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208-146
MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission DATE:Thursday, March 13, 2025 SUBJECT:Mechanical Integrity Tests TO: FROM:Sully Sullivan P.I. Supervisor Petroleum Inspector NON-CONFIDENTIAL Hilcorp Alaska, LLC ODSK-38 OOOGURUK KUP ODSK-38 Jim Regg InspectorSrc: Reviewed By: P.I. Suprv Comm ________ JBR 03/13/2025 ODSK-38 50-703-20584-00-00 208-146-0 W SPT 5907 2081460 1500 12 12 12 12 127 221 202 196 4YRTST P Sully Sullivan 1/17/2025 Test went well after going over MIT guidance for the new guys as they were only planning to test to 1500 psi. 30 MinPretestInitial15 Min Well Name Type Test Notes: Interval P/F Well Permit Number: Type Inj TVD PTD Test psi API Well Number Inspector Name:OOOGURUK KUP ODSK-38 Inspection Date: Tubing OA Packer Depth 812 1904 1836 1824IA 45 Min 60 Min Rel Insp Num: Insp Num:mitSTS250118165917 BBL Pumped:1.1 BBL Returned:1 Thursday, March 13, 2025 Page 1 of 1 9 9 9 9 9 99 99 9 9 99 9 9 James B. Regg Digitally signed by James B. Regg Date: 2025.03.13 11:46:31 -08'00' MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg / � 'f,'I yl �y/( DATE: Thursday, January 28, 2021 P.I. Supervisor lh���rbl ` ll SUBJECT: Mechanical Integrity Tests Eni US Operating Company Inc. ODSK-38 FROM: Brian Bixby OOOGURUK KUP ODSK-38 Petroleum Inspector Src: Inspector Reviewed By: .pp P.L Supry NON -CONFIDENTIAL Comm Well Name OOOGURUK KUP ODSK-38 API Well Number 50-703-205aa-00.00 Inspector Name: Brian Bixby Permit Number: 208-146-0 Inspection Date: 1/2612021 Insp Num: mi[BDBz 10 1 2 70624 3 8 Rel Insp Num: Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min Well ODSK-38 IType Inj I N 'TVD 1 5907 1 Tubing I47 49 46 45 PTD 1 2081460 Type Test I sPT Test psi 1500 IA sol 1696 611 600 ' BBL Pumped: I -I BBL RetW: I OA 249 353 - 328 322 Interval 4YRTST P Notes: This well is brought online every two week duming pigging operations.' Thursday, January 28, 2021 Page 1 of I • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission DATE: Friday,February 10,2017 TO: Jim Re P.I.Supervisor SUBJECT: Mechanical Integrity Tests CAELUS NATURAL RESOURCES ALASK ODSK-38 FROM: Brian Bixby 000GURUK KUP ODSK-38 Petroleum Inspector Src: Inspector Reviewed By?) P.I.Supry ,j i2(2---- NON-CONFIDENTIAL Comm Well Name 000GURUK KUP ODSK-38 API Well Number 50-703-20584-00-00 Inspector Name: Brian Bixby Permit Number: 208-146-0 Inspection Date: 2/9/2017 Insp Num: mitBDB170209163723 Rel Insp Num: Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min Well ODSK-38 Type Inj W 1TVD 5907 Tubing 410 412 412 412 r PTD 2081460 Type Test SPT Test psi 1500 IA 645 1806 1734 1722 BBL Pumped: 1,2 BBL Returned: I OA 175 268 252 247 Interval 4YRTST 1P/F P *` Notes: SCANNED APR 2 8 Z017 Friday,February 10,2017 Page 1 of 1 s STATE OF ALASKA Q t' i - 2 ,,;7 ALA. OIL AND GAS CONSERVATION COM ! N PERMIT TO DRILL Ai _. 20 AAC 25.005 la. Type of Work: 1b. Current Well Class: Exploratory ❑ Development Oil ❑ 1 c. Specify if well is proposed for: Drill Redrill ❑ Stratigraphic Test ❑ Service ell . Development Gas ❑ Coalbed Methane ❑ Gas Hydrates ❑ Re -entry ❑ Multiple Zone ❑ Single Zone ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket Ei Single Well ❑ 11. Well Name and Number: Pioneer Natural Resources Alaska Inc Bond No. 103655283 ODSK -38i 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 700 G Street, Suite 600 Anchorage, AK 99501 MD: 7364' TVD: 6211' 4a. Location of Well (Governmental Section): 7. Property Designation: Oooguruk KuparukJ er Surface: 2932' FSL, 1134' FEL, Sec. 11, T13N, R7E, UM ADL 355036 ' Ab Z•3 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 63' FSL, 394' FEL, Sec. 2, T13N, R7E, UM 417497 10/17/2008 Total Depth: 9. Acres in Property: 14. Distance to Nearest 286' FSL, 342' FEL, Sec. 2, T13N, R7E, UM 5760 Property: 5674' 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well Surface: x- 469864.14 y- 6031047.99 Zone- ASP 4 (Height above GL): 44' . feet Within QoI: -•-AD 16. Deviated wells: N/A Kickoff depth: 600 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) / .3p,o$ Maximum Hole Angle: 50 degrees Downhole: 3165 psig - Surface: 2482 psig • 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) 24" 16" 109# H -40 Welded 109' Surface Surface 153' . 153' • Driven 12 -1/4" 9 -5/8" 40# L -80 BTC 3028' Surface Surface 3028' . 3000' 374 sx Pe afrost'L'; 2 sx CIass'G' 8 -3/4" 7" 26# L -80 BTC -M 7364' Surface Surface 7364' • 6211' - 360 Class ' ' se.e cad c C et' .O LOW SUMMARY (To be completed for Redrill and Re-Entry Operations) � 19. PRESENT WELL CONDITION ( p ry 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 ❑ BOP Sketch 12 Drilling Program El Time v. Depth Plot ❑ Shallow Hazard Analysis ❑ Property Plat ell Diverter Sketch El Seabed Report ❑ Drilling Fluid Program Q 20 AAC 25.050 requirements ❑ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Alex Vaughan, 343 -2186 Prepared By: Kathy Campoamor, 343 - 2183 Printed Name Joe Polya Title Sr. Staff Drilling Engineer Signature E L ` Phone 343 -2111 Date 9/26/2008 Commission Use Only Permit to Drill API Number: q .�/� /�� Permit Approval ^� See cover letter for other Number: �-- /( 7 / 6 50- /e�-�J ' Cie) Date: r0 • 7. / 11C requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, "' gas ydrates, or gas contained in shales:[ Other: Samples req'd: Yes No Mud log req'd: Yes❑ [v No" `'� H measures: Yes❑ No[/ Directional svy req'd: Yes[�No❑ t k k ©Vr45 ,\ ---\ CANS i 4. N. c -C-E -C / k k. 's APPROVED BY THE COMMISSION /t:7 7 DATE: , COMMISSIONER Form 10 -401 Revised 12/200,5 -' p e e ,,, a ! A I � Submit in Duplic p dp_p� -t 1 !• ;) Page 1 of 3 • Maunder, Thomas E (DOA) From: Vaughan, Alex [AIex.Vaughan @pxd.com] Sent: Monday, October 06, 2008 11:22 AM To: Maunder, Thomas E (DOA) Cc: Hazzard, Vance; Polya, Joe; Campoamor, Kathy; Franks, James Subject: RE: (7" intermediate section cement volumes) Attachments: ODSK 38i Cement Volumes.doc Tom, Below you will find the updated cement volumes for ODSK -38i. Cement Calculations: Casing Size: 9 -518" Surface Casing - single stage Basis: Lead: 100% excess over gauge hole in permafrost, 30% excess over gauge hole below permafrost Lead TOC: Surface Tail: 500' of open hole with 30% excess, plus 85' shoe track Tail TOC: 2528' MD (500' MD above TVD) Total Cement Volume: Preflush 10 bbl water Spacer 40 bbl 10.0 ppg Dual Spacer Lead 250.9 bbls / 340 sx of 10.9 ppg Type "L" Permafrost Cement. 4.15 cf /sk, 20.0 gps water req. Tail 42.7 bbls / 189 sx of 15.6 ppg Premium "G" + adds. 1.18 cf /sk, 5.23 gps water req. Displ 223.2 bbls Mud Temp BHST -55° F, BHCT -60° F estimated Cement Calculations: Casing Size: 7" Intermediate Casing - single stage Basis: Lead: 1336' of open hole 30% excess over gauge Lead TOC: 5027' MD (500' above the Tope of Torok) Tail: 1000' of open hole with 30% excess, plus 85' shoe track Tail TOC: 6363' MD (1000' MD above 7363' TVD) Total Cement Volume: Preflush 10 bbl water Spacer 40 bbl 13.0 ppg Dual Spacer Lead 46.5 bbls / 107 sx of 12.5 ppg Premium "G" + adds. 2.44 cf /sk, 13.74 gps water req. Tail 38.1 bbls / 181 sx 9,);15.8 ppg Premium "G" + adds. 1.18 cf /sk, 5.18 gps Water req. Displ 278.5 bbls Mud Temp BHST -145° F, BHCT -120° F estimated 10/6/2008 Page 2 of 3 • • Regards Alex Vaughan Operations Drilling Engineer PIONEER NATURAL RESOURCES 907.343.2186 (office) 907.748.5478 (mobile) 907.343.2190 (fax) From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Friday, October 03, 2008 12:54 PM To: Vaughan, Alex Cc: Hazzard, Vance; Polya, Joe; Campoamor, Kathy; Franks, James Subject: RE: (7" intermediate section cement volumes) Alex, I acknowledge receipt of your message. You give a total number of sks and also state that there is a lead and tail slurry. This appears similar to ODSK -38 that I am reviewing. Based on the information in the ODSK -38 application it appears that there are different yields for the slurries. Is that correct? Based on the volume (53 bbls) and number of sks (227) given on page 5 in the ODSK -38 application, I calculate a lead yield of -1.31 ft^3 per sks. Is that correct? When lead and tail slurries are planned, the sks numbers should be listed separately on the 401 and in the supporting document. I look forward to your reply. Call or message with any questions. Tom Maunder, PE AOGCC From: Vaughan, Alex [mailto:Alex.Vaughan @pxd.com] Sent: Friday, October 03, 2008 12:24 PM To: Maunder, Thomas E (DOA) Cc: Hazzard, Vance; Polya, Joe; Campoamor, Kathy; Franks, James Subject: Permit to Drill Application for ODSN -37 (7" intermediate section cement volumes) Tom, In reference to Permit to Drill Application for ODSN -37 As discussed via the phone the total cement sacks for the 7" intermediate section will consist of the sum of 139 sks for the lead cement and 181 sks of tail cement. Currently the application has 139 sks total. This value should be replaced with 320 sks total. Cement Quantity, el or sacks "Wing stage data) Driven 349 sx Popirnafrost V.710 sx Class ' 320 sx Class '0' Uncemented Regards, Alex Vaughan Operations Drilling Engineer PIONEER NATURAL RESOURCES 907.343.2186 (office) 10/6/2008 • PIONEER NATURAL RESOURCES September 26, 2008 State of Alaska Alaska Oil and Gas Conservation Commission 333 West 7 Avenue, Suite #100 Anchorage, AK 99501 RE: Application for Permit to Drill ODSK -38 Surface Location: 2932' FSL, 1134' FEL, Sec 11, T13N, R7E, UM X = 469,864.14, Y = 6,031,047.99, ASP4 Pioneer Natural Resources Alaska, Inc. (PNRA) hereby applies for a Permit to Drill a Ion 3 0 , c$ well from the Oooguruk Drill Site (ODS) located within the Oooguruk Unit. The well is designed 9 to be an injection well in the Oooguruk - Kuparuk formation. PNRA requests the permit to drill based on approved Pool Rules. As indicated in the attachments, the drilling program will entail drilling a directional 12 -1/4" surface hole to approximately 3028' MD, / 3000' TVDrkb, where surface casing will be set. A 8 3/4" directional wellbore will be drilled into and set in the Oooguruk- Kuparuk interval at approximately 7364' MD / 6211' TVDrkb. the final TD of the well. The proposed casing program will utilize 9 5/8" surface casing, 7" production casing and an perforated cased hole completion of the 7" hole section. The completion will utilize 3 -1/2" tubing. PNRA plans to implement anaged Pressure Drilling technology (MPD) while drilling the production hole of ODSN- '4t present, PNRA does not intend on drilling with a mud weight . lower than the pore pressure of the exposed formations. PNRA plans to use this technique while drilling the intermediate interval as outlined below. • From the Surface Shoe to below the Base of the Torok Sands o Use -9.2 to 10 ppg fluid while using MPD to control pressure from the surface to -10.5 ppg EMW at the bottom of the hole. • Open formations: • Torok Sands, -8.7 ppg Pore Pressure . 700 G STREET SUITE 600 ANCHORAGE, ALASKA 99501 - MAIN 907 - 277 -2700 - FAX 907 - 343 -2190 Alaska Oil & Gas Conservn Commission • September 26, 2008 Page 2 of 4 • From the base of the Torok Sands to Intermediate Hole TD o Use -10.0 to 11.0 ppg fluid while using MPD to control pressure from the surface to -12.5 ppg EMW at the bottom of the hole. • Open formations: • Torok Sands, -8.7 ppg Pore Pressure • Kuparuk Sands, -9.8 ppg Pore Pressure PNRA plans to use this technique while drilling the production interval as outlined below. • From the Intermediate Shoe to TD o Use -9.8 ppg fluid while using MPD to control pressure from the surface to -10.1 ppg EMW at the bottom of the hole during connections and while tripping . The following documents are attached to this letter and Permit to Drill request: • Flowchart of the MPD system • Procedure of how to change the element in the `rotating head' to maintain well control • Decision Tree for handling a well control event • Data illustrating operational experience from the service provider, Halliburton Utilizing the MPD process allows PNRA to reduce the materials needed for the well and increase the overall safety of the personnel on the development by having less material to handle. Unlike other wells in the Oooguruk Development, it is planned to drill and complete this well in entirety. In the future, PNRA may provide information requesting the permitting of annular disposal of drilling wastes on this well. Based on information previously submitted to the AOGCC and included in the AOGCC Oooguruk Field File, PNRA requests an exemption from 20 AAC 25.035 (c) which requires a diverter system be installed on the well while drilling the surface interval. Please find attached information as required by 20 AAC 25.005 (a) and (c) for your review. Pertinent information attached to this application includes the following: 1) Form 10 -401 Application for Permit to Drill per 20 AAC 25.005 (a). Alaska Oil & Gas Conserv. Commission 1 September 26, 2008 Page 3of4 2) A plat showing the surface location proposed for the well per 20 AAC 25.005 (c) (2). 3) A copy of the proposed drilling program per 20 AAC 25.005 (c) (13) including: a. The drilling fluid program as required by 20 AAC 25.033 b. Complete logging and mud logging operations are planned and descriptions are attached. c. A complete proposed casing and cementing program is attached as per 20 AAC 25.030. d. A description of the procedure for conducting formation integrity tests per 20 AAC 25.035 (c) (5). e. A summary of the drilling operations. f. A summary of drilling hazards per 20 AAC 25.005 (c) (4). g. A wellbore schematic is also attached visually depicting the proposed well. 4) A copy of the Planned Directional Well Path — including travelling cylinder and development layout plots 5) Diagrams and descriptions of the BOP and diverter equipment to be used on Nabors Alaska Rig 19 -AC as required by 20 AAC 25.035 (b) and (c). 6) PNRA does not anticipate the presence of H2S in the formations to be encountered in this well. However, H2S monitoring equipment as specified in 20 • AAC 25.065(1) will be functioning on the rig as standard operating procedure for all wells drilled by that rig. Products for treating H2s contamination in the drilling mud system will be maintained on the ODS. 7) MPD information as referred to above • Flowchart of the MPD system • Procedure of how to change the element in the `rotating head' to maintain well control • Decision Tree for handling a well control event • Data illustrating operational experience from the service provider, Halliburton The following are PNRA's designated contacts for reporting responsibilities to the Commission: 1) Completion Report Joe Polya, Senior Drilling Engineer Alaska Oil & Gas Conserv& Commission • September 26, 2008 Page 4 of 4 (20 AAC 25.070) 907/343 -2111 ioe.polya 2) Geologic Data and Logs Doug Waters, Operations Geologist (20 AAC 25.071) 907/343 -2133 douq.waters(u�pxd.com '1, The anticipated spud date for this well is September 26, 2008. If you have any questions or require further information, please contact Joe Polya at 907/343 -2111. Sincerely, 1 Joe Polya Senior Drilling Engineer Attachments: Form 10 -401 Supporting permit information cc: ODSK -38i Well File • 1 Oooguruk Well Plan Summary: Permit to Drill ODSK -38i — Kuparuk Injection Well Surface Location: 2932' FSL, 1134' FEL, Sec 11, T13N, R7E, UM ASP 4 (NAD27) projection X = 469,864.14 1 Y = 6,031,047.99 Target: 63' FSL, 394' FEL, Sec 2 , T13N, R7E, UM X = 470,612.00 1 Y = 6,033,455.00 1 6018' TVDrkb Bottom Hole Location: 286' FSL, 342' FEL, Sec 2 , T13N, R7E, UM X = 470,664.56 1 Y = 6,033,678.24 1 6211' TVDrkb AFE Number: TBA Est. Start Date: October 17, 2008 1 Rig: Nabors 19AC Operating days: 7 days Drill and Complete (surface only) � r • et-• TD: 7364' MD / 6,211 TVDrkb Objective: Kuparuk Well Type (exp, dev, etc): Dev ment ,Z-",� l) de Well Design (conventional, slimhole, etc): Slim hole — Injector — wp8 /10 Current Mechanical Condition: Well Bay Footing / ODS Ground Level: Elevation above MSL: 13.5' RKB to Ground Level: 44' • Rig Elevation: RKB + MSL = 57.5' Conductor: 153' MDrkb . Well Control: Based on calculations below, BOP equipment will be tested to 4,500 psi. Surface Section: • Maximum anticipated BHP: 1342 psi @ 3000'TVDrkb (Based on seawater gradient of 0.4472 psi /ft) • Maximum surface pressure: 1012 psi @ surface (Based on BHP and a full column of gas from TD @ 0.11 psi /ft) Production Hole Section: • Maximum anticipated BHP: 3165 psi c 6211' TVDrkb (Based on 9.8 ppg Kuparuk pore pressure) • Maximum surface pressure: 2482 psi @ surface . (Based on BHP and a full column of gas from TD @ 0.11 psi /ft) Planned BOP test pressure: 4500 psi (annular to 2500 psi) Planned completion fluid: 10.2 ppg Brine /6.8 ppg Diesel Diverter (see attached schematic) — Note: Requesting Diverter Exemption on a Well by Well Basis): Hydril 21 -1/4" 2M annular BOP Pioneer Natural Resources Last Revised: September 24, 2008 ODSK -38i Permit To Drill Page 1 of 9 • • 1 16" full opening knife gate valve, hydraulically actuated 16" diverter line 5000 psi BOP stack (see attached schematic): Hydril GK 11" 5M annular BOP Hydril 11" 5M single ram BOP w/ studded connections Hydril 11" 5M single ram BOP w/ studded connections Drilling cross 11" 5M x 11" 5M with 2 ea. 3 -1/8" 5M side outlets w /flanged connections 2 ea. 3 -1/8" 5M full opening inner manual gate valves mounted on drilling cross 2 ea. 3 -1/8" 5M full opening outer remote hydraulic controlled gate valves mounted on inner gate valves. Hydril 11" 5M single ram BOP w/ studded connections Formation Integrity Testing Requirements: • Test Point Depth Test Type Minimum EMW 10 -3/4" Surface Shoe Rathole + 20' to 50' from 9 -5/8" shoe LOT 12.0 ppg Drilling Fluids Program: Surface Hole Mud Properties: 13 -1/2" hole Spud Mud Viscosity Interval Density (ppg) (secs) YP PV 10 sec gel API FL Initial 8.8 • 150 -200 35 - 50 15 -25 10 -15 unrestricted Final 9.2 -9.6 70 -100 25 - 35 15 - 25 10 -15 <12 Production Hole Mud Properties: 9 -7/8" hole LSND Viscosity Interval Density (ppg) (secs) YP PV MBT API FL Initial to Below 2 9.2 -10.0 ( -10.5 40 - 60 15 - 25 15 - 20 < 12 6 - 8 Fault ppg via MPD) From Below 2 10.5 ( -12.5 ppg 40 - 60 15 - 25 20 - 30 < 15 3 - 5 (8 -10 Fault to TD via MPD) HTHP) Disposal: Annular Injection: Currently not requested, but may be requested in the future. Cuttings Handling: All Class 2 solids will be processed on the Oooguruk Drill Site by the Grind and Inject facility in the Rig Support Complex and injected down the approved Class 1 / Class 2 disposal well, ODSDW1 -44. Fluid Handling: All Class 1 and Class 2 fluids will be processed on the Oooguruk Drill Site by the Grind and Inject facility in the Rig Support Complex and injected down the approved Class 1 / Class 2 disposal well, ODSDW1 -44. Hydraulics: Surface Hole: 13 -1/2" Interval Pump Drill Pipe AV Pump ECD ppg- Motor Jet Nozzles TFA (in GPM (fpm) PSI emw ( "/32) Surf to BPRF 750 5" 19.5# 115 2100 9.6 N/A 16,16,16,12 .7 BPRF to TD 750 5" 19.5# 115 2400 9.8 N/A 16,16,16,12 .7 Pioneer Natural Resources Last Revised: September 24, 2008 ODSK -38i Permit To Drill Page 2 of 9 • • Production Hole: 9 -7/8" Interval Pump Drill Pipe AV Pump ECD ppg- Motor Jet Nozzles TFA (in GPM (fpm) PSI emw ( "/32) Surf Shoe to 650 5" 19.5# 209 2500 9.8 N/A 6x16 1.18 Base of Torok Base of Torok 650 5" 19.5# 209 3600 11.3 N/A 6x16 1.18 to TD Formation Markers: TVD Pore Press. EMW Formation Tops MD (rkb) (psi) (ppg) Comments Base of Permafrost 1,723 1,656 Top West Sak 2301 2,284 1,028 8.65 Base of fluvial sands Hue 2913 2,887 Tuffaceous Shales 3001 2,973 Surface Casing Point Brookian 2B 4445 4,300 Top Torok Sand 5528 5,028 2,248 8.6 Top of Disposal Zone Base Torok Sand 5957 5,305 Base of Disposal Zone Top HRZ 6676 5,768 2,594 8.65 Base HRZ 6875 5,896 Kalubik Marker 7001 5,977 Top Kuparuk C 7060 6,015 3,065 9.8 Base Kuparuk (LCU) 7113 6,049 TD 7,364 6,210 Pioneer Natural Resources Last Revised: September 24, 2008 ODSK -38i Permit To Drill Page 3 of 9 • . Logging Program: 13 -1/2" Section: Drilling: Mud logging . Dir / GR • Open Hole: N/A Cased Hole: N/A 9 -7/8" Section: Drilling: Mud logging • Dir / GR / Res / Dens / Neut / PWD • Open Hole: N/A Cased Hole: N/A Casing Program: Hole Casing / Weight Grade Conn. Casing Csg/Tbg Top Hole Btm Size Tubing Length MDrkb/TVDrkb MDrkb/TVDrkb 24" 16" 109# H -40 Welded 109' Surface 153' / 153' 12 1/4" 9 5/8" 40# L -80 BTC 3028' Surface 3028' / 3000' 8 3/4" 7" 26# L -80 BTC -M 7364' Surface 7364' / 6211' Tubing 3 -1/2" 9.3# L -80 TSHP/TCII 7364' Surface 7364' / 6211' Casing Properties Size Weight Grade ID Drift ID Conn. Internal Collapse Tensile Strength Yield (psi) (psi) Joint Body 16" 109# H -40 14.67" 14.5" Welded Conductor casing 9 5/8" 40# L -80 8.835" 8.75" BTC 5210 2470 1063M 1063M 7" 26# L -80 6.276" BTC -M 6890 4790 683 M 683 M Pioneer Natural Resources Last Revised: September 24, 2008 ODSK -38i Permit To Drill Page 4 of 9 • • Cement Calculations: Casing Size: 9 -5/8" Surface Casing - single stage Basis: Lead: 100% excess over gauge hole in permafrost, 30% excess over gauge hole below permafrost Lead TOC: Surface Tail: 500' of open hole with 30% excess, plus 85' shoe track Tail TOC: 2528' MD (500' MD above TVD) Total Cement Volume: Preflush 10 bbl water Spacer 40 bbl 10.0 ppg Dual Spacer Lead 250.9 bbls / 340 sx of 10.9 ppg Type "1" Permafrost Cement. 4.15 cf /sk, 20.0 gps water req. Tail 42.7 bbls / 189 sx of 15.6 ppg Premium "G" + adds. 1.18 cf /sk, 5.23 gps water req. Displ 223.2 bbls Mud Temp BHST -55° F, BHCT -60° F estimated Cement Calculations: Casing Size: 7" Intermediate Casing - single stage Basis: Lead: 1336' of open hole 30% excess over gauge Lead TOC: 5027' MD (500' above the Tope of Torok) Tail: 1000' of open hole with 30% excess, plus 85' shoe track Tail TOC: 6363' MD (1000' MD above 7363' TVD) I Total Cement Volume: Preflush 10 bbl water Spacer 40 bbl 13.0 ppg Dual Spacer Lead 46.5 bbls / 107 sx of 12.5 ppg Premium "G" + adds. 2.44 cf /sk, 13.74 gps water req. Tail 38.1 bbls / 181 sx of 15.8 ppg Premium "G" + adds. 1.18 cf /sk, 5.18 gps water req. Displ 278.5 bbls Mud Temp BHST -145° F, BHCT -120° F estimated v/7 • • Cement Calculations: Casing Size: 1 9 5/8" Surface Casing - single stage Basis: Lead: % excess over gauge hole in permafrost + 50 bbls, 30% excess over gauge hole below permafrost Lead TO . Surface Tail: 500' of •en hole with 30% excess, plus 85' shoe track Tail TOC: 252:' MD (500' MD above the approximate set depth • the previous surface casing strings - et at approximately 2500' TVDrkb) Total Cement Volume: P -flush 10 bbl water Spacer 40 bbl 10.0 ppg Dual Spacer Lea 277 bbls / 374 sx of 10.9 ppg ' pe "L" Permafrost Cement. 4.15 cf /sk, 20.0 gps water req. Tail 42.5 bbls / 206 sx of 15.8 • •g Premium "G" + adds. 1.16 cf /sk, 97 gps water req. Displ 2 c bbls Mud Temp BH -55° F, BHCT -60° F estimated During drilling operations, should hole co • itions • dicate that we will have trouble getting cement to surface, a TAM Port Collar may b run the casing string and a staged cement job will be performed, if needed. In the event that ce t is not circulated to surface during the initial surface casing cement job, notify the AOGCC • the upcoming remedial cement work for possible witness of cement to surface. Casing Size: 1 7" Production Casing - Ingle stag - Basis: Tail: 1167' of open hole with 30 °. excess, plus : shoe track Tail TOC: -6560' MD (804' above the shoe) - 501 MD above the top of the Kuparuk Lead TOC: - 5027'MD -500' D above the top of th= Torok (disposal well within 1/2 mile) Total Cement Volume: Preflush 10 bbl water Space 40 bbl 11.5 ppg Dual Space Lea• 53 bbls / 227 sx Premium "G" adds T ,i1 31 bbls / 133 sx of 15.8 ppg Pre ium "G" + adds. 1.18 cf /sk, 5.18 gps water req. Displ 278 bbls mud Temp BHST - 165° F at 6100' TVDrkb, -13 ° F BHCT This well is inside t - 1/2 mile radius around the disposal well at the inte ection with the Torok disposal zone SUP P D D \Oh Pioneer Natural Resources Last Revised: September 24, 2008 ODSK -38i Permit To Drill Page 5 of 9 • • Pioneer Natural Resources Well Plan Summary Drilling Operations Pre -Riq Work 1. 16" Conductors have been set and the Well Bay modules have been placed. 2. The Oooguruk Drill Site Class 1 / Class 2 Disposal Well, ODSDW1 -44, has been drilled and commissioned for disposal. Riq Activity: Drill and Complete 1. MIRU Nabors 19AC over pre - installed 16" conductor casing. 2. Nipple up spacer spools and riser. Note: In the cover letter for this permit to drill request, a diverter waiver is also requested based on information turned in previously. 3. MU 12 -1/4" Directional Drilling, MWD /LWD assembly. Drill surface hole to the casing point at -3028' MD / 3000' TVDrkb, making wiper trips as necessary. Circulate and condition the hole to run casing. POOH. 4. Run and cement the 9 5/8 ", 40# surface casing Note: A Port Collar may be run based on hole conditions at Company Rep discretion. 5. Ensure floats are holding. WOC if needed. 6. ND Riser, NU BOPE and test. Test BOPE to 250/4500 psi 7. Close blind rams and test 9 5/8" casing to 4500 psi for 30 minutes -- chart and send to Operations Drilling Engineer. 8. MU 8 3/4" directional drilling, MWD /LWD assembly. RIH and cleanout the casing to landing collar. Displace the well over to the production hole drilling fluid. 9. Drill 8 3/4" production hole to casing point at -7363' MD/ 6211' TVDrkb. Note: Perform short trips at 1500' intervals or every 12 hours, which ever comes first to gauge hole conditions. Short trip frequency can be reduced or extended based on results of each subsequent short trip. At TD make a wiper trip to the surface casing shoe. Circulate and condition the drilling fluid to run casing. POH standing back some of the 5" DP and LD the rest of the 5" DP or per the pipe management plan vet to be developed by core rig team on location. 10. Change one set of pipe rams to 7" and test BOPE as required. 11. Run and cement the 7 ", 26# production casing. Bump the plug with corrosion inhibited sea water and increase the pressure to 4500 psi for 30 minutes, chart and send same to Operations Drilling Engineer. Release pressure and ensure floats are holding. Note: If plug is not bumped, the casing will be tested by closing blind rams after BOPE Test. 12. Change pipe rams to 3 1/2" and Test BOPE to 250/4500 psi - Notify AOGCC 48 hours in advance of test. 13. RIH with 3 1 /2" tubing with perforation charges on bottom of string. .,. 14. Drop ball and rod, set and test packer 15. Install TWC. d 1 16. ND BOPE, NU tree and test to 5,000 psi. 4TL, . 17. Pull TWC. 18. RU Slickline and pull the Dummy Valve from the upper GLM.' _ 19. Reverse circulate corrosion inhibited brine and diesel to freeze protect the well to -2000' TVD and allow to u -tube. 20. RIH with Slickline and set dummy valve in upper GLM 21. Pull the ball and rod and pull the RHC -m plug with Slickline Pioneer Natural Resources Last Revised: September 24, 2008 ODSK -38i Permit To Drill Page 6 of 9 • • 22. Fire perforation guns and drop to bottom of well 23. RDMO to next well. l i Pioneer Natural Resources Last Revised: September 24, 2008 ODSK -38i Permit To Drill Page 7 of 9 • • Casing Shoe Leak Off Test Procedure: 1. After testing BOPE, pick up the drilling assembly and RIH to the float collar. Circulate to consistent mud weight and rheology. 2. Shut in with the pipe rams and test the casing to the required test pressure. Record the volume of mud required and the corresponding pressures in 1 /4 bbl increments. When the design pressure is reached shut in the well and record the shut in pressure for 30 minutes. 3. Bleed off pressure while taking returns to a calibrated tank and record volume recovered. 4. Drill out the shoe track. Drill 20 ft of new hole and circulate the hole clean with consistent mud weight in /out. Pull up into the casing shoe. 5. Perform a Leak Off Test (or Formation Integrity Test): • Calculate the required test pressure to reach leak off (or formation integrity test limit) with the actual mud weight and the estimated fracture EMW. • Plot the casing test data and the calculated leak off on appropriate scale coordinate paper. As a guide, use the data from the casing test to determine the approximate volume of mud required to reach the calculated LOT /FIT. • Shut the well in. R/U the test pump. • Bring the pump on line at 0.25 — 0.50 bpm. Maintain a constant rate. • Record the pressure for every 1 /4 of a bbl pumped. • Continue pumping until the pressure vs. volume curve breaks over indicating leak off. Note: For FIT, do not take to leak off • Discontinue pumping and shut in the well. Record the shut in pressure in 1 minute increments for 10 minutes or until pressure shows stabilization. • Bleed off the pressure and record the volume of mud recovered. • Plot the data to determine the LOT /FIT pressure at the shoe as EMW. • Submit the test results to the Pioneer drilling engineer for distribution as required. Pioneer Natural Resources Last Revised: September 24, 2008 ODSK -38i Permit To Drill Page 8 of 9 • 0 ODSN -43 Drilling Hazards and Contingencies POST THIS NOTICE IN THE DOGHOUSE Well Control • Prior to drilling into the Kuparuk, hold a pre - reservoir meeting to outline heightened . awareness and kick detection. o Following the Kuparuk penetration, pick up off bottom, shut off the pumps and perform a flow check to verify there isn't any overpressure. To date, no increase in pressure has been seen. Hydrates and Shallow gas • No hydrates are expected in this area. Lost Circulation /Breathing /Formation Stability /Stuck Pipe Events • Breathing may be seen while drilling the Hue shale. Minimizing swab and surge on the 1 formation is critical to reducing the impact of breathing in the wellbore. Breathing was seen in the ODSN -40 well, but only after substantial time in trying to solve the lost circulation problems in the fault seen in and below the Torok Sands. • Lost Circulation was seen in drilling with MOBM in the abandoned wellbore of ODSN -40. The 1 losses continued after swapping the production hole drilling fluid over to SWBM. At this time, assume that the fault drilled in the production hole will have lost circulation issues and follow . the Decision Tree as required. • During the attempt to retrieve a fish from the ODSK -33 well, an un- centralized BHA got stuck from differential sticking across the Torok due to the increase in mud weight needed to hold back the shales below. Differential sticking indications were not noted with the drilling BHA and drill pipe. In any event, keep the pipe moving and avoid allowing the pipe to remain stationary any longer than necessary to minimize the chances of differential sticking. • There is a small section of formation above the Top of the HRZ that is volcanic in nature (TUFFS) and can either have "glassy" material, swelling clays or both while drilling, which produced a pack off on ODSK -33 and ODSN -45. During the sidetrack of ODSK -33, this zone was not problematic. In any case, close attention while drilling this interval is advised. Kick Tolerance/Integrity Testing Kick Tolerance / Integrity Testing Summary Table Casing set / Interval Maximum Influx Mud Exp Pore Min LOT / FIT Volume Weight Press 9 5/8" Production / 8 3/4" hole Infinite 9.2 2261 12.5 ppg (LOT) to the Torok Sands 9 5/8" Production / 8 3/4" hole 82 11 3065 n/a to the Kuparuk Sands NOTE: All LOT / FIT will be taken with a minimum of 20 -ft and a maximum of 50 -ft of new hole drilled outside of the previous casing string Hydrogen Sulfide • The Oooguruk Drill Site is not designated as an H site, however Standard Operating Procedures for H precautions should be followed at all times. Faults • A seismically visible fault is expected to be crossed and sub seismic faults with throws <25' . may be encountered. Losses may be associated with these faults. I Fault Location MD TVDrkb Throw Direction Uncertainty Production Hole 3985 3904 -25' Down to the East +/- 300' MD CONSULT THE ODS DATA SHEET FOR ADDITIONAL INFORMATION (still in development) Pioneer Natural Resources Last Revised: September 24, 2008 ODSK -38i Permit To Drill Page 9 of 9 ODSK -38i Kuparuk Injection Well Proposed Completion Well Head: 9 5/8 ", 5K, VetcoGray Tree: 3 -1/2 ", 5K, Horizontal ot 16" Conductor 153' MDrkb / 153' TVDrkb 3 -1/2" ScSSSV, 2.813" ID @ -750' 9 5/8 ", 40# L -80 BTC, 8.75" ID 3028' MDrkb / 3000' TVDrkb 3 -1/2" MMG GLM © 3430' MD / 3330' MDrkb 3 -1/2 ", 9.3# L -80 TSHP Estimated Top of Cement © 5027' MD / -5527' TVDrkb 500' above top to Torok 3 -1/2" MMG GLM @ 6290' MD / 5510' MDrkb O O • 3 -1/2" Sliding Sleeve © 6988' MD / 5950' TVDrkb X Nipple, 2.813" ID 7" x 3 - 1/2" Retrievable Packer 0-7060' MD / 6015' TVDrkb X Nipple, 2.813" ID w /RHC -M Plug ■ ■ XN Nipple, 2.725" ID Nogo 7364' MDrkb / 6210' TVDrkb • @ 7092' MD, 50 degrees woomenommo 7 ", 26# L -80 BTC -M, 6.276" ID Date: Revision By: Comments F 9/26/2008 Alex Vaughan Proposed Completion , ODSK -38i Injector Well Schematic .PIONEER NP.TUP.AL RESOURCES A f H 1 it 1 D 1 F 1 F I G I II MEE I ixi D4 1 :' Rai - Nair lai *rani la Ta FMarr • F1eI ®g BTAJI PIPE — 1 "0 MIWF�D © O C� TANKS – At ► I BBL .. MLO ►. Nu_ ► O V Q(T a —0 O CE - : ® Nu CEMENT LNT : = OB 0 Y Y 0 Q '® L. myon 2 2 • V 0 ® HA1111URTON — • " m, a APO CHOW _ Rate Cal /min ( Q [I}11 I ID al /sik I !� 1::::1 � I ` �� mss' t ` la Mkt, RIG 7 1 3 D4 1• "" An '70 I g�Iar Q © 0 le 3 FCC. z O id i IVD RAYY.AVE nv – i7 ®Q g g FLEE MG - PIMP 1 ] N ,_,,�/ ®I/ @ O Ftic Pi Vale �IfIfa0Rl9 QLIr'� I--10 -4 r Al r — AMC I 5K Q :II ► mixes 13 n d ©: , a 4 RINGERS - O ® o ® �® tM SEPARATOR 1 co FCLL USE ; ��� J Z I I [� pCJ ® O O i J 1. Pipe Rona O 5 M 4A 5 1 t Wm; Anrpk. Iw wpm 5 left mare b UM gel mare 1 FLOMIFE 117 SHAKERS L C 0 E N 0 I Ilunpdirurmicam+. arereimitr� rALAArr•z�le a riNAlo- nwriat frtiOUiwOTrCOrr1A'Y.uua MOa�GRf�TOFll� .W7NTE YOYiMYKGT1i1w6�P 1.`�IlfafaENA WYNQlillalwlQllRIX FRED CHEW 44- VCRNALLY a_05Ea VALVE a ESD VALVE — OFFi FFFFFFFFF MIN KINVON Im 12 AVe • OE 7G SENSOR ANC CAUCE MI•∎ ∎•• If mulmmi HALLIBURTON ENERGY SERVICES EMI. ,, ,er 15 Km as g MANUAL CNCKE -D4- VALVE re COPo IXIS NETER Id I�LIW VALVE 1i � �• .Fi. 5RIEtl a Aw a T' Meow Nol dIlmaue11 8 _ F_im1�•— — OI8 SicllF�llPawnsMeg AUTDGIOSE -4- HCRVALVE 69 MINE ICU •••• • MINN VALVINLINNIIIIIII M ORAN(W _ 1_�.. -11•■ slzE l'itL-.�,., , -N- CHECK VALVE 314- PEEDLE VALVE pa9 ONIFlCE KE1ER EM•=EM•� *�^ 'aA may I V RLV, 01924Pni11 511E IAN FIR !a I ■■■ mud NONE ICBM I+ CF • A I B I rt F n I F I F I A I H • Installing of RCD Flow Diverter Body: • Lift and place RFD body onto top flange of RIG BOP stack using safest method available to ensure Body & fittings are not damaged. • Nipple up any adapter spools, studded adapters • Install all required valves and flow line components as required. • Install equalization lines as required. • Check alignment of the BOP stack to ensure the stack is in alignment with the Halliburton RFD. • Pressure test BOP to oil company policy. , Installation of Bearing Assembly: • Run pipe into hole two stands off bottom or to company program. • Install stabbing mandrel to bottom of stand, Grease stabber, and stab through bearing. • Lower stand with bearing assembly and through the rotary table. • Lower drill string until bearing assembly is seated properly in the RFD body. • Install oil supply lines • Start up HPU and start drilling. Change RCD Bearing Assembly Procedure • 02/09/2008 • Good communication between the RCD Operator and the drill floor is CRITICAL. Clear instructions must be relayed between the RCD Operator (working on the RCD beneath the drill floor) and the Driller, MPD Supervisor and air hoist operator. • In preparation for changing out a bearing seal assembly, ensure the 6 ft lifting slings, stabbing stand and starting mandrel are all on the drill floor • The RCD 5000 is a passive head, meaning it closes solely on well bore pressure. • It is rated for 3500psi at 5ORPM in a dynamic state and 5000psi in static mode. • To change out the RCD Bearing Assembly the stack should be in a clean and safe working condition with a STURDY WORK PLATFORM from which to work off. NOTE: If the bearing assembly is pulled, but not being changed out, and the forward plan is to re -run it, it must always be positioned at the bottom of a stand for racking back, or removed completely. 1. Position the element in the centre of the top single, and stop rotating. 2. Stop injection. 3. Close the Annular. 4. Bleed off standpipe pressure as per Connection Procedure. 5. Monitor wellhead pressure. 6. Bleed off pressure between annular and rotating head through MPD choke. Bleed off remaining pressure through to Rig shakers. 7. Open bleed valve on rotating head body, to confirm there is no trapped pressure. CONFIRM 0 PSI WITH MPD SUPERVISOR Note: Do not unlatch bearing assembly without checking for trapped pressure. 8. Stop cooling system, and remove circulating and pressure lines on the rotating head assembly. 9. Open clamp on rotating head body. 10. Remove the rotary table split bushing. Note: NEVER Connect lanyard to ANY portion of the RCD Note: NEVER put your body between the RCD and the rotating table 11. Install 6 ft lifting sling on rotating head assembly lifting eyes. 12. Slowly lift drill pipe, tagged line and seal bearing assembly approximately 3 ft above table. Move bearing assembly directly below top tool joint. 13. Reinstall rotary table split bushing. 14. Set drill pipe slips. Remove elevators. 15. Install 18 ft lifting slings thru the bell eyes, hook slings on the rotating head assembly lifting eyes and remove rotating head assembly. 16. Screw top drive into the pipe. Strip out single thru the Annular. 17. Break connection on the first single. Screw starting mandrel on the single. 18. Position bearing assembly into 3 ft by 16" stabbing casing on rotary table next to stump. 19. Lubricate the starting mandrel and inside of rubber, then push the single through the rubber until the mandrel is completely through the rubber. Change RCD Bearing Assembly Procedure 02/09/2008 20. Remove starting mandrel to make up top drive and single to drill string. 21. Pull out of the slips and remove split table bushing to allow the rotating head assembly to pass through the rotary table. BE CAREFUL TO NOT DAMAGE HYDRAULIC CONNECTIONS. 22. Lower the drill string down stopping to position the anti - rotation block RCD clamp. (If this is not in the correct position the clamp can't be closed properly). 23. Finish lowering the rotating head assembly in to the bowl and close clamp. 24. Connect lubricating lines to the rotating head. 25. Restart HCU and confirm differential pressure is 150- 200psi higher than well bore pressure.. 26. Pressure up to below BOP pressure, slowly with the cement pump below the RCD via the primary MPD line. Note: Ensure pressures are equalized on the pressure gauges and they don't exceed rotating head limitations (5000 psi). 27. Inflow test the RCD element, seals and housing. 28. Open the annular. 29. Continue with MPD operations. i Well Control Decision Tree NDICATIONS OF AN UNSTABLE WELL; • INCREASED or REDUCED MUD FLOW • PIT GAIN or LOSS • CIRCULATING PRESSURE DROP • GAS or WATER CIJT MUD I' w LOSS GAIN NORMAL Lasses di • Gain <#Qbbls, OPERATIO above normal tren Gas <15% Normal mat = +r_ 1 bblth • Close BOP v, YES - HAND OVER • Open Rig Cho ke HCR a,tcf Space out tool joint TO NABORS line to closed Rig Choke • Shut down the mud pumps according to MPD • Obseerve BBOP for 10 min procedure & soa pttire friction pressure, z,trlising MPL? choke __] ,--/"NNN, • Oaserve? RCD Pressure for 10 rnir,s Evaluate Kirl Mothod above kr Off bottflm autochoke ,. press , . 1 Ny, Losses ON BOTTOM I Aci:Nptable NO • Adjust choke back pressthe to SICP • N. NO • Row Row check well � icr Circulate mil kick • Lower WHP to previous Circulate rac YE keeping constant BHP • Row Check Kick? Drillers method Have there I been losses? YES • Resume circulation OFF BOTTOM N. • Circulate bottoms up - closely monitor , 'y flow rate. pit volumes & gas levels NO Continue • Be prepared to Sttut =in on any other Proceed to operations Ref indications of influx " Bullhead Lost Circulation YES decision tree Monitor & adjust system -- Y ES Well Stable? as required to investigate .t l v,Ira:ate rer,in stability transferrer ^u frcxr, Continue %Ne contr to monitoring well MPD NO stahle? • Strip to bottom & Evaluate; Continue drilling ahead YES circulate out Kick • Drilling ahead Evaluate further • • Bullhead. at off Bark �` procedures bottom position Pres.Sr,n= • Mid Weight HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History The following case histories summarise the Underbalanced & Managed Pressure Drilling Projects Performed by Halliburton GBA. a In the table below the UBD and MPD projects are summarized which are desc ribed in further detail in the following pages. es. We have P worked in 14 countries drilling 234 wells to date. Total incidents over the past 10 years have been limited to 10 reportable. There have been 3 mechanical incidents involving RCD element leak/failure, 6 minor injuries (3 finger, 1 head, 1 knee, 1 rib) all none recordable, and one environmental spill that was contained. Note that none of these incidence resulted in lost time, hindered operations or had environmental impact. We attribute this low incidence rate to HMS /HSE policies /practices and competence of our • personnel. • country • °Company LL field (Number of Wells to dat4Start EEnd 9UBDA4PD ■ On1OKshor4JRig or CTD QOngoing? E India Reliance Industries Ltd NEC 1 1- Oct -07 1- Dec -07 UBD &MPD Offshore Rig ongoing USA American Oil and Gas Powder River Basin 3 1- Apr -07 1- Feb -08 UBD Onshore Rig End Indonesia EMP Sepanjang Island 2 10- Nov -04 30- Nov -04 UBD Onshore rig End Mexico Pemex (ride, Samaria, Cunduacan, Juj 77 1- Jun -04 1- Aug -08 MPD Onshore Rig ongoing • • Mexico Pemex Iride, Samaria, Cunduacan, Juj 12 1- May -06 1- Aug -08 MPD Onshore Rig ongoing • Mexico Pemex (ride, Samaria, Cunduacan, Juj 34 1- May -06 1- Aug -08 MPD Onshore Rig ongoing • Mexico Pemex (ride, Samaria, Cunduacan, Juj 3 1- May -06 1- Aug -08 MPD Onshore Rig ongoing • Thialand Hess Phu Horm 6 1- Mar -03 1- Dec -07 UBD Onshore Rig End • • • Austrailia Santos Strezelecki, Marabooka, Della, I 4 1- Sep -04 1- Dec -04 UBD Onshore CTD End • Algeria Sonatrach 10 1- Mar -03 1- Mar -06 UBD Onshore Rig End • • Saudi Arabia Aramco Khurais 1 1- Nov -06 1- Aug -08 UBD Onshore CTD ongoing UAE Margham Margham 5 1- Apr -06 1- Aug -07 UBD Onshore CTD ongoing UAE BP Sajaa 40 1- Mar -03 1- Mar -06 UBD Onshore CTD End Norway Statoil Gulfaks 3 18- Apr -05 19- May -05 MPD Offshore Rig End • • Norway Hydro Grane 4 7- Jan -08 1- Aug -08 MPD Offshore Rig ongoing Norway Statoil Gulfaks 1 6- Dec -06 8- Aug -08 MPD Offshore Rig ongoing Brunei Shell Rasau 3 1- Jul -02 1- Jan -03 UB D Onshore Rig End • . Indonesia ExxonMobile Arun 8 1- Aug -02 1- Sep -03 UBD Onshore Rig End • Indonesia Kufpec Seram 2 1- Mar -02 1- Aug -02 UBD Onshore Rig End • Malaysia Shell 1 1- Oct -01 1- Feb -02 UBD Offshore Rig End Malaysia Shell St Joseph 2 1- Feb -02 1-Aug-02 UBD Offshore Rig End Austrailia Santos Barrolka 3 1- Aug -00 1- Feb -01 UBD Onshore Rig End Portugal Mohave Aljubarrota 1 1- Mar -00 1-May-00 UBD Onshore Rig End Colombia GHK Tres Pasos 1 1- Dec -98 30- Dec -98 UBD Onshore Rig End Indonesia Kufpec Oseil 2 1- May -98 1- Oct -98 UBD Onshore Rig End USA Bryan Woodbine Oil Co Woodbine sand 5 1 -May-97 1- Aug -97 UBD Onshore Rig End • • • Wells • • Totals 234 • Page 1 of 37 H LLIBURT ©N GeoBalance Applications: Underbalanced and Managed A pp ed Pressure Drilling Job History 9 Client: Reliance Industries Ltd No. of Wells: 1 Fields: NEC completed, ongoing UBD and MPD wells Address: Offshore Eastern India Solution: HES MPD System to drill stacked sand HPHT well Range of Services: Feasibility Study, Candidate Selection, UBD Engineering and FEED, Project Management, HSE, Onsite MPD Supervision, MPD Autochoke system, Surface Separation, Data Acquisition with INSITE, . Contact: Ramdass Karavadi Telephone: email: Ramdass.karavadi @r il.com Start Date: Oct 2007 End Date: Ongoing Narrative: NEC -25 -B3 well was drilled utilizing MPD techniques with choke control. Drilling operations where very successful by enabling operator to drill deeper without setting additional casing string. RIL will continue to use this technology on all their wells where similar drilling problems are encountered. • Page 2 of 37 HALLIBURTDN GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: American Oil and Gas No. of Wells: 3 Fields: Powder River Basin Address: Wyoming, USA Solution: HES UBD System to drill fractured sandstone, with high pressure fractures • Range of Services: Feasibility Study, Candidate Selection, UBD Engineering and FEED, Project Management, HSE, Onsite UBD Supervision, UBD choke system, Surface Separation, Data Acquisition with INSITE, . Contact: Aaron Miller Telephone: email: Aaron.miller @Hallibu rton.com Start Date: April 2006 End Date: February 2008 Narrative: Three wells drilled utilizing MPD techniques to drill pilot hole and then utilized UBD for drilling lateral in reservoir section RTRE was utilized to determine location of fractures. Gas and condensate were sold on last 2 wells during drilling operation. Incidents RCD element failure, gas vented, but was quickly contained utilizing the annular's within first few seconds of problem, no spills or environmental issues. i Page 3 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Energi Mega Persada Kangean Ltd No. of Wells: 2 Fields: Sepanjang Island Address: Onshore Sepanjang Island, one of Kangean Islands, North of Bali, Indonesia Solution: HES UBD System used to Solve Drilling Problems and Formation Damage in Fractured Carbonate Reservoir Range of Feasibility Study, Candidate Selection, UBD Engineering and FEED, Project Management, HSE, Onsite UBD Supervision, Surface Separation, Data Services: Acquisition with INSITE, Tank Farm with Steam Heating, Drilling Fluids, Completion Equipment, Cement Unit, Bits, Sperry BHA and MWD. Contact: Ross Prasser, EMP Telephone: Jakarta Office +62 21 2550 email: Ross.prasser@energi- 4880 mp.com Start Date: February 2006 End Date: December 2006 Narrative: A previous well drilled overbalanced (in 1990) in this slightly over pressured (8.7 ppg EMW) fractured carbonate reservoir had experienced lost circulation problems, resulting in reservoir damage and NPT. The project was particularly challenging as the reservoir produces oil with a Pour Point of 115 deg F. The wells are low GOR at 110 scf /bbl, and Water Cut at 0 %. The wells were drilled underbalanced using flow drilling techniques. The drilling fluid used was initially diesel, which became diluted with native crude oil as the reservoir produced during UBD. The diesel was pre- heated and the crude oil was kept hot, and above its Pour Point, using steam coils in an enclosed oil tank farm. The steam coils were heated using steam generators. Oil produced during UBD was exported into pre installed production facilities and an insulated pipe line. Crude oil had to be heated prior to exporting. The production facilities and 5 km pipe line were preheated using water and a direct fired heater, prior to oil exporting. The oil was then exported down the pipe line to an FSO offshore. Oil pumped down hole had to be cooled using a mud cooler, so as not to damage the rig pumps or Kelly hoses. Pre heated diesel was used to flush all lines and the pipe line after oil flow down any line had ceased. Solids were centrifuged out of the enclosed tank farm, then treated in a lined pit on the island. The wells have an IADC classification of 4B5. The project was a commercial and operational success. Reservoir damage was eliminated, resulting in significant oil production rate improvement. The reservoir produced crude oil with a PI of over 1000 bbl /day /psi during UBD, and after the wells were put on production. Lost circulation and slow ROP problems were solved, meaning the reservoir sections were drilled faster. All produced oil was successfully exported to the FSO offshore during UBD operations. The wells were successfully completed underbalanced. Page 4 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Halliburton IS Pemex Bermudez & Jujo Projects No. of Wells: 126 Fields: Iride, Samaria, Cunduacan, Jujo, & ongoing Tecominoacan Address: Onshore Southern Mexico Solution: HES UBA System (Low Head) to solve Drilling Problems in Under - pressured Fractured Carbonate Reservoirs Range of Services: Recyclable foam products & testing, Surface separation, MPD Engineering, Project Management support, MPD Supervision, Rotating Flow Diverter, Mist pump, Membrane Nitrogen, Cryogenic Nitrogen, Corrosion Control & Monitoring, DAS & real -time data transmission with INSITE, Completion Products, Cementing, MWD /DD. Contact: Avram Lopez Telephone: (52) 9173282100 email: Avram.Iopez @hallibu rton.com Start Date IS Turn Key Project: June 2004 End Date: May 2006 Start Date: Discrete Contract May 2006 End Date: Ongoing, 2010 Narrative: Halliburton IS turn key drilling project responsible for large scope of work from spud to completion. 4 Separation (LRT) packages operated in the reservoir section of the 33 wells which were drilled by 7 drilling rigs, in the initial project. MPD services utilized in the pay zone section of the wells to provide a low density, LCM -free, near - balanced fluid system ranging from 2.9 to 7.0 ppg ECD. Fluid systems that were used were a recyclable foam in the 2.9 to 4.5 ppg range and two -phase (nitrogen and drilling fluid without a foaming surfactant) in the 4.5 to 7.0 ppg range. Well depths range from 11,000 to 20,000 ft in the pay zone. • High Temperature Recyclable Foam drilling fluid system was a designed & tested specifically for this application in Reforma Mexico & the Duncan Technology Centre. Initially the project started with cryogenic nitrogen which was later phased out by membrane nitrogen injection equipment which lowered costs and provided a more reliable supply of nitrogen. Halliburton now has 4 membrane Nitrogen packages working with the LRT separation packages. Drilling time in the pay zone was reduced by an average of 50% compared to previous wells. Page 5 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Halliburton Discrete Contract drilling project responsible for large scope of work from spud to completion. 4 Separation (LRT) packages operated in the reservoir section of the 44 wells drilled with full Sigma Service (Separator, Choke system, Nitrogen in lower pressure reservoirs, RCD), 12 wells drilled for kick control, 34 wells drilled with RCD and 3 wells with N2 only.. The project is now ongoing and further wells are being drilled using MPD technologies. MPD services utilized in the intermediate and pay zone section of the wells to provide a low density, LCM -free, near - balanced fluid system ranging from low pressures to very high ECD's (2.9 to 8.0 ppg ECD in the low pressure reservoirs and (8 to 18ppg in the high pressure formations) . Fluid systems that were used were a recyclable foam in the 2.9 to 4.5 • ppg range and two -phase (nitrogen and drilling fluid without a foaming surfactant) in the 4.5 to 7.0 ppg range and single phase WBM and OBM in the higher pressured formations. Well depths range from 11,000 to 20,000 ft. Incidents: Two RCD incidents due to leak no spill and incident was contained. One environmental incident shown below. . LOC ACI Incident Type # INC Date PSL /SS ON DESCRIPCION ` { Environmental 4633 5- Dec -06 SDS Sam While breaking circulation at casing shoe in Samaria 1081, pumping 300 GPM Recordable 73 (UBA) aria of oil base mud and 25 m3 of N2. Sample Catcher's PSV relieved at 60 psi 1081 (it is set at 250 psi), diverting mud to the flare stack, and dumped an estimated of 3.77bbls to the ground. Immediately shut down rig pumps and bypass N2, closing chokes. All operations were stopped to contain the spill, no environmental impact Drilling time in the pay zone was reduced by an average of 50% compared to previous wells. Page 6 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: HESS Thailand Limited No. of Wells: 6 Well: Phu Horm 3 drilled in 2003; Appraisal wells Phu Horm 4 & 5 drilled in 2004; Wells PH6, 7 & 10 drilled in 2007 Address: Onshore NE Thailand Solution: HES UBA Range of Services: Front End Engineering and Design, UBD Engineering, UBD Project Management, Onsite UBD Supervision, Separation System (HRT), Data management (Insite), Nitrogen services, Condensate Tank Farm, Completion Equipment, Reservoir Evaluation, Real Time Data Transmition Contact: Andy Timms Telephone: (66) 2636 1936 Fax: Start Date: March 2003 End Date: Dec 2007 Narrative: HESS drilled conventionally into a marginally over - pressured fractured carbonate reservoir and encountered well control problems while trying to drill the reservoir section. The Phu Horm 3 well was killed and secured until a solution could be found. Halliburton assisted with a design to drill the reservoir section utilizing UBD techniques to control the well while drilling and to eliminate any potential damage to reservoir. After substantial upfront engineering and preparation, the well was safely drilled without any well control problems and resulted in flow rates far exceeding expectations. Subsequent post - completion extended flow tests confirmed a large reserve base with this accumulation. Successful operational and production outcome. Appraisal wells Phu Horm 4 & 5 were successfully drilled utilizing UBA techniques. Real Time Reservoir Evaluation (RTRE) was performed on both wells with outstanding results from the application. The RTRE has allowed for early evaluation on the well before well was TD. This allowed for early project sanctioning by HESS and decreased time line for decision making. Phu Horm 5 produced 40 MMscf /day gas during UB drilling at minimal drawdown. Phu Horm 4 produced 65 -70 MMscf /day during UB drilling at minimal drawdown (has proved to be the largest sustained gas rates in the world to -date for this type of operation). PH 6 and 7 where dry holes, PH 10 was drilled conventionally and was deemed to be damaged and produces 10 mmscfd. Page 7 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Santos, Adelaide Australia No. of Wells: 4 Fields: Strezelecki, Marabooka, Della and Moomba. Address: Cooper Basin, South Australia Solution: Integrated UBD and CTD delivery to reduce unit production cost in depleted tight oil and gas fields by remediation.of wellbore damage and increasing permeability by exposing new formation. Identify new opportunities in low quality reservoirs Range of Services: Project Management, Front End Engineering and Design, UBD Engineering, Onsite UBD Supervision, Cryogenic Nitrogen, Twin Panther Pumps, 80k Coil Tubing Rig with 2 -3/8" coil and tower, LRT Surface Separation, INSITE /Scan3 Data Acquisition. Contact: Rick Doll / Kevin Welsh Telephone: email: Start Date: September 2004 End Date: December 2004 Narrative: Four wells increasing in complexity to implement CTD UBD technology in a step wise approach. Strezelecki 14 (gas) underbalanced deepening in low pressure well, production came in above expectation. Marabooka 8 (gas) underbalanced lateral into undamaged formation, exceeded expectations. Della 24 (gas) low angle side track into un damaged reservoir, field record producer Moomba 117 (oil) dual lateral sidetrack into un damaged reservoir, dual casing exit and flow drilled with crude. 1 Page 8of37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Customer: Sonatrach (ENTP) No. of Wells: 8 wells plus — MD 352, MD 199, MD 418, MD 10 430, OMM 731, MD 322 & OMO 13 completed. Address: Hassi - Messaoud, Algeria Solution: HES UBA Range of Services: Contractor for Underbalanced Drilling Services providing short radius directional re -entry sidetracks for increased productivity in existing production wells. Halliburton provided services includes Upfront Engineering and Job Design, Project Management, kick -off and directional sidetrack drilling, MWD and Underbalanced Site Supervision and Engineers, Surface Separation Package, Rotating Control Head, Insite / SCAN 3 data acquisition, Safety System, Nitrogen Delivery, Solids Treatment and Site Storage and Transfer of Produced oil (Tank Farm and Export Pump). Contact: Mohamed YAHMI Telephone: 213 29 73 88 50 Fax: 213 29 73 80 88 Start Date: Commenced; March 2003 End Date: 2006 Narrative: Successfully completed 7 wells of a 10 well programme, with two wells providing record productivity for their areas. No safety or operational incidents. i Page 9 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Saudi Aramco, Saudi Arabia No. of Wells: Wells: Khurais Field 1, ongoing Address: Onshore Saudi Arabia Solution: HES UBD, Schlumberger Coil tubing and cryogenic N2, Baker Inteq BHA Range of Services: Front End Engineering and Design, UBD Engineering, Onsite UBD Supervision, INSITE /Scan3 Data Acquisition, UBD Separation System, Choke System, High pressure separation system Contact: Alain Belainger Telephone: Fax: Start Date: 11/2006 End Date: Ongoing 2009 Narrative: Aramco wished to emulate BP and Margham UBD operations conducted with coiled tubing in depleted carbonate gas reservoir. A gas conservation /compression system and high pressure separator allows the produced gas to be processed, recompressed and exported back into the sales line making a significant contribution to maintaining and optimising daily production levels; and also to address and conform to flaring restrictions. Condensate was also processed and re- injected back into the production header maintaining 100% recovery and further enhancing the economic viability of the project. Produced formation and drilling fluid /solid returns were separated, processed and checked for conformity before disposal. In the first well a four fold increase in production was seen compared with previous conventionally drilled and stimulated wells. Page 10 01 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Margham Dubai Establishment (MDE) # of Wells to Wells: GAS RE ENTRY PROGRAM — date: 5 Margham Field Address: Onshore - Dubai, United Arab Emirates Solution: HES UBA • Range of Services: Front End Engineering and Design, UBD Engineering, Onsite UBD Supervision, INSITE /Scan3 Data Acquisition, UBD Separation System Contact: John Capps Telephone: Fax: Start Date: April 2006 End Date: 8/2007 Narrative: MDE were interested in utilizing the same multilateral re entry approach that had proved so successful for BP Sharjah because there were many similarities and challenges with their gas field. The driver for this campaign revolved around the need to increase gas production from the MDE field to cope with Dubai's ever increasing development / expansion. Dubai's electrical power was being generated via the burning of liquid fuel at approximately 6 times the cost of natural gas. The initial goal was to add 60 MMSCFD to the field's current production with 5 re —entry wells. This goal was significantly surpassed by the first three wells (approx. 75 MMSCFD). This success has led to the recognition of this technology as being an efficient and cost effective method of increasing production without a large capital investment. Phase 1 (5 wells) were completed in Q4 -2006. Phase 2 (5 wells) are being drilled in 2007, and Phase 3 (3 -5 wells) is being evaluated and considered in conjunction with a work over campaign for some of the older wells in the field. • This project is a 2 phase (N2 & water) coiled tubing underbalanced multi lateral drilling campaign in a depleted limestone gas reservoir. A gas conservation /compression system has enabled produced gas to be processed, recompressed and exported back into the sales line making a significant contribution to maintaining and optimising daily production levels. Condensate has been processed and re- injected back into the production header maintaining a high percentage of recovery and further enhancing the economic viability of the project. Produced formation and drilling fluid /solid returns are processed in the vertical two stage 4 phase separation unit and checked for conformity before disposal. There have been no lost time incidents since the beginning of this project. Page 11 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: BP Amoco Sharjah No. of Wells: Wells: Sajaa Field 40 Address: Sharjah, Onshore United Arab Emirates Solution: HES UBA • Range of Services: Front End Engineering and Design, UBD Engineering, Onsite UBD Supervision, INSITE /Scan3 Data Acquisition, UBD Separation System Contact: Randy Pruitt Telephone: Fax: Start Date: March 2003 End Date: March 2006 Narrative: BP conducted coiled tubing underbalanced drilling campaign in this depleted carbonate gas reservoir. A gas conservation /compression system enabled produced gas to be processed, recompressed and exported back into the sales line making a significant contribution to maintaining and optimising daily production levels; and also to address and conform to flaring restrictions. Condensate was also processed and re- injected back into the production header maintaining 100% recovery and further enhancing the economic viability of the project. Produced formation and drilling fluid /solid returns were separated, processed and checked for conformity before disposal. Over 340,000 feet were drilled in 163 laterals in 40 wells. Average initial increases in production were @ 3 -fold. The project achieved >1.2 million man -hours without a DAFWC. Over 5 BCF of gas was compressed to the plant while drilling! BP discontinued the project 1Q06 to re- evaluate the reservoir drainage patterns. Drilling is expected to re- commence in • 2007. Page 12 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Statoil - Gullfaks No. of Wells: C -05A, CO9A and C47 Address: Offshore, Norway Solution: HES UBA • Range of Services: Halliburton services include Upfront Engineering and Job Design, Project Management, Offshore UBA Supervision and UBA Drilling Engineering, Surface Separation Package, INSITE / SCAN 3 data acquisition and PLC safety system monitoring downstream UB parameters. Contact: Tim Tennessen Telephone: (47) 51837638 Fax: (47) 51838383 Start Date: Commenced; November 2003 End Date: 2007 Renewed MPD contract started 2007 Narrative: In recent years, increasing difficulty in drilling the Shetland cap rock has prompted Statoil to investigate the use of alternative drilling methods. Over - pressure in the Shetland cap rock has been created by local water injection opening microfractures allowing charging of carbonate stringers that run through the cap rock. The resulting overpressure can run very close to formation fracture pressure. Increasing mud weight to the density required to control the overpressure will result in ECD exceeding formation fracture pressure. If mud density is reduced so that ECD is below fracture pressure, then static fluid density will be below pore pressure and a kick situation can reoccur. An Underbalanced system allows the section to be drilled with a fluid density that is intentionally designed to be below pore pressure allowing the well to flow if abnormally high formation pressure is encountered. • C -05A: UBA of side -track using clear 1.55 sg KCOOH brine • • C -09A: MPD of 8 -1/2 "section in the cap rock and 6" section in the reservoir. Using 1.55 sg clear brine, a solids- weighted water -based fluid and a 1.45 sg solids- weighted oil -based drilling fluid. • C47: MPD in 12 -1/4" section in the cap rock using 1.55 sg solids - weighted oil -based mud. Page 13 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Hydro - Grane No. of Wells: G -2, G -1, G -39, G -16 Address: Offshore, Norway Solution: HES UBA Range of Services: Halliburton services include Upfront Engineering and Job Design, Project Management, Offshore UBA Supervision and UBA Drilling Engineering, data acquisition and RCD services. Contact: Tim Tonnessen Telephone: (47) 51837638. Fax: (47) 51838383 Start Date: Commenced; 2007 End Date: TBD Ongoing Narrative: • In recent years, increasing difficulty in completing the wells on Grane to the planned TD due to instable shale stringers and lost circulation issues led Hydro to investigate further solutions on how to optimize bottom hole conditions. MPD presented by Halliburton was found to be the most viable solution and the summer of 2007 the first well was drilled keeping open over 150m of shale and still being able to complete the reservoir section successfully. Third party RCD services problems occurring delayed project progress until summer of 2008 when a new RCD solution utilizing a passive head operated by HES was introduced on well G -16. The use of MPD to increase length of horizontal reservoir laterals together with Halliburton MLT solutions is expected to greatly increase production from this field. • Page 14 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History • Client: StatoilHydro — Gullfaks (Renewed contract) No. of Wells: C -01 Address: Offshore, Norway Solution: HES Geobalance automated MPD Range of Services: Halliburton services include Upfront Engineering and Job Design, Project Management, design and delivery of purpose build equipment, Offshore Supervision and Drilling Engineering. Contact: Tim Tonnessen Telephone: (47) 51837638 Fax: (47) 51838383 Start Date: Commenced; December 2006 End Date: Dec 2010 + 2 Advanced automated MPD years equipment Narrative: • In recent years, increasing difficulty in drilling the Shetland cap rock has led StatoilHydro to utilize UBD /MPD services from Halliburton to gain access to certain reservoirs as described above. The need for full underbalanced services was not present as the produced fluid was primarily water and reservoir production and permability is so high that keeping a slight overbalance while drilling the formations was adequate to achieve all the customer objectives. • Currently new advanced automated control MPD equipment will be implemented on the C -01 well in November 2008. • Page 15 of 37 HALLIBURT ©N GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Brunei Shell Petroleum No. of Wells: 3 Wells Rasau 34, 39 & 40 Address: Seria, Onshore Brunei Solution: HES UBA Range of Services: Halliburton services included Upfront Engineering and Job Design, UBA Supervision and UBA Drilling Engineers, BRT 4 phase separation unit, Rotating Control Head, INSITE / SCAN 3 data acquisition and PLC safety system monitoring all downstream UB parameters. Imported third party downhole and mud logging data for single source data base and monitoring of all UBA data, crews and technicians, base oil supplement, tank farm and shaker equipment / solids control, gas compression. Contact: Mike Ward Telephone: (67) 3 337 2785 Fax: Start Date: July 2002 End Date: January 2003 Narrative: A three -well underbalanced drilling trial was conducted in the Rasau shallow oil field, located onshore in Kuala Belait, Brunei (first ever UBD in Brunei). UBD was chosen to reduce or eliminate formation damage normally experienced using traditional drilling methods in this field (typical skins of +80 -100 on conventional wells). Native crude and field gas were chosen as the drilling fluids, thereby increasing the complexity of the operation as well as equipment requirements. The target reservoirs were shallow (circa 1800m) thin, stacked, inter - bedded sand /shale units. The program was to drill high - angle, sub - horizontal wells cutting through the many sand layers to maximize formation exposure. The stability of the inter- bedded shales caused significant problems due to "borehole breakout" and collapse (one well could not be drilled UBD). The 1 well in the campaign (where the reservoir pressure was highly depleted) and the 3 well (where up to 60% • of the drilled section was shale) were expected to be at greater risk. Production rates observed after drilling to TD and prior to running completions indicated zero formation impairment and higher than anticipated Pi's. Post completion well tests indicated productivity reductions of 60 to 70 %. These reductions were attributed to mechanical problems incurred during the completion and near wellbore impairment (hole collapse or screen plugging). The wells are now on production and are being evaluated for long -term benefits. The pilot project showed UBD potential; a regional borehole stability study was subsequently conducted to establish criteria and further candidates for UBD in this area. Page 16 of 37 . it HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Exxon Mobil Indonesia No. of Wells: 8 C111— 16C, 5A, 16B, 17 CIV —16, 2A, 22, 6A Address: Arun Field, Sumatra, Onshore Indonesia • Solution: HES UBA Range of Services: Halliburton services included Upfront Engineering and Job Design for surface separation systems and equipment which data of BRT 4 phase separation unit, Automatic Choke control, PLC chokes control, SCAN 3 da a ac q uisition and PLC safety system monitoring all downstream UB parameters. Performed single source data base and monitoring of all UBA data. Contact: Chuck Reibi Telephone: (62) 21 574 7070 Fax: Start Date: August 2002 End Date: September, 2003 Narrative: This formation in the Arun field is a highly productive and highly depleted (2ppg) carbonate gas reservoir. The main reason for drilling underbalanced was to increase production. Additionally, due to the depleted pressure it was not possible to drill conventionally with a full fluid column. Halliburton designed and built a high flow rate UBA process package to be able to flow the wells while drilling with minimal pressure drop through equipment; using core design criteria from existing UBA packages and changing to fit for purpose equipment. Gas production targets were met after drilling only 6 of the planned 10 wells (total of 8 were drilled). Production results • were 46% higher than the expected UBD results. The wells were drilled in record time allowing for a substantial decrease in cost to drilling operations. No LTI's or first aid cases were recorded over the 1.57 year project. Non - Productive Time (NPT) during the UBD operations accounted for just 0.9% of total well time. Page 17 of 37 HALLIBURTQN GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Kufpec (Indonesia) Ltd No. of Wells: 2 Wells Oseil 2 and Lola Kecil 1 Address: Seram Island, Onshore Indonesia Solution: HES UBA • Range of Services: Halliburton services included Upfront Engineering and Job Design, UBA Supervision and UBA Drilling Engineers, BRT 4 phase separation unit, Shaffer Rotating Control Head (PCWD), Insite / SCAN 3 data acquisition and PLC safety system monitoring all downstream UB parameters. Imported third party downhole and mud logging data for single source data base and monitoring of all UBA data, crews and technicians, base oil supplement, tank farm and shaker equipment / solids control. Contact: Simon Shaw (Drilling Telephone: (62) 21 766 2840 Fax: (62) 21 766 2845 Manager) Start Date: March 2002 End Date: August, 2002 Narrative: The Oseil field is an under- pressured, fractured carbonate oil reservoir. The crude contains high wax and H2S content and is prolific where macro fractures are encountered. Conventional wells were damaged and experienced massive fluid losses. Osiel 2 was side tracked with a 7" liner set in top of carbonate reservoir section. It was then drilled underbalanced utilizing native crude oil and Membrane generated N2. The well initially flow approx 1000 BOPD. After intersecting macro fractures in the reservoir, the well was completed after flowing 10,000 BOPD. Kufpec are planning an addition 15 UBD well program to increase their production to a meet market demand by late • 2004. Lola Kecil 1 (exploration well) - was drilled to 6000' dry and was P &A'd Page 18 of 37 HALLIBURTDN GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Sarawak Shell Berhad (SSB) No. of Wells: 1 El 1 -SC2 Address: Sarawak, Offshore East Malaysia Solution: HES UBA Range of Services: Halliburton provided a wide scope of services for this integrated offshore underbalanced drilling program, including Project Management, upfront engineering, planning, well design, Site Supervision and UBD Engineering, Advanced four - phase separation & Data acquisition system, Electronic PLC Based Surface Safety Shut -in System, Rotating Control Device, Cryogenic Nitrogen Injection, hydraulic workover (HWO) Snubbing and Security DBS's Near Bit Reamer (NBR). Sperry -Sun provided MWD /PWD /LWD and directional drilling services. Additionally, Halliburton supplied real -time data transmission to Shell's local office in Miri (via INSITE ANYWHERE) and ultimately provided Reservoir Analysis while drilling, using a proprietary analytical model developed specifically for this application. Halliburton's new downhole isolation valve called the "Quick Trip Valve" (QTV) was also run to facilitate the deployment of Expandable sand screens into the well without having to perform a well -kill. Contact: Jan Terwogt Telephone: (60) 85 453 972 Fax: Start Date: October 2001 End Date: February, 2002 Narrative: The El 1-SC2 Shallow Clastics Underbalanced drilling project included many industry firsts, such as; First offshore UBD well in Malaysia, First run of the QTV offshore and first UBD well using a tender assist Drilling Rig. The Shallow Clastics formation is a normally pressured gas reservoir with moderate permeability. The well was drilled underbalanced to maximise well production through impairment reduction. The well was drilled utilising a nitrified water based drilling fluid. The well was evaluated to have resulted in 2.5 times increased production from the conventionally drilled well in the same formation. Further Field Development is being evaluated utilising UBD technology. * *This UBD well was designed, executed, and completed on a fast -track program in less time than any one previous Shell (Global) offshore UBA projects ** Page 19 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Sabah Shell Petroleum Company (SSPC) No. of Wells: 2 St Josephs H3 & H5 Address: Sabah, Offshore East Malaysia Solution: HES UBA Range of Services: Halliburton provided a wide scope of services for this integrated offshore underbalanced drilling program, including Project Management, upfront engineering, planning, well design, Site Supervision and UBD Engineering, Advanced four - phase separation & Data acquisition system, Electronic PLC Based Surface Safety Shut -in System, Rotating Control Device, Gas Compression, solids control and storage system, zone rated oil injection pumps and all control and interface systems to link all of the UBD equipment together. Sperry-Sun provided directional drilling services. Additionally, Halliburton supplied real -time data transmission to Shell's local office in Miri (via INSITE ANYWHERE) and ultimately provided Reservoir Analysis while drilling, using a proprietary analytical model developed specifically for this application. Contact: Jan Terwogt Telephone: (60) 85 453 972 Fax: Start Date: February, 2002 End Date: August, 2002 Narrative: These two wells were drilled and completed underbalanced from a small jackup rig. This was the first offshore application of crude oil and hydrocarbon gas injection as drilling fluid in jointed pipe operations conducted in the Asia Pacific region, and was successfully carried out without any HSE incidents. The St. Josephs "H" Sands are depleted sandstone / shale layered formations. Conventional drilling resulted in formation damage (average +5 in horizontal wells). Prior to the UBD campaign, a geomechanical study suggested a moderate to high risk of borehole instability would be expected while drilling underbalanced in these shallow sands. • The 1st well was drilled partially overbalanced due to borehole stability concerns. No problems were experienced during the drilling or completion operations in this well. Due to the mitigation of borehole stability risk, the second well was drilled fully underbalanced, and was evaluated to have 50% higher than expected production. Further Field Development is being evaluated utilising UBD technology. Page 20 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Santos Oil Pty. Ltd No. of Wells: 3 Wells: Barrolka 4, 5 and 7 Address: Barrolka Field; Cooper Basin, SW Queensland, Onshore Australia Solution: Lead UB Contractor Range of Services: Halliburton services included Upfront Engineering and Job Design, UBA Supervision and UBA Drilling Engineers, BRT 4 phase separation unit, Shaffer Rotating Control Head (PCWD), lnsite / SCAN 3 data acquisition and PLC safety system monitoring all downstream UB parameters. Imported third party downhole and mudlogging data for single source database and monitoring of all UBA data, crews and technicians, base oil supplement, tank farm and shaker equipment / solids control. Halliburton also provided reservoir evaluation of the underbalanced drilled section in Barrolka 5. Contact: Jim Carr Telephone: Fax: Start Date: August, 2000 End Date: February, 2001 Narrative: This three -well underbalanced drilling pilot program featured one vertical and two horizontal wells using base oil as the drilling fluid. The normally pressured sandstone gas reservoir was characterized by tight -gas sandstone and matrix permeability of 0 -1 md, and random higher permeability crevasse splay sand lenses throughout. The reservoir also had coal sections above and below. The plan was to drill horizontal wells underbalanced to maximize possibility of intersecting the higher permeability lenses while protecting the formation from near wellbore damage. Conventional wells were sub - economic. Four (4) air drilled vertical wells produced 1 -3 MMscfd but had experienced problems with downhole fires and wellbore stability. Barrolka 4 - The program for the first well was to drill a vertical pilot hole to determine the location of coal sections and run logs to enhance the geo- mechanical model. A vertical sidetrack was then drilled underbalanced into the reservoir. This first well would also provide the opportunity to proof test the new underbalanced drilling 4 -phase surface - separation system and crews, provide training for the drilling crews, and observe the skin damaging effects of the base oil on the reservoir. At the same time, this would provide an opportunity to review whether there were significant added complications of drilling a directionally complex, high angle well. During the wireline logging operations on the pilot hole, the coal seam underlying the reservoir collapsed, making it impossible to run the logs over most of the reservoir. As planned, the well was cement plugged back, and then an 8% -in. vertical sidetrack was drilled conventionally (sidetrack Page 21 of 37 • HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History and main bore being separated laterally by 70 ft). A 7 -in. liner was then run and cemented, and the underbalanced section was then drilled out with a 6 -in. bit. The underbalanced hole section was successfully drilled from 8483' to 8567' thereby proving the mechanical integrity of the system and process. Unfortunately, no significant gas sections were encountered through this short, vertical section. Barrolka 5 — was the first horizontal flow - drilled well in the field. Due to coal instability and washouts, the 7 "casing could not be run to planned depth and was set high (i.e; above the main target). The well was then underbalance drilled horizontally into the upper secondary zone. Due to drilling motor failures and steering problems in the horizontal section, • three open hole sidetracks were drilled. Ultimately, 1,517 feet of reservoir in the well was drilled underbalanced. The new advanced four -phase UBD Separation system was able to successfully manage all returned fluids /solids while drilling this well, and was subjected to instantaneous rates of up to 50 MMscf /day gas and 25,000 BOPD during well surges at various stages of the operation. This well was also used as a test case for Halliburton's latest generation of a new UBD reservoir - modeling tool. The modeling indicated that contrary to general consensus the reservoir section did not appear to consist of relatively long lengths of net pay, but rather production was from a few point sources of high permeability along the length of the reservoir section. The well was completed as one of the field's only economic wells at 1.5 MMscfd. Barrolka 7 - This third well location was chosen in an area of the field considered to be less fractured and subject to lower stress variations. The main technical objective of this well was to drill a mechanically and operationally successful horizontal well. This was fully achieved, and ultimately, a total of 1706 feet was drilled underbalanced. The well did not encounter any commercial zones and produced only at marginal gas rates. The UBD project was considered an operational success, however due to geological uncertainty in the field, the program was discontinued. Santos are presently reviewing feasibility of performing a Coiled Tubing UBD pilot program in another field in 2004. • Page 22 of 37 HALLIBURTQN GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Mohave Oil and Gas No. of Wells: 1 Well — Aljubarrota 3 (exploration) Address: Aljubarrota Field; Alcobaca, Onshore Portugal • Solution: Integrated Solutions Range of Services: Halliburton services included Project Management, Upfront Engineering and Job Design, UBA Supervision and UBA Drilling Engineers, Sperry Sun Electromagnetic MWD, LWD, DWD and Mudlogging, Insite Command Unit and technicians, Tools and Testing sensor package on N2 injection equipment . Also responsible for co- ordinating third party services such as separation package, drilling fluids, nitrogen injection services, rotating heads, DBS Drill Bits and BHA Equipment. Contact: Mike Stern Telephone: (1) 713 975 1725 Fax: Start Date: March 2000 End Date: May 2000 Narrative: Vertical well, drilled in carbonate formations, Drilled well underbalanced from 17 '/2' section. 17 '/2' drilled with N2 foam @ 2 — 3 ppg until a water influx was taken at 135m, section completed with water. 12 '/4" section drilled with N2 aerated water UB system @ 5 — 7 ppg, drilling near balance. 8 Y2" section drilled with foam until water influx taken at 1075m, drilled to TD overbalanced with water. Well TD @ 2480m, no gas shows / production over entire well. Operational success. • Page 23 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: GHK Company Columbia No. of Wells: 1 Well — Tres Pasos 1W Address: Guaduas Field Rio Seco Block; Onshore Columbia, S. America • Solution: Lead Contractor Range of Services: Halliburton services included directional drilling systems, MWD, LWD, Geosteering, cementing, testing and UBD project personnel. Also responsible for co- ordinating third party services for drilling fluids, air drilling services, drill bits and nitrogen services. Contact: Gary Wallen Telephone: (57)(1) 629 -1580 Fax: (57)(1) 629 -5637 Start Date: December 1998 End Date: December 1998 Narrative: After setting 9 -5/8" casing at 5958', installed 4500' of 7" casing (concentric string), drilled 9 -5/8" shoe with 6 -1/8" bit, tripped for UBD assembly and drilled a lateral with 8.5 ppg brine down the drill string and nitrogen injection in the micro - annulus. The lateral was drilled to 10,780' MD and 6,286' TVD. During the drilling operation, the well produced 5363 Bbls of 21 API gravity, sweet crude and a total of 12.9 MMCF of gas. A two -phase separator and oil- skimming system were utilized. Oil was transported by truck, and the gas was flared. Successful operational and production outcome. • Page 24 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Kufpec (Indonesia) Ltd No. of Wells: 2 Wells — Oseil 2 and 4 Address: Oseil Field Seram Island, Onshore Indonesia • Solution: Integrated Solutions Range of Services: Project Management and Lead Contractor for underbalanced services. This included supply of rotating control diverter, choke manifold, four -phase separation system, air compressors /nitrogen membrane units, enclosed H2S oil storage tanks, solids separation equipment and flare system. Contact: Ian P. Moyle Telephone: (62)(21) 766 -2840 Ext.15 Fax: (62)(21) 766 -2845 Start Date: Commenced UBD, Oseil 2; May, 1998 End Date: Completed UBD, Oseil 2; July 1998 Commenced UBD, Oseil 4; Sept, 1998 Completed UBD, Oseil 4; Oct, 1998 Narrative: The purpose for conducting UBD operations was to prove up reserves discovered on Oseil 1. Oseil 1 had been drilled overbalanced and experienced up to 30,000 Bbls of drilling fluid losses (under - pressured fractured carbonate zone). On Oseil 2 and 4, after drilling out of 9 -5/8" casing the wells were drilled and cored underbalanced in 8 -1/2" hole, starting with nitrified diesel and finishing with nitrified sour crude oil. The wells were then tested with considerably higher PI's ranging between 200 -700 Bbls /psi (16 API gravity, sour crude). Successful operational and production outcome. • Page 25 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Bryan Woodbine Oil Corporation No. of Wells: 5 Wells 36 -H, 29 -H, 48 -H, 38 -H & 1 -H Address: Bryan Woodbine Unit; Brazos County, Onshore Texas, USA • Solution: Integrated Solutions Range of Services: Project Management; provided all services including rig to re -enter and plug -back existing wells, mill window, sidetrack with lateral(s) in Austin Chalk utilizing a flow - drilling technique and perform open hole completions. Halliburton was compensated from well production. Contact: Tony Dyson, President Telephone: (409) 776 -0121 Fax: (409) 776 -1312 Start Date: Commenced; May, 1997 End Date: Completed; August, 1997 Narrative: All five wells were non - producers in the Woodbine sand. Project required plugging back in 5 -1/2" casing and drilling a total of eight laterals. Three wells had up -dip and down -dip laterals, and two wells had one lateral only. KOP was at 8600' TVD and utilized a build rate of 30 degrees /100'. Laterals measured from 1900' to 3700'. During drilling operations, gas production of approximately 500 Mscf /day was being sold into an existing gas gathering line and oil was being recovered and transported by truck to the operator's tank battery. Initial production from all five wells was approximately 1400 BOPD of 37 API gravity, sweet crude. Successful operational and production outcome. • Page 26 of 37 • HALLIBURTON Underbalanced Drilling Performance Testimonials t...nmedio 011 4owk■Irie tnr. Werra ,TT F...*TenzTs Jr - 07 is.),. 62 21 V'T 6'74 Tm{se F Seixt..n4ber 2f.473 /t run itort• 1 row E)f<onfiilobil EMOTtni 11111F. ivoc•acu Tfli Sue neo41 Turanre Serm 4 :...,:41 , t1,11r7k? ..51.1PI Of Al Ttan.. g.. ?T:3111' yOti /.1 eArr:14:111 ialppeq'T the, perne en tar Ai= CI IT4,:te .1/4411 V4p1: fau scpwriiier Cnaslankn h rinr.. ia) !JUT 'roC.A at' Safrh Perfornuhri- "'Nobody I;ch Hurl" • ro.s-ottz a slogit 'east a tC74Trre rr+ th.' SIV1" Tht c.•144r;v: rcportl•ert. Pr14=1).K 9r14111.10 A.T RILL.= inat irsffylant eitztle ■1` lOpether :4)41lia 4111.W.*: a ac troth ci.im:ininz nix icazi anJ mom. 4•••.t frv.r.,A., .f:•, wr.11 n the 2D CampalFr, lily 41 t be aFiCICUPI3f, far T1IJZ L.:A.11pm* lmera (1;71. MSC: enl.1 Trji■ irr,rrei5Thm aeticyteneen 14,4`■■ 1.0444.4-i111111 RICOrd C:r - 6 ,1A ww.,•• v.• 4 zrall Oar 1ri r Jo,577 f; ic :El: 4,4 :ft or 2 - 2 441 ralater Dizri' Tncyr..• mono! 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F. M.K '41;r2.101'. Chigt E• R+ri^r: C. Harm Swartz. lkI k NTc lariticic 0ga:re:Ina Lirc E.. Stor.om • Page 27 of 37 • • HALL1 URTQN Underbalanced Drilling Performance Testimonials • July 3, 2003 Arun Big Bore Drilling Team EMOI Drilling, Production & G &G Staff Daya Turangga /OD &E Personnel Service Companies & Suppliers Dear Team: On behalf of the ExxonMobil Indonesia Onshore Drill Team, I would like to congratulate each and every member of the Arun Big Bore Team for the outstanding performance delivered on the Arun CIV - 2a well just completed today. The overall performance on this well and the continuous improvement exhibited from previous wells is truly world class and is undoubtedly one of the highlights for ExxonMobil Drilling worldwide this year. You should be extremely proud of what has been achieved and in recognition of your efforts you will be receiving an Arun Big Bore carry bag as a token of our appreciation. There were several outstanding achievements and the following are a selection of the most noteworthy. • "Incident Free Well" This well was drilled incident free. In fact this well continued to build on the incident free days which now stand at 82. In addition you have achieved 2 consecutive months without an incident of any kind. Our goal is "Nobody gets hurt" and nobody was on the CIV -2a. • Execution of the well from spud to TD and completion in a total of 19.9 days. This is over 14 days (42 %) faster than the previous best which was the CIII -16c. It is important to note that the CIII -16c was a pacesetting well itself earlier this year. The major contributors to drilling time reduction were: 17 -1/2" Interval- New APO record of 3068' in 24 hours Overall Improvement of 2 Days over previous best 10" full string- Resulted in overall savings of 8 days over previous best • Achievement of the highest feet per day progress rate ever achieved in a Big Bore well. At 531 fpd - this is 68% faster than the previous benchmark set earlier this year. • Realization of the lowest Big Bore NPT ever at 0.5 days and below 2 %. • Flawless execution of the drill -in liner and UBD phases of the well We have believed as a team that we could significantly improve our safety and operational performance to a level many believed unachievable. Your tireless pursuit of excellence, exceptionally high safety standards and expectations, and your willingness to continually improve have all contributed to the success that has been achieved. Again, I would like offer my profound thanks for a job well done and look forward to what we can achieve on the CIV -22 and the CIV -6a. Charles R. (Chuck) Riebe Drilling Operations Supt. Page 28 of 37 HALLIBURTDN Underbalanced Drilling Performance Testimonials BP Amoco Press Release March 04 on 2 year Extension of Halliburton UBA Contract BP Amoco Sharjah has extended by two years an existing contract for Halliburton's Energy Services Group to provide underbalanced drilling (UBD) services in BP's Sajaa Field in Sharjah, United Arab Emirates. The extended contract capitalizes on the safe and dependable application of underbalanced services already provided by Halliburton. BP recently completed its 10th well in a very successful application of underbalanced drilling in the Sajaa field. A consortium is providing services for the BP project where Halliburton is facilitating the underbalanced portion with its advanced Four Phase Separation System, a key component in the delivery of the Halliburton Underbalanced Applications service. Using Halliburton's technology, well stream fluid returns are processed to optimize use and conform to stringent environmental requirements. Hydrocarbon recovery entails the compression and re- injection of gas and the pumping of condensate into the production line. Solids and produced water, once confirmed environmentally compatible, are disposed of to dedicated land farms. On the project, Halliburton is also using its SCANTM3 and INSITETM Data Acquisition and Management System, which gathers and processes data from all sources and presents them in a common format throughout the onsite SCAN network system. Randy Pruitt, BP Sharjah Oil Company's drilling manager, said: "BP greatly appreciates Halliburton for the effort in the Sharjah UB CTD program, which has helped BP Sharjah reach the five million man -hours and five years without a DAFWC lost -time incident." "We are excited by the success BP is enjoying in Sharjah and are pleased that underbalanced drilling technology is enabling them to outperform benchmark production values in the field," said Gary Godwin, division vice president, Tools, Testing & Tubing Conveyed Perforating product service line, Halliburton. "Our UBA team has proactively supported a successful safety program led and committed to by BP, and we have been recognized for our leading role. We are also pleased with the opportunity to provide our reservoir- focused approach as the project moves from an initial prototype investigation to a longer term project. As the industry recognizes the value of this reservoir performance- centered approach, Halliburton looks forward to providing UBA services to a wider array of reservoirs such as fractured carbonates, reverse condensate drives, lower pressure maturing fields, and others." i Page 29 of 37 • HALLIBURTON Underbalanced Drilling Performance Testimonials Statoil Press Release on completion of Well C -05A, August 04 New drilling method on Gullfaks Underbalanced drilling technology has been used for the first time on the Norwegian continental shelf to implement a Statoil well on the Gullfaks field in the North Sea. This method was employed to bore through the cap rock in well C -05, which has been drilled from the Gullfaks C platform. The job was done by Halliburton, which has long experience internationally with underbalanced drilling, in cooperation with drilling contractor Prosafe. "Oil worth about NOK 1.2 billion is unrecoverable from Gullfaks with conventional drilling methods," explains Johan Eck - Olsen, project manager for underbalanced operations in Statoil. Now that we've succeeded in applying this technology, the accessibility of these reserves could help to extend the producing life of the field." A second underbalanced well is due to be drilled from Gullfaks C later this autumn. The new technology is needed because the upper section of the cap rock in the Shetland structure has fractured as a result of water injection. Since the difference between pore and fracture pressure is small, drilling this rock with conventional methods would be difficult. During regular drilling, a well is filled with heavy mud which creates a downhole pressure higher than the formation pressure to prevent any inflow of water, oil and gas. Underbalanced drilling uses a lighter mud, giving a downhole pressure below that of the formation being drilled. This allows formation fluids to flow into the well in a controlled manner. The fluid can then be collected and conducted to the platform's process facilities during the drilling phase. "In the longer term, adopting underbalanced technology could allow us to get more resources out of fields like Kvitebjern in the North Sea," says Mr Eck - Olsen. • • "This development comes on stream during the autumn, and its reservoir pressure will have sunk so much after just one year that underbalanced drilling could be appropriate." He adds that Statoil is looking at international opportunities for using the technique to optimise recovery and producing life on fields it operates in such countries as Algeria and Iran. By Bente Bergey Miljeteig Published 24/08/2004 10:05:00 Copyright © Statoil. Page 30 of3% • HALLJBURTDN Underbalanced Drilling Performance Testimonials 2003 Press Releases FOR IMMEDIATE RELEASE: July 7, 2003 HALLIBURTON TECHNOLOGY USED TO COMPLETE FIRST UNDERBALANCED DRILLING PROJECT IN THAILAND HOUSTON, Texas - Amerada Hess recently completed the Phu Horm 3 Sidetrack well in northeast Thailand using Halliburton's (NYSE: HAL) underbalanced drilling technoloay. Utilizing Underbalanced Drilling (UBD) technology was a first for Thailand. The primary objective of implementing UED was to drill the well safely while maintaining pressure control and minimizing the severe fluid losses experienced while drilling the over-pressured reservoir section of the Phu Horm 3 well. Other objectives were to reduce formation damage and to be able to evaluate productivity and reservoir characteristics as the well was drilled. As part of the UBD contract, Halliburton's Underbalanced Applications. (UEA) group provided upfront engineering and site supervision, including UEA drilling and reservoir engineering, and a highly trained team of on -site underbalanced driilir,o specialists and operators. Other services Halliburton provided include cryogenic nitrogen, the uniquely designed Four Phase Separation System, SCAN" and INSITE'" Data Acquisition and Management system, condensate handling and storage, gas flare system, completion equipment and ancillary equipment such as downhole gauges and non - return valves. "We are delighted to support Amerada Hess on this very exciting project," said Gary Godwin, division vice president, Tools, Testing & Tubing Conveyed Perforating, Halliburton Energy Services. "Using Underbalanced Drilling technology enabled Amerada Hess to successfully drill the Phu Horm well. This would not have been possible using conventional drilling techniques and confirms that this technology has real application in drilling fractured carbonate reservoirs of this type. The future potential for growth of UEA in the international arena is very promising, as more and more major operators start to ciscover the significant benefits of this technology in terms of production enhancement, accessibility of incremental reserves, and the reduction or elimination of drilling problems." Halliburton Energy Services, a business unit of Halliburton, provides products, services, and integrated solutions for oil and gas exploration, development, and production. Capabilities range from initial evaluation of producing formations to drilling, completion, stimulation, and well maintenance - for a single well or an entire field. With more than 300 service centers in more than 100 countries, Halliburton possesses the global perspective that is increasingly important for energy exploration and production. Halliburton, founded in 1919, is one of the world's largest providers of products and services to the petroleum and energy industries. The company serves its customers with a broad range of products and services through its Energy Services Group and Engineering and Construction Group business segments. The company's World Wide Web site can be accessed at www.halliburton.com. Contact Zelme Branch zelma. branchehal liburton.com Public Relations (p) 713.759.2601 • Page 31 of 37 • • HALLJBURTON Underbalanced Drilling Performance Testimonials 2004 Press Releases FOR IMMEDIATE RELEASE: May 3, 2004 HALLIBURTON WINS SIX EBUP MERITORIOUS ENGINEERING INNOVATION AWARDS HOUSTON, Texas - Halliburton (NYSE:HAL) announced today that it has won 6 E &P meritorious engineering awards for 2004. Bill Pike, editor in chief for E &P presented the awards today at the Offshore Technology Conference in Houston. "These awards represent the hard work and dedication of Halliburton employees and our commitment to staying at the forefront of technology development," said John Gibson, president and chief executive officer of Haliiburton's Energy Services Group. "It is an honor for Halliburton technology to be recognized year after year by this prestigious committee. This is another example that our employees are hard at work developing solutions to ensure a sustainable future." Halliburton technologies won in several categories. Haliiburton's Drill Ahead® services won in wellbore construction systems. Halliburton's G- Force"" precision- oriented perforating system won in completions equipment. Halliburton's MicroPolymer® service won in completions systems. Halliburton's Underbalanced Applications reservoir analysis service won in subsurface characterization and analysis systems. Halliburton's WaterWeb"' treatment services won in production equipment. Landmark Graphics' ProMAGIC system won in exploration systems. "The receipt of a E &P Meritorious Engineering Award marks a company as a technological leader in the upstream oil and gas industry. The award program, now in its 33rd year, is judged independently by a panel of recognized industry experts who rank the technologies for their potential to improve efficiency, cost effectiveness, safety, and technological progress in upstream operations. Previous award winning technologies have been instrumental in the continuing technical and economic success of the upstream industry," said William Pike, editor -in -chief of E &P. DrillAhead services provides fully engineered solutions that can help increase wellbore pressure containment by creating flexible stress canes around the wellbore while sealing natural and induced fractures and fissures. This new technology can help a wellbore contain pressures higher than the natural fracture gradient of the formations through which it is drilled, and DrillAhead services engineering analyses, predicting achievable increases in wellbore- pressure containment, can be used to design treatments that help optimize well plans to reduce casino and liner installations. The new technology can be used to improve leakoff tests and save time regardless of whether there is a mud channel or a weak zone at the casing shoe. DrillAhead services' Widen the Mud Weight Window'' concept can help eliminate drilling casings or liners, which will result in deceases in both well construction costs and lost time. Unlike cement squeezes, which require tripping the drill string out of the hole, DrillAhead service treatments are designed to run through the bit. Eliminating tripping further reduces rig time and can decrease accident exposure for the rig crew. There is no waiting time for DrillAheaa sealants to set, and drilling operations can continue immediately. The G -Force precision - oriented perforating system is an internal orienting gun system that is able to go through restrictions not possible with older systems. It can align perforations in deviated and horizontal wells in a controlled manner, creel enhancing productivity potential from perforated intervals. Because the orienting rotational devices in the G -Force precision - oriented perforating system are inside the protective environment of the gun carrier, the orientation device does not need to overcome friction forces imposed by the casing. Eliminating multiple orientation subs increases shot efficiency to more than 90 %. Because verification can be made when shooting only one gun with all exit holes on a given gun aligned, successful perforation orientation can be confirmed, eliminating the need for post - perforation logging. The Halliburton MicroPolymer® (HMP''') service provides a premium water -based fracturing fluid that can be easily reclaimed and reused multiple times, dramatically reducing the need for water supply and disposal. Reusing HMP'" fluid recovered by flowback helps relieve the water supply and disposal problems because the same fluid is used on successive stimulation jobs. Because of its robust nature, HMP fluid enables successful fracture stimulation of historically difficult -to- fracture reservoirs. Excellent cleanup, about twice. as efficient and effective as conventional fluids, is achieved without the use of gel breakers. Field results demonstrate that effective fracture lengths can increase three- to five -fold over fracture lengths resulting from the use of conventional fluids. Fracture - length increases usually make significant increases in production rates ano reserves. Ultimately, HMP service may help increase the world's reserves by enabling more hydrocarbon production at lower cost. Halliburton's. Underbalanced Applications reservoir analysis service is a comprehensive engineering process that integrates and sequences surface and subsurface data obtained during underbalanced drilling and then evaluates this data to characterize the reservoir and yield valuable production data such as productivity index and permeability. Measurements are taken from Halliburton's advanced data acquisition system, which acquires data, compiles and processes information, and submits the data for transmission. Halliburton's state -of- the -art, four -phase separation equipment and downhole equipment provide the data. This "testing while drilling" methodology yields important reservoir information that can greatly change reservoir knowledge. Halliburton is creating a process to test wells during the drilling phase based on data obtained while drilling and from testing designed to fit into the underbalanced application. Reservoirs not considered sufficiently economic to merit testing are automatically tested during the drilling phase, giving an abundance of reservoir knowledge to the asset manager. WaterWeb service uses unique polymer chemistry to help create oil -water separation in the reservoir, impeding Page 32 of 37 • HALLIBURTDN Underbalanced Drilling Performance Testimonials water at the source and enhancing hydrocarbon flow to the wellbore. The resulting improved oil /gas recovery potential stems from a reduced water column giving improved natural Lift for the residual oil and /or gas. In addition, it helps justify prolonged and sustained production by enhancing reservoir drainage. WaterWeb service works by adsorbing onto the rock surface, reducing permeability to water seven to ten times more than it does to hydrocarbons. In effect, WaterWeb service creates a barrier that holds back water while allowing oil and gas to pass freely. ProMAGIC software application links the functionality of the ProMAX:j seismic data processing system to the GeoProbe® 3D volume visualization and interpretation system. This application maps the additional dimension of pre - stack seismic data into an interpretation environment for the first time, integrating the tools and technologies of • two historically independent G &G disciplines_ to enable more accurate seismic processing results. ProMAGIC software makes it possible for ceoscientists to simultaneously view terabytes of data from various perspectives or domains to identify complex Geologic trencis, destructive noise patterns, or anomalies that could potentially go undetected in a conventional seismic processing workflow. ProMAGIC system integrates the visualization speed and precision of the GeoProbe volume interpretation system with the processing algorithms of the ProMAX 3D seismic processing system, eliminating barriers to rapid and accurate prospect generation. The ESP Meritorious Awards for Engineering Innovation, established in 1971, honor the world's best new tools and techniques for finding, drilling, and producing oil and gas wells. Entries are judged on their innovation of concept or oesign, their ability to solve a real, practical oilfield problem and their potential for improving profitability, safety,•or efficiency. The judging committee is composed of experienced industry personnel from around the world with respected enaineering backgrounds and oilfield expertise. Haliiburton, founded in 1919, is one of the world's largest providers of products and services to the petroleum and energy industries. The company serves its customers with a broad range of products and services through its Energy Services and Engineering and Construction Groups. The company's World Wide Web site can be accessed at www.hatiburton.corn. Contact Beverly Scippa beveriv.sciapathThallibunon.com Public Relations (p) 713.759.2601 Page 33 of 37 • • HALLIBURTON Underbalanced Drilling Performance Testimonials 2003 Success Summary for overbalanced benchmark occurred in a near - balanced operation. Near balance does not by design, achieve Underbalanced Applications underbalanced pressures throughout the pay interval and therefore does not offer the potential to success as does true underbalanced operations. Underbalanced Applications Continues Setting Records, Out of five projects, three or 60% of the reservoirs Receiving Commendations were re evaluated for increased reserves due to much higher than expect production rates (up to 10 fold higher) coupled with significantly reduced decline rates. This increase in reserves estimates for Kent Ostroot, Global Business Manager, UBA. 60% of the projects has lead a lot of asset managers Ron Hyden, BD Marketing Manager, UBA to take another look at UBA. Industry Adoption Cycle Halliburton's Underbalanced Applications team Observing the growth of a new product in our continues to set records and receive accolades industry can be an interesting lesson in the common for lowering cost, increasing production, and characteristics of our oil field operators. This is meeting safety goals. Since becoming a Sub- particularly true for underbalanced drilling. Each PSL offering, the UBA team has been involved operator begins the tendering process with the goal of in major success stories involving both fully achieving the lowest price, but a significant issue managed project services as well as in areas quickly arises with the safety aspects involved. where UBA provided discrete equipment Operators at this stage of development look to a services. service provider with a proven safety record. As mentioned before, Hallibunon UBA has an excellent record to show and that has an impact on service Safety First provider selection. In some ways it is a minimum The most impressive lesson learned by the requirement to be allowed to entire the service Hallibunon UBA team is the value of great selection process. equipment, extensive engineered planning, and expert Next comes the requirement to reduce drilling personnel. These three items have lead to a costs, usually associated with a reservoir where consistent track record of safety that has been conventional drilling techniques make the recognized multiple times in 2003 by multiple construction of a competent wellbore all but operators. The UBA team has received special impossible. While these are good opportunities, they bonuses paid directly to personnel paid by the do not necessarily take full advantage of what operating companies as well as multiple letters of Halliburton's UBA process could do to positively commendation from such operators as ExxonMobil impact an operators bottom line. Nevertheless, and BP. This in spite of the fact that 3 times this year Hallibunon UBA did indeed receive multiple the UBA team experienced sustain production rates commendations for reducing the overall Non of over 40 mmscf /d being produced up the back side Productive Time associated with drilling by using while drilling operations were underway. Make no underbalanced techniques to avoid the common mistake, the UBA team was properly humbled by the problems of stuck drill pipe and uncontrolled fluid experience. But as we close out the year, our UBA losses. In one case, the records set were broken by crews are justifiably proud of the fact that every one each of three successive wells. The overall drilling of the high end Class 5 wells performed in the last 18 curve summary is presented in Figure 1 below. months were done by Hallibunon. Latest Scorecard Results In the most recent 5 projects where UBA provided full project management as well as equipment, the operators experienced 6 out of 7 wells (86 %) where production exceeded the conventional overbalanced benchmark in their respective fields. In these campaigns three production records were set in as many different countries. The one failure to beat the Paee 34 of 37 • • HALLIBURTN Underbalanced Drilling Performance Testimonials Days vs Depth including Halliburton, the project was kicked off on the Phu Horn 3 in early 2003. Drilling operations -c 19 Wan n 92 progressed smoothly as scheduled to first cut of pay. -- ^CI -20 War 92) 1 - CI.21N9r92) The initial upper pay deemed non- . - 0049)FW92) 1. PP er P Y horizon previously Y .... C i' commercial began contributing significant flow rates 2.000 7' - CIII -0, ID.c 92) i - CIO-,9 09996) ;; as flow- drilling progressed. Upon entering the CII420 War 93) I 3.000 - CIV. 8288 93) ;' secondary pay objective the production rates .-- CIV.12 )2V9 93) -CH-2108n 92) stabilized at 45 mmcf /day with a minimal reservoi r .,900 `^^C3.10s)JulWj d Th d °''°''° °') ra�a a tarpet zone was com lete o 0 3.52 (0.3 92) L1 P P 5 0 ... ....... �C3•,iC )i.0 w1 li �G -1, )2p903) hole. 9,000 l , — " ° — " �^ °" The success of this well has now opened the door € to a new $ 200 million five year development plan for 1 9 ''°°° _ the Phu Bonn field. This development could also - t major pipeline project .999 , . lead o a n for p pelme p o� by the Electric t Generating Authority of Thailand to transport the gas 9.000 1) I `, from Phu Horn to the generating plant at Nam .:...... —. f `---�� Phong. „� \,� The Underbalanced Applications (UBA) approach by Amerada Hess and Hallibunon produced a total i reservoir solution that was made possible by an — • 13.000 ............. 2 5.00 . 5. ... .. ._... integrated delivery of underbalanced services along 21fi ar•,rMr1391,d , with exclusive separator technology developed • "'°°° specifically for the underbalanced environment. The 18000 results yielded an underbalanced well construction 0 10 20 30 30 50 90 70 80 90 100 110 120 process that provided all the traditional benefits while Days 7.89 •900 offering the operator extremely useful information Figure 1 and knowledge about the reservoir that would not After meeting the overall drilling objectives which otherwise been available. • usually were the basis of the underbalanced project. The standard approach to underbalanced well the impact on production rates begins to gamer construction allows: significant visibility. As mentioned in the scorecard • summary above, operators are having great success Reduce formation damage during the drilling and on underbalanced campaigns when they rely on completion phase • Halliburton's UBA team provide and insure a true Increase future reservoir recoverables by 30 to underbalanced environment throughout the pay 50% interval. In the case illustrated by the drilling chart of • Increase ROP by up to 50% or more Figure 1, record production rates were achieved even • Increase value by producing hydrocarbons while though the well was in the lowest pressured section of drilling the reservoir! The reservoir pressures experienced • Reduce lost - circulation costs were below 50 bar. In one of the most impressive • Reduce risk of lost -in -hole equipment . cases this year, the production outcome effected not • Reduce rig time associated with sidetracking only the operators bottom line, an entire country The Phu Norm project raised this approach one received a direct benefit. level by offering a reservoir analysis solution while . drilling underbalanced. Thailand Power Generation Wildly Successful The Electric Generating Authority of Thailand's Industry Finds the Value 660 megawatt generating plant serving the northeast The industry therefore is exhibiting a clear adoption Udon Thani Province had been cut to 240 megawatts cycle for UBA. Expressed in Figure 2, the cycle due to declining gas supplies in the area. With gas initiates with safety and overall HSE performance supply rates cut from the original 100 mmcf /day to 50 plateau. Next comes the desire to solve an expensive mmcf /day, power generation for the area was in drilling challenge economically. In a surprisingly jeopardy. consistent pattern, the operator yields a successful Amerada Hess chose to evaluate the local Phu production result, usually involving record production Norm field with the unconventional approach of rates. At this point an asset level awareness results underbalanced drilling for the objective of increasing and major field development plans are changed. production potential and increasing reserves. While not allowing Hallibunon to publish some key Working with consulting and service companies well information, Shell Exploration and Technology Page 35 of 37 • • HALLJBURTON Underbalanced Drilling Performance Testimonials has published in their own external publication, reservoirs, with substantial capital savings as a "Changes" (volume 4 May 2003), a very informative result." This quote says it all. The financial gains quote from Brian Truelove, Global Implementation seen by the oil companies have far outstripped the Manager for Underbalanced Drilling. Brian is quoted incremental increase in daily rates for drilling as, "What we're getting is a real -time well test whilst services including UBA vs. without UBA. drilling, which is giving us information we newer had Hallibunon's UBA offering is already following he fire and for several fields this has completely the pattern of classic disruptive technology and the changed the way we go about developing these industry is starting to respond. Figure 2 Maximize Asset Value lmproe- Reseivoir Performance`:, : ;; Reduce;w= ' AFE r Cost x£ HSE Page 36 of 37 • • HALLIBURTDN Underbalanced Drilling Performance Testimonials Nalliburton Published SPE Papers and Articles SPE 59743 — Reservoir Characterization During Underbalanced Drilling: A New Model. SPE 81 625 — Comparison of Wellbore Hydraulics Models To Maximize Control of BHP and Minimize Risk of Formation Damage. SPE 85294 — A Safe Approach to Drilling Underbalanced Starts With Project Management. SPE 85319 — Underbalanced Drilling for Production Enhancement in the Rasau Oilfield Brunei. SPE 72513 — New Generation Underbalanced Drilling 4 -Phase Surface Separation Technique Improves Operational Safety, Efficiency and Data Management Capabilities. SPE 90196 — Maximising Reservoir Potential Using Enhanced Analytical Techniques with Underbalanced Drilling. SPE 90185 - Underbalanced Drilling Of Fractured Carbonates In Northern Thailand Overcomes Conventional Drilling Problems Leading To A Major Gas Discovery • Page 37 of 37 • • 1. McEVOY IYPE C 3 1/6' -5000 P51 flea VALVE 2. MOM 0Y IYPE C 2 9/16' -5000 PSI 0AIE110LVE J. SMPGO 2 1/16 -10000 P51 REMOTE CHOKE CHOKE MANIFOLD SC EMATIC 4. n1- GRAYER 31/6 -5000 fSI IIAKUAL WOKE NABORS ALASKA RIG 106K1W S. RANGED TEE 21/16' X 2 I /16' X 2 1/16' - 500o PS1 • ' 6. 5 MAY ft BI 3 1/6' X 3 1/6' X 2 1/16' X 2 1/16 X 2 1/16' -5000 PS1 • 7. 5 MAY flow 6LOCKk3 1/e X 3 1/6' X 3 1 /6' X 3 1/6' X 2 1/16' -5000 PSl • 3% . 11. 4 MAY fl.0w 6t.CK 2 1/16 X 2 I/16' X 2 1/16' X 2 1/16' - 5000 P51 T • 9. 2 1/16' -5000 PSI SDI= BLOCK • S41 ' 10. 2 1/16'- 10.000PS1 x 2 1/16' -5000 PSI SPOOL • • S '`f' ,Up� It. 3 1 /6 X 2 l /16• - 5000 P9 SPOOL TpR .12. 2 1/16' X 2 1/16 -5000 PSI SPOOL • • , • 13. 3 1 /6' -5000 P51 x 2 1/16' -5000 PSI SPOOL • 14. 2 1/16' - lo.Oo P9 X 2 1/16 -5000 P51 OOUOLE SIUO AOAP*OR Q 15 15. 2 1/16' -5000 PSI RAM RANGE 16. 3 1/6' -5000 PSI POET RIME • 34 15 / 20 © : 17. 3 1/6 -5000 P51 X 2 1/16' - 5000 PS 0000LE STUO MAP= . p '. 16. 3 1 /6' X 3 1/6 5000 P51 SPOOL p Y r I- � I 19. 3 WA flow BLOCK 3 1/6' x 3 I/6' x 3 1 /6' -5000 PSI Ne 2 1► • 20. 5 ma flow BLOCK 2 9/16' X 2 9/16' X 2 9/16 X 2 9/16' X 2 9/16' -5000 P51 • Z' mp 3•TO ( ts� �\ ch S iiq „ 0 74 © 0 � g m 3 . Gti • o �� s O z 13 © C 16 • . • L1V ,, _,1,.1-c., S't,!-ti:-i+',. • fib mown Akwio na c'� .'". . Alb= .w 1 NABORS ntASKA it4 ILnC It . CMORE woo= SC11E1N6C ' 4p4/4r' 1a Imo me woes _ a i i}l��!!'' - . ' . °" �' -'�` S` 'OV"°' -- fns .14 win L4 1YC_9094 1 a 1 • ./ , 1 . HYDRO_ • . • ANULAR BOP • • 3 ' -114" , FLANGED SCREWED HEAD CONNECTION • • • i 1 47 3/4 LENGTH ----- -- - - -+ - - - -- - ---• 11' 50001 4.-r I FLA NGED HYDRIL • 13 -t DOUBLE LATE PREVENTOR " 3 1/8" 50001 HCR VALVE ` 55" LENGTH • 3 1/8" 50001 HCR VALVE 3 CHOKE UNE ff ■ IIy� NNE • — • 1 ' - �1 1� �1: Z_,KILL LINE_ _''_." -"__ j� 1 ? _E tl� 1 ja I t } x2 • 3 1/8` 5000/ GATE VALVE 1 1 T !� : 3" 50001 GATE VALVE HYDRIL 11 " 5k PSI • 3' -9,' - -- -- - -- -- --- --� HYDRIL RAM SINGLE GATE l I - f"'C %4 O LENCT R FI� 41 1 1 } '1 • NABORS ALASKA RIG 19AC . • ' BOP STACK CONFIGURATION • A ..... �.. .— Alicia m ¢ w.. a.. w • 7112 M¢Ot75 Nw9N 70. �sd G(w -plI filYW7q $Ldx Ll►ALUN71Ln Mr 4 la WWI •a nano _ 1 : ma - be &IAN –__ me X w ' 4 . . r - 2,'R"'4i' 414 .waw aru¢wiri • • • • • . . ' 11 ' r 11.Yp i ' • i L _. .. , .. R .1r15AA �SII R MSf�Miw == vvvevu wow it 410101: . I ar mor.a[ s a SOT wx . • 172111111111111 I p C===123 1i -#1 U:91111 Styli Pa 1 sMI 1;41 tro o IAIAIiR • I I ►lrl�l == r; Nii _� NMI ir1111! 1`111 • II NI L , 1 ---1 11 n lillumll►ti, • f Boa a • 'W., tNBORS AMIN fYC IYAC . . 1LW . 21 .. 1 /e OREM • . y.pwr . .• RAW w~II .' illthrl _ LC. BOO) A o.. 2 .. S. manna. SA IV SI1 w 111C -11004 $ i • • Legend 4%, .. :P.. i 1 Ao -bult Conductor o • B L. 9 . • s ; r ■ • . ,1 • • do c. : '� k « 4 ° • # i' '{ 'I 71 ..0 P '$ • Location Map • GRAPHIC BCAIB 0 . • • . 40 • • # �s 4 0 � .q . ' ,b • '. • P' {4 . _ ;_ *1 1 1 • /er, ,' ....• �'✓ • p � 4 • • x / • • • p - • 1 aii• G. Dori o ' • f s. %• \ No. 4110.5 • s '' ' j ryp � • h • ° : ' , p ... � • �O ,� ‘1% 40 F ESSioNA 1 . 1 F' ! • it,' • • • M•■ . ,,, , 4.;:r • • t1 . Planner Natural Reoouo•• JOB NAME: Ooogwuk DM Site DRAWN BY: BL !CHECKED BY: MJD . • LOCATION: Protroo•d Radon 11 SCALE: 1' - 30' • Township 13 Aar% Range 7 Loaf'. DATE: 7 -12 -07 • • • Umkit Mariann !, • Hot% NANUQ JOB NO. SHEET Coordinotte• are listed on sheets 3 and 41 DESCRIPTION: ' A{a•ko Nod 27. taro 4 Conductor Ae - Plan '• 05204 1 of 4 • • 0 • � l " CC .I -I L 1 •opirifict Podry 1 .m . SE Corner of 1 ~— c `` oocauRux nt Protrocted Section' 11 s •• � a !1 a : • �, e $ �1 Coordinates ,.1 N 60281 I if i i E 40989.01 1 vl ` ° R ef: AK BLM . _ " • ¢! ` Harrison. Boy . Troct .' 1 , s n " ' F r. Or . . .. is . 1 .. 'N t bk rt`s� -�c • /1 fie ' • s..., 4- t C rs!,ore lcero SR iot 1 1 � � e ar S hore le croot� :3 S7= s `- Pi 20 to Doan_ +r .,k C)t Pi 7 i0 P, .0 :s V��� a a ,, • `t\ L a a I } • i iiii i /0 - -. .01-17 iunCrO Icar00 ` s y , T D S 3N s:O.i" P . Roods to`.. . Pi - '' Dh li 1 . 4'11 il Basis of Location • 1. - B'•c 1 ? 'E -_ , Monument - DS -3H West M umen# � 1 V Coordinates Mgt A 1 ' a� s�, _ N 6001016.61 I E 498081.23 STAKED P1 INFORMM10N ONLY � o p F /, .- ' r , ' • j Ref.:Lownsbury & Assoc. . p � ! � , - , 1 t g Drawin No. ' NSK 6.01—c1672 J * .r? �1 T 'T. ' t * ,+ : -:' 1; - ? i, Z ' tip G. Davis : =! "4 st'v+ = • ti , I S �� No. 4 t 103 �S' >�AgL�4 =` : • : , .• s Pioneer Natural Resouces JOB NAME: Ocoguruk Drill Site Conductors DRAWN 8Y: BL CHECKED BY: MJD LOCATION: Protrocted Section 11 SCALE: N/A Township 13 North • Range 7 Eost DATE: 7 -12 -07 Umiot Meridian NANUQ JOB NO. SHEET DESCRIPTION: Basis of Locotion 05204 2 of 4 0 • _ --,. ,-, • - W - NQ. .. _ .... ___ __ ._ _1 _ ____ _ •.. x - --- _etiltitie .. i : P. fl9A A.' A -- psi . Y 6,051,151,52 46592945 70 29 45 15014 45, 5055 1977 - 14,50 - 2 - 6 - A 7 1,146:n --- 469,915,52 7029451 15 4550922 5050 1052 15.50 • 3 ----- 5,031 59 --- -459:9i0,e - - 70 - 29 46,1 150 14 45,75575 6925 108 15 4 6031, --- 469,905,51 7 7 . 0 29 4 509455 - - 150 14 4589799 -- --- 3020 Wet --- - 5 -- 5 - ,0 - 5 - 1 - ,151 - , - 4 - 5 -- -. 469,900,74 - ' -. 160 1 5015 - 1097 1550 6 5,051,126,51 4 69,595,50 - 70 29 46,V$650 150 1 :?010 1102 - 1 $ ------ 6,0 U:3 469,555,15 70 2545 150 14 46 2997 1115 1 6 - - - - - 6,0 ---. 1 15 4 7Q,1303 2992 1120 .1$ 9 570 $ - 49:67 a To 29 47 54 - 150 - 1 - 4 - 464514 29 1125 I - 0 ---- 6,01,090,76 -- 469855,56 .-- - 70 29 4- 5,72256 - • 150 14 -- 2$62 --- - 1540 1F 5,051,095,541 469, ff5,59 70 29 46,57598 150 .47.15750 - 2977 11$5 15,50 111WW1111 6,01,.1:43.8.67 0, F84 - 70 - 2945,62490 1501447.261 7T 2972 1140 15;50 ------ ,076,06 469,545,51 70 150 14 47765256 2960 1152 1$5 503107 9 46984087 --- 70 29 45,44952 150 47,79770 2955 1157 1 OEM 6,01,006.16 - 459,555,96 - 70 29 45,40055 - 150 1 47,94165 2950 1162 16 6,01,06118 469,881,0,4 - 70 29 45,55145 150 14 0,05555 2945 -- 11 1550 17 6,051,056,25 469,526,11 70294530277 - 150 2940 1172 -- 13 - ,50 113 - 6 . :031 :a1 :27 - - 4e o:62r, iv -- *7o -- .4t - , - f5:$ - 0 --- 16 - 0 --, 1 - 4:407 - 4.075 --- 2035 1177 f3:50 Tt 601,055,52 459,50550 10 20 150 14 45 2922 1189 1550 - 2 - cr - 0,0 - 469,60:69 . ---- -- 10 -- ,0761l - - iw - io 4 - 2917 1194 15,50 21 6,03102 4.69,7962 70 29 150 14 4505552 2912 1199 15,50 22 6031 02258 -. 46070 - , -- 67 - 70 2.9 44,95014 150 144515144 2907 25 6;051,010,57 469,766,76 70 29 441,0067 - 1 gi iTO0:i 2902 • 1209 15;50 • 24 6, 05 - 45575.5.847 44,55159 150 'To 40,-46K0 2597 1214 f$,50 • - .7 oF .44 41 1 4. , •••.:41 ---' - . : . -- 0- ---- . - ,,44, -- .- i .--------- ...... . . . . . . o f*/ 97 ,5,.... \ * • • e , • • :••• I , •,• .:;;.-... _,, .7. Philip G. Dovb • ., § A° • ... - ' '...Z 1 '.. ..% No 4110-5 : 1.1 6- 0 4 , ... .. ..... • o to 4 ., 7 1 1:--ZS:it ;:.4 1 AWE, 0 im. v .... - 4 -4- , 'i:' ll: •-zr. , 1 • Net 1: ritArtiVig or boeed on 8P MCgn US, Le*, 2. Coordinote or i_Dgf,cci an Aickg Stote Plone Nod 27, Zone 4, 3, All conductore ore within Protrocted Section 11, Pioneer Nolurol Revoucee JOE NAME: ocv9un.* ()rill Site Conductors DRAWN E3Y; 9L CHECKED BY: M JD LOCATION; Protrocte0 Section 11 1 North SCALE: N/A Townchip . Ronve 7 Sert DATE: 7- Unit meridion _.__ NANILiC? JOB . NO, SHEET DESCRIPTION: A*-built Cooreinotes 05204 3 of 4 0 _V��11-t�1,, Alaska Elate Plane Section Line Offset Y X - L�tde� o�it�d_ t-E1L >? E 25 6,031,128.32 469,943.64 70 29 46.01630 150 14 44.77930 3013 1055 13.50 26 6,031,123.35 469,938.69 70 29 45 :96722 150 14 44.92442 3008 1060 13.50 1 27 6,031,118.33 ' 469,933.76 70 29 45.91765 150 14 45.06895 - 300 1065 .13.50 28 6,031,113.39 ' 469,926.86• 70 29 45.86887 150 14 45.21260 2997 1070 13.50 29.' 6,031,108.44 469,923.95 70 29 45.81999 150 14 45.35655 • 2992 1075 13.50 30 6,031,103.45 469,919.01 70 29 45.77071 150 14 45.50137 2988 1079 13.50, 31 6,031,090.65 469,906.38 70 29 45.64431 150 14 45.87163 2975 1092. 13.50 32 6,031,0E5.68 469,901.39 70 29 45.59523 150 14 46.01793 2970 1097 13.50 33 6,031,080.67 469,696.50 70 29 45.54576 15014 46.16128 2965 1102 13.50 _ . 34 . 6,031,075.73 469,891.57 70 29 45.49698 150 14 46.30581 2960 1106 13.50 35 6,031,070.76 , 469,886.60' 70 29 45.44789 150 14 46.45152 2955 . 1111 13.50 36 6,031,065.83 469,881.69 70 29 45.39921 150 14 46.59547 2950 1116 13.50 ' P ,'31 00-- 659.00 70 20 4 -2€4_ 5A- 1.4 -46, 5749 7937 .1129 13.50 38 6,031;047.99 469,864.14 70 29 45.22304 150 14 47.10995 2932 1134 13.50 41."" 39 6,031,043.03 469,659.20 70 29 45.17406 150 14 47.25478 2927 ' 1139 13.50 40 6,031,038.10 469 70 29 45.12537 150 14 47.40108 2922 .1144 ' 13.50 - 41 6,031,053.05 469,849.29 70 29 45.07551 150 14 47.54530 2917 1149 13.50 NM 6,031,028.13 469,844.38 70 29 45.02692 150 14 47.68925 2912 1154. 13.50 MN 6,031,015.46 469,831.70 70 29 44.90180 150 14 48.06099 2899 1166 13.50 44 6,031,010.49 469,826.79 70 29 44.65272 150 14 48.20493 2894 1171 13.50 45 . 6,031,005.53 469,821.86 70 29 44.80373 150 14 48.34946 2889 1176 13.50 46 6,031,000.54 j 4 69,816.94 70 29 44.75446 150 14 48.49369 - 2884 . 1181 13.50 •47 6,030,995.50 . 469,811.98 70 29 44.70469 150 14 48.63910 2879 1186 13.50 48 6,030,990.58 469,807.07 70 29 44.65610 150 14 48.78304 2874 1191 • 13.50 y �E of A� q �,, SURVEYOR'S CERTIFICATE • • -- �'!t�•- ••• I HEREBY C ERTIF,Y THAT I AM o' ••= � '. PROPERLY REGIS` EREISANI3� �• ' •� - " _ .0 ..it 4 • TH � ,'A i . LICENSED TO PRACTICE LAND .. .E � 4 � ` / "' SURVEYING IN THE STATE OF xx ::° `' "�.�� / ALASKA AND THAT T•NiS PLAT �. : ` 11 REPRESENTS A SURVEY DONE BY 'nip G ;Dove o` / '14-`44.44W-1W;1"- • . / ME OR UNDER ,..._• '�,\ No.41104 ... ER MY SUPERVISION s t a f .b • .o I�,, •�•. .�,! AND THAT I BELIEVE THAT ALL -te . r d""' . i" � 1 {.� ft '•• ,i 4 DIMENSIONS AND OTHER DETAILS 1, 1 z '� los.,. ARE CORRECT AS SUBMITTED TO `'- ='►`.� _�y • • ME BY NANUQ, INC. AS OF JULY `" 12TH, 2007. Pioneer Ncturol Resouces • • JOB NAME :' Oocguruk Drill Site Conductors DRAWN BY: 81 I CHECKED SY: MJD. LOCATION: Protrocted Section 11 SCALE: N/A Township 13 North Ronge 7 Eost DATE: 7 -12 -07 Umiat Meridian NANUQ JOB NO. SHEET DESCRIPTION: As- -built Coordinotes 05204 4 of 4 • • Page 1 of 1 Davies, Stephen F (DOA) From: Campoamor, Kathy [Kathy. Campoamor @pxd.com] Sent: Tuesday, September 30, 2008 12:42 PM To: Davies, Stephen F (DOA) Subject: FW: ODSK -38i Directional Attachments: ODSK -38i KupD wp08 Planning Report DRAFT.pdf Here's the directional for ODSK -38i. Sorry for the delay. Regards, Kathy Campoamor Engineering Tech II Pioneer Natural Resources Alaska Inc. phone 907- 343 -2183 fax 907 -343 -2192 From: Vaughan, Alex Sent: Tuesday, September 30, 2008 12:38 PM To: Campoamor, Kathy Subject: ODSK -38i Directional Alex Vaughan Operations Drilling Engineer PIONEER NATURAL RESOURCES 907.343.2186 (office) 907.748.5478 (mobile) 907.343.2190 (fax) Statement of Confidentiality: This message may contain information that is privileged or confidential. If you receive this transmission in error, please notify the sender by reply e -mail and delete the message and any attachments. 9/30/2008 • Well Planning - Pioneer - Oooguruk Oooguruk Developement Oooguruk Drill Site ODSK -38i - Slot ODS -38 ODSK -38i KupD Plan: ODSK -38i KupD wp08 Standard Proposal Report 25 September, 2QIII HALLIBURTON Sperry Drilling Services - WELL DETAILS: ODSK -38i 1 REFERENCE INFORMATION Co-ordinate )R f Well 51 Slot North HI'SIrLIBURTCIN Ground Le v el: 13.5 Vertical encal (TVDTVD) Ref ce 44 4' + + 13.5' ®57.511(Nabor 19AC) ors 19AC) fi +N / - +E/ - Northing Fasting Lattttude Longitude Slot Measured Depth Refe e' 44 + 13.5' © 57 5ft (Nabors 19AC) g g 8t Calculation Method. Minimum Curvature Sperry Drilling Services 0.0 0.0 6031047.99 46986414 70° 29' 45.223 N I50° 14' 47.110 W 0135-38 • 4'1ONEER i WELLBORE TARGET DETAILS (MAP CO- ORDINATES) SURVEY PROGRAM Date 2008 09 24T00''00:00 Validated. Yes Version. Name TVD +N / -S +E / -W Northing Easting Shape Dep[hFrom De 1h To survayrPlan Tool Project: Oooguruk Developement KupD v8 Ti 6017.5 2410.3 738.2 6033455.00 470612.00 Circle (Radius: 100.0) 44.0 �aoo.o ODSK -38i KupD wp08 cs GVRass 1400.0 7363.6 0059 -381 KupD wp08 MWD +SAG *CA +IIFR +MS Site: Oooguruk Drill Site Well: ODSK -38i Wellbore: ODSK -381 KupD FORMATION TOP DETAILS CASING DETAILS COMPANY DETAILS: Well Planning - Pioneer - Oooguruk _1 Plan: ODSK -38i KupD w 08 o 1 P P TVDPath TVDssPath MDPath Formation TVD MD Name Size Calculation Method Minimum Curvature 1657.5 1600.0 1664.6 Base of Permanfrost 3000.0 3028.2 9 5/8" 9.625 Error System: ISCWSA 2284.4 2226.9 2301.2 Top West Sak 6210.9 7363.6 7" 7.000 Scan Method: Tray. Cylinder North 2887.3 2829.8 2913.4 Hue Shales Error Surface. Elliptical Conic 2973.2 2915.7 3000.8 Tuffaceous Shales Warning Method: Rules Based - 600 - 4300.1 4242.6 4444.4 Bookian 2B - J 5027.6 4970.1 5527.8 Top Torok Sand 5304.7 5247.2 5957.7 Base Torok Sand 5767.7 5710.2 6676.0 Top HRZ SECTION DETAILS • 0- 5895.8 5838.3 6874.8 Base HRZ 5977.2 5919.7 7001.1 Kalubik Marker - 6015.4 5957.9 7060.3 Top Kuparuk C Sec MD Inc Azi TVD +N / -S +E / -W DLeg TFace VSec Target _ 1 44.0 0.00 0.00 44.0 0.0 0.0 0.00 0.00 0.0 - 2 600.0 0.00 0.00 600.0 0.0 0.0 0.00 0.00 0.0 600- 0° 3 1100.0 5.00 160.00 1099.4 -20.5 7.5 1.00 160.00 -17.5 Start Dir 1.00/100' 600.00' MD, 600.00' TVD 4 1433.3 10.00 160.00 1429.7 -61.4 22.3 1.50 0.00 -52.4 5 1657.0 10.00 160.00 1650.0 -97.9 35.6 0.00 0.00 -83.5 6 1758.5 10.00 160.00 1750.0 -114.4 41.6 0.00 0.00 -97.6 1200- Start Dir 1.50/100' 1100.00' MD, 1099.40' TVD 7 2608.5 10.00 13.38 2587.1 -108.0 152.0 3.00 -90.00 -59.8 8 2908.5 10.00 13.38 2882.5 -57.4 164.0 0.00 0.00 -7.8 End Dir 1433.30' MD, 1429.70' TVD 9 3028.2 11.80 13.38 3000.0 -35.3 169.2 1.50 0.00 14.8 - Base of Permanfrost ... 10 3048.2 11.80 13.38 3019.6 -31.4 170.2 0.00 0.00 18.8 10° 11 3328.5 16.00 13.38 3291.6 34.1 185.8 1.50 0.00 86.0 1800- Start Dir 1758.50' MD, 1750.00' TVD 12 4228.5 29.50 13.38 4119.7 371.9 266.1 1.50 0.00 432.7 S ar r 3. . , . 13 4810.5 49.87 13.02 4565.2 731.9 350.2 3.50 -0.79 801.6 = 14 7063.6 49.87 13.02 6017.5 2410.3 738.2 0.00 0.00 2520.7 KupD v8 T1 15 7363.6 49.87 13.02 6210.9 2633.7 789.8 0.00 0.00 2749.6 0 2400 -- To p West Sak - - - - End Dir 2608.50 MD, 2587.10 TVD Lo -- -- C 1 Hue Shales ----- - O ° Start Dir 1.50/100' 2908.50' MD, 2882.50' TVD • 3000 -- DDI = 5.45 O _ 9 5/8" End Dir 3028.20' MD, 3000.00' TVD 'C 3600 Tuffaceous Shales - Z 0° j Start Dir 1.50/100' 3048.20' MD, 3019.60' TVD j 36' H 4200 _ IN c� Start Dir 3.50/100 4228.50' MD, 4119.70' TVD III - Bookian 2B - 4800 - Top Torok Sand ... End Dir 4826.20' MD, 4575.30' TVD 5400 - Base Torok Sand - " _ Top HRZ Total Depth : 7363.60'MD. 6210.90'TVD 6000 - I 7e Base HRZ Kalubik Marker - 6800 [KupD v8 T1I ODSK -38i KupD Wp08 - Top Kuparuk C ' 7200 - i i i i 1 1 1 1 1 1 1 1 1 1 I rl ') - 1111 lT( I 1I 1111I1111 II11 T '1'7-1 -1 i 1 I 111 __, 111 -1800 -1200 -600 0 600 1200 1800 2400 3000 3600 4200 4800 5400 6000 6600 7200 7800 8400 9000 9600 10200 10800 11400 12000 12600 Vertical Section at 16.69bearing (1500 ft/in) . WELL DETAILS: ODSK -38i REFERENCE INFORMATION 2. r / +�7l -_- - - - - - .. - Co- ordinate (N/E) Reference: Wel ODSK-38i - Slot ODS- 38, True North HMi.LI�Urt+aa "l `! 4./iY Ground Level. 03.5 Vertical (TVD) Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) +N / -S +E/ -W Northing Easting Latittude Longitude Slot • Measured Depth Reference: 44' + 13.5' 6 57.5ft (Nabors 19AC) ' S perm' , Dwilline Shervloo sn 1 1 0.0 0 0 6031047.99 469864 14 70° 29' 45.223 N 150 14' 47.110 W 0DS-38 Calculation Method: Minimum Curvature rI.QN4Ft SURVEY PROGRAM WELLBORE TARGET DETAILS (MAP CO - ORDINATES) Date 2008- 09-24T000000 Validated Yes Version Name TVD +N / -S +E / -W Northing Easting Shape Depth From Depth To Survey /Plan Tool • KupD v8 T1 6017.5 2410.3 738.2 6033455.00 470612.00 Cirde (Radius: 100.0) 1400.0 7383.6 ODSK -38i KupD wp08 MWD +SA-SCA +IIFR +MS Project: Oooguruk Developement Site: Oooguruk Drill Site • Well: ODSK -38i SECTION DETAILS COMPANY DETAILS: Well Planning - Pioneer - Oooguruk Wellbore: ODSK -38i KupD Sec MD Inc Azi TVD +W -S +E / -W DLeg TFace VSec Target C alculation Method: Minimum Curvature ,� Plan: ODSK -38i KupD wp08 1 44.0 0.00 0.00 44.0 0.0 0.0 0.00 0.00 0.0 Error System: ISCWSA 2 600.0 0.00 0.00 600.0 0.0 0.0 0.00 0.00 0.0 Scan Method. Tray. Cylinder North 3 1100.0 5.00 160.00 1099.4 -20.5 7.5 1.00 160.00 -17.5 Error Surface: Elliptical Conic 4 1433.3 10.00 160.00 1429.7 -61.4 22.3 1.50 0.00 -52.4 Warring Method: Rules Based • • 5 1657.0 10.00 160.00 1650.0 -97.9 35.6 0.00 0.00 -83.5 I - - - - - - - -- - - -- - -- - 6 1758.5 10.00 160.00 1750.0 -114.4 41.6 0.00 0.00 -97.6 7 2608.5 10.00 13.38 2587.1 -108.0 152.0 3.00 -90.00 -59.8 CASING DETAILS • 3600 8 2908.5 10.00 13.38 2882.5 -57.4 164.0 0.00 0.00 -7.8 9 3028.2 11.80 13.38 3000.0 -35.3 169.2 1.50 0.00 14.8 TVD MD Name Size 10 3048.2 11.80 13.38 3019.6 -31.4 170.2 0.00 0.00 18.8 3000.0 3028.2 9 5/8" 9.625 11 3328.5 16.00 13.38 3291.6 34.1 185.8 1.50 0.00 86.0 6210.9 7363.6 7" 7.000 3200 - 12 4228.5 29.50 13.38 4119.7 371.9 266.1 1.50 0.00 432.7 13 4810.5 49.87 13.02 4565.2 731.9 350.2 3.50 -0.79 801.6 14 7063.6 49.87 13.02 6017.5 2410.3 738.2 0.00 0.00 2520.7 KupD v8 T1 15 7363.6 49.87 13.02 6210.9 2633.7 789.8 0.00 0.00 2749.6 2800 ODSK -38i KupD wpO8 2400 - Total Depth : 7363.60 MD, 6210.90WD DDI = 5.45 IDD Poly 95 .... "1D -. KupD v8TIL 2000 -- C a 55po c, 1600-- o r 1200--- 5 000 0 End Dir 4826 20' MD, 4575 30' TVD ,L 800 - -- _ - - - 0 4500 • Start Dir 3.50/100' 4228.50' MD, 4119.70' TVD 400 -- - - - - Start Dir 1.00/100' 600.00' MD, 600.00' TVD 4000 Start Dir 1.50/100' 3048.20' MD, 3019.60' TVD 9 5/8" - " 0 -- -. - - - " - - End Dir 3028.20' MD, 3000.0(2 TVD Start Dir 1.50 /100' 1100.00' MD, 1099 40' TVD , - - 400 - - -- - ' , T Start Dir 1.50/100' 2908.50' MD, 2882.50' TVD End Dir 1433.30' MD, 1429.70' TVD End Dir 2608.50' MD, 2587.10' TVD -800 -- - Start Dir 350/100' 1758.50' MD, 1750.00' TVD - 1200 -- I i! I 1 1 1 1 I I I 1 , I I 1 1 I I 1 I 1 1 1 1 I 1 1 1 1 T 1 I I' I 1 I 1 I I J r I l I I l l l i T, I I I I 1 I 1 1 1 1 r 1 1 1 I 1 1 I I I 1 1 1 I I I I 1' i I I" I i, I! I i 1 1 1 1 ', • i - 4400 - 4000 - 3600 - 3200 -2800 -2400 -2000 -1600 -1200 -800 -400 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 4400 4800 5200 West(-)/East(+) (1000 ft/in) • 0 Sperry Drilling Services HALLIBURTON Standard Proposal Report Database: ..EDM_Alaska Local Co Reference: Well ODSK -38i - Slot ODS -38 Company: Well Planning - Pioneer - Oooguruk TVD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Project: Oooguruk Developement MD Reference: 44' + 13.5' © 57.5ft (Nabors 19AC) Site: Oooguruk Drill Site North Reference: True Well; ODSK - 38i Survey Calculation Method: Minimum Curvature Welbore: ODSK -38i KupD Design: ODSK -38i KupD wp08 Project Oooguruk Developement Map System: US State Plane 1927 (Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927 (NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Using geodetic scale factor Site Oooguruk Drill Site Site Position: Northing: 6,031,151.32ft Latitude: 70° 29' 46.242 N From: Map Easting: 469,920.45ft Longi 150° 14' 45.465 W Position Uncertainty: 0.0 ft Slot Radius: in Gri..A. IELli.:Lb 3.: - 0.23 ? Well ODSK - 38i - Slot ODS - 38 Well Position +N / -S 0.0 ft Northing: 6,031 6,031,Q4Mlft Latitudiii 70° 29' 45.223 N +E/ -W 0.0 ft Easting: 4C. ft Longitude: 150° 14' 47.110 W Position Uncertainty 0.0 ft Wellhead Elevation: ft a r 13.5 ft Wellbore ODSK - 38i KupD Magnetics Model Name Sample Date DiiiThillian Dip Angle Field Strength IGRF200510 3/6/211, 80.81 57,643 Design ODSK -38i KupD wp08 ■ ! Audit Notes: Version: ease: i $14 Tie On Depth: 44.0 Vertical Section: Depth Fromm +EI-W Direction ? (ft) (ft) (bearing) ® 0.0 0.0 16.69 Plan Sections Dogleg I Measured Vertical Build Turn j Depth Inclination Azimuttl j epth 'Em +N/-S +E/-W Rate Rate Rate Tool Face (ft) ( ?) ( IN it (ft) (ft) ( ?/1OOft) (?MOOft) ( ?MOOft) ( ?) 44.0 0.00 0.00 1110 -13.5 0.0 0.0 0.00 0.00 0.00 0.00 600.0 0.00 0.00 606.0 542 0.0 0.0 0.00 0.00 0.00 0.00 1,100.0 5.00 160.00 1,099.4 1,041.9 -20.5 7.5 1.00 1.00 0.00 160.00 1,433.3 10.00 160.00 1,429.7 1,372.2 -61.4 22.3 1.50 1.50 0.00 0.00 1,657.0 10.00 160.00 1,650.0 1,592.5 -97.9 35.6 0.00 0.00 0.00 0.00 1,758.5 10.00 160.00 1,750.0 1,692.5 -114.4 41.6 0.00 0.00 0.00 0.00 2,608.5 10.00 13.38 2,587.1 2,529.6 -108.0 152.0 3.00 0.00 -17.25 -90.00 2,908.5 10.00 13.38 2,882.5 2,825.0 -57.4 164.0 0.00 0.00 0.00 0.00 ! 3,028.2 11.80 13.38 3,000.0 2,942.5 -35.3 169.2 1.50 1.50 0.00 0.00 3,048.2 11.80 13.38 3,019.6 2,962.1 -31.4 170.2 0.00 0.00 0.00 0.00 3,328.5 16.00 13.38 3,291.6 3,234.1 34.1 185.8 1.50 1.50 0.00 0.00 ! 4,228.5 29.50 13.38 4,119.7 4,062.2 371.9 266.1 1.50 1.50 0.00 0.00 4,810.5 49.87 13.02 4,565.2 4,507.7 731.9 350.2 3.50 3.50 -0.06 -0.79 7,063.6 49.87 13.02 6,017.5 5,960.0 2,410.3 738.2 0.00 0.00 0.00 0.00 ! 7,363.6 49.87 13.02 6,210.9 6,153.4 2,633.7 789.8 0.00 0.00 0.00 0.00 925/2008 8:45 :20AM Page 2 COMPASS 2003.16 Build 428 • • Sperry Drilling Services HALLIBURTN Standard Proposal Report Database: ..EDM_Alaska Local Co - ordinate Reference: Well ODSK -38i - Slot ODS -38 Company: Well Planning - Pioneer - Oooguruk TVD Reference: 44' + 13.5 @ 57.5ft (Nabors 19AC) Project: Oooguruk Developement MD Reference: 44' + 13.5 © 57.5ft (Nabors 19AC) Site: Oooguruk Drill Site North Reference: True Weil: ODSK - 38i Survey Calculation Method: Minimum Curvature Wellbore: ODSK -38i KupD Design ODSK -38i KupD wp08 - --- - - -- - -- Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N1-S +E/ W Northing Easting DLS Vert Section (ft) ( ?) (bearing) (ft) ft (ft) (ft) (ft) (ft) -13.50 44.0 0.00 0.00 44.0 -13.5 0.0 0.0 6,031,047.99 469,864.14 0.00 0.00 100.0 0.00 0.00 100.0 42.5 0.0 0.0 6,031,047.99 . 469,864.14 0.00 0.00 200.0 0.00 0.00 200.0 142.5 0.0 0.0 6,031,047.9469,864.14 0.00 0.00 300.0 0.00 0.00 300.0 242.5 0.0 0.0 6,031,041217 664,864.14 0.00 0.00 400.0 0.00 0.00 400.0 342.5 0.0 0.0 6,031 48.84.14 0.00 0.00 500.0 0.00 0.00 500.0 442.5 0.0 0.0 6,Q 49 T1,4 0.00 0.00 600.0 0.00 0.00 600.0 542.5 0.0 0.0 9,864.14L 0.00 0.00 Start Dir 1.00/100' 600.00' MD, 600.00' TVD 700.0 1.00 160.00 700.0 642.5 -0.8 04E7 6,031,047.17 443 1.00 -0.70 800.0 2.00 160.00 800.0 742.5 -3.3 6,04.71 4fi9,865.32 1.00 -2.80 900.0 3.00 160.00 899.9 842.4 -7.4 ® §437040.60 09,866.79 1.00 -6.30 1,000.0 4.00 160.00 999.7 942.2 -13.1 31,034.86 / 469,868.86 1.00 -11.19 1,100.0 5.00 160.00 1,099.4 1,041.9 1,027.4717 469,871.51 1.00 -17.48 Start Dir 1.50/100' 1100.00' MD, 1099.40' TVD 1,200.0 6.50 160.00 1,198.9 1,141.4 503t78.05 469,874.90 1.50 -25.52 1,300.0 8.00 160.00 1,298.1 1,240. ,006.17 469,879.17 1.50 -35.63 1,400.0 9.50 160.00 1,396.9 1,3 - n30,991.86 469,884.31 1.50 -47.83 1,433.3 10.00 160.00 1,429.7 W 6,030,986.55 469,886.22 1.50 -52.36 End Dir 1433.30' MD, 1429.70' TVD 1,500.0 10.00 160.00 1,495.4326.3 6,030,975.65 469,890.14 0.00 -61.64 1,600.0 10.00 160.00 1, .?K [ 4:1t41■7 32.2 6,030,959.31 469,896.01 0.00 -75.57 1,657.0 10.00 160.00 W 35.6 6,030,950.00 469,899.35 0.00 - 83.50 1,664.6 10.00 160.00M 160.00.e:W 36.1 6,030,948.76 469,899.80 0.00 -84.56 Base of Permanfrost 1,700.0 10.00 .•ii1f +:ril[:1YK.W1111111M111101111V -104.9 38.2 6,030,942.97 469,901.88 0.00 -89.49 1,758.5 10.00 -114.4 41.6 6,030,933.42 469,905.32 0.00 -97.63 Start Dir 3.001100' 1758.5O91750.00' TV[1 1,800.0 10.00 152.8 8�47�65 jJ2' 33.3 -121.0 44.5 6,030,926.80 469,908.17 2.99 - 103.13 1,900.0 10.00 135.60 91,831.8 -135.1 54.6 6,030,912.73 469,918.23 2.98 - 113.67 2,000.0 10.00 118.35 13111n7 1,930.3 -145.5 68.5 6,030,902.27 469,932.00 2.98 - 119.66 2,100.0 10.00 101.10 2,086.3 2,028.8 -151.3 84.7 6,030,896.37 469,948.26 2.98 - 120.58 2,200.0 10.00 83.85 2,184.8 2,127.3 -152.0 102.0 6,030,895.55 469,965.54 2.98 - 116.33 2,300.0 10.00 66.60 2,283.2 2,225.7 -147.6 118.8 6,030,899.90 469,982.28 2.98 - 107.30 2,301.2 10.14 66.28 2,284.4 2,226.9 -147.5 118.9 6,030,899.98 469,982.47 12.91 - 107.16 Top West Sak 2,400.0 10.00 49.35 2,381.7 2,324.2 -138.5 133.4 6,030,909.01 469,996.98 2.99 -94.29 2,500.0 10.00 32.10 2,480.2 2,422.7 -125.3 144.7 6,030,922.07 470,008.32 2.98 -78.49 2,600.0 9.96 14.83 2,578.7 2,521.2 -109.6 151.5 6,030,937.76 470,015.21 2.98 -61.47 2,608.5 10.00 13.38 2,587.1 2,529.6 -108.2 151.9 6,030,939.19 470,015.58 2.98 -60.00 End Dir 2608.50' MD, 2587.10' TVD 2,700.0 10.00 13.38 2,677.2 2,619.7 -92.6 155.6 6,030,954.78 470,019.38 0.00 -43.98 2,800.0 10.00 13.38 2,775.6 2,718.1 -75.7 159.6 6,030,971.66 470,023.46 0.00 -26.64 2,900.0 10.00 13.38 2,874.1 2,816.6 -58.8 163.7 6,030,988.53 470,027.55 0.00 -9.31 2,908.5 10.00 13.38 2,882.5 2,825.0 -57.4 164.0 6,030,989.97 470,027.90 0.00 -7.83 Start Dir 1.50/100' 2908.50' MD, 2882.50' TVD 9/252008 8 :45 :20AM Page 3 COMPASS 2003.16 Build 42B • • �i Sperry Drilling Services H,ALLIBURT N Standard Proposal Report Database: ..EDM_Alaska Local Co- ordinate Reference: Well ODSK -38i - Slot ODS -38 Company: Well Planning - Pioneer - Oooguruk TVD Reference: 44' + 13.5' (di 57.5ft (Nabors 19AC) Project: Oooguruk Developement MD Reference: 44' + 13.5 © 57.5ft (Nabors 19AC) Site; Oooguruk Drill Site North Reference: True Well: ODSK - 38i Survey Calculation Method: Minimum Curvature Welibore: ODSK -38i KupD Design: ODSK -38i KupD wp08 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-6 +E! -W Northing Easting DLS Vert Section (ft) ( ?) (bearing) (ft) ft (ft) (ft) ("R) (R) 2,829.80 2,913.4 10.07 13.38 2,887.3 2,829.8 - 56.5 164.2 6,030,990.79 470,028.10 1.49 - 6.99 Hue Shales 3,000.0 11.37 13.38 2,972.4 2,914.9 -40.9 167.9 6,031,006.4 470,031.89 1.50 9.10 3,000.8 11.38 13.38 2,973.2 2,915.7 -40.7 168.0 6,031,000117 470,031.93 1.50 9.26 Tuffaceous Shales 3,028.2 11.79 13.38 3,000.0 2,942.5 - 35.4 169.2 6,012=, T 4707(53 1.50 14.75 End Dir 3028.20' MD, 3000.00' TVD - 95/8" 3,048.2 11.80 13.38 3,019.6 2,962.1 - 31.4 170.2 G'ji?031,015.9 0.00 18.84 Start Dir 1.50/100' 3048.20' MD, 3019.60' TVD 3,100.0 12.57 13.38 3,070.2 3,012.7 -20.7 13n1=6,030A6.5'1 470.0'36.75 1.50 29.75 3,200.0 14.07 13.38 3,167.6 3,110.1 1.7 / jfgai=6, j 48.95 470,042.17 1.50 52.75 3,300.0 15.57 13.38 3,264.2 3,206.7 26.6 / 1 /470,048.19 1.50 78.29 3,328.5 16.00 13.38 3,291.6 3,234.1 3 31,081.34/ 470,050.02 1.50 86.03 3,400.0 17.07 13.38 3,360.2 3,302.7 EMMEP2 470,054.80 1.50 106.35 3,500.0 18.57 13.38 3,455.4 3,397.9 5,0 0.86 470,062.00 1.50 136.90 3,600.0 20.07 13.38 3,549.8 3,492.3 , 163.02 470,069.79 1.50 169.93 3,700.0 21.57 13.38 3,643.2 3,5 ..MINIM II Ke, X3 1,197.56 470,078.15 1.50 205.42 3,800.0 23.07 13.38 3,735.7 6,031,234.47 470,087.08 1.50 243.33 3,900.0 24.57 13.38 3,827.2 A4PAIIMEiI ∎_E'A3∎' 6,031,273.72 470,096.58 1.50 283.66 4,000.0 26.07 13.38 3,917 .4 6,031,315.29 470,106.65 1.50 326.35 4,100.0 27.57 13.38 4, I.AAMINNIIIINIVIIIIIIIIIIWENP 51.9 6,031,359.14 470,117.26 1.50 371.40 4,200.0 29.07 13.38 262.9 6,031,405.24 470,128.42 1.50 418.76 4,228.5 29.50 13.38Z3ZW 266.1 6,031,418.79 470,131.70 1.50 432.68 Start Dir 3.50/100' 4228.50M74119.7O 4,300.0 32.00 407.5 274.5 6,031,454.32 470,140.28 3.50 469.17 4,400.0 35.50° 461.6 287.3 6,031,508.33 470,153.25 3.50 524.62 4,444.4 37.06 13ZUM=E 487.1 293.3 6,031,533.90 470,159.36 3.50 550.86 Bookian 2B 4,500.0 39.00 13.17 ,286.4 520.5 301.1 6,031,567.19 470,167.30 3.50 585.03 4,600.0 42.50 13.11 4511I37 4,362.1 584.0 315.9 6,031,630.68 470,182.40 3.50 650.17 4,700.0 46.00 13.06 4,491 4,433.7 652.0 331.7 6,031,698.57 470,198.47 3.50 719.80 4,800.0 49.50 13.02 4,558.5 4,501.0 724.1 348.4 6,031,770.60 470,215.46 3.50 793.67 4,810.5 49.87 13.02 4,565.3 4,507.8 731.9 350.2 6,031,778.39 470,217.29 3.49 801.66 End Dir 4826.20' MD, 4575.30' TVD 4,900.0 49.87 13.02 4,622.9 4,565.4 798.6 365.6 6,031,844.99 470,232.97 0.00 869.94 5,000.0 49.87 13.02 4,687.4 4,629.9 873.1 382.9 6,031,919.40 470,250.49 0.00 946.24 5,100.0 49.87 13.02 4,751.9 4,694.4 947.6 400.1 6,031,993.82 470,268.01 0.00 1,022.54 5,200.0 49.87 13.02 4,816.3 4,758.8 1,022.0 417.3 6,032,068.23 470,285.53 0.00 1,098.84 5,300.0 49.87 13.02 4,880.8 4,823.3 1,096.5 434.5 6,032,142.64 470,303.05 0.00 1,175.13 5,400.0 49.87 13.02 4,945.2 4,887.7 1,171.0 451.7 6,032,217.06 470,320.56 0.00 1,251.43 5,500.0 49.87 13.02 5,009.7 4,952.2 1,245.5 468.9 6,032,291.47 470,338.08 0.00 1,327.73 5,527.8 49.87 13.02 5,027.6 4,970.1 1,266.2 473.7 6,032,312.17 470,342.95 0.00 1,348.95 Top Torok Sand 5,600.0 49.87 13.02 5,074.1 5,016.6 1,320.0 486.2 6,032,365.89 470,355.60 0.00 1,404.03 5,700.0 49.87 13.02 5,138.6 5,081.1 1,394.5 503.4 6,032,440.30 470,373.12 0.00 1,480.33 925/2008 8 :45:20AM Page 4 COMPASS 2003.16 Build 428 1 • Sperry Drilling Services HALLIBURTON Standard Proposal Report Database: ..EDM_Alaska Local Co- ordinate Reference: Well ODSK -38i - Slot ODS -38 Company: Well Planning - Pioneer - Oooguruk TVD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Project: Oooguruk Developement MD Reference: 44' + 13.5' © 57.5ft (Nabors 19AC) Site: Oooguruk Drill Site North Reference: True Well: ODSK -38i Survey Calculation Method: Minimum Curvature Wellbore: ODSK -38i KupD Design: ODSK -38i KupD wp08 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +NI-S +E/ -W Northing Easting DLS Vert Section (ft) ( ?) (bearing) (ft) ft (ft) (ft) (ft) (ft) 6,145.54 5,800.0 49.87 13.02 5,203.0 5,145.5 1,469.0 520.6 6,032,514.71 470,390.64 0.00 1,556.63 5,900.0 49.87 13.02 5,267.5 5,210.0 1,543.5 537.8 6,032,589.13 m 470,408.16 0.00 1,632.92 1 5,957.7 49.87 13.02 5,304.7 5,247.2 1,586.5 547.8 6,032,632.0470,418.27 0.00 1,676.96 Base Torok Sand 6,000.0 49.87 13.02 5,332.0 5,274.5 1,618.0 555.0 6,032AEML 4707425.67 0.00 1,709.22 6,100.0 49.87 13.02 5,396.4 5,338.9 1,692.5 572.3 6, 470;44319 0.00 1,785.52 6,200.0 49.87 13.02 5,460.9 5,403.4 1,767.0 589.5 0,460.7' 0.00 1,861.82 6,300.0 49.87 13.02 5,525.3 5,467.8 1,841.5 606.7 L032,886.7 0.00 1,938.12 6,400.0 49.87 13.02 5,589.8 5,532.3 1,915.9 62,032,961.1975 0.00 2,014.41 6,500.0 49.87 13.02 5,654.2 5,596.7 1,990.4 gn1=6,0 5.61 1470,813.27 0.00 2,090.71 6,600.0 49.87 13.02 5,718.7 5,661.2 2, 064.9 . f3 110.02x - 4'70,530.79 0.00 2,167.01 6,676.0 49.87 13.02 5,767.7 5,710.2 2,121.6 33,166.61 / 470,544.11 0.00 2,225.03 Top HRZ 6,700.0 49.87 13.02 5,783.1 5,725.6 2,1 X755 EMIEWX4 470,548.30 0.00 2,243.31 6,800.0 49.87 13.02 5,847.6 5,790.1 6.0 88.85 470,565.82 0.00 2,319.61 6,874.8 49.87 13.02 5,895.8 5,838. ,314.50 470,578.92 0.00 2,376.67 Base HRZ 6,900.0 49.87 13.02 5,912.1 W7 6,033,333.26 470,583.34 0.00 2,395.91 7,000.0 49.87 13.02 5,976.5 AVAINEIMIMIKWAMLINIMAUK 6,033,407.68 470,600.86 0.00 2,472.20 7,001.1 49.87 13.02 5,977 .4 6,033,408.47 470,601.05 0.00 2,473.02 Kalubik Marker 7,060.3 49.87 13.02 _ DIME \A1TXEMMILirYEf'" 737.6 6,033,452.58 470,611.43 0.00 2,518.24 Top Kuparuk C 7,063.6 49.87 13 .3 738.2 6,033,455.00 470,612.00 0.00 2,520.73 KupD v8 T1 7,100.0 49.87 2,437.4 744.4 6,033,482.09 470,618.38 0.00 2,548.50 7,200.0 49.87 -ill., !•1UarrP 2,511.9 761.7 6,033,556.50 470,635.90 0.00 2,624.80 7,300.0 49.87 13. , 2.4 2,586.4 778.9 6,033,630.92 470,653.41 0.00 2,701.10 7,363.6 49.87 13.02 x,153.4 2,633.7 789.8 6,033,678.24 470,664.56 0.00 2,749.62 1 Targets Target Name - hit/miss target Dip Angle Dip Dir. TVD +Nl-S +E/-W Northing Easting - Shape ( ?). (bearing (ft) (ft) (ft) (1t) (ft) KupD v8 T1 0.00 0.00 6,017.5 2,410.3 738.2 6,033,455.00 470,612.00 - plan hits target - Circle (radius 100.0) � Casing Points Measured Vertical Casing Hole 1 Depth Depth Diameter Diameter (ft) (ft) Name (In) (in) 3,028.2 3,000.0 9 5/8" 9.625 12.250 7,363.6 6,210.9 7" 7.000 8.750 9/252008 8:45:20AM Page 5 COMPASS 2003.16 Build 42B 0 Sperry Drilling Services HAL.LIBURTON Standard Proposal Report Database: ..EDM_Alaska Local Co- ordlnato Reference: Well ODSK - 38i - Slot ODS - 38 Company: Well Planning - Pioneer - Oooguruk TVD Reference: 44' + 13.5 @ 57.5ft (Nabors 19AC) Project: Oooguruk Developement MD Reference: 44' + 13.5 @ 57.5ft (Nabors 19AC) Site: Oooguruk Drill Site North Reference: True Weil: ODSK - 38i Survey Calculation Method: Minimum Curvature Wellbore: ODSK -38i KupD Design: ODSK -38i KupD wp08 Formations Measured Vertical Vertical Dip Depth Depth Depth SS Dip Direction (ft) (ft) ft Name Lithology ( ?) (bearing) 6,874.8 5,895.8 Base HRZ 0.00 5,957.7 5,304.7 Base Torok Sand 0.00 2,913.4 2,887.3 Hue Shales Ilk. 0.00 1,664.6 1,657.5 Base of Permanfrost AVM 0.00 7,060.3 6,015.4 Top Kuparuk C 0.00 6,676.0 5,767.7 Top HRZ 0.00 3,000.8 2,973.2 Tuffaceous Shales /ler \ 0.00 7,001.1 5,977.2 Kalubik Marker IP ,> 0.00 4,444.4 4,300.1 Bookian 2B t ■ / 0.00 5,527.8 5,027.6 Top Torok Sand / V' 0.00 2,301.2 2,284.4 Top West Sak it / / 0.00 Plan Annotations Measured Vertical Local Coordinates lir Depth Depth +N /S +Ei (ft) (ft) (ft) .n ; a 600.0 600.0 0.0 600.00' MD, 600.00' TVD 1,100.0 1,099.4 -20.5 it 0' 1100.00' MD, 1099.40' TVD 1,433.3 1,429.7 -61.4 it .30' MD, 1429.70' TVD 1,758.5 1,750.0 - 114,.' -1 3lil i"'1'i /100' 1758.50' MD, 1750.00' TVD 2,608.5 2,587.1 -1 P.xir"` AkklR• »∎: t `Ir' 608.50' MD, 2587.10' TVD 2,908.5 2,882.5 it 1.50/100' 2908.50' MD, 2882.50' TVD 3,028.2 3,000.0 Dir 3028.20' MD, 3000.00' TVD 3,048.2 3,019.6 - 1. tart Dir 1.50/100' 3048.20' MD, 3019.60' TVD 4,228.5 4,119.7 Start Dir 3.50/100' 4228.50' MD, 4119.70' TVD I 4,810.5 4,565.3 End Dir 4826.20' MD, 4575.30' TVD 7,363.6 6,210.8 Total Depth : 7363.60'MD, 6210.90'TVD I 9/25/2008 8 :45 :20AM Page 6 COMPASS 2003.16 Build 42B • TRANSMITTAL LETTER CHECKLIST g WELL NAME (2 ( ' Z c 2 ‹- 3 PTD# 2- / 4 Development, Service Exploratory Strati ra hic Test P � P r3' g P Non - Conventional Well FIELD: Cc.„..1c■POOL: '. Circle Appropriate Letter / 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 welibore 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 Togs 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. 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 (Comaanv 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: 1/112008 IP WELL PERMIT CHECKLIST Field & Pool 000GURUK, KUPARUK OIL - 576100 Well Name: 000GURUK KUP ODSK-38 Program SER Well bore seg El PTD#: 2081460 Company CO_NO_COPHILLIPS ALASKA INC Initial Class/Type SER / PEND Geo Area 973 Unit 11550 On/Off Shore On Annular Disposal Ej Administration 1 _Permit_ fee attached NA 2 _Lease _nu m ber _appropriate Yes Entire well will be in ADL 355036 3 Unique well name and number Yes 4 _VVelllocatecl in_a_define_d pool Yes 00001JRUK, KUPARUK OIL POOL - 57_6100, governed by Conservation Order No. 596 and AIO No. 33 5 _Well located proper distance fro_m drilling unit boundary Yes 00 596 specifies no restrictions as to well spacing except no pay open within 500' of external property line 6 Well located proper_distance from other wells Yes Close approach to ODSK-36 when both are completed will be —1200. 7 _Sofficient_aoreage_ayailable in drilling u nit Yes 8 _Ifdeviated, is wallbore plat_inciuded Yes Received directional survey on Sept 30, 2008. 9 Operator only affected party Yes 10 _Operator has_appropriate_ bond in_force Yes 11 Permit can be issued without conservation order Yes Appr Date 12 Permit can be issued without administtative_a_pproval Yes SFD 9/30/2008 13 Can permit be approved before 15-day wait Yes 14 _Well located within area and_strata authorized by Injection Order # (put_ IO# in comments) (For Yes A10 33 15 A1l_wells_within 1/4_ mile_are_a of review identified (For service well only) Yes ODSK-36 16 Pre-produ_ced injector; cluration_of pre-_production less_ than 3 months_ (Forservice well only) Yes 17 _N_onconven, ga_s_conforms _to AS31,05,030(j_.1.A),(j,2.A-D) NA Engineering 18 Conductor string_pcovided Yes 19 _S_urface_casing_p_rotects all_knOWn USDWs NA Surface location is !offshore. No _known USDWs. 20 _C_MT_v_ol adequate_ to circulate_o_n_conductor & surf csg Yes 21 _C_MT_v_oi adequate to tie-injong string to_surf csg_ Yes 22 _C_Iir_will coverall know_n_productive horizons Yes 23 Casing designs adequate for C, 1, B & permafrost Yes 24 _Adequate tankage_ Or reserve pit Yes Rig equipped with steel pits. No reserve pit planned. All waste to approved disposal well. 25 _Ifs_ re-drill, has_a 10403 for abandonment been approved NA 26 _Adequate_w_ellbore separatio_n_pro_posed Yes Proximity analysis performed. Traveling cylinder path calculated. Byros possible in surface hole. 27 ifdiverterrequired does it _meet regulations NA PXD filed surface hole information & seeks a diverterwaiver. No issues identified drilling prior wells. Appr Date 28 _Drilling fluid program schematic_& eq_uip list adequate Yes Maximum expected formation pressure 9.8 EMW. Managed press_ure drilling planned with —9.2_ ppg _and applied _ TEM 10/7/2008 29 _BOPEs, dothey meet regulation Yes pressureto give ECD between 10.5 and 12.5 EMW. Underbalanoc drilling not proposed. III /41---- 30 B_OPE_press rating appropriate; _test to_(put psig in comments) 31 _C_hoke_manifold complies w/API_RP-53 (May 84) Yes 32 Work will occur without operation shutdown Yes N_o MASP calculated at 2482 psi. 450_0 psi BOP test_planned. Surface section of 3 wells will be batch drilled. Time off well should not be long. 33 is presence of 1-128 gas probable No H2S has not b_een reported in offset wells. Rig equipped with sensors a_nd alarms. 34 _tvlechanical_condition of wells within AOR verified (For service well only) Yes No wells in AQR. Geology 35 _Permit can be issued w/o hydrogen_ suffide measures Yes None expected, but H2S monitors will be operational. 36 Data_presented on potential overpressurezones Yes Expected max. pressure is 9.8 ppg EMW; will be drilled using 9_.2+_ppg mud and managed pressure clrilling_to Appr Date 37 Seistnic_analysis of shallow gas zones NA keep equivalent circulating density between 10.5 and 125 ppg as required. SFD 9/30/2008 38 _Seabed condition survey (if off-shore) NA 39 _C_ontactname/phone for weekly_progress reports [exploratory only] NA Geologic . Public Date Date Date Commissioner: Commissioner: C i O ity iir
