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O d Ce is u £ n. 0 E a U VS- Bandon Ellison Hilcorp Alaska, LLC GeoTech II 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 G Tale: 907 777-8339 RECEIVED xil+�,rp:ttwwka,i.te: Fax: 907 777-8510 E-mail: lellison @hilcorp.com DATA LOGGED 5EP 0 5 2013 / /2013 M AOGOC M K BENDER DATE 09/05/2013 To: Alaska Oil BE Gas Conservation Commission Makana Bender Natural Resource Technician 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL SRU 24-15 Prints: Gamma Ray/ Memory Log 2in MD Gamma Ray/ Memory Log 5in MD Gamma Ray/ Memory Log 2in TVD Gamma Ray/ Memory Log 5in TVD CD: Final Well Data Hilcorp_SRU24-15 MD2MEM GAM 3022-11110 8/23./2013 6:46 PM Adobe Acrobat D... 1,064 KB Hilcorp_SRU24-15_MDSMEM_GAM_3022-11710 8/23/2013 6:47 PM Adobe Acrobat D... 2;329 KB Hilcorp_SRU24-15_Surveys_265-10710 8/23/2013 11;00 AM Adobe Acrobat D.., 70 KB ft Hilcorp_SRU24-15_TVD2MEM_GAM_3022-11710 8/23/2013 6:48 PM Adobe Acrobat D... 1;303 KB t Hilcorp SRU24-15 TVD5MEM GAM_3022-11710 8123/2013 6:45 PM Adobe Acrobat D... 2,499 KB Hilcorp_SRU24-15_MD2MEM_GAM 3022-11710 8/23/2013 6:42 PM CGM File 1A42 KB Hilcorp_SRU24-15_MD5MEM_GAM_3022-11710 8/23/2013 6;40 PM CGM File 3,087 KB Hilcorp_SRU24-15_TVD2MEM_GAM_3022-11710 8/23/2013 6:42 PM CGM File 1,438 KB j Hilcorp SRU24-15_TVD5MEM GAM_3022-11710 8/23/2013 6:41 PM CGM File 1,872 KB • Hilcorp_SRU24-15_MDMEM_GAM 3022-11710 8/23/2013 7:31 PM LAS File 2524 KB • Hilcorp_SRU24-15_Surveys_265-10710 8/23/2013 11:23 AM Text Document 25 KB Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: Date: ell51h3 Page 1 of 2 Okland, Howard D (DOA) From: Landon Ellison [lellison @hilcorp.com] Sent: Monday, August 12, 2013 2:30 PM To: Okland, Howard D (DOA) Subject: RE: SRU 24-15 Attachments: HILCORP_SRU_24-15_OPENHOLE_SPLICE.zip Howard, Same day service! See attached. Let me know if you need something else, thanks Landon Ellison Geotech II Hilcorp Alaska lellison @hilcorp.com 907-777-8339 From: Okland, Howard D (DOA) [mailto:howard.okland @alaska.gov] Sent: Monday, August 12, 2013 11:17 AM To: Landon Ellison Subject: RE: SRU 24-15 TNX ! ! Howard From: Landon Ellison [mailto:lellison @hilcorp.com] Sent: Monday, August 12, 2013 11:16 AM To: Okland, Howard D (DOA) Subject: RE: SRU 24-15 He just said that he'd start working on it so if we don't see something in the next few days, I'll follow up. thanks Landon Ellison Geotech II Hilcorp Alaska lellison @hilcorp.com 907-777-8339 From: Okland, Howard D (DOA) [mailto:howard.okland @alaska.gov] Sent: Monday, August 12, 2013 11:15 AM To: Landon Ellison Subject: RE: SRU 24-15 Landon, TNX. I'll be looking for it. Were they able to give you an approx date that they will send the composited file? Howard 8/13/2013 Page 2 of 2 From: Landon Ellison [mailto:lellison @hilcorp.com] Sent: Monday, August 12, 2013 10:37 AM To: Okland, Howard D (DOA) Subject: RE: SRU 24-15 Howard, I've contacted our logging vendor and asked for a composite of the LAS runs. I'll send them with ATTN: to you as soon as I receive them. Thanks, Landon Ellison Geotech II Hilcorp Alaska lellison @hilcorp.com 907-777-8339 From: Debra Oudean Sent: Monday, August 12, 2013 9:15 AM To: Landon Ellison Subject: FW: SRU 24-15 Landon, can you take care of this request? From: Okland, Howard D (DOA) [mailto:howard.okland @alaska.gov] Sent: Monday, August 12, 2013 7:57 AM To: Debra Oudean Cc: Davies, Stephen F (DOA) Subject: SRU 24-15 Debra, Hilcorp submitted two LAS files of OH data for the SRU 24-15 (API 50 133 20609 00, PTD 213-007). One LAS file went from 2779' to 8004' and the other from 9377' to 11615'. The well history indicates that there were problems over the interval 8442' to 9576' and that OH wireline logging data could not be not be obtained. AOGCC regulation 20 AAC 25.071, Geologic data and logs, requires the operator to combine recorded data from separate field logging runs into composite well log plots and digital files. Would you please ask your logging contractor to composite the two logging runs into one composited LAS file. Please let me know when (approximately)the Commission can receive the composited file. TNX, Howard 7931235 8/13/2013 II Landon Ellison Hilcorp Alaska, LLC GeoTech II 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 RECEIVED Tele: 907 777-8339 Rarni,..kok ilk Fax: 907 777-8510 E-mail: lellison @hilcorp.com JUL 3 0 2013 AOGCC DATE 07/30/2013 2 13 -' CO To: Alaska Oil & Gas Conservation Commission I Makana Bender Natural Resource Technician 333 W 7th Ave Ste 100 3 1a)„, Anchorage, AK 99501 DATA TRANSMITTAL SRU 24-15 Prints: Radial Cement Bond Log Please include current contact information if different from above. Please acknowled receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: Date: iyizr G L on Ellison Hilcorp Alaska, IA RECEIVED eoTech II 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Tele: 907 777-8339 JUL 1 7 2013 nar,,rp Amok»,r,ld: Fax: 907 777-8520 E-mail: Iellison @hilcorp.com fl G C DATE 07/17/2013 /3 - 0)07 To: Alaska Oil & Gas Conservation Commission Makana Bender Natural Resource Technician 62- -( 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL SRU 24-15 Prints: F:n`I well reps* Formation Log MD 5in Formation Log MD 2in Formation Log ND 2in LWD Combo Log MD 2in �. LWD Combo Log MD 5in Gas Ratio Log MD 2in Gas Ratio Log ND 2in •• Drilling Dynamics MD 2in Drilling Dynamics ND 2in CD: Final Well Data Daily Reports DML Data Final Well Report LAS Files Log PDF Files Log TIFF Files Please include current contact information if different from above. Please acknowledge recr i y si• ing . d eturning one copy of this transmittal or FAX to 907 777.8337 ° ' Received By: - ��� Date: ALA... OIL AND GAS CONSERVATION COMMloSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1 a.Well Status: Oil 0 ; Gas ❑ SPLUG ❑ Other ❑ Abandoned ❑ Suspended❑ lb.Well Class: 20AAC 25.105 20AAC 25.110 Development 19 • • Exploratory ❑ GINJ ❑ WINJ❑ WAG ❑ WDSPL❑ No.of Completions: Service ❑ Stratigraphic Test ❑ 2.Operator Name: 5.Date Comp.,Susp.,or 12.Permit to Drill Number: Hilcorp Alaska,LLC • Aband.: 4/30/2013 ' 213-007 • 3.Address: 6.Date Spudded: 13.API Number: 3800 Centerpoint Drive Suite 100,Ancorage,AK,99503 3/16/2013 • 50-133-20609-00-00 • 4a. Location of Well(Gavemmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 881'FSL,2370'FEL,SEC 15,T8N,R9W,SM • 4/19/2013 • SWANSON RIVER UNIT 24-15 Top of Productive Horizon: 8.KB(ft above MSL): 307.5; '15.Field/Pool(s): 793'FSL,1763'FWL,Sec 15,T8N,R9W,SM,AK ' GL(ft above MSL): 288.9' SWANSON RIVER FIELD Total Depth: 9.Plug Back Depth(MD+TVD): HEMLOCK OIL POOL • 779'FSL,1525'FWL,Sec 15,T8N,R9W,SM,AK 11,579'MD/11369 ND• 4b. Location of Well(State Base Plane Coordinates,NAD 27): 10.Total Depth(MD+TVD): +16.Property Designation: Surface: x- 350734 • y- 2477838 • Zone- 4 •11710'MD/11494'TVD- ° A028384,A028406 TPI: x- 349585.7 y-2477770.38 • Zone- 4 11.SSSV Depth(MD+ND): 17.Land Use Permit: Total Depth: x- 349347.53 y-2477760.07 Zone- 4 N/A N/A 18.Directional Survey: Yes 0 • No ❑ 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) N/A 21. Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/TVD: GR,Resistivity _ N/A 23. CASING,LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH ND AMOUNT CASING FT GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 16" 109 X56 0 0 0 72' - - 10 3/4" 45.5 L-80 0 3023' 0 3016' 13.5" 497.5 sx Lead, 122 sx Tail 7 5/8" 29.7 L-80 0 7144' 0 9467' 9.875" 1137.2 sx Lead, 188.3sx Tail 7 5/8" 29.7 P-110 7144 9562' 7,138' 9,467' 9.875" see above 5" 15 L-80 9339.11 11697' 9260' 11481' 6.75" 420 sx Lead 24.Open to production or injection? Yes 0 No ❑ 25. TUBING RECORD If Yes, list each interval open(MD+TVD of Top and Bottom;Perforation SIZE DEPTH SET(MD) PACKER SET(MD/TVD) Size and Number): 2 7/8" 7.9#P-110 PH6 10,836' 9298.09'MD/9,222'TVD SEE ATTACHED WELLBORE SCHEMATIC 2 3/8"4.6#L-80 8RD 1,921 ra-- dt'LI I1Qlf. i 26. ACID,FRACTURE,CEMENT SQUEEZE,ETC. L t , ,. • Was hydraulic fracturing used during completion? Yes[l No Ei I DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED r 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): 6/4/2013 Gas Lift Date of Test: Hours Tested: "Production for Oil-Bbl: Gas-MCF: 'Water-Bbl: Choke Size: Gas-Oil Ratio: 6/21/2013 9.32 hr's Test Period .-4 58.41 249 472,59 3 inch spool 4258 Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(ca : Press. 365 1520 24-Hour Rate - 151 643 1217 ,J.& j. '•O5 28. CORE DATA Conventional Core(s)Acquired? Yes ❑ No lel Sidewall Cores Acquired? Yes ❑ No IN If Yes to either question,list formations and intervals cored(MD+TVD of top and bottom of each),and summarize lithology and presence of oil,gas or water (submit separate sheets with this form,if needed).Submit detailed descriptions,core chips,photographs and laboratory analytical results per 20 AAC 25.071. 6 RBDMS JUL - 2 201,6 Form 10-407 Revised 10/2012 CONTINUED ON REVERSE 730.,I3 Submit original only ` 4-k•`17 3 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? J Yes LJ No If yes,list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form,if needed, Permafrost-Top and submit detailed test information per 20 AAC 25.071. Permafrost-Base Tyonek G2 10,920 10,743 Top Hemlock 10,978 10,798 Hemlock H2 11,009 10,828 H3 11,036 10,853 H6 11,121 10,933 H7 11,134 10,946 H10 11,309 11,111 H11 11,383 11,182 H13 11,482 11,276 Formation at total depth: Hemlock 11,710 11,495 31. List of Attachments: Definitive Surveys,As drilled wellbore schematic,All casing tallies,All casing and cement reports, Days vs Depth,MW vs depth,Morning Report summaries 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Janise Barrett Email:jbarrettAhllCorp.Com Printed Name: Luke Keller Title: Drilling Engineer �/ �a 9 Signature: Phone: 7 77—D . S Date: INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases 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. Item 1b: Classification of Service wells: Gas Injection,Water Injection,Water-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection,Observation,or Other.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 4b: TPI(Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level 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 13: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well 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. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. 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. Form 10-407 Revised 10/2012 Swanson River Unit II ACTUAL Well SRU 24-15 PTD: 213-007 API: 50-133-20609-00 IliIcorp Alaska.LLC 16" F' 1 is r, CASING DETAIL JP Size Type Wt Grade Conn. ID Top Btm Conductor- 10-3/4' 1' 16" Driven to Set 109 X-56 Weld 16" Surf 72' *0 4 Depth 2 p 4, 10-3/4" Surf.Csg 45.5 L-80 Buttress 9.875" Surf 3,023' s C29.7 L-80 BTC 6.75" Surf 7,145.61' i1 7-5/8" Intermediate P-110 29.7 HC BTC 6.75" 7,145.61' 9,563.75' 5" Prod Lnr 15 L-80 DWC/C 4.283" 9,396' 11,700' iii : �L c HT « C (0°3 TUBING tt2-7/8" Production 6.4 L-80 8rd EUE 2.441" Surf 10,806.65' 3 /07( \ JEWELRY DETAIL ► No. Depth ID OD Item 4 ' 1 18' 2.99" 11" Tubing Hanger V El f«r 2 3,947' 2.44" 4.750" 2-7/8"SFO-1 Mandrel 8RD 5 i 3 7,150.53' 2.44" 4.750" 2-7/8"SFO 1 Mandrel 8RD +' 4 5 9201.65' 2.44" 9248.62' 2.44" 4.750" 4.750" 2-7/8"SFO-1 Mandrel 8RD-orifice r 1 1 I d Chemical Injection Mandrel 7 6 9291.73' 2.313" 6.5" X Landing Nipple r r' 7 9,298.09' 2.44" 6.75" 7 5/8 FH Hydraulic Packer 24-29.7# 8 10,773.53 2.44" 3.5" X Landing Nipple 7-5/8" 9 10,806.65 2.44" 3.5" WL Entry Guide 8 PERFORATIONS 9 s Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) SPF Length Date Tyonek G2 10,923' 10,972' 10,745' 10,786' 6 49' May 2013 ■ mi Hemlock H1 10,985' 11,000' 10,805' 10,819' 6 15' May 2013 H2 11,012' 11,018' 10,831' 10,836' 6 6' May 2013 • H3 11,040' 11,050' 10,857' 10,866' 6 10' May 2013 ■ r H4 11,054' _ 11,062' 10,870' 10,878' 6 8' May 2013 H5 11,085' 11,095' 10,899' 10,909' 6 10' May 2013 IH6/7 11,120' 11,151' 10,933' 10,962' 6 31' May 2013 H10 11,315' 11,348' 11,117, 11,148' 6 33' May 2013 5., ,G I PBTD=11,577'/PBTVD=11,367' TD=11,710'/TVD=11,494' Updated by JSB 06/26/2013 Hilcorp Alaska,LLC office Box 9524- - Anchorage,AK 99524-4027 3800 Centerpoint Drive Suite 100 Anchorage,AK 99503 Phone: 907/777-8300 July 1, 2013 Fax:907/777.-8301 Alaska Oil and Gas Conservation Commission 333 W.7th Ave.,Ste. 100 Anchorage,Alaska 99501 Re: Swanson River Field SCU 41A-04 Update to Form 10-407 Swanson River Field SRU 24-15 Update to Form 10-407 Dear Commissioner: This letter is to update the Well Completion Form 10-407 for the SCU 41A-04 and SRU 24-15.Our Oil Gravity API tests are now complete.The Oil Gravity API for SCU 41A-04 is 27.58,specific gravity is 0.8895.The Oil Gravity API for SRU 24-15 is 28.05 and the specific gravity is 0.8869. Please do not hesitate to contact me should you have any questions or need additional information. Sincerely, HILCORP ALAS A LLC ) 77,...:,,4/pirt,_ . j Janise Barrett -' Drilling Technician jsb 10-407 cc: Luke Keller Landon Ellison Hilcorp Alaska, LLC GeoTech II 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Tele: 907 777-8339 iafrnsp.4t.k tarn: Fax: 907 777-8510 E-mail: lellison @hilcorp.com • RECEIVED DATE 05/06/2013 MAY 0 7 2013 To: Alaska Oil &Gas Conservation Commission Makana Bender AOGCC Natural Resource Technician 333 W 7th Ave Ste 100 Anchorage, AK , 99501 ) � ' DATA TRANSMITTAL SRU 24-15 Prints: Sonic Porosity Wave Sonic Composite BHV Array Comp RES Wave Sonic CD: Final Well Data Name Date modified Type Size HILCORP SRU.2.4=15_tCRT 20APRL3 412912013 8:06 AM Adobe Acrobat I)... 10,060 KB MLCORP RU_24.15 ACRT Z)APR13.DO... 4/2912.013 8:06 AM LAS File 4,031 KB F{ILCORP SRU 2415,ACRT 20APR1:.3.img 4129/201:311:24 AM TIF image 2,184 KB MLCORP,SRU 24-15 ACRTMARV.RE... 41291212:13 8:06 AM LAS Fite 853 KB SRI.24-:153HV 0.9APR13 4/15121)1.39:36 AM Adobe Acrobat I)... 9,462 KB SRU 2445_13Ffi109APRi3iow 4/15121)13 4::36 AM 111 linage 6,314 KI3 'a4 SRU 24-15_COMPOSi1TE I)9APR.0 4/1512013 9:36 AM Adobe Acrobat I)... 13,739 KB SRlJ 24-15._COMPOSITE IY)APR13,im 411512013 91:36 AM IlF Image 11,330 KB SRU24-1.5_QUAD 09APRI3_RPT 4SPFF 4/151201 !MG AM LAS File 414 KB SRU 24-1.5QUAD JYJAPR13_MAIN CI* 4/1512013 9:36 AM LAS File 4,326 KB ▪ SRU 24-15 SOW.POROSITY,09APR1.3 4/1512013 9:37 AM Adobe Acrobat D... 9,020 KB SRIJ 24-15 SONIC POROSITY,09APR13 t... 4/15121)13 9:37 AM R'Image 7,448 KB ▪ SRU 24-15 WAVE InAPR13 4713121113 9:37 AM Adobe Acrobat I)... 27,533 KB SRU 24-:15 WAVE 09APR13im, 4/15/2013 9:31 AM 'iIF image 12,897 KB SRU,24-15 WAVE MAPR1:3 MAIN 4SPF 4/15/20139:31 AM LAS File 2,807 KB I j SRU 24-15 WAVE 09APR13 RPT 4!3PF 4/15/710139:37 AM LAS File 275 KB Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: l 'r _,,1 �,� Date: _ ! !� fki 44-c_ VI Landon Ellison Hilcorp Alaska, LLC GeoTech II 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Tele: 907 777-8339 HilrorAlma*,1.tx: Fax: 907 777-8510 E-mail: lellison @hilcorp.com DATE 05/06/2013 To: Alaska Oil & Gas Conservation Commission Makana Bender Natural Resource Technician 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL SRU 24-15 Prints: Sonic Porosity Wave Sonic Composite BHV Array Comp RES Wave Sonic CD: Final Well Data Name Date modified Type Size ▪ H ILCORP_SRU 24-15 ACRT20APR13 4/29/2013 8:06 AM Adobe Acrobat D.., 10,060 KB HILCORP_SRU 24-15 ACRT 20APR13_DO... 4/29/2013 8:06 AM LAS File 4,031 KB HILCORP SRU 24-15_ACRT 2OAPR13_img 4/29/2013 11:24 AM TIF Image 2,184 KB HILCORP SRU 24-15_ACRT_20APR13 RE... 4/29/2013 8:06 AM LAS File 853 KB SRU 24-15 BHV 09APR13 4/15/2013 9:36 AM Adobe Acrobat D... 9,462 KB SRU 24-15 BHV 09APR13 img 4/15/2013 9:36 AM TIF Image 6,314 KB ▪ SRU 24-15 COMPOSITE 09APR13 4/15/2013 9:36 AM Adobe Acrobat D... 13,739 KB SRU_24-15_COMPOSITE 09APR13_img 4/15/2013 9:36 AM TIF Image 6,330 KB SRU 24-15_QUAD 09APR13_RPT 4SPF 4/15/2013 9:36 AM LAS File 414 KB SRU 24-15_QUAD 09APR13 MAIN 4SPF 4/15/2013 9:36 AM LAS File 4,326 KB ▪ SRU 24-15_SONIC_POROSITY 09APR13 4/15/2013 9:37 AM Adobe Acrobat D... 9,020 KB LA SRU24-15 SONIC POROSITY09APR13 i... 4/15/2013 9:37 AM TIF Image 7,448 KB f}�SRU 24-15_WAVE 09APR13 4/15/2013 9:37 AM Adobe Acrobat D... 27,533 KB SRU_24-15 WAVE 09APR13_img 4/15/2013 9:37 AM TIF Image 12,897 KB SRU24-15 WAVE 09APR13_MAIN4SPF 4/15/2013 9:37 AM LAS File 2,807 KB }SRU 24-15 WAVE 09APR13_RPT 4SPF 4/15/2013 9:37 AM LAS File 275 KB Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: Date: Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date SRU 24-15 50-133-20609-00-00 213-007 Daily Operations: 3/13/2013-Wednesday Mobilizing and rigging up. 3/14/2013 -Thursday Mobilizing and rigging up. 3/15/2013-Friday Continue to N/U Diverter system. Pick up, rotate DSA 1 hole to correct oriention. Continue to mix Spud Mud. Load Pipe Shed with (80)jts of 5" Dp. SLM same. Run communication to MWD &Canrig shacks. Verify all DD Tools on location. Install 4- 1/2" IF Saver Sub, Function test TD, Load Shed w/25 jts HWDP &SLM same. Hook up Hole Fill line and Hydraulics ✓ f/Accumulator to Diverter System. Install Drip Pan, Install Bails and Elevators. Make up 130' of 16" Diverter Line. Test Diverter System (Good) Bob Noble of AOGCC waived witness of test @ 14:50. Quadco Reps on location setting up Rig Watch system. Continue mixing mud, clear rigfloor, replace hose on topdrive. Cut and slip drilling line. Test gas alarms and check pit markers. Make up 10-3/4" Landing Joint to Hanger/Pup. Land Hanger in Well Head & mark it. Install wear bushing. Pick up HWDP and 5" drill pipe standing back in derrick. Mobe BHA to rig floor and start picking up BHA#1. 3/16/2013-Saturday Stage BHA components on rig floor and prep rig floor for drilling. Make up 13-1/2" Bit, 1.2 deg Mtr,Stab, Pony NMDC,XO& (1)std HWDP. Tag @ 72'. Flood Conductor and BOP w/Spud Mud. Tighten Flow Nipple to stop leak. Brk Circ. Pressure test Mud Line and Stand Pipe to 1,500 psi w/Rig Pump. Spud Well @ 10:45- Drill 13-1/2" hole f/72'to 378'. Start w/8 bpm, 600 psi,40 RPM, 1K Tq. Increase parameters to 14 bpm, 1,550 psi, 60 RPM by 250' drilled. CBU x 2 to clear cuttings from Well Bore. Rack back(5)stands of HWDP. P/U (2)8 1/4 NMDCs and Combo DrIg Jars. TIH t/378'. Pump up survey @ 337'. Survey showed 1.14 deg drift to 308.65 Az. Slide 24'to counter the walk in this assembly. Drill F/378'to 750'with 650 gpm @ 2,500 psi, 80 rpm @ 2.5kup=64k Dn=60 Rt=60. Drill F/750'to 1,238',WOB=14k,GPM=670, Rotary=80, 92 ft/hr Ave ROP. Taking surveys every 120', 14' high and 2.3' right 3/17/2013 -Sunday Drill 13-1/2" Hole from 1,238 to 2,059 (86 ft/hr Ave ROP). 16.2 bph, 2330 Psi, 80 RPM, 1-3k Tq, 10- 15k WOB, UP 90k, DN 88k, R 86k. CBU x 2 to clean Well Bore. 16.5 bpm, 2,400 psi. Short Trip F/2,059't/138'. 15k overpull @ 1,585', 1,380' & 1,210'. Hole took 6 bbls over calculated displacement on trip out to BHA. Monitor Well and service rig. TIH to 2,059'. Wash down final stand. No Fill on bottom, calibrate block height. Break circulation &stage up pump rate slowly. Drill 13-1/2" hole f/2,059't/2,250'. GPM=650, WOB= 15k, RPM =80,TQ= 34K. Drill 13-1/2" hole F/2,250'to 2,720'with 620gpm, 2,340psi, 80rpm, 4,500ft/lb. This assembly drilled 1,482' in 11.1 hrs Average ROP = 134'ft/hr. 3/18/2013-Monday Drill 13-1/2" Hole f/2,730't/3,030'. UP 115k, DN 111k, RT 113k, 15 bpm = 2,400 psi, CBU x 3. 15.4 bpm = 2,500 psi. Short Trip(20) stands f/3,030'to 1,710'. 20k over pull @ 2,026'. TIH f/1,710'to 3,030', (no fill). Wiped thru tight spot x2 @ 2,040'. Circ&cond for casing. Pump high vis sweep(ret 700 stks early). Pumped Carbide. Marker and circ to surface (no indication). Pumped High Vis Sweep w/nut plug to gage hole washout. Nut plug returned 1,000 stks early. POOH for Casing from 3,030'to BHA @ 927'. Rack back HWDP and Jars. Clean, inspect and lay down Directional Tools. Grade Bit..1-1-WT-A-E- I-NO-TD. PJSM, Remove BHA from pipe shed, clear rig floor, P/u single and break head pin for safety valve. M/U bushing puller and pull wear bushing. L/D 5" elevators, bails, Mob centralizers to rig floor. Pick up long bails and elevators, M/U safety valve. Rig up casing equipment. Rig up fill up line from pits (Static losses 3.2 bbls/hr.) PJSM on running casing. Pick up shoe track and fill, check floats-OK. Run 10-3/4" L-80 BTC #45.5 casing keeping full through the fill up line. This assembly drilled a total of 2,958' in 27.5 on bottom drilling Hrs,107.5ft/hr. 3/19/2013 Tuesday P/U and RIH with 10-3/4",45.5#, L-80 Casing f/480'. Top fill each joint. Install Bow Spring Centralizer every-other joint from bottom to 300'. MU landing jnt and hanger, load plug launcher MU on landing jnt. MU circ lines. Break circ at 65 spm-140 psi,stage pump rate up to 6 bpm-326 psi. Did 3 bottoms up while mixing MudPush. Pit watcher accidently transferred 40 bbls MudPush into active system. Called out more chemicals to build new batch MudPush. Cont circ,wait on MudPush chemicals from town. 4 hrs total wait time. SLB loaded lines with 5 bbls water and checked for leaks. SLB pressure tested lines at 1,000 low 3,000 high for 3 minutes each. Rig pumped 40 bbls 11ppg MudPush II at 6.5 bpm-295 psi and shut down. SLB dropped bottom plug and pumped 216 bbls (493 sx) 12ppg Class A lead cement at 5.5 bpm-370 psi,followed by 53 bbls (244 sx) 15.4ppg tail cement at 4 bpm-370 psi. SLB dropped top plug,SLB displaced with 277.5 bbls 10ppg Spud Mud at 6 bpm-1000 psi, slowing to 2 bpm with 10 bbl to go. Plug did not bump. Held 700 psi (FCP of 800psi)for 5 minutes bled off and floats held. Had 40 bbls MudPush II returns to surface and 70 bbls 12ppg lead cement to surface. Took all cement returns to cellar box, obtained 2 samples of cement returns prior to bumping plug and 2 samples from mixing tub. Mix water temp 65 deg. Pumped 30%excess on both lead and tail. Had full returns throughout the job. Reciprocated string 2 x per minute until cement left the shoe. Up wt 145K,dwn wt 120K at time of landing hanger. RD and released Schlumberger. CIP at 10:50 hrs, 3-19-13. Blow dwn lines, clean cement from cellar box, back out landing jnt. PJSM,wash bowl, M/U landing jt to pack off running tool, land pack off run in LLDS, N/D diverter and surface stack. 11 Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date SRU 24-15 50-133-20609-00-00 213-007 2/15/13 Daily Operations: 3/20/2013 -Wednesday NU wellhead w/Cameron Rep, inject plastic packing,test packoff/void at 3000psi f/10 min,test good. Release Cameron Rep. Cont ship spud mud to G&I for disposal. Install 18" spacer spool, single gate, mud cross, double gate, annular,torque cap on annular and install lock pin. Cont cleaning pits, change to 5" liners on mud pumps, install kill line, install choke line, change lower rams to 5". Clean upper ram cavities and seals. Button up ram doors, clean last mud tank,CO fittings on storage tanks and start transferring 630 bbls 9.9ppg mud to rig. Clear rig floor,check all lines. Rig up to test BOP's. Make up rocket launcher to topdrive and torque up for testing, Function test BOP's. Make up 12' and 5' pup jt with ported sub and test plug. Start testing, pressure bleeding off.Trouble shoot leak.Tighten all connections and pressure up on stack, pressure holding. Test BOP's. 3/21/2013 -Thursday Cont testing BOPE at 250psi low/4,000psi high 10 min each, 250/2500 on annular,2,950psi initial on koomey, 2025psi after closures, 200 psi obtained in 11 seconds, 65 seconds to obtain final psi, 2300 psi average on nitrogen bottles, had two fail/pass tests (choke line flange and choke valve#5). AOGCC Rep Jim Regg waived witness of BOP test on 3-19-13 at 9:14 hrs. LD test jnt and plug, blow dwn top drive, kill, choke lines, install wear ring. Service rig and topdrive,grease crown. MU BHA#2 (9 7/8" drillout)Smith mill tooth w/0.6995 tfa+bit sub w/float+2 jnts flex collars+4jnts HWDP+jars+21 jnts HWDP. Cont RIH w/BHA#2 on 5" DP from pipeshed,fill pipe every 60 jnts,to 2,925' and tagged wiper plug. MU topdrive, break circ at 6 bpm-282 psi,40 rpm-3,600 ft/lbs torque w/10ppg mud. Drill cement F/2,925'to the float collar @ 2,939'. Circ B/U <4C getting the cement cuttings out to surface. Rig up and test the 10-3/4" casing to 1,500 psi for 30 min on chart. Drill the float collar and shoe track to 2,963'. Continue drilling cement in shoe track f/2,963'to the shoe @ 3,023'. Cont drilling shoe, 7' of rathole plus 20' new formation to the depth of 3,050'. Displace well to 11.5ppg 6% KCL PHPA mud at 210 gpm-160 psi, 50 rpm-1,800 ft/lbs. 3/22/2013 Friday POOH 1 stnd. RU chart recorder, perform FIT at 315 psi for EMW of 13.5 ppg. Bleed off, RD test equip, RIH 1 stnd and MU topdrive. Cont drilling 9-7/8" hole f/3,050'to 3,250',wob 10K, 9 bpm-374 psi,80 rpm- 4100 ft/lbs on bottom, 22 ft/hr. CBU x 2 to clean up hole at shakers, 9 bpm-745 psi, 85 rpm-3,000 ft/lbs off bott. POOH for BHA change, LD BHA#2. Bit grade 1/1. MU directional BHA: 9-7/8" PDC HC 604Z w/0.7777 tfa+6 3/4" Ultra X-treme motor(1.10 bend)+NM stab+2 flex DC's+MWD+UP Sub+NM filter sub+2 flex DC's+1 HWDP. Break Circulation and pulse test the MWD,All good. Trip in with 5" HWDP from the derrick. PJSM,trip in the wellbore with 62 singles from pipe shed F/927'to 2,884'. Fill pipe while moving spinners to off drillers side. Service rig and topdrive,drawworks and wash pipe. Trip in taking weight at the float collar, coming up pulling tight. Break circulation washing and reaming through the float and shoe. Continue washing and reaming to bottom at 3,250' @ 180 FPH logging the hole drilled with the clean out assembly. Drill F/3,250'to 3,390'with 435 gpm @ 1,300 psi, 60 rpm, 3300 tq. 3/23/2013-Saturday Cont drilling 9-7/8" hole f/3,390'to 4,774', 3K wob, 13 bpm-2300 psi, 65 rpm-3,200 ft/lbs on bott torque, ROP 88 to 200 ft/hr, max 103 units gas, 11.7+ppg-47 vis. This assembly drilled 1,384' in the last 24 hrs with 13.3 on btm hrs,the average ROP= 104 ft/hr; Pump 23 bbls 290 vis sweep at 558 gpm, 2,540 psi,80 rpm and 4,500 tq. Saw no change in cuttings when the sweep come back, hole staying clean while drilling. Shut down and monitor,well static. Pump dry job. Short trip F/4,774'to 3,073'. Tight spots encountered with 30k to 50k over 4,350,4,161,4,117, 3,925, 3,668,3,392, 3,166. Tight areas that needed worked through F/4,295 to 4,225,4,063 to 4,042, 3,992 to 3,985, 3,587 to 3,584, 3,565 to 3,560, 3,545 to 3,540, 3,188 to 3,182. Monitor well,static. Trip back in F/3,073'to 3,773, No Issues so far. 3/24/2013-Sunday Cont RIH f/3,773'to 4,715' (wiper trip). MU topdrive,wash last stand to bottom at 4,774' and had no fill. Cont pump DP volume at 11 bpm-1,826 psi, 60 rpm-3,300 ft/lbs off bott torque, also pumping 20bbl hi-vis sweep. Cont drilling f/4,774'to 5,594', 12K wob, 13 bpm-2,900psi,4,000 ft/lbs on bottom torque, night crew held spill drill w/3 minute response time. Drill F/5,594'to 6,037' with 12k wt,6k tq, 70 rpm, 561 gpm with 3,200 psi. Drill F/6,037'to 6,289' with 12k wt, 70 rpm, 6k tq, 550gpm with 3,220psi. 171k up, 156k dn, 164k rt. In the last 24 hrs this assembly drilled 1,515' in 13.7 on btm hrs. Average ROP is 110.5 ft/hr. Total run=119.3 ft/hr. Pump Hi/Vis sweep, when sweep returned to surface the cutting mass increased slightly. Monitor well,Static. Pump dry job. Short trip, wiping out tight spots. 3/25/2013-Monday Cont wiper trip POOH f/5,595'to 4,774', had five tight spots to work through, did not have to backream or circ. Cont POOH f/4,774'with numerous tight spots pulling 40K over. Cont POOH to 3,250' (dumb iron stop point) and still had a few tight spots. Cont POOH to get BHA into casing, had to MU topdrive and circ BHA clean at shoe (upper stab loaded with clay). Cont pull BHA into shoe. PJSM,slip and cut 100' drill line,service rig/topdrive, monitor well, static. PJSM, RIH f/casing shoe to 6,229', calibrate block height, MU last stand. Worked through some tight spots at 5,881', 5,936', 5,982', 6,048', 6,070'and 6,119'. Break circ and wash last stnd to bottom at 6,289', pumped hi-vis sweep and circ hole clean,getting good amount of coal at shakers, pumped second sweep. Had max of 449 units of gas at bott up. Cont drilling 9-7/8" hole f/6,289'to 6,604', 13 bpm-3,200 psi, 70 rpm-6,000 ft/lbs on bott torque, 7K wob. Drill F/6,604'to 6,835', 15k wt, 70 rpm, 6,500 tq, 560 gpm with 3,150psi. This assembly drilled 549' in the last 24 hrs with 8.9 on btm hrs. ROP = 61 ft/h. 3/26/2013-Tuesday Cont drilling 9-7/8" hole section f/6,835'to 7,125', 10K wob, 13 bpm-3100 psi, 70rpm-7,000 ft/lbs on bottom torque. At 7,125'we drilled into a depleted gas sand 35'to 40'feet thick, had no indication of fluid loss but ROP did increase to a depth of 7,161'+/-then dropped off to 55 ft/hr. Cont drilling ahead as normal f/7,161'to 7,549', wob 10K, rpm 50, GPM 552,TQ on bott 3-8 TQ off 4k. SPP on bott 3,400, PU 195k, s/o 182k ADT 8.5 hr,AST.9 hr, hrs on jars 77.9 crew held kick drill at 7438'. Continue drilling f/7,549'T/7,615', p/u 190k, s/o 188k, spp 3,280 psi,GPM 556, trq off 4k, Bit hrs 52,Jar hrs 78.9, Motor hrs 75.9,ADT 15.6 ART 13.7 AST 1.9. Circulate bottoms up @ 7,615'. Short trip F/7,615'T/6,590'. Back ream tight hole F/6,590'T/6,565'. Injected 1697 bbls drilling fluids, 131 bbls water. Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date SRU 24-15 50-133-20609-00-00 213-007 2/15/13 Daily Operations: 3/27/2013-Wednesday BROOH f/6,983'to 6,036'at 550 gpm-3,000psi, 80 rpm-3 to 10K off bott torque. Pump hi-vis sweep to clean up hole, 560 gpm-3,130psi, 80 rpm-4K off bottom torque. Cont POOH on elevators f/6,036'to 4,524',still have 20K to 40K overpull along this 1,512' interval. CBU while rotating/reciprocating 80 rpm-3K off bottom torque, clean at shakers. Cont POOH on elevators f/4,524'to 4,271'with no overpull no problems. PJSM, PU and single in hole 50 jnts 5" DP from pipeshed. Drill crew lost 2-3/8" hollow metal drift down drill string. Eased into pumps staging up to 550 gpm-2,880 psi (normal off bottom psi), notified Drill Engineer and Drill Manager. Decision made to cont single in hole and resume drilling ops. PJSM, cont PU single in hole with 5" DP from pipeshed f/5,565'to 7,557' ;work through tight spots @ 4,8107 4,831'-5,46775,495'- 5,580'/5,707'-5,846'/5,855'/5,910'-5,974' -7,547'. P/u std 106 wash down T/7,615', pump hi vis sweep @ 550 gpm, 3,200 psi. Drill F/7,615'T/7,718',wob 5/8, RTW 195, p/u 201k,s/o 189k,gpm 540,spp on 3,300, spp off 3,125,tq on 6/8,tq off 4.5, RPM 70,ART 2.6,ADT 3.4. Drill F/7,718'T/7,841', p/u 205k, s/o 192k, rtwt 198,tq on 8,tq off 4,gpm 550,spp 2,950, ADT 7.8,AST 2.8,ART 5.0, hrs on jars 83.9, motor hrs 90.6, bit hrs 59.8 injected 827 bbls drilling fluids, 175 bbls water. 3/28/2013-Thursday Cont drilling 9-7/8" hole f/7,841'to 8,079',while rotating: 8-11K wob, 543 gpm-3,310 on bott-3,110 off bott,80 rpm-5-8K on bott-4K off bott. ROP 13 to 106 ft/hr while sliding: 6-12K wob,462 gpm-2937 on bott, ROP 6 to 21 ft/hr. Drilled into formation 77-3 at 8,040', had increase in ROP to 50+ft/hr while sliding and an increase in gas spikes from 330 to a maximum of 7,688 units. Increased mud weight from 12.7 to 12.8. Cont directional drilling 9-7/8" hole f/8,079'T/8,162' Rpm 80, wob 5/12, rtw 204 p/u 211k, s/o 196k, spp 3,350 on, 320 psi off botton,tq on 5.5k,tq off 4.1k,gpm 544,ADT 7.5,ART 2.5, ast 5.0, bit hrs 71.9, hrs on jars 89.7. Continue drilling F/8,162'T/8,260',wob 12k, rpm 80,gpm 530, p/u 212k; s/o 197k, rwt 206k, tq on 5.5k,tq off 4.2k,ADT 16.6 hrs,AST 9.0 hrs,ART 7.5 hrs, Bit hrs 76.4,jar hrs 90.9, motor hrs 113.6'. Injected 559 bbls drilling fluids, 100 bbls water. 3/29/2013-Friday Cont directional drilling 9-7/8" hole f/8,260'to 8,388',while rotating: 10K wob, 13 bpm-3400 psi, 80 rpm-7,750 ft/lbs on bott torque,42 units background gas, 10 ft/hr+/-. While sliding: 23K wob, 13 bpm-3283 psi, 24 units background gas, 6 ft/hr+/-. Added inexcess lube to 1/2%to help sliding. Cont directional drilling 9-7/8" hole f/8,388'to 8,442',wob 19k, rpm 80spp 3450,p/u 219k, s/o 201k,tq on 7k,tq off 5k, rtw 211k,ADT 9.4,ART 4.6,AST 9.6 hrs, hrs on mtr 131.5,jar hrs 95.5 bit hrs 89.8 circulate 1.5 bottoms up 80 rpm, 556 gpm, p/u 219k s/o 201k, mw 12.8 vis 56. Monitor well, POH 15 stands pump dry job. Continue tripping out of hole. Injected 572 bbls drilling fluids, 100 bbl water. 3/30/2013-Saturday Cont POOH for BHA change,f/4,230'to 4,016' rack back in derrick. Cont POOH LD singles in pipeshed (derrick full)f/4,016'to BHA at 927'. Cont POOH f/927' rack back HWDP and flex DC's,flush and LD MWD, motor and HC604. MU HC505XX bit jetted at 0.8836, 6-3/4" ultraextreme motor+NM stab+flex DC's+MWD+UP sub+NM filtersub+flex DC's+HWDP,swapped out jars(could not remove drift from previous jars)+HWDP. Cont PU RIH with 73 singles from pipe shed. Hit tight spot @ 3,229, work through, continue in hole T/3,636'jt 84, m/u top drive and wash through bridge,full circulation before washing out bridge, lost circulation after cleaning out, attempt to regain circulation,fill hole with trip tank while pumping down pipe. POOH F/3,636'T/shoe @ 3,023', attempt to fill hole through kill line&TT, pump 50 ppb LCM pill through kill line total bbl lost 321. Build 10.0 ppg mud volume while pumping 10bbls mud with trip tank every 5 min,total losses to well @ 24:00 hrs 620 bbls, regain hole fill @ 01:15.Trip in hole F/3,009'T/3,478', circ over top of hole w/TT, 10 bbl losses to hole while tripping in. Lost rate went F/6bbl/min to 2 bbl/min @ shoe. Pump 50 PPB LCM pill @ 3,478', pump pressure 530 @ 3 bbl/min, lost 74.5 bbls while spotting pill, lost rate increased while pumping pill. POH 1 stand and circulate over top of well w/TT, 1-3% returns 14 bbl loses. Continue keeping hole full w/TT while monitoring well for losses,total losses from TT 24 bbls in 2 hrs-total losses to well 750 bbls Injected, 534 bbls drilling fluids & 100 bbls water. 3/31/2013-Sunday Cont to soak LCM pills while treating surface volume to 15 ppb LCM, monitor hole on trip tank. Fluid loss dropped f/6 bph to 4.5 bph loss over 4 hours, change shaker screens from 170/200's to 80's to reduce LCM loss at shakers, bit depth =3,342'. Mud wt in 10.5 ppg. With surface volume at 15 ppb LCM broke circ at 3 bpm staging up to 4 bpm, had max gas of 463 units at bottoms up which dropped to 130 units. Mud wt in 10.5/out 12.0 ppg. Gas units dropped to 30 units but still boiling good at surf. With mud wt 10.7 in and out,tripped in hole slow,4 stnds and 11 singles to 3,084', had tight spot at 3,636', rotated string 180 deg and went through with no problem. Had good pipe displacement the entire run. Well appeared static. MU topdrive, broke circ at 4 bpm, max gas 33 units at bottoms up, no loss and no gain. Mud wt in 11 ppg/out 10.8 ppg. Shut dwn pump,well static but still have rolling boil at surface. Gas still at 33 units. Cont ease in hole f/3,984'to 5,281'with no problem, hole and displacement good. Broke circ at 3 bpm-609 psi,stage dup to 4 bpm-640 psi,good returns, max gas 21 units at bottoms up, mud wt in 11/out 11.3,then up to 11.1 in/12.7 out. Canrig only showing 23 units gas but still rolling boil at surface. Used rig handheld gas monitor at rotary and pegged it out showing high CO2. Canrig equipment does not read CO2. Shut down and monitor,well static, still boiling. Cont ease in hole f/5,268', had tight spot at 5,463', rotated string 180 deg and eased dwn through it no problem. TIH to 6,510' and filled pipe. Cont TIH to 7,496'which put us 336' below the depleted 40' of sands(7,125'to 7,160'). Had up to 300 units gas in displacement fluid while RIH with stands. MU topdrive and break circ at 3 bpm to fill pipe at 7,460', increased rate to 4.5 ; bpm-792 psi,gas units dropped to 29 during initial circ, then increased to 569 units, 23 bbls lost to hole. Trip in hole f/7,460't/8,087', Fill pipe. Continue tripping in hole T/8,377'. M/U top drive and circulate @ 3 bbls/min,SPP 451,gas 54 units,wash down 8,419' @ 130 stks/min, slow pumps back to 3bbm/min-flow nipple overflowing, continue circulating gas out, increase pump stks t/208 stks/min, 1500 units gas @ 19,300 stks, mud wt in 11.7, mud wt out 11.8. Continue circulating, increasing pump rates,change shaker screens to 140's. Injected 557 bbls drilling fluids, and 100 bbls water. 4/1/2013-Monday Perform flow check,fluid dropped 2-1/2' in well bore in 15 min. Less than 1 bbl loss per hr. Resume circ at 9 bpm-1,693psi, gas at 2,166 units, mud wt in 11.5+mud wt out 11.4. Reduce pump rate to 6 bpm (boiling over top of riser)-919 psi, bit at 8,407', below the 77-3 zone(8,040'-8,070'), at 06:30 mud wt in 11.5/out 11.5. At 07:00 mud wt in 11.5/out 11.6,gas at 2,100 units, increased pump rate to 10.5 bpm-2,272psi,gas at 126 to 2,200 units, boiling at surface seems to be diminishing, mud looking more foamy. At 08:30 increased pump rate to 12 bpm-2340psi,gas at 2,158 units, no problems with spilling over at flow riser. Start increasing mud wt in 0.2 ppg increments to 11.8 ppg,gas at 2,155 units. At 10:30 mud wt in 11.8/out 11.6, gas at 1,730 units steady. Circ at 520 gpm. Cont increase mud wt to 11.9+ in/out,gas at 1,000 to 1,300 units, no losses. Cont increase mud wt to 12.1 in/out,gas at 49 to 1,200 units, circ at 12.4 bpm. Have 12.1 ppg in/out, RIH 1 stnd to 8,442', checkshot and commence drilling f/8,442'T/8,580',sliding: 5 to 10K wob, 528gpm-2,895psi,gas dwn to 262 units, PVT 530 bbls, 30%flow, up wt 214K, 5 to 50 ft/hr ROP. At 8,500'fluid losses increased to 80 bbl/hr, started cutting mud wt back from 12.1 to 12 ppg. Reduced pump rate f/528 to 450gpm-2,375psi. Rotating:8K wob,452 gpm-2395 psi, 60 rpm-7,300 ft/lbs on bott torque, rop 44 to 55 ft/hr,gas up to 1,100 units. Cut mud weight back to 12.0 ppg, continue drilling @ reduce pump rate 450 gpm, increase LCM @ 10 ppb,SPP 2400,wob 5-10k, 65 rpm,tq on botton 7k,tq off 4.8k, p/u 223k, s/o 205k, rtw 220k,total losses in last 24hrs, 377 bbls. Drill F/8,580'T/8,682',wob 8k, 7k tq on 4.8, 510 gpm, SPP 2560 psi, p/u 223k,s/o 207, rtw 216k, ADT 4 hrs,AST 2.8 hrs,ART 1.2 hrs, mw in 12.0, mw out 11.9, lost 71 bbls F/00:01 T/05:00, PH of mud 11 ADT 8.5 hrs total,AST 6.5 hrs total,Jar hrs 2.0 motor hrs 36.3, bit hrs 8.5. Injected 418 bbls drilling fluid and 100 bbls water. 4/2/2013-Tuesday Continue drilling F/8,682'T/8,792'wob 8k,tq on 7.5k,tq off 4.7,spp 2,250, gpm 467, p/u 227k, s/o 209k, rwt 217k,ADT 4 hr,AST 2.3,ART 1.7, bIT HRS 12.5, 71 BBLS LOST(11.8 bph loss rate). MUD WT 12.0 PPG. Continue drilling F/8,792'T/8,965', wob 9k,tq on 7/9k,tq off 5.5k,spp 2600,469 gpm, p/u 231k,s/o 215k, ret 224k, mud wt 12.0 ppg, adding 20 ppb LCM (7.1 bbl/hr loss rate) max gas 1682 units. Continue drill F/8,962'T/9,152',wobl0k,tq on 8k,tq off 5.6,spp 2560, gpm 473 p/u 235k, s/o 215k, rwt 225k, lost 66.3 bbls,ADT 8.3,AST 2 hrs,ART 6.3 hrs Hrs on jars 10.7, hrs on bit 20.9(11.05 bph loss rate). Continue drilling F/9,152'T/9,355',wob 8k,torq off 6.2,spp 2,640,gpm 478 p/u 238k, s/o 216k, rwt 226k,ADT 16.7 hrs total, ART 12 hrs,AST 4.7 totals. Total bbl lost F/00:01 T/06:00=66bb1 (11.0 bph loss rate) 337 bbls loss 24 hr. Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date SRU 24-15 50-133-20609-00-00 213-007 2/15/13 Daily Operatons: 4/3/2013-Wednesday Drill 9-7/8" Intermediate hole from 9,355'to 9,452'. UP 240k, DN 218k, R 228k,TQ 6500 @ 80 RPM, 5-15k WOB, 11.3 bpm, 2,560 psi. (5-8 bph loss rate). Drill f/9,452't/9,513'. Losses diminished t/zero while increasing MW f/12.2 t/12.4. Maintain LCM concentration @ 20 ppb. CBU to clear solids from Well Bore. 11.5 bpm, 2,680 psi (0 losses). F.I.T to 12.8 ppg EMW. (12.4 ppg test MW,80 psi test pressure, 3600 depth). Continue drilling from 9,513'to 9,576'. Increase MW f/12.4 to 12.5 ppg. WOB 18/20k, Rpm 80,tq on 8.8k,tq off 6.8k,spp 3075,gpm 480, p/u 246,s/o 220k, rtw 236k,ADT 7.3 hr,ART 4.5 hr,AST 2.8 hr,Total hrs on jars 21.5, mud losses 0, max gas units observed 2,332. Circulate bottoms up, @ 478 gpm,2634 PSI, 77 rpm's,Short trip 10 stands F/9,576'1/8,940' p/u 248k, s/o 220 well bore clean. TIH to TD. Circulate bottoms up SPP 2,810,490 gpm, observed 1,503 units @ 10,500 stks and 1,384 units @ bottoms up @ 14,000 stks, increase mud weight to 12.6. Flow check well,Trip out of hole for BOP test. Injected 774 bbls drilling waste, 231 bbls water. 4/4/2013-Thursday POOH for BOP test from 9,215'to 7,944'. (4.9 bbls over calc displ. pulling first 25 M/U TD and break circ to clear potential gas entry from pulling across Gas Sand. Stage pumps up slowly f/3 bpm to 11 bpm. Begin losing fluid quickly(30 bbls). Reduce pump rate to 3 bpm and pumped 28 bbl LCM Pill @ 50 ppb concentration. Circulate LCM Pill to suspected trouble zone below Casing Shoe(Sterling Sand). B/U Gas peaked @ 800 units,then dropped t/180. Increase rate t/4 bpm,430 psi. Losses increased f/10 bph t/18 bph during final 50 bbls of displacement. POOH 15 stds t/7030(17.2 bbls over calc displ.) Overpulls of 35k @ 7,195' &7,165'. Brk circ @ 3 bpm, 320 psi. Begin moving pipe up hole, but started packing off. Stop pump. Work std to clear obstruction. Resume pumping @ 3 bpm. Pump 40 bbl LCM Pill and displace out of Drill String. Hole staying full, but losing @ pump rate of 3 bpm. Mud in annulus falling @ 3 bpm. Pump thru Kill Line,40 bbl LCM Pill and Top Fill Annulus with 177 bbls to spot LCM @ Csg Shoe. Pump 10 bbls every 15 min.to move Pill across Sterling Sand. Gained circulation after displacing 247 bbls. Attempt circ do Dp. @ 3 bpm. Losing 2.5 bpm. Monitor static loss w/Trip Tank(losing 21 bph) monitor f/1 hour to verify stable & build mud volume. POOH f/7,003'to 3,032'. Hole taking 52.7 bbls over calc displacement,work tight spots F/6,737'through 4,028',total losses F00:01 1/24:00 hrs 4-4-13 =513 bbls. Pump 58 bbls 50ppb LCM pill, @ 3,032', @ 3 bbls/min losses while pumping= 19.6 b. Monitor well bore losses every 10 min 1st 10min =2.5 bbls, 2nd 10-2.5 bbls, 3rd 10-3 bbls,4th 1.9 bbls, 5th =1.8. Close Annular&apply 40 psi to simulate 12.8 ppg&force LCM into problem zone. Pump 4.5 bbls. Pressure dropped f/40 psi to 25 psi in 1 minute. Monitor losses. 4/5/2013- Friday Circulate across top of hole with Trip Tank Pump to monitor losses. Bit @ 3,040'. Hole taking 12 bph. At 25 bbls away, losses diminished to 3 bph. Begin working pipe to give surge pressure and push LCM into loss zone. 6 bph w/working pipe. Stop pipe movement& monitor Well (3 bph loss rate). Lay down 8 sgls to place bit above remainder of Pill. Pump 40 bbl LCM Pill @ 60ppb and displace out bit(lost 29 bbls while pumping). Continue POOH laying down Dp singles. BHA: Rack back HWDP&Jars. L/D Directional Tools. Grade Bit- 1,1,WT,A,X,I,CT,TD. Hole took 26.6 bbls over calc.displacement on trip out from Shoe (Ave 4.3 bph). Prep for BOP Test: Make up Wash Tool to Sgl. &TD. Flush out Well Hd. & BOP. Break down previous Test joint assy and make up new assy w/20' Pup. Pull Wear Bushing. Make up Test Plug&Seat in Well Head. Rig up test equipment. Test BOP and related equipment to 250L/4000H psi. Hold each test f/5 min. Intermitten problems with VBRs leaking by top seal. Open doors and inspect Top Seal. CMV 11 &Choke Line Manual valve failed initial test(grease&retest). Upper Pipe Rams appear to be in good condition. Suspect o-ring under Wear Plate has failed. Currently removing Wear Plate. 4/6/2013-Saturday Open Upper Rams and inspect(GOOD) Replace Wear Plate&0-rings.Test CMV#11 while working on Wear Plate. Make up Test Jt& purge air. Hole taking 1.75 bph. Test Upper Pipe Rams and Manual Choke Line Valve (Good Test). R/D test equipment and install Wear Bushing. M/U BHA#5: RR2 Smith Mill tooth, Bit Sub w/Flt, Stab, (4) HWDP,Jars, (21) HWDP. TIH picking up (60)singles f/Pipe Shed. Continue TIH w/stands to shoe @ 3,023'. Brk circ and CBU @ 4 bpm, 220 psi. 1,170 max gas from B/U. Loss rate @ 2 bph. Shut in and pressure up to squeeze LCM into Thief zone. Injected 10 bbls. Shut in pressure stabilized @ 80 psi (13.0+ EMW @ shoe). TIH 3 stds t/3,200. Pump 25 bbl LCM Pill @ 80 ppb concentration & pump to balance across BHA. POOH 5 stds to place Bit above Pill. Squeeze LCM Pill into Thief zone in 10 bbl stages while monitoring pressure. Pumped (8)cycles and squeezed 68 bbls into formation. Final shut in pressure holding @ 115 psi (13.33 EMW). Monitor shut in pressure. Pressure bled to 90 psi over 30 min. Bleed to zero. Pump and additional 5 bbls. Pressure stable @ 105 psi for 5 min. (13.25 EMW). TIH from 2,880't/4,550', hole good. CBU @ 4,550' @ 3bbl/min 270 psi increase pump rate T/4bbl/min, @ 340 psi,4bbls loss while circulating,total losses F/tour=50 bbls, p/u 132ki s/o 128k, 2247 units gas @ 5700 stks.Trip in hole F/4,550'T/7,052', P/u 178k, s/o 174k, lost 15 bbls to hole on trip, CBU @ 7,052'. Gas peaked @ 1,681,then diminished to 540. Returns began to foam. Handheld detector registered 50 ppm CO. Continue to circ gas out. Injected 675 bbls drilling fluids, 100 bbls water. 4/7/2013-Sunday Continue to circulate gas out @ 7,020'. TIH f/7,020'. Tag obstruction @ 8,577'. Wash & Ream to clear obstruction t/8,590'. Gas units climbing w/Reaming. Circ&Cond t/clear gas(2325 Max) 6 bpm, 690 psi. TIH f/8,600'. Taking wt. @ 8,853'. Forced t/Wash & Ream f/8,853't/9,000' (Swollen Clay). TIH f/9,000't/TD @ 9,576'. W&R final stand. Minimal losses(2 bph loss rate) CBU X 2. Stage pumps up f/4 bpm t/11 bpm as dictated by Shakers. No losses while CBU. Max Gas @ 2,300' units. Recip pipe throughout circ. Rotate @ 60 RPM 1st B/U Short Trip(15)stds to wipe Reamed section. Minimal overpulls on trip out. Clean on TIH. 9 bbl loss during trip. CBU to clean hole and clear gas. Encountered 6 gas peaks during 1st B/U starting f/6,350' Lag and ending @ TD Lag. Spikes of 2,236', 2,558', 2,558', 2,578', 2,598' & 1,934', then diminished to 140 units. Shut do pumps f/20 min to simulate conn. CBU to find gas entry depth. Calucated depth F/ strokes=8,220', max gas 2,361 units. Circulate and increase mud weight F/12.5 T/12.6,Total losses F/tour 35 bbls. Continue increasing mud weight T/12.6, Loss rate @ 3 bph. Monitor well F/30 min, no flow, increase mud weight to 12.7, Circ @ 9 bpm, 1700 Back ground gas diminished to<50 units and loss rate reduced to<2 bpm. POOH f/9,576'to 8,234'. Straight pull on elevators. Hole taking correct fill. 4/8/2013- Monday POOH. Straight pull on Elevators from 8,234'to 7,925'CBU @ 7,925'to clear Gas from Annulus. Max gas 430 units. Continue to POOH from 7,925'to 3,015' (Csg Shoe) Monitor Well (Static). Continue to POOH laying down (60) Dp singles to HWDP. Rack back HWDP, Stab& Bit. PJSM w/Wire line crew, rig up to run logs. RIH w/wire logs,ACRT,wave sonic, G tech,tools stopped @ 7,990'. POOH with logging tools change out guide to hole finder. TIH,tools stopped @ 7,990'. Log F/7,990'T/3,023' @ 30' min, 3 bbls lost while loging 1st run. Contine TOH w/wire line, P/u DSNT&SDLT tools. TIH with logging tools. 4/9/2013-Tuesday POOH.Straight pull on Elevators from 8,234'to 7,925'. CBU @ 7,925'to clear Gas from Annulus. Max gas 430 units. Continue to POOH from 7,925'to 3,015'. (Csg Shoe) Monitor Well. (Static) Continue to POOH laying down (60) Dp singles to HWDP. Rack back HWDP,Stab& Bi. Rig up to run logs. RIH w/wire logs,ACRT,wave sonic, G tech,tools stopped @ 7,990'. POOH with logging tools, change out guide to hole finder. RIH,tools stopped @ 7,990'. Log F/7,990' T/3,023' @ 30' min, 3 bbls lost while loging 1st run. Contine POOH w/wire line. P/u DSNT&SDLT tools. RIH with logging tools. 111 Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date SRU 24-15 50-133-20609-00-00 213-007 2/15/13 Daily Operations: 4/10/2013 -Wednesday Continue to POOH, laying down Dp from 5,300'to Shoe @ 3,023'. Monitor Well for 10 min. Pump 25 bbl LCM Pill @ 80 ppb concentration. L/D down remaining Dp, HWDP &Jars. Brk& inspect Bit. 21.5 bbl loss on TOOH. Close Blind Ram. Change upper Rams t/7-5/8". Pull Wear Bushing. Install test plug. Test Upper Rams to 250 low/4000 high. RD Test Joint and test equipment. R/U Weatherford tools. Prep rig floor for picking up casing. PJSM on running Csg. Make up and BakerLock Shoe Track. Install centralizers as per program. Fill Shoe Track with mud and verify operation of Floats. Run 7-5/8" P-110 BTC casing,filling every jt with fill up line tojt#60. P/U 10' markerjt. and continue in with 7-5/8" L-80 BTC casing to 3,600'. Losses= 2.2 bbl/hr since 00:00 hrs Background gas+/-300 units. 4/11/2013 -Thursday Pick up& RIH with 7-5/8", 29.7#, L-80 casing from 3,490'. 2.2 bph loss rate. Loss rate increased to 12.5 bph f/3,700't/4,075', then stablized @ 6.5 bph. Displ. gas slowly increased t/750 units. Start Degasser. Units stable @ 450, 5,652'. Pitwatcher detected change in loss rate. Check for flow. Well had slight flow. M/U Head Pin and brk circ @ 3 bpm, 390 psi. At 27 bbls pumped, pressure dropped t/220 psi & lost returns. Attempt to keep Annulus full while mixing LCM. Gained returns via Kill Line. Able to keep hole full w/Trip tank. RIH w/casing slowly f/5,652. Losses @ 45 bph,then diminished to 10 bph. 6,070': Good return flow when in slips,then diminished flow when lowering casing, indicating losses due to surge. Lost full returns suddenly @ 6,264'. Pump 52 bbl LCM Pill @ 80 ppb concentration down Annulus via Kill Line Top fill Ann.t/displace Pill t/Thief zone. Gain returns after 205 bbls chased placing Pill @ 7-5/8" Shoe. Hole taking 63 bph. Pump every 5 min.to bring Ann.fluid to Flowline& record pumped volume. Losses diminished to 36 bph. LCM Pill now displaced below 7-5/8"shoe. Attempt circ. down Csg(unsuccessful). Circulate across top of hole and monitor losses t/displace Pill down to depleted sand @ 7,124'. Losses @ 15.6 bph. Well took 44 bbls placing Pill across probable Thief zone. Final loss rate @ 3 bph. RD circ hose and remove Head Pin. RIH slowly w/7-5/8" Casing f/6,264't/7,000', check losses-0 losses static. Continue running casing through loss circulation zone @ 7,124' and to the total depth of 9,563'.+/- 15 bbl/hr losses through out the last 2,000'run. Land the 7-5/8" casing in the hanger. Attempt to break circulation with 65 stks/min @ 390 psi, Pump 30 bbls away. Pump 2,000 stks pushing LCM pill up to loss circulation area @ 7,124'. Monitor well while LCM pill works into formation. Pump 100 stks and shut down moving LCM pill. 4/12/2013-Friday Monitor hole with Trip Tank. Pump 100 stks (4.5 bbl)down casing every 5 min to move LCM Pill across loss zone. Losses diminished to 6 bph over 3 hrs. Prep for cement job. Mix Mud Push II. Clean solids f/Rock Washer tank,so tank could be used for displacement fluid (Produced Water) Blow air thru cement line. Transport Produced Water f/Production to holding tank. PJSM. Pump 5 bbl water. PT lines to 1,200/4,000 psi. Pump 13.5 ppg Mud Push II Batch Lead Cement. Add 50# u CemNET to 1st 25 bbl. 18:50- Pump 14.0 ppg class G Cement @ 5 bpm, 980 psi. Pump 145 w/o CemNET. Add 250#CemNET 4q to next 150 bbls. Lead Cement pumped =320 bbl, 14.0 ppg, 1,137 sx, 218 bbl mix water. FCP=700 psi, 20:05- Batch 15.3 AeitY ppg Class G Tail Cement. Pump 27 bbls (560 psi immediate psi). Trouble getting product. Stop pump. Batch up 25 bbl tub& add 50#CemNET LCM. 3 min to batch Pump remainder of Tail Cement @ 5 bpm, 600 psi. Tail Cement pumped =58.5 bbl, 15.3 ppg, 244 sx,42 bbl mix water. FCP =600 psi 64% returns initially when pumping Mud Push, but diminished and lost full returns when pumping Cement. SLB Displaced Cement w/437.5 bbls of 8.6 ppg Lease Water f/Field. Caught Cement w/5.5 bpm, 93 bbls, (500 psi). Reduced PR to 4 bpm t/maintain 500 psi. Slow PR t/3 bpm w/130 bbls displaced & 2 bpm @ 150 bbl displ to place Lead Cement across Loss Zone. Maintain 2 bpm to 240 bbl displ. Pressure increased this 90 bbl f/500 psi t/1,275 psi. Increase rate to 2.5 and then 3 bpm. Pressure increased steadily f/1,275 to FCP of 2,670 psi. Did not bump Plug. CIP @ 23:38. Bled pressure to check Floats (good) Bled back 3.75 bbls. Did not reciprocate pipe during job. Blow down lines and rig down cementers. PJSM, R/D cement head and swedge, drain stack, pull landing jt. M/U XO, running tool and 7-5/8" packoff, set packoff and run in lock downs. Test void to 250 psi for 10 min. and 3,000 psi for 10 min. Lay down landing jt. and running tool and clear rig floor. Remove and lay down casing bails, pick up short bails and 5"elevators. R/U spinners hawks, service tongs, Install wear bushing(9" ID), L/D 5" drill pipe from derrick. 4/13/2013-Saturday Lay down (50)stands of 5" Dp from Derrick. Clear Rig Floor. Change Upper Rams to VBRs and Lower Rams to 4". Change Saver Sub to HT-38 and install new Bell Guide. Install Test Plug. Rig up test lines and purge air from system. Off line: Reduce MW in surface volume from 12.0 to 10.5 ppg. Rack and SLM 4" Dp in Pipe Shed. Test BOP and related equipment to 250L/4,000H f/10 min ea.test.Test Annular to 250L/2,500H. Test LEL& H2S Gas Alarms. Perform Accumulator precharge test. Test witnessed by Justin Miller from BLM. Upper IBOP valve did not test. Justin Miller will return @ 06:00 hrs to witness the remainder of the test. Rig up wire line and run in with temp log tagging wiper plug @ 9,303' and logging up locating top of cement @ 6,030'. Rig down logging tools and sheve from derrick. Change out upper IBOP valve on topdrive and grabber Hyd hose. 4/14/2013-Sunday Continue to install rebuilt Double IBOP valve on Top Drive,and manual choke. Continue testing BOP. Chase leaks to solve slow pressure bleed. Replaced (3) Needle valves. Tighten Flange connection between Mud Cross & Dbl Gate. Service Choke Manifold valve. Mud Seal on Upper Rams (DS)failed after passing previous tests. Open Ram Door and replace Mud Seal. RD Test equipment and install Wear Bushing. Prep for P/U Dp. Trip in the hole picking up 80 jts 4" drill pipe. Trip out standing 4" drill pipe back in derrick. Clear rig floor and moblize bit,subs, ect to rig floor. Strap and P/U BHA#7, Pulse test MWD Tools. 4/15/2013- Monday TIH picking up HWDP from 400'to 745'. BHA=745.02'. Continue to single in the hole w/4" HT-38 Dp f/745'. Drift ea jt w/2.437" drift 9,356'. Rig up to test Casing. M/U circ lines and brk circ @ 4.8 bpm, 900 psi. Pressure test Casing to 3,000 psi for 30 min. Pressure bled 50 psi to 2,950. Monitor annulus during csg test (ann on a vac). Bleed pressure& R/D circ. lines. Make connection and tag cement @ 9,445' (31' above Flt CIr.) Tag wiper dart @ 9,457' and drill Shoe Track from 9,445'to 9,547', 12' above the shoe. Displace Well Bore from 8.6 ppg Lease Water to 10.6 ppg KCL EZ Mud. Drill the remaining 12' of cement, shoe, rathole plus 24' new formation T/9,600'. Circulate Bottoms up and condition the mud for the FIT. Mud Wt 10.5+. Shut pumps down and stand 1 stand back pulling bit into casing shoe. ; Rig up test equipment and chart for the FIT. Perform a FIT @ 100 SPM recording pressures every 50 strokes. With 10.55 ppg mud in the wellbore the pressure needed to be brought up to 1,457psi for EMW of 13.5 ppg. The pressure was brought up to 1,464 psi and held for 10 min (Good Test). Drill Ahead F/9,600'to 9,655'with 250 gpm and 1,480 psi. 4/16/2013-Tuesday Cont. directional drilling 6-3/4" hole f/9,655'to 10,000'.WOB 5K, 280 gpm-2,367 psi, 70 rpm-6,400 ft/lbs on bottom torque. Did flow check at 9,748'w/slight flow. Have had no pit gain while drilling. MW 10.5+. Cont. directional drilling 6-3/4" hole f/10,000'to 10,179', pumping 310 gpm with 2,650 psi,36 rpm on the rotary and 5,500 ft/lb torque. PU/WT-181k SO/Wt- 156k, Rot/Wt-162, Background gas=32 units. Drill Ahead F/10,179'to 10,250' with 310 gpm and 2,500 psi, 35 rotary and 5800 tq. This assembly drilled 580' in the 15.6 on bottom drilling time, average ROP is 37 ft/hr with 58% rotating time and 42%sliding time. The well bore is showing a little flow during connections and a slight gain through the tour. Weighting up from a 10.5+to 10.7. Backgroung Gas is 64 units and holding. Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date SRU 24-15 50-133-20609-00-00 213-007 2/15/13 Daily Operations: 4/17/2013-Wednesday Cont directional drilling 6-3/4" hole f/10,250'to 10,744', WOB 5K, 60 rpm at 6,800 ft/lbs on bott torque, 304 gpm at 2,509 psi, ROP 61 to 200 ft/hr. CBU until clean at shakers, check for flow. POOH on elevators f/10,744'to 9,546', up wt 185K, hole in good shape. Calculated hole fill=7.2 bbls, actual hole fill=4.15 bbls. Have slight flow. Service topdrive and rig. RIH on elevators f/9,546'to 10,744'with no problems. Had 1,660 units gas at bottoms up then dropped right off to 79 units. Cont directional drilling 6-3/4" hole f/10,744'to 10,998', control drilling at 50 to 60 ft/hr so as to catch samples every 10' (as per Geologist). Drill F/10,998'to 11,120'with 304 gpm and 2,850 psi,55 rpm on the rotary and 8,400 ft/lb tq. Up/wt-198k Dn/Wt-162k Rot/wt-175k This assembly drilled 870' in 14 on bottom drilling hrs for an average ROP of 62 ft/hr with 22% sliding time and 78% rotating. 4/18/2013-Thursday Cont directional drilling 6-3/4" hole f/11,120'to 11,400',while rotating: WOB 6K, 50 rpm-7600 ft/lbs on bott torque, 300 gpm-2732 psi, ROP 50 ft/hr. While sliding:WOB 7-11K, 300 gpm-2,400 psi, ROP 4 to 14 ft/hr. Increased lube f/1/4%to 3/4% but still having trouble sliding (weight transfer). Also pumped 20 bbl hi-vis sweep w/nut plug and had no increase in cuttings at shakers. As per Drilling Engineer and Geologist decision made to rotate to TD. Cont directional drilling 6-3/4" hole f/11,400'to 11,598'with 305 gpm and 3,080 psi, 60 rpm and 11,300 ft/lb tq. While drilling weight up to 10.9 ppg. Drill F/11,598'to TD @ 11,710'with 305 gpm and 3,080 psi, 60 rpm and 11,300 ft/lb. Up/wt-202k, Dn/Wt-168k, Rt/180k. Drilled 590' in 15.6,Average ROP=37.8 ft/hr in the last 24 hrs. This assembly drilled a total of 2,134' in 48.2 drilling hrs for an average ROP of 44.2 ft/hr with 28%sliding time. At TD the well bore is 30.43' off the wellplan at a direction of 157 degrees. (11.45 right, 28' low) Circulate bottoms up stks @ 310 GPM and 2,530 psi. Shut down and check for flow for 15 min. Well flowing 4.3 bbls hr. Continue circulating weighting up the mud from 10.9 ppg to 11.1 ppg. 4/19/2013-Friday Cont increase mud weight f/10.9 to 11.1 ppg and check for flow. Flowing at 3.5 bbl hr. Increase mud weight to 11.4 ppg and perfom 30 min flow check. Well initially flowing at 10 bbl/hr but dropped to 1.5 bbl/hr over 30 min. Consulted with Drilling Engineer and decision made to POOH to shoe and monitor well for flow for one hour. Had to rotate string 3 rnds to right and slack off to break free. LD single and POOH on elevators f/11,691'. Had 15 to 20K overpull up to 11,250'then pulling good. Cont POOH to shoe at 9,562'. Calculated hole fill 11.2 bbls, actual hole fill 11.1 bbls. Put well on trip tank for monitoring. Slip and cut 115' drill line, calibrate block height,gained .8 bbls in 1.5 hrs. RIH 18 stnds,fill pipe, cont RIH to 11,710'with no problems. 190K up, 155K dwn. Tag bottom, no fill, circ sweep around until clean at shakers, max 822 units gas at bottoms up, rotate and reciprocate string, pumped full circ at 300 gpm. Monitor well 10 min,well flowing at 5 bbl/hr. Had 2 bbl loss while circulating. POOH f/11,710'to shoe at 9,562', up wt 190-200K. Calculated hole fill 11.2 bbls,actual hole fill 10.9 bbls for 34 stands to shoe. Worked tight spots @11,882', 11,622', 11,593'to 11,585', 11,564'to 11,556', 11,510' and 11,343'. Monitor well on trip tank f/1 hour. Gained 1/2 bbl in 1 hour. Discussed with Drilling Manager and Engineer, decision made to POOH, pumped 20 bbl 12.1 ppg dry job, blew dwn topdrive. POOH f/9,562'for logging, calculated hole fill=66.8 bbls, actual hole 63.7. Stand back HWDP and lay down BHA#7. 4/20/2013 -Saturday Clear and clean rig floor in prep for logging. PJSM,w/Halliburton and rig team, prep logging tools, RU sheaves,spot unit. MU 96'of tools consisting of ACRT, Flex Sub, Neutron Density, GTET. RIH at 09:30 am. Tool hung up at 9,855'. Attempted to work tool down hole and lost communication to logging tool assembly. Pulled into casing and attempted to get tool function with no success. POOH and changed out GTET tool. Still having power failure to caliper. Changed out Neutron Density tools. Still having power failure to caliper. Lay down GTET and Neutron tools, attempt to get caliper to function. Calipers not working. Decision made to RIH w/GR,Wave Sonic,ACRT, 3 regal standoff's, and hole finder. MU 69'tool string, RIH and tag bottom at 11,709'WLM. Worked through 2 spots. Start logging OOH f/11,709',tool string hung up at 11,385', pulling 9 to 12K on wire. Attempt to work free. Pulling from 65%to 80% on wire while trying to locate stripping kit. Hole still flowing at 1/2 bbl/hr. Increase line pull to 80%over 30 minutes in stages.60% Pull = 14,000k/80% Pull = 17,000k. Before pulling on the wire line a quick PJSM is held warning of Hazards. The well bore is flowing 1 bbl/hr,we have a 19 bbl gain in a 21 hr period. Wait on tools for strpping over,the rig hands cleaned the rig and around the location. Picked up and put tools away. 4/21/20_13-Sunday Cont wait on Halliburton stripping tools (f/fishing log tools), rig crews serviced MP#2, clean and organize around rig and location, rebuilt choke valves#10 and 11,C/O hanger bearing on cuttings auger,well flowing at 1 bbl/hr. Grease choke manifold valves,set liner and containment for upright tanks at skim pit site(for building 6% KCL batches), held fire drill in pump room. Re-positioned upper sheave in upper derrick(above board), Baker Fishing Rep on location at 15:30 hrs w/overshot, hangoff sub and pump out sub. Halliburton on location at 19:30 hrs, stage tools on rig floor. Held PJSM with entire rig team, Baker and Halliburton. Prep and clamp wire. Adjust upper sheave and install safety cable. Moblize wire line stripping tools to the rig floor. Pull slack in the wire line, measure and cut it. Insall spear head and rope socket and weight bars. Test socket with line pull for 5 min. P/U grapple and subs on the HWDP. Trip in stripping over the wire line. Starting out was slow, due to learning curve.Averaging 6 stds/hr. Had 14 bbl gain in last 12 hrs. Depth 1,330' at 06:00 hrs. 4/22/2013-Monday Cont strip over e-line with 4" DP,f/1,330'to 1,645', averaging 6 stnds per hour. E-line tension at 4,100 lbs while setting on plate during connections. Drag increasing on wire while stripping DP in hole. Stopped at 1,645'. Cut another 17'wire,to ensure proper tension while RIH, and to ensure wire is not double-backing around the overshot. Cont strip in hole over e-line w/4" DP f/1,645'to 7,030'. Well flow 1 bbl/hr. Cont strip in hole over a-line w/4" D f/7,030'to 9,543'. At the shoe circ bottoms up @ 285 gpm with 1,400 psi. Pumped a total of 10000 stks, max gas 2352 units,shut down and monitor(Slight flow}. Pump another Bottoms up to even up the mud Continue circulating and adding bar to even up the mud. Break off top drive, hook cable back and rig up for stripping. Strip in over wire line. 4/23/2013-Tuesday Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date SRU 24-15 50-133-20609-00-00 213-007 2/15/13 Daily Operations: 4/24/2013 -Wednesday POOH with overshot fishing assembly f/9476'. Recovered all 70' of logging;tools. Had one centralizer jammed into overshot with fishneck of tool. Keeper; pin for centralizer recovered also. Shold be no junk in hole. LD overshot; assembly and removed tool from grapple. Released Baker Fishing Rep and; Halliburton loggers. PJSM on BHA and TIH, MU BHA#9 (6 3/4" rollercone bit w/3x15 jets+bit sub;w/float+NM string stab+XO+6 jnts HWDP+jars+13 jnts HWDP);Trip in hole,fill pipe every 30 stnds to 9545'. ;CBU before exiting 7 5/8" casing shoe. Had 1080 units gas at bottoms up. ; Cont TIH f/9545'to 11320' (6 3/4" open hole);Work w/tight hole F/11313 T/11358, RPM 80, 362 GPM,spp 2700, RT wt 165k; p/u 230k,s/o 160k,;Wash & ream F/ 11,341 T/11,710, no fill;Circulate bottoms up, pump hi visc sweep; Short trip F/11710 T/11250', pulling 20/30k over first 350' off bottom. 4/25/2013 -Thursday Cont POOH on elevators f/11,250'to 11,190'. Had 20 to 30K overpull to 11,250'.; RIH f/11,190'to 11,710'wash last stnd to bottom. ;CBU at 305 gpm-2084 psi, rot and recip 80 rpm-6000 ft/lbs off bott torque, ; had a max of 433 units gas at bottoms up. No significant drop in chlorides or wt; Did have some rubble at shakers at bottoms up. Approx 5 gallon bucket of; cuttings 1" in diameter or smaller. ; POOH f/11,710' on elevators,first 3 stnds had 12 to 30K overpull then smoothed ; right out at 200K up weight. Had no overpull pulling to shoe f/11,470'. ; Pulled 34 stnds+single. Calc hole fill 12.2 bbls, actual hole fill 9.9 bbls. ; Monitored hole on trip tank f/30 minutes,flow went f/4 bbl/hr to 1 bbl/hr. ; Pumped 20 bbl dry job, dropped 2.4" drift w/80'wire, cont POOH f/9548'to; 2805', PJSM for lay down 4" drill pipe. Prep pipeshed to roll out DP.AM crew; held kick while trip drill at 6043',just prior to crew change.;Cont POOH f/2805' LD 68 jnts 4" DP, 1 jnt HWDP,jars and bit. Clear rig floor. ; Calculated hole fill for entire trip=70.5 bbls, actual hole fill=66.5 bbls. ; RU Weatherford to run 5" liner. ; Report now goes to "Completion"section of WellEz; Injected 577 bbls drilling fluids, 92 bbls water. 4/26/2013-Friday MU 5" liner shoe track and float equipment(Weatherford 5 3/4" OD bullnose float, 2 jnts 5" DWC BakerLok'd w/floating solidbody centralizer,Weatherford 5 3/4" OD float collar, 1 jnt 5" DWC Bakerlok'd w/floating solidbody centralizer, non- Baker 5 3/4" OD landing collar, 1 jnt 5" DWC BakerLok'd w/floating solidbody centralizer),checked float equipment (ok)., Cont RIH w/5" 15#L-80 DWC/C-HT liner(60 jnts total including shoe track). Installed one free floating solidbody centralizer on first 23 jnts,top filled pipe every 10 jnts while RIH, M/U HRD ZXP packer, mix and fill liner tieback sleeve with PalMix, allow to set up 30 minutes., Circulate liner volume while rigging down casing running equipment& rig up to RIH w/drill pipe., RIH with 5" liner on 4" drill pipe f/2367'to 5736'.Top filling DP between connections, and MU topdrive every 15 stnds to completely fill pipe. 4/27/2013 -Saturday Cont RIH w/5" 15# L-80 DWC/C-HT liner on 4" DP f/5736'to 9507',top filling every stand during connections, MU topdrive and filling every 15 stnds while TIH., MU topdrive and monitor well f/15 minutes (flow at 1.7 bbl/hr)stage pumps up to 291 gpm (7 bpm)at 1286 psi,at bottoms up had max 1686 units gas which tapered off to 22 units over 30 minutes. Mud weight cut back to 11.1 ppg out(11.4 in)and chlorides dropped f/33K to 31K at bottoms up. Ran degasser in pits during bottoms up. 11.4 in/out we shut dwn pumps. Crew MU pup jnts on Baker cement head while circulating.,Obtained rotating torque values inside casing w/Baker Rep. 10 rpm=2800 ft/lbs, 20 rpm=2800 ft/lbs, 30 rpm=3000 ft/lbs. Cont RIH w/stands of 4" at+/- 1 1/2 min per stnd.Top filling drill string between connections. RIH f/9507'to 11,689', MU 20' pup,slack off and tag bottom at 11,709'.Able to work string no problem., MU Baker cement head with circ hoses,valves etc already attached,total 8 minutes to MU head. Pulled to 250K and 275K with no movement of string. Applied 5K rotational torque to drill string,slacked off 5' and string freed up. Start circ at 4 bpm-970 psi, rotate string at 20 rpm-6600 to 7100K ft/lbs torque, Recip 12'stroke, up wt 186K, dwn wt 176K while pumping. Increased pump rate to 4.5 bpm-1044 psi, had max of 1044, units gas at bottoms up, increased pump rate to 5 bpm-1192 psi and cont to rotate/reciprocate while circ and cond mud for cementing. Circulated total of 4 hrs,gas as 47 units, no indication of packing off around liner hanger.SLB on location at 16:30 hrs and rigging up., G,�,� Held PJSM w/rig team, Baker and SLB on cementing liner. Covered risk of packing off, pumping schedule,volumes and differential sticking. Rig water at 90 degrees, pulled truck load off rig tank and replaced w/cold water. Cement water temp at 85 degrees. Blew air through hardline and SLB started priming pump unit at 17:45,SLB pumped 5 bbls water and press tested lines at 1000 and 5000 psi, rig pumped 10 bbls MudPush II, and chased w/5 bbls 11.4 mud at 5 bpm, rotating at 15 rpm- 7000K ft/lbs torque, up wt 182K, dwn wt 176K. Lined up on SLB unit and pumped 101 bbls (408 sx) 15.3 ppg EasyBlok cement w/lppb CemNet at 4.5 bpm-800 psi. Shut in DP, lined up to wash hose and flushed lines. Baker dropped wiper dart, lined up on DP and SLB displaced with 139 bbls 11.4 mud at 5 bpm-230 psi. Slowed rate to 3 bpm at 80 bbls away and had good, indication (psi spike) of dart latching wiper plug 97 bbls into displacement, 3 bpm-1341 psi. Cement turning corner 44 bbls into displacement.At this po nit rotation was stopped and liner set on depth. 120 bbls into displacement we lost all returns at surface,slowed pump rate to 2 bpm-1240 psi. Had no increase or spike in psi indicating packoff. SLB pumped 139 bbls and did not bump plug. SLB pumped .5 bbl and plug, bumped with FCP of 1400 psi at 2 bpm. Increased psi to 2000 and held f/5 minutes. Bled off 1 bbl at pump unit,floats holding. CIP at 23:21 PM -4-26-13.Total displacement pumped= 139.5 bbls, starting TPV=549 bbls, ending TPV= 635 bbls for a gain of 86 bbls. Expected pit gain was 106 bbls for entire job.,SLB pressured up on drill string to 3000 psi to set Flex-Lock hanger and held 5 minutes, slacked off 64K on hanger and increased to 4200 psi, held psi 1 minute, PU 6' on drill string to 158K, s/o to 30k,shear PKR,s/o to 80k, P/U to free travel 158k, rotate string @ 20 rpm &s/o to 80k and set ZXP packer @ 9339, 1/d cmt head, pressure up to 800 psi on drill string, pull out of hanger till pressure drops.,Circulate out cement, cement to surface @ 4950 stks,36 bbls cement to surface.,ipstall 4" pipe wiper ball and circulate 1.5 pipe volume., Stand back 3 stands, cut drilling line, p/u wt 151k,s/o 140k, Continue tripping out of hole standing back in derrick. At 7678' at 06:00 hrs. 4/28/2013-Sunday Cont POOH whiner running tool on 4" drill pipe,f/7740'to 4900'.,Close upper variable rams, MU topdrive, pump dwn 4"drill string and test liner lap at 1500 psi f/10 minutes on chart. Good test, bled off psi., Cont POOH w/liner running tool on 4"drill pipe,f/4900'. Make service breaks and LD Baker running tool. Dog sub sheared showing good weight transfer to liner top packer. No signs of damage. PU and break down Baker cement head. Clear rig floor of tools no longer needed. Cont shipping 11.4 mud to G&I tank farm and for disposal while tripping. Start cleaning pits for displacement., RU Weatherford tongs and handling equipment, including TIW and dart valves. Did not test BOP's w/2 7/8" as per Guy Schwartz (AOGCC). Held PJSM on PU RIH w/5" cleanout assembly., PU MI Swaco 5" multiback combo tool fitted w/4.25" bit and bit sub, PU 72 jnts 2 7/8" PAC pipe from pipeshed,to 2299'. SIMOPS: Peak removed SLB pump unit and silo's from location and staged 2 frac tanks on location. Liner was layed out and frac tanks spotted in place. Installed plumbing hardware on frac tanks.Spotted transfer pump and filter skid in containment.,At 2299' PU MI Swaco 7 5/8" multiback combo tool w/xo's, RD Weatherford 2 7/8" handling equipment and tongs, RU 4" handling equipment, cont RIH w/73 stands of 4" DP from derrick,to 9840'. break circulation, @ 65stks/min =800psi, 110 stks/min= 1720 psi,SIMOPS: Moved DD/MWD shack off location. RD Canrig shack., Continue tripping in hole t/11295, break circ @ 65stk/min =945, 110 stks/min = 1950, p/u 168k,s/o 145k, continue tripping in hole p/u singles from pipe house,continue tripping in hole F/1295 T/ 11577, Circulate 1.5 bottoms up,while Rotating and reciprocating pipe, @ 6bpm, 2600 psi, p/u 175k,s/o 150k, rtw 158k, rpm 10/15,trq 3.5K., Pressure test casing @ 3500 psi for 30 minutes on chart,test good., Displace 11.4ppg mud with fresh water,while rotating and reciprocating pipe, 1950 psi, 110 stks/min,4k trq, p/u 175k,s/o 150k. 4/29/2013- Monday Cont circ fresh water at 5 bpm-1950 psi, rotating 10 rpm-3.5K torque, 180K up, 155K dwn, 161K rot. Pumped a total of 500 bbls. With bit at 11,577' (landing collar)the bottom 7 5/8" multiback combo tool is 22' above liner top., POOH f/11,577' wiping both strings of casing to 6873',clean off magnet.,Trip back to bottom 74 stnds+single, had no tag up when bit/scraper entered liner top., Commence second 500 bbl fresh water displacement at 5 bpm-1565 psi, rotating 20 rpm-4300 ft/lbs torque, 180K up, 160K dwn., Held PJSM on chemical train, pumped the casing wash pill as follows:45 bbls Caustic followed with 5 bbls fresh water to clear mud lines,45 bbls of 5% Baraklean FL and 50 bbls of Hi-Vis Barazan. Displaced pill train w/500 bbls 6% KCL(filtered at 25 micron) at 5 bpm then slowed rate to 3 bpm rest of circulation. Had 112 NTU's at shut down from flowline. Drained hoses-blew down circ lines., Rig service,service top drive, draw-works, crown sheaves, blow down top drive and back to rig pumps., PJSM on LD 4" DP, POOH f/11,577' laying down 150 jnts 4" drill pipe, upper 7 5/8" Swaco combo tool, and 146 more jnts 4" drill pipe. LD lower 7 5/8" Swaco combo tool., CO 4" handling equipment to 2 7/8" handling equipment, RU Weatherford tongs and LD 72 jnts of 2 7/8" PAC pipe, 5" Swaco combo tool and 4.25" bit., Injected 1233 bbls drilling fluids, and 102 bbls water. 4/30/2013-Tuesday Cont POOH and lay down last 42 jnts of 2 7/8" PAC pipe, bit in good shape., Load pipeshed with 38 jnts 2 7/8" EUE kill string, tally same. Pull wear bushing. Set up Weatherford tongs for 8 rnd tubing., PU RIH w/38 jnts (1208') 2 7/8" EUE 8 rnd tubing for kill string. Cameron on location at 09:00 hrs with hanger and XO. PU 3 1/2" elevators and 3 1/2" landing jnt. SIMOPS: Load out Baker running tool and cement head, Weatherford 2 7/8" PAC pipe, and 4 damaged jnts of 4" HT-38 to town. Cont pit cleaning., Land hanger, rig dow weatherford tools., Remove flow line &drilling nipple, remove choke& kill lines, Npple down bop's., Install adapter flange and master valve,test void of tubing hanger @ 5000 psi,for 10 min,test master valve @ 5000 psi f/5min., continue cleaning boiler water tank, rig water tank and cellar. Rig Released @ 23:59 hrs 4-29-2013, Rig down top drive, remove bottom section of top drive torque tube., Injected 1002 bbls drilling fluid, and 100 bbls water. Cont strip over e-line with 4" DP f/10,047'to 11,245', averaging 10 stnds/hr in 6-3/4" open hole. Well flowing at 1 bbl/hr. Tagged up at 10,254' but worked string one time and slid through no problem. MU hangoff sub, MU topdrive and perform full circ at 293 gpm-1,877 psi, at bottoms up had max of 3,308 units,with a good amount of crude oil show. Cut pump rate back to 125 gpm-567 psi to keep mud from boiling over top of stack. Gas units dropped off quick and increased pump rate to 279 gpm-1,756 psi. Shut dwn pump at full circ 11.4 in and out. FCP 1,855 psi at 284 gpm. Remove topdrive and hang off sub, MU single and slack off to 11,308' and saw no fish. PU another single and slack off to 11,334' and saw no fish. LD single PU stnd and slack off to 11,341'. String taking weight but indication being on fish. MU topdrive and hangoff sub,circ f/15 min at 11,341',shut dwn pump, remove topdrive and hangoff sub,slack off string 4' and stacking out. MU 5' pup jnt and wash dwn to a depth of 11,345'. Pump psi increased significantly. Shut dwn pump and attempted to work drill string, pulling to 250K 3 times no movement. Pulled to 260K and string weight broke over dropped to 200K w/good pipe movement. Still could not pump. Removed topdrive and hangoff sub, latched onto wire and pulled to 7K tension, PU on drill string and lost wire weight,slacked off to 11,346' and wire weight increased to 9K. Pulled 60' up hole and MU "T" bar clamp at 11,309'. Cut cable and make splice. Cut cable and make splice. Log unit can read tools. Wait on operator to burn e-line cable in two at tool head. Pull enough slack in line to get to w/line unit,tie knot in cable&spool onto truck,test knot, remove w/line clamp, POOH w/wire line. Circulate bottoms up, max gas 796 units. Trip out of hole w/4" drill pipe and fishing assembly to 7-5/8" casing shoe. Swanson River Unit II ACTUAL Well SRU 24-15 PTD: 213-007 API: 50-133-20609-00 llih orp Alaska.LLC 16" J 1 4 L s" CASING DETAIL 4 Size Type Wt Grade Conn. ID Top Btm ' Conductor- 10-3/4" S * 16" Driven to Set 109 X-56 Weld 16" Surf 72' ,0 Depth r 2 p 0.s 10-3/4" Surf.Csg 45.5 L-80 Buttress 9.875" Surf 3,023' 29.7 L-80 BTC 6.75" Surf 7,145.61' 7-5/8" Intermediate p-110 29.7 HC BTC 6.75" 7,145.61' 9,563.75' 5" Prod Lnr 15 L-80 DWC/C 4.283" 9,396' 11,700' TUBING 2-7/8" Production 6.4 L-80 8rd EUE 2.441" Surf 10,806.65' 3 i t;; ? JEWELRY DETAIL ;. A. No. Depth ID OD Item 4 Ma' `i 1 18' 2.99" 11" Tubing Hanger tt.1,9 'T 2 3,947' 2.44" 4.750" 2-7/8"SFO-1 Mandrel 8RD i 5 ii <'" 3 7,150.53' 2.44" 4.750" 2-7/8"SFO-1 Mandrel 8RD 1 4 9201.65' 2.44" 4.750" 2-7/8"SFO-1 Mandrel 8RD-orifice 6 y 1 I_., I F 5 9248.62' 2.44" 4.750" Chemical Injection Mandrel 7 : * .LL .4 6 9291.73' 2.313" 6.5" X Landing Nipple .° 7 9,298.09' 2.44" 6.75" 7 5/8 FH Hydraulic Packer 24-29.7# 8 10,773.53 2.44" 3.5" X Landing Nipple 7-5/8"2M ,, 9 10,806.65 2.44" 3.5" WL Entry Guide 8 PERFORATIONS 9 Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) SPF Length Date Tyonek G2 10,923' 10,972' 10,745' 10,786' 6 49' May 2013 Hemlock H1 10,985' 11,000' 10,805' 10,819' 6 15' May 2013 H2 11,012' 11,018' 10,831' 10,836' 6 6' May 2013 H3 11,040' 11,050' 10,857' 10,866' 6 10' May 2013 H4 11,054' 11,062' 10,870' 10,878' 6 8' May 2013 H5 11,085' 11,095' 10,899' 10,909' 6 10' May 2013 H6/7 11,120' 11,151' 10,933' 10,962' 6 31' May 2013 H10 11,315' 11,348' 11,117, 11,148' 6 33' May 2013 5" L PBTD=11,577'/PBTVD=11,367' TD=11,710'/TVD=11,494' Updated by JSB 06/26/2013 SRU 24-15 Days Vs Depth 0 2000 SRU 24-15 Actual 4000 6000 t a v 8000 v cc ca ***\10000 12000 14000 16000 ,–— 0 5 10 15 20 25 30 35 40 45 50 Days SRU 24-15 MW Vs Depth 0 500 1000 1500 2000 2500 3000 3500 \ , 4000 4500 5000 MW vs Depth 5500 L 4+ ai 6000 o a °1 6500 7 N ca a 7000 -- 7500 8000 8500 9000 9500 C._ , 10000 10500 11000 11500 12000 12500 8 9 10 11 12 13 14 Mud Density(ppg) 11111111 1111111111111111111111111111111111 DIESEEMEMMESEE i i-,1 11111 III 3 111111111 -z ullEEEMEMEMEMEM i i 1111111V HISMEMEMEMEEESE it 2 1 1 AMEMEMESEEME a. 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W W W W 2 m fV 2V C/lV lV 2V 2V M� � ���� 2pp• 2OS OC Spp 2pp pp pp ppp pp pp pp pp”Spp tO pp 2$ Sp O p p p p p p p-pp pp 8p p p p p p p g p p p p p p p p p p p p p p p 8 pp M pp pp pp 0 pG 0 pp 0 56 pp pp pp pp p p”p p o � 06 O gN-NGYO 888 � ' 6♦ D0 mhAA2N �n a Omm 0 V 88 NmmO n,2 02000Om W W W W W 020W W 002 m W W 00 S00000000 M I ST«kkkk mmmm§mm �m!«m@q ©mRRRR1:i r�m@mam ■,,3322 [2§523! q*#((@q ( §§■2■!■ 28, 'S 9999.,ei 88ge88a „9.926 )|(�(§| §§[5§!| FFr ■»r ZigSSS9 ;P;R@Ag ■SB■S@G §§§§W2 ((1)0(0(0 witeivitritowitri *M WT BBBSSS■ `~n@V:p §7GG-B2 2[§§(§§ niSEn§8n 2K2k22B gw9v4mq K■m2@M. mV#g4mR m¥+@##$ ;@r■7«; §§2 !22 ; \« @q !222!2! @ m9m@; m2§§@§■ §EE|![5 8888#a; K!§§■§F II CASING RUN IN TALLY WELL NAME: SRU 24-15 DATE: 03/19/13 CASING SIZE 10.750 WEIGHT 45.50 CASING ID 9.950 GRADE L-80 THREAI BTC CAPACITY 0.0962 bbls/ft TORQUE - MAXIMUM= MIN= 10,750 DISPLACEMENT 0.0166 bbls/ft SHOE DEPTH 3023.5 feet • Coupling OD= 11.750 HOLE TD 3030.0 feet Pin ID=9.95 MUD WT 10.10 ppg Joint Running Joint Depth BOUY FACTOR 0.85 Joint# Joint# Length Total Bottom Top REMARKS Bouyant Capacity Displmt on Rack in hole feet feet feet feet weight bbls bbls Off Bottom => 6.50 Block Weight = 25,000 Weatherford Bullnose 1.90 1.90 3023.48 3021.58 Float Shoe 11.85 OD 25,073 0.2 0.0 BakerLocked Joint Centrilizer#1 w/stop ring 84 40.98 42.88 3021.58 2980.60 10'above shoe 26,653 4.1 0.7 BakerLocked Joint Centrilizer#2 w/stop ring 83 39.88 82.76 2980.60 2940.72 10'below coupler 28,189 8.0 1.4 r 'eatherford Float Collar 11.77 OD PN 1.45 84.21 2940.72 2939.27 1034230 28,245 8.1 1.4 82 3 40.93 125.14 2939.27 2898.34 iiaker Locked Joint 29,823 12.0 2.1 81 4 40.79 165.93 2898.34 2857.55 Centralizer#3 31,395 16.0 2.7 80 5 40.78 206.71 2857.55 2816.77 32,966 19.9 3.4 79 6 41.15 247.86 2816.77 2775.62 Centralizer#4 34,552 23.8 4.1 78 7 39.75 287.61 2775.62 2735.87 36,084 27.7 4.8 77 8 41.48 329.09 2735.87 2694.39 Centralizer#5 37,683 31.6 5.4 76 9 41.90 370.99 2694.39 2652.49 39,297 35.7 6.1 75 10 39.33 410.32 2652.49 2613.16 Centralizer#6 40,813 39.5 6.8 74 11 41.60 451.92 2613.16 2571.56 42,416 43.5 7.5 73 12 41.96 493.88 2571.56 2529.60 Centralizer#7 44,033 47.5 8.2 72 13 41.72 535.60 2529.60 2487.88 45,641 51.5 8.9 71 14 41.66 577.26 2487.88 2446.22 Centralizer#8 47,247 55.5 9.6 70 15 41.22 618.48 2446.22 2405.00 48,835 59.5 10.2 69 16 41.71 660.19 2405.00 2363.29 Centralizer#9 50,443 63.5 10.9 68 17 41.47 701.66 2363.29 2321.82 52,041 67.5 .11.6 67 18 39.26 740.92 2321.82 2282.56 Centralizer#10 53,554 71.3 12.3 66 19 42.02 782.94 2282.56 2240.54 55,173 75.3 13.0 65 20 41.33 824.27 2240.54 2199.21 Centralizer#11 56,766 79.3 13.6 64 21 41.76 866.03 2199.21 2157.45 58,375 83.3 14.3 63 22 41.75 907.78 2157.45 2115.70 Centralizer#12 59,984 87.3 15.0 62 23 42.01 949.79 2115.70 2073.69 61,603 91.3 15.7 61 24 41.69 991.48 2073.69 2032.00 Centralizer#13 63,210 95.4 16.4 60 25 40.43 1031.91 2032.00 1991.57 64,768 99.2 17.1 59 26 41.46 1073.37 1991.57 1950.11 Centralizer#14 66,366 103.2 17.8 58 27 39.25 1112.62 1950.11 1910.86 67,879 107.0 18.4 57 28 41.60 1154.22 1910.86 1869.26 Centralizer#15 69,482 111.0 19.1 56 29 40.46 1194.68 1869.26 1828.80 71,041 114.9 19.8 55 30 41.30 1235.98 1828.80 1787.50 Centralizer#16 72,633 118.9 20.5 54 31 41.64 1277.62 1787.50 1745.86 74,238 122.9 21.1 53 32 40.09 1317.71 1745.86 1705.77 Centralizer#17 75,783 126.7 21.8 52 33 40.82 1358.53 1705.77 1664.95 77,356 130.6 22.5 5 I 34 41.79 1400.32 1664.95 1623.16 Centralizer#18 78,966 134.7 23.2 50 35 38.72 1439.04 1623.16 1584.44 80,458 138.4 23.8 49 36 41.50_ 1480.54 1584.44 1542.94 Centralizer#19 82,058 142.4 24.5 48 37 41.70 1522.24 1542.94 1501.24 83,665 146.4 25.2 47 38 41.83 1564.07 1501.24 1459.41 Centralizer#20 85,277 150.4 25.9 46 39 41.01 1605.08 1459.41 1418.40 86,857 154.4 26.6 45 40 40.24 1645.32 1418.40 1378.16 Centralizer#21 88,408 158.2 27.2 44 41 41.71 1687.03 1378.16 1336.45 90,016 162.2 27.9 43 42 41.82 1728.85 1336.45 1294.63 Centralizer#22 91,627 166.3 28.6 42 43 41.34 1770.19 1294.63 1253.29 93,220 170.2 29.3 Joint Ru Joint Depth BO' 7ACTOR 0.85 Joint# Joint# Length Tu.__ Bottom Top REMARKS Bouyant Capacity Displmt on Rack in hole feet feet feet feet weight bbls bbls 41 44 41 .45 1811.64 1253.29 1211.84 Centralizer#23 94,818 174.2 30.0 40 45 41 .54 1853.18 1211.84 1170.30 96,419 178.2 30.7 39 46 40.73 1893.91 1170.30 1129.57 Centralizer#24 97,988 182.1 31.3 38 47 41 .46 1935.37 1129.57 1088.11 99,586 186.1 32.0 37 48 39.81 1975.18 1088.11 1048.30 Centralizer#25 101,120 190.0 32.7 36 49 39.82 2015.00 1048.30 1008.48 102,655 193.8 33.3 35 50 39.30 2054.30 1008.48 969.18 Centralizer#26 104,170 197.6 34.0 34 51 40.05 2094.35 969.18 929.13 105,713 201.4 34.7 33 52 38.12 2132.47 929.13 891.01 Centralizer#27 107,182 205.1 35.3 32 53 41.04 2173.51 891.01 849.97 108,764 209.0 36.0 31 54 41.73 2215.24 849.97 808.24 Centralizer#28 110,372 213.0 36.7 30 55 41.84 2257.08 808.24 766.40 111,984 217.1 37.4 29 56 41.52 2298.60 766.40 724.88 Centralizer#29 113,585 221.1 38.0 28 57 41.81 2340.41 724.88 683.07 115,196 225.1 38.7 27 58 37.90 2378.31 683.07 645.17 Centralizer#30 116,656 228.7 39.4 26 59 38.92 2417.23 645.17 606.25 118,156 232.5 40.0 25 60 41 .90 2459.13 606.25 564.35 Centralizer#31 119,771 236.5 40.7 24 61 42.08 2501.21 564.35 522.27 121,393 240.5 41.4 23 62 41 .48 2542.69 522.27 480.79 Centralizer#32 122,991 244.5 42.1 22 63 41 .45 2584.14 480.79 439.34 124,589 248.5 42.8 21 64 41 .44 2625.58 439.34 397.90 Centralizer#33 126,186 252.5 43.5 20 65 40.03 2665.61 397.90 357.87 127,729 256.4 44.1 19 66 41 .68 2707.29 357.87 316.19 Centralizer#31 129,335 260.4 44.8 18 67 41.49 2748.78 316.19 274.70 130,934 264.4 45.5 17 68 41.92 2790.70 274.70 232.78 132,549 268.4 46.2 16 69 40.95 2831.65 232.78 191.83 134,128 272.3 46.9 15 70 39.60 2871.25 191.83 152.23 135,654 276.1 47.5 14 71 41.89 2913.14 152.23 110.34 137,268 280.2 48.2 13 72 39.95 2953.09 110.34 70.39 138,808 284.0 48.9 12 73 41 .24 2994.33 70.39 29.15 140,397 288.0 49.6 Pup 5.11 2999.44 29.15 24.04 140,594 288.5 49.6 Hanger 0.84 3000.28 24.04 23.20 140,626 288.5 49.7 RKB 23.20 3023.48 23.20 0.00 141,520 290.8 50.0 Extra Joints 11 74 41 .12 10 75 41.86 9 76 40.69 8 77 40.66 7 78 41 .12 6 79 41 .02 5 80 41 .34 4 81 41 .16 3 82 38.98 2 83 41 .67 1 84 41 .44 \D k,,e.A— Hilcorp Energy Company (/`.r - o - CASING &CEMENTING REPORT S c S Lease&Well No. SRU 24-15 Date 27-Mar-13 County Kenai Peninsula Burough State Alaska Supv. Rance Pederson/Jimmy Greco CASING RECORD TD 3030.00 Shoe Depth: 3023.5'MD/3012.66'TVD PBTD: MD/'TVD Casing(Or Liner)Detail Setting Depths No.of Jts. Size Wt. Grade THD Make Length Bottom Top Shoe 10 3/4 STL Wfd 1.90 3,023.48 3,021.58 2 10 3/4 45.5 L-80 BTC 80.86 2,980.60 2,940.72 F.Collar 10 3/4 STL Wfd 1.45 2,940.72 2,939.27 71 jts 10 3/4 45.5 L-80 BTC 2,915.23 2,939.27 24.04 Hanger 10 3/4 L-80 BTC 0.84 24.04 23.20 RKB 23.20 23.20 0.00 • Totals Csg Wt.On Hook: 155,000 Type Float Collar: Float No.Hrs to Run: 12 hrs Csg Wt.On Slips: 120,000 Type of Shoe: DJ/Float Casing Crew: Wfd Fluid Description: 10.0 ppg WBM / Spud Mud/ PV=20 YP=17 HTHP= Liner hanger Info(Make/Model): Liner top Packer?: Yes x No Liner hanger test pressure: Centralizer Placement: Bow spring centralizers on each joint in shoe track,every other joint to 300'f/surface CEMENTING REPORT Preflush(Spacer) Type: Mud Push II Density(ppg) 11.0 ppg Volume pumped(BBLs) 40 bbls Lead Slurry Type: Class A extended Yield: 2.44 Density(ppg) 12.0 ppg Volume pumped(BBLs/sx) 216bbls/497sx Mixing/Pumping Rate(bpm): 5.5 bpm Tail Slurry Type: Class A Conventional Yield: 2.44 1 Density(ppg) 15.4 ppg Volume pumped(BBLs/sx) 53bbls/122sx Mixing/Pumping Rate(bpm): 4 bpm I- Post Flush(Spacer) Type: Density(ppg) Rate(bpm): Volume: ce il Displacement: Type: Spud Mud Density(ppg) 10.0 ppg Rate(bpm): 6.0 bpm Volume(actual/calculated): 277.5 bbls/275 bbls FCP(psi): 1146 Pump used for disp: Rig pump Plug Bumped? Yes X No Bump press 0 Casing Rotated? Yes X No Reciprocated? X Yes No %Returns during job 100 Cement returns to surface? X Yes No Spacer returns? X Yes No Vol to Surf: 40bblsspacer/70 bbls cmt s.'" Cement In Place At: 10:50 Date: 3/19/2013 Estimated TOC: surface Method Used To Determine TOC: 12.0 ppg returns @ surface weighed with PSI scales Preflush(Spacer) Type: Density(ppg) Volume pumped(BBLs) Lead Slurry Type: Density(ppg) Volume pumped(BBLs) Mixing/Pumping Rate(bpm): Tail Slurry w Type: a Density(ppg) Volume pumped(BBLs) Mixing/Pumping Rate(bpm): u) Post Flush(Spacer) 0 o Type: Density(ppg) Rate(bpm): Volume: wDisplacement: Type: Density(ppg) Rate(bpm): Volume(actual/calculated): FCP(psi): Pump used for disp: Plug Bumped? Yes No Bump press Casing Rotated? Yes No Reciprocated? _Yes No %Returns during job Cement returns to surface? Yes No Spacer returns? Yes No Vol to Surf: Cement In Place At: Date: Estimated TOC: Method Used To Determine TOC: WELLHEAD Make Cameron Type Casing head assembly Serial No.406561 Size 16 3/4 x 11 W.P.3000/5000 Test Head To 3000 PSIG 10 MIN X OK Remarks: CASING RUN IN TALLY WELL NAME: SRU 24-15 DATE: 04/10/13 CASING SIZE 7.625 inches WEIGHT 29.70 ppf CASING ID 6.875 inches GRADE L - 80 P-110 THREAD BTC CAPACITY 0.0459 bbls/ft TORQUE - OPTIMUM = 7800 MIN = DISPLACEMENT 0.0108 bbls/ft SHOE DEPTH 9561.75 feet HOLE TD 9576.00 feet Foremen: Leslie/Greco I MUD WT 12.00 ppg Joint Running Joint Depth BOUY FACTOR 0.80 Joint# Joint# Length Total Bottom Top REMARKS: / Bouyant Capacity Displmt on rack in hole feet feet feet feet Run 45 centralizers weight bbls bbls Off Bottom=> 10.00 Block Weight => 25,000 • Weatherford,#303, A Shoe 1.63 1.63 9561.75 9560.12 8.52 OD,6.8641D 25,039 0.1 0.0 4 1 40.80 42.43 9560.12 9519.32 P-110 BTC(centra 2) 26,008 1.9 0.5 5 2 41.46 83.89 9519.32 9477.86 P-110 BTC(centra 3) 26,993 3.9 0.9 Weatherford,#482, B Flt Clr 1.28 85.17 9477.86 9476.58 8.52 OD,6.864 ID 27,024 3.9 0.9 6 3 40.60 125.77 9476.58 9435.98 P-110 BTC(centra 4) 27,988 5.8 1.4 7 4 39.88 165.65 9435.98 9396.10 P-110 BTC 28,936 ! 7.6 1.8 8 5 40.12 205.77 9396.10 9355.98 P-110 BTC(centra 5) _ 29,889 9.4 2.2 9 6 41 .25 247.02 9355.98 9314.73 P-110 BTC 30,869 11.3 2.7 10 7 38.71 285.73 9314.73 9276.02 P-110 BTC(centra 6) 31,789 13.1 3.1 11 8 39.86 325.59 9276.02 9236.16 P-110 BTC 32,736 15.0 3.5 12 9 41 .56 367.15 9236.16 9194.60 P-110 BTC(centra 7) 33,723 16.9 4.0 13 10 38.58 405.73 9194.60 9156.02 P-110 BTC 34,640 18.6 4.4 14 11 40.28 446.01 9156.02 9115.74 P-110 BTC(centra 8) 35,597 20.5 4.8 15 12 41 .26 487.27 9115.74 9074.48 P-110 BTC 36,578 22.4 5.3 16 13 41 .35 528.62 9074.48 9033.13 P-110 BTC(centra 9) 37,560 24.3 5.7 17 14 41 .07 569.69 9033.13 8992.06 P-110 BTC 38,536 ; 26.2 6.2 18 15 39.75 609.44 8992.06 8952.31 P-110 BTC(centra 10) 39,480 28.0 6.6 19 16 41 .05 650.49 8952.31 8911.26 P-110 BTC 40,456 29.9 7.0 20 17 39.67 690.16 8911.26 8871.59 P-110 BTC(centra 11) 41,398 31.7 7.5 21 18 40.62 730.78 8871.59 8830.97 P-I10 BTC 42,363 33.6 7.9 22 19 41 .96 772.74 8830.97 8789.01 P-110 BTC(centra 12) 43,360 35.5 8.4 23 20 41 .80 814.54 8789.01 8747.21 P-110 BTC 44,353 37.4 8.8 24 21 42.11 856.65 8747.21 8705.10 P-110 BTC(centra 13) 45,354 39.3 9.3 25 22 41 .12 897.77 8705.10 8663.98 P-110 BTC 46,331 41.2 9.7 26 23 39.93 937.70 8663.98 8624.05 P-110 BTC(centra 14) 47,280 43.1 10.1 27 24 40.63 978.33 8624.05 8583.42 P-110 BTC 48,245 44.9 10.6 28 25 38.05 1016.38 8583.42 8545.37 P-110 BTC(centra 15) 49,149 46.7 11.0 29 26 38.52 1054.90 8545.37 8506.85 P-110 BTC 50,064 48.4 11.4 30 27 38.26 1093.16 8506.85 8468.59 P-110 BTC(centra 16)_ 50,973 50.2 11.8 31 28 40.87 1134.03 8468.59 8427.72 P-110 BTC 51,945 52.1 12.3 32 29 39.43 1173.46 8427.72 8388.29 P-110 BTC(centra 17) 52,881 53.9 12.7 33 30 41 .22 1214.68 8388.29 8347.07 P-110 BTC 53,861 55.8 13.1 34 31 40.65 1255.33 8347.07 8306.42 P-110 BTC(centra 18) 54,827 57.6 13.6 35 32 41 .72 1297.05 8306.42 8264.70 P-110 BTC 55,818 59.6 14.0 36 33 40.28 1337.33 8264.70 8224.42 P-110 BTC(centra 19) \ 56,775 61.4 14.5 Joint Running Joint Depth BOUY FACTOR 0.80 I Joint# Joint# Length Total Bottom Top REMARKS: . Bouyant Capacity Displmt on rack in hole feet feet feet feet Run 45 centralizers weight bbls bbls 37 34 40.42 1377.75 8224.42 8184.00 P-110 BTC 57,735 63.3 14.9 38 35 40.80 1418.55 _ 8184.00 8143.20 P-110 BTC(centra 20) 58,705 65.1 15.3 39 36 41 .49 1460.04 8143.20 8101.71 P-110 BTC 59,691 67.0 15.8 40 37 38.31 1498.35 8101.71 8063.40 P-110 BTC(centra 21) 60,601 68.8 16.2 41 38 40.79 1539.14 _ 8063.40 8022.61 P-110 BTC 61,570 70.7 16.6 42 39 41 .91 1581.05 _ 8022.61 7980.70 P-110 BTC(centra 22) 62,566 72.6 17.1 43 40 40.41 1621.46 7980.70 7940.29 P-110 BTC 63,526 74.5 17.5 44 41 38.84 1660.30 _ 7940.29 7901.45 P-110 BTC(centra 23) 64,449 76.2 17.9 45 42 39.52 1699.82 _ 7901.45 7861.93 P-110 BTC 65,388 78.1 18.4 46 43 39.66 1739.48 7861.93 7822.27 P-110 BTC(centra 24) 66,330 79.9 18.8 47 44 39.20 1778.68 7822.27 7783.07 P-110 BTC 67,261 81.7 19.2 48 45 40.14 1818.82 7783.07 7742.93 P-110 BTC(centra 25) 68,215 83.5 19.7 49 46 41 .34 1860.16 7742.93 7701.59 P-110 BTC 69,197 85.4 .20A 50 _ 47 40.62 1900.78 7701.59 7660.97 P-110 BTC(centra 26) 70,163 87.3 20.5 51 48 38.14 1938.92 7660.97 7622.83 P-110 BTC 71,069 89.0 21.0 52 49 41 .94 1980.86 7622.83 7580.89 P-110 BTC(centra 27) 72,065 91.0 21.4 53 50 40.56 2021.42 _ 7580.89 7540.33 P-110 BTC 73,029 92.8 21.9 54 51 38.18 2059.60 7540.33 7502.15 P-110 BTC(centra 28) 73,936 94.6 22.3 55 52 39.89 2099.49 7502.15 7462.26 P-110 BTC 74,884 96.4 22.7 56 53 39.00 2138.49 7462.26 7423.26 P-110 BTC(centra 29) 75,811 98.2 23.1 57 54 37.46 2175.95 7423.26 7385.80 P-110 BTC 76,701 99.9 23.5 58 55 41 .51 2217.46 7385.80 7344.29 P-110 BTC(centra 30) 77,687 101.8 24.0 59 56 40.10 2257.56 7344.29 7304.19 P-110 BTC 78,640 103.7 24.4 60 57 41 .52 2299.08 7304.19 7262.67 P-110 BTC(centra 31) 79,626 105.6 24.9 61 58 39.38 2338.46 7262.67 7223.29 P-110 BTC 80,562 107.4 25.3 62 59 39.57 2378.03 7223.29 7183.72 P-110 BTC(centra 32) 81,502 109.2 25.7 63 60 40.11 2418.14 7183.72 7143.61 P-110 BTC 82,455 111.0 26.1 PUP 10.09 2428.23 7143.61 7133.52 L-80 BTC 96 61 41 .55 2469.78 7133.52 7091.97 L-80 BTC 83,442 112.9 26.6 97 62 41 .78 2511.56 7091.97 7050.19 L-80 BTC(centra 33) 84,435 114.9 27.0 98 63 41 .73 2553.29 7050.19 7008.46 L-80 BTC 85,426 116.8 27.5 99 64 41 .14 2594.43 _ 7008.46 6967.32 L-80 BTC 86,404 118.7 27.9 100 65 41 .34 2635.77 _ 6967.32 6925.98 L-80 BTC(centra 34) 87,386 120.6 28.4 101 66 41 .31 2677.08 6925.98 6884.67 L-80 BTC 88,368 122.5 28.8 102 67 41 .04 2718.12 6884.67 6843.63 L-80 BTC 89,343 124.4 29.3 103 68 41 .23 2759.35 6843.63 6802.40 L-80 BTC(centra 35) 90,322 126.2 29.7 104 69 40.97 2800.32 6802.40 6761.43 L-80 BTC 91,296 128.1 30.2 105 70 40.72 2841.04 6761.43 6720.71 L-80 BTC 92,263 130.0 30.6 106 71 40.77 2881.81 6720.71 6679.94 L-80 BTC(centra 36) 93,232 131.9 31.0 107 72 42.04 2923.85 _ 6679.94 6637.90 L-80 BTC 94,231 133.8 31.5 108 73 39.43 2963.28 6637.90 6598.47 L-80 BTC 95,168 135.6 31.9 109 74 41 .09 3004.37 6598.47 6557.38 L-80 BTC(centra 37) 96,144 137.5 32.4 110 75 39.99 3044.36 6557.38 6517.39 L-80 BTC 97,094 139.3 32.8 111 76 40.24 3084.60 6517.39 6477.15 L-80 BTC 98,050 141.2 33.2 112 77 41 .98 3126.58 6477.15 6435.17 L-80 BTC(centra 38) 99,048 143.1 33.7 113 78 39.22 3165.80 6435.17 6395.95 L-80 BTC 99,980 144.9 34.1 114 79 41 .74 3207.54 6395.95 6354.21 L-80 BTC 100,971 146.8 34.6 115 80 40.77 3248.31 6354.21 6313.44 L-80 BTC(centra 39) 101,940 148.7 35.0 116 81 41 .93 3290.24 6313.44 6271.51 L-80 BTC 102,936 150.6 35.5 Joint Running Joint Depth BOUY FACTOR 0.80 I Joint# Joint# Length Total Bottom Top REMARKS: Bouyant Capacity Displmt on rack in hole feet feet feet feet Run 45 centralizers weight bbls bbls 117 82 40.98 3331.22 6271.51 6230.53 L-80 BTC 103,910 152.5 35.9 118 83 41 .09 3372.31 6230.53 6189.44 L-80 BTC(centra 40 104,886 154.4 36.3 119 84 40.28 3412.59 6189.44 6149.16 L-80 BTC 105,843 156.2 36.8 120 85 41 .28 3453.87 6149.16 6107.88 L-80 BTC 106,824 158.1 37.2 121 86 42.05 3495.92 6107.88 6065.83 L-80 BTC(centra 41) 107,823 160.1 37.7 122 87 39.45 3535.37 6065.83 6026.38 L-80 BTC 108,761 161.9 38.1 123 88 42.07 3577.44 6026.38 5984.31 L-80 BTC 109,760 163.8 38.6 124 89 41 .39 3618.83 5984.31 5942.92 L-80 BTC(centra 42) 110,744 165.7 39.0 125 90 41 .60 3660.43 5942.92 5901.32 L-80 BTC 111,732 167.6 39.5 126 91 40.52 3700.95 5901.32 5860.80 L-80 BTC 112,695 169.5 39.9 127 92 41 .32 3742.27 5860.80 5819.48 L-80 BTC(centra 43) 113,677 171.4 40.3 128 93 41 .97 3784.24 5819.48 5777.51 L-80 BTC 114,674 173.3 40.8 129 94 41 .81 3826.05 5777.51 5735.70 L-80 BTC 115,667 175.2 41.3 130 95 41 .58 3867.63 5735.70 5694.12 L-80 BTC(centra 44) 116,655 177.1 41.7 131 96 41 .80 3909.43 5694.12 5652.32 L-80 BTC 117,648 179.1 42.2 132 97 40.23 3949.66 5652.32 5612.09 L-80 BTC 118,604 180.9 42.6 133 98 41 .40 3991.06 5612.09 5570.69 L-80 BTC 119,588 182.8 43.0 134 99 41 .36 4032.42 5570.69 5529.33 L-80 BTC(centra 45) 120,571 184.7 43.5 135 100 41 .17 4073.59 5529.33 5488.16 L-80 BTC 121,549 186.6 43.9 136 101 39.69 4113.28 5488.16 5448.47 L-80 BTC 122,492 188.4 44.4 137 102 41 .20 4154.48 5448.47 5407.27 L-80 BTC 123,471 190.3 44.8 138 103 41 .19 4195.67 5407.27 5366.08 L-80 BTC 124,449 192.2 45.2 139 104 41 .86 4237.53 5366.08 5324.22 L-80 BTC 125,444 194.1 45.7 140 105 40.80 4278.33 5324.22 5283.42 L-80 BTC 126,413 196.0 46.1 141 106 41 .82 4320.15 5283.42 5241.60 L-80 BTC 127,407 197.9 46.6 142 107 41 .63 4361.78 5241.60 5199.97 L-80 BTC 128,396 199.8 47.0 143 108 41 .41 4403.19 5199.97 ' 5158.56 L-80 BTC 129,380 201.7 47.5 144 109 40.85 4444.04 5158.56 5117.71 L-80 BTC 130,351 203.6 47.9 145 110 40.90 4484.94 5117.71 5076.81 L-80 BTC 131,322 205.5 48.4 146 111 41 .92 4526.86 5076.81 5034.89 L-80 BTC 132,318 207.4 48.8 147 112 42.06 4568.92 5034.89 4992.83 L-80 BTC 133,318 209.3 49.3 148 113 41 .98 4610.90 4992.83 4950.85 L-80 BTC 134,315 211.3 49.7 149 114 41 .17 4652.07 4950.85 4909.68 L-80 BTC 135,293 213.2 50.2 150 115 41 .60 4693.67 4909.68 4868.08 L-80 BTC 136,282 215.1 50.6 151 116 40.76 4734.43 4868.08 4827.32 L-80 BTC 137,250 216.9 51.1 152 117 42.06 4776.49 4827.32 4785.26 L-80 BTC 138,250 218.9 51.5 153 118 41 .96 4818.45 4785.26 4743.30 L-80 BTC 139,247 220.8 52.0 154 119 41 .90 4860.35 4743.30 4701.40 L-80 BTC 140,242 222.7 52.4 155 120 41 .91 4902.26 4701.40 4659.49 L-80 BTC 141,238 224.6 52.9 156 121 41 .73 4943.99 4659.49 4617.76 L-80 BTC 142,229 226.6 53.3 157 122 39.96 4983.95 4617.76 4577.80 L-80 BTC 143,179 228.4 53.8 158 123 41 .58 5025.53 4577.80 4536.22 L-80 BTC 144,167 230.3 54.2 159 124 41 .90 5067.43 4536.22 4494.32 L-80 BTC 145,162 232.2 54.7 160 125 41 .97 5109.40 4494.32 4452.35 L-80 BTC 146,160 234.2 55.1 161 126 41 .00 5150.40 4452.35 4411.35 L-80 BTC 147,134 236.0 55.6 162 127 41 .86 5192.26 4411.35 4369.49 L-80 BTC 148,128 238.0 56.0 163 128 41 .90 5234.16 4369.49 4327.59 L-80 BTC 149,124 239.9 56.5 164 129 37.51 5271.67 4327.59 4290.08 L-80 BTC 150,015 241.6 56.9 165 130 41 .05 5312.72 4290.08 4249.03 L-80 BTC 150,990 243.5 57.3 Joint Running Joint Depth BOUY FACTOR 0.80 I Joint# Joint# Length Total Bottom Top REMARKS: Bouyant Capacity Displmt on rack in hole feet feet feet feet Run 45 centralizers weight bbls bbls 166 131 40.96 5353.68 4249.03 4208.07 L-80 BTC 151,964 245.4 57.8 167 132 41 .11 5394.79 4208.07 4166.96 L-80 BTC 152,940 247.3 58.2 168 133 42.06 5436.85 4166.96 4124.90 L-80 BTC 153,940 249.2 58.7 169 134 40.96 5477.81 4124.90 4083.94 L-80 BTC 154,913 251.1 59.1 170 135 41 .95 5519.76 4083.94 4041.99 L-80 BTC _ 155,910 253.0 59.6 171 136 41 .24 5561.00 4041.99 4000.75 L-80 BTC 156,890 254.9 60.0 172 137 41 .68 5602.68 4000.75 3959.07 L-80 BTC 157,880 256.8 60.5 173 138 41 .79 5644.47 3959.07 3917.28 L-80 BTC 158,873 258.7 60.9 174 139 41 .09 5685.56 3917.28 3876.19 L-80 BTC 159,849 260.6 61.4 175 140 42.08 5727.64 3876.19 3834.11 L-80 BTC 160,849 262.5 61.8 176 141 42.11 5769.75 3834.11 3792.00 L-80 BTC 161,850 264.5 62.3 177 142 40.97 5810.72 3792.00 3751.03 L-80 BTC 162,823 266.4 62.7 178 143 41 .41 5852.13 3751.03 3709.62 L-80 BTC 163,807 268.3 63.2 179 144 42.03 5894.16 3709.62 3667.59 L-80 BTC 164,806 270.2 63.6 180 145 41 .47 5935.63 3667.59 3626.12 L-80 BTC 165,791 272.1 64.1 181 146 39.43 5975.06 3626.12 3586.69 L-80 BTC 166,728 273.9 64.5 182 147 41 .94 6017.00 3586.69 3544.75 L-80 BTC 167,724 275.8 64.9 183 148 41 .38 6058.38 3544.75 3503.37 L-80 BTC 168,707 277.7 65.4 184 149 41 .59 6099.97 3503.37 3461.78 L-80 BTC 169,696 279.6 65.8 185 150 39.67 6139.64 3461.78 3422.11 L-80 BTC 170,638 281.5 66.3 186 151 41 .98 6181.62 3422.11 3380.13 L-80 BTC 171,636 283.4 66.7 187 152 41 .97 6223.59 3380.13 3338.16 L-80 BTC 172,633 285.3 67.2 188 153 41 .07 6264.66 3338.16 3297.09 L-80 BTC 173,609 287.2 67.6 189 154 40.80 6305.46 3297.09 3256.29 L-80 BTC 174,578 289.1 68.1 190 155 41 .94 6347.40 3256.29 3214.35 L-80 BTC 175,574 291.0 68.5 191 156 41 .05 6388.45 3214.35 3173.30 L-80 BTC 176,550 292.9 69.0 192 157 41 .77 6430.22 3173.30 3131.53 L-80 BTC 177,542 294.8 69.4 193 158 39.64 6469.86 3131.53 3091.89 L-80 BTC 178,484 296.6 69.8 194 159 41 .59 6511.45 3091.89 3050.30 L-80 BTC 179,472 298.5 70.3 195 160 41 .89 6553.34 3050.30 3008.41 L-80 BTC 180,468 300.5 70.7 196 161 41 .98 6595.32 3008.41 2966.43 L-80 BTC 181,465 302.4 71.2 197 162 41 .96 6637.28 2966.43 2924.47 L-80 BTC 182,462 304.3 71.6 198 163 41 .38 6678.66 2924.47 2883.09 L-80 BTC 183,445 306.2 72.1 199 164 41 .05 6719.71 2883.09 2842.04 L-80 BTC 184,421 308.1 72.5 200 165 38.11 6757.82 2842.04 2803.93 L-80 BTC 185,326 309.9 72.9 201 166 40.01 6797.83 2803.93 2763.92 L-80 BTC 186,277 311.7 73.4 202 167 41 .42 6839.25 2763.92 2722.50 L-80 BTC 187,261 313.6 73.8 203 168 41 .52 6880.77 2722.50 2680.98 L-80 BTC 188,247 315.5 74.3 204 169 41 .95 6922.72 2680.98 2639.03 L-80 BTC 189,244 317.4 74.7 205 170 41 .86 6964.58 2639.03 2597.17 L-80 BTC 190,239 319.4 75.2 206 171 41 .93 7006.51 2597.17 2555.24 L-80 BTC 191,235 321.3 75.6 207 172 41 .40 7047.91 2555.24 2513.84 L-80 BTC 192,219 323.2 76.1 208 173 40.67 7088.58 2513.84 2473.17 L-80 BTC 193,185 325.0 76.5 209 174 41 .10 7129.68 2473.17 2432.07 L-80 BTC 194,161 326.9 77.0 210 175 41 .31 7170.99 2432.07 2390.76 L-80 BTC 195,143 328.8 77.4 211 176 41 .93 7212.92 2390.76 2348.83 L-80 BTC 196,139 330.8 77.9 212 177 41 .69 7254.61 2348.83 2307.14 L-80 BTC 197,130 332.7 78.3 213 178 41 .59 7296.20 2307.14 2265.55 L-80 BTC 198,118 334.6 78.8 214 179 42.14 7338.34 2265.55 2223.41 L-80 BTC 199,119 336.5 79.2 Joint Running Joint Depth BOUY FACTOR 0.80 I Joint# Joint# Length Total Bottom Top _ REMARKS: Bouyant Capacity Displmt on rack in hole feet feet feet feet Run 45 centralizers weight bbls bbls 215 180 40.83 7379.17 2223.41 2182.58 L-80 BTC 200,089 338.4 79.7 216 181 41 .15 7420.32 2182.58 2141.43 L-80 BTC 201,067 340.3 80.1 217 182 40.36 7460.68 2141.43 2101.07 _ L-80 BTC 202,026 342.1 80.5 218 183 41 .98 7502.66 2101.07 2059.09 _ L-8o BTC 203,023 344.1 81.0 219 184 41 .64 7544.30 2059.09 2017.45 L-8o BTC 204,013 346.0 81.4 220 185 40.83 7585.13 2017.45 1976.62 L-80 BTC 204,983 347.8 81.9 221 186 39.95 7625.08 1976.62 1936.67 _ L-80 BTC 205,932 349.7 82.3 222 187 38.16 7663.24 1936.67 1898.51 L-80 BTC 206,839 351.4 82.7 223 188 41 .55 7704.79 1898.51 1856.96 _ L-80 BTC 207,826 353.3 83.2 224 189 41 .01 7745.80 1856.96 1815.95 L-80 BTC 208,800 355.2 83.6 22S 190 42.00 7787.80 1815.95 1773.95 _ L-80 BTC 209,798 357.2 84.1 226 191 41 .92 7829.72 1773.95 1732.03 L-80 BTC 210,794 359.1 84.5 227 192 40.87 7870.59 1732.03 1691.16 L-80 BTC 211,765 361.0 85.0 228 193 41 .60 7912.19 1691.16 1649.56 L-80 BTC 212,754 362.9 85.4 229 194 41 .99 7954.18 1649.56 1607.57 L-80 BTC 213,752 364.8 85.9 230 195 41 .35 7995.53 1607.57 1566.22 L-80 BTC 214,734 366.7 86.3 231 196 41 .85 8037.38 1566.22 1524.37 _ L-8o BTC 215,728 368.6 86.8 232 197 41 .74 8079.12 1524.37 1482.63 L-80 BTC 216,720 370.5 87.2 233 198 41 .91 8121.03 1482.63 1440.72 _ L-80 BTC 217,716 372.5 87.7 234 199 42.01 8163.04 1440.72 1398.71 L-80 BTC 218,714 374.4 88.1 235 200 41 .70 8204.74 1398.71 1357.01 _ L-80 BTC 219,705 376.3 88.6 236 201 42.08 8246.82 1357.01 1314.93 L-80 BTC 220,705 378.2 89.0 237 202 41 .92 8288.74 1314.93 1273.01 L-80 BTC 221,701 380.2 89.5 238 203 42.11 8330.85 1273.01 1230.90 L-80 BTC 222,701 382.1 89.9 239 204 42.20 8373.05 1230.90 1188.70 L-80 BTC 223,704 384.0 90.4 240 205 40.69 8413.74 1188.70 1148.01 _ L-80 BTC 224,671 385.9 90.8 241 206 40.45 8454.19 1148.01 1107.56 L-80 BTC 225,632 387.8 91.3 242 207 41 .61 8495.80 1107.56 1065.95 L-80 BTC 226,620 389.7 91.7 243 208 41 .56 8537.36 1065.95 1024.39 ' L-80 BTC 227,608 391.6 92.2 244 209 40.38 8577.74 1024.39 984.01 L-80 BTC 228,567 393.4 92.6 245 210 41 .97 8619.71 984.01 942.04 L-80 BTC 229,565 395.4 93.1 246 211 41 .98 8661.69 942.04 900.06 L-80 BTC 230,562 397.3 93.5 247 212 41 .35 8703.04 900.06 858.71 L-80 BTC 231,544 399.2 94.0 248 213 41 .24 8744.28 858.71 817.47 L-80 BTC 232,524 401.1 94.4 249 214 41 .98 8786.26 817.47 775.49 L-80 BTC 233,522 403.0 94.9 250 215 40.36 8826.62 775.49 735.13 L-80 BTC 234,481 404.9 95.3 251 216 40.10 8866.72 735.13 695.03 L-80 BTC 235,434 406.7 95.7 252 217 41 .50 8908.22 695.03 653.53 L-80 BTC 236,420 408.6 96.2 253 218 41 .10 8949.32 653.53 612.43 i L-8o BTC 237,396 410.5 96.6 254 219 42.00 8991.32 612.43 570.43 / L-80 BTC 238,394 412.4 97.1 255 220 41 .49 9032.81 570.43 528.94 L-80 BTC 239,380 414.3 97.5 256 221 42.08 9074.89 528.94 486.86 L-80 BTC 240,380 416.3 98.0 257 222 41 .83 9116.72 486.86 445.03 L-80 BTC 241,374 418.2 98.4 258 223 41 .86 9158.58 445.03 403.17 _ L-80 BTC 242,368 420.1 98.9 259 224 41 .55 9200.13 403.17 361.62 L-80 BTC 243,355 422.0 99.3 260 225 40.54 9240.67 361.62 321.08 L-80 BTC 244,319 423.9 99.8 261 226 41 .86 9282.53 321.08 279.22 L-80 BTC 245,313 425.8 100.2 262 227 42.01 9324.54 279.22 237.21 L-80 BTC 246,311 427.7 100.7 263 228 41 .97 9366.51 237.21 195.24 L-80 BTC 247,309 429.6 101.1 Joint Running Joint Depth BOUY FACTOR 0.80 Joint# Joint# Length Total Bottom Top REMARKS: Bouyant Capacity Displmt on rack in hole feet feet feet feet Run 45 centralizers weight bbls bbls 264 229 41 .80 9408.31 195.24 153.44 L-80 BTC 248,302 431.6 101.6 265 230 41 .92 9450.23 153.44 111.52 L-80 BTC 249,298 433.5 102.0 266 231 41 .96 9492.19 111.52 69.56 L-80 BTC 250,295 435.4 102.5 267 232 41 .93 9534.12 69.56 27.63 L-80 BTC 251,291 437.3 103.0 Pup 6.03 9540.15 27.63 21.60 Pup Joint 251,434 437.6 103.0 Hanger 0.40 9540.55 21.60 21.20 Hanger effective length 251,444 437.6 103.0 21 .20 9561.75 21.20 0.00 RKB to Load shoulder 251,947 438.6 103.3 s Hilcorp Energy Company �I.r✓' CASING&CEMENTING REPORT Lease&Well No. SRU 24-15 Date 4\13\13 County Kenai Peninsula Burough State Alaska Supv. Mike Leslie/Joe Grubb CASING RECORD TD 9576'MD/9471'TVD Shoe Depth: 9563'MD/9468'ND PBTD: Casing(Or Liner)Detail Setting Depths No.of Jts. Size Wt. Grade THD Make Length Bottom Top Shoe 7 5/8 BTC Wfd 1.63 9,563.75 9,562.12 2 7 5/8 29.7 P-110 BTC 82.26 _ 9,562.12 9,479.86 F.Collar 7 5/8 BTC Wfd 1.28 9,479.86 9,478.58 58 Jts 7 5/8 29.7 P-110 BTC 2,332.69 9,478.58 7,145.61 Pupjnt 75/8 29.7 L-80 BTC 10.09 7,145.61 7,135.52 172 Jts 7 5/8 29.7 L-80 BTC 7,135.52 7,135.52 0.00 Tota Is 9,563.47 Csg Wt.On Hook: 259,000 Type Float Collar: Float No.Hrs to Run: 30 Csg Wt.On Slips: 259,000 Type of Shoe: Bullnose Float Casing Crew: Wfd Fluid Description: 12.7 6%KCL EZ Mud Liner hanger Info(Make/Model): Liner top Packer?: _Yes X No Liner hanger test pressure: Centralizer Placement: One bowspring centralizer 10'from top and btm shoe jt,center the next 2 joints and every other jt up to 5531' CEMENTING REPORT Preflush(Spacer) Type: Mud Push II Density(ppg) 13.5 Volume pumped(BBLs) 50 Lead Slurry Type: Extended Class G Blended Yield: 1.58 • Density(ppg) 14 Volume pumped(BBLs/sx) 320bbl 1137s Mixing/Pumping Rate(bpm): 5.0 bpm Tail Slurry Type: Conventional Class G Blended Yield: 1.58 Density(ppg) 15.4 ppg Volume pumped(BBLs/sx) 53bbls/188.3sx Mixing/Pumping Rate(bpm): 4 bpm I- Post Flush(Spacer) u) Type: Density(ppg) Rate(bpm): Volume: Et LI Displacement: Type: Lease Water Density(ppg) 8.6 Rate(bpm): 4 bpm Volume(actual/calculated): 435.5/435.5 FCP(psi): 2670 Pump used for disp: Cmt Unit Plug Bumped? Yes X No Bump press Casing Rotated? Yes X No Reciprocated? Yes x No 0 %Returns during job 0 Cement returns to surface? Yes X No Spacer returns?_Yes X No Vol to Surf: 0 Cement In Place At: 23:38 Date: 4/13/2013 Estimated TOC: Surface t Method Used To Determine TOC: ...7 ierk •....17-4. 7Dc & Gac& /14 D. Preflush(Spacer) Type: Density(ppg) Volume pumped(BBLs) Lead Slurry Type: Density(ppg) Volume pumped(BBLs) Mixing/Pumping Rate(bpm): Tail Slurry w Type: a Density(ppg) Volume pumped(BBLs) Mixing/Pumping Rate(bpm): 0) Post Flush(Spacer) 0 ED Type: Density(ppg) Rate(bpm): Volume: ipDisplacement: Type: Density(ppg) Rate(bpm): Volume(actual/calculated): FCP(psi): Pump used for disp: Plug Bumped? Yes No Bump press Casing Rotated? Yes No Reciprocated? Yes No %Returns during job Cement returns to surface? Yes No Spacer returns? Yes No Vol to Surf: Cement In Place At: Date: Estimated TOC: Method Used To Determine TOC: WELLHEAD Make Seaboard Type Multibowl Assembly Serial No. Size 16"x10.75" W.P. 3000 Test Head To 3000 PSIG 10 MIN X OK Remarks: Install Pack off and test to 250 to and 3000 hi II CASING RUN IN TALLY WELL NAME: SRU 24-15 DATE: 04/26/13 CASING SIZE 5.000 WEIGHT 15.00 CASING ID 4.408 GRADE L-80 _ THREAI DWC/C-HT Casing (Buttress Casing) CAPACITY 0.0189 bbls/ft TORQUE - MAXIMUM=9,400 MIN=8,400 DISPLACEMENT 0.0046 bbls/ft SHOE DEPTH 11699.8 feet Coupling OD=5.563 , Drift 4.283 HOLE TD 11710.0 feet Foremen: Pederson/Greco I MUD WT 11.40 ppg Joint Running Joint Depth BOUY FACTOR 0.82 Joint# Joint# Length Total Bottom Top REMARKS Bouyant Capacit}Displmt on Rack in hole feet feet feet feet weight bbls bbls Off Bottom 10.23 Block Weight = 25,000 Weatherford Bul ;hoe,5 3/4"OD, SN 5OBTCOPGO Model: A 2.18 2.18 11699.77 11697.59 303HD 25,027 0.0 0.0 BakerLocked Joint 5", 79 38.98 41.16 11697.59 11658.61 DWC w/Centralizer#1 25,509 0.8 0.2 BakerLocked Joint 5", 78 38.70 79.86 11658.61 11619.91 DWC w/Centralizer#2 25,987 1.5 0.4 Weatherford Float Collar, 5 3/4"OD, SN- 05OBTCOPGO Model: B 1.05 80.91 11619.91 11618.86 40211 26,000 1.5 0.4 BakerLocked Joint 5", 77 38.81 119.72 11618.86 11580.05 DWC w/Centralizer#3 26,480 2.3 0.5 Non Baker Landing C 1.05 120.77 11580.05 11579.00 ollar,BTC, 5 3/4"OD 26,493 2.3 0.6 Joint 5"DWC 76 4 38.86 159.63 11579.00 11540.14 w/Centralizer#4 26,973 3.0 0.7 75 5 38.81 198.44 11540.14 11501.33 Jt 5" DWC w/cent#5 27,453 3.7 0.9 74 6 38.89 237.33 11501.33 11462.44 it 5" DWC w/cent#6 27,933 4.5 1.1 73 7 40.05 277.38 11462.44 11422.39 Jt 5" DWC w/cent#7 28,428 5.2 1.3 72 8 38.42 315.80 11422.39 11383.97 Jt 5" DWC w/cent#8 28,903 6.0 1.4 71 9 38.71 354.51 11383.97 11345.26 Jt 5" DWC w/cent#9 29,382 6.7 1.6 70 10 38.92 393.43 11345.26 11306.34 Jt 5" DWC w/cent#10 29,863 7.4 1.8 69 11 38.88 432.31 11306.34 11267.46 Jt 5" DWC w/cent#11 30,343 8.2 2.0 68 12 38.52 470.83 11267.46 11228.94 Jt 5" DWC w/cent#12 30,819 8.9 2.2 67 13 38.97 509.80 11228.94 11189.97 Jt 5" DWC w/cent#13 31,301 9.6 2.3 66 14 39.06 548.86 11189.97 11150.91 Jt 5"DWC w/cent#14 31,784 10.4 2.5 65 15 38.20 587.06 11150.91 11112.71 Jt 5" DWC w/cent#15 32,256 11.1 2.7 64 16 39.23 626.29 11112.71 11073.48 Jt 5" DWC w/cent#16 32,741 11.8 2.9 63 17 38.24 664.53 11073.48 11035.24 Jt 5" DWC w/cent#17 33,214 12.5 3.0 62 18 37.64 702.17 11035.24 10997.60 Jt 5" DWC w/cent#18 33,679 13.3 3.2 61 19 39.10 741.27 10997.60 10958.50 Jt 5" DWC w/cent#19 34,162 14.0 3.4 60 20 38.85 780.12 10958.50 10919.65 Jt 5" DWC w/cent#20 34,642 14.7 3.6 59 21 39.23 819.35 10919.65 10880.42 Jt 5" DWC w/cent#21 35,127 15.5 3.8 58 22 37.60 8.56.95 10880.42 10842.82 Jt 5" DWC w/cent#22 35,592 16.2 3.9 57 23 38.99 895.94 10842.82 10803.83 Jt 5"DWC w/cent#23 36,074 16.9 4.1 56 24 38.76 934.70 10803.83 10765.07 Jt 5" DWC w/cent#24 36,553 17.6 4.3 55 25 39.19 973.89 10765.07 10725.88 Jt 5" DWC w/cent#25 37,037 18.4 4.5 54 26 38.91 1012.80 10725.88 10686.97 Jt 5" DWC w/cent#26 37,518 19.1 4.6 53 27 38.60 1051.40 10686.97 10648.37 Jt 5" DWC 37,995 19.8 4.8 52 28 38.87 1090.27 10648.37 10609.50 Jt 5" DWC 38,476 20.6 5.0 51 29 38.14 1128.41 10609.50 10571.36 Jt 5" DWC 38,947 21.3 5.2 50 30 38.45 1166.86 10571.36 10532.91 Jt 5" DWC 39,422 22.0 5.3 49 31 38.75 1205.61 10532.91 10494.16 Jt 5" DWC 39,901 22.8 5.5 48 32 38.95 1244.56 10494.16 104.55.21 Jt 5" DWC 40,383 23.5 5.7 47 33 39.16 1283.72 10455.21 10416.05 Jt 5" DWC 40,867 24.2 5.9 46 34 38.68 1322.40 10416.05 10377.37 Jt 5" DWC 41,345 25.0 6.1 45 35 38.79 1361.19 10377.37 10338.58 Jt 5" DWC 41,824 25.7 6.2 Joint Rur Joint Depth BO' 'ACTOR 0.82 Joint# Joint# Length Tot,.. Bottom Top REMARKS Bouyant Capacity Displmt on Rack in hole feet feet feet feet weight bbls bbls 44 36 38.91 1400.10 10338.58 10299.67 Jt 5" DWC 42,305 26.4 6.4 43 37 39.03 1439.13 10299.67 10260.64 Jt 5" DWC 42,788 27.2 6.6 42 38 39.25 1478.38 10260.64 10221.39 Jt 5" DWC 43,273 27.9 6.8 41 39 39.02 1517.40 10221.39 10182.37 Jt 5" DWC 43,755 28.6 6.9 40 40 38.61 1556.01 10182.37 10143.76 Jt 5" DWC 44,232 29.4 7.1 39 41 39.08 1595.09 10143.76 10104.68 Jt 5" DWC 44,715 30.1 7.3 38 42 38.93 1634.02 10104.68 10065.75 Jt5" DWC 45,196 30.8 7.5 37 43 39.03 1673.05 10065.75 10026.72 Jt 5" DWC 45,679 31.6 7.7 36 44 38.78 1711.83 10026.72 9987.94 Jt5" DWC 46,158 32.3 7.8 35 45 39.00 1750.83 9987.94 9948.94 Jt 5" DWC 46,640 33.0 8.0 34 46 38.93 1789.76 9948.94 9910.01 Jt5" DWC 47,121 33.8 8.2 33 47 38.38 1828.14 9910.01 9871.63 Jt 5" DWC 47,596 34.5 8.4 32 48 40.74 1868.88 9871.63 9830.89 Jt 5" DWC 48,099 35.3 8.6 31 49 38.91 1907.79 9830.89 9791.98 Jt 5" DWC 48,580 36.0 8.7 30 50 38.58 1946.37 9791.98 9753.40 Jt 5" DWC 49,057 36.7 8.9 29 51 38.77 1985.14 9753.40 9714.63 Jt 5" DWC 49,536 37.5 9.1 28 52 38.57 2023.71 9714.63 9676.06 Jt 5" DWC 50,013 38.2 9.3 27 53 36.92 2060.63 9676.06 9639.14 Jt 5" DWC 50,469 38.9 9.4 26 54 38.91 2099.54 9639.14 9600.23 Jt 5" DWC 50,950 39.6 9.6 25 55 35.22 2134.76 9600.23 9565.01 Jt5" DWC 51,386 40.3 9.8 24 56 38.20 2172.96 9565.01 9526.81 Jt 5" DWC 51,858 41.0 10.0 23 57 38.54 2211.50 9526.81 9488.27 Jt 5" DWC 52,334 41.7 10.1 22 58 39.06 2250.56 9488.27 9449.21 Jt 5" DWC 52,817 42.5 10.3 21 59 38.96 2289.52 9449.21 9410.25 Jt 5" DWC 53,298 43.2 10.5 20 60 39.00 2328.52 9410.25 9371.25 Jt 5" DWC 53,781 43.9 10.7 XO,Flex-Lock Liner Hanger,XO,RS Packoff Seal Nipple Jt,HRD ZXP 32.14 2360.66 9371.25 9339.11 Packer,PBR. 54,178 44.6 10.8 6.75 2367.41 9339.11 9332.36 Running Tool 54,261 44.7 10.8 XO,HT-38 x 3 1/2 IF 2.21 2369.62 9332.36 9330.15 (BxP) 54,289 44.7 10.9 546.06 2915.68 9330.15 8784.09 (18) HWDP 61,038 55.0 13.4 8773.09 11688.77 8784.09 11.00 279 juts DP to surface 169,473 220.6 53.5 Make up 15' Pup&XO to bottom of Cement Head. Make up 5' Pup to top and 20' ft Pup 20.00 11708.77 11.00 -9.00 stage on Pipe Skate 169,720 221.0 53.6 Top Joint of 5" DWC to center of Hanger=8.0'- (9367) Top Joint of 5" DWC to center of Packer= 19.0'- (9356) 7 5/8" Casing couplings a 9435,9396,9355&9314.... Spare Joints 19 61 38.88 18 62 38.81 17 63 38.92 16 64 33.92 15 65 38.92 14 66 38.89 13 67 38.69 12 68 39.16 11 69 36.93 10 70 39.05 9 71 39.21 8 72 39.04 7 73 38.77 6 74 39.18 5 75 38.83 4 76 39.17 3 77 37.46 2 78 38.54 1 79 37.88 Hilcorp Energy Company CASING&CEMENTING REPORT Lease&Well No. SRU 24-15 Date 27-Apr-13 County Kenai Peninsula Burough State Alaska Supv. Rance Pederson/Jimmy Greco CASING RECORD TD 11710.00 Shoe Depth: 11699.8'MD/11499.0'TVD PBTD: MD/'TVD Casing(Or Liner)Detail Setting Depths . No.of Jts. Size Wt. Grade THD Make Length Bottom Top Shoe _ 5 STL Wfd 2.18 11,699.77 11,697.59 2 5 15 L-80 BTC _ 76.98 11,697.59 11,619.91 F.Collar 5 STL Wfd 1.05 11,619.91 11,618.86 1 5 15 L-80 BTC _ 38.81 _ 11,618.86 11,580.05 Landing CLR 5 STL 1.05 11,580.05 11,579.00 57 15 L-80 BTC 2,207.75 11,579.00 9,371.25 Hanger Baker 32.14 9,371.25 9,339.11 Running tools _ Baker 8.96 _ 9,339.11 9,330.15 DP&HWDP 4 14.4 HT38 WFD 8,893.03 9,033.15 11.00 Totals Csg Wt.On Hook: 169,720 Type Float Collar: Float No.Hrs to Run: 20 Csg Wt.On Slips: 0 Type of Shoe: DJ/Float Casing Crew: Wfd Fluid Description: 11.4 ppg / 6%KCUPHPA Mud/ PV=13 YP=19 HTHP=10.6 Liner hanger Info(Make/Model): BAKER-ZXP Liner top Packer?: x Yes _No Liner hanger test pressure: 1500 Centralizer Placement: every 38' on joints 1 thru 26 CEMENTING REPORT Preflush(Spacer) Type: Mud Push II Density(ppg) 12 Volume pumped(BBLs) 10 BBLS • Lead Slurry Type: EasyBLOK cement Yield: 1.35 Density(ppg) 15.3 ppg Volume pumped(BBLs/sx) 101 bbls/420sx Mixing/Pumping Rate(bpm): 5 bpm Tail Slurry Type: Yield: 1.35 Density(ppg) Volume pumped(BBLs/sx) Mixing/Pumping Rate(bpm): H Post Flush(Spacer) • 6— Type: Density(ppg) Rate(bpm): Volume: re L Displacement: Type: 6%KCL/PHPA Density(ppg) 11.4 Rate(bpm): 5bpm Volume(actual/calculated): 139/138 FCP(psi): 957 Pump used for disp: CMT pumps Plug Bumped? X Yes No Bump press 3000 Casing Rotated? x Yes No Reciprocated? x Yes - No %Returns during job 20 Cement returns to surface? Yes x No Spacer returns? Yes x No Vol to Surf: 36 Cement In Place At: • 23:12 Date: 4/27/2013 Estimated TOC: 9,339 Method Used To Determine TOC: Preflush(Spacer) Type: Density(ppg) Volume pumped(BBLs) Lead Slurry Type: Density(ppg) Volume pumped(BBLs) Mixing/Pumping Rate(bpm): Tail Slurry • Type: w a Density(ppg) Volume pumped(BBLs) Mixing/Pumping Rate(bpm): o • Post Flush(Spacer) • o Type: Density(ppg) Rate(bpm): Volume: 2 Displacement: • Type: Density(ppg) Rate(bpm): Volume(actual/calculated): FCP(psi): Pump used for disp: Plug Bumped? Yes No Bump press Casing Rotated? Yes No Reciprocated? Yes No %Returns during job Cement returns to surface? Yes No Spacer returns? Yes No Vol to Surf: Cement In Place At: Date: Estimated TOC: Method Used To Determine TOC: WELLHEAD Make Seaboard Type SMB-22 Serial No. H245745 Size 16 3/4 x 11 W.P.3000/5000 ! Test Head To 3000 PSIG 10 MIN X OK Remarks: Tripoint LLC VPacker &Se, Tool Division Company: Date: Casing Size: Casing Wgt: Casing Grade: Casing Thread: Depth: Hilcorp Alaska,LLC 22-Apr-13 7 5/8" 29.7# L-80 BTC Lease/Field: Well M: Liner Size: Liner Wgt: Liner Grade: Liner Thread: Top Of Liner: Swanson River Field SCU 24-15 5" 15# L-80 DWC/CHT Offshore Block: Liner Size: Liner Wgt: Liner Grade: Liner Thread: Depth of Liner: County/Parish State: Deviation: Tubing Size: Tubing Wgt: Tubing Grade: Tubing Thread: PBTD: Kenai Peninsula Borougt Alaska 2 7/8" 6.5 L-80 8RD EUE Completion Interval BHP: BHT: Fluid: Tool Specialist: Jordan Waters Item Description O.D. I.D. Length Depth I I 27 OKB 18' 18.00 0.00 III 26 27 11"Hanger 11.000 2.992 0.55 18.00 I I I 25 26 3 1/2"Pup Joint 9.3# 3.500 2.992 3.75 18.55 1 25 3 1/2"B X 2 7/8"P Cross Over 3.500 2.992_ 1.00 22.30 24 2-7/8"6.5#L-80 EUE Tubing Joints(123) 3.688 2.441 3920.54 23.30 23 2-7/8"6.5#L-80 EUE Tubing Pup Joint 3.688 2.441 3.82 3,943.84 22 Gas Lift Mandrel#3 4.750 2.441 7.05 3,947.66 1 I 24 21 2-7/8"6.5#L-80 EUE Tubing Pup Joint 3.688 2.441 4.28 3,954.71 20 2-7/8"6.5#L-80 EUE Tubing Joints(100) 3.688 2.441 3187.68 3,958.99 19 2-7/8"6.5#L-80 EUE Tubing Pup Joint 3.688 2.441 3.86 7,146.671 18 Gas Lift Mandrel#2 4.750 2.441 7.04 7,150.53 I■I 17 2-7/8"6.5#L-80 EUE Tubing Pup Joint 3.688 2.441 4.23 7,157.571 23 16 2-7/8"6.5#L-80 EUE Tubing Joints(64) 3.688 2.441 2035.99 7,161.80 22 15 2-7/8"6.5#L-80 EUE Tubing Pup Joint 3.688 2.441 3.86 9,197.79 II 21 14 Gas Lift Mandrel#1 4.750 2.441 7.07 9,201.65 13 2-7/8"6.5#L-80 EUE Tubing Pup Joint 3.688 2.441 4.27 9,208.72 III 12 2-7/8"6.5#L-80 EUE Tubing Joint 3.688 2.441 32.00 9,212.99 I IS 20 11 2-7/8"6.5#L-80 EUE Tubing Pup Joint 3.688 2.441 3.63 9,244.991 IiiI 19 10 Chemical Injection Mandrel 4.750 2.441 7.06 9,248.621 9 2-7/8"6.5#L-80 EUE Tubing Pup Joint 3.688 2.441 4.08 9,255.68 18 8 2-7/8"6.5#L-80 EUE Tubing Joint 3.688 2.441 31.97 9,259.76 ICI 17 7 2-7/8"6.5#EUE"X"Landing Nipple 3.688 2.313 0.76 9,291.73 II 6 2-7/8"6.5#L-80 EUE Tubing Pup Joint 3.688 2.441 5.60 9,292.49 5 7 5/3"FH Hydraulic Packer 24-29.7# 2.441 6.66 9,298.09 II 16 4 2-7/8"6.5#L-80 EUE Tubing Joints(46) 3.688 2.441 1468.78 9,304.75 3 2-7/8"6.5#EUE"X"Landing Nipple 3.688 2.313 0.77 10,773.53 1111 15 2 2-7/8"6.5#L-80 EUE Tubing Joint 3.688 2.441 31.80 10,774.30 14 1 2-7/8"EUE WLEG 3.688 2.441 0.55 10,806.10 III 13 10,806.65 I 12 II 11 10 H I■I 9 - 1t Ia 8 El 7 - 1111 6 5 UI 4 II 1-1 3 11"Hanger W/3 1/2"X 2 7/8"Cross Over On Bottom And 3 1/2"Pup PICK UP 60K lal 337 Total Joints in The Hole SLACK OFF 54K 1111 1 Sheer Value for 7 5/8"FH Hyd Packer is 30K over String weight BLOCK 6K i• Printed on 6/25/2013 @ 3:39 PM Page 1 of 1 Landon Ellison Hilcorp Alaska, LLC GeoTech II 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Tele: 907 777-8339 1rtM,�t,:tt:e ku.1.1A. Fax: 907 777-8510 E-mail: lellison @hilcorp.com DATE 05/06/2013 RIC INIVIID MAYO 72013 To: Alaska Oil & Gas Conservation Commission Makana Bender Natural Resource Technician 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL Transmitted herewith are cuttings from SRU 24-15 WELL ,i l !%%SAMPLE INTER Iliil;�'�l owl_ 'I"4. SRU 24-15 3000'-4200' SRU 24-15 4200'-5400' SRU 24-15 5400-6600' SRU 24-15 6600'-7800' SRU 24-15 7800'-9120' SRU 24-15 9120'-10260' SRU 24-15 10260'-10980' SRU 24-15 10980'-11340' SRU 24-15 11340'-11710' Please include current contact information if different from above. I.S Jr( :\) Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 114.1.4e0,1t (� ✓`— Date: / /✓1 u--) 2 i al 3 - 6 -7 6)w \\I%% s� THE STATE Alaska 0'i1 and Gas °fALASKA Conservation Commission GOVERNOR SEAN PARNELL 333 West Seventh Avenue OF to, Anchorage, Alaska 99501-3572 S Main: 907.279.1433 Fax: 907.276.7542 Chad Helgeson Operations Manager Hilcorp Alaska, LLC , 3- 007 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Re: Swanson River Field, Hemlock Oil Pool, SRU 24-15 Sundry Number: 313-208 Dear Mr. Helgeson: 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 Commission grants for good cause shown, a person affected by it may file with the Commission 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, Daniel T. Seamount, Jr. cid Commissioner DATED this _ day of May, 2013. Encl. ^C c RECEIVED STATE OF ALASKA APR 3 d 2013 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 1.Type of Request: Abandon❑ Plug for Redril ❑ Perforate New Pod ❑ Repair Werj Change Approved Program❑ Suspend❑ Plug Perforations❑ D Perforate J Pull TubinC Time Extension❑ Operations Shutdowi❑ Re-enter Susp.Wel � s-.2.13 Stimulate❑ Alter Casing Other Complete'-S 1.-C-- 0 2.Operator Name: r. Hilcorp Alaska,LLC 4.Current Well Class: 5.Permit to Drill Number Exploratory ❑ Development la 213-007- 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic 111 Service El 6.API Number Anchorage,Alaska 99503 50-133-20609-00' 7.If perforating: 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? CO 123A Swanson River Unit(SRU)24-15. Will planned perforations require a spacing exception? Yes ❑ No El 9.Property Designation(Lease Number): 10.Field/Pool(s): A0283484,A028406 Swanson River Field/Hemlock Oil Pod 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth ND(ft): Plugs(measured): Junk(measured): 11,710 11,495 11,577'• 11,367'- N/A N/A Casing Length Size MD ND Burst Collapse Structural Conductor 72' 16" 72' 72' Surface 3,023' 10-3/4" 3,023' 3,01T 5,210 psi 2,480 psi Intermediate 9,562' 7-5/8" 9,562' 9,467' 6,890 psi 4,790 psi Production _ Liner 2,329' 5" 11,700' 11,485 8,290 psi 7,250 psi Perforation Depth MD(ft): Perforation Depth ND(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(t)and ND(ft): N/A;N/A N/A;N/A 12.Attachments: Description Summary of Proposal 0 13.Well Class after proposed work: Detailed Operations Program n BOP Sketch n Exploratory n Stratigraphafl Development n Service n 14.Estimated Date for 15.Well Status after proposed work: 05/04/13 Commencing Operations: Oil 0 Gas ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG [] Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Chad Helgeson Phone: 907-777-8405 Email chelgeson@hilcorp.com Printed Name Chad Helgeson Title Operations Manager / Signature ,,�/` Phone 907-777-8405 Date Y/j0//3 COMMISSION USE ONLY [[[ Conditions of approval: Notify Commission so that a representative may witness Sundry Number. 3 1 1 5 �' 'V Plug Integrity ❑ BOP Test lZr Mechanical Integrity Test ❑ Location Clearance ❑ Other: --i gcoo ie a 4. /Sot yes t- 46 Z 5-0e) io 5 it /4 n --L s`t l 4(-1-.-. RBDMS MAY - 3 2013* Spacing Exception Required? Yes ❑ No Subsequent Form Required: l U" �I Q 7 APPROVED BY 3-7_ / 2 Approved by: krr�^p/CO(( 13,4, COMMISSIONER THE CtO�MMISSION Date: -�\v y ` 7 /J `�Z /3 Submit Form and 4'0 ,o'Form 10-403(Revised 10/2012) Appra ctGi1vN fq 1tonths from ttj'e date of approval. /:/s g „ents�u plicate A ,c) Well Prognosis Well: SCU 24-15 Hilcorp Alaska,LLC Date:4/28/2013 Well Name: SRU 24-15 API Number: 50-133-20609-00 Current Status: New Cased Oil Producer Leg: N/A Estimated Start Date: May 4th, 2013 Rig: Williams 405 Reg.Approval Req'd? 403 Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 213-007 First Call Engineer: Chad Helgeson (907)777-8405 (0) (907) 229-4824 (M) Second Call Engineer: Jason Ewing (907)777-8441 (0) AFE Number: 1310631 Maximum Expected BHP: —5,500 psi @ 11,111'TVD in H-10 Sand This zone is not produced in any nearby offset wells to model the It is assumed to have original reservoir pressure @ 5,500 psi. Max. Allowable Surface Pressure: —611 psi Based on 6% KCI brine left in the well after perforating underbalanced before KW fluid is circulated through well. If original pressure in the H-10 sand. —1,833psi Based on 100% oil in tubing during test With original field BHP. Brief Well Summary This well was drilled with the Doyon Arctic Fox in March/April 2013. The completion and following work is proposed to be completed with Williams Rig#405. Notes Regarding Wellbore Condition The well is cased with filtered 6% KCI brine. No open perforations. Casing pressure tested to 3,500 psi for 30 min. Completion procedure: 1. RD Doyon Arctic Fox Rig. 2. MIRU Williams 405 workover rig. 3. Set BPV in tubing hanger, ND tree, NU 11" BOPE and test to 250psi low/4,000psi high, annular to 250psi low/2,500psi high (hold each valve and test for 10-min). Record accumulator pre-charge pressures. a. Notify AOGCC 24hrs in advance to witness test. b. Notify BLM 48 hrs in advance of BOP test. c. (Crew will be working 12hr shifts and well will be secured nightly with TIW valves and BOPE. During testing phase, rig will be manned 24hrs.) 4. Release test pressure, pull BPV and install handling sub in hanger. 5. Pull tubing hanger and POH with 2-7/8" kill string and lay down tubing. 6. RU E-line w/lubricator,test to 1500 psi. 7. PU PNL logging tool and log well from TD to 3,000ft. (may take 2 runs depending on centralizer availability). Send logs to town on lower interval as soon as possible to start evaluation for determining perf intervals. Well Prognosis Well: SCU 24-15 Hilcorp Alaska,LLC Date:4/28/2013 8. RIH with CBL tool, log up from bottom (approx. 11,570ft)to 3,000ft. (may take 2 runs depending on centralizer availability). 9. POH and RD e-line unit. r,,"/ 10. PU TCP guns for H-10 interval (to be determined after PNL logs are run,approx. 11,315'-11,348') ed and well test completion on 2-3/8"tubing and 2-7/8"workstring to surface (see attached test schematic#1). 11. RU E-line,tie-in TCP guns on depth. 12. Set production packer,test packer with 2,500 psi on casing. 13. RU flow equipment at surface with TIW valves,flow cross to choke manifold. 14. Pressure up delayed time firing head,and perforate TCP guns. Bleed pressure off prior to guns firing. 15. Flow test well (swab well in if necessary, making pulls in 500ft increments.) if well starts to flow monitor until it is determined if there is oil or water flowing from formation. Swab a minimum of the tubing volume+50%excess to surface to determine formation fluids(min 75 bbls) 16. After well is tested, SI well and allow to build pressure. Once well pressure is stabilized, RIH with BHP pressure gauge on slickline. a. If well does not flow and there is no sign of oil, i. Release packer and circulate well clean with 6%KCI. ii. TOOH and rack back tubing. iii. RU a-line and RIH and set bridge plug 25ft above perforations. iv. Test plug to 2,500 psi. b. If well shows signs of oil, but does not flow on its own, i. Release packer and circulate well clean with 6% KCI ii. TOOH and rack back tubing. iii. RU eline and RIH and set composite plug. iv. Test plug to 2,500 psi. c. If well flows on its own, i. RU slickline, RIH and set PXN plug in xn-nipple below the packer. ii. Test plug in tubing to 3,000 psi. iii. Release on/off tool from packer, POOH with tubing. iv. RU eline RIH and set retrievable bridge plug with a-line. v. Spot 10ft of sand on top of bridge plug. CP./ 17. PU 2nd TCP gun for H-6/7 (depths to be determined after PNL logs are run)and run well test completion on 2-3/8"tubing and then2-7/8"workstring to surface. 18. Repeat steps 11-16 for next interval. a. If this zone is all water and the zone below is oil producing interval that will be brought onto production, squeeze with cement(procedure to be provided if necessary). 19. PU 3rd TCP gun assembly and repeat steps 11-16. c$'-Z c' a. If this zone is all water and the zone below is oil producing interval that will be brought onto production,squeeze with cement(procedure to be provided if necessary). Based on rates and pressures from tested intervals,determine which zones need to be opened. If any composite bridge plugs were set or cement squeezes were completed, RIH with bit, drill collars and jars and drill up composite plugs and cement. 21. Ensure squeezes are completed over any zones that need to be abandoned. 22. Circulate hole with clean 6%KCI(filtered to 10 micron). 23. If well has not flowed in any of the previous tests perform the following steps a. POH and LD the 2-7/8"workstring. Well Prognosis Well: SCU 24-15 Hilcorp Alaska,LLC Date:4/28/2013 b. RU E-line, PU 3-3/8" perforating guns and RIH and perforate the H1-5 sands. c. RD e-line. d. Move to step 25. 24. If well has flowed on previous perforating well tests and KW fluid is in the well perform the following steps. a. PU TCP perforating completion consisting of the same BHA assembly used in previous well tests,except a Champ Packer may be used. b. RU Test/flowback equipment as necessary for perforating with a flowline to the choke. c. Perforate the sand H1-5 as(depths determined as defined on PNL logs). d. Monitor well for at least 1hr to determine if any flow is achieved. e. Release packer and circulate KW fluid around completion. f. Once bottoms up has been achieved without any gas bubbles, RD pumping equipment and slowly lay down work string(do not swab the well in). 25. RIH w/completion on new 2-7/8" 8rd EUE tubing(as shown on proposed schematic),set packer at approx.9,350ft. a. Drop prong in RHCP plug. b. Pressure test tubing to 3,000 psi (chart for 30 min). Test casing pressure to 2,500 psi (chart 30 min). 26. Set BPV, ND BOP, NU Tree test(5,000 psi). 27. RDMO rig and equipment. 28. Pull BPV.Turn well over to production. 29. Turn well over to production. 30. NU piping and flowlines. 31. Gas lift well, unloading fluid from well to production. 32. RU slickline, PT lubricator to 2000 psi Hi 250 low. 33. RIH and pull RHCP prong and plug. 34. Start production, collect oil sample and send in for analysis. 35. Flow well to production 36. Within 5 days of production, notify AOGCC 24hrs in advance of SSV testing. Attachments: 1. Existing Post Drill Well Schematic(As left by Doyon work) 2. Proposed Schematic 3. Williams BOP Schematic 4. Example Test Completion Schematics(3 different schematics) Swanson River Unit r'OST DRILLING Well SRU2445 PTD: 213-007 u,r.k r.i•i.�: SCHEMATIC API: 50-133-20609-00 I6" 1 CASING DETAIL r Size Type Wt Grade Conn. ID Top Btm Conductor— ia-3/4 yip 16" Driven to Set 109 X-56 Weld 16" Surf 72' Depth 10-3/4" Surf.Csg 45.5 L-80 Buttress 9.875" Surf 3,023' 29.7 L-80 BTC 6.75" Surf 7,144' 7-5/8" Intermediate p-110 arj 29.7 HC BTC 6.75" 7,144' 9,562' 5" Prod Lnr 15 L-80 D HT/C 4.283" 9,371' 11,700' TUBING 2-7/8" Kill String 6.4 L-80 8rd EUE 2.441" Surf 1,208' • • 1,`L, 7-5/8"!J , I 51 PBTD=11,577'/PBTVD=11,367' TD=11,710'/ND=11,458' Updated by DMA 04-30-13 Swanson II PROPOSED WeII SRU River 24-15 Unit PTD: 213-007 Hikwp Alaska,LLC COMPLETION API: 50-133-20609-00 T'r �" 16° 41 I ' L CASING DETAIL , Size Type Wt Grade Conn. ID Top Btm 2 11•11Mi Conductor- 10-3/4" 16" Driven to Set 109 X-56 Weld 16" Surf 72' Depth 10-3/4" Surf.Csg 45.5 L-80 Buttress 9.875" Surf 3,023' 29.7 L-80 BTC 6.75" Surf 7,144' 7-5/8" Intermediate P-110 29.7 HC BTC 6.75" 7,144' 9,562' 3 i1 5" Prod Lnr 15 L-80 D HT 4.283" 9,396' 11,700' TUBING 2-7/8" Production 6.4 L-80 8rd EUE 2.441" Surf 10,200' 4 IIMIIi1 JEWELRY DETAIL . Il . No. Depth ID OD Item 5 MET 1 20' 2.44" - Tubing Hanger 6 • 2 3,400' 2.44" 4.750" 2-7/8"SFO-1 Mandrel 8RD • 7 ,�� 3 5,500' 2.44" 4.750" 2-7/8"SFO-1 Mandrel 8RD 8 4 7,500' 2.44" 4.750" 2-7/8"SFO-1 Mandrel 8RD (1�11�11 5 8,600' 2.44" 4.750" 2-7/8"SFO-1 Mandrel 8RD _y 6 9,000' 2.44" 3.50" 2-7/8"expansion joint(4-6ft travel) 9 7 9,200' 2.44" 4.750" 2-7/8"SFO-1 Mandrel 8RD-orifice .. 8 9,350' 2.313" 6.5" On/Off Tool w/X Nipple 7-5/8" 9 9,352' 2.44" 6.75" Arrowset Mechanical Packer Z 10 10 10,600' 2.44" 3.5" WL Entry Guide w/X Nipple 44 1/4 14 al PERFORATIONS Zone Top(MD) Btm(MD) Top(ND) Btm(TVD) SPF Length Date uz ±10,921 ±10,965 ±10,745 ±10,786' 6 44 May 2013 ,1 t, H1/5 ±10,984 ±11,095 ±10,804 ±10,909' 6 111 May 2013 s` H6/7 ±11,120 ±11,151 ±10,933' ±10,962' 6 31' May 2013 H-10 ±11,315 ±11,348 ±11,348' ±11,148' 6 33' May 2013 5" 4 h. PBTD=11,577'/PBTVD=11,367' TD=11,710'/TVD=11,494' Updated by DMA 04-30-13 • ' II Swanson River SRU 2 04/29/2013 4-15 Hitnnrp:MIAs.I.IA: Swanson River SRU 24-15 Williams BOP 2013 fir,. 9 • iii iii I t iii tit 'ti in iii 3.46' Shaffer 11"5M III ill III ill I / 5 Shaffer LWS ® 2 75' ..mitt : 11"5M 2 1/16 10M Choke and Kill Valves Te: 'MEW a 0 • J ■ • • i 2.00' alil■tilJU 1/1 ' e..i. ■r. -,■ 11.* hi.le {. c,). ; i�ma ` I!1* 'i. — —I . '1 Ea.i..; le i 11111.1ti-Allii.1- ..oposed Test Swanson River Unit II Well SRU 24-15 Completion #1 PTD: 213-007 API: 50-133-20609-00 Hiloorp Alaska,LL( /e 167 41 CASING DETAIL Size Type Wt Grade Conn. ID Top Btm Conductor— 16" Driven to Set 109 X-56 Weld 16" Surf 72' Depth 10-3/4.. 10-3/4" Surf.Csg 45.5 L-80 Buttress 9.875" Surf 3,023' ' 29.7 L-80 BTC 6.75" Surf 7,144' t: 7-5/8" Intermediate P-110 1 29.7 HC BTC 6.75" 7,144' 9,562' 't DWC/C 5 ® 5" Prod Lnr 15 L-80 HT 4.283" 9,396' 11,700' 4 11 . TUBING i: 2-7/8" Workstring 7.9 P-110 PH6 2.323" Surf 11,000' 2-3/8" Production 4.6 L-80 8RD 1.995" 11,000' 11,315' JEWELRY DETAIL No. Depth ID OD Item 1 0' 2.44" • Rig Floor,TIW Valve 2 ±11,000' 1.995" 3.5" XO 2-7/8"PH6 x 2-3/8"8RD • 3 ±11,267' 1.875" Sliding sleeve XA,w/X-nipple 4 ±11,298' 1.875" 4" On/off tool,w/X-nipple 5 ±11,300' 1.995" 4.408" Packer 6 ±11,304' 1.805" XN-Nipple 7 ±11,305' 1.995" XO 2-7/8"8RD x 2-3/8"8RD 8 ±11,306' 2.44" 4.750" Perforated Production Nipple(6'long) 2 9 ±11,312' 2.44" 4.750" TCP Firing Head 10 ±11,315' 3.375" Tubing Conveyed Perforating Guns Z 3 PERFORATIONS 4 Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) SPF Length Date iii_Liti 5 H-10 ±11,315' ±11,348' ±11,148' 33' May 2013 i L:4, 6 a8 •• •• 9 •• •••• 10 5- 4 PBTD=11,577'/PBTVD=11,367' TD=11,710'/TVD=11,494' Updated by DMA 04-30-13 G ` ' • -xa m p l e Test Swanson River Unit Well SRU 24-15 Completion #2 ell 213-007 API: 50-133-20609-00 Hilcorp Alaska,LLC I 16" L CASING DETAIL Size Type Wt Grade Conn. ID Top Btm Conductor- 10-3/4" 16" Driven to Set 109 X-56 Weld 16" Surf 72' . Depth 10-3/4" Surf.Csg 45.5 L-80 Buttress 9.875" Surf 3,023' 29.7 L-80 BTC 6.75" Surf 7,144' 7-5/8" Intermediate p-110 . 29.7 HC BTC 6.75" 7,144' 9,562' . 5" Prod Lnr 15 L-80 D WC 4.283"4.283" 9,396' 11,700' , TUBING 2-7/8" Workstring 7.9 P-110 PH6 2.323" Surf 11,000' 2-3/8" Production 4.6 L-80 8RD 1.995" 11,000' 11,120' JEWELRY DETAIL No. Depth ID OD Item 1 0' 2.44" - Rig Floor,TIW Valve 2 ±11,000' 1.995" 3.5" XO 2-7/8"PH6 x 2-3/8"8RD 3 ±11,067' 1.875" Sliding sleeve XA,w/X-nipple 4 ±11,098' 1.875" 4" On/off tool,w/X-nipple 5 ±11,100' 1.995" 4.408" Packer 6 ±11,109' 1.805" XN-Nipple 7 ±11,110' 1.995" XO 2-7/8"8RD x 2-3/8"8RD 7-5/8" 11S 8 ±11,112' 2.44" 4.750" Perforated Production Nipple(6'long) 2 9 ±11,118' 2.44" 4.750" TCP Firing Head 10 ±11,120' 3.375" Tubing Conveyed Perforating guns. 3 1 , 4 11 ±11,290' Bridge Plug(10ft sand on top) 'aim' 5 '/ 6 7 PERFORATIONS 8 Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) ' SPF Length Date S. H6/7 ±11,120' ±11,151' ±10,933' ±10,962' 6 May 2013 •. • ,,...6"1 H-10 ±11,315' ±11,348' ±11,117' ±11,148' 6 33' May2013 • •••• 10 11 N-/0 s" 4 IS PBTD=11,577'/PBTVD=11,367' TD=11,710'/ND=11,494' 111 Updated by DMA 04-30-13 ' •xa m ple Test Swanson River Unit Well SRU 24-15 Completion #3 ell 213-007 API: 50-133-20609-00 Hikorp Alaska,Ilk 1 IGJ L t: . CASING DETAIL Size Type Wt Grade Conn. ID Top Btm Conductor— 10-3,4 16" Driven to Set 109 X-56 Weld 16" Surf 72' Depth 10-3/4" Surf.Csg 45.5 L-80 Buttress 9.875" Surf 3,023' 29.7 L-80 BTC 6.75" Surf 7,144' • 7-5/8" Intermediate ' p-110 29.7 HC BTC 6.75" 7,144' 9,562' .q 5" Prod Lnr 15 L-80 DWC/C 9,396' 11,700' 1; TUBING 2-7/8" Workstring 7.9 P-110 PH6 2.323" Surf 10,836' 2-3/8" Production 4.6 L-80 8RD 1.995" 10,836' 10,921' JEWELRY DETAIL No. Depth ID OD Item 4S' 1 0' 2.44" - Rig Floor,TIW Valve 2 ±10,836' 1.995" 3.5" XO 2-7/8"PH6 x 2-3/8"8RD ' 3 ±10,867' 1.875" Sliding sleeve XA,w/X-nipple 4 ±10,898' 1.875" 4" On/off tool,w/X-nipple 5 ±10,900' 1.995" 4.408" Packer 6 ±10,905' 1.805" XN-Nipple LI 7 ±10,911' 1.995" XO 2-7/8"8RD x 2-3/8"8RD 3 8 ±10,912' 2.44" 4.750" Perforated Production Nipple(6'long) 7-5,8-Z .i 4 9 ±10,919' 2.44" 4.750" TCP Firing Head / 5 6 10 7 11 ±10,921' ±11,100' 1.995" 3.375" Tubing Conveyed Perforating Guns 8Cz-Z 4.408" Packer 9 12 ±11,109' 1.805" XN-Nipple(Plug set in nipple) 10 13 ±11,110' 1.995" XO 2-7/8"8RD x 2-3/8"8RD 'ms's' 11 ....1 12 14 ±11,112' 2.44" 4.750" Perforated Production Nipple(6'long) • 13 15 ±11,118' 2.44" 4.750" TCP Firing Head • 14 15 14-6/1 16 ±11,120' 3.375" Tubing Conveyed Perforating Guns 16 17 ±11,290' Bridge Plug(loft sand on top) lilf 17 PERFORATIONS Zone Top(MD) Btm(MD) Top(ND) Btm(TVD) SPF Length Date 1.4-1 o G2 ±10,921 ±10,965 . ±10,745' ±10,786' 1 May 2013 H6/7 ±11,120 ±11,151 ±10,933' ±10,962' 6 31' May 2013 H-10 ±11,315 ±11,348 ±11,117' ±11,148' 6 33' May 2013 5'' L PBTD=11,577'/PBTBD=11,367' TO=11,710'/TVD=11,494' Updated by DMA 04-30-13 S/C&L 24 -1S P• zr30,77o Regg, James B (DOA) From: Rance Pederson - (C) [rpederson@hilcorp.com] Sent: Thursday, March 21, 2013 6:34 PM j�3/1,14/3 To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L(DOA) l Cc: Paul Mazzolini; Luke Keller Subject: BOPE Test Report Doyon 1 SRU 24-15 Attachments: Doyon 1 03-21-13.xls; Doyon 1 03-21-13 Initial BOP Test Charts.pdf Rance Pederson Drilling Foreman Swanson River 907-776-6776 1 STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION BOPE Test Report 2, 3/14 3 Submit to: iim.reggCa�alaska.gov AOGCC.I nspectorsna"alaska.gov phoebe.brooks aC�.alaska.gov Contractor: Doyon Rig No.: 1 DATE: 3/21/13 Rig Rep.: Hermann/Haberthur Rig Phone: 907-776-6728 Rig Fax: Operator: Hilcorp Alaska, LLC Op. Phone: 907-776-6776 Op. Fax: Rep.: Pederson/Grubb E-Mail rederson@hilcorp.com Well Name: SRU 24-15 - PTD# 2130070 - Operation: Drlg: X Workover: Explor.: Test: Initial: X Weekly: .Bi-Weekly Test Pressure: Rams: 250/4000 Annular: 250/2500 - Valves: 250/4000 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P ' Well Sign P Upper Kelly 1 P - Housekeeping: P Drl. Rig P - Lower Kelly 1 P PTD On Location P •Hazard Sec. P Ball Type 1 P - Standing Order Posted P - Misc NA Inside BOP 1 P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 11" P Pit Level Indicators P P #1 Rams 1 2 7/8"x 5" P Flow Indicator P P #2 Rams 1 11" Blind P Meth Gas Detector P P #3 Rams 1 5" P - H2S Gas Detector P P #4 Rams 0 NA MS Misc 0 NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 3 1/8" P Inside Reel valves 0 NA HCR Valves 2 3 1/8" P Kill Line Valves 2 3 1/8" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 1 Flange FP s Time/Pressure Test Result System Pressure 2950 P CHOKE MANIFOLD: Pressure After Closure 2025 P Quantity Test Result 200 psi Attained 11 P No. Valves 15 FP Full Pressure Attained 65 P Manual Chokes 1 P Blind Switch Covers: All stations Yes Hydraulic Chokes 1 P Nitgn. Bottles (avg): 6 @ 23.00 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 2 Test Time: 10.0 Hours Repair or replacement of equipment will be made within days. Notify the AOGCC of repairs with written confirmation to:AOGCC.Inspectors @alaska.gov Remarks: Tested with 5"test joint at 250 low, 4000 high psi, 250 low, 2500 high on annular. Held 10 minutes each test. Tested H2S and LEL gas alarms. #5 choke valve failed initial test, greased cycled and retested for F/P. Chokeline flange failed initial test, retightened and retested for F/P. 24 HOUR NOTICE GIVEN YES X NO Waived By Jim Regg Date 3/19/13 - Time 05:35 - Witness Test start 02:00 Finish 12:00 - Form 10-424 (Revised 03/2013) 2013-0321_BOP_Doyonl_SRU_24-15.xlsx . 1 50 — -7- ■ h0 /� — - ---4500 --_�`j `� 4000 .E -----! ‘'o f / —3500 - ` � SN\ \ / i� /' _—-30 - �� �- - t ' � / Z �, h j w w y / j/ S� �\ \ f, j j j o0 �� t . ,.. / • / ' # ' ,./ - „..----- \ --4 c:),. — --- -4-,:---....„, '''', _„/ --\\ \ N \ \\:. ',,, 50 t , . j,. }I �. " ' ,CHART NO. MC 1 .+� 1 . l". r!ETF4 ,s.- emu+ ' , 1 -, - � � cr o 1 cn t o it 1 O O O' 4_.0 1 CHART awt1� I.� j 00 (. .O 0 ` �. Op . ' - M TAKEN OFF �,1i .- /�y4/ I / -1 1 +i I f .\ N \ - , O ` \LOCAT?O+. 5�'X -6 (I / 9 l. ' ` \ REMARKS 3-2-1-/7J / / 1 I i ;. .. . ,. ...\\,..,, . , '">.,./N...,, 2-',.... 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N.......N..N...,.',' . - „,....„.-..,•-,-,_-..-.._----.-__-__,_---'-,-7'-,_,,_-4,-, 4_-___-___ )-..4.---—plI 1/i_--o-.0t(-o-0o.s-0-c-z_—•-i:.,1.1„ 7V/7 y / / •, / „ / _ _, - , / • ---.H- --- _.---' 4,7 vz . -- , t. „._ .....„ N. -,_ _/, --- --- , ______ , —___________ 000P-4-- ------- ___>.„--. ---.7 -- ___ __...„- or .......• _....„ • . __-- --- - i oogr-----.-- _ ---- ..„-- ...._ _ ,_______ ________- - . 0, ------- ____ . —7— ___ --------os ... . ..._ 2 - . --------' Schwartz, Guy L (DOA) From: Rance Pederson - (C) <rpederson @hilcorp.com> Sent: Wednesday,April 24, 2013 3:31 PM To: Regg,James B (DOA); DOA AOGCC Prudhoe Bay;Schwartz, Guy L(DOA) Cc: BLM_AK_AKSO_EnergySection_Notifications @blm.gov;tzelenka @blm.gov; jtmiller @blm.gov; Paul Mazzolini; Luke Keller Subject: Upcoming 5" Liner Run and Cementing - SRU 24-15 - Doyon Rig 1 rio zip — 007- Gentlemen, SRU 24-15 6%" hole has been drilled to TD at 11,710'. E-Line logs were attempted with 3 runs planned. First run was unsuccessful as tool became non-functional at a depth of 9855' (293' below 7 5/8"shoe),second run was made with no calipers or radioactive sources to TD,but that tool became stuck at 11,345'while logging out of hole on 4-20-13. We successfully stripped over the e-line with 4"drill string and overshot,engaged the fish and recovered the entire 70' of logging tool assembly this afternoon.Any further open hole logging has been cancelled. We are currently starting our cleanout run to TD at 11,710',and should be ready to rig up for our 5" liner run at approximately 14:00 hrs on 4-25-13. We should be ready to cement 5" liner at approximately 12:30 PM on 4-26-13. Rance Pederson Hilcorp Drilling Foreman Swanson River 907-776-6776 1 1 Schwartz, Guy L (DOA) From: Luke Keller <Ikeller @hilcorp.com> Sent: Monday,April 22, 2013 2:31 PM To: Schwartz,Guy L(DOA) Cc: Paul Mazzolini; Rance Pederson - (C); Kate Kaufman Subject: RE:SRU 24-15 (PTD#:2.1*- 1)Operations Update -r3-an 7 re- 41.2`1•13 Guy, We are evaluating (2) possible options. 1. Possibly waiting until liner is set to obtain porosity/permeability data. 2. Obtaining porosity/permeability data via LWD. Right now just keeping fingers crossed that we have 100% recovery. Still headed in the hole with the overshot assy at 3700'. Luke Keller Drilling Engineer Hilcorp Alaska, LLC 907-777-8395 From: Schwartz, Guy L(DOA) [m ailto:guy,schwart.z,<7 alaska.gov] Sent: Monday, April 22, 2013 1:37 PM To: Luke Keller Cc: Paul Mazzolini; Rance Pederson - (C); Kate Kaufman Subject: RE: SRU 24-15 (PTD#: ) Operations Update 113-007 Thanks for update... are you considering TLC (drillpipe) conveying the tools.? Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Luke Keller [mailto ikelhraihiIcorp.com] Sent: Monday, April 22, 2013 12:19 PM To: Schwartz, Guy L(DOA) Cc: Paul Mazzolini; Rance Pederson - (C); Kate Kaufman Subject: SRU 24-15 (PTD#: 2 ) Operations Update a,3-00 Guy, To keep you updated regarding SRU 24-15: We attempted to log(wireline)the 6-3/4" production hole section over the weekend. The first logging attempt held up at 9,800' MD(7-5/8"shoe at 9,561'). We pulled tools back to surface, removed the source tools&caliper,TIH,and 1 successfully made it to bottom at 11,710' MD. While attempting to log OOH,the tool string became stuck at 11,385'and we were unable to free(suspected differentially stuck or possibly hung up in a washout). We are currently RIH w/an overshot and grapple on 4" DP,stripping over the wireline. Depth this morning was 1,600'. Given our current rate of progress,we expect to be engaging the fish sometime tomorrow afternoon. We will circ B/U prior to fish engagement to circ fresh 11.4 ppg mud into the well. We a r e st ill seeing slight fl ow from the w ate r sands strung out throughout the tyonek at around 0.5 to 1 bph. This rate has not changed much since we came off bottom with the drilling assy on 4/20. We are continuing to monitor the well closely at all times and have a detailed well control procedure in place for this fishing run should it be necessary. Let me know if you have any questions. Thanks, Luke Keller Drilling Engineer Hilcorp Alaska, LLC 907-777-8395 2 1r(_ Z4-r5 pr-6 Z130070 Regg, James B (DOA) From: Mike Leslie [gleslie@hilcorp.com] � ¢IIl Sent: Monday, April 15, 2013 4:08 PM 4 (' - To: Regg, James B (DOA); Miller, Justin Cc: Paul Mazzolini; Luke Keller; Rance Pederson - (C); Joe Grubb-(C); DOA AOGCC Prudhoe Bay Subject: RE: SRU 24-15 Mr. Regg, Regarding the failures of the past two BOP tests: The Upper Rams FP on 4-6 was due to the Wear Plate seal above the Ram. It was replaced with a new plate and seals and then successfully tested. The Upper Ram FP on 4-14 was due to the Mud Seal on the Door Bonnet. The Hydril Tech. was called down from Anchorage to assist with the changing of the seal. We told him that we had recently changed the Wear Plate, so he removed it for inspection and this is when he found an o-ring that was pinched. It wasn't the cause of any leak, but was a good catch by the Hydril Tech. He also measured the tolerances of the Ram Cavity and found them to be well within spec. The Manual valve on the Choke line passed the pressure test. It however was reported by one of the Roughnecks to be hard to operate. After operating the valve himself, the Tool Pusher instructed his Mechanic to remove the valve Bonnet for inspect, while the Hydril Tech was changing the Mud Seal and performing his inspection. The Mechanic found a small amount of ice in the valve and in the actuating stem. The valve was rebuilt with new seals and retested successfully. This Sub-structure is typically kept very warm, so the ice came as a surprise to all of us. We've talked to the crews about doing a better job keeping the doors to the Cellar closed and access holes sealed. The Flange FP between the Mud Cross and the Double Gate is the same Flange that leaked on the previous BOP test. It was again tightened and retested successfully. We plan to visually inspect this Ring Groove during the Nipple Down process at the end of the Well to see if there is any apparent damage, or debris that could be causing it to need retightening. The Upper Top Drive valve was successfully tested after cycling the valve during the test on 4-6, but failed to test on 4-14. This valve was replaced with Doyon's spare Top Drive Valve on 4-14 and successfully tested. The Tesco Top Drive valve is a uni-body style, so the Lower Ball Valve and the Upper Ball valve are in the same housing. Therefore both Upper and Lower valves had to be replaced and retested. The Doyon Tool Pusher is also inquiring about the purchase of another pair of these valves for future use. Hopefully I've answered you're your questions and satisfied your concerns regarding the past two tests. Please feel free to contact me if you'd like to discuss, or offer any suggestions. Regards, Mike Leslie Drilling Foreman Hilcorp Alaska gleslie @hilcorp.com Swanson River 907-776-6776 Original Message From: Regg, James B (DOA) [ma' o:iim.reggOalaska.gov] Sent: Monday, April 15, 20 1:59 PM To: Mike Leslie; Miller ustin 1 Regg, James B (DOA) From: Justin Miller[jtmiller @blm.gov] J i� 13 Sent: Monday, April 15, 2013 3:03 PM ' To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay Subject: Re: SRU 24-15 Thanks for pointing out the test from 4/6 Jim. I was out there on this test all weekend. They had a Hydril rep come down from Anchorage to inspect and repair the upper rams on Sunday. I witnessed his inspection and repairs and it seems an 0-ring they had replaced on 4/6 had rolled over its setting groove on the previous installation. I believe the ring held pressure enough to pass the first several tests but over the course of cycling pressure on the stack it slipped out enough to bleed. The choke side manual valve wasn't leaking as far as I was aware. They rebuilt it because it was more difficult to open and close than it should've been. More of a proactive repair than reactive in my opinion. I was present when the hand found this problem and I witnessed the repair by the mech. Sincerely, Justin T. Miller Petroleum Engineer BLM-Alaska State Office Jtmiller @blm.gov Connected by BlackBerry on GCI Original Message From: Regg, James B (DOA) [mailto:jim.regg@alaska.gov] Sent: Monday, April 15, 2013 02:59 PM To: Mike Leslie <gleslie @hilcorp.com>; Miller, Justin < 'tm' ler,blm.:ov> Cc: Paul Mazzolini <pmazzolini @hilcorp.com>; Luke Keller <lkeller @hilcorp.com>; Rance Pederson - (C) <rpederson @hilcorp.com>; Joe Grubb - ( <jgrubb @hilcorp.com>; DOA AOGCC Prudhoe Bay <doa.aogcc.prudhoe.bay @alaska.gov> Subject: RE: SRU 24-15 Test results show 4 repeat failures from 4/6 :APE test witnessed by AOGCC (report attached FYI) : 1) Upper Pipe Ram (VBRs); replaced wear elate and 0-rings 4/6; replaced 0-rings and mud seal 4/14 2) Manual Choke Valve - rebuilt 4/14 3) Flange Leak - flange between Do •le gate and mud cross; tighten to get passing test 4) Upper TD Valve - replaced 4/14 Repeat failures indicate pot- tially more serious problems than the repairs that enabled passing tests on 4/6. In p. ticular, the leaking flange between the double gate and mud cross appears to require more ' an tightening. What is Hilcorp's plan for addressing the UPR and Flange repeat failures? Jim Regg AOGCC 333 W. 7th Ave, Suite 100 1 S,e.( zc--15 ii Zt300-70 Regg, James B (DOA) From: Regg, James B (DOA) 4d1S I(3 Sent: Monday, April 15, 2013 1:59 PM To: Mike Leslie; Miller, Justin Cc: Paul Mazzolini; Luke Keller; Rance Pederson -(C); Joe Grubb- (C); DOA AOGCC Prudhoe Bay Subject: RE: SRU 24-15 Attachments: 201 3-0406_BOP_Doyon 1_SR U_24-15 jt.pdf Test results show 4 repeat failures from 4/6 BOPE test witnessed by AOGCC (report attached FYI): 1) Upper Pipe Ram (VBRs); replaced wear plate and 0-rings 4/6; replaced 0-rings and mud seal 4/14 2) Manual Choke Valve - rebuilt 4/14 3) Flange Leak - flange between Double gate and mud cross; tighten to get passing test 4) Upper TD Valve - replaced 4/14 Repeat failures indicate potentially more serious problems than the repairs that enabled passing tests on 4/6. In particular, the leaking flange between the double gate and mud cross appears to require more than tightening. What is Hilcorp's plan for addressing the UPR and Flange repeat failures? Jim Regg AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907-793-1236 Original Message From: Mike Leslie [mailto:glesliePhilcorp.com] Sent: Monday, April 15, 2013 5:36 AM To: BLM AK AKSO EnergySection NotificationsOblm.gov; Brooks, Phoebe L (DOA); DOA AOGCC Prudhoe Bay; Regg, James B (DOA) Cc: Paul Mazzolini; Luke Keller; Rance Pederson - (C); Joe Grubb - (C) Subject: SRU 24-15 Your message is ready to be sent with the following file or link attachments: Doyon 1, 04-14-13.xls Note: To protect against computer viruses, e-mail programs may prevent sending or receiving certain types of file attachments. Check your e-mail security settings to determine how attachments are handled. 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Tuesday,April 16, 2013 8:52 AM To: 'Luke Keller' Cc: Mike Leslie; Paul Mazzolini Subject RE:SRU 24-15 TOC Update(PTD#:213-007) Luke, Thanks for update... no issues with cement from regulatory side. Good luck with the rest of the well. Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-7934226 office From: Luke Keller [mail_: lkellen9Thiicu p.com] Sent:Tuesday, April 16, 2013 8:34 AM To: Schwartz, Guy L(DOA) Cc: Mike Leslie; Paul Mazzolini Subject: SRU 24-15 TOC Update(PTD#:213-007) Guy, A temperature survey was run on SRU 24-15 over the weekend. Estimated TOC is at 6030' MD(7-5/8"shoe at 9561' MD). Not bad considering the losses that plagued this hole section. As of now,we do not plan on taking any remedial action to bring TOC higher. We have checked the 7-5/8"x 10-3/4" annulus and it appears to be on a slight vacuum. The shallowest potential gas sand was observed at-7100' MD(which was also the loss zone). Everything above is either wet or a coal. Currently,we are drilling ahead in the 6-3/4" hole section at 9,700' MD with a 10.6 ppg MW. Casing test to 3000 psi/30 min was successful. FIT to 13.5 ppg was also successful. Please give me a call if you would like to discuss. Thanks, Luke Keller Drilling Engineer Hilcorp Alaska, LLC 907-777-8395 1 V Or rod ,;(9,‘",1/// ,/ mss?, THE STATE Alaska Oil and Gas _= ALASKA Conservation Commission , GOVERNOR SEAN PARNELL 333 West Seventh Avenue CF Anchorage, Alaska 99501-3572 ALAS" Main: 907.279.1433 Fax: 907.276.7542 Paul Mazzolini O © Drilling Manager a13 -- Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Re: Swanson River Field, Hemlock Oil Pool, SRU 24-15 Sundry Number: 313-175 Dear Mr. Mazzolini: 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 Commission grants for good cause shown, a person affected by it may file with the Commission 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, Cathy . Foerster Chair DATED this I day of April, 2013. Encl. 44 l "s ; STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION I ' APPLICATION FOR SUNDRY APPROVALS ("4-1 20 AAC 25.280 1.Type of Request: Abandon❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Wel❑ Change Approved Program IO' Suspend❑ Plug Perforations❑ Perforate❑ Pull Tubin] Time Extension❑ Operations Shutdown❑ Re-enter Susp.Well ❑ Stimulate❑ Alter Casincn Other. Complete ❑ 2.Operator Name: r. Hilcorp Alaska,LLC 4.Current Well Class: 5.Permit to Drill Number • Exploratory ❑ Development 0 213-007 • 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic ❑ Service ❑ 6.API Number. Anchorage,Alaska 99503 50-133-20609-00, 7.If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? CO 123A Swanson River Unit(SRU)24-15 Will planned perforations require a spacing exception? Yes ❑ No 0 . 9.Property Designation(Lease Number): 10.Field/Pool(s): A028384,A028406 : Swanson River Field/Hemlock Oil Pod , 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): 'Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): N/A N/A N/A N/A N/A N/A Casing Length Size MD TVD Burst Collapse ! Conductor 80' 16" 80 80' EStructural Surface 3,000' 10-3/4" 3,000' 3,000' 1,040psi 2,480psi Intermediate 2,575' 7-5/8" 9,575' 9,570' 6,890psi 4,790psi Production Liner 2,335' t 5" 11,710' 11,423' 8,290psi 7,250psi Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): j N/A N/A 3-1/2" 9.21#/L-80 IBT 9,500' rl'ackers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): . N/A and N/A N/A and N/A 12.Attachments: Description Summary of Proposal 19 13.Well Class after proposed work: Detailed Operations Program n BOP Sketch n Exploratory ❑ Stratigraphicri Development n Service n 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: N/A Oil 12 Gas ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: ' _.6,1 3 WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: � 4 GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is trtle and correct to the best of my knowledge. Contact Paul Mazzolini Phone: 907-777-8369 Email pmazzolink hilcorD.corn Printed Name Paul Mazzolini Title Drilling Manager y _ignature j-U--e/� G�2,,�p_ - Phone 907-777-8369 Date 4/8/2013 r JJJ COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number. 51 5 -L?6 Plug Integrity ❑ BOP Test Q( Mechanical Integrity Test ❑ Location Clearance ❑ Other: RM! S APR 1 2 201 • ;pacing Exception Required? Yes ❑ No [/r` Subsequent Form Required: /6 - 4-(D 7 /(S�'••4� � " THPROVED BY 90444_, Approved by P COMMISSIONER THE COMMISSION Date:/..,-l/_i_..3 /! Submit Form and Q9 i Approved application is valid for 12 months from the date of approval. Ae 1 c3ict L f 4.iv• 4 . ... Modifications to SRU 24-15 Approved Permit to Drill due to setting 7 5/8" Intermediate Casing Early Rationale to set Intermediate Casing Early: Significant lost circulation events drilling intermediate hole section down to 9576'MD. Casing shoe is located in a siltstone section of the Tyonek and will provide good integrity for the FIT. Mud Weight of 12.7 ppg is required to overbalance gas bearing formations. ./ Uncertainty of encountering the high pressure Tyonek water zone which could cause cross flow issues between zones&complicate control of lost circulation events. cu> 1.'. " 'Mx'," '`'6' TO 4 r,"u0 1a,e,,...#. "if 7.9,g")A,, Changes to APD for which Hilcorp Alaska is requesting approval: . a . • i,4,it , }�®r.+ cif'a-0%. P• V. . 7 5/8" intermediate casing with shoe at 9576'MD / ,® .f$ Lead cement volume= 313.5 bbls(313.5 bbls in APD), keep same volume with 930' less 7 5/8" casing run equals 80%excess vs. 50%from initial design. Chemical additives for G'"4 cement slurry will not change. Cem Net will be added to inhibit losses to low pressure zones. Cem Net will also be added to the tail slurry. Mud weight for drill out of the 7 5/8" casing and 6 3/4" production hole section will be 10.5 ppg until the lower section of the Tyonek, where the high pressure sand could be encountered. As hole conditions dictate the mud weight will be increased to 12.5 ppg to hold back the water flow or if not encountered the mud weight will be decreased to xoat .d ar$11t between 9.5–10.0 ppg to drill the Hemlock Formation. 4/ �(�ttctelitc.J $ .0'' /2.'r n 1,, .. r (<(The FIT upon drilling 20' of new hole below the 7 5/8" casing shoe will be to 13.0 ppg C ,w z ,5 ,.EMW to allow a .5 ppg safety margin to the high pressure water flow of 12.5 ppg. ,47i via13 F .� is Due to deeper pay being encountered in the Hemlock in Well SRU 13-27, Hilcorp is �� �t' ""� p pY � g p -o //,7/a,NI) .requesting to deepen TD to 11,710'MD(11,458'TVD). This lower section of the 4 /ç,' Tf/a , Hemlock was drilled with 9.7 ppg mud in Well SRU 13-27 and no issues were /'A/ ,p.(3 encountered. —`� / { o�� N A r�'Tb sic el-044 T r?/�'P. 1 e e-... 1/6 NAG y. Spa .nu : Cp. 3v� iSr7 '-/D°t3 The longer and deeper 5''production iner will require additional cement volume but the thickening times and pumping times of the present slurry will work well. The revised volume is calculated with 100%excess=98 bbls vs.original APD volume of 60.6 bbls,. A 1 II Swanson River Unit Well SRU 24-15 Planned Planned WBD rev1 Hilcorp Alaska,LLC Casing & Tubing Size _ Type Wt Grade Conn. ID Top Btm JI 6 Conductor- , 16" !J 16" Driven to Set 109 X-56 Weld 15" Surf 80' Depth „ 2 1k i 10-3/4" Surf.Csg 45.5 L-80 Buttress 9.875" Surf 3,000' 29.7 L-80 BTC 6.75" Surf 7000' 7-5/8" Intermediate P-110 3 .1. IPOs 29.7 BTC 6.75" 7,000' 9570'IIP 10-3/4" Nei HC 5" Prod Lnr 15 L-80 D HT/C 4.283" 9370' 11,710' r 4 mis ■ r++ Tubing 3-1/2" Production 9.2 L-80 IBT IBT 2.441 Surf 9500' t 5 1111 i :: JEWELRY DETAIL No. Depth ID OD Item 6 111111 i '^ 1 20' 2.44" - Tubing Hanger 'r 2 1,300' 2.44" 4.750" 3-1/2"SFO-1 Mandrel 8RD 12 port 7 ;B , 1 3 2,400' 2.44" 4.750" 3-1/2"SFO-1 Mandrel 8RD 12 port 4 3,500' 2.44" 4.750" 3-1/2"SFO-1 Mandrel 8RD 12 port 1 5 4,600' 2.44" 4.750" 3-1/2"SFO-1 Mandrel 8RD 12 port 8 int i 6 5,200' 2.44" 4.750" 3-1/2"SFO 1 Mandrel 8RD 12 port 7 6,200' 2.44" 4.750" 3-1/2"SFO-1 Mandrel 8RD 12 port 9 RE i 8 6,900' 2.44" 4.750" 3-1/2"SF0-1 Mandrel 8RD 12 port • t0 7 9 7,900' 2.44" 4.750" 3-1/2"SFO-1 Mandrel 8RD 12 port 1N ` 10 9460' 2.000" 6.5" On/Off Tool w/X Nipple I l 11 9480' 1.978" 4.140" Arrowset Mechanical Packer 11 II 12 9500' - - WL Entry Guide w/X Nipple 7-5/8" Aj 12 5" L TD=11,710/TVD=11,458' Updated by PM 04/08/13 Schwartz, Guy L (DOA) From: Paul Mazzolini <pmazzolini @hilcorp.com> / 12-7) Sent: Saturday, April 06, 2013 3:51 PM To: Schwartz, Guy L (DOA) SR(.t.Z '{ t.- Cc: Luke Keller; Mike Leslie;Jimmy Greco - (C);John Barnes; Luke Saugier; Kevin Eastham; Chad Helgeson Subject: RE: Notification to Set Intermediate Casing Early Guy, Thank you for the response. I will keep you informed as operations progress and will contact you Monday to review path forward for building the Change of Operations Sundry. Regards Paul From: Schwartz, Guy L (DOA) [mailto:guy.schwartz @alaska.go ] Sent: Saturday, April 06, 2013 6:18 PM To: Paul Mazzolini Cc: Luke Keller; Mike Leslie; Jimmy Greco - (C); John Barnes; Luke Saugier; Kevin Eastham; Chad Helgeson Subject: Re: Notification to Set Intermediate Casing Early Paul, As we discussed your proposal to set 7 5/8" casing higher(1000 ft above permitted) is approved verbally. Will need to fully review all changes and risk factors before drilling out casing shoe to finish well to TD. Contact me Monday morning to detail out the "change of operation " sundry that you will be submitting. If the situation changes call me immediately. Guy Schwartz AOGCC Sent from my iPhone On Apr 6, 2013,at 12:36 PM, "Paul Mazzolini"<pmazzolini @hilcorp.cr >wrote: Guy, Thank you for your time to discuss the lost circulation issues Hilcorp is working through on Well SRU 24-15. To recap events, 9 7/8" hole has been drilled to 9576'MD. Lost circulation has occurred both shallow in Sterling, over 800 bbls lost and in the Tyonek, over 600 bbls lost.At times loss rates have exceed 20 bbls/min. Multiple LCM pills with up to 60 lbs/.bbl LCM have been pumped with varying degrees of success.Average loss rates have been about 10 bbbls/hr with present mud weight of 12.6 ppg which is needed to control gas sands in the Tyonek section. Fluid losses of about 5 bbls/hr were achieved by pumping LCM pills to allow the rig to trip out of the hole for AOGCC witnessed BOP test on 4/5. Presently they are finishing up the BOP test with fluid losses at 2 bbls/hr and a mud weight of 12.6 ppg. 1 To mitigate any issues that would be caused by drilling into a possible Tyonek high pressure water zone Hilcorp would like to notify the AOGCC of setting 7 5/8" intermediate casing early at 9576'MD vs. permitted depth of 10,500'MD. A clean out trip is planned to TD. E line logs will be attempted with two runs planned. The first run will be without radioactive source in case of hole issues. If that run is successful then a second with the radioactive source tolls will be made. A Sundry Notice will be prepared and submitted to the AOGCC on Monday,4/8/13 to request approval for the plan forward once the 7 5/8" intermediate casing has been run and cemented. The plan forward once the 7 5/8"casing is set as we briefly discussed: Drill out shoe track&20' new hole. Perform FIT to 13 ppg EMW with 10.5 ppg mud. Lost circulation zones are not anticipated below the 7 5/8"casing shoe. Finish drilling Tyonek with 10.5 ppg mud monitoring for signs of high pressure water zone (chloride conc)&background/connection gas. Increase mud weight as required for water&gas zones. Continue drilling 6%"directional hole through Hemlock section to permitted TD of 11,710'MD. I am available on my cell at 907-317-1275 with any questions and will inform you of any issues encountered this weekend. I will contact you on Monday morning to discuss the required information for our Sundry Notice to AOGCC. Regards Paul 2 Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Tuesday, March 19, 2013 9:09 AM To: 'Luke Keller';Zelenka,Thomas J; Miller,Justin T Cc: Paul Mazzolini; Mike Leslie;Rance Pederson - (C);Joe Grubb - (C);Jimmy Greco - (C); Kate Kaufman Subject: RE: SRU 24-15 (PTD:213-007) Surface Casing Cement Volumes Luke, The change to surface cement volume to 30%excess is approved. As this is based on carbide tag data the change is prudent and should reduce waste. Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Luke Keller [rnailto:lkeller j h icorpcorn] Sent:Tuesday, March 19, 2013 8:42 AM To: Schwartz, Guy L(DOA); Zelenka,Thomas 3; Miller, Justin T Cc: Paul Mazzolini; Mike Leslie; Rance Pederson - (C); Joe Grubb - (C); Jimmy Greco- (C); Kate Kaufman Subject: SRU 24-15 (PTD: 213-007) Surface Casing Cement Volumes Guy/Tom/Justin, We will be conducting our surface cement job on SRU 24-15 later today. Before our last trip out of the hole this morning,we pumped a couple sweeps and a carbide lag to determine actual hole volume. All indications were that the hole is in gauge to 3030' MD. The surface cement job on SRU 13-27 was pumped at 50%over gauge hole,and we ended up with 159 bbls cmt to surface. This amount of cement to surface is a huge burden on our waste disposal resources at Swanson River. For the SRU 24-15 surface casing cement job,we will reduce the designed amount to 30%over gauge hole. We fully expect to circulate approx 80 bbls to surface using these calculations. Revised calculations are attached below: Section: Calculation: Vol (BBLS) LEAD: 16" Conductor x 10-3/4" 80' x .106 bpf= 8.5 casing annulus: LEAD: 13-1/2" OH x 10-3/4"Casing (2500' —80')x .065 bpf x 1.3 = 205 annulus: Total LEAD: 213.5 TAIL: 13-1/2"OH x 10-3/4" Casing (3020'-2500')x .065 bpf x 1.3 = 45 annulus: 1 1 f' TAIL: 10-3/4" Shoe track: 90 x .096 bpf = 8.7 Total TAIL: 54 Let me know if any of you have an issue with this change to the approved drilling program. Luke Keller Drilling Engineer Hilcorp Alaska, LLC 907-777-8395 2 oF 4. THE STATE Alaska 011 and Gas ofALAsKA Conservatien Commission GOVERNOR SEAN PARNELL 333 West Seventh Avenue F* Anchorage, Alaska 99501-3572 ALAS1 Main: 907.279.1433 Fax: 907.276.7542 Luke Keller Drilling Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive Anchorage, AK 99524 Re: Swanson River Field, Hemlock Oil Pool, Swanson River Unit 24-15 Hilcorp Alaska, LLC Permit No: 213-007 Surface Location: 881' FSL, 2370' FEL, SEC. 15, T8N, R9W, SM Bottomhole Location: 765' FSL, 1490' FWL, SEC. 15, T8N, R9W, SM Dear Mr. Keller: Enclosed is the approved application for permit to drill the above referenced development well. Hilcorp Alaska, LLC (Hilcorp)'s request to have the diverter system waived for the 13.5" surface hole section is DENIED. Hilcorp is required to use a diverter system as outlined by 20 AAC 25.035(c). Hilcorp's drilling rig Artic Fox has a 12" diverter system. Variance for using a 12" diverter line is APPROVED per 20 AAC 25.035(c) (1)(B) . The surface hole section (0 -3000 ft) will be drilled with a 13.5" OD bit. Past drilling experience in the area indicates that a pilot hole is not required. 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 Commission 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 Commission 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 a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Cathy P Foerster Chair DATED this, of February, 2013. cc: Department of Fish&Game, Habitat Section w/o encl. (via e-mail) Department of Environmental Conservation w/o encl. (via e-mail) STATE OF ALASKA AL A OIL AND GAS CONSERVATION COMM )N PERMIT TO DRILL 20 AAC 25.005 i v ') la.Type of Work: lb.Proposed Well Class: Development-Oil 0 • Service- Winj ❑ Single Zone [1 ' lc Specify if well is proposed for: 1 Drill El - Lateral ❑ Stratigraphic Test ❑ Development-Gas❑ Service-Supply ❑ Multiple Zone [, i• Coalbed Gas ❑ Gas Hydrates ❑ Redril❑ Reentry ❑ Exploratory ❑ Service- WAG ❑ Service-Disp ❑ Geothermal ❑ Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket is Single Well ❑ 11.Well Name and Number: Hilcorp Alaska,LLC Bond No.452-2-4'37Z 'Y. Swanson River Unit 24-15 , 3.Address: 6.Proposed Depth: / i•2-3 .13 12.Field/Pool(s): 3800 Centerpoint Drive,Anchorage,AK 99524 MD: 11,710' TVD: 11,458' Swanson River Field/ 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): Hemlock Oil Pool - Surface: 881'FSL,2370'FEL,Sec 15,T8N,R9W,SM • A02-t5 7 A028406 r 23 i 5 Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: 786'FSL,1763'FWL,Sec 15,T8N,R9W,SM N/A March 17th,2013 Total Depth: 9.Acres in Property: 14.Distance to Nearest Property: 765'FSL,1490'FWL,Sec 15,T8N,R9W,SM 2,560 acres 2,350 ft • 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL: . 307.5 feet 15.Distance to Nearest Well Open Surface: x-350734• y-2477838 • Zone-4 GL Elevation above MSL: •288.9 feet to Same Pool: 1,300 ft(SRU 23-15) 16.Deviated wells: Kickoff depth: 7600 feet 17.Maximum Anticipated Pressures in psig(see 20 AAC 25.035) i Maximum Hole Angle: 22.2 degrees Downhole: 3186 psi '' '7 (Surface: 2040 psi 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) Conductor 16" 109 X-56 Weld 80 0 0 80 80 None 13-1/2" 10-3/4" 45.5 L-80 BTC 3000 0 0 3000 3000 323bb1 @ 12 ppg,73.7 bbl @ 15.4 9-7/8" 7-5/8" 29.7 L-80 BTC 7000 0 0 7000 6998 9-7/8" 7-5/8" 29.7 P-110 HC BTC 3500 7000 6998 10500 10354 313bb1 @14 ppg,70 bbl @ 15.3ppg 6-3/4" 5" 15 L-80 DWC/C HT 1800 10300 10150 11458 10150 60.6 bbls,15.3ppg Class"G" 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): Casing Length Size Cement Volume MD TVD Conductor/Structural RECEIVED Surface Intermediate Production JAN 15 2013 Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): AOGGC 20. Attachments: Property Plat si BOP Sketch J Drilling Program isi Time v.Depth Plot 151 Shallow Hazard Analysis❑ Diverter Sketch❑ Seabed Report ❑ Drilling Fluid Program 19 20 AAC 25.050 requirements IN 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Email Printed Name Luke Keller Title Drilling Engineer Signature 907-777-8395 Date 1/9/2013 // / // Phone Commission Use Only Permit to Drill , API Number: ' �p� Permit Approval n See cover letter for other Number: L(3 �J7 50-/g'S Z �l'-Cx2"•l. Date: '2f i 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: [+k' Other: 4 zi�U S` 80 p f- Samples req'd: Yes❑ Nod Mud log req'd:Yes❑ No H2S measures: Yes❑ No Directional svy req'd:Yes W No❑ -1' Z.5C:6 FS 4 kin.24e-t._ -1:07; f-Spacing exception req'd: Yes❑ NN/o 12/ Inclination-only svy req'd:Yes❑ No E o r / APPROVED BY /7- r / Approved by:��! .9:),e_____77 L -- COMMISSIONER THE COMMISSION Date: ` - Rib a ' A- y' - ( 3 Submit Form and �( 0 f �1r�sad/o`) This permit is valid for months from the date of approval(20 AAC 25.005(9))l A gtta hments in Duplicate ')� .t vv 2 v'a Hilcorp Paul Mazzolini Hilcorp Alaska, LLC Ener117 Cm Drilling Manager P.O. Box 244027 Anchorage,AK 99524-4027 Tel 907 777 8369 1/14/2013 Email pmazzolini @hilcorp.com Commissioner Alaska Oil &Gas Conservation Commission 333 W. 7th Avenue RECEIVED Anchorage, Alaska 99501 JAN 15 2013 Re: Swanson River Unit 24-15 AOGCC Dear Commissioner, Enclosed for review and approval is the application for the Permit to Drill the Swanson River Unit 24- 15. SRU 24-15 is a grass roots Hemlock development oil well planned to be re-drilled in a West direction from the existing SRU 234-15 pad. SRU 234-15 has been permanently plugged and abandoned. . Drilling operations will be conducted by the Doyon Arctic Fox. The Arctic Fox is a 400 kip, multi- module drilling unit with a telescoping doubles mast. Drilling operations are expected to commence approximately March 17th, 2013 depending on the progress of other ongoing projects and the availability of Doyon's Arctic Fox. A diverter waiver request is also attached pursuant to 20 AAC 25.035(h). Pursuant to 20 AAC 25.055(a)(3), a spacing exception is NOT required: 1. SRU 24-15 does not fall within 500 ft of a property line where ownership or landownership f changes. 2. It is not a gas well. 3. SRU 24-15 is the second well to be completed in the SW quarter section of section 15. Pursuant to 20 AAC 25.005(c) &(d), the following is included: 1. Plat identifying the property on which the well will be drilled. 2. Diagram &description of blowout prevention equipment. 3. Information on drilling hazards. a. MASP calculations are attached per 20 AAC 25.005(c)(4)(A) b. Potential target reservoirs and their predicted pore pressures are indicated in attached Drilling Program 4. Formation integrity test procedure. 5. Planned casing&cement program (Drilling Program) 6. Drilling fluid program(Drilling Program) 7. Tabulation of predicted depths with equivalent formation pressures. 8. Requirements of 20 MC 25.025 have been met. a. Blanket bond issued for Swanson River, bond no.AA093159 9. Copy of Drilling Program is attached. 10. General description of waste disposal. Operator does not wish to request authorization under 20 AAC 25.080 for an annular disposal operation in the well. Hilcorp Alaska, LLC Page 1 of 2 a. Drilling waste (cuttings and water based drilling fluids) will be injected into disposal well SCU 43-04 WD. 11. Requirements of 20 MC 25.050(b) have been met. a. Plat showing path of proposed wellbore including all adjacent wellbores within 200' is attached. b. All wellbores within 200'of proposed wellbore are owned by Hilcorp. If you have any questions, please don't hesitate to contact myself at 777-8369 or Luke Keller at 777- 8395. Sincerely, ?ctx Paul Mazzolini Drilling Manager Hilcorp Alaska, LLC Page 2 of 2 Swanson River Well SRU 24-15 Hilcorp Diverter Waiver Request snow cowpony SRU 24-15 Diverter Waiver Request Hilcorp respectfully requests a waiver to: (1) AOGCC regulations 20 AAC 25.035 (c) Hilcorp requests permission to drill the 13-1/2" surface hole to a depth of 3000' MD — / 2998' TVD without the use of a diverter. AOGCC regulation 20 AAC 25.035 (h) (2) stipulates: (h) "Upon request of the operator, the commission will, in its discretion, approve a variance (2) from the diverter system requirements in (c) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary." Based on drilling experience obtained by previous operators of the field, it is conclusive that no shallow gas hazards exist beneath this pad to a depth of 3000' where surface casing is planned. The logs from the existing well drilled from the same pad (SRU 234-15) clearly show that not even the normally pressured Sterling V A exists this far to the South East. Geology: Shallow geology has been reviewed and the following summary of the lithology to be encountered is provided below: Surface - 500': Interbedded med to coarse grained sand and coarse gravels. 500- 1000': Interbedded 75% - 25% fine to medium grained unconsolidated sandstone with claystone, clay siltstone and carbonaceous mudstones. 1000- 1600': Interbedded 60- 40% fine to medium grained sandstones, with claystone, siltstone, clay sandstone and carbonaceous mudstones. 1600-3000': Interbedded 75% - 25% fine to medium grained unconsolidated sandstone with claystone, clay siltstone and carbonaceous mudstones. Hilcorp is not aware of any significant faulting, nor do we expect any oil or gas to be trapped, as no suitable seals exist with this shallow section 1/14/2013 Page 1 of 4 Swanson River Well SRU 24-15 HilCOlp Diverter Waiver Request Emily Comm! Experience in the near vicinity: SRU 14B-27 • Date: 12-9-2012 • MW Utilzed: 10.5 ppg • Distance and direction from SRU 24-15: 2.4 miles South • 13-1/2" surface hole section was drilled to a depth of 2980' MD / 2978' TVD and run (and cemented) the 10-3/4" surface casing with the shoe at 2960' MD / 2958' TVD. Surface casing cemented to surface.°There were no indications of shallow gas or shallow gas potential. SRU 241-16 • Date: 5-29-04 • MW Utilized: 9 - 9.2 ppg • Distance and direction from SRU 24-15: 2997' NW • Drilled 12-1/4" surface hole to 1560' w/ 9 ppg. No indications of shallow gas. A diverter was not utilized to drill this hole section. Surface casing - cemented to surface. Drilled 8-1/2" hole to 4818' MD / 3539' TVD with 9.2 ppg. No issues noted. SRU 242-16 • Date: 8-18-89 • MW Utilized: 9.2- 9.5 ppg • Distance and direction from SRU 24-15: 2882' NW • Drilled 12-1/4" surface hole to 2346' MD w/ 9.2 ppg. No indications of shallow gas. • Drilled 8-1/2" hole to 4860' MD / 4022' w/ 9.5 ppg with no issues noted. Surface casing cemented to surface. SRU 234-15 • Date: 6-21-61 • MW Utilized: 10.2 ppg • Distance and direction from SRU 24-15: 37' North • Drilled 17-1/2" surface hole to 301 1 ' MD w/ 10.2 ppg. No indications of / shallow gas. This well is on same pad as SRU 24-15. • Surface casing cemented to surface. 1/14/2013 Page 2 of 4 Swanson River Well SRU 24-15 Hilcorp Diverter Waiver Request Buggy c.pm SRU 43-15 • Date: 7-16-61 • MW Utilized: 10.2- 10.3 ppg • Distance and direction from SRU 24-15: 2075' NE • Drilled 17-1/2" hole to 3030'. No indications of shallow gas noted. • Surface casing cemented to surface. SRU 23-15 • Date: 2-15-61 • MW Utilized: 10.2- 10.4 ppg • Distance and direction from SRU 24-15: 1614' NW • Drilled 17-1/2" hole to 2993'. No indications of shallow gas noted. - • Surface casing cemented to surface. SRU 21-22 • Date: 11-14-61 • MW Utilized: 10.2- 10.7 ppg • Distance and direction from SRU 24-15: 1730' SW • Drilled 17-1/2" hole to 3030'. No indications of shallow gas noted. • Surface casing cemented to surface. Possibility of Shallow Zone charge up: There have been no incidents of surface casing leaks of any adjacent wellbores, nor is there any formation with closure that would trap an accumulation of gas f down to 3000'. The only shallow gas formation in the field is to the NW of this pad (Sterling). A summary of this productive interval is attached. 1/14/2013 Page 3 of 4 fl Swanson River Well SRU 24-15 Hilcorp Diverter Waiver Request Ernerf CumpaTy Swanson River Map Yellow shaded box denotes offset well locations 14111 : : • , . : r".1. 1 l• \\ : . .! .•. i 411;t4, 34-10: : , 7 . ..., . : ,-- r,„ ,5g-H---, 21-15 _____ 4111-6 ;• ■ 1'''-. eni ! \ g'-‘>,,..../..- ! .iiti : : ; ----Tank i i .4.-...,- : ::,-, :• . • : Setting : ,, / , . 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I CC cr) ti ees (\i- , X + 1 I— can )1,—' ,.r. if):\ , . 0 NIIII Z 2 "I Cr‘t. 4 gJ B9\ J 9992, 6gs2 ;�co w e9S2, N -2520 cn 2Ze- 0022 9 , E ea92` easz- 9992- e9S2_ N e&82_,292- 0e9e, % �.: 0992- 0982 2. egg �; ' OPIJI\ 2 9442. e,` ,, Surface Use Plan Swanson River Unit Well SRU 24-15 Surface Location Anticipated: 881' FSL, 2370' FEL, Sec 15, T8N, R9W, SM Existing Road: The proposed SRU 24-15 is within the unit boundaries of the Swanson River Field. The roads in the field are suitable for transportation of the drilling rig and support equipment. The road leading into Swanson Field is within the boundaries of the Kenai National Wildlife Refuge and is also suitable for rig transport. Sterling, Alaska is the nearest town to the site and is approximately 25 miles south of the well site. A map showing the location of the proposed well site and access route to the site is included in Figure 1. New or Constructed Access Roads: There will be no new roads or road upgrades required for the drilling of this well. Location of Existing Wells: SRU 24-15 will be drilled from the existing well pad SRU 234-15. A map showing all known wells within a one-mile radius of the proposed SRU 24-15 is included in Figure 2. Existing well SRU 234-15 on the pad is P&A'd. Location of Existing and/or Proposed Production Facilities: New well 24-15 will be connected to existing production facilities. Location and Types of Water Supply: Existing water sources in Swanson River Field will be utilized. Available sources include an Alaska Department of Natural Resources permitted water well at TS 1-33. All water use will be tracked in compliance with applicable permits. Water will be transported via vacuum truck from water wells to the rig location. Construction Materials: No road upgrades will be needed to allow for rig access. Stockpiled clean gravel picked up from roads within Swanson River Field will be used to level the pad if needed. Methods for Handling Waste: Drilling muds and cuttings: Excess mud and cuttings will be hauled from the rig pit system or storage tanks to a Grind and Inject facility at Swanson River Pad 243-04. Wastes will be disposed of in AOGCC approved well SCU 43-04 WD. An ADEC temporary waste storage permit is in effect for any interim drilling fluid storage in Swanson River. Brines& Completion Fluids: Eligible fluids will be hauled to a permitted Class II disposal well in Swanson River Field for disposal. Garbage: All household and approved industrial garbage will be segregated and transported to the Kenai Borough Central Peninsula Landfill for disposal. Chemicals: Unused chemicals will be returned to vendors or utilized in future operations. Sewage: All sanitary waste will be contained on-site and hauled off-site by a designated contractor. Ancillary Facilities: A trailer will be staged on the pad to house various supervisory personnel and a minimum number of support personnel. The remainder of the drilling crew will be housed at a temporary camp staged at nearby pad 221-27. Well Site Layout: Attached Figure 3 shows the existing pad, the access road to the location and the proposed well location. There will be no reserve pit on location. A plan view layout of the Doyon Arctic Fox is provided in Figure 4. Plans for Surface Reclamation: No surface disturbances are required for drilling this well. Access will be on existing roads within Swanson River Field, and the well will be drilled from an existing pad. No pad expansion will be required. Approval for final abandonment of the well and location will be obtained from the BLM and U.S. Fish and Wildlife Service prior to any reclamation work. Surface Ownership: The surface lands of the Swanson River Field and the roads leading into the field are within the Kenai National Wildlife Refuge, and are managed by the U.S. Fish and Wildlife Service. Other Information: The Doyon Arctic Fox rig will be used to drill the well. A plan view layout of the rig is provided in Figure 4. 1 6 5 4 / 3 2 ■ SRU 212 10 Pad z, 7 8 9 10 11 17 1st Ave SRU 1000 P::d SRU 3410 Pad 5 Pae SRU 21115Pa �"" SRU x11 1i y 2-15 TS Proposed Well ]RU 3215 Pa SRU 24-15 s c 15 SRU 2315 Pad 1 SRU 43-15 Pad SRU x34-15 Pad SRU 34-16 Pad 5Rd 21-22 Pad-► f SRU 32-22 Pad SRU x331 Pad SRU 22221 Pad SRU 412-22 Pad *yl S108NO1OW S008N009W j 21 22 23 21 19 20 1st Ave sau 14 22 Pad SRU 331-27 Patl`�-- SRU 41 28 Pad SRU 223-2e Pad SRU 21 27 Pad sau 12-27 Pad SRU 32-27 Pad 30 29 28 SRU 43 28 Pad 27 26 25 r sau 3428 Pad SL) i7SRU 4133 Pad SRU 2134 Pad SRU 2„3 Pads" o� "� ' \ SRU 32-]]Pad SRU 12 34 Patl \ -'4 31 32 33 34 's SRU 33 Sall 2333 Pad SCU 33-33 Pad 1st Ave 4.-'-'---.14'"P” SCU 1434 P. SCU 3433 Pad —� SCU2,d4Pa SCU 41-04Pad 4 U1143Pad scu 32.OS Pad 2nd Ave OFFICE OS Paa I SCU 12 e4 Pae-r, V5cu 1 6 5 cu.3.os Pad 4 sell 20-04 Pad[J cu/3 0,4 Pad 3 sell 2303 Pad (72 1 SCU 20-04 Pad - 34 SCU 34-04 Pad SCU 1401 Pad SCU sell 14-04 Pad SCU 41 08 Paa 1-97M Scu 3i-oa Rad ""SCU21"Oe"Pae'"" i...a SCUa109 Pad S St S007N009W SCU 32-6d Pad SCU 312-09 Pad SCU 32-o9 Pad _ SCU 23-09 Pad 1 CU i 8 SCU 243 0 Pad .4a oe P let Ave er Pae 11 12 9 A St SCU 1408 Pad` SCU 34os Pad SCU 3408 Pad -). MIN GTE SCU 12.16 Paa t'scu x1.16 Pad �"'�� - II 17 16 15 14 13 Ill Swanson River Field Map Scale 1.32,000 Figure 1 Alaska State Plane 4 NAD 1927 2 1II,,,,,,u,-k,,. ., Miles :3rEfE�fCFed • • MAT al.,5 SRO€Kkatp Feal PTV F115,1"P Prr F-W rte. red Cfar g-•417 Far r3S ca-A- /TV CA4114Pa r 5 €ir c �' SRU 24-15 f jr 4; Proposed Location K-ff:Far azIr f tFS F-ed Ea?c 14' .FEC SRU 22=23 P.d err ggeN*E n fry Far 1-2-,TS rir€�E is GTOk - Fed SRF Field Overview r 4-14-1r Fed TnFf.r'F-sr4 ryes? err€ce.F, P{0 rk ff FEd MP ter Tr 174•f rat rrr c c^ g-t:U074'Fed -c .1 P&S YARD,' Legend SRU ed 15 1 inch=1,250 feet n Surface Wells Proposed Well /V "fil^^p"•`•"" 0 SRU 24-15 Proposed Location Fi Feet Map Date 1/92013 gure 2 0 2,000 4,000 O One Mile Radius Buffer } :e� id� �6'4I1 .♦ rarr 1 �, 1. s # { ! tRi p r i,.,1` 0• t' r t ", 'a a jt, _ �•a`Ali g Y f * 4♦Rs #� "t'�;rf e,g� 4, ! � tr""� �' �! � �I � / �,��f • '.r' .z ° p a 1+ # a . ♦ . 1, rj �' ► � l �" t !"r. {rep .1 . 4 �r, y ;' 't 4,t r if'a , f�' , ,?...:0„;.,,,,' �da� .�` �� }.� r{� {r, t 4 I'.r {r,� q� a * ' ' '14 / AA" .t.. .' t. , '' f. k ea, f 4.. 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'4'4.: 4 t .1 ; "4 -" • : 4 . ,„: . ' „; 4,". Is p r! 9 ♦t { a 1[ ..� �♦aft � ;s� 1� ; 't♦ ♦r � * SRFField r �t�t i‘",.$ ! ' ' r 1 H� 4 f' 1 'l Overview s sy� *1 ,/ 3,'• '43 rM 'r ♦ 414 d S '•,1 a ` T r .a 1 qr',. t r e♦� !s qtr { t, do%' t 'S't , 'tr a` ♦r 'C Project• *.+1301 l + R #� �! i' q ♦� i to ♦ a i`! �+ t Area € i A, ! t`44 t'*4 !��' ' ! ,/ } ' ! 1I„♦” •A } '• ' t err 3 '• t i"I� «, is 4!* £ { +k '�r! a °# Legend " SRU 24 15 Proposed Well 1 inch=50 feet A Surface Wells SCU 234 15 Well Pad "`""'"�."' Figure 3 Feet Map Date: 1/9/2013 0 SRU 24-15 Proposed Location 0 50 100 1 ! I 1 d s sa' N 16 Z Jam -:!o i a * E Z J = m o= .,56.A a m Q J 7-c JiiF Ce-LO' m Om� §°a ` -114 4' 74'gat /to a • IWs9.£111,01 AI/ Y CC Z F2 H CO I-- m .0 W w t W U) m d J U0 zz <-0 mm U il =U ` � a 1I= m n W; m m> m0 a 1-8 li •I'� A 1 W Z 0 W W i- ce a W �� LEI pmw K -- 1 .A rim= I' aa,- a °mm Z m dhImo •• r' 0. ✓ ^� ' =�y0 O N CO X K J I ii,• n,:r���aal ,".die!1'� `� OK�OU _ ' N �YO¢� ileq,i I1�1 OM CT? 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R] O °l N Lc)N o Co ai u O E N oo • III / Hilcorp Alaska, LLC SRU 24-15 Drilling & Completion Program Swanson River Revision 0 Jan 8, 2013 Swanson River Unit 24-15 Hilcorp Drilling Procedure Energy comoan, Contents 1.0 Well Summary 2 2.0 Management of Change Information 3 3.0 Tubular Program: 4 4.0 Drill Pipe Information: 4 5.0 Planned Wellbore Schematic 5 6.0 Drilling/Completion Summary 6 7.0 Mandatory Regulatory Compliance/Notifications 7 8.0 R/U and Preparatory Work 9 9.0 N/U 16"conductor riser 10 10.0 Drill 13-1/2"Hole Section 11 11.0 Run 10-3/4"Surface Casing 14 12.0 Cement 10-3/4"Surface Casing 16 13.0 BOP N/U and Test 18 14.0 Drill 9-7/8"Hole Section 20 15.0 Run 7-5/8"Production Casing 26 16.0 Cement 7-5/8"Cement Procedure 28 17.0 Drill 6-3/4"Hole Section 31 18.0 Run 5"Production Liner 35 19.0 Cement 5"Production Liner 37 20.0 Wellbore Clean Up&Displacement 41 21.0 RDMO 42 22.0 BOP Schematic 43 23.0 Wellhead Schematic 44 24.0 Days Vs Depth 45 25.0 Geo-Prog 46 26.0 Anticipated Drilling Hazards 47 27.0 Rig Layout 50 28.0 FIT Procedure 51 29.0 Arctic Fox Choke Manifold Schematic 52 30.0 Casing Design Information 53 31.0 9-7/8"Hole Section MASP 54 32.0 6-3/4"Hole Section MASP 55 33.0 Directional Program(P2) 56 34.0 Directional Plan View(Plot) 63 35.0 Spider Plot(NAD 27)(Governmental Sections) 64 36.0 Spider Plot(NAD 83)(Governmental Sections) 65 37.0 Surface Plat(As Built)(NAD 27) 66 38.0 Surface Plat(As Built)(NAD 83) 67 39.0 MW,PP,FG vs Depth Plot 68 Swanson River Unit 24-15 Drilling & Completion Procedure Hilcorp Edgy Campos]. 1.0 Well Summary Well SRU 24-15 Pad&Old Well Designation SRU 234-15 Pad/SRU 24-15 is a grass roots well Planned Completion Type Gas lift on 3-1/2"IBT production tubing Target Reservoir(s) Hemlock Planned Well TD,MD/TVD 11,710' MD/ 11,458' TVD PBTD,MD/TVD 11,618'MD/ 11,373' TVD Surface Location(Governmental) 881'FSL,2370'FEL, Sec 15,T8N,R9W, SM Surface Location(NAD 27) X=350734,Y=2477838 Surface Location(NAD 83) X= 1490757,Y=2477599 Top of Productive Horizon (Governmental) 786'FSL, 1763'FWL, Sec 15,T8N,R9W, SM TPH Location(NAD 27) X=349561,Y=2477762 TPH Location(NAD 83) X= 1489608,Y=2477525 BHL(Governmental) 765'FSL, 1490'FWL,Sec 15,T8N,R9W, SM BHL(NAD 27) X=349312,Y=2477746 BHL(NAD 83) X= 1489335,Y=2477508 AFE Number 1212877 AFE Drilling Days 28 AFE Completion Days 7 AFE Drilling Amount $4.713 MM AFE Completion Amount $1.571 MM 5" 19.5#S-135 NC-50(Rental string from Knight Oil Tools) Work String 4" 14#S-135 HT-38(Rental string from Weatherford) RKB—GL 18.6' . Ground Elevation 288.9' AMSL(NAVD88) BOP Equipment 11"5M Schaffer Annular BOP 11"5M Schaffer Double Ram 11"5M Schaffer Single Ram Page 2 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp CorW'7 2.0 Management of Change Information Hilcorp Alaska, LLC Hilcorp Changes to Approved Permit to Drill Date: Jan 8, 2013 Subject: Changes to Approved Permit to Drill for SRU 24-15 File#: SRU 24-15 Drilling and Completion Program Any modifications to SRU 24-15 Drilling& Completion Program will be documented and approved below. Changes to an approved APD will be communicated to the AOGCC &BLh,9. -1 Section Page Date Procedure Change Approved Approved By By Approval: Drilling Manager Date Prepared: Drilling Engineer Date Page 3 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling & Completion Procedure Hilcorp Emmy comp 3.0 Tubular Program: Hole OD(in) ID(in) Drift Conn Wt Grade Conn Burst Collapse Tension Section _ (in) OD(in) (#/ft) (psi) (psi) (k-lbs) Cond 16" 15" - - 109 X-56 Weld 13-1/2" 10-3/4" 9.95" 9.875" 11.75" 45.5 L-80 BTC 5210 2480 1040 9-7/8" 7-5/8" 6.875" 6.75" 8.5" 29.7 L-80 BTC 6890 4790 683 9-7/8" 7-5/8" 6.875" 6.75" 8.5" 29.7 P-110 HC BTC 9470 7580 769 6-3/4" 5" 4.408" 4.283" 5.563" 15 L-80 DWC/C 8290 7250 350 HT 4.0 Drill Pipe Information: Hole OD(in) ID(in) TJ ID TJ OD Wt Grade Conn Burst Collapse Tension Section (in) (in) (#/ft) (psi) (psi) (k-lbs, 13-1/2" 5" 4.276 2-3/4" 6-5/16" 19.5 S-135 NC-50 15,638 10,029 560k 9-7/8" 6-3/4" 4" 3.34 2-9/16" 4-7/8" 14 S-135 HT-38 18,400 13,800 403k All casing will be new, PSL 1 (100%mill inspected, 10%inspection upon delivery to TSA in Fairbanks). Page 4 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling & Completion Procedure Hilcorp Bony Compaq 5.0 Planned Wellbore Schematic Ti., _ . . hinted Plann e "` ' CA Casing & Tubing Size Type WI Grade Conn, ID Top Btm I1 ' J I Conductor- iS VD 16' DrieentoSet 1CP a-55 We le 15 60' '1 Depth 14 :1 D 1 1C-3/4' Surf.Ces _55 _El 2 :_.,ess ;.575' S-rf 3,000' i ..-32 5.75' Surf 7000' 7-5/8' Intermediate _ - 3I 6 3 of 2 2.-. 5.75' 7,s000' 10,500 1s-3' o 5' Prod 1-er 1 5 --52. `'." ` -.5 5' 17.300 11.710' I b ' a wow Tubing X 0 4 1 3-112" I Production I _ 2 I L-301BT I 5- I 2_ 1 I 5-' 1 172__ l i JEWELRY DETAIL Depth ID OD Item - 6I b 20' 2.44" - Tubing Hanger • 2 1,300' 2.44" 4.750" 5-1/2"5F0-1 Mandrel ERD 12 port 2,400' 2.44" 4.750" 3-1J1"5F0-1 Mandrel 6P.D 12 port ° 4 3,500' 2.44" 4.750" 5-IJZ'"SF 0-1 Mandrel BRD 12 port 4,600' 2.44' 4.750" 5-1/2"5F0-1 NIB ndrel6RD 12 port ' _ 5,200' 2.44' 4.750" 3-3./2"5f0-1 Mandrel6RD 12 port 7 5,200' 2.44" 4.750" 3-1/2"5r0-1 Mandrel6P.D 12 port g = 5,900' 2.44" 4.750" 3-1J2"5F0-1 Mandrel BRD 12 port ' M 7,900' 2.44" 4.750" 3-1/2"5FO-i andrel BRD 12 port 11/ z,, IMAIL __ 10,160' 2.000" 6.5" Or11Off Teel w/XNipple a . f s a 11 10,160' 1.97B" 4.140" kturoltt Mectwnical Packer 11 kill 12 10,200' - - WL Entry Guide WI X Nipple 746.- 12 SIN 10300 / r IL I TD=11,710 I1-D=11,4 a S' Page 5 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure E Hi lamp ig Compaq 6.0 Drilling / Completion Summary 5reti-24-15 is a grass roots development oil well to be drilled off the SRU 234-15 pad. Integrated subsurface and 3-D geological interpretations, in conjunction with previous production data, indicates that stranded oil reserves remain in the Hemlock 1-5 benches south of the H fault. H1-H5,reserves aren't recoverable in existing wellbores due to lack of takepoints,or mechanical condition of other existing wellbores in the fault ' block. SRU 14-15 was a mechanical completion failure and only produced 15 MBO Cumulative. The base plan is a slightly deviated wellbore reaching a maximum inclination of 22.2 deg and a 1425' vertical separation. Drilling operations are expected to commence approximately Mar 1st,2013. The Doyon Arctic Fox will be used to drill and partially complete the wellbore. The Williams rig or AWS #1 will be used to perforate the liner and run the 3-1/2"production tubing. All known potential fresh water zones exist above 2000'. Surface casing will be run to 3000' MD and cemented to surface to ensure protection of these resources. Cement returns to surface will confirm TOC at surface. If cmt returns to surface are not observed, a Temp log will be run between 6 — 12 hrs after CIP to determine TOC. Necessary remedial action will then be discussed with AOGCC and BLM authorities. All waste & mud generated while drilling SRU 24-15 will be injected into waste disposal well SCU 43-04 WD. General sequence of operations: 1. MOB Doyon Arctic Fox to well site 2. N/U 16"conductor riser. 3. Drill 13-1/2"hole to 3000' MD. Run and cmt 10-3/4" surface casing. 4. N/D conductor riser,N/U&test 11"x 5M Hydril BOP. 5. Drill 9-7/8"hole section to 10,500' MD. Run wireline logs. Run and cmt 7-5/8"intermediate casing. 6. Drill 6-3/4"production hole section to TD. Run wireline logs. Run and cmt 5"production liner. 7. TIH w/clean out assy, clean out liner to landing collar. Displace mud to 6%KC1 filtered completion fluid. 8. TOH, LDDP ? K ( Syrii• 9. N/D BOP,N/U temp abandonment cap, RDMO Page 6 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hileorp &my"Cawing 7.0 Mandatory Regulatory Compliance / Notifications Regulatory Compliance Ensure that our drilling and completion operations comply with the below AOGCC and BLM 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 and completion of SRU 24-15. Ensure to provide AOGCC 24 hrs notice & BLM 48 hrs notice prior to testing BOPs. • The initial test of BOP equipment will be to 250/4000 psi& subsequent tests of the BOP equipment will be to 250/4000 psi for 10/10 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 7 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" • All Federal regulations within BLM"Onshore Oil and Gas Order#1" • Ensure both AOGCC &BLM approved drilling permits are posted on the rig floor and in Co Man office. Summary of BOP Equipment and Test Requirements Hole Section Equipment Test Pressure(psi) 13-1/2" • No diverter utilized. N/A • 11"x 5M Hydril GK Annular BOP • 11"x 5M Hydril Double Ram Initial Test:250/4000 o Blind ram in btm cavity (Annular 2500 psi) 9-7/8"&6-3/4" • Mud cross • 11"x 5M Hydril Single Ram Subsequent Tests: • 3-1/16"5M Choke Manifold 250/4000 • Standpipe,floor valves,etc (Annular 2500 psi) Page 7 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hil Raw Comm, • Primary closing unit: 1 ea.—Olio, 6 station, 3000 psi, 180-gallon accumulator unit, with a remote control panel in the doghouse. • 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). • 24 hours notice prior to spud. • 24 hours notice prior to testing BOPs. • 24 hours notice prior to casing running&cement operations. • Any other notifications required in APD. Required BLM Notifications: • 48 hours before spud. Follow up with actual spud date and time. • 48 hours before casing running and cmt operations • 48 hours before BOPE tests • 48 hours before logging, coring, &testing • Any other notifications required in 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):907-276-7542/Email:guy.schwartz @alaska.gov Victoria Ferguson/Petroleum Engineer/(0): 907-793-1247/Email: Victoria.ferguson @ alaska.gov Primary Contact for Opportunity to witness: AOGCC.Inspectors @ alaska.gov Test/Inspection notification standardization format: http://doa.alaska.gov/ogc/forms/TestWitnessNotif.html Notification/Emergency Phone: 907-793-1236(During normal Business Hours) Notification/Emergency Phone: 907-659-2714(Outside normal Business Hours) BLM Tom Zelenka/BLM Petroleum Engineer/(0): 907-271-4224 (C): 907-301-8972 Justin Miller/BLM Petroleum Engineer/ (0): 907-271-3406 (C):907-717-4039 Use the below email address for BOP notifications to the BLM: BLM_AK_AKSO_EnergySection_Notifications@b1m.gov Page 8 Revision 0 Jan,2012 111 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp Row Comm 8.0 R/U and Preparatory Work 8.1 Set16"conductor at 60' below ground level. • 8.2 Dig out and set"Cellar Tech" impermeable cellar. 8.3 Install slip-on 16-3/4"3M "A" section. Ensure to orient wellhead so that tree will line up with flowline later. 8.4 Level pad and ensure enough room for layout of rig footprint and R/U. 8.5 Layout Herculite on pad to extend beyond footprint of rig. 8.6 R/U Doyon Arctic Fox, spot service company shacks, spot&R/U company man &toolpusher offices. 8.7 After rig equipment has been spotted, R/U handi-berm containment system around footprint of rig. 8.8 Mix mud for 13-1/2"hole section. 8.9 Set test Plug in wellhead prior to N/U conductor riser to ensure nothing can fall into the wellbore if it is accidentally dropped during N/U of BOP. 8.10 Install 5" liners in mud pumps. We will need all (3)pumps to pump at 600 - 650 gpm. • 750 HP PZH mud pumps are rated at 3912 psi with 5"liners. Page 9 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hilt 9.0 N/U 16" conductor riser. 9.1 R/U fill up line to conductor riser. • Ensure line does not direct flow from trip tank straight down the flowline. Fill up line and flowline should be oriented 90 degrees to eachother at approx. the same height. • Ensure flowline outlet installed so that enough slope exists to carry cuttings to the shakers. • Consider adding additional drainage points at the bottom of the conductor riser if deemed necessary. 9.2 Set 15.375"ID wearbushing in wellhead. Page 10 Revision 0 Jan,2012 Ili Swanson River Unit 24-15 Drilling & Completion Procedure Hilcorp knew Compam7 10.0 Drill 13-1/2" Hole Section 10.1 P/U 13-1/2"directional drilling assy: • Ensure BHA components have been inspected previously. • Drift and caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. • Ensure TF offset is measured accurately and entered correctly into the MWD software. • Bit TFA should be .739 in2. We need to pump at 600 to 650 gpm to clean the hole effectively. • Have DD run an independent hydraulic analysis to confirm optimum TFA. • Motor AKO should be set at 1.2deg. Max DLS in the 13-1/2"hole section(P1) is 1.5 deg/100 • Workstring will be 5" 19.5#S-135 NC-50 10.2 Primary bit will be the Hughes Christensen 13-1/2"MXL-1X. These are available at Baker Hughes facility in Anchorage. 13 1/2" MXL-1X / r (342.9 • SE\I II sealed bearing package(SEMI Hi SEM U sealed bearing package is a second generation patented single energizer metal seal system with propnetary wear resistant seal surface to retard seal wear.improve sealing efficiency-.and - . { ic provide lore life in high RP2slmotor applications. •r t Al' � • GX cutting structure technology The cutting structure provides advanced y , "& cone profiles.re-engineered compact tooth shapes.optimized carbide grades. ._ ■ r "�• t and strategically placed cone savers.Flexible hy-dratilics:application specific Y+� choice of biased or unbiased hydraulic conf euranons to ensure optimum cone ••"' cleaning.reduced balling.and managed cone erosion For long life and high penetration rates. •t-'/ • Flexible hydraulics Application specific choice of biased or unbiased ate hydraulic configurations to ensure optimum cone cleanuso.reduced balling.and aVairr managed cone erosion.For long life and high penetration rates • Enhanced 01)protectionlsnproved applications of Endura2 motor hardfacsng.new contoured shirttail geometry.and BOSS pads for near six point stabslizaaon.Provides excellent leg and shirttail wear resistance.for long life in directional drilling applications .40.. PRODTC'T SPECIFICATIO\S: IADC• 117 Cearing Sect Package: Jcarnal Metal Cutting Swcnur: Inter Row N A Heel Row N A Gauge Row K�A Gauge Trimmers N Tooth Hardfacino: N A OD Hardfacmg: N A Nozzle Type: Standard Center Jet Display: ti:A Makeup Torque: 2S 0-32 0 klbf-R(33.0-43.4 kVm) '"`-� Connection: 6-5S API Approx Shipping Weight '55 lb(115 7 kg) Reference Part Number. H?015000 OPERATL\G RECO\LNMENDATIOc S`: Weight Oa Bit: 20-47.5 klb(9-21 to or kda]) Rotation Speed: For High Speed RotaryMfotor Applications Page 11 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure bzwqy Hilcorp 10.3 5"HWDP &Jars will come from Weatherford. 10.4 13-1/2"proposed BHA: • 13-1/2"MTB (IADC 117) • Mud Motor(1.2deg) • Non-Mag Stab (13-3/8" OD) • NMPC • MWD (Directional +Inclination Only) • (3)Non-Mag Flex collars • XO • (5) 5"HWDP • 6-1/4"Dailey Jar • (21) 5"HWDP • 5"DP to surface. 10.5 No LWD tools will be run on the 13-1/2"hole section. 10.6 Begin drilling out from 16" conductor at reduced flow rates to avoid broaching the conductor. 10.7 Drill 13-1/2"hole section to 3000' MD/2998' TVD. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Pump at 600- 650 gpm. This gives us an annular velocity of 90 fpm,which is borderline for effective hole cleaning. Ensure shaker screens are set up to handle this flowrate. • 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. • Make wiper trips every 500' or every couple days unless hole conditions dictate otherwise. • Ensure shale shakers are functioning properly. Check for holes in screens on connections. • Adjust MW as necessary to maintain hole stability. Keep API fluid loss< 10. • TD the hole section in a good shale btwn 2900' & 3100' MD. • Take MWD surveys every stand drld. Page 12 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp 10.8 13-1/2"hole mud program summary: Weighting material to be used for the hole section will be barite. Additional barite will be on location to weight up the active system (1)ppg above highest anticipated MW. MD Totco 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: 10- 10.5 ppg Pre-Hydrated Aquagel/freshwater spud mud Properti • Depths Density iscosity Plastic Viscosity Yield Point API FL pH • 80-3000' 10- 10.5. 60-85 10-30 45-25 <10 8.5-9.0 stem F rmulation: Aquagel/FW spud mud Product Concentration Fresh Water 0.905 bbl soda Ash 0.5 ppb AQUAGEL 12-15 ppb caustic soda 0.1 ppb (9 pH) BARAZAN D+ as needed BAROID 41 as required for weight 10.5ppg PAC-L/DEXTRID LT if required for<12 FL ALDACIDE G 0.1 ppb X-TEND II 0.02 ppb 10.9 At TD; pump sweeps, CBU, and pull a wiper trip back to the 16" conductor shoe. 10.10 TOH with the drilling assy, handle BHA as appropriate. 10.11 No open hole logs are planned for the 13-1/2"hole section. Page 13 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp S:ncny Comps*, 11.0 Run 10-3/4" Surface Casing 11.1 R/U and pull 15.375"wearbushing. 11.2 R/U Weatherford 10-3/4"casing running equipment. • Ensure 10-3/4"BTC x 5"NC-50 XO on rig floor and M/U to FOSV. • R/U fill up line to fill casing while running. • Ensure all casing has been drifted on the location prior to running. • Be sure to count the total#of joints on the location 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. 11.3 P/U shoe joint,visually verify no debris inside joint. 11.4 Continue M/U&thread locking shoe track assy consisting of: • (1) Shoe joint w/float shoe bucked on (thread locked). • (1)Joint with coupling thread locked. • (1)Joint with float collar bucked on pin end&thread locked. • Install (2)centralizers on shoe track over a stop collar. 10' from each end. • Ensure proper operation of float equipment. 11.5 Continue running 10-3/4" surface casing • Fill casing while running using fill up line on rig floor. • Use"API Modified"thread compound. Dope pin end only w/paint brush. • M/U connections to the base of the triangle stamped on the pin end. Note M/U torque values required to achieve this position. Estimated torque to reach base of triangle: 10,750 ft-lbs. • After making up several connections,use the torque required to M/U to base of triangle as the M/U torque and continue running string. • Install(1) centralizer every other joint to 300'. Do not run any centralizers above 300' in the event a top out job is needed. • Utilize a collar clamp until weight is sufficient to keep slips set properly. 10-3/4"BTC Estimated M/U Torque Casing OD Est Torque to Reach Triangle Base 10-3/4" 10,750 ft-lbs Page 14 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling & Completion Procedure Hilcorp two,Compaq Tenaris Casing and Tubing Performance Data Choose pipe size,wall thickness and steel grade to view API connection options and performance data. Size w Wall '" Grade • Connection Unit Pipe Body Data GEOMETRY • Nominal OD 10.750 in Wall Thickness 0.400 in API Drift Diameter 9.794 in Nominal Weight 45.50 Ibsfft Nominal ID 9.950 in Alternate Drift Diameter 9.875 in Plain End Weight 44.26 Ibs.ft Nominal Cross Section 13.006 sq in PERFORMANCE Steel Grade L80 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Body Yield Strength 1,040,000 Ls Internal Yield Pressure 5,210 psi Collapse Pressure 2,470 psi L7 Connection Data GEOMETRY Regular OD 11.750 in Threads Per Inch 5 Make-Up Thread Turns 1 PERFORMANCE Steel Grade 180 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Joint Strength 1.063.000 lbs Internal Pressure 5,210 psi Resistance TenarisH:dril Premium Connections Print I Contact Us Ver 8.6 11.6 Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 11.7 Slow in and out of slips. 11.8 P/U casing hanger joint and M/U to string. Casing hanger joint will come out to the rig with the landing joint already M/U. Position the shoe as close to TD as possible. Strap the landing joint while it is on the deck and mark the joint at (1) ft intervals to use as a reference when landing the hanger. 11.9 Lower string and land out in wellhead. Confirm measurements indicate the hanger has correctly landed out in the wellhead profile. Page 15 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hdlg 11.10 R/U circulating equipment and circulate the greater of 1 x casing capacity or 1 x OH volume. Elevate the hanger offseat to avoid plugging the flutes. Stage up pump slowly and monitor losses closely while circulating. 11.11 After circulating, lower string and land hanger in wellhead again. 12.0 Cement 10-3/4" Surface Casing 12.1 Hold a pre job safety meeting over the upcoming cmt operations. Make room in pits for volume gained during cement job. Ensure adequate cement displacement volume available as well. 12.2 R/U cmt head(if not already done so). Ensure top and bottom plugs have been loaded correctly. 12.3 Pump 5 bbls 10 ppg spacer. Test surface cmt lines. 12.4 Pump remaining 35 bbls 10 ppg spacer. 12.5 Drop bottom plug. Mix and pump cmt per below recipe. 12.6 Cement volume based on annular volume+ 100%open hole excess. Job will consist of lead & tail, TOC brought to surface. ✓ Estimated Total Cement Volume: Section: Calculation: Vol(BBLS) Vol (ft3) LEAD: 80' x .106 bpf= 8.5 47.8 16"Conductor x 10-3/4" casing annulus: LEAD: (2500' — 80') x . pf x 2= 314.6 1766.5 13-1/2"OH x 10-3/4" st4 °- Casing annulus: Z•4" Total LEAD: 323.1 1814.3 TAIL: (3000'-2500')x .065 bpf x 2 = 65 365 13-1/2"OH x 10-3/4" ,45 Casing annulus: 33� TAIL: 90 x .096 bpf = 8.7 48.8 c?/s) 10-3/4" Shoe track: 1.t-'" Total TAIL: 73.7 414 Page 16 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling & Completion Procedure Hilcorp 1 ntrgy Company Cement Slurry Design: Lead Slurry (2500' MD to surface) Tail Slurry(3000' to 2500' MD) System Extended Conventional Density 12 lb/gal 15.4 lb/gal Yield 2.44 ft3/sk ✓ 1.22 ft3/sk ✓ Mixed Water 14.349 gal/sk 5.507 gal/sk Mixed Fluid 14.469 gal/sk 5.507 gal/sk Code Description Concentration Code Description Concentration Type1 Cement 94 lb/sk WBWOB Type1 Cement 94 lb/sk WBWOB D110 Retarder 0.12 gal/sk VBWOC D046 Anti Foam 0.2%BWOB Additives D046 Anti Foam 0.2% BWOB D065 Dispersant 0.4%BWOB D079 Extender 2.0% BWOB S002 CaCl2 0.2%BWOB D020 Extender 2.6%BWOB S002 CaCl2 0.2%BWOB 12.7 Attempt to reciprocate casing during cement pumping if hole conditions allow. Keep the hanger elevated above the wellhead while working. If the hole gets"sticky", land the hanger on seat and continue with the cement job. 12.8 After pumping cement, drop top plug and displace cement with 10.5 ppg 6%KC1/PHPA drilling fluid(mud and MW to be used on next hole section). 12.9 Ensure cement unit is used to displace cmt so that volume tracking is more accurate. 12.10 Displacement calculation: 2910' x .0962 bpf=280 bbls 12.11 Monitor returns closely while displacing cement. Adjust pump rate if necessary. If hanger flutes become plugged, open wellhead side outlet in cellar and take returns to cellar. Be prepared to pump out fluid from cellar. Have some sx of sugar available to retard setting of cement. 12.12 Do not overdisplace by more than %2 shoe track volume. Total volume in shoe track is 8.7 bbls. 12.13 Be prepared for cement returns to surface. If cmt returns are not observed to surface, be prepared to run a temp log btwn 6— 12 hours after CIP. 12.14 Bump the plug with 500 psi over displacement pressure. Bleed off pressure and confirm floats are holding. If floats do not hold,pressure up string to final circulating pressure and hold until cement is set. Monitor pressure build up and do not let it exceed 500 psi above final circulating pressure if pressure must be held. Page 17 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling &Completion Procedure am.Hilcorp 12.15 R/D cement equipment. Flush out wellhead with FW. 12.16 Back out and L/D landing joint. Flush out wellhead with FW. 12.17 M/U pack-off running tool and pack-off to bottom of Landing joint. Set casing hanger packoff. Run in lock downs and inject plastic packing element. 12.18 Lay down landing joint and pack-off running tool. 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 success or problems during the cement job Page 18 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hi'carp Boni CumP117 13.0 BOP N/U and Test 13.7 N/D the conductor riser. 13.8 N/U Seaboard multibowl wellhead assy. Install packoff 10-3/4"P-seals. Test to 3000 psi. 13.9 N/U 11"x 5M Hydril BOP as follows: • BOP configuration from Top down: 11"x 5M Hydril GK annular BOP/11"x 5M Hydril double ram/11"x 5M mud cross/Hydril single ram. • Double ram should be dressed with 5" Fixed ram in top cavity, blind ram in btm cavity. • Single ram should be dressed with 7-5/8" casing ram. • N/U bell nipple, install flowline. 13.10 Run BOP test assy, land out test plug (if not installed previously). • Test BOP to 250/4000 psi for 10/10 min. Test annular to 250/2500 psi for 10/10 min. • Ensure to leave"A" section side outlet valves open during BOP testing so pressure does not build up beneath the test plug. 13.11 R/D BOP test assy. 13.12 Dump and clean mud pits, send spud mud to G&I pad for injection. 13.13 Mix 10.5 ppg 6%KC1/PHPA drilling fluid for 9-7/8"hole section. 13.14 Set 10"ID wearbushing in wellhead. 13.15 Rack back as much 5"DP in derrick as possible to be used while drilling the hole section. Page 19 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure H amCCO� 14.0 Drill 9-7/8" Hole Section 14.7 P/U 9-7/8""Drill Out"assy consisting of: • 9-7/8" Mill Tooth Bit(Baker Hughes MXL-1)(IADC 117) • 9-3/4"Near Bit stab (bored for float) • Pony Collar • 9-3/4" String Stab • (1) 6-3/4"DC • 9-3/4" String Stab • (2)6-3/4"DC • XO • (5) 5"HWDP • Drilling Jar • (21) 5"HWDP • 5"DP to surface 14.8 Ensure BHA components have been inspected previously. 14.9 Drift and caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. 14.10 Bit for the clean out run will be the Baker Hughes 9-7/8"MXL-1. These are available at Baker Hughes facility in Anchorage (style sheet on next page). 14.11 Bit TFA should be between 0.55 and 0.65 in2. We need to pump at a minimum of 500 gpm to clean the hole effectively. Have the directional drillers run hydraulics calculations to confirm optimum TFA. Page 20 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp Unany Compaq .v't Sheet 9 7/8" MXL-1 BAKER (250.8 min) HUGHES • SEMi11 sealed bea ring.p ado e(SESIII.SE`•I11 sealed bearing package ii a=.ecend generation parented single energizer metal seal system Aith pecond generation n :tint seal surface to retard seal wear, improve sealing effidenc}'.and prende kng life in high RPM motor Iapplication:. a GX r Lit tin g.tructuretecbuolo'The curing stru:lure provides advanced cone profile_:.re-?.ngineered compact tooat shapes.cparvze. carbide grates.and siraregicallyplaced cone saves. a Flexible hydraulics Applkaaon spe:ifi:choice of biased Cr=billed hydraulic configurations to.sure op iirstnt cone cleaning.reduced balling.and nrana fed cone erosion For ion rlife and high penetration rates .- - `„ ■ Be:a S tab ilsatiou sr.teuThese unique inre'r are 1 snbilizer-:pro tide t4. i n sear sin-point:antact With the b.:7&O1 wall for unequaled siatility and q,,;y v cutting structure prerecricn. t° • Enhanced OD protection Improved applicaticns ofEndura2 motor hardfa:ing,new contoured shirrrail gecrleiry.and BOSS pads for near sit point stabilization.Provides escellent leg.and shirtrail Wear resistance.for long life in directional drilling appbcanon=.. Product Specifications IADC: 11? Be sag Seal Package: Journal Metal �;a'3" ,• CuningStructure: Inner Row Sups;]tick wed Heel Row Bi-Metallic II Gauge Row Super Gauge Gauze i rinanierc N Tooth Hardfa:ine: 1:A OD Hardfa:ina Motor Nozzle Type: Standard Center Jet Display: FF or VF Makeup Torque: 28.0-32.0klbf--ft(38.0-43.4Wan) Connection: 5-5'8 REG API Approx.Shipping Weight: 145 lb(55.8 kg) Reference Parr Number: H2 0649 01 Oretattir„;Recctnmetldaticnt': 1i eight On Bit: 1 7.5-45 kb(7-20 in or kill:) Rotation Speed: For High Speed RotarvMotot Applic rations Page 21 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hil Snow tiasspry 14.12 TIH to TOC (+/-2900' MD). 14.13 R/U and test casing to 1500 psi/30 min. Ensure to record volume/pressure and plot on FIT graph. 14.14 9-7/8"hole section mud program summary: Weighting material to be used for the hole section will be barite. Additional barite will be on location to weight up the active system (1)ppg above highest anticipated MW. MD Totco 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: 10.5ppg 6%KC1/PHPA fresh water based drilling fluid. Properties: Depths Density Viscosity Plastic Viscosity Yield Point HTHP FL pH 3000'-10000 10.5- / 60 100 15 30 20 30 <10 8.5-9.5 12.5 • System Formulation: 6% KCI / PHPA Product Concentration Water 0.905 bbl KCI 22 ppb Caustic 0.2 ppb (9 pH) BARAZAN D+ 1.1 ppb (as required 18+YP) DEXTRID LT 1-2 ppb EZ MUD DP 0.5 ppb (initial.15 ppb) ALDACIDE G 0.1 ppb BAROID 41 208 ppb (as needed to 12.5) 14.15 Drill out plugs and shoe track. Clean out rat hole and drill an addition 20' of new formation. 14.16 CBU and condition mud for FIT. 14.17 Conduct FIT to 13.5 ppg EMW. Note: Offset field test data predicts frac gradient at the 10-3/4"shoe to be btwn 12.3 & 15.9 ppg EMW. A 13.5 ppg FIT results in a 1 ppg kick margin in the event a 12.5 ppg MW is used later in the hole section. Page 22 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp Lam Company 14.18 Drill 9-7/8"hole section to approx 3200' MD to allow all of 9-7/8"directional assy to buried (excluding HWDP and Jars). 14.19 CBU, TOH. L/D BHA. 14.20 P/U 9-7/8"directional drilling assy consisting of: • 9-7/8"PDC bit(Baker Hughes HCD504ZX). • Mud Motor(1.2deg) • Non-Mag Stab (9-3/4" OD) • NMPC • NaviGamma(D&I, +Gamma Ray) • (3)Non-Mag Flex collars • XO • (5) 5"HWDP • Dailey Jar • (21) 5"HWDP • 5"DP to surface 14.21 Ensure BHA components have been inspected previously. 14.22 Drift and caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. 14.23 Ensure TF offset is measured accurately and entered correctly into the MWD software. 14.24 Bit TFA should be between 0.778 in2. We need to pump at a minimum of 500 -550 gpm to clean the hole effectively. DD should run independent hydraulics to confirm optimum TFA. 14.25 Motor AKO should be set at 1.2deg. Max DLS in the 9-7/8"hole section(P1) is 2.5 deg/100. 14.26 Primary bit for the 9-7/8"hole section will be the 9-7/8"HCD504ZX PDC bit. It is available from Baker Hughes facility in Anchorage. Be sure to call out an insert bit to have available as back up. Page 23 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp Wog Canirm7 5.-Vt: Slleel Iggililli 9 7/8" HC D504ZX rni BAKER (2:+11.5 min) Genesis v • Application D iechn.loeyPDC bits se the prod solution for the ever increasingccmmplexiv of directi.nal applications and operator: rougher performance objecdves.In motor steetabh.rotary steerable and • . *" �`' Jt vertical drilling application:our technabgy enhancements offer superior perfa:r,••ce and directional control. E 2_teen Te r b i t to f.Patented EZSteer:depth-of-cut control technol•gy uses engineered bp.attrg surfaces In improve tcolfa:e control on motor steerable systerss and enhances pe fcrman:e on roan• steerable systems.The reeub h impreve.i directional performance rad highz?ROPs in all applsations. • LCC i_au_reIYe.i_n hebssgaugedesi gni-optimizedforthe application to notch the drive sy s teri de_=leg requirements add formation characteristic:.LGC(Length.Gezmetry and Cutting: structure)pure design apprz.ach deliver predictable and consist-pr.,— build rates without compromising hale quality. • C-ene_t-C urn r:Our designer:can choose iron a dive:e grcup of cutters with a range of diamond table thickness and dianr 4 carbide interfaces for the ideal ntin of agxessiveness and durability. • Gere-l-CFDHydrantict CFDana lysisisutilizedfreveryGenesi: design rad ensures the optimum balance between.flow.cutter codins_ and fluid erosion. Reference Photo: 9-?8 is(250.8mm) HCD504ZX Product Specifiretio¢s IADC: M223 i Number of Blades: 4 L Cutter Quanxity(Total.Face): 53.27 ! Primary Cutter Size .625 in(15.8 ram) Number of Nozzles.: 5 er ' ,ti _, Nozzle Type. SP e A` ''' �dw, Fixed TFA 0 in:((6.0 mm') • 1111111,1r TO 111,ty, Gauge Length 4 in(101.6 miry r-' .$ ' � Junk Slat area 12.8 inr 482.5 cm=) l ; Bit Breaker 123210007,123210 08,1232158SC Conne ticu: 6-5.8 API REG • I Makeup Torque: '' 7 1 2'—Bit Sub 37 1-424 kft-1b 003-57.5 kNtu) Reference Part Number: N19412 Status: 't Operating Recotnanendation5': H:I r a u l i t Fl:t:Rate: 400.-900 rpm(15 Cad-34Ce71pm) Rotation Speed: Fox Rotary.Motor.and Rotary Stee able Applications Max.Weight OnBit: 28 klb(12 m or kdaN) Page 24 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hi Imp 14.27 TIH, Conduct shallow hole test of MWD and confirm Gamma Ray LWD functioning properly. 14.28 Once on bottom, drill with light weight, and begin a new bottom hole pattern with the PDC bit. Do not be in a hurry to set down a bunch of weight and take off drilling. 14.29 Drill 9-7/8"hole section to 5000' MD/4998' TVD. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Pump at 500- 550 gpm. Ensure shaker screens are set up to handle this flowrate. • 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. • Make wiper trips every 500' or every couple days unless hole conditions dictate otherwise. • Ensure shale shakers are functioning properly. Check for holes in screens on connections. • Adjust MW as necessary to maintain hole stability. Keep HTHP fluid loss< 10. • Take MWD surveys every stand drld. 14.30 At 5000',begin increasing MW slowly from 10.5 ppg to 12.8 ppg. Monitor well closely for any losses. If losses are observed, stop increasing MW and discuss forward plan with Anchorage drill team. „ 17 14.31 If MW is not a02.8 j3pg by 6500' MD /6498' TVD, stop drilling and inc MW to 12.8 ppg slowly before drillirfg ahead. 14.32 Drill to 9-7/8"hole section TD at 10,500' MD/ 10,340' TVD. 14.33 At TD;pump sweeps, CBU, and pull a wiper trip back to the 10-3/4" shoe. 14.34 TOH with the drilling assy, stand back BHA if possible. 14.35 R/U and run OH logs consisting of: • Gamma Ray(GR) • Dual Spaced Neutron (DSNT) • Spectral Density Tool (SDLT), includes single axis caliper • X-Y Cross Dipole Sonic • Array Compensated Resistivity Tool (ACRT)—5 depths of investigation, includes Spontaneous Potential response (SP). , 14.36 Monitor the well at all times on the trip tank while logging. 14.37 After logging objectives accomplished,pick up a wiper trip BHA and make another run to TD. Circ B/U at TD and TOH. Rack back DP, handle BHA as appropriate. Page 25 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure 11CO1 Cap Many 15.0 Run 7-5/8" Production Casing 15.1 R/U and pull 10"ID wear bushing. 15.2 R/U Weatherford 7-5/8" casing running equipment. • Ensure 7-5/8"BTC x 5"NC-50 XO on rig floor and M/U to FOSV. • R/U fill up line to fill casing while running. • Ensure all casing has been drifted on the deck prior to running. • Be sure to count the total #of joints on the deck 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. 15.3 P/U 7-5/8" 29.7#P-110 HC BTC shoe joint,visually verify no debris inside joint. 15.4 Continue M/U &thread locking the shoe track assy consisting of: • (1)Float shoe joint w/float shoe bucked on. Install (2)bow spring centralizers at 10' from each end over a stop collar. • (1)Baker locked joint. Install (1)centralizer mid tube over a stop collar. • (1)Float collar joint w/float collar bucked on pin end. Install (1)centralizer mid tube over a stop collar. • Ensure proper operation of float shoe and float collar. 15.5 Run approx 3500' of 7-5/8"29.7#P-110 HC BTC casing to ensure coverage across the lower ✓ tyonek water flow and the other overpressured water/gas sands from 7300' to 8500'. • Fill casing while running using fill up line on rig floor. • Use"API Modified"thread compound. Dope pin end only w/paint brush. • Utilize a collar clamp until weight is sufficient to keep slips set properly. • Install centralizers over couplings on every other joint to 9000' MD. • Install centralizers over couplings on every 4th joint above 9000' MD. 15.6 Run 7-5/8" 29.7#L-80 BTC casing above the P-110. • Install centralizers over couplings on every 4th joint to 4000' MD. 15.7 Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 15.8 Slow in and out of slips. 15.9 P/U casing hanger joint and M/U to string. Casing hanger joint will come out to the rig with the landing joint already M/U. Position the shoe approx 10—20' above TD. Strap the landing joint while it is on the deck and mark the joint at(1) ft intervals to use as a reference when landing the hanger. Page 26 Revision 0 Jan, 2012 11 Swanson River Unit 24-15 Drilling & Completion Procedure Hilcorp Casing and Tubing Performance Data PIPE BODY DATA GI 0P44(MV l)I44k DramMnl 1.I3S in Wadi itwktucwr+i O.IA Mr AM DA Diarraler4 c AO in Nrmnalat YYwryyt ( 1(lba/II Ikinilnal it) 6.01%hr 44,011rat114 ti*OopmeRer 11•411. Maur Ind Waltyttt )9.0610,/lt Nntr;l 4 tons 411411014 0.541 In P1 MI411,MAN(I Siert Grade I No Mnnnlutn Yield (ui,rru11 p+i Mnwmum Uttnn 1, 9'.,O*0 psi I inI onnonn Yre,id AM 0,u*4*in lt,er<rn,41Rnua/xvs Yt.kl A,0$90 p.,d (k4In044 prrsaurn a,lore pa4 An1114144r Ni!01111tmb YVA Au;.1h,bir Wrldad CONNECTION DATA 11,14 nil i.1 i'Ml INY ....kn i Inv III P.'.40 In Ihrr.nt.pr1 10 f,:.4 t nis(11.141 up *I 1414IIIMAN4 ,tram(Ain0 I$U I Agin)+i v Aim 1*01 014),0p0 pal G4i414uw11 Min lllrtirlaeil 1S,000 I1wtl . AMA UMW tr Il 1,000 Um 1nIrtnat 1 nnniuo Resnlaacr 6,1190 pal 7-5/8"BTC Estimated M/U Torque Casing OD Est Torque to Reach Triangle Base 7-5/8" 7,630 ft-lbs 15.10 Lower string and land out in wellhead. Confirm measurements indicate the hanger has correctly landed out in the wellhead profile. 15.11 R/U circulating equipment and circulate the greater of 1 x casing capacity or 1 x OH volume. Elevate the hanger offseat(slightly)to avoid plugging the flutes. Stage up pump slowly and monitor losses closely while circulating. 15.12 Continue circulating until required properties achieved for cmt operations. 15.13 After circulating, lower string and land hanger in wellhead again. Page 27 Revision 0 Jan, 2012 11 Swanson River Unit 24-15 Drilling & Completion Procedure Hil rp Emily Compaq 16.0 Cement 7-5/8" Cement Procedure 16.1 Hold a pre job safety meeting over the upcoming cmt operations. Make room in pits for volume gained during cement job. Ensure adequate cement displacement volume available as well. 16.2 R/U cmt head(if not already done so). Ensure top and bottom plugs have been loaded correctly. 16.3 Pump 5 bbls 13.5 ppg spacer. Close low torque on plug dropping head,test surface cmt lines to 4000 psi. 16.4 Pump remaining 35 bbls 13.5 ppg spacer. Drop bottom plug. 16.5 Mix and pump slurry per below recipe. 16.6 Cement volume based on annular volume+50%open hole excess. Section: Calculation: Vol (BBLS) Vol (ft3) tit 3 srs LEAD: (9500'-4000')x .038 bpf x 313.5 1760 9-7/8"OH x 7-5/8"csg: 1.50= Total Lead: 313.5 bbls 1760 ft3 !•s {c-75- TAIL: 1000' x .038 bpf x 1.50= 57 320 9-7/8" OH x 7-5/8"csg: TAIL: 90' x .046 bpf= 4.1 23.2 .SX—S 7-5/8" Shoe Track: Total Tail: 70.6 bbls 396.2 ft3 t. 3s."" 4-t 24'r Page 28 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling & Completion Procedure Hilcorp I:nc v Comp. Slurry Information Lead System Conventional Conventional Density 14 lb/gal 15.3 lb/gal Yield 1.58 ft3/sk ../ 1.35 ft3/sk V Mixed Water 8.09 gal/sk 5.912 gal/sk Mixed Fluid 8.09 gal/sk 5.962 gal/sk Expected Thickening 5:30 HR:MIN 4:00 HR:MIN Expected ISO/API Fluid Loss 13 mL in 30 min Code Description Concentration Code Description Concentration G Cement 94 lb/sk WBWOB G Cement 94 lb/sk WBWOB D110 Retarder 0.05 gal/sk D110 Retarder 0.05 gal/sk VBWOC VBWOC Additives D046 Anti Foam 0.2%BWOB D046 Anti Foam 0.2%BWOB D020 Extender 4.0%BWOB D202 Dispersant 1.5%BWOB D065 Dispersant 0.3%BWOB D400 Gas Control Agent 0.8%BWOB D800 Retarder 0.2%BWOB D154 Extender 8.0%BWOB D174 Expanding Agent 1.5%BWOB 16.7 After pumping cement, drop top plug and displace cement with mud. Use the cement unit to displace with as volumes can be tracked much more accurately. Displacement calcs: • 10,410' x .0459 bpf=477.8 bbls. • Displace with 9.5 ppg 6%KC1/PHPA drilling fluid (if possible). 16.8 Monitor returns closely while displacing cement. Adjust pump rate if necessary. 16.9 Do not overdisplace by more than %2 shoe track volume. Total volume in shoe track is 4.1 bbls 16.10 There should be no cmt returns to surface. TOC is planned to be at 4000' MD. ''r 16.11 Bump the plug with 500 psi over displacement pressure. Bleed off pressure and confirm floats are holding. If floats do not hold,pressure up string to final circulating pressure and hold until cement is set. • If this is the case,monitor the pressure on the casing and do not let it exceed 500 psi over the final pump pressure. Bleed off pressure occasionally as necessary. Page 29 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure = 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 success or problems during the cement job 16.12 R/D cement equipment. Flush out wellhead with FW. 16.13 Back out and L/D landing joint, flush out wellhead with FW. 16.14 M/U pack-off running tool and pack-off to bottom of landing joint. Set casing hanger pack-off. Run in lock downs and inject plastic packing element. Test void to 250/3000 psi for 10 min. 16.15 Lay down landing joint and pack-off running tool. 16.16 Reduce MW in active pits from 12.8 ppg to 9.5 ppg. 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. 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. Note: 9.5 ppg was chosen as the starting MW for SRU 24-15 to stay as close as possible to formation pressure (which is expected to be 5.5 ppg) but still allow for adequate suspension of cuttings and LCM. Wellbore instability is not perceived to be an issue at 9.5 ppg. The only formation that exceeds a 9.5 ppg gradient would be the lower Tyonek water sands. These formations are expected to occur from 7,119'to 9,710' TVD, so it is not expected that we will have communication with these formations with 7-5/8"casing set at 10,340' TVD. Page 30 Revision 0 Jan,2012 111 Swanson River Unit 24-15 Drilling &Completion Procedure Hil e Can NET The lower Tyonek water flow has been observed with gradients as high s 13.1 p� S tit. t V-/S .rc .1 EMW. Lower Tyonek is now mapped for the Swanson River Field, comp eted by Kevin E. �, '�,,��, ,7 Differential sticking of the drill string and the production casing significantly increases with /1? I"" increasing mud weights. The differential pressure across the Hemlock interval (10,946' TVD) ✓ with a 9.5 ppg MW is 2407 psi however increasing the mud weight to 12.8 ppg would increase the differential pressure to 4285 psi, an increase of greater than 70%. 16.17 L/D 5"DP from derrick(if not L/D on trip out of hole). 16.18 P/U and rack 4"DP. 16.19 Install 4"liners in mud pumps. PZH pumps are rated at 5000 psi and 144 gpm @ 110 spm with the 4"liners. 17.0 Drill 6-3/4" Hole Section Page 31 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure lima Hilcorp Compaq 17.1 Remove 5"& 7-5/8"casing rams from BOP. Install 4"fixed rams in top cavity&2-7/8"X 5" VBRs in lower cavity. Test BOPs on 4"and 5"test joints. 17.2 Pull test plug, run and set wear bushing. 17.3 P/U 6-3/4" directional drilling assy consisting of: • 6-3/4"PDC bit(Baker Hughes QD505X). • Mud Motor(1.18 deg) • Non-Mag Stab (6-5/8"OD) • NMPC • NaviGamma(D&I, +Gamma Ray) • (3)Non-Mag Flex collars • XO • (5)4"HWDP • Dailey Jar • (21)4" HWDP • 4"DP to surface. 17.4 BHA Components have been inspected previously. 17.5 Drift& caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. 17.6 Ensure TF offset is measured accurately and entered correctly into the MWD software. 17.7 Confirm that the bit is dressed with a TFA of 0.46 sqin. Have DD run hydraulics models to ensure optimum TFA. We want to pump at 350 gpm. 17.8 Motor AKO should be set at 1.18 deg 17.9 Primary bit will be the Baker Hughes QD505X. Spec sheet attached on next page. Page 32 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp roam/Comte ir/Pdaiii . She:l 6 3/4" QD505X j 1r.i BAKER (171.5 min) u a n +l e c LJ HUGHES • Appliratioe Quante:Directional PDC bit:combine.the very latest in HCC bit technology:Best in Class•tuner Echnol•_gv,superior stability lie and hydraulic effi:ien-v • ethe pith a de ten philosophy that is tailored!:yelir drilling objectives.Design_are customized TO achieve continual patte:n.un e improvement in The TOIL_'iie r vplicatirrzs while vr,,' 4 r n i,tiang bit vibration for enhanced tool life. • Di AMU od Volume?sian age Men tDiamond Volume Management (Dt 2 r designs ensure that neither ROP or stability is campromized in the birdeein.Profile and:-user placement a:e glared to the a lt-aticn t )1 s t„ - in orde TO 3 iete the Ion nest ran length at high overall ROP. • Qnnnter C urter:Quantec caress effe:Le vvylatest intechnology. Optimized diamond feed and engineered non-plane.-interfaces combine ri IC give super:wet TeiliT7C.Ze and mustarding toughness.Speak to your HCC rep for the curer best suird to your application. �+aw�`rrauo • C-Doge Prot ECtioi High 4ualty TSP material is utilized to give superior wear resistance and thus lan g bit runs.Optional Hex-shaped.SP material allows tighter packing for ultra abrasive en ircmmenti. • QD Gauge De-igu Engineers select gauge lengt.and gauge geometry to meet dogleg,hole quality and system spacfr re•qui:ementi. Reference Photo: C-;4ir:. (171.5mm)QD50:X Product tSper' »ms IADC: M323 •- Number of Blades: 5 C;tret Quantity.7.etal,Face): 38,13 Prir.nyCutter Size 625 in(15.8 mm) 2Amiber of Nozzles: 2:ezzle Type: 2d5P Fixed FA 0 iii(0.0 mm') !�It. 11111 usage Length 1.5 in(38.0 Dam) Junk Slot Area Sin: 51,6 cm=, tow ' Bit Breaker: C Connection: 3-1.2 API REG Makeup.orgue. 4 1 8'Bit Sub 5-2-5.7 kft-lb(7.1-7 7 k2<m) 4 1'4'Bit Sub 63-7.0 kft-lb(8.5-9.5 kNniy 4 1 2'—Bit Sub 7:7-8.5 kfr-lb(10.4 11 5 kbW Reference Part Number: 2:5856 Operating Recommendations': Hhdraulic Flaw Rate: 2 50-550 gpm(950-2100 1pm) Rotation Speed. Fee Rotary 311d Motor Application,: Max.Weight On Bit: 20klb(9 to orkdad:) 17.10 TIH to TOC. Shallow test MWD on trip in. Page 33 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hil 17.11 Test casing to 3000 psi/30 min. Ensure to record pressure vs volume plot to compare with FIT. 17.12 Drill out shoe track and 20' new formation. 17.13 CBU and condition mud to 9.5 ppg in/out for FIT. d 17.14 Conduct FIT to 12 ppg EMW. Note: Offset field test data predicts frac gradients at the 7-5/8"shoe to be bwtn 14.4 ppg and 15.4 ppg. A 12 ppg FIT results in a 2.5 ppg kick margin while drilling the interval with a 9.5 ppg fluid density. 17.15 Drill 6-3/4" hole to 11,710' MD using above 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 HTHP fluid loss <9. • Take MWD surveys every stand drilled. 17.16 Hilcorp Geologists will follow LWD log closely to determine exact TD. Plan on drilling to a maximum of 11,710' MD/ 11,458' TVD. 17.17 At TD; pump sweeps, CBU, and pull a wiper trip back to the 7-5/8" shoe. 17.18 TOH with drilling assy, handle BHA as appropriate. Drop drift on trip out. 17.19 R/U and run OH logs consisting of: • Gamma Ray(GR) • Dual Spaced Neutron (DSNT) • Spectral Density Tool (SDLT), includes single axis caliper • X-Y Cross Dipole Sonic • • Array Compensated Resistivity Tool (ACRT)—5 depths of investigation, includes Spontaneous Potential response (SP). 17.20 Make a clean out run again to TD (if necessary). Utilize same (or very similar) BHA design to what was used to drill the well. This trip is discretionary, and will be determined by actual hole conditions. Page 34 Revision 0 Jan,2012 Swanson River Unit 24-15 �p�p Drilling &Completion Procedure BMA 18.0 Run 5" Production Liner 18.1 M/U and rack cement stand in derrick. • Ensure to drift components prior to M/U. Ensure dart will pass through components. • Confirm largest OD of packer assy will pass through wear bushing. 18.2 Install and test 2-7/8"x 5"VBR in lower cavity if not done previously. 18.3 R/U Weatherford 5"casing running equipment. • Ensure 5"DWC/C HT x 4"HT-38 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 on the deck prior to running. • Be sure to count the total#of joints on the deck 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. 18.4 P/U shoe joint,visually verify no debris inside joint. 18.5 Continue M/U&thread locking shoe track assy consisting of: • (1) Shoe joint w/shoe bucked on &threadlocked (coupling also thread locked). • (1)Joint with float collar bucked on pin end &threadlocked (coupling also thread locked). • (1)Joint with landing collar installed INSIDE pin end. • Solid body centralizers will be pre-installed on shoe joint&FC joint. • Install a solid body centralizer on landing collar joint. Leave centralizers free floating so that they can slide up and down the joint. • Ensure proper operation of float shoe. 18.6 Continue running 5"prod 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 joint to 10,700' MD. Leave the centralizers free floating. • Utilize a collar clamp until weight is sufficient to keep slips set properly. 5"DWC/C HT M/U torques Casing OD Minimum Maximum Yield Torque 5" 8,400 ft-lbs 9,400 ft-lbs 12,500 ft-lbs Page 35 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp Emmy comp®r Technical Specifications Connection Type: Slze(O.D.): Weight(Wall): Grade: DWC/C-HT Casing 5 in 15.00 Ib/ft(0.296 in) L-80 standard Material 1 L-80 Grade 80.000 Minimum Yield Strength(psi) wpavisnacegiw U S A 95:000 Minimum Ultimate Strength(psi) VAM-USA 4424 W.Sam Houston Piny.Suite 152 Pipe Dimensions Houston,TX 77041 5.000 Nominal Pipe Body O.D.(in) Fax 713.478-3234 4.408 Nominal Pipe Body I.D(in) E-mark 0.296 Nominal Wall Thickness(in) 15.00 Nominal Weight(Ibs/It) 14.88 Plain End Weight(lbs/R) 4.374 Nominal Pipe Body Area(sq in) Pipe Body Performance Properties • 350,000 Minimum Pipe Body Yield Strength(Ibs) 7,250 Minimum Collapse Pressure(psi) 8,290 Minimum Internal Yield Pressure(psi) 7,600 Hydrostatic Test Pressure(psi) Connection Dimensions 5.563 Connection O.D. (in) 4.408 Connection I.D.(in) 4.283 Connection Drift Diameter(in) s.( 4.06 Make-up Loss(in) 4.374 Critical Area(sq in) 100,0 Joint Efficiency(%) y;. Connection Performance Properties 350:000 Joint Strength(Ibs) 16,670 Reference String Length(ft) 1.4 Design Factor 379,000 API Joint Strength(Ibs) 350,000 Compression Rating(Ibs) 7,250 API Collapse Pressure Rating(psi) 8,290 API Internal Pressure Resistance(psi) 73.5 Maximum Uniaxial Bend Rating Idegrees(100 ft) Appoximated Field End Torque Values 8,400 Minimum Final Torque(ft-lbs) 9,400 Maximum Final Torque(ft-lbs) 12,500 Connection Yield Torque(It-Ibs) For detailed information on performance properties,refer to DWC Connection Data Notes on following page(s). Connection specifications within the control of VAM-USA were correct as of the nate printed,$pecifratlnne are sub,,ect to change w.ihouc notice.Certain connection specifications are dependent on the mechanical prooertes of the pipe Mechanical properties of mill pro prietary pipe grades were obtained f*om mill publications and are subject to change.Properties of mill proprietary grades Should he confirmed with the mild.Users are advised to Obtain current connection specitcatione and verify pipe mechanical properties for each application. 18.7 Ensure to run enough liner to provide for approx 200' overlap inside 7-5/8"casing. Ensure hanger/pkr will not be set in a 7-5/8"connection. 18.8 Before picking up Baker ZXP liner hanger/packer assy, count the# of joints on the pipe deck to make sure it coincides with the pipe tally. Page 36 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling & Completion Procedure Hilcorp Ewa cump.oy 18.9 M/U Baker ZXP 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. 18.10 RIH one stand and circulate a minimum of one liner volume. Note weight of liner. 18.11 RIH w/liner on DP no faster than 1-1/2 min/stand. Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 18.12 M/U top drive and fill pipe while lowering string every 10 stands. 18.13 Slow in and out of slips. 18.14 Circulate 1-1/2 drill pipe and liner volume at 7-5/8" shoe 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. Nominal liner hanger setting pressure is 2500 psi. 60% of this value is 1500 psi 18.15 Obtain up and down weights of the liner before entering open hole. Record rotating torque at 10, 20, &30 rpm. 18.16 Continue to fill the DP every stand down using fill up line on rig floor. Do not stop to fill casing. 18.17 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. 18.18 Stage pump rates up slowly to circulating rate without exceeding 60% of the liner hanger setting pressure(1500 psi). Circ and condition mud with the liner on bottom. Reduce the low end rheology of the drilling fluid by adding water and thinners. 18.19 Reciprocate& rotate string if hole conditions allow. Circ until hole and mud is in good condition for cementing. 19.0 Cement 5" Production Liner 19.1 Hold a pre job safety meeting over the upcoming cmt operations. 19.2 Attempt to reciprocate the liner during cmt operations. Page 37 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling &Completion Procedure 11COrey 19.3 Pump 5 bbls 12 ppg MUDPUSH II spacer. 19.4 Test surface cmt lines to 4500 psi. 19.5 Pump remaining 15 bbls 12 ppg MUDPUSH II spacer. 19.6 Mix and pump 15.3 ppg class "G" cmt per below recipe. Ensure cmt is pumped at designed weight. Job is designed to pump 100%OH excess. Cement Calculations 7-5/8"x 4 DP"Overlap: 200' x 0.03 = 6.1 bbls 7-5/8"x 5"Liner Overlap: 200' x 0.022 = 4.4 bbls 6-3/4"OH x 5"Liner: (11,710— 10,500')x 0.020 x 2 = 48.4 bbls Shoe Track: 90' x 0.019= 1.7 bbl Total Volume(bbls): 6.1 + 4.4+ 48.4+ 1.7= 60.6 bbls Total Volume(ft3): 60.6 bbls x 5.615 ft3/bbl= 340 ft3 Total Volume(sx): 340 ft3 / 1.35 ft3/sk= 252 sx Slurry Information: System Conventional Density 15.3 lb/gal Page 38 Revision 0 Jan,2012 11 Swanson River Unit 24-15 Drilling &Completion Procedure �1�CO1p Yield 1.35 ft3/sk Mixed Water 5.912 gal/sk Mixed Fluid 5.962 gal/sk Expected Thickening 100 Bc at 05:57 hr:mn Expected ISO/API 15 mL in 30.0 min at 175degF/ 1000 psi Fluid Loss Code Description Concentration G Cement 94 lb/sk D198 Retarder 0.4%BWOC Additives D046 Anti Foam 0.2%BWOC D202 Dispersant 1.5%BWOC D400 Gas Control Agent 0.8%BWOC D154 Extender 8.0 %BWOC D174 Expanding Agent 1.5%BWOC 19.7 Drop DP dart and displace with 9.5 ppg drilling fluid. 19.8 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. 19.9 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. 19.10 Bump the plug and pressure up as required by Baker procedure to set the liner hanger(20% above nominal setting pressure. 2500 psi is nominal setting pressure. Pressure up to 3000 psi to confirm hanger setting. 19.11 Slack off total liner weight plus 20k to confirm hanger set. 19.12 Do not overdisplace by more than V2 shoe track. Shoe track volume is 1.7 bbls. 19.13 Pressure up to 4200 psi to release the running tool (HRD-E) from the liner. 19.14 Bleed pressure to zero to check float equipment. 19.15 P/U,verify setting tool is released, and expose setting dogs on top of tieback sleeve. 19.16 Rotate slowly and slack off 50k downhole to set the ZXPN liner top packer. Page 39 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp 19.17 P/U to P/U weight plus 1 ft. 19.18 Close annular and test 4"DP x 7-5/8" annulus to 1500 psi / 10 min to test liner top packer. 19.19 Bleed off pressure, open up annular. 19.20 Pressure up to 500 psi down DP and pick up to remove the RS packoff bushing from the RS nipple. Bump up pressure as req'd to maintain 500 psi DP pressure while moving pipe until the pressure drops off rapidly, indicating pack-off is above the sealing area(ensure that 500 psi will be enough to overcome hydrostatic differential at liner top). 19.21 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. 19.22 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. 19.23 Watch for cement returns and record the estimated volume. Rotate & circulate to clear cmt from DP. 19.24 POOH, verify the liner top packer received the required setting force by inspecting the rotating dog sub. Backup release from liner hanger: 19.25 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. 19.26 NOTE: Some hole conditions may require movement of the drillpipe to "work"the torque down to the setting tool. 19.27 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. 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 Page 40 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Heil • 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 success or problems during the cement job 20.0 Wellbore Clean Up & Displacement 20.1 M/U casing clean out assy complete with casing scraper assys for each size casing in the hole. • 4-1/4"bit or mill • Casing scraper&brush for 5" 15#casing (MI Swaco -Multiback) • +/- 1400' 2-7/8"workstring. • Crossover(No PBR Polish Mills) • Casing scraper&brush for 7-5/8"29.7#casing(MI Swaco -Multiback) • (5000') 4"HT-38 DP. • Casing scraper&brush for 7-5/8"29.7# casing(MI Swaco - Multiback) • 4"HT-38 DP to surface. 20.2 TIH& clean out well to landing collar(+/- 11,600' 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 4-1/4"bit is worked down to the landing collar. • Space out the cleanout BHA so that the 4-1/4"bit reaches the 5" landing collar when crossover is+/-30' above the 5"liner top. • The primary objective of the clean out run is to ensure the TCP assy will reach intended depth. 20.3 After wellbore has been cleaned out satisfactorily using mud,test casing to 3000 psi/30 min. 20.4 Displace drilling fluid in wellbore with a hi-vis pill followed by fresh water. • Catch drilling fluid in rain-for-rent tanks for use on a future well. • Circulate fresh water into wellbore until clean up is satisfactory. Do not recirculate fluid, • After a couple circulations using FW, short trip the assy to bring the upper 7-5/8"multi-back assy to surface. • RIH again &tag landing collar w/4-1/4"bit. Continue circulation as necessary until fluid cleans up. Make another short trip if necessary. Page 41 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure 1]c�p Emily • Pump a chemical train followed by 6%KC1 after fluid has cleaned up satisfactorily. Target NTUs are 80 - 100. 20.5 TOH w/clean out assy. LDDP on the trip out. Note any abnormal wear on the mill assy. 21.0 RDMO 21.1 Install tubing hanger&back pressure valve. N/D BOP. 21.2 N/U temp abandonment cap. 21.3 RDMO Arctic Fox. 21.4 After rig has departed, run CBL to determine TOC behind 5"production liner and 7-5/8" intermediate casing. Page 42 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling & Completion Procedure Hmy i lcorp Ene Comport 22.0 BOP Schematic tat 1c1 1111111V 1111 • Mayon Drilling _„ ,,;,t 1I'51+ f-iydril V E#OF' rill tai 1 8 1 1 0 1l i - Hydrif V . 3-1.r 5M HCR —" • - — Valve 4 3-1 E-5M HCE 4 Valve. 11./6'4 1611111/1 111 111 = Kill la: l',11 CYor Lire �iei lei 1st 1s1 rii: 3. ► Lire 3-1 E-5M- 3-1,'S-`: 1. aMarx,31 N,:al—i Hydru V Ux,R.l._.Elve t_..—..- 1 1 -,6U9L -- lir ,I w1.11w01111111. Grade,I t caI III i1 N_1 1! 121 S ace, xx P 1r5 11 SM X 11 5M oil IN IiNlil 111 .G r Ei• Seribmitd-1•Ii3S syttetri i. 7i' : : o 1E1143MX115M � "f }II:a 1 - cif Pb 41 Lm , 'L I- —Ifll ) ■ 1 r-To.Ir *41 V ' IloWit " • Page 43 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling & Completion Procedure HilCO1p Et,.w/Cowan. 23.0 Wellhead Schematic HIL::C;I<P ALASKA, LLC SWANSON RIVER 0 HO-28489[) +l cm ,T1•1 MINIM 1 ~ 3-1/d 541 'lel .....:= 1 143 3-1/6 w ' 3-1/B 16, 11 SM 3-1/6 5M—..I1� I-"O liTl ADAPTER.WA-E-2CLAI 1 _ .11;/-11 SM X 3--1/5 314 TANG HANGER.SM-E-2CL-jimu1 ---! '-.. .,,Q 11 x 3-1/2 API NM 80x 81I4 _11 5N X 3-1/2 D:ORD BOX TCF ' .1 ii i• - 1 it _. !al.! � � X 7-5/8 � 1•. � 2-11 !6 'al-0-ii•4,..._ov-A41_a:>.;Ev LY 'iy ....1.1 .0-3/4 IFS % I •,l 1 .1 CASING HANGER.514 •8-22 1 2-1/76 Su 16-3/4 x 10-3/4- . j 0 '8-3/4 9A W/RFLMARY SEAL. - 1 • 16 CASING _ 2-t/16 541 1L•-3/4 CASING—.-- ,, 7-5/e CASING ` WRNS RNS ..1 'SEEADOWI D 5.000 fig WELLHEAD t 1REE ASSEMBLY 1.8 x ID-3/4 x '7-9/8 x 1-1/2 cESTR161ED CO1IFlCEN1I+1 DOCUNEN1 . . .,....___ t k' L.l r41p.lria f RI 1—"2 I.49.W4E12 mx Page 44 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp Energy Compaq 24.0 Days Vs Depth a 2000 - 4000 — -- - a 8 soap 10000 — —_ — 12000 __. _ — ♦♦ ♦ ♦M ♦ •♦ *• 14003 — - a 5 10 15 20 25 30 35 40 Days Page 45 Revision 0 Jan,2012 11 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp Uncap.Cu rip. 25.0 Geo-Pro r GEOLOGICAL PROGNOSIS WELL NAME: SRU 24.15 FIELD: I Swanson River �X=350723.4 LONG:-150.8352C(SRU 234-15 Pad STATE: I Alaska Y=2477868.1 LAT:60.7797000 , BOTTOM HOLE X=349329.5 LONG:-150.84229888 TVD REF DATUM; KB Y=2477738.4 LAT. 4 60.7792966 TVD REF ELEV ' 310 18.6'KB(Arctic Fox) COURD REF. SYSTEM NAD27 GROUND ELEV 291 PROPOSED TD: 11,700'MD/11,461'TVD Objective: Drill deviated grassroots Hemlock well WI GL Completion to test H1-5 between 14-15&234-15 Hemlock BHL's - Geo Summary/ Justification: Integrated subsurface and 3-D geological interpretations,in conjuction with previous production data indicates that stranded oil reserves remain in the Hemlock 1-5 benches south of the H fault. H1-H5 reserves aren't recoverable in existing wellbores due to lack of takepoints or mechanical condition of other existing wellbores in the fault block. 14-15 was a mechanical/completion failure and only produced 15 MBO CUM. ANTICIPATED FORMATION TOPS&GEOHAZARDS EXPECTED Critical Intersection Points TOP EA-tMJ TOP NAME FORMATION FLUID VT D(FT2 TVDSS(FT) Thickness Est,Pressure X Y / MO 1P1 B6 Sterling Sand WATER 3.476 . - 3.166 15 1400-1600 psi 350644.6 2477862.7+1.20' 3.478 ] 8,9 50-6 Beluga Sand WATER 5,058 • 4,748 50 2100-2300 psi same as B6 same as 06 +1-20' 5,060 C. D1CT Tyonek Coal 6.060 • 5,750 25 2500-2700 psi same as 06 same as B6 +/-20' 6,062 0,e,,, 68-0 Tyonek Sand WATER 7,119 6,809 50 3000-3200 psi sane as B6 same as B6 +1-30' 7,121 e 7 77-3 Tyonek Sand WATER 8.036 7.726 30 3400-3600 psi ' 350604.5 2477856.0+1-30' 8,040 g_L TYNK_HiP_H20 Tyonek Sand WATER 9.710 9.400 30 up to 5500 psi y 349995.8 2477802.5+1-50' 9.824 0.1 ✓ G2 Tyonek Sand WATER 10.742 • 10,432 _ 30 3000-3800 psi 349601.2 2477762.4+/-30' 10,930 / °e HKT Top Hemlock Oil OIL 10.790 • 10,480 15 2500-3000 psi 349587.8 2477762.4+1-30' 10,980 I-74 H3-5 Hemlock Oil OIL 10,850 • 10,540 80 2500-3000 psi 349561.1 2477762.4+I-30' 11,046 3-, H7-8 Hemlock Oil OILMIATER 10,946 • 10,636 20 2500-3000 psi 3.49527.6 2477755.7+1-30' 11,148 1 a H10 Hemlock Oil WATER 11,112 . _ 10,802 20 2500-3000 psi 349460.7 2477749.0+1-30' 11,326 1 S L TD Lower Hemlock 11,461 , 11.151 See BHL See BBL 11,700 I -Primary Objective a 13 =Secondary Objective 0,LS TARGET RADIUS 100 FT @ the Hemlock level DATA COLLECTION REQUIREMENTS: Mud Logging: 2 mudloggers monitoring gas on surface hole. Full crew of 4 on for intermediate and production hole sections. LWD Data: GR for Intermediate&Production Hole sections E-Line Log Data: Quad Combo in Intermediate and Production hole sections COMPLETION TYPE Gas lift completion ANTICIPATED RATES 2000 bpd gross fluid ARTIFICIAL LIFT EQUIPMENT OD TUBING SIZE 3.5" OTHER COMMENTS 1.We are uncertain as to the extent of the Tyonek Hi Pressure water sand. I present,our best correlation is represented in the geoprog depth pick. 2.The D1CT coal is the thickest,most continuous coal in Swanson River. We expect it to be approximately 25'thick at this location We expect about 25 other mappable coals(5-15 ft thick)in a 2200'thick interval stretching-350'above and 1850'below the D1CT top 3.We do not anticipate crossing any significant faults that would pose drilling problems. 4.We do not anticipate any shallow gas hazards as there was no Sterling or upper Beluga production from the 234-15 or 14-15 wells Page 46 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Iii ce 26.0 Anticipated Drilling Hazards 13-1/2" Hole Section: Lost Circulation: Ensure 500 lbs of BaroFibre (Fibrous Cellulosic 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. Maintain l Oppb total of BaraCarbs/Barofibre/Steelseal while drilling the interval to control any seepage losses. Hole Cleaning: Maintain rheology w/Aquagel &Barazan D+. Sweep hole w/20 bbls Barazan D as necessary. Optimize solids control equipment to maintain density, sand content, and reduce the waste stream. Maintain YP btwn 25—40 to optimize hole cleaning and control ECD. Wellbore stability: Maintain l0ppb total of BaraCarbs/Barofibre/Steelseal to strengthen wellbore. H2S: H2S is not present in this hole section. 0/ No abnormal pressures or temperatures are present in this hole section. 9-7/8" Hole Section: Lost Circulation: Ensure 500 lbs of BaroFibre(Fibrous Cellulosic 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. Maintain l Oppb total of BaraCarbs/Barofibre/Steelseal while drilling the interval to control any seepage losses. Hole Cleaning: Maintain rheology w/Aquagel & Barazan D+. Sweep hole w/20 bbls Barazan D as necessary. Optimize solids control equipment to maintain density and minimize sand content. Maintain YP btwn 13 - 20 to optimize hole cleaning and control ECD. Wellbore stability: Maintain l Oppb total of BaraCarbs/Barofibre/Steelseal to strengthen wellbore. Maintain MW as necessary using additions of Barite. Filtrate control in the <6 range is required. Maintain additions of PAC L/Dextrid LT to maintain API fluid loss of<6. Maintain 6%KC1 in system for shale inhibition. Page 47 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hulco p .. Comm, 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 (BARO-TROL PLUS 4 ppb). • Increase fluid density as required to control the running coal. • Emphasize good hole cleaning through hydraulics, ROP and system rheology. In the event that sloughing coal is encountered, consider spotting a 30 ppb BAROTROL pill across the coal seam. The pill can be safely "squeezed" into the coal by closing the bag and applying pressure not to exceed the total annular pressure loss. Overpressured Lower Tyonek Waterflow: Maintain MW at a minimum of 12.8 ppg with additions of barite from 6000' to section TD. H2S: H2S is not present in this hole section. No abnormal temperatures are present in this hole section. 6-3/4" Hole Section: Lost Circulation: Ensure 500 lbs of BaroFibre (Fibrous Cellulosic 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. Maintain l Oppb total of BaraCarbs/Barofibre/Steelseal while drilling the interval to control any seepage losses. Hole Cleaning: Maintain rheology w/Aquagel & Barazan D+. Sweep hole w/20 bbls Barazan D as necessary. Optimize solids control equipment to maintain density and minimize sand content. Maintain YP btwn 13 - 20 to optimize hole cleaning and control ECD. Wellbore Stability: Maintain 1Oppb total of BaraCarbs/Barofibre/Steelseal to strengthen wellbore. Maintain MW as necessary using additions of Barite. HTHP control in the <5 range is required. Maintain additions of PAC L/Dextrid LT to maintain API fluid loss of<5. Maintain 6%KC1 in system for shale inhibition. Page 48 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hw ilcorp Pa Commy 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 (BARO-TROL PLUS 4 ppb). • Increase fluid density as required to control the running coal. • Emphasize good hole cleaning through hydraulics, ROP and system rheology. In the event that sloughing coal is encountered, consider spotting a 30 ppb BAROTROL pill across the coal seam. The pill can be safely "squeezed" into the coal by closing the bag and applying pressure not to exceed the total annular pressure loss. H2S: H2S is not present in this hole section. No abnormal pressures or temperatures are present in this hole section. Page 49 Revision 0 Jan, 2012 i Swanson River Unit 24-15 Drilling & Completion Procedure Hiicorp 3'nc-rr Cnmpr s 27.0 Rig Layout z -1c1-(2b.16m1 57-7 It6.flwl YE g or y 073 R �rr E. 4 t :11I _m' ail mmn I 10„d • 1— �1l.uuuun i lly■ IIIIIIIIIIIIIII •1 �7;�: ; +-,i i-" ++T — !I.o ■ 7 i _i.■ IFS ■rms.■�1 I;, _� u�■■■.��.a -,iii _ ■. a i........1111111111 II��1�=� f. 'Q'';1l1■■Ilr.iM.1(=1= (11 .r: wi • i� iUni ).: D EY !Mg. 4e -- -....;:a --- lilt r iw map _gin:' ;_'_' :: — ___,. ��� "� gala!4 111=.4.....----.. _--. ._i4k.'I I ---- ____ 117 CI j a ❑ ao W c ' . ■■�cilu Lii 1 fra ' R a to rn�+1 g atyzmp C7 A „T. .nr r■�;�i Lir I R m 1".ai+tom-''~� �! �� �� " 1;5 Ii . cs uC_ Ci � - = c .�,,. I r-m 0 X SA vi rac I nEdX VI f1 .4-a M _ - --- iliI��1� M W-1 • ..I is �a ■b 1 !. •.��I % gym, f 4 . .1I I 9.7 - 2 i- • -I> QR A vx hem • w t •t in gt V to c j. .0'n N r' r 74 44•.10"i13,55m Page 50 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure HwCompaq eorp 28.0 FIT Procedure Formation Integrity Test (FIT) and Leak-Off Test (LOT) Procedures Procedure for FIT: 1. Drill 20'of new formation below the casing shoe (this does not include rat hole below the shoe). 2. Circulate the hole to establish a uniform mud density throughout the system. P/U into the shoe. 3. Close the blowout preventer(ram or annular). 4. Pump down the drill stem at 1/4 to 1/2 bpm. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) vs. drill pipe pressure until appropriate surface pressure is achieved for FIT at shoe. 6. Shut down at required surface pressure. Hold for a minimum 10 minutes or until the pressure stabilizes. Record time vs. pressure in 1-minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. The pre-determined surface pressure for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measures are required. Where required, the LOT is performed in the same fashion as the formation integrity test. Instead of stopping at a pre-determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with an FIT. Page 51 Revision 0 Jan,2012 II Swanson River Unit 24-15 Drilling & Completion Procedure Hilcorp Em my Comm? 29.0 Arctic Fox Choke Manifold Schematic LEDGEND VW&7AK!TA JV White Handle Valves .--0— Normally Open S ' Red Handle Valves Normally Closed '0 TO FLpRS s_8i ,... 11 0- , M Bop STACK 4 ' FR 1- M .11?' 40" TO FI- V� PITS 1 4 0 B 1 4:15j TO oEGAgSER MATERIAL LIST ■ Item Des cri•tion A 3-1/16"10M Remote Operated Hydraulic Choke MI3-1/8"5M Adjustable Choke 1 2.1/16"5M Manual Gate Valve " AD 2-14 3-118"5M Manual Gate Valve i . ,4ACTIC F[IX Page 52 Revision 0 Jan, 2012 II Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp Cram Campaa7 30.0 Casing Design Information Calculative'&Casing Design factors 4411.124 11 Raul Peetnsula.AK WELL 00U 3416 FIELD:.Swansea River Dart 4-Jen-1) DE:m 11 6 r Luae Refer $W 1 0-7$'We MVP WT. 12.500 PPG MASP. 1300 Pe+ Sect.2 6-34'Tel MUD I T Si SO PPG LIASP. '34O psi TENSION MINIASPA COLLAPSE COLLIE WEIOnT TOP Of 1-MENOTTI PRESSa RES9ST M0"11.1i1 DESCRIPTION WOOF SECTION TENSION WORST CASE BOTTOM Sao TENSION WORST CASE MASP YIELD WORST CASE =MR P..2440- 1101/2111 IDE J ru0nn Jai. >laiLIE 17,8E!4 1,85 1.715 15041,0: sT UBSX21I f5! e2 Sf[9lL pal Z` SEMARSI 1 113-314' 3006 0 3.006 155 1-66 610 036.5611 136.600 1040 763 1 434 .450 1.73 :.197 5210 326 7•.m 1 Ooc a 2 7.570' 7.060 0 7,600 207 1.30 BT0 207.P00 311,450 603 210 3,345 4774 1.43 1,999 61+90 3,00 ND 6 tie u 5 7.541 00.500 7000 3500 29 7 P-110 NC BTC 003,050 105,950 749 7.40 4254 7.500 111 1,980 4.470 6.01 ND 10354 6999 4 5- 11710 10300 1,470 15 L4/6 DWCC KT 21,15a 3t.LSO 350 46.46 0,921 7.250 1.64 1,090 5,290 4.35 r4D 11,456 09150 •Col5Pee Deemer Iar section 1 it 2 s cattaaled:Nonni modem enema!Rrea(.47d waft.end the ramp ersou let for Lee 650=o00 seem Co4apee L"esww*e Ina wwtban 3 it 4 6 eetJaled,OYe esewed Tycelee water 9ps era/ma1 etresa(.904 point and Ohe ow*rsacerMI la the nlemal lbws "'See.lamed steel Ice cat.Ytan ee WASP Page 53 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling & Completion Procedure Hilcorp 1:army Comps. 31.0 9-7/8" Hole Section MASP Maximum Anticipated Surface Pressure Calculation Swanson River Unit 24-15 Hilcorp tra Kenai Peninsula,Alaska 9-7/8"Hole Section Assumptions: 1. Max Frac gradient at 10-3/4"shoe(2995'ND)estimated at 15.9 ppg EMW(0.83 psi/ft)based on field test data. 2. Pore pressure at Gas Storage sand estimated at 3300 psi(.513 psi/ft) 3. Pore pressure at Lower Tyonek water flow estimated at 5500 psi(.599 psi/ft) Fracture Pressure at 10-3/4"shoe considering a full column of gas from shoe to surface: 2995(ft)x 0.83(psi/ft)= 2486 psi 2486(psi)-[0.1(psi/ft)*2995(ft)J= 2187 psi MASP from pore pressure(Lower Tyonek Water Flow at 9710'ND) Max pore pressure at 9710'ND: MASP(Wellbore evacuated to water) 9710(ft)x 0.566(psi/ft)= 5500 psi 5500(psi)-[0.4316(psi/ft)*9710(ft)]= 1310 psi Summary: MASP while drilling 9-7/8"hole is limited by pore pressure from lower tyonek water flow at 9710'MD. Page 54 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling & Completion Procedure Hilcorp cnv comma 32.0 6-3/4" Hole Section MASP Maximum Anticipated Surface Pressure Calculation Swanson River Unit 24-15 H tcorp Kenai Peninsula, Alaska 6-3/4" Hole Section Offset Information We Date Hemlock Pressure TVD Grad SRU 21A-34 2009 2975 10683 0.2785 SRU 32A-33 2010 2800 10637 0.2632 SRU 331-27 March,2012 3140 10600 0.296 Assumptions: 1. Max Fracture gradient at 10,354'TVD is estimated at 15.4 ppg EMW(0.801 psi/ft)based on field test data 2. Based on offset drilling&well test data, Hemlock PP is anticipated at 2800-3000 psi(0.278 psi/ft). 3. Reservoir fluid gradient is anticipated at 7,7 ppg. Fracture Pressure at 7-5/8"shoe considering a full column of gas from shoe to surface: 10354(ft)x 0.801(psi/ft)= 8293 psi 8293(psi)-[0.1(psi/ft)"1035400 : 7258 psi MASP from pore pressure Max pore pressure at TD{11,461"TVD) MASP(Wellbore evacuated to gas column) 11,461(ft)x 0.278(psi/ft)= 3186 psi 51BHP-gas gradient to surface 3186(psi)-[0.1(psi/ft)*11461(ft})= 2040 psi I Page 55 Revision 0 Jan, 2012 II Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp Enmity cmnpy 33.0 Directional Program (P2) Ili Planned Wellpath Report ���� SRU 24-15 Version#2 BAKER Page 1 of 8 HUGHES Ni4•°rp Ua+lea.LI,(; REFERENCE WELLPATH IDENTIFICATION Operator Hilcorp Alaska,LLC Slot SRC 24-15 (Area Cook Inlet,Alaska(Kenai Peninsula) Well SRU 24-15 Field —Swanson River Unit Wellbore SRU 24-15 FFacility Pad 234-15(SRU24-15) REPORT SETUT INFORMATION ;Projection System NAD27 I Ti1Alaska SP,Zone 4(5004).US feet • Software System WellArchitectI 3.0.3 Reference True User Jonethoh ,Scale 0.999925 Report Generated 08-Jan-13 at 6:33:23 !Convergence at slot 0.73°West Database/Source file WeL4.rchitectDB/SRU_24-15.xml WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[ft] East(ftj Easting[C S ft] _ Northing[CS ft] 1 Latitude Longitude _ Slot Location I 880.98 -2370.11 350734.09 2477838.20 —1— 60°46'46.627 N 150°50'06.498"W acilixv Reference Pt 353092.80 2476927.69 1 60°4637.954"N 150°4918.765"W Field Reference Pt 347751.98 2471720.96 r 60°45'44.011"N 150°51'04.958'W WELLPATH DATUM Calculation method Minimum curvature Arctic Fox(RTE)to Facility Vertical Datum 307.40ft Horizontal Reference Pt Slot Arctic Fox(RTE)to mean sea level 307.40ft 'Vertical Reference Pt I Arctic Fox(RIE) Arctic Fox(RTE)to Mud Line at Slot(SRU 24-15) 307.40ft e — MD Reference Pt Arctic Fox(R1E) Section Origin N 0.00,E 0.00 ft Field Vertical Reference (mean sea level Section Azimuth 265.57° Page 56 Revision 0 Jan,2012 II Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp Energy Company II Planned Wellpath Report ��� SRI:24-15 Version#2 BAKER Page 2 of 8 MUGHES ilikoep Alaska.1.11 REFERENCE WELLPATH IDENTIFICATION Operator Hilcorp Alaska.LLC Slot SRU 24-15 `Area Cook Inlet Alaska(Kenai Peninsula) Well SRU 24.15 Field Swanson River Unit Wellbore SRU 24-15 ,Facility Pad 23415(SRI.24-15) WELLPATH DATA(126 stations) t-interpolated'extrapolated station 11 Inclination 4amuth'... 11-D 21-D from Vert Sect Nartl.,..La Grid East Grid North Latitude Longitude 11t1 I'1 Pl [f] Fld Veit Ref 1 [f11 it) dtl RR'SM Mild [°!10081 [ft] 0.++i 0.000 265-55 0.00 -307.40+ 0.00 0.00 000 350734.09 2477838.20 604646627°Ni 150°50'06.498"W 0.00 18.50 I. 0.000 265.552 18.50 -288.901 0.00 0.00 0.00 350734.09 2477838.20 60°46'46.627"N 150°50'06.498"W 0.00 0.000 265.552 118.50 -188.901 0.00 0.00 0.00 350734.09 2471838.20 60°46'46.627"N 150°50'06.498"W 0.00 Vi 0.000 265-352 218.50 .88.901 0.00 0.00 0.00 350734.09 2477838-20' 6046'46.62711 150°30'06.4911'W 0.00 418-501 0.000 261552 418.50 111.101 000 0.00 0.00 350734.09 247783820 60°46'46.62714, 150°50'06.498"W 0.00 518.50'1 0.000 265.5521 518.50 211.10' 0.00 0.00 0.00 350734.09 247783820 60°46'46.627111 150°5006.496'W 0.00 618.5011 0.000 265.352 618.50 311.10, 0.00 0.00 0_00 350734.09 247783820 60°46'46.627141 150'5006.498'W 0.00 718.501' 0.000 265.552 718.50 411.101 0.00 0.00 0.00 350734.09 247783820 6046'46.62711 150°5016.498'W 0.00 a air., ."'"i1t iii:. 918.50t 0.000 265.553 918.50 611.101 0.00 0.00 0.00 350734.09 247783820 60°46'46.62717 150°50'06.498"W' 0.00 1018.50t 0.000 261552' 1018.50 711.10; 0.00 0.00 0.00 350734.09 247753820 604646.627'N 1 150°50'06.498"W 0.00 1118501' 0.000265.5521118.50 811.101 0.00 0.00 0.00_ 350734.09 2477838.20 60°46'46.627111 150°50'06.498"W ....00 1218. . 0.000 265.552 1218.50 911.101 0.00 0.00 0.00 350734.09 247783810 60•44146.627111 150°5006.498°W 0.00 7 1418 5+ 0.000 265.5521 1418.50 1111.10, 0.00 0.00 0.00 350734.09 247783820 60°46'46.62714 150°50'06.496'W' 0.00 1500-00 0.000 265.5521 1500.00 1192.601 0.00 0.00 0.00 350734.09 247783820 60°46'46.627'1 150•5006.498"W 0.00 l: 1,D'nl Nudge 1518.5+ 0.185 263.5521 1518.50 1211.101 0.03 0.00 -0.03 350734.06 247783820 60°4646.627'N 150°50'06.498"W 1.00 1618.5+ 1.185 265.552 1618.49 1311.09' 1.23 -0.10 -1.22 6 2 350732.87 2477838.12 60°4646.621: 150°50'06.522°07 1.00 1800.00 1 3.000 265 553 [ _1808 001, 3.000 265 552 1799.86 1492. -0.6 7.85 1 -7.83 33072625 2477837.69 60'4646 621"N 150°50'06.655"W 100 - •of 8m'ld 1 1818.34 151094 882 4.68 -819 350725.29 2417837.62 6046'46.62011 150°5006.675'W 000._..,_. 1918. + 3.000 265.552 1918.20 1610.806 14.05 -1.09 -14.01 350720.07 2477837.29 60°46'46.61611; 150°5006.7$0'W 0.00 Ii 01.11 j1 3.000 2615 0 8.• 7 +. ; 1' ■• - . - 507 4 e; _.+; .:• 0.00 2218.50 3.000 265.552{ 2217.79 191039: 29.75 -2.31 -29.67 350704.40 247783627 60°1646604'14 150°5007.093"W 0.001 2318. + 3.000 265.5521 2317.65 201025 34.99 -2.71 -34.88 350699.18 2477835.93 60°4646.600"1 150°50'07.200"W 0.00 2418.50t 3.000 261532 2417.52 2110.12 40.22 -3.12 -40.10 33069395 2477835.59 60°46'46.596"1 150°50'07.305°W 000 ti 2518.5011 3.000 265.5521 2517.38 2209.98 45.46' -333 -4532 350688.73 2477835.25 60°46'4639211 150.50'07.410"W 0.00 ' tea'Z i,L `' 1' ' .,mix .<< , ?.,<.', Page 57 Revision 0 Jan, 2012 II Swanson River Unit 24-15 Drilling &Completion Procedure Hil� Planned Wellpath Report //tr SRI 24-15 Version 42 BAKER IG6�um 41..k,,Lit: erg`;of 8 HUGHES REFERENCE WELLPATH IDEN11rICATION Operator Hilcorp Alaska,LLC Slot SRi'24-15 • ea Cook Inlet,Alaska(Kenai Peninsula) Well SRI'24-15 field Swanson River tuft Wellbore SRI'24-15 Facility Pad 234-15(SRI24-15) . --- ,,„,„ .,.„--.- .,. ..__ „... ,. ,M,,,,,;,,,,,,,,,,a WELLPATH DATA(126 stations) t-interpolated/extrapolated station N _.„ 11D Inclination Azimuth TVD TIM from Pert Sect t North East Grid ast North -.._.....latitude Mongitode BLS omments DA I I I% Ift1 lid Vets Ref (ft] (ft] ]ft] (t 5 61 Il S ft] rt100ft1 t 2711.50t,' 3000 265.552k 2717.10 2409-70 55.92 -4.34 -55.75 350678 29 2477834.57 60°4646.584"N 150°50'07.620"W 1:::_ 0.00 2818.50t! 3000,, 265.552 281697 2509.57 61.16 -4.74 -60-97 350673.07 247783423 60'46'46.580"N 150°50'07 726"W 0.00 ( 2918-50t 3.000; 265.552 2916.53 2609 43 66.39 -5.15 -66-19 350667.84 2477833.89 60°46'46.576'N i50°S0'0'831"W. 0.00 300000 3.000 265.5521 299833 2690 82 70 66 -5 A8 7044 350663 59 247783161 61 60°46'46 573"1c 15050'07 916 W 000 1 •Angle Dr.• ..¢a, 1L50 0t4ti ra5.rm»l'" 5.552. 1 ._l�- FE�.�'.7159 5.'.�it 6163 27783 �" : ; �"t `.,,. . >O. r ,.` Sitt4t5fitgel 3118 50t, 1.815 265.552 3116.61 2809.21 75.63 -5.87 -75.41 350658_62 2477833.29 60°4646.569"N 150°5008.0 IV W 1.00 -77.69 350656.33 - 3218.50t 0.315 265.552 3216.58 i 2909.18 77.93 6.04. 2477833.14 60°46'46.56TN 150°30'08.062"W 1.00 3300.00 0.000 265.575! 3298.081 2990.68 78.51, -6.09. -78.27 35065575 2477833.10 60°46'46.567"N 15090'08-074"W 1.00 I •d of Dr.• 3318.501 0.000 265.575 3316 58 300918 78 51 L. -609 :7817, 350655 75 i 247783310 604646 567"N 150°50'08.0747 000 418,.01. 0000; 263.375•_ 341638; 31091tL •?851', -��,- '1S s 7,' »'9O _60 �.,>. ,, ,° •4 ,. ' '' 3518.50t 0.000 265.575, 3516.581 3209.18 78.51 -6.09 -7827 350655 75, 2477833.10 6046'46367"N 150°50'08.074"W, 0.00 ! 3618.50t 0.000 265.575 361658 3309.18; 78.51 -6.09 -78.27 350655.75! 2477833.10 60'46'46.567"N 150 9008.074"W 0.00 1 3718 50t 0.000 265.575 3716.58 t' 340918 7851 -6.09 -7827 350655 75 i 2477833.10 60°46'46.567"N 150°5008.074"W 0.00 3818 50t _�} 0.000 ,.}x,265.575 3816 581 3509.18 78.51 609 -7817 330655 75 1 24778333 10 60°46'46367°N 150°50'08.074"W 000 .°.:17 ia$lii x?' +a,a �.r T.• .ka #'at. :a8ou0'�'`tf. . , ',5i$ y.34 3310 i b wi..E i• •.vM. a i - •"a" ..4 g .v.._-�.-. 1 4018.50t'', 0.000 265.575] 4016.58 3709.18; X78.51 -6091 _78.27 350655.75 2477833.10 N'46'46.567"14 150 90'08.074"W; 0.00 4118.50t 0.000 265.575; 4116.58 3809.18; 78.51: -6.09! -78.27 350655.75' 2477833.10 60'46'46.567'0t 150 9008-074"W 0.00 4218.5014 0.000 265.575 4216.58 3909.18 78.51 609: -7827 350655 75 247783110 60'46'46.567°N 150 9008.074"W: 0.00 4318501', 0000 265.575 4316.58 4009.18 78.51 -6.09 -78.27 350655.75 2477833.10 60°46'46.567°N 150°5008.074'W 0.00 • ��a • .r.�,�id ffi �. 1sa't�,A�_ .a' °1 Or, ,' "�' i�`.`�i�n',kP'' `''°.' e �°a�.. . 4518.S0t; 0.o00rc 265.575 4516.58 4209.18 78.51 -6.09- -7817 35,655.75 2477833.10 60'46'46567"N 150 9008974"W 0.00 4618.50tr 0.000 265.575 461638 4309.18 78.51 -609 -78.27 350655.75 2477833.10 60'46'46.567'N 150 9008.074"W 0.00 4718_501'1 0.000 265.575 471658 4409.18 7831, -6.09 -78.27 350655 75 2477833.10 60'46'46.567"N 150°5008.074"W 0.00 4818.50t; 0.000 265.575 4816.58 4509.18 78.31, -6.09. -78.27 350655.75 2477833.10 60•46'46367"N 15090'08.074 M i 0.00 5018.50t 0.000 265.575 5016.58 4709.18 a 78.51, -6.09: -78.27 350655.75 2477833.10 60 46'46.567"N 150 90'08.074"W 0.00 5118.50t 0.000 265.575 511658 4809.18 78.51 -6.09 -78.27 350655.75 2477833-10 60'46'46.567'N 150°5008.074"W; 0.00 5218 50 j, 0.000, 265.575 5216.58 4909.18 78.51 -6.09 -78.27 350655.75 2477833 10 60°46'46.567"N 15050'08 074"W I 000 5318.501; 0.000: 265.575 5316.58 5009.18 78.51 -6.09; -78.27 350655.75 2477833.10 60'46'46.567"N 150°5008.074"W` 0.00 Page 58 Revision 0 Jan,2012 11 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp tamp Compaq. 111 Planned NVellpath Report SRI:24-15 Version#2 BAKER Page 4 of 8 Fail [Map A lAia,Ili: HUGHES REFERENCE WELLPATH IDENTIFICATION ,Operator Hik. ,Ahska,LLC Slot SRU 24-15 .,_._ Area Cook Inlet,Alaska(Kenai Peninsula) Well SRU 24-15 ■field Swanson River Unit 'ellbore SRU 2415 acuity Pad 234-15(SRU24-15) WELLPATH DATA(126 stations) ,-interpolated'extrapolated station NM Inclination Azimuth TVD ni)from Vett Sect North- , eT" , Mae Irl! DLS ,,-, ts Ifi: [r] ri : [ft] Fld Veit Ref [ft] [ft] WI WS I] ILIS14 rallel _i [ft] ._.... , 551S 5U-r 0.000 265375 5516.58 5209.181 7831 -6 09 -78.27 350655.75 2477833.101 60°4646367'N 150°5008.074W I 0.00 5618.501 0.000 265.575 5616.58 5309.18 I 78.51 -6.09 -78.27 350655.75, 2477833.10 i 60°46'46367"N 150°50'08.074W I 0.00 57183011 0.000 265.575 5716.58 5409.18 78.51 -6.09 -78.27 350655 ' 2477833.10 I 60'46'46.567W 150°50'08.074W I 0.00 , ' 5811501" 0.0001 265.575 5816.58 5509.IS 7S 51 -6 09 -IS r 350655-5 24'7333 10 60'4646.567N 150°5003874'W I 0.00 I 5918.501 0.001 265.575 5916.58 I 5609.13 7S 51 -6 09 -7S 27' 350655 75 2477333 10 60'4646 567'N' 150'5003 074"WT 0.00 6018 501 0000 265.575 6016.58 570°IS -S 511 -;079 -73.27 350655.75, 2477333.10 60'46'46.567Ni 150'5008.074W• 0 00, , 6118301 0.... 265.575 6116.58 5$09.13 -S 511 -6 09, -78.27 350655.75 i 247783110 i 60°4646.567W I 150°50'08.074W 0.00 6218.501: O..*. 265.575 6216.58 5909.IS -5 51 -6 CO: -78.27 350655.75, 2477833 10 6046'46.567N 150°5008.074W 0.00 , 6318 501 000. 261575 6316.55 60C9 IS -S 1 -6 C91 --S.2-1 350655-5 24-7.5 1C. 60'46'46.56-N 150°50'08.074W 0.00 6418 501 0...., •I'Il,,,,,.. 1658] 6109.18 ' -6.09 -7827 350655 75 247-S33.10 604646.567"N 1564048't.,liailirr14110144I'A. 6510 507 0.1•1 265375 6516 551 62(19 IS ' 78.51 -6 0,9' ;75.2-' ::006'.0:.= .10 2477553 IC 604646 55-1N 152=50'03 074°W 0.00 6613 501 0.01 1 265.575 6616 5S' 6359 IS 7151 -6 CO --S 2 350655-5 2.4-7035 IC 60'4646.567N 1505003.074W 0.00 6718.501' 0.000 265.5756 6716 5S 6409.IS 7831 -6 09 --S 2- 350655-5 24-7:33 10, 60'4616367N 150.5001074W 000 6513.50t 0000 265575 6316 58 6509.1S 78.51 -6.09, --S 2- 2'0'55-5 24-.533 10 604646.567'N 150°50'08 crww 000 6918.501 0.001, 265375 6916.58 6609.18 78.51, -6.09 -73.27 350655.75 4 77833.10 60°4646567"N 150°50'03.074w ow 7018.501, 00001 265.575, 7016.58 6709.13 73.51 -6.09 -73.27 i 350655.75, 247-333 10 604646.567N 150°50"08.074W 0 OC ''--- 7118.505I 0.000 261575 7116.53 6500 IS 75.51 -6.09 -78.27 350655.75 I 24-3.33 10 6046.46.567N 1505001074"W 000 721S 501 0.000 261575 7216 53'--- 6909.1S 78 51 6091 -73.27 350655 75 24-333 10 604646.567"N! 150°50'08.074"W 000 7318 50+ 0.000 265375 7316.53, 7009.13 78 51 -600 1 -"3.2"I 350655s 24-7333 Is 60°4646.56-N 15050103 074"V' 0 00 7411501' 0.000 /61115 741658 7109.18 78.51 -6.09 1 -78.271 350655.75 2477833.10 60°46'46567"N, 150°5008.074"10 0.00 751S 507 00001 265.575 7516.531 7209.13 73 51[ -6 09 r _7s 27 1 3506555 247-333 10 60'46'46 56""N I 150`50.03 0"4"W 0.00 7600 00 0.000 265.575, 7598 OS I 7290.63 78 51 I 6091 -7827 1 350655 75 24--S33 10 60'4646 56'N I 150°500S 07471V 000 KOP 7615 50+ 0.3701 265.575I 7616.531 7309.18 7S 57 .6.091 -7'3.331 350655 69 24+7533 10 6046.46.567N1 150°5003 0,5"W 200 7715 507 2.370 265.575 7716 551 7409.15 SO 96 I -6.281 -50.71] 350653 31 247532.05 604646.5652 ] 1505003.123-W 2.00 7818.501 43701 265.575 781637' 7508.97 86.841 -6.73 I -8657 1 350647A4 2477832.57 60°46'46.561"N i 150°51208241°W 200 7918.501 6370 265575 791593 7603.53 I 96.19 -7A5 -95.911 350633.10 247733197, 604646 553W[ 150°500.3 429.'3. 2 00 8018.501 8.370 265.5751 801109 7707.691 109.02 4.44 -108.69 35062530 2477831.14 60'46'46.544"211 150°50'03 637"W 2.00 5118 50t, 1037 265 5-5' 0113 76, 7306.361 123.30 -9.70 -124.93 350609.06 2477330 09 604646531"N I 150+50'09.014"W 2.00 5213 5051 12.370 265 5-5 1-211-7 0 7904.39 145.01 -11.22 -144.58 35058939 '247732332 60'46'46.516N] 150+50'09.409"W 2.00 3313.507 14.370 265 575 3309 07 80017,:‘4,:,,,l;',01::‘',=,114 .1- .00 '467.63 35036632 247782733 60°4646499"N i 150 5099974W zoo Page 59 ,t, Revision 0 Jan, 2012 fil Swanson River Unit 24-15 Drilling &Completion Procedure Hi1COrp lmseq Comp II Planned Wellpath Report .,��� SRI'24-15 Version#2 BAKER Page 5 of HUGHES Wear!,11.M.,1.11 REFERENCE VPELLFATH IDENTIFICATION Opanto( Rikorp Alaska,IL(' ]Slot SRU 24-15 Area Cook Inlet,Alaska(Kenai Peninsula) Well SRU 24-15 Field Swanson Ricer Unit Wellbore SRU 24-15 Facility Pad 234-15(SRU24-15) ''ELLPATH DATA(126 stations) +-interpolated/exuapolated station ■ '“ 1'"' ._..- 7°'"'" S$--___ Lim Veil-tier North '---" t CsidEast Geidlr'oni Lanni& - Longue 1 D1 emmentts [% ii [ft] lid Vert Ref [0] [ft] [0] [1:18 ft] [US al rI109tr] [hl 16.370 265.575 8405.49 8098.09 194.63 15.05 194.06; 350539.87 2477825.621 60•46'46.479"N 150•50'10406'W(_ 200 > > 8514 '. 18370; 265.575 -X3 75 5500.93 8193.53 224.49 -17.35 .8-j 350510.08 2477823.70 60•46'46.456126 150°50'11.005'.0'I 2.00 6616.50t 20.370! 265.575 8595.26 8287.86 257.66 -19.91 -256.89', 350476.99 2477821.561 60°46'46.43114 150°5011.671'W 2.00 8710.41 222081 265.575 8680.90 8373.50 291.03 -22.48 -290.16' 350443.69 2477819.41 60'46'46.405N 150'50'12.341'W 2.00! ••of Final Build 8618301 22208 265.575 876097 847157 331.66 -25.64 33019 350402.92 2477816.77 60'494637414 150'5/13.162 " 000 8918301' 22.208 265.575 8873.55 8566.15 369.68 -28.55 -368.58 350365.21 247781434 604e46346"N 150'50'131214 000 9018.50/ 22.208 265.575 8966.13 8658.73 407.48 -31.47 -406.26 350327.49 247781190 60'46'46317'N 150'5014 000 9118 ■ 22.208 265.575 9058.71 1751.31 44527 .3436 .44393 350289.78 2477809.47 60•46546288'N 150•5015 ' V 000 9318.504 • , r 1 9243.87 8936.47 32037 .40.22 -519.32 350214.34 2477804.39 60'46'44231'N 150'5/1 0.00 941 • 9336.46 9029.06 558.67 .43.13 -557.00; 350176.63 2477802.16 60•40'4$.202'N 150•5917.715 •' 0.00 951 ■ • ' ■ , 7e, 9429.04 9121.64 596.46 -46.03 -594.68'. 350138.91 2477799.72 60'46'4.173W 150°50'18.474'W 0.00 ,':.� 9521.62 9214.22 634.26 -4896 -63237 330101.20 2477797.29 60•4646.144-N 150'5019233'W 0.00 9706.78 9399.38 709.86® -707.74 350023.76 2477792.41 60'461608T4 150'5020.73M 0.00 9799.36 9491.96 747.65 -743.42 34998805 2477789.98' 60'46'46.058"74 150°5071.510' 0.00 10018. .illv=IF 437.0 9891.95 9584.55 785.45 Imo= 34995033 2477787.54 60'46'46.030"N 150°5022.269•W 0.00 10118.' a 9984-53 9677.13 823-25 .63.54 -_-- iEr., I ® s4991262 u77iss io so'a6'46o01"4 1sos/ZS.a2:'vr 0.06 10218 _ [0077.11( 9769.71 861.0"e, _ 10315 508 21.208i 26.1.3 10169.69 986229 898.84 -69.37 -896.16' 339837.19 2377780.23'. 60'46'45.94318 150'5024.546'W 0.00 10418.508 22208' 265 10262.27 9954.87 936.64' -72.29 -933.85 349799.47 2477777.80 60'46'45.915'N 150'5025305'W 000 10512.508 22.20S 265.575 10354.85 10047.45 974.44 -7521 -971.53' 349761.75 2477775.36 60'46'45.886'N 150°5026.064'W 0.00 -1009.22 349724.04 2477772921 60°46'45.85TN 150'50'26.823"W 0.00 1o61ssot zz.zos 2esss 10447.44 10140.04 101224 -78.12 X6.00; =11/1=MMEM 10632.60 1032520 miaanrialmmuicznei 2477768.05. 60'46'45.800"N 150•5928. . • 0.00 f 1091 •1 22.208.._265575 10725.18 1041778 1125.63 412227 349610$9 2477765 62- 60'46'45.771'8 150°5029.099'W 0.00 1101 , 22108 265.5 10817.76 10510.36 1163.433 0 4159.96 349573.17 2477763.18 60°4945.742'N 150'5029.858'W 0.00 11050.51 22208 265 10540.00 117533 0.00 mat/13-5 tk,-' ', Page 60 Revision 0 Jan,2012 iii Swanson River Unit 24-15 Drilling & Completion Procedure Hilcorp Beata Compay II Planned NVellpath Report Sat 24-15 Ver Slott#2 Page 6 oil IrgPiiiill BAKER ...ore Alotios,11 4 IIUGINIES Flt Fl RI N't t Will PA111 IDENITIFIC 110‘ Operator Ilikosp Alaska.LL( Slot SRV 24-15. r ook tniet.Alaska Mt usi PoIabrilati) Well SHE 24-1.3 Frk4 s‘,41:14031 RKet 1:1111 WAIN* SRI 24.15 ii3,1:4, Pail:LI I 11,RP33 351 I X LLL l'A 111 DA 1.. 1 2 6 stations) --toterpolmted vitt wpotot.4 lottom _ -- relit lothriation 1 Astrai ih 1111.1? Flairrtaitt I Vertilirct ' Irjli r „f, G,,.,„,,,, Griii1:Zforrith ."--" tale" -- ]14LS orosieatt 11211501. :541111 245 575- 11993 93 1000 '- 1:4:i 4 2 -4',e' .1,24,i 3,3: 149407-4 .:4777sS ii I 40°4f4$01314,1 130141.)/321rW. DOG - ---- ... 1131i'of! "20( 343S7 1045 51 1013 I i I."Ii . 4N'.I -I'';01: .“044,1-a■ :4 ',',•I''' alylaiiii jorpt, 150.1012,11rw DOG 11411 Sit: 22 201It 1 w 4.4 3,65 5 o4 13 1:103 09 :00.01.,6:1 ill.:t::. .1 LI1 4' -I 3 II■to- 14 ::.-,1 :4 '7,. 604.4.743, criN ient or 00 . w: 0 , 11511 50 t 22.201 265 575 112Ir,07 12,,-3.2 1,..4:2 al -II1,11.I. -I 34.1 A .i.ta:S4 1,9 23 7- 51 ii.1 60.4643.59rN 3.501W13TV---076.0 11011401" 1.1..20g Iii OS 113H-25 lioft-.125 139021 -101_3' -138909 303,19.18 2477741-14 60'illIllIllillMMIILIIIIIIIIIW 11710 47 j 21210 205 555 11458 40 1115101 t-IL.'4 47 - J14 -14 7,-2 :',19312 14 2-17—se Li 2 6',':'46.4$543 150* 15.1WW 000 HOLE&CASING SECTIONS-tutwelommtair u.13 Rrf WeApadv SRI::4-15'Version a: — — ,StratigIbtaartetet Statt MD End MD laterral Stott 111:1 , Ind TNT S■13/1):,'S Start E 11 Lod N'S ' Eue1 E.11. Pli Itill ill itil int 114 114 lal 13 Sas Open Hole 15 501 3000 00 2981 30L 7050 90$22 000 000 -5.48 -70 44 dp T5pi f 3;U 1 g Surface DI 50i 3000 00 2981 501 *050 299822 000 0.00 SAP -7044 rsi iFsat Oven Hole 1ri00 Zit isnia op 7930064 2,9911 22, 1 ar- 40 44 ,l721 1124560 , _----i .,7 025w C asotg luterawdase 18 50 1091000 10911501 1830 10735.83 000 001) -87 2I -1126.60 6 750 Open Hole 10930.00! 1171641 716-4? 10715.&1 1145840 4721 -1126. 0 -l09.9 [ -742072 --- i ,5ta Law 10730.00t 11710.47 98047 10550.66 114 40 i 58 4137 -105124 -109.961 -142072 II Planned Alvellpath Report SRI:24-15 Version.2 M Page 7 of 8 ITAiill EER I liln.ri.11144o,Ill FIUGHES REFERENCE WELLPATH IDENTIFICATION Operator 'Ilikorp.-Uaska.LLC Slot SRU 24-15 Area Cook Inlet.Alaska(Kenai Peninsula) Well SRC 24-15 Field ,Sivansou River Unit Wellbore SRL-24-15 1 'Facility Tad 234-15(SRU24-15) . . ,. TARGETS ...SIM 1) H3-5 Tgt:19-Dec-12 .._.__ - MD TVD North East Grid East 1 Grid North Ift] fft] [ft] ; IS ft , it SRU24-15 s ft] Latitude Longitude Shape [ft] 11050.51 1 10$47A0L-90.72; -1171021 a 3495634)11„ 1.17762.40 ftomess.,n3"M isOrstisol9i , circle ,....,......., , --.1°°........-- SURVEY PROGRAM-Ref Wellbore:SRI:24-15 Ref Wellpatla:SRI:24-15 Version#2 Start MD End MD 7 Positional Uncertainty Mattel Log Name Comment i Wellbore „... Iftl ft 18.50 3000.00iNaviTrak(MagCorr) $RU 24-15 3000.00 10930.001NasiTrak(Mag_Ccar) 10930.00( 11710.47NaviTrak(MagCorr) 1SRC 24-15 Page 61 Revision 0 Jan,2012 Swanson River Unit 1 Drilling &Completion Procedure Rile Sam Compaq II Planned Wellpath Report SKL'24 15 Version#2 MIMI Page 8 of S HUGHES Ilt6wrr Alreta,l=I,k. R fkFI Nt111iI.P.11I3LOIN111"It':11Iti (vetoer IlHrnrp Alaska,LLC ,Sko - 114-15 11ra Cook Iola .1latka(Kenai Petatasrtltt) :we11 '"C24 $ Full SIAM/ALAI Rh ea l alt ie1Ibore 24-15 Facpitty Pad:s4 i;rSRt'.J IS) 11Ei.)_PA'1)i(MIME.∎1., 1m 1m.IWatiou Atttautk Its Co�e�l Will —,...__ ) II Irtl i 532 00GG 2655'5 3473 ,gb " ___ 505332' 8.000; 265575 50553 504 — 8054351 0000j 265 515 6055slfllCT I '1163? 00001 265575, 7116406811 803?03pp -- 8.73R .645711 80 530=T1-3 48101'( :32091 '165 5711 9707 3017 _ 420 is 10033.96 32.'09] .St5.5?5f 107884010, 3 1tW9574( 22 208, 205k711 _ l0$ 4 HKTt5+s y' t+tal r 11151201 ;2'.Wi? 265.5731 10643 40411-1 11113Sf m2 x01' 76aI7 11100 a;H0 Page 62 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp Enemy Compaq 34.0 Directional Plan View (Plot) Hilcorp Alaska, LLC ��i� locator: Cock Wok A4kka ikCsoo Pertns5a Oct tRL 4-;5 .x•tl_ Towson Ron Cot N`ec 88431-1£ cac,a.' Poo,34-1 I3M J74-l61 Welbre 3RA3:-l-;i BAKER HUGHES Ililcorp Plot reference wellpath is SRU 2443 Version#2 True vetdcat depths are re`erenced to Antic Fox(RTE) Grid System:M114027 TM Alaska SP.Zone 4(5004(.US feet Measured depths are references to Arctc Fox(RTE) Nosh Reference:True north ArcOc Fox(RTE)to mean sea tenet 307.4 feet Scae:True distance mean sea level to Mud fate(At Slot SRU 24-15):0 feet Depths are in feet Coordinates are au feet referenced to Sto1 Created by:?xethoh cn OS-Jan-13 400- 0- NO 1p0^ 5e14n Oh:Nugie 1 AD'.�fOtrt rmaasew swop- WOO- t.o eDt c w a DrDa Si 40W- 1100 Y 554 CICT MOO- ten KOP - 7-3 ZCO10071 Ees1 a Fray 5514 WOO- N0 TynkiaP_PCC 1010(1 i 7 CV,Corky Imenenate bra NKr■Seconay°OXO., 'net H3.5 NM 5+i�i-i t Hi-5 Tit 11,-Dec-12 Yom- HID no, Sri Lnr 1 1 1 1 1 1 I .000 0 500 WO 5100 MO 4000 Vertcal Section tfE Aormr■7515"van reerencc 5.X N,5:)7E Page 63 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling & Completion Procedure R il 35.0 Spider Plot (NAD 27) (Governmental Sections) 0 A0284,05 570 SRU 31-15 81-IL SRU 4 A-15 BHL SRU 32A-15 BHL _)SRU 32.15 BHL C13 A028384 7�J A028077 SRU 15RO.BHt3RU 43&15 S008N009W SRU 24-15 BHL SRL"24-15 Surface Location) A028406 _.SRU 14-15131-11. N. SRU 24-15 Top of Productive Horizon S RU21-228HL Legend • SRU 24-15 Surface Location ,0 0 >:: SRU 24-15 Top of Productive Horizon G:� - SRU 24-15 BHL • Surface Well Locations • Bottom Hole Locations Well Paths SRU 22-=prop 8HL ♦—..__._-- _ _____ SRF Unit Boundary .1 000 2,000 Swanson River Unit Feet SRU 24-1 Xsska Stake Pa^e Zone 4.NAD27 r,:,....,. ti,-t:. If Map Date:11. 0t3 A Page 64 Revision 0 Jan,2012 II Swanson River Unit 24-15 Drilling & Completion Procedure Hilcorp Energy comma 36.0 Spider Plot (NAD 83) (Governmental Sections) 0 41D A0284G5 4� ;;RU 31-15 BHL • $RU41A-1E 61-L _~ SRU 32A-15 BHL SRU 32-15 BHL I mm 1.F�7 A028384 SRU438-15 B:L A028077 SRU43-15RD Bbt•. • S008N009W SRti 24-15 BHL SRL'24-15 Surface Location A028406 SRU 14-15 BHL N. SRL"24-15 Top of Productive Horizon zSRU 21-2213141 Legend SRU 24-15 Surface Location m E2 SRU 24-15 Top of Productive Horizon rte+ -} SRU 2415 BHL e Surface Weli Locations • Bottom Hole Locations Well Paths SRU 22-22 prop BHL • — SRF Unit Boundary int t.000 x,000 Swanson River Unit Feet SRU 24-15 Aaska Stagy Fa a Zone 4.NA063 A Iti Map Date.1E24t3 Page 65 Revision 0 Jan,2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp , Eon Compaq 37.0 Surface Plat (As Built) (NAD 27) tNORTH 1 ' '7 iCC T I ' sc�lLE ' I .. lw\ ([7------- --4 ''+` EOF'A( tIts aW l 1 "" rf' . ,0 I U • i il i *:•49 TH . * z O PAD 1t-t; f 1 j „'•.#t. SCOTT McLANEr p ,�. (0,1 x1-- ! w'.O • s 4928-5 r' 4 0 .2 e„ - I ... I, 1 2370'FEL ' • • f� J ti ( AS-BUILT WELL i I- 1 I SRU 24-15 aw I N:2477838,197 E:350734.089 31 ,? LAT:60.46'46.627"N LONG:150°50'06.49M i _ _ ASP ZONE 4 NAD27 ACCESS ROAD -c:. _- _� _it FEL=2370' • µ� - - ESL=881' ELEV=288,9'(NAVD88j . .w SECTION 15, IwTAN,R9W,SM,AK • 8 0 NOTES dip- t)OASIS Of Cotm JI^7at FS;hOS OPUS S .UTION FROM CONS SEC J lAN1' 1t3QN'ANIT SEA'AtASKAST ATE AlA1 7OMC 4NADfJ "1' PPCICN 211433 733ASIS ELFVACk3N:NOS 13MLESSRESE1 1951 NAVD9d. 31 SECT ION LINE OfcSt.TS COMPUTED PROM 8LM CORNERS FOUNDA.ONO EAST BOUNDARY 01-S'53 USW TO COMPUTE BOUT H LINE OF ST3 SHOWN. .0 CORPSCON VERSION S.p.1 SOFTWARE WAS Utit,m-i,FOR CONVERSIONS BETWEEN DAI MIS'NAM TO NAT?Th I SECTION LINE FND BLM 15 14 NOT TO SCALE N 2476927.69 E 353092.80 3 SRU 24-15 AS-BUILT SURFACE LOCATION (NAD27) tit SWANSON RIVER FIELD LOCATION:SECTION 15, TOWNSHIP 8 NORTH. 1" ENGINEERING',OB -T=sau G RANGE 9 WEST,SEWARD MERIDIAN ALASKA P' SURVEYING o.s -MAPPIN'3 r+,{),BOXtGa II itmrp Mliwka,1,1.11 SOLDOTNA,AK.93€19 JOB NO 123110 VOICE:(907)283-4218 FAX:(907)283.3285 DWG. CiroultingIne WWW,MCLANECG.COM 123110 I Date: 117/2013 FIGURE: 1 Page 66 Revision 0 Jan, 2012 lit Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp Emily Compaq- 38.0 Surface Plat (As Built) (NAD 83) , NORTH A ii if------- -..:: ,t----1 la '4g TH `.' -.*i z E 0.i F'l��4-i� / i F•- 4 / lick, V. SCOTT McLANE; Vi1 SqU 5M1S , - ., W10 h'L11ty)E.iJ 1 ,lt 4�zE-S : CO z ( t' { � _mm_ i 111\;'►e.®.-, ,'�^ �+ i l 2370'FEL k AS-BUILT WELL r u f SRU 24-15 6 clie 8 f N:2477599.838 a. o� w L:1490757.447 la I mac$ LAT:EO 1°46'44,608 LONG; 50°50.14,4'N 86'W 1 �� ASP ZONE a NAD83 1 nccESS RoAt1 _ ., - -,�..�— _ - � � PEL=2370' FSL=881' ELEV=286.9'(NAVD88) SECTION 15, 1 TEN,R9W,SM,AK 12 3 u NOTES 1 p;p $) OF COORDINATES:NOS OPUS sotu1ION FROA4 WARS SEC' 15 fp 2041','WIN"AND TSFA"Al A CA STATE PLANE ZONE 4 N4k1E3 EPOCH 2043, 4)BASIS OF ELEVATION:NOS BM OM RESET 1551 NAVDD$, 31 SECTION LINE OFFSETS COMPUTED FROM S.M CORNERS FOUND ALONG EAST BOUNDARY OF St$USED TO COMPUTE SOUTH BOUNDARY OF 544 SNOWJN. SECTION_LINE _ END BLM 15 14 NOT NOT SCALE .� �._...." N 2476689,2+1 E 1493116.20 2 3 SRU 24-15 AS-BUILT SURFACE LOCATION (NAD83) SWANSON RIVER FIELD lit LOCATION:SECTION 15, TOWNSHIP 8 NORTH. ENGINEER]NCI-TESTING RANGE 9 WEST,SEWARD MERIDIAN ALASKA SURVEYING-MAPPNG P.O.BOX 455 JIll rp klU�kn.1.1 1. t SOI,DOTNA,AK.93659 JOB N©, 123110 VOICE:(9O7)283-4218 FAX:(901)283-3265 DWG, C,nrrtfipinc l5A W.MCLANECG.COM 123110 I Date:11:7;2013 FIGURE: 1 Page 67 Revision 0 Jan, 2012 Swanson River Unit 24-15 Drilling &Completion Procedure Hilcorp 39.0 MW, PP, FG vs Depth Plot SRU 24-15 MW, PP, FG vs Depth 0 - 500 1000 1500 - ---- Mw vs Depth 2000 —FG vs Depth ✓ 2500 —PP vs Depth 3000 3500 4000 4500 — 5000 x 5500 NN, 3 a 6000 2 m 6500 7000 7500 8000 ---- 8500 9000 -- — — 9500 . _ 10000 10500 11000 11500 12000 — 4 6 8 10 12 14 16 18 EMW{ppg) Page 68 Revision 0 Jan,2012 Swanson River , . ili Well SRU 24-15 Hilcorp Diverter Waiver Request Rows"Cuorpm SRU 24-15 Diverter Waiver Request Hilcorp respectfully requests a waiver to: (1) AOGCC regulations 20 AAC 25.035 (c) Hilcorp requests permission to drill the 13-1/2" surface hole to a depth of 3000' MD / 2998' TVD without the use of a diverter. AOGCC regulation 20 AAC 25.035 (h) (2) stipulates: (h) "Upon request of the operator, the commission will, in its discretion, approve a variance (2) from the diverter system requirements in (c) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary." Based on drilling experience obtained by previous operators of the field, it is conclusive that no shallow gas hazards exist beneath this pad to a depth of 3000' where surface casing is planned. The logs from the existing well drilled from the same pad (SRU 234-15) clearly show that not even the normally pressured Sterling A exists this far to the South East. Geology: Shallow geology has been reviewed and the following summary of the lithology to be encountered is provided below: Surface -500': Interbedded med to coarse grained sand and coarse gravels. 500- 1000': Interbedded 75% - 25% fine to medium grained unconsolidated sandstone with claystone, clay siltstone and carbonaceous mudstones. 1000- 1600': Interbedded 60 -40% fine to medium grained sandstones, with claystone, siltstone, clay sandstone and carbonaceous mudstones. 1600-3000': Interbedded 75% - 25% fine to medium grained unconsolidated sandstone with claystone, clay siltstone and carbonaceous mudstones. Hilcorp is not aware of any significant faulting, nor do we expect any oil or gas to be trapped, as no suitable seals exist with this shallow section 1/14/2013 Page 1 of 4 Swanson River Well SRU 24-15 Hil corn Diverter Waiver Request urpaq Experience in the near vicinity: SRU 14B-27 • Date: 12-9-2012 • MW Utilzed: 10.5 ppg • Distance and direction from SRU 24-15: 2.4 miles South • 13-1/2" surface hole section was drilled to a depth of 2980' MD / 2978' TVD and run (and cemented) the 10-3/4" surface casing with the shoe at 2960' MD / 2958' TVD. Surface casing cemented to surface. There were no indications of shallow gas or shallow gas potential. SRU 241-16 • Date: 5-29-04 • MW Utilized: 9 - 9.2 ppg • Distance and direction from SRU 24-15: 2997' NW • Drilled 12-1/4" surface hole to 1560' w/ 9 ppg. No indications of shallow gas. A diverter was not utilized to drill this hole section. Surface casing cemented to surface. Drilled 8-1/2" hole to 4818' MD / 3539' TVD with 9.2 ppg. No issues noted. SRU 242-16 • Date: 8-18-89 • MW Utilized: 9.2 - 9.5 ppg • Distance and direction from SRU 24-15: 2882' NW • Drilled 12-1/4" surface hole to 2346' MD w/ 9.2 ppg. No indications of shallow gas. • Drilled 8-1/2" hole to 4860' MD / 4022' w/ 9.5 ppg with no issues noted. Surface casing cemented to surface. SRU 234-15 • Date: 6-21-61 • MW Utilized: 10.2 ppg • Distance and direction from SRU 24-15: 37' North • Drilled 17-1/2" surface hole to 3011 ' MD w/ 10.2 ppg. No indications of shallow gas. This well is on same pad as SRU 24-15. • Surface casing cemented to surface. 1/14/2013 Page 2 of 4 Swanson River Well SRU 24-15 Hil corn Diverter Waiver Request E Campo SRU 43-15 • Date: 7-16-61 • MW Utilized: 10.2- 10.3 ppg • Distance and direction from SRU 24-15: 2075' NE • Drilled 17-1/2" hole to 3030'. No indications of shallow gas noted. • Surface casing cemented to surface. SRU 23-15 • Date: 2-15-61 • MW Utilized: 10.2- 10.4 ppg • Distance and direction from SRU 24-15: 1614' NW • Drilled 17-1/2" hole to 2993'. No indications of shallow gas noted. • Surface casing cemented to surface. SRU 21-22 • Date: 11-14-61 • MW Utilized: 10.2- 10.7 ppg • Distance and direction from SRU 24-15: 1730' SW • Drilled 17-1/2" hole to 3030'. No indications of shallow gas noted. • Surface casing cemented to surface. Possibility of Shallow Zone charge up: There have been no incidents of surface casing leaks of any adjacent wellbores, nor is there any formation with closure that would trap an accumulation of gas down to 3000'. The only shallow gas formation in the field is to the NW of this pad (Sterling). A summary of this productive interval is attached. 1/14/2013 Page 3 of 4 Swanson River Well SRU 24-15 HllC01p Diverter Waiver Request Emmy Compaq Swanson River Map Yellow shaded box denotes offset well locations 14-a ?\ 1 I p esi i ! 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Q !Z) * N r�r rr-r `-° O O cn U-i =7: ' ' X r.� 1� Q D CO O p f`�D o O N I-1 N N = O '� * U-1 _c/1 r..) a) -h : gl TRANSMITTAL LETTER CHECKLIST WELL NAME � z — ✓� PTD# 2l 3 C ✓ Development Service Exploratory Stratigraphic Test Non-Conventional Well l 7 / FIELD: . -turR vu �:�' POOL: � ' C_`Z C * �� Check Box for Appropriate Letter I Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. ,API No. 50- - - API number are between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to produce/inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non-Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for(name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev:9/09/2011 1 TI1 CD Ua a x is 7 0_ Q Y V 0 ° 0) 0> e- U O O > a o) z a) °O 3 °° 2 u) L 0 w O 0 O O C 0) a) O C 0 C N O a 7 a O N C .0 N O N .3 N CO 0 N 0 -p ._ 0 O co cv E C 7 C c > 7 0 _ ° E N N a Q .- N O o O 00)) 0 co CO c °o rn L 0 c aoi o cr> o) a) E 0 Q 3 a m N as o a o o) N M 0 O N 0 7 0 N 3 O O cN- C C 0 t� d Q N � o C .0 LL O o co •o• 0 O U ca .3 w ILL U 3 D c p '� = a) off) .L' o .p T o ix - a> 0 3 w ° o a) a x •— C 7 N °O 0 0_ cn C a) o . 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CO O � � � � e- N N N N N N N N N N M M M M M M M M M M V U co co __... co I— a) 0 a) p a O C o N N U CU ix r--- o 0 O O cs 0. o N CI) N o a)W c N o-R E J N N 0 c o W 1.-t a ° C a co O a a 0 3 < Q CO lu Q U , • Well History File APP ' 1 Infoirriation of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically • organize this category of information. AT -aO CIV D t.JUL 17 2013 AOGCCE1 llilcorp Alaska, LLC Hilcorp Alaska, LLC SRU 24-15 4. 11 rr t t. r r P ^y �� • - RDA A FINAL WELL REPORT DML MUDLOGGING DATA Provided by: C:AN1RIG Approved by: Kevin Eastham Compiled by: Larry Resch Craig Silva Distribution: 5/11/13 TD Date: April 19, 2013 H Hilcorp Alaska,LLC SRU 24-15 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT&CREW 3 1.1 Equipment Summary 3 1.2 Crew 3 2 WELL DETAILS 4 2.1 Well Summary 4 2.2 Hole Data 4 2.3 Well Synopsis. 4 2.4 Daily Activity Summary 5 3 GEOLOGICAL DATA 21 3.1 Lithostratigraphy 21 3.2 Lithologic Details 22 3.3 Connection Gases 36 3.4 Trip Gases 37 3.5 Sampling Program/Sample Dispatch 37 4 DRILLING DATA 38 4.1 Directional Survey Data 38 4.2 Bit Record 42 4.3 Mud Record 43 5 SHOW REPORTS 45 6 DAILY REPORTS 52 Enclosures: 2"/100' Formation Log (MD/TVD) 5"/ 100' Formation Log (MD/TVD) 2"/ 100' Drilling Dynamics Log (MD/TVD) 2"/ 100' LWD Combo Log (MD/TVD) 2"/ 100' Gas Ratio Log (MD/TVD) Final Data CD 2 CANRIG Hilcorp Alaska,LLC SRU 24-15 1 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary Parameter Equipment Type/Position Total Comments Downtime Mudlogging Unit Canrig: 3 HP Compaq Workstations 0 Computer System (DML, Rig Watch,and Sample Catcher) Canrig: (2) OGM Gas Traps (with High RPM Ditch Gas Electric-Powered Agitators) 0 Canrig: E-Series Hydrogen Flame Gas Analysis and Chromatography. TOTCO RigSense All Drilling Parameters 0 Block Height/Depth Totco WITS Feed -0- Hookload/WOB Totco WITS Feed -0- RPM Totco WITS Feed -0- Torque Totco WITS Feed -0- Return Flow Totco WITS Feed -0- Pit Volumes Totco WITS Feed -0- Mud Gain/Loss Totco WITS Feed -0- Pump Pressure Totco WITS Feed -0- Pump Strokes Totco WITS Feed -0- Rate of Penetration Calculated from Block Position tracking -0- Mud Flow In Calculated from Pump Output/Rate tracking -0- 1.2 Crew Unit Type • Arctic Steel Skid Unit Unit Number ML030 Mudloggers Years* Days*2 Sample Catchers Years Days*2 Technician Days Larry Resch 13 19 Tyler Willey 2 31 Craig Silva 34 45 Patrick Zenger 2 29 Ralph Winkelman 22 26 Dickey Hudgins 3 3 *1 Years experience as Mudlogger. '2 Days at well site. 3 CANRIG Hilcorp Alaska,LLC SRU 24-15 2 WELL DETAILS 2.1 Well Summary Well: SRU 24-15 API Number: 50-133-20609-00-00 Field: Swanson River Field Surface Co-Ordinates: Sec 15,, T8N, R9W W SeW SM Borough: Kenai Borough Primary Target Depth: Hemlock H3-5 10850'TVD State: Alaska TD Depth: 11710'MD/ 11494.83'TVD Rig Name/Type: Arctic Fox/Double Suspension Date: N/A Primary Target: Hemlock Formation Permit to Drill: 213007 Spud Date: March 16, 2013 Ground Elevation: 288.90 AMSL Completion Status: Run 5"liner RKB Elevation: 307.60 AMSL Classification: Development Oil Secondary Target: Hemlock HKT Depth: 10980'MD/10790'TVD TD Formation: Hemlock Formation TD Date: April 19, 2013 Days Drilling: 35 Days Testing: N/A 2.2 Hole Data FIT Hole Maximum Depth TD Mud Dev. Casing/ Shoe Depth (PPM Section MD TVDSS Formation (ppg) Om) Liner MD TVDSS (ft) (ft) (ft) (ft) Conductor 72 +235.60 Recent Conductor 72 +235.60 n/a 13-1/2" 3030 -2716.14 Sterling 10.2 0.13 10-3/4" 3023 -2709.14 13.5 9-7/8" 9576 -9172.58 Tyonek 12.8 21.30 7-5/8" 9563 -9160.42 13.4 6-3/4" 11710 -11187.23 Lower 11.5 15.79 5" 11699 -11176.64 Hemlock 2.3 Well Synopsis. SRU 24-15 is the fourth in a series of grass roots wells drilled by Hilcorp in 2012-2013. All applications and permits are for Single Zone Oil Development. The program goal for Hilcorp's current planning and development is to fast track all oil assets to production. The plans and logistical considerations for each successive well is to drill, log, case, complete, perforate and produce Hemlock Formation intervals while limiting adverse safety, health and environmental issues, hole problems or production set-backs. A summary of SRU 24-15 reveals 10 problematic days while drilling, hole cleaning, casing and cementing the intermediate hole section from 8442'to 9576',wireline logging failures and cementing concerns. Most problems were initiated by major recurring lost circulation just below the 10-3/4"shoe in the exposed Sterling Formation and compounded by very high gas occurring at the same time. There were 4634 barrels of mud and another 402 barrels of lease water lost to formation in this time period and 822'of drilling with gas over 1000 units. Logging runs in the intermediate section were unable to get past 7990', leaving a critical 1586'of hole unlogged, and in the production section there was very limited data when the logging tools were stuck at 11385'and had to be stripped out. There was significant lost circulation during the cement jobs at both the intermediate and production casing points. 4 CANRIG Hilcarp Alaska,LLC SRU 24-15 2.4 Daily Activity Summary 3/14/2013: General rig up operations. Winkelman arrives on location. Spot and power up Canrig logging unit. Connect phone line. Continue all rig-up operations. 3/15/2013: General rig up operations. Silva arrives with computers from town. Continue to rig up unit. Continue all rig-up operations. 3/16/2013: Continue all rig up operations. Pick up from pipe shed, make up, rack back in derrick and drift 25 joints total 5" HWDP (plus jars)and 80 joints total 5"drill pipe. Clear and clean rig floor. Rig down spinners. Move 13.5"bit,TIW valve,dart valve,dog collar and collar slips to rig floor via the beaver slide. Insulate high pressure mud line. Check sensors. Pick up, make up and run in initial drill-out BHA (13.5" bit, motor, stabilizer,two NM pony flex collars,crossover,1 stand HWDP)and tag up at 72'(base of conductor). Stand back in-string stand of HWDP. Pick up and make up MWD collar and one stand of HWDP. Flood conductor using hole fill pump. Tighten bolts on riser nipple. Break circulation and test high pressure mud lines to 2000psi. Wash through 16"conductor shoe at 72'and Spud Well(at 10:44 Hours). Drill ahead with 13.5"bit from 72' to 370'. Circulate bottoms up and continue to circulate and clean hole (additional 1500 strokes). Monitor well. Pull out of hole on 5 stand wiper trip from 370'to 70'. Make up and run-in completed final lower directional assembly(bit,motor, NM stabilizer,pony NM flex collar,MWD,UP,NM filter sub,2 NM flex collars, crossover) to 137'. Continue running in with 5" HWDP and jars to 321'. Break circulation and wash down stand of 5" HWDP from 321'to 370'. Continue drilling ahead from 370'to 766'. 3/17/2013: Drill ahead from 766'to 2061'. Circulate bottom up and continue to circulate and condition hole until shaker screens clean up (additional 9500 strokes). Pull out of hole from 2061' to 291' on wiper trip. Observe tight spots at 1585' and 1212'on way out. Service top drive and grease crown. Run back in hole from 291' to 1998'. Kelly up, break circulation and wash down from 1998' to bottom at 2061'. Continue circulating while prepping to re-calibrate MWD block height sensor. No recordable wiper gas. Perform block height calibration. Continue drilling ahead from 2061'to 2253'. 3/18/2013: Continue drilling ahead from 2253'to surface casing point at 3030'. Circulate bottoms up and continue to circulate and condition until the hole has"cleaned up"as per the mud engineer. Pull out of hole on wiper trip from 3030'to 1715'. Pull tight at 2026' on way out. Run back in hole from 1715'to 3007'. Work through tight spot at 2120'on way in. Wash down last single from 3007'to bottom at 3030'. Circulate bottoms up. Record 79 units of wiper trip gas. Build and pump around high viscosity sweep. Break circulation(while pumping around sweep) to also drop a carbide. Continue to circulate around sweep and carbide, but hole volume indicators by each method are inconclusive. Build and pump around nut plug sweep. Hole volume measurements are still inconclusive. Cease pumping. Pull out of hole from 3030'to top of 5"HWDP at 927'. Monitor well. Pull and rack back HWDP and jars(13 stands)to 137'. Pull, break, inspect, lay down and off load directional assembly. Grade bit. Clear and clean rig floor. Prep for running surface casing. 5 CANRIG Hilcorp Alaska,LLC SRU 24-15 3/19/2013: Remove directional tools from pipe shed and unneeded tools from rig floor. Pick up single,break head pin from full-open safety valve and make up wear bushing running tool. Pull wear bushing. Prep and rig up to run 10 3/4"casing. Lay down short 5"elevators and bails. Pick up casing long bails. Make up full-open safety valve to 10 3/4"crossover. Lay down drill pipe make-up tongs. Upload (via beaver slide)false rotary table,dog collar,elevators and slips to rig floor. Rig up Weatherford casing-running equipment. Rig up casing tongs. Rig up fill line to pits. Hold pre-job safety and operations meeting on procedures for running surface casing. Pick up, BakerLoc threads, make up and run in 10 3/4"shoe assembly to 125'. Install stop ring and bow spring centralizer on #1 and #2 joints. Fill float joints and ensure proper operation of float equipment. Continue running in hole with 10 3/4"surface casing from 125'to 2994'. On way in with casing, install 1 bow- spring centralizer on every even joint,fill each joint on the fly and top off every 10 joints to ensure balanced displacement. Pick up and make up pup and hanger to landing joint. Remove false table. Land hanger at 3023.48'. Note up weight 145K and down weight 120K at time of landing hanger. Make up cementing head (with plugs pre-loaded) and cement hose to landing joint. Break circulation, fill casing and begin circulating and conditioning mud for cement job. Reciprocate pipe while circulating. Rig down and lay down Weatherford casing-running equipment. Clean rig floor. While circulating,accidentally transfer Mud Push fluid into active mud system. Continue circulating and reciprocating while waiting for new Mud Push product to arrive from town. Prep cellar for later nipple down of surface equipment. Hold pre-job meeting with Schlumberger cementers and all third-party hands on cement job procedures. Schlumberger begins batching up cement and primes cement pumps. SLB pumps ahead 5 bbls of water (independent of rig) to fill cementing lines and pressure test for 3 minutes each to 1000psi Low and 3000psi High. Pump 40 bbls of 11.0ppg Mud Push II at 6.5bpm with the rig pumps and then shut down. Switch over and line up to SLB cementing lines. SLB finishes batching cement and drops bottom plug. Begin pumping cement, reciprocating 2 times every minute, after verifying plug drop. Pump 216 bbls(493 sacks)of 12.0 ppg Class A lead cement(at 5.5 bpm)and follow with 53 bbls (244 sacks) of 15.4ppg tail cement(at 4.0 bpm). SLB drops top plug, verifies plug drop and pumps ahead 5 bbls water before switching over and lining up to rig pumps. Using rig pumps, chase and displace cement(230 bbls away at 5.6bpm/750psi,250 bbls away at 5.6bpm/900psi,260 bbls away at 2.0bpm/500psi) with 277.5 bbls of 10.0 ppg spud mud. Begin diverting all returns to cellar box(starting at 22:20 hrs). Did not bump plug. Reached 800psi at close of pumping. Hold pressure at 700psi for 3 minutes after shutting down pumps. Cement in place (at 22:50 hrs). Bleed off and observe floats holding. Note 0.75 bbls flow-back to cementing truck after maximum pressure reached. Obtained 2 samples of cement returns prior to final pressure and 2 samples from mixing tub. Pumped 30% excess on both lead and tail cement and had full returns throughout the job. Blow down cement lines back to truck. Break, remove and lay down cementing head and associated equipment. Start flushing surface lines,cellar and stack. Release Schlumberger. Blow down mud lines to rig. Back out and pull landing joint. Position pack-off for installation. Continue cleaning cellar. 3/20/2013: Wash bowl in casing head. Make up landing joint to pack-off running tool. Position and land pack-off in casing head. Run in lower lock-down sleeve. Pull and back out landing joint. Lay down pack-off running tool. Blow down full open safety valve and 10 3/4"crossover. Continue cleaning out cellar. Clean surface equipment in pits. Begin nipple down procedures. Begin cleaning pits. Break down and remove hole fill line and jet line. Remove accumulator lines from annular and knife valve. Remove riser nipple,knife valve, 24"diverter line,21 ❑"annular preventer,diverter spool,5'spool and double-studded adapter flange. Begin changing out liners on all three mud pumps from 6" to 5". Nipple-up wellhead as per Cameron Services. Inject plastic packing. Test pack-off void to 3000psi for 30 minutes. Nipple up all BOPE. Install 18"spool,11" annular preventer,torque cap and locking pins inside the annular preventer and double gate rams. Load mud cross and single gate rams in cellar and continue BOPE nipple-up. Install kill line and choke hose. Open top and bottom ram doors and clean out ram cavities. Finish cleaning out pits. Tighten flanges on choke and kill lines. Change out bottom rams to 5" solid-body. Remove from annular preventer an improvised seat installation guide tool ("potato masher") made up on 4"joint. Install riser pipe and flow line. Break and lay down single for"potato masher". Change out elevators. Finish cleaning pits and changing out mud pump liners. Install drip pan,hole fill line and flow line jets. Off Load all tools on rig floor. Check all lines. Rig up to test BOPE. Break out and lay down crossover for TI W valve. Make up rocket launcher to top drive and torque up for testing. Function test BOPs. Make up test plug and test joint. 6 CANRIG Hilcorp Alaska,LLC SRU 24-15 3/21/2013: Pull test joint. Break and lay down test plug. Make up and torque up test joint with 12'pup,two 5' pups,ported sub,full-open safety valve and dart valve. Make up test plug. Run in hole test joint and test plug. Fill stack with fresh water. Rig up test equipment. Test annular preventer to 250psi Low/2500psi High for 10minutes each. Test all other BOPE(upper pipe rams, lower pipe rams, blind rams, HCR choke, HCR kill, manual choke, manual kill, 3 1/8" Demco on kill, upper IBOP, lower IBOP, TIW valve, dart valve, choke manifold valves 1-15)to 250psi Low/4000psi High for 10minutes each. Perform accumulator drawdown test. Tighten flange on choke line. Lay down BOP test equipment. Break off TIW valve and dart valve from the test joint. Blow down kill line and choke line. Put steam on HCR choke line and then blow down. Install wear ring and run-in lockdowns. Lube rig. Pick up, make up,and run in hole"dumb iron"drill-out assembly as per the Baker directional driller. Continue in hole,picking up and making up singles of 5"drill pipe out of the pipe shed. Tag top of cement at 2894'. Make up top drive and break circulation. Circulate and condition mud. Drill from 2894'to 2909'. Circulate bottoms up. Hold pre-job meeting on procedures and safety for casing test. Rig up to test surface casing. Test surface casing to 1500psi for 30 minutes. Rig down test equipment and break down kill line. Resume drilling on cement. Drill cement from 2909'to 2931'. Pick up to make a connection and top drive generator ceased running. Troubleshoot top drive failure. 3/22/2013: Continue to troubleshoot top drive failure and discover air in fuel line. Discover that hole depth is wrong and adjust deeper,from 2931'to 2962'. Continue drilling out remaining shoe track(cement, shoe at 3023', rathole)from 2962'to 3030'. Drill 20'of new hole from 3030'to 3050'. Circulate bottoms up. Displace 10.0ppg Spud Mud with 11.5ppg/6% KCUPHPA EZ-MUD. Obtain clean 11.5ppg returns. Stand back one stand of drill pipe to 2993'. Prep for F.I.T. Make up TIW valve, head pin,tee,sensator,chicksan, Lo-Torque valve, cement line). Perform F.I.T. with injection pump. Test to 13.5ppg EMW (315psi). Rig down test equipment. Pick up and make up first stand from derrick and wash down drill string from 2993'to bottom at 3034'. Drill from 3030'to 3247'. Circulate bottoms up and continue circulating until hole is clean. Pull out of hole from 3247'to top of HW DP at 851'. Pull and rack back 5"HWDP,jars,and flex collars to surface. Break and lay down bit sub and bit. Grade bit. Pick up, make up and run in hole directional tools (9 7/8" PDC bit, motor,NM stabilizer,2 pony flex collars,MWD, UP,NM filter sub,2 flex collars)and first stand of 5"HWDP to 198'. Perform shallow hole test on MWD function. Test successful. Continue running in hole with 5"HWDP (and jars)from 198'to 927'. Prep for picking up 5"drill pipe singles from pipe shed. Pick up,make up and run in hole 5"single joints of drill pipe out of the pipe shed from 927'to 2878'. 3/23/2013: Fill pipe at 2878'. Move spinner hawks to offside drillers side. Grease top drive,blocks,wash pipe and draw works. Run in hole with 5" drill pipe from 2878'to 3070'. Wash and ream through float collar at 2939' and casing shoe at 3023'. Wash in hole from 3070' to 3247', performing Gamma Log MAD pass. Continue drilling ahead from 3247'to 4652'. Begin building mud weight from 11.6ppg(after 3830')to 12.5ppg (12.0 at report time). 3/24/2013: Drilling ahead from 4652' to 4774'. Circulate bottoms up. Circulate around Hi-Vis sweep and circulate until shakers are clean. Monitor well. Pump dry job. Pull out of hole from 4774'to 3073'on wiper trip. Record tight spots on way out, pulling 30-50K over at 4350', 4295'-4225', 4161', 4117', 4063'-4042', 3992'-3985',3925',3668',3587'-3584',3565'-3560',3545'-3540',3992',3392.1,3188'-3182',3166'. Monitor well. Run back in hole from 3073' to 4713'. Kelly up. Wash down from 4713' to bottom at 4774'. Pump around Hi-Vis sweep. Record 75 units of wiper gas. Continue drilling ahead from 4774'to 6040'. 3/25/2013: Drilling ahead from 6040' to 6289'. Circulate bottoms up. Circulate around Hi-Vis sweep and circulate until shakers are clean. Monitor well. Pump dry job. Pull out of hole from 6289'to 3066'on wiper trip. (Record 27 significant tight spots on way out of hole, pulling well over for 193'total from 5960'to 3775'). Monitor well. Slip and cut 100' of drill line. Service top drive, blocks and draw works. Clear and clean rig floor. Run back in hole from 3066'to 6225'. (Record 29 significant tight spots on the way in the hole,working through 199'total from 3430'to 6119'). Kelly up and wash down from 6225'at 6289'. Pump around Hi-Vis sweep. Record 517 units of wiper gas. Continue drilling ahead from 6289'to 6604'. 3/26/2013: Continue drilling ahead from 6604'to 7551'. 7 CANRIG Hilcorp Alaska,LLC SRU 24-15 3/27/2013: Continue drilling ahead from 7551'to 7615'. Circulate bottoms up,working pipe. Prep for Wiper Trip. Pull out of hole from 7615'to 6983'. Pump 23 bbl/ 14.4ppg dry job. (Work tight spots at 7325'-7321', 7195'-7194',7182'-7179'). Continue pulling out of hole from 6983'to 6607'. (Work tight spots at 6908'-6906', 6749'-6741', 6636'-6633', 6614'-6610'). Back ream out of hole from 6983' to 6036'. Pump around Hi-Vis sweep. Pull out of hole from 6036'to 4524'. Circulate out. Pull out of hole from 4524'to 4271'. Run back in hole to 4395'. Check for flow. Clear and clean rig floor. Hold pre-job meeting on procedures and safety for picking up drill pipe. Prep to pick up 5"drill pipe out of pipe shed. Pick up, make up and run in hole single joints of 5"drill pipe from 4395'to 7557',filling pipe when needed. (Work through tight spots at 4810'-4831', 5467'-5495', 5580', 5707', 5846', 5855', 5910', 5974', 7547'on way in). Kelly up on last stand in derrick and break circulation. Begin pumping around Hi-Vis sweep. Wash down from 7557'to bottom at 7615' Record 1454 units of wiper gas while washing down. Continue drilling ahead from 7615'to 7718'. 3/28/2013: Continue drilling ahead from 7718'to 8164'. 3/29/2013: Continue drilling ahead from 8164'to 8442'. Circulate bottoms up and continue to circulate,clean and condition hole prior to bit trip. 3/30/2013: Finish circulating hole clean. Monitor well. Pull out of hole from 8442' to 7496'. Monitor well. Pump 30bbl/14.1 ppg dry job. Pull out of hole from 7496'to 4017'. (Pull through tight spots and wipe hole clean on way out at 7406',7329',7320',7315',7245', 7180',7176',7180'). Pump 20bbl dry job. Rig up to lay down 5"drill pipe. Pull out of hole breaking and laying down 5"drill pipe singles in pipe shed from 4017'to 990'. (Pull through tight spots and wipe hole clean on way out at 27 points on the way out). Continue pulling out of hole racking back in derrick,one stand of 5"drill pipe,5"HWDP and jars,and flex collars with filter sub. Clean out filter sub. Pull, break and lay down remaining bottom hole assembly (UP, MWD, 2 pony flex collars, NM stabilizer, motor, bit). Clear and clean up rig floor. Pick up, make up and run in hole new directional bottom hole assembly(new bit, new motor, NM string stabilizer,2 pony compressive collars, new MWD, UP) to 73'. Continue running in hole with 14 stands of directional assembly components out of the derrick(NM filter sub,2 compressive flex collars,25 joints of 5"HWDP with new set of jars)from 73'to 926'. Prep to pick up single joints out of the pipe shed. Continue running in hole,picking up and making up singles of 5"drill pipe,from 926'to tight spot at 3229'. Work through 3229'tight spot and several more tight spots to 3511'. Kelly up,fill pipe and ream down from 3511'to 3543'. Zero gain-loss after filing pipe and monitor. No change in fluid levels. Kelly up and ream down from 3543'to 3574'with no gains or losses. Run in next two joints from 3574' to 3636' on elevators. Kelly up. Start up pumps (at 20:04 Hrs) and begin losing mud . (Losses appear to start 30 seconds before pumps are even kicked on). Hole is not packed off(no increase in pressure differential). Losses continue with pumps on and pumps off. Attempts to progressively fill hole from backside fail. Pull out of hole from 3636'to 3009'(just inside shoe). Losses continued while pulling out,but pumped 23bbl/50 ppb LCM pill before reaching shoe. Kelly up. Successfully halt losses and fill hole with hole fill pump and mud pump through kill line (at 3 bpm). (Note that 321 bbls were lost in first 77 minutes before stabilizing the hole). Quickly begin mixing 10.0ppg"emergency"mud and adding new fluid to the hole every 5 minutes. Keep hole full with trip tank while continuing to build replacement mud volume(to 600 bbls of 10ppg). Mud engineer's estimate of total losses is 620 bbls (at 24:00 Hrs). 8 CANRIG Hilcarp Alaska,LLC SRU 24-15 3/31/2013: Continue building 600 bbls of 10.0ppg mud. Keep hole filled out of the trip while building mud. Fluid loss rate of 1 bbl/min while building mud.Build 50 bbl LCM pill. Fill pipe before tripping in hole.Note fluid floss rate of 6 bbls/min. Run in hole with single joints from 3009'to 3478'. Pump 50 bbls of 50 lb/bbl LCM and spot at 3478'.Lose 74.5 bbls while spotting pill. Pull and rack back 1 stand of drill pipe. Run hole fill across the top of the trip tank. Note fluid loss rate of 15 bbls/hr. Build and condition an additional 200 bbls of mud. Continue monitoring loss rate with hole fill across trip tank. (Note 24 bbls required to keep hole filled while building and conditioning latest mud). Change out shakers screens to 80s. Work pipe while continuing to monitor loss rate at trip tank. Roll pumps to verify that mud lines and drill pipe are clear. Pump surface to surface at 3 bpm, (MW in: 10.3, MW out: 11.1). Circulate until 10.7ppg mud all the way around. Gain/loss remained steady while circulating. Run in hole from with single joints from 3383'to 3984',working tight spots on way in. Break circulation at 3984'and pump 3000 strokes. Continue running in hole with stands of 5"drill pipe out of derrick from 3984'to 5268',working tight spots on way in. Displacement was as projected,with no additional fluid losses. Kelly up at 5268'.Break circulation and fill pipe.Begin circulating surface to surface at 3 bbls/min and build to 4.5 bbls/min. Circulate al the way around with no fluid losses. Circulate 11309 total strokes and record 106 units maximum gas.Continue running in hole from 5268'to 7460',filling pipe every 20 stands on way in, working through tights spots (5355'-5342', 5462'-5484', 5593', 5685'-5714', 5800'-5810', 6108'-6114') and recording 250 to 300 units of background gas. Pipe displacement as projected, with no additional fluid losses. Kelly up and fill pipe.Circulate surface to surface(starting at 3 bbls/min and increasing to 4.1 bbls/min). Circulate 17712 total strokes and record 587 units maximum gas. 4/01/2013: Finish circulating at 7460'.Continue running in hole out of derrick from 7460'to 8090'.Kelly up and pump 2000 strokes, staging up from 3 to 4bpm. Note no additional fluid losses on displacement. Continue running in hole from 80900 to 8377❑.Kelly up,break circulation and stage up pump output to 370gpm.Wash down from 83770 to 84190, backing off pumps to keep riser from running over. Record 450 units of background gas.Continue to condition mud,adding water at 10 bbls/hr with 10ppb LCM.Observed maximum 1751 units of gas while conditioning mud.Stage pumps up to 475gpm (2000psi,70%flow).Wash down from 8419'to bottom at 8442'.Check for flow.Screen up shakers 1 and 2 to 170/140 and shaker 3 to 200's.Screen down shakers to 80s.Stage pumps up to 460gpm(2280psi,50%flow,l0rpm).Continue reaming and working last stand while conditioning mud. Stage pump output up to 510gpm. Static mud weight in/out at 11.6/11.5+ppg. Continue reaming and working last stand while conditioning mud. Stage pump output up to 517gpm. Static mud weight in/out at 11.8/11.6+ppg. Continue reaming and working last stand while conditioning mud. Stage pump output up to 520m. Static mud weight in/out at 11.9+/11.9ppg. Pull 1 more stand out of hole to not lose angle on bottom while circulating. Continue working pipe. Achieve 11.9+ mud weight all the way around. Note background gas increased to 1400 units while building mud weight.Observe maximum connection gas(from last stand pulled)of 2147 units.After achieving 12.2ppg mud,run back in hole from 8377'to 8439'. Kelly up and wash down from 8439'to 8442'.Continue drilling ahead from 8442'to 8580'. 4/02/2013: Continue drilling from 8580' to 8792'MD. Drill from 8792' to 9153' MD. 20 PPB LCM in mud. Average loss rate from 12:00 to 18:00 was 7.1 bbls/hr.Average loss rate from 18:00 to 24:00 was 2.5 bbls/hr. Total losses from 12:00 to 24:00 were 66.3 bbls. Max gas observed 3421 units. 4/03/2013: Continue drilling ahead from 9152' MD to 9513' MD. Circulate bottoms up. Perform FIT test to determine if hole can withstand a 12.8 ppg mud weight. Pressured up with injection pump and it settled at 75 psi, mud weight equivalent of 12.8 ppg, at 3630' which was zone of concern. Continue to drill ahead from 9513' MD to 9576' MD. Circulate bottoms up. 9 CANRIG Hilcorp Alaska,LLC SRU 24-15 4/04/2013: Continue circulating bottoms up at 9576'.(Note MW in 12.4+/MW out 12.4+). Monitor well for 10 minutes. (Well flowed for 7 minutes and was static last 3 minutes). Pull out of hole clean from 9576'to 8940' on wiper trip. Run back in hole from 8940'to 9520'.Kelly up and break circulation.Stage up pump rate from 3 bph to 11.5 bph.Wash down from 9520'to bottom at 9576'.Circulate bottoms up and continue to circulate and condition mud. Record 1503 units of wiper gas. Build mud weight to 12.6ppg. Monitor well for 10 minutes. (Well flowed for first 5 minutes and then lost volume for last 5 minutes). Pull out of hole from 9576'to 8000'. (On way out,pulled 30K over at 8546',8522',8504',8475').Kelly up at 7998'.Stage up pump rate from 3 bpm to 11.5 bpm and observe progressive loss of 50 bbls of fluid.Stop reciprocating and rotating and stage pumps back down to 3 bpm. Pump 28 bbls of LCM at 3 bph and then stage to 4 bph. Observe 820 units of gas at bottoms up and additional progressive loss of 120 bbls of fluid. Pull out of hole from 7998'to 6977'. (On way out, pulled 30K over at 7157'). Kelly up and circulate at 3 bpm. Observe reduced flow to 9% almost immediately and no returns after 700 strokes.Begin circulating on back side.Pump 38bb1/12.6ppg/50ppb LCM pill out of string(3562 strokes)and shut down pumps. Fluid losses continue at accelerated rate.Attempts to fill hole with the trip tank failed. Hole filling never caught up with the losses. Open up kill line. Pump 40bb1/12.6ppg/60ppb LCM pill down back side without returns, then follow with 91.3 bbls of mud. Monitor movement of fluid and shut pumps off just before fluid enters the flow line. Fluid levels in the casing drop rapidly. Pump 20.7 bbls more with trip tank pump, then 20.6 bbls with rig pumps through the kill line, attempting to raise fluid level back up to the flow line. Fluid levels started dropping immediately after pumps are shut down. Pump 20 bbls from trip tank to fill back side and observe fluid level drop. Continue to fill back side by pumping 10 bbls of fluid every 15 minutes.When the LCM pill finally reaches the base of the casing, the fluid level stopped dropping after each pump shut down and started to fill up the backside.With back side being filled, pump down the drill pipe with 61.3 bbls of mud, and progressively lose another 50.4 bbls. Shut down pumps. Fill back side with trip tank pump.A loss rate of 20 bbls/hr was established after finally gaining consistent returns. Pull out of hole from 6985'to 4018'. (Work through tight spots on way out at 6737',6667', 6631'-6606',6545',6431',6400',6112'-6104',5816-5784',5064'-5054',4946-4907',4585'-4578',4053'-4044', 4035'-4028'). (Tally of daily mud loss is 674.2 bbls, and losses for entire well is 2277.4 bbls). 4/05/2013: Prep and rig up to lay down 5"drill pipe. Pull out of hole breaking and laying down in pipe shed 31 single joints of drill pipe from 4018'to 3038'. (Pull 30K over on way out at 3780',3656',3625'). Lose 19 bbl of fluid pulling and laying down singles. Kelly up. Pump(at 3bpm)a 58 bbl (50ppb) LCM pill (1282 strokes)and chase with 61.4 bbls mud(1360 strokes).Lose 5.0 bbls while circulating. Monitor fluid loss and lose 24.1 bbls total in 90 minutes.Continue to condition mud at surface to maintain 12.60ppg. Line up to injection pump and squeeze 4.5 bbls of 12.6ppg mud. Record staged pressure gradient drawdown of-8/-15/-17psi respectively at 600/1200/1800 strokes pumped.Continue to monitor mud fluid losses at trip tank,strapping mud levels every 10 minutes while slowly reciprocating pipe. Lose 11.5 bbls total over 110 minutes. Stop reciprocating and lose another 2.5 bbls in 20 minutes. Pull out of hole breaking and laying down in pipe shed 10 single joints of 5"drill pipe from 3038'to 2723'. Pump(at 3bpm)42 bbl(60ppb)LCM pill(927 strokes)and chase with 56.0 bbls mud(1234 strokes). Lose 29.2 bbls while circulating. Blow down top drive and mud line. Pull out of hole breaking and laying down in pipe shed 57 single joints of drill pipe from 2723'to top of HWDP at 926'. Pull out of hole, racking back in derrick, 5"HWDP(and jars)and 5"compressive collars with filter sub to 73'.All fluid losses while pulling pipe monitored at trip tank.Clean out filter sub.Pull,break and lay down remaining bottom hole assembly(UP, MWD, 2 pony 5"compressive collars, NM stabilizer, motor, bit). Flush and drain MWD and motor. Inspect and grade bit.Clear and clean rig floor. Prep to test BOPE.Break down old test joint.Make up stack washer and flush all ram cavities and annular. Make up test joint. Pull wear ring. Run in hole test joint and test plug. Fill stack with fresh water. Rig up test equipment. Test annular preventer to 250psi Low/ 2500psi High for 10minutes each.Test all other BOPE(upper pipe rams, lower pipe rams,blind rams, HCR choke, HCR kill, manual choke, manual kill, 3 1/8" Demco on kill, upper IBOP, lower IBOP, TIW valve,dart valve,choke manifold valves 1-15)to 250psi Low/4000psi High for 10minutes each. Fluid losses continue to be monitored at trip tank while testing BOPE. (Total mud loss for last 24 hours is 146.9 bbls, and losses for entire well is 2424.3 bbls). 10 CANRIG Hilcorp Alaska,LLC SRU 24-15 4/06/2013: Continue testing all BOPE and observe significant group of failed tests during the initial phase. Valves re-opened, re-greased, re-conditioned and re-tested before passing inspection included:manual kill, manual choke, HCR kill, HCR choke,and CMVs 2,3,6,10,11,12.All were eventually successfully re-tested to 250psi Low/4000psi High for 10minutes each. In addition,the base seat of the upper rams'wear plate was leaking and required diagnostic troubleshooting procedures. Bleed off BOP test pressure. Perform accumulator drawdown test. Bleed off accumulator pressure. Pull test joint and test plug.Open up top rams. Remove old wear plate and replace it with new wear plate. Re-test choke valve 11 during installation of wear plate.Close upper ram doors. Pick up and re-install all test equipment. Re-test upper pipe rams and manual choke to 250psi Low/4000psi High for 10minutes each. Blow down, pull, rig down and lay down all test equipment. Install wear ring.Clear and clean rig floor.Prep to make up bottom hole assembly.Perform derrick inspection. Fill hole. Pick up and make up short clean-out assembly(mill tooth bit, bit sub, NM stabilizer) to first stand of HWDP and run in hole. Continue running in hole with HWDP and jars out of derrick to 798'. Break circulation, staging up to 4bph, and monitor well. Prep to pick up single joints of 5"drill pipe out of the pipe shed. Continue running in hole, picking up from pipe shed, and making up 60 singles of 5"drill pipe to 2689'. Continue running in hole with 5 stands of 5"drill pipe from the derrick to 3004'. Kelly up and fill pipe. Circulate surface to surface(7508 strokes). Record 1175 units maximum gas. Run in hole 3 more stands to 3193'. Kelly up.Shut annular preventer.Open HCR kill valve. Pump and squeeze 25 bbls of 50ppb LCM into formation. Bleed off pressure. Pull out of hole 5 stands to 2878'. Kelly up.Shut annular preventer.Open HCR kill valve. Pump and squeeze 25 bbls of 80ppb LCM into formation. Keep 110psi on well for 30 minutes.Bleed off pressure. Close HCR kill valve. Open annular preventer. Run in hole from 2878' to 4551'. Slow down running in the 18 stands to attempt pushing mud away. Kelly up and break circulation. Circulate bottoms up and continue to circulate 10420 total strokes to condition hole and mud. Record 2247 units maximum gas. (Total mud loss for all activities last 24 hours is 154.2 bbls, and total losses for entire well is 2578.5 bbls). 4/07/2013: Finish circulating and conditioning hole.Continue running in hole from 4551'to 7048'.(Note 15.5 bbls lost running in). Kelly up and break circulation. Fill pipe, circulate bottoms up and continue to circulate hole(14172 strokes at 3 bpm/350psi). Record 1676 units maximum gas.Continue running in hole from 7048' to tight spot at 8579'(set down 70K). Pick up, kelly up and break circulation.Ream down rotating from 8564'to 8627'. Back-ream same stand to 8564'.Stop rotating and work stand for 11 slow,full reciprocations. Record 2326 units maximum gas, and record gas over 1000 units for 10955 strokes. Continue running in hole from 8627' to tight spot at 8853' (set down 55K). Pick up, kelly up and break circulation. Ream down rotating, washing through tight spots,from 8816'to 9006'. Record 634 units maximum gas.Continue running in hole on elevators from 9006'to 9574' (just off bottom). Kelly up and break circulation. Fill pipe, circulate bottoms up and continue to circulate 30431 total strokes. Slowly work stand while rotating for 5 full reciprocations (at 394gpm) and without rotating for 8 full reciprocations (at 488gpm). Record 2311 units maximum gas, 2228 units of Trip Gas and gas over 1000 units for 13493 strokes. Cease pumping and begin pulling out of hole on 15 stand wiper trip from 9574'to 8627'. Run back in hole from 8627'to 9574' (just off bottom). Kelly up and break circulation. Fill pipe, circulate bottoms up and continue to circulate 18326 total strokes. Slowly work stand while rotating for 8 full reciprocations (at 470gpm). Record 2598 units maximum gas, 1933 units of Wiper Gas and gas over 1000 units for 6920 strokes.Turn pumps off for 20 minutes to simulate a connection and continue to slowly work pipe for 2 reciprocations while the pumps are off.Check for flow and swab.Break circulation,fill pipe,circulate bottoms up and continue circulating.Record 2361 units maximum gas,2150 units of"pumps-off"gas and gas over 1000 units for 6920 strokes. Note that the maximum gas peak appears to originate from a sand at 8220'.Continue circulating after bottoms up of simulation interval,and begin building up mud weight from 12.5ppg to 12.7ppg. (Total mud loss for all activities last 24 hours is 67.9 bbls,and total losses for entire well is 2646.4 bbls). 11 CANRIG Hilcorp Alaska,LLC SRU 24-15 04-08-2013: Continue conditioning and building mud weight to 12.7ppg. (Circulate 61569 total strokes from last monitoring with pumps off). Stop circulating and monitor well for 34 minutes. Quickly stroke pipe one time for 20' at start of monitoring to observe for swabbing or surging. Note fluid levels very slowly dropping. Resume circulating and circulate bottoms up from "pumps-off" interval with 12.6+ mud. Record 210 units maximum gas. Continue to circulate and build mud weight to 12.7ppg and condition mud for 25307 total strokes since last pumps off. Monitor well. Note fluid levels very slowly dropping. Pull out of hole from 9574' to 7996'. Kelly up,fill pipe and circulate while doing two long slow pipe reciprocations. Circulate bottoms up. Record 447 units maximum gas. Continue to circulate for 15226 total strokes. Continue pulling out of hole four more stands from 7996'to 7729'. Pump 30 bbl/13.7ppg dry job(822 strokes total). Pull out of hole from 7729'to 2689'. Monitor well at 3004'(inside shoe)and again at 2689'. Service top drive and draw works. Pull out of hole,breaking and laying down in pipe shed 60 single joints of 5"drill pipe from 2689'to top of HWDP at 798'. Monitor well. Pull out of hole racking back 5"HW DP and jars in derrick. Break and lay down NM string stabilizer, bit sub, mill tooth bit. Monitor all fluid losses at trip tank. Clear and clean rig floor. Prep to run wireline logs. Hold pre-job meeting on procedures and safety during wireline operations. Rig up Halliburton Wireline Services to run e-logs. Pick up, make up as per Halliburton, and run in hole first logging assembly (Run #1: hole finder, array compensated resistivity tool, short axis kit, regal standoff, wave sonic Insite, gamma telemetry tool). Unable to get logging assembly past 7990'after repeated attempts. Pull out of hole and change type of hole finder at base of assembly. Run back in hole first logging assembly with new hole finder(Run#2). Still unable to get logging assembly past 7990'after repeated attempts. Begin logging out of hole from 7990'. (Total mud loss for all activities last 24 hours is 48.0 bbls, and total losses for entire well is 2694.4 bbls). 04-09-2013: Continue logging out of hole(at 30 ft/min)from 7990'to 2980',and then pull out of hole. Break and remake new logging assembly with addition of flex joint,density Insite pad,spectral density tool(SDLT) and dual-spaced neutron (DSNT). (Note 4.50"OD of density tools). Add sources to neutron tools and run new logging assembly(Run#3)in hole to resistant bridge at 7990'. Work logging assembly and able to make some very slight progress to 7994', but again unable to get past 7994' after repeated attempts. Log out of hole with neutron-density tools (at 60 ft/min) from 7990' to 2980'. Pull out of hole to surface, pull neutron sources and break and lay down all tools. Decision made to try"short"assembly to get through blockage at 7994'. Make up new(31')assembly with only hole finder,array compensated resistivity tool,short axis kit and gamma telemetry tool and run in hole (Run#4). Run to 7994' and begin working tool. Again able to make some very slight progress to 7998', but unable to get past 7998' after many repeated attempts. Pull out logging assembly out of hole to surface. Break and lay down logging assembly. Rig down sheaves and all remaining Halliburton wireline logging equipment. Clear and clean rig floor. Prepare to run in hole with clean- out assembly. Pick up pre-made short clean-out assembly(mill tooth bit, bit sub, NM stabilizer), make up to first stand of HWDP, and run in hole. Continue running in hole with HWDP and jars out of derrick to 798'. Break circulation,fill hole and briefly and monitor well. Prep pipe shed to move and skate single joints of 5" drill pipe. Pick up and make up joints of 5"drill pipe out of the pipe shed and continue running in hole to 2689'. Break circulation,fill pipe and continue to circulate while performing rig service operations. Slip and cut 125' of drill line. Service and inspect draw works. Service brakes. Recalibrate block height encoder. Circulate 5161 total strokes and record 411 units maximum gas during rig service. Continue running in hole, with stands of 5"drill pipe out of the derrick,from 2689'to 4582'. Kelly up,break circulation and fill pipe. Circulate 1254 total strokes. Continue running in hole from 4582' to 6795'. Kelly up, break circulation and fill pipe. Circulate 1335 total strokes. Continue running in hole from 6795'to 9006'. Kelly up,break circulation and fill pipe. Circulate 933 total strokes. Continue running in hole from 9006'to 9511'. Kelly up, break circulation and fill pipe. Continue circulating and wash down from 9511'to 9574'(just above TD at 9576'). Reciprocate and stroke pipe while continuing to circulate. Record 2379 units maximum gas. Circulate bottoms up and continue circulating to 15779 strokes. Briefly shut down pumps for 8 minutes. Pump 512 strokes and place 20 bbl LCM pill in drill pipe. Monitor well. Pull out of hole 5 stands from 9574'to 9258'. (Total mud loss for all activities last 24 hours is 29.8 bbls, and total losses for entire well is 2724.2 bbls). 12 CANRIG int Hilcorp Alaska,LLC SRU 24-15 04-10-2013: Company man recognized that the rig failed to pump down the 20 bbl LCM until it was spotted in annulus. Briefly monitor well and then run back in hole the same 5 stands that were recently pulled. Run in hole from 9258'to 9511'. Kelly up, break circulation and wash down from 9511'to 9574' (just above TD at 9576'). Pump 2704 strokes and spot 20 bbl LCM pill in intended position at bottom of the hole. Stop pumping and monitor well. Pull out of hole 10 stands from 9574'to 8940'. Monitor well. Pump 578 strokes and spot 20 bbl/14.3ppg dry job. Record 109 units maximum gas at finish of pumping. Blow down top drive and mud line. Continue pulling out of hole and standing back in derrick next 50 stands from 8940'to 6479'. Continue pulling out of hole, breaking and laying down in pipe shed 110 single joints of 5"drill pipe from 6479'to 3004'. Kelly up. Break circulation,fill pipe and establish return flow(693 strokes). Then pump in quick succession a 25 bbl/80 ppb LCM pill,followed by 20 bbls of 12.7ppg mud,followed by 20 bbls of 13.7ppg mud,followed by 5 bbls of 12.7ppg mud(1446 more strokes). Stop circulating and monitor well. Record 151 units maximum gas at finish of circulating. Pull out of hole, breaking and laying down in pipe shed 70 single joints of 5"drill pipe from 3004'to top of HWDP at 798'. Monitor well. Pull out of hole,breaking and laying down in pipe shed 5" HWDP and jars. Break, lay down and off load NM string stabilizer, bit sub, mill tooth bit. Monitor all potential fluid losses at trip tank. Clean rig floor. Begin preparations for running 7 5/8"intermediate casing. Change out top rams to 7 5/8". Clear rig floor of unneeded tools. Lay down short 5" elevators and bails. Pick up casing long bails. Pull wear bushing. Install test plug. Rig up 7 5/8"test joint and test equipment. Test 7 5/8" rams to 250psi Low/4000psi High. Rig down test equipment and pull test joint. Make up full-open safety valve to 7 5/8"crossover. Lay down drill pipe make-up tongs. Upload(via beaver slide)false rotary table,dog collar, elevators and slips to rig floor. Rig up Weatherford casing-running equipment. Rig up casing tongs. Rig up fill line to pits. Hold pre-job safety and operations meeting on HILCORP-directed procedures for running 7 5/8"intermediate casing. Pick up, BakerLoc threads, make up and run in 7 5/8"shoe assembly to 125'. Install stop ring and bow spring centralizer on #1, #2 and #3 joints. Fill float joint and verify proper operation of float equipment. Continue running in hole with 7 5/8"intermediate casing from 125'to 730'. On way in, install 1 bow-spring centralizer on every odd joint, fill each joint on the fly and periodically top off to ensure balanced displacement. (Total mud loss for all activities last 24 hours is 23.5 bbls,and total losses for entire well is 2747.7 bbls). 04-11-2013: Continue running in hole with 7 5/8"(29.711b/ft) intermediate casing from 730'to 4032'. On way in, install 1 bow-spring centralizer on every odd joint, fill each joint on the fly and top off every 10 stands to ensure thorough displacement. Continue running in hole with 7 5/8"(29.71lb/ft)intermediate casing from 4052' to 5644',filling each joint on the fly and topping off every 10 stands to ensure thorough displacement. (Lose 27 total bbls on casing run from surface to 5644'). Make up cementing hose and swage to top of casing string. Begin pumping at 3 bpm. Start losing fluid immediately at start of pumping. Observe pressure loss and rapid drop of return flow to 0%. Pump 1144 strokes/51.6 bbls, but lose 56.1 bbls during pumping,and then immediately after shutting down the pumps, a 10.1 bbl loss in the first 5 minutes and 41.4 bbls over the next 31 minutes also with the pumps off. (All suggesting an overbalance loss along a zone of scraped and/or non-healed wall). Line up hole fill and trip tank to fill hole from back side. Unable to maintain steady return flow using only the hole-fill pump. Line up mud pumps to the kill line. Begin filling the hole using only mud pump #1 at 3 bpm. Pump a total of 119 bbls to keep the hole full. Continue running in hole with 7 5/8" (29.711b/ft)intermediate casing from 5644'to 6264',filling each joint on the fly and topping off every 10 stands to ensure thorough displacement. Using the kill line, pump a 55 bbl (80 lb/bbl) LCM pill down the annulus using the kill line. Build and increase mud volume 242 bbls. Still using the kill line,circulate down the annulus until returns are observed,then shut down the pumps and wait 5 minutes. Repeat this process 21 consecutive times and display apparent gain of 72.7 bbls, but net loss actually 169.3 bbls. Hook up cement line and swage,and pump 20 bbls down casing with no returns. Line up again through kill line and pump over the top of the hole. Pump 3899 strokes in 60 minutes (175.5 bbls) and lose 21.1 bbls. Fill up trip tank to circulate over the top of the hole. Build net 293.4 bbls in 158 minutes. Reduce mud weight in active system from 12.7ppg to 12.0ppg. Continue running in hole with 7 5/8"(29.71lb/ft)intermediate casing from 6264'to 7912', filling each joint on the fly and topping off every 10 stands to ensure thorough displacement. (Total mud loss for all activities last 24 hours is 827.8 bbls, and total losses for entire well is 3575.5 bbls). 13 CANRIG Hilcorp Alaeka,LLC SRU 24-15 04-12-2013: Continue building mud volume and begin building Mud Push for cement job. Continue running in hole with 7 5/8"(29.71lb/ft) intermediate casing from 7912'to 9534',filling each joint on the fly and topping off every 10 stands to ensure thorough displacement. Pick up and make up pup and hanger to landing joint. Make landing joint to top of 7 5/8"casing string. Run in and land hanger at 9563.75'. Note up weight and down weight at time of landing hanger. Make up cementing head(with plugs pre-loaded)and cement hose to landing joint. Rig down and lay down Weatherford casing-running equipment. Clean rig floor. Line up to cementing head, break circulation and pump 30 bbls of mud (670 strokes) with no returns. Line up hole-fill line to trip tank begin filling hole on back side. Monitor gain/loss every 10 minutes. Line up and pump another 63.5 bbls (1410 strokes) at 3 bpm through cement line to push bottom pill from 9563'to 7124'. Shut down pumps and hold pressure on casing. Turn hole-fill back on to keep hole filled. Monitor hole-fill loss every 10 minutes for 90 minutes. Pump 1300 strokes total with hole-fill and lose 17.2 bbls. Continue to keep hole filled across the trip tank. Transfer mud from rock washer to pits and begin cleaning rock washer to accept 260 bbl of lease water. Continue building mud volume and Mud Push. Pump 100 strokes through cement line every 5 minutes at 3 bpm to hold the pill in position. Pump 29 times over the next 251 minutes,with pressure on the casing starting at 390psi and finishing at 574psi. (Increase from 100 strokes to 200 strokes for last two pumpings). Note that fluid levels were dropping down the back side during initial pumping but stabilized and became static at 1300 total strokes pumped,and remained static for the last 1000 strokes to 2300 total. Stop pumping down pipe. Blow down cement line and blow air back through cement hose to Schlumberger cementers. Continue cleaning rock washer. Continue conditioning and prepping mud for cement job. Continue monitoring well on back side and maintaining fluid levels through the hole-fill line (out of pit#2). Keep track of losses during monitoring. Continue to circulate over the top of the well and tracking losses. Hook up lines to Schlumberger cementers. Fill rock washer with water. Fill trucks with water for standby use. Lose 31.1 bbls during all monitoring and cement job rig up operations. Hold pre-job meeting for all hands on procedures and safety for cement job. Schlumberger cementers start prepping for batching up cement. Switch over to Schlumberger cementers and then pump 5 bbls of water into cement lines and test without incident to 250psi Low/4000psi High. Line up back to rig,pump 50 bbls of 13.5ppg Mud Push II at 125 gpm/ 580psi with rig pumps and shut down. Observe only 31 bbls of returns. Record 1884 units maximum gas after only 1037 strokes while Mud Push was being pumped. Switch back over to Schlumberger cementers, who were batching up cement while spacer was being pumped. After dropping bottom plug, Schlumberger pumps 380 bbls of 14.0ppg Class A lead cement at 5.0 bpm/600psi with no returns,and then batches up and follows with 68 bbls of 15.3ppg tail cement at 5.0 bpm/600psi,also with no returns. Drop top plug. Displace cement with 437.5 bbls of lease water(at 4 bpm to catch cement at 125 bbls,2 bpm afterwards and,at 300 bbls away up to 3 bpm). Did not bump plug. Cement in place. Blow down and rig down cementing equipment. Rig down cementing head and circulating swage. (Total mud loss for all activities last 24 hours is 1059.0 bbls, and total losses for entire well is 4634.5 bbls). 04-13-2013: Continue rigging down cementing head and circulating swage. Drain stack. Pull landing joint. Make up crossover,pack-off running tool and pack-off. Run in and set pack-off. Run in lockdowns. Test void to 250psi Low/ 3000psi High for 10 minutes. Pull and lay down landing joint and pack-off running tool. Remove long casing bails and install short drill pipe bails. Install 5"elevators. Upload spinner hawks to rig floor and rig up. Hang and service rig pipe tongs. Install wear bushing(with 9.0"wear ring). Prep to lay down drill pipe and hold meeting. Break, lay down and offload 100 joints of 5"drill pipe from the derrick. Rig down spinner hawks. Pull and lay down mouse hole. Grease the choke and HCRs. Change out upper rams to 2 7/8"x 5"VPRs. Change the lower pipe rams to 4"hard body integral rams. Change out saver sub to HT-38. Change out bell guide to 4". Clear and clean rig floor. Remove and offload all remaining 5" tools and unneeded equipment. Move up and organize all necessary 4"tools. Prep and rig up to test BOPE. Pull wear bushing. Build 4"test joint with full operating safety valve(FOSV/TIW),dart valve,ported sub and test plug. Torque TIW and dart valves and install 4"test joint. Fill stack and choke manual kill line with water,and prep to test BOPE. Test all BOPE holding pressure levels on each test for 10 minutes. Test annular preventer to 250psi Low/2500psi High. Test other BOPE (top pipe rams, lower pipe rams, TIW valve,dart valve, lower IBOP,choke manifold valves 1-2-3-4-5-6-7-8-9-11-12-13-14-15)to 250psi Low/4000psi High. Rig down 4" test joint, TIW and dart valve. Blow down kill line and choke. Prep to run wireline logs. Rig up Pollard Wireline Services to run P/T thermal log. Pick up and make up Temperature/Pressure/Gamma tool and run in hole. 14 CANRIG Hilcorp Alaska,LLC SRU 24-15 04-14-2013: Run in hole with Pollard E-Line Services P/T thermal logging tool and tag at 9300'. Log out from 9300'to 2900'and establish top of cement at 6030'. Pull out of hole and lay down P/T logging tool. Rig down all Pollard wireline running equipment. Clean rig floor. Remove saver sub. Change out upper and lower IBOP. Change out hose to top drive grabber actuator. Make up saver sub. Prep and rig up to test BOPE. Make up test plug and head pin to 5"test joint. Rig up test manifold and testing equipment. Begin testing BOPE. Immediately experience multiple minor problems with test and blowout equipment. Troubleshoot through five failed test passes before finalizing a successful test. Test BOPE (blind rams, CMV#10, upper IBOP, lower IBOP)to 250psi Low/4000psi High. Bleed off accumulator and open top ram doors. Take apart and rebuild manual choke. Change out mud seal on upper ram door. Drain stack. Test remaining BOPE(5" test joint, top pipe rams, HCR choke, HCR kill, manual choke, manual kill) to 250psi Low/5000psi High. Bleed off accumulator. Rig down all test equipment. Blow down all lines. Install wear ring. Change out elevators to 4". Prep pipe shed to move and skate single joints of 4" drill pipe. Hold pre-job meeting on picking up drill pipe. Make up mule shoe on first joint of drill pipe. Pick up out of pipe shed, make up and run in hole (63)joints of 4"drill pipe to 1959'. 04-15-2013: Continue to pick up out of pipe shed, make up and run in hole(80 total)joints of 4"drill pipe to 2088'. Pull out of the hole from 2088' racking back 40 stands of 4"drill pipe in the derrick. Break off and lay down mule shoe. Clear and clean rig floor. Perform derrick inspection. Move directional assembly tools up to rig floor via beaver slide. Strap and tally 4" HWDP in pipe shed and remove box end protectors. Pick up, make up and run in hole directional assembly(6 3/4'bit, motor, NM string stabilizer, 2 NM pony compressive collars, MWD, pulsar, NM filter sub, 2 NM compressive collars, crossover,) to 139'. Orient motor to MWD during make up. Continue in to 172' on first joint of HT-38 4" HWDP and perform shallow function test of MWD tool (at 167gpm, 350psi). Blow down top drive. Rig up spinner hawks. Pick up, make up and run in hole 4" HWDP section (5 joints 4" HT-38 HWDP, Dailey jars, 13 joints HT-38 4" HWDP) from 172'to 745'. Load and strap joints of HT-38 4"drill pipe in the pipe shed. Pick up out of pipe shed, make up and run in hole 4"HT-38 drill pipe singles from 745'to 3890'. Install isolation valve on annular preventer,then close line and perform function test. Pick up out of pipe shed, make up and run in hole 4"HT-38 drill pipe singles from 3890' to 5714'. Set and calibrate block height sensor for BHI MWD. Continue to pick up out of pipe shed, make up and run in hole 4"HT-38 drill pipe singles from 5714'to 9355'. Prep and rig up to test casing. Test casing to 3000psi for 30 minutes. Continue running in hole from 9355'with 4"drill pipe out of the derrick. Tag cement (and take weight) at 9436'. Drill out cement to top of float collar/start of shoe track at 9479'. Drill out float collar and cement in shoe track to 9547'. Stop drilling out cement,circulate surface to surface and swap out lease water in well with 10.6ppg drilling mud. Circulate 13251 total strokes(at 250gpm/1450psi)and obtain 10.6ppg drilling mud around. Drill out remaining shoe tract(cement,shoe at 9563',rat-hole)to 9576'. Drill 24' of new hole from 9576'to 9600'. Begin circulating bottoms up. 04-16-2013: Circulate bottoms up and condition and clean hole. Pull out of hole from 9600'to 9546'. Close rams and prep for Formation Integrity Test. Make up TIW valve, head pin,tee,chicksan, Lo-Torque valve, cement hose, sensator. Perform F.I.T. with injection pump. Pressure up to 1457psi (13.5 EMW). Shut in pump and hold pressure for 14 minutes. Bleed off pressure and open up rams. Blow down and rig down test equipment. Run back down from 9546'to bottom at 9600'. Continue drilling ahead from 9600'to 9859'. Wait on survey. Continue drilling ahead from 9859'to 10179'. 04-17-2013: Continue drilling ahead from 10179"to 10744'. Circulate bottoms up and continue circulating until shakers are clean as per Baroid mud engineer. Perform flow check. Pump dry job. Pull out of hole from 10744'to 9546'on wiper trip. Service top drive. Monitor well. Run back in hole from 9546'to 10744'. (Note: on elevators both in and out of the well with no issues). Kelly up and break circulation. Record 1660 units of wiper gas. Continue drilling ahead from 10744'to 10997'. 04-18-2013: Continue drilling ahead from 10997'to 11594'. 15 CANRIG Hilcorp Alaska,LLC SRU 24-15 04-19-2013: Continue drilling ahead from 11594'to Total Depth at 11710'. Circulate bottoms up. Monitor well and observe it flowing at 4.3bph. Resume circulating and begin building mud weight. Build mud weight from 10.9ppg to 11.4ppg. Stop circulating and monitor well. Observe well flowing at 1.75bph. Continue circulating while waiting on instructions as per Hilcorp. Stop circulating. Pull,break and lay down single from 11710'to 11691'. Pull cleanly out of the hole from 11691'to 9547'(just inside shoe)racking back stands of 4" drill pipe in the derrick. Slip and cut the drill line(23 wraps, 115'). Recalibrate block height sensor. Service rig. Run back in hole from 9547'to 11691' (filling pipe every 1200'). Pick up and make up single out of pipe shed. Kelly up and break circulation. Run down and tag bottom at 11710'. Begin pumping around 20 bbl Hi- Vis sweep. Note that gas started increasing quickly over 100 units after only 1407 strokes pumped (2133' arrival depth),to a first peak of 193 units after 2856 strokes(4250'arrival depth),to 822 units maximum gas at 6829 strokes(10201'arrival depth)and a slightly early bottoms up peak of 568 units at 7603 strokes(11463' arrival depth).Circulate gas down and condition hole. Stop pumping at 13345 total strokes. Monitor well for 5 minutes. Observe slight flow. Pull out of hole from 11710'to 9547'(inside shoe). Work through tight spots at 11682', 11622', 11593'-11585', 11564'-11561', 11510', 11348'on way out. Kelly up and monitor well for one hour. Observe very slight flow(0.5 bbl gain). Pump dry job. Continue pulling out of hole from 9547'to 6722'. 04-20-2013: Continue pulling out of hole from 6722'to top of HWDP at 745'. Check for flow. Pull HWDP and jars out of hole from 745' to 139', racking back in derrick. Pull, break, lay down and off load directional assembly(crossover,2 NM compressive collars,NM filter sub,pulsar,MWD,2 NM pony compressive collars, NM string stabilizer, motor, 6 3/4' bit,). Inspect and grade bit. Clear and clean rig floor. Send out all short directional tools. Monitor all fluid gains at trip tank. Prep to run wireline logs. Hold pre-job meeting on procedures and safety during wireline operations. Rig up Halliburton Wireline Services to run E-logs. Install upper and lower sheaves. Pick up, make up as per Halliburton, and run in the hole quad-combo logging assembly(Run#1:hole finder,array compensated resistivity tool,short axis kit, regal standoff,wave sonic in- site,gamma telemetry tool,flex joint,density in-site pad,spectral density tool(SDLT)and dual-spaced neutron (DSNT)). Unable to get logging assembly past 9855'after two attempts,and simultaneously observe a total failure of neutron source tools. Pull out of hole and troubleshoot. Disconnect the cable head. (Perform simultaneous operations,including:cleaning the rock washer,changing out the suction rod on mud pump#1, and valve tune-up on mud pump motor#3). Change out the GTT,but discover that its replacement also fails to function properly. Determine that the power-sync for the entire logging assembly is not working properly, and thus the density-porosity tools will not function properly. Change out both nuclear sources, retest the density-porosity tools for a third time without success, and thus confirm the failure of the power step-up unit. Break and lay down the nuclear source tools. Connect the cable head and the GTT tool to the wave sonic tool and successfully function test. Minus neutron source tools, run back in the hole with a reconstructed, narrower, more robust assembly(Run#2). The logging assembly easily slid past 9855'and continued the rest of the way to 11709'. Begin logging out of hole from 11709',and continue to log out with no problems when the tool suddenly got struck at 11385'. All attempts at freeing the tool the next 8 hours, including pulling at 80%of the cable strength, have failed. Constant pull on tool(at 50%of cable strength)to be maintained until recovery(strip-over) tools arrive at location. 16 CANRIG Hilcorp Alaska,LLC SRU 24-15 04-21-2013: Continue wait for Halliburton wireline stripping kit to arrive on location. Halliburton maintained constant 50% tension on wireline until 05:20 Hrs, then reduced tension to slightly above tool string weight while continuing to wait on stripping kit. Perform various simultaneous operations around rig that include: general housekeeping, MP2 work orders, insulating steam lines, greasing and rebuilding choke manifold valves #10 and #11, changing out hanger bearing on pit auger. At 16:00 Hrs: Halliburton slacked off completely on the wireline tension, the upper sheave is re-rigged from the elevators to the derrick and re- secured with secondary support and then the lower sheave repositioned and re-rigged before the wireline is pulled back up and held again at its string weight tension. After the Halliburton wireline stripping kit to arrives on location, a pre-job meeting with all hands is held to discuss operations, procedures and safe practices of strip-over operations. The T-Bar Hanger is made up on the wireline,and the wireline is slacked-off all the way. Maintaining the secondary support on upper sheave at all times,the tugger line holding the upper sheave is changed out to the heavy wireline chain. Upload all wireline stripping tools to the rig floor. Pull wireline slack up to the floor. Measure and cut wireline at point designated by Halliburton. Install spear head and rope socket on end of down hole line. Install rope socket, sinker bar, and spear head overshot on end of cable hanging in derrick. Test rope sockets with tension for 5 minutes to ensure they are seated correctly. Screw grapple and subs on bottom of first stand of HWDP. 04-22-2013: Make up grapple and subs on bottom of first stand of HWDP and then torque up as per Baker representative. Run in hole with first stand. Break down wire line weight bars and add knuckle joint to each connection. Remove hose from top drive counter balance. Strip in hole over wire line with 4" HWDP from surface to 544'. Continue to strip in hole over wire line with 4"drill pipe from 544'to 1620'. Pull 6500 lbs on wire line and measure 21'of stretch. Set tee bar anchor on stump,cut 17'off the wire line and re-anchor the head. Load test to 7500 lbs for 5 minutes. Remove tee bar anchor. Continue to strip in hole over wire line with 4"drill pipe from 1620'to 1747'. Notice anchor on head is slipping. Install tee bar anchor. Redress head anchor with new slips. Load test to 7500 lbs for 10 minutes. Continue to strip in hole over wire line with 4"drill pipe from 1747'to 3384'. Stop and ensure weight bars are tight. Continue to strip in hole over wire line with 4" drill pipe from 3384'to 9543' (just inside 7 5/8"shoe). Begin circulating bottoms up. Note that gas started increasing quickly after only 476 strokes pumped (-707'),to a first small peak of 193 units after 2194 strokes (3257'), to 2352 units maximum gas at 4689 strokes (6961') to a slightly early bottoms up peak of 1814 units at 6029 strokes(-8951')and late peak of 1509 units at 7344 strokes(BU+916 strokes). Circulate and condition hole for 10112 total strokes. Stop pumping and monitor for 10 minutes. Observe slight flow. Begin circulating another bottoms up(and eventually circulate 26795 total strokes). 17 CANRIG Hilcorp Alaska,LLC SRU 24-15 04-23-2013: Continue circulating and weight up to 11.4ppg. (Circulate 26795 total strokes). Monitor well for 10 minutes. Well flowing at 1.2bph. Break out top drive and crossover sub. Remove hang-off sub C-plate, hang-off sub and crossover. Pull 9000 lbs on wire line. Install T-bar anchor on wire line. Reset head anchor. Load test anchor to 9000 lbs for 10 minutes. Remove T-bar anchor. Blow down top drive. Continue to strip in hole over wire line with 4" drill pipe from 9543'to 9858'. Note that drill pipe is out of balance. Make up crossover, hang-off sub,crossover to top drive. Set hang-off sub C-plate. Circulate surface to surface(9127 total strokes). Record 1195 units maximum gas. Pump 20 bbl 13.0ppg slug. Rig down hang-off sub and crossovers. Continue to strip in hole over wire line from 9858'to 11245'. Make up crossover, hang-off sub, crossover to top drive. Set hang-off sub C-plate. Circulate 10220 total strokes. Record 3316 units maximum gas. Rig down hang-off sub and crossovers. Continue to strip in hole over wire line with 3 joints of 4"drill pipe from 11245'to 11336'. Set down 10K string weight in attempt latch onto fish. Attempt failed. Pick up and break off single. Install C-plate and latch-up and make up to previous stand at 11305'. Work down one joint and continue attempts to latch onto fish. Attempts failed. Lay down single again. Install hang-off sub and crossovers. Pump and work same joint back down while attempting to latch onto fish. Attempt failed. Repeat laying down single again. Install hang-off sub and crossovers. Make up same joint again,the pump and work back down attempting to latch onto fish. Attempt failed. Repeat laying down single again. Install hang-off sub and crossovers. Pump and work joint back down. This time slack off 20K in another failed attempt at latching onto fish. Repeat laying down single again. Install hang-off sub and crossovers. Make up same joint again, the pump and work back down attempting to latch onto fish. Install hang-off sub and crossovers. Pump and work joint back down. Slack off 25K. Pulled 60K over to break free. Rig down crossovers and hang-off sub. Pick up to single and connected wireline. Pull up and observe wire line weight decrease. Verify fish attached. Pick up stand all the way up and disconnect. Install C-plate and hang off T-bar. Hang wire line and disconnect latching tool. Pull the wire line out of the stand of pipe and lower it to rig floor. Lay down the wireline weight bars. Tie off and cut the rig side of wire line cable,and then splice to the length inside the drill pipe. Halliburton verifies the continuities and effectiveness of newly spliced cable. Pick up 6500 lbs.on the wire line to induce some tension on the line before it is burned at the top of the logging tools. Halliburton goes through set-up procedures and successfully burns apart the cable. There was a sudden drop of metered voltage at the same as a 4K drop in string weight to indicate a successful tool burn. Work wire line with elevators to ensure that it is free. Pull enough slack to reach the Halliburton logging unit. Tie the ends of the cable together on the ground. Slowly reel the cable to the onto the drum spool and align. Reel back a small amount of cable to initiate proper spacing on the drum. Begin and continue reeling the wire line out of the hole and onto the drum spool. 04-24-2013: Continue and finish reeling the recovered wire line all the way out of the hole and onto the drum spool. Rig down and off load the upper and lower wire line sheaves and all remaining Halliburton wire line and strip over equipment. Clear rig floor. Circulate bottoms up(and 8148 total strokes)from 11300'and record 799 units maximum gas. Pull out of hole from 11300'to 10602', laying down first 2 joints of 4"drill pipe and then racking back 10 stands. Pump 27 bbl, 12.6ppg slug. Continue pulling out of hole racking back stands of 4"drill pipe from 10602'to just inside shoe at 9476'. Monitor well at shoe. Well flowing at 1.1 bph. Pull out of hole from 9476'to surface. Inspect wire line tool in overshot. Break bottom hole assembly connections and rack back last stand of HW DP. Lay down and off load Halliburton wire line tools. Clear and clean rig floor. Off load unneeded subs and crossovers. For clean out run:pick up,make up and run in hole lower 12'section of bottom hole assembly(mill tooth bit, bit sub, NM string stabilizer,crossover). Make up lower bottom hole assembly to first stand of 4" HWDP in derrick. Continue running in hole with HWDP and jars to 617'. Continue running in hole with 4" drill pipe (filling hole every 2000') from 617' to 9545' (just inside shoe). Circulate bottoms up (and 9409 total strokes). Record 961 units maximum gas. Continue running in hole from 9545'to 11180'. 18 CANRIG Hilcorp Alaska,LLC SRU 24-15 04-25-2013:Continue running in hole from 11180'to 11313'. Kelly up and break circulation. Wash and ream from 11313'to 11438'. Hole tight from 11,320'to 11,358'. Continue to wash down from 11,438'to 11,690'. Pick up and make up one joint of 4"drill pipe from pipe shed. Wash down from 11690'to bottom at 11,710'. Record 1085 units maximum gas (from 11313') at 7463 total strokes. Circulate hole clean (at 380gpm, 3000psi, 80rpm, 4.8K torque). Record 120 units of trip gas (from 11710') at 32158 total strokes. Pump around Hi-Vis sweep and continue to clean and condition hole. Circulate 45624 total strokes from start of washing down to end of hole conditioning. Drop 2.26"drift on 80'wire. Blow down top drive. Pull the last joint of 4"drill pipe out from 11710'to 11690', break and lay down in pipe shed. Continue pulling out of hole on 8 stand wiper trip from 11,690'to 11,187'. Clean rig floor. Run back in hole from 11,187'to 11,690'. Pick up one(1)joint of 4"drill pipe out of pipe shed,make up and run in hole to bottom at 11,710'. Make up top drive and break circulation. Circulate bottoms up (7760 total strokes at 314gpm, 2210psi, 80rpm, 4.8k torque). Record 440 units of wiper gas. Pull the last joint of 4"drill pipe out from 11710'to 11690',break and lay down in pipe shed. Continue pulling out of hole racking back in derrick from 11,690'to 9,548'. (Observe net 2.3 bbl gain). Monitor well. (Note 1.1 bph flow). Pump 20bbl 12.6ppg dry job. Continue pulling out of hole racking back in derrick from 9,548'to 6089'. (Observe net 2.6 bbl gain). Continue pulling out of hole racking back in derrick from 6089'to 2757'. Pull out of hole, breaking and laying down in pipe shed 68 single joints of 4"drill pipe from 2757'to top of HWDP at 617'. Monitor well. Pull out of hole racking back 4" HWDP and jars in derrick. Break and lay down clean out tools(crossover,NM string stabilizer,bit sub,mill tooth bit). Clear and clean rig floor. Off load unneeded tools. Prep for running 5"liner. Lay down short 4"elevators and bails. Lay down drill pipe make-up tongs. Upload (via beaver slide)false rotary table,dog collar,elevators and slips to rig floor. Rig up Weatherford casing-running equipment. Rig up casing tongs. Rig up fill line to pits. Hold pre-job safety and operations meeting on HILCORP-directed procedures for running 5" DWC 15ppf Production Liner. Pick up, make up (with BakerLoc on threads of first four(4) shoe track joints) and run in hole 5"Liner shoe assembly to 159'. Install stop ring and bow spring centralizers on#1,#2,#3 and#4 joints. Fill float joint and verify proper operation of float equipment. Continue running in hole with 5"Production Liner from 159'to 2250'. On way in,torque each joint to 8000 ft/Ibs,install 1 bow-spring centralizer on first 26 joints, fill each joint on the fly. 19 CANRIG Hilcorp Alaska,LLC SRU 24-15 4/26/2013: Continue running in hole with 5"production liner from 2250'to 2328'.Change out elevators to 4". Make up Baker ZXP liner top hanger-packer assembly(crossover,flex-lock liner hanger,crossover,RS Pack off,seal nipple joint, HRD ZXP packer, PBR, running tool). Fill liner tieback sleeve with"Pal mix"(making sure that the mixture is thin enough to travel past the HRD tool and down to the pack off). Rig down Weatherford tongs and all other casing-running equipment while waiting 30 min for PAL mixture to set up.. Kelly up top drive. Pick up and make up one (1) stand of 4" HWDP to 4" HT-38 x 3.5"IF crossover on top of running tool and hanger-packer assembly, and run in hole to 2496'. Circulate one liner volume (1538 strokes). Rig up spinners. Clean and clean rig floor. Continue running in hole with 5"production liner string on 4"HW DP from 2496'to 2915'. Kelly up top drive, break circulation and fill pipe. Continue running in hole with 5"production liner string on 4"drill pipe from 2915'to 9516',stopping six more times(every 15 stands)on way in to kelly up top drive,break circulation and fill pipe(to 3892 total strokes).At 9516', make up top drive,break circulation, stage up to 294gpm/1240psi and circulate drill pipe and liner volume (9083 strokes). Record 1685 units maximum gas.Circulate gas down and break top drive. Pick up and make up crossovers and a 10'pup to top of cementing head and then lay back down in pipe shed. Make up wash tee and hose to cuttings tank. Pick up, make up,and torque together a 15'pup and 5'pup and then also lay back down and stage on skate.Continue running in hole with 5"production liner string on 4"HWDP from 9516'to 11657'. Pick up and make up single joint of drill pipe out of pipe shed and continue in hole to 11688'. Pick up and make pre-assembled 15'and 5' pups out of pipe shed and continue in hole to 11708'. Pick up cement head with 10' pup on top out of pipe shed, and install 1502 fittings,flag sub and cement line. Make up cement head to both top drive and pup on top of liner string. Break circulation. Rotate at 15rpm with 5-6K torque while staging pumps up from 123gpm to 216gpm. Circulate and condition for cement job. Record 1830 units maximum (trip) gas at 6542 strokes pumped. Pump 35212 total strokes before beginning cement job. Hold pre-job meeting with all hands on procedures as per Hilcorp for cementing 5"production liner. Schlumberger pumps ahead 5 bbls of water to purge lines and pressure tests cement lines to 4500psi for 5 minutes. Rig pumps 10 bbls of 12.0ppg Mud Push II spacer and then chases with 5 bbls of 11.40ppg mud. Line up and switch over to Schlumberger pumping unit. Pump 101 bbls of 15.3ppg EasyBlok cement(with 1.0ppb CemNet).Shut in drill pipe and open Wash Tee to cuttings tank. Pump water to flush cement from lines. Shut Wash Tee and open valve to drill pipe.Baker rep drops drill pipe wiper dart.Schlumberger displaces cement with 139.5 bbls of 11.40ppg mud. Slow pump rate after 130 bbls away and stop completely at 138.5 bbls without bump. Pump one(1)additional bbl and plug bumps at 139.5 bbls. Pressure up to 3000psi and hold. Check floats, and floats are good. Pressure up to 4200psi and slack off 80K and set hanger. (Shoe is set at 11698.77'). Pick up, slack off 80K again and shear lock pins and unlatch from liner. Pick up 4'to verify setting tool is released. Rotate at 20rpm. Slack off to 80K and set ZXP packer. Cement in place at 23:12 hrs. Lose 120 total bbls displacing cement. Blow down cement lines. Rig down cementing head. 4/27/2013: Pull out of hole, racking back drill pipe in derrick;lay down HWDP;rig up and run 2-7/8"liner with polish assembly. CANRIG released from obligations at 1600 hrs. 20 CANRIG H Hilcorp Alaska,LLC SRU 24-15 3 GEOLOGICAL DATA 3.1 Lithostratigraphy Prognosed and Observed tops were provided by Hilcorp geologist Kevin Eastham. PROGNOSED OBSERVED FORMATION MD TVD SSTVD MD TVD SSTVD (ft) (ft) (ft) (ft) (ft) (ft) Sterling B-6 3,478 3,476 -3,166 3,477 -3165 LBGT 50-6 5,060 5,058 -4,748 Tyonek Coal D1CT 6,062 6,060 -5,750 6,066 -5754 Gas Storage Sand 7,121 7,119 -6,809 Tyonek 77-3 8,040 8,036 -7,726 8,041 -7729 TYNK HP H2O 9,824 9,710 -9,400 9,782 -9470 Tyonek G2 10,930 10,742 -10,432 10,920 -10,608 HKT 10,980 10,790 -10,480 10,981 -10,669 Hemlock H3-5 11,046 10,850 -10,540 11,036 -10,724 Hemlock H7-8 11,148 10,946 -10,636 11,134 -10,822 Hemlock 10 11,326 11,112 -10,802 11,309 -10,997 TD 11,700 11,461 -11,151 11,710 11,495 -11,185 21 CANRIG Hilcorp Alaska,LLC SRU 24-15 3.2 Litholoaic Details Tuffaceous Claystone,Tuffaceous Siltstone(3030'-3120')=light gray with light brownish gray and rare light greenish gray secondary hues; very soft and sticky to moderately firm to very firm; irregular and shapeless cuttings to subblocky; silty to clayey texture;dull to earthy luster;poor to fair adhesiveness fair to good cohesiveness; noncalcareous trace dark brown to black microthin carbonaceous inclusions and laminations. Sand,Tuffaceous Sandstone(3120'-3180')=light gray with light pinkish gray secondary hues overall with individual liths dominantly clear to translucent quartz and volcanic glass with abundant multicolored liths,rust, pale rose, black, light to medium green to greenish gray;very fine upper to very coarse upper, dominantly, medium lower to coarse lower poorly sorted; poor to moderately consolidated with light pinkish to yellowish gray ashy tuff as a supporting matrix;very fragile; noncalcareous. Tuffaceous Claystone,Tuffaceous Siltstone,Tuffaceous Sandstone(3180'-3240')=sandstone is light yellowish gray overall with ashy tuff supporting matrix; fragile to slightly firm; abundant multicolored liths throughout;claystone and siltstone is light to very light gray with light brownish gray secondary hues;irregular shaped cuttings; massive; dull to slightly waxy luster;silty to clayey to slightly gritty texture; noncalcareous . Tuffaceous Claystone, Tuffaceous Siltstone, Tuffaceous Sandstone (3240' - 3320') = clay dominant; grayish brown to medium gray to pale brown; obvious thin bedding; many cuttings pieces with stacks of microbeds; soft to very slight brittle; clayey to silty to ashy to variegated matte textures; earthy luster note distinctive silty tuffaceous sandstone after 3305';pale brown very fine to fine;well sorted;common micro-mica; silty lithic arenite. Sand, Tuffaceous Sandstone (3320' - 3390') = medium to medium light gray overall with abundant multicolored liths, dominantly clear to translucent quartz and volcanic glass, light to medium gray, light to medium green to greenish gray,rust and pale rose;very fine upper to very coarse upper,dominantly medium lower to upper;poorly sorted;unconsolidated to very loosely matrix supported;very light gray to light yellowish gray and pinkish gray ash,tuff;fragile; pulverulent; noncalcareous Tuffaceous Claystone, Tuffaceous Siltstone (3390' - 3470') = light gray to very light gray with very light brown secondary hues; very soft and fragile; irregular shaped cuttings; silty to clayey to gritty texture from abundant sand; dull to earthy luster; hydrophilic moderate to very soluble; poor adhesiveness; poor to fair cohesiveness; noncalcareous; trace scattered thin coal beds; black to brownish black; very firm to brittle; planar fracture dominant;massive to platy and flaky;greasy to resinous luster;smooth to slightly gritty texture; no visible out gassing. Sand,Tuffaceous Sandstone(3470'-3550') = medium to medium light gray with abundant multicolored liths,dominantly clear to translucent quartz and volcanic glass medium to dark gray,light to medium green to greenish gray, trace rust, pale rose and light yellowish gray;very fine upper to very coarse upper with trace pebble fragments (5mm), dominantly medium lower to coarse lower; angular to subangular with trace subrounded;poorly sorted;poorly consolidated with very fragile ashy matrix;hydrophilic;very light gray to light yellowish gray; noncalcareous. Tuffaceous Claystone, Tuffaceous Siltstone (3550' - 3610') =very light gray to light gray with very light brown to yellowish gray secondary hues; very soft and sticky; irregular, shapeless cutting silty to clayey texture; dull to earthy luster; very soluble and expansive; hydrophilic; poor cohesiveness; poor to fair adhesiveness; siltstone commonly grades between very fine, silty sandstone and sandy siltstone; noncalcareous. 22 CANRIG Hilcorp Alaska,LLC SRU 24-15 Tuffaceous Claystone, Tuffaceous Siltstone(3610' -3710') = light gray to very light gray with very light brown to light brownish gray secondary hues and medium light gray with light bluish gray secondary hues;very soft to slightly firm;irregular to wedge like cuttings with abundant PDC bit action"scooped"appearance;silty to clayey texture;dull,earthy to slightly waxy luster;moderate to very soluble and expansive;hydrophilic;fair to good cohesiveness and adhesiveness;trace dark brown to black microthin carbonaceous laminations and inclusions in firmer pieces; noncalcareous. Sand, Tuffaceous Sandstone (3710'- 3770') = light to very light gray with light yellowish gray secondary hues overall with individual grains dominantly clear to translucent quartz and volcanic glass with abundant multicolored liths of medium gray to dark gray to black,light to medium greenish gray,rust and pale rose;very fine upper to very coarse upper,dominantly medium;angular to subangular;poorly sorted;poorly consolidated with very fragile ashy matrix;very light gray; pulverulent; noncalcareous. Tuffaceous Claystone,Tuffaceous Siltstone(3770'-3830')=light to very light gray with light yellowish gray secondary hues;soft and fragile to occasionally firm;irregular to platy to PDC bit action shaped cuttings;silty to clayey texture;dull,earthy to slightly waxy luster;hydrophilic;moderately soluble and expansive;fair to good cohesiveness and adhesiveness;noncalcareous;siltstone commonly grades between sandy siltstone and silty sandstone. Sand,Tuffaceous Sandstone(3830' -3900') = medium to medium light gray with abundant multicolored liths,dominantly clear to translucent quartz and volcanic glass medium to dark gray,light to medium green to greenish gray,trace rust, pale rose and light yellowish green;very fine upper to very coarse upper with trace pebble fragments, dominantly medium lower to coarse lower; angular to subangular; poorly sorted; poorly consolidated with very ashy tuff matrix;fragile. Tuffaceous Claystone,Tuffaceous Siltstone(3900'-3960')=medium to medium light gray with light brown to light brownish gray secondary hues; very soft and sticky; shapeless, amorphous cutting silty to clayey texture;dull to earthy luster;massive in part;very soluble and expansive;hydrophilic;poor cohesiveness;fair to good adhesiveness;noncalcareous;siltstone commonly grades between sandy siltstone,silty sandstone. Tuffaceous Claystone,Tuffaceous Siltstone(3960'-4020') = medium light to light gray with light bluish gray secondary hues; very soft and very sticky; irregular, massive cuttings with scattered PDC bit action shaped cuttings; silty to clayey texture; dull to waxy luster; hydrophilic; moderate to very soluble and expansive;poor to fair cohesiveness;fair to good adhesiveness;noncalcareous;trace light yellowish ashy tuff; calcareous;fragile;waxy. Tuffaceous Claystone,Tuffaceous Siltstone(4020'-4080') = medium light to light gray with light bluish gray and light yellowish gray secondary hues;very soft and very sticky;massive;irregular amorphous cuttings with trace PDC bit action shaped cuttings;silty to clayey texture;dull to slightly waxy,greasy luster;hydrophilic; very soluble and expansive; poor cohesiveness;fair to good adhesiveness; noncalcareous. Tuffaceous Claystone,Tuffaceous Siltstone(4080'-4140')=medium to medium light gray with light brown to light yellowish gray secondary hues; very soft and sticky; shapeless, amorphous cutting silty to clayey texture;dull to earthy luster;massive in part;very soluble and expansive;hydrophilic;poor cohesiveness;fair to good adhesiveness; noncalcareous;siltstone commonly grades between sandy siltstone,silty sandstone; trace multicolored pebbles. Sand, Conglomeratic Sand (4140' -4210') = medium gray to greenish gray overall with individual grains dominantly clear to translucent quartz and volcanic glass medium to dark gray to greenish gray, black and dark brown;fine lower to very coarse upper with pebble and pebble fragments,dominantly medium upper to coarse lower; angular to subrounded pebbles, dominantly subangular; poorly sorted; dominantly unconsolidated; noncalcareous. 23 CANRIG Hilcorp Alaska,LLC SRU 24-15 Tuffaceous Claystone,Tuffaceous Siltstone(4210'-4270')=medium to medium light gray with light bluish gray and light yellowish gray secondary hues;very soft and very sticky;massive;irregular amorphous cuttings with trace PDC bit action shaped cuttings;silty to clayey texture;dull to slightly waxy,greasy luster;hydrophilic; very soluble and expansive;poor cohesiveness;fair to good adhesiveness;noncalcareous;trace pebbles and very coarse liths. Tuffaceous Claystone,Tuffaceous Siltstone,Tuffaceous Sandstone=(4270'-4350)'=complex volcanic ash derived rocks;constituent lithologies all closely gradational to each other;clay is the dominant component, but nearly all has significant silt content, floating sand grains, swabs of less disturbed ash and discernible macro-shards and micro-shards;three major color groups; locally dominant dark greenish gray to greenish gray,lesser fractions of medium dark gray to medium light gray and brownish gray to light brownish gray;soft to slightly firm;clayey to silty to ashy to various soft matte and abundant complex combined textures;earthy to soft glassy luster;ashy-clayey pieces with abundant floating sand grains grading to very ashy sandstone are nearly pervasive;spotty throughout are brownish black to brown pieces of carbonaceous claystone with coal micro-fragments. Conglomerate,Conglomeratic Sand,Sand(4350'-4600')=prominent lithology change;very diverse group of mostly greenstone lithic clasts; very abundant hard, variegated green-colored lithic fragments of ortho- sandstone, meta-sandstone, meta-conglomerate and various micro-conglomerates;appears all are broken down by bit impact;some very large clasts with well rounded outer edges;overall appearance is apparent high energy channel fill environment; matrix of the larger conglomerate is diverse varicolored clays, especially greenish gray and bluish gray colors, and disaggregated sand ranging from very fine lower to very coarse upper; overall color is dark greenish gray to medium gray with very strong medium bluish gray secondary hues;very poorly sorted overall;grain size range from very fine lower to pebble and probably cobble;largest fragments up to 15mm appear to be from even larger clasts;sand fraction:v angular to subangular,discoidal; irregular to elongated grain dimensions;trace sandstone fragments are calcite(and,or silica)cemented;note clays surrounding large individual clasts look like pale green alteration product and often contain abundant discernible glass shards,particles;sand and conglomerate is compositional graywacke with 50-90%diverse lithics dominated by hard silicate greenstones; other lithics include polycrystalline quartz, non-differentiated crypto-crystalline and microcrystalline silica(chert, chalcedony, spotty igneous intrusive and meta-intrusive rocks, hard silica cemented sandstones; epidote is common mineral within the greenstones; many of the bluish and greenish colored claystones may be large soft claystone clasts within the conglomerate. Tuffaceous Claystone, Tuffaceous Siltstone, Tuffaceous Sandstone, Volcanic Ash (4600'-4770') = complex volcanic ash derived rocks;clay is very dominant,but all many gradations to tuffaceous siltstone and tuffaceous sandstone;abundant pieces with easily discernible floating sand grains, swabs of less disturbed ash and discernible macro-shards and micro-shards;three major color groups;slightly dominant dark greenish gray to greenish gray,abundant fractions of medium dark gray to medium light gray and brownish gray to light brownish gray; soft to slightly firm; clayey to silty to ashy to various soft matte to pervasive complex combination textures;earthy to soft glassy luster;locally micro-gritty texture when glass shards are prominent; ashy clays with abundant floating sand grains grade to very ashy-clayey sandstone;note spotty brownish black to brown pieces of carbonaceous claystone with coal micro-fragments;note abundant pieces of claystone with thin diffuse zoning or laminations. Sand,Conglomeratic Sand(4770'-4860')=medium to medium dark gray with greenish gray secondary hue overall with individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, medium to dark greenish gray, trace black and dusky red; fine lower to very coarse upper with pebble fragments (12mm), dominantly medium upper to coarse upper; angular to subangular; poorly sorted; dominantly unconsolidated with common ashy supporting matrix;trace very light gray to light bluish gray tuff; very fragile;pulverulent;trace to common visible glass shards. 24 CANRIG H Hilcorp Alaska,LLC SRU 24-15 Tuffaceous Claystone, Tuffaceous Siltstone (4860' - 4940') = medium to medium light gray with light greenish gray and light brownish gray secondary hues;very soft to rarely firm;irregular, amorphous shaped cuttings;silty to clayey to slightly gritty texture from high sand content;dull to slightly waxy luster; moderately soluble and expansive; hydrophilic;poor cohesiveness;fair to good adhesiveness; noncalcareous;siltstone commonly grades between silty sandstone and sandy siltstone; trace dark brown to black carbonaceous material, coal present in thin beds; trace dark brown to black microthin carbonaceous laminations and inclusions in firmer pieces. Tuffaceous Claystone,Tuffaceous Siltstone(4940'-5020')=light greenish gray to medium light gray to light gray with light brownish gray and yellowish gray secondary hues;very soft to trace slightly firm;sticky; irregular, massive cuttings with common PDC bit action shaped pieces; silty to clayey texture; dull, earthy luster;moderately soluble and expansive;poor to fair cohesiveness fair to good adhesiveness;noncalcareous trace to common thin coal beds;trace microthin carbonaceous laminations and inclusions;siltstone grades between sandy siltstone and silty sandstone;very soft;fragile. Sand, Conglomeratic Sand (5020'-5090') = medium gray with a moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, medium to dark greenish gray and trace white and rust liths; fine lower very coarse upper with scattered pebble and pebble fragments, dominantly medium lower to upper; angular to subangular; poorly sorted; unconsolidated with common light gray ashy supporting matrix. Tuffaceous Claystone, Tuffaceous Siltstone(5090' - 5160') = light gray to light brownish gray with light greenish gray secondary hues; very soft;very sticky; shapeless, massive cuttings; silty to clayey to slightly gritty texture; dull, earthy luster; hydrophilic; very soluble and expansive; poor cohesiveness; good adhesiveness; siltstone grades between silty sandstone and sandy siltstone and very fine tuffaceous sandstone; soft; noncalcareous. Tuffaceous Claystone,Tuffaceous Siltstone(5160'-5240')=light brownish gray with light yellowish gray and pinkish gray secondary hues;very soft;mushy to pasty;shapeless cuttings;massive;earthy to dull luster; silty to clayey to slightly gritty texture;hydrophilic;moderately soluble and expansive;poor to fair adhesiveness and cohesiveness; noncalcareous; trace thin coal beds; trace to common dark brown to black microthin carbonaceous laminations and inclusions in firmer pieces; siltstone occasionally grades between silty sandstone and sandy siltstone and very fine tuffaceous sandstone. Coal, Carbonaceous Material (5200'-5280') = black to brownish black and dark brown; irregular to flaky cuttings; planar fracture dominant; earthy luster; smooth to gritty texture; poorly developed; no outgassing visible. Sand (5280' - 5350') = present in minor amounts in dominantly claystone, siltstone formation; medium to medium light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray to black, greenish gray and yellowish brown; fine lower to coarse upper, dominantly medium; poor to fair sorting; unconsolidated;angular to subangular. Coal,Carbonaceous Material(5350'-5400')=black with brownish black and grayish black secondary hues; very firm to hard and brittle; blocky to platy; planar fracture dominant with trace conchoidal and birds eye; earthy to resinous luster; smooth to slightly silty and gritty texture; sub bituminous; very weak trace visible outgassing bubbles; coal grades to less developed carbonaceous material. Tuffaceous Claystone, Tuffaceous Siltstone (5400' - 5470') = medium light to light gray; very soft; very sticky;shapeless,globular,amorphous cuttings;mushy to slimy;dull luster;silty to clayey texture;hydrophilic; very soluble and expansive; poor cohesiveness;fair to good adhesiveness; noncalcareous;trace very fine sand suspended in clay. 25 CANRIG Hilcorp Alaeka,LLC SRU 24-15 Sand,Conglomeratic Sand(5470'-5520')=medium gray with a strong salt and pepper appearance overall with individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray to greenish gray and black;fine lower to very coarse upper,dominantly medium lower to coarse lower;angular to subangular; poor to fair sorting unconsolidated; noncalcareous; scattered thin coals throughout; black with dark brown secondary hues; firm to hard and brittle; blocky to platy; planar fracture dominant; earthy to resinous luster; smooth to slightly gritty texture; very weak visible outgassing bubbles; sub bituminous and grading to carbonaceous material. Volcanic Ash,Very Tuffaceous Claystone(5520'-5640')=prominently interbedded,some localized zones of 100%ash;light gray to very light gray with faint yellowish gray and very faint grayish orange pink secondary hues;commonly scored and mottled with white streaks of ash;in part micro-interbedded with grayish brown tuffaceous claystone; mostly soft vitric variation, but also very common slightly brittle devitrified ash;ashy to clayey to various dense matte to partially smooth textures;commonly powdery, pulverulent after hydration; earthy to subwaxy to waxy to slightly greasy textures;often displays remnant of original airfall vitric texture with undifferentiated micro-mafic minerals evenly dispersed with larger glass shards. Coal, Carbonaceous Shale,Carbonaceous Material(5300'-6100')= no major change in characteristics over this interval;coals:black to brownish black;brittle and fragile to brittle and tough;dominantly irregular to hackly,slightly platy cuttings habit;minor fraction has slightly improved platy habit;most coal fragments part in disordered sub-parallel fashion; local harder blockier coals have sub-conchoidal to birdseye to clean platy fracture;smooth to very dense matte texture;dull to"shiny"to sub-vitreous to trace resinous luster;also lower grade coals grading to carbonaceous shale have dense earthy luster; appears dominantly lower to middle grade lignite with spotty thin higher grade zones to sub-bituminous; no cleating;rare amber;trace coals with observable degassing; carbonaceous shale, various carbonaceous material and very carbonaceous tuffaceous claystone often form the bulk of coal-rich zones;many cuttings pieces of carbonaceous mudstone with micro-coal fragments and very thin discontinuous coal laminations and particles; note spotty to locally abundant soft to slightly firm very carbonaceous dusky brown to grayish brown to brownish black siltstone in zones of high gas instead of coals. Tuffaceous Sandstone,Sand(5800'-5870')=note that entire interval could also correctly be identified as a very sandy"ash-stone";supporting volcanic ash matrix appears greater volume than sand grains;cuttings are ashy-clayey small lumps of volcanic ash with common to very abundant floating sand grains; light gray and intensely mottled with very light gray and white blebs, streaks and patches; sand grains are multi-forms of quartz, greenstones, dark yellowish orange calc tuff micro lithic fragments and undifferentiated black lithics and mafic minerals;some tuff sandstone and the disaggregated sand fraction has a very faint light olive gray secondary hue;range from very fine lower to medium lower;all of the very fine may be glass shards from the ash; dominant well sorted at fine upper; equant grains, subangular to rounded, subdiscoidal to spherical; pervasively ashy sublithic arenite; homogeneous overall appearance. Tuffaceous Claystone, Tuffaceous Siltstone, Tuffaceous Sandstone, Volcanic Ash (5470' - 6280') = complex volcanic ash derived rocks;tuffaceous claystone is very dominant, but abundant subtle transitions and gradations to tuffaceous siltstone,tuffaceous sandstone and ash;abundant clay-silt-ash with floating sand grains,patches of airfall vitric ash and well distributed macro-shards and micro-shards;several color groups: dominant medium dark gray to medium light gray with many subtle brownish gray and olive gray secondary hues,abundant brownish gray to light brownish gray,abundant(carbonaceous)brownish black to dusky brown to grayish brown to pale brown, spotty dark greenish gray to greenish gray, locally abundant light gray to mottled very light gray with yellowish gray secondary hues;soft to slightly firm to trace very firm;clayey to silty to ashy to various soft matte to many complex combination textures; spotty micro-gritty texture when glass shards are abundant; earthy to soft glassy luster; subwaxy to waxy luster if volcanic ash is devitrified; ashy claystone with abundant floating sand grains very closely grades to very ashy sandstone; note abundant carbonaceous tuffaceous claystone/siltstone when adjacent to coals and abundant claystone with coal micro- fragments; significant percentage of claystone-siltstone with thin diffuse zoning/layering-bedding. 26 CANRIG Hilcorp Alaska,LLC SRU 24-15 Tuffaceous Sandstone,Sand(5950'-6310')=distinctive soft very ashy sandstone transitional to very sandy "ash-stone";note that supporting volcanic ash matrix is often a greater volume than sand content;cuttings are small ashy-clayey lumps of volcanic ash with common to very abundant floating sand grains; light gray and mostly mottled very light gray and white streaks, blebs and patches; sand grains are multi-forms of quartz, greenstones,dark yellowish orange calc tuff micro-lithic fragments and undifferentiated black lithics and mafic minerals; some tuff sandstone has very faint light olive gray secondary hue; range from very fine lower to medium lower; nearly all very fine are glass shards winnowed from the ash;well sorted in fine range;equant grains, subangular to rounded, subdiscoidal to spherical;very ashy sublithic arenite; homogeneous overall appearance. Conglomeratic Sand,Conglomerate(6310'-6355')=medium light gray to light gray with faint to moderate light olive gray to yellowish gray secondary hues;also intensely mottled with white and dark patches;coarse lower sand to pebble;very poorly sorted to possible bimodal;matrix supported by volcanic ash;diverse clasts dominated by monocrystalline and polycrystalline quartz,other cryptocrystalline and non-differentiated silica, greenstone lithics; many other hard-rock lithics and apparent soft rock sedimentary lithics;common clastic coal fragment;distinctive lithic clasts of orangish red jasper,greenish yellow epidote,dark yellowish orange calcareous tuff. Tuffaceous Sandstone,Sand(6310'-6700')=distinctive soft very ashy sandstone;commonly also silty in part; very closely gradational to very sandy "ash-stone" and to tuffaceous siltstone; note that supporting volcanic ash matrix is often a greater volume than sand content; cuttings are small ashy/clayey lumps of volcanic ash with common to very abundant floating sand grains; note that many very fine grains are glass shards from the original vitric airfall deposition that are both an integral part of the matrix and clastic constituent when winnowed out by fluid deposition; some of the silica-rich "coarse" silt consists of concentrations of microshards;light gray with very faint yellowish gray secondary hues,and intensely mottled with very light gray and white streaks,specks and sand grains are monocrystalline and polycrystalline quartz, plus various forms of cryptocrystalline silica, spotty feldspar, diverse lithics and non-differentiated mafic minerals;lithics are dominated by variegated light green colored greenstones and dark gray to black argillite/ phyllite rock fragments; note occasional very faint light olive gray secondary hue is derived from the greenstones; other lithics are diverse, with many hard meta-silicate rocks; note also apparent significant fraction of sedimentary lithic grains,clasts;common clastic coal fragments;distinctive well distributed traces of orangish red jasper, greenish yellow epidote and dark yellowish orange calcareous tuff micro-fragments; dominantly black submetallic mafic minerals,with biotite and other micas evident;disaggregated sand grains range from very fine lower to medium lower;most very fine are winnowed glass shards;moderately well sorted in fine lower to medium lower range, and often well sorted in fine range; equant grains, angular to rounded, discoidal to spherical;some pieces have both very angular and well rounded grains;very ashy sublithic arenite to lithic arenite; most bulk samples have a homogeneous overall appearance. Tuffaceous Claystone, Tuffaceous Siltstone, Tuffaceous Sandstone, Volcanic Ash (6700'- 6790') = complex volcanic ash derived rocks; tuffaceous claystone is very dominant, many subtle gradations to tuffaceous siltstone, tuffaceous sandstone and "cleaner" volcanic ash; abundant clay-silt-ash with floating sand grains; pervasive well distributed macro-shards and micro-shards; dominant medium dark gray to medium light gray with strong brownish gray and faint olive gray secondary hues,abundant brownish gray to light brownish gray, very abundant brownish black to dusky brown to grayish brown to pale brown; locally pervasive carbonaceous mud rocks; soft to slightly brittle; clayey to silty to ashy to various soft matte to organic textures; earthy to soft glassy luster. Sand, Tuffaceous Sandstone (6790' - 6860') = medium light gray to light gray with light greenish gray secondary hue, individual grains dominantly clear to translucent quartz and volcanic glass,trace medium to dark gray to black; very fine lower to fine upper, dominantly fine lower; angular to subangular; fair to good sorting; loosely consolidated in ashy matrix; soft to fragile; non to slightly calcareous. 27 CANRIG Hilcorp Alaska,LLC SRU 24-15 Tuffaceous Claystone, Tuffaceous Siltstone (6860' - 6920') = light brownish gray to brownish gray to medium light gray with very light brownish gray secondary hues; soft, fragile and pulverulent; irregular with trace PDC bit action shaped cuttings; silty to clayey texture earthy to dull luster; moderately soluble and expansive; hydrophilic; poor to fair cohesiveness; poor adhesiveness; noncalcareous; trace dark brown to black micro laminations and inclusions. Tuffaceous Claystone,Tuffaceous Siltstone,Tuffaceous Sandstone(6920'-6990')=light gray with light yellowish gray and light olive gray secondary hues; soft to slightly firm; pulverulent; occasionally sticky; massive,irregular to PDC bit action shaped cuttings;silty to clayey to slightly gritty texture;dull,earthy luster; moderately soluble and expansive hydrophilic; poor to fair cohesiveness and adhesiveness; siltstone commonly grades between silty sandstone, sandy siltstone and very fine tuffaceous sandstone; noncalcareous. Tuffaceous Claystone,Tuffaceous Siltstone(6990'-7040')=brownish gray to light brownish gray;soft and fragile to slightly firm;silty to clayey texture;dull to earthy luster; hydrophilic;poor adhesiveness;poor to fair cohesiveness; massive to irregular with PDC bit action shaped cuttings;noncalcareous;trace dark brown to black micro laminations and inclusions. Coal,Carbonaceous Material(7040'-7090')=brownish black to black with brownish gray secondary hues; firm to crumbly and brittle;flaky to platy;earthy luster;gritty to smooth luster;lignitic to sub bituminous;poorly developed;very weak trace outgassing bubbles observed. Sand,Tuffaceous Sandstone(7090'-7170')=very light gray to bluish white with very light greenish gray secondary hues overall with individual grains dominantly clear to translucent quartz with trace amounts of light to medium gray, black and light to medium green to greenish gray; very fine lower to medium lower, dominantly fine lower;angular to subangular;fair to good sorting;easily disaggregated with very fragile ashy sandstone;pulverulent;very light gray with very light brown,pink,and green to greenish gray secondary hues; trace visible shards; noncalcareous. Tuffaceous Claystone, Tuffaceous Siltstone (7170' - 7240)= medium light gray to light gray with light yellowish gray and light olive gray secondary hues; soft to slightly firm; pulverulent; occasionally sticky; massive,irregular to PDC bit action shaped cuttings;silty to clayey to slightly gritty texture;dull,earthy luster; moderately soluble and expansive hydrophilic; poor to fair cohesiveness and adhesiveness; siltstone commonly grades between silty sandstone and sandy siltstone; noncalcareous. Sand, Tuffaceous Sandstone (7240' - 7300') = medium light gray to light gray with light yellowish gray secondary hue, individual grains dominantly clear to translucent quartz and volcanic glass,trace medium to dark gray to black; very fine lower to fine upper, dominantly fine lower; angular to subangular;fair to good sorting; loosely consolidated in ashy matrix;soft to fragile;crumbly to pulverulent;abrasive; noncalcareous. 28 CANRIG Hilcorp Alaska,LLC SRU 24-15 Tuffaceous Sandstone, Sand (7200' -7600') =very dominant soft ashy sandstone; often grading to very sandy "ash-stone"; commonly silty and clayey in part and also often grading to tuffaceous claystone and tuffaceous siltstone; supporting volcanic ash matrix often a greater percentage volume than sand grains; displays as small lumps of clayey volcanic ash the bind and hold very abundant floating sand grains;most very fine grains are glass shards from original vitric airfall deposition; shards are both a clastic constituent and integral part of the matrix; most silica-rich'coarse'silt consists of aggregated microshards; light olive gray to light gray with faint yellowish gray secondary hues,and mottled with very light gray to white streaks and spots; constituent monocrystalline and polycrystalline quartz, plus various cryptocrystalline silica, spotty feldspar, diverse lithics and dark mafic minerals;lithics dominated by variegated light green colored greenstones and dark gray to black argillite/phyllite rock fragments; note that the overall light olive gray colorization is derived from greenstones; remaining lithics are very diverse, especially the many hard meta-silicate rocks; note apparent significant fraction of sedimentary lithic grains,clasts;common clastic coal fragments;distinctive well distributed traces of orangish red jasper, greenish yellow epidote and dark yellowish orange calcareous tuff micro-fragments;black mafic submetallic minerals,with biotite and other micas dominate;disaggregated sand grains range from very fine lower to medium lower;most very fine are winnowed glass shards;moderately well sorted in fine lower to medium lower range, and often well sorted in fine range; equant grains, angular to rounded, discoidal to spherical; some cuttings have both very angular and well rounded grains; very ashy sublithic arenite to lithic arenite; bulk samples are usually homogeneous in overall appearance. Tuffaceous Siltstone, Tuffaceous Claystone, Very Carbonaceous Tuffaceous Claystone-Siltstone, Volcanic Ash(7620'-7750')=volcanic ash derived mud rocks;tuffaceous siltstone is the overall dominant constituent; subtle gradations to tuffaceous claystone, tuffaceous sandstone and airfall volcanic ash; very common silt-clay-ash with floating sand grains; abundant well distributed macro-shards and micro-shards; color groups include brownish gray, medium gray, olive gray, grayish brown, pale brown, greenish gray; all with strong to faint interchangeable secondary hues and lightness value variations; note very carbonaceous group is often dusky brown to brownish black to grayish black and often has black particles; soft to slightly brittle to firm;silty to clayey to various soft matte to complex mixed textures; earthy luster. Tuffaceous Sandstone(7760'-7800')=light olive gray with strong medium light gray and faint yellowish gray secondary hues;moderately well sorted from fine lower to medium lower;equant grains,angular to rounded; discoidal to sub spherical; volcanic ash matrix support in part grading to very sandy ash-stone; sublithic arenite; NO STAIN OR CUT IN PLAIN LIGHT; 90-100% DULL WHITISH YELLOW SAMPLE FLUORESCENCE;INSTANT PALE YELLOW TO WHITISH YELLOW CUT FLUORESCENCE WITH BROAD SLIGHTLY BRIGHTER AND MILKIER BLEED OUT; INCREASING INTENSITY WITH TIME TO BRIGHTER AND MORE OPAQUE; PALE YELLOW RESIDUAL FLUORESCENCE. Coal,Carbonaceous Material(7800'-7870')=black with brownish and grayish black secondary hues;very firm to moderately hard and brittle;planar fracture dominant with conchoidal and birdseye fracture common; flaky to platy; resinous to slightly earthy luster; smooth to slightly silty texture; sub bituminous; slow, weak outgassing bubbles observed. Tuffaceous Claystone,Tuffaceous Siltstone,Tuffaceous Sandstone(7870'-7950') = medium light to light gray to light grayish brown with light brown and light yellowish gray secondary hues;soft to crumbly and pulverulent; irregular to PDC bit action shaped cuttings; silty to clayey to gritty texture; dull to earthy luster; moderately soluble and expansive;hydrophilic;poor adhesiveness poor to fair cohesiveness;noncalcareous; siltstone commonly grades between silty sandstone, sandy siltstone and very fine tuffaceous sandstone. Sand,Tuffaceous Sandstone(7950'-8000')=light gray to very light gray with light yellowish to pinkish gray secondary hue, loose grains dominantly clear to translucent quartz and volcanic glass,trace medium to dark gray to black;very fine lower to fine upper,dominantly fine lower;angular to subangular;fair to good sorting; loosely consolidated in ashy tuff matrix;very fragile; pulverulent; noncalcareous. 29 CANRIG 14 Hilcorp Alaska,LLC SRU 24-15 Tuffaceous Sandstone, Sand, Conglomeratic Sand,Conglomerate(8040'-8250')=medium light gray with very strong light olive gray and faint yellowish gray and greenish gray secondary hues; overall colors difficult to characterize due to dense mottled appearance of grains enclosed by ash; many subtle shifts in colors and lightness values locally dependent on whether grain or matrix is dominant;dominant fine lower to medium lower and moderately well sorted in that range, but constant minor fraction of very fine, which are nearly all glass shards winnowed from the ash, and local zone at 8070'-8080'of disaggregated medium to very coarse sand and conglomerate; significant fraction very ashy sandstone grades to a very sandy"ash- stone"; dominantly equant grain dimensions; angular to rounded (to well rounded granules); discoidal to spherical; note large individual ashy cuttings pieces can display both very angular and well rounded grains; very ashy lithic arenite to sublithic arenite; usually homogeneous overall appearance; unreliable minor oil indicators due to"black products" in mud system;gas ratios indicate dry gas show regime. Tuffaceous Siltstone,Tuffaceous Claystone,Carbonaceous Tuffaceous Claystone-Siltstone,Volcanic Ash(7950'-8250')=volcanic ash derived mud rocks;brownish gray,medium gray,olive gray,grayish brown, pale brown,greenish gray,all with strong to faint interchangeable secondary hues and lightness values;soft to slightly brittle to firm; silty to clayey to various soft matte to mixed textures;earthy luster;all ash origin rocks with abundant glass microshards. Sandstone, Tuffaceous Sandstone, Sand (8250' - 8350') = tuffaceous sandstone continues with same properties; trace sandstone; light gray with light greenish gray hues and moderate salt and pepper appearance; individual grains dominantly clear to translucent quartz and volcanic glass and light to medium green to greenish gray and dark gray;very fine upper to fine lower;angular to subangular;well sorted;grain supported; hard; noncalcareous; loose grains dominantly clear to translucent quartz, trace medium to dark gray;very fine upper to rare trace pebble fragments,dominantly fine upper to lower; moderately well sorted; angular to subangular;trace thin coal beds. Tuffaceous Siltstone, Tuffaceous Claystone, Volcanic Ash, Carbonaceous Tuffaceous Claystone- Siltstone(8250'-8440') =volcanic ash derived mud rocks; medium gray to medium light gray, olive gray, greenish gray, grayish brown to pale brown, brownish black to dusky brown, and all interchangeable as primary colors and secondary hues; note many variations in lightness values; soft to slightly brittle to moderately brittle and firm;silty to clayey to various soft matte and mixed textures;earthy luster;all ash rocks display glass shards and local micro-gritty texture. Tuffaceous Claystone, Tuffaceous Siltstone, Tuffaceous Sandstone, Volcanic Ash (8440'-8640') = volcanic ash derived mud rocks;tuffaceous claystone is dominant, many gradations,transitions to tuffaceous siltstone and traces of tuffaceous sandstone and air-fall volcanic ash;note abundant claystone-siltstone with carbonaceous material;especially distinctive roughly parallel oriented flakes and particles of black to dusky brown coal and other organic material in laminar siltstone;dominant medium dark gray to medium light gray with very strong brownish gray and faint olive gray secondary hues;abundant brownish gray to light brownish gray and very abundant brownish black to dusky brown to grayish brown to pale brown carbonaceous mud rocks;soft to slightly brittle to moderately brittle;clayey to silty to ashy to various soft matte to organic textures; earthy to soft glassy luster; non to calcareous. Sand,Tuffaceous Sandstone(8640'-8730')=light to very light gray with individual grains dominantly clear to translucent quartz and volcanic glass trace light to dark gray to black;very fine upper to trace coarse upper, dominantly fine upper to lower; angular to subangular;fair to good sorting;dominantly unconsolidated with scattered ashy tuffaceous sandstone;very light gray with light brown secondary hues;fragile to pulverulent; acts as supporting matrix for sands; noncalcareous. Tuffaceous Claystone,Tuffaceous Siltstone,Tuffaceous Sandstone(8730'-8810') = medium light to light gray to light grayish brown with light brown and light pinkish gray secondary hues; soft to crumbly and pulverulent; irregular to PDC bit action shaped cuttings; silty to clayey to gritty texture; dull to earthy luster; moderately soluble and expansive hydrophilic;poor adhesiveness;poor to fair cohesiveness;noncalcareous; siltstone commonly grades between silty sandstone, sandy siltstone and very fine tuffaceous sandstone. 30 CANRIG Hilcorp Alaska,LLC SRU 24-15 Tuffaceous Claystone, Tuffaceous Siltstone (8810' - 8900') = medium light gray to light gray with light brownish gray and light olive gray secondary hues; soft to slightly firm; pulverulent; occasionally sticky; massive,irregular to PDC bit action shaped cuttings;silty to clayey to slightly gritty texture;dull,earthy luster; moderately soluble and expansive hydrophilic; poor to fair cohesiveness and adhesiveness; siltstone commonly grades between silty sandstone and sandy siltstone and very fine tuffaceous sandstone; noncalcareous. Tuffaceous Sandstone,Tuffaceous Siltstone(8900'-9000')=predominantly very light gray to light gray with occasional light brownish gray to light yellowish gray secondary hues;friable to firm friable,occasionally soft;massive;tuffaceous matrix with common sand and silt grains;commonly clear to translucent grains with some medium dark gray to black volcanic glass; grains dominantly very fine to fine in size; subangular to occasionally angular; moderate to good sorting;dull, earthy luster; noncalcareous. Tuffaceous Siltstone,Tuffaceous Claystone(9000'-9030')=light olive gray to brownish gray,occasional light gray to medium light gray hues; easy friable to firm friable; some bit deformed sides; massive, occasionally slightly sticky; silty to clayey, sometimes slightly gritty texture; dull, earthy luster; slightly expansive;poor to fair adhesiveness and cohesiveness;occasional few visible translucent to clear grains in siltstone; noncalcareous. Tuffaceous Claystone(9030'—9100') = light olive gray to light brownish gray with occasional light gray to medium light gray hues; soft to friable; massive, occasionally sticky; bit deformed side; overall clayey to occasional silty texture;dull earthy luster,occasionally waxy;slightly expansive;fair to poor cohesiveness and adhesiveness; noncalcareous. Tuffaceous Siltstone(9100'—9150')=light gray to medium light gray with light olive gray to light brownish gray hues;easy friable to friable,occasionally soft;massive;common bit deformed side;tuffaceous clayey,to silty to occasional gritty matrix;some visible translucent to clear quartz and some medium dark gray to black volcanics;visible clasts are subangular to sub-rounded;very well sorted;dominantly very fined grains to rare lower fine grains;dull, earthy luster. Tuffaceous Sandstone(9150'-9240')=dominantly very light gray to light gray with occasional yellowish gray and greenish gray hues; friable to easy friable, occasional firm friable; massive structure; grain supported; tuffaceous clayey to sometimes silty matrix; slight expansion with water; upper very fine to lower fine, rare upper fine grains;subangular to angular few subrounded grains;moderate to well sorting;grains commonly translucent to clear quartz, dark gray to black volcanics;overall dull, earthy luster. Tuffaceous Claystone, Tuffaceous Siltstone(9240'—9300') = medium light gray to olive gray with light brownish gray hues; easy friable to friable; massive;common bit deformed side;clayey to silty texture;dull, earthy luster;some translucent to clear very fine quartz grains visible in siltstone;siltstone commonly grades into silty sandstone with tuffaceous matrix; claystone is commonly sticky with low cohesiveness and adhesiveness;dull, earthy luster; Tuffaceous Sandstone, Sandstone, Sand (9300' - 9390') = tuffaceous sandstone continues with same properties; trace sandstone; light gray with light greenish gray hues and moderate salt and pepper appearance; individual grains dominantly clear to translucent quartz and volcanic glass and light to medium green to greenish gray and dark gray; very fine upper to coarse lower, dominantly medium; angular to subangular;fair sorting;grain supported;firm to friable; noncalcareous. Tuffaceous Claystone, Tuffaceous Siltstone (9390' - 9470') = medium light gray to light gray with light brownish gray and light olive gray secondary hues; soft to very firm; pulverulent; moderate to very sticky; massive, irregular to PDC bit action shaped cuttings; silty to clayey texture;dull to earthy luster; hydrophilic; moderately to very soluble and expansive; poor to fair cohesiveness; fair to good adhesiveness; noncalcareous siltstone commonly grades between silty sandstone and sandy siltstone and very fine tuffaceous sandstone. 31 CANRIG H Hilcorp Alaska,LLC SRU 24-15 Tuffaceous Siltstone,Tuffaceous Sandstone(9470'-9570')=very light gray to light gray with light olive gray and medium gray hues;friable to firm friable occasionally easy friable;silty to gritty with sometimes clayey to tuffaceous matrix; grains translucent to clear quartz with dark gray to black volcanics; subangular to subrounded grains; moderate to well sorting; lower very fine to lower fine,occasionally upper fine grain size; lithology often ranges between silty sandstone to sandy siltstone; dull, earthy luster; massive structure; NSOFC. Tuffaceous Claystone,Tuffaceous Sandstone, Loose Sand(9580'-9810')=light gray to very light gray, varies with slight olive gray and light bluish gray hues; soft; pulverulent, crumbly in part;fair cohesive, poor adhesive properties;amorphous fracture;tabular to irregular cuttings habit;generally dull,occasionally slightly subwaxy,often slightly sparkly with locally abundant extremely fine glass shards;smooth to slightly abrasive; no apparent structure, microfine layered carbonaceous detritus, bitumen and dead oil stain common; note grayish black and brownish black poorly developed carbonaceous shale,sublithic coal;locally abundant loose sand and poorly indurated white to grayish white tuffaceous sandstone;fine grain;subrounded to subangular; subprismoidal to discoidal;moderate to well sorted in part;friable,fragile,poorly consolidated;noncalcareous; dominantly translucent grayish white to very light gray quartz and feldspars,transparent volcanic glass clasts common with occasional dark gray to grayish black lithics,greenstone;varies from grain supported to matrix supported with abundant altered tuff, ash, clay component; noncalcareous; no visible porosity; NSOFC. Tuffaceous Claystone,Tuffaceous Siltstone,Tuffaceous Sandstone(9810'-9980')=claystone initially brownish gray,pale yellowish brown to slightly dark yellowish brown;firm;malleable,sectile;irregular to earthy fracture in part; tabular to earthy cuttings habit; dull, subwaxy to waxy; generally smooth, nonabrasive; noncalcareous; organic with locally abundant coaly flakes and thinly bedded layers; inter- bedded and alternating with light to medium light gray tuffaceous claystone that is soft to slightly firm;pulverulent,crumbly to brittle in part;irregular fracture;tabular to slightly nodular cuttings habit;tuffaceous to ashy,often silty;very arenaceous in part and grades towards an argillaceous, ashy tuffaceous sandstone;quartz clasts generally fine grain although upper fine to lower medium,grain supported sandstone appears to be thinly inter-bedded through this interval;overall noncalcareous;none to trace visible porosity in more coarse,somewhat cleaner sandstone; NSOFC. Tuffaceous Sandstone,Sand(9980'-10200')=medium gray to medium light gray group of colors;all occur as primary colors and secondary colors, hues;also faint yellowish gray,brownish gray secondary hues; note significant overall grainy mottled appearance with alternating very strong light olive gray and faint yellowish gray and greenish gray secondary hues; overall colors difficult to characterize due to dense mottled appearance of both light and dark grains enclosed by volcanic ash; note complex subtle shifts in colors and lightness values are determined by localized characteristics of the volcanic ash; dominant fine lower to medium lower and moderately well sorted in that range,note constant minor fraction of very fine,consisting of nearly all shards winnowed from volcanic ash,and traces of possibly bimodal floating medium to very coarse grains;very abundant fraction of very ashy sandstone grades to a very sandy ash-stone;dominantly equant grain dimensions;angular to rounded trace well rounded;discoidal to spherical;note some larger tuffaceous sandstone cuttings pieces display both very angular and well rounded grains; very ashy lithic arenite to sublithic arenite;mostly homogeneous overall appearance;note that olive coloration is generally derived from presence of greenstone lithics fragments and alteration products; note roughly 75% of quartz grains are colorless to very pale gray and translucent, 25% of quartz and nearly all sand-sized grains of amorphous volcanic glass are colorless and transparent. Tuffaceous Claystone,Tuffaceous Siltstone,Tuffaceous Sandstone,Volcanic Ash(9980'-10300')= volcanic ash origin mud rocks;tuffaceous siltstone dominant with many gradations,transitions to tuffaceous claystone an tuffaceous sandstone; abundant carbonaceous claystone-siltstone; distinct roughly parallel oriented particles of black to dusky brown coal and other organic material in laminar siltstone; dominant medium dark gray to medium light gray with strong brownish gray and olive gray secondary hues;abundant light brownish gray to brownish gray and abundant dusky brown to pale brown;soft to slightly brittle;clayey to ashy to silty to soft matte textures;earthy to soft glassy luster. 32 CANRIG Hilcorp Alaska,LLC SRU 24-15 Tuffaceous Sandstone(10300'-10440')=grayish white to white,very light gray;upper fine to lower medium grain in part; subrounded, rounded grains common; subdiscoidal to discoidal, occasionally subprismoidal; moderate to well sorted; 70-80% poorly consolidated, 20-30% loose disaggregated sand; noncalcareous; matrix consists of weathered ash, tuff, devitrified clays; note locally abundant extremely fine well rounded translucent quartz grains and glass shards as a matrix component;dominantly translucent and transparent quartz, volcanic glass, with grayish white to very light gray feldspars, dark gray to grayish black, yellowish brown lithics;occasional mafic minerals;note trace fine biotite;interval is overwhelmingly very ashy and varies from an arenaceous clay, ash- stone to an argillaceous sandstone; note occasional conglomerate pebble fragments, occasional earthy carbonaceous shale, sublithic coal. Tuffaceous Claystone,Tuffaceous Sandstone,Loose Sand(10440'-10560')=light gray to medium light gray with slight to moderate pale yellowish brown hues, light olive gray;fragile to firm;crumbly,pulverulent; irregular to amorphous fracture; tabular, curved cut-tings habit resulting from pdc bit metamorphism; dull, subwaxy with increased tuff,ash content,slightly sparkly in part with extremely fine glass shards,arenaceous silt; smooth texture, non to very slightly abrasive; no apparent bedding or structure; rare microthin very fine sand lenses; locally grades towards a siltstone, sublithic arenite; locally carbonaceous in part as a carbonaceous shale, sublithic coal; interbedded and alternates with pale yellowish brown to light yellowish brown, light brownish gray earthy claystone=soft to firm,fragile;earthy, hackly,often subplaty,occasionally flaky; varies from slightly tuffaceous, argillaceous to silty in part; often contains microfine coaly layers and carbonaceous material and grades from an earthy organic rich sediment to sublithic coal to moderately developed coal;tuffaceous sandstone and loose sand continue as previously described. Tuffaceous Sandstone,Loose Sand,Conglomeratic Sand(10560'-10740')=grayish white to white,very light gray with slight light bluish gray hue;bimodal upper fine and lower medium grain;subrounded to rounded; discoidal to subdiscoidal; well sorted; brittle to firm, crumbles easily when probed; non to very slightly calcareous in part; predominantly matrix supported but grain supported sediments are present; matrix is primarily altered ash, tuff, devitrified clay;slightly silty in part;translucent, transparent, grayish white quartz dominant;very slight pepper appearance with 20%grayish black to medium dark gray lithics;note occasional moderate reddish orange to orange mafic clasts;note trace dusky brown to brownish black dead oil stain;note locally abundant pebble fragments; note that a significant fraction of the sandstone are actually tiny floating sand-sized clasts of devitrified ash in a matrix of softer less devitrified ash; many bit cut faces of the tuffaceous sandstone has blackish and greenish streaks Tuffaceous Sandstone(10740'- 10910') =greenish gray primary colors with very strong medium gray to medium light gray secondary colors, hues and faint yellowish gray to light gray hues; hues; note significant overall grainy mottled appearance with alternating very strong light olive gray and faint yellowish gray and greenish gray secondary hues; overall coloration is difficult to characterize due to pervasive finely mottled appearance of contrasting very light(white)and dark(black and green)grains/specks/patches enclosed by reworked vitric volcanic ash and, or devitrified ash; localized change within the ash produce subtle shifts in overall color and lightness value;dominant fine lower to medium lower and moderately well sorted;very fine grains are mostly shards winnowed from volcanic ash; major fraction of tuffaceous sandstone grades to an ash-stone with abundant floating particles and sand grains; dominant equant grain dimensions;angular to rounded;trace well rounded;discoidal to spherical;occasional sandstone fragments have both very angular and well rounded grains;very ashy sublithic arenite to lithic arenite;very common to abundant greenstone group minerals and rock fragments (responsible for overall greenish coloration). 33 CANRIG Hilcorp Alaska,LLC SRU 24-15 Tuffaceous Sandstone, Sandstone (10910' - 11120') = olive gray to light olive gray with many subtle secondary hues that include medium gray to medium light gray to greenish gray to yellowish gray to light brownish gray; many variegated greenish specks and streaks and greenstone origin rock fragments and minerals cause the overall olive gray coloration; also note that large fractions of the rock are mix of high lightness value very light gray to white volcanic ash and darker carbonaceous or other dark clays and various minerals and rock fragments;very prominent abundant vitric and devitrified volcanic ash supporting matrix; much of the rock is very closely gradational to a very sandy ash-stone; range from very fine lower to coarse lower, but mostly moderately well to well sorted at fine upper to medium lower; dominant equant grains, angular to rounded, subdiscoidal to spherical; rare to trace pieces of grain supported sandstone with intergranular weak silica and calcite cementation;NOTE OCCASIONAL PETROLEUM ODOR IN PITS AND ON SAMPLES;NO VISIBLE STAINING,BUT VERY SLIGHT BLUISH SHEEN ON SOME SAMPLES WHEN CAUGHT; NO CUT IN PLAIN LIGHT; 20-100% MOD BRIGHT WHITISH YELLOW TO YELLOW CUT FLUORESCENCE; INSTANT BRIGHT WHITISH YELLOW TRANSLUCENT TO TRANSPARENT CUT FLUORESCENCE THAT CHANGES TO PALER BLUISH WHITE WITH TIME; PALE WHITISH YELLOW RESIDUE FLUORESCENCE. Tuffaceous Sandstone(11120'-11350')=grayish white to white,very light gray,with slight light bluish gray to light olive gray hues; lower fine to upper very fine, some upper fine grain; well rounded to subrounded; spherical to subdiscoidal; well sorted; very soft to slightly mushy, poorly consolidated; non to very slightly calcareous in part; very ashy, tuffaceous, argillaceous matrix; often difficult to distinguish between an arenaceous ash-stone and an ashy sandstone; slightly silty in part;dominantly translucent and transparent quartz grains with abundant volcanic glass clasts and shards; minor dark gray, grayish black, green-stone, reddish orange to orange mafic components;no visible porosity;TRACE YELLOWISH BROWN OIL STAIN, LOCALLY 10-20%BITUMEN OR DEAD OIL STAIN;SLIGHT HYDROCARBON ODOR;90-60%YELLOW TO YELLOWISH ORANGE FLUORESCENCE 11120' TO 11180', DECREASING FROM 10% TO NONE BELOW 11180';IMMEDIATE STRONG BLUISH MILKY WHITE BURST CUT WITH QUICKLY DEVELOPING BLUISH WHITE STREAMERS;WELL DISPERSED LIGHT MILKY TO YELLOW FLUORESCENT RING;NO VISIBLE RESIDUE RING. Tuffaceous Claystone (11190'- 11350') = light gray to greenish gray, slight light bluish gray hues; soft to firm, fragile, pulverulent, sectile; irregular to amorphous fracture; tabular cuttings habit; dull to subwaxy, occasionally slightly sparkly;varies from ashy to slightly earthy,often silty, occasionally sandy;noncalcareous; note occasional earthy carbonaceous shale. Tuffaceous Sandstone, Sandstone(11310'- 11455') = olive gray to light olive gray with medium gray to medium light gray,greenish gray,yellowish gray secondary hues;note variegated greenstone origin specks, streaks;abundant mottled very light gray to white volcanic ash with dark carbonaceous clays,black minerals, lithic fragments; pervasive vitric and devitrified volcanic ash matrix; grades to very sandy ash-stone; moderately well sorted from fine lower to medium upper;equant grains,angular to rounded, subdiscoidal to spherical;trace grain supported sandstone with weak silica and calcite cement;OCCASIONAL PETROLEUM ODOR, NO VISIBLE STAIN, NO PLAIN CUT, SPOTTY SLIGHT BLUISH SHEEN; 40-60% PALE TO MARGINAL BRIGHT YELLOW SAMPLE FLUORESCENCE; INSTANT MODERATE BRIGHT TO VERY BRIGHT YELLOWISH WHITE TO WHITE TRANSLUCENT TO TRANSPARENT CUT FLUORESCENCE THEN BLUISH WHITE-SLIGHTLY MILKIER WITH MORE TIME, BRIGHT TO VERY BRIGHT MILKY WHITISH YELLOW RESIDUE RING FLUORESCENCE, NO RESIDUE CUT. 34 CANRIG H Hilt-asp Alaska,LLC SRU 24-15 Tuffaceous Sandstone,Carbonaceous Claystone,Tuffaceous Siltstone,Volcanic Ash(11450'-11590') = note carbonaceous shale indicated on log is actually all grayish brown to dusky brown to blackish brown carbonaceous claystone; some carbonaceous claystone is more argillaceous than tuffaceous, slightly to moderately brittle, mostly fragile and separates in roughly parallel fashion;tuffaceous sandstone has same general characteristics as previous interval, but only RARE VERY POOR OIL FLUORESCENCE AND NO CUT FLUORESCENCE;gradations between all volcanic ash derived rocks are less discriminate and overall is tuffaceous mudstone with very localized variations in grain/particle sizing;often difficult to separate tuffaceous sandstone and volcanic ash:overall color is white with light to dark gray mottled patches,all sand grains are floating in ash, but at uneven concentrations, so that well distributed loosely spaced grains represent a very sandy ash-stone and tightly spaced grains a sandstone; added to complexity is the presence of sand size particles of devitrified ash also enclosed by the soft clayey,powdery matrix,glass shards of varying size and distribution, and uneven winnowing of the ash itself. Mixed Lithologies(11590'-11700')=note changing characteristics of tuffaceous siltstone:cuttings habit is becoming thinner, platy and very close to silty shale; minor non-tuffaceous claystones have distinctive homogeneous texture and non-mottled pale brown and light brown colors;tuffaceous sandstone displays a very platy cuttings habit and locally well sorted and increasingly rounded. 35 CANRIG H Hilcorp Alaska,LLC SRU 24-15 3.3 Connection Gases 50 units=1%Methane Equivalent Measured Subsea Total Gas over Measured Subsea Total Gas over Depth Vertical Depth background Depth Vertical Depth background (feet) (feet) (units) (feet) (feet) (units) 7875 -7502 524 9924 -9500 30 7935 -7620 287 9986 -9556 84 7995 -7680 877 10051 -9621 58 8065 -7751 1141 10112 -9678 138 8130 -7814 2007 10177 -9739 35 8190 -7874 145 10229 -9789 111 8255 -7937 184 10302 -9857 154 8315 -7996 367 10364 -9915 200 8380 -8059 456 10426 -9974 105 8450 -8126 1630 10491 -10035 214 8505 -8178 1150 10553 -10093 159 8570 -8240 1501 10615 -10151 105 8630 -8296 1422 10678 -10209 100 8695 -8357 1990 10742 -10269 160 8755 -8412 1884 10808 -10333 74 8885 -8533 450 10871 -10391 136 8945 -8588 310 10933 -10449 121 9005 -8643 400 10997 -10509 221 9070 -8703 490 11061 -10570 314 9135 -8736 260 11123 -10628 167 9155 -8783 1560 11185 -10687 132 9260 -8888 1620 _ 11248 -10747 114 9325 -8939 1907 11312 -10807 73 9390 -9010 933 11374 -10866 88 9450 -9055 1987 11437 -10926 92 9515 -9115 2100 11499 -10985 75 9676 -9266 42 11562 -11046 94 9797 -9382 30 _ 11624 -11105 114 9862 -9441 62 11689 -11168 96 36 ANRIG Hilcorp Alaska,LLC SRU 24-15 3.4 Trip Gases 50 units= 1%Methane Equivalent Measured Depth Trip to Gas (feet) (feet) (units) 2958' Surface 79u 3780' Shoe @ 2950' 75u 6289' Shoe @ 2950' 517u 7615' Shoe @ 2950' 1454u 8355' DTG 859u 8442' Surface 2259u 8900' DTG 409u 9455' DTG 725u 9580' WG (casing point) 1503u 10742' Shoe @ 9565' 1660u 11710' WG (casing point) 821u Surface 11315' (top of fish) 799u 11710' Clean out run 1085u 3.5 Sampling Program/Sample Dispatch Set Type/Purpose Frequency* Interval Dispatched to Hilcorp Alaska LLC 3800 Centerpoint Drive A Washed and dried 30 ft 3000 ft—10740 ft Suite #1000 reference samples 10 ft 10740 ft—11710 ft Anchorage AK 99508 Attn.: Debra Oudean (907)777-8337 Hilcorp Alaska LLC 3800 Centerpoint Drive B Washed and dried 30 ft 3000 ft—10740 ft Suite #1000 reference samples 10 ft 10740 ft—11710 ft Anchorage AK 99508 Attn.:Debra Oudean (907)777-8337 Canrig Drilling Technology Wet unprocessed 1615 Jefferson Island Road C samples for Canrig QC 10 ft 10740 ft to 11710 ft New Iberia LA 70560 Attn.: Geoff Davison (337)380-5298 Canrig Drilling Technology Drilling Mud Samples 1615 Jefferson Island Road D samples for Canrig QC 50 ft 10750 ft to 11700 New Iberia LA 70560 Attn.: Geoff Davison (337)380-5298 *Sample frequency was locally altered according to drill rate constraints and zones of interest. 37 CANRIG H Hilcorp Alaska,LLC SRU 24-15 4 DRILLING DATA 4.1 Directional Survey Data Measured Incl. AZim, True Northing Easting Vertical Dogleg Depth ° ° Vertical Section Rate (ft) ( ) ( ) Depth (ft) (ft) (ft) (ft) (°/100ft) 18.50 0.00 0.00 18.50 0.00 0.00 0.00 0.00 _ 265.00 0.87 309.13 264.99 1.18 -1.45 1.36 0.35 337.00 1.14 308.65 336.98 1.97 -2.44 2.28 0.38 452.00 1.09 255.40 451.96 2.41 -4.39 4.19 0.87 576.00 2.12 261.51 575.91 1.78 -7.80 7.64 0.84 694.00 3.11 269.30 693.79 1.41 -13.16 13.01 0.89 814.00 4.58 264.36 813.51 0.90 -21.18 21.05 1.25 937.00 4.70 265.04 936.11 -0.01 -31.09 31.00 0.11 1064.00 4.69 266.10 1062.68 -0.82 -41.45 41.39 0.07 1189.00 4.62 267.29 1187.27 -1.40 -51.58 51.53 0.10 1313.00 4.60 266.38 1310.87 -1.95 -61.53 61.50 0.06 _ 1440.00 4.45 269.58 1437.47 -2.31 -71.54 71.50 0.23 _ 1570.00 5.36 264.68 1567.00 -2.91 -82.63 82.60 0.77 1697.00 5.15 262.51 1693.46 -4.20 -94.18 94.23 0.23 1823.00 5.42 260.50 1818.93 -5.92 -105.66 105.80 0.26 1946.00 5.40 262.52 1941.38 -7.63 -117.13 117.37 0.16 2010.00 5.01 261.94 2005.12 -8.42 -122.88 123.16 0.61 2138.00 4.58 257.67 2132.67 -10.29 -133.41 133.80 0.44 2264.00 4.43 259.81 2258.28 -12.23 -143.11 143.63 0.18 2390.00 3.55 259.04 2383.97 -13.83 -151.73 152.35 0.70 2516.00 2.13 268.18 2509.82 -14.65 -157.90 158.56 1.18 2643.00 1.46 250.52 2636.75 -15.26 -161.79 162.48 0.68 2768.00 0.15 353.19 2761.74 -15.63 -163.31 164.03 1.20 2892.00 0.22 359.09 2885.74 -15.23 -163.33 164.02 0.06 2982.00 0.13 176.94 2975.74 -15.16 -163.33 164.01 0.39 3077.00 0.32 124.19 3070.74 -15.42 -163.10 163.81 0.28 3140.00 0.34 174.81 3133.74 -15.70 -162.94 163.67 0.45 3266.00 0.41 140.62 3259.74 -16.42 -162.62 163.40 0.18 3392.00 0.50 128.66 3385.73 -17.12 -161.90 162.74 0.10 3519.00 0.51 121.90 3512.73 -17.76 -160.99 161.88 0.05 3645.00 0.66 136.91 3638.72 -18.59 -160.02 160.98 0.17 3771.00 0.69 133.99 3764.71 -19.64 -158.98 160.02 0.04 3896.00 0.57 130.56 3889.70 -20.57 -157.96 159.08 0.10 4024.00 0.68 135.78 4017.70 -21.53 -156.95 158.14 0.10 4150.00 0.74 132.67 4143.69 -22.62 -155.83 157.11 0.06 38 CANRIG H Hilcorp Alaska,LLC SRU 24-15 Survey Data(continued) Measured Incl. Azim. True Northing Easting Vertical Dogleg Depth (°) (°) Vertical (ft) (ft) Section Rate (ft) Depth (ft) (ft) (°/100ft) 4275.00 0.68 146.72 4268.68 -23.78 -154.83 156.21 0.15 4401.00 0.68 151.53 4394.67 -25.07 -154.06 155.54 0.05 4528.00 0.48 35.93 4521.66 -25.30 -153.39 154.89 0.78 4654.00 0.58 23.30 4647.66 -24.28 -152.83 154.25 0.12 4717.00 0.33 4.41 4710.66 -23.81 -152.69 154.07 0.46 4844.00 0.24 37.50 4837.66 -23.23 -152.50 153.84 0.14 4970.00 0.28 38.70 4963.65 -22.78 -152.15 153.45 0.03 5097.00 0.37 64.37 5090.65 -22.37 -151.58 152.86 0.13 5222.00 0.35 42.87 5215.65 -21.91 -150.96 152.20 0.11 5349.00 0.31 59.05 5342.65 -21.45 -150.40 151.61 0.08 5475.00 0.58 285.95 5468.65 -21.10 -150.72 151.90 0.65 5601.00 0.49 309.46 5594.64 -20.58 -151.75 152.89 0.19 5727.00 0.52 300.78 5720.64 -19.95 -152.66 153.74 0.07 5853.00 0.48 315.17 5846.63 -19.28 -153.52 154.55 0.10 5979.00 0.43 316.11 5972.63 -18.56 -154.22 155.19 0.04 6106.00 0.45 334.23 6099.62 -17.77 -154.77 155.68 0.11 6232.00 0.43 302.79 6225.62 -17.07 -155.38 156.24 0.19 6359.00 0.44 345.46 6352.62 -16.34 -155.90 156.70 0.25 6485.00 0.29 346.98 6478.61 -15.56 -156.10 156.83 0.12 6611.00 0.35 309.91 6604.61 -15.00 -156.46 157.16 0.17 6738.00 0.40 309.90 6731.61 -14.47 -157.10 157.75 0.04 6864.00 0.22 319.76 6857.61 -14.00 -157.60 158.21 0.15 6991.00 0.36 355.12 6984.61 -13.42 -157.79 158.35 0.17 7117.00 0.39 322.88 7110.60 -12.68 -158.08 158.59 0.17 7243.00 0.50 323.18 7236.60 -11.90 -158.67 159.11 0.09 7369.00 0.30 342.33 7362.60 -11.15 -159.10 159.48 0.19 7432.00 0.24 331.75 7425.60 -10.87 -159.21 159.57 0.12 7495.00 0.49 302.72 7488.59 -10.61 -159.50 159.84 0.48 7560.00 1.43 275.49 7553.58 -10.38 -160.54 160.86 1.57 7627.00 2.06 267.82 7620.55 -10.35 -162.58 162.89 1.00 7690.00 2.07 266.24 7683.51 -10.47 -164.84 165.16 0.09 7753.00 2.97 266.91 7746.45 -10.63 -167.61 167.93 1.43 7816.00 3.89 265.64 7809.34 -10.88 -171.37 171.70 1.47 7880.00 4.65 262.06 7873.16 -11.40 -176.10 176.46 1.26 7943.00 5.18 261.26 7935.93 -12.19 -181.44 181.84 0.85 8006.00 6.16 263.44 7998.62 -13.01 -187.61 188.06 1.59 8069.00 7.38 265.47 8061.18 -13.71 -195.00 195.48 1.97 8132.00 9.09 265.42 8123.53 -14.43 -204.00 204.50 2.71 8195.00 10.37 266.93 8185.62 -15.13 -214.62 215.15 2.07 8258.00 12.11 269.04 8247.41 -15.55 -226.89 227.42 2.84 39 CANRIG H Hileorp Alaska,LLC SRU 24-15 Survey Data(continued) Measured Incl. Azim. True Northing Easting Vertical Dogleg Depth (°) (°) Vertical (ft) (ft) Section Rate (ft) Depth (ft) (ft) (°/100ft) 8322.00 13.13 269.74 8309.86 -15.69 -240.87 241.37 1.61 8386.00 14.75 270.89 8371.97 -15.60 -256.29 256.73 2.57 8446.00 17.00 269.16 8429.68 -15.61 -272.70 273.09 3.83 8509.00 18.52 270.10 8489.68 -15.73 -291.92 292.26 2.46 8573.00 19.43 270.30 8550.20 -15.65 -312.73 313.00 1.43 8637.00 20.80 270.99 8610.30 -15.40 -334.73 334.92 2.17 8701.00 21.37 269.86 8670.01 -15.23 -357.76 357.86 1.09 8763.00 21.60 269.57 8727.70 -15.35 -380.46 380.51 0.41 8829.00 22.61 267.00 8788.85 -16.10 -405.28 405.31 2.12 8888.00 22.92 263.76 8843.26 -17.94 -428.03 428.14 2.19 8950.00 22.80 263.31 8900.39 -20.65 -451.96 452.21 0.34 9014.00 22.90 262.87 8959.37 -23.64 -476.63 477.04 0.31 9077.00 22.85 263.05 9017.41 -26.65 -500.94 501.50 0.14 9143.00 22.71 263.51 9078.26 -29.64 -526.32 527.03 0.34 9205.00 22.66 263.11 9135.47 -32.42 -550.07 550.93 0.26 9268.00 22.32 261.65 9193.68 -35.62 -573.95 574.99 1.04 9331.00 21.87 259.86 9252.05 -39.42 -597.34 598.60 1.29 9394.00 21.69 259.67 9310.55 -43.57 -620.34 621.85 0.31 9456.00 21.41 260.59 9368.22 -47.48 -642.78 644.52 0.71 9521.00 21.30 260.44 9428.76 -51.38 -666.12 668.10 0.19 9617.00 20.28 259.39 9518.50 -57.34 -699.67 702.01 1.13 9679.00 19.99 260.12 9576.71 -61.13 -720.67 723.24 0.62 9743.00 19.87 260.47 9636.88 -64.81 -742.17 744.96 0.26 9808.00 19.35 263.09 9698.11 -67.94 -763.76 766.73 1.57 9870.00 19.12 265.10 9756.65 -70.04 -784.07 787.14 1.13 9934.00 19.07 265.98 9817.13 -71.67 -804.95 808.08 0.46 9995.00 19.10 266.05 9874.78 -73.05 -824.84 828.02 0.06 10053.00 19.37 268.13 9929.54 -74.02 -843.92 847.12 1.27 10117.00 19.00 267.43 9989.99 -74.83 -864.94 868.14 0.68 10180.00 19.43 268.83 10049.48 -75.51 -885.66 888.85 1.00 10246.00 20.13 269.06 10111.58 -75.92 -907.99 911.14 1.07 10308.00 20.06 268.95 10169.81 -76.29 -929.29 932.41 0.13 10372.00 19.92 269.31 10229.95 -76.62 -951.17 954.24 0.29 10436.00 20.31 268.86 10290.05 -76.97 -973.17 976.21 0.66 10500.00 20.66 268.10 10350.00 -77.57 -995.56 998.58 0.69 10560.00 20.70 269.40 10406.14 -78.03 -1016.75 1019.73 0.77 10624.00 20.81 267.80 10465.98 -78.58 -1039.42 1042.38 0.90 10690.00 20.61 267.69 10527.72 -79.50 -1062.74 1065.70 0.31 10750.00 20.43 267.96 10583.91 -80.30 -1083.76 1086.72 0.34 10813.00 19.90 267.80 10643.05 -81.10 -1105.46 1108.42 0.85 40 CANRIG H Hilcorp Alaska,LLC SRU 24-15 Survey Data(continued) Measured Incl. Azim. True Northing Fasting Vertical Dogleg Depth ° ° Vertical Section Rate (ft) ( ) ( ) Depth (ft) (ft) (ft) (ft) (°/100ft) 10876.00 19.71 268.36 10702.32 -81.82 -1126.79 1129.74 0.43 10938.00 19.38 268.22 10760.75 -82.44 -1147.52 1150.46 0.54 11004.00 19.13 268.18 10823.06 -83.12 -1169.28 1172.21 0.38 11068.00 19.36 267.02 10883.48 -84.01 -1190.35 1193.29 0.70 11128.00 19.11 267.76 10940.13 -84.91 -1210.10 1213.04 0.58 11190.00 19.00 267.35 10998.73 -85.77 -1230.32 1233.27 0.28 11251.00 18.99 267.25 11056.41 -86.71 -1250.15 1253.12 0.06 11317.00 18.31 266.83 11118.95 -87.79 -1271.23 1274.22 1.05 11378.00 18.02 265.90 11176.91 -89.00 -1290.21 1293.23 0.67 11441.00 17.50 265.38 11236.90 -90.46 -1309.37 1312.45 0.86 11502.00 17.05 265.87 11295.15 -91.84 -1327.43 1330.56 0.78 11565.00 16.36 265.46 11355.49 -93.21 -1345.49 1348.67 1.11 11629.00 16.31 266.69 11416.91 -94.44 -1363.45 1366.67 0.55 11656.00 15.79 266.53 11442.86 -94.88 -1370.90 1374.13 1.93 11710.00 15.79 266.53 11494.82 -95.77 -1385.57 1388.82 0.00 41 CANRIG N Z Z Z O p L H p 0 0 H O z z z cn _ _ _ •1Y _ W Lb H H H Q Q ¢ FL 3 Q Q O O 0 IL 4 s w w r w in r J J p J r U U U CD CD CO N >a W _ Lam() O O O co O Q a Q' N O N N N 6 Q O� co CAD LO 0 0 O Lo O a1 CO W CO Co co Q O .0 nj to CV � O O O co O Y as ,_a- Ch O N O N > Q E O CD N. 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C2t(PPrn) 22 706 31 304,094 i0 _ 0.01111 ---Cl m 4.408 140,669 6,239 - 1,489 111111: _ lllll� C3(ppm) - 159 - 357 iNriiiii611`7■ C4(ppm) 57 - 127 0002 ,,,, ,,, C,/C. C5(ppm) - 20 ; - 45 Lithology Tuffaceous Sandstone/Sand=overall 95%tuffaceous sandstone;prominent light olive gray with moderate medium light gray to yellowish gray secondary hues;overall had very mottled appearance;fine lower to medium lower;moderately well to well sorted;equant grain dimensions,angular to rounded,discoidal to subspherical;non-calcareous;lithic arenite to sublithic arenite;estimate 65-85%quartz(monocrystalline- polycrystalline),5-15%feldspar, 10-20%lithics and mafic minerals;no discernible staining,but very faint brownish yellow coloration,estimate 95%very pale to pale to very marginally bright whitish yellow to yellowish white sample fluorescence,very fast to instant pale to marginally bright whitish yellow cut fluorescence with very slow bleed-out to brighter,more opaque fluorescence;pale-dull goldish yellow residual fluorescence that diminishes with time from initially marginally bright to very,very faint. Cuttings Analysis Odor None Fluorescence Cut Fluorescence Residual Cut Stain Amount 95-100% Type Fast Amount 0% Amount Rare Distribution Even Intensity PI>Stmg Color None — Color V PI YelBrn Intensity Pale Color Mod yel-w Residual Fluorescence Cut Color White-Yel Intesity Pale-v pale Color None Color Gold-yel Oil Show Rating 1.38 Very Poor Free Oil in Mud Comments The Pixler Plot puts the interval into the dry gas range and appears to indicate that what was being observed is a false show derived from the hydrocarbon-based additives in the mud. Strength of cut fluorescence seems to be strong enough suggest more than simple contamination,but there is no easy way to determine extent of contamination. Note that some cuts with faint streaming fluorescence could be the result of mud product infused into the cuttings,but other characteristics,especially the ability to produoe a cut when h drated su•.est at least a trace of hydrocarbon liquids. Report by: Craig Silva 45 CANRIG H Hi!,orp Alaska,LLf SCU 24-15 CANRIG Hydrocarbon Show Report# 2 Operator: Hilcorp Alaska,LLC Well: SRU 24-15 API Number:50-133-20609-00-00 Field: Swanson River Date: 4/17/2013 Rig: Doyon Arctic Fox Time: 12:17 AM County: Kenai Borough Depth Start End State: Alaska 10928'mD 10973'MD Country: USA 10751'TVD 10794'TVD Averages Before During After Maximum Pixler Plot ROP(fph) 45 -T6-1 127 224 i0000 — T WOB 10 4 i 6 17 RPM 57 62 75 71 loco Mud Weight 11 11 11 11 Chloride 31,000 31,000 31,000 31,000 �'+`t"� r Total Gas 83 135 149 201 . Cl (ppm) 11,636 19,546 23,262 31,954 to .- "_ — C2(ppm) 1,127 1,152 1,279 2,032 C3(ppm) - 500 1,303 1,439 1,976 1 - C4(ppm) 83 908— 954 1,430 CIC2 ,,�, C„C5 C5(ppm) 24 423 447 , 653 Lithology Tuffaceous Sandstone/Sandstone=olive gray to light olive gray with many subtle secondary hues that include medium gray to medium light gray to greenish gray to yellowish gray to light brownish gray;many variegated greenish specks and streaks and greenstone origin rock fragments and minerals cause the overall olive gray coloration;also note that large fractions of the rock are a blended mix of high lightness value very light gray to white volcanic ash,and darker carbonaceous or other dark clays and various minerals and rock fragments;very prominent abundant vitric and devitirified volcanic ash supporting matrix; much of the rock is very closely gradational to a very sandy"ash-stone";range from very fine lower to coarse lower,but mostly moderately well to well sorted at fine upper to medium lower; dominant equant grains, angular to rounded, subdiscoidal to spherical; rare to trace grain supported sandstone with intergr weak silica and calcite cementation. Cuttings Analysis Odor Sli-Mod Fluorescence Cut Fluorescence Residual Cut Stain Amount80-100% Type Instant Amount Trace Amount None-Vfainl Distribution Even Intensity Strong Colorjvv fnt yel brn Color yel bm-brn Intensity Mod-M Bri Color Bri YelWh Residual Fluorescence Cut Color Wh-Yel Intesity Bright Color N-vvFnt brn Color whitsh yel Oil Show Rating 2.71 Free Oil in Mud None Comments Note occasional petroleum odor in pits and on samples;no visible staining,but very slight bluish sheen or some samples when first collected;no colored cuts in plain light; 20-100%moderately bright whitish yellow to yellow sample fluorescence;instant bright whitish yellow translucent to transparent cut fluorescence tha t changes to a paler bluish white with time;pale whitish yellow residual fluorescence. Report by: Craig Silva, Larry Resch H Hilwrp Alaska,LL(: SCU 24-15 C:ANRIG Hydrocarbon Show Report# 3 Operator: Hilcorp Alaska,LLC Well: SRU 24-15 API Number:50-133-20609-00-00 Field: Swanson River Date: 18-Apr-13 Rig: Doyon Arctic Fox Time: 3:52 AM County: Kenai Borough Depth Start End State: Alaska 10981' MD 11034' Mo Country: USA 10801'TVD 10851'TVD Averages Before During After Maximum Pixley Plot ROP(fph) 127 30 30 321 10000 _ WOB 1 6 5 1 12 RPM 75 55 55 69 loco Mud Weight 11 11 11 11 '- Chloride 31,000 31,000 31,000 31,000 w"amhnN Total Gas 149 117 85 285 Cl (ppm) 23,262 18,065 13,580 42,721 70 — --� —• — C2(ppm) 1,279 629 229 1,999 C3(ppm) 1,439 777 291 2,522 1 . 2 3 4 C4(ppm) 954 565 278 1,809 CI. r,.C, CU. C,/C5 C5(ppm) 447 278 145 916 Lithology Tuffaceous Sandstone/Sandstone=olive gray to light olive gray with many subtle secondary hues that include medium gray to medium light gray to greenish gray to yellowish gray to light brownish gray;many variegated greenish specks and streaks and greenstone origin rock fragments and minerals cause the overall olive gray coloration;abundant rock is blended high lightness value very light gray to white volcani: ash and darker carbonaceous or other clays and various minerals and rock fragments;very abundant vitri: and devitirified volcanic ash supporting matrix;very abundantly gradational to very sandy"ash-stone";very fine lower to coarse lower,but dominantly moderately well to well sorted from fine upper to medium lower equant grains,angular to rounded,subdiscoidal to spherical;rare to trace grain supported sandstone with intergrain weak silica and calcite cementation.Significant interbeddding with tuffaceous siltstone after 10996'. Cuttings Analysis Odor Sli-Mod Fluorescence Cut Fluorescence Residual Cul Stain Amounl`75-80% Type Instant AmountITrace Amount None-VFnt Distribution Even Intensity Strong Colorjvv fnt yel bm Color Yel brn Brn Intensity Mod-M Bri Color Br!YeIWh Residual Fluorescence Cut Color'Wh-Yet Intesity Bright Color'N vvFnt bm Colortwhitsh yel Oil Show Rating !2.81 Free Oil in Mud Comments Continued occasional petroleum odor in pits and on samples;no visible staining,but slight bluish sheen on some samples when first collected;no colored cuts in plain light;80%moderately bright whitish yellow to yellow sample fluorescence before 10996'then 0 to 15%after(due to absence of sands);instant bright whitish yellow translucent to transparent cut fluorescence that changes to a paler bluish white with time; pale whitish yellow residual fluorescence. Report by: Craig Silva, Larry Resch H tiilcorp Alaska,LLC SCU 24-15 CANRIG Hydrocarbon Show Report# 4 Operator: Hilcorp Alaska,LLC Well: SRU 24-15 _ API Number.50-133-20609-00-00 _ Field: Swanson River Date: 18-Apr-13 Rig: Doyon Arctic Fox Time: 6:45 AM County: Kenai Borough Depth Start [End State: Alaska 11036'MD 11111'MD Country: USA _ 10914'TVD 10984'TVD Averages Before During After Maximum Pixley Plot ROP(fph) 26 47 66 213 +0000 WOB 1 1 1 8 - RPM 45 51 75 58 1000 Mud Weight 11 11 11 11 e,: , — -- ti� Chloride 31,000 31,000 31,000 31,000 ,00i Total Gas 85 115 98 205 ___ Cl (ppm) 13,580 18,095 15,956 32,467 10 _- .— C2(ppm) 229 498 285 1,133 C3(ppm) 291 520 367 985 1 - 4 2 3 C4(ppm) 278 421 340 746 CI.' c,r, cl. c,2s C5(ppm) 145 207 205 336 Lithology Tuffaceous Sandstone/Sandstone=olive gray to light olive gray;many subtle secondary hues that include medium gray to medium light gray to greenish gray to yellowish gray to light brownish gray;common variegated greenish specks and streaks and greenstone origin rock fragments and minerals generate the overall olive gray coloration;incraeasing contrast of high lightness value very light gray to white volcanic ash and darker carbonaceous or other clays and various minerals and rock fragments;abundant vitric and devitirified volcanic ash supporting matrix;very abundantly gradational to very sandy"ash-stone";very fine lower to coarse lower,but dominantly moderately well to well sorted from fine upper to medium lower; equant grains,angular to rounded,subdiscoidal to spherical;rare grain supported sandstone with intergrain weak silica and calcite cementation. Cuttings Analysis Odor Moderate Fluorescence Cut Fluorescence Residual Cul Stain Amount 90% Type Instant Amount Trace Amount V Fnt-Fnt Distribution Even Intensity Strong Color vv fnt yel bm Color PI yel brn Intensity Mod-M Bri Color Bri YeIWh Residual Fluorescence Cut Color Whtsh Yel Intesity Bright Color N-vvFnt Brn • r Color whtsh yel Oil Show Rating 2.86 Free Oil in Mud Comments Continued occasional petroleum odor in pits and on samples;faint yellowish brown visible staining;slight bluish sheen on samples at first collection;no colored cuts in plain light;90%moderately bright whitish yellow to yellow sample fluorescence;instant bright whitish yellow translucent to transparent cut fluorescence that becomes a paler bluish white before evaporation of solvent;pale whitish yellow residual fluorescence. Report by: Craig Silva, Larry Resch H Hilcorp Alaxka•LLC SCU 24-15 CANRIG I h.,T ,.„.,..°.•°'. ,., Hydrocarbon Show Report# 5 Operator: Hilcorp Alaska,LLC Well: SRU 24-15 API Number:50-133-20609-00-00 Field: Swanson River Date: 18-Apr-13 Rig: Doyon Arctic Fox Time: 2:31 PM County: Kenai Borough Depth Start End State: Alaska 11115'Mo _ 11268'Mo Country: USA 10928'TVD 11072'TVD Averages Before During After Maximum Pixler Plot ROP(fph) 66 59 67 200 10000 WOB 1 7 11 26 RPM 56 47 65 62 1000 Mud Weight. 11 11 11 11 _— oicraeice� - Chloride 31,000 31,000 31,000 31,000 F 100 - Total Gas 98 74 74 237 a r Cl (ppm) 15,956 9,629 13,601_ 37,595 a 10 C2(ppm) 285 137 116 556 C3(ppm) 367 210 65 1,307 rlii:. :3 C4(ppm) 340 389 42 3,957 C,.C, C,; C,/C, C5(ppm) 205 3,459 34 4,397 Lithology Tuffaceous Sandstone=gray to light olive gray bulk color and many subtle secondary hues that include medium gray to medium light gray to greenish gray to yellowish gray to light brownish gray;many variegated greenish specks and streaks and greenstone origin rock fragments and minerals cause the overall olive gray coloration;grayish white to white,to very light gray with slight light bluish gray to light olive gray hues when examined under bright illuminator light;also note that large fractions of the rock are mix cf high lightness value very light gray to white volcanic ash and darker carbonaceous or other clays and various minerals and rock fragments;lower fine to upper very fine,some upper fine grain;well rounded to subrounded; spherical to subdiscoidal;well sorted;very soft to slighly mushy, poorly consolidated;non to very slightly calcareous in part;very ashy,tuffaceous, argillaceous matrix;difficult to distinguish between an arenaceous"ash-stone”and ashy sandstone; Cuttings Analysis Odor Sli-Mod Fluorescence Cut Fluorescence Residual Cul Stain Amount 60-90%/<10°, Type fast-burst Amount None-Trace Amount None-VFnt Distribution Sptty-Scttrd Intensity modstrnc Color No-vvfnt yelbrn Color vPI yelbm Intensity PI-Mod _ Color bri yelwh Residual Fluorescence Cut ColorieI-wh yel I Intesity Mod-Mod Bri Color'No-vvFntbrn __ Color whtsh yel Oil Show Rating 2.78->1.64 _Free Oil in Mud Comments slightly silty in part;dominant translucent and transparent quartz grains with abundant volcanic glass grairs and shards;minor dark gray,grayish black,greenstone,reddish orange to orange lithic grains and mafic minerals;no visible porosity;trace yellowish brown oil stain,locally 10-20%bitumen or dead oil stain;very slight petroleum odor;90-80%yellow to yellowish orange sample fluorescence,decreases to 0-10%below 11170'; instant strong bluish milky white burst cut with quick developing bluish white streamers;well dispursed light milky to yellow fluorescent ring;no visible residue ring. Report by: Craig Silva, Larry Resch II uileorp Alaska,LLC SCU 24-15 CANRIG Hydrocarbon Show Report# 6 Operator: Hilcorp Alaska,LLC Well: SRU 24-15 API Number:50-133-20609-00-00 Field: Swanson River Date: 18-Apr-13 Rig: Doyon Arctic Fox Time: 5:52 PM County: Kenai Borough Depth IStart End State: Alaska i 11275' MD 11371' MD Country: USA 11079'TvD 11169'TvD Averages Before During After Maximum Pixler Plot ROP(fph) �_ 70 j 53 58 + 220 l0000 WOB 9 10 603 19 RPM 52 56 64 65 loco Mud Weight 11 11 11 11 Chloride 31,000 31,000 31,000 31,000 "' LLb7 --- - k. 100 .- Total Gas 74- 58 67 114 Cl (ppm) 13,601 9,984 12,285 22,086 10 � — C2(ppm) 116 142 156 355 C3(ppm) 65 102 65 273 1 • C4(ppm) 42 72 54 213 Cpl 2 3 4 . C163 C1iCl LtlLS C5(ppm) I 34 I 52 I 50 204 Lithology Tuffaceous Sandstone=gray to light olive gray bulk color and many subtle secondary hues that include medium gray to medium light gray to greenish gray to yellowish gray to light brownish gray;many variegated greenish specks and streaks and greenstone rock fragments and minerals cause the overall olive gray coloration;grayish white to white,to very light gray with slight light bluish gray to light olive gray hues when examined under bright illuminator light;also note that large fractions of the rock are mix of high lightness value very light gray to white volcanic ash and darker carbonaceous or other clays and various minerals and rock fragments;lower fine to upper very fine, some upper fine grain;well rounded to subrounded;spherical to subdiscoidal;well sorted;very soft to slighly mushy,poorly consolidated;non to very slightly calcareous in part;very ashy,tuffaceous,argillaceous matrix;difficult to distinguish between an arenaceous"ash-stone"and ashy sandstone;interbedded with siltstone Cuttings Analysis Odor Slight Fluorescence . Fluorescence Residual Cul Stain Amount 0-5%->60°o Type burst-inst Amount Trace Amount VFnt-none Distributionnone-scttrd Intensity strng-wk Color vvfnt yelbrn Color Yel bm-none Intensity`nonstrng Color bri wh Residual Fluorescence Cut Color no-whtyel Intesity pale Color No-vvfnt brn_ Color whtsh yel Oil Show Rating 1.57->2.71 Free Oil in Mud Comments in many local sections;dominant translucent and transparent quartz grains with abundant volcanic glass grains and shards;minor dark gray,grayish black,greenstone,reddish orange to orange lithic grains and mafic minerals;no visible porosity;very faint yellowish brown oil stain,locally spotty bitumen or dead oil stain;very slight petroleum odor;40-60%whitish yellow to yellow to yellowish orange sample fluorescence; instant strong bluish milky white burst cut with quick developing bluish white streamers;well dispursed ligt t _milky to yellow fluorescent ring;no visible residue ring. Report by: Craig Silva, Larry Resch II Hil orp Alaska,LU SCU 24-15 CANRIG Hydrocarbon Show Report# 7 Operator: Hilcorp Alaska,LLC Well: SRU 24-15 API Number:50-133-20609-00-00 Field: Swanson River Date: 18-Apr-13 _ Rig: Doyon Arctic Fox Time: 11:17 PM County: Kenai Borough Depth Start End State: Alaska 11433' MD 11545'MD Country: USA ; 11229'TVD 11336'TVD Averages _ Before During After Maximum Pixier Plot ROP(fph) 70 67 61 242 10000 WOB 9 16 17 17 - RPM 72 52 54 84 1000 Mud Weight 11 11 11 11 Chloride 31,000 31,000 31,000 31,000 "`r"7° 00r - y-c Total Gas 49 45 37 75 - = , Cl (ppm) 9,025 8,420 7,312 13,991 t0 _ — ---� C2(ppm) 83 76 16 247_ u* !1 __ - C3(ppm) 35 27 1 55 1 • C4(ppm) 42 9 - 52 C,.C, CI.C.4 C„rs C5(ppm) _ 56 8 -_ 37 Lithology Tuffaceous Sandstone/Sandstone=olive gray to light olive gray with medium gray to medium light gray, greenish gray,yellowish gray secondary hues;note variegated greenstone origin specks and streaks; abundant mottled very light gray to white volcanic ash with dark carbonaceous clays,black mafic minerals and grayish black lithic fragments;pervasive vitric and devitrified volcanic ash matrix;grades to very sand/ "ash-stone";moderately well sorted from fine lower to medium upper;equant grains,angular to rounded, subdiscoidal to spherical;trace grain supported sandstone with weak silica and calcite cement. Note no significant show characteristics after 11423'and other lithologies(tuffaceous siltstone,volcanic ash,very carbonaceous claystone)dominate after 11450'. Cuttings Analysis Odor 'None _Fluorescence Cut Fluorescence Residual Cut Stain AmounllO to<5% Type fast Amount none-trace Amount None Distribution None Intensity vw-mod Color no-vvfntyelbrn Color None Intensity None-v wk Color bri yelwh Residual Fluorescence Cut Color none-vplyel Intesity pale Color None Colortwhtsh yel _Oil Show Rating 0.86->(Trace 2.78) _Free Oil in Mud Comments Only trace shows throughout this interval,rare petroleum odor,no visible staining,no plain cut,rare slight bluish sheen;nearly all of the interval has no sample fluorescence and no cuts,but trace thin zones with 15- 20%pale-marginally bright yellow sample fluorescence and instant moderately bright to very bright yellowish white to white translucent to transparent cut fluorescence that is bluish white to slightly milkier white with time,and also bright to very bright-v bri milky whitish yellow residual ring fluorescence,no residual cut in plain light. Report by: Craig Silva, Larry Resch H Hilcorp Alaska,LLC SCU 24-15 6 DAILY REPORTS 52 CANRIG HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANIRIG REPORT FOR:M.Leslie J.Grubb DATE: Mar 16,2013 DEPTH 766 PRESENT OPERATION: Drilling TIME:24:00 YESTERDAY 72 24 HOUR FOOTAGE 694 CASING INFORMATION 16"Conductor @ 72' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 265 0.87 309.13 264.99 SURVEY DATA 337 1.14 308.65 336.98 452 1.09 255.40 451.96 576 2.12 261.51 575.91 694 3.11 269.30 693.79 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 13.50 HCC MXL-1X 5196774 1x14,3x16 72 694 8.52 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 1443.4 @ 74 1.7 @ 153 111.8 118.7 FT/HR SURFACE TORQUE 6317 @ 167 1122 @ 279 2352.2 Sliding AMPS WEIGHT ON BIT 19 @ 223 0.3 @ 310 6.7 8.0 KLBS ROTARY RPM 88 @ 606 31 @ 79 50.2 Sliding RPM PUMP PRESSURE 2539 @ 679 220 @ 157 1556.2 2358.0 PSI DRILLING FLUIDS REPORT DEPTH 625/625 TVD MW 10.1 VIS 205 PV 42 YP 55 Gels 35/70/82 FL 8.5 CL- 500 FC 2 SOL 8.8 SD 1.0 OIL 0 MBT 22.5 pH 8.0 Ca+ 20 Alk 0 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 12 @ 733 0 @ 318 1.5 TRIP GAS CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 2493 @ 733 61 @ 318 311.8 CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND 5 PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continuing rig up operations.Pick up from pipe shed,make up,rack back in derrick and drift 25 joints total 5"HWDP(plus jars)and 80 joints total 5"drill pipe.Clear and clean rig floor.Rig down spinners.Move 13.5"bit,TIW valve,dart valve,dog collar and collar slips to rig floor via the beaver slide.Insulate high pressure mud line.Check sensators.Pick up,make up and run in initial drill-out BHA(13.5"bit,motor,stabilizer,two NM pony DAILY flex collars,crossover,1 stand HWDP)and tag up at 72'(base of conductor).Stand back in-string stand of HWDP.Pick up and make up MWD ACTIVITY collar and one stand of HWDP.Flood conductor using hole fill pump.Tighten bolts on riser nipple.Break circulation and test high pressure mud SUMMARY lines to 2000psi.Wash through 16"conductor shoe at 72'and Spud Well(at 10:44 Hours).Drill ahead with 13.5"bit from 72'to 370'.Circulate bottoms up and continue to circulate and clean hole(additional 1500 strokes).Monitor well.Pull out of hole on 5 stand wiper trip from 370'to 70'. Make up and run-in completed final lower directional assembly(bit,motor,NM stabilizer,pony NM flex collar,MWD,UP,NM filter sub,2 NM flex collars,crossover)to 137'.Continue running in with 5"HWDP and jars to 321'.Break circulation and wash down stand of 5"HWDP from 321'to 370'.Continue drilling ahead from 370'to 766'. CANRIG PERSONNEL ON BOARD: 2 DAILY COST: 2460 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CAINIRIG REPORT FOR:M Leslie J.Grubb DATE: Mar 17,2013 DEPTH 2253 PRESENT OPERATION: Drilling TIME:24:00 YESTERDAY 766 24 HOUR FOOTAGE 1487 CASING INFORMATION 16"Conductor @ 72' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 694 3.11 269.30 693.79 1064 4.69 266.10 1062.68 SURVEY DATA 1440 4.45 269.58 1437.47 1823 5.42 260.50 1818.93 2264 4.43 259.81 2258.28 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 13.50 HCC MXL-1X 5196774 1x14,3x16 72 2181 20.21 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 799.3 @ 1136 4.8 @ 1241 155.3 143.8 FT/HR SURFACE TORQUE 6928 @ 1943 1444 @ 876 4035.8 4568.1 AMPS WEIGHT ON BIT 24 @ 1159 0.3 @ 866 13.4 15.88 KLBS ROTARY RPM 97 @ 2179 72 @ 1396 81.1 81.1 RPM PUMP PRESSURE 2636 @ 2252 1440 @ 1947 2366.6 2502.1 PSI DRILLING FLUIDS REPORT DEPTH 2182/2176 TVD MW 10.25 VIS 112 PV 38 YP 40 Gels 24/53/82 FL 8.5 CL- 400 FC 2 SOL 10.8 SD 0.80 OIL 0 MBT 22.5 pH 8.3 Ca+ 20 Alk .01 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 126 @ 1484 0 @ 1447 31.8 TRIP GAS CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 25140 @ 1484 63 @ 1447 6360.1 CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND 22 PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Drill ahead from 766'to 2061'.Circulate bottom up and continue to circulate and condition hole until shaker screens clean up(additional 9500 DAILY strokes).Pull out of hole from 2061'to 291'on wiper trip.Observe tight spots at 1585'and 1212'on way out.Service top drive and grease ACTIVITY crown.Run back in hole from 291'to 1998'.Kelly up,break circulation and wash down from 1998'to bottom at 2061'.Continue circulating while SUMMARY prepping to re-calibrate MWD block height sensor.No recordable wiper gas.Perform block height calibration.Continue drilling ahead from 2061' to 2253'. CANRIG PERSONNEL ON BOARD: 2 _DAILY COST: 2460 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:M.Leslie J.Grubb DATE: Mar 18,2013 DEPTH 3030 PRESENT OPERATION: Preparing to run surface casing TIME:24:00 YESTERDAY 2253 24 HOUR FOOTAGE 777 CASING INFORMATION 16"Conductor @ 72' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2264 4.43 259.81 2258.28 SURVEY DATA 2390 3.55 259.04 2383.97 2643 1.46 250.52 2636.75 2768 0.15 353.19 2761.74 2982 0.13 176.94 2975.74 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 13.50 HCC MXL-1 X 5196774 1x14,3x16 72 3030 2958 27.31 1-1-WT-A-E-I-NO-TD Surface casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 402.4 @ 2366 2.0 @ 2944 126.9 91.7 FT/HR SURFACE TORQUE 8725 @ 2353 639 @ 2457 3942.3 3473.0 AMPS WEIGHT ON BIT 29 @ 2823 2 @ 3008 16.5 15.9 KLBS ROTARY RPM 94 @ 2622 1 @ 2568 67.3 83.0 RPM PUMP PRESSURE 2619 @ 2498 1567 @ 2256 2138.8 2424.0 PSI DRILLING FLUIDS REPORT DEPTH 3030/3024 TVD MW 10.0 VIS 52 PV 22 YP 19 Gels 7/19/24 FL 8.3 CL- 500 FC 2 SOL 9.8 SD 0.50 OIL 0 MBT 17.5 pH 8.0 Ca+ 20 Alk 0 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 99 @ 2581 12 @ 2998 46.8 TRIP GAS CUTTING GAS @ @ WIPER GAS 79 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 19896 @ 2581 2485 @ 2998 9400.8 CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue drilling ahead from 2253'to surface casing point at 3030'.Circulate bottoms up and continue to circulate and condition until the hole has "cleaned up"as per the mud engineer.Pull out of hole on wiper trip from 3030'to 1715'.Pull tight at 2026'on way out.Run back in hole from DAILY 1715'to 3007'.Work through tight spot at 2120'on way in.Wash down last single from 3007'to bottom at 3030'.Circulate bottoms up.Record 79 ACTIVITY units of wiper trip gas.Build and pump around high viscosity sweep.Break circulation(while pumping around sweep)to also drop a carbide. SUMMARY Continue to circulate around sweep and carbide,but hole volume indicators by each method are inconclusive.Build and pump around nut plug sweep.Hole volume measurements are still inconclusive.Cease pumping.Pull out of hole from 3030'to top of 5"HWDP at 927'.Monitor well.Pull and rack back HWDP and jars(13 stands)to 137'.Pull,break,inspect,lay down and off load directional assembly.Grade bit.Clear and clean rig floor.Prep for running surface casing. CANRIG PERSONNEL ON BOARD: 2 _DAILY COST: 2460 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:R.Pederson J.Grubb DATE: Mar 19,2013 DEPTH 3030 PRESENT OPERATION: Preparing to install pack-off after cementing surface casing TIME:24:00 YESTERDAY 3030 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 3030(Projection) 0.13 176.94 2975.74 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 @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 3030/3023 TVD MW 10.0 VIS 53 PV 20 YP 17 Gels 10/27/33 FL 9.8 CL- 800 FC 2 SOL 9.6 SD 0 OIL 0 MBT 21.5 pH 9.2 Ca+ 25 Alk 0.25 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 10 @ Circ before cmt job 0 @ Circ before cmt job TRIP GAS 10 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Remove directional tools from pipe shed and unneeded tools from rig floor.Pick up single,break head pin from full-open safety valve and make up wear bushing running tool.Pull wear bushing.Prep and rig up to run 10 3/4"casing.Lay down short 5"elevators and bails.Pick up casing long bails.Make up full-open safety valve to 10 3/4"crossover.Lay down drill pipe make-up tongs.Upload(via beaver slide)false rotary table,dog collar,elevators and slips to rig floor.Rig up Weatherford casing-running equipment.Rig up casing tongs.Rig up fill line to pits.Hold pre-job safety and operations meeting on procedures for running surface casing.Pick up,BakerLoc threads,make up and run in 10 3/4"shoe assembly to 125'. Install stop ring and bow spring centralizer on#1 and#2 joints.Fill float joints and ensure proper operation of float equipment.Continue running in hole with 10 3/4"surface casing from 125'to 2994'.On way in with casing,install 1 bow-spring centralizer on every even joint,fill each joint on the fly and top off every 10 joints to ensure balanced displacement.Pick up and make up pup and hanger to landing joint.Remove false table.Land hanger at 3023.48'.Note up weight 145K and down weight 120K at time of landing hanger.Make up cementing head(with plugs pre-loaded)and cement hose to landing joint.Break circulation,fill casing and begin circulating and conditioning mud for cement job.Reciprocate pipe while circulating.Rig down and lay down Weatherford casing-running equipment.Clean rig floor.While circulating,accidentally transfer Mud Push fluid DAILY into active mud system.Continue circulating and reciprocating while waiting for new Mud Push product to arrive from town.Prep cellar for later ACTIVITY nipple down of surface equipment.Hold pre-job meeting with Schlumberger cementers and all third-party hands on cement job procedures. SUMMARY Schlumberger begins batching up cement and primes cement pumps.SLB pumps ahead 5 bbls of water(independent of rig)to fill cementing lines and pressure test for 3 minutes each to 1000psi Low and 3000psi High.Pump 40 bbls of 11.0ppg Mud Push II at 6.5bpm with the rig pumps and then shut down.Switch over and line up to SLB cementing lines.SLB finishes batching cement and drops bottom plug.Begin pumping cement, reciprocating 2 times every minute,after verifying plug drop.Pump 216 bbls(493 sacks)of 12.0 ppg Class A lead cement(at 5.5 bpm)and follow with 53 bbls(244 sacks)of 15.4ppg tail cement(at 4.0 bpm).SLB drops top plug,verifies plug drop and pumps ahead 5 bbls water before switching over and lining up to rig pumps.Using rig pumps,chase and displace cement(230 bbls away at 5.6bpm/750psi,250 bbls away at 5.6bpm/900psi, 260 bbls away at 2.0bpm/500psi)with 277.5 bbls of 10.0 ppg spud mud.Begin diverting all returns to cellar box(starting at 22:20 hrs).Did not bump plug.Reached 800psi at close of pumping.Hold pressure at 700psi for 3 minutes after shutting down pumps.Cement in place(at 22:50 hrs).Bleed off and observe floats holding.Note 0.75 bbls flow-back to cementing truck after maximum pressure reached.Obtained 2 samples of cement returns prior to final pressure and 2 samples from mixing tub.Pumped 30%excess on both lead and tail cement and had full returns throughout the job.Blow down cement lines back to truck.Break,remove and lay down cementing head and associated equipment.Start flushing surface lines, cellar and stack.Release Schlumberger.Blow down mud lines to rig.Back out and pull landing joint.Position pack-off for installation.Continue cleaning cellar. CANRIG PERSONNEL ON BOARD: 2 _DAILY COST: 2460 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 OkNRIG REPORT FOR:R.Pederson J.Grubb DATE: Mar 20,2013 DEPTH 3030 PRESENT OPERATION: Preparing to test BOPE TIME:24:00 YESTERDAY 3030 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3023' 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 @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 3030/3024 TVD MW 10.05 VIS 55 PV 20 YP 20 Gels 18 FL 9.9 CL- 750 FC 2 SOL 9.6 SD 1.00 OIL 0 MBT 21.5 pH 9.0 Ca+ 50 Alk 0 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) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Wash bowl in casing head.Make up landing joint to pack-off running tool.Position and land pack-off in casing head.Run in lower lock-down sleeve.Pull and back out landing joint.Lay down pack-off running tool.Blow down full open safety valve and 10 3/4"crossover.Continue cleaning out cellar.Clean surface equipment in pits.Begin nipple down procedures.Begin cleaning pits.Break down and remove hole fill line and jet line. Remove accumulator lines from annular and knife valve.Remove riser nipple,knife valve,24"diverter line,21 E"annular preventer,diverter spool, 5'spool and double-studded adapter flange.Begin changing out liners on all three mud pumps from 6"to 5".Nipple-up wellhead as per Cameron DAILY Services.Inject plastic packing.Test pack-off void to 3000psi for 30 minutes.Nipple up all BOPE.Install 18"spool,11"annular preventer,torque ACTIVITY cap and locking pins inside the annular preventer and double gate rams.Load mud cross and single gate rams in cellar and continue BOPE nipple- SUMMARY up.Install kill line and choke hose.Open top and bottom ram doors and clean out ram cavities.Finish cleaning out pits.Tighten flanges on choke and kill lines.Change out bottom rams to 5"solid-body.Remove from annular preventer an improvised seat installation guide tool("potato masher")made up on 4"joint.Install riser pipe and flow line.Break and lay down single for"potato masher".Change out elevators.Finish cleaning pits and changing out mud pump liners.Install drip pan,hole fill line and flow line jets.Off Load all tools on rig floor.Check all lines.Rig up to test BOPE.Break out and lay down crossover for TIW valve.Make up rocket launcher to top drive and torque up for testing.Function test BOPS.Make up test plug and test joint. CANRIG PERSONNEL ON BOARD: 2 _DAILY COST: 2460 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANIRIG REPORT FOR:R.Pederson J.Grubb DATE: Mar 21,2013 DEPTH 3030 PRESENT OPERATION:Troubleshooting top drive failure TIME:24:00 YESTERDAY 3030 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3023' 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 2RR 9.875 Smith XR+ PX5266 1x12,3x16 3030 0 0.00 In Hole 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 3030/3024 TVD MW 10.0 VIS 55 PV 20 YP 18 Gels 11/27/34 FL 9.9 CL- 750 FC 2 SOL 9.6 SD 1.00 OIL 0 MBT 21.5 pH 9.0 Ca+ 50 Alk 0 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 1 @ Inside casing 0 @ 0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND 0 PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Pull test joint.Break and lay down test plug.Make up and torque up test joint with 12'pup,two 5'pups,ported sub,full-open safety valve and dart valve.Make up test plug.Run in hole test joint and test plug.Fill stack with fresh water.Rig up test equipment.Test annular preventer to 250psi Low/2500psi High for 10minutes each.Test all other BOPE(upper pipe rams,lower pipe rams,blind rams,HCR choke,HCR kill,manual choke, manual kill,3 1/8"Demco on kill,upper IBOP,lower IBOP,TIW valve,dart valve,choke manifold valves 1-15)to 250psi Low/4000psi High for DAILY 10minutes each.Perform accumulator drawdown test.Tighten flange on choke line.Lay down BOP test equipment.Break off TIW valve and dart ACTIVITY valve from the test joint.Blow down kill line and choke line.Put steam on HCR choke line and then blow down.Install wear ring and run-in SUMMARY lockdowns.Lube rig.Pick up,make up,and run in hole"dumb iron"drill-out assembly as per the Baker directional driller.Continue in hole,picking up and making up singles of 5"drill pipe out of the pipe shed.Tag top of cement at 2894'.Make up top drive and break circulation.Circulate and condition mud.Drill from 2894'to 2909'.Circulate bottoms up.Hold pre-job meeting on procedures and safety for casing test.Rig up to test surface casing.Test surface casing to 1500psi for 30 minutes.Rig down test equipment and break down kill line.Resume drilling on cement.Drill cement from 2909'to 2931'.Pick up to make a connection and top drive generator ceased running.Troubleshoot top drive failure. CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:R.Pederson J.Grubb DATE: Mar 22,2013 DEPTH 3247 PRESENT OPERATION: Running in hole and servicing rig TIME:24:00 YESTERDAY 3030 24 HOUR FOOTAGE 217 CASING INFORMATION 10 3/4"@ 3023' 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 2RR 9.875 Smith XR+ PX5266 1x12,3x16 3030 3247 217 6.03 1-1-WT-A-E-I-NO-BHA Pick up directional assy DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 135.6 @ 3186 3.7 @ 3187 44.5 22.8 FT/HR SURFACE TORQUE 6451 @ 3195 2945 @ 3175 4093.1 4405.0 AMPS WEIGHT ON BIT 25 @ 3155 9 @ 3032 16.3 13.8 KLBS ROTARY RPM 91 @ 3100 57 @ 3054 81.2 84.0 RPM PUMP PRESSURE 776 @ 3174 294 @ 3044 614.6 727.0 PSI DRILLING FLUIDS REPORT DEPTH 3247/3241 TVD MW 11.6 VIS 43 PV 16 YP 22 Gels 6/9/11 FL 5.8 CL- 31000 FC 1 SOL 12.7 SD 0.10 OIL 0 MBT 2.5 pH 9.2 Ca+ 680 Alk 0.05 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 52 @ 3230 0 @ 3031 9.7 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 10678 @ 3230 169 @ 3031 1946.5 CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Siltstone,Tuffaceous Claystone,Tuffaceous Sandstone,Sand/Sandstone.Minor Coal/Carbonaceous Shale, Conglomeratic Sand/Conglomerate PRESENT TUFFACEOUS CLAYSTONE TUFFACEOUS SILTSTONE LITHOLOGY Continue to troubleshoot top drive failure and discover air in fuel line.Discover that hole depth is wrong and adjust deeper,from 2931'to 2962'. Continue drilling out remaining shoe track(cement,shoe at 3023',rathole)from 2962'to 3030'.Drill 20'of new hole from 3030'to 3050'.Circulate bottoms up.Displace 10.0ppg Spud Mud with 11.5ppg/6%KCL/PHPA EZ-MUD.Obtain clean 11.5ppg returns.Stand back one stand of drill pipe to 2993'.Prep for F.I.T.Make up TIW valve,head pin,tee,sensator,chicksan,Lo-Torque valve,cement line).Perform F.I.T.with injection pump. DAILY Test to 13.5ppg EMW(315psi).Rig down test equipment.Pick up and make up first stand from derrick and wash down drill string from 2993'to ACTIVITY bottom at 3034'.Drill from 3030'to 3247'.Circulate bottoms up and continue circulating until hole is clean.Pull out of hole from 3247'to top of SUMMARY HWDP at 851'.Pull and rack back 5"HWDP,jars,and flex collars to surface.Break and lay down bit sub and bit.Grade bit.Pick up,make up and run in hole directional tools(9 7/8"PDC bit,motor,NM stabilizer,2 pony flex collars,MWD,UP,NM filter sub,2 flex collars)and first stand of 5" HWDP to 198'.Perform shallow hole test on MWD function.Test successful.Continue running in hole with 5"HWDP(and jars)from 198'to 927'. Prep for picking up 5"drill pipe singles from pipe shed.Pick up,make up and run in hole 5"single joints of drill pipe out of the pipe shed from 927' to 2878'. CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT CANRAG SRU 24-15 REPORT FOR:R.Pederson J.Grubb DATE: Mar 23,2013 DEPTH 4652 PRESENT OPERATION: Drilling TIME:24:00 YESTERDAY 3247 24 HOUR FOOTAGE 1405 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2982 0.13 176.94 2975.74 SURVEY DATA 3392 0.50 128.66 3385.73 3771 0.69 133.99 3764.71 4275 0.68 146.73 4268.68 4654 0.58 023.30 4647.66 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 9.875 HCC HC604Z 71443414 6x13 0.7777 1405 12.72 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 837.6 @ 3296 1.5 @ 4648 139.2 95.2 FT/HR SURFACE TORQUE 11114 @ 4186 1804 @ 3977 5012.7 5244.0 AMPS WEIGHT ON BIT 20 @ 4464 0.3 @ 3576 6.1 8.1 KLBS ROTARY RPM 86 @ 3808 50 @ 4186 64.7 72.0 RPM PUMP PRESSURE 3034 @ 4186 1139 @ 3324 2231.4 2611.0 PSI DRILLING FLUIDS REPORT DEPTH 4652/4646 TVD MW 12.00 VIS 47 PV 19 YP 21 Gels 5/7/9 FL 4.8 CL- 28000 FC 1 SOL 15.0 SD 0.15 OIL 0 MBT 3.5 pH 9.2 Ca+ 240 Alk 0.40 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 285 @ 3809.00000 3 @ 4240.00000 60.1 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 54767 @ 3809.00000 676 @ 4240 11977.2 CONNECTION GAS HIGH ETHANE(C-2) 52 @ 4614.00000 1 @ 4630 0.6 CONNECTION GAS:AVG PROPANE(C-3) 0 @ 0 @ CONNECTION GAS:CURRENT BUTANE(C-4) 0 @ 0 @ CURRENT AVG BACKGROUND 18 PENTANE(C-5) 0 @ 0 @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Claystone,Tuffaceous Siltstone,Tuffaceous Sandstone,Sand/Sandstone,Conglomeratic Sand/Conglomerate.Minor Volcanic Ash,Coal/Carbonaceous Shale,Calcareous Tuff. PRESENT E,.TUFFACEOUS CLAYSTONE--E.TUFFACEOUS SILTSTONE---. LITHOLOGY DAILY Fill pipe at 2878'.Move spinner hawks to offside drillerils side.Grease top drive,blocks,wash pipe and drawworks.Run in hole with 5"drill ACTIVITY pipe from 2878'to 3070'.Wash and ream through float collar at 2939'and casing shoe at 3023'.Wash in hole from 3070'to 3247',performing SUMMARY Gamma Log mad pass.Continue drilling ahead from 3247'to 4652'.Begin building mud weight from 11.6ppg(after 3830')to 12.5ppg(12.0 at report time). CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:R.Pederson J.Grubb DATE: Mar 24,2013 DEPTH 6040 PRESENT OPERATION: Drilling TIME:24:00 YESTERDAY 4652 24 HOUR FOOTAGE 1388 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4654 0.58 023.30 4647.66 SURVEY DATA 4970 0.28 038.70 4963.65 5349 0.31 059.05 5342.65 5727 0.52 300.78 5720.64 6106 0.45 334.23 6099.62 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 9.875 HCC HC604Z 7143414 6x13 3247 2793 25.05 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 896.8 @ 4911 1.8 @ 4846 156.8 43.7 FT/HR SURFACE TORQUE 11887 @ 5069 2971 @ 5169 6356.4 6652.0 AMPS WEIGHT ON BIT 24 @ 4735 2 @ 4775 13.5 12.3 KLBS ROTARY RPM 87 @ 5904 57 @ 4975 72.5 74.0 RPM PUMP PRESSURE 3348 @ 6039 2228 @ 4711 2917.5 3268.0 PSI DRILLING FLUIDS REPORT DEPTH 6045/6039 TVD MW 12.35 VIS 48 PV 21 YP 19 Gels 6/11/14 FL 5.0 CL- 32000 FC 1 SOL 15.9 SD 0.25 OIL 0 MBT 4.5 pH 9.0 Ca+ 200 Alk 0.10 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 804 @ 5838 2 @ 5297 129.6 TRIP GAS CUTTING GAS @ @ WIPER GAS 75 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 160359 @ 5838 524 @ 5297 25520.0 CONNECTION GAS HIGH ETHANE(C-2) 355 @ 5838 0 @ 36.8 CONNECTION GAS:AVG PROPANE(C-3) 58 @ 5838 0 @ 5.2 CONNECTION GAS:CURRENT BUTANE(C-4) 0 @ 0 @ 0.0 CURRENT AVG BACKGROUND 37 PENTANE(C-5) 0 @ 0 @ 0.0 HYDROCARBON SHOWS NO OIL INDICATORS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Claystone,Tuffaceous Siltstone,Tuffaceous Sandstone,Sand/Sandstone,Coal/Carbonaceous Shale,Conglomeratic Sand/Conglomerate,Volcanic Ash.Minor Calcareous Tuff. PRESENT TUFFACEOUS CLAYSTONE TUFFACEOUS SILTSTONE LITHOLOGY Continue drilling ahead from 4652'to 4774'.Circulate bottoms up.Circulate around Hi-Vis sweep and circulate until shakers are clean.Monitor DAILY well.Pump dry job.Pull out of hole from 4774'to 3073'on wiper trip.Record tight spots on way out,pulling 30-50K over at 4350',4295'-4225', ACTIVITY 4161',4117',4063'-4042',3992'-3985',3925',3668',3587'-3584',3565-3560',3545'-3540',3992',3392E],3188'-3182',3166'.Monitor well.Run SUMMARY back in hole from 3073'to 4713'.Kelly up and wash down from 4713'to bottom at 4774'.Pump around Hi-Vis sweep.Record 75 units of wiper gas.Continue drilling ahead from 4774'to 6040'. CANRIG PERSONNEL ON BOARD: 4 _DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:R.Pederson J.Grubb DATE: Mar 25,2013 DEPTH 6604 PRESENT OPERATION: Drilling TIME: 24:00 YESTERDAY 6040 24 HOUR FOOTAGE 564 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6106 0.45 334.23 6099.62 SURVEY DATA 6232 0.43 302.79 6225.62 6359 0.44 345.46 6352.62 6485 0.29 346.98 6478.61 6611 0.35 309.91 6604.61 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 9.875 HCC HC604Z 7143414 6x13 3247 3257 32.01 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 428.4 @ 6489 2.7 @ 6085 126.4 121.7 FT/HR SURFACE TORQUE 10566 @ 6385 3969 @ 6549 6898.7 6647.0 AMPS WEIGHT ON BIT 31 @ 6085 4 @ 6302 14.7 18.0 KLBS ROTARY RPM 85 @ 6267 64 @ 6409 73.9 79.0 RPM PUMP PRESSURE 3423 @ 6334 1538 @ 6163 3134.6 3247.0 PSI DRILLING FLUIDS REPORT DEPTH 6604/6598 TVD MW 12.50 VIS 58 PV 26 YP 23 Gels 6/20/27 FL 4.7 CL- 33000 FC 1 SOL 17.1 SD 0.25 OIL 0 MBT 6.5 pH 9.4 Ca+ 380 Alk 0.30 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 788 @ 6075 18 @ 6485.00000 165.0 TRIP GAS CUTTING GAS @ @ WIPER GAS 517 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 156827 @ 6075 3671 @ 6485 32865.0 CONNECTION GAS HIGH ETHANE(C-2) 495 @ 6075 0 @ 81.4 CONNECTION GAS:AVG PROPANE(C-3) 78 @ 6075 0 @ 11.3 CONNECTION GAS:CURRENT BUTANE(C-4) 0 @ 0 @ 0.0 CURRENT AVG BACKGROUND 28 PENTANE(C-5) 0 @ 6604 0 @ 0.0 HYDROCARBON SHOWS NO OIL INDICATORS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Sandstone,Tuffaceous Claystone,Tuffaceous Siltstone,Volcanic Ash,Coal/Carbonaceous Shale,Conglomeratic Sand/Conglomerate,Sand/Sandstone.Minor Calcareous Tuff. PRESENT TUFFACEOUS SANDSTONE LITHOLOGY Continue drilling ahead from 6040'to 6289'.Circulate bottoms up.Circulate around Hi-Vis sweep and circulate until shakers are clean.Monitor DAILY well.Pump dry job.Pull out of hole from 6289'to 3066'on wiper trip.(Record 27 significant tight spots on way out of hole,pulling well over for ACTIVITY 193D total from 5960'to 3775').Monitor well.Slip and cut 100'of drill line.Service top drive,blocks and drawworks.Clear and clean rig floor. SUMMARY Run back in hole from 3066'to 6225'.(Record 29 significant tight spots on the way in the hole,working through 199'total from 3430'to 6119'). Kelly up and wash down from 6225'to bottom at 6289'.Pump around Hi-Vis sweep.Record 517 units of wiper gas.Continue drilling ahead from 6289'to 6604'. CANRIG PERSONNEL ON BOARD: 4 _DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT CAN SRU 24-15 RIG REPORT FOR:R.Pederson J.Greco DATE: Mar 26,2013 DEPTH 7551 PRESENT OPERATION: Drilling TIME: 24:00 YESTERDAY 6604 24 HOUR FOOTAGE 947 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6611 0.35 309.91 6604.61 SURVEY DATA 6864 0.22 319.76 6857.61 7117 0.39 322.88 7110.60 7369 0.30 342.33 7362.60 7560 1.43 275.49 7553.58 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 9.875 HCC HC604Z 7143414 6x13 3247 4304 50.41 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 338.8 @ 6614 1.8 @ 7468 72.5 51.0 FT/HR SURFACE TORQUE 12013 @ 6949 1 @ 7504 6656.9 6768.0 AMPS WEIGHT ON BIT 29 @ 6788 2 @ 7300 14.2 13.2 KLBS ROTARY RPM 84 @ 7403 44 @ 6958 68.0 63.0 RPM PUMP PRESSURE 3539 @ 7125 1810 @ 6797 3216.4 3472.0 PSI DRILLING FLUIDS REPORT DEPTH 7550 7544 TVD MW 12.6 VIS 58 PV 31 YP 17 Gels 5/8/11 FL 3.6 CL- 29000 FC 1 SOL 17.8 SD 0.10 OIL 0 MBT 7.0 pH 10.5 Ca+ 200 Alk 0.80 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 704 @ 7405 3 @ 6795 107.4 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 140016 @ 7405 712 @ 6795 21372.1 CONNECTION GAS HIGH ETHANE(C-2) 455 @ 7405 0 @ 42.0 CONNECTION GAS:AVG PROPANE(C-3) 68 @ 7405 0 @ 7.0 CONNECTION GAS:CURRENT BUTANE(C-4) 40 @ 7405 0 @ 0.4 CURRENT AVG BACKGROUND 28 PENTANE(C-5) 0 @ 0 @ 0.0 HYDROCARBON SHOWS NO OIL INDICATORS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Sandstone,Coal/Carbonaceous Material/Carbonaceous Shale,Volcanic Ash,Tuffaceous Claystone,Tuffaceous Siltstone. Minor Conglomeratic Sand/Conglomerate,Sand/Sandstone,Calcareous Tuff. PRESENT TUFFACEOUS SANDSTONE TUFFACEOUS SILTSTONE COAL LITHOLOGY DAILY ACTIVITY SUMMARY Continue drilling ahead from 6604'to 7551'. CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:J.Greco R.Pederson DATE: Mar 27,2013 DEPTH 7718 PRESENT OPERATION: Drilling TIME:24:00 YESTERDAY 7551 24 HOUR FOOTAGE 167 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7560 1.43 275.49 7553.58 SURVEY DATA 7627 2.06 267.82 7620.55 7690 2.07 266.24 7683.51 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 9.875 HCC HC604Z 7143414 6x13 3247 4471 55.94 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 109.1 @ 7609 5.4 @ 7589 48.7 56.4 FT/HR SURFACE TORQUE 10079 @ 7581 5053 @ 7580 5157.7 7659.0 AMPS WEIGHT ON BIT 35 @ 7558 1 @ 7618 22.9 1.7 KLBS ROTARY RPM 81 @ 7615 44 @ 7577 43.6 77.0 RPM PUMP PRESSURE 3512 @ 7615 2900 @ 7552 3318.0 3377.0 PSI DRILLING FLUIDS REPORT DEPTH 7718/7712 TVD MW 12.65 VIS 59 PV 30 YP 20 Gels 4/11/14 FL 4.0 CL- 32000 FC 1 SOL 17.6 SD 0.05 OIL 0 MBT 7.0 pH 9.9 Ca+ 200 Alk 1.00 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 321 @ 7564 27 @ 7554 86.5 TRIP GAS CUTTING GAS @ @ WIPER GAS 1454 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 64114 @ 7564 5524 @ 7554 17350.5 CONNECTION GAS HIGH ETHANE(C-2) 148 @ 7564 5 @ 7617 35.0 CONNECTION GAS:AVG PROPANE(C-3) 25 @ 7564 1 @ 7617 7.8 CONNECTION GAS:CURRENT BUTANE(C-4) 0 @ 0 @ 0.0 CURRENT AVG BACKGROUND 18 PENTANE(C-5) 0 @ 0 @ 0.0 HYDROCARBON SHOWS NO OIL INDICATORS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Sandstone,Tuffaceous Siltstone,Tuffaceous Claystone,Carbonaceous MaterialNery Carbonaceous Tuffaceous Siltstone -Claystone.Minor Coal/Carbonaceous Shale,Volcanic Ash,Sand/Sandstone. PRESENT TUFFACEOUS SILTSTONE TUFFACEOUS CLAYSTONE VERY CARBONACEOUS TUFFACEOUS CLAYSTONE LITHOLOGY Continue drilling ahead from 7551'to 7615'.Circulate bottoms up,working pipe.Prep for Wiper Trip.Pull out of hole from 7615'to 6983'.Pump 23 bbl/14.4ppg dry job.(Work tight spots at 7325'-7321',7195-7194',7182'-7179').Continue pulling out of hole from 6983'to 6607'.(Work tight DAILY spots at 6908'-6906',6749'-6741',6636'-6633',6614'-6610').Backream out of hole from 6983'to 6036'.Pump around Hi-Vis sweep.Pull out of ACTIVITY hole from 6036'to 4524'.Circulate out.Pull out of hole from 4524'to 4271'.Run back in hole to 4395'.Check for flow.Clear and clean rig floor. SUMMARY Hold pre-job meeting on procedures and safety for picking up drill pipe.Prep to pick up 5"drill pipe out of pipe shed.Pick up,make up and run in hole single joints of 5"drill pipe from 4395'to 7557',filling pipe when needed.(Work through tight spots at 4810'-4831',5467-5495',5580',5707', 5846',5855',5910',5974',7547'on way in).Kelly up on last stand in derrick and break circulation.Begin pumping around Hi-Vis sweep.Wash down from 7557'to bottom at 7615'Record 1454 units of wiper gas while washing down.Continue drilling ahead from 7615'to 7718'. CANRIG PERSONNEL ON BOARD:4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:J.Greco R.Pederson DATE: Mar 28,2013 DEPTH 8164 PRESENT OPERATION: Drilling TIME:24:00 YESTERDAY 7718 24 HOUR FOOTAGE 446 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7690 2.07 266.24 7683.51 SURVEY DATA 7816 3.89 265.64 7809.34 7943 5.18 261.26 7935.93 8069 7.38 265.47 8061.18 8132 9.09 265.42 8123.52 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 9.875 HCC HC604Z 7143414 6x13 3247 4917 72.94 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 269.0 @ 7949 1.1 @ 8133 41.4 21.3 FT/HR SURFACE TORQUE 11620 @ 7810 911 @ 7736 4189.6 7098.0 AMPS WEIGHT ON BIT 50 @ 7949 5 @ 8003 16.8 11.2 KLBS ROTARY RPM 102 @ 7901 1 @ 8064 42.5 79.0 RPM PUMP PRESSURE 3513 @ 8091 2176 @ 7747 3213.7 3431.0 PSI DRILLING FLUIDS REPORT DEPTH 8165/8156 TVD MW 12.85 VIS 56 PV 35 YP 17 Gels 4/8/11 FL 3.6 CL- 31000 FC 1 SOL 18.4 SD 0.10 OIL 0 MBT 6.0 pH 10.0 Ca+ 180 Alk 0.80 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 1811 @ 8075. 15 @ 7732 249.8 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 357235 @ 8075 3045 @ 7732 49637.3 CONNECTION GAS HIGH 2007 ETHANE(C-2) 2318 @ 8075 1 @ 7945 177.5 CONNECTION GAS:AVG 1335 PROPANE(C-3) 514 @ 8075 0 @ 7903 36.1 CONNECTION GAS:CURRENT 2007 BUTANE(C-4) 141 @ 8075 0 @ 8.9 CURRENT AVG BACKGROUND 38 PENTANE(C-5) 57 @ 8075 0 @ 2.6 HYDROCARBON Possible oil indicators at 7764'to 7796',but"Black Products"in mud system are probably a major factor since the Pixler Plot of the interval SHOWS indicates a Dry Gas regime. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 7764-7796 Tuffaceous sandstone;outwardly does not look like Max 1530;Avg Tuffaceous Sandstone:med gray,strng olive gry sec hues;fine either a good oil or good gas zone due to the volume of 706;Before/After Lo-Med U;mod w srtd;equant grs;full range shape and matrix ash,but the very high gases suggest better 22/31 rddness;"ash-stone"mtrx;sublithic-lithic aren;95%pl yel spl permeabilties. fluor,pale-mod brite whitish yel cut flor,whtish yel resid Major Tuffaceous Sandstone,Tuffaceous Siltstone,Tuffaceous Claystone,Volcanic Ash,Coal/Carbonaceous Shale,Carbonaceous LITHOLOGY MaterialNery Carbonaceous Tuffaceous Siltstone-Claystone.Minor Undifferentiated Sand/Sandstone,Conglomeratic Sand/Conglomerate, Calcareous Tuff. PRESENT COAL TUFFACEOUS SILTSTONE LITHOLOGY DAILY ACTIVITY SUMMARY Continue drilling ahead from 7718'to 8164'. CANRIG PERSONNEL ON BOARD:4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANIRIG REPORT FOR:J.Greco R.Pederson DATE: Mar 29,2013 DEPTH 8442 PRESENT OPERATION:Circulating prior to pulling out of hole TIME:24:00 YESTERDAY 8164 24 HOUR FOOTAGE 278 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8132 9.09 265.42 8123.52 SURVEY DATA 8195 10.37 266.93 8185.62 8258 12.11 269.04 8247.41 8322 13.13 269.74 8309.86 8386 14.75 270.89 8371.97 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 9.875 HCC HC604Z 7143414 6x13 3247 8442 5195 90.90 In Hole Trip for new bit DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 117.6 @ 8251 0.3 @ 8263 24.3 5.0 FT/HR SURFACE TORQUE 11302 @ 8188 45 @ 8184 2810.1 5869.0 AMPS WEIGHT ON BIT 49 @ 8263 1 @ 8361 18.6 9.9 KLBS ROTARY RPM 89 @ 8225 1 @ 8344 28.8 55.0 RPM PUMP PRESSURE 3540 @ 8321 2975 @ 8220 3318.0 3348.0 PSI DRILLING FLUIDS REPORT DEPTH 8442/8426 TVD MW 12.85 VIS 58 PV 37 YP 24 Gels 4/7/10 FL 3.6 CL- 33000 FC 1 SOL 18.2 SD 0.10 OIL 0.5 MBT 6.0 pH 9.7 Ca+ 120 Alk 0.60 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 195 @ 8166 9 @ 8288 40.5 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY 495 METHANE(C-1) 38949 @ 8166 2006 @ 8288 8043.6 CONNECTION GAS HIGH 859 ETHANE(C-2) 5504 @ 8372 0 @ 30.2 CONNECTION GAS:AVG 406 PROPANE(C-3) 30 @ 8410 0 @ 1.8 CONNECTION GAS:CURRENT 456 BUTANE(C-4) 0 @ 0 @ 0.0 CURRENT AVG BACKGROUND 27 PENTANE(C-5) 0 @ 0 @ 0.0 HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION Major Tuffaceous Sandstone,Tuffaceous Siltstone,Tuffaceous Claystone,Volcanic Ash,Coal/Carbonaceous Shale,Carbonaceous LITHOLOGY MaterialNery Carbonaceous Tuffaceous Siltstone-Claystone.Minor to Trace Undifferentiated Sand/Sandstone,Conglomeratic Sand/Conglomerate,Calcareous Tuff. PRESENT TUFFACEOUS SANDSTONE COAL/CARBONACEOUS MATERIAL LITHOLOGY DAILY ACTIVITY Continue drilling ahead from 8164'to 8442'.Circulate bottoms up and continue to circulate,clean and condition hole prior to bit SUMMARY trip. CANRIG PERSONNEL ON BOARD:4 _DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANIRIG REPORT FOR:R.Pederson J.Greco DATE: Mar 30,2013 DEPTH 8442 PRESENT OPERATION: Rebuilding mud volume after fluid loss events TIME:24:00 YESTERDAY 8442 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 8442(Projection) 14.75 270.89 8425.95 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 9.875 HCC HC604Z 7143414 6x13 3247 8442 5195 90.90 5-4-BT-A-X-I-CT-PR Unsatisfactory drill rates 4 9.875 HCC HC505XX 7212129 8x12 8442 In Hole 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 8442/8426 TVD MW 12.85 VIS 58 PV 37 YP 24 Gels 4/7/10 FL 3.6 CL- 33000 FC 2 SOL 18.2 SD 0.10 OIL 0.5 MBT 6.0 pH 9.7 Ca+ 120 Alk 0.60 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 16u @ reaming in at 3543 @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish circulating hole clean.Monitor well.Pull out of hole from 8442'to 7496'.Monitor well.Pump 30bbl/14.1 ppg dry job.Pull out of hole from 7496'to 4017'. (Pull through tight spots and wipe hole clean on way out at 7406',7329',7320',7315',7245',7180',7176',7180').Pump 20bbl dry job.Rig up to lay down 5" drill pipe.Pull out of hole breaking and laying down 5"drill pipe singles in pipe shed from 4017'to 990'.(Pull through tight spots and wipe hole clean on way out at 27 points on the way out).Continue pulling out of hole racking back in derrick,one stand of 5"drill pipe,5"HWDP and jars,and flex collars with filter sub. Clean out filter sub.Pull,break and lay down remaining bottom hole assembly(UP,MWD,2 pony flex collars,NM stabilizer,motor,bit).Clear and clean up rig floor.Pick up,make up and run in hole new directional bottom hole assembly(new bit,new motor,NM string stabilizer,2 pony compressive collars,new MWD, DAILY UP)to 73'.Continue running in hole with 14 stands of directional assembly components out of the derrick(NM filter sub,2 compressive flex collars,25 joints of ACTIVITY 5"HWDP with new set of jars)from 73'to 926'.Prep to pick up single joints out of the pipe shed.Continue running in hole,picking up and making up singles of SUMMARY 5"drill pipe,from 926'to tight spot at 3229'.Work through 3229'tight spot and several more tight spots to 3511'.Kelly up,till pipe and ream down from 3511'to 3543'.Zero gain-loss after filing pipe and monitor.No change in fluid levels.Kelly up and ream down from 3543'to 3574'with no gains or losses.Run in next two joints from 3574'to 3636'on elevators.Kelly up.Start up pumps(at 20:04 Hrs)and begin losing mud.(Losses appear to start 30 seconds before pumps are even kicked on).Hole is not packed off(no increase in pressure differential).Losses continue with pumps on and pumps off.Attempts to progressively fill hole from backside fail.Pull out of hole from 3636'to 3009'(just inside shoe).Losses continued while pulling out,but pumped 23bb1/50 ppb LCM pill before reaching shoe.Kelly up.Successfully halt losses and fill hole with hole fill pump and mud pump through kill line(at 3 bpm).(Note that 321 bbls were lost in first 77 minutes before stabilizing the hole).Quickly begin mixing 10.0ppg"emergency"mud and adding new fluid to the hole every 5 minutes.Keep hole full with trip tank while continuing to build replacement mud volume(to 600 bbls of 10ppg).Mud engineer's estimate of total losses is 620 bbls(at 24:00 Hrs). CANRIG PERSONNEL ON BOARD: 4 _DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT CANJ SRU 24-15 RAG REPORT FOR:J.Greco R.Pederson DATE: Mar 31,2013 DEPTH 8442 PRESENT OPERATION: Circulating at 7460'stabilizing mud system TIME:24:00 YESTERDAY 8442 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3023' 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 9.875 HCC HC505XX 7212129 8x12 8442 In Hole 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 8442/8426 TVD MW 11.3 VIS 67 PV 24 YP 26 Gels 7/17/22 FL 3.4 CL- 30000 FC 2 SOL 12.3 SD 0 OIL 0 MBT 3.5 pH 8.3 Ca+ 240 CCI 0 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 587 @ Circ at 7640 @ N/A TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND 470 PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue building 600 bbls of 10.Oppg mud.Keep hole filled out of the trip while building mud.Fluid loss rate of 1 bbl/min while building mud.Build 50 bbl LCM pill.Fill pipe before tripping in hole.Note fluid floss rate of 6 bbls/min.Run in hole with single joints from 3009'to 3478'.Pump 50 bbls of 50 lb/bbl LCM and spot at 3478'.Lose 74.5 bbls while spotting pill.Pull and rack back 1 stand of drill pipe.Run hole fill across the top of the trip tank.Note fluid loss rate of 15 bbls/hr.Build and condition an additional 200 bbls of mud.Continue monitoring loss rate with hole fill across trip tank.(Note 24 bbls required to keep hole filled while building and conditioning latest mud).Change out shakers screens to 80s.Work pipe while continuing to monitor loss rate at trip tank.Roll pumps to DAILY verify that mud lines and drill pipe are clear.Pump surface to surface at 3 bpm,(MW in:10.3,MW out:11.1).Circulate until 10.7ppg mud all the way around. ACTIVITY Gain/loss remained steady while circulating.Run in hole from with single joints from 3383'to 3984',working tight spots on way in.Break circulation at 3984' SUMMARY and pump 3000 strokes.Continue running in hole with stands of 5"drill pipe out of derrick from 3984'to 5268',working tight spots on way in.Displacement was as projected,with no additional fluid losses.Kelly up at 5268'.Break circulation and fill pipe.Begin circulating surface to surface at 3 bbls/min and build to 4.5 bbls/min.Circulate al the way around with no fluid losses.Circulate 11309 total strokes and record 106 units maximum gas.Continue running in hole from 5268'to 7460',filling pipe every 20 stands on way in,working through tights spots(5355'-5342',5462'-5484',5593',5686-5714',5800'-5810',6106-6114')and recording 250 to 300 units of background gas.Pipe displacement as projected,with no additional fluid losses.Kelly up and fill pipe.Circulate surface to surface (starting at 3 bbls/min and increasing to 4.1 bbls/min).Circulate 17712 total strokes and record 587 units maximum gas. CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:J.Greco R.Pederson DATE:Apr 01,2013 DEPTH 8580 PRESENT OPERATION: Drilling TIME:24:00 YESTERDAY 8442 24 HOUR FOOTAGE 138 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8386 14.75 270.89 8371.97 SURVEY DATA 8446 17.00 269.16 8429.68 8509 18.52 270.10 8489.68 8573 19.43 270.30 8550.20 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 9.875 HCC HC505XX 7212129 8x12 8442 138 4.55 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 129.3 @ 8517 0.4 @ 8558 39.4 14.4 FT/HR SURFACE TORQUE 9723 @ 8473 6239 @ 8525 2910.8 0.0 Slide AMPS WEIGHT ON BIT 29 @ 8558 1 @ 8473 10.9 11.6 KLBS ROTARY RPM 75 @ 8476 60 @ 8545 24.9 0.0 Slide RPM PUMP PRESSURE 3136 @ 8455 2156 @ 8515 2662.2 2408.0 PSI DRILLING FLUIDS REPORT DEPTH 8580/8557 TVD MW 12.0 VIS 52 PV 23 YP 19 Gels 5/12/16 FL 3.8 CL- 30000 FC 1 SOL 14.0 SD 0.75 OIL 0 MBT 3.5 pH 8.3 Ca+ 400 Alk 0 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 2468 @ 8561 321 @ 8458.00000 1014.3 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 487158 @ 8561 63913 @ 8458 200576.5 CONNECTION GAS HIGH 1630 ETHANE(C-2) 3013 @ 8559 166 @ 8458 968.5 CONNECTION GAS:AVG 1430 PROPANE(C-3) 630 @ 8561 30 @ 8443 216.3 CONNECTION GAS:CURRENT 1510 BUTANE(C-4) 180 @ 8561 20 @ 8497 69.3 CURRENT AVG BACKGROUND 1610 PENTANE(C-5) 107 @ 8556 1 @ 8461 43.5 HYDROCARBON SHOWS No oil indicators,but very high gases ranging from 1000 units to 2900 unit almost continuously. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Siltstone,Tuffaceous Claystone,Carbonaceous Tuffaceous Siltstone-Claystone.Minor Coal/Carbonaceous Shale,Carbonaceous Material,Tuffaceous Sandstone,Non-Tuffaceous Sandstone,Calcareous Tuff. PRESENT TUFFACEOUS SILTSTONE TUFFACEOUS CLAYSTONE LITHOLOGY Finish circulating at 7460'.Continue running in hole out of derrick from 7460'to 8090'.Kelly up and pump 2000 strokes,staging up from 3 to 4bpm.Note no additional fluid losses on displacement.Continue running in hole from 8090❑to 83770.Kelly up,break circulation and stage up pump output to 370gpm. Wash down from 8377:to 84190,backing off pumps to keep riser from running over.Record 450 units of background gas.Continue to condition mud,adding water at 10 bbls/hr with 10ppb LCM.Observed maximum 1751 units of gas while conditioning mud.Stage pumps up to 475gpm(2000psi,70%flow).Wash DAILY down from 8419'to bottom at 8442'.Check for flow.Screen up shakers 1 and 2 to 170/140 and shaker 3 to 200's.Screen down shakers to 80s.Stage pumps ACTIVITY up to 460gpm(2280psi,50%flow,10rpm).Continue reaming and working last stand while conditioning mud.Stage pump output up to 510gpm.Static mud SUMMARY weight in/out at 11.6/11.5+ppg.Continue reaming and working last stand while conditioning mud.Stage pump output up to 517gpm.Static mud weight in/out at 11.8/11.6+ppg.Continue reaming and working last stand while conditioning mud.Stage pump output up to 520m.Static mud weight in/out at 11.9+/11.9ppg.Pull 1 more stand out of hole to not lose angle on bottom while circulating.Continue working pipe.Achieve 11.9+mud weight all the way around.Note background gas increased to 1400 units while building mud weight.Observe maximum connection gas(from last stand pulled)of 2147 units. After achieving 12.2ppg mud,run back in hole from 8377'to 8439'.Kelly up and wash down from 8439'to 8442'.Continue drilling ahead from 8442'to 8580'. CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CAtsIRIG REPORT FOR:J.Greco,G.Leslie DATE:Apr 02,2013 DEPTH 9153 PRESENT OPERATION: Drilling TIME:24:00:00 YESTERDAY 8580 24 HOUR FOOTAGE 573 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8829 22.61 267.00 8788.85 SURVEY DATA 8888 22.92 263.76 8843.26 8950 22.80 263.31 8900.39 9014 22.90 262.87 8959.37 9077 22.85 263.05 9017.42 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 9.875 HCC HC505XX 7212129 8x12 8442 711 21.07 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 410.6 @ 9135. 0.8 @ 8893. 45.5 51.03 FT/HR SURFACE TORQUE 11084 @ 9071 5147 @ 8658 6037 8923 AMPS WEIGHT ON BIT 31 @ 8757 0 @ 8655 8.7 11.8 KLBS ROTARY RPM 86 @ 9135 55 @ 8919 52.5 83.0 RPM PUMP PRESSURE 2921 @ 8763 2019 @ 8657 2485.2 2539 PSI DRILLING FLUIDS REPORT DEPTH MW 12.0 VIS 48 PV 22 YP 15 Gels 4/6/8 FL 4.2 CL- 30000 FC 0.5 SOL 15.9 SD 0.5 OIL 0 MBT 4 pH 10.1 Ca+ 160 Alk 0 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 3253 @ 8629 395 @ 9136 1361.1 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 640894 @ 8629 63650 @ 9136 179530.6 CONNECTION GAS HIGH 1990 ETHANE(C-2) 4606 @ 8629 220 @ 9136 955.0 CONNECTION GAS:AVG 961 PROPANE(C-3) 945 @ 8629 64 @ 9136 209.1 CONNECTION GAS:CURRENT 490 BUTANE(C-4) 325 @ 8629 20 @ 9073 67.4 CURRENT AVG BACKGROUND 620 PENTANE(C-5) 180 @ 8622 0 @ 8926 27.2 HYDROCARBON SHOWS No oil indicators,high periods of gas over 1200 units with over 600 units continuously INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous Siltstone,Tuffaceous Sandstone,Tuffaceous Siltstone,Minor Coal,Carbonaceous Material,and Calcareous Tuff. PRESENT LITHOLOGY Tuffaceous Siltstone,Tuffaceous Sandstone,Tuffaceous Claystone DAILY ACTIVITY Continue drilling from 8580'to 8792'MD.Drill from 8792'to 9153'MD.20 PPB LCM in mud.Average loss rate from 12:00 to 18:00 was 7.1 bbls/hr. SUMMARY Average loss rate from 18:00 to 24:00 was 2.5 bbls/hr.Total losses from 12:00 to 24:00 were 66.3 bbls.Max gas observed 3421 units. CANRIG PERSONNEL ON BOARD: 4 _DAILY COST: 3260 REPORT BY: Tyler Willey HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:J.Greco,G.Leslie DATE:Apr 03,2013 DEPTH 9576 PRESENT OPERATION: Circulate Bottoms Up TIME:24:00:00 YESTERDAY 9152 24 HOUR FOOTAGE 424 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9205 22.66 263.11 9135.47 SURVEY DATA 9268 22.32 261.65 9193.68 9331 21.87 259.86 9252.05 9394 21.69 259.67 9310.55 9456 21.41 260.59 9368.22 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 9.875 HCC HC505XX 7212129 8x12 8442 9576 1134 36.63 in hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 203.8 @ 9287 0.2 @ 9397 42.5 25.6 FT/HR SURFACE TORQUE 10588 @ 9354 6801 @ 9173 6993.8 8427 AMPS WEIGHT ON BIT 31 @ 9392 0 @ 9549 11.1 20.9 KLBS ROTARY RPM 89 @ 9162 60 @ 9433 65.4 83 RPM PUMP PRESSURE 3093 @ 9557 2383 @ 9459 2674.8 2901 PSI DRILLING FLUIDS REPORT DEPTH 9576 MW 12.3 VIS 48 PV 25 YP 20 Gels 4/7/11 FL 3.5 CL- 29,000 FC 2 SOL 17 SD 0.5 OIL 0 MBT 3.5 pH 10.9 Ca+ 120 CCI 0 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 1258 @ 9400 36 @ 9533 465.6 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 205682 @ 9400 6874 @ 9524 75276.6 CONNECTION GAS HIGH 2100 ETHANE(C-2) 992 @ 9398 13 @ 9524 261.3 CONNECTION GAS:AVG 1685 PROPANE(C-3) 224 @ 9400 5 @ 9524 74.1 CONNECTION GAS:CURRENT 2100 BUTANE(C-4) 59 @ 9417 0 @ 9375 20.3 CURRENT AVG BACKGROUND 120 PENTANE(C-5) 23 @ 9390 0 @ 9435 2.0 HYDROCARBON SHOWS no oil shows. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous Sandstone,Tuffaceous Claystone,Tuffaceous Siltstone,Sand,Carbonaceous Material, PRESENT LITHOLOGY Tuffaceous Claystone,Tuffaceous Siltstone,Tuffaceous Sandstone DAILY ACTIVITY Continue drilling ahead from 9152'MD to 9513'MD.Circulate bottoms up.Perform FIT test to determine if hole can withstand a 12.8 ppg mud weight. SUMMARY Pressured up with injection pump and it settled at 75 psi,mud weight equivalent of 12.8 ppg,at 3630'which was zone of concern.Continue to drill ahead from 9513'MD to 9576'MD.Circulate bottoms up. CANRIG PERSONNEL ON BOARD: 4 _DAILY COST: 3260 REPORT BY: Tyler Willey HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:J.Greco M.Leslie DATE:Apr 04,2013 DEPTH 9576 PRESENT OPERATION: Preparing to pull out of hole laying down singles TIME:24:00 YESTERDAY 9576 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9456 21.41 260.59 9368.23 SURVEY DATA 9521 21.30 260.44 9428.76 9576(Projection) 21.30 260.44 9480.01 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 9.875 HCC HC505XX 7212129 8x12 8442 9576 1134 30.63 In Hole 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 9576/9480 TVD MW 12.60 VIS 50 PV 19 YP 17 Gels 4/10/14 FL 4.8 CL- 25500 FC 2 SOL 18.8 SD 0.10 OIL 0 MBT 2.5 pH 9.2 Ca+ 240 Alk 0.25 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 1503 @ Max after Wiper Trip @ TRIP GAS CUTTING GAS @ @ WIPER GAS 1503 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue circulating bottoms up at 9576'.(Note MW in 12.4+/MW out 12.4+).Monitor well for 10 minutes.(Well flowed for 7 minutes and was static last 3 minutes).Pull out of hole clean from 9576'to 8940'on wiper trip.Run back in hole from 8940'to 9520'.Kelly up and break circulation.Stage up pump rate from 3 bph to 11.5 bph.Wash down from 9520'to bottom at 9576'.Circulate bottoms up and continue to circulate and condition mud.Record 1503 units of wiper gas.Build mud weight to 12.6ppg.Monitor well for 10 minutes.(Well flowed for first 5 minutes and then lost volume for last 5 minutes).Pull out of hole from 9576'to 8000'.(On way out,pulled 30K over at 8546',8522',8504',8475').Kelly up at 7998'.Stage up pump rate from 3 bpm to 11.5 bpm and observe progressive loss of 50 bbls of fluid.Stop reciprocating and rotating and stage pumps back down to 3 bpm.Pump 28 bbls of LCM at 3 bph and then stage to 4 bph.Observe 820 units of gas at bottoms up and additional progressive loss of 120 bbls of fluid.Pull out of hole from 7998'to 6977'.(On way out,pulled 30K DAILY over at 7157').Kelly up and circulate at 3 bpm.Observe reduced flow to 9%almost immediately and no returns after 700 strokes.Begin circulating on back ACTIVITY side.Pump 38bb1/12.6ppg/50ppb LCM pill out of string(3562 strokes)and shut down pumps.Fluid losses continue at accelerated rate.Attempts to fill hole with SUMMARY the trip tank failed.Hole filling never caught up with the losses.Open up kill line.Pump 40bb1/12.6ppg/60ppb LCM pill down back side without returns,then follow with 91.3 bbls of mud.Monitor movement of fluid and shut pumps off just before fluid enters the flow line.Fluid levels in the casing drop rapidly.Pump 20.7 bbls more with trip tank pump,then 20.6 bbls with rig pumps through the kill line,attempting to raise fluid level back up to the flow line.Fluid levels started dropping immediately after pumps are shut down.Pump 20 bbls from trip tank to fill back side and observe fluid level drop.Continue to fill back side by pumping 10 bbls of fluid every 15 minutes.When the LCM pill finally reaches the base of the casing,the fluid level stopped dropping after each pump shut down and started to fill up the backside.With back side being filled,pump down the drill pipe with 61.3 bbls of mud,and progressively lose another 50.4 bbls. Shut down pumps.Fill back side with trip tank pump.A loss rate of 20 bbls/hr was established after finally gaining consistent returns.Pull out of hole from 6985' to 4018'.(Work through tight spots on way out at 6737',6667',6631'-6606',6545',6431',6400',6112'-6104',5816'-5784',5064'-5054',4948'-4907',4585'- 4578',4053'-4044',4035'-4028').(Tally of daily mud loss is 674.2 bbls,and losses for entire well is 2277.4 bbls). CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:J.Greco M.Leslie DATE:Apr 05,2013 DEPTH 9576 PRESENT OPERATION: Testing BOPE TIME:24:00 YESTERDAY 9576 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 9576(Projection) 21.30 260.44 9480.01 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 9.875 HCC HC505XX 7212129 8x12 8442 9576 1134 36.63 5-4-BT-A-X-I-CT-PR Slow drilling 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 9576/9480 TVD MW 12.50 VIS 52 PV 14 YP 20 Gels 5/11/15 FL 6.5 CL- 26500 FC 2 SOL 17.0 SD 0.60 OIL 0 MBT 2.5 pH 9.2 Ca+ 240 Alk 0.48 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 78 @ Pumping pill at 2723 @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Prep and rig up to lay down 5"drill pipe.Pull out of hole breaking and laying down in pipe shed 31 single joints of drill pipe from 4018'to 3038'.(Pull 30K over on way out at 3780',3656',3625').Lose 19 bbl of fluid pulling and laying down singles.Kelly up.Pump(at 3bpm)a 58 bbl(50ppb)LCM pill(1282 strokes)and chase with 61.4 bbls mud(1360 strokes).Lose 5.0 bbls while circulating.Monitor fluid loss and lose 24.1 bbls total in 90 minutes.Continue to condition mud at surface to maintain 12.60ppg.Line up to injection pump and squeeze 4.5 bbls of 12.6ppg mud.Record staged pressure gradient drawdown of-8/-15/-17psi respectively at 600/1200/1800 strokes pumped.Continue to monitor mud fluid losses at trip tank,strapping mud levels every 10 minutes while slowly reciprocating pipe.Lose 11.5 bbls total over 110 minutes.Stop reciprocating and lose another 2.5 bbls in 20 minutes.Pull out of hole breaking and laying down DAILY in pipe shed 10 single joints of 5"drill pipe from 3038'to 2723'.Pump(at 3bpm)42 bbl(60ppb)LCM pill(927 strokes)and chase with 56.0 bbls mud(1234 ACTIVITY strokes).Lose 29.2 bbls while circulating.Blow down top drive and mud line.Pull out of hole breaking and laying down in pipe shed 57 single joints of drill pipe SUMMARY from 2723'to top of HWDP at 926'.Pull out of hole,racking back in derrick,5"HWDP(and jars)and 5"compressive collars with filter sub to 73'.All fluid losses while pulling pipe monitored at trip tank.Clean out filter sub.Pull,break and lay down remaining bottom hole assembly(UP,MWD,2 pony 5"compressive collars,NM stabilizer,motor,bit).Flush and drain MWD and motor.Inspect and grade bit.Clear and clean rig floor.Prep to test BOPE.Break down old test joint.Make up stack washer and flush all ram cavities and annular.Make up test joint.Pull wear ring.Run in hole test joint and test plug.Fill stack with fresh water.Rig up test equipment.Test annular preventer to 250psi Low/2500psi High for 10minutes each.Test all other BOPE(upper pipe rams,lower pipe rams,blind rams,HCR choke,HCR kill,manual choke,manual kill,3 1/8"Demco on kill,upper IBOP,lower IBOP,TIW valve,dart valve,choke manifold valves 1-15)to 250psi Low/4000psi High for 10minutes each.Fluid losses continue to be monitored at trip tank while testing BOPE.(Total mud loss for last 24 hours is 146.9 bbls,and losses for entire well is 2424.3 bbls). CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 Ci\NRIG REPORT FOR:J.Greco M.Leslie DATE:Apr 06,2013 DEPTH 9576 PRESENT OPERATION: Circulating and conditioning hole at 4551',while running in on clean-out run TIME:24:00 YESTERDAY 9576 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 9576(Projection) 21.30 260.44 9480.01 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 9.875 HCC HC505XX 7212129 8x12 8442 9576 1134 36.63 1-1-WT-A-X-I-CT-TD Mandatory BOP Tests 2RR2 9.875 Smith XR+ PX5266 1x12,3x16 9576 In Hole 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 9576/9480 TVD MW 12.58 VIS 56 PV 19 YP 22 Gels 7/13/17 FL 5.0 CL- 31500 FC 2 SOL 16.4 SD 0.50 OIL 0 MBT 2.5 pH 8.6 Ca+ 240 CCI 0.10 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 2247 @ Circ at 4551 @ TRIP GAS 2247(at 4551) CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND 523 PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue testing all BOPE and observe significant group of failed tests during the initial phase.Valves re-opened,re-greased,re-conditioned and re-tested before passing inspection included:manual kill,manual choke,HCR kill,HCR choke,and CMVs 2,3,6,10,11,12.All were eventually successfully re-tested to 250psi Low/4000psi High for 10minutes each.In addition,the base seat of the upper rams'wear plate was leaking and required diagnostic troubleshooting procedures.Bleed off BOP test pressure.Perform accumulator drawdown test.Bleed off accumulator pressure.Pull test joint and test plug.Open up top rams. Remove old wear plate and replace it with new wear plate.Re-test choke valve 11 during installation of wear plate.Close upper ram doors.Pick up and re- install all test equipment.Re-test upper pipe rams and manual choke to 250psi Low/4000psi High for 10minutes each.Blow down,pull,rig down and lay down DAILY all test equipment.Install wear ring.Clear and clean rig floor.Prep to make up bottom hole assembly.Perform derrick inspection.Fill hole.Pick up and make ACTIVITY up short clean-out assembly(mill tooth bit,bit sub,NM stabilizer)to first stand of HWDP and run in hole.Continue running in hole with HWDP and jars out of SUMMARY derrick to 798'.Break circulation,staging up to 4bph,and monitor well.Prep to pick up single joints of 5"drill pipe out of the pipe shed.Continue running in hole,picking up from pipe shed,and making up 60 singles of 5"drill pipe to 2689'.Continue running in hole with 5 stands of 5"drill pipe from the derrick to 3004'.Kelly up and fill pipe.Circulate surface to surface(7508 strokes).Record 1175 units maximum gas.Run in hole 3 more stands to 3193'.Kelly up.Shut annular preventer.Open HCR kill valve.Pump and squeeze 25 bbls of 50ppb LCM into formation.Bleed off pressure.Pull out of hole 5 stands to 2878'.Kelly up.Shut annular preventer.Open HCR kill valve.Pump and squeeze 25 bbls of 80ppb LCM into formation.Keep 110psi on well for 30 minutes.Bleed off pressure.Close HCR kill valve.Open annular preventer.Run in hole from 2878'to 4551'.Slow down running in the 18 stands to attempt pushing mud away. Kelly up and break circulation.Circulate bottoms up and continue to circulate 10420 total strokes to condition hole and mud.Record 2247 units maximum gas. (Total mud loss for all activities last 24 hours is 154.2 bbls,and total losses for entire well is 2578.5 bbls). CANRIG PERSONNEL ON BOARD:4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:J.Greco M.Leslie DATE:Apr 07,2013 DEPTH 9576 PRESENT OPERATION: Building mud weight TIME:24:00 YESTERDAY 9576 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 9576(Projection) 21.30 260.44 9480.01 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2RR2 9.875 Smith XR+ PX5266 1x12,3x16 9576 In Hole 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 9576/9480 TVD MW 12.60 VIS 48 PV 19 YP 20 Gels 5/8/12 FL 5.2 CL- 30500 FC 2 SOL 17.3 SD 0.25 OIL 0 MBT 3.5 pH 10.1 Ca+ 240 Alk 0.48 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 2598 @ 9574 wiper gas @ TRIP GAS 2228 CUTTING GAS @ @ WIPER GAS 2598 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH 2150(Simulated) ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT 2150(Simulated) BUTANE(C-4) @ @ CURRENT AVG BACKGROUND 205 PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish circulating and conditioning hole.Continue running in hole from 4551'to 7048'.(Note 15.5 bbls lost running in).Kelly up and break circulation.Fill pipe, circulate bottoms up and continue to circulate hole(14172 strokes at 3 bpm/350psi).Record 1676 units maximum gas.Continue running in hole from 7048'to tight spot at 8579'(set down 70K).Pick up,kelly up and break circulation.Ream down rotating from 8564'to 8627'.Back-ream same stand to 8564'.Stop rotating and work stand for 11 slow,full reciprocations.Record 2326 units maximum gas,and record gas over 1000 units for 10955 strokes.Continue running in hole from 8627'to tight spot at 8853'(set down 55K).Pick up,kelly up and break circulation.Ream down rotating,washing through tight spots,from 8816'to 9006'.Record 634 units maximum gas.Continue running in hole on elevators from 9006'to 9574'(just off bottom).Kelly up and break circulation.Fill pipe, DAILY circulate bottoms up and continue to circulate 30431 total strokes.Slowly work stand while rotating for 5 full reciprocations(at 394gpm)and without rotating for ACTIVITY 8 full reciprocations(at 488gpm).Record 2311 units maximum gas,2228 units of Trip Gas and gas over 1000 units for 13493 strokes.Cease pumping and SUMMARY begin pulling out of hole on 15 stand wiper trip from 9574'to 8627'.Run back in hole from 8627'to 9574'(just off bottom).Kelly up and break circulation.Fill pipe,circulate bottoms up and continue to circulate 18326 total strokes.Slowly work stand while rotating for 8 full reciprocations(at 470gpm).Record 2598 units maximum gas,1933 units of Wiper Gas and gas over 1000 units for 6920 strokes.Turn pumps off for 20 minutes to simulate a connection and continue to slowly work pipe for 2 reciprocations while the the pumps are off.Check for flow and swab.Break circulation,fill pipe,circulate bottoms up and continue circulating.Record 2361 units maximum gas,2150 units of❑pumps-off❑gas and gas over 1000 units for 6920 strokes.Note that the maximum gas peak appears to originate from a sand at 8220'.Continue circulating after bottoms up of simulation interval,and begin building up mud weight from 12.5ppg to 12.7ppg.(Total mud loss for all activities last 24 hours is 67.9 bbls,and total losses for entire well is 2646.4 bbls). CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:J.Greco M.Leslie DATE:Apr 08,2013 DEPTH 9576 PRESENT OPERATION: Running wireline logs TIME:24:00 YESTERDAY 9576 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 9576(Projection) 21.30 260.44 9480.01 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2RR2 9.875 Smith XR+ PX5266 1x12,3x16 9576 9576 0 N/A 1-1-WT-A-E-I-NO-LOG Clean out run only 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 9576/9480 TVD MW 12.75 VIS 46 PV 19 YP 18 Gels 4/6/9 FL 5.2 CL- 28500 FC 2 SOL 17.7 SD 0.25 OIL 0 MBT 3.5 pH 10.0 Ca+ 200 Alk 0.40 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 447 @ 7996 @ N/A TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue conditioning and building mud weight to 12.7ppg.(Circulate 61569 total strokes from last monitoring with pumps off).Stop circulating and monitor well for 34 minutes.Quickly stroke pipe one time for 20'at start of monitoring to observe for swabbing or surging.Note fluid levels very slowly dropping. Resume circulating and circulate bottoms up from"pumps-off"interval with 12.6+mud.Record 210 units maximum gas.Continue to circulate and build mud weight to 12.7ppg and condition mud for 25307 total strokes since last pumps off.Monitor well.Note fluid levels very slowly dropping.Pull out of hole from 9574'to 7996'.Kelly up,fill pipe and circulate while doing two long slow pipe reciprocations.Circulate bottoms up.Record 447 units maximum gas.Continue DAILY to circulate for 15226 total strokes.Continue pulling out of hole four more stands from 7996'to 7729'.Pump 30 bbl/13.7ppg dry job(822 strokes total).Pull out ACTIVITY of hole from 7729'to 2689'.Monitor well at 3004'(inside shoe)and again at 2689'.Service top drive and drawworks.Pull out of hole,breaking and laying down SUMMARY in pipe shed 60 single joints of 5"drill pipe from 26890 to top of HWDP at 798'.Monitor well.Pull out of hole racking back 5"HWDP and jars in derrick.Break and lay down NM string stabilizer,bit sub,mill tooth bit.Monitor all fluid losses at trip tank.Clear and clean rig floor.Prep to run wireline logs.Hold pre-job meeting on procedures and safety during wireline operations.Rig up Halliburton Wireline Services to run e-logs.Pick up,make up as per Halliburton,and run in hole first logging assembly(Run#1:hole finder,array compensated resistivity tool,short axis kit,regal standoff,wave sonic insite,gamma telemetry tool). Unable to get logging assembly past 7990'after repeated attempts.Pull out of hole and change type of hole finder at base of assembly.Run back in hole first logging assembly with new hole finder.Still unable to get logging assembly past 7990'after repeated attempts.Begin logging out of hole from 7990'. CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT CAN SRU 24-15 RIG REPORT FOR:M.Leslie J.Grubb DATE:Apr 09,2013 DEPTH 9576 PRESENT OPERATION: Pulling out of hole,spotting pill TIME:24:00 YESTERDAY 9576 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 9576(Projection) 21.30 260.44 9480.01 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2RR3 9.875 Smith XR+ PX5266 1x12,3x15 9576 0 N/A In Hole 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 9576/9480 TVD MW 12.75 VIS 55 PV 24 YP 23 Gels 5/7/10 FL 4.2 CL- 31000 FC 2 SOL 17.8 SD 0.40 OIL 0 MBT 3.0 pH 9.8 Ca+ 240 Alk 0.30 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 2379 @ 9574(top of bubble 4692 @ TRIP GAS 2379 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND 70 PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue logging out of hole(at 30 ft/min)from 7990'to 2980',and then pull out of hole.Break and remake new logging assembly with addition of flex joint, density insite pad,spectral density tool(SDLT)and dual-spaced neutron(DSNT).(Note 4.50"OD of density tools).Add sources to neutron tools and run new logging assembly(Run#3)in hole to resistant bridge at 7990'.Work logging assembly and able to make some very slight progress to 7994',but again unable to get past 7994'after repeated attempts.Log out of hole with neutron-density tools(at 60 ft/min)from 7990'to 2980'.Pull out of hole to surface,pull neutron sources and break and lay down all tools.Decision made to try"short"assembly to get through blockage at 7994'.Make up new(31')assembly with only hole finder,array compensated resistivity tool,short axis kit and gamma telemetry tool and run in hole(Run#4).Run to 7994'and begin working tool.Again able to make some very slight progress to 7998',but unable to get past 7998'after many repeated attempts.Pull out logging assembly out of hole to surface.Break and lay down logging assembly.Rig down sheaves and all remaining Halliburton wireline logging equipment.Clear and clean rig floor.Prepare to run in hole DAILY with clean-out assembly.Pick up pre-made short clean-out assembly(mill tooth bit,bit sub,NM stabilizer),make up to first stand of HWDP,and run in hole. ACTIVITY Continue running in hole with HWDP and jars out of derrick to 798'.Break circulation,fill hole and briefly and monitor well.Prep pipe shed to move and skate SUMMARY single joints of 5"drill pipe.Pick up and make up joints of 5"drill pipe out of the pipe shed and continue running in hole to 2689'.Break circulation,fill pipe and continue to circulate while performing rig service operations.Slip and cut 125'of drill line.Service and inspect drawworks.Service brakes.Recalibrate block height encoder.Circulate 5161 total strokes and record 411 units maximum gas during rig service.Continue running in hole,with stands of 5"drill pipe out of the derrick,from 2689'to 4582'.Kelly up,break circulation and fill pipe.Circulate 1254 total strokes.Continue running in hole from 4582'to 6795'.Kelly up, break circulation and fill pipe.Circulate 1335 total strokes.Continue running in hole from 6795'to 9006'.Kelly up,break circulation and fill pipe.Circulate 933 total strokes.Continue running in hole from 9006'to 9511'.Kelly up,break circulation and fill pipe.Continue circulating and wash down from 9511'to 9574'(just above TD at 9576').Reciprocate and stroke pipe while continuing to circulate.Record 2379 units maximum gas.Circulate bottoms up and continue circulating to 15779 strokes.Briefly shut down pumps for 8 minutes.Pump 512 strokes and place 20 bbl LCM pill in drill pipe.Monitor well.Pull out of hole 5 stands from 9574'to 9258'.(Total mud loss for all activities last 24 hours is 29.8.0 bbls,and total losses for entire well is 2724.2 bbls). CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:M.Leslie J.Grubb DATE:Apr 10,2013 DEPTH 9576 PRESENT OPERATION: Running 7 5/8"Intermediate casing TIME:24:00 YESTERDAY 9576 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 9576(Projection) 21.30 260.44 9480.01 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2RR3 9.875 Smith XR+ PX5266 1x12,3x16 9576 9576 0 N/A 1-1-WT-A-E-I-NO-TD/CSG Clean out run only before Csg run 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 9576/9480 TD MW 12.80 VIS 58 PV 25 YP 23 Gels 5/8/11 FL 4.2 CL- 31000 FC 2 SOL 17.8 SD 0.50 OIL 0 MBT 3.0 pH 9.9 Ca+ 280 Alk 0.30 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 168 @ fill-up at 730,RIH csg @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Company man recognized that the rig failed to pump down the 20 bbl LCM until it was spotted in annulus.Briefly monitor well and then run back in hole the same 5 stands that were recently pulled.Run in hole from 9258'to 9511'.Kelly up,break circulation and wash down from 9511'to 9574'(just above TD at 9576').Pump 2704 strokes and spot 20 bbl LCM pill in intended position at bottom of the hole.Stop pumping and monitor well.Pull out of hole 10 stands from 9574'to 8940'.Monitor well.Pump 578 strokes and spot 20 bbl/14.3ppg dry job.Record 109 units maximum gas at finish of pumping.Blow down top drive and mud line.Continue pulling out of hole and standing back in derrick next 50 stands from 8940'to 6479'.Continue pulling out of hole,breaking and laying down in pipe shed 110 single joints of 5"drill pipe from 6479'to 3004'.Kelly up.Break circulation,fill pipe and establish return flow(693 strokes).Then pump in quick succession a 25 bbl/80 ppb LCM pill,followed by 20 bbls of 12.7ppg mud,followed by 20 bbls of 13.7ppg mud,followed by 5 bbls of 12.7ppg mud(1446 more DAILY strokes).Stop circulating and monitor well.Record 151 units maximum gas at finish of circulating.Pull out of hole,breaking and laying down in pipe shed 70 ACTIVITY single joints of 5"drill pipe from 3004'to top of HWDP at 798'.Monitor well.Pull out of hole,breaking and laying down in pipe shed 5"HWDP and jars.Break, SUMMARY lay down and off load NM string stabilizer,bit sub,mill tooth bit.Monitor all potential fluid losses at trip tank.Clean rig floor.Begin preparations for running 7 5/8"intermediate casing.Change out top rams to 7 5/8".Clear rig floor of unneeded tools.Lay down short 5"elevators and bails.Pick up casing long bails.Pull wear bushing.Install test plug.Rig up 7 5/8"test joint and test equipment.Test 7 5/8"rams to 250psi Low/4000psi High.Rig down test equipment and pull test joint.Make up full-open safety valve to 7 5/8"crossover.Lay down drill pipe make-up tongs.Upload(via beaver slide)false rotary table,dog collar, elevators and slips to rig floor.Rig up Weatherford casing-running equipment.Rig up casing tongs.Rig up fill line to pits.Hold pre-job safety and operations meeting on HILCORP-directed procedures for running 7 5/8"intermediate casing.Pick up,BakerLoc threads,make up and run in 7 5/8"shoe assembly to 125'. Install stop ring and bow spring centralizer on#1,#2 and#3 joints.Fill float joint and verify proper operation of float equipment.Continue running in hole with 7 5/8"intermediate casing from 125'to 730'.On way in,install 1 bow-spring centralizer on every odd joint,fill each joint on the fly and periodically top off to ensure balanced displacement.(Total mud loss for all activities last 24 hours is 23.5 bbls,and total losses for entire well is 2747.7 bbls). CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT CAN SRU 24-15 RAG REPORT FOR:J.Grubb M.Leslie DATE:Apr 11,2013 DEPTH 9576 PRESENT OPERATION: Running in hole with 7 5/8"Intermediate Casing TIME:24:00 YESTERDAY 9576 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3023' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 9576(Projection) 21.30 260.44 9480.01 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 @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 9576/9480.01 MW 12.00 VIS 50 PV 13 YP 22 Gels 7/11/14 FL 5.0 CL- 28000 FC 2 SOL 15.6 SD 0.20 OIL 0 MBT 2.5 pH 9.0 Ca+ 200 Alk 0.10 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 1137 @ at 4153 run in csg @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running in hole with 7 5/8"(29.71b/ft)intermediate casing from 730'to 4032'.On way in,install 1 bow-spring centralizer on every odd joint,fill each joint on the fly and top off every 10 stands to ensure thorough displacement.Continue running in hole with 7 5/8"(29.71b/ft)intermediate casing from 4052'to 5644',filling each joint on the fly and topping off every 10 stands to ensure thorough displacement.(Lose 27 total bbls on casing run from surface to 5644'). Make up cementing hose and swage to top of casing string.Begin pumping at 3 bpm.Start losing fluid immediately at start of pumping.Observe pressure loss and rapid drop of return flow to 0%.Pump 1144 strokes/51.6 bbls,but lose 56.1 bbls during pumping,and then immediately after shutting down the pumps,a 10.1 bbl loss in the first 5 minutes and 41.4 bbls over the next 31 minutes also with the pumps off.(All suggesting an overbalance loss along a zone of scraped DAILY and/or non-healed wall).Line up hole fill and trip tank to fill hole from back side.Unable to maintain steady return flow using only the hole-fill pump.Line up ACTIVITY mud pumps to the kill line.Begin filling the hole using only mud pump#1 at 3 bpm.Pump a total of 119 bbls to keep the hole full.Continue running in hole with SUMMARY 7 5/8"(29.7lb/ft)intermediate casing from 5644'to 6264',filling each joint on the fly and topping off every 10 stands to ensure thorough displacement.Using the kill line,pump a 55 bbl(80 lb/bbl)LCM pill down the annulus using the kill line.Build and increase mud volume 242 bbls.Still using the kill line,circulate down the annulus until returns are observed,then shut down the pumps and wait 5 minutes.Repeat this process 21 consecutive times and display apparent gain of 72.7 bbls,but net loss actually 169.3 bbls.Hook up cement line and swage,and pump 20 bbls down casing with no returns.Line up again through kill line and pump over the top of the hole.Pump 3899 strokes in 60 minutes(175.5 bbls)and lose 21.1 bbls.Fill up trip tank to circulate over the top of the hole. Build net 293.4 bbls in 158 minutes.Reduce mud weight in active system from 12.7ppg to 12.0ppg.Continue running in hole with 7 5/8"(29.71b/ft)intermediate casing from 6264'to 7912',filling each joint on the fly and topping off every 10 stands to ensure thorough displacement.(Total mud loss for all activities last 24 hours is 827.8 bbls,and total losses for entire well is 3575.5 bbls). CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANR1G REPORT FOR:J.Grubb M.Leslie DATE:Apr 12,2013 DEPTH 9576 PRESENT OPERATION: Finishing cement job;preparing to lay down drill pipe TIME:24:00 YESTERDAY 9576 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 9563' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 9576 21.30 260.44 9480.01 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 @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 9576/9480 TVD MW 12.0 VIS 69 PV 16 YP 30 Gels 10/15/18 FL 7.0 CL- 30000 FC 2 SOL 15.0 SD 0.20 OIL 0 MBT 2.5 pH 8.0 Ca+ 200 Alk 0.10 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 1884 @ pumping Mud Push @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue building mud volume and begin building Mud Push for cement job.Continue running in hole with 7 5/8"(29.711b/ft)intermediate casing from 7912'to 9534',filling each joint on the fly and topping off every 10 stands to ensure thorough displacement.Pick up and make up pup and hanger to landing joint.Make landing joint to top of 7 5/8"casing string.Run in and land hanger at 9563.75'.Note up weight and down weight at time of landing hanger.Make up cementing head(with plugs pre-loaded)and cement hose to landing joint.Rig down and lay down Weatherford casing-running equipment.Clean rig floor.Line up to cementing head,break circulation and pump 30 bbls of mud(670 strokes)with no returns.Line up hole-fill line to trip tank begin filling hole on back side. Monitor gain/loss every 10 minutes.Line up and pump another 63.5 bbls(1410 strokes)at 3 bpm through cement line to push bottom pill from 9563❑to 71246.Shut down pumps and hold pressure on casing.Turn hole-fill back on to keep hole filled.Monitor hole-fill loss every 10 minutes for 90 minutes.Pump 1300 strokes total with hole-fill and lose 17.2 bbls.Continue to keep hole filled across the trip tank.Transfer mud from rock washer to pits and begin cleaning rock washer to accept 260 bbl of lease water.Continue building mud volume and Mud Push.Pump 100 strokes through cement line every 5 minutes at 3 bpm to hold the pill in position.Pump 29 times over the next 251 minutes,with pressure on the casing starting at 390psi and finishing at 574psi.(Increase from 100 DAILY strokes to 200 strokes for last two pumpings).Note that fluid levels were dropping down the back side during initial pumping but stabilized and became static at ACTIVITY 1300 total strokes pumped,and remained static for the last 1000 strokes to 2300 total.Stop pumping down pipe.Blow down cement line and blow air back SUMMARY through cement hose to Schlumberger cementers.Continue cleaning rock washer.Continue conditioning and prepping mud for cement job.Continue monitoring well on back side and maintaining fluid levels through the hole-fill line(out of pit#2).Keep track of losses during monitoring.Continue to circulate over the top of the well and tracking losses.Hook up lines to Schlumberger cementers.Fill rock washer with water.Fill trucks with water for standby use.Lose 31.1 bbls during all monitoring and cement job rig up operations.Hold pre-job meeting for all hands on procedures and safety for cement job.Schlumberger cementers start prepping for batching up cement.Switch over to Schlumberger cementers and then pump 5 bbls of water into cement lines and test without incident to 250psi Low/4000psi High.Line up back to rig,pump 50 bbls of 13.5ppg Mud Push II at 125 gpm/580psi with rig pumps and shut down.Observe only 31 bbls of returns.Record 1884 units maximum gas while Mud Push was being pumped.Switch back over to Schlumberger cementers,who were batching up cement while spacer was being pumped.After dropping bottom plug,Schlumberger pumps 380 bbls of 14.0ppg Class A lead cement at 5.0 bpm/ 600psi with no returns,and then batches up and follows with 68 bbls of 15.3ppg tail cement at 5.0 bpm/600psi,also with no returns.Drop top plug.Displace cement with 437.5 bbls of lease water(at 4 bpm to catch cement at 125 bbls,2 bpm afterwards and,at 300 bbls away up to 3 bpm).Did not bump plug.Blow and rig down cementing equipment.Rig down cementing head.(Total mud loss for all activities last 24 hours is 1059.0 bbls,and total losses for entire well is 4634.5 bbls). CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRAG REPORT FOR:J.Grubb M.Leslie DATE:Apr 13,2013 DEPTH 9576 PRESENT OPERATION:Wireline logging to determine top of cement TIME:24:00 YESTERDAY 9576 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 9563 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 9576 21.30 260.44 9480.01 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 @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 9576/9480 TVD MW 10.55 VIS 51 PV 11 YP 18 Gels 4/7/11 FL 5.0 CL- 30000 FC 2 SOL 8.3 SD 0.05 OIL 0 MBT 2.0 pH 9.0 Ca+ 200 Alk 0.05 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) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue rigging down cementing head and circulating swage.Drain stack.Pull landing joint.Make up crossover,pack-off running tool and pack-off.Run in and set pack-off.Run in lockdowns.Test void to 250psi Low/3000psi High for 10 minutes.Pull and lay down landing joint and pack-off running tool.Remove long casing bails and install short drill pipe bails.Install 5"elevators.Upload spinner hawks to rig floor and rig up.Hang and service rig pipe tongs.Install wear bushing(with 9.0"wear ring).Prep to lay down drill pipe and hold meeting.Break,lay down and offload 100 joints of 5"drill pipe from the derrick.Rig down DAILY spinner hawks.Pull and lay down mouse hole.Grease the choke and HCRs.Change out upper rams to 2 7/8"x 5"VPRs.Change the lower pipe rams to 4" ACTIVITY hard body integral rams.Change out saver sub to HT-38.Change out bell guide to 4".Clear and clean rig floor.Remove and offload all remaining 5"tools and SUMMARY unneeded equipment.Move up and organize all necessary 4"tools.Prep and rig up to test BOPE.Pull wear bushing.Build 4"test joint with full operating safety valve(FOSV/TIW),dart valve,ported sub and test plug.Torque TIW and dart valves and install 4"test joint.Fill stack and choke manual kill line with water,and prep to test BOPE.Test all BOPE holding pressure levels on each test for 10 minutes.Test annular preventer to 250psi Low/2500psi High.Test other BOPE(top pipe rams,lower pipe rams,TIW valve,dart valve,lower IBOP,choke manifold valves 1-2-3-4-5-6-7-8-9-11-12-13-14-15)to 250psi Low/ 4000psi High.Rig down 4"test joint,TIW and dart valve.Blow down kill line and choke.Prep to run wireline logs.Rig up Pollard Wireline Services to run P/T thermal log.Pick up and make up Temperature/Pressure/Gamma tool and run in hole. CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC X' Swanson River Unit DAILY WELLSITE REPORT " SRU 24-15 RIG REPORT FOR:J.Grubb M.Leslie DATE:Apr 14,2013 DEPTH 9576 PRESENT OPERATION: Running in hole 4"drill pipe to be racked in derrick TIME:24:00 YESTERDAY 9576 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 9563' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 9576(Projection) 21.30 260.44 9480.01 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 @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 9576/9480 TVD MW 10.65 VIS 49 PV 11 YP 16 Gels 7/10/12 FL 5.0 CL- 29000 FC 1 SOL 8.7 SD 0.05 OIL 0 MBT 2.0 pH 9.2 Ca+ 200 Alk 0.05 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) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Run in hole with Pollard E-Line Services P/T thermal logging tool and tag at 9300'.Log out from 9300'to 2900'and establish top of cement at 6030'.Pull out of hole and lay down P/T logging tool.Rig down all Pollard wireline running equipment.Clean rig floor.Remove saver sub.Change out upper and lower IBOP. Change out hose to top drive grabber actuator.Make up saver sub.Prep and rig up to test BOPE.Make up test plug and head pin to 5"test joint.Rig up test DAILY manifold and testing equipment.Begin testing BOPE.Immediately experience multiple minor problems with test and blowout equipment.Troubleshoot through ACTIVITY five failed test passes before finalizing a successful test.Test BOPE(blind rams,CMV#10,upper IBOP,lower IBOP)to 250psi Low/4000psi High.Bleed off SUMMARY accumulator and open top ram doors.Take apart and rebuild manual choke.Change out mud seal on upper ram door.Drain stack.Test remaining BOPE(5" test joint,top pipe rams,HCR choke,HCR kill,manual choke,manual kill)to 250psi Low/5000psi High.Bleed off accumulator.Rig down all test equipment. Blow down all lines.Install wear ring.Prep pipe shed to move and skate single joints of 4"drill pipe.Hold pre-job meeting on picking up drill pipe.Pick up out of pipe shed,make up and run in hole(63)joints of 4"drill pipe to 1959'. CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT x. SRU 24-15 CANRAG REPORT FOR:J.Grubb M.Leslie DATE:Apr 15,2013 DEPTH 9600 PRESENT OPERATION: Circulating hole clean before performing FIT TIME:24:00 YESTERDAY 9576 24 HOUR FOOTAGE 24 CASING INFORMATION 7 5/8"@ 9563' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 9576(Projection) 21.30 260.44 9480.01 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 5 6.75 HCC DP5505X 7034894 5x11 9576 24 0.40 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 249.0 @ 9581 3.9 @ 9579 86.4 64.2 FT/HR SURFACE TORQUE 6363 @ 9597 4017 @ 9582 5515.6 5877.0 AMPS WEIGHT ON BIT 9 @ 9599 1.0 @ 9584 3.7 4.8 KLBS ROTARY RPM 46 @ 9600 29 @ 9593 36.2 46.0 RPM PUMP PRESSURE 1951 @ 9594 935 @ 9577 1719.0 1809.0 PSI DRILLING FLUIDS REPORT DEPTH 9600/9499 TVD MW 10.60 VIS 47 PV 10 YP 19 Gels 6/10/13 FL 5.0 CL- 29000 FC 2 SOL 8.7 SD 0.05 OIL 0 MBT 2.0 pH 9.0 Ca+ 200 Alk 0.05 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 39 @ 9581 8 @ 9590 18.9 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 17812 @ 9581 1778 @ 9590 5240.8 CONNECTION GAS HIGH ETHANE(C-2) 0 @ 0 © 0.0 CONNECTION GAS:AVG PROPANE(C-3) 0 @ 0 @ 0.0 CONNECTION GAS:CURRENT BUTANE(C-4) 0 @ 0 @ 0.0 CURRENT AVG BACKGROUND 8 PENTANE(C-5) 0 @ 0 @ 0.0 HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Sandstone,Tuffaceous Siltstone.Minor Tuffaceous Claystone,Sand/Sandstone,Volcanic Ash. PRESENT LITHOLOGY TUFFACEOUS SANDSTONE TUFFACEOUS SILTSTONE TUFFACEOUS CLAYSTONE Continue to pick up out of pipe shed,make up and run in hole(80 total)joints of 4"drill pipe to 2088'.Pull out of the hole from 2088'racking back 40 stands of 4"drill pipe in the derrick.Break off and lay down mule shoe.Clear and clean rig floor.Perform derrick inspection.Move directional assembly tools up to rig floor via beaver slide.Strap and tally 4"HWDP in pipe shed and remove box end protectors.Pick up,make up and run in hole directional assembly(6 3/4"bit,motor,NM string stabilizer,2 NM pony compressive collars,MWD,pulsar,NM filter sub,2 NM compressive collars,crossover,)to 139'.Orient motor to MWD during make up.Continue in to 172'on first joint of HT-38 4"HWDP and perform shallow function test of MWD tool(at 167gpm,350psi).Blow down top drive.Rig up spinner hawks.Pick up,make up and run in hole 4"HWDP section(5 joints 4" DAILY HT-38 HWDP,Dailey jars,13 joints HT-38 4"HWDP)from 172'to 745.Load and strap joints of HT-38 4"drill pipe in the pipe shed.Pick up out of ACTIVITY pipe shed,make up and run in hole 4"HT-38 drill pipe singles from 745'to 3890'.Install isolation valve on annular preventer,then close line and SUMMARY perform function test.Pick up out of pipe shed,make up and run in hole 4"HT-38 drill pipe singles from 3890'to 5714'.Set and calibrate block height sensor for BHI MWD.Continue to pick up out of pipe shed,make up and run in hole 4"HT-38 drill pipe singles from 5714'to 9355'.Prep and rig up to test casing.Test casing to 3000psi for 30 minutes.Continue running in hole from 9355'with 4"drill pipe out of the derrick.Tag cement (and take weight)at 9436'.Drill out cement to top of float collar/start of shoe track at 9479'.Drill out float collar and cement in shoe track to 9547'. Stop drilling out cement,circulate surface to surface and swap out lease water in well with 10.6ppg drilling mud.Circulate 13251 total strokes(at 250gpm/1450psi)and obtain 10.6ppg drilling mud around.Drill out remaining shoe tract(cement,shoe at 9563',rat-hole)to 9576'.Drill 24'of new hole from 9576'to 9600'.Begin circulating bottoms up. CANRIG PERSONNEL ON BOARD:4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CAP4RIG REPORT FOR:J.Grubb M.Leslie DATE:Apr 16,2013 DEPTH 10179 PRESENT OPERATION: Drilling TIME:24:00 YESTERDAY 9600 24 HOUR FOOTAGE 579 CASING INFORMATION 7 5/8"@ 9563' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9521 21.30 260.44 9428.76 SURVEY DATA 9679 19.99 260.12 9576.72 9870 19.12 265.10 9756.66 10053 19.37 268.13 9929.54 10180 19.43 268.83 10049.48 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 5 6.75 HCC DP5505X 7034894 5x11 9576 603 14.22 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 206.5 @ 9982 1.4 @ 9991 73.4 26.8 FT/HR SURFACE TORQUE 8466 @ 10097 193 @ 9718 4691.2 Sliding AMPS WEIGHT ON BIT 29 @ 9828 0.4 @ 9655 8.9 15.10000 KLBS ROTARY RPM 77 @ 9956 1 @ 9710 43.8 Sliding RPM PUMP PRESSURE 2724 @ 10052 1469 @ 9624 2209.9 2254.0 PSI DRILLING FLUIDS REPORT DEPTH 10180/10049 ND MW 10.55 VIS 46 PV 12 YP 22 Gels 7/10/13 FL 4.2 CL- 29000 FC 2 SOL 8.7 SD 0.10 OIL 0 MBT 2.5 pH 9.6 Ca+ 240 Alk 1.00 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 182 @ 10106 0 @ 9882 49.7 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY 83 METHANE(C-1) 36185 @ 10106 9 @ 9879 10034.3 CONNECTION GAS HIGH 138 ETHANE(C-2) 161 @ 10106 0 @ 21.6 CONNECTION GAS:AVG 70 PROPANE(C-3) 61 @ 10105 0 @ 6.7 CONNECTION GAS:CURRENT 111 BUTANE(C-4) 0 @ 0 @ 0.0 CURRENT AVG BACKGROUND 64 PENTANE(C-5) 0 @ 0 @ 0.0 HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Sandstone,Tuffaceous Siltstone,Tuffaceous Claystone,Coal/Carbonaceous Shalel/Carbonaceous Material.Minor Volcanic Ash,Sand/Sandstone,Conglomeratic Sand/Conglomerate. PRESENT TUFFACEOUS SANDSTONE TUFFACEOUS SILTSTONE TUFFACEOUS CLAYSTONE LITHOLOGY Circulate bottoms up and condition and clean hole.Pull out of hole from 9600'to 9546'.Close rams and prep for Formation Integrity Test.Make DAILY up TIW valve,head pin,tee,chicksan,Lo-Torque valve,cement hose,sensator.Perform F.I.T.with injection pump.Pressure up to 1457psi ACTIVITY (13.5 EMW).Shut in pump and hold pressure for 14 minutes.Bleed off pressure and open up rams.Blow down and rig down test equipment. SUMMARY Run back down from 9546'to bottom at 9600'.Continue drilling ahead from 9600'to 9859'.Wait on survey.Continue drilling ahead from 9859'to 10179'. CANRIG PERSONNEL ON BOARD:4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRAG REPORT FOR:J.Grubb R.Pederson DATE:Apr 17,2013 DEPTH 10997 PRESENT OPERATION: Drilling TIME:24:00 YESTERDAY 10179 24 HOUR FOOTAGE 818 CASING INFORMATION 7 5/8"@ 9563' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 10180 19.43 268.83 10049.48 SURVEY DATA 10372 19.92 269.31 10229.96 10624 20.81 267.80 10465.99 10813 19.90 267.80 10643.05 11004 19.13 268.18 10823.06 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 5 6.75 HCC DP5505X 7034894 5x11 9576 1421 28.64 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 977.9 @ 10452 1.0 @ 10560 85.0 320.8 FT/HR SURFACE TORQUE 9392 @ 10467 5003 @ 10271 6085.4 8821.0 AMPS WEIGHT ON BIT 17 @ 10934 0 @ 10656 5.6 12.5 KLBS ROTARY RPM 81 @ 10808 35 @ 10244 52.0 59.0 RPM PUMP PRESSURE 3227 @ 10958 1742 @ 10427 2560.7 3025.0 PSI DRILLING FLUIDS REPORT DEPTH 10997/10816 ND MW 10.70 VIS 45 PV 15 YP 21 Gels 6/9/12 FL 3.8 CL- 31000 FC 2 SOL 9.1 SD 0.10 OIL 0 MBT 2.5 pH 10.0 Ca+ 240 Alk 1.00 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 285 @ 10995 8 @ 10402 67.7 TRIP GAS CUTTING GAS @ @ WIPER GAS 1660 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 42721 @ 10996 1719 @ 10401 13093.1 CONNECTION GAS HIGH 221 ETHANE(C-2) 3014 @ 10915 0 @ 180.4 CONNECTION GAS:AVG 127 PROPANE(C-3) 2522 © 10993 0 @ 151.9 CONNECTION GAS:CURRENT 221 BUTANE(C-4) 1809 @ 10994 0 @ 88.1 CURRENT AVG BACKGROUND 65 PENTANE(C-5) 916 @ 10994 0 @ 40.3 HYDROCARBON Hemlock oil show from 10912'to 10996'.Fair show overall. SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 10912-10996' Entire show interval is tuffaceous sandstone with minor fractions of 285u Max Gas;40 Tuff SS:light olive gray,dominant fine U-Med other constituents;note that overall,due to the matrix of tuffaceous ash units before and Lo;ang-subrd,mod w sited;abnt tuff mtrx; and other clays the sandstone does not look like it has good after.145u average sublithic aren;prom near 100%mod bri yel permeability and porosity,but but historically has demonstrated throughout spl fluor,inst bri yel cut fluor,only fnt resid otherwise mg. LITHOLOGY Major Tuffaceous Sandstone,Tuffaceous Siltstone,Tuffaceous Claystone,Coal/Carbonaceous Shale,Sand/Sandstone,Volcanic Ash. Minor Conglomeratic Sand/Conglomerate. PRESENT TUFFACEOUS SANDSTONE LITHOLOGY DAILY Continue drilling ahead from 10179'to 10744'.Circulate bottoms up and continue circulating until shakers are clean as per Baroid mud ACTIVITY engineer.Perform flow check.Pump dry job.Pull out of hole from 10744'to 9546'on wiper trip.Service top drive.Monitor well.Run back in SUMMARY hole from 9546'to 10744'.(Note:on elevators both in and out of the well with no issues).Kelly up and break circulation.Record 1660 units of wiper gas.Continue drilling ahead from 10744'to 10997'. CANRIG PERSONNEL ON BOARD:4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 coirsiRIG REPORT FOR:J.Grubb R.Pederson DATE:Apr 18,2013 DEPTH 11594 PRESENT OPERATION: Drilling TIME:24:00 YESTERDAY 10997 24 HOUR FOOTAGE 597 CASING INFORMATION 7 5/8"@ 9563' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 11004 19.13 268.18 10823.06 SURVEY DATA 11190 19.00 267.35 10998.74 11317 18.31 265.90 11118.95 11502 17.05 265.87 11295.16 11629 16.31 266.69 11416.92 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 5 6.75 HCC DP5505X 7034894 5x11 9576 2018 45.33 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 241.6 @ 11456 1.6 @ 11251 53.9 64.0 FT/HR SURFACE TORQUE 12833 @ 11594 52 @ 11016 7336.1 12833.0 AMPS WEIGHT ON BIT 26 @ 11126 0 @ 11197 7.5 22.3 KLBS ROTARY RPM 84 @ 11479 1 @ 11014 53.8 3.0 RPM PUMP PRESSURE 3544 @ 11253 2253 @ 11013 2767.3 2686.0 PSI DRILLING FLUIDS REPORT DEPTH 11588/11378 TVD MW 10.90 VIS 45 PV 15 YP 23 Gels 6/9/11 FL 3.4 CL- 34000 FC 2 SOL 9.9 SD 0.10 OIL 0.5 MBT 2.5 pH 10.0 Ca+ 280 Alk 1.00 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 237 @ 11173 23 @ 11225 65.7 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 37595 @ 11124 326 @ 11184 10556.1 CONNECTION GAS HIGH 314 ETHANE(C-2) 1133 @ 11073 2 @ 11223 163.3 CONNECTION GAS:AVG 132 PROPANE(C-3) 1307 @ 11175 0 @ 11223 163.7 CONNECTION GAS:CURRENT 94 BUTANE(C-4) 3957 @ 11175 0 @ 11484 185.5 CURRENT AVG BACKGROUND 35 PENTANE(C-5) 4397 @ 11175 0 @ 11484 141.6 HYDROCARBON SHOWS Continued significant fair shows from 10996'to 11190'.Poor and trace shows 11190'to 11452' INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 1:10996'-11190'has fair #1 interval is nearly all tuffaceous sandstone;due to the matrix of 237u Max Gas; Tuff SS:light olive gray,dominant fine U-Med shows.2:11190'-11452' tuffaceous ash and other clays the sandstone does not appear to 30-45 units Lo;ang-subrd,mod w srted;abnt tuff mtrx; poor and trace shows have good permeability and porosity.#2 interval is greater mix of before and sublithic aren;90%or greater mod bri yel spl lithologies but cuts,with few exceptions are from the tuff ss. after gas fluor,inst bri yel cut fluor,only fnt resid mg. peaks. LITHOLOGY Major Tuffaceous Sandstone,Tuffaceous Siltstone,Volcanic Ash,Coal/Carbonaceous Shalel/Carbonaceous Material.Minor Tuffaceous Claystone,Sand/Sandstone,Calcareous Tuff. PRESENT TUFFACEOUS SANDSTONE LITHOLOGY DAILY ACTIVITY SUMMARY Continue drilling ahead from 10997'to 11594'. CANRIG PERSONNEL ON BOARD: 4 _DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:J.Grubb R.Pederson DATE:Apr 19,2013 DEPTH 11710 PRESENT OPERATION: Pulling out of hole at TD to run wireline logs TIME:24:00 YESTERDAY 11594 24 HOUR FOOTAGE 116 CASING INFORMATION 7 5/8"@ 9563' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 11629 16.31 266.69 11416.92 SURVEY DATA 11656 15.79 266.53 11442.86 11710(Projection) 15.79 266.53 11494.83 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 5 6.75 HCC DP5505X 7034894 5x11 9576 11710 2134 48.42 In Hole TD of well DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 176.0 @ 11695 2.8 @ 11595 42.7 25.4 FT/HR SURFACE TORQUE 9171 @ 11686 5976 @ 11626 7357.7 7219.0 AMPS WEIGHT ON BIT 19 @ 11625 2 © 11699 7.8 3.0 KLBS ROTARY RPM 75 @ 11596 47 @ 11652 57.0 54.0 RPM PUMP PRESSURE 3173 @ 11643 1916 @ 11625 2913.3 2897.0 PSI DRILLING FLUIDS REPORT DEPTH 11701/11494 TVD MW 11.5 VIS 45 PV 15 YP 21 Gels 5/7/9 FL 3.2 CL- 32000 FC 2 SOL 12.6 SD 0.10 OIL 0.5 MBT 2.5 pH 9.6 Ca+ 280 Alk 0.60 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 68 © 11598 32 @ 11602 40.0 TRIP GAS CUTTING GAS @ @ WIPER GAS 822 CHROMATOGRAPHY(ppm) SURVEY 101 METHANE(C-1) 13542 @ 11598 6545 @ 11602 7903.3 CONNECTION GAS HIGH 114 ETHANE(C-2) 137 @ 11710 3 © 11610 40.4 CONNECTION GAS:AVG 105 PROPANE(C-3) 29 @ 11693 1 @ 11610 16.4 CONNECTION GAS:CURRENT 96 BUTANE(C-4) 0 @ 0 @ 0.0 CURRENT AVG BACKGROUND N/A PENTANE(C-5) 0 @ 0 @ 0.0 HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Sandstone,Volcanic Ash,Tuffaceous Siltstone,Carbonaceous Claystone/Shale.Minor Tuffaceous Claystone, Argillaceous Claystone/Shale. PRESENT TUFFACEOUS SANDSTONE LITHOLOGY Continue drilling ahead from 11594'to Total Depth at 11710'.Circulate bottoms up.Monitor well and observe it flowing at 4.3bph.Resume circulating and begin building mud weight.Build mud weight from 10.9ppg to 11.4ppg.Stop circulating and monitor well.Observe well flowing at 1.75bph.Continue circulating while waiting on instructions as per Hilcorp.Stop circulating.Pull,break and lay down single from 11710'to 11691'. Pull cleanly out of the hole from 11691'to 9547'(just inside shoe)racking back stands of 4"drill pipe in the derrick.Slip and cut the drill line(23 DAILY wraps,115').Recalibrate block height sensor.Service rig.Run back in hole from 9547'to 11691'(filling pipe every 1200').Pick up and make up ACTIVITY single out of pipe shed.Kelly up and break circulation.Run down and tag bottom at 11710'.Begin pumping around 20 bbl Hi-Vis sweep.Note that SUMMARY gas started increasing quickly over 100 units after only 1407 strokes pumped(2133'arrival depth),to a first peak of 193 units after 2856 strokes (4250'arrival depth),to 822 units maximum gas at 6829 strokes(10201'arrival depth)and a slightly early bottoms up peak of 568 units at 7603 strokes(11463'arrival depth).Circulate gas down and condition hole.Stop pumping at 13345 total strokes.Monitor well for 5 minutes.Observe slight flow.Pull out of hole from 11710'to 9547'(inside shoe).Work through tight spots at 11682',11622',11593'-11585',11564'-11561',11510', 11348'on way out.Kelly up and monitor well for one hour.Observe very slight flow(0.5 bbl gain).Pump dry job.Continue pulling out of hole from 9547'to 6722'. CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:J.Grubb R.Pederson DATE:Apr 20,2013 DEPTH 11710 PRESENT OPERATION:Wireline Logging TIME:24:00 YESTERDAY 11710 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 9563' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 11710(Projection) 15.79 266.53 11494.83 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 5 6.75 HCC DP5505X 7034894 5x11 9576 11710 2134 48.42 0-1-WT-S-X-1-CT-TD TD of well 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 11710/11494 TVD MW 11.50 VIS 45 PV 14 YP 21 Gels 5/7/9 FL 3.2 CL- 32000 FC 2 SOL 12.1 SD 0.10 OIL 0.5 MBT 2.5 pH 9.4 Ca+ 280 Alk 0.60 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) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue pulling out of hole from 6722'to top of HWDP at 745'.Check for flow.Pull HWDP and jars out of hole from 745'to 139',racking back in derrick.Pull,break,lay down and off load directional assembly(crossover,2 NM compressive collars,NM filter sub,pulsar,MWD,2 NM pony compressive collars,NM string stabilizer,motor,6 3/4"bit,).Inspect and grade bit.Clear and clean rig floor.Send out all short directional tools. Monitor all fluid gains at trip tank.Prep to run wireline logs.Hold pre-job meeting on procedures and safety during wireline operations.Rig up Halliburton Wireline Services to run E-logs.Install upper and lower sheaves.Pick up,make up as per Halliburton,and run in the hole quad-combo logging assembly(Run#1:hole finder,array compensated resistivity tool,short axis kit,regal standoff,wave sonic in-site,gamma telemetry tool, flex joint,density in-site pad,spectral density tool(SDLT)and dual-spaced neutron(DSNT)).Unable to get logging assembly past 9855'after two DAILY attempts,and simultaneously observe a total failure of neutron source tools.Pull out of hole and troubleshoot.Disconnect the cable head.(Perform ACTIVITY simultaneous operations,including:cleaning the rock washer,changing out the suction rod on mud pump#1,and valve tune-up on mud pump SUMMARY motor#3).Change out the GTT,but discover that its replacement also fails to function properly.Determine that the power-sync for the entire logging assembly is not working properly,and thus the density-porosity tools will not function properly.Change out both nuclear sources,retest the density-porosity tools for a third time without success,and thus confirm the failure of the power step-up unit.Break and lay down the nuclear source tools.Connect the cable head and the GTT tool to the wave sonic tool and successfully function test.Minus neutron source tools,run back in the hole with a reconstructed,narrower,more robust assembly(Run#2).The logging assembly easily slid past 9855'and continued the rest of the way to 11709'.Begin logging out of hole from 11709',and continue to log out with no problems when the tool suddenly got struck at 11385'.All attempts at freeing the tool the next 8 hours,including pulling at 80%of the cable strength,have failed.Constant pull on tool(at 50%of cable strength)to be maintained until recovery(strip-over)tools arrive at location. CANRIG PERSONNEL ON BOARD: 4 DAILY COST: 3260 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 ANRIG REPORT FOR:J.Grubb R.Pederson DATE:Apr 21,2013 DEPTH 11710 PRESENT OPERATION: Rigging up to strip over wireline TIME:24:00 YESTERDAY 11710 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 9563' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 11710(Projection) 15.79 265.23 11494.83 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 @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 11710/11494 TVD MW 11.45 VIS 46 PV 13 YP 20 Gels 5/7/9 FL 3.6 CL- 32000 FC 2 SOL 12.1 SD 0.10 OIL 0.5 MBT 2.5 pH 9.5 Ca+ 280 Alk 0.50 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) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue wait for Halliburton wireline stripping kit to arrive on location.Halliburton maintained constant 50%tension on wireline until 05:20 Hrs, then reduced tension to slightly above tool string weight while continuing to wait on stripping kit.Perform various simultaneous operations around rig that include:general housekeeping,MP2 work orders,insulating steam lines,greasing and rebuilding choke manifold valves#10 and#11, changing out hanger bearing on pit auger.At 16:00 Hrs:Halliburton slacked off completely on the wireline tension,the upper sheave is re-rigged DAILY from the elevators to the derrick and re-secured with secondary support and then the lower sheave repositioned and re-rigged before the wireline ACTIVITY is pulled back up and held again at its string weight tension.After the Halliburton wireline stripping kit to arrives on location,a pre-job meeting with SUMMARY all hands is held to discuss operations,procedures and safe practices of strip-over operations.The T-Bar Hanger is made up on the wireline,and the wireline is slacked-off all the way.Maintaining the secondary support on upper sheave at all times,the tugger line holding the upper sheave is changed out to the heavy wireline chain.Upload all wireline stripping tools to the rig floor.Pull wireline slack up to the floor.Measure and cut wireline at point designated by Halliburton.Install spear head and rope socket on end of down hole line.Install rope socket,sinker bar,and spear head overshot on end of cable hanging in derrick.Test rope sockets with tension for 5 minutes to ensure they are seated correctly.Screw grapple and subs on bottom of first stand of HWDP. CANRIG PERSONNEL ON BOARD: 3 _DAILY COST: 2460 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT CAK SRU 24-15 RIG REPORT FOR:J.Grubb R.Pederson DATE:Apr 22,2013 DEPTH 11710 PRESENT OPERATION: Stripping in hole over wire line TIME:24:00 YESTERDAY 11710 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 9563' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 11710(Projection) 15.79 265.23 11494.83 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 @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH MW 11.35 VIS 46 PV 14 YP 21 Gels 4/7/8 FL 4.2 CL- 33000 FC 2 SOL 11.8 SD 0.10 OIL 0.5 MBT 2.5 pH 10.2 Ca+ 280 Alk .85 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 2352 @ 9543 @ TRIP GAS 2352 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Make up grapple and subs on bottom of first stand of HWDP and then torque up as per Baker representative.Run in hole with first stand.Break down wire line weight bars and add knuckle joint to each connection.Remove hose from top drive counter balance.Strip in hole over wire line with 4"HWDP from surface to 544'.Continue to strip in hole over wire line with 4'drill pipe from 544'to 1620'.Pull 6500 lbs on wire line and measure 21'of stretch.Set tee bar anchor on stump,cut 17'off the wire line and re-anchor the head.Load test to 7500 lbs for 5 minutes.Remove tee bar DAILY anchor.Continue to strip in hole over wire line with 4"drill pipe from 1620'to 1747'.Notice anchor on head is slipping.Install tee bar anchor. ACTIVITY Redress head anchor with new slips.Load test to 7500 lbs for 10 minutes.Continue to strip in hole over wire line with 4"drill pipe from 1747'to SUMMARY 3384'.Stop and ensure weight bars are tight.Continue to strip in hole over wire line with 4"drill pipe from 3384'to 9543'(just inside 7 5/8"shoe). Begin circulating bottoms up.Note that gas started increasing quickly after only 476 strokes pumped(-707'),to a first small peak of 193 units after 2194 strokes(-3257'),to 2352 units maximum gas at 4689 strokes(-6961')to a slightly early bottoms up peak of 1814 units at 6029 strokes (-8951')and late peak of 1509 units at 7344 strokes(BU+916 strokes).Circulate and condition hole for 10112 total strokes.Stop pumping and monitor for 10 minutes.Observe slight flow.Begin circulating another bottoms up(and eventually circulate 26795 total strokes). CANRIG PERSONNEL ON BOARD: 3 DAILY COST: 2460 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:J.Greco R.Pederson DATE:Apr 23,2013 DEPTH 11710 PRESENT OPERATION: Reeling back wireline after burning logging tool head conncecton TIME:24:00 YESTERDAY 11710 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 9563' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 11710(Projection) 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 @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 11710/11494 TVD MW 11.40 VIS 44 PV 14 YP 20 Gels 4/6/7 FL 4.2 CL- 32000 FC 2 SOL 12.1 SD 0.10 OIL 0.5 MBT 2.5 pH 10.0 Ca+ 280 Alk 0.80 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 3316 @ 11245 @ TRIP GAS 3316 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue circulating and weight up to 11.4ppg.(Circulate 26795 total strokes).Monitor well for 10 minutes.Well flowing at 1.2bph.Break out top drive and crossover sub.Remove hang-off sub C-plate,hang-off sub and crossover.Pull 9000 lbs on wire line.Install T-bar anchor on wire line. Reset head anchor.Load test anchor to 9000 lbs for 10 minutes.Remove T-bar anchor.Blow down top drive.Continue to strip in hole over wire line with 4"drill pipe from 9543'to 9858'.Note that drill pipe is out of balance.Make up crossover,hang-off sub,crossover to top drive.Set hang-off sub C-plate.Circulate surface to surface(9127 total strokes).Record 1195 units maximum gas.Pump 20 bbl 13.0ppg slug.Rig down hang-off sub and crossovers.Continue to strip in hole over wire line from 9858'to 11245'.Make up crossover,hang-off sub,crossover to top drive.Set hang-off sub C-plate.Circulate 10220 total strokes.Record 3316 units maximum gas.Rig down hang-off sub and crossovers.Continue to strip in hole over wire line with 3 joints of 4"drill pipe from 11245'to 11336'.Set down 10K string weight in attempt latch onto fish.Attempt failed.Pick up and break off single.Install C-plate and latch-up and make up to previous stand at 11305'.Work down one joint and continue attempts to latch onto fish.Attempts failed.Lay down single again.Install hang-off sub and crossovers.Pump and work same joint back down while attempting to latch onto fish. DAILY Attempt failed.Repeat laying down single again.Install hang-off sub and crossovers.Make up same joint again,the pump and work back down ACTIVITY attempting to latch onto fish.Attempt failed.Repeat laying down single again.Install hang-off sub and crossovers.Pump and work joint back down. SUMMARY This time slack off 20K in another failed attempt at latching onto fish.Repeat laying down single again.Install hang-off sub and crossovers.Make up same joint again,the pump and work back down attempting to latch onto fish.Install hang-off sub and crossovers.Pump and work joint back down.Slack off 25K.Pulled 60K over to break free.Rig down crossovers and hang-off sub.Pick up to single and connected wireline.Pull up and observe wire line weight decrease.Verify fish attached.Pick up stand all the way up and disconnect.Install C-plate and hang off T-bar.Hang wire line and disconnect latching tool.Pull the wire line out of the stand of pipe and lower it to rig floor.Lay down the wireline weight bars.Tie off and cut the rig side of wire line cable,and then splice to the length inside the drill pipe.Halliburton verifies the continuities and effectiveness of newly spliced cable.Pick up 6500 Ilbs on the wire line to induce some tension on the line before it is burned at the top of the logging tools.Halliburton goes through set-up procedures and successfully burns apart the cable.There was a sudden drop of metered voltage at the same as a 4K drop in string weight to indicate a successful tool burn.Work wire line with elevators to ensure that it is free.Pull enough slack to reach the Halliburton logging unit.Tie the ends of the cable together on the ground.Slowly reel the cable to the onto the drum spool and align.Reel back a small amount of cable to initiate proper spacing on the drum.Begin and continue reeling the wire line out of the hole and onto the drum spool. CANRIG PERSONNEL ON BOARD: 3 DAILY COST: 2460 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 CANRIG REPORT FOR:J.Greco R.Pederson DATE:Apr 24,2013 DEPTH 11710 PRESENT OPERATION: Running in hole on clean out run TIME:24:00 YESTERDAY 11710 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 9563 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 11710 15.79 265.23 11494.83 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 6 6.75 Smith XR+VPS PT5043 3x15 11170 0 0 Clean out only 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 11710/11494 TVD MW 11.40 VIS 45 PV 14 YP 19 Gels 5/7/8 FL 3.8 CL- 32000 FC 2 SOL 12.1 SD 0.10 OIL 0.5 MBT 2.5 pH 9.8 Ca+ 280 Alk 0.70 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 961 @ 9545 @ TRIP GAS 961 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue and finish reeling the recovered wire line all the way out of the hole and onto the drum spool.Rig down and off load the upper and lower wire line sheaves and all remaining Halliburton wire line and strip over equipment.Clear rig floor.Circulate bottoms up(and 8148 total strokes) from 11300'and record 799 units maximum gas.Pull out of hole from 11300'to 10602',laying down first 2 joints of 4"drill pipe and then racking DAILY back 10 stands.Pump 27 bbl,12.6ppg slug.Continue pulling out of hole racking back stands of 4"drill pipe from 10602'to just inside shoe at ACTIVITY 9476'.Monitor well at shoe.Well flowing at 1.1 bph.Pull out of hole from 9476'to surface.Inspect wire line tool in overshot.Break bottom hole SUMMARY assembly connections and rack back last stand of HWDP.Lay down and off load Halliburton wire line tools.Clear and clean rig floor.Off load unneeded subs and crossovers.For clean out run:pick up,make up and run in hole lower 12'section of bottom hole assembly(mill tooth bit,bit sub,NM string stabilizer,crossover).Make up lower bottom hole assembly to first stand of 4"HWDP in derrick.Continue running in hole with HWDP and jars to 617'.Continue running in hole with 4"drill pipe(filling hole every 2000')from 617'to 9545'(just inside shoe).Circulate bottoms up(and 9409 total strokes).Record 961 units maximum gas.Continue running in hole from 9545 to 11180'. CANRIG PERSONNEL ON BOARD: 3 DAILY COST: 2460 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 AIRIG REPORT FOR:J.Greco R.Pederson DATE:Apr 25,2013 DEPTH 11710 PRESENT OPERATION: Running in hole with 5"Production Liner TIME:24:00 YESTERDAY 11710 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 9563' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 11710 15.79 265.23 11494.83 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 6 6.75 Smith XR+VPS PT5043 3x15 11710 11710 0 N/A NG Clean out run only 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 11 710/11494 MW 11.40 VIS 43 PV 14 YP 19 Gels 5/6/7 FL 4.2 CL- 31500 FC 2 SOL 12.2 SD 0.10 OIL 0.5 MBT 2.5 pH 9.3 Ca+ 280 Alk 0.40 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 1085 @ 11313 @ TRIP GAS 120 CUTTING GAS @ @ WIPER GAS 440 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running in hole from 11180'to 11313'.Kelly up and break circulation.Wash and ream from 11313'to 11438'.Hole tight from 11,320'to 11,358'.Continue to wash down from 11,438'to 11,690'.Pick up and make up one joint of 4"drill pipe from pipe shed.Wash down from 11690'to bottom at 11,710'.Record 1085 units maximum gas(from 11313')at 7463 total strokes.Circulate hole clean(at 380gpm,3000psi,80rpm,4.8K torque).Record 120 units of trip gas(from 11710')at 32158 total strokes.Pump around Hi-Vis sweep and continue to clean and condition hole. Circulate 45624 total strokes from start of washing down to end of hole conditioning.Drop 2.26"drift on 80'wire.Blow down top drive.Pull the last joint of 4"drill pipe out from 11710'to 11690',break and lay down in pipe shed.Continue pulling out of hole on 8 stand wiper trip from 11,690'to 11,187'.Clean rig floor.Run back in hole from 11,187'to 11,690'.Pick up one(1)joint of 4"drill pipe out of pipe shed,make up and run in hole to bottom at 11,710'.Make up top drive and break circulation.Circulate bottoms up(7760 total strokes at 314gpm,221 Opsi,80rpm,4.8k torque). DAILY Record 440 units of wiper gas.Pull the last joint of 4"drill pipe out from 11710'to 11690',break and lay down in pipe shed.Continue pulling out of ACTIVITY hole racking back in derrick from 11,690'to 9,548'.(Observe net 2.3 bbl gain).Monitor well.(Note 1.1 bph flow).Pump 20bbl 12.6ppg dry job. SUMMARY Continue pulling out of hole racking back in derrick from 9,548'to 6089'.(Observe net 2.6 bbl gain).Continue pulling out of hole racking back in derrick from 6089'to 2757'.Pull out of hole,breaking and laying down in pipe shed 68 single joints of 4"drill pipe from 2757'to top of HWDP at 617'.Monitor well.Pull out of hole racking back 4"HWDP and jars in derrick.Break and lay down clean out tools(crossover,NM string stabilizer,bit sub,mill tooth bit).Clear and clean rig floor.Off load unneeded tools.Prep for running 5"liner.Lay down short 4"elevators and bails.Lay down drill pipe make-up tongs.Upload(via beaver slide)false rotary table,dog collar,elevators and slips to rig floor.Rig up Weatherford casing-running equipment.Rig up casing tongs.Rig up fill line to pits.Hold pre-job safety and operations meeting on HILCORP-directed procedures for running 5" DWC 15ppf Production Liner.Pick up,make up(with BakerLok on threads of first four(4)shoe track joints)and run in hole 5"Liner shoe assembly to 159'.Install stop ring and bow spring centralizers on#1,#2,#3 and#4 joints.Fill float joint and verify proper operation of float equipment. Continue running in hole with 5"Production Liner from 159'to 2250.On way in,torque each joint to 8000 ft/Ibs,install 1 bow-spring centralizer on first 26 joints,fill each joint on the fly. CANRIG PERSONNEL ON BOARD: 3 DAILY COST: 2460 REPORT BY: Craig Silva HILCORP ALASKA LLC Swanson River Unit DAILY WELLSITE REPORT SRU 24-15 AI' RIG REPORT FOR:J.Greco R.Pederson DATE:Apr 26,2013 DEPTH 11710 PRESENT OPERATION:Completing cement job for 5"production liner TIME: 24:00 YESTERDAY 11710 24 HOUR FOOTAGE 0 CASING INFORMATION 5"Liner @ 11698' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 11710(Projection) 15.79 265.23 11494.83 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 @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 11710/11494 TVD MW 11.40 VIS 44 PV 13 YP 19 Gels 5/6/7 FL 4.3 CL- 31500 FC 2 SOL 12.2 SD 0.10 OIL 0.5 MBT 2.5 pH 9.0 Ca+ 280 Alk 0.25 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 1830 @ 11708 @ 55 conditioning hole at TD TRIP GAS 1830 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ CONNECTION GAS:AVG PROPANE(C-3) @ @ CONNECTION GAS:CURRENT BUTANE(C-4) @ @ CURRENT AVG BACKGROUND N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running in hole with 5"production liner from 2250'to 2328'.Change out elevators to 4".Make up Baker ZXP liner top hanger-packer assembly(crossover,flex-lock liner hanger,crossover,RS Packoff,seal nipple joint,HRD ZXP packer,PBR,running tool).Fill liner tieback sleeve with"Pal mix"(making sure that the mixture is thin enough to travel past the HRD tool and down to the packoff).Rig down Weatherford tongs and all other casing-running equipment while waiting 30 min for PAL mixture to set up..Kelly up top drive.Pick up and make up one(1)stand of 4" HWDP to 4"HT-38 x 3.5"IF crossover on top of running tool and hanger-packer assembly,and run in hole to 2496'.Circulate one liner volume (1538 strokes).Rig up spinners.Clean and clean rig floor.Continue running in hole with 5"production liner string on 4"HWDP from 2496'to 2915'. Kelly up top drive,break circulation and fill pipe.Continue running in hole with 5"production liner string on 4"drill pipe from 2915'to 9516',stopping six more times(every 15 stands)on way in to kelly up top drive,break circulation and fill pipe(to 3892 total strokes).At 9516',make up top drive, break circulation,stage up to 294gpm/1240psi and circulate drill pipe and liner volume(9083 strokes).Record 1685 units maximum gas.Circulate gas down and break top drive.Pick up and make up crossovers and a 10'pup to top of cementing head and then lay back down in pipe shed.Make up wash tee and hose to cuttings tank.Pick up,make up,and torque together a 15'pup and 5'pup and then also lay back down and stage on DAILY skate.Continue running in hole with 5"production liner string on 4"HWDP from 9516'to 11657'.Pick up and make up single joint of drill pipe out of ACTIVITY pipe shed and continue in hole to 11688'.Pick up and make pre-assembled 15'and 5'pups out of pipe shed and continue in hole to 11708'.Pick up SUMMARY cement head with 10'pup on top out of pipe shed,and install 1502 fittings,flag sub and cement line.Make up cement head to both top drive and pup on top of liner string.Break circulation.Rotate at 15rpm with 5-6K torque while staging pumps up from 123gpm to 216gpm.Circulate and condition for cement job.Record 1830 units maximum(trip)gas at 6542 strokes pumped.Pump 35212 total strokes before beginning cement job. Hold pre-job meeting with all hands on procedures as per Hilcorp for cementing 5"production liner.Schlumberger pumps ahead 5 bbls of water to purge lines and pressure tests cement lines to 4500psi for 5 minutes.Rig pumps 10 bbls of 12.0ppg Mud Push II spacer and then chases with 5 bbls of 11.40ppg mud.Line up and switch over to Schlumberger pumping unit.Pump 101 bbls of 15.3ppg EasyBlok cement(with 1.0ppb CemNet). Shut in drill pipe and open Wash Tee to cuttings tank.Pump water to flush cement from lines.Shut Wash Tee and open valve to drill pipe.Baker rep drops drill pipe wiper dart.Schlumberger displaces cement with 139.5 bbls of 11.4oppg mud.Slow pump rate after 130 bbls away and stop completely at 138.5 bbls without bump.Pump one(1)additional bbl and plug bumps at 139.5 bbls.Pressure up to 3000psi and hold.Check floats, and floats are good.Pressure up to 4200psi and slack off 80K and set hanger.(Shoe is set at 11698.77').Pick up,slack off 80K again and shear lock pins and unlatch from liner.Pick up 4'to verify setting tool is released.Rotate at 20rpm.Slack off to 80K and set ZXP packer.Cement in place at 23:12 hrs.Lose 120 total bbls displacing cement.Blow down cement lines.Rig down cementing head. CANRIG PERSONNEL ON BOARD: 3 _DAILY COST: 2460 REPORT BY: Craig Silva