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HomeMy WebLinkAbout220-0461 Guhl, Meredith D (OGC) From:Guhl, Meredith D (OGC) Sent:Wednesday, June 29, 2022 10:04 AM To:'Abbie Barker'; 'Carrie Janowski'; 'Cody Dinger'; 'Darci Horner - (C)'; 'Donna Ambruz'; 'Jerimiah Galloway'; 'Joseph Lastufka'; 'Josh Allely'; 'Juanita Lovett'; 'Tom Fouts' Subject:Kenai Expired Permit: 220-046 Hello,    The following Permit to Drill, issued to Hilcorp Alaska, has expired under Regulation 20 AAC 25.005 (g). The PTD will be  marked expired in the AOGCC database.    Kenai KU 44‐01, PTD 220‐046, issued 22 May 2020.    If you have any questions, please contact me.    Thank you,  Meredith        Meredith Guhl (she/her)  Petroleum Geology Assistant  Alaska Oil and Gas Conservation Commission  333 W. 7th Ave, Anchorage, AK  99501  meredith.guhl@alaska.gov  Direct: (907) 793‐1235  CONFIDENTIALITY NOTICE: This e‐mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation  Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.  The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e‐mail,  please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Meredith Guhl at  907‐793‐1235 or meredith.guhl@alaska.gov.    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 Monty M Myers Drilling Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Kenai Gas Field, Beluga/Upper Tyonek Gas Pool, KU 44-01 Hilcorp Alaska, LLC Permit to Drill Number: 220-046 Surface Location: 418' FSL, 1066' FWL, Sec. 6, T4N, R11W, SM, AK Bottomhole Location: 990' FSL, 679' FEL, Sec. 1, T4N, R12W, SM, AK Dear Mr. Myers: Enclosed is the approved application for the permit to drill the above referenced development well. Per Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or an AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Daniel T. Seamount, Jr. Commissioner DATED this ___ day of May, 2020. 22 Daniel T. Seamount, Jr. Digitally signed by Daniel T. Seamount, Jr. Date: 2020.05.22 08:59:43 -08'00' 1a. Type of Work:1b. Proposed Well Class: Exploratory - Gas Service - WAG Service - Disp 1c. 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: Bond No. 3. Address:6. Proposed Depth: 12. Field/Pool(s): MD: 7,114' TVD: 6,844' 4a. Location of Well (Governmental Section):7. Property Designation: Surface: Top of Productive Horizon:8. DNR Approval Number: 13. Approximate Spud Date: Total Depth:9. Acres in Property: 14. Distance to Nearest Property: 4b. Location of Well (State Base Plane Coordinates - NAD 27):10. KB Elevation above MSL (ft): 83' 15. Distance to Nearest Well Open Surface: x-271981 y- 2362473 Zone-4 65' to Same Pool: 2142' to KBU 11-07 16. Deviated wells:Kickoff depth: 350 feet 17. Maximum Potential Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 23 degrees Downhole: Surface: Hole Casing Weight Grade Coupling Length MD TVD MD TVD Cond 16" 84# X-56 Weld 120' Surface Surface 120' 120' 9-7/8" 7-5/8" 29.7# L-80 DWC/C 1,750' Surface Surface 1,750' 1,680' 6-3/4" 5-1/2" 17# L-80 CDC HTQ 6,500' Surface Surface 7,114' 6,844' 19.PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Junk (measured): TVD Hydraulic Fracture planned?Yes No 20. Attachments:Property Plat BOP Sketch Drilling Program Time v. Depth Plot Shallow Hazard Analysis Diverter Sketch Seabed Report Drilling Fluid Program 20 AAC 25.050 requirements Contact Name: Contact Email: Contact Phone: Date: Permit to Drill API Number: Permit Approval Number:50- Date: Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: Samples req'd: Yes No Mud log req'd: Yes No H2S measures: Yes No Directional svy req'd: Yes No Spacing exception req'd: Yes No Inclination-only svy req'd: Yes No Post initial injection MIT req'd: Yes No APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Sr Pet Eng Sr Pet Geo Sr Res Eng 6081' to nearest unit boundary 6/25/2020 Authorized Name: Monty Myers Authorized Title: Drilling Manager Monty Myers mmyers@hilcorp.com 777-8431 18. Casing Program:Top - Setting Depth - BottomSpecifications KU 44-01 Kenai Gas Field Beluga / Upper Tyonek Gas Pool 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503 Hilcorp Alaska, LLC 418' FSL, 1066' FWL, Sec 6, T4N, R11W, SM, AK FEEA028142, ADL392670 022224484 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 AAC 25.005 537 ft3 1252 889' FSL, 326' FEL, Sec 1, T4N, R12W, SM, AK 990' FSL, 679' FEL, Sec 1, T4N, R12W, SM, AK N/A 2927 1609 Total Depth MD (ft):Total Depth TVD (ft): Cement Quantity, c.f. or sacks Cement Volume MDSize Plugs (measured): (including stage data) Driven L - 675 ft3 / T - 209 ft3 Effect. Depth TVD (ft): Conductor/Structural Length Production Liner Casing Intermediate Commission Use Only Effect. Depth MD (ft): Authorized Signature: See cover letter for other requirements. Perforation Depth MD (ft): 21. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Surface Perforation Depth TVD (ft): GL / BF Elevation above MSL (ft): 5/14/2020 es N ype of W L l R L 1b S Class: os N es No s N o D s s s D 84 o : well is p G S S 20 S S S es No s No S G E S es No s Form 10-401 Revised 3/2020 This permit is valid for 24 months from the date of approval per 20 AAC 25.005(g) Digitally signed by Monty M Myers DN: cn=Monty M Myers, c=US, o=Hilcorp Alaska, LLC, ou=Technical Services - AK Drilling, email=mmyers@hilcorp.com Reason: I am approving this document Date: 2020.05.14 13:36:15 -08'00' Monty M Myers By Samantha Carlisle at 2:55 pm, May 14, 2020 *Diverter waiver to 20 AAC 25.035(h)(2) is approved *24 hour notice to AOGCC for BOPE test to 3500 psi, 2500 psi annular *CBL, MIT-IA to 2500 psi *10-403 required to perforate 133-20690-00-00220-046 2943 psi X X MGR21MAY20 X X 2285 psi 523 cu ft X 490 cu ft X 7,114 DSR-5/15/2020DLB 05/15/2020 X 05/22/2020 05/22/2020Daniel T. Seamount, Jr.Digitally signed by Daniel T. Seamount, Jr. Date: 2020.05.22 09:18:26 -08'00' KU 44-01 Drilling Program Kenai Gas Field Rev 0 May 14th, 2020 KU 44-01 Drilling Procedure Contents 1.0 Well Summary ........................................................................................................................... 2 2.0 Management of Change Information ........................................................................................ 3 3.0 Tubular Program:...................................................................................................................... 4 4.0 Drill Pipe Information: .............................................................................................................. 4 5.0 Internal Reporting Requirements ............................................................................................. 5 6.0 Planned Wellbore Schematic ..................................................................................................... 6 7.0 Drilling / Completion Summary ................................................................................................ 7 8.0 Mandatory Regulatory Compliance / Notifications .................................................................. 8 9.0 R/U and Preparatory Work ..................................................................................................... 10 10.0 N/U 16” Conductor Riser ........................................................................................................ 11 11.0 Drill 9-7/8” Hole Section .......................................................................................................... 13 12.0 Run 7-5/8” Surface Casing ...................................................................................................... 16 13.0 Cement 7-5/8” Surface Casing ................................................................................................. 19 14.0 BOP N/U and Test.................................................................................................................... 22 15.0 Drill 6-3/4” Hole Section .......................................................................................................... 23 16.0 Run 5-1/2” Production Casing ................................................................................................. 26 17.0 Cement 5-1/2” Production Casing ........................................................................................... 29 18.0 RDMO ...................................................................................................................................... 31 19.0 BOP Schematic ........................................................................................................................ 32 20.0 Wellhead Schematic ................................................................................................................. 33 21.0 Days Vs Depth .......................................................................................................................... 34 22.0 Geo-Prog .................................................................................................................................. 35 23.0 Anticipated Drilling Hazards .................................................................................................. 36 24.0 Hilcorp Rig 169 Layout ........................................................................................................... 38 25.0 FIT Procedure .......................................................................................................................... 39 26.0 Choke Manifold Schematic ...................................................................................................... 40 27.0 Casing Design Information ...................................................................................................... 41 28.0 6-3/4” Hole Section MASP ....................................................................................................... 42 29.0 Spider Plot (NAD 27) (Governmental Sections) ...................................................................... 43 30.0 Surface Plat (NAD 27) ............................................................................................................. 44 31.0 Directional Plan (wp05) ........................................................................................................... 46 Page 2 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 1.0 Well Summary Well KU 44-01 Pad & Old Well Designation KU 44-01 is a grass roots well on KGF Pad 14-06 Planned Completion Type 5-1/2” Production Longstring (monobore) Target Reservoir(s) Beluga Planned Well TD, MD / TVD 7,114 MD / 6,844’ TVD PBTD, MD / TVD 7,000’ MD / 6,731’ TVD Surface Location (Governmental) 418’ FSL, 1066’ FWL, Sec 6, T4N, R11W, SM, AK Surface Location (NAD 27) X=271981.62 Y=2362473.32 Surface Location (NAD 83) Top of Productive Horizon (Governmental) 889’ FSL, 326’ FEL, Sec 1, T4N, R12W, SM, AK TPH Location (NAD 27) X=270683.21, Y=2362870.85 TPH Location (NAD 83) BHL (Governmental) 990’ FSL, 679’ FEL, Sec 1, T4N, R12W, SM, AK BHL (NAD 27) X=270332.3, Y=2362978.79 BHL (NAD 83) AFE Number 2011786 (D, C, F) AFE Drilling Days 3 MOB, 20 DRLG AFE Completion Days AFE Drilling Amount $2,357,530 AFE Completion Amount Maximum Anticipated Pressure (Surface) 1252 psi Maximum Anticipated Pressure (Downhole/Reservoir) 1609 psi Work String 4-1/2” 16.6# S-135 CDS-40 RKB – GL 83’(65 + 18) Ground Elevation 65’ BOP Equipment 11” 5M Control Tech Type 90 Annular BOP 11” 5M Control Tech Type 82 Double Ram 11” 5M Control Tech Type 82 Single Ram 2943 psi 2285 psi Page 3 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 2.0 Management of Change Information Page 4 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 3.0 Tubular Program: Hole Section OD (in) ID (in) Drift (in) Conn OD (in) Wt (#/ft) Grade Conn Burst (psi) Collapse (psi) Tension (k-lbs) Cond 16” 15.01” 14.822 17” 84 J-55 Weld 2980 1410 - 9-7/8” 7-5/8” 6.875” 6.75” 8.5” 29.7 L-80 BTC 6890 4790 683 6-3/4” 5-1/2” 4.892” 4.767” 6.05” 17 P110HC USS-CDC 10600 8730 568 4.0 Drill Pipe Information: Hole Section OD (in) ID (in) TJ ID (in) TJ OD (in) Wt (#/ft) Grade Conn Burst (psi) Collapse (psi) Tension (k-lbs) All 4-1/2” 3.826 2.6875” 5.25” 16.6 S-135 CDS40 17,693 16,769 468k All casing will be new, PSL 1 (100% mill inspected, 10% inspection upon delivery to TSA in Fairbanks). L-80 Page 5 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 5.0 Internal Reporting Requirements 5.1 Fill out daily drilling report and cost report on Wellez. x Report covers operations from 6am to 6am x Click on one of the tabs at the top to save data entered. If you click on one of the tabs to the left of the data entry area – this will not save the data entered, and will navigate to another data entry tab. x Ensure time entry adds up to 24 hours total. x Try to capture any out of scope work as NPT. This helps later on when we pull end of well reports. 5.2 Afternoon Updates x Submit a short operations update each work day to pmazzolini@hilcorp.com, mmyers@hilcorp.com and cdinger@hilcorp.com 5.3 Intranet Home Page Morning Update x Submit a short operations update each morning by 7am on the company intranet homepage. On weekend and holidays, ensure to have this update in before 5am. Each rig will be assigned a username to login with. 5.4 EHS Incident Reporting x Notify EHS field coordinator. 1. This could be one of (3) individuals as they rotate around. Know who your EHS field coordinator is at all times, don’t wait until an emergency to have to call around and figure it out!!!! a. John Coston: O: (907) 777-6726 C: (907) 227-3189 b. Matt Hogge: O: (907) 777-8418 C: (907) 227-9829 2. Spills: Keegan Fleming: O:907-777-8477 C:907-350-9439 x Notify Drlg Manager 1. Monty M Myers: O: 907-777-8431 C: 907-538-1368 x Submit Hilcorp Incident report to contacts above within 24 hrs 5.5 Casing Tally x Send final “As-Run” Casing tally to mmyers@hilcorp.com and cdinger@hilcorp.com 5.6 Casing and Cmt report x Send casing and cement report for each string of casing to mmyers@hilcorp.com and cdinger@hilcorp.com Page 6 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 6.0 Planned Wellbore Schematic Page 7 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 7.0 Drilling / Completion Summary KU 44-01 is an S-shaped directional grassroots development well to be drilled off of the KGF 14-06 pad. Reservoir analysis and subsurface mapping has identified an optimal location for infill development in the Middle and Upper Beluga sands. The base plan is a directional wellbore with a kick off point at 350’ MD. Maximum hole angle will be 23 deg. and TD of the well will be 7,114’ TMD/ 6,844’ TVD, ending with 10 deg inclination left in the hole. Vertical section will be 4679 ft. Drilling operations are expected to commence approximately June 25th 2020. The Hilcorp Rig # 169 will be used to drill the wellbore then run casing and cement. Surface casing will be run to 1,750 MD / 1,680’ TVD and cemented to surface to ensure protection of any shallow freshwater resources. Cement returns to surface will confirm TOC at surface. If cmt returns to surface are not observed, a Temp log will be run between 6 – 18 hrs after CIP to determine TOC. Necessary remedial action will then be discussed with AOGCC authorities. All waste & mud generated during drilling and completion operations will be hauled to the Kenai Gas Field G&I facility for disposal / beneficial reuse depending on test results. General sequence of operations: 1. MOB Hilcorp Rig # 169 to well site 2. N/U conductor riser. (No diverter, diverter waiver requested) 3. Drill 9-7/8” hole to 1,750’ MD. Run and cmt 7-5/8” surface casing. 4. ND conductor riser, N/U & test 11” x 5M BOP. 5. Drill 6-3/4” hole section to 7,114’ MD. Perform Wiper trip. 6. Make cleanout run 7. POOH laying down drill pipe. 8. Run and cmt 5-1/2” production casing. 9. N/D BOP, N/U temp abandonment cap, RDMO. Reservoir Evaluation Plan: 1. Surface hole: GR + Res 2. Production Hole: GR + Res 3. Mud loggers from surface casing point to TD. Diverter waiver approved. 24 hour notice to AOGCC to witness. Casing test and FIT digital data to AOGCC. Page 8 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 8.0 Mandatory Regulatory Compliance / Notifications Regulatory Compliance Ensure that our drilling and completion operations comply with the below AOGCC regulations. If additional clarity or guidance is required on how to comply with a specific regulation, do not hesitate to contact the Anchorage Drilling Team. x BOPs shall be tested at (2) week intervals during the drilling of KU 44-01. Ensure to provide AOGCC 24 hrs notice prior to testing BOPs. x The initial test of BOP equipment will be to 250/3500 psi & subsequent tests of the BOP equipment will be to 250/3500 psi for 5/5 min (annular to 50% rated WP, 2500 psi on the high test for initial and subsequent tests). Confirm that these test pressures match those specified on the APD. x If the BOP is used to shut in on the well in a well control situation, we must test all BOP components utilized for well control prior to the next trip into the wellbore. This pressure test will be charted same as the 14 day BOP test. x All AOGCC regulations within 20 AAC 25.033 “Primary well control for drilling: drilling fluid program and drilling fluid system”. x All AOGCC regulations within 20 AAC 25.035 “Secondary well control for primary drilling and completion: blowout prevention equipment and diverter requirements” x Ensure AOGCC approved drilling permit is posted on the rig floor and in Co Man office. Regulation Variance Requests: x Diverter waiver requested due to the recent drilling of KU 24-32 and KU 11-07X nearby. No issues were experienced on either well drilling the surface hole. Surface casing will be set at the same depth on KU 44-01. No shallow hydrocarbon zones will be penetrated. Page 9 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 Summary of BOP Equipment and Test Requirements Hole Section Equipment Test Pressure (psi) 9-7/8” x No diverter utilized n/a 6-3/4” x 11” x 5M Annular BOP x 11” x 5M Double Ram o Blind ram in btm cavity x Mud cross x 11” x 5M Single Ram x 3-1/8” 5M Choke Line x 2-1/16” x 5M Kill line x 3-1/8” x 2-1/16” 5M Choke manifold x Standpipe, floor valves, etc Initial Test: 250/3500 (Annular 2500 psi) Subsequent Tests: 250/3500 (Annular 2500 psi) x Primary closing unit: Control Technologies accumulator unit, 5 station, 120 gallon (12 x 11 gal bottles). x Primary closing hydraulic pressure is provided by an electrically driven triplex pump. Emergency pressure is provided by bottled nitrogen. Required AOGCC Notifications: x Well control event (BOPs utilized to shut in the well to control influx of formation fluids). x 24 hours notice prior to spud. x 24 hours notice prior to testing BOPs. x 24 hours notice prior to casing running & cement operations. x Any other notifications required in APD. Additional requirements may be stipulated on APD and Sundry. Regulatory Contact Information: AOGCC Jim Regg / AOGCC Inspector / (O): 907-793-1236 / Email: jim.regg@alaska.gov Guy Schwartz / Petroleum Engineer / (O): 907-793-1226 / (C): 907-301-4533 / Email: guy.schwartz@alaska.gov Victoria Loepp / Petroleum Engineer / (O): 907-793-1247 / Email: victoria.loepp@alaska.gov Primary Contact for Opportunity to witness: AOGCC.Inspectors@alaska.gov Test/Inspection notification standardization format: http://doa.alaska.gov/ogc/forms/TestWitnessNotif.html Notification / Emergency Phone: 907-793-1236 (During normal Business Hours) Notification / Emergency Phone: 907-659-2714 (Outside normal Business Hours) Page 10 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 9.0 R/U and Preparatory Work 9.1 Set 16” conductor at +/-120’ below ground level. 9.2 Dig out and set impermeable cellar. 9.3 Install Seaboard slip-on 16-3/4” 3M “A” section. Ensure to orient wellhead so that tree will line up with flowline later. 9.4 Level pad and ensure enough room for layout of rig footprint and R/U. 9.5 Layout Herculite on pad to extend beyond footprint of rig. 9.6 R/U Hilcorp Rig # 169, spot service company shacks, spot & R/U company man & toolpusher offices. 9.7 RU Mud loggers on surface hole section for gas detection only. No samples required 9.8 After rig equipment has been spotted, R/U handi-berm containment system around footprint of rig. 9.9 Mix mud for 9-7/8” hole section. 9.10 Install 5-1/2” liners in mud pumps. x HHF-1000 mud pumps are rated at 3036 psi (85%) / 370 gpm (100%) at 120 strokes with 5-1/2” liners. Page 11 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 10.0 N/U 16” Conductor Riser 10.1 N/U 16” Conductor Riser x Ensure line does not direct flow from trip tank straight down the flowline. Fill up line and flowline should be oriented 90 degrees to each other at approx. the same height. x Ensure flowline outlet installed so that enough slope exists to carry cuttings to the shakers. x Consider adding additional drainage points at the bottom of the conductor riser if deemed necessary. x R/U fill up line to conductor riser. 10.2 Set wearbushing in wellhead. Diverter waiver approved per 20 AAC 25.035 (h)(2) Page 12 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 10.3 Rig Orientation on KGF 14-06 pad: Page 13 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 11.0 Drill 9-7/8” Hole Section 11.1 P/U 9-7/8” directional drilling assy: x Ensure BHA components have been inspected previously. x Drift and caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. x Ensure TF offset is measured accurately and entered correctly into the MWD software. x Have DD run hydraulics calculations on site to ensure optimum nozzle sizing. Hydraulics calculations and recommended TFA is attached below. x Workstring will be 4.5” 16.6# S-135 CDS40 11.2 Primary Bit: Page 14 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 11.3 4-1/2” Workstring & HWDP will come from Hilcorp. Jars will come from Weatherford. 11.4 Begin drilling out from 16” conductor at reduced flow rates to avoid broaching the conductor. 11.5 Drill 9-7/8” hole section to 1,750’ MD/ 1,680’ TVD. Confirm this setting depth with the geologist and Drilling Engineer while drilling the well. x Pump sweeps and maintain mud rheology to ensure effective hole cleaning. x Pump at 500 - 550 gpm. Ensure shaker screens are set up to handle this flowrate. x Utilize Inlet experience to drill through coal seams efficiently. Coal seam log will be provided by Hilcorp Geo team. x Keep swab and surge pressures low when tripping. x Make wiper trips every 500’ or every couple days unless hole conditions dictate otherwise. x Ensure shale shakers are functioning properly. Check for holes in screens on connections. x Adjust MW as necessary to maintain hole stability. x TD the hole section in a good shale between 1700’ MD and 1800’ MD. x Take MWD surveys every stand drilled (60’ intervals). 11.6 9-7/8” hole mud program summary: Weighting material to be used for the hole section will be barite. Additional barite will be on location to weight up the active system (1) ppg above highest anticipated MW. We will start with a simple gel + FW spud mud at 8.8 ppg. Pason PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller’s console, Co Man office, Toolpusher office, and mud loggers office. System Type: 8.8 – 9.5 ppg Pre-Hydrated Aquagel/freshwater spud mud Properties: Depths Density Viscosity Plastic Viscosity Yield Point API FL pH 120-1750’ 8.8 – 9.5 85-150 20 - 40 25 - 45 <10 8.5-9.0 8.8 – 9.5 Page 15 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 System Formulation: Aquagel + FW spud mud Product Concentration FRESH WATER SODA ASH AQUAGEL CAUSTIC SODA BARAZAN D+ BAROID 41 PAC-L /DEXTRID LT ALDACIDE G X-TEND II 0.905 bbl 0.5 ppb 12-15 ppb 0.1 ppb (9 pH) as needed as required for weight if required for <12 FL 0.1 ppb 0.02 ppb 11.7 At TD; pump sweeps, CBU, and pull a wiper trip back to the 16” conductor shoe. 11.8 TOH with the drilling assy, handle BHA as appropriate. Page 16 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 12.0 Run 7-5/8” Surface Casing 12.1 R/U and pull wearbushing. 12.2 R/U Weatherford 7-5/8” casing running equipment. x Ensure 7-5/8” BTC x CDS 40 XO on rig floor and M/U to FOSV. x R/U fill-up line to fill casing while running. x Ensure all casing has been drifted on the location prior to running. x Be sure to count the total # of joints on the location before running. x Keep hole covered while R/U casing tools. x Record OD’s, ID’s, lengths, S/N’s of all components w/ vendor & model info. 12.3 P/U shoe joint, visually verify no debris inside joint. 12.4 Continue M/U & thread locking shoe track assy consisting of: x (1) Shoe joint w/ float shoe bucked on (thread locked). x (1) Joint with coupling thread locked. x (1) Joint with float collar bucked on pin end & thread locked. x Install (2) centralizers on shoe joint over a stop collar. 10’ from each end. x Install (1) centralizer, mid tube on thread locked joint and on FC joint. x Ensure proper operation of float equipment. 12.5 Continue running 7-5/8” surface casing x Fill casing while running using fill up line on rig floor. x Use “API Modified” thread compound. Dope pin end only w/ paint brush. x Install (1) centralizer every other joint to 300’. Do not run any centralizers above 300’ in the event a top out job is needed. x Utilize a collar clamp until weight is sufficient to keep slips set properly. 7-5/8” DWC/C M/U Torque Casing OD Min Torque Max Torque 7-5/8” 21,700 ft-lbs 25,100 ft-lbs Page 17 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 Page 18 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 12.6 Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 12.7 Slow in and out of slips. 12.8 P/U casing hanger joint and M/U to string. Casing hanger joint will come out to the rig with the landing joint already M/U. Position the shoe as close to TD as possible. Strap the landing joint while it is on the deck and mark the joint at (1) ft intervals to use as a reference when landing the hanger. 12.9 Lower string and land out in wellhead. Confirm measurements indicate the hanger has correctly landed out in the wellhead profile. 12.10 R/U circulating equipment and circulate the greater of 1 x casing capacity or 1 x OH volume. Elevate the hanger offseat to avoid plugging the flutes. Stage up pump slowly and monitor losses closely while circulating. 12.11 After circulating, lower string and land hanger in wellhead again. Page 19 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 13.0 Cement 7-5/8” Surface Casing 13.1 Hold a pre-job safety meeting over the upcoming cmt operations. Make room in pits for volume gained during cement job. Ensure adequate cement displacement volume available as well. Ensure mud & water can be delivered to the cmt unit at acceptable rates. x Pump 20 bbls of freshwater through all of Halliburton’s equipment, taking returns to cuttings bin, prior to pumping any fluid downhole x How to handle cmt returns at surface. x Which pump will be utilized for displacement, and how fluid will be fed to displacement pump. x Positions and expectations of personnel involved with the cmt operation. 13.2 Document efficiency of all possible displacement pumps prior to cement job 13.3 R/U cmt head (if not already done so). Ensure top and bottom plugs have been loaded correctly. 13.4 Pump 5 bbls 10 ppg spacer. Test surface cmt lines. 13.5 Pump remaining 30 bbls of 10 ppg spacer. 13.6 Drop bottom plug. Mix and pump cmt per below recipe. 13.7 Cement volume based on annular volume + 75% open hole excess. Job will consist of lead & tail, TOC brought to surface. Estimated Total Cement Volume: Section: Calculation: Vol (BBLS) Vol (ft3) 12.0 ppg LEAD: 16” Conductor x 7-5/8” casing annulus: 120’ x .0932 bpf = 11.2 63 12.0 ppg LEAD: 9-7/8” OH x 7-5/8” Casing annulus: (1750’ – 120’) x .0382 bpf x 1.75 = 109 612 Total LEAD: 120.2 675 ft3 15.4 ppg TAIL: 9-7/8” OH x 7-5/8” Casing annulus: (1750’-1250’) x .0382 bpf x 1.75 = 33.4 188 15.4 ppg TAIL: 7-5/8” Shoe track: 80 x .04591 bpf = 3.7 21 Total TAIL: 37.1 bbl 209 ft3 2 86.7 427 170 sx 75.5 490 198 sx Page 20 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 Cement Slurry Design: 13.8 Attempt to reciprocate casing during cement pumping if hole conditions allow. Keep the hanger elevated above the wellhead while working. If the hole gets “sticky”, land the hanger on seat and continue with the cement job. 13.9 After pumping cement, drop top plug and displace cement with spud mud. 13.10 Ensure cement unit is used to displace cmt so that volume tracking is more accurate. 13.11 Displacement calculation: 1750’- 80’ = 1670’ x .04591 bpf = 77 bbls 13.12 Monitor returns closely while displacing cement. Adjust pump rate if necessary. If hanger flutes become plugged, open wellhead side outlet in cellar and take returns to cellar. Be prepared to pump out fluid from cellar. Have some sx of sugar available to retard setting of cement. Lead Slurry (1000’ MD to surface) Tail Slurry (1250’ to 1750’ MD) System Extended Conventional Density 12 lb/gal 15.4 lb/gal Yield 2.46 ft3/sk 1.22 ft3/sk Mixed Water 14.349 gal/sk 5.507 gal/sk Mixed Fluid 14.469 gal/sk 5.507 gal/sk Additives Code Description Concentration Code Description Concentration G Cement 94#/sk A Cement 94#/sk D110 Retarder 0.15 gal/sk BWOC D046 Anti Foam 0.2 % BWOC D046 Anti Foam 0.2 % BWOC D065 Dispersant 0.4 % BWOC D079 Extender 2.0 % BWOC S002 CaCl2 0.35 % BWOC D020 Extender 3.0 % BWOC D177 CaCl2 0.1 % BWOC 1250' Page 21 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 13.13 Do not overdisplace by more than ½ shoe track volume. Total volume in shoe track is 3.7 bbls. x Be prepared for cement returns to surface. If cmt returns are not observed to surface, be prepared to run a temp log between 12 – 18 hours after CIP. x Be prepared with small OD top out tubing in the event a top out job is required. The AOGCC will require us to run steel pipe through the hanger flutes. The ID of the flutes is 1.5”. 13.14 Bump the plug with 500 psi over displacement pressure. Bleed off pressure and confirm floats are holding. If floats do not hold, pressure up string to final circulating pressure and hold until cement is set. Monitor pressure build up and do not let it exceed 500 psi above final circulating pressure if pressure must be held. 13.15 R/D cement equipment. Flush out wellhead with FW. 13.16 Back out and L/D landing joint. Flush out wellhead with FW. 13.17 M/U pack-off running tool and pack-off to bottom of Landing joint. Set casing hanger packoff. Run in lock downs and inject plastic packing element. 13.18 Lay down landing joint and pack-off running tool. Ensure to report the following on wellez: x Pre flush type, volume (bbls) & weight (ppg) x Cement slurry type, lead or tail, volume & weight x Pump rate while mixing, bpm, note any shutdown during mixing operations with a duration x Pump rate while displacing, note whether displacement by pump truck or mud pumps, weight & type of displacing fluid x Note if casing is reciprocated or rotated during the job x Calculated volume of displacement , actual displacement volume, whether plug bumped & bump pressure, do floats hold x Percent mud returns during job, if intermittent note timing during pumping of job. Final circulating pressure x Note if pre flush or cement returns at surface & volume x Note time cement in place x Note calculated top of cement x Add any comments which would describe the success or problems during the cement job Send final “As-Run” casing tally & casing and cement report to cdinger@hilcorp.com and mmyers@hilcorp.com. This will be included with the EOW documentation that goes to the AOGCC. Page 22 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 14.0 BOP N/U and Test 14.1 N/U multi-bowl wellhead assy. Install 7-5/8” packoff P-seals. Test to 3000 psi. 14.2 N/U 11” x 5M BOP as follows: x BOP configuration from Top down: 11” x 5M annular BOP/11” x 5M double ram /11” x 5M mud cross/11” x 5M single ram x Double ram should be dressed with 2-7/8” X 5” variable bore rams in top cavity, blind ram in btm cavity. x Single ram should be dressed with 2-7/8” X 5” variable bore rams x N/U bell nipple, install flowline. x Install (2) manual valves & a check valve on kill side of mud cross. x Install (1) manual valve on choke side of mud cross. Install an HCR outside of the manual valve. 14.3 Run 4-1/2” BOP test assy, land out test plug (if not installed previously). x Test BOP to 250/3500 psi for 5/10 min. Test annular to 250/2500 psi for 5/10 min. x Ensure to leave “B” section side outlet valves open during BOP testing so pressure does not build up beneath the test plug. 14.4 R/D BOP test assy. 14.5 Dump and clean mud pits, send spud mud to G&I pad for injection. 14.6 Mix 9.0 ppg 6% KCL PHPA mud system. 14.7 R/U mud loggers for production hole section. 14.8 Rack back as much 4-1/2” DP in derrick as possible to be used while drilling the hole section. Page 23 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 15.0 Drill 6-3/4” Hole Section 15.1 Pull test plug, run and set wear bushing 15.2 Ensure BHA components have been inspected previously. 15.3 Drift and caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. 15.4 TIH, Conduct shallow hole test of MWD and confirm Gamma Ray and Resistivity LWD functioning properly. 15.5 Ensure TF offset is measured accurately and entered correctly into the MWD software. 15.6 Have DD run hydraulics calculations on site to ensure optimum nozzle sizing. Hydraulics calculations and recommended TFA is attached below. 15.7 Workstring will be 4-1/2” 16.6# S-135 CDS40. Ensure to have enough 4-1/2” DP in derrick to drill the entire open hole section without having to pick up pipe from the pipeshed. 15.8 6-3/4” hole section mud program summary: Weighting material to be used for the hole section will be barite, salt and calcium carbonate. Additional calcium carbonate will be on location to weight up the active system (1) ppg above highest anticipated MW. Pason PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller’s console, Co Man office, Toolpusher office, and mud loggers office. Page 24 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 System Type: 9.0 ppg 6% KCL PHPA fresh water based drilling fluid. Properties: MD Mud Weight Viscosity Plastic Viscosity Yield Point pH HPHT 1,750’- 7,114’ 9.0 – 10.0 40-53 15-25 15-25 8.5-9.5 ” 11.0 System Formulation: 6% KCL EZ Mud DP Product Concentration Water KCl Caustic BARAZAN D+ EZ MUD DP DEXTRID LT PAC-L BARACARB 5/25/50 BAROID 41 ALDACIDE G BARACOR 700 BARASCAV D 0.905 bbl 22 ppb (29 K chlorides) 0.2 ppb (9 pH) 1.25 ppb (as required 18 YP) 0.75 ppb (initially 0.25 ppb) 1-2 ppb 1 ppb 15 - 20 ppb (5 ppb of each) as required for a 9.0 – 10.0 ppg 0.1 ppb 1 ppb 0.5 ppb (maintain per dilution rate) 15.9 TIH w/ 6-3/4” directional assy to TOC. Shallow test MWD and LWD on trip in. Note depth TOC tagged on AM report. 15.10 R/U and test casing to 3500 psi / 30 min. Ensure to record volume / pressure and plot on FIT graph. AOGCC requirement is 50% of burst. 7-5/8” burst is 6890 psi / 2 = 3445 psi. 15.11 Drill out shoe track and 20’ of new formation. 15.12 CBU and condition mud for FIT. 15.13 Conduct FIT to 13.5 ppg EMW. Note: Offset field test data predicts frac gradient at the 7-5/8” shoe to be between 11 - 13 ppg EMW. A 13.5 ppg FIT results in a 4 ppg kick margin while drilling with the planned MW of 9.5 ppg. Kick tolerance = (13.5-9.0)X(1680/6844) = 1.10 15.14 Drill 6-3/4” hole section to 7,114’ MD / 6,844’ TVD x Pump sweeps and maintain mud rheology to ensure effective hole cleaning. 9.0 – 10.0 – g FIT MIT casing Casing test and FIT digitatl data to AOGCC for review. Conduct FIT to 13.5 ppg EMW. R/U and test casing to 3500 psi / 30 min. Page 25 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 x Pump at 225 - 300 gpm. Ensure shaker screens are set up to handle this flowrate. x Keep swab and surge pressures low when tripping. x Make wiper trips every 500’ unless hole conditions dictate otherwise. x Ensure shale shakers are functioning properly. Check for holes in screens on connections. x Adjust MW as necessary to maintain hole stability. Keep HTHP fluid loss < 10. x Take MWD surveys every 100’ drilled. Surveys can be taken more frequently if deemed necessary. x Take (3) sets of formation samples every 20’. 15.15 At TD; pump sweeps, CBU, and pull a wiper trip back to the 7-5/8” shoe. 15.16 TOH with the drilling assy, standing back drill pipe. 15.17 LD BHA 15.18 RD loggers, PU 6-3/4”clean out BHA, and TIH to TD. 15.19 Pump sweep, CBU and condition mud for casing run. 15.20 POOH LDDP and BHA 15.21 Install 5-1/2” pipe rams in BOP stack and test. Page 26 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 16.0 Run 5-1/2” Production Casing 16.1. R/U Weatherford 5-1/2” casing running equipment. x Ensure 5-1/2” CDC HTQ x CDS 40 crossover on rig floor and M/U to FOSV. x R/U fill up line to fill casing while running. x Ensure all casing has been drifted prior to running. x Be sure to count the total # of joints before running. x Keep hole covered while R/U casing tools. x Record OD’s, ID’s, lengths, S/N’s of all components w/ vendor & model info. 16.2. P/U shoe joint, visually verify no debris inside joint. 16.3. Continue M/U & thread locking shoe track assy consisting of: x (1) Shoe joint w/ shoe bucked on & threadlocked (coupling also thread locked). x (1) Joint with float collar bucked on pin end & threadlocked (coupling also thread locked). x Solid body centralizers will be pre-installed on shoe joint an FC joint. x Leave centralizers free floating so that they can slide up and down the joint. x Ensure proper operation of float shoe and float collar. x Utilize a collar clamp until weight is sufficient to keep slips set properly 16.4. Continue running 5-1/2” production casing x Fill casing while running using fill up line on rig floor. x Use “API Modified” thread compound. Dope pin end only w/ paint brush. x Install solid body centralizers on every joint across zones of interest, TBD after LWD. x Install solid body centralizers on every other joint to 7-5/8” shoe. Leave the centralizers free floating. x Pick up swell packer and place in string at approximately 1400’. 16.5. Continue running 5-1/2” production casing 5-1/2” CDC HTQ M/U torques Casing OD Minimum Maximum Yield Torque 5-1/2” 8,500 ft-lbs 11,500 ft-lbs 13,900 ft-lbs Page 27 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 Page 28 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 16.6. Run in hole w/ 5-1/2” casing to the 7-5/8” casing shoe. 16.7. Fill the casing with fill up line and break circulation every 1,000 feet to the shoe or as the hole dictates. 16.8. Obtain slack off weight, PU weight, rotating weight and torque of the casing. 16.9. Circulate 2X bottoms up at shoe, ease casing thru shoe. 16.10. Continue to RIH w/ casing no faster than 1 jt./minute. Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 16.11. Set casing slowly in and out of slips. 16.12. PU 5-1/2” X 6-3/4” swell packer to be placed at approximately 1400’. Swell packer should have 10’ handling pups installed on both ends with bow spring centralizers on pups. 16.13. Swedge up and wash last 2 joints to bottom. P/U 5’ off bottom. Note slack-off and pick-up weights. 16.14. Stage pump rates up slowly to circulating rate. Circ and condition mud with casing on bottom. Circulate 2X bottoms up or until pressures stabilize and mud properties are correct and the shakers are clean. Reduce the low end rheology of the drilling fluid by adding water and thinners. 16.15. Reciprocate string if hole conditions allow. Circ until hole and mud is in good condition for cementing. PU 5-1/2” X 6-3/4” swell packer to be placed at approximately 1400’ Page 29 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 17.0 Cement 5-1/2” Production Casing 17.1. Hold a pre-job safety meeting over the upcoming cmt operations. Make room in pits for volume gained during cement job. Ensure adequate cement displacement volume available as well. Ensure mud & water can be delivered to the cmt unit at acceptable rates. x Pump 20 bbls of freshwater through all of Halliburton’s equipment, taking returns to cuttings bin, prior to pumping any fluid downhole x How to handle cmt returns at surface, regardless of how unlikely it is that this should occur. x Which pump will be utilized for displacement, and how fluid will be fed to displacement pump. x Positions and expectations of personnel involved with the cmt operation. x Document efficiency of all possible displacement pumps prior to cement job. 17.2. Attempt to reciprocate the casing during cmt operations until hole gets sticky 17.3. Pump 5 bbls of 12.5 ppg Mud Push spacer. 17.4. Test surface cmt lines to 4500 psi. 17.5. Pump remaining 30 bbls 12.5 ppg Mud Push spacer. 17.6. Mix and pump lead and tail cement per below recipe. Ensure cement is pumped at designed weight. Job is designed to pump 5% OH excess. Section: Calculation: Vol (BBLS) Vol (ft3) 7-5/8” x 5-1/2” Csg Overlap: 500’ x 0.01653 = 8 46 6-3/4” OH x 5-1/2” Casing: (7114 – 1750) x 0.01487 x 1.05 = 84 470 Shoe Track: 80’ x 0.04591 = 3.7 21 Total Volume : 96 537 52294 1.9 11 .0232 410 sx Page 30 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 17.7. Drop wiper plug and displace with 6% KCl mud. 17.8. If hole conditions allow – continue reciprocating casing throughout displacement. This will ensure a high quality cement job with 100% coverage around the pipe. 17.9. If elevated displacement pressures are encountered, position casing at setting depth and cease reciprocation. Monitor returns & pressure closely while circulating. Notify Drilling Foreman immediately of any changes. 17.10. Bump the plug and pressure up to 500 psi over final lift pressure. Hold pressure for 3 minutes. 17.11. Do not overdisplace by more than ½ shoe track. Shoe track volume is 1.5 bbls. 17.12. Bleed pressure to zero to check float equipment. Watch for flow. Note amount of fluid returned after bumping plug and releasing pressure. 17.13. RD cementers and flush equipment. 17.14. WOC minimum of 12 hours, test casing to 2500 psi and chart for 30 minutes. Ensure to report the following on wellez: x Pre flush type, volume (bbls) & weight (ppg) x Cement slurry type, lead or tail, volume & weight x Pump rate while mixing, bpm, note any shutdown during mixing operations with a duration x Pump rate while displacing, note whether displacement by pump truck or mud pumps, weight & type of displacing fluid x Note if casing is reciprocated or rotated during the job x Calculated volume of displacement , actual displacement volume, whether plug bumped & bump pressure, do floats hold x Percent mud returns during job, if intermittent note timing during pumping of job. Final circulating pressure x Note if pre flush or cement returns at surface & volume x Note time cement in place x Note calculated top of cement x Add any comments which would describe the success or problems during the cement job Send final “As-Run” casing tally & casing and cement report to mmyers@hilcorp.com. This will be included with the EOW documentation that goes to the AOGCC. Page 31 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 18.0 RDMO 18.1. Install BPV in wellhead 18.2. N/D BOPE 18.3. N/U temp abandonment cap 18.4. RDMO Hilcorp Rig #169 POST Rig CBL of 5-1/2" and MIT-IA to 2500 psi. Separate 10-403 must be submitted to perforate. Page 32 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 19.0 BOP Schematic Page 33 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 20.0 Wellhead Schematic Page 34 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 21.0 Days Vs Depth Page 35 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 22.0 Geo-Prog Well Name:KU 44-01 Survey Type RKB Field Name:Kenai Gas Field Surface Hole:83 Pool Name: Bottom Hole: 169 State:Alaska 18 Field Location:Onshore Coord Ref Sys:NAD27 AK Zone 4 65 County/Parish:Kenai Penninsula Borough Objective: Reference Plan: P3_A4 Sandstone Water 3489 3,219.0 -3201 2362590.25 270878.47 1440.45 0.45 P3_A8 Sandstone Gas/Water 3807 3,527.0 -3509 2362612.1 270802.5 947 0.27 P3_A9 Sandstone Gas/Water 3857 3,576.0 -3558 2362614.51 270794.1 1601.1 0.45 P3_A10 Sandstone Gas/Water 3876 3,594.0 -3576 2362615.39 270791.03 440 0.12 P3_A11 Sandstone Gas/Water 3949 3,666.0 -3648 2362618.89 270778.84 500 0.14 P4_B1 Sandstone Gas/Water 4030 3,746.0 -3728 2362622.77 270765.32 1623 0.44 P6_C1 Sandstone GAS 4723 4,429.0 -4411 2362655.94 270649.62 250 0.06 P6_C2 Sandstone GAS 4889 4,593.0 -4575 2362663.91 270621.84 250 0.05 U_BELUGA Sandstone Gas/Water 4985 4,687.0 -4669 2362668.48 270605.89 1526 0.33 UB_3 Sandstone Gas 5148 4,847.0 -4829 2362676.28 270578.68 1875 0.39 UB_4 Sandstone Gas 5220 4,919.0 -4901 2362679.75 270566.57 2008 0.41 UB_5B Sandstone Gas 5383 5,079.0 -5061 2362687.54 270539.43 1329 0.26 UB_7 Sandstone Gas 5460 5,154.0 -5136 2362691.21 270526.62 1008 0.20 UB_8 Sandstone Gas 5547 5,240.0 -5222 2362695.37 270512.11 2135 0.41 M_BELUGA Sandstone Gas/Water 5658 5,349.0 -5331 2362700.68 270493.6 2147 0.40 MB_3 Sandstone Gas/Water 5833 5,522.0 -5504 2362709.05 270464.39 2343 0.43 L_BELUGA Sandstone Gas/Water 6438 6,118.0 -6100 2362738.02 270363.37 2745 0.45 LB_1B Sandstone Gas 6515 6,194.0 -6176 2362741.74 270350.4 2269 0.37 LB_2A Sandstone Gas 6807 6,482.0 -6464 2362755.71 270301.68 2602 0.40 LB_2C Sandstone Gas/Water 6884 6,557.0 -6539 2362759.39 270288.85 2942.55 0.45 = Reservoir Objectives = Possible Geo Hazards TARGETRADIUS Mud Logging: LWD Data: Other Log Data: Coreing: Frac Half-Length SH Max Direction Surf. Inter. Prod. NOTES: DATA COLLECTION REQUIREMENTS: OTHER COMMENTS LWD Triple Combo; GeoTap Pressure Stations PROSED PIPE SET DEPTHS Chance of Success & Anticipated Rate ARTIFICIAL LIFT EQUIPMENT OD TUBING SIZE Target Sterling and Upper Beluga sands on the West side of structure. COMPLETION TYPE Monobore Fault Constraints 100 FT Surface casing to total depth, 30 ft samples with 20' samples in zones of interest, two sets of dry cut cuttings, KU 44-01 wp02ANTICIPATED FORMATION TOPS & GEOHAZARDS Geo Summary/ Justification: Sterling and upper beluga offtake in the local area has been minimal. Log shows, pressure data support remaining prospects TOP NAME LITHOLOGY EXPECTED FLUID MD (FT) TVD (FT) TVDSS (FT)NORTHING EASTING Est. Pressure Gradient Ground Elevation: GEOLOGICAL PROGNOSIS Proposed x = 2,362,473.32 y = 271,981.62 TVD Ref Datum: TVD Ref Elevation: Planned Rig: Rig Height: x = 2,362,978.79 y = 270,332.30 7,114' MD 6,844' TVD Page 36 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 23.0 Anticipated Drilling Hazards 9-7/8” Hole Section: Lost Circulation: Ensure 500 lbs of medium/coarse fibrous material & 500 lbs different sizes of Calcium Carbonate are available on location to mix LCM pills at moderate product concentrations. Hole Cleaning: Maintain rheology w/ gel and gel extender. Sweep hole with gel or flowzan sweeps as necessary. Optimize solids control equipment to maintain density, sand content, and reduce the waste stream. Maintain YP between 25 – 45 to optimize hole cleaning and control ECD. Wellbore stability: Lithology through this zone is a composite of pebble conglomerate and sand in the upper intervals with intermittent clay matrix. Carbonaceous material and coal may be noted. Gravel sizes that are larger than normal can cause hole-cleaning problems. If encountered, be prepared to increase the viscosity. Excessive quantities of gravel and sand may indicate wellbore instability. Increase properties up to a YP of ~50 - ~60 lbs/100ft2 to combat this issue. Maintain low flow rates for the initial 200’ of drilling to reduce the likelihood of washing out the conductor shoe. To help insure good cement to surface after running the casing, condition the mud to a YP of 25 –30 prior to cement operations. Do not lower the YP beyond 25 to avoid trouble with sands that may be found on this well. Have Desco DF, SAPP, and water on hand to ensure the desired rheologies can be achieved. H2S: H2S is not present in this hole section. No abnormal pressures or temperatures are present in this hole section. Page 37 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 6-3/4” Hole Section: Lost Circulation: Ensure 1000 lbs of each of the different sizes of Calcium Carbonate are available on location to mix LCM pills at moderate product concentrations. Hole Cleaning: Maintain rheology w/ viscosifier as necessary. Sweep hole w/ 20 bbls hi-vis pills as necessary. Optimize solids control equipment to maintain density and minimize sand content. Maintain YP between 20 - 30 to optimize hole cleaning and control ECD. Wellbore stability: Maintain MW as necessary using additions of Calcium Carbonate as weighting material. A torque reduction lube may be used in this hole section in concentrations up to 3% if needed. Maintain 6% KCl in system for shale inhibition. Coal Drilling: The following lessons were learned from extensive experience drilling coal seams in Cook Inlet. The need for good planning and drilling practices is also emphasized as a key component for success. x Keep the drill pipe in tension to prevent a whipping effect which can disturb coal sections. x Use asphalt-type additives to further stabilize coal seams. x Increase fluid density as required to control running coals. x Emphasize good hole cleaning through hydraulics, ROP and system rheology. H2S: H2S is not present in this hole section. No abnormal temperatures are present in this hole section. Page 38 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 24.0 Hilcorp Rig 169 Layout Page 39 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 25.0 FIT Procedure Formation Integrity Test (FIT) and Leak-Off Test (LOT) Procedures Procedure for FIT: 1. Drill 20' of new formation below the casing shoe (this does not include rat hole below the shoe). 2. Circulate the hole to establish a uniform mud density throughout the system. P/U into the shoe. 3. Close the blowout preventer (ram or annular). 4. Pump down the drill stem at 1/4 to 1/2 bpm. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) vs. drill pipe pressure until appropriate surface pressure is achieved for FIT at shoe. 6. Shut down at required surface pressure. Hold for a minimum 10 minutes or until the pressure stabilizes. Record time vs. pressure in 1-minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. The pre-determined surface pressure for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measures are required. Where required, the LOT is performed in the same fashion as the formation integrity test. Instead of stopping at a pre-determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with an FIT. Page 40 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 26.0 Choke Manifold Schematic Page 41 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 27.0 Casing Design Information 9-7/8"Mud Density:8.8 ppg 6-3/4"Mud Density:10 ppg Mud Density: 1609 psi (see attached M ASP determination & calculation) 1252 psi (see attached M ASP determination & calculation) Collapse Calculation: Section Calculation 1 Normal gradient external stress (0.45 psi/ft) and the casing evacuated for the internal stress 1234 7-5/8" 5-1/2" 00 0 0 1,750 7,114 1,680 6,844 1,750 7,114 29.7 17 L-80 L-80 DWC CDC HTQ 51,975 120,938 51,975 120,938 683 428 13.14 3.54 731 3,080 4,790 6,290 6.55 2.04 475 1,609 6,890 7,740 14.51 4.81 Collapse Pressure at bottom (Psi) Calculation & Casing Design Factors Kenai Gas Field Calculation/Specification Casing OD Bottom (MD) Bottom (TVD) Top (MD) Tension at Top of Section (lbs) Design Criteria: Minimum Yield (psi) Weight (ppf) Grade Connection Weight w/o Bouyancy Factor (lbs) Min strength Tension (1000 lbs) Collapse Resistance w/o tension (Psi) Worst Case Safety Factor (Collapse) MASP (psi) Worst Case Safety Factor (Tension) Casing Section MASP: Drilling Mode MASP: Length Top (TVD) Worst case safety factor (Burst) DATE: 05/14/2020 WELL: KU 44-01 FIELD: Kenai Gas Field DESIGN BY: Monty M Myers Hole Size Hole Size Hole Size MASP: Production Mode MASP =2285 psi 3.38 1 609 81 Page 42 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 28.0 6-3/4” Hole Section MASP MD TVD Planned Top: 0 0 Planned TD: 7114 6844 Anticipated Formations and Pressures: Formation TVD Est Pressure Oil/Gas/Wet PPG Grad P3_A4 3219 1440 Water 8.6 0.45 P3_A8 3527 947 Gas/Water 5.2 0.27 P3_A9 3576 1601 Gas/Water 8.6 0.45 P3_A10 3594 440 Gas/Water 2.4 0.12 P3_A11 3666 500 Gas/Water 2.6 0.14 P4_B1 3746 1623 Gas/Water 8.3 0.43 P6_C1 4429 250 GAS 1.1 0.06 P6_C2 4593 250 GAS 1.0 0.05 U_BELUGA 4687 1526 Gas/Water 6.3 0.33 UB_3 4847 1875 Gas 7.4 0.39 UB_4 4919 2008 Gas 7.9 0.41 UB_5B 5079 1329 Gas 5.0 0.26 UB_7 5154 1008 Gas 3.8 0.20 UB_8 5240 2135 Gas 7.8 0.41 M_BELUGA 5349 2147 Gas/Water 7.7 0.40 MB_3 5522 2343 Gas/Water 8.2 0.42 L_BELUGA 6118 2745 Gas/Water 8.6 0.45 LB_1B 6194 2269 Gas 7.0 0.37 LB_2A 6482 2602 Gas 7.7 0.40 LB_2C 6557 2943 Gas/Water 8.6 0.45 TD 6844 3000 Gas/Water 8.4 0.44 Offset Well Mud Densities Well MW range Top (TVD) Bottom (TVD) Date KBU 11-17X 9 - 9.2 1,587 5,464 2009 KBU 14-08 9 - 9.2 1,510 5,432 2008 KBU 41-18X 9 - 9.2 1,500 5,391 2008 KBU 24-7X 9 - 9.7 1,502 5,326 2006 KBU 32-08 9.3 - 9.8 1,446 5,401 2014 KBU 43-07Y 9.5 - 9.7 1,540 5,738 2014 Assumptions: 1. Fracture gradient at shoe (1680' TVD) is estimated at 17 ppg based on field test data. 2. Maximum planned mud density for the 6-3/4" hole section is 10.0 ppg. 3. Calculations assume "Unknown" reservoir contains 100% gas (worst case). 4. Calculations assume worst case event is 100% evacuation of wellbore to gas. Fracture Pressure at 7-5/8" shoe considering a full column of gas from shoe to surface: TVD Frac Grad 1680 ft X 0.884 psi/ft 1485 psi 1485(psi) - [0.1(psi/ft)*1680(ft)]= 1317 psi MASP from pore pressure during production mode (Complete evacuation to gas) 3576 ft X 0.450 psi/ft 1609 psi Downhol e 1609(psi) - [0.1(psi/ft)* 3576 (ft)]= 1252 psi Surface Summary: 1. MASP while drilling 6-3/4" production hole is governed by pore pressure from reservoir with entire wellbore evacuated to gas KU 44-01 Kenai Gas Field 6-3/4" Hole Section Maximum Anticipated Surface Pressure Calculation 6657x .45= 2943 psi Revised MASP 2285 psi from Max downhole press of 2943 psi (LB-2C) 2943 - .1(6657) =2285 psi LB_2C 6557 2943 Gas/Water 8.6 0.45 formation. DLB 2943 psi 2285 psi Pressure calculations by Page 43 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 29.0 Spider Plot (NAD 27) (Governmental Sections) KU 44-01 Page 44 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 30.0 Surface Plat (NAD 27) Page 45 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 Page 46 Version 0 May, 2020 KU 44-01 Drilling Procedure Rev 0 31.0 Directional Plan (wp05)               !""# $ %  $%&    -500 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000True Vertical Depth (1000 usft/in)-1000 -500 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 Vertical Section at 285.94° (1000 usft/in) Hogwarts Tgt1 20" 7 5/8" x 9-7/8" 5 1/2" X 6-3/4" 5 0 0 1 0 0 0 1 50 0 2 0 0 0 2 5 0 0 3 0 0 0 3 5 0 0 4 0 0 0 4 5 0 0 5 00 0 5 5 00 6 0 0 0 6 50 0 7 0 00 71 1 4 KU 44-01 wp05 Start Dir 3º/100' : 350' MD, 350'TVD End Dir : 1091.33' MD, 1072.86' TVD Start Dir 3º/100' : 1291.33' MD, 1257.98'TVD End Dir : 1529.56' MD, 1477.95' TVD Start Dir 3º/100' : 3364.63' MD, 3163.89'TVD End Dir : 3808.23' MD, 3588' TVD Total Depth : 7114.32' MD, 6843.87' TVD P3_A4 P3_A8 P4_B1 P6_C1 P6_C2 U_BELUGA M_BELUGA L_BELUGA Hilcorp Alaska, LLC Calculation Method:Minimum Curvature Error System:ISCWSA Scan Method: Closest Approach 3D Error Surface: Pedal Curve Warning Method: Error Ratio WELL DETAILS: Plan: KU 44-01 65.00 +N/-S +E/-W Northing Easting Latittude Longitude 0.00 0.00 2362473.32 271981.62 60° 27' 38.244 N 151° 15' 47.706 W SURVEY PROGRAM Date: 2020-04-28T00:00:00 Validated: Yes Version: Depth From Depth To Survey/Plan Tool 18.00 1750.00 KU 44-01 wp05 (KU 44-01) 3_MWD+IFR1+MS+Sag 1750.00 7114.32 KU 44-01 wp05 (KU 44-01) 3_MWD+IFR1+MS+Sag FORMATION TOP DETAILS TVDPath TVDssPath MDPath Formation 3284.00 3201.00 3493.59 P3_A4 3592.00 3509.00 3812.29 P3_A8 3811.00 3728.00 4034.67 P4_B1 4494.00 4411.00 4728.20 P6_C1 4658.00 4575.00 4894.73 P6_C2 4752.00 4669.00 4990.18 U_BELUGA 5414.00 5331.00 5662.40 M_BELUGA 6183.00 6100.00 6443.26 L_BELUGA REFERENCE INFORMATION Co-ordinate (N/E) Reference:Well Plan: KU 44-01, True North Vertical (TVD) Reference:RKB As-%XLOW @ 83.00usft Measured Depth Reference:RKB As-%XLOW @ 83.00usft Calculation Method:Minimum Curvature Project:Kenai Gas FieldSite:KGF 14-6 Pad Well:Plan: KU 44-01 Wellbore:KU 44-01 Design:KU 44-01 wp05 Kenai Gas Field KGF 14-6 Pad Plan: KU 44-01 KU 44-01 KU 44-01 wp05 4.994 CASING DETAILS TVD TVDSS MD Size Name 120.00 37.00 120.00 20 20" 1680.47 1597.47 1750.00 7-5/8 7 5/8" x 9-7/8" 6843.87 6760.87 7114.32 5-1/2 5 1/2" X 6-3/4" SECTION DETAILS Sec MD Inc Azi TVD +N/-S +E/-W Dleg TFace VSect Target Annotation 1 18.00 0.00 0.00 18.00 0.00 0.00 0.00 0.00 0.00 2 350.00 0.00 0.00 350.00 0.00 0.00 0.00 0.00 0.00 Start Dir 3º/100' : 350' MD, 350'TVD 3 1091.33 22.24 300.00 1072.86 71.04 -123.05 3.00 300.00 137.82 End Dir : 1091.33' MD, 1072.86' TVD 4 1291.33 22.24 300.00 1257.98 108.89 -188.60 0.00 0.00 211.25 Start Dir 3º/100' : 1291.33' MD, 1257.98'TVD 5 1529.56 23.26 281.64 1477.95 140.96 -273.82 3.00 -90.39 302.01 End Dir : 1529.56' MD, 1477.95' TVD 6 3364.63 23.26 281.64 3163.89 287.11 -983.56 0.00 0.00 1024.59 Start Dir 3º/100' : 3364.63' MD, 3163.89'TVD 7 3808.23 10.00 286.00 3588.00 315.52 -1106.92 3.00 176.71 1151.01 Hogwarts Tgt1 End Dir : 3808.23' MD, 3588' TVD 8 7114.32 10.00 286.00 6843.87 473.76 -1658.78 0.00 0.00 1725.11 Total Depth : 7114.32' MD, 6843.87' TVD -400-267-1330133267400533667800South(-)/North(+) (200 usft/in)-1733 -1600 -1467 -1333 -1200 -1067 -933 -800 -667 -533 -400 -267 -133 0 133West(-)/East(+) (200 usft/in)Hogwarts Tgt120"7 5/8" x 9-7/8"5 1/2" X 6-3/4"2505007501000125015001750200022502500275030003250350037504000425045004750500052505500575060006250650067506844KU 44-01 wp05Start Dir 3º/100' : 350' MD, 350'TVDEnd Dir : 1091.33' MD, 1072.86' TVDStart Dir 3º/100' : 1291.33' MD, 1257.98'TVDEnd Dir : 1529.56' MD, 1477.95' TVDStart Dir 3º/100' : 3364.63' MD, 3163.89'TVDEnd Dir : 3808.23' MD, 3588' TVDTotal Depth : 7114.32' MD, 6843.87' TVDProject: Kenai Gas FieldSite: KGF 14-6 PadWell: Plan: KU 44-01Wellbore: KU 44-01Plan: KU 44-01 wp05WELL DETAILS: Plan: KU 44-0165.00+N/-S +E/-W NorthingEastingLatittude Longitude0.000.002362473.32 271981.62 60° 27' 38.244 N 151° 15' 47.706 WREFERENCE INFORMATIONCo-ordinate (N/E) Reference:Well Plan: KU 44-01, True NorthVertical (TVD) Reference:RKB As-%XLOW @ 83.00usftMeasured Depth Reference:RKB As-%XLOW @ 83.00usftCalculation Method:Minimum CurvatureCASING DETAILSTVD TVDSS MD Size Name120.00 37.00 120.00 20 20"1680.47 1597.47 1750.00 7-5/8 7 5/8" x 9-7/8"6843.87 6760.87 7114.32 5-1/2 5 1/2" X 6-3/4" -600-400-2000200400600800100012001400South(-)/North(+) (300 usft/in)-2200 -2000 -1800 -1600 -1400 -1200 -1000 -800 -600 -400 -200 0 200 400 600West(-)/East(+) (300 usft/in)5001000150020002500KBU 31-07RD5001000150020002500KBU 31-07500100015002000KBU 32-065001000150020002 5 0 0 3 0 0 0 3 5 0 0 4000450050005500KU 11-07X50010001500200025003000KU 13-65001 0 0 015002000250030003500400 04500500055006000 6500 7000 750080008500900095009905KU 14X-65 0 010001500 20002500KBU 23-07500100015002000250030003500400045005000550060006500700075008000850090009500100001050011000115001200012500130001350014000145001500015042KU 14-65001000150020002500300035004000450050005341KU 14-06RD50010001500200025003000350040004364KU 21-750010001185KU 21-7PB0500100015002 0 0 0250030003500KBU 24-060500100015002 0 0 025003000350060006500700075007622KBU 24-06RD50010001500KU 42-12 wp06500100015002000KBU 22-065001000150020002500300035004000450050005 5 0 0 6 0 0 0650070007500KDU 15001000150020002500300035004000450050005 5 0 0 6 0 0 0650070007500KDU 1 PB15001000150020002500300035004000450050005500KBU 22-06Y5 0 0100 01500 2000 250030003500400045005000550060006500700075007569KBU 14-06Y5001000150020002500KBU 11-0750010001500200025003000350040004500KBU 23X-65001000150020002500300035004000450050005500600065006844KU 44-01 wp05Azimuths to True NorthMagnetic North: 14.71°Magnetic 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"!7 ! 9    :     ; <= )&   ;  > &0 ;    ; $   &0    ?  $ #4  $ )   5&   9  > >  &      ; ;97:;:0; < ; :&     0.001.503.004.50Separation Factor0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 4400 4800 5200 5600 6000 6400 6800 7200Measured DepthKDU 1No-Go Zone - Stop DrillingCollision Avoidance Req.Collision Risk Procedures Req.NOERRORSWELL DETAILS:Plan: KU 44-01 NAD 1927 (NADCON CONUS)Alaska Zone 0465.00+N/-S +E/-W Northing EastingLatittudeLongitude0.000.002362473.32 271981.62 60° 27' 38.244 N 151° 15' 47.706 WREFERENCE INFORMATIONCo-ordinate (N/E) Reference:Well Plan: KU 44-01, True NorthVertical (TVD) Reference:RKB As-%XLOW @ 83.00usftMeasured Depth Reference:RKB As-%XLOW @ 83.00usftCalculation Method:Minimum CurvatureSURVEY PROGRAMDate: 2020-04-28T00:00:00 Validated: Yes Version: Depth From Depth To Survey/PlanTool18.00 1750.00 KU 44-01 wp05 (KU 44-01) 3_MWD+IFR1+MS+Sag1750.00 7114.32 KU 44-01 wp05 (KU 44-01) 3_MWD+IFR1+MS+Sag0.0030.0060.0090.00120.00150.00Centre to Centre Separation (50.00 usft/in)0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 4400 4800 5200 5600 6000 6400 6800 7200Measured DepthKU 14X-6KBU 23-07KU 21-7KU 21-7PBKDU 1KDU 1 PB1KBU 22-06YKBU 14-06YKBU 11-07GLOBAL FILTER APPLIED: All wellpaths within 200'+ 100/1000 of reference18.00 To 7114.32Project: Kenai Gas FieldSite: KGF 14-6 PadWell: Plan: KU 44-01Wellbore: KU 44-01Plan: KU 44-01 wp05Ladder / S.F. PlotsCASING DETAILSTVD TVDSS MD Size Name120.00 37.00 120.00 20 20"1680.47 1597.47 1750.00 7-5/8 7 5/8" x 9-7/8"6843.87 6760.87 7114.32 5-1/2 5 1/2" X 6-3/4" Revised 2/2015 TRANSMITTAL LETTER CHECKLIST WELL NAME: ______________________________________ PTD: _____________________________________________ ___ Development ___ Service ___ Exploratory ___ Stratigraphic Test ___ Non-Conventional FIELD: ____________________________ POOL: ______________________________________ Check Box for Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI LATERAL (If last two digits in API number are between 60-69) The permit is for a new wellbore segment of existing well Permit No. _____________, API No. 50-_______________________. Production should continue to be reported as a function of the original API number stated above. Pilot Hole 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 name (_______________________PH) and API number (50-_____________________) from records, data and logs acquired for well (name on permit). Spacing Exception The permit is approved subject to full compliance with 20 AAC 25.055. Approval to produce/inject is contingent upon issuance of a conservation order approving a spacing exception. (_____________________________) as Operator assumes the liability of any protest to the spacing exception that may occur. Dry Ditch Sample All dry ditch sample sets submitted to the AOGCC must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non- Conventional Well Please note the following special condition of this permit: Production or production testing of coal bed methane is not allowed for well ( ) until after ( ) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (________________________) must contact the AOGCC to obtain advance approval of such water well testing program. Well Logging Requirements 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 (_______________________________) in the attached application, the following well logs are also required for this well: Per Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. KU 44-01 220-046 X X X Kenai Gas Beluga/Upper Tyonek Gas WELL PERMIT CHECKLISTCompanyHilcorp Alaska, LLCWell Name:KENAI UNIT 44-01Initial Class/TypeDEV / PENDGeoArea820Unit51120On/Off ShoreOnProgramDEVField & PoolWell bore segAnnular DisposalPTD#:2200460KENAI, BELUGA/UP TYONEK GAS - 448571NA1 Permit fee attachedYes2 Lease number appropriateYes3 Unique well name and numberYes4 Well located in a defined poolYes5 Well located proper distance from drilling unit boundaryYes6 Well located proper distance from other wellsYes7 Sufficient acreage available in drilling unitYes8 If deviated, is wellbore plat includedYes9 Operator only affected partyYes10 Operator has appropriate bond in forceYes11 Permit can be issued without conservation orderYes12 Permit can be issued without administrative approvalYes13 Can permit be approved before 15-day waitNA14 Well located within area and strata authorized by Injection Order # (put IO# in comments) (ForNA15 All wells within 1/4 mile area of review identified (For service well only)NA16 Pre-produced injector: duration of pre-production less than 3 months (For service well only)NA17 Nonconven. gas conforms to AS31.05.030(j.1.A),(j.2.A-D)Yes18 Conductor string providedYes 7 5/8" set at 1750 ft19 Surface casing protects all known USDWsYes20 CMT vol adequate to circulate on conductor & surf csgYes 5 1/2" long string will have swell packer and cement in linerlap.21 CMT vol adequate to tie-in long string to surf csgYes22 CMT will cover all known productive horizonsYes BTC calcs are suppled and with in industry standards.23 Casing designs adequate for C, T, B & permafrostYes Rig has steel pits. Waste will be hauled to KGF disposal wells.24 Adequate tankage or reserve pitNA25 If a re-drill, has a 10-403 for abandonment been approvedYes No issues with collision26 Adequate wellbore separation proposedNA Diverter waived.27 If diverter required, does it meet regulationsYes Max form pressure at 2943 psi (8.6PPG EMW) Drilling with 9-10 ppg mud28 Drilling fluid program schematic & equip list adequateYes29 BOPEs, do they meet regulationYes MASP = 2285 psi will test BOPE to 3500 psi30 BOPE press rating appropriate; test to (put psig in comments)Yes31 Choke manifold complies w/API RP-53 (May 84)Yes32 Work will occur without operation shutdownNo33 Is presence of H2S gas probableNA34 Mechanical condition of wells within AOR verified (For service well only)Yes Nearby wells did not encounter H2S gas. Measures not required.35 Permit can be issued w/o hydrogen sulfide measuresYes36 Data presented on potential overpressure zonesNA37 Seismic analysis of shallow gas zonesNA38 Seabed condition survey (if off-shore)NA39 Contact name/phone for weekly progress reports [exploratory only]ApprDLBDate5/15/2020ApprGLSDate5/21/2020ApprDLBDate5/15/2020AdministrationEngineeringGeologyGeologic Commissioner:Date:Engineering Commissioner:DatePublic CommissionerDateCement packer completion… MIT-IA and CBL are required post rig. GlsJLC 5/22/2020dts 5/22/2020