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Home My WebLink About216-103ConocoPhillips pilli 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 G 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 (3M-24L1, 3M-241_1-01, 3M-241_1-02, & 3M-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-241_1-01, 3M-241_1-02, & 3M-24L1-03 — Detailed Summary of Operations — Directional Plans for 3M-24L1, 3M-241_1-01, 3M-241_1-02, & 3M-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 °fALAS -KA 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: 907.279.1 433 Fax: 907.276.7542 www.aogcc.alaska.gov Re: Kuparuk River Field, Kuparuk River Oil Pool, KRU 3M-24AL3 ConocoPhillips Alaska, Inc. Permit to Drill Number: 216-103 Surface Location: 985' FNL, 1612' FEL, Sec. 25, T13N, R8E, UM Bottomhole Location: 3078' FNL, 2113' FEL, Sec. 27, 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 P. oerster Chair DATED this /W'day of September, 2016. STATE OF ALASKA A A OIL AND GAS CONSERVATION COMh� JN PERMIT TO DRILL 20 AAC 25.005 RECEIVED AUG 2 6 2016 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 ❑✓ - 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-24AL3 r 3. Address: 6. Proposed Depth: 12. Field/Pool(s): P.O. Box 100360 Anchorage, AK 99510-0360 MD: 14300' TVD: 6097' Kuparuk River Field / 4a. Location of Well (Governmental Section): 7. Property Designation (Lease Number): Surface: 985' FNL, 1612' FEL, Sec 25, T13N, R8E, UM nS'SZ ADL 25524 ofJ J t paruk River Oil Pool / Top of Productive Horizon: 8. Land Use Permit: 13, Approximate Spud Date: 3875' FNL, 395' FEL, Sec 27, T13N, R8E, UM ALK 2655 9/15/2016 Total Depth: 9. Acres in Property: 446 14. Distance to Nearest Property: 3078' FNL, 2113' FEL, Sec 27, T13N, R8E, UM 1920 4400' 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-28, 2103' 16. Deviated wells: Kickoff depth: 12270' feet - 17. Maximum Potential P ssu in psig (see 20 AAC 25.035) Maximum Hole Angle: 100 degrees Downhole: 430 ss Surface: 3692 psig 18. Casing Program: Specifications Top - Set in IMpth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling I Length MD TVR, MD TVD (including stage data) 3" 2-3/8" 4.7# L-80 ST-L 2270' 12030' 6038' 1 0' 6097' Slotted Liner 19. PRESENT WELL CONDITION SUMMARY (To be q d drill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): ct. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): 12490' 6361' N/A 12382' 6286' N/A Casing Length Size j Cement Volume MD TVD Conductor 121' 16" 452 sx ASI CMT 121' 121' Surface 5310' 9-5/8" 1100 sx ASIII & 600 sx Class G 5310' 3286' Production 12470' 250 sx Class G 12470' 6347' Perforation Depth MD (ft): Perforation Depth TVD (ft): ' - 12244' 6110' - 6189' 20. Attachments: Property Plat ❑ 'BOP Sketch ❑ Drilling Program 0 Time v. Depth Plot ❑ Shallow Hazard Analysis iverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program �✓ 20 AAC 25.050 requiremen 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is tru`e and the procedure approved herein will not Keith Herring @ 263-4321 be deviated from without prior written approval. Contact Email Keith. E. Herring(olcop.com Printed Name J. Burk Title CTD Coordinator Signature -- Phone 265-6097 Date 3 2,6 11, Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number: Q 50-10 — Q.0113) Date: I� I I� requirements. Conditions of app oval : 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: ❑ 13 d /0 fC $ f o 2 67 5 � 1� Samples req'd: Yes Now Mud log req'd: Yes ❑ Noy � S UU&Jt 9asures: Yes X No ❑ Directional ,I k r I vJ Gr � n rt v l � ! �Pt�� / �' svy req'd: Yes [�No ❑ Inclination A VA r— a tiC fa 2 f} C z�,(j/ �b pacing exception req'd: Yes ❑ Noy -only svy req'd: Yes ❑ No[i�' line ktcX v fFo i,1 7 o Post initial injection MIT req'd: Yes ❑ No ion P°I'vIi- a fhC Pcireka APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date:9— 7-14 y((rj ��d/�(o V'7L W& // 0 Submit Form and Form 10-401 (Revised 11/2015) ■ OisRrtli rsV�Il�f+rAnlonths V '\v' ��OO froth thB d8�2�Of 8pp�val (20 AAC 25.005(g)) L /'Oe S`/�6l/l Attachments in Duplicate ConocoPhillips p 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 : NABOASALASKA Kuparuk CTD Laterals 3M-24A, 3M-24AL1, 3M-24AL29 & 3M-24AL3 Application for Permit to Drill Document 2AC 1. Well Name and Classification........................................................................................................ 2 (Requirements of 20 AAC 25. 005(o and 20 AA C 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: 3M-24A, 3M-..4AL1, 3M-24AL2, & 3M-24AL3 1. Well Name and Classification (Requirements of 20 AAC 25.005(1) 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 3M-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 3M-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 31VI-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 3M-24 have injected gas, so there is a low probability of encountering free gas while drilling the 3M-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 3M-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, 31VI-�-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, 31Vl-,.4AL1, 3M-24AL2, & 3M-24AL3 Pressure at the 31VI-24 Window (12173' MD, 6139' TVD) Usin MPD Pumps On 1.5 b m Pumps Off A -sand Formation Pressure 11.2 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 3 M-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. Run 2-3/8" slotted liner with an aluminum billet from TD up to 14100' MD. 3. 3 M-24AL 1 Lateral (A2 sand - east) a. Kickoff 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 (Al sand - west) a. Kickoff 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-,_4AL1, 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-,.4AL1, 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 for3M-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 o - I - I o -- N d� a000 I ' O I , O N z z imw2 ddd�� o ' $ OW9 o I r I nn° r.. o l - <77o r J v N N OOO I' - � 9 t Slid r i I W � 0 j > � N 1 o 0 in J d m I N �t vmia�=o � Z o Lnm u_ v E m m w 41 v, f I — _ o o I d6F9 f >A 6 N am i f N o N o o � 6 0 1 o o � � N M s a - -- O lOJ �(ui/jjsn OSZ) (+)uijoN/(-)glnoS C )0--**' ConocoPhillips ConocoPhillips (Alaska) Inc. -Kup2 Kuparuk River Unit Kuparuk 3M Pad 3M-24 3M-24AL3 Plan: 3M-24AL3_wp02 Standard Planning Report 18 August, 2016 Few a I BAKER NUGHES ConocoPhillips Database: EDM Alaska NSK Sandbox Company: ConocoPhillips (Alaska) Inc. -Kup2 Project: Kuparuk River Unit Site: Kuparuk 3M Pad Well: 3M-24 Wellbore: 3M-24AL3 Design: 3M-24AL3_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 oject Kuparuk River Unit, North Slope Alaska, United States ip System: US State Plane 1927 (Exact solution) System Datum: Mean Sea Level �o Datum: NAD 1927 (NADCON CONUS) Using Well Reference Point ip Zone: Alaska Zone 04 Using geodetic scale factor RAN BAKER HUGHES Site Kuparuk 3M Pad Site Position: Northing: 6,016,202.17usft 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-24AL3 Magnetics Model Name Sample Date Declination Dip Angle Field Strength (nT) BG G M2016 11 / 1 /2016 17.92 81.01 57,550 Design 3M-24AL3_wp02 Audit Notes: Version: Phase: PLAN Tie On Depth: 12,270.00 Vertical Section: Depth From (TVD) +N/-S +E/-W Direction (usft) (usft) (usft) (I 0 00 0.00 0.00 290.00 Plan sections Measured TVD Below Depth Inclination Azimuth System +N/-S +E/-W (usft) (°) (°) (usft) (usft) (usft) 12,270.00 83.35 254.20 6,114.91 -2,884.68 -9,342.83 12,340.00 86.88 260.26 6,120.87 -2,900.08 -9,410.81 12,410.00 93.88 260.26 6,120.40 -2,911.91 -9,479.76 12,480.00 99.93 263.81 6,111.98 -2,921.55 -9,548.53 12,550.00 99.86 270.92 6,099.94 -2,924.72 -9,617.37 12,620.00 98.58 277.89 6.088.71 -2,919.41 -9,686.22 12,720.00 88.61 278.75 6.082.45 -2,904.98 -9,784.84 12,920.00 86.99 298.70 6,090.20 -2,841.16 -9,973.16 13,070.00 89.66 313.47 6,094.61 -2,753.08 -10,093.97 13,170.00 96.08 321.16 6,089.60 -2,679.77 -10,161.61 13,300.00 93.69 333.98 6,078.50 -2,570.67 -10,230.89 13,600.00 93.19 303.93 6,060.08 -2,347.42 -10.425.27 13,700.00 96.55 294.48 6,051.57 -2,298.84 -10,512.12 13,900.00 92.76 274.77 6,035.17 -2,248.86 -10,704.03 14,300.00 88.91 314.60 6,029.08 -2,085.14 -11,060.06 Dogleg Build Turn Rate Rate Rate TFO (°/100ft) (°/100ft) (°/100ft) (°) 0.00 0.00 0.00 0.00 10.00 5.04 8.67 60.00 10.00 10.00 0.00 0.00 10.00 8.64 5.07 30.00 10.00 -0.11 10.15 90.00 10.00 -1.83 9.96 100.00 10.00 -9.96 0.87 175.00 10.00 -0.81 9.97 95.00 10.00 1.78 9.84 80.00 10.00 6.41 7.69 50.00 10.00 -1.84 9.87 100.00 10.00 -0.16 -10.02 270.00 10.00 3.36 -9.45 290.00 10.00 -1.89 -9.85 260.00 10.00 -0.96 9.96 95.00 Target 811812016 5.11:56PM Page 2 COMPASS 5000.1 Build 74 y; ConocoPhillips MAP . . ConocoPhillips Planning Report BAKER 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-24AL3 Design: 3M-24AL3_wp02 Planned Survey Measured TVD Below Vertical Dogleg Toolface Map Map Depth Inclination Azimuth System +N1-S +E/-W Section Rate Azimuth Northing Easting (usft) (°) (°) (usft) (usft) (usft) (usft) (°/100ft) (°) (usft) (usft) 12,270.00 83.35 254.20 6,114.91 -2,884.68 -9,342.83 7,792.77 0.00 0.00 6,013,621.76 496,916.61 TIP/KOP 12,300.00 84.86 256.80 6,117.99 -2,892.15 -9,371.72 7,817.36 10.00 60.00 6,013,614.27 496,887.73 12,340.00 86.88 260.26 6,120.87 -2,900.08 -9.410.81 7,851.38 10.00 59.73 6,013,606.31 496,848.65 Start 10 dIs 12,400.00 92.88 260.26 6,120.99 -2,910.22 -9,469.92 7,903.46 10.00 0.00 6,013.596.12 496,789.56 12,410.00 93.88 260.26 6,120.40 -2,911.91 -9,479.76 7,912.12 10.00 0.00 6,013,594.42 496,779.72 3 12,480.00 99.93 r 263.81 6,111.98 -2,921.55 -9,548.53 7,973.46 10.00 30.00 6,013,584.73 496,710.96 4 12,500.00 99.93 265.84 6,108.53 -2,923.32 -9,568.15 7,991.29 10.00 90.00 6,013,582.94 496,691.34 12,550.00 99.86 270.92 6,099.94 -2,924.72 -9,617.37 8,037.06 10.00 90.35 6,013,581.50 496,642.13 5 12,600.00 98.96 275.90 6,091.76 -2,921.78 -9,666.59 8,084.32 10.00 100.00 6,013,584.39 496.592.91 12,620.00 98.58 277.89 6,088.71 -2,919.41 -9,686.22 8,103.57 10.00 100.82 6,013,586.75 496,573.29 6 12,700.00 90.61 278.58 6,082.31 -2,908.00 -9,765.07 8.181.57 10.00 175.00 6,013,598.10 496,494.43 12,720.00 88.61 278.75 6.082.45 -2,904.98 -9,784.84 8,201.18 10.00 175.06 6,013,601.09 496,474.66 7 12,800.00 87.93 286.73 6,084.87 -2,887.36 -9,862.77 8,280.44 10.00 95.00 6,013,618.65 496,396.72 12,900.00 87.14 296.71 6,089.18 -2,850.44 -9,955.47 8,380.18 10.00 94.76 6,013,655.48 496,304.00 12,920.00 86.99 298.70 6,090.20 -2,841.16 -9,973.16 8,399.97 10.00 94.33 6,013,664.75 496,286.31 8 13,000.00 88.40 306.58 6,093.43 -2,798.07 -10,040.41 8,477.90 10.00 80.00 6.013,707.78 496,219.03 13,070.00 89.66 313.47 6,094.61 -2,753.08 -10,093.97 8,543.62 10.00 79.68 6,013,752.72 496,165.44 9 13,100.00 91.59 315.77 6,094.28 -2,732.02 -10,115.32 8,570.89 10.00 50.00 6,013,773.76 496,144.07 13,170.00 96.08 321.16 6,089.60 -2.679.77 -10,161.61 8,632.25 10.00 50.03 6,013,825.96 496,097.74 10 13,200.00 95.55 324.13 6,086.56 -2.656.05 -10,179.72 8,657.38 10.00 100.00 6,013,849.67 496,079.62 13,300.00 93.69 333.98 6,078.50 -2,570.67 -10,230.89 8,734.67 10.00 100.30 6,013,935.00 496,028.37 11 13,400.00 93.63 323.96 6.072.10 -2,485.26 -10,282.26 8,812.16 10.00 -90.00 6,014,020.36 495,976.93 13,500.00 93.46 313.95 6,065.90 -2,410.08 -10,347.72 8,899.38 10.00 -90.64 6,014,095.47 495,911.42 13,600.00 93.19 303.93 6.060.08 -2,347.42 -10,425.27 8,993.69 10.00 -91.26 6,014,158.06 495,833.83 12 13,700.00 96.55 294.48 6,051.57 -2,298.84 -10,512.12 9,091.91 10.00 -70.00 6,014.206.56 495,746.95 13 13,800.00 94.73 284.60 6,041.72 -2,265.62 -10,605.79 9,191.29 10.00 -100.00 6,014,239.70 495,653.26 13,900.00 92.76 274.77 6,035.17 -2,248.86 -10,704.03 9,289.34 10.00 -100.97 6.014,256.38 495,555.02 14 14,000.00 91.86 284.74 6,031.13 -2,231.95 -10,802.37 9,387.54 10.00 95.00 6,014,273.21 495,456.66 14,100.00 90.89 294.70 6,028.73 -2,198.26 -10,896.36 9,487.38 10.00 95.40 6,014,306.81 495,362.66 14,200.00 89.90 304.65 6,028.04 -2,148.82 -10,983.14 9,585.83 10.00 95.64 6,014,356.17 495,275.85 14,300.00 88.91 314.60 6,029.08 -2,085.14 -11,060.06 9,679.90 10.00 95.71 6,014,419.79 495,198.88 Planned TD at 14300.00 8/18/2016 5:11:56PM Page 3 COMPASS 5000.1 Build 74 ✓ ConocoPhillips FfA.. ConocoPhillips Planning Report BAKER 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.O0usft (3M-24) Site: Kuparuk 3M Pad North Reference: True Well: 3M-24 Survey Calculation Method: Minimum Curvature Wellbore: 3M-24AL3 Design: 3M-24AL3_wp02 Targets Target Name hit/miss target Dip Angle Dip Dir. TVD +N/-S +E/-W Northing Easting Shape V) (1) (usft) (usft) (usft) (usft) (usft) Latitude Longitude 3M-24AL3_T02 0.00 0.00 6.093.00 -3,911.251,130,014.99 6,013,552.00 1,636,161.00 700 12' 47.886 N 140° 48' 23.830 W plan misses target center by 1139358.28usft at 12270.00usft MD (6114.91 TVD,-2884.68 N,-9342.83 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 1140075.44usft at 12270.00usft MD (6114.91 TVD,-2884.68 N,-9342.83 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-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 1141479.64usft at 12270.00usft MD (6114.91 TVD,-2884.68 N,-9342.83 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-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' 57.801 W plan misses target center by 1138023.03usft at 12270.00usft MD (6114.91 TVD,-2884.68 N,-9342.83 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 Point 0.00 -657.92-183.54 6,013,989.99 1,634,626.03 Points 0.00 0.00 0.00 6,014,648.00 1,634,809.00 3M-24 CTD Polygon Ea: 0.00 0.00 0.00 -3,819.91 1,130,808.14 6,013,644.00 1,636,954.00 700 12' 47.606 N 140° 48' 0.701 W plan misses target center by 1140167.75usft at 12270.00usft MD (6114.91 TVD,-2884.68 N,-9342.83 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 Points 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-24AL3 T05 0.00 0.00 6,030.00 -3,208.331,128,998.47 6,014,254.00 1,635,144.00 70' 12' S6.206 N 140' 48' 49.917 W plan misses target center by 1138341.35usft at 12270.00usft MD (6114.91 TVD,-2884.68 N,-9342.83 E) Point 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 1141929.72usft at 12270.O0usft MD (6114.91 TVD,-2884.68 N,-9342.83 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-24AL3_T04 0.00 0.00 6,054.00 -3,517.941,129,688.28 6,013,945.00 1,635,834.00 70' 12' 52.186 N 140° 48' 31.487 W plan misses target center by 1139031.29usft at 12270.00usft MD (6114.91 TVD,-2884.68 N,-9342.83 E) Point 3M-24AL3_T03 0.00 0.00 6,070.00 -3,667.101,129,856.17 6,013,796.00 1,636,002.00 70' 12' 50.490 N 140' 48' 27.322 W plan misses target center by 1139199.27usft at 12270.00usft MD (6114.91 TVD,-2884.68 N,-9342.83 E) Point 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 1140170.38usft at 12270.00usft MD (6114.91 TVD,-2884.68 N,-9342.83 E) Polygon Point 1 6,109.00 0.00 0.00 6,013,381.00 1,636,973.00 Point 6,109.00 1.00 1.00 6,013,382.00 1,636,974.00 3M-24AL3_T01 0.00 0.00 6,081.00 -4,105.581,130,376.86 6,013,358.00 1,636,523.00 70° 12' 45.467 N 140° 48' 14.302 W plan misses target center by 1139720.34usft at 12270.00usft MD (6114.91 TVD,-2884.68 N,-9342.83 E) Point 811812016 5:11.56PM Page 4 COMPASS 5000.1 Build 74 ConocoPhillips MA hl v 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 Wel I bore: 3M-24AL3 Design: 3M-24AL3_wp02 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 1139196.27usft at 12270.00usft MD (6114.91 TVD,-2884.68 N,-9342.83 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) 14,300,00 6,029.08 2 3/8" Plan Annotations Measured Vertical Depth Depth (usft) (usft) 12,270.00 6,114.91 12,340.00 6,120.87 12,410.00 6,120.40 12,480.00 6,111.98 12,550.00 6,099.94 12.620.00 6.088.71 12,720.00 6,082.45 12,920.00 6,090.20 13,070.00 6,094.61 13,170.00 6,089.60 13,300.00 6,078.50 13,600.00 6,060.08 13,700.00 6,051.57 13,900.00 6,035.17 14,300.00 6,029.08 Casing Hole Diameter Diameter Name (in) (in) 2.375 3.000 Local Coordinates +N1-S +E/-W (usft) (usft) Comment -2,884.68 -9,342.83 TIP/KOP -2,900.08 -9,410.81 Start 10 dls -2,911.91 -9,479.76 3 -2,921.55 -9,548.53 4 -2,924.72 -9,617.37 5 -2,919.41 -9,686.22 6 -2,904.98 -9,784.84 7 -2,841.16 -9,973.16 8 -2,753.08 -10,093.97 9 -2,679.77 -10.161.61 10 -2,570.67 -10.230.89 11 -2,347.42 -10,425.27 12 -2,298.84 -10,512.12 13 -2,248.86 -10,704.03 14 -2,085.14 -11,060.06 Planned TD at 14300.00 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 12.270.00 3M-24A_wp05(3M-24A) MWD MWD- Standard 12,270.00 14,300.00 3M-24AL3_wp02 (3M-24AL3) MWD MWD - Standard 811812016 5:11.56PM Page 5 COMPASS 5000.1 Build 74 Baker Hughes INTEQ WE 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-24AL3 Reference Design: 3M-24AL3_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 teference 3M-24AL3_wp02 liter type: GLOBAL FILTER APPLIED: All wellpaths within 200'+ 100/1000 of reference iterpolation Method: MD Interval 25.00usft Error Model: ISCWSA lepth Range: 12,270.00 to 14,300.00usft Scan Method: Tray. Cylinder North results Limited by: Maximum center -center distance of 1,623.20 usft Error Surface: Elliptical Conic 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 12,270.00 3M-24A_wp05 (3M-24A) MWD MWD - Standard 12,270.00 14,300.00 3M-24AL3_wp02 (3M-24AL3) MWD MWD - Standard Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (usft) (usft) Name (r') (") 14,300.00 6,097.08 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-20 - 3M-20 - 3M-20 Out of range 3M-23 - 3M-23 - 3M-23 Out of range 3M-24 - 3M-24 - 3M-24 12,280.92 12,300.00 44.28 9.80 34.53 Pass - Major Risk 3M-24 - 3M-24A - 3M-24A_wp05 12,275.00 12,275.00 0A 0 0.31 -0.14 FAIL - Minor 1/10 3M-24 - 3M-24AL1 - 3M-24AL1_wp04 12,275.00 12,275.00 0.10 0.36 -0.19 FAIL - Major Risk 3M-24 - 3M-24AL2 - 3M-24AL2_wp02 12,275.00 12,275.00 0.10 0.36 -0.19 FAIL - Major Risk 3M-25 - 3M-25 - 3M-25 Out of range 3M-27 - 3M-27 - 3M-27 Out of range 3M-28 - 3M-28 - 3M-28 Out of range 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) (usn) (usft) (usft) M (usft) (usft) C) (usft) (usft) (usft) 12,280.92 6,184.12 12,300.00 6,228.15 0.13 1,19 7525 -2,886,42 -9,348,72 2-11/16 44,28 9,80 34.53 Pass- Major Risk, CC, ES, SF 12,300.00 6,185.99 12,325.00 6,245.69 0.14 1.38 76.S8 -2,890.88 -9,365.98 2-11/16 59.99 10.45 49.67 Pass - Major Risk 12,317.65 6,187,44 12,350.03 6,263.23 0,15 1.57 78.73 -2,895.31 -9,383,27 2-11/16 76.01 11.09 65.16 Pass - Major Risk 12,335.22 6,188,60 12,375.00 6,280.73 0.15 1.76 80.74 -2,899,72 -9,400.53 2-11/16 92.30 11.79 80.92 Pass - Major Risk 12,350.00 6,189.33 12400.00 6,29825 0.15 1.95 81.74 -2,904,13 -9.417.81 2-11/16 108.99 12,42 97,09 Pass - Major Risk 12,366.42 6,189,70 12425.00 6,315.77 0.16 2.14 82.19 -2,908.54 -9,435.09 2-11/16 126.15 13.10 113,71 Pass - Major Risk 12,380,75 6,189,64 12.450.00 6,333.29 0,17 2.33 82,52 -2,912,95 -9,452.37 2-11/16 143.78 13.76 130.87 Pass - Major Risk 12,394,39 6,189.25 12,475.00 6,350.81 0,17 2.52 82,77 -2,917,36 -9469.65 2-11/16 161.85 14.38 148.48 Pass - Major Risk 12,402.25 6,188.88 12,490,00 6,361.32 0,18 2.64 82.90 -2,920,01 -9480.02 2-11/16 172.88 14.75 159.26 Pass - Major Risk CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min ellipse separation 8/18/2016 2:25:56PM Page 2 COMPASS 5000.1 Build 74 v R 2 c IL tA CL �0 V 0 C U m a o - - O CO to [T 0 0 tpi v 5 y � o to O N c Y r c a m m V N r M �-- • V O Lq o� t 0 N 0 0 0 p M O UJ N Nth 1 M p M N M O� 1 CDO mV M M O p a 0 1 M az � � I-W 01O=1 NM !J (O �OONO I� f� l� l� tO oD aO cO cO a0 oO tO p� 0) O co G] Cl O p O O O O O O p O O O p p N J N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O Cm:;O t n u] C6 O a' a'O O K i N LT t0 M6]Oa�-O Cl) N 04 N N N 00 O p O O O O O O p 0 0 0 0 0 0 0 N O O O p O O O O O O O O O O 0 O O O O O p O O O O O p O O M t0M I-N rO P- O�CNMO Q) oo IC!Wr- to M Nlc� O O cc? Cl!O O Ly J N 0 0 t' O- t 0' M cm')O t n N V 0 C O } 1� ID a0 a m Ot0MN OCO M �{ V� ID ID 1� O '� � rn rn rn rn rn rn rn rn o 0 0 0 0 0 J w Lo N Q O tO p Qf to 1` V mO�DCC? CC? f'-• to ZvO� v 6i V.-th Oi O l-co�tti } a0 O N N O O ap WQ �- V• Ql pj O O O m eD I� t0 to M N N O CO N N N N N N N N N N N N N N CV J J (n 0-Iq OaC V CJ p 00 a0 ti W Co (,/)ON V'OO�I��NCO tO u]O tnp � 0 0 .- O o p N O m 0 7 0 F A O -� E � a 0 Q 1 m o � O t o M N m c- O O O O O O O O O O O ~ O tD t0 tD t0 tp t0 t0 tp t0 CO O (O t0 tD Z CO •N O t0 O N O iA O t0 a0 Mo01.,0 r0 O tp V OO C6 OIL aO C6 mc) r-.4- t` W N N N N N N N N m M M N N M Cl) U to tt000 MtD OoZ O;OQ�Oan(pr- CCiCRCROtptntOpOO( .Ut ISO �O m to O to M C) O OOO po comwO�O�O)OO L+ O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O O O p O O O O O O O O O O O O O O O 1� V aO anN NN I��OOOOO O 1.- O M NNN NNNN N_M_M M_C2 O cN! �2 t2 +o ) W G (ui/gsn S9) g1daQ jeopioA anj L KUP PROD 3M-24 COnocoPhillips Alaska, Inc. " •• Well Attributes Max Angle & MD JTD WellboreAPIIUWI FieltlName Wellbore Status 500292243200 KUPARUK RIVER UNIT PROD MD(ftKB) ActBtm(ftKB) 70.03 9,189.96 12,489.0 Comment 1-12S (pp.) Date SSSV: NIPPLE 200 12/11/201$ Annotation End Date Last WO: 1008 KB-Grd (ft) Rig Release Date 41.00 1/26/1994 3M-24,7/27/20165:14:34 PM Ver6wlschemaGc actual Annotation Depth (RKB) End Date Last Tag: SLM 12,220.0 7/25/2016 Annotation Last Mod By End Date Rev Reason: H2S 8 TAG ppmyen 7/25/2016 HANGER; 30. CONDUCTOR; 42.0-121.0 NIPPLE; 507A GAS LIFT: 3,502.1 SURFACE; 41.0-5,3104- GAS UFT; 6,6352 GAS LIFT: 6.950.3 cns LIFT, 1o.9ea7 GAS LIFT, 11,952.EIt SEAL ASSY; 12,007 7 PBR; 12,008.5 PACKER', 12023.2 NIPPLE; 12,037.5 SOS; 12,047.1 APERF; 12,1320-12,1520- APERF; 12,1620-12,196.0- IPERF; 12,208.0-12,230 0- APERF; 12,230.0-12,244.0- PRODUCTION; 29.5-12 470 2 Casing Strings Casing Description OD CONDUCTOR (in) 16 ID (in) 15.062 Top (ftKB) 42.0 SB[ Depth (ftKB) Set 121.0 Depth (ND)... 121.0 WtlLen (I... 62,50 Grade H-40 Top Threatl WELDED Casing Description OD SURFACE (in) 95/8 10 (in) 8.921 Tap IRKS) 41.0 Set Depth (ftKB) Set 5,310.4 Depth (TVD)... 3,285.6 WtlLen (I... 47.00 Grade L-80 Top Thread BTC Casing Description OD PRODUCTION (in) 7 ID (1 1) 6.276 Top (ftK8) 29.5 Set Depth (ftK8) Set 12,470.2 Deplh (TVO)... 6,347.4 WtlLen (I... 26.00 Gratle L-80 Top Thread BTC-MOD Tubing Strings Tubing Description string Ma... ID (in) Top (ftKB) Set Depth (ft.. Set Depth (TVD) (... Wt (IbHt) Grade Tap Connection TUBING 31/2 2.992 30.3 12,009.1 6,023.1 9.30 L-80 EUEBrdABM0D Completion Details Top (11148) Top (TVD) (ftKB) Tap Incl (o) Item Des Com Nominal ID (In) 30.3 30.2 0.34 HANGER MCEVOY GEN IV HANGER 3.500 507.4 507.3 1.47 NIPPLE CAMCO DS 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.-IS." Depth (TVD) (... Wl (IbHI) Gratle 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 (') It.. Des Com Nominal ID (in) 12,008.5 6,022.7 45.16 PBR BAKER PBR W/ 1 O' 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 12,047A 6.049.9 45.05 SOS BAKER SHEAR OUT SUB 3,500 Perforations & Slots Top (ftKB) St. (ftKB) Top (TVD) Btm(TVD) (ftKB) (ftKB) Zone Date Shot Dens (shots/( 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/Powedet, ph, Odeg +/_ 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, 0 deg +/- 90 onenl 12,208.0 12,230.0 6,163.4 6,178.9 A-1, 3M-24 6/30/1994 4.0 IPERF F18neg. Titan phasing; 21/2. 12,230.0 12,244.0 6,178.9 6,188.8 A-1,3M-24 8/28/2001 6.0 APERF I Enedet/Powerjet, ph, 0 deg +1- 90 orient Mandrel Inserts St ati on N Top (ftKB) Top (TVD) (IRKS) Make Model OD (in) Sery Valve Type Latch Type Port Sim (in) TRO Run (psi) Run Date 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 11 GAS LIFT DMY BK-5 0.000 0.0 1/2/2008 Notes: General & Safety End Date Annotation 7/28/2010 NOTE: View Schematic w/ Alaska Schematic9.0 U b z 0 0 N C_ O E N V N Nr M ? N qq,� M [] N I I V O O N= O C CJ N C E Q p Q CL O F `n m M N Q O "O @ — p O O O a "O N m N rn O p� V ui z lY N Lo cp "O N U O m d U> UN UZ cD. ? of I=i ... (V E (V OMD (V Y Y fV l0 r O � A U of ; MN m of U' 0 a o� opp g 3N� 0 v.. g # 11 Hoc If O� If Ng� j1 II ;p� � r II aim m 1 r 11 n@c I l II a g I i rl II w I 11 11 1 app�N 11 3o�TJ �1 11 11 J P= I I 11 I I J aim I \ 111 II ios it II 11 O r 11 m O- O /mil N �O N (V N II �kO 2p�, nuMi Q� cu II N? cli ID (p M C � II U iota o NN u10iN II 'go wcL o, m w 11 MM@ �i if It g' p c A MV-J J TRANSMITTAL LETTER CHECKLIST WELL NAME: r`r� (�_ 3M—QgA-a! 3 PTD: 9s. Development Service Exploratory Stratigraphic Test Non -Conventional FIELD: 2, U 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. di% —�db API No. 50- dZ-may 3I -�- O d. V/ (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 Well Name: KUPARUK-RIV UNIT 3M-24AL3 Program DEV Well bore seg W I PTD#:2161030 Company CONOCOPHILLIPS ALASKA INC __ Initial Class/Type DEV / PEND GeoArea 890 Unit 11160 On/Off Shore On - Annular Disposal ❑ Administration 17 Nonconven. gas conforms to AS31.05.030(j.1.A),(j.2.A-D) NA 1 Permit fee attached NA 2 Lease number appropriate Yes 13 Unique well name and number Yes 14 Well located in a defined pool Yes 5 Well located proper distance from drilling unit boundary Yes 6 Well located proper distance from other wells Yes 7 Sufficient acreage available in drilling unit Yes 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 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 16 Pre -produced injector: duration of pre -production less than 3 months (For service well only) NA 18 Conductor string provided NA Engineering I19 Surface casing protects all known USDWs NA I20 CMT vol adequate to circulate on conductor & surf csg NA 21 CMT vol adequate to tie-in long string to surf csg NA 22 CMT will cover all knownproductivehorizons No 23 Casing designs adequate for C, T, B & permafrost Yes 24 Adequate tankage or reserve pit Yes 25 If a re -drill, has a 10-403 for abandonment been approved NA 26 Adequate wellbore separation proposed Yes 27 If diverter required, does it meet regulations NA Appr Date 28 Drilling fluid program schematic & equip list adequate Yes VTL 9/6/2016 I29 BOPEs, do they meet regulation Yes 30 BOPE press rating appropriate; test to -(put psig in comments) - Yes 31 Choke manifold complies w/API RP-53 (May 84) Yes 32 Work will occur without operation shutdown Yes 33 Is presence of 112S gas probable Yes 34 Mechanical condition of wells within AOR verified (For service well only) NA 35 Permit can be issued w/o hydrogen_ sulfide measures No Geology 36 Data presented on potential overpressure zones Yes 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 weekly progress reports [exploratory only] NA Geologic Engineering Public Commissioner: Date: Commissioner: Date . Date ofS �J� !� C er Ceiz. C),(-41& ADL0025523, Surf Loc; ADL0025524, Top Prod Intery & TD. KRU 3M-24AL3 KUPARUK RIVER, KUPARUK RIV OIL - 490100, governed by Conservation Order No. 432D.. CO 432D contains no spacing restrictions with respect to drilling unit boundaries. CO 432D has no interwell spacing restrictions. Wellbore will be more than 500' from an external property line where ownership or landownership changes. Conductor set in KRU 3M-24 Surface casing set in KRU 3M-24 Surface casing set and fully cemented Productive interval will be completed with uncemented slotted liner Rig has steel tanks, all waste to approved disposal wells Anti -collision analysis complete; no major risk failures Max formation pressure is 4305 psig(13.4 ppg EMW); will drill w/ 8.6 ppg EMW and maintain overbal w/ MPD MPSP is 3692 psig; will test BOPs_to 4200 psig H2S measures required Wells on 3M-Pad are H2S-bearing. H2S measures required. Max. potential reservoir pressure is 13.4 ppg EMW; will be drilled using 8.6 ppg mud and MPD technique. Onshore development lateral to be drilled.