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Home My WebLink About205-039 Maunder, Thomas E (DOA) From: Silfven, Laurie A (DEC) Sent: Wednesday, July 02, 2008 9:55 AM To: Maunder, Thomas E (DOA) Subject: RE: Kerr-McGee -Anadarko Two Bits and NW Milne wells Thank you, Tom! Laurie Silfven Ph: (907) 269-7540 From: Maunder, Thomas E (DOA) Sent: Wednesday, July 02, 2008 8:26 AM To: Silfven, Laurie A (DEC) Cc: Gould, Greg M (DEC); 'Bob Britch'; Foerster, Catherine P (DOA) Subject: RE: Kerr-McGee -Anadarko Two Bits and NW Milne wells • Page 1 of 2 ~~os-p39 Laurie, et al', As requested, t have competed a fife review of 8 Kerr-McGee operated exploration penetrations that were drilled and plugged and abandoned nominally in 2Q 2004 and 2Q 2005. Total work accomplished was 6 grass-roots wells and 2 redrills as listed below. Permit # Well Name 204-018 204-038 204-249 205-025 204-2so 205-001 20 9 205-056 Nikaitchuq #1 Nikaitchuq #2 Tuvaag State #1' Kigun #1 (redrill of Tuvaaq State #1) Nikaitchuq #4 Nikaitchuq #3 Ataruq #2 Ataruq #2A (redrill of Ataruq #2) ~~~~~ JUL ~ ~ 2~~$ Based. on the file review, it is my opinion that these wells were. plugged and' abandoned' according to the requirements of 20 AAC 25.1.12 {plugging-all wells), 20 AAC 25.120 (well abandonment. marker, onshore well Ataruq 2/2A), 20 AAC 25.170 (onshore location clearance, Ataruq ?12A) and 20 AAG 25,172 (offshore location clearance, remaining wells). Please contact me if further information is needed. Tom Maunder, PE Sr. Petroleum Engineer AOGCC From: Silfven, Laurie A (DEC) Sent: Thursday, June 26, 2008 11:38 AM To: Maunder, Thomas E (DOA) Cc: Gould, Greg M (DEC); Bob Britch Subject: Kerr-McGee -Anadarko Two Bits and NW Milne wells Hi Tom, We received a request from Anadarko to rescind two Anadarko (formerly Kerr-McGee) exploration oil discharge prevention and contingency plans. The contingency plans are for Two Bits (Ataruq) and Northwest Milne Point (Nikaitchuq). In order to do this, we need AOGCC verification that the wells were properly abandoned. Bob Britch, consultant for Anadarko, let me know that an a-mail request to you would be sufficient. According to 7/2/2008 • Page 2 of 2 Bob, the drilling performed for the two plans essentially covered two exploration wells from the Two Bits (Ataruq) Prospect and six exploration wells from the NW Milne Point (Nikaitchuq) Prospect. At your convenience, please provide confirmation that all wells were properly plugged and abandoned. Thanks! Laurie Laurie Silfven Alaska Department of Environmental Conservation Exploration, Production & Refineries Section 555 Cordova Street Anchorage, AK 99501 Ph: (907) 269-7540 Fax: (907) 269-7687 E-mail: Laurie. silfven@alaska. gov 7/2/2008 • ~~~ ~ . ~,. \ ,.~ "' :` F:iLaserFiche\CvrPgs_h~serts\Microfilm Marker.doc 17 ,vLo-~ DATA SUBMITTAL COMPLIANCE REPORT 5/2/2007 Permit to Drill 2050390 MD 7400 ~~-~ Well Name/No. Ataruq 2 Operator KERR-MCGEE OIL & GAS CORP API No. 50-103-20508-00-00 TVD 6124 Completion Date 4/17/2005 Completion Status P&A REQUIRED INFORMATION Mud Log Yes Samples No ~._--~-"._-_._-"--_.,'_._----- Directional survey~ DATA INFORMATION ~-~-,------_..,_.._._.-.---.-.---.-.---_._- ----_..~~.~_..~~-~-~_._-_._-~-~._--~-~ Types Electric or Other Logs Run: See 10-407 Too lengthy for block Well Log Information: Log/ Data T~ (./Cog Electr Digital Dataset Med/Frmt Number Name ---,-'"'---_._-~ Downhole Equipmen Run No 1 / ~ i~/ ~c Log ..-Log 1\1\ t) ¡./~ Log ìv~ Log ... ~ C Lis ~. C Lis uIog Log Log Scale Media "._-_.._._._-"----~---_.,_._-- Blu Formation Micro Ima 5 Blu Formation Tester Col Gamma Ray 13143 Report: Final Well R See Notes Mud Log Mud Log Mud Log Mud Log 13216 See Notes 13217 See Notes See Notes 5 Blu 2 Col 5 Col 1-3 5 Col 1-3 2 Col 1-3 2 Col 1-3 5 Col Current Status P&A UIC N ---.-..-.-..--.----..------,.-.-....------ (data taken from Logs Portion of Master Well Data Maint Interval Start Stop 5413 6630 - OH/ CH Open 3319 7400 Received Comments 4/27/2005 MODULAR SIDEWALL CORING TOOL ROTARY CORES Open 4/27/2005 FORMATION MICRO IMAGER/DIPOLE SONIC/FORMATION IMAGE AND BOREHOLE GEOMETRY Case 4/27/2005 MODULAR FORMATION DYNAMIC TESTER/PRESSURE TESTS AND SAMPLING Open 4/27/2005 SPECTRAL GAMMA RAY TOOL FMI-DSI-NGT 5421 6628 3319 7400 0 0 Open 6/1012005 End of Well Report 100 7400 Open 6/10/2005 Engineering Log - 217 7400 Open 6/10/2005 MD Combinmation Mud Log 217 7400 Open 6/10/2005 MD Combinmation Mud Log 217 7400 Open 6/10/2005 MD Combinmation Mud Log 217 7400 Open 6/10/2005 MD Combinmation Mud Log 3319 7346 Open 6/28/2005 Field Data- MDT/MSCT/HRLA 3319 7400 Open 6/28/2005 Field Data-FMIIDSI/NGT 3319 7346 Open 6/28/2005 Dipole Shear Sonic Imager "DSI" DATA SUBMITTAL COMPLIANCE REPORT 5/2/2007 Permit to Drill 2050390 Well Name/No. Ataruq 2 Operator KERR-MCGEE OIL & GAS CORP API No. 50-103-20508-00-00 MD 7400 TVD 6124 Completion Date 4/17/2005 Completion Status P&A Current Status P&A UIC N j~- t> u.yJ r¿..i\V-1 See Notes 5 Col 5413 6630 Open 6/28/2005 Modular Sidewall Coring Tool (Rotary) r:õ9"" C v..p t '^~ V", Formation Tester 5 Col 5421 6628 Case 7/28/2005 Modular Formation Dynamic Tester, Pressure Tests & Sampling vr6g Formation Micro Ima 5 Col 3319 7400 Open 6/28/2005 Formation Image & Borehole Geometry ~. I nd uction/Resistivity 2 Col 3319 7400 Open 6/28/2005 High Resolution It Laterlog/Dipole Sonic ~ Gamma Ray Spectro 5 Col 3319 7400 Open 6/28/2005 Spectral GR FMI-DSI-NGT I nd uction/Resistivity 5 Col Ã /'1» 3319 7400 Open 6/28/2005 High Resolution ,X LaterloglDipole Sonic ~nduction/Rr\;.,[¡vlry -" 2 Col 3319 7400 Open 6/28/2005 High Resolution Laterlog/Dipole Sonic 9( I ndu l-11U11tR.",,,,¡,,,Uvify 5 Col 3319 7400 Open 6/28/2005 High Resolution -.." LaterloglDipole Sonic ~ D Asc Directional Survey 30 7400 Open 9/26/2005 IIFR B!< Directional Survey 30 7400 Open 9/26/2005 IIFR ~ttDc 13357 Report Final Well R 0 0 Open 1 0/20/2005 Directional Drilling & ¡¿ MWD/LWD Services C 13144 Report: Final Well R 0 0 Open Second copy of Data Set # 13143 ~ I ndu ction/Resistivity 2 Col ).1~[) 217 7400 Open 11/2/2005 ROP DGR EWR II&g I nd u ction/Resistivity 2 Col ,.1.z.ß' h1::> 217 6124 Open 11/2/2005 ROP DGR EWR e ~g Induction/Resistivity 5 Col )" 1~/>f1) 217 7400 Open 11/2/2005 QUAD Combo ROP DGR EWR CTN ALD æ69 I nd uction/Resistivity 5 Col -}1-%e5 't VI) 217 6124 Open 11/2/2005 QUAD Combo ROP DGR EWR CTN ALD .J<Qg I nd uction/Resistivity 5 Col 1~ >""~17 7400 Open 11/2/2005 ROP DGR EWR GOM(Gulf of Mexico) Format ~g Pressure Col 1-2-3 217 7400 Open 11/2/2005 ROP DGR EWR PWD Temperature ~ C Las 13362 I nd uction/Resistivity 100 7400 Open 11/2/2005 ROP DGR Des CTN DRHO LAS & DLlS formats Plus Graphics Permit to Drill 2050390 MD 7400 TVD 6124 Well Cores/Samples Information: Name ADDITIONAL INFORMATION Well Cored? r----YìrJi) Chips Received? Y / N Analysis Received? ~. Comments: Compliance Reviewed By: DATA SUBMITTAL COMPLIANCE REPORT 5/2/2007 Well Name/No. Ataruq 2 Operator KERR-MCGEE OIL & GAS CORP API No. 50-103-20508-00-00 Completion Date 4/17/2005 Completion Status P&A Interval Start Stop Sent Received Daily History Received? Formation Tops -------_. -----~-- ik Current Status P&A UIC N Sample Set Number Comments Cores and/or Samples are required to be l submitted. This record automatically created from Permit to Drill Module on: 3/23/2005. WN G>/N Date: ÄÆ ~ M~1 e - e ~~&~E @F ~~~~~& 2OÇ. D3ï DEPT. OF ENVIRONMENTAL CONSERVATION DIVISION OF SPILL PREVENTION AND RESPONSE INDUSTRY PREPAREDNESS PROGRAM Exploration Production & Refineries SARAH PALIN, GOVERNOR 555 Cordova Street Anchorage, AK 99501 PHONE: (907) 269-3094 FAX: (907) 269-7687 http://www.dec.state.ak.us April 23, 2007 RECEIVED File No.: 305.30 Kerr McGeel~ ctt<&iª:O07 Mr. Stuart Wittenbach Anadarko Petroleum (formerly Kerr-McGee Oil & Gas Corporation) 16666 Northchase Drive Houston, TX 77060 Alaska Oil & Gas Cons. COfJIIIission Anchorage Re: Oil Discharge Prevention and Contingency Plan for Exploration Drilling at Ataruq Prospect (formerly Two Bits), North Slope, Alaska, Plan Number 054-CP-5108 Dear Mr. Wittenbach: The above-referenced oil discharge prevention and contingency plan (plan) is an Alaska Department of Environmental Conservation (ADEC) approved plan, even though exploration activities have not been conducted since 2005. The plan will expire on November 4,2009. In January of this year, I sent an email to you with a letter outlining the guidelines for implementing our recently promulgated pollution prevention regulation revisions. I have attached a copy of the letter for your convenience. Please be aware that significant revisions to the Ataruq plan must be submitted to ADEC by August 1, 2007. This is a good time for Anadarko to consider whether further exploration activities will be conducted under this plan. If not, I suggest that you submit a request to rescind the plan before August 1, 2007. ADEC can consider a request to rescind your plan once the following issues are addressed: a. Wells must be adequately plugged and abandoned in accordance with Alaska Oil and Gas Conservation Commission (AOGCC) regulations. Please contact the AOGCC regarding the appropriate P&A requirements for your welles). ADEC must receive confirmation, in writing (email is adequate) from the AOGCC that the abandoned welles) meet their requirements; OR b. You must request a determination from AOGCC that the well has not penetrated a formation capable of flowing oil to the ground surface. AOGCC will send the determination to ADEC. c. Once item (a) or (b) is completed, ADEC will be able to determine that AS 46.04.030 (Oil Discharge Prevention and Contingency Plans) and AS 46.04.040 (Proof of Financial Responsibility) no longer apply to this facility since no additional exploration, production or drilling activity into potential oil bearing zones will be performed. AS 46.04.900(8).When we make the determination that the provisions of AS 46.04.030 and AS 46.04.040 do not apply, then you can request a modification of the plan approval, such as to rescind that approval. Anadarko, not a contractor or consultant, must request the rescission of the plan approval in writing. ,:) Printed un Re';)'.:!·;.' e e Mr. Stuart Wittenbach Anadarko Petroleum 2 April 23, 2007 Once the requirements described above are met, ADEC can officially rescind the Oil Discharge Prevention and Contingency Plan (ODPCP) for Ataruq exploration. If you have any questions regarding this process, please contact me at (907) 269-7680. Sincerely, ~~ Section Manager Attn: January 23,2007 letter re: implementation of new oil pollution prevention regulations cc: Betty Schorr, Industry Preparedness Program Manager, ADEC Laurie Silfven, EPR, ADEC Chris Pace, Financial Responsibility, ADEC Tom Maunder/Steve Davies, AOGCC Bob Britch I f ~~A~E or AJA~KA DEPT. OF ENVIRONMENTAL CONSERVATION DIVISION OF SPILL PREVENTION AND RESPONSE INDUSTRY PREPAREDNESS PROGRAM SARAH PALIN, GOVERNOR 555 Cordova Street Anchorage, AK 99501 PHONE: (907) 269-3094 FAX: (907) 269-7687 http://www.dec.state.ak.us January 23,2007 Via email Fax Oil Discharge Prevention and Contingency Plan Holder Subject: Implementation of New Oil Pollution Prevention Regulations (18 AAC 75) Dear Plan Holder: On December 1, 2006 the Lieutenant Governor signed into law new regulations. regarding oil pollution prevention. These regulations became effective on December 30, 20Q6, and several of them will impact how you operate and also your oil discharge prevention and contingency plan (C-Plan). This letter provides guidance on how the Alaska Department of Environmental Conservation (ADEC) will implement the new regulations, and how you may ensure continued compliance. A copy of the new regulations can be found on-line at http://www.dec.state.ak.us/spar/ipp/ docs/18AAC7 5 Art! Dec2006. pdf. The effects of the new regulations generally fall into two categories: 1. Changes in required pollution prevention methods and means as described in 18 AAC 75 Article 1, and 2. Changes in the format and content required in the C-Plan, as described in 18 MC 75 Article 4. ADEC's regulations at 18 MC 75 Article 1 pertain to oil pollution prevention activities, such as personnel training, design and construction of oil storage tanks and piping, and inspection of tanks and piping. Most of the revisions to the regulations are effective as of December 30, 2006. The exceptions include some regulations that involve development of a program, such as a preventative maintenance program for flow lines, which have a one year phase-in period, and design and construction standards for new construction, which generally have a two-year phase- in period. Table 1 provides general guidance to implementation of the regulations in 18 AAC 75 Article 1. This implementation schedule covers general subject areas only and is not meant to be fully inclusive. It is incumbent upon you as a plan holder to review the changes to the regulations and take appropriate actions to maintain compliance. e ". 2 eplementation 18 AAC 75 ,J January 23, 2007 ~ \ Compliance Date December 30, 2006 December 30, 2007 December 30, 2008 Regulation General 18 AAC 75.047(c) 18 AAC 75.047(d) 18 AAC 75.047(e) 18 AAC 75.065(h), 18 AAC 75.065(i) 18 AAC 75.0800) 18 AAC 75.045(d) 18 AAC 75.047(b) 18 AAC 75.065(g) 18 AAC 75.0650) 18 AAC 75.065(k) 18 AAC 75.065(m) 18 MC 75.066 18 AAC 75.080(c) 18 AAC 75.080(e) 18 AAC 75.080(f) Subject Inspections and operational activities listed in 18 AAC 75 Article 1 without a phase-in date (previously existing and new regulations). Corrosion control programs for flow lines. Preventative maintenance programs or leak. detection for . flow lines. Line markers for flow lines. Operation and maintenance of cathodic protection . systems on field-constructed aboveground oil storage. tanks. Maintenance and inspection of facility oil piping. Design and installation of wellhead sumps at production. or exploration wells. Design and construction standards for flow lines. Installation öf internal lining systems on field- constructed aboveground oil storage tanks. Design, construction, and installation of field- constructed aboveground oil storage tanks. . High liquid level alarms on field-constructed aboveground oil storage tanks. Cathodic protection systems for field-constructed . aboveground oil storage tanks. Shop-fabricated aboveground oil storage tanks. Design and construction standards for facility oil piping. Construction and installation of buried facility oil piping. Cathodic protection systems for facility oil piping. Changes to your C-,Plan fonnat and content will be implemented according to the schedule. in Table 2. Allplan holders must submit an amendment to the Department incorporating changes to their plan due to the revisions to Article 4 regulations no later than August 1, 2007. Î . ~...'"'}...'i. "[f~. '7 _~ . _" t . e 3 ~lementation 18 AAC 75 January 23, 2007 ".~. ...'. ··;¡rrr.O<l~~.!Ir.'.-; '~_...~- .....:.,'-'.-- ·~¡~l;k;;I"'i"...iì <, .~)>-: .. . ~ '". ':l 'tt~'V ,'-,,' .j; :6:-'~':~'" -_.'.- iI¡¡, ~~ . r"... -... ,. --...~,.:..__I·' _......'- ," --. Edits to these plans may be submitted to meet the ~ew regulations bef~;~ approval or changes to these plans must be submitted to meet the new regulations no later than August 1, 2007. C-Plans Currently in Review or Submitted for Review before May 15,2007 C-Plans Currently Approved or Submitted for Review after May 15,2007 If your C-plan expires within 3 months of the date of this letter, please contact the Section Manager for your review and discuss your amendment options with himlher. Changes to currently approved C-Plans to meet the new regulations (detailed in 18 AAC 75.425) may be submitted with the new or renewal application, if it is submitted by August 1, 2007. Revisions to ALL PLANS must be submitted to ADEC no later than August 1, 2007. Please contact the appropriate section manager for your facility if you have any questions. Sincerely, ~ "- Betty Scho Industry Preparedness Program Manager . . WELL LOG TRANSMITTAL To: Alaska Oil & Gas Conservation Commission 333 West ih Avenue, Suite 100 Anchorage, AK 99501 Attn: Librarian November 1,2005 RE:MWD Formation Evaluation Logs - Kerr-McGee Ataruq#2 API #: 50-103-20508-00-00 AK-MW-0003637543 Ataruq#2: 2" MD DGR I RES: 2" TVD DGR I RES: 5" MD Quad Combo: 5" TVD Quad Combo: 5" MD DGR I RES (GOM Format) Logs: 2" MD PWD wI Temperature Logs: CD ROM with Graphic Images & LWD-DLIS/LAS data of above logs: 2 Color Prints c....-- 2 Color Prints - 2 Color Prints 0/ 2 Color Prints ...... ...... 2 Color Prints 2 Color Prints /" 1 CD Rom "..-- =f/)J~).; PLEASE ACKNOWLEDGE RECEIPT BY SIGNING AND RETURNING THE ATTACHED COPIES OF THE TRANSMITTAL LETTER TO THE ATTENTION OF: Sperry Drilling Services Attn: Rob Kalish 6900 Arctic Blvd. Anchorage, Alaska 99518 Fax: (907) 273-3535 Date: ~ ~tv ~a~ b Signed í1J (JW ^<J)"-01<1 FJ-c. . . 21-Sep-05 Alaska Oil & Gas Conservation Commission 333 W. yth Ave., Suite 100 An.chorage, AK 99510 DEFINITIVE Re: Distribution of Survey Data for Ataruq #2 Attn: Librarian: Enclosed are 1 survey hard copy(s) and a disk with the *.NO, *.PTT, and *.PDF files. Tie-on Window t Kickoff Projected Survey: 30.42 I MD Nt A ' M D (if applicable) 7,400.00 ' MD PLEASE ACKNOWLEDGE RECEIPT BY SENDING AN EMAIL TO CARL.ULRICH@HALLlBURTON.COM OR SIGNING AND RETURNING A COPY OF THE TRANSMITTAL LETTER TO THE ATTENTION OF: Sperry-Sun Drilling Services Attn: Carl Ulrich 6900 Arctic Blvd. Anchorage, AK 99518 Date /t~~~'- /}/ 11 r1l/ j Signed ~lJþ.,fJ Please call me at 273-3545 if you have any questions or concerns. Regards, Carl Ulrich Survey Manager ^ ~S-- (J V:t · · ALAS.LAND~:;~g~S~~~ONCOMMI. R;~;;;:O WELL COMPLETION OR RECOMPLETION REPORT AND LOG . ' omm¡SSlon ..} 1a. Well Status: OilU GasU Plugged L:J Abandoned L:J Suspended U WAGU 1b. Well Class:t,Jaska 011 & b~¡; t,(j¡¡"'· 20AAC 25.105 20AAC 25.110 Development 0 ExrA~ GINJD WINJD WDSPL 0 No. of Completions Other Service 0 Stratigraphic Test 0 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Kerr McGee Oil & Gas Corporation Aband.: 4/17/05 205-039 3. Address: 6. Date Spudded: 13. API Number:Sb~/Oh1ð$o'-oð 3900 C Street, Suite 744, Anchorage, AK 99503 4/4/05 - 50-6?Q- ~ -uu 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 477' FNL & 1835' FEL, See 8, T11N, R8E, UM 4/11/05 - Ataruq # 2 ... Top of Productive Horizon: N/A 8. KB Elevation (ft): 15. Field/Pool(s): 105 ft Total Depth: 7400' MD; 6124' TVD in Kuparuk Interval 9. Plug Back Depth(MD+TVD): Exploration 2366' FNL & 1435' FEL, See 5, T11N, R8E, UM 3100 feet TVD for STH 4b. Location of Well (State Base Plane Coordinates): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 480,716 E .- y- 5,969,528 N .- Zone- 4 ' 7,400' MD 1 6,124' TVD . ADL 390502 TPI: x- N/A &.\, "'- '\ y- N/A 6<17)/j¡<g 11. Depth Where SSSV Set: 17. Land Use Permit: Total Depth: x- 484,107 E y- 6,457,129 N A .. I Zone- 4 n/a 18. Directional Survey: Yes LJ No 0 !J~ 19. Water Depth, if Offshore: 20. Thickness of Permafrost: N/A feet MSL 1452' MD 11452' TVD 21. Logs Run: Surface hole: MWD Directional/Cassandra Surveys; LWD Triple Combo. Production Hole: MWD Directional Cassandra Surveys; E- Line. Run #1 FMI-DST-NGP; Run # 2 HRLA/CMR; Run #3 MDT; Mud Log: from Surface to TMD. 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT. GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 13-3/8" 68# L-80 33' MD 113' MD 33' TVD 113' TVD Drive Pipe n/a 9-5/8" 40# L-80 33' MD 3,319' MD 33' TVD 3,051' TVD 12-1/4" 520 sx Permafrost L (385 bbl) 0' & 300 sx G (60 bbl) 23. Perforations open to Production (MD + TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) none .- n/a 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED n/a 26. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): none Date otTest: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: I Gas-Oil Ratio: Test Period ... Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity - API (corr): Press. 24-Hour Rate ..... 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". ""-"-::-- RBDMS BFL MAY 2 5 2005 ¡ C()J\10i £i-'rw 1 ; '..·.1 ~ dJ , DðTt:: i -!(. ~'''''' RBDMS 8Fl MAY 2 5 2005 OR\r\~\AL ' .:.--1.:1..:.ë5 \ ;,; VE¡:UFlED '\ u\\\¡ ¡..~~ ~e Form 10-407 Revised 12/2003 CONTINUED ON REVERSE G NAME GEOLOGIC MARKERS MD . TVD 29. FORMATIO.S Include and briefly summarize test resu intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". ,2$. "NONE" Base Permafrost T / Colville T/ Middle Brookian T/Tarn T /Moraine T/HRZ T/Kuparuk LCU T/Kuparuk A TOTAL DEPTH 1453' 3199' 5404' 5800' 6565' 6748' 7195' 7205' 7205' 7400' 1453' 3002' 4613' 4907' 5466' 5606' 5957' 5965' 5965' 6124' 30. List of Attachments: Final Well bore Diagram, Final Survey Report, Operations Daily Summarry 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: S. Coyner, 339-6269 Printed Name: Stuart Boggan Title: Drilling Manager / Kerr McGee Oil & Gas Corp. Signature: ~--/ ~ b1 Phone: (907) 339-6370 Date: S k, r Cc:> 7n f?r-- INSTRUCTIONS -?:~~f;-ð S- General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for I njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 , " _ Surf 1000' 1452' - 2000' _ 3000' c > I- _ 4000' ..... :~~~ ,.... ..... ,.... ..... '~~{ I Rig RKB :::: 105ft Pad Elev:::: 72 ft Ataruq #2 (P & A) Plu~s #1 & #2: 1100' MD, 25% Excess, 96.5 bbl, 471 sx of Premium Cement. Tag Plug #2 as directed Plug #3,3120' to 3620', caliper (8.9") +15% Excess 41.7 bbl, 204 sx Premium + CaClz TOC :::: 5200' MD ---·-'-·-·--·M. Brookian at 5404' MD 14613' TVD-'-'-'-' -·---'-·-·-·-·U. Tarn at 5800' MD 14901' TVD-·-·-·--·----·-·- b.,., -:~ c' _ 5000' ~<, f.1 rr-fJ... 13-3/8", 68#, L·BO Conductor 12-1/4" Hole 9-5/8", 40#, L-80, BTC 3319' MD 1 3051' TVD " " " " " " -'-'--'--'-'-'l, Tarn at 6210' MD 15207' TVD-'-'-'-'-'-'-'-'-'-'-'-'-'-' 8-1/2" Hole -':':':-6Õ'õ01' - .-.- 'Kuparuk Cat 1195' MD 1 5951' TVD-' -'-' -.- -.-.-.-. -. -.-.- ._. -.-. -.-.- _ 7000' 1400' MD 16124' TVD S. Coyner: 4/14/2005 . . Halliburton Global Survey: Start Date: Company: Engineer: Tool: Tied-to: Field: Ataruq Map System:US State Plane Coordinate System 1927 Geo Datum: NAD27 (Clarke 1866) Sys Datum: Mean Sea Level Map Zone: Coordinate System: Geomagnetic Model: Alaska, Zone 4 Well Centre bggm2004 Site: Ataruq Site Position: Northing: 5969528.36 ft Latitude: 70 19 40.485 N From: Map Easting: 480716.30 ft Longitude: 150 9 23.000 W Position Uncertainty: 0.00 ft North Reference: True Ground Level: 0.00 ft Grid Convergence: -0.15 deg Well: Ataruq #2 Slot Name: Well Position: +N/-S 0.00 ft Northing: 5969528.36 ft Latitude: 70 19 40.485 N +E/-W 0.00 ft Easting : 480716.30 ft " Longitude: 150 9 23.000 W Positiou Uncertainty: 0.00 ft Wellpath: Ataruq #2 501032050800 Current Datum: Ataruq#2: Magnetic Data: 4/2/2005 Field Strength: 57568 nT Verticat Section: Depth From (TVD) ft 0.00 +N/-S ft 0.00 Drilled From: Tie-on Depth: Above System Datum: Declination: Mag Dip Angle: +E/-W ft 0.00 Well Ref. Point 0.00 ft Mean Sea Level 24.08 deg 80.70 deg Direction deg 6.80 Height 102.62 ft Survey Program for Dermitive Wellpath Date: 4/26/2005 Validated: Yes Version: Actual From To Survey Toolcode Tool Name ft ft 146.15 7330.84 Ataruq #2 (146.15-7330.84) MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC Survey MD Incl Azint TVD Sys TVD N/S E/W MapN M~pE Tool ft d¡:¡g deg ft ft ft ft ft ft 30.42 0.00 0.00 30.42 -72.20 0.00 0.00 5969528.36 480716.30 TIE LINE 146.15 0.71 218.66 146.15 43.53 -0.56 -0.45 5969527.80 480715.85 MWD+IFR-AK-CAZ-SC 239.04 0.67 226.67 239.03 136.41 -1.38 -1.20 5969526.98 480715.09 MWD+IFR-AK-CAZ-SC 333.82 0.57 226.04 333.80 231.18 -2.09 -1.94 5969526.28 480714.35 MWD+IFR-AK-CAZ-SC 422.06 0.71 216.14 422.04 319.42 -2.84 -2.58 5969525.53 480713.71 MWD+IFR-AK-CAZ-SC 514.99 0.84 219.97 514.96 412.34 -3.82 -3.36 5969524.55 480712.93 MWD+IFR-AK-CAZ-SC 601.09 0.82 218.11 601.05 498.43 -4.79 -4.15 5969523.58 480712.14 MWD+IFR-AK-CAZ-SC 692.39 0.79 224.71 692.34 589.72 -5.75 -4.99 5969522.62 480711.29 MWD+IFR-AK-CAZ-SC 782.96 0.76 222.52 782.90 680.28 -6.64 -5.84 5969521.74 480710.45 MWD+IFR-AK-CAZ-SC 874.53 1.05 218.98 874.46 771.84 -7.74 -6.78 5969520.64 480709.51 MWD+IFR-AK-CAZ-SC 960.01 1.25 227.98 959.93 857.31 -8.97 -7.96 5969519.41 480708.32 MWD+IFR-AK-CAZ-SC 1052.85 1.31 230.94 1052.74 950.12 -10.32 -9.54 5969518.07 480706.74 MWD+IFR-AK-CAZ-SC 1148.98 1.59 226.51 1148.84 1046.22 -11.93 -11.36 5969516.46 480704.91 MWD+IFR-AK-CAZ-SC 1242.78 1.79 225.50 1242.60 1139.98 -13.85 -13.35 5969514.54 480702.92 MWD+IFR-AK-CAZ-SC 1336.85 1.54 215.21 1336.63 1234.01 -15.91 -15.12 5969512.49 480701.14 MWD+IFR-AK-CAZ-SC 1432.68 2.07 230.01 1432.41 1329.79 -18.08 -17.19 5969510.33 480699.06 MWD+IFR-AK-CAZ-SC 1526.01 2.15 228.27 1525.68 1423.06 -20.33 -19.79 5969508.09 480696.46 MWD+IFR-AK-CAZ-SC 1623.58 2.30 228.58 1623.18 1520.56 -22.84 -22.62 5969505.58 480693.62 MWD+IFR-AK-CAZ-SC 1717.97 2.22 226.51 1717.49 1614.87 -25.35 -25.37 5969503.08 480690.87 MWD+IFR-AK-CAZ-SC . . Halliburton Global Survey 1812.84 1.97 338.01 1812.33 1709.71 -25.10 -27.32 5969503.33 480688.92 MWD+IFR-AK-CAZ-SC 1906.46 7.53 7.49 1905.60 1802.98 -17.52 -27.12 5969510.91 480689.14 MWD+IFR-AK-CAZ-SC 1999.86 11.39 7.85 1997.71 1895.09 -2.31 -25.06 5969526.11 480691.24 MWD+IFR-AK-CAZ-SC 2094.43 14.30 10.37 2089.91 1987.29 18.43 -21.68 5969546.84 480694.67 MWD+IFR-AK-CAZ-SC 2186.87 17.37 12.54 2178.83 2076.21 43.14 -16.63 5969571.53 480699.78 MWD+IFR-AK-CAZ-SC 2281.99 20.98 13.42 2268.66 2166.04 73.57 -9.59 5969601.95 480706.90 MWD+IFR-AK-CAZ-SC 2375.23 24.25 15.03 2354.72 2252.10 108.31 -0.75 5969636.66 480715.83 MWD+IFR-AK-CAZ-SC 2470.04 29.20 15.70 2439.37 2336.75 149.40 10.56 5969677.72 480727.25 MWD+IFR-AK-CAZ-SC 2565.28 33.53 14.18 2520.68 2418.06 197.29 23.30 5969725.57 480740.11 MWD+IFR-AK-CAZ-SC 2659.74 37.99 11.91 2597.31 2494.69 251.06 35.70 5969779.30 480752.64 MWD+IFR-AK-CAZ-SC 2755.83 42.17 11.13 2670.82 2568.20 311.67 48.03 5969839.88 480765.13 MWD+IFR-AK-CAZ-SC 2849.43 45.63 10.99 2738.25 2635.63 375.36 60.48 5969903.53 480777.74 MWD+IFR-AK-CAZ-SC 2944.67 45.33 9.47 2805.03 2702.41 442.18 72.54 5969970.31 480789.97 MWD+IFR-AK-CAZ-SC 3036.21 45.15 7.77 2869.49 2766.87 506.44 82.28 5970034.54 480799.88 MWD+IFR-AK-CAZ-SC 3132.07 44.16 7.62 2937.68 2835.06 573.21 91.31 5970101.28 480809.07 MWD+IFR-AK-CAZ-SC 3227.17 42.34 6.67 3006.95 2904.33 637.86 99.42 5970165.90 480817.35 MWD+IFR-AK-CAZ-SC 3280.35 42.13 5.85 3046.32 2943.70 673.39 103.32 5970201.42 480821.34 MWD+IFR-AK-CAZ-SC 3401.90 42.15 5.38 3136.45 3033.83 754.55 111.30 5970282.55 480829.52 MWD+IFR-AK-CAZ-SC 3498.07 41.35 5.31 3208.20 3105.58 818.31 117.26 5970346.29 480835.65 MWD+IFR-AK-CAZ-SC 3588.83 40.59 4.69 3276.73 3174.11 877.59 122.45 5970405.55 480840.99 MWD+IFR-AK-CAZ-SC 3682.83 41.80 5.63 3347.46 3244.84 939.25 128.03 5970467.18 480846.73 MWD+IFR-AK-CAZ-SC 3778.29 41.32 5.59 3418.89 3316.27 1002.27 134.22 5970530.19 480853.08 MWD+IFR-AK-CAZ-SC 3871.66 42.62 6.17 3488.31 3385.69 1064.38 140.62 5970592.27 480859.64 MWD+IFR-AK-CAZ-SC 3961.62 41.73 5.82 3554.98 3452.36 1124.45 146.93 5970652.32 480866.10 MWD+IFR-AK-CAZ-SC 4056.74 41.14 6.15 3626.29 3523.67 1187.05 153.49 5970714.90 480872.82 MWD+IFR-AK-CAZ-SC 4152.70 42.48 6.67 3697.81 3595.19 1250.63 160.63 5970778.44 480880.13 MWD+IFR-AK-CAZ-SC 4248.81 43.69 7.74 3768.00 3665.38 1315.75 168.87 5970843.54 480888.54 MWD+IFR-AK-CAZ-SC 4343.36 42.99 7.79 3836.77 3734.15 1380.05 177.64 5970907.81 480897.47 MWD+IFR-AK-CAZ-SC 4437.80 43.80 7.01 3905.39 3802.77 1444.39 186.00 5970972.13 480905.99 MWD+IFR-AK-CAZ-SC 4533.04 43.20 6.69 3974.48 3871.86 1509.48 193.82 5971037.19 480913.97 MWD+IFR-AK-CAZ-SC 4626.72 42.69 6.82 4043.05 3940.43 1572.86 201.32 5971100.54 480921.64 MWD+IFR-AK-CAZ-SC 4721.29 41.77 6.05 4113.08 4010.46 1636.02 208.45 5971163.68 480928.93 MWD+IFR-AK-CAZ-SC 4814.26 42.84 6.41 4181.83 4079.21 1698.23 215.24 5971225.86 480935.88 MWD+IFR-AK-CAZ-SC 4909.24 42.22 5.86 4251.83 4149.21 1762.06 222.11 5971289.67 480942.91 MWD+IFR-AK-CAZ-SC 5002.24 43.43 6.76 4320.04 4217.42 1824.89 229.06 5971352.48 480950.03 MWD+IFR-AK-CAZ-SC 5095.18 42.64 6.05 4387.97 4285.35 1887.92 236.14 5971415.48 480957.26 MWD+IFR-AK-CAZ-SC 5188.62 43.79 6.31 4456.07 4353.45 1951.53 243.03 5971479.07 480964.32 MWD+IFR-AK-CAZ-SC 5282.76 43.12 5.98 4524.40 4421.78 2015.91 249.96 5971543.42 480971.41 MWD+IFR-AK-CAZ-SC 5366.23 42.35 6.55 4585.71 4483.09 2072.21 256.14 5971599.70 480977.74 MWD+IFR-AK-CAZ-SC 5471.94 41.53 5.84 4664.34 4561.72 2142.45 263.77 5971669.91 480985.54 MWD+IFR-AK-CAZ-SC 5568.15 42.97 6.28 4735.56 4632.94 2206.77 270.60 5971734.21 480992.54 MWD+IFR-AK-CAZ-SC 5662.33 42.14 5.91 4804.93 4702.31 2270.11 277.36 5971797.52 480999.47 MWD+IFR-AK-CAZ-SC 5757.45 41.33 5.56 4875.91 4773.29 2333.11 283.69 5971860.50 481005.96 MWD+IFR-AK-CAZ-SC 5852.50 41.99 5.83 4946.93 4844.31 2395.98 289.96 5971923.34 481012.39 MWD+IFR-AK-CAZ-SC 5948.32 43.82 6.38 5017.11 4914.49 2460.83 296.90 5971988.18 481019.50 MWD+IFR-AK-CAZ-SC 6043.30 43.10 5.78 5086.05 4983.43 2525.80 303.83 5972053.12 481026.59 MWD+IFR-AK-CAZ-SC 6137.93 43.23 6.46 5155.07 5052.45 2590.16 310.73 5972117.46 481033.65 MWD+IFR-AK-CAZ-SC 6232.24 44.14 6.95 5223.27 5120.65 2654.86 318.34 5972182.13 481041.43 MWD+IFR-AK-CAZ-SC 6326.23 43.22 6.92 5291.25 5188.63 2719.29 326.17 5972246.54 481049.43 MWD+IFR-AK-CAZ-SC 6419.52 42.60 6.14 5359.57 5256.95 2782.40 333.40 5972309.61 481056.82 MWD+IFR-AK-CAZ-SC 6513.93 42.14 6.66 5429.33 5326.71 2845.62 340.49 5972372.82 481064.07 MWD+IFR-AK-CAZ-SC 6605.48 40.92 6.39 5497.86 5395.24 2905.93 347.39 5972433.10 481071.12 MWD+IFR-AK-CAZ-SC . . Halliburton Global Survey 6700.37 40.05 6.18 5570.03 5467.41 2967.16 354.13 5972494.31 481078.02 MWD+IFR-AK-CAZ-SC 6794.44 38.85 6.11 5642.67 5540.05 3026.59 360.53 5972553.71 481084.57 MWD+IFR-AK-CAZ-SC 6888.27 37.99 6.02 5716.18 5613.56 3084.57 366.69 5972611.67 481090.88 MWD+IFR-AK-CAZ-SC 6982.87 38.77 7.14 5790.34 5687.72 3142.92 373.43 5972669.99 481097.77 MWD+IFR-AK-CAZ-SC 7077.84 37.57 7.24 5865.00 5762.38 3201.15 380.77 5972728.20 481105.26 MWD+IFR-AK-CAZ-SC 7172.55 36.79 7.64 5940.46 5837.84 3257.90 388.18 5972784.93 481112.82 MWD+IFR-AK-CAZ-SC 7267.26 36.06 7.25 6016.67 5914.05 3313.66 395.47 5972840.66 481120.25 MWD+IFR-AK-CAZ-SC 7330.84 35.71 6.33 6068.18 5965.56 3350.67 399.88 5972877.65 481124.75 MWD+IFR-AK-CAZ-SC , 7400.00 35.71 6.33 6124.33 . 6021.71 3390.79 404.33 5972917.76 481129.30 PROJECTED to TD · . ~ KERR-flWE 1.fOIJr000TltJII Operations Summary Report Ataruq #2 APD No.: 205-039 3/18/05 3/31/05 4/01/05 4/01/05 4/02/05 4/03/05 4/04/05 4/05/05 4/06/05 4/07/05 78' MD / TVD Below Pad Level VECO set 13-3/8" conductor and cellar at 78' below pad level. 110' MD / TVD Moved in Nabors 27E from Kigun #1. Commenced rigging up. 110' MD / TVD Moved remaining rig modules and camp. Continued rigging up Nabors 27E. 78' MD / TVD Below Pad Level Continued rigging up Nabors 27E. 110' MD / TVD Continued rigging up Nabors 27E. 110' MD / TVD Continued R/U Nabors 27E. P/U DP, etc. Diverter test witnessed by Jeff Jones. 2,350' MD / 2,333' TVD Drilled to 12-1/4" surface hole to the KOP at 1750' MD. Continued drilling and built inclination as planned to 2350' MD /2333' TVD. Mud loggers saw no hydrate gas in this interval: only nonnal background gas. MW = 9.6 ppg. 3,350' MD / 3,098 TVD Drilled to 12-1/4" surface hole to casing point at 3350' MD / 3098' TVD. CBU x 2. Wiper trip to the B/Pennafrost. RIH. Circulate & condition the hole. 3,350' MD / 3,098 TVD POOH. R/U and Ran 9-5/8" casing to 3319' MD / 3051' TVD. Cemented with 385 bbl oflead & 60 bbl of tail cement. Displaced with 10.8 ppg OBM. Hole packed off during displacement. Bumped the plug. CIP at 05:30, 4/7/05. RID Halliburton. 3,350' MD / 3,098 TVD LID landing joint. Set & tested packoff. N/D Diverter system. NIU BOPE. Tested BOPE: witnessed by AOGCC. ADEC conducted a "Spill Drill" with emphasis on a) development of a site-safety plan and b) a "clean up" plan. No deployment was required. Well control was not part of the drill. Note: due to OBM inventory shortages, we plan to drill the 8-1/2" hole with KCLlPolymer mud instead of OBM. 3900 C Street Suite 702, Rm 744 Anchorage, AK 99503 (907)-339-6370 · . ~ KfIIII.IfCt&,...,.,. 4/08/05 4/09/05 4/1 0/05 4/11/05 4/12/05 4/13/05 4/14/05 4/15/05 4/16/05 4/17/05 3,373' MD / 3.1 16 TVD Finished testing BOPE. PID 8-1/2" bit & BHA. "Single in" the hole. Test casing to 2500 psi. Displace OBM with KCL/Polymer mud. Drilled out the shoe track. Drilled to 3373' MD / 3116' TVD. CBU. LOT: invalid results. 5,540' MD / 4,716 TVD Drilled to 3393' MD. CBU. Perfonned LOT: 13.7 ppg EMW. Drilled ahead with 8-1/2" bit and BHA to 5540' MD / 4716' TVD. MW = 10.1 ppg. 6,773' MD / 5,626 TVD Drilled ahead with 8-1/2" bit and BHA to 6773' MD / 5626' TVD. Increased the MW = 11.2 ppg while drilling. 7,400' MD / 6.124' TVD Drilled ahead with 8-1/2" bit and BHA to 7400' MD / 6124' TVD. Increased the MW = 11.3 ppg while drilling. CBU x 2. Start wiper trip. 7,400' MD / 6.124' TVD Pumped and backreamed out to the shoe. CBU from the shoe. POOH & LID CNL & DEN LWD's. RIH to TD. CBU x 4. POOH for E-Line logs. 7,400' MD / 6.124' TVD R!U E-Line. Ran open hole logs: Run #1 / FMI-DST-NGP, Run #2/ HRLA- CMR. P/U MDT tools on 5" DP. 7,400' MD / 6.124' TVD RIH with MDT tools on DP. Took pressures and attempted samples as directed. POOH with MDT tools. 7,400' MD / 6.124' TVD POOH with TLC / MDT tools. RIH with SWC tools: two runs. R/S E-Line. 7,400' MD / 6,124' TVD Tested BOPE. P/U 3-1/2" cementing stinger. RIH. CBU. Spot abandonment plug #1: 471 sx (97.3 bbl) 7400' to 6300'. POOH to 6300'. CBU with cement returns on bottoms up. Spot abandonment plug #2: 471 sx (97.3 bbl) 6300' to 5200'. POOH to 5200'. CBU with cement returns on bottoms up. POOH to the shoe. WOC 7,400' MD / 6.124' TVD / PBTD = 3100' MD Picked up Drill pipe and WOC. RIH and tagged cement plug # 2. Pulled up hole and spotted balanced cement plug from 3600' to 3100' for kicking off as Ataruq # .- 2A. FINAL REPORT. SEE Ataruq#2A for continued operations details. 3900 C Street Suite 702, Rm 744 Anchorage, AK 99503 (907)-339-6370 April 8tt, 2005 . Weekly Operations Report No.2 Ataruq #2 APD No.: 205-039 4/01/05 4/02/05 4/03/05 4/04/05 4/05/05 4/06/05 4/07/05 78' MD / TVD Below Pad Level Continued rigging up Nabors 27E. 110' MD / TVD Continued rigging up Nabors 27E. 110' MD /TVD Continued R/U Nabors 27E. P/U DP, etc. Diverter test witnessed by Jeff Jones. 2,350' MD / 2,333' TVD Drilled to 12-114" surface hole to the KOP at 1750' MD. Continued drilling and built inclination as planned to 2350' MD / 2333' TVD. Mud loggers saw no hydrate gas in this interval: only nonnal background gas. MW = 9.6 ppg. 3,350' MD / 3,098 TVD Drilled to 12-114" surface hole to casing point at 3350' MD / 3098' TVD. CBU x 2. Wiper trip to the B/Pennaftost. Rlli. Circulate & condition the hole. 3,350' MD / 3,098 TVD POOH. R/U and Ran 9-5/8" casing to 3319' MD / 3051' TVD. Cemented with 385 bbl oflead & 60 bbl oftail cement. Displaced with 10.8 ppg OBM. Hole packed off during displacement. Bumped the plug. CIP at 05 :30, 4/7/05. RID Halliburton. 3,350' MD / 3,098 TVD LID landing joint. Set & tested packoff. N/D Diverter system. N/U BOPE. Tested BOPE: witnessed by AOGCC. ADEC conducted a "Spill Drill" with emphasis on a) development of a site-safety plan and b) a "clean up" plan. No deployment was required. Well control was not part of the drill. Note: due to OBM inventory shortages, we plan to drill the 8-1/2" hole with KCL/Polymer mud instead of OBM. 3900 C Street Suite 702, Rm 744 Anchorage, AK 99503 (907)-339-6370 April 15th, 2005 . Weekly Operations Report No.3 Ataruq #2 APD No.: 205-039 4/08/05 4/09/05 4/1 0/05 4/11/05 4/12/05 4/13/05 4/14/05 3,373' MD / 3,1 16 TVD Finished testing BOPE. PIU 8-1/2" bit & BHA. "Single in" the hole. Test casing to 2500 psi. Displace OBM with KCL/Polymer mud. Drilled out the shoe track. Drilled to 3373' MD / 3116' TVD. CBD. LOT: invalid results. 5540' MD /4,716 TVD Drilled to 3393' MD. CBU. Performed LOT: 13.7 ppg EMW. Drilled ahead with 8-1/2" bit and BHA to 5540' MD / 4716' TVD. MW = 10.1 ppg. 6,773' MD / 5,626 TVD Drilled ahead with 8-1/2" bit and BHA to 6773' MD / 5626' TVD. Increased the MW = 11.2 ppg while drilling. 7,400' MD / 6,124' TVD Drilled ahead with 8-1/2" bit and BHA to 7400' MD / 6124' TVD. Increased the MW = 11.3 ppg while drilling. CBU x 2. Start wiper trip. 7,400' MD / 6,124' TVD Pumped and backreamed out to the shoe. CBU from the shoe. POOH & LID CNL & DEN L WD's. RIH to TD. CBU x 4. POOH for E-Line logs. 7,400' MD / 6,124' TVD R!U E-Line. Ran open hole logs: Run #1/ FMI-DST-NGP, Run #2 / HRLA- CMR. PIU MDT tools on 5" DP. 7,400' MD / 6,124' TVD Rlli with MDT tools on DP. Took pressures and attempted samples as directed. POOH with MDT tools. 3900 C Street Suite 702, Rm 744 Anchorage, AK 99503 (907)-339-6370 .. Apri12th,2005 Weekly Operations Report No.4 Ataruq #2 APD No.: 205-039 4/15/05 7,400' MD / 6,124' TVD POOH with TLC / MDT tools. RIH with SWC tools: two runs. R/S E-Line. 4/16/05 7,400' MD / 6.124' TVD Tested BOPE. P/U 3-1/2" cementing stinger. RIH. CBU. Spot abandonment plug #1: 471 sx (97.3 bbl) 7400' to 6300'. POOH to 6300'. CBU with cement returns on bottoms up. Spot abandonment plug #2: 471 sx (97.3 bbl) 6300' to 5200'. POOH to 5200'. CBU with cement returns on bottoms up. POOH to the shoe. WOC. 4/17/05 7,400' MD / 6,124' TVD Tagged TOC plug #2 at 5195' MD. Spot balanced cement plug 3600' to 3100' MD. Pulled 6 stands. CBD. POOH. P & A for sidetrack. Final Report. 3900 C Street Suite 702, Rm 744 Anchorage, AK 99503 (907)-339-6370 e e MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg,. '-Pen .5"7J/'~ P. I. Supervisor I\(ll ~ L DATE: April 17, 2005 THRU: FROM: Lou Grimaldi, Petroleum Inspector SUBJECT: Abandonment Plug Tag Kerr McGee, Ataruq #2 PTD #205-039 Exploratory-Confidential Sunday. April 17. 2005; I witnessed the verification of abandonment plug by drillpipe tag on Kerr McGee's exploratory well "Ataruq #2". I observed the running of 5" drillpipe with a muleshoe to 5195' MD as verified by pipe tally. Firm cement was encountered and 20K was set down while circulating at 3 bbl's/min. The drillpipe when picked up came up smoothly with almost no indication of sticking. SUMMARY: I witnessed a good tag of the bottomhole plug on Kerr Mcgee's exploratory well "Ataruq #2". Attachments: None NON-CONFIDENTIAL Plug and Abandonment Ataruq-2 04-17-05 LG.doc Ataruq #2 / P & A 10-403 . . ~-~$1 Subject: Ataruq #2 / P & A 10-403 From: "Coyner, Skip" <Skip.Coyner@asrcenergy.com> Date: Thu, 14 Apr 200508:54:10 -0800 To: "tom_ maunder@admin.state.ak.us" <tom _maunder@admin.state.ak.us> .-:p? '"3ò'5 -0 <ti ~ . Please disregard the 10-403 that I dropped off yesterday afternoon. We are now going to sidetrack from the 9-5/8" shoe - no whipstock. So, I'll re-do the 10-403 package & bring it over later today. Ataruq 2A 10-401 will be a rush job & I'll try like heck to have it over there Friday am. . Sidetrack Ataruq #2 from the 9-5/8" shoe . Tarn target located in section 6 TllN R8E SR.fp Coyner 907-339-62690fc 907-748-3689 cell 1 of 1 4/14/2005 9:28 AM uJ ~> PLACER 2 ,(I PLACER N \ C~ ~ T12N, R7Ei, UM T12N, R8E, UM T11N, R7E, UM T11 N, RBE, U/VI OATA.I?IJO 2 (J "'TA.f?U(~ 24 'II I Ij t.ll.,IUlIll ) Ataruq Exploration Sidetrack Determ ination Map", Confidential well BHL's shown in red SFD 4/13/2005 \-,',"'07 'i .. \, jIJj\~,; Y.,;IJ.j '........ . . 1,:1.", ,)(;<'U' '.JI'---1 '.:'i ' >: ~. I.' Feel I 5,000 10,000 ~ I I'. 11'1HII" I o " ::1.1\ I j \ ") 1'.1;;. l'.1;;11 !nl;VI;;I;; ~ fiLd! ug CXjJ1UldUUU rlUJI;;l;L . . Subject: Re: Kerr McGee's Atarug Exploration Project From: Thomas Maunder <tom_maunder@admin.state.ak.us> Date: Thu, 14 Apr 2005 12:16:51 -0800 To: "Miner, Lydia" <Lydia_Miner@dec.state.ak.us> CC: "Moore, Ted" <ted_Moore@dec.state.ak.us>, Steve Davies <steve_davies@admin.state.ak.us> Probably gets to splitting hairs. The objective hydrocarbon formation is about 3000' vertical feet below the presently set casing shoe. There is a significant length of "non-hydrocarbon" bearing formations that must be drilled before maybe 80' to 100' of payzone will be encountered. Steve and I are wrapping up our work with regard to the RPS change and would hope to have it to you later today. Tom Miner, Lydia wrote: The condition of approval in the plan states that "all drilling operations into hydrocarbon bearing formations for the Kerr-McGee Two Bits Prospect must be completed by April 15th of each drilling season that the plan approval is in effect." I guess we can have a discussion about what "drilling operations" actually entail at some point in the future, but until then, if KM is drilling in a hydrocarbon formation, not just penetrating, but drilling, after April 15, they are in violation of their c-plan. If KM is conducting operations to abandon the well, and those operations go past April 15, that is OK. Lydia. -----Original Message----- From: Thomas Maunder [mailto:tom maunder@admin.state.ak.us] Sent: Thursday, April 14, 2005 8:11 AM To: Moore, Ted Cc: Miner, Lydia; Steve Davies Subject: Re: Kerr McGee's Atarug Exploration Project Thanks, Steve and 1 are working on the response to your request. Ifthe extension is not approved, KM will still need to conduct operations to abandon the Ataruq 2 that will likely take them beyond 2400 April15. Tom Moore, Ted wrote: Based on conversation with Lydia the lack of an approved plan will result in the total halting of operations. -----Original Message----- From: Thomas Maunder [mailto:tom maunder@admin.state.ak.us] Sent: Thursday, Apri/14, 2005 7:44 AM To: Moore, Ted Cc: Miner, Lydia; Steve Davies Subject: Re: Kerr McGee's Atarug Exploration Project Ted, Is the "prohibition" to penetrating a hydrocarbon bearing interval or a total halting of operations?? They will be plugging the initial penetration (1 have their proposal) and then preparing to exit the 9-5/8" casing at about 1900'. They will set a "short" liner so the 2A is configured similar to the initial well before they even begin to drill the hole section that will be used to "look" for the Kuparuk sands. I would estimate that they will not be ready to start drilling that final hole section until about Tuesday or so. Thanks, Tom Maunder Iof2 4/14/20052:55 PM Ke: 1\..err lYICLJeeS f\rarug txplOraIlOn t'rOject . . Moore, Ted wrote: They'll need an approval from us before April 15th in order to keep on drilling otherwise they'll have to stop. -----Original Message----- From: Thomas Maunder [mailto:tam maunder@admín.state.ak.us] Sent: Tuesday, April 12, 20057:41 AM To: Moore, Ted Subject: Re: Kerr McGee's Atarug Exploration Project Ted, What is the timing on this matter?? Tom Moore, Ted wrote: Tom, As you are aware Kerr McGee is amending their plan to reflect a lower response planning standard volume (rps) for their Atarug exploration project in an effort to get approval to drill beyond April 15, 2005. In the scenario sent to us the new rps is 2,000 bbls/day with the well being capped in 3 days with drilling mud with a total rps of 6,000 bbls. Before we can approve such an amendment we will need written concurrence from you with the Kerr McGee submittal. Thanx Ted 20f2 4/14/20052:55 PM . . c:2os -037 FRANK H. MURKOWSKI, GOVERNOR AI,A~HA. OIL AND GAS CONSERVATION COMMISSION 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Todd Durkee Drilling Manager Kerr McGee Oil & Gas Corporation 3900 C Street, Suite 744 Anchorage, Alaska 99503 Re: Ataruq #2 Sundry Number: 305-092 Dear Mr. Durkee: 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. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a hot" ay or weekend. A person may not appeal a Commission decision to Superior C less rehearing has been requested. DATED this/~y of April, 2005 Encl. '~.... . ~~ KERa.MCGEE CORPORATION . April 14th, 2005 RECEIVED APR 1 4 2005 Alaska Oil & Gas Cons. Commission Anchorage Commissioner Alaska Oil and Gas Conservation Commission 333 W 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Ataruq #2 APD# 205-039 Kerr McGee Oil & Gas Corporation Revised Application for Sundry Approval (10-403) Plug and Abandon (prior to sidetrack) Attached for your review and expedited approval is our Revised Application for Sundry Approval to plug and abandon the open hole portion of the Ataruq #2 exploration well located approximately four (4) miles north-northwest from KRU's 2M Pad. This Revised original application is submitted along with one (1) copy. The package includes: L WD log of the open hole section, detailed plugging procedure, directional surveys and a wellbore diagram. It is our intention, if allowed a time extension by ADEC, to sidetrack this well through the 9-5/8" casing shoe. If the drilling season is not extended, the well will be abandoned completely or suspended in accordance with AOGCC regulations and the applicable C-Plan. If you have any questions or concerns about the APD or the drilling plan, please call me at 339-6269 and I will do my best to address your questions or concerns. Sincerely, sd;iterr- ASRC Energy Services Project Drilling Supt. 3900 C Street Suite 702, Rm 744 Anchorage, AK 99503 OFJ l (907)-339-6370 STATE OF ALASKA A~ Oil AND GAS CONSERVATION COM_ION AP~CATION FOR SUNDRY APP VAL 20 MC 25.280 -' ø /' J 6f/- 4-- J4-- D~ ~// I . r. \.. 9Ys þ- \,,~\ 1. Type of Request: Abandon lj Suspend U Operational shutdown U Perforate U Waiver U Other ~ Alter casing 0 Repair well 0 Plug Perforations 0 Stimulate 0 Time Extension 0 Plug back for Change approved program 0 Pull Tubing 0 Perforate New Pool 0 Re-enter Suspended Well 0 sidetrack 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Kerr McGee Oil & Gas Corporation Development 0 Exploratory 0 205-039 3. Address: Stratigraphic 0 Service 0 6. API Number:(ø ~/03-~o~ø8-n 3900 C Street, Suite 744, Anchorage, AK 99503 50~0 ~ 7. KB Elevation (ft): 9. Well Name and Number: 105 ft Ataruq #2 . 8. Property Designation: 10. Field/Pools(s): ADL: 390502 Exploration 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): ¡EffeCtiVe Depth MD (ft): Effective Depth TVD (ft): IPlugs (measured): Junk (measured): 7400' 6124' N/A I N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 80 ft 13-3/8" 113ft 113ft Surface 3286 ft 9-518" 3319 ft 3051 ft 5750 psi 3090 psi Intermediate N/A Production N/A Liner N/A Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: ¡TUbing Grade: ITubing MD (ft): N/A N/A N/A N/A N/A Packers and SSSV Type: Packers and SSSV MD (ft): N/A N/A 12. Attachments: Description Summary of Proposal U 13. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch 0 Exploratory 0 Development 0 Service 0 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 15 April, 2005 Oil 0 Gas 0 Plugged 0 Abandoned 0 16. Verbal Approval: Date: WAG 0 GINJ 0 WINJ 0 WDSPL 0 Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Skip Coyner: 907-339-6269 Printed Name Todd ~~kee ~ Title Drilling Manager ~.'---'" I Signature - ! JÅJ( "'1 ,( ) t Phone 907-339-6370 Date 14 April, 2005 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness ¡sundry Number: 305 -09J- Plug Integrity ~ BOP Test 0 Mechanical Integrity Test 0 Location Clearance 0 RECEIVED Other: <.ct\.~~c:...\-' -x.'--',";>~'ê.c..\-c,~~..\.v.~ \t-..~ ~ ~ \<,,;)~ 'ò.. ~ APR 1 4 2005 Alaska Oil & Gas Cons. Gonm$sjQI1 :::::~~~ Anchorage APPROVED BY 4¥~š COMMISSIONER THE COMMISSION Date: VV' ..... \.. .--' ~~ l-1( t1 f i~S- - <; ç Form 10-403 Revised 11/2004 o f·c( 1-\ L RBiì11S Submit in Duplicate . . Ataruq #2 Abandonment Program I AFE No.: 140146-01 1 Plug and Abandon for Sidetrack [2A] I AOGCC Permit No.: 205-039 1 Drilling Rig: Nabors 27E Surface Location: 477' FNL & 1334.6' FEL of Section 8, T11 N, R8E UM X = 480,716' Y = 5,969,528' Bottom Hole Location: 2366' FNL & 1435' FEL of Section 5, T11 N, R8E UM X = 484,107' Y = 6,457,129' I Estimated P & A Date: 14/15/05 1 I Operating Rig days: 11.5 I Pad Elev: 172 ft 1 DF: 1105 ft I I TMD: 17,400' 1 I TVD: 16,124' 1 It is planned to plug the Ataruq #2 back into the 9-5/8" casing shoe in accordance with AOGCC regulations. We will test the 9-5/8" casing and the shoe plug before sidetracking the well from the 9-5/8" casing shoe. Casing - Actual: Hole Csgl WtlFt Grade Conn Length Top Bottom Size Tbg O.D. MD I TVD MD I TVD 24" 13-5/8" 68# L-80 BTC 80' 33' 113' / 113' 12-1/4" 9-5/8" 40# L-80 BTC 3,286' 33' 3,319' / 3,051' S Coyner 4/14/2005 . . Formation Markers: Formation Tops MD rvD Pore Pressure EMW (ft) (ft) (psi) (Ib/gal) B/Permafrost 1,453' 1,453' T/Colville 3,199' 3,002' 1,335 8.55 T/Middle Brookian 5,404' 4,613' 1,335 8.55 T/Tarn 5,800' 4,907' 2,169 8.55 T/Moraine 6,565' 5,466' 2,335 8.55 T/HRZ 6,748' 5,606' 2,914 10.00 T/Kuparuk C 7,195' 5,957' 3,450 11.15 LCU 7,205' 5,965' 3,470 11.15 T/Kuparuk A 7,205' 5,965' 3,470 11.15 Proposed TD 7,538' 6,203' 3,596 11.15 ABANDONMENT PROCEDURE Plugging Operations: 1. After geologic evaluations are complete, P/U .:t1200' of 3-1/2" DP and cement sub. RIH to TMD. Circulate bottoms up while cooling and thinning the mud down. RIU cement unit and test lines to 3000 psi. 2. The P & A procedure must be approved by AOGCC before plugging operations commence. Spot two (2) 1100 ft, bottom-founded, balanced cement plugs starting at TO. Plug #2 will be placed directly on top of plug #1 : Plug #1 7,400' - 6,300' Plug #2 6,300' - 5,200' 471 sx, 96.5 bbl, 15.8 ppg, Premium "G" Cement, with 25% excess (or caliper + 1 0%) ../' Spot balanced Plua #1: 7400' to 6300' MD. Pull 13 stands and CBU x 2. Note any cement returns. Check the bottojPs up pH. RIH (if necessary) to TOC. Prepare to pump plug #2. 3. Spot balanced Plua #2: 6300' to 5200' MD. Pull 15 stands and CBU x 2. Do not reverse circulate. Note any cement returns. Check the bottoms up pH. Pull up into the shoe and WOC. RIH and tag plug #~ as per AOGCC reql;llations. POOH to 3620' MD. 4. Spot balanced Plua #3: 204 sx (41.7 bbl) of Premium cement + 2% CaCI2. Pull 1 0 stands and reverse circulate bottoms up x 2. Wash down to .±3000' MD and note the cement returns. CBU x 2. POOH. Plug #3: 3620' - 3120' MD 204 sx, 41.7 bbl of Premium cement + 2% CaCI2: mixed at 15.8 ppg & 1.15 cf/sk ---... 5. Test BOPE. Pressure test the casing and plug #3 to 2500 psi after WOC. 6. Prepare to drill the Ataruq 2A sidetrack. S Coyner 2 4/14/2005 , _ Surf 1000' 1452' _ 2000' _ 3000' c > ¡.... _ 4000' Rig RKB = 105 ft Pad Elev = 72 ft 13..3/8",68#, l-80 Conductor Ataruqi#2 (P & A) 12-1/4" Hole PluCls #1 & #2: 1100' MD, 96.5 bbl, 471 sx of Premium Cement. ~ Tag Plug #2 as directed Ph..lq #3,3120' to 3620', caliper (8.9") +15% Excess 41.7 bbl, 204 sx Premium + CaClz , , , , , , TOC ::: 5200' MD 9-5/8", 40#, l-80, BTC 3319' MD 13051' TVD , , , , , , - - - - - - - -M. Brookian at 5404' MD 1 4613' TVD - - -- -. -. -. -.-.-.-. -. U. Tam at 5800' MD 14907' TVD-· -. -.~ .-.-. - .-.- .-.- _ 5000' --- --- --L, Tam at 6210' MD 15207' TVD------- ------- 8-1/2" Hole -.;.:.;,-emfóy---Kuparuk C at 7195' MD 15957' TVD·-------------- ----- _ 1000' 1400' MD 16124' TVD s. Coyner: 4/14/2005 Size 9.625 in To 3,319.00 ft Run No. 2 3 D.. o 0:: en ...0 (1)0:: D.C) en Plot Plot Date RUfINo. Size From To Sea L.evel Drill Floor Unit No. 117 Job No. GL WD 0.00 It 102.62 ft ft ~ ~ '0 1D ü: .c 't: :i ~ II> 5 ~f5 ~ i ... r::t' .. ii 3 <It 5 ~ ~ i ~ ~ !!! I '" æ (5 Š ...J Latitude API Number 71)0 19' 40.48" North 1500 9' 23.01" West 50-103-2050iH)O Elev. Other Services KB D.. )( W en D.. en w en N d ,g (I) ¡¡: E .c o D.. ::E w en D.. C W en Well Nabors #2 o o @ en D.. Z I- c :e w )( u.. en o o .... M ('ill o m en .. 3900 I :t 3500 3600 3700 3800 ~ 4000 4100 .. r, 4200 ,..~ 4300 4400 4500 5000 4600 4700 4800 4900 5500 5600 5100 ~ 5200 r < , .' ~. 5300 5400 5700 5800 5900 6000 6100 6200 6300 6400 6500 6600 6700 I 7100 7200 6800 6900 7000 SGRC SROP 7300 7400 MD SFXE SEDP SEMP SESP 0.2 2000 SEXP gram DIRECTIONAL SURVEY REPORT Kerr McGee Ataruq #2 Exploration North Slope Borough Alaska USA 50-103-20508-00 960.010 1052.850 1148.980 1242.780 1336.850 1.250 1.310 1.590 1.790 1.540 227.980 230.940 226.510 225.500 215.210 959.925 1052.742 1148.841 1242.600 1336.630 9.119 S 10.465 S 12.076 S 13.998 S 16.061 S 8.079 W 9.655 W 11.476W 13.465 W 15.242 W . -10.029 -11.557 -13.376 -15.525 -17.787 0.315 0.096 0.314 0.216 0.413 1906.460 1999.860 2094.430 2186.870 2281.990 7.530 11.390 14.300 17.370 20.980 7.490 7.850 10.370 12.540 13.420 1905.599 1997.712 2089.906 2178.828 2268.656 17.670 S 2.461 S 18.283 N 42.988 N 73.422 N 27.236 W 25.178 W 21.799W 16.747W 9.710 W -20.836 -5.489 15.511 40.646 71.708 6.297 4.133 3.133 3.382 3.807 . 2849.430 2944.670 3036.210 3132.070 3227.170 45.630 45.330 45.150 44.160 42.340 10.990 9.470 7.770 7.620 6.670 2738.252 2805.032 2869.491 2937.681 3006.947 375.213 N 442.036 N 506.296 N 573.062 N 637.712 N 60.362 E 72.423 E 82.166 E 91.188E 99.302 E 379.760 447.552 512.518 579.886 645.042 3.698 1.181 1.333 1.039 2.032 3778.290 3871.660 3961.620 4056.740 4152.700 41.320 42.620 41.730 41.140 42.480 5.590 6.170 5.820 6.150 6.670 3418.888 3488.307 3554.976 3626.288 3697.811 1002.127 N 1064.236 N 1124.304 N 1186.908 N 1250.479 N 134.098 E 140.499 E 146.809 E 153.371 E 160.517 E 1010.989 1073.417 1133.807 1196.745 1260.713 0.504 1 .453 1.023 0.661 1.442 4721.290 4814.260 4909.240 5002.240 5095.180 41.770 42.840 42.220 43.430 42.640 6.050 6.410 5.860 6.760 6.050 4113.075 4181.832 4251.825 4320.034 4387.967 1635.875 N 1698.080 N 1761.915 N 1824.747 N 1887.776 N 208.332 E 215.124 E 221.988 E 228.941 E 236.020 E 1649.063 1711.633 1775.830 1839.042 1902.464 1.116 1.180 0.761 1 .458 0.997 . 5662.330 5757.450 5852.500 5948.320 6043.300 42.140 41.330 41.990 43.820 43.100 5.910 5.560 5.830 6.380 5.780 4804.931 4875.912 4946.924 5017.107 5086.049 2269.959 N 2332.961 N 2395.829 N 2460.688 N 2525.651 N 277.244 E 283.573 E 289.844 E 296.786 E 303.708 E 2286.827 2350.132 2413.297 2478.520 2543.843 0.920 0.886 0.720 1.949 0.874 6605.480 6700.370 6794.440 6888.270 6982.870 40.920 40.050 38.850 37.990 38.770 6.390 6.180 6.110 6.020 7.140 5497.857 5570.027 5642.665 5716.178 5790.336 2905.781 N 2967.018 N 3026.446 N 3084.427 N 3142.771 N 347.271 E 354.017 E 360.415 E 366.576 E 373.311 E 2926.451 2988.054 3047.819 3106.120 3164.851 1.347 0.928 1.277 0.918 1.105 . ~. r\.Ldl u4 ~" ~UdU~t: . . Subject: RE: Ataruq RPS change From: "Durkee, Todd" <TDURKEE@KMG.com> Date: 'Wed, 13 Apr 2005 13:25:51 -0500 To: Thomas Maunder <tom_maunder@admin.state.ak.us> cc: Bob Britch <bbritch@alaska.net>, "Ext - Coyner, Skip (ASRC)" <Skip.Coyner@asrcenergy.com> Tom, The basis of the 2000 BOPD scenario is based on production data available on the AOGCC website. Below is well test data from wells along the fringe of the field and closest to our Ataruq prospect for your review. We would expect the reservoir character to be analogous to our prospect. Based on the non-stimulated / flowing test data available, we believe 2000 BOPD event is reasonable. Well Date Comments 2A-22 June 1995 Non-stimulated - Flowing 2A-22 July 31, 1995 1634 Stimulated - Gas lift 2A-22 Feb 2005 Stimulated - Gas Lift 2A-25 July 07, 1995 Stimulated - Gas lift 2A-25 Feb 2005 Stimulated - Gas lift 187 2T-22 Sept 29, 1995 Stimulated - Flowing 2T-22 Feb 2005 Stimulated - Gas Lift 1773 Regards, Todd Durkee BFPD BOPD MCFPD BWPD 790 461 329 1586 48 1538 965 187 778 175 12 180 4216 708 3509 1759 14 2531 341 281 60 348 175 555 1244 ---------------------------------------------------------- KERR-McGEE OIL & GAS CORPORATION Drilling & Completions Operations Manager 16666 Northchase Drive, Houston, TX 77060 Office: 281-673-6423 eFax: 281-673-4423 Cell: 281-639-3463 -----Original Message----- From: Thomas Maunder [mailto: tom maunder@admin. st~!:_~-=-~~:_1:l~] Sent: Tuesday, April 12, 2005 10:44 AM To: Durkee, Todd; Ext - Coyner, Skip (ASRC) Cc: Bob Britch Subject: Ataruq RPS change All, I did get a message from Ted Moore at DEC on this matter and I have received the scenario from Bob. AOGCC will also need documents similar to what was sent directly to us on the "design basis/analogue" for Nik #3. I am aware of some of the flow analogues from discussions with Todd, however we will need the case in writing. As I understand, the "stop drilling date" is presently April 24 correct?? Tom Maunder, PE AOGCC 1 of 1 4/14/20052:54 PM Additional data . . Subject: Adçitional data From: "Durkee, Todd" <TDURKEE@KMG.com> Date: Wed, 13 Apr 2005 13:42:45 -0500 To: Thomas Maunder <tom_maunder@admin.state.ak.us> CC: Bob Britch <bbritch@alaska.net>, "Ext - Coyner, Skip (ASRC)" <Skip.Coyner@asrcenergy.com> «KRU 2A-22 well file.pdf» «KRU 2A-25 well file.pdf» «KRU 2T-22 well file.pdf» «KRU 2T-38A well file.pdf» «KRU 2A-22 production data.xls» «KRU 2A-25 production data.xls» «KRU 2T-22 production data.xls» «KRU 2T-38A production data.xls» Thanks for your help. Todd Durkee KERR-McGEE OIL & GAS CORPORA TION Drilling & Completions Operations Manager 16666 Northchase Drive, Houston, TX 77060 Office: 281-673-6423 eFax: 281-673-4423 Cell: 281-639-3463 Important Notice! If you are not the intended recipient of this e-mail message, any use, distribution or copying of the message is prohibited. Please let me know immediately by return e-mail if you have received this message by mistake, then delete the e-mail message. Thank you. 2A-22 well Content-Description: KRU 2A-22 well file.pdf Content-Type: application/octet-stream Content-Encoding: base64 Content-Description: KRU 2A-25 well file.pdf Content-Type: application/octet-stream Content-Encoding: base64 2T -22 well Content-Description: KRU 2T-22 well file.pdf Content-Type: application/octet-stream Content-Encoding: base64 2T -38A well Content-Description: KRU 2T-38A well file.pdf Content-Type: application/octet-stream Content-Encoding: base64 10f2 4/14/2005 2:54 PM Additional data . . Content-Description: KRU 2A-22 production data. xIs KRU 2A-22 production data.xIs Content-Type: applicationlvnd.ms-exceI Content-Encoding: base64 Content-Description: KRU 2A-25 production data. xIs KRU 2A-25 production data.xls Content-Type: applicationlvnd.ms-exceI Content-Encoding: base64 Content-Description: KRU 2T -22 production data.xIs KRU 2T -22 production Content-Type: applicationlvnd.ms-excel Content-Encoding: base64 Content-Description: KRU 2T -38A production data.xIs 2T -38A production Content-Type: applicationlvnd.ms-exceI Content-Encoding: base64 20f2 4/14/20052:54 PM ~, . t~ KERR-MCBEE C . April 13th, 2005 Commissioner Alaska Oil and Gas Conservation Commission 333 W 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Ataruq #2 APD# 205-039 Kerr McGee Oil & Gas Corporation Application for Sundry Approval (10-403) Plug and Abandon (prior to sidetrack) ..,v »./,/,'> RECEWÉD APR 1~' 2005 A/aska ai/ & G.lc A / on,. Commission /lIchørage S~~~~ ~$'- 9.) / ¡ i I Attached for your review and expedited approval is 0 Application for Sundry Approval to plug and abandon the open hole portion of the At q #2 exploration well located approximately four (4) miles north-northwest from KRU's fM Pad. / This original application is submitted along witI:0"ne (1) copy. The package includes: L WD log of the open hole section, detailed plugg~ procedure, directional surveys and a 7 wellbore diagram. / / It is our intention, if allowed a time /,ension by ADEC, to sidetrack this well. If the drilling season is not extended, the weB/ill be abandoned completely in accordance witb AOGCC regulations and the applicable;é'-Plan. If you have any questions oy{oncerns about the APD or the drilling plan, please call / me at 339-6269 and I will do m~est to address your questions or concerns. // Sincerely, ~ iilyne / ASRC Energy Services ¡' Project Drillirlg Supt. / / ... ORIGlr~AL 391:')0 C Street Suite 702, Rm 744 Anchorage, AK. 99503 (907)-339-6370 1. Type of Request: STATE OF ALASKA A~ Oil AND GAS CONSERVATION COM.ION AP~CATION FOR SUNDRY APP VAL 20 MC 25.280 Operational shutdown Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: RECEIVED' APR 1 3 2005' Y4h'-\ Abandon ../ Alter casing 0 Change approved program 0 2. Operator Name: Kerr McGee Oil & Gas Corporation Suspend Repair well 0 Pull Tubing 0 3. Address: 3900 C Street, Suite 744, Anchorage, AK 99503 7. KB Elevation (ft): Development Stratigraphic o o Exploratory [] o 6. API Number: Service 9. Well Name and Number: 105 ft 8. Property Designation: 10. Field/Pools(s): ADL: 390502 11. Total Depth MD (ft): 7400' Total Depth TVD (ft): 6124' PRESENT WELL CONDITION SUMMARY Effective Depth MD (ft): Effective Depth TVD (ft): N/A Junk (measured): N/A Collapse Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): N/A Packers and SSSV Type: Length 80 ft 3286 ft N/A N/A N/A Perforation Depth TVD (ft): N/A Size MD 13-3/8" 113ft 9-5/8" 3319 ft Burst 5750 psi 3090 psi N/A N~ N~ ackers and SSSV MD (ft): Tubing MD (ft): N/A N/A 12. Attachments: Description Summary of Proposal Detailed Operations Program [] BOP Sketch 0 14. Estimated Date for Commencing Operations: 16. Verbal Approval: Commission Representative: 17. I hereby certify that the foregoing is true and carre Printed Name To ke 13. Well Class after proposed work: Exploratory [] Development 0 Service 0 15. Well Status after proposed work: Oil 0 Gas 0 Plugged [] Abandoned [] WAG 0 GINJ 0 WINJ 0 WDSPL 0 Signature to the best of my knowledge. Contact Title Drilling Manager 907-339-6370 Date Skip Coyner: 907-339-6269 13 April, 2005 COMMISSION USE ONLY Conditions of approval: ion so that a representative may witness Sundry Number: 3c<:r-:-o87 Plug Integrity ")l.. Mechanical Integrity Test 0 Location Clearance 0 -"~~<è:<:"-\c)~-~ ~,~~">~ ~~~\ ~ 'f(\~~ 'ò.;}. Approved b . COMMISSIONER APPROVED BY THE COMMISSION Date: n'(,f~N' AL t\! 01 i· RBDMS BFL APR 1 8 ?nn~ Form 10-403 Revised 11/2004 Submit in Duplicate . . Ataruq #2 Abandonment Program AFE No.: 140146-01 1 Plug and Abandon for Sidetrack [2A] AOGCC Permit No.: 205-039 1 Drilling Rig: Nabors 27E Suñace Location: 477' FNL & 1334.6' FEL of Section 8, T11 N, R8E UM X = 480,716' Y = 5,969,528' Bottom Hole Location: 2366' FNL & 1435' FEL of Section 5, T11 N, R8E UM X = 484,107' Y = 6,457,129' Estimated P & A Date: 14/15/05 I Operating Rig days: 12 TMD:17,400' I ITVD: 16,124' 1 I Pad Elev: 172ft I DF: 1105 ft I It is planned to plug the Ataruq #2 back into the 9-5/8" casing shoe in accordance with AOGCC regulations. Then, we plan to set a 9-5/8" EZSV at ±1700' MD/TVD and sidetrack the well for Ataruq 2A. We will test the 9-5/8" casing and the shoe plug before milling the window for the sidetrack which is below the permafrost. Casing - Actual: Hole Csgl WtlFt Grade Conn Length Top Bottom Size Tbg O.D. MDI TVD MD ITVD 24" 13-5/8" 68# L-80 BTC 80' 33' 113' / 113' 12-1/4" 9-5/8" 40# L-80 BTC 3,286' 33' 3,319' / 3,051' S Coyner 4/13/2005 . . Formation Markers: Formation Tops MD rvD Pore Pressure EMW (ft) (ft) (psi) (Ib/gal) B/Permafrost 1,453' 1,453' T/Colville 3,199' 3,002' 1,335 8.55 T/Middle Brookian 5,404' 4,613' 1,335 8.55 T/Tarn 5,800' 4,907' 2,169 8.55 T/Moraine 6,565' 5,466' 2,335 8.55 T/HRZ 6,748' 5,606' 2,914 10.00 T/Kuparuk C 7,195' 5,957' 3,450 11.15 LCU 7,205' 5,965' 3,470 11.15 T/Kuparuk A 7,205' 5,965' 3,470 11.15 Proposed TD 7,538' 6,203' 3,596 11.15 ABANDONMENT PROCEDURE Plugging Operations: 1. After geologic evaluations are complete, P/U .!.1240' of 3-1.2" DP and cement sub. RIH to TMD. Circulate bottoms up while cooling and thinning the mud down. RIU cement unit and test lines to 3000 psi. 2. The P & A procedure must be approved by AOGCC before plugging operations commence. Spot two (2) 1100 ft, bottom-founded, balanced cement plugs starting at TD. Plug #2 will be placed directly on top of plug #1 : Plug #1 7,400' - 6,300' Plug #2 6,300' - 5,200' Open-Hole Pluqs: ./ 471 sx, 96.5 bbl, 15.8 ppg, Premium "G" Cement, with 25% excess (or caliper + 1 0%) Spotting Plug #1: 7400' to 6300' MD. Pull 13 stands and CBU x 2. Note any cement returns. Check the bottoms up pH. RIH (if necessary) to TOC. Prepare to pump plug #2. 3. Spot Plug #2: 6300' to 5200' MD. Pull 15 stands and CBU x 2. Do not reverse circulate. Note any cement returns. Check the bottoms up pH. UD excess 5" DP while WOC (.!.70 jts). Then, RIH and tag plug #2 as per AOGCC regulations. POOH. Rack back the 3-1/2" DP for use on the sidetrack. 4. P/U a 9-5/8" EZSV. "Single in" with more 3-1/2" drill pipe to .!.3260' MD. Set the EZSV above the 9-5/8" shoe at +3260' MD. RIU Halliburton. Test lines to 3000 Psi. - .../' 5. Mix and pump Plug #3: 110 sx (22.5 bbl) of Premium cement. Squeeze cement across the 9-5/8" shoe. Dump the last 3.8 bbl of cement above the EZSV. Pull 3 stands and reverse out the 3-1/2" drill pipe at high rate. Test the plug & EZSV to 2500 psi. POOH. Rack back the 3-1/2" DP for use on the sidetrack [total 3-1/2" DP in the derrick .!.4500']. Plug #3: 110 sx, 22.5 bbl of Premium cement mixed at 15.8 ppg & 1.15 cf/sk S Coyner 2 4/13/2005 . . 6. LID 5" DP in excess of 3500'. Prepare to sidetrack the well. 7. P/U an 8-3/4" bit and Baker's 8-314" watermelon mill. "single in" with 21 jts of 3-1/2" HWDP followed by 3-1/2" DP to ±1750' MD/TVD. CBU. POOH. Rack back the DP & HWDP. 8. RIH with another 9-5/8" EZSV and set the top of the EZSV in joint #39 at 1715' MD. POOH. 9. Further operations fall under the Permit to Drill for Ataruq 2A. Drilling Program to follow. Attachments: . Well bore Schematics o PowerPoint · LWD log of the open hole section . Actual surveys S Coyner 3 4/13/2005 _ Surf 1000' 1452' _ 2000' _ 3000' c > I- _ 4000' Rig RKB :::: 105 ft Pad Elev:::: 72 ft , 68#, l-80 Conductor 12-1/4" Hole ~ EZSV for sidetrack at 1115' MD f TVD " " " " " " " 9-5/8",40#, L-80, BTC 3319' MD 13051' TVD " " " " " " " - - - - - - - -M. Brookian at 5404' MD 14613' TVD- Ataruq #2 (P & A) Plugs #1 & #2: 1100' MD, 96.5 bbl, 471 sx of Premium Cement. Tag Plug #2 EZSV at 3260' MD. Plu!:! #3,3210' to 3419', 50% OH excess 22.5 bbl, 110 sx Premium cement. TOC :::: 5200' MD -. -. -. - -. -. -. -. U. Tam at 5800' MD 14907' TVD-· -. -. -. -. -. -. -. -. -.- _ 5000' - -------L Tam at 6210' MD 15207' TVD------ ------- 8-1/2" Hole -~-6ÒOOf---Kuparuk C at 7195' MD 15957' TVD·-- -.--.-------.--- -- _ 7000' 7400' MD 16124' TVD S. Coyner: 4/13/2005 DIRECTIONAL SURVEY REPORT Kerr McGee Ataruq #2 Exploration North Slope Borough Alaska USA 50-103-20508-00 0.000 0.000 0.000 0.000 0.000 N 0.000 E 0.000 TIE IN . 146.150 0.710 218.660 146.146 0.707 S 0.566 W -0.770 0.486 239.040 0.670 226.670 239.030 1.529 S 1.320 W -1.678 0.112 333.820 0.570 226.040 333.804 2.237 S 2.063 W -2.470 0.106 422.060 0.710 216.140 422.038 2.983 S 2.701 W -3.288 0.202 960.010 1052.850 1148.980 1242.780 1336.850 1.250 1.310 1.590 1.790 1.540 227.980 230.940 226.510 225.500 215.210 959.925 1052.742 1148.841 1242.600 1336.630 9.119 S 10.465 S 12.076 S 13.998 S 16.061 S 8.079 W 9.655 W 11.476W 13.465 W 15.242 W -10.029 -11.557 -13.376 -15.525 -17.787 0.315 0.096 0.314 0.216 0.413 1906.460 1999.860 2094.430 2186.870 2281.990 7.530 11.390 14.300 17.370 20.980 7.490 7.850 10.370 12.540 13.420 1905.599 1997.712 2089.906 2178.828 2268.656 17.670 S 2.461 S 18.283 N 42.988 N 73.422 N 27.236 W 25.178 W 21.799 W 16.747W 9.710 W -20.836 -5.489 15.511 40.646 71.708 6.297 4.133 3.133 3.382 3.807 . 2849.430 2944.670 3036.210 3132.070 3227.170 45.630 45.330 45.150 44.160 42.340 10.990 9.470 7.770 7.620 6.670 2738.252 2805.032 2869.491 2937.681 3006.947 375.213 N 442.036 N 506.296 N 573.062 N 637.712 N 60.362 E 72.423 E 82.166 E 91.188 E 99.302 E 379.760 447.552 512.518 579.886 645.042 3.698 1.181 1.333 1.039 2.032 3778.290 3871.660 3961.620 4056.740 4152.700 4721.290 4814.260 4909.240 5002.240 5095.180 5662.330 5757.450 5852.500 5948.320 6043.300 41.320 42.620 41.730 41.140 42.480 41 .770 42.840 42.220 43.430 42.640 42.140 41.330 41.990 43.820 43.100 5.590 6.170 5.820 6.150 6.670 6.050 6.410 5.860 6.760 6.050 5.910 5.560 5.830 6.380 5.780 3418.888 3488.307 3554.976 3626.288 3697.811 4113.075 4181.832 4251.825 4320.034 4387.967 4804.931 4875.912 4946.924 5017.107 5086.049 1002.127N 1064.236 N 1124.304 N 1186.908 N 1250.479 N 1635.875 N 1698.080 N 1761.915 N 1824.747 N 1887.776 N 2269.959 N 2332.961 N 2395.829 N 2460.688 N 2525.651 N 134.098 E 140.499 E 146.809 E 153.371 E 160.517 E 208.332 E 215.124E 221.988 E 228.941 E 236.020 E 277.244 E 283.573 E 289.844 E 296.786 E 303.708 E 1010.989 1073.417 1133.807 1196.745 1260.713 0.504 1 .453 1.023 0.661 1.442 1649.063 1711.633 1775.830 1839.042 1902.464 1.116 1.180 0.761 1 .458 0.997 . 2286.827 2350.132 2413.297 2478.520 2543.843 0.920 0.886 0.720 1.949 0.874 6605.480 40.920 6.390 5497.857 2905.781 N 347.271 E 2926.451 1.347 6700.370 40.050 6.180 5570.027 2967.018 N 354.017 E 2988.054 0.928 6794.440 38.850 6.110 5642.665 3026.446 N 360.415 E 3047.819 1.277 6888.270 37.990 6.020 5716.178 3084.427 N 366.576 E 3106.120 0.918 . 6982.870 38.770 7.140 5790.336 3142.771 N 373.311 E 3164.851 1.105 Run No. 2 3 To 7,400.00 ft 117 To ND: ~ft Field Plot Dale \.1 Borehole Record (MD) Run No. To Size )0 ft ft JOft Size <Ie 9.625 in 40.00 From SURFACE To 3.319.00 ft n. o 0:: U) !.. .co ;0:: Q.C) U) From To Job No. #2 :é 'I j ~ Field ¡tic ~ ~ Caur USA g II> II> ~ !¡ ~ ~ ~ API Number 50~103-20508-00 I .. cr II! ~ ! 3 J j ~ ~ Latitude : 70° 19' 40.48" North ! : 1500 g' 23.01" West ~ E 'U ~ ~ '" AI< 4X '!j u: æ AI< STATE PLANE ZN.4Y::: Permanent Datum : Mean Sea level 0.00 ft 'eO From . Drill Floor 10U2f1 Elev. Other Services 12.(1) ft a.. a.. a.. n. )( U) :e c w w w w U) U) U) U) N d U) c.. z .... c :i w t: U) 10 10 '<t <") 3500 3600 3700 ..... 3800 3900 .:> 4800 4900 5000 5100 5700 5800 5900 6000 6100 6300 6400 6800 6900 7000 7100 7200 SGRC SROP o 7400 MD 7300 I" ;:t. 2000 2.;.2__________________ 0.2 SEDP SEMP 2000 pI.! .. . . . DATE: 4 April, 2005 TO: Jeff Jones - AOGCC Inspector FROM: Mike Ross - Company Man for Kerr McGee on the Nabors 27E rig Jeff, Thank you for your patience during the diverter test and rig inspection dated 3 April, 2005. Please accept our apologies for the short delay while we found the improperly plugged in line between the sub and the motor section of the rig. The four non compliance items discovered during your April 3/2005 diverter test and rig inspection have been corrected as of this date. 1. The audible alarm output volume has been increased for the fluid level alarms on the pit volume totalize. This was the subject of two of the noted deficiencies. 2. The methane sensor in the cellar has been changed out and allowed to warm up for 24 hours as per recommended breakin procedure for this equipment. It now has been tested and is functioning correctly. Because the detector had malfunctioned no signal was going to the light and now that the sensor works so does the warning light. This corrected both of the deficiencies associated with the cellar gas detector. I have personally repeated the test of these items today and all work correctly. MEMORAN* TO: Jim Regg?/AtïL· 4t 1.-7/¿'l P.I. Supervisor ' 'He State 'AlaSka Alaska Oil and Gas Conservation Commission DATE: April 3, 2005 FROM: Jeff Jones Petroleum Inspector SUBJECT: Diverter Function Test Nabors 27E Kerr-McGee Ataruq #2 2050390 Exploration Operator Rep.: Mike Ross Contractor Rep.: Jim Greco MISC. INSPECTIONS: Location Gen.: P Well Sign: Housekeeping: P (Gen.) Drlg. Rig: Reserve Pit: N/A Flare Pit: NON- CONFIDENTIAL Op. phone: 743-2963 Rig phone: 743-2964 Op. E-Mail: Rig E-Mail: ACCUMULATOR SYSTEM: Systems Pressure: 2900 psig Pressure After Closure: 1700 psig 200 psi Recharge Time: 0:22 min:sec Full Recharge Time: 1 :33 min:sec Nitrogen Bottles: 8 @2150 P/F F/P - P - P - P - P P P N/A I '(;,rìtL~~ \)<;'\1 r.·V \. ; Ý~1.1'O'" Trip Tank: Mud Pits: Flow Monitor: MUD SYSTEM INSPECTION: Light Alarm P F P F V V Camp DIVERTER SYSTEM INSPECTION: Diverter Size: Divert Valve(s) Full Opening: Valve(s) Auto & Simultaneous: Vent Line(s) Size: Vent Line(s) Length: Line(s) Bifurcated: Line(s) Down Wind: Line(s) Anchored: Turns Targeted / Long Radius: ¡ShOP 21 1/4 in. P F/P 16 in. 114 ft. N/A P F/P N/A Methane H2S: GAS DETECTORS: Light F P Alarm F P Pad ..-- Entrance ~ ¡PiPe shed Motors/Pits Wind Rig 27E 116' ,," II" Test's Details April 3, 2005: I traveled to Kerr-McGee's Ataruq #2 site to witness a Diverter Function Test on Nabors rig 27E. Nabors personnel indicated they were ready to test the Diverter system on my arrival. When the system was activated, the annular preventer closed fully prior to the knife valve opening. I inspected the knife valve and noted that the attached hydraulic lines were not fire resistant. These lines were replaced with armored hydraulic lines of a larger diameter. The accumulator system did not operate properly, and an electrical problem was repaired. The Diverter system was re-tested and operated properly, with the knife valve opening in 8 seconds, prior to full closure of the annular ÎJ1 22 seconds. I inspected the vent line and found it straight and sturdy with warning signs in place, but it was not secured and several pieces of equipment were staged in front of the outlet. The equipment was removed and the vent line was chained down to pallets of mud sacks. .*- The gas alarms were tested and the LEL alarm at the bell nipple failed to operate. A faulty detector head was replaced but the new head requires a 24 hour warm up. The audible alarm for the PVT system was also inoperable, and Kerr- McGee has been granted a variance for the flow line monitor by the AOGCC engineering staff. I allowed drilling to proceed with the provision that until these substandard items are repaired and pass a re-test and the AOGCC is notified, the Baroid mud loggers will continuously monitor the PVT system and alert the driller via intercom of any alarms and that / the LEL be sampled at the bell nipple every connection with a calibrated hand held gas detector. Mike Ross (Kerr- v McGee Rep.) notified me on 4/4/05 that all failures had been repaired. / Summary: I witnessed a Diverter function test on Nabors Rig 27E, preparing to drill Kerr-McGee's Ataruq #2 exploration well. Problems with the knife valve, vent line, gas alarms and PVT alarms were noted. Total Test Time: ~ ££.;. Number of failures: § Attachments: Mike Ross (K-M) e-mail (1: Diverter Test (for inspectors) BFL OS/29/03 DIV Nabors 27E 4-3-05 JJ.xls Re: ATARUQ # 2 Permit To Drill . . Subject: Re: ATARUQ # 2 Permit To Drill From: Thomas Maunder <tom_maunder@admin.state.ak.us> Date: Fri, 25 Mar 2005 07: 11 :40 -0900 To: "Coyner, Skip" <Skip.Coyner@asrcenergy.com> ~OS-Os~ Jim, This is no problem switching rigs prior to starting operations. Thanks for the update. Tom Maunder, PE AOGCC Coyner, Skip wrote: Tom, Kerr Mcgee and ASRC Respectfully request permission to change the proposed rig from Nordic 3 to Nabors 27E. Our reasoning is that the 27E will be ~'@ilable first and time is of the essence if we are to drill the Ataruq # 2 prospect this year. Nab&s~hould be finished at the Kigun #1 location on Spy Island early next week. This appears to be significantly ahead of the Nordic rig. Thank you for your attention to this matter and I look forward to hearing from you. Sincerely, Jim Mosley - Drilling Supt for SkJp Coyner 907-339-62690fc 907-748-3689 cell 10fl 3/25/20057:11 AM Ataruq 2: Notice of Change of Ownership and Designation of Ope rat... . . David, I just want to ensure that you received the message (below) that a Designation of Operator form is needed for Ataruq 2. Thanks, Steve Davies AOGCC -------- Original Message -------- Subject:[Fwd: Ataruq 2: Notice of Change of Ownership and Designation of Operator Forms] Date:Mon, 14 Mar 2005 13:32:28 -0900 From:Stephen Davies <steve davies(~admin.state.akus> Organization:State of Alaska To: Skip Coyner <cOYTISÛCü:;bp.com> CC:Tom Maunder <tom maunder(a)admin.state.akus> Skip, FYI. Designation of Operator form needed. I assume that David Henke will coordinate this again. Steve Davies AOGCC -------- Original Message -------- Subject:Ataruq 2: Notice of Change of Ownership and Designation of Operator Forms Date:Mon, 14 Mar 2005 10:14:46 -0900 From:Stephen Davies <steve davies((i;admin.state.akus> Organization:State of Alaska To:Henke, David <dhenke((l)kmg.com> David, Steve Davies with AOGCC here again. I am finishing my review of the Ataruq No.2 permit to drill application. I did not find a Designation of Operator form for lease ADL 390502 in our files. To comply with regulation 20 AAC 25.020, Armstrong as owner must file form 10-411 with AOGCC to designate Kerr-McGee as operator for this property. Could you provide a signed original copy of this form so the technical staff can pass the permit application on to the Commissioners for approval? The fonn is available on our web site at w,,,'W.aogcc.alaska.gov. The pertinent regulation is attached for your convemence. Thanks for you help, Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission lof2 4/4/2005 10:57 AM Ataruq 2: Notice of Change of Ownership and Designation of Operat... 907-793-1224 . . 20 AAC 25.020 DESIGNATION OF OPERATOR. If an owner of a property wishes to designate a new operator for the property, the owner shall submit to the commission for approval a Designation of Operator (Form 10-411). The commission will not approve the designation of a new operator without the signature of the newly designated operator on the same Designation of Operator form. By signing the Designation of Operator form, the newly designated operator agrees to accept the obligations of an operator. The newly designated operator shall furnish a bond and, if required, security as provided for in 20 AAC 25.025. The commission's acceptance of the designated operator's bond constitutes the release of the former operator's bonding obligation for the property indicated on the Designation of Operator form. <>History - Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152 Authority - AS 31.05.030 20f2 4/4/2005 10:57 AM [Fwd: [Fwd: Ataruq 2: Notice of Change of Ownership and Designat... . . -------- Original Message -------- Subject:[Fwd: Ataruq 2: Notice of Change of Ownership and Designation of Operator Forms] Date:Mon, 14 Mar 2005 13:32:28 -0900 From:Stephen Davies <steve davies(G,')admin.state.akus> Organization:State of Alaska To:Skip Coyner <coynsO(a')bp.com> CC:Tom Maunder <tom maunder(à)admin.state.ak.us> Lr Lf ~fJtJS ~. Skip, FYI. Designation of Operator form needed. I assume that David Henke will coordinate this again. Steve Davies AOGCC -------- Original Message -------- Subject:Ataruq 2: Notice of Change of Ownership and Designation of Operator Forms Date:Mon, 14 Mar 2005 10:14:46 -0900 From:Stephen Davies <steve davies@admin.state.ak.us> Organization:State of Alaska To:Henke, David <dhenke(a¿kmg.com> David, Steve Davies with AOGCC here again. I am finishing my review ofthe Ataruq No.2 permit to drill application. I did not find a Designation of Operator form for lease ADL 390502 in our files. To comply with regulation 20 AAC 25.020, Armstrong as owner must file form 10-411 with AOGCC to designate Kerr-McGee as operator for this property. Could you provide a signed original copy of this form so the technical staff can pass the permit application on to the Commissioners for approval? The fonn is available on our web site at www.aogcc.alaska.gov. The pertinent regulation is attached for your convemence. Thanks for you help, Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission 907-793-1224 20 AAC 25.020 DESIGNATION OF OPERATOR. If an owner of a property wishes to designate a new operator for the property, the owner shall submit to the 10f2 4/4/2005 10:56 AM [Fwd: [Fwd: Ataruq 2: Notice of Change of Ownership and Designat... commi"ion for approval a Delation of Operator (Form 10-411). The comlon will not approve the designation of a new operator without the signature of the newly designated operator on the same Designation of Operator form. By signing the Designation of Operator form, the newly designated operator agrees to accept the obligations of an operator. The newly designated operator shall furnish a bond and, if required, security as provided for in 20 AAC 25.025. The commission's acceptance of the designated operator's bond constitutes the release of the former operator's bonding obligation for the property indicated on the Designation of Operator form. <>History - Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152 Authority - AS 31.05.030 20f2 4/4/2005 10:56 AM . ~f!~~! rnlJ ~l!Æ~æ~ . AltA.~KA. OILAlVD GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. T" AVENUE, SUITE 100 ANCHORAGE. ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Todd Durkee Drilling Manager Kerr McGee Oil & Gas Corporation 3900 C Street, Ste 744 Anchorage, Alaska 99503 Re: Ataruq#2 Kerr McGee Oil & Gas Corporation Permit No: 205-039 Surface Location: 477' FNL, 1834.6' FEL, SEC. 8, T11N, R8E, UM Bottomhole Location: 3064' FSL, 1393' FEL, SEC. 5, T11N, R8E, UM Dear Mr. Durkee: Enclosed is the approved application for permit to drill the above referenced exploration 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. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. 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 permy Please provide at least twenty-four (24) hours notice for a representative of the Commisst>n b witness any required test. Contact the Commission's petroleum field inspeC((5or '59- (pager). . el, ----- J orman 11.1 Chairman DATED this 1..f day of March, 2005 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. · . ~ KERR-MCSEE COIIPtJRATION RECEIVED MAR 0 7 2005 Alaska Oil & Gas Cons. Commission Anchorage March 8th, 2005 Commissioner Alaska Oil and Gas Conservation Commission 333 W 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Ataruq #2 Kerr McGee Oil & Gas Corporation Application for Permit to Drill (10-401) Attached for your review is our Application for Permit to Drill the Ataruq #2 exploration well located approximately four (4) miles north-northwest from KRU's 2M Pad.. This original APD is submitted along with one (1) copy and the $100.00 filing fee. The APD packages include form 10-401, a pressure analysis, a shallow hazard analysis, a comprehensive drilling hazard analysis, drilling program, directional drilling plan, drilling mud program, plats, graphs and diagrams as required. The Ataruq #2 is a "build and hold" well with KOP at 1750' (±300 ft below the B/Permafrost). At TMD (below the Kuparuk A) we will log with E-Line and run MDT's if applicable. After evaluating the well, we plan to plug and abandon the open hole section, and then drill a sidetrack from a window in the 9-5/8" casing at ±1700' MD. This was an Armstrong Oil and Gas lease but Kerr McGee has been designated as operator. An assignment approved by DNR is included in the APD package. If you have any questions or concerns about the APD or the drilling plan, please call me at 339-6269 and I will do my best to address your questions or concerns. Sincerely, i/g,Sr---- ASRC Energy Services Project Drilling Supt. 3900 C Street Suite 702, Rm 744 Anchorage, AK 99503 I. L. (907)-339-6370 1a. Type of Work: Drill [2] Redrill D Re-entry D f(EGFt\IC~t eALASKA OIL AND ~:~~g:S~A~O&MMISSION MAR 0 7 ZOOS fr.,ft'1 PER~~¿~.o~~ILL Alaska Oil & Gas Cont. Gùmmission 1b. Current Well Class: Exploratory [2] Development Oil ~1I~álM.zone D Stratigraphic Test D Service D Development Gas D Single Zone D 5. Bond: Blanket [2] Single Well D 11. Well Name and Number: Bond No. 3-798-381 Ataruq #2 6. Proposed Depth: 7 <;"3iY ~ z.D3" 12. Field/Pool(s): MD:~ TVD~~ 7. Property Designation: /:9> ~. f/.f,t>Ç ADL 390502 Exploration 2. Operator Name: Kerr McGee Oil & Gas Corporation 3. Address: 3900 C Street, Ste 744, Anchorage, AK 99503 4a. Location of Well (Governmental Section): Surface: 477' FNL & 1834.6' FEL Sec. 8, T11 N, R8E UM ,.. Top of Productive Horizon: 1860' FSL & 1550' FEL Sec. 5, T11 N, R8E UM' Total Depth: 3064' FSL & 1393' FEL, Sec. 5, T11 N, R8E UM 4b. Location of Well (State Base Plane Coordinates): Surface:x- 480716 y- 5,969,528 Zone- ' 4 16. Deviated wells: Kickoff depth: 1750 feet Maximum Hole Angle: 42.5 degrees 8. Land Use Permit: 13. Approximate Spud Date: 3/20/2005 14. Distance to Nearest 9. Acres in Property: Hole 24" Casing 13-3/8" 9-5/8" Specifications Weight Grade Coupling Length 68# L-80 PE/BFW 80 40# L-80 BT&C 3301 2469 J Property: 1393 10. KB Elevation 15. Distance to Nearest Well (Height above GL): 30.4 feet Within Pool: None ' 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: 3450 psi' Surface: 2795 psi Setting Depth Quantity of Cement c.f. or sacks Top Bottom 18. Casing Program: Size 12-1/4" MD 30 30 TVD 30 30 MD 110 3331 TVD 110 3100 (including stage data) ".- 345 cu-ft of Ready Mix 319 sx Permafrost L (235.6 bbl) 286 sx Premium CMT (58.7 bbl) 8-1/2" 19. Total Depth MD (ft): PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Structural Conductor Surface I nterm ediate Production Liner Length Size Cement Volume MD TVD Perforation Depth MD (ft): Filing Fee l:j BOP Sketch l:j Property Plat [2] Diverter Sketch [2] 21. Verbal Approval: Commission Representative: 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. ?c..-- Title Drilling Program l:j Seabed Report D Perforation Depth TVD (ft): Time v. Depth Plot l:j Shallow Hazard Analysis l:j Drilling Fluid Program [2] 20 AAC 25.050 requirements [2] Date Contact 20. Attachments: Printed Name ~r.T ddDU~~, } l ' I . Drilling Manager, Kerr McGee Oil & Gas Corporation Signature 9ol-*38<i..Coj TO Date + lv'\.~\ê._ c...a:::£ Phone Commission Use Only Permit to Drill 20, ".~ ð39IAPI Number: . '.... "". :",\, I Permit Approval Number: ~ - 50- /03- 2...D5:ùß 'u6 Date: Conditions of approval : ¡See cover letter for other requirements. Other: ·~SOO 'W-A Approved by: Samples required Yes ~ No D Mud log required oge ulfi measures C\ . Yes 12( No D. . Directio. nal ~urvey required Ù'> \' \c.t\~(.I';,(), ~Q '? \. (. '> \'\ ,,\<2, ~~Q. \ '=-. ~ Ð G.,,,::> 1. ~~w.'.;¡,J .". L- y ~ '::>. APPROVED BY TH~t9rArSION Date: Yes.B:f No D Yes 8 No D 8jz/ ¡Os Submit inDuplicate . . )' '.", "-... . ........ .. ~ KER.MCSEECOa Ataruq #2 Drilling Prognosis I ADL: 0390502, 2469 acres I Drill, Evaluate, Plug and Abandon I AOGCC Permit No.: I Drilling Rig: Nordic 3 Suñace Location: 477' FNL & 1835' FEL of Section 8, T11 N, R8E UM X = 480,716' Y = 5,969,528' 1860' FSL & 1550' FEL of Section 5, T11 N, R8E UM X = 481,007' Y = 5,971,864' 2837' FSL & 1421' FEL of Section 5, T11 N, R8E UM X = 481,128' Y = 5,972,841' 3064' FSL & 1393' FEL of Section 5, T11 N, R8E UM X = 481,156' Y = 5,973,068' Target (T1) at 4878' TVD (Tarn sand) Target (T2) at 5953' TVD (Kuparuk C sand) Bottom Hole Location: I Estimated Spud Date: 13/22/05 I I Operating Rig days: 112 I Pad Elev: 172 ft I DF: 1102 ft I I TMD: 17,538 I I TVD: 16,203' I ' I Geologic Objectives: Tarn sand & Kuparuk A & C sands Mud Program: 12-1/4" Intermediate Hole (Suñ - 3330'): Density PV YP HTHP 9.0-9.8 13-20 15-30 n/a pH 9.0-9.5 KCL-Polymer API W/L LG Solids < 6 < 10 8-1/2" Production Hole (3330' - 7538'): Density PV YP HTHP 9.3-11.5 9-18 12-20 10-11 pH 9.0-9.5 MOBM (LVT200) API W/L LG Solids < 6 < 10 S Coyner 3/5/2005 . . Recommended Bit Program: Bit Hole Size Depth (MD) Footage 1 12-1/4 in Surf' - 3,330' 3,330' 2 8-1/2 in 3,330' - 7,538' 4,208 Bit Type GTC-1 PDC RPM 1 00 - 120 1 00 - 120 GPM 500 - 650 400 - 550 Casing Program Hole Csgl WtlFt Grade Conn Length Top Bottom Size Tbg O.D. MD 1 TVD MD 1 TVD N/A 13-3/8" 68# L-80 BTC 80' 30' 110' 1 110' 12-1/4" 9-518" 40# L-80 BTC 3,300' 35' 1 35' 3,330' 1 3,100' Cement Program: Casing Size 9-5/8", 40#, L-80, BTC-M Intermediate Casing at 3,330' MD 100% Excess above BIPermafrost & 25% Excess below. Shoe track = 85'. TOC of Tail Slurry = 2580' MD (750'). Cement: 294.3 bbl Wash 10 bbl water Spacer 30 bbl of NSCI spacer mixed at 10.5 ppg Lead 235.6 bbl, 319 sx Permafrost L, 10.7 ppg & 4.15 felsx Tail 58.7 bbl, 286 sx "G" mixed at 15.8 Ib/gal & 1.15 fe/sx Temp Casing Point BHST 800 F (from Halliburton) Parameters: Surveys & MWD: While Drilling: Surface to TD: MWD surveys every 90 to 180 ft IIFR Casandra for magnetic survey verification / Mud Logging: Suñace Hole: 12-1/4" Production Hole: 8-112" Rig instrumentation: PVT, Flow-Show, gas [H2S] detectors. ' Mud loggers to intermediate casing point: samples every 30 ft: every 10ft through pay zones, gas detection & drilling parameters Rig instrumentation to TD: PVT, Flow-Show, gas [H2S] detectors. Mud loggers to intermediate casing point: samples every 30 ft: every 10ft through pay zones, gas detection & drilling parameters S Coyner 2 3/5/2005 MD rvD (ft) (ft) B/Permafrost 1,453' 1,453' T/Tabasco 2,792' 2,703' 900 6.40 T/Colville 3,199' 3,002' 1,335 8.55 T/Tarn 5,741' 4,878' 2,169 8.55 T/Moraine 6,250' 5,253' 2,335 8.55 T/HRZ 6,726' 5,604' 2,914 10.00 T/Kuparuk C 7,199' 5,953' 3,450 11.15 LCU 7,240' 5,983' 3,470 11.15 T/Kuparuk A 7,240' 5,983' 3,470 11.15 Proposed TD 7,538' 6,203' 3,596 11.15 » Due to potential inaccuracies with the seismic velocity, these formation tops may change . Evaluation Program: 12-1/4" Suñace Hole Open Hole: MWD 1 LWD: Open Hole: E-Line: 8-1/2" Production Hole Open Hole: MWD 1 LWD: Open Hole: E-Line: Formation Markers: Formation Tops Integrity Testing: Test Point: 9-5/8" Shoe MD 1 TVD 3330' 13100' Kick Tolerance ~ 50 bbls Test Type: LOT EMW: 13.5 ppg Well Control: . MWD I Triple-Combo LWD's Gas Detection, Mud Logging, samples None planned .. MWD I Triple-Combo LWD's I PWD Gas Detection, Mud Logging, samples Quad-Combo, dipole sonic, MDT's and SWC's '" / Pore Pressure (psi) EMW (Ib/gal) A multi-bowl casing head will be installed on the 13-3/8" conductor along with a 13-5/8" diverter spool and the 16" Diverter Line. The 13-5/8" BOP stack will be N/U above the diverter spool and the BOP stack will be configured to use the 13-5/8" annular as a diverter. The surface hole [12-1/4"] will be drilled to casing point in the Colville mudstones using the diverter system for secondary well control. At casing point, 9-5/8" surface casing will be set and cemented to surface. It is planned to use a 9-5/8" FIO tool to circulate cement out of the 13-3/8" x 9-518" annulus and freeze protect same down to ± 80 ft below RKB. Both strings will be cut and recovered later. S Coyner 3 3/5/2005 . . After setting and cementing the 9-5/8" surface casing, the diverter spool outlet will be blanked oft with a blind flange. The 13-5/8" (5M) BOP stack will be reconfigured and tested. The intermediate and production hole sections will both be drilled with well control equipment consisting of 13-5/8" (5000 psi) working pressure pipe rams(2), blind rams, and annular preventer capable of handling maximum potential surface pressures. BOP's will be tested when installed and then on a weekly basis thereafter. Any ram changes and / or flange "breaks" will be tested before continuing. The rams, valves and manifold will all be tested to 250 psi low /5000 psi high, the annular tested to 250 psi low / 3500 psi high, the casing to 2500 psi. The maximum anticipated Surface Pressure is calculated from nearby Kuparuk C BHP data and a gas gradient of 0.11 psi/ft to surface as required: Kuparuk C BHP = 3450 psi Maximum Surface Pressure = 3450 psi - (5953 ft x 0.11 psi/ft) = 2795 psi Disposal of Drillina Waste: · Cuttings Handling: Cuttings generated from drilling operations will be hauled using super suckers to G & I #3: located on DS-04, Prudhoe Bay, for disposal. · Fluid Waste Handling: All drilling and completion fluid wastes will be hauled to 1 R-18 at Kuparuk for disposal. · Sewage (grey/black water): Camp waste water will be hauled to the sewage treatment plant(s) at Kuparuk / Prudhoe Bay / North Slope Borough where it will be treated and injected. H2S: · H2S has been reported from wells on 2T Pad that produce from the Tabasco sand. " H2S concentrations of 700 ppm have been measured at the wellhead. Minor concentrations of H2S have also been reported from the Kuparuk sands as well. " · W2S monitors will be used at all times in accordance with State Regulations. S Coyner 4 3/5/2005 . . DRilLING AND ABANDONMENT PROCEDURE Pre-Rig Work: 1. Install the cellar and set the 13-3/8" non-insulated conductor to .± 110' RKB. 2. NU the 13-5/8" (5M) casing head on the 13-3/8" drive pipe (conductor). 3. Spot and fill the reserve fuel tank. 4. Spot and fill the reserve water tank 5. Stockpile mud and cement supplies on location. 6. Stockpile casing and tubing on/near location. 7. Ensure communications are up and running: satellite phones, cellular phones & radios. 8. Spot the medic skid and have the PIA on duty. 9. Ensure the permits are in order. 10. Notify the AOGCC 24 hours prior to spud, diverter function test, and the BOP test. Standard Orders: 1. All personnel must sign in at the camp and no unauthorized personnel are allowed on site. 2. For travel safety and location security, all travelers must sign in/out at the security guard post near the spine road AND sign in/out at the assigned camp. 3. A full opening safety valve (with correct threads) will be kept on the drill floor in the open position at all times and the appropriate hex-wrench will be readily available. 4. Pit drills/kick drills will be conducted one with each crew in each hole section. 5. Slow pump rates will be taken each tour while drilling AND after drilling 1000' of new hole AND after any significant changes in the mud properties. 6. The toolpusher and company man will witness the first ten (10) stands off bottom for all trips. Use the trip tank. Keep a detailed trip sheet. Keep the hole full. Watch for swabbing. Drilling Operations: 2. MIRU Nordic 3, the camps, communications, medic skid, rig instrumentation, directional drilling equipment, LWD equipment, gas detectors, PVT, Flo-Show, etc. 3. N/U Nordics' 13-5/8" stack on the diverter spool. Configure and function test the BOP stack/diverter system with the AOGCC field supervisor present to witness the test. Suñace Hole Section: 4. Take on water and/or mix spud mud. Make sure all solids control equipment if operating at capacity. Test run the pumps, Top Drive, SCR, Draw works, etc. before accepting the rig. 5. Clean out the conductor to 110'. P/U 4" drill pipe and rack it in the derrick. P/U 4" HWDP and rack it back. P/U the 12-1/4" Pilot Hole BHA with MWD/GR/RES tools. Prepare to spud. 6. Rotary drill to surface casing point following the attached directional drilling plan. Control drill if necessary as limited by the solids control equipment, etc. Use Super Suckers and vac trucks to haul off the waste generated while drilling. The planned casing point is in the Colville. This string will be set on a mandrel hanger. Drill the hole to fit your tally. 7. At casing point, circulate the hole clean. Make a wiper. Pump out to the HWDP, and then finish POOH. UD LWD tools as required. R/U to run 9-5/8" surface casing. S Coyner 5 3/5/2005 . . 8. Run and cement the 9-5/8", 40# surface casing as programmed. After circulating cement to ,/ surface, drain and wash out the BOP stack. RIH with the F/O tool. Open the F/O tool and circulate out the cement to ±. 80' RKB with KCL/Polymer mud. Close the F/O tool. POOH. 9. Set and test the 9-5/8" casing packoff. Test the 13-5/8" BOP's. Test the BOPE to 250 psi 1 5000 psi. Test the annular to 250 psi 1 3500 psi. The AOGCC field inspector should witness the BOP test. 10. P/U the 8-1/2" bit and BHA. RIH to the float collar. Test the casing to 2500 psi on chart for 30 minutes. Drill out the shoe track and 20 ft of new hole. Circulate the hole clean. Perform a LOT expected to be ~ 13.5 ppg EMW. Production Hole Section: 11. Drill ahead adjusting the mud weight as dictated by hole conditions and in accordance with the attached mud program. Maintain the mud properties to minimize the PV, surge, swab and ECD while still cleaning the hole. Watch for mud losses, seepage and differential sticking in the Tarn sand at ±.5741 , MD. Adjust the MW up to ±. 10.6 ppg to drill the HRZ. 12. At +700' MD, Make a 15 stand wiper trip. Then, adjust the MW up to ±. 11.5 ppg to drill the Kuparuk C sand. Be sure the hole is clean and minimize the ECD. Drill ahead watching for mud losses, seepage and differential sticking. Keep the pipe moving at all times. Bit 2 Hole Size 8-1/2 in Depth (MD) 3,330' - 7,538' Footage 4,208' Bit Type PDC RPM 900 - 120 GPM 450 - 550 13. At TO, CBU x 3 and then as needed to clean the hole. Make a 20 stand wiper trip. RIH and CBU x 3 again. POOH to the 9-5/8" shoe and then CBU from there. POOH for logs. 14. RlU E-Line. Run Log suite as directed, followed by MDT's and SWC's as/if directed. 15. RID E-Line. RIH with OEDP and prepare to plug and abandon. Attachments: · Assignment of Operator - Approved by DNR · Survey plat (Lounsbury) · Geographic Plat (PowerPoint) · Days -vs- Depth Graph (Excel) · Well bore Schematic (Excel) · Well bore Diagram (Powerpoint) · Directional Drilling Plan (Sperry) · Drilling Mud Program (Baroid) · Abnormal Pressure Analysis · Shallow Hazard Study · Nordic 3 BOP & Diverter diagram · Nordic 3 Choke Manifold Diagram S Coyner 6 3/5/2005 () -- SFD . . FRANK H. MURKOWSKI GOVERNOR DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS 550 WEST 7TH A VE, SUITE 800 ANCHORAGE, ALASKA 99501 PHONE: (907) 269-8800 FAX: (907) 269-3484 Stuart Gustafson, VP Operations ARMSTRONG OIL & GAS, INC. 700 17~ St. Suite 1400 Denver CO. 80202 January 28, 2005 David A. Hager, President KERR McGEE OIL AND GAS CORPORATION 16666 Northchase Dr. Houston Texas 77060 Re: Assignment of Plans of Operation from ARMSTRONG OIL & GAS, INC., to KERR-McGEE OIL AND GAS CORPORATION LOINS 04-11 Two Bits Dear Mr. Gustafson The Division of Oil and Gas (DO&G) has reviewed your letter dated January 27, 2005, requesting the above referenced Plans of Operations issued to ARMSTRONG OIL AND GAS, INC. by the DO&G, August 30, 2004 be assigned to KERR-McGEE OIL AND GAS CORPORATION. Effective this date, and under 11 AAC 82.605 the Division of Oil and Gas approves the assignment of these Plans of Operations approvals, from ARMSTRONG OIL AND GAS, INC. to KERR-McGEE OIL AND F GAS CORPORATION. If you have any further questions regarding the assignment of these Plans of Operation, please do not hesitate to call me at 269-8777. Sincerely ~ /~//' Steven Schmitz Natural Resource Specialist III ecc: Leon Lynch, DMLWM Kathy Sheehan Dugan, OPMP David Hager, Kerr-McGee O&G Corp. "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans. " REi DATE I " 1 OK I" DESCRIPTION NOTES: 1. BASIS OF HORIZONTAL AND VERTICAL LOCA TION IS NAD 27. 2. COORDINA TES SHOWN ARE ALASKA STA TE PLANE ZONE 4, NAD 27. 3. GEOGRAPHIC COORDINA TES ARE NAD 27 ELEVA TIONS ARE BPMSL. 4. ALL DISTANCES ARE TRUE. S.ICE PAD IS ROTA TED 70' EAST FROM NORTH. N + SCALE: 1" = 200' n D~'~r ~\¡\. ~,J ¡ f ~\ ,\ '..~ :,~ ' r~~ \~m)j"u,: '\I~ ·~~\1 ' THIS) (/ I SURVEY (::i:l ," '>········'1\1 '6 ¡ 0 roo .. . ... _mit., \~i; k ] \.;.~) i (, \~f· \,; \\ \ ¡ ,: -,,,..~j \i; ~,_._::.?:--, ~>.c \ : ......, \ // ¡ ,-,~ ,e' VICINITY MAP (J<'III)KERR-MCGEE CORPORATION CADD FILE NO. LK601D596 I DRAWING NO: 2/24/05 RIG PAD - SKETCH APP I DESCRIPTION - 2 MILES ATARUQ #2 LOCA TED WITHIN PROTRACTED SEC.8 T 11 N, R 8 E, UMIAT MERIDIAN. 477' F.N.L., 1834.6' F.E.L. LAT = 70' 19' 40.5" N LONG = 150' 09' 23.0" W ALASKA STATE PLANE ZONE 4 NAD 27 Y = 5969528 X = 480716 GROUND ELEVATION = 69' TOP OF RIG PAD ELEV. = 72'+ /- ~ LOUNSBURY & ASSOCIATES. INC. S~VEYORS ENGINEERS PLANNERS A TARUQ #2 DRILL RIG PAD TOPO I PART: I REV: 1 OF 1 0 Atarua No. 70019' 40.5" N & 150009' 23.0" W 477' FNl & FElof 8 T11 N RBE 5,969,528' N & 480,716' E NAD Zone 4 1860 & 5,971,864' N & 481,001' E 2837' & 5,972,841' N & 481,1 3064' FNL & 1 FEL of Section 5 T11 N R8E N & 481 ,156' E NAD 4 ADl 0390502 (2469 Armstrong 0 .& G Kerr McGee 0 .& G BHL. Kuparuk C Sd. ~1421' FEL Î ....I (f¡ !.I. ¡:... M «> '" 5 Tam Sd. 477' FNL ($urface Location) 8 ....I I/) !.I. ;¡. '" <::> M FEL ¡ I I I ....I (f¡ 1.1.. "" '" «> ~ w "'" .., f 477' FNL " 1834.6' FEL : : þo Ataruq #2 Days -v... Depth 0 1 1- - -j- - - - ~:- - ~ - -. - + 1 I 1 I I I 1000 I 1 I I I 1 1 1 I 1 1 1 I - - , - ----,-- --T r 1 1 I 1 2000 1 1 1 1 -I - - - 'I - - T - -, I I 1 3000 1 1 J: :19-5/8" at MD ~---- ...... Q. 1 Q) _L __1,__- ~ - _ 1 _I C -g 4000 \ ~ -. :J 1 ì fI) I 1 1 1 1 1 1 «S 1 I 1 1 .., + - - -,1 -- - + --¡.. Q) 1 1 :æ I 18-1/2" Hole I I 1 I 1 1 1 1 I 5000 1 I 1 I I 1 I 1 1 1 -,- -----,-- T - - -I T - 1 -r 1 I 1 I ~I I 1 6000 I I I I I I 1 1 - - _I _ _ 1 - ~ __~I_._- 1 1 , I 1 1 I -I "' - - I . - - " - -.... ~ I I _.' _ _ _ -L.-_ I 7000 8000 ¡ i ,',\ I E-Line Evaluation I , I' o 5 10 15 Rig Days - DIR / LWD MWD NONE GR I RES IIFRfCas Triple-Combo PWD IIFR/Cas MUD I WEIGHT 9 FORM Base Permafrost Kick Off Point TlTabasco Sd. End Build Section Top of Tail Slurry Tarn Sand taruq #2 5,741' 4,878' 42.5° 42.5" 42.5° T/Moraine 6,250' 5,253' E-Line: T/HRZ 6,723' 5,604' Diploe Sonic MDT's, SWC's 42.5° "I-Shot T/Kuparuk C 7,199' 5,953' LCU/Kuparuk A 7,240' 5,983' 9 10 11 HOLE I 00 0° 8.5" 68 #, L-80 13-3/8" 68 Ib/tt L-80,BTC Int. Yield 5020 psi Collaspse 2260 psi 40# Int. psi Collaspse 3090 psi 1 ea Float Shoe 1 ea Float Collar , , , , , , , , , , , , , - . - . - . - . - . - . - . - . - . - . - . - . - . - . - Tarn at 4877' TVD - . - . - . - . - . - . - . - . - . - -. - , _ 5000' , , 8-1/2" Hole ' , , , _ Surf 1000' 1452' _ 2000' _ 3000' _ 4000' RKB :::: 102 ft Eiev:::: 72 ft , 68#, L-80 Conductor 12-1/4" Hole KOPat 1150': Build at 4° 1100 ft Q ~ 9-5/8",40#, l-80, , 3331' MD 1 3100' TVD , , , , , , , , , , , , , , , , , , ----·------------Kuparuk Cat 5953' _ 6000' _ 7000' -'-'-'-'-'-'-'-'-'-'- -.-.-.-.-,-.-. , o Kerr-McGee Corporation Western North Slope, Alaska Two-Bits Exploration Ataruq #2 (wp05) Revised: 2 March, 2005 Sperry-Sun Prp.;pp'äl Report rch, 2005 Surface Coordinates: 5969528.00 N, 480716.00 E (70019' 40.4816" N, 150009' 23.0084" W) Grid Coordinate System: NAD27 Alaska State Planes, Zone 4 Surface Coordinates relative to Global Coordinates: 86269.49 S, 38953.03 W (Grid) Surface Coordinates relative to 47TFNL, 1834.6' FEL: 0.00 N, 0.00 E (True) Kelly Bushing Elevation: 1 02.65ft above Mean Sea Level Kelly Bushing Elevation: 30.65ft above Pad Elev = 72' MSL Proposal Ref: pro979 HALLIBURTON . e 1000 - 2000 - J:: 15. ¿¡ 3000 -¡¡¡ <) 'E () > 4000 - 5000 - SHI. 477' 1'1011. 8. 1334.S' FEI., Sec. 8 . T11N . RilE rl 600.00 M 1200.00 ~o.oo "---..~ Begin Dlr @ 4.0°11 OOft In 12-114" Hole: 1750.00ft MD, 1750.00lt TVD Well: Ret Geographical Coordinates: 102.65# above Me$o 30.65' above Pad Elev True North Feet (US Survey) - 3600 - 3000 - 2400 - 1800 - 1200 - 600 - Scale: iinch = 600ft Eastings o 600 I I 1200 I _..... _Proposed Total Depth: 753788ft MD, 6202.65ft TVD 5900.00 ii) ! fii! 2 ;p 3500.00 ... Segln ¡¡·314" Hcle : 3100.00ft TVO End Dir, Start Sail @ 42.48° 2812.04ft MD. 2717.37ft TVD Scale: 1inch:: - 3600 - 3000 2400 (fJ 0> <:: :ï: 1:: <:> Z - 1800 - 1200 ~ o <s:> - 600 II -5 .S: .... òj -¡¡¡ <) (f) N/S 721.07 N 87.81 E x 0.00 v.s. 726.40 Comment Kerr-McGee Corporation HALLIBURTON North Slope, Kerr McGee Proposal Report for Two-Bits Exploration - Ataruq #2 (wp05) Revised: 2 March, 2005 Measured True Sub-Sea Vertical Local Coordinates Global ?'Dogleg Vertical . Depth Incl. Azim. Depth Depth Northings Eastings Northings Rate Section Comment (ft) (ft) (ft) (ft) (ft) ('/100ft) 0.00 0.000 0.000 -102.65 0.00 0.00 N N E 0.00 SHL (477' FNL & 1834.6' FEL, ...-"' Sec. 8 - T11N - R8E) 100.00 0.000 0.000 -2.65 100.00 0.00 480716.00 E - 0.000 0.00 200.00 0.000 0.000 97.35 200.00 0.00 480716.00 E 0.000 0.00 300.00 0.000 0.000 197.35 300.00 0.00 480716.00 E 0.000 0.00 400.00 0.000 0.000 297.35 400.00 N 480716.00 E 0.000 0.00 500.00 0.000 0.000 0.00 E 5969528.00 N 480716.00 E 0.000 0.00 600.00 0.000 0.000 0.00 E 5969528.00 N 480716.00 E 0.000 0.00 700.00 0.000 0.000 0.00 E 5969528.00 N 480716.00 E 0.000 0.00 800.00 0.000 0.000 0.00 E 5969528.00 N 480716.00 E 0.000 0.00 900.00 0.000 0.000 0.00 E 5969528.00 N 480716.00 E 0.000 0.00 1000.00 0.00 N 0.00 E 5969528.00 N 480716.00 E 0.000 0.00 1100.00 0.00 N 0.00 E 5969528.00 N 480716.00 E 0.000 0.00 1200.00 0.00 N 0.00 E 5969528.00 N 480716.00 E 0.000 0.00 1300.00 0.00 N 0.00 E 5969528.00 N 480716.00 E 0.000 0.00 1400.00 0.00 N 0.00 E 5969528.00 N 480716.00 E 0.000 0.00 e 1350.00 1452.65 0.00 N 0.00 E 5969528.00 N 480716.00 E 0.000 0.00 Base Permafrost 1397.35 1500.00 0.00 N 0.00 E 5969528.00 N 480716.00 E 0.000 0.00 1497.35 1600.00 0.00 N 0.00 E 5969528.00 N 480716.00 E 0.000 0.00 1597.35 1700.00 0.00 N 0.00 E 5969528.00 N 480716.00 E 0.000 0.00 1647.35 1750.00 0.00 N 0.00 E 5969528.00 N 480716.00 E 0.000 0.00 Begin Dir @ 4.0o/100ft in 12-1/4 Hole: 1750.00ft MD, 1750.00ft TVD 1800.00 2.000 6.943 1697.34 1799.99 0.87 N 0.11 E 5969528.87 N 480716.11 E 4.000 0.87 1900.00 6.000 6.943 1797.08 1899.73 7.79 N 0.95 E 5969535.79 N 480716.97 E 4.000 7.85 2000.00 10.000 6.943 1896.08 1998.73 21.60 N 2.63 E 5969549.59 N 480718.69 E 4.000 21.76 2100.00 14.000 6.943 1993.88 2096.53 42.24 N 5.14 E 5969570.22 N 480721.25 E 4.000 42.55 2200.00 18.000 6.943 2089.98 2192.63 69.59 N 8.47 E 5969597.57 N 480724.65 E 4.000 70.11 2 March, 2005· 10:07 Page 2 of 8 DrillQuest 3.03.06.008 Corporation HALLIBURTON North Slope, Kerr McGee Proposal Report for Two-Bits Exploration - Ataruq #2 (wp05) Revised: 2 March, 2005 Measured True Sub-Sea Vertical Local Coordinates Global Vertical . Depth Incl. Azim. Depth Depth Northings Eastings Northings Section Comment (ft) (ft) (ft) (ft) (ft) (ft) 2300.00 22.000 6.943 2183.93 2286.58 103.54 N 12.61 E 596963 N E 4.000 104.30 2400.00 26.000 6.943 2275.27 2377.92 143.90 N ~152\E 596.9671.86 N 480733.89 E 4.000 144.97 2500.00 30.000 6.943 2363.55 2466.20 190.50 23.20 6 ¡ª~69718.44 N 480739.69 E 4.000 191.90 2600.00 34.000 6.943 2448.33 2550.98 243.09 29,~p EX 5969771.01 N 480746.23 E 4.000 244.89 2700.00 38.000 6.943 2529.22 2631.87 .43 36:71.E 5969829.33 N 480753.48 E 4.000 303.65 2792.20 41.688 6.943 2600.00 43.85 E 5969887.94 N 480760.77 E 4.000 362.72 Tabasco 2800.00 42.000 6.943 2605.81 44.48 E 5969893.10 N 480761.42 E 4.000 367.92 2812.04 42.482 6.943 2614.72 45.45 E 5969901.14 N 480762.41 E 4.000 376.01 End Dir, Start Sail @ 42.48° : 2812.04ft MD, 2717.37ft TVD 2900.00 42.482 6.943 52.64 E 5969960.09 N 480769.75 E 0.000 435.42 3000.00 42.482 6.943 60.80 E 5970027.10 N 480778.08 E 0.000 502.95 3100.00 566.30 N 68.96 E 5970094.12 N 480786.42 E 0.000 570.49 3198.86 632.58 N 77.04 E 5970160.38 N 480794.66 E 0.000 637.25 Colville ms 3200.00 633.34 N 77.13 E 5970161.14 N 480794.76 E 0.000 638.02 3300.00 700.38 N 85.29 E 5970228.16 N 480803.09 E 0.000 705.56 3330.86 721.07 N 87.81 E 5970248.84 N 480805.67 E 0.000 726.40 9-5/8" Csg pt ... Begin 6-3/4" e Hole: 3330.86ft MD, 3100.00ft TVD 9 5/8in Casing 6.943 3048.34 3150.99 767.42 N 93.46 E 5970295.18 N 480811.43 E 0.000 773.09 6.943 3122.09 3224.74 834.46 N 101.62 E 5970362.20 N 480819.77 E 0.000 840.63 6.943 3195.84 3298.49 901.50 N 109.79 E 5970429.22 N 480828.10 E 0.000 908.16 6.943 3269.59 3372.24 968.54 N 117.95 E 5970496.24 N 480836.44 E 0.000 975.70 6.943 3343.34 3445.99 1035.58 N 126.11 E 5970563.26 N 480844.77 E 0.000 1043.23 3900.00 42.482 6.943 3417.09 3519.74 1102.62 N 134.28 E 5970630.27 N 480853.11 E 0.000 1110.77 4000.00 42.482 6.943 3490.84 3593.49 1169.66 N 142.44 E 5970697.29 N 480861.45 E 0.000 1178.30 4100.00 42.482 6.943 3564.59 3667.24 1236.70 N 150.61 E 5970764.31 N 480869.78 E 0.000 1245.84 4200.00 42.482 6.943 3638.34 3740.99 1303.74 N 158.77 E 5970831.33 N 480878.12 E 0.000 1313.38 4300.00 42.482 6.943 3712.08 3814.73 1370.78 N 166.93 E 5970898.35 N 480886.46 E 0.000 1380.91 2 March, 2005· 10:07 Page 3 of 8 DrillQuest 3.03.06.008 Kerr-~~Gee Corporation HALLIBURTON W~§!em North Slope, KelT McGee Proposal Report for Two-Bits Exploration - Ataruq #2 (wp05) Revised: 2 March, 2005 Measured True Sub-Sea Vertical Local Coordinates Global Tbogleg Vertical . Depth Incl. Azim. Depth Depth Northings Eastings Northings Rate Section Comment (ft) (ft) (ft) (ft) (ft) (ft} (O/100ft) /:; .'<>,/ 4400.00 42.482 6.943 3785.83 3888.48 1437.82 N 59YQ96$I97 N E 0.000 1448.45 4500.00 42.482 6.943 3859.58 3962.23 1504.86 N ~;º32:39 N 480903.13 E 0.000 1515.98 4600.00 42.482 6.943 3933.33 4035.98 1571.90 71099.41 N 480911.47 E 0.000 1583.52 4700.00 42.482 6.943 4007.08 4109.73 1638.94 5971166.43 N 480919.80 E 0.000 1651.05 4800.00 42.482 6.943 4080.83 4183.48 1705.98 5971233.44 N 480928.14 E 0.000 1718.59 4900.00 42.482 6.943 4154.58 4257.23 1J~f.02 N 215.92 E 5971300.46 N 480936.48 E 0.000 1786.12 5000.00 42.482 6.943 4228.33 4330.98 1840,(}6 N 224.08 E 5971367.48 N 480944.81 E 0.000 1853.66 5100.00 42.482 6.943 4302.08 4404.73 190Z¡,P N 232.25 E 5971434.50 N 480953.15 E 0.000 1921.19 5200.00 42.482 6.943 4375.83 4478.48 1.974:14 N 240.41 E 5971501.52 N 480961.48 E 0.000 1988.73 5300.00 42.482 6.943 4449.58 4652.23 2041.18 N 248.58 E 5971568.54 N 480969.82 E 0.000 2056.26 5400.00 42.482 4625.98 2108.22 N 256.74 E 5971635.56 N 480978.16 E 0.000 2123.80 5500.00 42.482 46'99.73 2175.26 N 264.90 E 5971702.58 N 480986.49 E 0.000 2191.33 5600.00 42.482 4773.48 2242.30 N 273.07 E 5971769.59 N 480994.83 E 0.000 2258.87 5700.00 42.482 4847.23 2309.34 N 281.23 E 5971836.61 N 481003.17 E 0.000 2326.41 5741.25 42.482 4877.65 2337.00 N 284.60 E 5971864.26 N 481006.61 E 0.000 2354.27 Target @ 1860' FSL & 1550' FE Sec. 5-T11N-R8E: 5741.25ft M. 4877.65ft TVD Top Tarn ss Ataruq #2 Target, 100.00 Radiu: Current Target 6.943 4818.33 4920.98 2376.38 N 289.40 E 5971903.63 N 481011.50 E 0.000 2393.94 6.943 4892.08 4994.73 2443.42 N 297.56 E 5971970.65 N 481019.84 E 0.000 2461.48 6000.00 6.943 4965.82 5068.47 2510.46 N 305.72 E 5972037.67 N 481028.18 E 0.000 2529.01 6100.00 6.943 5039.57 5142.22 2577.50 N 313.89 E 5972104.69 N 481036.51 E 0.000 2596.55 6200.00 6.943 5113.32 5215.97 2644.54 N 322.05 E 5972171.71 N 481044.85 E 0.000 2664.08 6249.73 42.482 6.943 5150.00 5252.65 2677.88 N 326.11 E 5972205.04 N 481048.99 E 0.000 2697.67 Moraine ss 6300.00 42.482 6.943 5187.07 5289.72 2711.58 N 330.22 E 5972238.73 N 481053.19 E 0.000 2731.62 6400.00 42.482 6.943 5260.82 5363.47 2778.62 N 338.38 E 5972305.75 N 481061.52 E 0.000 2799.15 6500.00 42.482 6.943 5334.57 5437.22 2845.66 N 346.55 E 5972372.76 N 481069.86 E 0.000 2866.69 6600.00 42.482 6.943 5408.32 5510.97 2912.70 N 354.71 E 5972439.78 N 481078.19 E 0.000 2934.22 2 March, 2005 - 10:07 Page 4 of 8 DrillQuest 3.03.06.008 Measured True Sub-Sea Vertical Local Coordinates Global Depth Incl. Azim. Depth Depth Northings Eastings Northings (ft) (ft) (ft) (ft) (ft) 6700.00 42.482 6.943 5482.07 5584.72 2979.74 N N E 6725.67 42.482 6.943 5501.00 5603.65 2996.95 N N 481088.67 E 6800.00 42.482 6.943 5555.82 5658.47 3046.78 N 481094.87 E 6900.00 42.482 6.943 5629.57 5732.22 3113.82 N 481103.20 E 6969.74 42.482 6.943 5681.00 5783.65 3160.58 5972687.58 N 481109.02 E 7000.00 42.482 6.943 5703.32 5805.97 3180.86 N 387.37 E 5972707.86 N 481111.54 E 7100.00 42.482 6.943 5777.07 5879.72 '3241i~0 N 395.53 E 5972774.88 N 481119.88 E 7198.89 42.482 6.943 5850.00 ~311i~9 N 403.60 E 5972841.15 N 481128.12 E 7200.00 42.482 6.943 5850.82 331,;[95 N 403.69 E 5972841.90 N 481128.21 E 7239.57 42.482 6.943 5880.00 3341 .47 N 406.92 E 5972868.42 N 481131.51 E 7300.00 42.482 3381.99 N 411.86 E 5972908.92 N 481136.55 E 7400.00 42.482 3449.03 N 420.02 E 5972975.93 N 481144.89 E 7500.00 42.482 3516.07 N 428.19 E 5973042.95 N 481153.22 E - 7537.88 42.482 3541 .46 N 431.28 E 5973068.34 N 481156.38 E Kerr-McGee Corporation North Slope, Kerr McGee HALLIBURTON Proposal Report for Two-Bits Exploration - Ataruq #2 (wp05) Revised: 2 March, 2005 Vertical . Section Comment 0.000 3001.76 0.000 3019.09 Top HRZ 0.000 3069.29 0.000 3136.83 0.000 3183.93 Base HRZ 0.000 3204.36 0.000 3271.90 0.000 3338.69 Top Kup C ss 0.000 3339.44 0.000 3366.16 LCU / Kup A ss 0.000 3406.97 0.000 3474.51 0.000 3542.04 0.000 3567.62 Proposed Total Depth: 7537.88 MD. 6202.65ft TVD . stated. Directions and coordinates are relative to True North. :- 102.65' MSL. Northings and Eastings are relative to 47TFNL, 1834.6'FEL. s aråJrelative to NAD27 Alaska State Planes, Zone 4. egrees per 100 feet (US Survey). n is from 47TFNL, 1834.6'FEL and calculated along an Azimuth of 6.950° (True). Based upon Minimum Curvature type calculations, at a Measured Depth of 7537.88ft., The Bottom Hole Displacement is 3567.62ft., in the Direction of 6.943° (True). The Along Hole Displacement is 3567.62ft. The Total Accumulated Dogleg is 42.482° The Planned Tortuosity is 1.080°/1 OOfl. The Directional Difficulty Index is 5.0. 2 March, 2005· 10:07 Page 5 of 8 Dri/lQuest 3.03.06.008 HALLIBURTON Kerr-McGee Corporation i Wè¡;tem North Slope, Kerr McGee Proposal Report for Two-Bits Exploration - Ataruq #2 (wp05) Revised: 2 March, 2005 Comments Measured Depth (ft) 0.00 1750.00 2812.04 3330.86 5741.25 7537.88 Station Coordinates TVD Northings Eastings (ft) (ft) (ft) 0.00 1750.00 2717.37 3100.00 4877.65 0.00 E 0.00 E 45.45 E 87.81 E 284.60 E 431.28 e . 0.00 N 0.00 N 373.25 N 721.07 N 2337.00 N 6202.65 $HL (47"; (~~gin Dir . ......00/100fl in 12-1/4" Hole: 1750.00fl MD, 1750.00fl TVD E;!1c! Dir, StadSail @ 42.48° : 2812.04f1 MD, 2717.37f1 TVD 9-9xa" Csg Pt... Begin 6-3/4" Hole: 3330.86f1 MD, 3100.00fl TVD T¡\rget @ 1860' FSL & 1550' FEL, Sec. 5-T11N-R8E : 5741.25f1 MD, 4877.65f1 TVD Proposed Total Depth: 7537.88f1 MD, 6202.65f1 TVD Formation To"s Formati on Profile Penetration Poi n t . (B~low W Measured Vertical Sub-Sea Sub-S':. Depth Depth Depth Northings Eastings Formation Name (ft)~( ... (ft) (ft) (ft) (ft) (ft) 1350. 1452.65 1452.65 1350.00 0.00 N 0.00 E Base Permafrost 2600. 359.853 2792.20 2702.65 2600.00 360.06 N 43.85 E Tabasco 2900. 0 359.853 3198.86 3002.65 2900.00 632.58 N 77.04 E Colville ms 4775.00 359.853 5741.25 4877.65 4775.00 2337.00 N 284.60 E Top Tarn ss 5150.00 359.853 6249.73 5252.65 5150.00 2677.88 N 326.11 E Moraine ss 5501.00 0.000 359.853 6725.67 5603.65 5501.00 2996.95 N 364.97 E Top HRZ 5681.00 0.000 359.853 6969.74 5783.65 5681.00 3160.58 N 384.90 E Base HRZ 5850.00 0.000 359.853 7198.89 5952.65 5850.00 3314.20 N 403.60 E Top Kup C ss 5880.00 0.000 359.853 7239.57 5982.65 5880.00 3341.47 N 406.92 E LCU / Kup A ss 2 March, 2005· 10:07 3541.46 N Page 6 of 8 DrillQuest 3.03.06.008 HALLIBURTON Kerr-!}'IcGee Corporation .. W~~tem North Slope, Kerr McGee Proposal Report for Two-Bits Exploration - Ataruq #2 (wp05) Revised: 2 March, 2005 Casinø details From Measured Vertical Depth Depth (ft) (ft) To Measured Vertical Depth Depth (ft) (ft) <Surface> <Surface> 3330.86 3100.00 Tarøets associated with this welløath Target Name 2 March, 2005 - 10:07 Casing Detail Target Entry Coordinates TVD Northings Eastings (ft) (ft) (ft) . Target Target Shape Type Mean Sea Level/Global Coordinates: Geographical Coordinates: Target Radius: 4877.65 2337.00 N 284.60 E Circle 4775.00 5971864.26 N 481006.61 E 70020' 03.4680" N 150009' 14.6968" W 100.00fl Page 7 of 8 Current Target . DrillQuest 3.03.06.008 North for Two-Bits Exploration - Ataruq Coordinate System is NAD27 Alaska State Planes, Zone 4, US Foot Source: Snyder, J.P., 1987, Map Projections - A Working Manual Datum is North American Datum of 1927 (US48, AK, HI, and Canada) Spheroid is Clarke - 1866 Equatorial Radius: 6378206.400m. Polar Radius: 6356583.800m. Inverse Flattening: 294.978698213901 Projection method is Transverse Mercator or Gauss Kruger Projection Central Meridian is -150.000° Longitude Origin: 0.000° Latitude Origin: 54.000" False Easting: 152400.00m False Northing: O.OOm Scale Reduction: 0.99990000 Grid Coordinates of Well: 5969528.00 Geographical Coordinates of Surface Elevation of Well: 10 Grid Convergence at S Magnetic cGee Corporation North Slope, McGee Grid North True North Magnetic Model: BGGM2004 Date: 02-Mar-05 Declination: +24.117 Magnetic North Hole Direction 2005 . Page DrillQuest 3.lJ3.0fW08 . I Halliburton BAROID . Kerr McGee ~ IE_MCBEE CI1IfIIOIlATIIJII Name (Printed) Originator Dave Soquet Reviewed by Dave Higbie Customer Approval Skip Coyner Version No: 2.0 Ataruq #2, v2.0 ! BAR 0 J Ð Ataruq #2 Baroid Mud Program Halliburton Baroid Signature Date: March 5th, 2005 Mud Program I Date March 5th, 2005 3/5/05 . 1 Halliburton BAROID . Kerr McGee Mud Program I Ataruq #2 Mud Program General Discussion This exploration well will be drilled near the West Sak 18 gravel pad ±4 miles north-northwest of KRU's 2M Pad. The 12-1/4" surface hole will be drilled vertically to the KOP at 1750' MDITVD. The inclination will then be built at 4° 1100' to 42.5°. This inclination will be held to casing point at ±3330' MD (3100' TVD), where 9 5/8" casing will be set and cemented. Then, an 8-112" hole will be drilled holding 42.5° to the proposed TMD of 7538' MD (6202' TVD). An inhibitve KCl/Polymer / mud will be used to drill the 12-1/4" surface hole of the well. An ENVIROMUL mineral oil based mud system will be used to drill the 8-1/2" production hole. As a general drilling fluids plan, spud the well with inhibited 9.0 ppg 10% KCIIPolymer mud. The mud weight will be maintained between 9.0-10.0 ppg mud weight (solids control efficiency a factor) to the surface hole TD unless hole conditions dictate otherwise. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity for efficient hole cleaning. This spud mud is formulated with mechanisms to provide effective wellbore stabilization and to reduce drilling waste, Le., ionic inhibition (KCI) and polymer encapsulation (PHPA). Below the surface shoe, the use of recycled ENVIROMUL mud from the Tuvaaq State #1 and Nikaitchuq #3 wells is suggested. Prior to drilling this interval, a certain amount of treatment (Le. centrifuging, mineral oil additions) will be required to condition the mud to meet the specifications of the well. The mud weight for this interval of the well will range from 9.0 ppg at drill-out of the surface casing to 10.8 ppg by the top of the HRZ. The weight will be gradually increased to 11.3 ppg by the top of the Kuparuk C. The Kuparuk C is over-pressured due to injection and a minimum of 11.3 ppg probably be necessary. Special Considerations 1. Waste minimization is critical to the success of this well. 2. Maintain a sufficient quantity of Driltreat (lecithin) to accomplish a 2 ppb treatment in the event gas hydrates are noted. 3. Lime and zinc carbonate should be on location for H2S contingency (@1 pallet No Sulf and 2 pallets lime). 4. Maintain an adequate barite supply (and other necessary products) to increase the mud weight of the current circulating volume by 1.5 ppg at any time (@1600 sxs barite on location at all times). 5. Due to the remote nature of this location, maintain an adequate supply of LCM and the other mud additives, which may be required to support this drilling program. 6. The Tabasco formation (if present) is possibly depleted and volumes must be monitored carefully to detect losses. Also, LCM should be strung in while drilling this formation to minimize losses and the potential for differential sticking. The Tarn formation may also be depleted and similar measure should be taken while drilling it. Well Specifics: Casing Program 12-1/4" hole (9 5/8" casing) 8-112" hole (no casing) MD 3330 7538 rvD 3100 6202 Footaae 3300 4208 Ataruq #2, v2.0 2 3/5/05 . . 1 Halliburton BAROID Kerr McGee Mud Program Formation Tops/Casina Proaram TMD rvD Comments Mud Wt Spud 0' 0' 9.0 ppg density 9.0 B/Permafrost 1453' 1453' 9.0-10.0 Tabasco 2792' 2703' String in LCM 9.0-10.0 Colville 3199' 3002' 9.0-10.0 9-5/8" casing point 3300' 3100' Condition for casing 9.2-9.6 Tarn 5741' 4878' 9.0-9.6 Moraine 6250' 5253' 9.0-9.6 Top HRZ 6726' 5604' Weight up 10.8 Kuparuk C 7199' 5953' Over-pressured 11.0-11.5-' LCU/Kuparuk A 7240' 5983' TD 7538' 6203' Surface Hole Mud Properties: (12-1/4" Hole, 9-5/8" Casing at 3,330' MD) Mud Properties Density Viscosity YP PV 10 S. Gel API FL Initial 9.0-9.3 80-120 35-45 13-21 10-15 <15 Final 9.0 - 10.0 50 - 80 15 - 30 15 - 23 10 -15 6-8 Surface Interval The surface interval of this well will be drilled with a 10% KCI/Polymer mud as formulated below: 9.0 PPQ Formulation Fresh Water KCI EZ Mud DP PAC-L/R Barazan-D KOH Aldacide-G Baroid Baracor 700 Barascav D .95 bbl 37 ppb .75 ppb .5 ppb 1-2 ppb .1 ppb .2 ppb o 1.0 ppb .5 ppb (ionic inhibition/50.5K ppm chlorides) (polymer encapsulation, added at rig) (API filtrate of 6-12 cc's) (as required for an initial 35 YP) (pH = 8.5-9) (X-Cide 207 for rig maintenance) (as needed) (corrosion inhibitor) (to be added at rig) Spud the well with maximum flow rates (600-1000 gpm assuming 12 ~" hole w/4" drill pipe) to ensure good cuttings transport. Target an initial YP in the 35 range then adjust as dictated by the actual hole cleaning requirements of the well. Reduce viscosity as allowed (if possible, TD the surface with a -20-25 YP). However, if hole cleaning appears to be inadequate, do not hesitate to quickly raise the viscosity as required. Polymer viscosity in the form of Barazan-D additions should be utilized to provide rheological support as needed. Utilize high viscosity sweeps to supplement the hole cleaning capabilities of the system. Barolift sweeps (.25 ppb Barolift in base mud) can also be utilized to minimize viscosity build up. Ataruq #2, v2.0 3 3/5/05 . I Halliburton BAROID . Kerr McGee Mud Program With an initial mud density of 9.0 ppg, please note the other issues of concern as listed below: 1. Make all members of the drilling team aware of the potential for gas hydrates. 2. A mud weight increase is not currently programmed for drilling the gas hydrate interval (below the B/Permafrost) of the well, if encountered. 3. If gas hydrates are noted, treat the system with Driltreat (Lecithin) and Dril-N-Slide. Some de-foamer additions may also be necessary to help the gas break out. 4. Maintain the mud as cool as possible (under 60°F if possible). Efforts to keep the fluid cool include mudding up with cold water and diluting the mud with cold water. 5. Additions of EZ Mud DP should not be made in the initial formulation, as previous wells have encountered serious screen blinding. Additions should be made at the rig as the mud shears to a target concentration of 0.75 -1.0 ppb. The Baroid mud plant in Prudhoe Bay can be utilized to supply the initial volume of fluid for the spud. Make every effort to maintain the system as clean as possible through the normal dilution process and maximization of solids control equipment application. Mud maintenance issues for this interval of the well are as follows: 1. If possible, use pre-mixed KCI water to maintain volume while drilling ahead. The density of the KCI solution should be based upon mud weight requirements at any given depth. 2. Use PAC's/Dextrid for API filtration control. Target 10-15 cc's initially, dropping the fluid loss to the 6 cc range prior to running the surface casing. 3. Hold the pH in the 8.5-9.5 range with KOH. 4. By material balance, maintain the EZ Mud DP in the. 75-1.0 ppb range. 5. Control drill based upon the ability of the surface system to process the drilling mud. 6. Daily additions of Aldacide G or X-Cide 207 are needed to control bacterial action. 7. Corrosion inhibitors should be used with this mud system. 8. Keep MBT as low as possible (generally <11 ppb). Heavy amounts of clay may be present below the permafrost that could require additions of ConDet and/or Dril-N-Slide to reduce BHA balling and screen blinding. Sweeping the hole prior to the short trip at TD and again prior to coming out of the hole to run the surface casing is recommended. If possible (keeping waste minimization in mind), reduce the fluid's rheology to <20 YP after the casing is on bottom prior to starting the cement job. 12-1/4" Maximum Acceptable ROP in fph at Specified GPM and RPM GPM-+ 500 600 700 100 rpm 73 84 98 120 rpm 97 119 131 Baroid's recommended flowrate for this interval is 700 gpm to maximize hole cleaning at these penetration rates. RPM's have a major effect on hole cleaning, particularly in the build section of the hole. Maximize RPMs at all times. Ataruq #2, v2.0 4 3/5/05 . I Halliburton BAROID . Kerr McGee Mud Program Production Hole Mud Properties: (8-1/2" Hole to 7538' MD) / Mud Type: Enviromul System [L VT200 MOBM] Mud Properties: Density PV YP ES HTHP WPS OIW Initial 9.0-9.4 10-20 9-18 800-1100 <6 250-300K 80/20 T/HRZ-TD 10.8-11.5 10-32 9-18 800-1100 <5 250-300K 80/20 . Additional mud weight may be required tripping and logging purposes. Production Interval Mud Type: 1. Mud weight: 2. Rheology: 3. Other issues: System Formulation Product LVT-200 EZ MUL NT INVERMUL GEL TONE V Lime DURATONE Water CaCI2 BAROID Concentration 0.713 bbl 4 ppb 4 ppb 6 ppb 5 ppb 4 ppb 0.182 bbl 19.9 ppb 62 ppb (to 9.0 ppg mud wt) 9.0 ppg ENVIROMUL System. Maintain the density at 9.0-9.4 ppg, weight up t010.8 ppg by the T/HRZ, then gradually increase the mud weight to ~11.3 ppg by the Kuparuk C; use solids control and whole mud dilution. Increase density as required for hole stability. Maximize solids control usage. Maintain a YP between 9 and 18. Pump high viscosity or Barolift sweeps throughout the interval as needed, particularly prior to POH for logging. Optimized mud rheology and flow rate will be the primary mechanisms for achieving hole cleaning in this deviated well bore. Maximize pipe rotation (ideally ~ 100 RPM). The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses and differential sticking. By the T/HRZ, reduce the HTHP to < 5 cc 30 min with DURA TONE HT treatments. Operations Summary: If operations allow, the plan is to bump the plug on the 9 5/8" casing with the ENVIROMUL system. Approximately 250 bbls of oil mud will be required to bump the plug and 500 bbls in the pits. Used mud will be available, and should be reconditioned and displaced into the wellbore. Ataruq #2, v2.0 5 3/5/05 . I Halliburton BAROID . Kerr McGee Mud Program I Prepare the pit system for the ENVIROMUL as follows: · Clean pits, solids control equipment, all lines and pumps. · Flush all lines with a small volume of oil and discard. · Disconnect all water lines to the pit area and rig floor. · Check all steam fittings in pit room for leaks and repair as needed. If operations do not facilitate bumping the plug with ENVIROMUL, displace the well to the ENVIROMUL system designated for this interval of the well while drilling out. Pump the following spacers ahead of the oil mud: Spacer Formulations: · Pump 50 bbls of >40 YP fresh water or seawater Barazan D+ spacer. · 50 barrels of the OBM treated with GEL TONE to a YP > 40 (app. 4-6 sx). Weight this pill to 2 ppg over the OBM weight. · Follow with ENVIROMUL mud system. Displacement procedure: · Monitor pump strokes to obtain correct displacement. · Maintain maximum pump rates. · Have the bit on bottom as the MOMB exits the bit. · Reciprocate the drill string by one joint every 15 minutes · Rotate the pipe as rapidly as allowed during the actual displacement. · Do not shut down during the displacement. · Use an E.S. meter at the flow line to determine when the fluid is water free enough to start taking the returns back into the system. An ES of 300-500 should be sufficient to indicate when displacement is complete. A retort should also be run at this time to confirm fluid quality. · Clean possum belly and any troughs which were used to transport water base fluid. Maintenance: 1. Additions of Geltone V / RM-63 will maintain/modify the system rheology to a YP between 9 and 18 to provide effective hole cleaning while controlling ECD and surge/swab pressures. Run the rheology checks at 120°F to TD. 2. OMC 2 and OMC 42 will be available to condition (thin) the mud as required; however, caution should be used when using these oil mud thinners (particularly the OMC-2) to avoid over-thinning the system. 3. Drill this interval with a tight DURA TONE HT filtration mechanism « 6 cc/30 min @ 2000 F to top HRZ then <5cc/30 min @ 2000 to TD). 4. For formation bridging/LCM, graded calcium carbonate (Baracarb(s)), cellulose fiber material (Barofibre) and SteelSeal are available. Baracarb 50 and I or Micatex should be strung into the system at 10-15 sx/hr when drilling the Tabasco and Tarn as they may be under-pressured. 5. The electrical stability of the mud should be run in the 800-1100 volt range with INVERMUL and EZ MUL as the primary and secondary emulsifiers. DRIL TREAT will be available as an effective wetting agent, when needed for weight up. Ataruq #2, v2.0 6 3/5/05 . 1 Halliburton BAROID . Kerr McGee Mud Program 6. Maintain the water phase salinity between 250,000 - 300,000 mg/l range with sack calcium chloride. This level of salinity will provide an effective mechanism for good wellbore stabilization. 7. The excess lime content will be maintained in the 3 ppb range to provide an effective reserve alkalinity source and to improve the emulsion stability of the mud system. 8. The initial oil:water ratio will be 80:20. However if the O/W ratio is higher in any used mud which mav be available do not adjust it down. From there, the system will be maintained with base oil allowing the ratio to drift to the 90: 1 0 range by the top Kuparuk. This will help reduce the cost of the original fluid and then help control rheology/ECD's with a higher ratio in the lower depths of the well. 9. A spike fluid should be used to raise the mud weight to 10.8 ppg or greater prior to drilling the HRZ. SUSPENTONE will need to be added at 2 ppb to mitigate barite sag and DRIL TREAT will need to be added at 1 ppb to ensure oil-wet barite. The mud weight should be gradually increased to 11.3 ppg prior to cutting the Kuparuk C. Suggested Drilling Parameters Pump rate and drill string rotation should be optimized through the real-time use of the DFG software for the actual ROP while drilling. The table below highlights the maximum ROP recommendations above which hole cleaning will become an issue. Flowrates over 400 GPM cause a sharp increase in ECD. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM-+ 200 300 400 100 rpm 108 168 232 120 rpm 139 209 287 Risks and Continaencies for the well: Lost Circulation: Preventing the initiation of lost returns should be a primary goal of the drilling fluid in the well. To that end the rheology of the system has been reduced while still providing ample hole cleaning. Maintaining a low ECD while circulating, and eliminating high pressure spikes while tripping, will both go a long ways toward reducing the risk of lost returns. Well bore Instability: The possibility for sloughing gravel exists in the surface hole section. Should this occur, immediately increase the rheology of the mud to accommodate hole cleaning. Also, maintaining the mud as cool as possible will minimize sloughing and washout. Stuck pipe: Two forms of stuck pipe are possible. One is from hole pack-off as related to poor hole cleaning, i.e. cuttings bed. Stuck pipe can occur if a cuttings bed forms, or if the well bore exhibits severe instability. The best cure is to pro-actively prevent the occurrence of either scenario in the first place, and if they do occur, correct drilling practices must be employed. If pulling up into a tight spot, do not jar up further, but attempt to get below the problem. Sackreaming a large cuttings bed is an invitation to packing off and resulting stuck pipe, and backreaming must be done with care and only when necessary. If stuck pipe occurs across a sand and there are indications of differential sticking, there are drilling fluid solutions. If possible, reducing the fluid density by a minimum of 0.5 ppg may provide some relief. Ataruq #2, v2.0 7 3/5/05 . 1 Halliburton BAROID . Kerr McGee Mud Program I Corrosion Mitigation Sarascav D and Saracor 700 will be run in the water base fluid system to mitigate corrosion. Daily sulfite and phosphonate checks will be run to monitor this program. Sulfite levels should be maintained at 200-300 ppm and phosphonate levels between 600-800 ppm. Lubrication: The need for lubricants is not anticipated in this well. Should the need arise, it is recommended to add 2% of the lube cocktail (0.5% SDF-263, 1% EZ Glide or Torq Trim II, and .5% EP Mudlube) to provide adequate but minimal lubricant support. This concentration can be increased to 5% in 1 % increments if all other remedial actions have been taken (sweeps, etc.). Additions of Sarofibre (2-3 ppb) while drilling can also reduce torque and drag. This method was used on the Witch Farm ERD wells. Hole Cleaning: Maintaining the programmed flow properties is essential to successful completion of this well. Any indication of a failure to keep the annulus clean of excess cuttings (PWD increases, drag, torque, partial packing off) should be countered by increasing the circulation time on subsequent connections and prior to trips. Pipe rotation should also be used in conjunction with the pumping of high viscosity sweeps in the pay sands. The returns at surface of all pills should be monitored at the shakers and documented to gauge their effectiveness. When circulating bottoms up prior to POH, it is advisable to pull one stand every half hour to reduce the hole washout effects of circulating over one short interval. Long circulation times should be avoided if the bit/SHA are in one of the mudstone/clay sections. Pipe should be kept moving at all times during this circulation period. HiQh speed pipe rotation is the most critical factor for hole cleaninQ. ROP rates above the recommended levels or with no (sliding) or low rpm will require an increased frequency of the following remedial hole cleaning practices: · wiper trips · back reaming · extended periods of circulation (with maximum pipe rpm, targeting?: 100 rpm) · hole cleaning sweeps (change flow regime of base mud by using fibers, density or rheology for carrying capacity) · connection practices - employing extended gpm, rpm and back reaming during the connection Ataruq #2, v2.0 8 3/5/05 · . @ KERR-MCGEE CORPORATION March ih, 2005 Ataruq #2 Kerr McGee Oil & Gas Corporation Abnormal Pressure Analysis Attached is a graphical representation of the known offset fonnation pressures and extrapolations/predictions made based upon that data. This well, Ataruq #2, is located just west of the KRU near the West Sak 18 location. Ataruq #2 is due west of the Tabasco field, and lies between Tarn and Palm. The pressure gradients used to extrapolate/predict fonnation pressures in Ataruq #2 came from nearby field data. As always, gas hydrates are of concern and precautions will be taken - especially when drilling below the pennafrost as seen at Tarn. The predicted pressures in potential hydrocarbon-bearing fonnations were derived in the following manner using predicted TVD's and known gradients: Formation Tops MD rvD Pore Pressure EMW (ft) (ft) (psi) (Ib/gal) T/Tabasco 2,792' 2,703' 900 6.40 TlTarn 5,741' 4,878' 2,169 8.55 T/Moraine 6,250' 5,253' 2,335 8.55 T/HRZ 6,726' 5,604' 2,914 10.00 T/KuparukC 7,199' 5,953' 3,450 11.15 T/Kuparuk A 7,240' 5,983' 3,470 11.15 » Due to potential inaccuracies with the seismic velocity, these formation tops may change ,.- The Ataruq #2 will be drilled using experience gained while drilling at Palm, which / includes abnonnal pressure in the Kuparuk "C" with nonnal pressure in the Moraine above. Furthennore, the Tabasco sand [if it exists in this location] mayor may not be depleted as is seen within the Tabasco field located a few miles to the east. d;/g,tJr--- ASRC Energy Services 3900 C Street Suite 702, Rm 744 Anchorage, AK 99503 (907)-339-6269 Predicted Formation Pressures ~ " " -0 o 200 400 600 800 1000 1200 1400 1600 1600 2000 2200 2400 2600 2800 3000 3200 3400 3600 3800 4000 4200 4400 Pressure (Subsurface) -1000 -2500 -3000 -6000 -6500 -7000 -7500 -8000 . . Shallow Drilling Hazards Evaluation Kerr McGee Ataruq #1 and #2 Locations Alaska State Lease ADL 390502 Colville Delta Area, North Slope, Alaska Summary Pursuant to 20AAC 25.061, available data from proximal wells (Sinclair Colville #1, Atlantic Richfield West Sak #18, Kuparuk River Unit 2T pad) and pertinent geophysical data have been evaluated for evidence of any shallow to intermediate depth drilling hazards. Mudlogs and wireline logs from these wells indicate insignificant amounts of natural gas /' hydrates and/or free gas in sands and gravels of the Ugnu Formation associated with or immediately below ice in the permafrost wedge. Either of these wells may encounter moderately / low gravity, low GOR oil in the Tabasco Sandstone. None ofthese conditions are considered pit of the realm of normal drilling conditions. Additionally, available seismic data does not define ./ any anomalous shallow hazard zones. Location The Ataruq Prospect is located immediately east of the southwestern lobe of Kuparuk River Unit, situated on the low-relief Arctic coastal plaiñ east of the Colville River Delta (Fig. 1; location map). Both Ataruq wells will be drilled from an ice pad. The proposed surface location is 477' FNL and 1834.6' FEL of Section 8, TIIN, R8E of the Umiat Meridian. The bottom hole / location of Ataruq #2 is projected to be 3064' FSL, 1393' FEL, Sec. 5, TllN, R8E. This well . will be drilled to a maximum depth into the Miluveach Formation. ' Geology: Local Stratigraphy Ataruq #1 and #2 will penetrate strata ranging from the surficial sands and gravels of the Gubik Formation, and reach total depth into the uppermost beds of the Jurassic Kingak Shale" (Fig.2; wellbore diagram). Reservoirs that may contain significant hydrocarbons include several Cretaceous-age intervals including the Tabasco and Torok sandstones, and the underlying Kuparuk Formation (Fig. 3: strat column). The Gubik Formation, as well as a superficial covering of Quaternary sediments, are comprised of 100 to 200' of inter-bedded sand, gravel, mud and silt, and some low-grade coal deposited in marine and marginal marine settings. The Gubik Formation unconformably overlies the Sagavanirktok Formation (Late Cretaceous through Eocene). The Sagavanirktok Formation consists of complexly inter-bedded sand, shale, and conglomerate deposited in multiple cycles of marine and non-marine strata - deposited in deltaic to coastal plain environments. These sediments are all unconsolidated to slightly compacted. The Sagavanirktok is projected to be 600-800' thick in the vicinity of the Ataruq well. . . The Late Cretaceous Colville Group is comprised (from younger to older) of the Ugnu Formation, Schrader Bluff Formation (also known as the West Sak Formation), and the Colville Mudstone. The Colville Group represents an overall upward shallowing, progradational sedimentary package deposited in environments ranging from open marine basinal to fluvial setting. Ataruq #1 and #2 wells will penetrate 600 to 700' ofUgnu Formation sediments, mostly comprised of unconsolidated to slightly cemented sand, gravel and muds. The Ugnu Formation overlies 450-550' of upward coarsening cycles comprised of inter-bedded sand, silt and mud of the Schrader Bluff Formation. Note that many of the sands developed in the U gnu and Schrader Bluff formations contain significant reserves of heavy oil currently being exploited in both the Milne Point and Kuparuk fields. The Tabasco Sandstone, an informal member of the Schrader Bluff Formation, is locally developed in southwestern Kuparuk Field. This areally restricted lenticular sandstone body, encased in the Colville Mudstone, contains significant reserves of low gravity oil (16 to 18°). /' The Tabasco Sandstone, where present, will be encountered 500 to 600' below the basal sandstones of the lower Schrader Bluff Formation. The Colville Mudstone is approximately 3000' thick in the Ataruq Prospect area. This thick sedimentary package consists of inter-bedded shale and siltstone. The Tam Sandstone ~ occurs at the base of the Colville Mudstone, and at the top of the Torok Formation. The Tam Sandstone is the main hydrocarbon reservoir at the Tam Field located 6 miles south of the Ataruq location. This unit, as well as the Torok Formation, is comprised of complexly interbedded, lenticular fine-grained sandstone, siltstone and shale. Underlying the Torok is the radioactive shale known as the HRZ (highly radioactive zone) and the silty shales of the Kalubik Formation. The Kalubik overlies the Kuparuk Formation. Both Ataruq boreholes should encounter potentially oil productive sandstones in the Kuparuk C and Kuparuk A members. These wildcat wells will reach total depth in siltstones and shales of the Miluveach Formation. Geophysics The 3D seismic grid (WBA Survey - 1997) covering the Ataruq area was analyzed for potential shallow and intermediate depth drilling hazards (Fig. 4). This seismic data was then compared to wireline logs, mud logs and scout information from uphole sections in wellbores in the immediate area. There is no geophysical evidence such as amplitude anomalies or velocity ./ sag suggesting the proposed Ataruq #1 and #2 wells will encounter any form of shallow entrapped natural gas, or intersect any conductive faults. . . Potential Shallow Drilling Hazards Permafrost The Ataruq #1 surface location is situated on the low-relief Arctic coastal plain to the east of the Colville River Delta. This location is approximately one mile west of the southwestern limit of the Kuparuk River Unit. The Atlantic Richfield West Sak #18 wildcat well was drilled approximately 1 mile southeast of the proposed Ataruq #1 surface location. In this well the base of the permafrost is recognized at 1420' TVD (defined using resistivity and sonic logs). We r anticipate encountering the base of the permafrost between 1400' and 1550' TVD in the Ataruq #1 well, similar to the West Sak #18 and other nearby wells in the Kuparuk Field. Shallow Hydrocarbon Accumulations There is no evidence of any significant accumulations of gas hydrates in the shallow ./ sands of the Ataruq area. Mudlogs from both the Atlantic Richfield West Sak #18 and Sinclair Colvlle #1 wells showed the presence of minor gas hydrates immediately below the permafrost between 1800-2200' TVD (2-3X over background on hotwire). There are some oil shows in the Schrader Bluff/West Sak sandstones. These zones are not considered to be prospective. The Tabasco Sandstone reservoir may be encountered in either of the Ataruq wells. This reservoir, if unaffected by nearby oil production in the Kuparuk River Unit, will be at or near normal pressure gradient. However, there is a reasonable chance that the reservoir pressure has ./ dropped to less than 1000 psi due to production. Anomalous Geopressured Zones Data from offset wells including mudlogs, scout tickets, and data from the Alaska Oil and Gas Conservation Commission indicates that the Ataruq #1 borehole should encounter "normally" pressured strata (from youngest to oldest) in the Sagavanirktok, Ugnu, and Schrader / Bluff formations. The Tabasco Sandstone, if present, is likely to be significantly underpressured due to depletion - of the reservoir. State reports indicate that the original reservoir pressure in the Tabasco Sandstone was 1512 psi, as compare to a current (2003) reservoir pressure of 1000 psi. Therefore, there is a chance for differential sticking if the Tabasco Sandstone is thick, well / developed, and pressure depleted. Sandstone reservoirs penetrated in the Torok Formation (including the Tam Sandstone) are likely to be normally pressured. Even though a significant amount of oil has been produced from the Tam Sandstone at the Tam Field, reservoir pressure has been maintained at the original level by the field operators. Kuparuk Formation pressure gradient. pressure is 3450 psi. observed analogous setting to the 500 psi over projected Kuparuk Field. reservoirs in the Ataruq reservoir pressure at Kuparuk was "supercharging" due to injection at Kuparuk Palm to pressures when drilled were due to the enhanced Conclusions No drilling hazards oil are anticipated in gas hydrates are associated by prudent drilling practices. intervals are not considered to #1 T11N Figure 1 - Location Map _ Surf I Rig RKB = 102 ft I Pad 72 ft L·80 Conductor 1000' 12-1/4" Hole 1452' KOP at 1750': Build at 4° 1100 ft _ 2000' _ 3000' ,40#, " 3331' MD 13100' TVD " " " " " " " " 42.5° " " " " " " " " " " " " " " " " " " " " " " " " " -. _. -..... -. -. -. -... -... -. ~'- Tarn at 4877' TV!) -... _... -.-... -... _.... " _ 5000' " " 8-1/2" Hole " " " " " ..-.-. -. _. ~ ... -......... -.-.-. 'Kuparuk C at 5953' TVD _. -... _. _.... .-....... -. - .-. -. ..-. -. - " " - 6000' "" " " " " _ 4000' c > I- " 7538' MD 16203' TVD __ 7000' s. Coyner: 3/$/200$ 2 - Wellbore Diagram East Colville Delta (Ataruq Prospect) Stratigraphic Column 2 AGE MY ~ ROCK MAJOR TYPE SB'IJENCE u ..... o N o Z w U z c i III: !II U III. ..... 0 z N Øi 300 0 iii. W ...i ~ II( ~ A. i z z ::> c . ¡: III: !! Selmlder Bluff w....t Salt If; = o !II U ~ !II III: u Taba_o 100 Meltwat..rtTarn KupðruitlMi!!1..1"1 Fiord/Palm u ¡:¡; If; = = ., RIFT SEQUENCE Alpi.... LISBURNE GP I..OWat SECWENeE ENDICOTT BASEMENT Figure 3 - Column Figure 4 - Data Outline .. . .-^r" M.~æ':"'f 3-%" EUE §,gøo DIll " MotIfl PtrlNlIn Ft./lIIg ::8 &. ~ J.% Ir: IBOP I..QØØ HI !~ MS"lhctu'" Model PreIlIU" RarIng ;g Jê.ctdD. s.y" IF Lower l<ellv IrOGO psi ~> M.nuf8ctUl'9r Mtx/el PriHUrlt RsNrrg .-Ar' I TESCO J HIUI. 3-% FH Dj.a".jl 5.000 œl M8nultCluI'9r Mod.' 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Adaptor t¡.. 16" Knife Valve - .". - . ;..~~ Nordic Rig #3 Dlverter Schematic . -. X 9 g 10 ~ .--6 L ~ { Ol"lAn ... . ________r..':.____~¡ I ~----------~ Closed ,__4" 4t------------~ ~-l , I I I , , I I ~ ;......... I I , I . , I I Closed! ì Open I I I I __~_._J 1 I , ._:...._....._.~ To 160 gallon I Accumulator 6 From 160 gallon Accumulator 4 5 4 3 r ï. / 2 \., , . . l' I ~ KEY: 1. Drive Pjpe: 13-3/8",68# 2. Casinf;t Head: 13-5/8", 5000 psì Multi-Bowl x 13-3/8" Clamp-on 3. Lower Spool, Quick Connect Bottom )C API Flange Up. 4. Double Studded Adapter or XO spool, If needed. 5. Diverter Spool: API 21-~· - 2.000 wilh 16" $ide outlet. 6. Annular Preventer: 13-5/8" x 5,000 psi, or 21-%" x 2,000 psi. 7. Knife Valve: ANSI 16"-150# RF: The valve opens automatically upon closure of annular preventer. 8. Dlvert.r line: 16" 8. Full O¡)ening Drill String Valve. 5.000 psi rating, manually operated. 10. Full Opet:'ing Drill String Valve, 5,000 psi rating, actuated. Nordic Rig #3 Diverter Schematic . . ~ M';~~:f9' 3-~n EUE ,,,goo Dsl " MotIfl PtflNlure It.rlng :g ~ ,Çœþ 3.% If: 180P s.IØG HI !! Msrnlfscturer Model Pre..ute Rerlng ::g ~ s.y" II Lower Kellv G,oGO pal i> Manuf8t:1/J~r Madel PreHurø Røtlrrg .-^r' TESCQ.J HloICAl,. 3.% FH Du.' 8,. S.DOO DBI MønlAaCl/J~r MOd" PreslWI'I R.llng J. .L 31 .!mI!JI. its. 5.000 _I 7 I AI.nut.dUM' Mødøl pl'fH,(lUrJI Raling ~ ~ ~ ~ w , II Jb!!Jst "SL. Manual LDOk" 1.000 øøl 6 Manufacturer Model Prs'lSure RI!7./ng ~ Þ 0 palftt/'0n 3.1J8" FC 5.0DØ 1181 M,,"vf8Gtul8r Modell Siza PrN8llre RstfrJg 5 Cameron J-11" FC. HCR 5.000 I' M8f1lJfBr;turer Model I Size P1P.IlIIIJÆ stitlg CHOKE LINE VALVES 1'_1 Þ: iii & IS! S ~ 4 Þ ! iii i i -I l.. i J.ba!fE .:II.: 5100_1 e MlJfluføC1lJl'f1r MOdel PIfS8IJrt1 RBling . .. ... ~ &! ~ ff'~ ~ .....¡. Ie'"..... I - c...r- :¡; I ;¡: I ... ..I ~ 3 11 I & i I¡ I¡ [ r 2 KEY: i. Drive Pipe: 13-3/8",68# 2. Casing Head: 13-$/8", 5000 psi Multi-Bowl x 13-3/8" Clamp-on 1. s. DlVerter Spool' . ',< ,- '.- ~: - . - . 4. SI""e Rmn ...., with pipe \'MIS ,. -. 5. DrRIIng SpIMIl, 5000 psi, wI 2 SIde Outtets I B. Double R8m BQP, with pIpe rams on tGp and blind rams on Bottom 7. Annu~rBOP,HydriIGK ty 8. Choke LIne V'IVê. Manual OperatiOn. 3-118" II: 5,000 psi 9. Choke Une V,lve, HycIr8Ulicslly Operated. 3·1/8"" II' S.ooo p!1 10. KIll UrII! V"ve, Manual Open¡tlon, 3-118" x 5.000 psi 11. Blind FlanK~ Nordic Rig #3 13-5/8" X 5,000 psi BOP Schematic , Outlet to Degasser . Outlet to Flow Back Tank . Outlet to Degasser -'L Hydraulic Choke nR / ./ fL ./ /1 I Þ I Manual Choke (Ð '--"Ü Note: All valves and piping 3-1/8" x 5.000 psi unless otherwise indicated Pressure gauges and transducers 2-1/1611 X 5.000 psi Valve mounted on inlet block Inlet from BOP Stack 1J o Co) s::. .- - C")Oas =M: .- E _ fI) œa.G .- s::. a!ou (,t0U) .- C!. ~ "a 11)_ o .e Z )(.- -c = II !!!:E - . C") f ,c . '" , I' PA ýII;OÍœHUN\>I<ED1>OLUi<Š AND Òo tENTs ""........"...".,;,,,..;..¡....,;,"'..;,,...,,.,,,,.,......,..¡..,,,.,.,,..¡,c".....",.., 't ~ ~T_:::c: f-" ~ i r{1 '-"".., ý / t :",..,.-, \'.""'-' ,j'l ""j' i i ~/,.." // '. ; :;:, - '" ~ STATE OF ALASKA i õgJ¿WopOIL & GAS CONSERVATION COMMISION ~ 333 WEST 7TH AVE STE 100 ANCHORAGE, AK 99501 VOID bVE~ $100.00 II- . . b 2 :I :I II- I:. 2 5 2000 5 ? I: :I? II' ? B 2 ? . .,,_ . . . TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/P ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME Alaf-C-é8 #2- PTD# 2D:;~(53C¡ Development Service CHECK WHAT APJ»LIES ADD-ONS (OPTIONS) MULTI LA TERAL (1l API number last two. (2) digits are between 60-69) PILOT (PH) /' / Exploration Stratigraphic "CLUE"· The permit is for a new wellbore segmeDt of existiDg weD,. . Permit No, .' API No. , Production. sbould continue to be reponed as a function' of tbe original API Dumber. stated above. . H OLE In accordance witb' 20 AAC 2S.00S(f), all records, data aDd logs acquired for the pilot bole must be clearly differeDtiated ID botb name (name on permit plus PH) and API Dumber (SO 70/80) from records, data and logs acquired for we)) (name on permit). SPACING EXCEPTION / DRY DITCH SAMPLE Tbe permit is approved subject ·to fuD compliance with 20 AAC 2S..0SS~ Approval to perforate and produce is contingent upon issuance of I! conservation order approviDg a spacing exception. !Companv Name) assumes the liability of auy protest to tbe spacing .~xcep1iou that may occur. AU dry ditcb sample sets submitted to tbe Commission must be in no greater 1baD 30' sample intervals from below tbe permafrost or from wbere samples are fint caught aDd 10' sample hiter:vaJs through target z.ones. Field & Pool Well Name: Ataruq 2 Program _____ Well bore seg PTD#: 2050390 Company KERR-MCGEE OIL & GAS CORP Initial Classrrype GeoArea 890 Unit On/Off Shore On Annular Disposal 1 Pe(ll)it fee attached. . . . . . . . . . . Yes . . . . . . . . . . . . . . . . 2 .Lease.numberapprOPJi<lte . . . . . . Y~s . . Entire well Jails within .A.lJT!strong'sJea.se .A.DL. 390502, which /jes.adj<lcent t.o.theKup<lrulç Riyer.UniL . . 3 .U.nique wellnam~.and OUJlJb.er . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Y~s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 WellJocated ina.d.efinedpool. . . . . . . No . . EJ<ploratory wellJ<lrgeting Jarn.and l:<uparuk.C!A sands.. . . . . . . 5 Well Jocat~d pr.oper .distance. from drilling ul1itbound.al)' Y~s . . WelJ is more. than 500'Jrom. prop~rty line. . . . . . . . . . . . . 6 WellJocat~d proper .distance. from otber welJs. . . . . . . . Yes. . first welUn See, 5J1 m,RSE, N~<lresL wells areKRUpJoducers an.dJnjectors 1-"1/2 to 2 m[lesJo SE aod E.. 7Sutfjcient;:¡crea9-e.ayail<lblelndJilJiogunjL. ...... ....... Y~s ...... ....... .......... 8 Jfdevi<lted, js weJlbore plaUnc)uded . . . . . . . . . . . . . Y~s . . . . .. .. . ., . 90-perator only aff.ected party. . . . . . . . . . Y~s lIJeedQesigoation oLQperator form from ArmsJrç)l)g prior to permitapprOllal. /~c: <>?(~ . .::,-. I Q." Q-S-:.-&1 10 .O-perator bas. appropriate. bond inJorce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Y.es. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Permit can be issued wjtbout conservation order. . . . . . . . . . . . . . . . . . . . . Y~s . . . . . . . . . . . . . . . . . . . . . . . . . . 12 p~(Il)itcan be issued witbout <ld.ministratille.approvaJ . . . . . . . . . . . Yes. . . . . . . . . . . . . . . . 13 Can permit be approved before 15-day wait Yes 14 WellJocat~d within area and.strata .authorized by.lojectioo Order # (puUO# incomm~ots).(for NA . . . . . . . . . . . . . . . . . . . . '3f/?·C';'-15 A)lwelJs.within.1l4.mile.area.ofreyiewid~ot[fied(Forservj~well only). .............. .NA................. ..................................................... 16 Pre-produced injector; dur<lt.ionof pre--productioo less than3 months. (forser:vtce well only) . . NA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 .AS;MP.F-:ïndingof Con.stst.eocy.has been Jssued. forJbis project. . . . . . . . .NA . . . . . . . . . . . . . . . . . . 18 .Cooduct.or stringpJovided . . . . . . . . . . . . . . . . . Y~s . . . . . . . . . . . . . . . . . . . . . 19Surfa~ .casingpJotects aiL known USDWs . . . . . . . . Y~s . . falls wtthin I:<ßU Ule EJ<emptJonBoUl1d.al)'of Dee 1983. 9-5/8" casing wiJI.be seLat 3tOO'TYDand cemented 20CMT vol adeQuateJo circ.ulateoncOl1d.uçtor & SUJf csg . . Yes ..... to .surface,PJotectiog any poteotial fre.sbwater .sources .beoeath. permafrost SfQ . . . . . . . . 21CMT vol adeQuateJo tie-tnJongstring to.surf csg. . . . . . NA . IIJO prQdu.ctioncasiog planned. ~Ian. is topJu.gbackwellbore forsjd.etn;¡c:k, . . . 22 .CMT will cover.aJl koo.wnpro.ductiYe borizons. . . . . Yes. . . .A.l1y.hydroca.rbons will.be isolat~d by plugging program. sJill to.be .apprOlled. 23 .Casiog designs ad.equate for C,.T., B&permafrost . . . . Y~s . . . . . . . . . . . . . . 24 Adequ<ltetank<lgeoJ re.serye pit. . . . . . . . . . . . . Y~s . . . Rig js.e.quipped.witb steeLpjts.. No resel"\le.pjt-planoe.d, AJI waste todjsposal wells. 25 fare-drilL hasa. 10,403 fOJ <lbandonme.nt be~o apPJoved . . . .NA . . . . . . . 26 Adequ;:¡tewellbore separatjo.n-pro-posed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Y~s . . . . . . . IIJO wellbores tn immediate <lrea.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Jfdiverter.required, does jLmeet reguJatiol1s. . . . . . . . . . . . . . . Y~s . . . . . . . Appr Date 28DJilliogfJuidpro9-ramschematic.&ec¡.uipJistadequ<lte....... .... Y~s ..M<lximumexpectedformationpressure,up.toj1.2EMWin.KupaJuk PJamledMWupt01t5ppg, TEM 3/14/2005 29 .BOPEs, do they meetreguJation . . . . . . . . . . Yes. . . . . . . . . . . . . . . V.Q1h\ 30 .BOPE.press ratiog ap-propriate;Jestlo.(pu.t psig incommel1ts). . . Y~s. M.A.SF' calcuJatedat 27:95 psi, 35QOp.stPJOposed.and <lppropriate.. . . . . . . . . . . . . . tX"j, '"1{(-\ 31Choke.manifoldçompJiesw/APIR~-5HMay84). ............. Y~s....... ...... ....... ...... . 32 Worlç will occur withoutoper<ltjonshutdown. . . . . . . Y~s ....... . . . . . . . . . . . . . . . . . . 33 Js presence. of H2S gas. probable. . . . . . . Yes. . . . . . . tt2S present in Jabasco production to the south~asL Mud sh.ould preclude /-I2S. on the rj9-. Rig ba.s .sel1orsJalarm. 34 Mecba.nicaLcondit[on of wells within .A.Oß yerified (For. s.ervice welJ onJy). . . NA . . . . . . . . . . . . . . . . . . . Administration Appr Date ~ Engineering - - - - - - ~ - - - - - Geology 35 P~rmit c.an be issued w!o hydrogen sulfide measures. . 36D.ata.pJeseoted on pote.ntial oveJpressurezones. . 37S~tsmic.an<llysis. of sbaJlow gasz.ooes . . . . . . . . . . . . 38 .S~<lbedcOl1djtioo survey.(if off-sh.ore) . . . . . . . . . 39 Contact nam.elphOl1eJorweelçly progressreports [exploratol)' only] · Closest off$etKuparuk produçersin.KRU (j .~- 2 miles away) haye measured between 30a.nd 23Q ppm tt2S. . · "NormaJ"pressure gr.adientexpecteddowo toJop of HHZexçept for tab<lsco sands that may. be. . . . · un.derpressuJed due to. deplet.iQn,HRZ .&. Kuparulç sands may be OlleJpres.sured 500 pst du~ .to offsetilJjection. . · lIJo drillLng ha;:.ard$ .as!iOC. withhydr<ltes or .shallow g<ls haye been id.entjfied in.sei$mic.or well d.ata, . . . . . . . . ToddD.urkee . . .907:-33.9,6.370 . - - - - - - ~ No Y~s. . ..... Y~s. Appr SFD Date 3/14/2005 ~/~ NA. Y~s - - - - - - - - - - - -- Geologic Commissioner: Engineering Commissioner: Date Date: "ìYrs -34;2 ~ s- ~ ~/YL-(.. o o . e . . Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information. information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. Sperry..Sun End of Well Report Ataruq#2 Exploration.. NWiiMilne Point DirectionaliDrllling & MWD/LWDServices I I I I I I I I I I I I I I I I I I I r-a .. un CFUL.L.ING SERVIc:es _>_,.~C_~_ ._~ _,,_.,_.__,. ._ _·_._~__.____n._'~ ~__= End of Well Report Ataraq #2 Kerr McGee April 13,2005 RECEIVED OCT 2 0 2005 Alaska Oíl & Gas Cons. Commission Anchorage I KerrMcGee Ataruq # 2 I Operator KerrMcGee Well Ataruq # 2 I Job Objectives: I Well: Ataruq # 2 I Objectives: Drill, Evaluate, Plug and Abandon with Safety and Spill Prevention as Priority # 1 Geological Objectives: Evaluate the Tam sands> Kuparuk A & C sands. I Summary of Results: I Rig moved over to Ataruq # 2 I Directional Driller arrived on location the following day> BRA arrived the next day and was placed in the shed to strap and make ready. Rig crews were finishing the rig up and prepping the location prior to surface being spud. We did have some problems getting the MWD tools to warm up so that they would communicate> because of the cold pipe shed. We had to steam the MWD and Nuke tools as we picked then up. When the sheds were set> no one placed snow around the shed letting the wind blow in from under the shed, this was because everyone was very busy getting the rig up and running after a 34 mile rig move. I BRA was picked up after drilling enough rat hole, Spud at 02.54 hrs on the 4-4-05, drilling vertical section to 1750' KOP. Ron Handley arrived on location to help in the build section. I Even being 38' otfthe line at KOP> we still manage to get the build section done> Surface was drilled to 3350' MD in last than 30 hrs. Avg. ROP = 141 FPH. Sliding Footage = 850, Rotating Footage = 2284> all BRA and tools worked very well with no down time in the surface section. I PIU BRA # 2 and 7" Sperry drill 718 Lobe 6.0 Stage. Motor with 1.22 degree bend> Drilled from 3350 to 5539' in 15.82 on bottom hrs> the assembly did very well. I After getting drilling under way> found the motor assembly is dropping and turning left slightly perllOO' about .56 to .81 degrees perl 1 00' Drilling ahead at 4920' MD> had 400 units of gas to surface. I Had 400 units of gas @ 5120' MD, at surface. At around 5055' the ECDs started to climb, started reaming twice and lowered our ROPs to help keep them down as well as pump sweeps every 400' later learned that the mud wt had gotten out control and was the reason for the higher ECDs. At 5467' MD> Had 2758 units of gas to surface> Picked up and flow checked well. And again at 5539 MD. 3525 units. No Flow. I Short tripped at 5729. no problems, Rill and drilling ahead to 6051' MD had a wash out in the mud line down in the pump room> repair same. I Went back to drilling and drilled to 6155' MD when we had to repair an air boot between pump complexes and then the MWD computers crashed> reboot same. I After drilling at 6206 MD and 5150' TVD had formation change should be in the Tarn and ROPs have picked up from 55/60 FPH to 125 FPH. Again while drilling at 6298' MD, Computer Crashed and was down for Ihr and 30 min, Corrected the problem and Drilling resumed. I BRA didnt require much to maintain tangent with a total of9.6% total slide 11g for section. BRA began showing a 1 °/100 drop rate from 6900' md +1- but was nearly in target zone so inclination was not corrected. Well was TD'd at 7400' md. for total section footage of 4050' with 34.41 hrs for an overall avg of 117. 7'/hr. Bottoms up was circulated 3x> short tripped with tight spots began backreaming to 6294' where hole packed off and started taking fluid. Pumped high vis sweep and LCM, circulated and conditioned. Resumed backreaming out to shoe. Decision was made to POOH and stand back MWD, RIH with bit, NE, DC's, Stabs. I Page 2 Sperry-Sun Drilling Services I I I I I I I I I I I I I I I I I I I I KerrMcGee Ataruq it 2 Discussion: BHA Summary: Even being 38' off the line at KOP, we still manage to get the build section done, Surface was drilled to 3350' MD in last than 30 hrs. Avg. ROP = 141 FPH. Sliding Footage = 850, Rotating Footage = 2284, all BRA and tools worked very well with no down time in the surface section. PfUBHA # 2 and 7" Sperry drill 7/8 Lobe 6.0 Stage, Motor with 1.22 degree bend, Drilled from 3350 to 5539' in 15.82 on bottom hrs, the assembly did very well. After getting drilling underway, found the motor assembly is dropping and turning left slightly per/lOO' about.56 to .81 degrees per/lOO' and .33 degree peril 00 left hand turn. BHA Bit Motor Hole Size MDln MD Out TVDln TVD Out Incln Ine out Aziln AzI Out Drlg Cire # # Run # (in) (ft) (ft) (ft) (ft) (deg) (deg) (deg) (deg) hrs hrs 1 1 1 12.250 76 216 76 216 0.4 0.7 219 225 1 0 2 2rr1 2 12.250 216 3350 216 3098 0.7 42.1 225 6 24 15 3 3 3 8.500 3350 7400 3098 6124 42.1 35.7 6 6 34 39 4 4 8.500 7400 7400 6124 6124 35.7 35.7 6 6 0 5 Table 1 - BHA Summary Motor Run Summary: The 8" 4/5 lobe 5.3 stage Motor Performed very well on the surface section drilling vertical to 1750' MD at KOP. and had no problems with the reqiured build rates to hit the target The motor bend was set at 1.15 degrees, Footage Sliding = 850' and Footage Rotating = 2284 in less than 30 hrs. The 7" 7/8 Lobe 6.0 stage Sperry drill motor with a 1.22 degree bend also has done a great job, meeting all expectations, even exceeding the RPM Parameters with both motors at 120 RPMs the Customer requires. Motor Manufacturer Type Lobe CD Gauge Bend Adj DLS (Oñ) ROP (Ori) ROP (Rot) Run # (in) (in) (deg) (°/100') (ftlhr) (ftlhr) 1 SSDS SpenyDrill 4/5 8.000 12.000 1.15 N 0 124 2 SSDS SpenyDrill 4/5 8.000 12.000 1.15 N 94 147 3 SSDS SpenyDrill 7/8 6.750 8.300 1.22 N 85 121 TaMe2-NlowrRunSwmmary Bit Run Summary: Thanked Jim Mosley for getting the MX-C 1 12.250 Bit outto run instead of the GT -1 Bit, Mark and myself explained that since we were on short time, that we may of had to do the surface section with two bits ifwe had of run the GT -I. and that the MX-C 1 would have a better shot of drilling to T.D. with a one bit run. Bit was graded 4/4/WT/GÆll/8/ER/TD Hughes 8.5" HOC 605 RB, performed to all expectations, With good ROPs and good steering abilities while drilling the production hole section.. Bit Manufacturer Style OD Gge Len Nozzles TFA Dull Grades Ftge Drlg ROP # (in) (in) (/32"s) (In") 10 D L BGO R (ft) hrs (ftlhr) 1 HUGHES MX-1 12.250 6.000 3x20. 1x12 1.031 140 1.13 124 2rr1 HUGHES MX-1 12.250 6.000 3x20, 1x12 1.031 4-4-WT -G -E-O-ER- TD 3134 23.61 133 3 Hughes, RB HOC605 8.500 3.000 5x12 0.552 1-1-WT-A -X-I-NO- TD 4050 34.41 118 4 Hughes GT1 8.500 3x40 3.682 0 0.00 Table 3 - Bit Run Swmmary Surface Hole Section: Would have liked to been able to made some corrective slide keeping near vertical, as it was we ended up 38' off the line and was still able to make the required build and hold needed. I was asked not to because of the time limits, placed on the rig to hurry and get done before our Page 3 Sperry-sun Drilfing Services I KerrMcGee Ataruq iJ 2 I season time expired. Surface was drilled in less than 30.00 hrs. I Production Hole Section: All Targets were hit I - I Even being 38' off the line at KOP, we still manage to get the build section done, Surface was drilled to 3350' MD in last than 30 hrs. Avg. ROP = 141 FPH. Sliding Footage = 850, Rotating Footage = 2284, all BHA and tools worked very well with no down time in the surface section. I PIUBHA # 2 and 7" Sperry drill 7/8 Lobe 6.0 Stage, Motor with 1.22 degree bend, Drilled from 3350 to 5539' in 15.82 on bottom hrs, the assembly did very well. I After getting drilling under way, found the motor assembly is dropping and turning left slightly perlIOO' about .56 to .81 degrees peril 00' and .33 degree perIl 00 left hand turn. I I I I I I I I I I I Page 4 Sperry-Sun Drilling Serviçes I I KerrMcGee I Hours by Operation Summary Drilling ~:'l!IUìi!.~t. ß]1:~~1 59.15 I RigUp/TearDown ¡] r¡:u lni_ 57 I Circulate rV'4i ~~ ¡,{'l!I¡J-;~ <1.71 Tñpping W] - ¡ M 24.16 I c o :w I! CIJ Co o - Reaming I Washing ... 17.11 PUILD BHA _ 16.42 - Miscellaneous - '"II 21.45 I - Run Casing I Cement _ 16 Nipple Up BOP I1iI!!IiiI 13 other ~~j~ Lt?\.1 28.5 I o 50 Total Hours During Job I Days vs. Depth 0 L 500 1000 1500 2000 2500 3000 \ g .c ~ 3500 u 0 " CIJ 4000 .. :::II ¡ :¡: 4500 5000 5500 I I I I I I I I 6000 I 6500 7000 I 7500 o 1 2 3 4 5 6 7 8 9 10 11 12 13 Day I I \ L Hours per BHA Breakdown Ataruq # 2 100 90 :>. 80 .. !II ~ 70 == 60 0 ãi 50 ID 1/1 40 .. :::II 0 30 :J: ;¡¡ 20 ~ 10 3 0 ¡;;;;;¡ 1 100 I!!!iI Drilling m Circulating m Reaming 0 Other 93 ~ ': f ~ d 15 u- 2 3 4 BHA Number Average Rate of Penetration per BHA 140 123.9 120 100_ .. 80 .c !ê. Do 60 ~ 40 20 0 1 Footage per BHA 4500 4000 3500 g 3000 ~ 2500 .;:: 0 u 2000 CI lIS Õ 1500 0 u. 1000 500 140 0 - 1 IæJ Rotated 1m Oriented Page 5 1377 117.7 .'¡ 2 3 4 BHA Number 4050 , "'" í i 3134 ~ i ¡ ¡.. 2 3 BHA Number 4 Sperry-Sun Drilling Services I I I H::·ài~['-:;&.¡¡!ê~dJ~T~~?~ Sperry Drilling Services Kerr-McGee Corporation I I I I I I I I I I I I I I I I 1000 - 2000 - ..c -- a.. <I> o 3000 ro o :e <I> > 4000 ¢::: 5000 o o o ~ II ..s::: (,) c: :-: 6000 Q) (t <.J CfJ DrillOUest 3.03.06.008 Eastings -3000 -2000 I I -1 000 I ~~ ,; H40.0tl '<1.,~::.:.,.__ ~~.. ~~, Western North Slope, Kerr McGee Ataruq #2 ~.". " ~~'" .. .. I 0---- ,..seo.llo Well: Current Well Properties Ataruq #2 F!&OI.OO Horizontal Coordinates: Ref. Global Coordinates: Ref. 47TFNL. 1834.6' FEL : Ref. Geographical Coordinates: RKB Elevation: 5969528.36 N. 480716.30 E 0.36 N. 0.30 E 70· 19' 40.4852" N, 150· 09' 22.9997" W 102.85ft above Mean Sea Level I DrillQues{ o I I I I I I I "",J} I J~ I ""..11 I I - 4000 - 3000 ~ c: :ë "t::= - 2000 0 Z 1000 ~ o o ..... I J. I ----+---- 0 North Reference: Units : True North Feet (US Survey) Scale: 1inch = 1000ft -5000 -4000 I I The "Directional DifFICulty Index· for this profile is 6.0 ~.(.....¡.~ '"!j-~:,"-,,:~~ II .J:: o .S ..... å) m o CI) \ I o 1000 Vertical Section I 2000 I 3000 I 4000 Section Azimuth: 6.940° (True North) - - - - - - - - - - - - - - - - - - - sper'r'\I-sun Page: 1 Operator: KerrMcGee Field: Western North Slope Well : Ataruq # 2 Location: Ataruq # 2 £WC'v~~8I fjrilliTig:~YdrfTdtbfs Rig: 27-E Job # :AK-MJ-0003637543 North Ref: True Declination : ° VS Dir: 6.94° (from Wellhead) WELLBORE SURVEY DRILLING PARAMETERS Measured Incl I Azi Vertical Vertical Coordinates DLS Build Turn WOB RPM I Flow ¡standi Orientation Tool ROP ¡BHA Comment Section N'S I EIW Rate Rate Rate Pipe I From \ To Depth Angle Dlr Depth I Face I No. I (ft) (deg) (deg) (ft) (ft) (ft) i (ft) (°'100') (°'100') (°'100') (klbs) (gpm) (psi) (ft) . (ft) (deg) (ftIhr)/ (#) \ 0.0 0.0 I 0.0 0.00 0.00 0.00 ¡ 0.00 0.00 0.00 0.0 i Tieon 146.15 0.71 218.66 146.1 -0.8 -0.7 ! -0.6 0.49 0.49 0.00 5 80 468 650 103 \ 1 I 239.04 0.67 226.67 239.0 -1.7 -1.5 -1.31 0.11 -0.04 0.00 10 80 750 1000 1951 2 333.82 0.57 226.04 333.8 -2.5 i -2.2 -2.1 0.11 -0.11 0.00 10 90 76511075 187 I 2 I -3.0 ì -2.7 0.20 0.16 0.00 10 100 204 \ 422.06 0.71 216.14 422.0 -3.3 ! 800 ' 1200 59! 2 514.99 0.84 219.97 515.0 -4.4 -4.0 -3.5 0.15 0.14 0.00 10 100 780 1250 2 601.09 0.82 218.11 601.1 -5.4 -4.9 -4.3 0.04 -0.02 0.00 10 110 800 1350 173 i 2 692.39 0.79 224.71 692.3 -6.5 -5.9 -5.1 0.11 -0.03 0.00 10 110 800 1400 1871 2 782.96 0.76 222.52 782.9 -7.5 -6.6 -6.0 0.05 -0.03 0.00 10 110 800 1400 214 2 874.53 1.05 1218.98 874.5 -8.7 -7.9 -6.9 0.32 0.32 0.00 10 110 800 1425 209 2 960.01 1.25 227.98 959.9 -10.0 -9.1 -8.1 0.31 0.23 10.53 10 110 790 1500 200 2 1052.85 1.31 230.94 1052.7 -11.6 -10.5 -9.7 0.10 0.06 3.19 10 110 790 1550 200 2 1148.98 1.59 226.51 1148.8 -13.4 -12.1 -11.5 0.31 0.29 -4.61 10 110 790 1550 200 2 1242.78 1.79 225.50 1242.6 -15.5 -14.0 -13.5 0.22 0.21 -1.08 10 110 790 1550 200 2 1336.85 1.54 215.21 1336.6 -17.8 -16.1 -15.2 0.41 -0.27 -10.94 10 110 780 1560 200 2 1432.68 2.07 230.01 1432.4 -20.2 -18.2 -17.3 0.73 0.55 15.44 10 110 794 1580 200 2 1526.01 2.15 228.27 1525.7 -22.7 -20.5 -19.9 0.11 0.09 -1.66 10 110 750 1475 150 2 1623.58 2.30 228.58 1623.2 -25.6 -23.0 -22.7 0.15 0.15 0.32 10 110 780 1500 125 2 1717.97 2.22 226.51 1717.5 -28.4 -25.5 -25.5 0.12 -0.08 -2.19 10 110 785 1550 146 2 1812.84 1.97 338.01 1812.3 -28.4 -25.3 -27.4 3.65 -0.26 117.53 20 605 1200 1787 1813 7R 72 2 1906.46 7.53 7.49 1905.6 -20.8 -17.7 -27.2 6.30 5.94 31.49 20 610 1200 1813 1881 7R 113 2 1881 1906 7R 2 1999.86 11.39 7.85 1997.7 -5.51 -2.5 -25.2 4.13 4.13 0.39 20 605 1200 1906 1975 7R 131 2 1995 2000 7R 2 2094.43 14.30 10.37 2089.9 15.5 18.3 -21.8 3.13 3.08 2.66 20 110 750 1550 2000 2049 7R 166 2 2069 20891 2 2186.87 17.37 12.54 2178.8 40.6 43.0 -16.7 3.38 3.32 2.35 20 605 1200 2143 2164 7R 131 2 2281.991 2184 2187 7R 2 20.98 13.42 2268.7 71.7 73.4 -9.7 3.81 3.80 0.93 20 750 1575 2187 2247 7R 68 2 2270 2282 7R 2 2375.23 24.25 15.03 2354.7 107.3 108.2 -0.9 3.57 3.51 1.73 20 800 1750 2282 2330 7R 138 2 - - - - - - - - - - - - - - - - - - - sper'r'y-sun Page: 2 OperatQr : KerrMcGee Field : Western North Slope Well: Ataruq # 2 Location: Ataruq # 2 SUrt}C~ ~~fY (jrilliñ~~YJrfrdtt~ Rig: 27-E Job # :AK-MJ-0003637543 North Ref: True Declination : 0 VS Dir: 6.940 (from Wellhead) WELLBORE SURVEY DRILLING PARAMETERS Measured Incl Azi Vertical Vertical I Coordinates DLS: Build \ Turn WOB RPM Flow IStand Orientation I Tool ROP IBHA Comment Depth Angle Dir Depth Section N/S I E/W Rate Rate Rate i Pipe From To I Face ! No. (ft) (deg) (deg) (ft) (ft) I (ft) (ft) (°/100') (°/100') (°/100') (klbs) (gpm) (psi) (ft) (ft) I (deg) I (ftlhr)! (#) i 7R1 I 80011750 2359 2375 ! 2 2470.04 29.20 15.70 2439.4 149.4 149.3 10.4 5.23 5.22 0.71 20 2375 2444 7R I 138 ¡ 2 I 2464 2470 10L i ! 2 2565.28 33.53 14.18 2520.7\ 198.5 197.1 23.2 4.62 4.55 -1.60 20 800 11750 2470 2539 10L 105 i 2 80011750 2564 2565 25L i 2 ! 2659.74 37.99 11.91 2597.3 I 253.4 250.9 35.6 4.93 I 4.72 -2.40 20 2565 2634 25L 94 i 2 I I 2654 2660 25L 2 30 I I I 800 11750 ¡ 2755.83 42.17 11.13 2670.8 315.0 311.5 47.9 4.381 4.35 -0.81 2660 2729 25L 1221 2 I 2754 2756 10L ! 2 2849.43 45.63 10.99 2738.3 379.8 375.2 60.4 3.70 3.70 -0.15 30 1.10 840 12050 2756 2823 10L 190 I 2 2944.67 45.33 9.47 2805.0 447.5 442.0 72.4 1.18 -0.31 -1.60 30 840 ! 2050 2918 2945 100L 84 ¡ 2 3036.21 45.15 7.77 2869.5 512.5 506.3 82.2 1.33 -0.20 -1.86 30 110 840 I 2050 2945 2953 100L 143! 2 3132.07 44.16 7.62 2937.7 579.91 573.1 91.2 1.04 -1.03 -0.16 30 110 840 I 2050 3105 3120 170L 98 2 3227.17 42.34 6.67 3006.9 645.0 637.7 99.3 2.03 -1.91 -1.00 30 110 840 i 2050 3200 3220 155L 98 2 3280.35 42.13 5.85 3046.3 . 680.8 673.2 103.2 1.11 -0.39 -1.54 30 110 840 i 2050 98 2 3401.90 42.15 5.38 3136.5 762.3 754.4 111.2 0.26 0.02 -0.39 5 85 520 ! 1700 194 3 3498.07 41.35 5.31 3208.2 826.3 818.2 ! 117.1 0.83 -0.83 -0.07 5 95 540 1800 222 ! 3 I 3588.83 40.59 4.69 3276.7 885.8 877.4 122.3 0.95 -0.84 -0.68 8 120 620 2350 241 i 3 3682.83 41.80 5.63 3347.5 947.7 939.1 127.9 1.45 1.29 1.00 8 120 620 2350 3656 3682 28R 1941 3 3778.29 41.32 5.59 3418.9 1011.0 1002.1 134.1 0.50 -0.50 -0.04 10 120 620 2350 193 3 3871.66 42.62 6.17 3488.3 1073.4 1064.2 140.5 1.45 1.39 0.62 10 120 620 2400 3843 3868 20R 152 3 3961.62 41.73 5.82 3555.0 1133.8 1124.3 146.8 1.02 -0.99 -0.39 10 120 620 2425 1761 3 4056.74 41.14 6.15 3626.3 1196.7 1186.9 153.4 0.66 -0.62 0.35 10 120 620 ! 2450 I 132 3 I 4152.70 42.48 6.67 3697.8 1260.7 I 1250.5 160.5 1.44 1.40 0.54 20 620 2450 4123 4153 25R 126 3 4248.81 43.69 7.74 3768.0 1326.4 1315.6 168.8 1.47 1.26 1.11 10 . 120 620 2525 4153 4156 25R 177 3 4218 4243 20R 3 4343.36 42.99 7.79 3836.8 1391.2 1379.9 177.5 0.74 -0.74 0.05 10 120 620 2500 141 3 4437.80 43.80 7.01 3905.4 1456.11 1444.2 185.9 1.03 0.86 -0.83 10 120 620 2500 4409 4431 HS 169 3 4533.04 43.20 6.69 3974.5 1521.71 1509.3 193.7 0.67 -0.63 -0.34 10 120 620 2525 158 3 4626.72 42.69 6.82 4043.1 1585.5 1572.7 201.2 0.55 -0.54 0.14 10 120 620 2500 114 3 4721.29 I 6.05 4113.1 1649.1 1635.9 208.3 1.12 -0.97 -0.81 10 120 620 2550 100 3 41.771 - - - - - - - - - - - - - - - - - - - sper'r'v-sun Page: 3 Operator: KerrMcGee Field: Western North Slope Well: Ataruq # 2 Location: Ataruq # 2 ~~8' erilliñg:~Ydrn:crrtii Rig: 27-E Job # :AK-MJ-0003637543 North Ref: True Declination : 0 VS Dir: 6.940 (from Wellhead) WELLBORE SURVEY DRILLING PARAMETERS , Stand) Orientation ROP BHA 1 Comment Measured Incl Azi Vertical Vertical Coordinates DLS Build Turn WOB RPM Flow Tool Depth Angle Dir Depth Section N/S EIW Rate Rate Rate Pipe ! From To Face No. I (ft) (deg) (deg) (ft) (ft) (ft) (ft) (°/100') (°/100') (°/100') (klbs) (gpm) (psi) \ (ft) (ft) (deg) (ftIhr) (#) i 4814.26 42.84 6.41 4181.8 1711.6 1698.1 215.1 1.18 1.15 0.39 10 120 620 . 2550 4787 4812 \ HS I 1321 3 \ 4909.24 42.22 5.86 4251.8 1775.8 1761.9 222.0 0.76 -0.651 -0.58 10 120 620 2575 49751 I 140; 3 , 5002.24 43.43 6.76 4320.0 1839.0 1824.7 228.9 1.46 1.30 0.97 20 620 2550 5002 HS 90 3 5095.18 42.64 6.05 4388.0 1902.5 1887.8 236.0 1.00 -0.85 ! -0.76 10 120 620 2650 5002 5003 HS 129 3 I 5188.62 43.79 6.31 4456.1 1966.4 1951.4 242.9 1.25 1.23 0.28 20 620 2700 5162 5189 HS 70 3 5282.76 43.12 5.98 4524.4 2031.2 2015.8 249.8 0.75 -0.71 -0.35 10 120 620 2800 5189 5190 HS \ 115 3 5366.23 42.35 6.55 4585.7 2087.8 2072.1 256.0 1.03 -0.92 0.68 10 120 620 2800 134 3 5471.94 41.53 5.84 4664.3 2158.51 2142.3 263.6 0.90 -0.78 -0.67 10 120 620 2800 I i 141 3 5568.15 42.97 6.28 4735.6 2223.1 2206.6 270.5 1.53 1.50 0.46 10 120 620 2800 5539 5562 HS 141 3 5662.33 42.14 5.91 4804.9 2286.8 2270.0 277.2 0.92 -0.88 -0.39 10 120 620 2800 144 3 5757.45 41.33 5.56 4875.9 2350.1 2333.0 283.6 0.89 -0.85 -0.37 10 120 620 2800 3 5852.50 41.99 5.83 4946.9 2413.3 2395.8 289.8 0.72 0.69 0.28 20 620 2850 5844 5853 10R 33 3 5948.32 43.82 6.38 5017.1 2478.5 2460.7 296.8 1.95 1.91 0.57 12 120 620 2850 5853 5872 10R 71 3 5920 5933 15R 3 6043.50 43.10 5.78 5086.2 2544.0 2525.8 303.7 0.87 -0.76 -0.63 12 120 620 2850 97 3 6137.93 43.23 6.46 5155.1 2608.6 2590.0 310.6 0.51 0.14 0.72 12 120 620 2850 6110 6125 25R 68 3 6232.24 44.14 6.95 5223.3 2673.7 2654.7 318.2 1.03 0.96 0.52 25 600 2650 6224 6232 25R 125 3 6326.23 43.22 6.92 5291.2 2738.6 2719.1 326.1 0.98 -0.98 -0.03 12 120 620 2850 6232 6298 25R 127 3 6419.52 42.60 6.14 5359.6 2802.1 2782.2 333.3 0.88 -0.66 -0.84 10 120 600 2750 108 3 6513.93 42.14 6.66 5429.3 2865.8 2845.5 340.4 0.61 -0.49 0.55 10 120 613 2800 93 3 I 2926.5 2905.8 347.3 1.35 -1.33 -0.29 12 120 613 6605.48 40.92 6.39 5497.9 2875 96 3 6700.37 40.05 6.18 5570.0 2988.1 2967.0 354.0 0.93 -0.92 -0.22 12 120 613 3050 120 3 6794.44 38.85 6.11 5642.7 3047.8 3026.4 360.4 1.28 -1.28 -0.07 12 120 613 3150 120 3 6888.27 37.99 6.02 5716.2 3106.1 3084.4 366.6 0.92 -0.92 -0.10 12 120 620 3150 120 3 6982.87 38.77 7.14 5790.3 3164.9 3142.8 373.3 1.10 0.82 1.18 12 120 620 3225 6900 6923 25R 120 3 7077.84 37.57 7.24 5865.0 3223.5 3201.0 380.7 1.27 -1.26 0.11 12 120 620 3225 120 3 7172.55 36.79 7.64 5940.5 3280.8 3257.8 388.1 0.86 -0.82 0.42 12 120 620 3300 941 3 7267.26 36.06 7.25 6016.7 3337.0 3313.5 395.4 0.81 -0.77 -0.41 12 120 620 3300 89/ 3 7330.84 35.71 6.33 6068.2 3374.3 3350.5 399.8 1.01 -0.55 -1.45 12 120 620 3300 89 3 7400.00 35.71 6.33 6124.3 3414.6 3390.6 404.2 0.00 0.00 0.00 25 620 3150 54 4 Extrapolated to TD I I I I sper'r'v-sun CRI LLI N G SERVI c: E 5 Operator: KerrMcGee Well: Ataruq # 2 Field: Western North Slope Location: Ataruq # 2 Rig: 27-E Job #: AK-MJ-0003637543 BHA# 1 I BHA Report II. BHA# 1 : Date In :4/3/2005 I MFR SSDS Serial # 5070258 800306 3943 NAD ID (in) 3.000 5.000 2.880 3.000 P 6-5/8" Reg B 6-5/8" H90 B 4-1/2" IF B 4-1/2" IF 3.84 I BIT DATA I Bit # OD (in) 1 12.250 MOTOR DATA I Run # OD (in) 1 8.000 MFR HUGHES I COMPONENT DATA Item Description # 1 2 3 4 HUGHES MX-112.250" 8" SperryDrill Lobe 4/5 - 5.3 stg Non-Mag Cross Over Bottleneck Sub 14x HWDP I 454.56 I I Inclination Azimuth I I I I I I I COMMENTS Drilling assembly to make room to P/U rest of BHA. I I I I I sper'r'v-sun CRILLING SeAVIc::eS I B HA Report . page 2 I I OBJECTIVES: BHA #1: Drill enough hole to pick up the rest of the BHA, with just bit, motor, XO and 2 stands of Hwt RESULTS: Operator: KerrMcGee Well: Ataruq # 2 Field: Western North Slope Location: Ataruq # 2 Rig: 27-E Job # : AK-MJ-0003637543 BHA# 1 BHA #1: Drilled from ice tag @ 76' to 216' with bit, Motor and HWT, POOH w/ HWT. I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I O.D. 12.25" 8" 6.7f)' 5" Length 1.15' 31.02' 2.46' 419.93' 5pE1f'"1~V-5Un 9 R 1 !-I..II\II:$ s e R V 1 ¡:: = 5 BHA Schematic KerrMcGee Ataruq # 2 BHA ID#: 1 Drill Hole for BHA BHA Configuration Description HUGHES MX-112.25O" 8" SperryDrill Lobe 4/5 - 5.3 stg Non-Mag Cross OVer Bottleneck Sub 14x 14x HWDP BHA Discussion Drilling assembly to make room to P/U rest of BHA. ~ I!IIIII!I Box 4-1/2" IF ~:~; ... . :'.::_ ."J .. . 14 x 14x HWDP F J LJ, !i!IIIIII!I Box 4-112" /F Non-Mag Cross OVer Bottleneck Sub Box 6-518" H90 8" sperryDrin Lobe 4/5 - 5.3 stg Õ Pin 6-5/8" Rea J}; HUGHES MX:1 12.250" I I COMPONENT DATA Item Description Serial OD ID Weight Length # # (in) (in) (Ibs/ft) (ft) 1 HUGHES MX-112.250" 5070258 12.250 3.000 377.57 P 6-5/8" Reg 1.15 2 8" SperryDrill Lobe 4/5 - 5.3 stg 800306 8.000 5.000 104.39 B 6-5/8" H90 31.02 3 Integral Blade Stabilizer 771477 8.150 3.000 153.70 B 6-5/8" H90 5.67 4 MWD 8" RLL 73361 HRGV8 8.000 1.920 161.44 B 6-5/8" Reg 23.38 5 MWD 8" PM 74375M8 8.000 1.920 161.44 B 6-5/8" Reg 9.15 6 MWD 8" NUKES 73355NILl8 8.000 1.920 11.940 161.44 B 6-5/8" Reg 37.53 7 MWD 8" PULSER 72521 k6 8.000 1.920 161.44 B 6-5/8" Reg 11.25 8 Non-Mag Float Sub 3939 8.000 2.810 150.17 B 6-5/8" H90 2.43 9 1 x Non-Mag Flex Drill collar 192418 8.000 2.810 150.17 B 6-5/8" H90 31.03 10 1 x Non-Mag Flex Drill collar 718 8.000 2.880 149.10 B 6-5/8" H90 30.63 11 1 x Non-Mag Flex Drill collar 1924154 8.000 2.880 149.10 B 6-5/8" H90 31.03 12 Non-Mag Cross Over Bottleneck Sub 3943 6.760 2.880 7.830 100.11 B 4-1/2" IF 2.46 13 14x HWDP NAD 5.000 3.000 49.30 B 4-1/2" IF 419.93 14 Drilling Jar - 56.51 hrs 14161562 6.500 2.500 96.36 B 4-1/2" IF 32.58 15 t5x HWDP NAD 27 5.000 3.000 49.30 B 4-1/2" IF 454.53 1123.77 BHA Report Operator: KerrMcGee Well : Ataruq # 2 Field: Western North Slope Location: Ataruq # 2 Rig: 27-E Job #: AK-MJ-0003637543 BHA# 2 I sper'r'\I-5un CRI LLI N G SERVI c: E 5 I I I Bit# 2rr1 I I I I I I I I I I Inclination (deg) Azimuth (deg) I COMMENTS Sensor Distances= Gamma= 41.32// Res.= 49.39 /I Dir = 65.55 // SLD = 82.25// CTN= 101.52 Planned Flow Rates 700-900 GPM /I Motor Rev/Gal= .26 // WOB= 35K Off set= 48/816 X 360= 21.18 I I I I I BHA Report page 2 Operator: KerrMcGee Well: Ataruq # 2 Field : Western North Slope Location: Ataruq # 2 Rig: 27-E Job #: AK-MJ-0003637543 BHA# 2 5per'~V-5un CRIL-LING SERVICES I I OBJECTIVES: BHA #2: This BHA will kick-off from vertical at 1750' md and build to 42.5° inc at 4°/100 at an azimuth of 7" and drill tangent to TD at 3330' ,md. I RESULTS: I BHA #2: Initiated build at planned depth of 1750' md, slid 77.5% in build section to achieve 4° build rate, tangent was drilled and TD'd hole section at 3350 'md. BHA drilled 3134' in 23.6 hrs for an overall ROP avg of 132.8'/hrwith 27% slide fig for section. I Bit was graded 4-4-WT-G-E-0-ER-TD. I I I I I I I I I I I I v-sun CRa 1..1..1 N G SERVI ¡:; es ._.. __,..w~. I BHA Schematic I KerrMcGee Ataruq # 2 BHA ID#: 2 12.250 Surface Hole I BHA Configuration O.D. Length Description 12.25" 1.15' HUGHES MX-1 12.250" 8" 31.02' 8" SperryDrill Lobe 4/5 - 5.3 stg 8.15" 5.67' Integral Blade Stabilizer 8" 23.38' MWD8" RLL 8" 9.15' MWD 8" PM 8" 37.53' MWD 8" NUKES 8" 11.25' MWD 8" PULSER 8" 2.43' Non-Mag Float Sub 8" 31.03' 1x Non-Mag Flex Drill collar 8" 30.63' 1x Non-Mag Flex Drill collar 8" 31.03' 1x Non-Mag Flex Drill collar 6.7f>' 2.46' Non-Mag Cross Over Bottleneck Sub 5" 419.93' 14 x 14x HWDP 6.5" 32.58' Drilling Jar - 56.51 hrs 5" 454.53' 15x15x HWDP I I I I I BHA Discussion I Sensor Distances= Gamma= 41.32" Res.= 49.39" Dir = 65.55 " SLD = 82.25" CTN= 101.52 Planned Flow Rates 700-900 GPM " Motor Rev/Gal= .26 " WOB= 35K Off set= 48/816 X 360= 21.18 I I I I I I I I I [J Box 4-1/2" IF c 15 x 15x HWDP Box 4-1/2" /F Drilling Jar - 56.51 hrs Box 4-1/2" /F 14x14xHWDP Box 4-112" /F Non-Mag Cross Over Bottleneck Sub Box 6-5/8" H90 1x Non-Mag Flex Drill collar Box 6-5/8" H90 1x Non-Mag Flex Drill collar Box 6-5/8" H90 1x Non-Mag Flex Drill collar Box 6-5/8" H90 Non-Mag Root Sub Box 6-5/8" Reg MWD 8" PUlSER Box 6-5/8" Reg MWD S" NUKES Box 6-5/8" Reg MWD 8" PM Box 6-5/8" Reg MWDS" RLL Box 6-5/8" H90 Integral Blade Stabilizer Box 6-5/8" H90 8" SperryDrill Lobe 4/5 - 5.3 stg Pin 6-5/8" Reg HUGHES MX-1 12.250" I I I sper'r'\¡'-sun CRILLI N G SERVIC:ES Operator: KerrMcGee Well: Ataruq # 2 Field: Western North Slope Location: Ataruq # 2 Rig: 27-E Job #: AK-MJ-0003637543 BHA# 3 BHA Report I I BHA# 3 : Date In :4/8/2005 I I I I I I I I I I I I I I I BIT DATA I Bit # OD (in) MFR 3 8.500 Hughes, RB MOTOR DATA I Run# OD (in) MFR 3 6.750 SSDS COMPONENT DATA I Item Description Serial OD ID Weight Length # # (in) (in) (Ibs/ft) (ft) 1 Hughes RB HCM 605 7102153 8.500 3.000 169.30 P 4-1/2" Reg 0.96 2 7" SperryDrill Lobe 7/8 -6.0 stg 700032 6.750 4.753 61.48 B 4-1/2" IF 24.67 3.00 3 Integral Blade Stabilizer 172612 6.500 2.750 92.85 B 4-1/2" IF 5.46 27.98 4 RLUEWR/DGR 733566HRWG 6.750 1.920 112.09 B 4-1/2" IF 27.98 5 Directional ssds 6.750 1.920 112.09 B 4-1/2" IF 9.21 6 ALD/CTN 73807N1L26 6.750 1.920 8.300 112.09 B 4-112" IF 29.94 7 PUlSER 72521K6 6.750 1.920 112.09 B 4-1/2" IF 11.25 8 Non-Mag Float Sub SSDSAK 6.500 2.810 91.95 B 4-1/2" IF 2.30 9 1 x Non-Mag Flex Drill collar 2677 6.500 2.813 92.00 B 4-1/2" IF 30.23 10 1 x Non-Mag Flex Drill collar 10574613 6.500 2.940 89.95 B 4-112" IF 31.06 11 1 x Non-Mag Flex Drill collar 998 6.500 2.880 90.89 B 4-1/2" IF 30.92 12 15xHWDP NAD 27 5.000 3.000 49.30 B 4-1/2" IF 454.53 13 Drilling Jar - 56.51 hrs 14161562 6.500 2.500 96.36 B 4-1/2" IF 32.58 14 14x HWDP NAD 5.000 3.000 49.30 B 4-1/2" IF 419.93 1111.02 6289 Build (°/100') Inclination (deg) I Oriented : Azimuth (deg) i Rotated : -0.67 -0.33 I Total: -0.16 0.02 I 0.16 COMMENTS Motor revlgal = .331 Torq Bit to 14-16K /I Motor and MWD torq = 30K Do not run over 25K on bit without Directional Drillers Knowledge!! Jar hrs @ Start of run:: 22.10 hrs. Sensor Distances: Gamma= 34.84// Res.= 42.59// PWD= 50.891/ Dir= 63.40 /I ALD= 80.93// CTN= 94.20 I I I I I I I I I I I I I I I I I I I 5per'~V-5un CAILLING SEAVlc::eS Operator: KerrMcGee Well: Ataruq # 2 Field: Western North Slope Location: Ataruq # 2 Rig: 27-E Job # : AK-MJ-0003637543 BHA# 3 BHA Report page 2 OBJECTIVES: BHA #3: Drill tangent to TD. RESULTS: BHA #3: BHA drilled out casing shoe, performed FIT 2x. After getting drilling under way, found the motor assembly is dropping and turning left slightly per/100' about .56 to .81 degrees per/100' . Short tripped at 5729, no problems. After drilling at 6206 MD and 5150' TVD had formation change should be in the Tarn & Moraine and ROPs have picked up from 55/ 60 FPH to 125 FPH. BHA didnt require much to maintain tangent with a total of 9.6% total slide ftg for section. BHA began showing a 1°/100 drop rate from 6900' md +/- but was nearly in target zone so inclination was not corrected. Well was TD'd at 7400' md. for total section footage of 4050' with 34.41 hrs for an overall avg of 117. 7'/hr. Bottoms up was circulated 3x, short tripped with tight spots began backreaming to 6294' where hole packed off and started taking fluid. Pumped high vis sweep and LCM, circulated and conditioned. Resumed backreaming out to shoe. POOH, racked MWD, LID motor and bit. Bit Graded 1-1-CT-C-X-I-NO-TD I I I I I O.D. 8.5" 6.75" 6.5" 6.75" 6.75" 6.75" 6.75' 6.5" 6.5" 6.5" 6.5" 5" 6.5" 5' I I I I I sper-m"'V-5un ;JFfI I...LII\I G SEiRVI r:: IE 5' BHA Schematic Length 0.96' 24.67' 5.46' 27.98' 921' 29.94' 11.25' 2.'3 3023' 31.06' 30.92' 454.53' 32.58' 419.93' KerrMcGee Ataruq # 2 BHA 10#: 3 Production Hole Section BHA Configuration Description Hughes RB HCM 605 7" SperryDriIl Lobe 7/8 -6.0 stg Integral Blade Stabilizer RLUEWR!DGR Directional ALDICTN PULSER Non-Mag Float Sub 1x Non-Mag Rex Dñll collar 1x Non-Mag Flex Drill collar 1x Non-Mag Flex Drill collar 1Sx15xHWDP Dñlling Jar - 56.51 hrs 14x14xHWDP BHA Discussion Motor revlgal = .331 Torq Bit to 14-16K/I Motor and MWDtorq =30K Do not run over 25K on bit without Directional Drillers Knowledge!! Jar hrs @Start of run = 22.10 hrs. Sensor Distances: Gamma= 34.84/1 Res.= 42.59/1 PWD= 50.89// Dir= 63.40 /I ALD= 80.93/1 CTN= 94.20 I I I I I I I I I fJ Box 4-1/2" IF CJ 14 x 14x HWDP = Box 4-1/2" IF Drilling Jar - 56.51 hrs Box 4-1/2" /F 15 x 15x HWDP Box 4-1/2" /F 1x Non-Mag Rex Dñll collar Box 4-1/2"/F 1x Non-Mag Flex Dñll collar Box 4-1/2" IF 1x Non-Mag Rex Dñll collar ,- -- - - - ~ - - - - - - ~ - - - - - - - - - -. - - - - - - - - - - - - - -- Im__~ Box 4-1/2" iF Non-Mag Roat Sub Box 4-1/2" /F PULSER Box 4-1/2" /F ALDICTN Box 4-1/2" /F Directional Box 4-1/2" IF RLUEWRlDGR Box 4-1/2" IF Integral Blade Stabilizer Box 4-1/2"/F 7" SperryDrill Lobe 7/8 - 6.0 stg Pin 4-'//2" Reg Hughes RB HCM 605 I I BHA Report Operator: KerrMcGee Well : Ataruq # 2 Field: Western North Slope Location : Ataruq # 2 Rig: 27-E Job # : AK-MJ-0003637543 I sper'r'\{-sun C A I LLI N G 5 e AV I c:: e 5 I BHA# 4 : Date In :4/12/200e MO In (ft) : 7400 BIT DATA I Bit # OD (in) 4 8.500 MFR Hughes I I MOTOR DATA Run # OD (in) MFR I COMPONENT DATA Item Description Serial OD 10 Gauge Weight Top Con # # (in) (in) (in) (Ibslft) 1 Hughes GT1'Roller Cone Bit 6031696 8.500 3.000 8.500 169.30 P 4-112" Reg 2 Steel NB Stabilizer 3126 6.500 2.813 8.438 91.91 B 4-1/2" IF 3 1 x Non-Mag Flex Drill collar 998 6.500 2.880 90.89 B 4-1/2" IF 4 NM StringStabilizer 192462 6.750 2.813 8.250 100.77 B 4-1/2" IF 5 1 x Non-Mag Flex Drill collar 2677 6.500 2.813 92.00 B 4-1/2" IF 6 1 x Non-Mag Flex Drill collar 10574613 6.500 2.940 89.95 B 4-1/2" IF 7 NM String Stabilizer 62012 6.500 2.813 8.250 91.91 B 4-1/2" IF 8 15x HWDP NAO 27 5.000 3.000 49.30 B 4-1/2" IF 9 Drilling Jar - 56.51 hrs 14161562 6.500 2.500 96.36 B 4-1/2" IF 10 14x HWDP NAO 5.000 3.000 49.30 B 4-1/2" IF Length Bit - Center (ft) Blade (ft) 0.85 4.02 2.70 30.92 5.63 38.52 30.23 31.06 5.66 105.43 454.53 32.58 419.93 I I I 1015.41 I I I I BHA Weight in Air (Total) in Mud (Total) in Air (Bel Jars) : in Mud (Bel 6385 I I I I I I I I I I 0.0. 8.5" 6.5" 6.5" 6.75" 6.5" 6.5" 6.5" 5" 6.5" S' I I I I I I I I I I I I I I 5p~r'iV-5Un gRII-L.1 NG SERVU:::e5 BHA Schematic Length 0.85' 4.02' 30.92' 5.63' 30.23' 31.06' 5.66' 454.53' 32.58' 419.93' KerrMcGee Ataruq # 2 BHA 10#: 4 Clean-out O· i.:.... .....; -":" . Box 4-1/2" /F BHA Configuration (] 14, ,4< HWDP Description Hughes GT1 Roller Cone Bit Steel NB stabilizer 1x Non-Mag Flex Drill collar NM StringStabilizer 1x Non-Mag Flex Drill collar 1x Non-Mag Flex Drill collar NM string Stabilizer 15 x 15x HWOP Drilling Jar - 56.51 hrs 14 x 14x HWOP Box 4-1/2"/F Drilling Jar - 56.51 hrs Box 4-1/2" /F 15 x 15x HWOP Box 4-1/2" IF NM String Stabilizer ...... :¡. .'., ".. ~ ;,~: Box 4-112" /F 1x Non-Mag Flex Drill collar Box 4-112" /F .<.- 1x Non-Mag Flex Drill collar f; ~ Box 4-112"/F ri:.,'·)) I NM__ :i.·:"'~'7: )1r..·:~ ~ Box 4-1/2" IF . ," ~: "i'· .. '. .;1;- .. "f 1x Non-Mag Rex Drill collar ~ Box 4-1/2"/F '~ ~NB~"_ lH...,.·.·..·· '....., ~ Pin 4-1/2" Reg Hughes GT1 Roller Cone Bit I I . 'spef""....v-sun J. C.RIL..L..INI3 SEiRVII::EiS I Motor Serial # : 800306 Directional Driller(s) : Lee Martin Location : Ataruq # 2 Well : Ataruq # 2 Depth In/Out: 76 / 216 Application Details : 1111 [. i':']:.(I{'J~I=' rei' J:"~'. ['J~. I I ~- ~ l..-SIab",PadS"" - ==--:--=;~::::T --I --..---------- I MoIo< Top Pad Bend (Housing) ¡I , --I I I .... ¡ I . I ··1234567 I I I I I I I I Sleeve Tool I I MOTOR PERFORMANCE REPORT· HI I ft From Bit (ft) 1 3,84 2 10.83 3 11.72 4 32.17 5 6 7 Additional Features Flex Collar : No Brg Cfg (OfflOn) Job# : Operator : Rig Bit Run # Date InlOut KerrMcGee 27-E 1 BHA # : 1 4/3/2005 / 4/4/2005 Motor Run #: 1 Hole Size: 12.250 in Component Sleeve Stab/Pad Bent Housing Housing Tool Used Stator Elastomer Bent Sub / 2nd Bent Hsg Lower String Stab Upper String Stab Short Brg Pack : No Lobe Cfg ·,/ji:}í']:~~~~J~.~t~':ÎÌI·· Max Dogleg While Rotating Max Dogleg Overpulled In Max Dogleg Pushed Through ...,;'~'~ ,", Hole Azimuth Start I End Interval Oriented I Rot. Jarring Occured : No Diff Press (psi) I I Avg: Max: 18 50 Str RPM 80 80 " I .' n_ "'_.0,'" '":«.':_"}: ~r·-.-."~ì.;-: : .:c'.'''' ' . ·Î~·;~:i~·J~II.:t-~". .. Motor Tested Pre-Run Dump Sub Operating NIA Flow 1 gpm Flow 2 gpm Driveshaft Rotation Observed Bearing Leakage Observed I I I . -' -- - . 11;,ð'l~l~"Î. ..' '".c Base: Water 0/0 Oil/Water : .~ I I "',.";,:".." ",.>:>.;:::"':'--'" ..... ..-.... ," EŒIZ1I I , ~:.!~:~;!i]ffi'lh~~l":!.I{.J\III~I:;~.~. Problem Perceived No Performance Motor : Yes I I "/100' "/100' "/100' 218.66· 1224.60· 0/140 ft Rotn Torque (ft·/bs) 3000 3000 Brg Play Pressure 1 Pressure 2 No No Customer Representative's Signature (optional) : RPM Force Force Ibf Inc Start / End Directional Perf Or! / Rot Drag Up/Dn (Ibf) I 1 mm psi psi Type Yes Stab: 4 I O· Yes Non-Adjustable: 1.15· bend Yes Pad 8.250 in Th No No No Rtr Noz 1 Size 132's Ibf Motor Stalled: No Float Valve: No DP Filter: No 0.37· 1 0.68· 1 "/100' WOB (klbs) 5 5 Arr Ret Yes Yes Prev JoblWell Hrs Drilling Hrs Circ Hrs Reaming Hrs Total Hrs This Run New Cumulative Hrs 0.00 1.13 0.18 0.00 1.31 1.31 (ft/hr) ROP Oriented (fflhr) o ROP Rotated 124 213 Motor Tested Post-Run No Dump Sub Operating N/A Flow 1 : gpm Flow 2 : gpm Drlveshaft Rotation Observed Bearing Leakage Observed Driveshaft Rotated to Drain Mud Fluid Flushed ............................................................... Date: with: Brg Play Pressure 1 Pressure 2 mm psi psi .............................................- I I ····,~~-:;~~~:~~~I <I MOTOR PERFORMANCE REPORT Motor Serial # : 800306 Directional Driller(s) : Lee Martin Location : Ataruq # 2 Well : Ataruq # 2 Depth In/Out: 216 / 3350 ft Application Details : ,;-,,-,,:_,-''''--'''.;'',;.'-,';:---''';.;---'''' ..." Make : HUGHES Type: Pre Existing Hours From Other Wells: Prev Drilling Hrs : 1.13 Prev Reaming Hrs : Jet Sizes (132's) : 3x20, 1x12 TFA : I I I I I I I I I I I I I I I I I . . : l'/[,)(,];:.e{')~I¡¡[CiIJ;:.f~'n')~. u~ Sœb ø L...Stab"P,",S.b ~ --- MotOf Top --- Pad Bend (Housing) I 1) -:- I I I t11234567 Steeve Tool ., --- - . , :' '-'-'.: " - - .~_. '. '\ .[~}(~];:I;:~IN..'~'Î.. .... . Max Dogleg While Rotating Max Dogleg Overpulled In Max Dogleg Pushed Through Hole Azimuth Start / End Interval Oriented / Rot. Jarring Occured : No Diff Press (psi) Motor Tested Pre-Run Dump Sub Operating N/A Flow 1 715 gpm Flow 2 gpm Drlveshaft Rotation Observed Bearing Leakage Observed - ;.- :,j"" ,'-.:,--. ",'--' - -.,-,,--.,-...." .-.' :" . .~,.lIJ~t~~~,illf:~· -.,,"< Base: Water % Oil/Water : !. ~:: ;:~i!.];:~I'I'~~~[~=leI.]I'1I\'II::~~¡... Problem Perceived No Performance Motor : Yes Operator Rig Bit Run # Date In/Out KerrMcGee 27-E 2rr1 BHA# : 2 4/4/2005 / 4/6/2005 Motor Run #: 2 Hole Size: 12.250 in , , From Bit (ft) Type 1 3.84 Yes Stab: 4 I O' 2 10.83 Bent Housing Yes Non-Adjustable: 1.15' bend 3 11.72 Housing Tool Used Yes Pad 8.250 in Th 4 32.17 Stator Elastomer 5 Bent Sub 1 2nd Bent Hsg No 6 35.01 Lower String Stab Yes Stab: I 7 Upper String Stab No 12.000 12.000 Additional Features Flex Collar : No Short Brg Pack : No Brg Cfg (Off/On) Lobe Cfg Arr Rat Yes Yes Rtr Noz 1 Size 132's "-. : - ". '. -:...' ,.~. . .....',., "." .... ;",..'--.," . ."::-':"...;.~>;'. "".: -, ·/100' ·/100' ·/100' 224.60' 1 5.58' 850 / 2284 ft RPM Force Motor Stalled: No Float Valve; No DP Filter: No 0.68'/42.14' 1 ·/100' Prey Job/Well Hrs Drilling Hrs Circ Hrs Reaming Hrs Total Hrs This Run New Cumulative Hrs (ft/hr) 1.31 23.61 12.73 2.00 38.34 39.65 (ft/hr) Ibf Force Ibf Inc Start / End Dlréctional Perf Ori 1 Rot Rotn Torque (ft-Ibs) 3538 8000 Drag Up/Dn WOB (klOO) 17 30 Bit, MWO Motor Tested Post-Run mm Dump Sub Operating N/A Brg Play mm 950 psi Flow 1 : gpm Pressure 1 psi Pressure 2 psi Flow 2 : gpm Pressure 2 psi No Driveshaft Rotation Observed No No Bearing Leakage Observed No Driveshaft Rotated to Drain Mud No Fluid Flushed 0.00 1.031 No of Runs This Bit: 2 in' Gage Length: 6.000 in In Out N EW 4 WT G E 0 ER TO 4 Problem Date Tandem Motor Service Interrupt LlH No No Service Interrupt Hrs PPR Ref # No Motor did very well, Hrs on this motor are 23.61 Date: ..,.....................,..,.................. Customer Representative's Signature (optional) ; ............................................................... '~~~~~:~~~I' Motor Serial # : 700032 Directional Driller(s) : Lee Martin Location : Ataruq # 2 Well Ataruq # 2 Depth In/Out 3350 / 7400 ft Application Details 1"lr.){']~"'I{')~I¡¡[tiIJ:~~'.(']~. I I I I I ~... ~ l...Slabo<P""S'b - I I I I I I I I I I I I I I MotQrTo) ~ -~~-r f ~---, ... I I - ¡-I. .1234567 , I I I I I P.. Bend (Housing) SleeveTod ; . ,":-', ,.,-.-, "."_""-','0.,-,::-', ,.._:'c· , "';'I[."{;i~~~~iJ'~;~~~,tÎ. Max Dogleg While Rotating Max Dogleg Overpulled In Max Dogleg Pushed Through Hole Azimuth Start / End Interval Oriented' Rot. Jarring Occured : No Diff Press (psQ '.. Motor Tested Pre-Run Dump Sub Operating N/A Flow 1 gpm Flow 2 gpm Driveshaft Rotation Observed Bearing Leakage Observed - -.' ., _"IUJ~'J~'}.".. . Base: Water % OlllWater : : 5x12 ~:.l~~~¡;(')~W'~'~(~::I:I{'J\llh'll:m ..- Problem Perceived No Performance Motor No Operator : Rig : Bit Run # : Date In/Out : KerrMcGee 27-E 3 BHA # : 3 4/8/2005 / 4/12/2005 Motor Run #: 3 Hole Size: 8.500 in From Bit (ft) Component 1 3.00 Sleeve Stab/Pad Yes 2 6.90 Bent Housing Yes Non-Adjustable: 1.22° bend 3 6.57 Housing Tool Used Yes Pad 7.300 in Th 4 25.63 Stator Elastomer 5 Bent Sub / 2nd Bent Hsg No 6 27.98 Lower String Stab Yes Stab: 4 I 0° 7 Upper String Stab No 8.380 8.380 Additional Features Flex Collar : No /32's Arr Ret Yes Yes Short Brg Pack : No Lobe Cfg Rtr Noz / Size '/100' '/100' 5.58° /6.33° 388 13662 ft Force Ibf Force Ibf Inc Start / End Directional Perf Orll Rot 42.14° 135.71° 10.70 '/100' Reaming Hrs Total Hrs This Run New Cumulative Hrs Drag UplDn (Ibf) / / ROP Oriented (fVhr) 85 126 WOB (klbs) 11 25 ROP Rotated 121 241 Brg Play Pressure 1 Pressure 2 No No Motor Tested Post-Run No Dump Sub Operating N/A Flow 1 : gpm Flow 2 : gpm Driveshaft Rotation Observed Bearing Leakage Observed Driveshaft Rotated to Drain Mud psi psi with: Brg Play Pressure 1 Pressure 2 mm mm psi psi Problem Date Tandem Motor Yes Customer Representative's Signature (optional) : ......,........................................................ Date: ............................................. . I I Jar Serial #: 14161562 Directional Driller(s): Ken Harding Location: Ataruq # 2 Well: Ataruq # 2 Job # : AK-MJ-0003637543 Operator : KerrMcGee Rig: 27-E Well Type : Deviated I Sper'lf""'y-sun C.RI L.L.I N G SERVII:: E S I Date InlOut : 4/12/200E/ 4/13/2005 Inc In/Out: 35.71° 135.71° I "'.::-..é.:"·' .......; '.:c·.·,:::·-··..··:·,··,·"'-··...>:··'. :',',-,'",:-:':>",-;:: .,....'.:-".::-.; '- -.." '-'.. .. .......... .... ... ,.,., .. .,,, .. '. .:¡:¡II(.,~'~(.]~. 1]=1 '~'I"'. I Depth InfOut : 7400 / 7400 ft Mud Wt: 11.4 ppg Avg Flow Rate: gpm Pressure Drop Below Jar: psi Hours Below Rotary: 14.50 I I BHA Elements Below Jar Bit, Stab, 1>Ç DC, Stab, 1x DC, 1x DC, Stab, 15x HWDP BHA Elements Above Jar [Jar], 14x HWDP I Typical Drag Up Typical Drag Down Ibf Ibf I I No. ofTimes Jarred Up (estimate) No. of Times Jarred Down (estimate) Wt. Indicator Reading to Jar Up Wt. Indicator Reading to Jar Down Ibf Ibf Problem Perceived: No I I I I I I I Customer Representative's Signature (optional) : ................................................................ Date: ......................................... I Please fax copy of this report to DTDG, Aberdeen: (44) 1224727324. I I I I I I I I I I I I I I I I I I I CRll...l...l N G SeFlVI c: e 5 Jar Serial #: 14161562 Directional Driller(s): Lee Martin Location: Ataruq # 2 Well: Ataruq # 2 Job # : AK-MJ-0003637543 Operator : KerrMcGee Rig: 27-E Well Type : Deviated Date In/Out : 4/4/2005 I Inc In/Out: 0.68° /42.14° 4/6/2005 .,.....,..;,.....-.:..,.....-..-.,..._,<:.-.,.,.:.,,'-" "", ...... "" - ',:'-:,-,-' ....._.-. u",_.."""'--· ....... .. .. '.. - - '," --~.., ,",'~; ',.,. .. .....> .,'-'.. ...., . I~':.I:.III["~'. [.J~"]::¡'~' I.... Depth In/Out: 216 / 3350 ft Hours Below Rotary: 52.18 BHA Elements Below Jar Bit, PDM, Stab, MWD, MWD, MWD, MWD. Sub. 1x DC, 1x DC, 1x DC. Sub, 14x HWDP BHA Elements Above Jar [Jar], 15x HWDP Typical Drag Up Typical Drag Down 51bf 51bf No. of Times Jarred Up (estimate) No. of Times Jarred Down (estimate) o o Wt. Indicator Reading to Jar Up Wt. Indicator Reading to Jar Down Ibf Ibf Problem Perceived : No Jar hrs in = 0 Jar hrs out = 22.10 Customer Representative's Signature (optional) : Date: ......................................... ................................................................ Please fax copy of this report to DTDG, Aberdeen: (44) 1224 7'Z. 7324. I I I I I I I I I I I I I I I I I I I Sper"r"v-sun CRIL..L..IN13 seRVices JarSerial#: 14161562 Directional Driller(s): Lee Martin Location: Ataruq # 2 Well: Ataruq # 2 Job # : AK-MJ-0003637543 Operator : KerrMcGee Rig: 27-E Well Type : Deviated 1f,;I:J .["~'i[']~' .]::t'~'I". Date In/Out : 4/8/2005 / 4/12/2005 Inc InlOut : 42.14° /35.71° Depth In/Out: 3350 / 7400 ft Mud Wt: 11.4 ppg Avg Flow Rate: 612 gpm Pressure Drop Below Jar: 800 psi Hours Below Rotary: 92.74 ~;:-o:,~- :.;-- _'-, -,.' < ,',",,'..:::;; . ,- .'.-...-.... "'," "-- ·0'·'.··· " -,--. " "." " ..', ",',-,- " -",", ", "". .. -" -,.. ','- .... .", .~~It::h'I:mll.]::t'~'I".' ... BHA Elements Below Jar Bit, PDM, Stab, MWD, MWD, MWD, MWD, Sub, 1x DC,1x DC, 1x DC, 15x HWDP BHA Elements Above Jar [Jar], 14x HWDP Typical Drag Up Typical Drag Down 20lbf 20lbf Jars in = 22.10 Jars out = 56.51 Customer Representative's Signature (optional) : Date: ......................................... ................................................................ Please fax copy of this report to DTDG, Aberdeen: (44) 1224 7Z7324. I I Sperry·SL-n I I I End of Well Report for I Kerr McGee I Rig: Nabørs 27E Well: Ataruq #2 I Field: Exploration Country: USA I Job No: AK-MW-0003637549 Date: 02-Apr-05 I API No: 50-103-20508-00 I I I I I I I I . ~ - ~. r ntr I 1~.III.í . 1 I I I I I I I I I I I I I I I I I I I I HALLIBURTON Sperry-Sun General Information Company: Rig: Well: Field: Country: API Number: Sperry-Sun Job Number: Job start date: Job end date: North reference: Declination: Dip angle: Total magnetic field: Date of magnetic data: Wellhead coordinates N: Wellhead coordinates E: Vertical section direction: MWD Engineers: Company Representatives: Company Geologist: Lease Name: Unit Number: State: County: Job No.: AK-MW-QQ03637549 Kerr McGee Nabors 27E Ataruq #2 Exploration USA 50-103-20508-00 AK-MW-0003637549 02-Apr-05 12-Apr-05 True 24.081 deg 80.700 deg 57567.883 nT 02-Apr-05 70 deg. 19 min 40.480 sec North 150 deg. 9 min 23.010 sec West 6.950 deg J. Sack Y. Peltekian J. Mosley T. Hillegeist Exploration 117 Alaska North Slope Borough Well No.: Ataruq #2 End of Well Report Page 1 I I I I I I I I I I I I I I I I I I I HALLIBURTON Sperry-Sun Operational Overview Sperry-Sun Drilling Services was called out on April 1 2005, to perform MWD and LWD services on the exploration well Ataruq #2, with API# 50-103-20508-00. MWD Run 100 (No MWD Present): Drilled to 217' MD/217' TVD. POOH to pickup BHA. MWD Run 200 (8" Dir/GR/Res/CTN/SLD): Spudded well from surface. Drilled 12.25" hole to 9 5/8" casing point at 3350' MD/3098' TVD. POOH to run casing. MWD Run 300 (6" Dir/GR/Res/CTN/SLD/PWD): Drilled 8.5" hole out of 9 5/8" casing shoe to TO at 7400' MD /6124' TVD. POOH to run logs. Job No.: AK-MW-0003637549 Well No.: Ataruq #2 End of Well Report Page 2 - - - - - - - - - - - - - - - - - - - HALLIBURTON Sperry-Sun Summary of MWD runs Run Bit Hole MWD I Start End Drill/Wipe Run Start Run End SRT Oper. Circ. ¡Max. Servo Trip for Failure No. No. Size Service I Depth Depth Distance Date Time Date Time Hrs. Hrs. Hrs. ¡Temp. Int. MWD Type (in) (ft) (ft) (ft) l(degF) 107.00 i 217.00 0.00 I 3350.00 i 7400.00 ¡ 4050.00 06-Apr-0520:38 12-Apr-0514:00 137.36 ¡ 101.69 i ~"t'~"~\1""iíJIL.= -'liD.. =~~~. ....... ~·i1r---w-.._~---..."',:J~.· ~ -.--..__.~~'~m""'~~(IM"¡¡¡¡ . , ~ ¡ , ·~·~lr~[··-jì;.;a:;;! ·bì"~¡¡':;:ro.:_~_ ... ....... æ .:n~,", 1111. i !' ¡ 1: ....~~~~~!~~ P"~t'i~:¡:IL:t;. I I! I ¡ TOTALS ====> 7293.00 192.57 179.29 106.26 o o Job No.:AK-MW-0003637549 Well No.: Ataruq #2 End of Well Report Page 3 I I I I I I I I I I I I I I I I I I I HALLIBURTON Run Time Data MWD Run: 0100 Rig Bit No: 1 Hole Size: 12.25 in Run Start: 02-Apr-05 18:45 Run End: 02-Apr-05 18:45 BRT Hrs : 0.00 Cire. Hrs : 0.00 Oper. Hrs : 0.00 MWD Schematics Sperry-Sun Bitrun Summary Drilling Data Mud Data Start Depth : 107.00 It Mud Type: End Depth: 217.00 It Weight I Vise: 0.00 ppgl 0.00 spqt Footage : 110.00 It Chlorides: 0.00 ppm Avg. Flow Rate: 0.00 gpm PV IYP: 0.00 ep I 0.00 Ihf2 Avg. RPM : 0.00 rpm Solids/Sand : % I % Avg. WOB : 0.00 klb %Oill O:W : % I Avg. ROP : 0.00 fph pHlFluid Loss: 0.00 pH I 0.00 mptm Avg. SPP : 0.00 psig Max. Temp. : 0.00 degF BHA Schematics Component Length 0.0. 1.0. (It) (in) (in) (4) (3) (2) (1 ) Comments No MWD present. Drilled rat hole to pickup BHA. Job No.: AK-MW-0003637549 04. HWDP 181.81 5.000 3.000 03. Cross Over Sub 2.46 7.625 2.830 02. 8" SperryDrill Lobe 7/8 - 3.0 5 31.02 8.000 5.250 01. Tricone 1.15 12.250 3.500 MWD Performance Tool 00 /Type: 8.00 in I MPT MWD Real-time%: 0.00 % MWD Recorded%: 0.00 % Min. Inc. : 0.00 degl 0.00 It Max. Inc. : 0.00 degl 0.00 It Final Az. : 0.00 deg Max Op. Press. : 0.00 psig Well No.: Ataruq #2 End of Well Report Page 4- I I I I I I I I I I I I I I I I I I I HALLIBURTON Comments Drilled to 9 5/8" casing point @ 3133' MD / 2938' TVD. HCIM HRS.= 8.47 CTN = 0099NN, ASLD = 161568 MWD Run: Rig Bit No: Hole Size: Run Start : Run End: BRT Hrs : Cire. Hrs : Oper. Hrs : (7) (6) (4) (3) (2) (1 ) Run Time Data 0200 2 12.25 in 04-Apr-05 07:17 06-Apr-05 14:30 55.21 38.90 77.60 MWD Schematics 7. SDC SN: 102373 6. CTN SN: 181127 101.49 ft From Bit 5. ASLD SN: 106001 83.97 ft From Bit 4. PM SN: 126846 65.55 ft From Bit 3. HCIM SN: 134513 2. EWR-P4 SN: 125791 49.39 ft From Bit 1. DGR SN: 076571 41.32 ft From Bit Sperry-Sun Bitrun Summary Drilling Data Mud Data Start Depth : 217.00 ft Mud Type: Water Based End Depth: 3350.00 ft Weight I Vise: 9.60 ppgl 48.00 spqt Footage: 3133.00 ft Chlorides : 35000.00 ppm Avg. Flow Rate: 790.00 gpm PV IYP: 13.00 ep 1 21.00 thf2 Avg. RPM : 120.00 rpm Solids/Sand : 5.2 % 1 4.0 % Avg. WOB : 20.00 klb %OiI/O:W : 0 % 1 0/92.00 Avg. ROP : 133.00 fph pH/Fluid Loss: 8.50 pH I 5.40 mptm Avg. SPP : 2200.00 psig Max. Temp. : 87.80 degF BHA Schematics (14) ;r J (13) , i (12) r (11 ) ~ . (10) I (9) ¡: (8) J :~ ~ (7) ~ ~ (6) ¡¡¡; ::t ...- iiI..: (5) r i (4) II (3) . (2) I (1 ) III Component I.D. (in) Length 0.0. (ft) (in) 14. Drill Pipe (E) 2200.00 5.000 4.276 13. HWDP 692.65 5.000 3.000 12. Drilling Jars 32.58 6.250 2.500 11. HWDP 181.81 5.000 3.000 10. Cross Over Sub 2.46 7.625 2.830 09. Flex Collar 31.03 8.000 2.940 08. Flex Collar 30.63 8.000 2.810 07. Flex Collar 31.03 8.000 2.810 06. Roat Sub 2.43 8.000 2.810 05. MWD 78.66 8.000 1.646 04. Cross Over Sub 2.57 7.960 3.250 03. Integral Blade Stabilizer 5.67 8.160 2.810 02. 8" SperryDrill Lobe 7/8 - 3.0 s 31.02 8.000 5.250 01. Tricone 1.15 12.250 3.500 MWD Performance Tool 00 /Type: 8.00 in 1 MPT MWD Real-time%: 97.00 % MWD Reeorded%: 100.00 % Min.lne. : 0.00 degl 0.00 ft Max. Inc. : 45.63 degl 2849.43 ft Final Az. : 5.85 deg Max Op. Press. : 1547.00 psig Job No.: AK-MW-0003637549 Well No.: Ataruq #2 End of Well Report Page 5 I I I I I I I I I I I I I I I I I I I HALLIBURTON Run Time Data MWD Run: 0300 Rig Bit No: 3 Hole Size: 8.50 in Run Start: 06-Apr-05 20:38 Run End: 12-Apr-05 14:00 BRT Hrs : 137.36 Circ. Hrs : 67.36 Oper. Hrs : 101.69 (9) MWD Schematics Sperry-Sun Bitrun Summary Drilling Data Mud Data Start Depth : 3350.00 ft Mud Type: Water Based End Depth: 7400.00 ft Weight / Vise: 10.10 ppg/ 51.00 spqt Footage : 4050.00 ft Chlorides: 38270.00 ppm Avg. Flow Rate: 600.00 gpm PV/YP: 18.00 cp / 20.00 Ihf2 Avg. RPM : 80.00 rpm Solids/Sand : 7.6 % / 0.8 % Avg. WOB : 10.00 klb %Oíl/O:W: N/A % / 0/89 Avg. ROP : 118.00 fph pH/Fluid Loss: 8.50 pH / 5.30 mptm Avg. SPP : 2400.00 psig Max. Temp. : 141.00 degF (13) ',;¡; I .' (12) r ]I (11 ) I 111 Ii (10) T I ã: (9) ;:". 'î'¡ I (8) , (7) I (6) I- (5) ~ ¡; Jí (4) ~ (3) I (2) I ;'L '~ ~ . (1 ) LÐ Comments Drilled 8" Hole to TD= 7400' MD / 6124' TCD CTN = 0008NN, ASLD = 126378 HCIM Amps Used= 15.01 ; SDC= 13.69 (8) (7) (6) 9. SDC SN: 093696 8. CTN SN: 10603656 (5) 94.28 It From Bit 7. ASLD SN: 198492 80.93 It From BR (4) 6. DM SN: 165877 63.40 II From BR 5. PM (3) SN: 165877 63.40 It From Bit 4. HCIM SN: 155497 (2) 3. PWD SN: 161847 I 50.89 II From Bit 2. EWR-P4 (1 ) I SN: 130935 If 42.59 It From Bit 1. DGR SN: 124725 34.84 II From Bit " Job No.: AK-MW-0003637549 BHA Schematics Component Length 0.0. (ft) (in) 1.0. (in) 13. Drill Pipe (E) 2570.00 5.000 4.276 12. HWDP 419.93 5.000 3.000 11. Drilling Jars 32.58 6.250 2.500 10. HWDP 454.53 5.000 3.000 09. Flex Collar 30.92 6.500 2.880 08. Flex Collar 31.06 6.500 2.940 07. Flex Collar 30.23 6.500 2.813 06. Float Sub 2.30 6.500 2.810 05. MWD 76.19 6.750 1.920 04. Cross Over Sub 2.19 6.750 2.810 03. Integral Blade Stabilizer 5.46 6.500 2.810 02. 8" SperryDrill Lobe 7/8 - 3.0 5 24.67 6.750 4.753 01. Tricone 0.96 8.500 3.000 MWD Performance TooIOD/Type: 6.75 in / MPT MWD Real-time%: 100.00 0/0 MWD Recorded%: 100.00 % Min. Inc. : 35.71 deg/ 7400.00 f1 Max. Inc. : 43.82 degl 5948.32 fi Final Az. : 6.33 deg Max Op. Press. : 3375.00 psig Well No.: Ataruq #2 End of Well Report Page 6 I Halliburton Global EFI I I (:dptpáI'1Y: P¡ê1'd: s.ite: Wêll; WêUþath: K~rr McGee Ätåruq Atartl<: , At:!!ru<:#g Ataruq #2 ])ate: 4/2i5/20d~ ... " Time: 15:$7:20 Page: 1 Co-orØinatë(NÍJJR.eference: Wëll: i\tärUq·#2, TrueNörth Vertical.(TVD)Refei'ênce: AtarlJq#2: 102:6 Sëction(VS) RÎÍferëñce: Wëll (O.OdN;O:OÖE,6.80AZi) SUi'veyÜUcuhìtiòIlMêthod: Minimum Curvature·, Db: Oracle Survey: Start Date: Campany: Engineer: Taal: Tied-tO': Field: Ataruq Map System:US State Plane Coordinate System 1927 Geo Datum: NAD27 (Clarke 1866) Sys Datum: Mean Sea Level Map Zane: Coardinate System: Geamagnetic Madel: Alaska, Zone 4 Well Centre bggm2004 Site: Ataruq Site Positian: Narthing: 5969528.36 fI Latitude: 70 19 40.485 N Fram: Map Easting: 480716.30 fI Langitude: 150 9 23.000 W Pasitian Uncertainty: 0.00 fI Narth Reference: True Graund Level: 0.00 fI Grid Canvergence: -0.15 deg Well: Ataruq #2 Slat Name: Well Pasitian: +N/-S 0.00 ft Narthing: 5969528.36 ft Latitude: 70 19 40.485 N +E/-W 0.00 ft Easting : 480716.30 ft Langitude: 150 9 23.000 W Pasitian Uncertainty: 0.00 ft Well path: Ataruq #2 Drilled Fram: Well Ref. Point 501032050800 Tie-an Depth: 0.00 ft Current Datum: Ataruq#2: Height 102.62 fI Above System Datum: Mean Sea Level Magnetic Data: 4/2/2005 Declinatian: 24.08 deg Field Strength: 57568 nT Mag Dip Angle: 80.70 deg Vertical Sectian: Depth Fram (TVD) +N/-S +E/-W Directian fI ft ft deg 0.00 0.00 0.00 6.80 Survey Program for Definitive Wellpath Date: 4/26/2005 Validated: Yes Versian: Actual From TO' Survey Toolcode ToO'l Name ft fI 146.15 7330.84 Ataruq #2 (146.15-7330.84) MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC Survey '-. MD Ihel Azitn TVD SysliV'ì>' N/S EIW M~pN MapE TöOl It d~g dèg ft fI ft ft ff ft 30.42 0.00 0.00 30.42 -72.20 0.00 0.00 5969528.36 480716.30 TIE LINE 146.15 0.71 218.66 146.15 43.53 -0.56 -0.45 5969527.80 480715.85 MWD+IFR-AK-CAZ-SC 239.04 0.67 226.67 239.03 136.41 -1.38 -1.20 5969526.98 480715.09 MWD+IFR-AK-CAZ-SC 333.82 0.57 226.04 333.80 231.18 -2.09 -1.94 5969526.28 480714.35 MWD+IFR-AK-CAZ-SC 422.06 0.71 216.14 422.04 319.42 -2.84 -2.58 5969525.53 480713.71 MWD+IFR-AK-CAZ-SC 514.99 0.84 219.97 514.96 412.34 -3.82 -3.36 5969524.55 480712.93 MWD+IFR-AK-CAZ-SC 601.09 0.82 218.11 601.05 498.43 -4.79 -4.15 5969523.58 480712.14 MWD+IFR-AK-CAZ-SC 692.39 0.79 224.71 692.34 589.72 -5.75 -4.99 5969522.62 480711.29 MWD+IFR-AK-CAZ-SC 782.96 0.76 222.52 782.90 680.28 -6.64 -5.84 5969521.74 480710.45 MWD+IFR-AK-CAZ-SC 874.53 1.05 218.98 874.46 771.84 -7.74 -6.78 5969520.64 480709.51 MWD+IFR-AK-CAZ-SC 960.01 1.25 227.98 959.93 857.31 -8.97 -7.96 5969519.41 480708.32 MWD+IFR-AK-CAZ-SC 1052.85 1.31 230.94 1052.74 950.12 -10.32 -9.54 5969518.07 480706.74 MWD+IFR-AK-CAZ-SC 1148.98 1.59 226.51 1148.84 1046.22 -11.93 -11.36 5969516.46 480704.91 MWD+IFR-AK-CAZ-SC 1242.78 1.79 225.50 1242.60 1139.98 -13.85 -13.35 5969514.54 480702.92 MWD+IFR-AK-CAZ-SC 1336.85 1.54 215.21 1336.63 1234.01 -15.91 -15.12 5969512.49 480701.14 MWD+IFR-AK-CAZ-SC 1432.68 2.07 230.01 1432.41 1329.79 -18.08 -17.19 5969510.33 480699.06 MWD+IFR-AK-CAZ-SC 1526.01 2.15 228.27 1525.68 1423.06 -20.33 -19.79 5969508.09 480696.46 MWD+IFR-AK-CAZ-SC 1623.58 2.30 228.58 1623.1 8 1520.56 -22.84 -22.62 5969505.58 480693.62 MWD+IFR-AK-CAZ-SC 1717.97 2.22 226.51 1717.49 1614.87 -25.35 -25.37 5969503.08 480690.87 MWD+IFR-AK-CAZ-SC I I Halliburton Global KerrMcGee mite: 4/26/2005 Time: 15:57:20 Page: 2 Ataruq Co"ordinå te(NE) Reference: Well: Ataruq #2. True North AtarlJC Vertical{FVD) Reference: Ataruq#2: 102.6 Ataruq #2 Section (VS) Reference: Well(0.OON,0.00E¡6.80Azi) Maruq #2 Survey Calculation Method: Minimum Curvature Db: Oracle MD Inel Azim TVD Sys TVD N/S E/W MapN MàpE Tool ft deg deg ft ft ft ft ft ft 1812.84 1.97 338.01 1812.33 1709.71 -25.10 -27.32 5969503.33 480688.92 MWD+IFR-AK-CAZ-SC 1906.46 7.53 7.49 1905.60 1802.98 -17.52 -27.12 5969510.91 480689.14 MWD+IFR-AK-CAZ-SC 1999.86 11.39 7.85 1997.71 1895.09 -2.31 -25.06 5969526.11 480691.24 MWD+IFR-AK-CAZ-SC 2094.43 14.30 10.37 2089.91 1987.29 18.43 -21.68 5969546.84 480694.67 MWD+IFR-AK-CAZ-SC 2186.87 17.37 12.54 2178.83 2076.21 43.14 -16.63 5969571.53 480699.78 MWD+I FR-AK-CAZ-SC 2281.99 20.98 13.42 2268.66 2166.04 73.57 -9.59 5969601.95 480706.90 MWD+IFR-AK-CAZ-SC 2375.23 24.25 15.03 2354.72 2252.10 108.31 -0.75 5969636.66 480715.83 MWD+IFR-AK-CAZ-SC 2470.04 29.20 15.70 2439.37 2336.75 149.40 10.56 5969677.72 480727.25 MWD+I FR-AK-CAZ-SC 2565.28 33.53 14.18 2520.68 2418.06 197.29 23.30 5969725.57 480740.11 MWD+IFR-AK-CAZ-SC 2659.74 37.99 11.91 2597.31 2494.69 251.06 35.70 5969779.30 480752.64 MWD+I FR-AK-CAZ-SC 2755.83 42.17 11.13 2670.82 2568.20 311.67 48.03 5969839.88 480765.13 MWD+IFR-AK-CAZ-SC 2849.43 45.63 10.99 2738.25 2635.63 375.36 60.48 5969903.53 480777.74 MWD+IFR-AK-CAZ-SC 2944.67 45.33 9.47 2805.03 2702.41 442.18 72.54 5969970.31 480789.97 MWD+IFR-AK-CAZ-SC 3036.21 45.15 7.77 2869.49 2766.87 506.44 82.28 5970034.54 480799.88 MWD+I FR-AK-CAZ-SC 3132.07 44.16 7.62 2937.68 2835.06 573.21 91.31 5970101.28 480809.07 MWD+IFR-AK-CAZ-SC 3227.17 42.34 6.67 3006.95 2904.33 637.86 99.42 5970165.90 480817.35 MWD+IFR-AK-CAZ-SC 3280.35 42.13 5.85 3046.32 2943.70 673.39 103.32 5970201.42 480821.34 MWD+IFR-AK-CAZ-SC 3401.90 42.15 5.38 3136.45 3033.83 754.55 111.30 5970282.55 480829.52 MWD+IFR-AK-CAZ-SC 3498.07 41.35 5.31 3208.20 3105.58 818.31 117.26 5970346.29 480835.65 MWD+IFR-AK-CAZ-SC 3588.83 40.59 4.69 3276.73 3174.11 877.59 122.45 5970405.55 480840.99 MWD+IFR-AK-CAZ-SC 3682.83 41.80 5.63 3347.46 3244.84 939.25 128.03 5970467.18 480846.73 MWD+IFR-AK-CAZ-SC 3778.29 41.32 5.59 3418.89 3316.27 1002.27 134.22 5970530.19 480853.08 MWD+I FR-AK-CAZ-SC 3871.66 42.62 6.17 3488.31 3385.69 1064.38 140.62 5970592.27 480859.64 MWD+I FR-AK-CAZ-SC 3961.62 41.73 5.82 3554.98 3452.36 1124.45 146.93 5970652.32 480866.10 MWD+IFR-AK-CAZ-SC 4056.74 41.14 6.15 3626.29 3523.67 1187.05 153.49 5970714.90 480872.82 MWD+IFR-AK-CAZ-SC 4152.70 42.48 6.67 3697.81 3595.19 1250.63 160.63 5970778.44 480880.13 MWD+IFR-AK-CAZ-SC 4248.81 43.69 7.74 3768.00 3665.38 1315.75 168.87 5970843.54 480888.54 MWD+I FR-AK-CAZ-SC 4343.36 42.99 7.79 3836.77 3734.15 1380.05 177.64 5970907.81 480897.47 MWD+IFR-AK-CAZ-SC 4437.80 43.80 7.01 3905.39 3802.77 1444.39 186.00 5970972.13 480905.99 MWD+IFR-AK-CAZ-SC 4533.04 43.20 6.69 3974.48 3871.86 1509.48 193.82 5971037.19 480913.97 MWD+IFR-AK-CAZ-SC 4626.72 42.69 6.82 4043.05 3940.43 1572.86 201.32 5971100.54 480921.64 MWD+I FR-AK-CAZ-SC 4721.29 41.77 6.05 4113.08 4010.46 1636.02 208.45 5971163.68 480928.93 MWD+I FR-AK-CAZ-SC 4814.26 42.84 6.41 4181.83 4079.21 1698.23 215.24 5971225.86 480935.88 MWD+IFR-AK-CAZ-SC 4909.24 42.22 5.86 4251.83 4149.21 1762.06 222.11 5971289.67 480942.91 MWD+I FR-AK-CAZ-SC 5002.24 43.43 6.76 4320.04 4217.42 1824.89 229.06 5971352.48 480950.03 MWD+I FR-AK-CAZ-SC 5095.18 42.64 6.05 4387.97 4285.35 1887.92 236.14 5971415.48 480957.26 MWD+I FR-AK-CAZ-SC 5188.62 43.79 6.31 4456.07 4353.45 1951.53 243.03 5971479.07 480964.32 MWD+I FR-AK-CAZ-SC 5282.76 43.12 5.98 4524.40 4421.78 2015.91 249.96 5971543.42 480971.41 MWD+I FR-AK-CAZ-SC 5366.23 42.35 6.55 4585.71 4483.09 2072.21 256.14 5971599.70 480977.74 MWD+I FR-AK-CAZ-SC 5471.94 41.53 5.84 4664.34 4561.72 2142.45 263.77 5971669.91 480985.54 MWD+I FR-AK-CAZ-SC 5568.15 42.97 6.28 4735.56 4632.94 2206.77 270.60 5971734.21 480992.54 MWD+IFR-AK-CAZ-SC 5662.33 42.14 5.91 4804.93 4702.31 2270.11 277.36 5971797.52 480999.47 MWD+I FR-AK-CAZ-SC 5757.45 41.33 5.56 4875.91 4773.29 2333.11 283.69 5971860.50 481005.96 MWD+IFR-AK-CAZ-SC 5852.50 41.99 5.83 4946.93 4844.31 2395.98 289.96 5971923.34 481012.39 MWD+IFR-AK-CAZ-SC 5948.32 43.82 6.38 5017.11 4914.49 2460.83 296.90 5971988.18 481019.50 MWD+IFR-AK-CAZ-SC 6043.30 43.10 5.78 5086.05 4983.43 2525.80 303.83 5972053.12 481026.59 MWD+IFR-AK-CAZ-SC 6137.93 43.23 6.46 5155.07 5052.45 2590.16 310.73 5972117.46 481033.65 MWD+IFR-AK-CAZ-SC 6232.24 44.14 6.95 5223.27 5120.65 2654.86 318.34 5972182.13 481041.43 MWD+IFR-AK-CAZ-SC 6326.23 43.22 6.92 5291.25 5188.63 2719.29 326.17 5972246.54 481049.43 MWD+I FR-AK-CAZ-SC 6419.52 42.60 6.14 5359.57 5256.95 2782.40 333.40 5972309.61 481056.82 MWD+IFR-AK-CAZ-SC 6513.93 42.14 6.66 5429.33 5326.71 2845.62 340.49 5972372.82 481064.07 MWD+I FR-AK-CAZ-SC 6605.48 40.92 6.39 5497.86 5395.24 2905.93 347.39 5972433.10 481071.12 MWD+I FR-AK-CAZ-SC I I· CÖn)P¡UIY: Fi6ld: Site: Well: WelIþ~th: Survey MD ft 6700.37 6794.44 6888.27 6982.87 7077.84 7172.55 7267.26 7330.84 7400.00 I K~Fr McGee Ataruq A\âti.Jq Atari.Jq#2 Ataruq#2 Incl deg 40.05 38.85 37.99 38.77 37.57 36.79 36.06 35.71 35.71 Azim deg 6.18 6.11 6.02 7.14 7.24 7.64 7.25 6.33 6.33 TVD Sys TV» ft ft 5570.03 5467.41 5642.67 5540.05 5716.18 5613.56 5790.34 5687.72 5865.00 5762.38 5940.46 5837.84 6016.67 5914.05 6068.18 5965.56 6124.33 6021.71 Halliburton Global Dâte: . 4/26/2005,.. . .. .. Time: 15:57:20 Page: 3 c;o-()rdìn~t~(NE):Reference: Wèll; Atáruq:#2, True· North Vertiçàlt'rvD)'~cferellce: Atàrúq#2:1.Q2.6 Section (VS)Reference: Well (O,OONóO.00E,6.80AZi) SurveyCà:lculà:tionMcthod: Minimum Curvature Db: Oracle N/S EIW MapN MalíE Tool ft ft ft ft 2967.16 354.13 5972494.31 481078.02 MWD+IFR-AK-CAZ-SC 3026.59 360.53 5972553.71 481084.57 MWD+I FR-AK-CAZ-SC 3084.57 366.69 5972611.67 481090.88 MWD+IFR-AK-CAZ-SC 3142.92 373.43 5972669.99 481097.77 MWD+I FR-AK-CAZ-SC 3201.15 380.77 5972728.20 481105.26 MWD+IFR-AK-CAZ-SC 3257.90 388.18 5972784.93 481112.82 MWD+IFR-AK-CAZ-SC 3313.66 395.47 5972840.66 481120.25 MWD+IFR-AK-CAZ-SC 3350.67 399.88 5972877.65 481124.75 MWD+IFR-AK-CAZ-SC 3390.79 404.33 5972917.76 481129.30 PROJECTED to TO I I I I I I I I I I I I I I I I I I I SSDS Job # Date Field Name Rig Name Well Identification Side Track 4 N o rthings Eastings Latitude Longitude Data Source SSDS MAGUTM State I Zone If no, be specific: Geomag. Values Dip Angle Total Intensity (nT) Declination (deg)* Convergence (deg)* * Where appropriate sperry-sun DRf LLI N G SEAVI c= e s SSDS GEOMAG. SHEET AK-MW-363754j4' 01-Apr-05 Exploration Nabors 27E Ataruq #2 No 5969528.00 M/ft* 480716.00 M/ft* 70: 19:40.482 N/S* 150:09:23.008 E/W* (y/n) BGGM2004 - NAD 27 Alaska / 4 Office Generated 80.700 57568 24.082 N/A Field Generated go. 10 Sr!5 &8 1.LJ.o8/ N/A SSDS District Supervisor SSDS Lead Engineer Date . 01-Apr-05 O¿ -11m. -ô>- I I I I I I I I I I I I I I I I I I I HAL,LIBiliATDN Sperry-Sun MWD/L WD After Action Review Employee Name: Sack, Peltekian Date: 4/13/2005 Well: Hole Section: Interm Atarqu #2 What went as, or better than, planned? Detection was good throughout the entire run. What experienced difficulty? Tools were never fully warmed up in the pipeshed, despite 5hrs under steam. No deck conf. test was obtained. Tools had to be steamed on surface and warmed in mud column. Recommendations? ~ Pipeshed should be properly bermed after rig move, especially when only one heater is present Were there any innovations and/or cost savings realized on this well? We read the toolstring while racked back in the derick after the run. This was done to reduce the time before casing was run in open hole. This was not standard practice and saved approx. 2 hrs. Sperry-Sun Confidential I I I I I I I I I I I I I I I I I I I HAiLLliB11I'A'TON Sperry-Sun MWD/L WD After Aétion Review Employee Name: Sack, Peltekian Date: 4/13/2005 Well: Ataruq #2 Hole Section: 8.5" What went as, or better than, planned? Detection was good for the entire run. What experienced difficulty? The primary computer crashed during the run causing 1.5 hrs downtime. Recommendations? The network situation between the loggers and MWD needs to be addressed. Both need to run off of one database, instead of merging the two. -J Were there any innovations and/or cost savings realized on this well? Encountered hole problems on the trip out and decided to read the tool while racked back in the de rick to cut surface time. This saved approx. 1.5 hrs of rig time. Sperry,Sun Confidential I I I I I I I I I I I I I I I I I I I HALLIBURTOI\J Sperry-Sun Directional Drilling After Action Review Employee Name: Lee Martin Date: 4-11-05 Well: Ataruq # 2 Hole Section: 12.250 What went as, or better than, planned: Surface went weÎI, even starting 38' behind the line at KOP, Drilled surface in less than 30.00 hrs to TD of 3350 and on target. Difficulties experienced: None Recommendations: None Innovatiòns and/or cost savings: Suggested running a MX-C1 bit on surface instead of GT-1 Bit, saving a second bit run and rig time on surface. Sperry-Sun Confidentìal I I I I I I I I I I I I I I I I I I I HALLIBURTON Sperry-Sun Directional Drilling After Action Review Employee Name: Ken Harding Date: 4/21/2005 Well: Ataraq #2 Hole Section: 8.5 What went as, or better than, planned: Drilled to TO with minimal corrective slides. Difficulties experienced: Attempted short trip from TD, pulled tight, backreamed to shoe. Recommendations: Innovations and/or cost savings: Sperry-Sun Confidential I I I I I I I I I I I I I I I I I I I HALLIBURTON Job No.: AK-MW-0003637549 Thank you for using Sperry-Sun Well No.: Ataruq #2 Sperry-iS un End of Well Report Page 10 dD:;- -0:3? HALLIBURTON Sperry-Sun Surface Data Logging END OF WELL REPORT Kerr McGee Oil and Gas Corp. ATARUQ #2 (; . I I I I I I I I I I I I I I I I I I I sper-r'v-sun C R I L..L..I N G 5 E R V I c: E 5 Surface Data Logging END OF WELL REPORT Kerr McGee Oil and Gas Corp. ATARUQ#2 I I I I T ABLE OF CONTENTS I I 1. General Information I 2. Daily Summary 3. Formation Tops I 4. Morning Reports I 5. Bit Record 6. Mud Reports I 7. Show Reports I 8. Survey Report 9. Days vs. Depth I 10. Formation Evaluation Logs I 11. Engineering Log I I I I I 5pe.....r...v- sun I ¡;;;RIL.L.IN~ 5EFHJIC:;E5 I I I I I I I I I I I I I I I I I I I GENERAL WELL INFORMATION Company: Rig: Well: Field: Borough: State: Country: API Number: Sperry-Sun Job Number: Job Start Date: Job End Date (TD): North Reference: Declination: Dip Angle: Total Field Strength: Date Of Magnetic Data: Wellhead Coordinates N: Wellhead Coordinates W: SDL Engineers: Company Geologist: SSDS Unit Number: Kerr McGee Corporation Nabors N27E Ataruq #2 Kuparuk North Slope Alaska United States 50-103-20508-00 AK-AM-0003637543 2nd April 2005 11th April 2005 True 24.081 deg 80.70 deg 57568 NT April 02, 2005 North 70 deg 19 min 40.4816 see East 150 deg 09 min 23.0084 sec Doug Wilson Mark Lindloff 1. Hillegeist 117 spel""'l"'V- sun t:lRII...I...IN~ 5eFHJIc:e5 I I I I I I I I I I I I I I I I I I I Ataruq #2 - Diary of Events 1 st April 2005 Arrived in Deadhorse and drove to Ataruq # 2 location. Not ready for Rig up, returned to Halliburton camp Prudhoe Bay. 2nd April 2005 Arrived on Ataruq location and began rigging up for mudlogging utilizing unit 117 in combination with MWD. 3rd April 2005 Prepared rig Nabors 27E to spud and finished rigup. 4th April 2005 Spudded Ataruq #2 well at 0308 hrs 04/04/05. 13 318" surface casing was set to 106.62' MD. Drilled 12 W' hole to 217' MD with bit #1 (Hughes MX-1, TFA=1.031 , 3x20,lx12jets) to get deep enough to bury Nuke tools. Picked up the rest ofBHA and MWD with nuke tools. Continued to drill 12 W' hole from 217' to 1878' MD at 780gpm, average ROP of 170 ft!hr. Lithology was comprised of gravels, sands, clays with minor lignite coal. No methane hydrates were observed at the base of the Permafrost ( 1490 ft MD). Maximum gas was 98 units from 1860' MD. Gas consisted primarily of methane with very minor ethane ( 10-20 ppm). Mud weight was 9. 6 ppg with viscosity 48 ( waterbased KCL polymer ). 5th April 2005 Drilled from 1878' MD to 3350' MD, 3098' TVD with 110 RPM, 800 gpm, 2170 psi at an average 100 ft!hr. Maximum gas was 321units at 3014'. Lithology in this interval consisted of sand, claystone, clay and gravel. Bit # 1 statistics = 3243 feet, 23.8 hours, 392.7 k revolutions with average ROP of 136 ft!hr. Ran carbide lag test to determine amount of washout in open hole. Calculated lag was 2860 strokes, with an observed carbide peak at 4547 strokes. Washout was calculated to approx 14.5" open hole volume. 6th April 2005 Circulated hole clean. Performed short trip to heavy weight drill pipe top (1544'). Very tight through the build section (approx. 1900 to 2850' MD). Maximum short trip gas recorded was 306 units. Tripped out of hole to run 95/8", 40 lblft ( special drift 8.75") casing. Rigged up and ran 9 5/8" casing. Mud weight for running casing was 1 0.0 ppg. 7th April 2005 Ran 95/8" casing. Landed casing at 3319' MD. Performed cement job as per plan and did not see any returns to surface. Displaced cement with Enviromul mineral oil based mud. Nippled down diverter and nippled up BOP stack. Prepared to test BOP's. 8th April 2005 Tested BOP's. Made up 8 W' BHA #3. Bit #2, HTC HCM605 with TFA= 0.4640 (5x11 jets). Picked up 5" drill pipe singles and tripped in hole to top of float collar. Displaced out Enviromul oil based mud with 10.1 ppg water based KCL polymer mud. Tested 9 5/8" casing - OK. 9th April 2005 Continued to pickup enough 5" drill pipe and made up stands. Drilled 20 feet of new formation to 3370' MD (3112.8' TVD). Performed Leak Off Test to I I I I I I I I I I I I I I I I I I I 13.5 ppg Equivalent Mud Weight (2185 psi). Drilled 8 W' hole from 3370' to 5080' MD at average Rap of 176 ft/hr with 600 gpm and 2560 psi. Lithology was 100% Siltstone at 5080' MD. Maximum gas was 585 units at 4924'MD. 10th April 2005 Drilled 8 W' hole to 5724' MD. Short tripped 2 stands. Maximum short trip gas was 2086 units. Drilled ahead to 6517' MD at average Rap of 128 ft/hr with 600 gpm and 2870 psi. Lithology was 55% Claystone, 20% Shale and 25% Siltstone at 6440' MD. Maximum gas was 3825 units at 5526' MD. Mud weight was increased to 10.6 ppg in anticipation ofHRZ formation. 11th April 2005 Drilled 8 W' hole to a total depth of7400' MD (6124' TVD) with an average Rap of 118 ft/hr pumping 540 gpm at 2400 psi. Lithology was 80% claystone, 10% shale and 10% sandstone at 7400' MD. Maximum gas was 2334 units at 6582' MD. Mud weight was increased to 11.4 ppg due to large caving shale at shakers. Bit #2 statistics= 4050 feet, 34.4 hours and 602k revolutions. Circulated bottoms up 3 times. Performed 20 stand short trip. While short tripping, 174 bbls lost to hole. 12th April 2005 Tripped out of hole to surface and stood back MWD. Removed nuke sources. Tripped in hole and washed to bottom. Maximum trip gas was 1389 units. Circulated the hole clean and tripped out of the hole. Rigged up to run electric wireline logs. 13th April 2005 Ran electric wireline logs. 14th April 2005 Ran electric wireline logs. I I I GEOLOGIST FORMATION TOPS I MD TVD TVD SS I BASE PERMAFROST 1490 1490 1387.4 SCHRADER BLUFF 1627.4 1730 1730 I SCHRADER OA 1852 1851 1748.4 I TABASCO 3130 2937 2834.4 COLVILLE 3202 2988 2885.4 I TARN 5800 4908 4805.4 I MORAINE 6565 5466 5363.4 HRZ TOP 6748 5605 5502.4 I HRZ BASE 7010 5810 5707.4 TOP KALUBIK I KUPARUK "D" 7080 5868 5765.4 I KUPARUK "C" 7195 5958 5855.4 LCU 7205 5966 5863.4 I KUP ARUK "A" 7205 5966 5863.4 I KUP "A" BASE 7249 6002 5899.4 I I I I I I I I I I I I I I I I I I I I I Customer: Well: Area: Lease: Rig: Job No.: Kerr McGee Ataruq #2 North Slope NW Milne Point Nabors 27E AK-AM-3637543 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: spe............v-sun CRIL..L..INti SERVICES Mudlogger's Morning Report 1 4/3/2005 o o RIH Mosley/Ross Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 0 ftIhr 0 ftIhr ( 0 ftIhr @ 0 Pump 1 0 spm Flow rate 0 gpm Gas* 0 units 0 unit! ( 0 units @ 0 Pump 2 0 0 gps Temp Out Deg F ( deg F @ Pump Liner 7" x 12 in. SPP 0 9.10 ppg 9.10 ppg -- ml HTHP 0.0 m Mud Wt at Max Gas Gels 0 \ 0 \ 0 ES 0.0 Sd ppg o % Mud Wt In Mud Wt Out Visc 0 secs API filt PV 0 cp YP 0 Ibs/100ft2 Bit No.: Wt On Bit: Jets: 3 x 20 -- Total Revs on Bit: 1 x 12 x TFA: 0.6280 -- Footage for Bit Run Type: o RPM: MX-1 o Bit Size: 12 1/4 Hrs. On Bit: Trip Depth: Short Trip Depth Tight Spots: ft Trip Gas: ft Short Trip Gas: / I / Mud Cut: Mud Cut: ppg Trip CI: ppg Short Trip CI: Feet of Fill on Bottom: % sst o % clyst % o % ent Lithology: Sltst Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft ft ft ft ft ft units units units ppg ppg ppg Drilling Breaks Drill Rate during Depth Gas during after before after before to to to to ppm ppm o ft % units units units ppg ppg ppg % Lithology Sltst Sst Ls Cly 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: very fine filings oz. 24 hr Recap: Rigged up Unit, Calibrated Equipment, Getting ready to spud. . - * 2 Sample catchers on Location: Jeremy McNaught, Larry Moberg Daily cost: Full Mudlogging + 2 Sample Catchers ($275.00 I man/day) + Pit Monitor-3 extra pits Daily cost: = $3025.00 + $550.00 + $60 = $ 3635.00 Logging Engineer: Doug Wilson I Mark Lindloff * 10000 units = 100% Gas In Air I I I I I I I I I I I I I I- I I I I I ". Mudlogger's Morning Report Customer: Well: Area: Lease: Rig: Job No.: Kerr McGee Ataruq #2 North Slope NW Milne Point Nabors 27E AK-AM-3637543 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 2 4/5/2005 1878 1878 Drilling MosleylRoss spe....,....,v-sun [J AI L-L- I N I:i 55 E A V I c: E 55 -- Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 177 fUhr 199 fUhr ( 593 fUhr @ 492 Pump 1 60 spm Flow rate 780 gpm Gas* 12 units 12 unit~ ( 98 units @ 1860 ) Pump 2 61 13 gps Temp Out Deg F ( deg F @ ) Pump Liner 7" x 12 in. - SPP 1658 . .. ~ Mud Wt In Mud Wt Out 9.60 9.60 ppg ppg Visc 0 secs PV 0 cp YP API filt - o Ibs/100ft2 ml HTHP 0.0 m Mud Wt at Max Gas _ppg Gels 0 \ 0 \ 0 ES 0.0 Sd 0 % - - -- -- 11 Type: RPM: MX-1 35 Bit Size: Hrs. On Bit: 12 1/4 Jets: 3 x 20 Total Revs on Bit: 1 x 12 x TFA: 0.6280 -- Footage for Bit Run 1878 Bit No.: Wt On Bit: 1 Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm - Short Trip Depth ft Short Trip Gas: Mud Cut: ppg Short Trip CI: ppm - Tight Spots: 1 / 1 Feet of Fill on Bottom: 0 ft vurrent Lithology: 0 % Sltst 80 % sd 20 % cly % % sh - - - - Connection Gas and Mud Cut ft units ppg ft units ppg - - - - ft units ppg ft units ppg - - - - ft units ppg ft units ppg It. - - - - ·_IIIIIIIIIII -¡.... before Drill Rate during after before Gas during afte r ft units ppg - - ft units ppg - - ft units ppg - - . - % Lithology Sltst Sst Ls Cly - - - - - - - - - - - - - - - - Drilling Breaks Depth to to to to 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: very fine filings oz. 24 hr Recap: Drilling ahead F/140 T/1878, No hydrates were observed while drilling. Callibrated H2S sensor. * 2 Sample catchers on Location: Jeremy McNaught, Larry Moberg Daily cost: Full Mudlogging + 2 Sample Catchers ($275.00 I man/day) + Pit Monitor-3 extra pits Daily cost: = $3025.00 + $550.00 + $600 = $ 3635.00 Logging Engineer: Doug Wilson I Mark Lindloff * 10000 units = 100% Gas In Air I =~ I I I I I I I I I I I I I I I I I I spe....,....,v-sun CRI L...L...I N G 5ERVI c: E 5 Customer: Well: Area: Lease: Rig: Job No.: Mudlogger's Morning Report Kerr McGee Ataruq #2 North Slope NW Milne Point Nabors 27E AK-AM-3637543 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 3 4/6/2005 3350 1472 Drilling Mosley/Ross Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 0 fUhr 156 fUhr ( 755 fUhr @ 2119 Pump 1 0 spm Flow rate 0 gpm - Gas* 0 units 86 unit~ ( 321 units @ 3014 ) Pump 2 0 0 gps - Temp Out Deg F ( deg F @ ) Pump Liner 7" x 12 in. - SPP 0 Mud Wt In 9.80 ppg Visc 0 secs API filt ml HTHP 0.0 m Mud Wt at Max Gas ppg - - Mud Wt Out 9.80 ppg PV 0 cp YP 0 Ibs/100ft2 Gels 0 \ o \ 0 ES 0.0 Sd 0 % - - - - - - Bit No.: Wt On Bit: '~-'.. W 1 Type: RPM: MX-1 Bit Size: Hrs. On Bit: 12 IT ;~;::\Þ'''~;:;'~~~Mc~~ . . . .". Trip Depth: Short Trip Depth Tight Spots: ft ft Trip Gas: Short Trip Gas: 1 / 35 % Sltst 25 Current Lithology: - - 121/4 23.6 x TFA: 0.6280 -- Footage for Bit Run 3350 Jets: 3 x 20 Total Revs on Bit: 1 x 12 - 382 Mud Cut: Mud Cut: ppg Trip CI: ppg Short Trip CI: Feet of Fill on Bottom: ppm ppm 0 ft % - - - 1 % Grav - clyst ,,-~.III % 5 sd 35 % Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg - - - - - - ft units ppg ft units ppg ft units ppg - - - - - - ft units ppg ft units ppg ft units ppg - - - - - - Drilling Breaks 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: very fine filings "","" Depth Drill Rate during before to to to to .' after Gas during % Lithology after Sltst Sst Ls Cly - - - - - - - - - - - - - - - - _..~, L::' oz. ,~ ~"'···_H before 24 hr Recap: Drilling ahead F/1878 T/3350, No hydrates were observed while drilling. Did Carbide test. Calc strokes were 3193, Actual were 4547. Currently Short tripping to shoe * 2 Sample catchers on Location: Jeremy McNaught, Larry Moberg Daily cost: Full Mudlogging + 2 Sample Catchers ($275.00 I man/day) + Pit Monitor-3 extra pits Daily cost: == $3025.00 + $550.00 + $60 == $ 3635.00 Logging Engineer: Doug Wilson 1 Mark Lindloff * units == 100% Gas In Air 10000 ~. I I I I I I I I I I I I I I I I Ii I I spe.....,.....,v-sun [J R I L.L.I N Gi 5 E R V I c: E 5 Customer: Well: Area: Lease: Rig: Job No.: Mudlogger's Morning Report Kerr McGee Ataruq #2 North Slope Kuparuk Nabors 27E AK-AM-3637543 ,. "'.. Current 24 hr Avg 24 hr Max R.O.P. 0 fUhr 0 fUhr ( 0 fUhr @ 0 Gas* 0 units 16 unit! ( 306 units @ 3350 Temp Out 68 Deg F ( deg F @ Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 4 4/7/2005 3350 o Running Casing Mosley/Ross - ... Pump and Flow Data Pump 1 0 spm Flow rate 0 gpm ) Pump 2 0 0 gps ) Pump Liner 7" x 12 in. - SPP 0 10.00 ppg 10.00 ppg - API filt ~ ml HTHP 0.0 m Mud Wt at Max Gas _ ppg YP 25 Ibs/100ft2 Gels 8 \ 21 \ 22 PH 8.1 Sd 2 -- -- Mud Wt In Mud Wt Out Visc 54 secs PV 25 cp Bit No.: 0 Type: Wt On Bit: 0 RPM: Trip Depth: ft Short Trip Depth 1544 ft Tight Spots: 1 '¡ []I . [flll ;m<J<~"-'.':. ... 35 % y: - o Bit Size: Hrs. On Bit: - -,"," ___: lIB o 0.0 % Jets: 0 x 0 Total Revs on Bit: o x 0 - o x TFA: 0.0000 Footage for Bit Run 0 ~ Trip Gas: Mud Cut: ppg Trip CI: ppm - Short Trip Gas: 306 Mud Cut: ppg Short Trip CI: ppm - I 1 Feet of Fill on Bottom: 0 ft Sltst 25 % sd 35 % clyst 5 % Grav % - - - ~ ~~~ J ..,^, ".I.~;J_ "'~_.. Connection Gas and Mud Cut ft units ppg ft units ppg - - - - ft units ppg ft units ppg - - - - ft units ppg ft units ppg - - - - Depth Drill Rate during before to to to to Drilling Breaks after before ~~ -- 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: very fine filings ft ft ft units - units - units -ppg -ppg ppg - - Gas during % Lithology afte r Sltst Sst Ls Cly - - - - - - - - - - - - - - - - I oz. 24 hr Recap: Circulate hole clean, Short trip to the HWDP, very tight through the build section.. Short trip Gas was 306 units. * 2 Sample catchers on Location: Jeremy McNaught, Larry Moberg Daily cost: Full Mudlogging + 2 Sample Catchers ($275.00 / man/day) + Pit Monitor-3 extra pits+Geo Comp Daily cost: = $3025.00 + $550.00 + $60 + $100= $ 3735.00 Logging Engineer: Doug Wilson / Mark Lindloff . * units = 100% Gas In Air 10000 I I I I I I I I I I I I I I I I I I I sper"r"v-sun CRIL...L...ING SERVICES Customer: Well: Area: Lease: Rig: Job No.: Mudlogger's Morning Report Kerr McGee Ataruq #2 North Slope Kuparuk Nabors 27E AK-AM-3637543 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 5 4/8/2005 3350 o Testing BOPs Mosley/Ross Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 0 fUhr 0 fUhr ( 0 fUhr @ 0 Pump 1 0 spm Flow rate 0 gpm - Gas* 0 units 0 unit! ( 0 units @ 0 Pump 2 0 0 gps - Temp Out 68 Deg F ( deg F @ Pump Liner 6.5" x 12 in. SPP 0 Mud Wt In Mud Wt Out 10.00 ppg 10.00 ppg Visc 54 secs PV 25 cp API tilt 8.2 ml HTHP YP 25 Ibs/100ft2 Gels -- " Bit No.: Wt On Bit: o Type: RPM: o Bit Size: Hrs. On Bit: o Trip Depth: Short Trip Depth Tight Spots: ft Trip Gas: ft Short Trip Gas: 1 / 35 % Sltst 25 % 0.0 m Mud Wt at Max Gas 8 \ 21 \ 22 PH o 0.0 8.1 Sd ppg 2 % o x 0 o x TFA: 0.0000 -- Footage for Bit Run 0 Jets: 0 x 0 -- Total Revs on Bit: Mud Cut: Mud Cut: ppg Trip CI: ppg Short Trip CI: Feet of Fill on Bottom: sd % Grav 35 % clyst 5 ft ft ft ppg ppg ppg Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft ft ft units units units Depth Drill Rate during before to to to to Drilling Breaks after Gas during after before 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: very fine filings oz. ppm ppm o ft % units units units ppg ppg ppg % Lithology Sltst Sst Ls Cly 24 hr Recap: Run 9 5/8" casing.Landed casing 3319' MD. Cemented and did not see returns at the surface. Nipple down Diverter, Nippled up BOP stack. Currently pre ping to test BOP's * 2 Sample catchers on Location: Jeremy McNaught, Steve Jenkins Daily cost: Full Mudlogging + 2 Sample Catchers ($275.00 / man/day) + Pit Monitor-3 extra pits+Geo Comp Daily cost: = $3025.00 + $550.00 + $60 + $100= $ 3735.00 Logging Engineer: Doug Wilson / Mark Lindloff * 10000 units = 100% Gas In Air I I I I I I I I I I I' I I I I I I I I m'· Mudlogger's Morning Report Customer: Well: Area: Lease: Rig: Job No.: Kerr McGee Ataruq #2 North Slope Kuparuk Nabors 27E AK-AM-3637543 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 6 4/9/2005 3350 o Picking up pipe Gary/Mike spe....,....,v-sun CRI LLI N G 5ERVI E:: E 5 Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 0 Whr 0 Whr ( 0 Whr @ 0 Pump 1 0 spm Flow rate 0 gpm - Gas* 0 units 0 unit! ( 0 units @ 0 ) Pump 2 0 0 gps - Temp Out 70 Deg F ( deg F @ ) Pump Liner 6.5" x 12 in. - SPP 0 Mud Wt In Mud Wt Out 10.10 ppg 10.10 ppg Visc 51 secs PV 18 cp API filt 7.6 ml HTHP 0.0 m Mud Wt at Max Gas - YP 20 Ibs/100ft2 Gels 6 \ 23 \ 25 PH -ppg 8.5 Sd 0.8 % - - -- -- Bit No.: 2 Type: HCM605 Bit Size: 81/2 Jets: 5 # 0 0 x 0 x TFA: 0.4640 -- - - - Wt On Bit: 0 RPM: Hrs. On Bit: 0.0 Total Revs on Bit: 0 Footage for Bit Run 0 Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: 43000 ppm - Short Trip Depth ft Short Trip Gas: Mud Cut: ppg Short Trip CI: ppm - Tight Spots: 1 I / Feet of Fill on Bottom: 0 ft IIlI - t Lithology: 35 % Sltst 25 % sd 35 % clyst 5 % Grav % - - - - I Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg - - - - - - ft units ppg ft units ppg ft units ppg - - - - - - ft units ppg ft units ppg ft units ppg - - - - - - Drilling Breaks Depth Drill Rate Gas % Lithology before during after before during afte r Sltst Sst Ls Cly to - - - - to - - - - to - - - - to - - - - 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: very fine filings oz. m 24 hr Recap: Tested plug, and tested BOP's, M/U BHA, P/U Singles, Displace well with waterbase mud, Test casing. * 2 Sample catchers on Location: Jeremy McNaught, Steve Jenkins Daily cost: Full Mudlogging + 2 Sample Catchers ($275.00/ man/day) + Pit Monitor-3 extra pits+Geo Comp Daily cost: = $3025.00 + $550.00 + $60 + $100= $ 3735.00 Logging Engineer: Doug Wilson / Mark Lindloff * 10000 units = 100% Gas In Air ......~ I I I I I I I I I I I I I I I I I' I I spe....,....,v-sun CAIL..L..ING SEAVICES Customer: Well: Area: Lease: Rig: Job No.: Mudlogger's Morning Report ~. Kerr McGee Ataruq #2 North Slope Kuparuk Nabors 27E AK-AM-3637543 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 7 4/10/2005 5080 1730 Drilling Gary/Mike ~ Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 120 fUhr 176 fUhr ( 454 fUhr @ 3582 Pump 1 65 spm Flow rate 600 gpm - Gas* 140 units 98 unit! ( 585 units @ 4924 ) Pump 2 60 10 gps - Temp Out 70 Deg F ( deg F @ ) Pump Liner 6.5" x 12 in. - SPP 2558 .~_ . 01111· ~Å""'. Mud Wt In Mud Wt Out 10.10 ppg 10.10 ppg Visc 51 secs PV 18 cp .lIC~ - API filt 7.6 ml HTHP 0.0 m Mud Wt at Max Gas _ ppg YP 20 Ibs/100ft2 Gels 6 \ 23 \ 25 PH 8.5 Sd 0.8 % -- Bit No.: Wt On Bit: 2 Type: 20-0ct RPM: HCM605 95 Bit Size: Hrs. On Bit: - -- 81/2 12.0 x TFA: 0.4640 -- Footage for Bit Run 1730 Jets: 5 # 0 Total Revs on Bit: o x 0 - o Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: 43000 ppm - Short Trip Depth ft Short Trip Gas: Mud Cut: ppg Short Trip CI: ppm - Tight Spots: / / 1 Feet of Fill on Bottom: 0 ft ~ Lithology: 100 % Sltst 0 % sd 0 % clyst 0 % Grav % - - - - Connection Gas and Mud Cut ft units ppg ft units ppg - - - - ft units ppg ft units ppg - - - - ft units ppg ft units ppg - - - - 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: very fine filings before Drill Rate during Depth to to to to ~ ~ ft ft ft units - units - units -ppg -ppg ppg - - Drilling Breaks after Gas during after % Lithology Sltst Sst Ls Cly - - - - - - - - - - - - - - - - rI oz. before ....... ...~.. « 24 hr Recap: Continued picking up pipe, Drilled 20 feet of new formation, performed LOT to a 13.5 ppg equivalent Currently drilling ahead. * 2 Sample catchers on Location: Jeremy McNaught, Steve Jenkins Daily cost: Full Mudlogging + 2 Sample Catchers ($275.00/ man/day) + Pit Monitor-3 extra pits+Geo Comp Daily cost: = $3025.00 + $550.00 + $60 + $100= $ 3735.00 Logging Engineer: Doug Wilson / Mark Lindloff * 10000 units = 100% Gas In Air I I I I I I I I I I I I I I I I I I I spe...,...,v-sun CRI L.L.I N G SERVI c: E 5 Customer: Well: Area: Lease: Rig: Job No.: Mudlogger's Morning Report Kerr McGee Ataruq #2 North Slope Kuparuk Nabors 27E AK-AM-3637543 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 8 4/11/2005 6517 1437 Drilling Gary/Mike Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 85 ftIhr 128 ftIhr ( 719 ftIhr @ 6161 Pump 1 65 spm Flow rate 581 gpm - Gas* 248 units 525 unit! ( 3825 units @ 5526 Pump 2 55 9.683 gps - 'Temp Out 70 Deg F ( deg F @ Pump Liner 6.5" x 12 in. SPP 2877 Mud Wt In Mud Wt Out 10.60 ppg 10.60 ppg Visc 51 secs PV 18 cp API filt 7.6 ml HTHP 0.0 m Mud Wt at Max Gas YP 20 Ibs/100ft2 Gels 6 \ 23 \ 25 PH 8.5 Sd ppg 0.8 % Bit No.: Wt On Bit: 2 Type: 14.00 RPM: HCM605 125 Bit Size: Hrs. On Bit: -- 81/2 25.4 o x 0 o x TFA: 0.4640 -- Footage for Bit Run 3167 Jets: 5 x 11 -- Total Revs on Bit: Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: 43000 ppm Short Trip Depth 5724 ft Short Trip Gas: 2086 Mud Cut: ppg Short Trip CI: ppm Tight Spots: / / / Feet of Fill on Bottom: 0 ft ology: 25 % Sltst 20 % Sh 55 % clyst 0 % Grav % -' . ~.....,.-- ft ft ft units units units ppg ppg ppg Depth Drill Rate during before to to to to Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft ft ft Drilling Breaks after Gas during afte r before 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: very fine filings oz. units units units ppg ppg ppg % Lithology Sltst Sst Ls Cly 24 hr Recap: Continued drilling to 5603', Short trip two stands, STG 2086 units, MWD computer down, fixed, Currently drilling ahead. * 2 Sample catchers on Location: Jeremy McNaught, Steve Jenkins Daily cost: Full Mudlogging + 2 Sample Catchers ($275.00 I man/day) + Pit Monitor-3 extra pits+Geo Comp Daily cost: = $3025.00 + $550.00 + $60 + $100= $ 3735.00 Logging Engineer: Doug Wilson / Mark Lindloff * 10000 units = 100% Gas In Air I I I I I I I I I I I I I I I I I I I spe.-..-.v-sun [J '" I L..L..I N G 5 E "'V I c: E 5 Customer: Well: Area: Lease: Rig: Job No.: Mudlogger's Morning Report Kerr McGee Ataruq #2 North Slope Kuparuk Nabors 27E AK-AM-3637543 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 9 4/12/2005 7400 883 POOH Gary/Mike Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 0 ftIhr 118 ftIhr ( 267 ftIhr @ 6927 Pump 1 52 spm Flow rate 534 gpm Gas* 0 units 505 unit! ( 2334 units @ 6582 Pump 2 55 8.9 gps Temp Out 98 Deg F ( deg F @ Pump Liner 6.5" x 12 in. SPP 2361 Mud Wt In Mud Wt Out Visc 60 secs PV 23 cp API tilt 6.4 ml HTHP 0.0 m Mud Wt at Max Gas YP 22 Ibs/100ft2 Gels 12 \ 36 \ 39 PH -- 11.40 ppg 11 .40 ppg Bit No.: Wt On Bit: 2 Type: -13.00 RPM: HCM605 100 Bit Size: Hrs. On Bit: Hili MU 1M:! '1 8.3 Sd ppg 0.3 % 81/2 34.4 Wi x TFA: 0.4640 -- Footage for Bit Run 4050 Jets: 5 x 11 -- Total Revs on Bit: o x 0 o I Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: 22000 ppm Short Trip Depth 5724 ft Short Trip Gas: 2086 Mud Cut: ppg Short Trip CI: ppm Tight Spots: 1 I / Feet of Fill on Bottom: 0 ft y: 80 % Sltst 10 % Sh 0 % clyst 10 % Sst % Connection Gas and Mud Cut units ppg ft units ppg ft units ppg units ppg ft units ppg ft units ppg units ppg ft units ppg ft units ppg ".!iBiS' I n If III' JI L :I~.~' Drilling Breaks Drill Rate Gas % Lithology before during after before during after Sltst Sst Ls Cly ft ft ft Depth to to to to 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: very fine filings oz. 24 hr Recap: Drill ahead to TO, 7400'md 6124' TVD, While short tripping we lost 174 bbls of mud, Pumped a sweep and continued short tripping. * 2 Sample catchers on Location: Jeremy McNaught, Steve Jenkins Daily cost: Full Mudlogging + 2 Sample Catchers ($275.00 I man/day) + Pit Monitor-3 extra pits+Geo Comp Daily cost: = $3025.00 + $550.00 + $60 + $100= $ 3735.00 Logging Engineer: Doug Wilson I Mark Lindloff * units:: 100% Gas In Air 10000 I I I :l I I I I I I I I I I I I I I I I . spe....,....,v-sun CRIL..L..ING SERVICES Customer: Well: Area: Lease: Rig: Job No.: Mudlogger's Morning Report .:~--~~-~¡ Kerr McGee Ataruq #2 North Slope Kuparuk Nabors 27E AK-AM-3637543 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 10 4/13/2005 7400 o Circulating Gary/Mike r Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 0 ft/hr 0 ft/hr ( 0 ft/hr @ 0 Pump 1 0 spm Flow rate 0 gpm - Gas* 0 units 71 unit¡ ( 1389 units @ 7341 ) Pump 2 0 0 gps - Temp Out 98 Deg F ( deg F @ ) Pump Liner 6.5" x 12 in. - SPP 0 Mud Wt In Mud Wt Out 11.30 ppg 11.30 ppg Visc 58 secs PV 23 cp - API tilt 7.0 ml HTHP 0.0 m Mud Wt at Max Gas - YP 21 Ibs/100ft2 Gels 10 \ 32 \ 38 PH - Bit No.: Wt On Bit: Type: -42.00 RPM: Bit Size: Hrs. On Bit: ... Trip Depth: 7400 ft Trip Gas: Short Trip Depth ft Short Trip Gas: Tight Spots: 5444 1 3319 / 1 . 1, '-....~, ¡:II:! ¡;'<¡) - ~T Current Lithology: 80 % Sltst 10 % - - -, -ppg 9.4 Sd 0.3 % - -- - Jets: x 0 x 0 x TFA: - - - - - Total Revs on Bit: 0 Footage for Bit Run ,... -""'" 1389 Mud Cut: ppg Trip CI: 16000 ppm - Mud Cut: ppg Short Trip CI: ppm - Feet of Fill on Bottom: 0 ft ~~ Sh 0 % clyst 10 % Sst % - - Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg - - - - - - ft units ppg ft units ppg ft units ppg - - - - - - ft units ppg ft units ppg ft units ppg - - ~ - - - Drilling Breaks Depth Drill Rate Gas % Lithology before during after before during after Sltst Sst Ls Cly to - - - - to - - - - to - - - - to - - - - 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: very fine filings oz. -~ "~ 24 hr Recap: Backream F/5444 to 3319', POOH, Run RIH Tight 6200, RIH Circulating at report time * 2 Sample catchers on Location: Jeremy McNaught, Steve Jenkins Daily cost: Full Mudlogging + 2 Sample Catchers ($275.00 / man/day) + Pit Monitor-3 extra pits+Geo Comp Daily cost: = $3025.00 + $550.00 + $60 + $100= $ 3735.00 Logging Engineer: Doug Wilson / Mark Lindloff * 10000 units = 100% Gas In Air I I I I I I I I I I I I I I I I I- I I !L~ . Mudlogger's Morning Report Customer: Well: Area: Lease: Rig: Job No.: Kerr McGee Ataruq #2 North Slope Kuparuk Nabors 27E AK-AM-3637543 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 11 4/14/2005 7400 o E-Logging Gary/Mike 5per'r'V-5un CRI L..L..I N 13 5ERVI C E 5 , liE ¡ mJ ^ ï ¡ !JI"':.'. ~: Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 0 fVhr 0 fVhr ( 0 fVhr @ 0 Pump 1 0 spm Flow rate 0 gpm - Gas* 0 units unit¡ ( units @ ) Pump 2 0 0 gps - Temp Out 98 Deg F ( deg F @ ) Pump Liner 6.5" x 12 in. - SPP 0 Mud Wt In Mud Wt Out 11.20 ppg 11 .20 ppg Visc 58 secs PV 17 cp API tilt 8.0 ml HTHP 13.8 m Mud Wt at Max Gas YP 22 Ibs/100ft2 Gels 9 \ 34 \ 39 PH -ppg 8.2 Sd 0.3 % - - -- - - - Bit No.: Type: Bit Size: Jets: x 0 x 0 x TFA: - - - - - Wt On Bit: RPM: Hrs. On Bit: Total Revs on Bit: 0 Footage for Bit Run Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: 16000 ppm - Short Trip Depth ft Short Trip Gas: Mud Cut: ppg Short Trip CI: ppm - Tight Spots: / / / Feet of Fill on Bottom: 0 ft I> ology: 80 % Sltst 10 % Sh 0 % clyst 10 % Sst % - - - - Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg - - - - - - ft units ppg ft units ppg ft units ppg - - - - - - ft units ppg ft units ppg ft units ppg - - - - - - Drilling Breaks Depth Drill Rate Gas % Lithology I before during after before during after Sltst Sst Ls Cly to - - - - to - - - - to - - - - to ; - - - - 24 hour accumulation of Steel Filings from Possum Belly Magnets: oz. Description of filings: very fine filings ~ ""= ¡¡¡¡H~ I!H It III JilT.,. 24 hr Recap: Finish POOH, And currently Wire Line Logging * 2 Sample catchers on Location: Jeremy McNaught, Steve Jenkins Daily cost: Full Mudlogging + 2 Sample Catchers ($275.00/ man/day) + Pit Monitor-3 extra pits+Geo Comp Daily cost: = $3025.00 + $550.00 + $60 + $100= $ 3735.00 Logging Engineer: Doug Wilson / Mark Lindloff * 10000 units = 100% Gas In Air - - - - - - - - - - - - - - - - spe""""\I-sun C A I L..L..I N G 5 E A V I c: E 5 WELL r~AME OPERATOR CmHRACTOR Ataruq #2 Kerr McGee Corp Nabors 27E LOCATION: Kuparuk AREA: North Slope STATE: Alaska BIT RECORD BIT Bit Bit Depth Depth Footage Bit TFA AVG WOB RPM PUMP PUMP Bit Bit HHP Krevs Bit Grade Remarks # Type Size IN OUT Hours ROP Press GPM Psi Drop fI/s HHP I in2 HTC MX-1 12.25" 106.0 3350.0 3243.0 23.8 10310 136.3 15 110 2100 800 550 249 2.00 3927 PULL FOR 12.25" TO 2 HTC HTM605 8.5" 3350.0 7400.0 4050.0 34.4 0.4640 117.7 10 120 3050 600 1790 418 11.04 602 PULL FOR 8.5" TO - - - - - - - - - - - - - - - - - - - Sperry-Sun Casing Record Company: Kerr McGee Corporation Lease Drillinq Services Well Atatruq # 2 Area North Slope - Alaska 133/8" CSG 106.62 ft MD Rig Nabors 27E Job No: AK-AM-0003637543 95/8" 3319 ft MD Water-based Mud Record Mud Co Baroid Spud Date 3 Apr 2005 7" Liner N/A TD Date: 12 Apr 2005 Date Depth Wt . Vis PV YP Gels . Filt . R600/300 Cake Solids Water Sd Pm pH MBT· Pf/Mf Chlor Hard LGS Remarks ft-MD ppg see Ib/100 Ib/100ft2 m/30m 200/100/6/3 32nds % % % ppm(k) Ca++ %b/vol 4-Apr 1650 9.60 48 13 21 7/10/14 5A 47/34/28/21/8/8 1 5.2 92.0 4.0 0.05 8.5 3.0 0.02 I OAO 35 240 3.6 Drill 12.25" '"- 5-Apr 3260 9.90 54 16 23 8/20/24 9.2 55/39/32/23/8/7 1 7.3 89.5 2.0 8.3 5.0 N I 0.50 41 280 5.9 Drill 12.25" 6-Apr 3350 9.50 48 16 26 8/10/13 9.8 58/42/33/22/8/8 1 6.0 91.0 2.5 0.10 8A 5.0 0.03/0.60 38 120 6.1 Drill 12.25" I TD 7-Apr 3350 9.50 48 17 22 7/12/16 8A 56/39/30/22/7/6 2 5.3 91.0 2.0 0.05 8A 4.0 0.05/0.50 46 140 5A Run 9 5/8 CSG 8-Apr 3350 10.10 51 18 20 6/23125 7.6 56/38/30/21n /5 1 7.6 89.0 0.8 1.00 8.5 5.0 0.0811.50 43 700 5.3 Drill 8.5" 9-Apr 5069 10.10 49 20 17 8/34/35 6A 57/37/29/19/5/4 2 7.6 89.0 0.2 1.00 8.7 6.5 0.20 11.80 44 720 5.2 Drill 8.5" 1 O-Apr 6508 10.60 46 21 13 3/11/13 4A 55/34/26/16/3/2 2 11.1 86.0 0.3 1.00 8.7 8.7 0.281 2.20 39 550 8.0 Drill 8.5" 11-Apr 7400 11AO 60 23 22 12/36/39 4.2 68/45/36/25/8/7 2 16A 82.0 0.3 1.00 8.3 8.0 0.1011.80 22 320 11A Drill 8.5" 12-Apr 7400 11AO 62 15 25 15/38/42 6A 55/40/33/24/8/6 2 15.7 83.0 0.3 1.00 8.5 9.0 0.25/2AO 18 480 9.7 Drill 8.5" 13-Apr 7400 11.30 58 11 23 10/32/38 7 2 0.3 9A 16 POOH 14-Apr 7400 11.20 58 17 22 9/34/39 8 56/39/31/23/8/6 2 15.2 83.0 0.3 .80 8.2 12.5 0.1511.80 18 480 10.1 Wirelining ~ ~ ~ . I I I I I I I sperry..su n DRilLING SERVICES Show Report Well Name: Location: Operator: Report Prepared By: Report Delivered To: Depth (MD) (TVD) to to Show Report No. Date/Time: 4/5/2005 ft ft Mark Líndloff I Doug Wilson Analysis nGas 121 nOil nWater fX1 Non-Producible Hydrocarbons Depth IIIIIIII!IIIIIÍ Interpretation: High gas corresponds to Sandstone. Sandstone-very fine grain, well cemented, spotty oil in sample for 2803-2834' , 30% bright yellow fluorescence, fair fast white cut fluorescence, pale light brown white light cut, medium brown stain. 2978', 3014' and 3022' correspond to spotty thin sands and siltstones with oil present in them with up to 40% medium bright yellow fl, poor ct fluor. ROP: Before / Max I After 90 ft/hr I 273 ft/hr 1120 ft! hr GAS: Before / Max I After 80 units /321 units 1135 units Depth Mud Chlorides (ppm) '" C3 84 ppm ppm ppm (Steam Still PPM's in 1000's) 0.00 :: 0.00 =: n Hydrocarbon Ratios "m'~"I"!III NA C1 C5 C1 C2 '" Hydrocarbon Ratios C1/C2 C1/C3 2040.0 C1/C4 ClIC5 C1 C2 0.12 C3 0.01 C4 0.03 C5 0.06 '" ::: 0.06 1000.0 NPH 100.0 ~ ......... _'m""":: ........ I I I Mud Chlorides (ppm) '" NA ppm ppm ppm (Steam Still PPM's in 1000's) Gas ----- ---- ....-.......- C1 C2 C3 C4 C5 Hydrocarbon Ratios C1/C2 C1/C3 C1/C4 C1/C5 Oil ......--..........".....--""'" NPH 1.0 -J i I I I I I I I I I [Xl Non-Producible Hydrocarbons Mud Chlorides (ppm) '" NA C2 Hydrocarbon Ratios 81 C1 - - C3 C4 C5 C1 C2 C3 C4 C5 ppm ppm ppm (Steam Still PPM's in 1000's) 32,9 0.00::: :: 0.27 ::: 0.02 Hydrocarbon Ratios 81/82 C1/C3 C1/C4 C1/C5 NPH 0.00 0.00 0.00 ::: :: 0.04 Analysis nGas nOil nWater !X Non-Producible Hydrocarbons NA Gas Mud Chlorides (ppm) Depth ppm ppm ppm (Steam Stili PPM's in 1000's) 1000.0 100.0 C1 82 83 C4 C5 Hydrocarbon Ratios ClIC2 ClIC3 81/84 81/85 NPH 1.0 10.0 Oil Non-Producible Hydrocarbons u i a .-. 'ii, I I sperry..sun DRILLING SERVICES Show Report Well Name: Location: Operator: Report Prepared By: Report Delivered To: Depth (MD) (TVD) 5406 to to 4797 Show Report No. 4/10/2005 I . Mark líndloff I Doug Wilson Date/Time: I Interpretation: High gas corresponds to Siltstone/Shale package with very thin minor sandstones. Siltstone/Shale carbonaceous with 10- 30% yellow sample fluorescence, very poor blue white cut fluorescence, no white light cut, no stain. Sandstone as minor spotty thin sands. Abundant scattered carbonaceous material in part. Sample fluorescence grades to dull orange color towards bottom. ROP : Before / Max / After 125 ft/hr I 250 ft/hr /180 ftI hr GAS: Before / Max! After 200 units / 3825 units I 600 units I I ppm ppm ppm (Steam Still PPM's in 1000's) 0.00 :: C1 C2 15.10 C3 6.06 C4 1.97 C5 0.47 I Depth '# '" '" I 0.00 0.00 '" '" fXl Gas nOil [XI Non-Producible Hydrocarbons 100.0 I ppm ppm ppm (Steam Still PPM's in 1000's) :.1-1 I C1 C2 C3 C4 C5 I '" '" I '" '" 0<00 := n Mud Chlorides (ppm) '" NA C1 C2 C1 C3 C1 C5 C4 Hydrocarbon Ratios C1!C2 C1/C3 C1!C4 C1!C5 1000.0 NPH Mud Chlorides (ppm) '" Gas Hydrocarbon Ratios C1/C2 C1/C3 C1/C4 C1/C5 10.0 Oil -----.....~,------- (Xl Non-Producible Hydrocarbons NPH 1.0 I ppm ppm ppm (Steam Still PPM's in 1000's) I I Hydrocarbon Ratios C1 C1 C2 C3 C4 Mud Chlorides (ppm) '" NA C5 Hydrocarbon Ratios C1/C2 9.0 C1!C3 C1/C4 C1IC5 1000.0 NPH 100.0 !ìq Non-Producible Hydrocarbons Gas I I I Mud Chlorides (ppm) Hydrocarbon Ratios C1!C2 C1/C3 C1/C4 C1/C5 10.0 Oil _______~L_,__"._______ NPH 1.0 Hydrocarbons I I I I I I I I I I I I I I I I I I I I I sperry-sun DRILLING SERVICES Show Report Well Name: ATARUQ Location: Kuparuk Operator: Report Prepared By: Mark Undloff / Report Delivered To: Depth (MD) (TVD) Wilson Date/Time: to to Show Report No. 4/10/2005 Interpretation: High gas corresponds to Sandstone. Sandstone-very fine to fine grain, sub angular to sub rounded. Unconsolidated , 10% yellow- yellow gold fluorescence, sl mlky blu cut fluorescence, no visable porosity. ROP : Before / Max / After GAS: Before / Max / After 1882 units / 2568 units / 326 units '" NA 11111 nl U Hydrocarbon Ratios C1 C1 - - C3 C4 IlI'I!'I'Ii Mud Chlorides (ppm) '" C1 C2 C1 C5 Hydrocarbon Ratios C1/C2 11 C1/C3 C1/C4 C1/C5 1000.0 NPH 100.0 Depth ¡x¡ Non-Producible Hydrocarbons ppm ppm ppm (Steam Still PPM's in 1000's) C1 C2 C3 C4 C5 Analysis IX] Gas nOil n,Water IX] Non-Producible Hydrocarbons NPH 1.0 :3 ppm ppm ppm {Steam Still PPM's in 1000's} C1 C2 C3 C4 C5 Analysis IX] Gas Mud Chlorides (ppm) '" Gas ---- Hydrocarbon Ratios C1/C2 1 C1/C3 C1/C4 C1/C5 10.0 Oil Hydrocarbon Ratios C1 C1 C2 C3 C4 Mud Chlorides (ppm) '" NA C5 Hydrocarbon Ratios C1/C2 C1/C3 C1/C4 C1/C5 1000.0 100.0 NPH Depth f1<J Non-Producible Hydrocarbons Gas Mud Chlorides (ppm) '" NA Hydrocarbon Ratios C1/C2 C1/C3 C1/C4 C1/C5 10.0 NPH 1.0 Oil Non-Producible Hydrocarbons II I I I I ,; I I I I I I I I I I I I II I sperry..sun DRILLING SERVICES Show Report 6568 Well Name: Location: Kuparuk Operator: Report Prepared By: Mark Lindloff 1 Doug Wilson Report Delivered To: to to Show Report No, Date/Time: 4/11/2005 Depth (MD) (TVD) Interpretation: High gas corresponds to Sandstone. Sandstone-very fine to fine grain, sub angular to sub rounded. Unconsolidated , 10% yellow- yellow goid fluorescence, sl mlky blu cut fluorescence, no visable porosity. Rap: Before / Max / After 94.23 fUhr /193 ft/hr /116 ftI hr Mud Chlorides (ppm):: C4 Depth ppm ppm ppm (Steam Still PPM's in 1000's) 0.00 ::: GAS: Before / Max / After 303 units / 2334 units / 202 units NA C2 C3 ::: Hydrocarbon Ratios C1/C2 C1/C3 C1/C4 C1/C5 C1 C2 C3 0.61 C4 C5 0.00 :: ::: 0.07 ::: 0.07 Analysis IXlGas nail nWater fXl Non-Producible Hydrocarbons 100.0 1000.0 NPH Mud Chlorides (ppm) :: ---- ------ ppm ppm ppm (Steam Still PPM's in 1000's) Gas - -- C1 C2 C3 C4 C5 Hydrocarbon Ratios C1/C2 C1/C3 C1/C4 C1/C5 Analysis IXlGas nail nWater IXl Non-Producible Hydrocarbons NPH 1.0 Depth Mud Chlorides (ppm):: C2 ppm ppm ppm (Steam Still PPM's in 1000's) 10.0 Oil NA Hydrocarbon Ratios C1 C1 - - C3 C4 C1 184.3 ::: 184.3 C2 7.30 ::: C3 1.84 ::: C4 0.00 ::: C5 0.00 ::: Hydrocarbon Ratios C1/C2 C1/C3 100.1 C1/C4 :: C1/C5 Analysis IXl Gas nWater pq Non-Producible Hydrocarbons Gas 1000.0 NPH 100.0 Mud Chlorides (ppm):: Hydrocarbon Ratios C1/C2 C1/C3 C1/C4 C1/C5 10.0 NPH 1.0 Oil __ _,,__.._____ "'-''''_''~_'''_M''____ 4 C5 "'-- LI f C1 C5 ""-- .1¡um~, I I I I I I I sperry..sun DRiLLING SERViCES Show Report Well Name: Location: Operator: Report Prepared By: Report Delivered To: I to to 6036 Show Report No. 4/11/2005 #2 Depth (MD) (TVD) ft Wilson Date/Time: II Interpretation: High gas corresponds to Kuparuk "C" Sandstone. Sandstone-very fine to fine grain, sub angular to sub rounded. Clear and white with some brown. As thin interbeds in silty claystone. 1 to 5 % bright yellow fluorescence. Trace to very poor blue- white cut fluorescence. Sample had large amounts of large shale cavings. ROP : Before / Max 1 After 100 ft/hr 1125 ft/hr /100 ftI hr GAS: Before / Max 1 After 400 units /1267 units 1250 units Depth NA Mud Chlorides (ppm) C1 C2 C1 C3 C1 C4 Hydrocarbon Ratios C1/C2 C1/C3 C1/C4 C1/C5 1000.0 NPH I ppm ppm ppm (Steam Still PPM's in 1000's) C1 92.7 :::: C2 6.70 :::: C3 4.36 C4 C5 Analysis IXIGas nOil [X)Non-Producible Hydrocarbons Depth :# ppm ppm ppm (Steam Still PPM's in 1000's) :::: 100.0 Mud Chlorides (ppm):= Gas -----'" Hydrocarbon Ratios C1/C2 C1/C3 C1/C4 C1/C5 10.0 - I I :::: :::: :::: 1 :::: 0.31 _ "u_,..____^^_._-_- ~^ Oil NPH 1.0 I Hydrocarbon Ratios I I I I I I I I Analysis IXIGas Depth (Xl Non-Producible Hydrocarbons NA C1 C2 C5 ~í ppm ppm ppm (Steam Still PPM's in 1000's) C1 C2 C3 C4 C5 Analysis (Xl Gas pq Non-Producible Hydrocarbons Gas Depth ppm ppm ppm (Steam Still PPM's in 1000's) C1 :::: C2 :::: C3 :::: C4 C5 804 Mud Chlorides (ppm) '" C4 C3 Hydrocarbon Ratios C1/C2 C1/C3 C1/C4 C1/C5 1000.0 NPH ... 100.0 :;ø------ ~~~~:::~- Mud Chlorides (ppm) --- ;;,;;.o--....-~m.--_.-'-'--~-.--.---.-.,-~ Hydrocarbon Ratios C1/C2 C1/C3 C1/C4 C1/C5 10.0 NPH 1.0 Oil Hydrocarbons I I I I I I I I I I I I I I I I I I I Halliburton Global Survey: Start Date: Company: Tool: Engineer: Tied-to: Field: Ataruq Map System:US State Plane Coordinate System 1927 Geo Datum: NAD27 (Clarke 1866) Sys Datum: Mean Sea Level Map Zone: Coordinate System: Geomagnetic Model: Alaska, Zone 4 Well Centre bggm2004 Site: Ataruq Site Position: Northing: 5969528.36 ft Latitude: 70 19 40.485 N From: Map Easting: 480716.30 ft Longitude: 150 9 23.000 W Position Uncertainty: 0.00 ft North Reference: True Ground Level: 0.00 ft Grid Convergence: -0.15 deg Well: Ataruq #2 Slot Name: Well Position: +N/-S 0.00 ft Northing: 5969528.36 ft Latitude: 70 19 40.485 N +E/-W 0.00 ft Easting : 480716.30 ft Longitude: 150 9 23.000 W Position Uncertainty: 0.00 ft Wellpath: Ataruq #2 Drilled From: Well Ref. Point 501032050800 Tie-on Depth: 0.00 ft Current Datum: Ataruq#2: Height 102.62 ft Above System Datum: Mean Sea Level Magnetic Data: 4/2/2005 Declination: 24.08 deg Field Strength: 57568 nT Mag Dip Angle: 80.70 deg Vertical Section: Depth From (TVD) +N/-S +E/-W Direction ft ft ft deg 0.00 0.00 0.00 6.80 Survey Program for Definitive Wellpath Date: 4/26/2005 Validated: Yes Actual From To Survey ft ft 146.15 7330.84 Ataruq #2 (146.15-7330.84) Version: Toolcode Toot Name MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC Survey 30.42 0.00 0.00 30.42 -72.20 0.00 0.00 5969528.36 480716.30 TIE LINE 146.15 0.71 218.66 146.15 43.53 -0.56 -0.45 5969527.80 480715.85 MWD+IFR-AK-CAZ-SC 239.04 0.67 226.67 239.03 136.41 -1.38 -1.20 5969526.98 480715.09 MWD+IFR-AK-CAZ-SC 333.82 0.57 226.04 333.80 231.18 -2.09 -1.94 5969526.28 480714.35 MWD+IFR-AK-CAZ-SC 422.06 0.71 216.14 422.04 319.42 -2.84 -2.58 5969525.53 480713.71 MWD+IFR-AK-CAZ-SC 514.99 0.84 219.97 514.96 412.34 -3.82 -3.36 5969524.55 480712.93 MWD+IFR-AK-CAZ-SC 601.09 0.82 218.11 601.05 498.43 -4.79 -4.15 5969523.58 480712.14 MWD+IFR-AK-CAZ-SC 692.39 0.79 224.71 692.34 589.72 -5.75 -4.99 5969522.62 480711.29 MWD+IFR-AK-CAZ-SC 782.96 0.76 222.52 782.90 680.28 -6.64 -5.84 5969521.74 480710.45 MWD+IFR-AK-CAZ-SC 874.53 1.05 218.98 874.46 771.84 -7.74 -6.78 5969520.64 480709.51 MWD+IFR-AK-CAZ-SC 960.01 1.25 227.98 959.93 857.31 -8.97 -7.96 5969519.41 480708.32 MWD+IFR-AK-CAZ-SC 1052.85 1.31 230.94 1052.74 950.12 -10.32 -9.54 5969518.07 480706.74 MWD+IFR-AK-CAZ-SC 1148.98 1.59 226.51 1148.84 1046.22 -11.93 -11.36 5969516.46 480704.91 MWD+IFR-AK-CAZ-SC 1242.78 1.79 225.50 1242.60 1139.98 -13.85 -13.35 5969514.54 480702.92 MWD+IFR-AK-CAZ-SC 1336.85 1.54 215.21 1336.63 1234.01 -15.91 -15.12 5969512.49 480701.14 MWD+IFR-AK-CAZ-SC 1432.68 2.07 230.01 1432.41 1329.79 -18.08 -17.19 5969510.33 480699.06 MWD+IFR-AK-CAZ-SC 1526.01 2.15 228.27 1525.68 1423.06 -20.33 -19.79 5969508.09 480696.46 MWD+IFR-AK-CAZ-SC 1623.58 2.30 228.58 1623.18 1520.56 -22.84 -22.62 5969505.58 480693.62 MWD+IFR-AK-CAZ-SC 1717.97 2.22 226.51 1717.49 1614.87 -25.35 -25.37 5969503.08 480690.87 MWD+IFR-AK-CAZ-SC I Halliburton Global I I Survey I 1812.84 1.97 338.01 1812.33 1709.71 -25.10 -27.32 5969503.33 480688.92 MWD+IFR-AK-CAZ-SC I 1906.46 7.53 7.49 1905.60 1802.98 -17.52 -27.12 5969510.91 480689.14 MWD+IFR-AK-CAZ-SC 1999.86 11.39 7.85 1997.71 1895.09 -2.31 -25.06 5969526.11 480691.24 MWD+IFR-AK-CAZ-SC 2094.43 14.30 10.37 2089.91 1987.29 18.43 -21.68 5969546.84 480694.67 MWD+IFR-AK-CAZ-SC 2186.87 17.37 12.54 2178.83 2076.21 43.14 -16.63 5969571.53 480699.78 MWD+IFR-AK-CAZ-SC I 2281.99 20.98 13.42 2268.66 2166.04 73.57 -9.59 5969601.95 480706.90 MWD+IFR-AK-CAZ-SC 2375.23 24.25 15.03 2354.72 2252.10 108.31 -0.75 5969636.66 480715.83 MWD+IFR-AK-CAZ-SC 2470.04 29.20 15.70 2439.37 2336.75 149.40 10.56 5969677.72 480727.25 MWD+IFR-AK-CAZ-SC 2565.28 33.53 14.18 2520.68 2418.06 197.29 23.30 5969725.57 480740.11 MWD+IFR-AK-CAZ-SC I 2659.74 37.99 11.91 2597.31 2494.69 251.06 35.70 5969779.30 480752.64 MWD+IFR-AK-CAZ-SC 2755.83 42.17 11.13 2670.82 2568.20 311.67 48.03 5969839.88 480765.13 MWD+IFR-AK-CAZ-SC 2849.43 45.63 10.99 2738.25 2635.63 375.36 60.48 5969903.53 480777.74 MWD+IFR-AK-CAZ-SC I 2944.67 45.33 9.47 2805.03 2702.41 442.18 72.54 5969970.31 480789.97 MWD+IFR-AK-CAZ-SC 3036.21 45.15 7.77 2869.49 2766.87 506.44 82.28 5970034.54 480799.88 MWD+IFR-AK-CAZ-SC 3132.07 44.16 7.62 2937.68 2835.06 573.21 91.31 5970101.28 480809.07 MWD+IFR-AK-CAZ-SC 3227.17 42.34 6.67 3006.95 2904.33 637.86 99.42 5970165.90 480817.35 MWD+IFR-AK-CAZ-SC I 3280.35 42.13 5.85 3046.32 2943.70 673.39 103.32 5970201.42 480821.34 MWD+IFR-AK-CAZ-SC 3401.90 42.15 5.38 3136.45 3033.83 754.55 111.30 5970282.55 480829.52 MWD+IFR-AK-CAZ-SC 3498.07 41.35 5.31 3208.20 3105.58 818.31 117.26 5970346.29 480835.65 MWD+IFR-AK-CAZ-SC 3588.83 40.59 4.69 3276.73 3174.11 877.59 122.45 5970405.55 480840.99 MWD+IFR-AK-CAZ-SC I 3682.83 41.80 5.63 3347.46 3244.84 939.25 128.03 5970467.18 480846.73 MWD+IFR-AK-CAZ-SC 3778.29 41.32 5.59 3418.89 3316.27 1002.27 134.22 5970530.19 480853.08 MWD+IFR-AK-CAZ-SC 3871.66 42.62 6.17 3488.31 3385.69 1064.38 140.62 5970592.27 480859.64 MWD+IFR-AK-CAZ-SC I 3961.62 41.73 5.82 3554.98 3452.36 1124.45 146.93 5970652.32 480866.10 MWD+IFR-AK-CAZ-SC 4056.74 41.14 6.15 3626.29 3523.67 1187.05 153.49 5970714.90 480872.82 MWD+IFR-AK-CAZ-SC 4152.70 42.48 6.67 3697.81 3595.19 1250.63 160.63 5970778.44 480880.13 MWD+IFR-AK-CAZ-SC 4248.81 43.69 7.74 3768.00 3665.38 1315.75 168.87 5970843.54 480888.54 MWD+IFR-AK-CAZ-SC I 4343.36 42.99 7.79 3836.77 3734.15 1380.05 177.64 5970907.81 480897.47 MWD+IFR-AK-CAZ-SC 4437.80 43.80 7.01 3905.39 3802.77 1444.39 186.00 5970972.13 480905.99 MWD+IFR-AK-CAZ-SC 4533.04 43.20 6.69 3974.48 3871.86 1509.48 193.82 5971037.19 480913.97 MWD+IFR-AK-CAZ-SC 4626.72 42.69 6.82 4043.05 3940.43 1572.86 201.32 5971100.54 480921.64 MWD+IFR-AK-CAZ-SC I 4721.29 41.77 6.05 4113.08 4010.46 1636.02 208.45 5971163.68 480928.93 MWD+IFR-AK-CAZ-SC 4814.26 42.84 6.41 4181.83 4079.21 1698.23 215.24 5971225.86 480935.88 MWD+IFR-AK-CAZ-SC 4909.24 42.22 5.86 4251.83 4149.21 1762.06 222.11 5971289.67 480942.91 MWD+IFR-AK-CAZ-SC 5002.24 43.43 6.76 4320.04 4217.42 1824.89 229.06 5971352.48 480950.03 MWD+IFR-AK-CAZ-SC I 5095.18 42.64 6.05 4387.97 4285.35 1887.92 236.14 5971415.48 480957.26 MWD+IFR-AK-CAZ-SC 5188.62 43.79 6.31 4456.07 4353.45 1951.53 243.03 5971479.07 480964.32 MWD+IFR-AK-CAZ-SC 5282.76 43.12 5.98 4524.40 4421.78 2015.91 249.96 5971543.42 480971 .41 MWD+IFR-AK-CAZ-SC I 5366.23 42.35 6.55 4585.71 4483.09 2072.21 256.14 5971599.70 480977.74 MWD+IFR-AK-CAZ-SC 5471.94 41.53 5.84 4664.34 4561.72 2142.45 263.77 5971669.91 480985.54 MWD+IFR-AK-CAZ-SC 5568.15 42.97 6.28 4735.56 4632.94 2206.77 270.60 5971734.21 480992.54 MWD+IFR-AK-CAZ-SC 5662.33 42.14 5.91 4804.93 4702.31 2270.11 277.36 5971797.52 480999.47 MWD+IFR-AK-CAZ-SC I 5757.45 41.33 5.56 4875.91 4773.29 2333.11 283.69 5971860.50 481005.96 MWD+IFR-AK-CAZ-SC 5852.50 41.99 5.83 4946.93 4844.31 2395.98 289.96 5971923.34 481012.39 MWD+IFR-AK-CAZ-SC 5948.32 43.82 6.38 5017.11 4914.49 2460.83 296.90 5971988.18 481019.50 MWD+IFR-AK-CAZ-SC 6043.30 43.10 5.78 5086.05 4983.43 2525.80 303.83 5972053.12 481026.59 MWD+IFR-AK-CAZ-SC I 6137.93 43.23 6.46 5155.07 5052.45 2590.16 310.73 5972117.46 481033.65 MWD+IFR-AK-CAZ-SC 6232.24 44.14 6.95 5223.27 5120.65 2654.86 318.34 5972182.13 481041.43 MWD+IFR-AK-CAZ-SC 6326.23 43.22 6.92 5291.25 5188.63 2719.29 326.17 5972246.54 481049.43 MWD+IFR-AK-CAZ-SC 6419.52 42.60 6.14 5359.57 5256.95 2782.40 333.40 5972309.61 481056.82 MWD+IFR-AK-CAZ-SC I 6513.93 42.14 6.66 5429.33 5326.71 2845.62 340.49 5972372.82 481064.07 _ MWD+IFR-AK-CAZ-SC 6605.48 40.92 6.39 5497.86 5395.24 2905.93 347.39 5972433.10 481071.12 MWD+IFR-AK-CAZ-SC I I I I I I I I I I I I I I I I I I I I Halliburton Global Survey MWD+IFR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC 7077.84 7172.55 7267.26 7330.84 7400.00 37.57 36.79 36.06 35.71 35.71 7.24 7.64 7.25 6.33 6.33 5865.00 5940.46 6016.67 6068.18 6124.33 5762.38 5837.84 5914.05 5965.56 6021.71 3201.15 3257.90 3313.66 3350.67 3390.79 380.77 388.18 395.47 399.88 404.33 5972728.20 5972784.93 5972840.66 5972877.65 5972917.76 481105.26 MWD+IFR-AK-CAZ-SC 481112.82 MWD+IFR-AK-CAZ-SC 481120.25 MWD+IFR-AK-CAZ-SC 481124.75 MWD+IFR-AK-CAZ-SC 481129.30 PROJECTED to TD Sperry Drilling Services Scale: 1 inch::: 1000ft -5000 I Eastings -3000 I -2000 I -1 000 I -4000 I o Current Well Properties 1 000 - Well: Ataruq #2 Horizontal Coordinates: Ref. Global Coordinates: Ref. 47TFNL, 1834.6' FEL: Ref. Geographical Coordinates: RKB Elevation: 5969528.36 N, 480716.30 E 0.36 N, 0.30 E 70· 19' 40.4852" N. 150· 09' 22.9997" W 102.85ft above Mean Sea Level 2000 - North Reference : Units: True North Feet (LJS Survey) I The "Directional Difficulty Index" for this profile is 6.0 .£::. ... a. () o 3000 00 ü :e ~ I I 4000 - I I it: 5000 - o o o ..... I II .c: o .!: ..- Q.i 6000 - ~ (f) ¡ o 1000 Vertical Section Section Azimuth: 6.940° (True North) I 2000 I 3000 I 4000 DrWQuesi 3,0:5,06,OÖ8 - 4000 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ,I