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HomeMy WebLinkAbout216-0992022-0615_No-Flow_TBU_K-10RD2_mh Page 1 of 1 MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO:Jim Regg DATE:6/15/2022 P. I. Supervisor FROM:Matt Herrera SUBJECT:No Flow Test Petroleum Inspector TBU K-10RD2 Hilcorp Alaska LLC PTD 2160990; Sundry 321-557 6/15/2022:I traveled to King Salmon Platform and met with Hilcorp representative Tom Buchholz and went over the rig up for the TBU K-10RD2 No-Flow Test. They had a 1-inch hose connection coming off the tree. Inline were a flow meter and pressure transmitter with a full port isolation valve to an open drum. All connections coming off the flow meter and pressure transmitter were the same OD. I confirmed all other contributing factors were addressed including injection support online, injection history verified, and flow path to drum. The ESP was shut down on 6/13/22 and the well opened to open drum and manned; SSV in closed position; all other valve alignments were confirmed. Test equipment: - Armor-Flo Low Flow Meter; Serial # 31650; calibration date 12/2021 - Crystal Pressure Transmitter; Serial # 1506240074; calibration date 9/6/2021 The following table shows test details: Time Pressures 1 Flow Rate2 Remarks (psi) Gas – scf/hr Liquid – gal/hr 09:15 0.02 / 0 / 25 0 0 Begin pressure build-up 09:30 0.09 / 0 / 25 09:45 0.11 / 0 / 25 10:00 0.11 / 0 / 25 10:15 0.11 / 0 / 25 130 0 Open to flow; 0 scf/hr in 5 min 10:20 0 / 0 / 25 0 0 Shut for pressure buildup 10:25 0.01 / 0 / 25 Pressure Build-Up Post Bleed. 10:40 0.07 / 0 / 25 10:55 0.07 / 0 / 25 11:10 0.07 / 0 / 25 11:25 0.08 / 0 / 25 <100 0 Open to flow; 0 scf/hr in 3 min 11:30 0 / 0 / 25 End test 1 Pressures are T/IA/OA 2 Gas flow not to exceed 900 scf/hr; Liquid flow not to exceed 6.3 gal/hr TBU K-10RD2 appears to meet the criteria for a no flow approval. Attachments: Test Instrument Calibration Records 9 9 9 9 9 9 9 9 9 James B. Regg Digitally signed by James B. 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ŚĂŶŐĞƌǁŝƚŚϭϬϱŬĐŽŶƚŝŶƵĞƚŽƉŝĐŬƵƉƐŚĞĂƌŝŶŐƉĂĐŬĞƌĂƚϭϱϬŬ͕ƉŝĐŬĞĚƵƉϮĨƚ͕͘ƉŝĐŬƵƉĂƚϭϭϵŬ͕ůĞƚƉĂĐŬĞƌƌĞůĂdžĨŝůůŚŽůĞ ǁŝƚŚϭϱďďůƐ͘WƵůůŚĂŶŐĞƌƚŽĨůŽŽƌ͕ĚĞĐŽŵƉůĞƚĞĐŽŶƚƌŽůůŝŶĞƐĂŶĚ^WĐĂďůĞ͕ƉƌĞƐƐƵƌĞƵƉǀĞŶƚůŝŶĞĂŶĚ^^^sĐŽŶƚƌŽůůŝŶĞƐ͕ ůĂLJŽƵƚŚĂŶŐĞƌ͘WŽŽŚǁŝƚŚ^WĂƐƐĞŵďůLJ͕ƌĂĐŬŝŶŐƚďŐďĂĐŬŝŶĚĞƌƌŝĐŬ͘ ĂŝůLJKƉĞƌĂƚŝŽŶƐ͗ ,ŝůĐŽƌƉůĂƐŬĂ͕>> tĞĞŬůLJKƉĞƌĂƚŝŽŶƐ^ƵŵŵĂƌLJ W/EƵŵďĞƌ tĞůůWĞƌŵŝƚEƵŵďĞƌtĞůůEĂŵĞ DZ&<ͲϭϬZϮ ϱϬͲϳϯϯͲϮϬϭϲϳͲϬϮͲϬϬ ϮϭϲͲϬϵϵ BOP test to 2500 psi per the 10-403. -WCB dĞƐƚĞĚKWƉĞƌ^ƵŶĚƌLJĂƐ ĨŽůůŽǁŝŶŐ͘ŶŶƵůĂƌϮϱϬͲϮϱϬϬƉƐŝ͕ZĂŵƐϮϱϬͲϮϱϬϬƉƐŝ͕sĂůǀĞƐϮϱϬͲϮϱϬϬƉƐŝ͕ĐŚĂƌƚĞĚϱŵŝŶƐ͕ ZŝŐ ^ƚĂƌƚĂƚĞ ŶĚĂƚĞ ,<ϰϬϰ ϭϬͬϯϭͬϮϭ ϭϮͬϲͬϮϭ ĂŝůLJKƉĞƌĂƚŝŽŶƐ͗ ,ŝůĐŽƌƉůĂƐŬĂ͕>> tĞĞŬůLJKƉĞƌĂƚŝŽŶƐ^ƵŵŵĂƌLJ W/EƵŵďĞƌ tĞůůWĞƌŵŝƚEƵŵďĞƌtĞůůEĂŵĞ DZ&<ͲϭϬZϮ ϱϬͲϳϯϯͲϮϬϭϲϳͲϬϮͲϬϬ ϮϭϲͲϬϵϵ ϭϮͬϬϯͬϮϬϮϭͲ&ƌŝĚĂLJ ϭϮͬϬϰͬϮϬϮϭͲ^ĂƚƵƌĚĂLJ DŽǀĞĚƐƚĂŝƌƐŽŶĐĂƌƌŝĞƌƚŽĚƌŝůůĞƌƐŝĚĞƚŽĐůĞĂƌƉĂƚŚĨŽƌƐƉŽŽůŝŶŐ^WĐĂďůĞ͘WKK,͕^ƚĂŶĚŝŶŐĂĐŬϰϭͬϮΗ^DdďŐĨͬϴ͕ϬϵϯΖ ƚͬϳ͕ϲϱϴΖ͕ƉƵůůĞĚĐĂďůĞĂŶĚĚƵĂůĨůĂƚƉĂĐŬƚŚƌƵƐŚĞĂǀĞƚŽƐƉŽŽůĞƌ͕>ͬĚ^^^s͕sĞŶƚWĂĐŬĞƌĂŶĚyEŶŝƉƉůĞ͕ƉƵŵƉĞĚϮϬϬďďůƐŽĨ &/tΛϯďƉŵĂƚƚĞŵƉƚŝŶŐƚŽĨŝůůŚŽůĞǁͬŶŽƐƵĐĐĞƐƐ͕ŽƌŝĞŶƚĂƚĞŶĞǁƐƵŵŵŝƚĐƌĞǁƚŚĂƚĂƌƌŝǀĞĚ͘WKK,ǁͬϰͲϭͬϮΗ^D^W ĐŽŵƉůĞƚŝŽŶĨͬϳ͕ϲϱϴΖ͕^ƚĂŶĚŝŶŐďĂĐŬƚďŐ͕ƌĞŵŽǀŝŶŐĐůĂŵƉƐĂŶĚƐƉŽŽůŝŶŐĐĂďůĞĐĂƉůŝŶĞ͕ĨŝůůŝŶŐďůĚŝƐƉůĂĐĞŵĞŶƚĞǀĞƌLJϭϬ ƐƚĂŶĚƐŽƵƚ͘ ZĞĞůƐǁĂƉΛϲ͕ϬϳϴΖ͘ƐĞƌǀŝĐĞƌŝŐ͘ŽŶƚŝŶƵĞƉŽŽŚǁŝƚŚ^WĂƐƐĞŵďůLJ͕ƌĂĐŬŝŶŐďĂĐŬϰͲϭͬϮƐƵƉĞƌŵĂdžŝŶĚĞƌƌŝĐŬ͕ĨͬϯϬϮϴĨƚ͘ƚŽ ϭϲϬĨƚ͘DĂŬĞƵƉƐĂĨĞƚLJũŽŝŶƚΘƌŝŐĚŽǁŶƚďŐƚŽŶŐƐ͘>ŽĂĚ^ƵŵŵŝƚƚŽŽůƐŽŶĨůŽŽƌΘŚĞůĚW:^DǁŝƚŚĐƌĞǁƐŽŶůĂLJŝŶŐĚŽǁŶ ƉƵŵƉƐ͘ŽƵďůĞĐŚĞĐŬƚĞŶƐŝŽŶƵŶĚĞƌƐƉůŝĐĞĐůĂŵƉ͕ĐƵƚŵŽƚŽƌůĞĂĚĂŶĚĐĂƉŝůůĂƌLJůŝŶĞƐĂďŽǀĞƐƉůŝĐĞĐůĂŵƉ͕ƌĞŵŽǀĞƐƉůŝĐĞ ĐůĂŵƉ͕ƉŝĐŬƵƉΘĚŝƐĐŽŶŶĞĐƚĚŝƐĐŚĂƌŐĞƉƌĞƐƐƵƌĞůŝŶĞ͕ƌŝŐƵƉĨĂůƐĞƚĂďůĞ͕DͬƵƉϲ͘ϳϱůŝĨƚŝŶŐĐůĂŵƉŽŶƉƵŵƉ͕>ͬĚƐĂĨĞƚLJũƚ͘ƚŽ ϭϮϯĨƚ͕ƌĞŵŽǀĞƚŽƉƉƵŵƉĐĂŶŽŶĐůĂŵƉ͕ĚŝƐĐŚĂƌŐĞƉƌĞƐƐƵƌĞůŝŶĞǁĂƐƉĂƌƚĞĚĂďŽƵƚϭϱĨƚ͘ĚŽǁŶΘƐĞĐŽŶĚƉƵŵƉĐůĂŵƉ ůŽŽƐĞ͘/ŶƐƚĂůůϮ^^ďĂŶĚƐĂƚƚŽƉŽĨƉƵŵƉƚŽŚŽůĚůĞĂĚĂŶĚĨůĂƚƉĂĐ͕ƉŝĐŬƵƉĂŶĚƌĞŵŽǀĞůŽŽƐĞĐůĂŵƉ͕ĚŝƐĐŚĂƌŐĞƉƌĞƐƐƵƌĞ ůŝŶĞǁĂƐƉĂƌƚĞĚŝŶƐŝĚĞĚĂŵĂŐĞϮŶĚĐůĂŵƉĂŶĚƐĞĐƵƌĞůŽŽƐĞůŝŶĞƐĂďŽǀĞϯƌĚĐůĂŵƉ͕ƌĞŵŽǀĞ^^ůĂŵƉƐĂƚƚŽƉŽĨƉƵŵƉ͕ ĂŶĚůĂLJŽƵƚƐĞĐƚŝŽŶηϭ͘ŽŶƚŝŶƵĞƚŽůĂLJ^WĂƐƐĞŵďůLJƐĞĐŽŶĚƉƵŵƉŚĂĚϭͬϮŚŽůĞŝŶƉƵŵƉŚŽƵƐŝŶŐϭϬĨƚ͘ĨƌŽŵďŽƚƚŽŵĂŶĚ ŚĞŵŝĐĂůŝŶũĞĐƚŝŽŶŵĂŶĚƌĞůƐǁĂƐĐŽƌƌŽĚĞĚĂƚĞŶĚŽĨĐĞŶƚƌĂůŝnjĞƌŚĂĚĨƵůůƌĞĐŽǀĞƌLJŽĨĂůůƉƵŵƉĂƐƐĞŵďůLJΘĐůĂŵƉƐ͘ƌĞĂŬ ĚŽǁŶƐĂĨĞƚLJũƚ͘ĐůĞĂŶƵƉĨůŽŽƌ͕ƌĞŵŽǀĞƐƵŵŵŝƚƐŚĞĂǀĞƐĨƌŽŵĚĞƌƌŝĐŬ͕ĂƌƌĂŶŐĞƐƉŽŽůƐŽŶĚĞĐŬ͕ĐůĞĂƌĚĞĐŬƐ͘ ƌƌĂŶŐĞĚĚĞĐŬĂŶĚƐƉŽƚƚĞĚ^>hŶŝƚ͕ĨŝůůŝŶŐŚŽůĞϭϱďƉŚǁͬ&/t͘WŽůůĂƌĚĐƌĞǁĂƌƌŝǀĞĚĂŶĚŽďƚĂŝŶĞĚƉĞƌŵŝƚ͕ZͬƵ^>͕DͬƵϯΗ ƌŝǀĞŽǁŶĂŝůĞƌ͕Z/,ƚĂŐΛϭϮ͕ϬϯϱΖ^>D;,<ͲϮͿǁŽƌŬĞĚďĂŝůĞƌ͕WKK,͕ƌĞĐŽǀĞƌĞĚƐĂŵƉůĞŽĨĐŚƵŶŬLJƐŽůŝĚƐ͘EŽƌĞĂĐƚŝŽŶ ŵŝdžŝŶŐƐĂŵƉůĞǁŝƚŚƐĂĨĞĂĐŝĚ͘^ĞŶƚƐĂŵƉůĞƚŽDŝŬĞWŝŶŐ͘ZDK^>ƵŶŝƚ͕ĂƌƌĂŶŐĞĚĚĞĐŬĂŶĚŚŽƵƐĞŬĞĞƉŝŶŐǁŚŝůĞtKK͕ ƌĞĐĞŝǀĞĚŽƌĚĞƌƐƚŽƌƵŶĐŽŵƉůĞƚŝŽŶ͘ZͬƵŚĂŶĚůŝŶŐƚŽŽůƐĂŶĚ^ƵŵŵŝƚĞƋ͘,ƵŶŐƐŚĞĂǀĞƐ͕^ƉŽƚĐĂďůĞĂŶĚĨůĂƚƉĂĐŬƐƉŽŽůĞƌƐ͕ ǁŽƌŬĞĚďŽĂƚŽĨĨůŽĂĚĞĚĞƐƉƌƵŶŶŝŶŐĞƋ͘WͬƵ^WĂƐƐĞŵďůLJ͕ƌƵŶŶŝŶŐŵŽƚŽƌůĞĂĚĂŶĚĂƉŝůůĂƌLJůŝŶĞƐƚŚƌƵƐŚĞĂǀĞƐ͕ƉŝĐŬƵƉ ϱϲϮƐĞƌŝĞƐŵŽƚŽƌǁŝƚŚĞŶƚƌĂůŝnjĞƌĂŶŽĚĞ͕ŵͬƵƉĚŝƐĐŚĂƌŐĞƉƌĞƐƐƵƌĞůŝŶĞ͕ĐĂƉŝůůĂƌLJůŝŶĞĂƚĂŶŽĚĞ͕ƐĞƌǀŝĐĞŵŽƚŽƌ͕ŝŶƐƚĂůůŝŶŐ ĐůĂŵƉƐŽŶŵŽƚŽƌ͕ƚŝĞŝŶŵŽƚŽƌůĞĂĚ͕ŵĞŐƚĞƐƚŵŽƚŽƌůĞĂĚ;'ŽŽĚͿ͕ƐĞƌǀŝĐĞƵƉƉĞƌΘůŽǁĞƌƐĞĂůƐ͕ĂŶĚƉƵŵƉηϭ͕ŝŶƐƚĂůů ĐůĂŵƉƐĂƐƉĞƌĚĞƚĂŝů͕ŵĂŬĞƵƉŝŶƚĂŬĞƐƵďĂƐƐĞŵďůLJ͘ƚƚĞŵƉƚƚŽŝŶƐƚĂůůĐůĂŵƉŽŶƉƵŵƉ͕ŚĂĚĂƐŝŶŐůĞĐŚĂŶŶĞůĐůĂŵƉηϱϯϴ͕ ŵŽƚŽƌůĞĂĚǁĂƐůŽŽƐĞŝŶĐůĂŵƉĂŶĚŚĂĚĂϯͬϴŐĂƉŽŶƐŝĚĞŽĨƉƵŵƉĂĨƚĞƌŝŶƐƚĂůůŝŶŐĐůĂŵƉ͕ƌĞŵŽǀĞƐŝŶŐůĞĐůĂŵƉĂŶĚŝŶƐƚĂůů ĂϮͲĐŚĂŶŶĞůĐůĂŵƉηϱϯϴƚŚĞŵŽƚŽƌůĞĂĚĨŝƚƐŶƵŐ͕ǁŝƚŚŶŽŐĂƉŽŶƐŝĚĞĂĨƚĞƌŝŶƐƚĂůůŝŶŐĐůĂŵƉ͕ĐĂůůƐƵŵŵŝƚƚŽƐĞŶĚŽƵƚŵŽƌĞ ϮĐŚĂŶŶĞůĐůĂŵƉƐ͕ŶĞĞĚĞĚϭϱĨŽƌƚŚĞƉƵŵƉƐ͕ĐůĂŵƉĂƌƌŝǀĞĚŽŶDͬsdŝƚĂŶĂƚϬϰϬϬŚƌƐ͘ŽĨĨůŽĂĚĐůĂŵƉƐ͘ŽŶƚŝŶƵĞƉŝĐŬƵƉ ^WƐƐĞŵďůLJ͘ ƌŝǀĞŽǁŶĂŝůĞƌ͕Z/,ƚĂŐΛϭϮ͕ϬϯϱΖ^>D;,<ͲϮͿǁŽƌŬĞĚďĂŝůĞƌ͕WKK,͕ƌĞĐŽǀĞƌĞĚƐĂŵƉůĞŽĨĐŚƵŶŬLJƐŽůŝĚƐ͘ ŽŶƚŝŶƵĞƉŽŽŚǁŝƚŚ^WĂƐƐĞŵďůLJ͕ƌĂĐŬŝŶŐďĂĐŬϰͲϭͬϮƐƵƉĞƌŵĂdžŝŶĚĞƌƌŝĐŬ͕ĨͬϯϬϮϴĨƚ͘ƚŽ ϭϲϬĨƚ͘ The contingent FCO wasn't done, despite SL tagging high, @12,035' (deepest perfs @12,954'). -WCB ŽŶƚŝŶƵĞƚŽůĂLJ^WĂƐƐĞŵďůLJƐĞĐŽŶĚƉƵŵƉŚĂĚϭͬϮŚŽůĞŝŶƉƵŵƉŚŽƵƐŝŶŐϭϬĨƚ͘ĨƌŽŵďŽƚƚŽŵĂŶĚ ŚĞŵŝĐĂůŝŶũĞĐƚŝŽŶŵĂŶĚƌĞůƐǁĂƐĐŽƌƌŽĚĞĚĂƚĞŶĚŽĨĐĞŶƚƌĂůŝnjĞƌ ŚĂĚĨƵůůƌĞĐŽǀĞƌLJŽĨĂůůƉƵŵƉĂƐƐĞŵďůLJΘĐůĂŵƉƐ͘ WKK,ǁͬϰͲϭͬϮΗ^D^W ĐŽŵƉůĞƚŝŽŶĨͬϳ͕ϲϱϴΖ͕^ƚĂŶĚŝŶŐďĂĐŬƚďŐ͕ƌĞŵŽǀŝŶŐĐůĂŵƉƐĂŶĚƐƉŽŽůŝŶŐĐĂďůĞĐĂƉůŝŶĞ͕Ĩ ƌĞĐĞŝǀĞĚŽƌĚĞƌƐƚŽƌƵŶĐŽŵƉůĞƚŝŽŶ͘ ZŝŐ ^ƚĂƌƚĂƚĞ ŶĚĂƚĞ ,<ϰϬϰ ϭϬͬϯϭͬϮϭ ϭϮͬϲͬϮϭ ĂŝůLJKƉĞƌĂƚŝŽŶƐ͗ ,ŝůĐŽƌƉůĂƐŬĂ͕>> tĞĞŬůLJKƉĞƌĂƚŝŽŶƐ^ƵŵŵĂƌLJ W/EƵŵďĞƌ tĞůůWĞƌŵŝƚEƵŵďĞƌtĞůůEĂŵĞ DZ&<ͲϭϬZϮ ϱϬͲϳϯϯͲϮϬϭϲϳͲϬϮͲϬϬ ϮϭϲͲϬϵϵ ϭϮͬϬϳͬϮϬϮϭͲdƵĞƐĚĂLJ EŽĂĐƚŝǀŝƚLJƚŽƌĞƉŽƌƚ͘ ϭϮͬϬϲͬϮϬϮϭͲDŽŶĚĂLJ ŽŶƚŝŶƵĞd/,ǁͬ^WŽŶϰͲϭͬϮΗϭϮ͘ϲƉƉĨ>ͲϴϬ^ƵƉĞƌŵĂdžĨͬϲ͕ϬϲϱΖ͕ƚĞƐƚŝŶŐĐĂďůĞĞǀĞƌLJϭϬϬϬΖ͕ĐůĂŵƉŝŶŐĐĂďůĞĂŶĚĚƵĂůĨůĂƚ ƉĂĐŬĞǀĞƌLJŽƚŚĞƌũŽŝŶƚ͘&ŝůůŝŶŐŚŽůĞϭϬďƉŚǁͬ&/t͘ <ŝĐŬĞĚŽƵƚĂŶĚƌĞƉůĂĐĞĚϭϬũŽŝŶƚƚŚĂƚĚŝĚŶΖƚĚƌŝĨƚ͘WͬƵ>ĂŶĚŝŶŐũƚĂŶĚ,ĂŶŐĞƌ͕ŽƌŝĞŶƚĂƚĞŚĂŶŐĞƌ͘,ƵŶŐƚĂƌƉƐƚŽŬĞĞƉǁŽƌŬ ĂƌĞĂĚƌLJ͘ĂďůĞĐŬŐŽŽĚ͕DĞĂƐƵƌĞĚĂŶĚĐƵƚĐĂďůĞĂŶĚĚƵĂůĨůĂƚƉĂĐŬ͕ŵĂĚĞĐĂďůĞƐƉůŝĐĞƚŽƉĞŶĞƚƌĂƚŽƌƐĞĐƵƌĞĚƚŽŚĂŶŐĞƌ͕ ƐƚƌŝƉƉĞĚĚƵĂůĐĂƉůŝŶĞƐŝŶƐƚĂůůĐŚĞĐŬǀĂůǀĞƐĂŶĚƐĞĐƵƌĞĚƚŽŚĂŶŐĞƌ͘WůƵŐŽĨĨƌĞŵĂŝŶŝŶŐƉŽƌƚƐŝŶŚĂŶŐĞƌ͘ĂďůĞƚĞƐƚŐŽŽĚ͘ ŽŶŶĞĐƚƵŵďŝůŝĐĂůĐŽƌĚ͕>ĂŶĚĞĚĐŽŵƉůĞƚŝŽŶǁͬϱϵŬĚŶŽŶŚĂŶŐĞƌ͕ĐŚĞĐŬƌĞĂĚŝŶŐŽŶĐĂďůĞ;ŐŽŽĚͿ͘Z/>^͕>ͬůĂŶĚŝŶŐũƚ ĂŶĚƐĞƚWs͘ ϮϱϲũƚƉůƵƐ^WůĂŶĚŝŶŐĞŶĚŽĨĂƐƐĞŵďůLJΛϴ͕ϬϵϴΖ͘ZƐƵŵŵŝƚĞƋ͘>ĂLJĚŽǁŶϱƐƚĚƐŽƵƚŽĨĚĞƌƌŝĐŬ͘>ŽĂĚŽƵƚƚŽŽůƐĨƌŽŵƌŝŐ ĨůŽŽƌ͕ƌĞŵŽǀĞǁŝŶĚǁĂůůƐ͕ƌŝŐĚŽǁŶĞĂǀĞƌƐůŝĚĞ͕ƐƚĂŝƌƐ,ůĂŶĚŝŶŐͬĚƌŝůůĚĞĐŬ͕ƐƚĂŝƌƐŽŶĐĂƌƌŝĞƌůĂŶĚŝŶŐ͕ĂŶĚƌŝŐĨůŽŽƌ͕ ƌĞŵŽǀĞĞůĞǀĂƚŽƌƐ͕ΘďĂŝůƐ͕ƌŝŐĚŽǁŶĨůŽŽƌ͘W:^DƐĐŽƉĞŵĂƐƚĚŽǁŶƚŽϭͬϮŵĂƐƚ͕ĐŚĂŝŶŽĨĨďůŽĐŬƐ͕ƐĞĐƵƌĞůŝŶĞƐ͕ĚŝƐĞŶŐĂŐĞ ĚĂǁŐƐŝŶůŽǁĞƌƐĞĐƚŝŽŶ͕ůŽǁĞƌŵĂƐƚŽŶƚŽŚĞĂĚĂĐŚĞƌĂĐŬ͘EŝƉƉůĞĚŽǁŶKWΖƐ͕ĐŚŽŬĞΘŬŝůůůŝŶĞƐΘĐŝƌĐƵůĂƚŝŶŐĞƋƵŝƉŵĞŶƚ͘ KĨĨůŽĂĚǁŽƌŬďŽĂƚĂŶĚďĂĐŬůŽĂĚĞƋƵŝƉŵĞŶƚ͘ŽŶƚŝŶƵĞƚŽŶŝƉƉůĞĚŽǁŶKW^͘ŝŶƐƚĂůůŶŝƉƉůĞƵƉt<DͲDϰͲϭͬϭϲϱŵƚƌĞĞdž ĂĚĂƉƚĞƌ͕KdͲϱͲ^W͕ϭϯͲϱͬϴϱŵW/ŚƵďdžϰͲϭͬϭϲϱŵ^ƚƵĚĚƚŽƉ͕ǁŝƚŚϮͲϭͬϮΗĐŽŶƚƌŽůůŝŶĞĞdžŝƚƐ͕ƉƌĞƉƉĞĚǁŝƚŚKdϰϬϬͲϰ ƉŽĐŬĞƚ͕ŚŽŽŬƵƉĨůŽǁůŝŶĞƐĂŶĚƚĞƐƚǀŽŝĚƚŽϱϬϬϬƉƐŝ͕ƚĞƐƚŝŶŐƚƌĞĞƚŽϯϬϬůŽǁΘϱϬϬϬƉƐŝŚŝ͘ZŝŐĚŽǁŶƚĞƐƚĞƋƵŝƉŵĞŶƚdƵƌŶ ǁĞůůŽǀĞƌƚŽƉƌŽĚƵĐƚŝŽŶΘůĞĂŶƵƉǁĞůůďĂLJ͘ ϭϮͬϬϱͬϮϬϮϭͲ^ƵŶĚĂLJ &ŝŶŝƐŚĂƐƐĞŵďůLJĂŶĚƐĞƌǀŝĐŝŶŐ^W͕ĨŝŶĂůƐƵƌĨĂĐĞĐŚĞĐŬƐŐŽŽĚ͘d/,ǁͬ^WŽŶϰͲϭͬϮΗϭϮ͘ϲƉƉĨ>ͲϴϬ^ƵƉĞƌŵĂdžĨͬϭϰϴΖ͕ƚĞƐƚŝŶŐ ĐĂďůĞĞǀĞƌLJϭϬϬϬΖ͕ĐůĂŵƉŝŶŐĐĂďůĞĂŶĚĚƵĂůĨůĂƚƉĂĐŬƚŚĞĨŝƌƐƚϲũŽŝŶƚƐĂŶĚĞǀĞƌLJŽƚŚĞƌŽŶĞƚŚĞƌĞĂĨƚĞƌ͘&ŝůůŝŶŐŚŽůĞϭϬďƉŚ ǁͬ&/t͘ƚŽϯϳϴϲĨƚ͘^ĞƌǀŝĐĞĂŶĚůƵďƌŝĐĂƚĞƌŝŐ͘d/,ǁͬ^WŽŶϰͲϭͬϮΗϭϮ͘ϲƉƉĨ>ͲϴϬ^ƵƉĞƌŵĂdž͕ƚĞƐƚŝŶŐĐĂďůĞĞǀĞƌLJϭϬϬϬΖ͕ ĐůĂŵƉŝŶŐĐĂďůĞĂŶĚĚƵĂůĨůĂƚƉĂĐŬƚŚĞĨŝƌƐƚϲũŽŝŶƚƐĂŶĚĞǀĞƌLJŽƚŚĞƌŽŶĞƚŚĞƌĞĂĨƚĞƌ͘&ŝůůŝŶŐŚŽůĞϭϬďƉŚǁͬ&/t͘&ͬϯ͕ϳϴϲĨƚ͘ ƚŽϲ͕ϬϲϱĨƚ͘ŚĂŶŐĞŽƵƚŵŽƚŽƌůĞĂĚƐƉŽŽůƐĂŶĚŵĂŬĞƐƉůŝĐĞŝŶŵŽƚŽƌĐĂďůĞΘƚĞƐƚĐĂďůĞƐĂŵĞ;ŐŽŽĚƚĞƐƚͿ͘d/,ǁͬ^WŽŶϰͲ ϭͬϮΗϭϮ͘ϲƉƉĨ>ͲϴϬ^ƵƉĞƌŵĂdž͕ƚĞƐƚŝŶŐĐĂďůĞĞǀĞƌLJϭϬϬϬΖ͕ĐůĂŵƉŝŶŐĐĂďůĞĂŶĚĚƵĂůĨůĂƚƉĂĐŬƚŚĞĨŝƌƐƚϲũŽŝŶƚƐĂŶĚĞǀĞƌLJ ŽƚŚĞƌŽŶĞƚŚĞƌĞĂĨƚĞƌ͘&ŝůůŝŶŐŚŽůĞϭϬďƉŚǁͬ&/t͘&ͬϲ͕ϬϲϱĨƚ͘ƚŽϲ͕ϲϴϴĨƚ͘ d/,ǁͬ^WŽŶϰͲϭͬϮΗ >ĂŶĚĞĚĐŽŵƉůĞƚŝŽŶǁͬϱϵŬĚŶŽŶŚĂŶŐĞƌ͕>ͬůĂŶĚŝŶŐũƚ ĂŶĚƐĞƚWs͘ ƚdƵƌŶ ǁĞůůŽǀĞƌƚŽƉƌŽĚƵĐƚŝŽŶΘ ϮϱϲũƚƉůƵƐ^WůĂŶĚŝŶŐĞŶĚŽĨĂƐƐĞŵďůLJΛϴ͕ϬϵϴΖ͘ -5HJJ -5HJJ 2021-1223_No-Flow_TBU_K-10RD2_ae.docx Page 1 of 2 MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO:Jim Regg DATE:December 26, 2021 P. I. Supervisor FROM:Adam Earl SUBJECT:No Flow Test Petroleum Inspector TBU K-10RD2 Hilcorp Alaska LLC PTD 2160990 12-23-2021:I traveled out to King Salmon Platform to witness a No-Flow Test on well K-10RD2. Jon Loomis was the Hilcorp representative for the test.The well was rigged up with 1-inch bleed lines to an ERDCO Armor-Flo meter, then out to a deck tank. The tubing and IA were tied together at surface; the well is a packerless electrical submersible pump completion. I verified current calibrations on the flow meter and pressure gauge. The following table shows test details: Time Pressures 1 Flow Rate2 Remarks (psi) Gas – scf/hr Liquid – gal/hr 13:45 0/0/5 Shut in well to conduct no-flow test 14:00 0.07/0.07/5 14:15 0.12/0.12/5 14:30 0.19/.19/5 14:45 0.24/0.24/5 800 0 Bleed well 5 min; gas rate decreased to 100 scf/h; pressure to 0.04 psi 14:50 0.04/0.04/5 Shut in well 15:05 0.13/0.13/5 15:20 0.21/0.21/5 15:35 0.27/0.27/5 15:50 0.33/0.33/5 875 0 Bleed well 5 min; gas rate decreased to 250 scf/h; pressure to 0.05 psi 15:55 0.05/0.05/5 Shut in well 16:40 0.31/0.31/5 16:55 0.38/0.38/5 925 0 Bleed well 5 min; gas rate decreased to 275 scf/h; pressure to 0.06 psi 1 Pressures are T/IA/OA 2 Gas flow not to exceed 900 scf/hr; Liquid flow not to exceed 6.3 gal/hr After conducting the 3-hour test, bleeding on the hour three consecutive times, the well seemed to meet the passing criteria. There was no liquid to surface. Attachments:Pressure Gauge and Flow Meter Calibration Certificates James B. Regg Digitally signed by James B. Regg Date: 2021.12.29 13:32:33 -09'00' 2021-1223_No-Flow_TBU_K-10RD2_ae.docxPage 2 of 2No-Flow Test – TBU K-10RD2 (PTD 2160990)Photos by AOGCC Inspector A. Earl12/23/2021 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing 2.Operator Name:4.Current Well Class:5.Permit to Drill Number: Exploratory Development 3. Address:Stratigraphic Service 6. API Number: 7. If perforating:8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9.Property Designation (Lease Number):10.Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 13,233'N/A Casing Collapse Structural Conductor Surface 1,540psi Intermediate Production 5,300psi Liner 4,790psi Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13.Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14.Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16.Verbal Approval:Date:GAS WAG GSTOR SPLUG AOGCC Representative: GINJ Op Shutdown Abandoned Contact Name: Katherine O'Connor Contact Email: Contact Phone: Authorized Title: Conditions of approval: Notify AOGCC so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by:COMMISSIONER THE AOGCC Date: Comm.Comm.Sr Pet Eng Sr Pet Geo Sr Res Eng PRESENT WELL CONDITION SUMMARY 9,731'13,065'9,700'2,376 N/A 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name and Digital Signature with Date: AOGCC USE ONLY Dan Marlowe, Operations Manager Katherine.oconnor@hilcorp.com (907) 777-8376 6,890psi Tubing Grade: Tubing MD (ft):Perforation Depth TVD (ft): Tubing Size: D&L ESP Pkr w/ Vent & BTE-5 SSSV 404 (MD) 404 (TVD) & 383 (MD) 383 (TVD) 11,922 - 12,954 9,191 - 9,679 11/17/2021 4-1/2" 9,724' STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ADL0017594 / ADL0018777 216-099 50-733-20167-02-00 Trading Bay Unit K-10RD2 McArthur River Field / Hemlock Oil & Middle Kenai Gas Pool N/A 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99516 Hilcorp Alaska, LLC Other: Replace ESP Length Size 12.6# / L-80 TVD Burst 7,698' 9,440psi MD 3,090psi 384' 3,913' 384' 4,998' 6,193'9-5/8" 24" 13-3/8" 384' 4,998' 8,445' Perforation Depth MD (ft): 8,445' 7-5/8"13,190'5,043' ry Statu Form 10-403 Revised 10/2021 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 10:06 am, Oct 26, 2021 321-557 Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267), ou=Users Date: 2021.10.26 08:57:22 -08'00' Dan Marlowe (1267) DSR-10/26/21 DLB 10/26/2021 BOP test to 2500 psi. X X BJM 11/1/21 10-404  dts 11/1/2021 JLC 11/1/2021 Jeremy Price Digitally signed by Jeremy Price Date: 2021.11.01 18:02:41 -08'00' RBDMS HEW 11/3/2021 Well Work Prognosis Well: K-10rd2 Well Name:K-10rd2 API Number: 50-733-20167-02-00 Current Status:ESP Producer Leg:Leg #4 (NW corner) Estimated Start Date:November 17, 2021 Rig:HAK 404 Reg. Approval Req’d?403 Date Reg. Approval Rec’vd: Regulatory Contact:Juanita Lovett (8332)Permit to Drill Number:216-099 First Call Engineer:Katherine O’Connor (907) 777-8376 (O) (214) 684-7400 (M) Second Call Engineer:Karson Kozub (907) 570-1801 (M) Current Bottom Hole Pressure:2,318 psi @ 5,959’ TVD 0.389 lbs/ft (7.5 ppg) based on ESP Gauge (7/25/2017) Maximum Expected BHP:2,318 psi @ 5,959’ TVD 0.389 lbs/ft (7.5 ppg) based on ESP Gauge (7/25/2017) Maximum Potential Surface Pressure: 2,376 psi Using 0.1 psi/ft gradient 20 AAC 25.280(b)(4) Brief Well Summary K-10rd2 is a Hemlock only producer completed with an ESP that failed January 30, 2021. This workover will replace the failed pump. Last Casing Test: 11/20/16 to 2,650 psi at 13,233’ charted for 30 minutes. Procedure: 1. MIRU HAK 404 2. Circulate well to production x Work over fluid will be FIW 3. Set BPV, ND tree NU BOP and test to 250psi Low/2,500psi High/2,500 psi Annular x Note: Notify AOGCC 24 hours in advance of test to allow them to witness test 4. Monitor well to ensure it is static 5. Unseat hanger and POOH with ESP completion 6. RU SL RIH and tag fill 7. * Contingent cleanout if fill is tagged high a. RIH with clean out assembly, circulate bottoms up, POOH b. * BOP’s will be closed as needed to circulate the well 8. PU and RIH with new ESP assembly. See proposed schematic 9. Set BPV, ND BOP, NU tree and test 10. Turn well over to production 11. Conduct SVS tests per AOGCC regulations 12. Conduct a no-flow per AOGCC regulations Attachments: 1. Well Schematic Current 2. Well Schematic Proposed 3. Wellhead Schematic Current/Proposed 4. BOP Drawing 5. Fluid Flow Diagrams 6. Rolling BOP Test procedures 7. RWO Sundry Revision Change Form A 3-1/2" workstring will be used for FCO per Hilcorp, R. Rupert email. bjm Updated By: JLL 07/31/17 SCHEMATIC McArthur River Field Well: K-10RD2 API #: 50-733-20167-02 PTD: 216-099 Last Completed: 07/24/2017 CASING DETAIL SIZE WT GRADE CONN ID TOP BTM. 24" 186 X-56 Weld Surface 384' 13-3/8” 61 K-55 BTC 12.515” Surface 2,500’ 13-3/8” 68 K-55 BTC 12.415” 2,500’ 4,998’ 9-5/8" 47 P110 BTC 8.681” Surface 8,445' TOW 7-5/8" 29.7 L-80 Hydril 511 6.875” 8,147’ 13,190’ TUBING DETAIL 4-1/2” 12.6 L-80 Supermax 3.958” Surface 7,968’ Liner Hanger 8,147’ Min ID 6.670” TD = 13,233’ PBTD = 13,065’ Max Hole Angle = 80q RKB to Sea Level (MSL) = 122’ KB 48.5’ 1 TOC 10,253’ 24” 2 3 5 4 HK-1 HK-2 HK-3 HK-4 HK-5 HK-6 13-3/8” 8-1/2” TOW 8,445’ X JEWELRY DETAIL No Depth MD Depth TVD ID OD Item 1 48.5’ 48.5’ 3.958” 13.625” FMC 13-5/8” x 4-1/2” ESP Tbg Hanger 2 383’ 383’ 3.813” 6.908” SSSV – Superior BTE-5 3 404’ 404’ 3.930” 8.312” D&L Oil Tools Twin Seal ESP Packer w/ WFT vent valve 4 428’ 428’ 3.813” 5.570” XN nipple 3.813 w/ 3.725 No-Go 5 7,968’ 5,878’ - 6.750” Discharge, Bolt-On 7,969’ 5,879’ - 6.750” Pumps – Summit SH16000 – 2x 45 stage 8,009’ 5,904’ - 5.130” Seals – Summit Tandem BPBSL 8,027’ 5,916’ - 5.620” Motors – Summit 500HP tandem (1000HP/3600V/165.5A) 8,093’ 5,959’ - 5.620” Gauge (Zenith) / Centralizer / Anode PERFORATION DETAIL Zone Top MD Btm MD Top TVD BTM TVD FT SPF Date Status HK-1 11,922’ 11,971’ 9,191’ 9,228’ 49’ 5 11/25/2016 Open HK-1 11,980’ 11,985’ 9,235’ 9,239’ 5’ 5 11/25/2016 Open HK-1 11,993’ 11,998’ 9,245’ 9,249’ 5’ 5 11/25/2016 Open HK-2 12,008’ 12,033’ 9,257’ 9,273 25’ 5 11/25/2016 Open HK-2 12,041’ 12,121’ 9,279’ 9,334’ 80’ 5 11/25/2016 Open HK-3 12,151’ 12,394’ 9,350’ 9,487’ 243’ 5 11/25/2016 Open HK-4 12,425’ 12,522’ 9,503’ 9,544’ 97’ 5 11/25/2016 Open HK-5 12,565’ 12,780’ 9,562’ 9,650’ 215’ 5 11/25/2016 Open HK-6 12,854’ 12,954’ 9,651’ 9,679’ 100’ 5 11/25/2016 Open -00 DLB Updated By: JLL 10/25/21 PROPOSED McArthur River Field Well: K-10RD2 API #: 50-733-20167-02 PTD: 216-099 Last Completed: FUTURE CASING DETAIL SIZE WT GRADE CONN ID TOP BTM. 24" 186 X-56 Weld Surface 384' 13-3/8” 61 K-55 BTC 12.515” Surface 2,500’ 13-3/8” 68 K-55 BTC 12.415” 2,500’ 4,998’ 9-5/8" 47 P110 BTC 8.681” Surface 8,445' TOW 7-5/8" 29.7 L-80 Hydril 511 6.875” 8,147’ 13,190’ TUBING DETAIL 4-1/2” Surface ±7,968’ Liner Hanger 8,147’ Min ID 6.670” TOC 8235’ Calculated TD = 13,233’ PBTD = 13,065’ Max Hole Angle = 80q RKB to Sea Level (MSL) = 122’ KB 48.5’ 1 TOC 10,253’ 24” 2 HK-1 HK-2 HK-3 HK-4 HK-5 HK-6 13-3/8” 8-1/2” TOW 8,445’ JEWELRY DETAIL No Depth MD Depth TVD ID OD Item 1 48.5’ 48.5’ 3.958” 13.625” FMC 13-5/8” x 4-1/2” ESP Tbg Hanger 2 ±7,968’ ±5,878’ - - Discharge, Bolt-On Pumps Seals Motors ±8,093’ ±5,959’ - - Gauge (Zenith) / Centralizer / Anode PERFORATION DETAIL Zone Top MD Btm MD Top TVD BTM TVD FT SPF Date Status HK-1 11,922’ 11,971’ 9,191’ 9,228’ 49’ 5 11/25/2016 Open HK-1 11,980’ 11,985’ 9,235’ 9,239’ 5’ 5 11/25/2016 Open HK-1 11,993’ 11,998’ 9,245’ 9,249’ 5’ 5 11/25/2016 Open HK-2 12,008’ 12,033’ 9,257’ 9,273 25’ 5 11/25/2016 Open HK-2 12,041’ 12,121’ 9,279’ 9,334’ 80’ 5 11/25/2016 Open HK-3 12,151’ 12,394’ 9,350’ 9,487’ 243’ 5 11/25/2016 Open HK-4 12,425’ 12,522’ 9,503’ 9,544’ 97’ 5 11/25/2016 Open HK-5 12,565’ 12,780’ 9,562’ 9,650’ 215’ 5 11/25/2016 Open HK-6 12,854’ 12,954’ 9,651’ 9,679’ 100’ 5 11/25/2016 Open -00 DLB King Salmon Platform K-10RD2 King Salmon Platform BOP Stack HILCORP ALASKA, LLC SwacoSuperchokeBlooey LineTo Gas BusterInlet STATE OF ALASKA 'RECEIVED Alt OIL AND GAS CONSERVATION COMWION 31 1 REPORT OF SUNDRY WELL OPERATIONS JUL20 7 s ik 1.Operations Abandon 0 Plug Perforations 0 Fracture Stimulate ❑ Pull Tubing❑ o w. s ;own ❑ Performed: Suspend ❑ Perforate ❑ Other Stimulate 0 Alter Casing 0 Change Approved Program ❑ Plug for Redrill 0 Perforate New Pool ❑ Repair Well 0 Re-enter Susp Well 0 Other:Replace ESP CI 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska, LLC Development 0 Exploratory 0 216-099 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic ❑ Service ❑ 6.API Number: Anchorage,AK 99503 50-733-20167-02-00 7.Property Designation(Lease Number): 8.Well Name and Number: ADL017594/ADL018777 Trading Bay Unit K-10RD2 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A McArthur River Field/Hemlock Oil Pool 11.Present Well Condition Summary: Total Depth measured 13,233 feet Plugs measured N/A feet true vertical 9,730 feet Junk measured N/A feet Effective Depth measured 13,065 feet Packer measured 404 feet true vertical 9,700 feet true vertical 404 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 384' 24" 384' 394' Surface 4,998' 13-3/8" 4,998' 3,913' 3,090 psi 1,540 psi Intermediate Production 8,445' 9-5/8" 8,445' 6,193' 9,440 psi 5,300 psi Liner 5,043' 7-5/8" 13,190' 9,724' 6,8901psi 4,790 psi Perforation depth Measured depth 11,922-12,954 feet S�Np�ED U GU 17, True Vertical depth 9,191 -9,679 feet 0�� Tubing(size,grade,measured and true vertical depth) 4-1/2" 12.6#/L-80 7,968(MD) 5,878(TVD) D&L Oil Tools 404(MD) 383(MD) Packers and SSSV(type,measured and true vertical depth) ESP Pkr wNent 404(TVD) BTE-5 SSSV 383(TVD) 12.Stimulation or cement squeeze summary: Intervals treated(measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 125 115 5108 59 57 Subsequent to operation: 139 195 8147 99 99 14.Attachments(required per 20 AAC 25.070,25.071,&25.283) 15.Well Class after work: Daily Report of Well Operations 0 Exploratory ❑ DevelopmentO Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16.Well Status after work: Oil 0 Gas ❑ WDSPL❑ Printed and Electronic Fracture Stimulation Data 0 GSTOR 0 WINJ ❑ WAG ❑ GINJ❑ 3USP❑ SPLUG❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: 317-191 Authorized Name: Stan W.Golis Contact Name: Dan Marlowe Authorized Title: Operations Manager / Contact Email: dmarlowe@hilcorp.com Authorized Signature: 3(.... . 314i:. Date: 1f V 11 Contact Phone: (907)283-1329 17 RBDMS t LV AUG - 1 2017 Form 10-404 Revised 4/2017 0 ittR ,7 Submit Original Only H . • McArthur River Field Well: K-10RD2 SCHEMATIC API #: 50-733-20167-02 Hilcorp Alaska,LL( PTD: 216-099 Last Completed: 07/24/2017 RKB to Sea Level(MSL)=122' KB 48.5' CASING DETAIL :.:41 1 ,."A SIZE WT GRADE CONN ID TOP BTM. ';"� 2 '' 24" 186 X-56 Weld Surface 384' 24.. 3 y 13-3/8" 61 K-55 BTC 12.515" Surface 2,500' 4 13-3/8" 68 K-55 BTC 12.415" 2,500' 4,998' 9-5/8" 47 P110 BTC 8.681" Surface 8,445'TOW 7-5/8" 29.7 L-80 Hydril 511 6.875" 8,147' 13,190' TUBING DETAIL 4-1/2" 12.6 L-80 Supermax 3.958" Surface 7,968' JEWELRY DETAIL 13-3/8"L No Depth Depth ID OD Item MD ND 1 48.5' 48.5' 3.958" 13.625" FMC 13-5/8"x 4-1/2"ESP Tbg Hanger 2 383' 383' 3.813" 6.908" SSSV-Superior BTE-5 3 404' 404' 3.930" 8.312" D&L Oil Tools Twin Seal ESP Packer w/WFT vent valve 4 428' 428' 3.813" 5.570" XN nipple 3.813 w/3.725 No-Go 7,968' 5,878' - 6.750" Discharge,Bolt-On 7,969' 5,879' - 6.750" Pumps-Summit SH16000-2x 45 stage 5 8,009' 5,904' - 5.130" Seals-Summit Tandem BPBSL 8,027' 5,916' 5.620" Motors-Summit 500HP tandem i (1000HP/3600V/165.5A) 8,093' 5,959' - 5.620" Gauge(Zenith)/Centralizer/Anode PERFORATION DETAIL IIZone Top MD Btm Top BTM FT SPF Date Status -; 5 MD ND ND HK-1 11,922' 11,971' 9,191' 9,228' 49' 5 11/25/2016 Open iHK-1 11,980' 11,985' 9,235' 9,239' 5' 5 11/25/2016 Oen Liner Hanger4,1; p 8,147' HK-1 11,993' 11,998' 9,245' 9,249' 5' 5 11/25/2016 Open Min ID 6.670" HK-2 12,008' 12,033' 9,257' 9,273 25' 5 11/25/2016 Open 8-1/2"TOW HK-2 12,041' 12,121' 9,279' 9,334' 80' 5 11/25/2016 Open 8,445' HK-3 12,151' 12,394' 9,350' 9,487' 243' 5 11/25/2016 Open HK-4 12,425' 12,522' 9,503' 9,544' 97' 5 11/25/2016 Open HK-5 12,565' 12,780' 9,562' 9,650' 215' 5 11/25/2016 Open HK-6 12,854' 12,954' 9,651' 9,679' 100' S 11/25/2016 Open TOC 10,253' , te ;:. HK-1 r2, HK-2 L•' HK-3 1,0: '= HK-4 't ' HK 5 i''.,: HK-6 4.0 6 .: TD=13,233' PBTD=13,065' Max Hole Angle=80° Updated By:_ILL 07/31/17 • • Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date K-10RD2 Moncla 404 50-733-20167-02 216-099 7/19/17 7/24/17 07/19/2017-Wednesday Draw-works and A-frame onboard. Finished w/modification of shim and positioned same in place- installed spreader bars. Onloaded carrier and set in positioned- mounted draw-works and A-frame. Brought derrick onboard and Moncla mechanic inspected crown sheaves-welder fabed and welded braces for fast line crown sheave. Released M/V Resolution to return to Dolly for 2nd load of W/O equipment (1030 hrs M/V on hold due to slack tide and winds). Mounted walkways on either side of carrier. Position test pump @ front of carrier and driller's shack on beams. Moved koomey unit in place and began running hoses. M/V began loading at Dolly at 1230 hrs. Pinned derrick on carrier. Half mast derrick and installed drill and cat lines then laid derrick in headache rack. Torqued bolts on draw works, moved change house. Received 2nd load of W/O package. Spotted choke house, racking mat beam, parts conex, mud tank and pump, heater and diesel tank-secured carrier cables to skid beams- placed stairs and landing on rig-stop unloading boat due to tide. R/U pump, return lines and bleed off line to tank. Finish off loading M/V Resolution. Continue running lines f/choke house t/gas buster and running lines t/circ manifold- R/U test pump. Set racking matt in place and fix grading around racking matt beam, greased all choke valves. Hook up lines t/take on FIW in pit tank-fill rig tank w/ FIW. Began offloading 3rd and final load of W/O package. 07/20/2017 Thursday Finished onloading 3rd and final load of W/O package +Summit pulling equipment from M/V Resolution, spotting as needed. NOS rep opened tb and installed BPV (tb on vacuum). N/D tree-terminated control lines- prepped and cleaned hanger- M/U LH blanked & ported test subs. N/U 13 5/8" 5M BOPS. Installed accumulator hoses on the BOP's and torqued up all flanges on the bop stack. Raised and scoped out derrick securing all guy lines- positioned rig floor to hang with air hoist and block. Mounted floor w/supports and wind walls. Prod electrician hooked up gas alarms system. M/U 4 1/2" IBT test jt w/ pumpin, SV& IBOP-screwed into blanked & ported sub in hanger. R/U test pump and trouble shoot electrical panel box w/ production electrician- relocated plug-in F/test pump. Shell tested BOPs 250 low 2500 high-worked out leaking issues. Began testing BOPE to 250 psi low 2500 psi high as per Sundry in accordance to Hilcorp &AOGCC requirements. Performed successful accumulator draw down test. Test witness waived by Mr. Regg 1:27 PM 7/19/17 by email. • Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date K-10RD2 Moncla 404 50-733-20167-02 216-099 7/19/17 7/24/17 Daily Opertin .. 07/21/2017- Friday Finished testing BOPE to 250 psi low 2500 psi high as per Sundry in accordance to Hilcorp &AOGCC requirements. Performed successful accumulator draw down test. Test witness waived by Mr. Regg 1:27 PM 7/19/17 by email. Electrician corrected setting issue with power panel. B/0 LH blanked and ported test subs from hanger- pulled BPV and M/U landing jt w/safety valve. B/O hold down pins and opened casing valve. Picked up on string and hanger moved off tb head at 92k-sheared pkr pins at 154k moved uphole at 122k. Pulled hanger to surface and filled hole w/21 bbls FIW. Worked control lines, power cable and hanger- laid down hanger- R/U Summit ESP pulling equipment. Pulled 5-stands then laid down SSSV w/pups and packer w/pups- pumped 86 bbls to fill hole (fluid started falling out once pump was shut down). Held muster and abandon platform drill. Continue pooh w/4 1/2" super-max tubing and stand back in derrick t/7400'. Circulate down tbg and take returns t/TB @ 2.5 bbls min w/ 40 PSI pump 4400 sks 156 bbls t/clean up back side. Continue pooh w/4 1/2" super-max completion tubing and stand back in derrick t/5100'. Change out Summit ESP cable reel. Continue pooh w/4 1/2" super-max completion tubing and stand back in derrick F/5100' T/ 1,015' at report time (113 of 127 stands OOH). 07/22/2017-Saturday Finished POOH racking back 4 1/2" 12.6# L-80 SuperMax tb to Summit ESP assy. Pumped 20 bbls FIW every 20 stands. Dismantled ESP assy noting nothing unusual in dual pump sections, intake section normal, easy of rotation in seal sections suspect (to be torn down later), top motor ok, shaft in btm motor has dropped down and unable to engage coupler- burnt smell and discolored oil +one wire showing signs of heat. All clamps and bands accounted for. Cleared and cleaned floor and work area prior to running new ESP assy. Pumped 88 bbls FIW to fill well. 1 hr later pumped 89 bbls to refill- prepped floor to run new ESP assy. P/U new dual 500 HP motors- M/U gauge and centralizer/anode on btm motor-serviced motors. M/U lower and upper tandem seal sections, intake sub assembly, dual pumps, discharge, ported pressure sub, EUE XO x Supermax. Tested power cable and flat pack. Tripping in hole w/ ESP assy on 4 1/2" 12.6# L-80 Supermax production tubing (rerun)-drifting and torqueing to specs (3200 FPT)-testing power cable every 1000'. 94 of 127 stands+ ESP assy ran in at report time = 5,920'. • Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date K-10RD2 Moncla 404 50-733-20167-02 216-099 7/19/17 7/24/17 Daily Operations.: :' 07/23/2017-Sunday Continued RIH w/Summit dual 500 HP ESP assy on 4 1/2" 12.6# L-80 (rerun) SuperMax tb to 6,045'. Changed power cable spools and made splice at stand #70 (splice will be 2,030' from hanger). Continued RIH w/Summit dual 500 HP motor ESP assy on 4 1/2" 12.6# L-80 (rerun) SuperMax tb to nipple/pkr depth (7,689'). M/U XN nipple and Tripoint ESP Dual pkr assy-Summit plumbed power cable and flat pack control lines thru. P/u SSSV@ 7710' hook up control lines t/SSSV and test same t/5000 psi All good. Continued RIH w/Summit dual 500 HP motor ESP assy on 4 1/2" 12.6# L-80 (rerun) SuperMax tb @ 7963' add 2 -4 1/2" 12.6# L-80 superMax pups 8.08', and 6.92'. Continued RIH T/8041.49'. P/U FMC 13 5/8 " X 4 1/2" ESP Tubing Hanger. M/U and Splice through hanger and M/U 4 1/2" Landing it and adjust Rig. Lower Hanger Down on set (EOTs at 8,093.23') and RIDS w/ NOS well head hand - DN WT 68K. Check Summit cables and control line All Good. R/U S/L unit RIH w/ 3.790 gauge run t/xn nipple 428'- POH P/U bar RIH set @ 428' POH /Stand by w/w.l unit. R/U T/ Fill Back side and TBG w/ FIW 65 BBI t/ Fill Hole R/U t/Test tubing and set PKR pres up t/3700 PSI F/30 mins w/ no loss Bleed Off t/0 line up t/ Back side, pres up t/ 1700 PSI. Presently working thru leaking and trapped air issues to get solid casing test. 07/24/2017 - Monday R/U Pollard S/L and retrieved prong and RHCP plug from XN nipple at 427' (used to set Tripoint hyd pkr). R/D Pollard S/L. Pulled landing jt and set BPV. Tightend one lockdown nut on tb head and retested 9 5/8" casing (pkr set at 403')to 1500#s on chart f/30 mins- 200# leak in 30 mins (visual leak around hange). Cleared and cleaned rig floor-dismounted windwalls, supports and floor. Scoped in and laid over derrick. Began N/D BOPE. Production tied in 3/8" hose to flush well w/ FIW from water flood. 1400 hrs backloaded M/V Titan w/cargo and personnel. Finished N/D BOPE. Began N/U production tree w/ NOS rep- M/U adaper flange w/control lines through adaper- tested ESP cable and control lines- all good.Tested hanger void seals- no go-continued hooking up production flange and valves on tree. Pulled BPV and set 2-way check-tested tree t/4700 PSI (on chart)-all good, pull twc and rig up tree cap. Rigged up on 9 5/8" x 4 1/2" annulus valve and tested pkr and hanger seals w/ NOS hand t/ 1700 psi and seals bleed down 35 psi in 45 mins (charted 30 mins). Continued assisting production w/ hookups-while cleaning up well room. Worked M/V. Turned well over to production at 0230 hrs. THE STATE GOVERNOR BILL WALKER Stan Golis Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: McArthur River Field, Hemlock Oil Pool, TBU K-IORD2 Permit to Drill Number: 216-099 Sundry Number: 317-191 Dear Mr. Golis: 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. DATED this fl�day of May, 2017. Sincerely, 4"—, Cathy P. oerster FChair REMPOS L` 6Y 19 204 7 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 2n AA(' ?5 280 ECE,VE0 MAY 10 2017 AOGCr` 1. Type of Request: Abandon ❑ Plug Perforations ❑ Fracture Stimulate ❑ Repair Well ❑ Operations shutdown ❑ Suspend ❑ Perforate ❑ Other Stimulate ❑ Pull Tubing Q Change Approved Program ❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ Other. Replace ESP 21 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Hilcorp Alaska, LLC Exploratory ❑ Development Q Stratigraphic ❑ Service ❑ 216-099 . 3. Address: 3800 Centerpoint Drive, Suite 1400 6. API Number: Anchorage, AK 99503 50-733-20167-02-00 , 7. If perforating: 8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? N/A Will planned perforations require a spacing exception? Yes ❑ No 0 / Trading Bay Unit / K-10RD2 ' 9. Property Designation (Lease Number): 10. Field/Pool(s): ADL017594 / ADL018777 i I McArthur River Field / Hemlock Oil Pool 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi): Plugs (MD): Junk (MD): • 13,233 9,730 • 13,065 - 9,700 • 2,376 psi N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 384' 24" 384' 384' Surface 4,998' 13-3/8" 4,998' 3,913' 3,090 psi 1,540 psi Intermediate Production 8,445' 9-5/8" 8,445' 6,193' 9,440 psi 5,300 psi Liner 5,043' 7-5/8" 13,190' 9,724' 6,890 psi 4,790 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 11,922 - 12,954 9,191 - 9,679 4-1/2" 12.6# / L-80 8,083 Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): Dual ESP Packer & BTE-5 SSSV 395' (MD) 395' (TVD) & 370' (MD) 370' (TVD) 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch Q Exploratory ❑ Stratigraphic ❑ Development [ZI Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 7/20/2017 OIL [71 WIND ❑ WDSPL ❑ Suspended ❑ GAS ❑ WAG ElGSTOR ElSPLUG E]Commission 16. Verbal Approval: Date: Representative: GINJ ElOp Shutdown ❑ Abandoned ❑ 17. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name: Stan W. Golis Contact Name: Dan Marlowe Authorized Title: Operations Manager Contact Email: dinlarlOWO hilco .cord Contact Phone: 907 283-1329 S Authorized Signature: a..JT"�++► 4� )�..� Date: l7 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number. q Plug Integrity ❑✓ BOP Test Mechanical Integrity Test ❑ Location Clearance L1��� k5 Other: J K �L7L� �+j. ,`�C Post Initial Injection MIT Req'd? Yes ❑ No ❑ RBDMS t,__KAf i / C 1 J Spacing Exception Required? Yes ❑ Nod Subsequent Form Required: 1D—'q09 APPROVED BY COMMISSIONER THE COMMISSION Date: Approved by:�2L Form 10-403 Revised 4/2017 0 RIG Ja Ncis valid for 12 months from the date of approval. Submit Form and Attachments in Duplicate Aileorp Alaska, LLC Well Work Prognosis Well: K-10rd2 Date: 05/02/2017 Well Name: K-10rd2 API Number: 50-733-20167-02 Current Status: ESP Producer Leg: Leg #4 (NW corner) Estimated Start Date: July 20, 2017 Rig: Moncla 404 Reg. Approval Req'd? 403 Date Reg. Approval Rec'vd: Regulatory Contact: Juanita Lovett (8332) Permit to Drill Number: 216-099 First Call Engineer: Dan Marlowe (907) 283-1329 (0) (907) 398-9904 (M) Second Call Engineer: Stan Golis (907) 777-8356 (0) Current Bottom Hole Pressure: 3,295 psi @ 9,191' TVD 0.358 lbs/ft (6.89 ppg) based on ESP Gauge SIBHP Maximum Expected BHP: 3,295 psi @ 9,191' TVD 0.358 lbs/ft (6.89 ppg) based on ESP Gauge SIBHP Maximum Potential Surface Pressure: 2,376 psi Using 0.1 psi/ft gradient 20 AAC 25.280(b)(4) Brief Well Summary K-10rd2 is a Hemlock only producer completed with an ESP that failed April 14, 2017. This workover will replace the failed pump. J ~! Last Casing Test: 11/20/16 to 2,650 psi at 13,233' charted for 30 minutes. Procedure: 1. MIRU Moncla 404 2. Attempt to pump through ESP to circulate hydrocarbon off the well to production. If necessary, RU e -line and RIH to +/-7,925' and punch tubing. Work over fluid will be FIW. BOP'S will be closed as needed to circulate the well. 3. ND Wellhead, NU BOP and test to 250psi low/2,500psi high. (Note: Notify AOGCC 48 hours in advance of test to allow them to witness test). 4. Monitor well to ensure it is static. 5. Unseat hanger and POOH with high set packer and ESP completion. 6. PU and run ESP completion. a. A high set packer, packer vent valve, and SSSV will be ran if well indicates ability to flow to surface. 7. If applicable - Set and test packer to 1,500 psig charting for 30 minutes. 8. Set BPV. NU tree, test same. 9. Turn well over to production 10. Schedule SVS testing with AOGCC as per regulations. Attachments: 1. Well Schematic Current 2. Well Schematic Proposed 3. Wellhead Diagram Current/ Proposed (Same) 4. BOP Drawing 5. Fluid Flow Diagrams 6. RWO Sundry Revision Change Form McArthur River Field Well: K-10RD2 SCHEMATIC API #: 50-733-20167-02 llileorV Alaska. LLC PTD: 216-099 Last Completed: 11/30/2016 RKB to Sea Level (MSL) = 122' KB 48.5' 24` 13-3/8" Liner Hanger tv 8,147'` Min ID 6.670" 8-1/2" TOW 8,445' TOC 10,253' 4 5 6 7 8 9 F HK -1 - HK -2 HK -3 HK -4 HK -5 -= HK -6 TD = 13,233' PBTD = 13,065' Max Hole Angle = 80° Updated By: CJD 12/20/16 CASING DETAIL JEWELRY DETAIL No SIZE WT GRADE CONN ID TOP BTM. 24" 186 X-56 Weld Surface 384' 13-3/8" 61 K-55 BTC 12.515" Surface 2,500' 13-3/8" 68 K-55 BTC 12.415" 2,500' 4,998' 9-5/8" 47 Pilo BTC 8.681" Surface 8,445' TOW 7-5/8" 29.7 L-80 Hydril511 6.875" 8,147' 13,190' 7,979' 5,885' HK -2 TUBING DETAIL Pump (x2) 45 Stg SG16000 7 4-1/2" 12.6 L-80 Supermax 1 3.958" 1 Surface 8,083' Updated By: CJD 12/20/16 JEWELRY DETAIL No Depth MD Depth TVD ID OD Item 1 48.5' 48.5' 3.958" 13.625" FMC 13-5/8" x 4-1/2" ESP Tbg Hanger 2 370' 370' 3.813" 6.908" SSSV Superior BT(E)-5 3 395' 395' 3.930" 8.312" 9-5/8" 47# ESP Dual Packer w/ WFT vent valve 4 419' 419' 3.813" 5.570" X -nipple 5 7,959' 5,953' - 6.750" Discharge, Bolt -On 6 7,979' 5,885' HK -2 6.750" Pump (x2) 45 Stg SG16000 7 7,998' 5,897' 5 5.130" Seals 8 8,017' 5,907' 9,279' 5.620" (2) 562 Motors KMLST 500HP/180OV/165.5A 9 8,083' i 5,950' HK -3 5.620" Centralizer Anode Updated By: CJD 12/20/16 PERFORATION DETAIL Zone Top MD Btm MD Top TVD BTM TVD FT SPF Date Status HK -1 11,922' 11,971' 9,191' 9,228' 49' 5 11/25/2016 Open HK -1 11,980' 11,985' 9,235' 9,239' 5' 5 11/25/2016 Open HK -1 11,993' 11,998' 9,245' 9,249' 5' 5 11/25/2016 Open HK -2 12,008' 12,033' 9,257' 9,273 25' 5 11/25/2016 Open HK -2 12,041' 12,121' 9,279' 9,334' 80' 5 11/25/2016 Open HK -3 12,151' 12,394' 9,350' 9,487' 243' 5 11/25/2016 Open HK -4 12,425' 12,522' 9,503' 9,544' 97' 5 11/25/2016 Open HK -5 12,565' 12,780' 9,562' 9,650' 215' 5 11/25/2016 Open HK -6 12,854' 12,954' 9,651' 9,679' 100' S 11/25/2016 Open Updated By: CJD 12/20/16 McArthur River Field Well: K-10RD2 PROPOSED API #: 50-733-20167-02 Hileurp Alaska, LLC PTD: 216-099 Last Completed: Future RKB to Sea Level (MSL) = 122' KB 48.5' 24" 13-3/8" d Liner Hanger 8,147'; Min ID 6.670" 8-1/2" TOW 8,445' TOC 10,253' Fk ME r -- HK -1 H K-2 H K-3 - HK -4 ="- HK -5 -= H K-6 TD = 13,233' PBTD = 13,065' Max Hole Angle = 80° Updated By:JLL 05/09/17 CASING DETAIL JEWELRY DETAIL No SIZE WT GRADE CONN ID TOP BTM. 24" 186 X-56 Weld Surface 384' 13-3/8" 61 K-55 BTC 12.515" Surface 2,500' 13-3/8" 68 K-55 BTC 12.415" 2,500' 4,998' 9-5/8" 47 Pilo BTC 8.681" Surface 8,445TOW 7-5/8" 29.7 L-80 Hydril511 6.875" 8,147' 13,190' 11/25/2016 Open HK -2 TUBING DETAIL Pump 5 4-1/2" 12.6 L-80 Supermax 1 3.958" 1 Surface ±8,085' Updated By:JLL 05/09/17 JEWELRY DETAIL No Depth MD Depth TVD ID OD Item 1 48.5' 48.5' 3.958" 13.625" FMC 13-5/8" x 4-1/2" ESP Tbg Hanger 2 ±370' ±370' 3.813" 6.908" SSSV (contingent) 3 ±395' ±395' 3.930" 8.312" Packer w/ WFT vent valve (contingent) 4 ±420' ±420' 3.813" 5.570" X -nipple (contingent) HK -1 11,993' 11,998' - 6.750" Discharge, Bolt -On 5 11/25/2016 Open HK -2 6.750" Pump 5 9,273 25' 5 5.130" Seals HK -2 12,041' 12,121' 9,279' 5.620" Motor 5 ±8,085' ±5,954' HK -3 5.620" Centralizer Anode Updated By:JLL 05/09/17 PERFORATION DETAIL Zone Top MD Btm MD Top TVD BTM TVD FT SPF Date Status HK -1 11,922' 11,971' 9,191' 9,228' 49' 5 11/25/2016 Open HK -1 11,980' 11,985' 9,235' 9,239' 5' 5 11/25/2016 Open HK -1 11,993' 11,998' 9,245' 9,249' 5' 5 11/25/2016 Open HK -2 12,008' 12,033' 9,257' 9,273 25' 5 11/25/2016 Open HK -2 12,041' 12,121' 9,279' 9,334' 80' 5 11/25/2016 Open HK -3 12,151' 12,394' 9,350' 9,487' 243' 5 11/25/2016 Open HK -4 12,425' 12,522' 9,503' 9,544' 97' 5 11/25/2016 Open HK -5 12,565' 12,780' 9,562' 9,650' 215' 5 11/25/2016 Open HK -6 12,854' 12,954' 9,651' 9,679' 100' 5 11/25/2016 Open Updated By:JLL 05/09/17 Hilenrli .Ahk4a_ LTA-. King Salmon K-10RD2 24X133/8X95/8X4% BHTA, Bowen, 41/16 5M FE x 7"-5 Stub acme Bowen top King Salmon Platform K-10RD2 Tbg hanger, OCT -UH -TC -1A - ESP, 13 X 4 % IBT lift and susp, w/ 4" Type H BPV profile, 3/8 cont control line port Valve, Swab, WKM-M, 4 1/16 5M FE, HWO, EE trim Valve, Wing, SSV, WKM-M, 3 1/8 5M FE, w/ OMNI oper, EE trim Valve, Wing,WKM-M, 2 1/165M FE, HWO, DD trim � 0 Valve, Master, WKM-M, 4 1/16 5M FE, HWO, EE trim Valve, Wing, WKM-M, 3 1/8 5M FE, HWO, EE trim Adapter, OCT -A5 -ESP, 13 5/8 5M API hub X 41/16 5M stdd top, w/ 2- Y/ control line exits, prepped w/ OCT 400-4 pocket All unihead annular valves, 2 Unihead, OCT type 3, 13 5/8 5M API 1/16 5M FE OCT -20, HWO hub top X 13 3/8 BTC casing bottom, w/ 1- 2 1/16 5M SSO on lower section, 1- 2 1/16 SM SSO on middle section, 3- 2 1/16 5M SSO on upper section , IP internal lockpin asst' Mil "T Valve, OCT -20, 3 1/8 2M FE, Starting head, OCT, 21 % 2M FE X HWO 24" SOW, w/ 1- 3 1/8 2M EFO, full set oflockpins 24" 13 3/8" 9 5/8" 4 %" Hilvorp Alia"kv, MAI. King Salmon Platform BOP Stack (Moncla) 2 7/8-5 Valve Position (0/C) 0 Standpipe Pump Manifold 1 (PMI) Manifold Pump Manifold 2 (PM2) 0 Pump Manifold 3 (PM3) C Pump Manifold 4 (PM4) 0 Pump Manifold 5 (PMS) C Mud Kill Line 1 0 Cross Kill Line 2 0 HCR valve (Choke Line 1) C Choke Line 2 0 Choke Choke Manifold 1 (CMI) 0 Manifold Choke Manifold 2 (CM2) C Choke Manifold 3 (CM3) 0 Choke Manifold 4 (CM4) C Choke Manifold 5 (CM5) 0 Choke Manifold 6 (CM6) C Choke Manifold 7 (CM7) O Choke Manifold 8 (CM8) C Choke Manifold 9 (CM9) C Choke Manifold 10 (CM10) 0 Super Choke C Manual Choke C Rig Floor Safety Valve 0 Valve Position (0/C) 0 Standpipe Pump Manifold 1 (PMI) Manifold Pump Manifold 2 (PM2) C Pump Manifold 3 (PM3) 0 Pump Manifold 4 (PM4) C Pump Manifold 5 (PM5) 0 Mud Kill Line 1 O Cross Kill Line 2 O HCR valve (Choke Line 1) C Choke Line 2 O Choke Choke Manifold 1 (CMS) O Manifold Choke Manifold 2 (CM2) C Choke Manifold 3 (CM3) O Choke Manifold 4 (CM4) C Choke Manifold 5 (CM5) O Choke Manifold 6 (CM6) C Choke Manifold 7 (CM7) 0 Choke Manifold 8 (CM8) C Choke Manifold 9 (CM9) C Choke Manifold 10 (CM10) 0 Super Choke C Manual Choke C Rig Floor Safety Valve 0 0 Hilenrp Alaska, LLC Attachment #1 Moncla Rig 404 BOP Test Procedure Attachment #1 Hilcorp Alaska, LLC - BOP Test Procedure: Moncla Rig 404, WO Program — Oil Producers, Water Injectors Pre Rig Move 1) Blow down well, bleed gas to Well Clean Tank that is vented thru flare to atmosphere 2) Load well with FIW to kill well. • Note: Fluid level will fall to a depth that balances with reservoir pressure. 3) Shoot fluid level at least 24 hours before moving on well. 4) Shoot fluid level again, right before ND/NU. Confirm that well is static. Initial Test (i.e. Tubing Hanger is in the Wellhead) If BPV profile is good 1) Set BPV. ND Tree. NU BOP. 2) MU landing joint. Pull BPV. Set 2 -way check in hanger. 3) Space out test joint so end of tubing (ECT) is just above the blind rams. 4) Set slips, mark same. Test BOPE per standard test procedure. If the tubing hanger won't pressure test due to either a penetrator leak or the BPV profile is eroded and/or corroded and BPV cannot be set with tree on. Profile and/or landing threads must be prepped while tree is off. Worst Case: BPV profile and landing threads are bad. 1) Attempt to set BPV through tree. If unsuccessful, shoot fluid level. 2) If fluid level is static from previous fluid level shots, notify Hilcorp Anchorage office that the well is static and the tree must be removed with no BPV. As approved in the sundry, proceed as follows: a) ND tree with no BPV b) Inspect and prepare BPV profile to accept a 2 -way valve, or prepare lift -threads to accept landing joint to hold pressure. If well is a producer and the culprit is scale, attempt to clean profile with Muriatic acid and a wire brush or wheel. c) Set 2 -way check valve by hand, or MU landing (test) joint to lift -threads d) For ESP wells - Ensure that cap is on cable penetrator e) NU BOP. Test BOPE per standard procedure. 3) If both set of threads appear to be bad and unable to hold a pressure test and / or a penetrator leaks, notify Operations Engineer (Hilcorp), Mr. Guy Schwartz (AOGCC) and Mr. Jim Regg (AOGCC) via email explaining the wellhead situation prior to performing the rolling test. AOGCC may elect to send an inspector to witness. As outlined and approved in the sundry, proceed as follows: a) Nipple Up BOPE b) With stack out of the test path, test choke manifold per standard procedure c) Conduct a rolling test: Test the rams and annular with the pump continuing to pump, (monitor the surface equipment for leaks to ensure that the fluid is going down -hole and not leaking anywhere at surface.) d) Hold a constant pressure on the equipment and monitor the fluid/pump rate into the well. Record the pumping rate and pressure. e) Once the BOP ram and annular tests are completed, test the remainder of the system following the normal test procedure (floor valves, gas detection, etc.) 0 Hilcorp Alaska, LLC Moncla Rig 404 BOP Test Procedure Attachment #1 f) Record and report this test with notes in the remarks column that the tubing hanger/BPV profile / penetrator wouldn't hold pressure and rolling test was performed on BOP Equipment and list items, pressures and rates. 4) Pull hanger to surface. (Requires tubing cuts as necessary to free tubing). CBU to displace annulus and tubing with kill weight fluid. 5) If a rolling test was conducted, remove the old hanger, MU new hanger or test plug to the completion tubing. Re -land hanger (or test plug) in tubing head. Test BOPE per standard procedure. Subsequent Tests (i.e. Test Plug can be set in the Tubing -head) 1) Remove wear bushing. a) Use inverted test plug to pull wear busing. MU to joint of tubing. b) Thread into wear bushing c) Back out hold down pins d) Pull and retrieve wear bushing. 2) Break off test plug and invert same- RIH with test plug on joint of tubing. Install a pump -in sub w/ test line plus an open TIW or lower Kelly valve in top of test joint w/ open IBOP. 3) Test BOPE per standard procedure. STANDARD BOPE TEST PROCEDURE (after 2 -way check or test plug is set) 1) Fill stack and all lines with rig pump- install chart recorder on test line connected to pump -in sub below safety valve and IBOP in test joint assembly. 2) Note: When testing, pressure up with pump to desired pressure, close valve on pump manifold to trap pressure and read same with chart recorder (test pressures will be indicated in Sundry). 3) Referencing the attached schematics test rams and valves as follows. a) Close 15t valve on standpipe manifold, close valves 1, 2, 10 on choke manifold and close the annular preventer, open safety valve on top of test jt and close IBOP. Pressure test to 250 psi for 5 minutes and 2,500 psi high for 5 minutes. If passes after 5 minutes on each, bleed off pressure back to tank and open annular. b) Close pipe rams and open annular preventer, close safety valve and open IBOP on test joint, close outside valve on kill side of mud cross, open 15t valve of standpipe, close valves 3, 4 & 9 on choke manifold, open valves 1 & 2 on choke manifold. Test to 250 psi for 5 minutes and 3,000 psi high for 5 minutes. If passes after 5 minutes on each, bleed off pressure back to tank. c) Test Dual Rams. If the well has dual tubing, and dual rams are installed in the stack, test the dual rams by picking up two test joints with dual elevators and lowering them into stack and position them properly in the dual rams. Close rams. Test to 250 psi for 5 minutes and 3,000 psi for 5 minutes. If passes after 5 minutes on each, bleed off pressure back to tank. d) Close inside valve / open outside valve on kill side of mud cross, close valves 5 & 6 / open valves 3 & 4 on choke manifold. Test to 250 psi for 5 minutes and 3,000 psi for 5 minutes. If passes after 5 minutes on each, bleed off pressure back to tank. e) Close manual and super choke / open valves 5 & 6 on choke manifold. Pressure up to — 1200 psi and bleed off 200 — 300 #s recording change and stabilization. If passes after 5 minutes, bleed of pressure back to tank. f) Close HCR (outside valve on choke side of mud cross), open manual & super choke. Test to 250 psi for 5 minutes and 3000 psi for 5 minutes. If passes after 5 minutes on each, bleed off pressure back to tank. Hilcorp Alaska, LLC, Moncla Rig 404 BOP Test Procedure Attachment #1 g) Close inside valve / open outside valve (HCR) on choke side of mud cross. Test to 250 psi for 5 minutes and 3000 psi for 5 minutes. If passes after 5 minutes on each, bleed off pressure back to tank. h) Ensure all pressure is bled off- open pipe rams and pull test joint leaving test plug / 2 -way check in place. Close blind rams and attach test line to valve 10 on choke manifold, close valve 7 & 8 / open valve 10 on choke manifold. Test to 250 psi for 5 minutes and 3000 psi for 5 minutes. If passes after 5 minutes on each, bleed off pressure back to tank. i) Test additional floor valves (TIW or Lower Kelly Valve) and IBOPs as necessary. STANDARD TEST PROCEDURE OF CLOSING UNIT (ACCUMULATOR) 1) This is a test of stored energy. Shut off all power to electric and pneumatic pumps. 2) Record "Accumulator Pressure". It should be +/- 3,000 psi. 3) Close Annular Preventer, the Pipe Rams, and HCR. Close 2nd set of pipe rams if installed (e.g. dual pipe rams). Open the lower pipe rams to simulate the closing volume on the blinds. 4) Allow pressures to stabilize. 5) While stabilizing: Record pressure values of each Nitrogen bottle and average over the number of bottles. (i.e Report might read "10 bottles at 2,150 psi"). 6) After accumulator has stabilized, record accumulator pressure again. This represents the pressure and volume remaining after all preventers are closed. (The stabilized pressure must be at least 200 psi above the pre - charge pressure of 1,000 psi). 7) Turn on the pump and record the amount of time it takes to build an additional 200 psi on the accumulator gauge. This is usually +/- 30 seconds. 8) Once 200 psi pressure build is reached, turn on the pneumatic pumps and record the time it takes for the pumps to automatically shut-off after the pressure to builds back to original pressure (+/- 3,000 psi). Note: Make sure the electric pump is turned to "Auto", not "Manual" so the pumps will kick-off automatically. 9) Open all rams and annular and close HCR to place BOPE back into operating position for well work. 10) Fill out AOGCC report. FINAL STEP, FINAL CHECK 1) Test Gas Alarms 2) Double check all rams and valves, for correct operating position 3) Fill out the AOGCC BOPE Test Form (10-424) in Excel Format and e-mail to AOGCC and Juanita Lovett. Document both the rolling test and the follow up tests. Hilcorp Alaska, LLC Hilcorp Alaska, LLC Changes to Approved Rig Work Over Sundry Procedure Subject: Changes to Approved Sundry Procedure for Well K-10RD2 (PTD 216-099) Sundry #: XXX -XXX Any modifications to an approved sundry will be documented and approved below. Changes to an approved sundry will be communicated to the AOGCC by the rig workover (RWO) "first call' engineer. AOGCC written approval of the change is required before implementing the change. Sec Page Date Procedure Change New 403 Required? Y / N HAK Prepared By (Initials) HAK Approved By (Initials) AOGCC Written Approval Received (Person and Date) Approval: Prepared: Asset Team Operations Manager Date First Call Operations Engineer Date P 6 ZjCcc`1G Regg, James B (DOA) From: Regg, James B (DOA)r Sent: Friday, November 25, 2016 11:34 AM To: 'Marvin Rogers - (C)' Subject: RE: K lord Blind Rams closed Blind rams need to be tested next trip to surface. ✓ Jim Regg Supervisor, Inspections AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907-793-1236 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 Jim Regg at 907- 793-1236 or jim.regg@alaska.gov. From: Marvin Rogers - (C) [mailto:mrogers@hilcorp.com] Sent: Friday, November 25, 2016 10:50 AM To: Regg, James B (DOA) <jim.regg@alaska.gov> Cc: Dan Marlowe <dmarlowe@hilcorp.com>; Monty Myers <mmyers@hilcorp.com>; Steve Lawrence - (C) <slawrence@hilcorp.com> Subject: K 10rd Blind Rams closed Mr Regg At approx. 0200 hrs this morning we were running in the hole with our perf guns and we got to the depth where we needed to shut the Fast Fill Valve at 9922'. To close this valve we needed to close the bag and line up on the choke so we could read the pressure on both the ann and the DP. The driller went to close the bag and instead lifted the blind ram cover and hit the blinds closed. The night DSM was standing close to him and tried to stop him but he was to late. The driller did push the open button immediately. The pipe was picked up to the floor and they could see where the rams had touched the pipe. You could see where it was slightly deformed so the jt was laid down. Don't think there was any damage done to the blind rams but we figured we should at least give you notice of the incident. The driller was relieved by the other driller on board and is being sent in to be drug tested as per our policy. 11rlc;orp Alaska, LLC: DSM KING SALMON 907-776-6699 Cell [907] 252-1609 E -Mail: mrogers@hilcorp.com THE STATE GOVERNOR BILL WALKER Stan W. Golis Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Dr., Ste. 1400 Anchorage, AK 99503 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov Re: McArthur River Field, Hemlock and Middle Kenai G Oil Pools, TBU K-IORD2 Permit to Drill Number: 216-099 Sundry Number: 316-536 Dear Mr. Golis: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, �a� Daniel T. Seamount, Jr. Commissioner DATED this LCday of November, 2016. RBDM.. i v u`J 1 6 2016 RECEIVED STATE OF ALASKA O C T 17 2016 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 AOGGO 1. Type of Request: Abandon ❑ Plug Perforations ❑ Fracture Stimulate ❑ Repair Well ❑ Operations shutdown❑ Suspend ❑ Perforate Other Stimulate ❑ Pull Tubing ❑ Change Approved Program ❑ Plug for Redrill ❑ perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ Other: ESP Completion 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number. Hilcorp Alaska, LLC Exploratory ❑ Development Stratigraphic ❑ Service ❑ 216-099 3. Address: 3800 Centerpoint Drive, Suite 1400 6. API Number. Anchorage, AK 99503 50-733-20167-02-00 7. If perforating: 8. Well Name and Number, What Regulation or Conservation Order governs well spacing in this pool? CO 228A ' Will planned perforations require a spacing exception? Yes ❑ No M 1 Trading Bay Unit / K-10RD2 9. Property Designation (Lease Number): PX6 10. Field/Pool(s): ADL0018777 S McArthur River Field / Hemlock Oil and Middle Kenai G Oil Pools 11 • PRESENT WELL CONDITION SUMMARY Tl�MD (it):� Total Depth TVD (ft): E � tive� pth MT Effective Depth ND: MPSP (psi): Plugs (MD): Junk (MD): +oposed) ±9,578 (Proposed) ± 3, 0 (Proposed) r ±9,568 (Proposed) 2,540 psi WA N/A Casing Length Size MD TVD Burst Collapse Structural Conductor Surface 4,998' 13-3/8" 4,998' 3,877' 3,090 psi 1,540 psi Intermediate 8,445' 9-5/8" 8,445' 6,599' 6,870 psi 4,760 psi Production Liner ±5,000 (Proposed) 7-5/8" ±13,200 (Proposed) ±9,578 (Proposed) 6,890 psi 4,790 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached Schematic See Attached Schematic N/A N/A N/A Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): 43 N/A SS-C.V N/A 3S7�3 , 12. Attachments: Proposal Summary (] Wellbore schematic 0 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch I] Exploratory ❑ Stratigraphic ❑ Development El - Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 10/31/2016 OIL E WINJ ❑ WDSPL ❑ Suspended ❑ GAS ❑ WAG ❑ GSTOR ❑ SPLUG ❑ 16. Verbal Approval: Date: Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Contact Dan Marlowe (907) 283-1329 Email dmarlowe hilcor .com Printed Name Stan W. Golis Title Operations Manager Signature Phone 907 777-8356 Date l t' l 1 Zo I to COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: / Plug Integrity ❑ BOP Test Mechanical Integrity Test ❑ Location Clearance ❑ S f Other. �/0syo �N E Ove b r t..t�L J� / C--� ��L �••-- StJ Post Initial Injection MIT Req'd? Yes ❑ No ❑ Spacing Exception Re uire ? Yes r-1NoSubsequent Form Required: 1 1)-�% 07 �s� RDDMS APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: 1p I r44 L / Sr!ibmit Form and Form 10-ao3 Revised 11/ �15 Approved application l v�lRo I!Gout s m he date of approval. �� ttachments in Duplicate Hilcorp Alaska, LLC Well Work Prognosis Well: K-10rd2 Date: 10/13/2016 Well Name: K-10rd2 API Number: 50-733-20167-02 Current Status: Sidetracked Producer Leg: Leg #4 (NW corner) Estimated Start Date: October 31, 2016 Rig: Kuukpik #5 Reg. Approval Req'd? 403 Date Reg. Approval Rec'vd: Regulatory Contact: Juanita Lovett (8332) Permit to Drill Number: 216-099 First Call Engineer: Dan Marlowe (907) 283-1329 (0) (907) 398-9904 (M) Second Call Engineer: Monty Myers (907) 777-8431 (0) (907) 538-1168 (M) Current Bottom Hole Pressure: 3,638 psi @ 9,450' TVD 0.384 lbs/ft (7.41 ppg) based on K-1 Ord SIBHP Maximum Expected BHP: 3,638 psi @ 9,450' TVD 0.384 lbs/ft (7.41 ppg) based on K-10rd SIBHP Maximum Potential Surface Pressure: 2,540 psi Using 0.1 psi/ft gradient 20 AAC 25.280(b)( 4) Brief Well Summary K-10rd2 is a Hemlock only producer that will be completed with an ESP. This new well was side tracked from the current K-10rd which is a shut-in gas -lifted comingled G zone and Hemlock producer. This workover will perforate and run the completion string in the new well. Last Casing Test: Casing and liner tested to 2,500 psi under PTD 216-099. Procedure: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. ***Take over operations from the Drilling Sidetrack Program *** Test BOP to 250psi low/3,500psi high. (Note: Notify AOGCC 48 hours in advance of test to allow them to witness test). Workover fluids will be 6% KCL. Rig up E -Line and run cased hole logging suite. POOH. PU TCP guns, RIH and perforate per program. After detonation, circutlate out any perf gas, confirm well is static, POOH. PU and run ESP completion. a. A high set packer, packer vent valve, and SSSV will be ran if well indicates ability to flow to surface. If applicable - Set and test packer to 1,500 psig charting for 30 minutes. ✓` Set BPV. NU tree, test same. Turn well over to production Schedule SVS testing with AOGCC as per regulations. If applicable - Schedule no -flow with AOGCC as per regulations. Attachments: 1. Well Schematic Current 2. Well Schematic Proposed 3. Wellhead Schematic Proposed 4. BOP Drawing 5. Fluid Flow Diagrams 6. RWO Sundry Revision Change Form 0 Hilcorp Alaska, LLC SDD Liner Hanger ±8,200' 8-1/2" Window ±8,400' RKB to Sea Level (MSL) = 122' KB 35' I 3 F r 4 TD = 13,200' PBTD = 13,100' Max Hole Angle = 77° PROPOSED McArthur River Field Well: K-10RD2 API #: 50-733-XXXXX-02 PTD: XXX -XXX Updated By: MMM 08/15/16 CEMENT DETAIL CASING DETAIL JEWELRY DETAIL No SIZE WT GRADE CONN TOP BTM. 24" 186 X-56 Weld 0 384' 13-3/8" 61 K-55 BTC 0 1511' DV Tool cemnet LCM 1511' 1514' 13-3/8" 61 K-55 BTC 1514' 2500' 13-3/8" 68 K-55 BTC 2500' 4998' 9-5/8" 47 P110 BTC 0 8898' 7" 29 L-80 T DWC/C 8200' 13200' Updated By: MMM 08/15/16 CEMENT DETAIL No JEWELRY DETAIL No Depth (MD) Depth (TVD) ID Item 1 ±8,200' ±5,970' 6.059" SDD Baker Liner Hanger 2 ±8,400' ±6,101' - KOP 3 ±8,200'- 13,200' ±9,663' 6.059" 7" 29# L-80 DWC/C Updated By: MMM 08/15/16 CEMENT DETAIL No TOC Depth TOC Depth Volume Item (MD) (TVD) 4 ±10,000' ±7,459' 95 bbls 15.3 ppg Class G cement w/ % bbl cemnet LCM Updated By: MMM 08/15/16 Hilcoru Alaska, LLC RKB to Sea Level (MSL) = 122' KB 35' 24" Q' iNSII-WA YI v Liner Hanger ±8,200' 9-518" TOW 8,445' L11 HK -1 HK -2 HK -3 HK -4 HK -5 HK -6 A TD ±13,200' PBTD=±13,100' Max Hole Angle = ±77° PROPOSED McArthur River Field Well: K-10RD2 API #: 50-733-20167-02 PTD: 216-099 Updated By: DEM 10/13/16 JEWELRY DETAIL CASING DETAIL Depth ID TVD OD Item SIZE WT GRADE CONN ID TOP BTM. 24" 186 X-56 Weld Surface 384' 13-3/8" 61 K-55 BTC 12.515" Surface 2,500' 13-3/8" 68 K-55 BTC 12.415" 2,500' 4,998' 9-5/8" 47 Pilo BTC 8.681" Surface 8,445' TOW ±12,235' ±9,476' ±9,480' ±47' FUTURE HK -4 7-5/8" 29.7 L-80 Hydril 1 6.875" ±8,200' ±13,200' HK -5 ±12,491' ±12,512' TUBING DETAIL ±91508' ±21' 4-1/2' 1 12.6 L-80 Supermax 1 3.958" 1 Surface ±8,100' Updated By: DEM 10/13/16 JEWELRY DETAIL No Depth MD Depth ID TVD OD Item ±350' ±350' Contingent -SSSV ±380' ±380' Contingent - High set packer with vent valve ±400' ±400' 3.813" Contingent - X -nipple ±8,100' ±6,285' Bottom of ESP ±13' FUTURE HK -1 ±11,934' ±11,948' ±9,442' ±9,444' ±14' FUTURE HK -2 ±12,037' ±12,097' ±9,460' ±9,466' ±60' FUTURE HK -3 ±12,188' ±12,235' ±9,476' ±9,480' Updated By: DEM 10/13/16 PERFORATION DETAIL Zone Top MD Btm MD Top TVD BTM TVD FT Date Status HK -1 ±11,905' ±11,918' ±9,436' ±9,438' ±13' FUTURE HK -1 ±11,934' ±11,948' ±9,442' ±9,444' ±14' FUTURE HK -2 ±12,037' ±12,097' ±9,460' ±9,466' ±60' FUTURE HK -3 ±12,188' ±12,235' ±9,476' ±9,480' ±47' FUTURE HK -4 ±12,371' ±12,384' ±9,494' ±9,495' ±13' FUTURE HK -5 ±12,491' ±12,512' ±9,506' ±91508' ±21' FUTURE HK -6 ±12,667' ±12,734' ±9,524' ±9,531' ±67' FUTURE Updated By: DEM 10/13/16 111 Ifilenrla Ahtrka- IAS: King Salmon K-10RD2 24X133/8X95/8X4% BHTA, Bowen, 4 1/16 5M FE x 7"-5 Stub acme Bowen top Valve, Swab, WKM-M, 4 1/16 5M FE, HWO, EE trim Valve, Wing,WKM-M, 2 1/16 5M FE, HWO, DD trim ,_^ Valve, Master, WKM-M, 4 1/16 5M FE, HWO, EE trim Unihead, OCT type 3, 13 5/8 5M API hub top X 13 3/8 BTC casing bottom, w/ 1- 2 1/16 5M SSO on lower section, 1- 2 1/16 5M SSO on middle section, 3- 2 1/16 5M SSO on upper section , IP internal lockpin assy Starting head, OCT, 21 % 2M FE X 24" SOW, w/ 1- 3 1/8 2M EFO, full set oflockpins King Salmon Platform K-1ORD2 Proposed 10/14/2016 Tbg hanger, OCT -UH -TC -1A - ESP, 13 X 4 % IBT lift and susp, w/ 4" Type H BPV profile, 3/8 cont control line port Valve, Wing, SSV, WKM-M, 3 1/8 5M FE, w/ OMNI oper, EE trim Valve, Wing, WKM-M, 3 1/8 5M FE, HWO, EE trim Adapter, OCT -AS -ESP, 13 5/8 5M API hub X 41/16 5M stdd top, w/ 2- % control line exits, prepped w/ OCT 400-4 pocket All unihead annular valves, 2 1/16 5M FE OCT -20, HWO Valve, OCT -20, 3 1/8 2M FE, " A HWO Hiinnrp Alls"ka, l.l.0 .]a King Salmon Platform 2016 BOP Stack (Kuukpik) 06/22/2016 Rig Floor Choke Manifold Valves 2" To Shaker 3" Panic 3 1/8"�'_ 2 1/16" QI o N r0 21/1 � Q 3 1/8" rn 1 � � 2 1/16" Manual Choke Inle 3" 3" To Gasbuster 2 1/16" 2 1/16" io n N \, 2 1/16" Automatic Choke 2 1/16" t Pressure Sensor 3" 5,000 PSI Choke Manifold Kuukpik Drilling Rig 5 RED = 3 1/18" 5,000 PSI VALVES AND LINES BLUE = 2 1/16" 5,000 PSI VALVES Kuukpik Drilling Rig 5 Choke Manifold Kuukpik Drilling Rig 45 Normal Operations Fluid Flow Diagram 3" Panic Area :talaDor valve Positfoa Offen _ Area '_umber_ Choke Manifold _IO _ Valve _ _ 2 1116_' 5000 psi Gate Position Closed Area 3lud Cross Number _ 19 _Inside Valve \Ian_ual Choke Line_ Va_ _h•e Position Offen Choke Manifold _.I _ 2 U16" 500_Oysi Gate _ _2_ _ 2 U16" SOOO�si Gate Offen _ 11 _ 2_1116" 5000 psi Gate Closed 20 HCR Closed _ 3 _ 2 1/16" 5_OOO�si Gate Offen _ 12 _ 3.118" 5000 psi Gate Closed _ 21__ _ _ _ _ _ _ _ Inside Manual Kill Line_valc_e Offen _ 4 _ 2 1116"_5000 jsi Gate Offen _ 13 _ 3 /8" 5000 psi Gate _ Closed 22 Outside Manual Kill Line Valve Closed_ SOOOZsi Gate Offen _ 14 2 1/16" S000p i Gate Closed Area _ \amber Vahe Position • _ 6 _ 2 1116_' 5000 psi Gate O_pen _ 15 _ 2_U . 500_O�si Gate losed Standpipe 23 Cellar_St_an ►pe \_ah e C_losed_ 2 1/16" 500_O�si Gate Offen _ _ 16 _ _3 1!8" 5000_psi Gated _ 24 _ _ _ _floor StandpiQe _Vah e_ _ _Oen _ 8 _ 2 1116" SOOO�si Gate Closed_ _ 17 _ Sianual Choke Valvelosed rlo�e _ 25 _ _ _ _ . _ _ _ _ IBOP _ _ _ _ Offen _ 9 _ 2 1;16" 50OOksi Gate Closed _18 •_ _ SV er Choke _losed_ Kuukpik Drilling Rig #5 Reverse Circulating Operations Fluid Flow Diagram 3" Panic Ax" Number V Choke Manifold _ 1 _ 2 1/16" 500_0 psi Gate Open — _ 2 _ 2 1116" 5_ _000 psi p _ Open — — 3 _ 2 1116" 500_0 psi Gate _ Open _ _ 4 _ 2 1116" 5_000 _ psi Gate Open _ _ 5 _ 2 1116" 5_00_0 psi Gate Open _ _.6.._[2 1116"5000 -psi GateOpen — _17_ _ 2 1116" 500_0 psi_Gate Open _ _ 8 6" _ 2_ 1/1 500_0 psi Gate Closed_ psi Gate Closed Area Nnmber _ r_ah-e _ poauon Choke Manifold —10 _ 2 1116_ 5_000 �►si Gate Closed _ll 21116" 5000 psi G_ate ___ Closed _ —12 3 1/8" 5000 psi Gate _ Closed _ 13 3 118" 5000 psi Gate _ Closed _14 2 1/16" 5_000_ psi Gate Closed - -15 2_1116" 5_000 psi Gate Closed 24 - 118" 50_00 psi Gate Closed _17_ Nlanual Choke �'alh a Closed Super Choke_ Closed_ 24 Stand Pipe Rig Floor Mud Pumps 23 J 22 Kill Line Mud Pits area Number V ahre Position Jlud Cross — 19 Inside Manual Choke Line \'ah -e — — — ---HCR —_ Open _.20 _Closed _2 I_aside_\tan_ual_Kill Line \'ah•e_ —Oen 22 Outside Manual Kill Line Valve-- ------------------------ en —---- Area Number Valve position Standpipe _ 23— — _Cellar Standpipe �_ah_e _ _ _Open 24 - Floor Standpipe Wath-! --•-----•--- ----- - - Closed - - — "g— — — — — jlB p ---------- - —�pe� Kuukpik Drilling Rig #5 Well Kill Operations Fluid Flow Diagram e 3" Panic Gasbuster 7 11 10 17 Flow Line 6 9 14 16 8 Choke Line 13 12 1 20 19 Choke Manifold 5 1, 2 15 4 3 18 Shaker Stand Pipe 25 I 24' 23 21 22 Kill Line Rig Floor Mud Pumps Mud Pits Area Numb" Valve Position _Open- Area Number Choke 3lanifold _ 1_0 _ _ _ ValvePosition _ 2_111_6" 50_00 psi Gate Closed_ Area Number Mud Cross _ _19_ _ Vah-e Ins_id_ a \Ia_n_ual C---------hokeLine�'_a_h-e_ Position Oen --p-- - Choke Manifold - 1— 2 1116" 5_000 psi Gate - 2 _ 2 1116" 5_000 psi Gate Open- _ 11 _ 2_ _1,'1_6" 50_00_psi Gate Closed_ - _20_ _ _ _ _ _ _HC_R- - 3 _ 2 1/16" 5000 - --------- psi Gate Open •- -• _ 12 _ 3_1/_8"_5000 psi Gate - �-------------- CloedInside_Manual Bill Line_�'_ahe _ O eo 4 - _ 2 1/16" 5_000 psi Cate _Open- _ 1_3 _ 3_1/_8"_50_00 psi Gate Closed_ 22_ ut_sid_e_M__a_n_ual Kill__Li_n_e_N'aIve_- Closed 5- - _5 _ 2_1116" 5_000_psiGate _Open- __14 _ 2_1/1_6" 5000 psi ------Gate Open- - Area \umber _O_ \'atve ------- position - 6 2 1116" 5000 psi Gate _Open_ 15 2 1116"_50_00 psi Gate Closed_ Standpipe 23 Cellar_ Standpipe Valve - 7 _ 2 1/16" 5000 psi Gate _Open- 16 _ 3_11_8 SOOOpsi Gate Closed_ - - _24 _ _ - - _ _ - Floor Stan�ipe �:ah_e - - _CI_osed -Open _8 _ 2 1/16" 5000 si Gate Closed_ _ 17 _ �Ianuai Choke Cah a C_ losed- - 25 - - - - - - IBOP - - - - - -Open - - 9 - 2 1/16" 5000 psi Gate Closed - 18 - -Super Choke- - Open - Hilcorp Alaska, LLC Attachment #1 Hilcorp Alaska LLC. Rolling BOP Test Procedure: Kuukpik 5 — Oil/Gas Producers, Water/Gas Injectors Kuukpik 5 BOP Test Procedure Attachment #1 Initial Test (i.e. Tubing Haniter is in the Wellhead) If BPV profile & lift threads were deemed good, but still unable to get good tests 1) If both set of threads appear to be bad and unable to hold a pressure test and / or a penetrator leaks, notify Operations Engineer (Hilcorp), Guy Schwartz (AOGCC - guy.schwartz@alaska.gov ), Jim Regg (AOGCC - jim.regg@alaska.gov) and Michael Quick (AOGCC — Michael.quick@alaska.gov) via email explaining the wellhead situation prior to performing the rolling test. If on Federal land contact BLM representative Amanda Eagle (aeagle@blm.com) and Mutasim Elganzoory (melganzoory@blm.com). AOGCC and BLM may elect to send an inspector to witness. As outlined and approved in the sundry, proceed as follows: 2) With stack out of the test path, test choke manifold per standard procedure 3) Conduct a rolling test: Test the rams and annular with the pump continuing to pump, (monitor the surface equipment for leaks to ensure that the fluid is going down -hole and not leaking anywhere at surface.) Kill and choke line valve will also be tested during this time. 4) During these tests the test chart needs to be set to 60 min instead of 12 hours so chart shows a better graph. Need to station hands in cellar going over all connections on the BOPS looking for the slightest leak. Also need a man looking down the hole to confirm that the BOPs are not leaking. Test # 1= Annular, HCR Choke, and HCR Kill. Test # 2=Upper Pipe Rams, HCR Choke, and HCR Kill. Test # 3=Upper Pipe Rams, Manual Choke, and Manual Kill. Test # 4=Lower Pipe Rams. 5) Hold a constant pressure on the equipment and monitor the fluid/pump rate into the well. Record the pumping rate and pressure. 6) Once the BOP ram and annular tests are completed, test the remainder of the system following the normal test procedure (floor valves, gas detection, etc.) 7) Record and report this test with notes in the remarks column that the tubing hanger/BPV profile/penetrator wouldn't hold pressure and rolling test was performed on BOP Equipment and list items, pressures and rates. 8) Pull hanger to surface. (Making tubing cuts as necessary to free tubing). CBU to displace annulus and tubing with kill weight fluid and sweep off any oil cap that may be present. 9) If a rolling test was conducted, remove the old hanger, MU new hanger or test plug to the completion tubing. Re -land hanger (or test plug) in tubing head. Test BOPE as per Kuukpik's standard test procedure. Or POOH laying down all the tubing and use the normal test plug to finish the tests that were not completed as per regulatory approval. Kuukpik 5 BOP Test Procedure Attachment #1 If the tubing hanger won't pressure test due to either a penetrator leak or the BPV profile is eroded and/or corroded and BPV cannot be set with tree on. Profile and/or landing threads must be prepped while tree is off. Worst Case: BPV profile and landing threads are bad. 1) Attempt to set BPV through tree and test. May have to tap out if scaled up or paraffined up if well is not dead may have to be done w/ pressure lubricator (diesel or acid could help) 2) If unsuccessful, or BPV profile is eroded and well is dead. Best practice is to have two barriers a. Fluid column b. Set wire line plug or tag fluid level with slick line to establish static fluid level or shoot fluid level with an echo meter gun. 3) Shoot off tubing very shallow ( 300-500' most likely just under SSSV if applicable) 4) Spear hanger w/ upside down cup provided by fishing company 5) Proceed to get best test we can achieve against cup and confirm no visual leaks on all flanges of BOPE 6) Notify Hilcorp Anchorage Operations Engineer and AOGCC of situation 7) Pull hanger and cut off stub 8) P/U test plug and set same. 9) Perform complete BOPE test as per Kuukpik's standard procedure Hilcorp Alaska, LLC Hilcorp Alaska, LLC Changes to Approved Rig Work Over Sundry Procedure Subject: Changes to Approved Sundry Procedure for Well K-10RD2 (PTD 216-099) Sundry #:316 -XXX Any modifications to an approved sundry will be documented and approved below. Changes to an approved sundry will be communicated to the AOGCC by the rig workover (RWO) "first call' engineer. AOGCC written approval of the change is required before implementing the change. Sec Page Date Procedure Change New 403 Required? Y / N HAK Prepared By (Initials) HAK Approved By (Initials) AOGCC Written Approval Received (Person and Date) Approval: Prepared: Asset Team Operations Manager Date First Call Operations Engineer Date McArthur River Field Well: K-10RD2 PROPOSED y,�� API #: 50-733-20167-02 Hilcnrp Alaska, LL( 2 PTD: 216-099 / Last Completed: 11/xx/2016 RKB to Sea Level (MSL) =122' KS 35' 24° J' 13-3/8" Liner Hanger �W!`�. +8.200' ..r 9-5/8° TOW 8,445' r HK -1 _ HK -2 = HK -3 = HK -4 HK -5 HK -6 TD = 13,233' PBTD = ±13,153' Max Hole Angle = 80° Updated By: DEM 11/11/16 CASING DETAIL No Depth MD Depth TVD SIZE WT GRADE CONN ID TOP BTM. 24" 186 X-56 Weld Surface 384' 13-3/8" 61 K-55 BTC 12.515" Surface 2,500' 13-3/8" 68 K-55 BTC 12.415" 2,500' 4,998' 9-5/8" 47 Pilo BTC 8.681" Surface 8,445' TOW ±12,151' ±12,394' ±243' FUTURE HK -4 ±12,425' 7-5/8" 29.7 L-80 Hydril 6.875" ±8,200' ±13,233' ±215' FUTURE HK -6 TUBING DETAIL ±12,954' ±100' 4-1/2" 12.6 L-80 Supermax 1 3.958" Surface ±8,100' Updated By: DEM 11/11/16 JEWELRY DETAIL No Depth MD Depth TVD ID OD Item ±350' ±350' 3.813" 6.908" Contingent —SSSV SuperiorBT(E)-5 ±380' ±380' 3.958" 8.312" Contingent — Packer D&L Hydroset I I w/ WFT vent valve ±400' ±400' 3.813" 5.200" 1 Contingent - X -nipple ±8,100' ±6,285' N/A 6.750" Bottom of ESP FUTURE HK -2 ±12,041 ±12,121' ±80' FUTURE HK -3 ±12,151' ±12,394' ±243' FUTURE HK -4 ±12,425' ±12,522' ±97' FUTURE HK -5 ±12,565' ±12,780' ±215' FUTURE HK -6 ±12,854' ±12,954' ±100' FUTURE Updated By: DEM 11/11/16 PERFORATION DETAIL Zone Top MD Btm MD Top BTM FT Date TVD TVD Status HK -1 ±11,922' ±11,971' ±49' FUTURE HK -1 ±11,980' ±11,985' ±5' FUTURE HK -1 ±11,993 ±11,998' ±5' FUTURE NK -2 ±12,008' ±12,033' ±25' FUTURE HK -2 ±12,041 ±12,121' ±80' FUTURE HK -3 ±12,151' ±12,394' ±243' FUTURE HK -4 ±12,425' ±12,522' ±97' FUTURE HK -5 ±12,565' ±12,780' ±215' FUTURE HK -6 ±12,854' ±12,954' ±100' FUTURE Updated By: DEM 11/11/16 1�OGGGG TBU K-10 RD2 50-733-20167-02-00 McArthur River Field Kenai Peninsula Borough, Alaska October 10, 2016 — November 15, 2016 Provided by: CANRIG 1)],11 j— Trcrr ��<'n,r�ra 1, I,. Approved by: John Serbeck Distribution Date: Nov 30, 2016 Compiled by: Tollef Winslow Joshua Dubowski Allen Odegaard 21 0099 27840 Hilcorp Alaska, LLC K-10 RD2 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary ...................... 1.2 Crew ................................................ 2 GENERAL WELL DETAILS ................... 2.1 Well Objectives ............................... 2.2 Hole Data ........................................ 2.3 Daily Activity Summary ................... 3 GEOLOGICAL DATA ............................. 3.1 Lithostratigraphy ............................. 3.2 Lithology Details ............................. 3.2.1.1 Tyonek Formation ................ 3.2.1.2 Tyonek G7 ........................... 3.2.1.3 Hemlock Formation .............. 3.2.1.4 Hemlock HTK-FW / HK1T.... 3.2.1.5 Hemlock HK2T..................... 3.2.1.6 Hemlock HK3T..................... 3.2.1.7 Hemlock HK4T..................... 3.2.1.8 Hemlock HK5T..................... 3.2.1.9 Hemlock HK6T..................... 3.2.1.10 Hemlock HK7T..................... 3.2.1.11 West Foreland Formation .... 3.3 Sampling Program ................................. 4 Drilling Data ........................................... 4.1 Surveys .................................................. 4.2 Bit Record .............................................. 4.3 Mud Record .................................... 4.4 Drilling Progress ............................. 5 SHOW REPORTS ................................. 6 DAILY REPORTS .................................. Enclosures 2" / 100' Formation Log (MD/TVD) 5" / 100' Formation Log (MD/TVD) 2" / 100' Drilling Dynamics Log (MD/TVD) 2" / 100' Gas Ratio Log (MD/TVD) 2" / 100' LWD Combo Log (MD/TVD) Final Data CD .. 2 .. 2 .. 2 .. 3 .. 3 .. 4 ..4 10 10 10 11 18 19 19 20 21 22 22 23 24 24 25 26 26 31 32 34 35 36 Hilcorp Alaska, LLC K-10 RD2 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary Parameter Equipment Type /Position Total Downtime Comments Ditch gas QGM Agitator (Mounted in possum belly) Flame ionization total gas & chromatography. 0 hrs. Effective Circulating Density ECD Halliburton 0 hrs. — Hook Load / Weight on bit PASON 0 hrs. — Mud Flow In PASON 0 hrs. — Mud Flow Out PASON 0 hrs. — Mudlogging Unit Computer S stem HP Compaq Pentium 4 (X2, DML & Ri watch) 0 hrs. — 0 hrs. — Pit Volumes, Pit Gain/Loss PASON 0 hrs. — Pump Pressure PASON 0 hrs. — Pump stroke counters PASON 0 hrs. — Rate of Penetration PASON 0 hrs. — RPM PASON 0 hrs. — 1.2 Crew Mud Logging Unit Type: Arctic Mud Logging Unit Number: ML030 Logging Geologists Years' Days2 Sample Catchers Years Days2 Tollef Winslow 8 32 Allen Odegaard 19 38 Josh Dubowski 8 35 Mike Skiles 10 30 -' Years' experience as Logging Geologist -2 Days at wellsite between rig up and rig down of logging unit. CANRIG Hilcorp Alaska, LLC K-10 RD2 2 GENERAL WELL DETAILS 2.1 WellObiectives Drill a sidetrack out of the K-1 ORD (King Salmon) to test the G-7 and complete Hemlock H-1 thru H-6 benches. This will be an ESP completion designed to move over 10,000 bbls of fluid per day. The ESP will be set at 11900' MD, just above the top of Hemlock. 7 5/8" flush joint liner inside the 9 5/8" to get the ESP to the required depth. The well very closely followed the planned directional path. The kickoff point was 8445'MD at 47.8° and began immediately dropping angle to 24° by 9361' MD. Held inclination at 23°-24° until 11005' MD. Continue drilling while building angle to 80° at 13233' MD (TD). 7-5/8" liner was hung from the 9-5/8" casing at 8147' MD and ran down to 13184' MD. Operator: HILCORP ALASKA, LLC Well Name: TBU K-10 RD2 Field: McArthur River Field County: Kenai Peninsula Borough State: Alaska Company Representatives: Shane Hauck, Marvin Rogers, Rick Brumley, Rance Pederson, Steve Lawrence Location: Surface Coordinates 727' FSL, 141' FEL, SEC 17, T9N, R12W, SM, AK Mud Line Elevation 73' AMSL Rotary Table Elevation 122' AMSL Classification: Development - Oil API #: 50-733-20167-02-00 Permit #: 216-099 Rig Name/Type: Kuukpik 5 / Arctic double Spud Date October 14, 2016 Total Depth Date: 11/10/2016 Total Depth 13,233' MD / 9,670' TVD Primary Targets Hemlock HK5T, HK6T Total Depth Formation: West Foreland Completion Status: — LWD-MWD Services. Halliburton / Sperry Drilling Services Directional Drilling Halliburton / Sperry Drilling Services Drilling Fluids Service Halliburton / Baroid Wireline Logging Service — CANRIG Hilcorp Alaska, LLC K-10 RD2 2.2 Hole Data Hole Section Max De th TO Formation MW ppg Dev 'inc Csg Dia Shoe Depth LOT PP9 MD TVD MD TVD R (ft) (ft) (ft) 8 '/2" 13233' 9670' West 9.0 80.3 7 5/8" 13184' 9661' NA Foreland 2.3 Daily Activity Summary October 11, 2016 The rig and Pollard E -Line rigged up the a -line system with a bridge plug. The E -line crew ran the bridge plug into the hole and set it at 8453' measured wireline depth. After setting the bridge plug, the a -line crew pulled their tools out of the hole and rigged down their equipment. The rig crew cut and slip 108' of drilling line as well as serviced the rig. The rig crew prepared to pick up the whipstock / milling BHA under the direction of the Baker Hughes representative, concurrently the pits were cleaned in preparation for repairs to be made by the welder. Four (4) inch heavy weight drill pipe was picked up and stood back. The wear ring was pulled while the welder worked on the pits. The rig floor was sealed. The rig continued to pick up the whipstock / milling BHA and 21 total joints of four (4) inch heavy weight drill pipe. The heavy weight drill pipe was drifted. The pumps were engaged to 300 gpm @ 730 psi to test the tools in preparation of running in the hole. October 12, 2016 The rig ran in the hole with the whipstock to 4240' MD at which point circulation was broken. The whipstock was hung off. The rig prepared to test the blow out preventers. The blow out preventers were tested and was witnessed by the AOGCC, Bob Noble. The BOP test equipment was rigged down. The rig continued to run in the hole with the whipstock to 8377' MD. Circulation was broken and the rig washed down to 8395' MD. The maximum amount of gas observed while pumping was 197 units. The whipstock was orientated and set at 8466' MD (driller's depth). The rig was serviced. October 13, 2016 The rig continued to prep for displacing to OBM. Built berm for metal cuttings barrel, foam cracks and gaps in cellar. Install low torque valve and tee on mud line from mud pump 1 to production pigline and pressure test. Deck drain plugs between sub and mud pump in, installed valve on mousehole drain. The welders continued to work on the shakers. The rig installed psi sensors for driller's console. The rig held a PJSM for displacing to OBM. The rig then pumped 23 bbls spacer (3 bpm @ 360 psi). Equalize pressure. With pipeline 100 psi over pump 3 BPM increasing to 5 BPM from 465 to 620 psi. Pump a total of 567 bbls total. Continue pumping out pits to pipe line 3 bpm @ 500 psi. shut in pipeline. 717 bbls pumped to trading bay. The rig then began cleaning the pits and lines in preparation to mill out the window. October 14, 2016 The rig continued cleaning pits in preparation for OBM. Once OBM was on board obtained slow pump rates: MP1 1-15 spm = 250 psi, 30 spm = 370 psi; MP2 2-15 spm = 260 psi, 30 spm = 370 psi with 8.9 ppg mud. Bring both pumps on at 350 gpm / 2450 psi ICP with cold mud. Tag up at 8443' while rotating and mill 8443' to 8446' at various parameters per DD. Continued to mill to 8462' then circulate bottoms up at 486 bbls. Maximum gas units was 10 @ 8454'. Monitor the well and pump a dry job. The rig performed various services to the rig then began pulling out of the hole. The rig pulled out to 1129' at report time. CANRIG Hilcorp Alaska, LLC K-10 RD2 October 15, 2016 The rig held a PJSM for pulling the rest of the string out of the hole. The picked up the new window mill BHA, performed rig service and tripped back in the hole. At 3317' the slip die fell out of the slip body, sucked out the flow box and drain riser to look for slip die. Began pulling out of the hole while filling every 5 stands to keep fluid down near wear ring. OBM began splashing outside of containment at the flowbox so the crew shut down to clean up and divert to secondary containment. Continue pulling out of the hole to surface. Fishing with T-Bar magnet at well head. Inspect the BHA and organize the rig floor. L/D mill BHA and performing housekeeping at report time. October 16, 2016 The rig worked on various housekeeping projects around the rig while waiting for the Pollard slick liners. Once Pollard arrived the crew rigged up their slick line and commenced fishing operations. The first run would not go through the stack. Rig up 4" centralizer and started second run but couldn't get past 51'. On the 3rd run Pollard rigged up an impression block and tripped into the hole to 900'. The fourth run Pollard rigged up a 2 YV magnet and ran in the hole to 8463'. Recovered only metal shavings. 3 %" magnet on the 5th run was a no go. Rigged up 8.1" junk basket for the 6th run and got that down to 900'. Pulled out to check basket (nothing). 7th run into hole with junk basket to 8400'. Rig down Pollard unit and pick up milling BHA. Perform rig service before running into the hole, stopping at 2500', 5000' and 7300' to fill pipe. Trip to bottom and continue milling window. Mill down to 8482', circulate bottoms up and prep for FIT. October 17, 2016 The rig completed the FIT with a 12.5 ppg EMW. After rigging down the test equipment they pumped a dry job and pulled out of the hole. Pulled to 684' and checked for flow (static). L/D milling BHA, pick up BHA number 6 and begin tripping into the hole. Shallow test tools. Continue tripping in hole, breaking circulation every 3000'. Conditioning mud and circulating at report time. October 18, 2016 The rig continued troubleshooting communication issues with the MWD tools. Started sliding from 8482' to 8511'. The rig worked pipe while troubleshooting mud pump number 2. Continue sliding from 8511' to 8553' then drill down to 8585'. Work on mud pump number two again. Time drill at 12 ROP from 858' to 8600'. Slide from 8600' to 8638' at report time. October 19, 2016 The rig continued to slide from 8638' to 8641'. Trip to shoe and change out saver sub, hole static. Trip back into hole, orient tool face and continue sliding through 8660'. Rotate and drill from 8660' to 8678'. Slide again from 8678' to 8696', circulate bottoms up and monitor well (static). Pull out of hole to 5815' and begin testing the BOP at report time. October 20, 2016 The rig continued to test the BOP while working on mud pump number 2. Tested lower pipe rams, choke valves 15, 16, 6, 11, 4, 5, IBOP, Dart, demco, 7, 14, 2, 9, 13, inside and outside manual kill from 250psi low to 3500psi high. Drain stack and change rubber seal on test plug and fill stack. Make up head pin and test hoses. Resume testing BOP valves 12, 8, 1, upper pipe rams, HCR, Inside manual choke, lower Kelly valve and blind rams from 250psi low to 3500psi high. Test annular to 250psi low 2500psi high. Continue testing blind rams, super choke and manual choke. Finish testing and rig down testing equipment and blow down lines. Monitor well (static). Continue to pullout of the hole to 644' at report time. Hilcorp Alaska, LLC K-10 RD2 October 21, 2016 The rig continued to trip out of the hole while checking tool faces and threads and lay down the BHA. Make up BHA number 7, trip into the hole to 645' and test MWD tools. Slip and cut 100' of drill line then continue into the hole filling drill pipe at 3166' and 6316'. Lose displacement at 5314', monitor hole (static), continue in hole at slower rate (30 fpm). Service the rig then continue in hole to 6885' getting full displacement and capacity. 6bbls over calculated displacement at the end of tour. October 22, 2016 The rig continued to trip into the hole at 30 fpm. Orientate BHA at stand 124 to go through window. Trip in hole from 8397' to 8554' and ream to 8586' then circulate bottoms up and work pipe. Calculated displacement 9.06 bbls actual 10.68bbls. The rig reamed from 8586' to 8696' and drilled ahead. Continuing to drill ahead at report time. October 23, 2016 The rig continued to drill ahead as per the directional driller. Circulate bottoms up and short trip at 9466' to 8902'. Pull through tight spot at 8849' with 25k over pull. Wash down from 9409' to 9466' and continue drilling ahead. Obtain slow pump rates at 9560' then continue drilling ahead. Circulating while repairing mud pump number 2 at report time. October 24, 2016 The rig continued to troubleshoot pump 2 while prepping high viscosity sweep. Pump sweep to clean hole, returns 30% more cuttings. Break top drive off stump, make up on stand 149, orient tools and continue drilling. Swivel pack began leaking so the rig short tripped to 9812', repair/replace washpipe and service top drive. Continue drilling to 10413', check for flow (static), circulate bottoms up and short trip out of hole to 9344'. Trip back into hole, pump high viscosity sweep and continue drilling ahead. October 25, 2016 The rig continued to drill ahead to 10668' as per directional driller. Repaired leaking hydraulic line on HPU return. Continue drilling ahead to 11047' as per directional driller. HPU number two down, melted wire on exhaust manifold. Circulate and work pipe while repairing HPU. Resume drilling to 11102'. Circulate while replacing seat on mud pump number two. Perform short trip to 10348' while repairing pump. Repairing pump and tripping back in hole at report time. October 26, 2016 Continue Tripping into the hole and wash to bottom. The rig checked the well for flow (static). Continue to drill ahead as per directional driller. Obtain slow pump rates at 11270' and continue drilling ahead. Troubleshoot MWD tools at report time. October 27, 2016 The rig continued to troubleshoot the MWD, unable to read tool face. Pump sweep and circulate until it returns. Check for flow, dropped 2" static. Pump dry job and pull out of hole to 10038'. Stop to check well and stop hole fill to drop fluid in riser for BOP test. Trip out to 8335', monitor well (static). Rig up for BOP test and begin testing. Test top pipe rams, dart valve, TIW valve, IBOP, manual IBOP, DEMCO/outside/inside on kill line, HCR/manual on choke line, all choke manifold valves, bottom pipe rams and blind rams at 250psi low to 3500psi high. Test super choke and manual choke at 1500psi. Rig down BOP testing equipment and continue working on mud pump number 1 at report time. CANRIG Hilcorp Alaska, LLC K-10 RD2 October 28, 2016 The rig continued to cut and slip drill line, cut approximately 180', set and calibrated weight indicators. Repair rig with automated rig techs, change out pulsation dampener on mud pump number 2. Change out shaker screens and take on rig fuel. Troubleshoot top drive extend while continuing to service mud pumps. Trip in hole from 8240' to 8523'. Condition mud and circulate, purge mud pumps 1 and 2. Attempt to communicate with MWD tools. Circulate while mixing a dry job, shut down and check for flow (static), pump dry job and pull out of hole. Laying down BHA at report time. October 29, 2016 Finish Laying down BHA and downloading memory data. Pick up new BHA as per directional driller and begin running in hole. Shallow test MWD (good). Top drive elevator spudded stands in the derrick, secured area, pick up top drive, secured stand in elevator, pick up stand with lifting eye, racked stand back in derrick. Inspect top drive and derrick. Change out power elevators to manual elevators. Repair top drive. Continue running into the hole to 2336' at report time. October 30, 2016 The rig continued running into the hole breaking circulation at 3029', 5991' and 8387'. Once at the shoe they oriented the MWD tools to the high side to enter the window. Run in hole to 8724' where resistance was met. Set 12K down with a pick up of 120K to break loose. Took 3 attempts to pass. Continue running in hole washing last two stands down to bottom. Drilling ahead as per directional driller at report time. October 31, 2016 Continue drilling ahead as per directional driller while troubleshooting auto driller. Circulate bottoms up at 11919' MD and prep for a short trip. November 1, 2016 The rig finished circulating bottoms up then short tripped out to 11545', checked for flow (static), then ran back to bottom. Drill to 12047' then service the rig. Continue drilling as per directional driller. November 2, 2016 The rig continued drilling ahead as per directional driller. MAD pass over 12298'-12327' and continue drilling ahead at report time. November 3, 2016 The rig continued drilling ahead to 12379', pumped a high viscosity sweep then circulated bottoms up. Monitor well (static) pump dry job and begin tripping out of the hole. Trip out of hole to 8383 with a tight spot at 8925' and back ream through it. Shut down for rig service before pulling out to 6564 and rig up BOP testing equipment. Testing BOP at report time. November 4, 2016 Finished testing BOPs, rig down testing equipment and drain stack. Continue tripping out of hole, lay down BHA and 6 joints of HWDP. Pick up BHA #9, shallow test tools and run into the hole. November 5, 2016 The rig continued running into the hole to 7504' while filling pipe every 3000'. Pick up and single in with 28 joints to 8391'. Orient MWD tools to high side to enter window and trip in hole to 8829'. Circulate while slipping and cutting 150' of drill line. Continue running in hole to 12306'. Wash to bottom and continue drilling ahead per directional driller. CANRIG Hilcorp Alaska, LLC K-10 RD2 November 6, 2016 The rig continued drilling ahead as per the directional driller. Pump high viscosity sweep at 12786' and it came back at 860bbls. Monitor well and pull out of hole for short trip to 12364'. Run back into hole and continue drilling ahead as per directional driller. November 7, 2016 The rig continued drilling ahead as per the directional driller to 12882'. Picked up off bottom and circulated while dealing with a power outage across the platform. After getting power back online they continued drilling ahead to 13051' at report time. November 8, 2016 The rig continued drilling ahead as per the directional driller to 13153'. Pump high viscosity sweep while rotating and reciprocating. Pump 1645 bbls total and monitor well (minimal loss). Troubleshoot break and lay down 3 singles. Change out saver sub and dies. Pull out of hole, over pulling by 40k at 8828'. Attempt with just pump and ream clean. Continuing to pull out of hole at report time. November 9, 2016 The rig pumped a dry job and continued to pull out of the hole. Swap power from rig to platform and lay down BHA #9. Download memory data and pick up BHA #10. Upload tools, rebuild suction rubbers. Shallow test MWD test. Install nuclear sources and monitor well (-0.25bbls). Trip in hole to 3000' and stop to adjust top drive torque. November 10, 2016 The rig continued to trip into the hole while filling pipe every 3000'. Pick up 28 joints from 5773' to 6656'. Adjust torque and troubleshoot phantom reading on top drive. Continue tripping in to a tight spot at 12745'. Pump through and ream clean from 12745' to 12765'. Encountered tight spots again at 13043 and ream clean from 13000' to 13063'. Ream and wash down from 13063' to 13153'. Drill ahead per directional driller. TD called at 13233' and began MAD passing out of hole. November 11, 2016 The rig continued to MAD pass out of hole from 13050 to 12996. Change out swivel packing after continued leakage. Change pop off on mud pump number 2. Continue MAD passing to 12842. Break tongs quit working and make tongs would not release, troubleshoot PLC hydraulics for tong rams. Change fuse in PCL panel. Continue MAD pass to 11400 then pump high viscosity sweep. Sweep back at 792bbls. Grease choke manifold. Drop gyro and chase with 5 bpm at 1130 psi. Increase to 6 bpm @ 2200psi. MWD observed 75psi increase. Pump dry job and pull out of hole to 8395' with the gyro checking depths every stand. Monitor well for 15 mins (-0.50 bph). Rig up to test BOP and begin testing. November 12, 2016 The rig continued test BOPs. Test plug rubber failed during test #4, the stack was drained and the rubber was replaced. The rig redid test #4 and continued testing the rest of the BOPs. Once finished, drained the stack and rig down testing equipment. Filled the hole with 9.55bbls, performed rig service while monitoring the well (1" drop in five minutes). Began tripping out of the hole with gyro to 913' while laying down 29 joints. Trip back in hole, as per gyro personnel, to 1297'. Slip and cut 140' of drill line. Pull back out of the hole and lay down BHA. November 13, 2016 Continue laying down BHA and download data from tools. Make up test joint assembly, land test plug with casing values, lock down 4 lock downs. Fill riser with one bbls of water to check O-ring on test plug. Change 2-7/8 x 5-'/z lower rams to 7-5/8" rams. Fill stack with water, work air out of BOPs. Test BOPs, drain stack and rig up to run 7-5/8" casing. Run casing to 2847', Kelly up and circulate 56 bbls total. Continue running into the hole with casing to 3857'. CANRIG Hilcorp Alaska, LLC K-10 RD2 November 14, 2016 Continue running in hole with 7 5/8" liner to 5016.53'. Swap elevators and make up packer assembly. Rig down power tongs and air slips. Mix packer fluid and let set 30 minutes. Kelly up and pump liner volume (230 bbls). Continue to circulate liner volume, install wiping rubber. Trip in hole 4 stands of HWDP at 30' per minute. Rabbit HWDP out of derrick, trip in hole with 14 joints of HWDP, rabbit in v -door from 5114' to 5785'. Rabbit pipe out of derrick and continue tripping in hole with liner to 8307'. Stage up pumps. Pick up and make up cement head then lay back down. Check DW and top drive bolts. Trip into hole to stopping to circulate at 9600', 11640' and 12214' Continue tripping in hole at report time. November 15, 2016 Rabbit pipe out of derrick, trip into hole to 12971. Pull wipe rubber. Kelly up on stand 115 and wash to 13034. Kelly up again on stand 117 and wash to 13160. Make up 4.53' PUP on top of stand 117. Kelly up on stand 118 and wash to 13195'. Started to pack off, worked pipe. Wash to 13211 and call bottom. Work pipe and establish pump rate trends. Continue circulating bottoms up while working pipe and establish a 3-5 bpm circulate rate (1.8 bph loss). Lay down one joint of drill pipe, make up 15' PUP joint on bottom of cement head and Kelly up on cement head and stump. Break circulation and step up pump to 4 bpm. Make up wash line to cuttings tank and high pressure hose to cement head manifold. Reciprocate from 13192' to 13174', circulate stage from 93-165gpm. SLB troubleshoot data problems. Test cement lines at 500-4000psi. Pump 24.7 bbls mud push, chase with 3 bbls mud, pump 61.5 bbls of cement, launch plug, chase with 45 to catch up, seen latch and 92bbls pumped. Continue circulate and bump plug at 313.3 bbls pumped. Check floats (good), slack off to 20K. Pressure up to 3000 with mud pump one. Shut in pumps and continue to pump up to 4200 psi with test pump. Bleed, slack off to 20K, (P/U 90K break over) slack off 20K to no go. ►:ice Hilcorp Alaska, LLC K-10 RD2 3 GEOLOGICAL DATA 3.1 Lithostratigraphy Tops picked by Canriq Geoloqists FORMATION PROGNOSED ACTUAL MD ft TVD ft SSTVD ft MD ft TVD ft SSTVD ft KOP 8,400 6,101 -5,979 8,445 6,131 -6,009 COAL39 11,386 8,711 -8,589 11,348 8,673 -8,551 G7ST 11,760 9,012 -8,890 11,734 8,986 -8,864 H1X FW 11,905 9,123 -9,001 11,898 91112 -8,990 COAL59 11,918 9,133 -9,011 11,906 9,118 -8,996 HTKE-FW 11,934 9,145 -9,023 11,918 9,127 -9,005 HK2T 12,037 9,222 -9,100 12,031 9,211 -9,089 HK3T 12,188 9,325 -9,203 12,130 9,278 -9,156 HK4T 12,371 9,427 -9,305 12,327 9,393 -9,271 HK5T 12,491 9,481 -9,359 12,417 9,438 -9,316 HK6T 12,667 9,540 -9,418 12,564 9,536 -9,414 HK7T 13,035 9,622 -9,500 12,851 9,589 -9,459 West Foreland N/A N/A N/A 12,974 9,620 -9,498 3.2 Lithology Details Lithology descriptions of all Kenai Group and Mesozoic rock cuttings samples started immediately after drilling out the surface conductor, then continued as per pre-set plans and procedures, and modified when directed by the Hilcorp operations geologist. The Kenai Group of Alaska's Cook Inlet Basin, which includes the Sterling, Beluga, Tyonek, Hemlock and West Foreland Formations, was deposited by a variable -energy fluvial system within a large closed fore - arc basin. The characteristic sedimentary stratigraphy consists of dominant massive to thinly bedded sandstone and claystone-siltstone, generally abundant thin interbeds of air fall and re -deposited volcanic ash, minor beds of basal or modal conglomerate and extensively -distributed thin beds of coal and carbonaceous rocks. Gradational upward -fining sequences and bi-modal distribution zones are abundant within sandstone sections. Note that in Canrig's Lithology Descriptions, the special modifying term "tuffaceous" was created to address the pervasive presence and diversity of soft -sediment volcanogenic- origin rocks in the Cook Inlet area. Though generally applied to significantly ash -rich clay -silt -sand lithologies, its wide use in descriptions may include discernible micro -shard concentrations of disaggregated volcanic glass to vitric air fall volcanic ash to smectite-bentonite clays derived from devitrified ash to rare layers of vitric ignimbrite. 10 CANRIG Hilcorp Alaska, LLC K-10 RD2 3.2.1.1 Tyonek Formation The Tyonek formation is a series of alternating tuffaceous sandy siltstones, tuffaceous siltstones, sand and clay with occasional coal and carbonaceous shales. The tuffaceous siltstones are typically medium gray with pale brown and olive hues to medium dark gray with pale olive to very pale brown hues. They are easily friable to friable with a crumbly to pulverulent tenacity and often display bit curled to a rare platy cuttings habit. Typically have a dull to earthy luster with a silty to gritty texture and have a massive structure The sands are typically medium gray to medium gray with pale olive hues to yellowish brown to grayish brown. Grain size is typically lower medium to lower fine to occasionally lower coarse and trace 2-4mm grains. They are typically sub rounded to rounded to sub angular with moderate to poor sorting and are sub spherical to trace sub discoidal. The sands are typically comprised of translucent smoky gray to transparent quartz and trace lithics. Ranges from unconsolidated to easily friable to trace amounts of firm clasts. The coals are typically black to very dark gray to occasionally matte black. They display brittle to crumbly to dense tenacity with hackly to conchoidal to irregular fracture. They usually display flakey to an occasional wedgelike cuttings habit. Luster is often vitreous to earthy to slightly waxy with a matte texture. 8845' to 11919' MD -6009' to -9005' TVDSS Carbonaceous Siltstone (8445' - 8482') = dark to medium dark gray to black; minor sub bituminous coal and trace sands; over all samples are 40% cement and have anywhere from 7% - 3% metal shavings. Carbonaceous Siltstone (8482' - 8520') = medium dark gray to dark gray to black; easily friable; poor induration; crumbly tenacity; earthy fracture; massive cuttings habit; earthy luster; gritty to silty texture; massive structure; samples highly contaminated with mud product. 11 CANRIG Drill Rate (ft/hr) I Total Gas (units) Maximum Minimum Avera2e Maximum Minimum Average 258 1 75.3 876 d 5 44 Gas Peaks MD Depth TVD Depth TG C1 C2 C3 C41 C4N C51 C5N 8739 6342 90 21445 8975 6531 133 30863 9016 6565 56 12416 9238 6758 59 13263 9294 6809 273 13263 9370 6878 156 36470 9507 7004 239 55899 9710 7191 193 44565 9877 7344 876 191405 9941 7403 299 66910 10152 7596 153 36301 10259 7694 277 63969 10383 7807 102 23651 10601 8005 168 39729 Carbonaceous Siltstone (8445' - 8482') = dark to medium dark gray to black; minor sub bituminous coal and trace sands; over all samples are 40% cement and have anywhere from 7% - 3% metal shavings. Carbonaceous Siltstone (8482' - 8520') = medium dark gray to dark gray to black; easily friable; poor induration; crumbly tenacity; earthy fracture; massive cuttings habit; earthy luster; gritty to silty texture; massive structure; samples highly contaminated with mud product. 11 CANRIG _, Hilcorp Alaska, LLC K-10 RD2 Sand / Sandstone (8520' - 8580') = medium gray to medium light gray with yellowish gray sub hues; lower medium to upper fine; sub angular to sub round; moderate sorting; unconsolidated; texturally immature; quartz, translucent or transparent with frosting; tuffaceous siltstone, easily friable, crumbly tenacity, earthy fracture, massive cuttings habit, earthy luster, silty texture, massive structure, samples highly contaminated with mud product. Sand / Sandstone (8580' - 8640') = medium light gray to light gray to dark gray with brown and black hues; lower medium to upper fine, sub rounded to sub angular; moderate to poor sorting; unconsolidated to friable; quartz dominated; minor coal and carbonaceous siltstone. Sand / Coal (8640'- 8690') = medium light gray to medium gray with pale brownish yellow hues; lower medium to upper fine; quartz dominated; coals are vitreous to matte black; hackley to splintery; trace visible off gassing. Tuffaceous Siltstone / Sand (8690' - 8800') = dark gray to medium dark gray, slight light olive gray sub hue; friable to moderately hard; moderate induration; crumbly to brittle tenacity; irregular fracture; massive cuttings habit; earthy to dull luster; silty to gritty texture; massive structure; sand, translucent or transparent, lower medium to upper medium with some lower coarse and upper fine, spherical to sub discoidal, sub angular to sub rounded, moderately well to well sorted, unconsolidated, quartz; coal, black, friable, brittle tenacity, irregular fracture, elongated cuttings habit, dull luster, matte texture, massive structure; porosity and permeability visually good. Sand (8800' - 8880') = medium gray to medium light gray with yellowish gray sub hue; upper fine to lower medium with occasional lower fine or upper medium; spherical to sub discoidal; sub angular to sub rounded; moderately well sorted to moderately sorted; unconsolidated; texturally immature; compositionally sub mature; quartz, translucent or transparent with grain frosting; tuffaceous siltstone, coal; porosity and permeability visually good; highly contaminated with NAF. Tuffaceous Siltstone (8880' - 8960') = medium gray to medium dark gray with olive gray to slight light olive gray sub hues; friable to easily friable; crumbly to brittle tenacity; earthy fracture; massive cuttings habit, with occasional PDC bit curled cutting; earthy to dull luster; silty to gritty texture; massive structure; sand, conglomeritic sand„ coarse or lower medium / upper fine, spherical to sub discoidal to sub prismoidal, moderate sorting, texturally immature, quartz, translucent or transparent, frosted; highly contaminated with NAF. Coal (8960' - 8990') = black to grayish black; brittle to dense tenacity; splintery to irregular fracture; elongated or massive cuttings habit; earthy to dull luster; matte texture; massive structure. Tuffaceous Siltstone / Sand (8890' - 8975') = medium gray with pale brown and olive hues to medium dark gray with pale olive to very pale brown hues; easily friable to friable; crumbly to pulverulent; bit curled cuttings habit to trace platy; dull to earthy luster; silty to gritty texture; massive structure; sands are upper fine to lower medium to lower coarse; unconsolidated to easily friable to trace firm; moderate to poor sorting; sub rounded to sub angular to angular; sub spherical; predominantly quartz with trace dark lithics; moderate amount of coal scattered throughout. Coal (8975' - 8990') = matte to shiny black to very dark gray; brittle to dense to crumbly tenacity; splintery to hackly to irregular fracture; flakey to occasional wedge like cuttings habit; earthy to vitreous luster; trace visible off gassing. 12 CANRIG Hilcorp Alaska, LLC K-10 RD2 Sand / Tuffaceous Siltstone (8990' - 9220) = overall brownish gray to olive gray to dark yellowish brown; lower medium to upper to lower fine to occasionally lower coarse; trace 2-3mm grains; sub rounded to rounded to sub angular; sub spherical to trace sub discoidal; moderate to poor sorting; predominantly translucent smoky gray quartz with trace lithics; unconsolidated to easily friable; moderate tuffaceous siltstone; predominantly medium gray to dark medium gray with pale olive hues; easily friable to friable; crumbly to pulverulent; irregular to semi planar fracture; dull to earthy luster; bit curled to semi platy cuttings habit, silty to gritty texture; no hydrocarbon indicators present. Sand / Tuffaceous Siltstone (9230' - 9360) = overall medium gray to dark medium gray with pale olive and brown hues; lower medium to lower coarse to lower very coarse; unconsolidated to easily friable; sub rounded to rounded to sub angular; sub spherical to trace sub discoidal; poor to moderate sorting; predominantly translucent smoky gray quartz with trace lithics; moderate tuffaceous siltstone; predominantly dark medium gray to medium gray with dark olive to black hues; easily friable to friable; crumbly to pulverulent; irregular to semi planar fracture; dull to earthy luster; bit curled to semi platy cuttings habit, silty to gritty texture; occasional deformed carbonaceous banding present; minor amount of medium gray, poorly indurated claystone/mudstone-, no hydrocarbon indicators present. Coal (9360' - 9380) = shiny to matte black to very dark gray; brittle to crumbly to dense tenacity; splintery to planar to conchoidal to irregular fracture; flakey to occasional wedge like cuttings habit; vitreous luster; matte texture; massive structure. Sand /Conglomeratic Sand (9380'-9460') = medium light gray to medium gray with light olive gray to olive gray sub hues; upper fine to lower medium with occasional coarse grains; spherical to sub discoidal,- sub iscoidal;sub rounded to sub angular; moderately well to moderate sorting; unconsolidated; texturally immature; quartz, translucent or transparent, frosted; porosity and permeability visually good. Coal / Tuffaceous Siltstone (9460' - 9540') = dark gray to grayish black to black with olive gray to light olive gray sub hues; moderately hard to hard; moderately well indurated; brittle to dense tenacity; splintery to sub conchoidal fracture; massive to flaky to platy cuttings habit; resinous to dull luster; matte texture; massive or thin structure; tuffaceous siltstone, light gray; moderately hard, brittle tenacity, irregular fracture, massive cuttings habit, earthy luster, silty texture, massive structure. Sand / Conglomeratic Sand (9540' - 9610') = medium gray to light gray with light olive gray to yellowish gray sub hue; lower fine to upper fine or coarse to very coarse, bimodal; spherical to sub prismoidal to sub discoidal; angular to sub angular to sub round; poor sorting; friable, matrix, fine sand; matrix supported; texturally immature; quartz, translucent or transparent, frosted; some quartz grains appear to be bit shattered; porosity and permeability visually fair. Sand (9610' - 9690') = medium gray to medium light gray, slight light olive gray sub hue; upper fine to lower fine with occasional coarse; spherical to sub discoidal; moderately well sorted; unconsolidated; texturally immature; quartz, translucent or transparent, grain frosting; pale yellowish orange lithics; porosity and permeability visually fair. Coal / Tuffaceous Siltstone (9690' - 9720') = black to grayish black with olive gray background; moderately hard to hard; moderately well indurated; brittle to dense tenacity; splintery to sub conchoidal fracture; platy to massive cuttings habit; resinous to dull luster; matte texture; massive to thin structure. 13 CANRIG Hilcorp Alaska, LLC K-10 RD2 Tuffaceous Siltstone / Sandstone (9460'- 9850) = dark medium gray to medium gray with pale brown to pale olive hues to occasional dark yellowish brown; crumbly to pulverulent; irregular to earthy to semi planar fracture; tabular to bit curled cuttings habit; dull to earthy luster; silty to gritty texture; the sandstones are typically easily to firmly friable; becomes unconsolidated down through interval; grades from almost a grain supported conglomerate down to an upper fine to lower medium sand at the bottom of the interval; poor to moderate sorting; sub angular to angular to sub rounded near the base; sub spherical to trace sub discoidal; trace bit broken quartz in the upper section; overall predominantly translucent to clear quartz; occasional dark lithics; good to moderate visual porosity and permeability near the base; moderate amount of carbonaceous shale and tuffaceous claystone; no hydrocarbon indicators. Coal (9850' - 9900) = shiny to very dark gray to occasionally matte black; brittle to crumbly to dense tenacity; hackly to conchoidal to irregular fracture; flakey to occasional wedge like cuttings habit; vitreous to earthy to slightly waxy luster; matte texture; semi thick coal beds interbedded with siltstone and sand. Tuffaceous Sandstone / Tuffaceous Siltstone (9900'-10010') = moderate yellowish brown to grayish brown; easily friable to trace firmly friable; upper medium to lower fine; occasional 2-3mm grains; poor to moderate sorting; sub angular to sub rounded; sub spherical; grain supported; poor to moderate visible permeability and porosity; siltstones are medium gray with pale olive hues; poorly indurated; crumbly to pulverulent to trace brittle; irregular to planar to earthy fracture; bit stacked cuttings; dull to earthy luster; gritty to silty texture. Coal (10010' - 10020') = black to gray black; moderately hard; brittle tenacity; splintery to sub conchoidal fracture; elongated or tabular or massive cuttings habit; dull luster; matte texture; thin structure. Tuffaceous Siltstone (10020' - 10080) = medium dark gray to medium gray with slight olive gray sub hue; friable to moderately hard; brittle to dense tenacity; splintery to mottled fracture; massive cuttings habit; earthy to dull luster; silty to gritty texture; massive structure; sandstone, very fine, well sorted, sub rounded, moderate sphericity, friable, silt matrix, matrix supported, quartz. Tuffaceous Siltstone (10080' - 10135')= medium dark gray to medium gray with slight olive gray sub hue; friable to moderately hard; brittle to dense tenacity; splintery to mottled fracture; massive cuttings habit; earthy to dull luster; silty to gritty texture; massive structure. Coal (10135' - 10155') = black to gray black; moderately hard; brittle tenacity; splintery to conchoidal fracture; elongated or tabular or massive cuttings habit; dull luster; matte texture; thin structure. Tuffaceous Siltstone (10155' - 10245') = medium dark gray to medium gray with slight olive gray sub hue; friable to moderately hard; brittle to dense tenacity; splintery to mottled fracture; massive cuttings habit; earthy to dull luster; silty to gritty texture; massive structure; tuffaceous sandstone / sand, upper fine to lower medium, occasional upper coarse, spherical to sub discoidal, sub round to sub angular, moderate to moderately well sorted, friable or unconsolidated, matrix supported, silt matrix, quartz, translucent or transparent. Coal (10245' - 10265) = black to gray black; moderately hard; brittle tenacity; splintery to sub conchoidal fracture; elongated or tabular or massive cuttings habit; dull luster; matte texture; thin structure. Sand / Sandstone (10265' - 10335') = medium gray to medium light gray with olive gray and yellowish gray sub hues; lower medium to upper fine; spherical to sub discoidal; sub rounded to sub angular; well to moderately well sorted; friable or unconsolidated; silty matrix; matrix supported; texturally immature; compositionally sub mature; quartz, translucent or transparent; black lithics; porosity / permeability visually fair. 14 CANRIG Hilcorp Alaska, LLC K-10 RD2 Tuffaceous Siltstone (10335' - 10400') = medium dark gray to medium gray with slight olive gray sub hue; friable to moderately hard; brittle to dense tenacity; splintery to mottled fracture; massive cuttings habit; earthy to dull luster; silty to gritty texture; massive or thin structure; carbonaceous material with in siltstone. Sandy Siltstone (10400' - 10480') = brownish gray to medium gray with pale olive and brown hues to moderate yellowish brown; crumbly to pulverulent to trace tough; earthy to irregular to planar fracture; bit stacked cuttings; dull to earthy luster; gritty to silty texture; occasional deformed carbonaceous banding; minor amount of unconsolidated sand; upper fine to lower coarse; sub angular to sub rounded to angular; poor to moderate sorting; sub spherical; translucent to clear quartz; no hydrocarbon indicators present. Tuffaceous Sandstone / Siltstone (10480' - 10620') = dark yellowish brown to grayish red to medium gray with pale brown and olive hues; easily friable to unconsolidated to trace firm; lower to upper medium to upper fine with lower fine and lower coarse common; moderate to poor sorting; sub rounded to sub angular to rounded; sub spherical to trace sub discoidal; typically grain supported; moderate to poor visible porosity and permeability; predominantly clear to translucent quartz; carbonaceous sediment common and trace dark lithics; the siltstones are typically crumbly to pulverulent to trace tough; planar to irregular fracture; bit stacked to platy cuttings; silty to gritty texture; dull to earthy luster; minor deformed carbonaceous banding; no hydrocarbon indicators present. Tuffaceous Sandstone / Siltstone (10620' - 10710') = dark yellowish brown to pale yellowish orange to medium gray with slight light olive gray sub hues; upper fine to upper medium with lower fine and lower coarse; spherical to sub discoidal; sub rounded to sub angular; moderately well to moderate sorting; friable; silt matrix; texturally immature; compositionally sub mature; quartz, translucent or transparent, siltstone, friable to easily friable, crumbly to brittle tenacity, irregular fracture, massive sub rounded cuttings habit, earthy to dull luster, silty texture, massive or laminae structure laminae is carbonaceous; no hydrocarbon indicators. Tuffaceous Sandstone (10710' - 10840') = dark yellowish brown to pale yellowish orange to medium gray with slight light olive gray sub hues; upper fine to upper medium with lower fine and upper medium occasional coarse, spherical to sub discoidal; sub rounded to sub angular; moderately well to moderate sorting; friable; silt matrix; texturally immature; compositionally sub mature; quartz, translucent or transparent; siltstone, friable to easily friable, crumbly to brittle tenacity, irregular fracture, massive sub rounded cuttings habit, earthy to dull luster, silty texture, massive or laminae structure laminae is carbonaceous; coal, black, sub bituminous, moderately hard, brittle to dense tenacity, splintery to conchoidal fracture, elongated or massive cuttings habit, dull or resinous luster, matte texture, massive structure; no oil indicators. Tuffaceous Sandstone / Sand (10840' - 10860') = medium gray to medium light gray, slight light olive gray with pale yellowish orange; upper very fine to lower very fine; spherical to sub discoidal; sub round to sub angular; well sorted; friable; tuffaceous matrix; grain supported; texturally immature; compositionally sub mature; quartz, translucent or transparent; black lithics; show: no odor, no stain, 10% patchy dull bright yellow, very slow yellow streaming cut, no visible cut, no residual cut, very, very faint residual fluorescence, very poor show. Tuffaceous Siltstone / Claystone / Sandstone (10860' - 11010') = medium light gray to medium gray to medium dark gray with olive gray to light olive gray sub hues and occasional pale yellowish orange hues; firm friable to hard; moderate to well indurated; brittle to dense to crumbly tenacity; earthy to open fracture; massive cuttings habit; earthy to dull luster; silty to clayey to gritty texture; massive structure; sandstone, very fine, spherical, sub rounded to sub angular, well sorted, friable, silt matrix, grain supported, texturally sub mature, quartz; sandstone is almost a siltstone and siltstone is almost a sandstone; no hydrocarbon indicators present. 15 CANRIG Hilcorp Alaska, LLC K-10 RD2 Tuffaceous Sandstone (11010' - 11110') =dark yellowish brown to grayish brown to medium gray with yellowish brown hues; easily friable to unconsolidated to trace firmly friable; lower coarse to upper fine; moderate to poor sorting; sub angular to angular to sub rounded; sub spherical to occasional sub discoidal; dominated by translucent to clear quartz; moderate to poor visible porosity and poor permeability; tuffaceous siltstone and claystone common but not abundant; poorly indurated; crumbly; planar to irregular to earthy fracture; bit stacked to platy cuttings habit; dull to earthy luster; silty to gritty texture; trace deformed carbonaceous banding; minor amount of sub bituminous coal; no hydrocarbon indicators. Tuffaceous Sandstone / Siltstone (11110' - 11205') = light gray to medium light gray with light olive gray to olive gray sub hue; upper very to lower fine with occasional medium grain; spherical to sub discoidal; sub rounded to sub angular; moderately well to moderate sorting; friable or unconsolidated; tuffaceous matrix; matrix supported; texturally immature; quartz, translucent or transparent, frosted; black lithics; no hydrocarbon indicators. Tuffaceous Sandstone / Siltstone (11205' - 11280') = light gray to medium light gray with light olive gray to olive gray sub hue; medium to fine to coarse grains; spherical to sub discoidal; sub angular to sub rounded to angular; poor moderate sorting; friable to unconsolidated; tuffaceous / silty matrix; grain supported; texturally immature; compositionally sub mature; quartz, translucent or transparent, frosted, some quartz bit shattered; black lithics; no hydrocarbon indicators present. Tuffaceous Sandstone / Sand (11280'- 11400') = dark yellowish brown to grayish brown to medium gray with pale olive hues; predominantly easily friable to unconsolidated; lower coarse to upper fine with upper coarse and upper very fine common; poor to moderate sorting; sub angular to angular to sub rounded; sub spherical to occasional sub discoidal; dominated by translucent to clear quartz; moderate to poor visible porosity and poor permeability; bit broken quartz grains common; occasional calcareous clasts with moderate to very reactive to diluted HCI; minor amount of tuffaceous siltstone; poorly indurated,- crumbly- ndurated;crumbly; irregular to planar to earthy fracture; dull to earthy luster; bit stacked to platy cuttings habit; gritty to silty texture; trace very weak yellow gold fluorescence on less than 1 % of sample; no visible fluorescence cut, no hydrocarbon odor. Coal (11400' - 11430') = black to dark grayish black; brittle tenacity; splintery to sub conchoidal fracture; elongated to tabular cuttings habit; dull luster; matte texture. Tuffaceous Sandstone (11430'-11540') = dark yellowish brown to grayish brown to medium gray with pale olive hues; easily friable to unconsolidated to trace firmly friable; upper to lower medium to upper fine and lower coarse; moderate to poor sorting; sub angular to sub rounded to occasionally angular; moderate visual porosity and permeability; dominated by translucent to clear quartz; moderate carbonaceous shale and coal seen throughout; minor tuffaceous siltstone; ¶ Tuffaceous Sandstone (11540'-11620') = grayish brown to dark yellowish brown to medium gray with pale olive hues; easily friable to unconsolidated to trace firmly friable; lower medium to upper fine with upper medium to lower coarse being common; moderate to poor sorting; sub angular to sub rounded to angular; dominated by translucent to clear quartz; minor tuffaceous siltstone and claystone; no hydrocarbon indicators. Tuffaceous Sandstone (11620' - 11700') = medium gray to medium light gray with light grayish brown and pale olive sub hues; upper fine to lower fine with coarse grains progressing to lower medium to upper fine with coarse grains; spherical to sub discoidal; sub rounded to sub angular to angular, coarse grains tend to be angular; moderately well to moderately sorted; friable to unconsolidated; grain supported; texturally immature; compositionally sub mature; quartz, translucent to transparent with some frosting; black lithics; porosity and permeability visually fair; no hydrocarbon indicators. 16 CANRIG Hilcorp Alaska, LLC K-10 RD2 Coal / Tuffaceous Siltstone (11700' - 11740') =coal, black, sub bituminous, hard, dense tenacity, conchoidal or splintery fracture, elongated cuttings habit, dull or resinous luster, matte texture, massive structure; siltstone, dense tenacity, irregular fracture, massive cuttings habit, earthy luster, silty texture, massive structure. 17 CANRIG Hilcorp Alaska, LLC K-10 RD2 3.2.1.2 Tyonek G7 11734' to 11850' MD -8864' to -8953' TVDSS Tuffaceous Sandstone (11740' - 11800') = olive gray to light olive gray with medium gray and dark greenish 0000 gray sub hues; upper fine to lower medium with occasional coarse grain; moderate to poor sorting; sub angular to sub rounded to angular; sub spherical; easily 1000 friable to soft to unconsolidated; grain supported; dominated by translucent to clear quartz; no hydrocarbon indicators. a 100 Pixler Plot Tuffaceous Sandstone (11800' - 11870') = olive gray 10- to light olive gray with medium gray and dark greenish -- gray sub hues to dark yellowish brown; lower medium to upper fine to lower coarse grained; poor to moderate 1 2 sorting; sub angular to angular to sub rounded; sub CLC2 C1,C3 spherical; easily friable to soft to unconsolidated; grain supported; dominated by translucent to clear quartz; no hydrocarbon indicators. C„C4 C„C5 Coal (11870' - 11920') = black to dark grayish black; brittle tenacity; splintery to sub conchoidal fracture; elongated to tabular cuttings habit; dull luster; matte texture; minor amount of tuffaceous siltstone and unconsolidated sand. 18 CANRIG Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Avera e 98 3 36 25 7 17 Gas Peaks MD Depth TVD De th TG C1 C2 C3 C41 C4N C51 C5N 11755 9002 25 4739 251 154 28 29 11809 9044 16 2601 203 93 11809 9044 11844 9070 24 4052 328 162 0 35 Tuffaceous Sandstone (11740' - 11800') = olive gray to light olive gray with medium gray and dark greenish 0000 gray sub hues; upper fine to lower medium with occasional coarse grain; moderate to poor sorting; sub angular to sub rounded to angular; sub spherical; easily 1000 friable to soft to unconsolidated; grain supported; dominated by translucent to clear quartz; no hydrocarbon indicators. a 100 Pixler Plot Tuffaceous Sandstone (11800' - 11870') = olive gray 10- to light olive gray with medium gray and dark greenish -- gray sub hues to dark yellowish brown; lower medium to upper fine to lower coarse grained; poor to moderate 1 2 sorting; sub angular to angular to sub rounded; sub CLC2 C1,C3 spherical; easily friable to soft to unconsolidated; grain supported; dominated by translucent to clear quartz; no hydrocarbon indicators. C„C4 C„C5 Coal (11870' - 11920') = black to dark grayish black; brittle tenacity; splintery to sub conchoidal fracture; elongated to tabular cuttings habit; dull luster; matte texture; minor amount of tuffaceous siltstone and unconsolidated sand. 18 CANRIG Hilcorp Alaska, LLC K-10 RD2 3.2.1.3 Hemlock Formation The Hemlock formation is comprised mainly of conglomeratic and tuffaceous sandstone with occasional tuffaceous siltstones and trace coal beds. The tuffaceous sandstones are often medium gray to medium dark gray with a slight light olive gray to olive gray. Grain size is typically lower fine to upper fine with occasional coarse grading to lower medium to upper medium and occasional coarse. Often spherical to sub discoidal with sub rounded to rounded, rare sub angular grains. Typically well to moderately well sorted and often friable or unconsolidated. Overall the clasts have a tuffaceous matrix and are grain supported. They appear to be texturally sub mature to immature and dominated by translucent or transparent quartz with pitted or etched facies. Mafic and green lithics are also semi common. The conglomeratic sands observed are typically medium dark gray to medium gray with pale olive to moderate brown to black secondary hues. They are unconsolidated to easily friable with lower medium to upper fine grains and 3-5mm bit broken quartz grains being semi common. Often display poor to moderate sorting, sub angular to sub rounded to angular with sub spherical to trace sub discoidal sphericity. The tuffaceous siltstones can often grade to a sandy siltstone and are typically poorly indurated. Overall tenacity ranges from crumbly to brittle with an irregular to earthy fracture. Cuttings are commonly "bit stacked to slightly tabular with a dull to earthy luster and a silty to gritty texture. Carbonaceous banding is common but not abundant 3.2.1.4 Hemlock HTK-FW / HK1T 11918' to 12031' MD (-9005' to -9089' TVDSS) Tuffaceous Sandstone / Sand (11920' - 12250') _ medium gray to medium dark gray, slight light olive gray to olive gray; lower fine to upper fine with occasional coarse grading to lower medium to upper medium with occasional coarse; spherical to sub discoidal; sub rounded to rounded, rare sub angular; well to moderately well sorted; friable or unconsolidated; tuffaceous matrix; grain supported; texturally sub mature; texturally immature; quartz, translucent or transparent, pitted or etched; mafic and green lithics; show: no odor, no stain, 10% patchy dull yellow sample fluorescence (difficult to distinguish above NAF drilling fluid), streaming bright cut fluorescence, no visual cut, light brown visual residual cut, faint dull yellow residual fluorescence, show is difficult to distinguish from NAF (oil based) drilling fluid. MM ILM E 1CC Pixler Plot z 3 io Drill Rate ft/hr Total Gas units Maximum Minimum Average Maximum Minimum Average 124 2 31 31 11 22 Gas Peaks MD Depth TVD De th TG C1 C2 C3 C41 C4N C51 C5N 11935 9140 30 5160 335 201 40 11950 9151 29 4749 348 214 45 11968 9165 36 6158 425 266 29 71 Tuffaceous Sandstone / Sand (11920' - 12250') _ medium gray to medium dark gray, slight light olive gray to olive gray; lower fine to upper fine with occasional coarse grading to lower medium to upper medium with occasional coarse; spherical to sub discoidal; sub rounded to rounded, rare sub angular; well to moderately well sorted; friable or unconsolidated; tuffaceous matrix; grain supported; texturally sub mature; texturally immature; quartz, translucent or transparent, pitted or etched; mafic and green lithics; show: no odor, no stain, 10% patchy dull yellow sample fluorescence (difficult to distinguish above NAF drilling fluid), streaming bright cut fluorescence, no visual cut, light brown visual residual cut, faint dull yellow residual fluorescence, show is difficult to distinguish from NAF (oil based) drilling fluid. MM ILM E 1CC Pixler Plot z 3 io Hilcorp Alaska, LLC K-10 RD2 3.2.1.5 Hemlock HK2T 12031' to 12123' MD (-9089' to -9156' TVDSS) Tuffaceous Sandstone / Sand (12050' - 12150') = dark medium gray to medium gray with pale brown to light olive hues; lower fine to upper fine with lower medium to upper coarse somewhat common; sub 0000 spherical to sub discoidal; sub rounded to rounded with occasional angular, bit broken grains; well to moderate 1000 sorting; easily friable to unconsolidated; tuffaceous matrix; grain supported; good to moderate visual porosity and permeability; predominantly translucent to a 100 clear quartz, etching and pitting common; dull yellowish gold fluorescence on <10% of sample; moderate to 10 slow pale white cut; no visual cut; weak yellowish white residual fluorescence; no staining; no odor. LA WL 9 LIV Pixler Plot 1 2 3 4 c1Ic2 cuc3 CVC4 -C5 KIIlj Drill Rate ft/hr Total Gas (units Maximum Minimum Average MaximumMinimum Average 88 1 26 25 10 16 Gas Peaks MD Depth TVD De th TG C1 C2 C3 C41 C4N C51 C5N 12038 9216 26 4085 297 179 39 12081 9246 18 2355 233 86 30 12108 9264 20 1 3100 263 90 20 Tuffaceous Sandstone / Sand (12050' - 12150') = dark medium gray to medium gray with pale brown to light olive hues; lower fine to upper fine with lower medium to upper coarse somewhat common; sub 0000 spherical to sub discoidal; sub rounded to rounded with occasional angular, bit broken grains; well to moderate 1000 sorting; easily friable to unconsolidated; tuffaceous matrix; grain supported; good to moderate visual porosity and permeability; predominantly translucent to a 100 clear quartz, etching and pitting common; dull yellowish gold fluorescence on <10% of sample; moderate to 10 slow pale white cut; no visual cut; weak yellowish white residual fluorescence; no staining; no odor. LA WL 9 LIV Pixler Plot 1 2 3 4 c1Ic2 cuc3 CVC4 -C5 KIIlj Hilcorp Alaska, LLC K-10 RD2 3.2.1.6 Hemlock HK3T 12130' to 12237' MD (-9156' to -9271' TVDSS) Drill Rate ft/hr Total Gas units Maximum Minimum Average Maximum Minimum I Average 66 2 22 34 9 15 Gas Peaks MD Depth TVD Depth TG C1 C2 C3 C41 C4N C51 C5N 12158 9296 34 2535 320 82 12187 9314 26 3950 480 142 29 Tuffaceous Sandstone / Sand (12150' - 12290') = medium gray to medium light gray with light olive gray to pale brown sub hues; lower fine to upper fine with medium and coarse clasts; spherical to sub discoidal to sub spherical; sub rounded to rounded to sub angular with occasional angular; moderately well to well sorted; unconsolidated to friable; tuffaceous silt matrix; grain supported; texturally immature; sub mature compositionally; quartz, translucent or transparent with pitting or etching common, some quartz clasts appear to be bit broken; green and mafic lithics; porosity and permeability visually good to moderate; show: no odor, no stain, 10% dull yellow gold sample fluorescence, slow pale white cut fluorescence; no visual cut, no visual residual cut, light brown residual fluorescence, poor show quality due to LVT. 10000 1000 E 100 10 Pixler Plot 1 2 3 4 �11�2 C„C3 C„C< C1,C5 Tuffaceous Sandstone / Sand (12290' - 12360') = medium gray to light medium gray with brown and olive hues; upper to lower fine with occasional lower medium to lower coarse grains; moderate sorting; sub angular to sub rounded; bit broken quartz common; sub spherical to sub discoidal; good to moderate visual porosity and permeability; ^-10% dull yellowish white fluorescence; moderate to slow pale to moderate milky white cut; dull yellowish gold residual fluorescence; no visual cut, odor or staining. I•A CANRIG i' Hilcorp Alaska, LLC K-10 RD2 3.2.1.7 Hemlock HK4T 12327' to 12417' MD (-9271' to -9316' TVDSS) Sand (12360'-12500') = Medium gray to dark medium gray with dark yellowish brown to pale olive hues; unconsolidated; lower medium to upper fine; occasional lower coarse to upper medium grains; moderate to well sorted; sub rounded to rounded to sub angular; sub spherical to spherical to trace sub discoidal; bit broken quartz semi common; predominantly translucent to clear quartz; minor coal and dark lithics; coal and carbonaceous shale content increases near the base of the interval; trace poorly indurated tuffaceous siltstone; dull patchy golden yellow fluorescence on <5% of sample; no visible cut; moderate bright milky white cut; dull yellowish gold residual fluorescence; no stain or odor. 3.2.1.8 Hemlock HK5T 12417' to 12552' MD (-9316' to -9374' TVDSS) Drill Rate ft/hr I Total Gas units Maximum Minimum Average Maximum Minimum Average 83 104 1.6 2 21 23 8 14 Gas Peaks Gas Peaks MD Depth MD Depth TVD De th TG C1 C2 C3 C41 C4N C51 C5N 12249 9350 26 3607 563 109 187 21 12306 9382 18 2338 373 51 3106 155 81 12348 9404 18 2152 416 42 9480 13 1512 236 Sand (12360'-12500') = Medium gray to dark medium gray with dark yellowish brown to pale olive hues; unconsolidated; lower medium to upper fine; occasional lower coarse to upper medium grains; moderate to well sorted; sub rounded to rounded to sub angular; sub spherical to spherical to trace sub discoidal; bit broken quartz semi common; predominantly translucent to clear quartz; minor coal and dark lithics; coal and carbonaceous shale content increases near the base of the interval; trace poorly indurated tuffaceous siltstone; dull patchy golden yellow fluorescence on <5% of sample; no visible cut; moderate bright milky white cut; dull yellowish gold residual fluorescence; no stain or odor. 3.2.1.8 Hemlock HK5T 12417' to 12552' MD (-9316' to -9374' TVDSS) Sand (12500'-12590') = Dark medium gray to medium gray with brown to olive hues; unconsolidated; upper fine to lower medium grains; sub rounded to rounded to sub angular; moderate sorting; sub spherical to spherical; bit broken quartz common; predominantly translucent to clear quartz; minor coal, tuffaceous siltstone, dark lithics and carbonaceous shale; dull patchy golden yellow fluorescence on <5% of sample; no visible cut; moderate bright milky white cut; dull yellowish gold residual fluorescence; no stain or odor. 22 CANRIG Drill Rate (ft/hr) I Total Gas (units) Maximum Minimum Average Maximum Minimum Average 83 1.6 32 22 6 13 Gas Peaks MD Depth TVD Depth TG C1 C2 C3 C41 C4N C51 C5N 12419 9437 22 4526 187 66 12455 9455 18 3106 155 81 12513 9480 13 1512 236 45 Sand (12500'-12590') = Dark medium gray to medium gray with brown to olive hues; unconsolidated; upper fine to lower medium grains; sub rounded to rounded to sub angular; moderate sorting; sub spherical to spherical; bit broken quartz common; predominantly translucent to clear quartz; minor coal, tuffaceous siltstone, dark lithics and carbonaceous shale; dull patchy golden yellow fluorescence on <5% of sample; no visible cut; moderate bright milky white cut; dull yellowish gold residual fluorescence; no stain or odor. 22 CANRIG Hilcorp Alaska, LLC K-10 RD2 3.2.1.9 Hemlock HK6T 12564' to 12827' MD (-9414' to -9459' TVDSS) Sand / tuffaceous sandstone (12590' - 12720') = medium dark gray to medium gray with light olive gray and grayish orange sub hues; lower fine to upper fine coarsening to medium with depth, occasional very coarse grains; spherical to sub discoidal (fine / medium grains), prismoidal or discoidal (very coarse grains); sub rounded to sub angular to angular; well to moderately well sorted; friable or unconsolidated; silty matrix; matrix supported; texturally immature; compositionally sub mature; quartz, translucent or transparent; green lithics, mafic lithics; show: no odor, no grain stain, <10% patchy golden yellow sample fluorescence, very slow white streaming cut fluorescence, no visual cut, no visual residual cut, dull yellowish gold residual fluorescence, very poor show quality due to Ivt; porosity and permeability visually fair to good. Sand / tuffaceous sandstone (12720' - 12820') = medium gray to medium dark gray with light orange gray and olive gray sub hues; lower medium to upper fine with 2-4mm bit broken quartz fragments semi common; unconsolidated to soft and easily friable; moderate sorting; sub rounded to sub angular to rounded; sub spherical to trace sub discoidal; trace patchy dull gold fluorescence on <5% of sample; no visible cut; slow pale milky white cut; dull gold residual fluorescence; no visible residual cut; no staining; no odor. 23 CANRIG Drill Rate ft/hr Total Gas units Maximum Minimum Average Maximum Minimum I Average 111 1.4 29 22 6 13 Gas Peaks MD Depth TVD De th TG Cl C2 C3 C41 C4N C51 C5N 12579 9506 22 3751 202 121 19 12630 9524 20 2981 323 101 21 12647 9530 23 3722 323 126 25 12659 9534 18 2752 275 94 19 Sand / tuffaceous sandstone (12590' - 12720') = medium dark gray to medium gray with light olive gray and grayish orange sub hues; lower fine to upper fine coarsening to medium with depth, occasional very coarse grains; spherical to sub discoidal (fine / medium grains), prismoidal or discoidal (very coarse grains); sub rounded to sub angular to angular; well to moderately well sorted; friable or unconsolidated; silty matrix; matrix supported; texturally immature; compositionally sub mature; quartz, translucent or transparent; green lithics, mafic lithics; show: no odor, no grain stain, <10% patchy golden yellow sample fluorescence, very slow white streaming cut fluorescence, no visual cut, no visual residual cut, dull yellowish gold residual fluorescence, very poor show quality due to Ivt; porosity and permeability visually fair to good. Sand / tuffaceous sandstone (12720' - 12820') = medium gray to medium dark gray with light orange gray and olive gray sub hues; lower medium to upper fine with 2-4mm bit broken quartz fragments semi common; unconsolidated to soft and easily friable; moderate sorting; sub rounded to sub angular to rounded; sub spherical to trace sub discoidal; trace patchy dull gold fluorescence on <5% of sample; no visible cut; slow pale milky white cut; dull gold residual fluorescence; no visible residual cut; no staining; no odor. 23 CANRIG Hilcorp Alaska, LLC K-10 RD2 3.2.1.10 Hemlock HK7T 12851' to 12962' MD (-9459' to -9495' TVDSS) Tuffaceous siltstone (12820' - 12860') = medium gray to medium light gray; crumbly tenacity; earthy fracture; massive cuttings habit; earthy luster; silty texture; massive structure; carbonaceous material entrained; siltstone almost becomes lower very grained sandstone. Sand / tuffaceous sandstone (12860'- 12920') = lower medium to upper medium with fine and coarse grains; spherical to sub discoidal; sub rounded to sub angular to angular; moderately well to well sorted; unconsolidated or friable; matrix supported; tuffaceous matrix; texturally immature; sub mature compositionally; quartz, translucent or transparent with some pitting; no hydrocarbon indicators; porosity and permeability visually fair. 3.2.1.11 West Foreland Formation 12974' to 13233' (TD) MD (-9498' to -9548' TVDSS) Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Minimum I Average Maximum Minimum Average 25 2 10 3 11 18 5 9 MD Depth TVD Depth Gas Peaks C1 MD Depth TVD Depth TG C1 C2 C3 C41 C4N C51 C5N 12899 9602 15 1801 339 34 12943 9613 18 2268 419 43 Tuffaceous siltstone (12820' - 12860') = medium gray to medium light gray; crumbly tenacity; earthy fracture; massive cuttings habit; earthy luster; silty texture; massive structure; carbonaceous material entrained; siltstone almost becomes lower very grained sandstone. Sand / tuffaceous sandstone (12860'- 12920') = lower medium to upper medium with fine and coarse grains; spherical to sub discoidal; sub rounded to sub angular to angular; moderately well to well sorted; unconsolidated or friable; matrix supported; tuffaceous matrix; texturally immature; sub mature compositionally; quartz, translucent or transparent with some pitting; no hydrocarbon indicators; porosity and permeability visually fair. 3.2.1.11 West Foreland Formation 12974' to 13233' (TD) MD (-9498' to -9548' TVDSS) The West Foreland is comprised of mainly tuffaceous sandstone, tuffaceous siltstone and rare coals. The tuffaceous sandstones are typically medium gray to medium light gray with slight light olive gray sub hues. Grain size is typically lower fine to upper fine with coarse grains. Spherical to sub discoidal sphericity, sub rounded to sub angular, typically moderately well to moderately sorted and unconsolidated or easily friable. Overall it has a tuffaceous matrix and is matrix supported and is made up of quartz grains that are translucent or transparent with pitting The tuffaceous siltstones in this section are medium dark gray to medium gray to medium light gray with light olive gray hues. It is typically firm friable to moderately hard with moderate induration. Brittle to crumbly tenacity with an earthy fracture and has a massive or elongated cuttings habit. Earthy to dull luster; silty to gritty texture and a massive structure. 24 CANRIG Drill Rate ft/hr Total Gas units Maximum Minimum Average Maximum Minimum Average 63 2.2 17.4 18 2 10 Gas Peaks MD Depth TVD Depth TG C1 C2 C3 C41 C4N C51 C5N 13193 9663 18 3781 84 The West Foreland is comprised of mainly tuffaceous sandstone, tuffaceous siltstone and rare coals. The tuffaceous sandstones are typically medium gray to medium light gray with slight light olive gray sub hues. Grain size is typically lower fine to upper fine with coarse grains. Spherical to sub discoidal sphericity, sub rounded to sub angular, typically moderately well to moderately sorted and unconsolidated or easily friable. Overall it has a tuffaceous matrix and is matrix supported and is made up of quartz grains that are translucent or transparent with pitting The tuffaceous siltstones in this section are medium dark gray to medium gray to medium light gray with light olive gray hues. It is typically firm friable to moderately hard with moderate induration. Brittle to crumbly tenacity with an earthy fracture and has a massive or elongated cuttings habit. Earthy to dull luster; silty to gritty texture and a massive structure. 24 CANRIG f J Hilcorp Alaska, LLC K-10 RD2 3.3 SAMPLING PROGRAM Set Type and Purpose Interval Frequency Distribution Debra Oudean Washed and Dried 8445'— 11700' 30' Hilcorp Alaska LLC A Reference 11700'— 13233' 10' 3800 Center Point Drive, Suite 100 Anchorage, AK 99508 Debra Oudean Washed and Dried 8445'— 11700' 30' Hilcorp Alaska LLC B Reference 11700'— 13233' 10' 3800 Center Point Drive, Suite 100 Anchorage, AK 99508 25 CANRIG �T Hilcorp Alaska, LLC K-10 RD2 DRILLING DATA 4.1 SURVEYS Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+) W(-) Vertical Section (Incr) (ft) Dogleg Rate (0/100ft) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 122.00 0.07 259.94 122.00 -0.01 -0.07 0.07 0.06 222.00 0.25 256.26 222.00 -0.08 -0.35 0.35 0.18 322.00 2.15 260.44 321.97 -0.44 -2.41 2.40 1.90 422.00 4.83 306.21 421.79 1.74 -7.66 6.52 3.67 522.00 6.34 313.68 521.32 8.04 -15.05 11.17 1.67 622.00 9.22 298.90 620.40 15.73 -26.06 18.69 3.48 722.00 11.65 280.53 718.76 21.44 -43.00 32.46 4.09 822.00 12.37 255.89 816.64 20.68 -63.33 51.72 5.14 922.00 14.44 241.86 913.93 12.18 -84.72 74.73 3.84 1,022.00 17.39 241.35 1,010.09 -0.86 -108.84 101.92 2.95 1,122.00 20.34 240.91 1,104.71 -16.48 -137.14 133.94 2.95 1,222.00 23.05 243.74 1,197.62 -33.60 -169.89 170.65 2.90 1,322.00 26.06 242.66 1,288.56 -52.35 -206.97 211.99 3.04 1,422.00 29.31 243.03 1,377.10 -73.55 -248.31 258.17 3.25 1,522.00 32.56 244.24 1,462.87 -96.35 -294.37 309.35 3.31 1,622.00 35.68 244.71 1,545.65 -120.51 -344.99 365.26 3.13 1,722.00 38.95 245.17 1,625.17 -146.17 -399.90 425.72 3.28 1,822.00 42.59 245.40 1,700.89 -173.47 -459.21 490.87 3.64 1,922.00 45.91 246.02 1,772.51 -202.16 -522.81 560.53 3.35 2,022.00 49.56 246.49 1,839.75 -231.94 -590.54 634.43 3.67 2,122.00 51.20 247.03 1,903.52 -262.33 -661.31 711.40 1.69 2,222.00 51.07 246.88 1,966.27 -292.81 -732.96 789.21 0.17 2,322.00 50.60 247.35 2,029.42 -322.96 -804.39 866.71 0.59 2,422.00 50.46 247.31 2,092.99 -352.72 -875.62 943.87 0.14 2,522.00 50.36 247.53 2,156.72 -382.31 -946.78 1,020.90 0.20 2,622.00 49.89 247.96 2,220.83 -411.37 -1,017.81 1,097.63 0.57 2,722.00 49.39 247.62 2,285.59 -440.17 -1,088.35 1,173.81 0.56 2,822.00 48.68 247.22 2,351.15 -469.17 -1,158.07 1,249.29 0.77 2,922.00 48.19 247.70 2,417.50 -497.85 -1,227.18 1,324.08 0.61 3,022.00 47.63 248.18 2,484.53 -525.72 -1,295.95 1,398.28 0.66 26 CANRIG A-- Hilcorp Alaska, LLC K-10 RD2 Measured Depth (ft) Incl. (o) Azim. (°) True Vertical De th (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+) W(-) Vertical Section (Incr) (ft) Dogleg Rate (0/100ft) 3,122.00 47.46 247.91 2,552.03 -553.31 -1,364.38 1,472.05 0.26 3,222.00 47.01 247.96 2,619.93 -580.88 -1,432.42 1,545.45 0.45 3,322.00 46.68 248.00 2,688.32 -608.24 -1,500.05 1,618.39 0.33 3,422.00 46.42 247.74 2,757.10 -635.58 -1,567.30 1,690.97 0.32 3,522.00 46.17 247.65 2,826.19 -663.02 -1,634.18 1,763.24 0.26 3,622.00 45.33 248.12 2,895.97 -689.99 -1,700.54 1,834.86 0.90 3,722.00 44.73 248.06 2,966.64 -716.39 -1,766.18 1,905.60 0.60 3,822.00 44.40 248.25 3,037.89 -742.50 -1,831.31 1,975.76 0.36 3,922.00 44.39 248.42 3,109.34 -768.33 -1,896.33 2,045.72 0.12 4,022.00 44.08 248.66 3,180.99 -793.85 -1,961.25 2,115.48 0.35 4,122.00 44.11 248.53 3,252.81 -819.24 -2,026.04 2,185.06 0.10 4,222.00 44.33 248.80 3,324.48 -844.62 -2,091.00 2,254.80 0.29 4,322.00 44.31 249.07 3,396.02 -869.73 -2,156.20 2,324.67 0.19 4,422.00 43.95 248.81 3,467.80 -894.75 -2,221.17 2,394.29 0.40 4,522.00 43.97 248.99 3,539.78 -919.74 -2,285.93 2,463.71 0.13 4,622.00 43.77 249.51 3,611.87 -944.29 -2,350.74 2,533.01 0.41 4,722.00 43.78 249.77 3,684.08 -968.36 -2,415.60 2,602.19 0.18 4,822.00 43.86 249.59 3,756.23 -992.41 -2,480.53 21671.42 0.15 4,922.00 43.83 249.90 3,828.35 -1,016.39 -2,545.52 2,740.69 0.22 5,122.00 43.21 250.03 3,973.38 -1,063.57 -2,674.91 2,878.39 0.31 5,222.00 44.76 251.36 4,045.33 -1,086.52 -2,740.45 2,947.80 1.80 5,322.00 44.65 250.92 4,116.40 -1,109.26 -2,807.01 3,018.10 0.33 5,422.00 44.70 251.23 4,187.51 -1,132.06 -2,873.52 3,088.36 0.22 5,522.00 45.00 251.61 4,258.41 -1,154.53 -2,940.37 3,158.82 0.40 5,622.00 45.26 251.36 4,328.96 -1,177.04 -3,007.57 3,229.63 0.31 5,722.00 45.77 253.06 4,399.03 -1,198.83 -3,075.50 3,300.85 1.32 5,822.00 46.37 253.47 4,468.41 -1,219.57 -3,144.47 3,372.67 0.67 5,922.00 45.57 254.12 4,537.92 -1,239.63 -3,213.51 3,444.31 0.93 6,022.00 1 45.91 254.58 4,607.71 -1,258.95 -3,282.47 3,515.62 0.47 6,122.00 46.76 254.37 4,676.75 -1,278.31 -3,352.17 3,587.63 0.86 6,222.00 47.03 254.66 4,745.08 -1,297.81 -3,422.53 3,660.30 0.34 6,322.00 47.95 255.22 4,812.66 -1,316.96 -3,493.71 3,733.62 1.01 6,422.00 49.54 255.17 4,878.59 -1,336.17 -3,566.39 3,808.36 1.59 6,522.00 49.35 254.88 4,943.61 -1,355.80 -3,639.79 3,883.91 0.29 6,622.00 50.82 254.57 5,007.78 -1,376.01 -3,713.78 3,960.23 1.49 6,722.00 50.77 255.59 5,070.99 -1,395.96 -3,788.65 4,037.28 0.79 27 CANRIG Hilcorp Alaska, LLC K-10 RD2 Measured Depth (ft) Incl. (o) Azim. (°) Vertical Depth (ft) Latitude atitude (ft) N(+) S(-) Departure O E(+) W(-) Vertical Section (Incr) (ft) Dogleg Rate (01100ft) 6,822.00 52.09 254.87 5,133.33 -1,415.89 -3,864.25 4,115.00 1.44 6,922.00 53.52 256.09 5,193.79 -1,435.86 -3,941.36 4,194.14 1.73 7,022.00 53.52 256.56 5,253.24 -1,454.87 -4,019.49 4,273.89 0.38 7,122.00 55.08 256.83 5,311.59 -1,473.55 -4,098.52 4,354.37 1.58 7,222.00 54.75 257.16 5,369.07 -1,491.97 -4,178.25 4,435.40 0.43 7,322.00 54.06 258.01 5,427.28 -1,509.45 -4,257.66 4,515.81 0.98 7,422.00 52.81 258.37 5,486.85 -1,525.89 -4,336.27 4,595.09 1.28 7,522.00 53.29 258.76 5,546.96 -1,541.74 -4,414.60 4,673.90 0.57 7,622.00 52.49 259.64 5,607.30 -1,556.68 -4,492.94 4,752.38 1.06 7,722.00 51.89 259.89 5,668.60 -1,570.72 -4,570.68 4,830.00 0.63 7,822.00 51.85 260.79 5,730.35 -1,583.92 -4,648.23 4,907.12 0.71 7,922.00 51.37 260.47 5,792.45 -1,596.68 -4,725.56 4,983.89 0.54 8,022.00 50.49 260.75 5,855.47 -1,609.35 -4,802.16 5,059.94 0.91 8,122.00 50.09 261.62 5,919.36 -1,621.14 -4,878.18 5,135.13 0.78 8,222.00 49.27 262.45 5,984.07 -1,631.71 -4,953.68 5,209.41 1.04 8,322.00 49.07 263.88 6,049.45 -1,640.71 -5,028.81 5,282.77 1.10 8,422.00 48.07 263.17 6,115.62 -1,649.16 -5,103.30 5,355.35 1.13 8,445.00 47.79 263.55 6,131.03 -1,651.14 -5,120.26 5,371.89 1.73 8,538.20 46.13 263.71 6,194.64 -1,658.70 -5,187.96 5,437.80 1.79 8,600.29 44.70 263.82 6,238.23 -1,663.50 -5,231.92 5,480.56 2.31 8,665.60 41.59 263.95 6,285.87 -1,668.26 -5,276.32 5,523.72 4.76 8,729.58 39.54 264.09 6,334.48 -1,672.59 -5,317.70 5,563.90 3.21 8,792.82 37.85 264.23 6,383.83 -1,676.62 -5,357.02 5,602.06 2.66 8,856.62 36.59 260.80 6,434.64 -1,681.63 -5,395.28 5,639.57 3.81 8,919.43 35.36 262.32 6,485.47 -1,687.05 -5,431.77 5,675.58 2.43 8,983.00 33.58 260.80 6,537.88 -1,692.32 -5,467.36 5,710.69 3.11 9,046.35 31.97 262.41 6,591.14 -1,697.33 -5,501.28 5,744.15 2.89 9,109.80 30.26 260.93 6,645.46 -1,702.07 -5,533.72 51776.14 2.95 9,173.18 28.57 259.30 6,700.67 -1,707.40 -5,564.38 5,806.68 2.95 9,235.72 26.51 258.03 6,756.12 -1,713.07 -5,592.74 5,835.18 3.43 9,298.77 24.54 255.94 6,813.01 -1,719.17 -5,619.21 5,862.08 3.43 9,361.93 23.74 255.93 6,870.65 -1,725.45 -5,644.27 5,887.72 1.27 9,424.97 23.21 255.76 6,928.47 -1,731.59 -5,668.62 5,912.66 0.85 9,488.37 23.01 256.25 6,986.78 -1,737.61 -5,692.76 5,937.35 0.44 9,552.00 22.53 256.50 7,045.45 -1,743.41 -5,716.69 5,961.77 0.77 9,614.21 22.44 256.43 7,102.94 -1,748.98 1 -5,739.82 5,985.36 0.15 CAIVi��C.7 28 Hilcorp Alaska, LLC K-10 RD2 Measured De th (ft) DDepth p Incl. (o) Azim. (0> True Vertical (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W() Vertical Section (Incr) (ft) Dogleg Rate (0/100ft) 9,677.15 23.56 255.94 7,160.87 -1,754.85 -5,763.70 6,009.76 1.81 9,741.44 23.35 255.90 7,219.85 -1,761.08 -5,788.52 6,035.16 0.32 9,803.84 1 23.08 256.07 7,277.20 -1,767.03 -5,812.39 6,059.58 0.45 9,866.87 24.16 255.79 7,334.94 -1,773.18 -5,836.89 6,084.65 1.72 9,929.45 23.28 256.43 7,392.24 -1,779.22 -5,861.32 6,109.63 1.46 9,992.44 22.94 256.94 7,450.17 -1,784.91 -5,885.38 6,134.13 0.63 10,055.23 24.17 256.94 7,507.73 -1,790.58 -5,909.82 6,158.98 1.97 10,118.94 23.90 257.12 7,565.92 -1,796.41 -5,935.11 6,184.68 0.44 10,182.38 24.34 257.68 7,623.81 -1,802.07 -5,960.42 6,210.33 0.78 10,245.67 24.05 257.55 7,681.54 -1,807.63 -5,985.76 6,235.98 0.47 10,308.55 23.76 257.37 7,739.03 -1,813.16 -6,010.63 6,261.18 0.48 10,371.01 24.98 256.92 7,795.92 -1,818.90 -6,035.76 6,286.70 1.98 10,435.72 24.72 256.55 7,854.64 -1,825.13 -6,062.22 6,313.64 0.47 10,497.85 24.63 256.67 7,911.10 -1,831.14 -6,087.45 6,339.35 0.16 10,561.14 25.22 256.35 7,968.49 -1,837.36 -6,113.39 6,365.79 0.96 10,623.42 24.88 256.92 8,024.92 -1,843.46 -6,139.04 6,391.93 0.67 10,687.96 24.52 255.10 8,083.55 -1,849.98 -6,165.21 6,418.69 1.30 10,751.32 24.21 256.26 8,141.27 -1,856.44 -6,190.53 6,444.65 0.90 10,813.06 24.33 256.61 8,197.55 -1,862.39 -6,215.20 6,469.81 0.31 10,876.55 24.81 256.74 8,255.29 -1,868.48 -6,240.89 6,495.98 0.76 10,940.96 24.41 256.39 8,313.85 -1,874.71 -6,266.99 6,522.57 0.66 11,005.04 25.25 254.10 8,372.01 -1,881.57 -6,293.00 6,549.32 1.99 11,067.85 26.11 254.19 8,428.61 -1,889.00 -6,319.19 6,576.43 1.37 11,131.81 27.44 250.35 8,485.72 -1,897.80 -6,346.61 6,605.18 3.41 11,192.92 28.91 248.97 8,539.59 -1,907.83 -6,373.66 6,634.03 2.63 11,258.73 29.79 246.14 8,596.95 -1,920.16 -6,403.46 6,666.27 2.50 11,320.35 30.96 243.36 8,650.11 -1,933.46 -6,431.63 6,697.34 2.96 11,383.38 31.97 241.07 8,703.88 -1,948.80 -6,460.73 6,730.00 2.48 11,442.87 33.10 239.35 8,754.03 -1,964.70 -6,488.49 6,761.61 2.46 11,506.66 35.02 237.54 8,806.88 -1,983.40 -6,518.92 6,796.73 3.41 11,570.16 36.19 234.98 8,858.50 -2,003.94 -6,549.65 6,832.78 2.97 11,632.57 38.77 232.98 8,908.03 -2,026.28 -6,580.35 6,869.44 4.57 11,697.15 40.03 231.22 8,957.93 -2,051.47 -6,612.69 6,908.66 2.61 11,760.13 39.80 230.35 9,006.24 -2,077.02 -6,644.00 6,947.04 0.96 11,822.85 39.96 230.06 9,054.37 -2,102.76 -6,674.89 6,985.11 0.39 11,886.52 40.03 229.68 9,103.15 -2,129.13 -6,706.18 7,023.77 0.39 29 CANRIG Hilcorp Alaska, LLC K-10 RD2 Measured Incl. Depth (ft) (o) Azim. (�) True Vertical Depth (ft) Latitude Departure (ft) N(+), S(-) (ft) E(+) W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 11,948.07 40.72 230.82 9,150.04 -2,154.62 -6,736.83 7,061.52 1.64 12, 012.26 43.24 230.51 9,197.76 -2,181.83 -6,770.04 7,102.27 3.94 12,073.91 1 47.22 231.40 9,241.17 -2,209.39 -6,804.03 7,143.88 6.53 12,136.84 50.16 230.34 9,282.71 -2,239.23 -6,840.68 7,188.79 4.84 12,198.90 53.00 228.29 9,321.27 -2,270.93 -6,877.53 7,234.56 5.26 12,263.62 55.75 225.99 9,358.97 -2,306.72 -6,916.07 7,283.37 5.14 12,326.91 58.28 224.93 9,393.42 -2,343.96 -6,953.91 7,332.03 4.24 12,393.26 61.20 224.23 9,426.85 -2,384.78 -6,994.12 7,384.20 4.49 12,456.94 63.10 223.08 9,456.60 -2,425.52 -7,032.98 7,435.08 3.39 12,520.39 66.12 223.07 9,483.81 -2,467.38 -7,072.12 7,486.63 4.75 12,583.10 68.28 223.69 9,508.11 -2,509.40 -7,111.83 7,538.75 3.58 12,646.35 70.87 224.26 9,530.18 -2,552.05 -7,152.98 7,592.46 4.18 12,709.61 72.21 223.99 9,550.21 -2,595.12 -7,194.76 7,646.89 2.16 12,772.71 73.79 223.71 9,568.66 -2,638.64 -7,236.56 7,701.51 2.53 12,834.38 74.57 224.22 9,585.47 -2,681.34 -7,277.75 7,755.27 1.50 12,898.17 75.39 224.23 9,602.00 -2,725.49 -7,320.72 7,811.21 1.29 12,962.10 76.22 223.88 9,617.68 -2,770.03 -7,363.82 7,867.41 1.41 13,025.48 77.86 223.44 9,631.89 -2,814.71 -7,406.46 7,923.23 2.66 13,088.70 78.82 223.99 9,644.67 -2,859.46 -7,449.25 7,979.21 1.74 30 CANRIG Hilcorp Alaska, LLC K-10 RD2 4.2 BIT RECORD BIT JETS/ Feet AVE NO. SIZE TYPE S/N TFA IN OUT Drilled HRS ROP CONDITION (Ft/HR) 1 8.5" Varel V613PDG 4008502 6x12 8,462' 8,696' 214' 17.01 12.60 2-8-JD-G-X-2-RO-PR PDC 0.6627 2 8.511 HDBS MMD75DC 12321785 7X12 8,696' 11,445' 2749' 49.51 55.50 1-4-BT-G-X-1-NO-DTF PDC 0.7731 3 8.5" HDBS MMD75DC 12451966 7X13 11,445' 12,379' 934' 46.14 20.04 2 -1 -WT -A -X -1 -NO -BHA PDC 0.9073 4 8.5° ReedHycalog SK716M-A3C PDC E192138 7x13 0.9073 12,379' 13,153' 774' 49.25 22.10 6 -7 -WT -N -X -1 -CT -PR 3RR1 8.5 HDBS MMD75DC 12451966 7X13 13,153' 13,233' 80' 3.9 29.10 2 -1 -WT -A -X -1 -NO -TD PDC 0.9073 31 CANRIG Hilcorp Alaska, LLC K-10 RD2 4.3 Mud Record Contractor: Halliburton Baroid Date DepthMW MD TVD (ppg) VIS VIS PV YP Gels FL (cc) FC Sols (%) O/W Ratio Sd (°!°) ASG AgNO3 CaC12 (ppbl) Lime (ppb) Enviromul 10/13/2016 8,445 6,131 8.7 - 29 18 11/31/36 - - 4.8 73/20 - - - 15 7.58 10/14/2016 8,462 6,142 8.7 71 25 15 13/32/38 - 0/1 4.9 76/17 0.05 - - 11.12 4.01 10/15/2016 8,463 6,142 8.7 101 33 15 18/34/43 - 0/1 5.0 82.3/17.7 0.05 3.677 1.6 11.12 4.92 10/16/2016 8,483 6,154 8.75 122 24 16 13/31/34 - 0/1 5.2 81.8/18.2 0.05 3.704 1.5 11.12 6.22 10/17/2016 1 8,482 6,154 8.8 109 24 16 14/29/31 - 0/1 5.1 81.7/18.3 0.05 3.874 1.5 11.12 6.22 10/18/2016 8,636 6,210 8.8 72 20 14 12/21/24 - 0/1 5.1 78.5/21.5 0.05 3.777 1.5 10.15 1 5.96 10/19/2016 8,695 6,321 1 8.8 70 29 14 11/22/32 - 1 0/2 5.7 79.3/20.7 0.05 3.337 1.9 13.06 3.37 10/20/2016 8,696 6,304 8.8 81 27 14 11/21/29 - 0/2 6.0 79.3/20.7 0.05 3.311 1.6 12.09 6.22 10/21/2016 8,696 6,304 8.8 112 27 13 10/22/29 - 0/2 6.1 79.3/20.7 0.05 3.300 1.6 12.09 6.47 10/22/2016 9,189 6,715 9.0 64 27 13 10/24/32 - 0/2 6.9 80.2/19.8 0.05 3.318 1.7 14.03 5.96 10/23/2016 10,005 7,462 9.1 65 23 14 9/21/34 - 0/2 7.4 81.2/18.8 0.05 3.335 1.7 13.54 5.70 10/24/2016 10,413 7,834 9.0 63 27 12 9/21/30 - 0/2 7.4 81.2/18.8 0.05 3.161 1.8 15.00 6.22 10/25/2016 11,102 8,459 9.0 65 26 16 9/24/37 - 0/2 7.5 83.0/17.0 0.05 3.326 1.3 13.06 4.66 10/26/2016 11,435 8,747 8.95 73 28 15 10/27/38 - 0/2 7.9 82.8/17.2 0.05 3.051 1.8 13.06 5.83 10/27/2016 11,435 8,747 1 8.95 76 24 13 9/22/29 - 0/2 8.1 84.5/15.5 0.05 3.041 1.8 14.03 5.96 10/28/2016 11,445 8,756 9.0 89 25 14 9/22/29 - 0/2 8.3 84.4/15.6 0.05 3.074 1.8 14.03 5.70 10/29/2016 11,445 8,756 9.0 147 25 18 11/30/39 - 0/2 7.8 83.4/16.6 0.05 3.172 1.7 14.03 3.63 10/30/2016 11,507 8,807 9.0 79 30 15 12/31/40 - 0/2 8.1 84.5/15.5 0.05 3.137 1.7 13.06 5.57 10/31/2016 11,919 9,130 9.0 71 23 14 11/28/34 - 0/2 8.4 85.6/14.4 0.05 3.121 1.4 10.15 2.85 11/1/2016 12,121 9,272 9.0 61 19 13 12/25/29 - 0/2 8.5 86.1/13.9 0.05 3.120 1.4 11.12 3.76 11/2/2016 12,340 9,400 8.95 63 19 15 12/25/29 - 0/2 8.5 85.6/14.4 0.01 3.033 1.2 11.12 3.37 11/3/2016 12,379 9,421 8.9 74 29 15 12/25/29 - 0/2 9.2 88.3/11.7 0.01 2.894 1.2 11.12 2.85 11/4/2016 12,379 9,421 9.0 97 19 12 12/26/29 - 0/2 9.8 88.8/11.2 0.01 2.922 1.2 10.63 2.20 11/5/2016 12,489 9,471 9.0 84 19 15 16/32/35 - 0/2 8.6 87.2/12.8 0.01 3.139 1.2 10.63 3.63 11/6/2016 12,820 9,581 9.0 84 24 16 16/36/38 - 0/2 8.0 84.5/15.5 0.01 3.226 1.3 11.12 7.51 Abbreviations: MW = Mud Weight Gels = Gel Strength Sols = Solids pH = Acidity VIS = Funnel Viscosity FL = Water or Filtrate Loss Sd = Sand content Cl = Chlorides PV = Plastic Viscosity FC = Filter Cake MBT = Methylene Blue Ca = Hardness Calcium YP = Yield Point O/W = Oil to Water ratio Alk, Pm = Alkalinity, Mud nr = Not Recorded 32 CANRIG Hilcorp Alaska, LLC K-10 RD2 Contractor: Halliburton Baroid Date Depth MD TVD MW (ppg) VIS (s/qt) PV YP Gels FL (cc} FC Sols (%) O/V1t I Ratio Sd (°10) ASG AgNO3 CaCl2 (ppbl) Lime (ppb) Enviromul 11/7/2016 12,820 9,581 9.0 82 21 14 14/29/32 - 0/2 6.5 84.8/15.2 0.01 3.775 1.2 10.63 7.51 11/8/2016 13,153 9,656 9.0 68 21 14 13/26/28 - 0/2 8.0 86.2/13.8 0.01 3.264 1.3 11.12 7.51 11/9/2016 13,153 9,656 9.0 197 23 15 16/28/30 - 0/2 8.5 86.7/13.3 0.01 3.128 1.4 11.12 16.19 11/10/2016 13,220 9,667 8.95 74 21 13 14/28/30 - 0/2 8.5 86.7/13.3 0.01 3.061 1.3 10.63 19.04 11/11/2016 13,233 9,670 8.95 72 28 14 14/34/40 - 0/2 7.5 86.8/13.2 0.01 3.362 1.5 10.15 10.88 11/12/2016 13,233 9,670 8.95 107 21 13 14/28/31 - 0/2 7.5 86.8/13.2 0.01 3.367 1.3 9.66 14.89 11/13/2016 13,233 9,670 8.95 81 21 12 12/26/29 - 1 0/2 7.6 87.4/12.6 0.01 3.373 1.3 9.66 15.02 11/14/2016 13,233 9,670 9.0 107 22 16 12/33/41 - 0/2 7.6 87.4/12.6 0.01 3.448 1.5 10.15 14.76 11/15/2016 13,233 9,670 8.9 82 31 14 9/28/38 1 - 0/2 7.0 1 86.9/13.1 0.01 3.433 1.8 13.06 14.89 Abbreviations: MW = Mud Weight Gels = Gel Strength Sols = Solids pH = Acidity VIS = Funnel Viscosity FL = Water or Filtrate Loss Sd = Sand content Cl = Chlorides PV = Plastic Viscosity FC = Filter Cake MBT = Methylene Blue Ca = Hardness Calcium YP = Yield Point O/W = Oil to Water ratio Alk, Pm = Alkalinity, Mud nr = Not Recorded 33 CANRIG 4.4 Drillinq Progress •M 10000 11000 12000 14000 e e �o ( e 0 0 0 0 0 0 0 0 0 0 o A A � T Hilcorp Alaska, LLC K-10 RD2 34 CANRIG SHOW REPORTS l-j Hilcorp Alaska, LLC K-10 RD2 moi CAI�I�IG Deu � ��c Tr:a-�so�.�I Lro. Hydrocarbon Show Report # Operator: Well: TBU K-10 RD2 API Number 50-733-20167-02-00 Field: McArthur River Field Date: Rig: Kuukpik 5 Time: County: Kenai Peninsula Borough Depth Start End State: Country: Alaska United States of America 11943' MD 12046' MD 9146' TVD 9221' TVD Averages Pixler Plot Before During After Maximum ROP (fph) 18 ft/hr 35 ft/hr 29 ft/hr 124 ft/hr 10000 1000 WOB 10 klbs 6 klbs 6 klbs 12 klbs RPM 5rm 5rm 18 rpm 9 rpm PP 2689 psi 2652 psi 2624 psi 2811 psi - RY GAS Mud Weight 9.0 lbs/gal 9.0 lbs/gal 9.0 lbs/gal 9.0 lbs/gal E00 _ _ - - Chloride a -- Total Gas 23 22 19 36 -- - C1 (ppm) 3,841 3,240 2,660 6,193 NON -RaaB G C2 (ppm) 222 253 228 431 , 2 3 -' 4 C, C2 C1 C3 C,,Ca C, C5 C3 (ppm) 130 142 119 272 C4 (ppm) 21 35 24 1 107 C5 (ppm) - Lithology Tuffaceous sandstone / sand = medium gray to medium dark gray, slight light olive gray to olive gray; lower fine to upper fine with occasional coarse grading to lower medium to upper medium with occasional coarse; spherical to sub discoidal; sub rounded to rounded, rare sub angular; well to moderately well sorted; friable or unconsolidated; tuffaceous matrix; grain supported; texturally sub mature; texturally immature; quartz, translucent or transparent, pitted or etched; mafic and green lithics; Cuttings Analysis Odor Inone Fluorescence Cut Fluorescence Residual Cut _ Stain Amount Distribution Intensity Color 10% Type Intensity Color streaming Amount1paleV Color Amount Color none patchy bright brown none dull white Residual Fluorescence Cut Color none yellow Intesity Color pale yellow Oil Show Rating Free Oil in Mud ino Comments NAF Drilling fluid makes analyzing shows difficult Report by: Josh Dubowski / Tollef Winslow CANRIG U 'I.,I; Hydrocarbon Show Report # 2 Operator: Well: TBU K-10 RD2 API Number 50-733-20167-02-00 Field: McArthur River Field Date: Rig: Kuukpik 5 Time: County: Kenai Peninsula Borough Depth Start End State: Country: Alaska United States of America 12050' MD 12123' MD 9224' TVD 9273' TVD Averages Pixler Plot Before During After Maximum ROP (fph) 30 ft/hr 24 ft/hr 29 ft/hr 88 ft/hr 10000 WOB 6 klbs 8 klbs 7 klbs 13 klbs RPM 13rpm 29r m 19rpm 84rpm 1000 PP 2619 psi 2665 si 2654 psi 2850 psi v -- Mud Weight 9.0 lbs/gal 9.0 lbs/gal 9.0 lbs/gal 9.0 lbs/gal E 100 Chloride 10 Total Gas 19 15 10 20 _ - C1 (ppm) 2,654 1,832 803 3,100 C2 (ppm) 225 211 71 316 , 2 a 4 C,'Cz o1/o3 Cl/G4 G1'C5 C3 (ppm) 120 68 19 99 C4 (ppm) 1 25 1 7 1 - 31 C5 (ppm) - Lithology Tuffaceous sandstone / sand = dark medium gray to medium gray with pale brown to light olive hues; lower fine to upper fine with lower medium to upper coarse somewhat common; sub spherical to sub discoidal; sub rounded to rounded with occasional angular, bit broken grains; well to moderate sorting; easily friable to unconsolidated; tuffaceous matrix; grain supported; good to moderate visual porosity and permeability; predominantly translucent to clear quartz, etching and pitting common; Cuttings Analysis Odor i none Fluorescence Cut Fluorescence Residual Cut Stain Amount Distribution Intensity Color _ <10% _ _ Type Intensity Color streaming bright Amount Color none Amount Color none atch none none dull white Residual Fluorescence Cut Color none yellow Intesitypale Color yellow Oil Show Rating Free Oil in Mud Ino Comments NAF Drilling fluid makes analyzing shows difficult Report by: Josh Dubowski / Tollef Winslow CANRIG Hydrocarbon Show Report # 3 Operator: Well: TBU K-10 RD2 API Number 50-733-20167-02-00 Field: McArthur River Field Date: Rig: Kuukpik 5 Time: County: Kenai Peninsula Borough Depth Start End State: Country: Alaska United States of America 12180' MD 12257' MD 9309 TVD 9355 TVD Averages Pixler Plot Before During After Maximum ROP (fph) 30 ft/hr 24 ft/hr 29 ft/hr 88 ft/hr 1000° -_ WOB 6 klbs 8 kibs 7 klbs 13 klbs RPM 13 rpm 29 rpm 19 rpm 84 rpm 1000 _ PP 2619 psi 2665 psi 2654 psi 2850 psi MY GAS= - Mud Weight 9.0 lbs/gal 9.0 lbs/gal 9.0 lbs/gal 9.0 lbs/gal E 100 Chloride - Total Gas 19 15 10 20 C1 (ppm) 2,654 1,832 803 3,100 C2 (ppm) 225 211 71 316 1 2 3 4 C1/C2 ova3 CVC4 ovoe C3 (ppm) 120 68 19 99 C4 (ppm) 25 7 - 31 C5 (ppm) Lithology Tuffaceous sandstone / sand = medium gray to medium light gray with light olive gray to pale brown sub hues; lower fine to upper fine with medium and coarse clasts; spherical to sub discoidal to sub spherical; sub rounded to rounded to sub angular with occasional angular; moderately well to well sorted; unconsolidated to friable; tuffaceous silt matrix; grain supported; texturally immature; sub mature compositionally; quartz, translucent or transparent with pitting or etching common, some quartz clasts appear to be bit broken; green and mafic lithics; porosity and permeability visually good to moderate; Cuttings Analysis Odor Inone Fluorescence Cut Fluorescence Residual Cut Stain Amount Distribution Intensity Color <10% Type streY aming Intensity j bright Color white Amount Color Li ht Amount Color none atch Brown none dull Residual Fluorescence Cut Color none yellow Intesity Color pale yellow Oil Show Rating Free Oil in Mud Ino Comments NAF Drilling fluid makes analyzing shows difficult Report by: Josh Dubowski / Tolief Winslow DAILY REPORTS Hilcorp Alaska, LLC K-10 RD2 36 Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT TBU K10-RD2 CANRIG REPORT FOR Shane Hauck / Steve Lawrence DATE Nov 15, 2016 DEPTH 13233 PRESENT OPERATION Cementing 7 5/8" casing TIME 24:00:00 YESTERDAY 13233 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 13233 MW 8.9 VIS 82 PV 31 YP 14 FL Gels 9/28/38 CL- FC 0/2 SOL 7.0 SD 0.01 OIL, 86.9/13.1 MBT pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 4.69u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 2.5u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled Rabbit pipe out of derrick, trip into hole to 12971. Pull wipe rubber. Kelly up on stand 115 and wash to 13034. Kelly up again on stand 117 and wash to 13160. Make up 4.53' PUP on top of stand 117. Kelly up on stand 118 and wash to 13195'. Started to pack off, worked pipe. Wash to 13211 and call bottom. Work pipe and establish pump rate trends. Continue circulating bottoms up while working pipe and establish a 3-5 bpm DAILY circulate rate (1.8 bph loss). Lay down one joint of drill pipe, make up 15' PUP joint on bottom of cement head and Kelly up on cement head and ACTIVITY stump. Break circulation and step up pump to 4 bpm. Make up wash line to cuttings tank and high pressure hose to cement head manifold. SUMMARY Reciprocate from 13192' to 13174', circulate stage from 93-165gpm. SLB troubleshoot data problems. Test cement lines at 500-4000psi. Pump 24.7 bbls mud push, chase with 3 bbls mud, pump 61.5 bbls of cement, launch plug, chase with 45 to catch up, seen latch and 921bbls pumped. Continue circulate and bump plug at 313.3 bbls pumped. Check floats (good), slack off to 20K. Pressure up to 3000 with mud pump one. Shut in pumps and continue to pump up to 4200 psi with test pump. Bleed, slack off to 20K, (P/U 90K break over) slack off 20K to no go. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2145.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field TBU K10-RD2 DAILY WELLSITE REPORT CANRIG REPORT FOR Shane Hauck / Rick Brumley DATE Nov 14, 2016 DEPTH 13233 PRESENT OPERATION Running in hole with 7 5/8" casing TIME 24:00:00 YESTERDAY 13233 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 13233 MW 9.00 VIS 107 PV 22 YP 16 FL Gels 12/33/41 CL- FC 0/2 SOL 7.6 SD 0.01 OIL 87.4/12.6 MBT pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 1.6u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled Continue running in hole with 7 5/8" liner to 5016.53'. Swap elevators and make up packer assembly. Rig down power tongs and air slips. Mix DAILY packer fluid and let set 30 minutes. Kelly up and pump liner volume (230 bbls). Continue to circulate liner volume, install wiping rubber. Trip in ACTIVITY hole 4 stands of HWDP at 30' per minute. Rabbit HWDP out of derrick, trip in hole with 14 joints of HWDP, rabbit in v-door from 5114' to 5785'. SUMMARY Rabbit pipe out of derrick and continue tripping in hole with liner to 8307'. Stage up pumps. Pick up and make up cement head then lay back down. Check DW and top drive bolts. Trip into hole to stopping to circulate at 9600', 11640' and 12214' Continue tripping in hole at report time. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2145.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT TBU K10-RD2 CoMRIG REPORT FOR Shane Hauck / Rick Brumley DATE Nov 13, 2016 DEPTH 13233 PRESENT OPERATION Running in hole with 7 5/8" TIME 24:00:00 YESTERDAY 13233 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR1 8.5" HDBS MM75DC PDC 12451966 7x13 13153 13233 80 3.9 2-1-WT-A-X-1-NO TO DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 13233 MW 8.95 VIS 81 PV 21 YP 12 FL Gels 12/26/29 CL- FC 0/2 SOL 7.6 SD 0.01 OIL 87.4/12.6 MBT pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 1.6u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled DAILY Continue laying down BHA and download data from tools. Make up test joint assembly, land test plug with casing values, lock down 4 lock ACTIVITY downs. Fill riser with one bbls of water to check O-ring on test plug. Change 2-7/8 x 5-% lower rams to 7-5/8" rams. Fill stack with water, work SUMMARY air out of BOPS. Test BOPs, drain stack and rig up to run 7-5/8" casing. Run casing to 2847', Kelly up and circulate 56 bbls total. Continue running into the hole with casing to 3857'. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2145.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT TBU K10-RD2 CM' REPORT FOR Shane Hauck / Rick Brumley DATE Nov 12, 2016 DEPTH 13233 PRESENT OPERATION L/D BHA TIME 24:00:00 YESTERDAY 13233 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR1 8.5" HDBS MM75DC PDC 12451966 7x13 13153 13233 80 3.9 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 13233 MW 8.95 VIS 107 PV 21 YP 13 FL Gels 14/28/31 CL- FC 0/2 SOL 7.5 SO 0.01 OIL 86.8/13.2 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 13153 TO 13233 TOOLS ALD, CTN, DGR, EWR-P4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG -/ 1.9u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled DAILY The rig continued test BOPS. Test plug rubber failed during test #4, the stack was drained and the rubber was replaced. The rig redid test #4 ACTIVITY and continued testing the rest of the BOPs. Once finished, drained the stack and rig down testing equipment. Filled the hole with 9.55bbls, SUMMARY performed rig service while monitoring the well (1" drop in five minutes). Began tripping out of the hole with gyro to 913' while laying down 29 joints. Trip back in hole, as per gyro personnel, to 1297'. Slip and cut 140' of drill line. Pull back out of the hole and lay down BHA. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2145.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT TBU K10-RD2 CMRIG REPORT FOR Shane Hauck / Rick Brumley DATE Nov 11, 2016 DEPTH 13233 PRESENT OPERATION Testing BOP TIME 24:00:00 YESTERDAY 13233 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR1 8.5" HDBS MM75DC PDC 12451966 7x13 13153 13233 80 3.9 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 13233' MW 8.95 VIS 74 PV 25 YP 15 FL Gels 14/33/38 CL- FC 0/2 SOL 7.5 SD 0.01 OIL 86.8/13.2 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 13153 TO TO TOOLS ALD, CTN, DGR, EWR-P4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 2.2u / 2.2u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled The rig continued to MAD pass out of hole from 13050 to 12996. Change out swivel packing after continued leakage. Change pop off on mud DAILY pump number 2. Continue MAD passing to 12842. Break tongs quit working and make tongs would not release, troubleshoot PLC hydrolics for ACTIVITY tong rams. Change fuse in PCL panel. Continue MAD pass to 11400 then pump high viscosity sweep. Sweep back at 792bbis. Grease choke SUMMARY manifold. Drop gyro and chase with 5 bpm at 1130 psi. Increase to 6 bpm @ 2200psi. MWD observed 75psi increase. Pump dry job and pull out of hole to 8395' with the gyro checking depths every stand. Monitorwell for 15 mins (-0.50 bph). Rig up to test BOP and begin testing. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2905.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT TBU K10-RD2 CwA"RIG REPORT FOR Shane Hauck / Rick Brumley DATE Nov 10, 2016 DEPTH 13233 PRESENT OPERATION MAD pass TIME 24:00:00 YESTERDAY 13153 24 HOUR FOOTAGE 80 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 13143.46 79.949 223.8648 9654.8965 13199.88 80.3215 223.5768 9664.5625 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR1 8.5" HDBS MM75DC PDC 12451966 7x13 13153' 13233' 80' 3.9 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 63.4 @ 13216 3.0 @ 13161 29.1 28.49 FT/HR SURFACE TORQUE 14190 @ 13225 8380 @ 13161 11739.2 11497.30 FT-LBS WEIGHT ON BIT 10 @ 13164 7 @ 13215 8.8 8.37 KLBS ROTARY RPM 82 @ 13165 5 @ 13161 73.9 66.77 RPM PUMP PRESSURE 3074 @ 13208 1426 @ 13161 2930.0 2996.12 PSI DRILLING FLUIDS REPORT DEPTH 13220 MW 8.95 VIS 74 PV 21 YP 13 FL Gels 14/28/30 CL- FC 0/2 SOL 8.5 SO 0.01 OIL 86.7/13.3 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 13153 TO TD TOOLS ALD, CTN, DGR, EWR-P4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 18 @ 13193 5 @ 13157.00000 9.6 TRIP GAS 18u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 3781 @ 13193 612 @ 13157 1590.5 CONNECTION GAS HIGH ETHANE (C-2) 161 @ 13180 55 @ 13157 55.4 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 2.5u / 6.3u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 30% Tuffaceous siltstone 30% Tuffaceous siltstone 30% Sand 10% Coal PRESENT LITHOLOGY 30% Tuffaceous siltstone 30% Tuffaceous siltstone 30% Sand 10% Coal DAILY The rig continued to trip into the hole while filling pipe every 3000'. Pick up 28 joints from 5773' to 6656'. Adjust torque and troubleshoot ACTIVITY Phantom reading on top drive. Continue tripping in to a tight spot at 12745'. Pump through and ream clean from 12745' to 12765'. Encountered SUMMARY tight spots again at 13043 and ream clean from 13000' to 13063'. Ream and wash down from 13063' to 13153'. Drill ahead per directional driller. TO called at 13233' and began MAD passing out of hole. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2905.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC s McArthur River Field DAILY WELLSITE REPORT TBU K10-RD2 CANRIG REPORT FOR Shane Hauck / Rick Brumley DATE Nov 09, 2016 DEPTH 13153 PRESENT OPERATION Tripping in hole TIME 24:00:00 YESTERDAY 13153 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 8445 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 8.5" Reed Hycalog SK7 16M-AC3 E192138 7x12 12379 13153 774 49.25 6-7-WT-N-X-1-CT PR 3rr1 8.5" HDBS MM75DC PDC 12451966 7x13 13153 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 13153 MW 9.0 VIS 197 PV 23 YP 15 FL Gels 16/28/30 CL- FC 0/2 SOL 8.5 SD 0.01 OIL 86.7/13.3 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 13153 TO TO TOOLS ALD, CTN, DGR, EWR-P4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No New Footage Drilled DAILY ACTIVITY The rig pumped a dry job and continued to pull out of the hole. Swap power from rig to platform and lay down BHA #9. Download memory SUMMARY data and pick up BHA #10. Upload tools, rebuild suction rubbers. Shallow test MWD test. Install nuclear sources and monitor well (-0.25bbls). Trip in hole to 3000' and stop to adjust top drive torque. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2905.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT TBU K10-RD2 CoMRIG REPORT FOR Marvin Rogers / Rick Brumley DATE Nov 08, 2016 DEPTH 13153 PRESENT OPERATION POOH TIME 24:00:00 YESTERDAY 13051 24 HOUR FOOTAGE 102 CASING INFORMATION 9 5/8" @ 8445 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 13025.48 77.86 223.44 9631.89 13088.70 78.82 223.99 9644.67 13115.38 79.08 223.99 9656.82 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 8.5" Reed Hycalog SK716M-AC3 E192138 7x12 12379' 13153' 774' 49.25 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 19.5 @ 13119 2.2 @ 13153 10.6 2.23 FT/HR SURFACE TORQUE 14237 @ 13146 10383 @ 13098 11386.6 10824.98 FT-LBS WEIGHT ON BIT 10 @ 13051 4 @ 13147 6.5 8.25 KLBS ROTARY RPM 84 @ 13105 77 @ 13095 81.0 78.97 RPM PUMP PRESSURE 2929 @ 13051 2664 @ 13099 2811.8 2843.10 PSI DRILLING FLUIDS REPORT DEPTH 13153 MW 9 VIS 68 PV 21 YP 14 FL Gels 13/26/28 CL- FC 0/2 SOL 8.0 SD 0.01 OIL 86.2/13.8 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 12379' TO 13153' TOOLS DGR, EWR P-4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 14 @ 13051 5 @ 13112 8.7 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 2237 @ 13051 518 @ 13117 926.1 CONNECTION GAS HIGH 4u ETHANE (C-2) 202 @ 13081 54 @ 13105 106.2 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 3.1 u / 6.3u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 30% sand 30% Tuffaceous siltstone 20% Tuffaceous sandstone 20% Conglomerate PRESENT LITHOLOGY 70% Sand 20% Tuffaceous siltstone 10% Tuffaceous sandstone DAILY ACTIVITY The rig continued drilling ahead as per the directional driller to 13153'. Pump high viscosity sweep while rotating and reciprocating. Pump SUMMARY 1645 bbls total and monitor well (minimal loss). Troubleshoot break and lay down 3 singles. Change out saver sub and dies. Pull out of hole, over pulling by 40k at 8828'. Attempt with just pump and ream dean. Continuing to pull out of hole at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2905.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT TBU K10-RD2 CANRIG REPORT FOR Marvin Rogers / Rick Brumley DATE Nov 07, 2016 DEPTH 13051 PRESENT OPERATION Drilling TIME 24:00:00 YESTERDAY 12828 24 HOUR FOOTAGE 223 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 12834.38 74.57 224.22 9585.4727 12898.17 75.39 224.23 9602.0039 12962.1 76.2235 223.8799 9617.6797 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 8.5" Reed Hycalog SK716M-AC3 12379' 7x12 12379' 672' 39.0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 95.1 @ 12828 1.2 @ 12831 13.0 7.29 FT/HR SURFACE TORQUE 13004 @ 12876 71 @ 12832 10180.4 10260 FT-LBS WEIGHT ON BIT 21 @ 12842 2 @ 12858 8.4 11 KLBS ROTARY RPM 85 @ 12998 1 @ 12832 71.2 790 RPM PUMP PRESSURE 3115 @ 13010 2361 @ 12850 2752.9 2915 PSI DRILLING FLUIDS REPORT DEPTH 12820' MW 9.0 VIS 82 PV 21 YP 14 FL Gels 14/29/32 CL- FC 0/2 SOL 6.5 SD 0.01 OIL 78.0/14.0 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 12379' TO TD TOOLS DGR, EWR P-4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 18 @ 12995 4 @ 12848 9.9 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 2524 @ 12995 207 @ 12841 1014.1 CONNECTION GAS HIGH ETHANE (C-2) 463 @ 13015 44 @ 12838 180.5 AVG PROPANE (C-3) 47 @ 12950 1 @ 12914 4.4 CURRENT BUTANE (C-4) @ 0 @ CURRENT BACKGROUND/AVG 10.3 / 10.0 PENTANE (C-5) @ 0 @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 30% Tuffaceous sandstone 30% sand 20% conglomerate sand 20% Tuffaceous siltstone PRESENT LITHOLOGY 30% Tuffaceous sandstone 20% sand 20% conglomerate sand 20% Tuffaceous siltstone 10% Carbonaceous shale DAILY ACTIVITY The rig continued drilling ahead as per the directional driller to 12882'. Picked up off bottom and circulated while dealing with a power SUMMARY outage across the platform. After getting power back online they continued drilling ahead to 13051' at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2905.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT TBU K10-RD2 CANRIG REPORT FOR Marvin Rogers / Rick Brumley DATE Nov 06, 2016 DEPTH 12828 PRESENT OPERATION Drilling TIME 24:00:00 YESTERDAY 12520 24 HOUR FOOTAGE 308 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 12520.39 66.1153 223.0691 9483.8076 12583.1 68.2841 223.6868 9508.1074 SURVEY DATA 12646.35 70.87 224.26 9530.1768 12709.61 72.21 223.99 9550.20 12772.71 73.78 223.71 9568.65 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 8.5" Reed Hycalog SK716M-A3C E192138 7x13 12379' 449' 21.0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 111.0 @ 12726 1.4 @ 12774 28.5 8.75 FT/HR SURFACE TORQUE 16563 @ 12819 70 @ 12618 8497.0 13579.26 FT-LBS WEIGHT ON BIT 14 @ 12819 0 @ 12604 6.1 12.13 KLBS ROTARY RPM 93 @ 12816 0 @ 12585 55.6 86.55 RPM PUMP PRESSURE 3141 @ 12819 2302 @ 12585 2602.4 2867.42 PSI DRILLING FLUIDS REPORT DEPTH 12820 MW 9.0 VIS 84 PV 24 YP 16 FL Gels 16/36/38 CL- FC 0/2 SOL 8.0 SD 0.01 OIL 84.5/15.5 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 12379' TO TD TOOLS DGR, EWR P-4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 22 @ 12646 6 @ 12557 12.6 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 3751 @ 12579 482 @ 12815 1638.1 CONNECTION GAS HIGH ETHANE (C-2) 614 @ 12784 37 @ 12550 191.5 AVG PROPANE (C-3) 126 @ 12647 7 @ 12547 48.2 CURRENT BUTANE (C-4) 25 @ 12647 18 @ 12658 2.5 CURRENT BACKGROUND/AVG 5.6u / 10.1u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 60°% Sand 30% Tuffaceous sandstone/conglomerate 10% Tuffaceous siltstone PRESENT LITHOLOGY 30% Sand 30% Tuffaceous Sandstone/conglomerate 30% Tuffaceous siltstone 10% Carbonaceous Shale DAILY ACTIVITY The rig continued drilling ahead as per the directional driller. Pump high viscosity sweep at 12786' and it came back at 860bbls. Monitor SUMMARY well and pull out of hole for short trip to 12364'. Run back into hole and continue dulling ahead as per directional driller. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2905.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT TBU K10-RD2 CANRIG REPORT FOR Marvin Rogers / Rick Brumley DATE Nov 05, 2016 DEPTH 12520 PRESENT OPERATION Drilling TIME 24:00:00 YESTERDAY 12379 24 HOUR FOOTAGE 141 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 12456.94 63.10 223.08 9456.60 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 8.5" Reed Hycalog SK716M-A3C E192138 7x13 12379' 141' 6.0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 103.7 @ 12413 3.0 @ 12400 31.1 53.51 FT/HR SURFACE TORQUE 12857 @ 12514 70 @ 12488 6957.0 11273.20 FT-LBS WEIGHT ON BIT 12 @ 12379 0 @ 12391 4.6 6.93 KLBS ROTARY RPM 84 @ 12433 0 @ 12490 50.7 59.32 RPM PUMP PRESSURE 2869 @ 12421 2308 @ 12487 2668.0 2572.45 PSI DRILLING FLUIDS REPORT DEPTH 12489 MW 9.0 VIS 84 PV 19 YP 15 FL Gels 16/32/35 CL- FC 0/2 SOL 8.6 SD 0.01 OIL 87.2/12.8 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 12379' TO TD TOOLS DGR, EWR P-4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 22 @ 12419 7 @ 12489 13.6 TRIP GAS 45u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 4526 @ 12419 713 @ 12488 2184.3 CONNECTION GAS HIGH ETHANE (C-2) 385 @ 12379 57 @ 12404 136.4 AVG PROPANE (C-3) 87 @ 12430 27 @ 12381 43.9 CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 7u / 11.5u PENTANE (C-5) @ 0 @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 80% Sand 10% Tuffaceous siltstone 10% Coal PRESENT LITHOLOGY 90% Sand 10% Coal DAILY ACTIVITY The rig continued running into the hole to 7504' while filling pipe every 3000'. Pick up and single in with 28 joints to 8391'. Orient MWD tools SUMMARY to high side to enter window and trip in hole to 8829'. Circulate while slipping and cutting 150' of drill line. Continue running in hole to 12306'. Wash to bottom and continue drilling ahead per directional driller. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2905.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT TBU K10-RD2 CANRIG REPORT FOR Marvin Rogers / Rick Brumley DATE Nov 04, 2016 DEPTH 12379 PRESENT OPERATION Trip in hole TIME 24:00:00 YESTERDAY 12379 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.5" HDBS MM75DC PDC 12451966 7x12 11445' 12379' 934' 45.75 2-1-WT-A-X-1-NO BHA 4 8.5" Reed Hycalog SK716M-A3C E192138 7x13 12379' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 12379' MW 9.0 VIS 97 PV 19 YP 12 FL Gels 12/26/29 CL- FC 0/2 SOL 9.8 SO 0.01 OIL 88.8/11.2 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 12379' TO TO TOOLS DGR, EWR P-4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No footage drilled DAILY ACTIVITY Finished testing BOPS, rig down tesing equipment and drain stack. Continue tripping out of hole, lay down BHA and 6 joints of HWDP. SUMMARY Pick up BHA #9, shallow test tools and run into the hole. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2905.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT TBU K10-RD2 CANRIG REPORT FOR Marvin Jones / Rick Brumley DATE Nov 03, 2016 DEPTH 12379 PRESENT OPERATION Testing BOP TIME 24:00:00 YESTERDAY 12362 24 HOUR FOOTAGE 17 CASING INFORMATION 9 5/8 @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.5" HDBS MM75DC PDC 12451966 7x12 11445' 934' 45.75 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 66.1 @ 12367 3.7 @ 12379 23.1 3.71 FT/HR SURFACETORQUE 12508 @ 12366 10094 @ 12375 11398.4 10308.83 FT-LBS WEIGHT ON BIT 12 @ 12378 7 @ 12368 11.4 12.54 KLBS ROTARY RPM 77 @ 12369 72 @ 12378 78.8 75.92 RPM PUMP PRESSURE 2793 @ 12367 2487 @ 12362 2822.9 2648.11 PSI DRILLING FLUIDS REPORT DEPTH 12379' MW 8.9 VIS 74 PV 29 YP 15 FL Gels 12/25/29 CL- FC 0/2 SOL 9.2 SD 0.01 OIL 88.3/11.7 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 11445' TO TD TOOLS DGR, EWR P-4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 23 @ 12370 12 @ 12363 20.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 3338 @ 12370 1299 @ 12363 2682.7 CONNECTION GAS HIGH ETHANE (C-2) 451 @ 12370 216 @ 12363 400.5 AVG PROPANE (C-3) 84 @ 12371 29 @ 12364 52.1 CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG - / 12.5u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 50% Sand/congolomeratic sand 30% Tuffaceous sandstone 20 Tuffaceous siltstone PRESENT LITHOLOGY 50% Sand/congolomeratic sand 30% Tuffaceous sandstone 20 Tuffaceous siltstone DAILY ACTIVITY The rig continued drilling ahead to 12379', pumped a high viscosity sweep then circulated bottoms up. Monitor well (static) pump dry job and SUMMARY begin tripping out of the hole. Trip out of hole to 8383 with a tight spot at 8925' and back ream through it. Shut down for rig service before pulling out to 6564 and rig up BOP testing equipment. Testing BOP at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2905.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CMRIG REPORT FOR Marvin Jones / Rick Brumley DATE Nov 02, 2016 DEPTH 12362 PRESENT OPERATION Drilling TIME 24:00:00 YESTERDAY 12133 24 HOUR FOOTAGE 229 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 12136.84 50.158 230.3354 9282.707 SURVEY DATA 12198.9 53 228.29 9321.2715 12263.62 55.75 225.99 9358.9697 12326.91 58.2823 224.9304 9393.4229 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.5" HDBS MM75DC PDC 12451966 7x12 11445' 917' 44.75 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 66.2 @ 12137 1.5 @ 12356 18.4 4.67 FT/HR SURFACE TORQUE 13038 @ 12281 17 @ 12277 4665.2 41.02 FT-LBS WEIGHT ON BIT 12 @ 12321 1 @ 12193 8.2 8.83 KLBS ROTARY RPM 83 @ 12346 0 @ 12335 32.9 0.00 RPM PUMP PRESSURE 2780 @ 12242 2398 @ 12256 2668.1 2741.10 PSI DRILLING FLUIDS REPORT DEPTH 12340' MW 8.95 VIS 63 PV 19 YP 15 FL Gels 12/25/29 CL- FC 0/2 SOL 8.5 SD 0.01 OIL 85.6/14.4 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 11445' TO TD TOOLS DGR, EWR P-4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 34 @ 12158 9 @ 12300 14.9 TRIP GAS CUTTING GAS 0 @ 12359 0 @ 12359 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 3989 @ 12186 695 @ 12155 1781.0 CONNECTION GAS HIGH ETHANE (C-2) 579 @ 12250 53 @ 12133 250.4 AVG PROPANE (C-3) 141 @ 12187 27 @ 12337 47.3 CURRENT BUTANE (C-4) 160 @ 12293 20 @ 12181 3.2 CURRENT BACKGROUND/AVG 10.9u / 12.5u PENTANE (C-5) 0 @ 12359 0 @ 12359 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 50% Sand 30% Tuffaceous Sandstone 20% Tuffaceous Siltstone PRESENT LITHOLOGY 50% Sand 30% Tuffaceous Sandstone 20% Tuffaceous Siltstone DAILY ACTIVITY SUMMARY The rig continued drilling ahead as per directional driller. MAD pass over 12298'-12327' and continue drilling ahead at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2905.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 C44NRIG REPORT FOR Marvin Rogers / Rick Brumley DATE Nov 01, 2016 DEPTH 12133 PRESENT OPERATION Drilling TIME 24:00:00 YESTERDAY 11919 24 HOUR FOOTAGE 214 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 11948.07 40.72 230.82 9150.043 12012.26 43.24 230.51 9197.7568 12073.91 47.2187 231.3958 9241.167 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.5" HDBS MM75DC PDC 12451966 7x12 11445' 688' 28 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 241.8 @ 12110 0.5 @ 12043 31.1 10.35 FT/HR SURFACE TORQUE 12431 @ 12048 14 @ 11929 3063.6 51.22 FT -LBS WEIGHT ON BIT 15 @ 12043 0 @ 12082 7.3 10.89 KLBS ROTARY RPM 83 @ 12050 0 @ 12105 14.1 0.22 RPM PUMP PRESSURE 2849 @ 12056 2450 @ 12044 2669.7 2716.95 PSI DRILLING FLUIDS REPORT DEPTH 12121' MW 9.0 VIS 61 PV 19 YP 13 FL Gels 12/25/29 CL - FC 0/2 SOL 8.5 SD 0.05 OIL 86.1/13.9 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 11445' TO TO TOOLS DGR, EWR P-4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 35 @ 11970 9 @ 12132 18.8 TRIP GAS 27u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 6192 @ 11970 678 @ 12131 2689.5 CONNECTION GAS HIGH ETHANE (C-2) 430 @ 11970 46 @ 12128 225.3 AVG PROPANE (C-3) 271 @ 11970 27 @ 12132 107.3 CURRENT BUTANE (C-4) 107 @ 11970 20 @ 12118 21.4 CURRENT BACKGROUND/AVG 13.2u / 9.4u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Sand 30% Tuffaceous Sandstone 20% Tuffaceous Siltstone 10% Coal PRESENT LITHOLOGY 50% Sand 30% Tuffaceous Sandstone 20% Tuffaceous Siltstone DAILY ACTIVITY The rig finished circulating bottoms up then short tripped out to 11545', checked for flow (static), then ran back to bottom. Drill to 12047' SUMMARY then service the rig. Continue drilling as per directional driller. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2905.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CANRIG REPORT FOR Marvin Rogers / Steve Lawrence DATE Oct 31, 2016 DEPTH 11919' PRESENT OPERATION Circulating TIME 24:00:00 YESTERDAY 11541' 24 HOUR FOOTAGE 378' CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 11632.57 38.77 232.98 8908.0293 11697.15 40.03 231.22 8957.9326 SURVEY DATA 11760.13 39.8 230.35 9006.2383 11822.85 39.9556 230.0576 9054.3711 11886.52 40.03 229.68 9103.15 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.5" HDBS MM75DC PDC 12451966 7x13 11445' 474' 16.75 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 193.5 @ 11546 1.5 @ 11605 41.2 35.60 FT/HR SURFACE TORQUE 51973 @ 11608 4 @ 11569 9663.4 8676.58 FT-LBS WEIGHT ON BIT 25 @ 11561 1 @ 11563 6.6 6.90 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 2871 @ 11590 2171 @ 11561 2573.7 2691.45 PSI DRILLING FLUIDS REPORT DEPTH 11507 MW 9.0 VIS 79 PV 30 YP 15 FL Gels 12/31/40 CL- FC 0/2 SOL 8.1 SD 0.05 OIL 84.5/15.5 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 11445' TO TD TOOLS DGR, EWR P-4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 60 @ 11910 6 @ 11670.00000 16.3 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 13272 @ 11911 571 @ 11669 2890.2 CONNECTION GAS HIGH ETHANE (C-2) 518 @ 11911 46 @ 11661 98.0 AVG PROPANE (C-3) 161 @ 11844 28 @ 11736 41.9 CURRENT BUTANE (C-4) 57 @ 11756 20 @ 11745 1.1 CURRENT BACKGROUND/AVG 4.3u / 16.3 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Tuffaceous sandstons 30% Tuffaceous Siltstone 105 Sand 10% Tuffaceous claystone 10% Coal PRESENT LITHOLOGY 80% Coal 10% Tuffaceous sandstone 10% Tuffaceous siltstone DAILY ACTIVITY Continue drilling ahead as per directional driller while troubleshooting auto driller. Circulate bottoms up at 11919' MD and prep for a SUMMARY short trip. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CANRIG REPORT FOR Marvin Rogers / Steve Lawrence DATE Oct 30, 2016 DEPTH 11541' PRESENT OPERATION Drilling TIME 24:00:00 YESTERDAY 11445' 24 HOUR FOOTAGE 96' CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 11442' 33.10 239.35 8754.00' 11506' 35.02 237.54 8806.88' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.5" HDBS MM75DC PDC 12451966 7x13 11445' 96' 3.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 166.8 @ 11472 3.7 @ 11533 36.0 29.92 FT/HR SURFACE TORQUE 6408 @ 11472 0 @ 11505 2726.3 1235.31 FT-LBS WEIGHT ON BIT 14 @ 11507 0 @ 11446 5.4 5.19 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 2951 @ 11463 2446 @ 11541 2775.7 2446.42993 PSI DRILLING FLUIDS REPORT DEPTH 11507 MW 9.0 VIS 79 PV 30 YP 15 FL Gels 12/31/40 CL- FC 0/2 SOL 8.1 SD 0.05 OIL 84.5/15.5 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 11445' TO TD TOOLS DGR, EWR P-4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 23 @ 11469 6 @ 11515.00000 12.5 TRIP GAS 72u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 5063 @ 11469 796 @ 11515 2306.5 CONNECTION GAS HIGH ETHANE (C-2) 93 @ 11445 47 @ 11533 2.4 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 9.8u / 12.5u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Tuffaceous Sandstone 30% Sand 20% Tuffaceous Siltstone 10% Tuffaceous claystone PRESENT LITHOLOGY 40% Tuffaceous Sandstone 40% Sand 10% Tuffaceous Siltstone 10% Tuffaceous claystone DAILY ACTIVITY The rig continued running into the hole breaking circulation at 3029', 5991' and 8387'. Once at the shoe they oriented the MWD tools to the SUMMARY high side to enter the window. Run in hole to 8724' where resistance was met. Set 12K down with a pick up of 120K to break loose. Took 3 attempts to pass. Continue running in hole washing last two stands down to bottom. Drilling ahead as per directional driller at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CANRIG REPORT FOR Marvin Rogers / Steve Lawrence DATE Oct 29, 2016 DEPTH 11445 PRESENT OPERATION Trip in hole TIME 24:00:00 YESTERDAY 11445 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8 @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS MM75DC PDC 12321785 7x12 8696' 11445' 2749' 49.1 1-4-BT-G-X-1-NO DTF 3 8.5" HDBS MM75DC PDC 12451966 7x13 11445' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 11445' MW 9.0 VIS 147 PV 25 YP 18 FL Gels 11/30/39 CL- FC 0/2 SOL 7.8 SD 0.05 OIL 83.4/16.6 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 11445' TO TD TOOLS DGR, EWR P-4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No New Footage Drilled DAILY Finish Laying down BHA and downloading memory data. Pick up new BHA as per directional driller and begin running in hole. Shallow test ACTIVITY MWD (good). Top drive elevator spudded stands in the derrick, secured area, pick up top drive, secured stand in elevator, pick up stand with SUMMARY lifting eye, racked stand back in derrick. Inspect top drive and derrick. Change out power elevators to manual elevators. Repair top drive. Continue running into the hole to 2336' at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field K10-RD2 DAILY WELLSITE REPORT GtNRIG REPORT FOR Marvin Rogers / Steve Lawrence DATE Oct 28, 2016 DEPTH 11445 PRESENT OPERATION L/D BHA TIME 24:00:00 YESTERDAY 11445 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8 @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS MM75DC PDC 12321785 7x12 8696' 2749' 49.1 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENTAVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 11445' MW 9.0 VIS 89 PV 25 YP 14 FL Gels 9/22/29 CL- FC 0/2 SOL 8.3 SD 0.05 OIL 84.4/15.6 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 8696' TO TO TOOLS DGR, EWR P4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 1.6u / 1.6u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No New Footage Drilled The rig continued to cut and slip drill line, cut approximately 180', set and calibrated weight indicators. Repair rig with automated rig techs, DAILY change out pulsation dampener on mud pump number 2. Change out shaker screens and take on rig fuel. Troubleshoot top drive extend while ACTIVITY continuing to service mud pumps. Trip in hole from 8240' to 8523'. Condition mud and circulate, purge mud pumps 1 and 2. Attempt to SUMMARY communicate with MWD tools. Circulate while mixing a dry job, shut down and check for flow (static), pump dry job and pull out of hole. Laying down BHA at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CoMRIG REPORT FOR Marvin Rogers / Steve Lawrence DATE Oct 27, 2016 DEPTH 11445 PRESENT OPERATION Servicing Mud Pump TIME 24:00:00 YESTERDAY 11445 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8 @ 8445 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS MM75DC PDC 12321785 7x12 8696' 2749' 49.1 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 11445' MW 8.95 VIS 76 PV 24 YP 13 FL Gels 9/22/29 CL- FC 0/2 SOL 8.1 SD 0.05 OIL 84.5/15.5 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 8696' TO TD TOOLS DGR, EWR P-4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 1.6u / 1.6u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No New Footage Drilled The rig continued to troubleshoot the MWD, unable to read tool face. Pump sweep and circulate until it returns. Check for flow, dropped 2" static. DAILY Pump dry job and pull out of hole to 10038'. Stop to check well and stop hole fill to drop fluid in riser for BOP test. Trip out to 8335', monitor well ACTIVITY (static). Rig up for BOP test and begin testing. Test top pipe rams, dart valve, TIW valve, IBOP, manual IBOP, DEMCO/outside/inside on kill line, SUMMARY HCR/manual on choke line, all choke manifold valves, bottom pipe rams and blind rams at 250psi low to 3500psi high. Test super choke and manual choke at 1500psi. Rig down BOP testing equipment and continue working on mud pump number 1 at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CANRIG REPORT FOR Marvin Rogers / Steve Lawrence DATE Oct 26, 2016 DEPTH 11445' PRESENT OPERATION Circulate/troubleshoot MWD tools TIME 24:00:00 YESTERDAY 11102' 24 HOUR FOOTAGE 343' CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 11131.81' 27.4392 250.3463 8485.7168' 11192.92' 28.9094 248.9716 8539.585' SURVEY DATA 11258.73' 29.7945 246.1361 8596.9492' 11320.35' 30.9606 243.3605 8650.1104' 11383.38' 31.9658 241.0721 8703.875' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS MM75DC PDC 12321785 7X12 8696' 2749' 49.1 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 652.3 @ 11352 1.0 @ 11325 58.1 44.66 FT/HR SURFACE TORQUE 19 @ 11295 0 @ 11397 7.4 12.60 FT-LBS WEIGHT ON BIT 77 @ 11363 0 @ 11160 10.6 9.20 KLBS ROTARY RPM 83 @ 11240 29 @ 11102 39.3 76.10 RPM PUMP PRESSURE 3323 @ 11249 1616 @ 11102 2891.2 2871.03 PSI DRILLING FLUIDS REPORT DEPTH 11435' MW 8.95 VIS 73 PV 28 YP 15 FL Gels 10/27/38 CL- FC 0/2 SOL 7.9 SD 0.05 OIL 82.8/17.2 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 8696' TO TO TOOLS DGR, EWR-P4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 37 @ 11123' 5 @ 11214' 12.9 TRIP GAS CUTTING GAS @ @ WIPER GAS 27u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 8225 @ 11356' 534 @ 11278' 2034.0 CONNECTION GAS HIGH ETHANE (C-2) 255 @ 11432' 43 @ 11323' 48.2 AVG PROPANE (C-3) 31 @ 11426' 28 @ 11423' 0.3 CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 8.1u / 12u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Tuffaceous Sandstone 20% Tuffaceous siltstone 20% Sand 10% Coal PRESENT LITHOLOGY 50% Tuffaceous Sandstone 30% Tuffaceous siltstone 10% Sand 10% Coal DAILY ACTIVITY Continue Tripping into the hole and wash to bottom. The rig checked the well for flow (static). Continue to drill ahead as per directional SUMMARY driller. Obtain slow pump rates at 11 270'and continue drilling ahead. Troubleshoot MWD tools at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CANRIG REPORT FOR Marvin Rogers / Steve Lawrence DATE Oct 25, 2016 DEPTH 11102' PRESENT OPERATION Rig Service TIME 24:00:00 YESTERDAY 10512' 24 HOUR FOOTAGE 590' CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 10751.32 24.208 256.2601 8141.269 10813.06 24.3309 256.613 8197.5527 SURVEY DATA 10876.55 24.8126 256.7437 8255.293 10940.96 24.4119 256.3909 8313.8516 11005.04 25.25 254.10 8372.01 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS MM75DC PDC 12321785 7X12 8696' 2406 38.2 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 1021.0 @ 11102 2.6 @ 10982 80.7 1020.97 FT/HR SURFACE TORQUE 19 @ 10971 0 @ 11096 11.6 12.68 FT-LBS WEIGHT ON BIT 26 @ 11019 0 @ 10811 11.3 24.70 KLBS ROTARY RPM 84 @ 11016 0 @ 10812 61.9 29.07 RPM PUMP PRESSURE 3373 @ 10512 1554 @ 11101 3023.6 1616.06 PSI DRILLING FLUIDS REPORT DEPTH 11102' MW 9.0 VIS 65 PV 26 YP 16 FL Gels 9/24/37 CL- FC 0/2 SOL 7.5 SO 0.05 OIL 83.0/17.0 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 8696' TO TD TOOLS DGR, EWR-P4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 168 @ 10601 6 @ 11102 25.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 39728 @ 10601 554 @ 11102 4955.3 CONNECTION GAS HIGH ETHANE (C-2) 100 @ 11042 43 @ 10699 7.5 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 2.5u / 9.Ou PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Tuffaceous siltstone 20% Tuffaceous Sandstone 20% Sand, 10% Tuffaceous Claystone 10% Coal PRESENT LITHOLOGY 30% Tuffaceous Sandstone 30% Sand 20% Tuffaceous siltstone, 10% Tuffaceous Claystone 10% Coal The rig continued to drill ahead to 10668' as per directional driller. Repaired leaking hydraulic line on HPU return. Continue drilling ahead to DAILY 11047' as per directional driller. HPU number two down, melted wire on exhaust manifold. Circulate and work pipe while repairing HPU. ACTIVITY Resume drilling to 11102'. Circulate while replacing seat on mud pump number two. Perform short trip to 10348' while repairing pump. SUMMARY Repairing pump and tripping back in hole at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur Field DAILY WELLSITE REPORT K10-RD2 CANRIG REPORT FOR Shane Hauck / Rance Pederson DATE Oct 24, 2016 DEPTH 10512' PRESENT OPERATION Drilling TIME 24:00:00 YESTERDAY 10006' 24 HOUR FOOTAGE 506' CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 10245.67 24.05 257.55 7681.54 10308.55 23.76 257.37 7739.03 SURVEY DATA 10371.01 24.98 256.92 7795.92 10435.72 24.72 256.55 7854.64 10497.85 24.63 256.67 7911.1 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS MM75DC PDC 12321785 7X12 8696' 1816' 28.75 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 238.8 @ 10371 3.8 @ 10020 89.8 87.19 FT/HR SURFACE TORQUE 22 @ 10291 0 @ 10006 13.4 17.13 FT-LBS WEIGHT ON BIT 19 @ 10455 1 @ 10142 11.5 12.06 KLBS ROTARY RPM 84 @ 10315 0 @ 10006 65.7 77.06 RPM PUMP PRESSURE 3373 @ 10512 2521 @ 10060 2966.6 3373.89 PSI DRILLING FLUIDS REPORT DEPTH 10413' MW 9.0 VIS 63 PV 27 YP 12 FL Gels 9/21/30 CL- FC 0/2 SOL 7.4 SD 0.05 OIL 81.2/18.8 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 8696' TO TO TOOLS DGR, EWR P-4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 276 @ 10259 8 @ 10031 46.9 TRIP GAS CUTTING GAS @ @ WIPER GAS 43u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 64032 @ 10260 1274 @ 10031 10422.8 CONNECTION GAS HIGH ETHANE (C-2) 76 @ 10508 44 @ 10493 3.2 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 20u / 15u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40%Tuffaceous siltstone 20% Sand 20% 10% Sandstone Coal 10% Tuffaceous claystone PRESENT LITHOLOGY 40%Tuffaceous siltstone 40% Sand 10% Coal 10% Tuffaceous claystone The rig continued to troubleshoot pump 2 while prepping high viscosity sweep. Pump sweep to clean hole, returns 30% more cuttings. Break DAILY top drive off stump, make up on stand 149, orient tools and continue drilling. Swivel pack began leaking so the rig short tripped to 9812', ACTIVITY repair/replace washpipe and service top drive. Continue drilling to 10413', check for flow (static), circulate bottoms up and short trip out of hole SUMMARY to 9344'. Trip back into hole, pump high viscosity sweep and continue drilling ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CANRIG REPORT FOR Shane Hauck / Rance Pederson DATE Oct 23, 2016 DEPTH 10006' PRESENT OPERATION Repairing pump #2 TIME 24:00:00 YESTERDAY 9276' 24 HOUR FOOTAGE 730' CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9677.15 23.56 255.94 7160.87 9741.44 23.35 255.90 7219.85 SURVEY DATA 9803.84 23.08 256.07 7277.20 9866.87 24.16 255.79 7334.94 9929.45 23.28 256.43 7392.24 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS MM75DC PDC 12321785 7X12 8696' 1310' 20.75 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 573.5 @ 9593 3.0 @ 9826 100.0 23.97 FT/HR SURFACE TORQUE 19 @ 9848 0 @ 9360 12.9 0.48 FT-LBS WEIGHT ON BIT 27 @ 9846 1 @ 9635 10.8 3.44 KLBS ROTARY RPM 83 @ 9778 0 @ 9826 71.8 0.06 RPM PUMP PRESSURE 3333 @ 9848 2175 @ 9885 2870.9 2866.06 PSI DRILLING FLUIDS REPORT DEPTH 10,005 MW 9.1 VIS 65 PV 23 YP 18 FL Gels 9/21/34 CL- FC 0/2 SOL 7.4 SO 0.05 OIL 81.2/18.8 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 8696' TO TO TOOLS DGR, EWR P-4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 876 @ 9877 11 @ 9468 95.5 TRIP GAS CUTTING GAS @ @ WIPER GAS 28u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 191405 @ 9877 1782 @ 9468 21197.5 CONNECTION GAS HIGH ETHANE (C-2) 176 @ 9683 43 @ 9634 5.9 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 30u / 35u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Tufaceous Siltstone 20% Sandstone 20% Sand 10% tuffaceous claystone 10% coal PRESENT LITHOLOGY 40% Tuffaceous siltstone 30% sandstone 10% Tuffaceous daystone 10% Sand 10% Coal DAILY ACTIVITY The rig continued to drill ahead as per the directional driller. Circulate bottoms up and short trip at 9466' to 8902'. Pull through tight spot at SUMMARY 8849' with 25k overpull. Wash down from 9409' to 9466' and continue drilling ahead. Obtain slow pump rates at 9560' then continue drilling ahead. Circulating while repairing mud pump number 2 at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 BRIG REPORT FOR DATE Oct 23, 2016 DEPTH 9276 PRESENT OPERATION Drilling TIME 24:00:00 YESTERDAY 8696 24 HOUR FOOTAGE 580 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8983.00 33.58 260.80 6537.88 9046.35 31.97 262.41 6591.14 SURVEY DATA 9109.8 30.26 260.93 6645.46 9173.18 28.57 259.3 6700.67 9235.72 26.51 258.03 6756.12 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS MM75DC PDC 12321785 7x12 8696' 580' 11.00 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 211.2 @ 9119 1.9 @ 8816 66.8 29.69 FT/HR SURFACE TORQUE 13 @ 9152 0 @ 8723 7.3 0.00 KFT-LBS WEIGHT ON BIT 34 @ 8826 2 @ 9005 11.9 11.70 KLBS ROTARY RPM 83 @ 8912 0 @ 8711 48.0 0.20 RPM PUMP PRESSURE 3202 @ 9166 2300 @ 8881 2834.9 3090.42 PSI DRILLING FLUIDS REPORT DEPTH 9189 MW 9.00 VIS 64 PV 27 YP 13 FL Gels 10/24/32 CL_ FC 0/2 SOL 6.9 SD 0.05 OIL 80.2/19.8 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 8696' TO TD TOOLS DGR, EWR-P4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 132 @ 8975 11 @ 8882 33.7 TRIP GAS 29u CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C-1) 30863 @ 8975 1754 @ 8881 7072.6 CONNECTION GAS HIGH - ETHANE (C-2) 85 @ 9159 44 @ 9150 3.9 AVG - PROPANE (C-3) @ @ CURRENT - BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 18u / 21 u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 30% Sand 30 % Tuffaceous siltstone 20% Coal 10% Coal 10% Tuffaceous claystone PRESENT LITHOLOGY 40% Tuffaceous siltstone 30% Sand 20% Tuffaceous claystone 10% Carbonaceous shale DAILY ACTIVITY The rig continued to trip into the hole at 30 fpm. Orientate BHA at stand 124 to go through window. Trip in hole from 8397' to 8554' and ream SUMMARY to 8586' then circulate bottoms up and work pipe. Calculated displacement 9.06 bbls actual 10.68bbls. The rig reamed from 8586' to 8696' and drilled ahead. Continuing to drill ahead at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CANRIG REPORT FOR Shane Hauck / Rance Pederson DATE Oct 21, 2016 DEPTH 8696 PRESENT OPERATION Trip in TIME 24:00:00 YESTERDAY 8696 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 5.92" V613PDG PDC 4008502 6x12 8486' 8696' 233' 17.3 2-8-JD-G-X-2-RO PR 2 8.5" HDBS MM75DC PDC 12321785 7x12 8696' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 8696' MW 8.8 VIS 112 PV 27 YP 13 FL Gels 10/22/29 CL- FC 0/2 SOL 6.1 SD 0.05 OIL 79.3/20.7 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 8696' TO TD TOOLS DGR, EWR-P4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 2.5 / 2.5 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled The rig continued to trip out of the hole while checking tool faces and threads and lay down the BHA. Make up BHA number 7, trip into the hole DAILY to 645' and test MWD tools. Slip and cut 1 00'of drill line then continue into the hole filling drill pipe at 3166' and 6316'. Lose displacement at ACTIVITY 5314', monitor hole (static), continue in hole at slower rate (30 fpm). Service the rig then continue in hole to 6885' getting full displacement and SUMMARY capacity. 6bbls over calculated displacement at the end of tour. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CANRIG REPORT FOR Shane Hauck / Rance Pederson DATE Oct 20, 2016 DEPTH 8696 PRESENT OPERATION POOH TIME 24:00:00 YESTERDAY 8696 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BITINFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 5.92 V613PDG PDC 4008502 6x12 8486' 8696' 233' 17.3 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 8696' MW 8.8 VIS 81 PV 27 YP 14 FL Gels 11/21/29 CL- FC 0/2 SOL 6.0 SD 0.05 OIL 79.3/20.7 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 8482' TO 8696' TOOLS DGR, EWR-P4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG -/ 2.2u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled The rig continued to test the BOP while working on mud pump number 2. Tested lower pipe rams, choke valves 15, 16, 6, 11, 4, 5, IBOP, Dart, DAILY demco, 7, 14, 2, 9, 13, inside and outside manual kill from 250psi low to 3500psi high. Drain stack and change rubber seal on test plug and fill ACTIVITY stack. Make up head pin and test hoses. Resume testing BOP valves 12, 8, 1, upper pipe rams, HCR, Inside manual choke, lower Kelly valve SUMMARY and blind rams from 250psi low to 3500psi high. Test annular to 250psi low 2500psi high. Continue testing blind rams, superchoke and manual choke. Finish testing and rig down testing equipment and blow down lines. Monitor well (static). Continue to pullout of the hole to 644' at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CANRIG REPORT FOR Shane Hauck / Rance Pederson DATE Oct 19, 2016 DEPTH 8695 PRESENT OPERATION Testing BOP TIME 24:00:00 YESTERDAY 8638 24 HOUR FOOTAGE 57 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 5.92 V613PDG PDC 4008502 6x12 8482' 233' 17.3 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 36.0 @ 8668 0.2 @ 8639 10.3 8.87 FT/HR SURFACE TORQUE 12 @ 8661 0 @ 8645 5.1 0.52 FT-LBS WEIGHT ON BIT 17 @ 8690 0 @ 8641 9.0 16.3 KLBS ROTARY RPM 82 @ 8662 2 @ 8652 28.4 0.00 RPM PUMP PRESSURE 2879 @ 8671 883 @ 8660 2678.4 2570.15 PSI DRILLING FLUIDS REPORT DEPTH 8695' MW 8.8 VIS 70 PV 29 YP 14 FL Gels 11/22/32 CL- FC 0/2 SOL 5.7 SD 0.05 OIL 79.3/20.7 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 8482 TO TO TOOLS DGR, EWR-P4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 61 @ 8692 6 @ 8658 18.2 TRIP GAS CUTTING GAS 0 @ 8695 0 @ 8695 0.0 WIPER GAS 11u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 13496 @ 8692 467 @ 8658 3059.4 CONNECTION GAS HIGH ETHANE (C-2) 382 @ 8673 50 @ 8648 65.7 AVG PROPANE (C-3) 0 @ 8695 0 @ 8695 0.0 CURRENT BUTANE (C-4) 0 @ 8695 0 @ 8695 0.0 CURRENT BACKGROUND/AVG 0 / 11 u PENTANE (C-5) 0 @ 8695 0 @ 8695 0.0 HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Sand 30% Tuffaceous siltstone, 20% Sandstone 10% Coal PRESENT LITHOLOGY 80% Coal 20% Sand DAILY ACTIVITY The rig continued to slide from 8638' to 8641'. Trip to shoe and change out saver sub, hole static. Trip back into hole, orient toolface and SUMMARY continue sliding through 8660'. Rotate and drill from 8660' to 8678'. Slide again from 8678' to 8696', circulate bottoms up and monitor well (static). Pull out of hole to 5815' and begin testing the BOP at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CoMRIG REPORT FOR Shane Hauck / Rick Brumley DATE Oct 18, 2016 DEPTH 8638' PRESENT OPERATION Drilling TIME 24:00:00 YESTERDAY 8462' 24 HOUR FOOTAGE 176' CASING INFORMATION 9 5/8" @ 9445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 5.92 V613PDG PDC 4008502 6X12 8482 176' 10 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 189.4 @ 8501 0.9 @ 8462 46.3 6.30 FT/HR SURFACE TORQUE 10 @ 8542 0 @ 8595 3.6 0.35 FT-LBS WEIGHT ON BIT 72 @ 8520 0 @ 8636 10.4 14.94 KLBS ROTARY RPM 94 @ 8472 0 @ 8619 25.7 0.00 RPM PUMP PRESSURE 2657 @ 8585 273 @ 8462 2284.6 2419.94 PSI DRILLING FLUIDS REPORT DEPTH 8638' MW 8.8 VIS 72 PV 20 YP 14 FL Gels 12/21/24 CL- FC 0/1 SOL 5.1 SD 0.05 OIL 78.5/21.5 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 8482 TO TO TOOLS DGR, EWR-P4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 37 @ 8583 1 @ 8525 8.4 TRIP GAS - CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY(ppm) SURVEY- METHANE (C-1) 8765 @ 8583 36 @ 8467 1557.8 CONNECTION GAS HIGH - ETHANE (C-2) @ @ AVG - PROPANE (C-3) @ @ CURRENT- BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 7 / 9 PENTANE (C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 30% Sand, 30% Sandstone, 20% Tuffaceous Siltstone, 10% coal, 10% cement PRESENT LITHOLOGY 60% Coal, 20% Sandstone 20% Cement DAILY ACTIVITY The rig continued troubleshooting communication issues with the MWD tools. Started sliding from 8482' to 8511'. The rig worked pipe while SUMMARY troubleshooting mud pump number 2. Continue sliding from 8511' to 8553' then drill down to 8585'. Work on mud pump number two again. Time drill at 12 ROP from 858' to 8600'. Slide from 8600' to 8638' at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CMRIG REPORT FOR Shane Hauck / Rick Brumley DATE Oct 17, 2016 DEPTH 8482' PRESENT OPERATION Circulating TIME 24:00:00 YESTERDAY 8482' 24 HOUR FOOTAGE 0' CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 5.92 V613PDG PDC 4008502 6X12 8482' - DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH MW 8.8 VIS 109 PV 24 YP 16 FL Gels 14/26/31 CL- FC 0/1 SOL 5.1 SD 0.05 OIL 81.7/18.3 MBT pH Ca+ CCI MWD SUMMARY INTERVAL 8482 TO TD TOOLS DGR, EWR-P4 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 1 u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0.6 / 0.6 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY The rig completed the FIT with a 12.5 ppg EM W. After rigging down the test equipment they pumped a dry job and pulled out of the hole. SUMMARY Pulled to 684' and checked for flow (static). L/D milling BHA, pick up BHA number 6 and begin tripping into the hole. Shallow test tools. Continue tripping in hole, breaking circulation every 3000'. Conditioning mud and circulating at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CANRIG REPORT FOR Shane Hauck / Rick Brumley DATE Oct 16, 2016 DEPTH 8482 PRESENT OPERATION Prep for FIT TIME 24:00:00 YESTERDAY 8462 24 HOUR FOOTAGE 19 CASING INFORMATION 9 5/8" @ 8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 8.5" Milltooth 12492925 8462 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 75.5 @ 8476 2.4 @ 8463 41.0 72.57 FT/HR SURFACE TORQUE 10 @ 8468 6 @ 8472 8.6 8.09 FT-LBS WEIGHT ON BIT 20 @ 8463 1 @ 8464 6.8 3.47 KLBS ROTARY RPM 94 @ 8472 75 @ 8465 92.9 91.26 RPM PUMP PRESSURE 1838 @ 8467 671 @ 8463 1662.8 1772.08 PSI DRILLING FLUIDS REPORT DEPTH MW 8.75 VIS 122 PV 24 YP 16 FL Gels 13/31/34 CL- FC 0/1 SOL 5.2 SD 0.05 OIL 81.8/18.2 MBT pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS None GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 4 @ 8480 1 @ 8467 2.8 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 642 @ 8480 36 @ 8467 337.3 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG - / 1.6 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Cement, 40% Carbonaceous Siltstone, 10% Coal/carbonaceous shale, 5 % Sand, 5% Metal PRESENT LITHOLOGY 40% Cement, 40% Carbonaceous Siltstone, 10% Coal/carbonaceous shale, 5 % Sand, 5% Metal The rig worked on various housekeeping projects around the rig while waiting for the Pollard slick liners. Once Pollard arrived the crew rigged up their slick line and commenced fishing operations. The first run would not go through the stack. Rig up 4" centralizer and started second run but DAILY couldn't get past 51'. On the 3rd run Pollard rigged up an impression block and tripped into the hole to 900'. The fourth run Pollard rigged up a 2 ACTIVITY /," magnet and ran in the hole to 8463'. Recovered only metal shavings. 3 W magnet on the 5th run was a no go. Rigged up 8.1" junk basket for SUMMARY the 6th run and got that down to 900'. Pulled out to check basket (nothing). 7th run into hole with junk basket to 8400'. Rig down Pollard unit and pick up milling BHA. Perform rig service before running into the hole, stopping at 2500', 5000' and 7300' to fill pipe. Trip to bottom and continue milling window. Mill down to 8482', circulate bottoms up and prep for FIT. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CMRIG REPORT FOR Shane Hauck / Rick Brumley DATE Oct 15, 2016 DEPTH 8462 PRESENT OPERATION Waiting on slick line TIME 24:00:00 YESTERDAY 8462 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 8.5" Window Mill 12492925 8462 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH MW 8.7 VIS 101 PV 33 YP 15 FL Gels 18/34/43 CL- FC 0/1 SOL 5.0 SD 0.05 OIL 82.3/17.7 MBT pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS None GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY The rig held a PJSM for pulling the rest of the string out of the hole. The picked up the new window mill BHA, performed rig service and tripped DAILY back in the hole. At 3317' the slip die fell out of the slip body, sucked out the flow box and drain riser to look for slip die. Began pulling out of the ACTIVITY hole while filling every 5 stands to keep fluid down near wear ring. OBM began splashing outside of containment at the flowbox so the crew shut SUMMARY down to clean up and divert to secondary containment. Continue pulling out of the hole to surface. Fishing with T-Bar magnet at well head. Inspect the BHA and organize the rig floor. L/D mill BHA and performing housekeeping at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-RD2 CoMRIG REPORT FOR Shane Hauck / Rick Brumley DATE Oct 14, 2016 DEPTH 8462 PRESENT OPERATION POOH TIME 24:00:00 YESTERDAY 8445 24 HOUR FOOTAGE 17 CASING INFORMATION 9 5/8" @8445' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 8.5" Window Mill 12360957 8445' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 32.4 @ 8459 0.8 @ 8458 4.7 2.39 FT/HR SURFACE TORQUE 33 @ 8454 5 @ 8459 25.6 7.34 AMPS WEIGHT ON BIT 20 @ 8463 4 @ 8449 9.8 20.86 KLBS ROTARY RPM 101 @ 8453 60 @ 8459 98.9 86.78 RPM PUMP PRESSURE 2604 @ 8450 273 @ 8462 1865.2 671.01 PSI DRILLING FLUIDS REPORT DEPTH MW 8.7 VIS 71 PV 25 YP 15 FL Gels 13/32/38 CL- FC 0/1 SOL 4.9 SO 0.05 OIL 76.0/17.0 MBT pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS None GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 10 @ 8454 5 @ 8463 5.4 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 1020 @ 8454 129 @ 8463 317.6 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 2.2 / 3.5 PENTANE (C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% sandstone 30% Carbonaceous siltstone 20% sand 10% Claystone PRESENT 40% sandstone 30% Carbonaceous siltstone 20% sand 10% Claystone (Overall 10% metal shavings, 10% cement and 70% nutt plug in LITHOLOGY bottoms up sample) The rig continued cleaning pits in preparation for OBM. Once OBM was on board obtained slow pump rates: MP1 1-15 spm = 250 psi, 30 spm = DAILY 370 psi; MP2 2-15 spm = 260 psi, 30 spm = 370 psi with 8.9 ppg mud. Bring both pumps on at 350 gpm / 2450 psi ICP with cold mud. Tag up at ACTIVITY 8443' while rotating and mill 8443'to 8446' at various parameters per DD. Continued to mill to 8462' then circulate bottoms up at 486 bbls. SUMMARY Maximum gas units was 10 @ 8454'. Monitor the well and pump a dry job. The rig performed various service to the rig then began pulling out of the hole. The rig pulled out to 1129' at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2588.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McAruthur River Field DAILY WELLSITE REPORT CANRIG K10-RD2 REPORT FOR Shane Hauck, Rick Brumley DATE Oct. 13, 2016 DEPTH 8466' PRESENT OPERATION Clean pits TIME 24:00:00 YESTERDAY 8466' 24 HOUR FOOTAGE 0' CASING INFORMATION 9 5/8" @ 8466' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 8.5" Window Mill 12360957 8463' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH Cased Hole MW 8.70 VIS PV 29 YP 18 FL Gels 11/31/36 CL- FC SOL 4.8 SD OIL 73.0/20.0 MBT pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS None GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 149 @ Circulating @ TRIP GAS 149 CUTTING GAS @ @ WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG NA PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 / 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Cased Hole PRESENT LITHOLOGY The rig continued to prep for displacing to OBM. Built berm for metal cuttings barrel, foam cracks and gaps in cellar. Install low torque valve and tee on mud line from mud pump 1 to production pigline and pressure test. Deck drain plugs between sub and mud pump in, installed valve on DAILY mousehole drain. The welders continued to work on the shakers. The rig installed psi sensors for drillers console. The rig held a PJSM for ACTIVITY displacing to OBM. The rig then pumped 23 bbls spacer (3 bpm @ 360 psi). Equalize pressure. With pipeline 100 psi over pump 3 BPM SUMMARY increasing to 5 BPM from 465 to 620 psi. Pump a total of 567 bbls total. Continue pumping out pits to pipe line 3 bpm @ 500 psi. shut in pipeline. 717 bbls pumped to trading bay. The rig then began cleaning the pits and lines in preparation to mill out the window. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2855.00 REPORT BY Josh Dubowski Hilcorp Alaska, LLC McAruthur River Field DAILY WELLSITE REPORT K10-RD2 C44NRIG REPORT FOR Shane Hauck, Rick Brumley DATE Oct. 12, 2016 DEPTH 8466' PRESENT OPERATION Rig Service TIME 24:00:00 YESTERDAY 8466' 24 HOUR FOOTAGE 0' CASING INFORMATION 9 5/8" @ 8466' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 8.5" Window Mill 12360957 8463' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH Cased Hole MW 8.50 VIS 27 PV YP FL 7.2 Gels CL- FC SOL SD OIL MBT pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS Directional tool for orientating the whip stock GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 197 @ Circulating @ TRIP GAS 197 CUTTING GAS @ @ WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG NA PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 / 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Cased Hole PRESENT LITHOLOGY The rig ran in the hole with the whipstock to 4240' MD at which point circulation was broken. The whipstock was hung off. The rig prepared to DAILY test the blow out preventers. The blow out preventers were tested and was witnessed by the AOGCC, Bob Noble. The BOP test equipment was ACTIVITY rigged down. The rig continued to run in the hole with the whipstock to 8377' MD. Circulation was broken and the rig washed down to 8395' MD. SUMMARY The maximum amount of gas observed while pumping was 197 units. The whipstock was orientated and set at 8466' MD (driller's depth). The rig was serviced. CANRIG PERSONNEL ON BOARD 2 DAILY COST $1970.00 REPORT BY Tollef Winslow Hilcorp Alaska, LLC McArthur River Field DAILY WELLSITE REPORT K10-R D2 CoMRIG REPORT FOR Shane Hauck / Rick Brumley DATE Oct. 11, 2016 DEPTH 8453' PRESENT OPERATION Running in the hole with whipstock assembly TIME 24:00:00 YESTERDAY 8453' 24 HOUR FOOTAGE 0' CASING INFORMATION 9 5/8" @ 8453' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 8.5" Window Mill 12360957 8453' 0 0 Tripping In DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH Cased Hole MW 8.50 VIS 27 PV YP FL Gels CL- FC SOL SD OIL MBT pH 7.2 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS No MWD/LWD tools in the hole GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS No @ Circulation @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Cased Hole PRESENT LITHOLOGY The rig and Pollard E-Line rigged up the a-line system with a bridge plug. The E-line crew ran the bridge plug into the hole and set it at 8453' measured wireline depth. After setting the bridge plug, the a-line crew pulled their tools out of the hole and rigged down their equipment. The rig DAILY crew cut and slip 108' of drilling line as well as serviced the rig. The rig crew prepared to pick up the whipstock / milling BHA under the direction of ACTIVITY the Baker Hughes representative, concurrently the pits were cleaned in preparation for repairs to be made by the welder. Four (4) inch heavy SUMMARY weight drill pipe was picked up and stood back. The wear ring was pulled while the welder worked on the pits. The rig floor was sealed. The rig continued to pick up the whipstock / milling BHA and 21 total joints of four (4) inch heavy weight drill pipe. The heavy weight drill pipe was drifted. The pumps were engaged to 300 gpm @ 730 psi to test the tools in preparation of running in the hole. CANRIG PERSONNEL ON BOARD 2 DAILY COST $1947.50 REPORT BY Tollef Winslow DATA SUBMITTAL COMPLIANCE REPORT 3/7/2017 Permit to Drill 2160990 Well Name/No. TRADING BAY UNIT K-10RD2 Operator HILCORP ALASKA LLC API No. 50-733-20167-02-00 MD 13233 TVD 9730 Completion Date 11/30/2016 Completion Status 1 -OIL Current Status 1 -OIL UIC No REQUIRED INFORMATION J QI Mud GC Log ,d6 P Samples �le,\, V Directional Survey Yes v(t DATA INFORMATION 1 Types Electric or Other Logs Run: ROP DGR EWR PHASE4 ALD CTN, Formation Mudlog, LWD Combo (data taken from Logs Portion of Master Well Data Maint) Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OHI Type Med/Frmt Number Name Scale Media No Start StopReceived CH Comments ED C 27840 Digital Data 8400 13234 12/27/2016 Electronic Data Set, Filename: K-10RD2 DGR EWR ALD CTN Final.las ED C 27840 Digital Data 12/27/2016 Electronic File: K-10RD2 DGR_EWR_CTN_ALD, MD.cgm ED C 27840 Digital Data 12/27/2016 Electronic File: K-10RD2 DGR_EWR_CTN_ALD TVD.cgm ED C 27840 Digital Data 12/27/2016 Electronic File: K-10RD2 - Definitive Survey.pdf - ED C 27840 Digital Data 12/27/2016 Electronic File: K-10RD2.txt ED C 27840 Digital Data 12/27/2016 Electronic File: K-10RD2 DGR EWR CTN ALD MD.emf ED C 27840 Digital Data 12/27/2016 Electronic File: K-10RD2 DGR EWR CTN ALD } TVD.emf ED C 27840 Digital Data 12/27/2016 Electronic File: K-10RD2 DGR_EWR_CTN_ALD: MD.pdf ED C 27840 Digital Data 12/27/2016 Electronic File: K-10RD2 DGR_EWR CTN ALD TVD.pdf - ED C 27840 Digital Data 12/27/2016 Electronic File: K-10RD2 DGR EWR CTN_ALD MD.tif ED C 27840 Digital Data 12/27/2016 Electronic File: K-10RD2 DGR EWR CTN ALD - TVD.tif Log C 27840 Log Header Scans 0 0 2160990 TRADING BAY UNIT K-10RD2 LOG HEADERS ED C 27841 Digital Data 8201 13300 12/23/2016 Electronic Data Set, Filename: K10-RD2.las ' ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2.dbf ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2.mdx AOGCC Page I of 6 Tuesday, March 07, 2017 DATA SUBMITTAL COMPLIANCE REPORT 3/7/2017 Permit to Drill 2160990 Well Name/No. TRADING BAY UNIT K-10RD2 Operator HILCORP ALASKA LLC API No. 50-733-20167-02-00 MD 13233 TVD 9730 Completion Date 11/30/2016 Completion Status 1-0I1- Current Status 1-0I1- UIC No ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2 SCL.DBF ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2 SCL.MDX ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2 tvd.dbf ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2 tvd.mdx , ED C 27841 Digital Data 12/23/2016 Electronic File: k-10 rd2.hdr ED C 27841 Digital Data 12/23/2016 Electronic File: k-10 rd2r.dbf - ED C 27841 Digital Data 12/23/2016 Electronic File: k-10 rd2r.mdx ' ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #1 Oct 11, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #10 Oct 20, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #11 Oct 21, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #12 Oct 22, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #13 Oct 23, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #14 Oct 24, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #15 Oct 25, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #16 Oct 26, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #17 Oct 27, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #18 Oct 28, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #19 Oct 29, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #2 Oct 12, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #20 Oct 30, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #21 Oct 31, 2016.pdf AOGCC Page 2 of 6 Tuesday, March 07, 2017 DATA SUBMITTAL COMPLIANCE REPORT 3/7/2017 Permit to Drill 2160990 Well Name/No. TRADING BAY UNIT K-10RD2 Operator HILCORP ALASKA LLC MD 13233 TVD 9730 Completion Date 11/30/2016 Completion Status 1 -011 - -OILED ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data ED C 27841 Digital Data API No. 50-733-20167-02-00 Current Status 1-0I1- UIC No 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #22 Nov 01, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #23 Nov 02, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #24 Nov 03, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #25 Nov 04, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #26 Nov 05, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #27 Nov 06, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #28 Nov 07, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #29 Nov 08, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #3 Oct 13, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #30 Nov 09, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #31 Nov 10, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #32 Nov 11, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #33 Nov 12, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #34 Nov 13, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #35 Nov 14, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #36 Nov 15, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #4 Oct 14, 2016.pdf 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report # Oct 15, 2016.pdf AOGCC Page 3 of 6 Tuesday, March 07, 2017 DATA SUBMITTAL COMPLIANCE REPORT 3/7/2017 Permit to Drill 2160990 Well Name/No. TRADING BAY UNIT K-10RD2 Operator HILCORP ALASKA LLC API No. 50-733-20167-02-00 MD 13233 TVD 9730 Completion Date 11/30/2016 Completion Status 1 -OIL Current Status 1-0I1- UIC No ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #6 Oct 16, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #7 Oct 17, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #8 Oct 18, 2016.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: Canrig K10-RD2 Daily Report #9 Oct 19, 2016.pdf ED C 27841 Digital Data (J 12/23/2016 Electronic File: K10 RD2_Final Well Report.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2 - 5in Formation Log , P MD.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2 - 5in Formation Log TVD.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2 - Drilling Dynamics Log MD.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2 - Drilling Dynamics Log TVD.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2 - Formation Log ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2 - Formation Log - \ TVD.pdf ED C 27841 Digital Data p 1 12/23/2016 Electronic File: K-10 RD2 - Gas Ratio Log MD.pdf , ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2 - Gas Ratio Log ' TVD.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2 - LWD Combo Log MD.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2 - LWD Combo Log TVD.pdf ED C 27841 Digital Data 12/23/2016 Electronic File: K-10 RD2 - Log Tiffs.zip ED C 27841 Digital Data 12/23/2016 Electronic File: K10-RD2 - 5in Formation Log MD.tif ED C 27841 Digital Data 12/23/2016 Electronic File: K10-RD2 - 5in Formation Log ' TVD.tif ED C 27841 Digital Data 12/23/2016 Electronic File: K10-RD2 - Drilling Dynamics Log MD.tif AOGCC Page 4 of 6 Tuesday, March 07, 2017 DATA SUBMITTAL COMPLIANCE REPORT 3/7/2017 Permit to Drill 2160990 Well Name/No. TRADING BAY UNIT K-10RD2 Operator HILCORP ALASKA LLC MD 13233 ED C ED C ED C ED C ED C ED C ED C ED C ED C ED C ED C ED C ED C Log C Log C TVD 9730 Completion Date 11/30/2016 Completion Status 1-011- 27841 -OIL27841 Digital Data 27841 Digital Data 27841 Digital Data 27841 Digital Data 27841 Digital Data 27841 Digital Data 27841 Digital Data 27841 Digital Data 27841 Digital Data 27841 Digital Data 27841 Digital Data 27841 Digital Data 27841 Digital Data 27841 Log Header Scans 0 0 27841 Mud Log 2 8445 13233 Well Cores/Samples Information: Name Cuttings INFORMATION RECEIVED Interval tart Stop 8445 13233 API No. 50-733-20167-02-00 Current Status 1-0I1- UIC No 12/23/2016 Electronic File: K10-RD2 - Drilling Dynamics Log TVD.tif 12/23/2016 Electronic File: K10-RD2 - Formation Log MD.tif 12/23/2016 Electronic File: K10-RD2 - Formation Log TVD.tif 12/23/2016 Electronic File: K10-RD2 - Gas Ratio Log MD.tif 12/23/2016 Electronic File: K10-RD2 - Gas Ratio Log TVD.tif . 12/23/2016 Electronic File: K10-RD2 - LWD Combo Log - MD.tif 12/23/2016 Electronic File: K10-RD2 - LWD Combo Log - TVD.tif 12/23/2016 Electronic File: Hilcorp Alaska LLC Show Report #1 11943 to 12046.pdf 12/23/2016 Electronic File: Hilcorp Alaska LLC Show Report #1 11943 to 12046.xls 12/23/2016 Electronic File: Hilcorp Alaska LLC Show Report . #2 12050 to 12123.pdf 12/23/2016 Electronic File: Hilcorp Alaska LLC Show Report #2 12050 to 12123.xls 12/23/2016 Electronic File: Hilcorp Alaska LLC Show Report #3 12180 to 12257.pdf 12/23/2016 Electronic File: Hilcorp Alaska LLC Show Report - #3 12180 to 12257.xls 2160990 TRADING BAY UNIT K-10RD2 LOG HEADERS 2" MD Gas Ratio Log 2" MD Drilling Engineering Log 2" MD Formation Evaluation Log 5" MD Formation Evaluation Log Sent Received 11/21/2016 Sample Set Number Comments 1593 AOGCC Page 5 of 6 Tuesday, March 07, 2017 DATA SUBMITTAL COMPLIANCE REPORT 3/7/2017 Permit to Drill 2160990 Well Name/No. TRADING BAY UNIT K-10RD2 Operator HILCORP ALASKA LLC API No. 50-733-20167-02-00 MD 13233 TVD 9730 Completion Report Y Completion Date 11/30/2016 Completion Directional / Inclination Data Status 1 -OIL Current Status 1 -OIL Mud Logs, Image Files, Digital Data Y,/JK1A� UIC No Core Chips Y f A ) Y / Production Test Informatio A Mechanical Integrity Test Information NA Composite Logs, Image, Data Files — Core Photographs Y Geologic Markers/Tops � Daily Operations Summary Cuttings Samples Y NA Laboratory Analyses V7n COMPLIANCE HISTORY Completion Date: 11/30/2016 Release Date: 8/31/2016 Description Date Comments Comments: Compliance Reviewed By: Date: __ I AOGC(' Page 6 of 6 Tuesday, March 07, 2017 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1 a. Well Status: Oil ❑� � Gas ❑ SPLUG ❑ Other ❑ Abandoned ❑ Suspended ❑ 20AAC 25.105 20AAC 25.110 GINJ ❑ WINJ ❑ WAG❑ WDSPL ❑ No. of Completions: 1 1 b. Well Class: Development ❑� Exploratory ❑ Service ❑ Stratigraphic Test ❑ 2. Operator Name: Hilcorp Alaska, LLC 6. Date omp., Susp., or Aband.: 11/30/2016 14. Permit to Drill Number / Sundry: 216-099 / 316-536 ' 3. Address: 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503 7. Date Spudded: 1S 0� October>4; 2016 15. API Number: 50-733-20167-02-00, 4a. Location of Well (Governmental Section): Surface: 727' FSL, 141' FEL, Sec 17, T9N, R13W, SM, AK Top of Productive Interval: 1149' FNL, 1 100'FEL, Sec 19, T9N, R13W, SM, AK Total Depth: 2207' FNL, 2334' FEL, Sec 19, T9N, R13W, SM, AK 8. Date TD Reached: November 10, 2016 16. Well Name and Number: TBU K-10RD2 9. Ref Elevations: KB: 48-5- GL:73 BF:52 121.5 17. Field / Pool(s):McArthur River Field Hemlock Oil Pool 10. Plug Back Depth MD/TVD: 13,065' MD / 9,700' TVD 18. Property Designation: ADL 017594 / ADL 018777 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 213757 y- 2511791 Zone- 4 TPI: x- 207476 y- 2510080 Zone- 4 Total Depth: x- 206218 y- 2509053 Zone- 4 11. Total Depth MD/'TVD: 13,233' MD / 9,730' TVD 19. Land Use Permit: N/A 12. SSSV Depth MD/TVD: 370' MD / 370' TVD 20. Thickness of Permafrost MD/TVD: N/A 5. Directional or Inclination Survey: Yes 0(attached) No ❑ Submit electronic and printed information per 20 AAC 25.050 13. Water Depth, if Offshore: 73' (ft MSL) 21. Re-drill/Lateral Top Window MD/TVD: 8,445' MD / 6,196' TVD 22. Logs Obtained: ROP DGR EWR-Phase4 ALD CTN MD, DGR EWR-Phase4 ALD CTN TVD, Formation Mudlog 5in&2in MD & TVD Formation, LWD Combo Log MD & TVD, Gas Ratio Log and & TVD, Driling Dynamics Log MD & TVD, LWD Combo Log MD & TVD C_ 3//G �IVIE DEC 3 0 7.016 23. CASING, LINER AND CEMENTING RECORD WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CASING FT TOP BOTTOM TOP BOTTOM CEMENTING RECORD AMOUNT PULLED 7-5/8" 29.7# L-80 8,147' 13,190' 5,992' 9,723' 8-1/2" 61 bbls, Class G, 15.3 ppg 24. Open to production or injection? Yes ❑� No ❑ If Yes, list each interval open (MD/TVD of Top and Bottom; Perforation Size and Number): 11922'-11971' MD / 9191'-9228' TVD 11980'-11985' MD / 9235'-9239' TVD COMPLETION 11993'-11988' MD / 9245'-9249' TVD DATE 12008'-12033' MD / 9257'-9273' TVD (1 12041'-12121' MD / 9279'-9334' TVD ALL 5 SPF VERfPIE[: 12151'-12394' MD / 9350'-9487' TVD 12426-12522' MD / 9503'-9544' TVD -- 12565'-12780' MD / 9562'-9631' TVD 12854'-12954' MD / 9651'-9679' TVD 25. TUBING RECORD SIZE DEPTH SET (MD) PACKER SET (MD/TVD) 4-1/2" 8,083' 395' MD / 395' TVD 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. Was hydraulic fracturing used during completion? Yes ❑ No 0 Per 20 AAC 25.283 (i)(2) attach electronic and printed information DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production: 12/2/2016 Method of Operation (Flowing, gas lift, etc.): ESP Date of Test: 12/8/2016 Hours Tested: 24 Production for Test Period Oil -Bbl: 420 Gas -MCF: 213 Water -Bbl: 11134 Choke Size: N/A Gas -Oil Ratio: 507 Flow Tubing Press. 110 Casing Press: 100 Calculated 24 -Hour Rate —.0-.420 Oil -Bbl: Gas -MCF: 213 Water -Bbl: 11134 Oil Gravity - API (corr): 33 Form 10-407 Revised 11/705 CONTIN ED ON P GE 2 Submit ORIGINIAL on �, RBDMS LL_ I, 1 2016 28. CORE DATA Conventional C, _ks): Yes ❑ No ❑� Sidewall Cores: (es ❑ No ❑� If Yes, list formations and intervals cored (MD/TVD, From/To), and summarize lithology and presence of oil, gas or water (submit separate pages with this form, if needed). Submit detailed descriptions, core chips, photographs, and all subsequent laboratory analytical results per 20 AAC 25.071. 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Yes ❑ No If yes, list intervals and formations tested, briefly summarizing test results. Permafrost - Top N/A N/A Permafrost - Base N/A N/A Attach separate pages to this form, if needed, and submit detailed test Top of Productive Interval 11,922 9,191 information, including reports, per 20 AAC 25.071. Coal 46 9480 7041 G 11000 8430 G1 11131 8547 Coal 39 11349 8734 Coal 59 11902 9176 Hemlock 11914 9185 H1 11973 9230 H2 12007 9255 H3 12150 9352 H4 12309 9445 H5 12414 9498 West Foreland 12969 9680 Formation at total depth: lWest Foreland 31. List of Attachments: Wellbore Schematic, Daily Decompletion, Drilling and Completion Reports, Definitive Directional Surveys, Casing and Cement Form, Days vs Depth, MW vs Depth Information to be attached includes, but is not limited to: summary of daily operations, wellbore schematic, directional or inclination survey, core analysis, paleontological report, production or well test results, per 20 AAC 25.070. 32. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Cody Dinger Email: cdlnl er hilcor .com Printed Name: Cody Dinger Title: Drilling Tech Signature: Phone: 777-8389 Date: 12/30/2016 INSTRUCTIONS General: This form and the required attachments provide a complete and concise record for each well drilled in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. All laboratory analytical reports regarding samples or tests from a well must be submitted to the AOGCC, no matter when the analyses are conducted. Item 1a: Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 1 b: Well Class - Service wells: Gas Injection, Water Injection, Water -Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Item 4b: TPI (Top of Producing Interval). Item 9: The Kelly Bushing, Ground Level, and Base Flange elevations in feet above Mean Sea Level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 15: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: Report measured depth and true vertical thickness of permafrost. Provide MD and TVD for the top and base of permafrost in Box 29. Item 22: Review the reporting requirements of 20 AAC 25.071 and, pursuant to AS 31.05.030, submit all electronic data and printed logs within 90 days of completion, suspension, or abandonment, whichever occurs first. Item 23: Attached supplemental records should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Pursuant to 20 AAC 25.071, submit detailed descriptions, core chips, photographs, and all subsequent laboratory analytical results, including, but not limited to: porosity, permeability, fluid saturation, fluid composition, fluid fluorescence, vitrinite reflectance, geochemical, or paleontology. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Item 31: Pursuant to 20 AAC 25.070, attach to this form: well schematic diagram, summary of daily well operations, directional or inclination survey, and other tests as required including, but not limited to: core analysis, paleontological report, production or well test results. Form 10-407 Revised 11/2015 Submit ORIGINAL Only McArthur River Field Well: K-10RD2 SCHEMATIC API #: 50-733-20167-02 Hilcorp Alaska, LL( PTD: 216-099 Last Completed: 11/30/2016 RKB to Sea Level (MSL) = 122' KB 48.5' 24" 13-3/8" d Liner Hanger' 8,147' ri Min ID 6.670" 8-1/2" TOW ' 4 8,445' 4 Est. TOC 10,253' HK -1 HK -2 HK -3 .'� HK -4 1* HK -5 'G-- HK -6 TD = 13,233' PBTD = 13,065' Max Hole Angle = 80° CASING DETAIL JEWELRY DETAIL No SIZE WT GRADE CONN ID TOP BTM. 24" 186 X-56 Weld Surface 384' 13-3/8" 61 K-55 BTC 12.515" Surface 2,500' 13-3/8" 68 K-55 BTC 12.415" 2,500' 4,998' 9-5/8" 47 Pilo BTC 8.681" Surface 8,445' TOW 7-5/8" 29.7 L-80 Hydril511 6.875" 8,147' 13,190' 7,979' 5,885' HK -2 TUBING DETAIL Pump (x2) 45 Stg SG16000 7 4-1/2" 1 12.6 L-80 Supermax 1 3.958" Surface 8,083' HK -1 HK -2 HK -3 .'� HK -4 1* HK -5 'G-- HK -6 TD = 13,233' PBTD = 13,065' Max Hole Angle = 80° JEWELRY DETAIL No Depth MD Depth TVD ID OD Item 1 48.5' 48.5' 3.958" 13.625" FMC 13-5/8" x 4-1/2" ESP Tbg Hanger 2 370' 370' 3.813" 6.908" SSSV Superior BT(E)-5 3 395' 395' 3.930" 8.312" 9-5/8" 47# ESP Dual Packer 4 419' 419' 3.813" 5.570" X -nipple 5 7,959' 5,953' - 6.750" Discharge, Bolt -On 6 7,979' 5,885' HK -2 6.750' Pump (x2) 45 Stg SG16000 7 7,998' 5,897' 5 5.130" Seals 8 8,017' 5,907' 9,279' 5.620" (2) 562 Motors KMLST 500HP/180OV/165.5A 9 8,080 5,950 HK -3 5.620" Centralizer Anode HK -1 HK -2 HK -3 .'� HK -4 1* HK -5 'G-- HK -6 TD = 13,233' PBTD = 13,065' Max Hole Angle = 80° Updated By: CJD 12/20/16 PERFORATION DETAIL Zone Top MD Btm MD Top TVD BTM TVD FT SPF Date Status HK -1 11,922' 11,971' 9,191' 9,228' 49' 5 11/25/2016 Open HK -1 11,980' 11,985' 9,235' 9,239' 5' 5 11/25/2016 Open HK -1 11,993' 11,998' 9,245' 9,249' 5' 5 11/25/2016 Open HK -2 12,008' 12,033' 9,257' 9,273 25' 5 11/25/2016 Open HK -2 1 12,041' 12,121' 9,279' 9,334' 80' 5 11/25/2016 Open HK -3 12,151' 12,394' 9,350 9,487' 243' 5 11/25/2016 Open HK -4 12,425' 12,522' 9,503' 9,544' 97' 5 11/25/2016 Open HK -5 12,565' 12,780' 9,562' 9,631' 215' 5 11/25/2016 Open HK -6 12,854' 12,954' 9,651' 9,679' 100' 5 11/25/2016 Open Updated By: CJD 12/20/16 Hilc4. p Energy Company Composites Report Well Name: MRF K-10RD2 Field: McArthur River County/State: Cook Inlet Offshore, AK i (LAT/LONG): ovation (RKB): API #: 50-733-20167-02 Spud Date: Job Name: 1612388P K-10RD2 PreDrill Contractor AFE #: AFE $: Activillty Date Ops Summary 9/24/2016 Inventory BOP bolts and clean up same, string out hoses for vac unit use, start removal of old lightwater plumbing from HPU units (bad), RU rigs test pump, cut opening in wall of centrifugal room for plumbing to upright tanks, modify legs of staircase to doghouse Ianding.,Cont removal of lightwater plumbing in HPU units, received stairs, ladders and assorted equipment off boat, install stairs and landing on electricians shop, RU mudline to rig cellar and tie into choke manifold for circulating, Lay out KatchKan floor mats on rig floor.,Cont RU circ hoses from choke manifold to flowline, inspect and repair steam leaks, cont setting rig floor matting, run pump #2 through bleeder (water), install ring gasket in choke line connection to choke manifold, hang ladder on mechanic shop to roof top, install stair case from production landing to pits.,Run pump #2 through choke manifold for 1 hr with no issues, 60 spm -190 gpm. Shut down pump and line up on auto choke. Pump 2 would not start, found VFD fault, re -set same (twice) and ran pump at 37 spm -3000 psi -39% choke with no issues. Did have a drip from weep hole on pod #1 while under pressure. Shut down and lined up on pump #1. Ran pump 1 for 30 minutes on full open choke at 63 spm -119 gpm, with no issues.,Reduced pump rate to 13 spm, manual choke closed at 85%, 2500 psi. Ran 5 minutes and shut down same. Lined up on auto choke and prep to run #1 pump under load. Welder installed staircase from production deck to pit access landing, installed ladder from upper pipedeck to production deck and modifying handrails around those. Crew laid out cable trays to be mounted on rig module ... K-10RD2 wellhead pressures at 04:00: 24" = 20 psi, 13 3/8" = 0 psi, 9 5/8" = 300 psi, Tbg = 3 psi. 100% moved, 90% Rigged up. 9/25/2016 Troubleshoot autochoke/pump #1 issues. RU and transfer FIW into and load pits. Bled off pressure on well, RU to pressure test circ line to tree from rig, and return line from annulus to pig launcher. Welder working on handrails around new stairs/ladders.,CO low torque valve on tree, cont troubleshooting pump #1 (runs but won't pump), cont modifying handrails, install last 3 storm clamps on sub base, electrician troubleshooting VFD issues with pump #2, run pump 2 but still seeing faults at slow down or shut down, welder building brackets for cable trays. MWD and Canrig Reps on board.,Tear into pump #1 and inspect valves / seats. Replaced one bad valve spring. Assemble pump and run with no change (will not prime and pump). Remove swabs and inspect suction manifold. Checked swabs and tighten loose rod clamp. Assemble pump.,Start pump #1, caught prime immediately. Run at 60 spm -116 gpm-200+ psi. Pinch back auto choke and run for 1 hour at 60 spm -110 gpm-2400 psi. Auto choke at 42 percent closed. Saw no more than 113 degrees temp on hydraulics. Pulsation dampener start 450 psi, at 60 spm -2400 psi dampener at 2200 psi. Found leak on mudline shock hose, shut down pump.,RU and blow down mudline, break mudline connection and inspect same. Replaced bad hammer union o -ring. Ran pump under load 15 min, no leaks, no pump issues. Shut down and repeat with no issues. Shut down and prep to test circ lines to wellhead room and pig launcher. RU hose to pits for FIW.,With rig test pump on annulus line to pig launcher, low tested at 100 psi then high test at 750 psi (good), lined up test pump to circ line to tbg, tested at 250 low and 2500 high (good). SIMOPS meeting with Production crew and decision made to wait until Production changeout to circ well to FIW. Hung cable trays on rig support module, fabricated threaded flange for charge pump room to upright tanks. 9/26/2016 Top off pits, sand trap and rig water tank with FIW for well kill, cont working on steam lines while wait on Production changeout. Troubleshoot and rectify the pump #2 VFD issue. Run pump 1 and verify ready to pump on well. Break circ pumping down tubing at 4 bpm -865 psi, taking returns from annulus to pig launcher. Start FIW into pits while pumping.,Pumped a total of 60 bbls getting oil and gas returns from annulus, then started getting gas with oil returns. With 450 bbls away started seeing water along with gas and oil. With 690 bbls away started seeing majority of water, with some trace of gas and oil. Pumped a total of 910 bbls FIW at 4 to 5 bpm and shut down. FCP tubing = 1613 psi, 9 5/8" = 555 psi. Shut down and shut in to monitor well. Bled well to zero.,Tubing pressure increased from 60 to 120 psi over an hour. Annulus pressure increased from 40 psi to 120 psi over an hour.,Lined up pump 1 on tubing and pumped a total of 50 bbls at 2.3 bpm - 675 psi. First 10 bbls had water with oil returns, by 20 bbls away had nothing but water returns. With 50 bbls away shut down, FCP tubing =620 psi, 9 5/8" = 700 psi. Bled well to zero.,Tubing pressure increased from 0 to 55 psi, annulus increased from 0 to 45 psi over 30 minutes. Bled well to zero psi and RD circ line to tree top. Wellhead Rep prepped BPV and spang tool. Slowly opened swab valve and fluid percolating in tree. Shut in well, decision made to pump another tubing volume. Notified Production to prep pipeline for circ.,RU circ line to tree top, test line at 250 low, 2500 high, had to CO low torque valve due to leak, re -test circ line (good).,Pumped another 160 bbls down tubing, taking returns from annulus to pig launcher. Pumped at 4 bpm, FCP 1200 psi on tubing, 530 psi on annulus. Had majority of water returns with trace oil/gas. Shut down and bled well to zero psi and monitored for one hour. Total FIW pumped to kill well = 1120 bbls.,RD circ line to tree top, set BPV with no issues. Production reps started hardware removal from tree. Rig crew PU 2 jnts 4" DP and MU/racked back for tree removal. MU the two riser sections on upper deck. Welder working on mount brackets for hydraulic lines and building hole cover., Installed saver sub on topdrive, installed XO on tree cap, MU XO's and installed stand of DP into tree cap, MU topdrive on stand. Removed grating around wellhead. Secured greylok clamps with tuggers and removed same. Lifted tree off wellhead with topdrive (no issues). Pulled tree through deck and set in sub. Removed DP stand from tree. Hanger threads look good.,Removed elevators from topdrive, MU slings and pulled rotary table, removed same from rig floor with crane. LD mousehole. Pulled tree to rig floor with slings and removed from rig floor with crane. Remove mudline in rig cellar to allow for trolly travel. Wellhead Tech installed blanking plug in hanger, pumped SSSV open and secured same in open position. Torque up riser connections on upper deck prior to PU. 9/27/2016 Cont torque up flanges on riser assembly, while on upper deck. Remove production valves and equipment from wellhead room. Installed variable rams in single gate, staged on upper deck. Welder installed "D" rings in v -door area. Held Environmental Compliance/Spud meeting with both crews, Production Reps and Drilling Team.,Clean up greylok clamps for wellhead. Cont torque up flange bolts on riser assembly. PU riser assembly and lower into wellhead room. Install greylok clamp. Install grating around wellhead. Welder built hatch cover for riser opening in main deck. Crane removed beaver slide, bridge and bridge stand. Set trolley on sub -base in prep for NU BOP's.,RU slings on topdrive, RU winch line and sheaves to pull trolley. Stage annular on trolley, pull into cellar and hang off same. Stage double gate on trolley, pull into cellar and MU on annular. Torque up same. Cont installing lightwater piping in HPU skids. Welder installed pad eyes over centrifuge, and built assorted brackets for PVC piping and lightwater piping.,Trolley in mudcross spool (with valves installed) and MU, trolley in single gate and MU. Drained rig water tank (FIW) to production, trolley in 2' spacer spool and MU, load rig water tank with fresh water, silicone seal foamed areas of shaker room and auger rooms. Cont installing PVC vac lines. 9/28/2016 Torque last of BOP spacer spool, MU ch,ke and kill lines. Install dbl boot flange on top of hydril and —t flow box in place. Stack ended up being to high because flow box boot set down on hydril boot € ill was 4" from landing out. Pull flow box and dbl boot an A to welding shop to be modified. MU accumulator lines to BOPs. Seal up around auger building. ..emove trolly and set catwalk stand to get pad eye,measurewents. Pull catwalk stand back out and set by welding shop to install pad eyes.,lnstall 4" ball valve in 400 bbl tanks. Welders working on flow box, wire hanging posts, stairs and landings to front of sub. Install dual air boot flange back on hydril. Press up accumulator and function test BOPs f/ rig floor and remote station. Work on light water plumbing. Production tested rig gas alarms and everything tested out.,Cont HPU firewater system installation, pressure test steam coil in OBM upright with air (good), pull ISO tanks from boat and offload into upright tank on deck (360 bbls), set flow box back in rotary for flowline fabrication, install guard on winch and spool line onto winch, welder installed pad eyes on bridge stand.,With crane, installed bridge stand on sub -base, installed catwalk onto bridge stand, installed anchor bolts onto beaver slide and installed same. Serviced koomey air pumps, finished PVC vac lines, RU BOP test manifold, re -worked rig floor matting, gathered up parts for panic line, Electrician working on gaitronic units. 9/29/2016 Weld chains to secure V -door. Get measurements for flow line and flow box flow line outlet. Have welders working on same. Build 3" panic line and install same. Test light water system to 215 psi for 2 hrs. Good test! Work on sealing up cracks around rig. Cont fabricating BOP test manifold. Weld 3" dike on riser/hatchcover.,Cont modifying flowbox outlet, tighten saver sub clamp on topdrive, stage floor valves on rig floor, stage test joint components on catwalk, welders finished flow line and installed same, installed flow riser in flowbox, welder fabricated staircase for pit level landing to rig sub.,Silicone seal around rotary table and cover plate, MU dart valve, TIW, pump in sub for pre -testing BOP'S, CO grabber dies on topdrive, steel seal and paint handrails, troubleshoot vac unit (seized up), installed lightwater system sprinklers in pits and HPU skids.,Set test joint in wellhead and MU on blanking plug, flood riser and BOP stack with FIW from trip tank with no leaks, RU test manifold on rig floor, RU test hose and flood with water to purge air from lines. Prep to shell test riser and stack. Cont welding stair case to rig sub from pit level landing.,,K-10RD2 wellhead pressures at 04:00 : 24" = 27 psi, 13 3/8" = 8 psi, 9 5/8" = 50 psi 100% moved, 98% Rigged up. 9/30/2016 Shell test BOP stack to 2500 psi against annular w/ 4 1/2 test jt. Perform 250 low and 2500 psi high press on hydril. Test other BOP equip to 250 low and 3500 psi high. Had a upper ram door seal that leaked on about the fifth test. Tightened door and they tested again. Had welders working on Putting two 2" and two 3" fitting tie ins at the shaker possum belly. Also installed stairs and handrails to front of sub.,Perform accumulator test. Finish doing the rest of the tests on the 4 1/2. Pull test jt and lay do same. Test blind rams. Packing started leaking on the HCR valve. Assist welders working on assorted welding projects and rig inspections and housekeeping. RU flow show. CO vac unit.,Tie in bleeder lines from rig floor and choke manifold to plumbing on shakers, repair steam leaks, replace stem packing on HCR valve, repair switch on rig air compressor. Steel seal various handrails for paint. Prep mounting plates for cellar and shaker room gas detectors. Install rotary table beam pins. Install swedge jets in gun lines of possum belly.,RU test equipment on kill line to re -test HCR valve. Sent crane crew to Granite Point Platform to offload ISO tanks from boat and stage on deck for loading OBM. Test HCR valve at 250/3500 psi f/5 minutes each (OK), install mounting plates for gas detectors in shaker room, work on centrifuge feed pump relay, clean up choke room and paint drilling alignment valves, cont housecleaning on all levels of the rig.,,K-10RD2 wellhead pressures at 04:00 : 24" = 27 psi, 13 3/8" = 7 psi, 9 5/8" = 50 psi 100% moved, 99% Rigged up. 10/1/2016 Cont housekeeping throughout the rig, cont fabricating whipcheck clamps for 1" and 2" high pressure lines. Have meeting with the crew on what was left to be done before rig was accepted. Do a walk through w/ the crew and point out the deficiencies and issues that still needed attention. Work on training and going over the 1st part of the well plan. Finish welding up grate over auger.,Put pad eyes and a turn buckle on the flow line by the auger. Remove old chains that were in the walkways. Work on remote controls for choke. Found plug that came undone and got gage calibrated to. Had fire drill at 15:30. Every mustered in galley and then went to there brucker. Had a MWD hand that did not respond because he thought they were testing alarms. All other personal responded.,Work on sealing up the rig floor better around the derrick legs. RU vacuum degasser vent line, reconfigure rig floor matting, fill possum belly with water and test airboot plug, service hopper air actuated valve, repair centrifuge feed pump relay, install mounting plate in cellar for LEL gas detector, add oil to koomey tank, welder finished fabricating 2" whipcheck brackets.,Cont sealing rig floor and derrick legs, perform derrick inspection, install 2" clamps on hydraulic lines, gathered up 6 x 8 150 flanges and valve for centrifugal room, drill mount holes on shaker dumps for pit liner, welders fabricating mounting brackets for mudline in upper and lower cellars. 10/2/2016 Install hydraulic elevators on topdrive, PU 4 1/2" test joint, RU and set up for first test against upper rams. Perform pre test to ensure we are ready for the state man. Work on welding projects and housekeeping while we were waiting for his arrival,State man [Jeff Jones] arrived on platform at 09:30. Went through orientation and did walk through on rig. Started testing BOP w/ 4 1/2 test jt at 10:00. Test all BOP equip except for the hydril to 250 low and 3500 psi high. Test all gas alarms w/ production electrician. Perform accumulator test and recovery time was great [149 sec] but two of the air pumps wouldn't pump. Mech and TP worked on pumps.,Back out of blanking sub and PU to spacer jt. Lay do 4 1/2 test jt and PU 3 1/2 test jt. Had issues getting stabbed back onto blanking sub. Finally got stabbed back on. RU and tested hydril on 3 1/2. Had to bleed pressure off twice and and tighten fittings on the test jt. Got test on the Hydril 250 low and 2500 psi high. Test upper and lower rams to 250 and 3500 psi. Test all the PVTs. Test manual and remote choke.,Remote choke was pressured up to 1000 psi and with pump down it bleed back to 0 psi within 3 min. Inspector wanted to see fire rating for kill and choke lines. Found cert for kill line hose, nothing for choke hose. Made arrangements to get choke hose from Monopod Platform along with unibolt flanges. Made arrangements to get DSA, ring gaskets and unibolt flange to heliport from warehouse.,Troubleshoot auto choke. Stem face had 4 small chips out of it, replaced stem piece, assembled and attempted to retest with same results, pressure dropping to 0 psi quick. Received choke hose from boat and other hardware from chopper. RD test equipment and test joint. Spotted Pollard e - line unit on upper pipe deck.,Shut in and drained Kuukpik choke hose, removed same, NU unibolt flanges to choke manifold and HCR valve, MU Hilcorp choke hose. Flood with water. Prep deck and rig to PU 4" DP and rack back. Test ran centrifuge and feed pump (ok). Attempt to test choke line several times, will not hold 3500 psi. Pump through choke line and manifold with fill up pump to eliminate any air. Attempt re -test with no luck. Strap 10 joints in,"V" door and start to MU stands in mousehole. Welder making cut in suction line in centrifugal room, to install flanges and valve ... K-10RD2 wellhead pressures at 04:00 : 24" = 28 psi, 13 3/8" = 8 psi, 9 5/8" = 50 psi 100% moved, 99.5% Rigged up. 10/3/2016 Cont to PU rack back 4" DP, Had a issue with the blocks dropping about 5' for no apparent reason. Driller shut down and notified the TP. Inspections were done and techs were contacted to see if they could tell if there were any issues. No issues were found. Worked on welding projects and testing 2" choke hose. Sent cert for 2" choke hose and test chart to Jeff Jones at AGOCC. Move BOP remote away f/ heliport.,Work block falling issues and keeping welders busy. Weld 6" flanges in centrifugal suction for isolating when we bring on OBM. Paint braces for blow down line. decision was made to PU DP and stand it back in the derrick with the driller that has experience running this rig. PU and stand back DP.,Cont PU rack back 4" DP in derrick. Had to pull mousehole and retrieve broken buffer spring from bottom of mousehole. Welder building whipcheck clamps for choke line. Received 3 ISO tanks from boat, RU trash pump and hoses and offload 2 1/2 ISO tanks OBM into 2nd upright. Received rig mat and placed on upper deck for dock space. Replaced hydraulic hose on tong line ram.,Installed light over auger deck, backside landing. Ran centrifuge and flushed with some FIW. Unit would not shutdown. Electrician used breaker to shut down and found conveyor screw turning backwards. Electrician rectifying that. Install 4" hoses on upright tanks for suction line to centrifugal room. Paint handrails around support module. Housekeeping. Function tested vac degasser unit.,,K-10RD2 wellhead pressures at 04:00 : 24" = 28 psi, 13 3/8" = 8 psi, 9 5/8" = 50 psi 100% moved, 99.5% Rigged up. 10/4/2016 Cont servicing centrifuge and vac degasser in pits. Working on plumbing OBM hoses to tanks and starting to plumb base oil Iines.,Had driller come in for training on chopper at 8:30. Started training new driller on rig running operations. Started PU DP and standing it back in the derrick. Got all 47 stds racked back.,Work on plumbing for hopper jet. Service rig. Work on monthly inspections. Go through centrifuge issues with SWACO tech. Offload work boat. Continue picking up drill pipe.,Continue picking up and standing back drill pipe. Rack back a total of 118 stands. Install steam heater in charge pump room. Work on plumbing base oil Iines.,K-10RD2 wellhead pressures at 04:00: 24" = 28 psi, 13 3/8" = 8 psi, 9 5/8" = 52 psi 100% moved, 99.5% Rigged up. 10/5/2016 PU 4" XT 39 DP and stand it back in the ',�rrick. We now have 142 stds in the derrick. About 9,000' of r)P.,Service rig, Do a derrick inspection, Secure the V -door post . Replace derrick and drwks came ble. Adjust pressure on MU tong line to make it more cc 3ble.,Pull super choke apart and trouble shoot. Found out that main sleeve wasn't closing all thy, way. Replaced it with the old one. Tested it to 1000 psi for min on a chart and it lost 70 psi. Good test for a choke. Send chart and explanation into AOGCC. Also left messages. Work on finishing up acceptance sheet. At 1600 hrs we got the ok from Jim Regg to proceed w/ well work.,Get non -produced form approved and get equip ready to pump down tbg taking returns to production pipeline. Held PJSM w/ production and rig crew.,Circulate 805 bbls FIW to production header at 3 BPM/850 psi. Annulus averaged 550 psi while circulating due to bucking pipeline psi. Shut down and bleed tubing and annulus to 0 psi. Monitor well 10 minutes (static).,Pull BPV. Fill hole and establish loss rate. Static.,Rig up landing joint and Pollard e-Iine.,Pollard run #1 3.84 GR to SSSV at 261' WLM without issue. Run #2 with hold -open sleeve and set same in SSSV. C/O elevators. Pull hanger off seat at 190K. Had to work +- 8 times to pull free. Pull up to 172K (6.4') and set slips.,Pollard run #3: 2.75 jet cutter. Correlate on depth at 11,884' and cut tbg. Seen good indication of cut. POH with a -line. Well is still static.,K-10RD2 wellhead pressures at 04:00 : 24" = 28 psi, 13 3/8" = 8 psi, 9 5/8" = 0 psi 100% moved, 100% Rigged up. 10/6/2016 Break do and lay do landing jt. Lay do hanger on top of 1 st jt of 4 1/2 tbg. Tbg is scaled up bad. Pull out a total of 5 jts with the hole swabbing, filling the tbg with a line off the trip tank. Scale getting worse and tbg started flowing over.,MU floor valve assem and screw in TD. Start circ at 2 BPM and work it up to 5 BPM [107 spm, 343 psi] while reciprocating the pipe 30'. Getting a lot of scale back across the shakers. Shut down and monitor well. Well static.,Pull two more jts and LD SSSV. Continue POH laying do tbg. Started getting less scale after SSSV and got a lot better after laying down about 380' of tbg.,Continue POOH laying down completion assembly to +-9100'.,POOH laying down completion assembly 9100' to 5300'.,K-10RD2 wellhead pressures at 04:00: 24" = 28 psi, 13 3/8" = 8 psi, 9 5/8" = 0 psi 10/7/2016 POOH laying down 4 1/2 completion string from 5300' to 3440". Break out 4 1/2 X 3 1/2 XO and RU 3 1/2 tbg tools. The last fewjts of 4 1/2 tbg were 150 micro R/hr the rest of the 4 1/2 were between 50 and 80 micto r/hr.,Continue POH laying down 3 1/2 tbg. There were no pups on any of the GLM which made them time consuming to handle. Save 30 jts off to one side for running as a cmt stinger. Cut jt was 11.6,Clean and LD Weatherford tongs, slips, and elevators., Clear floor and clean hand rails and walkways from rig floor to camp.,Change out elevators. Install wear bushing.,P/U M/U clean out BHA: bit, 7" casing scraper, 2 boot baskets, bit sub, XO = 17.25,RIH with clean out assembly with stands out of derrick to +-3330'. Having to torque each connection on the trip in.,P/U 8 1/2" string mill and cross -overs. Break circulation at 4.5 BPM/220 psi. Continue RIH with stands out of derrick and torqueing each connection.,K-10RD2 wellhead pressures at 04:00 : 24" = 30 psi, 13 3/8" = 8 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. 10/8/2016 RIH w/ 7"csg scraper and 8 1/2 string mill. Running DP out of the derrick, torqueing every connection to just above liner at 8480'. Break circ and check pressure before entering liner. #1 pump, 100 spm, 400 psi.,Continue RIH out of derrick to 8979'. Didn't even see the liner top at 8532'. RU to PU 4" DP. Had safety meeting with crew and Hilcorp safety man Mark Tornai before crew went to work.,Continue RIH PU 4' DP. Had safety meeting with 2nd crew and Hilcorp safety man right after the got off work. Tag up at 11870'. MU topdrive and fill pipe.,Circ working pump rate up to 5.5 BPM , 750 psi w/ #1 pump. Minimal paraffin/residue over the shakers at bottoms up.,Change out elevators. Test ESD. Good test.,POOH to TOL at 8532'.,Circulate at 9.3 BPM/1425 psi with minimal residue over shakers.,POOH from 8532' to 4840'.,K-10RD2 wellhead pressures at 04:00 : 24" = 30 psi, 13 3/8" = 8 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. 10/9/2016 POOH from 4840' to 5 1/2 taper mill. Lay do mill and finish POH. Lay do bit, csg scraper, and boot baskets. Recovered a coffee can of parifin from boot baskets.,RU pollard E -line and RIH w/ a 7" retainer. Set retainer at 11,800'. PU 50' off retainer and go back and tag. POH and RD E-Iine.,Rig up Weatherford tongs and equipment.,P/U cement stinger, XO's and 25 joints of 3 1/2" tubing = 779.47.,Rig down Weatherford. Change elevators for running drill pipe.,RIH with cement stinger assembly to 11,745'. P/U 160 K, S/O 76 K.,Circulate down at 1 BPM and engage cement retainer at 11,762'. Recheck pipe on location. Pressure up to 3000 psi. Unable to inject. Bleed pressure off.,Stand back one stand. Make up pump in sub, TIW valve and pup joint. Rig up Schlumberger cementers.,K- 1 ORD2 wellhead pressures at 04:00 : 24" = 33 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. 10/10/2016 Rig up Schlumberger cementers. Hold PJSM. Pump 5 bbls water ahead. Test lines to 3500 psi. Batch up, pump 18.6 bbls of class g 15.8 ppg cmt, and displace with 112.5 bbls FIW. Held 250 to 300 psi back pressure w/ choke. Shut down and bleed press off back side, RD cmt head, pull 12 stds. drop balls and circ a complete circ. Got back a trace of cmt on bottoms up.,POH w/ cmt stinger stand back 4" DP in derrick.,R/U Weatherford. POOH laying down 3 1/2" tubing and cement stinger. Had a total of 25 joints of tubing.,Rig down Weatherford equipment. Hole is static.,Purge choke manifold. Test 7" x 9 5/8" casing and cement plug at 2700 psi on chart for 30 minutes. Pressured up to 2720 psi and bled down to 2670 psi in 30 minutes. 6.7 bbls to pressure up. 13 3/8" annulus went from 8 to 10 psi during test. Good test. Bleed down.,Rig up Pollard a -line. RIH with bridge plug. Correlate on depth. Set bridge plug at 8453' WLM. Pull 1500 lbs over to release setting tool. Retag to confirm setting depth. POOH. Shear screw looked good. Rig down Pollard e-Iine.,Slip and cut drill line. Service rig. Continue cleaning pits.,K-10RD2 wellhead pressures at 04:00 : 24" = 30 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. 10/11/2016 Finish slip and cutting drilling line w/ new crews. Set wt indicator.,Service rig.,Prep for picking up BHA. Clean shakers and shaker pits so we can do a couple welding projects. PU 1 jt of 4' HWDP and PU whip stock. mill assy and std back.,Pull wear ring, chase and seal rig floor leaks while continue and assisting with weld projects at shakers also assist crane crew w/ boat.,Continue P/up BHA #3 BOT window master G2 whip stock w/ torque master bottom trip anchor assy. Drift and pick up 21 joints of HWDP.,Test tools at 300 GPM/730 psi. Good test.,RIH with whip stock assembly with pipe out of derrick. SLM while running.,Hang off string with test plug at 4283'. Prepare to test BOPE.,K-10RD2 wellhead pressures at 04:00 : 24" = 24 psi, 13 3/8" = 8 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. 10/12/2016 Hang off string. M/U test joint.,Purge air and shell test w/ top rams 250L and 3500 high good test.,State man Mr. Bob Noble on location and ok to proceed with witness test.,Test BOPE on 4" test jt as per regulations 250L and 3500 high w/ annular high at 2500 psi w/ one F/P annular high test function annular few times and re -test (ok) and one koomey air pump having blow by but still had good numbers on draw do test (Mech went thru all three air pumps clean them and chg bad "O" ring on pump w/ blow by),R/dn test equipment. Assist Mr. Clint Chantey on finish up of prep work of 9-5/8" pack -off LDS (have (2) LDS that we are unable to back out). Remove test plug and lay down test joint.,Continue RIH w/ BHA #3 as per BOT hand from 4240' to 8337'., Establish parameters: 125 k P/U, 68 k S/O. 5.5 BPM/780 psi. Orient to 47 L. Wash down and set whip stock at 8466' . Milling parameters with no pump: @ 20, 50 and 80 RPM = 13 K torque Milling parameters while pumping at 220 GPM/800 psi: @ 20, 50 and 80 RPM = 13 K torque.,Lay down single DP. Blow down lines. Secure well. Welder finishing \� projects in shaker area, R/U lines to production and crew working on final foam sealing of areas before changing over to OBM.,K-10RD2 wellhead pressures at 04:00: 24" = 24 psi, 13 3/8" = 8 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. 10/13/2016 Continue finish weld projects and sealing cracks and gaps and prep for OBM chg over.,PJSM and chg over wellbore t/ OBM w/ one MP do hole w/ OBM @ 3-5 bpm and one MP w/ FIW to pipeline @ 3-5 bpm with 25 bbl spacer back 12 bbl early from calculated.,R/D clean pumping lines and clean pits. Prepare for OBM in pits. Pull blind flange out of MP suction line. Fill pits with OBM.,Obtain SPR's: #1 15 SPM/250 psi, 30 SPM/370 psi. #2 15 SPM/260 psi, 30 SPM/370 psi. �. Parameters: 110 P/O, 73 S/O, 89 K rot wt at 80 RPM/8.5 K torque. 350 GPM/2460 psi MW 8.8 ppg.,Milling window 8443' to 8446' with previous parameters. Actual top of window will be 8445' and BOW will be 8462'.,K- I ORD2 wellhead pressures at 04:00: 24" = 32 psi, 13 3/8" = 8 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. 10/14/2016 Mill window from 8446' to 8458' at vario— oarameters as per BOT hand w/ 7-14k torque and full stall- Continue Mill window f/ 8458't/ 8462'@ 370 gpm @ 2350 psi @ 90 rpm @ 7-14k torque an stalls and using various parameters. Recovered 312# 1 . Also pumped around 25 bbl walnut sweep @ 20 ppb @ 8458'w/ no change.,Circ btm/up while bu Laing dry job.,Monitor well (static). Pump dry job.,Service rig, epair TDS torque sensor and up max torque f/ 17.5k U 20k set torque. Chase TDS leak (gear box).,POOH with window milling assembly. Stand back HWDP.,Work BHA. Mill face 50% worn and 1/4" out of gauge. Upper and lower watermelon mills still in gauge. C/O for new 8 1/2" mill. M/U BHA.,RIH with window milling assembly BHA #4 to 1200'.,K-10RD2 wellhead pressures at 04:00 : 24" = 32 psi, 13 3/8" = 8 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. ,Daily metal recovered: 342 lbs Total: 342 lbs 10/15/2016 RIH with window milling assembly from 1200' to 3317'.,Slip insert came out of slip body and fell down hole. Drain stack but did not locate insert. Consult with engineer about options.,POOH slowly from 3317' to +-800' without over pulls. Had some over pulls from 800' to tubing spool with upper watermelon mill. BHA hanging up with 20K over pulls at this point.,Attempt to fish slip insert off top of upper watermelon mill with magnet on T -bar without success. Work mills past tubing spool using various ideas by pumping and slight rotation, slacking off and picking up until finally able to pull to rig floor. Upper and lower mills were chipped and worn. Starter mill was 1/8" under gauge with broken cutters. No recovery of slip insert.,Consult with engineer. Lay down window mill BHA. Mobilize back-up starter mill, Pollard slick line unit (from Monopod) and personnel to fish with magnets. Organize and clean rig floor while waiting on equipment and personnel. Service equipment.,R/U pollard slick line unit. Run #1: 4.5" magnet with 6 1/2" bow spring centralizer. Unable to pass 51'. Run #2: 3.75 magnet with 6 1/2" centralizer. Unable to pass 51'. Run #3: 2.25 LIB down to 900' without issue. Run #4: 2.25 magnet with 6 1/2" centralizer to 8466' SLM. Minimal shavings recovery. Run #5: 8.1 junk basket to 900'. Recovered sludge and minimal metal shavings.,K-10RD2 wellhead pressures at 04:00 : 24" = 30 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. ,Daily metal recovered: 5 lbs Total: 347 lbs 10/16/2016 Pollard slick line run #6 w/ 9-5/8" junk bsk w/ 8.1" gauge btm U 8400' wlm w/ no set dn. Pooh w/ some metal shavings no slip die junk. r/dn slick line clean rig floor.,Rih w/ Bha #5 wall new window milling mills and tandem junk bsk a stand up from mills.,Service rig chg/out leaking man rider fittings, chk dwk mtr bolts, Tie up TD power cable service loop chk torque on TDS and confirm 20k setting inspect tds gear box leak confirm gear box vents are open chg/out adsorbents. Attempt to r/up double line on m/up tongs.,Continue rih f/ 683' t/ 2500'.,3.6 bbls to fill pipe brk circ and circ and warm mud @ 370 gpm @ 1000 psi pump 144 bbls total.,Continue stage in hole f/ 2500' to 8435'. Fill pipe and warmed mud at 5000' and 7300'., Establish parameters: 110 k P/U, 73 K S/O, RT wt 85 K, 9 -15 K / torque, 9.1 BPM/1750 psi.,Mill window as per Baker rep. to 8462'. Work through window with and without pump and rotation. Drill 20' of new hole to 8482'.,Circulate and condition mud at 10.1 BPM/2100 psi until 8.7+ ppg in and out. Had: 40% cement, 10% coal, 40% carbonaceous sandstone, 5% sand and 5% metal.,Pull 1 stand. Perform FIT to 12.5 opq EMW. Bled back 3.1 bbls. Good test. No change on 13 3/8" annulus while testing.,Pump dry job. POOH with window i� milling assembly.,K-10RD2 wellhead pressures at 04:00 : 24" = 35 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 19 lbs Total: 366 lbs Assist production w/ injection test of K-06 Hilcorp Energy Company Composite Report Well Name: MRF K-10RD2 Field: McArthur River County/State: Cook Inlet Offshore, AK i (LAT/LONG): evation (RKB): API #: Spud Date: Job Name: 1612388D K-10RD2 Drilling Contractor Kuukpik 5 AFE #: AFE $: Activity Date Ops Summary 10/17/2016 Continue POOH w/ bha #5 f/ 3204't/ bha @ 683'.;Work bha I/dn and clean full junk bsks recovered just metal shavings no slip die junk. Continue I/dn chk gauge of mills top mill still in gauge @ 8.5".;Clean and clear rig floor and transfer OBM f/ ISO tanks to/ 400 bbl upright tank and monitor well static prep to p/up drilling first drilling bha.;P/up bha #6.;Download tools.;Continue P/U BHA #6 and shallow hole test same at 400 gpm @ 1200 psi.;RIH from 647' to 8399' filling pipe every 3000'. Swap over to rig power only.;Establish parameters: P/U 106 K, S/O 74 K, 350 GPM/1850 psi. Repair stroke counter on MP #1 and charge pulsation dampener to 750 psi. Work through MP noise chatter issues by syncing pumps.;Orient to 60 L and work through window without issue to 8482'.; Directional drill 8482' to 8511'.;Work string while repairing #2 MP (stuck valve guide). Charge pulsation dampener to 750 psi.; Directional drill 8511' to 8522'.;K-tORD2 wellhead pressures at 04:00: 24" = 36 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 366 lbs Assist production w/ injection test 10/18/2016 Directional drill 8-1/2" hole in rotary mode f/ 8522' to 8585' @ 50 rpm 9-10K torque (looks like we are chasing old well bore).;Work pipe and trough to build ledge @ 140L and go thru # 2 MP, still did not find any thing, swap mud pump suctions to other pit and quit mix mud product.;Time drill @ 140L @ 12 fph 8585't/8600' in an attempt to get away from old well bore @ 375 gpm @2100 psi.;Cont time drilling from 8600' to 8638', sliding wob .5 to 1 K, 439 gpm-2500 psi, 30 to 100 psi diff, 4 to 12 ft/hr ROP, MW 8.8/vis 72, BGG 10 units. Went through #2 pump again and found no issues.;MWD seeing a large amount of vibration in tools while sliding/trenching. Having to shut down pumps and work pipe numerous times trying to get sliding ahead (psi increase to point of stalling).;Tightened bull wheel belts on #2 pump with no change in pump psi fluctuation.;Cont time drilling/sliding from 8638' to 8646', rotating last 6' of stand down. Sliding wob .5 to 1 K, 439 gpm-2500 psi, 30 to 100 psi diff, 4 to 12 f 1hr ROP, rotating wob 12K, 427 gpm-2648 psi, 80;RPM-10K ft/lbs on bott torque, 7 to 14 fill ROP. Slid at 140 deg left, still having trouble with motor stalling. Survey at 8600' shows Inc of 44.70 deg (1.60 deg drop in Inc from old wellbore).;Attempted to make connection and could not break out topdrive, grabber dies shot. Changed one set of dies and broke topdrive out, saver sub threads in bad shape.;Pull up hole on elevators from 8646' to 8394' (4 stands). Saw 10K overpull as upper stab came through window, which dropped right off, no other issues with BHA. Stab floor valve.;CO saver sub and replace hydraulic hose on elevators.;TIH from 8394' to 8615' checking box ends for thread damage.;K-tORD2 wellhead pressures at 04:00: 24" = 36 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 366 lbs 10/19/2016 Replaced one joint 4" DP with bad tool face. MU topdrive and orient/pump up survey Slide drill 8-1/2" hole f/ 8646't/ 8653'.;Trough hole w/ one mud pump @ 140L While going through #2 MP.;Slide f/ 8653't/ 8660' @ 430 gpm @ 2450 psi up/dn 106/75k.;Drill f/ 8660' U 8678' @ 440 gpm @ 2750 psi @ 80 rpm w/ 13.4 free torque 9-12k on btm.;Slide drill f/ 8678'8696', sliding wob 12-13K, 441 gpm-2800 psi, 240 psi diff, 3 to 10 ft/hr ROP, BGG increased from 15 to 32 units after drilling into coal at 8690'. RU to test choke manifold.;CBU 1 time at 455 gpm-2781 psi, 50 rpm -9500 ft/lbs off bott torque, BGG increased from 33 units to 61 units then dropped off. Blew OBM out of choke manifold and flooded with water.;Up wt 94K, dwn wt 82K, rot wt 90K while pumping. Obtained survey and checked for flow (static). Pumped dry job.;POOH 20 stands on elevators from 8696', on trip tank, calc hole fill 7.4 bbls, actual hole fill 8.06 bbls. Had no issue pulling BHA through window. Shell test choke manifold 250/3500 psi.;Pulled 25 more stands with no hole fill, to drop fluid level to just below wellhead. Stopped at 5814'.;MU TIW and dart valve on stump and torque same, MU those on pump in sub and torque. LD assembly. Swapped rig to platform power. MU XO's test plug, joint and pup on string. Open annulus and;SO landing test plug in wellhead. LD 5' pup, MU TIW/daNpump in sub assembly. RU 2" hose to FIW source and flood stack. Start tear down of pump #2. Witness of BOP test waived by AOGCC Rep Jim Regg.;Test BOPE at 250 low/3500 high f/5min each. CO lead tong ram while testing. Found discharge seat on pump #2, pod #1 was washed bad. Notified boat to stop by and drop off parts connex.;K-I ORD2 wellhead pressures at 04:00 : 24" = 36 psi, 13 3/8" = 12 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 19.5 lbs Total: 410 lbs 10/20/2016 Cont testing BOPE at 250/3500 (250/2500 on annular). Had to pull test plug and replace seal due to leaking by. had (2) F/P one on high test of annular functioned few times re -tested (ok);and one on high test of Lower IBOP bleed air and re -test (ok) pull test plug off seat and drain stack of water and capture same in cuttings box. Pull and I/dn test plug and r/dn test equipment.;Continue remove wash out #1 pod of #2 MP while testing bope.;Fill stack w/ obm and put well on trip tank , continue pooh on even std and chk dp threads to 156'. CO elevator inserts, MU lift sub, pull and rack back NMDC. LD UBHO sub.;Plug in and download MWD data, clear catwalk to LD BHA, cont re -assemble pump #2.;Cont POOH LD smart tools. Drain motor and break off bit. Bit graded a 2-8. Vac'd out all LD components prior to crane removing from catwalk. Calc hole fill f/trip 38 bbls, actual 49 bbls, over 11 bbls;Clean and clear rig floor, staged BHA components for PU. Flooded #2 pump with charge pump, no leaks, prep to run pump through bleeder. Monitored well for one hour (static).;K-10RD2 wellhead pressures at 04:00: 24" = 36 psi, 13 3/8" _ 12 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 410 lbs 10/21/2016 PU and mousehole new mud motor, held PJSM with rig crew and DD, MU 7" motor w/1.5 deg bend and HDBS 8.5" MM75DC PDC bit. MU stab and float sub, MU DM collar, scribe motor/DM collar, RFO 95.17 deg,;MU DGR and EWR collars, MU inline stab, MU PWD, HUM and TM collars.;RIH w/ HWDP out of derrick.;Shallow hole test tools (ok), have 300 psi increase in pressure from last shallow hole test, rih two stds dp U 771'.;PJSM, hang blocks, r/up cut slip 100' drig Iine.;Rih f/ 771' filling pipe at 3166'. Cont TIH, to 5562' and shut down due to lack of displacement at 5314' (ran 5 stands with no displacement to 5562'). TIH at 60 to 75 ft/min with hole fill on.; With bit at 5562', monitored well on trip tank for 15 min. Initially lost .38 bbls then had no losses. Shut down hole fill and monitored for 10 min, hole static. 3.36 bbls lost at this point.;Cont ease in hole at 25 to 30 ft/min getting slight displacement from 5562' to 6321'. MU topdrive and ease into pump to fill pipe. Took 2 bbls to catch pressure and get returns. Shut down pump.;From 6006' to 6321' got much better displacement, average 1.9 bbls per 5 stands (appears pipe is filling as we TIH).;Serviced topdrive and staged Calcium Carbonate at mud mix area in case need to build LCM pill. CO fuel filters on HPU motors.;Cont to ease in hole at 25-30 ft/min from 6321' to 8394' getting average of 2.3 bbls per 5 stands, TIH at 25-30 ft/min. 5 bbls over calculated displacement from 771' to 8394'. Calibrate block height.;MU topdrive at 8394' and filled pipe. Took 6 bbls to fill, catch pressure and see returns at flow line. Pumped at 298 gpm- 2038 psi and oriented toolface at 57L, 3.4 bbl loss then holding steady.;Up wt 108K, dwn wt 75K, BGG at 10 units, getting no losses at 298 gpm. Down pump, SO and exited window with no issues, to 8532'. MU topdrive and break circ. Place 15 bbls OBM in pill pit .;CBU 1 time at 365 gpm-2700 psi, 22 rpm -7,000 ft/lbs, work pipe with BHA outside window, to warm up OBM and check for losses. No losses. No issues on shakers. Had max of 29 units at bott up.;Obtained SPR's with both pumps at 8532'.;Wash and ream down from 8532' to 8696', slowly, 396 gpm-3000 psi, 40 rpm -8600 f /ibs off bott torque, no issues, no sign of fill.;Drill 8 1/2" hole from 8696' to 8713', rot wob 10K, 375 gpm-3091 psi, 76 rpm -11,500 fUlbs on bott torque, +/- 100 ft/hr ROP, MW 8.9 ppg/vis 115, ECD at 9.2 ppg, BGG 23 units.;Sliding wob 17K, 376 gpm-2826 psi, 35 psi diff, 25 ft/hr ROP.;K-10RD2 wellhead pressures at 05:00: 24" = 36 psi, 13 3/8" = 12 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 410 lbs 10/22/2016 Cont directional drilling 8 1/2" hole ..-.n 8713'to 8887', sliding as needed to maintain WP05 rotating top of.,.. and sliding btm 20' of each std sheering mud screening up still getting hot survey.;Up/Dn/Rot 110/ 75/89k w/ off btm tq @ 8-9k on btm tq @ 10-11.5k @ 80 rpm w/ 374 gpm and 2757 psi.;Cont directional drilling 8 1/2" hole from 8887' to 8961' , sliding as needed to maintain WP05 rotating top of std and sliding btm 20' of each std still getting hot surveys.;P/up t/ 8962' and shoot 4 quadrant check shot survey Ok'ed to drill ahead, had 133 units gas from MKR-4 coal. At 8792' got clean survey.;Cont directional drilling 8 1/2" hole from 8961' to 9045', sliding as needed to maintain WP05 rotating top of std and sliding btm 20' of each std.;Cont directional drilling 8 1/2" hole from 9045' to 9281'. Sliding wob 9K, 379 gpm-2815 psi, 243 psi diff, 33 ft/hr ROP. Rotating wob 11 K, 363 gpm-2888 psi, 80 rpm-13,000 ft/Ibs on bott torque.;Pumped a 20 bbl hi-vis (244 vis) sweep at 9218' as we started to rotate stand down.;Cont directional drilling 8 1/2" hole from 9281' to 9466', small amount of nutplug on shakers, never did see indication of hi-vis sweep back to surface. No increase in cuttings at calculated strokes.;At 9466' pod #1 on #2 leaking, racked back one stand.;CBU with one pump at 300 gpm-1971 psi, 25 rpm-9,000 ft/Ibs off bott torque, BGG 37 units, ECD's at 9.4 ppg. Swab ok, checking liner gasket on pump #2.;Last survey at 9361' md, 6870' tvd, 23.74 Inc, 255.93 Azi, puts us 8.27' high and 19.68' right of the Iine.;K-1 ORD2 wellhead pressures at 05:00: 24" = 37 psi, 13 3/8" = 12 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 14 lbs Total: 424 lbs 10/23/2016 Cont CBU at 9466' with one pump, 300 gpm-1958 psi, while repairing leak on pump #2, pod #1. 25 rpm-9,000 ft/lbs off bott torque, BGG 31 units, ECD's 9.4 ppg.; Pull one std and monitor well (static) short trip OOH f/ 9466't/ 8902'w/ no real issue to above MRK-4 coal had three 25 k over pull wipe thru X2 all in slides 8947', 8902'& 8488'.;Udn (1) bad jt w/ rough threads in box. Service rig rih w/ no issues and ream last stand to btm and stage up rate w/ no fill.;Cont directional drilling 8 1/2" hole from 9466' to 9832', sliding as needed to maintain WP05. (d 370 gpm @ 3200 psi @ 80 rpm.; Cont directional drilling 8 1/2" hole from 9832' to 10,006'. Sliding wob 1 OK, 372 gpm-3083 psi, 169 psi diff, 25 ft/hr ROP. Rotating wob 13K, 342 gpm-3009 psi, 80 rpm-15,000 ft/Ibs on bott torque, 75;ft/hr ROP. MW 9.1 ppg/vis 64, ECD's at 9.4. BGG 13 units. Had a spike for 876 units after drilling through coal at 9938'. Motor output of 5.2 deg/100' while sliding.; 1.41 deg/100' drop and a right hand walk of 1.02 deg/100' in rotation.;Attempted to build 25 bbl sweep but pill pit not holding fluid. Lost into active system numerous times. Also at 10,006' pump #2 pod #1 liner is loose. Shut down pump 2 for repair, rack back one stand.;Rotate/reciprocate string 30 rpm-9000 ft/lbs off bott torque, on one pump at 217 gpm-1230 psi while re-building hi-vis sweep and repairing pump #2. Test run pump 2 (ok);Pump 15 bbls hi-vis sweep (400+ vis) and cont to circ around at 346 gpm-2906 psi, 70 rpm-10,500 fNbs off bott torque. Had a good 30% increase in cuttings to surface. Circ shakers clean.;Obtained SPR's, made connection, wash down and resumed drilling 8 1/2" hole from 10,006' to 10,038', sliding wob 22K, 361 gpm-2764 psi, 126 psi diff, 33 ft/hr ROP, MW 9.1/vis64, ECD's at 9.3, BGG 10;units. Just after making connection at 10,038' found topdrive washpipe is leaking. Shut down pumps.;Pulled up hole 3 stands from 10038' to 9814' (between two coals to CO washpipe.) Up wt 142K. 10/24/2016 Cont CO washpipe on topdrive while sitting at 9814' (between two coals).;Service rig and topddve.;TIH back to bottom with no issues from 9814' to 10,038'.;Drill from 10,038' to 10,413'. Rot wob 12K, 360 gpm-3080 psi, 80 rpm-14,500 ft/lbs on bott torque, obtained SPR's at 10,413'. Racked back one stand.;Assembly averaged 0.5 deg/100' drop with no discernible walk. During slides, motor output averaged 5 deg/100'.;CBU x 2 at 360 gpm-3000 psi, had a max of 97 units gas at bott up-then down to 20 units. Circulated until dean on shakers. Flow check = static.;Pulled 15 stands from 10,287' to 9344'. Up wt with no pumps 149K, dwn wt 85K. Had no issues pulling. Calculated hole fill = 5.7 bbls, actual = 8.14 bbls, over = 2.44 bbls.;Service rig and topdrive. Monitored well 30 min = slight seepage.;TIH 15 stands, filled pipe then washed stand 16 down to bottom at 10,413' with no indication of fill. Made connection.; Pumped 22 bbls hi-vis sweep then resumed drilling 8 1/2" hole in rotation, from 10,413' to 10,511'. Rotating wob 11K, 369 gpm-2933 psi,;77 rpm-17,000 ft/lbs on bott torque, 19 to 100 ft/hr ROP. MW 9.0/vis 63, ECD's at 9.3 ppg, BGG 21 units. Had 10% increase in cuttings to surface and took sweep into active system.;Cont drilling 8 1/2" hole from 10,511' to 10,728', rot wob 12K, 349 gpm-2987 psi, 80 rpm-14,000 ft/Ibs on bott torque, MW 9.1/vis 60, ECD's 9.4, BGG 17 units.;Last survey at 10.687' md, Inc 24.52, Azi 255.1, 8083' tvd puts us V high and 8' left of the Iine.;K-tORD2 wellhead pressures at 05:00 : 24" = 38 psi, 13 3/8" = 12 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 17.6 lbs Total: 452.8 lbs 10/25/2016 Continue directional drilling 8 1/2" hole from 10,782' to 10,975', ROT WOB 8 -13K, 355 GPM, 3,099 PSI, 80 RPM, 14K Torque on Bottom, 193' Pipe in ground, 32 ft/hr ROP combined sliding and rotating.;Continue directional drilling 8 1/2 hole from 10975' to 11,046. [Slide from 11,004' to 11, 037'] 80 RPM, 17K Torque, 354 GPM 3200 psi, UW 156, DW wt 85, RW 110 while pumping. WOB 16K, 71'.;Pipe in ground, 23 FPH ROP.;Work pipe to make a connection and lube drilling line. Get SPR.;HPU #2 went down. Wire melted on the exhaust manifold. Work pipe at 30 RPM, 250 GPM, 1580 PSI, while making repairs.;Directional drill 8 1/2 hole F/ 11,046' T/ 11,102'. 80 RPM, 14K Torque, 357 GPM, 3004 PSI. Started loosing pressure. 56' Pipe in ground 37'FPH ROP.;Work on #1 mud pump, noticed noise from fluid end, trouble shoot same. Found wash on fluid end discharge of #1 pod, and OD of seat washed. Cleaned seating area of fluid end and Baker Locked new.;seat in place. Applied steam to out side of fluid end to shorten set time of Baker Lock. Short trip from 11 103'to 10300' while Baker Lock cures. Perform rig service.;Directional drill 8 1/2 hole from 11,102' to 11,190', sliding as required, 80 RPM, 14K Torque, 360 GPM, 3100 PSI, 88' Pipe in ground 19'FPH ROP.;AOGCC waived witness of BOP test, scheduled for Thursday Fluid loss to well bore: 0 bbls. Daily metal recovered: 16.4 lbs Total: 469.2 Ibs;K-10RD2 wellhead pressures at 05:00 : 24" = 38 psi, 13 3/8" = 12 psi, 9 5/8" = 0 psi 10/26/2016 Directional drill 8 1/2 hole from 11,190' to 11,288'. On bottom, 348 GPM, 3000 PSI, 10-15K WOB, 80 rpm, 14-16K Tq. BGG 12 units, MW 9 PPG, ECD 9.3 PPG, 60 VIS.;Directional drill 8 1/2 hole from 11,288' to 11,383'. 350 GPM, 3100 PSI, 12K WOB, 12 to 17K Tq, 80 RPM, UW 156, DW 89K, Rt wt 115K.;Directional drill 8 1/2 hole from 11,383' to 11445'. 350 GPM, 3065 PSI, 12K WOB, 11.5 to 13-15K Tq, 80 RPM, UW 153, DW 90K, Rt wt 118K. Note: have a degrading MWD signal.;Lost MWD signal, troubleshoot same, charge pulsation dampeners on both pumps, clean suction screens, with no significant improvement. Cycle MWD in an attempt to reset same.;Mix and pump high viscosity sweep around while performing cleanup cycle.;Monitor well for flow (static) pump dry job;Trip out of hole from 11445 to 9729', for MWD failure and BOP test;K-1 ORD2 wellhead pressures at 05:00 : 24" = 38 psi, 13 3/8" = 12 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 6.4 lbs Total: 475.6 Ibs;Last survey MD=11383.38, INC=31.97, AZM=241.07, TVD=8703.88 PTB MD=11445, INC=33.4, AZM=239.7, TVD=8759 Currently 12.62' High, 13.54 Left of line 10/27/2016 Continue to pull out of hole from 9,729' to 8,335'. Hole fill up to where we stopped filling was 1.9 bbis over.;Rig up BOP test assembly, hang DP off the bottom of the test plug, and land out in wellhead. Fill BOPE with FIW, bleed air out of system and operate annular. Witness of test was waived by;AOGCC Jim Regg. When test plug was set, started disassembling the fluid end off MP#1, and prep MP#2 for weld repair.;Test annular to 250 and 2500 PSI, test all other BOPE to 250 and 3500 psi, test chokes to 1500 psi, test all rig gas alarms and PVTs, had one fail pass. Had slight drip on outside KLV stem;packing, greased valve and it held. Note: Had derrick man injure right wrist and ring finger while working on #1 mud pump.;Rig down test equipment, drain water from stack to drain tank, skim oil from same, production verified clean and water was shipped to production. Break down test joint, and valves, and filled stack;with mud. Note: Had spill to deck.;Clean up OBM in cellar and drill deck utilizing absorbs and vacuum system.;Prep to cut drilling line, kelly up on stump, hang blocks, and remove load cell, slip and cut approximately 180' of Iine.;Work on automatic driller PLC controls, continue to work on mud pumps.;K-10RD2 wellhead pressures at 05:00: 24" = 38 psi, 13 3/8" _ 12 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 475.6 lbs; Last survey MD=11383.38, INC=31.97, AZM=241.07, TVD=8703.88 PTB MD=11445, INC=33.4, AZM=239.7, TVD=8759 Currently 12.62' High, 13.54 Left of line 10/28/2016 Continue working on PLC automatic driller issues, with no resolution. Continue working on #2 mud pump, changed out both pulsation dampeners. After inspection both pulsation dampener bladders were;bad. Charge #1 pulsation dampener too 750 PSI, and #2 pulsation dampener too 700 psi. Worked on TD hydraulic leak, and bleed off issues for TD extend.;Run 2 stds in the hole to get bit in open hole. Run charge pumps to circulate mud through bleeders to remove air from system. Bring on #1 mud pump, and blew a pop -off valve due to Iower;IBOP being closed. Open IBOP and re-set pop -off, run each pump at 200 GPM, and then together at 300 GPM. Pumps ran smooth but we were unable to get a MWD communications signal. Kelly hose;developed a small leak while doing our circulating test. Checked the pulsation dampeners and they were still pressured up.;Mix and pump dry job pill, had issues getting the centrifugal pumps primed.;Trip out of hole from 8501' to 4040', for MWD failure, Calculated displacement 26.3 BBL, actual displacement 25.8 BBL;Trip out of hole from 4040' to 645', for MWD failure, Calculated displacement 20.03 BBL, actual displacement 20.80 BBL.;Work BHA rack back HWDP, jars, NMDC, laydown MWD, download data, laydown motor and bit. Clean and clear rig floor. Motor showed minimal movement in bearing gap;however it took considerable torque to rotate motor and drain same. Bit bad broken cutters on gauge and shoulder. Bit Grade 1-4-BT-G-X-1-NO-DTF, Photos in "0" Drive;Pick up new BHA;K-10RD2 wellhead pressures at 05:00: 24" = 38 psi, 13 3/8" = 12 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 475.6 Ibs;Last survey MD=11383.38, INC=31.97, AZM=241.07, TVD=8703.88 PTB MD=11445, INC=33.4, AZM=239.7, TVD=8759 Currently 12.62' High, 13.54 Left of line 10/29/2016 Pick up new BHA V. Upload data ..,o tool. Continue in hole with first stand of HWDP.;Break circulation ...,,i test tools and verify MWD communication on each pump. Had good signals on both pumps.;Trip in hole to 584' last stand of HWDP;Driller latched onto the last stand of HWDP, Floorhand didn't think they latch completely. The bottom of the elevators were above the top of the DP in the derrick, with the links still kicked out.;The driller attempted to slack off, and the elevators set down on top of two stands of OF, causing them to bow out in the derrick and pushing the bottom of the HWDP to the back of the derrick.;This caused the elevators to cock in the bails. Using a tugger, and a lifting eye, the stand of DP was lifted to release the pressure on the elevators, and free the stand of HWDP.;The elevators were lowered to the floor, and the decision was made to remove the hydraulic elevators, and replace with manual elevators. The links were kicked out to test them, that is when it was;noticed that bails and elevators were uneven. Inspected TD and noticed, the off drillers side ram bracket for the link tilt was bent. The ram and ram bracket was removed and discovered that a repair;had been performed using a "helicoil", that had failed. This incident most likely caused this failure. The welder was instructed to fabricate a new bracket for TD link tilt. Pictures in 0-drive.;Change out Kelly hose while waiting on bracket and parts. Also doing derrick and TO inspection.; Using the extend function on the top drive slowly stage in the hole breaking circulation at 3021' Tested MWD at 250 GPM all good.;Using the extend function on the top drive stage in the hole breaking circulation at 6048'.;K-tORD2 wellhead pressures at 05:00 : 24" = 38 psi, 13 3/8" = 12 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 475.6 lbs; Last survey MD=11383.38, INC=31.97, AZM=241.07, TVD=8703,88 PTB MD=11445, INC=33.4, AZM=239.7, TVD=8759 Currently 12.62' High, 13.54 Left of line 10/30/2016 Run in hole without link out function using the extend function on the TD from 6048, to 8387'. (Above window).;Make up TD and run #1 pump, 250 GPM, orientate to the high side, with pumps off slide through window @ 8445' with no issue. Run in hole and set down at 8724' (Slide area). attempt to work through;Continue trip in hole to 9505' and set do 14K, pulled 20K over to get free (Coal Stringers), make up TD and pump at 250 GPM. Wash through tight spot to 9520' with no issues.;Continue to trip in hole to 11,351' with no issues.;Make up TD at 11,351' and precautionary wash and ream to bottom at 11,445', no fill on encountered, 300 GPM, 2757 psi. PU to 11,417' and take a check shot survey. Confirmed tools were good.; Directional drill 8 1/2 hole from 11,445' to 11500' , WOB 4-6, DIF 200- 300 PSI, SPP 3010 PSI, GPM 335, UW 148, DW 87, RW 100, Total footage 55' AVG ROP 16 FPH;Directional drill 8 1/2 hole from 11500' to 11541 ' , WOB 4-8, DIF 150-300 PSI, SPP 3010 PSI, GPM 335, UW 148, DW 87, RW 100, Total footage 51' AVG ROP 14 FPH;Stalled motor at 11507' pulled 25K over getting off bottom pipe was free resumed sliding.; Directional drill 8 1/2 hole from 11541' to 11604', WOB 6-12, DIF 150-350 PSI, SPP 3010 PSI, GPM 341, UW 150, DW 87, RW 102, Total footage 63' AVG ROP 21 FPH;Direclional drill 8 1/2 hole from 11604' to 11654', WOB 6-12, DIF 150-350 PSI, SPP 2750 PSI, GPM 341, UW 150, DW 87, RW 102, Total footage 50' AVG ROP 17 FPH;K-10RD2 wellhead pressures at 05:00: 24" = 39 psi, 13 3/8" = 12 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 6.4 lbs Total: 482.0 lbs; Last survey MD=11570.16, INC=36.19, AZM=234.98, TVD=8858,50 Currently 13.53' High, 6.16 Left of line 10/31/2016 Directional drill 8 1/2 hole from 11,654' to 11,667'.;Work pipe, back reaming to make a connection, started pulling tight, motor stalled and blew the pop -off on #2 pump. Reset pop -off and continue reaming stand, getting a lot of fines over shaker.;Decision made to do a clean up cycle, to clean hole. 80 RPM, 15K TK, 320 GRM, 2600 psi.; Directional drill 8 1/2 hole from 11,667', to 11,813', WOB 4-8, Diff 150 PSI, GPM 325, SPP 2475 PSI, RPM 80, UW 158, DW 88, RW 110, Total footage 146, AVG ROP 17'.;Having issues with torque and RPM reading on Pason due to torque sensor on the TD.;Lost a swab on #1 mud pump. Pulled one std and circ with #2 pump at 160 GPM. Changed swab and begin installed new sensor on TD.;Complete installation of torque sensor on TDS.;Directional drill 8 1/2 hole from 11813% to 11,867', WOB 4-10, Diff 170 PSI, GPM 325, SPP 2800 PSI, RPM 80, UW 158, DW 88, RW 115, Total footage 54, AVG ROP 22'.;Directional drill 8 1/2 hole from 11867' to 11919', WOB 4-11, Diff 170 PSI, GPM 330, SPP 2850 PSI, RPM 80, UW 158, DW 88, RW 115, Total footage 52, AVG ROP 26'.;Circulate Bottoms up had a significant amount of fine cuttings came back.;Short trip from 11919 to 11445 had no over pull hole slick.; Directional drill 8 1/2 hole from 11919' to 11950', WOB 4-11, Diff 170 PSI, GPM 335, SPP 2850 PSI, RPM 80, UW 158, DW 88, RW 115, Total footage 52, AVG ROP 15'.;K-10RD2 wellhead pressures at 05:00 : 24" = 40 psi, 13 3/8" = 14 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 6.9 lbs Total: 488.9 lbs; Last survey MD=11886.52, INC=40.03, AZM=229.68, TVD=9103,15 Currently 14.94' High, 4.71 Left of line, Distance to plan 17.50' 11/1/2016 Directional drill 8 1/2 hole f/ 11,950't/ 11,970'.;Work pipe and it was pulling 20 k over. Get to a free spot and back ream stand back past beginning of slide. Rotate and reciprocate doing a clean up cycle. Got back a lot of fines. Made the decisiorrto make shorter slides before working the pipe. ART hands still working on PLC and hyd issues.; Directional drill 8 1/2 hole f/ 11,980't/ 12,047'. Sliding at 3 to 7k WOB, 324 GPM, 2650 Psi.;Backream and circ. Pull 1 std to get off bottom.;Service rig. Get oil sample f/ TO gear box. Trouble shoot max torque spool valve on TD.;Work on adjusting torque settings on TD. Sheared out grabber dies. Change out grabber dies. ART hands made adjustments with PLCs.;Directional drill 8 1/2" hole f/ 12,047' to 12,130'.; Directional drill 8 1/2" hole from 12,130' to 12,200'.;K- 10RD2 wellhead pressures at 05:00: 24" = 40 psi, 13 3/8" = 14 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 11.4 lbs Total: 500.3 Ibs;Last survey MD=11886.52, INC=40.03, AZM=229.68, TVD=9103,15 Currently 17.82' High, 8.61' High of line, Distance to plan 19.79' 11/2/2016 Directional drill 8 1/2 hole f/ 12.200' t/ 12,265'. GPM 325, psi 2700, WOB 10k, RPM 80, Torque 1010 13k, Up wt 162, Dn wt 90, Rt wt 112.;Directional drill 8 1/2 hole f/ 12,265' U 12,301'. GPM 335, Psi 2730, WOB 10k, RPM 80, Torque 10 to Ilk, Up wt 163, Dn wt 90, Rt wt 113.;Directional drill 8 1/2 hole f/ 12,301' to 12,360'. GPM 335, Psi 2730, WOB 10k, RPM 80, Torque 10 to Ilk, Up wt 163, Dn wt 90, Rt wt 113.;Directional drill 8 1/2" hole from 12,360' to 12,380'. GPM 335, Psi 2730, WOB 10k, RPM 80, Torque 10 to Ilk, Up wt 163, On wt 90, Rt wt 113.;Set back one stand. Circulate 24 bbl sweep with 12.5 Ib/bbl nut plug at 338 GPW2700 psi while rotating and reciprocating pipe. Had 10% increase in cuttings with sweep back to surface. Monitor well.; Pump dry job. POOH from 12,320' to 10,980' on elevators without issue.;K-10RD2 wellhead pressures at 05:00: 24" = 42 psi, 13 3/8" = 14 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 13.2 lbs Total: 513.5 Ibs;Last survey MD = 12,326.91, INC=58.28, AZM = 224.93, TVD = 9393.41 Currently 19.72' High, 13.6'Right of line, Distance to plan 23.66'. 11/3/2016 POOH from 10,980' to 9049' on elevators without issue. At 9049' we pulled 10k over and worked back through and it cleaned right up. Continue POH to 8925'. Pulled up 20k over and broke it back dn.;Worked up to 40k over breaking back easy but we couldn't get through. Had to MU the TO and use pump and rotary to backream through to 8906'. Continued POH to csg w/ no issues: Hole fill was good.;Had BOP drill and well was secured in 55 sec. Clean rig floor to prep for welding on TD. Secure floor area with tarps and fire blankets. Get permits and have PJSM. Put threaded spacers in bolt holes;for bracket and weld them in place. Install bracket and bolt in place. Weld bracket in place. PU tarps and fire blankets. Install link tilt rams and hook up hyd hoses. Test link tilt assem. Its good.;POOH 27 stands to 6564'.;Make up test joint and hang off string with test plug.;Rig up test equipment and purge BOPE.;Test BOPE as per sundry. Annular preventer at 250 U2500 H. All other components at 250 U3500 H. AOGCC (Jim Regg) waived witness of test at 1640 hrs on 11-1-16. Had one FP. Operated blind ram,;re- tested and they passed.;R/D test joint, test plug and testing equipment. Drain stack. Troubleshoot and fill trip tank.;POOH from 6564' to 5100' with BHA #B.;K- t ORD2 wellhead pressures at 05:00: 24" = 42 psi, 13 3/8" = 14 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 7.2 lbs Total: 520.7 Ibs;Last survey MD = 12,326.91, INC=58.28, AZM = 224.93, TVD = 9393.41 Currently 19.72' High, 13.6'Right of line, Distance to plan 23.66'. 11/4/2016 POOH from 5100' to BHA at 634'.;Lay do 2 jts of HWDP above jars and 4 jts below. Stand the rest back with the jars.;Plug into MWD and attempt to download. Had issues with the down load. Couldn't get any readings out of the EDR tool. Decision made to change out tools.;Lay do all the MWD tools, Drain motor and break bit. LD motor. Bit grade: 2-1-WT-A-X-1-NO-BHA.;PU new mud motor, bit, and MWD tools for BHA #9. Upload MWD.;RIH with NMDC's. C/O elevators and run 1 stand of HWDP.;Service rig. Change out saver sub and grabber dies. Grease and tighten wash pipe.;Shallow hole test MWD. RIH with BHA #9 filling pipe every +- 3000' to 7504'.;K-10RD2 wellhead pressures at 05:00: 24" = 38 psi, 13 3/8" = 12 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 520.7 Ibs;Last survey MD = 12,326.91, INC=58.28, AZM = 224.93, TVD = 9393.41 Currently 19.72' High, 13.6'Right of line, Distance to plan 23.66'. z 11/5/2016 RIH with BHA #9 from 7504' to 88�., . PU 28 more jts of 4" DP.; Break circ and orientate tool to high side. , ,ave PJSM. Cut and slip drilling line 150'.;Service rig.;RIH f/ 8829't/ 12,306'w/ no tight spots.;Fill pipe and wash do to 13,370'. PU to 13,360' and take check shot. Looked good. Wash to bottom at 13,380' with no fill.;Directional drill 8 1/2 hole f/ 12,380't/12,429'. Sliding=GPM 325, 2780 psi. WOB 3 to 6k. Rotating= 340 GPM, 2845 psi, 80 RPM, 10, 600 TQ, 16 ROP, ECD 9.4, MW 9.1, WOB 3 to Sk.;Directional drill 8 1/2" hole f/ 12,429' to 12,520'. Sliding=GPM 310, 2480 psi. WOB 3 to 6k. Rotating= 310 GPM, 2645 psi, 80 RPM, 10, 600 TQ, 15.2 ROP, ECD 9.4, MW 9. 1, WOB 3 to 5k.; Directional drill 8 1/2" hole from 12,520' to 12,646'. Sliding= GPM 325, 2780 psi. WOB 3 to 6k. Rotating= 340 GPM, 2845 psi, 80 RPM, 10, 600 TQ, 34 ROP, ECD 9.4, MW 9.1, WOB 3 to 5k.;K-10RD2 wellhead pressures at 05:00: 24" = 38 psi, 13 3/8" = 12 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 2.5 lbs Total: 523.2 Ibs;Last survey MD = 12,520, INC=58.28, AZM = 224.93, TVD = 9484'. Currently 15.17' High, 8.05'Ri ht of line, Distance to plan 17.18'. 11/6/2016 Directional drill 8 1/2" hole f/ 12,646't/ 12,740'. Sliding= GPM 310, 2580 psi. WOB 4 to 6k. Rotating= 310 GPM, 2645 psi, 80 RPM, 10, 600 TQ, 44 ROP, ECD 9.3, MW 8.9, WOB 7 to 10k.;Directional drill 8 1/2" hole f/ 12740' t/ 12,745', Started acting like we needed to clean the hole up.;Circ and stroke the pipe to see if a clean up cycle would help.; Directional drill 8 1/2 hole f/ 12,745't/ 12, 808'. Mix and pump high vis nut plug sweep while drilling in rotation. 338 GPM, 3050 psi, 80 RPM, 12k TQ, 7k WOB. Torque started climbing up so we;decided to make a short trip. Torque swinging f/ 12k U 18k.;Short trip from 12,808' to 12,364'. Had to pump through tight spots at 12,540' and 12,364' due to 30K over pulls.; Directional drill 8 1/2 hole from 12,808' to 12, 830'. Sliding = GPM 340, 2950 psi. WOB 4 to 6k. Rotating= 340 GPM, 3000 psi, 80 RPM, 12, 600 TQ, 44 ROP, ECD 9.3, MW 8.9, WOB 7 to 1 Ok.; Directional drill 8 1/2 hole from 12,830'to 12, 848'. Sliding = GPM 310, 2450 psi. WOB 4 to 10k. Unable to get effective weight transfer to bit. Consult with engineer. Decide to rotary drill and;check surveys. Rotary drill from 12,848' to 12,870'. Rotating= 330 GPM, 2800 psi, 80 RPM, 11, 600 TQ, 44 ROP, ECD 9.3, MW 8.9, WOB 7 to 10k.;K-10RD2 wellhead pressures at 05:00: 24" _ 40 psi, 13 3/8" = 14 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 10.5 lbs Total: 532.7 Ibs;Last survey MD = 12,772.71, INC=73.79, AZM = 223.71, TVD = 9569'. Currently 1.67' Low, 1.86' Right of line, Distance to plan 1.86'. 11/7/2016 Rotary drill from 12,870' to 12,926'. Rotating= 330 GPM, 2800 psi, 80 RPM, 11, 600 TQ, 12 ROP, ECD 9.3, MW 8.9, WOB 7 to 10k. At 0715 hrs the platform lost all power due to electrician;bumping a switch. Had rig running on platform and rig power so we just switched to rig power. Rig was blacked out about 30 sec. Camp was put on standby gen after about 5 min.;Rolary drill from 12,926't/ 12,975'. Rotating= 338 GPM, 2830 psi, 80 RPM, 11, 600 TQ, 12 ROP, ECD 9.3, MW 8.9, WOB 7 to 10k.;Rotary drill from 12,975' to 13,049'. Rotating= 338 GPM, 2830 psi, 80 RPM, 11, 600 TQ, 12 ROP, ECD 9.3, MW 8.9, WOB 7 to 10k.;Rotary drill from 13,049'to 13,100'. Rotating= 338 GPM, 2830 psi, 80 RPM, 11, 600 TQ, 12 ROP, ECD 9.3, MW 8.9, WOB 7 to 10k.;K-10RD2 wellhead pressures at 05:00: 24" = 40 psi, 13 3/8" = 14 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 8.3 lbs Total: 541.0 Ibs;Last survey MD = 13,025.48, INC=77.86, AZM = 223.44, TVD = 9632'. Current) 9.23' Low, 3.79' Left of line, Distance to plan 9.98'. 11/8/2016 Rotary drill from 13 100'to 13.145'. Rotating= 338 GPM, 2830 psi, 80 RPM, 11, 600 to 12,200 TQ, 12 ROP, ECD 9.3, MW 8.9, WOB 7 to 10k.;Rotary drill from 13,145' to 13,153'. Rotating= 330 GPM, 2720 psi, 80 RPM, 11, 600 to 14,200 TQ, 10 ROP, ECD 9.25, MW 8.9, WOB 4 to 10k.;Pump 20 bbl Hi -vis sweep at 360 GPM/2980 psi. Sweep came back on time with 10% increase in cuttings.;Unable to break out of top drive. Lay down 2 joints. Break out saver sub and change out same. Also, change grabber dies.;POOH on elevators without issue from 13,058' to 8828'. Had over pulls at 13.040', 12,986', 12,605', 12,540' and 12,250'. Encountered tight spot at 8828' and not able to pull through with 40K over.;Back ream 8832' to 8818' with 315 GPM/1980 psi, 80 RPM, 7600 tq. Work through area until clean. Orient high side for pulling through window. POOH to 8422'.;Mix and pump 20 bbl dry job. Continue POOH to 6519' standing back in derrick.;POOH laying down 25 joints of drill pipe and 6 joints of HWDP.;Continue POOH standing back in derrick with BHA #9.;K-10RD2 wellhead pressures at 05:00 : 24" = 40 psi, 13 3/8" = 14 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 5lbs Total: 546.0 Ibs;Last survey MD = 13,115.38, INC=79.08, AZM = 223.99, TVD = 9650'. Currently 7.20' Low, 6.10' Left of line, Distance to plan 9.44'. 11/9/2016 POOH f/5718' to BHA #9.; Work and check BHA #9. Clean up work area during down load. Bit graded 6 -7 -wt -N -X -I- CT-PR.;Clean and clear rig floor. Static loss rate @ 1/4 bph.;Make up BHA #10 and up load same. Shallow hole test tools.;Install nuclear sources. 1/4 BPH static loss rate.;RIH with BHA #10 to 5773' filling pipe every 3000'.;RIH picking up 28 joints of drill pipe to 6700'.;K-10RD2 wellhead pressures at 05:00: 24" = 40 psi, 13 3/8" = 14 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 546.0 Ibs;Last survey MD = 13,115.38, INC=79.08, AZM = 223.99, TVD = 9650'. Currently 7.20' Low, 6.10' Left of line, Distance to plan 9.44'. 11/10/2016 RIH with BHA #10 from 6700' to 8422'. Fill pipe brk circ and orient pipe to window.;Adjust torque and chase phantom reading on counsel torque gauge.;Exit window w/ no issues rih fill pipe @ 9620' continue w/ no issues U 20k set do @ 12745' fill pipe brk circ work thru @ 306 gpm @ 2500 psi 50 rpm @ 10.5-11.5 TQ Up /dn/Rot = 145/84/104k.; Ream dean f/ 12745't/ 12765'w/ no motor differential seen.;Continue RIH on elevators f/ 12765'20k set do and 55k over pull @ 13043' and caught on slips. Stand back stand p/up working single.; Work pipe free w/ full circ and regain rotation @ 13000' ream and clean up f/ 13000' t/ 13063'@ 314 gpm @ 2585 psi w/ 90 rpm @ 10 -full stalls @ 20k TQ w/ no mtr diff.;Ream and wash f/ 13063't/ 13153' and feather bottom to start new pattem.;Continue drill 8-1/2" directional hole f/ 13153' U 13233'. 340 GPM/2800 psi, 80 RPM/11-15K torque. WOB 6K, P/U 152K, S/O 77K.;Mad Pass from 13,233' to 12,985'. 308 GPM/2400 psi, 60 RPM/10-11 K torque.;Swivel packing failed. Change out same. Repair MP #2 PRV. Released at 2100 psi.;Mad Pass from 12,985' to 12,779'. 308 GPW2400 psi, 60 RPM/10-11 K torque.;While attempting to break out stand of drill pipe M/U B/O tong function failed after getting a bite. Would not release or break out. Released tongs manually and began reciprocating pipe while;troubleshooting electricaVhydraulic issues. Replace blown fuse in PLC.;Mad Pass from 12,779' to 12,743'. 308 GPM/2400 psi, 60 RPM/10-11 K torque.;K-10RD2 wellhead pressures at 05:00: 24" = 40 psi, 13 318" = 14 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 2 lbs Total: 548.0 Ibs;Last survey MD = 13,233.00, INC=80.32, AZM = 223.58, TVD = 9670'. Currently 7.47' Low, 47.13' Left of line, Distance to plan 47.72'. 11/11/2016 Mad Pass from 12,743' to 11,400'. 308 GPM/2400 psi, 60 RPW10-11 K torque.;Pump 20 bbl Hi -vis sweep at 365 GPM/2930 psi. 80 RPM/9.5 K torque. Had 30 increase in cuttings.;Drop gyro. Chase at 5 BPM/1130 psi. Pump 20 BBL dry job (ineffective).; POOH from 11480' to 8395' on elevators without issue as per gyro hands checking depth each stand.;Monitor well (1/2 BPH loss rate). Clean rig floor. Drain stack.;Make up test joint and test plug. Hang off drill string. Fill and purge BOPE with water. Jest BOPE as per sundry. Annular at 250 U2500 H. All other components at 250 U3500 H. AOGCC witness waived by Jim Regg at 0730 hrs on 11-11-16.;Had failure on test plug seal ring. Replace same and continuing with test.;K-1ORD2 wellhead pressures at 05:00: 24" = 40 psi, 13 3/8" = 14 psi, 9 5/8" _ 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 2.2 lbs Total: 552.2 Ibs;Last survey MD = 13,233.00, INC=80.32, AZM = 223.58, TVD = 9670'. Current) 7.47' Low, 47.13' Left of line Distance to plan 47.72'. 11/12/2016 Continue Test BOPE as per regulations . Annular at 250 U2500 H. All other components at 250 U3500 H. AOGCC witness waived by Jim Regg at 0730 hrs on 11- 11-16.;Had failure of non-regulated test equipment test plug body seal failed on test #4 pulled test plug and replaced same and continued testing.;Also had one F/P �j of low on test # 10 blinds, CMV # 12,9 & 1 bled air re -test good.; Drain stack, Pull test plug and I/dn and r/dn test equipment. Fill stack w/ OBM w/ 1.5 loss. Monitor C, well w/ slight seepage while service rig.;Continue POOH f/ 8395' Vdn 29 jts of dp V 7476' w/ gyro hands confirming depth control.;Continue POOH rack back DP Q, CA tight for casing run f/ 7476' V 913' w/ gyro hands confirming depth control.;RIH from 913' to 1297' for gyro overiap data confirmation.;Hang blocks.;Clear and clean �! rig floor from wet trip.;Cut and slip 140' of drill line. Monitor well. 0.7 BPH loss rate.;POOH from 1297' to BHA.;Stand back HWDP. Lay down BHA. Remove �f Z7 nuclear source and down load MWD. Calculated hole fill: 94.22 Actual hole fill: 69.07 = 25.15 bbls over (wet trip). 1 Bit grade: 2-1-WT-A-X-1-NO-TD;Make up 7 5/8" test joint.;K-10RD2 wellhead pressures at 05:00: 24" = 40 psi, 13 3/8" = 14 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 Ibs Total: 552.2 lbs 11/13/2016 et test plug and run in 4 lock downs.;Fill stack w/ one bbl water and chk "o" ring seal good. Change out lower pipe rams to 7 5/8".;Clean up cellar area and finish filling up stack w/ water and purge air out of BOPE's.;Test annular 250L - 2500H and test lower Rams 250L -3500H on chart . I/dn test jt and r/dn test equipment.; Drain stack, clean rig floor.;R/up to run 7-5/8" casing.;P/up m/up float equipment and test same (ok). Continue running 7-5/8" as per drillers running tally. Break circulation at 2800'. Ran 122 joints/12 joints left out.;Rig down Weatherford. Make up liner hanger/packer. Dress same. Fill with 'Pal mix'.;RIH one stand of HWDP. Circulate liner volume. 209 GPM/650 psi.;K-10RD2 wellhead pressures at 05:00: 24" = 38 psi, 13 3/8" = 12 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 552.2 lbs '' 11/14/2016 Continue and finish circulate liner v,-ae after making up liner hanger/packer at 5120'. 208 GPW640 psi.... _30 bbls totals.;Up wt 100k do wt 78k installed pipe wiper rubber RIHw/ 4 std HWDP out of derrick @ 30 fpm P/up rabbit rih w/ 14 jt HWDP f/ 5120't/ 5785'.;Continue rih w/ dp out of derrick and rabbiting same @ 30 fpm filling on the fly topping off every 5 std U 8307'.;Stage pumps up f/ 53 gpm @ 400 psi tt 200 gpm @ 900 psi and circ 508 bbls while reciprocating w/ just under 1 bph loss rate.;Establish parameters. 3-5 rpm @ 12k tq , 10 rpm @ 8-10k tq , 20 rpm @ 8-9 tq, & 25 rpm @ 8-9k tq. No pump up/dn = 147/82k.;P/up M/up cmt head and stage same in V-door.;Service rig.;Continue run 7-5/8" liner on DP out of derrick and rabbit same filling on the fly f/ 8307' to 13,128'. Break circulation and obtain parameters: 9600' P/U 150 K, S/O 80 K, 1.2 BPW500 psi.;11,640' P/U 190 K, S/O 85 K, 2.6 BPM/750 psi. 13,030' P/U 210 K, SIO 86 K, 2.6 BPM/880 psi.;Wash down at 3 BPM/900 psi from 13,128' to 13,195'. Began packing off. Work through area (10' coal). P/U 210 K, S/O 86 K. 3 BPM/900 psi. Set down at 13,211' and attempting to work past (6' coal).;Reset stroke counter and circulate and condition mud while working on set down area at 13,211'.;K-10RD2 wellhead pressures at 05:00: 24" = 38 psi, 13 3/8" = 12 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. IDaily metal recovered: 0 lbs Total: 552.2 lbs 11/15/2016 Continue to circulate bottoms up, and attempt to stage up flow rate, unable to get above 3 BPM rate with out packing off @ 13211' w/ loss rate @ 1.8 BPH.;Lay down single, and stage up flow rate to 4.1 BPM rate. Working pipe staying above coal @ 13192' and maintaining pressure below liner hanger setting point. Loss rate slowing to .9 BPH.;Pick up cement head and pup joint, rig up cement manifold, and resume circulating, while reciprocating pipe. Schlumberger trouble shooting data acquisition system.;Continue circulating and reciprocate pipe @ 4 BPM, 942 PSI, UW 190K, DW 90K, while waiting on Schlumberger to resolve data acquisition issues with cement pump.;Prejob safety meeting with all personnel involved. Test lines to 500 PSI low and 4300 PSI high. Pump 16 BBL of 12 PPG MUDPUSH II spacer. Mix and pump 61.5 BBL of type "G" cement 0 15.3 PPG, tolal:of 281 sacks, with D046 Antifoam @ 2%BWOC, D202 Dispersant @ .75% BWOC, D400 Gas Block @ .75% BWOC, D154 Extender @ 7.5% BWOC, D198 Retarder @. I % BWOC at a rate of 2.9 to 3.8 BPM, while reciprocating;pipe. Dropped drill pipe cement wiper dart and displaced cement with 8 BBL MUDPUSH, and 9.1 PPG OBM, at 5 BPM rate, caught pressure at 45 BBLS, at 92 BBL away seen dart engage liner wiper plug,;continued pumping and bumped plug at 313.3 BBLS away, FCP 2200 PSI @ 3 BPM rate, increased pressure to 2800 PSI. CIP @ 23:05. Maintain full returns through cement lob (Note: calculated displacement;314.8 BBL, actual 313.3 BBL) Pressured up to 3000 PSI and set Baker liner hanger, bleed pressure off and check float integrity all good. Slack off to 20K and verify liner hanger is set.;Pick up to 95K and pressure up to 3000 PSI with rig pump, then brought pressure up to 4200 with BOP test pump to release running tool. Pick up to 90K break over weight, set down to 20K engaging;dog sub. Did not have sufficient weight to engage ZXP liner top packer, picked up and repeated process with no joy. Picked back up to 90K break over engaged rotary @ 20 RPM and set down to 20K;and was able to see a bobble that indicated ZXP liner top packer was set. With pumps rolling maintaining pump pressure of 900 PSI picked up out of liner top packer (Note: TOL @ 8147', Shoe @ 13184');Circulate a surface to surface volume to clear any residual mud push spacer or cement, while reciprocating at a 9 BPM rate. None seen at bottoms up.;Rig service, grease crown, blocks, and TDS, inspect TDS and saver sub.;Trip out of hole with Baker liner hanger running tool and dog sub from 8147' TOL to 6803'.;K-10RD2 wellhead pressures at 05:00 : 24" = 38 psi, 13 3/8" = 12 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 552.2 lbs 11116/2016 Trip out of hole from 6803' to 733' transfer OBM to upright storage tanks.;Rack back 5 stands of HWDP in derrick, and lay down 12 joints of HWDP, sucking foam balls through HWDP to evacuate and clear all OBM prior to laying down. Continue to transfer OBM to storage tanks.;Continue to laydown BHA verified, on dog sub that shear pins on ZXP liner top packer had sheared. Clean rig floor and prepare pits for cleaning.;Pick up cement head and break out XO, and spacer pups, continue to break out XO on single of DP.;Make up 4" test joint, Conduct PJSM with crew, bleed off accumulator, change out lower rams from 7 5/8" to 5 1/2" x 2 7/8" VBR, fill stack with FIW and test and chart to 250 PSI low and 3500 PSI.;high for 5 minutes on each test. All Good. Pull test plug, lay down test joint, and drain water to slop tank. Continue to clean pits.;Perform wellbore jug test to 1500 PSI for 15 minutes pressure dropped down to 1360 and leveled out.;Pickup BHA #11 cleanout assembly 6. 75" bit (1) 7.625 casing scraper, and (2) 9.625 casing scrapers. Trip in hole to 816', continue to clean pits. Had platform power failure.;Swap from platform power to rig power while production trouble shoot their generator. Found that a 6" bit was picked up and ran in cleanout assembly were a 6.75" bit was required.;Trip out of hole from 816' and change out bit from 6" to 6.75". Change torque setting on top drive from 20K to 10K for NC38 connections. Trip back in hole to 376'. Continue to clean pits.;Trouble shoot HPU in dog house.;Cut and slip drilling Iine.;Tdp in hole with cleanout assembly to 825'.;K-10RD2 wellhead pressures at 05:00: 24" = 35 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 552.2 lbs 11/17/2016 Run in hole with BHA #11 to 11 91'while cleaning pits.;Perform rig service. Grease TDS and crown inspect TDS continue cleaning pits.;Trouble shoot maximum torque on top drive. Found hose routed incorrectly, changed hose position, and changed out grabber dies.;Continue to run in hole to 2272', kelt' up and fill pipe, continue to clean pits.;Mud over ran ditch at shakers, we had an estimated 15 gallon spill to secondary containment / drill deck. See SO -1 for details, operation was shut down to clean and dear mess.;Continue to nun in hole from 2272' to 4947' with cleanout BHA, filling pipe as required to maintain short system, pick up first 9- 5/8" casing scraper assembly, continue; running in hole too 8138' (top of liner at 8147'), while continuing to clean pits.;Picked up second 9 5/8" casing scraper and run in hole from 8138', trip through liner hanger at 8147', with no restriction, did see an increase of 5K in drag when scraper entered casing. Continue to;trip in hole to 12281' with pipe from derrick then picking up singles tagging at 13066';K-tORD2 wellhead pressures at 05:00: 24" = 36 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: O lbs Total: 552.2 lbs 11/18/2016 Stage pumps up to 350 GPM. Circulate, condition mud clean hole, while rotating and reciprocating pipe, UW 155K, DW 90K, TRK 9K. Had a moderate amount of sand coming back that did not diminish,;decision made to short trip upper 9 5/8" casing scraper to surface, so as to minimize flow obstructions while circulating 9 5/8" casing dean. Fill pit 5 with 56BBL of FIW, and change suction valve.;Prepare for short trip, flow check, well static, trip out of hole from 13066 to 11260. While driller was picking up the pipe, with elevator at +- 50', the pipe stopped moving, the driller;cycled brake and attempted to pick up. The blocks fell approximately 4' before E -brake engaged.;Set slips and broke a single off, extend TDS over and place in mouse hole, using crane as an assist in the event of brake failure. With single and TDS in mouse hole, the block was tied off with the;hoist to keep from falling, installed pump in sub, and FOSV, established circulation at 350 GPM.;Troubleshoot draw works, identified hydraulic motor on drillers side of draw works was spinning, shut down HPU and continued to circulate with MP #2 @ 275 GPM 1570 PSI;PJSM Removed and replaced drillers side hydraulic motor on draw works, pulled gear box cover on drillers side of draw works and found metal shavings in oil and broken and sheared bolts on drive hub.;Pull housing on main drive of draw works, removed sheared bolts and dowel pins, dressed hub and housing, reassembled draw works, drained oil and flushed same while working blocks up and down, rilled;draw works with clean oil, removed 2" HP hose with FOSV and prepped to pull pipe. Changed out swab and liner on MP #2 Pod #3.;Resume short trip from 11260' to 9200';K-10RD2 wellhead pressures: 24" = 35 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: O lbs Total: 552.2 lbs Daily Code 8: 13.5 Total: 62.0 11/19/2016 Continue short trip from 9413' to 8.__ laying down top 9-5/8" scraper assembly with single on top.;Stage H..., ps up to 400 GPM, rotating at 25 RPM and reciprocating pipe, Circulate 2 surface to surface volumes with moderate sand returns, mix a 2-0 BBL high viscosity sweep.;Pump 20 BBL high viscosity sweep around while continuing to rotate and reciprocate pipe had a 100% increase in returns from sweep.;Continue to circulate at 400 GPM, 2130 PSI, rotating and reciprocating, with bit at 8097, and 9 5/8" casing scraper at 3196' Continued to have sand at shakers. UW901K. DW 60K, RW72K.;Rack back 1 stand and noticed bolts on driller side drum feather clamp were loose, shut down and tighten same.;Rack back a second stand and pump a 22 BBL high viscosity weighted sweep, circulated around at 400 GPM, 2200 PSI, 80 RPM, while reciprocating pipe. Bit at 7971'9 5/8" casing scraper at 3043';Had a 30% increase in returns when sweep came back.;PJSM, drain BOP stack to tote in preparation of BOP testing.;Reprogram PLC to adjust E-brake for a hard stop tested same all good.;Make up 4" test joint to include FOSV, Dart Valve, and pump in sub made up on 13 5/8" FMC OCT Type 3 Uni-head test plug. Run all in hole and landed with XT39 drill string hung off below test plug.;Fill stack and choke with test fluid, work annular to purge air out, Test #1 Test annular on 4" pipe, dart valve, CMV 7,14,15,16 at 250 PSI low and 2500 PSI high for 5 minutes each.;All remaining tests at 250 low and 3500 PSI high. Test #2 Upper pipe rams 4", dart valve, Demco on kill line, CMV 7,14,15,16, Test #3 upper pipe rams 4", FOSV, outside kill, IBOP, 4,5,6,11.;Test #4 upper pipe rams 4", FOSV, inside kill, manual IBOP, CMV 3,10,13, Test #5 upper pipe rams 4", TIW, inside kill, CMV 2,9,12, Test #7 upper pipe rams, FOSV, inside kill, HCR choke.;Test #8 upper pipe rams 4", FOSV, inside kill, manual valve choke, Test #9 lower pipe rams 4", FOSV, Pull 4" test joint out of hole, Test #10 blind rams, inside kill, CMV 1,8,12. Make up;and run 4.5" test joint. Test #11 annular on 4 1/2", inside kill, manual valve choke at 250 PSI low and 2500 PSI high 5 minutes each. Had a fail pass due to leaking LDS. Test #12 upper pipe rams;4.5 pipe, inside kill, manual valve, Test #13 lower pipe rams 4.5", Test #14 C-1 upper pipe rams, inside kill, CMV 12,8, 1500 PSI, Test #15 C-2 upper pipe rams, inside kill, CMV 12,1 1500 PSI.; Perform accumulator drawdown test. Initial pressures 3100 PSI accumulator, 1500 PSI manifold, accumulator drawdown 1750 PSI, 200 PSI recovery 16 seconds (1950 PSI) , full recovery 98 seconds; (3100 PSI). 4 N2 bottles average pressure 2575 PSI.;Lay down test joint, drain stack and pull test plug.;K-tORD2 wellhead pressures: 24" = 35 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 552.2 lbs Daily Code 8: 2.0 Total: 64.0 11/20/2016 Pick up 1 joint of drill pipe and keliy up, fill stack, and break circulation. Line up for casing test, pressure up to 2700 PSI, swivel packing began leaking, bled off pressure, break off top drive.;Make up head pin and high pressure hose, and test casing to 2706 PSI, with pressure falling to 2650 PSI in 30 min, recorded on chart (good test).;Change out swivel packing, and test grabber pressure while torqueing.;Run in hole from 8026' to 8184' pick up 2 joints and the top 9-5/8" casing scraper assy. Trip in hole from 8184' to 13013', filling pipe @ 10420'.;Fill pipe and break circulation, stage pump rate up and warm mud. tag landing collar at 13066', 395gpm, 3200 PSI, UW 142K, DW 82K, RW 107K, circulate a bottoms up while rotating and reciprocating,;60 rpm, and TQ 9-10k stalls.;Pump a 23 BBL high viscosity weighted sweep, 11.3 PPG, 600 viscosity, followed by 9 PPG OBM, at 390 GPM, 3150 PSI, while rotating and reciprocating pipe.;Had a 30% increase in sand with sweep at surface. Pumped an additional bottoms up with shakers running clean.;PJSM with all hands involved in displacement, pumped 40 BBL of LVT base oil, and chased with FIW, at 5 BPM, while rotating and reciprocating, taking OBM returns from shakers to upright storage tanks.;With FIW at bit seen a substantial increase in torque, stopped rotation, and continued to reciprocate. With 721 BBL FIW pumped, had interphase at surface, begin taking returns to sand trap.;Total fluid pumped 40 BBL LVT base oil, FIW 816 BBL, Total fluid recovered, OBM 761 BBL, Interphase 75 BBL;Transfer OBM to upright tanks, clean flow box and pull shaker screens.;Transfer OBM from active pits 3, and 4, to ISO tanks, pump interphase from pit 1 to cuttings tank and transfer to safe guard totes.;Clean spill up from drill deck caused from blowing down hose going to ISO tank;Continue to transfer mud from pits to ISO tanks and clean pits.;K-10RD2 wellhead pressures: 24" = 37 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 552.2 lbs Daily Code 8: 3.0 Total: 67.0 11/21/2016 Continue to transfer interface to Safeguard totes, flush kill line, choke line, choke manifold, stand pipe manifold, mud pump bleeders, gun line to trip tank, hole fill pump, and pop of Iines.;Changed rod wash fluid over to water.;Had a spill to the drill deck clean up same.;PJSM, continue cleaning pits, clean vacuum degasser, remove all items from top of pits, clean walls, grating and flow ditch. Clean pit #4, blow down drain lines rig floor and possum belly.;Replace solenoid valve on top drive for extend function. Work pipe occasionally from 13040'-12978', with bottom 9 5/8" scraper at 8125-8063, and top 9 5/8" scraper at 4874'-4812' UW 190K, DW74K;Continue to clean pits #6 (pill pit) and trip tank.;Tdp out of hole for short trip from 13040' to 8081'.;Inspect top 9 5/8" casing scraper and trip back to 13066, hook up 2" HP hose from 9 5/8" annulus valve to emulsion pipeline to TBPF, and pressure test it to 250 PSI low and 1500 PSI high.;K-10RD2 wellhead pressures: 24" = 37 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbis. Daily metal recovered: 0 lbs Total: 552.2 lbs Daily Code 8: 1.0 Total: 68.0 11/22/2016 Rig up to circulate and fill pipe, continue to clean pits and lines.;Held pre-job safety meeting, reviewed JSA with all parties. Pump 820 BBL of FIW down drill pipe taking returns to production pipe line going to TBPF at 5 BPM.;Pump 20 BBLS BARAKLEAN pill and chase with 800 BBL 6% KCL, taking returns to production pipe line going to TBPF at 5 BPM.;Shut down rig pump and close valve at production pipeline. Drill pressure bled off to 0 psi. Line up on choke manifold and monitor casing pressure of 300 PSI (Initial pipeline pressure 300 PSI);Clean possum belly, under shakers, and trip tank. Pressure built from 0 PSI to 160 PSI on drill pipe and from 300 PSI to 452 PSI on casing . Bled pressure off to trip tank and had 1/2 BBLS;of returns. Appears pressure increase was due to expansion. Held PJSM, blow down choke and TDS. Move pipe and check weights to ensure drill pipe was still free. UW 140K, DW 88K,;finish rigging up to lay down XT39 drill pipe.;Trip out of hole laying down XT39 drill pipe, from 13066' to 8348';Service rig, checked bolts on Ring-Feder clamp on draw works hub.;Pull 2 stands, lay down upper 9 5/8" casing scraper and cross overs at 8141', and lower 9 5/8" casing scraper at 4950', continue to pull stands racking back total of 62 stands in derrick to 4156';Check draw works bolts continue to trip out of hole laying down drill pipe. from 4156' to 3050';K-tORD2 wellhead pressures: 24" = 37 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 552.2 lbs Daily Code 8: 0.0 Total: 68.0 Hilct., p Energy Company Composit_ Report Well Name: MRF K-10RD2 Field: McArthur River County/State: Cook Inlet Offshore, AK i (LAT/LONG): evation (RKB): API #: 50-733-20167-02 Spud Date: Job Name: 1612388C K-10RD2 Completion Contractor AFE #: AFE $: Activity Date Ops Summary 11/23/2016 Continue to pull out of hole and lay down XT 39 drill pipe from 3050' to HWDP. Lay down HWDP, cross overs, casing scraper, and bit, everything looked clean.,Clean, clear, and organize floor.,Service rig and tighten all the bolts on the bearing hub of the draw works, found one bolt slightly loose but all the rest were tight, Spot and set Pollard E -line unit and equip.,Rig up Pollard E -line, run in hole with GR, CCL, & CBL logging package, passed through 7 5/8 liner top at 8147' and down to 8700'. Establish parameters on tool and check same, all working good. Run in hole to 12,450'. Attempt to log up, was unable due to software issue. Pull out of hole to 12270' and tools began operating correctly, run back to 12550, tools not working correctly, pull out of hole to check tools.,Tools checked out at / surface. Run in hole to just inside liner and tested tools, all good, ran in the hole to 12,124, attempt to log, continued to have software issues. Tool was acquiring �J f' digital data but wouldn't print to the log. Work on changing the parameters on the computer and finally got everything working properly.,Pull out of hole logging from 12,140, to top of liner at 8147', data recovered appeared to be reversed, made software adjustments and run back in the hole to 12100' and logged up to V 8000', looked like good data acquisition, pull out of hole and rig down Pollard. TOC (a) 10253'., ut and slip 110' of drilling Iine.,PJSM with all parties involved in picking up and running Halliburton TCP perforating guns. rigging up and preparing to pick up guns.,Pick up and run in hole with 1032' of Halliburton 4.625 Max - force Scalloped TCP perforating guns, 5 shots per foot 72 degree phasing, plus 12' safety spacer for a total of 1044',Change elevators from 5" to 2 7/8" pick up 2 joints of 2 7/8" tubing and make up on firing head, change elevators to 3.5 and pick up 2 joints of 3.5" IF drill pipe, RA sub, 2 joints of 3.5" IF drill pie, and FAS FILL Valve,Rig up Weatherford tongs to pick up 4.5" Super -max tubing.,K-10RD2 wellhead pressures: 24" = 37 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 552.2 lbs Daily Code 8: 0.0 Total: 68.0 11/24/2016 Run in hole with Halliburton 4.625 Max -Force scalloped TCP perforating guns, 5 SPF, 72 degree phasing, drifting and picking up 4 1/2 Supermax tubing to 4287',Continue tripping in the hole, drifting and picking up 4 1/2" Supermax tubing from 4287' to 7105'.,Continue tripping in the hole drifting and picking up 4 1/2" Supermax tubing from 7105' to 8147' top of liner established up and down weight UW 77K, DW 56K. Trip through liner top with end of Halliburton TCP perforating guns, no drag observed., Continue tripping in the hole, drifting and picking up 4 1/2" Supermax tubing from 8147' to 9273, (champ packer going through liner hanger) set down 6K picked up and slacked off and was able to travel through liner hanger. Once champ packer was inside 7 5/8" casing we saw a 3K drag. Continue to run in the hole to 9382, for a total of 264 joints of Supermax tubing.,Rig down Weatherford tongs change out elevators from 4.5" YT to 4" bottle neck„Trip in hole to 9702 with XT39 from derrick while drifting same. The drift hung up in a tool joint tool, and had to break stand down to retrieve drift, appeared to be some scale in tool joint, replaced 2 9/16” drift with 2" OD drift to drift remainder of drill pipe. Bar for gun detonation is 1.75OD, continue to trip in hole to 9922',Kelly up @ 9922' break circulation line up on the choke and driller inadvertently closed blind rams instead of annular. Picked up and inspected joint of drill pipe and could see were it was slightly deformed, laid joint down and picked up another. Closed annular and pumped down drill pipe to close the fast fill valve, pressured up to 600 PSI with casing pressure tracking, pressured up to 700 PSI with casing pressure,tracking same, continued to pressure up to 1000 PSI casing continued to track with drill pipe. Halliburton TCP technician contacted his service supervisor and decision made to bleed off pressure and pressure up to 1500 PSI, at 1400 PSI casing stopped tracking with drill pipe. Bled pressure off drill pipe and 1380 PSI remained on casing, bled pressure off casing through choke and opened annular.,Continue to trip in hole from 9922' to 12600', getting closed end pipe displacement.,K-10RD2 wellhead pressures: 24" = 37 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 0 bbls. Daily metal recovered: 0 lbs Total: 552.2 lbs Daily Code 8: 0.0 Total: 68.0 11/25/2016 Continue to trip in hole with XT -39 drill pipe out of derrick to 12,943.,Made up TCP detonation bar dropping assembly and laid it down for use later. Pick up 15' pup joint and single joint of drill pipe, UW 126K, DW 76K, slack off to 12,978', put 2 rounds of right hand torque in pipe and worked it down, the packer set. picked up to 12,964' packer released. put an additional 2 rounds of right hand torque, picked up to 12,958', and set slips on the up stroke.,Rig up Pollard E -Line, run in hole with, GR and CCL to correlate, (Note: RA sub at 11,759'). Send logs into geologist, and discuss correlation, decision was made to move pipe up the hole 2.5'. Pull out of hole with wireline tools and rig down same while discussing Iogs.,Hold PJSM with all parties involved, load TCP detonation bar in bar dropping assembly and pick up same.,Pick pipe up 2.5' and set down to 56K to set packer,top shot at 11,922' and the bottom shot at 12,954'. UW 126K, DW 76K.,Drop bar, 4minutes - 48 seconds for gun detonated. Observed blow from outlet on drill pipe. Shut valve on pump in sub, picked up to 126K to relax packer elements for a couple of minutes. Pick up to 140K and pull champ packer free, the fluid in the annulus fell, closed the bag and circulated. Taking returns through choke manifold and poorboy degasser.,Pump FIW 6% KCL at 4 BPM, 165 PSI, pumped 72 BBLs away and had returns at the shakers. Shut down pump and shut in well while building 120 bbls 6% KCL,Begin pumping at 2 BPM rate and caught press at 19 bbls away, had returns at 23 bbls away. Loss rate to well is 40 BPH, begin mixing 6% KCL at 40 BPH while pumping. Initially pumping at 4 BPM rate and 277 PSI, at 430 BBLs away, started getting gun gas back at the shakers, continued pumping until gun gas had dissipated, pumped a total of 567 BBLs away, shut pump down and open annular preventer.,Continue pumping a total of 853 BBLs, and the well had cleaned up. Shut down and break down TCP detonation bar drop assembly and spacer pup joint.,Circulated at 2 BPM and establish a loss rate of 37 BPH. Shut down pump and kept hole full with trip tank, and established a static loss rate of 32 BPH.,Shut down and monitor well, conducted a PJSM for pulling out of hole and laying down XT39 drill pipe.,Trip out of hole with spent perforating guns, laying down XT39 dill pipe, from 12954' to 9386', ran 4 stands of XT39 from derrick and laid them down, while filling the hole with 1.5 times metal displacement every 10 joints.,Rig up Weatherford 4 1/2 power tongs, change elevators from 4" drill pipe to 4 1/2" YT, clean and clear rig floor and conducted a PJSM for tripping out of hole and racking back 4 1/2" tubing.,Trip out of hole with spent perforating guns, racking back 4 1/2" Supermax tubing from 9386' to 3500', filling the hole with 1.5 times metal displacement every 5 stands.,K- 10RD2 wellhead pressures: 24" = 37 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 243 bbls. Daily metal recovered: 0 lbs Total: 552.2 lbs Daily Code 8: 0.0 Total: 68.0 11/26/2016 Trip out of hole standing back 4 1/2" Si-^-rmax tubing from 3500' to 1683',Appeared that gas was ve^ring out of tbg while pumping the 1.5 pipe displacement down back side for hole fill. Crew inst; SV and shut annular preventer, open valves on tubing hoke to check pressures. There was no pressure on either side. It was determined that we ha„ pulled the Halliburton pressure vent valve above fluid leve, end when we filled the annulus it made the air and gun gas come up the drill pipe,With the guns at this depth the vent valve would have been at 639' this would indicate what our fluid level was.,Pump down drill pipe taking returns back through the choke manifold and poorboy degasser. Had returns at 47 BBLS away, pumped a total of 56 BBLs prior to shutting down. There was no gas seen, the annular preventer was opened and the FOSV was laid down.,Trip out of hole leaving one stand of drill pipe in the hole, continued to monitor well, fluid appeared to be 25' down with no gas breaking out.,Make up gun safety joint. and stage it outside of door, lay down Halliburton Fast -Fill valve, (4) Joints of 3.5" drill pipe, RA marker sub, Champ Packer, (2) Joints of 2.875" tubing, pressure vent sub, firing head, drop bar, firing head adaptor and safety spacer.,Have PJSM and lay down perforating guns. (Note: all shots fired.), Pickup and breakdown gun safety joint, rig down Weatherford tongs.,Clean and clear rig floor and beaver slide,Make up 4.5" test joint with IBOP, FOSV, and pump in sub, run test plug in hole with 2 joints of drill pipe hanging off bottom of test plug. Production shot fluid level in casing 167' from wellhead. annulus valve.,Perform BOP test, Test #1 annular on 4 1/2" pipe, dart, demco kill, CMV 7-14-15-16 250 PSI low and 2500 PSI high. Test #2 upper VBR on 4 1/2" pipe dart, demco kill, CMV 7-14-15-16 250 PSI low and 3500 PSI high. Test #3 upper VBR on 4 1/2" pipe, FOSV, demco/ kill, TD Hydraulic IBOP, CMV 4-5-6-11. Test #4 upper VBR on 4 1/2" pipe, FOSV, outside kill, TD manual IBOP, CMV 3-10-13.,Test #5 upper VBR on 4 1/2" pipe, FOSV, inside kill, CMV 2-9-12, fail/ pass due to leaking lock down screw energized same and retested good. Test #6 upper VBR on 4 1/2" pipe, FOSV, inside kill, CMV1-8. Test #7 upper VBR on 4 1/2" pipe, FOSV, inside kill, HCR choke. Test #8 upper VBR on 4 1/2" pipe, FOSV, inside kill, manual valve on choke line. Test #9 lower VBR on 4 1/2" pipe, FOSV.,Perform accumulator drawdown test. Starting pressures: Accumulator 2950 PSI, Annular 1500 PSI, Manifold 1500 PSI, drawdown pressure 1650 PSI, 200 PSI recovery 18 seconds, full recovery 2950 PSI 95 seconds, N2 bottle average 2525 PSI.,Test #10 blinds, inside kill, CMV 1-8-12. Test #11 manual choke pressured up to 1500 PSI and bled off. Test #12 hydraulic choke pressured up to 1500 PSI and bled off., Production, shoot fluid level in casing 964'. Rig down test equipment, blow down choke, break down valves, pull test plug, lay down pipe below test plug, break down test joint.,Clear floor and prepare to rig up Summit ESP.,K-10RD2 wellhead pressures: 24" = 37 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 389 bbls. Daily metal recovered: 0 lbs Total: 552.2 lbs Daily Code 8: 0.0 Total: 68.0,Witness of BOP test was waived by Jeff Jones 11-26-2016 @ 18:30 Hrs 11/27/2016 Pick and stage Summit tools and equipment, pump 40 bbls of 6% KCL, pick up centralizer anode, down hole pressure gauge, and motors, and service same. The hole cover was removed and a 2' x 2' section of rubber being used as a hole cover fell down the hole. It passed the motor, went through the wellhead and down the 9 5/8 casing.., Decision was made to lay down the ESP equipment and mobilize wire line to fish rubber. The platform fire alarm sounded and all personnel mustered in the galley, an all clear was sounded and all personnel returned to work or sleep if they were off tour.,Mobilized slickline tools and crew, unit arrived by boat from the Dolly Varden platform, unit along with tools and lubricator were rigged up.,Run #1; Run in hole with 6 3/4" wire grab tool to 160', appeared to be taking weight, pulled out of hole, no recovery. Run #2; Run in hole with 6 3/4" wire grab tool to 1145' WLM (Note: fluid level at 800'), pull out of hole, recovered a 5" piece of plastic tape.,Run #3; Run in hole with 6 3/4" wire line grab to top of liner at 8167' WLM, pull out of hole, recovered portion of test plug rubber, small 3" oring, and a piece of plastic tape.,Run #4; Run in hole 8.35" gauge ring with a junk basket to top of liner at 8157' WLM, pull out of hole and recovered a couple small pieces of rubber. Note: had to reduce running speeds due to flow path restrictions from tool clearances.,Run #5: Run in hole with 4 3/4" wire grab to 11 900'top of perforations, pull out of hole , recovered about 1/4 of the rubber lost to hole. Contacted town decision made to stop wire line operations and resume running ESP.,Rig down Pollard equipment and Iaydown lubricator, Prepare to pick up ESP, clean and clear rig floor, stage Summit equipment, conduct a PJSM with all personnel involved.,Pick up ESP motor section #1 with anode, down hole pressure gauge, and serviced motor, pick up motor section #2 and service same, make up flat pack and ported pressure discharge line to gauge, pick up seal assembly #,1 and seal assembly #2, and make up on motor section #2, hang motor lead sheave., Reposition motor lead sheave, run motor lead through same, connect pothead connector and check continuity all good, tested pot head connector, and found cut oring, replaced same. Service upper and lower seal assemblies and run in hole,Pick up and make up gas separator, intake assembly, pump assemblies and discharge head. Clean and clear floor of Summit equipment.,Rig up Weatherford tongs, check cable and motor continuity.,K-10RD2 wellhead pressures: 24" = 37 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 431 bbls. Daily metal recovered: 0 lbs Total: 552.2 lbs Daily Code 8: 0.0 Total: 68.0 11/28/2016 Have PJSM and ESP cable cut drill -Notice noise in draw works when running blocks up empty, trouble shoot same and found that driller had tried to run blocks up fast with the oil being cold, causing it to not shift properly. All lower gears were fine, 1/2 hr code 8 while trouble shooting.,Run in hole with ESP from 450' installing cannon clamps on every collar for the first 7 joints, then on every other joint there after, test cable for conductivity every 1,000', continue to run in hole to 2230'.,Continue run in hole with ESP on 4 1/2 Supermax out of the derrick from 2,230' to 5,020'. had issues with slips not holding, installed new dyes in at 3,000' while performing cable conductivity test, installing cannon clamps every other joint and testing cable conductivity every 1,000'.,Perform motor lead splice at 5020',Continue to run in hole with 4 1/2" ESP completion from 5020' to 6970', installing cannon clamps every other joint, and performing conductivity test every 1000',Continue to run in hole with 4 1/2" ESP completion from 6970' to 7655', made up 4 1/2" X -Nipple assembly, and made up 9 5/8" 32.3-47# ESP dual packer.,Check conductivity of motor lead and perform motor lead splice/ penetration at packer and connect all control lines, make up SSSV.,K-10RD2 wellhead pressures: 24" = 37 psi, 13 3/8" = 10 psi, 9 5/8" = 0 psi Fluid loss to well bore: 431 bbls. Daily metal recovered: 0 lbs Total: 552.2 lbs Daily Code 8: 0.5 Total: 68.5 11/29/2016 MU SSSV and tie in control line. Function test to 3500 psi, continue RIH w/ ESP on 4 1/2 tbg t/ 8030'.,PU and drift landing jt. MU hanger on bottom of landing jt and MU in string and orientate. Splice into penetrator line. Tie into hanger and test same. Run all 4 control lines through hanger and pressure up on SSSV to hold valve open. Also plugged in umbilical cord. Lower hanger and land out.,Run in LDS, and meg test cable. Drop bar and fill landing jt. Press up do landing jt to 3800 psi and hold for 15 min. Bleed do and repeat process. To ensure packer was set.,Start filling ann with 6% KCL. Had to fill and beed off air. Continue repeating process. Rig do both sheaves and the rest of the Summit equip. Also spotted Pollard unit and layed down the 5 extra stds out of the derrick while getting the ann full of fluid.,Attempt to pressure up on ann to 1500 psi to test pkr. Acted like air in system. Bled back and attempted several times to work air out and still didn't test.,Pressure up do the tbg again to 4500 psi for 15 min w/ 0 psi pressure drop.,Attempt to test 9 5/8" x 4 1/2" annulus 7 times. Each time pressure bled from 1700 to 1500 psi in +-7 minutes. 13 3/8 annulus remained at 4 psi. No visible leaks at surface. Consult with engineer/AOGCC and decision was made to proceed with operations., Pollard RIH and retrieve drop bar and plug. R/D Pollard. Pull and lay down landing joint. R/D Weatherford., Set BPV.,Nipple down choke and kill line. Remove beaver slide, bridge and support pedestal. Remove rig mats, spacer wood and clean rig floor. Remove mud manifold and lay down mouse hole.,Remove transmission hatch. Disconnect hydraulics to rotary table. Pull rotary table and set on rig floor. Clean out flow box and remove flow line. Stow flow box on top of off -driller side doghouse.,Make up lift slings and lift BOP's and set on dolly.,K-10RD2 wellhead pressures: 24" = 24 psi, 13 3/8" = 4 psi, 9 5/8" = 0 psi Fluid loss to well bore: 431 bbls. Daily metal recovered: 0 lbs Total: 552.2 lbs Daily Code 8: 0.5 Total: 68.5 11/30/2016 Secure BOPS to trolly and move out of th^ way. Get slings hooked to riser, break bolts on Grayloc clamp, and pull riser to rig floor. Remove 3" and 2" valves from wellhead room for production.,Clean u ger. Check continuity on cable. Good! Change out 3 LD 1 prep wellhead for tree. Install beaver slide back on rig. Attempt to pull VR plug on ann so we coed install another ann valve. Couldn't get the plug out. Prep Wee to lower to well room., Lower tree to wellhead room and land out. Install grayloc clamps and tighten same. Install SSV, Tree cap flange, Spacer spool, Choke, and 4" gate valve. Test void to 250 and 5000 psi for 15 min. Good test. Have welders get measurements for flow line. Pull BPV and install TWC.,Fill stack and test tree to 250 and 5000 psi. Had to bleed back and re -tighten two flanges. Swap over to the ann and pressure up to 1700 psi. Good test on packer. Swap to upper ann and still got a good solid test to 1600 psi using trapped pressure from the first test.,lnstall rotary transmission cover. Remove beaver slide, bridge and support pedestal.,Prep to skid rig. Disconnect miscellaneous cables. Service HPU for jacks. Remove Weatherford unit, drill line spool and misc. items from east side of sub. Secure/disconnect flow line at dresser sleeve. Remove mud line/standpipe in sub. Remove storm clamps, stairs and landings. Spot HPU for jacks. Welders fabricating flow line for tree to production header.,Skid rig over K-06RD. Welders fabricating flow line., Install seismic clamps, hoses, landings and stairs.,K-10RD2 wellhead pressures: 24" = 24 psi, 13 3/8" = 4 psi, 9 5/8" = 0 psi Fluid loss to well bore: 431 bbls. Daily metal recovered: 0 lbs Total: 552.2 lbs Daily Code 8: 0.5 Total: 68.5,This will be the final report on this AFE. Hilcorp Alaska, LLC Trading Bay King Salmon Plan: K-10RD2 50-733-20167 50-733-20167 Sperry Drilling Definitive Survey Report 20 December, 2016 HALLIBURTON Sperry Drilling Halliburton Definitive Survey Report Company: Hilcorp Alaska, LLC Local Co-ordinate Reference: Well K-10 Project: Trading Bay TVD Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 5) Site: King Salmon MD Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 5) Well: K-10 North Reference: True Wellbore: Plan: K-10RD2 Survey Calculation Method: Minimum Curvature Design: K-10RD2 Database: Sperry EDM - NORTH US + CANADA Project Trading Bay Map System: US State Plane 1927 (Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927 (NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Using geodetic scale factor Well K-10 Well Position +N/ -S 0.00 usft Northing: 2,511,791.32 usft Latitude: 60° 51' 55.850 N +E/ -W 0.00 usft Easting: 213,757.25 usft Longitude: 151' 36'21.236 W [Position Uncertainty 0.00 usft Wellhead Elevation: 0.00 usft Water Depth: 73.00 usft Wellbore Plan: K-10RD2 Magnetics Model Name Sample Date Declination Dip Angle Field Strength (nT) BGGM2016 10/7/2016 16.28 73.76 55,455 Design K-10RD2 Audit Notes: Version: 1.0 Phase: ACTUAL Tie On Depth: 8,440.00 Vertical Section: Depth From (TVD) +N/ -S +E/ -W Direction (usft) (usft) (usft) (°) 0.00 0.00 0.00 248.43 Survey Program Date 12/20/2016 1 From To (usft) (usft) Survey (Wellbore) Tool Name Description Survey Date 46.81 8,440.00 SDI Gyro (1) (K-10) NSG -CT _Drop Battery powered continuous drop gyro 11/18/2016 8,445.00 11,355.45 SDI Gyro (2) (Plan: K-10RD2) NSG -CT -Drop Battery powered continuous drop gyro 11/14/2016 11,383.38 13,199.88 MWD+SC+sag (3) (Plan: K-10RD2) MWD+SC+sag Fixed:v2:standard dec & axial correction + sag 11/18/2016 Survey Map Map Vertical MD Inc Azi TVD TVDSS +N/ -S +E/ -W Northing Easting DLS Section (usft) (I (I (usft) (usft) (usft) (usft) (ft) (ft) (°/100') (ft) 0.00 0.00 0.00 0.00 -122.00 0.00 0.00 2,511,791.32 213,757.25 0.00 0.00 46.81 0.15 165.22 46.81 -75.19 -0.06 0.02 2,511,791.26 213,757.27 0.32 0.01 77.57 0.09 359.42 77.57 -44.43 -0.07 0.03 2,511,791.25 213,757.28 0.77 0.00 106.98 0.07 52.25 106.98 -15.02 -0.04 0.04 2,511,791.28 213,757.29 0.25 -0.02 111.26 0.07 82.20 111.26 -10.74 -0.04 0.04 2,511,791.29 213,757.30 0.85 -0.03 137.44 0.10 30.55 137.44 15.44 -0.02 0.07 2,511,791.31 213,757.32 0.30 -0.06 139.68 0.08 59.02 139.68 17.68 -0.01 0.07 2,511,791.31 213,757.33 2.16 -0.06 172.20 0.08 318.20 172.20 50.20 0.01 0.08 2,511,791.34 213,757.33 0.38 -0.08 232.82 0.33 260.28 232.82 110.82 0.02 -0.12 2,511,791.34 213,757.13 0.49 0.11 293.15 1.40 277.04 293.14 171.14 0.08 -1.02 2,511,791.43 213,756.23 1.80 0.92 338.41 3.10 287.91 338.37 216.37 0.52 -2.74 2,511,791.91 213,754.53 3.86 2.35 353.48 3.54 290.09 353.41 231.41 0.81 -3.56 2,511,792.22 - 213,753.71 3.04 3.02 - 12/20/2016 5:35:48PM Page 2 COMPASS 5000.1 Build 81 Company: Project: Site: Well: Wellbore: Design: Survey Hilcorp Alaska, LLC Trading Bay King Salmon K-10 Plan: K-10RD2 K-10RD2 Halliburton Definitive Survey Report Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Database: Well K-10 K-10RD2 Plan @ 122.00usft (Kuukpik 5) K-10RD2 Plan @ 122.00usft (Kuukpik 5) True Minimum Curvature Sperry EDM - NORTH US + CANADA 12120/2016 5:35:48PM Page 3 COMPASS 5000.1 Build 81 Map Map Vertical MD Inc Aai TVD TVDSS +N/ -S +E1 -W Northing Easting DLS Section (usft) (°) (°) (usft) (usft) (usft) (usft) (ft) (ft) (°/100') (ft) 416.66 4.84 308.28 416.42 294.42 3.13 -7.49 2,511,794.64 213,749.85 2.92 5.81 478.87 5.99 317.11 478.35 356.35 7.13 -11.76 2,511,798.74 213,745.68 2.28 8.31 541.87 7.35 310.96 540.93 418.93 12.18 -17.04 2,511,803.92 213,740.52 2.44 11.36 604.14 9.34 301.48 602.54 480.54 17.43 -24.36 2,511,809.35 213,733.33 3.87 16.24 666.11 10.99 291.14 663.54 541.54 22.19 -34.16 2,511,814.34 213,723.65 3.96 23.60 729.61 12.04 277.03 725.77 603.77 25.18 -46.38 2,511,817.64 213,711.51 4.72 33.87 793.10 12.21 262.50 787.86 665.86 25.12 -59.61 2,511,817.89 213,698.28 4.80 46.20 855.18 13.29 251.08 848.42 726.42 21.95 -72.87 2,511,815.05 213,684.94 4.41 59.70 918.39 14.63 242.25 909.77 787.77 15.87 -86.81 2,511,809.32 213,670.86 3.98 74.89 980.06 16.57 240.74 969.16 847.16 7.95 -101.37 2,511,801.75 213,656.10 3.21 91.35 1,043.41 18.79 243.41 1,029.52 907.52 -1.03 -118.38 2,511,793.19 213,638.88 3.73 110.47 1,106.25 20.26 242.32 1,088.74 966.74 -10.62 -137.07 2,511,784.06 213,619.97 2.41 131.37 1,163.84 21.54 242.67 1,142.54 1,020.54 -20.10 -155.29 2,511,775.03 213,601.52 2.23 151.80 1,166.78 21.65 242.88 1,145.28 1,023.28 -20.60 -156.25 2,511,774.56 213,600.55 4.57 152.88 1,265.00 24.05 242.86 1,235.78 1,113.78 -37.99 -190.19 2,511,758.00 213,566.19 2.44 190.84 1,365.00 27.36 243.39 1,325.87 1,203.87 -57.58 -228.88 2,511,739.36 213,527.03 3.32 234.02 1,465.00 30.22 244.07 1,413.50 1,291.50 -78.89 -272.07 2,511,719.12 213,483.34 2.88 282.02 1,565.00 33.23 244.68 1,498.55 1,376.55 -101.61 -319.48 2,511,697.56 213,435.38 3.03 334.46 1,665.00 36.53 245.12 1,580.58 1,458.58 -125.86 -371.26 2,511,674.59 213,383.02 3.31 391.53 1,765.00 39.96 245.46 1,659.10 1,537.10 -151.73 -427.49 2,511,650.11 213,326.18 3.44 453.33 1,865.00 43.59 245.70 1,733.67 1,611.67 -179.26 -488.14 2,511,624.07 213,264.87 3.63 519.86 1,965.00 46.85 245.96 1,804.10 1,682.10 -208.32 -552.90 2,511,596.61 213,199.43 3.27 590.76 2,065.00 50.17 246.04 1,870.33 1,748.33 -238.78 -621.32 2,511,567.83 213,130.28 3.32 665.59 2,165.00 50.56 246.14 1,934.12 1,812.12 -269.99 -691.72 2,511,538.35 213,059.13 0.40 742.54 2,265.00 50.27 246.43 1,997.85 1,875.85 -300.99 -762.28 2,511,509.09 212,987.84 0.37 819.55 2,365.00 49.85 246.66 2,062.04 1,940.04 -331.50 -832.62 2,511,480.30 212,916.78 0.46 896.18 2,465.00 49.65 247.11 2,126.66 2,004.66 -361.47 -902.81 2,511,452.07 212,845.87 0.40 972.48 2,565.00 49.35 247.16 2,191.60 2,069.60 -391.01 -972.88 2,511,424.25 212,775.10 0.30 1,048.50 2,665.00 49.00 247.18 2,256.98 2,134.98 -420.37 -1,042.62 2,511,396.60 212,704.66 0.35 1,124.15 2,765.00 48.46 247.19 2,322.94 2,200.94 -449.52 -1,111.90 2,511,369.16 212,634.69 0.54 1,199.29 2,865.00 47.66 247.09 2,389.77 2,267.77 -478.41 -1,180.44 2,511,341.96 212,565.46 0.80 1,273.66 2,965.00 47.46 247.43 2,457.25 2,335.25 -506.94 -1,248.50 2,511,315.10 212,496.72 0.32 1,347.44 3,065.00 46.99 247.75 2,525.17 2,403.17 -534.93 -1,316.36 2,511,288.79 212,428.20 0.53 1,420.84 3,165.00 46.63 247.81 2,593.61 2,471.61 -562.50 -1,383.86 2,511,262.88 212,360.05 0.36 1,493.74 3,265.00 46.21 247.92 2,662.54 2,540.54 -589.79 -1,450.96 2,511,237.23 212,292.30 0.43 1,566.18 3,365.00 45.72 247.72 2,732.05 2,610.05 -616.93 -1,517.53 2,511,211.73 212,225.08 0.51 1,638.07 3,465.00 45.61 247.56 2,801.94 2,679.94 -644.14 -1,583.68 2,511,186.15 212,158.29 0.16 1,709.59 3,565.00 45.17 247.67 2,872.17 2,750.17 -671.25 -1,649.51 2,511,160.66 212,091.82 0.45 1,780.77 3,665.00 44.19 247.78 2,943.27 2,821.27 -697.91 -1,714.57 2,511,135.61 212,026.12 0.98 1,851.08 3,765.00 43.78 247.70 3,015.22 2,893.22 -724.21 -1,778.84 2,511,110.88 211,961.23 0.41 1,920.52 12120/2016 5:35:48PM Page 3 COMPASS 5000.1 Build 81 Company: Hilcorp Alaska, LLC Project: Trading Bay Site: King Salmon Well: K-10 Wellbore: Plan: K-10RD2 Design: K-10RD2 Survey Halliburton Definitive Survey Report Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Database: Well K-10 K-10RD2 Plan @ 122.00usft (Kuukpik 5) K-10RD2 Plan @ 122.00usft (Kuukpik 5) True Minimum Curvature Sperry EDM - NORTH US + CANADA 1212012016 5:35:48PM Page 4 COMPASS 5000.1 Build 81 Map Map Vertical MD Inc Azi TVD TVDSS +NIS +E/ -W Northing Easting DLS Section (usft) (°) (°) (usft) (usft) (usft) (usft) (ft) (ft) (°/100-) (ft) 3,865.00 43.57 248.04 3,087.55 2,965.55 -750.23 -1,842.81 2,511,086.44 211,896.64 0.32 1,989.57 3,965.00 43.33 248.16 3,160.15 3,038.15 -775.88 -1,906.62 2,511,062.36 211,832.22 0.25 2,058.34 4,065.00 43.24 248.18 3,232.94 3,110.94 -801.38 -1,970.27 2,511,038.43 211,767.97 0.09 2,126.90 4,165.00 43.46 248.27 3,305.66 3,183.66 -826.84 -2,034.01 2,511,014.53 211,703.62 0.23 2,195.55 4,265.00 43.32 248.29 3,378.33 3,256.33 -852.26 -2,097.83 2,510,990.68 211,639.20 0.14 2,264.25 4,365.00 43.28 248.24 3,451.11 3,329.11 -877.66 -2,161.54 2,510,966.85 211,574.89 0.05 2,332.83 4,465.00 43.30 248.26 3,523.90 3,401.90 -903.07 -2,225.23 2,510,943.01 211,510.60 0.02 2,401.40 4,565.00 43.06 248.58 3,596.82 3,474.82 -928.24 -2,288.86 2,510,919.41 211,446.37 0.32 2,469.82 4,665.00 42.83 249.01 3,670.02 3,548.02 -952.88 -2,352.38 2,510,896.33 211,382.27 0.37 2,537.95 4,765.00 43.06 248.86 3,743.22 3,621.22 -977.37 -2,415.95 2,510,873.40 211,318.11 0.25 2,606.08 4,865.00 43.02 249.06 3,816.31 3,694.31 -1,001.87 -2,479.65 2,510,850.47 211,253.83 0.14 2,674.33 4,965.00 43.04 249.45 3,889.41 3,767.41 -1,026.04 -2,543.47 2,510,827.87 211,189.45 0.27 2,742.56 5,065.00 42.47 249.69 3,962.83 3,840.83 -1,049.74 -2,607.08 2,510,805.73 211,125.27 0.59 2,810.43 5,165.00 42.86 250.49 4,036.36 3,914.36 -1,072.82 -2,670.80 2,510,784.22 211,061.01 0.67 2,878.17 5,265.00 43.67 250.82 4,109.18 3,987.18 -1,095.52 -2,735.47 2,510,763.11 210,995.80 0.64 2,946.66 5,365.00 44.03 251.05 4,181.30 4,059.30 -1,118.15 -2,800.95 2,510,742.09 210,929.79 0.39 3,015.87 5,465.00 43.99 251.49 4,253.22 4,131.22 -1,140.46 -2,866.75 2,510,721.40 210,863.47 0.31 3,085.26 5,565.00 43.76 251.70 4,325.31 4,203.31 -1,162.34 -2,932.51 2,510,701.13 210,797.19 0.27 3,154.46 5,665.00 44.56 252.74 4,397.05 4,275.05 -1,183.61 -2,998.85 2,510,681.50 210,730.35 1.08 3,223.97 5,765.00 44.66 253.60 4,468.24 4,346.24 -1,203.94 -3,066.07 2,510,662.82 210,662.65 0.61 3,293.96 5,865.00 46.12 253.70 4,538.46 4,416.46 -1,223.98 -3,134.38 2,510,644.45 210,593.87 1.46 3,364.85 5,965.00 46.21 254.11 4,607.72 4,485.72 -1,243.98 -3,203.68 2,510,626.16 210,524.10 0.31 3,436.66 6,065.00 45.36 254.69 4,677.46 4,555.46 -1,263.25 -3,272.71 2,510,608.58 210,454.62 0.95 3,507.94 6,165.00 47.36 255.07 4,746.47 4,624.47 -1,282.13 -3,342.57 2,510,591.42 210,384.32 2.02 3,579.85 6,265.00 45.69 255.05 4,815.27 4,693.27 -1,300.83 -3,412.69 2,510,574.44 210,313.77 1.67 3,651.92 6,365.00 47.69 255.34 4,883.86 4,761.86 -1,319.42 -3,483.03 2,510,557.58 210,242.99 2.01 3,724.18 6,465.00 48.77 255.11 4,950,47 4,828.47 -1,338.44 -3,555.15 2,510,540.33 210,170.43 1.09 3,798.24 6,565.00 49.58 255.00 5,015.85 4,893.85 -1,357.96 -3,628.26 2,510,522.61 210,096.86 0.81 3,873.40 6,665.00 49.81 255.03 5,080.53 4,958.53 -1,377.68 -3,701.92 2,510,504.70 210,022.74 0.23 3,949.16 6,765.00 52.89 255.23 5,142.98 5,020.98 -1,397.71 -3,777.40 2,510,486.52 209,946.79 3.08 4,026.71 6,865.00 52.90 255.69 5,203.31 5,081.31 -1,417.74 -3,854.60 2,510,468.39 209,869.13 0.37 4,105.87 6,965.00 53.51 256.20 5,263.20 5,141.20 -1,437.18 -3,932.28 2,510,450.85 209,791.00 0.73 4,185.25 7,065.00 53.94 256.81 5,322.37 5,200.37 -1,455.99 4,010.67 2,510,433.96 209,712.17 0.65 4,265.07 7,165.00 54.16 257.64 5,381.08 5,259.08 -1,473.89 -4,089.62 2,510,418.00 209,632.81 0.71 4,345.07 7,265.00 53.27 257.75 5,440.26 5,318.26 -1,491.07 -4,168.37 2,510,402.76 209,553.65 0.89 4,424.63 7,365.00 53.32 258.45 5,500.03 5,378.03 -1,507.60 -4,246.82 2,510,388.15 209,474.82 0.56 4,503.66 7,465.00 52.22 258.94 5,560.53 5,438.53 -1,523.21 -4,324.90 2,510,374.46 209,396.39 1.17 4,582.00 7,565.00 51.70 259.31 5,622.15 5,500.15 -1,538.07 -4,402.24 2,510,361.50 209,318.71 0.60 4,659.39 7,665.00 51.18 260.14 5,684.48 5,562.48 -1,552.02 -4,479.18 2,510,349.43 209,241.45 0.83 4,736.07 7,765.00 51.51 260.57 5,746.95 5,624.95 -1,565.11 -4,556.17 2,510,338.24 209,164.17 0.47 4,812.48 1212012016 5:35:48PM Page 4 COMPASS 5000.1 Build 81 Company: Hilcorp Alaska, LLC Project: Trading Bay Site: King Salmon Well: K-10 Wellbore: Plan: K-10RD2 Design: K-10RD2 Survey Halliburton Definitive Survey Report Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Database: Well K-10 K-10RD2 Plan @ 122.00usft (Kuukpik 5) K-10RD2 Plan @ 122.00usft (Kuukpik 5) True Minimum Curvature Sperry EDM - NORTH US + CANADA MD (usft) 7,865.00 7,965.00 8,065.00 8,165.00 8,265.00 8,365.00 Inc (°) 50.57 49.10 49.79 48.65 47.69 47.05 Azi (°) 261.22 261.47 262.10 262.36 263.98 263.80 TVD (usft) 5,809.82 5,874.32 5,939.34 6,004.65 6,071.35 6,139.07 TVDSS (usft) 5,687.82 5,752.32 5,817.34 5,882.65 5,949.35 6,017.07 +N/ -S (usft) -1,577.41 -1,588.92 -1,599.77 -1,610.01 -1,618.88 -1,626.71 +E1 -W (usft) -4,632.94 -4,708.49 -4,783.69 4,858.71 -4,932.69 -5,005.85 Map Northing (ft) 2,510,327.82 2,510,318.17 2,510,309.16 2,510,300.76 2,510,293.70 2,510,287.67 Map Easting (ft) 209,087.11 209,011.31 208,935.87 208,860.61 208,786.44 208,713.12 DLS (°1100') 1.07 1.48 0.84 1.16 1.54 0.65 Vertical Section (ft) 4,888.40 4,962.89 5,036.81 5,110.34 5,182.40 5,253.31 Lii✓ ,jh L. 8,465.00 47.99 263.61 6,206.61 6,084.61 -1,634.80 -5,079.15 2,510,281.38 208,639.64 0.95 5,324.45 8,565.00 45.26 263.64 6,275.28 6,153.28 -1,642.87 -5,151.38 2,510,275.08 208,567.23 2.73 5,394.59 8,665.00 41.72 260.50 6,347.82 6,225.82 -1,652.30 -5,219.53 2,510,267.32 208,498.87 4.15 5,461.43 8,765.00 38.54 259.67 6,424.27 6,302.27 -1,663.38 -5,283.01 2,510,257.79 208,435.14 3.22 5,524.54 8,865.00 36.71 259.30 6,503.47 6,381.47 -1,674.51 -5,343.03 2,510,248.13 208,374.86 1.84 5,584.45 8,965.00 33.97 260.04 6,585.04 6,463.04 -1,684.90 -5,399.93 2,510,239.14 208,317.73 2.77 5,641.18 9,065.00 31.78 261.31 6,669.02 6,547.02 -1,693.71 -5,453.48 2,510,231.64 208,263.98 2.30 5,694.23 9,165.00 28.74 259.03 6,755.39 6,633.39 -1,702.26 -5,503.13 2,510,224.31 208,214.13 3.25 5,743.54 9,265.00 25.61 256.56 6,844.34 6,722.34 -1,711.87 -5,547.77 2,510,215.80 208,169.28 3.33 5,788.58 9,365.00 23.67 255.53 6,935.23 6,813.23 -1,721.91 -5,588.23 2,510,206.76 208,128.58 1.99 5,829.90 9,465.00 23.07 255.68 7,027.03 6,905.03 -1,731.77 -5,626.65 2,510,197.84 208,089.93 0.60 5,869.25 9,565.00 22.46 256.34 7,119.24 6,997.24 -1,741.13 -5,664.19 2,510,189.40 208,052.17 0.66 5,907.61 9,665.00 23.48 255.76 7,211.31 7,089.31 -1,750.54 -5,702.07 2,510,180.92 208,014.08 1.04 5,946.29 9,765.00 23.23 256.01 7,303.11 7,181.11 -1,760.20 -5,740.51 2,510,172.20 207,975.41 0.27 5,985.60 9,865.00 24.01 255.61 7,394.73 7,272.73 -1,770.03 -5,779.36 2,510,163.33 207,936.34 0.80 6,025.33 9,965.00 22.88 256.63 7,486.48 7,364.48 -1,779.58 -5,817.98 2,510,154.72 207,897.49 1.20 6,064.76 10,065.00 24.08 256.74 7,578.20 7,456.20 -1,788.76 -5,856.75 2,510,146.50 207,858.51 1.20 6,104.19 10,165.00 24.34 257.42 7,669.40 7,547.40 -1,797.92 -5,896.72 2,510,138.31 207,818.33 0.38 6,144.73 10,265.00 23.98 257.42 7,760.64 7,638.64 -1,806.84 -5,936.66 2,510,130.38 207,778.18 0.36 6,185.16 10,365.00 24.98 256.51 7,851.65 7,729.65 -1,816.19 -5,977.03 2,510,122.02 207,737.59 1.07 6,226.13 10,465.00 24.73 256.53 7,942.39 7,820.39 -1,825.99 -6,017.90 2,510,113.22 207,696.49 0.25 6,267.75 10,565.00 25.16 256.12 8,033.06 7,911.06 -1,835.96 -6,058.88 2,510,104.26 207,655.28 0.46 6,309.52 10,665.00 24.60 255.95 8,123.78 8,001.78 -1,846.11 -6,099.71 2,510,095.11 207,614.22 0.56 6,351.22 10,765.00 24.21 256.27 8,214.84 8,092.84 -1,856.03 -6,139.82 2,510,086.17 207,573.88 0.41 6,392.17 10,865.00 24.97 256.54 8,305.77 8,183.77 -1,865.81 -6,180.27 2,510,077.39 207,533.20 0.77 6,433.38 10,965.00 24.90 255.50 8,396.45 8,274.45 -1,876.00 -6,221.18 2,510,068.21 207,492.06 0.44 6,475.17 11,065.00 26.04 252.97 8,486.73 8,364.73 -1,887.70 -6,262.55 2,510,057.52 207,450.41 1.58 6,517.94 11,165.00 28.35 249.34 8,575.68 8,453.68 -1,902.50 -6,305.76 2,510,043.78 207,406.85 2.84 6,563.57 11,265.00 29.95 245.82 8,663.02 8,541.02 -1,921.11 -6,350.75 2,510,026.28 207,361.41 2.34 6,612.26 11,355.45 31.69 241.83 8,740.70 8,618.70 -1,941.58 -6,392.30 2,510,006.84 207,319.38 2.97 6,658.42 11,383.38 31.97 241.07 8,764.43 8,642.43 -1,948.62 -6,405.24 2,510,000.12 207,306.27 1.75 6,673.04 11,442.87 33.10 239.35 8,814.58 8,692.58 -1,964.52 -6,433.00 2,509,984.90 207,278.13 2.45 6,704.70 11,506.66 35.02 237.54 8,867.43 8,745.43 -1,983.22 -6,463.43 2,509,966.95 207,247.25 3.40 6,739.88 11,570.16 36.19 234.98 8,919.06 8,797.06 -2,003.76 -6,494.16 2,509,947.17 207,216.03 2.98 6,776.01 1212012016 5:35:48PM Page 5 COMPASS 5000.1 Build 81 Halliburton Definitive Survey Report Company: Hilcorp Alaska, LLC Local Co-ordinate Reference: Well K-10 Project: Trading Bay ND Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 5) Site: King Salmon MD Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 5) Well: K-10 North Reference: True Wellbore: Plan: K-10RD2 Survey Calculation Method: Minimum Curvature Design: K-10RD2 Database: Sperry EDM - NORTH US + CANADA Survey Mitch Laird mnerxap_sNrdf,{`halhM.crtonran B Michael Galkk Date: to,/00'(%cw Checked By: SwVeYti,w�n Approved y: 12120/2016 5:35:48PM Page 6 COMPASS 5000.1 Build 81 Map Map Vertical MD Inc Azi ND TVDSS +N/ -S +El -W Northing Easting DLS Section (usft) (°) (°) (usft) (usft) (usft) (usft) (ft) (ft) (°/100') (ft) 11,632.57 38.77 232.98 8,968.59 8,846.59 -2,026.10 -6,524.86 2,509,925.58 207,184.79 4.57 6,812.77 11,697.15 40.03 231.22 9,018.49 8,896.49 -2,051.29 -6,557.20 2,509,901.20 207,151.85 2.61 6,852.10 11,760.13 39.80 230.35 9,066.80 8,944.80 -2,076.84 -6,588.51 2,509,876.42 207,119.92 0.96 6,890.61 11,822.85 39.96 230.06 9,114.93 8,992.93 -2,102.58 -6,619.41 2,509,851.45 207,088.40 0.39 6,928.81 11,886.52 40.03 229.68 9,163.70 9,041.70 -2,128.95 -6,650.69 2,509,825.85 207,056.48 0.40 6,967.60 11,948.07 40.72 230.82 9,210.59 9,088.59 -2,154.44 -6,681.35 2,509,801.11 207,025.21 1.64 7,005.48 12,012.26 43.24 230.51 9,258.31 9,136.31 -2,181.66 -6,714.55 2,509,774.72 206,991.35 3.94 7,046.37 12,073.91 47.22 231.40 9,301.72 9,179.72 -2,209.21 -6,748.54 2,509,748.00 206,956.69 6.54 7,088.11 12,136.84 50.16 230.34 9,343.26 9,221.26 -2,239.05 -6,785.20 2,509,719.08 206,919.32 4.84 7,133.17 12,198.90 53.00 228.29 9,381.82 9,259.82 -2,270.75 -6,822.05 2,509,688.28 206,881.70 5.26 7,179.10 12,263.62 55.75 225.99 9,419.52 9,297.52 -2,306.54 -6,860.59 2,509,653.45 206,842.29 5.14 7,228.10 12,326.91 58.28 224.93 9,453.97 9,331.97 -2,343.78 -6,898.43 2,509,617.15 206,803.56 4.24 7,276.97 12,393.26 61.26 224.23 9,487.37 9,365.37 -2,384.61 -6,938.65 2,509,577.31 206,762.35 4.58 7,329.39 12,456.94 63.10 223.08 9,517.09 9,395.09 -2,425.36 -6,977.53 2,509,537.53 206,722.49 3.30 7,380.53 12,520.39 66.12 223.07 9,544.29 9,422.29 -2,467.22 -7,016.67 2,509,496.64 206,682.33 4.76 7,432.32 12,583.10 68.28 223.69 9,568.59 9,446.59 -2,509.24 -7,056.38 2,509,455.61 206,641.61 3.56 7,484.69 12,646.35 70.87 224.26 9,590.67 9,468.67 -2,551.89 -7,097.53 2,509,413.98 206,599.42 4.18 7,538.64 12,709.61 72.21 223.99 9,610.70 9,488.70 -2,594.96 -7,139.31 2,509,371.94 206,556.61 2.16 7,593.33 12,772.71 73.79 223.71 9,629.14 9,507.14 -2,638.48 -7,181.11 2,509,329.46 206,513.75 2.54 7,648.20 12,834.38 74.57 224.22 9,645.96 9,523.96 -2,681.18 -7,222.30 2,509,287.78 206,471.53 1.49 7,702.21 12,898.17 75.39 224.23 9,662.49 9,540.49 -2,725.33 -7,265.27 2,509,244.69 206,427.49 1.29 7,758.41 12,962.10 76.22 223.88 9,678.16 9,556.16 -2,769.87 -7,308.37 2,509,201.22 206,383.32 1.40 7,814.86 13,025.48 77.86 223.44 9,692.38 9,570.38 -2,814.56 -7,351.01 2,509,157.60 206,339.60 2.67 7,870.94 13,088.70 78.82 223.99 9,705.16 9,583.16 -2,859.31 -7,393.79 2,509,113.91 206,295.73 1.74 7,927.19 13,143.46 79.75 223.86 9,715.34 9,593.34 -2,898.06 -7,431.12 2,509,076.08 206,257.46 1.71 7,976.14 13,199.88 80.32 223.58 9,725.10 9,603.10 -2,938.22 -7,469.52 2,509,036.87 206,218.09 1.12 8,026.63 13,233.00 80.32 223.58 9,730.67 9,608.67 -2,961.87 -7,492.03 2,509,013.78 206,195.01 0.00 8,056.25 Mitch Laird mnerxap_sNrdf,{`halhM.crtonran B Michael Galkk Date: to,/00'(%cw Checked By: SwVeYti,w�n Approved y: 12120/2016 5:35:48PM Page 6 COMPASS 5000.1 Build 81 Lease & Well No. County Hilcorp Energy Company CASING & CEMENTING REPORT MRF K-10RD2 Cook Inlet Offshore State AK TD 13,233.00 Length Measurements W/0 Threads RKB Date Run 14 -Nov -16 Supv. S Hauck/R Brumley Csg Wt. On Hook: Type Float Collar: Ray oilTools No. Hrs to Run: 12 Csg Wt. On Slips: Type of Shoe: Ray Oil Tools Casing Crew: Weaatherford Rotate Csg Yes X No Recip Csg X Yes No Ft. Min. 9.1 PPG Fluid Description: OBM Liner hanger Info (Make/Model): Baker, Flex -lock Liner Hanger HRDE ZXPN liner top Liner top Packer?: X Yes _ No Liner hanger test pressure: 2500 Floats Held X Yes _ No Centralizer Placement: CASING RECORD Casing (Or Liner) Detail Liner Shoe Depth: 13,184.00 PBTD: No. Jts. Delivered 134 No. As. Run 122 No. Jts. Returned Ftg. Delivered Ftg. Run 5,010.56 Fig. Returned Ftg. Cut Jt. Ftg. Balance RKB to BHF RKB to CHF RKB to THF Csg Wt. On Hook: Type Float Collar: Ray oilTools No. Hrs to Run: 12 Csg Wt. On Slips: Type of Shoe: Ray Oil Tools Casing Crew: Weaatherford Rotate Csg Yes X No Recip Csg X Yes No Ft. Min. 9.1 PPG Fluid Description: OBM Liner hanger Info (Make/Model): Baker, Flex -lock Liner Hanger HRDE ZXPN liner top Liner top Packer?: X Yes _ No Liner hanger test pressure: 2500 Floats Held X Yes _ No Centralizer Placement: CEMENTING REPORT Casing (Or Liner) Detail Setting Depths Jts. Component Size Wt. Grade THD Make Length Bottom Top Shoe 75/8 29.7 L80 Wedge 511 Tenaris 2.05 13,190.00 13,187.95 2 Casing 75/8 29.7 L80 511 79.73 13,187.95 13,108.22 Float Collar 75/8 29.7 L80 511 2.00 13,108.22 13,106.22 1 Casing 75/8 29.7 L80 511 39.87 13,106.22 13,066.35 Landing Collar 75/8 29.7 L80 511 1.67 13,066.35 13,064.68 1191 Casing 1 75/8 1 29.7 1 L80 1 511 1 14,891.21 FCP (psi): 2200 Pump used for 13,064.68 8,173.47 XO 75/8 X No Reciprocated? X L80 511 7.48 8,173.47 8,165.99 Liner Hanger Cement In Place At: 2305 Date: 11/15/2016 Estimated TOC: 10,000 19.05 8,165.99 8,146.94 Csg Wt. On Hook: Type Float Collar: Ray oilTools No. Hrs to Run: 12 Csg Wt. On Slips: Type of Shoe: Ray Oil Tools Casing Crew: Weaatherford Rotate Csg Yes X No Recip Csg X Yes No Ft. Min. 9.1 PPG Fluid Description: OBM Liner hanger Info (Make/Model): Baker, Flex -lock Liner Hanger HRDE ZXPN liner top Liner top Packer?: X Yes _ No Liner hanger test pressure: 2500 Floats Held X Yes _ No Centralizer Placement: Calculated Cmt Vol @ 0% excess: 42.7 Total Volume cmt Pumped: 61 Cmt returned to surface: 0 Calculated cement left in wellbore: OH volume Calculated: OH volume actual: Actual % Washout: WELLHEAD Make OCT Type Unihead Serial No. Size 13.63 W. P. 5000 Test head to PSIG MIN OK Remarks: www.weliez.net WellEz Information Management LLC ver 102716bf CEMENTING REPORT Shoe @ 13190 FC @ 13,106.00 Top of Liner 8145 Preflush (Spacer) Type: Density (ppg) Volume pumped (BBLs) Lead Slurry Type: G Sacks: 281 Yield: 1.32 Density (ppg) 15.3 Volume pumped (BBLs) 61 1 Mixing / Pumping Rate (bpm): 3.4 Tail Slurry 04 G u Type: �L Sacks: Yield: Density (ppg) Volume pumped (BBLs) Mixing / Pumping Rate (bpm): rn r Post Flush (Spacer) rc LL Type: Density (ppg) Rate (bpm): Volume: Displacement: Type: OBM Density (ppg) 9.1 Rate (bpm): 5 Volume (actual / calculated): 313.3/314.8 FCP (psi): 2200 Pump used for disp: Rig Bump Plug? X Yes No Bump press 2800 Casing Rotated? Yes X No Reciprocated? X Yes _ No % Returns during job 100 Cement returns to surface? Yes X No Spacer returns? _ Yes X No Vol to Surf: 0 Cement In Place At: 2305 Date: 11/15/2016 Estimated TOC: 10,000 Method Used To Determine TOC: Volume _ Post Job Calculations: Calculated Cmt Vol @ 0% excess: 42.7 Total Volume cmt Pumped: 61 Cmt returned to surface: 0 Calculated cement left in wellbore: OH volume Calculated: OH volume actual: Actual % Washout: WELLHEAD Make OCT Type Unihead Serial No. Size 13.63 W. P. 5000 Test head to PSIG MIN OK Remarks: www.weliez.net WellEz Information Management LLC ver 102716bf K-10RD2 Days vs Depth o 500 K-10RD2 Actual 1000 K-10RD2 Plan 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 s CL 6500 v -a 7000 a H 7500 m a 2 8000 8500 9000 9500 10000 10500 11000 11500 12000 12500 13000 13500 14000 0 10 20 30 40 50 60 Days 12/30/2016 11:26 AM K-10RD2 MW vs Depth 0 K-10RD2 Plan 1000 _ —K-10RD2 Actual 2000 - --- 3000 4000 5000 $_ 6000 r a a� v 7000 d N f0 �'r 8000 J K 9000 10000 11000 12000 13000 14000 8.0 9.0 10.0 11.0 12.0 13.0 14.0 Mud Density (ppg) L)ebra Oudean AK_GeoTech lfvlc vrp A69-ka. l.i.G - UEC 2 7 201E DATE: 12/27/2016 To: AOGCC Makana Bender 333 W. 7th Ave. Ste# 100 Anchorage, AK 99501 ' 0 99 Hilcorp Alaska, ULC 27 81, 0 3800 Centerpoint Drive, Suite 100 7 8 4 1 Anchorage, AK 99503 12/8/2016 1:23 PM Tele: 907 777-8337 Final Well Report Fax: 907 777-8510 DATA LOGGED E-mail: doudean@hilcorp.com M, KBENDER CANRIG FINAL WELL DATA CD 11/21/2016 5:55 PM File folder Daily Reports 12/8/20161:23 PM .File folder DML Data 12/8/2016 1:23 PM File folder Final Well Report 12/8/20161:23 Phi File folder LAS Data 12/8/20161:23 PM File folder t Log PDFs 12/8/2016 1:23 PM File folder Log TIFFs 12/8/20161:23 PM File folder Show Reports 12/8/20161:23 Phl File folder CANRIG FINAL WELL DATA PRINTS Sin Formation Log MD / TVD tin Formation Log MD / TVD LWD Combo Log MD / TVD Gas Ration Log MD / TVD Drilling Dynamics MD / TVD HALLIBURTON FINAL WELL DATA CD Prints: _Log Viewers 11/21/2016 5:55 PM File folder CGM 11/21/2016 5:55 PM File folder Definitive Survey 11/21/2016 5:55 PM File folder EMF 11/21/2016 5:55 PM File folder LAS 11/21/2016 5:55 PM file folder PDF 11/21/2016 5:55 PM File folder TIFF 11/21/2016 5:55 PM File folder ROP DGR EWR-Phase4 ALD CTN MD DGR EWR-Phase 4 ALD CTN TVD Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received Bw: _ I— I Date: Itdrurp %6%ka. LI.( DATE 11/21/2016 R (&- 099 abra Oudean Hilcorp Alaska, _ _. GeoTech II 3800 Centerpoint Drive, Suite 100 (�1 3 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: doudean@hilcorp.com To: Alaska Oil & Gas Conservation Commission Meredith Guhl, Petroleum Geology Assistant 333 W. 7th Ave. Ste# 100 Anchorage, AK 99501 Transmitted herewith are cuttings from K-10RD2 WELL Please SAMPLE INTERVAL K-10RD2 8445'-9510' 9510' -10590'- 510'-10590'10590'-11790'11790'-12200'12200'-12600' 10590' -11790'- 11790' -12200'- 12200' -12600'. 12600'-12970' 2970'-13233'- 12970'-13233'- Please include current contact information if different from above. AOGCC Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 THE STATE °fA LASKA 1-1 --- GOVERNOR BILL WALKER Monty Myers Drilling Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov Re: McArthur River Field, Hemlock and Middle Kenai G Oil Pools, TBU K-1 ORD2 Hilcorp Alaska, LLC Permit to Drill Number: 216-099 Surface Location: 727' FSL, 141' FEL, SEC. 17, T9N, R13W, SM, AK Bottomhole Location: 2224' FNL, 2401' FEL, SEC. 19, T9N, RUE, SM, AK Dear Mr. Myers: Enclosed is the approved application for permit to re -drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or an AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Cathy . Foerster Chair DATED this ?J) day of August, 2016. STATE OF ALASKA AL, ._.�A OIL AND GAS CONSERVATION COMMIS _.ON PERMIT TO DRILL 20 AAC 25.005 RECEIVED AUG 17 2016 AOGCC 1 a. Type of Work: 1h. Proposed Well Class Exploratory -Gas ❑ Service - WAG ❑ S@rvice - 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 2], Single Well ❑ 11. Well Name and Number: Hilcorp Alaska, LLC . Bond No. 022035244 V( K-10RD2 . 3. Address: 6. Proposed Depth: 12. Field/Pool(s): 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503 + MD: 13,200' TVD: 9,663' McArthur River Field Hemlock Oil Pool AWILQv 4a. Location of Well (Governmental Section): Surface: 727' FSL, 141' FEL, Sec 17, T9N, R13W, SM, AK 7. Property Designation (Leas umber): ( ) ADL 017594 (1 I L) ADL 018777 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 1360' FNL, 1500' FEL, Sec 19, T9N, R13W, SM, AK N/A 9/20/2016 9. Acres in Property: 14. Distance to Nearest Property: Total Depth: 2224' FNL, 2401' FEL, Sec 19, T9N, R13W, SM, AK 7018 • 1,777' 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above MSL (ft): 122' • 15. Distance to Nearest Well Open Surface: x-213757 y- 2511791 Zone -4 GL Elevation above MSL (ft): 73' , to Same Pool: 505' K-10RD 16. Deviated wells: Kickoff depth: 8400 feet 17. Maximum Potential Pressures in psig (see 20 AAC 25.035) q r r c Maximum Hole Angle: 77 degrees . Downhole: ,11;9'-jc,13 Surface: 2437 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 8-1/2" 7" 29# L-80 DWC/C 5,000' 8,200' 5,970' 13,200' 9,663' 398 sx 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): 12,840' 9,695' N/A 12,575' 9,473' N/A Casing Length Size Cement Volume MD TVD Conductor/Structural 384' 24" Driven 384' 384' Surface 4,998' 13-3/8" 2255 sx 4,998' 3,877' Intermediate 8,898' 9-5/8" 700 sx 8,898' 6,439' Production Liner 4,308' 7" 960 sx 12,840' 9,695' Perforation Depth MD (ft): 11,916' - 12,545' Perforation Depth TVD (ft): 8,374'- 8,572' 20. Attachments: Property Plat ❑✓ BOP Sketch Q Drilling Program Q Time v. Depth Plot ❑✓ Shallow Hazard Analysis❑ Diverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program ❑✓ 20 AAC 25.050 requirements0 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Contact Monty Myers Email mmyers@hilcorp.com Printed Name Monty Myers Title Drilling Engineer Signature Phone 777-8431 Date `T3 i O 1 Commission Use Only Permit to Drill Number: - z% API Number: 50- �33 ^ - pJ Permit Approval Date: ' '^ I W See cover letter for other requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane gas hydrates, or gas contained in shales: Other: 3 I-3 f Samples req'd: Yes ❑ No [� Mud log req'd: Yes ❑ No 70- 0 C k � F� H2S measures: Yes V No❑ Directional svy req'd: Yes VNo M70-10 Li / A Spacing exception req'd: Yes E]No [f Inclination -only svy req'd: Yes ❑ No ',X, Z" a C-) Post initial injection MIT req'd: Yes ❑ No ❑ '// Approved by: Y� APPROVED BY COMMISSIONER THE COMMISSION Date: �— YK6 114x4)'- Z 8l�- l Submit Form and Form 10-401 (Revised 11/2015) T r p r r IvNfAtonths from the date of approval (20 AAC 25 05(9)) Attachments in Duplicate 8/17/2016 Monty Myers Drilling Engineer Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue Anchorage, Alaska 99501 Re: K-10RD2 Dear Commissioner, Hilcorp Alaska, LLC P.O. Box 244027 Anchorage, AK 99524-4027 Tel 907 777 8431 Email mmyers@hilcorp.com RECEIVED AUG 17 2016 AOGCC K-10RD2 is an oil production well planned to be re -drilled in a South-westerly direction from the existing K-10RD utilizing the existing casing program down to 8400' MD / 6101' TVD. At 8400' MD the parent wellbore will be sidetracked and new wellbore drilled penetrating several Hemlock targetsf A 4800'x 8-1/2" open hole section is planned. A 7" 29# L-80 DWC/C prod liner will be run, cemented, and perforated based on data obtained while drilling the interval. () The well will be completed with a 3-1/2" ESP completion.. Drilling operations are expected to commence approximately September 20th, 2016. If you have any questions, please don't hesitate to contact myself at 777-8431 or Paul Mazzolini at 777-8369. Sincerely, Monty Myers Drilling Engineer Hilcorp Alaska, LLC Page 1 of 1 Hilcorp Alaska, LLC K-IORD2 Drilling Program McArthur River ro d by: M691P "MY Revision 0 August 15, 2016 K-10RD2 Drilling Procedure Rev 0 I lile-p-%4-ka, LLC Contents 1.0 Well Summary.................................................................................................................................2 2.0 Management of Change Information............................................................................................3 3.0 Tubular Program............................................................................................................................4 4.0 Drill Pipe Information....................................................................................................................4 Anticipated Drilling Hazards.......................................................................................................35 5.0 Internal Reporting Requirements..................................................................................................5 Rig Layout......................................................................................................................................36 6.0 Planned Wellbore Schematic..........................................................................................................6 FIT Procedure...............................................................................................................................37 7.0 Drilling Summary............................................................................................................................7 Choke Manifold Schematic..........................................................................................................38 8.0 Mandatory Regulatory Compliance / Notifications.....................................................................8 Fluid Flow Diagrams.....................................................................................................................39 9.0 R/U and Preparatory Work.........................................................................................................10 Offset MW vs. Depth TVD...........................................................................................................42 10.0 BOP N/U and Test.........................................................................................................................11 Casing Design Information...........................................................................................................43 11.0 Mud Program and Density Selection Criteria............................................................................12 8-1/2" Hole Section MASP............................................................................................................44 12.0 Whipstock Running Procedure....................................................................................................13 Plot (NAD 27) (Governmental Sections).....................................................................................45 13.0 Whipstock Setting Procedure.......................................................................................................16 Slot Diagram (As Built) (NAD 27)...............................................................................................46 14.0 Drill 8-1/2" Hole Section...............................................................................................................19 Directional Program(wp04a).......................................................................................................48 15.0 Run 7" Production Liner..............................................................................................................22 16.0 Cement 7" Production Liner........................................................................................................25 17.0 Wellbore Clean Up & Displacement............................................................................................29 18.0 Run Completion Assembly...........................................................................................................30 19.0 RD...................................................................................................................................................30 20.0 BOP Schematic..............................................................................................................................31 21.0 Wellhead Schematic......................................................................................................................32 22.0 Days vs Depth................................................................................................................................33 23.0 Geo-Prog........................................................................................................................................J4 24.0 Anticipated Drilling Hazards.......................................................................................................35 25.0 Rig Layout......................................................................................................................................36 26.0 FIT Procedure...............................................................................................................................37 27.0 Choke Manifold Schematic..........................................................................................................38 28.0 Fluid Flow Diagrams.....................................................................................................................39 29.0 Offset MW vs. Depth TVD...........................................................................................................42 30.0 Casing Design Information...........................................................................................................43 31.0 8-1/2" Hole Section MASP............................................................................................................44 32.0 Plot (NAD 27) (Governmental Sections).....................................................................................45 33.0 Slot Diagram (As Built) (NAD 27)...............................................................................................46 34.0 Directional Program(wp04a).......................................................................................................48 K-lORD2 Drilling Procedure Rev 0 Ildcorp Ahi..U. LLC. 1.0 Well Summary Well K- l ORD2 Pad & Old Well Designation Sidetrack of existing well K-1ORD PTD#174-047) Planned Completion Type 7" 29# L-80 Liner, 3-1/2" Tubing w/ ESP Target Reservoir(s) Hemlock Producer H1 -H3 Planned Well TD, MD / TVD 13200' MD / 9663' TVD PBTD, MD / TVD 13100' MD / 9641' TVD Surface Location (Governmental) 727' FSL, 141' FEL, Sec 17, T9N, R13W, SM, AK Surface Location (NAD 27) X=213757.25, Y=2511791.32 Surface Location (NAD 83) Top of Productive Horizon (Governmental) 1360' FNL, 1500' FEL, Sec 19, T9N, ROW, SM, AK TPH Location (NAD 27) X=207070.87, Y=2509879.47 TPH Location (NAD 83) BHL (Governmental) 2224' FNL, 2401' FEL, Sec 19, T9N, R13W, SM, AK BHL (NAD 27) X=206151.01, Y=2509038.58 BHL (NAD 83) AFE Number 1612388D AFE Drilling Days AFE Drilling Amount $4.2 MM Work String 4-1/2" 16.6# X-95 XH (From Kuuk ik) RKB — AMSL 122' MSL to ML 73' BOP Equipment 13-5/8" 5M H dril "GK" Annular BOP 13-5/8" 5M Cameron Type U Double Ram 13-5/8" 5M Cameron Type U Single Ram Page 2 Revision 0 July, 2016 Ilih--p klw ka. LLC 2.0 Management of Change Information Sec K-10RD2 Drilling Procedure Rev 0 Hilcorp Alaska, LLC Hcorp Eeagy omp.oyWC-PM Changes to Approved Permit to Drill Date: August 11, 2016 Subject, Changes to Approved Permit to Drill for K-10RD2 File #: K-10RD2 Drilling Program Any modifications to K-10RD2 Drilling Program will be documented and approved below. Changes to an approved APD will be communicated and approved by the AOGCC prior to continuing forward with work. Approval: Drilling Manager Date Prepared: Monty M Myers 8.11.2016 Drilling Engineer Date Page 3 Revision 0 July, 2016 3.0 Tubular Program K-10RD2 Drilling Procedure Rev 0 Ole Section OD in Wt(#/ft) Cou 1 OD ID in Drift (in) Grade Conn Top Bottom 8-1/2" 7" 29 7.656 6.184 6.059 L-80 DWC/C 8200 13200 4.0 Drill Pipe Information Section D ID (in) (in) TJ ID (in) TJ OD (in) Wt (#/ft) Grade Conn Burst (psi) Collapse Tension (psi) (k -lbs) 8-1/2" 4-1/2" 3.826 3" 6-1/4" 16.6 X-95 NC46(XH) 10,268 8,853 396 All casing will be new, PSL 1 (100% mill inspected, 10% inspection upon delivery to TSA in Fairbanks). Page 4 Revision 0 July, 2016 5.0 Internal Reporting Requirements K-10RD2 Drilling Procedure Rev 0 5.1 Fill out daily drilling report and cost report on Wellez. i. Report covers operations from 6am to 6am ii. Click on one of the tabs at the top to save data entered. If you click on one of the tabs to the left of the data entry area — this will not save the data entered, and will navigate to another data entry tab. iii. Ensure time entry adds up to 24 hours total. iv. Try to capture any out of scope work as NPT. This helps later on when we pull end of well reports. 5.2 Afternoon Updates v. Submit a short operations update each work day to pmazzolini@hilcorp.com, lkeller@a hilcorp.com, mmyers@hilcorp.com and cdinger@hilcorp.com 5.3 5am Weekend Update vi. Submit a short operations update each weekend and holiday to whoever is assigned weekend or vacation duty. Details will be sent before each weekend or holiday. vii. Copy pmazzolini@hilcorp.com, lkeller@ahilcorp.com and mmyersAhilcorp.com 5.4 EHS Incident Reporting viii. 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. Mark Tornai: O: (907) 283-1372 C: (907) 748-3299 c. Thad Eby: O: (907) 777-8317 C: (907) 602-5178 2. Spills: Julieanna Orczewska: 0:907-777-8444 C:907-715-7060 ix. Notify Drlg Manager 1. Paul Mazzolini: O: 907-777-8369 C: 907-317-1275 x. Submit Hilcorp Incident report to contacts above within 24 hrs 5.5 Casing Tally xi. Send final "As -Run" Casing tally to mmyers@hilcorp.com and cdinger@hilcorp.com 5.6 Casing and Cmt report xii. Send casing and cement report for each string of casing to mmyers@hilcorp.com and cdingerAhilcorp.com Page 5 Revision 0 July, 2016 6.0 Planned Wellbore Schematic RKB to Sea Level (MSL) = 122' KB 35' K-10RD2 Drilling Procedure Rev 0 McArthur River Held Well: K-10RD2 API #: 50-733-XXXXX-02 PTD: XXX -XXX TD = 13.200' PBTD = 13.100' Max Hole An& = 77' TOC Depth CASING DETAIL Depth (MD) Depth {TVD} SIZE WT GRADE CONN TOP BTM. 24" 186 X-56 Weld 0 384' 13-3/8" 61 K-55 BTC 0 1511' DV Tool 1511" 1514' 13-3/8" 61 K-55 BTC 1514' 2500' 13-3/8" 68 K-55 BTC 2500- 4998" 9-5/8" 47 Pilo BTC 0 8898' 7" 29 L-80 DWC C 1 8200' 1 13200' TD = 13.200' PBTD = 13.100' Max Hole An& = 77' CEMENT DETAIL TOC Depth JEWELRY DETAIL Depth (MD) Depth {TVD} ID Item ±8,200' ±5,970' 6.059" SDD Baker Liner Hanger ±8,400' ±6,101' - KOP ±8,200'- 13,200' ±9,663' 6.059" 7" 29# L-80 DWC/C CEMENT DETAIL TOC Depth TOC Depth Volume Item (MD) (TVD) t10,000' ±7,459' 95 bbls 15.3 Py& Class G cement w/ % bbl cemnet LCM Page 6 Revision 0 July, 2016 K-10RD2 Drilling Procedure Rev 0 Ililcorp W.A.. LIA: 7.0 Drilling Summary K-1 ORD2 is an oil production well planned to be re -drilled in a South-westerly direction from the existing K-1 ORD utilizing the existing casing program down to 8400' MD / 6101' TVD. At 8400' MD the parent wellbore will be sidetracked and new wellbore drilled penetrating several Hemlock targets. A 4800' x 8-1/2" open hole section is planned. A 7" 29# L-80 DWC/C prod liner will be run, cemented, and perforated based on data obtained while drilling the interval. The well will be completed with a 3-1/2" ESP completion. Drilling operations are expected to commence approximately September 20th, 2016. All waste & mud generated during drilling and completion operations will be hauled to the Kenai Gas Field G&I facility for disposal / beneficial reuse depending on test results. A separate sundry notice will be submitted to cover P&A and wellbore preparation for the sidetrack and for running the completion assembly General sequence of operations pertaining to this approved drilling procedure: 1. Kuukpik Rig 5 will be over slot 27 (K-IORD) to de -complete and P&A well under separate sundry. 2. DP should be stood back in derrick 3. PU whipstock, and mills and TIH to CIBP 4. Orient whipstock and set at 45 deg left of ] 5. Mill 8-1/2" window and 20' of new formation at 8400'. 6. POOH and LD mills. PU directional BHA and TIH to window. 7. Swap well to 9.2 ppg oil based drilling mud PTI) 8. Perform FIT to 12.5 ppg EMW 9. Drill 8-1/2" production hole from 8420' to 13200' MD, performing short trips as needed 10. Perform short trip and condition mud. POOH 11. LD Directional Tools. RIH w 7" liner. Set liner and cement. Circ wellbore clean. 12. POOH, laying down DP and liner running tools, 13. PU 7" casing scraper assembly and TIH to landing collar. 14. Circ casing clean. POOH laying down DP. 15. Run 3-1/2" completion. (Covered under separate sundry) 16. Land hanger and test. 17. ND BOPE, NU tree and test void Page 7 Revision 0 July, 2016 K-10RD2 Drilling Procedure Rev 0 Ililvorp Alaska. LLC 8.0 Mandatory Regulatory Compliance / Notifications Regulatory Compliance Ensure that our drilling and completion operations comply with the below AOGCC regulations. If additional clarity or guidance is required on how to comply with a specific regulation, do not hesitate to contact the Anchorage Drilling Team. • BOPs shall be tested at (2) week intervals during the drilling of K-IORD2. Ensure to provide AOGCC 48 hrs notice prior to testing BOPs. • The initial test of BOP equipment will be to 250/3500 psi & subsequent tests of the BOP equipment will be to 250/3500 psi for 5/5 min (annular to 50% rated WP, 2500 psi on the high test for initial and subsequent tests). Confirm that these test pressures match those specified on the APD. • If the BOP is used to .shut in on the well in a well control situation, we must test ALL BOP components utilized for well control prior to the next trip into the wellbore. This pressure test will be charted same as the 14 day BOP test. • All AOGCC regulations within 20 AAC 25.033 "Primary well control for drilling: drilling fluid program and drilling fluid system" • All AOGCC regulations within 20 AAC 25.035 "Secondary well control for primary drilling and completion: blowout prevention equipment and diverter requirements" • Ensure AOGCC approved drilling permit is posted on the rig floor and in Co Man office. Variance Requests: o Hilcorp would like to request a variance to regulation 20 AAC 25.035(e)(4)(F)(i) which states - "the outlets must be at least two inches in nominal diameter, except that for rotary drilling rig operations, if the operation has a maximum potential surface pressure of greater than 3,000 psi, the nominal diameter of the choke outlets must be at least three inches". o The calculated MASP for this wellbore when completely evacuated to gas is 3218 psi. However, for Cook Inlet Operations, we assume that the well can never flow 100% gas, due to the water in the reservoir. We reduce this MASP calculation to 2145 psi which assumes that only 2/3 of the wellbore is evacuated to gas and 1/3 to 9.2 ppg reservoir fluid. o Hilcorp would like to request to have 2-1/16" outlets on the choke line and kill line due to thi assumption Page 8 Revision 0 July, 2016 Ililcorp .AlaAa. LLC Summary of BOP Equipment and Test Requirements K-10RD2 Drilling Procedure Rev 0 Hole Section Equipment Test Pressure(psi) • 13-5/8" Shaffer 5M annular • 13-5/8" 5M Shaffer SL Double gate Initial Test: 250/3500 • Blind ram in bottom cavity (Annular 2500 psi) 8-1/2" • Mud cross • 13-5/8" 5M Shaffer SL single gate Subsequent Tests: • 3-1/16" 5M Choke Manifold 250/3500 • Standpipe, floor valves, etc (Annular 2500 psi) • Primary closing unit: Control Technology Accumulator, 3000psi, 5 station, 170 gallon reservoir, 4 nitrogen backups and 12 bladder bottles. • Primary closing hydraulic pressure is provided by an electrically driven triplex pump. Secondary back-up is an air pump, and tertiary emergency pressure is provided by bottled nitrogen. Required AOGCC Notifications: • Well control event (BOPS utilized to shut in the well to control influx of formation fluids). • 48 hours notice prior to spud. • 48 hours notice prior to testing BOPS. • 48 hours notice prior to casing running & cement operations. • Any other notifications required in APD. Additional requirements may be stipulated on APD. Regulatory Contact Information: AOGCC Jim Regg / AOGCC Inspector / (0): 907-793-1236 / Email: jim.regg@alaska.gov Guy Schwartz / Petroleum Engineer / (0): 907-793-1226 / (C): 907-301-4533 / Email: guy. schwartzgalaska.gov Victoria Loepp / Petroleum Engineer / (0): 907-793-1247 / Email: victoria.loepp@alaska.gov Primary Contact for Opportunity to witness: AOGCC.Inspectors@alaska.gov Test/Inspection notification standardization format: hftp://doa.alaska.gov/ogc/fonns/TestWitnessNotif.html Notification / Emergency Phone: 907-793-1236 (During normal Business Hours) Notification / Emergency Phone: 907-659-2714 (Outside normal Business Hours) Page 9 Revision 0 July, 2016 K-10RD2 Drilling Procedure Rev 0 Ililcorp Alaska.. LLC 9.0 R/U and Preparatory Work 9.1 Separate sundries will be submitted that will include the following: • Pull tubing • P&A lower perfs with a cement plug • Set CIBP 9.2 Mix mud for 8-1/2" hole section. 9.3 Verify 4.5" liners installed in mud pump #1 and 5.5" liners installed in pump #2. • Ellis Williams WH -1000 Pumps are rated at 3500 psi (100%) with 4.5" liners and can deliver 171 gpm at 86 spm. • TSM 1000 Pumps are rated at 3500 psi (100%) with 5.5" liners and can deliver 229 gpm at 86 spm. • Ideal pump rate for drilling will be 400 gpm. Both pumps running at 86 spm should achieve this. Pump #1 Ellis Williams WH100010" Stroke 96% Efficiency Max psi 3500 psi Liner Size bbls/stroke 4.5 0.0472 Pump#2 TSM 10009" Stroke 96% Efficiency Max psi 3500 psi Liner Size bbls/stroke 5.5 0.0635 Strokes/minute bpm gpm Strokes/minute bpm gpm 20 0.94 40 20 1.27 53 40 1.89 79 40 2.54 107 60 2.83 119 60 3.81 160 86 4.06 171 86 5.46 229 100 4.72 198 100 6.35 267 120 5.67 238 120 7.62 320 140 6.61 278 150 7.08 297 Page 10 Revision 0 July, 2016 K-10RD2 Drilling Procedure Rev 0 Ilihrorp ilaska. LLC 10.0 BOP N/U and Test 10.1 * BOPE was NU and tested on prior decompletion sundry. We will test BOPE on 7 day cycle until the window is milled, at that point we will switch to the 14 day test cycle. Continue on to step 11. 10.2 N/U 13-5/8" x 5M BOP as follows (top down): • 13-5/8" x 5M Shaffer annular BOP. • 13-5/8" Shaffer Type "SL" Double ram. (2-7/8" X 5-1/2" VBR in top cavity, blind ram in btm cavity) • 13-5/8" mud cross • 13-5/8" Shaffer Type "SL" single ram. (2-7/8" X 5-1/2" VBR) • N/U pitcher nipple, install flowline. • Install (2) manual valves on kill side of mud cross. Manual valve used as inside or "master valve". • Install (1) manual valve on choke side of mud cross. Install an HCR outside of the manual valve. 10.3 Run BOP test assy, land out test plug (if not installed previously). • Test BOP to 250/3500 psi for 5/5 min. Test annular to 250/2500 psi for 5/5 min. • Ensure to leave "A" section side outlet valves open during BOP testing so pressure does not build up beneath the test plug. Confirm the correct valves are opened!!! • Test VBRs on 4-1/2" test joint. • Ensure gas monitors are calibrated and tested in conjunction w/ BOPE. 10.4 R/D BOP test assy. 10.5 Continue mixing mud for 8-1/2" hole section. 10.6 Set wearbushing in wellhead. Ensure ID of wearbushing > 7" Page 11 Revision 0 July, 2016 11.0 Mud Program and Density Selection Criteria 11.1 8-1/2" Production hole mud program summary: K-IORD2 Drilling Procedure Rev 0 Primary weighting material to be used for the hole section will be barite to minimize solids. We will have enough barite on location to weight up the active system 1 ppg above highest anticipated MW in the event of a well control situation. Canrig PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller's console, Co Man office, Toolpusher office, and mud loggers office. System Type: 9.2 ppg 80/20 Enviromul MOBM Properties: �,r-- MD Mud Weight Viscosity PV YP HTHP WPS ES EZ MUL NT (PPg) GELTONE V 6-10 ppb Lime 7 ppb DURATONE HT 2 ppb 8,400 — 13,200' 9.2-9.5 1 50-80 25-35 15-22 <5 250-270K >580 System Formulation: 80/20 Enviromul MOBM Product Concentration LVT 0.662 bbl Water .172 bbl INVERMUL NT 4 ppb EZ MUL NT 4 ppb GELTONE V 6-10 ppb Lime 7 ppb DURATONE HT 2 ppb Calcium Chloride 21 ppb BAROID 41 9.2 ppg (as needed) BARACARB 5 3-5 ppb BARABLOK 2 ppb BAROTROLPLUS 4 ppb 11.2 Program mud weights are generated by reviewing data from producing & shut in offset wells, estimated BHP's from formations capable of producing fluids or gas and formations which could require mud weights for hole stabilization. 11.3 A guiding philosophy will be that it is less risky to weight up a lower weight mud than be overbalanced and have the challenge to mitigate lost circulation while drilling ahead. Page 12 Revision 0 July, 2016 K-10RD2 Drilling Procedure Rev 0 (file -1) Alaska,1AX 12.0 Whipstock Running Procedure Section 12.1 through 12.5 is covered under decompletion sundry, drilling proceed to 12.6 12.1 M/U window milling assembly and TIH w/ 4-1/2" DP out of derrick. • Use a 8-1/2" taper mill and an 8-1/2" string mill above to ensure whipstock assy will pass freely. • Ensure BHA components have been inspected previously. • Caliper and drift all BHA components before running them in the hole. • Drift DP prior to RIH. • Lightly wash and ream any tight spots noted. 12.2 TIH to CIBP (8400' MD). Note that this was a wireline measurement so actual depth tagged may vary slightly. Keep up with the # of joints picked up so we know where we are. 12.3 Pressure test casing to 2500 psi / 30 min. Chart record casing test & keep track of the amount of fluid pumped. Stage up to 2500 psi in 500 psi increments. 12.4 CBU & circ at least (1) hi -vis sweep to remove any debris created by the clean out run. Anything left in the wellbore could affect the setting of the Whipstock. 12.5 TOH. 12.6 Makeup mills on a joint of HWDP. 12.7 RIH & set in slips. 12.8 Make up float sub, install float. 12.9 Leave assembly hanging in the elevators, and stand back on floor. 12.10 Bring Whipstock to rig floor on the pipe skate. Do not slam into bottom of Whipstock with pipe skate. 12.11 Pickup Whipstock per Baker rep using the Baker Whipstock handling system using air hoist. Allow assy to hang while Baker Rep inspects and removes shear screws as needed and any safety screws. Note: Anchor should be pinned with 6 shear screws initially. Shear screws are rated for 6,630 lbs each. REMOVE 3 screws for a set down shear of 6,630 x 3 =19,890 lbs. Note: Attach mills to Whipstock with (1) 35k mill shear bolt. 12.12 If needed, open BOP Blinds. Page 13 Revision 0 July, 2016 K-10RD2 Drilling Procedure Rev 0 nikx,rp Alaska, LH: 12.13 Run the Whipstock in the hole, install safety clamp as per Baker Rep, and install hole cover wrap. 12.14 Release pick up system at this point, Make up mills. 12.15 With the top drive, pick the assembly and position the starting mill to align with the hole in the slide. The Baker Rep will instruct the driller when the slot is lined up, the shear bolt then can be made up by the Baker Rep. 12.16 The assembly can now be picked up to ensure that the shear bolt is tight. 12.17 Remove the handling system. 12.18 Slowly run in the hole as per Baker Rep. Run extremely slow through the BOP & wear bushing. 12.19 Run in hole at 1 '/2 to 2 minutes per stand. 12.20 Fill every 30 stands or as needed, do not rotate or work the string unnecessarily. 12.21 Call for Baker Rep. 15 — 10 stands before getting to bottom. 12.22 Orient at least 30' — 45' above the CIBP. Page 14 Revision 0 July, 2016 Ililrorp Alaska, 1.1.1: K-10RD2 Drilling Procedure Rev 0 Window Master G2 Whipstock F'•• ER NK With Torque Master Bottom Trip Anchor BACiF1E5 9.625 53.5# Non Special Drift Casing 8.500 0 6.375 —► 40.6 8.250 10 4- 8.500 _♦ ♦_ 17.08 18.54 3.41 8.357 0 IF � 1.9 1.13 Whipstock OD: 8.000 Length: 18.54 Face Angle: 1.9 Face Length: 17.08 Retrieval BTA OD: 8.357 Length: 3.41 Overall length Length: 1 44' WELL INFORMATION CUSTOMER FIELD 8.000 LEASE WELL NO. I NOTE: DIM ENSIGNS AR BASED ON TECH UNIT DATA, ACTUAL DIM ENSIGNS M AY VARY SHEAR BOLT 25,000 35,000 45,000 55,000 65,000 75,000 Page 15 Revision 0 July, 2016 Baker Oil Tools Upper Watermelon Mill OD: 8.500 6.25 Length: 6.25 Flex Joint OD: 6.375 Length: 9.00 9.00 Lower Watermelon Mill OD: 8.375 Length: 5.66 Window Mill OD: 8.500 5.66 Length: 1 1.13 1.13 Whipstock OD: 8.000 Length: 18.54 Face Angle: 1.9 Face Length: 17.08 Retrieval BTA OD: 8.357 Length: 3.41 Overall length Length: 1 44' WELL INFORMATION CUSTOMER FIELD 8.000 LEASE WELL NO. I NOTE: DIM ENSIGNS AR BASED ON TECH UNIT DATA, ACTUAL DIM ENSIGNS M AY VARY SHEAR BOLT 25,000 35,000 45,000 55,000 65,000 75,000 Page 15 Revision 0 July, 2016 Ililrorp Alaska.. LLC 13.0 Whipstock Setting Procedure 13.1 13.2 13.3 K-10RD2 Drilling Procedure Rev 0 With the bottom of the Whipstock 30 — 45' above the CIBP, measure and record P/U and S/O weights. We will orient Whipstock face using highside MWD. Orient Whipstock to desired direction by turning DP in 1/4 round increments. P/U and S/O on DP to work all torque out (Being careful not to set BTA). Whipstock Orientation Diagram: 30 L HS 60 L HS Desired orientation of the Whipstock face is 45 degrees left of high side. Hole Angle at window interval (6000' MD) is 29 deg. The wellbore trajectory is planned to kick off at 262 degrees azimuth. Once Whipstock is in desired orientation, slack off and tag CIBP to set Bottom Trip Anchor. 13.4 Set down 12-15K on anchor to trip, P/U 5-7K maximum overpull to verify anchor is set. The window mill can then be sheared off by slacking off weight on the Whipstock shear bolt. (25k shear value). 13.5 P/U 5-10' above top of Whipstock. 13.6 Displace to 9.2 ppg 70/30 Enviromul MOBM. 13.7 Record P/U, S/O weights, and free rotation. Slack off to top of whipstock and with light weight and low torque. Mill window. Utilize 4 ditch magnets on the surface to catch metal cuttings. 13.8 Install catch trays in shaker underflow chute to help catch iron. 13.9 Keep iron in separate bbls. Record weight of iron recovered on ditch magnets. Page 16 Revision 0 July, 2016 K-10RD2 Drilling Procedure Rev 0 Ililrurp Alw-ka. HA: 13.10 Estimated metal cuttings volume from cutting window: Wieght of Cuttings For Milled Casing Exit O.D. Of Casing (in) 9.625 I.D. Of Casing (in) 8.535 Whipstock Face Length (Ft) 16.00 Percent of Casing Removed (%) * 38 Milled Area (In^12) 5.908 Volume of Cuttings (in ^3) 1134.272 Density of Casing (ib.lin"3) ** 0.283 Weight of Cutting Generated (lbs) 321.0 ' Calculated Average of Casing Removed Based on Drift Mills (38%) ** Density of Steel = .283 13.11 Drill approx. 20' rat hole to accommodate the drilling assembly. Ream window as needed to assure there is little or no drag. After reaming, shut off pumps and rotary (if hole conditions allow) and pass through window checking for drag. 13.12 Circulate Bottoms Up until MW in = MW out. 3.13 Conduct FIT to 12.5 ppg EMW. • (12.5 — 9.2) * 0.052 * 6101' tvd = 1047 psi ! 13.14 Kick Tolerance • (12.5-9.2) * (6101/9663) = 2.08 Note: Of set f e1d test data predicts frac gradients at the window to be between 12 ppg and 15 ppg. A 12.5 ppg FIT results in a 2.08 ppg kick tolerance while drilling the interval with a 9.2 ppg fluid density. 13.15 Slug pipe and POOH. Gauge Mills for wear. 13.16 Should a second run be required pick up the following BHA. Page 17 Revision 0 July, 2016 Back Up Mills K-10RD2 Drilling Procedure Rev 0 Connection Length O.D. WINDOW MILL 4 Yz REG -P X MILL 2.25 8.5 NEW LOWER WATERMELON MILL 4'/2 REG -P X 4'/ REG -B 5.5 8.5 FLEX JOINT 4'/ REG -P X 4 Yz REG -B 9.0 6.375 STRING MILL 4 Yz REG -P X 4 Y2 REG -B 5.5 8.5 FLOAT SUB 4 Yz" IF -13 X 4'/" REG -B 3.0 6.375 30 'ts-HWDP 4'/z" XH-B X 4 Y2" REG -P 900' 6.5 CONNECTIONS ON TUBULARS ARE SUBJECT TO CHANGE. BHA'S SHOW SPECIFIC CONNECTIONS AS AN EXAMPLE ONLY.! Page 18 Revision 0 July, 2016 ff Ilile-p Alaska, LLC 14.0 Drill 8-1/2" Hole Section 14.1 P/U 8-1/2" directional drilling assy. 14.2 Ensure BHA Components have been inspected previously. K-IORD2 Drilling Procedure Rev 0 14.3 Drift & caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. 14.4 Ensure TF offset is measured accurately and entered correctly into the MWD software. 14.5 Confirm that the bit is dressed with a TFA of 0.51 - 0.61 sqin. Have DD run hydraulics models to ensure optimum TFA. We want to pump at 300-375gpm. 14.6 Motor AKO should be set at 1.2 deg. Must keep up with 5 deg/100 DLS in the build section of the wellbore. 14.7 Primary bit will be the Varel 8-1/2" VM613P PDC bit. Ensure to have a back up bit available on location. COMPONENTDATA AM # 1 DescrhWon SeriM HDBS - PDC Number .0 (in) 8.400 10 (in) 2.500 Gauge (in) 8.500 WeIght (n" 172.13 TOP Connectlon P 4.1/2' REG Length (tt) 1.20 Curnulotive Length (ft) 1.20 2 7' SperryDrill Lobe 718 - 7.5 stg 7.000 4.952 95.69 B 4-ir2" IF 29.48 30.68 Stabilizer 8.375 3 Non Mag Float Sub 6.750 2.750 101.71 B 4-1=T IF 3.00 33.68 4 Integral Blade 6.750 2.750 8.375 101.71 B 4-112' IF 3.60 37.28 5 6 314" DM Collar 6.750 3.125 103.40 B 4-1,2" IF 9.20 46.48 6 6 314" DGR Collar 6.750 1.920 97.80 B 4-112" IF 4.55 51.04 7 6 314' EWR-P4 Collar 6.750 2.000 104.30 B 4-112" IF 12.10 63.14 8 Inline Stabilizer (ILS) 6.750 1.920 8.375 112.09 B 4 -tat" IF 320 66.34 9 6 314" PWD 6.750 1.905 96.30 B 4-1.2" IF 4.44 70.78 10 6 314" HCIM Collar 6.750 1.920 101.70 B 4-112" IF 4.97 75.74 11 6 3i4" TM - HOC (Pulser) 6.900 3.250 103.60 B 4-1:2" IF 15.50 91.24 12 6-314' Non Mag Flex Drill Collar 6.750 2.813 100.77 B 4-1,2' IF 30.00 121.24 13 6-3/4" Non Mag Flex Drill Collar 6.750 2.813 10037 B 4-1Z IF 30.00 151.24 14 64/4" Non Mag Flex Drill Collar 6.750 2.813 100.77 30.00 181.24 15 6 Joint 5' HW DP 5.000 3.000 49.30 180.00 361.24 16 6-114' Weatherford Hydraulic Jar 6.250 2.250 91.01 30.00 391.24 17 14 Joints 5' HWDP r 5.000 3.000 49.30 420.00 811.24 I Total; Page 19 Revision 0 July, 2016 Ililrurp.kla.ka, UC K-10RD2 Drilling Procedure Rev 0 I, ' Tool 0: T9283 Navigator:. Assembly: A091411 IARC Code: M433 ` s' t� t PRODUCT SPECIFICATIONS \/ Cutter Size: 13 mm �� Cutter Back Up: 13mm PDC & Replaceable Shock Studs f• Total Cutter Count: 76 ` Y+� Face Cutter Count: 58 Y jl Connection: 41/2" API Regular i -•� / ` Nozzle 1 Oty/Type: 6 - Series 55 r ( Nozzle 2 City/Type: f Junk Slot Area: 14.3in2 (92.3cml) Gage Pad Length: 2 1/2" (64mm) Make Up Length: 11.4" (288.8mm) Shank Diameter: 5.8" (147.3mm) OPERATING PARAMETERS' Rotary Speed: For all rotary and motor applications Flowrate Min -Max: 250 - 750GPM (0.95 - 2.84m3/min) Max Weight On Bit: 42000lbs (18683daN) e Makeup Torque: 12000-16000Ft-Lbs. (16270 - 21693Nm) f �S -D,,; atsng para - :-. srrcwr,. are tyM�'a# 10, tt.e Cit type •_ .,��' Faa recommenf az ;_-a "put si;*,Ac apphcatxu contact your . Yarel tntsinataonat repraiariahve. Navigator Series Bits - Varel's six step design i manufacturing process utilizes GeoScience interpreted logs. proprietary design software SPOT. 3D modeling programs. CFD, and specialized manufacturing techniques to produce the best possible bit for the application. Navigator bits are engineered to a specific Directional profile for a given application. Navigator bits possess the key design elements affecting bit steerability and directional behavior helping you achieve your drilling objectives. Bit Features P - Partial PowerCutters "" provide extra cutter density on the shoulder reducing excessive wear or cutting structure damage when drilling interbedded formations. Shock Studs - Shock studs limit drill bit vibration and increase stability allowing smooth cutting action increasing cutter life and overall bit performance. Updriil Cutters - PDC cutters strategically placed to help reduce hole problems when up drilling or back reaming. Premium Gage - The premium gage consists of thermally stable polycrystalline diamond and pdc (polycrystalline diamond compact) cutters; designed to insure that correct hole diameter is maintained. VAR Page 20 Revision 0 July, 2016 K-11ORD2 Drilling Procedure Rev 0 Ililrorp klaska, LLC 14.8 TIH to window. Shallow test MWD on trip in. 14.9 TIH through window, ensure Halliburton MWD service rep on rig floor during this operation. • Do not rotate string while bit is across face of Whipstock. 14.10 Drill 8-1/2" hole to 13200' MD using motor assembly. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Utilize Inlet experience to drill through coal seams efficiently. Coal seam log will be provided by Hilcorp Geo team, try to avoid sliding through coal seams. Work through coal seams once drilled. • Keep swab and surge pressures low when tripping. • See attached mud program for hole cleaning and LCM strategies. • Ensure solids control equipment functioning properly and utilized to keep LGS to a minimum without excessive dilution. • Adjust MW as necessary to maintain hole stability. • Ensure mud engineer set up to perform HTHP fluid loss. • Maintain API fluid loss < 6. • Take MWD surveys every stand drilled. • Minimize backreaming when working tight hole 14.11 Hilcorp Geologists will follow mud log closely to determine exact TD. 14.12 At TD pump a sweep and a marker to be used as a fluid caliper to determine annulus volume for cement calculations. CBU, and pull a wiper trip back to the window. 14.13 TOH with drilling assembly, handle BHA as appropriate. Page 21 Revision 0 July, 2016 K-lORD2 Drilling Procedure Rev 0 11H.- rp Alaska. LII: 15.0 Run 7" Production Liner 15.1 R/U Weatherford 7" casing running equipment. • Ensure 7" DWC/C x 4-1/2" XH crossover on rig floor and M/U to FOSV. • R/U fill up line to fill casing while running. • Ensure all casing has been drifted and tally verified prior to running. • Be sure to count the total # of joints before running. • Keep hole covered while R/U casing tools. • Record OD's, ID's, lengths, S/N's of all components w/ vendor & model info. 15.2 P/U shoe joint, visually verify no debris inside joint. 15.3 Continue M/U & thread locking shoe track assy consisting of - (1) f(1) Shoe joint w/ shoe bucked on & threadlocked (coupling also thread locked). • (1) Baker locked joint. • (1) Joint with float collar bucked on pin end & threadlocked (coupling also thread locked). • (1) Joint with landing collar bucked up. • Rigid or Solid body centralizers will be pre-installed on shoe joint, FC joint, and LC joint. • Install centralizers, one per joint, and leave centralizers free floating so that they can slide up and down the joint. • Ensure proper operation of float shoe & FC. 15.4 Continue running 7" production liner • Fill casing while running using fill up line on rig floor. • Use "API Modified" thread compound. Dope pin end only w/ paint brush. • Install solid body centralizers on every other joint to window. Leave the centralizers free floating. • Utilize a collar clamp until weight is sufficient to keep slips set properly. 7" DWC/C M/U toraues Casing OD Minimum Maximum Yield Torque 7" 19,200 ft -lbs 22,100 ft -lbs 25,000 ft -lbs Page 22 Revision 0 July, 2016 Technical Specifications Connection Type: Size(O.D.): DWC/C Casing 7 in 2012 API Spec 5CT Coupling O D. Material L-80 Grade 80.000 Minimum Yield Strength (psi) 95.000 Minimum Ultimate Strength (psi) Pipe Dimensions 7.000 Nominal Pipe Body O.D. (in) 6.184 Nominal Pipe Body I.D.(in) 0.408 Nominal Wall Thickness (in) 29.00 Nominal Weight (lbs/ft) 28.75 Plain End Weight (lbslft) 8.449 Nominal Pipe Body Area (sq in) Pipe Body Performance Properties 676,000 Minimum Pipe Body Yield Strength (lbs) 7,030 Minimum Collapse Pressure (psi) 8.160 Minimum Internal Yield Pressure (psi) 7,500 Hydrostatic Test Pressure (psi) K-lORD2 Drilling Procedure Rev 0 Weight (Wall): Grade: 29.00 Ib/ft (0.408 in) L-80 "%AM USA Connection Dimensions 7.875 Connection O.D. (in) 6.184 Connection I.D. (in) 6.125 Connection Drift Diameter (in) 4.50 Make-up Loss (in) 8.449 Critical Area (sq in) 100.0 Joint Efficiency (%) K-lORD2 Drilling Procedure Rev 0 Weight (Wall): Grade: 29.00 Ib/ft (0.408 in) L-80 "%AM USA Appoximated Field End Torque Values 19.200 Minimum Final Torque (ft -lbs) 22,100 Maximum Final Torque (ft -lbs) 25,000 Connection Yield Torque (ft -lbs) VAM USA 4424 W Sam Houston Pkwy. Suite 150 Houston, TX 77041 Phone: 7131579-3200 Fax: 713-479-3234 E-rnait VAMUSAsalesQyam usa.com Page 23 Revision 0 July, 2016 Connection Performance Properties 676.000 Joint Strength (lbs) 16,650 Reference String Length (ft) 1.4 Design Factor 718.000 API Joint Strength (lbs) 338,000 Compression Rating (lbs) 7.030 API Collapse Pressure Rating (psi) 81160 API Internal Pressure Resistance (psi) 26.2 Maximum Uniaxial Bend Rating [degrees/100 ft] Appoximated Field End Torque Values 19.200 Minimum Final Torque (ft -lbs) 22,100 Maximum Final Torque (ft -lbs) 25,000 Connection Yield Torque (ft -lbs) VAM USA 4424 W Sam Houston Pkwy. Suite 150 Houston, TX 77041 Phone: 7131579-3200 Fax: 713-479-3234 E-rnait VAMUSAsalesQyam usa.com Page 23 Revision 0 July, 2016 K-10RD2 Drilling Procedure Rev 0 Ilile—I) Al 4a, HA: 15.7 Ensure to run enough liner to provide for approx 200' overlap inside 9-5/8" casing. Ensure hanger/pkr will not be set in a 9-5/8" connection. 15.8 Before picking up Baker SDD liner hanger / packer assy, count the # of joints on the pipe deck to make sure it coincides with the pipe tally. 15.9 M/U Baker SDD liner top packer. Fill liner tieback sleeve with "Pal mix", ensure mixture is thin enough to travel past the HRD tool and down to the packoff. Wait 30 min for mixture to set up. 15.10 RIH one stand and circulate a minimum of one liner volume. Note weight of liner. 15.11 RIH w/ liner on DP no faster than 1 min / stand. Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 15.12 M/U top drive and fill pipe while lowering string every 10 stands. 15.13 Set slowly in and pull slowly out of slips. 15.14 Circulate 1-1/2 drill pipe and liner volume at 9-5/8" window prior to going into open hole. Stage pumps up slowly and monitor for losses. Do not exceed 60% of the nominal liner hanger setting pressure. 15.15 Obtain up and down weights of the liner before entering open hole. Record rotating torque at 10, 20, & 30 rpm. 15.16 Continue to fill the string every 10 joints while running liner in open hole. Do not stop to fill casing. 15.17 P/U the cmt stand and tag bottom with the liner shoe. P/U 2' off bottom. Note slack -off and pick-up weights. Record rotating torque values at 10, 20, & 30 rpm. 15.18 Stage pump rates up slowly to circulating rate without exceeding 60% of the liner hanger setting pressure. Circ and condition mud with the liner on bottom. Reduce the low end rheology of the drilling fluid by adding water and thinners. 15.19 Reciprocate & rotate string if hole conditions allow. Circ until hole and mud is in good condition for cementing. Page 24 Revision 0 July, 2016 K-lORD2 Drilling Procedure Rev 0 Ih1corp Alaska. LIA: 16.0 Cement 7" Production Liner • Cement will be mixed using batch mixer to ensure consistent density 16.1 Hold a pre job safety meeting over the upcoming cmt operations. 16.2 Attempt to reciprocate the casing during cmt operations until hole gets sticky. 16.3 Pump 15 bbls 12.5 ppg MUDPUSH Il spacer. 16.4 Test surface cmt lines to 4500 psi. 16.5 Mix and pump 95 bbls of 15.3 ppg class "G" cmt per below recipe with 0.5 lb/bbl of Cemnet or equivalent loss circulation fiber. Ensure cmt is pumped at designed weight. Job is designed to pump 25% OH excess but if fluid caliper dictates otherwise we may increase excess volumes. Cement volume is designed to bring cement up to a minimum of 500' above hemlock in annulus of 7" casing and 8-1/2" open hole. Est TOC 10000' TMD. 16.6 Displacement fluid will be drilling mud. —341 bbls of displacement fluid Cement Calculations 8-1/2" OH x 7" Liner: (13200' — 10000') x 0.02259 x 1.25 = 90.4 bbls Shoe Track: 120' x 0.03715 = 4.5 bbls Total Volume (bbls): 90.4 + 4.5 = 94.9 bbls Total Volume (113): 94.9 bbls x 5.615 ft3/bbl = 533 ft3 Total Volume (sx): 533 ft3 / 1.34 ft3/sk = (398 sx Page 25 Revision 0 July, 2016 C { K-IORD2 Drilling Procedure Rev 0 11ilcorp:Va4a, LI.f Slurry Information: System Easy BLOK Density 15.3 lb/gal Yield 1.34 ft3/sk Mixed Water 5.879 gal/sk Mixed Fluid 5.879 gal/sk Expected Thickening 70 Bc at 05:00 hr:mn API Fluid Loss <25 mL in 30.0 min at 155degF / 1000 psi Additives Code Description Concentration G D046 D202 D400 D154 Cement Anti Foam Dispersant Gas Control Agent Extender 94 lb/sk 0.2% BWOC 1.5% BWOC 0.8% BWOC 8.0% BWOC 16.7 Drop DP dart and displace with drilling mud. 16.8 Pump cement at max rate of 8 bbl/min. Reduce pump rate to 3 bpm prior to latching DP dart into liner wiper plug. Note plug departure from liner hanger running tool and resume pumping at full displacement rate. Displacement volume can be re -zeroed at this point 16.9 If elevated displacement pressures are encountered, position liner at setting depth and cease reciprocation. Monitor returns & pressure closely while circulating. Notify Drilling Foreman immediately of any changes. Reduce pump rate as required to avoid packoff. 16.10 Bump the plug and pressure up to up as required by Baker procedure to set the liner hanger (15% above nominal setting pressure. Hold pressure for 3-5 minutes. 16.11 Slack off total liner weight plus 30k to confirm hanger is set. 16.12 Do not overdisplace by more than %2 shoe track (-1 bbls). Shoe track volume is 1.8 bbls. 16.13 Pressure up to 4200 psi to release the running tool (HRD-E) from the liner Page 26 Revision 0 July, 2016 K-10RD2 Drilling Procedure Rev 0 110corp ;kla..ka. LLC. 16.14 Bleed pressure to zero to check float equipment. 16.15 P/U, verify setting tool is released, and expose setting dogs on top of tieback sleeve 16.16 Rotate slowly and slack off 50k downhole to set ZXP. 16.17 Pressure up drill pipe to 500 psi and pick up to remove the RS packoff bushing from the RS profile. Bump up pressure as req'd to maintain 500 psi DP pressure while moving pipe until the pressure drops rapidly, indicating pack -off is above the sealing area (ensure that 500 psi will be enough to overcome hydrostatic differential at liner top). 16.18 Immediately with the loss of pressure and before DP reaches zero, initiate circulation while picking up to position the bottom of the stinger inside the tieback sleeve. Increase pump rate to wellbore clean up rate until the sleeve area is thoroughly cleaned. 16.19 Pick up to the high -rate circulation point above the tieback extension, mark the pipe for reciprocation, do not re -tag the liner top, and circulate the well clean. 16.20 Watch for cement returns and record the estimated volume. Rotate & circulate to clear cmt from DP. 16.21 POOH, LDDP. Verify the liner top packer received the required setting force by inspecting the rotating dog sub. Backup release from liner hanger: 16.22 If the HRD-E tool still does not release hydraulically, left-hand (counterclockwise) torque will have to be applied to the tool. This torque acts to shear brass screws. Bleed off pump pressure and ensure that the tool is in the neutral position. Apply left-hand torque as required to shear screws. 16.23 NOTE: Some hole conditions may require movement of the drillpipe to "work" the torque down to the setting tool. 16.24 After screws have sheared, the top sub and body of the setting tool will turn 1/4 turn. Then proceed slacking off set -down weight to shear second set of shear screws. The top sub will drop 1-3/4 inches. At this point, the bottom sub no longer supports the collet fingers. Pick straight up with workstring to release collet from the profile. Page 27 Revision 0 July, 2016 llilvorp .UaAa. LLC K-IORD2 Drilling Procedure Rev 0 Ensure to report the following on Wellez: • Pre flush type, volume (bbls) & weight (ppg) • Cement slurry type, lead or tail, volume & weight • Pump rate while mixing, bpm, note any shutdown during mixing operations with a duration • Pump rate while displacing, note whether displacement by pump truck or mud pumps, weight & type of displacing fluid • Note if casing is reciprocated or rotated during the job • Calculated volume of displacement, actual displacement volume, whether plug bumped & bump pressure, do floats hold • Percent mud returns during job, if intermittent note timing during pumping of job. Final circulating pressure • Note if pre flush or cement returns at surface & volume • Note time cement in place • Note calculated top of cement • Add any comments which would describe the successor problems during the cement job Note: Send Csg & cmt report + "As -Run" liner tally to mmyers(&hilcorp.com Page 28 Revision 0 July, 2016 K-IORD2 Drilling Procedure Rev 0 Ililcorp kla<ka, LLC 17.0 Wellbore Clean Up & Displacement 17.1 M/U casing clean out assy complete with casing scraper assys for each size casing in the hole. • 6" bit or mill • Casing scraper & brush for 7" 29# casing • +/- 5000' 2-7/8" workstring. • Casing scraper & brush for 9-5/8" 53.5# casing • (2000') 4-1/2" DP • Casing scraper & brush for 9-5/8" 53.5# casing • 4-1/2" DP to surface. 17.2 TIH & clean out well to landing collar (+/- 13,080' MD). • Circulate as needed on trip in if string begins to take weight. • Circulate hi -vis sweeps as necessary to carry debris out of wellbore. • Ensure 6" bit is worked down to the landing collar. • Space out the cleanout BHA so that the 6" bit reaches the 4-1/2" landing collar when crossover is +/- 30' above the 7" liner top. 17.3 After wellbore has been cleaned out satisfactorily using mud, test casing to 3500 psi / 30 min. Ensure to chart record casing test. 17.4 Displace drilling fluid in wellbore with a hi -vis pill followed by filtered inlet water. • Circulate 3 to 4 B/U until clean-up is satisfactory. Do not recirculate fluid, pump and dump • After a couple circulations using FIW, short trip the assy to bring the upper 7" multi -back assy to surface. • RIH again & tag landing collar w/ 6" bit. Continue circulation as necessary until fluid cleans up. Make another short trip if necessary. • Pump a chemical train followed by FIW. Target NTU's are 80-100 17.5 TOH w/ clean out assy. LDDP on the trip out. L/D the 2-7/8" work string. Page 29 Revision 0 July, 2016 K-1 ORD2 Drilling Procedure Rev 0 Ililrorp Alaska.. LIA: 18.0 Run Completion Assembly 18.1 Run 3-1/2" tubing completion assembly as per separate Approved Completion Sundry 19.0 RD 19.1 Install BPV in wellhead. RILDs. 19.2 ND BOPE, NU tree, test void 19.3 Rig Down Page 30 Revision 0 July, 2016 Ililvmrp Alaska, LLA: 20.0 BOP Schematic K-IORD2 Drilling Procedure Rev 0 Rig Floor Page 31 Revision 0 July, 2016 Ililcorp Alaska. LLA: 21.0 Wellhead Schematic King Salmon K-10RD 24X 13318X95/8X41/2 Valve, Swab, 4 1/16 SM FE, trim Valve, Master, F 4 1/16 SM FE, H trim Unihead, OCT type 3, 13 5/8 5M AN hub top X 13 3/8 BTC casing bottom, w/ 1- 2 1/16 5M SSO on lower section, 1- 2 1/16 5M SSO on middle section, 3- 2 1/16 5M SSO on upper section, 10 internal lockpin assy Starting head, FMC, 21 M 2M X 24" SOW, w/ 1- 3 1/8 2M EFO K-10RD2 Drilling Procedure Rev 0 Tubing hanger, FMC -UH - TC -1A -EN, 13 5/8 5M X 4 A IBT lift and susp, w/ 4" type IS BPV BHTA, B -11-A-0, 4 1116 5M FE 1 518 5M A w/ 7" cket 411 annular valves are 2 1/16 SM FMC 20 Page 32 Revision 0 July, 2016 Ililcorp .Uaska, LLC 22.0 Days vs Depth Days Vs Depth K-lORD2 Drilling Procedure Rev 0 0 - — K-10RD2 2000 _ 4000 r 6000 t r O I v I 7 I N 8000 10000 12000 14000 0 5 10 15 20 25 Days Page 33 Revision 0 July, 2016 Ililwrp ua.ka.. LIA: 23.0 Geo-Prog GEOLOGICAL PROGNOSIS K10RD2 Formation KOP G7ST G7Sl3 HKST HK6T HK7T TD Based on subsurface evaluation K-10RD2 Drilling Procedure Rev 0 MCARTHUR RIVER K10RD2 Alaska KB 122 Based on new rig config. 0.0 to the G-7, and Hemlock H- 50 FT EMW Gradient 8.3 0.43 8.3 0.43 8.3 0.43 8.3 0.43 8.3 0.43 8.3 0.43 4 man Crew below KOP GR/RES ✓ ESP w/ Gas lift backup 2000 bpd gross fluid 2 7/8" or 3.5' Page 34 Revision 0 July, 2016 - 3a EXPECTED FORMATION FLUID MD TVD Est Pressure 8400 0 Sand / Conglomerate Oil Sand 11744 9013 3903 Sand / Conglomerate Oil Sand 11871 9113 3946 Sand / Conglomerate Oil Sand 12479 9485 4107 Sand / Conglomerate Oil Sand 12694 9551 4136 Sand / Conglomerate Oil Sand 13114 9644 4176 Sand / Conglomerate Oil Sand 13200 9663 4184 50 FT EMW Gradient 8.3 0.43 8.3 0.43 8.3 0.43 8.3 0.43 8.3 0.43 8.3 0.43 4 man Crew below KOP GR/RES ✓ ESP w/ Gas lift backup 2000 bpd gross fluid 2 7/8" or 3.5' Page 34 Revision 0 July, 2016 24.0 Anticipated Drilling Hazards Lost Circulation: K-10RD2 Drilling Procedure Rev 0 Ensure 500 lbs of medium/coarse fibrous material, 500 lbs SteelSeal (Angular, dual -composition carbon -based material), & 500 lbs different sizes of Calcium Carbonate are available on location to mix LCM pills at moderate product concentrations. Hole Cleaning: Maintain rheology w/ viscofier as necessary. Sweep hole w/ 20 bbls flowzan as necessary. Optimize solids control equipment to maintain density and minimize sand content. Maintain programmed mud specs. Coal Drilling: The following lessons were learned from extensive experience drilling coal seams in Cook Inlet. The need for good planning and drilling practices is also emphasized as a key component for success. • Keep the drill pipe in tension to prevent a whipping effect which can disturb coal sections. • Use asphalt -type additives to further stabilize coal seams. • Increase fluid density as required to control running coals. • Emphasize good hole cleaning through hydraulics, ROP and system rheology. • Minimize swab and surge pressures • Minimize back reaming through coals when possible WS: 1-12S is not present in this hole section. No abnormal temperatures or pressures are present in this hole section. Page 35 Revision 0 July, 2016 25.0 Rig Layout K-lORD2 Drilling Procedure Rev 0 1Z 0 Page 36 Revision 0 July, 2016 26.0 FIT Procedure Procedure for FIT: K-10RD2 Drilling Procedure Rev 0 Formation Integrity Test (FIT) and Leak -Off Test (LOT) Procedures 1. Drill 20' of new formation below the casing shoe (this does not include rat hole below the shoe). 2. Circulate the hole to establish a uniform mud density throughout the system. P/U into the shoe. 3. Close the blowout preventer (ram or annular). 4. Pump down the drill stem at 1/4 to 1/2 bpm. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) vs. drill pipe pressure until appropriate surface pressure is achieved for FIT at shoe. 6. Shut down at required surface pressure. Hold for a minimum 10 minutes or until the pressure stabilizes. Record time vs. pressure in 1 -minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. The pre -determined surface pressure for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measures are required. Where required, the LOT is performed in the same fashion as the formation integrity test. Instead of stopping at a pre -determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with an FIT. Page 37 Revision 0 July, 2016 11ile-1) AkAa, LU: K-10RD2 Drilling Procedure Rev 0 27.0 Choke Manifold Schematic Choke ,Manifold Valves 2' 3" To Shaker 3" Panic To Gasbuster t1/8" 2 1/16" ++ 2 1/16" + " + 2 1/16"+ 2 1/16" 1 Manual Choke Automatic Choke 2 1/16" Inlet Pressure Sensor 3" 3" 5,000 PSI Choke Manifold Kuukpik Drilling Rig 5 RED = 3 1/18" 5,000 PSI VALVES AND LINES BLUE = 2 1/16"5,000 PSI VALVES Kuukpik Drilling Rig 5 Choke Manifold Page 38 Revision 0 July, 2016 Ilfloorp ANAa, H.0 28.0 Fluid Flow Diagrams n S >R ICC f �e la IN I� IF IN I�+lo I i l I l i l l l 1 II ly 11•'I"ly ly IN lC'1 I I�Ipipl�f�l�tipl i° I 101 I i 1�1 l i 1 t� U Iq h U I. IA Iq t ^^ n•n•n•n•n•n•n�n !SIS!S!S!S!S!S!SIS !aia!a!a!a!a!i;!aI! 1 Page 39 K-IORD2 Drilling Procedure Rev 0 to T 2. Revision 0 July, 2016 Iv! K-IORD2 Drilling Procedure Rev 0 11ilemp :Ua.+ka.. 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't li 1 1 1 I l i IA 1 I$, I I I i l l i W W CD 4 Fri O � C: T s K-10RD2 Drilling Procedure Rev 0 G) N [wJ � ry � W N � CC tG Na C O O Page 41 Revision 0 July, 2016 Ilile—I) AIaAa. H.0 29.0 Offset MW vs. Depth TVD MW vs TVD Offsets n „m 3000 K-10RD2 Drilling Procedure Rev 0 6000 101 •m 11000 8 9 10 11 12 13 14 15 Mud Weight (PPG) Page 42 Revision 0 July, 2016 nilcoq :Va�ka, LLC K-10RD2 Drilling Procedure Rev 0 30.0 Casing Design Information Calculation & Casing Design Factors Cook Inlet Offshore DATE: 8/15/2016 WELL: K-10RD2 FIELD: McArthur River DESIGN BY: Monty M Myers Design Criteria: Hole Size Mud Density: Hole Size 8-1/2" Mud Density: 9.2 ppg Hole Size Mud Density: Drilling Mode MASP: 2437 psi (See attached MASP determination & calculat Production Mode MASP: 3189 psi (See attached MASP determination & calculation) Collapse Calculation: Section Calculation 1,2 Normal gradient external stress (0.43 psi/ft) and the casing evacuated for the internal stress Page 43 Revision 0 July, 2016 Casing Section Calculation/Specification 1 2 3 4 Casing OD 7" Top (MD) 8,200 Top (TVD) 5,970 Bottom (MD) 13,200 Bottom (TVD) 9,663 Length 5,000 Weight (ppo 29 Grade L-80 Connection DWC/C Weight w/o Bouyancy Factor (lbs) 145,000 Tension at Top of Section (lbs) 225,000 Min strength Tension (1000 lbs) 676 Worst Case Safety Factor (Tension) 3.00 Collapse Pressure at bottom (Psi) 3,769 Collapse Resistance w/o tension (Psi) 7,030 Worst Case Safety Factor (Collapse) 1.87 MASP (psi) 21437 Minimum Yield (psi) 8,160 Worst case safety factor (Burst) 3.35 Page 43 Revision 0 July, 2016 K-10RD2 Drilling Procedure Rev 0 31.0 8-1/2" Hole Section MASP Maximum Anticipated Surface Pressure Calculation 14 �c8 1/2" Hole Section K-10RD2 Cook Inlet, Alaska MD TVD Planned Top: 8400 6101 Planned TD: 13200 9663 Anticioated Formations and Pressures: Formation TVD Est Pressure Oil/Gas/Wet PPG Grad G7ST 9,013 3903 Oil Sand 8.3 0.43 G7SB 9,113 3946 Oil Sand 8.3 0.43 HK5T 9,485 4107 Oil Sand 8.3 0.43 HK6T 9,551 4136 Oil Sand 8.3 0.43 HK7T 9,644 4176 Oil Sand 8.3 0.43 TD 9,663 1 4184 Oil Sand 8.3 0.43 Offset Well Mud Densities Well MW ranee Too (TVDI Bottom (TVDI Date A-27RD2 9.3-9.5 7,755 9,718 2016 A-27 8.9-9.8 3,360 7,017 1973 A-27RD 9.5-9.7 6,328 9,950 1997 K-26RD 9.4-10.2 7,800 9,971 1995 Assumptions: 1. Anticipated fracture gradient at 8400' TMD (6101' TVD) = 0.7 =13.4 ppg EMW 2. Maximum planned mud density for the 8-1/2" hole section is 9.5 ppg. 3. Calculations assumes 9.2 ppg reservoir contains 2/3 gas, 1/3 water. Fracture Pressure at window considering a full column of gas from window to surface: 6101 (ft) x 0.7(psi/ft)= 4271 4271 (psi) - [0.1(psi/ft)*6101(ft)]= 3661 psi MASP from pore pressure; normal gradient at TD, (0.43 psi/ft) 9663 (ft) x 0.43(psi/ft)= 4155 psi 4155(psi) - (0.1(psi/ft)*9663(ft))= 3189 psi MASP from pore pressure; unknown gas sand at TD, at 9.2 ppg (0.4784 psi/ft) 9663 (ft) x 0.4784(psi/ft)= 4623 psiProduction MASP 4623(psi) - [(2/3)*0.1(psi/ft)*9663(ft)]+[(1/3)*0.4784(psi/ft)*9663(ft)]= 2437 psi Drilling MASP Summary: 1. MASP while drilling 8-1/2" hole is governed by pore pressure minus 2/3 of wellbore evacuated togas (remaining 1/3 remains 9.2 ppg drilling fluid) Page 44 Revision 0 July, 2016 Ild1) Alaska, LLC 32.0 Plot (NAD 27) (Governmental Sections) S009N013 S 1 K-12RD BHI K-12RD2 Bk*- - - - -- •- K,,"D BHL ADL•018779!3-P ME � KgoRBE�LJ • df K-1.RD' TPII K-0}%BHL WFtI Lik_bi B--_-- - K-01RD2� - - "aft BM 11 1 1 � K-08PBZIBHLK-08 Bm G-15 BHL l �1 ��- -G•29OU Legend • K-10RD2_SHL X K-10RD2_TPH + K-10RD2_BHL • Surface Hole Location • Bottom Hole Locatron - - - Well Paths K-10RD2 Drilling Procedure Rev 0 K-22PS BHL K-22 BHL 11• 1 _ K-12 BHL K-loRD2 Slll_���� - ----'------- ' ADL017594,'� 6HL , � •Ky11 BHL , , K-10RD2 G-19 BHL 1 TRADING BAY G-33 BHL I 1 I 1 I ` I ` 11. 1 m ` G-0 l G0 M BH t ADI - Y018730 @ 1 • 1 f(YY)I I wv @@% l& --T O'W4 B�p 1 1.500 3.000 Feet j Alaska State Plane Zone 4, NAD27 /� Map Date: 811112816 Page 45 Revision 0 July, 2016 K-10RD2 Drilling Procedure Rev 0 Ilifcoq) Alaska. 1.1.1.: 33.0 Slot Diagram (As Built) (NAD 2 K2 K.t KING SALMON PLATFORM ASBUILT WELL LOCATIONS SECTION 16, T9N, R13W, S.M., AK ro �tfu sots Pw. CENTER LEG 3 LAT: 60' 51'55 1292% LONA 151.36 22.103$'W N: 2511719 224' E 213712.532' ASP ZONE 4 NAD 27 ?2?; FSI i 3RD 160' FEL t9 K-29 Kf MP K.i 120' FEL K 20 K,Y K2<HO -12T FEL n co 167' FEL .--K-S K. i:Ate CENTER LEG 2 LAT: 60' 51'547696"N LON: 151' 36' 20.9005'MI N: 2511681.260' E: 213771.191' ASP ZONE 4 NAD 27 I 690'FSL(NTS) 6j4' FSL (NTS) NOTES 1. BASIS OF HORIZONTAL CONTROL: NAD83 US FEET POSITION (EPOCH 2010) AND VERTICAL CONTROL (NAVD88) IS AN OPUS SOLUTION FROM NGS STATIONS KENS. AC51 AND AC23 TO ESTABLISH POINT #300. THE ALASKA STATE PLANE COORDINATES NAD 83 ZONE 4 IN FEET ARE: N = 2511443.373 E = 1353731.256 ELEV. = 99.189 (NAVD88) 2. SECTION LINES SHOWN ARE EXTENSIONS OF PROTRACTED VALUES. 3. DATUM TRANSFORMATIONS (NAD83 ASPZ4 TO NAD27 ASPZ4) WERE DONE USING CORPSCON SOFTWARE VERSION 6.0.1. SECTION CORNER (PROTRACTED) N 2511063.548' — E:213922.797 LINE NOT TO SCALE (NTS) SCALE u 50 h:u FEET 121119 ®E Ci—A t.c 1,: EROe1E[PIROM4f91NO, wayEVIRo,TESTw. PO 70X 4e/ SOIOOTNA"'"M vpCE 11012l9.21e f"MW40-M. E swawa[nMc+wEcoCo+ it Ililcorp T11awk,{. L.Lf. CENTER LEG 4 W°'SX)R - OUTS W14 LAT: 60' S1' 55A806'N SCALE '•-d LON: 151" 36' 21.1490'W CENTER LEG 1 N: 2511794.345' LAT: 60' 51' %9419'N E: 213761.651' LON: 151` 36' 19,8893"W ASP ZONE 4 NAD 27 cRa N 2511756.503' E: 213820.519 K 12 ASP ZONE 4 NAD 27 K2 K.t KING SALMON PLATFORM ASBUILT WELL LOCATIONS SECTION 16, T9N, R13W, S.M., AK ro �tfu sots Pw. CENTER LEG 3 LAT: 60' 51'55 1292% LONA 151.36 22.103$'W N: 2511719 224' E 213712.532' ASP ZONE 4 NAD 27 ?2?; FSI i 3RD 160' FEL t9 K-29 Kf MP K.i 120' FEL K 20 K,Y K2<HO -12T FEL n co 167' FEL .--K-S K. i:Ate CENTER LEG 2 LAT: 60' 51'547696"N LON: 151' 36' 20.9005'MI N: 2511681.260' E: 213771.191' ASP ZONE 4 NAD 27 I 690'FSL(NTS) 6j4' FSL (NTS) NOTES 1. BASIS OF HORIZONTAL CONTROL: NAD83 US FEET POSITION (EPOCH 2010) AND VERTICAL CONTROL (NAVD88) IS AN OPUS SOLUTION FROM NGS STATIONS KENS. AC51 AND AC23 TO ESTABLISH POINT #300. THE ALASKA STATE PLANE COORDINATES NAD 83 ZONE 4 IN FEET ARE: N = 2511443.373 E = 1353731.256 ELEV. = 99.189 (NAVD88) 2. SECTION LINES SHOWN ARE EXTENSIONS OF PROTRACTED VALUES. 3. DATUM TRANSFORMATIONS (NAD83 ASPZ4 TO NAD27 ASPZ4) WERE DONE USING CORPSCON SOFTWARE VERSION 6.0.1. SECTION CORNER (PROTRACTED) N 2511063.548' — E:213922.797 LINE NOT TO SCALE (NTS) SCALE u 50 h:u FEET 121119 ®E Ci—A t.c 1,: EROe1E[PIROM4f91NO, wayEVIRo,TESTw. PO 70X 4e/ SOIOOTNA"'"M vpCE 11012l9.21e f"MW40-M. E swawa[nMc+wEcoCo+ it Ililcorp T11awk,{. L.Lf. PaaecT HLCORP ALASKA, LLG KING SALMON PLATFORM WELLS COOK INLET ALASKA AS BUILT SURFACE LOCATION NAD 27 W°'SX)R - OUTS W14 olt.' Ry 1e SCALE '•-d PROXCT W. "we9 BOOK 14 e IOCAi ' PROTRACTED SEC. 16 T09N R13W SEWARD MERIDIAN, ALASKA SHEET -2 Page 46 Revision 0 July, 2016 Ilileorp Alaxka. LIA: K-10RD2 Drilling Procedure Rev 0 Slot # Well # Northing Easting NAD 27 Latitude Longitude Leg 1 Center Leg 1 2511756.503 213820.519 60' 51'55.52222" -151' 36' 19.94191" 1 K-21RD 2511751.133 213822.994 60` 51'55.46995" -151° 36'19.98928" 2 K-30 2511750.754 213819.220 60° 51'55.46531" -151° 36'19.96528" 3 K-18RD 2511753.106 213815.860 60' 51'55.48766" -151' 36'20.034281, 4 K-17 2511757.623 213814.976 60'51'55.53191" -151' 36'20.054371, 5 K-23 2511761.085 213816.638 60'51'55.56639" -151° 36'20.02253" 6 K-19 2511761.888 213820.828 60' 51' 55.57531" -151° 36' 19.93833" 7 K-22RD 2511759.441 213825.218 60' 51'55.55228" 151° 36' 19.84850" 8 K-20 2511754.730 1 213825.531 60' 51'55.50598" 1 151° 36' 19.83984" Leg 2 Center Leg 2 2511681.260 213771.191 60° 51'54.76960" -151' 36'20.90053" 9 K-15RD 2511676.516 213774.559 60'51'54.72372" -151° 36'20.83019" 10 K-9 2511675.411 213770.205 60' 51'54.71178" 151° 36' 20.91754" 11 K-4RD 2511678.297 213765.971 60' 51' 54.73918" 151° 36'21.00445" 12 K-11 2511682.498 213765.183 60° 51'54.78034" -151'36'21.02242" 13 K-13RD2 2511685.931 213767.848 60° 51'54.81478" -151' 36'20.97031" 14 K-2RD 2511686.644 213772.096 60° 51'54.82282" -151'36'20.88491" 15 K-7RD 2511684.476 213775.691 60'51'54.80235" 151° 36' 20.81128" 16 K-5 2511680.120 213776.722 60' 51' 54.75972" 151° 36' 20.78831" Leg 3 1 Center Leg 3 1 2511719.224 1 213712.532 1 60' 51' 55.12919" -151° 36'22.10 Leg 4 Center Leg 4 2511794.345 213761.651 60' 51'55.88057" -151° 36'21.14901" 25 K-26RD 2511789.752 213764.548 60° 51'55.83605" -151' 36'21.088271, 26 K-1RD2 2511788.570 213760.661 60'51'55.82347" -151° 36' 21.16616" 27 K-10RD 2511791.323 213757.250 60' 51'55.84976" 151° 36'21.23636" 28 K-25 2511795.528 213756.002 60' 51' 55.89085" 151° 36 21.26364" 29 K-12RD2 2511799.318 213758.343 60' 51'55.92872" 151° 36' 21.21826" 30 K-6RD 2511799.443 213762.467 60' 51'55.93095" 151' 36' 21.13506" 31 K-24RD2 2511797.672 213766.437 60' 51'55.91447" 151' 36'21.05403" 32 K -3RD 2511793.127 213767.529 60'51'55.86999" 151° 36' 21.02976" 1 PNO]ECT HILCORP ALASKA, LLC KING SALMON PLATFORM WELLS x1150 OA.L CRAIM BY M8 COOK INLET ALASKA %ALE NIA > WMEEFUr i WAMP41 SURVEYING' �C- .. AS BUILT SURFACE LOCATION NAD 27 v�crro. +Heti, BOOR NO ta-0B LOCAIx1, PROTRACTED SEC. 16 T09N R13W SEWARD MERIDIAN, ALASKA 5»LeT 2.:-- 2 PO am -0 SfMCOTN4N SOBA ,OCE 1901 283-216 rA[ wor>auar:a LNAa 5ALCLAW0k9UMXCG0UM I Ii1corp Alaska, LI.0 Page 47 Revision 0 July, 2016 K-IORD2 Drilling Procedure Rev 0 Ilileorp kla.ka. LLC 34.0 Directional Program (wp04a) Page 48 Revision 0 July, 2016 Hilcorp Energy Company Trading Bay King Salmon Plan:K-10 Plan: K-10RD2 Plan: K-10RD2 wp04a Standard Proposal Report 08 August, 2016 HALLIBURTON Sperry Drilling Services HALLIBURTON Sperry Drilling _- 00 60 Project: Trading Bay Site: King Salmon Well: Plan:K-10 Wellbore: Plan: K-10RD2 Plan: K-10RD2 wp04a I 00 ^0 KOP: Start Dir 121/100' : 8400' MD. 6100.957VD : 60° LT TF WELL DETAIL. Plan:K-10 NAD 1927 (NADCON CONUS) Alaska Zone 04 Water Depth: 73.00 +N/ -S +Fl -W Northing Easting Latittude Longitude 0.00 0.00 2511791.32 213757.25 60' 51'55.850 N 151'36'21.23 W REFERENCE INFORMATION Co-ordinate (N/E) Reference: Well Plan:K-10, True North Vertical (TVD) Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 51 000 Measured Depth Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 5) End Dir : 8420' MD, 6114.1' TVD Calculation Method: Minimum Curvature 6000 000 - - _ - - Start Dir 4°/100' : 8440' MD, 6127.08'TVD �CjO 636 6500 00�� . End Dir : 9027.46' MD, 6587.48' TV CSO $60 CSO :303 190.2.(`10 9 7000 1526ID 91169 5 t�0 �O °� CI O /N 1$ 1191 l 999 0 0`100 10 11g5� L 7500 g��O``6 O`� 1tyI100 11�Ogh� CIO O , 8000 0 EnaO\( 13200 11 8500 �o1a10eP1r O I-_ 9000 �2�0� X10 0 11 9500 M ' 0 X10 OA'C9� 10000 1p� NQ 193 ,' K-10RD2 wp04a A 19 0 10� .NQ 0500 10500- 000 3500 4000 4500 5000 5500 6000 6500 7000 7500 8000 8500 9000 9500 10000 10500 11000 11500 12000 12500 13000 13500 -250 Vertical Section at 249.00' (1500 usft/in) -500 -750 1000 -1500 � o -1750 K -10B wp04 Tgtl a -2000 CJ � -I OB wp04 Tgt2 o K -10B wp04 Tgt3 ro rn -2500 d .So K -10B wp04 Tgt4 cd joo -2750 _ d tl 7 s -3000 i -0, JO 659 •c�6a; 6i -3250 �% 06- -3500 6-3500 Total Depth: 13200' MD, 9663' TVD •.99 �G -3750 0 -8750 -8500 -8250 -8000 -7750 -7500 -7250 -7000 -6750 -6500 -6250 -6000 -5750 -5500 -5250 -5000 -4750 -4500 -4250 -4000 -3750 -3500 West( -)/Fast(+) (750 ust4/in) HALLIBURTON Database: Sperry EDM - NORTH US + CANADA Company: Hilcorp Energy Company Project: Trading Bay Site: King Salmon Well: Plan:K-10 Wellbore: Plan: K-101RD2 Design: K-10RD2 wp04a Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Halliburton Standard Proposal Report Well Plan:K-10 K-10RD2 Plan @ 122.00usft (Kuukpik 5) K-10RD2 Plan @ 122.00usft (Kuukpik 5) True Minimum Curvature Project Trading Bay Map System: US State Plane 1927 (Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927 (NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Northing: Easting: 0.00 usft Slot Radius: 0.00 usft Northing: 0.00 usft Easting: 0.00 usft Wellhead Elevation: Wellbore Plan: K-10RD2 Site King Salmon Site Position: Model Name From: Map Position Uncertainty: BGGM2016 Well Plan:K-10 Well Position +N/ -S (°) +E/ -W Position Uncertainty 0.00 0.00 0.00 Northing: Easting: 0.00 usft Slot Radius: 0.00 usft Northing: 0.00 usft Easting: 0.00 usft Wellhead Elevation: Wellbore Plan: K-10RD2 Build Turn Magnetics Model Name Sample Date Rate Rate BGGM2016 (usft) 8/8/2016 Design K-10RD2 wp04a (°) -5,087.02 Audit Notes: 0.00 0.00 0.00 -5,101.95 Version: 6.16 -13.66 Phase: Vertical Section: 0.00 0.00 Depth From (TVD) -5,467.67 4.00 -3.95 (usft) -172.82 -6,524.18 0.00 0.00 0.00 0.00 Plan Sections 5.00 4.00 -5.86 -43.42 Measured 5.00 2.70 Vertical TVD Depth Inclination Azimuth Depth System (usft) (') (°) (usft) usft 8,400.00 48.29 263.34 6,100.95 5,978.95 i 8,420.00 49.52 260.61 6,114.10 5,992.10 8,440.00 49.52 260.61 6,127.08 6,005.08 9,027.46 26.33 254.16 6,587.48 6,465.48 11,503.25 26.33 254.16 8,806.36 8,684.36 11,744.71 36.00 240.00 9,013.00 8,891.00 11,954.78 41.66 225.84 9,176.90 9,054.90 11,977.94 41.66 225.84 9,194.20 9,072.20 12,689.10 77.22 225.30 9,549.99 9,427.99 13,114.10 77.22 225.30 9,644.00 9,522.00 13,200.00 77.22 - 225.30 9,663.00 9,541.00 2,511,786.28 usft Latitude: 60° 51'55 800 N 213,756.95usft Longitude: 151° 36'21.240 W 13-3/16" Grid Convergence: -1.40 ° 2,511,791.32 usft Latitude: 60° 51'55.850 N 213,757.25 usft Longitude: 151 ° 36'21.236 W 0.00 usft Water Depth: 73.00 usft Declination Dip Angle Field Strength (°1 (°) (nT) 16.33 73.76 55,460 PLAN +N/ -S (usft) 0.00 +N/ -S (usft) -1,647.23 -1,649.33 -1,651.81 -1,724.86 -2,024.69 -2,074.98 -2,154.71 -2,165.44 -2,587.67 -2,879.21 -2,938.13 Tie On Depth: 8,400.00 +E/ -W Direction (usft) (I 0.00 249.00 8/8/2016 5:51:31PM Page 2 COMPASS 5000.1 Build 81 Dogleg Build Turn +E/ -W Rate Rate Rate Tool Face (usft) ('/100usft) ('/100usft) ('/100usft) (°) -5,087.02 0.00 0.00 0.00 0.00 -5,101.95 12.00 6.16 -13.66 -60.00 -5,116.96 0.00 0.00 0.00 0.00 -5,467.67 4.00 -3.95 -1.10 -172.82 -6,524.18 0.00 0.00 0.00 0.00 -6,637.57 5.00 4.00 -5.86 -43.42 -6,741.42 5.00 2.70 -6.74 -63.14 -6,752.47 0.00 0.00 0.00 0.00 -7,182.42 5.00 5.00 -0.08 -0.91 -7,477.03 0.00 0.00 0.00 0.00 -7,536.57 0.00 0.00 0.00 0.00 8/8/2016 5:51:31PM Page 2 COMPASS 5000.1 Build 81 Halliburton H ALL I B U R TO N Standard Proposal Report Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Well Plan:K-10 Company: Hilcorp Energy Company TVD Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 5) Project: Trading Bay MD Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 5) Site: King Salmon North Reference: True Well: Plan:K-10 Survey Calculation Method: Minimum Curvature Wellbore: Pian: K-10RD2 222.00 0.25 Design: K-10RD2 wp04a 100.00 -0.08 F - 2,511,791.26 213,756.91 0.18 Planned Survey 322.00 2.15 260.44 Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/ -S +E/ -W Northing Easting DLS Vert Section (usft) V) (^) (usft) usft (usft) (usft) (usft) (usft) -122.00 0.00 0.00 0.00 0.00 -122.00 0.00 0.00 2,511,791.32 213,757.25 0.00 0.00 122.00 0.07 259.94 122.00 0.00 -0.01 -0.07 2,511,791.31 213,757.18 0.06 0.07 222.00 0.25 256.26 222.00 100.00 -0.08 -0.35 2,511,791.26 213,756.91 0.18 0.35 322.00 2.15 260.44 321.97 199.97 -0.44 -2.41 2,511,790.94 213,754.84 1.90 2.40 422.00 4.83 306.21 421.79 299.79 1.74 -7.66 2,511,793.25 213,749.64 3.67 6.52 522.00 6.34 313.68 521.32 399.32 8.04 -15.05 2,511,799.73 213,742.41 1.67 11.17 622.00 9.22 298.90 620.40 498.40 15.73 -26.06 2,511,807.68 213,731.59 3.48 18.69 722.00 11.65 280.53 718.76 596.76 21.44 -43.00 2,511,813.82 213,714.79 4.09 32.46 822.00 12.37 255.89 816.64 694.64 20.68 -63.33 2,511,813.55 213,694.45 5.14 51.72 922.00 14.44 241.86 913.93 791.93 12.18 -84.72 2,511,805.58 213,672.85 3.84 74.73 1,022.00 17.39 241.35 1,010.09 888.09 -0.86 -108.84 2,511,793.12 213,648.43 2.95 101.92 1,122.00 20.34 240.91 1,104.71 982.71 -16.48 -137.14 2,511,778.20 213,619.75 2.95 133.94 1,222.00 23.05 243.74 1,197.62 1,075.62 -33.60 -169.89 2,51 " 761,90 213,586.59 2.90 170.65 1,322.00 26.06 242.66 1,288.56 1,166.56 -52.35 -206.97 2,511,744.05 213,549.06 3.04 211.99 1,422.00 29.31 243.03 1,377.10 1,255.10 -73.55 -248.31 2,511,723.88 213,507.22 3.25 258.17 1,522.00 32.56 244.24 1,462.87 1,340.87 -96.35 -294.37 2,511,702.21 213,460.61 3.31 309.35 1,622.00 35.68 244.71 1,545.65 1,423.65 -120.51 -344.99 2,511,679.30 213,409.42 3.13 365.26 1,722.00 38.95 245.17 1,625.17 1,503.17 -146.17 -399.90 2,511,654.99 213,353.90 3.28 425.72 1,822.00 42.59 245.40 1,700.89 1,578.89 -173.47 -459.21 2,511,629.15 213,293.94 3.64 490.87 1,922.00 45.91 246.02 1,772.51 1,650.51 -202.16 -522.81 2,511,602.03 213,229.65 3.35 560.53 2,022.00 49.56 246.49 1,839.75 1,717.75 -231.94 -590.54 2,511,573.91 213,161.21 3.67 634.43 2,122.00 51.20 247.03 1,903.52 1,781.52 -262.33 -661.32 2,511,545.26 213,089.71 1.69 711.40 2,222.00 51.07 246.88 1,966.27 1,844.27 -292.81 -732.96 2,511,516.55 213,017.34 0.17 789.21 2,322.00 50.60 247.35 2,029.42 1,907.42 -322.96 -804.39 2,511,488.15 212,945.19 0.59 866.71 2,422.00 50.46 247.31 2,092.99 1,970.99 -352.72 -875.62 2,511,460.15 212,873.26 0.14 943.87 2,522.00 50.36 247.53 2,156.72 2,034.72 -382.31 -946.78 2,511,432.31 212,801.40 0.20 1,020.90 2,622.00 49.89 247.96 2,220.83 2,098.83 -411.37 -1,017.81 2,511,404.99 212,729.68 0.57 1,097.63 2,722.00 49.39 247.62 2,285.59 2,163.59 -440.17 -1,088.35 2,511,377.93 212,658.45 0.56 1,173.81 2,822.00 48.68 247.22 2,351.15 2,229.15 -469.17 -1,158.07 2,511,350.65 212,588.04 0.77 1,249.29 2,922.00 48.19 247.70 2,417.50 2,295.50 -497.85 -1,227.18 2,511,323.67 212,518.25 0.61 1,324.08 3,022.00 47.63 248.18 2,484.53 2,362.53 -525.72 -1,295.95 2,511,297.49 212,448.82 0.66 1,398.28 3,122.00 47.46 247.91 2,552.03 2,430.03 -553.31 -1,364.38 2,511,271.59 212,379.73 0.26 1,472.05 3,222.00 47.01 247.96 2,619.93 2,497.93 -580.88 -1,432.42 2,511,245.68 212,311.04 0.45 1,545.45 3,322.00 46.68 248.00 2,688.32 2,566.32 -608.24 -1,500.05 2,511,219.99 212,242.76 0.33 1,618.39 3,422.00 46.42 247.74 2,757.10 2,635.10 -635.58 -1,567.30 2,511,194.30 212,174.86 0.32 1,690.97 3,522.00 46.17 247.65 2,826.19 2,704.19 -663.02 -1,634.18 2,511,168.51 212,107.33 0.26 1,763.24 3,622.00 45.33 248.12 2,895.97 2,773.97 -689.99 -1,700.54 2,511,143.18 212,040.33 0.90 1,834.86 3,722.00 44.73 248.06 2,966.64 2,844.64 -716.39 -1,766.18 2,511,118.39 211,974.07 0.60 1,905.60 3,822.00 44.40 248.25 3,037.89 2,915.89 -742.50 -1,831.31 2,511,093.88 211,908.31 0.36 1,975.76 3,922.00 44.39 248.42 3,109.34 2,987.34 -768.33 -1,896.33 2,511,069.65 211,842.68 0.12 2,045.72 4,022.00 44.08 248.66 3,180.99 3,058.99 -793.85 -1,961.25 2,511,045.73 211,777.16 0.35 2,115.48 4,122.00 44.11 248.53 3,252.81 3,130.81 -819.24 -2,026.04 2,511,021.93 211,711.77 0.10 2,185.06 4,222.00 44.33 248.80 3,324.48 3,202.48 -844.62 -2,091.00 2,510,998.15 211,646.20 0.29 2,254.80 4,322.00 44.31 249.07 3,396.02 3,274.02 -869.73 -2,156.20 2,510,974.64 211,580.41 0.19 2,324.67 4,422.00 43.95 248.81 3,467.80 3,345.80 -894.75 -2,221.17 2,510,951.22 211,514.84 0.40 2,394.29 l 81812016 5:51:31PM Page 3 COMPASS 5000.1 Build 81 Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Well Plan:K-10 Company: Hilcorp Energy Company TVD Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 5) Project: Trading Bay MD Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 5) Site: King Salmon North Reference: True Well: Plan:K-10 Survey Calculation Method: Minimum Curvature Wellbore: Plan: K-10RD2 Design: K-10RD2 wp04a Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +Nl-S +El -W Northing Easting DLS Vert Section (usft) (1) (1) (usft) usft (usft) (usft) (usft) (usft) 3,417.78 4,522.00 43.97 248.99 3,539.78 3,417.78 -919.74 -2,285.94 2,510,927.83 211,449.49 0.13 2,463.71 4,622.00 43.77 249.51 3,611.87 3,489.87 -944.29 -2,350.74 2,510,904.87 211,384.10 0.41 2,533.01 4,722.00 43.78 249.77 3,684.08 3,562.08 -968.36 -2,415.60 2,510,882.39 211,318.67 0.18 2,602.19 4,822.00 43.86 249.59 3,756.23 3,634.23 -992.41 -2,480.53 2,510,859.94 211,253.17 0.15 2,671.42 4,922.00 43.83 249.90 3,828.35 3,706.35 -1,016.39 -2,545.52 2,510,837.56 211,187.61 0.22 2,740.69 5,020.00 43.53 249.96 3,899.23 3,777.23 -1,039.61 -2,609.09 2,510,815.90 211,123.49 0.31 2,808.36 13 318" 5,122.00 43.21 250.03 3,973.38 3,851.38 -1,063.57 -2,674.91 2,510,793.56 211,057.11 0.31 2,878.39 5,222.00 44.76 251.36 4,045.33 3,923.33 -1,086.52 -2,740.45 2,510,772.22 210,991.03 1.80 2,947.80 5,322.00 44.65 250.92 4,116.40 3,994.40 -1,109.26 -2,807.02 2,510,751.12 210,923.92 0.33 3,018.10 5,422.00 44.70 251.23 4,187.51 4,065.51 -1,132.06 -2,873.52 2,510,729.95 210,856.88 0.22 3,088.36 5,522.00 45.00 251.61 4,258.41 4,136.41 -1,154.53 -2,940.37 2,510,709.13 210,789.50 0.40 3,158.82 5,622.00 45.26 251.36 4,328.96 4,206.96 -1,177.04 -3,007.58 2,510,688.27 210,721.76 0.31 3,229.63 5,722.00 45.77 253.06 4,399.03 4,277.03 -1,198.83 -3,075.50 2,510,668.15 210,653.32 1.32 3,300.85 5,822.00 46.37 253.47 4,468.41 4,346.41 -1,219.56 -3,144.47 2,510,649.11 210,583.87 0.67 3,372.67 5,922.00 45.57 254.12 4,537.91 4,415.91 -1,239.63 -3,213.51 2,510,630.74 210,514.36 0.93 3,444.31 6,022.00 45.91 254.58 4,607.71 4,485.71 -1,258.95 -3,282.47 2,510,613.11 210,444.94 0.47 3,515.62 6,122.00 46.76 254.37 4,676.75 4,554.75 -1,278.31 -3,352.17 2,510,595.46 210,374.79 0.86 3,587.63 6,222.00 47.03 254.66 4,745.08 4,623.08 -1,297.80 -3,422.53 2,510,577.70 210,303.97 0.34 3,660.30 6,322.00 47.95 255.22 4,812.65 4,690.65 -1,316.96 -3,493.72 2,510,560.30 210,232.34 1.01 3,733.62 6,422.00 49.54 255.17 4,878.59 4,756.59 -1,336.17 -3,566.40 2,510,542.87 210,159.22 1.59 3,808.36 6,522.00 49.35 254.88 4,943.61 4,821.61 -1,355.80 -3,639.79 2,510,525.04 210,085.36 0.29 3,883.91 6,622.00 50.82 254.57 5,007.78 4,885.78 -1,376.01 -3,713.78 2,510,506.65 210,010.90 1.49 3,960.23 6,722.00 50.77 255.59 5,070.99 4,948.99 -1,395.96 -3,788.66 2,510,488.54 209,935.56 0.79 4,037.28 6,822.00 52.09 254.87 5,133.33 5,011.33 -1,415.89 -3,864.25 2,510,470.46 209,859.50 1.44 4,115.00 6,922.00 53.52 256.09 5,193.78 5,071.78 -1,435.86 -3,941.36 2,510,452.39 209,781.92 1.73 4,194.15 7,022.00 53.52 256.56 5,253.24 5,131.24 -1,454.86 -4,019.49 2,510,435.30 209,703.35 0.38 4,273.90 7,122.00 55.08 256.83 5,311.59 5,189.59 -1,473.55 -4,098.52 2,510,418.55 209,623.89 1.58 4,354.37 7,222.00 54.75 257.16 5,369.07 5,247.07 -1,491.97 -4,178.25 2,510,402.10 209,543.73 0.43 4,435.40 7,322.00 54.06 258.01 5,427.28 5,305.28 -1,509.45 -4,257.66 2,510,386.56 209,463.92 0.98 4,515.81 7,422.00 52.81 258.37 5,486.85 5,364.85 -1,525.89 -4,336.28 2,510,372.05 209,384.92 1.28 4,595.09 7,522.00 53.29 258.76 5,546.96 5,424.96 -1,541.73 -4,414.60 2,510,358.13 209,306.23 0.57 4,673.90 7,622.00 52.49 259.64 5,607.30 5,485.30 -1,556.68 -4,492.94 2,510,345.11 209,227.55 1.06 4,752.38 7,722.00 51.89 259.89 5,668.60 5,546.60 -1,570.72 -4,570.68 2,510,332.98 209,149.48 0.63 4,830.00 7,822.00 51.85 260.79 5,730.35 5,608.35 -1,583.92 -4,648.23 2,510,321.68 209,071.64 0.71 4,907.12 7,922.00 51.37 260.47 5,792.45 5,670.45 -1,596.68 -4,725.56 2,510,310.82 208,994.02 0.54 4,983.89 8,022.00 50.49 260.75 5,855.47 5,733.47 -1,609.35 -4,802.16 2,510,300.03 208,917.13 0.91 5,059.94 8,122.00 50.09 261.62 5,919.36 5,797.36 -1,621.14 -4,878.18 2,510,290.10 208,840.85 0.78 5,135.13 8,222.00 49.27 262.45 5,984.07 5,862.07 -1,631.70 -4,953.68 2,510,281.38 208,765.11 1.04 5,209.41 8,322.00 49.07 263.88 6,049.45 5,927.45 -1,640.71 -5,028.81 2,510,274.22 208,689.79 1.10 5,282.77 8,400.00 48.29 263.34 6,100.95 5,978.95 -1,647.23 -5,087.02 2,510,269.13 208,631.43 1.13 5,339.46 KOP: Start Dir 12°1100' : 8400' MD, 6100.95'TVD : 60' LT TF 8,420.00 49.52 End Dir : 8420' MD, 6114.1' 260.61 TVD 6,114.10 5,992.10 -1,649.33 -5,101.95 2,510,267.39 208,616.46 12.00 5,354.14 8/812016 5.51:31PM Page 4 COMPASS 5000.1 Build 81 HALLIBURTON Database: Sperry EDM - NORTH US + CANADA Company: Hilcorp Energy Company Project: Trading Bay Site: King Salmon Well: Plan:K-10 Wellbore: Plan: K-10RD2 Design: K-10RD2 wp04a Halliburton Standard Proposal Report Local Co-ordinate Reference: Well Plan:K-10 TVD Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 5) MD Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 5) North Reference: True Survey Calculation Method: Minimum Curvature Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +El-W Northing Easting DLS Vert Section (usft) V) V) (usft) usft (usft) (usft) (usft) (usft) 6,005.08 8,440.00 49.52 260.61 6,127.08 6,005.08 -1,651.81 -5,116.96 2,510,265.28 208,601.39 0.00 5,369.05 Start Dir 4°/100' : 8440' MD, 6127.08'TVD 8,500.00 47.14 260.20 6,166.97 6,044.97 -1,659.28 -5,161.15 2,510,258.89 208,557.03 4.00 5,412.98 8,600.00 43.18 259.44 6,237.47 6,115.47 -1,671.79 -5,230.93 2,510,248.10 208,486.97 4.00 5,482.61 8,700.00 39.22 258.56 6,312.70 6,190.70 -1,684.33 -5,295.57 2,510,237.14 208,422.03 4.00 5,547.46 8,800.00 35.27 257.52 6,392.29 6,270.29 -1,696.84 -5,354.78 2,510,226.08 208,362.54 4.00 5,607.21 8,900.00 31.33 256.26 6,475.85 6,353.85 -1,709.26 -5,408.24 2,510,214.98 208,308.79 4.00 5,661.57 9,000.00 27.41 254.67 6,562.98 6,440.98 -1,721.53 -5,455.71 2,510,203.88 208,261.03 4.00 5,710.29 9,027.46 26.33 254.16 6,587.48 6,465.48 -1,724.86 -5,467.67 2,510,200.84 208,249.00 4.00 5,722.64 End Dir : 9027.46' MD, 6587.48' TVD 9,100.00 26.33 254.16 6,652.49 6,530.49 -1,733.65 -5,498.62 2,510,192.81 208,217.84 0.00 5,754.69 9,200.00 26.33 254.16 6,742.12 6,620.12 -1,745.76 -5,541.30 2,510,181.75 208,174.88 0.00 5,798.87 9,300.00 26.33 254.16 6,831.74 6,709.74 -1,757.87 -5,583.97 2,510,170.69 208,131.92 0.00 5,843.05 9,400.00 26.33 254.16 6,921.36 6,799.36 -1,769.98 -5,626.64 2,510,159.63 208,088.96 0.00 5,887.23 9,500.00 26.33 254.16 7,010.98 6,888.98 -1,782.09 -5,669.32 2,510,148.57 208,046.01 0.00 5,931.41 9,600.00 26.33 254.16 7,100.61 6,978.61 -1,794.20 -5,711.99 2,510,137.50 208,003.05 0.00 5,975.59 9,700.00 26.33 254.16 7,190.23 7,068.23 -1,806.31 -5,754.66 2,510,126.44 207,960.09 0.00 6,019.76 9,800.00 26.33 254.16 7,279.85 7,157.85 -1,818.42 -5,797.34 2,510,115.38 207,917.14 0.00 6,063.94 9,900.00 26.33 254.16 7,369.48 7,247.48 -1,830.53 -5,840.01 2,510,104.32 207,874.18 0.00 6,108.12 10,000.00 26.33 254.16 7,459.10 7,337.10 -1,842.64 -5,882.69 2,510,093.26 207,831.22 0.00 6,152.30 10,100.00 26.33 254.16 7,548.72 7,426.72 -1,854.75 -5,925.36 2,510,082.19 207,788.26 0.00 6,196.48 10,200.00 26.33 254.16 7,638.35 7,516.35 -1,866.86 -5,968.03 2,510,071.13 207,745.31 0.00 6,240.66 10,300.00 26.33 254.16 7,727.97 7,605.97 -1,878.97 -6,010.71 2,510,060.07 207,702.35 0.00 6,284.84 10,400.00 26.33 254.16 7,817.59 7,695.59 -1,891.08 -6,053.38 2,510,049.01 207,659.39 0.00 6,329.02 10,500.00 26.33 254.16 7,907.22 7,785.22 -1,903.19 -6,096.05 2,510,037.95 207,616.43 0.00 6,373.20 10,600.00 26.33 254.16 7,996.84 7,874.84 -1,915.30 -6,138.73 2,510,026.88 207,573.48 0.00 6,417.38 10,700.00 26.33 254.16 8,086.46 7,964.46 -1,927.41 -6,181.40 2,510,015.82 207,530.52 0.00 6,461.56 10,800.00 26.33 254.16 8,176.08 8,054.08 -1,939.52 -6,224.07 2,510,004.76 207,487.56 0.00 6,505.74 10,900.00 26.33 254.16 8,265.71 8,143.71 -1,951.63 -6,266.75 2,509,993.70 207,444.60 0.00 6,549.92 11,000.00 26.33 254.16 8,355.33 8,233.33 -1,963.74 -6,309.42 2,509,982.64 207,401.65 0.00 6,594.10 11,100.00 26.33 254.16 8,444.95 8,322.95 -1,975.85 -6,352.10 2,509,971.57 207,358.69 0.00 6,638.27 11,200.00 26.33 254.16 8,534.58 8,412.58 -1,987.96 -6,394.77 2,509,960.51 207,315.73 0.00 6,682.45 11,300.00 26.33 254.16 8,624.20 8,502.20 -2,000.07 -6,437.44 2,509,949.45 207,272.77 0.00 6,726.63 11,400.00 26.33 254.16 8,713.82 8,591.82 -2,012.18 -6,480.12 2,509,938.39 207,229.82 0.00 6,770.81 11,503.25 26.33 254.16 8,806.36 8,684.36 -2,024.69 -6,524.18 2,509,926.97 207,185.46 0.00 6,816.43 11,503.26 26.33 254.16 8,806.37 8,684.37 -2,024.69 -6,524.18 2,509,926.97 207,185.46 0.00 6,816.43 Start Dir 5°/100' : 11503.26' MD, 8806.36'TVD 11,600.00 30.02 247.50 8,891.65 8,769.65 -2,039.81 -6,567.21 2,509,912.90 207,142.08 5.00 6,862.02 11,700.00 34.11 242.07 8,976.40 8,854.40 -2,062.53 -6,615.12 2,509,891.36 207,093.63 5.00 6,914.89 11,744.71 36.00 240.00 9,013.00 8,891.00 -2,074.98 -6,637.57 2,509,879.47 207,070.87 5.00 6,940.31 G7STSur 11,800.00 37.32 235.93 9,057.36 8,935.36 -2,092.49 -6,665.53 2,509,862.64 207,042.49 5.00 6,972.69 11,870.85 39.20 231.08 9,113.00 8,991.00 -2,118.60 -6,700.76 2,509,837.41 207,006.64 5.00 7,014.93 G7SBSur 11,900.00 40.03 229.20 9,135.46 9,013.46 -2,130.51 -6,715.02 2,509,825.85 206,992.09 5.00 7,032.52 8/812016 5:51:31 PM Page 5 COMPASS 5000.1 Build 81 Halliburton Standard Proposal Report Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Well Pfan:K-10 Company: Hilcorp Energy Company TVD Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 5) Project: Trading Bay MD Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 5) Site: King Salmon North Reference: True Well: Plan:K-10 Survey Calculation Method: Minimum Curvature Wellbore: Plan: K-10RD2 Design: K-10RD2 wp04a Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/ -S +E/ -W Northing Easting DLS Vert Section (usft) (°) (°) (usft) usft (usft) (usft) (usft) (usft) 9,039.00 11,933.60 41.02 227.11 9,161.00 9,039.00 -2,145.08 -6,731.28 2,509,811.68 206,975.47 5.00 7,052.92 HTKE-FW 11,954.78 41.66 225.84 9,176.90 9,054.90 -2,154.71 -6,741.42 2,509,802.30 206,965.10 5.00 7,065.84 End Dir : 11954.78' MD, 9176.9' TVD 11,977.94 41.66 225.84 9,194.20 9,072.20 -2,165.44 -6,752.47 2,509,791.85 206,953.80 0.00 7,080.00 11,977.95 41.66 225.84 9,194.21 9,072.21 -2,165.44 -6,752.47 2,509,791.84 206,953.79 0.00 7,080.00 Start Dir 5°/100' : 11977.95' MD, 9194.2 TVD 12,000.00 42.77 225.81 9,210.54 9,088.54 -2,175.77 -6,763.10 2,509,781.78 206,942.91 5.00 7,093.62 12,100.00 47.77 225.71 9,280.90 9,158.90 -2,225.31 -6,813.98 2,509,733.50 206,890.84 5.00 7,158.88 12,200.00 52.77 225.62 9,344.80 9,222.80 -2,279.04 -6,868.97 2,509,681.13 206,834.55 5.00 7,229.47 12,300.00 57.77 225.54 9,401.76 9,279.76 -2,336.54 -6,927.64 2,509,625.08 206,774.48 5.00 7,304.85 12,400.00 62.77 225.47 9,451.34 9,329.34 -2,397.38 -6,989.57 2,509,565.78 206,711.09 5.00 7,384.46 12,478.90 66.71 225.42 9,485.00 9,363.00 -2,447.42 -7,040.40 2,509,517.00 206,659.04 5.00 7,449.86 HKST 12,500.00 67.77 225.41 9,493.16 9,371.16 -2,461.08 -7,054.26 2,509,503.68 206,644.85 5.00 7,467.69 12,600.00 72.77 225.35 9,526.92 9,404.92 -2,527.18 -7,121.24 2,509,439.24 206,576.28 5.00 7,553.91 12,689.10 77.22 225.30 9,549.99 9,427.99 -2,587.67 -7,182.42 2,509,380.27 206,513.64 5.00 7,632.71 12,689.11 77.22 225.30 9,549.99 9,427.99 -2,587.68 -7,182.43 2,509,380.26 206,513.63 0.00 7,632.71 End Dir : 12689.11' MD, 9549.99' TVD 12,693.68 77.22 225.30 9,551.00 9,429.00 -2,590.81 -7,185.60 2,509,377.20 206,510.38 0.00 7,636.80 HK6T 12,700.00 77.22 225.30 9,552.40 9,430.40 -2,595.15 -7,189.98 2,509,372.98 206,505.90 0.00 7,642.44 12,800.00 77.22 225.30 9,574.52 9,452.52 -2,663.74 -7,259.29 2,509,306.10 206,434.92 0.00 7,731.74 12,900.00 77.22 225.30 9,596.64 9,474.64 -2,732.34 -7,328.61 2,509,239.22 206,363.94 0.00 7,821.03 13,000.00 77.22 225.30 9,618.76 9,496.76 -2,800.94 -7,397.93 2,509,172.34 206,292.97 0.00 7,910.33 13,100.00 77.22 225.30 9,640.88 9,518.88 -2,869.54 -7,467.25 2,509,105.46 206,221.99 0.00 7,999.63 13,114.10 77.22 225.30 9,644.00 9,522.00 -2,879.21 -7,477.03 2,509,096.03 206,211.98 0.00 8,012.22 H K7T 13,200.00 77.22 225.30 9,663.00 9,541.00 -2,938.13 -7,536.57 2,509,038.58 206,151.01 0.00 8,088.93 Total Depth : 13200' MD, 9663' TVD - 7" 8/8/2016 5:51:31PM Page 6 COMPASS 5000.1 Build 81 HALLIBURTON Halliburton Standard Proposal Report Database: Sperry EDM - NORTH US + CANADA Local Co-ordinate Reference: Well Plan:K-10 Company: Hilcorp Energy Company TVD Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 5) Project: Trading Bay MD Reference: K-10RD2 Plan @ 122.00usft (Kuukpik 5) Site: King Salmon North Reference: True Well: Plan:K-10 Survey Calculation Method: Minimum Curvature Wellbore: Plan: K-10RD2 Design: K-10RD2 wp04a Targets Target Name hit/miss target Dip Angle Dip Dir. TVD +N/ -S +E/ -W Northing Easting Shape (°) (°) (usft) (usft) (usft) (usft) (usft) K -10B wp04 Tgt4 0.00 0.00 9,644.00 -2,879.21 -7,477.03 2,509,096.03 206,211.98 plan hits target center Circle (radius 100.00) K -10B wp04 Tgt1 0.00 0.00 9,013.00 -2,074.98 -6,637.57 2,509,879.47 207,070.87 plan hits target center - Circle (radius 100.00) K -10B wp04 Tgt3 0.00 0.00 9,552.00 -2,593.90 -7,188.70 2,509,374.19 206,507.20 plan misses target center by 0.01usft at 12698.18usft MD (9551.99 TVD, -2593.90 N, -7188.71 E) - Circle (radius 100.00) K -10B wp04 Tgt2 0.00 0.00 9,484.00 -2,440.04 -7,031.42 2,509,524.16 206,668.20 plan misses target center by 3.86usft at 12468.00usft MD (9480.64 TVD, -2440.41 N, -7033.28 E) Circle (radius 100.00) Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (usft) (usft) Name t'7 (") 13,200.00 9,663.00 7" 7 8-1/2 -- -- Formations Measured Vertical Vertical Dip Depth Depth Depth SS Dip Direction (usft) (usft) Name Lithology (°) (°) 11,933.60 9,161.00 HTKE-FW 11,870.85 9,113.00 G7SBSur 13,114.10 9,644.00 HK7T 12,478.90 9,485.00 HK5T 11,744.71 9,013.00 G7STSur 12,693.68 9,551.00 HK6T Plan Annotations Measured Vertical Local Coordinates Depth Depth +NIS +E/ -W (usft) (usft) (usft) (usft) Comment 8,400.00 6,100.95 -1,647.23 -5,087.02 KOP: Start Dir 121/100': 8400' MD, 6100.95'TVD : 60° LT TF 8,420.00 6,114.10 -1,649.33 -5,101.95 End Dir : 8420' MD, 6114.1' TVD 8,440.00 6,127.08 -1,651.81 -5,116.96 Start Dir 41/100': 8440' MD, 6127.08'TVD 9,027.46 6,587.48 -1,724.86 -5,467.67 End Dir : 9027.46' MD, 6587.48' TVD 11,503.26 8,806.37 -2,024.69 -6,524.18 Start Dir 51/100' : 11503.26' MD, 8806.36'TVD 11,954.78 9,176.90 -2,154.71 -6,741.42 End Dir : 11954.78' MD, 9176.9' TVD 11,977.95 9,194.21 -2,165.44 -6,752.47 Start Dir 51/100' : 11977.95' MD, 9194.2'TVD 12,689.11 9,549.99 -2,587.68 -7,182.43 End Dir : 12689.11' MD, 9549.99' TVD 13,200.00 9,663.00 -2,938.13 -7,536.57 Total Depth: 13200' MD, 9663' TVD 8/812016 5:51:31PM Page 7 COMPASS 5000.1 Build 81 Hilcorp Energy Company Trading Bay King Salmon Plan:K-10 Plan: K-10RD2 K-10RD2 wp04a Sperry Drilling Services Clearance Summary Anticollision Report 08 August, 2016 Closest Approach 3D Proximity Scan on Current Survey Data (North Reference) Reference Design: King Salmon - Plan: K-10 - Plan: K-10RD2 - K-10RD2 wp04a Well Coordinates: 2,511,791.32 N, 213,757.25 E (60'51'5S.95" N, 151'36'2124"W) Datum Height: K-10RD2 Plan @ 122.00usft (Kuukpik 5) Scan Range: 8,400.00 to 13,200.00 usft. Measured Depth. Scan Radius is 1,520.00 usft . Clearance Factor cutoff Is Unlimited. Max Ellipse Separation is Unlimited Version: 5000.1 Build: 81 Scan Type: GLOBAL FILTERAPPLIED: All wellpaths within 200'+ 100/1000 of reference Scan Type: 25.00 HALLIBURTON Sperry Drilling Services HALLIBURTON Anticollision Report for Plan: K-10 - K-10RD2 wp04a Hilcorp Energy Company Trading Bay Closest Approach 3D Proximity Scan on Current Survey Data (North Reference) Reference Design: King Salmon - Plan:K-10 - Plan: K-10RD2 - K-10RD2 wp04a - - Scan Range: 8,400.00 to 13,200.00 usft. Measured Depth. Scan Radius is 1,520.00 usft. Clearance Factor cutoff is Unlimited. Max Ellipse Separation is Unlimited - Measured Minimum @Measured Ellipse @Measured Clearance Summary Based on Site Name Depth Distance Depth Separation Depth Factor Minimum Separation Warning Comparison Well Name - Wellbore Name - Design (usft) (usft) (usft) (usft) usft King Salmon K-01 - K-01 - K-01 - - K-01 - K-01 - K-01 - K-01 - K-01 - K-01 - K-01-K-01PB1-K-01PB1 - K-01-K-01PB7 -K-01 P61 - K -01-K-01 PB1-K-0I PBI - K-01 - K-01 RD2 - K-01 RD2 8,400.00 484.89 8,400.00 251.22 8,520.82 2.075 Centre Distance Pass - K-01 - K-01 RD2 - K-01 RD2 9,075.00 504.11 9,075.00 187.07 9,139.66 1.590 Ellipse Separation Pass - K-01-K-01RD2-K-OIRD2 9,125.00 509.42 9,125.00 187.88 9,181.65 1.584 Clearance Factor Pass - K -03 - K -03RD - K -03RD - = K -18-K-18- K-18 11,631.21 867.21 11,631.21 404.86 11,574.68 1.876 Centre Distance Pass - K-18 - K-18 - K-18 11,850.00 890.35 11,850.00 384.35 11,777.63 1.760 Ellipse Separation Pass - K-18 - K-18 - K-18 12,000.00 930.51 12,000.00 394.38 11,919.10 1.736 Clearance Factor Pass - K-18 - K-18RD - K-18RD 11,752.67 1,090.24 11,752.67 808.96 12,080.83 3.876 Ellipse Separation Pass - K-18 - K-18RD - K-18RD 11,775.00 1,090.43 11,775.00 809.05 12,105.70 3.875 Clearance Factor Pass - K-18 - K-18RDPB1 - K-18ROPB1 9,468.28 1,130.71 9,468.28 911.84 9,467.96 5.166 Centre Distance Pass - K -18 - K-18RDPB1 - K-18RDP81 9,725.00 1,138.77 9,725.00 906.01 9,686.55 4.892 Ellipse Separation Pass - K-18 - K-18RDPB1 - K-18RDP81 11,200.00 1,237.81 11,200.00 949.75 11,387.87 4.297 Clearance Factor Pass - K-26RD (K-08) - K-08RD - K-08RD 8,400.00 1,315.07 8,400.00 1,150.78 8,522.78 8.004 Clearance Factor Pass - K-26RD (K-08) - K-08RD - K-08RD 13,175.00 1,089.78 13,175.00 999.22 13,255.11 12.034 Ellipse Separation Pass - K-26RD (K-08) - K-08RDPBI - K-08RDPBI 9,207.37 1,085.28 9,207.37 866.83 9,510.22 4.968 Centre Distance Pass - K-26RD (K-08) - K-08RDPBI - K-OBRDPBI 9,425.00 1,087.38 9,425.00 864.97 9,736.36 4.889 Ellipse Separation Pass - K-26RD (K-08) - K-08RDPB1 - K-08RDPBI 9,875.00 1,098.63 9,875.00 871.91 10,209.06 4.846 Clearance Factor Pass - K-26RD (K-08) - K-08RDPB2 - K-08RDPB2 8,400.00 1,315.07 8,400.00 1,150.78 8,522.78 8.004 Clearance Factor Pass - Plan:K-10 - K-10 - K-10 8,700.00 18.83 8,700.00 14.13 8,677.22 4.006 Clearance Factor Pass - Plan:K-10 - K-10RD - K-10RD 8,700.00 18.84 8,700.00 15.01 8,677.21 4.921 Clearance Factor Pass - 08 August, 2016 - 17:53 Page 2 of 5 COMPASS HALLIBURTON Anticollision Report for Plan:K-10 - K-10RD2 wp04a Survey tool program From To Survey/Plan Survey Tool (usft) (usft) 122.00 8,400.00 NSG WL 8,400.00 8,750.00 K-10RD2wp04a MWD_lnterp Azi+sag 8,750.00 13,199.99 K-10RD2wp04a MWD+SC+sag Ellipse error terms are correlated across survey tool tie -on points. Calculated ellipses incorporate surface errors. Separation is the actual distance between ellipsoids. Distance Between centres is the straight line distance between wellbore centres. Clearance Factor = Distance Between Profiles / (Distance Between Profiles - Ellipse Separation). All station coordinates were calculated using the Minimum Curvature method. Hileorp Energy Company Trading Bay 06 August, 2016 - 17.53 Page 3 of 5 COMPASS HALLIBURTON Anticollision Report for Plan:K-10 - K-10RD2 wp04a Direction and Coordinates are relative to True North Reference. Vertical Depths are relative to K-10RD2 Plan @ 122.00usft (Kuukpik 5). Northing and Easting are relative to Plan K-10. Coordinate System is US State Plane 1927 (Exact solution), Alaska Zone 04. Central Meridian is -150.00% Grid Convergence at Surface is: -1.40 °. 2 51350- :3 0 LO a) Ladder Plot 2500 ____ ____+____ _________ ____1____ ____y___ I I I I I I I I Y I I I I I I I L_ _ _ _ I I I I I _ _ _ _ 1 _ _ _ _ I I I I I I I I I I I I I I I I I L--------- I L --------- I 1 _ _ - _ I _ _ _ _ 1 _ _ ----- I ___ J --------- I ____ 0 2500 5000 7500 10000 12500 Measured Depth (2500 usft/in) Hilcorp Energy Company Trading Bay $ K-07,K-07RD,K-07RDV0 $ K-09, K-09, K-09 VO $ K-09,Plan: K-09A,K-09Awp2V0 $ K-1 1 (unvalidated), K-1 1, K- 11 V0 $ K-11(unvalidaled),PIan:K-11 A,K-11Awp1V0 $ K-12(unvalidaed),K-12,K-12 V0 �F K-12(unvalldated),K-12RD,K-12RDV0 $ K-12(unvalidaled),K-12RD2,K-12RD2V0 -W K-13, K-13, K-13 VO -A- K-13,K-13RD,K-13RDV0 -0- K-13, K-13RD2, K-13RD2 VO $ K-15, K-15, K-15 VO -X- K-15,K-15RD,K-15RDV0 $ K-17, K-17, K-17 VO $ K -18,K -18,K -18V0 $ K-18,K-18RD,K-18RDV0 -1- K-18,K-18RDPB1,K-18RDPB1V0 $ K-19, K-19, K-19 VO $ K-20, K-20, K-20 VO $ K-21, K-21, K-21 VO $ K-21,K-21RD,K-21RDV0 $ K-2 1, Plan: K-21 B,K-21Bwp2V0 $ K-22, K-22, K-22 VO �f K-22,K-22PB1,K-22PB1 VO -40-- K-23, K-23, K-23 VO 08 August, 2016 - 17:53 Page 4 of 5 COMPASS HALLIBURTON Anticollision Report for Plan:K-10 - K-10RD2 wp04a Clearance Factor Plot: Measured Depth versus Separation(Clearance)Factor 11 c 1 00 .75 C .50 C .25 o0 75 50 25 Collision Avoidance Req No -Go Zone - Stop Ddlli - .- 00 icou cow .1iou w- o[oU tow WoU IUUUU 11250 1250U 1375U 15000 Measured Depth (25W usRrin) Hilcorp Energy Company Trading Bay $ K-07, K-07, K-07 VO $ K-07,K-07RD,K-07RDVO $ K-09, K-09, K-09 VO $ K-09, Plan: K -09A, K-09Avp2 V0 $ K-11(unvalidated),K-11,K-11 VO $ K-11(unvalidated),Plan: K-11A,K-11Awp1 VO -lb- K-12(unvalidalad),K-12,K-12 V0 -�i- K-1 2 (unvalidaled), K-1 2RD, K-1 2RD VO $ K-1 2 (unvalidaled), K-1 2RD2, K-1 2 RD2 VO $ K-13,K-13,K-13VO $ K-13,K-13RD,K-13RDVO $ K-13, K-13RD2, K-13RD2 VO -� K-15,K-15,K-15VO $ K-15,K-15RD,K-15RDVO $ K-17,K-17,K-17VO $ K-18, K-18, K-18 VO $ K-18,K-18RD,K-18RDVO �f- K-18,K-18RDP131,K-18RDPB1VO $ K-19,K-19,K-19VO $ K-20, K-20, K-20 VO $ K -21,K -21,K-21 VO $ K-21,K-21RD,K-21RDVO $ K-21, Plan: K-21 B,K-21Bwp2VO $ K-22, K-22, K-22 VO $ K-22,K-22PB1,K-22PB1 VO $ K-23, K-23, K-23 VO $ K-23,Plan: K-23A,K-23Awp1VO 08 August, 2016 - 17.53 Page 5 o/ S COMPASS F.ft- -/bIfI'> reoL RECEIVED STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION AUG 17 2016 APPLICATION FOR SUNDRY APPROVALS/G1� 20 AAC 25.280 0 �"' 1. Type of Request:O v Abandon ❑ Plug Perforations ❑ Fracture Stimulate ❑ Repair Well ❑ A Operations shutdown ❑ 1O� Suspend El Perforate ❑ Other Stimulate El Pull Tubing E] angeApproved Program ❑ F qo Z Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing LU her. ❑ 2. Operator Name: 4. Current Well Class: 5. Pe to Drill Number. Hilcorp aska, LLC Exploratory ❑ Development � - Stratigraphic ❑ Service ❑ 174 7 3. Address: 3800 Cen rpoint Drive, Suite 1400 6. I Number. Anchorage, K 99503 50-733-20167-01 7. If perforating: Name and Number. What Regulation or Conservation Ord governs well spacing in this pool? N/A Vrading Will planned perforations require a spaci exception? Yes ❑ No Bay Unit / K-10RD 9. Property Designation (Lease Number): 10. Field/Pool(s): ADL0018777 I McArthur River Field /Hemlock Oi and ddle Kenai G Oil Pools 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effecti a Depth MD: Effective Deck TVD: MPSP (psi): Plugs( Dr Junk (MD): 12,840 9,695 575 9,47 540 psi WA NIA Casing Length Si e - MD TVD rst Collapse Structural Conductor IF Surface 4,998' 13-3/8" 4,99' 3,877' 3,090 psi 1,540 psi Intermediate 8,898' 9-5/8" 8,898' 6,439' 6,870 psi 4,760 psi Production Liner 4,308' 7" 12,840' 9, 8,160 psi 7,020 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Si Ski Tubing Grade: Tubing MD (ft): 11,916 - 12,545 8,912 - 9,448 4-1/2" 12.6# N-80 & 9. # N 80 8,476 & 11,966 Packers and SSSV Type:Nic"T , rs and SSSV MD Baker FH Packer & Camco TRB-6 SSSV (MD) 8,901' (TVD) & 263' (MD) 263' (TVD) 12. Attachments: Proposal Summary bore schematic 13. W Class after proposed work: Detailed Operations Program ❑ BOP �Zch Explorato ❑ Stratigraphic ❑ Development Service ❑ 14. Estimated Date for 15. Well Stas after proposed work: Commencing Operations: 9/15/2016 OIL ❑ WINJ❑ WDSPL E]Suspended ❑ GAS ❑ AG E]GSTOR ElSPLUG ❑ 16. Verbal Approval: Date: Commission Representative: GI ❑ Op Shutdown ❑ Abandoned ❑ 17. 1 hereby certify that the foregoing is true and the procedur approved herein will not be deviated from without prior written approv Marlowe 907 283-1329 \tact rlowe hjlcor .com Printed Name Stan W. Golis/ Title Operations Manager Signature ` r3 P one 907 777-8356 Date g 17 ) COMMISSION USE ONLY Conditions of approval: Notify Commission so that representative may witness Sundry Number: Plug Integrity ❑ BOP Test Mechanical Integrity Test ❑ Location Clearance ❑ Other: 30CD, &a P, (y5 Post Initial Injection MIT Req'd? Yes ❑ No ❑ Spacing Exception Required? Yes ❑ No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: i A t Submit Form and Form 10-403 Revised 11/2015 nR r v d�`d r0 5 olid fOr 12 monthrom the date of approval. Attachments in Duplicate ff Hilcorp Alaska, LLC Well Work Prognosis Well: K-10rd Date: 08/17/2016 Well Name: K-10rd API Number: 50-733-20167-01 Current Status: S/I Gas -Lift Producer Leg: Leg #4 (NW corner) Estimated Start Date: September 15, 2016 Rig: Kuukpik #5 Reg. Approval Req'd? 403 Date Reg. Approval Rec'vd: Regulatory Contact: Juanita Lovett (8332) Permit to Drill Number: 174-047 First Call Engineer: Dan Marlowe (907) 283-1329 (0) (907) 398-9904 (M) Second Call Engineer: Monty Myers (907) 777-8431 (0) (907) 538-1168 (M) Current Bottom Hole Pressure: 3,638 psi @ 9,450' TVD 0.384 lbs/ft (7.41 ppg) SIBHP 12/08/2006 Maximum Expected BHP: 3,638 psi @ 9,450' TVD 0.384 lbs/ft (7.41 ppg) SIBHP 12/08/2006 Maximum Potential Surface Pressure: 2,540 psi Using 0.1 psi/ft gradient 20 AAC 25.280(b)( 4) This is a no -flow Well (01/21/2003) Brief Well Summary K-10rd is a shut-in comingled G -Zone / Hemlock gas -lifted producer. This workover will pull the current completion and plug the well for a sidetrack. Well has known 9-5/8" by 13-3/8 communication. Procedure: 1. Skid Rig into position above K-10rd. 2. Conduct AOGCC rig inspection prior to beginning plug back. 3. ND Wellhead, NU BOP and test to 250psi low/3,000psi high. (Note: Notify AOGCC 48 hours in advance of test to allow them to witness test). 6;w 4. Circulate hydrocarbons from well to production – Workover fluids will be F_ IW.`f (f 5. RIH w/ E -Line and cut tubing at ±9,000'. �—� $/fa.� 6. POOH laying down completion. 7. RIH with bit and string mill to top of liner at ±8,532', circulate clean. POOH. 8. RIH with cement retainer and set at ±8,520' a. We request a waiver to 20AAC25.112.a1c1d to set the retainer above the liner top. 9. RIH Stinging into cement retainer X51 10. RU cementing equipment and establish an injection rate with FIW. 11. Mix and pump ±148 barrels Class G cement to isolate existing completion. n -sting from retainer ��� s and circulate hole clean. POOH. Pte: �S+` �� R� 2) � ZCOZIp% 12. PU RTTS test casing starting at ±8,500' working up the hole to identify caslow ting leak pressure testing fq F `� to 1,500 psig. The 9-5/8" repairs will be conducted as needed during drill and completion of the 30i,�,,, sidetrack. 13. RU e -line and RIH w/ CIBP to ±8,400' ± CIBP 5' above casing connection. 14. RD a -line. 15. PU whipstock and mills and RIH to CIBP. 16. Orient whipstock and set at 45 degrees left of high side. ***Remaining Procedure to be included on the Permit to Drill Sundry for the sidetrack*** General sequence of operations pertaining to drilling procedure: (informational onl 17. Mill 8-1/2" window and 20' of new formation. POOH and LD mills. 18. PU directional BHA and TIH to window. 19. Swap well to 9.2 ppg oil based drilling mud / Tti,s welt wp4" deCll 2 of f 'l td x ?U b0 e w,?4 R Ivgra Cv1— pP f� pvr� u/la� AP fr7� i�idvc�rA /� C ma y ,��o� � al� Hilcorp Alaeka, LLC 20. Drill and complete new production hole. 21. Conduct 9-5/8" casing repair as needed 22. Perforate per program 23. Run new completion Attachments: 1. Well Schematic Current 2. Well Schematic Proposed 3. Wellhead Schematic Current 4. BOP Drawing 5. Fluid Flow Diagrams 6. RWO Sundry Revision Change Form Well Work Prognosis Well: K-10rd Date: 08/17/2016 Bil-p Alaska, LLC RKB =34.40' OE G -5 11,916' TD= 12,840' PBTD= 12,580' Max Deviation = 55.1° @ 7100' SCHEMATIC C a s i n e & T u 6 i n e King Salmon Platform Trading Bay Unit Well: K-10RD As Completed: 01/27/75 PTD: 174-047 API: 50-733-20167-01 Updated by J U. 08/03/16 Type Wt Grade Thrd ID Top Btm Hole Cmt Cmt Top FSize 24" Conductor Camco TRB-6 SSSV 2 2,795' 3.833" Surf 384' Driven 5,243' 3.833" 13-3/8" Surf Csg 61 K-55 3.833" 12.515 Surf 1511' 18" Calc @ 16-1/2" 655 sx Surf 355 ft' returns OV Collar 1511' 1514' 13-3/8" Surf Csg 61 K-55 Crossover, 4-1/2" x 3-1/2" 12.515 1514' 2500'± 1300 sx 2378 C (Calculated (2o% 13-3/8" Surf Csg 68 K-55 2.867" 12.415 2500'± 4998' GLM #6 - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 9 10,056' 2.867" 5.390" x 4.155" GLM #7 - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 10 10,461' 2.867" 5.390" x 4.155" WO) 9-5/8" Prod Csg 47 N-80 & Butt 8.681 Surf 8830'Tow 12- 175sx sqz perfs 8435' CBL Bad 8455'-8755' 11,519' 2.867" 5.390" x 4.155" p_110 14 11,864' 2.867" 8830'-8898' 1/4" @ 8805' Good 8755'-8788' 3.00" 5.968" BOT 47 B2 Model "FH" Retrievable Pkr w/ 30k shear ring 16 Sp Cl Butt 2.813 ____rNote: 12,200' "X" Profile Nipple Top of GS perfs are 12' below Nipple. 17 960 sxs 8964, 7" Liner 29 N-80 12,242' 6.185 8532' 12,840' 8-1/2" +175sx lap H2 12,245 12,260' 9,194' 9,207' 1 15' 4 9/10/94 w/ 2-1/8" SilverJet, 0 phase 113/4 12,285' sqz CBL Tubing 34.40 RKB to Tbg Nngr 8 7/1/84 w/ 2-1/8" BarKone 11, 0 phase: 9/10/94 w/ 2-1/8" SilverJet H3/4 12,289' 12,349' 9,232' 9,283' 4-1/2" 4 12.6 N-80 Butt 3.958 Surf 8476' 63' 8 6/11/80 w/ 2-1/8" EnerJet: 30/4/80 W/ 2-1/8" EnerJet 3-1/2" 12,290' 9.2 N-80 Butt 2.992 8476' 11,966' H3 12,290' 12,310' Updated by J U. 08/03/16 Jewelry Detail N0. Depth ID ODItem Btm (MD) 1 263' 2.813 5.917" Camco TRB-6 SSSV 2 2,795' 3.833" 7.031" x 5.625" GLM #1- 4-1/2" Camco MMG w/ R20 valve & RK Latch 3 5,243' 3.833" 7.031" x 5.625" GLM #2 - 4-1/2" Camco MMG w/ R20 valve & RK Latch 4 7,195' 3.833" 7.031" x 5.625" GLM #3 - 4-1/2" Camco MMG w/ R20 valve & RK Latch (Belly -up GLM) 5 8,444' 3.833" 7.031" x 5.625" GLM #4 -4-1/2" Camco MMG w/ R20 valve & RK Latch 6 8,476' 2.992 2/23/94 w/ 2-1/8" Strip, 45 phase Crossover, 4-1/2" x 3-1/2" 7 9,254' 2.867" 5.390" x 4.155" GLM #5 - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 8 9,655' 2.867" 5.390" x 4.155" GLM #6 - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 9 10,056' 2.867" 5.390" x 4.155" GLM #7 - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 10 10,461' 2.867" 5.390" x 4.155" GLM #8 - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 11 10,834' 2.867" 5.390" x 4.155" GLM #9 - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 12 11,178' 2.867" 5.390" x 4.155" GLM #10 - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 13 11,519' 2.867" 5.390" x 4.155" GLM #11- 3-1/2" Camco KBMG w/ 1" valve & BK Latch 14 11,864' 2.867" 5.390" x 4.155" GLM #12 - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 15 11,903'MD 11,857ELM 3.00" 5.968" BOT 47 B2 Model "FH" Retrievable Pkr w/ 30k shear ring 16 11,935'MD 11,896'ELM 2.813 ____rNote: 12,200' "X" Profile Nipple Top of GS perfs are 12' below Nipple. 17 11,966'MD 11,919'ELM 2 992 4 BOT Shear Sub / W LEG Updated by J U. 08/03/16 Perforation Details Zone Top (MD) Btm (MD) Top (TVD) Btm I (TVD) Amt spf I Comments G-5 11,916' 11,978' 8,912' 8,965' 62' 4 9/10/94 w/ 2-1/8" SilverJet, 0 phase G-5 11,934' 12,032' 8,927' 9,011' 98' 6 6/8/95 w/ 2-1/8" Enerlet, 90 phase G-5 11,970' 12,000' 8,958' 8,984' 30' 6 2/23/94 w/ 2-1/8" Strip, 45 phase G-5 12,010' 12,035' 8,992' 9,014' 25' 6 2/23/94 w/ 2-1/8" Strip, 45 phase G-6/HO 12,107' 12,117' 9,076' 9,084' 10' 8 7/1/84 w/ 2-1/8" BarKone II, o phase: 7/4/92 w/ 2-1/8" silvedet Hl 12,153' 12,163' 9,115' 9,124' 10' 4 7/1/84 w/ 2-1/8" BarKone II, 0 phase H2 12,182' 12,202' 9,140' 9,156' 20' 4 7/1/84 w/ 2-1/8" BarKone 11, 0 phase H2 12,198' 12,240' 9,154' 9,190' 42' 8 6/11/80 w/ 2-1/8" Enerjet: 10/4/80 w/ 2-1/8" Enerjet H2 12,200' 12,260' 9,156' 9,207' 60' 4 10/23/75 w/ 2" Hyperdome H2 12,200' 12,240' 9,156' 9,190' 40' 4 3/27/79 w/ 2-1/8" Enerjet H2 12,202' 12,242' 9,157' 9,191' 40' 1 7/1/84 w/ 2-1/8" BarKone II, 0 phase H2 12,245 12,260' 9,194' 9,207' 1 15' 4 9/10/94 w/ 2-1/8" SilverJet, 0 phase 113/4 12,285' 12,365' 9,228' 9,296' 80' 8 7/1/84 w/ 2-1/8" BarKone 11, 0 phase: 9/10/94 w/ 2-1/8" SilverJet H3/4 12,289' 12,349' 9,232' 9,283' 60' 4 3/26/79 w/ 2-1/8" EnerJet H3/4 12,289' 12,352' 9,232' 9,285' 63' 8 6/11/80 w/ 2-1/8" EnerJet: 30/4/80 W/ 2-1/8" EnerJet H3 12,290' 12,320' 9,233' 9,258' 30' 4 10/23/75 w/ 2" Hyperdome H3 12,290' 12,310' 9,233' 9,250' 20' 4 7/4/92 w/ 2-1/8" SilverJet, 0 phase 113/4 12,330' 12,350' 9,267' 9,284' 20' 4 7/4/92 w/ 2-1/8" SilverJet, 0 phase H4 12,375' 12,435' 9,305' 9,356' 60' 8 10/23/75 w/ 2" Hyperdome: 3/25/79 w/ 2-1/8" Enerlet H4 12,376' 12,391' 9,306' 9,318' 15' 1 1 7/1/84 w/ 2-1/8" BarKone 11,0 phase H4 12,377' 12,437' 9,307' 9,357' 60' 8 6/11/80 w/ 2-1/8" Enerlet: 10/4/80 W/ 2-1/8" Enerlet H4 12,415' 12,435' 9,339' 9,356' 20' 6/20/78 w/ DA 2" Guns H5 12,450' 12,491' 9,368' 9,403' 41' 8 1/27/75 w/ DA 2" Slimhole: 9/6/75 w/ DA 2" Slimhole HS 12,450' 12,475' 9,368' 9,389' 25' 4 9/10/94 w/ 2-1/8" Silvedet, 0 phase 12,475' 12,494' 9,389' 9,405' 19' 4 10/4/80 w/2-1/8"EnerJet H6 PH6H5 12,520' 12,545' 9,427' 9,448' 25' 8 1/24/75 w/ DA 2" Slimhole: 9/6/75 w/ DA 2" Slimhole 12,606' 12,611' 9,499' 9,503' S' 4 1 1/20/75 w/ DA 4" Casing Gun - SQUEEZED OFF 1/21/75 Updated by J U. 08/03/16 Hil-p Alaska. LLC RKB =34.40' 0; A % 4 3J%J:1$�SU: a _r TD= 12,840' PBTD= 12,580' Max Deviation = 55.1° @ 7100' PROPOSED C a s i n g & T u b 1 n g King Salmon Platform Trading Bay Unit Well: K-10RD As Completed: Future PTD: 174-047 API: 50-733-20167-01 Size Type Wt Grade Thrd ID Top Btm Hole Cmt Cmt Top 24" Conductor ±8,400' ±6,094' G-5 Surf 384' Driven ±6,175' 62' 13-3/8" Surf Csg 61 K-55 8,194' 12.515 Surf 1511' 18" Calc @ 16-1/2" 655 sx Surf 355 ft3 returns DV Collar 1511' 1514' 13-3/8" Surf Csg 61 K-55 8,952' 12.515 1514' 2500'± 1300 2378 (Calculatedw/20%w0) 6 10,461' 9,356' 2.867" 5.390" x 4.155" GLM - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 13-3/8" Surf Csg 68 K-55 5.390" x 4.155" 12.415 2500'± 4998' 10,071' sx 5.390" x 4.155" GLM - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 9 11,519' N-80 & 2.867" 5.390" x 4.155" GLM - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 8830' TOW 12- 175sx 8435' CBL 9-5/8" Prod Csg 47 p-110 Butt 8.681 Surf gg30'-8898' 1/4" sqz perfs Bad 8455'-8755' 2.813 9,154' "X" Profile Nipple Note: Top of G5 perfs are 12' below Nipple. 13 11,966'MD 11,929'ELM 10,855' 10,818' 2.992 H2 BOT Shear Sub / WLEG @ 8805' Good 8755'-8788' 9,207' 60' 4 10/23/75 w/ 2" Hyperdome Sp Cl Butt H2 12,200' 12,240' 9,156' 960 sxs 8964, 7" Liner 29 N-80 12,202' 6.185 8532' 12,840' 8-1/2" +175sx lap 7/1/84 w/ 2-1/8" BarKone 11, 0 phase _7D H2 12,245' 12,260' 9,194' 9,207' 15' 4 9/10/94 w/ 2-1/8" Silvedet, 0 phase sqz CBL Tubing 34.40' RKB to Tbg Hngr 9,228' 9,296' 80' 8 7/1/84 w/ 2-1/8" BarKone Il, 0 phase: 9/10/94 w/ 2-1/8" SilverJet c C 1-13/4 12,289' 12,349' 9,232' 9,283' 60' 4 3/26/79 w/ 2-1/8" EnerJet N H3/4 12,289' 12,352' 3-1/2" 9,285' 9.2 N-80 Butt 2.992 ±9,000' 12,290' 12,320' 9,233' 9,258' Updated by JILL 08/03/16 Jewelry Detail Perforation Details NO. Depth (MD) Depth (TVD) ID OD Item 1 ±8,400' ±6,094' G-5 CIBIP (set for whipstock) 2 ±8,520' ±6,175' 62' 4 Cement Retainer 3 9,254' 8,194' 2.867" 5.390" x 4.155" GLM - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 4 9,655' 8,559' 2.867" 5.390" x 4.155" GLM - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 5 10,056' 8,952' 2.867" 5.390" x 4.155" GLM - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 6 10,461' 9,356' 2.867" 5.390" x 4.155" GLM - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 7 10,834' 9,728' 2.867" 5.390" x 4.155" GLM - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 8 11,178' 10,071' 2.867" 5.390" x 4.155" GLM - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 9 11,519' 10,410' 2.867" 5.390" x 4.155" GLM - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 10 11,864' 10,754' 2.867" 5.390" x 4.155" GLM - 3-1/2" Camco KBMG w/ 1" valve & BK Latch 11 11,903'MD 11,857'ELM 10,793' 10,747' 3.00" 5.968" BOT 47 82 Model "F H" Retrievable Pkr w/ 30k shear ring 12 11,935'MD 11,896ELM 10,824' 10,786' 2.813 9,154' "X" Profile Nipple Note: Top of G5 perfs are 12' below Nipple. 13 11,966'MD 11,929'ELM 10,855' 10,818' 2.992 H2 BOT Shear Sub / WLEG Updated by JILL 08/03/16 Perforation Details Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt spf Comments G-5 11,916' 11,978' 8,912' 8,965' 62' 4 9/10/94 w/ 2-1/8" SilverJet, 0 phase G-5 11,934' 12,032' 8,927' 9,011' 98' 6 6/8/95 w/ 2-1/8" EnerJet, 90 phase G-5 11,970' 12,000' 8,958' 8,984' 30' 6 2/23/94 w/ 2-1/8" Strip, 45 phase G-5 12,010' 12,035' 8,992' 9,014' 25' 6 2/23/94 w/ 2-1/8" Strip, 45 phase G-6/1,10 12,107' 12,117' 9,076' 9,084' 10' 8 7/1/84 w/ 2-1/8" BarKone II, o phase: 7/4/92 w/ 2-1/8" SilverJet Hl 12,153' 12,163' 9,115' 9,124' 10' 4 7/1/84 w/ 2-1/8" BarKone II, 0 phase H2 12,182' 12,202' 9,140' 9,156' 20' 4 7/1/84 w/ 2-1/8" BarKone 11, 0 phase H2 12,198' 12,240' 9,154' 9,190' 42' 8 6/11/80 w/ 2-1/8" Enerjet: 10/4/80 w/ 2-1/8" Enerjet H2 12,200' 12,260' 9,156' 9,207' 60' 4 10/23/75 w/ 2" Hyperdome H2 12,200' 12,240' 9,156' 9,190' 40' 4 3/27/79 w/ 2-1/8" Enerjet H2 12,202' 12,242' 9,157' 9,191' 40' 1 7/1/84 w/ 2-1/8" BarKone 11, 0 phase _7D H2 12,245' 12,260' 9,194' 9,207' 15' 4 9/10/94 w/ 2-1/8" Silvedet, 0 phase 4- H3/4 12,285' 12,365' 9,228' 9,296' 80' 8 7/1/84 w/ 2-1/8" BarKone Il, 0 phase: 9/10/94 w/ 2-1/8" SilverJet c C 1-13/4 12,289' 12,349' 9,232' 9,283' 60' 4 3/26/79 w/ 2-1/8" EnerJet N H3/4 12,289' 12,352' 9,232' 9,285' 63' 8 6/11/80 w/ 2-1/8" EnerJet: 10/4/80 W/ 2-1/8" EnerJet U H3 12,290' 12,320' 9,233' 9,258' 30' 4 10/23/75 w/ 2" Hyperdome H3 12,290' 12,310' 9,233' 9,250' 20' 4 7/4/92 w/ 2-1/8" SilverJet, 0 phase H3/4 12,330' 12,350' 9,267' 9,284' 20' 4 7/4/92 w/ 2-1/8" SilverJet, 0 phase H4 12,375' 12,435' 9,305' 9,356' 60' 8 10/23/75 w/ 2" Hyperdome:3/25/79 w/ 2-1/8" EnerJet H4 12,376' 12,391' 9,306' 9,318' 15' 1 7/1/84 w/ 2-1/8" BarKone ll, 0 phase H4 12,377' 12,437' 9,307' 9,357' 60' 1 8 6/11/80 w/ 2-1/8" EnerJet: 10/4/80 W/ 2-1/8" EnerJet H4 12,415' 12,435' 9,339' 9,356' 20' 6/20/78 w/ DA 2" Guns H5 12,450' 12,491' 9,368' 9,403' 41' 8 1/27/75 w/ DA 2" Slimhole: 9/6/75 w/ DA 2" Slimhole H5 12,450' 12,475' 9,368' 9,389' 25' 4 9/10/94 w/ 2-1/8" SilverJet,0 phase HS 12,475' 12,494' 9,389 91405' 19' 125' 4 10/4/80 w/ 2-1/8" EnerJet H6 12,520' 12,545' 9,427' 9,448' 8 1/24/75 w/ DA 2" Slimhole: 9/6/75 w/ DA 2" Slimhole H6 12,606' 12,611' 1 9,499' 1 9,503' 5' 4 1/20/75 w/ DA 4" Casing Gun - SQUEEZED OFF 1/21/75 Updated by JILL 08/03/16 Schwartz, Guy L (DOA) From: Monty Myers <mmyers@hilcorp.com> Sent: Monday, August 29, 2016 2:29 PM To: Schwartz, Guy L (DOA) Subject: PTD(XXX-XX) K-10RD2 Questions Guy in response to your questions we had by phone. The K-10RDRD2 wp-04a fails on anti -collision with K-01 and K-01 pb1. Both of these wells are abandoned. The K-10RDRD2 wp-04a fails on anti -collision with K -03RD. This well is an injector and will be monitored while drilling. For the alternative MASP calculation, we have so many wells in the area that we know that there will be a lot of water and very little gas in the producing zones. The 9.2ppg I used for the unknown gas sand is strictly to introduce a conservative safety factor if there happens to be a stranded pressure zone that we encounter. This is not likely but always a concern. Monty M Myers Drilling Engineer Hilcorp Alaska Office: 907.777.8431 Cell: 907.538.1168 TRANSMITTAL LETTER CHECKLIST WELL NAME: / /3 i t . �� - 1 bRL�2. PTD: �velopment _ Service Exploratory _ Stratigraphic Test Non -Conventional FIELD: &4,4_�Up, ��`i�J' POOL://%G /1'/Q I� I�IfJ' • /'h6jJgJk 0 - Ll Check Box for Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI The permit is for a new wellbore segment of existing well Permit LATERAL No. , API No. 50- - - - (If last two digits Production should continue to be reported as a function of the original in API number are API number stated above. between 60-69) In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well Pilot Hole name ( PH) and API number (50- - - -� from records, data and logs acquired for well (name onpermit). The permit is approved subject to full compliance with 20 AAC 25.055. Approval to produce/inject is contingent upon issuance of a conservation Spacing Exception order approving a spacing exception. (Company Name) Operator assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the AOGCC must be in no greater Dry Ditch Sample than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this permit: production or production testing of coal bed methane is not allowed for Non -Conventional (name of well) until after (Company Name) has designed and Well implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the AOGCC to obtain advance approval of such water well testing program. Regulation 20 AAC 25.071(a) authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by (Company Name) in the attached application, the following well logs are also required for this well: Well Logging Requirements Per Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. Revised 2/2015 WELL PERMIT CHECKLIST Field & Pool MCARTHUR RIVER, HEMLOCK OIL - 520120 MCARTHUR RIVER, MIDKENA Well Name: TRADING BAY- UNIT K 10RD2 _---Program DEV Well bore seg ❑ PTD#: 2160990 Company HILCORP ALASKA LLC _ Initial Class/Type DEV/PEND GeoArea 820- __ Unit 12070 On/Off Shore Off Annular Disposal ❑ Administration 17 Nonconven. gas -conforms toAS31;05:030Q.1_.A),(j.2.A-D) - - - - - - - - - -- - - - - - - - - - NA_ - _ _ _ _ _ - - - - - - -- - - - - - - - -. _ - - - - - - - - - - - - - - - - _ _ _ 20 1 Perm it_ fee attached- - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - NA- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 21 2 Lease number appropriate- - - - - - - - - - - - - - - - - - - - - - - - - - -- -- Yes ADL0018777,-Surf Loc, Top Prod Intery & TD;_ADL0017594, Portion_ of Well._ _ - _ _ - - - - - - - - 3 Unique well name and number _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - - - Yes _ - - - - _ - TBU K-10RD2 - - - _ _ _ _ _ - - - _ _ _ _ - - - - - - - - - - - - - - 4 Well located in_a_ d_efined_pool- - - _ - - _ _ - _ - ------------ ---- ------ - - - - Yes - - - - --MCARTHUR RIVER,. HEMLOCK OIL - 520120 and_MCARTHUR_RIVER, MIDKENAI GAS - 520550;_governed by - - _ _ BTC cale provided and meet industry standards ------------------- 5 Well located proper distance from drilling unit -boundary- - - - - - - - - - - - - - - - - - - - - - - Yes - - _ - - - - CO 228A contains no spacing restrictions with_respect to drilling unit_ boundaries. Rig has steel pits_.._AII waste to approved disposal well_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - 6 Well located proper distance from_ other wells_ - - - - - Yes _ _ - . _ - - CO 228A has no interwell spacing restrictions._ - - - - - - - - - - - - - - - - _ _ _ _ K-10RD P &_A sundry is_316-427 - - - _ . - - - - - - - - _ _ _ _ _ _ _ _ _ _ _ _ _ . - _ - - - - - - - - - - - - - - - - 7 Sufficient acreage_available in -drilling unit_ - - - _ - - - - Yes ----- _ _ - - Close_crossing with K-01 ( plugged) and K -03RD _(_w_ill_bemonitored_during drilling)_ _ _ _ _ _ _ _ _ _ _ _ _ 8 -If deviated, Js- wellbore plat -included - - - _ - _ _ - - _ - Yes - - - -- - -- NA_ _ _ _ _ _ _ _ Wellhead in place. BOPE -will -be-used --- - _ _ - _ - - - - - - _ - - - - _ - _ - - - _ _ _ _ 9 Operator only affected party- - - - - - - - - - - - - - - - - - - _ - Yes - - _ - Wei -lb -ore -will be_ more than 500' from an external property line where ownership or landownership -changes. - _ _ _ _ Max fm -pressure 4632_psi_(9.2ppg EMW) will drill with -9-2-9.5 ppg oil base mud. - 10 Operator has -appropriate bond in force - - - - - - - - - - - - - - - - - - Yes - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Appr Date 11 Permit_can be issued without conservation order- - - - - - - - - - - - - - - - - Yes _ - - - - - - - - _ _ . _ - - - - - - - - - - - - - - - - - _ _ _ _ Alt MASP calc allowed_. MASP= 2437 psi Will test to 3500 psi _ _ - _ - - _ _ - _ 12 Permit_canbeissuedwithoutadm_inistrative_approval_--_______- -Yes___________________________________________________ - - - - - - - Yes _ - - PKB 8/22/2016 13 Can permit be approved before 15 -day wait_ - - - - - - Yes _ - - _ - - - - - - - - - - - - - - -- - - - - _ _ _ _ sundry requimd_forcompletion operations. - - _ _ _ _ - - - - - - - - - - 14 Well located within area and strata authorized by- Injection Order # (put_ IO# in -comments) -(For NA- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - _ _ _ - - - - - H2S not expected. - - - - - - - _ _ - - - - - - - _ _ _ - - - - - 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) - N_A- - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - Geologic 18 -Conductor string -provided - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - N_A-------- conductor is -set on -existing well K-1 ORD - - - _ _ _ _ _ _ _ - Engineering 19 Surface casing_ protects all_knQwnUSDWs _ _ - _ - - - - - - - NA- - _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ I_ _ _ _ __ _ _ _ _ _ _ _ _ 20 CMT_vol adequate to circulate -on conductor & surf _csg - _ . - - - - - - - - - - - . - - - NA_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 21 CMT_vol adequate- to tie -in -long string to_sud csg--------------- - - - - - - - - _ - NA- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - _ _ _ _ 22 CMTwillcoverall known_ productive horizons- - - - - - - - - - - - - - - - - - - - - - - - - - - - Yes 7"_liner will_be cemented_to 10000 ft_MD or 500 - above any hydrocarbon zones 23 -Casing designs adequate for CJ, B &_ permafrost -------- - - - - - - - - - Yes - - - - - _ _ BTC cale provided and meet industry standards ------------------- 24 Adequate tankage_or reserve pit ---------- - - _ Yes - _ Rig has steel pits_.._AII waste to approved disposal well_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - 25 -If-a- re --drill, has- a- 10-403 for abandonment been approved - - - - - - - - - - - - - - - - - - Yes _ _ _ _ _ _ _ K-10RD P &_A sundry is_316-427 - - - _ . - - - - - - - - _ _ _ _ _ _ _ _ _ _ _ _ _ . - _ - - - - - - - - - - - - - - - - 26 Adequate wellbore separation_proposed_ _ _ _ _ - _ _ Yes _ _ - _ _ - - Close_crossing with K-01 ( plugged) and K -03RD _(_w_ill_bemonitored_during drilling)_ _ _ _ _ _ _ _ _ _ _ _ _ 27 If diverter required, does it meet regulations- - - - - - - - - - - - - - - - - - - - - - - - - - -- - -- NA_ _ _ _ _ _ _ _ Wellhead in place. BOPE -will -be-used --- - _ _ - _ - - - - - - _ - - - - _ - _ - - - _ _ _ _ Appr Date 28 -Drilling fluid- program schematic_& equip -list-adequate - - - - - - - - - - - - - - - - - - - - - - - Yes _ _ _ _ _ _ _ Max fm -pressure 4632_psi_(9.2ppg EMW) will drill with -9-2-9.5 ppg oil base mud. - GLS 8/29/2016 29 BOPEs,_do they meet regulation - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - Yes _ _ - - _ - _ rig has 13 5/8" 5000 psi BOPE_ - - - - _ . _ - - - - - - - - _ - _ - _ _ _ _ - _ - - 30 BCPE_press rating appropriate; test to_(put psig in comments)- - - - - - - - - - - - - - - Yes _ _ _ _ _ _ _ Alt MASP calc allowed_. MASP= 2437 psi Will test to 3500 psi _ _ - _ - - _ _ - _ 31 Choke_manifold complies w/APL RP -53 (May 84)- - - - - - - - - - - - - - - - - - - - - - - - - - - - Yes _ - - _ - - - - _ - - - - - - - - - - - - - - - ----------------------- - 32 Work will occur without operation shutdown_ - - - - - - - - - - - - - - - - - - - - - - - - Yes _ _ _ _ _ _ _ sundry requimd_forcompletion operations. - - _ _ _ _ - - - - - - - - - - 33 As presence of H2S gas_ probable - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - N_o-------- H2S not expected. - - - - - - - _ _ - - - - - - - _ _ _ - - - - - 34 Mechanical_condition of wells within AOR verified (For service well only_) - - - - - - - - - - - - - - NA_ - _ - - - - - - - - - _ - - _ - - _ _ - - _ - - - - - - _ _ _ _ _ _ _ _ _ _ _ - - - - _ - _ - - - - - - - - - - - - - - - - - 35 -Permit can be issued w/0 hydrogen_ sulfide measures - - - - - - - - - - - - - - - - - - - - - --- NO - - -- H2 -S measures _required . - - - - ------------- - - - - -- - -- - Geology 36 Data -presented on potential overpressure zones - - - - - - - - - - - - - - - - - - - - - - - - - - - - Yes _ _ Expected reservoir pressure is 8.-3_ppg EMW; will be drilled using 9.2 to_9.5 ppgmud. - Appr Date 37 Seismic_analysis of shallow gas_zones- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - NA- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PKB 8/22/2016 38 Seabed condition survey -(if off -shore) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - NA_ - - - - - - - - - _ - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - _ 39 Contact name/phone for weekly -progress reports [exploratory only] - - - - - - - - - - - - - - NA_ - _ - . - - - Off_shore development sidetrack to be -drilled -from -King Salmon -Platform ._ _ _ _ _ _ Geologic Engineering Public 2nd well planned for Kuukpik rig. GIs Commissioner: Dt ae: Dateate Commissioner CommCissio