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Home My WebLink About216-097Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Wednesday, September 5, 2018 3:14 PM To: 'Monty Myers' Cc: Davies, Stephen F (DOA); Schwartz, Guy L (DOA) Subject: TBU K-26 RD2, PTD 216-097, Permit Expired Hello Monty, The permit to drill 216-097, TBU K-26 RD2, issued to Hilcorp Alaska LLC, has expired under Regulation 20 AAC 25.005 The PTD will be marked expired in the AOGCC database. If you have any questions, please contact me. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave, Anchorage, AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. THE STATE 01ALASKA GOVERNOR BILL WALKER Monty Myers Drilling Engineer Hilcorp Alaska, LLC 3 800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 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: McArthur River Field, Hemlock Oil Pool, TBU K-26RD2 Hilcorp Alaska, LLC Permit to Drill Number: 216-097 Surface Location: 715' FSL, 132' FEL, SEC. 17, T9N, R13W, SM, AK Bottomhole Location: 123' FNL, 719' FEL, SEC. 17, T9N, ROW, SM, AK Dear Mr. Myers: Enclosed is the approved application for permit to re -drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or an AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Cathy P. oerster Chair 5-' DATED this 3day of August, 2016. H t t; L 1 V t LJ STATE OF ALASKA AL, —KA OIL AND GAS CONSERVATION COMMI__,ON PERMIT TO DRILL 20 AAC 25.005 AUG 0 4 2016 1 a. Type of Work: 1 h. Proposed Well Class: Exploratory -Gas ❑ Service - WAG ❑ Service - Disp ❑ 1 c. Specify if well is proposed for: Drill ❑ Lateral ❑ Stratigraphic Test ❑ Development - Oil ❑✓ - Service - Winj ❑ Single Zone El - Coalbed Gas ❑ Gas Hydrates ❑ Redrill ❑✓ * Reentry ❑ Exploratory - Oil ❑ Development - Gas ❑ Service - Supply ❑ Multiple Zone ❑ Geothermal ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket ❑ . Single Well ❑ 11. Well Name and Number: Hilcorp Alaska, LLC Bond No. 022035244 TbkA K-26RD2 3. Address: 6. Proposed Depth: 12. Field/Pool(s): 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503 MD: 13,000' - TVD: 9,849' McArthur River Field Hemlock Oil Pool 4a. Location of Well (Governmental Section): 7. Property Designation (Lease Number): Surface: 715' FSL, 132' FEL, Sec 17, T9N, R13W, SM, AK ADLO17594 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 1623' FNL, 2149' FEL, Sec 17, T9N, R13W, SM, AK N/A 9/5/2016 9. Acres in Propertv: 14. Distance to Nearest Propertv: Total Depth: 123' FNL, 719' FEL, Sec 17, T9N, R13W, SM, AK 4956 7,631' 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above MSL (ft): 122' . 15. Distance to Nearest Well Open Surface: x-213764 y- 2511789 - Zone-4 GL Elevation above MSL (ft): 73' to Same Pool: A-27RD2 98' 16. Deviated wells: Kickoff depth: 6,000 feet 17. Maximum Potential Pressures in psig (see 20 AAC 25.035) IZ-_ Maximum Hole Angle: 80 degrees Down hole: A M r :, Surface: 18. Casing Program: Specifications Top - Setting epth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD TVD (including stage data) 8-1/2" 7" 29# L-80 DWC/C 7,200' 5,800' 5,185' 9,849' 501 ft3 of 15.3 ppg MDO' 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): 11,078' 9,967' N/A 10,707' 9,600' N/A Casing Length Size Cement Volume MD TVD Conductor/Structural 350' 24" Driven 350' 349' Surface 2,938' 13-3/8" 2050 sx 2,938' 2,716' Intermediate Production 8,672' 9-5/8" 2700 sx 8,672' 7,712' Liner 2,632' 7" 670 sx 11,031' 9,923' Perforation Depth MD (ft): 10,105' - 10,744' Perforation Depth TVD (ft): 8,999' - 9,637' 20. Attachments: Property Plat ❑✓ BOP Sketch ❑✓ Drilling Program Q Time v. Depth Plot Q Shallow Hazard Analysis❑ Diverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program ❑✓ 20 AAC 25.050 requirements0 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Contact Email mmyers@hilcgD.com Printed Name Monty Myers Title Drilling Engineer Signatur Phone 777-8431 Date 8/4/2016 Commission Use Only Permit to Drill API Number: _ P Permit Approval See cover letter for other Number: ,/ 5 0 - 373" G6v� -6 C Date: , requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: Other. x �5 p�j PS` r/56 10 / e Samples req'd: Yes ❑ NoQ Mud log req'd: Yes ❑ No❑V H2S measures: Yes V No ❑/ Directional svy req'd: Yes No ❑ /4 11C_` Spacing exception req'd: Yes ❑ No Q Inclination -only svy req'd: Yes ❑ No _ q Post initial injection MIT req'd: Yes ❑ No ❑ �'. ��i�t'+,_� APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: 6 Submit Form and Form 10-401 (Revised 11/2015) s d o 4 Lnths froln the date of approval (20 AAC 25.005(g)),Attachments in Duplicate Monty Myers Drilling Engineer Hilcorp EneW Company 8/4/2016 Commissioner Alaska Oil & Gas Conservation Commission 333 W. 71h Avenue Anchorage, Alaska 99501 Re: K-26RD2 Dear Commissioner, Hilcorp Alaska, LLC P.O. Box 244027 Anchorage, AK 99524-4027 Tel 907 777 8431 Email mmyers@hilcorp.com �1UG 0 4 2016 AOGGG K-26RD2 is an oil production well planned to be re -drilled in a North-easterly direction from the existing K-26RD utilizing the existing casing program down to 6 0' MD / 5361' TVD. PsA k-z4 At 6000' MD the parent ellbore will be sidetracked and new wellbore drilled penetrating several Hemlock targets./ A 7000' x 8-1/2" open hole section is planned. A 7" 29# L-80 DWC/C prod liner will be run, cemented, and perforated based on data obtained while drilling the interval. The well will be completed with a 3-1/2" ESP completion. Drilling operations are expected to commence approximately September 5th, 2016. If you have any questions, please don't hesitate to contact myself at 777-8431 or Paul Mazzolini at 777-8369. Sincerely, Monty Myers Drilling Engineer Hilcorp Alaska, LLC Page 1 of i Hilcorp Alaska, LLC K-26RD2 Drilling Program McArthur River ro d by: M My Revision 0 July 19, 2016 K-26RD2 Drilling Procedure Rev 0 Ililcorp ;Ua..-ka, HA: Contents 1.0 Well Summary.................................................................................................................................2 2.0 Management of Change Information............................................................................................3 3.0 Tubular Program............................................................................................................................4 4.0 Drill Pipe Information....................................................................................................................4 5.0 Internal Reporting Requirements..................................................................................................5 6.0 Planned Wellbore Schematic..........................................................................................................6 7.0 Drilling Summary............................................................................................................................7 8.0 Mandatory Regulatory Compliance / Notifications.....................................................................8 9.0 RIU and Preparatory Work.........................................................................................................10 10.0 BOP N/U and Test.........................................................................................................................11 11.0 Mud Program and Density Selection Criteria............................................................................12 12.0 Whipstock Running Procedure....................................................................................................13 13.0 Whipstock Setting Procedure.......................................................................................................16 14.0 Drill 8-1/2" Hole Section...............................................................................................................19 15.0 Run 7" Production Liner..............................................................................................................22 16.0 Cement 7" Production Liner........................................................................................................25 17.0 Wellbore Clean Up & Displacement............................................................................................29 18.0 Run Completion Assembly...........................................................................................................30 19.0 RD...................................................................................................................................................30 20.0 BOP Schematic..............................................................................................................................31 21.0 Wellhead Schematic......................................................................................................................32 22.0 Days vs Depth................................................................................................................................33 23.0 Geo-Prog........................................................................................................................................34 24.0 Anticipated Drilling Hazards.......................................................................................................35 25.0 Rig Layout......................................................................................................................................36 26.0 FIT Procedure...............................................................................................................................37 27.0 Choke Manifold Schematic..........................................................................................................38 28.0 Fluid Flow Diagrams.....................................................................................................................39 29.0 Offset MW vs. Depth TVD...........................................................................................................42 30.0 Casing Design Information...........................................................................................................43 31.0 8-1/2" Hole Section MASP............................................................................................................44 32.0 Plot (NAD 27) (Governmental Sections).....................................................................................45 33.0 Slot Diagram (As Built) (NAD 27)...............................................................................................46 34.0 Directional Program(wp03).........................................................................................................48 K-26RD2 Drilling Procedure Rev 0 1.0 Well Summary Well K-26RD2 Pad & Old Well Designation Sidetrack of existing well K-26RD (PTD#195-083) Planned Completion Type 7" 26# L-80 Liner, 3-1/2" Tubing w/ ESP Target Reservoir(s) Hemlock Producer H1-H3 Planned Well TD, MD / TVD 13000' MD / 9849' TVD PBTD, MD / TVD 12900' MD / 9832' TVD Surface Location (Governmental) 715' FSL, 132' FEL, Sec 17, T9N, R13W, SM, AK Surface Location (NAD 27) X=213764.55, Y=2511789.76 Surface Location (NAD 83) Top of Productive Horizon (Governmental) 1623' FNL, 2149' FEL, Sec 17, T9N, R13W, SM, AK TPH Location (NAD 27) X=211814.06, Y=2514780.02 TPH Location (NAD 83) BHL (Governmental) 123' FNL, 719' FEL, Sec 17, T9N, R13W, SM, AK BHL (NAD 27) X=213278.13, Y=2516244.96 BHL (NAD 83) AFE Number 1612175D AFE Drilling Days AFE Drilling Amount $5.321 MM Work String 4-1/2" 16.6# X-95 XH (From Kuuk ik) RKB — AMSL 122' MSL to ML 73' BOP Equipment 13-5/8" 5M H dril "GK" Annular BOP 13-5/8" 5M Cameron Type U Double Ram 13-5/8" 5M Cameron Type U Single Ram Page 2 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 I1i1v-10 .%IaAa, LIA: 2.0 Management of Change Information Hilcorp Alaska, LLC Hilcorp FnC C"PMr Changes to Approved Permit to Drill Date: July 19, 2016 Subject Changes to Approved Permit to Drill for K-261RD2 File #: K-26RD2 Drilling Program Any modificationsto K-26RD2 Drilling Program will be documented and approved below. Changesto an approved APD will be communicated and approved by the AOGCC prior to continuing forward with work. Sec Page Date Procedure Change Approved Approved By By Approval: Drilling Manager Date Prepared: Monty M Myers Drilling Engineer 7.19.2016 Date Page 3 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 Ililcorp Alaska, 1.1.1: 3.0 Tubular Program Hole OD in Wt #/ft ou 1OD ID in Drift in Grade Conn To Bottom 8-1/2" 7" 29 7.656 6.184 6.059 L-80 DWC/C 5800 13000 4.0 Drill Pipe Information Hole Section OD (in) ID (in) TJ ID (in) TJ OD in Wt (#/ft) Grade Conn Burst (psi) Collapse (psi) Tension (k-lbs) 8-1/2" 4-1/2" 3.826 3" 6-1/4" 16.6 X-95 NC46(XH) 10,268 8,853 396 All casing will be new, PSL 1 (100% mill inspected, 10% inspection upon delivery to TSA in Fairbanks). Page 4 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 Ilik-1, %64a. LLC 5.0 Internal Reporting Requirements 19.1 Fill out daily drilling report and cost report on Wellez. i. Report covers operations from 6am to 6am ii. Click on one of the tabs at the top to save data entered. If you click on one of the tabs to the left of the data entry area — this will not save the data entered, and will navigate to another data entry tab. iii. Ensure time entry adds up to 24 hours total. iv. Try to capture any out of scope work as NPT. This helps later on when we pull end of well reports. 19.2 Afternoon Updates i. Submit a short operations update each work day to pmazzolinighilcorp com, lkellerghilcorp.com, mmyersgahilcorp.com and cdingerghilcorp.com 19.3 5am Weekend Update i. Submit a short operations update each weekend and holiday to whoever is assigned weekend or vacation duty. Details will be sent before each weekend or holiday. ii. Copy pmazzolinighilcorp.com, lkellerghilcorp.com and mmyersghilcorp.com 19.4 EHS Incident Reporting i. Notify EHS field coordinator. 1. This could be one of (3) individuals as they rotate around. Know who your EHS field coordinator is at all times, don't wait until an emergency to have to call around and figure it out!!!! a. John Coston: 0: (907) 777-6726 C: (907) 227-3189 b. Mark Tornai: 0: (907) 283-1372 C: (907) 748-3299 c. Thad Eby: 0: (907) 777-8317 C: (907) 602-5178 2. Spills: Julieanna Orczewska: 0:907-777-8444 C:907-715-7060 ii. Notify Drlg Manager 1. Paul Mazzolini: 0: 907-777-8369 C: 907-317-1275 iii. Submit Hilcorp Incident report to contacts above within 24 hrs 19.5 Casing Tally i. Send final "As -Run" Casing tally to mmyers@hilcorp.com ohilcorp.com and cdinger@hilcorp.com 19.6 Casing and Cmt report i. Send casing and cement report for each string of casing to mmyers@hilcorp.com and cdinger@hilcorp.com Page 5 Revision 0 July, 2016 6.0 Planned Wellbore Schematic 6 SDD Liner Hanger 5,800' 8-1/2" Window ±6,000' RKR to Sea Level (MSL) - 122' KB 3S' 3 4 0 TD = 13,000' ' PBTD = 12,900' Max Hole Angle =80` 2 K-26RD2 Drilling Procedure Rev 0 McArthur River Field Well: K-26RD PROPOSED APl 4: 50-7 33-XXXXX f 05 PrD: xxx-xxx /`(g- (� CASING DETAIL SIZE WT GRADE CONN TOP I BTM. 24" 186 X-56 Weld 0 350' 13-3/8" 68 K-55 BTC 0 2938' 9-5/8" 53.5 P110 OTC 0 8672' 7" 29 L-80 DWC/C 58W 130D0' JEWELRY DETAIL No Depth (MD) Depth (TVD) ID Item 1 ±5,800' ±5,185' 6.059" SDD Baker Liner Hanger 2 ±6,000' ±5,361' - KOP 3 ±5,800'- 13,000' ±9,849' 6.059" 7" 29tt L-80 DWC/C CEMENT DETAIL No TOC Depth TOC Depth Volume Item (MD) (TVD) 4 ±10,000' ±9,021' 89 bbls 15.3 pig Class G cement w/ % bbl cemnet LCM Page 6 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 Ililrnrp .%64a. LIA: 7.0 Drilling Summary K-26RD2 is an oil production well planned to be re -drilled in a North-easterly direction from the existing K- 26RD utilizing the existing casing program down to 6000' MD / 5361' TVD. At 6000' MD the parent wellbore will be sidetracked and new wellbore drilled penetrating several Hemlock targets. A 7000' x 8-1/2" open hole section is planned. A 7" 29# L-80 DWC/C prod liner will be run, cemented, and perforated based on data obtained while drilling the interval. The well will be completed with a 3-1/2" ESP completion. Drilling operations are expected to commence approximately September 5th, 2016. All waste & mud generated during drilling and completion operations will be hauled to the Kenai Gas Field G&I facility for disposal / beneficial reuse depending on test results. A separate sundry notice will be submitted to cover P&A and wellbore preparation for the sidetrack and for running the completion assembly ft. I L_ , 30 6 General sequence of operations pertaining to this approved drilling procedure: 1. Kuukpik Rig 5 will be over slot 26 to de -complete and P&A well under separate sundry. �2. DP should be stood back in derrick 3. PU whipstock, and mills and TIH to CIBP 4. Orient whipstock and set at 45 de2 left of hiahside.,__ ......... _.. . 5. Mill 8-1/2" window and 20' of new formation at 6000'. 6. POOH and LD mills. PU directional BHA and TIH to window. 7. Swap well to 9.2 ppg oil based drilling mud - 8. Perform FIT to 12.5 ppg EMW 9. Drill 8-1/2" production hole from 6020' to 13000' MD, performing short trips as needed 10. Perform short trip and condition mud. POOH r ` 11. LD Directional Tools. RIH w 7" liner. Set liner and cement. Circ wellbore clean. 12. POOH, laying down DP and liner running tools, 13. PU 7" casing scraper assembly and TIH to landing collar. 14. Circ casing clean. POOH laying down DP. 15. Run 3-1/2" completion. (Covered under separate sundry) 16. Land hanger and test. 17. ND BOPE, NU tree and test void Page 7 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 11it •orjo Ala..+ka. LIA: 8.0 Mandatory Regulatory Compliance / Notifications Regulatory Compliance Ensure that our drilling and completion operations comply with the below AOGCC regulations. If additional clarity or guidance is required on how to comply with a specific regulation, do not hesitate to contact the Anchorage Drilling Team. • BOPs shall be tested at eek intervals during the drilling of K-26RD2. Ensure to provide AOGCC 48 hrs notice prior to testing BOPs. • The initial test of BOP equipment will be to 250/3500 psi & subsequent tests of the BOP equipment will be to 250/3500 psi for 5/5 min (annular to 50% rated WP, 2500 psi on the high test for initial and subsequent tests). Confirm that these test pressures match those specified on the APD. • If the BOP is used to shut in on the well in a well control situation, we must test ALL BOP components utilized for well control prior to the next trip into the wellbore. This pressure test will be charted same as the 14 day BOP test. • All AOGCC regulations within 20 AAC 25.033 "Primary well control for drilling: drilling fluid program and drilling fluid system" • All AOGCC regulations within 20 AAC 25.035 "Secondary well control for primary drilling and completion: blowout prevention equipment and diverter requirements" • Ensure AOGCC approved drilling permit is posted on the rig floor and in Co Man office. Variance Requests: o None requested Page 8 Revision 0 July, 2016 Ilik•orp Alaska, UY Summary of BOP Equipment and Test Requirements K-26RD2 Drilling Procedure Rev 0 Hole Section Equipment Test Pressure(psi) • 13-5/8" Shaffer 5M annular • 13-5/8" 5M Shaffer SL Double gate • Blind ram in bottom cavity Initial Test: 250/3500 (Annular 2500 psi) 8-1/2" • Mud cross • 13-5/8" 5M Shaffer SL single gate • 3-1/16" 5M Choke Manifold Subsequent Tests: 250/3500 • Standpipe, floor valves, etc (Annular 2500 psi) • Primary closing unit: Control Technology Accumulator, 3000psi, 5 station, 170 gallon reservoir, 4 nitrogen backups and 12 bladder bottles. Primary closing hydraulic pressure is provided by an electrically driven triplex pump. Secondary back-up is an air pump, and tertiary emergency pressure is provided by bottled nitrogen. Required AOGCC Notifications: • Well control event (BOPs utilized to shut in the well to control influx of formation fluids). • 48 hours notice prior to spud. • 48 hours notice prior to testing BOPS. • 48 hours notice prior to casing running & cement operations. • Any other notifications required in APD. Additional requirements may be stipulated on APD. Regulatory Contact Information: AOGCC Jim Regg / AOGCC Inspector / (0): 907-793-1236 / Email: jim.regg@alaska.gov Guy Schwartz / Petroleum Engineer / (0): 907-793-1226 / (C): 907-301-4533 / Email: guy.schwartz@alaska.gov Victoria Loepp / Petroleum Engineer / (0): 907-793-1247 / Email: victoria.loepp@alaska.gov Primary Contact for Opportunity to witness: AOGCC.Inspectors@alaska.gov Test/Inspection notification standardization format: http://doa.alaska.gov/oge/forms/TestWitnessNotif.html Notification / Emergency Phone: 907-793-1236 (During normal Business Hours) Notification / Emergency Phone: 907-659-2714 (Outside normal Business Hours) Page 9 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 I lil •orp .%IaAa.. I.I.0 9.0 R!U and Preparatory Work 9.1 Separate sundries will be submitted that will include the following: • Pull tubing 3$ L • P&A lower perfs with a cement plug f / 4L • Set CIBP 5-"A.' a' 9.2 Mix mud for 8-1/2" hole section. 9.3 Verify 5" liners installed in mud pump #1 and 6" liners installed in pump #2. • Ellis Williams WH-1000 Pumps are rated at 2800 psi (100%) with 5" liners and can deliver 245 gpm at 100 spm. • TSM 1000 Pumps are rated at 2800 psi (100%) with 6" liners and can deliver 317 gpm at 100 spm. • Ideal pump rate for drilling will be 365 gpm. Both pumps running at 65 spm should achieve this. Pump #1 Ellis Williams WH100010" Stroke 96% Efficiency Max psi 2800 psi Liner Size bbls/stroke 5 0.0583 Strokes/minute 20 40 65 80 100 120 140 150 bpm 1.17 2.33 3.79 4.66 5.83 6.99 8.16 8.74 gpm Pump #2 TSM 1000 9" Stroke 96% Efficiency Max psi 2800 psi Liner Size bbls/stroke 6 0.0755 Strokes/minute b 49 20 1.51 63 98 40 3.02 127 159 65 4.91 206 196 80 6.04 254 245 100 7.55 317 294 120 9.06 381 343 140 10.58 444 367 150 11.33 476 Page 10 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 Ili c—lo k1aAa. LLC 10.0 BOP N/U and Test 10.1 * BOPE was NU and tested on prior decompletion sundry. We will test BOPE on 7 day cycle until the window is milled, at that point we will switch to the 44 day test cycle. Continue on to step 11. 10.2 N/U 13-5/8" x 5M BOP as follows (top down): 4 • 13-5/8" x 5M Shaffer annular BOP. • 13-5/8" Shaffer Type "SU Double ram. (2-7/8" X 5-1/2" VBR in top cavity, blind ram in btm cavity) • 13-5/8" mud cross • 13-5/8" Shaffer Type "SU single ram. (2-7/8" X 5-1/2" VBR) • N/U pitcher nipple, install flowline. • Install (2) manual valves on kill side of mud cross. Manual valve used as inside or "master valve". • Install (1) manual valve on choke side of mud cross. Install an HCR outside of the manual valve. 10.3 Run BOP test assy, land out test plug (if not installed previously). • Test BOP to 250/3500 psi for 515 min. Test annular to 250/2500 psi for 5/5 min. • Ensure to leave "A" section side outlet valves open during BOP testing so pressure does not build up beneath the test plug. Confirm the correct valves are opened! ! ! • Test V BRs on 4-1 /2" test joint. • Ensure gas monitors are calibrated and tested in conjunction w/ BOPE. 10.4 R/D BOP test assy. 10.5 Continue mixing mud for 8-1/2" hole section. 10.6 Set wearbushing in wellhead. Ensure ID of wearbushing > 7" Page 11 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 Ililrurp Alaska. L1.1: 11.0 Mud Program and Density Selection Criteria 11.1 8-1/2" Production hole mud program summary: Primary weighting material to be used for the hole section will be barite to minimize solids. We will have enough barite on location to weight up the active system 1ppg above highest anticipated MW in the event of a well control situation. Canrig PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller's console, Co Man office, Toolpusher office, and mud loggers office. System Type: 9.2 ppg 70/30 Enviromul MOBM Properties: Mud Weight MD (PPg) Viscosity Pv YP HTHP WPS ES 6,000 — 13,000' 9.2-9.5 ' 50-80 15-30 15-22 <5 250-270K >580 System Formulation: 70/30 Enviromul MOBM Product Concentration LVT 0.662 bbl Water .172 bbl INVERMUL NT 4 ppb EZ MUL NT 4 ppb GELTONE V 6-10 ppb Lime 7 ppb DURATONE HT 2 ppb Calcium Chloride 21 ppb BAROID 41 9.2 ppg (as needed) BARACARB 5 3-5 ppb BARABLOK 2 ppb BAROTROL PLUS 4 ppb 11.2 Program mud weights are generated by reviewing data from producing & shut in offset wells, estimated BHP's from formations capable of producing fluids or gas and formations which could require mud weights for hole stabilization. 11.3 A guiding philosophy will be that it is less risky to weight up a lower weight mud than be overbalanced and have the challenge to mitigate lost circulation while drilling ahead. Page 12 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 11ilcorp.UaAa. LLI: 12.0 Whipstock Running Procedure Section 12.1 through 12.5 is covered under decompletion sundry, drilling proceed to 12.6 12.1 M/U window milling assembly and TIH w/ 4-1/2" DP out of derrick. • Use a 8-1/2" taper mill and an 8-1/2" string mill above to ensure whipstock assy will pass freely. • Ensure BHA components have been inspected previously. • Caliper and drift all BHA components before running them in the hole. • Drift DP prior to RIH. • Lightly wash and ream any tight spots noted. 12.2 TIH to CIBP (-6000' MD). Note that this was a wireline measurement so actual depth tagged may vary slightly. Keep up with the # of joints picked up so we know where we are. 12.3 Pressure test __casing to 2500 vs'i / 30 min. Chart record casing test & keep track of the amount of 5 fluid pumped. Stage up to 2500 psi in 500 psi increments. 12.4 CBU & circ at least (1) hi-vis sweep to remove any debris created by the clean out run. Anything left in the wellbore could affect the setting of the Whipstock. 12.5 TOH. 12.6 Make up mills on a joint of HWDP. 12.7 RIH & set in slips. 12.8 Make up float sub, install float. 12.9 Leave assembly hanging in the elevators, and stand back on floor. 12.10 Bring Whipstock to rig floor on the pipe skate. Do not slam into bottom of Whipstock with pipe skate. 12.11 Pickup Whipstock per Baker rep using the Baker Whipstock handling system using air hoist. Allow assy to hang while Baker Rep inspects and removes shear screws as needed and any safety screws. Note: Anchor should be pinned with 6 shear screws initially. Shear screws are rated for 6,630 lbs each. REMOVE 3 screws for a set down shear of 6,630 x 3=19,8901bs. Note: Attach mills to Whipstock with (1) 35k mill shear bolt. 12.12 If needed, open BOP Blinds. Page 13 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 Ililrarp .kla.ka. LI.I: 12.13 Run the Whipstock in the hole, install safety clamp as per Baker Rep, and install hole cover wrap. 12.14 Release pick up system at this point, Make up mills. 12.15 With the top drive, pick the assembly and position the starting mill to align with the hole in the slide. The Baker Rep will instruct the driller when the slot is lined up, the shear bolt then can be made up by the Baker Rep. 12.16 The assembly can now be picked up to ensure that the shear bolt is tight. 12.17 Remove the handling system. 12.18 Slowly run in the hole as per Baker Rep. Run extremely slow through the BOP & wear bushing. 12.19 Run in hole at 1 '/z to 2 minutes per stand. 12.20 Fill every 30 stands or as needed, do not rotate or work the string unnecessarily. 12.21 Call for Baker Rep. 15 — 10 stands before getting to bottom. 12.22 Orient at least 30' — 45' above the CIBP. Page 14 Revision 0 July, 2016 Ilileurp Alaska, 1,1.1; Window Master G2 Whipstock With Torque Master Bottom Trip Anchor 9.625 53.5# Non Special Drift Casing 8.500 0 H � � .4 I 6.25 6.375 —► I 9.00 0.0 8.250 0 17.08 18.54 K-26RD2 Drilling Procedure Rev 0 rel&I BAKER HUGHES Baker Oil Tools Upper Watermelon Mill OD: 8.500 Length: 1 6.25 Flex Joint OD: 6.375 Length: 9.00 Lower Watermelon Mill OD: 8.375 Length: 5.66 Window Mill OD: 8.500 f— 5.66 Length: 1.13 1.13 Whipstock OD: 8.000 Length: 18.54 Face Angle: 0 Face Length: 17.08 Retrieval BTA OD: 8.357 Length: 3.41 Overall length f Length: 44' WELL INFORMATION CUSTOMER FIELD �— 8.000 LEASE WELL NO. 3.41 �— U VOTE: DIM ENSIONSAR BASED ON TECH UNIT DATA, ACTUAL DIM ENSIGNS MAY VARY Page 15 Revision 0 SHEAR BOLT 25,000 35,000 45,000 55,000 65,000 75,000 July, 2016 Ilib•orp Alaska, LLI: 13.0 Whipstock Setting Procedure 13.1 13.2 13.3 K-26RD2 Drilling Procedure Rev 0 With the bottom of the Whipstock 30 — 45' above the CIBP, measure and record P/U and S/O weights. We will orient Whipstock face using highside MWD. Orient Whipstock to desired direction by turning DP in 1/4 round increments. P/U and S/O on DP to work all torque out (Being careful not to set BTA). Whipstock Orientation Diagram: 60LHS 30 L HS Desired orientation of the Whipstock face is 45 degrees left of high side. Hole Angle at window interval (6000' MD) is 29 deg. The wellbore trajectory is planned to kick off at 262 degrees azimuth. Once Whipstock is in desired orientation, slack off and tag CIBP to set Bottom Trip Anchor. 13.4 Set down 12-15K on anchor to trip, P/U 5-7K maximum overpull to verify anchor is set. The window mill can then be sheared off by slacking off weight on the Whipstock shear bolt. (25k shear value). 13.5 P/U 5-10' above top of Whipstock. 13.6 Displace to 9.2 ppg 70/30 Enviromul MOBM. 13.7 Record P/U, S/O weights, and free rotation. Slack off to top of whipstock and with light weight and low torque. Mill window. Utilize 4 ditch magnets on the surface to catch metal cuttings. 13.8 Install catch trays in shaker underflow chute to help catch iron. 13.9 Keep iron in separate bbls. Record weight of iron recovered on ditch magnets. Page 16 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 Hilcorp Alaska, LLC 13.10 Estimated metal cuttings volume from cutting window: Wieght of Cuttings For Milled Casing Exit O.D. Of Casing (in) 9.625 I.D. Of Casing (in) 8.535 Whipstock Face Length (Ft) 16.00 Percent of Casing Removed (%) ' 38 Milled Area (in^12) 5.908 Volume of Cuttings (in"3) 1134.272 Density of Casing (lb.lin"3) '• 0.283 �z Weight of Cutting Generated (Ibs) 321.0 Calculated Average of Casing Removed Based on Drift Mills (38%) " Density of Steel = .263 13.11 Drill approx. 20' rat hole to accommodate the drilling assembly. Ream window as needed to assure there is little or no drag. After reaming, shut off pumps and rotary (if hole conditions allow) and pass through window checking for drag. 13.12 Circulate Bottoms Up until MW in = MW out. 13.13 Conduct FIT to 12.5 ppg EMW. l • (12.5 — 9.2) * 0.052 * 5377' tvd = 1035 psi V 13.14 Kick Tolerance • (12.5-9.2) * (5377/9849) = 1.80 Note: Offset field test data predicts frac gradients at the window to be between 12 ppg and 15 ppg. A 12.5 ppg FIT results in a 1.8 ppg kick tolerance while drilling the interval with a 9.2 ppg fluid density. 13.15 Slug pipe and POOH. Gauge Mills for wear. 13.16 Should a second run be required pick up the following BHA. Page 17 Revision 0 July, 2016 Ilileorp Alaska. LIA: Back Up Mills K-26RD2 Drilling Procedure Rev 0 Connection Lenath O.D. WINDOW MILL 4'/ REG-P X MILL 2.25 8.5 NEW LOWER WATERMELON MILL 4'/ REG-P X 4 Y REG-B 5.5 8.5 FLEX JOINT 4'h REG-P X 4'/ REG-B 9.0 6.375 STRING MILL 4 Y2 REG-P X 4'/z REG-B 5.5 8.5 FLOAT SUB 4'/" IF-B X 4 Yz" REG-B 3.0 6.375 30 jts-HWDP 4'/" XH-B X 4'/" REG-P 900' 6.5 CONNECTIONS ON TUBULARS ARE SUBJECT TO CHANGE. BHA'S SHOW SPECIFIC CONNECTIONS AS AN EXAMPLE ONLY.! Page 18 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 14.0 Drill 8-1/2" Hole Section 14.1 P/U 8-1/2" directional drilling assy. 14.2 Ensure BHA Components have been inspected previously. 14.3 Drift & caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. 14.4 Ensure TF offset is measured accurately and entered correctly into the MWD software. 14.5 Confirm that the bit is dressed with a TFA of 0.51 - 0.61 sgin. Have DD run hydraulics models to ensure optimum TFA. We want to pump at 300-375gpm. 14.6 Motor AKO should be set at 1.2 deg. Must keep up with 5 deg/100 DLS in the build section of the wellbore. 14.7 Primary bit will be the Varel 8-1/2" VM613P PDC bit. Ensure to have a back up bit available on location. COMPONENT Item i HDBS - PDC .0 (in) 8.400 (in) 2.500 (in) 8.500 (Ibpf) 172.13 COnneCtIOn P 4-1,2- REG (ft) 1.20 Length 01) 1.20 2 7' SperryDrill lobe 718 - 7.5 stg 7.000 4.952 95.69 B 4-1.rY IF 29.48 30.68 Stabilizer 8.375 3 Non Mag Float Sub 6.750 2.750 101.71 8 4-112" IF 3.00 33.68 4 Integral Blade 6.750 2.750 8.375 101.71 B 4-112' IF 3.60 37.28 5 6 314' DM Collar 6.750 3.125 103.40 B 4-1/7 IF 9.20 46.48 6 6 314" DGR Collar 6.750 1.920 97.80 B 4-112' IF 4.55 51.04 7 6 3+4' EWR-P4 Collar 6.750 2.000 104.30 B 4-V2" IF 12.10 63.14 8 Inline Stabilizer (ILS) 6.750 1.920 8.375 112.09 B 4-112" IF 3.20 66.34 9 6 3'4" PWO 6.750 1.905 96.30 B 4-1t2' IF 4.44 70.78 10 6 3t4" HUM Collar 6.750 1.920 101.70 8 4.11Y IF 4.97 75.74 11 6 34" TM - HOC (Pulser) 6.900 3.250 103.60 B 4-1 PY IF 15.50 91.24 12 6-314' Non Mag Flex Drill Collar 6.750 2.813 100.77 B 4-1/2' IF 30.00 121.24 13 6-314" Non Mag Flex Drill Collar 6.750 2.813 100.77 B 4-1/2' IF 30.00 151.24 14 6-314" Non Mag Flex Drill Collar 6.750 2.813 100.77 30.00 181.24 15 6 Joint 5' HWDP 5.000 3.000 49.30 180.00 361.24 16 6-114' Weatherford Hydraulic Jar 6.250 2.250 91.01 30.00 391.24 17 14 Joints 5' HWDP 5.000 3.000 49.30 420.00 811.24 811.24 Page 19 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 • Tool 2 3 /►� �f Assembly: A09148 il,'.. Naviptor1r. . Y' IADC Code: M433 s PRODUCT SPECIFICATIONS t \ y'"� to Cutter Size: 13 mm Cutter Back Up: 13mm PDC & Replaceable Shock Studs Total Cutter Count: 76 Face Cutter Count: 58 ✓a Connection: 41/2" API Regular Nozzle 1 Qty/Type: 6 - Series 55 ( Nozzle 2 Q /T - tY Ype: Junk Slot Area: 14.3in' (92.3cm2) Gage Pad Length: 2112" (64mm) Make Up Length: 11.4" (288.8mm) Shank Diameter: 5.8" (147.3mm) OPERATING PARAMETERS` Rotary Speed: For all rotary and motor applications Fiowrate Min -Max: 250 - 750GPM (0.95 - 2.84m'/min) Max Weight On Bit: 42000lbs (18683daN) �� • Makeup Torque: 12000-16000Ft-Lbs. (16270 - 21693Nm) S*w 6petatmg parameters shcnn, are cy -scat for the G.t type speOed cC recommendatic:^5 on y0 !'sue t: c applmat4fi. contact your ;argil fr.:em�atcnaf repease WJ:e Navigator Series Bits - Varel's six step design / manufacturing process utilizes GeoScience interpreted logs, proprietary design software SPOT. 3D modeling programs. CFD, and specialized manufacturing techniques to produce the best possible bit for the application. Navigator bits are engineered to a specific Directional profile for a given application. Navigator bits possess the key design elements affecting bit steerability and directional behavior helping you achieve your drilling objectives. Bit Features P - Partial PowerCutters"I provide extra cutter density on the shoulder reducing excessive wear or cutting structure damage when drilling interbedded formations. Shock Studs - Shock studs limit drill bit vibration and increase stability allowing smooth cutting action Increasing cutter life and overall bit performance. Updrlll Cutters - PDC cutters strategically placed to help reduce hole problems when up drilling or back reaming. Premium Gage - The premium gage consists of thermally stable polycrystalline diamond and pdc (polycrystalline diamond compact) cutters; designed to insure that correct hole diameter is maintained. Page 20 Revision 0 July, 2016 1 K-26RD2 Drilling Procedure Rev 0 Ililrurp Ala.ku. HA: 14.8 TIH to window. Shallow test MWD on trip in. 14.9 TIH through window, ensure Halliburton MWD service rep on rig floor during this operation. Do not rotate string while bit is across face of Whipstock. 14.10 Drill 8-1/2" hole to 13000' MD using motor assembly. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Utilize Inlet experience to drill through coal seams efficiently. Coal seam log will be provided by Hilcorp Geo team, try to avoid sliding through coal seams. Work through coal seams once drilled. • Keep swab and surge pressures low when tripping. • See attached mud program for hole cleaning and LCM strategies. • Ensure solids control equipment functioning properly and utilized to keep LGS to a minimum without excessive dilution. • Adjust MW as necessary to maintain hole stability. • Ensure mud engineer set up to perform HTHP fluid loss. • Maintain API fluid loss < 6. • Take MWD surveys every stand drilled. • Minimize backreaming when working tight hole 14.11 Hilcorp Geologists will follow mud log closely to determine exact TD. 14.12 At TD pump a sweep and a marker to be used as a fluid caliper to determine annulus volume for cement calculations. CBU, and pull a wiper trip back to the window. 14.13 TOH with drilling assembly, handle BHA as appropriate. Page 21 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 Ililrurp kl ska, LH: 15.0 Run 7" Production Liner 15.1 R/U Weatherford 7" casing running equipment. • Ensure 7" DWC/C x 4-1/2" XH crossover on rig floor and M/U to FOSV. • R/U fill up line to fill casing while running. • Ensure all casing has been drifted and tally verified prior to running. • Be sure to count the total # of joints before running. • Keep hole covered while R/U casing tools. • Record OD's, ID's, lengths, S/N's of all components w/ vendor & model info. 15.2 P/U shoe joint, visually verify no debris inside joint. 15.3 Continue M/U & thread locking shoe track assy consisting of: • (1) Shoe joint w/ shoe bucked on & threadlocked (coupling also thread locked). • (1) Baker locked joint. • (1) Joint with float collar bucked on pin end & threadlocked (coupling also thread locked). • (1) Joint with landing collar bucked up. • Rigid or Solid body centralizers will be pre -installed on shoe joint, FC joint, and LC joint. • Install centralizers, one per joint, and leave centralizers free floating so that they, can slide up and down the joint. • Ensure proper operation of float shoe & FC. 15.4 Continue running 7" production liner • Fill casing while running using fill up line on rig floor. • Use "API Modified" thread compound. Dope pin end only w/ paint brush. • Install solid body centralizers on every other joint to window. Leave the centralizers free floating. • Utilize a collar clamp until weight is sufficient to keep slips set properly. 7" DWC/C M/U torques Casing OD Minimum Maximum Torque 7" 19,200 ft-lbs 22,100 ft-lbs EIE!2�5tOO�O�ft-lbs Page 22 Revision 0 July, 2016 Ililrorp .kla.ka. LLC Technical Specifications Connection Type: Size(O.D.): DWCIC Casing 7 in 2012 API Spec 5CT Coupling O D. Material L-80 Grade 80,000 Minimum Yield Strength (psi) 95.000 Minimum Ultimate Strength (psi) Pipe Dimensions 7.000 Nominal Pipe Body O.D. (in) 6.184 Nominal Pipe Body I.D.(in) 0.408 Nominal Wall Thickness (in) 29.00 Nominal Weight (Ibsfft) 28.75 Plain End Weight (Ibsfft) 8.449 Nominal Pipe Body Area (sq in) Pipe Body Performance Properties 676,000 Minimum Pipe Body Yield Strength (Ibs) 7,030 Minimum Collapse Pressure (psi) 8,160 Minimum Intemal Yield Pressure (psi) 7.500 Hydrostatic Test Pressure (psi) Connection Dimensions 7.875 Connection O.D. (in) 6.184 Connection I.D. (in) 6.125 Connection Drift Diameter (in) 4.50 Make-up Loss (in) 8.449 Critical Area (sq in) 100.0 Joint Efficiency (%) K-26RD2 Drilling Procedure Rev 0 Weight (Wall): Grade: 29.00 lb/ft (0.408 in) L-80 I "IAM USA Connection Performance Properties 676,000 Joint Strength (Ibs) 16.650 Reference String Length (ft) 1.4 Design Factor 718,000 API Joint Strength (Ibs) 338,000 Compression Rating (Ibs) 7,030 API Collapse Pressure Rating (psi) 8,160 API Internal Pressure Resistance (psi) 26.2 Maximum Uniaxial Bend Rating [degreesf100 ft] Appoximated Field End Torque Values 19,200 Minimum Final Torque (ft-Ibs) 22.100 Maximum Final Torque (ft-Ibs) 25,000 Connection Yield Torque (ft-Ibs) VAM USA 4424 W. Sam Houston Pk%vy. Suite 150 Houston. TX 77041 Phone: 713-479-3200 Fax: 713-479-3234 EanaiL VAMUSAsalesQyam-usa.com Page 23 Revision 0 July, 2016 _fgjs K-26RD2 Drilling Procedure Rev 0 Ililrorp UaAa. 1.1.1: 15.7 Ensure to run enough liner to provide for approx 200' overlap inside 9-5/8" casing. Ensure hanger/pkr will not be set in a 9-5/8" connection. 15.8 Before picking up Baker SDD liner hanger / packer assy, count the # of joints on the pipe deck to. make sure it coincides with the pipe tally. 15.9 M/U Baker SDD liner top packer. Fill liner tieback sleeve with "Pal mix", ensure mixture is thin enough to travel past the HRD tool and down to the packoff. Wait 30 min for mixture to set up. 15.10 RIH one stand and circulate a minimum of one liner volume. Note weight of liner. 15.11 RIH w/ liner on DP no faster than 1 min / stand. Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 15.12 M/U top drive and fill pipe while lowering string every 10 stands. 15.13 Set slowly in and pull slowly out of slips. 15.14 Circulate 1-1/2 drill pipe and liner volume at 9-5/8" window prior to going into open hole. Stage pumps up slowly and monitor for losses. Do not exceed 60% of the nominal liner hanger setting pressure. 15.15 Obtain up and down weights of the liner before entering open hole. Record rotating torque at 10, 20, & 30 rpm. 15.16 Continue to fill the string every 10 joints while running liner in open hole. Do not stop to fill casing. 15.17 P/U the cmt stand and tag bottom with the liner shoe. P/U 2' off bottom. Note slack -off and pick-up weights. Record rotating torque values at 10, 20, & 30 rpm. 15.18 Stage pump rates up slowly to circulating rate without exceeding 60% of the liner hanger setting pressure. Circ and condition mud with the liner on bottom. Reduce the low end rheology of the drilling fluid by adding water and thinners. 15.19 Reciprocate & rotate string if hole conditions allow. Circ until hole and mud is in good condition for cementing. Page 24 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 Ilile—lo .UaAa. IJ.1: 16.0 Cement 7" Production Liner • Cement will be mixed using batch mixer to ensure consistent density 16.1 Hold a pre job safety meeting over the upcoming cmt operations. 16.2 Attempt to reciprocate the casing during cmt operations until hole gets sticky. 16.3 Pump 15 bbls 12.5 ppg MUDPUSH II spacer. 16.4 Test surface cmt lines to 4500 psi. 16.5 Mix and pump 89 bbls of 15.3 ppg class "G" cmt per below recipe with 0.5 lb/bbl of Cemnet or equivalent loss circulation fiber. Ensure cmt is pumped at designed weight. Job is designed to pump 25% OH excess but if fluid caliper dictates otherwise we may increase excess volumes. Cement volume is designed to bring cement up to a minimum of 500' above hemlock in annulus of 7" casing and 8-1/2" open hole. Est TOC 10000' TMD. 16.6 Displacement fluid will be drilling mud. —341 bbls of displacement fluid Cement Calculations 8-1/2" OH x 7" Liner: (13000'—10000') x 0.02259 x 1.25 = 84.7 bbls Shoe Track: 120' x 0.03715 = 4.5 bbls Total Volume (bbls): 84.7 + 4.5 = 89.2 bbls Total Volume (ft3): 89.2 bbls x 5.615 ft3/bb1= 3 Total Volume (sx): 501 113 / 1.34 ft3/sk = 374 sx Page 25 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 11i1c,,q) Al—ka, LIA: Slurry Information: System Easy BLOK Density 15.3 lb/gal Yield 1.34 ft3/sk Mixed Water 5.879 gal/sk Mixed Fluid 5.879 gal/sk Expected Thickening 70 Bc at 05:00 hr:mn API Fluid Loss <25 mL in 30.0 min at 155degF / 1000 psi Additives Code Description Concentration G D046 D202 D400 D154 Cement Anti Foam Dispersant Gas Control Agent Extender 94 lb/sk 0.2% BWOC 1.5% BWOC 0.8% BWOC 8.0% BWOC 16.7 Drop DP dart and displace with drilling mud. 16.8 Pump cement at max rate of 8 bbl/min. Reduce pump rate to 3 bpm prior to latching DP dart into liner wiper plug. Note plug departure from liner hanger running tool and resume pumping at full displacement rate. Displacement volume can be re -zeroed at this point 16.9 If elevated displacement pressures are encountered, position liner at setting depth and cease reciprocation. Monitor returns & pressure closely while circulating. Notify Drilling Foreman immediately of any changes. Reduce pump rate as required to avoid packoff. 16.10 Bump the plug and pressure up to up as required by Baker procedure to set the liner hanger (15% above nominal setting pressure. Hold pressure for 3-5 minutes. 16.11 Slack off total liner weight plus 30k to confirm hanger is set. 16.12 Do not overdisplace by more than shoe track (-1 bbls). Shoe track volume is 1.8 bbls. 16.13 Pressure up to 4200 psi to release the running tool (HRD-E) from the liner Page 26 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 16.14 Bleed pressure to zero to check float equipment. 16.15 P/U, verify setting tool is released, and expose setting dogs on top of tieback sleeve 16.16 Rotate slowly and slack off 50k downhole to set ZXP. 16.17 Pressure up drill pipe to 500 psi and pick up to remove the RS packoff bushing from the RS profile. Bump up pressure as req'd to maintain 500 psi DP pressure while moving pipe until the pressure drops rapidly, indicating pack -off is above the sealing area (ensure that 500 psi will be enough to overcome hydrostatic differential at liner top). 16.18 Immediately with the loss of pressure and before DP reaches zero, initiate circulation while picking up to position the bottom of the stinger inside the tieback sleeve. Increase pump rate to wellbore clean up rate until the sleeve area is thoroughly cleaned. 16.19 Pick up to the high -rate circulation point above the tieback extension, mark the pipe for reciprocation, do not re -tag the liner top, and circulate the well clean. 16.20 Watch for cement returns and record the estimated volume. Rotate & circulate to clear cmt from DP. 16.21 POOH, LDDP. Verify the liner top packer received the required setting force by inspecting the rotating dog sub. Backup release from liner hanger: 16.22 If the HRD-E tool still does not release hydraulically, left-hand (counterclockwise) torque will have to be applied to the tool. This torque acts to shear brass screws. Bleed off pump pressure and ensure that the tool is in the neutral position. Apply left-hand torque as required to shear screws. 16.23 NOTE: Some hole conditions may require movement of the drillpipe to "work" the torque down to the setting tool. 16.24 After screws have sheared, the top sub and body of the setting tool will turn 1/4 turn. Then proceed slacking off set -down weight to shear second set of shear screws. The top sub will drop 1-3/4 inches. At this point, the bottom sub no longer supports the collet fingers. Pick straight up with workstring to release collet from the profile. Page 27 Revision 0 July, 2016 IN q. Uaska.. LIA: K-26RD2 Drilling Procedure Rev 0 Ensure to report the following on Wellez: • Pre flush type, volume (bbls) & weight (ppg) • Cement slurry type, lead or tail, volume & weight • Pump rate while mixing, bpm, note any shutdown during mixing operations with a duration • Pump rate while displacing, note whether displacement by pump truck or mud pumps, weight & type of displacing fluid • Note if casing is reciprocated or rotated during the job • Calculated volume of displacement, actual displacement volume, whether plug bumped & bump pressure, do floats hold • Percent mud returns during job, if intermittent note timing during pumping of job. Final circulating pressure • Note if pre flush or cement returns at surface & volume • Note time cement in place • Note calculated top of cement • Add any comments which would describe the success or problems during the cement job Note: Send Csg & cmt report + "As -Run" liner tally to mmyersAhilcorp.com Page 28 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 IliIc—lo %L.Aa, LLI: 17.0 Wellbore Clean Up & Displacement 17.1 M/U casing clean out assy complete with casing scraper assys for each size casing in the hole. • 6" bit or mill • Casing scraper & brush for 7" 29# casing • +/- 7000' 2-7/8" workstring. • Casing scraper & brush for 9-5/8" 53.5# casing • (2000') 4-1 /2" DP • Casing scraper & brush for 9-5/8" 53.5# casing • 4-1 /2" DP to surface. 17.2 TIH & clean out well to landing collar (+/- 12,880' MD). • Circulate as needed on trip in if string begins to take weight. • Circulate hi-vis sweeps as necessary to carry debris out of wellbore. Ensure 6" bit is worked down to the landing collar. Space out the cleanout BHA so that the 6" bit reaches the 4-1/2" landing collar when crossover is +/- 30' above the 7" liner top. 17.3 After wellbore has been cleaned out satisfactorily using mud, test casing to 3500 psi / 30 min. Ensure to chart record casing test. 17.4 Displace drilling fluid in wellbore with a hi-vis pill followed by filtered inlet water. • Circulate 3 to 4 B/U until clean-up is satisfactory. Do not recirculate fluid, pump and dump • After a couple circulations using FIW, short trip the assy to bring the upper 7" multi -back assy to surface. • RIH again & tag landing collar w/ 6" bit. Continue circulation as necessary until fluid cleans up. Make another short trip if necessary. • Pump a chemical train followed by FIW. Target NTU's are 80-100 17.5 TOH w/ clean out assy. LDDP on the trip out. L/D the 2-7/8" work string. Page 29 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 Ililrorp Alaska. HA: 18.0 Run Completion Assembly 19.1 Run 3-1/2" tubing completion assembly as per separate Approved Completion Sundry 19.0 RD 19.1 Install BPV in wellhead. RILDs. 19.2 ND BOPE, NU tree, test void 19.3 Rig Down Page 30 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 20.0 BOP Schematic Rig Floor v Page 31 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 21.0 Wellhead Schematic King Salmon Tbg hanger, OCT-UH-TC-1A- K-26RD ESP, 13 X 4 Y, IBT lift and 24 X 13 3/8 X 9 5/8 X 4 Y, cusp, w/ 4" Type H BPV profile, 3/8 cont control line port BHTA, B-11-AO, 4 1/16 5M FE Valve, Swab, WKM-M, 4 1/16 SM FE, HWO, EE trim Valve, Wing, WKM-M, 2 1/16 5M FE, HWO, AA trim t Valve, Master, WKM-M, 4 1/16 5M FE, HWO, EE trim Unihead, OCT type 3, 13 5/8 SM API hub top X 13 3/8 BTC casing bottom, w/ 1- 2 1/16 SM SSO on lower section, 1- 2 1/16 SM SSO on middle section, 3- 2 1/16 SM SSO on upper section , IP internal lockpin assy Starting head, OCT, 21 Y. 21M FE X 24" SOW, w/ 1. 3 1/8 2M EFO, full set of lockpins J 9 5/8" 4 Y" Valve, Wing, WKM-M, 3 1/8 5M FE, w/ OMNI oper, EE trim 24" Valve, Wing, CIW-FL, 3 1/8 SM FE, HWO, EE trim Adapter, OCT-A5-ESP, 13 5/8 SM API hub X 4 1/16 SM stdd top, w/ 2- Y, control line exits, prepped w/ OCT 400.4 pocket All unihead annular valves, 2 1/16 5M FE OCT-20, HWO Valve, OCT-20, 3 1/8 2M FE, 7l A HWO Page 32 Revision 0 July, 2016 Ilileorp Alaska, LLC 22.0 Days vs Depth rel f I Em 6000 10000 12000 14000 K-26RD2 Drilling Procedure Rev 0 Days Vs Depth 0 5 10 15 20 25 30 35 Days Page 33 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 GEOLOGICAL PROGNOSIS WELL NAME.' K26RD2 FIELD: SURFACE X: 213764. 50 STATE.ET KB 122 Based on new rig config. 0.0 Drill a sidetrack out of the K-26RD (King Salmon) to test and complete the Hemlock H-1 thru H-3 benches . We will permit the well to 13000 md, but will be ready to stop before reaching the H-4 which is expected to be depleted from production in the K-26RD. Based on subsurface evaluation K26RD2 EXPECTED Formation FORMATION FLUID MD TVD Est Pressure EMW Gradient KOP 6000 5361 2321 8.3 0.43 MKR_3 Coal 6972 6244 2704 8.3 0.43 MKR_4 Coal 7587 6805 2947 8.3 0.43 MKR_4_5 Coal 7780 6981 3023 8.3 0.43 MKR_6 Coal 8808 7918 3428 8.3 0.43 MKR_7_5 Coal 9212 8294 3591 8.3 0.43 MKR_10 Coal 9449 8523 3690 8.3 0.43 COAL39 Coal 9944 8975 3886 8.3 0.43 Sand/ H1X_FW Conglomerate Oil Sand 10914 9505 4116 8.3 0.43 Sand / HK1T Conglomerate Oil Sand 11045 9527 4125 8.3 0.43 Sand / HK2T Conglomerate Oil Sand 11384 9583 4149 8.3 0.43 Sand / HK3T Conglomerate Oil Sand 12052 9693 4197 8.3 0.43 50 FT man Crew below KOP idle combo - ADR ESP completion 2000 bpd gross fluid 2 7/8" or 3.5" Page 34 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 Ililcurp UaAa, LLC 24.0 Anticipated Drilling Hazards Lost Circulation: Ensure 500 lbs of medium/coarse fibrous material, 500 lbs SteelSeal (Angular, dual -composition carbon -based material), & 500 lbs different sizes of Calcium Carbonate are available on location to mix LCM pills at moderate product concentrations. Hole Cleaning: Maintain rheology w/ viscofier as necessary. Sweep hole w/ 20 bbls flowzan as necessary. Optimize solids control equipment to maintain density and minimize sand content. Maintain programmed mud specs. Coal Drilling: The following lessons were learned from extensive experience drilling coal seams in Cook Inlet. The need for good planning and drilling practices is also emphasized as a key component for success. • Keep the drill pipe in tension to prevent a whipping effect which can disturb coal sections. • Use asphalt -type additives to further stabilize coal seams. • Increase fluid density as required to control running coals. • Emphasize good hole cleaning through hydraulics, ROP and system rheology. • Minimize swab and surge pressures • Minimize back reaming through coals when possible H2S: 112S is not present in this hole section. No abnormal temperatures or pressures are present in this hole section. Page 35 Revision 0 July, 2016 Ilil,wjo %64a. LIA: 25.0 Rig Layout w o c r O N O Cn ri c8 _-n v 3♦ p Q ¢ 0 O T tz 0 K-26RD2 Drilling Procedure Rev 0 0 0 r 0 0 —4-- 000,ois 000,09 Page 36 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 Ilikvorp:Uaaka. LLI: 26.0 FIT Procedure Formation Integrity Test (FIT) and Leak -Off Test (LOT) Procedures Procedure for FIT: 1. Drill 20' of new formation below the casing shoe (this does not include rat hole below the shoe). 2. Circulate the hole to establish a uniform mud density throughout the system. P/U into the shoe. 3. Close the blowout preventer (ram or annular). 4. Pump down the drill stem at 1 /4 to 1 /2 bpm. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) vs. drill pipe pressure until appropriate surface pressure is achieved for FIT at shoe. 6. Shut down at required surface pressure. Hold for a minimum 10 minutes or until the pressure stabilizes. Record time vs. pressure in 1-minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. The pre -determined surface pressure for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measures are required. Where required, the LOT is performed in the same fashion as the formation integrity test. Instead of stopping at a pre -determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with an FIT. Page 37 Revision 0 July, 2016 11ilrorp.Ua,ka. L1.1: K-26RD2 Drilling Procedure Rev 0 27.0 Choke Manifold Schematic Choke Manifold Valves 2 " 3" To Shaker 3" Panic To Gasbuster j1/8" 2 1/16"2 1/16" N + co + 1 216" 21/16" t Manual Choke �Ji�\ Automatic Choke 2 1/16" Inlet Pressure Sensor 3" 3" 5,000 PSI Choke Manifold Kuukpik Drilling Rig 5 RED = 3 1/18" 5,000 PSI VALVES AND LINES BLUE = 2 1/16" 5,000 PSI VALVES Kuukpik Drilling Rig 5 Choke Manifold Page 38 Revision 0 July, 2016 28.0 Fluid Flow Diagrams W K-26RD2 Drilling Procedure Rev 0 Page 39 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 Ililcorp .Uaska. 1.1.1: I�p lal<lIa IN I�Iw IN i.. 1%Iw ll�ll�lw lw 11�1~i Page 40 w T v 7 A Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 IIillvrp Alaska.. LLC K S I I 1 1 1 1 1 1 1 Iy ICp 1,f�P�W!♦!u!IJIr I i l l l l l l l IN INq 1 I 1 I I ! I n S s 1 CpIa l Q lw li.lu lHlwlO I f 1 i l l 1 1 1 n� n•n l i i I l i l I tN IN iN i�iN IN I IN N !N!N! IN!N!N!r INIwI� iN I"i�l•O I I I 1 1 1 1 I 1 I I I I 16. I 1 I MCI IS I I If) IN 1�1 Is i 1 1 I,Ip I�I�1AA� f�, I ILL" 1�G1 ly t'e �i�i@i�io°fc 1 iSitj. iq !� t I� 1 I�1� i!tM!�1 ii 1 I 1 1?Iq I I� I I I 11 1 i� 1 I In Inr i I I i l I l i l Page 41 Revision 0 July, 2016 C C pr -C 7C' M 9 In W O. Sh K-26RD2 Drilling Procedure Rev 0 11ilrurp A64a. LIA: 29.0 Offset MW vs. Depth TVD MW vs TVD Offsets X mm 5000 6000 7000 8000 l � 9000 10000 11000 8 Page 42 9 10 11 12 Mud Weight (PPG) Revision 0 13 14 15 July, 2016 11ile-1, .UaAa, LLC K-26RD2 Drilling Procedure Rev 0 30.0 Casing Design Information Calculation & Casing Design Factors Hole Size Hole Size 8-1/2" Hole Size Cook Inlet Offshore DATE: 7/19/2016 WELL: K-26RD2 FIELD: McArthur River DESIGN BY: Monty M Myers Design Criteria: Mud Density: Mud Density: 9.2 ppg Mud Density: Drilling Mode MASP: 2167 psi (See attached MASP determination & calculation) Production Mode MASP: 4235 psi (See attached MASP determination & calculatio Collapse Calculation: Section Calculation 1,2 Normal gradient external stress (0.43 psi/ft) and the casing evacuated for the internal stress Casing Section Calculation/Specification 1 2 3 4 Casing OD 7" Top (MD) 5,800 Top (TVD) 5,185 Bottom (MD) 13,000 Bottom (TVD) 9,849 Length 7,200 Weight (ppf) 29 Grade L-80 Connection DWC/C Weight w/o Bouyancy Factor (Ibs) 208,800 Tension at Top of Section (Ibs) 288,800 Min strength Tension (1000 Ibs) 676 Worst Case Safety Factor (Tension) 2.34 Collapse Pressure at bottom (Psi) 3,841 Collapse Resistance w/o tension (Psi) 7,030 Worst Case Safety Factor (Collapse) 1.83 MASP (psi) 2,167 Minimum Yield (psi) 8,160 Worst case safety factor (Burst) 3.77 Page 43 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 llilrorp Alaska. LI.1: 31.0 8-1/2" Hole Section MASP Maximum Anticipated Surface Pressure Calculation Hi4 8-1/2" Hole Section K-26RD2 Cook Inlet, Alaska MD TVD Planned Top: 6000 5361 Planned TD: 13000 9849 Anticipated Formations and Pressures: Formation TVD Est Pressure Oil/Gas/Wet PPG Grad MKR_3 6,244 2704 Gas/Water 8.3 0.43 MKR_4 6,805 2947 Gas/Water 8.3 0.43 MKR_4_5 61981 3023 Gas/Water 8.3 0.43 MKR_6 7,918 3428 Gas/Water 8.3 0.43 MKR_7_5 8,294 3591 Gas/Water 8.3 0.43 MKR_10 8,523 3690 Gas/Water 8.3 0.43 COAL39 8,975 3886 Gas/Water 8.3 0.43 H1X_FW 9,505 4116 Oil / Water 8.3 0.43 HK1T 9,527 4125 Oil / Water 8.3 0.43 HK2T 9,583 4149 Oil / Water 8.3 0.43 HUT 9,693 4197 Oil/Water 8.3 0.43 TD 9,849 4250 Oil / Water 8.3 0.43 Offset Well Mud Densities Well MW range Tnn fTVnl Rottnm fTVnl DntP A-27RD2 9.3 - 9.5 7,755 9,718 2016 A-27 8.9-9.8 3,360 7,017 1973 A-27RD 9.5 - 9.7 6,328 9,950 1997 K-26RD 9.4- 10.2 7,800 9,971 1995 Assumptions: 1. Anticipated fracture gradient at 5800' TMD (5361' TVD) = 0.7 =13.4 ppg EMW 2. Maximum planned mud density for the 8-1/2" hole section is 9.5 ppg. 3. Calculations assumes 9.2 ppg reservoir contains 2/3 gas, 1/3 water. kv� j b (r Fracture Pressure at window considering a full column of gas from window to surface: 5361(ft) x 0.7(psi/ft)= 3753 3753 (psi) - [0.1(psi/ft)*5361(ft)]= 3217 psi A� MASP from pore pressure; unknown gas sand at To, at 9.2 ppg (0.4784 psi/ft) f f 9849 (ft) x 0.43(psi/ft)= sl Pr�P 4 psi) - [(2/3)*0.1(psi/ft)*9849(ft)]+[(1/3)*0.43(psi/ft)*9849(ft)]= psi Drilling MASP Summary: A,&-7 d" S 1. MASP while drilling 8" hole is governed by pore pressure minus 2/3 of wellbore evacuated to gas (remaining 1/3 remains 9.2 ppg drilling fluid) Page 44 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 32.0 Plot (NAD 27) (Governmental Sections) 4 1 A-27RIIBta/ v „ 1 !, 1 1 1 • 1 t3 ADLO18731 / A-27RD2PS1OHL K-26 BH!�! numa[ one �\ �! R02 BHL 1 1 1 K-2�RD BHL \l ` � � K-22 BHL 1 1 • 1 Ilk at\,".��Q19r7 ADL'0.17594 Legend !/ • Surface Hole Location ,�_ _ (� �' f/ / • Bottom Hole Location r ! --— Well Paths S009N013W Sec. 16 0 840 1.680 UK26RD WP03 Feet _ A Alaska State Plane Zone 4. NA027 IIJ.—J, %NlL.' ITI Map Date: 7/28/2016 Page 45 Revision 0 July, 2016 L11 33.0 Slot Diagram (As Built) (NAD 27) K-26RD2 Drilling Procedure Rev 0 CENTER LEG 4 LAT: 60' 51' 55.88%'N LON. 151' 36 21.1490'W CENTER LEG 1 N: 2511794.345' LAT: 60' 51' 19.9419'N E: 213761.651' LON: IS 36' 19.8893W ASP ZONE 4 NAD 27 N: 2511756.503' CJiO E: 213820S 19* 2 ASP ZONE 4 NAD 27 K.2 7aRD� JUB 180'FEL K IRD i K Ig KING SALMON PLATFORM K_;" K.12N0 ASBUILT WELL LOCATIONS K t.l. SECTION 16, T9N. R13W. S.M., AK K K J: uD / W IWLL SIDI. TIKS L1.' CENTER LEG 3 LAT: 60° 51' 55.1292'N 22T FEL LON: 15V 36' 22.1035"W N'. 2511719, 224' E: 213712, 532' ASP ZONE 4 NAD 27 ' Kaa 167'FEL I CENTER LEG 2 LAT: 60' 51' 54.7696'N LON: 151' 36' 20.9005'W N: 2511681.260' 726' FSL (N ) E 213771.191' ASP ZONE 4 NAD 27 650'FSL(NTS) I 690'FSL(NTS) 614' FSL (NTS) ED NOTES 1. BASIS OF HORIZONTAL CONTROL: NAD83 US FEET POSITION (EPOCH 2O10) AND VERTICAL CONTROL (NAVD88) IS AN OPUS SOLUTION FROM NGS STATIONS KEN5, AC51 AND AC23 TO ESTABLISH POINT 4300. THE ALASKA STATE PLANE COORDINATES NAD 83 ZONE 4 IN FEET ARE: N = 2511443.373 E = 1353731.256 ELEV. = 99.189 (NAVD88) 2. SECTION LINES SHOWN ARE EXTENSIONS OF PROTRACTED VALUES. 3. DATUM TRANSFORMATIONS (NAD83 ASPZ4 TO NAD27 ASPZ4) WERE DONE USING CORPSCON SOFTWARE VERSION 6.0.1. f UF YUNEEM INAPPIIgIsupE No1TEST G P 0 am -A s0=7WI AK. wow I'CICE 1"70243-.218 FM (907)281-e EMAL S.UKiMiBLIOAW0GCAM FIiIT'url7 AlaAku. Hk SECTION CORNER (PROTRACTED) N 2511063.548' — E:213922.79Z LINE NOT TO SCALE (NTS) r'AN� SCALE o so FEET "pa"" MILUORP ALASKA, LLL: KING SALMON PLATFORM WELLS COOK INLET ALASKA AS BUILT SURFACE LOCATION NAD 27 PROTRACTED SEC. 16 T09N R13W SEWARD MERIDIAN, ALASKA Page 46 Revision 0 July, 2016 w Z 71 Z O F- U w w U Q F- F— O cc 0. ti� Ili 2+ zz DATE: 67p'ta DRAWN BY ice SCALE 1•-W PROJECT N0. i4wai BOOK NO 14 SHEET -2 Ililcorp VaAa.. L1.1: K-26RD2 Drilling Procedure Rev 0 slot #1 Well # NAD 27 Northing Easting Latitude Longitude Center Leg 1 2511756.503 213820.519 60' 51' 55.52222" -151' 36' 19.94191" 1 K-21RD 2511751.133 213822.994 60' 51' 55.46995" -151' 36' 19.88928" Leg 1 2 K-30 2511750.754 213819.220 60' 51' 55.46531" -151' 36' 19.96528" 3 K-18RD 2511753.106 213815.860 60' 51' 55.48766" -151` 36' 20.03428" 4 K-17 2511757.623 213814.976 60' 51' 55.53191" -151' 36' 20.05437" 5 K-23 2511761.085 213816.638 60' 51' 55.56639" -151' 36' 20.02253" 6 K-19 2511761.888 213820.828 60' 51' 55.57531" -151' 36' 19.93833" 7 K-22RD 2511759.441 213825.218 60' 51' 55.55228" -151' 36' 19.84850" 8 K-20 2511754.730 1 213825.531 60' 51' 55.50598" 1 -151' 36' 19.83984" Center Leg 2 2511681.260 213771.191 60' 51' 54.76960" -151' 36' 20.90053" 9 K-15RD 2511676.516 213774.559 60' 51' 54.72372" -151' 36' 20.83019" 10 K-9 2511675.411 213770.205 60' 51' 54.71178" 151' 36' 20.91754" Leg 2 11 K-4RD 2511678.297 213765.971 60' 51' 54.73918" 151' 36' 21.00445" 12 K-11 2511682.498 213765.183 60' 51' 54.78034" -151' 36' 21.02242" 13 K-13RD2 2511685.931 213767.948 60' 51' 54.81478" -151' 36' 20.97031" 14 K-2RD 2511686.644 213772.096 60' 51' 54.82282" -151' 36' 20.88491" 15 K-7RD 2511684.476 213775.691 60' 51' 54.80235" -151' 36' 20.81128" 16 K-5 2511680.120 213776.722 60' 51' 54.75972" -151' 36' 20.78831" Leg 3 I Center Leg 3 1 2511719.224 213712.532 60- 51- 55.12919" -151- 36- 22.10347" Center Leg 4 2511794.345 213761.651 60' 51' 55.88057" -151' 36' 21.14901" 25 K-26RD 2511789.752 213764.548 60' 51' 55.83605" -151' 36' 21.08827" 26 K-1RD2 2511788.570 213760.661 60' 51' 55.82347" -151' 36' 21.16616" 27 K-1ORD 2511791,323 213757.250 60' 51' 55.84976" 151' 36' 21.23636" Leg 4 28 K-25 2511795.528 213756.002 60' 51' 55.89085" 151' 36' 21.26364" 29 K-12RD2 2511799.318 213758.343 60' 51' 55.92872" 151' 36' 21.21826" 30 K-6RD 2511799.443 213762.467 60' 51' 55.93095" -151' 36' 21.13506" 31 K-24RD2 2511797.672 213766.437 60' 51' 55.91447" -151' 36' 21.05403" 32 K-3RD 2511793.127 213767.529 60' 51' 55.86999" -151' 36' 21.02976" / E110INEERIN01IW.WRY"NOYTEST- V coo Pa Bo. 468 rIM-218 FAX vaM SALICula ECLcmrlx>M ENAE. s.�Ia,�NEn.Ian�ccccow IIi1cor►Alaska,[,[,C PROJECT HILGURP ALASKA, LLG KING SALMON PLATFORM WELLS COOK INLET ALASKA AS BUILT SURFACE LOCATION NAD 27 wylso' DATE f-'X CEtAWN By ice SCALE wA PROJECT W ,-« BOON No U48 LQtATC PROTRACTED SEC. 16 T09N R13W SEWARD MERIDIAN. ALASKA sNEET "` 2 Page 47 Revision 0 July, 2016 K-26RD2 Drilling Procedure Rev 0 Ililcorp V:i,ka.I.I.1: 34.0 Directional Program (wp03) Page 48 Revision 0 July, 2016 Hilcorp Energy Company Trading Bay King Salmon K-26RD (K-08) K-26RD2 Plan: K-26RD2 wp03 Standard Proposal Report 28 July, 2016 HALLIBURTON Sperry Drilling Bervicee HALLI®UATON f Project: Trading Bay WELL DETARS: K-26RD (K-08) NAD 1927 (NADCON CONUS) Alaska Zone 04 Site: King Salmon EM Sperry Drilling Well: K-26RD (K-08) +FJ-W Wellbore: K-26RD2 Water Depth: 62.00 Northing Fasting I60.866 Longitude 0.00 Plan: K-26RD2 wp03 0.00 0.00 2511789.76 213764.55 60.866-15L606 3333 REFERENCE INFORMATION 4000 doo0. KOP: Start Dir 13.561/100' : 6000' MD, 5360.717VD : 60' LT TF Co-ordinate (N/E) Reference: Well K-26RD (K-08), True North Vertical (TVD) Reference: WELL @ 100.00usft (Original Well Elev) �p0 Measured Depth Reference: WELL @ 100.00usft (Original Well Elev) 4667 5 ' End Dir : 6016.5' MD, 5375.11' TVD Calculation Method: Minimum Curvature 5333 _ - _ = Start Dir 5°/100' : 6036.5' MD, 5392.48'TVD 6�00 N End Dir : 6612.83' MD, 5916.47' TVD 6000 C) 0 7000 0 N 6667 Start Dir 5°/100' : 8951.96' MD, 8049.33'TVD CL 8000 7333 End Dir : 10943.87' MD, 9510.38' TVD m U 8000- -9000 S.F.<1.0 with A-27RD2 & A-27RD2PB2 2 8667 K26 ~ ,-Total Depth: 13000'MD, 9849.32'TVD 0�0 9333— K- 6RD 10000 K-26RD2 wp3 HKIIT Tgt N o K-26RD2 wp03 ^ M 10667 K-261RD2 wp3 HK3T Tgt ^ 0 667 1333 2000 2667 3333 4000 4667 5333 6000 6667 7333 8000 8667 9333 10000 10667 11333 12000 12667 13333 14000 4767 Vertical Section at 352.37' (2000 usft/in) 4550 �tib 9w9 - - - K-26RD2 wp03 4333 4117 9�ro Total Depth: 13000'MD, 9849.32'TVD 44 K-26RD2 wp3 HUT Tgt 3900 �tib i 3683 S.F.<1.0 with A-27RD2 & A-27RD2PB2 3467 End Dir : 10943.87' MD, 9510.38' TVD 3250 K-26RD2 wp3 HK1T,Tgt 3033 \ 9J 00 °0 2817 End Dir : 6612.83' MD, 5916.47' TVD 2600 92s0 Start Dir 5°/100' : 6036.5' MD, 5392.48'TVD o 2383 - 8750 0 0 0 $ ,' n h5o� End Dir : 6016.5' MD, 5375.11' TVD 2167 r $g00 00 r a, - _ - _ / _ KOP: Start Dir 13.56°/100' : 6000' MD, 5360.7l'TVD : 60° LT TF h ° 1950 - 50 Start Dir 5°/100' : 8951.96' MD, 8049.33'TVD a�g0 1733 A250 1517 -3250 -3033 -2817 -2600 -2383 -2167 -1950 -1733 -1517 -1300 -1083 -867 -650 -433 -217 0 217 433 650 867 1083 1300 West( -)/East(+) (650 usft/in) HALLIBURTON Database: Sperry EDM - NORTH US + CANADA Company: Hilcorp Energy Company Project: Trading Bay Site: King Salmon Well: K-26RD (K-08) Wellbore: K-26RD2 Design: K-26RD2 wp03 Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Halliburton Standard Proposal Report Well K-26RD (K-08) WELL @ 100.00usft (Original Well Elev) WELL @ 100.00usft (Original Well Elev) True Minimum Curvature Project Trading Bay 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 Site King Salmon Site Position: Northing: 2,511,786.28usft Latitude: 60.866 From: Map Easting: 213,756.95usft Longitude: -151.606 Position Uncertainty: 0.00 usft Slot Radius: 13-3/16" Grid Convergence: -1.40 ° Well K-26RD (K-08) Well Position +N/S 0.00 usft Northing: 2,511,789.76 usft Latitude: 60.866 +E/-W 0.00 usft Easting: 213,764.55 usft _ Longitude: -151.606 Position Uncertainty 0.00 usft Wellhead Elevation: 62.00 usft Water Depth: 62.00 usft Wellbore K-26RD2 Magnetics Model Name Sample Date Declination Dip Angle Field Strength BGGM2015 6/21/2016 16.20 73.70 55,480 Design K-26RD2 wp03 - Audit Notes: Version: Phase: PLAN Tie On Depth: 6,000.00 Vertical Section: Depth From (TVD) +N/-S +E/-W Direction (usft) (usft) (usft) (I 0.00 0.00 0.00 352.37 Plan Sections Measured Vertical TVD Dogleg Build Turn Depth Inclination Azimuth Depth System +N/S +E/-W Rate Rate Rate Tool Face (usft) (°) (°) (usft) usft (usft) (usft) (°/100usft) (°1100usft) (°/100usft) (°) 6,000.00 28.59 331.63 5,360.71 5,260.71 2,092.08 -1,211.29 0.00 0.00 0.00 0.00 6,016.50 29.77 327.73 5,375.11 5,275.11 2,099.02 -1,215.36 13.56 7.13 -23.67 -60.00 1 6,036.50 29.77 327.73 5,392.48 5,292.48 2,107.41 -1,220.66 0.00 0.00 0.00 0.00 6,612.83 24.24 262.27 5,916.47 5,816.47 2,214.73 1,418.47 5.00 0.96 11.36 129.20 8,951.96 24.24 262.27 8,049.33 7,949.33 2,085.49 -2,370.16 0.00 0.00 0.00 0.00 10,913.64 79.00 43.58 9,505.00 9,405.00 2,951.33 -2,013.90 5.00 2.79 7.20 141.70 10,943.87 80.51 43.58 9,510.38 9,410.38 2,972.88 -1,993.39 5.00 5.00 0.00 0.00 11,918.25 80.51 43.58 9,671.00 9,571.00 3,669.06 -1,330.87 0.00 0.00 0.00 0.00 13,000.00 80.51 43.58 9,849.32 9,749.32 4,441.97 -595.34 0.00 0.00 0.00 0.00 712812016 10:53:12AM Page 2 COMPASS 5000.1 Build 81 Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Well K-26RD (K-08) Company: Hilcorp Energy Company ND Reference: WELL @ 100.00usft (Original Well Elev) Project: Trading Bay MD Reference: WELL @ 100.00usft (Original Well Elev) Site: King Salmon North Reference: True Well: K-26RD (K-08) Survey Calculation Method: Minimum Curvature Wellbore: K-26RD2 Design: K-26RD2 wp03 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +Nl-S +El-W Northing Easting DLS Vert Section (usft) V) V) (usft) usft (usft) (usft) (usft) (usft)-100.00 0.00 0.00 0.00 0.00 -100.00 0.00 0.00 2,511,789.76 213,764.55 0.00 0.00 25.00 0.02 109.70 25.00 -75.00 0.00 0.00 2,511,789.75 213,764.55 0.07 0.00 50.00 0.03 109.70 50.00 -50.00 -0.01 0.01 2,511,789.75 213,764.56 0.07 -0.01 75.00 0.05 109.70 75.00 -25.00 -0.01 0.03 2,511,789.74 213,764.58 0.07 -0.02 100.00 0.07 109.70 100.00 0.00 -0.02 0.06 2,511,789.73 213,764.60 0.07 -0.03 125.00 0.05 87.79 125.00 25.00 -0.03 0.08 2,511,789.73 213,764.63 0.12 -0.04 150.00 0.05 54.99 150.00 50.00 -0.02 0.10 2,511,789.73 213,764.65 0.12 -0.03 175.00 0.06 26.26 175.00 75.00 0.00 0.12 2,511,789.75 213,764.67 0.12 -0.02 200.00 0.08 9.42 200.00 100.00 0.03 0.13 2,511,789-78 213,764.67 0.12 0.01 225.00 0.08 6.37 225.00 125.00 0.06 0.13 2,511,789.82 213,764.68 0.03 0.05 250.00 0.09 3.66 250.00 150.00 0.10 0.13 2,511,789.85 213,764.68 0.03 0.08 275.00 0.09 1.23 275.00 175.00 0.14 0.14 2,511,789.89 213,764.69 0.03 0.12 300.00 0.10 359.05 300.00 200.00 0.18 0.14 2,511,789.94 213,764.69 0.03 0.16 325.00 0.28 68.33 325.00 225.00 0.23 0.19 2,511,789.98 213,764.75 1.06 0.20 350.00 0.54 78.36 350.00 250.00 0.27 0.37 2,511,790.02 213,764.92 1.06 0.22 I 375.00 0.80 81.89 375.00 275.00 0.32 0.65 2,511,790.06 213,765.21 1.06 0.23 400.00 1.06 83.68 399.99 299.99 0.37 1.05 2,511,790.10 213,765.61 1.06 0.23 425.00 0.99 135.72 424.99 324.99 0.24 1.44 2,511,789.96 213,765.99 3.61 0.05 450.00 1.14 152.50 449.99 349.99 -0.20 1.68 2,511,789.51 213,766.22 1.37 -0.42 475.00 0.83 128.68 474.98 374.98 -0.54 1.93 2,511,789.17 213,766.47 2.03 -0.79 500.00 0.68 120.58 499.98 399.98 -0.68 2.23 2,511,789.02 213,766.76 0.73 -0.97 525.00 0.87 171.12 524.98 424.98 -0.94 2.38 2,511,788.76 213,766.91 2.72 -1.25 550.00 1.40 193.02 549.97 449.97 -1.42 2.34 2,511,788.28 213,766.86 2.72 -1.72 575.00 1.80 208.41 574.96 474.96 -2.08 2.09 2,511,787.63 213,766.59 2.33 -2.34 600.00 2.25 219.04 599.95 499.95 -2.80 1.60 2,511,786.91 213,766.07 2.32 -2.99 625.00 2.93 225.81 624.92 524.92 -3.61 0.84 2,511,786.12 213,765.30 2.98 -3.69 650.00 3.83 229.64 649.88 549.88 -4.60 -0.25 2,511,785.16 213,764.18 3.73 -4.53 675.00 4.75 232.00 674.81 574.81 -5.78 -1.70 2,511,784.02 213,762.70 3.73 -5.50 700.00 5.66 238.79 699.71 599.71 -7.05 -3.57 2,511,782.79 213,760.80 4.40 6.52 725.00 6.63 243.65 724.56 624.56 -8.33 -5.92 2,511,781.57 213,758.42 4.40 -7.47 750.00 7.64 247.26 749.37 649.37 -9.62 -8.75 2,511,780.35 213,755.57 4.40 -8.37 775.00 8.51 251.54 774.12 674.12 -10.88 -12.04 2,511,779.17 213,752.24 4.23 -9.18 800.00 9.21 257.24 798.82 698.82 -11.91 -15.75 2,511,778.24 213,748.51 4.50 -9.71 825.00 9.99 262.11 823.47 723.47 -12.65 -19.84 2,511,777.60 213,744.40 4.50 -9.90 850.00 10.83 266.25 848.06 748.06 -13.10 -24.34 2,511,777.26 213,739-90 4.50 -9.75 875.00 11.11 271.48 872.60 772.60 -13.20 -29.11 2,511,777.27 213,735.12 4.14 -9.22 900.00 11.34 276.91 897.12 797.12 -12.84 -33.96 2,511,777.75 213,730.28 4.33 -8.22 925.00 11.67 282.09 921.62 821.62 -12.02 -38.87 2,511,778.69 213,725.39 4.33 -6.75 950.00 12.08 286.95 946.08 846.08 -10.73 -43.85 2,511,780.10 213,720.45 4.33 -4.81 975.00 12.57 291.47 970.51 870.51 -8.97 -48.88 2,511,781.99 213,715.46 4.33 -2.40 1,000.00 12.85 295.07 994.89 894.89 -6.78 -53.94 2,511,784.29 213,710.45 3.36 0.44 1,025.00 13.09 298.36 1,019.25 919.25 -4.26 -58.95 2,511,786.94 213,705.51 3.10 3.61 1,050.00 13.36 301.53 1,043.59 943.59 -1.41 -63.90 2,511,789.91 213,700.63 3.10 7.10 1,075.00 13.67 304.56 1,067.90 967.90 1.78 -68.80 2,511,793.22 213,695.81 3.10 10.90 1,100.00 13.71 308.52 1,092.19 992.19 5.30 -73.56 2,511,796.86 213,691.14 3.75 15.03 712812016 10:53:12AM Page 3 COMPASS 5000.1 Build 81 HALLIBURTON Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Company: Hilcorp Energy Company ND Reference: Project: Trading Bay MD Reference: Site: King Salmon North Reference: Well: K-26RD (K-08) Survey Calculation Method: Wellbore: K-26RD2 Design: K-26RD2 wp03 Planned Survey Halliburton Standard Proposal Report Well K-26RD (K-08) WELL @ 100.00usft (Original Well Elev) WELL @ 100.00usft (Original Well Elev) True Minimum Curvature Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting (usft) V) V) (usft) usft (usft) (usft) (usft) (usft) 1,125.00 13.79 312.54 1,116.47 1,016.47 9.16 -78.07 2,511,800.83 213,686.72 1,150.00 13.93 316.49 1,140.75 1,040.75 13.36 -82.34 2,511,805.12 213,682.56 1,175.00 14.13 320.26 1,165.00 1,065.00 17.89 -86.35 2,511,809.75 213,678.66 1,200.00 14.43 323.18 1,189.23 1,089.23 22.73 -90.17 2,511,814.69 213,674.96 1,225.00 14.77 325.98 1,213.42 1,113.42 27.87 -93.82 2,511,819.91 213,671.43 1,250.00 15.13 328.66 1,237.58 1,137.58 33.29 -97.30 2,511,825.42 213,668.09 1,275.00 15.61 330.60 1,261.68 1,161.68 39.01 -100.63 2,511,831.22 213,664.91 1,300.00 16.28 331.21 1,285.72 1,185.72 45.01 -103.96 2,511,837.30 213,661.72 1,325.00 16.94 331.77 1,309.68 1,209.68 51.29 -107.37 2,511,843.66 213,658.46 1,350.00 17.61 332.28 1,333.55 1,233.55 57.85 -110.86 2,511,850.30 213,655.14 1,375.00 18.31 332.19 1,357.34 1,257.34 64.68 -114.43 2,511,857.21 213,651.74 1,400.00 19.05 331.67 1,381.02 1,281.02 71.74 -118.20 2,511,864.37 213,648.14 1,425.00 19.80 331.19 1,404.59 1,304.59 79.04 -122.17 2,511,871.77 213,644.34 1,450.00 20.54 330.74 1,428.06 1,328.06 86.58 -126.36 2,511,879.40 213,640.35 1,475.00 21.28 330.32 1,451.41 1,351.41 94.35 -130.75 2,511,887.27 213,636.15 1,500.00 22.02 330.10 1,474.65 1,374.65 102.35 -135.34 2,511,895.39 213,631.76 1,525.00 22.76 330.10 1,497.77 1,397.77 110.60 -140.09 2,511,903.76 213,627.21 1,550.00 23.49 330.10 1,520.76 1,420.76 119.11 -144.98 2,511,912.38 213,622.53 1,575.00 24.22 330.10 1,543.62 1,443.62 127.88 -150.02 2,511,921.27 213,617.70 1,600.00 24.81 330.21 1,566.36 1,466.36 136.88 -155.19 2,511,930.40 213,612.76 1,625.00 25.35 330.35 1,589.01 1,489.01 146.09 -160.44 2,511,939.73 213,607.73 1,650.00 25.89 330.49 1,611.55 1,511.55 155.49 -165.78 2,511,949.25 213,602.63 1,675.00 26.42 330.62 1,633.99 1,533.99 165.08 -171.19 2,511,958.98 213,597.45 1,700.00 26.96 330.75 1,656.32 1,556.32 174.87 -176.69 2,511,968.90 213,592.19 1,725.00 27.45 330.67 1,678.56 1,578.56 184.85 -182.28 2,511,979.01 213,586.85 1,750.00 27.91 330.44 1,700.70 1,600.70 194.96 -187.99 2,511,989.26 213,581.39 1,775.00 28.36 330.23 1,722.74 1,622.74 205.21 -193.82 2,511,999.65 213,575.81 1,800.00 28.81 330.01 1,744.69 1,644.69 215.58 -199.78 2,512,010.16 213,570.10 1,825.00 29.26 329.81 1,766.55 1,666.55 226.08 -205.86 2,512,020.80 213,564.28 1,850.00 29.63 329.53 1,788.32 1,688.32 236.69 -212.07 2,512,031.57 213,558.33 1,875.00 29.91 329.19 1,810.02 1,710.02 247.37 -218.40 2,512,042.40 213,552.27 1,900.00 30.19 328.85 1,831.66 1,731.66 258.11 -224.84 2,512,053.29 213,546.09 1,925.00 30.46 328.51 1,853.24 1,753.24 268.89 -231.41 2,512,064.23 213,539.79 1,950.00 30.74 328.18 1,874.75 1,774.75 279.72 -238.08 2,512,075.22 213,533.38 1,975.00 30.91 328.03 1,896.22 1,796.22 290.60 -244.87 2,512,086.27 213,526.87 2,000.00 30.93 328.08 1,917.66 1,817.66 301.50 -251.67 2,512,097.33 213,520.34 2,025.00 30.95 328.14 1,939.11 1,839.11 312.42 -258.45 2,512,108.41 213,513.82 2,050.00 30.97 328.20 1,960.55 1,860.55 323.34 -265.24 2,512,119.50 213,507.31 2,075.00 30.99 328.26 1,981.98 1,881.98 334.28 -272.01 2,512,130.60 213,500.80 2,100.00 31.03 328.37 2,003.41 1,903.41 345.24 -278.78 2,512,141.71 213,494.31 2,125.00 31.13 328.60 2,024.82 1,924.82 356.24 -285.52 2,512,152.88 213,487.83 2,150.00 31.23 328.82 2,046.21 1,946.21 367.30 -292.25 2,512,164.10 213,481.38 2,175.00 31.33 329.04 2,067.57 1,967.57 378.42 -298.95 2,512,175.38 213,474.95 2,200.00 31.43 329.26 2,088.92 1,988.92 389.60 -305.62 2,512,186.72 213,468.55 2,225.00 31.48 329.40 2,110.24 2,010.24 400.83 -312.28 2,512,198.11 213,462.18 DLS Vert Section 1,016.47 3.83 3.83 3.74 3.12 3.12 3.12 2.82 2.74 2.74 2.74 2.83 3.04 3.04 3.04 3.04 2.98 2.93 2.93 2.93 2.35 2.17 2.17 2.17 2.17 1.97 1.86 1.86 1.86 1.86 1.57 1.30 1.30 1.30 1.30 0.73 0.14 0.14 0.14 0.14 0.29 0.61 0.61 0.61 0.61 0.35 19.45 24.18 29.20 34.51 40.08 45.92 52.03 58.43 65.10 72.06 79.30 86.81 94.57 102.60 110.88 119.42 128.23 137.32 146.68 156.29 166.10 176.13 186.36 196.80 207.43 218.21 229.14 240.21 251.42 262.77 274.19 285.69 297.25 308.87 320.56 332.26 343.98 355.71 367.45 379.21 391.01 402.87 414.78 426.74 438.76 712812016 10.53:12AM Page 4 COMPASS 5000.1 Build 81 Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Well K-26RD (K-08) Company: Hilcorp Energy Company TVD Reference: WELL @ 100.00usft (Original Well Elev) Project: Trading Bay MD Reference: WELL @ 100.00usft (Original Well Elev) Site: King Salmon North Reference: True Well: K-26RD (K-08) Survey Calculation Method: Minimum Curvature Wellbore: K-26RD2 Design: K-26RD2 wp03 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (usft) V) V) (usft) usft (usft) (usft) (usft) (usft) 2,031.56 2,250.00 31.43 329.40 2,131.56 2,031.56 412.06 -318.92 2,512,209.50 213,455.81 0.21 450.77 2,275.00 31.38 329.40 2,152.90 2,052.90 423.27 -325.55 2,512,220.87 213,449.46 0.21 462.76 2,300.00 31.32 329.40 2,174.25 2,074.25 434.47 -332.17 2,512,232.22 213,443.11 0.21 474.74 2,325.00 31.39 329.40 2,195.61 2,095.61 445.65 -338.79 2,512,243.57 213,436.77 0.24 486.71 2,350.00 31.55 329.40 2,216.93 2,116.93 456.89 -345.43 2,512,254.96 213,430.41 0.66 498.73 2,375.00 31.72 329.40 2,238.21 2,138.21 468.17 -352.10 2,512,266.41 213,424.01 0.66 510.80 2,400.00 31.88 329.40 2,259.46 2,159.46 479.51 -358.81 2,512,277.91 213,417.58 0.66 522.93 2,425.00 31.97 329.47 2,280.68 2,180.68 490.90 -365.53 2,512,289.45 213,411.14 0.40 535.10 2,450.00 32.05 329.55 2,301.88 2,201.88 502.32 -372.26 2,512,301.04 213,404.70 0.37 547.32 2,475.00 32.13 329.64 2,323.06 2,223.06 513.77 -378.98 2,512,312.65 213,398.26 0.37 559.56 2,500.00 32.17 329.72 2,344.22 2,244.22 525.26 -385.70 2,512,324.30 213,391.82 0.24 571.84 2,525.00 32.04 329.83 2,365.40 2,265.40 536.74 -392.39 2,512,335.94 213,385.41 0.58 584.11 2,550.00 31.90 329.94 2,386.60 2,286.60 548.19 -399.03 2,512,347.55 213,379.05 0.58 596.34 2,575.00 31.77 330.04 2,407.84 2,307.84 559.61 -405.63 2,512,359.13 213,372.74 0.58 608.54 2,600.00 31.67 330.14 2,429.11 2,329.11 571.01 -412.18 2,512,370.68 213,366.47 0.44 620.70 2,625.00 31.62 330.22 2,450.39 2,350.39 582.39 -418.70 2,512,382.22 213,360.23 0.28 632.84 2,650.00 31.56 330.31 2,471.69 2,371.69 593.76 -425.20 2,512,393.74 213,354.01 0.28 644.98 2,675.00 31.51 330.39 2,493.00 2,393.00 605.12 -431.67 2,512,405.26 213,347.82 0.28 657.10 2,700.00 31.33 330.40 2,514.33 2,414.33 616.45 -438.11 2,512,416.75 213,341.66 0.69 669.19 2,725.00 31.15 330.40 2,535.70 2,435.70 627.73 -444.51 2,512,428.18 213,335.54 0.75 681.21 2,750.00 30.96 330.40 2,557.12 2,457.12 638.94 -450.88 2,512,439.54 213,329.44 0.75 693.17 2,775.00 30.83 330.43 2,578.58 2,478.58 650.09 -457.22 2,512,450.85 213,323.38 0.53 705.07 2,800.00 30.98 330.59 2,600.03 2,500.03 661.27 -463.54 2,512,462.17 213,317.34 0.71 716.98 2,825.00 31.14 330.74 2,621.45 2,521.45 672.51 -469.86 2,512,473.57 213,311.30 0.71 728.97 2,850.00 31.14 330.58 2,642.84 2,542.84 683.80 -476.19 2,512,485.01 213,305.25 0.35 741.00 2,875.00 31.04 330.23 2,664.25 2,564.25 695.02 -482.56 2,512,496.38 213,299.15 0.83 752.97 2,900.00 30.98 330.14 2,685.68 2,585.68 706.19 -488.97 2,512,507.70 213,293.01 0.29 764.89 2,925.00 30.94 330.20 2,707.11 2,607.11 717.35 -495.37 2,512,519.01 213,286.89 0.19 776.79 2,935.00 30.93 330.23 2,715.69 2,615.69 721.81 -497.92 2,512,523.54 213,284.44 0.19 781.56 13 3/8" 2,950.00 30.91 330.27 2,728.56 2,628.56 728.50 -501.75 2,512,530.32 213,280.78 0.19 788.70 2,975.00 30.87 330.33 2,750.01 2,650.01 739.65 -508.11 2,512,541.62 213,274.70 0.19 800.59 3,000.00 30.84 330.39 2,771.47 2,671.47 750.79 -514.45 2,512,552.92 213,268.63 0.19 812.48 3,025.00 30.80 330.46 2,792.94 2,692.94 761.93 -520.77 2,512,564.21 213,262.59 0.19 824.36 3,050.00 30.77 330.52 2,814.42 2,714.42 773.07 -527.07 2,512,575.50 213,256.56 0.19 836.24 3,075.00 30.74 330.59 2,835.91 2,735.91 784.20 -533.36 2,512,586.78 213,250.55 0.19 848.10 3,100.00 30.70 330.65 2,857.40 2,757.40 795.33 -539.62 2,512,598.06 213,244.56 0.19 859.97 3,125.00 30.67 330.71 2,878.90 2,778.90 806.45 -545.87 2,512,609.33 213,238.58 0.19 871.82 3,150.00 30.63 330.78 2,900.40 2,800.40 817.57 -552.10 2,512,620.60 213,232.63 0.19 883.67 3,175.00 30.60 330.84 2,921.92 2,821.92 828.69 -558.31 2,512,631.86 213,226.69 0.19 895.51 3,200.00 30.56 330.91 2,943.44 2,843.44 839.80 -564.50 2,512,643.12 213,220.78 0.19 907.34 3,225.00 30.53 330.97 2,964.97 2,864.97 850.91 -570.67 2,512,654.38 213,214.88 0.19 919.17 3,250.00 30.50 331.04 2,986.51 2,886.51 862.01 -576.82 2,512,665.63 213,209.00 0.19 930.99 3,275.00 30.46 331.10 3,008.06 2,908.06 873.11 -582.96 2,512,676.87 213,203.14 0.19 942.81 3,300.00 30.43 331.17 3,029.61 2,929.61 884.20 -589.07 2,512,688.11 213,197.30 0.19 954.61 712812016 10:53:12AM Page 5 COMPASS 5000.1 Build 81 Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Well K-26RD (K-08) Company: Hilcorp Energy Company ND Reference: WELL @ 100.00usft (Original Well Elev) Project: Trading Bay MD Reference: WELL @ 100.00usft (Original Well Elev) Site: King Salmon North Reference: True Well: K-26RD (K-08) Survey Calculation Method: Minimum Curvature Welibore: K-26RD2 Design: K-26RD2 wp03 Planned Survey -- Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +Nl-S +E/-W Northing Easting DLS Vert Section (usft) (°) (°) (usft) usft (usft) (usft) (usft) (usft) 2,951.17 3,325.00 30.39 331.23 3,051.17 2,951.17 895.29 -595.17 2,512,699.35 213,191.48 0.19 966.42 3,350.00 30.36 331.30 3,072.74 2,972.74 906.37 -601.24 2,512,710.58 213,185.67 0.19 978.21 3,375.00 30.32 331.36 3,094.31 2,994.31 917.45 -607.30 2,512,721.80 213,179.89 0.19 990.00 3,400.00 30.29 331.43 3,115.90 3,015.90 928.53 -613.34 2,512,733.02 213,174.12 0.19 1,001.78 3,425.00 30.26 331.50 3,137-49 3,037.49 939.60 -619.36 2,512,744.24 213,168.37 0.19 1,013.55 3,450.00 30.22 331.56 3,159.09 3,059.09 950.67 -625.37 2,512,755.45 213,162.64 0.19 1,025.32 3,475.00 30.19 331.63 3,180.69 3,080.69 961.73 -631.35 2,512,766.66 213,156.93 0.19 1,037.08 3,500.00 30.15 331.69 3,202.31 3,102.31 972.79 -637.31 2,512,777.86 213,151.24 0.19 1,048.83 3,525.00 30.12 331.76 3,223.93 3,123.93 983.85 -643.26 2,512,789.05 213,145.57 0.19 1,060.58 3,550.00 30.19 331.80 3,245.55 3,145.55 994.90 -649.19 2,512,800.25 213,139.91 0.28 1,072.32 3,575.00 30.40 331.80 3,267.14 3,167.14 1,006.02 -655.15 2,512,811.51 213,134.22 0.86 1,084.13 3,600.00 30.62 331.80 3,288.67 3,188.67 1,017.20 -661.15 2,512,822.84 213,128.50 0.86 1,096,01 3,625.00 30.84 331.80 3,310.17 3,210.17 1,028.46 -667.18 2,512,834.24 213,122.74 0.86 1,107.97 3,650.00 31.05 331.80 3,331.61 3,231.61 1,039.79 -673.26 2,512,845.71 213,116.95 0.86 1,120.01 3,675.00 31.27 331.80 3,353.00 3,253.00 1,051.19 -679.37 2,512,857.26 213,111.11 0.86 1,132.12 3,700.00 31.48 331.80 3,374.34 3,274.34 1,062.66 -685.52 2,512,868.88 213,105.25 0.86 1,144.31 3,725.00 31.70 331.80 3,395.64 3,295.64 1,074.20 -691.71 2,512,880.57 213,099.34 0.86 1,156.57 3,750.00 31.85 332.08 3,416.89 3,316.89 1,085.82 -697.90 2,512,892.33 213,093.44 0.84 1,168.90 3,775,00 32,00 332,35 3,438,11 3,338.11 1,097,51 -704.07 2,512,904.18 213,087.56 0.84 1,181.32 3,800.00 32.15 332.63 3,459.30 3,359.30 1,109.29 -710.20 2,512,916.10 213,081.72 0.84 1,193.80 3,825.00 32.30 332.90 3,480.44 3,380.44 1,121.14 -716.30 2,512,928.10 213,075.91 0.84 1,206.36 3,850.00 32.41 332.90 3,501.56 3,401.56 1,133.05 -722.39 2,512,940.15 213,070.11 0.43 1,218.97 3,875.00 32.52 332.90 3,522.66 3,422.66 1,145-00 -728.51 2,512,952.24 213,064.29 0.43 1,231.62 3,900.00 32.62 332.90 3,543.73 3,443.73 1,156.98 -734.64 2,512,964.37 213,058.46 0.43 1,244.31 3,925.00 32.73 332.90 3,564.77 3,464.77 1,168.99 -740.78 2,512,976.53 213,052.60 0.43 1,257.04 3,950.00 32.84 332.92 3,585.79 3,485.79 1,181.05 -746.95 2,512,988.73 213,046.73 0.45 1,269.80 3,975.00 32.96 332.98 3,606.78 3,506.78 1,193.14 -753.13 2,513,000.98 213,040-86 0.50 1,282.61 4,000.00 33.09 333.04 3,627.74 3,527.74 1,205.28 -759.31 2,513,013.26 213,034.97 0.50 1,295.47 4,025.00 33.21 333.10 3,648.67 3,548.67 1,217.47 -765.50 2,513,025.60 213,029.08 0.50 1,308.37 4,050.00 33.33 333.16 3,669.57 3,569.57 1,229.70 -771.70 2,513,037.98 213,023.19 0.50 1,321.32 4,075.00 33.47 333.22 3,690.45 3,590.45 1,241.98 -777.90 2,513,050.41 213,017.28 0.59 1,334.31 4,100.00 33.65 333.26 3,711.28 3,611.28 1,254.32 -784.13 2,513,062.90 213,011.36 0.73 1,347.37 4,125.00 33.84 333.30 3,732.06 3,632.06 1,266.73 -790.37 2,513,075.45 213,005.43 0.73 1,360.49 4,150.00 34.02 333.34 3,752.81 3,652.81 1,279.20 -796.64 2,513,088.07 212,999.47 0.73 1,373.68 4,175.00 34.20 333.38 3,773.51 3,673.51 1,291.73 -802.92 2,513,100.75 212,993.49 0.73 1,386.94 1 4,200.00 34.20 333.42 3,794.17 3,694.17 1,304.31 -809.22 2,513,113.48 212,987.50 0.09 1,400.24 4,225.00 33.98 333.46 3,814.88 3,714.88 1,316.84 -815.49 2,513,126.17 212,981.54 0.89 1,413.50 4,250.00 33.76 333.50 3,835.63 3,735.63 1,329.31 -821.71 2,513,138.78 212,975.63 0.89 1,426.68 1 4,275.00 33.54 333.54 3,856-45 3,756.45 1,341-71 -827.89 2,513,151.33 212,969-75 0.89 1,439.79 4,300.00 33.32 333.58 3,877.31 3,777.31 1,354.04 -834.02 2,513,163.80 212,963.93 0.89 1,452.83 4,325.00 33.11 333.56 3,898.23 3,798.23 1,366.30 -840.11 2,513,176.21 212,958.14 0.82 1,465.79 4,350.00 32.92 333.48 3,919.19 3,819.19 1,378.49 -846.18 2,513,188.55 212,952.36 0.76 1,478.68 4,375.00 32.74 333.40 3,940.20 3,840.20 1,390.62 -852.25 2,513,200.82 212,946.60 0.76 1,491.50 4,400.00 32.55 333.31 3,961.25 3,861.25 1,402.67 -858.29 2,513,213.02 212,940.85 0.76 1,504.25 4,425.00 32.37 333.23 3,982.34 3,882.34 1,414-65 -864.33 2,513,225.15 212,935.11 0.76 1,516.93 7/28/2016 10:53:12AM Page 6 COMPASS 5000.1 Build 61 Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Well K-26RD (K-08) Company: Hilcorp Energy Company ND Reference: WELL @ 100.00usft (Original Well Elev) Project: Trading Bay MD Reference: WELL @ 100.00usft (Original Well Elev) Site: King Salmon North Reference: True Well: K-26RD (K-08) Survey Calculation Method: Minimum Curvature Wellbore: K-26RD2 Design: K-26RD2 wp03 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +El-W Northing Easting DLS Vert Section (usft) V) V) (usft) usft (usft) (usft) (usft) (usft) 3,903.48 4,450.00 32.17 333.20 4,003.48 3,903.48 1,426.57 -870.35 2,513,237.20 212,929.39 0.79 1,529.54 4,475.00 31.97 333.20 4,024.67 3,924.67 1,438.42 -876.33 2,513,249.19 212,923.69 0.81 1,542.08 4,500.00 31.77 333.20 4,045.90 3,945.90 1,450.20 -882.28 2,513,261.12 212,918.03 0.81 1,554.55 4,525.00 31.57 333.20 4,067.17 3,967.17 1,461.91 -888.20 2,513,272.97 212,912.40 0.81 1,566.94 4,550.00 31.36 333.20 4,088.50 3,988.50 1,473.56 -894.08 2,513,284.76 212,906.81 0.81 1,579.27 4,575.00 31.22 333.35 4,109.86 4,009.86 1,485.15 -899.93 2,513,296.49 212,901.25 0.67 1,591.54 4,600.00 31.10 333.57 4,131.26 4,031.26 1,496.72 -905.71 2,513,308.20 212,895.76 0.67 1,603.77 4,625.00 30.97 333.79 4,152.68 4,052.68 1,508.28 -911.42 2,513,319.89 212,890.32 0.67 1,615.98 4,650.00 30.85 334.01 4,174.13 4,074.13 1,519.81 -917.07 2,513,331.56 212,884.96 0.67 1,628.16 4,675.00 30.73 334.24 4,195.60 4,095.60 1,531.33 -922.66 2,513,343.21 212,879.66 0.67 1,640.32 4,700.00 30.55 334.30 4,217.11 4,117.11 1,542.81 -928.19 2,513,354.83 212,874.41 0.75 1,652.44 4,725.00 30.34 334.30 4,238.66 4,138.66 1,554.22 -933.68 2,513,366.37 212,869.20 0.84 1,664.48 4,750.00 30.13 334.30 4,260.26 4,160.26 1,565.57 -939.14 2,513,377.84 212,864.02 0.84 1,676.44 4,775.00 29.91 334.30 4,281.91 4,181.91 1,576.84 -944.56 2,513,389.24 212,858.87 0.84 1,688.34 4,800.00 29.70 334.30 4,303.60 4,203.60 1,588.04 -949.95 2,513,400.57 212,853.76 0.84 1,700.15 4,825.00 29.49 334.30 4,325.34 4,225.34 1,599.16 -955.31 2,513,411.82 212,848.68 0.84 1,711.89 4,850.00 29.26 334.24 4,347.12 4,247.12 1,610.21 -960.63 2,513,423.00 212,843.63 0.92 1,723.55 4,875.00 29.02 334.13 4,368.96 4,268.96 1,621.17 -965.93 2,513,434.09 212,838.60 0.99 1,735.12 4,900.00 28.78 334.02 4,390.85 4,290.85 1,632.04 -971.21 2,513,445.08 212,833.58 0.99 1,746.59 4,925.00 28.54 333.91 4,412.78 4,312.78 1,642.81 -976.47 2,513,455.98 212,828.58 0.99 1,757.97 4,950.00 28.30 333.79 4,434.77 4,334.77 1,653.49 -981.72 2,513,466.78 212,823.60 0.99 1,769.25 4,975.00 28.05 333.68 4,456.81 4,356.81 1,664.08 -986.94 2,513,477.50 212,818.64 0.99 1,780.43 5,000.00 27.88 333.58 4,478.89 4,378.89 1,674.57 -992.15 2,513,488.12 212,813.69 0.71 1,791.53 5,025.00 27.83 333.51 4,500.99 4,400.99 1,685.03 -997.35 2,513,498.70 212,808.75 0.22 1,802.59 5,050.00 27.79 333.45 4,523.11 4,423.11 1,695.47 -1,002.56 2,513,509.26 212,803.80 0.22 1,813.62 5,075.00 27.74 333.39 4,545.23 4,445.23 1,705.88 -1,007.77 2,513,519.80 212,798.84 0.22 1,824.64 5,100.00 27.69 333.32 4,567.36 4,467.36 1,716.28 -1,012.99 2,513,530.32 212,793.88 0.22 1,835.63 5,125.00 27.64 333.26 4,589.50 4,489.50 1,726.65 -1,018.20 2,513,540.81 212,788.92 0.22 1,846.60 5,150.00 27.60 333.20 4,611.65 4,511.65 1,736.99 -1,023.42 2,513,551.28 212,783.95 0.21 1,857.55 5,175.00 27.64 333.13 4,633.80 4,533.80 1,747.34 -1,028.66 2,513,561.75 212,778.98 0.21 1,868.50 5,200.00 27.68 333.07 4,655.95 4,555.95 1,757.69 -1,033.91 2,513,572.23 212,773.98 0.20 1,879.45 5,225.00 27.72 333.01 4,678.08 4,578.08 1,768.05 -1,039.18 2,513,582.71 212,768.97 0.20 1,890.42 5,250.00 27.76 332.95 4,700.21 4,600.21 1,778.42 -1,044.46 2,513,593.21 212,763.94 0.20 1,901.40 5,275.00 27.80 332.88 4,722.32 4,622.32 1,788.79 -1,049.77 2,513,603.71 212,758.89 0.20 1,912.39 5,300.00 27.84 332.75 4,744.43 4,644.43 1,799.17 -1,055.10 2,513,614.22 212,753.81 0.27 1,923.38 5,325.00 27.87 332.63 4,766.54 4,666.54 1,809.55 -1,060.46 2,513,624.72 212,748.71 0.27 1,934.38 5,350.00 27.90 332.50 4,788.64 4,688.64 1,819.93 -1,065.84 2,513,635.23 212,743.58 0.27 1,945.38 5,375.00 27.93 332.37 4,810.73 4,710.73 1,830.30 -1,071.26 2,513,645.73 212,738.42 0.27 1,956.39 5,400.00 27.96 332.24 4,832.81 4,732.81 1,840.68 -1,076.71 2,513,656.24 212,733.23 0.27 1,967.39 5,425.00 28.00 332.11 4,854.89 4,754.89 1,851.05 -1,082.18 2,513,666.74 212,728.01 0.27 1,978.40 5,450.00 28.02 332.06 4,876.96 4,776.96 1,861.42 -1,087.68 2,513,677.25 212,722.76 0.14 1,989.41 5,475.00 28.05 332.02 4,899.02 4,799.02 1,871.80 -1,093.19 2,513,687.76 212,717.51 0.13 2,000.43 5,500.00 28.08 331.98 4,921.09 4,821.09 1,882.19 -1,098.71 2,513,698.28 212,712.25 0.13 2,011.46 5,525.00 28.11 331.94 4,943.14 4,843.14 1,892.58 -1,104.24 2,513,708.80 212,706.97 0.13 2,022.49 5,550.00 28.13 331.90 4,965.19 4,865.19 1,902.98 -1,109.79 2,513,719.33 212,701.68 0.13 2,033.53 712812016 10:53:12AM Page 7 COMPASS 5000.1 Build 81 HALLIBURTON Halliburton Standard Proposal Report Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Well K-26RD (K-08) Company: Hilcorp Energy Company TVD Reference: WELL @ 100.00usft (Original Well Elev) Project: Trading Bay MD Reference: WELL @ 100.00usft (Original Well Elev) Site: King Salmon North Reference: True Well: K-26RD (K-08) Survey Calculation Method: Minimum Curvature Wellbore: K-26RD2 Design: K-26RD2 wp03 Planned Survey - - - Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (usft) V) V) (usft) usft (usft) (usft) (usft) (usft) 4,887.23 5,575.00 28.16 331.86 4,987.23 4,887.23 1,913.38 -1,115.35 2,513,729.86 212,696.37 0.13 2,044.58 5,600.00 28.19 331.82 5,009.27 4,909.27 1,923.78 -1,120.92 2,513,740.40 212,691.06 0.13 2,055.64 5,625.00 28.23 331.80 5,031.30 4,931.30 1,934.20 -1,126.50 2,513,750.95 212,685.73 0.18 2,066.70 5,650.00 28.29 331.80 5,053.32 4,953.32 1,944.63 -1,132.10 2,513,761.52 212,680.40 0.23 2,077.78 5,675.00 28.35 331.80 5,075.33 4,975.33 1,955.08 -1,137.70 2,513,772.10 212,675.05 0.23 2,088.89 5,700.00 28.41 331.80 5,097.33 4,997.33 1,965.55 -1,143.32 2,513,782.71 212,669.69 0.23 2,100.01 5,725.00 28.46 331.80 5,119.31 5,019.31 1,976.04 -1,148.94 2,513,793.33 212,664.33 0.23 2,111.15 5,750.00 28.52 331.80 5,141.28 5,041.28 1,986.55 -1,154.58 2,513,803.98 212,658.95 0.23 2,122.32 5,775.00 28.58 331.80 5,163.24 5,063.24 1,997.08 -1,160.22 2,513,814.64 212,653.56 0.23 2,133.51 5,800.00 28.64 331.80 5,185.19 5,085.19 2,007.63 -1,165.88 2,513,825.33 212,648.17 0.23 2,144.71 5,825.00 28.69 331.80 5,207.13 5,107.13 2,018.20 -1,171.55 2,513,836.03 212,642.76 0.23 2,155.94 5,850.00 28.69 331.78 5,229.06 5,129.06 2,028.78 -1,177.22 2,513,846.75 212,637.35 0.05 2,167.18 5,875.00 28.67 331.75 5,250.99 5,150.99 2,039.35 -1,182.89 2,513,857.45 212,631.93 0.08 2,178.41 5,900.00 28.65 331.73 5,272.93 5,172.93 2,049.91 -1,188.57 2,513,868.15 212,626.52 0.08 2,189.63 5,925.00 28.64 331.71 5,294.87 5,194.87 2,060.46 -1,194.25 2,513,878.84 212,621.10 0.08 2,200.85 5,950.00 28.62 331.68 5,316.81 5,216.81 2,071.01 -1,199.93 2,513,889.52 212,615.68 0.08 2,212.05 5,975.00 28.61 331.66 5,338.76 5,238.76 2,081.55 -1,205.61 2,513,900.20 212,610.26 0.08 2,223.25 6,000.00 28.59 331.63 5,360.71 5,260.71 2,092.08 -1,211.29 2,513,910.86 212,604.83 0.08 2,234.45 KOP: Start Dir 13.56*/100' : 6000' MD, 5360.71'TVD : 60° LT TF 6,016.50 29.77 327.73 5,375.11 5,275.11 2,099.02 -1,215.36 2,513,917.90 212,600.94 13.56 2,241.86 End Dir : 6016.5' MD, 5375.11' TVD 6,025.00 29.77 327.73 5,382.49 5,282.49 2,102.59 -1,217.61 2,513,921.52 212,598.78 0.00 2,245.70 6,036.50 29.77 327.73 5,392.48 5,292.48 2,107.41 -1,220.66 2,513,926.42 212,595.85 0.00 2,250.89 Start Dir 5°/100' : 6036.5' MD, 5392.48'TVD 6,050.00 29.34 326.66 5,404.22 5,304.22 2,113.01 -1,224.26 2,513,932.10 212,592.38 5.00 2,256.91 6,075.00 28.58 324.61 5,426.09 5,326.09 2,123.00 -1,231.10 2,513,942.26 212,585.79 5.00 2,267.73 6,100.00 27.86 322.46 5,448.12 5,348.12 2,132.51 -1,238.12 2,513,951.94 212,579.01 5.00 2,278.08 6,125.00 27.17 320.21 5,470.29 5,370.29 2,141.53 -1,245.33 2,513,961.13 212,572.02 5.00 2,287.98 6,150.00 26.51 317.85 5,492.60 5,392.60 2,150.05 -1,252.73 2,513,969.83 212,564.83 5.00 2,297.41 6,175.00 25.90 315.38 5,515.03 5,415.03 2,158.07 -1,260.31 2,513,978.04 212,557.45 5.00 2,306.37 6,200.00 25.33 312.80 5,537.58 5,437.58 2,165.59 -1,268.07 2,513,985.74 212,549.88 5.00 2,314.85 6,225.00 24.81 310.12 5,560.22 5,460.22 2,172.61 -1,276.00 2,513,992.95 212,542.12 5.00 2,322.86 6,250.00 24.33 307.34 5,582.96 5,482.96 2,179.11 -1,284.11 2,513,999.65 212,534.17 5.00 2,330.38 6,275.00 23.91 304.46 5,605.78 5,505.78 2,185.10 -1,292.38 2,514,005.84 212,526.05 5.00 2,337.42 6,300.00 23.55 301.49 5,628.66 5,528.66 2,190.58 -1,300.82 2,514,011.52 212,517.75 5.00 2,343.96 6,325.00 23.24 298.44 5,651.61 5,551.61 2,195.54 -1,309.41 2,514,016.69 212,509.28 5.00 2,350.02 6,350.00 22.99 295.32 5,674.60 5,574.60 2,199.97 -1,318.16 2,514,021.34 212,500.64 5.00 2,355.58 6,375.00 22.81 292.14 5,697.63 5,597.63 2,203.89 -1,327.06 2,514,025.47 212,491.84 5.00 2,360.64 6,400.00 22.69 288.92 5,720.69 5,620.69 2,207.28 -1,336.11 2,514,029.08 212,482.87 5.00 2,365.20 6,425.00 22.63 285.68 5,743.76 5,643.76 2,210.14 -1,345.30 2,514,032.17 212,473.75 5.00 2,369.26 6,450.00 22.64 282.43 5,766.84 5,666.84 2,212.48 -1,354.63 2,514,034.73 212,464.48 5.00 2,372.82 6,475.00 22.71 279.19 5,789.91 5,689.91 2,214.28 -1,364.10 2,514,036.77 212,455.07 5.00 2,375.86 6,500.00 22.85 275.99 5,812.96 5,712.96 2,215.56 -1,373.69 2,514,038.28 212,445.51 5.00 2,378.40 6,525.00 L6 23.06 272.82 5,835.98 5,735.98 2,216.31 -1,383.41 2,514,039.27 212,435.81 5.00 2,380.44 ,550.00 23.32 269.72 5,858.96 5,758.96 2,216.53 -1,393.25 2,514,039.72 212,425.98 5.00 2,381.96 712812016 10:53:12AM Page 8 COMPASS 5000.1 Build 81 HALLIBURTON Database: Sperry EDM - NORTH US + CANADA Company: Hilcorp Energy Company Project: Trading Bay Site: King Salmon Well: K-26RD (K-08) Wellbore: K-26RD2 Design: K-26RD2 wp03 Planned Survey Measured Depth Inclination Azimuth (usft) V) (1) 6,575.00 23.64 266.69 6,600.00 24.02 263.74 6,612.83 24.24 262.27 End Dir : 6612.83' MD, 5916.47' TV 6,625.00 24.24 262.27 6,650.00 24.24 262.27 6,675.00 24.24 262.27 6,700.00 24.24 262.27 6,725.00 24.24 262.27 6,750.00 24.24 262.27 6,775.00 24.24 262.27 6,800.00 24.24 262.27 6,825.00 24.24 262.27 6,850.00 24.24 262.27 6,875.00 24.24 262.27 6,900.00 24.24 262.27 6,925.00 24.24 262.27 6,950.00 24.24 262.27 6,975.00 24.24 262.27 7,000.00 24.24 262.27 7,025.00 24.24 262.27 7,050.00 24.24 262.27 7,075.00 24.24 262.27 7,100.00 24.24 262.27 7,125.00 24.24 262.27 7,150.00 24.24 262.27 7,175.00 24.24 262.27 7,200.00 24.24 262.27 7,225.00 24.24 262.27 7,250.00 24.24 262.27 7,275.00 24.24 262.27 7,300.00 24.24 262.27 7,325.00 24.24 262.27 7,350.00 24.24 262.27 7,375.00 24.24 262.27 7,400.00 24.24 262.27 7,425.00 24.24 262.27 7,450.00 24.24 262.27 7,475.00 24.24 262.27 7,500.00 24.24 262.27 7,525.00 24.24 262.27 7,550.00 24.24 262.27 7,575.00 24.24 262.27 7,600.00 24.24 262.27 7,625.00 24.24 262.27 Halliburton Standard Proposal Report Local Co-ordinate Reference: Well K-26RD (K-08) TVD Reference: WELL @ 100.00usft (Original Well Elev) MD Reference: WELL @ 100.00usft (Original Well Elev) North Reference: True Survey Calculation Method: Minimum Curvature D Vertical Ma Map P Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (usft) usft (usft) (usft) (usft) (usft) 5,781.89 5,881.89 5,781.89 2,216.21 -1,403.20 2,514,039.65 212,416.02 5.00 2,382.97 5,904.76 5,804.76 2,215.37 -1,413.26 2,514,039.06 212,405.94 5.00 2,383.47 5,916.47 5,816.47 2,214.73 -1,418-47 2,514,038.55 212,400.72 5.00 2,383.53 5,927.56 5,827.56 2,214.06 -1,423.42 2,514,037.99 212,395.76 0.00 2,383.52 5,950.36 5,850.36 2,212.67 -1,433.59 2,514,036.86 212,385.55 0.00 2,383.50 5,973.16 5,873.16 2,211.29 -1,443.76 2,514,035.73 212,375.35 0.00 2,383.48 5,995.95 5,895.95 2,209.91 -1,453.94 2,514,034.60 212,365.15 0.00 2,383.47 6,018.75 5,918.75 2,208.53 -1,464.11 2,514,033.47 212,354.95 0.00 2,383.45 6,041.54 5,941.54 2,207.15 -1,474.28 2,514,032.34 212,344.74 0.00 2,383.43 6,064.34 5,964.34 2,205.77 -1,484.45 2,514,031.20 212,334.54 0.00 2,383.41 6,087.13 5,987.13 2,204.39 -1,494.62 2,514,030.07 212,324.34 0.00 2,383.39 6,109.93 6,009.93 2,203.01 -1,504.79 2,514,028.94 212,314.14 0.00 2,383.38 6,132.72 6,032.72 2,201.62 -1,514.96 2,514,027.81 212,303.94 0.00 2,383.36 6,155.52 6,055.52 2,200.24 -1,525.14 2,514,026.68 212,293.73 0.00 2,383.34 6,178.31 6,078.31 2,198.86 -1,535.31 2,514,025.54 212,283.53 0.00 2,383.32 6,201.11 6,101.11 2,197.48 -1,545.48 2,514,024.41 212,273.33 0.00 2,383.30 6,223.91 6,123.91 2,196.10 -1,555.65 2,514,023.28 212,263.13 0.00 2,383.29 6,246.70 6,146.70 2,194.72 -1,565.82 2,514,022.15 212,252.92 0.00 2,383.27 6,269.50 6,169.50 2,193.34 -1,575.99 2,514,021.02 212,242.72 0.00 2,383.25 6,292.29 6,192.29 2,191.96 -1,586.16 2,514,019.89 212,232.52 0.00 2,383.23 6,315.09 6,215.09 2,190.57 -1,596.34 2,514,018.75 212,222.32 0.00 2,383.22 6,337.88 6,237.88 2,189.19 -1,606.51 2,514,017.62 212,212.12 0.00 2,383.20 6,360.68 6,260.68 2,187.81 -1,616.68 2,514,016.49 212,201.91 0.00 2,383.18 6,383.47 6,283.47 2,186.43 -1,626.85 2,514,015.36 212,191.71 0.00 2,383.16 6,406.27 6,306.27 2,185.05 -1,637.02 2,514,014.23 212,181.51 0.00 2,383.14 6,429.06 6,329.06 2,183.67 -1,647.19 2,514,013.09 212,171.31 0.00 2,383.13 6,451.86 6,351.86 2,182.29 -1,657.36 2,514,011.96 212,161.10 0.00 2,383.11 6,474.66 6,374.66 2,180.91 -1,667.54 2,514,010.83 212,150.90 0.00 2,383.09 6,497.45 6,397.45 2,179.52 -1,677.71 2,514,009.70 212,140.70 0.00 2,383.07 6,520.25 6,420.25 2,178.14 -1,687.88 2,514,008.57 212,130.50 0.00 2,383.05 6,543.04 6,443.04 2,176.76 -1,698.05 2,514,007.44 212,120.30 0.00 2,383.04 6,565.84 6,465.84 2,175.38 -1,708.22 2,514,006.30 212,110.09 0.00 2,383.02 6,588.63 6,488.63 2,174.00 -1,718.39 2,514,005.17 212,099.89 0.00 2,383.00 6,611.43 6,511.43 2,172.62 -1,728.56 2,514,004.04 212,089.69 0.00 2,382.98 6,634.22 6,534.22 2,171.24 -1,738.74 2,514,002.91 212,079.49 0.00 2,382.97 6,657.02 6,557.02 2,169.86 -1,748.91 2,514,001.78 212,069.29 0.00 2,382.95 6,679.82 6,579.82 2,168.47 -1,759.08 2,514,000.64 212,059.08 0.00 2,382.93 6,702.61 6,602.61 2,167.09 -1,769.25 2,513,999.51 212,048.88 0.00 2,382.91 6,725.41 6,625.41 2,165.71 -1,779.42 2,513,998.38 212,038.68 0.00 2,382.89 6,748.20 6,648.20 2,164.33 -1,789.59 2,513,997.25 212,028.48 0.00 2,382.88 6,771.00 6,671.00 2,162.95 -1,799.76 2,513,996.12 212,018.27 0.00 2,382.86 6,793.79 6,693.79 2,161.57 -1,809.94 2,513,994.99 212,008.07 0.00 2,382.84 6,816.59 6,716.59 2,160.19 -1,820.11 2,513,993.85 211,997.87 0.00 2,382.82 6,839.38 6,739.38 2,158.81 -1,830.28 2,513,992.72 211,987.67 0.00 2,382.80 712872016 10:53:12AM Page 9 COMPASS 5000.1 Build 81 Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM - NORTH US + CANADA Local Coordinate Reference: Well K-26RD (K-08) Company: Hilcorp Energy Company ND Reference: WELL @ 100.00usft (Original Well Elev) Project: Trading Bay MD Reference: WELL @ 100.00usft (Original Well Elev) Site: King Salmon North Reference: True Well: K-26RD (K-08) Survey Calculation Method: Minimum Curvature Wellbore: K-26RD2 Design: K-26RD2 wp03 Planned Survey Measured vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (usft) (°) (°) (usft) usft (usft) (usft) (usft) (usft) 6,762.18 7,650.00 24.24 262.27 6,862.18 6,762.18 2,157.42 -1,840.45 2,513,991.59 211,977.47 0.00 2,382.79 7,675.00 24.24 262.27 6,884.97 6,784.97 2,156.04 -1,850.62 2,513,990.46 211,967.26 0.00 2,382.77 7,700.00 24.24 262.27 6,907.77 6,807.77 2,154.66 -1,860.79 2,513,989.33 211,957.06 0.00 2,382.75 7,725.00 24.24 262.27 6,930.57 6,830.57 2,153.28 -1,870.96 2,513,988.19 211,946.86 0.00 2,382.73 7,750.00 24.24 262.27 6,953.36 6,853.36 2,151.90 -1,881.14 2,513,987.06 211,936.66 0.00 2,382.72 7,775.00 24.24 262.27 6,976.16 6,876.16 2,150.52 -1,891.31 2,513,985.93 211,926.45 0.00 2,382.70 7,800.00 24.24 262.27 6,998.95 6,898.95 2,149.14 -1,901.48 2,513,984.80 211,916.25 0.00 2,382.68 7,825.00 24.24 262.27 7,021.75 6,921.75 2,147.76 -1,911.65 2,513,983.67 211,906.05 0.00 2,382.66 7,850.00 24.24 262.27 7,044.54 6,944.54 2,146.37 -1,921.82 2,513,982.54 211,895.85 0.00 2,382.64 7,875.00 24.24 262.27 7,067.34 6,967.34 2,144.99 -1,931.99 2,513,981.40 211,885.65 0.00 2,382.63 7,900.00 24.24 262.27 7,090.13 6,990.13 2,143.61 -1,942.16 2,513,980.27 211,875.44 0.00 2,382.61 7,925.00 24.24 262.27 7,112.93 7,012.93 2,142.23 -1,952.34 2,513,979.14 211,865.24 0.00 2,382.59 7,950.00 24.24 262.27 7,135.72 7,035.72 2,140.85 -1,962.51 2,513,978.01 211,855.04 0.00 2,382.57 7,975.00 24.24 262.27 7,158.52 7,058.52 2,139.47 -1,972.68 2,513,976.88 211,844.84 0.00 2,382.55 8,000.00 24.24 262.27 7,181.32 7,081.32 2,138.09 -1,982.85 2,513,975.74 211,834.63 0.00 2,382.54 8,025.00 24.24 262.27 7,204.11 7,104.11 2,136.71 -1,993.02 2,513,974.61 211,824.43 0.00 2,382.52 8,050.00 24.24 262.27 7,226.91 7,126.91 2,135.33 -2,003.19 2,513,973.48 211,814.23 0.00 2,382.50 8,075.00 24.24 262.27 7,249.70 7,149.70 2,133.94 -2,013.36 2,513,972.35 211,804.03 0.00 2,382.48 8,100.00 24.24 262.27 7,272.50 7,172.50 2,132.56 -2,023.54 2,513,971.22 211,793.83 0.00 2,382.47 8,125.00 24.24 262.27 7,295.29 7,195.29 2,131.18 -2,033.71 2,513,970.09 211,783.62 0.00 2,382.45 8,150.00 24.24 262.27 7,318.09 7,218.09 2,129.80 -2,043.88 2,513,968.95 211,773.42 0.00 2,382.43 8,175.00 24.24 262.27 7,340.88 7,240.88 2,128.42 -2,054.05 2,513,967.82 211,763.22 0.00 2,382.41 8,200.00 24.24 262.27 7,363.68 7,263.68 2,127.04 -2,064.22 2,513,966.69 211,753.02 0.00 2,382.39 8,225.00 24.24 262.27 7,386A8 7,286.48 2,125.66 -2,074.39 2,513,965.56 211,742.81 0.00 2,382.38 8,250.00 24.24 262.27 7,409.27 7,309.27 2,124.28 -2,084.56 2,513,964.43 211,732.61 0.00 2,382.36 8,275.00 24.24 262.27 7,432.07 7,332.07 2,122.89 -2,094.74 2,513,963.29 211,722.41 0.00 2,382.34 8,300.00 24.24 262.27 7,454.86 7,354.86 2,121.51 -2,104.91 2,513,962.16 211,712.21 0.00 2,382.32 8,325.00 24.24 262.27 7,477.66 7,377.66 2,120.13 -2,115.08 2,513,961.03 211,702.01 0.00 2,382.31 8,350.00 24.24 262.27 7,500.45 7,400.45 2,118.75 -2,125.25 2,513,959.90 211,691.80 0.00 2,382.29 8,375.00 24.24 262.27 7,523.25 7,423.25 2,117.37 -2,135.42 2,513,958.77 211,681.60 0.00 2,382.27 8,400.00 24.24 262.27 7,546.04 7,446.04 2,115.99 -2,145.59 2,513,957.64 211,671.40 0.00 2,382.25 8,425.00 24.24 262.27 7,568.84 7,468.84 2,114.61 -2,155.76 2,513,956.50 211,661.20 0.00 2,382.23 8,450.00 24.24 262.27 7,591.63 7,491.63 2,113.23 -2,165.94 2,513,955.37 211,650.99 0.00 2,382.22 8,475.00 24.24 262.27 7,614.43 7,514.43 2,111.84 -2,176.11 2,513,954.24 211,640.79 0.00 2,382.20 8,500.00 24.24 262.27 7,637.23 7,537.23 2,110.46 -2,186.28 2,513,953.11 211,630.59 0.00 2,382.18 8,525.00 24.24 262.27 7,660.02 7,560.02 2,109.08 -2,196.45 2,513,951.98 211,620.39 0.00 2,382.16 8,550.00 24.24 262.27 7,682.82 7,582.82 2,107.70 -2,206.62 2,513,950.84 211,610.19 0.00 2,382.14 8,575.00 24.24 262.27 7,705.61 7,605.61 2,106.32 -2,216.79 2,513,949.71 211,599.98 0.00 2,382.13 8,600.00 24.24 262.27 7,728.41 7,628.41 2,104.94 -2,226.96 2,513,948.58 211,589.78 0.00 2,382.11 8,625.00 24.24 262.27 7,751.20 7,651.20 2,103.56 -2,237.14 2,513,947.45 211,579.58 0.00 2,382.09 8,650.00 24.24 262.27 7,774.00 7,674.00 2,102.18 -2,247.31 2,513,946.32 211,569.38 0.00 2,382.07 8,675.00 24.24 262.27 7,796.79 7,696.79 2,100.79 -2,257.48 2,513,945.19 211,559.18 0.00 2,382.06 8,700.00 24.24 262.27 7,819.59 7,719.59 2,099.41 -2,267.65 2,513,944.05 211,548.97 0.00 2,382.04 8,725.00 24.24 262.27 7,842.38 7,742.38 2,098.03 -2,277.82 2,513,942.92 211,538.77 0.00 2,382.02 8,750.00 24.24 262.27 7,865.18 7,765.18 2,096.65 -2,287.99 2,513,941.79 211,528.57 0.00 2,382.00 712812016 10:53.12AM Page 10 COMPASS 5000.1 Build 81 HALLIBURTON Halliburton Standard Proposal Report Database: Company: Project: Site: Well: Wellbore: Design: Sperry EDM - NORTH US + CANADA Hilcorp Energy Company Trading Bay King Salmon K-26RD (K-08) K-26RD2 K-26RD2 wp03 Local Co-ordinate Reference: Well K-26RD (K-08) ND Reference: WELL @ 100.00usft (Original Well Elev) MD Reference: WELL @ 100.00usft (Original Well Elev) North Reference: True Survey Calculation Method: Minimum Curvature Planned Survey -- - --� Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/S +E/-W Northing Easting DLS Vert Section (usft) V) V) (usft) usft (usft) (usft) (usft) (usft) 7,787.98 8,775.00 24.24 262.27 7,887.98 7,787.98 2,095.27 -2,298.16 2,513,940.66 211,518.37 0.00 2,381.98 8,800.00 24.24 262.27 7,910.77 7,810.77 2,093.89 -2,308.34 2,513,939.53 211,508.16 0.00 2,381.97 8,825.00 24.24 262.27 7,933.57 7,833.57 2,092.51 -2,318.51 2,513,938.39 211,497.96 0.00 2,381.95 8,850.00 24.24 262.27 7,956.36 7,856.36 2,091.13 -2,328.68 2,513,937.26 211,487.76 0.00 2,381.93 8,875.00 24.24 262.27 7,979.16 7,879.16 2,089.74 -2,338.85 2,513,936.13 211,477.56 0.00 2,381.91 8,900.00 24.24 262.27 8,001.95 7,901.95 2,088.36 -2,349.02 2,513,935.00 211,467.36 0.00 2,381.89 8,925.00 24.24 262.27 8,024.75 7,924.75 2,086.98 -2,359.19 2,513,933.87 211,457-15 0.00 2,381.88 8,950.00 24.24 262.27 8,047.54 7,947.54 2,085.60 -2,369.36 2,513,932.74 211,446.95 0.00 2,381.86 8,951-96 24.24 262.27 8,049.33 7,949.33 2,085.49 -2,370.16 2,513,932.65 211,446.15 0.00 2,381.86 Start Dir 5°/100' : 8951.96' MD, 8049.33'TVD 8,975.00 23.35 264.07 8,070.41 7,970.41 2,084.38 -2,379.39 2,513,931.76 211,436.90 5.00 2,381.98 9,000.00 22.40 266.17 8,093.45 7,993.45 2,083.55 -2,389.07 2,513,931.17 211,427.20 5.00 2,382.45 9,025.00 21.49 268.45 8,116.64 8,016.64 2,083.11 -2,398.40 2,513,930.96 211,417.86 5.00 2,383.25 9,050.00 20.61 270.92 8,139.97 8,039.97 2,083.06 -2,407.38 2,513,931.13 211,408.89 5.00 2,384.39 9,075.00 19.76 273.59 8,163.43 8,063.43 2,083.40 -2,416.00 2,513,931.67 211,400.28 5.00 2,385.87 9,100.00 18.96 276.49 8,187.02 8,087.02 2,084.12 -2,424.25 2,513,932.60 211,392.05 5.00 2,387.68 9,125.00 18.21 279.62 8,210.72 8,110.72 2,085.23 -2,432.14 2,513,933.90 211,384.19 5.00 2,389.83 9,150.00 17.51 283.01 8,234.51 8,134.51 2,086.73 -2,439.65 2,513,935.59 211,376.71 5.00 2,392.32 9,175.00 16.88 286.65 8,258.39 8,158.39 2,088.62 -2,446.80 2,513,937.65 211,369.62 5.00 2,395.14 9,200.00 16.31 290.56 8,282.35 8,182.35 2,090.89 -2,453.56 2,513,940.09 211,362.91 5.00 2,398.29 9,225.00 15.82 294.71 8,306.38 8,206.38 2,093.55 -2,459.94 2,513,942.90 211,356.59 5.00 2,401.77 9,250.00 15.42 299.10 8,330.46 8,230.46 2,096.59 -2,465.94 2,513,946.09 211,350.67 5.00 2,405.58 9,275.00 15.10 303.70 8,354.58 8,254.58 2,100.01 -2,471.56 2,513,949.65 211,345.14 5.00 2,409.72 9,300.00 14.88 308.46 8,378.73 8,278.73 2,103.82 -2,476.78 2,513,953.58 211,340.01 5.00 2,414.18 9,325.00 14.76 313.33 8,402.89 8,302.89 2,108.00 -2,481.61 2,513,957.88 211,335.29 5.00 2,418.97 9,350.00 14.75 318.24 8,427.07 8,327.07 2,112.56 -2,486.05 2,513,962.54 211,330.96 5.00 2,424.08 9,375.00 14.84 323.12 8,451.24 8,351.24 2,117.49 -2,490.09 2,513,967.57 211,327.05 5.00 2,429.50 9,400.00 15.02 327.92 8,475.40 8,375.40 2,122.80 -2,493.73 2,513,972.97 211,323.53 5.00 2,435.25 9,425.00 15.31 332.57 8,499.53 8,399.53 2,128.47 -2,496.97 2,513,978.72 211,320.43 5.00 2,441.30 9,450.00 15.69 337.03 8,523.62 8,423.62 2,134.52 -2,499.81 2,513,984.83 211,317.74 5.00 2,447.67 9,475.00 16.16 341.26 8,547.66 8,447.66 2,140.92 -2,502.25 2,513,991.30 211,315.46 5.00 2,454.34 9,500.00 16.70 345.24 8,571.64 8,471.64 2,147.69 -2,504.28 2,513,998.11 211,313.59 5.00 2,461.32 9,525.00 17.32 348.96 8,595.55 8,495.55 2,154.82 -2,505.91 2,514,005.27 211,312.14 5.00 2,468.60 9,550.00 18.00 352.42 8,619.37 8,519.37 2,162.30 -2,507.13 2,514,012.78 211,311.10 5.00 2,476.18 9,575.00 18.73 355.63 8,643.10 8,543.10 2,170.13 -2,507.95 2,514,020.63 211,310.48 5.00 2,484.05 9,600.00 19.52 358.59 8,666.72 8,566.72 2,178.31 -2,508.36 2,514,028.82 211,310.27 5.00 2,492.21 9,625.00 20.35 1.33 8,690.22 8,590.22 2,186.83 -2,508.36 2,514,037.34 211,310.48 5.00 2,500.65 9,650.00 21.22 3.86 8,713.60 8,613.60 2,195.69 -2,507.95 2,514,046.18 211,311.10 5.00 2,509.38 9,675.00 22.13 6.19 8,736.83 8,636.83 2,204.88 -2,507.14 2,514,055.36 211,312.14 5.00 2,518.39 9,700.00 23.06 8.35 8,759.91 8,659.91 2,214.41 -2,505.92 2,514,064.85 211,313.59 5.00 2,527.67 9,725.00 24.03 10.34 8,782.83 8,682.83 2,224.26 -2,504.30 2,514,074.66 211,315.45 5.00 2,537.22 9,750.00 25.01 12.19 8,805.57 8,705.57 2,234.44 -2,502.27 2,514,084.78 211,317.73 5.00 2,547.03 9,775.00 26.02 13.90 8,828.14 8,728.14 2,244.93 -2,499.84 2,514,095.21 211,320.42 5.00 2,557.10 9,800.00 27.05 15.50 8,850.50 8,750.50 2,255.73 -2,497.00 2,514,105.94 211,323.52 5.00 2,567.43 9,825.00 28.09 16.98 8,872.66 8,772.66 2,266.84 -2,493.76 2,514,116.96 211,327.03 5.00 2,578.01 712812016 10:53:12AM Page 11 COMPASS 5000.1 Build 81 Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Well K-26RD (K-08) Company: Hilcorp Energy Company TVD Reference: WELL @ 100.00usft (Original Well Elev) Project: Trading Bay MD Reference: WELL @ 100,00usft (Original Well Elev) Site: King Salmon North Reference: True Well: K-26RD (K-08) Survey Calculation Method: Minimum Curvature Wellbore: K-26RD2 Design: K-26RD2 wp03 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +El-W Northing Easting DLS Vert Section (usft) (') (1) (usft) usft (usft) (usft) (usft) (usft) 8,794.61 9,850.00 29.15 18.37 8,894.61 8,794.61 2,278.25 -2,490.12 2,514,128.28 211,330.94 5.00 2,588.84 9,875.00 30.23 19.67 8,916.33 8,816.33 2,289.95 -2,486.09 2,514,139.88 211,335.27 5.00 2,599.90 9,900.00 31.31 20.88 8,937.81 8,837.81 2,301.95 -2,481.65 2,514,151.77 211,339.99 5.00 2,611.20 9,925.00 32,40 22,02 8,959,04 8,859,04 2,314,23 -2,476.83 2,514,163.92 211,345.12 5.00 2,622.73 9,950.00 33.51 23.10 8,980.02 8,880.02 2,326.78 -2,471.61 2,514,176.35 211,350.64 5.00 2,634.49 9,975.00 34.62 24.11 9,000.73 8,900.73 2,339.61 -2,466.00 2,514,189.04 211,356.57 5.00 2,646.46 10,000.00 35.74 25.07 9,021.16 8,921.16 2,352.71 -2,460.00 2,514,201.99 211,362.88 5.00 2,658.64 10,025.00 36.87 25.98 9,041.30 8,941.30 2,366.07 -2,453.62 2,514,215.18 211,369.58 5.00 2,671.03 10,050.00 38.01 26.84 9,061.15 8,961.15 2,379.68 -2,446.86 2,514,228.62 211,376.68 5.00 2,683.63 10,075.00 39.15 27.66 9,080.70 8,980.70 2,393.54 -2,439.72 2,514,242.30 211,384.15 5.00 2,696.42 10,100.00 40.30 28.44 9,099.93 8,999.93 2,407.64 -2,432.21 2,514,256.22 211,392.01 5.00 2,709.39 10,125.00 41.45 29.18 9,118.83 9,018.83 2,421.97 -2,424.33 2,514,270.35 211,400.24 5.00 2,722.55 10,150.00 42.60 29.89 9,137.40 9,037.40 2,436.53 -2,416.08 2,514,284.71 211,408.85 5.00 2,735.89 10,175.00 43.76 30.57 9,155.63 9,055.63 2,451.32 -2,407.46 2,514,299.27 211,417.82 5.00 2,749.39 10,200.00 44.93 31.22 9,173.51 9,073.51 2,466.31 -2,398.49 2,514,314.04 211,427.16 5.00 2,763.06 10,225.00 46.10 31.84 9,191.03 9,091.03 2,481.51 -2,389.16 2,514,329.01 211,436.85 5.00 2,776.89 10,250.00 47.27 32.44 9,208.18 9,108.18 2,496.91 -2,379.48 2,514,344.17 211,446.90 5.00 2,790.87 10,275.00 48.44 33.02 9,224.95 9,124.95 2,512.50 -2,369.46 2,514,359.51 211,457.31 5.00 2,804.99 10,300.00 49.62 33.58 9,241.34 9,141.34 2,528.28 -2,359.09 2,514,375.03 211,468.05 5.00 2,819.25 10,325.00 50.80 34.12 9,257.34 9,157.34 2,544.23 -2,348.39 2,514,390.71 211,479.14 5.00 2,833.64 10,350.00 51.98 34.64 9,272.94 9,172.94 2,560.35 -2,337.36 2,514,406.56 211,490.57 5.00 2,848.15 10,375.00 53.16 35.15 9,288.14 9,188.14 2,576.64 -2,326.01 2,514,422.56 211,502.32 5.00 2,862.78 10,400.00 54.35 35.63 9,302.92 9,202.92 2,593.07 -2,314.33 2,514,438.71 211,514.39 5.00 2,877.52 10,425.00 55.54 36.11 9,317.28 9,217.28 2,609.65 -2,302.34 2,514,454.99 211,526.79 5.00 2,892.36 10,450.00 56.73 36.57 9,331.21 9,231.21 2,626.37 -2,290.04 2,514,471.41 211,539.50 5.00 2,907.30 10,475.00 57.92 37.02 9,344.71 9,244.71 2,643.23 -2,277.43 2,514,487.94 211,552.51 5.00 2,922.33 10,500.00 59.11 37.46 9,357.76 9,257.76 2,660.20 -2,264.53 2,514,504.59 211,565.82 5.00 2,937.44 10,525.00 60.31 37.88 9,370.37 9,270.37 2,677.28 -2,251.34 2,514,521.35 211,579.43 5.00 2,952.62 10,550.00 61.50 38.30 9,382.53 9,282.53 2,694.48 -2,237.86 2,514,538.21 211,593.32 5.00 2,967.87 10,575.00 62.70 38.71 9,394.23 9,294.23 2,711.77 -2,224.11 2,514,555.16 211,607.50 5.00 2,983.18 10,600.00 63.90 39.11 9,405.46 9,305.46 2,729.15 -2,210.08 2,514,572.19 211,621.94 5.00 2,998.54 10,625.00 65.10 39.50 9,416.22 9,316.22 2,746.61 -2,195.79 2,514,589.29 211,636.66 5.00 3,013.95 10,650.00 66.30 39.88 9,426.51 9,326.51 2,764.14 -2,181.24 2,514,606.46 211,651.63 5.00 3,029.39 10,675.00 67.50 40.26 9,436.32 9,336.32 2,781.74 -2,166.43 2,514,623.69 211,666.86 5.00 3,044.87 10,700.00 68.70 40.62 9,445.64 9,345.64 2,799.39 -2,151.39 2,514,640.97 211,682.34 5.00 3,060.37 10,725.00 69.90 40.99 9,454.48 9,354.48 2,817.09 -2,136.11 2,514,658.30 211,698.05 5.00 3,075.88 10,750.00 71.11 41.35 9,462.82 9,362.82 2,834.83 -2,120.59 2,514,675.65 211,713.99 5.00 3,091.40 10,775.00 72.31 41.70 9,470.67 9,370.67 2,852.60 -2,104.86 2,514,693.03 211,730.16 5.00 3,106.93 10,800.00 73.52 42.05 9,478.01 9,378.01 2,870.40 -2,088.91 2,514,710.43 211,746.54 5.00 3,122.44 10,825.00 74.72 42.39 9,484.85 9,384.85 2,888.20 -2,072.75 2,514,727.84 211,763.13 5.00 3,137.95 10,850.00 75.93 42.73 9,491.19 9,391.19 2,906.02 -2,056.39 2,514,745.24 211,779.92 5.00 3,153.43 10,875.00 77.13 43.07 9,497.01 9,397.01 2,923.83 -2,039.84 2,514,762.64 211,796.90 5.00 3,168.88 10,900.00 78.34 43.40 9,502.32 9,402.32 2,941.62 -2,023.11 2,514,780.02 211,814.06 5.00 3,184.30 10,913.64 79.00 43.58 9,505.00 9,405.00 2,951.33 -2,013.90 2,514,789.50 211,823.50 5.00 3,192.69 10,925.00 79.57 43.58 9,507.11 9,407.11 2,959.41 -2,006.21 2,514,797.39 211,831.39 5.00 3,199.69 7/28/2016 10:53:124M Page 12 COMPASS 5000.1 Build 81 Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Well K-26RD (K-08) Company: Hilcorp Energy Company TVD Reference: WELL @ 100.00usft (Original Well Elev) Project: Trading Bay MD Reference: WELL @ 100.00usft (Original Well Elev) Site: King Salmon North Reference: True Well: K-26RD (K-08) Survey Calculation Method: Minimum Curvature Wellbore: K-26RD2 Design: K-26RD2 wp03 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/S +E/.W Northing Easting DLS Vert Section (usft) (1) V) (usft) usft (usft) (usft) (usft) (usft) 9,410.38 10,943.87 80.51 43.58 9,510.38 9,410.38 2,972.88 -1,993.40 2,514,810.54 211,844.53 5.00 3,211.33 End Dir : 10943.87' MD, 9510.38' TVD 10,950.00 80.51 43.58 9,511.39 9,411.39 2,977.25 -1,989.23 2,514,814.82 211,848.80 0.00 3,215.11 10,975.00 80.51 43.58 9,515.51 9,415.51 2,995.12 -1,972.23 2,514,832.26 211,866.23 0.00 3,230.56 11,000.00 80.51 43.58 9,519.63 9,419.63 3,012.98 -1,955.23 2,514,849.70 211,883.66 0.00 3,246.01 11,025.00 80.51 43.58 9,523.75 9,423.75 3,030.84 -1,938.23 2,514,867.14 211,901.09 0.00 3,261.45 11,050.00 80.51 43.58 9,527.87 9,427.87 3,048.70 -1,921.23 2,514,884.58 211,918.53 0.00 3,276.90 11,075.00 80.51 43.58 9,531.99 9,431.99 3,066.57 -1,904.24 2,514,902.02 211,935.96 0.00 3,292.34 11,100.00 80.51 43.58 9,536.11 9,436.11 3,084.43 -1,887.24 2,514,919.46 211,953.39 0.00 3,307.79 11,125.00 80.51 43.58 9,540.23 9,440.23 3,102.29 -1,870.24 2,514,936.90 211,970.82 0.00 3,323.24 11,160.00 80.51 43.58 9,544.36 9,444.36 3,120.15 -1,853.24 2,514,954.34 211,988.25 0.00 3,338.68 11,175.00 80.51 43.58 9,548.48 9,448.48 3,138.02 -1,836.24 2,514,971.78 212,005.68 0.00 3,354.13 11,200.00 80.51 43.58 9,552.60 9,452.60 3,155.88 -1,819.24 2,514,989.22 212,023.11 0.00 3,369.57 11,225.00 80.51 43.58 9,556.72 9,456.72 3,173.74 -1,802.24 2,515,006.67 212,040.54 0.00 3,385.02 11,250.00 80.51 43.58 9,560.84 9,460.84 3,191.60 -1,785.24 2,515,024.11 212,057.97 0.00 3,400.47 11,275.00 80.51 43.58 9,564.96 9,464.96 3,209.46 -1,768.25 2,515,041.55 212,075.40 0.00 3,415.91 11,300.00 80.51 43.58 9,569.08 9,469.08 3,227.33 -1,751.25 2,515,058.99 212,092.83 0.00 3,431.36 11,325.00 80.51 43.58 9,573.20 9,473.20 3,245.19 -1,734.25 2,515,076.43 212,110.26 0.00 3,446.80 11,350.00 80.51 43.58 9,577.33 9,477.33 3,263.05 -1,717.25 2,515,093.87 212,127.70 0.00 3,462.25 11,375.00 80.51 43.58 9,581.45 9,481.45 3,280.91 -1,700.25 2,515,111.31 212,145.13 0.00 3,477.70 11,400,00 80,51 43,58 9,585,57 9,485.57 3,298.78 -1,683.25 2,515,128.75 212,162.56 0.00 3,493.14 11,425.00 80.51 43.58 9,589.69 9,489.69 3,316.64 -1,666.25 2,515,146.19 212,179.99 0.00 3,508.59 11,450.00 80.51 43.58 9,593.81 9,493.81 3,334.50 -1,649.26 2,515,163.63 212,197.42 0.00 3,524.03 11,475.00 80.51 43.58 9,597.93 9,497.93 3,352.36 -1,632.26 2,515,181.07 212,214.85 0.00 3,539.48 11,500.00 80.51 43.58 9,602.05 9,502.05 3,370.23 -1,615.26 2,515,198.51 212,232.28 0.00 3,554.93 11,525.00 80.51 43.58 9,606.17 9,506.17 3,388.09 -1,598.26 2,515,215.95 212,249.71 0.00 3,570.37 11,550.00 80.51 43.58 9,610.29 9,510.29 3,405.95 -1,581.26 2,515,233.40 212,267.14 0.00 3,585.82 11,575.00 80.51 43.58 9,614.42 9,514.42 3,423.81 -1,564.26 2,515,250.84 212,284.57 0.00 3,601.26 11,600.00 80.51 43.58 9,618.54 9,518.54 3,441.67 -1,547.26 2,515,268.28 212,302.00 0.00 3,616.71 11,625.00 80.51 43.58 9,622.66 9,522.66 3,459.54 -1,530.26 2,515,285.72 212,319.43 0.00 3,632.16 11,650.00 80.51 43.58 9,626.78 9,526.78 3,477.40 -1,513.27 2,515,303.16 212,336.87 0.00 3,647.60 11,675.00 80.51 43.58 9,630.90 9,530.90 3,495.26 -1,496.27 2,515,320.60 212,354.30 0.00 3,663.05 11,700.00 80.51 43.58 9,635.02 9,535.02 3,513.12 -1,479.27 2,515,338.04 212,371.73 0.00 3,678.49 11,725.00 80.51 43.58 9,639.14 9,539.14 3.530.99 -1,462.27 2,515,355.48 212,389.16 0.00 3,693.94 1 11,750.00 80.51 43.58 9,643.26 9,543.26 3,548.85 -1,445.27 2,515,372.92 212,406.59 0.00 3,709.38 11,775.00 80.51 43.58 9,647.39 9,547.39 3,566.71 -1,428.27 2,515,390.36 212,424.02 0.00 3,724.83 11,800.00 80.51 43.58 9,651.51 9,551.51 3,584.57 -1,411.27 2,515,407.80 212,441.45 0.00 3,740.28 11,825.00 80.51 43.58 9,655.63 9,555.63 3,602.44 -1,394.28 2,515,425.24 212,458.88 0.00 3,755.72 11,850.00 80.51 43.58 9,659.75 9,559.75 3,620.30 -1,377.28 2,515,442.69 212,476.31 0.00 3,771.17 11,875.00 80.51 43.58 9,663.87 9,563.87 3,638.16 -1,360.28 2,515,460.13 212,493.74 0.00 3,786.61 11,900.00 80.51 43.58 9,667.99 9,567.99 3,656.02 -1,343.28 2,515,477.57 212,511.17 0.00 3,802.06 11,918.25 80.51 43.58 9,671.00 9,571.00 3,669.06 -1,330.87 2,515,490.30 212,523.90 0.00 3,813.34 11,925.00 80.51 43.58 9,672.11 9,572.11 3,673.88 -1,326.28 2,515,495.01 212,528.60 0.00 3,817.51 11,950.00 80.51 43.58 9,676.23 9,576.23 3,691.75 -1,309.28 2,515,512.45 212,546.04 0.00 3,832.95 11,975.00 80.51 43.58 9,680.35 9,580.35 3,709.61 -1,292.28 2,515,529.89 212,563.47 0.00 3,848.40 712812016 10:53:12AM Page 13 COMPASS 5000.1 Build 81 HALLIBURTON Database: Sperry EDM - NORTH US + CANADA Company: Hilcorp Energy Company Project: Trading Bay Site: King Salmon Well: K-26RD (K-08) Wellbore: K-26RD2 Design: K-26RD2 wp03 Planned Survey Measured Vertical Depth Inclination Azimuth Depth TVDss (usft) (') V) (usft) usft 12,000.00 80.51 43.58 9,684.48 9,584.4E 12,025.00 80.51 43.58 9,688.60 9,588.6C 12,050.00 80.51 43.58 9,692.72 9,592.72 12,075.00 80.51 43.58 9,696.84 9,596.84 12,100.00 80.51 43.58 9,700.96 9,600.96 12,125.00 80.51 43.58 9,705.08 9,605.08 12,150.00 80.51 43.58 9,709.20 9,609.20 12,175.00 80.51 43.58 9,713.32 9,613.32 12,200.00 80.51 43.58 9,717.45 9,617.45 12,225.00 80.51 43.58 9,721.57 9,621.57 12,250.00 80.51 43.58 9,725.69 9,625.69 12,275.00 80.51 43.58 9,729.81 9,629.81 12,300.00 80.51 43.58 9,733.93 9,633.93 12,325.00 80.51 43.58 9,738.05 9,638.05 12,350.00 80.51 43.58 9,742.17 9,642.17 12,375.00 80.51 43.58 9,746.29 9,646.29 12,400.00 80.51 43.58 9,750.41 9,650.41 12,425.00 80.51 43.58 9,754.54 9,654.54 12,440.00 80.51 43.58 9,757.01 9,657.01 S.F.<1.0 with A-27RD2 & A-27RD2PB2 12,450.00 80.51 43.58 9,758.66 9,658.66 12,475.00 80.51 43.58 9,762.78 9,662.78 12,500.00 80.51 43.58 9,766.90 9,666.90 12,525.00 80.51 43.58 9,771.02 9,671.02 12,550.00 80.51 43.58 9,775.14 9,675.14 12,575.00 80.51 43.58 9,779.26 9,679.26 12,600.00 80.51 43.58 9,783.38 9,683.38 12,625.00 80.51 43.58 9,787.51 9,687.51 12,650.00 80.51 43.58 9,791.63 9,691.63 12,675.00 80.51 43.58 9,795.75 9,695.75 12,700.00 80.51 43.58 9,799.87 9,699.87 12,725.00 80.51 43.58 9,803.99 9,703.99 12,750.00 80.51 43.58 9,808.11 9,708.11 12,775.00 80.51 43.58 9,812.23 9,712.23 12,800.00 80.51 43.58 9,816.35 9,716.35 12,825.00 80.51 43.58 9,820.47 9,720.47 12,850.00 80.51 43.58 9,824.60 9,724.60 12,875.00 80.51 43.58 9,828.72 9,728.72 12,900.00 80.51 43.58 9,832.84 9,732.84 12,925.00 80.51 43.58 9,836.96 9,736.96 12,950.00 80.51 43.58 9,841.08 9,741.08 12,975.00 80.51 43.58 9,845.20 9,745.20 13,000.00 80.51 43.58 9,849.32 - 9,749.32 Total Depth: 13000'MD, 9849.32'TVD Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Halliburton Standard Proposal Report Well K-26RD (K-08) WELL @ 100.00usft (Original Well Elev) WELL @ 100.00usft (Original Well Elev) True Minimum Curvature Map Map +N/-S +E/-W Northing Easting DLS Vert Section (usft) (usft) (usft) (usft) 9,584.48 3,727.47 -1,275.29 2,515,547.33 212,580.90 0.00 3,863.84 3,745.33 -1,258.29 2,515,564.77 212,598.33 0.00 3,879.29 3,763.20 -1,241.29 2,515,582.21 212,615.76 0.00 3,894.74 3,781.06 -1,224.29 2,515,599.65 212,633.19 0.00 3,910.18 3,798.92 -1,207.29 2,515,617.09 212,650.62 0.00 3,925.63 3,816.78 -1,190.29 2,515,634.53 212,668.05 0.00 3,941.07 3,834.65 -1,173.29 2,515,651.97 212,685.48 0.00 3,956.52 3,852.51 -1,156.29 2,515,669.42 212,702.91 0.00 3,971.97 3,870.37 -1,139.30 2,515,686.86 212,720.34 0.00 3,987.41 3,888.23 -1,122.30 2,515,704.30 212,737.78 0.00 4,002.86 3,906.09 -1,105.30 2,515,721.74 212,755.21 0.00 4,018.30 3,923.96 -1,088.30 2,515,739.18 212,772.64 0.00 4,033.75 3,941.82 -1,071.30 2,515,756.62 212,790.07 0.00 4,049.20 3,959.68 -1,054.30 2,515,774.06 212,807.50 0.00 4,064.64 3,977.54 -1,037.30 2,515,791.50 212,824.93 0.00 4,080.09 3,995.41 -1,020.31 2,515,808.94 212,842.36 0.00 4,095.53 4,013.27 -1,003.31 2,515,826.38 212,859.79 0.00 4,110.98 4,031.13 -986.31 2,515,843.82 212,877.22 0.00 4,126.43 4,041.85 -976.11 2,515,854.29 212,887.68 0.00 4,135.69 4,048.99 -969.31 2,515,861.26 212,894.65 0.00 4,141.87 4,066.86 -952.31 2,515,878.71 212,912.08 0.00 4,157.32 4,084.72 -935.31 2,515,896.15 212,929.51 0.00 4,172.76 4,102.58 -918.31 2,515,913.59 212,946.95 0.00 4,188.21 4,120.44 -901.31 2,515,931.03 212,964.38 0.00 4,203.65 4,138.30 -884.32 2,515,948.47 212,981.81 0.00 4,219.10 4,156.17 -867.32 2,515,965.91 212,999.24 0.00 4,234.55 4,174.03 -850.32 2,515,983.35 213,016.67 0.00 4,249.99 4,191.89 -833.32 2,516,000.79 213,034.10 0.00 4,265.44 4,209.75 -816.32 2,516,018.23 213,051.53 0.00 4,280.88 4,227.62 -799.32 2,516,035.67 213,068.96 0.00 4,296.33 4,245.48 -782.32 2,516,053.11 213,086.39 0.00 4,311.78 4,263.34 -765.33 2,516,070.55 213,103.82 0.00 4,327.22 4,281.20 -748.33 2,516,087.99 213,121.25 0.00 4,342.67 4,299.07 -731.33 2,516,105.44 213,138.68 0.00 4,358.11 4,316.93 -714.33 2,516,122.88 213,156.12 0.00 4,373.56 4,334.79 -697.33 2,516,140.32 213,173.55 0.00 4,389.01 4,352.65 -680.33 2,516,157.76 213,190.98 0.00 4,404.45 4,370.51 -663.33 2,516,175.20 213,208.41 0.00 4,419.90 4,388.38 -646.34 2,516,192.64 213,225.84 0.00 4,435.34 4,406.24 -629.34 2,516,210.08 213,243.27 0.00 4,450.79 4,424.10 -612.34 2,516,227.52 213,260.70 0.00 4,466.24 4,441.96 -595.34 2,516,244.96 213,278.13 0.00 4,481.68 712812016 10:53:12AM Page 14 COMPASS 5000.1 Build 81 HALLIBURTON Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Company: Hilcorp Energy Company TVD Reference: Project: Trading Bay MD Reference: Site: King Salmon North Reference: Well: K-26RD (K-08) Survey Calculation Method: Wellbore: K-26RD2 Design: K-26RD2 wp03 Targets Target Name hittmiss target Dip Angle Dip Dir. TVD +N/-S Shape V) (I (usft) (usft) K-26RD2 wp2 H3 Tgt 0.00 0.00 9,700.00 4,129.14 plan misses target center by 311.25usft at 12258.45usft MD (9727.08 TVD, 3912.13 N,-1099.56 E) Point K-26RD2 wpl H1 Tgt 0.00 0.00 9,525.00 3,121.20 plan misses target center by 137.17usft at 11019.50usft MD (9522.84 TVD, 3026.91 N,-1941.97 E) Point K-26RD2 wp3 HK1T Tgt 0.00 0.00 9,505.00 2,951.33 plan hits target center Circle (radius 50.00) K-26RD2 wp2 H1 Tgt 0.00 0.00 9,600.00 3,726.79 plan misses target center by 152.55usft at 12092.38usft MD (9699.70 TVD, 3793.48 N,-1212.47 E) Point K-26RD2 wpl H3 Tgt 0.00 0.00 9,700.00 4,129.14 plan misses target center by 311.25usft at 12258.45usft MD (9727.08 TVD, 3912.13 N,-1099.56 E) Point K-261RD2 wp3 HK3T Tgt 0.00 0.00 9,671.00 3,669.06 plan hits target center Circle (radius 50.00)- - Plan Annotations Measured Vertical Local Coordinates Depth Depth +N/S +E/-W (usft) (usft) (usft) (usft) Comment Halliburton Standard Proposal Report Well K-26RD (K-08) WELL @ 100.00usft (Original Well Elev) WELL @ 100.00usft (Original Well Elev) True Minimum Curvature +E/-W Northing Easting (usft) (usft) (usft) -1,321.03 2,515,950.00 212,545.00 -2,041.57 2,514,960.00 211,800.00 -2,013.90 2,514,789.50 211,823.50 -1,118.22 2,515,542.80 212,737.90 -1,321.03 2,515,950.00 212,545.00 -1,330.87 2,515,490.30 212,523.90 6,000.00 5,360.71 2,092.08 -1,211.29 KOP: Start Dir 13.56°/100' : 6000' MD, 5360.7l'TVD : 60' LT TF 6,016.50 5,375.11 2,099.02 -1,215.36 End Dir : 6016.5' MD, 5375.1l' TVD 6,036.50 5,392.48 2,107.41 -1,220.66 Start Dir 5°/100' : 6036.5' MD, 5392.48'TVD 6,612.83 5,916.47 2,214.73 -1,418.47 End Dir : 6612.83' MD, 5916.47' TVD 8,951.96 8,049.33 2,085.49 -2,370.16 Start Dir 5°/100' : 8951.96' MD, 8049.33'TVD 10,943.87 9,510.38 2,972.88 -1,993.40 End Dir : 10943.87' MD, 9510.38' TVD 12,440.00 9,757.01 4,041.85 -976.11 S.F.<1.0 with A-27RD2 & A-27RD2PB2 13,000.00 9,849.32 4,441.96 -595.34 Total Depth: 13000'MD, 9849.32'TVD 712812016 10:53:12AM Page 15 COMPASS 5000.1 Build 81 Hilcorp Energy Company Trading Bay King Salmon K-26RD (K-08) K-26RD2 K-26RD2 wp03 Sperry Drilling Services Clearance Summary Anticollision Report 28 July, 2016 Closest Approach 3D Proximity Scan on Current Survey Data (North Reference) Reference Design: King Salmon - K-26RD (K-08) - K-26RD2 - K-26RD2 wp03 Well Coordinates: 2,511,789.75 N. 213,764.55 E (60' 51' 55.84" N, 151' 36' 21.09" W) Datum Height: WELL @ 100.00usft (Original Well Elev) Scan Range: 6,000.00 to 13,000.00 usft. Measured Depth. Scan Radius is 1,500.00 usft . Clearance Factor cutoff is Unlimited. Max Ellipse Separation is Unlimited Version: 5000.1 Build: 81 Scan Type: GLOBAL FILTER APPLIED: Al wellpaths within 200'+ 100/1000 of reference Scan Type: 25.00 N HALLIBURTON t. Sperry Drilling Services HALLIBURTON Anticollision Report for K-26RD (K-08) - K-26RD2 wp03 Closest Approach 3D Proximity Scan on Current Survey Data (North Reference) Reference Design: King Salmon - K-26RD (K-08) - K-26RD2 - K-26RD2 wp03 Scan Range: 6,000.00 to 13,000.00 usft. Measured Depth. Scan Radius is 1,500.00 usft. Clearance Factor cutoff is Unlimited. Max Ellipse Separation is Unlimited Measured Minimum @Measured Site Name Depth Distance Depth Comparison Well Name - Wellbore Name - Design (usft) (usft) (usft) King Salmon K-22 - K-22 - K-22 9,271.73 639.09 9,271.73 K-22 - K-22 - K-22 9,275.00 639.09 9,275.00 K-22-K-22PB1-K-22PB1 6,000.00 1,319.74 6,000.00 K-22-K-22PB1-K-22PB1 8,125.00 1,255.77 8,125.00 K-22-K-22PB1-K-22PB7 8,344A3 1,251.87 8,344.13 K-26RD (K-08) - K-26 - K-26 6,300.00 35.02 6,300.00 K-26RD (K-08) - K-26RD - K-26RD 6,300.00 35.02 6,300.00 Ellipse @Measured Clearance Summary Based on Separation Depth Factor Minimum (usft) usft Hilcorp Energy Company Trading Bay Separation Warning 348.76 9,181.47 2.201 Centre Distance Pass - 348.75 9,184.74 2.201 Clearance Factor Pass - 1,043.55 5,884.76 4.778 Clearance Factor Pass - 1,007.10 7,943.40 5.050 Ellipse Separation Pass - 1,011.32 8,123.11 5.204 Centre Distance Pass - 26.25 6,297.09 3.992 Clearance Factor Pass - 26.25 6,297.09 3.992 Clearance Factor Pass - Monopod TBS A-27 - TBS A-27RD - TBS A-27RD 13,000.00 1,381.01 13,000.00 1,062.18 12,933.00 4.331 Clearance Factor Pass - TBS A-27 - TBS A-27RD2 - TBS A-27RD2 - TBS A-27 - TBS A-27RD2 - TBS A-27RD2 TBS A-27 - TBS A-27RD2PB1 - A-27RD2PB1 13,000.00 920.82 13,000.00 494,76 13,275.00 2.161 Clearance Factor Pass - TBS A-27 - TBS A-27RD2PB2 - A-27RD2PB2 - TBS A-27-TBS A-27RD2PB2 - A-27RD2PB2 - Survey tool program From To Survey/Plan Survey Tool (usft) (usft) 100.00 440.00 NSG_WL 492.00 6,000.00 CB -Magnetic 6,000.00 13,000.00 K-26RD2 wp03 MWD+SC+sag 28 July, 2016 - 10.34 Page 2 of 5 COMPASS HALLIBURTON Anticollision Report for K-26RD (K-08) - K-26RD2 wp03 Ellipse error terms are correlated across survey tool tie -on points. Calculated ellipses incorporate surface errors. Separation is the actual distance between ellipsoids. Distance Between centres is the straight line distance between wellbore centres. Clearance Factor = Distance Between Profiles / (Distance Between Profiles - Ellipse Separation). All station coordinates were calculated using the Minimum Curvature method. Hileorp Energy Company Trading Bay 28 July, 2016 - 10:34 Page 3 of 5 COMPASS HALLIBURTON Anticollision Report for K-26RD (K-08) - K-26RD2 wp03 Direction and Coordinates are relative to True North Reference. Vertical Depths are relative to WELL @ 100.00usft (Original Well Elev). Northing and Easling are relative to K-26RD (K-08). Coordinate System is US State Plane 1927 (Exact solution), Alaska Zone 04. Central Meridian is-150.00% Grid Convergence at Surface is: -1.40 °. N 1350- 7 O LO It N C U 450- O Ladder Plot I ____ ____+____ ____t____ ____y____ ____y___ I 1 I I I I I I I p I I I 1 I 1 I I I I I I I I \-- 1 I I I I I I 1 I I I I I I I I I I 1 1 I I I I I I I I I I I 1 1 I I I I l I I I I I I I I I I I 1 1 I I I I I 1 I I I I I I I - _ _ t 1 it I' I I I I _ _ _ _ 1 _ _ _ _ I i I I I I I _ _ _ _ I i I I I I I t I 0 2500 5000 7500 10000 12500 Measured Depth (2500 usFt/in) Hilcorp Energy Company Trading Bay $ K-10, K-10, K-10 VO $ K-10,K-10RD,K-10RDVO $ K-10, Plan: K-106, K-1 OB wp2 VO �E K-11(unvalidated),K-11,K-11V0 $ K-11(unvalidated),Plan: K-11A,K-llAwp1VO $ K-12(unvalidated),K-12,K-12VO $ K- 12 (unvalidatcl),K-12RD,K-12RDVO K-12 (unvalidated), K-12RD2, K-12RD2 VO $ K-13, K-13, K-13 VO $ K-13,K-13RD,K-13RDVO $ K- 13, K-1 3RD2, K- 1 3RD2 VO $ K-15,K-15,K-15VO $ K-15,K-15RD,K-15RDVO $ K-17, K-17, K-17 VO -�- K-18, K-18, K-18 VO $- K-18,K-18RD,K-18RDVO $ K-18,K-18RDPBI,K-18RDPB1 VO -&- K-19,K-19,K-19VO -Ar K-20, K-20, K-20 VO -� K-21, K-21, K-21 VO -�- K-21, K-21 RD, K-21 RD VO -�(- K-21,Plan: K-21B,K-21Bwp2V0 $ K-22, K-22, K-22 VO $ K-22, K-22PB 1, K-22PB 1 VO $ K-23, K-23, K-23 VO i- K-23, Plan: K-23A, K-23Awp1 VO 28 July, 2016 - 10:34 Page 4 of 5 COMPASS HALLIBURTON Anticollision Report for K-26RD (K-08) - K-26RD2 wp03 Clearance Factor Plot: Measured Depth versus Separation(Clearance)Factor t0 E 2 1 0 00 75 50 zs i 75 1 i0 I ?5 Collision Avoidance Req -No-Go Zone - Stop Dulli Nl U Izw L*W irw JUUU bZbU /OW a/DU IUUUU IIzbU 1GJUU 131bu IbuuU Measured Depth (2500 usB/n) 28 July. 2016 - 10:34 Page 5 O/ S Hilcorp Energy Company Trading Bay -or K1UU, I -Ian: K-U9A, K-UyAwpZ VU $ K-10,K-10,K-10VO $ K-10,K-10RD,K-10RDVO $ K-1 0, Plan: K-1 OB, K-1 OB wp2 VO $ K-11 (unvalidated),K-11,K-11 VO $ K-11(unvalidatrd),Plan: K-11A,K-11Awp1 VO $ K-12(unvalidat d),K-12,K-12VO $ K-12(unvalidaL-d),K-12RD,K-12RDVO �i- K-12(unvalidaled),K-12RD2,K-12RD2VO $ K-13, K-13, K-13 VO K-13, K-13RD, K-13RD VO �(- K-1 3, K-1 3RD2, K-1 3RD2 VO $ K-15,K-15,K-15VO $ K-15,K-15RD,K-15RDVO $ K-17,K-17,K-17VO -� K-18, K-18, K-18 VO -i- K-18,K-18RD,K-18RDVO $ K-18,K-18RDPBI,K-18RDPB1 VO �- K-19,K-19,K-19VO -� K-20, K-20, K-20 VO -� K-21, K-21, K-21 VO 3- K-21,K-21RD,K-21RDVO $ K-21.Plan: K-21B,K-21Bwp2V0 $ K-22, K-22, K-22 VO $ K-22, K-22PB 1, K-22PB1 VO $ K-23, K-23, K-23 VO �- K-23,Plan: K-23A,K-23Awp1 VO - K-24, K-24, K-24 VO COMPASS STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPRO S A 0 G G 20 AAC 25.280 1. Type of Request: Abandon ❑ Plug Perforations ❑ Fracture Stimulate ❑ Repair Well ElOperaticrrs shutdc.rit❑ Suspend E]Perforate ❑ Other Stimulate ❑ Pull Tubing ❑ Change Approved Program[] Plug For Redrill 121. Perforate New Pool ❑ Re-enter Susp Well Alter Casing ❑ Other. ❑ 2. Operator Name: 4. Current Well Class: 5. Peml to urltl'vumaer. HiicorpAlaska, LLC Exploratory Development 0. 195 a33 3. Address: 3800 Centerpoint Drive, Suite 1400 3..aPi is �n[esr. Stratigrep ❑ Service ❑ Anchorage, AK 99503 50-733-20097-04 7. If perforating: 8. What Regulation or Conservation Order governs well spacing in pool? N/A Will planned perforations require a spacing exception? Yes ❑ No [a Tradin Bay Unit K-26RD , 9. Property Designation (Lease Number). 10. Field/Pool(s): ADL0017594 McArthur River Field / Hemlock Oil & Middle Ken ' 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): E dive Depth MD: Effective Depth TVD: MPSP (psi): P;:sgs 4,0Y Junk (MD): 11,078 9,967 10,707 ` 9,600 ' 2,585 psi NIA NIA Casing Length Size MD TVD Burnt ./ Collapse Structural VN Conductor 24" 350 Tg Surface 2 38' 13-3J8" 938' 2,71 3.450 rx 1.950 psi Intermediate Production 8,672' 8,672' ,712' 13.99u3i ?.35rS r,i Liner 2,632' 7" 11,031' 9,923' 3.130 psl 7.023 aI Perforation Depth MD 1Y Penfo Depth TVD (ft): Tubing Size: Tubing Grade: T u;ltp 10,105 - 10,744 18,999 - 9,A 13-1t2" 19.2# / L-80 8.650 Packers and SSSV ype: Parke and SSSV MD (ft) and TVD in). Turin Set Hyd Pkr TE-5 SSSV 38 (MD) 383' (TVD) & 364' (MD) 3" (TVD) 12. Attachments Proposal Summary G] Wellbore s erratic . Well Class after proposed work: Detaled Ope s Program El BOP Sketch Exploratory [J Stratigraphic ❑ Development E] ` Service ❑ 14. Estimated to for 15. Well Status after proposed work: Commencin Operations: 9l1/2016 OIL ❑ WINJ ❑ WDSPL ❑ Saspended 0 16. Verbal proval: Date: GAS ❑ WAG ❑ GSTOR [ISPLUG ❑ Aisendoned Commissi Representative: GINJ ❑ Op Shutdown ❑ ❑ 17. I he y certify that the foregoing is true and the procedure approved herein.. I not be deviated from without prior written approval. Contact D97! Ve mv-a ,9z77 _83-1329 EmaM #-nmiftowefthilpor corn Printed ame Stan W. Golls Title Operations Manager Si natu tA-, Phone 90 777-8356 Data -7 jf Z'S' f ( w COMMISSION USE ONLY Conditio s of approval: Notify Commission so that a representative may witness Sundry Number Plug Integrity ❑ /�1 BOP Test h0 Other: Q 00 J ,0 5 r Mechanical Integrity Test ❑ rW r— 1 S r � Location Clearance ❑ �r � ao A�- Pk-� 5 Z-z A,4,c. Post Initial Injection MIT Req'd? Yes ❑ NO ❑ Spacing ��F��=•� Exception Required`?�� es ❑ Subsequent Form Required: +fit f3h 4pproved by: COMMISSIONER APPROVED BY THE COMMISSION Date: l 7 Zi-4 Form 10.403 Revised 1112015 Submit Farm nd 0R*1*Al6 ldfor 12 months from the date of a�rovBL Attachments in Duplicate Hileorp Alaska, LLC RKB to Sea Level (MSL) =100' KB 35' ..� HB-6 ' t.m TD=11,078' PBTD=10,933' Max Hole Angle = 340 SCHEMATIC McArthur River Field Well: K-26RD Last Completed: 11/06/2014 PTD: 195-083 CASING DETAIL SIZE WT GRADE CONN TOP BTM. 24" 186 X-56 Weld 0 350' 13-3/8" 68 K-55 BTC 0 2938' 9-5/S" 53.5 Pilo BTC 0 8672' 7" 29 L-80 BTC 8399' 11031' TUBING DETAIL 9.2 L 80 Supermax Surf 8,650 JEWELRY DETAIL No Depth (MD) Depth (TVD) ID Item 1 364' 364' 2.813 TE-5 SSSV 2 383' 383' 3.00 Twin Seal Hyd Packer (Packer has not been set) 3 407' 407' 2.813 X-Nipple 4 419' 419' 2.810 GLM w/Orifice 5 8,650' 7,692' - Discharge: Solt -On 6 8,651' 7,693' - Pump (x5) Summit 400 Series 7 8,765' 7,785' - Seals 8 8,782' 7,799' - Motor (x2) Summit 456 Series 9 8,850' 7,853' - Centralizer/Anode PERFORATION DETAIL Zone Top (MD) Btm (MD) Top (TVD) (Btnn) Condition Date G-5 10,105' 10,195' 8'999, 9,089, G-5 10,124' 10,191' 9,019' 9,086' Open 11/02/14 H-1 10,300' 10,328' 9,194' 9,222' H-1 10,304' 10,326' 9,199' 9,221' Open 11/02/14 H-2 10,368' 10,410' 9,262' 9,304' H-2 10,378' 10,438' 9,273' 9,333' Open 11/02/14 H-4 10,420' 10,440' 9,314' 9,334' H-4 10,480- 30,512' 9,374' 9,405' H-3 10,500' 10,506' 9,395' 9,401' Open 11/02/14 H-4 10,533' 10,580' 9,426' 9,473' H-4 10,538' 10,587' 9,433' 9,482' Open 11/02/14 H-4,5,6 10,602' 10,702' 9,495' 9,595' H-4 10,606' 10,616' 9,501' 9,511' Open 11/02/14 H-5 10,630' 10,655, 9,525' 9,550' Open 11J02/14 H-6 10,718' 10,744' 9,611' 1 9,637' Updated By: JLL 12/05/14 C ±1 C1 Ri ±I RKB to Sea Level (MSL) =100' KB 35' TD=11,018' PBTD=10,933' Max Hole Angle = 341 PROPOSED McArthur River Field Well: K-26RD Last Completed: Future PTD: 195-083 CASING DETAIL SIZE Wr Gf2AbE CONN TOP BTM. 24" 186 X-56 Weld 0 350' 13-3/8" 68 K-55 BTC 0 2938' 9-5/8" 53.5 P110 BTC 0 8672' 7" 29 L-80 BTC 8399' 11031, TUBING DETAIL N/A JEWELRY DETAIL [No Depth (MD) Depth (TVD) ID Item 1 ±6,000' ±5,361' CIBP (set for whipstock) 2 ±8,350' 17,440' Cement Retainer PERFORATION DETAIL Zone Top (MD) 8tm (MD) Top (TVD) Btm (TVD) Date Status G-5 10,105 10,195' 8,999' 91089' Cemented G-5 10,124' 10,191' 9,019' 9,086' 11/02/14 H-1 10,300' 10,328' 9,194' %222' H-1 10,304' 107326' 9,199' 9,221' 11/02/14 H-2 10,368' 10,430' 9,262' 9,304' H-2 10,378' 10,438' 9,273' 9,333' 11/02/14 H-4 10,420' 10,440' 9,314' 9,334' H-4 10,480' 10,512' 9,374' 9,405' H-3 10,500, 10,506, 9,395, 9,401' 1 11/02/14 H-4 10,533' 10,580' 9,426' 9,473' H-4 10,538' 10,587' 9,433' 9,482' 11/02/14 H-4,5,6 10,602' 10,702' 9,495' 9,595' H-4 10,606, 10,616' 9,501' 9,511' 11/02/14 H-5 1 10,630' 10,655' 9,525' 9,550' 11/02/14 H-6 10,718' 30,744' 9,611' 9,637' ,•71 - to 7ov •• gyov 0371 6PF Updated By. ILL 07/19/16 Davies, Stephen F (DOA) From: Monty Myers <mmyers@hilcorp.com> Sent: Monday, August 08, 2016 11:07 AM To: Davies, Stephen F (DOA) Cc: Bettis, Patricia K (DOA); Schwartz, Guy L (DOA) Subject: RE: TBU K-26RD2 (PTD #216-097) - Questions Concerning the Permit to Drill Application Steve, Please see the answers to your questions in red below. If you require any paperwork to be re -submitted please let me know and we can bring it over. Thank you for your questions and please let me know what others you may have. Monty M Myers Drilling Engineer Hilcorp Alaska Office: 907.777.8431 Cell: 907.538.1168 From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Friday, August 05, 2016 2:27 PM To: Monty Myers Cc: Bettis, Patricia K (DOA); Schwartz, Guy L (DOA) Subject: TBU K-26RD2 (PTD #216-097) - Questions Concerning the Permit to Drill Application Monty, I'm reviewing this Permit to Drill application, and I have a few questions for you. I notice that the application states the surface location is 715' FSL and 132' FEL of Section 17. But the Completion Report for the existing wellbore (TBU K-26 RD, PTD 195-083) places the surface location at 725' FNL and 133' FWL of Section 17. 1 know this is a minor discrepancy, but it may signify the wrong slot in the platform leg. Which is correct? The platform was re -surveyed by McLane in 2014 and I believe that is where the discrepancies are coming from. Spatially I believe our new survey is correct. We will most definitely be on the correct well slot. A B C D E F G _H_.._I ._ 1 Original Location New As -Built 2 Slots well name Y X 27 Slot 25 28 Slot 26 K-26RD K-01RD 2511799 2511798 213760 2137% Y X . dY dX - 2511790 213764.5 = 9.248 -4.548 - 2511789 213760.7 = 9.43 -4.661 The Completion Report for the existing wellbore (TBU K-26 RD, PTD 195-083) states that the water depth is 100', but the Halliburton Standard Proposal Report (proposed survey) places it at 62'. Which is correct? (Halliburton's proposed survey also places the well reference (KB) at 100', which is also seems to be a bit off.) The depths stated on page 2 are correct. 73' for the water depth and 122' for KB of Kuukpik 5 on King salmon. I will have Halliburton correct the standard proposal report. I'm not sure why the old completions report state 100'. What is the basis for the 0.43 psi/ft gradient predicted for the K-26RD2 well? Was it A-27RD2? Yes On what evidence? 1 We ran a PBU in the A-27RD2 on 7/2/2016 and the well was continuing to build pressure after 24 hours with the final recorded static pressure of —3410# (0.36 psi/ft). The P* indicated during the survey was 4421# (0.46 psi/ft). Pbar is going to be less than P* and more than the final recorded pressure so 0.43 psi/ft was used. Did Hilcorp encounter any problems while drilling A-27RD2? No drilling problems with gas or well flowing. Always static. Drilling was actually pretty decent. I notice that the mud weights plotted for A-27RD2 on the "Offset MW vs Depth TVD" chart in the application package are a bit different (about 0.1 to 0.2 ppg lower) than those recorded during the more complete drilling mud analyses that are shown in the Remarks column of the "Sin Formation Log MD" for A-27RD2. From that mud log I see the following. Please let me know if I've read these incorrectly. A-27RD2 Mud Weights MD TVD 9.50 10520 7,998 9.45 10980 8,403 9.45 11590 8,981 9.55 12250 9,527 9.50 13490 9,675 9.50 13750 9,687 9.40 14005 9,701 9.50 14220 9,711 These are correct. My spreadsheet was pointing to the planned MW column instead of actual. Has been corrected. When we changed to OBM we planned to keep it at 9.2-9.5 and due to solids loading it creeped up to 9.5. Will K-26RD2 cross any faults? If so, will it encounter any undrilled fault blocks? No we will not be drilling across any faults Will Hilcorp have additional drilling mud components on the platform to mitigate any unexpected pressures? If so, what is the maximum mud weight obtainable with those particular components? We will have additional barite on the platform while drilling to weight up the system an additional 1 ppg over the MW in the hole. With our plan calling for 9.2-9.5 ppg, we will have enough barite and salt to weight up to 10.5 ppg. When calculating the MASP for K-26RD2, Hilcorp assumes: "Pore pressure minus 2/3 of the wellbore evacuated to gas and the remaining 1/3 full of 9.2 ppg drilling mud." Regulation 20 AAC 25.002(C)(4)(A) specifies that maximum potential surface pressure be based on a pressure gradient to the surface of 0.1 psi/ft of true vertical depth (I calculate about 3,250 psi in this manner), unless the AOGCC approves a different pressure gradient. What is the basis for Hilcorp's method? The basis for the 2/3 evacuation comes from knowing that the formations that will be penetrated are full of water/oil from the production over the years. Has AOGCC approved Hilcorp's alternative method? AOGCC has approved this method on numerous occasions for Hilcorp, and for other operators in the past for the fields we have assumed control over. Most recently on A-27RD2 (offshore), and Greystone #1 (onshore). I asked for a variance on A-27RD2, but on the approved permit, there was a hand written note that said the variance was not required. Since this well is going to the same bottom hole location I calculated the MASP using the same method and didn't think a variance would be required so I took the verbiage out of the drilling program. Do any of the surrounding wells drilled from King Salmon Platform or Monopod Platform to this reservoir produce H2S? If so, which ones? How close are they to the proposed redrill within the reservoir? Yes, A-27RD2 is actually producing 150 ppm of 1-12S. The injection gas on the platform also has 380 ppm H2S platform combined average. The proposed TD of K-26RD2 is within 100' of A-27RD2. Thanks for your help. Regards, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 AOGCC: 907-279-1433 Fax: 907-276-7542 333 West 7`h Avenue, Suite 100 Anchorage, AK 99501 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Steve Davies at 907-793-1224 or steve.davies@alaska.gov. Sent from my desktop PC Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Friday, August 05, 2016 2:27 PM To: Monty Myers (mmyers@hilcorp.com) Cc: Bettis, Patricia K (DOA); Schwartz, Guy L (DOA) Subject: TBU K-26RD2 (PTD #216-097) - Questions Concerning the Permit to Drill Application Monty, I'm reviewing this Permit to Drill application, and I have a few questions for you. I notice that the application states the surface location is 715' FSL and 132' FEL of Section 17. But the Completion Report for the existing wellbore (TBU K-26 RD, PTD 195-083) places the surface location at 725' FNL and 133' FWL of Section 17. 1 know this is a minor discrepancy, but it may signify the wrong slot in the platform leg. Which is correct? The Completion Report for the existing wellbore (TBU K-26 RD, PTD 195-083) states that the water depth is 100', but the Halliburton Standard Proposal Report (proposed survey) places it at 62'. Which is correct? (Halliburton's proposed survey also places the well reference (KB) at 100', which is also seems to be a bit off.) What is the basis for the 0.43 psi/ft gradient predicted for the K-26RD2 well? Was it A-27RD2? On what evidence? Did Hilcorp encounter any problems while drilling A-27RD2? I notice that the mud weights plotted for A-27RD2 on the "Offset MW vs Depth TVD" chart in the application package are a bit different (about 0.1 to 0.2 ppg lower) than those recorded during the more complete drilling mud analyses that are shown in the Remarks column of the "Sin Formation Log MD" for A-27RD2. From that mud log I see the following. Please let me know if I've read these incorrectly. A-27RD2 Mud Weights MD TVD 9.50 7,998 9.45 8,403 9.45 8,981 9.55 9,527 9.50 9,675 9.50 9,687 9.40 9,701 9.50 9,711 Will K-26RD2 cross any faults? If so, will it encounter any undrilled fault blocks? Will Hilcorp have additional drilling mud components on the platform to mitigate any unexpected pressures? If so, what is the maximum mud weight obtainable with those particular components? When calculating the MASP for K-26RD2, Hilcorp assumes: "Pore pressure minus 2/3 of the wellbore evacuated to gas and the remaining 1/3 full of 9.2 ppg drilling mud." Regulation 20 AAC 25.002(C)(4)(A) specifies that maximum potential surface pressure be based on a pressure gradient to the surface of 0.1 psi/ft of true vertical depth (I calculate about 3,250 psi in this manner), unless the AOGCC approves a different pressure gradient. What is the basis for Hilcorp's method? Has AOGCC approved Hilcorp's alternative method? Do any of the surrounding wells drilled from King Salmon Platform or Monopod Platform to this reservoir produce H2S? If so, which ones? How close are they to the proposed redrill within the reservoir? Thanks for your help. Regards, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 AOGCC: 907-279-1433 Fax: 907-276-7542 333 West 7`h Avenue, Suite 100 Anchorage, AK 99501 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Steve Davies at 907-793-1224 or steve.davies@alaska.gov. Sent from my desktop PC TRANSMITTAL LETTER CHECKLIST WELL NAME: PTD: ��L Development Service _ Exploratory _ Stratigraphic Test _ Non -Conventional FIELD: POOL: 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 MCARTHUR RIVER, HEMLOCK OIL - 520120 _ Well Name: TRADING BAY UNIT K-26RD2 Program DEV Well bore seg PTD# 2160970 Company HILCORP ALASKA LLC Initial Class/Type DEV / 1-OIL GeoArea 820 Unit 12070 On/Off Shore Off Annular Disposal Administration 17 Nonconven. gas conforms to AS31,05,030Q.1_.A),(j.2.A-D) NA_ 1 Permit -fee attached - - - - - NA_ ... - - - - - - - - - - - - - - - - . _ . - . 2 Lease number appropriate_ Yes Entire Well lies within ADL0017594._ 3 Unique well name and number - Yes 4 Well located in a_ defined_ pool. - - - - Yes . McArthur River Hemlock Oil Pool --governed by -CO 228A_ 5 Well -located proper distance from drilling unit -boundary. - Yes CO228A contains no -spacing- restrictions with respect to drilling _lin unit boundaries._ 6 Well located proper distance from other wells_ Yes CO228A has no interwell spacing restrictions. - - - - - - - - - - 7 Sufficient acreage available in drilling unit_ Yes Well bore will be more than _500' from an external property_ line where ownership or landownership changes. 8 If deviated, is_wellbore plat included Yes '9 Operator only affected party- - - Yes 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 SFD 8/8/2016 - - - - - - - - 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_ (For service well only) N_A_ 18 Conductor string_ provided NA_ _ _ _ _ _ _ . Con-ductor set_in K-26 _ _ _ _ _ _ _ _ - - - - - _ .. _ - Engineering 19 Surface casing_ protects all -known_ USDWs - - NA_ 20 CMTvol adequate_to circulate_on conductor_& surf.csg - - - - - NA- 21 CMT_vol adequate to tie-in long string to -surf csg- - - - - - - - - - NA. Sidettacking_well at depth of 6000 ftMD. _ Exiting the 9 5/8" int. casing. _ 22 CMT will coverall known -productive horizons_ - - - - ----------------------- Yes 7"_liner will_b_e_cemented_ back to,10000ft_MD. _TOL_is at 5800_ft. 23 -Casing designs adequate for C, T, B &_ permafrost- - - - - - - - Yes ... BTC ca_Ic provided and meet industry standards_ - - - - - - 24 Adequate_ tankage_ or reserve pit Yes Rig has steel pits; Waste to -be -hauled to Kenai G_& I_ 25 If_a- re -drill, has a 1.0-403 for abandonment been approved Yes - - - - - - K-26RD P &A sundry 316-386 - - .. . . - - - - - - - 26 Adequate wellbore separation_proposed- - - - - - - - - - - - - - Yes Proximity analysis performed. Close approaches to A-2.7_RD (_P &A ) at tail.of well. 27 If_diverter required, does it meet_ regulations. - - - - - - - - NA_ Wellhead in place .-BOPE will be used._ - - - - - - - - - - - - - - - - - - - Appr Date 28 Drilling fluid_ program schematic_& equip -list -adequate - - - - - - Yes Max form. Pressure= 4711 psi ( 9.2 ppg EMW) Will drill with 9.5ppg Mud.. GLS 8/23/2016 29 BO_PEs,_do they meet regulation - - - - - - - - Yes Kuukpik 5 has_ 1.3.5/8"_5000 psi BOPE.. . . . .. . . . .. . 30 B_OPE_press rating appropriate; test to (put psig in comments)_ - - - Yes MASP= 2664 psi Will test BOPE to 3500 psi ( alt. MASP.calc .2/3 gas) 31 Choke manifold complies w/API-RP-53 (May 84)_ _ _ - _ _ _ I Yes _ _ _ _ - - - - - _ - - - - - - - 32 Work will occur without operation shutdown_ - - - - - - . - - - - - Yes sundry required_for Compl_etion_oper_ations- - - . 33 Is presence of H2S gas_ probable - - - - - - - - - - - - - - - - - - - - - Yes H2S expected. Rig has sensors and alarms, . 34 Mechanical_condition of wells within AOR verified (For_ service well only) - - - - - - - - - - - - - - NA_ 35 Permit can be issued w/o hydrogen_ sulfide measures - - - - - - - - - - - - - - - - - - - - - - - No_ - - - Nearby -well A-27RD2 produces 150-ppm_H2S. Measured required. Geology 36 Data -presented on potential overpressure zones - - - - - - - - - - - - - - - - - - - - - - - - - Yes Expected reservoir pressure is 8.3-8.9 ppg; will be drilled using 9.2-9.5 ppg_o_il-base_mud. Appr Date 37 _- zones_ - - - - - - - Seismic_analysis_ of shallow gas ---- --------- - - - - N_A_ Operatorwill_ have supplies on rig to -mix mud weighing -up -to 10.5 ppg, if needed. SFD 8/8/2016 38 Seabed condition survey -(if off -shore) - - - - - - - - - - - - - - - - - - - - NA_ - - - - - - - - - - - 39 Contact -name/phone for weekly -progress reports_ [exploratory only) - - - - - - - - - - - - - N-A_ - - - - - - - Monty Myers, 907-777-8431 Geologic Engineering Public Rig inspection required before operations commence with Kuukpik #5. A separate sundry is needed for completion operations. Commissioner: Date: Com issioner: Date Co issi Date GIs pis016 qe,.�S-/ C El