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HomeMy WebLinkAbout216-173Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Friday, January 18, 2019 11:05 AM To: Eller, J Gary Cc: Loepp, Victoria T (DOA); Boyer, David L (DOA) Subject: KRU 3M-14A L1, L2, L3: PTDs 216-172, 216-173, 216-174: Expired Hello Gary, The following Permits to Drill, issued to ConocoPhillips Alaska, have expired under Regulation 20 AAC 25.005 (g). The PTDs will be marked expired in the AOGCC database. • KRU 3M-14A L1, PTD 216-172, Issued 30 December 2016 • KRU 3M-14A L2, PTD 216-173, Issued 30 December 2016 • KRU 3M-14A L3, PTD 216-174, Issued 30 December 2016 If you have any questions, please contact me. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave, Anchorage, AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE. This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. THE STATE OWIN ibm GOVERNOR BILL WALKER Gary Eller Principal CTD Engineer ConocoPhillips Alaska, Inc. P.O. Box 100360 Anchorage, AK 99510-0360 Re: Kuparuk River Field, Kuparuk River Oil Pool, 3M-14AL2 ConocoPhillips Alaska, Inc. Permit to Drill Number: 216-173 Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov Surface Location: 950' FNL, 1598' FEL, Sec. 25, T13N, R8E, UM Bottomhole Location: 1266' FNL, 4395' FEL, Sec. 19, T13N, R8E, UM Dear Mr. Eller: Enclosed is the approved application for permit to re -drill the above referenced development well. The permit is for a new wellbore segment of existing well Permit No. 216-171, API No. 029- 21726-01-00. Production should continue to be reported as a function of the original API number stated above. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or an AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Cathy . Foerster Chair, Commissioner DATED thisa "aay of December, 2016. STATE OF ALASKA ALi-,oKA OIL AND GAS CONSERVATION COMMISoiON PERMIT TO DRILL %Lb 20 AAC 25.005 ECEIVED DEC 2 8 2016 1 a. Type of Work: �( Drill El Lateral LJ 1 b. Proposed Well Class: Exploratory - Gas ❑ Service - WAG ❑ Service - Disp ❑ Stratigraphic Test ❑ Development - Oil ❑� ' Service - Winj ❑ Single Zone ❑✓ • eci 1 c. Spits roposed for: Coalbed Gas ❑ Gas Hydrates ❑ Redrill E I Reentry ❑ Exploratory - Oil ❑ Development - Gas ❑ Service - Supply ❑ Multiple Zone ❑ Geothermal ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket El • Single Well ❑ 11. Well Name and Number: ConocoPhillips Alaska Inc Bond No. 59-52-180 KRU 3M-14AL2 3. Address: 6. Proposed Depth: 12. Field/Pool(s): P.O. Box 100360 Anchorage, AK 99510-0360 MD: 10250 • TVD: 6269 . Kuparuk River Field/ Kuparuk Oil Pool 4a. Location of Well (Governmental Section): Surface: 950' FNL, 1598' FEL, Sec. 25, T13N, R8E, UM , 7. Property Designation (Lease Number): ?p,3 oCsS ADL 25522 �` A Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 3964' FNL, 804' FEL, Sec. 24, T13N, R8E, UM ALK 2558 1/15/2017 Total Depth: 1266' FNL, 4395' FEL, Sec. 19, T13N, R9E, UM 9. Acres in Property: 0, 21, eO p(gy 14. Distance to Nearest Property: 5230' 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above MSL (ft): 64 15. Distance to Nearest Well Open Surface: x- 506270 y- 6016548 Zone- 4 GL Elevation above MSL (ft): 27 „ to Same Pool: 1146' to 3M-18 16. Deviated wells: Kickoff depth: 7200 feet 17. Maximum Potential Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 103 degrees . Downhole: 4728 psig Surface: 4108 psig 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVV10,250 TVD (including stage data) 3" 2.375" 4.7# L-80 ST-L 6,981 6,27 6,269 Slotted 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): 7129' 6400' 7124' 7224' 6481' 7127' Casing Length Size Cement Volume MD TVD Conductor/Structural 83' 16" 200 sx CS3 121' 121 Surface 3436' 9-5/8" 1389 sx AS III & 371 sx Class G 3473' 3377' Scab Liner 528' 4-1/2" 175 sx CS 1-1 I 7127' 6399' Production 7189' 7" 300 sx Class G & 175 sx CS I 7224' 6481' Perforation Depth MD (ft): 6940' - 6976', Reperf: 6956' - 6976' Perforation Depth TVD (ft): 6240' - 6270, Reperf: 6253' - 6270 20. Attachments: Property Plat ❑ BOP Sketch E Drilling Program ❑ Time v. Depth Plot ❑ Shallow Hazard Analysis Diverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program 20 AAC 25.050 requirements 0 21. Verbal Approval: Commission Representative: Date 12/12/2016 22. 1 hereby certify that the foregoing is true and the procedure approved herein will not Jeff Connelly @ 263-4112 be deviated from without prior written approval. Contact Email I@ff.S.COIIIIeIIV�COp.COfl1 Printed Name'k, G. Eller Title Principal CTD Engineer Signature Phone 263-4172 Date 12/12/2016 Commission Use Only Permit to Drill Number: - I � - )��i API Number: 50- Q - C� - ' - Permit Approval Date: /� �fd 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: Etr Other: Samples req'd: Yes ❑ No []� Mud log req'd: Yes ❑ No [✓j 1 �()t2 S measures: Yes [�No❑ Directional svy req'd: Yes [�No❑ I v1�k- P rz' P-�,7 �e �-zs z ►�Gl!`/Gi �ICL fp 20'�, r 2S p� �C,(�) Spacing exception req'd: Yes ElNo[� Inclination -only svy req'd: Yes❑ No[� !� Gjrq P7 te-d to Q/%v w 4ti /�/C�G fF pa io-/- f o b r- Rh Post initial injection MIT req'd: Yes El No[ (/ O�`n t Q / G �L1C APPROVED BY Approved by: P C RIYNk fHICJMMISSION Date:/2 p(A �k/a190« /.� l�tGr(6 %�%L%Z� rorfl � M 1 Submit Form and Form 10-4o1 ( evised 11/2015) This permit is valid for 24 mon f e at o approva 0 AAC 25.005(g)) Attachments in Duplicate I./ ConocoPhillips Alaska P.O. BOX 100360 ANCHORAGE, ALASKA 99510-0360 December 28, 2016 Commissioner - State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Avenue Suite 100 Anchorage, Alaska 99501 Dear Commissioner: ConocoPhillips Alaska, Inc. hereby submits applications for permits to drill a quad -lateral out of KRU 3M-14 (PTD# 187-051) using the coiled tubing drilling rig, Nabors CDR2-AC. The work may begin as soon as January 1, 2017. The CTD objective will be to drill four laterals (3M-14A, 3M-14AL1, 3M-14AL2, and 3M-14AL3), targeting the Kuparuk A -sand. The final CTD completion will fully isolate the 3M-14 mother bore, which suffers from damaged 4%" liner and rock production. There is insufficient room to properly abandon the 3M-14 mother bore with a plug or cement, so ConocoPhillips requests a variance to the requirements of 20 AAC 25.112(c) for alternate plugging which will isolate/abandon 3M-14 via swell packer and liner -top packer of the final CTD completion. To account for geological uncertainties, ConocoPhillips requests a variance from the requirements of 20 AAC 25.015 to allow the actual kick-off point of the laterals to be anywhere along the length of the parent borehole instead of being limited to 500' from the original point. Attached to this application are the following documents: — Permit to Drill Application Forms (10-401) for 3M-14A, 3M-14AL1, 3M-14AL2, and 3M-14AL3 — Sundry Application Form (10-403) for abandonment of 3M-14 — Detailed Summary of Operations — Directional Plans for 3M-14A, 3M-14AL1, 3M-14AL2, and 3M-14AL3 — Current wellbore schematic — Proposed wellbore schematic If you have any questions or require additional information, please contact me at 907-263-4172. Sincerely, Gary Eller ConocoPhi i oiled Tubing Drilling Team Lead Kuparuk CTD Laterals N4HOAS ALASKA IJ ` 3M-14A, 3M-14AL1, 3M-14AL2, and 3M-14AL3, Application for Permit to Drill Document ZpC 1. Well Name and Classification........................................................................................................ 2 (Requirements of 20 AAC 25.005(f) and 20 AAC 25.005(b))................................................................................................................... 2 2. Location Summary.......................................................................................................................... 2 (Requirements of 20 AAC 25.005(c)(2)).................................................................................................................................................. 2 3. Blowout Prevention Equipment Information................................................................................. 2 (Requirements of 20 AAC 25.005 c 3................................................................... 2 4. Drilling Hazards Information and Reservoir Pressure.................................................................. 2 (Requirements of 20 AAC 25.005(c)(4))................................................................................................................................................. 2 5. Procedure for Conducting Formation Integrity tests................................................................... 2 (Requirements of 20 AAC 25.005(c)(5)).................................................................................................................................................. 2 6. Casing and Cementing Program.................................................................................................... 3 (Requirements of 20 AAC 25.005 c 6..........................................3 7. Diverter System Information.......................................................................................................... 3 (Requirements of 20 AAC 25.005(c)(7)).................................................................................................................................................. 3 8. Drilling Fluids Program.................................................................................................................. 3 (Requirements of 20 AAC 25.005(c)(8)).................................................................................................................................................. 3 9. Abnormally Pressured Formation Information............................................................................. 4 (Requirements of 20 AAC 25.005(c)(9)).................................................................................................................................................. 4 10. Seismic Analysis............................................................................................................................. 4 (Requirements of 20 AAC 25.005(c)(10))........................................................ 4 11. Seabed Condition Analysis............................................................................................................ 4 (Requirements of 20 AAC 25.005 c 11................................................................................................... 4 12. Evidence of Bonding...................................................................................................................... 4 (Requirements of 20 AAC 25.005(c) (12))................................................................................................................................................ 4 13. Proposed Drilling Program............................................................................................................. 4 (Requirements of 20 AAC 25.005(c)(13))................................................................................................................................................ 4 Summaryof Operations...................................................................................................................................................4 LinerRunning...................................................................................................................................................................6 14. Disposal of Drilling Mud and Cuttings.......................................................................................... 6 (Requirements of 20 AAC 25.005(c)(14))............................................................................................................................................-- 6 15. Directional Plans for Intentionally Deviated Wells....................................................................... 7 (Requirements of 20 AAC 25.050 b............................................ ............................ ...................... ........................................................ 7 16. Attachments.................................................................................................................................... 7 Attachment 1: Directional Plans for 3M-14A, 3M-14AL1, 3M-14AL2, and 3M-14AL3.....................................................7 Attachment 2: Current Well Schematic for 3M-14...........................................................................................................7 Attachment 3. Proposed Well Schematic for 3M-14A, 3M-14AL1, 3M-14AL2, and 3M-14AL3.......................................7 Page 1 of 7 December 28, 2016 PTD Applicabun: 3M-14A, AL1, AL2, and AL3 1. Well Name and Classification (Requirements of 20 AAC 25.005(f) and 20 AAC 25.005(b)) The proposed laterals described in this document are 3M-14A, 3M-14AL1, 3M-14AL2, and 3M-14AL3. 2. Location Summary (Requirements of 20 AAC 25.005(c)(2)) These laterals will target the A sand package in the Kuparuk reservoir. See attached 10-401 form for surface and subsurface coordinates of the 3M-14A, 3M-14AL1, 3M-14AL2, and 3M-14AL3. 3. Blowout Prevention Equipment Information (Requirements of 20 AAC 25.005 (c)(3)) Please reference blowout prevention (BOP) schematics on file with the Commission for Nabors CDR3-AC. BOP equipment is as required per 20 AAC 25.036 for thru-tubing drilling operations. — Pipe rams, blind rams and the CT pack off will be pressure tested to 250 psi and to 4600 psi. Using the maximum formation pressure in the area of 3M-26 (i.e. 14.67 ppg EMW); the maximum potential surface pressure in 3M-14, assuming a gas gradient of 0.1 psi/ft, would be 4108 psi.'See the "Drilling Hazards Information and Reservoir Pressure" section for more details. — The annular preventer will be tested to 250 psi and 2500 psi. 4. Drilling Hazards Information and Reservoir Pressure (Requirements of 20 AAC 25.005 (c)(4)) Reservoir Pressure and Maximum Downhole Pressure (Requirements of 20 AAC 25.005 (c)(4)(a)) The formation pressure in KRU 3M-14 was measured to be 4092 psi (12.62 ppg EMW) on 11/29/2016. The maximum downhole pressure in the vicinity is 3M-26 at 4728 psi�14.67 ppg EMW) measured 7/23/2016, although we have been back -flowing 3M-26 and 3M-06 in order to reduce formation pressure in the area. Since this back -flow began in July we have seen a steady reduction in the formation pressure at 3M-14, so that we now believe the measured formation pressure in 3M-14 represents the highest pressure we expect to encounter during drilling. The lowest downhole pressure in the 31VI-14 vicinity is to the northeast in the 3Q-02 injector at 4069 psi (12.51 ppg EMW) measured 8/6/2014. Potential Gas Zones (Requirements of 20 AAC 25.005 (c)(4)(b)) MI gas injection has occurred in the area, there is the potential of encountering free gas while drilling the 3M-14 laterals. If significant gas is detected in the returns, the contaminated mud can be diverted to a storage tank away from the rig. Potential Causes of Hole Problems (Requirements of 20 AAC 25.005 (c)(4)(c)) The major expected risk of hole problems in the 3M-14 laterals will be shale instability at large fault crossings. Managed pressure drilling (MPD) will be used to reduce the risk of shale instability associated with the fault crossing. 5. Procedure for Conducting Formation Integrity tests (Requirements of 20 AAC 25.005(c)(5)) The 31VI-14 laterals will be drilled under 20 AAC 25.036 for thru-tubing drilling operations so a formation integrity test is not required. Page 2 of 7 December 28, 2016 PTD Application: 3M-14A, AL1, AL2, and AL3 6. Casing and Cementing Program (Requirements of 20 AAC 25.005(c)(6)) New Completion Details Lateral Liner Top Liner Btm Liner Top Liner Btm Liner Details Name MD MD TVDSS TVDSS 3M-14A 7500' 9,600' 6,182' 6,215' 2'/", 4.7#, L-80, ST-L slotted liner, - aluminum billet on top 3M-14AL1 7200' 9,650' 6,204' 6,200' 2W, 4.7#, L-80, ST-L slotted liner; aluminum billet on top 3M-14AL2 6,981' 10,250' 6,207' 6,206' 23/", 4.7#, L-80, ST-L slotted liner;aluminum billet on tip 3M-14AL3 6575' 10,250' 6,058 6,175' 23/", 4.7#, L-80, ST-L slotted liner; up into 3.5" tubing Existing Casing/Liner Information Category OD Weight (ppf) Grade Connection Top MD Btm MD Top TVD Btm TVD Burst psi Collapse psi Conductor 16" 62.5 H-40 Welded 38' 121' 38' 121' 1640 630 Surface 9-5/8" 36.0 J-55 BTC 37' 3473' 37' 3377' 3520 2020 Production 7" 26.0 J-55 BTC 35' 7224' 35' 6481' 4980 4330 Scab Liner 4-1/2" 12.6 L-80 IBTM 6599' 7127' 5953' 6399' 8430 7500 Tubing 3-1/2" 9.3 L-80 EUE 33' 6502' 33' 5873' 10160 10540 7. Diverter System Information (Requirements of 20 AAC 25.005(c)(7)) Nabors CDR3-AC will be operating under 20 AAC 25.036, for thru-tubing drilling operations. Therefore, a diverter system is not required. 8. Drilling Fluids Program (Requirements of 20 AAC 25.005(c)(8)) Diagram of Drilling System A diagram of the Nabors CDR3-AC mud system is on file with the Commission. Description of Drilling Fluid System — Window milling operations: Chloride -based FloVis mud (8.6 ppg) JJ — Drilling operations: Chloride -based FloVis mud (9.6 ppg expected)./This mud weight will not hydrostatically overbalance the reservoir pressure; overbalanced conditions will be maintained using MPD practices described below. — Completion operations: The well will be loaded with 13.0 ppg potassium formate completion fluid to provide formation over -balance and well bore stability while running completions. Managed Pressure Drilling Practice Managed pressure drilling (MPD) techniques will be employed to maintain a constant overbalanced pressure on the open hole formation and promote wellbore stability throughout the coiled tubing drilling (CTD) process. Mud weight is not, in many cases, the primary well control barrier. This is satisfied with the 5000 psi rated coiled tubing pack off and MPD choke. BOPE equipment provides the secondary well control as detailed in section 3 "Blowout Prevention Equipment Information". Page 3 of 7 December 28, 2016 PTD Applicatiun: 3M-14A, AL1, AL2, and AL3 In the 3M-14 laterals we will target a constant BHP of 12.8 ppg EMW at the window. The constant BHP target will be adjusted through choke pressure and/or mud weight increases to maintain overbalanced conditions if increased reservoir pressure is encountered. Additional choke pressure or increased mud weight may also be employed for improved borehole stability. Any change of circulating friction pressure due to change in pump rates or change in depth of circulation will be offset with back pressure adjustments. Pressure at the 3M-14 Window (6931' MD, 6232' TVD) Using MPD Pumps On (1.5 bpm) Pumps Off A -sand Formation Pressure (12.6 pp) 4083 psi 4083 psi Mud Hydrostatic 9.6 3111 psi 3111 psi Annular friction i.e. ECD, 0.080 psi/ft) 555 psi 0 psi Mud + ECD Combined (no choke pressure) 3666 psi (underbalanced —420psi) 3111 psi (underbalanced —970 psi) Target BHP at Window 12.8 p ) 4148 psi 4148 psi Choke Pressure Required to Maintain Target BHP 480 psi 1040 psi 9. Abnormally Pressured Formation Information (Requirements of 20 AAC 25.005(c)(9)) N/A - Application is not for an exploratory or stratigraphic test well. 10. Seismic Analysis (Requirements of 20 AAC 25.005(c)(10)) N/A - Application is not for an exploratory or stratigraphic test well. 11. Seabed Condition Analysis (Requirements of 20 AAC 25.005(c)(11)) N/A - Application is for a land based well. 12. Evidence of Bonding (Requirements of 20 AAC 25.005(c)(12)) Evidence of bonding for ConocoPhillips Alaska, Inc. is on file with the Commission. 13. Proposed Drilling Program (Requirements of 20 AAC 25.005(c)(13)) Summary of Operations Background KRU 3M-14 is a Kuparuk A -sand production well that was worked over to install 4%" scab liner to remediate rock production from the perfs, but it didn't take long for the 41/" scab liner to become damaged and rock production to resume so that the well is still not capable of production. Four CTD laterals will be drilled from the 3M-14 parent well -bore, two to the south and two to the north, to serve as a replacement wellbore and isolate section producing rocks. The mother completion will be isolated/abandoned using a 2W swell packer and liner top packer— insufficient room exists to plug the mother completion with cement or a mechanical plug. ConocoPhillips requests a variance to the requirements of 20 AAC 25.112(c) for the alternate plugging method which will not risk migration of fluids between strata. Page 4 of 7 December 28, 2016 PTD Application: 3M-14A, AL1, AL2, and AD The 3M-14A lateral will exit through the 4%2" scab -liner and 7" casing via whipstock at 6931' MD and TD at 9600' MD, targeting the Al sands. It will be completed with 2%" slotted liner from TD up to 7500' MD with an aluminum billet for kicking off the 3M-14AL1 lateral. The 3M-14AL1 lateral will drill south to a TD of 9650' MD targeting the A2 sands. It will be completed with 2%" slotted liner from TD up to 7200' MD with an aluminum billet for kicking off the 3M-14AL2 lateral. / The 3M-14AL2 lateral will drill north to a TD of 10250' MD targeting the Al sand. It will be completed with 2%" slotted liner from TD up to 6981' MD with an aluminum billet for kicking off the 3M-14AL3 lateral. The 3M-14AL3 lateral will drill north to a TD of 10250' MD targeting the Al sands. It will be completed with 2%" slotted liner from TD up to —6575' MD up into the 3.5" tubing. A 2%" swell packer and a 3%" liner -top packer will be used along with blank 2%" liner to isolate/abandon the original 3M-14 completion, mitigating against future rock production. Pre-CTD Work 1. RU Slickline: Obtain static bottom -hole pressure 2. RU E-line: Drift tubing and tag fill/rocks at 6954' MD 3. RU E-line: Set Baker Hughes whipstock at 6931' MD. 4. Prep site for Nabors CDR3-AC, including setting BPV. Rig Work 1. MIRU Nabors CDR2-AC rig using 2" coil tubing. NU 7-1/16" BOPE, test. 2. 3M-14A Lateral (A sand- south) a. Mill 2.80" window at 6931' MD. b. Drill 3" bi-center lateral to TD of 9600' MD. c. Run 2%" slotted liner with an aluminum billet from TD up to 7500' MD. 3. 3M-14AL1 Lateral (A sand- south) a. Kickoff of aluminum billet at 7500' MD. b. Drill 3" bi-center lateral to TD of 9650' MD. c. Run 2%" slotted liner from TD up to 7200' MD. 4. 3M-14AL2 Lateral (A sand - north) a. Kick off of aluminum billet at 7200' MD. b. Drill 3" bi-center lateral to TD of 10250' MD. c. Run 2%" slotted liner from TD up to 6981' MD. 5. 3M-14AL3 Lateral (A sand - north) a. Kickoff of aluminum billet at 6981' MD. b. Drill 3" bi-center lateral to TD of 10250' MD. c. Run 2%" slotted liner from TD up to 6575' MD. Liner will include a swell packer, blank 2%" liner, and a sealbore deployment sleeve to isolate/abandon the mother completion. 6. Freeze protect. Set BPV, ND BOPS. RDMO Nabors CDR2-AC. Page 5 of 7 December 28, 2016 PTD Application: 3M-14A, AL1, AL2, and AL3 Post -Rig Work 1. Pull BPV. 2. Obtain SBHP. 3. Install liner -top packer onto the 2%" liner 4. Install GLV's. 5. Return to production. Pressure Deployment of BHA The planned bottom hole assemblies (BHAs) are too long to simply isolate by closing the double swab valves on the Christmas tree. MPD operations require the BHA to be lubricated under pressure, so installed in this well is a deployment valve. This valve, when closed using hydraulic control lines from surface, isolates the well pressure and allows long BHA's to be deployed/un-deployed without killing the well. If the deployment valve fails, operations will continue using the standard pressure deployment process. A system of double swab valves on the Christmas tree, double deployment rams, double check valves and double ball valves in the BHA, and a slick -line lubricator can be used. This pressure control equipment listed ensures there are always two barriers to reservoir pressure, both internal and external to the BHA, during the deployment process. During BHA deployment, the following steps are observed. — Initially the double swab valves on the tree are closed to isolate reservoir pressure. The lubricator is installed on the BOP riser with the BHA inside the lubricator. — Pressure is applied to the lubricator to equalize across the swab valves. The swab valves are opened and the BHA is lowered in place via slickline. — When the BHA is spaced out properly, the double deployment rams are closed on the BHA to isolate reservoir pressure via the annulus. A closed set of double ball valves and double check valves isolate reservoir pressure internal to the BHA. Slips on the double deployment rams prevent the BHA from moving when differential pressure is applied. The lubricator is removed once pressure is bled off above the deployment rams. — The coiled tubing is made up to the BHA with the double ball valves plus the double check valves in the closed position. Pressure is applied to the coiled tubing to equalize internal pressure and then the double ball valves are opened. The injector head is made up to the riser, annular pressure is equalized, and the deployment rams are opened. The BHA and coiled tubing are now ready to run in the hole. During BHA undeployment, the steps listed above are observed, only in reverse Liner Running — The 31VI-14 laterals will be displaced to an overbalanced fluid prior to running liner. See "Drilling Fluids" section for more details. — While running 2%" slotted liner, a joint of 23/" non -slotted tubing will be standing by for emergency deployment. A floor valve is made up onto this joint ahead of time, and the rig crew conducts a deployment drill with this emergency joint on every slotted liner run. The 2%" rams will provide secondary well control while running 2%" liner. 14. Disposal of Drilling Mud and Cuttings (Requirements of 20 AAC 25.005(c)(14)) • No annular injection on this well. • All solid waste will be transported to the grind and inject facility at DS-4 Prudhoe Bay for disposal. • Incidental fluids generated from drilling operations will be injected in a Kuparuk Class II disposal well (1R-18 or 1 B disposal facilities) or Prudhoe DS-4 if a Kuparuk facility is unavailable. Page 6 of 7 December 28, 2016 PTD Applicabun: 3M-14A, AL1, AL2, and AB • All wastes and waste fluids hauled from the pad must be properly documented and manifested. • Contact Kuparuk Environmental Coordinator for questions regarding waste classification. (670-4200). 15. Directional Plans for Intentionally Deviated Wells (Requirements of 20 AAC 25.050(b)) — The Applicant is the only affected owner. — Please see Attachment 1: Directional Plan — Magnetic and inclination surveys will be taken every 30 ft. No gyro will be run. — MWD directional, resistivity, and gamma ray will be run over the entire open hole section. — Distance to Nearest Property Line (measured to KPA boundary at closest point) Lateral Name Distance 3M-14A 6800' 3M-14AL1 6800' 3M-14AL2 5230' 3M-14AL3 5230' — Distance to Nearest Well within Pool Lateral Name Distance Well 3M-14A 1879' 3M-18 3M-14AL1 1879' 3M-18 3M-14AL2 1146' 3M-18 3M-14AL3 1146' 3M-18 16. Attachments Attachment 1: Directional Plans for 3M-14A, 3114-14AL1, 3M-14AL2, and 3114-14AL3 Attachment 2: Current Well Schematic for 3114-14 Attachment 3: Proposed Well Schematic for 3114-14A, 3M-14AL1, 3M-14AL2, and 3M-14AL3 Page 7 of 7 December 28, 2016 ConocoPhillips ConocoPhillips (Alaska) Inc. -Kup2 Kuparuk River Unit Kuparuk 3M Pad 3M-14 3M-14AL2 Plan: 3M-14AL2_wp06 Standard Planning Report 08 December, 2016 BAKER HUGHES ConocoPhillips Database: EDM Alaska NSK Sandbox Company: ConocoPhillips (Alaska) Inc. -Kup2 Project: Kuparuk River Unit Site: Kuparuk 3M Pad Well: 3M-14 Wellbore: 3M-14AL2 Design: 3 M-14A L2_wp 06 ConocoPhillips Planning Report Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Well 3M-14 Mean Sea Level 3M-14 @ 63.00usft (3M-14) True Minimum Curvature Project Kuparuk River Unit, North Slope Alaska, United States Map System: US State Plane 1927 (Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927 (NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Using geodetic scale factor ri.l BAKER HUGHES Site Kuparuk 3M Pad Site Position: Northing: 6,016,202.17usft Latitude: 700 27' 19,780 N From: Map Easting: 506,126.99usft Longitude: 1490 56' 59.998 W Position Uncertainty: 0.00 usft Slot Radius: 0.000in Grid Convergence: 0.05 ° Well 3M-14 Well Position +N/-S 0.00 usft Northing: 6,016,548.62 usft Latitude: 70° 27' 23.186 N +E/-W 0.00 usft Easting: 506,270.30 usft Longitude: 1490 56' 55.779 W Position Uncertainty 0.00 usft Wellhead Elevation: usft Ground Level: 0.00 usft Wellbore 3M-14AL2 Magnetics Model Name Sample Date Declination Dip Angle Field Strength BGGM2016 3/1/2017 17.72 81.00 57,547 Design 3M-14AL2_wp06 Audit Notes: Version: Phase: PLAN Tie On Depth: 7,200.00 Vertical Section: Depth From (TVD) +N/-S +E/-W Direction (usft) (usft) (usft) (°) -26.40 0.00 0.00 30.00 121812016 5:31:16PM Page 2 COMPASS 5000.1 Build 74 ConocoPhillips rigs ConocoPhillips Planning Report BAKER HUGHES Database: EDM Alaska NSK Sandbox Local Co-ordinate Reference: Well 3M-14 Company: ConocoPhillips (Alaska) Inc. -Kup2 TVD Reference: Mean Sea Level Project: Kuparuk River Unit MD Reference: 3M-14 @ 63.00usft (3M-14) Site: Kuparuk 3M Pad North Reference: True Well: 3M-14 Survey Calculation Method: Minimum Curvature Wellbore: 3M-14AL2 Design: 3M-14AL2_wp06 Plan Sections Measured TVD Below Dogleg Build Turn Depth Inclination Azimuth System +N/-S +E/-W Rate Rate Rate TFO (usft) (1 (°) (usft) (usft) (usft) (°/100ft) (°/100ft) (°/100ft) (°) 7,200.00 102.57 64.95 6,212.64 2,444.32 886.47 0.00 0.00 0.00 0.00 7,300.00 96.49 61.43 6,196.09 2,488.79 974.42 7.00 -6.08 -3.52 210.00 7,400.00 89.59 62.64 6,190.79 2,535.58 1,062.57 7.00 -6.89 1.21 170.00 7,650.00 85.15 45.70 6,202.34 2,681.15 1,264.29 7.00 -1.78 -6.78 255.00 7,750.00 86.39 38.79 6,209.73 2.754.93 1,331.29 7.00 1.25 -6.91 280.00 7,950.00 93.42 26.67 6,210.05 2,922.76 1,439.16 7.00 3.51 -6.06 300.00 8,150.00 95.73 12.82 6,194.01 3,109.91 1,506.39 7.00 1.15 -6.93 280.00 8,250.00 93.30 6.23 6,186.12 3,208.16 1,522.87 7.00 -2.43 -6.59 250.00 8,350.00 86.30 6.23 6,186.46 3,307.51 1,533.72 7.00 -7.00 0.00 180.00 8.550.00 86.41 20.26 6,199.22 3,501.30 1,579.34 7.00 0.05 7.01 90.00 8,650.00 92.48 23.76 6,200.19 3,593.95 1.616.80 7.00 6.07 3.50 30.00 8,750.00 85.48 23.76 6,201.97 3,685.41 1,657.05 7.00 -7.00 0.00 180.00 8,850.00 92.48 23.76 6,203.75 3,776.86 1,697.31 7.00 7.00 0.00 0.00 8,950.00 92.46 30.76 6,199.43 3,865.61 1,743.04 7.00 -0.02 7.01 90.00 9,050.00 92A4 23.76 6,195.15 3,954.37 1,788.78 7.00 -0.02 -7.01 270.00 9.150.00 91.82 16.78 6,191.43 4,048.05 1,823.38 7.00 -0.63 -6.98 265.00 9,450.00 88.13 37.46 6,191.56 4,313.58 1,959.37 7.00 -1.23 6.89 100.00 9,550.00 90.53 30.88 6,192.73 4,396.26 2,015.50 7.00 2.40 -6.58 290.00 9,650.00 90.53 37.88 6,191.80 4,478.73 2,071.93 7.00 0.00 7.00 90.00 9,750.00 89.31 30.99 6.191.94 4,561.15 2,128.45 7.00 -1.22 -6.89 260.00 9,950.00 88.12 44.94 6,196.44 4,718.40 2,251.15 7.00 -0.59 6.96 95.00 10,250.00 88.25 23.93 6,206.04 4,964.31 2,419.76 7.00 0.04 -7.00 270.00 Target 121812016 5:31:16PM Page 3 COMPASS 5000.1 Build 74 ConocoPhillips ConocoPhillips (Alaska) Inc. -Kup2 Kuparuk River Unit Kuparuk 3M Pad 3M-14 3M-14AL2 3M-14AL2_wp06 Travelling Cylinder Report 08 December, 2016 we pp-_ 'A as BAKER NUGHES *. Baker Hughes INTEQ rigs ConocoPhillips Travelling Cylinder Report BAKER HUGHES Company: ConocoPhillips (Alaska) Inc. -Kup2 Project: Kuparuk River Unit Reference Site: Kuparuk 3M Pad Site Error: 0.00 usft Reference Well: 3M-14 Well Error: 0.00 usft Reference Wellbore 3M-14AL2 Reference Design: 3M-14AL2_wp06 Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Output errors are at Database: Offset TVD Reference: Well 3M-14 3M-14 @ 63.00usft (3M-14) 3M-14 @ 63.00usft (3M-14) True Minimum Curvature 1.00 sigma OAKEDMP2 Offset Datum Reference 3M-14AL2_wp06 Filter type: GLOBAL FILTER APPLIED: All wellpaths within 200'+ 100/1000 of reference Interpolation Method: MD Interval 25.00usft Error Model: ISCWSA Depth Range: 7,200.00 to 10,250.00usft Scan Method: Tray. Cylinder North Results Limited by: Maximum center -center distance of 1,221.34 usft Error Surface: Elliptical Conic Survey Tool Program Date 12/812016 From To (usft) (usft) Survey (Wellbore) Tool Name Description 100.00 6,900.00 3M-14 (3M-14) BOSS -GYRO Sperry -Sun BOSS gyro multishot 6,900.00 7,200.00 3M-14A_wpO6 (3M-14A) MWD MWD - Standard 7,200.00 10,250.00 3M-14AL2_wp06 (3M-14AL2) MWD MWD - Standard Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (usft) (usft) Name 3,489.00 3,389.72 9 5/8" 9-5/8 12-1/4 10,250.00 6,269.04 2 3/8" 2-3/8 - 3 Summary Site Name Offset Well - Wellbore - Design Kuparuk 3M Pad 3M-02 - 3M-02 - 3M-02 3M-05 - 3M-05 - 3M-05 3M-06 - 3M-06 - 3M-06 3M-13 - 3M-13 - 3M-13 3M-14 - 3M-14A - 3M-14A_wp06 3M-14 - 3M-14AL1 - 3M-14AL1_wp03 3M-14 - 3M-14AL3 - 3M-14AL3_wp00 3M-16 - 3M-16 - 3M-16 3M-17 - 3M-17 - 3M-17 3M-18 - 3M-18 - 3M-18 3M-26 - 3M-26 - 3M-26 Reference Offset Centre to No -Go Allowable Measured Measured Centre Distance Deviation Warning Depth Depth Distance (usft) from Plan (usft) (usft) (usft) (usft) Out of range Out of range Out of range Out of range 7,200.00 7,200.00 0.00 0.31 -0.22 FAIL - Minor 1/10 7,208.61 7,200.00 8.36 0.86 7.58 Pass - Minor 1/10 7,223.73 7,225.00 8.22 0.74 7.60 Pass- Minor 1/10 Out of range Out of range 9,300.00 7,775.00 1,149.08 305.14 853.81 Pass - Major Risk Out of range Offset Design Kuparuk 3M Pad - 3M-14 - 3M-14A - 3M-14A_wp06 Onset site Error: 0.00 usft Survey Program: 100-BOSS-GYRO, 6900-MWD Rule Assigned: Minor 1/10 Offset Well Error: 0.00 usft Reference Offset Semi Major Axis Measured Vertical Measured Vertical Reference Offset Toolface + Offset Wellbore Centre Casing - Centre to No Go Allowable Warning Depth Depth Depth Depth Azimuth +N/S +E/-W Hole Size Centre Distance Deviation (usft) (usft) (usft) (usft) (usft) (usft) (°) (usft) (usft) (') (usft) (usft) (usft) 7,200.00 6,275.64 7,200.00 6,275,64 0,00 0.00 64.95 2,444,32 886.47 2-11/16 0,00 0.31 -0.22 FAIL- Minor 1/10, CC, ES, SF 7,209.89 6,273.54 7,675.00 6,246,89 0.02 0,50 150.41 2,109.27 1,050.04 2-11116 373,79 1.54 373,03 Pass -Minor 1/10 7,221,47 6,271.21 7,650.00 6,246,77 0,04 0,50 150,14 2,133.84 1,054.61 2-11/16 353.45 1.49 352,64 Pass - Minor 1/10 7,224.80 6,270.56 7,225.00 6,270.33 0,05 0.05 148,97 2,452.38 909,49 2-11/16 2.64 0.55 2.20 Pass -Minor 1/10 7,232.86 6,269.05 7,625.00 6,246.60 0.07 0.49 149.84 2,158.55 1,058.42 2-11/16 332.79 1.46 331.94 Pass - Minor 1/10 7,244.03 6,267,07 7,600.00 6,246.37 0.09 0.49 149.52 2,183.36 1,061.49 2-11/16 311.83 1,43 310.95 Pass - Minor 1/10 7,248.40 6,266,33 7,250,00 6,265.28 0.10 0,10 147.43 2,455.70 933.70 2-11/16 10.45 0.70 9.88 Pass -Minor 1/10 CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min ellipse separation 121812016 3:42:43PM Page 2 COMPASS 5000.1 Build 74 N t O o � R J b Q a c o N ¢ � O O b o b N � � O o . � M _ O c � O I oon Sol Z'IVb I -W£ T O � p („ F, a3 v m � 0 v o J J= Q k l O O C My op po Q M a � o N to o £01 Z'ry [-W£ .-- O O O v 0 O � N V V a � ON o00 V O b O o00 V O a b (-I/gsn OOb6N/(-TgTnoS O u O N � o (V V O � p w H � o a c O Y c J C n- O O (V c2 (n (a0 m O 00m����� �.-a-a-a-N 0 O � O � p U O W O�o cl � Lfi Lei d'd'�oi M >m�'N �[] �tO d'MMNN Ne-��`-+-���70 -p Z 4] m r O O N d' ((') (O G O m O N M d� I Z a 0 m O N A p w N N N N M M M M M M M d' d' d' r d' d''ct � � ( IO ZIV I-W£ N m N O O O O O O O O O O O o 0 0 0 00 0 0 0 0 0 = � @� 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 J N LL O00 u C) OOO p 000 C] OO t(] 0000 (n0 i m ~ N N N cO7 N N m M e 0 m 1 (D O m m (O m 1 M C`") m o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o O o O O o o Q I Tp °O N O O O O O O O o 0 0 0 0 0 0 0 0 0 0 0 0 0 o N 0 1, Nrl- m m (D m 1 N d' O (n d' e 0 o O 1 O M (O (O ^ o 0 d' d' L l] N N M C O 1- M e 0 O M O 1` M M l A m d' - 1% _ ? 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Wellbore APIIU WI Field Name Wellbore Status n 500292172600 KUPARUK RIVER UNIT PROD i C) MD (ftKB) Act 35.63 5,800.00 Btm (kKB) 7,244.0 Comment 112S (ppm) Date 0SSV: NIPPLE 125 4/4/2013 Annotation End Date Last WO: 12/19/2012 KB-Grd tft) Rig Release Date 41.90 6/5/1987 3M-14,3l3120169:22.54AM Vertical schematic(actual) Annotation Depth (ftKB) End Date Annotation Last Mod By End Date -....._.. ....... ". Last Tag: SLM 6,926.0 3/30/2016 Rev Reason: TAG lehallf 3/3112016 HANGER, 32 8 Casing Strings Casing Description OD (in) ID (in) Top (ftKB) Set Depth (ftKB) Set Depth (ND)... WtlLen (I... Grade Top Thread CONDUCTOR 16 15.062 38.0 121.0 121.0 62.58 H-40 welded Casing Description OD (in) ID (in) Top (ftKB) Set Depth (ftKB) Set Depth (ND)... WtlLen (I... Grade Top Thread CONDUCTOR; 386121.0 SURFACE 95/8 8.921 37.0 3,473.1 3,376.7 36.00 J-55 BTC Casing Descri ption OD (in) ID (in) Top(ftK8 Set Depth SDepth(ftKB) Set Depth(ND)... WVLen(I... Grade Top Thread PRODUCTION 7 6.276 34.8 7,224.0 6,481.2 26.00 J-55 BTC Casing Description OD (in) ID (in) Top (ftKB) Set Depth (ftKB) Set Depth (ND)... WtlLen (I... Grade Top Thread NIPPLE; 541.7 SCAB LINER 412 3.958 6'598.8 7,127.0 6,398.5 12.60 L-80 IBTM Liner Details Nominal ID Top (ftKB) Top (ND) (ftKB) Top Incl (°) Item Des Com (in) 6,598.8 5,953.3 33.55 PACKER Baker "2RH" ZXP Liner Top Packer w/ 10' Tie -back 4.300 GAS LIFT; 2,523.3 Ext, 5" BTC BxP 6,617.4 5,968.8 33.47 HANGER BAKER HYDRUALIC FLEX -LOCK LINER HANGER 4.400 6,627.2 5,977.0 33.42 SBE Baker 80-40 SBE, 20' Lang, 5" BTC 4.000 Tubing Strings Tubing Description String Ma... ID (in) Top (ftKB) Set Depth (2% Set Depth (ND) (... Wt pbm) Grade Top Connection SURFACE; 37.0-3.473.1- TUBING WO 312 2-992 328 6,502.4 5,873.0 9.30 L-80 EUE Completion Details GAS LIFT; 4,115.1 Top (ftKB) Top (ND) (ftKB) Top Incl (°) Item Des Co. Nominal ID tin) 32.8 32.8 0.04 HANGER FMC, GEN IV Tbg hanger w/ 3 1/2" TBG Pup. 2.992 541.7 541.7 0.31 NIPPLE 2.875" Landing Nipple w/'DS'Profle 2.875 6,479.71 5,854.1 33.74 SEAL ASSY Baker 8040 GBH-22 Production Seal Assembly 2.990 GAS LIFT; 5,272.2 Tubing Description String Ma... IF(in) Top (ftKB) Set Depth (ft.. Set Depth (ND) (..- Wt gbkt) Grade Tap Connection PACKER ASSY 3.98 2.980 6,486.2 6,643.5 "'I) EUE Completion Details Nominal ID Top (ftKB) Top (TVD) (ftKB) Top Ind (°) Item Des Com (in) GAS LIFT 6,1-132 6,486.2 5,859.5 33.70 PBR BAKER PER 4.000 6,509.3 5,878.7 33.62 PACKER BAKER'FHU PACKER 2.980 6,559.8 5,920.8 33.58 NIPPLE CAMCO 2.812" Landing Nipple w/'DS' Profile 2.812 6,605.6 5,959.0 33.52 SEAL ASSY BAKER 80-40 GBH-22 Production Seal Assembly w/ 2-ft 2.980 GAS LIFT; 6,423.2 Space out Other In Hole (Wireline retrievable plugs, valves, pumps, fish, etc.) Top (ND) Top Incl Top (ftKB) (ftKB) (°) Des Co. Run Date ID (in) 7,127.0 6,398.5 31.50 FISH ESP motor parts, remnants of ESP motor pushed 12/32012 downhole to 7127 RKB wtworkover 12/32012 - SEAL ASSY; 6,479.7 PBR; 6,486.2 should be fill to 7244' drillers TO (FRAC or formation sand) 6/10/2005 - ESP motor parts, remnants of ESP motor pushed downhole to 7010 w/workover PACKER; 6,509.3 6/102006 Perforations & Slots Shot Dens Top(TVD) Btm(TVD) (shotsrf NIPPLE; 6,559.E Top (ftKB) Btm (ftKB) (ftKB) (ftKB) Zone Date t) Type Co. 6,940.o 6,942.0 6,239.8 6,241.4 A-2, 3M-14 8/16/1987 1.0 CMT Covered by CMT Scab SQZ liner 2012 6,944.0 6,945.0 6,2411 6,244.0 A-2, 3M-14 8/16/1987 1.0 CMT Covered by CMT Scab ® SQZ liner 2012 ® 6,948.0 6,949.0 6,246.5 6,247.4 A-2, 3M-14 8/16/1998 1.0 CMT SQZ Covered liner by CMT Scab 2012 SEAL ASSY; 6,605.E 6,954.0 6,992.0 6,251.6 6,283.7 A-1,3M-14 8/16/1987 4.0 CMT Covered by CMT Scab SQZ liner 2012 6,956.0 6,976.0 6,253.3 6,270.2 A-1,3M-14 2.0 RPERF HSC 2.5"w/180 degree 12/2112013 phasing, Millenium II HMX charges Cement Squeezes CMT SOZ; 6,940.Ob,942.0- Top (ftKB) St. (ftKB) Top (ND) (kKB) Elm (ND) (kKB) Des Start Data Com 6,598.81 7,127.01 5,9b3.31 6,398.5 1 Liner Cement 1121lr2U12 CMT SQZ: 6,944.OE,9450- Mandrel Inserts St CMT SQZ; 6,948.0-6.949.0- ati N Top (ftKB) 7op (ftKB) ) Make Model OD in ( ) Valve Se" Type- ype Latch Type Port Size (in) TRO Run (psi) Run Date Com 2,523.3 2,520.6 Camm MMG 1 112 GAS LIFT GLV R-20 0.188 1,270.0 5/222013 10:00 2 4,115.1 3,905.6 Camco MMG 1 1/2 GAS LIFT GLV R-20 0.188 1,268.0 5/222013 5:00 RPERF; 6,956.0-6,976.0 CMT SQZ; 6,95,i M.9920- 3 5,272.2 4,863.3 Camco MMG 11/2 GAS LIFT GLV R-20 0.188 1,277.0 51=013 7:00 4 6,113.2 5,551.4 Camco MMG 11/2 GAS LIFT OV RD02 0.250 0.0 5222013 1:00 0 5 6,423.2 5,807.2 1 Camco MMG 1 1 1/2 GAS LIFT I DMY RK 1 0.000 0.0 12/17/2012 6:30 Notes: General & Safety End Date Annotation 7/2/2006 NOTE: WORKOVER 728/2006 NOTE: PER CALIPER LOG 6/27/2006, SEVERE 7" CASING DAMAGE @ 6942'-6946' 8/17/2006 NOTE: RECOVERED ROCKS TO 1.5" DURING TAG 7/21/2008 NOTE: SAND & PEBBLES OBSERVED a@ 6930' 10/10/2010 NOTE: View Schematic w/ Alaska Schematic9.0 SCAB LINER; 6,598.8&7,127.0 FISH; 7,127.0 12/19/2012 NOTE: WORKOVER SET CEMENTED 4.5" SCAB LINER TO COVER 7" PROD CSG DAMAGE PRODUCTION; 34.8-7,224.0 3 II ❑ CD CD LO II Il _ ❑ n I I J II `� ❑ ._ M m II 0 r b.0 _ d ❑ p N r '-0 N J Q Uj O LOm Q O C N g� MaN V In c M N ❑ `� // m N 0.' m C E0 ❑ N \ a � Y `er° N I� 0. 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(/J d Lr J (O OV Q�0. mOV d O C� V' M II N r m O O CO Q N°if ln0.LL n0 N.0 00 m O N O C U Y Y Y C Y r a N Y �"' N l6 `0 0 - 61 m CL O cn mmm �m vNLLM v Y c dam = /` II L9 C, II E N013 11 II a of m Il ll U ca E U m 6) Y or l6 V (6 to .t 0. ❑ .a ❑ N p �v ❑ aCD CD V m <�7 "O -O � N c$ Cto N❑ �M N� N� II II NO m� ° Qco Qcn v❑CL 3❑a C N @ C N d -0 LO r LO II II cc)0.N( O r N M O N N d If C w II II L m Z Qa p d c: II II Cc M J Loepp, Victoria T (DOA) From: Loepp, Victoria T (DOA) Sent: Wednesday, December 28, 2016 10:34 AM To: Eller, J Gary Cc: Bettis, Patricia K (DOA) Subject: RE: KRU 3M-14 (187-051) CTD Sidetrack Thanx for the heads up - From: Eller, J Gary [mailto:J.Gary.Eller@conocophillips.com] Sent: Wednesday, December 28, 2016 10:32 AM To: Loepp, Victoria T (DOA) <victoria.loepp@alaska.gov> Cc: Starck, Kai <Kai.Starck@conocophillips.com>; Haggerty-Sherrod, Ann (Northland Staffing Services) <Ann.Haggerty- Sherrod@contractor.conocophillips.com> Subject: RE: KRU 3M-14 (187-051) CTD Sidetrack Victoria — I have four 10-401's and one 10-403 headed over to you today for KRU 3M-14. In related news, Nabors CDR2 is in the midst of a difficult workover on well 3M-24. We are going to make one last effort to retrieve a packer that has given us substantial trouble already. If we recover the packer, then we'll proceed according to our original plan. But if we fail, we plan to suspend that workover and move Nabors CDR2-AC to well 3M-14 to drill these laterals. That means there is the possibility that we will want to begin CTD operations on 3M-14 as early as January 1, 2017, so I request expedited approval of these drilling permits (at least the first one, 3M-14A). I'm sorry to rush you like that, but events have conspired against us. Thanks much for your help. -Gary Eller From: Loepp, Victoria T (DOA) [mailto:victoria.loepp alaska.gov] Sent: Wednesday, December 28, 2016 8:26 AM To: Eller, J Gary<J.Gary.Eller@conocophillips.com> Subject: [EXTERNAL]RE: KRU 3M-14 (187-051) CTD Sidetrack Hi Gary, We will still need a plug for redrill 10-403 for the motherbore to review the proposed abandonment. We will also approve the alternate plug placement approval as a part of that 10-403. Please submit the 10-403 plug for redrill with the PTDs even though the abandonment procedure will be accomplished during the CTD sidetrack. Thanx, Victoria Victoria Loepp Senior Petroleum Engineer State of Alaska Oil & Gas Conservation Commission 333 W. 7th Ave Anchorage, AK 99501 Work: (907)793-1247 Victoria. Loepp(a alaska.gov 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, w....jut first saving or forwarding it, and, so that the A�_. CC is aware of the mistake in sending it to you, contact Victoria Loepp at (907)793-1247 or ✓ictoria.Loepp@alaska.pov From: Eller, J Gary[mailto:J.GarV.Eller@conocophillips.com] Sent: Tuesday, December 27, 2016 3:15 PM To: Loepp, Victoria T (DOA) <victoria.loepp@alaska.gov> Cc: Schwartz, Guy L (DOA) <guy.schwartz@alaska.gov>; Burke, Jason <Jason.Burke @conocophillips.com>; Connelly, Jeff <Jeff.S.Con nelly@conocophiIIips.com>; Starck, Kai <Kai.Starck@conocophillips.com> Subject: KRU 3M-14 (187-051) CTD Sidetrack Victoria — In just a few days, ConocoPhillips will be submitting 10-401's for CTD sidetrack/laterals from KRU 3M-14 (187- 051). Well 3M-14 is a rock producer that is incapable of production, and the CTD sidetrack will restore this lost productivity. The attached schematic shows that following the sidetrack, the new CTD borehole will be completed with 2- 3/8" swell packer and liner -top packer in order to permanently isolate the existing, rock -producing perfs of KRU 3M-14. I wanted to contact you because the abandonment of the motherbore, 3M-14, is unusual in that we are unable to mechanically abandon the perforated, rock -producing interval prior to CTD sidetrack. There is just sufficient room above the compromised 41/" scab liner for a single whipstock exit, and we do not have room for a cement plug or other mechanical isolation. However, the final CTD completion with swell packer and liner -top packer will permanently isolate the mother completion. It is ConocoPhillips intention to do the following: • We will submit the 10-401 s as a sidetrack of 3M-14 (i.e. 3M-14A) since the mother completion will be fully isolated/abandoned. • The 10-401s will address the completion plan which will isolate/abandon KRU 3M-14 (187-051). We recognize that this isolation method does not meet the requirements of 20 AAC 25.112(c), but we believe it meets the intent of accomplishing the sidetrack and restoring production without risking migration of fluids to other zones. • Since there are no pre-CTD operations that need to be performed to abandon 3M-14, we do not intend to submit a 10- 403 for the isolation/abandonment; that will be addressed in the 10-401 s. We do plan to submit a 10-407 post-CTD for the abandonment of 3M-14 (187-051) as permitted under the 10-401s. Please contact me if you'd like to discuss this further. << File: 3M-14 proposed PTD schematic.pdf >> J. Gary Eller CTD Team Lead ConocoPhillips - Alaska work: 907-263-4172 cell: 907-529-1979 TRANSMITTAL LETTER CHECKLIST WELL NAME: K U, _�m - ►14AL,Z PTD: 73 ✓ Development _ Service _ Exploratory _ Stratigraphic Test _ Non -Conventional FIELD: 4tn, �V \/O�- POOL: ` Check Box for Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI LATERAL The permit is for a new wellbore segment of existing well Permit v (If last two digits No. API No. 50- Q 3 - o % -01- (D0 . Production in API number are should continue to be reported as a function of the original API number stated between 60-69) above. In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the Pilot Hole pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - from records, data and logs acquired for well. The permit is approved subject to full compliance with 20 AAC 25.055. Approval Spacing Exception to produce / inject is contingent upon issuance of a conservation 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 Commission must be in no greater than Dry Ditch Sample 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: Non- Production or production testing of coal bed methane is not allowed for name of Conventional well until after (Company Name) has designed and implemented a water well Well ro baseline data on water testing program to provide g p quality and quaritity. (Company Name) must contact the Commission 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 5/2013 WELL PERMIT CHECKLIST Field & Pool KUPARUK RIVER, KUPARUK RIV OIL - 490100 PTD#:2161730 Company CONOCOPHILLIPS ALASKA INC Initial Class/Type Well Name: KUPARUK RIV UNIT 3M-14AL2 Program DEV Well bore seg DEV / PEND GeoArea 890 Unit 11160 On/Off Shore On Annular Disposal ❑ Administration 17 Nonconven. gas conforms to AS31.05.0300.1.A),0.2.A-D) NA 1 Permit fee attached NA 2 Lease number appropriate Yes ADL0025523, Surf; ADL0025522, Top Prod Interv; ADL0025512, TD. 3 Unique well name and number Yes KRU 3M-14AL2 4 Well located in a defined pool Yes KUPARUK RIVER, KUPARUK RIV OIL - 490100, governed by Conservation Order No. 432D. 5 Well located proper distance from drilling unit boundary Yes CO 432D contains no spacing restrictions with respect to drilling unit boundaries. 6 Well located proper distance from other wells Yes CO 432D has no interwell spacing restrictions. 7 Sufficient acreage available in drilling unit Yes 8 If deviated, is wellbore plat included Yes 9 Operator only affected party Yes Wellbore will be more than 500' from an external property line where ownership or landownership changes. 10 Operator has appropriate bond in force Yes Appr Date 11 Permit can be issued without conservation order Yes 12 Permit can be issued without administrative approval Yes PKB 12/28/2016 13 Can permit be approved before 15-day wait Yes 14 Well located within area and strata authorized by Injection Order # (put 10# in comments) (For NA 15 All wells within 1/4 mile area of review identified (For service well only) NA 16 Pre -produced injector: duration of pre -production less than 3 months (For service well only) NA 18 Conductor string provided NA Engineering 19 Surface casing protects all known USDWs NA 20 CMT vol adequate to circulate on conductor & surf csg NA 21 CMT vol adequate to tie-in long string to surf csg NA 22 CMT will cover all known productive horizons No 23 Casing designs adequate for C, T, B & permafrost Yes 24 Adequate tankage or reserve pit Yes 25 If a re -drill, has a 10-403 for abandonment been approved NA 26 Adequate wellbore separation proposed Yes 27 If diverter required, does it meet regulations NA Appr Date 28 Drilling fluid program schematic & equip list adequate Yes VTL 12/29/2016 29 BOPEs, do they meet regulation Yes 30 BOPE press rating appropriate; test to (put psig in comments) Yes 31 Choke manifold complies w/API RP-53 (May 84) Yes 32 Work will occur without operation shutdown Yes 33 Is presence of H2S gas probable Yes 34 Mechanical condition of wells within AOR verified (For service well only) NA 35 Permit can be issued w/o hydrogen sulfide measures No Geology 36 Data presented on potential overpressure zones Yes Appr Date 37 Seismic analysis of shallow gas zones NA PKB 12/28/2016 38 Seabed condition survey (if off -shore) NA 39 Contact name/phone for weekly progress reports [exploratory only] NA Geologic Engineering Public Commissioner: Date: Com fission r: Date Com r Date a� Conductor set in KRU 3M-14 Surface casing set in KRU 3M-14 Surface casing set and fully cemented Productive interval completed with slotted liner Rig has steel tanks; all waste to approved disposal wells Anti -collision analysis complete; no major risk failures Max formation pressure is 4728 psig(14.7 ppg EMW); will drill w/ 9.6 ppg EMW and maintain overbal w/ MPD MPSP is 4108 psig; will test BOPS to 4600 psig 1­12S measures required Wells on 3M-Pad are H2S-bearing. H2S measures required. Max. potential reservoir pressure is 14.67 ppg EMW; will be drilled using 9.6 ppg mud and MPD technique. Onshore development lateral to be drilled.