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Home My WebLink About216-102ConocoPhillips p Alaska P.O. BOX 100360 ANCHORAGE, ALASKA 99510-0360 October 26, 2016 Commissioner - State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Avenue Suite 100 Anchorage, Alaska 99501 Dear Commissioner: RECEIVED NOV 0 2 2016 ConocoPhillips Alaska, Inc. hereby submits applications for permits to drill a quad -lateral out of the KRU 3M-24 (PTD# 193-195) using the coiled tubing drilling rig, Nabors CDR2-AC or Nabors CDR3-AC. The scope of the work and window exit type for KRU 3M-24 have been modified from a cement pilot -hole casing exit to a big tail -pipe casing exit. For this reason, please cancel the previously issued sundry (316-423) and permits to drill 216-100, 216-101, 216-102, and 216-103 for 3M-24. To account for geological uncertainties, ConocoPhillips requests a variance from the requirements of 20 AAC 25.015 to allow the actual kick-off point to be anywhere along the length of the parent lateral instead of being limited to 500' from the original point. The CTD objective will be to drill four laterals (31VI-241-1, 31VI-241-1-01, 31VI-241-1-02, & 31VI-241-1-03), targeting the Kuparuk A -sand intervals. The work is scheduled to begin November 15, 2016. Attached to this application are the following documents: — Permit to Drill Application Forms (10-401) for 3M-24L1, 3M-24L1-01, 31VI-241-1-02, & 31VI-241-1-03 — Detailed Summary of Operations — Directional Plans for 31VI-241-1, 31VI-241-1-01, 31VI-241-1-02, & 31VI-241-1-03 — Current wellbore schematic — Proposed wellbore schematic If you have any questions or require additional information, please contact me at 907-263-4321. Sincerely, 1 Keith Herring Coiled Tubing Drilling Engineer ConocoPhillips Alaska THE STATE I I wa's ar, a, im me GOVERNOR BILL WALKER J. Burke CTD Coordinator ConocoPhillips Alaska, Inc. P.O. Box 100360 Anchorage, AK 99510-0360 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov Re: Kuparuk River Field, Kuparuk River Oil Pool, KRU 3M-24AL2 ConocoPhillips Alaska, Inc. Permit to Drill Number: 216-102 Surface Location: 985' FNL, 1612' FEL, Sec. 25, T13N, R8E, UM Bottomhole Location: 4196' FNL, 4317' FEL, Sec. 26, T13N, R8E, UM Dear Mr. Burke: Enclosed is the approved application for permit to re -drill the above referenced development well. The permit is for a new wellbore segment of existing well Permit No. 216-100, API No. 50-029- 22432-01-00. Production should continue to be reported as a function of the original API number stated above. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or an AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Cathy 1. Foerster Chair DATED this 2 "3ay of September, 2016. FEI M F—D STATE OF ALASKA _..A OIL AND GAS CONSERVATION COW jN AUG 2 6 2016 PERMIT TO DRILL �OG� 20 AAC 25.005 1 a. Type of Work: 1 b. Proposed Well Class: Exploratory - Gas ❑ Service - WAG ❑ Service - Disp ❑ 1 c. Specify if well is proposed for: Drill ❑ Lateral Stratigraphic Test ❑ Development - Oil Service - Winj ❑ Single Zone [Z 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: ConocoPhillips Alaska Inc Bond No. 5952180 KRU 3M-24AL2 3. Address: 6. Proposed Depth: 12. Field/Pool(s): P.O. Box 100360 Anchorage, AK 99510-0360 MD: 14000' TVD: 6177' Kuparuk River Field / 4a. Location of Well (Governmental Section): 7. Property Designation (Lease Number): Surface: 985' FNL, 1612' FEL, Sec 25, T13N, R8E, M U ADL 25524 �S � 13 Kuparuk River Oil Pool ` Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 4175' FNL, 179 FEL, Sec 27, T13N, R8E, UM ALK 2655 9/15/2016 Total Depth: 9. Acres in Property: tlQj 14. Distance to Nearest Property: 4196' FNL, 4317' FEL, Sec 26, T13N, R8E, UM 1920 a5 (p0 6200' 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above MSL (ft): 68" 15. Distance to Nearest Well Open Surface: x- 506255 y- 6016513 Zone- 4 GL Elevation above MSL (ft): 27' - to Same Pool: 3M-08, 550' 16. Deviated wells: Kickoff depth: 12850' feet • 17. Maximum Potential Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 96 degrees Downhole: 4305 psig u a 3692 psig 18. Casing Program: Specifications Top - Setting Depth - VottWNCement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD `TVD (including stage data) 3" 2-3/8" 4.7* L-80 ST-L 1730' 12270' 6183 140OX 6177' Slotted Liner 19. PRESENT WELL CONDITION SUMMARY (To be completed for Red d Re- t perations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Eff D th MD ( Effect. Depth TVD (ft): Junk (measured): 12490' 6361' N/A 12382 6286' N/A Casing Length Size a nt MD TVD Conductor 121' 16" 4 2 x A MT 121' 121' Surface 5310' 9-5/8" x A§f & dOO sx Class G 5310' 3286' Production 12470' T' 250 x Class G 12470' 6347' Perforation Depth MD (ft): e on Depth TVD (ft): 12132' - 1 44' 6110' - 6189' 20. Attachments: Property Plat ❑ BOP Drilling ogram ❑� Time v. Depth Plot ❑ Shallow Hazard Analysis El DiverterWt Seabed Report ❑ Drilling Fluid Program E] 20 AAC 25.050 requiremen ❑✓ 21. Verbal Approval: Commission Representative: Date tJ Z�j 22. 1 hereby certify that the foregoing is true and the pro dure approved herein will not Keith Herring @ 263-4321 be deviated from without prior written approval. Contact Email Keith.E.Herring(pDcop.com Printed Name J. Burke Title CTD Coordinator Signature Phone 265-6097 Date Commission Use Only Permit to Drill PI Number: Permit Approval See cover letter for other Number: — 0 -�' /50-� — — —Q(� Date: �� requirements. Conditions of approval : I ox is checked, well may not be used to explore for, test, or produce coalbed methane gas hydrates, or gas contained in shales: Other: /✓ p tC� t t z 0 U 5 i L SSamples req'd: Yes No � Mud log req'd: Yes ❑ o [� Z �� v} �'HzS�easures: Y� / Yes No ❑ Directional svy req'd: Yes [v]�N V AA C Z.7 , 67' 1 ,j C4)Spacing exception req'd: Yes ❑ Nov Inclination -only svy req'd: Yes ❑ NOVo /,5 5 ru ✓r fi� d f O a t!C 1'G -n i i a b-G a,l Post initial injection MIT req'd: Yes ❑ No ©-- � 12 v VYI a c7 t-ct -r parr�� i brt-rrul APPROVED BY ^7 Approved by COMMISSIONER THE COMMISSION Date:g / ►� / 7�/�� 6111 �Submit Form and Form 10-401 evised 11/2015) �i�jis®r�ili�r�irtpnt hs from the dat of approval (20 AAC 25.005(g)) Attachments in Duplicate ConocoPs philli Alaska P.O. BOX 100360 ANCHORAGE, ALASKA 99510-0360 August 26, 2016 Commissioner - State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Avenue Suite 100 Anchorage, Alaska 99501 Dear Commissioner: ConocoPhillips Alaska, Inc. hereby submits applications for permits to drill a quad -lateral out of the KRU 3M-24 (PTD# 193-195) using the coiled tubing drilling rig, Nabors CDR2-AC or Nabors CDR3-AC. The CTD objective will be to drill four laterals (3M-24A, 3M-24AL1, 3M-24AL2, & 3M-24AL3), targeting the Kuparuk A -sand intervals. The work is scheduled to begin September 15, 2016. To account for geological uncertainties, ConocoPhillips requests a variance from the requirements of 20 AAC 25.015 to allow the actual kick-off point to be anywhere along the length of the parent lateral instead of being limited to 500' from the original point. Attached to this application are the following documents: — Permit to Drill Application Forms (10-401) for 3M-24A, 3M-24AL1, 3M-24AL2, & 3M-24AL3 — Detailed Summary of Operations — Directional Plans for 3M-24A, 3M-24AL1, 3M-24AL2, & 3M-24AL3 — Current wellbore schematic — Proposed wellbore schematic The application for sundry approval (10-403) for KRU 3M-24 was approved on 08/19/2016. If you have any questions or require additional information, please contact me at 907-263-4321. Sincerely, Keith Herring Coiled Tubing Drilling Engineer r . Kuparuk CTD Laterals NABOAS ALASKA L 3M-24A, 3M-24AL1, 3M-24AL23 & 3M-24AL3 Application for Permit to Drill Document 2AC 1. Well Name and Classification........................................................................................................ 2 (Requirements of 20 AAC 25.005(o and 20 AAC 25.005(b))................................................................................................................... 2 2. Location Summary.......................................................................................................................... 2 (Requirements of 20 AAC 25.005(c)(2)).................................................................................................................................................. 2 3. Blowout Prevention Equipment Information................................................................................. 2 (Requirements of 20 AAC 25.005(c)(3))................................................................................................................................................. 2 4. Drilling Hazards Information and Reservoir Pressure.................................................................. 2 (Requirements of 20 AAC 25.005(c)(4))................................................................................................................................................. 2 5. Procedure for Conducting Formation Integrity tests................................................................... 2 (Requirements of 20 AAC 25.005(c)(5)).................................................................................................................................................. 2 6. Casing and Cementing Program.................................................................................................... 3 (Requirements of 20 AAC 25.005(c)(6)).................................................................................................................................................. 3 7. Diverter System Information.......................................................................................................... 3 (Requirements of 20 AAC 25.005(c)(7)).................................................................................................................................................. 3 8. Drilling Fluids Program.................................................................................................................. 3 (Requirements of 20 AAC 25.005(c)(8)).................................................................................................................................................. 3 9. Abnormally Pressured Formation Information............................................................................. 4 (Requirements of 20 AAC 25.005(c)(9)).................................................................................................................................................. 4 10. Seismic Analysis............................................................................................................................. 4 (Requirements of 20 AAC 25.005(c)(10))................................................................................................................................................4 11. Seabed Condition Analysis............................................................................................................ 4 (Requirements of 20 AAC 25.005(c)(11))................................................................................................................................................ 4 12. Evidence of Bonding...................................................................................................................... 4 (Requirements of 20 AAC 25.005(c)(12))................................................................................................................................................ 4 13. Proposed Drilling Program............................................................................................................. 4 (Requirements of 20 AAC 25.005(c)(13))................................................................................................................................................ 4 Summaryof Operations...................................................................................................................................................4 LinerRunning...................................................................................................................................................................6 14. Disposal of Drilling Mud and Cuttings.......................................................................................... 6 (Requirements of 20 AAC 25.005(c)(14))................................................................................................................................................ 6 15. Directional Plans for Intentionally Deviated Wells....................................................................... 6 (Requirements of 20 AAC 25.050(b))...................................................................................................................................................... 6 16. Attachments....................................................................................................................................7 Attachment 1: Directional Plans for 3M-24A, 3M-24AL1, 3M-24AL2, & 3M-24AL3.........................................................7 Attachment 2: Current Well Schematic for 3M-24...........................................................................................................7 Attachment 3: Proposed Well Schematic for 3M-24A, 3M-24AL1, 3M-24AL2, & 3M-24AL3...........................................7 Page 1 of 7 August 26, 2016 PTD Application: 31111-24A, 3M-t-4AL1, 3M-24AL2, & 3M-24AL3 1. Well Name and Classification (Requirements of 20 AAC 25.005(f) and 20 AAC 25.005(b)) The proposed laterals described in this document are 3M-24A, 3M-24AL1, 3M-24AL2, & 3M-24AL3. All laterals will be classified as "Development -Oil' wells. 2. Location Summary (Requirements of 20 AAC 25.005(c)(2)) These laterals will target the A sand package in the Kuparuk reservoir. See attached 10-401 form for surface and subsurface coordinates of the 3M-24A, 3M-24AL1, 3M-24AL2, & 3M-24AL3. 3. Blowout Prevention Equipment Information (Requirements of 20 AAC 25.005 (c)(3)) Please reference blowout prevention (BOP) schematics on file with the Commission for Nabors CDR2-AC. BOP equipment is as required per 20 AAC 25.036 for thru-tubing drilling operations. — Pipe rams, blind rams and the CT pack off will be pressure tested to 250 psi and to 4,200 psi. Using the maximum formation pressure in the area of 4,305 psi in 31VI-12 (i.e. 13.4 ppg EMW), the maximum potential surface pressure in 3M-24, assuming a gas gradient of 0.1 psi/ft, would be 3,692 psi. See the "Drilling Hazards Information and Reservoir Pressure" section for more details. — The annular preventer will be tested to 250 psi and 2,500 psi. 4. Drilling Hazards Information and Reservoir Pressure (Requirements of 20 AAC 25.005 (c)(4)) Reservoir Pressure and Maximum Downhole Pressure (Requirements of 20 AAC 25.005 (c)(4)(a)) The formation pressure in KRU 3M-24 was measured to be 3,566 psi (11.2 ppg EMW) on 8/2/2016. The maximum downhole pressure in the 31VI-24 vicinity is to the north in the 3M-12 injector at 4,305 psi (13.4 ppg EMW) from April of 2016. Due to a fault between the 3M-24 and the 3M-12, that high pressure is not expected during drilling operations. Potential Gas Zones (Requirements of 20 AAC 25.005 (c)(4)(b)) None of the offset injection wells to 31VI-24 have injected gas, so there is a low probability of encountering free gas while drilling the 31VI-24 laterals. If significant gas is detected in the returns the contaminated mud can be diverted to a storage tank away from the rig. Potential Causes of Hole Problems (Requirements of 20 AAC 25.005 (c)(4)(c)) The major expected risk of hole problems in the 3M-24 laterals will be shale instability across faults. Managed pressure drilling (MPD) will be used to reduce the risk of shale instability associated with fault crossings. 5. Procedure for Conducting Formation Integrity tests (Requirements of 20 AAC 25.005(c)(5)) The 31VI-24 laterals will be drilled under 20 AAC 25.036 for thru-tubing drilling operations so a formation integrity test is not required. Page 2 of 7 August 26, 2016 PTD Application: 3M-24A, 31111-i.4AL1, 3M-24AL2, & 3M-24AL3 6. Casing and Cementing Program (Requirements of 20 AAC 25.005(c)(6)) New Completion Details Lateral Name Liner Top Liner Btm Liner Top Liner Btm Liner Details MD MD TVDSS TVDSS 3M-24A 14100' 15450' 6134' 6183' 2-3/8", 4.7#, L-80, ST-L slotted liner; aluminum billet on top 3M-24AL1 12850' 15450' 6094' 6147` 2-3/8", 4.7#, L-80, ST-L slotted liner; aluminum billet on top 3M-24AL2 12270' 14000' 6115' 6109` 2-3/8", 4.7#, L-80, ST-L slotted liner; aluminum billet on to 3M-24AL3 12030' 14300' 5970' 6029' 2-3/8", 4.7#, L-80, ST-L slotted liner; deployment sleeve on top Existing Casing/Liner Information Category OD Weight (ppf) Grade Connection Top MD Btm MD Top TVD Btm TVD Burst psi Collapse psi Conductor 16" 62.5 H-40 Welded 0' 121' 0' 121' 1640 670 Surface 9-5/8" 47.0 J-5 BTC 0' 5310' 0' 3286' 3520 2220 Production 7" 26.0 J-55 BTC-MOD 0' 12470' 0' 6347' 4980 4320 Tubing 3-1/2" 9.3 L-80 EUE 0 12009' 0 6023' 10160 10530 7. Diverter System Information (Requirements of 20 AAC 25.005(c)(7)) Nabors CDR2-AC will be operating under 20 AAC 25.036, for thru-tubing drilling operations. Therefore, a diverter system is not required. 8. Drilling Fluids Program (Requirements of 20 AAC 25.005(c)(8)) Diagram of Drilling System A diagram of the Nabors CDR2-AC mud system is on file with the Commission. Description of Drilling Fluid System — Window milling operations: Chloride -based FloVis mud (8.6 ppg) — Drilling operations: Chloride -based FloVis mud (8.6 ppg). This mud weight will not hydrostatically overbalance the reservoir pressure, overbalanced conditions will be maintained using MPD practices described below. — Completion operations: The well will be loaded with 11.8 ppg NaBr completion fluid in order to provide formation over -balance and well bore stability while running completions. Managed Pressure Drilling Practice Managed pressure drilling (MPD) techniques will be employed to maintain a constant overbalanced pressure on the open hole formation and promote wellbore stability throughout the coiled tubing drilling (CTD) process. Mud weight is not, in many cases, the primary well control barrier. This is satisfied with the 5,000 psi rated coiled tubing pack off and MPD choke. BOPE equipment provides the secondary well control as detailed in section 3 "Blowout Prevention Equipment Information". In the 3M-24 laterals we will target a constant BHP of 11.8 ppg EMW at the window. The constant BHP target will be adjusted through choke pressure and/or mud weight increases to maintain overbalanced conditions if increased reservoir pressure is encountered. Additional choke pressure or increased mud weight may also be employed for improved borehole stability. Any change of circulating friction pressure due to change in pump rates or change in depth of circulation will be offset with back pressure adjustments. Page 3 of 7 August 26, 2016 PTD Application: 3M-24A, 3M-,.4AL1, 3M-24AL2, & 3M-24AL3 Pressure at the 31VI-24 Window (12173' MD, 6139' ND) Using MPD Pumps On 1.5 b m Pumps Off A -sand Formation Pressure 11.2 p 3575 psi 3575 psi Mud Hydrostatic 8.6 2745 psi 2745 psi Annular friction (i.e. ECD, 0.08 si/ft) 1035 psi 0 psi Mud + ECD Combined no chokepressure) 3780 psi overbalanced —205psi) 2745 psi underbalanced —830psi) Target BHP at Window 11.8 3767 psi 3767 psi Choke Pressure Required to Maintain Target BHP 0 psi 1021 psi 9. Abnormally Pressured Formation Information (Requirements of 20 AAC 25.005(c)(9)) N/A - Application is not for an exploratory or stratigraphic test well. 10. Seismic Analysis (Requirements of 20 AAC 25.005(c)(10)) N/A - Application is not for an exploratory or stratigraphic test well. 11. Seabed Condition Analysis (Requirements of 20 AAC 25.005(c)(11)) N/A - Application is for a land based well. 12. Evidence of Bonding (Requirements of 20 AAC 25.005(c)(12)) Evidence of bonding for ConocoPhillips Alaska, Inc. is on file with the Commission. 13. Proposed Drilling Program (Requirements of 20 AAC 25.005(c)(13)) Summary of Operations Background Well KRU 3M-24 is a Kuparuk A -sand and C-sand producer equipped with 3-1/2" tubing and 7" production casing. The CTD sidetrack will utilize four laterals to target the Al and A2 sands to the east and west of the 3M-24. The laterals will add new resources and improve existing recovery. Prior to CTD operations, E-line will punch 2' of holes in the 3-1/2" tubing tail and the D nipple at 12037' MD will be milled out to a 2.80" ID. The existing A -sand and C-sand perforations will be squeezed with cement and the 3-1/2" tubing tail will be cemented in place to provide a means to kick out of the 7" casing. Following the cement squeeze Nabors CDR2-AC or Nabors CDR3-AC will drill a pilot hole to 12210' MD and set a mechanical whipstock in the 2.80" pilot hole to kick off at 12173' MD. A window will be milled in the 7" casing at 12173' MD to drill and complete the 3M-24A, 3M-24AL1, 3M-24AL2, and 3M-24AL3 laterals. The 3M-24A sidetrack will exit the cement pilot hole at 12173' MD and TD at 15450' MD, targeting the Al sand to the east. It will be completed with 2-3/8" slotted liner from TD up to 14100'MD with an aluminum billet for kicking off the 3M-24AL1 lateral. The 3M-24AL1 lateral will drill to the east to a TD of 15450' MD targeting the A2 sand. It will be completed with 2-3/8" slotted liner from TD up to 12850' MD with an aluminum billet for kicking off the 3M-24AL2 lateral. Page 4 of 7 August 26, 2016 PTD Application: 3M-24A, 3M-,_4AL1, 3M-24AL2, & 3M-24AL3 The 3M-24AL2 lateral will drill to the east to a TD of 14000' MD targeting the A2 sand. It will be completed with 2-3/8" slotted liner from TD up to 12270' MD with an aluminum billet for kicking off the 3M-24AL3 lateral. The 3M-24AL3 lateral will drill to the west to a TD of 14300' MD targeting the Al sand. It will be completed with 2-3/8" slotted liner from TD up to 12030' MD with a deployment sleeve back into the 3- 1/2" tubing. Pre-CTD Work 1. RU Slickline: Obtain SBHP, dummy off gas lift mandrels, and pressure test. 2. RU E-line: Punch 2' of holes in the 3-1/2" tubing tail at 12035' MD. 3. RU Pumping Unit: Perform injectivity test down the tubing. 4. RU Service Coil: Mill out "D" nipple and cement squeeze the A/C -sand perforations up to the holes in the tubing tail. 5. RU Slickline: Tag top of cement and pressure test cement. 6. Prep site for Nabors CDR2-AC or Nabors CDR3-AC rig and set BPV. Rig Work 1. MIRU Nabors CDR2-AC or Nabors CDR3-AC rig using 2" coil tubing. NU 7-1/16" BOPE, test. 3M-24A Sidetrack (Al sand - east) a. Mill 2.80" high -side pilot hole through the cement to 12210' MD. b. Caliper pilot hole. c. Set top of whipstock at 12173' MD. d. Mill 2.80" window at 12173' MD. e. Drill 3" bi-center lateral to TD of 15540' MD. f. Run 2-3/8" slotted liner with an aluminum billet from TD up to 14100' MD. 3. 3M-24AL1 Lateral (A2 sand - east) a. Kick off of the aluminum billet at 14100' MD. b. Drill 3" bi-center lateral to TD of 15450' MD. c. Run 2-3/8" slotted liner with an aluminum billet from TD up to 12850' MD. 4. 3M-24AL2 Lateral (A2 sand - east) a. Kick off of the aluminum billet at 12850' MD. b. Drill 3" bi-center lateral to TD of 14000' MD. c. Run 2-3/8" slotted liner with an aluminum billet from TD up to 12270' MD. 5. 3M-24AL3 Lateral (A1 sand - west) a. Kick off of the aluminum billet at 12270' MD. b. Drill 3" bi-center lateral to TD of 14300' MD. c. Run 2-3/8" slotted liner with a deployment sleeve from TD up to 12030' MD. 6. Freeze protect, set BPV, ND BOPE, and RDMO Nabors CRD2-AC or Nabors CDR3- AC rig. Post -Rig Work 1. Pull BPV. 2. Obtain SBHP. 3. Install gas lift design. 4. Return to production. Page 5 of 7 August 26, 2016 PTD Application: 3M-24A, 3M-t-,AL1, 3M-24AL2, & 3M-24AL3 Pressure Deployment of BHA The planned bottom hole assemblies (BHAs) are too long to simply isolate by closing the double swab valves on the Christmas tree. MPD operations require the BHA to be lubricated under pressure using a system of double swab valves on the Christmas tree, double deployment rams, double check valves and double ball valves in the BHA, and a slick -line lubricator can be used. This pressure control equipment listed ensures there are always two barriers to reservoir pressure, both internal and external to the BHA, during the deployment process. During BHA deployment, the following steps are observed. — Initially the double swab valves on the tree are closed to isolate reservoir pressure. The lubricator is installed on the BOP riser with the BHA inside the lubricator. — Pressure is applied to the lubricator to equalize across the swab valves. The swab valves are opened and the BHA is lowered in place via slickline. — When the BHA is spaced out properly, the double deployment rams are closed on the BHA to isolate reservoir pressure via the annulus. A closed set of double ball valves and double check valves isolate reservoir pressure internal to the BHA. Slips on the double deployment rams prevent the BHA from moving when differential pressure is applied. The lubricator is removed once pressure is bled off above the deployment rams. — The coiled tubing is made up to the BHA with the double ball valves plus the double check valves in the closed position. Pressure is applied to the coiled tubing to equalize internal pressure and then the double ball valves are opened. The injector head is made up to the riser, annular pressure is equalized, and the deployment rams are opened. The BHA and coiled tubing are now ready to run in the hole. During BHA undeployment, the steps listed above are observed, only in reverse. Liner Running — The 3M-24 laterals will be displaced to an overbalancing fluid (11.8 ppg NaBr) prior to running liner. See "Drilling Fluids" section for more details. — While running 2-3/8" slotted liner, a joint of 2-3/8" non -slotted tubing will be standing by for emergency deployment. A floor valve is made up onto this joint ahead of time, and the rig crew conducts a deployment drill with this emergency joint on every slotted liner run. The 2-3/8" rams will provide secondary well control while running 2-3/8" liner. 14. Disposal of Drilling Mud and Cuttings (Requirements of 20 AAC 25.005(c)(14)) • No annular injection on this well. • All solid waste will be transported to the grind and inject facility at DS-4 Prudhoe Bay for disposal. • Incidental fluids generated from drilling operations will be injected in a Kuparuk Class II disposal well (1 R-18 or 1 B disposal facilities) or Prudhoe DS-4 if a Kuparuk facility is unavailable. • All wastes and waste fluids hauled from the pad must be properly documented and manifested. • Contact Kuparuk Environmental Coordinator for questions regarding waste classification. (670-4200). 15. Directional Plans for Intentionally Deviated Wells (Requirements of 20 AAC 25.050(b)) — The Applicant is the only affected owner. — Please see Attachment 1: Directional Plans — Magnetic and inclination surveys will be taken every 30 ft. No gyro will be run. — MWD directional, resistivity, and gamma ray will be run over the entire open hole section. — Distance to Nearest Property Line (measured to KPA boundary at closest point) Lateral Name Distance 3M-24A 6200' 3M-24AL1 6200' 3M-24AL2 6200' 3M-24AL3 4400' Page 6 of 7 August 26, 2016 PTD Application: 3M-24A, 3M-t--,AL1, 3M-24AL2, & 3M-24AL3 — Distance to Nearest Well within Pool Lateral Name Distance Well 3M-24A 550' 3M-08 3M-24AL1 550, 3M-08 3M-24AL2 550' 3M-08 3M-24AL3 2103' 3M-28 16. Attachments Attachment 1: Directional Plans for 3M-24A, 3M-24AL1, 3M-24AL2, & 3M-24AL3 laterals Attachment 2: Current Well Schematic for 3M-24 Attachment 3: Proposed Well Schematic for 3M-24A, 3M-24AL1, 3M-24AL2, & 3M-24AL3 laterals Page 7 of 7 August 26, 2016 w W �kvz we `b9_ G a� 3 t JCL 0 0 c 0 v ConocoPhillips ConocoPhillips (Alaska) Inc. -Kup2 Kuparuk River Unit Kuparuk 3M Pad 3M-24 3 M-24A L2 Plan: 3M-24AL2_wp02 Standard Planning Report 18 August, 2016 we 0 P _- 'A as BAKER HUGHES ConocoPhillips Database: EDM Alaska NSK Sandbox Company: ConocoPhillips (Alaska) Inc. -Kup2 Project: Kuparuk River Unit Site: Kuparuk 3M Pad Well: 3M-24 Wellbore: 3M-24AL2 Design: 3 M-24A L2_wp02 ConocoPhillips Planning Report Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Well 3M-24 Mean Sea Level 3M-24 @ 68.00usft (3M-24) True Minimum Curvature Project Kuparuk River Unit, North Slope Alaska, United States Map System: US State Plane 1927 (Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927 (NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Using geodetic scale factor Fur .I BAKER HUGHES Site Kuparuk 3M Pad Site Position: Northing: 6,016,202.17 usft Latitude: 70° 27' 19.780 N From: Map Easting: 506,126.99usft Longitude: 149° 56' 59.998 W Position Uncertainty: 0.00 usft Slot Radius: 0.000 in Grid Convergence: 0.05 ° Well 3M-24 Well Position +N/-S 0.00 usft Northing: 6,016,514.00 usft Latitude: 70° 27' 22.846 N +E/-W 0.00 usft Easting: 506,256+08 usft Longitude: 149° 56' 56.198 W Position Uncertainty 0.00 usft Wellhead Elevation: usft Ground Level: 0.00 usft Wellbore 3M-24AL2 i Magnetics Model Name Sample Date Declination Dip Angle Field Strength BGGM2016 11/1/2016 17.92 81.01 57,550 Design 3M-24AL2_wp02 Audit Notes: Version: Phase: PLAN Tie On Depth: 12,850.00 Vertical Section: Depth From (TVD) +N/-S +E/-W Direction (usft) (usft) (usft) (°) 0.00 0.00 0.00 90.00 - Survey Tool Program Date 8/18/2016 From To (usft) (usft) Survey (Wellbore) Tool Name Description 72.64 12,142.37 3M-24 (3M-24) GCT-MS Schlumberger GCT multishot 12,142.37 12,850.00 3M-24A_wp05 (3M-24A) MWD MWD - Standard 12,850.00 14,000.00 3M-24AL2_wp02 (3M-24AL2) MWD MWD - Standard Plan Sections I Measured TVD Below Dogleg Build Turn Depth Inclination Azimuth System +N/-S +E/-W Rate Rate Rate TFO (usft) (°) (°) (usft) (usft) (usft) (°/100ft) (°/100ft) (°/100ft) (°) Target 12,850.00 90.43 94.39 6,093.83 -3,185.33 -9,126.02 0.00 0.00 0.00 0.00 12,950.00 96.49 90.88 6,087.79 -3,189.93 -9,026.37 7.00 6.06 -3.52 330.00 13,050.00 94.06 84.28 6,078.60 -3,185.71 -8,926.95 7.00 -2.43 -6.59 250.00 13,150.00 91.08 77.94 6,074.11 -3,170.28 -8,828.31 7.00 -2.98 -6.34 245.00 13,250.00 90.46 84.91 6,072.77 -3,155.39 -8,729.50 7.00 -0.62 6.97 95.00 13,450.00 88.04 98.71 6,075.39 -3,161.68 -8,530.11 7.00 -1.21 6.90 100.00 13,600.00 87.16 88.23 6,081.69 -3,170.75 -8,380+73 7.00 -0.58 -6.98 265.00 13,800.00 86.04 102.21 6,093.60 -3,188.86 -8,182+41 7.00 -0.56 6.99 95.00 14,000.00 84.95 88.21 6,109.39 -3,206.95 -7,984.36 7.00 -0.55 -7.00 265.00 811812016 5.09:47PM Page 2 COMPASS 5000.1 Build 74 ConocoPhillips RAN ConocoPhillips Planning Report BAKER HUGHES Database: EDM Alaska NSK Sandbox Company: ConocoPhillips (Alaska) Inc. -Kup2 Project: Kuparuk River Unit Site: Kuparuk 3M Pad Well: 3M-24 Wellbore: 3M-24AL2 Design: 3M-24AL2_wp02 Planned Survey Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Well 3M-24 Mean Sea Level 3M-24 @ 68.00usft (3M-24) True Minimum Curvature Measured TVD Below Vertical Dogleg Toolface Map Map Depth Inclination Azimuth System +N/-S +E/-W Section Rate Azimuth Northing Easting (usft) (°) (°) (usft) (usft) (usft) (usft) (°/100ft) (°) (usft) (usft) 12,850.00 90.43 94.39 6,093.83 -3,185.33 -9,126.02 -9,126.02 0.00 0.00 6,013,321.32 497,133.65 TIP/KOP 12,900.00 93.46 92.64 6,092.13 -3.188.40 -9,076.15 -9,076.15 7.00 -30.00 6,013,318.30 497,183.51 12,950.00 96.49 90.88 6,087.79 -3,189.93 -9.026.37 -9,026.37 7.00 -30.06 6,013,316.81 497,233.29 Start 7 dls 13,000.00 95.28 87.57 6,082.67 -3,189.25 -8,976.65 -8,976.65 7.00 -110.00 6,013,317.53 497,283.01 13,050.00 94.06 84.28 6,078.60 -3,185.71 -8,926.95 -8,926.95 7.00 -110.34 6,013,321.11 497,332.70 3 13,100.00 92.57 81.11 6,075.71 -3,179.37 -8,877.45 -8,877.45 7.00 -115.00 6,013,327.50 497,382.19 13,150.00 91.08 77.94 6,074.11 -3,170.28 -8,828.31 -8,828.31 7.00 -115.18 6,013,336.62 497,431.32 4 13,200.00 90.77 81.43 6,073.31 -3,161.33 -8,779.13 -8,779.13 7.00 95.00 6,013,345.61 497,480.48 13,250.00 90.46 84.91 6,072.77 -3,155.39 -8,729.50 -8,729.50 7.00 95.06 6,013,351.60 497,530.11 5 13,300.00 89.85 88.36 6,072.63 -3,152.46 -8,679.59 -8,679.59 7.00 100.00 6,013.354.57 497,580.00 13,400.00 88.64 95.26 6,073.94 -3,155.61 -8,579.71 -8,579.71 7.00 100.01 6,013,351.50 497,679.88 13,450.00 88.04 98.71 6,075.39 -3,161.68 -8,530.11 -8,530.11 7.00 99.92 6,013,345.47 497,729.48 6 13,500.00 87.74 95.22 6,077.23 -3,167.74 -8,480.52 -8,480.52 7.00 -95.00 6,013,339.46 497,779.07 13,600.00 87.16 88.23 6,081.69 -3,170.75 -8,380.73 -8,380.73 7.00 -94.87 6,013,336.54 497,878.85 7 13,700.00 86.58 95.22 6,087.15 -3,173.75 -8,280.99 -8,280.99 7.00 95.00 6,013,333.62 497,978.59 13,800.00 86.04 102.21 6,093.60 -3,188.86 -8,182.41 -8,182.41 7.00 94.62 6,013,318.59 498,077.17 8 13,900.00 85.46 95.22 6,101.02 -3,203.96 -8,083.90 -8,083.90 7.00 -95.00 6,013,303.57 498,175.68 14,000.00 84.95 88.21 6,109.39 -3,206.95 -7,984.36 -7,984.36 7.00 -94.48 6,013,300.67 498,275.22 Planned TD at 14000.00 811812016 5:09.47PM Page 3 COMPASS 5000.1 Build 74 f ConocoPhillips WE.. ConocoPhillips Planning Report BMER HUGHES Database: EDM Alaska NSK Sandbox Local Co-ordinate Reference: Well 3M-24 Company: ConocoPhillips (Alaska) Inc. -Kup2 TVD Reference: Mean Sea Level Project: Kuparuk River Unit MD Reference: 3M-24 @ 68.00usft (3M-24) Site: Kuparuk 3M Pad North Reference: True Well: 3M-24 Survey Calculation Method: Minimum Curvature Wellbore: 3M-24AL2 Design: 3M-24AL2_wp02 Targets Target Name hit/miss target Dip Angle Dip Dir. TVD +N1-S +Ei-W Northing Easting Shape (°) (°) (usft) (usft) (usft) (usft) (usft) Latitude Longitude 3M-24AL2_T05 0.00 0.00 6,108.00 -4,409.091,132,136.78 6,013,056.00 1,638,283.00 70° 12' 39.930 N 140' 47' 25.184 W plan misses target center by 1140121.77usft at 14000.00usft MD (6109.39 TVD,-3206.95 N,-7984.36 E) Point 3M-24A_Fault2 0.00 0.00 6,100.00 -4,303.891,130,731.73 6,013,160.00 1,636,878.00 70° 12' 43.019 N 140° 48' 4.993 W plan misses target center by 1138716.61 usft at 14000.00usft MD (6109.39 TVD,-3206.95 N,-7984.36 E) Polygon Point 1 6,100.00 0.00 0.00 6,013,160.00 1,636,878.00 Point 6,100.00 1.00 1.00 6,013,161.00 1,636,879.00 3M-24AL2_T02 0.00 0.00 6,077.00 -4,356.341,131,255.74 6,013,108.00 1,637,402.00 70° 12' 41.739 N 140° 47' 50.203 W plan misses target center by 1139240.67usft at 14000.00usft MD (6109.39 TVD,-3206.95 N,-7984.36 E) Point 3M-24A_Fault3 0.00 0.00 6,123.00 -4,436.091,132,135.76 6,013,029.00 1,638,282.00 70° 12' 39.669 N 140° 47' 25.331 W plan misses target center by 1140120.78usft at 14000.00usft MD (6109.39 TVD,-3206.95 N,-7984.36 E) Polygon Point 1 6,123.00 0.00 0.00 6,013,029.00 1,638,282.00 Point 6,123.00 1.00 1.00 6,013,030.00 1,638,283.00 3M-24AL2_T03 0.00 0.00 6,073.00 -4,367.531,131,485.75 6,013,097.00 1,637.632.00 70° 12' 41.292 N 140' 47' 43.660 W plan misses target center by 1139470.70usft at 14000.00usft MD (6109.39 TVD,-3206.95 N,-7984.36 E) Point 3M-24 CTD Polygon We 0.00 0.00 0.00 -2,814.01 1,128,663.77 6,014,648.00 1,634,809.00 70° 13' 0.526 N 140° 48' S7.801 W plan misses target center by 1136664.61 usft at 14000.00usft MD (6109.39 TVD,-3206.95 N. -7984.36 E) Polygon Point 1 0.00 0.00 0.00 6.014,648.00 1,634,809.00 Point 0.00 -1,019.94 2,335.43 6,013,630.12 1,637,145.05 Point 0.00 -1,754.90 2,181.84 6,012,895.11 1,636,992.09 Point4 0.00 -657.92-183.54 6,013,989.99 1,634,626.03 Point 0.00 0.00 0.00 6,014,648.00 1,634,809.00 3M-24AL2_T04 0.00 0.00 6,087.00 -4,391.821,131,823.76 6,013,073.00 1,637,970.00 70° 12' 40.558 N 140° 47' 34.079 W plan misses target center by 1139808.74usft at 14000.00usft MD (6109.39 TVD,-3206.95 N,-7984.36 E) Point 3M-24 CTD Polygon Ea: 0.00 0.00 0.00 -3,819.91 1,130,808.14 6,013.644.00 1,636,954.00 70° 12' 47.606 N 1400 48' 0.701 W plan misses target center by 1138809.05usft at 14000.00usft MD (6109.39 TVD,-3206.95 N,-7984.36 E) Polygon Point 1 0.00 0.00 0.00 6,013,644.00 1,636,954.00 Point 0.00 -573.36 2,916.84 6,013,073.15 1,639,871.03 Point 0.00 -1,121.35 2,839.40 6,012,525.15 1,639,794.06 Point 0.00 -771.12 53.40 6,012,873.00 1,637,008.04 Point 0.00 -470.74-386.41 6,013,172.98 1,636,568.02 Point 0.00 0.00 0.00 6,013,644.00 1,636,954.00 3M-24A_Fault4 0.00 0.00 6,154.00 -4,505.471,132,585.74 6,012,960.00 1.638,732.00 70' 12' 38.332 N 140' 47' 12.738 W plan misses target center by 1140570.84usft at 14000.00usft MD (6109.39 TVD,-3206.95 N,-7984.36 E) Polygon Point 1 6,154.00 0.00 0.00 6,012,960.00 1,638.732.00 Point 6,154.00 1.00 1.00 6,012,961.00 1,638,733.00 3M-24A_Faultl 0.00 0.00 6,109.00 -4.082.951,130,826.92 6,013,381.00 1,636,973.00 70° 12' 45.025 N 140° 48' 1.305 W plan misses target center by 1138811.62usft at 14000.00usft MD (6109.39 TVD,-3206.95 N,-7984.36 E) Polygon Point 6,109.00 0.00 0.00 6,013,381.00 1,636.973.00 Point2 6,109.00 1.00 1.00 6,013,382.00 1,636,974.00 3M-24AL2_T01 0.00 0.00 6,088.00 -4.339.241,131,137.74 6,013,125.00 1,637,284.00 70° 12' 42.079 N 1400 47' S3.511 W plan misses target center by 1139122.66usft at 14000.00usft MD (6109.39 TVD,-3206.95 N,-7984.36 E) Point 811812016 5 09.47PM Page 4 COMPASS 5000.1 Build 74 ConocoPhillips WE.. ConocoPhillips Planning Report BAKER HUGHES Database: EDM Alaska NSK Sandbox Company: ConocoPhillips (Alaska) Inc. -Kup2 Project: Kuparuk River Unit Site: Kuparuk 3M Pad Well: 3M-24 Wellbore: 3M-24AL2 Design: 3 M-24A L2_w p 02 Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Well 3M-24 Mean Sea Level 3M-24 @ 68.00usft (3M-24) True Minimum Curvature 3M-24AL3_Faultl 0.00 0.00 6,070.00-3,679.091,129,853.16 6,013,784.00 1,635,999.00 70' 12' 50.378 N 140' 48' 27.461 W plan misses target center by 1137837.62usft at 14000.00usft MD (6109.39 TVD,-3206.95 N,-7984.36 E) Polygon Point 1 6.070.00 0.00 0.00 6,013,784.00 1,635,999.00 Point 6,070.00 1.00 1.00 6,013,785.00 1,636,000.00 Casing Points Measured Vertical Depth Depth (usft) (usft) Name 14,000.00 6,109.39 2 3/8" Plan Annotations Measured Vertical Depth Depth (usft) (usft) 12,850.00 6,093.83 12,950.00 6.087.79 13,050.00 6,078.60 13,150.00 6,074.11 13,250.00 6,072.77 13,450.00 6,075.39 13,600.00 6,081.69 13,800.00 6,093.60 14,000.00 6,109.39 Local Coordinates +N/-S +E/-W (usft) (usft) Comment -3,185.33 -9,126.02 TIP/KOP -3,189.93 -9,026.37 Start 7 dls -3,185.71 -8,926.95 3 -3.170.28 -8,828.31 4 -3,155.39 -8,729.50 5 -3,161.68 -8,530.11 6 -3,170.75 -8,380.73 7 -3,188.86 -8,182.41 8 -3,206.95 -7,984.36 Planned TD at 14000.00 Casing Hole Diameter Diameter (in) (in) 2.375 3 000 811812016 5:09:47PM Page 5 COMPASS 5000.1 Build 74 Baker Hughes INTEQ HE as ConocoPhillips Travelling Cylinder Report BAKER HUGHES Company: ConocoPhillips (Alaska) Inc. -Kup2 Project: Kuparuk River Unit Reference Site: Kuparuk 3M Pad Site Error: 0 00 usft Reference Well: 3M-24 Well Error. 0.00 usft Reference Wellbore 3M-24AL2 Reference Design: 3M-24AL2_wp02 Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Output errors are at Database: Offset TVD Reference: Well 3M-24 3M-24 @ 68.00usft (3M-24) 3M-24 @ 68.00usft (3M-24) True Minimum Curvature 1.00 sigma OAKEDMP2 Offset Datum leference 3M-24AL2_wp02 liter type: GLOBAL FILTER APPLIED: All wellpaths within 200'+ 100/1000 of reference lterpolation Method: MD Interval 25.00usft Error Model: ISCWSA lepth Range: 12,850.00 to 14,000.00usft Scan Method: Tray. Cylinder North results Limited by: Maximum center -center distance of 1,593.20 usft Error Surface: Elliptical Conic Survey Tool Program I Date 8/18/2016 From To (usft) (usft) Survey (Wellbore) Tool Name Description 72.64 12,142.37 3M-24 (3M-24) GCT-MS Schlumberger GCT multishot 12,142.37 12,850.00 3M-24A_wp05 (3M-24A) MWD MWD - Standard 12,850.00 14,000.00 3M-24AL2_wp02 (3M-24AL2) MWD MWD - Standard rasing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (usft) (usft) Name 14,000.00 6,177.39 2 3/8" 2-3/8 3 Summary Reference Offset Centre to No -Go Allowable Measured Measured Centre Distance Deviation Warning Site Name Depth Depth Distance (usft) from Plan Offset Well - Wellbore - Design (usft) (usft) (usft) (usft) Kuparuk 3M Pad 3M-12 - 3M-12 - 3M-12 Out of range 3M-20 - 3M-20 - 3M-20 Out of range 3M-23 - 3M-23 - 3M-23 Out of range 31VI-24 - 31VI-24 - 3M-24 12,862.23 11,925.00 420.23 16.49 412A1 Pass - Major Risk 3M-24 - 3M-24A - 3M-24A_wp05 12,874.99 12,875.00 0.38 0.37 0.06 Pass - Minor 1/10 3M-24 - 3M-24AL1 - 3M-24AL1_wp04 12,874.99 12,875.00 0.38 0.37 0.06 Pass - Minor 1/10 3M-24 - 3M-24AL3 - 3M-24AL3_wp02 12,862.23 11,925.00 420.23 14.97 413.67 Pass - Major Risk 3M-27 - 3M-27 - 3M-27 Out of range 3M-28 - 31VI-28 - 3M-28 13,950.00 10,925.00 1,537.01 461.84 1,108.78 Pass - Major Risk Offset Design Kuparuk 3M Pad - 3M-24 - 3M-24 - 3M-24 Offset Site Error: 0.00 usft Survey Program: 73-GCT-MS Rule Assigned: Major Risk Offset Well Error: 0.00 usft Reference Offset Semi Major Axis Measured Vertical Measured Vertical Reference offset Toolface + Offset Wellbore Centre Casing - Centre to No Go Allowable Warning Depth Depth Depth Depth Azimuth +N/S +E/-W Hole Size Centre Distance Deviation (usft) (usft) (usft) (usft) (usft) (usft) 1°) (usft) (usft) (") (usft) (usft) (usft) 12,862.23 6,161,65 11,925.00 5,963.79 0.41 0.00 3206. -2,816,13 -9,092.24 2-11/16 420.23 16.49 412.11 Pass - Major Risk, CC, ES, SF 12,893.57 6,160,49 11,900.00 5,946.15 0,66 0.00 32.54 -2,81120 -9,075,22 2-11/16 433.64 16,68 425.18 Pass - Major Risk 12,927.50 6,158.07 11,875,00 5,928.55 0.71 0.00 32.72 -2,806.25 -9,058.16 2-11/16 446,76 16.86 437,93 Pass - Major Risk 12,960.83 6,154.59 11,850.00 5,910.94 0.71 0.00 32.40 -2,801.31 -9,041.12 2-11/16 459,48 17.09 450,29 Pass - Major Risk 12,989.57 6,151.65 11,825.00 5,893,42 0,71 0.00 31.61 -2,796.32 -9,024.00 2-11/16 471.96 17.41 462,46 Pass - Major Risk 13,018.48 6,149.04 11,800.00 5, 876,15 0,71 0.00 30.80 -2,791.20 -9,006.66 2-11/16 484.23 17.73 474.41 Pass - Major Risk 13,04T69 6,146.76 11,775.00 5,859.28 0,71 0.00 29.95 -2,785.94 -8,988.98 2-11116 496,20 18.06 486.06 Pass - Major Risk 13,075.36 6,144,97 11,750.00 5,842,61 0.71 0,00 29.27 -2,780.60 -8,971.13 2-11/16 507.96 18.39 497.51 Pass - Major Risk 13,102.73 6,143,59 11,725.00 5,826.13 0,70 0.00 2863 -2,775.10 -8,953.16 2-11/16 519,63 18,72 508.87 Pass - Major Risk 13,129.98 6,142,60 11,700.00 5,809.91 0,70 0,00 28.00 -2,769.34 -8,935,02 2-11/16 531.24 1905. 520.16 Pass - Major Risk CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min ellipse separation 8/18/2016 2:21:11PM Page 2 COMPASS 5000.1 Build 74 W Wei f N J Q C] N Q � N 0 N J N Q w .0 Q do w 3m CE F o m J cU a N � � Q y 1 N >> ac� C. CL N C a N300N� O a 3¢ N a a� � in— J cf'7 LO O) 0 0 0 v f6 a a a Z6 O ^ C O C d N M V U N I- L7 O M 10 O O M m C/<0 c0 c0 o0 m0 ONE N Z a > N N N N N M co a 0 co CO co I — OM m . Cn m W 00 a0 e0 1 -, c u a� N 0 0 0 0 0 0 0 0 0 C V JN 0 0 0 0 0 0 0 0 0 0 uio �u'i u'i �000ui co N o m o 0 0 0 0 0 0 0 0 a2000000000 N 1 V7 O M O O M m Cl c n I- Cl LJJ co m c0.0 m6 N V >T� C O + N N N N M a0 cO O m 1— M m CD N LO o 0 A CP Cn a0 a0 c? CO I?cu m 1� CIJ W mco �cp c0 Q O - M m 1 N M O� c O m LC) Z i0m c0O c0Z O- (0 a0 a0 1� u2 (D a0 w + op N c?c?c?M c?M c?MM J C n M m O I l- m m O m w Cn COS wmc0 c0M 03O 0 M n o 0 N� C' ) m C O m a 0 f .0 m O 0 0 0 0 0 0 0 0 ~'t0 O O (0 c0 c0 c0 cD (0 Z CD N maO c0 V � a—M�� Q M a 0 N Cn m 1� N N N O CO .O N o0 mm a01� a0mO0o0 UM m c0 o0 c0 Irt0'd' c0 C O O O O m O O c0 V O o0 1— c0 'O' p m m m m m co o 0 o 0 co 0 + p o 0 0 0 0 0 0 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 to � � O O o a0 m O N r 10 co O N N C2] 2 c 2 MM__ C CD � O N M c0 c0 f a0 m Zo (uygsn 06) uldaQ jeoivan anal KUP PROD 3M-24 ConocoPhillips I IWell Alaska, inC. 111W - Attributes Max Angle & MD JTD Wellbore API/UWI Field Name Wellbore Status 500292243200 KUPARUK RIVER UNIT PROD nc1 (°) MD (ftKB) Act 70.03 9,189.96 Btm (ftKB) 12,489.0 Comment H2S (pp.) I Data SSSV: NIPPLE 200 12/11/2015 Annotation End Date Last WO: 1/3/2008 KB-Grd (ft) Rig Release Data 41.00 1/26/1994 3M-24, 7/27/20165: 14:34 PM Venical schematic acWat Annotation Depth (ftKB) End Date Last Tag: SLM 12,220.0 7/25/2016 Annotation Last Mad By End Date Rev Reason: H2S & TAG pproven 7I25/2016 HANGER 302 CONDUCTOR; 42.0-121.0 NIPPLE: 507.4 GAS LIFT; 3,502.1 SURFACE: 41 0-5,3104-Perforations GAS LIFT; 6,635.2 GAS LIFT; 8,9503 GAS LIFT; 10,983.7 GAS LIFT; 11,952.8 SEAL ASSY; 12,007.3 PBR; 12,008.5 PACKER: 120232 NIPPLE: 12,037.5 SOS; 12,047.1 APERF; 12,132.0-12.152.0- APERF; 12,162.0-12.198.0- I PER F: 12,208.0-12,230a - APERF; 12,230.0-12,244.0- PRODUCTION', 29.5-12 470 2 Casing Strings Casing Description OD CONDUCTOR (in) i6 ID (in) 15.062 Tap (ftKB) 42.0 Set Depth (ftKB) Sel 121.0 Depth (TVD)... 121.0 WNLen (I... 62.50 Grade H-40 Top Thread WELDED Casing Description OD SURFACE (in) 9 5/8 ID (in) 8.921 Top (ftKB) 41.0 Set Depth (ftKB) Set 5,310.4 Depth (TVD)... 3,285.E Wt/Len (I... 47.00 Grade L-80 Top Thread BTC Casing Description OD PRODUCTION (in) 7 ID (in) 6.276 Top (ftKB) 29.5 Set Depth (ftKB) Set 12,470.2 Depth (TVD)... 6,347.4 W i-l" (I... 26.00 Gorda L-80 Top Thread BTC-MOD Tubing Strings Tubing Description Sting Ma... ID (in) Top (ftKB) Set Depth (ft.. set Depth 111) (... Wt (111) Grade Top Connection TUBING 3112 2.992 30.3 12,009.1 6,023.1 9.30 L-80 EUEBniABMOD Completion Details Top (ftKB) To ND ftKB p ( ) ( To Incl ) P () Item Des Core Nominal ID 30.3 30.2 0.34 HANGER ,ICEVOY GEN IV HANGER 3.500 507.4 507.3 1.47 NIPPLE CAMCO IDS LANDING NIPPLE SET 1/2/2008 2.875 12,007.3 6,021.8 45.16 SEAL ASSY BAKER LOCATOR OD 4.18/SEAL ASSEMBLY - INSERTED IN ORIGINAL PBR- SET 1/2/2008 WORKOVER 3.000 Tubing Description String Ma... ID (in) Top (ftKB) Set Depth (ft.. Set Depth (TVD) (... WI(11,M) Grade Top Connection TUBING Original 5 4.000 12,008.5 12,048.0 6,050.5 Completion Details Top (ftKB) Top (TVD) (ftKB) Top Incl (°) Item Des Co. Nominal ID (i n) 12,008.5 6,022.7 45.16 PBR BAKER PER W/ IU STROKE 4.000 12,023.2 6,033.0 45.11 PACKER BAKER FHL RETRIEVABLE PACKER 3.000 12,037.5 6,043.1 45.07 NIPPLE CAMCO D NIPPLE NO GO 2.750 12.047.1 6,049.9 45.05 SOS BAKER SHEAR OUT SUB 3.500 & Slots Top (ftKB) Bt. (ftKB) Top (TVD) Btm (ftKB) (TVD) (ftKB) Zone Date Shot Dens (shotsR t) Type Co. 12,132.0 12,152.0 6,109.8 6,124.0 C-4,3M-24 8/30/2001 6.0 APERF Enerjet/Powerjet, ph, 0 deg +/- 90 orient 12,162.0 12,198.0 6,131.0 6,156.4 A-3,A-2, 24 3M- 8/30/2001 6.0 APERF Enerjet/Powerjet, ph, Odeg +1- 90 odent 12,208.0 12,230.0 6,163.4 6,178.9 A-1, 3M-24 6/30/1994 4.0 IPERF 180 Titan deg. phasing; 2 1/2" 12,230.0 1 12,244.0 6,178.9 6,188.8 I A-1,3M-24 8/28/2001 6.0 APERF Enerjet/Powerjet, ph, 0 deg +/- 90 orient Mandrel Inserts st au N Top (ftKB) Top (TVD) (ftKB) Make Model 00 (in) Sam Valve Type Latch Type Port Size (in) TRO Run (psi) Run Data Com 1 3,502.1 2,592.7 CAMCO KBMG 1 GAS LIFT GLV BK-5 0.156 1,307.0 1/5/2008 2 6,635.2 3,790.8 CAMCO KBMG 1 GAS LIFT GLV BK-5 0.188 1,343.0 1/5/2008 3 8,950.3 4,670.8 CAMCO KBMG 1 GAS LIFT OV BK-5 0.250 0.0 1/5/2008 4 10,983.7 5,422.6 CAMCO KBMG 1 GAS LIFT DMY BK-5 0.000 0.0 1/2/2008 5 11,952.8 5,983.4 CAMCO KBMG 1 GAS LIFT DMY BK-5 0.000 0.0 1/2/2008 Notes: General & Safety End Data Annotation 7/28/2010 NOTE: View Schematic w/ Alaska Schematic9.0 cl m E d L U 0 F- U a 0 O O. O a` v N 2 Cl) b z � o �n c_ m E ID n N 0 t N Nr cli M p' V O ClO 1) M - O_ CNI O O N v co — co OI C H .a ro` D W ^ � N C Z C N O C. �� Ib (h O N O O N VN N p CL a 0 O c 'O 0) c C E a U) at of (V of Ol C 'O a E m U N O N U O E� U (V m `- O � Ol E ? N Cl) CL N O_ �J Co 1=i Ul N N (0 ro m O U Eco a UZ (V v O dl C7 0 a o� v� yNVc t o" If Now x[ 1 it 11 a"m J I I 11 n�v I � II ttl II a II \t II w Nacv tl II tt It p.o 30� t t II it =lV= II II 11 \1 11 J H (EiJm I I \\ 1j If 1 11 g 11 d ih II O o- m o @ m N I I V N _J M a N I t. it O 'O O o. a I f 04 N 04 a N V V c0 04 N N N M I( P(O L O (A N N N It G a� aa� m U� Q� it Oo w If I� n� It Nv~ � 11 �Oc MfJ J TRANSMITTAL LETTER CHECKLIST WELL NAME: K2tx , .31fl- 91q.1, 2 PTD: � -10 2 /Development _ Service _ Exploratory Stratigraphic Test _ Non -Conventional FIELD: ky&f POOL: i91,,��ZV4V v�yl Check Box for Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER XLATERAL MULTI The permit is for a new wellbore segment of existing well Permit No. v0 0`' — , API No. 50-- 9, Z J 3 g �- . (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 KUPARUK RIVER, KUPARUK RIV OIL - 490100 PTD#:2161020 Company CONOCO_PHILLIPSALASKAINC InitialClass/Type Well Name: KUPARUK RIV UNIT 3M-24AL2 Program _D_EV Well bore seg d❑ DEV/PEN_D- _GeoArea 890 Unit 11160 _ On/Off Shore On -__ Annular Disposal ❑ Administration 17 Nonconven. gas conforms to AS31.05.0300.1.A),0.2.A-D) NA 1 Permit fee attached NA 2 Lease number appropriate Yes ADL0025523, Surf Loc & TD; ADL0025524, Top Prod Interval. 3 Unique well name and number Yes KRU 3M-24AL2 4 Well located in a defined pool Yes KUPARUK RIVER, KUPARUK RIV OIL - 490100, governed by Conservation Order No, 432D. 5 Well located proper distance from drilling unit boundary Yes CO 432D contains no spacing restrictions with respect to drilling unit boundaries. 6 Well located proper distance from other wells Yes CO 432D has no interwell spacing restrictions. I7 Sufficient acreage available in drilling unit Yes I8 If deviated, is wellbore plat included Yes 9 Operator only affected party Yes Wellbore will be more than 500' from an external property line where ownership or landownership changes. 10 Operator has appropriate bond in force Yes Appr Date 11 Permit can be issued without conservation order Yes 12 Permit can be issued without administrative approval Yes PKB 8/30/2016 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 I16 Pre -produced injector: duration of pre -production less than 3 months (For service well only) NA 18 Conductor string provided NA Conductor set in KRU 3M-24 Engineering �19 Surface casing protects all known USDWs NA Surface casing set in KRU 3M-24 I20 CMT vol adequate to circulate on conductor & surf csg NA Surface casing set and fully cemented 121 CMT vol adequate to tie-in long string to surf csg NA 22 CMT will cover all known productive horizons No Productive interval will be completed with uncemented slotted liner 23 Casing designs adequate for C, T, B & permafrost Yes 24 Adequate tankage or reserve pit Yes Rig has steel tanks; all waste to approved disposal wells 25 If a re -drill, has a 10-403 for abandonment been approved NA / 26 Adequate wellbore separation proposed Yes Anti -collision analysis complete; no major risk failures ✓ 127 If diverter required, does it meet regulations NA Appr Date 28 Drilling fluid program schematic & equip list adequate Yes Max formation pressure is 4305 psig(13.4 ppg EMW); will drill w/ 8.6 ppg EMW and maintain overbal w/ MPD VTL 9/6/2016 129 BOPEs, do they meet regulation Yes 30 BOPE press rating appropriate; test to (put psig in comments) Yes MPSP is 3692 psig; will test BOPs to 4200 psig 31 Choke manifold complies w/API RP-53 (May 84) Yes 32 Work will occur without operation shutdown Yes 133 Is presence of H2S gas probable Yes H2S measures required 34 Mechanical condition of wells within AOR verified (For service well only) NA 35 Permit can be issued w/o hydrogen sulfide measures No Wells on 3M-Pad are H2S-bearing. 112S measures required. Geology 36 Data presented on potential overpressure zones Yes Max. potential reservoir pressure is 13.4 ppg EMW; will be drilled using 8.6 ppg mud and MPD technique. Appr Date 37 Seismic analysis of shallow gas zones NA PKB 8/30/2016 38 Seabed condition survey (if off_ -shore) NA 39 Contact name/phone for weeklyprogressreports [exploratory only) NA Onshore development lateral to be drilled. Geologic Engineering Public Commissioner: Date: Commissioner: Date dm��L . Date