Department of Commerce, Community, and Economic Development
Alaska Oil and Gas Conservation
Commission
HOME
EVENTS
DATA
Data List
Drilling
Production
Orders
Data Miner
Document Search
REPORTS
Reports and Charts
Pool Statistics
FORMS
LINKS
Links
Test Notification
Data Requests
Regulations
Industry Guidance Bulletins
How to Apply
ABOUT US
History
Staff
HELP
Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
206-061
From:Franger, James M (DNR) To:AOGCC Reporting (CED sponsored); Roby, David S (OGC) Cc:Menefee, Wyn (DNR); Eden, Karsten (DNR) Subject:Well Site Clearance- Long Lake Nos. 1 and 2 Wells Date:Wednesday, September 18, 2019 4:08:38 PM RE: Docket Number OTH-19-028 Well Site Clearance- Long Lake No. 1 (Permit to Drill 203-068) and Long Lake No. 2 (Permit to Drill 206-061) This is in response to the letter dated August 21, 2019 from the AOGCC regarding the condition of Trust land at the above referenced drill sites. These sites do not contain improvements and were left in a condition acceptable to the Trust Land Office. Mike Franger Senior Resource Manager Trust Land Office mike.franger@alaska.gov 907-269-8657 TIDE STATE GOVERNOR MICHAEL J. DUNLEAVY August 21, 2019 Mr. Wyn Menefee Executive Director Mental Health Trust Land Office 2600 Cordova Street, Suite 100 Anchorage, AK 99503 RE: Docket Number OTH-19-028 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov Well Site Clearance — Long Lake No. 1 (Permit to Drill 203-068) and Long Lake No. 2 (Permit to Drill 206-061) Dear Mr.Menefee: In September and October 2005, Aurora Gas, LLC (Aurora) drilled the Long Lake No. 1 exploratory well on Mental Health Trust Land Office (MHT) private property (MHT lease no. 9300023). Aurora plugged and abandoned the well in accordance with the Alaska Oil and Gas Conservation Commission's (AOGCC) regulations, and the plugging operations were verified by an AOGCC field inspector on August 9, 2009 with supplemental information from operator - supplied well abandonment photographs. In July 2006, Aurora drilled the Long Lake No. 2 exploratory well on that same lease. Aurora plugged and abandoned the well in accordance with AOGCC regulations, and the plugging operations were verified by an AOGCC field inspector on September 14, 2006. However, AOGCC regulations require that Aurora conduct site clearance work and successfully pass site clearance inspections. Specifically, the relevant regulations state: 20 AAC 25.170(a) At or after the time that a well drilled onshore is abandoned and before the earlier of one year after the well abandonment or the expiration of the owner's' rights to the property, (1) The operator shall remove the wellhead equipment and casing to a depth at least three feet below original ground level and install a well abandonment marker in accordance with 20 AAC 25.120; and (2) Unless the operator demonstrates to the commission that the surface owner has authorized a different disposition to facilitate a genuine beneficial use, the operator shall ' In this instance "owner" refers to the operators (Aurora), not to the landowner (MHT). Page 2 of 2 a. Remove all materials, materials, supplies, structures, and installations from the location; b. Remove all loose debris from the location; c. Fill and grade all pits or close them in another manner approved by the commission as adequate to protect public health and safety; and d. Leave the location in a clean and graded condition. Aurora reportedly completed most of the activities required under part (1) of this regulation by removing the wellhead, cutting the casing off below ground, and installing a marker plate, but Aurora never arranged for the AOGCC to conduct site clearance inspections before filing for bankruptcy. AOGCC does not know if Aurora complied with requirements (2)(a) to (2)(d), above, or if Aurora otherwise left the well locations in a condition that is acceptable to MHT. Please send a letter or an email to the AOGCC (to the letterhead address or to AOGCC.Reportinggalaska.gov) describing the condition of the well sites and advising as to whether or not Aurora left MHT's property in a manner that is acceptable after plugging and abandoning Long Lake No. I and Long Lake No. 2. If you have any questions, please feel free to contact Dave Roby of our staff at 907-793-1232 or dave.roby@alaska.gov. Sincerely, Daniel T. Se mount, Jr. Commissioner cc: Mr. Mike Franger, MHT Jesse L. Chmielowski Cohimissioner • Okland, Howard D (DOA) From: Bill Penrose [bill@fairweather.com] Sent: Thursday, July 17, 2008 10:39 AM To: Okland, Howard D (DOA) Subject: RE: Long Lake 2 That's correct, Howard. No sidewall cores. Regards, Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, .Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 907-258-3446 -----Original Message----- From: Okland, Howard D (DOA) [mailto:howard.okland@alaska.gov] Sent: Thursday, July 17, 2008 9:16 AM To: Bill Penrose Subject: RE: Long Lake 2 Bill, So, sidewall core was not taken? Please verify. TNX, Howard -----Original Message----- From: Bill Penrose [mailto bill@fairweather.com] Sent: Thursday, July 17, 2008 7:11 AM To: Okland, Howard D (DOA) Cc: Ed Jones Subject: RE: Long Lake 2 Howard, It took us a while to figure this one out, but we finally did it. Aurora Gas only ran a Schlumberger Platform Express (PEX) log in this well as indicated on the Operations summary. The logs listed as being run in Box #21 on the 10-407 indicate that DSI, MDT SWC and CBL logs were also run, but this is incorrect. The reason is unknown - possibly it's an artifact from another completion report. We apologize for the error. Regards, Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 907-258-3446 -----Original Message----- From: Okland, Howard D (DOA) [mailto:howard.okland@alaska.gov] Sent: Thursday, July 10, 2008 8:08 AM 1 oZ. (7 Cn O (~ ] To: Bill Penrose • Subject: Long Lake 2 Bill, Help The completion report for Aurora's Long Lake #2 well (API 50 283 20118 00) indicates that sidewall core was taken. While the AOGCC doesn't require the submission of core chips from sidewall core, we do require a lithologic description of the sidewall core as well as a copy of any core analysis ( porosity, permeability. and fluid saturation). Thank you Howard Okland AOGCC 907 793 1235 2 ~ ~a DATA SUBMITTAL COMPLIANCE REPORT ~ni2oos Permit to Drill 2060610 Well Name/No. LONG LAKE 2 Operator AURORA GAS LLC API No. 50-283-20118-00-00 MD 3843 TVD 3843 Completion Date 7/27/2006 Completion Status P&A Current Status P&A UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey No DATA INFORMATION Types Electric or Other Logs Run: Array induction, Compensated Neutron, Litho-Density, SP, GR/CBL/C Well Log Information: Log/ Electr Data Digital Dataset Log Log Run T e Med/Frmt Number Name Scale Media No (data taken from Logs Portion of Master Well Data Maint Interval OH / Start Stop CH _ Received Comments ED C Las 14277 Induction/Resistivity 102 3843 Open 799 3821 Open Horizon Well Logging, Inc Plus Gtaphics Resistivity, GR, SP, Porosity, Density, Cement Vol Plus PDSand PDF Graphics Well Cores/Samples Information: Name Sample Interval Set Start Stop Sent Received Number Comments ADDITIONAL INFORMATION Well Cored? ~ N S ~ of Wa<< Daily History Received? Chips Received? ~-{-~ Formation Tops ~ N Analysis Y l~ ~~w~~LL Received? Comments: Compliance Reviewed By: Date: !~ • November/6, 2006 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7`h Ave., Suite 100 Anchorage, Alaska 99501 RE: Well Completion Report and Log Aurora Gas, LLC: Long Lake #2 (PTD 206-061) Dear Commissioner Norman, ~~ V Nf~~ 2 q 1.~t~~ Al~sks Di1 ~- Ca: Cony. G~t~~+~~~t~ t~~tohor~~~ Aurora Gas, LLC hereby submits its Well Completion Report and Log for the work performed while drilling its Long Lake #2 exploration well in the Long Lake area on the west side of Cook Inlet. Please find enclosed the following information for your files: 1) Form 10-407 Well Completion Report and L_og 2) Operational Summary 3) Wellbore Diagram as abandoned 4) Electronic copies of well and mud logs in .pds and .las formats If you have any questions or require additional information, please contact me at (713) 977-5799 or Ron Stadem at Fairweather at 907-343-0389. Sincerely, AURORA GAS, LLC ~~ J. E and Jones ' e President, enclosures and Operations cc: Mr. Ron Stadem -Fairweather STATE OF ALASKA ALASKA OIL GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT NUV 2 U ZOU6 AN DS L~' Gas Cons. Commission 1a. Well Status: Oil^ Gas^ Plugged ^ Abandoned ~ 20AAC 25.105 GINJ ^ WINJ ^ WDSPL^ No. of Completions Suspended WAG 2oAAC zs.>>o Other 1b. Well Class: Development ^ Exploratory ^~ Service ^ Stratigraphic Test^ 2. Operator Name: Aurora Gas, LLC 5. Date Comp., Susp., or Aband.: 7/27106 12. Permit to Drill Number: 206-061 3. Address: 1400 W. Benson Blvd., Suite 410, Anchorage, AK 99503 6. Date Spudded: July 10, 2006 13. API Number: 50-283-20118-00 4a. Location of Well (Governmental Section): Surface: 1804' FWL, 2279'FSL, Sec.32, T12N, R12W, SM 7. Date TD Reached: July 24, 2006 14. Well Natne and Number: Long Lake # 2 Top of Productive Horizon: 1804' FWL, 2279'FSL, Sec.32, T12N, R12W, SM 8. KB Elevation (ft): 591' MLLW 15. Field/Pool(s): Long Lake (exploratory) Total Depth: 1804' FWL, 2279'FSL, Sec.32, T12N, R12W, SM 9. Plug Back Depth(MD+TVD): Surface 4b. Location of Well (State Base Plane Coordinates): Nad 27 Surface: x- 243655 y- 2591875 Zone- 4 10. Total Depth (MD + TVD): 3843'MD/3843'TVD 16. Property Designation: MHT 9300023 TPI: x- 243655 y- 2591875 Zone- 4 Total Depth: x- 243655 y- 2591875 Zone- 4 11. Depth Where SSSV Set: N/A 17. Land Use Permit: N/A 18. Directional Survey: Yes No Q 19. Water Depth, if Offshore: N/A feet MSL 20. Thickness of Permafrost: NIA 21. Logs Run: Platform Express: Array Induction, Compensated Neutron, Litho-Density, SP, GR/CBLICCL, DSI, FMI, MDT, Sidewall cores. 22. CASING, LI NER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 13 318" 72# K-55 5 BGL 70' S BGL 70' Driven Grouted after driving 9 5/8" 36# K-55 GL 800' GL 800' 12 114" Cemented to surface 23. Perforations open to Production (MD + TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) None No tubing set 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED NIA 26. PRODUCTION TEST Date First Production: Well not tested or produced Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press, Casing Press: Calculated 24-Hour Rate -•~ Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity -API (corr): 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". None _ C~. ~_~ vE ,i_ ~ ~ °` F 2006 /'~ Form 10-407 Revised 12/2003 ~ ~ ~ 1 -, TINUED ON REVERSE 28. GEOLOGIC MARKERS 29. F ATION TESTS NAME MD TVD Include and briefly summari t results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". None TOP TYONEK FM 1985' 1985' STARICHKOF SAND 6745' 6745' TOP HEMLOCK FM 7448' 7448' TOP WEST FORELAND 7975' 7975' CRETACEOUS 8450' 8450' 30. List of Attachments: Operations Summary, Final Wellbore Diagram 31. thereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Ron Stadem -Fairweather Printed Name: J. Edward Jones /-' Title: Vice President, Engineering and Operations ~ Signature:. ~~.. Phone: 713-977-5799 Date: ~ ~ ~~ a / C/ 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 1a: 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 elevation in feet above mean low low water. 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: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: 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 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none. state "None". Form 10-407 Revised 12/2003 • • OPERATIONS SUMMARY Aurora Gas, LLC Long Lake #2 July 7, 2006 Rig up. Raise derrick, set sub base, spot mud logging unit. July 8, 2006 Rig up. Take on water, N/U diverter, R/U flowlines. July 9, 2006 Rig up. Function test diverter. July 10, 2006 Finish rigging up. Drill mouse hole and set same. P/U 7-7/8" BHA and spud well. Drill 7-7/8" hole to 150'. July 11, 2006 Dri117-7/8" hole from 150' to 571' with a short trip at 507'. Survey: 0.75° at 500' July 12, 2006 Drill 7-7/8" hole from 571' to 800'. CBU and POH. M/U 12-1/4' BHA, open 7-7/8" hole to 12-1 /4" from 102' to 224' . Survey: 2.00° at 800' July 13, 2006 Open 7-7/8" hole to 12-1/4" from 224' to 778'. July 14, 2006 Open hole from 7-7/8" to 12-1/4" from 788' to 800'. Make wiper trip to surface and back to bottom. CBU and POH, L/D drilling tools. R/U and run 9-5/8", 36#, K-55, BTC casing to 800'. C&C for cementing. Cement casing to surface w/ 100 bbls 14.Sppg cement. Displace w/ mud, bump plug w/ 1,000 psi. Check floats - OK. (Received 15 bbls cement back at surface before bumping plug.) R/D cementers, N/D diverter, clean cement out of surface equipment. WOC. July 15, 2006 WOC. Finish N!D diverter, cut off csg, weld on wellhead and pressure test to 1,500 psi. N/U BOPE. • • July 16, 2006 Finish N/LT BOPE. Test to 250/3,000 psi (test annular to 250/1,500 psi). M/U 7-7/8" drilling assy and RIH. Tag up on FC at 711'. Test csg to 1,800 psi for 15 minutes - OK. Drill shoetrack. July 17, 2006 Drill shoetrack and 20' of new hole to 820'. C&C mud to even out at 9.2 ppg. Conduct LOT. Broke down at 220 psi (14.35 ppg EMW). Dri117-7/8" hole from 820' to 1,224'. July 18, 2006 Dri117-7/8" hole from 1,224' to 1,801' with a short trip at 1,408'. Survey: 1.25° at 1,314' July 19, 2006 Drill 7-7/8" hole from 1,408' to 1,942'. CBU and POH. Change bit, RIH, drill from 1,942' to 1,992'. Survey: 3.50° at 1,815' 4.00° at 1,877' July 20, 2006 Dri117-7/8" hole from 1,992' to 2,610'. Survey: 3.25 ° at 2,100' 4.00° at 2,600' July 21, 2006 Drill 7-7/8" hole from 2,610' to 3,096'. Jul 22, 2006 Short trip 10 stands. Dri117-7/8" hole from 3,096' to 3,400'. Survey: 4.00° at 3,094' July 23, 2006 Dri117-7/8" hole from 3,400' to 3,495'. POH. Test BOPE. M/U new bit. RIH. Survey: 6.00° at 3,495' July 24, 2006 RIH. Ream tight spot at 1,938'. RIH to 3,437'. Ream and wash to 3,495'. Drill 7-7/8" hole from 3,495' to 3,843'. • • July 25, 2006 C&C hole. POH to BHA. RIH to TD. CBU and POH. R/U to log. RIH w/ Schlumberger PEX, density tool malfunctioned. Replace density tool, RIH, log hole w/ PEX. R/D Schlumberger, L/D BHA. Survey: 6.00° at 3,843' Juiy 26, 200b Continue L/D tools. WOO. RIH to TD. Mix and pump 37 bbls 15.8 ppg Class G cement plug from TD to 3,400' (plus 40% excess). POH, S/B 770' DP. CBU, POH, L/D remainder of DP. July 27, 2006 L/D DP. P/LT HOWCO retainer, RIH to 740'. Set retainer, stab in, obtain injection rate below it. Un-sting, displace cement to stinger, stab into retainer and pump 18 bbls 14.5 ppg Class G cement below it. Un-sting and lay 6 bbls cement on top of retainer. SB 3 stands, reverse out, POH, L/D remainder of DP. Test cmt and retainer to 1,500 psi for 15 min. P/U HOWCO retainer, RIH, set retainer at 200'. Pump 17 bbls 14.5 ppg Class G cement from retainer to surface. L/D DP, wash out cellar and stack. R/D floor and trip tank. N/D BOPE. Rig released @ 18:00 hrs. r~ Surtace cement plug Top 5' BGL Bottom 200' Cmt Retainer @ 201 Cement plug on retainer, top @ 665 Cmt Retainer @ 7 :J All casing cut off at 5' BGL 13-318", 72#, K-55, Conductor driven to 70' BGL 12'/<" Hole to 800 ft 9 5/8", 36#, K-55, BTC Surtace Casing set at 800' MD. Cemented to surtace. Cement plug across ~ ' casing shoe f/ 740' to 900' i i ~ ~ ~ ~ i i i o i i~ 8-1 /2" Open hole to 3,400' i ~ i i i i i i i i i i ! Wellbore contains 9.3 ppg mud ~ ~ i i i i i i i i i i i i Open-hole cement 4 „ plug: .. Top 3,400' Bottom 3,843' TD .. ~, # - ,, ", ~ '.` ~. •F . •e +. .~ r '. '' f-- TD at 3,843' AURORA GAS, LLC, Long Lake #2 • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Surface Abandonment /Location Clearance /Suspended Well ( Title 20 AAC 25.170 ) FILE INFORMATION: Operator: Aurora Gas, LLC WeII Name: Lon Lake #2 Address: 1400 W. Benson Blvd., Suite 410 PTD No.: 206-061 Anchorage Alaska 99503 API No. 50- 283-20118-00 Surtace Location (From Sec. Line): Unit or Lease Name: Ex lorato North/South 2279 FSL East/West 1804 FWL Field and Pool: Section: 32 Township: 12N Range: 12W Meridian: S Downhole P&A Date: ? 20 AAC 25.120 -ABANDONMENT MARKER: Insp. Date: Surface Monument Approval Date: " Length: _ ft. Post OD: (4" min) Set on (Wellhead, Csg , In Cmt) _ Height above final grade (4' min.): _ ft. Casing stub- ft. below final grade Top of Marker Post Closed ? _ All openings closed ? Inspector: Insp. Date: 9!14/06 Subsurface Monument Approval Date: Marker Plate Diameter: 14 Distance below final grade Level: >3' Thickness: 3/8 " Side Outlets removed or closed: N/A Marker Plate Attached To Conductor Y (Y!N) Cement to surtace (all strings)? Y Inspector: Lou Grimaldi Exact Information Beadwelded Directly to Marker Post or Blind Marker Plate: Insp. Date: 9/14/06 Approval Date: AURORA GAS LLC PTD NO. 206-061 API 50-285-20118-00 LONG LAKE #2 Inspector: Lou Grimaldi Insp. Date: 20 AAC 25.170 -LOCATION CLEANUP: Approval Date: Pit's filled in? Liners Removed or Buried? Debris Removed: Notes: General condition of pad/location: (Rough, Smooth, Contoured, Flat, Natural ) Notes: Type of area surrounding location: (Wooded,Tundra,Grass,Brush,Dirt,Gravel,Sand) Debris on surrounding area: Notes: Access road present? Type road: (Dirt, Gravel, Ice, Other) Condition: Condition of road: Notes: Cellar filled in? Type of fill: Height above grade: Notes: Type work needed at this location: Ins ector RECOMMENDED FOR APPROVAL OF ABANDONMEN Yes No '~ ~ .. ~ii Distribution: Reason: f C.~C~L-~? V\. ` t` ,r r`=1~i ~ ~~-' !-''~- orig -WeII file r~l; rt;' Ci ~a i ~~'~ ~`:- ~i~~5~ ~t;~ c -Operator ~' Final Inspection performed? Yes No c -Database --~'" "--'~ c -Inspector Final Approval By: "~~' ,f;;~.~'' ~ ~ ~s,. C~'i' Title: SL~_> ~ ,~-5L5"`G'C~"-~;-~: Sheet by L.G. 815100 Surf P&A Long Lake 2 09-14-06 LG-1 .xls (If "No" See Reason ) DATE: ~1 -Z Z,-~, I . ~ ; i 9/18/2006 • • Long Lake #2 (Aurora) Surface Abandonment Inspection photos from Lou Grimaldi, AOGCC September 14, 2006 Casing cut-off; cement to surface Nlarker Plate j 3 ~`~4ur~ora Gas, L L C www.aurorapower.com July 28, 2UU6 ~~~ AUG 0 2 2006 Alaska Oi4 & Gas Cons. C~rr?~ission Mr. John Norman, Chair Anchorage Alaska Oil and Gas Conservation Commission 333 West 7"' Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations Aurora Gas, LLC: Long Lake #2 Dear Mr. Norman: This is a report of Aurora Gas, LLC's well operations on Long Lake #2 for the week of July 21 through July 27, inclusive. July 21, 2006 Dri117-7/8" hole from 2,610' to 3,096'. July 22, 2006 Short trip 10 stands. Dri117-7/8" hole from.3,096' to 3,400'. Survey: 4.00° at 3,094' July 23, 2006 Dri117-7/8" hole from 3,400' to 3,495'. POH. Test BOPE.. M/U new bit. RIH. Survey: 6.00° at 3,495' July 24, 2006 RIH. Ream tight spot at 1,938'. RIH to 3,437'. Ream and wash to 3,495'. Drill 7-7/8" hole from 3,495' to 3,843'. July 25, 2006 C&C hole. POH to BHA. RIH to TD. CBU and POH. R/U to log. RIH w/ Schlumberger PEX, density tool malfunctioned. Replace density tool, RIH, log hole w! PEX. R/D Schlumberger, L/D BHA. Survey: 6.00° at 3,843' 10333 Richmond Avenue, Suite 710 • Houston, Texas 77042 • (713) 977-5799 • Fax (713) 977-1347 1400 West Benson Blvd., Suite 410 • Anchorage, Alaska 99503 • (907) 277-1003 • Fax (907) 277-1006 ~~ r ~ ~' • Mr. John Norman ' Page 2 July 26, 2006 Continue L/D tools. WOO. RIH to TD. Mix and pump 37 bbls 15.8 ppg Class G cement plug from TD to 3,400' (plus 40% excess). POH, SB 770' DP. CBU, POH, L/D remainder of DP. July 27, 2006 L/D DP. P/U HOWCO retainer, RIH to 740'. Set retainer, stab in, obtain. injection rate below it. Un-sting, displace cement to stinger, stab into retainer and pump 18 bbls 14.5 ppg Class G cement below it. Un-sting and lay 6 bbis cement on top of retainer. SB 3 stands, reverse out, POH, L/D remainder of DP. Test cmt and retainer to 1,500 psi for 15 min. P/U HOWCO retainer, RIH, set retainer at 200'. Pump 17 bbls 14.5 ppg Class G cement from retainer to surface. L/D DP, wash out cellar and stack. R/D floor and trip tank. N/D BOPE. Rig released @ 18:00 hrs. This is the final weekly report for this well. A Well Completion Report will be assembled and submitted to the Commission within 30 days. If you have any questions or require additional information, please contact me at (713) 977-5799 or Bill Penrose at Fairweather at 258-3446. Sincerely, AURORA GAS, LLC J. dward Jones ice President, Engi Bring and Operations cc: Bill Penrose -Fairweather ~~Q~[~ 0~ COI~SER~A7 • FRANK H. MURKOWSKI, GOVERNOR Edward Jones Vice President, Engineering and Operations Aurora Gas, LLC 1400 W. Benson Blvd, Ste 410 Anchorage, AK 99503 Re: Long Lake Field, Exploratory, Long Lake #2 Sundry Number: 306-255 Dear Mr. Jones: FAX (907) 276-7542 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. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). 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 rehearing. A request for rehearing 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. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DATED this~day of July, 2006 Encl. Sincerely ~~~ ~'~~ RECEIVED STATE OF ALASKA Al.~ OIL AND GAS CONSERVATION COMMON ! ~ ~~~ 2 7 APPLICATION FOR SUNDRY APPROVALS a 2006 20 AAC 25.280 1. Type of Request: Abandon^ Suspend ^ Operational shutdown ^ Perforate ^ Waiver ~ After casing^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension nchorage Change approved program^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ 2.Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Aurora Gas, LLC Development ^ Exploratory ~ 206-061 3. Address: Stratigraphic ^ Service ^ 6. API Number: 1400 W. Benson Blvd, Suite 410, Anchorage, AK 99503 50-283-20118-00 7. If perforating, cosest approach in pool(s) opened by this operation to nearest 8. Well Name and Number. property line where ownership or landownership changes: N/A Spacing Exception Required? Yes ^ No ^ Long Lake #2 9. Property Designation: 10. KB Elevation (ft): 11. FiekllPool(s): MHT 9300023 591' MLLW Lon Lake ex Iorato • 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effectve Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 3,590' 3,590' 3,590' 3,590' None None Casing Length Size MD TVD Burst Collapse $tNCtUral Conductor 70' 13-38" 86' 88' N/A N!A Surface 800' 9-5/8" 800' 800' 3,520 psi 2,020 psi Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): N/A N/A N/A N/A N!A Packers and SSSV Type: N/A Packers and SSSV MD (ft): N/A 13. Attachments: Description Summary of Proposal Q 14. Well Class after proposed work: N/A Detailed Operations Program ^ BOP Sketch ^ Exploratory ^ Development ^ Service ^ 15. Estimated Date for 26-Ju1-06 16. Well Status after proposed work: Commencing Operations: Oil ^ Gas ^ Plugged ^ Abandoned ~ 17. Verbal Approval: Date: 2ti 1-08 WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: Tom Maunder ~`~/~~ 18. 1 hereby certify that the foregoing is true and tmrrect to the best of my knowledge. Contact Bill Penrose 258-3446 Printed Name J ~ Jones Title yice president, En ineeri and O rations Signatur Phone pate ' ZOO ~ 713-97T-0799 COMMISSION USE ONLY Con tuns of approval: Notify Commission so that a representative may witness Sundry Number. ~ ~~ Plug Integrity ~ BOP Test ^ Mechanigl Integrity Test ^ Location Clearance Other. ~~~ ~SC-~f`E~~~Ot'~1~~~( '~ uJC~~SS G.S~-Q~ Subsequent Form Required: ~(~ APPROVED BY Approved by: OMMISSIONER THE COMMISSION Date: Form 10-403 Revised 06/2006 v~GIbAL S SF~, ~U~ ~ ~ 20b6 /~ ~lL? '~ Submit in Duplicate • ~Aur~ora Gas, LLC www.aurorapower.com July 26, 2006 Mr. John Norman, Chairman Alaska Oil and Gas Conservation Commission 333 West 7~' Ave., Suite 100 Anchorage, Alaska 99501 RE: Sundry Application for Plug and Abandonment: Aurora Gas, LLC Long Lake #2 (PTD 206-061) Dear Mr. Norman: Aurora Gas, LLC hereby applies for approval of its plans to plug and abandon its Long Lake #2 exploratory well. The well did not find hydrocarbons in producible quantities. Attached please find Form 10-403 Application for Sundry Approval and a plug and an abandonment procedure that conforms to the Commissions regulations pertaining to this work. If you have any questions or require additional information, please contact me at (907) 277-1003 or Bill Penrose at 258-3446. Sincerely, AURORA GAS, LLC . Edward Jones Vice President, Eng Bring and Operations enclosures cc: Bill Penrose -Fairweather 10333 Richmond Avenue, Suite 710 • Houston, Texas 77042 • (713) 977-5799 • Fax (713) 977-1347 1400 West Benson Blvd., Suite 410 • Anchorage, Alaska 99503 • (907) 277-1003 • Fax (907) 277-1006 • • Plug and Abandonment Procedure Aurora Gas Long Lake #2 1. RIH with open-ended drill pipe and set a Class G cement plug in the open hole from 3,843' TD to 3,400'. (37 bbls cement including 40% excess.) ~- 2. POH and M/U a 9-5/8" cement retainer. 3. RIH and set the retainer in the 9-5/8" surface casing at 740', 60' above the shoe. 4. Sting into the retainer and down-squeeze sufficient cement to fill the 60' of casing below the retainer plus 100' of open hole. • (13 bbls cement including 40% excess in the open hole.) 5. Unsting from the retainer and place 75' of cement (6 bbls cement) on top of it. 6. Pull up 3 stands, reverse out and pressure test the cement/retainer to 1,500 psi for 10 minutes. POH, laying down all but 7 joints of drill pipe. 7. M/U a 9-5/8" bridge plug on drill pipe, RIH and set it at 200'. ~ 8. Release from the bridge plug and displace cement into the wellbore from the bridge plug to the surface. (14 bbls cement.) 9. Rig down and move out drilling rig. 10. Cut off wellhead and all casing strings at least 5' below ground level.' 11. Weld a'/4" thick, 18" diameter round marker plate across the top of the 13-3/8" conductor. The marker plate should have the following information bead-welded onto it: Aurora Gas, LLC PTD No. 206-061 Long Lake #2 API # 50-283-20118-00 Note: Notify AOGCC so a rep can witness installation of marker plate. 12. Remove the cellar and bury the well marker with surrounding fill material up to the level of the surrounding pad. 13. Clean up the drilling location and finish the demobilization of all equipment and materials. Have AOGCC rep approve site close-out. Re: Long Lake #2 • • Subject: Re: Lo~1~~ Lake #? From: Thomas i~~9aunder ~ -tom_rnaunclcr«i;~admin.state.ak.us> Date: Wed, ?G ,lul ?~(i6 16: X1:36 -08©(i To: Bill Penrose <-liill(ci'fairweather.com==~ CC: AOGCC' \orth dope Office <ao'?cc~~ri~dhoe_hay~ci;admin.state.ak.ns> Bill, I have examined the proposed plugging procedure for Long Lake #2. By copy of this message you have "verbal" approval to proceed. I have checked and at this time, there is no Inspector available to witness the placement of the downhole plugs. When it comes time to weld on the plate, please make sure Aurora's representative notifies the Inspector 24 - 48 hours in advance so that witness might be possible. Based on our conversation, I note that since the required deep plug will be set on bottom that you will not be WOC for 12 hours. With the plug set on bottom, it is not necessary to tag provided the plug goes into place without problems. Call or message with any questions. I will look for the paperwork tomorrow. Tom Maunder, PE AOGCC Bill Penrose wrote, On 7/26/2006 4:07 PM: Tom, Attached please find an Application for Sundry Approval to P&A the Aurora Gas Long Lake #2. Please look over the proposed procedure and let me know if we can proceed with it. Upon your verbal approval, we'll get to work at the wellsite and get the paperwork to you in hardcopy with the proper signatures tomorrow. My cell phone number is 259-3113. Regards, Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 E. 88th Avenue, Suite 200 Anchorage, Alaska 99507 907-258-3446 -----Original Message----- From: Thomas Maunder [mailto:tom maunder~~admir..stat~e.ak.us] Sent: Wednesday, July 26, 2006 3:44 PM To: Bill Penrose Cc: Steve Davies; Dave Roby Subject: Re: Long Lake #2 Bill, We have completed an analysis of the logs you sent over. Based on the analysis, an open hole plug is needed. A 200' plug must be set with the top no deeper than 3400'. I don't know what work string you might have. Aurora's option from the regulatory side are: 1. If you set a continuous plug from TD to 3400', it will not be necessary to tag the plug provided it or they go into place with no problems. 2. Set a balanced plug to fill 3400' - 3600'. If a plug is set off bottom, it will need to be tagged. Call or message with any questions. Tom Maunder, PE AOGCC Bill Penrose wrote, On 7/26/2006 8:57 AM: 1 of 2 7/27/2006 9:15 AM Re: Long Lake #2 • Tom, • Aurora Gas' Long Lake #2 is a duster and we're going to P&A it without running a long string. We have 9-5/8" casing set at 800' (cemented to surface) and 7-7/8" open hole from there to 3,600'. I'm working up a surface cement plug and a shoe plug, but need input from the Commission on whether any open hole plugs are needed. We don't see any hydrocarbon zones on the attached mud log, but I don't want to finalize the proposed P&A without running it by you first. Please advise. Thanks and regards, Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 E. 88th Avenue, Suite 200 Anchorage, Alaska 99507 907-258-3446 2 of 2 7/27/2006 9:15 AM • • Aurora Gas, l.LC www.aurorapower.com REGEIV'' July 21, 2006 Alaska Oil & Gas Cans, ~;;~~ , ~rssiun Mr. John Norman, Chair Anchoragw Alaska Oil and Gas Conservation Commission 333 West 7~' Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations Aurora Gas, LLC: Long Lake #2 (PTD 206-061) Dear Mr. Norman: This is a report of Aurora Gas, LLC's well operations on Long Lake #2 for the week of July 14 through July 20, inclusive. July 14, 2006 Open hole from 7-7/8" to 12-1/4" from 788' to 800'. Make wiper trip to surface and back to bottom. CBU and POH, L/D drilling tools. R/U and run 9-5/8", 36#, K-55, BTC casing to 800'. C&C for cementing. Cement casing to surface w/ 100 bbls 14.Sppg cement. Displace w/ mud, bump plug w/ 1,000 psi. Check floats - OK. (Received 15 bbls cement back at surface before bumping plug.) R/D cementers, N/D diverter, clean cement out of surface equipment. WOC. July 15, 2006 WOC. Finish N/D diverter, cut off csg, weld on wellhead and pressure test to 1,500 psi. N/U BOPE. July 16, 2006 Finish N/U BOPE. Test to 250/3,000 psi (test annular to 250/1,500 psi). M/LJ 7-7/8" drilling assy and RIH. Tag up on FC at 711'. Test csg to 1,800 psi for 15 minutes - OK. Drill shoetrack. July 17, 2006 Drill shoetrack and 20' of new hole to 820'. C&C mud to even out at 9.2 ppg. Conduct LOT.. Broke down at 220 psi (14.35 ppg EMW). Drill 7-7/8" hole from 820' to 1,224'. July 18, 2006 Drill 7-7/8" hole from 1,224' to 1,801' with a short trip at 1,408'. Survey: 1.25° at 1,314' 10333 Richmond Avenue, Suite 710 • Houston, Texas 77042 • (713) 977-5799 • Fax (713) 977-1347 1400 West Benson Blvd., Suite 410 • Anchorage, Alaska 99503 • (907) 277-1003 • Fax (907) 277-1006 • Mr. John Norman Page 2 • July 19, 2006 Drill 7-7/8" hole from 1,408' to 1,942'. CBU and POH. Change bit, RIH, drill from 1,942' to 1,992'. Survey: 3.50° at 1,815' 4.00° at 1,877' July 20, 2006 Dri117-7/8" hole from 1,992' to 2,610'. Survey: 3.25° at 2,100' 4.00° at 2,600' If you have any questions or require additional information, please contact me at (713) 977-5799 or Bill Penrose at Fairweather at 258-3446. Sincerely, AURORA GAS, LLC J E and Jones e President, Engineering and Operations cc: Bill Penrose -Fairweather • =- Aurrora Gas, www.aurorapower.com LLC ~ECEd1~E July 14, 2006 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7~' Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations Aurora Gas, LLC: Long Lake #2 (PTD #206-061) Dear Mr. Norman; JUL 1 S 2u Alaska Oil & Gas Cons. "~~:nmission Anchorage This is a report of Aurora Gas, LLC's well operations on Long Lake #2 for the week of July 7 through July 13, inclusive. July 7, 2006 Rig up. Raise derrick, set sub base, spot mud logging unit. July 8, 2006 Rig up. Take on water, N/LT diverter, R/U flowlines. July 9, 2006 Rig up. Function test diverter. July 10, 2006 Finish rigging up. Drill mouse hole and set same: P/U 7-7/8" BHA and spud well. Drill 7-7/8" hole to 150'. July 11, 2006 Drill 7-7/8" hole from 150' to 571' with a short trip at 507'. Survey: 0.75 ° at 500' July 12, 2006 Drill 7-7/8" hole from 57T' to 800'. CBU and POH. M/U 12-1/4' BHA, open 7-7/8" hole to 12-1 /4" from 102' to 224' . Survey: 2.00° at 800' July 13, 2006 Open 7-7/8" hole to 12-1/4" from 224' to 778'. 10333 Richmond Avenue, Suite 710 • Houston, Texas 77042 • (713) 977-5799 • Fax (713) 977-1347 1400 West Benson Blvd., Suite 410 • Anchorage, Alaska 99503 • (907) 277-1003 • Fax (907) 277-1006 • Mr. John Norman Page 2 • If you have any questions or require additional information, please contact me at 277- 1003 or Bill Penrose at Fairweather at 258-3446. Sincerely, AURORA GAS, LLC ---~ J. dward Jones ice President, Engineering and Operations cc: Bill Penrose -Fairweather r ~ ~ a' ~ , ~ ~ I ~ ~ ~ ~ ~ ~5; I i ~~ _ a ALA58~ OIL ~D G~-,S CONSERQAI'IO1~T COMl~'IISSIOI~T J Edward Jones Vice President, Engineering and Operations Aurora Gas, LLC 1400 W. Benson Blvd., Suite 410 Anchorage, AK 99503 • FRANK H. MURKOWSKI, GOVERNOR 333 W. 7`" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Exploratory Field, Long Lake #2 Aurora Gas, LLC Permit No: 206-061 Surface Location: 2279' FSL, 1804' FWL, Sec. 32, T12N, R12W, SM Bottomhole Location: 2279' FSL, 1804' FWL, Sec. 32, T12N, R12W, SM Dear Mr. Jones: Enclosed is the approved application for permit to drill the above referenced exploration well. Because of the potential for encountering shallow gas-bearing sands, gas detection, PVT and mud logging equipment must be fully operational prior to drilling out of the surface conductor pipe. A mud log is required for this well. Samples are not required because drill cuttings samples were acquired across the same geologic section in nearby exploratory wells Long Lake Unit # 1 and Stedatna Creek # 1. This permit to drill does not exempt you from obtaining additional permits or approvals 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. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. 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 Aurora Gas Exploratory Field, Long Lake #2 Permit No: 206-061 in the revocation or suspension of the permit. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). DATED this 7/ day of June, 2006 cc: Department of Fish 8v Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. ~;~~v~ . STATE OF ALASKA ~~ ~/~~Y ~ ~ 2~i ALA OIL AND GAS CONSERVATION COM ION PERMIT TO DRILL ~~~€~~~ ~~~ ~:~ ~~~ GOns. C~.: _. ~n nnr. ~~ nn~ t3~sr~;~sr~,~ 1a. Type of Work: Drill ~ Redrill ^ Re-entry ^ 1 b. Current Well Class: Exploratory ~ Stratigraphic Test ^ Service ^ Multiple Zone Q Development Oil ^ Development Gas ^ Single Zone ^ 1c. Specify if well is proposed for: Coalbed Methane ^ Gas Hydrates ^ Shale Gas ^ 2. Operator Name: Aurora Gas, LLC 5. Bond: Blanket ~ Single Well ^ Bond No. NZS 429815 11. Well Name and Number: Long Lake #2 3. Address: 1400 W. Benson Blvd., Suite 410, Anchorage, Alaska 99503 6. Proposed Depth: MD: 4000' ~/D~ 4000' 12. Field/Pool(s): 4a. Location of Well (Governmental Section): Surface: 1804' FWL, 2279' FSL, Sec. 32, T12N, R12W, SM 7. Property Designation: MHT 9300023 ~ Long Lake (exploratory) Top of Productive Horizon: 1804' FWL, 2279' FSL, Sec. 32, T12N, R12W, SM 8. Land Use Permit: N/A 13. Approximate Spud Date: 6/1/2006 Total Depth: 1804' FWL, 2279' FSL, Sec. 32, T12N, R12W, SM 9. Acres in Property: ~ Acres ~/(~ ~~rt'oL 14. Distance to Nearest ~ Property: ~Q~3pG~t>~, 4b. Location of Well (State Base Plane Coordinates): Nad 27 Surface: x- 243655 y- 2591875 Zone- 4 10. KB Elevation (Height above GL): 591' MLLW feet 15. Distance to Nearest Well Within Pool: 3250' 16. Deviated wells: Kickoff depth: feet Maximum Hole Angle: degrees 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: ,,255 ;a~(`A~' Surface: ~"'ZGO ~~~~ 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) Driven 13 3/8" 72 K-55 Welded 80 0 0 80 80 Drilled and Driven 12 1/4" 9 5/8" 36 K-55 BTC 800 0 0 800 800 90 bbls @ 100 % OH Excess 7 7/8" 5 1 /2" 15.5 K-55 BTC 4000 0 0 4000 4000 163 bbls @ 25 % OH Excess 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 Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee Q BOP Sketch 0 Drilling Program ~ Time v. Depth Plot Q Shallow Hazard Analysis ^ Property Plat ~ Diverter Sketch Q Seabed Report ^ Drilling Fluid Program Q 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: 22. I hereby certify that the foregoing is true and correct. Printed Name J. Edward Jones Signature Date Contact Bill Penrose - 258-3446 Title Vice President, Engineering and Operations Phone 713-977-5799 Date 20-Apr-06 Commission Use Only Permit to ill pp ~/ Number: ~(p' ~ ~ AP N ber: ~p~ 77 ~~ 50- Z~3~w ~ f ~'dd Permit A proval Date: See cover letter for other requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce Coalbed meth fe, gas hydrates, or gas contained in shales: Other: Samples req'd: YesL~ No[V]/ Mud log req'd: YesdNo^ ~~©~ QS~ ~~~ -~LS~ HZS measures: Yes^ No[~ Directional svy req'd: Yes^ No APPROVED BY THE COMMISSION DATE: ~•"' ~ "~ ,COMMISSIONER Form 10-401 Revised 12!2005 (~ ~ ~ ~ ~ ~ ( ~'~ `~ ~"'~~ Sub im t in Duplicate - -~ +, x :' ~; I~~ ~ IIII u R "~ I~i14 s I III u~~ Iul1~~ 'h II I lu' I dull I Ir. li '~'~ s~ oP ~, Ig 'uW ~ k k,. ~u t h ~ r 4 ~. s s x~m ` a=...-. ~ ~ ~ ~ ~ g~ .~-e .,- f d '~ ~ , V ~ G I I 11 rlu ^ h I '~ P [u ~~"~ h4~ 1 I~J~ N I~ ~tll I ,I I~^tt' d "~, `~ ~' ~' e "r V N I r k@I~y~GN l ~ ~~~~ Il~ I~'ul ~ ~#y# ~y~' ~h"^p~' "M ~ - ,.~rV ~I ~k~ r~ al I ' t II I I I~ I u~ I ~ ~ r M ~ v III ~ I pd' I ~ ~ II ~ ~ ' ~ ' ~ I II II I~ ~ d ' ,.' i'~f'. 4 ~a ~ w.u F _ fi I '~ "I~! I r u~y~ 1 Ill I ~, ~~ III"'' I IVI~I ~ r ~ I +' 1 ~ ~ ~d. d I , y ~ ~ r e I " I e N ~ „ s ,~~' I b }Iq~o4 ~ ~ :VII + ^r ~ ~~ ,5 I ~ ~ r~ { + I~~ I ~' W l Iy d ~~'w~~`g P_"" ~~r UW v"y.~ r ~+~ i I;I ' 4~~ ~~ i~ ~ ~. ~a r ,~~~~~~~a ~ ~4~A"hff~ ~ " ~ ~ ~ ~~~~`Iq~;.e ~~~i ~'~~ i I W, * ~ir 111 ~ M~I .~h~ , li~~l~ ~ ni ~ . ~~~,~ _ I i ~ dY ~ "' ~ 0 q, . I I III ~"~ Ny~~d Ir "~ e~ IN~ I d ': ' M I ,, ~ III ,~, ~l + YW t ~ i ~~ ~.I " ~~z ~ ' ~" - . I I II~ y M I P ~. R w L7~ qV JI WI II . I ~ I ~. ''".b1 1` I f I ^ ~ ~ "~ ~ . ~I l 0 N IW WIII~~~, ~ ^= ~ ~ Jr I ~ ~ ~ { ~~ .~ .. '~ ~ ~ . "~ V I ~IIIII~I I'll I M ~ I~II~w INII ;.r r I a ~ ~l ~Pdl ~~~~r a ,1'x~~ G v14~, s,.i u.. ' I ~ q `~ 11 ~ I u ~ M ° F 4~ 'M 11 ~• A ~ I M lary II~IhIINI~ ^ _ ~. L _ . ~ ~_ ~' - ,.~ . .M" a I~',py~.M. ~ „ 1 I ~~ IN ~y ~~~Ilquy i ~ ~..i 1 I s R'' ~ ~~ _ Y t . ,-~ a„. - ~' ~ , `. i. R ~ . ~ rv '~' ~ ~ '}II . r & ~ 'N N x s~, I ~ _ • i - ~~ .~ ~ i,: I . +- ,~ ,, ~~ m~u - ~ . ~~_ h ~ ~ ~ ~ x - " ,. ;i. ~~ ,. ~2~ ' ~ ~ ~ ~ ~. ~ ~- " - .. -. 4 ~ ~ - r' .. = ,c > _ - ~, 1 _ iii _ _ -• " a w~r _` r ,l, N; '. r:,, hl r~ Plp o- "~Ir. ~ w ylV I tl ~~PM ~.~~.I - $ A~~~ 1• !~ ~~ t I I."I ~ l IIII'', ~,' III IdII.l1~ ~~f~ll lh~lm +f µ" - . "~ r ~~ 1 l I~I~~~NtlI'IIh~l~~ ~fi y1~~41Y~Y~~4rIIV~I I~~ ~i~r u II qY N ,~~ u I a n ~ ~ ~ ® ~ = ~ ® ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ - • ! • ~ _ ~ _ - ~ - ~ o ~ ~ ® • Amara Gas, LLC. Drilling Program: Long Lake No. 2 Long Lake #2 Drilling Program 1. File and insure all necessary permits and applications are in place. 2. Mob in rig and RU. Drive 13 3/8" conductor to about 80'. Install 13 5/8" 5M starting head. 3. Rig up diverter and mud loggers Test and calibrate all PVT and gas sensor equipment. Provide 24 hr notice to AOGCC inspectors for chance to witness ~/' diverter test. 4. Notify AOGCC and pertinent agencies when ready to start drilling operations. 5. Prepare spud mud system, weight up to -10 ppg. Load, strap and drift 9 5/8" surface casing. 6. PU 7 7/8" bit and drill pilot hole to 800 ft, using 6 1/4" stabilized BHA. Watch for gas in shallow coals and sands. Attempt to TD casing landing point in siltstone or cTaystone, i.e avoid surface TD in coal bed. If possible, plan TD to correlate with casing tally so when landed, cementing head is at floor level. 7. POOH LD 7 7/8" pilot hole BHA and PU 12 '/4" stabilized BHA with hole opener. Open 7 7/8" surface hole to 12 '/4" to TD achieved in step 6. 8. Condition hole for running 9 5/8" 'surface casing, POOH, LD 12 1/4" BHA. 9. Run and cement 9 5/8" 36 #/ft, K-55 BTC surface casing at 800' installing 1 centralizer /joint centered on 1st 4 joints above shoe, and 1 centralizer every 2nd joint there after, cement to surface. Shoe joint connection at float shoe and float collar must be Baker-Locked. Cement will be single stage with a 12.0 ppg enhanced Type I cement at 100% excess volume for the lead and 14.5 ppg gas block enhanced Type I cement at 100% excess volume for tail. 10. RD cementers, WOC nipple down diverter, cut casing and install 11" 3000 psi wellhead A section. 11. RU and test 11" 3M BOP stack and 5M choke manifold. Test stack and surface equipment to 3000 psi. Pressure test casing to 1500 psi for 15 minutes or as required on approved Permit to Drill. ~o~~--~ ~~~ ~~~+.~k~ss`~ ~h-~ s-~ ~ c 12. PU 8 '/z" bit, bit sub and RIH w/ 6 '/4" collars, drill out float equipment and shoe. Condition /treat mud as needed for cement contamination, drill 20' OH. Pull back into shoe and perform leakoff test with low volume test pump. Record results. TOH, LD 6'/4" collars while POOH. 13. PU drilling assembly w/ 7 7/8" bit and motor. , 14. RIH and drill vertical 7 7/8" hole to 4000' TD, or other as directed by Aurora Gas geologist. While drilling, load, tally and drift 5 '/2" casing on racks. Monitor well and volumes carefully. Be prepared to shut well in and weight up immediately if flow or excessive gas build up in mud is noticed. Anticipated mud weights ~ required are 9.5 - 10.5 ppg. Do not exceed the minimium rock strength determined in step 12. Attempt to TD 7 7/8" production hole to correlate with casing tally so when landing pipe, cementing head is at floor level. Aurora Gas LLC. Page 1 of 10 Rev. 1.0 r • Aurora Gas, LLC. Long Lake #2 Drilling Program 15. Condition hole, short trip and prepare for running wireline logs. 16. POOH, rack back drillstring and RU wireline BOP's, lubricator and logging tools. Log 9-5/8" cased hole section w/gamma ray sensor, Log OH section with logging - suite as directed by Aurora Gas. RD wireline. 17. RIH w/ 7 7/8" drilling assembly to TD and condition hole for running 5'/s" casing. Ensure cementing head has proper connections or proper cross-over is available for quick rig up. 18. POOH while laying down drillpipe and BHA, RU to run casing. Verify cementer's equipment is ready. 19. Change out pipe rams for 5'/z" casing. ~ 20. Run 5 '/2" 15.5# K-55 BTC casing installing 1 centralizer per joint centered on 1st 4 joints above shoe, and 1 centralizer every 2nd joint thereafter to 1 joint inside surface casing shoe. Install centralizers every 3rd joint thereafter to surface. Shoe joint connection at float shoe and float collar must be Baker-Locked. While running casing, fill every 3rd joint. Be prepared to RU to wash to bottom. 21. RU cementers, cement per attached cementing program from TD back to surface. A 13.5 ppg lead and 15.8 ppg Class G tail cement system will be used. Tail slurry to be of sufficient volume to cover 5 '/2" Csg x 7 7/8" Hole annulus to 900 ft. See attached cementing info for preliminary volume estimates. While pumping cement, reciprocate wipe a minimum of 20 feet until cement goes around the shoe. Land casing within 2 - 5 ft of bottom if possible. Displace cement w/ brine to minimize contamination on clean-out. When displacement is finished, bump plug, check floats, drain and wash down stack, check annulus for flow, center casing w/ annular preventer and WOC. After checking to see that floats hold, be sure to relieve pressure inside 5 1/2" casing to prevent formation of a microannulus. 22. RD cementers, nipple down stack, land casing in slips and cut casing. 23. Install 11" X 7 1/16" tubing spool, 7 1/16" X 11" DSA, mud cross and reinstall BOP stack. Pressure test BOP and surface equipment to 3000 psi. Pressure test casing to 2000 psi for 15 minutes and record results. 24. C/O 5'/z" rams to 2 7/8" for workstring. PU bit and casing scraper and RIH with 2 7/8" tubing to top of float collar. After circulating out cement debris, clean brine for perforating by running through centrifuge and filtering. POOH, LD bit and casing scraper. Strap tubing on TOH to validate tally. 25. PU wireline BOP's, lubricator, pressure test all. PU perforating guns, RIH to depth as determined from OH logs and perforate zones of interest. Watch for pressures in casing after shooting. POOH, LD perf gun, RD wireline. 26. RU and RIH with test packer assembly on workstring. Connect to surface flow test equipment. RU and swab in well for flow test, record results. Kill well. 27. Repeat steps 24 and 25 until all zones of interest have been evaluated for production. 28. POOH. Aurora Gas LLC. Page 2 of 10 Rev. 1.0 • aurora Gas, LLC. • Long Lake #2 Drilling Program 29. Pick up completion assembly which will use retrievable type packers, sand exclusion screens, sliding sleeves and other jewelry as necessary. Exact configuration to be determined by test results. See attached well schematic for proposed completion scenario. Packer is to be 75 ft minimum above upper-most screen. RIH with completion and set completion at appropriate depth. POOH. 30. RIH with production tubing and seal assembly, space out and stab into packer, hang off in tubing head and lock down. Install blanking plug in profile nipple at bottom of tubing. Pressure test tubing to 2000 psi, pull blanking plug. 31. RU and swab in well, allow to clean up, record rates and pressures then shut in. 32. Install BPV at surface, nipple down and remove BOP stack. Install wellhead tree. RD and remove all rig equipment. 33. Prepare site for well testing and surface production facilities. 34. File completion reports with proper agencies. Site Access: The Long Lake No. 2 well will be accessible via rehabilitated gravel road running about'/2 a mile northwest from the existing Long Lake #1. Rig: Aurora Well Service, Rig No. 1 (AWS 1) will be used to drill the Long Lake No. 2 well. The Alaska Oil and Gas Conservation Commission has information on this rig and equipment as it has been in use for the last (4) years on other Aurora Gas operations. The pits, BOP system and mud equipment configuration will be the same as those used for previous work. Survey Program: The 12 '/4" surface hole will be drilled vertically. The survey will be acquired while drilling the 7 7/8" pilot hole. The 7 7/8" production hole will be drilled vertically. Wellbore surveys will be taken at maximum of 500 ft intervals, per AAC 25.050 (a)(1). - Logging Program: Aurora will have mud loggers on site for the duration of drilling activities and Schlumberger will provide wireline logging services. A gamma ray log will be run across the surface casing interval. Proposed logs at this time are: Long Lake No. 2 Proposed Logging Program Well Section De the ft OH CH Lo T e 12 1 /4" Surface 0 - 800 N/A: No open-hole logs planned for surface at this time. GR onl in cased hole. 7 7/8" Production Hole 800 - 4000 Platform Express: Array Induction, Compensated Neutron, Litho-Density, SP, GR, DSI and FMI. Also MDT and Sidewall cores. 5 1/2" Int. Cs 800 - 4000 GR/CBL/CCL Surface - TD 0 - 4000 Mud Lo in Services BOP Equipment: Aurora Gas, LLC will use the same BOP system they have been using for the last (3) years which will consist of the following: Aurora Gas LLC. Page 3 of 10 Rev. 1.0 • Aurora Gas, LLC. V Long Lake #2 Drilling Pi°ogram 12 1/4" surface hole: While drilling the 12 1/4" surface hole, a 13 5/8" 5M annular w/ 13 5/8" diverter spool and 10" diverter line will be used. Information on this system is currently on file at the AOGCC. Per 20 AAC 25.035 (c)(1)(A) there is a requirement that the diverter line outlet size be at least 16" in diameter or (B) at least as large as the hole size being drilled. Since Aurora does not have access to a diverter spool with an outlet line ID which fulfills this requirement, a 7 7/8" pilot hole will be drilled to 1000' and then opened to 12'/4" prior to running 9 5/8" casing.f 7 7/8" Production Hole: An 11" 3000 PSI WP Schafco (Shaffer Equivalent) BOP system will be used which is configured with an 11" 3000 PSI WP annular preventer, (1) 3000 PSI WP double gate with a set of pipe rams installed sized to fit the pipe being run and a set of blind rams and (1) 11" 3000 PSI WP rated drilling spool. BOP tests will be performed to 3000 psi. The annular preventer will be tested to 1500 psi. Again, this is the same equipment Aurora has been using all along and information on the system is on file at the AOGCC. Pressure Considerations: 12 1/4" surface hole: The maximum anticipated surface pressure (MASP) for this hole section is based on a 10 ppg formation pressure equivalent at 800' TVD. This results in a MASP of 416 psi. Once the 9 5/8" casing is set, the MASP would be the frac gradient at the shoe which is estimated at 17 ppg equivalent. The MASP for this situation is 707 psi. r 7 7/8" Production Hole: Based on records from. the offset wells at Long Lake #1 and Stedatna Creek #1, a pressure gradient of 0.46 to 0.55 psi/ft can be expected at TD. Using this information, the maximum anticipated bottom-hole pressure to be encountered would be expected at TD, 4000' TVD, with potential formation pressure of 2200 psi.. Maximum anticipated surface pressure "MASP" can be calculated by subtracting the gas gradient of .11 psi/ft from pore pressure gradient of .psi / ft and multiplying by the total TVD depth. , S ~ ~°~~ s dL~ =>MASP = (.55 - .11) * 4000 = 1760 psi Drilling Fluids: The drilling fluids are being furnished by Baroid Drilling Fluids which has extensive experience with wells drilled in this area. An experienced mud engineer will be on site. at all times while drilling to monitor theologies and make recommendations. Surface Hole Recommendations Mud Type: 6%KCI, EZ Mud. Pro erties: Density Viscosity Plastic Viscosity Yield Point API FL pH Aurora Gas LLC. Page 4 of 10 Rev. 1.0 • AZlYOPa Gas, LLC. • Long Lake #2 Drilling Program 0 - 800' 10.0 45 - 65 16 - 23 20 - 30 <5 8.5-9.5 System Formulation: 6%KCI, EZ Mud if no used mud is available Product Concentration Water 0.905 bbl KCI 19.8 ppb (30K chlorides) KOH 0.2 ppb (9 pH) BARAZAN D 1.25-1.5 ppb (as required 25 YP) EZ MUD DP 0.75 ppb (begin with .2 ppb) PAC-L or DEXTRID LT 1.5 to 2.0 ppb ALDACIDE G 0.1 ppb Barite As/if needed BARACOR 700 1 ppb BARASCV D 0.5 b add as the wells uds • Mix in order as listed • Add polymers slowly to minimize fisheyes Recycle fluids as appropriate. No over pressured zones were encountered nor any major hole problems were seen on TMCU No. 1. Occasional short trips will be made to help alleviate any tight hole and hole cleaning problems. Production Hole Recommendations Mud Type: 6%KCI, EZ Mud Properties: Density Viscosit Plastic Viscosity Yield Point API FL pH 800 - 4000' 9.8 - 10.6 40-50 6 - 15 13 - 25 <5 8.5-9.5 System Formulation: 6%KCI, EZ Mud Product Concentration Water 0.905 bbl KCI 19.8 ppb (30K chlorides) KOH 0.2 ppb (9 pH) Barazan D 1.25 ppb (as required 13-20 YP) Dextrid 2-3 ppb EZ Mud DP 0.75 ppb Aldacide G 0.1 ppb Baroid as/if needed Baracor 700 1 ppb Barascav D 0.5 b maintain er dilution rate Drilling Fluid Handling System: Shale Shaker, Mud Cleaner, Centrifuge, PVT monitors Casing /Cementing Program: All casing is new. Analysis (attached) indicates casing program as designed provides adequate safety factors for this well. All casing strings with the exception of the 13 3/8" conductor will be cemented in place using industry standard casing cementing techniques utilizing a casing shoe, float equipment, top and bottom wiper plugs and centralizers installed as needed. Long Lake No. 2, 13 3/8" 72# K-55 Conductor Analysis and Cementing Program Azrroi•a Gas LLC. Page 5 of 10 Rev. 1.0 • AaTrora Gas, LLC. Long Lake #2 Drilling Program The conductor for Long Lake No. 2 will be installed by driving the 13 3/8" pipe to 80' MD or drilled and driven to this depth. Joints will welded together and a drive shoe will be welded to the bottom joint. No cementing is required. Long Lake No. 2, 9 5/8" 36# J-55 BTC Surface Casino Analysis and Cementing Program The 9 5/8" surtace casing will be cemented from the proposed setting depth of 800' MD to surface with a 14.5 ppg Type I, gas block enhanced cement system will be used for the tail slurry with a 12 ppg Type I lead slurry. Where: 12 1/4" OH Capacity = .1458 bbl/ft 9 5/8" 36# Csg x 12 1/4" OH capacity = .0558 bbl / ft 9 5/8" 36# Csg capacity = .0773 bbl/ft OH x Csg: 800 ft x .0558 bbl / ft x 2 (100 % excess) = 89.3 bbls Shoe Jt: 38ft x .0773 bbl/ft = 2.94 bbls Actual volumes to be re-calculated at time of running casing due to potential variation in actual depth from planned. The surface cement system to utilize alias-Block type additive to minimize potential for gas entrainment or channeling. Cement System Weight (ppg) Volume Re uir d~~' Lead - Type G w~2°i° ca c~, 2% Sodium Metasilacate 12.5 45 bbls @ 100% ~~~~ excess °~ 5~~ Tail - Type G 15.8 45 bbls @ 100% excess ...__._•,~ ~!' ~ ~ Please see attached 9 5/8"surface casing analysis and specifications. Long Lake No. 2, 5 1/2" 15.5# J-55 BTC Production Casing Cementing Prouram The 5 1/2" production casing will be cemented in fully from the proposed set depth of 5000' MD & TVD to surtace. A 13.5 ppg lead "G" cement followed with a 15.8 ppg "G" tail cement system will be used. This program is designed to insure the intended perforating /production intervals are isolated with 15.8 ppg "G" cement while the surface casing shoe is covered with a lighter cement still of good compressive strength. Where: 5 %" 15.5# csg capacity = .0238 bbl/ft 5 %"15.5# csg X 7 7/8" OH capacity = .0309 bbl/ft 5 %" 15.5# csg X 9 5/8" 36# annular capacity = .0479 bbl/ft 5 %" 15.5# csg displacement = .0056 bbl/ft Aurora Gas LLC. Pczge 6 of 10 Rev. 1.0 • Aarrora Gas, LLC. Long Lake #2 Drilling Program Lead System: 800 ft x .0479 bbls/ft x 1 (0% excess= 38.3 bbls 7 7/8" OH x 5 %" CSG: 900 ft - 800 ft = 100 ft 100 ft x .0309bb1/ft x 1.25 (25% excess) = 3.9 bbls Total Lead System = 42.2 bbls Tail System: 7 7/8" OH x 5 %" Csg: 4000 ft - 900 ft = 3100ft 3100 ft x .0309 bbl/ft x 1.25(25% excess= 119.7 bbls Shoe Joint = 38' x .0238 bbl/ft = .9044 bbls Total Tail Cmt Volume = 120.6 bbls Cement System Tvpe Cement Weight (ppQ) Lead "G" 13.5 Tail "G" 15.8 \~~"~ S~'~ s' Volume _% Excess ~~ `~` 42.2 bbls@ 25% OH 120.6 bbls @ 25% OH Please see attached 5 1/2" production casing analysis and specifications. Drilling Hazards: Common known hazards for drilling in Cook Inlet Basin are as follows: Shallow gas: Shallow gas is a known hazard which exists throughout the area. The northwest side of Cook Inlet is noteworthy for its shallow gas. All responsible personnel will be made aware and a notice of such hazards will be posted in the rig doghouse. There is no record of H2S in the region; however, a gas detection system capable of detecting H2S as well as methane will be installed on the rig with detectors at the floor level, the shale shaker and in the cellar. .Coal Seams: The Cook Inlet region is rich in coal seams, inter-bedded with the / sands, gravels and shales that make up the Beluga and Tyonek formations. Drilling into a coal seam will appear to be a drilling break when drilled with a roller-cone bit. The major hazard of drilling into a coal seam without observing the proper response is the risk of stuck pipe. The proper course of action for preventing stuck pipe is two-fold. First, prior to drilling, insure the drilling fluid system is up to par, per recommendations from the on-site mud engineer. The second step to successfully drilling through coals in the Cook Inlet area is to not get greedy when coals are encountered. When a coal has been encountered, pull back above coal after drilling into it, and circulate, allowing the coal to stabilize. Re-enter, drill some more, and pull back out again. Continue in this fashion until successfully through the coal bed. The key word in successfully drilling the coal beds is patience. It should be remembered that coals behave plastically, and will flow under the weight of the overburden. The deeper the coal, the more pronounced this tendency becomes. For this reason it is critical to Aurora Gas LLC. Page 7 of70 Rev. 1. (1 Aurora Gas, LLC. Long Lake #2 Drilling Program maintain the proper weight and viscosity of the drilling fluid to properly remove the coal cuttings, and to hold flowing coals in place. Again, heed the recommended drilling fluid program and advice offered by the on-site Mud Engineer. Nearby Wells: The Long Lake No. 1 well is located over 3100' away from the proposed Long Lake No. 2 well at its closest point. No collision risk with this well exists. Other: Sticky bentonitic clays, boulders, lost returns & differential sticking with overbalanced muds and gas influx while cementing or swabbing while tripping pipe. Aurora Gar LLC Page 8 of 10 Rev. 1.0 ~ • Aurora Gas, LLC. Long Lake #2 Drilling Program Lonq Lake No. 2 Summary of Drilling Hazards POST THIS NOTICE IN DOGHOUSE ~l There is potential for abnormal pressured shallow gas. ' ~ There is potential for stuck pipe in coals encountered while drilling from surface to TD. Be extra vigilant while performing hole opener run. Short trip to be performed every 600 ft or 24 hrs, whichever comes first. ~ There is no H2S risk anticipated for this well. ~ Due to potential for shallow gas kick, very little response time will - be afforded to respond. PVT and gas detection systems must be fully operational and functioning at all times, visual flow checks and pit level monitoring are critical. CONSULT THE "Lonq Lake No. 2" WELL PLAN FOR ADDITIONAL INFORMATION. Aurrora Gas LLC. Page 9 of 10 Rev. 1.0 Aurora Gas, LLC. Long Lake #2 Drilling Program Long Lake No.2 Time vs Depth Plot 1000 2000 Depth MD 3000 4000 5000 Vertically drill 12.25" hole to 800' MD, run and cement 9.625" casing, drill out, Leakoff test Vertically drill, TD at 4000' , OH log well, run and cement 5.5" casing, cleanout, perforate, test and complete well. 0 5 10 15 20 25 30 Days Aurora Gas LLC. Rev. 1.0 Page 10 of 10 • A URI~ARA GASH LL. dC', Long Lake ~2 12'/<" Hole to 800 ft ~ Contingency dual packers as needed to isolate potential secondary production zones 13-318", 72# Conductor driven to -80 ft 9 5/8", 36#, K-55, BTC Surface Casing set at -800 ft.. Cemented to surface. 17/8"" Hole to 4000 ft primary target: U. Tyonek ~enforations between 1000' -' end 4000' i 1/2", 15.5#, K-55, BTC production Casing cemented at 4000 ft. i Aurora Gas, LLC Long Lake No. 2 Casing Properties and Design Verification Casing Performance Properties Internal Collapse Tensile Strength Size Weight Yield Resistance Joint Body TVD MD Design Safety Factor* in. l~ b/ft) Grade Cnxn si si 1 000 lbs ft RKB ft RKB T B C 9-5/8 36 J-55 BTC 3,520 2,020 639 564 800 800 23.0 5.0 6.1 5-1/2 15.5 J-55 BTC 4,810 4,040 300 248 4000 4000 4.7 2.9 2.4 * Tensile design safety factor for 5-1/2" and 9-5/8" casing strings is calculated using pipe weight less buoyancy. Burst design safety factor for the 5-1/2" and 9-5/8" casing strings is calculated from the MASP on the inside based on LL No. 1 data and zero backup on the outside at the surface. Collapse design safety factor for the 5-1/2" and 9-5/8" casing strings is calculated at the shoe using the maximum expected mud weight to be used at TD on the outside and the entire cased hole evacuated except for a gas gradient on the inside. • • Casing Design Sheet John Breitmeier Company: Aurora Gas Well: Long Lake #2 Surface: Setting Depth mw cur MW next MD TVD Size Grade WUFt Tension Burst Collapse TVD next 10 10 800 800 9 5/8" J-55 36 564000 3520 2020 4000 Tension: displ ft/ga 1.877 Max stress = Wt. in air minus Bouyant force = 24537.88 28800 4262.12 Tension SF= 22.9849 Burst: For Surface casing max burst stress will equal greater of (A) surface shoe breakdown pressure or (B) required casing test pressure Pshoe= frac grad' 0.052 TVD csg equals 707.2 psi 17 0.052 800 or Ptest= 2000 psi Burst SF (A) = 4.97738 Burst SF (B) = 1.76 Collapse: max Collapse stress= 332.8 Collapse SF = Collapse Str= 6.0697 Max col stress Production Casing Setting Depth mw cur MD TVD Size Grade Wt/Ft Tension Burst Collapse 10.2 4000 4000 5.5 J-55 15.5 248000 4810 4040 Tension: displ ft/ga 4.624 Max stress = Wt. in air minus Bouyant force = 53176.47 Ibs 62000 8823.529 Tension SF= 248000 divided by 53176 equals 4.663717 Burst: For Production casing max burst stress will equal greater of max anticipated formation Pressure or hydraulic frac pressure if applicable Pfrac?? NA or Pfmt= Pf minus Pgas equals 1681.6 psi 2121.6 440 Burst SF = 2.86037 Collapse: max Collapse stress= 1705.6 Collapse SF = Collpse Str/ = 2.3687 Max col stress ,~ • Long Lake # 2 Well p"i' ® rr -r ~ ~ ~- --~~3' d w~. 1 l" X 3M Shaffer Stack t _i 0 000000 0 oooaoo ~^~~n r~r~~ Z~a Aurora Gas, LLC April 28, 2006 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7`~' Ave., Suite 1.00 Anchorage, Alaska 99501 Attn: Tom Maunder RE: Application far Permit to Drill: Long Lake No. 2 Mr. Tom Maunder: • Aurora Gas, LLC, hereby submits a Application for Permit to Drill for an onshore natural gas exploration well on the northwest side of the Cook Inlet. The Long Lake (LL) No. 2 wel! will be located approximately eleven {1 I) miles west of Tyonek, Alaska. Aurora Gas, LLC proposes to spud the LL No. 2 well on or about June 1, 2006. Pertinent information in and attached to this application includes the following: 1) Form 10-401 Application for Permit to Drill - 2 copies 2) Fee of $ 100.00 payable to the State of Alaska 3) Location As-Staked plat 4) Days vs. Depth drilling curve 5) Drilling Procedure G) Wellbore Schematic 7) Pressure and casing design information. 8) Description of the BOP equipment to be used per 20 AAC 25.035 (a)(1) and (b) 9) Cement program description 10) Drilling fluid program description 11) A summary of potential well hazards If you have any questions or require additional information, please cont<1ct the undersigned at 907-277- 1003 or Jesse Mohrbacher at 907-258-3446. Sincerely, J. ward Jones ice President Engin er' g and Operations Aurora Gas, LLC Attachments: cc: Jesse Mohrbacher, Fairweather E & P Services, Inc. ~ • 14111'~/'a Pov~rer FIRSANC OR GEBAK 99520 SKA 2 9 3 8 10333 RICHMOND AVE, SUlTE710 89-6/t252 HOUSTON TX, 77042 7t3-977-5799 5/3/2006 PRY TO THE State of Alaska - AOGCC ORDER OF ** 100.00 ' C)ne Hundred and 00/100**************************~x:,**:*f*.~.,~:**~~:t*::~***:****+*<***+********************************* - DOLLARS ~ '°~~ State of Alaska - AOGCC Ti ~(•°~° MEMO ~ ~ S ~ ~'~~'^ .. _ ~ror II'00 29 3811' ~; L 2 5 200060: 30 2D 389 7u' • • TRANSMITTAL LETTER CHECKLIST WELL NAME ~-y'~ ~~- Z-- PTD# 20 ` ~ a~ ~ Development Service Exploratory Stratigraphic Test Non-Conventional Well Circle Appropriate Letter /Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS TEXT FOR APPROVAL LETTER WHAT (OPTIONS) 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 perforate and 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. ilRY 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. Please note the following special condition of this permit: Non-Conventional production or production testing of coal bed methane is not allowed Well for (name of welly until after (Company NameZhas designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company NameZmust contact the Commission to obtain advance approval of such water well testing ro ram. Rev: 1/25/06 C: \j ody\transmittal_checkl ist WELL PERMIT CHECKLIST Field & Pool Well Name: LONG LAKE 2 - _-Program D_EV Well bore seg PTD#:2060610 Company AURORA GAS LLC Initial ClasslType DEV ! PEND GeoArea 820 Unii ONOff Shore 9~- -Annular Disposal ~~J Administration 1 Perrnitfee attaChed_ _ _ - - _ _ _ _ Yes _ _ _ 2 Lease numberappropriate- - Yes ~~ 3 Unique well-name and number Yes - - - - - - 4 Well located in a_defnedpool- - No_ Exploratory 5 Well located proper distance from drilling urlitboundary_ Yes Only wellin section; 3000'_ away from nearest lease boundary_(open acreage.to E). - - 6 Well located DCOper distance_ from other wells_ _ _ . - - - Yes I J Sufficient acreage available in drilling unit_ _ Yes - _ _ . !i 8 If deviated, iswellbore plat_included _ NA_ Vertical well_ 9 peratoronty affected party- . . Yes 10 9perator has.appr_opriate_bond in force Yes _ _ - - - - 11 Permit_can be issued without conservation prder- Yes ! 12 Permit_can be issued without administrative-approval _ Yes - - Appr Date 13 Can permit be approved before 15-daywait_ - - . - - - - - Yes . - - ------ SFD 5!1212006 14 Well located within area and strata authorized by-Injection Order# (putlO# in_comments)-(For_ NA- - 15 All wells.within 114. mile area of review identified (For service well only). - - - NA_ ' 16 Pre-produced injector. duration ofpre-production less than 3 months(For service well only) NA - I NA_ _ 18 Conductor string_provided ----- Yes - _ 13-31$" @ $0'.- Engineering I 19 Surface casing protects all-known USDWs Yes Surface ~ prooduction-Casing will be cemented back to surface, protecting any freshwater sands: 1 20 CMT vol adequate_to circulate on conducto[ & surf csg _ _ _ Yes - 21 CMT-vol adequate_to tie-in long string to surf CSg_ _ _ _ Yes - _ 22 CMT_will coverall knownproductive horizons_ Yes 23 Casing designs adequate for C,.T, B &_permaf[ost_ Yes ' 24 Adequate tankage-or reserve pit Yes AWS 1 has been used by Aurora fo[ 4 years. 25 If a_ re~rill, has_ a 1.0.403 for abandonment been approved NA_ 26 Adequate wellbore separation proposed Yes _ X 27 If diveder required, does it meet regulations_ Yes Pilok hole planned. - 28 Drilling fluid.program schematic & equip list adequate. Yes Maximum expected formation pressure 10.6 EMW. Planned MW up to 10.6 ppg or as needed._ Appr Date pg gOPEs, do they meet regulation Yes - - - TEM 511112006 'I go BOPE_presS rating appropriate; test to_(put prig incomments) Yes MASP calculated at 1760 psi. 3000-psi BOP testplanned. 31 Choke_manifold complies wlAPI-RP-53 (May $4)_ _ . Yes - , 32 Work will occur without operation shutdown- - - - - Yes _ 1, 33 Js presence_of H2S gas probable No. H2S has notbeen reported in offsetgas production, 34 Mechanical condition of wells within AQR verified (Forservice well onty) - tJA_ . - -- 35 -- -- Permitcan be issued wlohydmgen-sulfide measures Yes None anticipated,_but well will be mudlogged; gas-and H2S sensors will be employed during drilling. Geology ~~' 36 Data_presented on potential overpressure zones - Yes ~ 37 Seismic analysis of shallow gas zorres_ Yes Andy Clifford, Aurora Gas, 513112006:_ No shallow hazards indications seen in any data. Appr Date x,38 Seabed condition survey.(if off-shore) NA. SFD 513112006 139 Contact namelphone for weekly_progress reports. [exploratory only] Yes Ed Jones,_ 713-977-5799 , - Geologic Engineering P Mudlog I mudloggers required because of potential for shallow gas. Samples not required because Long Lake Unit 1, located Commissioner: Date: ~ o rssioner: Date C missi Date 3200' SE, has samples from 365 to 11097' and Stedatna Creek 1, located 1 mile NW, has samples from 120 to 7450'. SFD ~ ~ "~~~'~ 6-/Q,~ ~ Z _,p n2noos r •
