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Home My WebLink About216-033ConocoPhillips Alaska P.O. BOX 100360 ANCHORAGE, ALASKA 99510-0360 July 26, 2016 Commissioner - State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Avenue Suite 100 Anchorage, Alaska 99501 Dear Commissioner: ConocoPhillips Alaska, Inc. hereby submits applications for permits to drill a dual -lateral out of the KRU 2M-08 (PTD 192-101) using the coiled tubing drilling rig, Nabors CDR2-AC or Nabors CDR3-AC. The scope of work and window exit type for KRU 2M-08 have been modified from a cement pilot -hole casing exit to a big tail -pipe casing exit. For this reason, please cancel the previously issued sundry (316-116) and permits to drill 216-032, 216-033, 216-034, and 216 -035 for 2M-08. ,/ To account for geological uncertainties, ConocoPhillips requests a variance from the requirements of 20 AAC 25.015 to allow the actual kick-off point to be anywhere along the length of the parent lateral instead of being limited to 500' from the original point. The work is scheduled to begin September 11, 2016. The objective will be to drill laterals KRU 2M-081_1 and 2M- 081-1-01 targeting the Kuparuk A -sands. Attached to this application are the following documents: — 10-401 Applications for 2M-081_1 and 21VI-081-1-01 — Detailed Summary of Operations — Directional Plans for 2M-081_1 and 21VI-081-1-01 — Proposed CTD Schematic If you have any questions or require additional information, please contact me at 907-263-4112. Sincerely, Jeff Connel y ConocoPhillips Alaska Coiled Tubing Drilling Engineer THE STATE 01 1LAVK 1 GOVERNOR BILL WALKER D. Venhaus CTD Engineering Supervisor ConocoPhillips Alaska, Inc. P.O. Box 100360 Anchorage, AK 99510-0360 r' Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov Re: Kuparuk River Field, Kuparuk River Oil Pool, KRU 2M-08AL1 ConocoPhillips Alaska, Inc. Permit to Drill Number: 216-033 Surface Location: 114' FSL, 109' FWL, SEC. 27, T11N, R8E, UM Bottomhole Location: 2731' FSL, 4072' FWL, SEC. 4, T10N, R8E, UM Dear Mr. Venhaus: Enclosed is the approved application for permit to re -drill the above referenced development well. The permit is for a new wellbore segment of existing well Permit No. 216-032, API No. 50-103- 20184-01-00. Production should continue to be reported as a function of the original API number stated above. 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 2�day of March, 2016. FLIED STATE OF ALASKA A, :A OIL AND GAS CONSERVATION COMN JN FEB 2 5 2016 PERMIT TO DRILL 20 AAC 25.005 A t' ! (":a a 1 a. Type of Work: 1 b. Proposed Well Class: Exploratory - Gas ❑ Service - WAG ❑ Service - Disp ❑ 1 c. Specify if well is proposed for: Drill ❑ Lateral 2 Stratigraphic Test ❑ Development - Oil ❑✓ Service - Winj ❑ Single Zone ❑J Coalbed Gas ❑ Gas Hydrates ❑ Redrill ❑ Reentry ❑ Exploratory - Oil ❑ Development - Gas ❑ Service - Supply ❑ Multiple Zone ❑ Geothermal ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket 0 , Single Well ❑ 11. Well Name and Number: ConocoPhillips Alaska Inc Bond No. 59-52-180 KRU 2M-08AL1 3. Address: 6. Proposed Depth: 12. Field/Pool(s): P.O. Box 100360 Anchorage, AK 99510-0360 MD: 14,200' TVD: 5,975' Kuparuk River Field Kuparuk Oil Pool 4a. Location of Well (Governmental Section): 7. Property Designation (Lease Number): ;M Surface: 114' FSL, 109' FWL, Sec. 27, T11N, R8E, UM ADL 25589 d C�to Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 1229' FSL, 4837' FWL, Sec. 4, T1 ON, R8E, UM 2675 3/7/2016 9. Acres in Property: r� 14. Distance to Nearest Property: Total Depth: 2731' FSL, 4072' FWL, Sec. 4, T10N, R8E, UM 25g6 14,325' 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above MSL (ft): 147 . 15. Distance to Nearest Well Open Surface: x- 487949 y- 5,948,986 Zone- 4 GL Elevation above MSL (ft): 106 , to Same Pool: 2M-07, 1574' 16. Deviated wells: Kickoff depth: 12,100' feet 17. Maximum Potential Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 99 degrees - Downhole: 4,658 psig - Surface: 4,041 psig . 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade I Coupling Length MD TVD MD TVD (including stage data) 3" 2.375" 4.7# L-80 ST-L 1,800' 12,400' 6,028' 14,200' 5,975' 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): 12,151' 6,476' none 12,046' 6,397' none Casing Length Size Cement Volume MD TVD Conductor/Structural 79' 16" 250 sx AS II 121' 121' Surface 4,211' 9-5/8" 660 sx PF E & 760 sx Class G 4253' 2744' Production 12,099' 7" 198 sx Class G 12138' 6466' Perforation Depth MD (ft): 11,721'-11,750' sgz'd Perforation Depth TVD (ft): 6,153'-6,175' sgz'd 11,784'-11,807' sgz'd 6,200'-6,218' sgz'd 20. Attachments: Property Plat ❑ BOP Sketch Drilling Program 0 Time v. Depth Plot Shallow Hazard Analysis Diverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date p /% 22. 1 hereby certify that the foregoing is true and the procedure approved herein will not R. Phillips @265-6312 be deviated from without prior written approval. Contact Email ron.l.phillips(a)cop.com Printed Name D.Venhaus Title CTD Engineering Supervisor Signature Q�V Phone 263-4372 Date Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number: I - �3 50- Date: b ' e requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: Other: Oe v tC514 to % 54)0 P5 i^q Samples req'd: Yes No[A Mud log req'd: Yes ❑ No[ij %rvJ /7 f//Gl r p rC v,- v1 tZ'r/f x-3 7' to z 5OCc fj 5i j S measures: Yes M No ❑ Directional svy req'd: Yes g No ❑ Spacing exception req'd: Yes ❑ No❑✓ Inclination -only svy req'd: Yes ❑ No[t' Post initial injection MIT req'd: Yes ❑ No [�J' APPROVED BY Approved by: COMMISSIONER T E COMMISSION Date: 3- Z VTV 3/2//2�, (('� � / ro Submit Form and i,,NfA4L- Form 10-401 (Revised 11/2015) r nths from the date off a prov I (20 AAC 25.005(g)) Attachments in Duplicate ConocoPs philli Alaska P.O. BOX 100360 ANCHORAGE, ALASKA 99510-0360 February 22, 2016 Commissioner - State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Avenue Suite 100 Anchorage, Alaska 99501 Dear Commissioner: ConocoPhillips Alaska, Inc. hereby submits applications for permits to drill a quad -lateral out of the Kuparuk Well 2M-08 using the coiled tubing drilling rig, Nabors CDR2-AC. The work is scheduled to begin March 07, 2016. The objective will be to drill laterals KRU 2M-08A, 2M-08AL1, 2M-08AL1-01 and 2M-08AL2 targeting the Kuparuk A -sands. A separate sundry application was approved to plug the KRU 2M-08 (192-101) perfs to allow these laterals to be drilled. As detailed in the Summary for plugging Sundry (10-403), ConocoPhillips requested a variance from the requirements of 20 AAC 25.112(c)(1) to plug the A -sand perfs in 2M-08. Attached to this application are the following documents: — 10-401 Applications for 2M-08A, 2M-08AL1, 2M-08AL1-01 and 2M-08AL2 — Detailed Summary of Operations — Directional Plans for 2M-08A, 2M-08AL1, 2M-08AL1-01 and 2M-08AL2 — Proposed CTD Schematic If you have any questions or require additional information, please contact me at 907-265-6312. Sincerely, 6 Z - -, ) - 2, Z.4. Ron Phillips ConocoPhillips Alaska Coiled Tubing Drilling Engineer uparuk CT® Laterals NABOnSXA y 2M-08A, 2Mi-08AL1, 2M-08AL1-01 & 2M-08AL2 CIJ� Application for Permit to Drill Document 2RC 1. Well Name and Classification........................................................................................................ 2 (Requirements of 20 AAC 25.005(t) and 20 AAC 25.005(b))................................................................................................................... 2 2. Location Summary.......................................................................................................................... 2 (Requirements of 20 AAC 25.005(c)(2)).................................................................................................................................................. 2 3. Blowout Prevention Equipment Information................................................................................. 2 (Requirements of 20 AAC 25.005 (c)(3))................................................................................................................................................. 2 4. Drilling Hazards Information and Reservoir Pressure.................................................................. 2 (Requirements of 20 AAC 25.005(c)(4))................................................................................................................................................. 2 5. Procedure for Conducting Formation Integrity tests................................................................... 2 (Requirements of 20 AAC 25.005(c)(5)).................................................................................................................................................. 2 6. Casing and Cementing Program.................................................................................................... 3 (Requirements of 20 AAC 25.005(c)(6)).................................................................................................................................................. 3 7. Diverter System Information.......................................................................................................... 3 (Requirements of 20 AAC 25.005(c)(7)).................................................................................................................................................. 3 3. Drilling Fluids Program.................................................................................................................. 3 (Requirements of 20 AAC 25.005(c)(8)).................................................................................................................................................. 3 9. Abnormally Pressured Formation Information............................................................................. 4 (Requirements of 20 AAC 25.005(c)(9)).................................................................................................................................................. 4 10. Seismic Analysis............................................................................................................................. 4 (Requirements of 20 AA C 25.005 c 10................................................................... 4 11. Seabed Condition Analysis............................................................................................................4 (Requirements of 20 AAC 25.005(c)(11))................................................................................................................................................4 12. Evidence of Bonding...................................................................................................................... 4 (Requirements of 20 AAC 25.005(c)(12))................................................................................................................................................ 4 13. Proposed Drilling Program.............................................................................................................4 (Requirements of 20 AAC 25.005(c)(13))................................................................................................................................................ 4 Summaryof Operations...................................................................................................................................................4 LinerRunning...................................................................................................................................................................6 14. Disposal of Drilling Mud and Cuttings.......................................................................................... 6 (Requirements of 20 AAC 25.005(c)(14)).......................... 6 15. Directional Plans for Intentionally Deviated Wells....................................................................... 7 (Requirements of 20 AAC 25.050(b))..................................................................................................................................................... 7 16. Attachments.................................................................................................................................... 7 Attachment 1: Directional Plans for 2M-08 laterals.........................................................................................................7 Attachment 2: Current Well Schematic for 2M-08...........................................................................................................7 Attachment 3: Proposed Well Schematic for 2M-08 laterals...........................................................................................7 Page 1 of 7 February 22, 2016 PTD Application: 2M-08A, 2M-OL..L1, 2M-08AL1-01 & 2M-08AL2 1. Well Name and Classification (Requirements of 20 AAC 25.005(f) and 20 AAC 25.005(b)) The proposed laterals described in this document are 2M-08A, 2M-08AL1, 2M-08AL1-01 & 2M-08AL2. All laterals will be classified as "Development -Oil" wells. 2. Location Summary (Requirements of 20 AAC 25.005(c)(2)) These laterals will target the A sand package in the Kuparuk reservoir. See attached 10-401 form for surface and subsurface coordinates of the 2M-08A, 2M-08AL1, 2M-08AL1-01 & 2M-08AL2. 3. Blowout Prevention Equipment Information (Requirements of 20 AAC 25.005 (c)(3)) Please reference blowout prevention (BOP) schematics on file with the Commission for Nabors CDR2-AC. BOP equipment is as required per 20 AAC 25.036 for thru-tubing drilling operations. — Pipe rams, blind rams and the CT pack off will be pressure tested to 250 psi and to 4,500 psi. Using the maximum formation pressure in the area of 4,658 psi in 2M-35 (i.e. 14.4 ppg EMW)�the maximum potential surface pressure in 2M-08, assuming a gas gradient of 0.1 psi/ft, would be 4,041 psi., See the "Drilling Hazards Information and Reservoir Pressure" section for more details. — The annular preventer will be tested to 250 psi and 2,500 psi. 4. Drilling Hazards Information and Reservoir Pressure (Requirements of 20 AAC 25.005 (c)(4)) Reservoir Pressure and Maximum Downhole Pressure (Requirements of 20 AAC 25.005 (c)(4)(a)) The formation pressure in KRU 2M-08 was measured to be 3,282 psi (10.3 ppg EMW) on 2/1/2015. All of the wells in the 2M-08 vicinity are SI except the 2M-04 injector. The 2M-04 injector has been on a constant injection rate and the 2M-08 has been on a constant production rate, therefore we expect the 2M-08 to be at a constant formation pressure that was measured a year ago at 3,282 psi (10.3 ppg EMW) on 2/1/2015. The maximum downhole pressure in the 2M-08 vicinity, but isolated by a sealing fault is the shut in 2M-35 injector at 4,658 psi (14.4 ppg EMW) from Dec 2015. Potential Gas Zones (Requirements of 20 AAC 25.005 (c)(4)(b)) Wells on 2M pad have injected gas, so there is a chance of encountering free gas while drilling the 2M-08 laterals. If significant gas is detected in the returns the contaminated mud can be diverted to a storage tank away from the rig. Potential Causes of Hole Problems (Requirements of 20 AAC 25.005 (c)(4)(c)) The major expected risk of hole problems in the 2M-08 laterals will be shale instability across faults. Managed pressure drilling (MPD) will be used to reduce the risk of shale instability associated with fault crossings. 5. Procedure for Conducting Formation Integrity tests (Requirements of 20 AAC 25.005(c)(5)) The 2M-08 laterals will be drilled under 20 AAC 25.036 for thru-tubing drilling operations so a formation integrity test is not required. Page 2 of 7 February 22, 2016 PTD Application: 2M-08A, 2M-0,_ .L1, 2M-08AL1-01 & 2M-08AL2 6. Casing and Cementing Program (Requirements of 20 AAC 25.005(c)(6)) New Completion Details Lateral Name Liner Top Liner Btm Liner Top Liner Btm Liner Details MD MD TVDSS TVDSS 2M-08A 12,100' 16,000' 6,050' 6,047' 2%", 4.7#, L-80, ST-L slotted liner; aluminum billet on top 2M-08AL1 12,400' 14,200' 6,028' 5,975' 2%", 4.7#, L-80, ST-L slotted liner, - aluminum billet on top 2M-08AL1-01 11,900, 14,450' 6,073' 6,021' 2%", 4.7#, L-80, ST-L slotted liner; aluminum billet on to 2M-08AL2 11,600' 14,150' 5,915' 6,060' 2%", 4.7#, L-80, ST-L slotted liner; deployment sleeve on top Existing Casing/Liner Information Category OD Weight (ppfl Grade Connection Top MD Btm MD Top TVD Btm TVD Burst psi Collapse psi Conductor 161, 62.5 H-40 Welded 0' 121' 0' 121' 1,640 670 Surface 9-5/8" 47 L-80 AB -MOD 0' 4,253' 0' 2,744' 6,870 4,760 Production 7" 26 J-55 BTC 0' 12,138' 0' 6,466' 4,980 4,320 Tubing 3-1/2" 9.3 J-55 EUE 0 11,610' 0 6,069' 10,160 10,540 7. Diverter System Information (Requirements of 20 AAC 25.005(c)(7)) Nabors CDR2-AC will be operating under 20 AAC 25.036, for thru-tubing drilling operations. Therefore, a diverter system is not required. 8. Drilling Fluids Program (Requirements of 20 AAC 25.005(c)(8)) Diagram of Drilling System A diagram of the Nabors CDR2-AC mud system is on file with the Commission. Description of Drilling Fluid System - Window milling operations: Chloride -based FloVis mud (8.6 ppg) - Drilling operations: Chloride -based FloVis mud (8.6 ppg),IWhile this mud weight will not hydrostatically overbalance the reservoir pressure, overbalanced conditions will be maintained using MPD practices described below. - Completion operations: The well will be loaded with 12.0 ppg NaBr completion fluid in order to provide formation over -balance and well bore stability while running completions. Managed Pressure Drilling Practice Managed pressure drilling (MPD) techniques will be employed to maintain a constant overbalanced pressure on the open hole formation and promote wellbore stability throughout the coiled tubing drilling (CTD) process. Mud weight is not, in many cases, the primary well control barrier. This is satisfied with the 5,000 psi rated coiled tubing pack off and MPD choke. BOPE equipment provides the secondary well control as detailed in section 3 "Blowout Prevention Equipment Information". In the 2M-08 laterals we will target a constant BHP of 11.8 ppg EMW at the window. The constant BHP target will be adjusted through choke pressure and/or mud weight increases to maintain overbalanced conditions if increased reservoir pressure is encountered. Additional choke pressure or increased mud weight may also be employed for improved borehole stability. Any change of circulating friction pressure due to change in pump rates or change in depth of circulation will be offset with back pressure adjustments. Page 3 of 7 February 22, 2016 PTD Application: 2M-08A, 2M-6 .L1, 2M-08AL1-01 & 2M-08AL2 Pressure at the 21VI-08 Window (11,745' MD, 6024' TVD) Usina MPD Pumps On 1.5 bpm) Pumps Off A -sand Formation Pressure (10.3 ppg) 3226 psi 3226 psi Mud Hydrostatic (8.6 pp 2694 psi 2694 psi Annular friction (i.e. ECD, 0.080 psi/ft) 940 psi 0 psi Mud + ECD Combined no chokepressure) 3634 psi overbalanced —408psi) 2694 psi underbalanced —532psi) Target BHP at Window 11.8 3696 psi 3696 psi Choke Pressure Required to Maintain Target BHP 62 psi 1002 psi 9. Abnormally Pressured Formation Information (Requirements of 20 AAC 25.005(c)(9)) N/A - Application is not for an exploratory or stratigraphic test well. 10. Seismic Analysis (Requirements of 20 AAC 25.005(c)(10)) N/A - Application is not for an exploratory or stratigraphic test well. 11. Seabed Condition Analysis (Requirements of 20 AAC 25.005(c)(11)) N/A - Application is for a land based well. 12. Evidence of Bonding (Requirements of 20 AAC 25.005(c)(12)) Evidence of bonding for ConocoPhillips Alaska, Inc. is on file with the Commission. 13. Proposed Drilling Program (Requirements of 20 AAC 25.005(c)(13)) Summary of Operations Background Well 2M-08 was originally drilled and completed in 1992 with 3'/z" tubing and 7" production casing as an A5-sand, gas lifted producer in Kuparuk. Well 2M-08 has been on production since 1993. Ill 2013 the A3- sand was perforated. Prior to CTD operations, the 3-1/2" tubing tail will be perforated and the D nipple at 11,598' MD will be milled out to a 2.80" ID. The existing A -sand perfs will be squeezed with cement to provide a means to kick out of the 7" casing. Following the cement squeeze Nabors CDR2-AC will drill a pilot hole to 11,775' MD and set a mechanical whipstock in the 2.80" pilot hole to kick off at 11,745' MD. Four laterals will be drilled: two to the south and two to the north of the parent well with the laterals targeting the Kuparuk A3 and A4 sands. All four laterals will be completed with 2-3/8" slotted liner from TD with the fourth lateral liner top located inside the 3-1/2" tubing tail. Page 4 of 7 February 22, 2016 PTD Application: 2M-08A, 21V1 . .L1, 2M-08AL1-01 & 2M-08AL2 Pre-CTD Work 1. RU Slickline: dummy off gas lift mandrels and pressure test. 2. RU E-line: Shoot 2' of holes in the 3'/2" tubing tail at 11,593' MD. 3. RU Pumping Unit: perform injectivity test down the tubing. 4. RU Service Coil: Mill out D nipple and cement squeeze the A -sand perforations up to the perforations in the tubing tail. 5. RU Slickline: Tag top of cement and log. 6. Prep site for Nabors CDR2-AC and set BPV. Rib Work 1. MIRU Nabors CDR2-AC rig using 2" coil tubing. NU 7-1/16" BOPS, test. 2. 2M-08A Sidetrack (A4 sand - South) a. Drill 2.80" high -side pilot hole through cement to 11,775' MD b. Caliper pilot hole c. Set top of whipstock at 11,745' MD d. Mill 2.80" window at 11,745' MD. e. Drill 3" bi-center lateral to TD of 16,000' MD. f. Run 2%" slotted liner with an aluminum billet from TD up to 12,100' MD. 2M-08AL1 Lateral (A4 sand - North) a. Kickoff of the aluminum billet at 12,100' MD. b. Drill 3" bi-center lateral to TD of 14,200' MD. c. Run 2%" slotted liner with an anchored billet from TD up to 12,400' MD. 4. 2M-08AL 1-01 Lateral (A3 sand -North) a. Kick off of the anchored billet at 12,400' MD. b. Drill 3" bi-center lateral to TD of 14,450'.MD. c. Run 2%" slotted liner with an aluminum billet from TD up to 11,900' MD. 5. 2M-08AL2 Lateral (A3 sand - South) a. Kickoff of the aluminum billet at 11,900' MD. b. Drill 3" bi-center lateral to TD of 14,150' MD. c. Run 2%" slotted liner with deployment sleeve from TD up to 11,600' MD. 6. Freeze protect, set BPV, ND BOPE, and RDMO Nabors CRD2-AC. Post -Rig Work 1. Pull BPV. 2. Obtain SBHP. 3. Install GLV's . 4. Return to production. Page 5 of 7 February 22, 2016 PTD Application: 2M-08A, 2M-0.. ,L1, 2M-08AL1-01 & 2M-08AL2 Pressure Deployment of BHA The planned bottom hole assemblies (BHAs) are too long to simply isolate by closing the double swab valves on the Christmas tree. MPD operations require the BHA to be lubricated under pressure using a system of double swab valves on the Christmas tree, double deployment rams, double check valves and double ball valves in the BHA, and a slick -line lubricator can be used. This pressure control equipment listed ensures there are always two barriers to reservoir pressure, both internal and external to the BHA, during the deployment process. During BHA deployment, the following steps are observed. — Initially the double swab valves on the tree are closed to isolate reservoir pressure. The lubricator is installed on the BOP riser with the BHA inside the lubricator. — Pressure is applied to the lubricator to equalize across the swab valves. The swab valves are opened and the BHA is lowered in place via slickline. — When the BHA is spaced out properly, the double deployment rams are closed on the BHA to isolate reservoir pressure via the annulus. A closed set of double ball valves and double check valves isolate reservoir pressure internal to the BHA. Slips on the double deployment rams prevent the BHA from moving when differential pressure is applied. The lubricator is removed once pressure is bled off above the deployment rams. — The coiled tubing is made up to the BHA with the double ball valves plus the double check valves in the closed position. Pressure is applied to the coiled tubing to equalize internal pressure and then the double ball valves are opened. The injector head is made up to the riser, annular pressure is equalized, and the deployment rams are opened. The BHA and coiled tubing are now ready to run in the hole. During BHA undeployment, the steps listed above are observed, only in reverse. Liner Running — The 2M-08A laterals will be displaced to an overbalancing fluid (12.0 ppg NaBr) prior to running liner. See "Drilling Fluids" section for more details. — While running 2%" slotted liner, a joint of 23/" non -slotted tubing will be standing by for emergency deployment. A floor valve is made up onto this joint ahead of time, and the rig crew conducts a deployment drill with this emergency joint on every slotted liner run. The 23/" rams will provide secondary well control while running 23/" liner. 14. Disposal of Drilling Mud and Cuttings (Requirements of 20 AAC 25.005(c)(14)) • No annular injection on this well. • All solid waste will be transported to the grind and inject facility at DS-4 Prudhoe Bay for disposal. • Incidental fluids generated from drilling operations will be injected in a Kuparuk Class II disposal well (1 R-18 or 1 B disposal facilities) or Prudhoe DS-4 if a Kuparuk facility is unavailable. • All wastes and waste fluids hauled from the pad must be properly documented and manifested. • Contact Kuparuk Environmental Coordinator for questions regarding waste classification. (670-4200). Page 6 of 7 February 22, 2016 PTD Application: 2M-08A, 21VI-0L -1, 2M-08AL1-01 & 2M-08AL2 15. Directional Plans for Intentionally Deviated Wells (Requirements of 20 AAC 25.050(b)) — The Applicant is the only affected owner. — Please see Attachment 1: Directional Plans — Magnetic and inclination surveys will be taken every 30 ft. No gyro will be run. — MWD directional, resistivity, and gamma ray will be run over the entire open hole section. — Distance to Nearest Property Line (measured to KPA boundary at closest point) Lateral Name Distance 2M-08A 14,294' 2M-08AL1 14, 325' 2M-08AL1-01 14,225' 2M-08AL2 14,300' — Distance to Nearest Well within Pool Lateral Name Distance Well 2M-08A 256' 2K-27 2M-08AL1 1,574' 2M-07 2M-08AL1-01 1,511' 2M-07 2M-08AL2 1,362' 2K-27 16. Attachments Attachment 1: Directional Plans for 2M-08A laterals Attachment 2: Current Well Schematic for 2M-08 Attachment 3: Proposed Well Schematic for 2M-08A laterals Page 7 of 7 February 22, 2016 ConocoPhillips ConocoPhillips (Alaska) Inc. -Kup2 Kuparuk River Unit Kuparuk 2M Pad 2M-08 2M-08AL1 Plan: 2M-08AL1_wp03 Standard Planning Report 26 January, 2016 Fe ppl_- ja as BAKER HUGHES ConocoPhillips Database: EDM Alaska NSK Sandbox Company: ConocoPhillips (Alaska) Inc. -Kup2 Project: Kuparuk River Unit Site: Kuparuk 2M Pad Well: 2M-08 Wellbore: 2M-08AL1 Design: 2M-08AL 1 _wp03 ConocoPhillips Planning Report Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Well 2M-08 Mean Sea Level 2M-08 @ 147.00usft (2M-08) True Minimum Curvature Project Kuparuk River Unit, North Slope Alaska, United States Map System: US State Plane 1927 (Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927 (NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Using geodetic scale factor Site Kuparuk 2M Pad Site Position: Northing: From: Map Easting: Position Uncertainty: 0.00 usft Slot Radius: Well 2M-08 Well Position +Nl-S +E/-W Position Uncertainty 0.00 usft Northing: 0.00 usft Easting: 0.00 usft Wellhead Elevation: 5,948,985+89usft Latitude: 487,859.45usft Longitude: 0.000in Grid Convergence: 5,948,985.84 usft Latitude: 487,949.23 usft Longitude: usft Ground Level: FG.I BAKER HUGHES 700 16' 18.578 N 150° 5' 53.484 W -0.09 ° 70° 16' 18.579 N 150° 5' 50.870 W 0.00 usft Wellbore 2M-08AL1 Magnetics Model Name Sample Date Declination Dip Angle Field Strength (°) (I (nT) BGGM2015 5/1/2016 18.26 80.90 57,483 Design 2M-08A1-1_wp03 Audit Notes: Version: Phase: PLAN Tie On Depth: 12,100.00 Vertical Section: Depth From (TVD) +N/-S +E/-W Direction (usft) (usft) (usft) (I - _ - - 0.00 - 0.00 0.00 - 340.00 Plan Sections Measured TVD Below Dogleg Build Turn Depth Inclination Azimuth System +N/-S +E/-W Rate Rate Rate TFO (usft) (°) (°) (usft) (usft) (usft) (°1100ft) (°1100ft) (°/100ft) (°) 12,100.00 93.90 117.76 6,049.78 -9,591.04 -738.62 0.00 0.00 0.00 0.00 12,170.00 98.54 86.40 6,042.01 -9,605.50 -671.48 45.00 6.63 -44.79 280.00 12,240.00 94.68 54.92 6,033.74 -9,582.70 -606.75 45.00 -5.52 -44.98 265.00 12,310.00 91.39 23.54 6,029.94 -9,529.22 -563.12 45.00 -4.71 -44.82 265.00 12,410.00 90.77 16.57 6,028.06 -9,435.36 -528.86 7.00 -0.62 -6.97 265.00 13,110.00 90.50 327.57 6,019.80 -8,763.05 -622.54 7.00 -0.04 -7.00 270.00 13,310.00 92.90 341.37 6,013+84 -8,583+11 -708.51 7.00 1.20 6.90 80.00 13,900.00 92.18 300.03 5,986.54 -8,136.91 -1,073.81 7.00 -0.12 -7.01 270.00 14,200.00 92.03 321.04 5,975.41 -7,943.15 -1,300.37 7.00 -0.05 7.00 90.00 Target 112612016 9:16:31AM Page 2 COMPASS 5000.1 Build 74 ConocoPhillips rZAas ConocoPhillips Planning Report BAKER HUGHES Database: EDM Alaska NSK Sandbox Company: ConocoPhillips (Alaska) Inc. -Kup2 Project: Kuparuk River Unit Site: Kuparuk 2M Pad Well: 2M-08 Wellbore: 2M-08AL1 Design: 2M-08AL1 _wp03 Planned Survey Measured TVD Below Depth Inclination Azimuth System (usft) (°) (°) (usft) 12,100,00 93.90 117.76 6,049.78 TIP/KOP 12,170.00 98.54 86.40 6,042.01 Start 45 dIs 12,200.00 97.14 72.85 6,037.89 12,240.00 94.68 54.92 6,033.74 3 12,300.00 91.91 28.01 6,030.23 12,310.00 91.39 23.54 6,029.94 End 45 dls, Start 7 dls 12,400.00 90.83 17.27 6,028.20 12,410.00 90.77 16.57 6.028.06 5 12,500.00 90.76 10.27 6,026.86 12,600.00 90.75 3.27 6,025.54 12,700.00 90.72 356.27 6,024.26 12,800.00 90.68 349.27 6,023.04 12,900.00 90.63 342.27 6,021.89 13,000.00 90.58 335.27 6,020.83 13,100.00 90.51 328.27 6,019.89 13,110.00 90.50 327.57 6.019.80 6 13,200.00 91.59 333.77 6,018.15 13,300.00 92.78 340.68 6,014.33 13,310.00 92.90 341.37 6,013.84 7 13,400.00 92.88 335.06 6,009.30 13,500.00 92.82 328.05 6,004.32 13,600.00 92.72 321.04 5,999.49 13,700.00 92.57 314.04 5,994.87 13,800.00 92.39 307.03 5,990.53 13.900.00 92.18 300.03 5,986.54 8 14,000.00 92.16 307.04 5.982.76 14,100.00 92.11 314.04 5.979.03 14,200.00 92.03 321.04 5,975.41 Planned TD at 14200.00 Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Well 2M-08 Mean Sea Level 2M-08 @ 147.00usft (2M-08) True Minimum Curvature Vertical Dogleg Toolface Map Map +N/-S +E/-W Section Rate Azimuth Northing Easting (usft) (usft) (usft) (°/100ft) (°) (usft) (usft) -9,591.04 -738.62 -8,760.01 0.00 0.00 5,939,396.95 487,195.33 -9,605.50 -671.48 -8,796.56 45.00 -80.00 5,939,382.39 487,262A4 -9,600.16 -642.32 -8,801.51 45.00 -95.00 5,939.387.68 487,291.61 -9,582.70 -606.75 -8,797.27 45.00 -96.86 5,939,405.08 487,327.20 -9,538.22 -567.47 -8,768.91 45.00 -95.00 5,939,449.49 487,366.55 -9,529.22 -563.12 -8,761.94 45.00 -96.57 5,939,458.48 487,370.91 -9,444.93 -531.77 -8,693.45 7.00 -95.00 5,939,542.72 487,402.40 -9.435.36 -528.86 -8,685.46 7.00 -95.12 5,939,552.28 487,405.32 -9,347.87 -507.98 -8,610.39 7.00 -90.00 5,939,639.73 487,426.33 -9,248.64 -496.21 -8,521.16 7.00 -90.08 5,939,738.93 487,438.27 -9,148.71 -496.61 -8,427.12 7.00 -90.18 5,939,838.85 487,438.02 -9,049.57 -509.19 -8,329.66 7.00 -90.27 5,939,938.00 487,425.60 -8,952.71 -533.76 -8,230.24 7.00 -90.35 5,940,034.89 487,401.19 -8,859.56 -569.96 -8,130.33 7.00 -90.43 5,940,128.09 487,365.15 -8,771.52 -617.23 -8,031.43 7.00 -90.51 5,940,216.20 487,318.02 -8.763.05 -622.54 -8,021.65 7.00 -90.57 5,940,224.68 487,312.72 -8,684.64 -666.60 -7,932.90 7.00 80.00 5,940,303.15 487,268.79 -8,592.56 -705.26 -7,833.15 7.00 80.11 5,940,395.28 487,230.28 -8,583.11 -708.51 -7,823.16 7.00 80.38 5,940,404.73 487,227.05 -8,499.69 -741.85 -7,733.37 7.00 -90.00 5,940,488.20 487,193.84 -8,411.93 -789.40 -7,634.64 7.00 -90.32 5,940,576.03 487.146.44 -8,330.61 -847.30 -7,538.42 7.00 -90.67 5,940.657.42 487,088.68 -8,256.96 -914.69 -7,446.17 7.00 -91.01 5,940,731.18 487,021.41 -8,192.07 -990.57 -7,359.24 7.00 -91.33 5,940,796.18 486,945.64 -8,136.91 -1,073.81 -7,278.93 7.00 -91.63 5,940,851.47 486,862.50 -8,081.74-1,157.06-7,198.62 7.00 90.00 5,940,906.77 486.779.35 -8,016.83-1,232.95-7,111.66 7.00 90.27 5,940,971.79 486,703.57 -7.943.15-1,300.37-7,019.37 7.00 90.53 5,941,045.58 486,636.27 112612016 9:16:31AM Page 3 COMPASS 5000.1 Build 74 ConocoPhillips rigs ConocoPhillips Planning Report BAKER HUGHES Database: EDM Alaska NSK Sandbox Local Co-ordinate Reference: Well 2M-08 Company: ConocoPhillips (Alaska) Inc. -Kup2 TVD Reference: Mean Sea Level Project: Kuparuk River Unit MD Reference: 2M-08 @ 147.00usft (2M-08) Site: Kuparuk 2M Pad North Reference: True Well: 2M-08 Survey Calculation Method: Minimum Curvature Wellbore: 2M-08AL1 Design: 2M-08AL1_wp03 Targets Target Name hit/miss target Dip Angle Dip Dir. TVD +N/-S +E/-W Northing Easting Shape (1) (1) (usft) (usft) (usft) (usft) (usft) Latitude Longitude 2M-08AL1 T03 0.00 0.00 5,978.00 -6,427.01 1,138,897.22 5,940,736.00 1,626,721.00 70° 1' 14.527 N 140' 58' 6.582 W plan misses target center by 1139396.92usft at 12600.00usft MD (6025.54 TVD,-9248.64 N,-496.21 E) Point 2M-08AL1_T04 0.00 0.00 5,975.00 -6,368.091,138,844.12 5,940,795.00 1,626,668.00 700 1' 15.177 N 140° 58' 7.838 W plan misses target center by 1139343.97usft at 12600.00usft MD (6025.54 TVD,-9248.64 N,-496.21 E) Point 2M-08AL1 Polygon 0.00 0.00 0.00 -6,300.601,138,520.98 5,940,863.00 1,626,345.00 70' 1' 16.306 N 140' 58' 16.725 W plan misses target center by 1139036.94usft at 12600.00usft MD (6025.54 TVD,-9248.64 N,-496.21 E) Polygon Point 1 0.00 0.00 0.00 5,940,863.00 1,626,345.00 Point 0.00 247.20 710.66 5,941,109.04 1,627,055.98 Point 0.00 -558.68 1,439.07 5,940,302.07 1,627,783.03 Point 0.00 -1,875.89 1,392.24 5,938,985.07 1,627,734.10 Points 0.00 -2,004.93 773.39 5,938,857.03 1,627,115.10 Point 0.00 -1,416.53 373.38 5,939,446.02 1,626,716.07 Point 0.00 0.00 0.00 5,940,863.00 1,626,345.00 2M-08A_Fault2 0.00 0.00 0.00 -10,487.351,140,194.85 5,936,674.00 1,628,012.00 70° 0' 33.194 N 140° 57' 47.155 W plan misses target center by 1140707.65usft at 12600.00usft MD (6025.54 TVD,-9248.64 N,-496.21 E) Rectangle (sides W540.00 1-11.00 D0.00) 2M-08AL1_Faultl 0.00 0.00 0.00 -6,924.251,139,403.07 5,940,238.00 1,627,226.00 70° 1' 8.956 N 1400 57' 54.350 W plan misses target center by 1139917.57usft at 12600.00usft MD (6025.54 TVD,-9248.64 N,-496.21 E) Rectangle (sides W1,190.00 H1.00 D0.00) 2M-08AL1 T02 0.00 0.00 6,024.00 -7,572.931,139,648.13 5,939,589.00 1,627,470.00 70' V 2.297 N 140' 57' 50.175 W plan misses target center by 1140145.57usft at 12600.00usft MD (6025.54 TVD,-9248.64 N,-496.21 E) Point 2M-08AL2 Polygon 0.00 0.00 0.00 -7,717.151.138,894.29 5,939,446.00 1,626,716.00 70' V 2.002 N 140' 58' 12.198 W plan misses target center by 1139407.46usft at 12600.00usft MD (6025.54 TVD,-9248.64 N,-496.21 E) Polygon Point 1 0.00 0.00 0.00 5,939,446.00 1,626,716.00 Point 0.00 142.72 1,033.87 5,939,587.05 1,627,749.99 Point 0.00 -2,879.90 234.78 5,936,566.02 1,626,946.15 Point 0.00 -2,657.89-378.65 5,936,788.99 1,626,333.13 Point 0.00 0.00 0.00 5,939,446.00 1,626,716.00 2M-08A Polygon 0.00 0.00 0.00 -7,717.151,138,894.29 5,939,446.00 1,626,716.00 70' V 2.002 N 140' 58' 12.198 W plan misses target center by 1139407.46usft at 12600.00usft MD (6025.54 TVD,-9248.64 N. -496.21 E) Polygon Point 1 0.00 0.00 0.00 5,939,446.00 1,626,716.00 Point 0.00 142.72 1,033.87 5,939,587.05 1,627,749.99 Point 0.00 -389.52 1,526.80 5,939,054.07 1,628,242.02 Point 0.00 -4,696.94 1,533.92 5,934,747.08 1,628,242.24 Point 0.00 -4,637.84 987.76 5,934,807.05 1,627,696.23 Point 0.00 -1,761.53 997.01 5,937,683.05 1,627,710.09 Point 0.00 0.00 0.00 5,939,446.00 1,626,716.00 2M-08AL1_T01 0.00 0.00 6,041.00 -8,028.241,139,483.84 5,939,134.00 1,627,305.00 70' 0' 58.117 N 1400 57' 56.792 W plan misses target center by 1139980.70usft at 12600.00usft MD (6025.54 TVD,-9248.64 N,-496.21 E) Point 2M-08AL2_Faultl 0.00 0.00 0.00 -8,603.781,139,181.74 5,938,559.00 1,627,002.00 70' 0' 52.971 N 140° 58' 7.838 W plan misses target center by 1139694.05usft at 12600.00usft MD (6025.54 TVD,-9248.64 N,-496.21 E) Rectangle (sides W870.00 1-11.00 D0.00) 2M-08AL2_Fault2 0.00 0.00 0.00 -9,856.271,138,954.72 5,937,307.00 1,626,773.00 70' 0' 41.141 N 140° 58' 19.650 W plan misses target center by 1139467.02usft at 12600.00usft MD (6025.54 TVD,-9248.64 N,-496.21 E) Rectangle sides W720.00 1-11.00 D0.00 1/26/2016 9:16:31AM Page 4 COMPASS 5000.1 Build 74 ,0" ConocoPhillips RAN ConocoPhillips Planning Report BAKER HUGHES Database: EDM Alaska NSK Sandbox Local Co-ordinate Reference: Well 2M-08 Company: ConocoPhillips (Alaska) Inc. -Kup2 TVD Reference: Mean Sea Level Project: Kuparuk River Unit MD Reference: 2M-08 @ 147.00usft (2M-08) Site: Kuparuk 2M Pad North Reference: True Well: 2M-08 Survey Calculation Method: Minimum Curvature Wellbore: 2M-08AL1 Design: 2M-08AL 1 _wp03 2M-08A_Fault1 0.00 0.00 0.00 -8,354.671,139,859.41 5,938,807.00 1,627,680.00 70' 0' 54.396 N 140' 57' 47.530 W plan misses target center by 1140371.88usft at 12600.00usft MD (6025.54 TVD,-9248.64 N,-496.21 E) - Rectangle (sides W1,130.00 H0.00 D0.00) Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (usft) (usft) Name (in) (in) 14,200.00 5,975.41 2 3/8" 2.375 3.000 Plan Annotations Measured Vertical Local Coordinates Depth Depth +N/-S +E/-W (usft) (usft) (usft) (usft) Comment 12,100.00 6,049.78 -9,591.04 -738.62 TIP/KOP 12,170.00 6,042.01 -9,605.50 -671.48 Start 45 dls 12,240.00 6,033.74 -9,582.70 -606.75 3 12,310.00 6,029.94 -9,529.22 -563.12 End 45 dls, Start 7 dls 12,410.00 6,028.06 -9,435.36 -528.86 5 13,110.00 6,019.80 -8,763.05 -622.54 6 13,310.00 6,013.84 -8,583.11 -708.51 7 13,900.00 5,986.54 -8,136.91 -1,073.81 8 14,200.00 5,975.41 -7,94115 -1,300.37 Planned TD at 14200.00 1/26/2016 9:16:31AM Page 5 COMPASS 5000.1 Build 74 ConocoPhillips ConocoPhillips (Alaska) Inc. -Kup2 Kuparuk River Unit Kuparuk 2M Pad 2M-08 2M-08AL1 2M-08AL1_wp03 Travelling Cylinder Report 25 January, 2016 FfAd a I BAKER HUGHES ConocoPhillips Company: ConocoPhillips (Alaska) Inc. -Kup2 Project: Kuparuk River Unit Reference Site: Kuparuk 2M Pad Site Error: 0.00 usft Reference Well: 2M-08 Well Error 0.00 usft Reference Wellbore 2M-08AL1 Reference Design: 2M-08AL1_wp03 Baker Hughes INTEQ Travelling Cylinder Report Local Co-ordinate Reference TVD Reference: MD Reference: North Reference: Survey Calculation Method: Output errors are at Database: Offset TVD Reference: Well 2M-08 2M-08 @ 147.00usft (2M-08) 2M-08 @ 147.00usft (2M-08) True Minimum Curvature 1.00 sigma OAKEDMP2 Offset Datum Reference 2M-08AL1_wp03 -ilter type: GLOBAL FILTER APPLIED: All wellpaths within 200'+ 100/1000 of reference nterpolation Method: MD Interval 25.00usft Error Model: ISCWSA depth Range: 12,100.00 to 14,200.00usft Scan Method: Tray. Cylinder North Results Limited by: Maximum center -center distance of 1,605.30 usft Error Surface: Elliptical Conic NaI BAKER HUGHES Survey Tool Program Date 1/25/2016 From To (usft) (usft) Survey (Wellbore) Tool Name Description 151.90 11,740.89 2M-08 (2M-08) GCT-MS Schlumberger GCT multishot 11,740.89 12,100.00 2M-08A_wp05 (2M-08A) MWD MWD - Standard 12,100.00 14,200.00 2M-08AL1_wp03 (2M-08AL1) MWD MWD - Standard Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (usft) (usft) Name 14,200.00 6.122A1 2 3/8" 2-3/8 3 Summary Reference Offset Centre to No -Go Allowable Measured Measured Centre Distance Deviation Warning Site Name Depth Depth Distance (usft) from Plan Offset Well - Wellbore - Design (usft) (usft) (usft) (usft) Kuparuk 2M Pad 2M-08 - 2M-08 - 2M-08 12,557.21 11,650.00 360.04 16.03 351.38 Pass - Major Risk 2M-08 - 2M-08A - 2M-08A_wp05 12,100.00 12,100.00 0.00 0.45 -0.22 FAI L - Minor 1 /10 2M-08 - 2M-08AL1-01 - 2M-08AL1-01_wp02 12,424.99 12,425.00 0.52 0.48 0.05 Pass - Minor 1/10 2M-08 - 2M-08AL2 - 2M-08AL2_wp04 12,557.21 11,650.00 360.04 7.73 359.71 Pass - Minor 1/10 2M-09 - 2M-09 - 2M-09 Out of range 2M-14 - 2M-14 - 2M-14 Out of range Offset Design Kuparuk 2M Pad - 2M-08 - 2M-08 - 2M-08 Offset Site Error: 0.00 usft Survey Program: 152-GCT-MS Rule Assigned: Major Risk Offset Well Error: 0.00 usft Reference Offset Semi Major Axis Measured Vertical Measured vertical Reference Offset Toolface + Offset Wellbore Centre Casing - Centre to No Go Allowable Warning Depth Depth Depth Depth Azimuth +N/-s +E/-W Hole Size Centre Distance Deviation (usft) (usft) (usft) (usft) (usft) (usft) (°I (usft) (usft) ('7 (usft) (usft) (usft) 12,557.21 6,173.10 11,650.00 6,099.35 0.35 0.00 -71.91 -9,253.79 -850.17 2-11/16 360.04 16.03 351.38 Pass - Major Risk, CC, ES, SF 12,586.37 6,172.72 11,625.00 6,080.45 0.36 0.00 -71.10 -9,237+50 -848.59 2-11116 364.24 16.36 355.32 Pass - Major Risk 12,615.49 6,172.34 11,600.00 6,061.56 0.37 0.00 -70.33 -9,221+20 -846.98 2-11/16 368.75 16.71 359.56 Pass - Major Risk 12,644.72 6,171.97 11,575.00 6,042.80 0.38 0.00 -69.63 -9,204+77 -845.28 2-11/16 373.45 17.06 364.00 Pass - Major Risk 12,674.08 6,171.59 11,550.00 6,024.23 0.40 0.00 -68.99 -9,188A3 -843.47 2-11/16 378.28 17.41 368.57 Pass - Major Risk 12,703.36 6,171.22 11,525.00 6,005.78 0.42 0.00 -68.40 -9,171.35 -841.63 2-11/16 383.31 17.81 373.38 Pass - Major Risk 12,732.38 6,170.86 11,500+00 5,987.41 0.44 0.00 -67.82 -9,154.51 -839.76 2-11/16 388.56 18.22 378.33 Pass- Major Risk 12,761.39 6,170.50 11,474.99 5,969.27 0.47 0.00 -67.31 -9,137.40 -837.88 2-11/16 393.93 18.62 383.35 Pass- Major Risk 12,790.28 6,170.16 11,450.00 5,951.39 0.49 0.00 -66S4 -9,120.04 -835.99 2-11/16 399.39 19.03 388.49 Pass - Major Risk 12,818.72 6,169.82 11,425.00 5,933.57 0.51 0.00 -66.37 -9,102.60 -834.12 2-11/16 405.09 19.47 393.89 Pass - Major Risk 12,846.73 6,169.49 11,400.00 5,915.86 0.54 0.00 -65.90 -9,085.05 -832.34 2-11/16 411.05 19.91 399.57 Pass - Major Risk 12,874.46 6,169A8 11,375.00 5,898.34 0.55 0.00 -65.47 -9,067.28 -830.68 2-11/16 417.23 20.36 405.52 Pass - Major Risk CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min ellipse separation 1/25/2016 3:31:50PM Page 2 COMPASS 5000.1 Build 74 N wig_ `bd_o 1- 47 A O mC0 J lCJ O 0 N � 'a o r N N N N � p o a F N Q � CCJ � c a m a t6 UFO V CO�OM1� y 0 O N O V C O O) M W CoOI--Cf)-MCO (T dZ -O `1 co C)mco aDN Ni�� I� I- I-- I.- c O O a N Cl OCp c?m c?aD rr f� 00 r=-� N O O O o 0 0 0 0 0 O J 00 U p O p p 0 0 0 0 0 O O �fJ ll) CA O O C7 6 LL a0 O CO tD P- O O) ~ N CD N N N N N N [TO O O O Cl O O O Cl N O O O O O p p p 0 I� OO�C� ��t•�n �NoO u)� CO V I� 1� W Lq M M W p I CO M O N a0 M O cn CN 'r, + M I O O N N O I. O m J LV u CO Lo Q oo � O C O I N M O O) oo :z cV O CP m M (O M LL + mcpo-oc,4v�ouivrn Q T Cn 9) O) O)Cn ap CO 1� J (n a0��v tDOv V.- W (n lip li p OaO CO L� 01� 0 (m O O C m) Cn C C b -! E� > V%r M N N O p 0 0 0 ` Cb z� q�t Q r R O) C O un C n M O O_ d) Lc) O r � p N N O N M M M M ?�O MCY)�r-O6 NNN O O)O)C7)O) pmOOO) W O + 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a00000000 N N N N N M M C2 �O O Uc.,NMp tiCU (A ZO u) + (uyUsn S9) gidoa poilaon onij t TRANSMITTAL LETTER CHECKLIST WELL NAME: KR m - O q-/ l PTD: e(o — 03 3 Development _ Service Exploratory _ Stratigraphic Test _ Non -Conventional FIELD: X'U' �� / POOL: ILa 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. � 16o -03Z , API No. 50- 1-c-3 (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 sample 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 KUPARUK RIVER, KUPARUK RIV OIL - 490100 PTD#:2160330 Company CONOCOPHILLIPS ALASKA INC Initial Class/Type Well Name: KUPARUK RIV UNIT 2M-08AL1 Program DEV Well bore seg DEV / PEND GeoArea 890 Unit 11160 On/Off Shore On Annular Disposal Administration 17 Nonconven. gas conforms to AS31.05.0300.1.A),0.2.A-D) NA 1 Permit fee attached NA 2 Lease number appropriate Yes ADL0025586, Surf Loc; ADL0025589, Top Prod Intery & TD. 3 Unique well name and number Yes KRU 2M-08AL1 4 Well located in a defined pool Yes KUPARUK RIVER, KUPARUK RIV OIL - 490100, governed by Conservation Order No. 432D 5 Well located proper distance from drilling unit boundary Yes CO 432D contains no spacing restrictions with respect to drilling unit boundaries. 6 Well located proper distance from other wells Yes CO 432D has no interwell spacing restrictions. 7 Sufficient acreage available in drilling unit Yes 8 If deviated, is wellbore plat included Yes 9 Operator only affected party Yes Wellbore will be more than 500' from an externa; property line where ownership or landownership changes. 10 Operator has appropriate bond in force Yes Appr Date 11 Permit can be issued without conservation order Yes 12 Permit can be issued without administrative approval Yes PKB 2/25/2016 13 Can permit be approved before 15-day wait Yes 14 Well located within area and strata authorized by Injection Order # (put IO# in comments) (For NA 15 All wells within 1/4 mile area of review identified (For service well only) NA 16 Pre -produced injector: duration of pre -production less than 3 months (For service well only) NA 18 Conductor string provided NA Conductor set in KRU 2M-08 Engineering 19 Surface casing protects all known USDWs NA Surface casing set in KRU 2M-08 20 CMT vol adequate to circulate on conductor & surf csg NA Surface casing set and fully cemented 21 CMT vol adequate to tie-in long string to surf csg NA 22 CMT will cover all known productive horizons No Productive interval will be completed with uncemented slotted liner 23 Casing designs adequate for C, T, B & permafrost Yes 24 Adequate tankage or reserve pit Yes Rig has steel tanks; all waste to approved disposal wells 25 If a re -drill, has a 10-403 for abandonment been approved NA 26 Adequate wellbore separation proposed Yes Anti -collision analysis complete; no major risk failures 27 If diverter required, does it meet regulations NA Appr Date 28 Drilling fluid program schematic & equip list adequate Yes Max formation pres is 4658 psig(14.4 ppg EMW); will drill w/ 8.6 ppg EMW & maintain overbal w/ MPD VTL 3/1/2016 29 BOPEs, do they meet regulation Yes 30 BOPE press rating appropriate; test to (put psig in comments) Yes MPSP is 4041 psig; will test BOPs to 4500 spig 31 Choke manifold complies w/API RP-53 (May 84) Yes 32 Work will occur without operation shutdown Yes 33 Is presence of 112S gas probable Yes 112S measures required 34 Mechanical condition of wells within AOR verified (For service well only) NA 35 Permit can be issued w/o hydrogen sulfide measures No Wells on 2M-Pad are H2S-bearing. 112S measures required. Geology 36 Data presented on potential overpressure zones Yes Max. potential reservoir pressure is 14.4 ppg EMW; will be drilled using 8.6 ppg mud & MPD technique. Appr Date 37 Seismic analysis of shallow gas zones NA PKB 2/25/2016 38 Seabed condition survey (if off -shore) NA 39 Contact name/phone for weekly progress reports [exploratory only] NA Onshore development lateral to be drilled. Geologic Engineering Public Commissioner: Date: Commissioner: Date Commissioner Date s�