5/8"x 5K Blind Shear Rams - 13-5/8"x 5K Drilling spool with 2ea 3-1/16" outlets - 13-5/8" x 5K Pipe Rams-2-7/8" x 5" —VBR's Test all components to 25014000 psi. Annular preventer may be tested to 25012500 psi only. Install wear bushing. 12. RIH with 8-3/4" BHA, Test 9-5/8" casing to 3000 psi with 9.6 ppg mud for 30 min. Record test on a chart. ---- 13. Drill out float equipment and cement in the rat hole. 14. Clean pits. Bring on new mud. 15. Displace wellbore to new 9.7 ppg mud for drilling the 12.25" intermediate hole. 16. Drill 20' of new formation (but not more than 50') below the old TD depth. 17. Perform a leak off test (LOT). Based on offset well information, expect a LOT in the range of 16.0 ppg. A minimum LOT value (-12.7 ppg) that is at least 2 ppg over MW proposed at TD of 12.25" hole will be needed to accommodate mud hydrostatic + ECD effects. 18. Drill 8-3/4" hole per directional program to approximately 7,343' MD/ 6,048' TVD. Mud weight will start at 9.7 ppg and increase to 10.7 ppg 500' prior to penetrating the HRZ. The K-1 marker m 150409 SMU M-04 Well Plan Rev 1 Argo Drilling Program Brooks Range Petroleum SMU M-04 in the Kalubik will be used to adjust the intermediate casing point. Set 10' TVD above the Kuparuk C. TD is -10 ft TVD above the Kuparuk "C" target estimated at 6,145' TVD. 19. BOP tests are required every 14 days. Notify the AOGCC inspector at least 48 hours in advance of the start of any BOPE test. C. (e- 20. C/O and Test 7" Rams. 21. Run and cement 7" 26# L-80 BTC-M intermediate casing to a minimum of 500' above the Kuparuk Sand. Ensure XO with FOSV is on the floor. 22. Freeze -protect the 9-5/8" x 7" annulus by down squeezing diesel to the outer annulus down to —1900' MD (approx. 500' MD below base Permafrost). 23. Clean pits and lines. 24. RIH with 6-1/8" BHA. Test casing to 4000 psi for 30 min. Displace mud to new drill -in fluid @ 12.3 ppg- Have extra kill weight fluid on location at all times when drilling the production interval. 25. Drill out the shoe track and 20' of new formation. Perform a formation integrity test (FIT) to 15.5 ppg EMW. 26. Drill the 6-1/8" hole through the Kuparuk "C" target interval to a final TD of 12,082' MD/ 6,208' TVD. Extreme care will be utilized when drilling near the Kuparuk A sands. 27. Circulate the hole until the shakers run clean per HXR. 28. BROOK LID BHA. 29. Rig up and run approximately 5000' of 4-1/2" 11.6 # L-80 H521 liner with SLZXP liner hanger and liner top packer. 30. Set 4-1/2" Liner hanger and test packer. 31. Run 3-1/2" 9.3# L-80 TCII tubing per detailed completion procedure. Detailed completion procedure to be submitted to AOGCC. 32. ND BOPE and NU Xmas tree. Test tree to 5,000 psi. 33. Freeze protect the tubing and IA to —1900' MD.. Allow to U-tube. 34. Set the 7" x 3.5" production packer and test both tubing and IA to 1500 psi for 30 minutes. Record tests on a chart. 35. Install a BPV in the tubing hanger, consider setting plug in lower X-Nipple. 36. RD Nabors 16-E and move off. 37. RU well testing equipment. 38. Pull BPV with a lubricator. 39. Flow test well as per well testing procedure. 40. Pump kill -weight fluid and freeze protect the well. Set necessary mechanical plugs to provide required barriers for operationally shutting down the well with all downhole production 11 150409 SMU M-04 Well Plan Rev 1 Argo Drilling Program Brooks Range Petroleum SMU M-04 equipment in place. A Sundry Notice (Form 403) will be filed with AOGCC describing barriers. 41. Set plugs in nipple profiles install BPV in tubing hanger profile. Install VR plugs in all wellhead valves. 42. RDMOtesting equipment. 12 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Argo Drilling Program SMU M-04 Drilling Risks 13 150409 SMU M-04 Well Plan Rev 1 Argo Drilling Program Brooks Range Petroleum SMU M-04 Drilling Risk Assessment Increased Pore Pressure in Kuparuk (High) The closest offset wells Mustang #1 (M-01) and North Tarn 1A had lost circulation and a kick. It is believed that high mud weight of 12.5-12.9 ppg used to drill the production hole through the Kuparuk "C" led to fracture and losses in the Kuparuk "A". Subsequently, a kick was taken and circulated out with 11.8 ppg mud weight. The formation evaluation data from the N Tarn-1A well shows that the reservoir pressure of Kuparuk "C" is -12.0 ppg and the Kuparuk "A" has 10.4 ppg pressure resulting from the injection activities on neighboring pads and depletion due to production. Mud weight planned for the production section is 12.3 ppg and should provide a sufficient overbalance across the producing intervals. Mud loggers will monitor pit levels, background gas and other indicators of increasing pore pressure. Flow checks will be performed on connections and the well will be monitored during trips to ensure proper fill up and to minimize swabbing. Lost Returns (High) A risk of losses will be present during drilling SMU M-04. As seen in the SMU M-02 well, the intermediate section has proven to be fractured in some areas. All efforts should be made to reduce ECD's as much as possible. Do not exceed 12.3 ppg ECD while drilling the intermediate hole section. The Kuparuk formation is known to be highly fractured in places. The mud density and rheology will be maintained according to the mud program. The PWD tool will be used to monitor real-time ECDs close to the bit and to help identify losses at the earlier stages. Pit levels should be monitored at all times and tripping speeds will be controlled to reduce surge & swab values. A contingency lost circulation plan (LCM decision tree) will be utilized to control losses. Gas Hydrates ("'lediun- ) Experience in Tarn area shows that this area has hydrates. The mitigation is to drill the permafrost section quickly and get surface casing set without delays. The section will need to be drilled with MW of 9.3 ppg+ to overbalance the gas sands. There is commonly a thin tarry sand at the 'K-10' level, about 2590' TVD; it is equivalent to the Tabasco sands but being thin (to non-existent in places) and tarry, it has not shown commercial potential in this area (yet). Minimum mud weight pre- K-10 sands is 9.8 ppg. In addition, pre -treating mud with Lecithin and Screen Kleen, known to prevent gas hydrate destabilization. Lecithin and Screen Kleen will be used in the surface mud system. Shale Instability ( Known instability issues in this area are associated with drilling the HRZ shales. Mitigation includes use of "shale inhibitors" (Resinex, Soltex) to coat potentially unstable zones and help maintain a low fluid loss. Minimizing directional changes through the shales and increasing mud density at the first sign of shale instability. According to the HRZ shale stability study and based on the hole inclination and the azimuth, the mud weight required for drilling the HRZ shales in the Argo intermediate hole should be in a range of 10.4 - 10.7 ppg. 14 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Hole Cleaning (Medium) Argo Drilling Program SMU M-04 In the surface interval, borehole cleaning issues may arise while drilling through the permafrost due to the presence of loose gravel and boulders. A few mitigation measures can be used: drill as fast as practical, do not leave the hole open for a long time, keep the mud cold and viscous. In the intermediate interval maintain fast drilling, practice short trips every 24 hours or 1000'MD, whichever comes first, minimize static times and run the casing as soon as practical after the borehole is drilled. Plotting torque and drag daily will indicate problematic trends. Record torque and pick-up, rotating, and slack off weights on every connection. Stuck Pipe due to Borehole Packoff ( Borehole packoff can occur due to conglomerate drilling and/or improper hole cleaning. Monitor cuttings loading in the annulus and control drill and/or circulate out to clean hole and lower ECD. The use of a PWD tool will help in identifying potential hole cleaning issues in real time. Stuck Pipe due to Differential Sticking ( Differential sticking occurs when BHA is across permeable sands. Pipe movement (reciprocation and/or rotation) at all times helps to prevent sticking. Stabilizer placement should be optimized. The risk of differential sticking in the Argo well exists; due to the section requirement to drill with—10.4-10.6 ppg mud, which gives overbalance across normally pressured permeable zones. Bit Balling ( Jediurr.) Bit balling has occurred in the area. In the Argo well, the problem should be mitigated with use of Nut plug and detergent sweeps which are sometimes effective in reducing clay balling effect. The addition of SAPP down the drill pipe on connections can also help alleviate this problem. Well Proximity Risks ( The closest wellbore to the Argo (M-02) well is Mustang #1 (M-01) and North Tarn #1A which is located approximately 180 feet away at surface. Directional anti -collision simulation indicates there is no anticipated interference expected between wellbores. 15 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum LOT/FIT Argo Drilling Program SMU M-03 PROCEDURE 16 150409 SMU M-04 Well Plan Rev 1 Argo Drilling Program Brooks Range Petroleum SMU M-04 SMU M-02 LOT/FIT Procedure 1. Drill out the shoe track and clean out any rat hole from the previous hole section below the shoe. From this depth, drill an additional 20 ft (minimum) to 50 ft (maximum) of new hole. 2. Circulate the wellbore clean and ensure MW in = MW out. Record this value. Line up one mud pump on the kill line. Isolate the other pump(s). 3. Turn on the pump to flood the kill line and to ensure the hole is full and that no air is present in the circulating system. 4. While pumping, ensure that the pump pressure gauge and the gauge on the chart recorder are reading the same pressure. 5. Shut down the pump, position a tool joint at the rig floor and close the upper pipe rams. 6. Bring the mud pump on line slowly at % - %: bbl per minute and watch for pressure to start increasing. CAUTIOUSLY look down the hole to verify no fluid is leaking past the closed pipe rams. Record the pressure from the chart recorder vs strokes pumped every 2 or 3 strokes pumped. The pressure should increase in a linear fashion vs strokes (Volume) pumped. 7. To perform a LOT (Leak -off Test), continue pumping and recording pressure vs strokes until the pressure deviates from a straight line trend. Obtain one or two additional readings to confirm this deviation from linearity. 8. Shut down the pump and continue to record pressure vs time, initially every 30 seconds for 2 minutes and then every minute for an additional 8 minutes. 9. Plot the points for the pressure build up vs volume pumped on one chart and the pressure drop vs time on a second chart. 10. By looking at the chart of pressure vs volume pumped, the leak -off pressure is the point at which the curve deviates from a straight line trend. 11. Use the formula: Leak off (MW equiv) = MW + LO Pressure/(Shoe TVDx.052) 12. The FIT follows the same operational steps as previously described, except that the pressure is increased to a pre -determined value previously calculated, where the plot of pressure vs volume pumped does not deviate from a straight line. Using the same formula, the FIT value is obtained. If however, deviation from a straight line does occur, do not keep pumping. The leak off pressure has been reached and additional pumping may cause the formation to break down. 13. The final step is to bleed off the pressure from the test and measure the volume of fluid returned to a small pit such as the trip tank or small pill pit. Depending on well design and depth, this volume bled back could be small — maybe no more than 1 bbl. 17 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Argo Drilling Program SMU M-04 MA P Casing Design Verification Calculations 18 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Brooks Range Petroleum Corporation Maximum Anticipated Pressure Calculations Argo SMU M-04 Maximum Anticipated Surface Pressure (MASP): Argo Drilling Program SMU M-04 I C��� Ce 12.25" Hole Section Tv - This hole section will be drilled with a diverter only, no BOPE. While MASP will equal the formation pore pressure at the surface casing shoe depth of 2,400' TVDss less a gas gradient to the surface, it cannot be shut in, only diverted. Offset well information indicates that the pore pressure at 2,400' TVDss will be a maximum of 9.5 ppg (0.494 psi/ft). Calculation for MASP (12.25" hole) _ (2,400') x (0.494-0.10) = 946 psi. 8.75" Hole Section The MASP for 8.75" hole section will be the formation pore pressure (less a full gas column to the surface) at 7,343' MD/ 5,940' TVDss Offset well information indicates that pore pressure at 5,940' TVDss will be a maximum of 10.4 ppg (0.541 psi/ft). Calculation for MASP (8.75" hole) _ (5,940') x (0.541-0.10) = 2,618 psi. 6.125" Hole Section The MASP for the 6.125" hole section will be the formation pore pressure (less a full gas column to the surface) at 12,082' MD/ 6,100' TVDss. Offset well information indicates that pore pressure at 6,100' TVD will be a maximum of 12 ppg (0.624 psi/ft). Calculation for MASP (6.125" hole) _ (6,100') x (0.624 - 0.10 =�3,1�96psi--' With MASP in the 6.125" open hole section calculated to be 3,196 psi, the 5,000 psi BOPE system to be used will be adequate. Casing Design Verification: Planned Casing program: Brooks Range Petroleum Argo Drilling Program SMU M-04 9.625" 7" Surface Casing Intermediate Casing Depth (MD) 2,606' 7,343' Depth (TVDss) 2,400' 5,940' Hole size 12.25 8.75 Weight (ppf) 40 26 Grade L-80 L-80 Connection BTC BTC-M Nominal ID (in) 8.75 6.276 API Casing Design Factors Design factors are essentially "safety factors" that allow the design of safe, reliable casing strings. Each operator may have his own set of design factors based on his experience and the condition of the pipe. Here we use operator's recommended design factors. Design Factors: Tensile Joint Strength: Collapse (from external pressure): Burst (from internal pressure): Nt = 1.8 SF Nc= 1.125 SF Ni=1.25SF The pore pressures and fracture gradients used here are those derived from studies of offsetting well North Tarn 1, KRU 2L-03 and 2M-36. Brooks Range Petroleum Casing Design Factor Calculations: Burst Requirements Argo Drilling Program SMU M-04 Use maximum anticipated surface pressures (MASP) for each casing string. For each casing string MASP is the formation pressure at the next casing point less a gas column to surface. 9.625", 40#, L-80, BTC Surface Casing: MASP at 8.75" hole section TVDss of 5,940': MASP = (5,940') x ((9.5 ppg x 0.052)-0.10 psi/ft) = 946 psi (burst stress) DFB ,St = burst strength / burst stress = 5,750 psi / 946 psi = 2.23 vs minimum SF of 1.25. 7", 26#, L-80, BTC-M Intermediate Casing: MASP at 6.125" hole section TVDss of 6,100': MASP = (6,100') ((10.4 ppg x 0.052)-0.10psi/ft) = 2,618 psi (burst stress) DFBurst = burst strength / burst stress = 7,250 psi / 2,618 psi = 2.31 vs minimum SF of 1.25. Argo Drilling Program Brooks Range Petroleum SMU M-04 Collapse Requirements Use an external pressure consisting of the formation pore pressure at the casing shoe and an internal pressure of a gas column to surface. 9.625", 40#, L-80, BTC Surface Casing: External pore pressure = 9.5 x 0.052 x 2,400' = 1,186 psi Internal pressure w/gas only = 0.10 x 2,400' = 240 psi Collapse stress = 1,186 psi - 240 psi = 946 psi. DFcoilapse = collapse rating / collapse stress = 3,090 / 946 = 3.27 vs minimum SF of 1.125. 7", 26#, L-80, BTC-M Intermediate Casing: External pore pressure Internal pressure w/gas only = 10.4 x 0.052 x 5,940'= 3,212 psi = 0.10 x 5,940' = 594 psi Collapse stress = 3,212 psi — 594 psi = 2,618 psi DFcoiiapse = collapse rating/collapse stress = 5,410 psi/ 2,618 psi = 2.07 vs minimum SF of 1.125. Brooks Range Petroleum Axial Requirements 9.625", 40#, L-80, BTC Surface Casing: Weight in air = 2,606' x 40 Ib/ft Pipe weight in mud = Pipe wt (in air) x Buoyancy Factor (BF) BF for 9.6 ppg mud = (65.5-9.6)/ 65.5 Pipe weight in mud = 104,240 lbs x 0.8534 = 104,240 lbs. = 0.8534 = 88,962 lbs. Argo Drilling Program SMU M-04 DFAx;ai = body tensile strength / buoyed wt. = 916,000 lbs. / 88,962 lbs. = 10.30 vs minimum SF of 1.8. 7", 26#, L-80, BTC-M Intermediate Casing: Weight in air = 7,343' x 26 Ib/ft = 190,918 lbs. Pipe weight in mud = Pipe wt. (in air) x Buoyancy Factor (BF) BF for 10.7 ppg mud = (65.5-10.7) / 65.5 = 0.8366"� Pipe weight in fluid = 190,918 Ibs. x 0.8366 = 159,730 lbs. DFAx;ai = joint tensile strength / buoyed wt = 604,000 Ibs. / 159,730 Ibs. = 3.78 vs minimum SF of 1.8. Brooks Range Petroleum Axial Requirements Weight in air = 2,606'\� 40 Ib/ft Argo Drilling Program SMU M-04 / Ia , I--( c lbs. Pipe weight in mud = Pipe t (in air) x Buoyancy Factor/(BF)BF for 9.6 ppg mud = (65.5-9. / 65.5 0.8534 Pipe weight in mud = 0.494 Ibs 0.8534 88,962 lbs.DFAxial =body tensile strength/ bu edwt.=916,000Ibs. = 10.30 vs minimum SF of 1.8. Weight in air = 7,343' x 26 Ib/ft Pipe weight in mud = Pipe wt. (in air) x Bu yancy\Ibs. BF for 10.7 ppg mud = (65.5-10.7) / 65.5 Pipe weight in fluid = 190,918 lbs. x 0. 66 DFAxial = joint tensile strength / buo ed wt = 604, = 190,918 lbs. = 0.83 = 159,730 lbs. ,730 Ibs. = 3.78 vs minimum SF of 1.8. a 23 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Argo Drilling Program SMU M-04 remoperational Procedures 24 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Argo Drilling Program SMU M-04 Pre -rig operations: 1. Ensure regulatory compliance training is complete and key personnel are fully aware of responsibilities. 2. Make sure that the Alaska Clean Seas technician is available at all times. 3. Notify AOGCC of the start of operations and rig inspection for the Argo (M-03) well and post drilling permit and drilling hazards in dog house. Post well sign on rig. 4. Drill 48" hole, install 20" x 34" insulated conductor and pour arctic concrete on the outside of the conductor. Install 8' wide by 5' deep cellar on pad. Conductor and cellar tops to be positioned according to diverter space out schematic. Bottom of cellar will be cemented. Install two 4" threaded outlets with plugs below landing ring for taking cement returns and washing out diverter. Install FMC 20" SOW x 19.995" Slick -Neck with 18.75" DIA Bowl, Alloy landing ring. Company man and Nabors tool pusher will verify 20" cut off height. 5. Diverter riser assembly should be made to length according to diverter line direction through sub base. Drilling flowline riser above 21-1/4" annular riser should also be pre -fabricated to correct length according to diverter space out schematic. Pre -assemble diverter spool, annular and flowline riser for installation in one piece. Outlet flowline connected to the FMC riser 16" outlet to be minimum of 100 feet of 16", 0.375" wall thickness with hydraulic knife valve off of riser. Ensure clearly marked "ON DIVERTER — Warning Zone" signs are on location and ready to position (On each side and ahead of the vent line tip) once the rig has moved in and rigged up. 6. Control heat in cellar area to keep area cool to minimize thawing. Keep cellar pumped out at all times. 7. Ensure Baker-Lok is on location. 8. Casing pup joints should be made at Baker's machine shop in Deadhorse for the casing hanger installation. Two 9-5/8" 40# L-80 buttress and two 7" 26# L-80 buttress pups 3-4 feet long will be required. Two each 9-5/8" & 7" landing joints should be made at lengths according to the space out plan for landing the 9-5/8" & 7" casing strings. Landing joint drawings provided by FMC. 9. Class II cuttings and liquid mud waste will be hauled to BP's Grind & Inject facility at DS 4. Class I waste that has not been downhole may have to go to BP's Pad 3 facility. This plant is always busy and wait times are long. Disposal at CPAI's 1B pad may be available, confirm with drilling manager prior to releasing any shipments. Try to minimize generation of Class I waste whenever possible, and consider beneficial re -use of these wastes, when possible. Additional cuttings storage tanks (Shale Bins) should be available on location to avoid interruptions in drilling of surface hole. 10. Conduct specific tour safety meetings with each crew on the potential of gas hydrates or shallow gas and the handling of same. 11. Ensure that Alaska Clean Seas technician is available at all times. 12. Have mud loggers rigged up prior to spud. Gas readings will be monitored constantly for presence of hydrates or shallow gas. H2S gas is not expected. All depths will be measured from RKB. After ground level elevation has been determined and RKB to ground level measured, all elevations including ground level, (ice level, ice thickness under sub base if applicable) and should be recorded on morning reports and the IADC report. Once the BOP stack is installed, a drawing showing RKB to each preventer and wellhead equipment should be constructed and placed in the rig floor doghouse and Co Rep & Toolpusher offices. 13. Strap drill pipe in the derrick and pick up 500' of 5" HWDP. 25 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Argo Drilling Program SMU M-04 14. Notify AOGCC of intent to spud and plans to perform diverter function test and drills. 15. Install 6" liners in both rig pumps prior to spud. See BHA hydraulics for nozzle sizes and optimum circulation rates. 16. Use nylon rabbit (8.75" OD special drift) to drift all 9-5/8", 40# casing including landing joints, casing mandrel hangers and pup joints. 17. Cementers should catch surface water samples and begin running surface casing cement tests. Cementers should be alerted as to spud time and given as much advance notice as possible to deliver cement & cementing equipment to location. Will need 600+ bbls heated water (70-80 deg) for cement jobs. Get from hot water plant in Prudhoe. (Will need two uprights or tiger tanks). 18. Contact TAM port collar representative to ensure the port collar and shifting tool will be on location, and a person available for a second stage cement job on surface casing, if needed. 19. Inventory all pipe, drill pipe, HW drill pipe, drill collars, cross -over subs and pups on location and post the joint count in the rig floor dog house, tool pusher & company man office. 20. Ensure that pipe rams are available for the following pipe sizes: 9-5/8" & 7" casing, 5" & 4" DP, 4-1/2" liner and 3-1/2" tubing. Use VBR's when available. 21. Call FMC technician and GBR to install 20" landing ring and a diverter connector. KR 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Detailed Argo Drilling Program SMU M-04 Operational Drilling Procedures 27 150409 SMU M-04 Well Plan Rev 1 / 11P Brooks Range Petroleum Drill 12-1/4" Surface Hole Argo Drilling Program SMU M-04 Objective: The main objective of the surface hole is to drill the section efficiently and safely, to case off the permafrost and unconsolidated formations below the permafrost and cement the 9-5/8" surface casing to surface. Logging Requirements: MWD / GR / Res ' Surface Drill Pipe Joint Body DP Tensile Pipe WT Grade Conn. TJ OD TJ ID ID MU TQ Torsional Torsional capacity Capacity (ppf) type (in) (in) (in) (ft.lbs) Yield Yield w/conn. (kips) (ft Ibs) (ft.lbs) (gal / ft) 5" DP 19.5 S-135 NC50 6.625 3.25 4.276 26,800 51,700 58,100 .726 560.8 Surface Mud Properties M MD ht Viscosity PV YP API FL pH 0'- B/ Permafrost 8.8-9.1 220-300 20-45 45-70 8-15 9 — 9.5 B/ Permafrost — 9.4 200-250 20-45 45-70 <10 9 -9.5 Surface TD Prior to cement 9.6+ 1 80-100 1 12-25 1 20-25 Surface Section Procedure: 1. Install 21-1/4"x 2000 psi diverter with 16" outlet line as described in pre -rig operations. Function test the diverter to verify the valve on the diverter line opens BEFORE the annular fully closes. The diverter control system must open the side outlet valve and close the diverter element within 45 seconds for this size of diverter. Give AOGCC 48 hour notice to witness test. Fill diverter & riser with water to check for leaks. Record on IADC drilling report. Hold diverter and rig abandonment drill prior to drilling surface hole. 2. Make sure the 4" outlets on the 20" conductor have valves and connections for taking mud returns. Diverter lines to be as straight as possible. Ensure "Warning Zone - ON DIVERTER" signs and the rig well sign are spotted correctly on location. 3. Spud mud will be mixed and hauled from the mud plant in Deadhorse per mud engineer and mud program. 4. Dress drill bit. MU 12-1/4" BHA. ➢ Hughes VMD-3 ➢ 1-16, 3-18's (.964 TFA) 5. Ensure mud loggers are fully rigged up and ready to go. O 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Argo Drilling Program SMU M-04 6. Spud well with reduced drilling parameters. Gradually increase drilling parameters when the BHA is below the conductor shoe. 7. Drill 12-1/4" hole vertically to 500' per the directional plan and mud plan. Controlling ROP may be necessary to prevent packing off, lost circulation or flow over the top of the bell nipple, especially when sliding. Drill to section TD at 2,606' MD/ 2,508' TVD. Hold flow rates at +650 gpm as directional will allow. 8. Actual TD will be based on LWD data. Attempt to place the casing shoe in a minimum 50' shale section, if possible. The geologist will assist in picking casing shoe depth. Adjust TD as required for space out, to leave up to 5-10' rathole depending casing strap for landing FMC 9-5/8" casing fluted mandrel type casing hanger. Drift hanger and pup joint to 8.75". Attempt to drill hole to fit the casing to reduce the number of pups required. 9. Pump a marker high-vis sweep at TD and note surface to surface strokes as an indication of washouts. Make calculations of average hole size and consider adjusting excess cement volumes based on results, if necessary. 10. Circulate the hole clean as per HXR ➢ Backream one (1) stand per bottoms up very slowly • 80 GPM or greater • 80 RPM or greater 11. Once the shakers have cleaned up Backream to the HWDP 12. Lay down the 12-1/4" BHA and download all memory data from MWD/LWD tools. 29 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Run 9-5%8" Surface Casing: Argo Drilling Program SMU M-04 Objective: is to run 9-518" casing to the required depth of 2, 753' MD and to cement the casing back to surface in one stage. Surface Casing Program OD WT Grade Conn. Conn. OD ID (in) Drift (in) Collapse Burst Tensile Yield (in) (ppf) Type (in) (psi) (psi) (kips) 9-5/8 40 L-80 I BTC-M 10.625 8.835 8.75 3,090 5,750 916 Running Method Conventional — Volant CRT Surface Casing Connection Make Up Torque (ft-lbs.) OD WT Opt. (in) (ppf) Grade Conn. Type Make Up Torque 9-5/8 40 L-80 BTC "Triangle "Torque values for the BTC casing are determined at the rig by making up the connection to the make-up mark (base of triangle). Record torque values for the first 10 connections made up in this manner and average. This average will be used as the make up torque for the remainder of the string. Casing Running Notes a. Perform dummy run prior to running casing b. Surface casing will be landed on hanger, emergency casing slips will be used as contingency. c. Rig up and utilize Volant CRT for the casing job. d. Break circulation before reaching the base of the permafrost if casing run indicates poor hole conditions. e. Any packing off while running casing, and especially while above the base permafrost, should be treated as a very serious problem if major returns are lost. It is preferable to pull casing out until circulation can be re-established rather than risk not getting cement to surface. Contact the Drilling Superintendent if the casing packs off high for discussion of the options. f. Have FMC representative verify the correct casing hanger is on location prior to the point at which it is needed. 30 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Running Procedure Argo Drilling Program SMU M-04 1. Inspect and DRIFT all Surface Casing to 8.75". 2. Break circulation before reaching the base of the permafrost if casing indicates poor hole conditions. 3. While running in the hole with the casing: Obtain SO Weights as per HXR 4. MU shoe track and verify that floats are holding. Surface Casing Running Order 1 Float shoe Bakerlock 2 2 joints 9-5/8" 40# L-80 BTC casing Bakerlock 3 Float Collar Bakerlock 4 9-5/8" 40# L-80 BTC casing 5 **TAM BTC port collar +/- 500 ft 6 9-5/8" 40# L-80 BTC casing to hanger 7 FMC 9-5/8" mandrel hanger 8 9-5/8" landing joint Slick landing joint if not running the TAM port collar **If TAM port collar is run: • A landing joint, which has a connection that can be broken below the rotary table, will need to be run to allow for running the drill pipe inside the 9-5/8" without needing a false rotary table. Also, the drill pipe running tool needs to be on location and stood back in the derrick ready to run in case the TAM port collar needs to be opened to circulate cement to surface. • If decision to run is at the last minute, ensure the additional footage of the port collar plus handling pup will allow for sufficient rathole below the surface casing shoe. Surface Centralizers +/- 18 9-5/8" x 12-1/4" Bow Spring Halliburton 31 150409 SMU M-04 Well Plan Rev 1 /'Sl� Brooks Range Petroleum 9-5/8" x 12-1/4" Bow 5arine Centralizers • 2 at 5' & 8' above float shoe on stop collars, using stop collars. • No centralization on collar of 15Y joint • 1 at 10' above the Float Collar, using stop collars • From 3rd joint through the tail slurry (500'), 1 centralizer per joint • 2 on casing inside conductor 150409 SMU M-04 Well Plan Rev 1 Argo Drilling Program SMU M-04 63 32 Brooks Range Petroleum Argo Drilling Program SMU M-04 Cement 9-5/8" Surface Casing: Surface Cementing Program Section Casing Size Type of Fluid / Cmt Volume Properties Lead Slurry 376 bbls Density 10.7 ppg (Permafrost L) - Yield 4.03 ft3/sk Tail Slurry Surface 9-5/8" 40# L80 BTC (SwiftCem) 49 bbls Density 15.8 ppg Top of Tail @ 2,078' MD -> ;2.; 5K Yield 1.18 ft3/sk Surface Cementing Notes a. Obtain and review the Test Report from the cementing lab on the job blend prior to pumping the cement. DO NOT pump cement if there are any doubts as to cement quality, quantities, pumping times, or thickening times. b. Use split landing joint if TAM port collar is utilized. It will need to be opened by running tool on drill pipe and this will allow using standard rotary slips. c. Ensure that enough cement retarder is built to keep cement from setting up prior to pumping down disposal well. d. Cementers should catch surface water samples and run surface casing cement tests. e. Cementers should be alerted as to spud time and given as much advance notice as possible to deliver cement & cementing equipment to location. f. Will need 350+ bbls heated water (70-80 deg) for cement jobs. Get from hot water plant in Prudhoe. g. Ensure TIW valve or 2" Lo Torq valve with swage to 9-5/8" BTC is on the rig floor. Surface Cementing Procedure 1. After reaching bottom, rig up and circulate with casing on bottom at 6-8 bpm, if possible, without losing returns. Reduce mud viscosity prior to pumping cement if necessary. ➢ To help ensure good cement to surface after running the casing, and if practical for existing hole conditions, condition mud to YP < 20 Ib/100ft2 prior to cementing the casing but after the casing is on bottom. Have adequate supply of cold lake water on hand to ensure the desired rheologies can be achieved. 2. Rig up to cement and pressure test cement lines. 3. Pump Mud Push Spacer. Shut down and drop bottom plug. 4. Pump cementjob per the attached Schlumberger cementing plan. Cement volumes are based on 50% excess below the Permafrost and 300% excess in the Permafrost. ➢ If necessary, verify that the TAM Tech has located the proper crossovers to combo running tool. ➢ If necessary, rack TAM running tool in derrick and ready to run. 5. Report the number of bbls of cement returned to surface: ➢ Task one person to be in charge of monitoring for cement returns and volume of cement returns 33 150409 SMU M-04 Well Plan Rev 1 t/ Brooks Range Petroleum Argo Drilling Program SMU M-04 ➢ Recommend that a dye or small amount of celloflake be added to the wash or spacer to give an indication of top of cement. 6. Drop top plug after the tail slurry. 7. Pump displacement at 8.5 bpm maximum. 8. Drop circulation rate 3 BPM for last 20 bbls of displacement prior to bumping plug. 9. Pump until the plug bumps and then pressure up to 500 psi above Final Circulating Pressure (FCP) to ensure the plug has landed. If floats do not hold, maintain FCP on casing and shut in cement head for a minimum of 6 hours before rechecking. ➢ Do not over displace the cement (Pump NO MORE than % the shoe joint volume). ➢ Watch for signs of packing -off during pumping operations and closely monitor the cellar area for mud or cement returns around the conductor. ➢ In the event cement is not circulated to surface, pump the calculated volumes and prepare to open the TAM Port Collar (if applicable) for a secondary cement job. ➢ AOGCC and Drilling Superintendent must be contacted prior to beginning top job. Do not proceed with top job without AOGCC approval. 10. Drain and wash cement from riser. Nipple down riser and flush all lines. 11. Nipple up FMC wellhead, orienting the well head valves as indicated on the conductor markings. ➢ If there is any doubt about the proper orientation, call the Drilling Superintendent. ➢ Ensure that the seal between the casing hanger and well head is tested to 5,000 psi for 10 minutes. ➢ Measure the distance from the rig floor to the top flange of the well head and record on the IADC report and in Openwells. Complete the Rig Elevation Record and place it in the electronic well folder. 12. Nipple up the 13-5/8" 5K BOP stack and test per the AOGCC Permit to Drill 0 13-5/8"x 5K Hydril GK Annular preventer 0 13-5/8"x 5K Pipe Rams-3-1/2" x 6" -VBR's 0 13-5/8"x 5K Blind Shear Rams o Mud Cross with 3" choke line and 2" kill line with 1 manual gate and 1 HCR gate valve on each outlet 0 13-5/8" x 5K Pipe Rams-2-7/8" x 5" —VBR's ➢ Test rams and choke manifold components to 4000 psi high / 250 psi low ➢ Test annular preventer to 2500 psi high / 250 psi low ➢ Do not test BOPE against casing. ➢ Notify AOGCC 24 hours prior to performing BOP test. ■ PERMIT TO DRILL BOP testing frequency: 14 DAYS as Notified by AOGCC 34 150409 SMU M-04 Well Plan Rev 1 Argo Drilling Program Brooks Range Petroleum SMU M-04 Drill 8-3/4" Intermediate Hole Objective: The main objectives of the 8-314" intermediate hole are to efficiently and safely drill below the Kalubik K-1 geologic marker and land the well 10' TVD above the Kuparuk C sand. Set 7" and adequately cement the casing string to meet the criteria for a production well, a minimum of 500' above the Kuparuk Sand. Logging requirements: GR J Res /PWD. Intermediate Drill Pipe Joint Body DP Pipe p WT Grade Conn. Ti OD TJ ID ID MU TQ Torsional Torsional capacity Tensile (ppf) type (in) (in) (in) (ft.lbs) Yield Yield w/conn. Capacity (ft lbs) (ft.lbs) (gal / ft) (kips) 5" DP 19.5 S-135 NC50 6.625 3.25 4.276 26,800 51,700 58,100 .726 560.8 Intermediate Mud properties: Mud MD Weight 116/3 PV yP pH HPHT FL 2,606' — 500' MD t HRZ 9.7 — 10 18/17 8-20 15-35 9.5 -10 <6 500' MD '(` HRZ — TD 10.7 18/17 8-20 15-35 9.5 -10 <6 1, Dress 8-3/4" bit. MU 8-3/4" RSS BHA and test. 2. RIH and tag up on cement inside 9-5/8" casing. Circulate and condition mud. Test casing to 3,000 psi, making sure to chart the test. Displace to new weighted 9.7 ppg mud. Drill shoe track and 20' of new formation below the previous rat hole. 3. Perform LOT. Expect a LOT value in excess of 15.0 ppg based on Mustang #1 FIT. Record the results on the Morning Report and in the IADC report. If a minimum LOT/FIT pressure of 12.7 ppg_is not achieved consult with drilling superintendent prior to drilling ahead. 4. Circulate and establish baseline parameters for clean hole ECD with planned mud weight, pump rate, and rotary speed. Parameters should also include on and off bottom torque, on and off bottom circulating pressure, and pickup, slack off, rotating weights and Slow Pump Rates. 5. Drill ahead in 8-3/4" hole with MWD/LWD/PWD tools. Proper hole cleaning is a major factor in successfully drilling this hole section and running casing to bottom without problems. • DO NOT EXCEED 12.3 ppg ECD, if this value is being approached contact Drilling Manager and Drilling Engineer to determine acceptable way forward. 6. Weight up to 10.7 ppg with treated spike fluid 500' prior to penetrating the HRZ Shale 7. Do not weight up on the fly. Consider a short wiper trip while circulating hole clean and weighting up. Note: The K-10 Campanian sands, 2,550' TVD, are known for potential gas kicks in this area. Have a minimum mud weight of 9.7 ppg prior to drilling out. In the event the K-10 is encountered shallow to any prediction pay close attention to pit levels well prior to drilling the K-10. 35 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Argo Drilling Program SMU M-04 8. Landing Point is 10' TVD above the top of the Kuparuk C Sand. 9. The plan is to drill to TD with one bit. The decision to trip for a bit will be based on the drilling parameters and ability to follow the directional program. 10. Test BOPE every 14 days. Notify AOGCC at least 48 hours in advance of BOP testing. 11. When trips are required, follow good tripping practices. Monitor hole fill up closely on trips out and monitor returns in trip tank on trips in hole. Use top drive and circulation when tight spots are encountered. Approach tight spots with care and work through same by incrementally increasing drilling parameters. 12. Flow -check all major drilling breaks. After making connections, initiate rotation before bringing up pumps. Avoid circulating in the same spot for extended periods of time to avoid excessive washout at one depth. Add lubricants as required to reduce torque and drag. 13. Circulate hole until shakers cleanup per HXR. 14. BROOH taking SLM, stand back 5" drill pipe. 15. PULL THE WEAR BUSHING. 36 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Argo Drilling Program SMU M-04 8-3/4" Intermediate Hole Section Notes and Lessons Learned: While drilling the SMU M-02 intermediate hole section several issues were encountered. The main issues encountered through the section are outlined below: • Faulting • Losses • Drilling Parameters • Directional Control — Landing/ DLS Faulting It is suspected that we crossed a fault —82' into the C-40 where losses were encountered at—4,296' TVD. Upon inspection of the seismic data it is probable that we encountered an area of secondary sub seismic faulting as the well path crossed in between two known faults. To mitigate losses resulting from faulting the well path for SMU M-04 has been modified as to not cross any known faults. Losses The losses encountered in this section were either a direct relation to faulting or potentially exasperated due to accidentally pumping spike fluid down hole prior to the planned weight up scheduled depth. Any pit that includes a high weight fluid must be isolated from inadvertently going downhole prior to being mixed. Going forward 60-80 ppb of sized calcium carbonate will be included in the active system to build a sufficient wall cake immediately and/or serve as LCM in the event that a fault or significant losses are encountered. Ensure that Form -A -Block is on location is the event that dramatic losses are encountered. Drilling Parameters While drilling this section there were no indications of insufficient hole cleaning prior to encountering losses. That being said, care needs to be taken to not overload the hole with cuttings leading to increased circulating pressures and possible detrimental effects to the wellbore. Make all attempts to keep instantaneous ROP 5250 fph to aide in reducing ECD fluctuations while drilling ahead. ESD and ECD shall be continuously monitored. DO NOT EXCEED 12.3 ppg ECD. Directional Control — Landing/ DLS In our attempts to land SMU M-02 the last 2 stands required significant sliding to reach our goals. It is possible that excessive DLS was introduced into the wellbore at the HRZ/ Kalubik interface causing us to be unsuccessful in getting our intermediate casing to bottom. This hole section will be drilled with a Xceed Rotary Steerable BHA which should allow us to drill a much smoother path increasing our chances of running casing successfully to bottom. Additionally, MLT torque rings and an eccentric nose guide shoe will be incorporated into the string to allow for rotation in the event that an obstruction is encountered. 37 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Argo Drilling Program SMU M-04 Run 7" Intermediate Casing: Objective: The objective is to run and adequately cement the 7" casing string leaving cement at least 500' above the Kuparuk Sand. Intermediate Casing Program OD WT Grade Conn. Conn. OD ID (in) Drift (in) Collapse Burst Tensile Yield (in) (pp f) 1 Type (in) (psi) (psi) (kips) 7 26 L-80 I 13TC-M 7.875 6.276 6.151 5,410 7,250 614 Running Method Conventional — Volant CRT Intermediate Connection Make Up Torque (ft.lbs) Opt. OD (in) WT (ppf) Grade Conn. Type Make Up Torque 7 26 L-80 BTC-M 21,080 "Torque values for the BTC casing with Torque rings is 21,080 ft-lbs. Ensure PESI hand is on location to assist in making up the connection to the proper torque limits. Intermediate Casing Running Notes: a. Ensure MLT Torque rings are installed in the pipe shed prior to picking casing up. b. Clean out suction screens on both mud pumps prior to running casing. c. Ensure crossover from 7" BTC-M to TIW valve or 2" 1502 valve is on rig floor. d. Drift all casing with 6.151" OD Nylon Drift e. Ensure stroke counters at drillers console and choke control panel are operating. f. Have centralizers on rig floor. Intermediate Casing Running Procedure: Install 7" casing rams in Top ram cavity. Notify AOGCC of test. Run test plug & close blind rams in middle BOP, test per AOGCC PTD. AOGCC now wants a test of the rams themselves and not just a body test —will need 7" test joint. Pull test plug. Rig up Volant casing running tool. Do not perform the final make-up of casing in high gear. Make up initially in high and then switch to low for final make up to the diamond, to obtain proper torque values. Check that each joint is made up to the base of the triangle. Casing has modified connection, so spare seal rings must be available on location. Always clean the connection thoroughly when replacing seal ring. Float equipment will be installed and Baker locked at machine shop. Make sure that all casing float equipment is installed on the ip n end of casing joints. Drift 7" mandrel type casing hanger and pup 38 150409 SMU M-04 Well Plan Rev 1 Argo Drilling Program Brooks Range Petroleum SMU M-04 with 6.151" OD nylon drift. All 7" casing should be drifted with a nylon rabbit prior to running. Company Rep to confirm casing joint count in pipe shed prior to starting to run casing. 4. Confirm that the hanger running tool and the pup joint on the bottom of the hanger have been pre - torqued in shop. Reference the Wellhead tech and operation manual for details on the hanger system. Install a stack centralizer on the landing joint to prevent the hanger from hanging up in a cavity while reciprocating the casing. Emergency slips are provided by FMC for this wellhead system if the casing gets stuck off bottom and the mandrel hanger can't be landed. 5. Make up mandrel hanger to landing joint and conduct a "Dummy Run". 6. Run 7" casing as follows: 1 Silver Bullet — Eccentric Nose Guide Shoe Baker-Lok 2 2 joints 7" 26# L-80 BTC-M casing Baker-Lok 3 Float Collar Baker-Lok 4 7" 26# L-80 BTC-M casing 5 7" landingjoint +/- 38 1 7" x 8-1/2" Centek Centralizers (Floating) Halliburton 7. Fill every joint with fill up tool. Monitor mud returns closely. 8. While running in the hole with the casing: ➢ Obtain SO Weights per HXR 9. Break circulation at the 9-5/8" surface casing shoe and circulate a minimum of one casing plus annulus volume of mud to ensure pipe is clear. 10. Continue running casing in to open hole, filling each joint through the Volant tool. Break circulation slowly about half way in to the open hole section. Stage pump up to —6 bpm over a 10 minute period and CBU while slowly reciprocating pipe to break gels and condition mud. Watch for losses and adjust flow rate accordingly. Continue running casing to bottom. 11. MU 7" mandrel hanger and landingjoint per FMC representative. Break circulation slowly and work up to -6 bpm. Watch for losses, as before. Run hanger through the table and land the casing in the wellhead at the correct depth as previously measured on dummy run. 12. With casing landed, install the cement head and circulate and condition mud. Reduce the YP and PV per mud program. Break circulation slowly and increase pump rate slowly to avoid breaking down the formation, not exceeding the maximum AV rate used to drill this hole section. If possible, reciprocate pipe 5'-10' while circulating and cementing. 39 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Intermediate Centralizer PlacemAnt 7" Centek Centralizers 15t - On stop collar 5' above float shoe 2"d - No centralizer on next joint 3rd - On stop collar 10' above float collar 4th joint to ±1000' above the shoe o 1 centralizer floated between collars From Iceberg to ±500' above. o 1 centralizer floated between collars 150409 SMU M-04 Well Plan Rev 1 Argo Drilling Program SMU M-04 40 Brooks Range Petroleum Argo Drilling Program SMU M-04 Cement 7" Intermediate Casing: Surface Cementing Program Section Casing Size Type of Fluid / Cmt Volume Properties Surface 7" 26# L80 BTC-M Tail Slurry (VariCem) 24 bbls Density 13.00 ppg Yield 1.938 ft3/sk Intermediate Cementing Notes: a. Cementers should catch surface water samples and run intermediate casing cement tests. b. Cementers should be alerted as to casing running time and be given as much advance notice as possible to deliver cement & cementing equipment to location. c. Will need —100 bbls heated water (70-80 deg) for cementjobs. Get from hot water plant in Prudhoe. d. Obtain and review the Test Report from cementing lab on the job blend prior to pumping the cement. DO NOT pump cement if there are any doubts as to cement quality, quantities, pumping times, or thickening times. If need be, confer with Drilling Superintendent. e. Do not over displace the cement, no more than %: the shoe joint volume. Intermediate Cementing Procedure: 1. Perform Rig pump efficiency check and confirm +96% efficiency before pumping and displacing cement. 2. Ensure Halliburton re -calculates cement volume based on Iceberg Sand actual deaths ➢ Cement volume is based on 50% excess and at least 500' of annular fill above top of the Kuparuk sand (highest known hydrocarbon bearing zone). Refer to attached cement detail sheet for volumes. 3. Batch mix cement. Test cement lines and pump cementjob as per Halliburton program. 4. Displace cement with He Pumps and LSND water -based drilling mud. ➢ Ensure that the cement unit and rig pumps are manifolded so there will be redundancy in case of any pump failure during displacement. ➢ Pump cement at 5 bpm and displace with 8.0 bpm if possible without losing returns. Slow rate to 3 bpm during last +/- 30 bbls prior to bumping plug. 5. When the plug bumps, pressure the casing to 500 psi over the final displacement pressure and ensure that the string is holding pressure. Notify the Drilling Superintendent if the string will not hold pressure. Bleed off pressure and ensure the floats are holding. If the floats leak, pressure back up to final displacement pressure and shut in cementing head. 6. Close the annular and perform 20 bbl injectivity test with drilling mud down the 9-5/8" x 7" annulus no later than (4) hours after cement was mixed and started downhole ➢ Ensure injectivity for freeze protect (offset wells have seen cement channel into the surface casing and prevent freeze protection). At the completion of the cement job, rig down the cementing equipment; drain the stack. Back out the landing joint. 41 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Argo Drilling Program SMU M-04 Notify AOGCC of test. Change the upper pipe rams from 7" to 2-7/8" X 5" VBR's. Run test plug & close blind rams and perform test per AOGCC PTD. Pull test plug. Install wear bushing. Record all BOP tests on chart and in IADC. 42 150409 SMU M-04 Well Plan Rev 1 Argo Drilling Program Brooks Range Petroleum SMU M-04 Drill 6-1/8" Production Hole: Objective: The main objective of the 6-1/9" hole is to efficiently and safely drill the Kuparuk "C" sand and to maintain circulation and hole stability so that a liner can be run successfully. It is necessary that any fluid losses to formation be controlled with minimum damage to the formation. Logging requirements: GR / Res / Neu / Den / MicroScope / PeriScope Production Drill Pipe Joint Body DP Pipe wT Grade Conn. TI OD V ID ID MU TO Torsional Torsional capacity Tensile (W) type (in) (in) (in) (ft.lbs) Yield Yield w/conn. Capacity (ft lbs) (ft.lbs) (gal / ft) (kips) 4" DP* 14.00 S-135 HT38 5.000 2.438 3.340 19,800 33,000 32,800 .440 403.5 Production Mud properties: Mud Weight PV 1 Tau 0 R6/3 pH HPHT FL 12.3 8-10 >6 13/12 9.0-9.5 <6 1. Pick up-12000' of 4" DP. 2. Dress 6-1/8" PDC bit and MU 4-3/4" RSS BHA per directional driller and test. 3. RIH to TOC. Circulate and condition mud. Test casing to 4,000 psi for 30 minutes. Chart the test. 4. Drill shoe track and a minimum of 20' of new formation (but not more than 50'). 5. Perform FIT to 15.5 ppg EMW. Minimum acceptable FIT is 13.8 ppg. Record the results. LOT from Mustang #1 was 16.4 ppg EMW. 6. Continue drilling to a final TD of—12,082' MD/ 6208' TVD, Follow lost circulation decision tree if losses occur. 7. Circulate and condition mud and hole for running liner. Additions of approved lost circulation materials or spotting of open hole LCM pills to help strengthen the wellbore and reduce the risk of losses may be appropriate prior to running the liner. 8. Circulate, pulling one (1) stand per bottoms up until hole cleans up per HXR 9. BROOH to Intermediate Casing Point @ 300 gpm and 120 rpm. 10. Circulate inside 7" casing shoe and ensure the casing is clean. 11. POOH on elevators. LID BHA. 43 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Run 4-1/2" Slotted Liner: Argo Drilling Program SMU M-04 Objective: This 4-112"slotted liner will be temporarily produced during the initial flow test. Once production data has been captured, the well will be secured and suspended to be utilized as a Conventional Horizontal Producer to support the Mustang field. Production Liner Program CsgO/TTbg Hole Size Wt/Ft Grade Conn. 6-1/8" 4-1/2" 1 12.6 1 L-80 I H521 Production Liner OD WT Conn. Cplg OD Collapse Burst Tensile Yield Grade ID (in) Drift (in) (in) (ppf) Type (in) (psi) (psi) (kips) 4-1/2 12.6 L-80 I H521 4.729 3.918 1 3.833 1 7500 8430 288 Production Liner Connection Make Up Torque (ft-Ibs) OD WT Conn. Min. Opt. Max. Yield Grade Make Up Make Up Make Up (in) (ppfJ Type Torque, ft-Ibs Torque Torque Torque 4-1/2 12.6 L-80 H521 3900 6050 6800 15300 Production Liner Centralization From To Centralizers/Joint Fixed/Floating Type Shoe Linerp 1/joint Floating between collars 4-1/2" x 5-7/8 Volant to H droFORM Y Run 4-1/2" liner Running Order 1 Eccentric Nose Guide Shoe Bakerlock 2 XX joints 4-1/2" Slotted, 12.6#, L80 H521 Slotted Liner Min 150' Liner Lap Bakerlock 3 4-1/2" SLZSXP Liner Tip Hanger Packer Assembly 4 4" DP to Surface 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Argo Drilling Program SMU M-04 Liner Running Notes a) Ensure VBRs have been tested to 4-1/2" prior to running liner. b) Do Not run centralizers in or near the liner lap. c) Use Best-O-Life thread dope or equivalent d) If needed, apply dope sparingly, so the thread profile is still visible e) Have XO from DP thread to liner thread made up to a TIW valve on the rig floor Liner Running Procedure 1. RU Volant casing running tool and run 4-1/2" slotted liner per liner running procedure. Have back up tools on location in case of equipment failure. 2. RU Volant tool. Pick up the liner and 1 stand of drill pipe. Circulate 1 liner volume. 3. Run in hole with liner. Obtain SO Weiehts per HXR 4. Slowly and cautiously run 4-1/2" linerto bottom. Minimize surge pressures on the formation caused by too high a running speed. 5. Specific run speeds to be determined by HXR. 6. At TD get on depth and set ZXP hanger packer assembly as per Baker 7. Pressure test liner lap to 2000 psi for 30 minutes. Chart test. 8. Displace to clean 12.3 ppg completion fluid per program. 9. POH LD 5" DP. 10. RU and prepare to run completion per completion procedure. Completion: 1. Pull wear bushing. 2. Run 3-1/2" completion per tubing tally 45 150409 SMU M-04 Well Plan Rev 1 Brooks Range Petroleum Well Overview: Argo Drilling Program SMU M-04 Section Hole Casing Wt. Connection Mud Type Mud Weight Size Size Surface 12-1/4" 9-5/8" 40 BTC Spud Mud 8.8 - 9.6 Intermediate 8-3/4" 7" 26 BTC-M LSND 9.7 - 10.7 (MLTTQRings) (ModifiedFloPro) Production 6-1/8" 4-1/2" SL 12.6 Hydril 521 FloThru (K+ Formate) 12.3 Tubing --- 3-1/2" 9.3 TC-II Inhibited Brine 12.3 (K+ Formate) Test Pressure LOT/FIT Casing Test Section Low High Min Expected Test Pressure Chart Time Diverter 250 2500 BOP 250 4000 Tree 5000 Surface 12.7 15+ 3000 30 Intermediate 13.8 15+ 4000 30 Liner Lap 2000 30 Tubing 3500 30 MITA 1 4000 30 46 150409 SMU M-04 Well Plan Rev 1 /NIOAN Brooks Range Petroleum Brooks Range Petroleum Corp. - AOGCC 10-401 Attachments CD�m^y$u4�'mo4�$$PvRl-88^m.;�v!�woi-,kim.�3"d 9 6 c N rn c CT 2 m vv � tl c7b5 2 E o a c r R r o ppjj oo OVA^ N g Z �ppQ (`5�x iM9010 �LLmrGr°3 0 j z i O O r 5 e g 8 4 E�03W ra W mm so O CC C LL_ n 6 C a m p 0 �FfE9ggztl�F� �s r H LL f/1 NV N a g gm Fib w W6 G E. o m v a a 3 w o Lp E� .wy NE^N�N z°m`m2ILCL (L.ztl 0 N O Y a?=>' @ p a O N m tl p • 3 CJ �= 0 6 S@ o9302oZ z n°o g g 9 C C �YI�;mQ��HUJJ V(9� C N m rn OI O1 N N OI O Y t0 N tVq0� N (QO IV �o.�o t0? 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Traveling Cylinder Plot NoGo Region EOU's based on: Oriented EOU Dimension N NoGo Region Anti -Collision rule used: Minor Risk - Separatlon Factor 280 270 260 North 350 0 10 190 180 170 TRAVELING CYLINDER PLOT Client SMU Field Structure Mustang Pad Well Plan (E) SMU M-04 Borehole Plan SMU M-04 Date 19-Nov-2014 90 00 /A-I�AN Brooks Range Petroleum *See Attached Drilling Program Brooks Range Petroleum Corp. - AOGCC 10-401 Attachments /NIIOAN Brooks Range Petroleum Brooks Range Petroleum Corp. - AOGCC 10-401 Attachments /*111111*� Brooks Range Petroleum Increased Pore Pressure in Kuparuk (High) The closest offset wells Mustang #1 (M-01) and North Tarn 1A had lost circulation and a kick. It is believed that high mud weight of 12.5 ppg used to drill the production hole through the Kuparuk "C" led to fracture and losses in the Kuparuk "A". Subsequently, a kick was taken and circulated out with 11.8 ppg mud weight. The formation evaluation data from the N Tarn-1A well shows that the reservoir pressure of Kuparuk "C" is —12.0 ppg and the Kuparuk "A" has 10.4 ppg pressure resulting from the injection activities on neighboring pads and depletion due to production. Mud weight planned for the production section is 12.2 ppg+ and should provide a sufficient overbalance across the producing intervals. Mud loggers will monitor pit levels, background gas and other indicators of increasing pore pressure. Flow checks will be performed on connections and the well will be monitored during trips to ensure proper fill up and to minimize swabbing. Lost Returns ( A risk of losses will be present during drilling the Lipizzan 1 (SMU M-02). The Kuparuk formation is known to be highly fractured in places. The mud density and rheology will be maintained according to the mud program. The PWD tool will be used to monitor real-time ECDs close to the bit and to help identify losses at the earlier stages. Pit levels should be monitored at all times and tripping speeds will be controlled to reduce surge & swab values. A contingency lost circulation plan (LCM decision tree) will be utilized to control losses. Gas Hydrates ( Experience in Tarn area shows that this area has hydrates. The mitigation is to drill the permafrost section quickly and get surface casing set without delays. The section will need to be drilled with MW of 9.3 ppg+ to overbalance the gas sands. There is commonly a thin tarry sand at the 'K-10' level, about 2590' TVD; it is equivalent to the Tabasco sands but being thin (to non-existent in places) and tarry, it has not shown commercial potential in this area (yet). Minimum mud weight pre- K-10 sands is 9.8 ppg. In addition, pre -treating mud with Lecithin and Screen Kleen, known to prevent gas hydrate destabilization. Lecithin and Screen Kleen will be used in the surface mud system. Shale Instability ( Known instability issues in this area are associated with drilling the HRZ shales. Mitigation includes use of "shale inhibitors" (Resinex, Soltex) to coat potentially unstable zones and help maintain a low fluid loss. Minimizing directional changes through the shales and increasing mud density at the first sign of shale instability. According to the HRZ shale stability study and based on the hole inclination and the azimuth, the mud weight required for drilling the HRZ shales in the Lipizzan intermediate hole should be in a range of 10.4 - 10.7 ppg. Brooks Range Petroleum Corp. - AOGCC 10-401 Attachments Brooks Range Petroleum Hole Cleaning ( In the surface interval, borehole cleaning issues may arise while drilling through the permafrost due to the presence of loose gravel and boulders. A few mitigation measures can be used: drill as fast as practical, do not leave the hole open for a long time, keep the mud cold and viscous. In the intermediate interval maintain fast drilling, practice short trips every 24 hours or 1000'MD, whichever comes first, minimize static times and run the casing as soon as practical after the borehole is drilled. Plotting torque and drag daily will indicate problematic trends. Record torque and pick-up, rotating, and slack off weights on every connection. Stuck Pipe due to Borehole Packoff ( 'lediun ) Borehole packoff can occur due to conglomerate drilling and/or improper hole cleaning. Monitor cuttings loading in the annulus and control drill and/or circulate out to clean hole and lower ECD. The use of a PWD tool will help in identifying potential hole cleaning issues in real time. Stuck Pipe due to Differential Sticking ( Differential sticking occurs when BHA is across permeable sands. Pipe movement (reciprocation and/or rotation) at all times helps to prevent sticking. Stabilizer placement should be optimized. The risk of differential sticking in the Lipizzan well exists; due to the section requirement to drill with—10.4-10.6 ppg mud, which gives overbalance across normally pressured permeable zones. Bit Balling ( Bit balling has occurred in the area. In the Lipizzan well, the problem should be mitigated with use of Nut plug and detergent sweeps which are sometimes effective in reducing clay balling effect. The addition of SAPP down the drill pipe on connections can also help alleviate this problem. Well Proximity Risks ( The closest wellbore to the Lipizzan (M-02) well is Mustang #1 (M-01) and North Tarn #1A which is located approximately 180 feet away at surface. Directional anti -collision simulation indicates there is no anticipated interference expected between wellbores. Brooks Range Petroleum Corp. - AOGCC 10-401 Attachments Brooks Range Petroleum Brooks Range Petroleum LOT/FIT Procedure 1. Drill out the shoe track and clean out any rat hole from the previous hole section below the shoe. From this depth, drill an additional 20 ft (minimum) to 50 ft (maximum) of new hole. 2. Circulate the wellbore clean and ensure MW in = MW out. Record this value. Line up one mud pump on the kill line. Isolate the other pump(s). 3. Turn on the pump to flood the kill line and to ensure the hole is full and that no air is present in the circulating system. 4. While pumping, ensure that the pump pressure gauge and the gauge on the chart recorder are reading the same pressure. 5. Shut down the pump, position a tool joint at the rig floor and close the upper pipe rams. 6. Bring the mud pump on line slowly at iA -1/z bbl per minute and watch for pressure to start increasing. CAUTIOUSLY look down the hole to verify no fluid is leaking past the closed pipe rams. Record the pressure from the char` recorder vs strokes pumped every 2 or 3 strokes pumped. The pressure should increase in a linear fashion vs strokes (Volume) pumped. 7. To perform a LOT (Leak -off Test), continue pumping and recording pressure vs strokes until the pressure deviates from a straight line trend. Obtain one or two additional readings to confirm this deviation from linearity. 8. Shut down the pump and continue to record pressure vs time, initially every 30 seconds for 2 minutes and then every minute for an additional 8 minutes. 9. Plot the points for the pressure build up vs volume pumped on one chart and the pressure drop vs time on a second chart. io. By looking at the chart of pressure vs volume pumped, the leak -off pressure is the point at which the curve deviates from a straight line trend. :Li. Use the formula: Leak off(EMW = MW + LO Pressure/(Shoe TVDx.052) 12. The FIT follows the same operational steps as previously described, except that the pressure is increased to a pre -determined value previously calculated, where the plot of pressure vs volume pumped does not deviate from a straight line. Using the same formula, the FIT value is obtained. If however, deviation from a straight line does occur, do not keep pumping. The leak off pressure has been reached and additional pumping may cause the formation to break down. 13. The final step is to bleed off the pressure from the test and measure the volume of fluid returned to a small pit such as the trip tank or small pill pit. Depending on well design and depth, this volume bled back could be small — maybe no more than i bbl. Brooks Range Petroleum Corp. -AOGCC 10-401 Attachments Brooks Range Petroleum Brooks Range Petroleum Corp. - AOGCC 10-401 Attachments Qw�o, 0, :p�[Y o -C p oz3p o�a¢u �o�a"' Z S� 4 \O -A tt A-.vfc_ 10� I I I I 1 I � i.'__ __________ -___ 1 I I 1 1 I I I g i I I I I 1 I � I j I I (7 I I Z I I 1 I I 1 _ 1 I I I 1 I I I I I I I - I 1 I s I I I I 1 V/ 1 a 1 I � I e i O O L m Ln 4� C GJ E 4-1 v cn Q 0 0 U U O Q Q O U E v O Qj a N tw c mY/ LV Y O 0 m a O Ln E U m ate+ Q r-I O 17 O r-i U U U O Q a Lo U E v 0 L Q� a GJ OA C Y O p m Brooks Range Petroleum 1 26.31 1T19.OT) 4 I/16-S000 92_94 239tl.051 0 4 1/16-5000 M00 120 CV r I - I () 1 Q 4 1/I6-5000 MOD 120 CV () O 0 4 I/I6-5000 MOD 120 CV ACTO (SUBSUpiFLE SAFETY VALPLVEIEI (12 77,971 577.8 13tl1 5.66) 1815, q I/16-5000 MOD 120 GV 4 I/I6-5000 (R-591 @ MONITOR PORT 0.62 f219.951 TEST PORT 10 LOL%DOWN SCREWS II-5000 IP-54) SCSSY E%IT 1 2 1/16-SOC MOD 120 CY 6 '0.B0.6 d I 13.23 (Ig61,611 I]3 �.] 1 1 TEST PORT ---- 10 LOCg00WN SCREWS - 11-5000 IR-541 2 I/16-5000 MOO 120 GV 22.75 12 t5 iT,tl51 C 9.15 O f2]2.411 4 ITEM PART NIIYRER GESCRIPIICN 3 13-]DOb30 —EATER LAM101N0 RING 2 P131322-0005 9% CASING HANGER ] P172070 SLIP -IN LANDING RING 10 4 P164B19 CASING HEAD ASSENBLY 5 I3-300-7I19 GEN 5 TUBINO READ ASSEMBLY 6 P123277-.132 7 CASING HANGER 1 12-I50-016 7 PAL%OFF ASSEMBLY B P156993 TU61NG HANGER ASSEMBLY 9 102-0- TUBING HEAD ADAPTER ASSEMBLY 10 12-09] Ii4 1% L-21 LASING HANGER 11 PIIS334-0005 BELL NIPPLE 12 12-093-H2 7 C-21 CASING MANGER -20'00 CASING 9 5/0' 00 CASING / 7' 00 CASING L,1 4 1/2.OG CASING // ^ �J o l-ROOKs RANOM [PE- ROO LE UM Ln GENERATION 5 WELLHEAD N 20 X 9 5/8 X 7 X 4 1/2 REF DM1000422348 O OM100023001 PRIVA AND CONFIDENTIAL REVISIONS DESCRIPTION O A 12-05-11 -AGAI;I�°T`;;",� SURFACE WELLHEAD LAYOUT, Z.MAROUEZ 12-05-n .2EBE.,1Arr �NP GENERATION 5 WELLHEAD,- fMCTlcMobpltl II-5K X 4 1/I6-5K TREE, 2•MARDUE2 12-05_11 BROOKS RANGE °ETROLEUM d.000CLAS 12-05-11 R. HAMILTON 12-05-II DM 1001256 5 2 The Model i Zo Gate Valve Patented non-elastome stem packing is inert tc fluids Non -rising stem protects threads from exposure to damage or environmental corrosion Selective metal -to - Full metal -to -metal sealing i-duty, tapered roller bearings ak point on stem allows tingency break -off outside ;tem packing Replaceable gate lift nut also acts as self -centering feature to lower torque and enhance sealing reliability Model 120 With the growing demands of the oilfield, reliability is a necessity. At FMC Technologies, we understand your requirements- that's why we provide solutions to meet your real -world needs. Tested an additional 300 cycles beyond API 6A PR2 Annex F and ISO 10423: 2003 requirements, the Milo can withstand temperature ranges of -75 to 35oF. With metal -to -metal seals throughout the valve and bubble -tight UV stem packing, the M12o's design significantly decreases the opportunity for any leakage to occur. Model 125 For working pressures between 500o and 6500 psi, the Model 125 gate valve is a cost -reducing alternative to a valve with a ioK pressure rating. Adapted from the Milo, the M125 shares the same key features and operational benefits as the Milo with upgrades to some of the key components. In addition, the M125 is also tested and qualified to API 6A PR2 (Annex F) ISO 10423:2003 and the FMC Pressure/ Temperature Endurance Cycle Test, passing a total of 500 cycles. MCTechnologies f MCTechnologies Model i Zo Technical Data A Nominal Size (in) Working Pres sure (psi) Dimensions (inches) Flanged End Weight (Ibs) Threaded End Weight (Ibs) # of Turns to Open/Close A B C D 2 1/16 2000 11.620 2o.640 5.157 10.000 165 150 12 1/2 3000 14.62o 20.640 5.157 13=0 165 150 12 1/2 5000 14.62o 2o.640 5. 157 13.000 165 150 12 1/2 2 9/16 2000 13.120 22.457 6.140 10.000 275 260 15 1/2 3000 16.620 22.457 6.140 13.000 275 26o 15 1/2 5oco 16.620 22.457 6.140 13.000 275 260 15 1/2 31/8 2000 14.120 25.591 7.234 10.000 330 315 181/2 3000 17.120 25.591 7.234 15.00o 310 315 181/2 .5000 i8.62o 25.591 7.234 15.000 330 315 181/2 41/16 2000 17.120 28.851 8.953 15.0oo 590 - 231/2 3000 20.120 28.851 8.953 18.000 590 2 12 3 / 5000 21.62o 28.851 8.953 18•� 590 231/2 51/8 2000 22.120 34.067 10.430 20.000 880 281/8 3000 24. 120 34.067 10.430 20.000 880 281/8 5000 28.62o 34.o67 10.430 26.00o 880 - 281/8 6 3/8 2000 22.120 45.350 14.010 1335 - 381/4 3000 24.120 45.350 14.010 1315 - 38 1/4 5000 29.000 45.350 14.010 27.000 1335 - 381/4 Model i • Gate Valve, QUalificatiolls Material Class AA BB CC DD EE FF HH Forged Alloy Forged Alloy Forged Stainless Forged Alloy Forged Alloy Forged Stainless Forged Alloy Body & Bonnet Steel Steel Steel Steel Steel Steel Steel w/CRA Gates & Seats Alloy Steel Stainless Steel Stainless Steel Alloy Steel Stainless Steel Stainless Steel CRA Stem Alloy Steel Stainless Steel Stainless aSteel Alloy Steel Stainless Steel Stainless Steel CRA Patented UV Patented UV Patented UV Patented UV Patented UV Patented UV Patented UV Stem Packing Design Design Design Design Design Design Design Stainless Steel/ Bonnet Gasket I Stainless Steel Stainless Steel Stainless Steel I Stainless Steel Stainless Steel Stainless Steel CRA f MCTechnologies PDS10002497 - C PRODUCT DATA SHEET, HY-80 HYDRAULIC PISTON ACTUATOR Rev ECN No. Date Reviewed By Approved By Status C 4132895 02-DEC-2009 Ang, Chee Poh Deocampo, Nani RELEASED Summary: This Technical Data Sheet contains the features, design specifications and ratings of the Model HY-80 Hydraulically Operated Piston Actuator. This actuator is designed to operate the following valve sizes and pressure ratings: Valve Size (in) Pressure Rating (psi) 1 13/16 10 / 12.5 k 21/16 5/6.7/10/12.5k 29/16 5/6.7k 31/8 5/6.7k Subject to contractual terms and conditions to the contrary, this document and all the information contained herein are the confidential and exclusive property of FMC Technologies, and may not be reproduced, disclosed, or made public in any manner prior to express written authorization by FMC. ** RELEASED FOR MANUFACTURE ** -- Published: 12/02/2009_15:09:33 fMCTechnologies PDS10002497 - C • Rising Stem Design to provide visual identification of gate position • Springs captured in spring container • Easy and Quick Disconnect Feature allows entire power section to be removed from the Actuator bonnet assembly • AP16A Valve Key Features • Bi Directional metal to metal gate to seat and seat to body • Metal to metal backseat • Metal to metal bonnet -body • FMC patented UV stem packing • Tested in accordance with API 6A, PR2, Annex F, and 300 cycle FMC Endurance Test Technical Description • Rising stem design for positive identification of gate position • Prepped to receive electrical position indicator Subject to contractual terms and conditions to the contrary, this document and all the information contained herein are the confidential and exclusive property of FMC Technologies, and may not be reproduced, disclosed, or made public in any manner prior to express written authorization by FMC. RELEASED FOR MANUFACTURE - -- Published: 12/02/2009_15:09:33 f MCTechnologies Technical Description Actuator • Hydraulic Piston: HY-80 • PSL-1: API Specification Level • PR2: API Performance Level • AA : API Material Specification Level • P-U (-20° F to 250' F, -29°C to 121IC) : API Temperature Class • 5,000 psi (345 bar): Cylinder Working Pressure • 7,500 psi (517 bar): Cylinder Test Pressure • Cylinder Upper Thread: External Left Hand M64 thread • API 14" Female fittings on control port • Repair Kit • Solid Lock Out Cap • Fusible Lock Out Cap • Metal Stem Protector • Transparent Stem Protector • Mechanical Over -ride PDS10002497 - C Valve • Valve Size: 1 13/16 (10 & 12.5 k) 2 1/16 (5, 6.7, 10, & 12.5 k) 2 9/16 (5 & 6.7 k) 3 1/8 (5 & 6.7 k) • PSL 1-4 API Specification Levels • PR2: API Performance Requirement • AA-HH: API Material Specifications • K-X (-75D F to 3500 F, -60°C to 177°C): API Temperature Classes • Hydraulic Over -ride • Hand Pump and Hose • Electrical Position Indicator Valve Size Required Actuator Control Pressure Formulas At Ambient At Maximum Rated Valve Temperature 1 13/16 10/12.5k P=0.195 (VP) + 260 psi P=0.256•(VP) + 260 psi 2 1/16 5/6.7k P=0.246.(VP) + 250 psi P=0.322•(VP) + 250 psi 2 1/16 10/12.5k P=0.214•(VP) + 250 psi P=0.290.(VP) + 250 psi 2 9/16 5/6.7k P=0.327,(VP) + 230 psi P=0.435•(VP) + 230 psi 3 1/8 5/6.7k P=0.474.(VP) + 200 psi P=0.625•(VP) + 200 psi Where: P = Actuator Control Pressure in psi VP = Valve Body Pressure in psi References Documentation file for the Model HY-80 Hydraulic ADF10004093 Actuator Subject to contractual terms and conditions to the contrary, this document and all the information contained herein are the confidential and exclusive property of FMC Technologies, and may not be reproduced, disclosed, or made public in any manner prior to express written authorization by FMC. ** RELEASED FOR MANUFACTURE ** -- Published: 12/02/2009_15:09:33 f MCTechnologies PDS10002497 - C E E E E E S E c E N N U7 W 07 ^ V 0 V O .y N CO �N�q0 ((7 N oc (D N 03 i0 N Ln r C d E E O c c E c E C E C E N U v N o to, c0 CO M Co M M M M M (000 CC E C C C E C N m N Lo N u7 N Ln N U) N u0 YO •- aW� N r V r V 40 r cc cc M `V N N NN 7 Y (i E E a c E c c E c c E a m r17 O) N N00 NCo N co N N N (N N N Y L U( T 0) D CA ) Y ul m Y W C d LL tr� M M .N�- OM 00 M N 3 M L N (n (n p_ Y� 9 XN A m Y-0 m V Q (D N Y G m :DCL d� J J J 3 0 75 N q� N 5 N FU N ru V to co N b 0 (p O O O C O O > O O O O M hE NE > a �� nC E n� E "E E �� e+ CD C Cn (D (D (D '0 CD 0SO r- W L n U) U) I- 0� u') r, CC) L6 .y a M M M M M o E E S E E E E IC �- N (p� N �j th N r Ln N 01' 41 N U) (D N (rj f` co m. c0 c L o D C1 Ct Q d Cl Y N= N 9 N p Ir (n Q 00 W N .0@ 00 i d a N r r N '- N r m a rn LO n (D > N = r r \ �- Co 10 > N N N M L e d N M Subject to contractual terms and conditions to the contrary, this document and all the information contained herein are the confidential and exclusive property of FMC Technologies, and may not be reproduced, disclosed, or made public in any manner prior to express written authorization by FMC. ** RELEASED FOR MANUFACTURE ** -- Published: 12/02/2009_15:09:33 +MCTechnialiogies PDS10002497 - C HY-80 113/16-10/12.5K 4000 N a 3500 ----- — - - - - 3000 --- --- ----- — a 2500 ---- 0 - 2000 Break Open (350F) 0 Brea Open(250F 0 1500 -w! • Break Open (Ambient) � loao .,. ----Hold Open 500 Cr 0 T m 1000 3000 5000 7000 9000 11000 13000 Valve Pressure (psi) HY-80 21/16-5/6.7K 3000 N a 2500 - N a 2000 0 c0 1500 Break Open (350F) U Break Open (250F) 0 laaa Break Open (Ambient) Hold Open y 500 '� "'' — w rr 0 -- u o: 1000 2000 3000 4000 5000 6000 7000 Valve Pressure (psi) Subject to contractual terms and conditions to the contrary, this document and all the information contained herein are the confidential and exclusive property of FMC Technologies, and may not be reproduced, disclosed, or made public in any manner prior to express written authorization by FMC. ** RELEASED FOR MANUFACTURE ** -- Published: 12/02/2009_15:09:33 f MCTechnologies 4500 N s 4000 d 3500 N N d 3000 a 2500 g 2000 « 1500 m t 1000 Q m 500 a 0 w or 1000 HY-80 21/16-10/12.5K 3000 5000 7000 9000 11000 13000 Valve Pressure (psi) PDS10002497 - C Break Open (350F) Break Open (250F) Break Open (Ambient) • Hold Open HY-80 2 9/16-5/6.7K 3500 N a w 3000 2500 a` 0 2000 c Break Open (350F) ` 1500 Break Open (250F) 1000 — Break Open (Ambient) �+ 500 '� ��—•Hold Open w __ Cr 0 — ------ T_ 1000 2000 3000 4000 5000 6000 7000 Valve Pressure (psi) Subject to contractual terms and conditions to the contrary, this document and all the information contained herein are the confidential and exclusive property of FMC Technologies, and may not be reproduced, disclosed, or made public in any manner prior to express written authorization by FMC. ** RELEASED FOR MANUFACTURE ** -- Published: 12/02/2009_15:09:33 f MC Technologies PDS10002497 - C HY-80 31/8-5/6.7K 5000 - - - 4500 - - -- N 4000 -- v 3500 ---- a c 3000 c 2500 Break Open (350F) c 2000+� Break Open (250F) • 1500 00_ ' Break Open (Ambient) +.. + Q 1000 ++.. +'+ ---•Hold Open ' 500 Cr 0 v 1000 2000 3000 4000 5000 6000 7000 Valve Pressure (psi) Subject to contractual terms and conditions to the contrary, this document and all the information contained herein are the confidential and exclusive property of FMC Technologies, and may not be reproduced, disclosed, or made public in any manner pr or to express written authorization by FMC. ** RELEASED FOR MANUFACTURE ** -- Published: 12/02/2009_15:09:33 Brooks Range Petroleum Brooks Range Petroleum Corp. - AOGCC 10-401 Attachments A - z Lu p 2 NA ���rya �a2=- gas^gggg_ 3aa7a szZ gggig A2 2_B.. 19 Caw �1 ea <sg a 8 ^��a s- �xts-^saq^asaxsa 9; FRS. axoxrx?F3'�`'�jF'Es` ~ N p 2 m G r r r s r s s s s r s s s s a r s s r r s s s r s r s r s s s r s s r r s r v a W l� bb yy bb u y o Y L L Y L L 4 Y 4 L Y Y - L L L L + L L r• Y L U a m o w w u x-- >< � a: h l- >> s r .. x L = 7 \ \ U O \ \ J \ \ O \ 1 u j \ _ \ Q z 1 Q Q U \ \ ai CL w 3 � ro o 1\ .. a \CL 1a Ld m cL �\ m Alo 9 \ 1 1 \ \ . jsA'.v \ It \ }pt.0 m it gC1•i 1 rU " 1 •�j j y om—: w a� 1 7iz_` O Wa=O o SamO FOH U W G D \ i tm W O y00z0 awmo0�9 a z I ri v vi V �I3 1 N cm 0 N z 11 81 z §I TRANSMITTAL LETTER CHECKLIST WELL NAME: S� <. ��{ p n/ / l fiV 1 �v (JA-1 M- O PTD: Development Service Exploratory Stratigraphic Test _ Non -Conventional FIELD:_&U4 JW 6­k'wx, _ POOL: -Soi nfi � ddt"� K(_' ����r 6' Check Box for Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI The permit is for a new wellbore segment of existing well Permit LATERAL No. , API No. 50- - - - (If last two digits Production should continue to be reported as a function of the original in API number are API number stated above. between 60-69) 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 Pilot Hole name ( PH) and API number (50- - - -� from records, data and logs acquired for well (name onpermit). The permit is approved subject to full compliance with 20 AAC 25.055. Approval to produce/inject is contingent upon issuance of a conservation Spacing Exception order approving a spacing exception. (Company Name) Operator assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the AOGCC must be in no greater Dry Ditch Sample than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this 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 also required for this well: Well Logging Requirements / Per Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.071, !/ composite curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. Revised 2/2015 WELL PERMIT CHECKLIST Field & Pool S MILUVEACH, KUPARUK RIVER OIL - 764150 PTD#:2150650 Company BROOKS RANGE PETROLEUM Initial Class/Type _ Well Name: SOUTHERN MILUVEACH_ UNIT_M-04__- Program DEV Well bore seg ❑ _ DEV / PENDGeoArea 890 Unit 11965 On/Off Shore On Annular Disposal ❑ Administration I17 Nonconven. gas conforms to AS31.05.030Q.1-.A),0.2.A-D) - NA. 11 Permit fee attached NA 2 Lease number appropriate_ - - - - - - - - - Yes ADL0390680,_S_u_rf &_Top Prod Interv; ADL0390691, TD- - - 3 Unique well name and number Yes - Southern- Miluveach Unit M-04 - - 4 Well located in a_defined.pool- Yes S MILUVEACH, KUPARUK_RIVER OIL-- 7641.50,_governed -by Conservation -Order _N_o. 432C- 5 Well located proper distance from drilling unit -boundary - - - - - - - - . - Yes CO 432C contains no spacing restrictions with respect to drilling unit boundaries. - 6 Well.locat_ed proper distance from other wells Yes - CO 432C has no inte_rwelI- spacing -restrict ions. 7 Sufficient acreage available in -drilling unit_ - - - - - - - - - - - - Yes -- --------------------------------- 8 If -deviated, is-wellbore plat_inc_luded Yes 9 Operator only affected party. - Yes . - - - Wellbore_will be- more than 500' from an external property line where- owner_ship or landowners hip- changes. - 10 Operator has -appropriate bond in force - - Yes - Appr Date 11 Permit -can be issued without conservation order - - - - - - - Yes - - - - - - - - - I12 - Permit_can be issued -without administrativeapproval- - Yes - - - - - - - - - - - - - - - - - PKB 4/14/2015 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 NA - - - 15 _All wells _within _1/4_mile -area -of review identified (For service well only)- - NA_ - - - - - - - - - - - - - - - 16 Pre -produced injector; dur_ation_of pre production Less than 3 months_ (Forservice well only) NA- - 18 Conductor string -provided - - - - - - Yes - I_nsulated_ 20" conductor set -at 110.ft. . - Engineering 19 Surface casing_ protects all -known USDWs - - - - - NA_ No aquifers., Permafrost area. - 20 CMT_vol -adequate to circ_ul_ate_o_n conductor & surf_csg - - Yes Surface casing will be fully cemented.- TAM collar at 500fl for -backup._ - - 21 CMT-vol adequate, to tie -in -long string to -surf csg_ No_ 7"_intermediate casing will. have 500ft cement at shoe. - - _ 22 CMTwill coverall known -productive horizons - - _ Yes 4.5"_slo_tted liner in horn production Kup-C 23 Casing designs adequate for C,_T, B &- permafrost Yes BTC calc provided- - - - - - - - - - - - - - - - - - - 24 Adequate -tankage or reserve pit Yes - Rig has steel pits. All waste toapproveddisposal wells. 25 If -a_ re -drill, has- a 1-0-403 for abandonment been approved NA_ - - - - - - - Grassroots well. - 26 Adequate wellbore separation -proposed _ - _ - - Yes - - - - - - - No issues with collision.- - - - - 27 If-diverter required, does it meet regulations - _ _ _ - - Yes - - _ _ _ - N16E_has 16" diverter..._s_ketch of layout is_ prov_id_ed._ - - - - Appr Date 28 Drilling fluid_ program schematic_& equip list adequate- - - - - - Yes . - - - - - - Max formation pressure= 3767_psi_(12 ppg_E_MW)_Will drill _lateral _with 12.3ppg mud - GLS 4/17/2015 29 BOPEs,-do they meet regulation - Yes - - - - - - - N16-E_has 5000_psi_13 5/8" BOPE - - - - - - - - - - - - - - - - - - - - - - - - - i30 _B_OPE_press rating appropriate; test to.(put psig in comments)_ - - - - - Yes - - - - - - MASP = 3163_psi_ Will test BOPE to 4000 psi 31 Choke_man ifold complies w/API_ RP-53 (May 84)- - - - - - - - - - - - Yes - - _ 32 Work will occur without operation shutdown_ - - - Yes - - - - - Need sundry for completion and testing operations... - - - - 133 -Is presence of H2S gas_ probable - - - - - - - Yes - - - - 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 - - - - - - - N_o_ H2S measures required.. Wells on nearby KRU 2M-Pad are- H2S-bearing- - - - - - - - - - - - - - - Geology 36 Data presented on potential overpressure zones - Yes - - - - - - -Expected r_eservoirpressure is 12.0 ppg EMW; will be drilled using_9.0 to 12.3 ppg mud.- Appr Date 37 Seismic -analysis- of shallow gas- zones- - _NA _ - - - - - - - - - - - - - - - - - - - - - - - - - PKB 4/14/2015 38 Seabed condition survey -(if off -shore) - _ - - NA - - - 39 Contact name/phone for weekly progress reports_ [exploratory only] - - - - - - - - - - - NA- - - - - - - Onshore development well to_be drilled._ - - - - Geologic Engineering Public Grassroots Kup C producer. Sundry approval for completion and testing operations is required. GLS Commissioner: Date: C missioner. Date Commissioner Date ��❑�..