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Home My WebLink About213-075Kaitlyn Barcelona Hilcorp North Slope, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 564-4389 E-mail: kaitlyn.barcelona@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal Received By: Date: DATE: 3/22/2022 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL Paxton 5 (PTD 213-075) Plug and Perf 3/3/2022 Please include current contact information if different from above. 213-075 T36424 Meredith Guhl Digitally signed by Meredith Guhl Date: 2022.03.23 13:54:46 -08'00' 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: ______________________ Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number): 8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071): 10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 2,618 feet 1,653 & 2,020 feet true vertical 2,573 feet N/A feet Effective Depth measured 1,653 feet 567 feet true vertical 1,626 feet 566 feet Perforation depth Measured depth 1,528 - 1,576 feet True Vertical depth 1,505 - 1,551 feet Tubing (size, grade, measured and true vertical depth)4-1/2" 12.6# / L-80 579 MD 578 TVD 567 MD 153 MD Packers and SSSV (type, measured and true vertical depth)7.63" Pkr 566 TVD Halliburton SSSV 153 TVD 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Contact Name: Contact Email: Authorized Title:Contact Phone: 321-621 & 322-020 Sr Pet Eng: 7,500psi Sr Pet Geo: Sr Res Eng: Authorized Name and Digital Signature with Date: WINJ WAG 800 Water-BblOil-Bbl 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 7 80 8,430psi Jake Flora Jake.Flora@hilcorp.com (907) 777-8442Dan Marlowe, Operations Manager measured true vertical Packer Representative Daily Average Production or Injection Data Casing Pressure Tubing Pressure 0060 0 82 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf MD 77' 780' N/A 0 Structural TVD STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 213-075 50-133-20614-00-00 N/A 5. Permit to Drill Number:2. Operator Name 4. Well Class Before Work: FEE-PRIVATE Ninilchik Field / Beluga-Tyonek Gas Pool Hilcorp Alaska LLC 3800 Centerpoint Dr, Suite 1400 Anchorage, AK 99503 3. Address: Ninilchik Unit Paxton 5 measuredPlugs Junk measured N/A Length 77' 780' Size Conductor Surface Intermediate 10-3/4" 7-5/8" Production Liner 2,031' Casing 77' 778' 4-1/2" 2,610' 2,560' 5,210psi 6,890psi Burst Collapse 2,480psi 4,790psi L G Form 10-404 Revised 10/2021 Submit Within 30 days of Operations By Meredith Guhl at 1:17 pm, Mar 08, 2022 Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267), ou=Users Date: 2022.03.08 12:56:57 -09'00' Dan Marlowe (1267) _____________________________________________________________________________________ Updated by: JLL 03/07/22 SCHEMATIC Ninilchik Unit Well: Paxton 5 Last Completed: 12/5/2013 PTD: 213-075 JEWELRY DETAIL No Depth MD Depth TVD I.D. Item 119’ 19’N/A Hanger 2 153’ 153’ 3.813” Haliburton WR-SSSV ID: 2.12 3 567’ 566’ N/A Liner Top Packer 4 1,653’ 1,626’ N/A CIBP 5 1,663’- 1,679’ 1,470’ – 1,485’3.375”16 ft X-span tubing patch, Drift ID 3.25” (set 12-26- 21) 6 2,020’1,987’N/A Magna Range Plug PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD)FT Date Status Beluga 10U 1,528’ 1,538’ 1,505’ 1,514’ 10’ 03/03/22 Open Beluga 10L 1,543’ 1,550’ 1,519’ 1,526’ 7’ 03/03/22 Open Beluga 13 1,568’ 1,576’ 1,543’ 1,551’ 8’ 03/03/22 Open Beluga 20 1,667’ 1,676’ 1,639’ 1,648’ 9’ 03/03/22 Isolated Beluga 45 1,838’ 1,855’ 1,807’ 1,824’ 17 03/03/22 Isolated Beluga 45 1,896’ 1,928’ 1,864’ 1,896’ 32 03/03/22 Isolated Beluga 48 2,048’ 2,055’ 2,014’ 1,049’ 7’ 01/12/22 Isolated Beluga 50 2,121’ 2,134’ 2,086’ 2,099’ 13 01/12/22 Isolated Isolated Beluga 50 2,139’ 2,142’ 2,104’ 2,107’ 3 01/12/22 Isolated 2,150’ 2,156’ 2,115’ 2,121’ 6 01/12/22 Isolated 2,164’ 2,174’ 2,128’ 2,138’ 10 01/12/22 Isolated 2,182’ 2,186’ 2,146’ 2,150’ 4 01/12/22 Isolated 2,210’ 2,215’ 2,147’ 2,179’ 5 01/12/22 Isolated OPEN HOLE / CEMENT DETAIL 7-5/8" Cmt w/ 54 sks in 9-7/8” Hole – Est. Top of Cement - Surface 4-1/2" Top of Cement - 579’ (10-12-2013 CBL) TD =2,618’MD /2,573’ TVD RKB: MSL = 19’ 4-1/2” 6 3 10-3/4” 7-5/8” 1 2 4 PDTD =2,499’MD /2,457’ TVD 5 BEL 20 BEL 45 BEL 48 BEL 13 BEL 10 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 10-3/4” Conductor 45.5 / L-80 / Weld Surf 77’ 7-5/8' Surface 29.7 /L-80 / Butt 6.875 Surf 780’ 4-1/2" Liner 12.6 / L-80 / DWC/C 3.98 579’ 2,610' TUBING DETAIL 4-1/2" Tubing 12.6 / L-80 / IBT 3.98 Surface 579’ Rig Start Date End Date Eline 12/22/21 3/3/22 12/26/2021 - Sunday Pollard crew arrives. PJSM and PTW. Spot equipment on location. R/U Slickline. M/U Lubricator and PT to 250psi/1500psi - Test good. M/U and RIH with 3.00" OD Bailer. No obstruction seen, tag at 2172'. POOH. M/U and RIH with 3.80" OD broach. No obstruction seen. Work broach from 1650-1700' 30 times to clean up patch area. POOH. M/U and RIH with braided line brush. Brush from 1600 to 1700 ft 20x. POOH. M/U and RIH with 16ft 3.375"OD (3.50" swell) dummy guns, 3.80"OD broach on bottom. No obstruction seen. Work toolstring over patch area 10x. POOH. RD Slickline. PJSM and PTW and R/U E-line. M/U 4.5"tubing patch, 16' element to element. (OD 3.80", ID 3.375", Drift 3.250"). PT Lubricator to 250psi/1500psi - Test good. RIH with CCL & 16ft patch. Correlate and set patch from 1663'- 1679' (perf interval patched 1667'-1676'). POOH. Rig down E-line. Turn well over to production. Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 5 50-133-20614-00 213-075 12/22/2021 - Wednesday AKEL Crew arrives at facility and obtains permit, TGSM. Fire up eline equipment. Crane will not start. Call mechanic and troubleshoot. Mechanic mobilized to location. Mechanic troubleshoots and starter has burned out. Backup crane mobilized to location. Rig up eline. Pressure test lubricator to 250 psi low / 1500 psi high. Arm and RIH with 7' 2.75" gun. Correlate to open hole log and send to town for correction. On depth. Well flowing 857 mcf @ 78 psi. Perforate BEL_48 from 2048-2055'. Well flow increases to 910 mcf @ 80 psi. POOH. Break off lubricator and lay down gun, all shots fired. Arm and RIH with 9' 2.75" gun. Correlate to open hole log and send to town for correction. On depth. Well flowing 950 mcf @ 80 psi. Perforate BEL_20 from 1667-1676'. Rate increases to 1100 mcf POOH. Break off lubricator and lay down gun, all shots fired. Arm and RIH with 8' 2.75" gun. Rate is down to 800 mcf. Have trouble getting down at 70'. Work tools through, sitting down soft, seems like ice/slush. Rate has gradually dropped to 550 psi. Call town and discuss, suspect that we shot water. POOH with 8' 2.75" gun. Operator arrives and shuts well in. Break off lubricator and lay down gun. Disarm gun. Call AKEL to start preparing materials for 4.5" permanent patch. Secure location and SDFN. 12/23/2021 - Thursday AKEL crew arrives at facility and obtains permit, TGSM. Fire up equipment and rig up eline. RIH with junk basket and 3.75" gauge ring. Tag at 2168' ELMD correlated to open hole log. No sand production during yesterday's post-perf flowback. POOH. Break off lubricator and lay down same. Make up and RIH with 16' element to element 4-1/2" patch assembly (OD: 3.80" ID: 3.25"). Get hung up with bottom of patch at top of B2 perf interval (1667'). Work tools for one hour but no luck passing through. POOH. Break lubricator and lay down same. Bottom sealing element of patch has 1/8" deep metal score marks. Rig down pressure control equipment, secure well and demobilize crew. Rig Start Date End Date Eline 12/22/21 3/3/22 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 5 50-133-20614-00 213-075 01/25/2022 - Tuesday Fire up truck from KGF. Mobilize to Paxton pad. Check in with Rig. PTW, JSA. Rig up cap string truck. Remove soap launcher from well head. Bench test foot valve with a cracking pressure of 1380-1500 psi. Install foot valve. Stab on well. PT stack and cap string wellhead adapter to 250/3000 psi. RIH and and set cap string at 1825' in tension. Install and set 3/8" cap string hanger. Rig down cap string truck. Off location. 02/14/2022 - Monday Fire up Capillary string truck at KGF 41-6 pad. Remove snow. Mobilize to Paxton pad. PTW, JSA with production. MIRU Capillary string truck. Slip SS tubing into injector head and stab on pack off assembly. Remove cap string hanger and secondary mechanical pack off rams. Pull 1825' of 3/8" capillary string to surface. Close master and swab valve. Rig down capillary string truck and park on the edge of pad. Location walk around complete. Turn well over to production. AKEL crew arrives at facility and obtains permit, TGSM. MIRU eline equipment and pressure test lubricator to 250 psi low / 1500 psi high. Arm and RIH with 9' Titan 2-7/8" gun loaded at 6 SPF with 16g charges. Correlate to open hole log and send to town for correction. Subtracted one foot per geologist instruction. Perforated BEL-20 from 1667-1676'. Initial: 156 psi. 5 min: 166 psi. 10 min: 173 psi. 15 min: 176 psi. POOH and lay down gun. All shots fired and gun was wet. Small amount of sand present in bullnose. Secure well and RDMO eline. 02/17/2022 - Thursday 01/12/22 - Wednesday AKEL move equipment over from Paxton 1 and rig up eline. Pressure test to 250 psi low / 1500 psi high. MU and RIH with GPT tool. Log baseline pressure/temperature pass from 1470-2120'. Initial WHP is 500 psi. Begin to flow well back to open top tank and log flowing up pass from 2120-1630'. Log flowing down pass from 1630-2120'. Log final flowing up pass from 2120-1450'. Initial fluid level at 1910', fluid level after blowing well down at 1550'. Send data to town for review. MU and RIH with 3" Magna-Range CIBP. Correlate to open hole log and set plug at 2020'. Tag plug, good tag. POOH. WHP is building at same rate as before the plug was set. Secure well and RDMO eline. Rig Start Date End Date Eline 12/22/21 3/3/22 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 5 50-133-20614-00 213-075 03/03/2022 - Thursday AKEL on location, PJSM and fill out permit. Rig up equipment. Check fire. MU baker 10 setting tool and CIBP. PT to 250 psi / 2500 psi, good test. RIH. Tag patch at 1663'. Pull correlation log from 1663' to 1300'. Send to town, approved. Set CIBP @ 1653'. Lost ~150 lbs of tension, good indication of set. POOH. MU 8' of 2-7/8" 6 spf, 60 deg phasing gun. Test fire tools. Stab on and RIH. 8.75' from CCL to top shot. Pull correlation log from 1650' to 1400'. Sent to town, approved. Shoot Beluga 13 from 1568' - 1576'. Initial - 195 psi, 5 min - 182 psi, 10 min - 177 psi, 15 min - 170 psi. POOH. Lay down guns, all shots fired. Guns are dry. Night cap on the well. Well currently flowing. Flow rate went to zero within 15 min. MU and run GPT to look for fluid level. Logged down plug. Found no fluid. POOH. MU 7' 2-7/8" 6 spf 60 deg phasing gun. 9.7' CCL to top shot. RIH. Pull correlation log from 1630' to 1390'. Send to town, approved. Shoot Beluga 10L from 1543' to 1550'. Good indication of fire. Pressures I - 27 psi, 5 min - 28 psi, 10 min - 30 psi, 15 min - 31 psi. POOH. Lay down guns. All shots fired, guns dry. MU 10' 2-7/8" 6 spf 60 deg phasing gun. 8' CCL to top shot. RIH. Pull correlation log from 1630' to 1380'. Send to town, approved. Shoot Beluga 10U from 1528' to 1538'. Good indication of fire. Pressures: Initial - 43 psi, 5 min - 68 psi, 10 min - 86 psi, 15 min - 101 psi. POOH. Lay down guns. All shots fired. Guns dry. RDMO. Kaitlyn Barcelona Hilcorp North Slope, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 564-4389 E-mail: kaitlyn.barcelona@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal Received By: Date: DATE: 3/08/2022 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL Paxton 5 (PTD 213-075) PERF 2/17/2022 Please include current contact information if different from above. 213-075 T36408 Meredith Guhl Digitally signed by Meredith Guhl Date: 2022.03.08 14:04:43 -09'00' Kaitlyn Barcelona Hilcorp North Slope, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 564-4389 E-mail: kaitlyn.barcelona@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal Received By: Date: DATE: 2/15/2022 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL Paxton 5 (PTD 213-075) Magna Range Plug 01/12/2022 Please include current contact information if different from above. 37' (6HW Received By: 02/15/2022 By Abby Bell at 11:42 am, Feb 15, 2022 Kaitlyn Barcelona Hilcorp North Slope, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 E-mail: kaitlyn.barcelona@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal Received By: Date: DATE: 1/13/2022 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL PAXTON-05 (PTD 213-075) CIBP 12/26/2021 Please include current contact information if different from above. 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N G N z m z i® CO V/ J p Q Z C Z O F— u H /I� Q a z E II D U E Z e I 3 M N I KO > m O F- 1 O TO-1 N 1 0 .` cod Dwo .2 N@ 0 E E I •a 0 O O ¢ a 0 0 • • Release of Confidential Data Coversheet Well Name: Ninilchik Unit Paxton 5 PTD: 213-075 E-Set: 23607, 23608, 23609, 23720, 24498 ✓ Physical data labeled with PTD, E-Set# Conf. entry: various ✓ Import CD data to RBDMS / Confidential (incomplete) entry in Well Data List notes / E�' Import to DigLogs via E-Set tab C5//Scan labeled data E Apply OCR text recognition ,Save to Well Log Header Scans ©/ New"complete" entry in Well Data List notes Logged by: Meredith Guhl Fully logged: 1/21/2016 9 eth Nolan Hilcorp Alaska, GeoTech 3800 Centerpoint Drive Anchorage, AK 99503 Tele: 907 777-8308 trikfirp tI 4 i.I.T.t Fax: 907 777-8510 E-mail: snolan@hilcorp.com DATE 01/15/2016 To: Alaska Oil & Gas Conservation Commission RECEIVED I O/CG D Meredith Guhl G \/ Petroleum Geology Assistant JAN 15 2016 333 W 7th Ave Ste 100 Anchorage, AK 99501n®GCC DATA TRANSMITTAL Paxton #5 Log Prints Prints: 1. Borehole Volume Plot(Electronic file name: PAXTON-5_BHV_18SEP13.pdf)- 2.-3toOE3 2. Wavesonic(Electronic file name: PAXTON-5_WAVE_SONIC_18SEP13.pdf)- Z360e 3. Wavesonic(Electronic file name: PAXTON-5_WAVE_SONIC_24SEP13.pdf) Z3(006 4. Reservoir Description Tool (Electronic file name: PAXTON-5_RDT_24SEP13.pdf) 23c 'O I Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received B G Date: / 1 24 I 6 i Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Friday,January 08, 2016 1:39 PM To: 'Luke Keller' Cc: Davies, Stephen F (DOA) Subject: RE: Paxton 5, PTD 213-075, Paper Logs Required Importance: High Luke, Perhaps with the holidays my email got lost in the shuffle?The paper logs listed below are required to be submitted by January 22, 2016. Please contact me if you have any questions. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave, Suite 100,Anchorage, AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. From: Guhl, Meredith D (DOA) Sent: Friday, December 18, 2015 12:26 PM To: 'Luke Keller' Cc: Davies, Stephen F (DOA) Subject: Paxton 5, PTD 213-075, Paper Logs Required Luke, I am reviewing the well history file and data for Paxton 5 in advance of the release of the well after 12/23/2015. During my review I noted that the following paper logs were not submitted previously. 1. Borehole Volume Plot(Electronic file name: PAXTON-5_BHV_18SEP13.pdf) 2. Wavesonic(Electronic file name: PAXTON-5_WAVE_SONIC_18SEP13.pdf) 3. Wavesonic(Electronic file name: PAXTON-5_WAVE_SONIC_24SEP13.pdf) 4. Reservoir Description Tool (Electronic file name: PAXTON-5_RDT 24SEP13.pdf) 1 • Per Regulation 20 AAC 25.071 (b)(6isepia and a reproduced copy of all logs run, including common derivative formats such as tadpole plots of dipmeter data and borehole images produced from sonic or resistivity data, and including composite log formats;however, copies of velocity surveys and experimental logs need not be included;an electronic image file in a format acceptable to the commission may be substituted for the sepia; which means that a reproduced/hard/paper copy of all logs run are required,whether the well is newly drilled,exploration,or development. Please submit the four paper logs listed above by January 1, 2016,to my attention. If you have any questions, please contact me. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave,Suite 100,Anchorage,AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl(caalaska.gov. 2 • • Guhl, Meredith D (DOA) From: Decker, Paul L(DNR) Sent: Tuesday, December 15, 2015 11:29 AM To: Guhl, Meredith D (DOA) Cc: Bettis, Patricia K (DOA); Davies, Stephen F (DOA) Subject: RE: Paxton 5, PTD 213-075, Extended Confidentiality? Hi Meredith, DNR has not received a request for extended confidentiality on Paxton-5, PTD 213-075. Thanks, -Paul From: Guhl, Meredith D (DOA) Sent:Tuesday, December 15, 2015 9:19 AM To: Decker, Paul L(DNR)<paul.decker@alaska.gov> Cc: Bettis, Patricia K(DOA)<patricia.bettis@alaska.gov>; Davies,Stephen F (DOA)<steve.davies@alaska.gov> Subject: Paxton 5, PTD 213-075, Extended Confidentiality? Hello Paul, Paxton 5, PTD 213-075,operated by Hilcorp, is due for release after 12/23/2015. Has extended confidentiality been requested? Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave, Suite 100,Anchorage, AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 1 . RECEIVED STATE OF ALASKA AUG 19 2014 ALA OIL AND GAS CONSERVATION COM SIGN GAS WELL OPEN FLOW POTENTIAL TEST REPe C la.Test: Li Initial U Annual U Special lb.Type Test: U Stabilized U • a• I U Multipoint ❑Constant Time ❑Isochronal El Other: 2.Operator Name: 5. Date Completed: 11. Permit to Drill Number: Hilcorp Alaska, LLC 11/23/2013 213-075 3.Address: 6. Date TD Reached: 12.API Number: 3800 Centerpoint Drive Suite 1400,Anchorage,AK 99503 9/23/2013 50- 133-20614-00-00 4a. Location of Well(Governmental Section): 7.KB Elevation above MSL(feet): 13.Well Name and Number: Surface: 2990'FEL,801'FNL,Sec 13,T1S,R14W,SM,AK 166 Paxton#5 Top of Productive Horizon: 8. Plug Back Depth(MD+TVD): 14.Field/Pool(s): 382'FNL,2266'FWL,SEC13,T1S, R14W,SM,AK 2,499'MD(2,457'TVD) Ninilchik Total Depth: 9.Total Depth(MD+TVD): 287'FNL,2282'FWL,SEC13,T1S, R14W,SM,AK 2,618'MD(2,573'TVD) Undefined Beluga Gas 4b. Location of Well(State Base Plane Coordinates NAD 27): 10. Land Use Permit: 15. Property Designation: Surface: x- 206337.6 y- 2230561.45 Zone- 4 Surface agreement w/parcel fee owner Fee Lease(Ninilchik Unit) TPI: x- 206323.73 y- 2230891.13 Zone- 4 16.Type of Completion(Describe): Total Depth: x- 206341.87 y- 2230986.54 Zone- 4 4-1/2"monobore 17.Casing Size Weight per foot, lb. I.D. in inches Set at ft. 19.Perforations: From To 4-1/2" 12.6 3.98 2,610 2,121'-2,134',2,139'-2,142',2,150'- 18.Tubing Size Weight per foot, lb. I.D. in inches Set at ft. Beluga 50 2,156',2,164'-2,174',2,182'-2,186', 4-1/2" 12.6 3.98 639 2,210'-2,215' 20. Packer set at ft: 21.GOR cf/bbl: 22.API Liquid Hydrocardbons: 23.Specific Gravity Flowing Fluid(G): 639 N/A N/A 0.5569 24a. Producing through: 24b.Reservoir Temp: 24c.Reservoir Pressure: 24d.Barometric Pressure(Pa): Q✓ Tubing 0 Casing 66.5 F° 900.2 psia @ Datum 2,133' TVDSS psia 25. Length of Flow Channel(L): Vertical Depth(H): Gg: %CO2: %N2: %H2S: Prover: Meter Run: Taps: 2,133' 0.5569 0.149 0.218 0 26. FLOW DATA TUBING DATA CASING DATA Prover Choke Pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow No. Line X Orifice Size(in.) Size(in.) psig Hw F° psig F° psig F° Hr. 1. X 663 40 663 0 2 2. X 543 41 543 0 2 3. X 480 41 480 0 2 4. X 393 41 393 0 2 5. X Basic Coefficient Flow Temp. Super Comp. 1 Pressure Gravity Factor Rate of Flow v No. (24-Hour) hwPm Factor F Factor Q1 Mcfd Fb or Fp Ft 9 Fpv 1. 0.5569 785 2. 0.5569 1,514 3. 0.5569 1,886 4. 0.5569 2,397 5. Temperature for Separator for Flowing No. PrT Tr z Gas Fluid Gg G 1. 499.67 0.5569 2. 500.67 0.5569 3. 500.67 Critical Pressure 0.5569 4. 500.67 Critical Temperature 0.5569 5. Form 10-421 Rev. 7/2009 1i7, , 0.iy6NTINUED ON REVERSE SIDE Submit in Duplicate RBE MS AUG 2 0 2014 } • Pc Pc2 • Of 900.2 p{2 810360.04 No. Pt Pt2 Pc2-Pt2 Pw pw2 Pc2-Pw2 Ps Ps2 Pf2-Ps2 1. 722.4 521861.76 288498.28 2. 605.9 367114.81 443245.23 3. 553.3 306140.89 504219.15 4. 467.4 218462.76 591897.28 5. 25. AOF (Mcfd) 2,821 n 1 Remarks: I hereby certify that the foregoing is true and correct to the best of my knowledge. Signed a, :>, Title Reservoir Engineer Date 8/18/2014 DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producing face were reduced to zero psia Fb Basic orifice factor Mcfd/ hwPm Fp Basic critical flow prover or positive choke factor Mcfd/psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= - dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air=1.000), dimensionless Gg Specific gravity of separator gas(air=1.00), dimensionless GOR Gas-oil ratio, cu. ft. of gas(14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet(TVD) L Length of flow channel, feet(MD) n Exponent(slope)of back-pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut-in wellhead pressure, psia Pf Shut-in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia Q Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back-Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10-421 Revised 7/2009 Side 2 • • Well: PAX-5 Zone: Beluga 50 Ninilchik Unitt Multi-Rate Flow Test (11/27/13) (Pf^2- Gas Flowing Shut-in Ps^2) Choke Flowrate BHP Ps BHP Pf (psia^2 x AOF Size (%) Q (Mscf/d) (psia) (psia) DD% 10E3) n (Mscf/d) 0 900.2 900.2 0.00% 785 722.4 900.2 19.75% 288,498.3 1 2,205 1,514 605.9 900.2 32.69% 443,245.2 1 2,768 1,886 553.3 900.2 38.54% 504,219.2 1 3,031 2,397 467.4 900.2 48.08% 591,897.3 1 3,282 2,821 From Form 10-421: AOF=Q*[Pf^2/(Pf^2-Ps^2)]^n c � m W Q a n w w C.) v -, N CU rL o. V' O 0 4 O LL < c o o. • • L O C 4U CIS � O ♦) e N V� f0 O Q CD N • co 0 0. E U) to l0 -I m co N N aaa Q mc ca o 2 "a 'N a L = n C) r S �o o < Y �s N W cn n� j o O4 ■ N i �U 07 00 o (d3Iz!sd906) • r Gas Rate(Mscfd) 0 0 0 0 9 0 0 0 0 0 0o o0 0 0 0 0 0 0 o O o 0 0 0 0 0o N O 00 CO N O O) CO N O O O O O M M N N N N N r r r r r W ocr O I I I I I I I I I F -+—I 1 1 1 -1 I I I i I– I I I I I I I 1 1 1 1 1 O CO N 0 r 0 O N 0 r 0 .- 0 0 r er 3 O o °O LL o 0 -a .,- a a W ea N O 0 O CO O a O N 07 O co Qt O CO r o • ••••Mw«• m ' LL o c v, W o 0 A rn 0 0 L 0 p r Q n N o �k _ ._ .. O oeseims 3 00 ILL • • • • , Co rn v c w rn rn . ui rn r O o •••M • I u_ 'a C W v o m o Q m O O w COi a w M � a C O �a R N v - M T N• a• r co O 0 o N a r m a 0 o � _d' j`m I CD N y -O y o m d r csi 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (Dom m? CO M N < 0 O CO n CO CO CO M N r 0 T CO n CO CO .1 M N r 0 0) CO nLj n N. n n n n n CO CO CO CO CO CO CO CO CO CO 1.11 CO ID CO 1.0 CO 10 CO CO LO a a a ((e)!sd)aJnssaad aoe}pues 1) STATE OF ALASKA ? d. k , AL OIL AND GAS CONSERVATION COMA ION REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon Li Repair Well U Plug Perforations u Perforate Other ULk( ) 4, Performed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac ❑ Waiver ❑ Time Extension❑ Change Approved Program ❑ Operat.Shutdown❑ Stimulate-Other ❑ Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development Q Exploratory ❑ 213-075 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,Alaska 99503 • 50-133-20614-00 7.Property Designation(Lease Number): • 8.Well Name and Number: Surface Agreement W/Parcel Fee Owner Paxton#5 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): IA e,S3 Lw4eL..leoo L N/A Ninilchik Field/Undefined Sterling Pobbl 11.Present Well Condition Summary: Total Depth measured i 2,618 feet Plugs measured N/A feet true vertical 2,573 feet Junk measured N/A feet Effective Depth measured • 2,499 feet Packer measured 639 feet true vertical 2,457 feet true vertical 638 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 77' 10-3/4" 77' 77' 5,210psi 2,480psi Surface 780' 7-5/8" 780' 778' 6,890psi 4,790psi Intermediate Production 579' 4-1/2" 579' 578' 8,430psi 7,500psi Liner 2,031' 4-1/2" 2,610' 2,560' 8,430psi 7,500psi Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) 4-1/2" 12.6#/L-80/IBT 581' 580' 567'(MD) 153'(MD) Packers and SSSV(type,measured and true vertical depth) Liner Top Packer 566'(TVD) Halliburton SSSV 153(TVD) 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A RBDM MAY 1 3 2014 Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 2,697 2.7 0 176 Subsequent to operation: 0 4,223 13 0 180 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run N/A Exploratory Li Development❑✓ " Service ❑ Stratigraphic ❑ Daily Report of Well Operations X 16.Well Status after work: Oil ❑ i Gas ❑✓ WDSPL❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: 3P.1— OI 7 Contact ` Paul C n Email pchan(a7hilcorp.com Printed Name Y , f aul Chan Title Operations Engineer Signature Phone 777-8333 Date 3/14/2014 Form 10-404 Revised 10/2012 /--- 6 '11-/Y Submit Original Only • • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date Paxton 5 50-133-20614-00 213-075 1/16/14 1/16/14 Daily Operations.. 1/15/2014-Wednesday No operations to report. 1/16/2014-Thursday Mobe to location. Spot equipment. Rig up lubricator, PT to 250psi low and 2,500psi high. RIH w/3-3/8"x12' (loaded with 3- 1/8" charges), 6 spf, 60 deg phase and tie into Pollard perf record record log and tools set down at 154' (SSSV) POOH. Got tools and man coming out to pull SSSV. RIH, latch and pull WLR SSSV at 154'. Send valve to be re-dressed. RIH w/3-3/8"x12' (loaded with 3-1/8" charges), 6 spf, 60 deg phase and tie into Pollard perf record record log dated 11-23-13. Spot gun from 1,928'to 1,916' per Final Approved Perf Request Form dated 10/29/13 by Geologist. TP 182psi at 2.9 million. Fired gun and saw no increase. POOH. RIH with 20' gun and shot rest of zone from 1,916'to 1,896"and got tubing pressure 186psi with 3.2 million rate. RIH w/3-3/8"x17' (loaded with 3-1/8" charges), 6 spf, 60 deg phase and tie into Pollard perf record record log dated 11-23-13. Spot gun from 1,838'to 1,855' per Final Approved Perf Request Form dated 10/29/13 by Geologist. TP 182 psi at 2.9 million. Could not quite get well pinched back to 500psi FTP so shut well in and fired perf gun. Got gun moving and brought well back up. Field personnel had well flowing 4 million at approx 210psi. Rig down lubricator and cleaned up work area. 1/17/2014- Friday No operations to report. 1/18/2014-Saturday No operations to report. 1/19/2014-Sunday No operations to report. 1/20/2014- Monday No operations to report. 1/21/2014-Tuesday No operations to report. Ninilchik Unit 1110 Well: Paxton 5 II • SCHEMATIC Last Completed: 12/5/2013 Hilcorp Alaska,LLC PTD: 213-075 CASING DETAIL RKB:MSL=19 Size Type Wt/Grade/Conn ID Top Btm 10-3/4" Conductor 45.5/L-80/Weld Surf 77' 71 Ii IX? 1 7-5/8' Surface 29.7/L-80/Butt 6.875 Surf 780' I " 4-1/2" Liner 12.6/L-80/DWC/C 3.98 579' 2,610' :4.1:17.(1 TUBING DETAIL 4 ,, 4-1/2" Tubing 12.6/L-80/IBT 3.98 Surface 579' :.,,,,,,Y,..)11 4. : JEWELRY DETAIL 10-3/4" p t, i q Y, '' r. ,, No Depth I.D. Item 10"V '' 1 19' N/A Hanger 2 153' 3.813" Halliburton SSSV �a i 2 �'' e' ',1t 3 567' N/A Liner Top Packer i4, PERFORATION DETAIL " �' Sands Top(MD) Btm(MD) Top(TVD) Btm(TVD) FT Date Status Itr„49 °+ 1Beluga 40 1,838' 1,855' 1,807' 1,824' 17 1/13/2013 Open „: Beluga 45 1,896' 1,928' 1,864' 1,896' 32 1/13/2013 Open i'' �- 2,121' 2,134' 2,086' 2,099' 13 11/23/2013 Open .4 , 2,139' 2,142' 2,104' 2,107' 3 11/23/2013 Open ) .i 2,150' 2,156' 2,115' 2,121' 6 11/23/2013 Open `4 Beluga 50 2,164' 2,174' 2,128' 2,138' 10 11/23/2013 Open 2,182' 2,186' 2,146' 2,150' 4 11/23/2013 Open 2,210' 2,215' 2,147' 2,179' 5 11/23/2013 Open OPEN HOLE/CEMENT DETAIL F 7-5/8" Cmt w/54 sks in 9-7/8"Hole-Est.Top of Cement-Surface a e 4-1/2" Cmt w/84 sks in 6-3/4"Hole-Est.Top of Cement- 579' 7-5/8" a i ii 1 4. agt } Beluga 40 Beluga 45 tl , I•Beluga 50 # i" TD=2,618'MD/2,573'TVD PDTD=2,499'MD/2,457'ND Created By:TDF 3/14/2014 u>ay_ tea® 0 0 .4TFE/STATE / ��- c`, ,..., ,li , /-,E `'yew - `-� L ` , _ I �_,e_2 a1 \— IIf 333 West Seventh Avenue •�` - ( O\'I RNOR SEAN PARNE' I. Anchorage Alaska 99501-3572 ,FF��t Win 907 279 1A33 '',1t-,--'`‘It-at Mike Dunn Operations Engineer Hilcorp Alaska, LLC 3 0 S' 3800 Centerpoint Drive, Suite 100 .) Anchorage, AK 99503 Re: Ninilchik Field, Beluga Undefined Pool, Paxton#5 Sundry Number: 314-017 Dear Mr. Dunn: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, /°'77kji&_ Cathy P Foerster Chair DATED this 1 r day of January, 2014. Encl. 4 to R a(,,,,,,tY'+,vi'' • • ,lit E "�i 4 : • . STATE OF ALASKA On ' \ '1 ?% ALASKA OIL AND GAS CONSERVATION COMMISSION TS '' APPLICATION FOR SUNDRY APPROVALS AO G GC '� 20 MC 25.280 1.Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate 0 - Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing ❑ Other. Complete ❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Hilcorp Alaska,LLC Exploratory 2 Development ❑ 213-075 • 3.Address: Stratigraphic ❑ Service ❑ 6.API Number. 3800 Centerpoint Drive,Anchorage AK,99503 50-133-20614-00 7.If perforating: 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? CO 672 Will planned perforations require a spacing exception? Yes ❑ No Q • Paxton#5 • 9.Property Designation(Lease Number): 10.Field/Pool(s): Surface Agreement W/Parcel Fee Owner . Ninilchik Field/Beluga Undefined Pool• 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 2,618 2,573 2,499 2,457 N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 77' 10-3/4" 77' 77' 5,210psi 2,480psi Surface 780' 7-5/8" 780' 778' 6,890psi 4,790psi Intermediate Production Liner 2,031' 4-1/2" 2,610' 2,560' 8,430psi 7,500psi Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 4-1/2" 12.6#/L-80/IBT 579' Packers and SSSV Type: Packers and SSSV MD(ft)and ND(ft): 7.63"Packer and Halliburton SSSV 579(MD)/578(TVD)and 153(MD)/153(ND) 12.Attachments: Description Summary of Proposal Q 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory Q • Stratigraphic❑ Development ❑ Service ❑ 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: 1/14/2014 Oil ❑ Gas Q • WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: N/A WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: N/A GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Mike Dunn Email mdunnahilcorp.com Printed Name -, ike D j, I Title Operations Engineer Ar Signature / Phone 907-777-8382 Date 1/8/2014 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 31y .o1/ Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: RBDMS MAY 10 2014 Spacing Exception Required? Yes ❑ No I=1 Subsequent Form Required: /0 / ®li APPROVED BY Approved by:relef47 P COMMISSIONER THE COMMISSION Date: /-/St -/(,/ / / '/ ! /'� Submit Form and Form 10-403(Revised 10/2012) Approved�appi fiNAmths from the date of approval. Attachments in Duplicate \ door rV y • • Well Prognosis Well: Paxton 5 Hiicon)Alaska.LU Date: 1/8/2014 Well Name: Paxton 5 API Number: 50-133-20614-00 Current Status: New Drill Completion Leg: N/A Estimated Start Date: Jan 14th, 2014 Rig: N/A Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Tom Fouts 777-8398 Permit to Drill Number: 213-075 First Call Engineer: Mike Dunn (907)777-8382 (0) (907)351-4191 (M) Second Call Engineer: Tom Fouts (907)777-8398 (907) 351-5749 Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Current Bottom Hole Pressure: —909psi Maximum Expected BHP: —909psi @ 2,137' TVD (Based on Pax 5 RDT data on 9/24/2013) Max.Allowable Surface Pressure: —864psi (Based on 0.021 psi/ft gas gradient to surface) Brief Well Summary: This well was previously completed in Dec. 2013. Although the well is currently producing it has been decided W to add the Beluga 40 and 45 perforations to optimize well production. Justification: Wireline logs and pressure data indicate prospective gas reserves. Summary Procedure: Perforations 1. RU E-line and test lubricator to 250psi low/2,500psi high. 2. Run#1- RIH with GR/CCL& perf guns and correlate on depth, perforate±1,896'to±1,938'. Fire guns. ELOH.All following runs to be executed in the same manner. 3. Run#2- Perforate±1,838'to±1,855'. 4. RD Eline. 5. Turn well over to production &flow test well. Attachments: 1. As-built Well Schematic 2. Proposed Well Schematic . . ini • Ill c Well:Ninilhp SCHEMATIC Last Completed: 12/5/2013 pit..Alaska,LLCPTD: 213-075 CASING DETAIL RKB:MSL=79 Size Type Wt/Grade/Conn ID Top Btm 10-3/4"" Conductor 45.5/L-80/Weld Surf 77' r 7-5/8' Surface 29.7/L-80/Butt 6.875 Surf 780' 4-1/2" Liner 12.6/L-80/DWC/C 3.98 579' 2,610' : :f. TUBING DETAIL , 4-1/2" Tubing 12.6/L-80/IBT 3.98 Surface 579' ;;1." _ JEWELRY DETAIL 10-3/4" No Depth I.D. Item *.:Iii. 1 19' N/A Hanger «l 2 153' 3.813" Halliburton SSSV 3 579' N/A Packer ' PERFORATION DETAIL „ ` ,, ' Sands Top(MD) Btm(MD) Top(TVD) Btm(TVD) FT Date Status 2,121' 2,134' 2,086' 2,099' 13 11/23/2013 Open Iii � 2,139' 2,142' 2,104' 2,107' 3 11/23/2013 Open i-,) 4.'y:' 2,150' 2,156' 2,115' 2,121' 6 11/23/2013 Open Beluga 50 2,164' 2,174' 2,128' 2,138' 10 11/23/2013 Open ko4e , 2,182' 2,186' 2,146' 2,150' 4 11/23/2013 Open z . : .� 2,210' 2,215' 2,147' 2,179' 5 11/23/2013 Open * , OPEN HOLE/CEMENT DETAIL s",r" .r 7-5/8" Cmt w/54 sks in 9-7/8"Hole—Est.Top of Cement-Surface ''r � I 4-1/2" Cmt w/84 sks in 6-3/4"Hole—Est.Top of Cement- 579' 4 p *14 it ,4 Y .4,,X 7-5/8" - ) fi, ' Beluga 50 l- a ,J 1".V 4-1/.. " TD=2,618'MD/2,573'TVD PDTD=2,499'MD/2,457'TVD Created By:TDF 12/5/2013 • • Ninilchik Unit Well: Paxton 5 PROPOSED Last Completed: 12/5/2013 I li!carp Alaska,LLC PTD: 213-075 CASING DETAIL RKB:MSL=19 Size Type Wt/Grade/Conn ID Top Btm 10-3/4" Conductor 45.5/1-80/Weld Surf 77' i1 4 7-5/8' Surface 29.7/L-80/Butt 6.875 Surf 780' t A4-1/2" Liner 12.6/1-80/DWC/C 3.98 579' 2,610' ` 1 �� TUBING DETAIL 4-1/2" Tubing 12.6/L-80/IBT 3.98 Surface 579' 2 JEWELRY DETAIL 10-3/4" r; '4, �� No Depth I.D. Item a � ,O `{ 1 19' N/A Hanger ` '! 2 153' 3.813" Halliburton SSSV >. .. . 3 579' N/A Packer PERFORATION DETAIL ii. Sands Top(MD) Btm(MD) Top(TVD) Btm(TVD) FT Date Status ?' Beluga 40 ±1,838' ±1,855' ±1,807' ±1,824' ±17 Future N/A � e ' r' .4 Beluga 45 ±1,896' ±1,928' ±1,864' ±1,896' ±32 Future N/A *' 2,121' 2,134' 2,086' 2,099' 13 11/23/2013 Open 2,139' 2,142' 2,104' 2,107' 3 11/23/2013 Open p . .1, 2,150' 2,156' 2,115' 2,121' 6 11/23/2013 Open f Beluga 50 2,164' 2,174' 2,128' 2,138' 10 11/23/2013 Open 2,182' 2,186' 2,146' 2,150' 4 11/23/2013 Open is 2,210' 2,215' 2,147' 2,179' 5 11/23/2013 Open ` 47a OPEN HOLE/CEMENT DETAIL 3 9 7 -5/8" Cmt w/54 sks in 9-7/8"Hole-Est.Top of Cement-Surface I `m 4-1/2" Cmt w/84 sks in 6-3/4"Hole-Est.Top of Cement- 579' N# 1,gd 7-5/8" . tts: tPs 4 i Vii` F. 0, ri Li 4'4 ✓ 4 Bel 40 r,, M<, Beluga 45 . Beluga 50 0. i0 p. TD=2,618'MD/2,573'TVD PDTD=2,499'MD/2,457'TVD Created By:TDF 1/8/2014 • • 'n Hilcorp Alaska, LLC Post Office Box 244027 Anchorage,AK 99524-4027 3800 Centerpoint Drive Suite 100 Ay Anchorage,AK 99503 Phone: 907/777-8300 December 19, 2013 Fax: 907/777.-8301 Alaska Oil and Gas Conservation Commission 333 W. 7th Ave., Ste. 100 Anchorage,Alaska 99501 Re: Paxton #5 Form 10-407 Dear Commissioner: Please find enclosed the Well Completion Form 10-407 for the Paxton#5. Please do not hesitate to contact me should you have any questions or need additional information. Sincerely, ILCORP ALASKA, LLC_ / trab it , / ilpi Janise Barrett Drilling Technician (907)777-8389 jbarrett@hilcorp.com RECEIVED STATE OF ALASKA DEC 2 0 2013 ALWA OIL AND GAS CONSERVATION COIVWSION WELL COMPLETION OR RECOMPLETION REPORT AND 1 a.Well Status: l b.Well Class: Oil❑ Gas ❑✓ SPLUG ❑ Other ❑ Abandoned ❑ Suspended❑ .t 14 �� ott 20AAc 25.105 20AAc 25.110 DevelopmereO aA. Exploratory © r 4- GINJ ❑ WINJ ❑ WAG ❑ WDSPL❑ No.of Completions: _1 Service ❑ Stratigraphic Test ❑ a 2.Operator Name: 5.Date Comp.,Susp.,or 12.Permit to Drill Number: HILCORP ALASKA,LLC Aband.: 11/23/2013' 213-075 • 3.Address: 6.Date Spudded: 13.API Number: 3800 CENTERPOINT DRIVE,SUITE 100,ANCHORAGE,AK 99503 9/16/2013 50-133-20614-00-00 - 4a. Location of Well(Governmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 2990'FEL,801'FNL,Sec 13,T1S, R14W,SM,AK ' 9/23/2013 Paxton#5 Top of Productive Horizon:382'FNL,SEC13,T1S,R14W,SM,AK 8.KB(ft above MSL): 166' 15.Field/Pool(s): GL(ft above MSL): 148' Undefined Total Depth:287'FNL,2282'FWL,SEC13,T1S, R14W,SM,AK 9. Plug Back Depth(MD+TVD): Beluga Reservoir 2,499MD/2,457'TVD • 4b. Location of Well(State Base Plane Coordinates, NAD 27): 10.Total Depth(MD+TVD): 16.Property Designation: Surface: x- 206337.6 • y- 2230561.45 - Zone-4 • 2,618'(MD)/2,573'(TVD) ' Fee Lease(Ninilchik Unit) TPI: x- 206323.73 y- 2230891.13 Zone-4 11.SSSV Depth(MD+TVD): 17. Land Use Permit: Total Depth: x- 206341.87 y- 2230986.54 Zone-4 639'(MD)/638'(TVD) Surface agreement w/parcel fee owner 18. Directional Survey: Yes ❑✓ No ❑ 19.Water Depth, if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) NA (ft MSL) NA 21. Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/TVD: GR,Resistivity, Density,Neutron NA 23. CASING, LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE HOLE SIZE CEMENTING RECORD FT TOP BOTTOM TOP BOTTOM PULLED 10" 45.5 L-80 Surf 77' Surf 77' Driven ,N/A 7-5/8" 29.7 L-80 Surf 780' Surf 778' 9-7/8" 54%@ 15.3ppg NA 4-1/2" 12.6 L-80 579' 2,610' 579' 2,560' 6-3/4" 84*@ 12.5ppg NA 24.Open to production or injection? Yes ❑i No ❑ 25. TUBING RECORD If Yes, list each interval open(MD+TVD of Top and Bottom; Perforation SIZE DEPTH SET(MD) PACKER SET(MD/TVD) Size and Number): 4-1/2" 579' 639' See attached schematiccu 26. ACID,FRACTURE,CEMENT SQUEEZE, ETC. "j2-j) 3 Was hydraulic fracturing used during completion? Yes ❑ No Q , DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift, etc.): 11/24/2013 Flowing Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: 11/27/2013 1/24/1900 Test Period 0 2290 10 N/A N/A Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API (corr): Press. 391psi Opsi 24-Hour Rate ..-p 0 2290 10 N/A 28. CORE DATA Conventional Core(s)Acquired? Yes ❑ No E Sidewall Cores Acquired? Yes ❑ No If Yes to either question,list formations and intervals cored(MD+TVD of top and bottom of each),and summarize lithology and presence of oil,gas or water (submit separate sheets with this form,if needed).Submit detailed descriptions,core chips,photographs and laboratory analytical results per 20 AAC 25.071. RBEAS. MAR 2 0 20(1- Form 10-407 Revised 10/2012 ' 6,5-x`( CONTINUED 9f1.R VE SE b 4 2.ci/ Submit original only 6 • • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Yes No If yes,list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form,if needed, Permafrost-Top N/A N/A and submit detailed test information per 20 AAC 25.071. Permafrost-Base N/A N/A Tested BLG-50: Perforated following intervals of sand anf flow tested together: Middle Sterling 509 509 2,121'-2,134' 2,139'-2,142' Sterling A 956 952 2,150'-2,156' Beluga 1,503 1,481 2,164'-2,174' Belug 40 1,666 1,638 2,182'-2,186' Belug 45 1,897 1,865 2,210'-2,215' Belug 50 2,117 2,082 BLG-50 flow test rate:2,290Mcfd, 1 OBwpd,at 391 psi Formation at total depth: Beluga 2,618 2,573 31. List of Attachments: 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Luke Keller Email: Ikeller(C�hllCorp.Com Printed Name: Luke Keller r Title: Drilling Engineer 4 Signature: (rf Phone: (907)777-8395 Date: a 8/2013 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 b: Classification of Service wells: Gas Injection,Water Injection,Water-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection,Observation,or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI(Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval(multiple completion),so state in item 1,and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing,Gas Lift, Rod Pump, Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other(explain). Item 28: Provide a listing of intervals cored and the corresponding formations,and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation,and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 10/2012 ' • • Ninilchik Unit 111 Well: Paxton 5 SCHEMATIC Last Completed: 12/5/2013 Hilcorp Alaska,LLC PTD: 213-075 CASING DETAIL RKB:MSL=19 Size Type Wt/Grade/Conn ID Top Btm 10" Conductor 45.5/L-80/Weld Surf 77' *4� ° 7-5/8' Surface 29.7/L-80/Butt 6.875 Surf 780' 4-1/2" Liner 12.6/L-80/DWC/C 3.98 579' 2,610' TUBING DETAIL g.. « ^- 4-1/2" Tubing 12.6/L-80/IBT 3.98 Surface 579' fid, JEWELRY DETAIL 10-3/4" *A I ...1,7' (, + No Depth I.D. Item ' 1 19' N/A Hanger x i7 4'f 2 153' 3.813" Halliburton SSSV 3 639' N/A Packer ' ti PERFORATION DETAIL *4i Sands Top(MD) Btm(MD) Top(TVD) Btm(ND) FT Date Status " 1 11 2,121' 2,134' 2,086' 2,099' 13 Open 11/23/2013 k, •°` 1 2,139' 2,142' 2,104' 2,107' 3 Open 11/23/2013 2,150' 2,156' 2,115' 2,121' 6 Open 11/23/2013 klii 5W. Beluga 50 2,164' 2,174' 2,128' 2,138' 10 Open 11/23/2013 2,182' 2,186' 2,146' 2,150' 4 Open 11/23/2013 ' ' 2,210' 2,215' 2,147' 2,179' 5 Open 11/23/2013 * ' r OPEN HOLE/CEMENT DETAIL { ' + 7-5/8" Cmt w/54 sks in 9-7/8"Hole—Est.Top of Cement-Surface 1" 1 4-1/2" Cmt w/84 sks in 6-3/4"Hole—Est.Top of Cement- 579' rt ' , 7-5/8" o r (s*: .,::: P l yy $ ,, Beluga 50 4-1/2 TD=2,618'MD/2,573'ND PDTD=2,499'MD/2,457'ND Created By:TDF 12/5/2013 • 40, 17) r), I) f "sc:111 . . 11in eav e Nece,Y 7( Tt,„ci 6.oci,6;14 Iti° 540-e tlA eAt, 1)6( ild1;doi 3\., • • • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date Paxton #5 50-133-20614-00-00 213-075 9/15/13 Daily Operations: u Wednesday,September 11, 2013 MIRU Thursday, September 12, 2013 MIRU Friday, September 13, 2013 MIRU Saturday,September 14, 2013 MIRU Sunday, September 15, 2013 Continue Rigging up: Rig accepted on Paxton#5 at 12:00 hrs. AOGCC rep Lou Grimaldi waived witness to diverter function test @ 18:02 hrs. Monday, September 16, 2013 • • Finish installing bell nipple. install 4" ball valve on conductor. Complete rig acceptance inspection. ; Function divrter and knife valve, 3 seconds to open on knife valve, 12 seconds to close on diverter. ; Load directional tools on catwalk. P/U BHA#1, 9 7/8" bit. ;Adjust torque tube so its centered over well. ;Conduct rig evacuation drill. All personel muster to safe area.1 min 30 sec. AAR: Good response time. No roster, need roster for correct head count. ; Perform accumulator drawdown test. Check N2 backup system. Submit diverter test form to AOGCC.;Continue to P/U BHA#1. Scribe mud motor. 1.5 deg. P/U 1 std DP. M/U top drive. ; Break circulation. Pump 250 GPM,Tag TD @ 96'. Spud well. Slide from 96'to 106' pumping 300 GPM, 288 PSI. Monitor cellar. ; Drill 9 7/8" hole from 106'to 142' pumping 450 GPM at 500 psi. 30 rpm,WOB 5-10K, Pump 10 bbl hi vis sweep and circulate out before connection. ; Increase pump to 500 GPM, 668 PSI. Continue drilling from 142'to 204'w/ enough room to M/U rest of BHA. Pump 10 bbl sweep. 50% increase at sweep returns. Unable to get survey. ; Lost power to top drive,found robotics cable from top drive came unplugged. LOTO and re-plug. check all plug connections.Top drive operational. ; POH w/2 stds HWDP. M/U remaining BHA. NMDC, NM stab, cannot get past 125'while p/u RIH w/BHA. L/D NMDC. Link tilt on elevators not aligned. ; Link tilt cylinder bent, C/O cylinder. Tuesday,September 17,2013 "Finish C/O link tilt cylinder. ;Wash and ream from 115'to 204',stand back HWDP. M/U remaining BHA#1, NMDC,float sub and jars. ; Drilling 9 7/8" hole from 204'to 396'. Pumping 430 gpm, 650 psi. 60 rpm,WOB 15K.Torque 4.5k Pump hi vis sweeps at every connection to cleanup hole. ;Slide from 396'to 425', MTF 348, WOB 12K, pumping 500 gpm, 650 psi. diff 30. ; Drilling from 425'to 459' using same parameters rotating. ; Slide from 459'to 486', MTF 349,WOB 15K, pumping 500 gpm, 700 psi, diff 50 psi. ; Drilling from 468'to 545', 15 RPM,torque 5k. Pumping 490 gpm,800 psi. Continue pumping hi vis sweeps at every connection. ;Trouble shoot MWD interference. Clean pump suction screens. ; Drilling from 545'to TD at 793' rotating 70 rpm. WOB 11K. Pumping 490 gpm, 900 psi. UP 60K, S/O 45K, ROT WT off bottom 45K. Off bottom torque 4k @ 30 rpm. ;Circulate hole clean while working pipe. Pump 10 bbl hi vis sweep.30% increase at returns. ; Breaking off top drive,saver sub broke out. remove saver sub clamp and re-torque saver sub to 23k. C/O dies and reinstall clamp. ;Wiper trip pumping out of hole, pulling 10 stds to BHA at 181'. 20K overpull at 635',wash and cleanup. ; RIH to TD @ 793',washing last jt down. ; Circulate hole clean. Pump 15 bbl hi vis sweep. 5% increase at returns, back 50 stks over caluculated. ; POH pumping.stand back 10 stds. ; L/D MWD tools, mud motor and bit. ; Clear and clean rig floor. Move casing off pipe rack for access to catwalk. Clear catwalk. ; PJSM, R/U HES logging tools." • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date Paxton 5 50-133-20614-00 213-075 9/11/13 Daily OOperationsr 1- -4 tt 9/18/2013-Wednesday Rig up Halliburton e-line. Run quad combo logs as follows,Gamma telemetry, Dual spaced Neutron,Spectral Density, WaveSonic, Resistivity,tagged fill at 764'. Rig down Halliburton e-line. Pick up clean out BHA#2 and trip in hole,tagged fill at 760'. Wash to bottom w/o rotating, circ bottoms up, 5%cuttings increase, pump hi vis sweep with small amount of cutting increase. Trip out, unable to pull pipe without pumping, pump out to 350', having difficult time moving pipe after shutting down pumps, decide to go back to bottom,tripped in to 778' (fill)without issue. Wash 15'to bottom, circ to clean hole. Trip out of hole having to pump out of hole from 793'to 180',turn elevators, C/O elevator inserts. PJSM. L/D BHA#2. Service rig,clear and clean rig floor. Load BHA off catwalk. PJSM, R/U casing equipment. Pull 10" ID wear ring. Load casing back on pipe rack. Make casing hanger dummy run. 20.7 ft. L/D same. PJSM, p/u and run 7-5/8" L-80 29.7ppf casing per tally and well program. Baker lock shoe track. M/U @ optimum torque of 7,630 ft/Ibis. Verify float collar holding. Install 2 centralizers 10'f/ea. end on shoe jt, install 1 centralizer mid tube over stop collar above and below flt collar. Every other joint past that to 300'. Fill pipe every joint. Install 9 centralizers total, run 18 jts 7-5/8" casing. M/U landing jt. P/U WT 45K. S/O WT 35K. RIH tagging at 773'. Attempt to P/U,solid tag at 763'. S/O to 771'. M/U cross over with FOSV. M/U topdrive, establish circ.wash to 778' @ 2'f/landing hanger. Circulate 1.5 casing volumes pumping 206 gpm at 30 psi @ full returns. R/D weatherford tools. R/U cementers. Load cementing head to rig floor. DSM witness loading plugs. Land hanger 20.7 ft in on landinging jt. L/D crossover and FOSV. M/U SLB cementing head. 9/19/2013-Thursday M/U SLB cementing head and lines. Pump 5 bbl water,test lines to 4,000psi(held), rig pump 24 bbl 10 ppg mudpush II, drop bottom plug, start pumping 12 ppg cmt at 2 bpm, at 12 bbl away lost prime and or packoff lines. (down for 1 hr.) resume pumping to 26 bbl.(out of lead), pump 28 bbl tail at 15.3 ppg at 3 bbl/min, pump 2.5 bbl at 13 ppg, drop top plug, displace with 9.5 ppg mud at 5 bbl/min for 25 bbl,slow down to 2 bbl/min to bump plug at 33 bbl (cal 32 bbl), press up to 1,000psi. Final circ press (500psi), hold for 5 min. Bled back.5 bbl,floats held,cip @,99:50 hr, did not get cement or mudpush back to surface. Rig down SLB cementers. Lay down landing jt,flush out wellhead, make up packoff and set same, run in lock down and inject plastic packing,test to 3,000psi f/ 15 min. held. Nipple down diverter system. Rig up Pollard wireline and run temp log to find TOC. Rig down Pollard. TOC is at 120'. Con't to nipple down diverter system. Clean up in cellar for welder. Set test plug over well. Welder cut hole in 10-3/4" conductor for top job. Cementers on location, PJSM, R/U cementers. Unable to get 1" pipe between 10-3/4" x 7-5/8" casing, use 3/4" hose running down to 33'. Batch cement @ 1:15. start pumping 15.8 ppg class G cmt at 01:30. Pump 6 bbls cement @ 1/4 bbl minute in 10 min intervals. 1.5 bbls back. 4.5 bbls in place. Cement @ top of conductor. CIP @ 03:40. Clean and flush lines. R/D cementers. PJSM. N/U 11" 5M BOPE. AOGCC inspector Jim Regg waived witness to BOP test. r • • 9/20/2013- Friday PJSM. N/U 11" 5M BOPE. Kill valves, kill line. HCR, 3" manual valve. PJSM, Continue to N/U BOPE. M/U choke hose, line to gas buster, rotary drain pan. Torque all flanges. Anchor BOP. Install bell nipple,flowline. C/O bails on topdrive. Continue to install flowline. R/U accumulator lines. Function test rams. PJSM. M/U 4-1/2"test jt. R/U test equipment,fill stack and lines with fresh water. Gas buster full of old mud. Cleanout same with vac truck. Open annulas valve and monitor. Pull check,Test BOPE. Pressure test annular to 250psi low/2,500psi high 5 min ea.Test upper VBR, kill valves,choke manifold valves, Lower IBOP, upper IBOP,full open safety valve, Dart valve to 250psi low/3,500psi high 5 min ea. Chart record all tests. AOGCC rep Jim Regg waived to witness test on 9-18-13 @ 9:46 am.Test witnessed by DSM. 9/21/2013-Saturday Continue testing BOPE. Perform choke bleed off test. Test HCR, manual choke, lower pipe, blind rams to 250psi low/3,500psi high f/5 min. ea. Drawdown test accumulator good. Rams were tested w/4.5" pipe. HCR and manual choke F/P,grease both valves, re-tested ok. Total safety checked and calibrated gas alarms. Close annulus valve, pull test plug, set wear bushing. Install bails and elevators, clear floor, prep to pick up BHA. Pick up BHA as follows. XR+smith bit, motor, stab, pony, ubho sub, slimpulse,flow sub, 2 nmdc,float sub,xo,4 HWDP,xo,jars,xo. RIH with HWDP to 693',tag float collar on depth. P/U to 688'. M/U top drive. Displace hole with new 9.7 ppg drilling mud,working pipe while pumping. Take old mud to cuttings box. PJSM. Space out HWDP center band under upper VBR. Close upper VBR. Circulate air out thru choke,shut in choke. Stage pressure up slowly to 3,300psi. Pipe moved up 5" moving string wt to 15k. Beed off pressure slowly thru choke. Verify no trapped pressure. Open upper VBR. Break off top drive, set 1 stand back. M/U top drive at floor level. Space out hardband, Chain and secure Top drive. Close VBR. Pressure up slowly to 3,423psi. Shut in at mud pump.Test 7- 5/8" casing for 30 min. Charted, bled off 31psi, Bleed pressure off thru choke. Open upper VBR. Unchain top drive. Service draworks and top drive. M/U stand of HWDP. Drill out shoe track,float collar at 693', cement f/694'to 778',shoe to 780', cleanout old rathole to 793'. Pumping 229gpm, 1,030 psi. WOB 5-10k. 30 RPM 2.5K torque. Drill 20' new formation from 793 to 813'. Circulate and condition mud for FIT. Obtain SPR#1 and#2 MP. POH to shoe @ 775',Conduct FIT for 12 ppg EMW. Close annular, circulate thru choke,shut choke in. Using test pump, pressure up on drill pipe to 96psi pumping 1/8 bbl. No bleed off. Chart 5 min. Bleed off pressure thru choke. Open annular, approx. 1/8 bbl returned at bleedback. Blowdown choke and gas buster. Drilling 6-3/4" hole from 813'to 950'. 9/22/2013-Sunday Drilling 6-3/4" hole f/950'to 1,590'. UP 60K, 5/O 54K. Rot 56K. Off bttm torque 5K. Pumping 250gpm at 1,175psi.WOB 10- 15K. Average ROP 65 FPH. Entered top of beluga formation at 1,344'. Continue drilling f/ 1,590'to 1,843. Pumping 250gpm, 1,310psi.80 RPM, 5.4K torque. WOB 11-15K. Diff 100 psi. Prep 4.5 liner. Continue drilling f/ 1,843'to 2,075', at 1,840' keep ✓i ROP @ 50 FPH for sample catching until TD. Slide time 6.11 hrs. Rotate time 8.75 hrs. P/U 64K,S/O 57K, ROT 60K. Off bttm torque 5.25K @ 80 RPM. WOB 8-15K. Average ROP @ 50 FPH. Pumping 254gpm at 1,200 psi. Currently 1.5 ft high, 2.5' left of plan. 9/23/2013-I Monday Drilling 6-3/4" hole f/2,075'to 2,436' up 75k, do 60k, rot 68k,tq 5k, pumping 250gpm @ 1,400psi, rop 50'/hr. Start having trouble to pickup string, bring lube up to 2%, no change. Pump hi vis sweep,sweep back in calculated strokes, no increase in / cuttings. Back ream to 1,793', pump nut plug while backreaming. Continue back reaming from 1,793'to 780'to 7-5/8" shoe. RIH on elevators f/780'to 2,374', clean,wash last stand down,tag fill at 2,415', wash and ream to bttm @ 2,436'. Drilling f/ 2,436'to TD @ 2,618'. Pumping 250gpm, 1,360 psi. WOB 10-15K. 80 RPM. 40 FPH. P/U 75K. S/O 65K. ROT 70K. Off bottom torque 6,500 @ 60 RPM. Pump 30 bbl HI VIS sweep around with 25 ppb nut plug. No increase in cuttings. Sweep back @ calculated strokes. Trip out on elevators for logs with Halliburton. S s 9/24/2013 -Tuesday Trip out on elevators to log with Halliburton. Stand back DC, lay down directional tools and bit. Clean and clear floor after wet trip. Clear catwalk for loggers. PJSM, Rig up Halliburton e-line and run tools as follows,Jars enhancer,Jars, Gamma, Neutron, Neutron, Density,flex jt, Wavesonic, Resistivity, hole finder. Tag bottom at 2,613', log up to shoe @ 780. L/D tools, Hilcorp engineer and Geologist read logs. PJSM w/ rig crew & HES logging crew. HES provided overhead tool inspection certs. M/U RDT logging tools. Logging down from 958' to 1,897'. Continue logging down from 1,897'to 2,212'. Monitor well while logging. POH, log 4 more points in the sterling f/800'to 900'. • • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date Paxton#5 50-133-20614-00-00 213-075 9/11/13 Daily Operations: � �� .�, . °.r a Wednesday,September 25, 2013 Continue logging with RDT f/700'to 800' POOH with logging equipment. Lay down logging tools, rig down Haliburton Service Rig Pick up clean out BHA as follows, re-run Smith XR+ bit, bit sub,stab, pony DC, 2-NMDC,float sub,XO,4-HWDP, jars,xo, 15- hwdp,XO Trip in F/705'-2555' Wash to 2618', 5'fill. Pump Hi Vis sweep W/nut plug.Small increase in cuttings. 1400 psi at 250 gpm. rotate and reciprocate Trip out of hole laying down DP. Flow check at shoe.(static) PJSM, L/D BHA#4. Clear and clean rig floor. PJSM. M/U cementing head on jt of drill pipe. Stand in derrick. R/U to run 4.5" liner. PJSM. P/U and run 4.5" DWC,12.6# L-80 liner per liner tally. Baker lock shoe track.Verify float is holding. RIH installing centralizer every other jt, 20 total. Use optimum torque @ 6000 ft lbs. Fill liner every jt. RIH to 741'. Circulate 1.5 liner volumes pumping 220 gpm 25 psi. P/U 27K. S/O 26K. continue P/U and run liner to 1997'. 49 JTS total. M/U 7.63" liner hanger/ packer assembly per Baker rep. Fill liner tie back sleeve with Pal mix.Wait 30 min f/mixture to setup. Thursday,September 26,2013 RIH w/HWDP to 2596' Pick up cement head stand and wash to 2610', 6' of fill would not wash out. Circulate and condition mud while rigging up cement crew PJSM, mix mud push II Cement with SLB. Pump 5 bbl water, press test lines to 4700 psi, pump 30 bbl mud push II with rig, pump 84 bbl 12.5 ppg cement at 3.5 bbl/min 2350 psi,drop plug,displace 24 bbl with 9.7 ppg at 5 bpm slow down to 2 bpm, bump plug with 34.5 bbl (calculated 33.9 bbl),final circ press 500 psi, press up to 2700 psi to set slips. cement to surface with 29 bbl displacement. String wt 48k, slack off to 25k to verify slips set, press up to 3800 psi to set packer, press up to 4200 psi to release running tool, pick up 2'to confirm. Closed annular and test annulus to 1500 psi for 10 min.(held). Press up to 500 psi and pick up to remove RS packoff bushing. Press did not drop until entire seal assy and stinger pull out of PBR,circ cement out of hole. Ran seal assy back in,visualy saw seals enter PBR, press up to 500 psi and picked up, no press loss until seal assy and entire stinger pulled free,CBU. CIP @ 1545 hrs. Rig down SLB,flush lines clear of cement. PJSM. L/D cementing head from derrick. L/D 18 JTS HWDP. L/D Baker liner running tool. M/U Stand DP with jetting tool.Jet BOP due to cement returns,function both pipe rams and annular. L/D jetting tools. Function blind rams.Attempt to flush choke manifold. Pull bonnet from valves, packed off with gravel,clear gravel from valves 2 &3, reinstall bonnets. PJSM. R/U Priority wireline unit. M/U CBL tools with lubricator. Close annular, pressure to 350 psi. RIH. Log from 42'to 575' Make 2nd logging run from 37'to 575'with 800 psi on wellbore. R/D loggers. Load 2 7/8"tools and equipment to rig floor. Load 2 7/8" drill collars and tubing onto pipe rack,SLM same. R/U floor equip for 2 7/8" BHA. Pressure test choke valves 1& 2 to 250/3500 psi 5 min. Chart record test. Friday,September 27, 2013 See completion summary. Saturday,September 28, 2013 See completion summary. Sunday,September 29,2013 See completion summary. Monday,September 30,2013 See completion summary. Tuesday,October 01, 2013 • i See completion summary. • • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date Paxton 5 50-133-20614-00 213-075 9/27/13 11/23/13 Daily Operations" .I _M # c. 9/25/2013-Wednesday See drilling report. 9/26/2013-Thursday See drilling report. 9/27/2013-Friday Strap and rack 2-7/8" tubing string. Pick up and RIH with 2-7/8" scraper assy. Run in hole to 1,980'. Rig down Weatherford equipment. Con't to run with 4-1/2" DP from derrick to 2,477'. Break circulating,wash cement containinated mud to surface. Wash and ream from 2,477'to 2,499' with pressure spikes at 2,499'. Pressure up without dropping off, kick out pump and work pipe, pressure dropped to 0 psi. Cont to circulate and wash to bottom and con't to pressure up. Pressure follows us up hole while picking up. Kick out pump and press drops off. PJSM for testing 7-5/8" x 4-1/2" casing. Set 1 std back. Space tool joint at rig floor. M/U top drive,close upper VBR. Anchor bails with 2 chains. R/U and Circulate air from choke thru gas buster. Shut in choke. Pressure up on casing to 3,500 psi. Found drilling line on draworks drum crossed. Set pipe in slips, hang blocks. Re-spool drilling line on drum. Test all eqipment. Complete and submit S-01 form. Decision made to test casing without string using blind rams. M/U stand from derrick. Break circulation,tag at 2,499'. Pump 25 bbl sweep. Displace hole with fresh water pumping 86gpm at 270psi, dump sweep returns. Make 2 circulations with clean water. POH from 2,499', 9 stds 4-1/2" DP, bringing 7-5/8" scraper and brush assembly to surface. Inspect assembly. RIH to 2,499'. Circulate and continue to clean casing. Circulate flushing out choke line. With clean fluid all the way around, pump 24 bbl chemical train per MI,followed with filtered 6% KCL, circulate until fluid has cleaned up. POH from 2,499', rack 9 stds 4-1/2" DP in derrick. L/D scraper, brush assy. R/U WFD 2-7/8" handling tools. POH, L/D 2-7/8"work string. 9/28/2013-Saturday Strap and rack 2-7/8"tubing string. Pick up and RIH with 2-7/8"scraper assy. Run in hole to 1,980'. Rig down Weatherford equipment. Con't to run with 4-1/2" DP from derrick to 2,477'. Break circulating,wash cement containinated mud to surface. Wash and ream from 2,477'to 2,499'with pressure spikes at 2,499'. Pressure up without dropping off, kick out pump and work pipe, pressure dropped to 0 psi. Con't to circulate and wash to bottom and con't to pressure up. Pressure follows us up hole while picking up. Kick out pump and press drops off. PJSM for testing 7-5/8"x 4-1/2" casing. Set 1 std back. Space tool joint at rig floor. M/U top drive,close upper VBR. Anchor bails with 2 chains. R/U and Circulate air from choke thru gas buster. Shut in choke. Pressure up on casing to 3,500 psi. Found drilling line on draworks drum crossed. Set pipe in slips, hang blocks. Re-spool drilling line on drum. Test all eqipment. Complete and submit S-01 form. Decision made to test casing without string using blind rams. M/U stand from derrick. Break circulation,tag at 2,499'. Pump 25 bbl sweep. Displace hole with fresh water pumping 86gpm at 270psi, dump sweep returns. Make 2 circulations with clean water. POH from 2,499', 9 stds 4-1/2" DP, bringing 7-5/8" scraper and brush assembly to surface. Inspect assembly. RIH to 2,499'. Circulate and continue to clean casing. Circulate flushing out choke line. With clean fluid all the way around, pump 24 bbl chemical train per MI,followed with filtered 6% KCL,circulate until fluid has cleaned up. POH from 2,499', rack 9 stds 4-1/2" DP in derrick. L/D scraper, brush assy. R/U WFD 2-7/8" handling tools. POH, L/D 2-7/8"work string. • • • 9/29/2013 -Sunday Continue to lay down 2-7/8"TBG. No abnormal wear on milling assy. Rig up and test production liner to 3,500psi for 30 min, lost 75 psi,charted. Rig down testing equipment. Rig service, inspect crown sheeves, derrick,traveling blocks. Pick up polish mill assy,trip in on 4-1/2" DP TO 579'. Polish PBR, pump at 165gpm, rotate at 40 rpm for first entry, rotate at 60 rmp for 2nd and third entry. Torque at 4.5K. Set down with 3K on top of ZXP hanger to remove any burs on hanger, increase in torque to 5.5 K. Displace annulus with inhibited packer fluid. POOH laying down DP, L/D polish mill assembly. R/U and pull short wear bushing. Load 4.5"tieback string onto pipe rack. Strap and tally same. R/U weatherford handling equipment. Prep FOSV w/ crossover to 4-1/2" IBT. PJSM. M/U 4.5"tie back assembly per baker rep. remove plastic wrap. Inspect for damage. P/U, drift and RIH with 13 jts 4.5" IBT, L80, 12.6ppf production tubing to 415'. M/U SSSV positioning valve for 151'. M/U SSSV control line. Attempt to pressure Test control line. Will not hold pressure. Break out SSSV. W/O Pollard wire line. Pollard WL on location @ 01:00, install dummy valve in SSSV. M/U SSSV and control line, Pressure test to 5,000 psi for 15 min. Continue RIH from 415'to 553'. Install landing jt. P/U 27K,S/O 25K. Circulate .25 BPM. Sting into tieback sleeve per Baker rep,shut down pump,tag @ 579'. Pressure up to 500 psi to verify tieback sleeve holding. Unsting. POH and L/D 2 jts. Spaceout with 4 pup jts. M/U 4.5" X 11"TBG hanger with pup jt per cameron rep. M/U control line. 7 ss bands in place. 9/30/2013-Monday Spaceout 4.5"tieback completion. Land hanger. Tbg tail stung into tieback sleeve with 5k down. Tail @ 579'. Top of SSSV @ 151.04', Cameron rep RILDS. 19' RKB. Up wt. 45K do wt. 27k. Rig up to test liner,test production bore to 1,500 psi for 30 min. Lost 25 psi,tie into 4-1/2" X 7-5/8" annular and test to 1,500 psi for 30 min. Lost 25psi,chart both. Set 2 way check, nipple down BOP. Continue to N/D BOPE. Install lifting plate on BOP. Inspect upper VBR. Start R/D equipment. Gas buster, pits. Load out BOPE from cellar. N/U 11" seaboard adaptor flange ser# H294425 and 4-1/16" cameron tree. Cameron rep test void to 3,000psi for 10 min. Test tree to 5,000psi for 5 min. Remove TWC. RDMO. R.D floor equipment,top drive, pits, ect . Rig released at 06:00 hrs. 10/1/2013-Tuesday No operations to report. • i Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date Paxton 5 50-133-20614-00 213-075 9/27/13 Daily Operations: 11/20/2013 -Wednesday No activities to report. 11/21/2013 -Thursday No activities to report. 11/22/2013 - Friday No activities to report. 11/23/2013 -Saturday Spot equipment and rig up lubricator. Pressure test to 250psi low/3,000psi high. Ran CCL/GR from 2,350' to 1,600'to cover short joint at 1,700'. Arm with conventional firing system. RIH with Run #1: 3-3/8x5 HC, 60 deg phase, 6 spf and tied into Halliburton CBL log dated 12-Oct-13. Spotted gun from 2,210'to 2,215' per Final Approved Perf Request Form, dated 10-29- 13 by Geologist, all subsiquint runs will be rtun using this information.TP 600psi. Fired gun and saw no psi change. POOH. TP: - 660psi. RIH with Run #2: 3-3/8"x4' HC, 60 deg phase, 6 spf. Spotted gun from 2,182' to 2,186'. TP 680 psi. Fired gun and TP went to 700 psi. POOH. TP: 820psi. RIH with Run #3: 3-3/8"x10' HC, 60 deg phase, 6 spf. Spotted gun from 2,164'to 2,174'. TP 840psi. Fired gun and no psi change. POOH. TP: 845psi. RIH with Run#4: 3-3/8"x6' HC, 60 deg phase, 6 spf. Spotted gun from 2,150' to 2,156'. TP 845 psi. Fired gun and no psi change. POOH. TP: 845psi. RIH with Run#5 &#6: 3-3/8"x3'/13' HC, 60 deg phase, 6 spf. Spotted gun from 2139'to 2142' and 2,121'to 2,134'. TP 845psi. Fired gun and went to 860psi . POOH. All shots fired on all runs. Rig down lubricator and clean up work area. 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NN [, O !CI OD 2 C ��yy{{pp��AA C 88 yy ~W r N r lA 0 0 U O E O N N O I,,, =0 OCOO 8 LL O {G�II NNO c W m O m vi 5 or :::! 2 OID W m O q "•-� m KN3 BCl0 Un IaDga2ovg N N I V NNN N C N g E c 8 0 �a o c a Q rn tt O U NN •ndon Ellison Hilcorp Alaska, GeoTech II 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Tele: 907 777-8339 Hikrorp Al k s,t,tA. Fax: 907 777-8510 E-mail: lellison@hilcorp.com DATE 11/12/2013 To: Alaska Oil & Gas Conservation Commission Makana Bender Natural Resource Technician 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTA Paxton #5 Elogs Prints: Cement Bond log Borehole Volume log Sonic Porosity (shallow section) Sonic Porosity (deep section) Dual Spaced Neutron Spectral Density Array Comp. Resistivity (shallow section) Dual Spaced Neutron Spectral Density Array Comp. Resistivity (deep section) Wavesonic Semblance Analysis (shallow section) Wavesonic semblance Analysis (deep section) RDT Pressure Transient Analysis CD: Final Well Data (3 Discs) Quad Combo, Semblance run date 18-24-SEP-2013 RDT run date 24-SEP -2013 RCBL run date 12-OCT-2013 Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: Date: endon Ellison Hilcorp Alaska, GeoTech II 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Tele: 907 777-8339 Ala4i..1. ; Fax: 907 777-8510 E-mail: lellison@hilcorp.com DATE 11/12/2013 To: Department of Natural Resources Sean Clifton 550 W 7th Ave, Ste 800 Anchorage, AK 99501 DATA TRANSMITTA Paxton #5 Elogs (3 discs) CD: Final Well Data Quad Combo, Semblance run date 18-24-SEP-2013 RDT run date 24-SEP -2013 RCBL run date 12-OCT-2013 Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: Date: • Paxton #5 MW Vs Depth 0 500 1000 Paxton#5 s a v 1500 v L 2000 2500 3000 - r- 8 g 9 10 11 12 13 14 Mud Density(ppg) • Paxton #5 Days Vs Depth 0 - 500 1000 " 1500 t +., a N 0 v L 3 H m v i) 2000 2500 3000 -- 3500 0 2 4 6 8 10 12 14 16 Days • • Hilcorp Energy Company CASING&CEMENTING REPORT Lease&Well No. Paxton#5 Date9/19/13 County Kenai State Alaska Supv. Zane Montague CASING RECORD TD 793.00 Shoe Depth: 780.00 PBTD: MD/'TVD Casing(Or Liner)Detail Setting Depths No.of Jts. Size Wt. Grade THD Make Length Bottom Top Float shoe 7 5/8 BTC Weatherford 1.64 780.00 778.36 2 7 5/8 29.7 L-80 BTC 83.64 736.73 694.72 Float collar 7 5/8 BTC Weatherford 1.37 _ 694.72 693.35 16 7 5/8 29.7 L-80 BTC 655.72 76.80 37.63 PUP 7 5/8 29.7 L-80 BTC 15.00 37.63 22.63 _ PUP 7 5/8 29.7 L-80 BTC 1.85 22.63 20.78 LANDING JT 7 5/8 29.7 L-80 BTC 20.54 20.78 0.24 Totals Csg Wt.On Hook: 84,000 Type Float Collar: WEATHERFORD No.Hrs to Run: 3.5 Csg Wt.On Slips: 84,000 Type of Shoe: WEATHERFORD Casing Crew: WEATHERFORE Fluid Description: 9.5 ppg water base Liner hanger Info(Make/Model): Liner top Packer?: Yes X No Liner hanger test pressure: Centralizer Placement: 2 ON SHOE JT,2 ON FLOAT JT,EVERY OTHER JT TO 300' CEMENTING REPORT Preflush(Spacer) Type: MUDPUSH II Density(ppg) 10 Volume pumped(BBLs) 24 Lead Slurry _ Type: Extended Yield: ' �� 2.44 ft3/sk Density(ppg) 12 Volume pumped(BBLs/sx) 26 Mixing/Pumping Rate(bpm): 2 Tail Slurry Type: Conventional Yield: I 1''"' 5"" 1.22 ft3/sk 1 Density(ppg) 15.3 Volume pumped(BBLs/sx) 28 Mixing/Pumping Rate(bpm): 4 I- Post Flush(Spacer) Type: None Density(ppg) Rate(bpm): Volume: cc E Displacement: Type: Mud Density(ppg) 9.6 Rate(bpm): 5 Volume(actual/calculated): 33/32 FCP(psi): 500 Pump used for disp: Halliburton Plug Bumped? X Yes No Bump press 500 Casing Rotated? Yes X No Reciprocated? Yes X No 100 %Returns during job Cement returns to surface? Yes X No Spacer returns? Yes X No Vol to Surf: Cement In Place At: 9:50 Date: 9/19/2013 Estimated TOC: Surface Method Used To Determine TOC: Preformed top job with 4.5 bbl bring cement to surface Preflush(Spacer) Type: Density(ppg) Volume pumped(BBLs) Lead Slurry Type: Density(ppg) Volume pumped(BBLs) Mixing/Pumping Rate(bpm): Tail Slurry w Type: Density(ppg) Volume pumped(BBLs) Mixing/Pumping Rate(bpm): co Post Flush(Spacer) o o Type: Density(ppg) Rate(bpm): Volume: w Displacement: 0) Type: Density(ppg) Rate(bpm): Volume(actual/calculated): FCP(psi): Pump used for disp: Plug Bumped? Yes No Bump press Casing Rotated? Yes _No Reciprocated? Yes No %Returns during job Cement returns to surface? Yes _No Spacer returns?_Yes No Vol to Surf: Cement In Place At: Date: Estimated TOC: Method Used To Determine TOC: ( • • CASING RUN IN TALLY WELL NAME: Paxton 5 DATE: CASING SIZE 7.625 inches WEIGHT 29.70 ppf CASING ID 6.875 inches GRADE L- 80 THREAD BTC CAPACITY 0.0459 bbls/ft TORQUE - OPTIMUM = 7630 MIN= DISPLACEMENT 0.0106 bbls/ft SHOE DEPTH 780.0 feet HOLE TD 793.0 feet MUD WT 9.40 ppg Joint Running Joint Depth BOUY FACTOR 0.86 Joint# Joint# Length Total Bottom Top REMARKS Bouyant Capacity Displmt in Hole on Rack feet feet feet feet weight bbls bbls Off Bottom 13.00 Block Weight = 65,000 Weatherford A shoe 1.64 1.64 780.00 778.36 Seria153904468 65,042 0.1 0.0 1 1 41.63 43.27 778.36 736.73 Centralizer X 2 66,105 2.0 0.5 2 2 42.01 85.28 736.73 694.72 Centralizer 67,178 3.9 0.9 Weatherford Model B Flt CI 1.37 86.65 694.72 693.35 402 Serial 54003477 67,213 4.0 0.9 3 3 41.50 128.15 693.35 651.85 Centralizer X 2 68,273 5.9 1.4 4 4 40.93 169.08 651.85 610.92 69,319 7.8 1.8 5 5 41.97 211.05 610.92 568.95 Centralizer 70,391 9.7 2.2 6 6 41.89 252.94 568.95 527.06 71,461 11.6 2.7 7 7 41.87 294.81 527.06 485.19 Centralizer 72,530 13.5 3.1 8 8 41.04 335.85 485.19 444.15 73,578 15.4 3.6 9 9 42.02 377.87 444.15 402.13 Centralizer 74,652 17.3 4.0 10 10 40.93 418.80 402.13 361.20 75,697 19.2 4.4 11 11 41.23 460.03 361.20 319.97 Centralizer 76,750 21.1 4.9 12 12 41.31 501.34 319.97 278.66 77,805 23.0 5.3 13 13 41.82 543.16 278.66 236.84 78,873 24.9 5.8 14 14 40.60 583.76 236.84 196.24 79,910 26.8 6.2 15 15 39.96 623.72 196.24 156.28 80,931 28.6 6.6 16 16 39.69 663.41 156.28 116.59 81,945 30.5 7.0 17 17 39.79 703.20 116.59 76.80 82,961 32.3 7.5 18 18 39.17 742.37 76.80 37.63 83,962 34.1 7.9 15.00 757.37 37.63 22.63 Pup jt. Pup on btm of 1.85 759.22 22.63 20.78 Hanger 20.54 779.76 20.78 0.24 Landing jt 19 19 41.40 41.40 0.00 -41.40 85,019 36.0 8.3 20 20 42.11 83.51 -41.40 -83.51 86,095 37.9 8.8 21 21 41.86 125.37 -83.51 -125.37 87,164 39.8 9.2 22 22 41.82 167.19 -125.37 -167.19 88,232 41.8 9.6 23 23 39.62 206.81 -167.19 -206.81 89,244 43.6 10.1 24 24 206.81 -206.81 -206.81 89,244 43.6 10.1 23 23 206.81 -206.81 -206.81 89,244 43.6 10.1 24 24 206.81 -206.81 -206.81 89,244 43.6 10.1 25 25 206.81 -206.81 -206.81 89,244 43.6 10.1 26 26 206.81 -206.81 -206.81 89,244 43.6 10.1 27 27 206.81 -206.81 -206.81 89,244 43.6 10.1 28 28 206.81 -206.81 -206.81 89,244 43.6 10.1 29 29 206.81 -206.81 -206.81 89,244 43.6 10.1 30 30 0.00 -206.81 -206.81 89,244 43.6 10.1 31 31 0.00 -206.81 -206.81 89,244 0.0 0.0 32 32 0.00 -206.81 -206.81 89,244 0.0 0.0 33 33 0.00 -206.81 -206.81 89,244 0.0 0.0 34 34 0.00 -206.81 -206.81 89,244 0.0 0.0 35 35 0.00 -206.81 -206.81 89,244 0.0 0.0 36 36 0.00 -206.81 -206.81 89,244 0.0 0.0 37 37 0.00 -206.81 -206.81 89,244 0.0 0.0 38 38 0.00 -206.81 -206.81 89,244 0.0 0.0 39 39 0.00 -206.81 -206.81 89,244 0.0 0.0 40 40 0.00 -206.81 -206.81 89,244 0.0 0.0 41 41 0.00 -206.81 -206.81 89,244 0.0 0.0 7 425 casing2a11) 9-20-13 7" CtiOg tally206.81 -206.81 89,2442'17/Q:013 3:10'.?M Joint Rug Joint Depth BOUYAkCTOR 0.86 Joint# Joint# Length Bottom Top REMARKS IIII Bouyant Capacity Displmt in Hole on Rack feet feet feet feet weight bbls bbls 43 43 0.00 -206.81 -206.81 89,244 0.0 0.0 44 44 0.00 -206.81 -206.81 89,244 0.0 0.0 45 45 0.00 -206.81 -206.81 89,244 0.0 0.0 46 46 0.00 -206.81 -206.81 89,244 0.0 0.0 47 47 0.00 -206.81 -206.81 89,244 0.0 0.0 48 48 0.00 -206.81 -206.81 89,244 0.0 0.0 49 49 0.00 -206.81 -206.81 89,244 0.0 0.0 50 50 0.00 -206.81 -206.81 89,244 0.0 0.0 51 51 0.00 -206.81 -206.81 89,244 0.0 0.0 52 52 0.00 -206.81 -206.81 89,244 0.0 0.0 53 53 0.00 -206.81 -206.81 89,244 0.0 0.0 54 54 0.00 -206.81 -206.81 89,244 0.0 0.0 55 55 0.00 -206.81 -206.81 89,244 0.0 0.0 56 56 0.00 -206.81 -206.81 89,244 0.0 0.0 57 57 0.00 -206.81 -206.81 89,244 0.0 0.0 58 58 0.00 -206.81 -206.81 89,244 0.0 0.0 59 59 0.00 -206.81 -206.81 89,244 0.0 0.0 60 60 0.00 -206.81 -206.81 89,244 0.0 0.0 61 61 0.00 -206.81 -206.81 89,244 0.0 0.0 62 62 0.00 -206.81 -206.81 89,244 0.0 0.0 63 63 0.00 -206.81 -206.81 89,244 0.0 0.0 64 64 0.00 -206.81 -206.81 89,244 0.0 0.0 65 65 0.00 -206.81 -206.81 89,244 0.0 0.0 66 66 0.00 -206.81 -206.81 89,244 0.0 0.0 67 67 0.00 -206.81 -206.81 89,244 0.0 0.0 68 68 0.00 -206.81 -206.81 89,244 0.0 0.0 69 69 0.00 -206.81 -206.81 89,244 0.0 0.0 70 70 0.00 -206.81 -206.81 89,244 0.0 0.0 71 71 0.00 -206.81 -206.81 89,244 0.0 0.0 72 72 0.00 -206.81 -206.81 89,244 0.0 0.0 73 73 0.00 -206.81 -206.81 89,244 0.0 0.0 74 74 0.00 -206.81 -206.81 89,244 0.0 0.0 75 75 0.00 -206.81 -206.81 89,244 0.0 0.0 76 76 0.00 -206.81 -206.81 89,244 0.0 0.0 77 77 0.00 -206.81 -206.81 89,244 0.0 0.0 78 78 0.00 -206.81 -206.81 89,244 0.0 0.0 79 79 0.00 -206.81 -206.81 89,244 0.0 0.0 80 80 0.00 -206.81 -206.81 89,244 0.0 0.0 81 81 0.00 -206.81 -206.81 89,244 0.0 0.0 82 82 0.00 -206.81 -206.81 89,244 0.0 0.0 83 83 0.00 -206.81 -206.81 89,244 0.0 0.0 84 84 0.00 -206.81 -206.81 89,244 0.0 0.0 85 85 0.00 -206.81 -206.81 89,244 0.0 0.0 86 86 0.00 -206.81 -206.81 89,244 0.0 0.0 87 87 0.00 -206.81 -206.81 89,244 0.0 0.0 88 88 0.00 -206.81 -206.81 89,244 0.0 0.0 89 89 0.00 -206.81 -206.81 89,244 0.0 0.0 90 90 0.00 -206.81 -206.81 89,244 0.0 0.0 91 91 0.00 -206.81 -206.81 89,244 0.0 0.0 92 92 0.00 -206.81 -206.81 89,244 0.0 0.0 93 93 0.00 -206.81 -206.81 89,244 0.0 0.0 94 94 0.00 -206.81 -206.81 89,244 0.0 0.0 95 95 0.00 -206.81 -206.81 89,244 0.0 0.0 96 96 0.00 -206.81 -206.81 89,244 0.0 0.0 97 97 0.00 -206.81 -206.81 89,244 0.0 0.0 98 98 0.00 -206.81 -206.81 89,244 0.0 0.0 99 99 0.00 -206.81 -206.81 89,244 0.0 0.0 100 100 0.00 -206.81 -206.81 89,244 0.0 0.0 101 101 0.00 -206.81 -206.81 89,244 0.0 0.0 102 102 0.00 -206.81 _ -206.81 89,244 0.0 0.0 103 103 0.00 -206.81 -206.81 89,244 0.0 0.0 104 104 0.00 -206.81 -206.81 89,244 0.0 0.0 105 105 0.00 -206.81 -206.81 89,244 0.0 0.0 106 106 0.00 -206.81 -206.81 89,244 0.0 0.0 107 107 0.00 -206.81 -206.81 89,244 0.0 0.0 108 108 0.00 -206.81 -206.81 89,244 0.0 0.0 109 109 0.00 -206.81 -206.81 89,244 0.0 0.0 110 110 0.00 -206.81 -206.81 89,244 0.0 0.0 7161715 casin1 dally 9-20-13 7" &gag tally206.81 -206.81 89,24112'170N 3 3:17APM ' Joint Rung Joint Depth BOUY�CTOR 0.86 Joint# Joint# Length Bottom Top REMARKS Bouyant Capacity Displmt in Hole on Rack feet feet feet feet weight bbls bbls 112 112 0.00 -206.81 _ -206.81 89,244 0.0 0.0 113 113 0.00 -206.81 -206.81 89,244 0.0 0.0 114 114 0.00 -206.81 -206.81 89,244 0.0 0.0 115 115 0.00 -206.81 -206.81 89,244 0.0 0.0 116 116 0.00 -206.81 -206.81 89,244 0.0 0.0 117 117 0.00 -206.81 -206.81 89,244 0.0 0.0 118 118 0.00 -206.81 -206.81 89,244 0.0 0.0 119 119 0.00 -206.81 -206.81 89,244 0.0 0.0 120 120 0.00 -206.81 -206.81 89,244 0.0 0.0 121 121 0.00 -206.81 -206.81 89,244 0.0 0.0 122 122 0.00 -206.81 -206.81 89,244 0.0 0.0 123 123 0.00 -206.81 -206.81 89,244 0.0 0.0 124 124 0.00 -206.81 -206.81 89,244 0.0 0.0 125 125 0.00 -206.81 -206.81 89,244 0.0 0.0 126 126 0.00 -206.81 -206.81 89,244 0.0 0.0 127 127 0.00 -206.81 -206.81 89,244 0.0 0.0 128 128 0.00 -206.81 -206.81 89,244 0.0 0.0 129 129 0.00 -206.81 -206.81 89,244 0.0 0.0 130 130 0.00 -206.81 -206.81 89,244 0.0 0.0 131 131 0.00 -206.81 -206.81 89,244 0.0 0.0 132 132 0.00 -206.81 -206.81 89,244 0.0 0.0 133 133 0.00 -206.81 -206.81 89,244 0.0 0.0 134 134 0.00 -206.81 -206.81 89,244 0.0 0.0 135 135 0.00 -206.81 -206.81 89,244 0.0 0.0 136 136 0.00 -206.81 -206.81 89,244 0.0 0.0 137 137 0.00 -206.81 -206.81 89,244 0.0 0.0 138 138 0.00 -206.81 -206.81 89,244 0.0 0.0 139 139 0.00 -206.81 -206.81 89,244 0.0 0.0 140 140 0.00 -206.81 -206.81 89,244 0.0 0.0 141 141 0.00 -206.81 -206.81 89,244 0.0 0.0 142 142 0.00 -206.81 -206.81 89,244 0.0 0.0 143 143 0.00 -206.81 -206.81 89,244 0.0 0.0 144 144 0.00 -206.81 -206.81 89,244 0.0 0.0 145 145 0.00 -206.81 -206.81 89,244 0.0 0.0 146 146 0.00 -206.81 -206.81 89,244 0.0 0.0 147 147 0.00 -206.81 -206.81 89,244 0.0 0.0 148 148 0.00 -206.81 -206.81 89,244 0.0 0.0 149 149 0.00 -206.81 -206.81 89,244 0.0 0.0 150 150 0.00 -206.81 -206.81 89,244 0.0 0.0 7 625 casing tally 9-20-13 7" casing tally 12/17/2013 3:17 PM • • Hilcorp Energy Company CASING&CEMENTING REPORT Lease&Well No. Paxton#5 Date 26-Sep-13 County Kenai State Alaska Supv. Zane Montague CASING RECORD TD 2618.00 Shoe Depth: 2610.00 PBTD: MD/'TVD Casing(Or Liner)Detail Setting Depths No.of Jts. Size Wt. Grade THD Make Length Bottom Top Shoe 41/2 12.6 L-80 DWC Weatherford 1.50 2,610.00 2,608.50 Top 1 41/2 12.6 L-80 DWC 41.56 2,608.50 2,566.94 Float Collar 4 1/2 12.6 L-80 DWC Weatherford 1.46 2,566.94 2,565.48 1 41/2 12.6 L-80 DWC 41.82 2,565.48 2,523.66 Landing Collar 4 1/2 12.6 L-80 DWC Weatherford 1.23 2,523.66 2,522.43 47 41/2 12.6 L-80 DWC _ 1,909.50 2,522.43 612.93 Hanger DWC Baker 33.67 612.93 579.26 Totals Csg Wt.On Hook: 23K Type Float Collar: Weatherford No.Hrs to Run: 3 Csg Wt.On Slips: 23K Type of Shoe: Float Casing Crew: Weatherford Fluid Description: 9.7 ppg water base Liner hanger Info(Make/Model): Baker ZXP with packer assy Liner top Packer?: X Yes _No Liner hanger test pressure: 1500 psi for 10 min Centralizer Placement: First 3 jts then every other one CEMENTING REPORT Preflush(Spacer) Type: Mudpush II Density(ppg) 10.5 Volume pumped(BBLs) 30 Lead Slurry Type: LiteCRETE Yield:/ %` 1.66 ft3 Density(ppg) 12.5 Volume pumped(BBLs/sx) 84/33 'Mixing/Pumping Rate(bpm): 3.5 Tail Slurry Type: Yield: 1 I Density(ppg) Volume pumped(BBLs/sx) Mixing/Pumping Rate(bpm): H Post Flush(Spacer) coH Type: Density(ppg) Rate(bpm): Volume: IL Displacement: Type: Mud Density(ppg) 9.7 Rate(bpm): 5 Volume(actual/calculated): 34.5/33.9 FCP(psi): 500 Pump used for disp: Halliburton Plug Bumped? X Yes No Bump press 2700 Casing Rotated? Yes X No Reciprocated? Yes X No %Returns during job 100 Cement returns to surface? X Yes _No Spacer returns? X Yes No Vol to Surf: 30 BBL V Cement In Place At: 15:45 Date: 9/26/2013 Estimated TOC: 579 Method Used To Determine TOC: Cement to surface,then circulated out of hole from 579' 1' Preflush(Spacer) Type: Density(ppg) Volume pumped(BBLs) Lead Slurry Type: Density(ppg) Volume pumped(BBLs) Mixing/Pumping Rate(bpm): Tail Slurry w Type: cD Density(ppg) Volume pumped(BBLs) Mixing/Pumping Rate(bpm): w Post Flush(Spacer) 0 z Type: Density(ppg) Rate(bpm): Volume: 0 w Displacement: u) Type: Density(ppg) Rate(bpm): Volume(actual/calculated): FCP(psi): Pump used for disp: Plug Bumped? Yes No Bump press Casing Rotated? Yes No Reciprocated? Yes No %Returns during job Cement returns to surface? Yes _No Spacer returns?_Yes No Vol to Surf: Cement In Place At: Date: Estimated TOC: Method Used To Determine TOC: CASING RUN IN TALLY III WELL NAME: Paxton 5 DATE: 09/26/13 CASING SIZE 4.500 inches WEIGHT 12.60 ppf CASING ID 3.980 inches GRADE L-80 THREAD DWC CAPACITY 0.0150 bbls/ft TORQUE - OPTIMUM = 6250 MIN= 5800 DISPLACEMENT 0.0046 bbls/ft SHOE DEPTH 2610.0 feet HOLE TD 2618.0 feet MUD WT 9.70 ppg Joint Running Joint Depth BOUY FACTOR 0.86 Joint# Joint# Length Total Bottom Top REMARKS Bouyant Capacity Displmt in Hole on Rack feet feet feet feet weight bbls bbls Off Bottom 8.00 Block Weight = 20,000 0.02 0.00 A shoe 1.50 1.50 2610.00 2608.50 WFD Ser#588934 20,016 0.0 0.0 1 1 41.56 43.06 2608.50 2566.94 Solid body Centralizer 20,467 0.7 0.2 B Flt Clr 1.46 44.52 2566.94 2565.48 WFD Ser#48110760 20,482 0.7 0.2 2 2 41.82 86.34 2565.48 2523.66 Solid body Centralizer 20,936 1.3 0.4 C Ld Clr 1.23 87.57 2523.66 2522.43 WFD #HNB 131113x 20,949 1.3 0.4 3 3 41.51 129.08 2522.43 2480.92 Solid body Centralizer 21,399 1.9 0.6 4 4 40.12 169.20 2480.92 2440.80 21,833 2.5 0.8 5 5 41.85 211.05 2440.80 2398.95 Centralizer 22,287 3.2 1.0 6 6 41.13 252.18 2398.95 2357.82 22,733 3.8 1.2 7 7 40.39 292.57 2357.82 2317.43 Centralizer 23,170 4.4 1.4 8 8 41.12 333.69 2317.43 2276.31 23,616 5.0 1.5 9 9 39.65 373.34 2276.31 2236.66 Centralizer 24,046 5.6 1.7 10 10 41.53 414.87 2236.66 2195.13 24,496 6.2 1.9 11 11 40.68 455.55 2195.13 2154.45 Centralizer 24,936 6.8 2.1 12 12 40.57 496.12 2154.45 2113.88 25,376 7.4 2.3 13 13 41.03 537.15 2113.88 2072.85 Centralizer 25,821 8.1 2.5 14 14 40.35 577.50 2072.85 2032.50 26,258 8.7 2.7 15 15 41.88 619.38 2032.50 1990.62 Centralizer 26,712 9.3 2.9 16 16 41.11 660.49 1990.62 1949.51 27,157 9.9 3.0 17 17 40.02 700.51 1949.51 1909.49 Centralizer 27,591 10.5 3.2 18 18 40.59 741.10 1909.49 1868.90 28,031 11.1 3.4 19 19 40.12 781.22 1868.90 1828.78 Centralizer 28,465 11.7 3.6 20 20 41.83 823.05 1828.78 1786.95 28,919 12.3 3.8 21 21 40.98 864.03 1786.95 1745.97 Centralizer 29,363 13.0 4.0 22 22 40.96 904.99 1745.97 1705.01 29,806 13.6 4.2 23 23 31.05 936.04 1705.01 1673.96 Centralizer 30,143 14.0 4.3 24 24 40.98 977.02 1673.96 1632.98 30,587 14.7 4.5 25 25 40.71 1017.73 1632.98 1592.27 Centralizer 31,028 15.3 4.7 26 26 41.15 1058.88 1592.27 1551.12 31,474 15.9 4.9 27 27 40.32 1099.20 1551.12 1510.80 Centralizer 31,911 16.5 5.1 28 28 38.87 1138.07 1510.80 1471.93 32,332 17.1 5.2 29 29 40.60 1178.67 1471.93 1431.33 Centralizer 32,772 17.7 5.4 30 30 41.49 1220.16 1431.33 1389.84 33,222 18.3 5.6 31 31 41.59 1261.75 1389.84 1348.25 Centralizer 33,672 18.9 5.8 32 32 41.09 1302.84 1348.25 1307.16 34,118 19.5 6.0 33 33 40.14 1342.98 1307.16 1267.02 Centralizer 34,553 20.1 6.2 34 34 41.47 1384.45 1267.02 1225.55 35,002 20.8 6.4 35 35 41.84 1426.29 1225.55 1183.71 Centralizer 35,455 21.4 6.6 36 36 41.81 1468.10 1183.71 1141.90 35,908 22.0 6.8 37 37 41.85 1509.95 1141.90 1100.05 Centralizer 36,362 22.6 7.0 38 38 41.39 1551.34 1100.05 1058.66 36,810 23.3 7.1 39 39 41.86 1593.20 1058.66 1016.80 Centralizer 37,264 23.9 7.3 40 40 31.50 1624.70 1016.80 985.30 37,605 24.4 7.5 41 41 41.84 1666.54 985.30 943.46 Centralizer 38,059 25.0 7.7 42 42 41.54 1708.08 943.46 901.92 38,509 25.6 7.9 43 43 40.39 1748.47 901.92 861.53 Centralizer 38,946 26.2 8.0 44 44 41.85 1790.32 861.53 819.68 39,400 26.9 8.2 45 45 41.80 1832.12 819.68 777.88 39,853 27.5 8.4 46 46 41.19 1873.31 777.88 736.69 40,299 28.1 8.6 47 47 41.87 1915.18 736.69 694.82 40,753 28.7 8.8 48 48 41.86 1957.04 694.82 652.96 41,206 29.4 9.0 49 49 40.03 1997.07 652.96 612.93 41,640 30.0 9.2 Hanger 33.67 2030.74 612.93 579.26 BAKER Baker OD 6.54 SN#zan466 XO 6.54 2037.28 579.26 572.72 BAKER PUP 6.16 2043.44 572.72 566.56 Paxton 5 Casing Tally Prod Liner casing tally 12/6/2013 11:22 AM Joint Rug Joint Depth BOUYAkCTOR 0.86 Joint# Joint# Length IMPf Bottom Top REMARKS ler Bouyant Capacity Displmt in Hole on Rack feet feet feet feet weight bbls bbls Slips at 623.97 Packer at 632.67 Collars at 651.85, 2043.44 566.56 566.56 610.92 18 JTS 552.65 2596.09 566.56 13.91 HWDP 1 JT 14.00 2610.09 13.91 -0.09 DP Paxton 5 Casing Tally Prod Liner casing tally 12/6/2013 11:22 AM k • CASING RUN IN TALLY II WELL NAME: Paxton 5 DATE: CASING SIZE 4.500 inches WEIGHT 12.60 ppf CASING ID 3.958 inches GRADE L-80 THREAD IBT CAPACITY 0.0152 bbls/ft TORQUE - OPTIMUM = 3000 MIN= 2440 DISPLACEMENT 0.0045 bbls/ft SHOE DEPTH 581.0 feet HOLE TD 2618.0 feet MUD WT 8.50 ppg Joint Running Joint Depth BOUY FACTOR 0.87 Joint# Joint# Length Total Bottom Top REMARKS Bouyant Capacity Displmt in Hole on Rack feet feet feet feet weight bbls bbls Off Bottom 581.00 Block Weight = 20,000 0.02 0.00 A seal assy 5.36 5.36 581.00 575.64 Above seal area 20,059 0.1 0.0 1 1 31.89 37.25 575.64 543.75 Seal area=9.72 20,408 0.6 0.2 2 2 31.89 69.14 543.75 511.86 20,758 1.1 0.3 3 3 31.29 100.43 511.86 480.57 21,101 1.5 0.5 4 4 31.73 132.16 480.57 448.84 21,449 2.0 0.6 5 5 31.24 163.40 448.84 417.60 21,791 2.5 0.7 6 6 31.18 194.58 417.60 386.42 22,133 3.0 0.9 7 7 31.88 226.46 386.42 354.54 22,482 3.5 1.0 8 8 30.66 257.12 354.54 323.88 22,819 3.9 1.2 9 9 31.77 288.89 323.88 292.11 23,167 4.4 1.3 10 10 31.72 320.61 292.11 260.39 23,515 4.9 1.4 11 11 31.80 352.41 260.39 228.59 23,863 5.4 1.6 12 12 31.97 384.38 228.59 196.62 24,214 5.9 1.7 13 13 31.02 415.40 196.62 165.60 24,554 6.3 1.9 SSSV 12.56 427.96 165.60 153.04 24,691 6.5 1.9 14 14 31.49 459.45 153.04 121.55 25,036 7.0 2.1 15 15 31.57 491.02 121.55 89.98 25,383 7.5 2.2 16 16 31.39 522.41 89.98 58.59 25,727 8.0 2.4 17 5.79 528.20 58.59 52.80 PUP 25,790 8.0 2.4 18 5.81 534.01 52.80 46.99 PUP 25,854 8.1 2.4 19 7.81 541.82 46.99 39.18 PUP 25,939 8.3 2.4 20 14.61 556.43 39.18 24.57 PUP 26,100 8.5 2.5 21 5.73 562.16 24.57 18.84 PUP/HANGER 26,162 8.6 2.5 0.00 562.16 18.84 18.84 .75=HANGER 26,162 8.6 2.5 19.00 581.16 18.84 -0.16 19' RKB 26,371 8.8 2.6 0.00 581.16 -0.16 -0.16 26,371 8.8 2.6 0.00 26,371 8.8 2.6 0.00 26,371 8.8 2.6 0.00 26,371 8.8 2.6 0.00 26,371 8.8 2.6 0.00 26,371 8.8 2.6 0.00 26,371 8.8 2.6 0.00 26,371 8.8 2.6 0.00 26,371 8.8 2.6 0.00 26,371 8.8 0.0 0.00 26,371 0.0 0.0 0.00 26,371 0.0 0.0 0.00 26,371 0.0 0.0 0.00 26,371 0.0 0.0 0.00 26,371 0.0 0.0 0.00 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26.371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 4.5"tieback casing tally 26,37112/6/2010 11:213.AM Joint Rupg Joint Depth BOUYAICTOR 0.87 Joint# Joint# Length 1W Bottom Top REMARKS Bouyant Capacity Displmt in Hole on Rack feet feet feet feet weight bbls bbls 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 26,371 0.0 0.0 75 75 0.00 0.00 0.00 26,371 0.0 0.0 76 76 0.00 0.00 0.00 26,371 0.0 0.0 77 77 0.00 0.00 0.00 26.371 0.0 0.0 78 78 0.00 0.00 0.00 26,371 0.0 0.0 79 79 0.00 0.00 0.00 26,371 0.0 0.0 80 80 0.00 0.00 0.00 26,371 0.0 0.0 81 81 0.00 0.00 0.00 26,371 0.0 0.0 82 82 0.00 0.00 0.00 26,371 0.0 0.0 83 83 0.00 0.00 0.00 26,371 0.0 0.0 84 84 0.00 0.00 0.00 26.371 0.0 0.0 85 85 0.00 0.00 0.00 26,371 0.0 0.0 86 86 0.00 0.00 0.00 26,371 0.0 0.0 87 87 0.00 0.00 0.00 26,371 0.0 0.0 88 88 0.00 0.00 0.00 26,371 0.0 0.0 89 89 0.00 0.00 0.00 26,371 0.0 0.0 90 90 0.00 0.00 0.00 26,371 0.0 0.0 91 91 0.00 0.00 0.00 26,371 0.0 0.0 92 92 0.00 0.00 0.00 26,371 0.0 0.0 93 93 0.00 0.00 0.00 26,371 0.0 0.0 94 94 0.00 0.00 0.00 26,371 0.0 0.0 95 95 0.00 0.00 0.00 26,371 0.0 0.0 96 96 0.00 0.00 0.00 26,371 0.0 0.0 97 97 0.00 0.00 0.00 26,371 0.0 0.0 98 98 0.00 0.00 0.00 26,371 0.0 0.0 99 99 0.00 0.00 0.00 26,371 0.0 0.0 100 100 0.00 0.00 0.00 26,371 0.0 0.0 101 101 0.00 0.00 0.00 26,371 0.0 0.0 102 102 0.00 0.00 0.00 26,371 0.0 0.0 103 103 0.00 0.00 0.00 26,371 0.0 0.0 104 104 0.00 0.00 0.00 26,371 0.0 0.0 105 105 0.00 0.00 0.00 26,371 0.0 0.0 106 106 0.00 0.00 0.00 26,371 0.0 0.0 107 107 0.00 0.00 0.00 26,371 0.0 0.0 108 108 0.00 0.00 0.00 26,371 0.0 0.0 109 109 0.00 0.00 0.00 26,371 0.0 0.0 110 110 0.00 0.00 0.00 26,371 0.0 0.0 111 111 0.00 0.00 0.00 26,371 0.0 0.0 112 112 0.00 0.00 0.00 26,371 0.0 0.0 113 113 0.00 0.00 0.00 26,371 0.0 0.0 114 114 0.00 0.00 0.00 26,371 0.0 0.0 115 115 0.00 0.00 0.00 26,371 0.0 0.0 116 116 0.00 0.00 0.00 26,371 0.0 0.0 117 117 0.00 0.00 0.00 26,371 0.0 0.0 118 118 0.00 0.00 0.00 26,371 0.0 0.0 119 119 0.00 0.00 0.00 26,371 0.0 0.0 120 120 0.00 0.00 0.00 26,371 0.0 0.0 4.12'lliebt.ckl2l casing tally 0.00 0.00 0.00 26,37112/6/2010 11:20.0,M Joint Ruilig Joint Depth BODY CTOR 0.87 , Joint# Joint# Length 1W Bottom Top REMARKS W Bouyant Capacity Displmt in Hole on Rack feet feet feet feet weight bbls bbls 122 122 0.00 0.00 0.00 26,371 0.0 0.0 123 123 0.00 0.00 0.00 26,371 0.0 0.0 124 124 0.00 0.00 0.00 26,371 0.0 0.0 125 125 0.00 0.00 0.00 26,371 0.0 0.0 126 126 0.00 0.00 0.00 26,371 0.0 0.0 127 127 0.00 0.00 0.00 26,371 0.0 0.0 128 128 0.00 0.00 0.00 26,371 0.0 0.0 129 129 0.00 0.00 0.00 26,371 0.0 0.0 130 130 0.00 0.00 0.00 26,371 0.0 0.0 131 131 0.00 0.00 0.00 26,371 0.0 0.0 132 132 0.00 0.00 0.00 26,371 0.0 0.0 133 133 0.00 0.00 0.00 26,371 0.0 0.0 134 134 0.00 0.00 0.00 26,371 0.0 0.0 135 135 0.00 0.00 0.00 26,371 0.0 0.0 136 136 0.00 0.00 0.00 26,371 0.0 0.0 137 137 0.00 0.00 0.00 26,371 0.0 0.0 138 138 0.00 0.00 0.00 26,371 0.0 0.0 139 139 0.00 0.00 0.00 26,371 0.0 0.0 140 140 0.00 0.00 0.00 26,371 0.0 0.0 141 141 0.00 0.00 0.00 26,371 0.0 0.0 142 142 0.00 0.00 0.00 26,371 0.0 0.0 143 143 0.00 0.00 0.00 26,371 0.0 0.0 144 144 0.00 0.00 0.00 26,371 0.0 0.0 145 145 0.00 0.00 0.00 26,371 0.0 0.0 146 146 0.00 0.00 0.00 26,371 0.0 0.0 147 147 0.00 0.00 0.00 26,371 0.0 0.0 148 148 0.00 0.00 0.00 26,371 0.0 0.0 149 149 0.00 0.00 0.00 26,371 0.0 0.0 150 150 0.00 0.00 0.00 26,371 0.0 0.0 4.5"tieback casing tally 12/6/2013 11:22 AM Landon Ellison Hilcorp Alaska, LLC 2"J�2 GeoTech 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Tele: 907 777-8339 Barter �l:e+kza,I,3.t: Fax: 907 777-8510 DATALOGGED P 12,/1`(/2013 E-mail: Jellison@hilcorp.com M K BENDER RECEIVED DATE 12/16/2013 DEC 1 7 2013 To: Alaska Oil & Gas Conservation Commission AOGCC Makana Bender Natural Resource Technician 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL Paxton #5 Mudlog data Prints: Formation Log MD 2"=100 Formation Log TVD 2"=100 LWD Combo Log MD 2"=100 LWD Combo Log ND 2"=100 Gas Ratio Log MD 2"=100 Gas Ratio Log TVD 2"=100 Drilling Dynamics MD 2"=100 Drilling Dynamics TVD 2"=100 Final Well Report.doc CD: Final Well Data DAILY REPORTS DML DATA FINAL WELL REPORT LAS FILE LOG PDF FILES LOG TIFF FILES SHOW REPORTS Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: Date: `11 (3 • • ?-1--b (Dio% Landon Ellison Hilcorp Alaska, LLC GeoTech II 3800 Centerpoint Drive, Suite 100 t.004 Anchorage, AK 99503 Tele: 907 777-8339w 12, 7.013 Hirt :tl,4a.LTA, Fax: 907 777-8510 NQS E-mail: Jellison@hilcorp.com o ixoGo DATE 10/23/2013 To: Alaska Oil & Gas onservation Commission _ \ Makana Bender - - : . ce Technician 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTA -2 0cr,\2k-00 Paxton #5 Cuttings: (3 boxes) 800'-1600' 1600'-2180' 2180'-2617' Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: Date: • Landon Ellison Hilcorp Alaska, LIP GeoTech II 3800 Centerpoint Drive, Suite 100 23c,(77 Anchorage, AK 99503 236rA Tele: 907 777-8339 ®c) Nils lIT,tLtAt,.I,kA; Fax: 907 777-8510 E-mail: lellison@hilcorp.com DATW�GGED .l\/w12013 .M K BENDER RECEIVED DATE 11/12/2013 NOV 1 1013 To: Alaska Oil & Gas Conservation Commission Makana Bender AO CC Natural Resource Technician 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTA Paxton #5 Elogs Prints: Cement Bond log Borehole Volume log Sonic Porosity (shallow section) Sonic Porosity (deep section) Dual Spaced Neutron Spectral Density Array Comp. Resistivity (shallow section) Dual Spaced Neutron Spectral Density Array Comp. Resistivity (deep section) Wavesonic Semblance Analysis (shallow section) Wavesonic semblance Analysis (deep section) RDT Pressure Transient Analysis CD: Final Well Data (3 i S G S) Quad Combo, Semblance run date 18-24-SEP-2013 RDT run date 24-SEP -2013 RCBL run date 12-OCT-2013 Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.83+74 (() Received By: ,� Date: • • Landon Ellison Hilcorp Alaska, LLC GeoTech II 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Tele: 907 777-8339 H.knrp Alioka.LTA Fax: 907 777-8510 E-mail: Jellison@hilcorp.com Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to'9'6 Received By: Date: z.\-6-075 Landon fEiiisorn 40i1corp Alaska, LLC GeoTech II 3800 Centerpoint Drive, Suite 100 23�D7 Anchorage, AK 99503 2:5 r GD Tele: 907 777-8339 015 2_3 6 0c) Wird.-1, c t,r3: Fax: 907 777-8510 E-mail: lellison@hilcorp.com D.AT/ZA_4000f2013ED \ M K BENDER DATE 11/12/2013 'i VED _L� NOV 1 2 2013 To: Alaska Oil & Gas Conservation Commission Makana Bender AOGCC Natural Resource Technician 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTA iPaxton #5 Elogs Prints: Cement Bond log Borehole Volume log Sonic Porosity (shallow section) Sonic Porosity (deep section) Dual Spaced Neutron Spectral Density Array Comp. Resistivity (shallow section) Dual Spaced Neutron Spectral Density Array Comp. Resistivity (deep section) Wavesonic Semblance Analysis (shallow section) Wavesonic semblance Analysis (deep section) RDT Pressure Transient Analysis CD: Final Well Data (3 Disc S) Quad Combo, Semblance run date 18-24-SEP-2013 RDT run date 24-SEP-2013 RCBL run date 12-OCT-2013 Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777:8-3-3-740V Received By: ,�? Date: • • � ��ole Landon Ellison Hilcorp Alaska, LLC .111 GeoTech II 3800 Centerpoint Drive, Suite 100 23�D7 Anchorage, AK 99503 2:56°15 Tele: 907 777-8339 2_360et ifilcorp 1JA: Fax: 907 777-8510 E-mail: Jellison@hilcorp.com DATA LOGGED . .\/ /2013 M K BENDER REVED DATE 11/12/2013 CEI NOV 122013 To: Alaska Oil & Gas Conservation Commission Makana Bender AOGCC Natural Resource Technician 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTA Paxton #5 Elogs Prints: Cement Bond log Borehole Volume log Sonic Porosity (shallow section) Sonic Porosity (deep section) Dual Spaced Neutron Spectral Density Array Comp. Resistivity (shallow section) Dual Spaced Neutron Spectral Density Array Comp. Resistivity (deep section) Wavesonic Semblance Analysis (shallow section) Wavesonic semblance Analysis (deep section) RDT Pressure Transient Analysis CD: Final Well Data (3 s s C s) Quad Combo, Semblance run date 18-24-SEP-2013 RDT run date 24-SEP -2013 RCBL run date 12-OCT-2013 Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.83-3 ` (0 Received By: Date: I V,12 13 V 91.*I jy��s THE STATE Alaska Oil and Gas 0fALA V � 1_� Conservation ® i ssi®n GOVERNOR SEAN PARNELL 333 West Seventh Avenue ALAS" Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 Mike Dunn Operations Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Re: Ninilchik Field, Undefined Sterling Pool, Paxton#5 Sundry Number: 313-576 Dear Mr. Dunn: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy P. F erster Chair, Commissioner DATED this day of November, 2013. Encl. RECEIVED • STATE OF ALASKA �j' NCIH :s ALASKA OIL AND GAS CONSERVATION COMMISSION \' APPLICATION FOR SUNDRY APPROVALS AOGGC 20 AAC 25.280 1.Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool Q - Repair Well❑ Change Approved Program ❑ Suspend❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdown❑ Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing ❑ Other. Complete 0- 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Hilcorp Alaska,LLC Exploratory Q , Development ❑ 213-075 ' 3.Address: Stratigraphic ❑ Service ❑ 6.API Number. 3800 Centerpoint Drive,Anchorage AK,99503 50-133-20614-00 , 7.If perforating: 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? CO 672 Will planned perforations require a spacing exception? Yes ❑ No Q ' Paxton#5 ' 9.Property Designation(Lease Number): 10.Field/Pool(s): Surface Agreement W/Parcel Fee Owner Ninilchik Field/Undefined Sterling Pool - 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 2,618 2,573 2,499 2,457 N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 77' 10-3/4" 77' 77' 5,210psi 2,480psi Surface 780' 7-58/" 780' 778' 6,890psi 4,790psi Intermediate Production 579' 4-1/2" 579' 578' 8,430psi 7,500psi Liner 2,031' 4-1/2" 2,610' 2,560' 8,430psi 7,500psi Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 4-1/2" 12.6#/L-80/IBT 2,610' Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): 7.63"Packer and Halliburton SSSV 639(MD)/638(TVD)and 153(MD)/153(TVD) 12.Attachments: Description Summary of Proposal Q 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic❑ Development II Service ❑ 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: Oil ❑ Gas 0 WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: N/A WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: N/A GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Mike Dunn Email mdunnahilcorp.com Printed Name ike unn Title Operations Engineer Signature Phone 907-777-8382 Date 11/4/2013 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3V3 — S1'(o Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ RBDMS NOV 15 O Other: f Few•K, /D~tiz.I "Op F6") Poi "" r r � . Spacing Exception Required? Yes ❑ No [J Subsequent Form Required: /v_t,/4 7 V / 7a, APPROVED BY ll— --1Approved by: COMMISSIONER THE COMMISSION Date: n,� ��f e l fq A 4/., �3 Submit Form and / �- Form 10-403(nevi ed 10/2012) Appro e 1 wdy i f 1 months from t date of pprova. Attachments in Duplicate `� • • Well Prognosis Well: KU 41-6 I-Iilcora Alaska.LI) Date:3/22/2013 Well Name: Paxton 5 API Number: 50-133-20614-00 Current Status: New Drill Completion Leg: N/A Estimated Start Date: Nov 11th, 2013 Rig: N/A Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Tom Fouts 777-8398 Permit to Drill Number: 213-075 First Call Engineer: Mike Dunn (907) 777-8382 (0) (907) 351-4191 (M) Second Call Engineer: Tom Fouts (907)777-8398 (907) 351-5749 Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Current Bottom Hole Pressure: —N/A Well not perforated Maximum Expected BHP: —910psi @ 2,133' TVD (Based on psi/ft water gradient of 0.45 ) Max. Allowable Surface Pressure: —870psi (Based on 0.0 psi/ft gas gradient) Brief Well Summary: This is a new well and completion. Justification: Wireline logs and pressure data indicate prospective gas reserves. Summary Procedure: Perforations 1. RU E-line and test lubricator to 250psi low/2,500psi high. 2. Run #1- RIH with GR/CCL, Gamma ray& perf guns and correlate on depth, perforate ±2,210'to ±2,215'. Fire guns. ELOH.All following runs to be executed in the same manner. 3. Run#2- Perforate±2,182'to±2,186'. 4. Run#3- Perforate±2,164'to ±2,174'. 5. Run#4- Perforate±2,150'to ±2,156'. 6. Run#5- Perforate±2,139'to±2,142'. 7. Run#6- Perforate±2,121'to±2,134'. 8. RD Eline. 9. Turn well over to production &flow test well. Contingency 1: 1. RU E-line and test lubricator to 250psi low/2,500psi high. 2. RIH with GR/CCL, Gamma ray& perf guns and correlate on depth, perforate ±1,896 to±1,938'. Fire guns. ELOH. 3. RD Eline. 4. Turn well over to production &flow test well. • • Well Prognosis Well: KU 41-6 I3ilcorp Alaska.LL Date: 3/22/2013 Contingency 2: 1. RU E-line and test lubricator to 250psi low/2,500psi high. 2. RIH with GR/CCL, Gamma ray& perf guns and correlate on depth, perforate ±1,838 to±1,855'. Fire guns. ELOH. 3. RD Eline. 4. Turn well over to production &flow test well. Attachments: 1. As-built Well Schematic 2. Proposed Well Schematic • • • Ninilchik Unit Well: Paxton 5 SCHEMATIC Last Completed: Future 'Mean)Alaska,LLC PTD: 213-075 CASING DETAIL RKB:MSL=19' Size Type Wt/Grade/Conn ID Top Btm 10" Conductor 45.5/L-80/Weld Surf 77' ° 7-5/8' Surface 29.7/1-80/Butt 6.875 Surf 780' " y 4-1/2" Liner 12.6/L-80/DWC/C 3.98 579' 2,610' TUBING DETAIL " i 44,7441 4-1/2" Tubing 12.6/L-80/IBT 3.98 Surface 579' ,,. 1 " JEWELRY DETAIL 10-3/4" li No Depth I.D. Item " 1 19' N/A Hanger `' 2 153' 3.813" Halliburton SSSV 3 639' N/A Packer° „.,- 4` o n OPEN HOLE/CEMENT DETAIL a ' , 7-5/8" Cmt w/54 sks in 9-7/8"Hole—Est.Top of Cement-Surface F , 4-1/2" Cmt w/84 sks in 6-3/4"Hole—Est.Top of Cement- 579' 1. „A - 4:v.'' kx r ! rt S 3'6 fit.. 7 5/8" I, " 6rr6� 1.), 3T r"p ' ,1 4 1, 5 +,, t 5' 1 5' , 1 i., 4 V2' TD=2,618'MD/2,573'TVD PDTD=2,499'MD/2,457'TVD Created By:TDF 10/28/2013 • • • Ninilchik Unit 14 Well: Paxton 5 PROPOSED Last Completed: Future Hilcorp Alaska,LLC PTD: 213-075 CASING DETAIL RKB:MSL=19 Size Type Wt/Grade/Conn ID Top Btm 10" Conductor 45.5/L-80/Weld Surf 77' -4:1 '1 4 e 7-5/8' Surface 29.7/L-80/Butt 6.875 Surf 780' W, ,4' "':::*,i1' 4-1/2" Liner 12.6/L-80/DWC/C 3.98 579' 2,610' 7,;, -,,p.-4:, TUBING DETAIL to X14 4-1/2" Tubing 12.6/L-80/IBT 3.98 Surface 579' JEWELRY DETAIL 10-3/4"./4, '- 411 fr kf 4.4' ,. No Depth I.D. Item *iiia 1 19' N/A Hanger 10 , ;f 2 153' 3.813" Halliburton SSSV 4 3 639' N/A Packer I ici l PERFORATION DETAIL 4,....,., 1 Sands Top(MD) Btm(MD) Top(TVD) Btm(TVD) FT Date Status 5» "Clic 1 2,121' 2,134' 2,086' 2,099' 13 Future Future 1Lti--E2,139' 2,142' 2,104' 2,107' 3 Future Future , Belu a 50 2,150' 2,156' 2,115' 2,121' 6 Future Future g 2,164' 2,174' 2,128' 2,138' 10 Future Future 2,182' 2,186' 2,146' 2,150' 4 Future Future lit; - 2,210' 2,215' 2,147' 2,179' 5 Future Future I � t `14 ' OPEN HOLE/CEMENT DETAIL � s m1+ 'r�+ 7-5/8" Cmt w/54 sks in 9-7/8"Hole-Est.Top of Cement-Surface "� ' 4-1/2" Cmt w/84 sks in 6-3/4"Hole-Est.Top of Cement- 579' k ' 1 F •849 756 75/s , ire St' V. ::: ); a Sp, i 4-122' TD=2,618'MD/2,573'TVD PDTD=2,499'MD/2,457'TVD Created By:TDF 10/1/2013 • • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date Paxton #5 50-133-20614-00-00 213-075 9/15/13 Daily Operations: Wednesday, September 18, 2013 Rig up Halliburton e-line Run quad combo logs as follows, Gamma telemetry, Dual spaced Neutron, Spectral Density, WaveSonic, Resistivity,tagged fill at 764' Rig down Halliburton e-line Pick up clean out BHA#2 and trip in hole,tagged fill at 760' Wash to bottom w/o rotating, circ bottoms up, 5% cuttings increase, pump hi vis sweep with small amount of cutting increase Trip out, unable to pull pipe without pumping, pump out to 350', having diffucult time moving pipe after shutting down pumps, decide to go back to bottom,tripped in to 778' (fill) without issue. Wash 15'to bottom, circ to clean hole. Trip out of hole having to pump out of hole from 793' to 180',turn elevators, C/O elevator inserts. PJSM. L/D BHA#2 Service rig, clear and clean rig floor. Load BHA off catwalk PJSM, R/U casing equipment. Pull 10" ID wear ring. Load casing back on pipe rack. Make casing hanger dummy run. 20.7 ft. L/D same. PJSM, p/u and run 7 5/8" L-80 29.7 ppf casing per tally and well program. Baker lock shoe track. M/U @ optimum torque of 7630 ft Ibis. Verify float collar holding. install 2 centralizers 10' f/ea. end on shoe jt, install 1 centralizer mid tube over stop collar above and below flt collar. every other joint past that to 300'. Fill pipe every joint. Install 9 centralizers total, run 18 jts 7 5/8" casing. M/U landing jt. P/U WT 45K. S/O WT 35K. RIH tagging at 773'. attempt to P/U, solid tag at 763'. S/0 to 771'. M/U cross over with FOSV. M/U topdrive, establish circ. wash to 778' @ 2'f/landing hanger Circulate 1.5 casing volumes pumping 206 gpm at 30 psi @ full returns. R/D weatherford tools. R/U cementers. load cementing head to rig floor. DSM witness loading plugs. Land hanger 20.7 ft in on landinging jt. L/D crossover and FOSV. M/U SLB cementing head. Thursday, September 19, 2013 M/U SLB cementing head and lines. Pump 5 bbl water, test lines to 4000 psi (held), rig pump 24 bbl 10 ppg mudpush II, drop bottom plug, start pumping 12 ppg cmt at 2 bpm, at 12 bbl away lost prime and or packoff lines (down for 1 hr.) resume pumping to 26 bbl.(out of lead), pump 28 bbl tail at 15.3 ppg at 3 bbl/min, pump 2.5 bbl at 13 ppg, drop top plug, displace with 9.5 ppg mud at 5 bbl/min for 25 bbl, slow down to 2 bbl/min to bump plug at 33 bbl (cal 32 bbl), press up to 1000 psi, final circ press (500 psi), hold for 5 min., bled back.5 bbl,floats held, cip @ 09:50 hr, did not get cmt or mudpush back to surface. Rig down SLB cementers. Lay down landing jt,flush out wellhead, make up packoff and set same, run in lock down and inject plastic packing,test to 3000 psi f/ 15 min. held Nipple down diverter system Rig up Pollard wireline and run temp log to find TOC. Rig down Pollard. TOC is at 120' Con't to nipple down diverter system. Clean up in cellar for welder. Set test plug over well. welder cut hole in 10 3/4" conductor for top job. W/O cementers. Cementers on location, PJSM, R/U cementers. Unable to get 1" pipe between 10 3/4"x 7 58" casing, use 3/4" hose running down to 33'. Batch cement @ 1:15. start pumping 15.8 ppg class G cmt at 01:30. Pump 6 bbls cement @ 1/4 bbl minute in 10 min intervals. 1.5 bbls back. 4.5 bbls in place. Cement @ top of conductor. CIP @ 03:40 Clean and flush lines. R/D cementers. PJSM. N/U 11" 5M BOPE. AOGCC inspector Jim Regg waived witness to BOP test. Friday, September 20, 2013 • • PJSM. N/U 11" 5M BOPE. Kill valves, kill line. HCR, 3" manual valve PJSM, Continue to N/U BOPE. M/U choke hose, line to gas buster, rotary drain pan.Torque all flanges. Anchor BOP. Install bell nipple,flowline. C/O bails on topdrive. Continue to install flowline. R/U accumulator lines. Function test rams. PJSM. M/U 4 1/2"test jt. R/U test equipment,fill stack and lines with fresh water. Gas buster full of old mud. cleanout same with vac truck. Open annulas valve and monitor. Pull check,Test BOPE. Pressure test annular to 250/2500 psi 5 min ea.Test upper VBR, kill valves, choke manifold valves, Lower IBOP, upper IBOP, full open safety valve, Dart valve to 250/3500 psi 5 min ea. Chart record all tests. AOGCC rep Jim Regg waived to witness test on 9-18-13 @ 9:46 am. Test witnessed by DSM. Saturday,September 21, 2013 Continue testing BOPE. perform choke bleed off test.Test HCR, manual choke, lower pipe, blind rams to 250/3500 psi f/ min. ea. Drawdown test accumulator good. Rams were tested w/4.5" pipe. HCR and manual choke F/P,grease both valves, re- tested ok.Total safety checked and calibrated gas alarms. Close annulas valve, pull test plug, set wear bushing Install bails and elevators, clear floor, prep to pick up BHA Pick up BHA as follows. XR+smith bit, motor,stab, pony, ubho sub, slimpulse, flow sub,2 nmdc,float sub, xo, 4 HWDP, xo,jars,xo RIH with HWDP to 693',tag float collar on depth. P/U to 688'. M/U top drive. Displace hole with new 9.7 ppg drilling mud, working pipe while pumping. Take old mud to cuttings box. PJSM. Space out HWDP center band under upper VBR. Close upper VBR. Circulate air out thru choke, shut in choke. Stage pressure up slowly to 3300 psi. Pipe moved up 5" moving string wt to 15k. Beed off pressure slowly thru choke. Verify no trapped pressure. Open upper VBR. Break off top drive,set 1 stand back. M/U top drive at floor level. space out hardband, Chain and secure Top drive. Close VBR. Pressure up slowly to 3423 psi. shut in at mud pump. Test 7 5/8" casing for 30 min. charted, bled off 31 psi, Bleed pressure off thru choke. Open upper VBR. Unchain top drive. Service draworks and top drive. M/U stand of HWDP. Drill out shoe track,float collar at 693', cement f/694'to 778',shoe to 780', cleanout old rathole to 793'. Pumping 229 gpm, 1030 psi. WOB 5-10k. 30 RPM 2.5K torque. Drill 20' new formation from 793 to 813' Circulate and condition mud for FIT. Obtain SPR#1 and#2 MP. POH to shoe @ 775', Conduct FIT for 12 ppg EMW. Close annular, circulate thru choke, shut choke in. Using test pump, pressure up on drill pipe to 96 psi pumping 1/8 bbl. No bleed off. chart 5 min. Bleed off pressure thru choke. Open annular, approx. 1/8 bbl returned at bleedback. Blowdown choke and gas buster. Drilling 6 3/4" hole from 813'to 950' Sunday, September 22,2013 Drilling 6 3/4" hole f/950'to 1590'. UP 60K,S/O 54K. Rot 56K. Off bttm torque 5K. Pumping 250 gpm at 1175 psi. WOB 10- 15K. Average ROP 65 FPH. Entered top of beluga formation at 1344' Continue drilling f/ 1590'to 1843. Pumping 250 gpm, 1310 psi. 80 RPM, 5.4K torque. WOB 11-15K. Diff 100 psi. Prep 4.5" liner. Continue drilling f/ 1843'to 2075, at 1840' keep ROP @ 50 FPH for sample catching until TD. Slide time 6.11 hrs. Rotate time 8.75 hrs. P/U 64K, S/O 57K, ROT 60K. Off bttm torque 5.25K @ 80 RPM. WOB 8-15K.Average ROP @ 50 FPH. Pumping 254 gpm at 1200 psi. Currently 1.5 ft high, 2.5' left of plan. Monday,September 23,2013 Drilling 6 3/4" hole f/2075'to 2436' up 75k, do 60k, rot 68k,tq 5k, pumping 250 gpm @ 1400 psi, rop 50'/hr. start having trouble to pickup string, bring lube up to 2%, no change Pump hi vis sweep,sweep back in calculated strokes, no increase in cuttings. Back ream to 1793', pump nut plug while backreaming. Continue back reaming from 1793'to 780'to 7 5/8"shoe. RIH on elevators f/780'to 2374', clean,wash last stand down,tag fill at 2415',wash and ream to bttm @ 2436'. Drilling f/ 2436'to TD @ 2618'. Pumping 250 gpm, 1360 psi. WOB 10-15K. 80 RPM. 40 FPH. P/U 75K. S/O 65K. ROT 70K. Off bttm torque 6500 @ 60 RPM. Pump 30 bbl HI VIS sweep around with 25 ppb nut plug. No increase in cuttings. Sweep back @ calculated strokes. Trip out on elevators for logs with Halliburton. Tuesday,September 24,2013 • • • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date Paxton #5 50-133-20614-00-00 213-075 9/11/13 Daily Operations: Wednesday, September 25, 2013 Continue logging with RDT f/700'to 800' POOH with logging equipment. Lay down logging tools, rig down Haliburton Service Rig Pick up clean out BHA as follows, re-run Smith XR+ bit, bit sub,stab, pony DC, 2-NMDC,float sub, XO,4- HWDP, jars,xo, 15- hwdp, XO Trip in F/705'-2555' Wash to 2618', 5'fill. Pump Hi Vis sweep W/nut plug. Small increase in cuttings. 1400 psi at 250 gpm. rotate and reciprocate Trip out of hole laying down DP. Flow check at shoe.(static) PJSM, L/D BHA#4. Clear and clean rig floor. PJSM. M/U cementing head on jt of drill pipe. Stand in derrick. R/U to run 4.5" liner. PJSM. P/U and run 4.5" DWC,12.6# L-80 liner per liner tally. Baker lock shoe track. Verify float is holding. RIH installing centralizer every other jt, 20 total. Use optimum torque @ 6000 ft lbs. Fill liner every jt. RIH to 741'. Circulate 1.5 liner volumes pumping 220 gpm 25 psi. P/U 27K. S/O 26K. continue P/U and run liner to 1997'. 49 JTS total. M/U 7.63" liner hanger/ packer assembly per Baker rep. Fill liner tie back sleeve with Pal mix. Wait 30 min f/ mixture to setup. Thursday, September 26, 2013 RIH w/ HWDP to 2596' Pick up cement head stand and wash to 2610', 6' of fill would not wash out. Circulate and condition mud while rigging up cement crew PJSM, mix mud push II Cement with SLB. Pump 5 bbl water, press test lines to 4700 psi, pump 30 bbl mud push II with rig, pump 84 bbl 12.5 ppg cement at 3.5 bbl/min 2350 psi, drop plug, displace 24 bbl with 9.7 ppg at 5 bpm slow down to 2 bpm, bump plug with 34.5 bbl (calculated 33.9 bbl),final circ press 500 psi, press up to 2700 psi to set slips. cement to surface with 29 bbl displacement. String wt 48k, slack off to 25k to verify slips set, press up to 3800 psi to set packer, press up to 4200 psi to release running tool, pick up 2'to confirm. Closed annular and test annulus to 1500 psi for 10 min.(held). Press up to 500 psi and pick up to remove RS packoff bushing. Press did not drop until entire seal assy and stinger pull out of PBR,circ cement out of hole. Ran seal assy back in,visualy saw seals enter PBR, press up to 500 psi and picked up, no press loss until seal assy and entire stinger pulled free, CBU. CIP @ 1545 hrs. Rig down SLB,flush lines clear of cement. PJSM. L/D cementing head from derrick. L/D 18 JTS HWDP. L/D Baker liner running tool. M/U Stand DP with jetting tool.Jet BOP due to cement returns,function both pipe rams and annular. L/D jetting tools. Function blind rams. Attempt to flush choke manifold. Pull bonnet from valves, packed off with gravel, clear gravel from valves 2 & 3, reinstall bonnets. PJSM. R/U Priority wireline unit. M/U CBL tools with lubricator. Close annular, pressure to 350 psi. RIH. Log from 42'to 575' Make 2nd logging run from 37'to 575'with 800 psi on wellbore. R/D loggers. Load 2 7/8"tools and equipment to rig floor. Load 2 7/8" drill collars and tubing onto pipe rack,SLM same. R/U floor equip for 2 7/8" BHA. Pressure test choke valves 1 & 2 to 250/3500 psi 5 min. Chart record test. Friday,September 27, 2013 See completion summary. Saturday, September 28, 2013 See completion summary. Sunday,September 29, 2013 See completion summary. Monday, September 30,2013 See completion summary. Tuesday, October 01, 2013 • • See completion summary. • • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date Paxton 5 50-133-20614-00 213-075 9/11/13 Daily Operations: 9/25/2013-Wednesday See drilling report. 9/26/2013 -Thursday See drilling report. 9/27/2013 - Friday Strap and rack 2-7/8" tubing string. Pick up and RIH with 2-7/8"scraper assy. Run in hole to 1,980'. Rig down Weatherford equipment. Con't to run with 4-1/2" DP from derrick to 2,477'. Break circulating, wash cement containinated mud to surface. Wash and ream from 2,477'to 2,499' with pressure spikes at 2,499'. Pressure up without dropping off, kick out pump and work pipe, pressure dropped to 0 psi. Con't to circulate and wash to bottom and con't to pressure up. Pressure follows us up hole while picking up. Kick out pump and press drops off. PJSM for testing 7-5/8" x 4-1/2" casing. Set 1 std back. Space tool joint at rig floor. M/U top drive, close upper VBR. Anchor bails with 2 chains. R/U and Circulate air from choke thru gas buster. Shut in choke. Pressure up on casing to 3,500 psi. Found drilling line on draworks drum crossed. Set pipe in slips, hang blocks. Re-spool drilling line on drum. Test all eqipment. Complete and submit S-01 form. Decision made to test casing without string using blind rams. M/U stand from derrick. Break circulation,tag at 2,499'. Pump 25 bbl sweep. Displace hole with fresh water pumping 86gpm at 270psi, dump sweep returns. Make 2 circulations with clean water. POH from 2,499', 9 stds 4-1/2" DP, bringing 7-5/8" scraper and brush assembly to surface. Inspect assembly. RIH to 2,499'. Circulate and continue to clean casing. Circulate flushing out choke line. With clean fluid all the way around, pump 24 bbl chemical train per MI,followed with filtered 6% KCL, circulate until fluid has cleaned up. POH from 2,499', rack 9 stds 4-1/2" DP in derrick. L/D scraper, brush assy. R/U WFD 2-7/8" handling tools. POH, L/D 2-7/8"work string. 9/28/2013-Saturday Strap and rack 2-7/8" tubing string. Pick up and RIH with 2-7/8" scraper assy. Run in hole to 1,980'. Rig down Weatherford equipment. Con't to run with 4-1/2" DP from derrick to 2,477'. Break circulating,wash cement containinated mud to surface. Wash and ream from 2,477'to 2,499'with pressure spikes at 2,499'. Pressure up without dropping off, kick out pump and work pipe, pressure dropped to 0 psi. Con't to circulate and wash to bottom and con't to pressure up. Pressure follows us up hole while picking up. Kick out pump and press drops off. PJSM for testing 7-5/8"x 4-1/2" casing. Set 1 std back. Space tool joint at rig floor. M/U top drive, close upper VBR. Anchor bails with 2 chains. R/U and Circulate air from choke thru gas buster. Shut in choke. Pressure up on casing to 3,500 psi. Found drilling line on draworks drum crossed. Set pipe in slips, hang blocks. Re-spool drilling line on drum. Test all eqipment. Complete and submit S-01 form. Decision made to test casing without string using blind rams. M/U stand from derrick. Break circulation,tag at 2,499'. Pump 25 bbl sweep. Displace hole with fresh water pumping 86gpm at 270psi, dump sweep returns. Make 2 circulations with clean water. POH from 2,499', 9 stds 4-1/2" DP, bringing 7-5/8" scraper and brush assembly to surface. Inspect assembly. RIH to 2,499'. Circulate and continue to clean casing. Circulate flushing out choke line. With clean fluid all the way around, pump 24 bbl chemical train per MI,followed with filtered 6% KCL, circulate until fluid has cleaned up. POH from 2,499', rack 9 stds 4-1/2" DP in derrick. L/D scraper, brush assy. R/U WFD 2-7/8" handling tools. POH, L/D 2-7/8"work string. 9/29/2013-Sunday Continue to lay down 2-7/8" TBG. No abnormal wear on milling assy. Rig up and test production liner to 3,500psi for 30 min, lost 75 psi, charted. Rig down testing equipment. Rig service, inspect crown sheeves, derrick,traveling blocks. Pick up polish mill assy,trip in on 4-1/2" DP TO 579'. Polish PBR, pump at 165gpm, rotate at 40 rpm for first entry, rotate at 60 rmp for 2nd and third entry. Torque at 4.5K. Set down with 3K on top of ZXP hanger to remove any burs on hanger, increase in torque to 5.5 K. Displace annulus with inhibited packer fluid. POOH laying down DP, L/D polish mill assembly. R/U and pull short wear bushing. Load 4.5"tieback string onto pipe rack. Strap and tally same. R/U weatherford handling equipment. Prep FOSV w/ crossover to 4-1/2" IBT. PJSM. M/U 4.5"tie back assembly per baker rep. remove plastic wrap. Inspect for damage. P/U, drift and RIH with 13 jts 4.5" IBT, L80, 12.6ppf production tubing to 415'. M/U SSSV positioning valve for 151'. M/U SSSV control line. Attempt to pressure Test control line. Will not hold pressure. Break out SSSV. W/O Pollard wire line. Pollard WL on location @ 01:00, install dummy valve in SSSV. M/U SSSV and control line, Pressure test to 5,000 psi for 15 min. Continue RIH from 415'to 553'. Install landing jt. P/U 27K, 5/0 25K. Circulate .25 BPM. Sting into tieback sleeve per Baker rep, shut down pump,tag @ 579'. Pressure up to 500 psi to verify tieback sleeve holding. Unsting. POH and L/D 2 jts. Spaceout with 4 pup jts. M/U 4.5" X 11"TBG hanger with pup jt per cameron rep. M/U control line. 7 ss bands in place. 9/30/2013- Monday Spaceout 4.5"tieback completion. Land hanger. Tbg tail stung into tieback sleeve with 5k down. Tail @ 579'. Top of SSSV @ 151.04', Cameron rep RILDS. 19' RKB. Up wt. 45K do wt. 27k. Rig up to test liner,test production bore to 1,500 psi for 30 min. Lost 25 psi,tie into 4-1/2" X 7-5/8" annular and test to 1,500 psi for 30 min. Lost 25psi, chart both. Set 2 way check, nipple down BOP. Continue to N/D BOPE. Install lifting plate on BOP. Inspect upper VBR. Start R/D equipment. Gas buster, pits. Load out BOPE from cellar. N/U 11" seaboard adaptor flange ser#H294425 and 4-1/16" cameron tree. Cameron rep test void to 3,000psi for 10 min. Test tree to 5,000psi for 5 min. Remove TWC. RDMO. R.D floor equipment,top drive, pits, ect . Rig released at 06:00 hrs. 10/1/2013 -Tuesday No operations to report. • • Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Tuesday, September 24, 2013 9:05 AM To: 'Paul Mazzolini' Cc: 'Davies, Stephen F (DOA) (steve.davies@alaska.gov)' Subject: RE: Request for Revised TD for Paxton 5 ( PTD 213-075) Paul, You have approval to deepen well by 282' to a TD of 2700' and without a sundry revision per 20 AAC 25.015(a) . This assumes there would be no need for spacing exemption since the well is nearly vertical. Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Paul Mazzolini [mailto:pmazzolini@hilcort.cf ] Sent: Monday, September 23, 2013 1:57 PM To: Schwartz, Guy L(DOA) Cc: Zane Montague - (C); Doug Yessak- (C); )anise Barrett; Luke Keller Subject: Request for Revised TD for Paxton 5 Guy, Thank you for your time this morning to discuss the revised TD for Paxton#5. This email is to confirm Hilcorp's request to deepen the TD to 2700'MD(+282'MD from the present permit TD of 2418'MD) based upon actual mud log and open hole log information from the surface hole. The new TD will allow logging of the Beluga 50 A, B and C sands to look for additional gas zones. Cement volume calculations will be adjusted to account for the additional annular volume upon decision to complete the well. Please contact me at 777-8369 with any questions. Regards Paul 1 P7-6 z 13o-i-6, Regg, James B (DOA) From: Regg, James B (DOA) -7 Sent: Friday, September 20, 2013 10:02 AM \meq '- t 3 To: 'Zane Montague - (C)' Cc: Paul Mazzolini Subject: RE: AOGCC Test Witness Notification Request: BOPE, Saxon 147, Paxton#5, Ninilchik, Alaska Attachments: Industry Guidance 13-001.pdf ✓ Guidance Bulletin 13-01 addresses requirements for top job. Jim Regg AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 From: Zane Montague - (C) [mailto:zmontague@hilcorp.com] Sent: Friday, September 20, 2013 12:16 AM To: Regg, James B (DOA) Cc: Paul Mazzolini Subject: RE: AOGCC Test Witness Notification Request: BOPE, Saxon 147, Paxton 5, Ninilchik, Alaska James: We did not get cement to surface on our 7 5/8" casing, we are preparing •r a top cement job which will set us back 15- 24 hr. before we test BOP. Zane A Montague Drilling Forman Hilcorp Alaska zmontague@hilcorp.com 907-283-1365 From: Regg, James B (DOA) [ .ilto:•im.re•• • alaska.•ov] Sent: Wednesday, Septembe 18, 2013 9:46 AM To: Zane Montague - (C) Subject: RE: AOGCC T-: Witness Notification Request: BOPE, Saxon 147, Paxton # 5, Ninilchik, Alaska AOGCC witness is ,aived Jim Regg AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 1 ''of 7,� THE STATE Alaska Oil and Gas �:� __---� °ALAS .. Conservation Commission 1 _ GOVERNOR SEAN PARNELL 333 West Seventh Avenue ALAS Anchora e, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 April 9,2013 AOGCC Industry Guidance Bulletin 13-001 Remedial Cementing (aka"Top Job") for Surface Casing Alaska Oil and Gas Conservation Commission (AOGCC) regulations governing cementing are found at 20 AAC 25.030. Paragraph (d)(4) requires the annular space of surface casing (conductor-surface casing annulus) to be filled with cement from the casing shoe to the surface. An inadequate primary cement job is evidenced by cement not circulated to surface, an excessive quantity of cement circulated to surface, or results of a formation integrity test that indicate insufficient integrity of the casing shoe. Regulation 20 AAC 25.030(d)(4) continues with required actions if an inadequate surface casing cement job occurs. The operator shall: • notify AOGCC before drilling ahead,AND • evaluate adequacy as described (cement quality log or other AOGCC approved method), AND • take remedial action as necessary to meet the design requirements of a well casing and cementing program as outlined in 20 AAC 25.030(a). The following clarification is provided to address actions that are to be taken in response to inadequate surface casing cementing: • Contact AOGCC as soon as become aware of inadequate cementing using notification procedures outlined in AOGCC Industry Guidance Bulletin 10-01A; • Prepare a plan for remedial cementing and submit to AOGCC for review and approval (email submittal is acceptable); an Application for Sundry Approvals(Form 10-403) is required; o Include details about primary cement job—volume pumped; any diagnostics prior to cement job to confirm hole size/volume cement needed(e.g.,tracer); problems during cement job; is gas bubbling/flowing?; etc. • Notify AOGCC Inspectors for an opportunity to witness the procedure that will be used to determine top of primary cement in the conductor-surface casing annulus; • Run small diameter pipe or other conduit to top of cement and pump "top job" per approved procedure; • If cannot definitively identify the primary cement top, notify AOGCC before pumping cement and discuss options; Please share this Guidance•Bulletin with all appropriate members of your organizations. Questions regarding this guidance should be directed to James Regg at(907) 793-1236. Sincerely, iie.i.-4--, Cat y P. oer ter Chair, ommissioner • • 'Regg, James B (DOA) From: Zane Montague-(C) [zmontague@hilcorp.com] Sent: Friday, September 20, 2013 6:39 AM To: Brooks, Phoebe L (DOA); DOA AOGCC Prudhoe Bay; Regg, James B (DOA) Cc: Paul Mazzolini; Luke Keller; Doug Yessak- (C); Bob Farrell -(C) Subject: Paxton#5 BOP test To All; Top of cement for 7 5/8" surface was at 120' per temperature log. A top job was made pumping 6 bbl cement getting 1.5 bbl back bringing cement to surface. Nipple up BOP at this time. Zane A Montague Drilling Forman Hilcorp Alaska zmontague@hilcorp.com 907-283-1365 1 i Regg, James B (DOA) From: Zane Montague- (C) [zmontague@hilcorp.com] Sent: Friday, September 20, 2013 12:16 AM To: Regg, James B (DOA) Cc: Paul Mazzolini Subject: RE: AOGCC Test Witness Notification Request: BOPE, Saxon 147, Paxton#5, Ninilchik, Alaska James: We did not get cement to surface on our 7 5/8" casing,we are preparing for a top cement job which will set us back 15- 24 hr. before we test BOP. Zane A Montague Drilling Forman Hilcorp Alaska zmontague@hilcorp.com 907-283-1365 From: Regg, James B (DOA) [mailto:jim.regg@alaska.gov] Sent: Wednesday, September 18, 2013 9:46 AM To: Zane Montague - (C) Subject: RE: AOGCC Test Witness Notification Request: BOPE, Saxon 147, Paxton # 5, Ninilchik, Alaska AOGCC witness is waived Jim Regg AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 From: Zane Montague [mailto:noreply©jotform.com] Sent: Wednesday, September 18, 2013 7:18 AM To: DOA AOGCC Prudhoe Bay Subject: AOGCC Test Witness Notification Request: BOPE, Saxon 147, Paxton # 5, Ninilchik, Alaska Question Answer Type of Test Requested: BOPE Requested Time for 09-20-2013 5:00 AM Inspection 1 • • Location Saxon 147, Paxton# 5,Ninilchik, Alaska Name Zane Montague E-mail zmontague(a�hilcorp.com Phone Number (907) 283-1365 Company Hilcorp Other Information: Please inform me if AOGCC Inspector will witness test so I can keep your inspector updated as we progress. Submission ID: 245326657242310520 2 OF Tit • w��\\I/7 s.A THE STATE Alaska Oil and Gas °'ALASKA Conservation Commission 41, 2 - GOVERNOR SEAN PARNELL 333 West Seventh Avenue rh ALAS Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 Luke Keller Drilling Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Re: Ninilchik Field, Sterling Undefined Gas Pool, Paxton#5 Hilcorp Alaska, LLC Permit No: 213-075 (REVISED) Surface Location: 2990' FEL, 801' FNL, Sec. 13, T1S, R14W, SM Bottomhole Location: 336' FNL, 2274' FWL, SEC. 13, T1S, R14W, SM Dear Mr. Keller: Enclosed is the approved application for permit to drill the above referenced exploration well. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to produce / inject is contingent upon issuance of a conservation order approving a spacing exception. Hilcorp Alaska, LLC assumes the liability of any protest to the spacing exception that may occur. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to test, produce or inject is contingent upon issuance of a conservation order approving a spacing exception. Hilcorp Alaska, LLC assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the AOGCC 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. Regulation 20 AAC 25.071(a) authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by Hilcorp Alaska, LLC in the attached application, the following well logs are also required for this well: 1. Mudlog from base of conductor to T.D. 2. Cased hole gamma ray log from base conductor to 7-5/8" casing shoe. 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 AOGCC 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 AOGCC's internal use. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC 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 AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Cathy P. oerster Chair DATED this—) day of September, 2013. r KC`,rCI V GV STATE OF ALASKA AUG 2 7 2013 AL OIL AND GAS CONSERVATION COMMIWN PERMIT TO DRILL AOGCC 20 AAC 25.005 Re vI 5ea la.Type of Work: 1 b. Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone Q 1 c.Specify if well is proposed for: Drill Q - Lateral ❑ Stratigraphic Test ❑ Development-Gas❑ Service-Supply ❑ Multiple Zone ❑ Coalbed Gas ❑ Gas Hydrates ❑ Redrill❑ Reentry ❑ Exploratory Q ' Service- WAG ❑ Service-Disp ❑ Geothermal ❑ Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket ❑ Single Well ❑ 11.Well Name and Number: Hilcorp Alaska,LLC Bond No. 022035244 - Paxton#5 3.Address: 6.Proposed Depth: 12. Field/Pool(s): 3800 Centerpoint Drive,Suite 100,Anchorage,AK,99503 MD: 2,417.8' TVD: 2,371.29'- Undefined 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): New Pool-Sterling Reservoir . Surface: 2990'FEL,801'FNL,Sec 13,T1S,R14W,SM,AK ' Fee Lease(Ninilchik Unit) Top of Productive Horizon: 8. Land Use Permit: 13.Approximate Spud Date: 681'FNL,2284'FWL,Sec 13,T1S, R14W,SM,AK ' Surface Agreement w/parcel fee owner 8/31/2013 • Total Depth: / 9.Acres in Property: 14. Distance to Nearest Property: 336'FNL,2274'FWL,Sec 13,T1S, R14W,SM,AK 33.2 acres 372.5 FEL 4b. Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL: 166 feet 15. Distance to Nearest Well Open Surface: x-206337.60 y-2230561.45 Zone-4 GL Elevation above MSL: 148 feet to Same Pool: N/A 16. Deviated wells: Kickoff depth: 500 feet 17.Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: 15.71 degrees . Downhole: 885 psig . (Surface: 626 psig 18.Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity,c.f.or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Conductor 10-3/4" 45.5 L-80 Weld 80 0 0 80 80 Drld into place 9-7/8" 7-5/8" 29.7# L-80 BTC 800 0 0 800 799 76 sx 12ppg lead/110 sx 15.4ppg tail 6-3/4" 4-1/2" 12.6# L-80 DWC/C HT 1810 600 599 2409 2371 270 sx 12.5 ppg LiteCRETE 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugs(measured): Effect.Depth MD(ft): Effect.Depth TVD(ft): Junk(measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): 20. Attachments: Property Plat ❑ BOP Sketch ❑✓ Drilling Program Q Time v.Depth Plot Q Shallow Hazard Analysis Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program Q 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Email Printed Name Luke Keller '//1 Title Drilling Engineer Signature 1/... /2(1-- Phone (907)777-8395 Date 8/26/2013 Commission Use Only Permit to Drill API Number: Permit Approval ' See cover letter for other Number: 213-075 50- 133-20614-00-00 Date: requirements. Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coalbed rrnetharie,gas hydrates,or gas contained in shales: Other: 5 500 ,75,- W f 'f Samples req'd: Yes❑I No❑ Mud log req'd:Yes Q No❑ * Zapt) !r s` h� � '�S ,-- H2S measures: Yes ❑ No Directional svy req'd:Yes No Spacing exception req'd:_ Yes© No[11 Inclination-only svy req'd:Yes❑ No W rX� re-* Mw� moa ova s -7-:-.5 .(-- C s"- Ar1014ou 1:7e - �,r-, APPROVED BY Approved by: Cj'eCOMMISSIONER THE COMMISSION Date:q -T , 1 3 A ' -✓ 13 Submit Form and r (4, Form 10-401(Revised 10/2012) This per it sRil f94l1hAo�'r the dat of approval(20 AAC 25.005(g)) Attachments in Duplicate :1/4,, 4-7-3- • RECEIVED AUG 2 7 2013 HilcorpLuke Keller Hilcorp Alaska, LLC ®�� Energy Compny Drilling Engineer P.O. Box 244027 Anchorage, AK 99524-4027 Tel 907 777 8395 8/26/2013 Email Ikeller@hilcorp.com Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue Anchorage, Alaska 99501 Re: Paxton#5 PTD: 213-075 API: 50-133-20614-00-00 Dear Commissioner, Enclosed for review and approval is a change to APD for the Paxton#5 Exploration oil well. The following changes have been made to the program and are listed below: The surface location has moved approximately 33 Feet Southeast of the original location specified in the APD but keeping the same targets. Drilling operations are expected to commence approximately August 31st, 2013. If you have any questions, please don't hesitate to contact myself at 777-8395 or Paul Mazzolini at 777-8369. Sincerely, L ,�j �� l,Js✓r� Y't - Luke Keller � � Drilling Engineer Hilcorp Alaska, LLC Page 1 of 1 • • 1111 Hilcorp Alaska, LLC Paxton #5 Drilling & Completion Program Ninilchik, AK Revision 1 August 22, 2013 • 411 Paxton #5 Hilcorp Drilling Procedure Energy Company Contents 1.0 Well Summary 2 2.0 Management of Change Information 3 3.0 Tubular Program: 4 4.0 Drill Pipe Information: 4 5.0 Internal Reporting Requirements 5 6.0 Planned Wellbore Schematic 6 7.0 Drilling/Completion Summary 7 8.0 Mandatory Regulatory Compliance/Notifications 8 9.0 R/U and Preparatory Work 10 10.0 N/U 11"Diverter System 11 11.0 Drill 9-7/8"Hole Section 13 12.0 Run 7-5/8"Surface Casing 16 13.0 Cement 7-5/8"Surface Casing 19 14.0 BOP N/U and Test 22 15.0 Drill 6-3/4"Hole Section 23 16.0 Run 4-1/2"Production Liner 26 17.0 Cement 4-1/2"Production Liner 29 18.0 Wellbore Clean Up&Displacement 33 19.0 Run 4-1/2"Tieback String 33 20.0 Install Production Tree 35 21.0 BOP Schematic 36 22.0 Wellhead Schematic 37 23.0 Days Vs Depth 38 24.0 Geo-Prog 39 25.0 Anticipated Drilling Hazards 40 26.0 Rig Layout 42 27.0 FIT Procedure 43 28.0 Saxon Rig 147 Choke Manifold Schematic 44 29.0 Casing Design Information 45 30.0 6-3/4"Hole Section MASP 46 31.0 Directional Program(P3) 47 32.0 Directional Plan View(P3) 48 33.0 Spider Plot Plan View(P3) 49 34.0 Anti-Collision Summary Report 50 35.0 Spider Plot(NAD 27)(Governmental Sections) 52 36.0 Spider Plot(NAD 83)(Governmental Sections) 53 37.0 Surface Plat(As Built)(NAD 27) 54 38.0 Surface Plat(As Built)(NAD 83) 55 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 1.0 Well Summary Well Paxton#5 • Pad Paxton Planned Completion Type 4-1/2"IBT production tubing • Target Reservoir(s) Sterling A,Beluga • Planned Well TD,MD/TVD 2,417.8' MD/2,371.29' TVD • PBTD,MD/TVD 2,300' MD/2,255' TVD Surface Location(Governmental) 2990' FEL, 801' FNL, Sec 13, T1S, R14W, SM,AK Surface Location (NAD 27 ASP Zone 4) X=206337.60,Y=2230561.45 Surface Location(NAD 83) X= 1346357.07,Y=2230320.3 Top of Productive Horizon (Governmental) 681'FNL,2284'FWL, Sec 13, T1S, R14W, SM, AK TPH Location(NAD 27) X=206334.14,Y=2230592.63 TPH Location(NAD 83) X= 1346353.61,Y=2230351.52 BHL(Governmental) 336'FNL,2274'FWL, Sec 13, T1S,R14W, SM,AK BHL(NAD 27) X=206332.8,Y=2230937.09 BHL(NAD 83) X= 1346352.25,Y=2230695.99 AFE Number 1311564 AFE Drilling Days 23 days AFE Completion Days 5 days AFE Drilling Amount $3.81 MM AFE Completion Amount $1.05 MM Work String 4-1/2" S-135 16.6#CDS 40(Rental f/Saxon) RKB—GL 18' Ground Elevation 148 AMSL(Geo-Prog) BOP Equipment 11" 5M T3-Energy(Model 7082) 11" 5M T3-Energy Double Ram(Model 6011i) 11"5M T3-Energy Single Ram(Model 6011i) Page 2 Revision 0 May,2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 2.0 Management of Change Information Hilcorp Alaska, LLC Hilcorp Larva Company Changes to Approved Permit to Drill Date: Feb 28, 2013 Subject: Changes to Approved Permit to Drill for Paxton #5 File #: Paxton #5 Drilling and Completion Program Any modifications to Paxton#5 Drilling& Completion Program will be documented and approved below Changes to an approved APD will be communicated to the AOGCC &BLM. Section Page Date Procedure Change Approved Approved By By Approval Drilling Manager Date Prepared Drilling Engineer Date Page 3 Revision 0 May, 2013 • • Paxton#5 Drilling & Completion Procedure Hilcorp Energy Company 3.0 Tubular Program: Hole OD (in) ID (in) Drift Conn Wt Grade Conn Burst Collapse Tension Section (in) D (in) (#/ft) (psi) (psi) (k-lbs) Cond 10-3/4" 9.95" 9.875" 11.75" 45.5 L-80 BTC 5210 2480 1040 9-7/8" 7-5/8" 6.875" 6.75" 8.5" 29.7 L-80 BTC 6890 4790 683 6-3/4" 4-1/2" 3.918 3.833 4.729 12.6 L-80 DWC HT 8430 7500 192 4.0 Drill Pipe Information: Hole OD (in) ID (in) TJ ID TJ OD Wt Grade Conn Burst Collapse Tension Section (in) (in) (#/ft) (psi) (psi) (k-lbs) All 4.5 3.826 2.6875 5.25 16.6 S-135 CDS40 16,176 10,959 468 All casing will be new, PSL 1 (100%mill inspected, 10% inspection upon delivery to TSA in Fairbanks). Page 4 Revision 0 May, 2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 5.0 Internal Reporting Requirements 5.1 Fill out daily drilling report and cost report on Wellez. i. Report covers operations from 6am to 6am ii. Click on one of the tabs at the top to save data entered. If you click on one of the tabs to the left of the data entry area—this will not save the data entered, and will navigate to another data entry tab. iii. Ensure time entry adds up to 24 hours total. iv. Try to capture any out of scope work as NPT. This helps later on when we pull end of well reports. 5.2 Afternoon Updates i. Submit a short operations update each work day to pazzolini@hilcorp.com, lkeller@hilcorp.com and jbarrett@hilcorp.com 5.3 5am Weekend Update i. Submit a short operations update each weekend and holiday to whoever is assigned weekend or vacation duty. ii. Copy pazzolini@hilcorp.com, lkeller@hilcorp.com andjbarrett@hilcorp.com 5.4 EHS Incident Reporting i. Notify EHS field coordinator. 1. Mark Tornai: 0: 907-748-3299 C: 907-283-1372 2. Spills: Kate Kaufman: 0:907-777-8329 C:907-244-8292 ii. Notify Drlg Manager 1. Paul Mazzolini: 0: 907-777-8369 C: 907-317-1275 iii. Submit Hilcorp Incident report to contacts above within 24 hrs 5.5 Casing Tally i. Send final"As-Run"Casing tally to lkeller@hilcorp.com and jbarrett@hilcorp.com 5.6 Casing and Cmt report i. Send casing and cement report for each string of casing to lkeller@hilcorp.com and jbarrett@hilcorp.com 5.7 Switch to"Completion"report when production liner starts in the hole. Page 5 Revision 0 May, 2013 • • II Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 6.0 Planned Wellbore Schematic .. , Planned• .-. = : - , & Tubing Type . •, Z'z:- Conn 2 Ce:rrCi4ciz• -:: E.- !: -Dart ....5 5 --!: %%el.:, :1-... .:...3 3.,..4 1 I Set DeaV" 7-5'18 ., E.te.,,,, f E-5 Su4:" ' ; - -.:.: ) 4-"2 Pre . -: ---- * ' .{ 4- t2 I Pr z,:..n."- I ::t" I ...q.c. I Iv I !3:! I 1 1 i 1 i .1E\VELRY DETAIL 11, I No Deptr s'i 1 2 sac . , ECG t,l'. ..* PERFORATION DETAIL(PLANNED) SPF 23:e strn(MD) Top(TOD) E*-•- : Length PAD) 927,. . .... 23,1,;• :• ,,$1 '" E 1563 * ' ' 4 = .11011111.11111 4:* .4 i k , 8). tf ?4 t 4 e..; 4 TD=2,409'MD 12,371'TVD ,.......27-1---ic.•z _t--'-'_1_ - ...., Page 6 Revision 0 May, 2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 7.0 Drilling / Completion Summary Paxton#5 is a grass roots exploration gas well to be drilled off the Paxton pad. Paxton#5 is a shallow pool exploratory well on the crest of the Paxton structural closure. It is above the Paxton PA,is above all currently productive reservoirs and hence is classified as an exploratory well. It will test numerous Upper Beluga and Lower Sterling objectives logged in the Paxton 3 and Paxton 4 wells. The base plan is a slightly deviated wellbore reaching a maximum inclination of 15.7 deg and a 350' vertical separation. Drilling operations are expected to commence approximately August 31nd, 2013. The Saxon Rig #147 will be used to drill and complete the wellbore. The Saxon Rig #147 is a mechanical telescoping double rated for approx. 11,800' MD. The production liner will be perforated after the rig has been RDMO. Surface casing will be run to 800' MD and cemented to surface to ensure protection of FW resources. Cement returns to surface will confirm TOC at surface. If cmt returns to surface are not observed, a Temp log will be run between 6 — 12 hrs after CIP to determine TOC. Necessary remedial action will then be discussed with AOGCC authorities. All waste & mud generated while drilling Paxton#5 will be hauled to the Kenai Gas Field G&I facility and slated for beneficial re-use or injected into the waste disposal well. General sequence of operations: 1. MOB Saxon Rig#147 to Paxton#5. 2. N/U and function test hl'r' diverter. .2 d orkr ((o „ 64,'A-` 3. Drill 9-7/8"hole to 800' MD. Run and cmt 7-5/8" surface casing. 4. N/D diverter,N/U &test 11"x 5M T3-Energy BOP. 5. Drill 6-3/4"hole section to 2,409' MD. Run wireline logs. Run and cmt 4-1/2"production liner. 6. TIH w/clean out assy, clean out liner to landing collar. Displace mud to 6%KCl filtered completion fluid. 7. TOH, LDDP 8. N/D BOP,N/U temp abandonment cap, RDMO 9. Swab and perforate well. Page 7 Revision 0 May,2013 Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 8.0 Mandatory Regulatory Compliance / Notifications Regulatory Compliance Ensure that our drilling and completion operations comply with the below AOGCC regulations. If additional clarity or guidance is required on how to comply with a specific regulation, do not hesitate to contact the Anchorage Drilling Team. • BOPs shall be tested at (2)week intervals during the drilling and completion of Paxton #5. Ensure to provide AOGCC 24 hrs notice prior to testing BOPs. • The initial test of BOP equipment will be to 250/2500 psi & subsequent tests of the BOP equipment will be to 250/2500 psi for 5/5 min(annular to 50% rated WP, 2500 psi on the high test for initial and subsequent tests). Confirm that these test pressures match those specified on the APD. • If the BOP is used to shut in on the well in a well control situation, we must test all BOP components utilized for well control prior to the next trip into the wellbore. This pressure test will be charted same as the 14 day BOP test. • All AOGCC regulations within 20 AAC 25.033 "Primary well control for drilling: drilling fluid program and drilling fluid system" • All AOGCC regulations within 20 AAC 25.035 "Secondary well control for primary drilling and completion: blowout prevention equipment and diverter requirements". • Ensure the AOGCC approved drilling permit is posted on the rig floor and in Co Man office. Exceptions Required: if • None Page 8 Revision 0 May, 2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company Summary of BOP Equipment and Test Requirements Hole Section Equipment Test Pressure(psi) 9-7/8" • 21-1/4"2M diverter Function test only • 11"x 5M T3-Energy Annular BOP 5 Su" • 11"x 5M T3-Energy Double Ram Initial Test:250/ 5er- o Blind ram in btm cavity (Annular 2500 psi) 6-3/4" • Mud cross • 11"x 5M T3-Energy Single Ram Subsequent Tests: • 3-1/8"x 2-1/16"5M Choke Manifold 250/251917T 3S-73z) • Standpipe,floor valves,etc (Annular 2500 psi) • Primary closing unit: 1 ea. —"Control Technologies", 5 station, 3000 psi, 120-gallon accumulator unit, with a remote control panel in the doghouse. • Primary closing hydraulic pressure is provided by an electrically driven triplex pump. Emergency pressure is provided by bottled nitrogen. Required AOGCC Notifications: • Well control event(BOPS utilized to shut in the well to control influx of formation fluids). • 24 hours notice prior to spud. • 24 hours notice prior to testing BOPs. • 24 hours notice prior to casing running & cement operations. • Any other notifications required in APD. Regulatory Contact Information: AOGCC Jim Regg/AOGCC Inspector/(0): 907-793-1236/Email:jim.regg@alaska.gov Guy Schwartz/Petroleum Engineer/(0): 907-793-1226/(C): 907-276-7542/Email:guy.schwartz@alaska.gov Victoria Ferguson/Petroleum Engineer/(0): 907-793-1247/Email: Victoria.ferguson@alaska.gov Primary Contact for Opportunity to witness:AOGCC.Inspectors@alaska.gov Test/Inspection notification standardization format:http://doa.alaska.gov/ogc/forms/TestWitnessNotif.html Notification/Emergency Phone: 907-793-1236(During normal Business Hours) Notification/Emergency Phone: 907-659-2714(Outside normal Business Hours) Page 9 Revision 0 May,2013 • • Paxton#5 Drilling & Completion Procedure Hilcorp Snaggy Company 9.0 R/U and Preparatory Work 9.1 Set 10-3/4" conductor at 80' below ground level. '/ 9.2 Dig out and set cellar 10' below ground level. Ensure cellar sticks up 3 —4 inches above ground level. 9.3 Install slip-on 11"x 5M wellhead. Install both"A" and"B" sections. Cut conductor so that top of`B" section flange is 2' below ground level. Ensure to orient wellhead so that tree will line up with flowline later. 9.4 Install water meter on water well. We will have to track usage. 9.5 Level pad and ensure enough room for layout of rig footprint and R/U. 9.6 Layout Herculite on pad to extend beyond footprint of rig. 9.7 R/U Saxon Rig 147, spot service company shacks, spot& R/U company man&toolpusher offices. 9.8 After rig equipment has been spotted, R/U handi-berm containment system around footprint of rig. 9.9 Set up communications systems. R/U service company shacks. 9.10 Mix mud for 9-7/8"hole section. 9.11 Set test Plug in wellhead prior to N/U diverter to ensure nothing is dropped into the wellbore. 9.12 Install 5" liners in mud pumps. We will pump at 500—550 gpm. • TSM 1000 mud pumps are rated at 4250 psi (85%)/275 gpm(100%)with 5" liners. Page 10 Revision 0 May, 2013 40 • 11 Paxton #5 Drilling & Completion Procedure Hilcorp Enagy Company 10.0 N/U 2171/4" Diverter System 10.1 N/U 21-1/4" Hydril MSP 2M diverter System. • N/U 16-3/4" 3M x 21-1/4" 2M DSA(Hilcorp) on 16-3/4" 3M wellhead. • N/U 21-1/4" diverter"T". • Knife gate, 16" diverter line. • Ensure diverter R/U complies with AOGCC reg 20.AAC.25.035(C) 10.2 Function test diverter. Ensure that the knife gate and annular are operated on the same circuit so that knife gate opens prior to annular closure. 10.3 Ensure to set up a clearly marked"warning zone" is established on each side and ahead of the vent line tip. "Warning Zone"must include: • A prohibition on vehicle parking • A prohibition on ignition sources or running equipment • A prohibition on staged equipment or materials • Restriction of traffic to essential foot or vehicle traffic only. 10.4 Set wear bushing in wellhead. Drilling Pax#5 9/ 4.,, kK ru E4 / / ELEV,1�6 SUPPORT / C (TYP.) T`i�. b11 / p 3P W/ ( lits IONS "r ® ' — ��rt PAXTON#3 WELL / . N 2230401 05 / '� r 11 E-1346419 18 / 11 <t ELEV.14820' / 9 / �9' PAXTO #2WELL ' J € .y aa# •: N 23o32301 //� E4 14840' / t � y � g Ow ! 1CY # ( PAXTON#t WELL ! R 1�'"' aou CSP CELLAR / N:2230337 36 / r+ E:134644143 / � �,�'p� {�y El 148.29' / / 1. 91 k\'41a / / ill t< \ / ,� , 4ilii. �4 44t �� 1 NRE / i \- ,,,„. -,...1 MAIN GATE r .. / / •-.. / 4 / -� / / �.� / / , WATER / =+ti -.`- WELL / �� HOUSE / �w 4/ c t/ A. Page 11 Revision 0 May, 2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company Paxton#5 Diverter Schematic For 9-7/8-Hole Section III 1!i 1I1 11111LII-11l1a111 (11 Annular Preventer ". Hydr S 21-Y."2M . / ill Eli 1111 101 di Knife Gate 111 i11111!111! :W UI Z It� 16"Diverter Line 1 Diverter Tee,21-'/."x 21-/"x 2M WI 16"ANSI 150 outlet IlIi «r rr ill ill ill lit 11"5M x 21-%.'2M DSA Exil�h f 41similIrs r _'f i ? ii tf A Pir{, o 4 ii i. 1 f Seaboard 11"5M Casing 3 i 1 1 _ head Assy 10-% Page 12 Revision 0 May, 2013 • • litPaxton#5 Drilling & Completion Procedure Hilcorp Energy Company 11.0 Drill 9-7/8" Hole Section 11.1 Pick up 9-7/8" directional assy: • Ensure BHA Components have been inspected previously. • Drift & caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. • Ensure TF offset is measured accurately and entered correctly into the MWD software. • Confirm that the bit is dressed with 3 x 13's, 1 x 24 CJ. • Motor AKO should be set at 1.18 deg. 11.2 Primary 9-7/8" bit will be the Smith XR+ (IADC 117). Two of these are available at the OSK dock. SMITH BITS XIorer Expanded A Schlumberger Company " 8r, R+ Milled Tooth (250.825 MM)ID:0050111100 a FEMMES ER:7741 IADC:117t "7 •The Gemini twin zeal item <� oon:. of a primary seal which protect the bearing and a secondary seal that protects the primary seal I i. This dual seal s}. em will `a• *—111V' t perform reliably for extended periods of time in high RPM. heavier\NOS.high mud T." t weight and severe dogleg ` ., appications -" "rale ■Spinodal 2 bearing with . ,, silver plated component; .'I „.y mutes longer rum at M . higher ROP. The proprietary material offer maximum wear retittance and withstands extreme load forces for longer periods than conventional bearing Xplorer Expanded bits are specifically designed to drill soft formation:with exceptional material ROP and rehabiitj. With the proven Gemini Twin Seal system and the ultra durable •Premium hardmatal material \+ ' ` MIC2 hardmetal.there bit deliver maximum ROP and long run times in a wide range reduces wear.provides t/..' N of applications superior durability and ;,^°ry, ensures that a full gauge .4 Specifications hole is drifted Bearing'ripe Spinodaf 2 Bearing w1Silver Plated Components Seal Type Genn"Twin Seal$yotem Bit Connection Type 6-518`API Reg Rows Total 7 Inner 4 Gage 3 Inserts/Teeth Total 54 Inner 25 Ga9e:29 WeighParameter 10 CI X To 50.000(lbs) 4.545 To 22.725(daN) 4 To 22(Tonnes) Rater/Speed(RPM 1 300 To 50 Operating parameter:are typical range: Please contact your Smith Bit: representative for recommendations for your indnidual well Page 13 Revision 0 May, 2013 Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 11.3 4-1/2"HWDP will come from Saxon. 11.4 Daily Jars will come from Weatherford. 11.5 9-7/8"proposed BHA: • 9-7/8" MTB (IADC 117) • A800M7840XP mud motor. • 9-3/4"NM Stabilizer • 6-3/4"NM Pony Stabilizer • 9-3/4"NM Stabilizer • Telescope 675 NF (MWD) • 6-3/4"NM DC • (5) 4-1/2"HWDP • 6-1/4" HDL-100 Dailey Jar • (15) 4-1/2"HWDP • 4-1/2" DP to surface. 11.6 No LWD tools will be run on the 9-7/8"hole section. 11.7 Begin drilling out from 10-3/4" conductor at reduced flow rates to avoid broaching the conductor. 11.8 Drill 9-7/8"hole section to 800' MD /799' TVD. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Pump at 500 gpm. Ensure shaker screens are set up to handle this flowrate. • Keep swab and surge pressures low when tripping. • Make a wiper trip after 500' unless hole conditions dictate otherwise. • Ensure shale shakers are functioning properly. Check for holes in screens on connections. • TD the hole section in a good shale btwn 750' & 850' MD. • Take MWD surveys every stand drld. • Mud logging requirements: Not required for surface hole unless specified by the AOGCC in the APD. ,t4 < (/ ' �� r r .4-,2„-,4„._ - 7-41, .. 2<3 Page 14 Revision 0 May, 2013 Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 11.9 9-7/8"hole mud program summary: Weighting material to be used for the hole section will be barite. Additional barite will be on location to weight up the active system(1)ppg above highest anticipated MW. Canrig PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller's console, Co Man office, Toolpusher office, and mud loggers office. System Type: 9.5—9.6 ppg Pre-Hydrated Aquagel/freshwater spud mud Properties: Depths Density Viscosity Plastic Viscosity Yield Point API FL pH 80-800' 9.5—9.6 60-85 10-30 45-25 <10 8.5-9.0 ppg System Formulation: Aquagel / FW spud mud Product Concentration Fresh Water 0.905 bbl soda Ash 0.5 ppb AQUAGEL 12-15 ppb caustic soda 0.1 ppb (9 pH) BARAZAN D+ as needed BAROID 41 as required for weight 9.5ppg PAC-L/DEXTRID LT if required for<10 FL ALDACIDE G 0.1 ppb X-TEND II 0.02 ppb 11.10 At TD; pump sweeps, CBU, and pull a wiper trip back to the 10-3/4" conductor shoe. 11.11 TOH with the drilling assy, handle BHA as appropriate. 11.12 No open hole logs are planned for the 9-7/8"hole section. While logging the 6-3/4"hole section, the wireline logs will be pulled back across the surface casing to obtain a GR signature through the surface casing. Page 15 Revision 0 May,2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 12.0 Run 7-5/8" Surface Casing 12.1 R/U and pull long wearbushing. 12.2 R/U Weatherford 7-5/8" casing running equipment. • Ensure 7-5/8"BTC x 4-1/2" CDS 40 XO on rig floor and M/U to FOSV. • R/U fill up line to fill casing while running. • Ensure all casing has been drifted on the location prior to running. • Be sure to count the total #of joints on the location before running. • Keep hole covered while R/U casing tools. • Record OD's, ID's, lengths, S/N's of all components w/vendor&model info. 12.3 P/U shoe joint, visually verify no debris inside joint. 12.4 Continue M/U&thread locking shoe track assy consisting of: • (1) Shoe joint w/float shoe bucked on(thread locked). Install (2) centralizers on shoe joint over a stop collar. 10' from each end. • (1) Joint with coupling thread locked. Install one centralizer mid tube over a stop collar. • (1) Joint with float collar bucked on pin end&thread locked. Install one centralizer mid tube over a stop collar. Install another centralizer over coupling at top of joint. • Ensure proper operation of float equipment. 12.5 Continue running 7-5/8" surface casing • Fill casing while running using fill up line on rig floor. • Use "API Modified"thread compound. Dope pin end only w/paint brush. • M/U connections to the base of the triangle stamped on the pin end. Note M/U torque values required to achieve this position. Estimated torque to reach base of triangle: 10,750 ft-lbs. • After making up several connections, use the torque required to M/U to base of triangle as the M/U torque and continue running string. • Install (1) centralizer every other joint to 300'. Do not run any centralizers above 300' in the event a top out job is needed. • Utilize a collar clamp until weight is sufficient to keep slips set properly. 7-5/8" BTC Estimated M/U Torque Casing OD Est Torque to Reach Triangle Base 7-5/8" 7,630 ft-lbs Page 16 Revision 0 May, 2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy ComPanY Tenaris Casing and Tubing Performance Data Choose pipe size,wall thickness and steel grade to view API connection options and performance data. Size 0 Wall ' Grade j' Connection In Unit 1111.113 Pipe Body Data GEOMETRY A Nominal OD 7.625 in Wall Thickness 0.375 in API Drift Diameter 6.750 in Nominal Weight 29.70 lbs/ft Nominal ID 6.875 in Alternate Drift Diameter n.a. Plain End Weight 29.06 lbs/ft Nominal Cross Section 8.541 sq in PERFORMANCE Steel Grade L80 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Body Yield Strength 683,000 lbs Internal Yield Pressure 6,890 psi Collapse Pressure 4,790 psi .__. Connection Data GEOMETRY Regular OD 8.500 in Threads Per Inch 5 Make-Up Thread Turns 1 PERFORMANCE Steel Grade L80 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Joint Strength 721,000 lbs Internal Pressure 6,890 psi Resistance TenarisHydril Premium Connections w'Vu Wim' Print I Contact Us I Ver 8.6 12.6 Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 12.7 Slow in and out of slips. 12.8 P/U casing hanger joint and M/U to string. Casing hanger joint will come out to the rig with the landing joint already M/U. Position the shoe as close to TD as possible. Strap the landing joint while it is on the deck and mark the joint at(1) ft intervals to use as a reference when landing the hanger. 12.9 Lower string and land out in wellhead. Confirm measurements indicate the hanger has correctly landed out in the wellhead profile. Page 17 Revision 0 May, 2013 Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 12.10 R/U circulating equipment and circulate the greater of 1 x casing capacity or 1 x OH volume. Elevate the hanger offseat to avoid plugging the flutes. Stage up pump slowly and monitor losses closely while circulating. Circulate longer if necessary to prepare mud for upcoming cmt job. 12.11 After circulating, lower string and land hanger in wellhead again. Ensure to run in the hanger lock downs as the casing could be lifted during the cmt job if any packing off occurs. Consider chaining the surface casing down to the rig floor if possible. Fdownward: (395 psi x 37.122in2)x (29.7 x 800) = 38,423 lbf Fupward: 493 psi x 45.66 in2 = - 22,510 lbf F1et: 38,423 lbf—22,510 lbf= 15,913 lbf(downward) Page 18 Revision 0 May,2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 13.0 Cement 7-5/8" Surface Casing 13.1 Hold a pre job safety meeting over the upcoming cmt operations. Make room in pits for volume gained during cement job. Ensure adequate cement displacement volume available as well. 13.2 R/U cmt head (if not already done so). Ensure top and bottom plugs have been loaded correctly. 13.3 Pump 5 bbls 10 ppg spacer. Test surface cmt lines. 13.4 Pump remaining 35 bbls 10 ppg spacer. 13.5 Drop bottom plug. Mix and pump cmt per below recipe. 13.6 Cement volume based on annular volume+ 100% open hole excess. Job will consist of lead& tail, TOC brought to surface. Estimated Total Cement Volume: Section: Calculation: Vol (BBLS) Vol (ft3) LEAD: 80' x .0397 bpf= 3.2 18 10-3/4" Conductor x 7- 5/8" casing annulus: LEAD: (470' — 80') x .038 bpf x 2 = 30 169 9-7/8" OH x 7-5/8" Casing annulus: Total LEAD: 33.2 187 TAIL: (250') x .038 bpf x 2 = 20 112 9-7/8" OH x 7-5/8" Casing annulus: TAIL: 90 x .0459bpf = 4.1 23 7-5/8" Shoe track: Total TAIL: 24.1 135 Page 19 Revision 0 May, 2013 • Paxton#5 Drilling & Completion Procedure Hilcorp Energy Company Cement Slurry Design: Lead Slurry (470' MD to surface) Tail Slurry (800' to 470' MD) System Extended Conventional Density 12 lb/gal 15.4 lb/gal Yield 2.44 ft3/sk 1.22 ft3/sk Mixed Water 14.349 gal/sk 5.507 gal/sk Mixed Fluid 14.469 gal/sk 5.507 gal/sk Code Description Concentration Code Description Concentration Type1 Cement 94 lb/sk WBWOB Type1 Cement 94 lb/sk WBWOB D110 Retarder 0.12 gal/sk VBWOC D046 Anti Foam 0.2 % BWOB Additives D046 Anti Foam 0.2 % BWOB D065 Dispersant 0.4% BWOB D079 Extender 2.0% BWOB S002 CaCl2 0.2 % BWOB D020 Extender 2.6% BWOB S002 CaCl2 0.2 % BWOB 12.7 After pumping cement, drop top plug and displace cement with 9.5 ppg 6% KC1/PHPA drilling fluid (mud and MW to be used on next hole section). 12.8 Ensure cement unit is used to displace cmt so that volume tracking is more accurate. 12.9 Displacement calculation: 710' x .0459 bpf= 32.6 bbls 12.10 Monitor returns closely while displacing cement. Adjust pump rate if necessary. If hanger flutes become plugged, open wellhead side outlet in cellar and take returns to cellar. Be prepared to pump out fluid from cellar. Have some sx of sugar available to retard setting of cement. 12.11 Do not overdisplace by more than '/2 shoe track volume. Total volume in shoe track is 4.1 bbls. 12.12 Be prepared for cement returns to surface. If cmt returns are not observed to surface, be prepared to run a temp log btwn 6— 12 hours after CIP. 12.13 Bump the plug with 500 psi over displacement pressure. Bleed off pressure and confirm floats are holding. If floats do not hold, pressure up string to final circulating pressure and hold until cement is set. Monitor pressure build up and do not let it exceed 500 psi above final circulating pressure if pressure must be held. 12.14 R/D cement equipment. Flush out wellhead with FW. 12.15 Back out and L/D landing joint. Flush out wellhead with FW. Page 20 Revision 0 May, 2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 12.16 M/U pack-off running tool and pack-off to bottom of Landing joint. Set casing hanger packoff. Run in lock downs and inject plastic packing element. Test to 3000 psi. 12.17 Lay down landing joint and pack-off running tool. Ensure to report the following on wellez: • Pre flush type,volume(bbls)&weight(ppg) • Cement slurry type, lead or tail,volume&weight • Pump rate while mixing, bpm,note any shutdown during mixing operations with a duration • Pump rate while displacing,note whether displacement by pump truck or mud pumps,weight&type of displacing fluid • Note if casing is reciprocated or rotated during the job • Calculated volume of displacement,actual displacement volume,whether plug bumped&bump pressure, do floats hold • Percent mud returns during job, if intermittent note timing during pumping of job.Final circulating pressure • Note if pre flush or cement returns at surface&volume • Note time cement in place • Note calculated top of cement • Add any comments which would describe the success or problems during the cement job NOTE:Send"As-Run"casing tally and"Csg and Cmt Report"to lkeller(Oilcorp.com and jbarrett wbilcorp.com Page 21 Revision 0 May,2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 14.0 BOP N/U and Test 14.1 N/D the 21-1/4" diverter. 14.2 N/U 11"x 5M T3-Energy BOP as follows: • BOP configuration from Top down: 11"x 5M T3-Energy annular BOP/11"x 5M T3-Energy double ram/11"x 5M mud cross/11"x 5M T3-Energy single ram. • Double ram should be dressed with 2-7/8" x 5"VBR in top cavity, blind ram in btm cavity. • Single ram should be dressed with 4-1/2" fixed ram. • N/U bell nipple, install flowline. 14.3 Run BOP test assy, land..!_t test plug(if not installed previously). • Test BOP to 250/A I psi for 10/10 min. Test annular to 250/2500 psi for 10/10 min. • Ensure to leave "A" section side outlet valves open during BOP testing so pressure does not build up beneath the test plug. 14.4 R/D BOP test assy. 14.5 Dump and clean mud pits, send spud mud to G&I pad for injection. 14.6 Mix 9.5 ppg 6%KC1/PHPA drilling fluid for 9-7/8"hole section. 14.7 Set short wearbushing in wellhead. 14.8 Rack back as much 4-1/2" DP in derrick as possible to be used while drilling the hole section. Page 22 Revision 0 May,2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 15.0 Drill 6-3/4" Hole Section 15.1 P/U 6-3/4 directional assy: • Ensure BHA Components have been inspected previously. • Drift & caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. • Ensure TF offset is measured accurately and entered correctly into the MWD software. • Motor AKO should be set at 1.18 deg. We will need the capability to achieve 2.5 deg/100 DLS to meet the directional plan. • Bit should be dressed with 3 x 13s. We need to pump at a 350 gpm to clean the hole effectively. DD should run independent hydraulics to confirm optimum TFA. 15.2 Primary bit will be the 6-3/4" Smith XR+ (IADC 117). Two of these are available at the OSK dock. Xplarer Expanded SMITH BITS A Schlumberger Company 6-3/4tt XR+ Milled Tooth (171 45 MM) IADC 117 eg.. AIM*S ° •Pi hg .'nal reduce:weer,pxo. l r dw1)Wey eed `;,'�;• enure:that a Exe geode + note k dedttd •The 6 The&at e"tia•,enateta:tomer: r e Che petered Burst' e al s x' peomde:,.)PenOt Ceetecaaet be the bearang and enable 4. the ba:b"se',the xdarnMe tetab e n y t'^ r •Sptrxydat 2 t eared en:^ure: g longer run;et Mgher ROP a, ,, �� d Thr.proprietary mate .`a' rR . e`«"" dRCrt Max+:nnlra%wt ar teWoleAce end wentte d: extreme bad Ewe,:kyr roger pee>od<than ma• tenat:, Xplotet Expanded tot:are:p*Kemeny 4e:rgned to doe:oft teernee em wort+excepe�O%l ROP and retiabtt*y W1th the penmen Gene**ham Seat:y:xm end the ube dwaNe MtC2 ha d eat.the e b dowerx mrm enaROP and toad run t me:e a w ranpo of apo kae.pn: Specrftcettons $car wp Type Spenadar 2 Beaten wnSeret Ptate4 Carhporte e.: Seal Type O,ra)Me'crwl Bone.Seal: 8d Cennecnon Type 3.1/7*AP;Rep Rotor. Total.7 te"er 4 Gape 3 hadertJieeth Totat 56 Ynner 25 Gee 31 operetng Parameters WmptoosBe 5.000 To30.00Jfb:) 2 272 To 13.635(4atil 2 To 14(Tonne:) Rotary Speed(RPM) 300 To 50 Op eransed parameter.ere TYPCSI range:..Pira:a contact rove Sm,en Bet representative for repornmend.anon:to ycear a drrduet well. Page 23 Revision 0 May, 2013 i ! Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 15.3 Directional BHA: • 6-3/4"roller cone bit • A4757820AD Mud motor(AKO set at 1.15) • 6-5/8"NM Stabilizer • 4.75"NM Pony Collar • 6-5/8"NM Stabilizer • IMPulse 2k Medium flow MWD • 4.75" Collar • 4.75" Collar • (5)joints 4-1/2"HWDP • HDL-100 Dailey Drlg Jar • (15)joints 4-1/2" HWDP 15.4 TIH to TOC (+/- 710' MD). 15.5 It/IJ and test casing to 3500 psi/30 min. Ensure to record volume/pressure and plot on FIT graph. 15.6 6-3/4"hole section mud program summary: Weighting material to be used for the hole section will be barite. Additional barite will be on location to weight up the active system (1)ppg above highest anticipated MW. MD Totco PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller's console, Co Man office, Toolpusher office, and mud loggers office. System Type: 9.5ppg 6%KO/PI-IPA fresh water based drilling fluid. Properties: Depths Density Viscosity Plastic Viscosity Yield Point HTHP FL pH 800'—2409' 9.5—9.6 60- 100 15-30 20-30 <10 8.5-9.5 Page 24 Revision 0 May,2013 Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company System Formulation: 6% KCI / PHPA Product Concentration Water 0.905 bbl KCI 22 ppb Caustic 0.2 ppb (9 pH) BARAZAN D+ 1.1 ppb (as required 18+YP) DEXTRID LT 1-2 ppb EZ MUD DP 0.5 ppb (initial .15 ppb) ALDACIDE G 0.1 ppb BAROID 41 208 ppb (as needed to 9.6 ppg) 15.7 Drill out plugs and shoe track. Clean out rat hole and drill an addition 20' of new formation. 15.8 CBU and condition mud for FIT. 15.9 Conduct FIT to 12 ppg EMW. Note: Offset field test data predicts frac gradient at the 7-5/8"shoe to be btwn 17& 19 ppg EMW. A 12 ppg FIT results in a 2.4 ppg kick margin while drilling with a 9.6 ppg MW. 15.10 Drill 6-3/4"hole section to 2,409' MD/2,371' TVD. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Pump at 300 - 350.gpm. Ensure shaker screens are set up to handle this flowrate. • Utilize inlet experience to drill through coal seams efficiently. Coal seam log will be provided by Hilcorp Geo team, try to avoid sliding through coal seams. Work through coal seams once drilled. • Keep swab and surge pressures low when tripping. • Make wiper trips every 500' or every couple days unless hole conditions dictate otherwise. • Ensure shale shakers are functioning properly. Check for holes in screens on connections. • Adjust MW as necessary to maintain hole stability. Keep HTHP fluid loss < 10. • Take MWD surveys every stand drld. • Mud Logging requirements: Surface casing to total depth, 20 ft samples with 10' samples in zones of interest,two sets of cuttings, chromatograph, pixler plots. 15.11 At TD; pump sweeps, CBU, and pull a wiper trip back to the 7-5/8" shoe. 15.12 TOH with the drilling assy, stand back BHA if possible. 15.13 R/U and run OH logs consisting of: • Gamma Ray(GR) • CNL-LDT • Resistivity • Dipole Sonic Page 25 Revision 0 May,2013 Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company • NMR • Formation Pressure Tester(MDT) 15.14 Monitor the well at all times on the trip tank while logging. 15.15 After logging objectives accomplished,pick up a wiper trip BHA and make another run to TD. Circ B/U at TD and TOH. Rack back DP, handle BHA as appropriate. 16.0 Run 4-1/2" Production Liner 16.1 M/U and rack cement stand in derrick. • Ensure to drift components prior to M/U. Ensure dart will pass through components. • Confirm largest OD of packer assy will pass through wear bushing. 16.2 Install and test 4-1/2" casing ram in lower cavity if not done previously. 16.3 R/U Weatherford 4-1/2" casing running equipment. • Ensure 4-1/2"DWC/C HT x DP crossover on rig floor and M/U to FOSV. • R/U fill up line to fill casing while running. • Ensure all casing has been drifted on the deck prior to running. • Be sure to count the total# of joints on the deck before running. • Keep hole covered while R/U casing tools. • Record OD's, ID's, lengths, S/N's of all components w/vendor& model info. 16.4 P/U shoe joint, visually verify no debris inside joint. 16.5 Continue M/U &thread locking shoe track assy consisting of: • (1) Shoe joint w/shoe bucked on&threadlocked(coupling also thread locked). • (1)Joint with float collar bucked on pin end&threadlocked (coupling also thread locked). • (1)Joint with landing collar installed INSIDE pin end. • Solid body centralizers will be pre-installed on shoe joint& FC joint. • Install a solid body centralizer on landing collar joint. Leave centralizers free floating so that they can slide up and down the joint. • Ensure proper operation of float shoe. 16.6 Continue running 4-1/2"prod liner • Fill casing while running using fill up line on rig floor. • Use "API Modified"thread compound. Dope pin end only w/paint brush. • Install solid body centralizers on every joint to 800' MD. Leave the centralizers free floating. • Utilize a collar clamp until weight is sufficient to keep slips set properly. Page 26 Revision 0 May,2013 S • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 4-1/2" DWC/C HT M/U torques Casing OD Minimum Maximum Yield Torque 4-1/2" 5,800 ft-lbs 6,500 ft-lbs 8,400 ft-lbs Technical Specifications Connection Type:wW SIze(O.D.): Weight(Wall): Grade: DWC/C-HT Tubing 4-1/2 in 12.60 ib/ft(0.271 in) 1.80 sain.rd Materialde 1.83 Grade WOIL 80,000 Minimum Yield Strength(psi) 111111111111111111111111F USA 95.000 Minimum Ultimate Strength(psi) V^y et 14 Vi Saeeisolation Peey.Setie 154 Pipe Dimensions 1lovlton IX 17011 4.500 Nominal Pipe Body 0.0.(In) Famr7,b�su 3.058 Nominal Pipe Body 1.0.(in) Lima yAu:>4x"7.717,-.'•F��e' 0.271 tr niinal Wal Thickness(in) 12.60 Ncminai Weight(lbs/ft) 12.25 Plain End Weight(bs/t) 3.600 Nominal Pipe Body Area(sq in) Pipe Body Performance Properties 288.000 M71n'mum Pipe Body Yield Strength(lbs) 7,500 Min'mum Collapse Pressure(psi) 8.430 Minimum Internal Yield Pressure(psi) 7,700 Hydrostatic Test Pressure(psi) Connection Dimensions 5.000 Connection 0.0.(In) 3.958 Connection I.0.(in) a`. 3.833 Connection Drift Diameter(in) 3.94 Make-up Loss(in) 3 600 Critical Area(sq in) 100.0 Jo'nt Efficiency('h) Connection Performance Properties 288.000 Joint Strength(lbs) 14,290 Reference String Length(h) 1.6 DesIgn Factor 314,000 API Joint Strength(lbs) 288,000 Compression Rating(lbs) 7.500 API Colepse Pressure Rating(psi) 8.430 API Internal Pressure Reslslanco(psi) 81.6 Maximum Uniaxial Bend Rating(degrees/100 ft) Appoximated Field End Torque Values 5,800 Minimum Final Torque(ft-lbs) 6,500 Maximum Final Torque(fFtbs) 8,400 Connoction Yield Torque(ft-lbs) For detalke Intonation on performance proporuos,rotor to OWC Coinectbn Dila Notes on rotatrine patrla). CornecPon 59o(%( !ons well Ow cenirol Cl VNA USA tem co.Tatt as Of awl data re feet Spedfcslons lei subjeti7 to charge ettno4 mow.Caffein C rnocllen spocikaCtns oro0e nd ei on the mechwical fxcpsIttes of Itto p'po.Medtankni Gerpertes of nil prcyio'My pipe grade,won,obaakPod horn nit pablutons and an sut.4.c1 to(Mnyi.Properties c!ml prc>rtri lfey anodes cnevsd bo ocrfar.Cd wit+ LM nil Liters aro&defied to obteh cvrrnnt connection spocilcrawn nod verify p p+rnrchn focal propetios lit'oath opptic lice 9/42012 Page 27 Revision 0 May, 2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 16.7 Ensure to run enough liner to provide for approx 200' overlap inside 7-5/8" casing. Ensure hanger/pkr will not be set in a 7-5/8" connection. 16.8 Before picking up Baker ZXP liner hanger/packer assy, count the # of joints on the pipe deck to make sure it coincides with the pipe tally. 16.9 M/U Baker ZXP liner top packer. Fill liner tieback sleeve with"Pal mix", ensure mixture is thin enough to travel past the HRD tool and down to the packoff. Wait 30 min for mixture to set up. 16.10 RIH one stand and circulate a minimum of one liner volume. Note weight of liner. Do not exceed 60% of the nominal liner hanger setting pressure. Nominal liner hanger setting pressure is 2500 psi. 60% of this value is 1500 psi. 16.11 RIH w/liner on DP no faster than 1-1/2 min/ stand. Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 16.12 Slow in and out of slips. 16.13 Continue to fill the DP every stand down using fill up line on rig floor. Do not stop to fill casing. 16.14 P/U the cmt stand and tag bottom with the liner shoe. P/U 2' off bottom. Note slack-off and pick-up weights. 16.15 Stage pump rates up slowly to circulating rate without exceeding 60% of the liner hanger setting pressure (1500 psi). Circ and condition mud with the liner on bottom. Reduce the low end rheology of the drilling fluid by adding water and thinners. 16.16 Reciprocate & rotate string if hole conditions allow. Circ until hole and mud is in good condition for cementing. Page 28 Revision 0 May, 2013 • • Paxton#5 Drilling & Completion Procedure Hilcorp Energy Company 17.0 Cement 4-1/2" Production Liner 17.1 Hold a pre job safety meeting over the upcoming cmt operations. 17.2 Attempt to reciprocate the liner during cmt operations. 17.3 Pump 5 bbls 12 ppg MUDPUSH II spacer. 17.4 Test surface cmt lines to 4500 psi. 17.5 Pump remaining 15 bbls 12 ppg MUDPUSH II spacer. 17.6 Mix and pump 15.3 ppg class "G" cmt per below recipe. Ensure cmt is pumped at designed weight. Job is designed to pump 19994(OH OH excess. Estimated Total Cement Volume: Section: Calculation: Vol(BBLS) Vol (ft3) 7-5/8"x 4 DP"Overlap: 200' x 0.03 = 6 33.7 7-5/8"x 4-1/2"Liner Overlap: 200' x 0.026 = 5.3 29.8 6-3/4"OH x 4-1/2"Liner: (2409' — 800') x 0.026 x 1.5 = 63 354 4-1/2" Shoe track: 90' x 0.015 = 1.4 7.9 Total Volume (bbls): 6 + 5.3 + 63 + 1.4 = 75.7 bbl 425 ft3 Total Volume(sx): 425 ft3 / 1.57 = 270 sx Page 29 Revision 0 May, 2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company Siurry Information: System LiteCRETE Density 12.5 lb/gal Yield 1.57 ft3/sk Mixed Water 5.476 gal/sk Mixed Fluid 5.476 gal/sk Expected Thickening 100 Bc at 05:57 hr:mn Expected ISO/API 15 mL in 30.0 min at 175degF / 1000 psi Fluid Loss Additives Code Description Concentration D046 Anti Foam 0.2% BWOC D202 Dispersant 0.5% BWOC D400 Gas Control Agent 0.5% BWOC S002 CaCl2 0.1% BWOC 17.7 Drop DP dart and displace with 9.5 ppg drilling fluid. 17.8 Reduce pump rate to 3 bpm prior to latching DP dart into liner wiper plug. Note plug departure from liner hanger running tool and resume pumping at full displacement rate. Displacement volume can be re-zeroed at this point. 17.9 If elevated displacement pressures are encountered,position liner at setting depth and cease reciprocation. Monitor returns &pressure closely while circulating. Notify Drilling Foreman immediately of any changes. 17.10 Bump the plug and pressure up as required by Baker procedure to set the liner hanger(20% above nominal setting pressure. 2500 psi is nominal setting pressure. Pressure up to 3000 psi to confirm hanger setting. 17.11 Slack off total liner weight plus remaining string weight to confirm hanger set. 17.12 Do not overdisplace by more than V2 shoe track. Shoe track volume is 1.7 bbls. 17.13 Pressure up to 3300 psi and hold for 2 minutes to stroke the hydraulic pusher tool and set packer. 17.14 Pressure up to 4200 psi and hold for 1 minute neutralize&release the running tool (HRD-E) from the liner. Page 30 Revision 0 May,2013 • rip Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 17.15 Bleed pressure to zero to check float equipment. 17.16 P/U to P/U weight plus 1 ft. 17.17 Close annular and test 4" DP x 7-5/8" annulus to 1500 psi/ 10 min to test liner top packer. 17.18 Bleed off pressure, open up annular. 17.19 Pressure up to 500 psi down DP and pick up to remove the RS packoff bushing from the RS nipple. Bump up pressure as req'd to maintain 500 psi DP pressure while moving pipe until the pressure drops off rapidly, indicating pack-off is above the sealing area(ensure that 500 psi will be enough to overcome hydrostatic differential at liner top). 17.20 Immediately with the loss of pressure and before DP reaches zero, initiate circulation while picking up to position the bottom of the stinger inside the tieback sleeve. Increase pump rate to wellbore clean up rate until the sleeve area is thoroughly cleaned. 17.21 Pick up to the high-rate circulation point above the tieback extension, mark the pipe for reciprocation, do not re-tag the liner top, and circulate the well clean. 17.22 Watch for cement returns and record the estimated volume. Rotate & circulate to clear cmt from DP. 17.23 POOH, verify the liner top packer received the required setting force by inspecting the rotating dog sub. Page 31 Revision 0 May,2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company Backup release from liner hanger: 17.24 If the HRD-E tool still does not release hydraulically, left-hand(counterclockwise)torque will have to be applied to the tool. This torque acts to shear brass screws. Bleed off pump pressure and ensure that the tool is in the neutral position. Apply left-hand torque as required to shear screws. 17.25 NOTE: Some hole conditions may require movement of the drillpipe to "work"the torque down to the setting tool. 17.26 After screws have sheared,the top sub and body of the setting tool will turn 1/4 turn. Then proceed slacking off set-down weight to shear second set of shear screws. The top sub will drop 1-3/4 inches. At this point, the bottom sub no longer supports the collet fingers. Pick straight up with workstring to release collet from the profile. Ensure to report the following on wellez: • Pre flush type,volume(bbls)&weight(ppg) • Cement slurry type, lead or tail,volume&weight • Pump rate while mixing,bpm, note any shutdown during mixing operations with a duration • Pump rate while displacing,note whether displacement by pump truck or mud pumps,weight&type of displacing fluid • Note if casing is reciprocated or rotated during the job • Calculated volume of displacement, actual displacement volume,whether plug bumped&bump pressure,do floats hold • Percent mud returns during job, if intermittent note timing during pumping of job.Final circulating pressure • Note if pre flush or cement returns at surface&volume • Note time cement in place • Note calculated top of cement • Add any comments which would describe the success or problems during the cement job Page 32 Revision 0 May, 2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 18.0 Wellbore Clean Up & Displacement 18.1 M/U casing clean out assy complete with casing scraper assys for each size casing in the hole. • 3-3/4"bit or mill. • Casing scraper&brush for 4-1/2" 12.6# casing (MI Swaco -Multiback) • +1- 1700' 2-7/8"tbg • PBR Polish mills • Casing scraper&brush for 7-5/8" 29.7# casing (MI Swaco -Multiback) • 4-1/2" drill pipe to surface. 18.2 TIH&polish PBR. Ensure bit is approx. 15 —25' above the LC when the PBR polish mill no— go lands out on the liner top. • Circulate as needed on trip in if string begins to take weight. • Circulate hi-vis sweeps as necessary to carry debris out of wellbore. • The objective of the clean out run is to ensure wellbore is clean and free of solids, displace mud from wellbore, and ensure tie back sleeve is polished and ready to receive seal assy. QQ � 18.3 After wellbore has been cleaned out satisfactorily using mud,test casing to 3500 psi/30 min 4L.k 18.4 Displace drilling fluid in wellbore with a hi-vis pill followed by fresh water. • Circulate fresh water into wellbore until clean-up is satisfactory. Do not recirculate fluid, • After a couple circulations using FW, short trip the assy to bring the upper 7-5/8"multi-back assy to surface. • RIH again&tag landing collar w/3-3/4"bit. Continue circulation as necessary until fluid cleans up. Make another short trip if necessary. • Pump a chemical train followed by filtered 6%KC1 after fluid has cleaned up satisfactorily. Target NTUs are 80 - 100. 18.5 TOH w/clean out assy. LDDP on the trip out. Note any abnormal wear on the mill assy. 19.0 Run 4-1/2" Tieback String 19.1 Pull short wear bushing, get an accurate measurement of RKB to tubing hanger load shoulder. This will be sued for the tie-back space out calculation. 19.2 R/U 4-1/2" casing handling equipment. • Ensure XO to DP made up to FOSV and ready on rig floor. • String should stay full while running,r/u fill up line and check as appropriate. 19.3 P/U tieback seal assy and set in rotary. Ensure to inspect seal assy for any damage &remove any plastic wrap or tape. Page 33 Revision 0 May, 2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 19.4 M/U first joint of 4-1/2"to seal assy. 19.5 Run 4-1/2"tieback to installation point of SCSSV. • Following running procedure outlined above. • Install SCSSV to position valve 300' below ground level. 19.6 Install SCSSV to position valve 150' below ground level. • R/U SCSSV control line spooler and hang control line sheave derrick. • M/U SCSSV assy to production tubing. • Terminate and test control line into SCSSV. Test to 3500 psi/30 min. 19.7 Continue running 4-1/2"to position seal assy+/- 20' above liner top. 19.8 M/U 4-1/2" IBT x 4" drill pipe XO to a stand of DP. 19.9 M/U stand of DP to string, and M/U top drive. 19.10 Break circulation at 1 bpm and begin lowering string. 19.11 Note seal assy entering tieback sleeve with a pressure increase, Stop pumping and bleed off pressure, leave standpipe bleed off valve open. 19.12 Continue lowering string and land out on no-go. Set down 5 — 10k lbs. Mark the pipe at this depth as "NO-GO DEPTH". 19.13 P/U string& stand back DP stand, L/D XO. 19.14 M/U (or L/D)necessary joints and pup joints to position seal assy at 1 ft above"NO-GO DEPTH"when tie-back hanger lands out in wellhead. 19.15 P/U hanger assy. Top of hanger landing joint is 4-1/2" BTC. Ensure 4-1/2" BTC XO is available to allow circulation down the string. 19.16 R/U to circulate down tieback. Displace 4-1/2"x 7-5/8" annulus to inhibited packer fluid. 19.17 Confirm hanger has seated properly in wellhead. Should be approx. 10k lb on hanger when landed. Make note of actual weight on hanger on morning rpt. 19.18 Run in hanger lock downs. 19.19 Test 4-1/2"prod bore to 1500 psi/30 min. 19.20 Back out landing joint. M/U packoff running tool and packoff to bottom of landing joint. Set tubing hanger pack off. Test void to 3000 psi/ 10 min. Page 34 Revision 0 May,2013 • Paxton#5 Drilling & Completion Procedure Hilcorp Energy Company 19.21 Test 4-1/2"x 7-5/8"production annulus to 1500 psi/30 min. d 19.22 R/D casing running tools. 20.0 Install Production Tree 20.1 N/D BOP. 20.2 Install &test production tree. 20.3 RDMO Saxon rig#147 20.4 After rig has departed, run CBL to determine cmt quality behind 4-1/2"production liner. 20.5 Swab well down with slickline, perforate Lower Sterling A, Top Beluga Fm, Beluga 45, & Beluga 50 as indicated on logging results. Alert Leyrrk_c_ Page 35 Revision 0 May, 2013 • • II Paxton #5 Drilling & Completion t .4.. .. .. , Procedure Hilcorp Energy Company 21.0 BOP Schematic ilii11 111 Ill 111 III Ill iii 3,5" ",I,-)del b01 Ii III I<I 111111 III 3.00' t,., 0�. T 3 there" Model 7f182 to-alb I 11"5 (? M. i uuu � i 111 1E1111 III III 2.00 [ 014' ' .1 ," Ili nit-Ili.{tiasi 21/16 SM Kill Side 31/8 SM,. c'w ‘,,o. _ !! - 1,41' 1 Irtc Iet� .. Ain �: II5003 ti 111:III In Iti Ili Grade 2.00' it, III III Iii III I 1Øt • .. I it i i 4 , i v,„ . . 0 , . .. . 41 . i g II 103.` 7 S/8" Page 36 Revision 0 May, 2013 e 11Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 22.0 Wellhead Schematic BHTA,Bowen,4 1/16 SM FE X 7"-5 Stub acme Bowen Quick Union III 4.' 1.1tM:ti*$ V '0 IIIIIIMIIIIIIIIIMIII Nlik.- CI 0. 11111111111111111111 .40, Ctil* 4.,. Valve,Swab,WKM-M, ... 41/16 SM FE,HWO,DO trim .y. • * 42' 1/4,47. ,...4V.A., ,Z.,"1 ,..e., / o -,4' ,.`r le . . 1).4"'' t. ,..1111111411 let CO 1 (_o Valve,Wing,WKM-M, t3• .i l -------7-1-----,,,,, i •,'it al.„,q,:a ii --W 1 p .. _ . r. .v. - i 2 1/16 51VI FE,HIA/0,OD trim i . ii!I . i QS i i %amp 111111111111111111111111 IC .... ... Valve,Upper Master WKM-M,4 1/16 SM FE, o . HWO,DD trim 2........„,.... • iiiii , I.I.riA4.1.114 Valve,Master,WKM-M, • • 4 1/16 SM FE,HWO,DO trim 0 -o-''''' Multibowl Wellhead,SMB- 22,11 SIVI X 10 Y•SOW,w/ .. 4-2 1/16 SM SSO ._a••••# .0.......•. lc, * roks Or --- 1/ . • 1 . . ..t. t*.; • I; . 1• i04 0 ,.4 I• 1... 4, . I . ; 1 0'. ,..., Page 37 Revision 0 May,2013 i S 111 Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 23.0 Days Vs Depth Days Vs Depth 0 500 1000 8 :sop 2 2000 3000 0 5 10 15 20 25 Oar Page 38 Revision 0 May, 2013 0 0 II Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 24.0 Geo-Prog GEOLOGICAL PROGNOSIS WELL NAME: Paxton 5 FIELD. Ninilchik Unit Paxton Pad SURFACE X=206316 STATE: Alaska BOTTOM HOL X=206456 !ONG:-151.6083538 ND REF DATU KB Y=2230886 LAT.60 0968261 TVD REF ELEV ______-- COORD REF, SYSTEM NAD27GROUND ELEV 148 . _ ..........._. — - PROPOSED T 2403'MO , > ... I Objective Drill a 2403MD Beluga gas well. Geo Summary/ Location is a shallow pool exploratory well on the crest of the Paxton structural closure,It is above the Paxton Justification: PA,is above all currently productive reservoirs and hence is classified as an exploratory well. It will test ,numerous Upper Beluga and Lower Sterling objectives logged in the Paxton 3 and Paxton 4 wells. ANTICIPATED FORMATION TOPS&GEOHAZARDS EXPECTED i Intersection Points TOP . .. ..... ... . TOP NAME FLUID MD(FT) ----F TVD(FT/ TVDSS(FT1 Est.Pressure X Y +/- Lower Sterling A Pos Gas or Wet 927 -756 278 Top Beluga Fm GAS 1,347 -1,176 579 206441.0 2230800.0 10 Beluga 45 GAS 1,863 -1,692 801 10 Beluga 50 GAS 2,059 -1,888 , 10 Total Depth 2403 2,371 • -2 200 s.-Primary Objective =S,-,-,-ti :.-0-1, 0:y-,t .:, TARGET RADI 100 FT , -1"-- " ii.,„. --ay./4i 5 MIN DATA COLLECTION REOViREMENTS: Mud Logging: "be casing to total depth,20 ft samples with 10'samples in zones of interest,two sets of cuttings,chromatograph,pixler plots. LWD Data: None E-Line Log Data Quad Combo---Surf,Csg.To TO(GR,CNL-LDT,Res,Dipole Sonic,NMR,Formation Pressure Tester like MDT) .... COMPLETION TYPE Monobore -1--- - ! ANTICIPATED RATES 1500 MCFGD AP ARTIFICIAL LIFT EQUIPMENT 010 ifPb/-: TUBING SIZE — , — OTHER COMMENTS 1.Very similar to,and adjacent to,the Marathon Paxton#1 and Paxton#2 wells. 2.There are no wells completed in Section 13,there are no gas wells , within 3000'. The targets are above the PA,so tract operations will I prevail.No spacing exception needed. 3. Paxton 6 is a simple low deviation angle directional well.Target is BHL as specified above. 4. Paxton 6 will require a C-Plan exemption letter,similar to that 5.Bottom of surface casing needs to be shallower than 800'. Page 39 Revision 0 May, 2013 ! • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 25.0 Anticipated Drilling Hazards 9-7/8" Hole Section: Lost Circulation: Ensure 500 lbs of BaroFibre (Fibrous Cellulosic Material), 500 lbs SteelSeal (Angular, dual-composition carbon-based material), & 500 lbs different sizes of Calcium Carbonate are available on location to mix LCM pills at moderate product concentrations. Maintain 10ppb total of BaraCarbs/Barofibre/Steelseal while drilling the interval to control any seepage losses. Hole Cleaning: Maintain rheology w/Aquagel & Barazan D+. Sweep hole w/20 bbls Barazan D as necessary. Optimize solids control equipment to maintain density and minimize sand content. Maintain YP btwn 13 - 20 to optimize hole cleaning and control ECD. Wellbore stability: Maintain I Oppb total of BaraCarbs/Barofibre/Steelseal to strengthen wellbore. Maintain MW as necessary using additions of Barite. Filtrate control in the<6 range is required. Maintain additions of PAC L/Dextrid LT to maintain API fluid loss of<6. Maintain 6% KC1 in system for shale inhibition. Coal Drilling: The following lessons were learned from extensive experience drilling coal seams in Cook Inlet. The need for good planning and drilling practices is also emphasized as a key component for success. • Keep the drill pipe in tension to prevent a whipping effect which can disturb coal sections. • Use asphalt-type additives to further stabilize coal seams (BARO-TROL PLUS 4 ppb). • Increase fluid density as required to control the running coal. • Emphasize good hole cleaning through hydraulics, ROP and system rheology. In the event that sloughing coal is encountered, consider spotting a 30 ppb BAROTROL pill across the coal seam. The pill can be safely "squeezed" into the coal by closing the bag and applying pressure not to exceed the total annular pressure loss. H2S: H2S is not present in this hole section. No abnormal temperatures are present in this hole section. Page 40 Revision 0 May, 2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 6-3/4" Hole Section: Lost Circulation: Ensure 500 lbs of BaroFibre (Fibrous Cellulosic Material), 500 lbs SteelSeal (Angular, dual-composition carbon-based material), & 500 lbs different sizes of Calcium Carbonate are available on location to mix LCM pills at moderate product concentrations. Maintain l Oppb total of BaraCarbs/Barofibre/Steelseal while drilling the interval to control any seepage losses. Hole Cleaning: Maintain rheology w/Aquagel& Barazan D+. Sweep hole w/20 bbls Barazan D as necessary. Optimize solids control equipment to maintain density and minimize sand content. Maintain YP btwn 13 - 20 to optimize hole cleaning and control ECD. Wellbore Stability: Maintain l Oppb total of BaraCarbs/Barofibre/Steelseal to strengthen wellbore. Maintain MW as necessary using additions of Barite. HTHP control in the<5 range is required. Maintain additions of PAC L/Dextrid LT to maintain API fluid loss of<5. Maintain 6% KC1 in system for shale inhibition. Coal Drilling: The following lessons were learned from extensive experience drilling coal seams in Cook Inlet. The need for good planning and drilling practices is also emphasized as a key component for success. • Keep the drill pipe in tension to prevent a whipping effect which can disturb coal sections. • Use asphalt-type additives to further stabilize coal seams (BARO-TROL PLUS 4 ppb). • Increase fluid density as required to control the running coal. • Emphasize good hole cleaning through hydraulics, ROP and system rheology. In the event that sloughing coal is encountered, consider spotting a 30 ppb BAROTROL pill across the coal seam. The pill can be safely "squeezed" into the coal by closing the bag and applying pressure not to exceed the total annular pressure loss. H2S: H2S is not present in this hole section. No abnormal pressures or temperatures are present in this hole section. Page 41 Revision 0 May, 2013 111111 11110 II Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 26.0 Rig Layout Mx fr. A 1 ........'- 260 21— me •.-.7=."..-=...t.„_,_ 7=-a------a=I I I ji I.. .....-- 7 2: '..7777-i.... 0001 El WL----14 :MI Pry gruChiptill0 a.. "I 1___ _ _- 1 _....... im ---1111111111rirl , ' __ _____ _ --- IIear,_Atix_redis I"I 'II'1`1*-1 =.mo1 is,VI ,s m —o——m- Ili NM gIIIII T ! lc .m . — eI I . t, I II.:' 11 jii:i I--- Lill gra, pi*111-1_611111.1.11511‘ I 1. : 1 I EIP-E-XidtS • ..., 1, • amn Pt/i4P it I mo444 I /4'7:4—*-iiiiiiralli 4111 ...n, I StiNUE-1411/1-151115 1!I .1111.11111111 'i i-C.411.14- 1:.i 'ft 111111111111/4/044//••••••••• • :÷:niMIllbill' IIMIlrin's- OMNI .1 I III 1, III"Ifill ' Ill I a = --r•-•- final 44t t f r..,/. I 4,toK1/04114/4 111.1.31111110111111111"' •••• • III IIIIIIIIIIIIII= , wilim-gt ___ ...ImN ; ....... _ 1 SiLKIMILS.JIMain 1 i I MO .. r-r- == :::::: L 1 "111 I mum .-,. it! . 1 1 ..... = .......___ ' " ) '..: :,...". I ==I ......... ='---- 471, 11' a no I I I I - al lit I ... El a • F-10 _s_- =--- - • • •ii— t. 2:61126WIMI0LIMI1CC0O4VAN ... -- --2.-0* T - - sr-0. 11V-0. an-a' , cirvisioNs 0T11. 00101101. NI<000 MO 0.10 00.0 no ip, Oot MVO*40/0.44//0/ 0444444 no gLZOTTAINCES VS. 8 000.01011.*0140.0 0 MPS 1310/1/41 AIM 0;*We. 0.0rt. 01,0 =it It= /OS 14/04/04 ...4&==.44 •SaXT moo ft 010 alma on \We in•Ww. WO 00CIO/4104.141ESC00IC MOM 0 tome 914111141 no 1.4101.47 lo .....A 0 0401.04 0......0.0.0 5ES-4411-147-4402-01 Imo 4.1147 Page 42 Revision 0 May, 2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 27.0 FIT Procedure Formation Integrity Test (FIT) and Leak-Off Test (LOT) Procedures Procedure for FIT: 1. Drill 20' of new formation below the casing shoe (this does not include rat hole below the shoe). 2. Circulate the hole to establish a uniform mud density throughout the system. P/U into the shoe. 3. Close the blowout preventer(ram or annular). 4. Pump down the drill stem at 1/4 to 1/2 bpm. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) vs. drill pipe pressure until appropriate surface pressure is achieved for FIT at shoe. 6. Shut down at required surface pressure. Hold for a minimum 10 minutes or until the pressure stabilizes. Record time vs. pressure in 1-minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. The pre-determined surface pressure for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measures are required. Where required, the LOT is performed in the same fashion as the formation integrity test. Instead of stopping at a pre-determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with an FIT. Page 43 Revision 0 May, 2013 . •. Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 28.0 Saxon Rig 147 Choke Manifold Schematic 87.24 43.62 43.62 1842 -14.62 ; 14.62 18.43 •9,7r.... J'7., / 'j �' ats 0.19 ,f��.i A -0/9 0.19 - --",9„:9 ` ti: otN n um !!:A .. a a19 0.19 `r.►':' 019 � "'> 1 L ■ • • j 9 I°° �j c. llIIrC�ft[' g... Y I ' I )� +l- , 9.00 I '4!I i i .19' y I I ■�■� G �a19J � � s� a19-1 0.t9 ,. a o' © ...At,. �. .... 7.84 7A4 © r. 1-8.19 jai& lel III tel lel �!♦sr 38.01 1 10,44. tiL 11111111114 - n1 serial, 09 �� ` ` 0.19 ~�rm 4l ^ 14.82 �; �rj('r _ © � . 14,42 38.03 t �� 1.4 m ;' 1, �.:_ 82 1 are �� i t t mom m mMiiiiii a19 edk►i., a19 ..�..�. •LirV J 10.30 'j, �-'� C r 10.50 .I _. t c� !` •(50.1r,....\;‘, ,11 ..4) , _I f� tii - tattoo mow -0.19 1119/ 9D 0 , M2 CHORE MANUAL a -0.490.19 0.19 - 0.19 -0.19 OPERAIION PAL h+ L 8.3 -^ - 1 --14.82 - 14.62 14.62 14.62 631 43.82 43.62 � ,1 WV', - 87.24 FAW 6R1L r .w..�ZArgw+.«.rrrr.r.r.. {'x11+Vic' CAD `ac MP xrc ••••••� .....=...- 1.LAYOUT 98Th R CASKETS t -- .L.:. p li a""` .. `' 1>''?1 ` .. cjs'!S".f!'�!1`- yap aaac i=, '':n ar 8ao 4,4i`3x1..i' ✓ ..z_270248-53-1,-08 Page 44 Revision 0 May, 2013 S Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 29.0 Casing Design Information Calculation &Casing Design Factors Ninilchik Unit DATE: 5/14/2013 WELL:Paxton#5 FIELD: Paxton DESIGN BY:Luke Keller Design Criteria: Hole Size 9-7/8" Mud Density: 9.5 ppg Hole Size 6-3/4" Mud Density: 9.5 ppg Hole Size Mud Density: Drilling Mode MASP: 626 psi psi(see attached MASP determination&calculation) Production Mode MASP: 680 psi(see attached MASP determination&calculation) Collapse Calculation: Section Calculation 1,2 Normal gradient external stress(0.494 psi/ft)and the casing evacuated for the internal stress Casing Section Calculation/Specification 1 2 3 4 Casing OD 7.518" 4-1/2" Top(MD) 0 600 Top(TVD) 0 599 Bottom(MD) 800 2,409 Bottom(TVD) 799 2,371 Length 800 1,810 Weight(ppf) 29.7 12.6 Grade L-80 L-80 Connection BTC DWC HT Weight w/o Bouyancy Factor(lbs) 23,760 22,806 Tension at Top of Section(lbs) 23,760 22,806 Min strength Tension(1000 lbs) 683 192 Worst Case Safety Factor(Tension) 28.75 8.42 Collapse Pressure at bottom(Psi) 395 1,171 Collapse Resistance w/o tension(Psi) 4,790 7,500 Worst Case Safety Factor(Collapse) 12.14 6.40 MASP(psi) 626 680 Minimum Yield(psi) 6,890 8,430 Worst case safety factor(Burst) 11.01 12.40 Page 45 Revision 0 May, 2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 30.0 6-3/4" Hole Section MASP Maximum Anticipated Surface Pressure Calculation 6-3/4" Hole Section Ille Paxton#5 Ninilchik,Alaska MD TVD Planned Top: 800 799 Planned TD: 2,409' 2,371' Anticipated Formations and Pressures: Formation 1VD 1st Pressure Oil/Gas/Wet PPG Grad Lower Sterling A 927 278 Gas/Wet 5.8 0.300 Top Beluga Fm 1,327 579 Gas 8.4 0.436 Beluga 45 1,863 801 Gas 8.3 0.430 Beluga 50 2,059 885 Gas 8.3 0.430 Offset Well Mud Densities Well MW range Top(TVD) Bottom(TVD) Date Paxton#1 9-9.5 0 3,421 Feb-2004 Paxton#2 8.8-9.6 0 3,469 Jan-2008 Paxton#3 9-9.5 0 4,149 Mar-2010 Paxton#4 8.8-9.5 0 3,831 June-2010 Assumptions: 1. Maximum planned mud density for the 6-3/4"hole section is 9.5 ppg. 2. Calculations assume reservoirs contain 100%gas(worst case). 3. Calculations assume worst case event is complete evacuation of wellbore to gas. 4. Anticipated fracture gradient at 799'TVD= 17 ppg EMW Fracture Pressure at 7-5/8"shoe considering a full column of gas from shoe to surface: 799(ft)x 0.884(psi/ft)= 706 psi 706(psi)- (0.1(psi/ft)'799(ft)]. 626 psi MASP from pore pressure;entire wellbore evacuated to gas Beluga 50 2,059(ft)x 0.430(psi/ft)= 885 psi 885(psi)- [0.1(psi/ft)*2,059(ft))= 680 psi Summary: 1. MASP while drilling 6-3/4"production hole is governed by fracture pressure at the 7-5/8"casing shoe. 2. MASP during production mode is governed by SIBHP minus entire wellbore evacuated to gas from the Beluga 50 formation. Page 46 Revision 0 May, 2013 • 0 II Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 31.0 Directional Program (P3) ti: Schlumberger Hilcorp Paxton#5(P3)Proposal Geodetic Report (Def Plan) Report Date: August 22,2013.06:53 AM Survey/DLS Computation: Minimum Curvature I Lubinski Client: Hdcorp Energy Company Vertical Section Azimuth: 357874'(True North) FMld. Ninitchik Unit Vertical Section Origin: 0000 R.0.0008 Structure/Slot: Paxtonl Paxton 5 NAD27 TVD Reference Datum: KB Well. Paxton 5 TVD Reference Elevation: 171.3000 above MSL Borehole: Paxton 5 Ground Elevation: 148.3009 above MSL APIS: 501332061400 Magnetic Declination: 16907' Survey Name: Paxton 95(P3) Total Gravity Fold Strength: 1001.26941119n(9.80665 Eased) Survey Date: August 21,2013 Total Magneto Field Strength: 55222.743nT Tort/AHD/DDI/ERD Ratio: 32.790°1378435 ft/410216160 Magnetic Dip Angle: 73099' Coordinate Reference System: NAD27Aiaska State Plane,Zone 04.US Feet Declination Date: September 15,2013 Location Let I Long: N 60'045.35014^,W 151°36132.2519T Magnetic Declination Model: BOGM 2013 Location Grid 460 SIX: N 2230561446 BUS,E 206337.602 WS North Reference: True North CRS Grid Convergence Angle: -1.3948• Grid Convergence Used: 00000' Grid Scale Factor: 099999815 Total Corr Mag North->True North: 16.9072° Local Coord Referenced To: Well Head Exclusion Zone MD Incl Aon True MISS TVD VSEL NS EW TF DLS Directional Exclusion Zone Northing Easting comments10) (1 (•) (ft) (8) (8) (n) (B) (•) ("/1008)Difficulty Index Alert Arm (BUS) (BUS) 650- 0.00 0,00 35228 -111.30 000 0.00 0.00 0.00 352.28M 91/46 0.00 1690 223056745 206337.60 1000 2300 0.00 352.28 44830 23,00 000 0.00 0.00 352.28M 0.00 0.00 16.90 2230561,45 206337.60 100.00 0.00 352.28 -71.30 100.00 0.00 0.00 0.00 352.28M 0.00 0,00 1690 2230561.45 206337.60 200.00 0.00 352,28 28.70 210.00 0.00 000 0,00 35228M 0.00 0.00 1690 223056145 206337.60 300.00 0.00 352.28 128.70 300.00 0,00 0.00 0.00 352.28M 0.00 0.00 16.90 2230561.45 20633760 400.00 000 352.28 22810 400.00 0.00 000 0.00 352 2881 0.00 0.00 16,90 223056145 211633760 KOPCrv1/100 500.00 000 35228 328.70 50000 0.00 0.00 0.00 352.2681 0.00 ODD 1690 2230561.45 206337.60 Cry 2.751150 600.00 1.00 35228 428.69 599.99 0.67 0.86 -0,12 35228M 1,00 0.00 1600 2230862.31 206337,51 700.00 3.75 352.28 52860 699.90 4.99 4.97 -0.67 352.28M 2.75 1.27 13.58 2230566.43 206337.05 7491800.00 6.50 352.28 628.19 79949 13.88 1382 -1.87 352.280 2.75 1.96 11.31 223037531 206336.07 End Cry Cry 2751100 820.00 6.50 35228 648.06 81936 16.14 1607 -2,16 352.2881 0.00 2.02 11,31 2230077.56 20633582 900.00 870 352.28 727,35 898.65 2666 26.55 -3.60 HS 2.75 2.37 9.68 223058807 206334.65 Lower SrortineA 929.01 9.50 35228 75600 927.30 31,23 31.10 422 HS 2.75 2,48 9.14 2230592.63 206334.15 1000.00 1145 352.28 825.80 997,10 44.07 43.88 195 HS 275 2.71 802 2230605.46 206332.72 1100.00 14.20 35228 923,30 1094.60 66.16 65,88 -893 HS 2.75 2.98 7,07 2230627.52 206330.28 1200,00 16,95 352,28 101962 1190.92 92,88 92,48 -12.53 HS 2.75 3.20 7.12 223065420 206327.32 1300.00 1970 352.28 1114.54 1285.84 124.17 123.63 -16,75 HS 2.75 340 8,15 2230685.45 20632386 End Civ 1344.50 20,92 35228 1156.27 132757 139.55 13894 -1883 HS 2.75 3.47 8.85 2230700.81 206322.16 Ten Beano 1365,62 2092 352.28 1176,00 1347.30 147,05 146.42 49.84 HS 0.00 350 8.85 2230708.30 206321.33 140000 2092 352,28 1208.71 137941 15927 158.58 -21.49 HS 0.00 3.53 8.85 2230720.50 20631998 Cry 275/100 143085 20.92 352.28 1236.92 1408.22 170,24 169.50 -22.97 166.675 0.00 3.56 8.85 223073145 20631877 75(10.00 19.08 353.63 1301.90 147320 193.80 192.97 -25.88 165.415 2.75 366 746 2230754.99 20631643 1576.68 17.05 355.44 1374.80 1546.10 217.53 216.63 .28,17 763.695 2,75 3.74 Enter Alert 624 2230778.70 206314.72 1600.00 16.43 356.07 139713 156843 22424 223,33 -28.66 163.089 2.75 3.77 Alert 596 223078540 206314.38 1700.00 13.82 359.42 1493.66 166496 25032 24939 -29.75 159945 2.75 386 Alert 5.53 2230811.48 20631393 1789.48 11.54 356 1580.96 175226 26991 26901 -29.29 155.71R 2.75 3.93 Exit Alert 624 2230837.09 20631487 1800.00 11,28 427 159127 1762.57 271.98 27109 -29.14 155.11R 275 394 6.38 2230833.16 206315.07 End Cm 1862.36 9.75 8.54 1652.58 1823.88 283.24 282.39 -27.91 HS 2.75 3.00 7.39 2230844.43 206316.58 1900.00 9.75 8.54 1689.67 1860.97 289.50 288.70 -26.96 HS 000 399 7.39 2230650.71 206317.68 Beluga 45 190236 975 8.54 1692.00 188330 28589 289.09 -26.90 HS 0,00 3.99 739 2230851.17 20631775 Tweet 2000.00 9.75 8.54 178823 1959.53 366.14 305.45 -24.45 HS 0.00 401 739 223086740 20632660 2700.00 975 8.54 1886.78 2058.08 32279 322.20 -21.93 HS 000 404 7.39 223088408 21632352 Beluga 50 210123 9.75 9.54 1888.00 205930 32299 322.40 -21.90 HS 0.00 404 7.39 223088428 206323.56 2200.00 9.75 8.54 7985.34 215664 33943 338.94 -1942 HS 0.00 406 7,39 2230900.76 206326.44 2300.00 9.75 8,54 2083.69 2255.19 356.07 355.69 -16.90 HS 0.00 408 739 2230917.44 206329.36 2400.00 , 9.75 854 218245 2353.75 372.72 37244 -14.39 HS 0.00 4.70 7,39 2230934.13 20633228 4-1:2- 2417.80 + 9.75 8.54 219999 1 2371.29 375.68 37542 -13.94 0.00 4.70 7.39 223093709 20633280 TD Survey Error Model: ISCWSA Rev 0"'3.0 95.000%Confidence 2.7955 sigma Survey Program: MD From MD To EOU Freq Hole Size Casing Diameter Description IB) On 1B) lint (in) Survey Tool Type Borehole/Survey 0.000 800.500 1100.000 9.875 7,625 018_MW D-STD Paxton 5/Paxton 95(731 Drilling Office 2.6.1166.0 Ninilchik Unit\Paxton\Paxton 54Paxton 5\Paxton#5(P3) 8/22/20131:25 PM Page 1 of 2 Page 47 Revision 0 May, 2013 O • Paxton#5 Drilling & Completion Procedure Hilcorp Energy Company 32.0 Directional Plan View (P3) -300 0 300 600 900 RKB KBE KBE KBE 0 0 20' 20• 20• 300 300 600 a 600 Tarr 900 900 _.._.._.._.._.._o sg„ .._.. _.._.._..___.._.. _.._.._.._.._.._._.._.._.._.._.._.._.._.._ 0 0 M 1200 1200 cn uaK- 1500 c 1500 oar '• 1800 1800 _.._.._..r.._.._.._.._.._.._.._.._._.._.._.._.. 1364.a .._.._.._.._.._.._.._.._._.._.._.._.._.. .._.. .._ xron 1 xmn 2 2100 2100 2400 Baa^ `axion In F3) 2400 -300 0 300 600 900 Vertical Section(ft)Azim=357.8r Scale=1:300(ft) Origin=0 NI-S,0 E/-V Page 48 Revision 0 May, 2013 Paxton#5 Drilling & Completion Procedure Hilcorp Energy Company 33.0 Spider Plot Plan View (P3) .100 -50 0 50 100 150 Pima.145 ter a er`b. A{1�A 350 ltr r•.. 350 —sf a TO 300 try 250 250 Now,a tap betas A A rt : Auml to. sloe) 200 v 150 150 V V Kit 100 ... 100 A EM c,---.. Eat 50 50 rar it r to Li'MO - IWO EOP C.v Vila MR P^. -100 -50 0 50 100 150 «< W Scale=1.50{ft) E »> Page 49 Revision 0 May, 2013 • • II Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 34.0 Anti-Collision Summary Report Schlumberger II Paxton#5 (P3) Anti-Collision Summary Report Hiic 4twerU,y 4' Analysts Date-24hr Time: August 21,2013-16:33 Analysis Method: Normal Plane Client Hilcorp Energy Ct./teas): Reference Trajectory. Paxton a5(P3)(Oaf Plan) Field: Nimichik Unit Depth interval: Every 10 03 Measured Ocplh Oh Structure: Paxton Rule Set. 0661 AntiCc0lisro,Standard 5002 v5 115.2 Slot: Paxton 5 NAD27 Mm Pts: At:local minima indicated. Well: Paxton 5 Borehole'. Paxton 5 Offset Trajectories Summary Offset Selection Crise(la Wellhead ckstance scan Not performed. Snectmn filters. Deb-alive Surveys-Definitive Piens-Detirrtive surveys 6xctude definitive plans •All Non-Ose Surveys when n0 Det-Survey is se(in a borehole-All Noes-Del Plans when no Del-Plan is set uta boeetrole Offset Trajectory Separation Allow Sop. Conlroeting Reference Trajectory ,- � Risk Leval Alert Status mm Cl-Ct(11)1 MAS(ft)I EOU(ft) Den.(It) Fact. Rule MD(h) I ND(ft) Alert I Minor I Major Pada.1 tDef Survey) ?x cy0S,Sar'' 'aai' kto't" Pass 1 80 761 32 8' 77.51 47 951 35 15 MAS o 10.00(m) 453 78 453 76 I/4nFlx 8079 32811 77,45 47.98 3383 MAS=1000(m) 46967 46967 MMP7-0-EOU 108.69 32.61 170 64 75-r-mom MAO 10.00(m) 1122-93 1118.80 MoP10,51 111.28 32.81 103.06 7847 MOM MAS.10.00(m) 114343 113659 Me+P10Sr 1103 30 32 81 1092.31 1070 50 55 10 MAS:10.00(m) 241781 2371 30 TO Pa.0n240,4 Survey) , a` :fi..4a'4,14At Or A., ' h" : F:rxx I 01431 32.81 01.13 58621 89.61 1.1505.90.001m) 32062 32062 1dnPln 91.44 32 611 89.11 58 63 67.36 MAS x 10.00(m) 330 29 330 29 htiNPT.0.EOU 319 32 3261 3008 62 2%521 32 761 MAS=10 00 ON 1427.97 1405.54 MosP90-54' 79.162 32.81 714.91 763 02 46 95 MAS=10.00 On) 2417 81 2371 30 TO Paean 3(Od`Srm'o'il tilareatF 'v"' ... I 10661 32811 105861 7386 NA MAS=10000n) 030 030 Mr1PSs 51750 32 81 555.49 464 69 461 MAS=10.00(m) 134662 131965 19.49-0-513141.09 38,11 3115.35 3102.98 176'89 0511.50 241781 237130 1.194160-51 Pante 4Ore 3urvny)., „• vii..,�,''�t1'1,``"«1.�.�:;s„�r.��: .�:.,�• � '" `i:,::. Pass r.,_�_...�..._..,..a 1 133 06 32 81 132 0 1001. 7.7.-A htAS.10.03 ie9 0 33 030 Mates 139 IS 3281 131.82 1%.34 37767 510S=10.00(m) 12030 12030 MMP7-0-E01-1 212 01 3281 20755 179. 09 54 MAS=10.00(6) 52025 520.25 ht 7-0-51 231,62 32.81 226.71 198.81 58 84, MAS=1000(m) 566.750 56650 Mir,PtOSt 252.23 32.81 248.96 219.4 58611 h1AO-10.00(m) 614.38 814.38 MrPIOSF 336.30 32.81 328 51 302 57 51 MAO=10.001m) 792 18 791 70 Me,P4.0-5F 380.85 32 81 343.75 319.0` $7 5 MAS=10.09(m) 81854 817.91 Mr%-0S1 417.59 32.81 409.41 304.7 5799, MAS-10.00(m) 833.97 932.19 MrP1-0-5F 3363.35 39.27 3356 85 3344. - 132 53 OSF 1.50 2417.81 2371 30 fax4780-SF s'ea.11(0M 5..0 -44.4, • �,. _ �• >n^.`c7, "sem ;:;,.` i sm:. ", y5 t:'. PHaF; I won.' 3281 8065 .Room 291491 MAS=1000(m) 143 143 MaPs 610057 132.1 scars 5068.42 70.11 051 1.50 712.46 712 73 rdiNP1-0-EOU 6131.40 169,36 8017,94 5982.04 St 83 001 1.50 794.90 784 42 tAoP30'19DP 651648 352.09 8281 23 6184.9 MEM 051 t 50 1241.20 123020 7.1MP40-61 6536.50 359.44 629636 6177 -ifilallt OSP t 50 100239 166727 Mi,P1.0-51 6525,97 365.02 6282.11 6160.9_loom 0511.50 216178 211097 Munn-0-5F 6568.53 354.34 6331.79 6214.19 27.92 OSF 1.50 2417.81 2371.30 TD 14nIch6 Unit 1(Det Survey) :>syy4"g ' T" 9)W0c w4e.tv,tggRu�fie` ' i;.: Pam ,,‘;‘,;A,,,,,‘, ,: 6409,61 32 81 640'2.58 6376 80 1192 30 MAS=10 00 On) 000 0633 Surface 1 6409 611 159.08 6303 03 6250.53 6106 051 150 496 70 494.70 Ma dS-0101 6579.12 704.: 61088 5874,45 1403 0511.50 99962 996.73 MINPT-0-EOU 6753.06 914.52 6142 8 „• 0 11.09 051 1.50 117303 1165 07 MnR 0-ADP 088672 1021.68 6185 -i 111111==. 1009 0511.50 167649 1642.16 1.9nR-0•877P 6797.82 938.31j!;�58%521088 054 t.50 183233 1794.31 hlNPI-0-EOU 669222 1096.3 ;f,...ya 051150 2417.81 237.30 MnPM Page 50 Revision 0 May, 2013 • i Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company Schlumberger TRAVELING CYLINDER PLOT NoGo Region EOU's base. Client: Hilcorp Energy on:Oriented EOU N Corn.an ----- Dimension Well: Paxton 5 :Field: Ninilchik Unit NoGo Region Anti- Structure:Paxton jCollision rule used:Minor ;Date: Au t 21,2013 Risk-Separation Factor North 350 0 10 340 ,>. fRar 1 \ l 20 330 Illar``r 14) t Vert �� 0 x i '1X'1 35'.'. 5.:P 3104 ^,1:444" ,\C�.. !04• 50 100 j° � 4 ".xton 2 cam...1: ` 300 • 80 ,.0.0,; � ,`'s: � 60 °° 11110 , li 0;*41 21� 60 h i-0., T« \ 5� 70 • *i t}R' ,, ,3/4, „_ 28040 ' t.�o...`...�" Irdt'" 80 mai7 illikin'411111'4114 'dik*'' 270 sk - _. 90 44"t'iolir 0 ' II op 1 50*4fil ittivesi, Re 260 - 100 iiik* ill iv Illii, 104 ;.4, . 11110,10#4, 250 110 • 4 RIO 240 • 120 4 4P4r*iiitat 230 \ W' - 130 220 � 140 210 150 200 160 190 leo 170 Well Ticks Type: MD on Paxton#5(P3) Calculation Method: Normal Plane Ring Interval: 20.00 ft Azimuth Interval: 10.0 deg Scale: IN=%50.00 ft Page 51 Revision 0 May,2013 • • II Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 35.0 Spider Plot (NAD 27) (Governmental Sections) AP'359242 PAXTON 1 BHL I• //// S I / / \ I / / / I \\ t // C061505 // \ , / / //��!!�� \ 1 / '00 \\ 1 /// /// \ / / \ 1 / / I \\ I PAXTON 2 BH)' ADL384372 v I ,' vv 1 , A/ / INILCHIK2 NS t I ..,,/ INILCHIK2 L vI Paxton 5 v\ i 113011nm Itolc Location Paxton 5 Paxton 5 Surface Hole Location l ,iii of Productive Hori/on /f- J S001S014W S001S013W .—_ + � CO60385 — 1 -_. 29 . . T ADL384372 a; r, +t` fADL390105 I r ' 4 Legend i Paxton 5 SHL Paxton 5 TPH - - Paxton 5 BHL • Other Surface Hole Location — • Other Bottom Hole Location As\,,,,...,0* 41 ---Well Paths 24 L___.1 KPB Parcels allOil and Gas Unit Boundary .... _ , 01.000 2,000 Paxton 5 Feet Alaska State Plane Zone 4.NAD27 A Ilikvrp Alaxke,LU: Map Date:8/23/2013 Page 52 Revision 0 May,2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 36.0 Spider Plot (NAD 83) (Governmental Sections) AQ..359242 1 t , ' PAXTON 1 BHL I / x I / / \\ I CO61505/// \ I / ,, \ I 00 \\ ; Q \ I , , \\ 1 PAXTON 2 BHSk' ,..... ADL384372 \ 1 � / \\\ 1 ,/ / r r\/ JA.ONNE : L I(VILCHIK2 / • \ ,,— Paxton 5 v\ I1 ?Bottom Hole 1 boll' — I'u\hm i Paxton 5 i Surf I lole Location of Productive Horizon ---' I / r S001S014W • / , S001S013W L . C060385 w.. . __ _03 r ; ADC3f43�2 I II L19011054 4 I. 1 I _ E L.ill : , / Legend C Paxton 5 SHL _______ >� Paxton 5 TPH ` Paxton 5 BHL / Other Surface Hole Location — /% • Other Bottom Hole Location ———Well Paths 1 8 KPB Parcels V' Oil arid Gas Unit Boundary i i= ----- -.^ — , II 0 1,000 2,000 • Paxton 5 Feet Alaska State Plane Zone 4,NAD83 A Hilcorp Alaska,LIA: Map Date:8/23,2013 Page 53 Revision 0 May, 2013 • • II Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 37.0 Surface Plat (As Built) (NAD 27) / 4. oEc,o .,.ENo NOTES E22312862 16 i,12 1 �301II 1.BASIS OF ELEVATIONS IS NGS MONUMENT S 82 PID S82 2 MILE POST 124.2 OF THE STERLING HIGHWAY.THE ELEVATION OF 582 IS 237.12 FEET / PAXTON J SPENCER ESTATE (NGVD 29). BASIS OF HORIZONTAL COORDINATES ARE ALASKA STATE PLANE GOVT.LOT 1 SEC.13 NAD 83 ZONE 4 EPOCH 2003 DETERMINED BY AN NGS OPUS SOLUTION FROM T 01 S.R 14 W S.M.AK CORS BASE STATIONS-TLKA PID AH2494','ZAN1 PID DE9153-AND'GNAA PIO HOMER RECORDING AH2492'OBSERVED JUNE 5,2007 ON MCI S82 ECC 2'ALUM.CAP SET _ DISTRICT ADJACENT TO BM S82 N.2252517.780 E:1368533.525 ELEV:240.08 FEET. 64634 RED BLUFF DRIVE 2)NORTHEAST CORNER SEC.13 COORDINATES DETERMINED FROM DIRECT SURVEY TIE TO THE TO EXISTING BLM SECTION CORNER RECOVERED. J PROTRACTED SECTION CORNER VALUES NOT USED. �•� 1 3)CORPSCON VERSION 8.0.1 USED TO CONVERT NAD83 TO NAD27. / NORTH I f SCALE " ' ( ALDERS 200 ` ,/ I I 1 FEET / �PE` A[ /kOFgSl.9>� Ie / ` /i°"° • `� - te` %▪ 6i 0 -*;4911 *� f/ ot .STAN A. McLANE , � •"$ 'I �,0,- 21eg3� ' r Iti1w� ` Z It s'. / -,,• i i . _h410 y s i 1 1 0 150:Ne JR"', ';'.,v,' ..7.1:' 1/ I/ 7/ 0 ea f :., ---- / 1, 2990'FEL�s, If/i % PAXTONNO. 5WELL i " f I .� '/ `mut.oul �f i AX ON •5 EL / ;4..i..' / �/ ! / CONDUCTOR AS-BUILT / ,' / NAD27 ASP ZONE 4 J (f. i 4g,i WATER i I : 2230561.446 I 'l i / \ -- ''`/ J v/AT: : 206337.602 f N60°05'45.350" 1 1 i Y u21.217;1.,..... a ON: W151°36'32.252" I. 11 , //! / CFV=148.3'NGVD29 \ / ` �/ ECTION 13 TIS,R14W,AKi / / \ Y/990'FEL,801'FHL, i PAXTON #5 WELL AS-BUILT SURFACE LOCATION (NAD27) LOCATION: SECTION 13, TOWNSHIP 1 SOUTH, ENGINEERING-TESTING RANGE 14 WEST, SEWARD MERIDIAN ALASKA SURVEYING-MAPPING Ililt-orp Alaska.IAA: P.O.BOX 468 \M L. SOVOICE:LIDT(907)ONA,AK283.99669-4218 JOB NO 133012 FAX:(907)283-3265 DWG. ConwllingInc WWW.MCLANECG.COM 133012 Date: 8/21/2013 FIGURE: 1 Page 54 Revision 0 May, 2013 0 • Paxton #5 111 Drilling & Completion Procedure Hilcorp Energy Company 38.0 Surface Plat (As Built) (NAD 83) SECTION LINE NTS - N.22310,t, E.13491E51,13 1,3 NOTES 1.BASIS OF ELEVATIONS IS NGS MONUMENT S 82 PIO TT0583 AT MILE POST PAXTON J SPENCER ESTATE 124.2 OF THE STERLING HIGHWAY.THE ELEVATION OF S82 IS 237.12 FEET GOVT.LOT 1 SEC.13 (NGVO 29). BASIS OF HORIZONTAL COORDINATES ARE ALASKA STATE PLANE T 01 S.R 14 W S.M.AK NAD 83 ZONE 4 EPOCH 2003 DETERMINED BY AN NGS OPUS SOLUTION FROM HOMER RECORDING CORS BASE STATIONS'TLKA PIO AH2494",'ZAN1 PIO DE9153`AND"GNAA PID DISTRICT AH2492"OBSERVED JUNE 5,2007 ON MCI S82 ECC 2 ALUM.CAP SET _ 64634 RED BLUFF DRIVE ((',',i ADJACENT TO BM S82 N:2252517.780 E:1368533.525 ELEV:240.08 FEET. ,...:::.----..............=, J j' 2)NORTHEAST CORNER SEC.13 COORDINATES DETERMINED FROM DIRECT 1( I SURVEY TIE TO THE TO EXISTING BLM SECTION CORNER RECOVERED. G. /J f PROTRACTED SECTION CORNER VALUES NOT USED. /� NORTH i ' 1 1.itachl SCALE tel`.I ft _ 4 0 100 200 �� -#' ..,.. --_- FEET I , , Q -,.OFA4gIIs., /I. �1' i jt. STAN A.McLANE _� lif ��I: .�i/1 21427-51 ///Vie/ / ��t ``� .70'3/" z J��p z sII EnI C ` S• 7_ (` . W yC2 to / li" Ja -u P LIMITS CV:. , 6//' / ,i" PAXTON PAD iT A .7/ J J JC/ °,,, S Pi; ; . y i/ „¢�J / • ♦Y4EA. J�v:.AT 0 ntTIX1® / �E,. J J J, di A.TD; - Y ®. z / I•:. ,—.. / /14, 2990'FEL r� h / / PAXTON NO.5 WELL, '�, if rP.E o«.N/j/ � /" / /"AE f J / 'AXT�N#5 E L I { r, j J J / CONDUCTOR AS-BUILT s i J AD83 ASP ZONE 4 ,, / fit° ,.` L" i 1 /„ N: 2230320.329 ,.. ,i r ///: / E: 1346357.069 ) 1 / 1 LAT:N60°05'43.206" r'if """'• .' CHANNEL a,<,„.`.. \., ON: W151°36'40.209" 1 % �/ / ELEV=148.3'NGVD29 / ggtvm 1 / SECTION 13 TIS,R14W,AK 1 �` --- / ,. // x / 2990'FEL 801'FNL PAXTON #5 WELL AS-BUILT SURFACE LOCATION (NAD83) LOCATION:SECTION 13, TOWNSHIP 1 SOUTH, / , ENGINEERING-TESTING SURVEYING-MAPPING RANGE 14 WEST,SEWARD MERIDIAN ALASKA Ilile orp Alo.kn,1.l.(: P.O.BOX K SOLDOTNA,AK..99669 JOB NO. 133012 VOICE:(907)283-4218 FAX:(907)283-3265 DWG. Con.sulking Inc WWW.MCLANECG.COM 133012 Date:8/21/2013 FIGURE: 1 Page 55 Revision 0 May,2013 0 • TRANSMITTAL LETTER CHECKLIST WELL NAME: + L�—?�-T�7-( ((e. _ - _.,L_;.Ssc.�c PTD: 2/ 5 �'7S f,, Development _Service / Exploratory Stratigraphic Test Non-Conventional FIELD: A /<Z! lC 1., � POOL: � ' 6 r�, ti v /<�/ -C t Check Box for Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI The permit is for a new wellbore segment of existing well Permit LATERAL No. , API No. 50- - - - . (If last two digits Production should continue to be reported as a function of the original in API number are API number stated above. between 60-69) In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well Pilot Hole name ( PH) and API number (50- - - - ) from records, data and logs acquired for well (name on permit) . 5 C� f rud i.',c-� -- T_.1 4=C=f- The permit is proved subject to full compliance with 20 AAC 25.055. Approval to s contingent upon issuance of a conservation j Spacing Exception order appraing a spacing exception. (Company Name) Operator assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the AOGCC must be in no greater Dry Ditch Sample than 30' sample intervals from below the permafrost or from where samples are first caught and 10'sample intervals through target zones. Please note the following special condition of this permit: production or production testing of coal bed methane is not allowed for Non-Conventional (name of well) until after (Company Name) has designed and Well implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the AOGCC to obtain advance approval of such water well testing program. Regulation 20 AAC 25.071(a)authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by (Company Name) in the attached application,the following well logs are - Well Logging also required for thiswell:1' J/ -A-c64! i . Requirements �ceiusca a ��y, =n*.� 16� cr i 4a .:044><--le,/� .i. -5 id► ' Per Statute AS 31.05.030(d)(2)(B) and Regulation 0 AAC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. 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(LLi) c a. -I O a coLL LL Q Q w Q V Q • 0..\�� 1��,sv THE STATE Alaska Oil and Gas 0,' °ALASKA Conservation Commission - GOVERNOR SEAN PARNELL 333 West Seventh Avenue OF �+mr; Q- Anchorage, Alaska 99501-3572 ALAS'' Main: 907.279.1433 Fax: 907.276.7542 Luke Keller Drilling Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Re: Ninilchik Field, Sterling Undefined Gas Pool, Paxton#5 Hilcorp Alaska, LLC Permit No: 213-075 Surface Location: 798' FNL, 3019' FEL, SEC. 13, T1S, R14W, SM Bottomhole Location: 336' FNL, 2274' FWL, SEC. 13, T1S, R14W, SM Dear Mr. Keller: Enclosed is the approved application for permit to drill the above referenced exploration well. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to produce / inject is contingent upon issuance of a conservation order approving a spacing exception. Hilcorp Alaska, LLC assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the AOGCC 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. Regulation 20 AAC 25.071(a) authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by Hilcorp Alaska, LLC in the attached application, the following well logs are also required for this well: 1. Mudlog from base of conductor to T.D. 2. Cased hole gamma ray log from base conductor to 7-5/8" casing shoe. 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 AOGCC 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 AOGCC's internal use. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC 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 AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, aie4 Cathy P. oerster Chair Si- DATED this 4' day of June, 2013. I STATE OF ALASKA ALA OIL AND GAS CONSERVATION COMMON MAY 21 2013 PERMIT TO DRILL ^(`� 20 AAC 25.005 AnrCC la.Type of Work: 1 b. Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone E 1 c.Specify if well is proposed for: Drill 0- Lateral ❑ Stratigraphic Test IT Development-Ga Service-Supply ❑ Multiple Zone ❑ Coalbed Gas ❑ Gas Hydrates ❑ Redritl❑ Reentry ❑ Exploratory V Service- WAG LJ Service-Disp ❑ Geothermal ❑ Shale Gas ❑ 2.Operator Name: ( 5. Bond: Blanket 0 Single Well ❑ 11.Well Name and Number: Hilcorp Alaska, LLC S Bond No.o j ay zy(2235244 Paxton#5 3.Address: 6.Proposed Depth: • 12. Field/Pool(s): 3800 Centerpoint Drive,Suite 100,Anchorage,AK,99503 MD: 2,409' TVD: 2,371' Undefined 4a. Location of Well(Governmental Section): 7. Property Designation(Lease Number): New Pool-Sterling Reservoir Surface: 798'FNL,3019'FEL,Sec 13,T1S, R14W,SM,AK ' Fee Lease(Ninilchik Unit) - Top of Productive Horizon: 8. Land Use Permit: 13.Approximate Spud Date: 656'FNL,2265'FWL,Sec 13,T1S, R14W,SM,AK Surface Agreement w/parcel fee owner " 8/22/2013 Total Depth: 9.Acres in Property: 14.Distance to Nearest Property: 336'FNL,2274'FWL,Sec 13,T1S,R14W,SM,AK 33.2 acres 372.5 FEL 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10. KB Elevation above MSL: 166 feet 15.Distance to Nearest Well Open Surface: x-206316.5 - y-2230587 - Zone-4 GL Elevation above MSL: 148 feet to Same Pool: N/A 16. Deviated wells: Kickoff depth: 500 feet 17. Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: 15.71 degrees Downhole: 885 psig - !Surface: 626 psig 18.Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity,c.f.or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Conductor 10-3/4" 45.5 L-80 Weld 80 0 0 80 80 Drld into place 9-7/8" 7-5/8" 29.7# L-80 BTC 800 0 0 800 799 76 sx 12ppg lead/110 sx 15.4 ppg tail 6-3/4" 4-1/2" 12.6# L-80 DWC/C HT 1810 600 599 2409 2371 270 sx 12.5 ppg LiteCRETE 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugs(measured): Effect.Depth MD(ft): Effect. Depth TVD(ft): Junk(measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): 20. Attachments: Property Plat 0 BOP Sketch 0 Drilling Program 0 Time v. Depth Plot 0 Shallow Hazard Analysis Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program 0 20 AAC 25.050 requirements0 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Email Printed Name Luke Keller Title Drilling Engineer Signature // Phone (907)777-8395 Date 5/17/2013 Commission Use Only Permit to Drill -'API Number: Permit Approval _ 1 i • , See cover letter for other Number: .2-1- L-'�7� /50-` r 2.0(„14-6.0.-a--, Date: '�.- + requirements. Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coalbed methane,gas hydrates,or gas contained in shales: ElOther: 1 3_so 0 /03 db I' I feuSamples req'd: Yes D No❑ Mud log req'd:Yes Q No❑ Q_ _ -T-Z-5-1-- Spacing f- H2S measures: Yes❑ No Er Directional svy req'd:Yes 2 No❑ Z. oo s h n,c✓�'� 5 Spacing exception req'd: Yes a No[i] Inclination-only svy req'd:Yes ID No ri ,I- /Z" �,-✓ar � r_._ Zc) A� ZS on 3 S-(c)(!) CA) { fr l0 0 t�CiY Cil � re.6 tirJ-Gce. Ar 14 7 r $b P �esfi �-Qy APPROVED BY / Approved by `` P COMMISSIONER THE COMMISSIONQ Date:(. -u / 6, -6, 13 Submit Form and Form 10-401(Revised 10/2012) ThisOrrRsIGftrk4 TI htom the date of approval(20 AA J25.005(g)) Attachments in Duplicate `' UK \v' H G D • MAY 21 2013 Hilcorp Luke Keller Hilcorp Alaska, LLC AOGCC Energy Company Drilling Engineer P.O. Box 244027 Anchorage, AK 99524-4027 Tel 907 777 8385 5/21/2013 Email Ikeller@hilcorp.com Cathy Foerster, Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue Anchorage, Alaska 99501 Re: Paxton#5 Dear Commissioner, Enclosed for review and approval is the application for the Permit to Drill the Paxton#5 exploration gas well. 7 Paxton #5 is a grass roots exploration gas well to be drilled within the Ninilchik Unit from the Paxton pad. The well is a 2,409" MD / 2,371' TVD shallow pool exploratory well on the crest of the Paxton structural closure. It is above the Paxton PA, is above all currently productive reservoirs and hence is classified as an exploratory well. It will test numerous Upper Beluga and Lower Sterling objectives logged in the Paxton 3 and Paxton 4 wells. The base plan is a slightly deviated "S"turn wellbore reaching a maximum inclination of 15.7 deg and a 350'vertical separation. Drilling operations are expected to commence approximately August 22nd, 2013. The Saxon Rig#147 will be used to drill and complete the wellbore. The well will be perforated rig-less. If successful, Paxton#5 will be the first production gas well in the Upper Beluga/Lower Sterling reservoirs within the Ninilchik Unit Pursuant to 20 AAC 25.055(a)(2), a spacing exception will be required to test and for regular production because the ownership differs within a 1500' radius of the well's proposed bottom hole location and/or take-point. A separate spacing exception application accompanies this permit to drill. Pursuant to 20 AAC 25.005(c) &(d), the following is included: 1. Plat identifying the property on which the well will be drilled. 2. Diagram &description of blowout prevention equipment. 3. Information on drilling hazards. a. MASP calculations are attached per 20 AAC 25.005(c)(4)(A) b. Potential target reservoirs and their predicted pore pressures are indicated in attached Drilling Program 4. Formation integrity test procedure. 5. Planned casing &cement program (Drilling Program) 6. Drilling fluid program (Drilling Program) 7. Tabulation of predicted depths with equivalent formation pressures. 8. Requirements of 20 AAC 25.025 have been met. a. Blanket state wide bond issued: 2235244 9. Copy of Drilling Program is attached. 10. General description of waste disposal. Operator does not wish to request authorization under 20 AAC 25.080 for an annular disposal operation in the well. a. Drilling waste (cuttings and water based drilling fluids) will be hauled to the Kenai Gas Field G&I facility. At the G&I facility, cuttings will be tested, and either injected or slotted for beneficial reuse. Hilcorp Alaska, LLC Page 1 of 2 • i 11. Requirements of 20 AAC 25.050(b) have been met. a. Plat showing path of proposed wellbore including all adjacent wellbores within 200' is attached. b. All wellbores within 200' of proposed wellbore are owned by Hilcorp. If you have any questions, please don't hesitate to contact myself at 777-8395 or Paul Mazzolini at 777-8369. For questions regarding the proposed spacing exception application, please contact David Duffy at 777-7418. Sincerely, 2/Z Luke Keller Drilling Engineer Hilcorp Alaska, LLC Page 2 of 2 • Hilcorp Alaska, LLC Paxton #5 Drilling & Completion Program Ninilchik, AK Revision 0 May 14th, 2013 111 • • Paxton #5 Hilcorp Drilling Procedure Energy Company Contents 1.0 Well Summary 2 2.0 Management of Change Information 3 3.0 Tubular Program: 4 4.0 Drill Pipe Information: 4 5.0 Internal Reporting Requirements 5 6.0 Planned Wellbore Schematic 6 7.0 Drilling/Completion Summary 7 8.0 Mandatory Regulatory Compliance/Notifications 8 9.0 R/U and Preparatory Work 10 10.0 N/U 11"Diverter System 11 11.0 Drill 9-7/8"Hole Section 12 12.0 Run 7-5/8"Surface Casing 15 13.0 Cement 7-5/8"Surface Casing 18 14.0 BOP N/U and Test 21 15.0 Drill 6-3/4"Hole Section 22 16.0 Run 4-1/2"Production Liner 25 17.0 Cement 4-1/2"Production Liner 28 18.0 Wellbore Clean Up&Displacement 32 19.0 Run 4-1/2"Tieback String 32 20.0 Install Production Tree 34 21.0 BOP Schematic 35 22.0 Wellhead Schematic 36 23.0 Days Vs Depth 37 24.0 Geo-Prog 38 25.0 Anticipated Drilling Hazards 39 26.0 Rig Layout 41 27.0 FIT Procedure 42 28.0 Saxon Rig 147 Choke Manifold Schematic 43 29.0 Casing Design Information 44 30.0 6-3/4"Hole Section MASP 45 31.0 Directional Program(P2) 46 32.0 Directional Plan View(P2) 47 33.0 Spider Plot Plan View(P2) 48 34.0 Anti-Collision Summary Report 49 35.0 Spider Plot(NAD 27)(Governmental Sections) 51 36.0 Spider Plot(NAD 83)(Governmental Sections) 52 37.0 Surface Plat(As Built)(NAD 27) 53 38.0 Surface Plat(As Built)(NAD 83) 54 • Paxton #5 Drilling & Completion Procedure Hilcorp &a'Company 1.0 Well Summary Well Paxton#5 Pad Paxton Planned Completion Type 4-1/2"IBT production tubing Target Reservoir(s) Sterling A,Beluga Planned Well TD,MD/TVD 2,409' MD/2,371' TVD PBTD,MD/TVD 2,300' MD/2,265' TVD Surface Location(Governmental) 798' FNL, 3019' FEL, Sec 13,T1S,R14W, SM,AK Surface Location (NAD 27 ASP Zone 4) X=206316.5,Y=2230587 Surface Location(NAD 83) X= 1346336,Y=2230345.99 Top of Productive Horizon (Governmental) 656'FNL,2265'FWL, Sec 13, T1S,R14W, SM, AK TPH Location(NAD 27) X=206423,Y=2230591 TPH Location(NAD 83) X= 1346335.9,Y=2230376 BHL(Governmental) 336'FNL,2274'FWL, Sec 13, T1S,R14W, SM,AK BHL(NAD 27) X=207323.5,Y=2230624.7 BHL(NAD 83) X= 1346352.2,Y=2230695.99 AFE Number 1311564 AFE Drilling Days 23 days AFE Completion Days 5 days AFE Drilling Amount $3.81 MM AFE Completion Amount $1.05 MM Work String 4-1/2" S-135 16.6#CDS 40(Rental f/Saxon) RKB—GL 18' Ground Elevation 148 AMSL(Geo-Prog) BOP Equipment 11" 5M T3-Energy(Model 7082) 11" 5M T3-Energy Double Ram(Model 6011i) 11" 5M T3-Energy Single Ram(Model 60111) Page 2 Revision 0 May, 2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 2.0 Management of Change Information Hilcorp Alaska, LLC EnmgyHili Changes to Approved Permit to Drill Date: Feb 28, 2013 Subject Changes to Approved Permit to Drill for Paxton #5 File#: Paxton #5 Drilling and Completion Program Any modifications to Paxton#5 Drilling&Completion Program will be documented and approved below_ Changes to an approved APD will be communicated to the AOGCC &BLM. : Section Page Date Procedure Change Approved Approved BY BY Approval: Drilling Manager Date Prepared: Drilling Engineer Date Page 3 Revision 0 May,2013 • • 111 Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 3.0 Tubular Program: Hole OD (in) ID(in) Drift Conn Wt Grade Conn Burst Collapse Tension Section (in) OD(in) (#/ft) (psi) (psi) (k-lbs) Cond 10-3/4" 9.95" 9.875" 11.75" 45.5 L-80 BTC 5210 2480 1040 9-7/8" 7-5/8" 6.875" 6.75" 8.5" 29.7 L-80 BTC 6890/ 4790 683 6-3/4" 4-1/2" 3.918 3.833 4.729 12.6 L-80 DWCHT 8430 " 7500 192 4.0 Drill Pipe Information: Hole OD (in) ID (in) TJ ID TJ OD Wt Grade Conn Burst Collapse Tension Section (in) (in) (#/ft) _ (psi) (psi) (k-lbs)_ All 4.5 3.826 2.6875 5.25 16.6 S-135 CDS40 16,176 10,959 468 All casing will be new, PSL 1 (100% mill inspected, 10% inspection upon delivery to TSA in Fairbanks). Page 4 Revision 0 May, 2013 Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 5.0 Internal Reporting Requirements 5.1 Fill out daily drilling report and cost report on Wellez. i. Report covers operations from 6am to 6am ii. Click on one of the tabs at the top to save data entered. If you click on one of the tabs to the left of the data entry area—this will not save the data entered, and will navigate to another data entry tab. iii. Ensure time entry adds up to 24 hours total. iv. Try to capture any out of scope work as NPT. This helps later on when we pull end of well reports. 5.2 Afternoon Updates i. Submit a short operations update each work day to pmazzolini@hilcorp.com and lkeller@hilcorp.com 5.3 5am Weekend Update i. Submit a short operations update each weekend and holiday to whoever is assigned weekend or vacation duty. ii. Copy pmazzolini@hilcorp.com and lkeller@hilcorp.com 5.4 EHS Incident Reporting i. Notify EHS field coordinator. 1. Mark Tornai: 0: 907-748-3299 C: 907-283-1372 2. Spills: Kate Kaufman: 0:907-777-8329 C:907-244-8292 ii. Notify Drlg Manager 1. Paul Mazzolini: 0: 907-777-8369 C: 907-317-1275 iii. Submit Hilcorp Incident report to contacts above within 24 hrs 5.5 Casing Tally i. Send final"As-Run"Casing tally to lkeller@hilcorp.com 5.6 Casing and Cmt report i. Send casing and cement report for each string of casing to lkeller@hilcorp.com 5.7 Switch to"Completion"report when production liner starts in the hole. Page 5 Revision 0 May, 2013 • • II Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 6.0 Planned Wellbore Schematic ! Planned Ia11:,el..`EC' o l R � gTubing ''''''*71 "F _' _ ✓ Typ a._ : T: 5 Conduct** 15-3 4' Drn'en t =5.5 L-9=. _35` Surf I Set Depth r7-5:_ 5 rf.Cs; 29.' L•EIC E_.._ss E._"5 Surf tt_. -__firer 12.. L-EIC 5;1E ..,.- c1a4 G = 1 4 L-1I tti I 12.. I L 9 Tu fir_ I° 3313' I I I I I IE:';ELFr DETAIL I 1 N . Cr=pt- _ _: EE' 1 3.e. 5G55i , , , 2 59CCI;emoo!injector titan tire i I I 5 E_.i.' MIDI Liner top packer I f.14' f5uaint s e al ant), PERFORATION DETAIL C1PLANNED) i� Z:; :_ Est-r,(MD TapITier:P Eft,'"T _=- ._._ ps ewer Ste rine •z. >; * A Top be lugs fill 13=" it Beluga 45 1.2E5 K1?.S4a = 3 Beluga 5. 2:53 l' .t 4FtT k tI ra N r i 4 i accoo ,-t_: 10 a rn=2,4O9'Mt 2,371'rim Page 6 Revision 0 May, 2013 i • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 7.0 Drilling / Completion Summary Paxton#5 is a grass roots exploration gas well to be drilled off the Paxton pad. Paxton#5 is a shallow pool exploratory well on the crest of the Paxton structural closure. It is above the Paxton PA,is above all currently productive reservoirs and hence is classified as an exploratory well. It will test numerous Upper Beluga and Lower Sterling objectives logged in the Paxton 3 and Paxton 4 wells. The base plan is a slightly deviated wellbore reaching a maximum inclination of 15.7 deg and a 350' vertical separation. Drilling operations are expected to commence approximately August 22nd,2013. The Saxon Rig #147 will be used to drill and complete the wellbore. The Saxon Rig #147 is a mechanical telescoping double rated for approx 11,800' MD. The production liner will be perforated after the rig has been RDMO. Surface casing will be run to 800' MD and cemented to surface to ensure protection of FW resources. '/ ,/ Cement returns to surface will confirm TOC at surface. If cmt returns to surface are not observed, a Temp log will be run between 6 — 12 hrs after CIP to determine TOC. Necessary remedial action will then be discussed with AOGCC authorities. --> idaz /3.001 All waste & mud generated while drilling Paxton#5 will be hauled to the Kenai Gas Field G&I facility and slated for beneficial re-use or injected into the waste disposal well. General sequence of operations: 1. MOB Saxon Rig#147 to Paxton#5. 2. N/U and function test 11" diverter. 3. Drill 9-7/8" hole to 800' MD. Run and cmt 7-5/8" surface casing. 4. N/D diverter,N/U &test 11"x 5M T3-Energy BOP. 5. Drill 6-3/4"hole section to 2,409' MD. Run wireline logs. Run and cmt 4-1/2"production liner. 6. TIH w/clean out assy, clean out liner to landing collar. Displace mud to 6% KC1 filtered completion fluid. 7. TOH, LDDP 8. N/D BOP,N/U temp abandonment cap, RDMO 9. Swab and perforate well. Page 7 Revision 0 May, 2013 • • Paxton#5 Drilling & Completion Procedure Hilcorp Energy COY 8.0 Mandatory Regulatory Compliance / Notifications Regulatory Compliance Ensure that our drilling and completion operations comply with the below AOGCC regulations. If additional clarity or guidance is required on how to comply with a specific regulation, do not hesitate to contact the Anchorage Drilling Team. • BOPs shall be tested at (2)week intervals during the drilling and completion of Paxton #5. Ensure to provide AOGCC 24 hrs notice prior to testing BOPs. • The initial test of BOP equipment will be to 250/2500 psi & subsequent tests of the BOP equipment will be to 250/2500 psi for 5/5 min(annular to 50% rated WP, 2500 psi on the high test for initial and subsequent tests). Confirm that these test pressures match those specified on the APD. • If the BOP is used to shut in on the well in a well control situation, we must test all BOP components utilized for well control prior to the next trip into the wellbore. This pressure test will be charted same as the 14 day BOP test. • All AOGCC regulations within 20 AAC 25.033 "Primary well control for drilling: drilling fluid program and drilling fluid system" • All AOGCC regulations within 20 AAC 25.035 "Secondary well control for primary drilling and completion: blowout prevention equipment and diverter requirements". • Ensure the AOGCC approved drilling permit is posted on the rig floor and in Co Man office. Exceptions Required: • Hilcorp respectfully requests a waiver to regulation 20 AAC 25.035(c)(1)(A) "the diverter system must consist of... a diverter vent line with a diameter of at least 16 inches, unless a smaller diameter is approved by the commission to account for smaller hole size". The surface hole of Paxton#5 will be 9-7/8" and Hilcorp respectfully requests the use of a 12" diverter line. Page 8 Revision 0 May, 2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company Summary of BOP Equipment and Test Requirements Hole Section Equipment Test Pressure(psi) 9-7/8" • 11"annular used as diverter Function test only • 11"x 5M T3-Energy Annular BOP 3S ' • 11"x 5M T3-Energy Double Ram Initial Test:25045110' o Blind ram in btm cavity (Annular 2500 psi) 6-3/4" • Mud cross 1 (•I3 • 11"x 5M T3-Energy Single Ram Subsequent Tests: • 3-1/8"x 2-1/16"5M Choke Manifold 250/2360 3 611.3 • Standpipe,floor valves,etc (Annular 2500 psi) • Primary closing unit: 1 ea.—"Control Technologies", 5 station, 3000 psi, 120-gallon accumulator unit, with a remote control panel in the doghouse. • Primary closing hydraulic pressure is provided by an electrically driven triplex pump. Secondary back-up is an air pump, and tertiary emergency pressure is provided by bottled nitrogen. Required AOGCC Notifications: • Well control event (BOPS utilized to shut in the well to control influx of formation fluids). • 24 hours notice prior to spud. • 24 hours notice prior to testing BOPs. • 24 hours notice prior to casing running & cement operations. • Any other notifications required in APD. Regulatory Contact Information: AOGCC Jim Regg/AOGCC Inspector/(0): 907-793-1236/Email: jim.regg@alaska.gov Guy Schwartz/Petroleum Engineer/(0): 907-793-1226/(C): 907-276-7542/Email: guy.schwartz@alaska.gov Victoria Ferguson/Petroleum Engineer/(0): 907-793-1247/Email:Victoria.ferguson@alaska.gov Primary Contact for Opportunity to witness: AOGCC.Inspectors@alaska.gov Test/Inspection notification standardization format: http://doa.alaska.gov/ogc/forms/TestWitnessNotif.html Notification/Emergency Phone: 907-793-1236(During normal Business Hours) Notification/Emergency Phone: 907-659-2714 (Outside normal Business Hours) Page 9 Revision 0 May, 2013 • • Paxton #5 14Drilling & Completion Procedure Hilcorp Dungy Company 9.0 R/U and Preparatory Work 9.1 Set 10-3/4" conductor at 80' below ground level. 9.2 Dig out and set cellar 10' below ground level. Ensure cellar sticks up 3 —4 inches above ground level. 9.3 Install slip-on 11"x 5M wellhead. Install both"A" and"B" sections. Cut conductor so that top of"B" section flange is 2' below ground level. Ensure to orient wellhead so that tree will line up with flowline later. 9.4 Install water meter on water well. We will have to track usage. 9.5 Level pad and ensure enough room for layout of rig footprint and R/U. 9.6 Layout Herculite on pad to extend beyond footprint of rig. 9.7 R/U Saxon Rig 147, spot service company shacks, spot& R/U company man&toolpusher offices. 9.8 After rig equipment has been spotted, R/U handi-berm containment system around footprint of rig. 9.9 Set up communications systems. R/U service company shacks. 9.10 Mix mud for 9-7/8"hole section. 9.11 Set test Plug in wellhead prior to N/U diverter to ensure nothing is dropped into the wellbore. 9.12 Install 5" liners in mud pumps. We will pump at 500—550 gpm. • TSM 1000 mud pumps are rated at 4250 psi (85%) /275 gpm(100%) with 5" liners. Page 10 Revision 0 May, 2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 10.0 N/U 11" Diverter System 10.1 Install 11" diverter system. Stack up from Top Down: • Saxon flow nipple • 11"x 5M T3-Energy annular BOP • 11"x 5M spacer spools as needed • 13-5/8"x 5M diverter"T" with 12" diverter line outlet. • 11" x 5M spacer spools as needed • Wellhead 10.2 Install 12" diverter line and knife gate. Diverter line orientation should be as shown on below diagram. 10.3 Function test diverter. Knife gate should open before annular closes and should be on the same circuit to avoid unintentional shut in of the well. 10.4 Se long wear bushing in wellhead. , 1 gote Drilling pax#5 �`' // / rtpE Also.* ELE\ '.:488' SUPPORT � A I 0 TYP.) ha t iP wl -d I IONS 1$ I ® / .I.,-y ��` • PAXTON#3 WELL i t 1 a N 223040708 t t 1348419.18 / 11grt, 400.1 / y2 __1.. 14920 / i ° 'l // GGRIDRID N ,, `/w� -. O 2aWELL 01 // ELEV +� P fl . `�/! E:1518+39.82 / -< ,41 / ray ft 'w /it,/ ,i // / 4. 44; r pi / / .; /4 i / / ` PAXTON#1 WELLtr INA CSP / / F/ `�a! 04.7 N`2230337.38 / " E- 1346441 43 / F'/ E1.EV:14829' / / i / / // et° �9 ..str // / / 1I � as TION' / // : �, .PRESSURE / I � ERAL GAS / M elft'. - LINE TOKKP.L, / MAIN I:/ / GATE '. t p 4 1' / / / '� WATER / 241 \ WELL / J HOUSE // 0. // ( '' 7 Page 11 Revision 0 May,2013 • . Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 11.0 Drill 9-7/8" Hole Section 11.1 Pick up 9-7/8" directional assy: • Ensure BHA Components have been inspected previously. • Drift & caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. • Ensure TF offset is measured accurately and entered correctly into the MWD software. • Confirm that the bit is dressed with 3 x 13's, 1 x 24 CJ. • Motor AKO should be set at 1.18 deg. 11.2 Primary 9-7/8"bit will be the Smith XR+ (IADC 117). Two of these are available at the OSK dock. SMITH BITS Xplorer Expanded A Schlumberger Company 9-7/8" XR+ Milled Tooth (250.525 MM)10:0050111100 FEA111RES ER:7741 IADC:117 r *The Gemit ,peal:;,stem cont:of a primary ceal ` which protect the bearing. and a secondary seal that protects the primary seal Tlx:dual seal ayotem mil IINW—1 perform reliably for extended periods of time in high RPM, '' 7 heavier SW©B.high mud r-..,-` r weight and severe dogleg _ tw r s appieatiots, ---: I Spirodal 2 bearing with :Aver plated component It •iiett, ensured longer runs at . 11 " 4 higher ROP. Tht proprietary material offers *' maximum wear resistance and with:tan&extreme load forced for longer periods than conventional bearing :Cyber Expanded bit are operatically designed to drill soft formation:v+ith exceptional matetiab. ROP and refrabiity. With the provers Gemini Twin Seal cydtem and the ut ra durable ■Premium hardmatal material . MtC2 hardmetal these bit deliver maximum ROP arid long run timed in a wide range reduced wear,provide: t4° ^` of application:. superior durabiity and v., endured that a full gauge 0 Spocilations hole id drilled Bearing TypeComponent Spi octal"2 Bearing Pta4ad Seal Type Gene- en"M'"Twin Seat Sy em BACo Type -58"APiReg Rory^ Total:7 Inner 4 Gape:3 lnxert!Teelh Total 54 Inner 25 Gape:29 Pitir•melers fit 10.000 To 50.000(i,e) 4.545 To 22.25(deN) 4To22(ronne4 Retary Speed 03PM) _ 300 To 50 Operating parameter;are typical range: Please contact your Smit Bit repredentatne for recommendation:for your individual well. Page 12 Revision 0 May,2013 • S Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 11.3 4-1/2" HWDP will come from Saxon. 11.4 Daily Jars will come from Weatherford. 11.5 9-7/8"proposed BHA: • 9-7/8" MTB (IADC 117) • A800M7840XP mud motor. • 9-3/4"NM Stabilizer • 6-3/4"NM Pony Stabilizer • 9-3/4"NM Stabilizer • Telescope 675 NF (MWD) • 6-3/4"NM DC • (5) 4-1/2"HWDP • 6-1/4" HDL-100 Dailey Jar • (15)4-1/2"HWDP • 4-1/2"DP to surface. 11.6 No LWD tools will be run on the 9-7/8"hole section. 11.7 Begin drilling out from 10-3/4" conductor at reduced flow rates to avoid broaching the conductor. 11.8 Drill 9-7/8"hole section to 800' MD/ 799' TVD. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Pump at 500 gpm. Ensure shaker screens are set up to handle this flowrate. • Keep swab and surge pressures low when tripping. • Make a wiper trip after 500' unless hole conditions dictate otherwise. • Ensure shale shakers are functioning properly. Check for holes in screens on connections. • TD the hole section in a good shale btwn 750' & 850' MD. • Take MWD surveys every stand drld. • Mud logging requirements: Not required for surface hole unless specified by the AOGCC in the APD. ' l tir�.��► '�" Ca^^.a//mac /%7).v r 4.- ete /toll c dor 4= /7 f ?C /Pc Z-'03 Page 13 Revision 0 May,2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 11.9 9-7/8"hole mud program summary: Weighting material to be used for the hole section will be barite. Additional barite will be on location to weight up the active system (1)ppg above highest anticipated MW. Canrig PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller's console, Co Man office, Toolpusher office, and mud loggers office. System Type: 9.5—9.6 ppg Pre-Hydrated Aquagel/freshwater spud mud Properties: Depths Density Viscosity Plastic Viscosity Yield Point API FL pH 80-800' 9.5—9.6./ 60-85 10-30 45-25 <10 8.5-9.0 PPg System Formulation: Aquagel/FW spud mud Product Concentration Fresh Water 0.905 bbl soda Ash 0.5 ppb AQUAGEL 12-15 ppb caustic soda 0.1 ppb (9 pH) BARAZAN D+ as needed BAROID 41 as required for weight 9.5ppg PAC-L/DEXTRID LT if required for<10 FL ALDACIDE G 0.1 ppb X-TEND II 0.02 ppb 11.10 At TD; pump sweeps, CBU, and pull a wiper trip back to the 10-3/4" conductor shoe. 11.11 TOH with the drilling assy, handle BHA as appropriate. 11.12 No open hole logs are planned for the 9-7/8"hole section. While logging the 6-3/4"hole section, the wireline logs will be pulled back across the surface casing to obtain a GR signature '/ through the surface casing. Page 14 Revision 0 May,2013 Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 12.0 Run 7-5/8" Surface Casing 12.1 R/U and pull long wearbushing. 12.2 R/U Weatherford 7-5/8" casing running equipment. • Ensure 7-5/8" BTC x 4-1/2" CDS 40 XO on rig floor and M/U to FOSV. • R/U fill up line to fill casing while running. • Ensure all casing has been drifted on the location prior to running. • Be sure to count the total # of joints on the location before running. • Keep hole covered while R/U casing tools. • Record OD's, ID's, lengths, S/N's of all components w/vendor&model info. 12.3 P/U shoe joint, visually verify no debris inside joint. 12.4 Continue M/U&thread locking shoe track assy consisting of: • (1) Shoe joint w/float shoe bucked on (thread locked). Install (2) centralizers on shoe joint over a stop collar. 10' from each end. • (1) Joint with coupling thread locked. Install one centralizer mid tube over a stop collar. • (1) Joint with float collar bucked on pin end &thread locked. Install one centralizer mid tube over a stop collar. Install another centralizer over coupling at top of joint. • Ensure proper operation of float equipment. 12.5 Continue running 7-5/8" surface casing • Fill casing while running using fill up line on rig floor. • Use"API Modified"thread compound. Dope pin end only w/paint brush. • M/U connections to the base of the triangle stamped on the pin end. Note M/U torque values required to achieve this position. Estimated torque to reach base of triangle: 10,750 ft-lbs. • After making up several connections, use the torque required to M/U to base of triangle as the M/U torque and continue running string. • Install (1) centralizer every other joint to 300'. Do not run any centralizers above 300' in the event a top out job is needed. • Utilize a collar clamp until weight is sufficient to keep slips set properly. 7-5/8" BTC Estimated M/U Torque Casing OD Est Torque to Reach Triangle Base 7-5/8" 7,630 ft-lbs Page 15 Revision 0 May,2013 i Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company MUM Tenaris Casing and Tubing Performance Data Choose pipe size,wall thickness and steel grade to view API connection options and performance data. Size • 'Nall ', Grade v Connection 'V Unit Pipe Body Data GEOMETRY A. Nominal OD 7.625 in Wall Thickness 0.375 in API Drift Diameter 6.750 in Nominal Weight 29.70 IbsIt Nominal ID 6.875 in Alternate Drift Diameter n.a. Plain End Weight 29.06 lbsift Nominal Cross Section 8.541 sq in PERFORMANCE Steel Grade L80 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Body Yield Strength 683,000 lbs Internal Yield Pressure 6,890 psi Collapse Pressure 4,790 psi Connection Data GEOMETRY Regular OD 8.500 in Threads Per Inch 5 Make-Up Thread Turns 1 PERFORMANCE Steel Grade L80 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Joint Strength 721,000 lbs Internal Pressure 6,890 psi Resistance TenansHy'dr l Premium Connections Print I Contact Us Ver 8.6 12.6 Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 12.7 Slow in and out of slips. 12.8 P/U casing hanger joint and M/U to string. Casing hanger joint will come out to the rig with the landing joint already M/U. Position the shoe as close to TD as possible. Strap the landing joint while it is on the deck and mark the joint at (1) ft intervals to use as a reference when landing the hanger. 12.9 Lower string and land out in wellhead. Confirm measurements indicate the hanger has correctly landed out in the wellhead profile. Page 16 Revision 0 May, 2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 12.10 R/U circulating equipment and circulate the greater of 1 x casing capacity or 1 x OH volume. Elevate the hanger offseat to avoid plugging the flutes. Stage up pump slowly and monitor losses closely while circulating. Circulate longer if necessary to prepare mud for upcoming cmt job. 12.11 After circulating, lower string and land hanger in wellhead again. Ensure to run in the hanger lock downs as the casing could be lifted during the cmt job if any packing off occurs. Consider chaining the surface casing down to the rig floor if possible. Fdownward: (395 psi x 37.122in2) x (29.7 x 800) = 38,423 lbf Fupward: 493 psi x 45.66 in2 =-22,510 lbf Fnet: 38,423 lbf—22,510 lbf= 15,913 lbf(downward) Page 17 Revision 0 May,2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 13.0 Cement 7-5/8" Surface Casing 13.1 Hold a pre job safety meeting over the upcoming cmt operations. Make room in pits for volume gained during cement job. Ensure adequate cement displacement volume available as well. 13.2 R/U cmt head (if not already done so). Ensure top and bottom plugs have been loaded correctly. 13.3 Pump 5 bbls 10 ppg spacer. Test surface cmt lines. 13.4 Pump remaining 35 bbls 10 ppg spacer. 13.5 Drop bottom plug. Mix and pump cmt per below recipe. 13.6 Cement volume based on annular volume + 100% open hole excess. Job will consist of lead& tail, TOC brought to surface. Estimated Total Cement Volume: Section: Calculation: Vol (BBLS) Vol(ft3) LEAD: 80' x .0397 bpf= 3.2 18 10-3/4" Conductor x 7- 5/8" casing annulus: LEAD: (470' — 80') x .038 bpf x 2 = 30 169 76 sx 9-7/8" OH x 7-5/8" Casing annulus: Total LEAD: 33.2 187 TAIL: (250') x .038 bpf x 2 = 20 112 9-7/8" OH x 7-5/8" Casing annulus: TAIL: 90 x .0459bpf = 4.1 23 110 rs- 7-5/8" Shoe track: Total TAIL: 24.1 135 Page 18 Revision 0 May, 2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company Cement Slurry Design: Lead Slurry (470' MD to surface) Tail Slurry (800' to 470' MD) System Extended Conventional Density 12 lb/gal 15.4 lb/gal Yield 2.44 ft3/sk ✓ 1.22 ft3/sk Mixed Water 14.349 gal/sk 5.507 gal/sk Mixed Fluid 14.469 gal/sk 5.507 gal/sk Code Description Concentration Code Description Concentration Type1 Cement 94 lb/sk WBWOB Type1 Cement 94 lb/sk WBWOB Additives D110 Retarder 0.12 gal/sk VBWOC D046 Anti Foam 0.2% BWOB D046 Anti Foam 0.2% BWOB D065 Dispersant 0.4% BWOB D079 Extender 2.0% BWOB S002 CaCl2 0.2% BWOB D020 Extender 2.6% BWOB S002 CaCl2 0.2% BWOB 12.7 After pumping cement, drop top plug and displace cement with 9.5 ppg 6% KC1/PHPA drilling fluid (mud and MW to be used on next hole section). 12.8 Ensure cement unit is used to displace cmt so that volume tracking is more accurate. 12.9 Displacement calculation: 710' x .0459 bpf= 32.6 bbls 12.10 Monitor returns closely while displacing cement. Adjust pump rate if necessary. If hanger flutes become plugged, open wellhead side outlet in cellar and take returns to cellar. Be prepared to pump out fluid from cellar. Have some sx of sugar available to retard setting of cement. 12.11 Do not overdisplace by more than '/2 shoe track volume. Total volume in shoe track is 4.1 bbls. 12.12 Be prepared for cement returns to surface. If cmt returns are not observed to surface, be prepared to run a temp log btwn 6— 12 hours after CIP. 12.13 Bump the plug with 500 psi over displacement pressure. Bleed off pressure and confirm floats are holding. If floats do not hold,pressure up string to final circulating pressure and hold until cement is set. Monitor pressure build up and do not let it exceed 500 psi above final circulating pressure if pressure must be held. 12.14 R/D cement equipment. Flush out wellhead with FW. 12.15 Back out and L/D landing joint. Flush out wellhead with FW. Page 19 Revision 0 May, 2013 i Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 12.16 M/U pack-off running tool and pack-off to bottom of Landing joint. Set casing hanger packoff. Run in lock downs and inject plastic packing element. Test to 3000 psi. 12.17 Lay down landing joint and pack-off running tool. Ensure to report the following on wellez: • Pre flush type,volume(bbls)&weight(ppg) • Cement slurry type, lead or tail,volume&weight • Pump rate while mixing,bpm,note any shutdown during mixing operations with a duration • Pump rate while displacing,note whether displacement by pump truck or mud pumps,weight&type of displacing fluid • Note if casing is reciprocated or rotated during the job • Calculated volume of displacement, actual displacement volume,whether plug bumped&bump pressure, do floats hold • Percent mud returns during job, if intermittent note timing during pumping of job.Final circulating pressure • Note if pre flush or cement returns at surface&volume • Note time cement in place • Note calculated top of cement • Add any comments which would describe the success or problems during the cement job NOTE:Send"As-Run"casing tally and"Csg and Cmt Report"to lkeller@hikorp.com Page 20 Revision 0 May,2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 14.0 BOP N/U and Test 14.1 N/D the 11" diverter. 14.2 N/U 11"x 5M T3-Energy BOP as follows: • BOP configuration from Top down: 11"x 5M T3-Energy annular BOP/11"x 5M T3-Energy double ram/11"x 5M mud cross/11"x 5M T3-Energy single ram. • Double ram should be dressed with 2-7/8" x 5" VBR in top cavity, blind ram in btm cavity. • Single ram should be dressed with 4-1/2" fixed ram. • N/U bell nipple, install flowline. )e.c r...i3 14.3 Run BOP test assy, land out test plug(if not installed previously). • Test BOP to 250/3504--psi for 10/10 min. Test annular to 250/2500 psi for 10/10 min. • Ensure to leave "A" section side outlet valves open during BOP testing so pressure does not build up beneath the test plug. 14.4 R/D BOP test assy. 14.5 Dump and clean mud pits, send spud mud to G&I pad for injection. 14.6 Mix 9.5 ppg 6%KC1/PHPA drilling fluid for 9-7/8"hole section. 14.7 Set short wearbushing in wellhead. 14.8 Rack back as much 4-1/2"DP in derrick as possible to be used while drilling the hole section. Page 21 Revision 0 May, 2013 Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 15.0 Drill 6-3/4" Hole Section 15.1 P/U 6-3/4 directional assy: • Ensure BHA Components have been inspected previously. • Drift& caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. • Ensure TF offset is measured accurately and entered correctly into the MWD software. • Motor AKO should be set at 1.18 deg. We will need the capability to achieve 2.5 deg/100 DLS to meet the directional plan. • Bit should be dressed with 3 x 13s. We need to pump at a 350 gpm to clean the hole effectively. DD should run independent hydraulics to confirm optimum TFA. 15.2 Primary bit will be the 6-3/4" Smith XR+ (IADC 117). Two of these are available at the OSK dock. Xfr" " Expanded SMITH BITS A Schlumberger Company t 14 ` X -:4 Milled Tooth (11145 MM) IADC:111 4 jb FEATURES P p .P enttur r hardy metal means, xeductxt wear prow:Pet Nttr„ oupet y.durabdrty and etawea ilial a tall gaugt440' � Or*rdialed ■The dual material elaatcr the patented Butter aaal .r govde superior protection ler the heannd teamand enable the brs to attain the utamaea teirabdcy • "� ■$,in 2 beanng ensures FSmger rpan ei h+9her RQP. 7h t proprietary matenai a �-7 eller r:naamwm wear ec:rtanct and wtt444. t.trerraa bad 441`44:lex tomer per ,h that corratatt.>nal t}aredrq mares t Xplorpt Expanded ed baa 444:44144441/4 deootl ed to dolt toll totroottofr wd$et tep oraal ROP and rekahtler.WAS the prones*044K41.Twist Seal syr=tem ar d tho, N,durable MIC2hardmttat.k4a;r bX4defotiprtzas;aatmROP a*4loNrattom;a+r}w4..(*moo apt1�:at+rl+a: 9t+rit9 Type SproYdir 2 Mean *T1 wP$dvtr Plated Seat Tyi a Dual MaEw et Bullet Seats SeC1Xli*tlott tyr» __ 1rrAPI Re* BovaTotat:7 Inner 4 Gale 3 lexaattalTdathe ._..._ Toed 36 lrrr�as.2508d Opthethting Wugha as fit 5.MO To 34.CO 917:) 7.77?1913,6$9dakl Raney Spred...mw<... 2To IdlTonneal 9Rl'Ml 3f10 To 54 Operatmp parameler,sae typical rendez.Pirate contact your S'rnPh&ft representative for reoom m endshorr for your and v chef we Page 22 Revision 0 May, 2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 15.3 Directional BHA: • 6-3/4" roller cone bit • A4757820AD Mud motor(AKO set at 1.15) • 6-5/8"NM Stabilizer • 4.75"NM Pony Collar • 6-5/8"NM Stabilizer • IMPulse 2k Medium flow MWD • 4.75" Collar • 4.75" Collar • (5)joints 4-1/2" HWDP • HDL-100 Dailey Drlg Jar • (15)joints 4-1/2"HWDP f 15.4 TIH to TOC (+/- 710' MD). 15.5 R/U and test casing to 3500 psi/ 30 min. Ensure to record volume/pressure and plot on FIT graph. c I% wwf' C7 s/8 (05 .0 r si. 15.6 6-3/4"hole section mud program summary: Weighting material to be used for the hole section will be barite. Additional barite will be on location to weight up the active system(1) ppg above highest anticipated MW. MD Totco PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller's console, Co Man office, Toolpusher office, and mud loggers office. System Type: 9.5ppg 6%KC1/PHPA fresh water based drilling fluid. Properties: Depths Density ✓ Viscosity Plastic Viscosity Yield Point HTHP FL pH 800'—2409' 9.5—9.6 60- 100 15-30 20-30 <10 8.5-9.5 Page 23 Revision 0 May, 2013 • ! Paxton #5 11 Drilling & Completion Procedure Hilcorp Energy Company System Formulation: 6% KCI / PHPA Product Concentration Water 0.905 bbl KCI 22 ppb Caustic 0.2 ppb (9 pH) BARAZAN D+ 1.1 ppb (as required 18+YP) DEXTRID LT 1-2 ppb EZ MUD DP 0.5 ppb (initial .15 ppb) ALDACIDE G 0.1 ppb BAROID 41 208 ppb (as needed to 9.6 ppg) 15.7 Drill out plugs and shoe track. Clean out rat hole and drill an addition 20' of new formation. 15.8 CBU and condition mud for FIT. 15.9 Conduct FIT to 12 ppg EMW. r ' Note: Offset field test data predicts frac gradient at the 7-5/8"shoe to be btwn 17& 19 ppg EMW. A 12 ppg FIT results in a 2.4 ppg kick margin while drilling with a 9.6 ppg MW. 15.10 Drill 6-3/4"hole section to 2,409' MD/2,371' TVD. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Pump at 300 - 350 gpm. Ensure shaker screens are set up to handle this flowrate. • Utilize inlet experience to drill through coal seams efficiently. Coal seam log will be provided by Hilcorp Geo team,try to avoid sliding through coal seams. Work through coal seams once drilled. • Keep swab and surge pressures low when tripping. • Make wiper trips every 500' or every couple days unless hole conditions dictate otherwise. • Ensure shale shakers are functioning properly. Check for holes in screens on connections. • Adjust MW as necessary to maintain hole stability. Keep HTHP fluid loss< 10. • Take MWD surveys every stand drld. • Mud Logging requirements: Surface casing to total depth, 20 ft samples with 10' samples in • zones of interest,two sets of cuttings, chromatograph,pixler plots. 15.11 At TD; pump sweeps, CBU, and pull a wiper trip back to the 7-5/8" shoe. 15.12 TOH with the drilling assy, stand back BHA if possible. 15.13 R/U and run OH logs consisting of: • Gamma Ray(GR) • CNL-LDT • Resistivity • Dipole Sonic Page 24 Revision 0 May,2013 • Paxton #5 11 Drilling & Completion Procedure Hilcorp Baggy Company • NMR • Formation Pressure Tester(MDT) 15.14 Monitor the well at all times on the trip tank while logging. 15.15 After logging objectives accomplished, pick up a wiper trip BHA and make another run to TD. Circ B/U at TD and TOH. Rack back DP, handle BHA as appropriate. 16.0 Run 4-1/2" Production Liner 16.1 M/U and rack cement stand in derrick. • Ensure to drift components prior to M/U. Ensure dart will pass through components. • Confirm largest OD of packer assy will pass through wear bushing. 16.2 Install and test 4-1/2" casing ram in lower cavity if not done previously. 16.3 R/U Weatherford 4-1/2" casing running equipment. • Ensure 4-1/2" DWC/C HT x DP crossover on rig floor and M/U to FOSV. • R/U fill up line to fill casing while running. • Ensure all casing has been drifted on the deck prior to running. • Be sure to count the total # of joints on the deck before running. • Keep hole covered while R/U casing tools. • Record OD's, ID's, lengths, S/N's of all components w/vendor& model info. 16.4 P/U shoe joint, visually verify no debris inside joint. 16.5 Continue M/U&thread locking shoe track assy consisting of: • (1) Shoe joint w/shoe bucked on&threadlocked (coupling also thread locked). • (1) Joint with float collar bucked on pin end &threadlocked(coupling also thread locked). • (1) Joint with landing collar installed INSIDE pin end. • Solid body centralizers will be pre-installed on shoe joint&FC joint. • Install a solid body centralizer on landing collar joint. Leave centralizers free floating so that they can slide up and down the joint. • Ensure proper operation of float shoe. 16.6 Continue running 4-1/2"prod liner • Fill casing while running using fill up line on rig floor. • Use "API Modified"thread compound. Dope pin end only w/paint brush. • Install solid body centralizers on every joint to 800' MD. Leave the centralizers free floating. • Utilize a collar clamp until weight is sufficient to keep slips set properly. Page 25 Revision 0 May,2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 4-1/2" DWC/C HT M/U torques Casing OD Minimum Maximum Yield Torque 4-1/2" 5,800 ft-lbs 6,500 ft-lbs 8,400 ft-lbs Technical Specifications Connection Type: Size(O.D.): Weight(Wali): Grade: DWC/C-HT Tubing 4-112 in 12.60lbM(0271 in) 1-80 Material • 1 ''>°° 1-80 Grade "= 80,000 Minimum Yield Strength(psi) eciairesroswire USA 95,000 Minimum Ultimate Strength(psi) VMS USA 4424 V/$xn Norusleo Pawl.utile IFA Pipe Dimensions i1° ' TX 7/041 1nww;7llar4-1200 4.500 Nominal Pipe Body 0.0.(in) Fair 7134792,7t 3.058 Nominal Pipe Body I.D.(In) tour 0.271 Nominal Wal Thickness(in) 12.00 Nominal Weight(lbs/ft) ( : 12.1.5 Piero End Weight(ins/ft) 3.600 Nominal Pipe Booty Area(sq in) Pipe Body Performance Properties 288.000 Min'mum Pipe Body Yield Strength(lbs) 7,500 Min'anu im Collapse Pressure(psi) 8430 Minimum Internal Yield Pressure(psi) 7,700 hydrostatic Test Pressure(psi) Connection Dimensions 5.000 Connection 0.0.(in) 3.958 Connection I.D.(in) 3.833 Connection Drift Diameter(in) 3,94 Make-up Loss(in) 3.600 Critical Area(sq 100,0 dont Efficiency(%) • Connection Performance Properties 288,000 Joint Strength(lbs) 14,290 Reference String Length(ft) 1.6 Design factor 314,000 API Joint Strength(lbs) 288,000 Compression Rating Obs) 7.500 API Cotapse Pressure Rating(psi) ;, 8.430 API Internal Pressure Resistance(psi) 81.5 Maximum Uniaxial Bend Rating Negress/100 ft] Appoximated Field End Torque Values 5,800 Minimum Final Torque(ft-lbs) 6,500 Maximum Final Torque(fifes) 8.400 Connecticut Yield Torque(ft-ICs) For detailed Intoemetien on pe fdrmsnee properties,rarer 1e UWC Conneetton Data Noma err fotiawtn j pa gelal. CotacIcn apodtr.,0100s weal the coraioi of 1:AM USA wane ro rod as 010*400 pause.Specl5c tons era 601:0,110 t*acrg0 wtthu:4 twice.certain connection apottrcatons ore Cepens:foal on tare mechar*cal p°aperilea of the Wise,Mochmitxl PetVeth n of®iS prrcprtelesy pip*grata*wera obtal od horn rn31 Wbiratorre and are seated to chorea..Properties of nil prooifetiry grades should be eco nO4 wse eta rril Users ere whited to otatah current CAtOntdiOn spatikAtlaes 01111'-Meg p`pe rnatennieAl prowess kr oath uplxalko 914/2012 Page 26 Revision 0 May,2013 • . Paxton#5 Drilling & Completion Procedure Hilcorp Energy Company 16.7 Ensure to run enough liner to provide for approx 200' overlap inside 7-5/8" casing. Ensure hanger/pkr will not be set in a 7-5/8" connection. 16.8 Before picking up Baker ZXP liner hanger/packer assy, count the# of joints on the pipe deck to make sure it coincides with the pipe tally. 16.9 M/U Baker ZXP liner top packer. Fill liner tieback sleeve with"Pal mix", ensure mixture is thin enough to travel past the HRD tool and down to the packoff. Wait 30 min for mixture to set up. 16.10 RIH one stand and circulate a minimum of one liner volume. Note weight of liner. Do not exceed 60% of the nominal liner hanger setting pressure. Nominal liner hanger setting pressure is 2500 psi. 60% of this value is 1500 psi. 16.11 RIH w/liner on DP no faster than 1-1/2 min/ stand. Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 16.12 Slow in and out of slips. 16.13 Continue to fill the DP every stand down using fill up line on rig floor. Do not stop to fill casing. 16.14 P/U the cmt stand and tag bottom with the liner shoe. P/U 2' off bottom. Note slack-off and pick-up weights. 16.15 Stage pump rates up slowly to circulating rate without exceeding 60% of the liner hanger setting pressure(1500 psi). Circ and condition mud with the liner on bottom. Reduce the low end rheology of the drilling fluid by adding water and thinners. 16.16 Reciprocate & rotate string if hole conditions allow. Circ until hole and mud is in good condition for cementing. Page 27 Revision 0 May, 2013 • Paxton#5 Drilling & Completion Procedure Hilcorp Energy Company 17.0 Cement 4-1/2" Production Liner 17.1 Hold a pre job safety meeting over the upcoming cmt operations. 17.2 Attempt to reciprocate the liner during cmt operations. 17.3 Pump 5 bbls 12 ppg MUDPUSH II spacer. 17.4 Test surface cmt lines to 4500 psi. 17.5 Pump remaining 15 bbls 12 ppg MUDPUSH II spacer. 17.6 Mix and pump 15.3 ppg class "G" cm per below recipe. Ensure cmt is pumped at designed weight. Job is designed to pump/1,0 % OH excess. SDia Estimated Total Cement Volume: Section: Calculation: Vol (BBLS) Vol (ft3) 7-5/8"x 4 DP"Overlap: 200' x 0.03 = 6 33.7 7-5/8"x 4-1/2"Liner Overlap: 200' x 0.026 = 5.3 29.8 6-3/4"OH x 4-1/2"Liner: (2409' — 800')x 0.026 x 1.5 = 63 354 4-1/2"Shoe track: 90' x 0.015 = 1.4 7.9 Total Volume (bbls): 6 +5.3 + 63 + 1.4 = 75.7 bbl 425 ft3 Total Volume (sx): 425 ft3 / 1.57= 270 sx Page 28 Revision 0 May, 2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company Slurry Information: System LiteCRETE Density 12.5 lb/gal Yield 1.57 ft3/sk Mixed Water 5.476 gal/sk Mixed Fluid 5.476 gal/sk Expected Thickening 100 Bc at 05:57 hr:mn Expected ISO/API 15 mL in 30.0 min at 175degF/ 1000 psi Fluid Loss Additives Code • Description Concentration D046 Anti Foam 0.2% BWOC D202 Dispersant 0.5% BWOC D400 Gas Control Agent 0.5%BWOC S002 CaCl2 0.1% BWOC 17.7 Drop DP dart and displace with 9.5 ppg drilling fluid. 17.8 Reduce pump rate to 3 bpm prior to latching DP dart into liner wiper plug. Note plug departure from liner hanger running tool and resume pumping at full displacement rate. Displacement volume can be re-zeroed at this point. 17.9 If elevated displacement pressures are encountered, position liner at setting depth and cease reciprocation. Monitor returns &pressure closely while circulating. Notify Drilling Foreman immediately of any changes. 17.10 Bump the plug and pressure up as required by Baker procedure to set the liner hanger(20% above nominal setting pressure. 2500 psi is nominal setting pressure. Pressure up to 3000 psi to confirm hanger setting. 17.11 Slack off total liner weight plus remaining string weight to confirm hanger set. 17.12 Do not overdisplace by more than '/2 shoe track. Shoe track volume is 1.7 bbls. 17.13 Pressure up to 3300 psi and hold for 2 minutes to stroke the hydraulic pusher tool and set packer. 17.14 Pressure up to 4200 psi and hold for 1 minute neutralize &release the running tool (HRD-E) from the liner. Page 29 Revision 0 May,2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 17.15 Bleed pressure to zero to check float equipment. 17.16 P/U to P/U weight plus 1 ft. 17.17 Close annular and test 4"DP x 7-5/8"annulus to 1500 psi/ 10 min to test liner top packer. 17.18 Bleed off pressure, open up annular. 17.19 Pressure up to 500 psi down DP and pick up to remove the RS packoff bushing from the RS nipple. Bump up pressure as req'd to maintain 500 psi DP pressure while moving pipe until the pressure drops off rapidly, indicating pack-off is above the sealing area(ensure that 500 psi will be enough to overcome hydrostatic differential at liner top). 17.20 Immediately with the loss of pressure and before DP reaches zero, initiate circulation while picking up to position the bottom of the stinger inside the tieback sleeve. Increase pump rate to wellbore clean up rate until the sleeve area is thoroughly cleaned. 17.21 Pick up to the high-rate circulation point above the tieback extension, mark the pipe for reciprocation, do not re-tag the liner top, and circulate the well clean. 17.22 Watch for cement returns and record the estimated volume. Rotate &circulate to clear cmt from DP. 17.23 POOH,verify the liner top packer received the required setting force by inspecting the rotating dog sub. Page 30 Revision 0 May,2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company Backup release from liner hanger: 17.24 If the HRD-E tool still does not release hydraulically, left-hand (counterclockwise)torque will have to be applied to the tool. This torque acts to shear brass screws. Bleed off pump pressure and ensure that the tool is in the neutral position. Apply left-hand torque as required to shear screws. 17.25 NOTE: Some hole conditions may require movement of the drillpipe to "work" the torque down to the setting tool. 17.26 After screws have sheared,the top sub and body of the setting tool will turn 1/4 turn. Then proceed slacking off set-down weight to shear second set of shear screws. The top sub will drop 1-3/4 inches. At this point,the bottom sub no longer supports the collet fingers. Pick straight up with workstring to release collet from the profile. Ensure to report the following on wellez: • Pre flush type,volume(bbls)&weight(ppg) • Cement slurry type, lead or tail,volume&weight • Pump rate while mixing,bpm,note any shutdown during mixing operations with a duration • Pump rate while displacing,note whether displacement by pump truck or mud pumps,weight&type of displacing fluid • Note if casing is reciprocated or rotated during the job • Calculated volume of displacement,actual displacement volume,whether plug bumped&bump pressure,do floats hold • Percent mud returns during job,if intermittent note timing during pumping of job.Final circulating pressure • Note if pre flush or cement returns at surface&volume • Note time cement in place • Note calculated top of cement • Add any comments which would describe the success or problems during the cement job Page 31 Revision 0 May,2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 18.0 Wellbore Clean Up & Displacement 18.1 M/U casing clean out assy complete with casing scraper assys for each size casing in the hole. • 3-3/4"bit or mill. • Casing scraper&brush for 4-1/2" 12.6#casing (MI Swaco -Multiback) • +/- 1700' 2-7/8"tbg • PBR Polish mills • Casing scraper&brush for 7-5/8"29.7#casing (MI Swaco -Multiback) • 4-1/2" drill pipe to surface. 18.2 TIH&polish PBR. Ensure bit is approx. 15 —25' above the LC when the PBR polish mill no— go lands out on the liner top. • Circulate as needed on trip in if string begins to take weight. • Circulate hi-vis sweeps as necessary to carry debris out of wellbore. • The objective of the clean out run is to ensure wellbore is clean and free of solids, displace mud from wellbore, and ensure tie back sleeve is polished and ready to receive seal assy. 18.3 After wellbore has been cleaned out satisfactorily using test casing to 3500 psi/30 min.4,44A,t^ (`f x7 8 18.4 Displace drilling fluid in wellbore with a hi-vis pill followed by fresh water. • Circulate fresh water into wellbore until clean-up is satisfactory. Do not recirculate fluid, • After a couple circulations using FW, short trip the assy to bring the upper 7-5/8"multi-back assy to surface. • RIH again&tag landing collar w/3-3/4"bit. Continue circulation as necessary until fluid cleans up. Make another short trip if necessary. • Pump a chemical train followed by filtered 6%KC1 after fluid has cleaned up satisfactorily. Target NTUs are 80 - 100. 18.5 TOH w/clean out assy. LDDP on the trip out. Note any abnormal wear on the mill assy. 19.0 Run 4-1/2" Tieback String 19.1 Pull short wear bushing, get an accurate measurement of RKB to tubing hanger load shoulder. This will be sued for the tie-back space out calculation. 19.2 R/U 4-1/2"casing handling equipment. • Ensure XO to DP made up to FOSV and ready on rig floor. • String should stay full while running, r/u fill up line and check as appropriate. 19.3 P/U tieback seal assy and set in rotary. Ensure to inspect seal assy for any damage &remove any plastic wrap or tape. Page 32 Revision 0 May,2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 19.4 M/U first joint of 4-1/2"to seal assy. 19.5 Run 4-1/2"tieback to installation point of SCSSV. • Following running procedure outlined above. • Install SCSSV to position valve 300'below ground level. 19.6 Install SCSSV to position valve 150' below ground level. • R/U SCSSV control line spooler and hang control line sheave derrick. • M/U SCSSV assy to production tubing. • Terminate and test control line into SCSSV. Test to 3500 psi/30 min. 19.7 Continue running 4-1/2"to position seal assy+/-20' above liner top. 19.8 M/U 4-1/2" IBT x 4"drill pipe XO to a stand of DP. 19.9 M/U stand of DP to string, and M/U top drive. 19.10 Break circulation at 1 bpm and begin lowering string. 19.11 Note seal assy entering tieback sleeve with a pressure increase, Stop pumping and bleed off pressure, leave standpipe bleed off valve open. 19.12 Continue lowering string and land out on no-go. Set down 5 — 10k lbs. Mark the pipe at this depth as"NO-GO DEPTH". 19.13 P/U string& stand back DP stand, L/D XO. 19.14 M/U (or L/D) necessary joints and pup joints to position seal assy at 1 ft above"NO-GO DEPTH"when tie-back hanger lands out in wellhead. 19.15 P/U hanger assy. Top of hanger landing joint is 4-1/2" BTC. Ensure 4-1/2" BTC XO is available to allow circulation down the string. 19.16 R/U to circulate down tieback. Displace 4-1/2"x 7-5/8" annulus to inhibited packer fluid. 19.17 Confirm hanger has seated properly in wellhead. Should be approx. 10k lb on hanger when landed. Make note of actual weight on hanger on morning rpt. 19.18 Run in hanger lock downs. 19.19 Test 4-1/2"prod bore to 1500 psi/ 30 min. 19.20 Back out landing joint. M/U packoff running tool and packoff to bottom of landing joint. Set tubing hanger pack off. Test void to 3000 psi/ 10 min. Page 33 Revision 0 May, 2013 • • II Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 19.21 Test 4-1/2"x 7-5/8"production annulus to 1500 psi/30 min. 19.22 R/D casing running tools. 20.0 Install Production Tree 20.1 N/D BOP. 20.2 Install &test production tree. 20.3 RDMO Saxon rig#147 20.4 After rig has departed, run CBL to determine cmt quality behind 4-1/2"production liner. 20.5 Swab well down with slickline, perforate Lower Sterling A, Top Beluga Fm, Beluga 45, & /____) Beluga 50 as indicated on logging results. Ott (obi 4 CC. U al- 4 •c -i3 Page 34 Revision 0 May, 2013 • Paxton #5 II Drilling & Completion Procedure Hilcorp Energy Company 21.0 BOP Schematic . ., l ni li r _I tt 3.5" Model 6:11.1 lit ftlttffit lII 3.f30' la � 3 Loot*, ii : + ".. 0f'tri.-ia17 7 - II t Ll"-53fi) , ili 1111 91111.181•111191 I :—__ IR11i1�e1�11.1t1�111 t 21/16 SM Kill Side 3 1/ SM Choke Side I 1 ,1 1.41' - P.`irx3el • K.si. 11"-5603' II initimmunityi Grade 2.010' III !, t A II LI ' .��.,�'gi*t .` 11. � '� :1 t t. .X 111 li 3 ry` Dili ;I1�QAY 4a I 110% 7 5/B". Page 35 Revision 0 May,2013 • 0 II Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 22.0 Wellhead Schematic BliTA,Bowen,4 1/16 5M FE X 7"-5 Stub acme Bowen Quick Union 111111 .14- ,0\y6C5.' ,...1,.:0 4 4. $cs0,,. Valve,Swab,WKM M, lotil AN NZ, k4V \".:N C. 4 1/16 5M FE,HWO,DD trim ...I« t• ',\N'cz,.'•-' 1/4' ICI Iltella4 I), oO. Ph - ....' '''-''-'-'-',„ Valve,Wing,WKM-M, • ,c,, • 2 1/16 SM FE,1-1WO,DD trim 4.- .y. I 0 0.1 _ . . . , ti , el _ , . LI a '661101., WIN1111111 Valve,Upper Master WKM-M,4 1/16 5M FE, ri r Q • HWO,DD trim tr* I-..111111d,., Valve,Master,WKM-M, • • *---,* 4 1/16 SM FE,HWO,DD trim 1 ci AI . a .. . Multibowl Wellhead,SMB- 22,11 SM X 10 3,1„SOW,w/ Irsililliiii 4-2 1/16 5M SSO , moior—. —k .i............. 7 5/8 mandrel manger and ,4r- ir-1., ,,, ‘, _ ' r i packoff qntal led in twari Asizt-amin 0 i : 4 • : 1 IL il .1 t ! iiii 0 biy•;,.......,,, ! . lop: I= • • 1) r I 11 i lc . : : ...c. : o 4 . V I Ip 10 W. 75/8" - 51414' csa- 4 c, Page 36 Revision 0 May, 2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 23.0 Days Vs Depth Days Vs Depth 0 - — ♦ ♦ 4 500 ♦ 1 t 1000 F 1500 E. • d 2000 Z50D ♦ ♦ ♦ ♦ 4 4. 3000 0 5 10 15 20 25 Days Page 37 Revision 0 May,2013 I di 111 Paxton #5 Drilling & Completion Procedure HilC011:1 Energy Company 24.0 Geo-Prog GEOLOGICAL PROGNOSIS WELL NAME: Paxton 5 FIELD. Ninilchik Unit Paxton Pad SURFACE X206316 STATE Alaska ...- Y=2230587 r.• • • z X=206456 LONG 1516083538 TVD REF DATU KB Y=2230886 LAT:60..0968261 r TVD REF ELEV 171 .,.„ COORD REF, SYSTEM NAD27 GROUND ELEV _ 148 ____ PROPOSED Ti 2403MD EMMEN ,Drill a 2403'MD Beluga gas well. ' 1 Geo Surnmarp Location is a shallow pool exploratory well on the crest of the Paxton structural closure It is above the Paxton I Justification PA,is above all currently productive reservoirs and hence is classified as an exploratory well. It will test numerous Upper Beluga and Lower Sterling objectives logged in the Paxton 3 and Paxton 4 wells, -, , I .4,- ii s- ry, tie 1 a• Z a . .4, 'a I EXPECTED , Intersection Points TOP TOP NAME FLUfD MD(FT) TVD(FT) TVDSS(FT) Est.Pressure X 3 Y +1- Lower Stoning A Pos Gas or Wet 927 -756 278 Top Beluga Fm GAS 1,347 -1,176 579 20644t0 2230800.0 10 Beluga 45 GAS 1,863 -1,692 801 10 Beluga 50 GAS 2,059 -1,688 885 10 Total Depth 2403 2.371 -2,200 =Primary Objective =Secondary Objecti.er TARGET RADIL 100 FT .Miffinill1=111111 : DATA COLLEC ION REQUIREMENTS: Mud Logging. Su . ,..cestrtg to total depth,20 ft samples with 10'samples In zones of Interest two sets of Guth ,chrodiatograph,Oder plots, 1/ LWD Data one r____ E-Line Log Da Quad Combo--Surf.Csg To TD(GR,CNL-LOT.Res,Dipole Sonic,NMR,Formation Pressure Tester Nice MDT) , Q 1 COMPLETION TYPE Monobore ANTICIPATED RATES 1500 MCFGD A ARTIFICIAL LIFT EQUIPMENT 0 TUBING SIZE i 1 - OTHER COMMENTS ' A 11.Very similar to,and adjacent to,the Marathon Paxton#1 and Paxton#2 wells. 1 2.There-eine wells completed ih Section 13,there are no gas wells i within 3000'. The targets are above the PA,so tract operations will prevail.NoN:wadng exception needed. 3. Paxton 6 is a simple low deviation angle directional well.Target is BM as specified above. 4. Paxton 6 will require a C-Plan exemption letter,similar to that 5.Bottom of surface casing needs to be shallower than 800'. s -1 Page 38 Revision 0 May,2013 • • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 25.0 Anticipated Drilling Hazards 9-7/8" Hole Section: Lost Circulation: Ensure 500 lbs of BaroFibre (Fibrous Cellulosic Material), 500 lbs SteelSeal (Angular, dual-composition carbon-based material), & 500 lbs different sizes of Calcium Carbonate are available on location to mix LCM pills at moderate product concentrations. Maintain lOppb total of BaraCarbs/Barofibre/Steelseal while drilling the interval to control any seepage losses. Hole Cleaning: Maintain rheology w/Aquagel & Barazan D+. Sweep hole w/20 bbls Barazan D as necessary. Optimize solids control equipment to maintain density and minimize sand content. Maintain YP btwn 13 - 20 to optimize hole cleaning and control ECD. Wellbore stability: Maintain l Oppb total of BaraCarbs/Barofibre/Steelseal to strengthen wellbore. Maintain MW as necessary using additions of Barite. Filtrate control in the<6 range is required. Maintain additions of PAC L/Dextrid LT to maintain API fluid loss of<6. Maintain 6%KC1 in system for shale inhibition. Coal Drilling: The following lessons were learned from extensive experience drilling coal seams in Cook Inlet. The need for good planning and drilling practices is also emphasized as a key component for success. • Keep the drill pipe in tension to prevent a whipping effect which can disturb coal sections. • Use asphalt-type additives to further stabilize coal seams (BARO-TROL PLUS 4 ppb). • Increase fluid density as required to control the running coal. • Emphasize good hole cleaning through hydraulics, ROP and system rheology. In the event that sloughing coal is encountered, consider spotting a 30 ppb BAROTROL pill across the coal seam. The pill can be safely "squeezed" into the coal by closing the bag and applying pressure not to exceed the total annular pressure loss. H2S: H2S is not present in this hole section. No abnormal temperatures are present in this hole section. Page 39 Revision 0 May,2013 • 1111 Paxton #5 11 Drilling & Completion Procedure Hilcorp Energy Company 6-3/4" Hole Section: Lost Circulation: Ensure 500 lbs of BaroFibre (Fibrous Cellulosic Material), 500 lbs SteelSeal (Angular, dual-composition carbon-based material), & 500 lbs different sizes of Calcium Carbonate are available on location to mix LCM pills at moderate product concentrations. Maintain l Oppb total of BaraCarbs/Barofibre/Steelseal while drilling the interval to control any seepage losses. Hole Cleaning: Maintain rheology w/Aquagel & Barazan D+. Sweep hole w/20 bbls Barazan D as necessary. Optimize solids control equipment to maintain density and minimize sand content. Maintain YP btwn 13 - 20 to optimize hole cleaning and control ECD. Wellbore Stability: Maintain I Oppb total of BaraCarbs/Barofibre/Steelseal to strengthen wellbore. Maintain MW as necessary using additions of Barite. HTHP control in the<5 range is required. Maintain additions of PAC L/Dextrid LT to maintain API fluid loss of<5. Maintain 6% KCl in system for shale inhibition. Coal Drilling: The following lessons were learned from extensive experience drilling coal seams in Cook Inlet. The need for good planning and drilling practices is also emphasized as a key component for success. • Keep the drill pipe in tension to prevent a whipping effect which can disturb coal sections. • Use asphalt-type additives to further stabilize coal seams (BARO-TROL PLUS 4 ppb). • Increase fluid density as required to control the running coal. • Emphasize good hole cleaning through hydraulics, ROP and system rheology. In the event that sloughing coal is encountered, consider spotting a 30 ppb BAROTROL pill across the coal seam. The pill can be safely "squeezed" into the coal by closing the bag and applying pressure not to exceed the total annular pressure loss. H2S: H2S is not present in this hole section. No abnormal pressures or temperatures are present in this hole section. Page 40 Revision 0 May, 2013 • 0 11 Paxton#5 Drilling & Completion Procedure HilCOrp Energy Company 26.0 Rig Layout IA.,atftE.1 --_-----.------------,--,, -,,, .1 I - 4 • is I ill in•,' i . . in iii , . I esEiourts. PIT"rfr4Pin _ _ -, ,r„,,-.---"-a• ---•'- - 1 r."----. ,1 sil, • •,•• !' low...ii_ iiii •11.,.- .-,1 lo.l,I r---! . ..i. Z.16.111,1140111 WIWI 5121Lial 1.• • 1.....001 I• Il .....4..a.',.7;;...,L=.:rniN, i 1 I an . , A .ii • 1 Aa''''L 4ua I" MIIIIIIIIIIIIIII _ . II 11!"1111.11111111111111111161.1.!!II ... -r I 1.1 • ._ ....___. 1 m...... .1 _. , 110•II 1 Ili ME 0.91.1(FR WM/AM I,,Ililimi,j 1 i i 1 L. iiiiiiFiiiii10101111.11111.1 a a IN mom M 1,• •• it.AI 11::. ',ill I __ "..'..'";L 1............111111111.1111111111111111110111:=i.:'".. '"'I f 217741107 III 1`• - --.:.-7 111.--.L---, II I I i I 111111 11 .....'! !IIIII I! .7.•-•-• tt is MI _ .''. 111111111111 III 2:77108_110.171a 'Z.= .Z.= .-.. m ma :• . j i grr------ or. , 1111 Pawn 1 I No = ...........-_-. _ - - ......... ......... . !? .7 , . , . . • ', Tar!I • E-„,111 • il w• ,...! 1 • = . • I 1 III Iri ..., Ej • N .7.---!im _..ta .1.5 I I I 1222121/50/17111•7017=11 I . sY-c ..r......... as•-et SV-5' 1V-4" IFYIS.10/6 pea Male aill2e.26104% T':11. ,3,43=IC 1.1111.110111111111111.11111.1.MONO ft ttUTUrRENCES KM limat Ws . .SaxT wi iv. ' -''..& ...9141.0:. P.M Oft We MAW Ilk MY MM. SAP*ACCWNIiSOOPIC 00Uti1 era* saw 140 MO lee milka a n-mi-ne ma.a.$03-7-147-77-01 I.lou DO Page 41 Revision 0 May, 2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 27.0 FIT Procedure Formation Integrity Test (FIT) and Leak-Off Test (LOT) Procedures Procedure for FIT: 1. Drill 20' of new formation below the casing shoe (this does not include rat hole below the shoe). 2. Circulate the hole to establish a uniform mud density throughout the system. P/U into the shoe. 3. Close the blowout preventer(ram or annular). 4. Pump down the drill stem at 1/4 to 1/2 bpm. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) vs. drill pipe pressure until appropriate surface pressure is achieved for FIT at shoe. 6. Shut down at required surface pressure. Hold for a minimum 10 minutes or until the pressure stabilizes. Record time vs. pressure in 1-minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. The pre-determined surface pressure for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measures are required. Where required, the LOT is performed in the same fashion as the formation integrity test. Instead of stopping at a pre-determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with an FIT. Page 42 Revision 0 May, 2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 28.0 Saxon Rig 147 Choke Manifold Schematic % 1 / �. 67.24 1 43.62 -4562 1111 1r1,ias®. f it 9 46.43 -1462 k4 L2 1663 gf y+�^►� AM fie o -449 -0.19 w-s 4.14 8.19--- fro"ll 449—_1 0.19 11 019- � 1.,•, t B , l � ! • 4 .r e 'rli; ttj3D '� 9.67' `W • 90D • 3!'': 4.••. . MUM ' Kti9 0 sa ,Ili .:1t� MIMI-M M 7.84 .a. fi.�_.� W .. �a"+ 1 AM sn fi I I-a.19 © MI 1E1 11111A1 -� I 1 I I °A9-1 I _art J won.�'. 36.0. l w1161.1111.0 a.t9 tU 74.82 II7 �^x'9 �' „.4,4,4 146.2 3"3 { 1�tiJ 4a `s' 4 i .fi4 at�`l�J �*1�,�jA r 10.62 lir i ` I I I 10 i/it oiu. 0.19-I di frog 7-�, ,• #• 4 `111kJLliNI4 Itja a. 181181 I mum1 -0.14 •G 912 CHQKE MAlUAL M2;C10,T-e -0.19 --0.49 0.19--... 0.19--- -- -.0.19 4tlfRA1014 wsoAts I t 1 / 2 —8.31 --74.62 t4.62 14.62 14.62 8.37 s AQ 4162 t 43.62 �9 1 T ,,,,t4( 81.24 t713" 6Y NOTF- H.,- ---.,C-. 4 -E1- r.rrrrll orr.rr, .r...a..rr-.c.r 1,LAMP'NM 9 0AS4E05 7s" :I ........ 'ne teor OU a e.ru.11 ••••••— /d1Pco-49$1a z- 24 9510*SSID_ IOYc OM Page 43 Revision 0 May,2013 Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 29.0 Casing Design Information Calculation & Casing Design Factors Ninilchik Unit DATE:5/14/2013 WELL:Paxton#5 FIELD: Paxton DESIGN BY:Luke Keller Design Criteria: Hole Size 9-718" Mud Density: 9.5 ppg Hole Size 6-314" Mud Density: 9.5 ppg Hole Size Mud Density: Drilling Mode MASP: 626 psi psi(see attached MASP determination&calculation) Production Mode MASP: 680 psi(see attached MASP determination&calculation) Collapse Calculation: Section Calculation 1,2 Normal gradient external stress(0.494 psilft)and the casing evacuated for the internal stress Casing Section Calculation/Specification 1 2 3 4 �.._._._ Casing OD 7-518" 4-112" Top(MD) 0 600 Top(TVD) 0 599 Bottom(MD) 800 2,409 Bottom(TVD) 799 2,371 Length 800 1.810 Weight(ppf) 29.7 12.6 Grade L-80 L-80 Connection BTC DWC HT Weight w/o Bouyancy Factor(lbs) 23,760 22,806 Tension at Top of Section(lbs) 23,760 22,806 Min strength Tension(1000 lbs) 683 192 Worst Case Safety Factor(Tension) 28.75 8.42 Collapse Pressure at bottom(Psi) 395 1,171 Collapse Resistance w/o tension(Psi) 4,790 7,500 Worst Case Safety Factor(Collapse) 12.14 6.40 MASP(psi) 626 680 Minimum Yield (psi) 6,890 ,✓ 8.430 V Worst case safety factor(Burst) 11.01 12.40 Page 44 Revision 0 May, 2013 i Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 30.0 6-3/4" Hole Section MASP Maximum Anticipated Surface Pressure Calculation 6-3/4" Hole Section Hilcor Paxton tl5 Ninilchik,Alaska MD ND Planned Top: 800 799 Planned TD: 2,409' 2,371' Anticipated Formations and Pressures: Formation TVD Est Pressure Oil/Gas/Wet PPG Grad Lower Sterling A 927 278 Gas/Wet 5.8 0.300 Top Beluga Fm 1,327 579 Gas 8.4 _ 0.436 Beluga 45 1,863 801 Gas 8,3 0.430 Beluga 50 2,059 885 Gas 8.3 0.430 Offset Well Mud Densities Well MW range Top(TVD) Bottom(TVD) Date Paxton#1 9-9.5 0 3,421 Feb-2004 Paxton#2 8.8-9.6 0 3,469 Jan-2008 Paxton#3 9-9.5 0 4,149 Mar-2010 Paxton#4 8.8-9.5 0 3,831 June-2010 Assumptions: 1. Maximum planned mud density for the 6-3/4"hole section is 9.5 ppg, 2. Calculations assume reservoirs contain 100%gas(worst case). 3. Calculations assume worst case event is complete evacuation of wellbore to gas. 4. Anticipated fracture gradient at 799'TVD= 17 ppg EMW Fracture Pressure at 7-5/8"shoe considering a full column of gas from shoe to surface: 799(ft)x 0.S84(psi/ft)= 706 psi 706(psi)- (0.1(psi/ft)°799(ft))= 626 psi MASP from pore pressure;entire wellbore evacuated to gas Beluga 50 2,059(ft)x 0.430(psi/ft)= 885 psi 885(psi)- i0.1(psi/ft)"2,059(ft))= 680 psi Summary: 1. MASP while drilling 6-3/4" production hole is governed by fracture pressure at the 7-5/8"casing shoe. 2. MASP during production mode is governed by SIBHP minus entire wellbore evacuated to gas from the Beluga 50 formation. Page 45 Revision 0 May, 2013 • • II Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 31.0 Directional Program (P2) IISchlumberger Hilco 11....,.c-.: Paxton#5(P2) Proposal Geodetic Report (Def Plan) Report Date: May 06,2013-01:46 PM Survey 101.5 Computation: Minimum Curvature.Lubinski Client: Hilcorp Energy Company Vertical Section Azimuth: 1.266"(True North) 4 Field: Nirelchl t Unit Vortical Section Origin: 0.000 h,0.000 fl Structure 1 Slot: Paxton f Paxton 5 NAD27 TVD Reference Datum: KB Well: Paxton 5 TVD Reference Elevation: 171.000 ft above MSL Borehole: Paxton 5 Seabed/Ground Elevation; 148,000h above MSL , API*: 50133=0000 Magnetic Declination: 16.907° Survey Name: Paxton**(P2) Total Gravity Field Strength: 1001.2894mgn(9.80665 Based) Survey Date: Mey 06.2013 Total Magnetic Field Strength: 65210.175 nT Tori I AHD I D131/ERD Ratio: 22.097'1351.483 R/3.897 10.148 Magnetic Dip Angle: 73.113° Coordinate Reference System: NAO27 Alaska State Plane.Zone 04.US Feet Declination Date: September 01,2013 Location Let I Long: N 60°5'45.59777',W 151°36'32.67948" Magnetic Declination Model: BOOM 2012 1..ocation Grid NIE Y/X: N 2230587.110 BUS,E 208316.540 ftUS North Reference: True North CRS Grid Convergence Angle: -1.3949' Grid Convergence Used: 0.0000° Grid Scale Factor: 0.99999816 Total Corr Mag North->True North: 16.9068' Local Coord Referenced To: Weil Head Comments MD Incl Arlin True TVDSS TVD VSEC NS EW TF DL5 Directional (It) (°l P1 On (tt) (It) (11) (f,) (') /1100ft) Difficulty Index RKB 0.00 0.00 1.27 -171.00 0.00 0.00 0.00 0.00 1.2711 NiA 000 WRP 23.00 0.00 1.27 -148.00 2300 0.00 0.00 0.00 1.27M 0.00 0.00 KOP CM 1!100 500.00 0,00 1,27 329.00 500 00 0.00 0.00 0.00 1.27M 0.00 000 CO!2.5/100 600.00 1.00 1.27 428.99 599.95 0.87 0.87 0.02 358.72M 1.00 0.00 700.00 3.50 358.72 528.91 699.91 4.79 4.80 -0.03 358.31,1 2.50 1.23 7.518" 800.07 8.00 358.30 628.56 799.56 13.06 13.07 -0.25 358.12M 2.50 1.89 900.00 8.60 358.12 727.75 898.75 25.66 25.68 -0.65 0.421 2-50 2.34 Lower Sterling A 928.59 9.21 358.09 756.00 927.00 30.05 30.08 -0.80 0.390 2.50 2.44 1000.00 11.00 358.02 826.30 997.30 42.58 42.80 -1.22 0.331_ 2.50 2.67 1076.37 12.91 357.96 901.01 1072.01 56.35 58,41 -1.77 0.281 2.50 2.88 1100.00 13.50 357.96 924,02 1095.02 63.74 63.80 -1.97 0.271 2.50 2.94 End Cry 1168.64 15.71 357.93 1009.78 1180.78 86.05 86.14 -2.77 MS 2.50 3.13 Fop Beluga 1361.31 15.71 357.93 1176.00 1347.00 132.74 192.87 -4.46 HS 0.00 3.32 Cm 2.5'100 1638.78 15.71 357.93 1443.10 1614.10 207.76 207.97 -7.18 163,7R 0.00 3.52 1700,00 14.25 359:67 1502.24 1673..24 223.57 223,79 -7.52 162.02R 250 3.59 1800.00 11.90 3.42 1599,64 1770=64 246.18 246,40 .6.98 168.37R 2.50 3.69 1820.68 11.42 4.38 1619.90 1790.90 250.38 250,57 -6.70 157.43R 2.50 3.71 Beluga 451 End Cry 1894.03 9.75 8.54 1692.001863.00 253.77 263.95 -5.22 14S 2.50 3.77 Nefurle 50 2092.91 j 9.75 8,54 1888 00 2059:00 29718 297.26 -0.22 HS 000 3.83 TO 4-1'2' 2409.48 9.75 6.54 2200.00 2371.00 350.37 350.28 7.74 000 3.90 Survey Error Model: ISCWSA Rev 0"'3-0 95.000%Confidence 2.7955 sigma Survey Program: MD From MO To EOU Freq Hak Size Casing Diameter Description Survey Tool Type Borehole 1 Survey (fb) (ft) (ft) (lnl (in) 0.000 800.000 11100.000 9.675 7.625 SLB_MWD-STD Paxton 51 Pardon#5(P2) 800.000 2409.480 17100.000 6-750 4.500 SLB_MWD-STD Paxton 5;Paxton#5(P2) Page 46 Revision 0 May, 2013 Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 32.0 Directional Plan View (P2) vs') 600 900 MX 300 30u wup c, tin 600 000 T.N15" 900 • 000 1200 i2oo Ender, 1500 " 1500 Cr21aO 1800 1a00 err • ; PaniA 5 Tap&tug& •- ",— — 2100 2100 • Pfc.*,ri sP7,1 +Mr 2400 -300 0 300 600 900 Vertical Section(ft)Azim 1,2r Scale rz 1:300(ft) Origin 0 NILS,0 E/-V Page 47 Revision 0 May, 2013 • Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 33.0 Spider Plot Plan View (P2) -100 -50 0 60 100 V✓a f` I , 353 '..tli / 1 III if 300 \\ i 300 i 1 i EndC,v i, 250 . i Sc ,' 2SU '*. 5 h A1 r.xs1� j � / 200i / 200 / i f v i to ,ur t ii ,f' rn ,, 1 / v 150 150 4 R8E 101_ P -?3'j iQli Knit y Jo, r, KE_ T 54 • r Gro 3.5.130 /RK41 0 KKK P' -100 -50 0 50 100 150 r.:c W Sralr 1:6ISftj F »o• Page 48 Revision 0 May, 2013 0 Paxton #5 II Drilling & Completion Procedure Hilcorp Energy Company 34.0 Anti-Collision Summary Report reliaderer irl Paxton#5(P2)Anti-Collision Summary Report iiC Analysis Dete•24hr Time: May O6-2513-13 57 Analysis Moused- Norma:Plane Client. Mom Energy Company Reference Trajectory: Paxton 85 j92)(Del Plan) F 1040: Plrlilchik Una Depth Interval- Every 10 CC 14rmsened Oopth j%) Structure. Paxton Rule Set DAM AntiCoitaslon Standard 5002 v5.1 r5 Slot: Paxton 51413027 Min Pts: A9 local minima indicated, Well Paxton 5 Borehole: Paxton 5 Offset Trajectories Summary Offset Selection Criteria Weil/eel dstance scan: Restrcled within 43419 12 11 Selecliurs titters Dellnit`vn Surveys•Definitive Piyrs-Definitive surveys exclude tlefrlitve plans -An Nn--F'nt Si nvnys'0 r.r re De'Sprvay is Set in a borehole-All N[1-Col Plans wir;.-1 co 1>nf Pln•is ser,In..,,,,,,,,,Ir Offset Trajectory Separation Allow 1 Sep. 1 Controlling Reference Trajectory Risk Level 1 Alert Status CI-Ct(ft)I MAS(1r)I EOU(ft) Dew,(ft) Fact. Rule MO(ft) I TVD(R) Aler-1-1 Minor ( Motor 1 Panon 1 11707 Survey) Pass MU 37 et 7891 52.7(( 1519 MAO 1003(m) 93386 93728 41,71110 6594 32.81) 78.80 52,83 1445 MAS-ID.00(m) 95503 96283 M04111-0-800 !4.99 3281 06.54 62.1:mina MAS e 10Oa(en) 114575 1139 35 MiePt-0-5F 111x3.35 3281 108176 1070.50 5362 MASe taco(m) 240948 237104 ID fhutm 21L'44 Wrveyi Pass 141.55 32.81 160.56 89 74 NSA MAS-1C.03 unl 0130 000 &ease mom 3281 57.57 rf oil 1531. MAS=10.03(ml 319.99 31955 Minks 9017 32.811 97.56 6706 7501 MAS=1003(011 32032 32032 MINPT-O-EOU 274 05 3281 2E4.75 2412 man MAO=1003(m) 1209.58 127795 MiwPt-0'.SF 301 72 32 81 369 75 346 51MAO 0 1003('Si 1503 62 158100 61149-0-55702.82 3281 774.38 7E0 02-._95.35 MAS-1000(ml 240946 2371.00 TD Pale 3(Det Sway! Pass i 10'3 14 72 51 MEE® NrA MAS^1003(ml 000 0OC !Arks 29327 3281 20795 28041 M1r: 1a9501806(m) 87647 87547 1/9111-0-5F 31004 32-81 302.25 2772,x' 1 MAS.10.00(n1) 917.30 91543 DA Pt-O-SF 37902 3201 37083 2967 ima35 MAS sr1000(m) 98770 961)03 18,111-0-SF 46976 3251 369-78 3769 MICE4 MAS 010,0(11 114676 114037 9A091-0-16 429.57 32 fit 419.13 396.7 r iiira6 MAS er 13 Oa(m) 118881 110495 411aPt 0S 314109 3672 311494 3102.. I: 0511150 240040 237140 5110111-0-5F Panto 4(Del S100ey) Pass 1 121 371 3251 1203- 66 NrA MA5=1503(nil 030 000 MOT'S 121.48 3281 12013 88.45 34486 MAO 10.030m) 120.00 12000 19407.0.800 20247 3281 19795 1696 MIMI MAS=1003(1) 51997 51992 1410111-0-911 22227 3281 217.37 169.4 111111111ME MAS 0 10.03(m) 586.13 566.13 MMPI.0-SF 234 85 32 81 22958 201."mom MAS=1003(MI 594 35 554 34 11016-0.67 273:77 32.81 267,96 240:1*ma MAO a 10,00(m) 60254 1582 50 MlnP1-0-SF 31129 3281 31068 2044 MAS=1003(m) 78983 769.54 Mnpt-0-SF 41005 3281 461 89 377211111121a MAS=1000(01) 93229 93055 9100115-13-55 3383.38 59.89 3366.43 33434:�r '' OSF1,56 240949 2371.00 MinPt'0-SF Nisi 14061 5u+vny 1 Taff I 6:194114 3261 63894 232041 IhASo 1004jmi 113 113 MInIOn 612499 733.34®• 598194 69.75 05111.,50 72146 721,33 6194€7-0-EOU 6151.12 185.91 6339 94. ' 2:6 75 051 1.50 797.50 797617 MinP1-0.ADP 615581 17043 63414'. 5486 0511150 80632 807.83 1/8111.0.19' 853096 356.20 62521e 61747- 2751 OW 1.50 1475.48 1458,90 4Ainp9-0-511 653123 36008 6203116 6174 14 05F 1.50 1737-36 1709.52 641014-0-SF 6525.97 36507 620207 61608_ 05F1.50 215345 2110.67 56nP0-0-56 551,1:51 15441 63:x175 521413 279• 090150 288940 237100 7D N4Ylnhiv 1611 i(1137 54r+4yl Pl',4 643:50 3281 551643 640965 118978 MA5=144.17(m) Opo 000 Surface I 64'2:3.501 15908 632689 627442 6129 0551.50 496.46 456.40 040111-Clot 8410934 7107!Mae 5894.58 1397 0511.50 161282 1609.16 MINK 0.60U 6865:04 1628.11 67531 Illerg 1043 0511150 169612 195946 1,91P1-0-ADP 6502.78 947,9. 5854.85 10.78 091150 186615 183552 6118710-EOU 488222 1095 3 WEN 111212213 11111111113E 351100 240946 231160 987919 Page 49 Revision 0 May,2013 • DrillingPa&xtCoonm#p5letion Procedure Hilcorp Energy Company SCIIIMbeliger 1RAVELIING CYLINDER PLOT N00)Region EOU'S based Client: Hilcorp Energy on:Oriented EOU _ Conmany Dimension Well Paxton 5 4 IP ii& — l't if Foca N milchik Unit. St ructure Paxton illi io, NoGo ReOon Anti- Diac May rOT,20.13 Collision rule used:Minor Risk.Separation Factor North „3,30 u 16 340 r kfte, 3„ 330 1, 320 , 4---- deittalli.:,.. fin 4 4 ritki 'reWto1---.1.".\,. - G ji 111611.11,lk le,/p mu /* ‘, A. _ 0',.,, 41 A Itik1111Mii, loro ,—,tc Ny --,,,,,,Pgra.' I o, ' ' "--- t. ' I 2 , ,, 2, - I i,, .., ** #,,-','..r4, -- , '* liktiN,l 71' 290 i ' ''',,,,„, '''' \ / € -,,,,,,,, ft Alt:, 4 ,,,,,! spiny? a o , a -270 V 1 II "' I *roe *" , 9C - ,,-,` c A ...., , -- — .,. - . „, ...,.. _,,..,...., , -.,,, ..., 250 / .t il 1-1 *, ,/, 6,17 .)•*, I i .. ,,,, / '.„,„."' , , r \ At,„ 12C 230 22 ,_ 140 C 210 i 1 50' -, 16,-3 2E0 i 3 A 1 7 n Well Ticks Type: MD on Paxton ti5(P2) Calculation Method: Nomtal Plane , Rirt.g Interval: 2000 It Azimuth Interval: 10.0 deg Seale: IN -- '1'050.00 fl Page 50 Revision 0 May, 2013 • Paxton #5 II Drilling & Completion Procedure Hilcorp Energy Company 35.0 Spider Plot (NAD 27) (Governmental Sections) DIC#NtNh.--- �.—..____� ___- ' PAXTON 3 BHL Legend I # Paxton 5 SHL l7 X Paxton 5 WI I 0 0:,0 B €ma Paxlnn.5t3HI. 1 AOLIf.nw . Qtltcr Sorfar-s kaln Locator I • (*bar$oIErn Hots trgcauwi 1 I WWI Paths I PA:..RN4.:°. ,. S,KPB FarrtrK % /• t 01 aid fay Unit Htaarolar, I rr I // I / I / 1 ' 1 ina PAXTON 1BHL 1 N. ADL384372 ,' N. r w t / Ci; 505 // 4.� I // / 6 / 1 // t I f/ // t I r / itt SC101S014W r' t4 l PAXTON Z• - rr r/� o,...f` t t SOOISOI3W 1 r N. 1 r --' NI► 1K2 s l .,`dll rr T ! / • 5 ` t 1r e t Paxton 5 - - 4- 1 Bottom}-tole Location Paxton 5 Paxton S €: Tor of Productive Floriron Surface Hole IOcationt ' P_r______ \\v, AUTUMN CO ca, IL ft AOL384372 t ?'13 C00060385 i'. , 4111.41111111P if ' -7 w . < / /11.1.01 11116111116 rel.'"'clt i i 1;s40 AI a $5 —m .�,.,._. 3' n 1,000 Paxton 5 Feet --= Nasky State Plane Zone 4.NAU2n A Ililrarp 4lsnkA,IV Map Date:w14,2013 Page 51 Revision 0 May, 2013 • Paxton #5 II Drilling & Completion Procedure Hilcorp Energy Company 36.0 Spider Plot (NAD 83) (Governmental Sections) Dl� , end PAXTON 3 BHL LAv t • Paxton 5 SNL 1 t X Paxton 5 TPI I t ` B Q 3t,EN HL~ 4' Pate n 5 BHL i ADL359242 • Oit,er Bursae a Hole Location 1 t • Oihet Bottum Hole Luealue 1 s --—Well Pathe t Parcels I 1 ' I ..,.! PAXTON 4 SHL #,w eaSPw3 • Di and r�r Gas Uno:BeLlidaIi / I / I I 1 t 1 / 1 1 ga 1RJ i'pJC7(9N]8HL t �+ AbL384372 //' .; A I 4+ j' r N. 1 // CO 505 '/ 1 l / c I // 1 t / 't /N 1 / // 1 / ., 1 f S001 S014W /, \� PAXTON T,..$1 // ' A 1 ' / S001S013W t t / / ridL t k ' ! , Paxton 5 e Bottom'Joie I,ocutitln / \t I r / r _. .__.._._.__.._...___._,._ (/ Paxton 5 Paxton 5 ' 1 0r Top of Productive Horizon /7--- Surface Hole Location AUTUMN GOLD ."' �,,'' AD1.384372 03 "----7 Mr / n -1- 13 + ;j 0660385 it/ 411111r4 4 r ►Mow/ -_ i � , A• 390 15 , . t � I i II Paxton 5 Feet kaska State Kane Zone 4 NAD83 A MI,o.p dfa 4 a,LOA' Map Dale:5114@013 Page 52 Revision 0 May, 2013 • II Paxton #5 Drilling & Completion Procedure Hilcorp Energy Company 37.0 Surface Plat (As Built) (NAD 27) 1161: ."-N e NOTES 1 tiAZ4 Of IiivATKlit$6 r66 6.6iiwt I)I',CJ E TIDIAI M AN r rtsto T24 2 OF THE STERLIND hit?.V THE ELEVATION OF 542 tS 2-32 12 MET NOR TH' ,14:010.291 SANS OF HORIZONTAL OCTOROINATES ARE ALASKA STATE PLANE \ jW *MD El ZONE 4 EPOCH 2003 DETERMINED S'Y AN NGS OPUS SOLUTION MON DCATS SASE STATION'S 91.144 MI0212444"."1.AN‘A.K> 03logy'DMA Oil) A112,402`LISSERvED 41.1 he 6,WO ON MD spa FOC 2'AWN CAP SET ADJACENT TO EM 6.2 N 2252517 ISO E 13138533MS ELEV.22418 FEET SCALE 2144ORTEEAST CORNER SEC 13 CODS MATES EMINED TRW DIREC T UWE),nt TOT'S r0 EMT KG St kt St CT PM CrIMSR RECOVERIT i 1 NPROTIRACTE II SF C:T wirt fx)RNFE Mt TiE4 NCI ‘,74:'',.....,...../......."."/ I12 , ,....... 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TOWNSHIP 1 SOUTH, ----.., ENGiNEERiNG-TESTING 621 ."\ SURVEYING VOICE:(907128-MAPPING.-4219 AX(907)28265 DwG SOUK-ITN&AK,99669 3 F : 1-3RANGE 14 WEST SEWARD MERIDIAN ALASKA JOB NO 133O12 1111,r,trit 1E444.L1,1 P.O.BOX 469 COOP14149 Inc VAIVW.MCLANECO COM 133012 Date:31612013 FIGURE: 2 Page 53 Revision 0 May,2013 • Paxton #5 14Drilling & Completion Procedure Hilcorp Energy Company 38.0 Surface Plat (As Built) (NAD 83) NOTES ^^ ^^^ 1/14s /30 tLEWITO.6 NOS le4)40aDONT O NI F0,TTouvo mi E Fve.f '„"""— 124.2 OF THE STEALING H4Gt144A4 THE ELEVATION OF 992 19297,14 FEET NORTH IN3'VD 291 BASIS OF i<N12,'0N AL OOOFIINATES AFE ALASIM STATE FLANE �� ...�,. NAO 92 ZONE EPOCH 2003 DETERMMED 8V Ala MSS C*PU9 SOLUT#(7N MOM COWS Ft4aaSTATi 19'TEMOIOA}ITOU',-IAW61Pt !2-rANO'ONAA NO —{.). N12407 COSERVEP IUHE S.9C07 ONOra 99Ht ECS:2`AIUAR COP RET ADJACENT TO EM 9 2 At:22S2S1T.792 E f 389533,525 ELEV:24ma FEET. SCALE 221 MORTIEAST COMER SEC..11 COORDINATES DETEFANNED FROM INFECT r lei) n? UIe. SEV tit TOtHE TPEgL2TP+GEA.0 SE.CTIONCX)RNER RECOM r,tEp 1 I x I \TPROTRAC;TED SEOTKIN Oi NEN j J''1 S NI t iierEra ,. W. 71., --..).-- t.! k13Y1iSC7 13 I:; PAXTON#5 SURFACE LOCATION NAD133 ASP ZONE 4 1 , SECTION 13 T1S,it i a I,/ 3019'FE.L.7999 FNL�E'EV=146' 4 � OF!�( i',I� II I I >I ' ,. N 2230345.99 _ �. r �i I I ' 1 E; 1346336.001 I 4.;1111. '/ r '� I j T:M6tl°05'43.4534" : }1h4A. r �7,6,1 �' LON: W151'3fi'40.6364' i.... +♦ STANZA.mama,��, _ +tit +nrfl �p"�. ' - ,� ' f1►tw�I+N`` /' { fi ',s if I 1. / t ,,��,,,,, fi w;c I v .-/ 'I. rP ,�" I �J i _ ac. :/ i://" 1 Rif` y i /. it;. 1 . ij / AO .�7 „....„......., ,f rr .. r • M1§FEL A f/ . iv. i PAXTON #5 AS-STAKED SURFACE LOCATION (NAD83) fit LOCATION,SECTION 13. TOWNSHIP 1 SOUTH, ENGINEERING-TESTING RANGE 14 WEST,SEWARtD P.MERIDIAN ALASKA SURVEYING-'MAPPING 11111x1TE;kii.vs a4,114. P.O.SOX 468 so1.C1QTNA,AK,99669 JOE NO 1331]1? VOICE:M0712834218 FAX:(907)21 3265 DWG. Carpal*the. W W.MCLANECG.COM 133012. Date:3,612013 FIGURE. 1 Page 54 Revision 0 May, 2013 • Davies, Stephen F (DOA) From: David Buthman [dbuthman@hilcorp.com] Sent: Monday, June 10, 2013 3:03 PM To: Davies, Stephen F (DOA) Cc: Chris Kanyer; Luke Keller; David Buthman Subject: RE: Paxton 5 Permit to Drill Application: Freshwater Depth Hi Steve, Below are the following: 1. Salinity calculations from the Mobil 1-Ninilchik well. We used this well because none of the Paxton wells logged above approximately 1900'. 2. water wells in the vicinity of the proposed Paxton 5 drill well.The water wells in the vicinity range from 48 to 160' deep. Topography is approximately 150' above sea level. 3. D.L. McGee's map Plate 6 shows Paxton Pad to have 250' of thickness from the ground surface to the base of the freshwater-saltwater gradient. 4. 4.Wellbore schematic for the Paxton#5 well. Also note that the TGAS curve (total gas curve from the mudlog on the Mobil Ninilchik Unit 1) starts registering gas just below the sandstone bed at 200'. As we continue developing the field, we're finding strong evidence of extremely shallow gas prospects in the Sterling, at Ninilchik field, at depths of below approximately 500'TVD. What concerns might you have in delineating such zones of interest? Considering the thin freshwaters of the coastal areas, migh gas become tenable as a drilling target.Your thoughts? Regards, David B. Buthman Senior Geologist Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 dbuthman@hilcorp.com office: 907-777-8375 mobile: 907-854-4543 1 • • • 1V:11' . . 44 1 44 • ,..� . . •.. * ' • • � SALINITY : : .. ... = CALCULATIONS: • : a From Water Well • k : 1ap: Water wells .• •• • . . : . :f.. . . . . . H48-1 Q'.deep.in.the: . area : : • I• = :} • 171-194' sand: -18 : .: . . SSP; 69RW: x-11O • c, ppm Chlorides . . . ._,: . 7 L . •. . . ... 505-535'.sand:.-27. : . .1 :' :.- SSP 3:17 RW -1800 • 'm ppm Chlorides : . . . . . ... . . . . . _- ...1.43 R -60Q0 ppm: . . . . . . ., :1. . . : . . . . : . . . . Chl . • 900-919' sand: -37 • . SSP, 2•.11 R :--260Q .) ::.46,'''' m Chl • . 2 / -- /0, ,e. 0 �U 1111161141611' lq*, r «, 61114,16:1116C IN1q1r61.1174S6 11111%11,111‘ II:4 � � ?: } m �a` r ` lj 14-,-,,,,-,44 " - Iv a ., a .obH ref 11r �JW�. ..e e /s r .� Water._ a de s i 1 i r i ofpropproposed Paxton well. ty _ � .g ' a x e 1 j'' te. m te I- � ' , , . ;._t. i OK INLETWATESALINITIES �` BASE OF BO RED � GK*1ES LSM #` a SALT WA ER/�t ii Rnjce TO j';::::, rt.utr` t.._ .� wtxti a 3 • • , Paxton NS Driiretg &Comptetion „. I:4,', Protecluto rill collo 6.0 Planned Weilbore Schematic c -P4- - -;r1.4».:7,11,,a-.;,-.2:1,!m,--44t.„.,'..,.1:'.r,Dr: -PaTIPPAINP01.7...-t7-77 r 11 ifi!;:.':''/1144114i:::' :filit4,144''Q.- - 1 ' ti.:=.14t014k.:-*Wit oiz,.41...r:-fc.,iii4A3.-VW&I,....,, ,.. ...,,,....,JVaifig4,7'1 C * es Tut,,,,t '"°"""'"- 0 ..-1,$' 140 Va team mm ,v 04 ,,, til Cr,,xtavottst lc M„• if : 0 ,4 4 11112a111 C alanaIIIM"rralltMlnIIIIMIIII $0 e . 40: ettlalliMINIMMINNIFMNSINEMOI 1 MinaeliMMIPOOMM 0, i, 04., ..„ 4 . . >! ..:lo t<,c- e*IP,,,,S4 rficom lOefavl Nr, ) Or Ort 1A,I,U.POMO, ''', ' • 'fr 4 Ca 11,41 1r itc 444 r !*,, .,:it I 117f., 44'4, '1, ' 4,.t., l', , I,, 11. , ).' i $41 _ ' c _ J et,,,m; rt44-4; WerTM, esegVc1•00, Ce, 41,0 1004.504,,im 11; . ....,, , II 1., : 'e.ietemplm ' 1147 ii e° V.,0 lemma 44 i Ma) 4S 24454 .4 ............, 4 .0 1 :4; 4 $ 4• 01 • TO.LtetV MD 2,3"0"nv Pagt 6 Rension a May.200 From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Thursday, June 06, 2013 5:54 PM To: David Buthman Cc: Luke Keller Subject: Paxton 5 Permit to Drill Application: Freshwater Depth Dave, Do you have information demonstrating that the proposed casing program in Paxton 5 will protect freshwater aquifers? Attached is your email for Susan Dionne 8. 4 • • Thanks, Steve Davies AOGCC From: Davies, Stephen F (DOA) Sent: Thursday, April 18, 2013 10:05 AM To: 'David Buthman' Subject: RE: Susan Dionne 8 PTD Application: Freshwater Depth Dave, Thanks for the information and for your help. Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 Fax: 907-276-7542 From: David Buthman [mailto:dbuthman@hilcorp.com] Sent: Wednesday, April 17, 2013 4:37 PM To: Davies, Stephen F (DOA) Subject: FW: Susan Dionne 8 PTD Application: Freshwater Depth Hi Steve, Per Luke's email, below,the following shows 1) a map of the water wells in the vicinity of the Dionnne 8 well proposal along with their depths in feet, and 2)the log of the Dionne 1 (which was originally the Union 1- Ninilchik well) showing the sonic, density, SP and total gas log for the shallow section indicating the saltiness of connate waters at various depths. If you need additional data or discussions please don't hesitate to contact me. Rgds, Dave David B. Buthman Senior Geologist Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 dbuthmanPhilcorp.com office: 907-777-8375 mobile: 907-854-4543 5 *.' f n -„-rig, • . s. k • i { • E � di, "'"---'ar «.a —" "'d tli amR+rp MntrfMurtweem mrs j • *2/2,,,--t".72—",. dam. 22 • 1 i. rh r '''' F • i .f 4 P.' _a'^, 7 Y 2 2 T e• • �y r ‘ ' �. F f ....._ _... W ._ of proposed Dionne 8 vi 6 •. • . • DI NE 1 12/2/1962 . : `" 14,946 • . : •: 'Sae"„..„. ice ... SALINITY 5. W CALCULATIONS: • • From Water Well. . . . . Map: water wells • • ,. T .. 3 -50-100' deep tit . . ; 477' sartid:•-1O SSP, : . ,-. . 7.14 Rw -650 ppm . • c Chlorides 85J' sand: -62 SSP, 1 .25 R -5600 ppm. a� Chlorides 1640' sand: -55 SSP, . w•aw . . 1.43 Rw -6.000 ppm. . g . r Chl -".- ,. . 1430' sand: -70 SSP, 1 a R + -7000 ppm From: Luke Keller Sent: Tuesday, April 16, 2013 1:42 PM To: Chris Kanyer; David Buthman Subject: FW: Susan Dionne 8 PTD Application: Freshwater Depth Chris/Dave, Could you help me with a reply back to Steve? He wants some info about useable ground water at Susan Dionne. I told him my justification for where I set surface pipe was based off the offset wellbores. He is looking for something else... Can you estimate potential FW depth at Susan Dionne? From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Tuesday, April 16, 2013 1:24 PM To: Luke Keller Subject: RE: Susan Dionne 8 PTD Application: Freshwater Depth I Luke, Could you please consult with your geoscience group and provide their opinion as to the depth to the base of freshwater within the Ninilchik Unit? Thanks, Steve Davies AOGCC From: Luke Keller [mailto:Ikeller©hilcorp.com] Sent: Monday, April 15, 2013 4:18 PM To: Davies, Stephen F (DOA) Subject: RE: Susan Dionne 8 PTD Application: Freshwater Depth Steve, Surface casing setting depths on the (7) offset wells drilled from the same pad are as follows: SD#1: 2046' MD/2042'TVD SD#2: 1927' MD/ 1575'TVD SD#3: 1971' MD/ 1656'TVD SD#4: 1851' MD/ 1541'TVD SD#5: 1630' MD/ 1298'TVD SD#6: 2031' MD/ 1580'ND SD#7: 1705' MD/ 1450'TVD Because all but one (SD#1)were set in the 1298'TVD to 1656'TVD range, I concluded that the maximum depth of potential freshwater zones must exist above 1500'TVD or these wells would not have been permitted. The most recent was SD#7 which was drilled in 2011. Hilcorp plans to set surface casing at 2611' MD/2541'TVD. The research I have done on this subject indicates that the surface casing setting depths were chosen more as a result of wellbore trajectory rather than a geographic selection. All surface casing setting depths coincide with the EOB and start of the tangent sections for each respective well. Luke Keller Drilling Engineer Hilcorp Alaska, LLC 907-777-8395 From: Davies, Stephen F (DOA) [ma ilto:steve.davies©alaska.gov] Sent: Monday, April 15, 2013 3:38 PM To: Luke Keller Subject: Susan Dionne 8 PTD Application: Freshwater Depth Luke, On page 7 of this application,you state: "All known potential fresh water zones exist above 1500'." Can Hilcorp please provide evidence to support this statement? Regards, 8 • • Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 Fax: 907-276-7542 9 • Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Thursday, June 06, 2013 5:54 PM To: 'dbuthman@hilcorp.com' Cc: 'Luke Keller' Subject: Paxton 5 Permit to Drill Application: Freshwater Depth Dave, Do you have information demonstrating that the proposed casing program in Paxton 5 will protect freshwater aquifers? Attached is your email for Susan Dionne 8. Thanks, Steve Davies AOGCC From: Davies, Stephen F (DOA) Sent: Thursday, April 18, 2013 10:05 AM To: 'David Buthman' Subject: RE: Susan Dionne 8 PTD Application: Freshwater Depth Dave, Thanks for the information and for your help. Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 Fax: 907-276-7542 From: David Buthman [mailto:dbuthman@hilcorp.com] Sent: Wednesday, April 17, 2013 4:37 PM To: Davies, Stephen F (DOA) Subject: FW: Susan Dionne 8 PTD Application: Freshwater Depth Hi Steve, Per Luke's email, below, the following shows 1) a map of the water wells in the vicinity of the Dionnne 8 well proposal along with their depths in feet, and 2)the log of the Dionne 1 (which was originally the Union 1- Ninilchik well) showing the sonic, density, SP and total gas log for the shallow section indicating the saltiness of connate waters at various depths. If you need additional data or discussions please don't hesitate to contact me. Rgds, Dave David B. Buthman Senior Geologist Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 1 • • dbuthman@hilcorp.com office: 907-777-8375 mobile: 907-854-4543 d ;4i y A e e u `^' ^ •_"�`! f jai 'Ab . '+xi5, - S ...,.. ,d S 3 E. lA s . . il f " A • ..•:/' a • o .. • . .. . — Y s - ,.m 1 • ss • a ,, A. r • . , r..,._� s i..' wa er.Vtide l.d+ pths.in /a . • of proposed mionne 81A 2 • • • • DIONNE 1 . • I 12/2/1962 .. ---4,,,,, • 33---153 - • 14,940 . • • • • • • . 33, . .. - .... .„. - ,,,,, , • ,3,33.,..1,113' ' . . ' + ""*.W., PI . • , '' • • IIMAISM=t . / • • ,_ . • • • • • • • '''' ' SALINITY t ... - CALCULATIONS: ,.. . ..,.. - 0 3 3.33 . . • • From Water Well . . I„..... , 3, 3 . Map: water wells •-•50-100deep • ' ' $ ‘3t. ,: 3 ' ' ' • 470' sand: -10 SSP, p j - (— ,, • 7.14 Rw -650 ppm • '-'-•-i 4' . . . . Chlorides • ' -=........,-1-7 o• -.3, "--7, • sand: -62 SSP, 750 1 .25 F -5000 ppm .... ,-. • Chlorides . • .1040' sand: -55 SSP, • 1 43.Rw -6000 ppm ..„ --- - 3 •,,,c-- 3 3 4 , pill a 1430' sand: -7.0 SSP, • ' • • - 8 • • 77".•-: •-' • • • • • • • • 110 Rw' —7000 ppm • ,.._ . . - ,.. -----, • Chl ---- -••-,-, _ - •;,..." -- 4 - ' ' '4"4"'4'- , , , j ' ' ."'' . . - - . . . . . . . . . . . From: Luke Keller Sent: Tuesday, April 16, 2013 1:42 PM To: Chris Kanyer; David Buthman Subject: FW: Susan Dionne 8 PTD Application: Freshwater Depth Chris/Dave, Could you help me with a reply back to Steve? He wants some info about useable ground water at Susan Dionne. I told him my justification for where I set surface pipe was based off the offset wellbores. He is looking for something else... Can you estimate potential FW depth at Susan Dionne? From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Tuesday, April 16, 2013 1:24 PM To: Luke Keller Subject: RE: Susan Dionne 8 PTD Application: Freshwater Depth 3 • • Luke, Could you please consult with your geoscience group and provide their opinion as to the depth to the base of freshwater within the Ninilchik Unit? Thanks, Steve Davies AOGCC From: Luke Keller [mailto:IkellerCa>hilcorp.com] Sent: Monday, April 15, 2013 4:18 PM To: Davies, Stephen F (DOA) Subject: RE: Susan Dionne 8 PTD Application: Freshwater Depth Steve, Surface casing setting depths on the (7)offset wells drilled from the same pad are as follows: SD#1: 2046' MD/2042'TVD SD#2: 1927' MD/ 1575'TVD SD#3: 1971' MD/ 1656'TVD SD#4: 1851' MD/ 1541'TVD SD#5: 1630' MD/ 1298'TVD SD#6: 2031' MD/1580'TVD SD#7: 1705' MD/ 1450'TVD Because all but one (SD#1)were set in the 1298'TVD to 1656'TVD range, I concluded that the maximum depth of potential freshwater zones must exist above 1500' TVD or these wells would not have been permitted. The most recent was SD#7 which was drilled in 2011. Hilcorp plans to set surface casing at 2611' MD/2541'TVD. The research I have done on this subject indicates that the surface casing setting depths were chosen more as a result of wellbore trajectory rather than a geographic selection. All surface casing setting depths coincide with the EOB and start of the tangent sections for each respective well. Luke Keller Drilling Engineer Hilcorp Alaska, LLC 907-777-8395 From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Monday, April 15, 2013 3:38 PM To: Luke Keller Subject: Susan Dionne 8 PTD Application: Freshwater Depth Luke, On page 7 of this application, you state: "All known potential fresh water zones exist above 1500'." Can Hilcorp please provide evidence to support this statement? Regards, 4 • • Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 Fax: 907-276-7542 5 Davies, Stephen F (DOA) From: Fisher, Samantha J (DOA) Sent: Thursday, May 30, 2013 12:55 PM To: (michael.j.nelson@conocophillips.com); AKDCWelllntegrityCoordinator; alaska@petrocalc.com; Alexander Bridge; Andrew VanderJack; Anna Raff; Barbara F Fullmer; bbritch; bbohrer@ap.org; Bill Penrose; Bill Walker; Bowen Roberts; Brian Havelock; caunderwood@marathonoil.com; Cliff Posey; Crandall, Krissell; D Lawrence; Dave Harbour; Dave Matthews; David Boelens; David Duffy; David House; David Scott; David Steingreaber; Davide Simeone; ddonkel@cfl.rr.com; Donna Ambruz; Dowdy, Alicia G (DNR); Dudley Platt; Elowe, Kristin; Francis S. Sommer; Gary Laughlin; schultz, gary (DNR sponsored); ghammons; Gordon Pospisil; Gorney, David L.; Greg Duggin; Gregg Nady; Gregory Geddes; gspfoff; Jdarlington (jarlington@gmail.com); Jeanne McPherren; Jones, Jeffery B (DOA); Jerry McCutcheon; Jim White; Jim Winegarner; Joe Lastufka; news@radiokenai.com; Burdick, John D (DNR); Easton, John R (DNR); John Evans; John Garing; Jon Goltz; Jones, Jeffrey L (GOV); Juanita Lovett; Judy Stanek; Houle, Julie (DNR); Julie Little; Kari Moriarty; Kaynell Zeman; Keith Wiles; Kelly Sperback; Gregersen, Laura S (DNR); Luke Keller; Marc Kovak; Mark Dalton; Mark Hanley (mark.hanley@anadarko.com); Mark P. Worcester; Kremer, Marguerite C (DNR); Michael Jacobs; Mike Bill; mike@kbbi.org; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; knelson@petroleumnews.com; Nick W. Glover; Nikki Martin; NSK Problem Well Supv; Patty Alfaro; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Pioneer; Randall Kanady; Randy L. Skillern; Randy Redmond; Rena Delbridge; Renan Yanish; Robert Brelsford; Robert Campbell; Ryan Tunseth; Sara Leverette; Scott Cranswick; Scott Griffith; Shannon Donnelly; Sharmaine Copeland; Sharon Yarawsky; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer; Moothart, Steve R (DNR); Steven R. Rossberg; Suzanne Gibson; sheffield@aoga.org; Tania Ramos; Ted Kramer; Davidson, Temple (DNR); Teresa Imm; Thor Cutler; Tim Mayers; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Vicki Irwin; Walter Featherly; yjrosen@ak.net; Aaron Gluzman; Aaron Sorrell; Bruce Williams; Bruno, Jeff J (DNR); Casey Sullivan; David Lenig; Donna Vukich; Eric Lidji; Erik Opstad; Franger, James M (DNR); Gary Orr; Smith, Graham 0 (PCO); Greg Mattson; Heusser, Heather A (DNR); James Rodgers; Jason Bergerson; Jennifer Starck;jill.a.mcleod@conocophillips.com; Jim Magill; Joe Longo; Jolie Pollet; King, Kathleen J (DNR); Laney Vasquez; Lara Coates; Lois Epstein; Louisiana Cutler; Marc Kuck; Steele, Marie C (DNR); Matt Gill; Ostrovsky, Larry (DNR sponsored); Bettis, Patricia K (DOA); Perrin, Don J (DNR); Peter Contreras; Pexton, Scott R (DNR); Pollard, Susan R (LAW); Richard Garrard; Ryan Daniel; Sandra Lemke; Talib Syed; Wayne Wooster; Woolf, Wendy C (DNR); William Hutto; William Van Dyke; Ballantine, Tab A(LAW); Bender, Makana K (DOA); Bettis, Patricia K(DOA); Brooks, Phoebe L (DOA); Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Ferguson, Victoria L (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Hunt, Jennifer L (DOA); Johnson, Elaine M (DOA); Laasch, Linda K (DOA); McIver, Bren (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Norman, John K(DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Singh, Angela K(DOA); Turkington, Jeff A (DOA); Wallace, Chris D (DOA) Subject: Paxton 5 Spacing Exception Public Hearing Notice Attachments: Paxton 5 Spacing Exception.pdf Samantha Fisher Executive Secretary II Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907) 793-1223 (phone) (907) 276-7542 (fax) 1 • I Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-13-07. The application of Hilcorp Alaska, LLC (Hilcorp) for an exception to the spacing requirements of 20 AAC 25.055(a)(2) to test and produce well Paxton No. 5 (Paxton 5) within 1500 feet of a property line where the owner and landowner are not the same on both sides of the line. Hilcorp by letter received May 21, 2013, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the spacing requirements of 20 AAC 25. 055(a)(2) to test and produce the Paxton 5 well within 1500 feet of a property line where the owner and landowner are not the same on both sides of the line. Paxton 5 Surface Location: 798' from the north line and 3019' from the east line of Section 13, T1S, R14W, Seward Meridian (S.M.) Top of Productive Interval Location: 656' from the north line and 2265' from the west line of Section 13,T1S,R14W, S.M. Bottomhole Location: 336' from the north line and 2274' from the west line of Section 13, T1S, R14W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for July 16, 2013 at 9:00 a.m. at 333 W. 7th Ave., Ste 100, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on June 25, 2013. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call 793-1221 after June 27, 2013. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 W. 7th Ave., Ste 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on July 11, 2013, except that, if a hearing is held, comments must be received no later than the conclusion of the July 16, 2013 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at 793-1221, no later than July 11,2013. Cathy . Foerster Chair, Commissioner • Davies, Stephen F (DOA) From: David Duffy[dduffy@hilcorp.com] Sent: Wednesday, May 29, 2013 8:26 AM To: Davies, Stephen F (DOA) Cc: Kevin Tabler Subject: RE: Paxton 5 Spacing Exception Attachments: Document.pdf Steve- Per your request, and in conformance with 20 AAC 25.055(d), Hilcorp has issued a supplemental notice to all owners and landowners (there are no other operators)within 3000' of the proposed PAX-5 exploratory well. The original mailing gave notice to all owners/landowners within 1500' of the well. A copy of the mailing list(and proof of certified mailing) is attached. If you need additional information regarding this spacing exception application, Hilcorp would be pleased to provide AOGCC with a technical briefing. Regards, David Duffy, Landman Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 100 Anchorage, Alaska 99503 Office: 907 777-8300 Direct: 907 777-8414 Fax: 907 777-8580 Cell: 907 301-2629 Email: dduffy@hilcorp.com This email may contain confidential and/or privileged information and is intended for the recipient(s)only. In the event you receive this message in error, please notify me and delete the message. From: Davies, Stephen F (DOA) Sent: Friday, May 24, 2013 12:43 PM To: 'David Duffy' Subject: Paxton 5 Spacing Exception David, At the bottom of the first page of Hilcorp's application for spacing exception for Paxton 5, is the sentence: "However, there a number of affected owners and landowners within 1500'of this plot..." Regulation 20 AAC 25.055 (d) requires notification of all owners, landowners, and operators of all properties within 3,000' of a well drilling for gas for which an exception is sought. Has Hilcorp notified all affected owners and landowners within 3000' of the proposed well? Are the names of those owners and landowners included in the list in Exhibit B of the application? Thanks, 1 • • Steve Davies AOGCC 907-793-1224 2 • • Davies, Stephen F (DOA) From: David Duffy[dduffy@hilcorp.com] Sent: Friday, May 24, 2013 2:42 PM To: Davies, Stephen F (DOA) Subject: RE: Paxton 5 Spacing Exception Steve- As to you second question below,the parcel is located within the unit. Per your other question regarding notice,you are correct. Our application plat and accompanying exhibit B lists the affected parties within 1500. However, for notice purposes, we are required to send certified notice to all owners/landowners within 3000'. I've assembled a new list of persons that will receive a copy of our application—but this mailing won't go out until Tuesday. Have a great weekend. David From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Friday, May 24, 2013 12:58 PM To: David Duffy Subject: FW: Paxton 5 Spacing Exception David, When you can,could you please provide copies of the certified mail receipts for all affected openers and landowners? I also noticed that the size of the parcel is only 33 acres, and that there are a number of nearby land parcels shown on the map shown in Exhibit A. Regulation 20 AAC 25.055(b) states: "(b)A well may not begin regular production of oil from a property that is smaller than the governmental quarter section upon which the well is located or begin regular production of gas from a property that is smaller than the governmental section upon which the well is located, unless the interests of the persons owning the drilling rights in and the right to share in the production from the quarter section or section, respectively, have been pooled under AS 31.05.100." How will the proposed Paxton 5 well meet this requirement? Thanks, Steve Davies AOGCC From: Davies, Stephen F (DOA) Sent: Friday, May 24, 2013 12:43 PM To: 'David Duffy' Subject: Paxton 5 Spacing Exception David, At the bottom of the first page of Hilcorp's application for spacing exception for Paxton 5, is the sentence: "However, there a number of affected owners and landowners within 1500'of this plot..." Regulation 20 AAC 25.055 (d) requires notification of all owners, landowners, and operators of all properties within 3,000' of a well drilling for gas for which an exception is sought. Has Hilcorp notified all affected owners and landowners III • within 3000'of the proposed well? Are t-he names of those owners and landowners included in the list in Exhibit B of the application? Thanks, Steve Davies AOGCC 907-793-1224 2 • • Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Friday, May 24, 2013 12:58 PM To: 'David Duffy' Subject: FW: Paxton 5 Spacing Exception David, When you can, could you please provide copies of the certified mail receipts for all affected openers and landowners? I also noticed that the size of the parcel is only 33 acres, and that there are a number of nearby land parcels shown on the map shown in Exhibit A. Regulation 20 AAC 25.055(b) states: "(b)A well may not begin regular production of oil from a property that is smaller than the governmental quarter section upon which the well is located or begin regular production of gas from a property that is smaller than the governmental section upon which the well is located, unless the interests of the persons owning the drilling rights in and the right to share in the production from the quarter section or section, respectively, have been pooled under AS 31.05.100." How will the proposed Paxton 5 well meet this requirement? Thanks, Steve Davies AOGCC From: Davies, Stephen F (DOA) Sent: Friday, May 24, 2013 12:43 PM To: 'David Duffy' Subject: Paxton 5 Spacing Exception David, At the bottom of the first page of Hilcorp's application for spacing exception for Paxton 5, is the sentence: "However, there a number of affected owners and landowners within 1500'of this plot..." Regulation 20 AAC 25.055 (d) requires notification of all owners, landowners, and operators of all properties within 3,000' of a well drilling for gas for which an exception is sought. Has Hilcorp notified all affected owners and landowners within 3000' of the proposed well? Are the names of those owners and landowners included in the list in Exhibit B of the application? Thanks, Steve Davies AOGCC 907-793-1224 1 1 • OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format. TRANSMITTAL LETTER CHECKLIST WELL NAME: l� /c84L_ PTD: 3 C' c7 c Development _Service v Exploratory _Stratigraphic Test _Non-Conventional • FIELD: /V <' �-�\/` Z, POOL: N<��' c "7' �C 1 l2d�d'7''�,c_d 61 S Check Box for Appropriate Letter/ Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI LATERAL The permit is for a new wellbore segment of existing well Permit (If last two digits No. , API No. 50- - - - . Production in API number are should continue to be reported as a function of the original API number stated between 60-69) above. In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the Pilot Hole pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - - ) from records, data and logs acquired for well. The permit is approved subject to full compliance with 20 AAC 25.055. Approval Spacing Exception to produce/ inject is contingent upon issuance of a conservation order approving Va spacing exception. (Company Name) Operator assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the Commission must be in no greater than Dry Ditch Sample 30' sample intervals from below the permafrost or fro where sampl/9s are fist caught and 10' sample intervals through target zones. (. ? (`/e,-)- Please note the following special condition of this permit: ° Production or production testing of coal bed methane is not allowed for(name of Non well) until after (Company Name) has designed and implemented a water well Conventional testing program to provide baseline data on water quality and quantity. Well (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Regulation 20 AAC 25.071(a) authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by (Company Name) in the attached application,the following well logs are also required for this well: Well Logging 1 ('' iI 1 - L/ 431' 17---a--n-(s Requirements � : f n Note that per Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. Revised 5/2013 • • D a 3 v N c rn O 0 a) a a) 0 3 o .o N- c : 0 0) >' 0 c C. I O L, LL: x OI , a) 2 cam to o u co: -a 'US W• (n a v 0 c 3' 0 E N L. g — co E O CT C6, f0: a E a) C U1: L: Oj: 4 : : L: C c' E co a) C co : �: : m: NI C �� fes, •W: V: �� = C O: "O: Ul >. cota i co a) O co: Q> .C. r, "O• co CO: N c CO 0 o a) rn: — `m 3: CO o •o �: �, YO 0 V c , C 3 0_ N m c. -o N: it 0, s: v+ 0 .° c: !� a) Z -p 0, .E E' O' 'd` �+: : �: E — c6 ° O. 0: O ° Y o: C W �: CO_ E E. �: < To x c 0 o O, o �: c: CO: ....,0 0.0? Qa CO E a: m , 0 I- Cn' a) ° a O O N C. 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O: .c °' a m `0: CO, a a0) o 0 �, ✓ c> a 0 �, � �' cn .- 0 0 a a c.) 5 ¢ a z O cn c.), c.) c.) 0, < '; ¢ o, m co 0, s', N 2 a, 0, in u) 0 ---, W d O N M V U) CO 1,- W 0) 0 N CO CO CO h CO 0) O N CO V CO CO IN- CO W b L— I E — N CO V CO CO 1� CO 0) X— X— N N N N N N N N N N CO CO CO CO CO CO CO CO CO CO I— M Co M N E O C r (N — O — (Ni 0 0 L0 0 D co a) D (O N O 0 `^ W o % in •E m in E /ry^�J J N •E a) C7 oo�.[ J it E c `8. cn 1 ° .- 0 U 'WKS HI a o C a ° 0 x 0) a Q W 0 • • Well History File APFENDX Infoinnation 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. RDT Pressure Transient Analysis Client: HILCORP ALASKA, LLC Well: PAXTON #5 Field: NINILCHIK Rig: SAXSON 147 Country: USA Logged: 9/24/13 Analyst: BILLY WYRICK Date: 09/25/13 Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 2 Table of Contents Table of Contents .......................................................................................................................................... 2 Overview ....................................................................................................................................................... 4 Log Header .................................................................................................................................................... 5 Tool String Diagram ...................................................................................................................................... 6 Test Summary ............................................................................................................................................... 7 Plots ............................................................................................................................................................ 11 Test No. 1.1; MD: 810.01 ft; TVD: 807.49 ft ............................................................................................ 11 Test No. 2.1; MD: 828.03 ft; TVD: 825.38 ft ............................................................................................ 12 Test No. 3.1; MD: 848.09 ft; TVD: 845.28 ft ............................................................................................ 13 Test No. 4.1; MD: 858.11 ft; TVD: 855.21 ft ............................................................................................ 14 Test No. 5.1; MD: 862.01 ft; TVD: 859.07 ft ............................................................................................ 15 Test No. 6.1; MD: 958.04 ft; TVD: 953.87 ft ............................................................................................ 16 Test No. 7.1; MD: 1532.12 ft; TVD: 1508.81 ft........................................................................................ 17 Test No. 8.1; MD: 1536.02 ft; TVD: 1512.56 ft........................................................................................ 18 Test No. 9.1; MD: 1538.97 ft; TVD: 1515.41 ft........................................................................................ 19 Test No. 10.1; MD: 1544.00 ft; TVD: 1520.26 ft...................................................................................... 20 Test No. 11.1; MD: 1547.01 ft; TVD: 1523.16 ft...................................................................................... 21 Test No. 12.1; MD: 1569.05 ft; TVD: 1544.40 ft...................................................................................... 22 Test No. 13.1; MD: 1572.02 ft; TVD: 1547.26 ft...................................................................................... 23 Test No. 14.1; MD: 1670.04 ft; TVD: 1642.34 ft...................................................................................... 24 Test No. 15.1; MD: 1673.01 ft; TVD: 1645.24 ft...................................................................................... 25 Test No. 16.1; MD: 1852.07 ft; TVD: 1821.05 ft...................................................................................... 26 Test No. 17.1; MD: 1897.10 ft; TVD: 1865.47 ft...................................................................................... 27 Test No. 18.1; MD: 1903.07 ft; TVD: 1871.36 ft...................................................................................... 28 Test No. 19.1; MD: 1909.00 ft; TVD: 1877.22 ft...................................................................................... 29 Test No. 20.1; MD: 1917.05 ft; TVD: 1885.16 ft...................................................................................... 30 Test No. 21.1; MD: 1920.02 ft; TVD: 1888.09 ft...................................................................................... 31 Test No. 22.1; MD: 1924.03 ft; TVD: 1892.05 ft...................................................................................... 32 Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 3 Test No. 23.1; MD: 2123.06 ft; TVD: 2088.14 ft...................................................................................... 33 Test No. 24.1; MD: 2128.99 ft; TVD: 2093.97 ft...................................................................................... 34 Test No. 25.1; MD: 2132.00 ft; TVD: 2096.93 ft...................................................................................... 35 Test No. 26.1; MD: 2140.02 ft; TVD: 2104.82 ft...................................................................................... 36 Test No. 27.1; MD: 2150.11 ft; TVD: 2114.75 ft...................................................................................... 37 Test No. 28.1; MD: 2170.01 ft; TVD: 2134.36 ft...................................................................................... 38 Test No. 29.1; MD: 2173.13 ft; TVD: 2137.42 ft...................................................................................... 39 Test No. 30.1; MD: 2184.01 ft; TVD: 2148.15 ft...................................................................................... 40 Test No. 31.1; MD: 2212.10 ft; TVD: 2175.84 ft...................................................................................... 41 Disclaimer.................................................................................................................................................... 42 Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 4 Overview At the request of HILCORP ALASKA, LLC, the RDT DPS tool was run in the PAXTON #5 well, NINILCHIK field, USA in a 6.75 IN hole for formation pressures and establishes gradients in various formations. Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 5 Log Header Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 6 Tool String Diagram Test Summary PRESSURE TEST SUMMARY Test Identification Hydrostatic Pres. Eq. Mud Wt. Test Pressures - Temperatures Test Times Remarks Test No. File No. MD (ft) TVD (ft) Phyds1 (psia) Phyds2 (psia) EqFmMw (lbs/gal) EqBhMw (lbs/gal) Psdd (psia) Pedd (psia) Pstop (psia) dPob (psia) Temp (degF) dTdd (sec) dTbu (sec) 1.1 3-34.1 810.01 807.49 428.41 428.40 7.19 10.20 302.71 226.77 302.00 126.40 62.40 10.27 76.68 Valid Test 2.1 3-3.1 828.03 825.38 438.92 438.88 7.21 10.23 309.34 296.29 309.27 129.61 65.60 4.99 57.19 Valid Test 3.1 3-33.1 848.09 845.28 446.73 447.77 6.68 10.19 585.23 196.59 293.60 154.17 63.80 7.77 196.85 Dry/Tight Test 4.1 3-32.1 858.11 855.21 452.67 452.76 5.96 10.18 745.34 215.46 265.08 187.68 62.00 3.01 143.61 Dry/Tight Test 5.1 3-31.1 862.01 859.07 454.77 454.77 4.88 10.18 501.22 204.42 217.96 236.81 61.90 3.00 49.54 Dry/Tight Test 6.1 3-4.1 958.04 953.87 504.88 504.81 7.35 10.18 364.80 336.31 364.79 140.02 64.60 10.01 79.80 Valid Test 7.1 3-5.1 1532.12 1508.81 790.85 790.94 8.22 10.08 642.27 424.30 644.99 145.95 67.70 10.25 351.39 Valid Test 8.1 3-7.1 1536.02 1512.56 792.90 793.04 8.37 10.08 686.85 205.15 658.66 134.38 67.90 18.00 676.85 Valid Test 9.1 3-6.1 1538.97 1515.41 794.32 794.43 8.77 10.08 714.77 318.02 690.71 103.72 68.00 3.25 138.50 Lost Seal 10.1 3-8.1 1544.00 1520.26 796.78 797.02 8.11 10.08 646.22 491.58 641.44 155.58 68.20 25.26 420.91 Valid Test 11.1 3-9.1 1547.01 1523.16 798.32 798.51 8.12 10.08 642.92 608.11 642.98 155.53 68.60 19.99 226.92 Valid Test 12.1 3-10.1 1569.05 1544.40 809.45 809.65 8.03 10.08 645.86 507.29 644.48 165.16 68.00 25.26 440.09 Valid Test 13.1 3-11.1 1572.02 1547.26 810.95 811.23 7.99 10.08 647.32 513.68 642.67 168.56 68.10 25.51 396.82 Valid Test 14.1 3-12.1 1670.04 1642.34 859.84 860.05 7.95 10.07 679.30 636.27 679.28 180.77 68.50 5.00 325.59 Valid Test 15.1 3-13.1 1673.01 1645.24 861.39 861.55 7.95 10.07 680.50 632.59 680.36 181.19 68.50 5.01 135.61 Valid Test 16.1 3-14.1 1852.07 1821.05 951.92 952.00 8.10 10.05 768.86 602.34 766.86 185.14 69.00 9.76 341.26 Valid Test 17.1 3-15.1 1897.10 1865.47 974.92 975.01 8.15 10.05 791.78 636.10 790.66 184.35 69.40 10.26 415.28 Valid Test 18.1 3-16.1 1903.07 1871.36 977.80 978.12 8.08 10.05 788.23 639.08 786.55 191.57 69.50 10.01 401.18 Valid Test 19.1 3-17.1 1909.00 1877.22 980.93 981.03 8.07 10.05 788.21 556.86 787.50 193.53 69.50 10.01 406.56 Valid Test 20.1 3-18.1 1917.05 1885.16 985.13 985.18 8.08 10.05 794.44 564.58 792.00 193.18 69.60 10.26 334.21 Valid Test 21.1 3-19.1 1920.02 1888.09 986.46 986.62 8.04 10.05 791.83 549.08 789.44 197.18 70.00 9.75 338.91 Valid Test 22.1 3-20.1 1924.03 1892.05 988.54 988.62 8.01 10.05 786.88 695.27 787.59 201.03 70.40 10.00 215.18 Valid Test 23.1 3-21.1 2123.06 2088.14 1089.44 1089.45 8.39 10.03 912.21 762.39 910.53 178.92 70.40 10.25 460.15 Valid Test 24.1 3-22.1 2128.99 2093.97 1092.26 1092.52 8.35 10.03 909.96 770.73 908.72 183.80 70.68 10.25 311.91 Valid Test 25.1 3-23.1 2132.00 2096.93 1093.86 1093.93 8.33 10.03 910.59 756.54 908.48 185.45 70.80 10.00 323.33 Valid Test 26.1 3-24.1 2140.02 2104.82 1097.85 1097.90 8.36 10.03 920.23 598.30 914.54 183.36 70.60 26.00 770.40 Valid Test 27.1 3-25.1 2150.11 2114.75 1102.76 1112.72 8.71 10.12 1048.42 508.47 958.30 154.42 70.70 12.01 622.33 Valid Test 28.1 3-26.1 2170.01 2134.36 1113.01 1113.17 8.33 10.03 934.53 567.75 924.00 189.17 70.90 30.00 591.66 Valid Test 29.1 3-27.1 2173.13 2137.42 1114.60 1114.83 8.18 10.03 910.43 772.46 909.24 205.59 71.10 20.01 250.66 Valid Test 30.1 3-28.1 2184.01 2148.15 1120.16 1120.32 8.14 10.03 908.29 789.23 909.18 211.14 71.60 129.75 211.25 Valid Test 31.1 3-29.1 2212.10 2175.84 1134.05 1134.51 8.05 10.03 912.45 777.87 911.25 223.26 71.30 20.03 209.86 Valid Test Legend: Phyds1: Initial Hydrostatic Pressure Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 8 PRESSURE TEST SUMMARY Test Identification Hydrostatic Pres. Eq. Mud Wt. Test Pressures - Temperatures Test Times Remarks Test No. File No. MD (ft) TVD (ft) Phyds1 (psia) Phyds2 (psia) EqFmMw (lbs/gal) EqBhMw (lbs/gal) Psdd (psia) Pedd (psia) Pstop (psia) dPob (psia) Temp (degF) dTdd (sec) dTbu (sec) Phyds2: Final Hydrostatic Pressure EqFmMw:Equivalent Formation Mud Weight (Pstop / (TVD * Constant)) EqBhMw: Equivalent Borehole Mud Weight (Phyds2 / (TVD * Constant)) Psdd: Initial Drawdown Pressure Pedd: Final Drawdown or End Drawdown Pressure Pstop: Final Buildup Pressure Temp: Final Temperature dTdd= Tedd-Tsdd: Tedd - End of Drawdown Time; Tsdd - Initial Drawdown Time dTbu=Tstop - Tedd:Buildup Time, Tedd - End of Drawdown Time, Tstop - Final Buildup Time dPob= Phyds2 - Pstop: Over Balance Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 9 PRESSURE TRANSIENT SUMMARY Test Identification Buildup Stability PTA Pressure PTA Mobilities Remarks Test No. File No. MD (ft) TVD (ft) Stability (psia/min) Stability (degF/min) Pexact (psia) Pstdev (psia) Mexact (md/cp) Msdd (md/cp) 1.1 3-34.1 810.01 807.49 -0.007 302.00 0.01 47.3 47.3 Valid Test 2.1 3-3.1 828.03 825.38 0.014 309.27 0.01 262 262 Valid Test 3.1 3-33.1 848.09 845.28 10.758 -0.077 298.69 3.13 0.395 3.72 Dry/Tight Test 4.1 3-32.1 858.11 855.21 2.806 265.38 0.89 2.19 21.7 Dry/Tight Test 5.1 3-31.1 862.01 859.07 11.881 219.84 1.03 21.1 200 Dry/Tight Test 6.1 3-4.1 958.04 953.87 0.077 364.79 0.04 130 130 Valid Test 7.1 3-5.1 1532.12 1508.81 0.339 644.99 2.28 0.832 1.62 Valid Test 8.1 3-7.1 1536.02 1512.56 0.207 658.67 3.24 0.108 0.377 Valid Test 9.1 3-6.1 1538.97 1515.41 60.773 721.73 10.76 0.126 2.34 Lost Seal 10.1 3-8.1 1544.00 1520.26 0.043 641.44 1.49 2.32 2.51 Valid Test 11.1 3-9.1 1547.01 1523.16 0.081 642.98 0.63 27.0 27.1 Valid Test 12.1 3-10.1 1569.05 1544.40 0.046 644.48 0.83 2.20 2.74 Valid Test 13.1 3-11.1 1572.02 1547.26 0.181 642.67 0.68 2.67 2.86 Valid Test 14.1 3-12.1 1670.04 1642.34 0.009 679.27 0.05 40.1 40.2 Valid Test 15.1 3-13.1 1673.01 1645.24 0.038 680.36 0.06 35.4 35.4 Valid Test 16.1 3-14.1 1852.07 1821.05 0.073 766.86 0.59 4.95 5.73 Valid Test 17.1 3-15.1 1897.10 1865.47 0.060 790.66 0.66 1.85 2.35 Valid Test 18.1 3-16.1 1903.07 1871.36 0.054 786.55 0.85 1.72 2.51 Valid Test 19.1 3-17.1 1909.00 1877.22 0.086 787.50 1.52 0.998 1.61 Valid Test 20.1 3-18.1 1917.05 1885.16 0.217 792.00 0.87 1.31 1.60 Valid Test 21.1 3-19.1 1920.02 1888.09 0.108 789.44 0.67 1.25 1.50 Valid Test 22.1 3-20.1 1924.03 1892.05 0.113 787.59 0.46 9.72 9.75 Valid Test 23.1 3-21.1 2123.06 2088.14 0.182 910.54 1.23 1.29 2.48 Valid Test 24.1 3-22.1 2128.99 2093.97 0.199 -0.026 908.72 0.87 4.78 6.62 Valid Test 25.1 3-23.1 2132.00 2096.93 0.114 908.48 0.96 3.57 6.04 Valid Test 26.1 3-24.1 2140.02 2104.82 0.333 914.54 3.70 0.369 1.17 Valid Test 27.1 3-25.1 2150.11 2114.75 0.345 958.31 6.81 0.154 0.798 Valid Test 28.1 3-26.1 2170.01 2134.36 0.463 924.00 6.47 0.271 0.501 Valid Test 29.1 3-27.1 2173.13 2137.42 0.177 909.24 0.90 6.07 6.92 Valid Test 30.1 3-28.1 2184.01 2148.15 0.231 909.18 0.78 1.23 1.23 Valid Test 31.1 3-29.1 2212.10 2175.84 0.222 911.25 0.70 7.09 7.09 Valid Test Legend: Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 10 PRESSURE TRANSIENT SUMMARY Test Identification Buildup Stability PTA Pressure PTA Mobilities Remarks Test No. File No. MD (ft) TVD (ft) Stability (psia/min) Stability (degF/min) Pexact (psia) Pstdev (psia) Mexact (md/cp) Msdd (md/cp) Pexact: Projected formation pressure based on exact model. Pstdev: Standard deviation of actual pressures from exact model Mexact: Spherical Mobility based on exact model Msdd: Spherical Drawdown Mobility Plots Test No. 1.1; MD: 810.01 ft; TVD: 807.49 ft RDT Test File # 3-34.1 Date: 25-Sep-13 06:05:58 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 810.01 807.49 226.77 302.00 302.00 47.3 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 9.42 0.92 0.32 0.25 5.74e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.01 -0.01 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 12 Test No. 2.1; MD: 828.03 ft; TVD: 825.38 ft RDT Test File # 3-3.1 Date: 24-Sep-13 20:19:53 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 828.03 825.38 296.29 309.27 309.27 262 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 8.77 1.76 0.65 0.25 5.81e-004 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.01 0.01 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 13 Test No. 3.1; MD: 848.09 ft; TVD: 845.28 ft RDT Test File # 3-33.1 Date: 25-Sep-13 05:59:16 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 848.09 845.28 196.59 293.60 298.69 0.395 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 1.45 0.19 0.65 0.25 4.60e-006 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 3.13 10.76 -0.08 REMARKS Dry/Tight Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 14 Test No. 4.1; MD: 858.11 ft; TVD: 855.21 ft RDT Test File # 3-32.1 Date: 25-Sep-13 05:49:39 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 858.11 855.21 215.46 265.08 265.38 2.19 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 1.67 0.56 0.65 0.25 7.71e-006 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.89 2.81 0.00 REMARKS Dry/Tight Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 15 Test No. 5.1; MD: 862.01 ft; TVD: 859.07 ft RDT Test File # 3-31.1 Date: 25-Sep-13 05:38:25 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 862.01 859.07 204.42 217.96 219.84 21.1 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 4.20 1.40 0.65 0.25 2.46e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 1.03 11.88 0.00 REMARKS Dry/Tight Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 16 Test No. 6.1; MD: 958.04 ft; TVD: 953.87 ft RDT Test File # 3-4.1 Date: 24-Sep-13 20:31:19 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 958.04 953.87 336.31 364.79 364.79 130 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 19.23 1.92 0.65 0.25 3.98e-004 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.04 0.08 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 17 Test No. 7.1; MD: 1532.12 ft; TVD: 1508.81 ft RDT Test File # 3-5.1 Date: 24-Sep-13 20:50:05 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1532.12 1508.81 424.30 644.99 644.99 0.832 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 1.89 0.18 0.65 0.25 1.75e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 2.28 0.34 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 18 Test No. 8.1; MD: 1536.02 ft; TVD: 1512.56 ft RDT Test File # 3-7.1 Date: 24-Sep-13 21:13:57 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1536.02 1512.56 205.15 658.67 658.67 0.108 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 1.58 0.09 0.65 0.25 4.52e-006 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 3.24 0.21 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 19 Test No. 9.1; MD: 1538.97 ft; TVD: 1515.41 ft RDT Test File # 3-6.1 Date: 24-Sep-13 21:05:05 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1538.97 1515.41 318.02 690.71 721.73 0.126 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 0.73 0.22 0.32 0.25 4.26e-006 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 10.76 60.77 0.00 REMARKS Lost Seal Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 20 Test No. 10.1; MD: 1544.00 ft; TVD: 1520.26 ft RDT Test File # 3-8.1 Date: 24-Sep-13 21:45:15 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1544.00 1520.26 491.58 641.44 641.44 2.32 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 4.90 0.19 0.65 0.25 2.05e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 1.49 0.04 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 21 Test No. 11.1; MD: 1547.01 ft; TVD: 1523.16 ft RDT Test File # 3-9.1 Date: 24-Sep-13 22:08:41 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1547.01 1523.16 608.11 642.98 642.98 27.0 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 9.74 0.49 0.65 0.25 1.43e-004 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.63 0.08 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 22 Test No. 12.1; MD: 1569.05 ft; TVD: 1544.40 ft RDT Test File # 3-10.1 Date: 24-Sep-13 22:22:17 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1569.05 1544.40 507.29 644.48 644.48 2.20 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 4.90 0.19 0.65 0.25 6.29e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.83 0.05 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 23 Test No. 13.1; MD: 1572.02 ft; TVD: 1547.26 ft RDT Test File # 3-11.1 Date: 24-Sep-13 22:44:35 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1572.02 1547.26 513.68 642.67 642.67 2.67 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 4.85 0.19 0.65 0.25 3.43e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.68 0.18 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 24 Test No. 14.1; MD: 1670.04 ft; TVD: 1642.34 ft RDT Test File # 3-12.1 Date: 24-Sep-13 23:10:52 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1670.04 1642.34 636.27 679.27 679.27 40.1 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 4.46 0.89 0.65 0.25 1.06e-004 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.05 0.01 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 25 Test No. 15.1; MD: 1673.01 ft; TVD: 1645.24 ft RDT Test File # 3-13.1 Date: 24-Sep-13 23:27:29 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1673.01 1645.24 632.59 680.36 680.36 35.4 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 4.37 0.87 0.65 0.25 6.81e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.06 0.04 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 26 Test No. 16.1; MD: 1852.07 ft; TVD: 1821.05 ft RDT Test File # 3-14.1 Date: 24-Sep-13 23:41:41 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1852.07 1821.05 602.34 766.86 766.86 4.95 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 4.74 0.49 0.65 0.25 4.08e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.59 0.07 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 27 Test No. 17.1; MD: 1897.10 ft; TVD: 1865.47 ft RDT Test File # 3-15.1 Date: 25-Sep-13 00:05:15 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1897.10 1865.47 636.10 790.66 790.66 1.85 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 1.92 0.19 0.65 0.25 1.84e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.66 0.06 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 28 Test No. 18.1; MD: 1903.07 ft; TVD: 1871.36 ft RDT Test File # 3-16.1 Date: 25-Sep-13 00:31:15 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1903.07 1871.36 639.08 786.55 786.55 1.72 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 1.91 0.19 0.65 0.25 2.21e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.85 0.05 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 29 Test No. 19.1; MD: 1909.00 ft; TVD: 1877.22 ft RDT Test File # 3-17.1 Date: 25-Sep-13 00:51:35 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1909.00 1877.22 556.86 787.50 787.50 0.998 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 1.91 0.19 0.65 0.25 1.61e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 1.52 0.09 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 30 Test No. 20.1; MD: 1917.05 ft; TVD: 1885.16 ft RDT Test File # 3-18.1 Date: 25-Sep-13 01:15:05 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1917.05 1885.16 564.58 792.00 792.00 1.31 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 1.92 0.19 0.65 0.25 1.21e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.87 0.22 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 31 Test No. 21.1; MD: 1920.02 ft; TVD: 1888.09 ft RDT Test File # 3-19.1 Date: 25-Sep-13 01:34:15 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1920.02 1888.09 549.08 789.44 789.44 1.25 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 1.81 0.19 0.65 0.25 1.21e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.67 0.11 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 32 Test No. 22.1; MD: 1924.03 ft; TVD: 1892.05 ft RDT Test File # 3-20.1 Date: 25-Sep-13 01:50:34 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 1924.03 1892.05 695.27 787.59 787.59 9.72 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 4.64 0.46 0.65 0.25 3.52e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.46 0.11 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 33 Test No. 23.1; MD: 2123.06 ft; TVD: 2088.14 ft RDT Test File # 3-21.1 Date: 25-Sep-13 02:06:57 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 2123.06 2088.14 762.39 910.54 910.54 1.29 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 1.94 0.19 0.65 0.25 3.01e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 1.23 0.18 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 34 Test No. 24.1; MD: 2128.99 ft; TVD: 2093.97 ft RDT Test File # 3-22.1 Date: 25-Sep-13 02:28:02 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 2128.99 2093.97 770.73 908.72 908.72 4.78 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 4.83 0.47 0.65 0.25 6.66e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.87 0.20 -0.03 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 35 Test No. 25.1; MD: 2132.00 ft; TVD: 2096.93 ft RDT Test File # 3-23.1 Date: 25-Sep-13 02:43:48 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 2132.00 2096.93 756.54 908.48 908.48 3.57 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 4.73 0.47 0.65 0.25 6.23e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.96 0.11 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 36 Test No. 26.1; MD: 2140.02 ft; TVD: 2104.82 ft RDT Test File # 3-24.1 Date: 25-Sep-13 03:02:45 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 2140.02 2104.82 598.30 914.54 914.54 0.369 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 4.94 0.19 0.65 0.25 2.88e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 3.70 0.33 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 37 Test No. 27.1; MD: 2150.11 ft; TVD: 2114.75 ft RDT Test File # 3-25.1 Date: 25-Sep-13 03:38:18 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 2150.11 2114.75 508.47 958.31 958.31 0.154 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 2.22 0.19 0.65 0.25 9.96e-006 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 6.81 0.35 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 38 Test No. 28.1; MD: 2170.01 ft; TVD: 2134.36 ft RDT Test File # 3-26.1 Date: 25-Sep-13 04:02:22 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 2170.01 2134.36 567.75 924.00 924.00 0.271 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 2.76 0.09 0.65 0.25 7.61e-006 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 6.47 0.46 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 39 Test No. 29.1; MD: 2173.13 ft; TVD: 2137.42 ft RDT Test File # 3-27.1 Date: 25-Sep-13 04:31:14 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 2173.13 2137.42 772.46 909.24 909.24 6.07 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 9.77 0.49 0.65 0.25 7.18e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.90 0.18 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 40 Test No. 30.1; MD: 2184.01 ft; TVD: 2148.15 ft RDT Test File # 3-28.1 Date: 25-Sep-13 04:46:13 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 2184.01 2148.15 789.23 909.18 909.18 1.23 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 9.86 0.08 0.65 0.25 1.40e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.78 0.23 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 41 Test No. 31.1; MD: 2212.10 ft; TVD: 2175.84 ft RDT Test File # 3-29.1 Date: 25-Sep-13 05:01:54 EXACT PRESSURE / TIME PLOT SUMMARY MD (ft) TVD (ft) Pedd (psia) Pstop (psia) Pexact (psia) Mexact(md/cp) 2212.10 2175.84 777.87 911.25 911.25 7.09 CONSTANTS - SPHERICAL FLOW Volume (cc) Rate (cc/sec). Rsnorkel (in) Porosity (fraction) Ct (1/psia) Flow-line Storage (cc) 9.76 0.49 0.65 0.25 2.72e-005 180.00 TEST CONDITIONS & STATUS +/- stdev (psia) Stability (psi/min). Stability (deg/min). Pump Status Exposure Time (hr). Tool Face (deg). 0.70 0.22 0.00 REMARKS Valid Test Houston Technology Center 3000 N. Sam Houston Pkwy E., Houston, TX 77032 26 September 2013 Confidential Page 42 Disclaimer DATA, RECOMMENDATIONS, INTERPRETATIONS LIMITATIONS Because of the uncertainty of variable well conditions the necessity of relying on facts and supporting services furnished by others, Halliburton IS UNABLE TO GUARANTEE THE EFFECTIVENESS OF THE PRODUCTS, SUPPLIES OR MATERIALS, NOR THE RESULTS OF ANY TREATMENT OR SERVICE, NOR THE ACCURACY OF ANY CHART INTERPRETATION, RESEARCH ANALYSIS, JOB RECOMMENDATION OR OTHER DATA FURNISHED BY Halliburton. Halliburton personnel will use their best efforts in gathering such information and their best judgment in interpreting it, but Customer agrees that Halliburton shall not be liable for and Customer SHALL RELEASE, DEFEND AND INDEMNIFY Halliburton against any damages or liability arising from the use of such information even if such damages are contributed to or caused by the negligence, fault or strict liability of Halliburton. Paxton #5 Ninilchik Unit Kenai Borough, Alaska September 16 – September 27, 2013 Provided by: Approved by: David Buthman Compiled by: James Foradas Mike Strawn Distribution Date: 11/27/2013 Paxton #5 2 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT & CREW ................................................................................................3 1.1 Equipment Summary ......................................................................................................................3 1.2 Crew................................................................................................................................................3 2 GENERAL WELL DETAILS...................................................................................................................4 2.1 Well Objectives...............................................................................................................................4 2.2 Well Resume ..................................................................................................................................4 2.3 Hole Data........................................................................................................................................5 2.4 Daily Activity Summary...................................................................................................................5 3 GEOLOGICAL DATA.............................................................................................................................7 3.1 Lithostratigraphy .............................................................................................................................7 3.2 Lithologic Details.............................................................................................................................7 3.3 Sampling Program........................................................................................................................11 4 DRILLING DATA..................................................................................................................................12 4.1 Surveys.........................................................................................................................................12 4.2 Bit Record.....................................................................................................................................14 4.3 Mud Record ..................................................................................................................................15 4.4 Drilling Progress Chart..................................................................................................................16 5 DAILY DRILLING REPORTS...............................................................................................................17 Enclosures 5” / 100’ Formation Log (MD/TVD) 2” / 100’ Formation Log (MD/TVD) 2” / 100’ LWD Combo Log (MD/TVD) 2” / 100’ Drilling Dynamics Log (MD/TVD) 2” / 100’ Gas Ratio Log (MD/TVD) Final Data CD Paxton #5 3 1 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary Parameter Equipment Type /Position Total Downtime Comments Computer – Driller’s Monitor Azonics 1.0 hours Rigwide power failure (RWPF) Computer -- Pit Monitor Pason Sidekick 1.0 hours RWPF Computer -- Company Man Pason EDR 1.0 hours RWPF Computer – Directional Driller Pason EDR 1.0 hours RWPF Computer – Tool Pusher Pason EDR 1.0 hours RWPF Computer – Mud Engineer Pason EDR 1.0 hours RWPF Computers – Mudloggers (4) RigWatch Master, DML, RigWatch Remote, WITS Feed from Pason 1.0 hours RWPF Ditch gas QGM gas trap; Flame ionization total gas & chromatography. 1.0 hours RWPF Hook Load /Weight on bit WITS from Pason 1.0 hours RWPF Mud Flow In Derived from Strokes/Minute and Pump Output 1.0 hours RWPF Mud Flow Out WITS from Pason 1.0 hours RWPF Pit Volumes, Pit Gain/Loss WITS from Pason 1.0 hours RWPF Pump Pressure WITS from Pason 1.0 hours RWPF Pump Stroke Counters (2) WITS from Pason 1.0 hours RWPF Rate of Penetration Calculated from Pason 1.0 hours RWPF RPM WITS from Pason 1.0 hours RWPF Torque WITS from Pason 1.0 hours RWPF WITS—To/ From Pason RigWatch Remote (HP Compaq) 1.0 hours RWPF 1.2 Crew Mud Logging Unit Type: Arctic Mud Logging Unit Number: ML057 Mud Loggers Years1 Days2 Sample Catchers Years Days2 Technician Days2 James Foradas 6 15 Kirk Wallander 5 9 Michael Strawn 7 11 Jane Grundin 0.5 9 Britten Adams 2 4 *1 Years experience as Mudlogger *2 Days at wellsite between rig up and rig down of logging unit. Paxton #5 4 2 GENERAL WELL DETAILS 2.1 Well Objectives Paxton #5 is a shallow pool exploratory well on the crest of the Paxton structural closure. It is above the Paxton PA, is above all currently productive reservoirs and hence is classified as an exploratory well. It will test numerous Upper Beluga and Lower Sterling objectives logged in the Paxton 3 and Paxton 4 wells. In keeping with the original objective of this project, Paxton #5 is a 2618' MD Beluga gas well. 2.2 Well Resume Operator: Hilcorp Alaska, LLC (Hilcorp Energy Company) Well Name: Paxton #5 Field: Ninilchik Unit County: Kenai Borough State: Alaska Company Representatives: Mike Leslie, Bob Farrell, Zane Montague, Doug Yessak Location: Surface Coordinates 798’ FNL, 3019’ FEL, Sec. 13, T1S, R14W, SM, AK Ground Elevation 148’ AMSL Rotary Table Elevation 171’ AMSL (23’ AGL) Classification: Exploration API #: 50-133-20614-00-00 Permit #: 213-075 Rig Name/Type: Saxon 147/Land Double Spud Date September 16, 2013 Total Depth Date: September 24, 2013 Total Depth 2,617’ MD/2573’ TVD Primary Targets Lower Sterling/Upper Beluga Primary Target Depths 850’ – 2350’MD Total Depth Formation: Beluga Completion Status: Run 4.5” Liner to 2612’. LWD-MWD Services. Schlumberger Directional Drilling Schlumberger Wireline Logging Services Halliburton Drilling Fluids Service M.I. Swaco CANRIG Logging Geologists: James Foradas, Michael Strawn, Britten Adams CANRIG Sample Catchers: Kirk Wallander, Jane Grundin Paxton #5 5 2.3 Hole Data Maximum Depth Shoe Depth Hole Section MD (ft) TVD (ft) TD Formation Mud Weight (ppg) Dev. (oinc) Casing Diam. MD (ft) TVD (ft) LOT (ppg) Conductor 96’ 96’ Sterling 0.0 0.00 10-3/4” 96’ 96’ N/A 9-7/8” 793’ 793’ Sterling A 9.4 0.00 7-5/8” 780’ 780’ N/A 6-3/4” 2617’ 2568’ Beluga 9.7 12.8 4-1/2” 2612’ 2568’ N/A 2.4 Daily Activity Summary September 16, 2013: Rigging up logging unit, pick up pipe, work on riser and 4" nipple on conductor, rig up flow line, pre-spud inspection, function test annular, knife valve, pick up BHA#1, adjust torque tube to hole center, test standpipe, pick up BHA and scribe motor, slide drill from 96' to 106', rotary drill from 106' to 128'. No gas last 24 hours. September 17, 2013: Rotary drill from 128’ to 142’, circulate and clean hole, rotate from 142’ to 204’, pump sweep circulate and clean hole, service rig, pull out of hole 2 stands and pick up rest of BHA, wash and ream from 115’ to 204’ picking up monel float sub and hydraulic jars, rotate from 204’ to 396’, slide from 396’ to 425’, rotate from 425’ to 459’, slide from 459’ to 486’, rotate from 486’ to 545’, trouble shoot MWD interference, rotate from 545’ to 793’, circulate and clean hole, pull out of hole to BHA and trip in hole to 793’ on wiper trip washing last stand down, circulate bottoms up and pump sweep. Max gas last 24 hours 72 units circulating @ 793'. September 18, 2013: Pump slug and pull out of hole to BHA, work BHA, service rig, move casing to make room for logging truck, rig up wireline loggers, run wireline logs and rig down wireline tools, pick up BHA#2, trip in hole to 740’, wash from 740’ to 793’, circulate and pump high vis sweep, pump out of hole to 370’, trip in hole to 793’, circulate and work pipe, pull out of hole to BHA, lay down BHA, rig down 4.5” handling equipment and pull wear ring, service rig and rig up casing equipment. Max Gas last 24 hours 7 units trip gas. September 19, 2013: Run 7.625” casing to 780’, circulate and clean hole prior to cement job, rig up cement crew, cement 7.625” casing set @ 780’, rig down cementers, back out landing joint install pack off and pressure test, nipple down diverter system, rig up and run wireline, rig down wireline, finish nippling down diverter system, clean cellar and currently cutting for piping to cement. Max gas last 24 hours 3 units circulating to clean hole @ 780'. September 20, 2013: Rig up cement crew and service rig, attempt to string 1.25” pipe for cement too tight used 0.75” hose, cement, rig down cement crew, nipple up BOPs. September 21, 2013: Nipple up BOP’s, rig up test equipment, test BOP’s, rig down test equipment, align valves for drilling, pick up BHA#3, trip in hole to 692’ and tagged cement, displaced casing with new mud, pressure test casing, service rig, start drilling shoe from 692’ to 695’. Max gas last 24 hours 0 units. Paxton #5 6 September 22, 2013: Drill shoe and 20’ of formation to 813’, perform fit, drilling ahead sliding as needed to maintain vector from 813’ to 1442’, service rig, drilling ahead sliding as needed from 1442’ to 1839’ MD. Max gas last 24 hours 204 units at 1549' MD. September 23, 2013: Drilling ahead sliding as needed to maintain vector from 1839’ to 2436’, make short trip back reaming to shoe, trip in hole to bottom and drilling ahead from 2436’ to 2483’ MD at report time. Max gas last 24 hours 102 units @ 2135'. September 24, 2013: Drilling ahead from 2483’ to 2617’ MD, circulate and pump sweeps to clean hole, pull out of hole, lay down BHA, clean floor, rig up wireline, run wireline logs. Max gas last 24 hours 17 units @ 2520'. September 25, 2013: Wireline logs and, POOH with logging equipment. L/D logging equipment. Rig service. P/U and M/U BHA. TIH from 705’-2618’ MD. Condition mud and circulate @2618’ MD. POOH 2618’ MD and L/D 4.5” drill pipe to 705’ MD. L/D BHA and clean rig floor. P/U cement head and rack back. R/U casing. September 26, 2013: Run casing to 1997’ MD. P/U hanger fill liner tieback sleeve with pal mix. TIH casing to 2595’ MD. Latch cement stand and tag @ 2612’ MD and circulate. Continue to circulate while R/U cements equipment. PJSM with cement crew. Mix mud push. Test lines with 5BBL of water. Pump 30BBLS of mud push. Mix and pimp 75BBLS (12.5PPG cement). Drop plug at (15:31) with 2700PSI. Displace with 33.9BBLS. Set liner hanger, pressure up-tool and release at 3800PSI. R/D cement equipment flush threw lines. L/D cements head, L/D HWDP, L/D Baker tools, and R/U wireline. September 27, 2013: Strap and tally 2 7/8” TBG. Get ID and OD on scrapers. Run in hole with tandem scraper brush assembly to 2522’ MD. Tag landing collar at 2522’ MD displace with water per mud man. Paxton #5 7 3 GEOLOGICAL DATA 3.1 Lithostratigraphy Prognosed and observed tops were provided by Hilcorp geologist David Buthman based on the results of wireline logging operations. PROGNOSED OBSERVED FORMATION MD (ft) TVD (ft) SSTVD (ft) MD (ft) TVD (ft) SSTVD (ft) Lower Sterling A 927 -756 956 952 -781 Top Beluga Fmn 1347 -1176 1502 1480 -1309 Top Beluga 45 1887 1863 -1692 1897 1865 -1694 Top Beluga 50 2059 1888 2117 2082 -1911 Top Beluga 50A-C* - - - 2218 2181 -2010 Total Depth* 2403 2371 -2200 2618 2573 -2402 • Note the decision to extend TD through the Beluga 50A, B, and C sands was made during active drilling operations. 3.2 Lithologic Details Full service mudlogging initiated after surface casing set at 780’ MD/780’ TVD. Above this interval lithology included claystone, siltstone, sandstone, sands, and thin coals of the Sterling formation as identified by spot samples which were not collected or curated as part of this project. Sample descriptions provided by Canrig after drilling out of cemented surface casing follow: Sandstone (795' - 830') = pale gray, hard crunchy tenacity; nodular cuttings habit; irregular fracture; medium to small angular to sub-angular poorly sorted quartz grains in a silty matrix; gritty texture; vitreous luster; poor visual porosity. Sandstone (830' - 870') = pale gray, hard crunchy tenacity; nodular cuttings habit; irregular fracture; medium to small angular to sub-angular poorly sorted quartz grains in a silty matrix; some shaley clasts and trace pyrite present; gritty texture; vitreous luster; poor visual porosity. Siltstone (870'-910') = gray, soft/firm crumbly tenacity; nodular to wedge-like cuttings habit; irregular fracture; massive bedded structure with some shaley and sandy clasts; slightly gritty to silty texture; earthy Paxton #5 8 luster. Sandstone (910' - 950') = pale gray, hard crunchy tenacity; nodular cuttings habit; irregular fracture; medium to small angular to sub-angular poorly sorted quartz grains in a silty matrix; some shaley clasts present; gritty texture; vitreous luster; poorly consolidated. Sandstone (950' - 1070') = medium gray with light greenish and gray hues; very fine to lower very coarse grained; very poor to somewhat fair sorted; angular to rounded; very low to moderate sphericity, better in fine textures; common frosting and polish and other signs of mechanical abrasion; unconsolidated to soft with some firmer cuttings; some cement; grain supported; texturally and compositionally immature; composed predominantly of quartz with common volcanics, quartzite, greenstone, pink buff, and white finer lithics likely derived from weathering of feldspathic igneous and metamorphic rocks; trace ash and micas; traces of possible kaolin cement on some grain surfaces; mild to moderate reaction to HCl suggesting some calcite cement also present; occurring as thin to massive beds interbedded with thin coal stringers; intergrading to siltstone; fining downward, with silty matrix more abundant lower in interval. Siltstone (990' - 1140') = medium gray with light greenish and gray hues; crumbly to pulverulent; irregular blocky fracture; tabular to wedge-like cuttings habit; dull earthy to slightly waxy luster; clayey to abrasive texture depending on very fine sand content; overall thin structure with some banding and carbonaceous laminae; intergrading with finer sandstone and claystone; interbeds with thin shales and coals. Sandstone (1140' - 1200') = medium gray with light to pale gray hues; upper very fine to upper medium; poor to fair sorted; angular to rounded; low to moderate sphericity; common polish and frosting; unconsolidated to soft with some firmer cuttings; some cement; grain supported with little to common silty clay matrix; composition as above sandstone; interbedded with coal; and frequently intergrading to siltstone and claystone of similar color and composition; slightly to moderately calcareous; generally occurring in thin beds with thin beds with other rocks. Claystone (1120' - 1280') = medium gray with light and dark gray hues; curdy; adhesive; crunchy to malleable; irregular to fine blocky fracture; tabular to nodular cuttings habit; dull earthy becoming micro sparkling where grading to gritty siltstone and very fine to fine grained matrix supported sandstone; textures range from smooth to gritty; thin to massive structure; interbedded with brownish black low grade coal that is off gassing in places; intergrades with siltstone and thin sandstones; trace to slightly calcareous. Siltstone (1280' - 1340') = medium gray curdy; somewhat adhesive; crunchy to pulverulent; irregular blocky fracture tabular to nodular cuttings habit; dull to earthy luster; smooth to gritty; thin structure with some laminae; trace to very calcareous; intergrading to very fine silt matrix supported sandstone, and to claystone; interbedded with very thin stringers of coal in places. Claystone (1340' - 1440') = medium gray with light and dark gray hues; curdy; adhesive; crunchy to crumbly; irregular to fine blocky fracture; nodular to tabular cuttings habit; dull to earthy luster, becoming micro sparkling where grading to gritty siltstone and rarely very fine silty sandstone; these rocks can be shaley in character in places, and also calcareous in part; interbedded with thin coals as described below. Coal (1370' - 1440') = black to grayish and brownish black; lignitic; tough to brittle; blocky to planar fracture; flaky to splintery cuttings habit; dull to vitreous luster; matte to brownish gray mottled texture; thin laminae; interbedded with siltstone and claystone as described above; occurs in thin beds and stringers in places; off gassing is rare in this interval. Shale (1440' - 1580') = medium to light gray; brittle to crunchy; blocky to planar fracture; tabular to wedge- like cuttings habit; dull waxy luster; smooth to silty texture; somewhat fissile; thin to laminar structure intergrading to thicker claystone and coarser siltstone. Thin coal also occurs in this interval. Paxton #5 9 Coal (1500' - 1550') = black to grayish and brownish black; low to medium grade; blocky to planar fracture; flaky to splintery cuttings habit; dull to vitreous luster; matte texture; thin laminae; slight to moderate off gassing; occurring in thin stringers with thin beds of shale, claystone, siltstone and stringers of sandstone that is very fine to fine grained, matrix supported and intergrading with gritty siltstone between 1500-1580' MD. Siltstone (1580' - 1620') = medium gray curdy; somewhat adhesive; crunchy to pulverulent; irregular planar fracture tabular to nodular cuttings habit; dull to earthy luster; smooth to gritty; thin structure with some laminae; slightly calcareous; intergrading to fine silt matrix supported sandstone, and to claystone. Claystone (1640' - 1680') = medium gray with light and dark gray hues; curdy; adhesive; crunchy to crumbly; irregular to fine blocky fracture; nodular to tabular cuttings habit; dull to earthy luster, becoming micro sparkling where grading to gritty siltstone and some very fine silty sandstone; tends to be slightly shaley in character in places with slight reaction to HCl. Siltstone (1680' - 1720') = medium gray curdy; somewhat adhesive; crunchy to pulverulent; irregular planar fracture tabular to nodular cuttings habit; dull to earthy luster; smooth to gritty; thin structure with some laminae; slightly calcareous; intergrading to fine silty shale and carbonaceous shale. Siltstone (1720' - 1760') = medium gray curdy; somewhat adhesive; crunchy to pulverulent; irregular planar fracture tabular to nodular cuttings habit; dull to earthy luster; smooth to gritty; thin structure with some laminae; slightly calcareous; interbedded with fine silty shale and carbonaceous shale. Siltstone (1720' - 1760') = medium gray curdy; somewhat adhesive; crunchy to pulverulent; irregular planar fracture tabular to nodular cuttings habit; dull to earthy luster; smooth to gritty; thin structure with some laminae; slightly calcareous; interbedded with some silty matrix sandstone and thin beds of shale and carbonaceous shale. Siltstone (1820' - 1860') = medium gray curdy; somewhat adhesive; crunchy to pulverulent; irregular planar fracture tabular to nodular cuttings habit; dull to earthy luster; smooth to gritty; thin structure with some laminae; slightly calcareous; interbedded with thin shale and carbonaceous shale beds. Sandstone (1860' - 1910') = medium to light gray; crunchy to pulverulent tenacity; nodular cuttings; irregular fracture; poorly sorted very fine to medium sub-angular to sub-rounded grains in a silty matrix; interbedded with siltstone and traces of shale and carbonaceous shale; small shaley clasts are common in some beds; dull to earthy luster; gritty texture. Siltstone (1940' - 1960') = medium gray color; crunchy to pulverulent tenacity; irregular planar fracture; tabular to nodular cuttings habit; dull to earthy luster; smooth to gritty texture; thinly bedded structure with some lamination; interbedded with sandstone, carbonaceous shale and shale; dull to earthy luster; smooth slightly gritty visual texture. Sandstone (1980' - 2020') = medium to light gray; crunchy to pulverulent tenacity; nodular cuttings; irregular fracture; poorly sorted very fine to medium sub-angular to sub-rounded grains in a silty matrix; interbedded with siltstone and traces of shale and carbonaceous shale; small shaley clasts are common in some beds; dull to earthy luster; gritty texture. Siltstone (2030' - 2070') = medium gray color; crunchy to pulverulent tenacity; irregular planar fracture; tabular to nodular cuttings habit; dull to earthy luster; smooth to gritty texture; thinly bedded structure with some lamination; interbedded with sandstone, carbonaceous shale and coal; dull to earthy luster; smooth slightly gritty. Paxton #5 10 Sandstone/Siltstone (2080' - 2150') = medium gray with light gray and light brownish gray hues; lower very fine to upper fine grained; poor to fair sorted; subangular to round; low to high sphericity improving with fining texture; common polish on quartz grains; unconsolidated to easily friable; matrix and grain supported varieties observed; intergrading to siltstone and claystone; some clay but predominantly silt matrix; grades to arenaceous and very gritty siltstone; composed of quartz with fine gray and dark volcanics; interbedded with coal, some of which is off gassing; non-calcareous; coarsening down. Sandstone/Siltstone (2150' - 2240') = light gray with medium gray and light brownish gray hues; lower very fine to lower medium grained; fair to well sorted; angular to round; moderate to low sphericity; common polish on grain surfaces; unconsolidated to easily friable; grain supported with common silty clay matrix; composed of quartz and light and dark volcanics in roughly equal parts; compositionally immature; texturally submature; rocks intergrade downward to finer siltstone and claystone; interbedded with thin shale, carbonaceous shale; also coal in stringers with some off gassing; rocks are calcareous in part. Siltstone (2240' - 2300') = medium dark gray with light and medium gray hues; crumbly to pulverulent; irregular blocky fracture; tabular to nodular cuttings habit, many wedge-like; dull earthy to micro sparkling luster with increased magnification; clayey to gritty texture; thin structure with some laminae; partly calcareous; intergrading with claystone and sandstone; interbeds with shale, and thin carbonaceous shale and coal. Ash (2290' - 2310') = yellowish gray; waxy luster; smooth texture; laminated. Tuffaceous Siltstone/Siltstone (2300' - 2350') = gray to yellowish gray when tuffaceous; crumbly to malleable; irregular blocky fracture; scaly to nodular cuttings habit; dull to waxy luster; clayey to gritty textures; thin beds intergrading to claystone and more tuffaceous with depth; interbeds of thin shale and carbonaceous shale. Tuffaceous Claystone/Claystone (2350' - 2430') = dark gray to yellowish gray; somewhat adhesive; clumpy to mushy; some hydrophilic; irregular blocky fracture; nodular to tabular cuttings habit, more wedge-like when siltier or shaley; greasy to dull luster; smooth to silty texture; some laminae; softer nodules impregnated with volcanic and quartz grains from intergrading beds of coarser rocks. Sandstone/Siltstone (2450' - 2520') = light gray with medium gray and light brownish gray hues; lower very fine to lower medium grained; fair to well sorted; angular to round; moderate to low sphericity; common polish on grain surfaces; unconsolidated to easily friable; grain supported with common silty clay matrix; composed of quartz and light and dark volcanics in roughly equal parts; compositionally immature; texturally sub-mature; rocks intergrade downward to finer siltstone and claystone; interbedded with thin shale, carbonaceous shale. Tuffaceous Claystone/Claystone (2520' - 2617') = gray to yellowish gray; somewhat adhesive; clumpy to mushy; some hydrophilic; irregular blocky fracture; nodular to tabular cuttings habit, more wedge-like when siltier or shaley; greasy to dull luster; smooth to silty texture; some laminae; softer nodules impregnated with volcanic and quartz and ash from intergrading beds of coarser rocks; interbedded with sandstone, welded tuff and siltstone. Paxton #5 11 3.3 Sampling Program Operator: Hilcorp Alaska, LLC (Hilcorp Energy Company) Well Name: Paxton #5 Field: Ninilchik Unit County: Kenai Borough State: Alaska Company Representatives: Mike Leslie, Bob Farrell, Zane Montague, Doug Yessak Location: Surface Coordinates 798’ FNL, 3019’ FEL, Sec. 13, T1S, R14W, SM, AK Classification: Exploration API #: 50-133-20614-00-00 Permit #: 213-075 Rig Name /Type: Saxon 147 Total Depth 2,617’ MD/2573’ TVD Total Depth Formation: Beluga Total Depth Date: September 24, 2013 Logging Geologists: James Foradas, Michael Strawn Sample Catchers: Kirk Wallander, Jane Grundin The sampling program specified by the Well Site Geologist called for the collection of two sets of washed and Dried Reference Samples beginning at 800’ MD. The intervals varied with depth and sampling extended from the onset of sampling to TD for each type. The resulting number of sets, sampling intervals and distribution of each sample is shown below. Sets Type and Purpose Interval Frequency Distribution 2 each Washed and Dried Reference Samples 800’ – 1860’ 1860’ – 2617’ 20’ Interval 10’ Interval David Buthman/Debra Oudean Hilcorp Alaska, LLC 3800 Centerpoint Drive Suite 100 Anchorage, AK 99508 Note: All sample sets (2 total) released to rig expediter for shipment. Paxton #5 12 4 DRILLING DATA 4.1 Surveys Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 0.00 0.00 352.28 0.00 N 0.00 E 0.00 0.00 N/A 18.00 0.00 352.28 18.00 N 0.00 E 0.00 0.00 0.00 128.24 1.53 39.76 128.23 N 1.13 E 0.94 1.10 1.39 173.70 1.72 38.80 173.67 N 2.13 E 1.76 2.06 0.42 234.13 1.66 41.73 234.07 N 3.49 E 2.91 3.38 0.17 294.41 1.85 44.90 294.32 N 4.83 E 4.18 4.67 0.35 357.80 1.72 50.27 357.68 N 6.16 E 5.63 5.95 0.33 419.13 3.34 13.34 418.96 N 8.49 E 6.75 8.23 3.62 478.12 5.49 0.69 477.77 N 12.98 E 7.18 12.71 3.98 542.18 6.44 358.06 541.48 N 19.64 E 7.10 19.36 1.54 603.28 6.72 358.60 602.18 N 26.64 E 6.89 26.36 0.47 663.85 6.77 354.79 662.33 N 33.74 E 6.48 33.47 0.74 726.57 6.47 347.88 724.63 N 40.87 E 5.40 40.64 1.36 823.91 7.04 351.13 821.30 N 52.13 E 3.33 51.97 0.70 886.32 8.52 350.81 883.13 N 60.47 E 2.00 60.36 2.37 946.93 10.12 351.29 942.94 N 70.17 E 0.48 70.10 2.64 1007.52 11.45 350.95 1002.46 N 81.37 W 1.27 81.36 2.20 1070.47 13.14 349.91 1063.96 N 94.59 W 3.51 94.65 2.71 1132.25 14.64 350.25 1123.93 N 109.19 W 6.06 109.34 2.43 1193.54 15.38 351.56 1183.13 N 124.87 W 8.56 125.10 1.33 1255.54 16.08 351.03 1242.81 N 141.48 W 11.11 141.80 1.15 1318.06 16.22 351.65 1302.86 N 158.67 W 13.73 159.07 0.36 1379.44 15.86 349.88 1361.85 N 175.41 W 16.45 175.90 0.99 1441.10 16.06 350.36 1421.14 N 192.12 W 19.36 192.70 0.39 1501.95 15.34 349.38 1479.71 N 208.32 W 22.25 209.01 1.26 1568.62 15.47 348.21 1543.99 N 225.70 W 25.69 226.49 0.51 1631.33 13.71 348.22 1604.67 N 241.16 W 28.92 242.07 2.81 1692.21 12.49 353.00 1663.97 N 254.76 W 31.19 255.74 2.68 1753.67 10.79 358.41 1724.17 N 267.11 W 32.16 268.11 3.28 1815.90 9.82 7.44 1785.40 N 278.19 W 31.64 279.17 3.02 1878.63 9.40 11.60 1847.25 N 288.51 W 29.91 289.43 1.29 Paxton #5 13 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 1940.37 9.07 10.91 1908.19 N 298.23 W 27.98 299.06 0.56 2002.50 9.68 10.69 1969.49 N 308.17 W 26.08 308.93 0.98 2060.24 10.31 12.04 2026.35 N 318.00 W 24.10 318.67 1.16 2123.82 10.48 10.26 2088.89 N 329.25 W 21.89 329.84 0.57 2186.14 9.61 7.17 2150.25 N 339.99 W 20.23 340.51 1.64 2247.82 10.09 8.45 2211.02 N 350.44 W 18.79 350.90 0.86 2312.12 10.80 8.17 2274.26 N 361.98 W 17.11 362.36 1.11 2374.77 11.26 9.63 2335.75 N 373.82 W 15.25 374.13 0.86 2436.68 11.97 10.15 2396.39 N 386.10 W 13.11 386.32 1.16 2498.85 12.64 10.52 2457.13 N 399.13 W 10.73 399.25 1.09 2555.48 12.83 10.06 2512.37 N 411.41 W 8.50 411.44 0.38 2618.00 12.83 10.06 2573.33 N 425.02 N 425.08 425.02 0.00 Pa x t o n # 5 14 4. 2 B i t R e c o r d BI T N O . SI Z E TY P E S / N JE T S / TF A IN O U T F T H R S AV E RO P Ft / H R CONDITION 1 9 - 7 / 8 ” S m i t h X R + C P S P T 4 2 0 0 3x 1 8 , 1 x 1 2 0. 8 5 6 80 ’ 7 9 3 ’ 7 1 3 ’ 6 . 4 2 3 3 . 5 1 - 2 - W T - A - 1 - I - C T - T D 3 6 - 3 / 4 ” S m i t h X R + V P T 5 0 3 8 3 x 1 4 7 9 3 ’ 2 6 1 7 ’ 1 8 2 5 ’ 3 2 . 5 7 4 . 5 1 - 1 - W T - A - E - I - N O - T D Pa x t o n # 5 15 4. 3 M u d R e c o r d Co n t r a c t o r : M . I . S w a c o Mu d T y p e : K l a - S h i e l d M u d Da t e D e p t h MW (p p g ) VI S (s / q t ) PV Y P G e l s FL (c c ) FC So l s (% ) O/ W Ra t i o Sd (% ) MB T p H Cl (ml/l) Ca (ml/l) 9/ 1 6 / 1 3 1 2 0 ’ / 1 2 0 ’ 9 . 6 6 3 2 5 2 5 6 / 9 / 1 1 5 . 2 1 / 7 3 / 9 1 - 4 9 . 6 2 1 0 0 0 1 2 0 9/ 1 7 / 1 3 6 1 0 ’ / 6 1 0 ’ 9 . 4 6 8 1 9 3 7 1 4 / 1 9 / 2 2 6 . 6 1 / 7 2 / 9 2 0 . 5 1 5 9 . 3 1 1 0 0 0 1 4 0 9/ 1 8 / 1 3 7 9 3 ’ / 7 9 3 ’ 9 . 4 7 2 1 5 3 2 1 0 / 1 4 / 1 7 5 . 8 1 / 8 1 / 9 1 0 . 5 9 9 . 4 8 0 0 4 0 0 9/ 1 9 / 1 3 7 9 3 ’ / 7 9 3 ’ 9 . 3 5 6 1 6 3 0 1 0 / 1 2 / 1 4 5 . 8 1 / 8 1 / 9 1 0 . 5 9 9 . 3 1 0 0 0 0 4 0 0 9/ 2 0 / 1 3 7 9 3 ’ / 7 9 3 ’ 9 . 3 6 3 1 7 2 8 9 / 1 1 / 1 3 5 . 7 1 / 7 - / 9 2 0 . 5 9 9 . 3 8 0 0 0 3 8 0 9/ 2 1 / 1 3 7 9 3 ’ / 7 9 3 ’ 9 . 7 5 2 1 0 1 2 3 / 4 / 5 6 . 8 1 / 7 - / 9 3 - 3 9 . 1 3 8 0 0 0 8 0 0 9/ 2 2 / 1 3 1 6 8 5 ’ / 1 6 4 5 ’ 9 . 5 5 5 1 4 1 8 4 / 5 / 7 6 . 0 1 / 6 - / 9 4 t r 1 9 . 7 2 6 0 0 0 8 0 9/ 2 3 / 1 3 2 4 9 5 ’ / 2 4 5 3 ’ 9 . 7 5 6 1 5 1 6 3 / 5 / 7 5 . 2 1 / 8 1 / 9 1 - 3 9 . 8 2 9 0 0 0 8 0 9/ 2 4 / 1 3 2 6 1 8 ’ / 2 5 7 3 ’ 9 . 7 5 7 1 5 1 5 3 / 4 / 6 6 . 0 1 / 8 1 / 9 1 - 1 0 9 . 5 2 8 0 0 0 8 0 9/ 2 5 / 1 3 2 6 1 8 ’ / 2 5 7 3 ’ 9 . 7 5 9 1 3 1 4 3 / 4 / 6 5 . 2 1 / 8 1 / 9 1 - 5 9 . 5 2 7 0 0 0 8 0 Ab b r e v i a t i o n s : MW = M u d W e i g h t V I S = F u n n e l V i s c o s i t y PV = P l a s t i c V i s c o s i t y Y P = Y i e l d P o i n t G e l s = G e l S t r e n g t h F L = W a t e r o r F i l t r a t e Lo s s F C = F i l t e r C a k e O / W = O i l t o W a t e r r a t i o S o l s = S o l i d s S d = S a n d c o n t e n t M B T = M e t h y l e n e B l u e A l k , P m = A l k a l i n i t y , M u d pH = A c i d i t y / B a s i c i t y C l = C h l o r i d e s C a = H a r d n e s s C a l c i u m n r = N o t R e c o r d e d Pa x t o n # 5 16 4. 4 D r i l l i n g P r o g r e s s C h a r t DA Y S V E R S U S D EP T H 0 50 0 10 0 0 15 0 0 20 0 0 25 0 0 30 0 0 9 / 1 4 / 1 3 9 / 1 5 / 1 3 9 / 1 6 / 1 3 9 / 1 7 / 1 3 9 / 1 8 / 1 3 9 / 1 9 / 1 3 9 / 2 0 / 1 3 9 / 2 1 / 1 3 9 / 2 2 / 1 3 9 / 2 3 / 1 3 9 / 2 4 / 1 3 9 / 2 5 / 1 3 9 / 2 6 / 1 3 9 / 2 7 / 1 3 DA T E D E P T H ( F T ) 9- 7 / 8 " H o l e 6- 3 / 4 " H o l e W i r e l i n e L o g s Co m p l e t i o n HI L C O R P P A X T O N # 5 SP U D D A T E : 16 S E P T E M B E R 2 0 1 3 Paxton #5 17 5 DAILY DRILLING REPORTS Hilcorp Ninilchik Field DAILY WELLSITE REPORT Paxton#5 REPORT FOR Farrell, Yessak DATE Sep 15, 2013 DEPTH 80.00000 PRESENT OPERATION Rigging Up TIME 23:59 YESTERDAY 80.00000 24 HOUR FOOTAGE 0 CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP Gels FL CL- FC SOL SD OIL MBT pH Ca+ Alk MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Rigging up logging unit CANRIG PERSONNEL ON BOARD 2 DAILY COST $2895.00 REPORT BY Mike Strawn Hilcorp Ninilchik Field DAILY WELLSITE REPORT Paxton#5 REPORT FOR Farrell, Yessak DATE Sep 16, 2013 DEPTH 80' PRESENT OPERATION Drilling Ahead TIME 23:59 YESTERDAY 128' 24 HOUR FOOTAGE 48' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 1 9.875" Mill Tooth PT4200 3x18, 1x12 80 In Hole 48 0.26 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP Gels FL CL- FC SOL SD OIL MBT pH Ca+ Alk MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS No shows this section. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Rigging up logging unit, pick up pipe, work on riser and 4" nipple on conductor, rig up flow line, pre-spud inspection, function test annular- knife valve, pick up BHA#1, adjust torque tube to hole center, test standpipe, pick up BHA and scribe motor, slide drill from 96' to 106', rotary drill from 106' to 128'. No gas last 24 hours. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2895.00 REPORT BY Mike Strawn Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Paxton#5 REPORT FOR Farrell, Yessak DATE Sep 17, 2013 DEPTH 793' PRESENT OPERATION Circulating TIME 23:59 YESTERDAY 128' 24 HOUR FOOTAGE 665' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 542.18 6.44 358.06 541.48 603.28 6.72 358.60 602.18 663.85 6.77 354.79 662.33 726.57 6.47 347.88 724.63 793.00 6.47 347.88 790.64 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 1 9.875" Mill Tooth PT4200 3x18, 1x12 80' In Hole 713' 3.57 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 1815.6 @ 366' 0.7 @ 397' 171.8 421.0 FT/HR SURFACE TORQUE 10525 @ 172' 0 @ 302' 2934.9 3932.6 FT-LBS WEIGHT ON BIT 27 @ 169' 0 @ 302' 12.0 12.0 KLBS ROTARY RPM 70 @ 708' 3 @ 475' 33.2 69.1 RPM PUMP PRESSURE 1027 @ 628' 480 @ 446' 562.1 908.8 PSI DRILLING MUD REPORT DEPTH 80' MW 10.0 VIS 150 PV 41 YP 65 Gels 22/42/46 FL 3.0 CL- 500 FC 2/0 SOL 7.0 SD OIL MBT 19.0 pH 9.5 Ca+ 40 Alk 0.50/1.00 MWD SUMMARY INTERVAL 98' TO 793' TOOLS Directional GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 70 @ 781' 0 @ 148' 11.4 TRIP GAS N/A CUTTING GAS @ @ WIPER GAS 13u CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) 0 @ 793' 0 @ 793' 0.0 CONNECTION GAS HIGH 1u ETHANE (C-2) 0 @ 793' 0 @ 793' 0.0 CONNECTION GAS AVG 1u PROPANE (C-3) 0 @ 793' 0 @ 793' 0.0 CONNECTION GAS CURRENT 1u BUTANE (C-4) 0 @ 793' 0 @ 793' 0.0 CURRENT BACKGROUND/AVG 68u/11u PENTANE (C-5) 0 @ 793' 0 @ 793' 0.0 HYDROCARBON SHOWS No major shows this section, for minor shows see mud log. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Sandstone 70%, Carbonaceous Shale/Coal 30%. DAILY ACTIVITY SUMMARY Rotary drill from 128’ to 142’, circulate and clean hole, rotate from 142’ to 204’, pump sweep circulate and clean hole, service rig, pull out of hole 2 stands and pick up rest of BHA, wash and ream from 115’ to 204’ picking up monel float sub and hydraulic jars, rotate from 204’ to 396’, slide from 396’ to 425’, rotate from 425’ to 459’, slide from 459’ to 486’, rotate from 486’ to 545’, trouble shoot MWD interference, rotate from 545’ to 793’, circulate and clean hole, pull out of hole to BHA and trip in hole to 793’ on wiper trip washing last stand down, circulate bottoms up and pump sweep. Max gas last 24 hours 72 units circulating @ 793'. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2895.00 REPORT BY Mike Strawn Hilcorp Alaska, LLC Ninnilchik Field DAILY WELLSITE REPORT Paxton#5 REPORT FOR Farrell, Yessak DATE Sep 18, 2013 DEPTH 793' PRESENT OPERATION Moving Casing TIME 05:00 YESTERDAY 204' 24 HOUR FOOTAGE 589' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 542.18' 6.44 358.06 541.48' 603.28' 6.72 358.60 602.18' 663.85' 6.77 354.79 662.33' 726.57' 6.47 347.88 724.63' 793.00' 6.47 347.88 790.64' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 1 9.875" Mill Tooth PT 4200 3x18, 1x12 80' 793' 713' 3.57 Surface Casing DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 1815.6 @ 366' 0.7 @ 397' 194.0 421.00620 FT/HR SURFACE TORQUE 6046 @ 489' 0 @ 302' 2814.9 3932.57007 FT-LBS WEIGHT ON BIT 21 @ 628' 0 @ 302' 12.4 11.96000 KLBS ROTARY RPM 70 @ 708' 3 @ 475' 37.5 69.14000 RPM PUMP PRESSURE 1027 @ 628' 480 @ 446' 634.6 908.78998 PSI DRILLING MUD REPORT DEPTH 497' MW 10.0 VIS 236 PV 42 YP 74 Gels 28/52/0 FL 4.8 CL- 500 FC 3/0 SOL 7.8 SD 1.00 OIL MBT 12.5 pH 9.3 Ca+ 80 Alk 0.40 MWD SUMMARY INTERVAL 98' TO 793' TOOLS Directional GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 70 @ 781' 0 @ 204' 12.9 TRIP GAS N/A CUTTING GAS @ @ WIPER GAS 13u CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) 0 @ 793' 0 @ 793' 0.0 CONNECTION GAS HIGH 1u ETHANE (C-2) 0 @ 793' 0 @ 793' 0.0 CONNECTION GAS AVG 1u PROPANE (C-3) 0 @ 793' 0 @ 793' 0.0 CONNECTION GAS CURRENT 1u BUTANE (C-4) 0 @ 793' 0 @ 793' 0.0 CURRENT BACKGROUND/AVG 0u/13u PENTANE (C-5) 0 @ 793' 0 @ 793' 0.0 HYDROCARBON SHOWS No major shows this section, for minor shows see mud log. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Sandstone 70%, Carbonaceous Shale/Coal 30%. DAILY ACTIVITY SUMMARY Pick up the rest of the BHA, wash and ream from 115’ to 204’ picking up monel float sub and hydraulic jars, rotate from 204’ to 396’, slide from 396’ to 425’, rotate from 425’ to 459’, slide from 459’ to 486’, rotate from 486’ to 545’, trouble shoot MWD interference, rotate from 545’ to 793’, circulate and clean hole, pull out of hole to BHA and trip in hole to 793’ on wiper trip washing last stand down, circulate bottoms up and pump sweep, pump slug and pull out of hole to BHA work BHA, service rig, move casing to make room for logging truck. Max gas last 24 hours 72 units circulating @ 793'. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2895.00 REPORT BY Mike Strawn Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Paxton#5 REPORT FOR Farrell, Yessak DATE Sep 18, 2013 DEPTH 793' PRESENT OPERATION Rig Up Cassing Crew TIME 23:59 YESTERDAY 793' 24 HOUR FOOTAGE 0' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 726' 6.47 347.88 724.63' 793' 6.47 347.88 790.64' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 1 9.875" Mill Tooth PT4200 3x18, 1x12 80' 793' 713' 3.57 TD Sfc. DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 497' MW 10.0 VIS 236 PV 42 YP 74 Gels 28/52/0 FL 4.8 CL- 500 FC 3/0 SOL 7.8 SD 1.00 OIL MBT 12.5 pH 9.3 Ca+ 80 Alk 0.40 MWD SUMMARY INTERVAL 98' TO 793' TOOLS Directional GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 7u CUTTING GAS @ @ WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) @ @ CONNECTION GAS HIGH N/A ETHANE (C-2) @ @ CONNECTION GAS AVG N/A PROPANE (C-3) @ @ CONNECTION GAS CURRENT N/A BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0u/3u (when circ.) PENTANE (C-5) @ @ HYDROCARBON SHOWS No new hole drilled last 24 hours. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Sandstone 70%, Carbonaceous Shale 30%. DAILY ACTIVITY SUMMARY Pump slug and pull out of hole to BHA, work BHA, service rig, move casing to make room for logging truck, rig up wireline loggers, run wireline logs and rig down wireline tools, pick up BHA#2, trip in hole to 740’, wash from 740’ to 793’, circulate and pump high vis sweep, pump out of hole to 370’, trip in hole to 793’, circulate and work pipe, pull out of hole to BHA, lay down BHA, rig down 4.5” handling equipment and pull wear ring, service rig and rig up casing equipment. Max Gas last 24 hours 7 units trip gas. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2895.00 REPORT BY Mike Strawn Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Paxton#5 REPORT FOR Farrell, Yessak DATE Sep 19, 2013 DEPTH 793' PRESENT OPERATION Cutting Hole in Conductor TIME 23:59 YESTERDAY 793' 24 HOUR FOOTAGE 0' CASING INFORMATION 7.625" @ 780' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 726' 6.47 347.88 724.63' 793' 6.47 347.88 790.64' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 1 9.875 Mill Tooth PT4200 3x18, 1x12 80' 793' 713' 3.57 TD Sfc. DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 793' MW 9.3 VIS 65 PV 19 YP 34 Gels 13/17/20 FL 6.4 CL- 1100 FC 1/0 SOL 7 SD 0.5 OIL 2/92 MBT 12 pH 9.3 Ca+ 400 Alk 1.2 MWD SUMMARY INTERVAL 98' TO 793' TOOLS Directional GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 3u CUTTING GAS @ @ WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) @ @ CONNECTION GAS HIGH N/A ETHANE (C-2) @ @ CONNECTION GAS AVG N/A PROPANE (C-3) @ @ CONNECTION GAS CURRENT N/A BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0u/0u PENTANE (C-5) @ @ HYDROCARBON SHOWS No new hole drilled last 24 hours. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Sandstone 70%, Carbonaceous Shale 30%. DAILY ACTIVITY SUMMARY Run 7.625” casing to 780’, circulate and clean hole prior to cement job, rig up cement crew, cement 7.625” casing set @ 780’, rig down cementers, back out landing joint install pack off and pressure test, nipple down diverter system, rig up and run wireline, rig down wireline, finish nippling down diverter system, clean cellar and currently cutting for piping to cement. Max gas last 24 hours 3 units circulating to clean hole @ 780'. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2895.00 REPORT BY Mike Strawn Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Paxton#5 REPORT FOR Farrell, Yessak DATE Sep 20, 2013 DEPTH 793' PRESENT OPERATION Nipple up BOP's TIME 23:59 YESTERDAY 793' 24 HOUR FOOTAGE 0' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 726' 6.47 347.88 724.63' 793' 6.47 347.88 790.64' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 1 9.875" Mill Tooth PT4200 3x18, 1x12 80' 793' 713' 3.57 TD Sfc. DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 793' MW 9.4 VIS 72 PV 15 YP 32 Gels 10/12/13 FL 5.6 CL- 8000 FC 1/0 SOL 8.0 SD 0.5 OIL 1/91 MBT 9.0 pH 9.3 Ca+ 320 Alk 1.1 MWD SUMMARY INTERVAL 98' TO 793' TOOLS Directional GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS N/A CUTTING GAS @ @ WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) @ @ CONNECTION GAS HIGH N/A ETHANE (C-2) @ @ CONNECTION GAS AVG N/A PROPANE (C-3) @ @ CONNECTION GAS CURRENT N/A BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0u/0u PENTANE (C-5) @ @ HYDROCARBON SHOWS No new hole drilled last 24 hours. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Sandstone 70%, Carbonaceous Shale 30%. DAILY ACTIVITY SUMMARY Rig up cement crew and service rig, attempt to string 1.25” pipe for cement too tight used 0.75” hose, cement, rig down cement crew, nipple up BOPs. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3880.00 REPORT BY Mike Strawn Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Paxton#5 REPORT FOR Montague, Yessak DATE Sep 21, 2013 DEPTH 793' PRESENT OPERATION Drilling Shoe TIME 23:59 YESTERDAY 793' 24 HOUR FOOTAGE 0' CASING INFORMATION 7.625" @ 780' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 726' 6.47 347.88 724.63' 793' 6.47 347.88 790.64' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 2 9.875" Mill Tooth 793' 793' 0' 0 Hole Clean 3 6.75" Smith Mill Tooth PT5038 3x14/0.451 793' In Hole 0' 0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 793' MW 9.7 VIS 62 PV 10 YP 18 Gels 4/7/11 FL 6 CL- 37000 FC 1 SOL 6.0 SD OIL MBT 5 pH 9.3 Ca+ 100 Alk 1.3 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS N/A CUTTING GAS @ @ WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) @ @ CONNECTION GAS HIGH N/A ETHANE (C-2) @ @ CONNECTION GAS AVG N/A PROPANE (C-3) @ @ CONNECTION GAS CURRENT N/A BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS No new hole drilled last 24 hours. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Sandstone 70%, Carbonaceous Shale 30%. DAILY ACTIVITY SUMMARY Nipple up BOP’s, rig up test equipment, test BOP’s, rig down test equipment, align valves for drilling, pick up BHA#3, trip in hole to 692’ and tagged cement, displaced casing with new mud, pressure test casing, service rig, start drilling shoe from 692’ to 695’. Max gas last 24 hours 0 units. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3880.00 REPORT BY Mike Strawn Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Paxton#5 REPORT FOR Montague, Yessak DATE Sep 22, 2013 DEPTH 1839' PRESENT OPERATION Drilling Ahead TIME 23:59 YESTERDAY 793' 24 HOUR FOOTAGE 1046' CASING INFORMATION 7.625" @ 780' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1255.54' 16.08 351.03 1242.81' 1318.06' 16.22 351.65 1302.86' 1379.44' 15.86 349.88 1361.85' 1441.10' 16.06 350.36 1421.13' 1501.95' 15.34 349.38 1479.71' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.75" Smith Mill Tooth PT5038 3x14/0.451 793' In Hole 1046 13.7 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 428.8 @ 885' 4.1 @ 1509' 97.1 40.9 FT/HR SURFACE TORQUE 5666 @ 1738' 2278 @ 794' 3132.7 0.0 FT-LBS WEIGHT ON BIT 34 @ 1630' 1 @ 794' 9.1 9.4 KLBS ROTARY RPM 79 @ 1802' 3 @ 968' 38.9 0.0 RPM PUMP PRESSURE 1317 @ 1780' 908 @ 793' 1219.9 1278.7 PSI DRILLING MUD REPORT DEPTH 1685' MW 9.5 VIS 55 PV 14 YP 18 Gels 4/5/7 FL 6.0 CL- 26,000 FC 1/ SOL 6.0 SD tr OIL MBT 1.0 pH 9.7 Ca+ 80 Alk 2.4 MWD SUMMARY INTERVAL 793' TO 1839' TOOLS Directional, Gamma and Mud Motor. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 204 @ 1549' 0 @ 805' 20.3 TRIP GAS 12u CUTTING GAS @ @ WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) 39912 @ 1535' 87 @ 805' 4624.0 CONNECTION GAS HIGH 21u ETHANE (C-2) 151 @ 1102' 0 @ 1657' 13.4 CONNECTION GAS AVG 7u PROPANE (C-3) 0 @ 1839' 0 @ 1839' 0.0 CONNECTION GAS CURRENT 17u BUTANE (C-4) 7 @ 1839' 0 @ 1822' 0.1 CURRENT BACKGROUND/AVG 16u/20u PENTANE (C-5) 5 @ 1839' 0 @ 1822' 0.0 HYDROCARBON SHOWS No major shows this section, for minor shows see mud log. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga Formation @ 1344' MD PRESENT LITHOLOGY Siltstone 70%, Shale 20%, Carbonaceous shale 10%. DAILY ACTIVITY SUMMARY Drill shoe and 20’ of formation to 813’, perform fit, drilling ahead sliding as needed to maintain vector from 813’ to 1442’, service rig, drilling ahead sliding as needed from 1442’ to 1839’ MD. Max gas last 24 hours 204 units at 1549' MD. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3880.00 REPORT BY Mike Strawn Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Paxton#5 REPORT FOR Montague, Yessak DATE Sep 23, 2013 DEPTH 2483' PRESENT OPERATION Drilling ahead TIME 23:59:19 YESTERDAY 1839' 24 HOUR FOOTAGE 644' CASING INFORMATION 7.625" @ 780' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2186.14' 9.61 7.17 2150.25' 2247.82' 10.09 8.45 2211.02' 2312.12' 10.8 8.17 2274.26' 2374.77' 11.26 9.63 2335.75' 2436.68' 11.97 10.15 2396.39' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.75" Smith Mill Tooth PT5038 3x14/0.451 793' In Hole 1690' 27.9 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 92.1 @ 2168.' 1.9 @ 2125' 46.2 46.9 FT/HR SURFACE TORQUE 6057 @ 2156' 5222 @ 1936' 5038.0 5519.2 FT-LBS WEIGHT ON BIT 47 @ 2372' 4 @ 1911' 9.2 7.7 KLBS ROTARY RPM 79 @ 2427' 7 @ 2438' 65.5 74.1 RPM PUMP PRESSURE 1495 @ 2450' 1142 @ 1878' 1337.9 1364.3 PSI DRILLING MUD REPORT DEPTH 2495' MW 9.7 VIS 56 PV 15 YP 16 Gels 3/5/7 FL 5.2 CL- 29,000 FC 1/ SOL 8.0 SD OIL 1/91 MBT 3.0 pH 9.8 Ca+ 80 Alk 1.6 MWD SUMMARY INTERVAL 793' TO 2483' TOOLS Directional, Gamma and Mud Motor. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 102 @ 2135.00000 2 @ 2062.00000 21.4 TRIP GAS N/A CUTTING GAS @ @ WIPER GAS 98u CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) 37919 @ 2135.00000 700 @ 2062.00000 7140.0 CONNECTION GAS HIGH 23u ETHANE (C-2) 213 @ 1855.00000 0 @ 2352.00000 33.7 CONNECTION GAS AVG 10u PROPANE (C-3) 0 @ 2483.00000 0 @ 2483.00000 0.0 CONNECTION GAS CURRENT 12u BUTANE (C-4) 34 @ 1855.00000 0 @ 2259.00000 2.8 CURRENT BACKGROUND/AVG 14u/21u PENTANE (C-5) 27 @ 2072.00000 0 @ 2462.00000 2.2 HYDROCARBON SHOWS No major shows this section, for minor shows see mud log. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga 50 @ 2310' MD PRESENT LITHOLOGY Sandstone 40%, Claystone 40%, Siltstone 20%. DAILY ACTIVITY SUMMARY Drilling ahead sliding as needed to maintain vector from 1839’ to 2436’, make short trip back reaming to shoe, trip in hole to bottom and drilling ahead from 2436’ to 2483’ MD at report time. Max gas last 24 hours 102 units @ 2135'. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3880.00 REPORT BY Mike Strawn Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Paxton#5 REPORT FOR Montague, Yessak DATE Sep 24, 2013 DEPTH 2617' PRESENT OPERATION Wireline Logging TIME 23:59 YESTERDAY 2483' 24 HOUR FOOTAGE 134' CASING INFORMATION 7.625" @ 780' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2555.48' 12.83 10.06 2512.32' 2617.98' 12..83 10.06 2573.26' (Projected) BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.75" Smith Mill Tooth PT5038 3x14/0.451 793' 2617.98' 1825' 32.47 TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 151.6 @ 2562' 4.5 @ 2513' 36.3 48.7 FT/HR SURFACE TORQUE 5835 @ 2561' 5519 @ 2483' 5684.6 5599.3 FT-LBS WEIGHT ON BIT 11 @ 2514' 5 @ 2502' 9.4 9.8 KLBS ROTARY RPM 78 @ 2613' 7 @ 2563' 72.4 76.8 RPM PUMP PRESSURE 1366 @ 2515' 1314 @ 2498' 1358.9 1365.2 PSI DRILLING MUD REPORT DEPTH 2618' MW 9.7 VIS 57 PV 15 YP 15 Gels 3/4/6 FL 5.0 CL- 28,000 FC 1/ SOL 8.0 SD OIL 1/91 MBT 10.0 pH 9.5 Ca+ 80 Alk 1.1 MWD SUMMARY INTERVAL 793' TO 2618' TOOLS Directional and Mud Motor. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 16 @ 2520' 5 @ 2562' 9.2 TRIP GAS N/A CUTTING GAS @ @ WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) 6567 @ 2610' 2005 @ 2562' 3894.3 CONNECTION GAS HIGH 5 ETHANE (C-2) 68 @ 2520' 2 @ 2543' 32.1 CONNECTION GAS AVG 5 PROPANE (C-3) 0 @ 2617' 0 @ 2617' 0.0 CONNECTION GAS CURRENT 4 BUTANE (C-4) 21 @ 2573' 0 @ 2600' 2.7 CURRENT BACKGROUND/AVG 0u/9u PENTANE (C-5) 15 @ 2582' 0 @ 2559' 5.2 HYDROCARBON SHOWS No major shows this section, for minor shows see mud log. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga 60 @ 2562' MD/2519' TVD PRESENT LITHOLOGY Sandstone 60%, Claystone 30%, Siltstone 10%. DAILY ACTIVITY SUMMARY Drilling ahead from 2483’ to 2617’ MD, circulate and pump sweeps to clean hole, pull out of hole, lay down BHA, clean floor, rig up wireline, run wireline logs. Max gas last 24 hours 17 units @ 2520'. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3880.00 REPORT BY Mike Strawn Hilcorp Alaska, LLC DAILY WELLSITE REPORT Paxton#5 REPORT FOR Montague, Yessak DATE Sep 25, 2013 DEPTH 2618' PRESENT OPERATION R/U casing. TIME 23:59 YESTERDAY 2618' 24 HOUR FOOTAGE 0' CASING INFORMATION 7.625" @ 780' MD SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2617.98' 12.83 10.06 2573.26' (Projected) BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2618' MW 9.7 VIS 59 PV 14 YP 13 Gels 3/4/6 FL 0 CL- 27000 FC 1/ Na SOL 8 SD 0 OIL 1/91 MBT 5 pH 9.5 Ca+ 80 Alk MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 39u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Wireline logs and, POOH with logging equipment. L/D logging equipment. Rig service. P/U and M/U BHA. TIH from 705’-2618’ MD. Condition mud and circulate @2618’ MD. POOH 2618’ MD and L/D 4.5” drill pipe to 705’ MD. L/D BHA and clean rig floor. P/U cement head and rack back. R/U casing CANRIG PERSONNEL ON BOARD 4 DAILY COST $3880.00 REPORT BY Britten Adams Hilcorp Alaska, LLC DAILY WELLSITE REPORT Paxton#5 REPORT FOR Montague, Yessak DATE Sep 26, 2013 DEPTH 2618' PRESENT OPERATION R/U wireline. TIME 23:59 YESTERDAY 2618' 24 HOUR FOOTAGE 0' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP Gels FL CL- FC SOL SD OIL MBT pH Ca+ Alk MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Run casing to 1997’ MD. P/U hanger fill liner tieback sleeve with pal mix. TIH casing to 2595’ MD. Latch cement stand and tag @ 2612’ MD and circulate. Continue to circulate while R/U cements equipment. PJSM with cement crew. Mix mud push. Test lines with 5BBL of water. Pump 30BBLS of mud push. Mix and pimp 75BBLS (12.5PPG cement). Drop plug at (15:31) with 2700PSI. Displace with 33.9BBLS. Set liner hanger, pressure up-tool and release at 3800PSI. R/D cement equipment flush threw lines. L/D cements head, L/D HWDP, L/D Baker tools, and R/U wireline. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3880.00 REPORT BY Britten Adams Hilcorp Alaska, LLC DAILY WELLSITE REPORT Paxton#5 REPORT FOR Montague, Yessak DATE Sep 26, 2013 DEPTH 2618' PRESENT OPERATION Tag landing collars at 2522' MD and displace with water per mud man. TIME 18:30:00 YESTERDAY 2618' 24 HOUR FOOTAGE 0' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP Gels FL CL- FC SOL SD OIL MBT pH Ca+ Alk MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Strap and tally 2 7/8” TBG. Get ID and OD on scrapers. Run in hole tandem scraper brush assembly to 2522’ MD. Tag landing collar at 2522’ MD displace with water per mud man. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3880.00 REPORT BY Britten Adams