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Home My WebLink About205-0231. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: Set Patch Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 10,365 feet 8,675 feet true vertical 8,104 feet N/A feet Effective Depth measured 8,675 feet 5,359 feet true vertical 6,434 feet 3,362 feet Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth)4-1/2" 12.6# / L-80 5,359' MD 3,362' TVD Packers and SSSV (type, measured and true vertical depth)Baker ZXP; N/A 5,359' MD 3,362' TVD N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Ryan Rupert Authorized Title:Operations Manager Contact Email: Contact Phone:777-8503 ryan.rupert@hilcorp.com Senior Engineer:Senior Res. Engineer: 8,430psi Burst 3,060psi87' 1,478' 7,240psi 5,750psi Collapse 1,500psi 3,090psi 5,410psi 7,500psi Casing Structural 20" 9-5/8" 7" Length 66' 1,744' 5,554' Conductor Surface Intermediate Production Authorized Signature with date: Authorized Name: 0 Casing Pressure Liner 4,985' 30 8,102' 0 Representative Daily Average Production or Injection Data 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 321-379 176 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 0 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 205-023 50-133-20549-00-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 1780 Ninilchik State #1 N/A ADL 384305 / ADL 389180 5,554' Plugs Junk measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Ninilchik / Beluga-Tyonek Gas PoolN/A measured TVD Tubing PressureOil-Bbl measured true vertical Packer 4-1/2" 3,496' WINJ WAG 72 Water-Bbl MD 87' 1,744' 10,344' 0 t Fra O 6. A G L PG , R Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Meredith Guhl at 8:51 am, Sep 03, 2021 ii Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.09.02 16:11:32 -08'00' Taylor Wellman (2143) SFD 9/7/2021 DSR-9/3/21 BJM 10/26/21 RBDMS HEW 9/3/2021 Rig Start Date End Date E-Line 8/16/21 8/16/21 08/16/2021 - Monday BEGIN RIG UP, STACK PCE, PICK UP WIRELINE, MAKE UP TOOLSTRING. STAB ON WELL, PREP FOR PT, STANDBY FOR TRIPLEX. TRIPLEX ARRIVES. PRESSURE TEST 250 PSI LOW, 2,500 PSI HIGH. BLEED DOWN LUBRICATOR. STAB OFF WELL, CHECK FIRE, ARM GUN. STAB ON WELL. RIH WITH CH/WB/GPST/13' LOADED HSC (OAL 29', 200LB, 2" OD, 1.375" FN). CORRELATE TO OPEN HOLE LOG PROVIDED AND STANDBY FOR APPROVAL. GET INTO POSITION, PERFORATE 6,790' - 6,803' WITH 2" 6SPF 60PHASE HSC W/GEO RAZOR CHARGES, CCL TO TOP SHOT = 8.3', CCL STOP AT 6,781.7'. GOOD INDICATION OF FIRING. MONITOR FTP FOR 15 MINUTES, STEADY AT 180 PSI. RIH AND TAG AT 8,022', LOG UP TO 5200' FOR JEWLERY LOG. FINISH JEWELRY LOG, POOH. ON SURFACE, BLEED DOWN LUBRICATOR. STAB OFF WELL, CONFIRM SHOTS FIRED, CHECK FIRE, ARM SECOND GUN. STAB ON WELL. RIH WITH CH/WB/GPST/10' LOADED HSC (OAL 25', 200LB, 2" OD, 1.375" FN). CORRELATE TO OPEN HOLE LOG PROVIDED AND STANDBY FOR APPROVAL. GET INTO POSITION, PERFORATE 6,560' - 6,570' WITH 2" 6SPF 60PHASE HSC W/GEO RAZOR CHARGES, CCL TO TOP SHOT = 7.5', CCL STOP AT 6,552.5'. GOOD INDICATION OF FIRING. MONITOR FTP FOR 15 MINUTES, STEADY AT 180 PSI. ON SURFACE, BLEED DOWN LUBRICATOR. STAB OFF WELL, CONFIRM SHOTS FIRED, CHECK FIRE, ARM THIRD GUN. STAB ON WELL. RIH WITH CH/WB/GPST/20' LOADED HSC (OAL 33', 250LB, 2" OD, 1.375" FN). CORRELATE TO OPEN HOLE LOG PROVIDED AND STANDBY FOR APPROVAL. GET INTO POSITION, PERFORATE 6,334' - 6,254' WITH 2" 6SPF 60PHASE HSC W/GEO RAZOR CHARGES, CCL TO TOP SHOT = 7.5', CCL STOP AT 6,326.5'. GOOD INDICATION OF FIRING. MONITOR FTP FOR 15 MINUTES, STEADY AT 180 PSI. ON SURFACE, BLEED DOWN LUBRICATOR. STAB OFF WELL, CONFIRM SHOTS FIRED, BEGIN RIG DOWN. Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Ninilchik State 01 50-133-20549-00-00 205-023 PERFORATE 6,560' - 6,570' PERFORATE 6,790' - 6,803' PERFORATE 6,334' - 6,254' Size Type Wt Grade Conn. ID Top Btm 20" Conductor 113 K-55 PE Surf 87' 9-5/8" Surf Csg 40 L-80 BTC 8.835" Surf 1744' 7" Prod Csg 26 L-80 BTC 6.276" Surf 5554' 4-1/2" Liner 12.6 L-80 Hy 533 3.958" 5359' 10344' 4-1/2" Tubing 12.6 L-80 IBT 3.958" 0 5359' Sands Top MD BtmMD Top TVD Btm TVD Feet Date Status T-3 6119 6136 3945 3960 17 6/28/20 Patched (1/10/21) T-5A 6334 6254 4138 4065 20 8/16/21 Open T-5 6423 6430 4219 4226 7 6/28/20 Open T-6L 6560 6570 4348 4357 10 8/16/21 Open T-10 6790 6803 4568 4581 13 8/16/21 Open T-11A 6978 6993 4751 4766 15 6/8/20 Open Sqz perfs 7758 7760 5517 5519 2 7/22/05 Sqzd off (July-05) 7830 7850 5589 5609 20 6/3/20 Open 7859 7876 5618 5635 17 6/3/20 Open Sqz perfs 8200 8202 5959 5961 2 7/22/05 Sqzd off (July-05) Sqz perfs 8698 8700 6457 6459 2 7/20/05 Plugged (5/28/20) T-55 8720 8743 6479 6502 23 8/19/05 Plugged (5/28/20) T-66 8940 8956 6699 6715 16 12/28/06 Plugged (5/28/20) TD 10,346' MD 8,104' TVD PBTD 8,675' MD 6,434' TVD Updated by DMA 08-26-21 CASING DETAIL CEMENT DETAIL PERFORATION DETAIL T-19 9-5/8" 7" 4-1/2" Liner 12-1/4" Hole: 174bbls 12ppg Type 1 cement. 60bbls back to surface 8-1/2" Hole: 103bbls 12.5ppg lead and 36.5bbls 15.8ppg tail pumped. No losses. 20bbls of 30bbls spacer seen back to surface. Puts ToC at ~350' MD. Equates to ~15% washout. 6-1/8" Hole: 147bbls class G 13.5ppg cement pumped. Lost circulation after 49bbls with no returns. 87bbls of 13.5ppg placed down liner lap on rig. Temp survey shows ToC at 8787' before squeeze. 5/9/05 CBL shows cement from TD to 8800', free pipe from 8800-7360' MD, and cement from 7360' - 5359' MD (liner top). 5 bbls @ 15.8ppg squeezed into perfs at 8200' on 7/23/05. Total of 6bbls 15.8ppg cement squeezed into 7758' perfs across 3 squeezes in July-2005. 60º Sail Angle from 2,095'-4,360' MD NS - 1 Ninilchik Unit 924' FNL, 1,172' FWL Sec. 34, T1N, R13W Permit #: 205-023 API #: 50-133-20549-00-00 Prop. Des: ADL 389180 KB Elevation: 169' (21' AGL) TD: 04/01/2005 SCHEMATIC T66 Baker Chemical Injection Nipple (Top) @ 2,382' MD T55 T19 T11A T5 T3 Composite BP set 5/25/20. HAL Obsidian. 10'cement dumped on top. ToC = 8675' MD Baker 4-1/2" Retrievable Patch ID 2.45"6,112' -6,142' (01/10/21) BoC at 7360' MD: 5/9/05 CBL ToC at ~8800' MD: 5/9/05 CBL T6L T10 T5A //(/ / ) T-5A 6334 6254 4138 4065 20 8/16/21 Open T3 6119 6136 3945 3960 17 6/28/20 Patched (1/10/21) 4155 T-6L 6560 6570 4348 4357 10 8/16/21 Open T-10 6790 6803 4568 4581 13 8/16/21 Open 6354 Kaitlyn Barcelona Hilcorp North Slope, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 E-mail: kaitlyn.barcelona@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal Received By: Date: DATE: 10/20/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL NS-1 (PTD 205-023) Perf 08/16/2021 Please include current contact information if different from above. 37' (6HW Received By: 10/25/2021 By Abby Bell at 12:09 pm, Oct 25, 2021 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: ____N2/Patch_______ 2. Operator Name:4.Current Well Class:5. Permit to Drill Number: Exploratory Development 3. Address: Stratigraphic Service 6. API Number: 7. If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9. Property Designation (Lease Number): 10. Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 10,346'none Casing Collapse Structural Conductor Surface 3,090psi Intermediate 5,410psi Production Liner 7,500psi Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16. Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Taylor Wellman 777-8449 Contact Name: Ryan Rupert Operations Manager Contact Email: Contact Phone: 777-8503 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by:COMMISSIONER THE COMMISSION Date: Comm.Comm.Sr Pet Eng Sr Pet Geo Sr Res Eng ryan.rupert @hilcorp.com 8,104'8,675'6,434'~1984psi 8,675' Baker ZXP Pkr 5,359' MD / 3,362' TVD; N/A Perforation Depth TVD (ft): Tubing Size: COMMISSION USE ONLY Authorized Name: 8,430psi Tubing Grade:Tubing MD (ft): See Attached Schematic STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ADL 384305 / ADL 389180 205-023 50-133-20549-00-00 Ninilchik State #1 Ninilchik / Beluga-Tyonek Gas Pool Length Size CO 701C Hilcorp Alaska, LLC 3800 Centerpoint Dr, Suite 1400 Anchorage Alaska 99503 PRESENT WELL CONDITION SUMMARY L-80 (12.6#) TVD Burst 5,359' MD 7,240psi 5,750psi 87' 1,478' 3,496' 87' 1,744' 20" 9-5/8" 66' 7"5,554' 1,744' Perforation Depth MD (ft): 5,554' See Attached Schematic 4-1/2" Authorized Title: 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: August 13, 2021 10,344'4,985' 4-1/2" 8,102' Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Meredith Guhl at 8:24 am, Jul 30, 2021 321-379 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.07.29 21:38:08 -08'00' Taylor Wellman (2143) 10-404 BJM 8/2/21 DSR-8/2/21SFD 7/30/2021 dts 8/2/2021 JLC 8/2/2021 Jeremy Price Digitally signed by Jeremy Price Date: 2021.08.02 14:17:08 -08'00' RBDMS HEW 8/3/2021 Well: Ninilchik State #1 Date: 7/28/2021 Well Name:Ninilchik State #01 API Number:50-133-20549-00-00 Current Status:Gas Producer Leg:N/A Regulatory Contact:Donna Ambruz 777-8305 Permit to Drill Number:205-023 First Call Engineer:Ryan Rupert (907) 777-8503 (O)(907) 301-1736 (C) Second Call Engineer:Ted Kramer (907) 777-8420 (O)(985) 867-0665 (C) Max. Expected BHP:~ 2548 psi @ 5635’ TVD Based on 0.452 psi/ft gradient to deepest sand (T-19) Max. Potential Surface Pressure ~ 1984 psi Based on 0.1 psi/ft to surface Well Summary Ninilchik State #1 is currently producing less than 50 MCFD. It likely has depleted sands and possibly water loading problems. The goal of this project is to perforate more sands in an attempt to increase production Notes Regarding Wellbore Condition x Min ID = 2.45” at 6112’ MD (Baker Retrievable Patch) x Inclination o Max is the sail angle of ~60 degrees from 2095’ MD – 4360’ MD o Then rolls to between 30 and 10 degrees across proposed perf areas x Recent history o 1/10/21: 30’ x 3.70” OD Baker retrievable patch ran to 6142’ MD and set o 6/3/20: EL perf’d T-19 with a 2-7/8” x 20’ gun. Made it down to 7850’ with no issues o 5/28/20: EL set CIBP set at 8685’ and 10’ cement dump bailed on top o 5/27/20: 1-3/4” Velocity String removed from well Nitrogen Risk x Discuss nitrogen asphyxiation concerns and identify any areas where nitrogen could collect and people could enter. x Consider tank placement based on wind direction and current weather forecast (venting Nitrogen during this job) x Ensure all crews are aware of stop work authority Well: Ninilchik State #1 Date: 7/28/2021 E-Line Perf 1. MIRU E-line and pressure control equipment 2. PT lubricator to 250psi low / 2,500 psi High 3. Rig up perf gun (Likely 2” – 2-3/8” 4-6 spf) 4. RIH and perforate the sands listed in the table below, per Geo/RE. Sand Perforation Top (MD) Perforation Bottom (MD) Perforation Top (TVD) Perforation Bottom (TVD) Total Footage (MD) BEL_135u ±5,884’±5,890’±3,745’±3,750’6‘ BEL_135L ±5,909’±5,952’±3,766’±3,802’43‘ BEL_136u ±5,980’±5,984’±3,825’±3,829’4‘ BEL_136L ±5,995’±6,002’±3,838’±3,844’7‘ T-5A ±6,328’±6,374’±4,132’±4,174’46‘ T-5BL ±6,467’±6,473’±4,261’±4,266’6‘ T-6u ±6,489’±6,493’±4,281’±4,285’4‘ T-6L ±6,546’±6,574’±4,334’±4,361’28‘ T-6A ±6,600’±6,604’±4,386’±4,389’4‘ T-10 ±6,782’±6,804’±4,560’±4,582’22‘ T-10A ±6,830’±6,835’±4,607’±4,612’5‘ T-10Bu ±6,847’±6,852’±4,624’±4,628’5‘ T-10BL ±6,877’±6,888’±4,653’±4,663’11‘ T-12u ±7,065’±7,102’±4,836’±4,872’63‘ T-12m ±7,111’±7,150’±4,880’±4,918’39‘ T-12L ±7,154’±7,181’±4,922’±4,948’27‘ T-12B ±7,196’±7,205’±4,964’±4,972’9‘ T-17 ±7,611’±7,615’±5,371’±5,375’4‘ T-17A ±7,635’±7,641’±5,395’±5,401’6‘ Consult with OE for what WHP’s to use. May be shot while flowing Make correlation pass and send log in to Operations Engineer, Reservoir Engineer and the Geologist. a.Use Gamma/CCL to correlate. b. Record initial and 5/10/15 minute tubing pressures and rates after firing c. Consult with RE/Geo between each perf interval: i. Matt Petrowsky (Geo): 814-421-6753 ii. Anthony McConkey (RE): 529-6199 5. RD E-Line Unit and turn well over to production. 37 SFD 7/30/2021 Well: Ninilchik State #1 Date: 7/28/2021 Contingency EL Plug or Patch 1. MIRU E-line, PT lubricator to 250 psi low / 2,500 psi high 2. RIH W/ GPT tool and find fluid level 3. RU Nitrogen Truck a. Push water back into formation b. Use GPT tool to confirm water level is below interval to perf c. Consult OE for pressure to leave on well for perforating 4. Once fluid level is below interval to isolate, MU 4-1/2” patch or plug 5. RIH and set plug or patch per OE. 6. RD E-Line Unit and turn well over to production. Attachments: 1. Current schematic 2. Proposed Schematic 3. Standard Well procedure – N2 Operations Size Type Wt Grade Conn. ID Top Btm 20" Conductor 113 K-55 PE Surf 87' 9-5/8" Surf Csg 40 L-80 BTC 8.835" Surf 1744' 7" Prod Csg 26 L-80 BTC 6.276" Surf 5554' 4-1/2" Liner 12.6 L-80 Hy 533 3.958" 5359' 10344' 4-1/2" Tubing 12.6 L-80 IBT 3.958" 0 5359' Sands Top (MD) Btm (MD) Top (TVD)Btm (TVD) Length (ft) Date Status T-3 6119 6136 3945 3960 17 6/28/20 Patched (1/10/21) T-5 6423 6430 4219 4226 7 6/28/20 Open T-11A 6978 6993 4751 4766 15 6/8/20 Open Sqz perfs 7758 7760 2 7/22/05 Sqzd off (July-05) 7830 7850 5589 5609 20 6/3/20 Open 7859 7876 5618 5635 17 6/3/20 Open Sqz perfs 8200 8202 2 7/22/05 Sqzd off (July-05) Sqz perfs 8698 8700 2 7/20/05 Plugged (5/28/20) T-55 8720 8743 6479 6502 23 8/19/05 Plugged (5/28/20) T-66 8940 8956 6699 6715 16 12/28/06 Plugged (5/28/20) TD 10,346' MD 8,104' TVD PBTD 8,675' MD 6,434' TVD Revised by CRR 7-28-21 CASING DETAIL CEMENT DETAIL T-19 PERFORATION DETAIL 9-5/8" 7" 4-1/2" Liner 12-1/4" Hole: 174bbls 12ppg Type 1 cement. 60bbls back to surface 8-1/2" Hole: 103bbls 12.5ppg lead and 36.5bbls 15.8ppg tail pumped. No losses. 20bbls of 30bbls spacer seen back to surface. Puts ToC at ~350' MD. Equates to ~15% washout. 6-1/8" Hole: 147bbls class G 13.5ppg cement pumped. Lost circulation after 49bbls with no returns. 87bbls of 13.5ppg placed down liner lap on rig. Temp survey shows ToC at 8787' before squeeze. 5/9/05 CBL shows cement from TD to 8800', free pipe from 8800-7360' MD, and cement from 7360' - 5359' MD (liner top). 5 bbls @ 15.8ppg squeezed into perfs at 8200' on 7/23/05. Total of 6bbls 15.8ppg cement squeezed into 7758' perfs across 3 squeezes in July-2005. 60º Sail Angle from 2,095'-4,360' MD NS - 1 Ninilchik Unit 924' FNL, 1,172' FWL Sec. 34, T1N, R13W Permit #: 205-023 API #: 50-133-20549-00-00 Prop. Des: ADL 389180 KB Elevation: 169' (21' AGL) TD: 04/01/2005 SCHEMATIC T66 Baker Chemical Injection Nipple (Top) @ 2,382' MD T55 T19 T11A T5 T3 Composite BP set 5/25/20. HAL Obsidian. 10'cement dumped on top. ToC = 8675' MD Baker 4-1/2" Retrievable Patch ID 2.45"6,112' -6,142' (01/10/21) BoC at 7360' MD: 5/9/05 CBL ToC at ~8800' MD: 5/9/05 CBL Size Type Wt Grade Conn. ID Top Btm 20" Conductor 113 K-55 PE Surf 87' 9-5/8" Surf Csg 40 L-80 BTC 8.835" Surf 1744' 7" Prod Csg 26 L-80 BTC 6.276" Surf 5554' 4-1/2" Liner 12.6 L-80 Hy 533 3.958" 5359' 10344' 4-1/2" Tubing 12.6 L-80 IBT 3.958" 0 5359' Sands Top (MD) Btm (MD) Top (TVD)Btm (TVD) Length (ft) Date Status T-3 6119 6136 3945 3960 17 6/28/20 Patched (1/10/21) T-5 6423 6430 4219 4226 7 6/28/20 Open T-11A 6978 6993 4751 4766 15 6/8/20 Open Sqz perfs 7758 7760 2 7/22/05 Sqzd off (July-05) 7830 7850 5589 5609 20 6/3/20 Open 7859 7876 5618 5635 17 6/3/20 Open Sqz perfs 8200 8202 2 7/22/05 Sqzd off (July-05) Sqz perfs 8698 8700 2 7/20/05 Plugged (5/28/20) T-55 8720 8743 6479 6502 23 8/19/05 Plugged (5/28/20) T-66 8940 8956 6699 6715 16 12/28/06 Plugged (5/28/20) TD 10,346' MD 8,104' TVD PBTD 8,675' MD 6,434' TVD Revised by CRR 7-28-21 PERFORATION DETAIL 9-5/8" 7" 4-1/2" Liner 12-1/4" Hole: 174bbls 12ppg Type 1 cement. 60bbls back to surface 8-1/2" Hole: 103bbls 12.5ppg lead and 36.5bbls 15.8ppg tail pumped. No losses. 20bbls of 30bbls spacer seen back to surface. Puts ToC at ~350' MD. Equates to ~15% washout. 6-1/8" Hole: 147bbls class G 13.5ppg cement pumped. Lost circulation after 49bbls with no returns. 87bbls of 13.5ppg placed down liner lap on rig. Temp survey shows ToC at 8787' before squeeze. 5/9/05 CBL shows cement from TD to 8800', free pipe from 8800-7360' MD, and cement from 7360' - 5359' MD (liner top). 5 bbls @ 15.8ppg squeezed into perfs at 8200' on 7/23/05. Total of 6bbls 15.8ppg cement squeezed into 7758' perfs across 3 squeezes in July-2005. T-19 Additional Perfs per sundry CASING DETAIL CEMENT DETAIL 60º Sail Angle from 2,095'-4,360' MD NS - 1 Ninilchik Unit 924' FNL, 1,172' FWL Sec. 34, T1N, R13W Permit #: 205-023 API #: 50-133-20549-00-00 Prop. Des: ADL 389180 KB Elevation: 169' (21' AGL) TD: 04/01/2005 PROPOSED SCHEMATIC T66 Baker Chemical Injection Nipple (Top) @ 2,382' MD T55 T19 T11A T5 T3 Composite BP set 5/25/20. HAL Obsidian. 10'cement dumped on top. ToC = 8675' MD Baker 4-1/2" Retrievable Patch ID 2.45"6,112' -6,142' (01/10/21) BoC at 7360' MD: 5/9/05 CBL ToC at ~8800' MD: 5/9/05 CBL STANDARD WELL PROCEDURE NITROGEN OPERATIONS 12/08/2015 FINAL v1 Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. Samuel Gebert Hilcorp Alaska, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: sam.gebert@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: DATE: 01/22/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL NS-1 (PTD 205-023) PLUG 01/11/2021 Please include current contact information if different from above. Received by the AOGCC 01/22/2021 PTD: 2050230 E-Set: 34608 Abby Bell 01/25/2021 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: Set Patch Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 10,365 feet 8,675 feet true vertical 8,104 feet N/A feet Effective Depth measured 8,675 feet 5,359 feet true vertical 6,434 feet 3,362 feet Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth)4-1/2" 12.6# / L-80 5,359' MD 3,362' TVD Packers and SSSV (type, measured and true vertical depth)Baker ZXP; N/A 5,359' MD 3,362' TVD N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Jake Flora Authorized Title:Operations Manager Contact Email: Contact Phone:777-8442 WINJ WAG 1 Water-Bbl MD 87' 1,744' 10,344' 0 Oil-Bbl measured true vertical Packer 4-1/2" 3,496' measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Ninilchik / Beluga-Tyonek Gas PoolN/A measured TVD Tubing Pressure 9550 Ninilchik State #1 N/A ADL 384305 / ADL 389180 5,554' Plugs Junk STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 205-023 50-133-20549-00-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 320-537 177 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 0 Authorized Signature with date: Authorized Name: 0 Casing Pressure Liner 4,985' 220 8,102' 0 Representative Daily Average Production or Injection Data 66' 1,723' 5,533' Conductor Surface Intermediate Production 7,500psi Casing Structural 20" 9-5/8" 7" Length 7,240psi 5,750psi Collapse 1,500psi 3,090psi 5,410psi jake.flora@hilcorp.com Senior Engineer:Senior Res. Engineer: 8,430psi Burst 3,060psi87' 1,478' t Fra O 6. A G L PG , R Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Samantha Carlisle at 11:08 am, Jan 19, 2021 Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2021.01.18 13:19:23 -09'00' Taylor Wellman Rig Start Date End Date E-Line 1/10/21 1/10/21 01/10/2021 - Sunday RU AK E-Line. Set Baker 30ft 45KB Patch 6,112-6,142'. RD E-Line. Turn over to production. Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Ninilchik State 01 50-133-20549-00-00 205-023 KOP @ 250' MD/TVD Build 4.0º/100' from 250'- 2,095' MD Hold 60º from 2,095' - 4,360' MD Drop 2º/100' to 7,990' MD Hold 2.3º from 7,990' to TD @ 10,346' MD Azimuth: 290.6 deg NS - 1 Ninilchik Unit 924' FNL, 1,172' FWL Sec. 34, T1N, R13W Cement Top at 8,800' Expro Radial Bond Log –Logged SCMT/GR/CCL from 10,221'-5150' with 1600 psi WHP –Good bond from 10,221' -8,800‘ KB –No bond between 8,800' -7,360‘ KB –Sporadic bond between 7,360' -5,554‘ KB –Good bond between 5,554' -5,400‘ KB Permit #:205-023 API #:50-133-20549-00-00 Prop. Des:ADL - 389180 KB elevation:169' (21' AGL) WBS #:WO.07.15722.EXP Latitude: 60°08' 20.168" N Longitude:151°31' 22.095" W X:222,422.643 Y:2,245,904.532 Spud:3/12/2005 TD:4/1/2005 Rig Released:12:00 hrs 4/9/2005 Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 87' TVD 0' 87' Surface Casing 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 1,744' TVD 0' 1,478' 12-1/4" hole Cmt w/ 390 sks (174 bbls) of 12.0 ppg of Type-1, 60 bbls cmt to surface Intermediate Casing 7" L-80 26 ppf BTC Top Bottom MD 0' 5,554' TVD 0' 3,496' 8-1/2" hole Cmt w/ 233 sks (103 bbls) of 12.5 ppg Lead, & 175 sks (36.5 bbls) of 15.8 ppg Tail. Bumped plug, no cmt to surface, floats held Liner 4-1/2" L-80 12.6 ppf Hydril 533 Top Bottom MD 5,359' 10,344' TVD 3,362' 8,102' * 6-1/8" hole Cmt w/ 455 sks (147 bbls) 13.5 ppg (No spacer or cement to surface) * Lost partial circulation after pumping 49 bbls displacement * Pollard Temp Log indicated TOC at 8,787' MD before Liner Top Squeeze * Squeezed Liner Top with 318 sks (103 bbls) 13.5 ppg cement (Flowed back 15 bbls cement after bleeding off 1000 psi final pressure) ZXP Liner Packer with 15' Tieback Extension @ 5,359' MD (Top) Flex-Lock Liner Hanger @ 5,384' MD (Top) Marker Joints @ 7,241'-7,281' MD (Two 20' long) WRP tagged @ 8,685' w/ 10' cmt - TOC @ 8,675' 5/28/20 Marker Joints @ 8,821'-8,861' MD (Two 20' long) Landing Collar @ 10,244' MD (Top) Float Collar @ 10,278' MD (Top) Float Shoe @ 10,344' MD (Bottom) Bottom Tagged @: 10,201' MD w/ Wireline (9/5/14) 10,223' MD w/ Wireline (1/28/14) 10,220' MD w/ Slick Line (8/22/08) 10,221' MD with Expro SCMT/GR/CAL (5/9/05)TD 10,346' MD 8,104' TVD PBTD 8,675' MD 6,434' TVD Tie-back Tubing 4-1/2" L-80 12.6 ppf IBT Top Bottom MD 21' 5,359' TVD 21' 3,362' 5.930" OD/3.858" ID8,430 psi burst / 7,500 psi collapse Well Name & Number: Municipality: Perforations (MD): Angle @ KOP & Depth: Date Completed: Revised by: Ninilchik State #1 Kenai Peninsula Borough 6,119 - 8,956' ~ 4º / 100 ft @ 250' MD 7/15/2005 Donna Ambruz Lease: State: Perf (TVD): Ninilchik Unit Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA 3,945' - 6,715' 1.8º RKB:(AMSL)21' (AGL) 01-18-21 Baker Chemical Injection Nipple (Top) @ 2,382' MD WRP tagged @ 8,685' w/ 10' cmt - TOC @ 8,675' 5/28/20 T66 T55 T19 T11A T9B T6A T5B&C T3 Baker 4-1/2" Retrievable Patch ID 2.515" 6,112' -6,142' 01/10/21 SCHEMATIC 7\SHRI5HTXHVW $EDQGRQ 3OXJ3HUIRUDWLRQV )UDFWXUH6WLPXODWH5HSDLU:HOO 2SHUDWLRQVVKXWGRZQ 6XVSHQG3HUIRUDWH2WKHU6WLPXODWH3XOO7XELQJ &KDQJH$SSURYHG3URJUDP 3OXJIRU5HGULOO 3HUIRUDWH1HZ3RRO 5HHQWHU6XVS:HOO $OWHU&DVLQJ 2WKHU6HW3DWFK 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3HUI79' 1LQLOFKLN8QLW &RXQWU\ $QJOH#3HUIV *URXQG/HYHO 5HYLVLRQ'DWH $ODVND 86$ 5.%$06/ $*/ %DNHU&KHPLFDO ,QMHFWLRQ1LSSOH 7RS# 0' :53WDJJHG# Z FPW 72&# ϱͬϮϴͬϮϬ dϲϲ dϱϱ dϭϵ dϭϭ dϵ dϲ dϱΘ dϯ ϰͲϭͬϮΗZĞƚƌŝĞǀĂďůĞWĂƚĐŚ /Ϯ͘ϱϭϱΗ Samuel Gebert Hilcorp Alaska, LLC GeoTech Assistant 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: sam.gebert@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: DATE: 11/03/2020 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL NS-1 (PTD 205-023) PERFORATING RECORD 06/08/2020 Please include current contact information if different from above. Received by the AOGCC 11/03/2020 Abby Bell 11/03/2020 PTD: 2050230 E-Set: 34183 Samuel Gebert Hilcorp Alaska, LLC GeoTech Assistant 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: sam.gebert@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: DATE: 11/03/2020 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL NS-1 (PTD 205-023) PERFORATING RECORD 06/03/2020 Please include current contact information if different from above. Received by the AOGCC 11/03/2020 Abby Bell 11/03/2020 PTD: 2050230 E-Set: 34182 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: N2 +Pull CT Vel String Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 10,365 feet 8,675 feet true vertical 8,104 feet N/A feet Effective Depth measured 8,675 feet 5,359 feet true vertical 6,434 feet 3,362 feet Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth)4-1/2" 12.6# / L-80 5,359' MD 3,362' TVD Packers and SSSV (type, measured and true vertical depth)Baker ZXP; N/A 5,359' MD 3,362' TVD N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Ted Kramer Authorized Title:Operations Manager Contact Email: Contact Phone:777-8420 WINJ WAG 0 Water-Bbl MD 87' 1,744' 10,344' 0 Oil-Bbl measured true vertical Packer 4-1/2" 3,496' measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Ninilchik / Beluga-Tyonek Gas PoolN/A measured TVD Tubing Pressure 1871 Ninilchik State #1 N/A ADL 384305 / ADL 389180 5,554' Plugs Junk STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 205-023 50-133-20549-00-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 320-161 186 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 0 Authorized Signature with date: Authorized Name: 0 Casing Pressure Liner 4,985' 100 8,102' 0 Representative Daily Average Production or Injection Data 66' 1,723' 5,533' Conductor Surface Intermediate Production 7,500psi Casing Structural 20" 9-5/8" 7" Length 7,240psi 5,750psi Collapse 1,500psi 3,090psi 5,410psi tkramer@hilcorp.com Senior Engineer:Senior Res. Engineer: 8,430psi Burst 3,060psi87' 1,478' t Fra O 6. A G L PG , R Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Jody Colombie at 3:36 pm, Jul 23, 2020 Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.07.23 14:58:00 -08'00' Taylor Wellman DSR-7/23/2020 RBDMS HEW 7/23/2020 SFD 7/28/2020 N2 +Pull CT Vel String Plug Perforations Perforate gls 10/20/2020 Rig Start Date End Date 5/26/20 6/28/20 PTW, JSA with Halliburton E-line SLB coil/N2, Cruz Crane operator and Hilcorp Rep. Discuss SIMOPS Rig up Halliburton E- line unit and SLB N2 pump. Cool down N2 unit. PT lines 250/3500 psi. Online bullhead N2 down tubing at 800 scf/min. Initial WHP 265 psi. Pressure increase to 550 psi and broke over pushing fluid away. 55,000 SCF pumped. Shut down N2 pump. Pressure stabilized at 350 psi. RIH with 4.5" Halliburton Obsidian plug. Tie into marker joints at 8,821'-8,861'. Set plug at 8,685' RKB. POOH to surface. SITP 350 psi. Start mixing cement. Make up 40' cement bailer. Stab on well. PT stack 250/3,000 psi. RIH tag plug at 8,685'. Pick up 10' and dump 10' of cement ontop of plug. New cement top 8,675'. POOH to surface. Online with N2 @ 1,200 scf/min pressure up on cement and plug to 1,800 psi. Shut in master and swab. Rig down E-line. Install well house. 118,000 scf of N2 pumped for pressure up. 05/27/2020 - Wednesday PTW, JSA with SLB coil, Cruz Construction Crane operator, Yellow jacket , and Hilcorp Rep. Initial WHP on V string 245 psi. Pick injector head stab 2 x 10' lubricators. Make up YJOS BHA. 2.125" OD external slip connector. Pull test 35K. 2.125" DFCV, 3" Gs spear with blank plug in nozzle. PT 250/3,500 psi. Open V string. 320 psi WHP. Bleed down to return tank. Online with produced water down CT 1.75" V string. Pump 1.2 bbls to catch fluid. Bleed off pressure. Monitor for flow to open top tank for 15 minutes. RIH to latch hanger G profile. Tagged and set down 5k at 12' from CT zero. Pu 10K over calculated wet string weight of 25K. Turn out top lock down screws to 4" out. Pick up on V string 41K. and release CT hanger from profile. WHP increase to 265 psi. Close pipe and slip rams. Bleed off pressure and monitor flow for 30 minutes. V string static and overbalanced. Strip off wellhead and cut hanger BHA. Remove YJOS pulling equipment and dress both ends of 1.75" CT. Make up 1.75" x 1.34 whip to 1.75" x .125 wall v string. Strip lubricator back down over BOPE stack. Perform push pull test. Equalize BOPE rams. Open rams and spool OOH with 8,940' of 1.75" V string. Tagged up at surface. Close master and swab valve. Break down V string BHA. Stab on well. Blow reel down with N2. Pop off well. Rig down SLB CTU 13 Metal dumpster delivered and spotted on edge of pad. Position CTU and crane. SLB will cut coil on location. V string will be disposed of to scrap yard. HES deliver boom truck and E-line unit. Location secure. SDFN. Pollard SL pack off plug recovered. 05/28/2020 - Thursday 05/26/2020 - Tuesday PTW, JSA with SLB , Cruz and Hilcorp Rep. MIRU SLB CTU 13 with 1.75" 24 BOPE test witness notification sent 5/25/2020 @ 12:40 PM. Witness waived by Jim Regg 5/25/2020 @ 4:48 PM. Test all rams and valves to 250/3,000 psi. Perform accumulator draw down test. BOPE test passed. Operations bleed Well ( v string) tubing down from 180 psi to zero. Confirm no flow at return tank. CT volume 19.7 bbls. Online with produced water down 1.75" v string at 2 bbls/min 18.3 bbls pumped and pressure increased rapidly from 0 to 750 psi. Shut in well with 727 psi on V string. Fill SLB pump displacement tanks with 20 bbls of produced water. Fuel equipment. SDFN. Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Ninilchik State 01 50-133-20549-00-00 205-023 Online with produced water down 1.75" v string at 2 bbls/min 18.3 bbls pumped and pressure increased rapidly from 0 to 750 psi. Shut in well with 727 psi on V string. Pick up 10' and dump 10' of cement ontop of plug. POOH w Velocity string JSA with Halliburton E-line SLB coil/N2, RIH with 4.5" Halliburton Obsidian plug. Strip off wellhead and cut hanger BHA. Test all rams and valves to 250/3,000 plug at 8,685' RKB. Open rams and spool OOH with 8,940' of 1.75" V string. MIRU SLB CTU 13 with 1.75" 24 BOPE test w Pump 1.2 bbls to catch fluid. Bleed off pressure. Monitor for flow to open top tank for 15 minutes. RIH to latch hanger G profile. Tagged and set down 5k at 12'from CT zero. Pu 10K over calculated wet string weight of 25K. Turn out top lock down screws to 4" out. Pick up on V string 41K. Plug at 8685 ft RIH tag plug at 8,685'. Online bullhead N2 down tubing at 800 scf/min. Rig Start Date End Date 5/26/20 6/28/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Ninilchik State 01 50-133-20549-00-00 205-023 06/08/2020 - Monday Sign in. PTW and JSA. Spot equipment and rig up lubricator. PT to 250 psi low and 3,500 psi high. Will shoot well flowing. Well flowing 75.3 at 180.6 psi. RIH w/ 2-7/8" x 15' HC Razor, 6 spf, 60 deg phase perf gun and tie into with log sent from town. Ran correlation log and send to town. Get ok to perf from 6,978' to 6,993'. Spot and fire gun with well flowing 75.3K at 183.3 psi. After 5 min - 74K at 180.6 psi, 10 min - 98.1K at 180.6 psi and 15 min - 101.1K at 180.6 psi. POOH. All shots fired gun was wet. Rig down lubricator and turn well back to field. 06/28/2020 - Sunday PTW and JSA. Spot equipment and rig up lubricator. PT to 250 psi low and 3,000 psi high. Well flowing 83.1K at 184.7. RIH w/GPT tool and tie into log from town. Stopped at 6,700' and did not sit down but did not see any fluid to this depth. Ran correlation log and send to town. POOH. We were2' deep on correlation to OHL. Shifted up 2'on correlation log, RIH w/2- 7/8" x 7' Razor HC, 6 spt, 60 deg phase and tie into revised GPT. Run correlation log and send to town. Told to shift down 1'. Shifted down 1',spotted and fired gun from 6,423' to 6,430' with 89.2K at 184.7psi. After 5 min - 498K at 190.5 psi, 10 min - 430K at 181.9psi and 15 min - 202.3K at 183.3. POOH. All shots fired and gun was dry. RIH w/ 2-7/8" x 17' Razor HC, 6 spt, 60 deg phase and tie into revised GPT. Run correlation log and send to town. Get ok to from town. Spot gun from 6,119'' to 6,136' with flow 290K at 184.2psi. After 5 min - 520.5K at 190.3 psi, 10 min - 579.8K at 187.5 psi and 15 min - 439.6K at 180.6 psi. POOH. All shots fired and gun bull plug packed with dry sand and gun had a lot in it also. Rig downlubricator and turn well over to field. 1520 hrs flow is down to 169.6K at 181.9 psi. 06/03/2020 - Wednesday PTW, JSA RU Halliburton E-line. RIH and pull strip top tie in. Send correlation log to town. 2 -7/8" Razor charges 6 spf, 60° phasing. Shoot 7,859'-7,876' . Pressure dropped from 1,709 psi to 1,680 psi rapidly. Pressure continue to drop. Tagged up at surface. Shut in well. SITP 1,480 psi. make up 2nd gun. (20'). RIH pull strip. Send log to town. On depth. Shooting TyonekT-19 sands. Shoot 7,830'-7,850' 1,128 psi. after shots pressure was at 1,013 psi. POOH to surface Final SITP 960 psi. Both guns came back dry. Pulled bull nose and both were dry. Rig down E-line unit. Turn well over to production. Shoot 7,830'-7,850' 1,128 Shoot 7,859'-7,876' . Pressure Get ok to perf from 6,978' to 6,993' 6,119'' to 6,136' HES eline fired gun from 6,423' to 6,430' SCHEMATIC KOP @ 250' MD/TVD Build 4.0º/100' from 250'- 2,095' MD Hold 60º from 2,095' - 4,360' MD Drop 2º/100' to 7,990' MD Hold 2.3º from 7,990' to TD @ 10,346' MD Azimuth: 290.6 deg NS - 1 Ninilchik Unit 924' FNL, 1,172' FWL Sec. 34, T1N, R13W Cement Top at 8,800' Expro Radial Bond Log –Logged SCMT/GR/CCL from 10,221'-5150' with 1600 psi WHP –Good bond from 10,221' -8,800‘ KB –No bond between 8,800' -7,360‘ KB –Sporadic bond between 7,360' -5,554‘ KB –Good bond between 5,554' -5,400‘ KB Permit #:205-023 API #:50-133-20549-00-00 Prop. Des:ADL - 389180 KB elevation:169' (21' AGL) WBS #:WO.07.15722.EXP Latitude: 60°08' 20.168" N Longitude:151°31' 22.095" W X:222,422.643 Y:2,245,904.532 Spud:3/12/2005 TD:4/1/2005 Rig Released:12:00 hrs 4/9/2005 Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 87' TVD 0' 87' Surface Casing 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 1,744' TVD 0' 1,478' 12-1/4" hole Cmt w/ 390 sks (174 bbls) of 12.0 ppg of Type-1, 60 bbls cmt to surface Intermediate Casing 7" L-80 26 ppf BTC Top Bottom MD 0' 5,554' TVD 0' 3,496' 8-1/2" hole Cmt w/ 233 sks (103 bbls) of 12.5 ppg Lead, & 175 sks (36.5 bbls) of 15.8 ppg Tail. Bumped plug, no cmt to surface, floats held Liner 4-1/2" L-80 12.6 ppf Hydril 533 Top Bottom MD 5,359' 10,344' TVD 3,362' 8,102' * 6-1/8" hole Cmt w/ 455 sks (147 bbls) 13.5 ppg (No spacer or cement to surface) * Lost partial circulation after pumping 49 bbls displacement * Pollard Temp Log indicated TOC at 8,787' MD before Liner Top Squeeze * Squeezed Liner Top with 318 sks (103 bbls) 13.5 ppg cement (Flowed back 15 bbls cement after bleeding off 1000 psi final pressure) ZXP Liner Packer with 15' Tieback Extension @ 5,359' MD (Top) Flex-Lock Liner Hanger @ 5,384' MD (Top) Marker Joints @ 7,241'-7,281' MD (Two 20' long) WRP tagged @ 8,685' w/ 10' cmt - TOC @ 8,675' 5/28/20 Marker Joints @ 8,821'-8,861' MD (Two 20' long) Landing Collar @ 10,244' MD (Top) Float Collar @ 10,278' MD (Top) Float Shoe @ 10,344' MD (Bottom) Bottom Tagged @: 10,201' MD w/ Wireline (9/5/14) 10,223' MD w/ Wireline (1/28/14) 10,220' MD w/ Slick Line (8/22/08) 10,221' MD with Expro SCMT/GR/CAL (5/9/05)TD 10,346' MD 8,104' TVD PBTD 8,675' MD 6,434' TVD Tie-back Tubing 4-1/2" L-80 12.6 ppf IBT Top Bottom MD 21' 5,359' TVD 21' 3,362' 5.930" OD/3.858" ID8,430 psi burst / 7,500 psi collapse Well Name & Number: Municipality: Perforations (MD): Angle @ KOP & Depth: Date Completed: Revised by: Ninilchik State #1 Kenai Peninsula Borough 6,119 - 8,956' ~ 4º / 100 ft @ 250' MD 7/15/2005 Donna Ambruz Lease: State: Perf (TVD): Ninilchik Unit Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA 3,945' - 6,715' 1.8º RKB:(AMSL)21' (AGL) 7/15/20 Baker Chemical Injection Nipple (Top) @ 2,382' MD WRP tagged @ 8,685' w/ 10' cmt - TOC @ 8,675' 5/28/20 - Eventually pushed to bottom after shallower T66 T55 T19 T11A T9B T6A T5B&C T3 Samuel Gebert Hilcorp Alaska, LLC GeoTech Assistant 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: sam.gebert@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: DATE: 11/03/2020 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL NS-1 (PTD 205-023) PLUG SETTING RECORD 05/27/2020 Please include current contact information if different from above. Received by the AOGCC 11/03/2020 Abby Bell 11/03/2020 PTD: 2050230 E-Set: 34181 Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.04.10 11:44:33 -08'00' Taylor Wellman By Samantha Carlisle at 12:32 pm, Apr 10, 2020 320-161 gls 10-404 gls 4/23/20 * 3000 psi BOP test (Coil tbg) DSR-4/13/2020 +Pull CT Vel String X CT SFD 4/10/2020 4/23/2020 dts 4/24/2020 JLC 4/23/2020 Well Prognosis Well: NS #1 Date: 4-22-2020 Well Name: Ninilchik State #1 API Number: 50-133-20549-00-00 Current Status: Leg: N/A Estimated Start Date: May 24,2020 Rig: 401 Reg. Approval Req’d? 10-403 Date Reg. Approval Rec’vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 205-023 First Call Engineer: Ted Kramer (907) 777-8420 (O)(985) 867-0665 (M) Second Call Engineer: Taylor Wellman (907) 777-8449 (O)(907) 947-9533 (M) AFE Number: Max. Expected BHP:(Based upon 0.45 psi/ft gradient) Max. Potential Surface Pressure: ~2,536 psi @ 5,635 TVD ~1,972 psiH[LWLQJSHUIV DUHORZSUHVVXUHSVL DQGZDWHUHGRXW*/6 (Based upon the Max. Exp. BHP & a 0.10 psi/ft gas gradient to surface) Brief Well Summary Ninilchik State #1 (NS #1) was drilled and completed in April 2005. Following the primary cement job (on the 4- 1/2” liner), a CBL showed poor (to no) cement behind pipe across much of the Tyonek formation. In July 2005, Marathon attempted a squeeze cement job over the interval 7,758’ to 8,202’ (across the Tyonek T19 sands). Post squeeze Pressure Tests (PTs) showed the perforations would not hold pressure. In August 2005 the Tyonek T55 sand was perforated and the T66 sand added in December 2006. A 3/8” capillary string was installed in the NS #1 wellbore in November 2008. In July 2010 the capillary string was removed and a 1-3/4” coil velocity string installed. The purpose of this work/sundry is to pull the 1.75” coil velocity string, and perforate up to six (6) new Tyonek intervals (the T19, T11A, T9B, T6A, T5, and T3 sands). Notes Regarding Wellbore Condition: x Bottom last tagged at 10,201’ WL depth on 9/5/14 x Previously tagged at 10,233’ WL depth on 1/28/14 Pre-Sundry Work 1. MI RU Pump Truck and sand hopper. 2. Mix and bull head sand slurry in small batches followed by a flush volume of 19 bbls to clear sand from coil tubing. 3. Record pressures before and immediately after each pumping and a pressure 1 hour after pumping ends. 4. Bleed off pressure and monitor well for 15 min prior to starting the next pumping of slurry. 5. Repeat until 4-1/2” casing is filled to 8,950’. Coiled Tubing Procedure: ϭ͘MIRU Coiled Tubing Unit (CTU) and BOP equipment. Ϯ͘PT BOPE to 250 psi Low / 3,000 psi High.;ƉƵŵƉĚŽǁŶdǆƚďŐĂůƐŽ͍Ϳ ϯ͘Pump 1.5x coil tubing volume to kill v string. Open to choke and perform No flow test for 30 minutes. ϰ͘Make up MHA with hydraulic disconnect. Pull test 30K. Insall 1.5” GS spear. Stab on well with lubricator and Pressure test 250/3000 psi. Well Prognosis Well: NS #1 Date: 4-22-2020 34. MIRU RU Coil Tubing. RU BOP and test 250 psi low and 3,500 psi high. 35. RIH With coil and jet nozzle. 36. RI up Nitrogen pump. Drop ball, and using Nitrogen to blow well dry. Leave 1,600 psi Nitrogen pressure on the well. RDMO Coil. E-line Procedure 37. RU E-line unit. Pressure Test lubricator to 250 psi Low / 2,500 psi High. 38. PU & RIH with 2-7/8” Perforating Guns. RIH and perforate the perf intervals listed in the table below starting with the bottom and working up. a. Tyonek sands will be perforated one at a time starting with the lowest interval. b. If an interval proves to be non-productive, Hilcorp will move up to the next interval. If the interval is water producing, the water will be pushed back into the perforations and a CIBP or a casing patch will be set to isolate water. c. Note that all of these Tyonek sands are part of the same Ninilchik, Beluga-Tyonek Gas Pool. d. The proposed perforations are also shown on the proposed schematic in red font. e. Final perfs tie-in sheet will be provided in the field for exact perf intervals. f.Use Gamma/CCL to correlate. g. Nitrogen may be used to provide the correct underbalance or to push away water. h. The perforations in the table above are governed by Conservation Order 701C. 39. RD E-Line. 40. Return NS #1 to production. Attachments: 1. Actual Schematic 2. Proposed Schematic 3. Coil BOPE Schematic 4. Standard Nitrogen Procedure Formation Sand Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt. Tyonek T3 +6,111’+6,170’+3,938’+3,990’59‘ Tyonek T5 +6,322’+6,474’+4,127’+4,267’152‘ Tyonek T6A +6,541’+6,578’+4,330’+4,365’37‘ Tyonek T9B +6,775’+6,805’+4,554’+4,583’30‘ Tyonek T11A +6,964’+7,047’+4,737’+4,818’83’ Tyonek T19 +7,822’+7,880’+5,581’+5,639’58’ Well Prognosis Well: NS #1 Date: 4-22-2020 5. RIH and latch coil hanger GS profile. Perform push pull test against hanger seals. Pull test to the estimated V string weight. 6. Slack off to V string hanging weight and back out upper hanger lock down screws. 7. Measure from Bottom CT hanger bolts to 3’ +/- above coil BOPE stack. Pull v string above BOPE and close pipe rams and slip rams. Perform Push pull test against rams to ensure good engagement. 8. Drop chain tension, traction, and pack off pressure. Roll chains in hole and break friction bite. 9. Unscrew Lubricator CO62 connection on top of BOPE stack. With chains rolling in hole pick/strip injector head off tree to expose V string. 10. Stop injector chains. Apply traction and tensions to regain control of CT on injector /reel side. 11. Cut coil below CT hanger. Swing crane and injector head to side of well house and RIH to break down MHA. 12. Dress each side of coiled tubing (well bore V string and 1.75” CT whip end from injector head.) 13. Make up roll on or double dimple connector on V string completion. 14. Bring crane over and stab double roll on connector from injector head coil to completion coil and roll on. 15. Drop chain traction and tension. Break friction by POOH with chains and lower injector/lubricator by stripping back down to BOPE stack. 16. Screw on C062 lubricator threads to BOPE top. Re apply injector head chain tension and traction. Increase pack off pressure. Perform pull test of double roll on connector to actual CT weight seen while lifting coil from hanger to above BOPE stack. 17. With triplex pump fluid pack lubricator above BOPE and pressure test 250/3000 psi for 5 minutes. 18. Open EQ ports on Pipe and slip rams to equalize pressure above and below rams prior to opening. 19. Open pipe rams and then slip rams. 20. Travel with V string in each direction watching weight. Ensure coil completion is free. 21. RU SLB cement ABT and pump truck. PT Cement lines to 250/3500 psi. 22. With V string coil connector 5’ above BOPE. Close pipe and slip rams. Perform push/pull to confirm engagement. Slack off to neutral weight. With field triplex pump apply 500 psi to lubricator to hold pressure above pipe rams and below injector head stripper pack off assembly to monitor coil connector during cement job. 23. Spot a balanced cement plug by bullheading 5 bbls of fresh water ahead and then 4 BBLS of 15.8 PPG class G cement down CT velocity string. Pump water to displace cement with V string volume of 19.5 bbls BBLS. 24. PU V string and clean up excess cement by reversing out. Est TOC = 8,688’. 25. Spool V string OOH. Watch weight indicator when double roll on connector passes through Injector head pack off assembly. 26. Keep area between wellhead and coil spooler clear of personnel until double roll on connector had made 2 full wraps on reel. 27. Spool V string OOH and tag up on BHA. Close master and swab valve. 28. Purge residual fluid out of V string with N2 once at surface. 29. Pop off well and break down V string BHA. 30. RD stand back CTU. Pre-Perf Work: 31. MIRU E-line. 32. Pressure Test lubricator to 250 psi Low / 2,500 psi High. 33. PU & RIH with Dump Bailer and tag top of cement. If cement is not above 8,688’, add cement with the dump bailer bring cement top up to 8,688’. POOH. WOC. Coil Tubing Procedure Pull Velocity string. new perfs Sand and cement cap to 8690 ft. - tag TOC with eline. CT program needs more detail. gls (pulling Velocity string.) Need Wellhead diagram before and after SUPERCEDED SUPERCEDED Proposed Perfs SUPERCEDED gls 1 Carlisle, Samantha J (CED) From:Schwartz, Guy L (CED) Sent:Thursday, April 23, 2020 12:31 PM To:Ted Kramer Cc:Donna Ambruz Subject:RE: [EXTERNAL] RE: NS 1 Cement Pull Coil and Perf Only 4-15-20 Ted, Thanksforupdatedprocedure.IwasconcernedonbarriersbasedontheMASPgivenat1900psi. GuySchwartz Sr.PetroleumEngineer AOGCC 907Ͳ301Ͳ4533cell 907Ͳ793Ͳ1226office CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Guy Schwartz at (907-793-1226 ) or (Guy.schwartz@alaska.gov). From:TedKramer<tkramer@hilcorp.com> Sent:Thursday,April23,202011:28AM To:Schwartz,GuyL(CED)<guy.schwartz@alaska.gov> Cc:DonnaAmbruz<dambruz@hilcorp.com> Subject:RE:[EXTERNAL]RE:NS1CementPullCoilandPerfOnly4Ͳ15Ͳ20 Guy, SeeanswersbelowinBlueandtheattachedprocedure.Callmewithanyquestions. Sincerely, TedKramer SeniorOperationsEngineer HilcorpAlaskaLLC 907Ͳ777Ͳ8420(Office) 985Ͳ867Ͳ0665(cell) From:Schwartz,GuyL(CED)[mailto:guy.schwartz@alaska.gov] Sent:Wednesday,April22,20202:50PM To:TedKramer<tkramer@hilcorp.com> Cc:DonnaAmbruz<dambruz@hilcorp.com> Subject:[EXTERNAL]RE:NS1CementPullCoilandPerfOnly4Ͳ15Ͳ20 2 Ted, Thanksforthedetailedprocedure.Stillhaveaquestion. 1) Instep13..theyarenotpressuretestingthecoilconnectorinternallyaftersplicingontheVelstring.Iamnot suretheycanbutitisn’tlikeSLBnottopressuretestsomethingbeforePOOH.Iguesstheyareacutallytesting theconnectioninstep17whentheytestlubricatorto3000psi.??? Youarecorrect,theconnectionwillbetestedinstep#17. 2) Instep11thevelocitystringdoesn’thaveamechanicalbarrierinit.Sowhenyoupoplubricatoryouareopen toreservoirwithonlyKWF.Whatistheexpectedfluidgradientforwell.Whatareyouusingtokillwell.?? Thereisnomechanicalbarrierinthewellinstep11.Wedonotwantoneatthispointbecausewewillbepumping downthecoiltoplacethecement.SoyourstatementthatwewillbeopentothereservoirwithonlyKWFisintheory true.Butkeepinmindwhythevelocitystringisinthewell.Becausethewellwillnolongerliftitself.Wewillhave pumpedthe1.5timesthecoiltubingvolumeinstep#3. Inaddition,Wewillbeplacingsandinthe4Ͳ1/2”casingupto8,950’toactasabasetoplacethecementon.Eachof thesepumpingswilltellushowmuchpressureisonthecoilstringandonthebackside,aswellashowlongittakesfor pressuretocomeback(seeattachedpreͲwork).Thewayweplantodothatistobullheadthecorrectvolumeofsand downthecoilwithapumptruck.Iexpectthistotakemultiplepumpingsoveratwotothreedayperiodtogetthe correctamountofsandplacedinthewell.Wewillhaveaverygoodideahowlongwecankillthewellfor.Wealso haveaverygoodideahowlongourexposurewillbe. IhavediscussedwiththereservoirengineerthereservoirBHPoftheopenperforationsandweknowitis400psi.That yieldsagradientof0.06psi/ft.Wewillbepumpingproducedwatertodeliverthesandandtoclearthecoilstringwhich is0.44psi/ft. Additionally,Irealizeweneedtodiscussthebarrierissueineverywell.Igetthat.But,itisimportanttorecognizethat thereasonthatthereisavelocitystringinthiswelltobeginwithisthatitcannolongerliftacolumnofwatertosustain flow.Thereislittledoubtinmymindthatoncewepumpthewaterinthiswellitwillbedead.Notunlikewhenwe changeoutanesp.Wesimplymaintainawatercolumntokeepthewelldeadorheadingsouth. Areyoupermanentlypluggingthelowerperforations.? Wewillbepumpinglayingcementacrosstheexistingperforationsandcappingthemwith10’ofcementwiththe balancedplug.Theintentfordoingthatissowewillhaveahardbottomtoworkwithtoaddtheadditionalperforations uphole.OurReservoirdidnotwanttopermanentlyabandonthisinterval.Therefore,placingthecementandcement capisbeingdonesothattheoptionexiststodrilloutthecementwithcoilandreperfthisintervalisanoptionforusin thefuture.ThiswillallowHilcorptoproducethepotentiallyhigherproductivesandshigherinthestructure. GuySchwartz Sr.PetroleumEngineer AOGCC 907Ͳ301Ͳ4533cell 907Ͳ793Ͳ1226office CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Guy Schwartz at (907-793-1226 ) or (Guy.schwartz@alaska.gov). 3 From:TedKramer<tkramer@hilcorp.com> Sent:Wednesday,April22,20201:39PM To:Schwartz,GuyL(CED)<guy.schwartz@alaska.gov> Cc:DonnaAmbruz<dambruz@hilcorp.com> Subject:NS1CementPullCoilandPerfOnly4Ͳ15Ͳ20 Guy, AttachedistheCorrectedwriteupfortheNinilchikState#1wellshowingmoredetailonthecoiloperation.Changesare inred. Whatwewanttodoispumpsomesandfollowedbyabalancedcementplugacrossthecurrentperforationsinthis well.Afterthatisdone.Thewellshouldholdacolumnofwatersowecanpullonoutofthewellwiththevelocity string. PleaseletmeknowifthiswillsufficeorifIneedtoreͲsubmitthesundry. TedKramer SeniorOperationsEngineer HilcorpAlaskaLLC 907Ͳ777Ͳ8420(Office) 985Ͳ867Ͳ0665(cell) Marathon Jrit1RaTHON Alaska Production LLC August 12, 2010 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-404 Report of Sundry Well Operations Field: Ninilchik Unit Well: Ninilchik State #1 Dear Mr. Aubert: Marathon Alaska Production LLC Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~p s- 0 ~.3 --~-- :~~? AUK ~. ~ ~OiQ Attached for your records is the10-404 Report of Sundry Well Operations for NS-1 well. This report covers the work performed to install a velocity string to a setting depth of 8,940' MD. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10-404 Report of Sundry Well Operations cc: Houston Well File Well Schematic Kenai Well File Operations Summary KJS ~~~~~~ STATE OF ALASKA ~~lJ ~~ ~ ~ 20~SKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS ~i~sk~ bas Cec~, ~er~nission 1. Operations Aban L.f~Q Repair Well Plug Perforations Stimulate Other ~ Installed Performed: Alter Casing Pull Tubing ^ Perforate New Pool ^ Waiver^ Time Extension ^ Velocity String Change Approved Program ^ Operat. Shutdown ^ Perforate ^ Re-enter Suspended Well ^ 2.Operator 4. Well Class Before Work: Permit to Drill Number: Name: Marathon Alaska Production LLC Development ^~ Exploratory^ 205-023 3. Address: PO Box 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 ~, 50-133-20549-00-00 7. Property Designation (Lease Number): ~~ 8. Well Name and Number: ADL - 389180 ~ ~ ° i~ ° Id ~ Ninilchik State #1 9. Field/Pool(s): Ninilchik Unit / GO, Tyonek Undefined Gas 11. Present Well Condition Summary: Total Depth measured 10,346' feet Plugs (measured) NA feet true vertical 8,104' feet Junk (measured) NA feet Effective Depth measured 10,221' feet Packer (measured) 5,359' feet true vertical 7,g7g' feet (true vertical) 3,362' feet Casing Length Size MD TVD Burst Collapse Structural Conductor 66' 20" 87' 87' 3,060 psi 1,500 psi Surface 1,723' 9-5/8" 1,744' 1,478' 5,750 psi 3,090 psi Intermediate 5,533' 7" 5,554' 3,496' 7,240 psi 5,410 psi Production Liner 4,985' 4-1/2" 10,344' 8,102' 8,430 psi 7,500 psi Perforation depth: Measured depth: 8,720' - 8,956' True Vertical depth: 6,479' - 6,715' Tie-back 4-1/2" L-80 5,359' 3,362' TVD Tubing (size, grade, MD &TVD): Velocity String 1-3/4" HS-80 8,940' 6,699' TVD SSSV: - - MD - TVD Packers and SSSV (type, MD &TVD): Packers: Baker 4-1 /2" ZXP 5,359' MD 3,362' TVD 11. Stimulation or cement squeeze summary: Intervals treated (measured): A 1-3/4" velocity string was installed and set at 8,940' MD. Treatment descriptions including volumes used and final pressure: 12. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 2,465 1 6 - Subsequent to operation: 0 885 1 6 831 13. Attachments: 14. Well Class after work: `'~ Copies of Logs and Surveys Run Exploratory ^ Development Q Service ^ ~,, Daily Report of Well Operations X 15. Well Status after work: Oil Gas ~ WDSPL GSTOR ^ WAG ^ GINJ^ WINJ ^ SPLUG ^ 16. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 310-188 Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Representative ~ Signature S Phone (907) 283-1371 Date August 12, 2010 v RBDMS AU6 Z 7 ~ Form 10-404 Revised 7/2009 ~ 1 ~ g°i~r,ee Submit Original Only API #: Latitud 50-133-20549-00-00 es: ADL - 389180 ation: 169' (21' AGL) W 0.07.15722. EXP e: 60° 08' 20.168" N de: 151 ° 31' 22.095" W 222,422.643 2,245,904.532 3/12/2005 4/112005 rased: 12:00 hrs 4/9/2005 KOP @ 250' MD/TVD Build 4.0°/100' from 250'- 2,095' MD Hold 60° from 2,095' • 4,360' MD Drop 2°/100' to 7,990' MD Hold 2.3° from 7,990' to TD @ 10,346' MD Azimuth: 290.6 deg 5.930" ODI3.858" ID 8,430 psi burst / 7,500 psi collapse Baker Chemical Injection Nipple (Top) @ 2,382' MD M MARAi110M Conductor 20" K•55 133 ppf PE Tom Bottom MD 0' 87' TVD 0' 87' Surface Casing 9-5/8" L-80 40 ppf BTC Tom Bottom MD 0' 1,744' TVD 0' 1,478' 12-1/4" hole Cmt wl 390 sks (174 bbls) of 12.0 ppg of Type•1, 60 bbls cmt to surface Intermediate Casing 7" L-80 26 ppf BTC Tom Bottom MD 0' 5,554' TVD 0' 3,496' 8-112" hole Cmt w/ 233 sks (103 bbls) of 12.5 ppg Lead, & 175 sks (36.5 bbls) of 15.8 ppg Tail. Bumped plug, no cmt to surface, floats held ZXP Liner Packer with 15' Tieback Extension @ 5,359' MD (Top) Flex-Lock Liner Hanger @ 5,384' MD (Top) Marker Joints @ 7,241'-7,281' MD (Two 20' long) Marker Joints @ 8,821'-8,861' MD (Two 20' long) Landing Collar @ 10,244' MD (Top) Float Collar @ 10,278' MD (Top) Float Shoe @ 10,344' MD (Bottom) Liner 41/2" L-80 12.6 ppf Hydril 533 Tom Bottom MD 5,359' 10,344' TVD 3,362' 8,102' * 6-1/8" hole Cmt wl 455 sks (147 bbls) 13.5 ppg (No spacer or cement to surface) * Lost partial circulation after pumping 49 bbls displacement * Pollard Temp Log indicated TOC at 8,787' MD before Liner Top Squeeze * Squeezed Liner Top with 318 sks (103 bbls) 13.5 ppg cement (Flowed back 15 bbls cement after bleeding off 1000 psi final pressure) Tvonek Perfs: MD TVD Net Ft Gun Data Date 8,698'- 8,700' 6,457'- 6,459' 2 ft 3-318", 6 SPF Owen 7/15/05 8,720'- 8,743' 6,479'- 6,502' 23 ft 3-3/8", 6 SPF Owen 8/18/05 8,940'- 8,956' 6,699'- 6,715' 16 ft 3-318", 6 SPF Owen 12/27/06 Cement Squeeze Perfs: ~~a°~ ~ ~cn~ c c~~~ c c~°~ o a 3-3,/8" 9vven 6 SRP 7/21/2005 X200--x,202' ~858~;961' 2~t 3-3/8" 9vven 6 SRF 7/21/2005 Proposed Tvonek Perfs: 7,830'- 7,850' 5,589'- 5,609' 20 ft (2,631 psi @ 5609' TVD) 7,859'- 7,870' 5,618'- 5,629' 11 ft (2,640 psi @ 5629' TVD) Well Name & Number: Ninilchik State #1 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borou h State: Alaska Country: USA Perforations (MD): 8,698' - 8,956' Perf (TVD): 6,457' - 6,715' Angle @ KOP & Depth: ' 4° / 100 ft 250' MD Angle @Perfs: 1.8° Date Completed: 7/15/2005 Ground Level: AMSL RKB: 21' AGL Revised by: Kevin Skiba Revision Dater 8/12/2010 NS-1 Ninilchik Unit 924' FNL, 1,172' FWL Sec. 34, T1 N, R13W ~\ ~~~ Operations Summary Report by Job ~,ra^w~~+~o~ ®OiICo1'~1p8ny Well Name: NINILCHIK STATE 1 Qtr/Qtr, Block, Sec, Town, Range Field Name License No. State/Province Country 6034001N013W01 NINILCHIK NINILCHIK STATE ALASKA USA Daily Operations Report Date: 7/2/2010 Job Cate o WORKOVER 24 Hr Summary Pull Cap string from well. Displace string w/ MEOH. Ops , Trouble ----- Start Time End Time Dur hrs ' O s Code --~ ) ~ p ~ Actvity Cade Status Cade Comment -- -- __---' 09:00 10:00 1.00' SAFETY MTG Hold PJSM. Discuss alarms, muster area, and emergency response. Discussed operations, safety hazards around the well head, overhead hazards, working with man-lift. Obtained Safe Work Permit. 10:00 12:15 2.25 RURD COIL Spot equipment. Lay down liner around well head. RU truck. PU injector. Thread tag end of capillary string into injector. Attach cap string to spool. Carry injector to WH while "walking" injector up string. 12:15 12:45 0.50 TEST EQIP PT packoff to 3000 psi. Test good. 12:45 14:45 2.00 PULD EOIP Release Ratigun. PU coil w/ injector until we see a slight separation of the mechanical slips and packoff. Release mechanical slips. PU string and begin pulling to surface. 14:45 16:21 1.60 PULD EOIP BHA at surface. Close swab and upper master valves. Bleed tree. Remove packoff from tree. Bleed pressure from cap string. Remove BHA. 16:21 16:51 0.50 TEST TREE Install tree cap connection and PT to 1000 psi. Test good. 16:51 18:51 2.00 PUMP TRET Displace foamer from capillary string and displace w/ MEOH. 18:51 19:21 0.50 SECURE WELL Rack up equipment. Close all vavles on tree. Secure well head. Turn in permit and leave location. Lock gate. Notify operations that we have finished. Well shut in. Re ort Date: 7/6/2010 Job Cate o WORKOVER 24 Hr Summary Install V-string hanger. _ __ Ops Trouble ; ,.Start Time End Time Dur (hrs).. Ops Gode Activity Code Status Code. i Comment -- - - - - 07:30 08:30 1.00 SAFETY MTG - Hold PJSM. Discuss alarms, muster area, and emergency response. Discussed operations, safety hazards around the well head, overhead hazards, working with man-lift. Obtained Hot Work Permit. 08:30 09:00 0.50 SECURE WELL Install LO/TO on heater treater and flow line. 09:00 09:30 0.50 RURD PIPE Bleed flow lines. Remove instrument tubing and temp probe. 09:30 10:00 0.50 RURD OTHR RU Veto Gray and crane truck. Install lubricator. PT . Install Type H BPCV. 10:00 13:45 3.75 NUND WLHD Dismantle well head above bottom master valve. Install V-String hanger w/ annular flow tree, wing valve, and SSV. Re-install upper master valve, flow tee w/ wing valve and SSV, and swab valve and tree cap. 13:45 14:15 0.50 TEST WLHD PT new coil tubing hanger connections to 5K psi. Ten minute test. Test good. 14:15 14:45 0.50 RURD OTHR PU lubricator to retrieve BPCV. 14:45 16:00 1.25 SECURE WELL PT well cap to 1000 psi. Test good. Close all valves on tree. Blind open lines. All plugs and gauges installed. Turn in permit. Remove locks and leave loc. Re ort Date: 7/13/2010 Job Cate o WORKOVER 24 Hr Summary Run wireline Gauge Ring, PT Survey, prepare to turn over to install V string __ _ - - -- _ Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 14:30 15:00 0.50 SAFETY MTG AF Arrive Ninilchik State pad, sign in, spot equipment, hold PJSM -Topics discussed -review JSA's, assign jobs, slips, trips, falls, overhead loads, emergency numbers, emergency vehicle, review SWP, red lights for fire, blue lights for gas emission, sirens for audible, egress, muster area, buddy rule, three second rule. 15:00 16:30 1.50 RURD ELEC AF Rig up wireline truck, crane, manlift and lubricator. Pressure test lubricator to 2000#. Wellhead pressure is 1050 # 16:30 19:30 3.00 RUNPUL ELEC AF Run 3.6" OD gauge ring. Set down at 8990 feet MD. Wireline cable had not been in a well to this depth plus tight tolerances of grease tubes make for slow trip in hole. May not be a bridge in hole but rather close tolerances on wireline and grease tubes. 19:30 22:30 3.00 RUNPUL ELEC AF Run Pressure /Temp survey. Well head pressure 1065# at 61 deg. F. Fluid level at 8943' MD. Bottom hole pressure is 1266# @ 131.7 degree F. and depth of 9000 feet. Log back out of hole. 22:30 23:15 0.75 RURD ELEC AF Rig down wireline unit, crane truck and lubricator. Reinstall night cap. www.peloton.com Page 1/3 Report Printed: 8/11/2010 Maratfion Operations Summary Report by Job twaaarxor ~Oi1COmpan'y Well Name: NINILCHIK STATE 1 Casing Flange Elevation (ft) Ground Elevation (ft) KB-Casing Flange Distance (ft) KB-Ground Distance (ft) Spud Date Rig Release Date 0.00 148.00 169.00 21.00 3/12/2005 ----- --- ---- -- ' Cps'- Trouble Start Time End Time , Dur (hrs) ', Ops Code Activity Code Status Code Comment _ -- -- 23:15 23:30 0.25 SECURE WELL AF Secure wellhead, turn in work permit, sign out and leave location Daily Operations Report Date: 7/14/2010 Job Cate o WORKOVER 24 Hr Summary Moblize BJ coil unit, ASRC crane and vac truck, and Arctic Iron flowback equipment. RU BJ coil spread in preparation to run V-string. Set BOP's on WH. Test BOP's-250 psi low/ 4500 psi high. Test good. AOGCC notified for test Friday July 9 and again Monday July 12. Witness waived by Mr. Jim Regg July 13,2010 as per Kevin Skiba. Pig coil by pumping 22 bbls fresh water thru coil. Displace coil w/ N2. ---- - - Start Time End Time Dur (hrs) Ops Code p O s Activit Code i Status Trouble Code -- -- Comment 07:00 08:00 1.00 SAFETY MTG Hold PJSM. Discuss alarms- red flashing strobe for fire, blue flashing strobe for gas, wind direction, muster area, and emergency response. Discussed operations, safety hazards around the well head, overhead hazards, and working with man-lift. Obtained Safe Work Permit. 08:00 12:00 4.00 RURD COIL Lay down liners and drip pans. Spot equipment. Spot choke manifold and flow back tank. RU gas buster. RU hard lines. Remove Otis tree cap. PU BOP's. Set on Flow cross and hammer up. MU hydraulic control) lines on BOP. MU 2" hard line to flow cross. Carry BOP's to WH. N2 transport arrives. Begin transferring N2 into pump unit. PT flow back iron to 4500 psi. 12:00 13:00 1.00 TEST BOPE Function test BOP's- blinds, cutters, slips,and pipe rams. PT blinds 250 psi low/4500 psi high. Test good. Insert test bar. PT pipes 250 psi low/ 4500 psi high. AOGCC notified for test Friday July 9 and again Monday July 12. Witness waived by Mr. Jim Regg July 13,2010 as per Kevin Skiba. 13:00 14:30 1.50 PIG LINE Prep coil end. Install pig catcher. Carry injector to WH. Install pig in line. Pressure spool to 1000 psi. Open valve and launch pig. Begin pumping. Displace pig thru coil w/ 22 bbls water. Retrieve pig from catcher. Displace coil w/ 11,400 scf N2. Displacement complete. Equilize coil. 14:30 15:30 1.00 RURD COIL Stand back injector in cradle. Install night cap on WH. RD for the night. 15:30 15:45 0.25 SECURE WELL Secure well for the night. Turn well over to production to begin flowing well. Sign and turn in permit. Sign out and leave loc. Report Date: 7/15/2010 Job Cate o WO RKOVER 24 Hr Summary Rig up to run V string into hole, install equalizer flowline between velocity string and annulus, lubricator and injector head with BHA and 10 feet of straight bar. Ran Velocity string set at 8940' MD Aps Trouble I Start Ttme End Time Dur (hrs) Ops Code Activity Code , Status Code Comment 07:00 07:30 0.50' SAFETY MTG AF Arrive location, sign in, hold PJSM -Topics discussed - review JSA's, assign jobs, slips, trips, falls, overhead loads, emergency numbers, emergency vehicle, review SWP, red lights for fire, blue lights for gas emission, sirens for audible, egress, muster area, buddy rule, three second rule. 07:30 10:30 3.00 RURD COIL AF Install equalizer flowline between velocity string and annulus, install lubricator and injector head, break lubricator, install tubing connector, pull test to 25K -test successful, install BHA with rupture disk, set back onto BOP's, perform shell test -good. Ready to go into hole. 10:30 16:30 6.00 RUNPUL COIL AF Start in hole. Bottom hole assembly consists of 2.63" OD x 1.50" ID grapple connector that is .68 feet long. A 2.50" OD X 1.5" ID X 9.76 feet long straight bar. A 2.50" OD X 1.25" PXN (1.135" no-go) that is .73 feet. A 3.0" OD X 2.5" OD (1.50" ID top box X 2.0"ID bottom) wireline re-entry guide that is 1.99 feet long. On bottom is an aluminum expendable pump-off plug that is .12 feet long. This plug should be pumped off into the sump below the bottom of the tool. Set depth is 8940. Run into hole to 8960 feet MD. Pull up to 8925. Slide back down to 8940' MD. Pull up to 8925' MD. Lock BOP's, break lubricator, cut tubing, install hangers and spear, reconnect tubing and spear, re-connect lubricator, equalize pressure above hanger to annulus, release BOP's, slide tubing down to hanger. Set depth is 8940' MD. Pressure test velocity string hanger seals to 5000# -test successful. Pump N2 down tubing to burst aluminium disk in velocity string. Flow velocity string back to flowback tank. Prepare to secure wellhead for evening 16:30 17:00 0.50 RURD COIL AF Rig down lubricator, set back injector head onto cradle, install night cap onto BOP's. www.peloton.com Page 2/3 Report Printed: 8/11/2010 ~~~ Operations Summary Report by Job xtAanTxor ®OiICOmpa1'1y Well Name: NINILCHIK STATE 1 ~ Ops Trouble i Start Time End Time Dur (hrs) ~ Ops Code Activity Code Status Code Comment 17:00 17:30 0.50 SECURE WELL AF _ Secure wellhead, turn in work permit, sign out and leave location Daily Operations Report Date: 7/16/2010 Job Cate o WORKOVER 24 Hr Summary RD BJ Coil. _ _ - -- Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code I Gornment --- 08:00 08:30 0.50 SAFETY MTG AF - Arrive location, sign in, hold PJSM -Topics discussed -review JSA's, assign jobs, slips, trips, falls, overhead loads, emergency numbers, emergency vehicle, review SWP, red lights for fire, blue lights for gas emission, sirens for audible, egress, muster area, buddy rule, three second rule. 08:30 11:00 2.50 RURD COIL AF Rig down Coiled tubing unit, remove BOP'S from tree, re-install tree cap flange and night cap, pressure test cap and secure wellhead. www.peloton.com Page 313 Report Printed: 8/11/2010 • U Kevin J. Skiba Regulatory Compliance Representative Marathon Alaska Production LLC ~~~ ~~ P.O. Box 1949 Kenai, AK 99611-1949 Re: Ninilchik Field, Tyonek Undefined Gas Pool, Ninilchik State # 1 Sundry Number: 310-188 Dear Mr. Skiba: ~~ Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. Chair DATED this Z ~ day of June, 2010. Encl. Marathon lMARniHON Alaska Production LLC June 15, 2010 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 Reference: 10-403 Application for Sundry Approvals Field: Ninilchik Unit Well: Ninilchik State #1 Dear Mr. Aubert: MaratTion Alaska Production LLC Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 Submitted for your approval is the 10-403 Application for Sundry Approvals for NS-1 well. We propose to run a 1.75" velocity string, in NS-1, to a target setting depth of 8,940'. The Cook Inlet region experiences large swings in the seasonal gas production demands. Marathon proposes this well-work activity to help mitigate the negative affects experienced by the infiltrating water during the low demand season. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, ~,'~;~,g. s ~, Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10-403 Application for Sundry Approvals cc: AOGCC Current Well Schematic Houston Well File Proposed Well Schematic Kenai Well File Detailed Operations Program KJS STATE OF ALASKA `/'~'V~ s{a ~~%~'SC~ ALASK~ AND GAS CONSERVATION COMMISSI~ ~~ '~~ 6 ~~lO ~ ~ 6 ~~~ APPLICATION FOR SUNDRY APPROVALS ~ oL/t8l:.olo 20 AAC 25.280 1. Type of Request: Abandon ^ Plug for Redrill ^ Perforate New Pool ^ Repair well ^ Change approved program ^ Suspend ^ Plug Perforations ^ Perforate ^ Pull Tubing ^ Specify: Time Extension ^ Operational shutdown ^ Re-enter Susp. Well ^ Stimulate ^ Alter casing ^ Other: Install velocity string^ 2. Operator Name: Marathon Alaska Production LLC 4. Current Well Class: 5. Permit to Drill Number: Development ~ Exploratory ^ 205-023 - 3. Address: PO BOX 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20549-00- 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: ~ ^ Ninilchik State #1 Spacing Exception Required? Yes No 9. Property Designation (Lease Number): 10. Field/Pool(s): C10 "'r ,pµelL Uwd,l~ Gas (pj(7 L ADL - 389180 ~~'~,~0-S Ninilchik Unit /~yene k - 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 10,346' 8,104' 10,221' 7,979' NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 66' 20" 87' 87' 3,060 psi 1,500 psi Surface 1,723' 9-5/8" 1,744' 1,478' 5,750 psi 3,090 psi Intermediate 5,533' 7" 5,554' 3,496' 7,240 psi 5,410 psi Production Liner 4,985' 4-1/2" 10,344' 8,102' 8,430 psi 7,500 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 8,720' - 8,956' ~ 6,479' - 6,715' Tie-back 4-1/2" L-80 5,359' Packers and SSSV Type: SSSV: - Packers and SSSV MD (ft) and TVD (ft): - ~ Packers: Baker 4-1/2" ZXP 5,359' MD 3,362' TVD 12. Attachments: Description Summary of Proposal ^ 13. Well Class after proposed work: Detailed Operations Program ^~ BOP Sket ^ Exploratory ^ Development Q - Service ^ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: July 3, 10 Oil ^ Gas ^~ ~ WDSPL ^ Plugged ^ 16. Verbal Approval: Date: WINJ ^ GINJ ^ WAG ^ Abandoned ^ Commission Representative: GSTOR ^ SPLUG ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Representative Signature (907) 283-1371 Date June 15, 2010 I COMMISSION USE ONLY Number: ~' ~ ` (g Conditions of a roval: Notif Commission so that a re resentative ma witness Sund y ry pp p y Plug Integrity ^ BOP Test ~ Mechanical Integrity Test ^ Location Clearance ^ ' cc `'c G~~~ V G® Other: T e5~- ~O ~ C -~-0 ~{$~00 Lc. N ~11~~°~2010 ~1a$1t8 091 ~ X83 Gam. yCiTItr11S Subsequent Form Required: j ~ - C~ ~ T ~ r Anch~lr~l~e APPROVED BY : COMMISSIONER THE COMMISSION A roved b q Date: ~ f Z ( r pp y v RBDMS !UN 2 8 O R ~ G ~ N A L Form 10-403 Revised 12/2009 Submit in Duplicate r Ion M MARATHON MARATHON ALASKA PRODUCTION LLC ALASKA ASSET TEAM Ninilchik State #1 Ninilchik Unit Ninilchik State Pad Coiled Tubing Velocity String Hangoff Procedure WBS # W0.10.22279.CAP.001 APPROVALS: ~aune~ $et~coot 3/15/10 Program Writer ~lRi ~iV1;uP,~irz 6/2J2U~U Mickey Mullin ~. C. 1"6ele, 6/l4~lo Lyndon Ibele Latest Version Date: 6/1/10 Well Status: The well is producing 2.5 MMSCFD at 600 psi with around 2 BWPD. Well has 3/8" capillary string installed @ 8,872' MD. History: 11/06/08: Install 3/8" cap string to 8872' 08/22/08: PT and tag 10220' with 2.00" DD bailer 12/28/06: Perf 8940'-56' (2MM zone initially) (9.2 MM @ 1200 psi well at this point) 2005 psi after shot. 08/19/05: PerF 8720'-43' 08/13/05: PT 08/05/05: CT cleanout, KCL to bottom 08/02/05: Drill cmt and BP to 9598' 07/31/05: Drilled cmt to 8225'. Failed pressure test on squeeze 07/25/05: Cmt squeezed perfs 07/23/05: Spot 2 bbl cement on retainer 07/22/05: GR 3.75" to 8238', set cmt retainer 8135' 07/22/05: Perf cmt sq zone 8200'-8202', 7758'-7760' 07/22/05: Set BP at 8238' 07/16/05: Perf cmt sq zone 8698'-8700', could not inject cement 07/16/05: GR 3.75" set BP at 8730' 05/10/05: CBL 05/05/05: GR 3.80' to 10244' 04/10/05: Drilled Well. Coiled Tubing Velocity String Hangoff Procedure 6/1 /2010 -1- • Objectives: Install a 1.75" CT v-string at bottom perforation. This allows for +/- 1.4 BCF expected incremental recovery, reduced rates for summer curtailment, and ability to run well (and pad) without compression. Resources: BJ Dynacoil to pull capillary string Coiled tubing set up with pump and N2 pump Approx 9200' of 1.75" CT Arctic Iron choke, gas buster, tank set up Manlift / 2 Light plants Vetco Crew for wellhead modifications/hangoff Procedure: A. Pull Capillary String Current capstring Set Depth: Max OD of BHA: Min ID of 3.5" tubing: 8872' (6631' TVD) 2.25" FCV 3.858" (chemical injection nipple) Disconnect power to wellhouse (call electrician). MI manlift & lightplants. MI crane, Remove wellhouse. On truck: Empty spool. Paperwork: WBD, Work Permit, Well Ops transfer sheet. 1. Ensure pumps are off and pressure has been safely bled from the CICM side of the tubing prior to job. 2. Disconnect tubing at manifold. Catch any foamer to absorbent. 3. Bleed pressure from the Dyna-Coil using the needle valve. Catch any foamer to absorbent. 4. MIRU BJ Dyna-Coil unit. Place liner around wellhead/truck. Set outriggers & ground. Flag off location. Record well flowrate /pressure. 5. P/U spool and mount on truck. 6. Break injector head and insert 3/8"coil into injector chains. 7. P/U Dyna-Coil injector with crane. 8. Lower injector head carefully on to the pack-off (line up slot with the pack-off's '/" x 4" nipple). 9. Attach hydraulic hoses to hydraulic rams and check pressure (should be 3000 psi). 10. Pressure hydraulic rams (top seal, '/" nipple) on pack-off to 2000 psi. 11.Open Rattiguns all the way. Watch for pressure leaks. 12.Open slips. Monitor weight indicator to ensure injector is holding weight. 13. Insert snubbing guides. 14. Wrap wellhead and packoff with absorbents to catch drips. Clear wellhead. Coiled Tubing Velocity String Hangoff Procedure 6/1/2010 -2- • • 15. Set depth counter to 8872'. POOH several hundred feet (call if pulling over 4000#) run back and attempt to tag bottom. Record tag depth 16. Pull capillary string out of well. Bleed pressure off capillary string making sure to use absorbents to capture any injection fluid that may leak out. 17. Shut swab valve below capillary string. 18. Lift injector head off and away from well. 19. Replace extension on wellhead with tree cap. Pressure test cap. 20. Rig down BJ Dynacoil unit. RDMO. Clean up site. Sign-out and turn in work permit. B. Install Coiled Tubing Head Talk to construction and make arrangements to complete instrumentation, electrical, logic, and FCO to minimize shut-in time. Shut in well. Vetco to set 4" Cameron Type-H BPV. Close bottom master. Bleed off pressure and check for flow. Remove top master and install new Vetco 4-1/16 5M CT Head with 2-1/16" 5M side outlet. Install 2-1/16" gate valve and SSV to side outlet on coil tubing head. Reinstall and test (with diesel) top master and swab valve. Make final measurements to install flowline to CT Head outlet. Pull BPV. C, F/owline modif!cations for coil tubing string Hand over well to construction to modify flowline and install v-string flowline and choke. Make sure velocity string flowline has dedicated gas metering (IPR indicates appreciable rate gain for flowing up annulus). After complete, return well to production. D. MIRU MOC flowback equipment This includes open-top flowback tank, choke skid, gas buster, and flowback iron. Spot flowback tank close enough to run CT into tank for pigging. MIRU closed- top 500 bbl fluid supply tank. Lay liner and berm area around tank. Load fluid supply tank with 6% KCI. E. Hang Off 1,75" CT 1. MIRU BJ coiled tubing unit. Verify 24 hour notification has been made to ~ AOGCC for BOP test. Rig up fluid and N2 pumps. RU pumping iron (BJ) and flow back iron (MOC). RU equalizing hose from BOP to top of lubricator. 2. Pig CT. Run end of CT with pig catcher made up into flowback tank. Pump 5 bbls water, cleaning pig, and coil displacement +10% behind pig. Coiled Tubing Velocity String Hangoff Procedure 6/1 /2010 -3- • 3. Nipple up BJ CT wellhead assembly (WHA). Current WHA is 4-1/16" 5M swab/cap. WHA to include 4-1/16" - 5M X 4-1/16" - 10M DSA, 4-1/16" - 10M X 5' Flanged Riser, 4-1/16" - 10M flow cross and 4-1/16" - 10M Dual-Combi BOP (dressed for 1-3/4" CT). Function test BOP. Stab 1-3/4" CT into injector. Have BJ coil tubing connector welded on prior to job off location and pull test to 15,000 lbs. Nipple up injector to WHA. 4. Perform complete BOP test and complete AOGCC BOP test form dated 01/25/2010). Pressure test pump iron (200 Ic Pump fluid to load CT. Pressure test CT, WHA and flow manifold (200/4500 psi). Pressure test BOP rams (200/ pressure test fluids w/ N2 to flowback tank and vent N2 p (Correct ~OO~high psi). °i~on to choke psi). Purge ire to flowback tank. Note BOP test witness or waiver in WeIlView, including details. 5. MU CT BHA. Nipple injector off WHA. PU 10' of 4-1/16" CQ lubricator. MU velocity string BHA to end of CT. BHA to include: a. 2.50" OD X 1.50" ID CT grapple connector, b. 2.50" OD X 1.50" ID X 10' long box x box straight bar, c. 1.91" OD X 1.25" PXN (1.135" no-go) pin x pin, d. 2.50" OD x 2.50" OD (1.50" ID top box x 2.0" ID bottom) wireline re-entry guide with 2.0 OD" x 2.50" OD O-ring sealed aluminum pump-off plug. Strap and record velocity string BHA dimensions and lengths. Include record in WeIlView and on updated WBD. 6. Nipple up infector to WHA. Pressure test WHA using CT kill line (200/1500 psi). Bleed WHP to flow back tank. Prior to next Step, ensure that flowback line from WHA through choke manifold to gas buster is ready and available to keep TP at or below 1500 psi while RIH to eliminate possible CT collapse. This would serve as a backup if flow through the production flow line was unexpectedly curtailed or ceased. 7. RIH with coil tubing velocity string and BHA with well flowing to sales up annulus (running v-strings into shut in wells has been very unsuccessful). 8. Cut coil tubing. POH to span WHA for final landing depth, 8940'. Set CT in BOP tubing/slip rams. Lock tubing/slip rams. Slack off injector chain traction and roll chains to verify slips are set. Release WHP above tubing rams to the flowback tank. Nipple injector off of WHA. Walk injector up CT. Install C plate above BOP and polish rod clamp on CT. Cut CT above BOP high enough to allow Vetco to install CT connector and hanger mandrel assembly. Coiled Tubing Velocity String Hangoff Procedure 6/1 /2010 -4- • • 9. MU Vetco Coil Tubing Hanger and Weatherford Hydraulic Release GS Running Tool. (Only hand file outside of CT above BOP. NO HOT WORK PERMIT REQUIRED). GS running tool should be plugged to release on pressure, not rate. Swing Injector and lubricator away from WH. Vetco to connect VGCT Coil Tubing Hanger (4" Nom C/W 3" Weatherford Fishneck with 2-3/8" 8rd Box and 2" BPV) to hanging coil tubing with coil grapple. While Vetco is making up CT hanger, BJ CoilTech to connect Weatherford GS tool string assembly to coil on reel trailer. Dimple-on a 1-3/4" CT connector. Pull test CT connector (25,000 lbs.) using 1.125" 10SA box X 1- 1/2" MT pin crossover and 1-1/2" MT box pull plate. Tool string will consist of 1-3/4" slimline dimple-on, 1-3/4" DF check valve, 1.125' 10SA box X 1-1 /2" MT pin X-over and a plugged 3" GS spear. PU or lay down 4" lubricator as needed to cover GS tool string and Vetco CT hanger. 10. Latch G,gspear to Vetco mandrel after PU injector. Remove polish rod clamp and C-plate from top of BOP. Accurately measure from hanger assembly to CT lock down screws. Walk injector down CT and nipple injector/lubricator to top of BOP. Pull test CT mandrel connection/GS spear assembly to CT string weight plus 5,000 lbs. Slack off weight to CT string weight. Measure and mark the exact distance that the CT has to move down to align the hanger. Make all measurements on the gooseneck with all rollers locked. Equalize WHP across tubing rams. Unlock tubing/slip rams. Open BOP tubing/slip rams. 11. RIH and land Vetco CT hanger per Vetco procedures. (Stop hanger 1' high and run lower lockdown screws to their landing position. Lower hanger onto the lockdown screws and then lock upper screws. Verify string and hanger are landed and secured per Vetco procedures. Slack off string weight to neutral. Tighten lock screws. Pressure test hanger between O-rings to 5000 psig with hand pump pressure test unit (Vetco Supplied). 12. Release GS Running Tool. Start pumping 6% KCL water or N2 to pressure up CT to release G~'spear. Set down weight and then pick GS off of hanger 13. RD and release CT. RD equipment, clean location, and turn in work permit. F. Pressure Up and Blow Pump-Off Plug Shut in sales and allow WHP pressure to build up to 1100 psi. Jumper gas from annulus to coil tubing until CT WHP is 1100 psi. While leaving CT shut in, open annulus to sales. The differential pressure between the coil tubing and annulus should blow off the pump out plug. If the situation dictates, pump off plug with N2. Coiled Tubing Velocity String Hangoff Procedure 6/1 /2010 -5- • • G. Flow Test Well to Sales No more than a 60%drawdown with methane gas in wellbore is permitted for the lowest open interval. Obtain stabilized flow within the 60%drawdown limit. The unloading rate up 4-1/2" casing and 1.75" coil tubing in a vertical well is 4.0 MMCFPD and 638 MCFPD, respectively, at 800 psig FCP. Flow well to sales observing recommended drawdown rates. H. Complete Well Ops Transfer Sheet and distribute. WBD LINK NS 01 PT 08-21-08 F.xls Considerations, Instructions, and Planning: A pre-meeting with the construction group is required. Talk to construction and make arrangements to complete instrumentation, electrical, logic, and FCO to minimize shut-in time. V-string candidates don't normally like shut-ins, and having a "rush" job adds considerably to the cost of the tree work. A hot work permit is necessary for grinding the top of the CT above the BOP to allow installation of the dimple on connector when the v-string is pulled. This permit requires special approval and must be obtained before the job. When running the v-string, only allow hand filing of the outside of the CT above the tree to avoid the necessity of the hot work permit. Hand filing the outside is sufficient to install the external connector. Pigging the coil is a good practice generally and required if we are running used pipe from BJ. If you pig the CT stabbed onto the well you will fill the tree with rust and create problems. Make sure that everyone plans to pig directly into the tank to keep the debris away from the tree. The critical point in the job is spacing out to hang off the CT. If the space out and procedure is not correct the CT or hanger can easily be damaged causing significant extra time and money. Organize a job meeting before the injector is walked back down to the BOP to ensure everything is measured and correct. There are 2 kinds of CT hangers in the field. The new style hanger has seals that are energized by the lockdown screws. The old style hanger has o-rings and is a larger OD. If an old style hanger is pulled from the well it should be discarded and replaced with the new style. A third hanger is in final design as of Sept-09. This design has shear screws to stop from prematurely energizing the seal while running through the lubricator or tree. Coiled Tubing Velocity String Hangoff Procedure 6/1/2010 -6- • It is necessary to use straight bars to align the hanger and GS. Use a 6' straight bar between the CT connector and the hanger and above the GS spear use 2 large centralizers separated with a 2' - 3' straight bar. If running a 4" hanger in 4-1/16" lubricator (or 3" in 3-1/8") it is necessary to install a pump in sub at the top of the lubricator and connect a hose from the top pump- in sub to the BOP to equalize around the hanger. Differential across the hanger can energize the seals and then they will be damaged running the hanger through the lubricator. Vetco is redesigning the 4" hanger to severely reduce this possibility (in final design stage in Sept09). It is safer to latch the hanger with the GS after the lubricator is reconnected to avoid walking the injector down the pipe. Either method works but with the straight bar below the hanger and the double centralizers above the GS it is easy to latch inside the lubricator. When running the 3" hanger latching the GS inside the lubricator is not an option unless you have 3-1/8" lubricator and an equalizing system. Coiled Tubing Velocity String Hangoff Procedure 6/1/2010 -7- API #: 50-133-20549-00-00 Prop. Des: ADL - 389180 KB elevation: 169' (21' AGL) WBS #: W0.07.15722.EXP Latitude: 60° O8' 20.168" N Longitude: 151 ° 31' 22.095" W X: 222,422.643 Y: 2,245,904.532 Spud: 3/12/2005 TD: 4/1 /2005 Rig Released: KOP @ 250' MD/TVD Build 4.0°I100' from 250'- 2,095' MD Hold 60° from 2,095' - 4,360' MD Drop 2°/100' to 7,990' MD Hold 2.3° from 7,990' to TD @ 10,346' MD Azimuth: 290.6 deg Ninilchik State #1 Ninilchik Unit 924' FNL, 1,172' FWL Sec. 34, T1 N, R13W M ~ar~n~oN 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 1,744' TVD 0' 1,478' 12-1/4" hole Cmt w/ 390 sks (174 bbls) of 12.0 ppg, 60 bbls cmt to surface Conductor 20" K-55 133 ppf PE Top Bottom M D 0' 87' rvD o• sr Intermediate Casing 7" L-80 26 ppf BTC Top Bottom MD 0' 5,554' rvD 0' 3,496' ig String - 4.5", 12.6#, L-80, Buttress Mod ~g String - 4.5", 12.6#, L-80, Hydril 533 r Chemical Injection Nipple @ 2382' MD (Top) 5.930" OD/3.858" ID 8430 psi bursU7500 psi collapse Liner Packer with 15' Tieback Extension @ 5359' MD (Top) Lock Liner Hanger @ 5384' MD (Top) er Joints @ 7241'-7281' MD (Two 20' long) er Joints @ 8821'-8861' MD (Two 20' long) ing Collar @ 10,244' MD (Top) Collar @ 10,278' MD (Top) Shoe @ 10,344' MD (Bottom) 3/8" 2205 Stainless Steel Top Bottom MD 0' 8,872' TVD 0' 6,631' Radial Bond Log aged SCMT/GR/CCL from 10221'-5150' with 1600 psi WHP ~d bond from 10,221' - 8,800` KB bond between 8,800' - 7,360` KB ~radic bond between 7,360' - 5,554' KB ~d bond between 5,554' - 5,400' KB 8-1/2" hole Cmt w/ 233 sks (103 bbls) of 12.5 ppg Lead, & 175 sks (36.5 bbls) of 15.8 ppg Tail Bumped plug, no cmt to surface, floats held Liner 4-1/2" L-80 12.6 ppf Hydril 533 Top Bottom MD 5,359' 10,344' TVD 3,362' 8,102' 6-118" hole Cmt wl 455 sks 13.5 ppg (No spacer or cement to surface) ` Lost partial circulation after pumping 49 bbls displacement `Pollard Temp Log indicated TOC at 8,787' MD before Liner Top Squeeze `Squeezed Liner Top with 318 sks 13.5 ppg cement (Flowed back 15 bbls cement after bleeding off 1000 psi final pressure) Tvonek Perfs: MD TVD Net Ft Gun Data Date 8,720'-8,743' 6,479'- 6,502' 23 ft 3-3/8", 6 SPF Owen 8/18/2005 8,940'-8,956' 6,699'- 6,715' 16 ft 3-3/8", 6 SPF Owen 12/27/2006 Cement Squeeze Perfs: TD PBTD 10,346' MD 10,221' MD 8,104' TVD 7,979' TVD Well Name & Number: Ninilchik State #1 Lease: Ninilchik Unit County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 8,720' - 8,956' Perforation (TVD): 6,479' - 6,715' Angle KOP and Depth: ' 4° 1100 ft @ 250' MD A le/Perfs: Dated Completed: Completion Fluid: Revised by: Nancy Henry Last Revison Date: 9/28/2009 PROPOSED Ninilchik State #1 Ninilchik Unit 924' FNL, 1,172' FWL Sec. 34, T1 N, R13W M MA~u-n~oM API #: 50-133-20549-00-00 Prop. Des: ADL - 389180 KB elevation: 169' (21' AGL) WBS #: W0.07.15722.EXP Latitude: 60° 08' 20.168" N Longitude: 151 ° 31' 22.095" W X: 222,422.643 Y: 2,245,904.532 Spud: 3/12/2005 TD: 4/1 /2005 Rig Released: KOP @ 250' MD/TVD Build 4.0°/100' from 250'- 2,095' MD Hold 60° from 2,095' - 4,360' MD Drop 2°/100' to 7,990' MD Hold 2.3° from 7,990' to TD @ 10,346' MD Azimuth: 290.6 deg ng String - 4.5", 12.6#, L-80, Hydril 533 r Chemical Injection Nipple @ 2382' MD (Top) 5.930" OD/3.858" ID 8430 psi burst/7500 psi collapse Liner Packer with 15' Tieback Extension @ 5359' MD (Top) Lock Liner Hanger @ 5384' MD (Top) er Joints @ 7241'-7281' MD (Two 20' long) er Joints @ 8821'-8861' MD (Two 20' long) ing Collar @ 10,244' MD (Top) Collar @ 10,278' MD (Top) Shoe @ 10,344' MD (Bottom) is ~ ~ '1 Tvonek Perfs: MD TVD Net Ft Gun Data Date 8,720'-8,743' 6,479'- 6,502' 23 ft 3-3/8", 6 SPF Owen 8/18/2005 8,940'-8,956' 6,699'- 6,715' 16 ft 3-3/8", 6 SPF Owen 12/27/2006 Cement Squeeze Perfs: ce• ~ ~ n• c + c c~o• 2-ft ~ ~~e•• n c co -9a`9' c mac" 2~t 202' ra -X200-0- ~ sin•• n c , , Proposed Tvonek Perfs: 7,830'- 7,850' 5,589'- 5,609' 20 ft (2,631 psi @ 5609' TVD) 7,859'- 7,870' S 618'- 5 629' 11 ft (2 640 psi @ 5629' TVD) it Top at 8800' Radial Bond Log Iged SCMT/GR/CCL from 10221'-5150' with 1600 psi WHP ~d bond from 10,221' - 8,800` KB bond between 8,800' - 7,360' KB ~radic bond between 7,360' - 5,554` KB ~d bond between 5,554' - 5,400' KB Conductor 20" K-55 133 ppf PE Top Bottom M D 0' 87' TVD 0' 87' 9-518" L-80 40 ppf BTC Top Bottom MD 0' 1,744' TVD 0' 1,478' 12-1/4" hole Cmt wl 390 sks (174 bbls) of 12.0 ppg, 60 bbls cmt to surface Interme diate Casing 7" L-80 26 ppf BTC Top Bottom MD 0' 5,554' TVD 0' 3,496' 8-1/2" hole Cmt w/ 233 sks (103 bbls) of 12.5 ppg Lead, 8. 175 sks (36.5 bbls) of 15.8 ppg Tail Bumped plug, no cmt to surface, floats held 4-112" L-80 12.6 ppf Hydril 533 Top Bottom MD 5,359' 10,344' TVD 3,362' 8,102' * 6-1/8" hole Cmt w/ 455 sks 13.5 ppg (No spacer or cement to surface) * Lost partial circulation after pumping 49 bbls displacement * Pollard Temp Log indicated TOC at 8,787' MD before Liner Top Squeeze * Squeezed Liner Top with 318 sks 13.5 ppg cement (Flowed back 15 bbls cement after bleeding off 1000 psi final pressure) TD PBTD 10,346' MD 10,221' MD 8,104' TVD 7,979' TVD Velocity String (installed xx/xx/xx) 1.75" 0.125" wall 1.50" ID T~ Bottom M D 0' 8940' TVD 0' ' 2.50" OD X 1 0' pt c~ 2. D X 1.50" IDX10'lo ~ t tb r DX1.25"PXN (1.135" no i i " 0 x 2.50" OD (1.50" ID top box x 2.0" b ) reline re-entry guide Well Name & Number: Ninilchik State #1 Lease: Ninilchik Unit County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 8,720' - 8,956' Perforation (TVD): 6,479' - 6,715' A le KOP and Depth: - 4° / 100 ft @ 250' MD Angle/Perfs: Dated Completed: Completion Fluid: Revised by: Last Revison Date: M Marathon MARATHON OII Company November 12, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7'h Ave Anchorage, Alaska 99501 Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~pS-D~-3 Reference: 10-404 Report of Sundry Well Operations Field: Ninilchik Unit Well: Ninilchik State #1 ~~9~~ ~IO`~ ~ ~ 200 Dear Mr. Maunder: Attached for your records is the Report of Sundry Well Operations, 10-404, for NS-1 well. This report covers the work performed to run a 3/8" capillary string to mitigate water loading. The capillary string was installed on 11-05-08 and set at a depth of 8872'. All work was completed under Sundry #308-339. NS-1 is presently flowing at 4,035 mcf at 783 psi. Please call me at (907) 283-1371 if you have any questions or need additional information. Sincerely, ` ~ l ..~ Kevin J. Skiba Engineering Technician Enclosures: 10-404 Report of Sundry Well Operations cc: Houston Well File Operations Summary Kenai Well File Current Well Schematic KJS STATE OF ALASKA ~ ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon Repair Well Plug Perforations Stimulate Other ~ ~ Install Capillary Performed: Alter Casing ^ Pull Tubing^ Perforate New Pool ^ Waiver^ Time Extension^ String , Change Approved Program ^ Operat. Shutdown^ Perforate ^ Re-enter Suspended Well^ 2.Operator Marathon Oil Company N 4. Well Class Before Work: 5. Permit to Drill Number: ame: Development ~ - Exploratory^ 205-023 3. Address: p0 BOX 1949 Stratigraphic^ Service^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20549-00-00 7. KB Elevation (ft): 9. Well Name and Number: 169' (21' AGL) - Ninilchik State #1 - 8. Property Designation: 10. Field/Pool(s): ~QL03 G(S ADL - 389180. ~ Ninilchik Unit / T onek Formation 11. Present Well Condition Summary: Total Depth measured 10,346' feet Plugs (measured) NA true vertical 8,104' feet Junk (measured) NA Effective Depth measured 10,221' " feet true vertical 7,979' , feet Casing Length Size MD TVD Burst Collapse Structural Conductor 66' 20" 87' 87' 3,060 psi 1,500 psi Surface 1,723' 9-5/8" 1,744' 1,478' 5,750 psi 3,090 psi Intermediate 5,533' 7" 5,554' 3,496' 7,240 psi 5,410 psi Production Liner 4,985' 4-1/2" 10,344' 8,102' 8,430 psi 7,500 psi Perforation depth: Measured depth: 8,720' - 8,956' True Vertical depth: 6,479' - 6,715' Capillary String 3/8" 2205 Stainless Steel 8,872' Tubing: (size, grade, & MD) Production Tubing 4-1/2" L-80 5,359' Packers and SSSV (type. and measured depth) Baker 4-1 /2" ZXP Liner Packer 5,359' MD (Top) 12. Stimulation or cement squeeze summary: intervals treated (measured): Installed 318" Capillary String to a setting depth of 8,872'. Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 3,900 1,8 88 794 Subsequent to operation: 0 4,035 -- 97 783 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development ~ ' Service ^ Daily Report of Well Operations X 16. Well Status after work: Oil^ Gas ^~ ~ WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 308-339 Contact Kevin Skiba (907) 283-1371 Printed Name Kevin Skiba Title Engineering Technician Signature Phone (907) 283-1371 Date November 12, 2008 Form 10-404 Revised 04/2006 Submit Original Only Marathon operations Summary Report ~wran~o~ .Qil COrtlpA~ty Well Name: NINILCHIK STATE 1 Daiy Operations Report Date: 1116!2008 Job Category. R&M MAINTENANCE 2l MrS~mmary MIRU BJ Dyna-Coil to run 318" capillary string to 8872'. ST3rtTlne Ertl7lne Drr 0 COtl! A~CW Cotle opa Slaba Tro~DkCOtle Canme~t 08:00 08:42 0.70 SAFETY MTG AF Hold PJSM. Discuss alarms, muster area, and emergency response. Discussed operations, safety hazards around the well head, cold work hazards overhead hazards workin with man-lift. Obtained work ermit. 08:42 09:12 0.50 RURD COIL AF Electrician tags out power to well house and removes cords. Remove well house. 09:12 09:27 0.25 RURD COIL AF Bleed tree cap and install tree cap adapter. 09:27 09:57 0.50 RK COIL AF RU injector and stab coil. Set BHA to 3500 psi. Pull test BHA to 900 lbs. 09:57 10:33 0.60 RK COIL AF Carry injector to well head. MU pack-off into tree cap adapter. PTest tree cap connections to 3000 psi. Good test. 10:33 12:18 1.75 RUNPUL COIL AF RIH wl 2-318" coil and BHA to 8872'. 12:18 13:03 0.75 INSTAL SEQP AF Land coil @8872'. Install mechanical slips to land coil. Set hydraulic pack-off ~ 3000 psi. and set Rattigon. Reel off additional 60' of coil and cut. 13:03 13:33 0.50 SECURE LL AF Set well house over weN head. Secure well head. Electrician restores power to WH and foamer skid. 13:33 16:33 3.00 PUMP TRET AF RU pump on coil unit to fill Dyna-Coil wt foamer. 16:33 16:48 0.25 SECURE LL AF Secure wellhead and location. RD equipment. Sign out and leave loc. www.peloton.com Report Printed: 11 M 1 J2008 Prob. Des: ADL - 389180 KB elevation: 169' (21' AGL) WBS #: W0.07.15722.EXP Latitude: 60° 08' 20.168" N Longitude: 151° 31' 22.095" W X: 222,422.643 Y: 2,245,904.532 Spud: 3/12/2005 TD: 4/1 /2005 KOP @ 250' MD/TVD Build 4.0°/100' from 250'- 2,095' MD Hold 60° from 2,095' - 4,360' MD Drop 2°/100' to 7,990' MD Hold 2.3° from 7,990' to TD @ 10,346' M D Azimuth: 290.6 deg Ninilchik State #1 Ninilchik Unit 924' FNL, 1,172' FWL Sec_ 34, T1 N, R13W Ma~-rnoN Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 87' TVD 0' 87' 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 1,744' TVD 0' 1,478' 12-114" hole Cmt w/ 390 sks (174 bbls) of 12.0 ppg, 60 bbls cmt to surface 7" L-80 26 ppf BTC Top Bottom MD 0' 5,554' rvD o' 3,ass' 8-1/2" hole Cmt wl 233 sks (103 bbls) of 12.5 ppg Lead, 8 175 sks (36.5 bbls) of 15.8 ppg Tail Bumped plug, no cmt to surface, floats held ..y ,,....y - ~. ~. - ..,,, ~~„ ,.,.... ng String - 4.5", 12.6#, L-80, Hydril 533 ~r Chemical Injection Nipple @ 2382' MD (Top) 5.930" OD13.858" ID 8430 psi burst/7500 psi collapse Liner Packer with 15' Tieback Extension @ 5359' MD (Top) Lock Liner Hanger @ 5384' MD (Top) er Joints @ 7241'-7281' MD (Two 20' long) er Joints @ 8821'-8861' MD (Two 20' lorg) ing Collar @ 10,244' MD (Top) Collar @ 10,278' MD (Top) Store @ 10,344' MD (Bottom) 3/8" 2205 Stainless Steel Top Bottom MD 0' 8,872' TVD 0' 6,631' Log Iged SCMT/GR/CCL from 10221'-5150' with 1600 psi WHP >d bond from 10,221' - 8,800' KB bond between 8,800' - 7,360' KB >radic bond between 7,360' - 5,554' KB ~d bond between 5,554' - 5,400' KB Liner 4-112" L-80 12.6 ppf Hydril 533 Top Bottom MD 5,359' 10,344' rvD 3,362' 8,102' ' 6-118" hole Cmt wl 455 sks 13.5 ppg (NO spacer or cement to surface) ' Lost partial circulation after pumping 49 bbls displacement ' Pollard Temp Log indicated TOC at 8,787' MD before Liner Top Squeeze ' Squeezed Liner Top with 318 sks 13.5 ppg cement (Flowed back 15 bbls cement after bleeding off 1000 psi final pressure) z.st ~• ._'_. TvonekrPerfs: MD TVD Net Ft Gun Data Date 8,720'-8,743' 6,479'- 6,502' 23 ft 3-3/8", 6 SPF Owen 8/1812005 8,940'-8,956' 6,699'- 6,715' 16 ft 3-3/8", 6 SPF Owen 1212712006 Cement Squeeze Perfs: Proposed Tvonek Perfs: 7,830'- 7,850' 5,589'• 5,609' 20 ft (2,631 psi @ 5609' TVD) 7,859'- 7,870' 5,618'- 5,629' 11 ft (2,640 psi @ 5629' TVD) .. , ,a. x~~~ .'" 1a. TD PBTD 10,346' MD 10,221' MD 8,104' TVD 7,979' TVD Well Name 8 Number: Ninilchik State #1 Lease: Ninilchik Unit County or Parish: Kenai Peninsula Borou h State: Alaska Count USA Perforations (MD): 8,720' - 6,956' Perforation (TVD): 6,479' - 6,715' A le KOP and De the - 4° / 700 ft 250' MD A le/Perfs: Dated Completed: Completion Fluid: Revised by: Mike Sulley Last Revison Date: 11/6/2008 • -~ SARAH PALlN, GOVERNOR ALASSA OII. A1~D GA5 333 W. 7th AVENUE. SUITE 100 CO1~T5ERQAZ'IO1~T COMr-II55IOrIT ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907)276-7542 Kevin Skiba Engineering Technician Marathon Oil Company t ~~j~~ ~~~~ PO Box 1949 ~ C Q ~"~ Kenai AK 99611-1949 - ~ ©u Re: Ninilchik Unit, Tyonek Undefined Gas Pool, Ninilchik State # 1 Sundry Number: 308-339 Dear Mr. Skiba: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided iri AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. Chair DATED this?`sday of September, 2008 Encl. STATE OF ALASKA ALA OIL AND GAS CONSERVATION COM~ION APPLICATION FOR SUNDRY APPROVALS ~n aa~ ~~ ~Rn _ ~..,,. 9.~ o0 ~~ fsb N 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown^ Perforate Waiver ^ Other Q Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension ^ Install Capillary Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ String 2. Operator Name: Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: ' Development a _ Exploratory ^ 205-023 3. Address: PO BOx 1949 Stratigraphic ^ Service ^ 6: API Number: Kenai Alaska, 99611-1949 50-133-20549-00-00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: ^ Q NinilChik State #1 - Spacing Exception Required? Yes 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): ADL - 389180 ~QCO.J'B'4~SOS 169' (21' AGL) ~ Ninilchik Unit / Tyonek Formation 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 10,346' 8,104' 10,221' ~ 7,979' - NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 66' 20" 87' 87' 3,060 psi 1,500 psi Surface 1,723' 9-5/8" 1,744' 1,478' 5,750 psi 3,090 psi Intermediate 5,533' 7" 5,554' 3,496' 7,240 psi 5,410 psi Production Liner 4,985' 4-1/2" 10,344' 8,102' 8,430 psi 7,500 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 8,720' - 8,956' 6,479' - 6,715' 4-1/2" L-80 5,359' Packers and SSSV Type: Packers and SSSV MD (ft): Baker 4-1 /2" ZXP Liner Packer 5,359' MD (Top) 13. Attachments: Description Summary of Proposal ^ 14. Well Class after proposed work: Detailed Operations Program Q BOP Sketch ^ Exploratory ^ Development 0 - Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: August 4, 2008 Oil ^ Gas Q ~ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Engineering Technician Signature Phone (907) 283-1371 Date September 19, 2008 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~ ~~ 33~ Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other: Subsequent Form Required: "'i~ APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: ~~LJ Form 10-403 Revised 06/2006 ~ t~ j ^ ~ ~ ~ 1 ~ ~~~., wF(~ ~ 2Q~d Submit in Duplicate • ~ 200$ Capillary String Installation Page 1 2008 Capillary String Installation Program #2 KGF, SU, NGF KBU 24-7X -Requested KBU 14-6Y -Requested KBU 31-7RD -Requested SU 41-15RD -Requested FC 3 -Requested NS 3 -Requested NS 1 -Requested Obiective 1) Install six new CICM's (injection skids) with 545 gallon totes of foamer at wellheads. 2) Install capillary strings (3/8" 2205 0.049" WT) into seven wells for delivering foamer to alleviate liquid loading. Procedure Companies involved: BJDC, BJCS, UOSS, Senette's IT group and electricians TVD Setting Setting Depth Setting String Depth Above Depth Spool Setting at max Estimated Maximum Perf Tag Fill Under PT Max Order Well Len th Depth erf Fluid Level Depth Depth Water Well Notes ID ran 1 KBU 24-7X 9000' 7965' 7850' 8141' 8165' 300' 115' Exoa a 1.75 2 KBU 14-6Y 8000' 7050' 7000' 7138' 7132' 82 50' Exca a 1.69 3 KBU 31-7RD 8000' 7220' 7120' 7534' 7392' 172 100' 1.75 4 SU 41-15RD 12000' 10400' 10300' 11506' 11498' 98 100' Exca a 1.75 5 FC 3 10000' 2720' 2615' Gas from SS 7770' N/A 105' Lon strin 6 NS 3 11000' 9785' 9605 9550' 10862' 10970' 1185' 235' 4-1/2" 2 7 NS 1 9000' 8733' 6715 None 8956' 10220' 1487 0 4-1/2" 2 Installation Procedure: 1) BJCS and ASRC: (PJSM & JSA) a) Place 6 new CICM skids at listed wells (BJCS, Steve Bolton, 252-9864) - deliver with truck (Oilfield Hotshot Service, Billy Hill, 398-4827) -unload CICM from truck with loader (ASRC Hardline Group, Tony, 294-0548) -unbolt and remove CICM roof with loader and place 545 gal foamer tote with loader - replace CICM roof with boom truck (DOSS, Tom David) and bolt roof b) Install CICM internals (BJCS, Steve Bolton, 252-9864). 2) COGZ work order (contact Senette's group) a) Electrical hookup of CICM. b) Tubing hookup of CICM. 2008 Capillary String Installation Page 2 3) UOSS -pull well house 4) BJDC, DOSS (PJSM and JSA): CJ 1. Have on site: proper spool, Wayne's Well Head Adapter (long/short both), Sundry. Well Control Standards Sheet. 2. MIRU BJ Dyna-Coil unit. 3. Shut swab valve, pull tree-cap flange, remove snap ring and OTIS blanking plug. Replace plug with WWHA (note o-ring). MU flange. 4. P/LT Dyna-Coil injector with UOSS crane; install packoff assembly into 2-7/8" female connection. NOTE: a wrench or tongs may be needed to hold the adapter 5. Set Fluid Control Valve release (set based upon TVD, but OVER) 6. MU BHA with centralizers and secure to 3/8" string. 7. SHUT IN WELL AT WING VALVE to prevent BHA from traveling into flow-tee and down flowline. NOTE: Operator or Company Supervisor may bring well back on after string is below flow-tee 8. RIH to setting depth. 9. Set Rattiguns. Leave 1.5 times SITP (or greater per BJDC) on hydraulic pack off. 10. OPEN WELL TO PRODUCTION 11. Leave remaining spool of tubing outside of well in plastic tote for soap injection skid hookup. 12. Cap tubing with a Swagelok cap and valve, pressure gauge, and HP filter. 13. Lockout Swab, Upper Master, and Lower Master as per Capstring Lockout Procedure. 14. Hookup injection line to CICM. NOTE: Start foamer at 1/2 gpd, slowly raising the level to planned rate as the week progresses. CHECK FOR FOAM RETURNS. 15. RDMO. Cleanup site. Sign-out. 5) UOSS -replace well house NOTE: When replacing well house, be careful of the tubing "bend" as it goes back inside if it extends through the roof Permit #: 205-023 API #: 50-133-20549-00-00 Prop. Des: ADL - 389180 KB elevation: 169' (21' AGL) WBS #: W0.07.15722.EXP Latitude: 60° 08' 20.168" N Longitude: 151° 31' 22.095" W X: 222,422.643 Y: 2,245,904.532 Spud: 3/12/2005 TD: 4/1 /2005 KOP @ 250' MDITVD Build 4.0°/100' from 250'- 2,095' MD Hold 60° from 2,095' - 4,360' MD Drop 2°/100' to 7,990' MD Hold 2.3° from 7,990' to TD @ 10,346' MD Azimuth: 290.6 deg Ninilchik State #1 Ninilchik Unit 924' FNL & 1172' FWL Sec. 34-T1 N-R13W • M MARATHON Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 87' TVD 0' 87' 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 1,744' TVD 0' 1,478' 12-1/4" hole Cmt w/ 390 sks (174 bbls) of 12.0 ppg, 60 bbls cmt to surface Intermediate Casing 7" L-80 26 ppf BTC Top Bottom MD 0' 5,554' TVD 0' 3,496' ng SVing -4.5", 12.6#, L-80, Buttress Mod ng String - 4.5", 12.6#, L-80, Hydril 533 r Chemical Injection Nipple @ 2382' MD (Top) 5.930" OD/3.858" ID 8430 psi bursU7500 psi collapse Liner Packer with 15' Tieback Extension @ 5359' MD (Top) Lock Liner Hanger @ 5384' MD (Top) er Joints @ 7241'-7281' MD (Two 20' long) er Joints @ 8821'-8861' MD (Two 20' long) ing Collar @ 10,244' MD (Top) Collar @ 10,278' MD (Top) Shoe @ 10,344' MD (Bottom) Radial Bond Log aged SCMT/GR/CCL from 10221'-5150' with 1600 psi WHP ~d bond from 10,221' - 8,800' KB bond between 8,800' - 7,360' KB >radic bond between 7,360' - 5,554' KB ~d bond between 5,554' - 5,400' KB Tagged PBTD at 10,221' MD with Expro SCMT/GR/CAL (5/9/2005) 8-1/2" hole Cmt w/ 233 sks (103 bbls) of 12.5 ppg Lead, & 175 sks (36.5 bbls) of 15.8 ppg Tail Bumped plug, no cmt to surface, floats held Liner 4-1/2" L-80 12.6 ppf Hydril 533 Top Bottom MD 5,359' 10,344' TVD 3,362' 8,102' ` 6-1/8" hole Cmt w/ 455 sks 13.5 ppg (No spacer or cement to surface) `Lost partial circulation after pumping 49 bbls displacement `Pollard Temp Log indicated TOC at 8,787' MD before Liner Top Squeeze "Squeezed Liner Top with 318 sks 13.5 ppg cement (Flowed back 15 bbls cement after bleeding off 1000 psi final pressure) Tvonek Perfs: MD TVD Net Ft Gun Data Date 8,720'-8,743' 6,479'- 6,502' 23 ft 3-3/8", 6 SPF Owen 8118/2005 8,940'-8,956' 6,699'- 6,715' 16 ft 3-3/8", 6 SPF Owen 12/27/2006 7,850' 5,589'- 5,609' 20 ft (2,631 psi @ 5609' TVD) 7,870' 5,618'- 5,629' 11 ft (2,640 psi @ 5629' TVD) TD PBTD 10,346' MD 10,221' MD 8,104' TVD 7,979' TVD Well Name & Number: Ninilchik State #1 Lease: Ninilchik Unit County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 8,720' - 8,956' (TVD): 6,479' - 6,715' Angle @ KOP and Depth: - 4° / 100 ft @ 250' MD Angle/Perfs: Dated Completed: Completion Fluid: Revised by: Kevin Skiba Last Revison Date: 2/6/2008 • • -• ~ 0.3/01 /2008 DO NOT PLACE `~ ,<,~. ,~ _- ,~,~..°. ,~. ANY NEW MATERIAL UNDER THIS PAGE F:1LaserFichelCwrPgs_Inserts\Arlicrofilm Macker.doc ~~ ~~~~ DATA SUBMITTAL COMPLIANCE REPORT 10/25/2007 Permit to Drill 2050230 Well Name/No. NU - NINILCHIK ST 1 Operator MARATHON OIL CO MD 10221 TVD 8104 Completion Date 8/25/2005 Completion Status 1-GAS Current Status 1-GAS API No. 50-133-20549-00-00 UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey Yes C~ DATA INFORMATION Types Electric or Other Logs Run: (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH / Type Med/Frmt Number Name Scale Media No Start Stop CH Received Comments i;,/~D C Las 13310.~Tnduction/Resistivity 500 10328 Open 5/11/2005 GR SP PORO DENS SONIC INDUCTION LAS Format. As Built (.pdf), ~ Daily Drilling Rpt(.tif), Dir ~ Surveys (.las, .xls, .prn) ~ Well Cores/Samples Information: Name Sample Interval Set Start Stop Sent Received Number Comments Cores and/or Samples are required to be submitted. This record automatically created from Permit to Drill Module on: 2/24/2005. ADDITIONAL INFORMATION Well Cored? Y / N~ Daily History Received? ~/ N Chips Received? NON Formation Tops ~N Analysis Y-LPF Received? Comments: Compliance Reviewed By: Date: • • ~~Q~[~ 0~ Qa~,~~{G~~ ; v....~,a. oi4Ca-7~A OI~ ~ ~~ 333 W. 7th AVENUE, SUITE 100 CO1~T51riR~'ATI011T CO1rII~'IISSIOI~T ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Ken Walsh Production Engineer Marathon Oil Company PO Box 1949 Kenai, AK 99611-1949 Re: Ninilchik Unit, Tyonek Pool, Ninilchik State # 1 Sundry Number: 307-250 Dear Mr. Walsh: Enclosed is the Application for Sundry Approval relating to the above referenced well. We are returning your application for Sundry Approval unapproved per your request. DATED thiss~"day of September, 2007 Encl. cab J~-`~ ~' •~ C M Marathon MARATHON Oil Company July 24, 2007 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-403 Sundry Notice Field: Ninilchik Unit Well: Ninilchik State #1 Dear Mr. Maunder: Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1311 Fax 907/283-1350 ~~ ~~laska Oil ~- O~c ~3s " ,,,~ , ~fiCl9~z s~~; Attached and submitted for your approval is the Form 10-403 to add new Tyonek perforations in the Ninilchik State #1 wellbore. A procedure and a wellbore diagram are also included. This well is currently a Tyonek gas producer. If you would like any other information, please contact me at 283-1311 or kdwalsh _marathonoil.com. Sincerely, Ken D. Walsh Senior Production Engineer Enclosures: 10-403 Sundry cc: AOGCC Well Schematic Houston Well File Operations Procedure Kenai Well File Ken Walsh ~,~ ~ V STATE OF ALASKA ~°~~ ALA OIL AND GAS CONSERVATION COMMISSION ~~~- 2 ~ 2007 APPLICATION FOR SUNDRY APPROVALS ~~~~~ ~~~ ~~ ~~ ~ C+~fnmissior, 20 AAC 25.280 ~ ' 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate ^~ Waiver ^ ~~~ `~-'s°~ther ^ Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension ^ Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ 2. Operator Name: Marathon Oil Company 4. Current Well Class: 5. Permit to Drill tuber: Development ^ Exploratory ^ 205-023 3. Address: Stratigraphic ^ Service ^ 6. API Number: PO Box 1949, Kenai Alaska, 99611-1949 50-133-20549-00-00 - 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No D i~nilchik State #1 - 9. Property Designation: 10. KB Elevation (ft):, 1 . Field/Pool ADL - 389180 < 169' (21' GL-KB) , nilc ik Unit / Tyonek Pool " 12. PRESENT WELL CONDITION SUMMARY. ,< Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD lu (measured): Junk (measured): 10,346' 8,104' _ 10,221' 7,97. NA NA Casing Length Size MD ND Burst Collapse Structural Conductor 8?~ 20" 3,060 i 1,500 psi Surface 1,744' 9-5/8" ,4 5,750'~si 3,090 psi Intermediate 5,554' 7" 5, 3,496' ,psi 5,410 psi Production Liner 4,985' 4-1 /2" 10,34 ' 8,102' 8,430 psi 7,500 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): bi Si Tu d Tubing MD (ft): 8,720'-8,743' & 8,940'-8,956' 6,479'-6,502' & 6,699'-6,71 -1 /2" L-80 5,359' Packers and SSSV Type: ackers and S ft Baker 4-1 /2" ZXP Li er cker 5,359' MD (Top) 13. Attachments: Description Summary of P sa Q ~ 14. Well Class afte r osed work: Detailed Operations Program ^ BOP etc ^ Exploratory ^ Development Q Service ^ 15. Estimated Date for ~ 16. Well Status after proposed work: Commencing Operations: Oil ^ Gas ^~ Plugged ^ Abandoned ^ 17. Verbal Approval: ry D e: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: ••/ 18. I hereby certify that the foregoing is a and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Ken D. Wals Title Senior Production Engineer Signature Phone Date .~•~r (~ (907) 283-1311 --] 4 I.JC.J~- L COMMISSION USE ONLY Conditions of approv .Notify Commission so that a representative may witness Sundry Number: 2~ Plug Integrity BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other. S BFI s~P o ~ ~oo~ Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Form 10-403 Revised 06/2006 O R I G I N A L ~~~~~/3//~ubmit in Duplicate • • M MARATHON OIL COMPANY MARATHON ALASKA REGION Ninilchik Field Ninilchik State #1 Perforate Additional Pay WBS # W0.07.15722.EXP 07/24/2007 Objective: Perforate additional Class 1 Tyonek pay zones 7859-7870' and 7830- 7850' KB. Note the casing short joint locations at 7241-7281' (two-20' long) and 8821-8861' KB (two-20' long). Perforating gun data includes 3-3/8" OD Hollow Steel Carrier loaded 6 SPF with 3- 1/8", SDP-3125-311NT3 charges. Maximum gun swell in air is 3.635" O.D. with an average entrance hole of 0.36" and penetration of 40.25". Perforating 30% Underbalance 50% Underbalance Interval SITP Recommendations FTP Recommendations 7859-7870' 1610 psig 1160 psig 7830-7850' 1605 psig 1155 psig 1) MIRU Expro perforators. a. Hold PJSM and complete Safe Work Permit form. b. Install wireline valve with pump in sub to Otis tree cap connection. c. Install sufficient lubricator for 20' of 3.375" perforating guns. d. Test BOPE and lubricator to 250/2500 psi with water or methanol water as required by the weather conditions. e. ND lubricator and MU perforating gun. f. While RIH with perforating guns on each separate run, choke production rate to achieve the recommended surface SITP recommended above for each perforated interval. Immediately begin POOH with gun after perforating. Note rate of surface pressure build for 5 minutes. Then open well back up to flow while POOH with spent gun and RIH with new gun. If surface pressure and flow characteristics following a gun run indicates the influx of a relatively large amount of produced water, curtail further perforating and consult Reservoir and Production Engineering to decide the next step to be undertaken. g. MU and RIH with CCL, PX-1 firing head, and 3.375" OD, 6 SPF loaded perforating guns as outlined in Step #2. h. Correlate cased hole bond log depth to recommended perforation intervals picked from Precision Array Induction Log run 02-Apr-2005. • • Page 2 of 2 (Note casing short joint locations on Expro CBL). Shut well in and perforate while monitoring surface pressure. POOH and begin flowing well to sales after 5 minutes. 2) Continue perforating per the following schedule observing Interval Loaded Footage 7859-7870' 11' 7830-7850' 20' Total 31' 3) RDMO Expro Wireline. 4) Flow well to production facility. CONTACTS Ken Walsh: 907-283-1311 (w) 907-394-3060 (c) Dave Martens: 713-296-3302 (w) 832-472-6249 (c) Lyndon Ibele: 907-565-3042 (w) Clyde Scott: 713-296-2336 (w) 907-748-2819 (c) Ninilchik Operators: 907-260-7660 or 907-567-3248 (Susan Dionne Pad) KGF Operators: 907-283-1305 Ninilchik State #1 July 2007 Perf Adds KDW- 7/24/2007 10:07:42 AM ._ • Ninilchik State #1 Ninilchik Unit 924' FNL & 1172' FWL Sec. 34T1 N-R13W Intermediate Casing 7" 26 ppf L-80 TOP_ Bottom MD 0' 5554' TVD 0' 3496' i M IIIIWlAT11oM Conductor 20" K-55 TOQ MD 0' TVD 0' Surface Casing 9-5/8" 40 ppf L-80 BTC TOE Bottom M D 0' 1744' TVD 0' 1478' 12-1 /4" hole with 390 sks (174 bbls) 12 ppg cement with 60 bbls cement to surface. Tubing String - 4.5", 12.6#, L-80, Buttress Mod Casing String - 4.5", 12.6#, L-80, Hydril 533 Baker Chemical Injection Nipple @ 2382' MD (Top) 5.930' OD/3.858" ID 8430 psi bursU7500 psi collapse ZXP Liner Packer with 15' Tieback Extension @ 5359' MD (Top) Flex-Lock Liner Hanger @ 5384' MD (Top) Marker Joints @ 7241'-7281' MD (Two 20' long) Marker Joints @ 8821'-8861' MD (Two 20' long) Landing Collar @ 10,244' MD (Top) Float Collar @ 10,278' MD (Top) Float Shoe @ 10,344' MD (Bottom) Cement Squeeze Perfs: 8698-8700' MD 3-3/8" Owen 6 SPF 8200-8202' MD 3-318" Owen 6 SPF 7758-7760' MD 3-3/8" Owen 6 SPF Cement Top at 8800' Expro Radial Bond Log -Logged SCMT/GR/CCL from 10221'-5150' with 1600 psi WHP -Good bond from 10,221' - 8,800' KB -No bond between 8,800' - 7,360' KB -Sporadic bond between 7,360' - 5,554' KB -Good bond between 5,554' - 5,400' KB TD: 10,346' MD / 8104' TVD 8.1/2" hole with 233 sks (103 bbls)12.5 ppg Lead + 175 sks (36.5 bbls) 15.8 ppg Tail Bumped plug, no cement to surface, floats held 133 ppf PE Bottom 87' 87' BTC Tvonek Perfs: MD TVD Net Ft Gun Data and Perf Date 8720-8743', 6479-6502', 23 ft 3-3/8", 6 SPF Owen on 8/18/2005 8940-8956', 6699.6715', 16 ft 3-3/8", 6 SPF Owen on 12/27/2006 Proposed Tvonek Perfs: 7830-7850', 5589-5609', 20 ft, (2631 psi @ 5609' TVD) 7859-7870', 5618.5629', 11 ft, (2640 psi @ 5629' TVD) Tagged PBTD at 10221' MD with Expro SCMT/GR/CAL on 5/9/2005 Tagged PBTD at 10215' MD with CT motor/mill run on 8/4/2005 Liner 4-1 /2" 12.6 ppf L-80 Hydril 533 Top Bottom MD 5359 10344 TVD 3362 8102 Ninilchik State #1; PTD #2023: Cancellation of 403 Application t~d Perfs Page 1 of 1 Maunder, Thomas E {DOA) From: Maunder, Thomas E (DOA) Sent: Friday, August 31, 2007 3:29 PM To: 'Walsh, Ken' Cc: Skiba, Kevin J.; Ibele, Lyndon; Ci se{1, Wayne E.; Donovan Jr, Dennis M.; Grant, Patrick; Mullin, Mickey; Rang, Craig L.; Sulley, Michael Subject: RE: Ninilchik State #1; PTD #205-023: Cancellation of 403 Application to Add Perfs Ken, confirm our conversation and your summary. A copy of the sundry may be sent back to you, however you are correct that no 404 would be necessary. Tom Maunder, PE AOGCC From: Walsh, Ken [mailto:kdwalsh@marathonoil.com] Sent: Friday, August 31, 2007 3:24 PM To: Maunder, Thomas E (DOA) Cc: Skiba, Kevin J.; Ibele, Lyndon; Cissell, Wayne E.; Donovan Jr, Dennis M.; Grant, Patrick; Mullin, Mickey; Rang, Craig L.; Sulley, Michael; Walsh, Ken Subject: Ninilchik State #1; PTD #205-023: Cancellation of 403 Application to Add PerFs Tom, As we discussed this afternoon, I am sending you notice by this email that Marathon does not plan at this time to proceed with adding perforations to the Ninilchik State #1 well. Marathon sent a Form 10-403 application regarding adding the perforation intervals 7859-7870' MD and 7830-7850' MD by mail under cover letter dated July 24, 2007. We agreed that it would be more convenient for both of us if you simply did not approve the application and generate a sundry number for this work. Therefore, Marathon will not be required to file a Form 10-404 to close out the 10-403 application since the application was not approved and the work was not performed. Please send an email confirmation that you have received and agree with this synopsis. Regards, .~ Ken D. Walsh Senior Production Engineer Marathon Oil Company-Alaska Asset Team 907-283-1311 (office) 907-394-3060 (cell) 8/31/2007 M Marathon MARATHON Oil Company February 9, 2007 Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 Reference: 10-404 Add Perforations Sundry Notice Field: Ninilchik Gas Field -Ninilchik State Pad Well: NS #1 Dear Mr. Maunder: ~ECEIWED FEB ~ ~ 2007 Alaska Qil $ Gas Cons. CO~ission Anchorage Well NS #1 is a Tyonek producer that was perforated on 8/18/05 with 23' of 6spf guns at 8720-8743' MD. The well was then vent flow tested on report 8/23/05 and the back pressure valve was reset. Ken Walsh submitted a 10-407 completion report for the flow when this well was in test. In 12/27/06 Marathon added 16' of perforations at 8940'-8956'. This report is the follow up for the added perforations in December of last year. If you have any questions or need further information please call Kevin Skiba at (907) 283-1371 or me at (907) 283-1333. Sincer ly, Dennis M. Donovan Jr. Production Engineer Enclosures: 10-404 Sundry cc: Houston Well File Operations Procedure Kenai Well File Well Schematic Kevin Skiba Ken Walsh Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1326 Fax 907/283-1350 STATE OF ALASKA ~ °~ ~S D~ ALA OIL AND GAS CONSERVATION COMM ION REPORT OF SUNDRY WELL OPERATIONS ~E~Eiv~D FFB 1 3 2007 Alaska Oil & Gas Cons. Commission 1. Operations Abandon Repair Well Plug Perforations Stimulate Other Anchorage Performed: Alter Casing ^ Pull Tubing ^ Perforate New Pool ^ Waiver^ Time Extension ^ Change Approved Program ^ Operat. Shutdown ^ Perforate ~ Re-enter Suspended Well ^ 2. Operator 4. Well Class Before Work: 5. Permit to Drill Number: Name: Marathon Oil Company Development ~ ~ Exploratory^ 205-023 ~ 3. Address: Stratigraphic^ Service^ 6. API Number: PO Box 1949, Kenai Alaska, 99611-1949 50-133-20549-00 ~ 7. KB Elevation (ft): 9. Well Name and Number: 169' 21' GL-KB Ninichik State #1 ~ 8. Property Designation: 10. Field/Pool(s): ADL 389180 ' Ninilchik Unit / T onek Pool 11. Present Well Condition Summary: Total Depth measured 10,346' feet Plugs (measured) true vertical 8,104' feet Junk (measured) Effective Depth measured 10,221' feet true vertical 7,979' feet Casing Length Size MD TVD Burst Collapse Structural Conductor 87' 20" 87' 87' 3,060 psi 1,500 psi Surface 1,744' 9-5/8" 1,744' 1,478' 5,750 psi 3,090 psi Intermediate 5,554' 7" 5,554' 3,496' 7,240 psi 5,410 psi Production Liner 4,985' 4-1/2" 10,344' 8,102' 8,430 psi 7,500 psi Perforation depth: Measured depth: 8720'-8743' & 8940'-8956' ~ True Vertical depth: 6479'-6502' & 6699'-6715' Tubing: (size, grade, and measured depth) 4-1/2" L-80 5,359' Packers and SSSV (type and measured depth) Baker 4-1 /2" ZXP Liner Packer 5,359' MD (Top) 12. Stimulation or cement squeeze summary: Intervals squeezed: 8,698'-8,700', 8,200'-8,202', 7,758'-7,760' (MD) Intervals treated (measured): None ~~ f r f 'S ~?Ql;; Treatment descriptions including volumes used and final pressure: None 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: N/A 0 0 0 2537 SITP Subsequent to operation: N/A 9500 0 0 1275 FTP 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory^ Development Q Service ^ Daily Report of Well Operations X 16. Well Status after work: Oil ^ Gas ~ WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: Contact Dennis M. Donovan Jr. Printed Name Dennis M. Donovan Jr. Title Production Engineer Signature Phone (907) 283-1333 Date 8-Feb-07 Form 10-404 Revised 04/2006 h ~ ~ ~ ! n' ~ ~ ~ ~~~ Submit Original Only I~.JJ 1'v ' • F'~-~`~ `\~ Marathon Oil Company Page 7 of 8 Operations Summary Report Legal Well Name: NINILCHIK STATE 1 Common Well Name: NINILCHIK STATE 1 Spud Date: 3/12/2005 Event Name: ORIGINAL COMPLETION Start: 4/30/2005 End: Contractor Name: GLACIER DRILLING Rig Release: 4/9/2006 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Phase... pescriptiort of Operations . Code 8/19/2005 10:30 - 11:00 0.50 SAFETY MTG_ CMPPRF perforating gun. 11:00 - 11:45 0.75 PULD_ PGUN CMPPRF Armed 25' 3-3/8" carrier and took lubricator to tree. RIH with 3.375" OD perforating gun loaded 23' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Troubleshot Expro computer software problem fort/2 hour. 11:45 - 12:15 0.50 PERF_ CSG_ CMPPRF Correlated depth with CBL and Array Induction logs. Perforated 8720-8743' MD with 1775 psi SICP. 12:15 - 13:00 0.75 RUNPU ELEC CMPPRF POOH with guns for 10 minutes and SICP had increased to 2250 psi. Began flowing well while continuing to POOH with perforating guns. 13:00 - 14:30 1.50 RURD_ ELEC CMPPRF Bled pressure off of lubricator. LD perf gun and lubricator. All shots fired and round. LD wireline valve. RDMO Expro perforators. Plan is to flow test well at around 6-6.5 MMscfd without allowing FTP to drop below 1100 psi. 14:30 - 00:00 9.50 FLOW_ TEST CMPPRF Flow tested well through PWS. 8/20/2005 12:00 - 12:30 0.50 SAFETY MTG_ CMPFLW Held PJSM with Pollard, PWS, and MOC personnel to review Safe Work Permit conditions and operational plan. Well making 6.8 MMscfd at 1810 psi in AM. 12:30 - 14:00 1.50 RURD_ SLIK CMPFLW MIRU Pollard slickline unit and mast truck. MU lubricator, flow tee, and wireline valve. MU tandem quartz gauges below AD-2 tubing stop, jars, and roller stem on slickline. SI well at 13:30 hours to finish RU lubricator and valves to tree cap. Activated timers on gauges at 13:58 hrs on encoder. Took lubricator to wellhead. 14:00 - 16:00 2.00 RUNPU SLIK CMPFLW Opened well and pressure tested to 500 psi low and 2500 psi with WHP. RIH with BHA at 100 fpm. Set AD-2 stop with middle of gauge sample ports at 8690' WL MD. Sheared off of AD-2 stop. 16:00 - 16:30 0.50 RUNPU SLIK CMPFLW POOH with setting tool, jars, and roller stem. LD lubricator and tools. 16:30 - 17:30 1.00 RURD_ SLIK CMPFLW RDMO Pollard slickline. Installed and activated MOC DataTrap on tree cap flange outlet. Reinitiated flow test with target hold rate of 7.0-7.2 MMscfd throughout the weekend. Anticipate shutting in the well for a PBU sometime Monday, August 22. 8/23/2005 00:00 - 18:00 18.00 FLOW_ TEST CMPFLW Well has been flow tested with a relatively stable rate and pressure of 6.85 MMscfd and 1900 psi FTP since perforations were added on 8/18/2005 and pressure gauges were run on 8!19/2005. Shut well in for pressure buildup at 18:00 hrs on 8/22/2005. 8/25/2005 07:00 - 17:00 10.00 RURD_ OTHR CMPFLW RDMO PWS well test equipment. 9/3/2005 07:00 - 07:30 0.50 SAFETY MTG_ CMPFLW Held PJSM with Pollard and MOC personnel to review Safe Work Permit conditions and operational plan. Well has been shut in for a static PBU. 07:30 - 09:30 2.00 RURD_ SLIK CMPFLW MIRU Pollard slickline unit and mast truck to retrieve pressure bombs. RU wireline valve to swab valve. MU lubricator and GS pulling tool with spang jars. Took lubricator to wellhead and pressure test to 2500 psi with WHP. ~~ 09:30 - 13:30 4.00 RUNPU SLIK CMPFLW RIH with GS pulling tool and spang jars on slickline to 8690' MD. ~ ~ Engaged and released AD-2 stop with gauges. POOH at 120 fpm with ~ ~,~~ gauges recording 10 min. benches at 8600', 8400', 8200', 8000', 7500', ' ' ' 7000 , 6000 , 5000 , and surface. 13:30 - 14:00 0.50 RURD_ SLIK CMPFLW LD lubricator and tool string after shutting in well. Downloaded data from gauges-appears to be good data. Vetco on location to set back pressure valve. Held tailgate safety meeting. 14:00 - 15:00 1.00 RURD_ SLIK CMPFLW RU Vetco using Pollard mast truck. Pollard continued to RDMO. Vetco ran and set back ressure valve in tubing hanger. 12/28/2006 08:00 - 09:30 1.50 SAFETY MTG_ MIRU Expro personnel arrived on location. Held PJSM with facility operators and crane operators. Discussed procedure and current operations. Printed: 2/8/2007 3:19:05 PM • Marathon Oil Company Operations Summary Report Legal Well Name: NINILCHIK STATE 1 Common Well Name: NINILCHIK STATE 1 Page 8 of 8 Spud Date: 3/12/2005 Event Name: ORIGINAL COMPLETION Start: 4/30/2005 End: Contractor Name: GLACIER DRILLING Rig Release: 4/9/2006 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase. Description of Operations 12/28/2006 09:30 - 10:00 0.50 RURD_ ELEC MIRU Moved well house with crane after isolated from power. 6" snow removed around well house. Moved in unit and continued with rig up. 10:00 - 12:15 2.25 SAFETY MTG_ MIRU Made up lubricator. Held explosive safety meeting prior to arming gun, 12:15 - 14:10 1.92 WORK ELEC WRLN 14:10 - 14:30 0.33 PERF_ CSG_ WRLN 14:30 - 16:00 I 1.501 RURD I ELEC I WRLN 16:00 - 17:00 I 1.001 RURD I ELEC I WRLN went to communications black out on pad. PU gun in lubricator and pressure tested lubricator to 2200 psig. Test good. Cut well back to 2000 psig @ 4700 psig. Open well and RIH with 16', 3.375" OD pert gun with SDP- 3125-311 BT3 charges, 6 SPF. Correlate to CBL and array induction log. Perforate from 8940' to 8956' DIL. POOH with gun. Rate increase up to 5900 MCFPD, 2005 psig after 10 minutes. OOH with gun, blew down lubricator, lay down gun tool string. Inspected gun, all shots fired. Expro continue to rig down wire line unit. Well at 7400 MCFPD, 1940 psig, made 4.5 bbls fluid.. EXpro cleaned up and left lease. Veco set well house back over well. Printed: 2/8/2007 3:19:05 PM Ninilchik State #1 Ninilchik Unit 924' FNL & 1172' FWL ruw-n~oN Sec. 34T1 N-R13W r Chemical Injection Nipple @ 2382' MD (Top) 5.930" OD/3.858" ID 8430 psi burst/7500 psi collapse Liner Packer with 15' Tieback Extension @ 5359' MD (Top) Lock Liner Hanger @ 5384' MD (Top) er Joints @ 7241'-7281' MD (Two 20' long) er Joints @ 8821'-8861' MD (Two 20' long) ing Collar @ 10,244' MD (Top) Collar @ 10,278' MD (Top) Shoe @ 10,344' MD (Bottom) Cement Squeeze Perfs: 8698-8700' MD 3-3/8" Owen 6 SPF 8200-8202' MD 3.3/8" Owen 6 SPF 7758-7760' MD 3-318" Owen 6 SPF TD: 10,346' MD / 8104' TVD Formation Tops: Formation Depth (MD) Depth (TVD1 Beluga Tyonek TD Cement Top at 8800' Expro Radial Bond Log Circulation Squeeze at Expro Radial Bond Log Intermediate Casing 7" MD TVD Conductor 20" K-55 133 ppf PE TOE Bottom MD 0' 87' TVD 0' 87' Surface Casing 9-5/8" 40 ppf L-80 BTC TOE Bottom MD 0' 1744' TVD 0' 1478' 12-1 /4" hole with 390 sks ( 174 bbls) 12 ppg cement with 60 bbls cement to surface. 26 ppf L-80 BTC T~ Bottom 0' 5554' 0' 3496' 8-1 /2" hole with 233 sks (103 bbls) 12.5 ppg Lead + 175 sks (36.5 bbls) 15.8 ppg Tail Bumped plug, no cement to surface, floats held Tvonek Perfs: MD TVD Net Ft it 8720-8743', 6479-6502', 23 ft 3-318", 6 SPF Owen on 8!18/2005 '~ 8940-8956', 6699-6715', 16 ft 3-3/8", 6 SPF Owen on 12/27!2006 Tagged PBTD at 10221' MD with Expro SCMT/GR/CAL on 5/9/2005 Tagged PBTD at 10215' MD with CT motor/mill run on 8/4/2005 Liner 4-1/2" 12.6 ppf L-80 Hydril 533 T~ Bottom MD 5359 10344 TVD 3362 8102 • • M Marathon MARATHON Oil Company January 24, 2006 Steve McMains AOGCC 333 West 7t" Ave Suite 100 Anchorage, AK 99501 Dear Mr. McMains: Alaska Region Domestic Production P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/5646305 Fax 907/564-6489 Attached and submitted for your records is the Form 10-407 completion sundry for the Ninilchik State #1 well. This well was completed as a Tyonek gas producer. Initial sales from this well are waiting on facilities installation on this new pad. Also attached for your records is the current well schematic, directional survey, and completion history. If you would like any other information, please contact me at 394-3060 or kdwalsh _marathonoil.com. Sincerely, ~~.,`~ w~ Ken D. Walsh Senior Production Engineer Enclosures STATE OF ALASKA ALASKA IL AND GAS CONSERVATION COMMIS 1 a. Well Status: Oil ^ Gas ~ Plugged ^ Abandoned ^ 20AAC25.105 GINJ ^ WINJ ^ WDSPL ^ No. of Completions Suspended ^ WAG zoas,c2s.11o Other 1 b. Well Class: ,~~ Development 0 Exploratory^ Service ^ Stratigraphic Test^ 2. Operator Name: MARATHON OIL COMPANY 5. Date Comp., Susp., or Aband.: ~ I~G 12. Permit to Drill Number: 205-023 3. Address: P. O. Box 1949, Kenai, AK 99611-1949 6. Date Spudded: March 12, 2005 13. API Number: 50-133-20549-00 4a. Location of Well (Governmental Section): Surface: 924' FNL, 1172' FWL, Sec. 34, T1 N, R13W, S.M. 7. Date TD Reached: April 1, 2005 14. Well Name and Number: Ninilchik Unit/Ninilchik State #1 Top of Productive Horizon: 730' FSL, 3246' FEL, Sec. 28, T1N, R13W, S.M. 8. KB Elevation (ft): 169' (21' GL-KB) 15. Field/Pool(s): Ninilchik UnitlTyonek Pool Total Depth: 788' FSL, 3262' FEL, Sec. 28, T1 N, R13W, S.M. 9. Plug Back Depth(MD+TVD): 10221' + 7979' 4b. Location of Well (State Base Plane Coordinates): Surface: x- 222423 y- 2245905 Zone- 4 10. Total Depth (MD +TVD): 10346' + 8104' 16. Property Designation: ADL 389180 TPI: x- 218005 y- 2247559 Zone- 4 Total Depth: x- 217988 y- 2247617 Zone- 4 11. Depth Where SSSV Set: 17. Land Use Permit: 18. Directional Survey: Yes ~ No ^ 19. Water Depth, if Offshore: feet MSL 20. Thickness of Permafrost: 21. Logs Run: Precision Drilling: Array Induction, Compensated Sonic, Dual Neutron, Photo Density. 22. CASING, LI NER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 20' 133 K-55 0' 87' 0' 87' Driven None 9-5/8" 40 L-80 0' 1744' 0' 1478' 12-1 /4" 390 sks None 7" 26 L-80 0' 5554' 0' 3496' 8-1/2" 408 sks None 4-1/2" 12.75 L-80 5359' 10344' 3362' 8102' 6-1/8" 773 sxs None 23. Perforations open to Production (MD +TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) 8698 - 8700', 2 ft 6457-6459' TVD Owen 3.375" 6 SPF .36" EH 4-1/2" 5359' 5359' 8720 - 8743', 23 ft 6479 -6502' TVD Owen 3.375" 6 SPF .36" EH 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 7772'-8202' MD 16.5 bbls 15.8 ppg Class G Cement 26. PRODUCTION TEST Date First Production: N/A: Waiting on Facilities Installation Method of Operation (Flowing, gas lift, etc.): FIOWIII Date of Test: 8/22/2005 Hours Tested: 24 Production for Test Period Oil-Bbl: 0 Gas-MCF: 6833 Water-Bbl: 0 Choke Size: 17/64" Gas-Oil Ratio: N/A Flow Tubing Press. ~ 896 Casing Press: 0 Calculated 24-Hour Rate ~ Oil-Bbl: 0 Gas-MCF: 6833 Water-Bbl: 0 Oil Gravity -API (corr): N/A 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". I at~~e~~r ~ ',~ `1 ,< w ii=i 1 ~~s ~~~ ~fr~i~ . s 20D6 '. ~rA~ 2 ~ .zoos WELL .COMPLETION OR RECOMPLETION REPORT AP~~t~ cons. cammiss~r; Form 10-407 Revised 12/2003 ~ ~~~ ~ ~ ~e4''C~ED ON REVERSE 28. GEOLOGIC MARKER 29. ORMATION TESTS NAME M TVD Include and briefly su ze test results. List intervals tested, and attach Beluga 1510 1174 detailed supporting data as necessary. If no tests were conducted, state Tyonek 5822 3526 "None". Pert 8698-8700 for block squeeze but could not pump in (8/2005). Set plug and moved up hole to perform circ. squeeze successfully. Drilled plug and had pressure below plug (8/2005). Vent tested well. Rigged up testers 8/19/2005. Flowed squeeze perfs 5.4 MMCFPD @ 1400# FTP. Add perfs 8720-8743 w/ 1775# SICP. Pressure incr. to 2250#SICP in 10 min. Flow well 6.8 MMCFPD @ 1810# FTP. 30. List of Attachments: 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Ken D. Walsh Printed Name: Ken D. Walsh Title: Senior Production Engineer ,, .. `` Signature: ~M ~V Phone: 907-394-3060 Date: 1/24/2006 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with prod Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional in Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 • Ninilchik State #1 1' KB AGL 169' KB Elevation ,PI#50-133-20549-0000 Ninilchik Unit ermit#2os-o23 924' FNL & 1172' FWL MARA7110M roperty Des: ADL 389180 Sec. 34-T1 N-R13W VBS # DX.04.10986.CAP.CMP =222,422.643 =2.245,904.532 at: 60 OS' 20.168" N ~ Conductor ong: 151 31' 22.095" W 20" K-55 133 ppf pud:03/12/2005 T_O~ Bottom D: 07:00 hrs 04/1/2005 MD 0' 87' TVD 0' 87' KOP @ 250' MDITVD Build 4.0 deg1100' from 250-2095' MD Hold 60 deg from 20954360' MD Drop 2 deg/100' to 7990' MD Hold 2.3 deg from 7990' to TD at 10346' MD Azimuth: 290.6 deg. 3aker Chemical Injection Nipple @ 2382' MD (Top) 5.930" OD/3.858" ID 8430 psi bursV7500 psi collapse '_XP Liner Packer with 15' Tieback Extension @ 5359' MD (Top) =1ex-Lock Liner Hanger @ 5384' MD (Top) utarker Joints @ 7241'-7281' MD (Two 20' long) vlarker Joints @ 8821'-8861' MD (Two 20' long) _anding Collar @ 10,244' MD (Top) =loaf Collar @ 10,278' MD (Top) =loaf Shoe @ 10,344' MD (Bottom) :ement Squeeze Perfs: '.698-8700' MD 3-3/8" Owen 6 SPF '.200-8202' MD 3-3/8" Owen 6 SPF '758-7760' MD 3-3/8" Owen 6 SPF TD: 10,346' MD / 8104' TVD 'ormation Tops: 'ormation Depth (MD) Depth (TVD) leluga 'yonek 'D Cement Top at 8800' Expro Radial Bond Log ~~ Circulation Squeeze at Expro Radial Bond Log Intermediate Casing 7" MD TVD PE Surface Casing 9-5/8" 40 ppf L-80 BTC T~ Bottom MD 0' 1744' TVD 0' 1478' 12-114" hole with 390 sks (174 bbls) 12 ppg cement with 60 bbls cement to surface. 26 ppf L-80 BTC T~ Bottom 0' 5554' 0' 3496' 8-112" hole with 233 sks (103 bbls) 12.5 ppg Lead + 175 sks (36.5 bbls) 15.8 ppg Tail Bumped plug, no cement to surface, floats held Tyonek Perfs: MD TVD Net Ft 8720-8743', 6479-6502', 23 ft 3-3/8", 6 SPF Owen on 8/18/2005 ~u ~ ~~ ~ ~~ .._ ~"~ .w~ ~~ Tagged PBTD at 10221' MD with Expro SCMT/GR/CAL on 5/9/2005 Tagged PBTD at 10215' MD with CT motor/mill run on 8/4/2005 Liner 4-1/2" 12.6 ppf L-80 Hydril 533 T~ Bottom MD 5359 10344 TVD 3362 8102 6-1/8" hole with 455 sks 13.5 ppg (No spacer or cement to surface) Lost partial circulation after pumping 49 bbls displacement Pollard Temp Log indicated TOC at 8787' MD before Liner Top Squeeze Squeezed Liner Top with 318 sks 13.5 ppg cement (Flowed back 15 bbls cement after bleeding off 1000 psi final pressure) • Marathon ~i'I Company Page 1 of 3 Operations Summary Report Legal Well Name: NINILCHIK STATE 1 Common Well Name: NINILCHIK STATE 1 Event Name: ORIGINAL COMPLETION Contractor Name: BJ SERVICES Rig Name: BJ SERVICES D T F H I I C Sub Pha ate rom - o ours ode Code se 4/4/2005 ~ 15:00 - 18:00 ~ 3.00 ~ TRIP_ ~ DP_ ~ PR1CSG 4/5/2005 4/6/2005 18:00 - 22:00 ~ 4.00 CIRC_ ~ MUD_ ~ PR1CSG 22:00 - 03:00 I 5.001 PULD I DP I PR1CSG 03:00 - 05:00 2.00 TRIP_ DP_ PR1CSG 05:00 - 06:00 1.00 TRIP_ BHA_ PR1CSG 06:00 - 06:30 0.50 PULD_ BHA_ PR1CSG 06:30 - 09:00 2.50 RURD CSG PR1 CSG 09:00 - 18:00 9.00 RUN_ CSG_ PR1CSG 18:00 - 19:30 1.50 RURD CSG PR1CSG 19:30 - 20:00 ~ 0.50 ~ CIRC_ ~ MUD_ ~ PR1 CSG 20:00 - 21:00 21:00 - 00:30 00:30 - 01:30 01:30 - 02:30 02:30 - 03:00 03:00 - 04:00 04:00 - 05:30 1.00 RURD_ OTHR PR1CSG 3.50 RUN CSG PR1CSG 1.00 CIRC_ MUD_ PR1CSG 1.00 RUN_ CSG_ PR1CSG 0.50 REPAIR RIG_ PR1CSG 1.00 RUN_ CSG_ PR1CSG 1.50 CIRC MUD PR1CSG 05:30 - 06:00 06:00 - 08:00 08:00 - 13:00 13:00 - 14:00 14:00 - 17:00 0.50 RUN CSG PR1CSG 2.00 RUN CSG PR1CSG Spud Date: 3/12/2005 Start: 4/3/2005 End: 4/10/2005 Rig Release: Group: Rig Number: 1 Descrip#ion of Operations Receive communication, MOC Geo Dept to run 4 1/2 liner. TIH to 10282' and wash to 10346' (no loss/gain) Circ and condition mud for 4 1/2 liner. Pump Hi-Vis sweep, Centrifuge mud to 9.5ppg. Sweep returns at 1100 strokes over calculated. (32 bbls) no loss/gain/ max gas units on bottoms up 720 units) Check flow, pump dry job. Determined 25% washout. PJSM:Lay down 5000' of 4" drill pipe and sort out coated from uncoated. POOH to Bha Flow check, handle BHA, lay out clean out assy. Lay do clean out bha PJSM:CIear rig floor and rig up Weatherford tongs, slips, elevators, and fill up line TIH with 162 jts. 4 1/2" 12.6# L-80 Hydril 533 csg. 4950' P/U & M/U Baker ZXP Liner Pkr. change out elevators and R/D Weatherford Csg. crew. Fill liner with PAL Mix. Run 1 Std from derrick and circulate liner 3000 Strks. at 300 psi. 126 gpm. Up 55/Dn35.Rot 48,Tq at 20 RPM 3000,Rot up 50, Rot do 40, No loss/gain PJSM: M/U Baker cmt rotating head, and blow down mud system. Continue to RIH with 4 1/2" liner on drill pipe @ 2 min per std to 6600' (no loss/gain, no abnormal drag CBU, @ 6600' 126 gpm, 340 psi, 4500 stks.(no loss/gain) recip pipe Cont to RIH W/ 4 1/2" Liner to 7825' @ 2 min per std. (no loss/gain, no abnormal drag. Work on PLC Continue to RIH W/Liner to 8600' (no loss/gain, no abnormal drag) CBU, @ 8651' 126 gpm, 520 psi, for 6000 # stks. (no loss/gain, no abnormal drag recip pipe)125 up, 67dn Continue to RIH W/ Liner to 9407' (no gain/loss, no abnormal hole conditions. Continue to RIH W/Liner to 10336' Ran a total of 162 jts. 4 1/2" 12.6# L-80 Hyd 533 csg. Final setting depth 10,344'. 5.00 CIRC_ MUD_ PR1CSG Circ and pump Red dye marker in sweep and pump carbide @ 126 gpm, 900 psi. no loss/gain , no abnormal drag or torque. Batch mix cmt. 1.00 RURD_ CMT_ PR1CSG M/U and pick up Baker cmt head. 3.00 PUMP_ CMT_ PR1CSG Pump 5 bbl. water, test lines to 4500 psi, pump 50 bbl.gel spacer mixed at 10 ppg. pump 147 bbl.(455sxs) CI "G" cmt, mixed at 13.5ppg. +10%BA-90+2.5%BA-56+.4%CD-32+.1 %ASA-301 +.5% SMS+.S%EC-1+1ghs FP-6L ,shut down and wash lines, Drop Dart and Displace with 75 bbl. 6% KCL water+51 bbl. mud Slow rate for latch up to 1bpm@ 52.5bb1. away, @ 95 bbls 3-bpm 1550 psi .slow rate to 1 1/2 bpm @ 124 bbl. psi. 1755.1anded plug at 125 3/4 bbl. away pressure to 2700 psi. and hold for 10 min . slack off 30 k pressure up to 4000 psi, and release running tool check floats OK, CIP @ 1630 hrs. 4/5/2005. Pump 50 spacer+147 bbl cmt slurry+49 bbl of 6% kcl displacement fluid and annulus bridged off and 100% returns were lost job went forward as planned with no returns or pipe movement. caculated that possible 9-bbls. of spacer past top of liner when flow restriction Printed: 1/9/2006 3:55:45 PM • Marathon Oil Company Page 2 of 3 operations Summary Report Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date I From:- To NINILCHIK STATE 1 NINILCHIK STATE 1 Spud Date: 3/12/2005 ORIGINAL COMPLETION Start: 4/3/2005 End: 4/10/2005 BJ SERVICES Rig Release: Group: BJ SERVICES Rig Number: 1 Hours Code Code Phase Description of Operations 4/6/2005 14:00 - 17:00 3.00 PUMP_ CMT_ PR1CSG 17:00 - 19:30 2.50 CIRC_ MUD_ PR1CSG 19:30 - 02:30 7.00 LOG CSG PR1 CSG 02:30 - 03:30 I 1.00 I TEST I CMT I PR1 CSG 03:30 - 06:00 2.50 TRIP_ DP_ PR1 CSG 4/7/2005 06:00 - 07:00 1.00 TRIP_ DP_ PR1CSG 07:00 - 08:00 1.00 TRIP_ TOOL PR1CSG 08:00 - 08:30 0.50 TRIP_ TOOL PR1CSG 08:30-11:30 3.00 TRIP_ TOOL PR1CSG 11:30 - 12:30 1.00 SAFETY MTG_ PR1CSG 12:30 - 13:00 0.50 TEST_ LOT_ PR1CSG 13:00 - 14:00 1.00 PUMP_ CMT_ PR1CSG 14:00 - 15:30 1.50 PUMP CMT PR1CSG 15:30 - 16:30 I 1.001 CIRC I MUD I PR1CSG 16:30 - 17:00 0.50 SETREL PKR_ PR1CSG 17:00 - 19:30 2.50 TRIP_ DP_ PR1CSG 19:30 - 01:00 5.50 TRIP_ DP_ PR1CSG 01:00 - 02:00 1.00 REPAIR RIG_ PR1CSG 02:00 - 02:30 0.50 CLNOU CSG_ PR1CSG 02:30 - 04:30 2.00 CIRC CFLD PR1CSG 04:30 - 05:30 1.00 TEST_ CSG_ PR1 CSG 05:30 - 06:00 0.50 SAFETY MTG_ PR1 CSG 4/8/2005 06:00 - 10:30 4.50 PULD_ DP_ PR1TIE 10:30 - 12:00 1.50 PULD_ BHA_ PR1TIE 12:00 - 13:00 1.00 SAFETY MTG_ PR1TIE 13:00 - 15:00 2.00 PULD_ EOIP PR1TIE 15:00 - 17:30 2.50 RURD CSG PR1TIE 17:30 - 20:30 3.00 RUNPU TBG_ PR1TIE 20:30 - 21:30 1.00 RURD EOIP PR1TIE 21:30 - 22:30 1.00 RURD EOIP PR1TIE 22:30 - 02:00 I 3.501 RUNPULJ TBG I PR1TIE 02:00 - 04:00 2.00 PULD_ TBG_ PR1TIE 04:00 - 06:00 2.00 CIRC CFLD PR1TIE 4/9/2005 06:00 - 06:30 0.50 TEST_ WLHD PR1TIE 06:30 - 07:00 0.50 TEST_ CSG_ PR1TIE 07:00 - 08:00 1.00 NUND BOPE PR1TIE 08:00 - 09:00 1.00 CLEAN_ TANK PR1TIE occured. Work pipe to 110k to 225k no movement. Circulate well bore ,seen no spacer or cmt on bottoms up. PJSM: R/U Pollard ,run "Quick Temp" temp log on slickline to 10236' to 5000'. Temp log showed cmt top @ 8800' - it should be to at least the top of the liner - 5,359'. Perform Infectivity test. (1-bpm= 960 psi. 2-bpm= 1020 psi. 3-bpm=1098 psi. pumped a total of 16 bbls. ) PJSM: check for flow, pump dry job, pooh for Baker Sqz. tool. POOH w/Baker liner running tool. UD Baker running tool. P/U Baker liner top squeeze tool. RIH with Baker squeeze tool. Tag TOL@5359'. PJSM prior to pumping squeeze job. Perform formation infectivity test with rig(950psi 1 BPM). Batch mix 103bb1s 13.5ppg cement slurry for squeeze. Pump 5bbls water ahead. Test cement lines to 4500psi. Pump 50bbls 13.5ppg slurry(holding 600psi back pressure). Close choke and squeeze away 318sxs class "G" cement w/10% BA-90, 2.5% BA-56, .1 %R-3, .4% CD-32, .1 % ASA-301, 1 gphs FP-6L, and .5% SMS to yield 103bb1s 13.5ppg slurry. Pumped squeeze @2BPM. 1350psi max squeeze pressure. Held 1000psi for 9min after squeeze. Bleed off pressure and get back 15bbls mud. Drop DP wiper plug and pump down with 52bbls mud. Cont. to circ and get 15bbls cement back to surface. Set ZXP packer(good indication of packer set). POH 4" DP, lay out liner sqz tool PJSM: M/U liner top mill, RIH with 4" DP Tag top @ 5359' Trouble shoot and repair Power console. Clean out /Polish liner top @ 5359' and tie back sleeve to 5371' Mix 30 bbl. spacer and follow with 183 bbl. 6% kcl water to displace Flo-pro out of wellbore. Test Liner top to 1500 psi. (OK) PJSM to UD drill pipe. UD 4" DP as POOH w/Baker polish mill assy. Strap and drift 4 1/2" tbg. Weekly safety meeting with all personell Continue to strap and drift 4 1/2" tbg. PJSM: Rig down drill pipe handling tools and rig up Weatherford tbg running equipment. PJSM: RIH with 70jts. 4 1/2" 12.6# L-80 IBT tbg to 2983' PJSM: P/U and M/U Baker 4 1/2" chemical injection nipple with dual checks and rupture disks set to shear @ 5000 psi. PJSM: Rig up Pollard control line equipment and attach 1/4" stainless steel control line to 1nj. nipple and test to 2000 psi. PJSM: RIH with 55jts. 4 1/2" 12.6# L-80 IBT tbg to Installing injection line 2-bands perjt.Tag top of PBR(total 115 bands). PJSM:Sting into PBR ,verify with 500 psi ,Space out. Pump 30 bbl 6% KCL spacer followed by 183 bbl 6% KCL brine. Spoted congor 404 inhibitor in the annulus. Land hanger. Test hanger seals to 5000psi/10min. Test down TBG to confirm seals stabbed in. B/O and UD landing joint. Set BPV. Flush and blow down all surface lines. Printed: 1/9/2006 3:55:45 PM • ~ ..:.Marathon Qil Company Page s of 3 Operations Summalry Report Legal Well Name: NINILCHIK STATE 1 Common Well Name: NINILCHIK STATE 1 Spud Date: 3/12/2005 Event Name: ORIGINAL COMPLETION Start: 4/3/2005 End: 4/10/2005 Contractor Name: BJ SERVICES Rig Release: Group: Rig Name: BJ SERVICES Rig Number: 1 Date From - To Hours Code Code, Phase Description of Operations 4/9/2005 09:00 - 12:00 3.00 NUND ROPE PR1TIE N/D bell nipple, N/D stack, clean pits, remove mouse hole. 12:00 - 15:00 3.00 NUND BOPE PR1TIE N/D BOP. N/D DSA. 15:00 - 17:00 2.00 NUND TREE PR1TIE N/U 4" X-mas tree. 17:00 - 18:00 1.00 TEST_ TREE PR1TIE Test tree void to 5000psi/10min. Pull BPV. Install TWC. Test tree to 5000psi/10min. 18:00 - 18:30 0.50 TEST_ TBG_ PR1TIE Pull TWC. Test seals to 500psi/10min. Install BPV. 18:30 - 00:00 5.50 RURD_ RIG_ RDMO Remove bails. Sample oil from gear box and swivel. Wash TD for 500 day inspection. 00:00 - 06:00 6.00 RURD_ RIG_ RDMO R/D top drive and prep for inspection. R/D floor. Prep mud pump for inspection. 4/10/2005 06:00 - 12:00 6.00 RURD_ RIG_ RDMO Cont. R/D top drive. Clean pits. R/D rig floor. R/D top drive torque tube. Rig released to rig maintenance @ 12:OOhrs 4/09/2005. Printed: 1/9/2006 3:55:45 PM • ~ Marathon Oil Company Page 1 of 7 Operations Summary Report Legal Weil Name: NINILCHIK STATE 1 Common Well Name: NINILCHIK STATE 1 Spud Date: 3/12/2005 Event Name: ORIGINAL COMPLETION Start: 4/30/2005 End: Contractor Name: BJ SERVICES Rig Release: Group: Rig Name: BJ SERVICES Rig Number: 1 Date .From - To Hours Code Cod .Phase 4/30/2005 13:00 - 17:00 4.00 NUND TREE XMBO 5/5/2005 10:30 - 11:00 0.50 SAFETY MTG_ PR1CSG 11:00 - 12:00 1.00 RURD_ SLIK PR1CSG 12:00 - 13:00 1.00 RUNPU SLIK PR1CSG 13:00 - 13:30 0.50 RURD_ SLIK PR1CSG 5/10/2005 08:30 - 09:00 0.50 SAFETY MTG PR1 CSG 09:00 - 10:00 1.00 RURD ELEC PR1CSG 10:00 - 11:00 1.00 RUNPU ELEC PR1CSG 11:00 - 12:00 1.00 RUNPU ELEC PR1CSG 12:00 - 16:00 4.00 RUNPU ELEC PR1 CSG 16:00 - 17:00 1.00 RURD_ ELEC PR1CSG 7/16/2005 07:30 - 08:00 0.50 SAFETY MTG PATCH 08:00 - 09:00 1.00 RURD_ ELEC PATCH 09:00 - 11:30 2.50 RUNPU ELEC PATCH 11:30 - 13:00 1.50 RUNPU ELEC PATCH 13:00 - 14:00 1.00 RUNPU ELEC PATCH 14:00 - 15:30 1.50 PERF CSG PATCH 15:30 - 16:30 1.00 PERF CSG PATCH 16:30 - 17:30 1.00 RURD_ ELEC PATCH 7/20/2005 07:30 - 08:00 0.50 SAFETY MTG PATCH 08:00 - 18:00 10.00 RURD_ COIL PATCH 18:00 - 19:30 1.50 TEST BOPE PATCH 19:30 - 20:30 1.00 PUMP WTR PATCH Description ofiOperations Vetco Wellhead Service and Udelhoven crane truck on location. Held PJSM and reviewed work permit. Pulled BPV. Set 2-way check valve. NU SSV. Hydrotested tree to 5000 psi for 10 minutes. Pulled 2-way check. Sheared methanol injection nipple rupture discs at 4200 psi. RDMO Vetco and Udelhoven. Held PJSM to discuss operational plan and potential hazards. MIRU Pollard to run gauge ring in 4-1/2" monobore casing. Roundtripped 3.80' OD gauge ring on slickline. Tagged PBTD at 10,244' KB (same depth as drillers measurement of top of landing collar). RDMO Pollard slickline. Held PJSM with Expro, MOC, and Inlet Drilling personnel to discuss potential hazards, operational plan, and concurrent operations on pad. Reviewed and signed safe work permit. MIRU Expro wireline unit and crane to run a SCMT bond logging tool. MU 1-11/16" slimhole CMT tool string with weight bars. Took tool string to wellhead and installed grease head and pump-in sub to tree cap. RIH about 500' and checked tool calibration in free pipe. RIH and tagged PBTD at 10,221' MD (corrected to Reeves Array Induction open hole log run 02-Apri-2005. Pulled 200' repeat section up from 10221' MD. POOH logging CCL-GR-CBL at 1800 fpm from 10221' MD to 5150' MD (200' above liner top at 5259' MD). Good cement bond from 10221-8800' MD, no bond from 8800'-7360' MD, sporadic bond 7360'-5554' (7" casing shoe), and good bond in liner lap from 5554'-5400' MD. RDMO Expro loggers. Held PJSM with Expro, Baker, and MOC personnel to discuss hazards and operational plan. MIRU Expro Wireline. PU and RIH with 3.75" OD gauge ring, junk basket, and CCL on wireline to 8900' CBL. Had to work gauge ring through the liner top packer without much trouble. POOH and LD gauge ring and junk basket. MU, armed, and RIH with Baker composite BP (10K down, 7.5K up with carbide slips and top and bottom locking lugs) and setting tool. Correlated depth with Expro CBL. Set top of composite BP at 8730' CBL. Center of element is at 8731' CBL. PUH to record a casing collar and then RIH and tagged BP. POOH with CCL and BP setting tool. MU, armed, and RIH with 2' loaded 3-3/8" 6 spf, 60 deg phasing pert gun with CCL. Correlated depth with CBL. Perforated cement squeeze perfs 8698-8700' CBL. POOH with perforating gun. All shots fired and round. WHP increased from 0 to 150 psi while POOH. RDMO Expro Wireline. Held safety meeting with coiled tubing crew at Susan Dionne pad office Rig up BJ coiled tubing unit, flowback tanks Pressure test lines 250-4500 psig for 5 minutes. Test Blind rams 250-4500 psig. Open well- had 400 psig surface pressure. Attempt to establish injection into squeeze pers at 8698'-8700'. Pressured up to 1900 psig at too low Printed: 1/9/2006 3:56:09 PM • Marathon Oil Company Page 2 of 7 Operations Summary Report Legal Well Name: NINILCHIK STATE 1 Common Well Name: NINILCHIK STATE 1 Spud Date: 3/12/2005 Event Name: ORIGINAL COMPLETION Start: 4/30/2005 End: Contractor Name: BJ SERVICES Rig Release: Group: Rig Name: BJ SERVICES Rig Number: 1 Date... From - To Hours I Code Code Phase 7/20/2005 ~ 19:30 - 20:30 ~ 1.00 PUMP_~ WTR_ PATCH 7/21/2005 06:00 - 06:00 24.00 WAITON ORDR PATCH 7/22/2005 07:00 - 07:30 0.50 SAFETY MTG PATCH 07:30 - 09:30 2.00 WAITON EOIP PATCH 09:30 - 10:30 1.00 RURD_ ELEC PATCH 10:30 - 13:30 3.00 SETREL PLUG PATCH Description of Operations rate to measure. Monitored pressure- bled off 25 psi. Bleed pressure to zero. Repressure to 1900 psig at low rate. Monitored pressure- bled off +l-20 psi. Bleed pressure to zero. Repressure to 1883 psig. In 5 minutes pressure bled down to 1850 psig, in 10 minutes pressure bled down to 1828 psig. SDFN. Discuss options. Change in plans. Reorganize service providers. Safety Meeting with Expro and Baker to discuss hazards and planned operations Wait on crane to be moved Rig up Expro Electric line Hold toolbox talk. Go on radio silence to arm setting tool. Make up bridge plug and setting tool. Open well- had 400 psig surface pressure. Bled to zero. RIH with bridge plug. Start correlation. Notice well flowing- shut well in. Pressure built up to 1450 psig surface pressure. 13:30 - 14:30 1.00 WAITON ORDR PATCH Evaluate options- pressure built to 1850 psig. 14:30 - 15:00 0.50 SETREL PLUG PATCH Set Baker bridge plug at 8238' CBL. Well had 1850 psig. Bleed off gas head while POOH with a-line and setting tool. 15:00 - 17:30 2.50 PERF_ CSG_ PATCH RIH and perforate sq perfs 8200'-8202'. Had trouble getting guns to fire. POOH. 17:30 - 19:30 2.00 PERF_ CSG_ PATCH RIH and perforate sq perfs 7758'-7760'. POOH. 19:30 - 22:00 2.50 RUNPU ELEC PATCH Run 3.75" gauge ring, junk basket and CCL to 8238' CBL. POOH. No problems encountered. Well had 400 psig surface pressure. 22:00 - 01:00 3.00 SETREL PLUG PATCH Run Baker K-1 cement retainer and set at 8185'. POOH. Well had 1000 psig surface pressure. Fluid level at +/-1645'. 01:00 - 02:00 1.00 RURD_ ELEC PATCH RD and move out Expro and Baker. Secure well. 7/23/2005 07:00 - 07:30 0.50 SAFETY MTG_ PATCH PSJM with BJ CT and Baker 07:30 - 08:30 1.00 RURD_ COIL PATCH RU BJ coiled tubing and pressure test lines, stack to 4500 psig. 08:30 - 11:30 3.00 PATCH RIH with cement stinger on end of coiled tubing. 11:30 - 12:00 0.50 PATCH Tag retainer at 8181' CTM/ 8175' CBL. Sting in and establish circulation between squeeze perfs- 1.4 bpb @ 1800 psig; 1.25 bpm @ 1460 psig. 12:00 - 13:00 1.00 PATCH Circ and evaluate for cement squeeze. Final circ rate= 1.2 bpm @ 1550 psig. Shut down pumps. Pull out of cement retainer with excess pull. Revise cementing procedure. 13:00 - 16:00 3.00 PATCH Circ while mixing Biozan mud and cement slurry. 16:00 - 17:00 1.00 PATCH Ho{d toolbox talk to discuss revised job. Pump: 4 bbls Biozan mud, 5 bbls fresh water, 10 bbls 6% KCI, 16.5 bbls 15.8 ppg cement; shut down, stung into retainer; pump 3.9 bbls 15.8 ppg cement, 5 bbls fresh water, and 9.4 bbls Biozan mud. Lost returns and pump pressure increased with 5.3 bbls cement below retainer. Shut down pumps. Pull out of retainer and circ remaining cement slurry out of coil. Leave 2 bbls of cement on top of retainer. 17:00 - 19:00 2.00 CIRC_ CFLD PATCH Pull up hole to 7450' while circ. Circ hole clean AT 7450' with 6% KCI. 19:00 - 21:00 2.00 RUNPU COIL PATCH Pull out of hole with coiled tubing and rig down coiled tubing. Found formation chunks on retainer assembly. 21:00 - 06:00 9.00 PATCH Rig up Pollard Wireline. Run temperature survey. RDMO Preliminary estimate is that TOC is at 7772'. 7/24/2005 06:00 - 06:00 24.00 WAITON CMT_ PATCH Wait on cement 7/25/2005 07:00 - 07:30 0.50 SAFETY MTG_ PATCH Safety/Operations meeting with BJ Coiltech and Baker 07:30 - 10:00 2.50 REPAIR EOIP PATCH Unable to get electricity for Coiled Tubing- work and repair; Unable to catch prime on pump move fluid around. Printed: 1/9/2006 3:56:09 PM • ~ Legal Well Name: NINILCHIK STATE 1 Common Well Name: NINILCHIK STATE 1 Event Name: ORIGINAL COMPLETION Contractor Name: BJ SERVICES Rig Name: BJ SERVICES Date From - To Hours Code Code Phase 7/25/2005 10:00 - 11:00 1.00 TEST BOPE PATCH 11:00 - 17:00 6.001 RUNPUL COIL PATCH 17:00 - 18:00 ~ 1.00 ~ PUMP_~ CMT_ ~ PATCH 18:00 - 19:00 1.00 WAITON CMT_ PATCH 19:00 - 20:00 1.00 CIRC_ CFLD PATCH 20:00 - 21:30 1.50 RUNPU COIL PATCH 21:30 - 06:00 8.50 WAITON CMT_ PATCH 7/26/2005 07:00 - 07:30 0.50 SAFETY MTG_ PATCH 07:30 - 08:30 1.00 PULD_ BHA_ PATCH 08:30 - 09:00 0.50 TEST_ CSG_ PATCH 09:00 - 10:30 1.50 RUNPU COIL PATCH 10:30 - 15:30 5.00 DRILL CMT PATCH 15:30 - 16:30 1.00 CIRC_ CFLD PATCH 16:30 - 17:00 0.50 TEST CSG PATCH 17:00 - 18:00 I 1.001 RUNPW COIL I PATCH 18:00 - 19:00 1.00 PULD_ BHA_ PATCH 19:00 - 20:30 1.50 RUNPU COIL PATCH 20:30 - 21:00 0.50 CIRC_ CFLD PATCH 21:00 - 22:00 1.00 RUNPU COIL PATCH 22:00 - 22:30 0.50 RURD_ COIL PATCH 7/27/2005 07:00 - 07:30 0.50 SAFETY MTG_ PATCH 07:30 - 08:30 1.00 PULD_ BHA_ PATCH 08:30 - 10:00 1.50 RUNPU COIL PATCH 10:00 - 11:30 1.50 CIRC_ CFLD PATCH 11:30 - 12:30 1.00 RUNPU COIL PATCH 12:30 - 13:30 1.00 PULD_ BHA_ PATCH 13:30 - 15:00 1.50 RUNPU COIL PATCH Page 3 of 7 Spud Date: 3/12/2005 Start: 4/30/2005 End: Rig Release: Group: Rig Number: 1 Description of Operations Attempt to test upper squeeze perforations. Pumped in a 314 bpm at 1500 psig RIH with Coiled tubing to 7810'. Unable to mix cement due to broken belts on VMT. Get new belt. Mix cement at 15.8 ppg. Pump 4 bbls 15.8 ppg cement, 5 bbls fresh water, 8.1 bbls 6% KCI, 11.4 bbls of Biozan mud for contamination, 3 bbls KCI- spotting 4 bbls cement balanced plug. Shut down pump and close annulus. Sqeeze cement at 0.5 bpm. At 2 bbls pumped, pressure =700 psig. Shut down and monitor. Pressure bled to 400 psig in 8 minutes. Bleed off pressure. Monitor and wait on cement CBU POOH & RD CT. SWIFN Wait on cement Safety meeting, toolbox talk with BJ CoilTech & Baker RU Coil, PU mill and mud motor. Test stack to 4000 psig Pressure test cement squeeze to 3000 psig- good test. RIH 1-3/4" with coiled tubing- tag at 7472' Drill thru cement bridge at 7472'. RIH to 7758' Tag hard cement. Drill cement to 7780' ctm CBU at 2.5 bpm Attempt to test squeeze perfs. Stage pressure to 1500 psig- shut down. Pressure bleeding off- lost 300 psi in 1-12 min. Stage pressure to 1800 psig- pressure bleeding off- lost 350 psig in 3 min. POOH with coiled tubing while pumping 1 bpm LD Mill and motor, PU nozzle RIH with coiled tubing. Tag high at 7750'. Attempt to wash past 7750'- no success POOH with coiled tubing Rig down coiled tubing-SWIFN Safety meeting and toolbox talk PU mi11 and mud motor. Rig up injector. Pressure test to 4000 psig. RIH w/ 1-3/4" coil, mill, motor. Tag at 7776'- 4' fill. Wash to 7780' CBU at 2.5 bpm POOH with coiled tubing LD motor and mill. PU nozzle RIH with coiled tubing. Tag at 7750'- 30' from bottom. Unable to work past (8' above perfs) 15:00 - 16:00 1.00 RUNPU COIL PATCH POOh with coiled tubing 16:00 - 17:00 1.00 PULD_ BHA_ PATCH Cut off connector. Install dimple-on connector and flush wash nozzle. 17:00 - 18:00 1.00 RUNPU COIL PATCH RIH with coiled tuing. Tag at 7750'. 18:00 - 19:00 1.00 CIRC_ CFLD PATCH Attempt to wash past 7750'- unsuccessful. 19:00 - 20:00 1.00 RUNPU COIL PATCH POOH with coiled tubing 20:00 - 20:30 0.50 RURD_ COIL PATCH Rig down injector head. SWIFN 20:30 - 06:00 9.50 WAITON OTHR PATCH 7/28/2005 07:00 - 07:30 0.50 SAFETY MTG_ PATCH 07:30 - 09:00 1.50 PULD BHA PATCH 09:00 - 10:00 1.00 RUNPUL COIL PATCH 10:00 - 12:00 2.001 CIRC CFLD j PATCH SWIFN Safety Meeting and toolbox talk Cut off dimple conn, install Baker connector, test pull, pressure test to 3000. PU Cmt retainer stinger (centralized) RIH w/ cmt retainer stinger on 1/3/4" coiled tubing. Tag at 7776' CTM- no problems at 7750' Circulate- call out and wait on cementers ,Marathon Oil Company Operations Summary Report Printed: 1/9/2006 3:56:09 PM r1 Marathon 4f'Company Qpera#ons Summary Report Legal Well Name: NINILCHIK STATE 1 Common Well Name: NINILCHIK STATE 1 Event Name: ORIGINAL COMPLETION Start: 4/30/2005 Contractor Name: BJ SERVICES Rig Release: Rig Name: BJ SERVICES Rig Number: 1 Date 7/28/2005 Page4of7~ Spud Date: 3/12/2005 End: Group: From -To Hours Code Code Phase Description of Operations 12:00 - 13:00 1.00 PUMP_ CMT_ PATCH 13:00 - 14:30 1.50 PUMP CMT PATCH 14:30 - 15:00 0.501 CIRC_ CFLD PATCH 15:00 - 15:30 0.50 CIRC_ CFLD PATCH 15:30 - 16:30 1.00 RUNPU COIL PATCH 16:30 - 17:30 1.00 RURD_ COIL PATCH 17:30 - 06:00 12.50 WAITON CMT_ PATCH 7/29/2005 07:00 - 07:30 0.50 SAFETY MTG_ PATCH 07:30 - 09:00 1.50 RURD COIL PATCH 09:00 - 10:00 10:00 - 11:00 1.00 RUNPUL~COIL PATCH 1.00 DRILL_ CMT_ PATCH Mix cement- hold toolbox talk Pump 5 bbls water, 5 bbls cement, 5 bbls water, 23 bbls 6°I° KCI with coil at 7771'. Spot cement. Pull coil to 7151'. Close annulus. Start low rate, low pressure squeeze. Pump at 1/2 bpm until pressure got to 1800 psig- 2.8 bbls bumped. Shut in and monitor. Pres @ 2 min=1300, @ 5 min=1180, @ 10 min= 1160,@20 min= 1125, @30 min=1080. Bled off annulus pressure; pump Biozan contaminant to end of coil; RIH, while circ Biozan, to 7748' CTM CBU at 2.5 bpm, 3300 psig POOH RD CT SWIFN- WOC Safety meeting and toolbox talk w/ BJ & Bakerr LD gas buster, RU Coil injector, PU mill and motor, test riser to 4000 psig RIH w/mill & motor on 1-3/4" coiled tubing Tag cement at 7750' CTM, drill cement to 7780' 11:00 - 12:00 1.00 CIRC_ CFLD PATCH CBU 12:00 - 12:30 0.50 TEST_ CSG_ PATCH Attempt to test cling and sq perfs at 7758-60'. Pres up to 1500 psig- held okay. Start pressuring up to 3000 psig- Perfs broke down at 2400 psig. Pump in at 1/2 bpm @ 1600 psig 12:30 - 13:30 1.00 RUNPU COIL PATCH POOH with coiled tubing 13:30 - 14:00 0.50 PULD_ BHA_ PATCH LD mill & motor, PU centralized cement stinger 14:00 - 15:00 1.00 RUNPU COIL PATCH RIH w/ cement stinger on coiled tubing to 7780' 15:00 - 18:00 3.00 PUMP_ CMT_ PATCH Call out cementers, mix cement, hold toolbox talk 18:00 - 19:30 1.50 PUMP_ CMT_ PATCH Pump 5 bbl fresh water, 8 bbl 15.8 ppg cement, 5 bbl fresh water, and displace into coil/casing annulus- cement top at 7254'. Pull coil up to 6954'. Break circ. Shut in annulus. Start squeezing cement into perfs. Pumped 1.2 bbls of cement into perfs- pressure increased to 1800 psig. Shut down and monitor pressures- 1 min @ 1790#, 5 min @ 1775#, 10 min @ 1765#, 30 min @ 1735, 60 min @ 1717- loosing .3 psi/min. Bleed off pressure slowly. CIP@ 6:20 PM 19:30 - 20:00 0.50 PUMP_ CMT_ PATCH RIH to 7750' pumping Biozan mud to contaminate cement 20:00 - 21:00 1.00 CIRC_ CFLD PATCH Circ out excess cement and CBU 21:00 - 22:00 1.00 RUNPU COIL PATCH POOH 22:00 - 22:30 0.50 PULD_ BHA_ PATCH LD cmt stinger, RD coil injector, SWI 22:30 - 06:00 7.50 PATCH SWi for cement to cure. Will wait until 7/30/2005 to drill out and test squeeze 7/30/2005 06:00 - 06:00 24.00 WAITON CMT_ PATCH Wait on cement 7/31/2005 07:00 - 07:30 0.50 SAFETY MTG_ PATCH Safety Meeting and toolbox talk 07:30 - 09:00 1.50 PULD_ BHA_ PATCH CT maintenance, PU lubricator, PU 3.80" mill and 2-7/8" motor. Test lub to 4000 psig 09:00 - 10:00 1.00 RUNPU COIL PATCH RIH with mill and motor on 1-314" coiled tubing to 7755' CTM 10:00 - 11:00 1.00 DRILL_ CMT_ PATCH Drill cement to 7780' CTM 11:00 - 11:30 0.50 CIRC_ CFLD PATCH CBU 11:30 - 12:00 0.50 TEST_ CMT_ PATCH Test sq perfs at 7758-7780' to 3000 psig for 15 mins. 12:00 - 21:30 9.50 DRILL_ CMT_ PATCH Drill cement and retainer to 8225' CTM. 21:30 - 22:30 1.00 CIRC_ CFLD PATCH CBU 22:30 - 23:30 1.00 TEST_ CMT_ PATCH Attempt to test casing and sq perfs- bleeding off. Lubricator leaking. Bleed off pressure. Close tubing rams. Atttempt to test casing and sq perfs- pressure bleeding off. Bled down to 2100 psig. Bleed off Printed: 1/9/2006 3:56:D9 PM • Marathon Oil Company Page 5 of 7 Operations Summary .Report Legal Well Name: NINILCHIK STATE 1 Common Well Name: NINILCHIK STATE 1 Spud Date: 3/12/2005 Event Name: ORIGINAL COMPLETION Start: 4/30/2005 End: Contractor Name: BJ SERVICES Rig Release: Group: Rig Name: BJ SERVICES Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 7/31/2005 22:30 - 23:30 1.00 TEST_ CMT_ PATCH pressure. 23:30 - 01:30 2.00 RUNPU COIL PATCH POOH 01:30 - 02:00 0.50 RUNPU COIL PATCH RD, secure well ' 02:00 - 06:00 4.00 WAITON ORDR PATCH Well shut in- evaluate options. 8/1/2005 06:00 - 06:00 24.00 WAITON ORDR PATCH Evaluate options 8/2/2005 10:00 - 11:00 1.00 WAITON EOIP PATCH Wait on BJ- 11:00 - 11:30 0.50 SAFETY MTG_ PATCH Safety Meeting /toolbox talk 11:30 - 13:30 2.00 PULD_ BHA_ PATCH RU, perform maintenanc, PU 3.80" mill and motor 13:30 - 15:00 1.50 RUNPU COIL PATCH RIH w/mill and motor on 1-3/4" coiled tubing. Tag at 8226' CTM 15:00 - 16:00 1.00 DRILL_ CMT_ PATCH Drill cement and bridge plug to 8236' CTM. Lubricator leaking. 16:00 - 17:00 1.00 RUNPU GOIL PATCH POOH with coiled tubing . Shut in well. 17:00 - 18:30 1.50 REPAIR EOIP PATCH Change lubricator sections. Open well- well had 2164 psig shut in pressure- shut in for 1-1/2 hours. 18:30 - 19:30 1.00 RUNPU COIL PATCH Start bleeding pressure down and RIH 19:30 - 22:30 3.00 WASH FILL PATCH Drill cement and bridge plug at 8236' CBL and wash to 8724' CTM. Drll bridge plug at 8730'- all while holding back pressure and getting gas in returns. While pushing plug/debris downhole at 9598- choke plugged. Attempt to dislodge- unable to use second choke. After dislodging debris, start to RIH, collapsed goose neck. 22:30 - 23:30 1.00 CIRC_ CFLD PATCH CBU 23:30 - 02:30 3.00 RUNPU COIL PATCH POOH slowly, while circulating, due to damaged goose neck. At 6971' CTM, choke plugged. Unable to use second choke. Bypass choke, take returns through gas buster- well flowing. Start circulating and POOH. 02:30 - 03:30 1.00 PULD_ BHA_ PATCH At surface- shut in well with 1550 psig. Rig down coiled tubing. SW1 03:30 - 06:00 2.50 PATCH Well Shut in 8/3/2005 16:00 - 20:00 4.00 REPAIR EOIP PATCH BJ CoilTech changed out gooseneck and rebuilt flowback choke. 8/4/2005 08:30 - 14:00 5.50 MIX_ FLD_ PATCH Weaver Bros delivered Swaco mixing tank and pump. Durainey crane operator unloaded and spotted tank and pump on liner. Vac truck filled 500 bbl tank with fresh water. R&K delivered MOC choke manifold and gas buster. Set gas buster on flow back tank and secured. BJ CoilTech hauled away cement batch mixing equipment. Weaver delivered 16 pallets of KCL from MI Drilling. 14:00 - 00:00 10.00 MIX_ FLD_ PATCH ASRC roustabouts mixed 500 bbls of 9.5 bbls KCL water. 8/5/2005 07:00 - 07:30 0.50 SAFETY MTG_ PATCH Held PJSM with Baker, Durainey, BJ CoilTech, and MOC personnel to review Safe Work Permit conditions and operational plan. 07:30 - 08:30 1.00 RURD_ COIL PATCH Warm up BJ CT and pump motors. MU lubricator to injector head. 08:30 - 10:30 2.00 RURD_ COIL PATCH Cut muleshoe from end of 1-3/4" CT. MU Baker CT connector, pull test and pressure test to 3500 psi. MU Baker CT motor and 3.80 "mill with circulating sub. Take lubricator to wellhead and pressure tested to 200 psi low and 4500 psi high. Opened well with 2615 psi SICP. 10:30 - 13:00 2.50 RUNPU COIL PATCH RIH wl mill and motor on 1-3/4" coiled tubing to 800' (20 deg hole angle) pumping 0.5 BPM 9.6 ppg KCL water with FRW-14 friction reducer. Increased pump rate to 1.5 BPM while continuing to RIH. Bled off straight gas to gas buster until 16 bbls of KCL water pumped into well (equates to roughly 1050' MD fluid level). Continued RIH pumping 1.5 BPM KCL water with gas cut fluid returns. Tagged at 10215' CT MD. 13:00 - 15:00 2.00 RUNPU COIL PATCH POOH with motor and mill pumping 1.5 BPM KCL water. Returns are still heavily gas cut. 15:00 - 16:00 1.00 PULD_ BHA_ PATCH LD motor and mill. MU BJ "Tornado" reverse jetting tool and 3.80" centralizer. 16:00 - 18:30 2.50 RUNPU COIL PATCH Opened well with 2200 psi SITP. RIH to 10,204' CT MD with Tornado Printed: 1/9/2006 3:56:09 PM • Marathon 0if Company Page s of ~ Operations Summary Report Legal Well Name: NINILCHIK STATE 1 Common Well Name: NINILCHIK STATE 1 Spud Date: 3/12/2005 Event Name: ORIGINAL COMPLETION Start: 4/30/2005 End: Contractor Name: BJ SERVICES Rig Release: Group: Rig Name: BJ SERVICES Rig Number: 1 Date From - To ~ Hours I Gode ~ Code 1 Phase Description of Operations 8/5/2005 16:00 - 18:30 2.50 RUNPU COIL PATCH jetting tool pumping 9.5 ppg KCL water at 2.2 BPM. Dropped ball to engage reverse jetting. Consulted with Team and Supervisors and decided to proceed to testing well without running CBL at this time. 18:30 - 22:00 3.50 JET_ WTR PATCH POOH pumping 2.5 BPM at 70 FPM (10,200-7800'), 65 FPM (7800-6800'), 40 FPM (6800-1000'), and 50 FPM (1000'-surface). Return fluid was gas cut throughout jetting operations. 22:00 - 23:00 1.00 RURD_ COIL PATCH SI well with 1900 psi. LD lubricator and jetting BHA. Set back injector head. Secured well. Will purge coil with nitrogen and finish RDMO tomorrow. While rigging down, will also flow well through gas buster to attempt to unload fluid from wellbore. 8/6/2005 12:30 - 13:00 0.50 SAFETY MTG_ PATCH Held PJSM. 13:00 - 18:00 5.00 SAFETY MTG_ PATCH RDMO BJ CoilTech. 8/12/2005 13:45 - 15:15 1.50 FLOW_ TEST CMPFLW Opened well with 2550 psi SICP. Flow tested the well through MOC flowback iron and gas buster for 1-1/2 hrs to try to unload fluid. Estimated rate was 6-7 MMscfd based on visual and audible assessment of flow through gas buster. No fluid recovered throughout flow period. Final flowing pressure at 1500 psi. Shut well in. After15 minutes shut in period, pressure had climbed from 1500 psi to 2100 psi. Secured well. 8/13/2005 08:00 - 08:30 0.50 SAFETY MTG_ CMPFLW Held PJSM with Expro Wireline to discuss Safe Work Permit conditions and operational plan. 08:30 - 10:00 1.50 RURD_ ELEC CMPFLW MIRU Expro to run static Pressure/Temperature survey to determine static fluid level, fluid gradients, and BHP's. 10:00 - 12:00 2.00 RUNPU ELEC CMPFLW Opened well with 2544 psi SICP anf 80 deg on quick temp tool (tree gauge showed 2550 psi). RIH. Started logging down pass at 6000' with areal-time Spartec pressure-temperature tool and GR on wireline. Correlated depth with CBL GR. Recorded static fluid level at 8416' WL MD. Logged down pass to 8900' WL MD (Lowest squeeze pert interval 8698-8700'). 12:00 - 13:30 1.50 RUNPU ELEC CMPFLW POOH logging pressure-temperature from 8900'-8000'. Stopped for 5 minute bench at 8700 recording final static BHP bench of 3110 psig and max temp of 125 degrees. RIH to 8900' MD. POOH to surface. 13:30 - 15:30 2.00 RURD_ ELEC CMPFLW RDMO Expro Wireline. Secured well. 8/16/2005 09:00 - 14:00 5.00 RURD_ EOIP CMPFLW Weaver Bros. moved empty 500 bbl Rain-for-Rent tank to GO #3. ASRC vac truck moved about 400 bbl 20% KCL water from NS #1 Rain-for-Rent tank and place in tank at GO #3. Moved emptied tank to GO #3. ASRC roustabouts rigged down MOC flowback iron and gas buster to GO #3. Weaver Bros moved 500 bbl Rain-for-Rent open-top tank with about one foot of hard cement to ASRC yard for cement removal and cleaning. 8/17/2005 07:00 - 18:00 11.00 RURD_ EOIP CMPFLW Weaver Bros delivered PWS well test equipment from Anchorage. ASRC roustabouts on location to set liner under and berm around the PWS heater-separator, vent stack, generator, and flow lines. Offloaded and set PWS well test equipment. 8/18/2005 07:00 - 00:00 17.00 RURD_ EOIP CMPFLW Finished rigging up PWS flow test equipment. ASRC electrician tied in diesel generator to PWS transformer. Began flow testing well (squeeze perfs at 8698-8700' MD) at 23:00 hrs. 8/19/2005 08:00 - 08:30 0.50 SAFETY MTG_ CMPFLW Held PJSM with Expro, PWS, and MOC personnel to review Safe Work Permit conditions and operational plan. Well making 5.4 MMscfd at 1400 psi in AM. 08:30 - 10:30 2.00 RURD_ ELEC CMPFLW MIRU Expro wireline to perforate well. Spotted equipment after assessing location hazards. MU wireline valve and lubricator. 10:30 - 11:00 0.50 SAFETY MTG_ CMPFLW Held second safety meeting to prepare for arming non-SAFE Printed: 1/9/2006 3:56:09 PM Mara#hon Oil Company Operations Summary`Report Legal Well Name: NINILCHIK STATE 1 Common Well Name: NINILCHIK STATE 1 Event Name: ORIGINAL COMPLETION Start: 4/30/2005 Contractor Name: BJ SERVICES Rig Release: Rig Name: BJ SERVICES Rig Number: 1 Page 7 of 7 Spud Date: 3/12/2005 End: Group: Date From - Ta Hours Code ,Code Phase I` Description of Operations 18/19/2005 10:30 - 11:00 11:00-11:45 11:45 - 12:15 12:15 - 13:00 13:00 - 14:30 14:30 - 00:00 8/20/2005 12:00 - 12:30 12:30 - 14:00 14:00 - 16:00 16:00 - 16:30 16:30 - 17:30 0.50 SAFETY MTG_ 0.75 RUNPU ELEC 0.50 PERF_ CSG_ 0.75 RUNPU ELEC 1.50 RURD_ ELEC 9.50 FLOW_ TEST 0.50 SAFETY MTG_ 1.50 RURD_ SLIK 2.00 RUNPU SLIK 0.50 RUNPU SLIK 1.00 RURD SLIK 8/23/2005 00:00 - 18:00 18.00 FLOW TEST 8/25/2005 07:00 - 17:00 10.00 RURD_ OTHR 9/3/2005 07:00 - 07:30 0.50 SAFETY MTG 07:30 - 09:30 2.00 RURD SLIK 09:30 - 13:30 4.00 RUNPU SLIK 13:30 - 14:00 0.50 RURD SLIK 14:00 - 15:00 1.00 RURD SLIK CMPFLW perforating gun. CMPFLW Armed 25' 3-3/8" carrier and took lubricator to tree. RIH with 3.375" OD perforating gun loaded 23' with SDP-3125-311NT3, 25 gm. charges, 6 SPF on CCL. Troubleshot Expro computer software problem fort/2 hour. CMPFLW Correlated depth with CBL and Array Induction logs. Perforated 8720-8743' MD with 1775 psi SICP. CMPFLW POOH with guns for 10 minutes and SICP had increased to 2250 psi. Began flowing well while continuing to POOH with perforating guns. CMPFLW Bled pressure off of lubricator. LD perf gun and lubricator. All shots fired and round. LD wireline valve. RDMO Expro perforators. Plan is to flow test well at around 6-6.5 MMscfd without allowing FTP to drop below 1100 psi. CMPFLW Flow tested well through PWS. CMPFLW Held PJSM with Pollard, PWS, and MOC personnel to review Safe Work Permit conditions and operational plan. Well making 6.8 MMscfd at 1810 psi in AM. CMPFLW MIRU Pollard slickline unit and mast truck. MU lubricator, flow tee, and wireline valve. MU tandem quartz gauges below AD-2 tubing stop, jars, and roller stem on slickline. SI well at 13:30 hours to finish RU lubricator and valves to tree cap. Activated timers on gauges at 13:58 hrs on encoder. Took lubricator to wellhead. CMPFLW Opened well and pressure tested to 500 psi low and 2500 psi with WHP. RIH with BHA at 100 fpm. Set AD-2 stop with middle of gauge sample ports at 8690' WL MD. Sheared off of AD-2 stop. CMPFLW POOH with setting tool, jars, and roller stem. LD lubricator and tools. CMPFLW RDMO Pollard slickline. Installed and activated MOC DataTrap on tree cap flange outlet. Reinitiated flow test with target hold rate of 7.0-7.2 MMscfd throughout the weekend. Anticipate shutting in the well for a PBU sometime Monday, August 22. CMPFLW Well has been flow tested with a relatively stable rate and pressure of 6.85 MMscfd and 1900 psi FTP since perforations were added on 8/18/2005 and pressure gauges were run on 8/19/2005. Shut well in for pressure buildup at 18:00 hrs on 8/22/2005. RDMO RDMO PWS well test equipment. CMPFLW Held PJSM with Pollard and MOC personnel to review Safe Work Permit conditions and operational plan. Well has been shut in for a static PBU. CMPFLW MIRU Pollard slickline unit and mast truck to retrieve pressure bombs. RU wireline valve to swab valve. MU lubricator and GS pulling tool with spang jars. Took lubricator to wellhead and pressure test to 2500 psi with WHP. CMPFLW RIH with GS pulling tool and spang jars on slickline to 8690' MD. Engaged and released AD-2 stop with gauges. POOH at 120 fpm with gauges recording 10 min. benches at 8600', 8400', 8200', 8000', 7500', 7000', 6000', 5000', and surface. CMPFLW LD lubricator and tool string after shutting in well. Downloaded data from gauges-appears to be good data. Vetco on location to set back pressure valve. Held tailgate safety meeting. CMPFLW RU Vetco using Pollard mast truck. Pollard continued to RDMO. Vetco ran and set back pressure valve in tubing hanger. Printed: 1/9/2006 3:56:09 PM • MARATHON Oil Company,Slot #1 Ninilchik State, MARATHON Ninilchik Field,Kenai Peninsula, Alaska SURVEY LISTING Page 1 Wellbore: NS#1 Wellpath: MWD <0-10346> Date Printed: 4-Apr-2005 ~t~ RA iii i >~~ Wellbore Name Created Last Revised NS#1 21-Mar-2005 4-A r-2005 WeII Name Government ID Last Revised NS#1 24-Jan-2005 Slot Name Grid Northin Grid Eastin Latitude Lon itude North East Slot #1 2245904.5320 222422.6430 N60 8 20.1684 W151 31 22.0948 915.97S 1180.15E Installation Name Eastin Northin Coord S stem Name North Ali nment Ninilchik State 221264.0314 2246847.5560 AK-4 on NORTH AMERICAN DATUM 1927 datum True Field Name Eastin Northin Coord S stem Name North Ali nment Ninilchik Field 226657.8482 2252005.1188 AK-4 on NORTH AMERICAN DATUM 1927 datum True t$ All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Glacier 1 159.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 290.55 degrees Bottom hole distance is 4754.02 Feet on azimuth 291.13 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON O[I Company,Slot #1 Ninilchik State, MARATHON Ninilchik Field,Kenai Peninsula, Alaska SURVEY LISTING Page 2 Wellbore: NS#1 Wellpath: MWD <0-10346> Date Printed: 4-Apr-2005 ~It~ INTEQ Well ath Grid Re ort MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg de /100ft Vertical Section ft Fasting Northing 0.00 0.00 0.00 0.00 O.OON 0.00E 0.00 0.00 222422.64 2245904.53 139.00 0.70 68.70 130.00 0.29N 0.74E 0.54 -0.59 222423.39 2245904.80 167.00 0.80 68.20 166.99 0.47N 1.19E 0.27 -0.95 222423.84 2245904.97 228.00 0.60 33.20 227.99 0.89N 1.76E 0.76 -1.34 222424.42 2245905.38 257.00 0.60 347.40 256.99 1.17N 1.81E 1.61 -1.29 222424.48 2245905.66 288.00 1.30 328.30 287.98 1.63N 1.59E 2.45 -0.92 222424.27 2245906.12 349.00 2.40 307.00 348.95 2.98N 0.21E 2.10 0.85 222422.92 2245907.51 408.00 3.50 299.10 407.87 4.60N 2.35W 1.98 3.82 222420.40 2245909.19 468.00 4.90 298.00 467.71 6.70N 6.22W 2.34 8.17 222416.58 2245911.37 529.00 7.30 296.40 528.36 9.64N 11.99W 3.94 14.61 222410.88 2245914.45 590.00 10.30 295.40 588.63 13.71 N 20.39W 4.92 23.90 222402.58 2245918.70 651.00 13.30 291.20 648.34 18.58N 31.86W 5.11 36.36 222391.22 2245923.84 712.00 16.10 289.30 707.34 23.92N 46.39W 4.66 51.83 222376.82 2245929.51 773.00 19.20 289.20 765.46 30.01 N 63.85W 5.08 70.32 222359.51 2245936.01 837.00 23.00 290.20 825.16 37.79N 85.53W 5.96 93.35 222338.01 2245944.29 899.00 26.50 290.60 881.45 46.85N 109.85W 5.65 119.30 222313.90 2245953.90 963.00 30.00 292.50 937.82 58.OON 138.01 W 5.65 149.58 222286.01 2245965.69 1025.00 33.50 290.80 990.54 70.01 N 168.33W 5.83 182.19 222255.97 2245978.40 1088.00 36.70 289.10 1042.08 82.34N 202.38W 5.31 218.41 222222.21 2245991.52 1152.00 39.20 287.60 1092.54 94.72N 239.74W 4.16 257.73 222185.15 2246004.75 1215.00 41.20 288.20 1140.66 107.22N 278.43W 3.23 298.35 222146.76 2246018.14 1278.00 43.60 288.20 1187.18 120.49N 318.78W 3.81 340.79 222106.73 2246032.34 1341.00 46.50 290.20 1231.68 135.17N 360.88W 5.12 385.36 222064.98 2246047.98 1404.00 48.60 290.30 1274.20 151.26N 404.49W 3.34 431.84 222021.76 2246065.07 1468.00 50.10 290.80 1315.89 168.30N 449.95W 2.42 480.40 221976.70 2246083.16 1531.00 51.30 291.00 1355.80 185.70N 495.49W 1.92 529.15 221931.57 2246101.60 1594.00 53.50 291.30 1394.23 203.71N 542.04W 3.51 579.05 221885.45 2246120.67 1657.00 55.50 291.90 1430.82 222.59N 589.73W 3.27 630.33 221838.21 2246140.65 1685.00 56.80 291.80 1446.41 231.24N 611.31 W 4.65 653.58 221816.84 2246149.80 1782.00 57.50 293.00 1499.03 262.30N 686.64W 1.27 735.02 221742.24 2246182.58 1845.00 56.70 292.30 1533.25 282.67N 735.46W 1.58 787.88 221693.90 2246204.07 1969.00 57.40 290.60 1600.70 320.71 N 832.30W 1.28 891.92 221597.97 2246244.34 2095.00 59.90 290.00 1666.24 358.03N 933.22W 2.03 999.51 221497.94 2246283.98 2222.00 58.80 289.40 1730.99 394.87N 1036.08W 0.96 1108.76 221395.96 2246323.17 2349.00 60.60 289.10 1795.06 431.01 N 1139.59W 1.43 1218.37 221293.30 2246361.69 2476.00 60.00 288.70 1857.98 466.75N 1243.96W 0.55 1328.64 221189.79 2246399.82 2599.00 59.40 288.40 1920.04 500.53N 1344.64W 0.53 1434.78 221089.92 2246435.92 2726.00 58.90 288.40 1985.17 534.95N 1448.10W 0.39 1543.73 220987.28 2246472.71 2850.00 60.30 289.20 2047.91 569.42N 1549.34W 1.26 1650.63 220886.86 2246509.50 2976.00 59.00 289.20 2111.58 605.18N 1652.02W 1.03 1759.33 220785.03 2246547.62 3101.00 61.00 290.30 2174.07 641.76N 1753.89W 1.77 1867.56 220684.03 2246586.54 3227.00 60.10 290.10 2236.02 679.65N 1856.86W 0.73 1977.28 220581.96 2246626.79 3353.00 59.20 289.90 2299.69 716.84N 1959.04W 0.73 2086.00 220480.68 2246666.32 3479.00 60.90 291.70 2362.59 755.62N 2061.O8W 1.83 2195.17 220379.56 2246707.44 3605.00 60.70 291.70 2424.07 796.29N 2163.27W 0.16 2305.13 220278.33 2246750.46 3730.00 60.40 291.30 2485.52 836.18N 2264.55W 0.37 2413.96 220178.00 2246792.67 3856.00 59.60 290.80 2548.52 875.38N 2366.38W 0.72 2523.08 220077.10 2246834.20 3981.00 58.80 290.50 2612.53 913.24N 2466.85W 0.67 2630.45 219977.53 2246874.37 4106.00 60.70 291.00 2675.50 951.50N 2567.82W 1.56 2738.42 219877.47 2246914.95 4231.00 60.30 291.00 2737.05 990.49N 2669.39W 0.32 2847.21 219776.83 2246956.27 4357.00 59.40 290.90 2800.34 1029.44N 2771.14W 0.72 2956.16 219676.01 2246997.56 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Glacier 1 159.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 290.55 degrees Bottom hole distance is 4754.02 Feet on azimuth 291.13 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Company,Slot #1 Ninilchik State, MARATHON Ninilchik Field,Kenai Peninsula, Alaska • SURVEY LISTING Page 3 Wellbore: NS#1 Wellpath: MWD <0-10346> Date Printed: 4-Apr-2005 ~~~ ~ I~i~S INTEQ Well ath Grid Re ort MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg de /100ft Vertical Section ft Easting Northing 4484 .00 58 .90 290 .50 2865 .46 1067 .98N 2873. 13W 0.48 3065. 19 219574. 93 2247038 .44 4611 .00 58 .40 290 .30 2931 .53 1105 .79N 2974. 79W 0.42 3173. 65 219474. 18 2247078 .58 4736 .00 58 .00 290 .00 2997 .40 1142 .39N 3074. 52W 0.38 3279. 88 219375. 31 2247117 .46 4798 .00 57 .80 290 .20 3030 .35 1160 .44N 3123. 84W 0.42 3332. 40 219326. 42 2247136 .64 4861 .00 57 .00 290 .40 3064 .29 1178 .85N 3173. 62W 1.30 3385. 48 219277. 08 2247156. 20 4924 .00 55 .90 290 .80 3099 .11 1197 .32N 3222. 77W 1.82 3437. 98 219228. 37 2247175. 80 4987. 00 55.30 291 .10 3134 .70 1215 .91 N 3271. 31 W 1.03 3489. 96 219180. 27 2247195 .50 5050 .00 54 .50 291 .40 3170 .93 1234 .59N 3319. 35W 1.33 3541. 50 219132. 68 2247215 .28 5113 .00 53 .80 291 .70 3207 .82 1253 .34N 3366. 85W 1.18 3592. 56 219085. 63 2247235 .12 5176 .00 52 .30 291 .60 3245 .69 1271 .92N 3413. 64W 2.38 3642. 89 219039. 27 2247254. 77 5239 .00 50 .90 292 .00 3284 .82 1290 .25N 3459. 48W 2.28 3692. 25 218993. 87 2247274. 16 5302. 00 49. 70 292 .50 3325 .07 1308 .60N 3504. 34W 2.00 3740. 70 218949. 44 2247293. 54 5364.00 48 .50 292 .60 3365 .66 1326 .57N 3547. 62W 1.94 3787. 54 218906. 59 2247312 .50 5427 .00 47 .40 292 .50 3407 .85 1344 .51 N 3590. 83W 1.75 3834. 29 218863. 81 2247331. 43 5490 .00 46 .10 291 .90 3451 .02 1361 .85N 3633. 31 W 2.18 3880. 15 218821. 74 2247349. 75 5525 .00 45. 70 292 .00 3475 .38 1371 .25N 3656. 62W 1.16 3905. 28 218798. 65 2247359. 68 5600. 00 44. 60 291 .40 3528 .27 1390 .91 N 3706. 03W 1.57 3958. 44 218749. 71 2247380. 47 5664. 00 42. 80 290 .90 3574. 54 1406 .87N 3747. 26W 2.86 4002. 65 218708. 86 2247397. 37 5727. 00 40 .60 291 .40 3621 .57 1421 .98N 3786. 34W 3.53 4044. 56 218670. 13 2247413. 39 5790 .00 38 .80 292 .40 3670 .05 1436 .99N 3823. 68W 3.03 4084. 79 218633. 15 2247429. 25 5853. 00 35. 70 290 .20 3720.19 1450 .86N 3859. 19W 5.35 4122. 91 218597. 97 2247443. 93 5916. 00 33. 80 290 .30 3771. 95 1463 .29N 3892. 88W 3.02 4158. 81 218564. 58 2247457. 13 5977. 00 32. 70 289 .40 3822. 96 1474 .65N 3924. 34W 1.98 4192. 26 218533. 39 2247469. 22 6040. 00 30. 60 289.10 3876. 59 1485 .55N 3955. 55W 3.34 4225. 30 218502. 44 2247480. 83 6103. 00 29. 30 288 .80 3931 .18 1495 .76N 3985. 29W 2.08 4256. 74 218472. 94 2247491. 73 6167. 00 27. 80 289 .70 3987 .39 1505 .84N 4014. 17W 2.44 4287. 32 218444. 30 2247502. 47 6230. 00 26. 60 291 .10 4043. 43 1515 .87N 4041. 16W 2.16 4316. 11 218417. 55 2247513. 12 6293. 00 24. 90 289 .60 4100. 17 1525 .40N 4066. 82W 2.89 4343. 48 218392. 12 2247523. 24 6356. 00 23. 50 289 .30 4157. 63 1534 .OON 4091. 17W 2.23 4369. 30 218367. 98 2247532. 40 6419. 00 21. 90 288 .80 4215. 75 1541 .94N 4114. 14W 2.56 4393. 60 218345. 19 2247540. 86 6482. 00 20. 60 288 .60 4274 .46 1549 .26N 4135. 77W 2.07 4416. 43 218323. 74 2247548. 68 6545. 00 19. 20 289 .80 4333. 70 1556 .30N 4156. 02W 2.31 4437. 86 218303. 65 2247556. 19 6608. 00 17. 70 290 .10 4393. 46 1563 .11 N 4174. 77W 2.39 4457. 80 218285. 07 2247563. 42 6670. 00 16. 30 288 .70 4452. 75 1569 .13N 4191. 86W 2.35 4475. 92 218268. 12 2247569. 84 6733. 00 15. 60 293 .80 4513. 33 1575. 39N 4207. 98W 2.49 4493. 21 218252. 15 2247576. 47 6796. 00 14. 50 286 .90 4574. 17 1581. 10N 4223. 28W 3.33 4509. 54 218236. 98 2247582. 53 6858. 00 13. 90 287 .90 4634. 28 1585 .64N 4237. 80W 1.05 4524. 73 218222. 58 2247587. 41 6922. 00 13. 50 287 .10 4696. 45 1590 .20N 4252. 25W 0.69 4539. 87 218208. 23 2247592. 30 6984. 00 13. 30 286 .30 4756. 77 1594 .33N 4266. 01 W 0.44 4554. 20 218194. 57 2247596. 74 7046. 00 13. 00 283 .30 4817. 14 1597. 94N 4279. 65W 1.20 4568. 23 218181. 03 2247600. 66 7109. 00 12. 60 291 .40 4878. 58 1602. 08N 4292. 94W 2.92 4582. 13 218167. 83 2247605. 11 7172. 00 12. 60 290 .90 4940. 06 1607. 04N 4305. 76W 0.17 4595. 87 218155. 13 2247610. 36 7235. 00 12. 30 291 .80 5001. 58 1611 .98N 4318. 41 W 0.57 4609. 45 218142. 60 2247615. 59 7298. 00 12. 20 291 .70 5063. 15 1616. 93N 4330. 82W 0.16 4622. 82 218130. 30 2247620. 83 7360. 00 11. 70 292 .10 5123. 80 1621. 72N 4342. 73W 0.82 4635. 65 218118. 50 2247625. 89 7424. 00 10. 80 291 .70 5186. 57 1626. 38N 4354. 32W 1.41 4648. 14 218107. 03 2247630. 81 7487. 00 9.30 291 .20 5248. 60 1630. 40N 4364. 55W 2.38 4659. 13 218096. 89 2247635. 07 7551. 00 8.80 289. 60 5311. 81 1633. 91 N 4373. 98W 0.87 4669. 19 218087. 54 2247638. 80 7614. 00 7.30 285 .90 5374. 19 1636. 63N 4382. 37W 2.52 4678. 00 218079. 22 2247641. 71 7677. 00 6.10 283 .90 5436. 76 1638. 53N 4389. 47W 1.94 4685. 32 218072. 17 2247643. 77 7740. 00 4.80 285 .10 5499. 47 1640. 02N 4395. 27W 2.07 4691. 26 218066. 41 2247645. 40 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Glacier 1 159.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 290.55 degrees Bottom hole distance is 4754.02 Feet on azimuth 291.13 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Company,Slot #1 M Ninilchik State, MARATHON Ninilchik Field,Kenai Peninsula, Alaska • SURVEY LISTING Page 4 Wellbore: NS#1 Wellpath: MWD <0-10346> Date Printed: 4-Apr-2005 ~~~ INTEQ Well ath Grid Re ort MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg de /100ft Vertical Section ft Easting Northing 7803. 00 3.20 288 .10 5562 .31 1641 .25N 4399. 48W 2.56 4695. 65 218062. 22 2247646. 73 7865. 00 2.50 289 .70 5624. 24 1642 .24N 4402. 40W 1.14 4698. 73 218059. 33 2247647. 79 7927. 00 1.80 286 .20 5686. 19 1642 .97N 4404. 61 W 1.15 4701. 05 218057. 14 2247648. 56 7989. 00 1.20 294 .40 5748.17 1643 .51 N 4406. 13W 1.03 4702. 67 218055. 62 2247649. 14 8114. 00 1.20 301 .90 5873. 14 1644 .74N 4408. 44W 0.13 4705. 26 218053. 35 2247650. 42 8240. 00 1.10 304 .80 5999. 12 1646 .13N 4410. 55W 0.09 4707. 72 218051. 27 2247651. 86 8365. 00 1.10 317 .60 6124. 10 1647 .70N 4412. 35W 0.20 4709. 96 218049. 51 2247653. 47 8492. 00 1.40 316 .30 6251. 06 1649. 72N 4414. 24W 0.24 4712. 44 218047. 66 2247655. 54 8618. 00 1.50 321 .50 6377. 02 1652. 13N 4416. 33W 0.13 4715. 24 218045. 63 2247657. 99 8744. 00 1.70 318 .80 6502. 98 1654. 83N 4418. 59W 0.17 4718. 30 218043. 43 2247660. 74 8869. 00 1.80 325 .00 6627 .92 1657 .83N 4420. 93W 0.17 4721. 55 218041. 16 2247663. 79 8931. 00 1.90 327 .90 6689. 89 1659 .50N 4422. 04W 0.22 4723. 17 218040. 09 2247665. 48 9057. 00 2.10 333 .90 6815. 81 1663 .34N 4424. 16W 0.23 4726. 51 218038. 05 2247669. 38 9120. 00 2.30 338 .50 6878. 76 1665 .55N 4425. 14W 0.42 4728. 20 218037. 13 2247671. 61 9246. 00 2.00 324 .70 7004. 67 1669 .70N 4427. 33W 0.47 4731. 71 218035. 03 2247675. 81 9372. 00 2.10 330 .40 7130. 59 1673 .50N 4429. 74W 0.18 4735. 30 218032. 71 2247679. 66 9497. 00 2.10 341 .90 7255. 51 1677 .67N 4431. 59W 0.34 4738. 49 218030. 97 2247683. 87 9616. 00 2.40 343 .50 7374. 42 1682 .13N 4432. 97W 0.26 4741. 35 218029. 68 2247688. 36 9692. 00 2.60 349 .90 7450. 35 1685 .35N 4433. 73W 0.45 4743. 19 218029. 00 2247691. 60 9747. 00 2.70 354 .00 7505. 29 1687 .87N 4434. 08W 0.39 4744. 41 218028. 71 2247694. 13 9804. 00 2.70 356 .90 7562. 22 1690. 55N 4434. 29W 0.24 4745. 54 218028. 56 2247696. 81 9935. 00 2.50 355 .00 7693. 09 1696. 47N 4434. 71 W 0.17 4748. 01 218028. 28 2247702. 74 10062 .00 2.40 358 .00 7819. 97 1701. 89N 4435. 04W 0.13 4750. 23 218028. 07 2247708. 17 10188.00 2.30 6.30 7945. 87 1707. 04N 4434. 86W 0.28 4751. 86 218028. 37 2247713. 31 10250.00 2.60 4.40 8007. 81 1709. 68N 4434. 61 W 0.50 4752. 56 218028. 68 2247715. 94 10286 .00 2.50 3.60 8043. 77 1711. 28N 4434. 50W 0.29 4753. 02 218028. 83 2247717. 54 10346 .00 2.50 3.60 8103. 72 1713. 89N 4434. 34W 0.00 4753. 78 218029. 05 2247720.14 All data is in Feet unless otherv/ise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Glacier 1 159.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 290.55 degrees Bottom hole distance is 4754.02 Feet on azimuth 291.13 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Company,Slot #1 Ninilchik State, MARATHON Ninilchik Field,Kenai Peninsula, Alaska • SURVEY LISTING Page 5 Wellbore: NS#1 Wellpath: MWD <0-10346> Date Printed: 4-Apr-2005 INTEQ Comments MD ft TVD ft North ft East ft Comment 10346.00 8103.72 1713.89N 4434.34W Pro'ection to TD All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Glacier 1 159.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 290.55 degrees Bottom hole distance is 4754.02 Feet on azimuth 291.13 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated ~~M MARATHON r~ ~J Marathon Oil Company May 9, 2005 Alaska Oil & Gas Conservation Commission Attn: Howard Oakland 333 W. 7~' Avenue, Suite 100 Anchorage, AK 99501 RE: Marathon Ninilchik State #1 )'~. Y~I CONFIDENTIAL ~r-~ Dear Mr. Oakland: • Alaska Asset Team Northern Business Unit P.O. Box 3128 Houston, TX 77253 Telephone 713-296-2384 Fax 713-499-8504 CERTIFIED MAIL S1v - 13 ~ -- ~~S'Y9' -0~ ~~ S-oa3 ~" ~ 3 ~ c~ The following confidential digital well data are enclosed for the above referenced well. NS #1 AOGCC Approved Drilling Permit ...............................................................................digital As-Built Plat ..................................................................................................................digital Daily Drilling Reports ....................................................................................................digital Directional Survey .........................................................................................................digital EPOCH Report/Data ......................................................................................................digital One CD containing digital well logs and above data (directory list attached) ................digital Please indicate your receipt of this data by signing below and returning one copy to me at the letterhead address. Thank you, ~D' Kaynell Zeman Geological Technician ~~~/ Received by: Date: I ( I'~~ ~i ~~` Enclosure ~ O l -- p ~,3 Q~ ~ ~,~ • MARATHON OIL CO. NINILCHIK STATE 1 CD Contents As-Built Plat directory: ~"NS #1 McLane AS-Built Plat 3-8-05.pdF Daily Drilling Report directory: N51 Daily Drilling Repark.kiF Directional Survey Data directory: marathon_ninilchik_state_1_tvd_dir_sur.las ~NS1 Surveys final.~cls ~nsl_dir final.prn Drilling Permit directory: ~- NS #1 AOGCC Approved Permik.pdf Precision Run 1 directory: ', Ij~jDMLData FINAL_Ninilchik State 1 Run2_complete.dpk ~fFINAL_Ninilchikstate 1_Run2~lotked.dpk unslr2 maindepth,las S ~0 1 ~ ~ ~ ~~ ~nsir2 maindepth_ALL.Ias Precision Run 1/DNII.,Data directory: [~ Nsl.dbf ~J nsl.hdr M1ls 1 . mdx NS 1 _SCL. DBF hlsi SCL.MDX ~J N51 _tvd. dbF Nsl_tvd.mdx ~f nslr.dbF ns 1 r. mdx Precision Run 2 directory: C 1~~~~ ~FINALS_Marathon Ninilchik5tate 1_Run 1_complete.dpk ~FINALS_Marathon_Ninilchik5tate 1_Run l~lotted.dpk _ ~NSl_MAINDEPTH.Ias ~ p ~ _ S S(~ q C9~r S~/ r°aor ~eNJ~ ~ r~ ~ n~,u c~' • MARATHON OIL CO. NINILCHIK STATE 1 CD Contents EPOCH Mud Log/Morning Reports directory: ~200503t4.htm ': ~20050315.htm '; ~20050316.htm ~]20050.317.htm s ~20050318.htm ~20050319.htm '~20050320.htm ~f20050321.htm `~20090322.htm ~20050323.htm ~20050324.htm $~20050325.htm ~20050326.htm ~20050327.htm :: $~20050328.htm ~20050329.htm :.. ~20050330.htm ~20050331.h[m ~]20050401.htm ': ~20050402.htm '. ~20050403.htm $~20050404.htm ~20050405.htm ~20050406.htm : ~20050407.htm ~]20050406.htm EPOCH Mud Log\PDF Files directory: "''° rt N51 DD,pdF ~= N51 ML MD,pdf ~- N51 ML_TVD,pdF EPOCH Mud Log\Remarks File directory: !~~~~ ~•_ NS #1 Remarks,dat ';;, "~,,;~NS #1 Remarks,dac EPOCH Mud Log\Well LAS File directory: N51 Final.las EPOCH Mud Log\Well Report directory: '~',,,N51 Sample_Manifest,do~ ~,~Well Report N51.doc ,~ ~_ ° .~ ~, ~ a ~aa °^i~ , ~ FRANK H. MURKOWSKI, GOVERNOR ~ult~-7~ OIIt ~ ~ ~~ 333 W. 7"' AVENUE, SUITE 100 CO1~SI'~iRQA'rIO1Q COMl-IISSIOI~T ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 ' FAX (907)276-7542 Willard Tank Advanced Senior Drilling Engineer Marathon Oil company P.O. Box 3128 Houston, TX 77253 Re: Ninilchik State #1 Marathon Oil Company Permit No: 205-023 Surface Location: 924' FNL, 1172' FWL, SEC. 34, T1N, R13W, S.M. Bottomhole Location: 721' FSL, 3215' FEL, SEC. 28, T1N, R13W, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty-four (24) hours notice for a representative of the Commission t tness any required test. Contact the Commission's petroleum field inspector at (907) 659- 07 (pager). DATED this, day of February, 2005 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. Worldwide Drilling North America M Marathon P.o. Box 3128 MARATHON Oil Company Houston, TX 77253-3128 Telephone 713-629-6600 Fax 713-499-6737 February 11, 2005 John Norman Commissioner - ~ '~w`"` State of Alaska Alaska Oil & Gas Conservation Commission - _ ``~~~~ 333 West 7~" Ave, Suite 100 Anchorage, AK 99501 Reference: Drilling Permit Application Field: Ninilchik Well: Ninilchik Unit -Ninilchik State #1 Dear Mr. Norman Enclosed please find the PERMIT TO DRILL application, along with the associated attachments and filing fee of $100. The intent is to drill a Tyonek exploitation well. If you require further information, I can be reached at 713-296-3273 or by a-mail at wjtank~ marathonoil.com. Sincerely, ~~~'~~~ Willard J. Tank Advanced Senior Drilling Engineer Enclosures ~~ ~. Z j2zl ~~ ~ STATE OF ALASKA A,. KA OIL AND GAS CONSERVATION CO~SSION PERMIT TO DRILL 20 AAC 25.005 ia. Type of Work: Drill Q Redrill 1b. Current Well Class: Exploratory Development Oil Multiple Zone / Re-entry ~ Stratigraphic Test ~ Service ~ Development Gash Q Single Zone 2. Operator Name: 5. Bond: Blanket / Single Well ~ 11. Well Name and Number: Marathon Oil Company Bond No. 5194234 Ninilchik Unit -Ninilchik State #1 3. Address: 6. Proposed Depth: ~ ~ 12. Field/Pool(s): P.O. Box 3128, Houston, TX 77253 MD: 10,343 TVD: 8;100 Ninilchik Unit.: 4a. Location of ell (Governmental Section): 172' FWL S rf ~~FNL S 34 T1 N R13W 1 S M ~~ 7. Property Designation: ADL 38 Tyonek Pool u ace: , , , ec. , , , . . Z 9180 Z ,.y Top of Productive Horizon: ~ 8. Land Use Permit: 13. Approximat pud Date: .~ 533' FSL, 2,685' FEL, Sec. 28, T1 N, R13W, S.M. Februa 28, 05 Total Depth: 9. Acres in Property: 14. Distan Nearest 721' FSL, 3,215' FEL, Sec. 28, T1 N, R13W, S.M. 4,607 ~ Property: 1,500 ft (UA #2-04) 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well Surface: x - 222,422.643 y - 2,245,904.532 ~ Zone - 4 (Height above GL): (21' AGL) 169 feet ~ Within Pool: 5,500 ft. to GO #3 16. Deviated wells: Kickoff depth: 250 feet - 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 60 degrees Downhole: 3,875 Surface: 2,070 ~ 18. Casing Program: Setting Depth Quantity of Cement Size Specifications Top Bottom c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 20" 133 K-55 PE 100' 0' 0' 121' 121' 12 1/4" 9 5/8" 40 L-80 BTC 1,748' 0' 0' 1,769' 1,500' 387 sacks 8 1/2" 7" 26 L-80 BTC 5,532' 0' 0' 5,553' 3,500' 391 sacks ~" 6 1/8" 4 1/2" 12.75 L-80 Hydril 533 4,993' 5,350' 3,355' 10,343' 8,100' 349 sacks 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): .Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee / BOP Sketch / Drilling Program / Time v. Depth Plot Shallow Hazard Analysis Property Plat /^ Diverter Sketch Q Seabed Report ~ Drilling Fluid Program Q 20 AAC 25.050 requirements.. 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Willard J. Tank Title Advanced Senior Drilling Engineer Signature Phone 713-296-3273 Date February 11, 2005 Commission Use Only Permit to Drill ~~_dZ~ API Number: c/ X3 3' ~~ 9~~a Permit Approval.. See cover letter for other uirements re Number: 50- , T Date: ~.. ~-3 d q . Conditions of approval Sa es r quired Yes ~ No ~ Mud log required Yes ~ No dro ulfide measures Yes ~ No ~ Directional survey required Yes ~' No Other. 5 ~ - ~ L S~JG~ ~ S it , APPROVED BY ~~ A d b H MISSION D t pp ve e: a Forf}Yf0-401 Revised 06/200--- ~~ ~ ~ ~ ~~ ~ ~ ' Submit inDuplicate • • / ~ MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Ninilchik Unit Ninilchik State #1 Original 2J11 /05 Originator: W.J. Tank Drilling Superintendent: P.K. Berga North America Drilling Manager: B.J. Roy Page 1 of 13 • • Table of Contents General Well Data ................................................................................................................................................................... 3 Geologic Program Summary ................................................................................................................................................... 3 Summary of Potential Drilling Hazards .................................................................................................................................... 4 Formation Evaluation Summary .............................................................................................................................................. 4 Drilling Program Summary ...................................................................................................................................................... 5 Casing Program ....................................................................................................................................................................... 5 Casing Design ......................................................................................................................................................................... 5 Maximum Anticipated Surface Pressure ................................................................................................................................. 5 BOPE Program ........................................................................................................................................................................ 5 Wellhead Equipment Summary .............................................................................................................................................. 5 Directional Program Summary ................................................................................................................................................ 5 Directional Surveying Summary .............................................................................................................................................. 5 Drilling Fluid Program Summary ............................................................................................................................................. 5 Drilling Fluid Specifications ...................................................................................................................................................... 5 Solids Control Equipment ........................................................................................................................................................ 5 Cement Program Summary ..................................................................................................................................................... 5 Bit Summary ............................................................................................................................................................................ 5 Hydraulics Summary ............................................................................................................................................................... 5 Formation Integrity Test Procedure ......................................................................................................................................... 5 Page 2 of 13 • • General Weii Data Well fdarrse i hik State #1 Lea. Surface Location. 9 ' FNL, 1,172' FWL, Sec. 34, Ti N, R13W, S.M. WBS Code DX.04.10986.CAP.DRL Sbt/Pad Ninilchik State Pad Field Ninilchik Unit Spud Date 2/28/05 (est.) KB Elev. 169 ~ - Comity/Province Kenai Peninsula AP4 No. Ground Level Elev. 148 State /Country Alaska WeU Class Development Perot. Qatum KB Total MD 10,343' Rfg Contractor Glacier Drilling Water Qepth WA Total TVD 8,100' - Rig Name #1 Water Protectiart Depth Comments: Geologic Program Summary Formatbn MD - RKB ft TVD - RKB ft) Pore Pressure i Pore Pressure Li Fluid Beluga (Not a Prod Target) 1,504 1,350 8.46 ~ Sandstone Gas/Water Tyonek (Target) 5,783 3,675 9.20 Sandstone Gas Tyonek T-3 (Target) 8,042 5,799 9.20 ~ Sandstone Gas Comments: Surface Locat~rt Coordinates From Lease/Biock Lines 92 FNL, 1,172' FWL, Sec. 34, T1 N, R13W, S.M. Latitude 08' 20.168" N L.tN'tgltude 151 ° 31' 22.095" W UTM. North. (1O 2,245,904.532' UTM East (x) 222,422.643' Tolerance Depth ~ D~ aCern~tlt #t Directional Target MD ft TVD ft Location +AU-5 +Ef-W Tolerance (ftJ Tyonek 5,783 3,675 533' FSL, 2,685' FEL, Sec. 28, Ti N, R13W, S.M. 1,457 -3,857 Circle 250' radius Tyonek T-3 8,042 5,799 721' FSL, 3,215' FEL, Sec. 28, T1N, R13W, S.M. 1,645 -4,387 Circle 250' radius TD 10,343 8,100 721' FSL, 3,215' FEL, Sec. 28, T1 N, R13W, S.M. 1,645 -4,387 Circle 250' radius Comments: Page 3 of 13 • • Summary of Potential Drilling Hazards Hazard Event Discussion Bit or BHA balling in surface hole Maintain high pump rates to keep bit and BHA clean. Use extra circulation time if necessary. Torque concerns in intermediate and roduction hole sections Use good hole cleaning techniques with high pump rates. Add lubricant where necessary. Comments: Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the drillers dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No H2S is anticipated. ~ Gas sands will be encountered from +/- 1,833' MD (1,532' TVD) to total depth of the well. These sands will run from ~ slightly depleted to slightly above normal pressure. The Flo-Pro mud system that will be properly weighted to hydraulically control all sands and lost circulation materials will be available on location, if required. Formation Evaluation Summary Irttervat LW D Electric Logs 1~sut Lo{~ Surface None None None 0' -1,769' MD Intemted'oate None Reeves Quad Combo on shuttle. Pull GR- Basic with GCA, shale density, temperature in and out, 1,769' - 5,553' MD Neutron to surface inside casin sample collection (10' samples). Production None Reeves Quad Combo. Schlumberger ~ Basic with GCA, shale density, temperature in and out, 5,553' - 10,343' MD VSP/checkshot. Schlumberger dipole sample collection (10' samples). sonic from TD to surface. Completion N/A GR, CCL, CBL N/A Coring Requirements: None. Comments: Page 4 of 13 Drilling Program Summary CONDUCTOR: 1. Actual 20" conductor depth from driving operations was 60 ft. RKB. 2. Move in and rig up rotary drilling rig. PU 17 1/2"bit and collars. 3. Drill to +/- 120' RKB. POOH. 4. PU hammer. Drive 20" conductor to depth. RD hammer. 5. Install starting head 20" SLC x 21 1!4", 2M flanged. 6. Nipple up 21 1/4", 2M diverter, 16" diverter valve, and 16" diverter line. ~.! 7. Function test diverter and diverter valve. SURFACE: 1. Drill a 12 1/4" hole to 1,769' MD (1,500' TVD) per the directional plan. 2. Run and cement 9 5/8" casing. 3. Cut off 95/8" casing. ND diverter. 4. Install 9 5/8" slip lock connection X 11" 5M flanged multibowl wellhead. 5. NU 11" 5M X 13 5/8" adapter spool. NU 13 5/8" 5M BOP'S. Test BOP's and choke manifold to 250/2,500 psi. ~ 6. Set wear bushing. Test surface casing to 2,500 psi INTERMEDIATE: 1. PU 8 1/2" PDC bit and directional BHA. Drill out float equipment and 20' of new formation. CBU. 2. Test shoe to leak off. Estimated EMW is 19.0 ppg. ~ 3. Drill 8 1/2" directional hole to 5,553' MD (3,500' TVD) as per directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. ~,, 5. RU logging company. Run open hole logs on drill pipe utilizing the shuttle system. TOOH with logging tool. Pull wear bushing. 6. Change out pipe rams with 7" casing rams in single ram. Run test plug and test casing rams to 2,500 psi. /` 7. Run and cement 7" casing. Land hanger in multibowl wellhead. 8. Back out landing joint. Change out 7" casing rams with pipe rams. Run test plug and test BOP's to 250/2,500 psi. 9. Set wear bushing. Test intermediate casing to 2,500 psi. PRODUCTION: 1. PU 6 1/8" PDC bit and directional BHA. Drill float equipment and 20' of new formation. CBU. 2. Test shoe to leak off. Estimated EMW 17.0 ppg. 3. Drill a 6 1/8" hole to an anticipated TD of 10,343' MD (8,100' TVD) as per the directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. ~, 5. RU logging company. Run open hole logs as per plan. RD logging company. 6. TIH w/ 6 1/8" tri-cone bit to TD for wiper trip. TOOH and laydown BHA and drill pipe. Pull wear bushing. 7. Run 4 1/2" Hydril 533 casing liner with hanger and liner hanger packer on drill pipe to TD. On bottom reciprocate and rotate liner while circulating the hole. Cement casing as per the attached cementing program, while reciprocating and rotating liner, displacing cement with gelled KCI. Bump plug with 500 psi over displacement pressure. 8. Set liner hanger and packer (liner top at approx. 5,350' MD (3,355' TVD), disconnect from liner, circulate hole clean. TOOH. 9. PU mill for 4 1/2" along with string mill for 7" casing. Make cleanout trip to top of 4 1/2" liner with mill combo on drill pipe. 10. Polish 4 1/2" liner seal bore. TOOH laying down. 11. Run 4 1/2" tubing with seal unit. Displace hole with 6 % KCL. Space out tubing and land hanger. ND BOP, NU tree and test to 5,000 psi. ~ 12. Rig down and move out drilling rig. COMPLETION: Completion will be done without a rig. Page 5 of 13 • • Casing Program MD ft Connection Casing Size (in) T Bottortt Weight bs/ft) Grade T O. D. in Makeup Torque ft-lbs Hole Slze (in m ~ .~ ^ 95/8 Surface 1,769 40 L-80 BTC 10.625 N/A' 121/4 5,750 3,090 916 7 Surface 5,553 26 L-80 BTC 7.656 N/A' 81/2 7,240 5,410 667 41/2 .,~r9011 10,343 12.75 L-80 Hydri1533 4.926 13,120 61/8 8,430 7,500 288 5 3S a 1~1~ Comments: Make-up torque shown for the Hydril 533 is 80% of yield. The final make up torque for the liner should be above any potential torque that would be used to release the running tool from the hanger. See liner running procedure for more details. The make up of the buttress connection will be to the proper mark. Casino Design casing shoe F Casir-g Siae ut) 1ilteigt-t (IhJft Grads Setting Depth (TVD) Mud Wt When Set ILY ) Frac. Grad Ib/ Form Press Ib1 Maximum Surface Pressure i) °D F' 9 5/8 40 L-80 1,500 9.4 19.0 8.46 760 3.63 3.31 3.85 7 26 L-80 3,500 9.8 17.0 8.46 2,070 2.28 2.44 2.78 4 1 /2 12.75 L-80 8,100 9.8 17.0 9.20 2,070 2.18 1.81 1.89 Comments: Maximum Anticipated Surface Pressure Size fn Setting Depth TVD ft MAWP' MASP" psi MudtGas 13atto 9 5/8 1,500 3,939 760 30/70 7 3,500 4,995 2,070 ~ 30/70 41/2 8,100 4,995 2,070 30/70 MAWP =Maximum allowable working pressure *' MASP =Maximum anticipated surface pressure Comments: Page 6 of 13 • • MASP /MAWP CALCULATIONS: Surface casing: 9 5/8" (1.769' MD, 1.500' TVDI MASPf~ _ ((Fracture gradient at shoe + S.F.) x .052 x TVD~,~) -Hydrostatic pressure of gas column at the shoe. MASPf~ _ (19.0 ppg + 0.5 ppg) x .052 x 1,500' - (.1 psUft x 1,500') MASPrr~ = 1,521 pSi - 150 psi MASP~~ = 1,371 psi. MASPbnp = BHP„ i,ae cd -Hydrostatic pressure of mud portion -Hydrostatic pressure of gas portion MASPbnp = (8.46 ppg x .052 x 3,500')- (0.3 x 9.8 ppg x .052 x 3,500') - (0.7 x 0.1 psi/ft x 3,500') MASPbnp = 1,540 psi - 535 psi - 245 psi MASPbnp = 760 psi MASP =MASPbnp = 760 psi MAW P = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAW P = (0.7 x 5,750) - (9.4 - 8.3) x .052 x 1,500' MAWP = 4,025 psi - 86 psi = 3,939 psi Intermediate casina: 7" (5.553' MD. 3,500' TVD) MASPr,~ _ ((Fracture gradient at shoe + S.F.) x .052 x TVDsn~) -Hydrostatic pressure of gas column at the shoe. MASP~~~ _ (17.0 ppg + 0.5 ppg) x .052 x 3,500' - (.1 psUft x 3,500') MASP~~ = 3,185 psi - 350 psi MASP~~ = 2,835 psi. MASPbnp = BHPopa„ nas rd -Hydrostatic pressure of mud portion -Hydrostatic pressure of gas portion MASPbnp = (9.20 ppg x .052 x 8,100') - (0.3 x 9.8 ppg x .052 x 8,100') - (0.7 x 0.1 psi/ft x 8,100') MASPbnp = 3,875 psi -1,238 psi - 567 psi - MASPbnp = 2,070 psi MASP =MASPbnp = 2,070 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAW P = (0.7 x 7,240) - (9.8 - 9.4) x .052 x 3,500' MAWP = 5,068 psi - 73 psi = 4,995 psi Production liner: 4 1/2" (Top - 5.350' MD, 3.355' TVDI (Bottom -10.343' MD, 8,100' TVD) MASP = MASP9 ~e• = 2,070 psi MAW P = MAW Py y8• = 4,995 psi Page 7 of 13 • BOPE Program casing. Test Test C Test Fluid Pressure Size MAWP MASP Press Densliy BOPS LovdHtgh ~1 (~) Vii) (I~) Ib/ 1 Slav & Ratir-g , (1) 13-5/8" 5M annular (1) 13-5l8" 5M pipe ram Surtace 9 5/8 3,939 760 2,500 g.q (1) 13 5/8" 5M blind ram 250/2,500 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1} 13-5/8" 5M pipe ram (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Intermediate 7 4,995 2,070 2,500 9.8 (1) 13 5/8" 5M blind ram 250/2,500 (1) 13-518" 5M drilling spool with 3-118" 5M outlets (1) 13-5/8" 5M pipe ram (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram (1) 13 5/8" 5M blind ram Production Liner 4 1/2 4,995 2,070 2,500 g.g 25012,500 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-518" 5M pipe ram Comments: Blowout Preventers ~ ~ The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top, a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets, and a 13-5/8" x 5000 psi single pipe ram. a- The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and avacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. Casing Test Pressures Casing test pressures are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back-up unless otherwise noted. Page 8 of 13 • Wellhead Equipment Summary • Componont Description Mang Typp~ Casing Head 11" 3M X 9-5/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 103/4" x 7" Fluted Mandrel Tubing Head 11" 3M Studded Bottom X 11" 5M Flg Top, W/ 2, 2-1/16" 5M Studded Outlets, 11" x 4 112" Manual Slip U,AA,PSLI,PR1 Adapter Flange 11" 5M X 4-1/16" 5M W/ Seal Pocket and 3" H BPV Threads Comments: Directional Program Summary Build Turn Coardktate~ Sec. No. QescripttOn MD (ft) TVD (ft) Rate (°/100') Rate (°/100') Dogleg (°/100') Inclination (deg) Az~nuth O +td/-S ft +Ef-VN (ft VS (ft) 1 Tie On 0 0 0 0 0 0 290.55 0 0 0 2 KOP 250.00 250.00 0 0 0 0 290.55 0 0 0 3 Build up Section 4.00 0 4.00 290.55 4 End of Build 1,750.00 1,490.49 4.00 0 4.00 60.00 290.55 251.40 -670.62 716.20 5 Hold Section 0 0 0 60.00 290.55 8 End of Hold 4,679.02 2,955.00 0 0 0 60.00 290.55 1,141.81 -3,045.81 3,252.80 7 Drop Section -2.00 0 2.00 290.55 8 End of Drop 7,679.02 5,435.98 -2.00 0 2.00 0.00 290.55 1,644.62 -4,387.06 4,685.20 9 TD 10,343.04 8,100.00 0 0 0 0.00 290.55 1,644.62 -4,387.06 4,685.20 Comments: Vertical section calculated from a reference azimuth of 290.55° taken from surface location to bottom hole location. ~' Potential Well Interference: Well Distance (ft) Depth (MDl Grassim Oskolkoff #3 5,523.60 10,315.04 No serious interference exists. See attached directional plan and anticollision analysis for more details. Page 9 of 13 • • N_ t vd O r N 2 H West(-)/East(+) (1500ftln] + L C O Z t O Directional Surveying Summary Interval MWD Survey Magnetic Multishot Gyro Multishot Comments 0 - 1,769' X 1,769' - 5,553' X 5,553' - 10,343' X Comments: Drilling Fluid Program Summary Interva l - ND Minimum Inventory From To Density Gel (ft) (ft) (Ib/gal) Fluid Description Additives Viscosifier Barite Gel, Gelex, Soda Ash, Caustic, Barite, Polypac 0 1,500 8.6 - 9.4 Gel / Gelex Spud Mud Supreme UL, Sodium Meta Bisulfate Flo-Vis, Polypac UL, KCI, SafeCarb 10, Asphasol 1,500 3,500 9.4 - 9.8 6% Flo-Pro w/ Safecarb Supreme, Lubetex, Caustic, Conqor 404, Sodium _ Meta Bisulfate, Klagard ~ Flo-Vis, Dual Flo, KCI, Greencide 25G, SafeCarb 3,500 8,100 9.4 ~9.8 6% Flo-Pro w/ Safecarb 10, Barite, Caustic, Conqor 404, Sodium Meta ~.~- Bisulfate, Klagard, Lubetex, Asphanol Supreme Comments: See mud prognosis for details. Sized CaCO3 (SafeCarb) will be used to control leakoff. Page 10 of 13 Vertical Section at 290.55° [2500fUin] • • Drilling Fluid Specifications 1tat~tvsl ~ TVD LSRV From ft - Ta ft Density (Ib/~I) Vis (seclgt) 1 min (IbJitmfia) PV (cP) YP (Ib/100 fi~ Fluff (cc) t?riU Solids (°6 0 1,500 8.6 - 9.4 60 - 100 NIA 25 - 35 NC -10/12 +J- 9.5 < 7 1,500 3,500 9.4 - 9.8 ~ > 40,000 8 - 12 7 - 9 +/- 9.5 +/- 7.5 3,500 8,100 9.4 - 9.8 > 30,000 10 - 14 5 - 7 +/- 9.5 +/- 5 Comments: As a standard practice for tie-back string completions, displace the drilling mud above top of liner with brine treated with corrosion inhibitor (Congor 303A) at a concentration of 1 drum per 100 barrels of fluid. See mud prognosis for details. Solids Control Equipment m ~ ~ ~ ffi ~ ~° ~ ~ ~ g ~ o N Interval U 0 - 10,343' MD X X X X Closed Loop System, Full Containment Item Equipment Specificat>ans ,des' ,brand, model, flow ,etc Shaker 2 -Derrick Model 2E48-90F-3TA D N/A DesUtsr 1 -Derrick Model 0522 Mud. Cleaner N/A Centrifuge 2 - MI/Swaco units Guit>r~s Dryer N/A Cuttirps Ir~ebiiat Marathon G&I Facility Zoo Dlsd~arge N/A Comments: The solids control equipment will consist of two flowline cleaners, a desilter, and the MI centrifuge van. Included will be equipment to de-water the underflow from the mud processing equipment to allow for disposal of the cuttings and solids by slurrification and injection into the disposal well at the KGF. Page 11 of 13 ~ • Cement Program Summary Depth. Gain Top of Cement Size (in} MD ft TVD Hde Siz® ~ MD TVD ft Ann va To TOC (ft'I Slurry Vol (~Sl woc Tkn® } Hoi+e ' Exca~is ~ 9 5/8 1,769 1,500 i 2 114 0 0 678 971 8 50 7 5,553 3,500 81/2 1,200 -1,132 570 755 8 35 41/2 10,343 8,100 61/8 0 3,355 472 639 N/A 35 MiSC Water' ~'~ Casing Siae Density Qty Yid Slurry Voi TOC MD Qty Wt. FW StrengEh (~} Siurry Cemerrt Descriptio+t {IbJpai} (sx) (fts/sx) (ft~ (ft} (siaUsx} Tye tcc ~-} s ku z4 t~' 9 5/8 TaA Type I Cement 12 387 2.51 971 0 11.28 Fresh 812 0 500 lid Class"G" 12.5 230 2.47 567 13.79 Fresh 7 - 7aif Class"G" 15.8 161 1.17 188 5,000} 4.99 Fresh 41/2 Tai Class"G" 13.5 349 1.83 639 5,968" 9.22 Fresh Comments: S ~5~ w~p- See cement prognosis for details and spacer specifications. Bit Summarv Interval - MD TYPe Recorr-merided Estirhated From ft To ft Size (in} Manufacturer Model No. IADC WOB } RPM Rs~ting Hours FiOP {ftllu 0 1,769 12 1/4 Christensen MX-C1 117 2 - 5 80 - 300 1,769 5,553 8 1/2 Christensen HCM 605 M223 Up to 25 Motor 5,553 10,343 6 1/8 Christensen HCM 5052 M323 Up to 25 Motor Comments: See bit prognosis for additional information. Page 12 of 13 • • Hydraulics Summary Rig mud pumps available are shown below. Max Prass ~ Di~pl O loner ID Stroke 9096 WP 9596 eff Nl~x Ra#a tide 8~ior~s Liiwd Qty Make (in) (in) (~) ) , (~!~ Ski 5 8 2,597 2.04 125 / 255 Surface 3 National Oil A600PT 5 8 2,597 2.04 125 / 255 Interrnediate Well 5 8 2,597 2.04 125 / 255 Production Tabulated below are the expected flow rates, standpipe pressures and nozzle sizes for each hole section. Depfh-MD Hde Size Gt Ptrnp F3~te Starxipipe Pressure i Min AV ECD lb/ Nozzle Size 32"s} s 0 - 1,769 12 1/4 575 1,588 103 5 - 15's MI Virtual Hydraulics 1,769 - 5,553 8 1/2 525 2,368 217 5 - 15's MI Virtual Hydraulics 5,553 - 10,343 6 1/8 279 2,450 296 3 - 16's Actual Data from SD #4 (~ 11,953' MD) Comments: See separate hydraulics calculations. 4" drillpipe used in all hole sections. Formation Intearitv Test Procedure Surface and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Page 13 of 13 Marathon Oil Well Ninilchik State #1 Diverter 21 1/4" 2M Diverter _~ 16" Automatic Knife Va{ve Diverter Spool 16" Diverter Line • Marathon Oil • Well Ninilchik State #1 BOP Stack Flow Nipple Flow Line 13 5/8" 5M Annular Preventer 13 5/8" 5M Double Ram Preventer 2 1/16" SM Check Valve 2 1/16" 5M Manually Operated Valves 1~ f 1T1~f11 x x 13 5/8" 5M Cross 13 5/8" 5M Single Ram Preventer Pipe Ram I I ~J Blind Ram ~ 3 1/8" 5M Manually Operated Valve Choke x X 1 j 3 1/8" 5M Hydraulically Pipe Ram Operated Valve Bottom of Single gate must be 24-45" from ground level for Glacier 1 rig placement. 13 5/8" 5M x 13 5/8" 5M Drilling Spool ~ 13 5/8" 5M Tubing Head Flange ~ • Marathon Oil Well Ninilchik State #1 Choke Manifold • i To Gas Buster X °°~ I X I 2 9/16" 10M Swaco Hydraulically Operated Choke Lou-'~tR uL11~-'`~ 3" 5M Valves To Blooey Line X °~ I Bleed off Line to Shakers X I °~~ I X X X o~ o, ~~~ X X X I 3 1/8" 5M Manually Adjustable Choke I From BOP Stack I • • Surface Use Plan for Ninilchik Unit -Ninilchik State #1 Surface location: Anticipated at 994' FNL, 1,172' FWL, Sec. 34, T1 N, R13W, S.M. 1) Existing Roads The Sterling Highway will be used for access to the Ninilchik State #1 well and is shown on the r attached map. Ninilchik, Alaska is the nearest town to the site. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access Ninilchik State #1. 3) Location of existing wells Well Ninilchik State #1 will be drilled on Ninilchik State pad. A pad drawing is enclosed that shows the proposed location of Ninilchik State #1. 4) Location of existing and/or proposed facilities No facilities are proposed at this time. 5) Location of Water Supply A water supply well exists on the pad that Ninilchik State #1 will be drilled from. 6) Construction Materials No construction is planned on the pad. 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The cuttings and excess mud will be hauled to Pad 41-18 of the Kenai Gas Field for disposal into Well KU 24-7, a Class II disposal well r (AOGCC Disposal Injection Order No.9, Permit #81-176). b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be hauled to Pad 34-31 of the Kenai Gas field and injected in Well WD #1, ~ an approved disposal well (AOGCC Permit #7-194). d) Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. • • e) Sewage Sewage will be hauled to the Kenai sanitation facility. 8) Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. Town & Country will collect and transport sanitary wastes to their ADC approved disposal facility. No additional structures will be necessary. 9) Plans for reclamation of the surface Ninilchik State #1 will be drilled from an existing pad. Reclamation of the pad, if required by the landowner, will occur after the abandonment of Ninilchik State #1 and the other existing wells on the pad. 10) Surface ownership The State of Alaska is the surface owner of the land at the Ninilchik State pad. ~ 11) Operator's Representative and Certification I hereby certify that I, or persons under my direct supervision, have inspected the proposed drill site and access route; that I am familiar with the conditions that currently exist; that the statements made in this plan are, to the best of my knowledge, true and correct; and that the work associated with operations proposed herein will be performed by Marathon Oil Company and its contractors and subcontractors in conformity with this plan and the terms and conditions under which it is approved. This statement is subject to the provisions of 18 U.S.C. 1001 for the filing of a false statement. Date: Z~~~! ~`~ Name and Title: .1/ Willard J. Tank, dvanced Senior Drilling Engineer Marathon Oil Company P. O. Box 3128 Houston, TX 77253 (713) 296-3277 ~ • ' ' I E , ~REE~~N , ° r-° .° ~ i i I I I _ ^~ 1 ~' ~ ~ / I I ~ ~ I ''_ SECTIONLINE I 35 1 34 ____ 1 NOTE: SECTION LINES ___ __ _ I I - "- +' L - l i NOT TO SCALE j ~ j I w ZI 1 W ~ I --I I i of 1 i SECTION ~ w I ~ 1 34 J ~~ i I UI I Z p I ~~ w1 wl 1 ~ Q I I ~I ~ ~N p, ~ ~ ~ J W ~ I 11 1172' FWL STATE PAD WELL ~ j ~ I ~ PROPOSED NINILCHIK, i i ~ I i STATE PAD NO. 1 WELL I ~ ~ ASP ZONE 4 NAD27 ~ ; . i w I 1 N: 2245904.532 / I z ---~- --1- PROPERTY LINE ----------------- -- - _- -- E: 222422643 ~~ / ~ ! I } I ! - - LAT: 60 820.168 N--~ ---- ° ' " -; -T -~ F- I 31 22.095 LONG: 151 W I j w 1 1 G j FWL = 1172' / l a 1 p \'' ~ FNL = 924' / i i i~ 1 Q '~ ELEV = 147.82' (MSL) a I 10 ~/ SECTION 34, TOWNSHIP 1 N j i 1 ~ I ~!v RANGE 13W, SM AK ~ Q ~ ~P ~ ~~I I ~ w ~ CI I 1 1 \ ~` ~ P~ / °1 I '~ I 1 I .~~ ~°`i ' a ' z• ~ ~ `'~~ OI ~1 ' `` I STATE PAD ~, a, i m i I II ~', .w. I I J , ~o~ ~ r / ' '~' ' I I e ~ 1 1 j ~ I ~ , NOTES 1. BASIS OF COORDINATES IS KEN1 CORS STATION, NAD27 ALASKA STATE PLANE ZONE 4. 2. BASIS OF VERTICAL CONTROL lS NGS BENCH MARK MONUMENT V 82, ELEVATION = 289.42 FEET (NGVD 88). SCALE o so ~zo NORTH FEET _ ! • ~ - ~O' T PROJECT REVISION: M 11~.A]lA'aLV~[A N NINILCHIK, STATE PAD NO.1 o"'E ~"`0' OIL COMPANY WELL STAKED LOCATION oRAwN BY: DME YARA7I'IOq • ~~A ~ SCALE: 1 • = 80' SURFACE LOCATION DIAGRAM PROJECT NO. 053007 ENGINEERING /MAPPING / SURVEYMIG I7ESTING BOOK NO. 04.15 Consulting Group P.O. eOX 668 SOLOOTNA, AK.98889 LocATK)N VOICE: (807)283-4218 FAX: (so7)2e3-3z55 sYIEET cLane esting EMAIL: SAMCLANE~MCLANECG.COM S34 T1 N R13W SEWARD MERIDIAN, ALASKA '~ of 1 ~~~ ~~~ o~ G ... _ ~~_T ~~ L' I 1= Project Location _ , , ~.' \, .~1 x` ; ..-:: ~~ .~~ _ i f ~ '~ 3;;~ `. !f ~i .ep `~s '~ 3 ! Y . ~,aKl 1 _____ _ _, ~~ 9 I i0- - I ; _ ,. - ,~~.~:; ., i~ io i; 1' ~ - I - •~ - - _ -- - ~ 5 Icki~. Rana - ~ NmikAk Net ' 24 I ~ 4 ~' 4 25 I oG ~._. ~ 2,9 _ ; I I i ; _ j 32 33 34.~ 1 `~ i _ III I _ I G ~ ~ I I ` _-______~.___________ __J ~~Me Nirdkhik '~ ~ . , 6 , ~"~~ ii i ~ zer S '~ ~ ~ 31 ~ ' I lI I _. ~ ~ _ -T 1 i ac..~- -i-"-= - - _ _ _ . °_°~_ o _ ~ 9ooc ,~ _:.:_ ix:a - ' _- .. KENAI (A-S. ALASK -- - __ -- - - Marathon Oil Com Pay Project: Ninilchik State No.1 SW 1/a, NW 1/~, 34, T1N, R13W Seward Meridian • • GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT ~~~ BAKER iBS6MES INTEQ N -500 E U 0 r a~ c~ ~ 500 1000 1500 2000 2500 w+ d w 3000 s a 3500 I~ ~ 4000 ~ 4500 i i- 5000 V 5500 6000 6500 7000 7500 8000 8500 Scale 1 cm = 400 ft East (feet) -> -5600 -4800 -4000 -3200 -2400 -1600 -800 0 800 ~ 2400 o~ e~ ~~ c o ~~ ,~O 1600 ;~ 7.000in Intermediate casing Z 3 1/tin Liner ~ 8.00 800 ~ 16.00 DLS: 4.00 deg/100ft 32.00 9 5/bin Surface casing °~ 0 .i,. 44.00 ~' 52.00 End of Build - 60.00 Inc, 1750.00 Md, 1490.49 Tvd, 716.20 VS -800 $ 0 9 5/bin Surface casing ~ of Hold - 60.00 Inc, 4679.02 Md, 2955.00 Tvd, 3252.80 VS 56.00 52.00 DLS: 2.00 deg/100ft 7.000in Intermediate casing \\° 44.00 v 40.00 NS#1 -Tyonek - 1 /24/05 Tyonek 32.00 28.00 24.00 20.00 16.00 12.00 8.00 4.00 End of Drop - 0.00 Inc, 7679.02 Md, 5435.98 Tvd, 4685.20 VS NS#1 -Tyonek T3 - 1/24/05 Tyonek T3 NS#1 - TD - 1/24/05 3 1/tin Liner TD -500 -0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 Scale 1 cm = 250 ft Vertical Section (feet) -> Azimuth 290.55 with reference 0.00 N, 0.00 E from Slot #1 Created by : Planner Date potted : 3-Feb-2005 Plot reference is NS#1 Ver 2. Ref wegpath is NS#1 Var 2. coordinates ere M feet reference Sot #1. True Vertical Oapths era reference Rig 0®Wm. Measured Depths are reference R(g DaWm. Rig Datum: Datum #1 Rig Datum to Mean Sea Level: 159.00 ft Plot North is aligned to TRUE North J MARATHON Oil Company,Slot #1 ''~ Ninilchik State, MARATHON Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 1 Wellbore: NS#1 Ver 2 Wellpath: NS#1 Ver 2 Date Printed: 3-Feb-2005 ~.r INTEQ ___ ___ Wellbore ~ ' ___ _ Name _ Create Last Revised WeII ~- - - --- ___ _ Name ~ __ __ Government ID La~s!_~aY~ed _ NS#1 24- an-20 5 Name ___ Slot #1 $lot tasting Latitude ~~ ~a~n ~ I Nan R ~n ~ aa, Installation __ Name Ea tin Northing. _ Coord System Name - -- _ -I---{d~uth~tisirta~rtt Ninilchik tate 221264. 314 2246847.5560 AK-4 on NORTH AMERICAN DATUM 1927 datums True Field _ .__ Name Eastin~_ Northin Coord System Name .-_-- Nerd t _ . Ninilchik Field 226657.8482 2252005.1188 AK-4 on NORTH AMERICAN DATUM 1927 datum True ~ _. .. ,._. - - __ T ~~~Gr~~ted ~~ ~ - - -- - - ~ "~'~ C4xnmel~ts All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #1 159.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 290.55 degrees Bottom hole distance is 4685.20 Feet on azimuth 290.55 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated • MARATHON Oil Company,Slot #1 '~ Ninilchik State, MARATHON Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 2 Wellbore: NS#1 Ver 2 Wellpath: NS#1 Ver 2 Date Printed: 3-Feb-2005 1' ;.,fit ~~ ,:, INTEQ _ _Well _ath Grid Re MO[ft] ~Inc{deg) Azi[deg] ND[ft) North(ft) East[ft] Dogleg 1 Of ort __ _ Vertical Eastirt9 NArthG:tg 0.00 0.00 290.55 0.00 O.OON 0.00E 0.00 0.00 222422.64 2245904.53 100.00 0.00 290.55 100.00 O.OON 0.00E 0.00 0.00 222422.64 2245904.53 200.00 0.00 290.5 200.00 O.OON 0.00E 0.00 0.00 222422.64 224 9 . 3 250.00 0.00 290.55 250.00 O.OON 0.00E 0.00 0.00 222422.64 2245904.53 350.0 4.00 290.5 349.92 1.23N 3.27W 4.00 3.49 222419.40 224590. 3 450.00 8.00 290.55 449.35 4.89N 13.05W 4.00 13.94 222409.71 2245909.72 550.0 12.00 290.55 547.81 10.99N 29.31 W 4.00 31.30 222393.6 2245916.19 650.00 16.0 90.55 644.82 1 .48N 51.96W 4.00 55.49 222371.15 22 5. 750.00 20.0 290.55 739.91 30.32N 80.89W 4.00 86.3 222342.48 22459 .71 850.00 24.00 290. 832.1 43.47N 115.96W 4.00 123.84 222307.72 224 9 .00 28.00 290. 922.47 58.85N 157.OOW 4.00 167.67 222267.05 2245 10 0. 0 32.00 90.55 10 9.05 76.40N 203.81 W 4.00 217.66 222220.66 224 1 115.0 36.0 290.55 1091.94 96.03N 256.15W 4.00 273.56 2221 8.77 2246 .44 12 0.00 4 .00 290.55 1170.72 117.63N 13.79W 4.00 335.12 222111.65 224 29.37 1 50.00 44.00 29 .55 1245.03 141.12N 76.43W 4.00 402.02 22204 .57 224 054. 1450.00 48.00 290.55 1314.48 1 6.36N 44 .78W 4.00 473.94 221982.82 224 1. 8 1550.00 52.00 290.55 1378.74 193.25N 515.49W 4.00 550.52 221911.75 2246109.61 1 50.00 56.0 290.5 1437.51 221.64N 91.23W 4.0 631.41 221836.69 22461 .74 1750.00 60.00 290.55 1490.49 251.40N 670.62W 4.00 716.20 221758.00 2246171. 2 1800.00 60.00 290.55 1515.49 266.60N 711.17W 0.00 759.50 221717.82 2246187.45 1 6 .0 0.55 1 65.49 297. N 7 6W .1 221 7.4 2000.00 60.00 290.55 1615.49 327.40N 873.35W 0.00 932.70 221557.08 2246251.97 2100.00 60.00 290.55 1665.49 357.80N 954.44W 0.00 1019.31 221476.71 2246284.2 2200.00 60.00 290.55 1715.49 388.20N 1035.54W 0.00 1105.91 221396.34 2246 16.4 2300.00 60.00 290.55 1765.49 418.60N 1116.63W 0.00 1192.51 221315.98 2246348.75 2400.00 60.0 29 .55 1815.49 449.OON 1197.72W 0.00 1279.11 2212 .61 246 81. 1 2500.00 60.00 290.55 1865.49 479.40N 1278.81 W 0.00 1 65.72 221155.24 2246413.27 2600.00 60.00 290.55 1915.49 509.80N 1359.90W 0.00 1452.32 221074.87 2246445.53 270 .00 60.00 290.55 1965.49 540.20N 1440.99W 0.00 1538.92 220994.5 2246477.79 2800.00 60.00 290.55 2015.4 570.60N 1522.09W 0.00 1625.52 220914.13 224651 .05 2900.00 .00 29 .5 20 5.4 601.OON 1603.18W 0.00 1712.13 22083.7 2246 42.31 300 .00 .0 290.55 2115.4 631.40N 1684.27W 0.0 1798.73 220753.40 2246 74.57 3100.00 0.00 2 0.55 21 5.49 6 1.80N 1765.36W 0.00 18 .33 220 73.3 4 3 0 60.0 290.55 2215.49 2.20N 184 .45W 0.00 1 71.3 2205 2. 2 4 6 .09 3300.00 60.00 290.55 2265.49 722.60N 1927.54W 0.00 2058.54 220512.29 2246671.35 3400.00 60.00 2 0. 5 231 .49 753. N 2008.64W 0. 0 2145.14 220431.92 22467 3.61 35 0.00 60.00 290.55 2365.49 783.4 N 2 89.73W 0.00 2231.74 220351.56 224 7 .87 3600.00 60.00 290.55 2415.49 813.80N 2170.82W 0.00 2318.34 220271.19 2246768.13 370 .00 60.00 290.55 2465.49 4.20N 2251.91 W 0.00 2404.9 220190.82 2246800.39 3800.00 60.00 290.55 2515.49 874.60N 2333.OOW 0.00 2491.55 220110.45 2246832.65 3900.00 60.00 290.55 2565.49 905.OON 2414.09W 0.00 2578.15 220030.08 2246864.91 4000.00 60.00 290.55 2615.49 935.39N 2495.19W 0.00 2664.75 219949.71 2246897.17 4100.00 60.00 290.55 2665.49 965.79N 2576.28W 0.00 2751.36 219869.35 2246929.43 4200.00 60.00 290.55 2715.49 996.19N 2 57.37W 0.00 2837.96 219788.98 2246 61.6 4300.00 60.00 290.55 2765.49 1026.59N 2738.46W 0.00 2924.56 219708.61 224699 .95 4400.00 60.00 290.55 2815.49 1056.99N 2819.55W 0.00 3011.16 219628.24 2247026.21 4500.00 60.00 290.55 2865.49 1087.39N 2900.64W 0.00 3097.77 219547.87 2247 5 .4 4600.00 60.00 290.55 2915.49 1117.79N 2981.74W 0.00 3184.37 219467.50 2247090.74 4679.02 0.00 290.5 2955.0 1141.81 N 3045.82W 0.00 3252.80 219404.0 2247116.2 4779.02 58.0 2 0.55 3006.50 1171.9 N 3126. 7W 2.00 3338.52 219324.46 2247148.16 4879.02 56.00 290.55 3060.9 1201.34N 3204.60W 2.00 3422.38 219246.63 2247179.40 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #1 159.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 290.55 degrees Botiom hole distance is 4685.20 Feet on azimuth 290.55 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated C7 MARATHON Oil Company,Slot #1 Ninilchik State, MARATHON Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 3 Wellbore: NS#1 Ver 2 Wellpath: NS#1 Ver 2 Date Printed: 3-Feb-2005 ti ~~rF~ ~ - iNTEQ Wel! ath Grid Re ort MD(ft] Inc[degJ Azi{des1- _ I TVD(#f] North{ft] Eastjft] Dogleg 1 Vertical East3ng Pcig 4979.02 54.00 290.55 3118.32 1230.09N 3281.30W 2.00 3504.29 219170.62 2247209.91 5079.02 52.00 290.55 3178.50 1258.13N 3356.08W 2.00 3584.15 219096.50 2247239.66 5179.02 50.00 290.5 3241.42 1285.40N 3428.84W 2.00 3661.86 219024. 2247268.60 5279.02 48.00 290.55 3307.03 1311.89N 3499.51 W 2.00 3737.33 218954.35 2247296.72 5379.02 46.00 290.55 3375.2 1337. 7N 3 7.98W 2.00 3810.46 218886.4 2 47 5479.2 44.00 290.55 3445.93 1362.39N 3634.19W 2.00 3881.17 218820.87 2247 50.30 5579.2 42.00 290.55 3519.06 138 .32N 3698.05W 2.00 3 9.36 218757. 2247375.7 5 79.2 4 . 0 290.55 3594.53 1409.35N 3759.48W 2.00 4014.96 218 96.7 24 4 .14 5779.2 38.00 290.55 3672.24 1431.44N 3818.40W 2.00 4077.89 218638.0 2247423. 5879.2 36.00 290.55 3752.10 1452.57N 3874.75W 2.00 41 8.07 21 2.4 2474 5979.02 34.0 290.5 3834.01 1472.70N 3928.45W 2.00 419 .43 218 29.23 2247467. 079.2 32.00 290.55 17.87 14 1.82N 3979.45W 2.00 4249. 218478.9 2247487. 617.2 30.0 290.55 4003.59 1509.8 N 4027.68W 2. 0 4301.39 21 430.90 2247 6279.2 28.00 2 .55 4091.4 1526.91N 4073.07W 2.00 4349.87 21838 .91 2 47 24. 6379.02 26. 290.55 41 0.14 1542.85N 4115.5 W 2.00 4395.26 218 3.78 2247 1. 6479.02 24.00 290.55 427 .77 1557.6 N 4155.1 W 2. 0 4437.52 218304.56 2 475 7. 6579.02 22.00 290.55 4362.81 1571.40N 4191.73W 2.00 4476.59 218268.30 2247572.10 667 .02 20.00 290.5 4456.16 1583.97N 422 .29W 2.00 4512.43 2182 5 2247 .4 6779.02 18.00 290.55 4550.71 1595.40N 4255.77W 2.00 4544.98 218204.84 2247597.58 6879.02 16.00 290.55 4646.34 1605.66N 4283.15W 2.00 4574.22 218177.70 2247608.47 6 7 14.0 2 .5 474 9 1 14.7 4307.3 W 2. 4 .1 21 5 2 47 1 .11 7079.02 12.00 290.55 4840.36 1622.65N 4328.44W 2.00 4622.59 218132.81 2247626.4 7179.02 10.00 290.55 4938.52 1629.34N 4346.31 W 2.00 4641.67 218115.11 2247633.59 7279.02 8.00 290.55 5037.28 1634.83N 4360.95W 2.00 4657.32 218100.59 2247 39.42 7379.02 6.00 290.55 5136.53 1639.11N 4372.37W 2.00 4669.50 218089.28 2247643.9 747 .02 4.0 290.5 5236.14 1642.17N 43 0.53W 2.00 467 .22 21 081.1 2247 47.2 7579.02 2.00 290.55 5336.00 1644.01N 4385.43W 2.00 4683.45 218076.34 224764 .1 7679.02 0.00 290.55 5435.98 1644.62N 4387.06W 2.00 4685.20 218 74.72 2247 9.8 770 .00 0.00 290.5 56.6 1644. 2N 4387.06W 0. 0 4 8 .20 21 74.7 224764 .8 7800.00 0.00 290.55 5 56.96 1644.62N 4387.06W 0.00 4 8 .20 21 074.72 2247 9.81 7900.00 0.00 290.55 5656.9 1644.62N 4 87.06W 0.00 4 85.2 218 74.7 2247 1 8000.00 0. 0 290.5 5756. 1 44.6 N 4 87.06W 0.00 46 5.20 21 74.72 2 47 4 . 1 810 .00 0.00 29 .55 585 .9 1644.62N 4 87.O6W 0.00 4 85.0 21 74.7 224 8200.0 .00 290. 5 56. 1644.62N 4387.O6W 0.00 468 .20 218074.7 47 1 8300.00 0.00 290.55 6056.96 1644.62N 4387.06W 0.00 4685.20 218074.72 2247649.81 84 0.00 290.55 6156. 1644. 2N 4 7.06W 0.00 4 .20 21 074.72 2 7 4 . 1 85 0.00 0.00 290.5 6256. 1 44.62N 4 87.06W 0.00 4685.20 218074.7 4764. 1 8600.00 0.00 290.55 6356.96 1644.62N 4387.06W 0.00 4685.20 218074.72 2247649.81 8700.0 . 0 29.5 6456.96 1644.62N 4387.06W 0.00 4685.20 21 074.72 2 47 1 8800.00 0.00 290.55 6556.96 1644.62N 4387.06W 0.00 4685.20 218074.72 224764 .81 8900.00 0.00 290.55 6656.96 1644.62N 4387.06W 0.00 4685.20 218074.72 2247649.81 9000.00 0.00 290.5 6756.96 1644. 2N 4387.06W 0.00 4685.20 218074.72 2247649.81 9100.00 0.00 290.55 6856.96 1644.62N 4387.O6W 0.00 4685.20 218074.72 2247649.81 9200.00 0.00 290.55 6956.96 1644.62N 4387.06W 0.00 46 5.20 218074.72 2247 4 . 1 93 0.00 0.00 290.55 7056.96 1644.62N 4387.06W 0.00 46 5.20 218074.72 247 4 . 1 9400.00 0.00 290.55 7156.96 1644.62N 4387.06W 0.00 4685.20 218074.72 2247649.81 9500.0 0.00 290.55 7256.96 1644.62N 4387.06W 0. 0 4685.20 218074.72 47 .81 9600.0 0.00 290.5 7356.96 1644.62N 4387.06W 0.00 4685.20 218074.72 2247 49.81 9700.00 0. 0 290.55 745 .9 1644. 2N 4 87.0 W 0.00 46 5.20 21 74.72 2 4 4 .81 980 .0 0.00 2 5 755 .96 1 44. 2N 4387.06W 0. 0 4685.20 218 74.7 22 7 .8 900.00 0.00 290.55 7656.96 1644.62N 4387.06W 0.00 4685.20 218074.72 2247 .81 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #1 159.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 290.55 degrees Bottom hole distance is 4685.20 Feet on azimuth 290.55 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated • MARATHON Oil Company,Slot #1 ~~ Ninilchik State, MARATHON Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 4 Wellbore: NS#1 Ver 2 Wellpath: NS#1 Ver 2 Date Printed: 3-Feb-2005 ~~ INTEQ Well ath Grid Re ort MD(tt) Irrcjdegl ~ Azi(deg] _ TVL}(iiI PtottttitR] Eaast[#t] ~ Dogl®g 1 Vertical F.aBtinQ 10000.00 0.00 290.55 7756.96 1644.62N 4387.06W 0.00 4685.20 218074.72 2247649.81 10100.00 0.00 290.55 7856.96 1644.62N 4387.O6W 0.00 4685.20 218074.72 2247649.81 10200. 0.00 290.55 7956.96 1644.62N 4387.06W 0.00 4685.20 21 074.72 2247 9.81 10300.00 0.00 290.55 8056.96 1644.62N 4387.06W 0.00 4685.20 218074.72 2247649.81 10343.04 .00 29 .5 8100.00 1 44. 2N 4387.06W 0.00 4685.20 218074.7 22 76 .81 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #1 159.Ott above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 290.55 degrees Bottom hole distance is 4685.20 Feet on azimuth 290.55 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated • MARATHON Oil Company,Slot #1 Ninilchik State, MARATHON Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 5 Wellbore: NS#1 Ver 2 Wellpath: NS#1 Ver 2 Date Printed: 3-Feb-2005 ~~~ iNTEQ Comments -- -- M # TVO(f11 _ _. N -- Comma--- - -- - -- ---- 7 .5 367.0 14 2. 2 .4 W k 8042.04 5799.00 1644.62N 4387.O6W T onek T3 10343.04 8100.00 1644.62N 4387.O6W TD Hole Sections Diameter i finl - _ Start _MDf Start TVD Start ft Start. ft End End TVDfftL_ End North(ftl Start Eastlftl _ Wellb0re _ _ __ _ _ __ 121/4 0.00 0.00 O.OON 0.00E 1769.02 1 00.00 257.19N 686. 5W NS#1 Vert 8 1/2 1769.02 1500.00 257.19N 686.05W 5553.26 3500.00 1380.24N 3681.83W NS#1 er 2 6 1/8 555 .26 3500.00 1380.24N 3681. 3W 10343.04 8100.00 1644.62N 4387.0 W NS#1 Ver Casin s Name Top Top Top Top Shoe Shce Shoe Shoe Wetfbor'e MD TVD ft N D TVD North t ft 9 5/bin Surtace 0.00 0.00 O.OON 0.00E 1769.02 1500.00 257.19N 686.05W NS#1 Ver 2 casin 7.OOOin 0.00 0.00 O.OON 0.00E 5553.26 3500.00 1380.24N 3681.83W NS#1 Ver 2 Intermediate casin 3 1/tin Liner 0.00 0.00 O.OON 0.00E 10343.04 8100.00 1644.62N 4387.06W NS#1 Ver 2 Ta r: ets Name E 'tu Eas Norhtntr Last Revis~~i _ _ NS#1 -Tyonek - 1/24/05 1456.97N 3857.30W 3675.00 N60 8 34.51 W151 3238.27 218600.00 2247450.00 10-Feb-2003 NS#1 -Tyonek T3 1 /24/05 1644.82N 4386.78W 5799.00 N60 8 36.35 W151 3248.73 218075.00 2247650.00 10-Feb-2003 NS#1 - TD - 1 /24/05 1644.82N 4386.78W 8100.00 N60 8 36.35 W151 3248.73 218075.00 2247650.00 10-Feb-2003 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #1 159.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 290.55 degrees Bottom hole distance is 4685.20 Feet on azimuth 290.55 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated M MARATHON MARATHON Oil Company NS#1 Ver 2, NS#1 Ver 2 Slot #1, Ninilchik State CLEARANCE LISTING Page 1 Date Printed: 2-Feb-2005 Ninilchik Field, Kenai Peninsula, Alaska Ellipse separations are reported ONLY if BOTH wells have uncertainty data OnIV Depth and Magnetic Reference Field error terms are correlated across tie points Proximities beyond ft with expansion rate of ft/1000ft are not reported Cutoff is calculated on CENTRE to CENTRE distance Summary data uses Closest Approach clearance calculation for all minima Hole size/Casings are NOT included Hole size/Casings are NOT subtracted from Centre-Centre distance Ellipses scaled to 2.OOstandard deviations. Closing Factor Confidence limit of 99.80% Errors on Ref start at Slot Permanent Datum (0.00) Report uses Revised: (D-C)/E Factor Calculation ~Ga~ BAKER HUGHES INTEQ Well Name Government ID NS#1 ~4-Jan-2005 Clearance Summa Offset WeuName Offset Wellbore Offset Slot Offset Structure Minimum Distance MD[ft] Diverging From[ft] Ellipse Separation Ellipse MD[ft] Clearance Factor Clearance MD[ft] MGO #3 MGO #3 Ver MGO #3 MGO 5523.6 10315.0 10315.0 All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Datum #1 159.Oft above Mean Sea Level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated M MARATHON MARATHON Oil Company NS#1 Ver 2, NS#1 Ver 2 Slot #1, Ninilchik State • CLEARANCE LISTING Page 2 Date Printed: 2-Feb-2005 Ninilchik Field, Kenai Peninsula, Alaska r~.~ BAKER 41U6FIES INTEQ Clearance Data Reference MD[ft] Reference ND[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] Offset ND[ft] Offset North[ft] Offset East[ft] Angle From Highside Closest Approach Distance Ellipse Separation [ft] 7479.0 5236.1 1642.17 4380.53 MGO #3 12151.4 6587.7 7175.82 2507.10 89.1 5996.4 7700.0 5456.9 1644.62 4387.06 MGO #3 12356.7 6776.5 7156.16 2585.27 18.1 5946. 8000.0 5756.9 1644.62 4387.06 MGO #3 12632.6 7030.3 7129.73 2690.31 17. 5881.0 8300.0 6056.9 1644.62 4387.06 MGO #3 12908.6 7284.1 7103.31 2795.34 16. 5816.9 8600.0 6356.9 1644.62 4387.06 MGO #3 13184.5 7537.9 7076.88 2900.38 15. 5754.5 4. 8900.0 6656.9 1644.62 4387.06 MGO #3 13460.4 7791.7 7050.46 3005.41 14. 5693.8 4 9200.0 6956.9 1644.62 4387.06 MGO #3 13736.3 8045.4 7024.03 3110.45 13. 5634.9 7 9500.0 7256.9 1644.62 4387.06 MGO #3 13765.2 8072.0 7021.27 3121.43 13. 5583.4 9800.0 7556.9 1644.62 4387.06 MGO #3 13765.2 8072.0 7021.27 3121.43 13. 5547.5 10100.0 7856.9 1644.62 4387.06 MGO #3 13765.2 8072.0 7021.27 3121.43 13. 5527.7 10315.0 8072.0 1644.62 4387.06 MGO #3 13765.2 8072.0 7021.27 3121.43 13. 5523.6 Offset Wellbore Surve Tool Pro rams All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Datum #1 159.Oft above Mean Sea Level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1D) Prepared by Baker Hughes Incorporated File €dit Profiles Table Tools Offset Data Units ~ndowLlelp ~'_' _ .WLsJJ ~1s1J • __ 7 ~ ~ ~ ~ ~ ~ ~ • ~ ~ ~ ~ ~ ~ ~~~ ~ ~~~ o.oo 3 1,511 ij[i : i~ i.55.';'~ I -1'1(' -lJ t ': ai ~ 'i _ ~ a, -... ~ ~ ~ T 4. 'i;_~.' ^a [~a a0.55! •~ ~~ PJ-,131J_1 ~;;~,: :r ss 5 7679.02 ~ ~ r + 290.550 5435.98 N 1644.62 W 4387.OG~ ~ 4685.20 6 } 10343.04 0.000 290.550 ~ ~ ~~~ (~:~ W 4387.uE 4685.20 • • L' Marathon Oil Company Well Name: Ninilchik State #1 Location: Kenai, Alaska. INTEGRATED FLUIDS ENGINEERING PROJECT PLAN - . IFE Prepared For: MARATHON OIL COMPANY Well Ninilchik State #1 Prepared by: Tony Tykalsky Reviewed by: Hal Martins Presented to: Will Tank February 7, 2005 ~~ Kenai Peninsula, Alaska n Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: • Marathon Oil Company Well Name: Ninilchik State #1 Location: Kenai, Alaska. Enclosed is the recommended drilling fluid program for the Ninilchik State #1 Well to be drilled next year. The following is a brief synopsis of the program. Overview: ,~ NS #1 is a development well targeting the Tyonek formation at the Ninilchik State field. A GeUGelex spud mud is recommended for the surface interval. Two Flo-Pro fluids will be used for the intermediate and production intervals. After logging the production interval, the well will be completed with 4-1/2" liner cemented in place. Surface Interval: A standard fresh water GeUGelex spud mud will be used. Initial funnel viscosity should be in the 50 - 75 sec/qt range. Lower funnel viscosity to 45 - 60 sec/qt after gravel has been drilled. Lower fluid loss to 10 - 12 cc's API prior to running surface casing. Intermediate Interval: ,/ This interval will be drilled with the same type of Flo-Pro fluid used on the SD #4 well. After drilling out the surface cement, the well will be displaced to the new fluid. SafeCarb bridging material will be maintained according to the mud program to minimize losses to the formation. Lubricants should be added on a as-needed basis. Production Interval: This interval will be drilled with the standard non-damaging Flo-Pro fluid used on non-excape wells. After drilling out the intermediate cement and 20 - 25 feet of new hole, the well will be displaced to the new fluid. Fluid loss should be maintained @ 5 - 7 cc's API for this interval. Completion: The completion will consist of a 4-1/2" liner cemented in place. This will be tied back to the surface with a 4- 1/2" completion string. Corrosion control will be added to the 6% KCl brine that will remain in the 4-1/2" x 7" annulus prior to tie-back. Tony Tykalsky Project Engineer M-I Drilling Fluids Reference Well: SD #2, SD #3, SD #4 NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties required. ~~ • • ~~ Marathon Oil Company Well Name: Ninilchik State #1 Location: Kenai, Alaska. EXECUTIVE SUMMARY ~.~~ '~ ~< ~w .,~. Fes"/RONME~P~ Our overall goal is no M-USwaco HSE incidents while providing fluids and solids control services to our customer. Our goal for NS #1 is to remove drill solids from the raud system at a cost of less ~ than 50.23 per pound. This has been the average for the last four years of centrifuge • van operations ~~~ Our goal for NS #1 is to drill the well at a fluid. cost of less than 520.66 per foot with a total volume of fluid used less than 4378 barrels. Use of the MI Swaco centrifuge van for the last four years has provided an estimated '~ savings in dilution and disposal costs to Marathon Oil of over $800,000. With continued usage of our equipment, we expect to provide more savings to you during _ future operations. ~~ L_J ~~ Marathon Oil Company Well Name: Ninilchik State #1 Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervals. Qepth Bencl~r~ark 1 Benchmark 2 Benchmark 3 I~e~~hm~rk ~ j Interval {ft) Fluid cost per foot Volume Usage Solids Removal 0 - 1769' < $4.89 ft < 1303 bbls 1769 - 5553' < $31.98 ft < 1645 bbls 5553 - 10343' < $18.52ft < 1130 bbls Total Project Avg. Max. Targets for < $20.66 < 4378 bbls < $0.231b o Spills from Centrifug Drilling Van Operation Interval ~~ • • '~ Marathon Oil Company Well Name: Ninilchik State #1 _ Location: Kenai, Alaska. Project Summary Casing Hole Casing Depth TVD Mud Mud Sum Interval Size Size Program System Weight Days Mud Cost (in) (in) (ft) (ft) Solids Control (ppg) 9-S/8" 12 1/4" 1769' 1500' GeUGelex Spud 8.6 - 9.4 6 ~12,8b6 Mud Screens 150/180 mesh Desilter Centrifuge Van 7" 8-1.12" 5553' 3500' Flo-Pro 9.4 - 9.8 8 $126,61 b' w/SafeCarb Screens 180 - 2I0 mesh .Desilter i4: ~; ,,, Centrifuge Van 4-1/2" 6-1/8" k 10343' 8100' Flo-Pra 9.4 - 98 10 $91,141 wlSafeCarb Screens 230 - 2.10 =~ mesh '~ Desilter Centrifuge Van 4-1/2" 6-1/8" Completion 10353' 8100' 6% KCl 8.55 4 $5664_ - Utilize all solids control equipment to minimize the build up of drill solids in the system (if possible, centrifuge the surface mud during trips to reduce drill solids). - Condition the mud prior to running casing for all intervals. - Cost does not include any considerations for whole mud losses. - Cost includes 3% Lubetex concentration for intermediate and production interval. 0 Marathon Oil Company Well Name: Ninilchik State #1 Location: Kenai, Alaska. Product Usage Summary ~~ PRODUCT Surface ' ~ 12-114" ' lntermediate 8-1J2" Production 6-1/8" Coin letion ~ 4-1/2" Total Usage ~ ~~" csf Total Cost M-I Bar 65 823 597 0 1485 5.07 M-I Gel 521 0 0 0 521 2.02 Gelex 16 0 0 0 16 0.09 Soda Ash 9 12 8 0 29 0.20 Caustic Soda 13 16 12 0 41 0.64 Con or 404 0 4 4 0 8 4.57 Sodium Meta Bisulfate 13 33 24 3 73 2.17 Bicarb 13 12 8 0 33 0.27 Con or 303A 0 0 0 1 1 0.18 F1oVis 0 132 96 3 225 20.44 Desco CF 13 0 0 0 13 0.28 DualFlo 0 0 90 0 90 3.65 Polypac UL 8 66 0 0 74 5.35 Greencide 25G 0 0 2 0 2 1.51 KCl 0 691 475 126 1292 7.49 Kla and 0 22 15 0 37 11.86 SafeCarb 10 0 329 226 0 555 4.88 Lubetex 0 37 26 0 63 21.32 Defoam X 0 18 6 0 24 0.98 Asphasol Su reme 0 132 45 0 177 6.90 En ineer Service 6 8 10 4 28 ~~ ~ • '~ Marathon Oil Company Well Name: Ninilchik State #1 _ Location: Kenai, Alaska. Offset Well Information Well Hole Size Depth PPG PV YP FL Comments SD #4 12.25" 561 8.8 14 23 14 Spud in, stuck @ 200' (boulder?), free pile, drlg ahead 1861 9.3 15 22 8.2 Drlg do interval T.D. 1861 9.55 16 16 8.4 Run & cement 9-5/8" casing 8.5" 3117 9.2 11 21 7 Drlg out, disp to new mud, drlg ahead, tight on short trip @ 2673' 4590 9.35 13 26 7.4 Drlg ahead, short trip, pump out from 4167 - 3534' NOTE: Pumped lo-vis/hi-vis sweeps with good results 6116 9.7 16 33 7.8 Drlg ahead, short trip, pump out from 4590 - 4179' 6116 9.7 19 28 6.8 Log well, wiper trip (hole un-loaded cuttings) add 3% lubetex for casing run 6116 9.7 19 26 7.2 Run & cement 7" casing 6.125" 7330 9.5 7 17 4.6 Drlg out, disp to new mud, drlg ahead (3% lubetex) 8255 9.8 9 22 4.8 Drlg ahead to 1st coring point, POH 8345 9.8 9 19 5.4 Core #1, OK 8707 9.75 8 19 5.8 Drlg ahead, POH for washout, drlg ahead 9310 9.85 11 28 5 Drlg ahead, increae lubetex to 4% 9922 9.8 11 28 5.2 Drlg ahead 10924 9.8 10 24 6.2 Drlg to 2nd coring point, POH (tight) 10969 9.8 11 23 6 Core #2 (two runs) 11031 9.8 11 24 5.6 UD core, RIH drlg ahead 11505 9.8 11 20 5.4 Drlg ahead 11685 9.9 11 19 5.8 Drlg to T.D. of well 11953 10.1 13 21 5 Weight up to control gas, log well, (4-1/2% Lubetex) 11953 10.1 11 22 4.1 R/U and run 4-1/2' liner 11953 10.1 12 22 4.2 Cmt liner, dsp well to brine, UD drlg pipe, run 4-1/2" tubing 1~ L~~ • • IFE Marathon Oil Company Well Name: Ninilchik State #1 _ Location: Kenai, Alaska. Offset Well Information SD #3 12.25" 254 8.6 15 38 N/C Spud in, drlg ahead 1370 9.1 16 30 14 Drlg ahead 1875 9.1 15 29 13.8 Trip for motor, drlg ahead 1972 9.2 11 14 14.8 Drlg to TD, r/u & run 9-5/8" csg 8.5" 3100 9.3 9 30 8 New mud, drlg out & drlg ahead 4190 9.55 11 24 7.4 Drig ahead, lots of clays 4756 9.5 10 34 7.2 Short trip, bridge, dump mud to reduce drill solids 5245 9.5 15 28 6.6 Add 3% lubetex to help sliding 5245 9.8 12 28 6.8 Wiper trip, hit bridges, increase PPG with barite, ru 7" csg 6.125" 5635 9.5 9 19 7.7 Drlg out, disp to new mud, drlg to coring point 5693 9.4 9 21 7.6 Core 5721 9.4 10 22 7.2 Core 6310 9.4 11 28 7.9 Log & drlg ahead 6879 9.5 12 27 6.5 Drlg ahead no problems 7745 9.55 13 29 5.9 Drlg ahead, log to 6879' 8445 9.6 14 30 6.2 Drlg ahead, POH for washout 8772 9.7 15 29 7.4 Inc mud weight for core 8887 9.75 13 21 6.8 Run centrifuge van to lower solids 9357 9.8 14 27 6.4 Finish core, drlg ahead, centrifuge solids 9439 9.85 14 27 6.4 Trip for bit 9785 9.8 13 23 5.9 Drlg ahead, trip for washout, RIH 10100 9.75 12 22 5.7 Drlg ahead 10254 9.7 12 22 6.2 Drlg to TD, log hole, fish for logging tool 10254 9.7 10 14 7.2 Run liner, briefly stuck, reduce PPG, run liner 8 cement same SD #2 12.25" 618 8.85 16 26 15.2 Spud in, trip for MWD 1723 9.4 16 23 7.8 Drlg ahead, no hole problems 1927 9.45 13 14 8.2 Drlg to TD, run surface casing, cement same 8.5" 3154 9.25 12 26 8 Drlg out, disp to new mud, drlg ahead 4924 9.4 11 22 8.2 Drlg ahead, short trip OK, drlg ahead 5692 9.55 15 23 7.2 Drlg to csg point, trip out tight in spots. (5100 - 4558') 5692 9.75 12 23 7.6 Long hole on D.P., R/U & run 7" casing 7" 5987 9 10 18 6.2 Drlg out, displace to new mud, LOT 18.8 PPG, drlg ahead 6362 9 12 23 4.8 Drlg ahead add 5°!0 lubricant for sliding(torque 6696 9.2 12 23 4 Drlg ahead, short trip OK, drlg ahead 7216 9.15 13 24 3.8 Drlg ahead, centrifuge mud for weight control 7968 9.25 13 24 3.6 Drlg ahead, short trip OK, drlg ahed 8517 9.2 14 27 3.8 Dr{g ahead, run centrifuge for PPG 9253 9.35 12 30 4.4 Drlg ahed, Ok 9573 9.4 13 33 4.4 Trip for BHA, OK, drlg ahead 9967 9.5 12 33 4.4 Drlg ahead 10657 9.5 12 32 4 Drig ahead, POH for washout 11094 9.7 13 32 4.2 Replace joint, drlg to TD, wiper trip to shoe, OK, 11094 9.85 14 31 4.4 Circ hole clean, Log hole on DP. 11094 9.7 13 30 4.8 Condition hole, centrifuge fluid down to 9.7 PPG 11094 9.7 13 30 5 Run 4-1 /2" tubing, stuck @ 8000', pump Lubetex pill, free string, run to TD, cement casing, (possible diff. sticking) • • '~ Marathon Oil Company Well Name: Ninilchik State #1 _ Location: Kenai, Alaska. Plans & Procedures ~ COMMUNICATION -The Field Mud Engineer will communicate daily with the In-Town Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole difficulties, possible changes to the mud program, and proposals to use products not included in the mud program. ~ FLUID LOSS CONTROL - In the intermediate interval the API fluid loss will be maintained in the 7 - 9 cc's range. In the production interval the API fluid will be maintained in the 5 - 7 cc's at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum . It is particularly important to maintain a low hardness (<200 ppm Ca) for effective use of DualFlo, therefore cement contamination should be completely treated as rapidly as possible prior to adding DualFlo to control or reduce fluid loss. NOTE: If additions of DualFlo do not appear to be lowering the fluid loss adequately, then switch to additions of Polypac Supreme SL after consultation with town. ~ LSRV - Note Change. In the 8-1/2" interval, maintain the LSRV above 40,000. In the 6-1/8' interval, maintain the LSRV above 30,000. These guidelines will promote more effective hole cleaning and reduce fluid loss to the formation. ~ DRILL SOLIDS -MBT -The MBT should be kept at less than 5 ppb in the production interval through aggressive use of solids equipment and dilution as needed. ~ MIXING CONDITIONS -Whenever possible all treatments to the mud system should be made as pre-mix additions. Polymers and KCl should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. ~ CORROSION - Congor 404 additions should be made daily when drilling with F1oPro fluid in order to maintain a Congor 404 concentration of +/- 2000 PPM. ~ CORRISION - Sodium Meta Bisulfate additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 PPM. ~ GREENCIDE 25G ADDITIONS - Greencide 25G additions should be made daily when drilling in the production interval, in the range of 5 gallons per day. ~ SOLIDS VAN USAGE -The Solids Van should be used whenever drill solids become un-acceptably high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should not be the determining condition for when to use the Solids Van. ~ WEIGHTING UP -All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. ~ BEWARE OF STICHING PROBLEMS THAT OCCURRED ON SUSAN DIONNE WELLS (see offset well historyl ~r • u~ Marathon Oil Company Well Name: Ninilchik State #1 Location: Kenai, Alaska. Interval Summary -12-1/4" hole ~ --1.769' Drilling Fluid System GeUGelex Spud Mud Key Products MI Gel / Gelex /Soda Ash /Caustic Soda / MI Bar / PolyPac Supreme UL /Sodium Meta Bisulfate .Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens -154 -180 mesh Potential. Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions nterval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH- Solids (ft) (ppg) (sec./qt) (lb./100ft;) (mU30min) (®/q) 0 -1769' 8.6 - 9.4 60 - 100 25 - 35 NC - 10/12 +/- 9.5 < 7% - Treat drill water with Soda Ash to reduce hardness. - Build spud mud with 20 - 25 PPB M-I Gel to +/- 100 sec.gt funnel viscosity. - Lower funnel viscosity to +/- 60 after any gravel zone has been drilled. - Add Gelex as needed to maintain sufficient viscosity for hole cleaning. - Maintain DO reading of less than 3 ppm with additions of Sodium Meta Bisulfate. - Increase funnel viscosity if fill on connections begins to occur. - Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. - Add 2 - 5 PPB of M-I Seal Fine to mud system if seepage losses becomes a problem.. - Condition mud prior to cementing casing to reduce yield point and gel strengths. - Estimated volume usage for interval -1303 barrels. - Estimated haul off volume - 2063 barrels. ~~ ~ ~ • Marathon Oil Company Well Name: Ninilchik State #1 Location: Kenai, Alaska. Interval Summary - 8-1/2" hole 1769 - 553' Drilling Fluid System Flo-Pro Fluid Key Products Flo-Vis / PolyPac UL / KCl / SafeCarb 10 /Asphasol Supreme / Lubetex / Caustic Soda / Conqor 404 /Sodium Meta Bisulfate / Kla and Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 210 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions nterval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss pH Solids (ft) (pP (~P•) (cps) (mU30mn) (%) 1769-5553' 9.4 9.8 8-12 >40,000 7-9 +/-9.5 +/-7.5% ~~- - Use one rig pit to drill out surface casing. In other rig pits, build new Flo-Pro fluid using the enclosed formula. - After drilling out surface casing, displace hole to Flo-Pro fluid prior to running leak off test. - Maintain DO reading of less than 3 ppm with additions of Sodium Meta Bisulfate. - Maintain Conqor 404 concentration of 2000+ ppm. - If running coals become a problem, increase Asphasol Supreme additions. - Estimated volume usage for interval -1645 barrels. - Estimated haul off volume - 2125 barrels. - Condition mud prior to running 7" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~~ ~J.L.r' /~ • LJ Marathon Oil Company Well Name: Ninilchik State #1 Location: Kenai, Alaska. Intermediate Interval Fluid Formula ~~ ~J.~,~ MUDCALC 4.5 -Water-Based Mud Calculation 8-1/2" Interval from 1769 - 5553' Input escri tiara NS #1 Intermedi ate Interval Mud Wei ht 9.4 .Preh drated Gel No Wei ht Material Code MI Bar Preh rated Gel Canc. Wei ht Material SG 4.2 KCI Chloride Wei ht Material Price KCI Wt% 6 vu u~ - i uur Order of Products Concentration Volume Product Addition Field Ib Lab, m Field, bbl Lab mi sa e 1 Water 317.07 317.07 0.906 317.07 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 2.00 2.00 0.004 1.33 Viscosit 4 Pol ac Su reme UL 2.00 2.00 0.004 1.25 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 H Control 6 KlaGard 6.00 6.00 0.016 5.45 Inhibition 7 As hasol Su reme 4.00 4.00 0.010 3.33 Wellbore Stabilit 8 Potassium Chloride 20.24 20.24 0.024 8.47 Inhibition 9 Con or 404 2.00 2.00 0.004 1.43 Corrosion Control 10 SafeCarb 10 10.00 10.00 0.010 3.57 Brid in A ent 11 MI Bar 30.24 30.24 0.021 7.20 Mud Wei ht 12 Sodium Meta Bisulfate 0.50 0.50 0.002 0.56 Ox en Scaven er If for ue becomes a roblem add u to 5% of the followin 13 Lubetex 14.00 14.00 0.041 14.43 Lubricity Total lorlde 1 394.8 394.8 Estit 9.400 29600 ~~ ~ • Marathon Oil Company Well Name: Ninilchik State #1 Location: Kenai, Alaska. Interval Summary - 6-1/8" hole SS53 -10343' Drilling Fluid System Flo-Pro Fluid Key Products Flo-Vis / DualFlo / KCl / Greencide 25G / SafeCarb 10/ MI Bar / Caustic Soda / Conqor 404 /Sodium Meta Bisulfate / Kla and / Lubetex / As hasol Su reme Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 210 - 230 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions, stuck pipe. nterval Drilling Fluid. Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min. Fluid Loss pH Solids (ft) (Pp (cP•) (GPs) (mU30min) (%) 5553 - 10343' 9.4 9. 10 - 14 > 30,000 5 - 7 +/- 9.5 +/- 5% - Use one rig pit for drilling out intermediate casing. In other rig pits, build new Flo-Pro fluid using the enclosed formula. - NOTE: Initial formula does not call for Lubricant. However lubricant additions should be monitored for there effectiveness with the enclosed data sheet. - Periodic additions of Greencide 25G will be needed to control bacteria build-up. - Estimated volume usage for interval - 1130 barrels. - Estimated haul off volume - 2327 barrels. - Condition mud prior to running 4-1/2" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~~ r ~ L` ~~ Marathon Oil Company Well Name: Ninilchik State #1 Location: Kenai, Alaska. Production Interval Fluid Formula ~I M~ ~~~~-~ MUDCALC 4.5 -Water-Based Mud Calculation M-I L.L.C. 6-1/8" Interval from 5553 -10343' Input Descri tbn NS #1 Production Interval Mud W ht 9.4 reh drated Gel No Wei h# Material Code MI Bar drated Gel Conc. Wei ht Material SG 4.2 KCI Chloride Wei ht Material Price KCl Wt% 6 Order of Products Concentration Volume ProC#~c# Addition Fie{d, lb Lab, m Field bbl Lab, m! Us e 1 Water 317.07 317.07 0.906 317.07 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 1.50 1.50 0.040 1.00 Viscosi 4 DualFlo 5.00 5.00 0.010 3.33 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 H Control 6 KlaGard 6.00 6.00 0.016 5.45 Inhibition 7 As hasol Su reme 2.00 2.00 0.005 1.67 Wellbore Stabilit 8 Potassium Chloride 20.24 20.24 0.024 8.47 Inhibition 9 Con or 404 2.00 2.00 0.004 1.43 Corrosion Control 10 SafeCarb 10 10.00 10.00 0.010 3.57 Brid in A ent 11 MI Bar 51.42 51.42 0.035 12.24 Mud Wei ht 12 Sodium Meta Bisulfate 0.50 0.50 0.002 0.56 Ox en Scaven er If for ue becomes a roblem add u to 5% of the followin 13 Lubetex 14.00 14.00 0.041 14.43 Lubricity otal 1130 barrels 411.6 411.6 Estir 9.800 29600 r~^ ~ • ~~ Marathon Oil Company Well Name: Ninilchik State #1 Location: Kenai, Alaska. Interval Summary -Completion Procedures Corrosion Control Additive in Casing x Tubing Annulus Well Grassim Oskoloff #3 Volumes: Tubing Volume 4-1/2"Tubing 110.61 barrels Annular Volume Casing x Tubing 135.62 barrels 3.992 x 7142 ft Packer @ 7142 ft MD 6.276 @ 7292 ft MD 4.50 @ 13765 ft MD Total Annular Volume 135.62 Tubing Volume 110.61 Total Hole Volume 2as.23 Treatment Procedures. 1. After the 4-1/2" tubing is run and the drilling fluid is conditioned, build at least 260 barrels of 6% KCL brine. 2. Displace mud out of welt with the 6% KCL brine. Add 1 drum of Conqor 303A and 2 sack of Sodium AAeta Bisulfate to the first 135 barrels of brine pumped., 3. Displace the 135 barrels of treated fluid with an additional 110 barrels of brine prior to setting the tubing hanger. 4. This procedure will place corrosion control in the 4-1/2" x 7" annulus. ~~ ~ ~ • • '~ Marathon Oil Company Well Name: Ninilchik State #1 Location: Kenai, Alaska. HSE Issues HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. ~~ • • Marathon Oil Company Well Name: Ninilchik State #1 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammability Reactivity PPE M-I BAR Weighting Agent *1 0 0 E M-I GEL Viscosity control *1 1 0 E GELEX Bentonite Extender 1 1 0 E FLOVIS Viscosifier 1 1 0 E DUAL-FLO Modified Starch 1 1 0 E POLYPAC Fluid Loss Reducer *1 1 0 E SP - 101 Fluid Loss Reducer *1 1 0 E HEC Loss Circulation Material 1 1 0 E Safe-Garb 10, 40, 250 Bridging and weighting agent *1 0 0 E LO WATE Weighting agent *1 0 0 E Nut Plug Loss Circulation Material *1 1 0 E M-I Seal F, M, C Loss circulation Material *1 1 0 E Mix II F,M,C Loss circulation Material *1 1 0 E DESCO CF Dispersant 1 1 0 E SPERSENE CF Dispersant 1 1 0 E TANNATHIN Dispersant 1 1 0 E VENTROL 401 Surfactant ? ? ? ? SALT (Solar) Densifier 1 0 0 E BROMIDE (Naar) 8~ Brine Solution Densifier 1 0 0 F POTASSIUM CHLORIDE - Shale Inhibitor 1 0 0 E IFE • • Marathon Oil Company Well Name: Ninilchik State #1 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammability Reactivity PPE CAUSTIC SODA Ikalinity control 3 0 1 X CAUSTIC POTASH pH Modifier 3 0 1 X BORAX Inorganic Borate 1 0 0 E SAPP Sodium Pyrophosphate *1 0 0 E SODA ASH Ikalinity control 1 1 0 E SODIUM BICARBONATE Ikalinity control 1 0 0 E CITRIC ACID pH Adjuster 1 0 0 E BIOBAN BP-PLUS Biocide *2 0 0 J GREEN CIDE 25G - Biocide 3 0 0 J DEFOAM X- Defoamer 1 1 0 J G-SEAL Sized graphite LCM 1 1 0 E KLA-GARD Shale Control agent 0 1 0 J LUBE TEX Lubricant 1 1 0 J D-D CWT Detergent 2 1 0 J Concor 404 Corrosion Inhibitor 1 1 0 J SAFEKLEEN Drilling fluid additive 1 1 0 J sphasol D Shale Inhibitor 1 1 0 J Soltex Shale Inhibitor 1 1 0 J Sodium Meta Bisulfate Oxygen Scavenger 1 1 0 J IFE L ~ ~~ • Marathon Oil Company Well Name: Ninilchik State #1 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 -Severe hazard 3 -Serious hazard 2 -Moderate hazard 1 -Slight hazard 0 -Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A -Safety Glasses B -Safety Glasses, Gloves C -Safety Glasses, Gloves, Synthetic Apron D -Face Shield, Gloves, Synthetic Apron E -Safety Glasses, Gloves, Dust Respirator F -Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G -Safety Glasses, Gloves, Vapor Respirator H -Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I -Safety Glasses, Gloves, Dust and Vapor Respirator J -Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K -Air Line Hood or Mask, Gloves, Full Suit, Boots X -Consult your supervisor for special handling directions ~~ • • '~ Marathon Oil Company Well Name: Ninilchik State #1 _ Location: Kenai, Alaska. Contacts Contact Title a-mail Work Cellular Pete Berga Drilling pkberga@marathonoil.com 907 565-3032 907 231-0663 Marathon Superintendent. Will Tank Drilling Engineer wjtank@marathonoil.com 713 296-3273 713 203-8398 Marathon Tony Tykalsky Project Engineer ttykalsky@miswaco.com 907 274-5011 907 227-2412 MI SWACO Richard Couey Warehouse Manager rcouey@miswaco.com 907 776-8680 907 252-4218 MI SWACO Michael Barry Senior Field gratefulmen@hotmail.com 907 260-4666 907 590-3636 MI SWACO Engineer (home) Locke Rooney Field Engineer rooneyl@alaska.net 907 235-0598 907 590-3636 MI SWACO (home) Roland Lawson / Drilling Foremen 907 283-1312 Larry Myers /Dave Morris Marathon Responsibilities - MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M-I field engineers. - Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. - Field Engineers will monitor and supervise product inventory to include re-palletizing any products for shipment to other locations at the end of the well. - Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). - Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. ~~ Marathon Oil Com an Directlnquiriesto: Check No Check Date Bank Bank No Vendor N p y ACCOUNTS PAYABLE DEPARTMENT Hndig P. O. Box 3128 Accts Payable Contact Center 1162344 02!08!2005 NCBAS 7780 5001123 Houston, Tx 77253 phone: 918-925-6097 HS 100.00 102/08/2005 119000078841TOTAL: 1 100.001 1 1 i i~'000 L ~6 2 344i~' x:04 L 20 389 5~: 0 L8 3484~~' • • TRAANMMITAL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/PARAGRAPHS TO BE INCLUDED TN TRANSMITTAL LETTER WELL NAME ~• //f~ % / ~~ /~ ~~ ~ PTD# ~" 5 _ a Z ~ Development Service Exploration Stratigraphic CHECK WAAT ADD-OHS Kfa.,1.JE". APPLIES OPTION • MiJLTI ~ The permit is for a new wellbore segment of LATERAL, eYisiing well . Permit No, AP'1 No. . (lf API number Production. should continue to be reported as • last two. (2) digits a function•of the original API number stated are between 60-69) above. PILOT I30LE ]n accordance with ~ 20 AAC 25.0050, all (P3~ records, data and logs acquired. for ibe pilot bole must be clearly differealiated 'in both • name (name on permit plus PIS and API inumber (50 - 70/80) from records, data sad logs acquired • for well (name on permit). SPACING The permit is approved subject •io fu0 EXCEPTION compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing eiception. SComaanv Hamel assumes the liabiBty of any protest to the spacing •eYCeption that may occur. • DRY DITCH • All dry ditch sample sets submitted to the %'~ SAMPLE Commission must be in ao greater tbsa 30' • sample intervals from below ibe permafrost or from where samples are first caugLl and . 70' sample intervals through target zones. WELL PERMIT CHECKLIST Field & Pool NINILCHIK, GO TYONEK UNDEF GAS - 562540 Well Name: NU - NINILCHIK ST 1 _ Program Well bore Beg ^ PTD~:2050230 Company MARATHON OIL CO _ Initial ClasslType / GeoArea 820 Unit 51432 OnlOff Shore On Annular Disposal ^ Administration 1 Pe[mitfeeattached___________________..-____-.- --___------__Yes-- -__.- -- - - -- - 2 lease number appropriate- - - - - - - - - - - - - - - - - - - - - - -Yes - - _ - Surface location in ADL 3$4305; top- prod int_& TD in ADL 3$9180,-both-of which are within the Ninilrhik-Unit, - - - 3 Unique well_name and number _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ - _ _ .Property line nearest the targetzone is ADL 3891 80 1 384305-boundary, across which ownership does not change. 4 Well located in a_defnedpool__-_--___-------------- -------------- No-__ -_- _UndefinedTyonekgas-pool-___-____-- -- -- -- 5 Well locatedp(operdistanoef[omdrillingurih-boundary---------- -------------Yes-- --------------------,--------------.-------------------- -- 6 Well located pr_operdistance_fromotherwells--_______-__- _--_---_--___Yes__ _____-__--------------__---- 7 Sufficient acreage ayail_able in-drilling unit- , _ - Yes - _ - . _ - - - - - - - - - - 8 If deviated,is_wellboreplat_included___________________- -____--__---- Yes_- --_-------______ - - -- - -- 9 Ope[atoronlyaffectedparty------------------------ -------------Yes-- ---------- ------------------------------------------------------------ 10 9peratorhas-appropriate-bond inforre ------------- --- ------------ Yes-- -- -------- ---------------- ------ --- -- ------------------------ - 11 Permit-can be issued without conservation order-------------- ---------_---Yes__ -- -- ___._-_--_---______-__--,-__--__ -- - Appr Date 12 Permiteanbeissuedwithoutadministrativeapproval_____-_--_- Yes-- - -------------------------- ---- - - - - SFD 2/18!2005 13 Can permit be approved before 15-day wait Yes 14 Well located within area and_strata authorized by_Injection Order # (put_1 O# in-comments)_(For_ NA_ _ _ _ - - -- -- 15 All wells within 114-mile area_of review ident~ed (For service well only) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA_ _ _ - .. - .. _ .. _ , - _ _ - - . _ _ .. - 16 Pre-produced injector- duration ofpre-production less than-3 months-(Forservice well only) _ _ NA- _ _ - - - _ _ _ - -- - 17 ACMP-Finding of Con_sistency_has been issued fo[this project- - _ - - NA_ --.. The.original NinilrhikState 1 well (PTD 202-130) was deemed consistet 9/1712002, but was never drilled.- Engineering 18 Conductor string-provided - - " _ _ Yes _ _ -- _ _ _ _ . 20" ~ 121'. - _ - - _ _ _ -'- - - - - - - - - - - - - - - - 19 Surface casing_prQtec_tsoll known- l1SDWs - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Yes - - - _ _ - - Surface rasing Betas proposed will meetthe intentof 20 AAC 25.030 to prokect-known or potential USDWS."- SFD 20 CMT_vol_adequate_to cifculate-on conductor-& surf-csg _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ " - - -Yes _ - _ - _ - "Adequate excess. - _ : - ; - - - _ - - - _ - - ------------------------------------------ 21 CMT_vol adequate-to tie-in long string tosurf rsg_ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ - _ - _ - _ - - , - -- - - 22 _C_MT-willco_verallknownproductiyehorizons________________ ______________Yes__ -- ___--. 23 Casing designs adequate for C,T,B&_permafrost------------- -------- -Yes-- ----------------------------.----------,-------------- 24 Adequate tankage-orreserye pit___..-______---_ Yes__ ____-GlacieCRig1,______----------------- --- -- - 25 If a_re~lrill, has-a 1.0.403-for abandonment been approved - - NA_ New well -- - 26 Adgquatewellboreseparationproposed__________________ ______________Yes__ __-__-__-----____-_-,-__-- _-.- _ ---------------------------- -- 27 Ifdiverterrequired,doesitmeetregulations___-_,_--------- -------------- Yes__ --- ------- -_--_-___ - - Appr Date 28 Drillingfluid-pr°gramschematic&equiplist adequate----------- --------------Yes_- ---..MaxMW_9,Sppg,_-_-___-,-_--_-__.--_-_--__----- _ WGA 2122!2005 29 BOPES,dotheymeetregulation----------------------- -----_- Yes-- _____----- -- - - -- 30 BOPE_press rating appropriate; test to-(put prig in comments)- - - . ... - - - - Yes - - Test to 2500 psi. _MSP 2070 psi.- , - _ - - _ - - - 31 Choke-manifold romplieswlAPI-RP-53 May $4) _ Yes _ _ - - - _ - 32 Work willoccurwithoutoperationshutdown_-._--__---_--_ --------------Yes_- - .-____-----__-----_---_- __-- - - - - 33 1s presence of H2S gas probable. - - - N0 - - - - - - - - 34 Mechanical condition of wells within AOR verified (For_service well onlya _ - , _ _ - - NA_ _ - - _ -- - -- - - - Geology 35 Pe[mitcanbeissuedw/ohydrogegsulfidemeasures---____-,_ __-_____-_-_Yes_- __-_-H2Snotanticipated--------------- ----- ------------------ 36 Data-presented on_potential overpressure zones- _ _ _ _ - - Yes _ Expected pressure 8.4-- 9,2 ppg;will bedrilled_with 8,6-to 9.4_ppg mud & mudlogged below 1,770' MD, _ _ _ _ _ Appr Date 37 Seismic analysis of shallow gas-zones- - - - _ _ - _ _ _ No- - - _ _ - - _ Based on rffsetwells,eas-bearing sands-expected below 1,830' MD. _ _ _ SFD 2118/2005 38 Seabed conditionsurvey_(ifoff-shore)_--_--__-_--------- --------------NA-__ _ - - - - _ - - - _ ----------------------------------------------------------------- 39 .Contact namelphone for weekly progress-reports [exploratory only]- . _ - - - - _ NA_ ------- Geologic Commissioner: Engineering Public Date Date: Commissioner: Date C i i n "Justification is found in PTD 202-103 file. Surface rosin will be set at -1769' MD 1500' TVD in the Belu a Formation, at a ( ) ^~ „ s /- ` ~ s o er ~ location 500' offshore. The deepest water Weil registered with DNR in vicinity is 276 (all others are less than 160'), and deepest water well in S. Kenai Penninsula is <500'. Although the estimated salinity at the proposed casing shoe is less than ~ G{L1~ ~ ~~ the 10,000 ppm freshwater cut-off, Marathon's proposed casing program meets the intent of the casing regulations because water at this deoth is not now an economically feasible source of drinking water. nor will it be in the forseeable future. SFD • n