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Home My WebLink About205-165STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS RECEIVED By Kayla Junke at 8:50 am, Apr 03, 2023 1. Operations Susp Well Insp❑ Plug Perforations Q Fracture Stimulate ❑ Pull Tubing ❑ Operations shutdown ❑ Performed: Install Whipstock❑ Perforate ❑ Other Stimulate ❑ Alter Casing ❑ Change Approved Program ❑ Mod Artificial Lift❑ Perforate New Pool 0 Repair Well ❑ Coiled Tubing Ops ❑ Other: N2 Operations ❑✓ 2. Operator Name 4. Well Class Before Work: 5. Permit to Drill Number: Hilcorp Alaska, LLC Development ❑✓ Stratigraphic ❑ Exploratory ❑ Service ❑ 205-165 3. Address: 3800 Certterpoint Drive, Suite 1400 6. API Number: Anchorage, Alaska 99503 50-133-20556-00-00 7. Property Designation (Lease Number): 8. Well Name and Number: FEDA028142 Kenai Beluga Unit (KBU) 11-07 9. Logs (List logs and submit electronic data per 20AAC25.071): 10. Field/Pool(s): N/A Kenai Gas Field / Sterling Undefined Pool 11. Present Well Condition Summary: Total Depth measured 7,900 feet Plugs measured See Schematic feet true vertical 7,619 feet Junk measured N/A feet Effective Depth measured 3,660 feet Packer measured N/A feet true vertical 3,456 feet true vertical N/A feet Casing Length Size MD TVD Burst Collapse Structural Conductor 128' 20" 128' 128' Surface 1,717' 13-3/8" 1,717' 1,680' 3,450psi 1,950psi Intermediate 5,579' 9-518" 5,579' 5,299' 5,750psi 3,090psi Production 7,870' 3-1/2" 7,870' 7,604' 10,160psi 10,540psi Liner Perforation depth Measured depth See Schematic feet True Vertical depth See Schematic feet Tubing (size, grade, measured and true vertical depth) 3-1/2" 9.3# / L-80 7,870' MD 7,604' TVD Packers and SSSV (type, measured and true vertical depth) N/A N/A N/A N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13a. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf I Water-Bbl Casing Pressure Tubing Pressure Prior to well operation'l 0 1 0 1 0 1 450 1 5 Subsequent to operation: 10 10 10 1480 1687 13b. Pools active after work: 14. Attachments (required per 20 AAC 25.070. 25.071, 825.283) 15. Well Class after work: Daily Report of Well Operations ❑✓ Exploratory ❑ Development Q Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16. well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ LJ SUSP ❑ SPLUG ❑ 17. 1 hereby Certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: Noel NocaS D'91UNsgretlby Nm Noos 322-494 Authorized Name and o-a=DN:c Nml Novas taxer), (4361) Di ital Signature with Date: Dareus: zoasze.Daar rroe:or na•oo• Contact Name: Chad Hel eson, Operations Engineer Contact Email: chelgeSon(WhilcoM.COm Authorized Title: Noel Nocas, Operations Manager 907-564-5278 Contact Phone: 907-777-8405 Sr Pet Eng: I ISr Pet Geo: I I Sr Res Eng: DSR-.,,, .„ Form 10-404 Revised 10/2022 Due Within 30 days of Operations Submit in PDF format to aogcc.permitting@alaska.gov RBDMS JSB 040423 Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date KBU 11-07 E-Line 50-133-20556-00-00 205-165 3/1/23 3/3/23 Daily Operations: 03/01/2023- Wednesday Yellow Jacket E-line and Fox N2 arrive on location. Hold TBT and approve PTW. MIRU equipment. MU GPT toolstring with 3.5" CIBP. PT lubricator and pump lines to 250 psi low / 2500 psi high. RIH with E-line and find fluid level at 300'. Online with N2 pump. Pump up to 2500 psi. Fluid level moved down to 362'. POOH with toolstring and remove CIBP. MU and RIH with 2" bull plug, weight bar and GR/CCL. Tag at 3688' (sticky pick up weight) Approval from Bryan McLellan with AOGCC to set plug at 3685' due to tag depth via e-mail sent on 3/1/2023. Release Fox N2. Total N2 used = 59,198 scf. MU and RIH with 3.5" CIBP toolstring. Send correlation log to RE/GEO and confirm on depth. Set CIBP at 3685'. Tag plug to confirm set. Dump bail 25' of cement (9.2 gallons) on top of CIBP. Estimated TOC = 3660'. RDMO. 03/03/2023- Friday PTW JSA with crew. MIRU Yellow Jacket E-line. Stab on well. PT stack 250/2500 psi. SITP 646 psi. RIH and pull correlation pass using KBU 11-07 Corrected Main Log pass. Send to town. Shift log 2'. Make 3606' to 3608'. Pull into position. Stop CCL at 3570.5'. (CCL to top shot 10.5') Shoot P3_A6 zone from 3581'-3583' with 2.5" OD x 2' with 6 spf 2.375" Razor charges. POOH to surface. Prior to shooting WHP was 646 psi . 5 minutes 685 psi, 10 minutes 702 psi, 15 minutes 712 psi. All shots confirmed fired. Guns came back dry. RDMO. Flow well. 50-133-20556-00 A-028142 87' (21' AGLI 60' 27' 38.876" N 151' 15' 47.584" W @ 1800 hrs. Tree crossing = 4-3/4" Otis Top of Cement (CBL) 2,815' MD 4/22/22 CIBP @ 3,685' w/ 25' cmt 311123 CIBP @ 3,795' 6/20/22 CIBP @ 4,005' w/ 29' cmt 6116/22 CIBP @ 4,375' w/ 25' cmt 519122 CIBP @ 4,920' w/ 27' of cmt 4/14122 EXca e S stem Details eramlc apper valves below each module as follows: - 17 Conventional flappers - No Sapper below Module-1 Flappers MD g(RKB): Module 18 - 6 2p' 41 Module 17 - Module 16 - 6,311' Module 15 - 6,440' Module 14 - 6,528' Module 13 - 6,680' Module 12 - 6,788' Module 11-6,838' Module 10 - 6,928' Module 9- 7,020' Module 8- 7,137' Module 7 - 7,209' Module 6- 7,320' Module 5- 7,372' Module 4 - 7,473' Module 3- 7,598' Module 2 - 7,668' Module 1 - NA KBU 11-7 Pad 14-6 490' FSL, 1,066' FWL, Sec. 6, T4N, R11W, S.M. A•. r TD 7,900• MD 7,619' TVD SCHEMATIC Conductor: 20" X-52 131 ppf TORBottom MD 0' 128' 13418" K-55 68 ppf BTC Top Bottom MD 0' 1,717' TVD 0' 1,680' 16" hole Cmt w/ 543 sks (238 bbls) of 12.0 ppg, Type 1 cmt, 100 % returns 11 sks (Sbbls) to surface. 9-518" L-80 40 ppf BTC TOR Bottom MD 0' 5,579' TVD 0' 5,299' 12-1/4" hole Cmt w/ 297 sks (111 bbls) of 12.5 ppg Class G Lead & 248 sks(85 bbls) of 13.5 ppg Class G Tail, Calc TOC 2,944' (25 % losses) UB to UB7 •3.1/2"V VL-80� 9.3 ppf EUE Tyg Bottom 8rd MD 0' 7,870' TVD 0' 7,604' 8-1/2" hole Cmt w/ 1,067 sks (220 bbls) of 15.8 ppg Class G, 100% returns PBTD 3,795• MD 3,579- TVD Green control line fetl module 1 control line fired modules 2 thru 10 Red contol line fired modules 11 thru 18 Ceramic flapper valves below each module except for module 1 3,581'-3,583' 3/3/23 Sterling P3 3,755'-3,775' 3/1/23 Sterling P3 3,8091-3,816' 6/16/22 Sterling P3 3,844-3,864' 6/16/22 Sterling P3 3,945-3,960' 6/16/22 Sterling P4 4,022'-4,032' 5/14/22 Sterling P5B5 4,400'-4,407' 4/24/22 UB 4,958-4,976' (Beluga) 121'7121 UB 1 4,999'.5,007' (Beluga) 1217121 UB 5 5,2685,282' (Beluga) 12/7/21 UB 5 5,291-5,299' (Beluga) 12/6121 UB 5 6,306-5,311' (Beluga) 12/6/21 UB 7 5,3985,413' (Beluga) 12/6/21 Module 18-6,022'-6,032' (Beluga) Module 17-6,21V-6,221' (Beluga) Module 16-6,292'-6,302' (Beluga) Module 15-6,421'-6,431' (Beluga) Module 14-6,509'-6,519' (Beluga) Module 13-6,661'-6,671' (Beluga) Module 12-6,769'-6,779' (Beluga) Module 11-6,819'-6,829' (Beluga) LB-2E - 6,866' - 6,886' (Beluga) Module l0-6,909'-6,919' (Beluga) LB3A - 6,957' - 6,967' (Beluga) Module 9-7,001'-T011' (Beluga) Module 8 -T118'-TUB' (Beluga) Module 7-7,190'-7,200' (Beluga) Module 6-7,301'-T311' (Beluga) Module 5- 7,353'- T363' (Beluga) Module 4-7,437'-7,44T (Tyonek) Well Name & Number: Kenai Beluga Unit 11-7 Lease: Kenai Gas Field County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Dated Completed: 1/6/2006 Completion Fluid: 6% KCL Revised by: Donna Ambruz Last Revison Date: 3/29/2023 Kyle Wiseman Hilcorp Alaska, LLC Geo Tech 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-4558 E-mail: Kyle.Wiseman@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: Date: 03/28/2023 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20230328 Well API #PTD #Log Date Log Company Log Type AOGCC Eset# BCU 12A 50133205300100 214070 2/18/2023 YELLOW JACKET PLUG BCU 18RD 50133205840100 222033 3/9/2023 YELLOW JACKET PERF CLU 10RD 50133205530100 222113 3/2/2023 YELLOW JACKET PERF-GPT-PLUG KBU 11-07 50133205560000 205165 3/3/2023 YELLOW JACKET PERF KBU 11-07 50133205560000 205165 3/1/2023 YELLOW JACKET PLUG KU 14X-6 50133203420000 181092 3/3/2023 YELLOW JACKET CALIPER-SCBL NCI B-02 50883200900100 197210 3/9/2023 AK E-LINE GPT Perf SRU 224-10 50133101380100 222124 2/15/2023 YELLOW JACKET PLUG TBU D-09RD 50733201310100 181080 2/27/2023 AK E-LINE Plug Punch Please include current contact information if different from above. KBU 11-07 50133205560000 205165 3/3/2023 YELLOW JACKET PERF KBU 11-07 50133205560000 205165 3/1/2023 YELLOW JACKET PLUG CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. From:McLellan, Bryan J (OGC) To:Chad Helgeson Cc:Brad Gathman - (C); Reid Edwards; Daniel Yancey; Noel Nocas; Donna Ambruz Subject:RE: KBU 11-07 (PTD# 205-165) Waiver Request for Sundry # 322-494 Date:Wednesday, March 1, 2023 2:13:00 PM Variance to 20AAC25.112(c)(1)(E) is approved to set the CIBP 70’ above the top perf, and placing at least 25’ of cement on top of the plug. Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, AK 99501 Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Chad Helgeson <chelgeson@hilcorp.com> Sent: Wednesday, March 1, 2023 1:37 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Cc: Brad Gathman - (C) <Brad.Gathman@hilcorp.com>; Reid Edwards <reedwards@hilcorp.com>; Daniel Yancey <dyancey@hilcorp.com>; Noel Nocas <Noel.Nocas@hilcorp.com>; Donna Ambruz <dambruz@hilcorp.com> Subject: KBU 11-07 (PTD# 205-165) Waiver Request for Sundry # 322-494 Bryan, We were executing the work for setting the plug on KBU 11-07 (PTD# 205-165). We tagged fill 67’ above the top existing perf @ 3688’. We are requesting a waiver to set the plug at 70ft above the top perf. This still allows us room to add the proposed perfs. Please let us know if we can set the plug at approx. 3685. Thanks Chad Helgeson Operations Engineer Kenai Asset Team 907-777-8405 - O 907-229-4824 - C The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. 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Well must be shut-in if MITIA fails. DSR-8/18/22 10-404 GCW 02/16/23JLC 2/16/2023 2/16/23 Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2023.02.16 14:20:51 -09'00' RBDMS JSB 022123 tĞůů͗<hϭϭͲϬϳ ĂƚĞ͗ϴͬϭϴͬϮϮ Wd͗ϮϬϱͲϭϲϱ tĞůůEĂŵĞ͗<hϭϭͲϬϳ W/EƵŵďĞƌ͗ϱϬͲϭϯϯͲϮϬϱϱϲͲϬϬͲϬϬ ƵƌƌĞŶƚ^ƚĂƚƵƐ͗^/'ĂƐWƌŽĚƵĐĞƌ >ĞŐ͗Eͬ ZĞŐƵůĂƚŽƌǇŽŶƚĂĐƚ͗ŽŶŶĂŵďƌƵǌϳϳϳͲϴϯϬϱ WĞƌŵŝƚƚŽƌŝůůEƵŵďĞƌ͗ϮϬϱͲϭϲϱ &ŝƌƐƚĂůůŶŐŝŶĞĞƌ͗ŚĂĚ,ĞůŐĞƐŽŶ ;ϵϬϳͿϳϳϳͲϴϰϬϱ;ŽͿ ;ϵϬϳͿϮϮϵͲϰϴϮϰ;ĐͿ ^ĞĐŽŶĚĂůůŶŐŝŶĞĞƌ͗ZǇĂŶZƵƉĞƌƚ ;ϵϬϳͿϳϳϳͲϴϱϬϯ;ŽͿ ;ϵϬϳͿϯϬϭͲϭϳϯϲ;ĐͿ ǆƉĞĐƚĞĚ,W͗ Current Bottom Hole Pressure: 947 psi @ 3,552’ TVD Based on KU 11-07X RFT data on 4/2017 Maximum Expected BHP: 1,465 psi @ 3,386’ TVD Based on KU 42-12 RFT data on 6/2020 Maximum Potential Surface Pressure:1,126 psi @ 3,386’ TVD Using 0.1 psi/ft gradient 20 AAC 25.280(b)(4) tĞůů^ƵŵŵĂƌǇ <hϭϭͲϬϳǁĂƐĚƌŝůůĞĚŝŶƚŚĞ<ĞŶĂŝ'ĂƐ&ŝĞůĚŝŶEŽǀĞŵďĞƌϮϬϬϱ͘/ƚǁĂƐĐŽŵƉůĞƚĞĚǁŝƚŚĂϯ͘ϱ͟yWĐŽŵƉůĞƚŝŽŶ ƐƚƌŝŶŐƚŽϳ͕ϴϲϱ͛͘dŚĞǁĞůůǁĂƐ&ƌĂĐ͛ĚŝŶϭϭĚŝĨĨĞƌĞŶƚƐĂŶĚƐǁŝƚŚĂƚŽƚĂůŽĨϮϴϳ͕ϵϴϲůďƐŽĨϮϬͬϰϬKƚƚĂǁĂΘ&ůĞǆ^ĂŶĚ ŝŶDĂǇŽĨϮϬϬϲ͘dŚĞĞůƵŐĂͬhƉƉĞƌdǇŽŶĞŬ^ĂŶĚƐǁĞƌĞƉůƵŐŐĞĚďĂĐŬŝŶƉƌŝůϮϬϮϮ͘dŚĞ^ƚĞƌůŝŶŐWŽŽůϱ͘Ϯ͕WŽŽůϰ ĂŶĚWŽŽůϯ^ĂŶĚƐǁĞƌĞƉĞƌĨŽƌĂƚĞĚŝŶϮϬϮϮĂŶĚĞŝƚŚĞƌǁĞƚĂŶĚŶŽŶƉƌŽĚƵĐƚŝǀĞŽƌĚŝĚŶŽƚŵĂŬĞŐĂƐŝŶĐŽŵŵĞƌĐŝĂů ǀŽůƵŵĞƐ͘ dŚĞŐŽĂůŽĨƚŚŝƐƉƌŽũĞĐƚŝƐƚŽĂďĂŶĚŽŶƚŚĞ<ĞŶĂŝ^ƚĞƌůŝŶŐWŽŽůϯƐĂŶĚƐĂŶĚĂĚĚŶĞǁƉĞƌĨŽƌĂƚŝŽŶƐŝŶƚŚĞhŶĚĞĨŝŶĞĚ ^ƚĞƌůŝŶŐ^ĂŶĚƐ͘ EŽƚĞƐZĞŐĂƌĚŝŶŐtĞůůďŽƌĞŽŶĚŝƚŝŽŶ x ĞŵĞŶƚŽŶĚ>ŽŐĞŵĞŶƚƚŽƉΛϮ͕ϴϭϱ͛ x ƵƌƌĞŶƚtĞůůŽŶĚŝƚŝŽŶƐ͗^/WƌŽĚƵĐĞƌdͬ/ͬKʹϬͬϰϱϬͬϭϭϬƉƐŝ x DĂǆ/ŶĐůŝŶĂƚŝŽŶсϮϱĚĞŐƌĞĞƐĂƚϮ͕ϰϰϵ͛D x ƵƌƌĞŶƚůǇŽƉĞŶŝŶ^ƚĞƌůŝŶŐWŽŽůϯ Ͳ>ŝŶĞƉƌŽĐĞĚƵƌĞ ϭ͘ D/ZhEϮWƵŵƉĂŶĚͲůŝŶĞǁŝƚŚƉƌĞƐƐƵƌĞĐŽŶƚƌŽůĞƋƵŝƉŵĞŶƚ Ϯ͘ WdůƵďƌŝĐĂƚŽƌĂŶĚƉƵŵƉůŝŶĞƐƚŽϮϱϬƉƐŝůŽǁͬϮ͕ϱϬϬƉƐŝŚŝŐŚ ϯ͘ Dh/WǁŝƚŚ'WdƚŽŽů͘ ϰ͘ WƌĞƐƐƵƌĞƵƉǁŝƚŚEϮĂŶĚƉƵƐŚǁĂƚĞƌĂǁĂǇ͕ǀĞƌŝĨǇŝŶŐĚĞƉƚŚŽĨǁĂƚĞƌǁŝƚŚ'Wd;ǁĂƚĞƌŵƵƐƚďĞΕϯ͕ϳϬϬ͛Ϳ ϱ͘ Z/,ĂŶĚƐĞƚϰͲϭͬϮ͟/WƉůƵŐĂƚцϯ͕ϳϯϬ͛D Ă͘ ZĞŐƵůĂƚŝŽŶƐƌĞƋƵŝƌĞƉůƵŐƚŽďĞƐĞƚǁŝƚŚŝŶϱϬ͛ŽĨ^ƚĞƌůŝŶŐWϯƉĞƌĨƐ;ϯ͕ϳϱϱ͛DͿ ϲ͘ Z/,ĂŶĚĚƵŵƉďĂŝůϮϱ͛ŽĨĐĞŵĞŶƚŽŶƚŽƉŽĨƉůƵŐ;ĞƐƚdŽцϯ͕ϳϬϱ͛DͿ ϳ͘ Z/,ĂŶĚƉĞƌĨŽƌĂƚĞ<ĞŶĂŝ^ƚĞƌůŝŶŐ'ĂƐhŶĚĞĨŝŶĞĚWŽŽůƐĂŶĚ WŽŽů ^ĂŶĚ WĞƌĨŽƌĂƚŝŽŶ dŽƉ;DͿ WĞƌĨŽƌĂƚŝŽŶ ŽƚƚŽŵ;DͿ dŽƚĂů&ŽŽƚĂŐĞ ;DͿ hŶĚĞĨŝŶĞĚ ^ƚĞƌůŝŶŐ ϲ цϯ͕ϱϴϬ͛ цϯ͕ϱϴϵ͛ цϵ Ă͘ ŽƌƌĞůĂƚĞƵƐŝŶŐKƉĞŶ,ŽůĞŽƌƌĞůĂƚŝŽŶ>ŽŐƉƌŽǀŝĚĞĚďǇ'ĞŽůŽŐŝƐƚ͘^ĞŶĚƚŚĞĐŽƌƌĞůĂƚŝŽŶƉĂƐƐ ƚŽ'ĞŽůŽŐŝƐƚ;ĂŶŝĞůzĂŶĐǇͿĂŶĚZĞƐĞƌǀŽŝƌŶŐŝŶĞĞƌ;ŚƌŝƐ<ĂŶǇĞƌͿĨŽƌĐŽŶĨŝƌŵĂƚŝŽŶ͘ ď͘ /ŶƐƚĂůůƌǇƐƚĂůŐĂƵŐĞƐ;ŽƌǀĞƌŝĨǇWdƐĂƌĞŽƉĞŶƚŽ^ͿďĞĨŽƌĞƉĞƌĨŽƌĂƚŝŶŐ͘ZĞĐŽƌĚĂƚƵďŝŶŐ ƐƵƌĨĂĐĞƉƌĞƐƐƵƌĞďĞĨŽƌĞĂŶĚĂĨƚĞƌŐƵŶĨŝƌŝŶŐĂƚϬ͕ϱ͕ϭϬ͕ϭϱŵŝŶƌĞĂĚŝŶŐŝŶƚĞƌǀĂůƐ͘ Tag CIBP to confirm set depth. -bjm ƉĞƌĨŽƌĂƚĞ<ĞŶĂŝ^ƚĞƌůŝŶŐ'ĂƐhŶĚĞĨŝŶĞĚWŽŽůƐ ^ƚĞƌůŝŶŐ^ĂŶĚƐ͘ ŽĂďĂŶĚŽŶƚŚĞ<ĞŶĂŝ^ƚĞƌůŝŶŐWŽŽůϯƐĂŶĚƐĂŶĚĂĚĚŶĞǁƉĞƌĨŽƌĂƚŝŽŶƐŝŶƚŚĞhŶĚĞĨŝŶĞĚ tĞůů͗<hϭϭͲϬϳ ĂƚĞ͗ϴͬϭϴͬϮϮ Wd͗ϮϬϱͲϭϲϱ ϴ͘dƵƌŶǁĞůůŽǀĞƌƚŽŽƉĞƌĂƚŝŽŶƐĂŶĚĨůŽǁƚŚĞǁĞůů͘WŽƐƚͲWĞƌĨD/dͲ/ ϵ͘ WĞƌĨŽƌŵD/dͲ/ƚŽϮϬϬϬƉƐŝŽŶĐĞũŽďŝƐĐŽŵƉůĞƚĞĂŶĚǁĞůůŚĂƐďĞĞŶďƌŽƵŐŚƚŽŶůŝŶĞǁŝƚŚŝŶϯϬĚĂǇƐ͘ ƚƚĂĐŚŵĞŶƚƐ͗ ϭ͘ ƵƌƌĞŶƚƐĐŚĞŵĂƚŝĐ Ϯ͘ WƌŽƉŽƐĞĚ^ĐŚĞŵĂƚŝĐ ϯ͘ ^ƚĂŶĚĂƌĚtĞůůƉƌŽĐĞĚƵƌĞʹEϮKƉĞƌĂƚŝŽŶƐ /HDVH 6WDWH &RXQWU\86$ 'DWHG&RPSOHWHG 'RQQD$PEUX]/DVW5HYLVRQ'DWH5HYLVHGE\ &RPSOHWLRQ)OXLG.&/ .HQDL3HQLQVXOD%RURXJK&RXQW\RU3DULVK .HQDL%HOXJD8QLW:HOO1DPH 1XPEHU.HQDL*DV)LHOG $ODVND .%8 3DG )6/ ):/ 6HF715:603HUPLW $3, 3URS'HV$ .%(OHYDWLRQ $*/ :%6''&$3&03 /DWLWXGH 1/RQJLWXGH : ;<6SXG 7'5LJ5HOHDVHG#KUV 3$ 7UHHFURVVLQJ 2WLV 7RSRI&HPHQW&%/ 0' 3%7' 0' 79' 7' 0' 79' ([FDSH6\VWHP'HWDLOV ([FDSHPRGXOHVSODFHG *UHHQ FRQWUROOLQHILUHGPRGXOH <HOORZ FRQWUROOLQHILUHGPRGXOHVWKUX 5HG FRQWROOLQHILUHGPRGXOHVWKUX &HUDPLFIODSSHUYDOYHVEHORZHDFKPRGXOH H[FHSWIRUPRGXOH 3HUIV0'5.% 6WHUOLQJ3 ,62/$7(' 6WHUOLQJ3 6WHUOLQJ3 6WHUOLQJ3 6WHUOLQJ3 6WHUOLQJ3% 8% %HOXJD 8% %HOXJD 8% %HOXJD 8% %HOXJD 8% %HOXJD 8% %HOXJD 0RGXOH %HOXJD 0RGXOH %HOXJD 0RGXOH %HOXJD 0RGXOH %HOXJD 0RGXOH %HOXJD 0RGXOH %HOXJD 0RGXOH %HOXJD 0RGXOH %HOXJD /%( %HOXJD 0RGXOH %HOXJD /%$ %HOXJD 0RGXOH %HOXJD 0RGXOH %HOXJD 0RGXOH %HOXJD 0RGXOH %HOXJD 0RGXOH %HOXJD 0RGXOH 7\RQHN 0RGXOH 7\RQHN0RGXOH 7\RQHN0RGXOH 7\RQHN &,%3# &,%3# Z FPW &,%3# Z FPW &,%3# Z RIFPW ([FDSH6\VWHP'HWDLOV&HUDPLFIODSSHUYDOYHVEHORZHDFKPRGXOHDVIROORZV&RQYHQWLRQDOIODSSHUV 1RIODSSHUEHORZ0RGXOH)ODSSHUV0'5.% 0RGXOH 0RGXOH 0RGXOH 0RGXOH 0RGXOH 0RGXOH 0RGXOH 0RGXOH 0RGXOH 0RGXOH 0RGXOH 0RGXOH 0RGXOH 0RGXOH 0RGXOH 0RGXOH 0RGXOH 0RGXOH 1$ &RQGXFWRU ;SSI 7RS %RWWRP 0' 6XUIDFH&DVLQJ .SSI%7& 7RS %RWWRP 0' 79' KROH&PWZVNVEEOVRI SSJ7\SHFPWUHWXUQV ,QWHUPHGLDWH&DVLQJ/SSI%7& 7RS %RWWRP0' 79' KROH&PWZVNVEEOVRI SSJ&ODVV*/HDG VNVEEOV RISSJ&ODVV*7DLO&DOF72& ORVVHV 3URGXFWLRQ&DVLQJ /SSI(8( 7RS %RWWRP UG 0' 79' KROH&PWZVNVEEOVRI SSJ&ODVV*UHWXUQV ^,Dd/ >ͲϮ >Ͳϯ hƚŽhϳ ^ƚĞƌůŝŶŐ /HDVH 6WDWH &RXQWU\86$ .HQDL*DV)LHOG $ODVND.HQDL3HQLQVXOD%RURXJK&RXQW\RU3DULVK .HQDL%HOXJD8QLW:HOO1DPH 1XPEHU 'DWHG&RPSOHWHG &KDG+HOJHVRQ /DVW5HYLVRQ'DWH5HYLVHGE\ &RPSOHWLRQ)OXLG.&/ .%8 3DG )6/ ):/ 6HF715:603HUPLW $3, 3URS'HV$ .%(OHYDWLRQ $*/ :%6''&$3&03 /DWLWXGH 1/RQJLWXGH : ; 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Donna Ambruz; Cody Terrell Subject:RE: [EXTERNAL] RE: KBU 11-07 (PTD 205-165; Sundry 322-494) - Proposed Perforations Date:Friday, September 23, 2022 3:42:51 PM Steve, That is a good catch. KU 42-12 patch did not get completed, as the tubing where we tried to patch it was deformed, and the patch would not fit to isolate those perfs. We are still planning to plug those perfs, but we are going to use a rig for that work, and our current bosses have asked us, due to budget reasons, this year to wait for the plug back in KU 42-12 with the rig in 2023. I think we would like to cancel this sundry, and submit a spacing exception and we can resubmit the sundry after we submit the spacing exception and try to keep this paperwork cleaner for the work on this well. How does that sound? If you have a better idea or thought on how to handle it, we are open to it. Chad From: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Wednesday, September 21, 2022 3:06 PM To: Chad Helgeson <chelgeson@hilcorp.com> Cc: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov>; Donna Ambruz <dambruz@hilcorp.com>; Cody Terrell <cterrell@hilcorp.com> Subject: RE: [EXTERNAL] RE: KBU 11-07 (PTD 205-165; Sundry 322-494) - Proposed Perforations Chad, Another spacing-related question to the proposed Sterling A sands perfs in KBU 11-07: Were the Sterling Upper Undefined Gas Pool perfs in the Sterling A sands from 4203’-4216’ MD in nearby well KU 42-12 isolated by patch as proposed in Hilcorp’s Sundry Application 322-203? I haven’t found a corresponding Sundry Report in AOGCC’s well history files or in our Processing queue confirming that isolation work was indeed performed. If not, what is the distance from those existing perfs to the proposed perforations in KBU 11-07? Are they in the same governmental section? Please note that 20 AAC 25.055(a)(4) states: “(4) if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool.” Thanks and stay safe, Steve Davies Alaska Oil and Gas Conservation Commission (AOGCC) 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 Steve Davies at 907-793-1224 or steve.davies@alaska.gov. From: Chad Helgeson <chelgeson@hilcorp.com> Sent: Thursday, September 15, 2022 12:22 PM To: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Cc: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov>; Donna Ambruz <dambruz@hilcorp.com>; Cody Terrell <cterrell@hilcorp.com> Subject: RE: [EXTERNAL] RE: KBU 11-07 (PTD 205-165; Sundry 322-494) - Proposed Perforations Steve, Actually I was incorrect, the KU 21-07X well is not open and is currently plugged back. In 2020 a CIBP was installed in the tubing and 35ft of cement was added. We are not able to find any wells within 1500ft of KBU 11-07 that are currently open to formation. Does this answer your question? Let me know if you need any additional information from us on the spacing for this well. Chad From: Chad Helgeson Sent: Monday, September 12, 2022 11:33 AM To: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Cc: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov>; Donna Ambruz <dambruz@hilcorp.com> Subject: RE: [EXTERNAL] RE: KBU 11-07 (PTD 205-165; Sundry 322-494) - Proposed Perforations Steve, We just completed our search of other wells open in this zone and we did find one in the KU 21-07X that is currently open in the same sand at 1,255ft away. Friday we started our internal conversations of what we want to do with this well, and either ask for a spacing exception or plug back the 21-07X. We will get you that answer later this week, but we can change the proposed start date to October 1st. We will be in touch on our plans for it. Chad From: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Thursday, September 8, 2022 12:54 PM To: Chad Helgeson <chelgeson@hilcorp.com> Cc: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: RE: [EXTERNAL] RE: KBU 11-07 (PTD 205-165; Sundry 322-494) - Proposed Perforations Hi Chad, I don’t believe Hilcorp has replied to my emails (below) concerning whether or not Hilcorp’s proposed Sterling A perforations in an undefined gas pool meet spacing requirements. I’d just like to keep this application moving through AOGCC’s review process. The start date for the operations is listed on the Sundry Application form as 9/1/22. What is Hilcorp’s revised start date for the proposed operations? Thanks and stay safe, Steve Davies Alaska Oil and Gas Conservation Commission (AOGCC) 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 CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. 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 Steve Davies at 907-793-1224 or steve.davies@alaska.gov. From: Chad Helgeson <chelgeson@hilcorp.com> Sent: Friday, August 26, 2022 11:02 AM To: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Cc: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: RE: [EXTERNAL] RE: KBU 11-07 (PTD 205-165; Sundry 322-494) - Proposed Perforations Thanks, Its no problem, its our responsibility to get this to you. From: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Friday, August 26, 2022 11:01 AM To: Chad Helgeson <chelgeson@hilcorp.com> Cc: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: RE: [EXTERNAL] RE: KBU 11-07 (PTD 205-165; Sundry 322-494) - Proposed Perforations Thank you Chad. I appreciate your help with this. Thanks again and stay safe, Steve Davies AOGCC 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 Steve Davies at 907-793-1224 or steve.davies@alaska.gov. From: Chad Helgeson <chelgeson@hilcorp.com> Sent: Friday, August 26, 2022 10:00 AM To: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Cc: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: RE: [EXTERNAL] RE: KBU 11-07 (PTD 205-165; Sundry 322-494) - Proposed Perforations Steve, Yes, I am having our land department confirm all our wellbore info and they are a little backed up this week. We haven’t forgotten, but we want to double check all our wells information is correct, so when we give you the answers we are 100% sure it is accurate. I am told we might be another week out till we get all that data, so you may not hear back from us until after labor day on this. CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. Chad From: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Friday, August 26, 2022 8:45 AM To: Chad Helgeson <chelgeson@hilcorp.com> Cc: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: [EXTERNAL] RE: KBU 11-07 (PTD 205-165; Sundry 322-494) - Proposed Perforations Hi Chad, I don’t believe you’ve replied to my email below concerning whether or not Hilcorp’s proposed Sterling A perforations in an undefined gas pool meet spacing requirements. Thanks and stay safe, Steve Davies Alaska Oil and Gas Conservation Commission (AOGCC) 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 Steve Davies at 907-793-1224 or steve.davies@alaska.gov. From: Davies, Stephen F (OGC) Sent: Monday, August 22, 2022 12:10 PM To: 'chelgeson@hilcorp.com' <chelgeson@hilcorp.com> Subject: KBU 11-07 (PTD 205-165; Sundry 322-494) - Proposed Perforations Chad, Hilcorp’s proposed perforations in the undefined Sterling A sands are regulated by statewide regulation 20 AAC 25.055. I have a few questions: Which other wells in the KBU are perforated in the Sterling A sands? Will KBU 11-07 be the only well within Section 7 perforated in these undefined sands? What is the distance from the proposed perforations in KBU 11-07 to the perforations in the nearest well that are open to the undefined Sterling A? Thanks and stay safe, Steve Davies Alaska Oil and Gas Conservation Commission (AOGCC) 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 Steve Davies at 907-793-1224 or steve.davies@alaska.gov. 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The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently deletethis message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. Kaitlyn Barcelona Hilcorp Alaska, 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 or FAX to 907 564-4422 Received By: Date: Date: 07/11/2022 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL Well API # PTD # Log Date Log Company Log Type Notes BCU 18RD 50133205840100 222033 6/11/2022 Yellowjacket GPT-PERF + Report BCU 18RD 50133205840100 222033 6/18/2022 Yellowjacket GPT-PERF + Report BCU 18RD 50133205840100 222033 6/7/2022 Yellowjacket GPT-PLUG + Report BCU 24 50133206390000 214112 6/16/2022 Halliburton PPROF BCU 24 50133206390000 214112 5/23/2022 Yellowjacket GPT-PERF + Report BCU 24 50133206390000 214112 5/26/2022 Yellowjacket GPT-PERF + Report BCU 7A 50133202840100 214060 6/21/2022 Yellowjacket CBL BCU 7A 50133202840100 214060 6/15/2022 Yellowjacket GAMMA RAY + Report BRU 232-26 50283200770000 184138 5/25/2022 Yellowjacket CBL CLU 01RD 50133203230100 203129 5/19/2022 Yellowjacket PERF + Report CLU 01RD 50133203230100 203129 5/24/2022 Yellowjacket PERF + Report CLU 09 50133205440000 204161 5/27/2022 Yellowjacket PERF + Report CLU-1RD 50133203230100 203129 5/28/2022 Halliburton PPROF + Report END 1-17A 50029221000100 196199 5/26/2022 Halliburton LDL END 1-45 50029219910000 189124 5/23/2022 Halliburton LDL + Report END 3-17F 50029219460600 203216 6/15/2022 AK E-Line PLUG CUT FALLS CREEK 3 50133205240000 203102 6/4/2022 Yellowjacket PERF + Report HVB B-16 50231200400000 212133 6/14/2022 AK E-Line CIBP KALOTSA 1 50133206570000 216132 7/7/2022 Yellowjacket PERF + Report KBU 11-07 50133205560000 205165 6/16/2022 Yellowjacket GPT-PERF + Report KBU 11-07 50133205560000 205165 6/20/2022 Yellowjacket GPT-PERF + Report KBU 33-06X 50133205290000 203183 6/22/2022 Yellowjacket CBL MPU B-28 50029235660000 216027 5/27/2022 Halliburton LDL MPU B-28 50029235660000 216027 5/27/2022 Halliburton MFC + Report MPU B-30 50029235710000 216153 5/18/2022 Halliburton PERF MPU E-06 50029221540000 191048 5/28/2022 Halliburton MFC + Report Kaitlyn Barcelona Hilcorp Alaska, 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 or FAX to 907 564-4422 Received By: Date: MPU E-35 50029236150000 218152 6/15/2022 Halliburton MFC + Report MPU L-50 50029235550000 215132 6/24/2022 Read COIL FLAG PAXTON 10 50133206910000 220064 5/27/2022 Halliburton PPROF + Report PBU C-24B 50029208160200 212063 5/28/2022 Halliburton PPROF + Report PBU C-24B 50029208160200 212063 5/28/2022 Halliburton RBT PBU GNI-03 50029228200000 197189 6/25/2022 Read CALIPER PBU GNI-03 50029228200000 197189 6/25/2022 Read TEMP-PRESS PBU K-01 50029209980000 183121 6/21/2022 Halliburton PPROF + Report PBU M-13A 50029205220100 201165 5/27/2022 Halliburton TMD3D-WFL + Report PBU NGI-05 50029201960000 176014 6/7/2022 Halliburton CAST PBU W-01A 50029218660100 203176 6/8/2022 Halliburton RBT SRU 241-33 50133206630000 217047 6/13/2022 Yellowjacket PERF SRU 241-33B 50133206960000 221053 5/25/2022 Halliburton TEMP-PRESS SRU 32A-33 50133101640100 191014 6/11/2022 AK E-Line PPROF Please include current contact information if different from above. BCU 18RD PTD:222-033 T36747 BCU 24 PTD:214-112 T36748 BCU 7A PTD:214-060 T36749 BRU 232-26 PTD:184-138 T36750 CLU 01RD PTD:203-129 T36751 CLU 09 PTD: 204-161 T36752 CLU1RD PTD:203-129 T36751 END 1-17A PTD:196-199 T36753 END 1-45 PTD:189-124 T36754 END 3-17F PTD:203-216 T36755 Falls Creek 3 PTD:203-102 T36756 HVB B-16 PTD:212-133 T36757 Kalosta 1 PTD:216-132 T36758 KBU 11-7 PTD:205-165 T36759 KBU 33-06X PTD:203-183 T36760 MPU B-28 PTD:216-027 T36761 MPU B-30 PTD:216-153 T36762 MPU E-06 PTD: 191-048 T36763 MPU E-35 PTD:218-152 T36764 MPU L-50 PTD:215-132 T36765 Paxton 10 PTD:220-064 T36766 PBU C-24B PTD:212-063 T36767 PBU GNI-03 PTD:197-189 T36768 PBU K-01 PTD:183-121 T36769 PBU M-13A PTD:201-165 T36770 PBU NGI-05 PTD:176-014 T36771 PBU W-01A PTD:203-176 T36772 SRU 241-33 PTD:217-047 T36773 SRU 241-33B PTD:221-053 T36774 SRU 32A-33 PTD: 191-014 T36775 Kayla Junke Digitally signed by Kayla Junke Date: 2022.07.12 12:56:51 -08'00' 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: 05/23/2022 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 9950 DATA TRANSMITTAL KBU 11-7 (PTD 205-165) GPT-PLUG 5/09/2022 GPT-PLUG 5/14/2022 Please include current contact information if different from above. PTD:205-165 T36650 T36651 Kayla Junke Digitally signed by Kayla Junke Date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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: 5/10/2022 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL KBU 11-07 (PTD 205-165) CBL 4/22/2022 Please include current contact information if different from above. PTD:205-165 T36594 Kayla Junke Digitally signed by Kayla Junke Date: 2022.05.11 10:14:34 -08'00' 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: 5/09/2022 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL KBU 11-07 (PTD 205-165) CBL/CIBP 4/14/2022 KBU 11-07 (PTD 205-165) Perf 4/24/2022 Please include current contact information if different from above. PTD:205-165 T36572 T36573 Kayla Junke Digitally signed by Kayla Junke Date: 2022.05.10 09:43:41 -08'00' CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. From:Todd Sidoti - (C) To:Regg, James B (OGC);DOA AOGCC Prudhoe Bay;Brooks, Phoebe L (OGC) Subject:KBU 11-07 Corrected BOPE Test Sheet Date:Wednesday, April 27, 2022 3:45:05 PM Attachments:KBU 11-07 BOP AOGCC Test Sheet Rev1.xlsx Some people who received this message don't often get email from todd.sidoti@hilcorp.com. Learn why this is important Hello, Please find attached corrected BOP test form. Regards, Todd Todd Sidoti | Kenai Field Engineer | Hilcorp Alaska | 907-632-4113 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. .HQDL%HOXJD8QLW 37' STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION *All BOPE reports are due to the agency within 5 days of testing* SSu b m i tt t o :jim.regg@alaska.gov; AOGCC.Inspectors@alaska.gov; phoebe.brooks@alaska.gov Owner/Contractor: Rig No.:8 DATE: 4/23/22 Rig Rep.: Rig Phone: (907)887-1766 Operator: Op. Phone:(907)632-4113 Rep.: E-Mail Well Name: PTD # 205-165 Sundry #322-193 Operation: Drilling: Workover: x Explor.: Test: Initial: x Weekly: Bi-Weekly: Other: Rams:250/3500 Annular:N/A Valves:250/3500 MASP:1026 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.P Well Sign P Upper Kelly 0NA Housekeeping P Rig P Lower Kelly 0NA PTD On Location P Hazard Sec.P Ball Type 0NA Standing Order Posted NA Misc.NA Inside BOP 0NA FSV Misc 0NA BOP STACK:Quantity Size/Type Test Result MUD SYSTEM:Visual Alarm Stripper 1 1.75"P Trip Tank NA NA Annular Preventer 0 N/A NA Pit Level Indicators NA NA #1 Rams 1 1.75" BS P Flow Indicator NA NA #2 Rams 1 1.75" PS P Meth Gas Detector NA NA #3 Rams 0 N/A NA H2S Gas Detector NA NA #4 Rams 0 N/A NA MS Misc 0NA #5 Rams 0 N/A NA #6 Rams 0 N/A NA Quantity Test Result Choke Ln. Valves 2 2"P Inside Reel valves 1P HCR Valves 0 N/A NA Kill Line Valves 2 2"P Check Valve 0 N/A NA ACCUMULATOR SYSTEM: BOP Misc 0 N/A NA Time/Pressure Test Result System Pressure (psi)3100 P CHOKE MANIFOLD:Pressure After Closure (psi)2400 P Quantity Test Result 200 psi Attained (sec)4 P No. Valves 5P Full Pressure Attained (sec)16 P Manual Chokes 2P Blind Switch Covers: All stations Yes Hydraulic Chokes 0NA Nitgn. Bottles # & psi (Avg.):NA CH Misc 0NA ACC Misc 0NA Test Results Number of Failures:0 Test Time:2.5 Hours Repair or replacement of equipment will be made within N/A days. Remarks: AOGCC Inspection 24 hr Notice Yes Date/Time 4/22/22 10:14 Waived By Test Start Date/Time:4/23/2022 13:30 (date) (time)Witness Test Finish Date/Time:4/23/2022 16:00 BOPE Test Report Notify the AOGCC of repairs with written confirmation to: AOGCC.Inspectors@alaska.gov Jim Regg Fox Accumulator precharge pressure 1400 psi Terence Rais Hilcorp Alaska Todd Sidoti KBU 11-07 Test Pressure (psi): Todd.Sidoti@hilcorp.com Form 10-424 (Revised 02/2022) 2022-0423_BOP_Fox8_KBU_11-7 9 9 9 9999 9 9 9 -5HJJ 4/23/22 CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. From:McLellan, Bryan J (OGC) To:Chad Helgeson Cc:Donna Ambruz; Todd Sidoti - (C) Subject:RE: KBU 11-07 (PTD# 205-165) Sundry # 322-193 Date:Sunday, April 24, 2022 11:50:00 AM Chad, The cement looks good with a top around 2815’ md. You have approval to proceed with the perfs. Bryan Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, AK 99501 Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Chad Helgeson <chelgeson@hilcorp.com> Sent: Sunday, April 24, 2022 11:48 AM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Cc: Donna Ambruz <dambruz@hilcorp.com>; Todd Sidoti - (C) <Todd.Sidoti@hilcorp.com> Subject: RE: KBU 11-07 (PTD# 205-165) Sundry # 322-193 Bryan, Try this file. Chad From: Chad Helgeson Sent: Friday, April 22, 2022 9:07 PM To: Bryan McLellan <Bryan.mclellan@alaska.gov> Cc: Donna Ambruz <dambruz@hilcorp.com>; Todd Sidoti - (C) <Todd.Sidoti@hilcorp.com>; Cole Bartlewski <cbartlewski@hilcorp.com> Subject: KBU 11-07 (PTD# 205-165) Sundry # 322-193 Bryan, Please find attached the CBL for the annulus cement job we completed on KBU 11-07. The cement top was found at 2810’. Our proposed top of perfs for the approved interval is 4,400ft. We will be completing the coil blowdown work on the well this weekend and perforating as early as Sunday if you give us approval based on this CBL. Please let us know if we have approval to perforate. Thanks Chad Helgeson Sent from my iPhone The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. 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Provide 24 hrs notice for AOGCC to witness cement isolation plug tag and MIT-T (steps 6&7). AOGCC review of CBL and approval required before adding perfs. Provide 24 hrs notice for AOGCC to witness MITIA after returning to production, within 30 days. Update wellbore diagram to show calculated top of cement outside 9-5/8" casing on the 10-404. See attached diagrams. X Sterling Pool 5 - bjm BJM 4/7/22 SFD 4/7/2022 dts 4/8/2022 Jeremy Price Digitally signed by Jeremy Price Date: 2022.04.08 11:40:06 -08'00' RBDMS SJC 041222 tĞůů͗<hϭϭͲϬϳ ĂƚĞ͗ϯͬϮϱͬϮϮ Wd͗ϮϬϱͲϭϲϱ tĞůůEĂŵĞ͗<hϭϭͲϬϳW/EƵŵďĞƌ͗ϱϬͲϭϯϯͲϮϬϱϱϲͲϬϬͲϬϬ ƵƌƌĞŶƚ^ƚĂƚƵƐ͗^/'ĂƐWƌŽĚƵĐĞƌ>ĞŐ͗Eͬ ZĞŐƵůĂƚŽƌǇŽŶƚĂĐƚ͗ŽŶŶĂŵďƌƵǌϳϳϳͲϴϯϬϱWĞƌŵŝƚƚŽƌŝůůEƵŵďĞƌ͗ϮϬϱͲϭϲϱ &ŝƌƐƚĂůůŶŐŝŶĞĞƌ͗ŚĂĚ,ĞůŐĞƐŽŶ;ϵϬϳͿϳϳϳͲϴϰϬϱ;ŽͿ;ϵϬϳͿϮϮϵͲϰϴϮϰ;ĐͿ ^ĞĐŽŶĚĂůůŶŐŝŶĞĞƌ͗ZǇĂŶZƵƉĞƌƚ;ϵϬϳͿϳϳϳͲϴϱϬϯ;ŽͿ;ϵϬϳͿϯϬϭͲϭϳϯϲ;ĐͿ ƵƌƌĞŶƚŽƚƚŽŵ,ŽůĞWƌĞƐƐƵƌĞ͗ϳϯϴƉƐŝΛϲ͕ϱϭϵdsĂƐĞĚŽŶƌĞĐĞŶƚW>dĨƌŽŵ<hϭϭͲϬϳ ŽŶϭϮͬϲͬϮϬϮϭ DĂǆŝŵƵŵǆƉĞĐƚĞĚ,W͗ϭ͕ϰϰϯƉƐŝΛϰ͕ϭϲϴ͛dsĂƐĞĚŽŶ<hϭϭͲϬϳyZ&dĚĂƚĂŽŶ ϰͬϮϬϭϳ DĂǆŝŵƵŵWŽƚĞŶƚŝĂů^ƵƌĨĂĐĞWƌĞƐƐƵƌĞ͗Εϭ͕ϬϮϲƉƐŝΛϰ͕ϭϲϴ͛dshƐŝŶŐϬ͘ϭƉƐŝͬĨƚŐƌĂĚŝĞŶƚϮϬ Ϯϱ͘ϮϴϬ;ďͿ;ϰͿ tĞůů^ƵŵŵĂƌǇ <hϭϭͲϬϳǁĂƐĚƌŝůůĞĚŝŶƚŚĞ<ĞŶĂŝ'ĂƐ&ŝĞůĚŝŶEŽǀĞŵďĞƌϮϬϬϱ͘/ƚǁĂƐĐŽŵƉůĞƚĞĚǁŝƚŚĂϯ͘ϱ͟yWĐŽŵƉůĞƚŝŽŶ ƐƚƌŝŶŐƚŽϳ͕ϴϲϱ͛͘dŚĞǁĞůůǁĂƐ&ƌĂĐ͛ĚŝŶϭϭĚŝĨĨĞƌĞŶƚƐĂŶĚƐǁŝ ƚŚĂƚŽƚĂůŽĨϮϴϳ͕ϵϴϲůďƐŽĨϮϬͬϰϬKƚƚĂǁĂΘ&ůĞǆ^ĂŶĚ ŝŶDĂǇŽĨϮϬϬϲ͘/ƚŝƐĐƵƌƌĞŶƚůǇĐŽŵƉůĞƚĞĚŝŶƚŚĞĞůƵŐĂͬhƉƉĞƌdǇŽŶĞŬƐĂŶĚ;KϱϭϬZƵůĞηϭĨͿ͘ĂƉŝůůĂƌǇƐƚƌŝŶŐ ǁĂƐŝŶƐƚĂůůĞĚŝŶϮϬϬϴĂŶĚƉƵůůĞĚŝŶϮϬϭϰ͘/ƚǁĂƐĂƐƚĞĂĚǇĞůƵŐĂͬhƉƉĞƌdǇŽŶĞŬ'ĂƐWŽŽůƉƌŽĚƵĐĞƌƵŶƚŝůƵƉƉĞƌ ĞůƵŐĂƉĞƌĨŽƌĂƚŝŽŶƐǁĞƌĞĂĚĚĞĚŝŶϮϬϮϭĂŶĚĚŝĞĚĂĨƚĞƌϯǁĞĞŬƐŽĨƉƌŽĚƵĐƚŝŽŶ͘ dŚĞŐŽĂůƐŽĨƚŚŝƐƉƌŽũĞĐƚŝƐƚŽƉƌŽƉĞƌůǇĂďĂŶĚŽŶƚŚĞĞůƵŐĂͬhƉƉĞƌdǇŽŶĞŬWŽŽů͕ĐĞŵĞŶƚƚŚĞϯͲϭͬϮ͟ǆϵͲϱͬϴ͟ ĂŶŶƵůƵƐĨŽƌĨƵƚƵƌĞĂĐĐĞƐƐŽĨƉĞƌĨŽƌĂƚŝŶŐƚŚĞ^ƚĞƌůŝŶŐWŽŽůϯ͕ϰΘϱƐĂŶĚƐ͘;dŚŝƐǁŝůůĂůůŽǁĨŽƌƌĞĐŽŵƉůĞƚŝŽŶĂŶĚ ŽĨĨƚĂŬĞĂďŽǀĞƚŚĞĐƵƌƌĞŶƚƉĂĐŬĞƌ͕ǁŚŝůĞƐƚŝůůŵĂŝŶƚĂŝŶŝŶŐĂŶŝƐŽůĂƚĞĚĂŶĚŵŽŶŝƚŽƌĂďůĞĂŶŶƵůƵƐ͘ͿdŚĞǁĞůůǁŝůůďĞ ƉĞƌĨŽƌĂƚĞĚŝŶƚŚĞ^ƚĞƌůŝŶŐWŽŽůϱ͘ EŽƚĞƐZĞŐĂƌĚŝŶŐtĞůůďŽƌĞŽŶĚŝƚŝŽŶ xĞŵĞŶƚŽŶĚ>ŽŐĞŵĞŶƚƚŽƉΛϰ͕ϱϯϬ͛ xƵƌƌĞŶƚtĞůůŽŶĚŝƚŝŽŶƐ͗^/WƌŽĚƵĐĞƌdͬ/ͬKʹϯϴͬϱϰϱͬϭϭϴƉƐŝ xD/dͲ/ƚŽϯ͕ϬϬϬƉƐŝŽŶϭͬϮϬͬϮϮ;K'tŝƚŶĞƐƐĞĚͿ xDĂǆ/ŶĐůŝŶĂƚŝŽŶсϮϱĚĞŐƌĞĞƐĂƚϮ͕ϰϰϵ͛D EŽƚĞƐZĞŐĂƌĚŝŶŐtĞůůďŽƌĞŽŶĚŝƚŝŽŶ xZĞĐĞŶƚŚŝƐƚŽƌǇ oϭϮͬϮϴͬϮϮ͗Ϯ͘ϳϱ͟>/;ĨůƵŝĚƚĂŐΛϰ͕ϬϬϬ͛ͿƚĂŐĂƚϲ͕ϵϲϴ͛͘ĂŝůĞĚƐĂŶĚĂƚϲ͕ϵϲϴ͛ Ͳ>ŝŶĞƉƌŽĐĞĚƵƌĞ ϭ͘D/ZhͲůŝŶĞĂŶĚƉƌĞƐƐƵƌĞĐŽŶƚƌŽůĞƋƵŝƉŵĞŶƚWdůƵďƌŝĐĂƚŽƌϮϱϬƉƐŝůŽǁͬϯ͕ϬϬϬƉƐŝŚŝŐŚ͘ Ϯ͘DhϯͲϭͬϮ͟/W ϯ͘Z/,ĂŶĚƐĞƚϯͲϭͬϮ͟/WĂƚцϰ͕ϵϮϱ͛D Ă͘ZĞŐƵůĂƚŝŽŶƐĐĂůůĨŽƌƉůƵŐƚŽďĞƐĞƚǁŝƚŚŝŶϱϬ͛ŽĨhƉĞƌĨƐ;ϰ͕ϵϱϴ͛DͿ ď͘hƐĂŶĚŝƐƚŚĞŚŝŐŚĞƐƚŽƉĞŶĞůƵŐĂͬhƉƉĞƌdǇŽŶĞŬƐĂŶĚ ϰ͘Z/,ĂŶĚĚƵŵƉďĂŝůϮϱ͛ŽĨĐĞŵĞŶƚŽŶƚŽƉŽĨƉůƵŐ;ĞƐƚdŽцϰϵϬϬ͛DͿ ϱ͘>ŽĂĚƚƵďŝŶŐǁŝƚŚƐŽƵƌĐĞͬůĞĂƐĞǁĂƚĞƌůƵďƌŝĐĂƚĞΘďůĞĞĚ Đ͘ΕϰϮďďůts Ě͘>ŝŬĞůǇǁŽŶ͛ƚŶĞĞĚƚŚĂƚŵƵĐŚŝĨǁĞůůŚĂƐĂ&>ƉƌĞƐĞŶƚĂůƌĞĂĚǇ ϲ͘ZƵŶĂŶĞǁ>ƚŽĚĞƚĞƌŵŝŶĞŶĞǁdKĨŽƌĐƵƚ͘Tag TOC in tubing to confirm plug depth. - bjm Sterling Gas Pool 5.1 (see CO 510B) SFD 4/7/2022 tĞůů͗<hϭϭͲϬϳ ĂƚĞ͗ϯͬϮϱͬϮϮ Wd͗ϮϬϱͲϭϲϱ ϳ͘D/dͲdƚŽϯϬϬϬƉƐŝ;ŶŽĐŚĂƌƚƌĞƋƵŝƌĞĚͿ ϴ͘DhĂŶĚZ/,ǁŝƚŚƚƵďŝŶŐĐƵƚƚĞƌŽƌƉƵŶĐŚĞƌ ϵ͘,ŽůĚŝŶŐĂƚůĞĂƐƚϰϬϬƉƐŝŽŶƚŚĞƚƵďŝŶŐ͕ĐƵƚͬƉƵŶĐŚĂƚцϰ͕ϱϬϬ͛D;ŽƌĂƚĂĚĞƉƚŚƚŚĞ>ĚŽĞƐŶŽƚƐŚŽǁ ĂŶǇĐĞŵĞŶƚͿ Ğ͘ϯͲϭͬϮ͟ǆϵͲϱͬϴ͟ĂŶŶƵůƵƐŚĂƐϱϬďďůƐĨŽƌD^^ǁĞĞƉΛϭϬ͘ϱƉƉŐ Ĩ͘ZĞŵĂŝŶĚĞƌŝƐϵ͘ϵƉƉŐĚƌŝůůŝŶŐŵƵĚ ϭϬ͘ƐƚĂďůŝƐŚĐŝƌĐƵůĂƚŝŽŶĨƌŽŵƚƵďŝŶŐƚŽ/͘ Ő͘DĂǇŶĞĞĚƚŽǁŽƌŬĐŝƌĐƵůĂƚŝŽŶďŽƚŚĚŝƌĞĐƚŝŽŶƐƚŽďƌĞĂŬůŽŽƐĞĚƌŝůůŝŶŐŵƵĚ ŽŶƚŝŶŐĞŶĐǇ͗ŝĨĐŝƌĐƵůĂƚŝŽŶĐĂŶ͛ƚďĞĞƐƚĂďůŝƐŚĞĚĂƚůĞĂƐƚϮďƉŵĐŽŶƚĂĐƚK͘DĂǇŚĂǀĞƚŽĐŽŵĞƵƉŚŽůĞĂŶĚ ƉƵŶĐŚͬĐƵƚĂŐĂŝŶ͘ĂĐŬƵƉĐƵƚͬƉƵŶĐŚĚĞƉƚŚсцϰϰϱϬ͛D ϭϭ͘KŶĐĞĐŝƌĐƵůĂƚŝŽŶŝƐĞƐƚĂďůŝƐŚĞĚďŽƚŚĚŝƌĞĐƚŝŽŶƐ͕ƐǁĂƉǁĞůůŽǀĞƌƚŽĂůůƐŽƵƌĐĞͬůĞĂƐĞǁĂƚĞƌĂƚŵĂǆƌĂƚĞ͗ Ś͘/ǀŽůƵŵĞΕϮϴϱďďůƐ ŝ͘dƵďŝŶŐǀŽůƵŵĞΕϯϵďďůƐ ũ͘tĂŶƚĂƚůĞĂƐƚϭƐƵƌĨĂĐĞƚŽƐƵƌĨĂĐĞǀŽůƵŵĞƉƵŵƉĞĚ;ϯϮϲďďůƐͿ Ŭ͘WƵŵƉĂĚĚŝƚŝŽŶĂůǁĂƚĞƌŝĨƌĞƚƵƌŶƐĂƌĞŶ͛ƚĐůĞĂŶ ů͘WƌĞĨĞƌĞŶĐĞƚŽƚĂŬĞƌĞƚƵƌŶƐƵƉƚŚĞƚƵďŝŶŐ ϭϮ͘D/dͲdǆ/ƚŽϯϬϬϬƉƐŝ;ŶŽĐŚĂƌƚƌĞƋƵŝƌĞĚͿ ϭϯ͘ZDK>ĂŶĚƉƵŵƉƚƌƵĐŬ ϯͲϭͬϮ͟ǆϵͲϱͬϴ͟/ĞŵĞŶƚŝŶŐWƌŽĐĞĚƵƌĞ ϭϰ͘ZhĐĞŵĞŶƚƚƌƵĐŬ͕WdůŝŶĞƐƚŽϮϱϬƉƐŝůŽǁͬϯϬϬϬƉƐŝŚŝŐŚ͘ ϭϱ͘DŝǆĂŶĚƉƵŵƉϭϱ͘ϯƉƉŐĐĞŵĞŶƚĚŽǁŶƚŚĞƚƵďŝŶŐ͕ƚĂŬŝŶŐƌĞƚƵƌŶƐƵƉƚŚĞϯͲϭͬϮ͟ǆϵͲϱͬϴ͟/͘DĂŶĂŐĞ/ ďĂĐŬƉƌĞƐƐƵƌĞƚŽŬĞĞƉƚŚĞĐĞŵĞŶƚĨƌŽŵƌƵŶŶŝŶŐĂǁĂǇĚŽǁŶƚƵďŝŶŐ ϭϲ͘WůĂŶŶĞĚdKŝŶ/ŝƐцϯϬϬϬ͛D͘;цϴϵďďůƐƌĞƋƵŝƌĞĚͿ Ă͘Ϭ͘ϬϲϭϯďďůͬĨƚǆϭ͕ϰϱϬĨƚсϴϵďďůƐ ϭϳ͘ŝƐƉůĂĐĞƉĞƌK;ƵƐĞĚĂƌƚĂŶĚĐĞŵĞŶƚŚĞĂĚĨŽƌĚƌŽƉƉŝŶŐͿĚŝƐƉůĂĐ ĞĚĂƌƚĚŽǁŶƚŽƚƵďŝŶŐĐƵƚ͕ΕϯϵďďůƐ ď͘Ϭ͘ϬϬϴϳďďůͬĨƚǆϰ͕ϰϱϬĨƚсϯϵďďůƐ ϭϴ͘^/ŵĂƐƚĞƌǀĂůǀĞĂŶĚ/ĂŶĚƚƌĂƉƉƌĞƐƐƵƌĞŽŶƚŚĞƚƵďŝŶŐ;ΕϱϯϴƉƐŝͿ ϭϵ͘ZDKĐĞŵĞŶƚĞƌƐ dWƌŽĐĞĚƵƌĞ ϮϬ͘D/Zh>ĂŶĚƉƌĞƐƐƵƌĞĐŽŶƚƌŽůĞƋƵŝƉŵĞŶƚ Ϯϭ͘WdůƵďƌŝĐĂƚŽƌƚŽϮϱϬƉƐŝ>Žǁͬϯ͕ϬϬϬƉƐŝ,ŝŐŚ ϮϮ͘Z/,ĂŶĚƚĂŐdKĂŶĚĐŽŵƉůĞƚĞ> Ϯϯ͘Z> Ϯϰ͘D/dͲ/ƚŽϮϬϬϬƉƐŝĨŽƌϯϬĐŚĂƌƚĞĚŵŝŶƵƚĞƐ Ϯϱ͘D/Zhdh͕ϮϰŚƌŶŽƚŝĐĞĨŽƌKWƚĞƐƚ Ϯϲ͘ŽŶĚƵĐƚKWƚĞƐƚƚŽϮϱϬƉƐŝ>ŽǁͬϯϱϬϬƉƐŝ,ŝŐŚ Ϯϳ͘/ĨĐĞŵĞŶƚƚĂŐŝƐƐŚĂůůŽǁĞƌƚŚĂŶϰ͕ϰϮϬ͛DŝůůŽƵƚĐĞŵĞŶƚƚŽϰ͕ϰϮϬ͛ƵƐŝŶŐůĞĂƐĞǁĂƚĞƌ͘ Ϯϴ͘/ĨƚĂŐŝƐĚĞĞƉĞƌƚŚĂŶϰ͕ϰϮϬ͕Z/,ĂŶĚŽďƚĂŝŶĚƌǇƚĂŐŽĨdŽǁŝƚŚĂŶŽǌǌůĞĂŶĚďůŽǁŽƵƚϯϵďďůƐŽĨǁĂƚĞƌ͘ To confirm plug integrity. Provide 24 hrs notice for AOGCC witness. bjm Review CBL results with AOGCC before perforating. - bjm tĞůů͗<hϭϭͲϬϳ ĂƚĞ͗ϯͬϮϱͬϮϮ Wd͗ϮϬϱͲϭϲϱ Ϯϵ͘dƌĂƉEϮƉƌĞƐƐƵƌĞŽŶƚƵďŝŶŐƉĞƌKƌĞĐŽŵŵĞŶĚĂƚŝŽŶĨŽƌƉĞƌĨŽƌĂƚŝŶŐ ϯϬ͘ZDKd Ͳ>ŝŶĞWĞƌĨƉƌŽĐĞĚƵƌĞ ϯϭ͘D/ZhͲůŝŶĞĂŶĚƉƌĞƐƐƵƌĞĐŽŶƚƌŽůĞƋƵŝƉŵĞŶƚ ϯϮ͘WdůƵďƌŝĐĂƚŽƌƚŽϮϱϬƉƐŝůŽǁͬϯ͕ϬϬϬƉƐŝ,ŝŐŚ ϯϯ͘Z/,ĂŶĚƉĞƌĨŽƌĂƚĞ^ƚĞƌůŝŶŐƐĂŶĚƐĨƌŽŵцϰ͕ϰϬϬ͛ʹцϰ͕ϰϬϳ͛DƉĞƌZͬ'ĞŽ ^ĂŶĚWĞƌĨŽƌĂƚŝŽŶ dŽƉ;DͿ WĞƌĨŽƌĂƚŝŽŶ ŽƚƚŽŵ;DͿ dŽƚĂů&ŽŽƚĂŐĞ ;DͿ ^ƚĞƌůŝŶŐWϱϱцϰ͕ϰϬϬ͛цϰϰϬϳ͛цϳΖ Ă͘WƌŽƉŽƐĞĚƉĞƌĨƐ͘ĂůƐŽƐŚŽǁŶŽŶƚŚĞƉƌŽƉŽƐĞĚƐĐŚĞŵĂƚŝĐŝŶƌĞĚĨŽŶƚ͘ ď͘&ŝŶĂůWĞƌĨƐƚŝĞͲŝŶƐŚĞĞƚǁŝůůďĞƉƌŽǀŝĚĞĚŝŶƚŚĞĨŝĞůĚĨŽƌĞǆĂĐƚƉĞƌĨŝŶƚĞƌǀĂůƐ͘ Đ͘ŽƌƌĞůĂƚĞƵƐŝŶŐKƉĞŶ,ŽůĞŽƌƌĞůĂƚŝŽŶ>ŽŐƉƌŽǀŝĚĞĚďǇ'ĞŽůŽŐŝƐƚ͘^ĞŶĚƚŚĞĐŽƌƌĞůĂƚŝŽŶƉĂƐƐ ƚŽƚŚĞKƉĞƌĂƚŝŽŶƐŶŐŝŶĞĞƌ͕ZĞƐĞƌǀŽŝƌŶŐŝŶĞĞƌ͕ĂŶĚ'ĞŽůŽŐŝƐƚĨŽƌĐŽŶĨŝƌŵĂƚŝŽŶ͘ Ě͘ hƐĞ'ĂŵŵĂͬ>ƚŽĐŽƌƌĞůĂƚĞ͘ Ğ͘/ŶƐƚĂůůƌǇƐƚĂůŐĂƵŐĞƐ;ŽƌǀĞƌŝĨǇWdƐĂƌĞŽƉĞŶƚŽ^ͿďĞĨŽƌĞƉĞƌĨŽƌĂƚŝŶŐ͘ZĞĐŽƌĚƚƵďŝŶŐ ƉƌĞƐƐƵƌĞƐďĞĨŽƌĞĂŶĚĂĨƚĞƌĞĂĐŚƉĞƌĨŽƌĂƚŝŶŐƌƵŶĂƚϱŵŝŶ͕͘ϭϬŵŝŶ͘ĂŶĚϭϱŵŝŶŝŶƚĞƌǀĂůƐ ƉŽƐƚƐŚŽƚ͘ Ĩ͘dŚŝƐƐĂŶĚŝƐŝŶƚŚĞ<ĞŶĂŝ^ƚĞƌůŝŶŐ'ĂƐWŽŽůϱ͘ WŽƐƚͲWĞƌĨD/dͲ/ ϯϰ͘WĞƌĨŽƌŵD/dͲ/ƚŽϮϬϬϬƉƐŝŽŶĐĞũŽďŝƐĐŽŵƉůĞƚĞĂŶĚǁĞůůŚĂƐďĞĞŶďƌŽƵŐŚƚŽŶůŝŶĞǁŝƚŚŝŶϯϬĚĂǇƐ͘ ƚƚĂĐŚŵĞŶƚƐ͗ ϭ͘ƵƌƌĞŶƚƐĐŚĞŵĂƚŝĐ Ϯ͘WƌŽƉŽƐĞĚ^ĐŚĞŵĂƚŝĐ ϯ͘dKW^ĐŚĞŵĂƚŝĐ ϰ͘^ƚĂŶĚĂƌĚtĞůůƉƌŽĐĞĚƵƌĞʹEϮKƉĞƌĂƚŝŽŶƐ Sterling Gas Pool 5.1 (see CO 510B) SFD 4/7/2022 Provide 24 hrs notice for AOGCC witness of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d/ >ͲϮ >Ͳϯ hƚŽhϳ TOC outside 9-5/8" csg calculated at 2944' assuming 25% washout. -bjm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a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d/ >ͲϮ >Ͳϯ hƚŽhϳ TOC outside 9-5/8" csg calculated at 2944' assuming 25% washout. -bjm ^dEZt>>WZKhZ E/dZK'EKWZd/KE^ ϭϮͬϬϴͬϮϬϭϱ &/E>ǀϭ WĂŐĞϭŽĨϭ ϭ͘Ϳ D/ZhEŝƚƌŽŐĞŶWƵŵƉŝŶŐhŶŝƚĂŶĚ>ŝƋƵŝĚEŝƚƌŽŐĞŶdƌĂŶƐƉŽƌƚ͘ Ϯ͘Ϳ EŽƚŝĨǇWĂĚKƉĞƌĂƚŽƌŽĨƵƉĐŽŵŝŶŐEŝƚƌŽŐĞŶŽƉĞƌĂƚŝŽŶƐ͘ ϯ͘Ϳ WĞƌĨŽƌŵWƌĞͲ:Žď^ĂĨĞƚǇDĞĞƚŝŶŐ͘ZĞǀŝĞǁEŝƚƌŽŐĞŶǀĞŶĚŽƌƐƚĂŶĚĂƌĚŽƉĞƌĂƚŝŶŐƉƌŽĐĞĚƵƌĞƐĂŶĚ ĂƉƉƌŽƉƌŝĂƚĞ^ĂĨĞƚǇĂƚĂ^ŚĞĞƚƐ;ĨŽƌŵĞƌůǇD^^Ϳ͘ ϰ͘Ϳ ŽĐƵŵĞŶƚ ŚĂǌĂƌĚƐ ĂŶĚ ŵŝƚŝŐĂƚŝŽŶ ŵĞĂƐƵƌĞƐ ĂŶĚ ĐŽŶĨŝƌŵ ĨůŽǁ ƉĂƚŚƐ͘ /ŶĐůƵĚĞ ƌĞǀŝĞǁ ŽŶ ĂƐƉŚǇǆŝĂƚŝŽŶ ĐĂƵƐĞĚ ďǇ ŶŝƚƌŽŐĞŶĚŝƐƉůĂĐŝŶŐŽǆǇŐĞŶ͘DŝƚŝŐĂƚŝŽŶ ŵĞĂƐƵƌĞƐ ŝŶĐůƵĚĞĂƉƉƌŽƉƌŝĂƚĞ ƌŽƵƚŝŶŐŽĨĨůŽǁůŝŶĞƐ͕ĂĚĞƋƵĂƚĞǀĞŶƚŝŶŐĂŶĚĂƚŵŽƐƉŚĞƌŝĐŵŽŶŝƚŽƌŝŶŐ͘ ϱ͘Ϳ ^ƉŽƚWƵŵƉŝŶŐhŶŝƚĂŶĚdƌĂŶƐƉŽƌƚ͘ŽŶĨŝƌŵůŝƋƵŝĚEϮǀŽůƵŵĞƐŝŶƚƌĂŶƐƉŽƌƚ͘ ϲ͘Ϳ ZŝŐƵƉůŝŶĞƐĨƌŽŵƚŚĞEŝƚƌŽŐĞŶWƵŵƉŝŶŐhŶŝƚƚŽƚŚĞǁĞůůĂŶĚƌĞƚƵƌŶƐƚĂŶŬ͘^ĞĐƵƌĞůŝŶĞƐǁŝƚŚǁŚŝƉ ĐŚĞĐŬƐ͘ ϳ͘Ϳ WůĂĐĞ ƐŝŐŶƐ ĂŶĚ ƉůĂĐĂƌĚƐ ǁĂƌŶŝŶŐ ŽĨ ŚŝŐŚ ƉƌĞƐƐƵƌĞ ĂŶĚ ŶŝƚƌŽŐĞŶ ŽƉĞƌĂƚŝŽŶƐ Ăƚ ĂƌĞĂƐ ǁŚĞƌĞ EŝƚƌŽŐĞŶŵĂǇĂĐĐƵŵƵůĂƚĞŽƌďĞƌĞůĞĂƐĞĚ͘ ϴ͘Ϳ WůĂĐĞƉƌĞƐƐƵƌĞŐĂƵŐĞƐĚŽǁŶƐƚƌĞĂŵŽĨůŝƋƵŝĚĂŶĚŶŝƚƌŽŐĞŶƉƵŵƉƐƚŽĂĚĞƋƵĂƚĞůǇŵĞĂƐƵƌĞƚƵďŝŶŐ ĂŶĚĐĂƐŝŶŐƉƌĞƐƐƵƌĞƐ͘ ϵ͘Ϳ WůĂĐĞƉƌĞƐƐƵƌĞŐĂƵŐĞƐƵƉƐƚƌĞĂŵĂŶĚĚŽǁŶƐƚƌĞĂŵŽĨĂŶǇĐŚĞĐŬǀĂůǀĞƐ͘ ϭϬ͘Ϳ tĞůůƐŝƚĞDĂŶĂŐĞƌƐŚĂůůǁĂůŬĚŽǁŶǀĂůǀĞĂůŝŐŶŵĞŶƚƐĂŶĚĞŶƐƵƌĞǀĂůǀĞƉŽƐŝƚŝŽŶŝƐĐŽƌƌĞĐƚ͘ ϭϭ͘Ϳ ŶƐƵƌĞƉŽƌƚĂďůĞϰͲŐĂƐĚĞƚĞĐƚŝŽŶĞƋƵŝƉŵĞŶƚŝƐŽŶƐŝƚĞ͕ĐĂůŝďƌĂƚĞĚ͕ĂŶĚďƵŵƉƚĞƐƚĞĚƉƌŽƉĞƌůǇƚŽ ĚĞƚĞĐƚ>>ͬ,Ϯ^ͬKϮͬKϮůĞǀĞůƐ͘ŶƐƵƌĞEŝƚƌŽŐĞŶǀĞŶĚŽƌŚĂƐĂǁŽƌŬŝŶŐĂŶĚĐĂůŝďƌĂƚĞĚĚĞƚĞĐƚŽƌĂƐ ǁĞůůƚŚĂƚŵĞĂƐƵƌĞƐKϮůĞǀĞůƐ͘ ϭϮ͘Ϳ WƌĞƐƐƵƌĞƚĞƐƚůŝŶĞƐƵƉƐƚƌĞĂŵŽĨǁĞůůƚŽĂƉƉƌŽǀĞĚƐƵŶĚƌǇƉƌĞƐƐƵƌĞŽƌDW^W;DĂǆŝŵƵŵWŽƚĞŶƚŝĂů ^ƵƌĨĂĐĞWƌĞƐƐƵƌĞͿ͕ǁŚŝĐŚĞǀĞƌŝƐŚŝŐŚĞƌ͘dĞƐƚůŝŶĞƐĚŽǁŶƐƚƌĞĂŵŽĨǁĞůů;ĨƌŽŵǁĞůůƚŽƌĞƚƵƌŶƐƚĂŶŬͿ ƚŽϭ͕ϱϬϬƉƐŝ͘WĞƌĨŽƌŵǀŝƐƵĂůŝŶƐƉĞĐƚŝŽŶĨŽƌĂŶǇůĞĂŬƐ͘ ϭϯ͘Ϳ ůĞĞĚŽĨĨƚĞƐƚƉƌĞƐƐƵƌĞĂŶĚƉƌĞƉĂƌĞĨŽƌƉƵŵƉŝŶŐŶŝƚƌŽŐĞŶ͘ ϭϰ͘Ϳ WƵŵƉŶŝƚƌŽŐĞŶĂƚĚĞƐŝƌĞĚƌĂƚĞ͕ŵŽŶŝƚŽƌŝŶŐƌĂƚĞ;^&DͿĂŶĚƉƌĞƐƐƵƌĞ;W^/Ϳ͘ůůŶŝƚƌŽŐĞŶƌĞƚƵƌŶƐ ĂƌĞƚŽďĞƌŽƵƚĞĚƚŽƚŚĞƌĞƚƵƌŶƐƚĂŶŬ͘ ϭϱ͘Ϳ tŚĞŶĨŝŶĂůŶŝƚƌŽŐĞŶǀŽůƵŵĞŚĂƐďĞĞŶĂĐŚŝĞǀĞĚ͕ŝƐŽůĂƚĞǁĞůůĨƌŽŵEŝƚƌŽŐĞŶWƵŵƉŝŶŐhŶŝƚĂŶĚ ďůĞĞĚĚŽǁŶůŝŶĞƐďĞƚǁĞĞŶǁĞůůĂŶĚEŝƚƌŽŐĞŶWƵŵƉŝŶŐhŶŝƚ͘ ϭϲ͘Ϳ KŶĐĞǇŽƵŚĂǀĞĐŽŶĨŝƌŵĞĚůŝŶĞƐĂƌĞďůĞĚĚŽǁŶ͕ŶŽƚƌĂƉƉĞĚƉƌĞƐƐƵƌĞĞǆŝƐƚƐ͕ĂŶĚŶŽŶŝƚƌŽŐĞŶŚĂƐ ĂĐĐƵŵƵůĂƚĞĚďĞŐŝŶƌŝŐĚŽǁŶŽĨůŝŶĞƐĨƌŽŵƚŚĞEŝƚƌŽŐĞŶWƵŵƉŝŶŐhŶŝƚ͘ ϭϳ͘Ϳ &ŝŶĂůŝǌĞũŽďůŽŐĂŶĚĚŝƐĐƵƐƐŽƉĞƌĂƚŝŽŶƐǁŝƚŚtĞůůƐŝƚĞDĂŶĂŐĞƌ͘ŽĐƵŵĞŶƚĂŶǇůĞƐƐŽŶƐůĞĂƌŶĞĚ ĂŶĚĐŽŶĨŝƌŵĨŝŶĂůƌĂƚĞƐͬƉƌĞƐƐƵƌĞͬǀŽůƵŵĞƐŽĨƚŚĞũŽďĂŶĚƌĞŵĂŝŶŝŶŐŶŝƚƌŽŐĞŶŝŶƚŚĞƚƌĂŶƐƉŽƌƚ͘ ϭϴ͘Ϳ ZDKEŝƚƌŽŐĞŶWƵŵƉŝŶŐhŶŝƚĂŶĚ>ŝƋƵŝĚEŝƚƌŽŐĞŶdƌĂŶƐƉŽƌƚ͘ From:McLellan, Bryan J (OGC) To:Chad Helgeson Cc:Donna Ambruz Subject:RE: [EXTERNAL] RE: KU 11-07X (PTD# 217-041) Sundry # 322-177 Date:Friday, April 8, 2022 10:42:00 AM Chad, Can you make sure the diagram is updated on the 10-40 to accurately show the calculated cement top outside the 9-5/8” casing. The current diagram shows cement to surface. Thanks Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, AK 99501 Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Chad Helgeson <chelgeson@hilcorp.com> Sent: Thursday, April 7, 2022 3:11 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Cc: Donna Ambruz <dambruz@hilcorp.com> Subject: RE: [EXTERNAL] RE: KU 11-07X (PTD# 217-041) Sundry # 322-177 Bryan, I assume you are asking about the cement for the KBU 11-07 on the 9-5/8” We have a CBL that show the TOC of cement at 4,530’ for the 3-1/2”. The 9-5/8” cement job does not have a CBL run on it, so it is a calculated cement top, based on volumes pumped. The well did have losses in 2 sections during drilling at 2-4 bph that were healed up prior to running casing, these could impact the TOC, but those appeared to be healed up before cement pumping began, as they circulated without losses and were getting full returns. A total of 196 bbls of cement was pumped 111 bbls of 12.5 ppg lead 85 bbls of 13.5 ppg tail = 3,512ft in 12.25”x 9-5/8” annulus. Gauge hole TOC = 2,067’ Example potential TOC w/ 25% losses = 2,944’ (no record of any losses in drilling history during cement job) The top of our proposed perfs is 4,400’ in this sundry, which is 1,456’ below the calculated cement top with 25% losses. Just FYI, if these sands don’t work or become depleted, there is the potential to perf as shallow as 3,654’ in the Sterling Pool 3. We do not expect any perfs shallower than this in the future. These would be 701’ from this cement number. I have attached an updated Proposed schematic with the TOC listed in the 9-5/8” casing section showing a 25% loss of cement (conservative). Chad From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Sent: Wednesday, April 6, 2022 5:15 PM To: Chad Helgeson <chelgeson@hilcorp.com> Subject: RE: [EXTERNAL] RE: KU 11-07X (PTD# 217-041) Sundry # 322-177 Chad, How was your TOC on the 9-5/8” casing determined? Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, AK 99501 Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Chad Helgeson <chelgeson@hilcorp.com> Sent: Wednesday, April 6, 2022 4:17 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: RE: [EXTERNAL] RE: KU 11-07X (PTD# 217-041) Sundry # 322-177 No worries, our tech wanted to be sure. She was worried about it. Thanks for letting us know we hadn’t submitted KBU 11-07. I thought that went out last Tuesday. Let me know if you want to discuss it at all. I am working on a couple more of these cement packer jobs for KGF and CLU you will have in the next couple days as well, so if you see something you don’t like with this one, let me know and I will try to update it in these others. Chad From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Sent: Wednesday, April 6, 2022 3:47 PM CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. To: Chad Helgeson <chelgeson@hilcorp.com> Cc: Donna Ambruz <dambruz@hilcorp.com> Subject: [EXTERNAL] RE: KU 11-07X (PTD# 217-041) Sundry # 322-177 My mistake. Yes it should be a 10-404. Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, AK 99501 Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Chad Helgeson <chelgeson@hilcorp.com> Sent: Wednesday, April 6, 2022 3:38 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Cc: Donna Ambruz <dambruz@hilcorp.com> Subject: KU 11-07X (PTD# 217-041) Sundry # 322-177 Bryan, Thanks for getting the sundry reviewed completed for KU -11-07X. I just wanted to confirm that we need to submit a 10-407 for this work when we are complete? Normally this would be a 10-404. Should we change to a 10-404? Thanks Chad Helgeson KEN Operations Engineer Hilcorp Alaska LLC chelgeson@hilcorp.com 907-777-8405 (O) 907-229-4824 (C) The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. 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Supervisor FROM: Bob Noble Petroleum Inspector Well Name KENAI BELUGA UNIT 11-7 Insp Num: mitRCN220120175002 Rel Insp Num: NON -CONFIDENTIAL State of Alaska Alaska Oil and Gas Conservation Commission DATE: Friday, January 21, 2022 SUBJECT: Mechanical Integrity Tests Hilcorp Alaska, LLC 11-7 KENAI BELUGA UNIT 11-7 Sre: Inspector Reviewed By: P.I. Supry —Rc— Comm API Well Number 50-133-20556-00-00 Inspector Name: Bob Noble Permit Number: 205-165-0 Inspection Date: 1/20/2022 - Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min Well 11-7 Type Inj!Tubing N 'TVD li as3o - i Tubing 215 _ 215 - 21s - 215 ' 215 - PTD 2051650 ' i Type Test, SPT -'Test psi 2800 IA 0 3296 _ 3090 3018' 2967 ' — -- BBL Pumped: a - 'BBL Returned: I OA us - 115 115 -T 115- n5 - Interval, OTHER PAF P Notes' MIT required, perfs were shot at 4530. / SLIt ,9 Z-� _&-A) Friday, January 21, 2022 Page I of 1 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: 1/12/2022 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL KBU 11-07 (PTD 205-165) GPT-PERF 12/06/2021 Please include current contact information if different from above. 37' (6HW Received By: 01/12/2022 By Abby Bell at 10:51 am, Jan 12, 2022 1.Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: ___________________ 2.Operator Name:4.Current Well Class:5.Permit to Drill Number: Exploratory Development 3.Address:Stratigraphic Service 6.API Number: 7.If perforating:8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9.Property Designation (Lease Number):10.Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 7,900'N/A Casing Collapse Structural Conductor Surface 1,950psi Intermediate 3,090psi Production 10,540psi Liner Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13.Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14.Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16.Verbal Approval:Date:GAS WAG GSTOR SPLUG AOGCC Representative: GINJ Op Shutdown Abandoned Contact Name: Chad Helgeson Contact Email: Contact Phone: Authorized Title: Conditions of approval: Notify AOGCC so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by:COMMISSIONER THE AOGCC Date: Comm.Comm.Sr Pet Eng Sr Pet Geo Sr Res Eng 7,619'7,832'7,551'~2,732 psi N/A 17.I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name and Digital Signature with Date: AOGCC USE ONLY Dan Marlowe, Operations Manager chelgeson@hilcorp.com (907) 777-8405 Tubing Grade:Tubing MD (ft):Perforation Depth TVD (ft): Tubing Size: N/A & N/A N/A & N/A 6,022 - 7,783 5,741 - 7,502 12/9/2021 3-1/2" PRESENT WELL CONDITION SUMMARY STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEDA028142 205-165 50-133-20556-00-00 Kenai Beluga Unit 11-07 Kenai Gas Field / Beluga/Upper Tyonek Gas Pool CO 510B 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Hilcorp Alaska, LLC Length Size 9.3 / L-80 TVD Burst 7,870' 10,160psi MD 5,750psi 3,450psi 128' 1,680' 5,299' 128' 1,717' 7,604'3-1/2" 9-5/8" 20" 13-3/8" 128' 5,579' 1,717' 7,870' Perforation Depth MD (ft): 5,579' 7,870' ry Statu Form 10-403 Revised 10/2021 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 3:30 pm, Nov 24, 2021 321-605 Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267), ou=Users Date: 2021.11.24 14:00:27 -09'00' Dan Marlowe (1267) X X DLB 11/29/2021 DSR-11/24/21 Perform an MITIA to 2800 psi within 10 days of return to production after perforating above the 9-5/8" casing shoe. Provide 24 hrs notice for AOGCC witness. 10-404 BJM 11/30/21 dts 11/30/2021 11/30/21 Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2021.11.30 11:22:29 -09'00' RBDMS HEW 12/1/2021 Well Prognosis Well: KBU 11-07 Date: 11/24/2021 Well Name:KU 11-07x API Number:50-133-20556-00-00 Current Status:Gas Producer Leg:N/A Estimated Start Date:12/9/2021 Reg. Approval Req’d?403 Regulatory Contact:Donna Ambruz 777-8305 Permit to Drill Number:205-165 First Call Engineer:Chad Helgeson (907) 777-8405 (O) (907) 229-4824 (C) Second Call Engineer:Ryan Rupert (907) 777-8503 (O) (907) 301-1736 (C) Current Bottom Hole Pressure:550 psi (Current flowing with 35 psi tubing pressure) Max. Expected BHP:~ 3459 psi @ 7,275’ TVD (Based on RFT data in well 11/2005) Max. Potential Surface Pressure ~ 2,732 psi (Based on 0.1 psi/ft gas gradient) Well Summary KBU 11-07 was drilled in the Kenai Gas Field in November 2005. It was completed with a 3.5” EXCAPE completion string to 7,865’. The well was Frac’d in 11 different sand with a total of 287,986 lbs of 20/40 Ottawa &Flex Sand in May of 2006. A Capillary string was installed in 2008 and pulled in 2014. It is a steady Beluga/Upper Tyonek Gas Pool producer that flows at 400mcfd and 10 bwpd. The goal of this project is to perforate sands in the Beluga/Upper Tyonek Pool, not originally perforated and frac’d during the initial completion, and Beluga sands above the EXCAPE completion. Notes Regarding Wellbore Condition x 4-3/4” OTIS Tree Connection x Cement Bond Log Cement top @ 4,530’ x Current Well Conditions: Flowing at 385 mcf and 10 bwpd @ 31 psi (IA-220 psi, OA – 120 psi) x Max Inclination = 25 degrees at 2,449’ MD x Drifts o 10/30/21: SL 2.84” GR to 5,700’ and 2.74” 15’ dummy guns & 2.82 swedge to 5,700’, no problems. E-Line Perf 1. MIRU E-line and pressure control equipment 2. PT lubricator to 250psi low / 3,500 psi High. 3. Rig up perf guns (Likely 2-1/2” strip guns 4 spf) 4. RIH and perforate the sands listed in the table below, per Geo/RE. Well Prognosis Well: KBU 11-07 Date: 11/24/2021 Pool Sand Perforation Top (MD) Perforation Bottom (MD) Perforation Top (TVD) Perforation Bottom (TVD) Total Footage (MD)Beluga/Upper Tyonek Gas PoolUB ±4,958' ±4,976' ±4,682’ ±4,697’ 18' UB 1 Upper ±4,999’ ±5,007' ±4,722’ ±4730' 8’ UB 5 ±5,268' ±5,282' ±4,989' ±5,003' 14' UB 5A Upper ±5,291' ±5,299' ±5,011' ±5,019' 8' UB 5A Lower ±5,306' ±5,311' ±5,026' ±5,031' 5' UB 7 ±5,398' ±5,413' ±5,118' ±5,133' 15' LB3C ±7,031' ±7,041' ±6,750' ±6,760' 10' TY-73_1 ±7,551' ±7,559' ±7,270' ±7,278' 8’ Well will be shot shut in. Consult with OE for what WHP’s to use (may use field gas to pressure up to desired pressure, limit is 700 psi). Make correlation pass and send log in to Operations Engineer, Reservoir Engineer and the Geologist. a.Use Gamma/CCL to correlate. b. Record initial and 5/10/15 minute tubing pressures after firing c. Consult with RE/Geo between each perf interval: i. Chris Kanyer (RE): 250-0374 ii. Daniel Yancy (Geo): 250-9632 d. Above perfs will be shot in the Beluga/Upper Tyonek Pool. There is no comingling with any other Kenai Pools per CO 510B with currently open Tyonek Pool #1 is covered by CO 510B 5. RD E-Line Unit and turn well over to production. Contingency EL Plug or Patch 1. MIRU E-line, PT lubricator to 250 psi low / 3,500 psi high 2. RIH W/ GPT tool and find fluid level 3. Pressure up with field gas to push away water into formation. a. Use GPT tool to confirm water level is below interval to perf 4. Once fluid level is below interval to isolate, MU 3-1/2” patch or plug 5. RIH and set plug or patch per OE. a. Only a plug between the two pools would require cement. b. Cement may be used for plug depending on type of plug selected. 6. RD E-Line Unit and turn well over to production. Attachments: 1. Current schematic 2. Proposed Schematic MITIA to 2800 psi within 10 days of returning well to production after perforating. bjm Lease: State: Country:USA (TVD): 8/7/2015 Completion Fluid:6% KCL Kenai Gas Field Alaska 1º Perforations (MD): Kenai Peninsula Borough 6,022' - 7,783' County or Parish: Kenai Beluga Unit 11-7 5,741' - 7,502' Well Name & Number: Dated Completed: Donna Ambruz Angle @ KOP and Depth: Last Revison Date: Angle/Perfs:2º / 100 ft @ 500' MD Revised by: 1/6/2006 KBU 11-7 Pad 14-6 490' FSL, 1,066' FWL, Sec. 6, T4N, R11W, S.M.Permit #: 205-165 API #: 50-133-20556-00 Prop. Des: A-028142 KB Elevation: 87' (21' AGL) WBS #: DD.05.12830.CAP.CMP.01 Latitude: 60°27' 38.876" NLongitude: 151°15' 47.584" W X: 271,988.97Y: 2,362,537.28Spud: 11/10/2005 TD: 11/29/2005Rig Released: 12/06/05 @ 1800 hrs. PA #: Tree crossing = 4-3/4" Otis Top of Cement (est.) 500' above 9-5/8" shoe @ 5,079' MD PBTD 7,832' MD 7,551' TVD TD 7,900' MD 7,619 ' TVD Excape System Details - 18 Excape modules placed -Green control line fired module 1 -Yellow control line fired modules 2 thru 10 -Red contol line fired modules 11 thru 18 - Ceramic flapper valves below each module except for module 1 Perfs MD (RKB): Module 18 - 6,022' - 6,032' (Beluga) Module 17 - 6,211' - 6,221' (Beluga) Module 16 - 6,292' - 6,302' (Beluga) Module 15 - 6,421' - 6,431' (Beluga) Module 14 - 6,509' - 6,519' (Beluga) Module 13 - 6,661' - 6,671' (Beluga) Module 12 - 6,769' - 6,779' (Beluga) Module 11 - 6,819' - 6,829' (Beluga) LB-2E - 6,866' - 6,886' (Beluga) Module 10 - 6,909' - 6,919' (Beluga) LB-3A - 6,957' - 6,967' (Beluga) Module 9 - 7,001' - 7,011' (Beluga) Module 8 - 7,118' - 7,128' (Beluga) Module 7 - 7,190' - 7,200' (Beluga) Module 6 - 7,301' - 7,311' (Beluga) Module 5 - 7,353' - 7,363' (Beluga) Module 4 - 7,437' - 7,447' (Tyonek) Module 3 - 7579' - ,7589' (Tyonek) Module 2 - 7,649' - 7,659' (Tyonek) Excape System Details-Ceramic flapper valves below each module as follows: -17 Conventional flappers -No flapper below Module-1 Flappers MD (RKB): Module 18 - 6,041' Module 17 - 6,230' Module 16 - 6,311' Module 15 - 6,440' Module 14 - 6,528' Module 13 - 6,680' Module 12 - 6,788' Module 11 - 6,838' Module 10 - 6,928' Module 9 - 7,020 Module 8 - 7,137 Module 7 - 7,209' Module 6 - 7,320' Module 5 - 7,372' Module 4 - 7,473' Module 3 - 7,598' Module 2 - 7,668' Module 1 - NA Conductor: 20" X-52 131 ppf Top Bottom MD 0' 128' TVD 0' 128' Surface Casing: 13-3/8" K-55 68 ppf BTC Top Bottom MD 0' 1,717' TVD 0' 1,680' 16" hole Cmt w/ 543 sks (238 bbls) of 12.0 ppg, Type 1 cmt, 100% returns 11 sks (5bbls) to surface. Intermediate Casing: 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 5,579' TVD 0' 5,299' 12-1/4" hole Cmt w/ 297 sks (111 bbls) of 12.5 ppg Class G Lead & 248 sks (85 bbls) of 13.5 ppg Class G Tail Production Casing: 3-1/2" L-80 9.3 ppf EUE Top Bottom 8rd MD 0' 7,870' TVD 0' 7,604' 8-1/2" hole Cmt w/ 1,067 sks (220 bbls) of 15.8 ppg Class G, 100% returns Tagged @ 7,832' MD w/ CT on 3/27/2014 SCHEMATIC LB-2E LB-3A Lease: State: Country:USA (TVD): Dated Completed: CH Angle @ KOP and Depth: Last Revison Date: Angle/Perfs:2º / 100 ft @ 500' MD Revised by: 1/6/2006 Perforations (MD): Kenai Peninsula Borough 5,150' - 7,783' County or Parish: Kenai Beluga Unit 11-7 4,872' - 7,502' Well Name & Number: 11/11/2021 Completion Fluid:6% KCL Kenai Gas Field Alaska 1º KBU 11-7 Pad 14-6 490' FSL, 1,066' FWL, Sec. 6, T4N, R11W, S.M.Permit #: 205-165 API #: 50-133-20556-00 Prop. Des: A-028142 KB Elevation: 87' (21' AGL) WBS #: DD.05.12830.CAP.CMP.01 Latitude: 60° 27' 38.876" NLongitude: 151° 15' 47.584" W X: 271,988.97Y: 2,362,537.28Spud: 11/10/2005 TD: 11/29/2005Rig Released: 12/06/05 @ 1800 hrs. PA #: Tree crossing = 4-3/4" Otis Top of Cement (CBL) 4,530' MD PBTD 7,832' MD 7,551' TVD TD 7,900' MD 7,619 ' TVD Excape System Details - 18 Excape modules placed -Green control line fired module 1 -Yellow control line fired modules 2 thru 10 -Red contol line fired modules 11 thru 18 - Ceramic flapper valves below each module except for module 1 Perfs MD (RKB): UB -4,958-4,976' (Beluga) UB 1 4,999'-5,007' UB 4 5,181-5,197' UB 4 5,214-5,221' UB 5 5,268-5,282' UB 5 5,291-5,299' UB 5 5,306-5,311' UB 7 5,398-5,413' Module 18 - 6,022' - 6,032' (Beluga) Module 17 - 6,211' - 6,221' (Beluga) Module 16 - 6,292' - 6,302' (Beluga) Module 15 - 6,421' - 6,431' (Beluga) Module 14 - 6,509' - 6,519' (Beluga) Module 13 - 6,661' - 6,671' (Beluga) Module 12 - 6,769' - 6,779' (Beluga) Module 11 - 6,819' - 6,829' (Beluga) LB-2E - 6,866' - 6,886' (Beluga) Module 10 - 6,909' - 6,919' (Beluga) LB-3A - 6,957' - 6,967' (Beluga) Module 9 - 7,001' - 7,011' (Beluga) LB 3C 7,031-7,041' Beluga Module 8 - 7,118' - 7,128' (Beluga) Module 7 - 7,190' - 7,200' (Beluga) Module 6 - 7,301' - 7,311' (Beluga) Module 5 - 7,353' - 7,363' (Beluga) Module 4 - 7,437' - 7,447' (Tyonek) TY 73-1 7,551-7,559' (Tyonek) Module 3 - 7579' - 7,589' (Tyonek) Excape System Details- Ceramic flapper valves beloweach module as follows:- 17 Conventional flappers- No flapper below Module-1 Flappers MD (RKB):Module 18 - 6,041'Module 17 - 6,230'Module 16 - 6,311'Module 15 - 6,440'Module 14 - 6,528'Module 13 - 6,680'Module 12 - 6,788'Module 11 - 6,838'Module 10 - 6,928'Module 9 - 7,020Module 8 - 7,137Module 7 - 7,209'Module 6 - 7,320'Module 5 - 7,372'Module 4 - 7,473'Module 3 - 7,598' Module 2 - 7,668'Module 1 - NA Conductor: 20" X-52 131 ppf Top Bottom MD 0' 128' TVD 0' 128' Surface Casing: 13-3/8" K-55 68 ppf BTC Top Bottom MD 0' 1,717' TVD 0' 1,680' 16" hole Cmt w/ 543 sks (238 bbls) of 12.0 ppg, Type 1 cmt, 100% returns Intermediate Casing: 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 5,579' TVD 0' 5,299' 12-1/4" hole Cmt w/ 297 sks (111 bbls) of 12.5 ppg Class G Lead & 248 sks (85 bbls) of 13.5 ppg Class G Tail Production Casing: 3-1/2" L-80 9.3 ppf EUE Top Bottom 8rd MD 0' 7,870' TVD 0' 7,604' 8-1/2" hole Cmt w/ 1,067 sks (220 bbls) of 15.8 ppg Class G, 100% returns Tagged @ 7,832' MD w/ CT on 3/27/2014 PROPOSED SCHEMATIC LB-2E LB-3A UB to UB 7 Davies, Stephen F (DOA) From: Taylor Nasse <tnasse@hilcorp.com> Sent: Tuesday, July 12, 2016 8:42 AM To: Davies, Stephen F (DOA) Cc: Donna Ambruz; Jason Ewing; Chad Helgeson Subject: RE: KBU 11-07 (PTD 205-165; Sundry Applicaton 316-320) - Perforation Intervals HiSteve- I just wanted to send you a quick update to close the loop on this sundry. We received the data from the PNL after going through a couple iterations of post -processing; however, the quality of the data was still questionable due to logging through two strings of pipe in gas. So we will be withdrawing this sundry and shelving this work for now. If you have any questions, please feel free to contact me. Thanks, Taylor W. Nasse, PE Operations Engineer Kenai Asset Team Hilcorp Alaska, LLC (907) 777-8354 office (907) 903-0341 cell From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Tuesday, June 14, 2016 9:04 AM To: Taylor Nasse Subject: RE: KBU 11-07 (PTD 205-165; Sundry Applicaton 316-320) - Perforation Intervals Thank you. Steve Davies AOGCC 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 Steve Davies at 907-793-1224 or steve.davies@alaska.gov. Sent from my desktop PC From: Taylor Nasse fmailto:tnasse@hilcorp.com] Sent: Monday, June 13, 2016 10:31 PM To: Davies, Stephen F (DOA) Cc: Jason Ewing; Chad Helgeson Subject: RE: KBU 11-07 (PTD 205-165; Sundry Applicaton 316-320) - Perforation Intervals Hi Steve - The selected perf intervals will be discrete. Our plan was to run a PNL prior to selecting the intervals, which was included in the procedure under "Notes Regarding Wellbore Condition". We ran this log late last week so as soon as we receive and review it we should be able to select the desired perf depths and send them along. I hope this information helps. Let me know if you have any additional questions. Thanks, Taylor W. Nasse, PE Operations Engineer Kenai Asset Team Hilcorp Alaska, LLC (907) 777-8354 office (907) 903-0341 cell From: Davies, Stephen F (DOA)[mailto:steve.davies(a)alaska.gov] Sent: Monday, lune 13, 2016 7:15 PM To: Taylor Nasse Subject: RE: KBU 11-07 (PTD 205-165; Sundry Applicaton 316-320) - Perforation Intervals Hi Taylor, I don't recall receiving a reply to my email of June 8th, below. I have a sundry application for KBU 11-07 that cannot be continue along in the AOGCC's review process until an answer is received. Thanks, Steve Davies AOGCC 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 Steve Davies at 907-793-1224 or steve.davies@alaska.zov. Sent from my desktop PC From: Davies, Stephen F (DOA) Sent: Wednesday, June 08, 2016 3:12 PM To: Taylor Nasse (tnasse(alhilcoro.com) Subject: KBU 11-07 (PTD 205-165; Sundry Applicaton 316-320) - Perforation Intervals Taylor, In KBU 11-07, all previous perforation intervals have totaled 10' to 20' thickness. In Sundry Application 316-320, Hilcorp requests approval for a 300' interval. Does Hilcorp plan to perforate the entire 300' interval, or will perforations be limited to discrete sands? If only discrete sands, please provide the interval footage for each sand. Regards, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 AOGCC: 907.279-1433 Fax: 907-276-7542 333 West 7`' Avenue, Suite 100 Anchorage, AK 99501 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 Steve Davies at 907-793-1224 or steve.davies(&alaska.aov. Sent from my desktop PC Davies, Stephen F (DOA) From: Taylor Nasse <tnasse@hilcorp.com> Sent: Monday,June 13, 2016 10:31 PM To: Davies, Stephen F (DOA) Cc: Jason Ewing; Chad Helgeson Subject: RE: KBU 11-07 (PTD 205-165; Sundry Applicaton 316-320) - Perforation Intervals Hi Steve- The selected perf intervals will be discrete. Our plan was to run a PNL prior to selecting the intervals, which was included in the procedure under"Notes Regarding Wellbore Condition". We ran this log late last week so as soon as we receive and review it we should be able to select the desired perf depths and send them along. I hope this information helps. Let me know if you have any additional questions. Thanks, Taylor W. Nasse, PE Operations Engineer Kenai Asset Team scANNED FEB 0 8 2017 Hilcorp Alaska, LLC (907) 777-8354 office (907)903-0341 cell From: Davies, Stephen F (DOA) [mailto:steve.davies@aalaska.gov] Sent: Monday, June 13, 2016 7:15 PM To: Taylor Nasse Subject: RE: KBU 11-07 (PTD 205-165; Sundry Applicaton 316-320) - Perforation Intervals Hi Taylor, I don't recall receiving a reply to my email of June 8th, below. I have a sundry application for KBU 11-07 that cannot be continue along in the AOGCC's review process until an answer is received. Thanks, Steve Davies AOGCC 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 Steve Davies at 907-793-1224 or steve.davies@alaska.gov. Sent from my desktop PC From: Davies, Stephen F (DOA) Sent: Wednesday, June 08, 2016 3:12 PM 1 STATE OF ALASKA JUN 0 7 2016 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1.Type of Request: Abandon 0 Plug Perforations ❑ Fracture Stimulate 0 Repair Wep 0 Operations shutdown 0 Suspend ❑ Perforate ❑✓ • Other Stimulate ❑ Pull Tubing ❑ Charge . proved Program❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing • • - . ❑ 2.Operator Name: 4.Current Well Class: 5 ► Number. Hilcorp Alaska,LLC Exploratory ❑ Development Q ,, 205-165 3.Address: . , ' ber. 3800 Centerpoint Drive,Suite 1400 Stratigraphic ❑ Service Anchorage,Alaska 99503 i, / 50-133-20556-00-00 , 7.If perforating: 8/411 me and Number. What Regulation or Conservation Order governs well spacing in this pool? C.O.510A ' Kenai Beluga Unit(KBU)11-07 - Will planned perforations require a spacing exception? Yes ❑ No Q 9.Property Designation(Lease Number): 10.Field/Pool(s): FEDA028142 • Kenai.,..• :d-Beluga/Upper Tyonek Gas Pool • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth ND(ft): Effective Depth MD: Effective Depth ND: MP\ Qp.i): Plugs(MD): Junk(MD): 7,900' • 7,619' 7,832' 7,551' ,) 2,475 psi N/A N/A Casing Length Size MD '' Burst Collapse Structural Conductor 128' 20" 1 128' Surface 1,717' 13-3/8" 1,� 101, 1,680' 3,450 psi 1,950 psi Intermediate 5,579' 9-5/8" 5,57• 5,299' 5,750 psi 3,090 psi Production 7,870' 3-1/2" . 0' 7,604' 10,160 psi 10,540 psi Liner 1 Perforation Depth MD(ft): Perforation Depth ND(ft): Tub Aa e. Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic (3-1/ 9.3#/L-80 7,870' Packers and SSSV Type: a rs and SSSV MD(ft)and ND(ft): N/A ' N/A 12.Attachments: Proposal Summary ❑ We .. - -matic 0 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sket % Exploratory ❑ Stratigraphic ❑ Development❑✓ r Service ❑ 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: Ju ., 016 OIL ❑ WINJ ❑ WDSPL Li Suspended ❑ 16.Verbal Approval: Date: 40 GAS El , WAG ❑ GSTOR ❑ SPLUG ❑ Commission Representative: GINJ Li Op Shutdown ❑ Abandoned ❑ 17. I hereby certify that the foregoing is true an, the procedure approved herein will not be deviated from without prior ,ritten approval. Contact Taylor Nasse-777-8354 Email 1.0.0.§02.131.1.0. Printed Name Chad Helgeson Title Operations Manager Signature C/1 �� Phone 907-777-8405 Date 6/7//(- COMMISSION USE ONLY Conditions of approval: Notify Co ission so that a representative may witness Sundry Number: “-e - 3 2 a Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance Li Other: NED 1=r3 0 22017 Post Initial Injection MIT Req'd? Yes ❑ No ❑ RBDMS LI' JUL 1 B 1016 Spacing Exception Required? Yes ❑ No ❑ Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: i 0 RptGat NtAlLal Submit Form and Form 10-403 Revised 11/2015 id for12 months from the date of approval. Attachments in Duplicate • • Well Prognosis Well: KBU 11-07 Date:6/7/16 Hilcorp Alaska,LL Well Name: KBU 11-07 API Number: 50-133-20556-00 Current Status: Producing Gas Well Leg: N/A Estimated Start Date: June 21st, 2016 Rig: N/A Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 205-165 First Call Engineer: Taylor Nasse (907)777-8354(0) (907)903-0341 (C) Second Call Engineer: Chad Helgeson (907)777-8405 (0) (907) 229-4824(C) AFE Number Est. Bottom Hole Pressure: —3,225 psi at 7,502' ND (Based on 0.43 psi/ft press. gradient) Max. Potential Surface Pressure: —2,475 psi (Based on 0.1 psi/ft gas gradient to surface) Current Surface Pressure: —65 psi (flowing from multiple sands) Brief Well Summary: Kenai Beluga Unit(KBU) 11-07 was drilled as a Grass roots EXCAPE completion in 2005 to target gas sands in the Beluga and Upper Tyonek formations. The EXCAPE modules were frac'd and placed on production in 2006. A capillary string was installed in 2009 to help with water unloading. The capillary string was pulled in January 2014 and a coil tubing fill cleanout was performed in March 2014. Perforations were added in the LB-3A and LB-2E in July 2015 with no significant increase in gas. The purpose of this work/sundry is to perforate the UB-5 interval. Notes Regarding Wellbore Condition • The well currently is flowing=0.5 MMSCFD at 65 psig. • MIRU slickline and make GR and drift run to tag bottom prior to performing work. • A PNL will be run prior to perforating to select desired perforation intervals. E-Line Procedure 1. MIRU e-line and pressure control equipment. PT lubricator to 250 psi low/2,500 psi high. 2. Perforate the Beluga sands with 2-3/8" 5 SPF 60 deg phased perf guns(verify with Reservoir engineer desired pressure on well prior to perforating), bleed well down or pressure up if necessary prior to perforating. All intervals are planned for 10 SPF so each zone may be shot twice. Depths are from the Expro CBL log dated Dec. 22"d, 2005. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation. Gross Proposed Perforated Intervals Sands Top(MD) Btm (MD) FT Upper Beluga UB-5 ±5,150 ±5,450 ±300 3. POOH. 4. Flow through test separator and record water and gas rates. 5. If the UB-5 is not commercial or wet,the zone may be permanently plugged back with a casing patch (perf intervals will be short enough to patch). 6. RD e-line. • • Well Prognosis Well: KBU 11-07 Date:6/7/16 Hilcoru Alaska,LL 7. Turn well over to production. Attachments: 1. Current and Proposed Well Schematics 2. X-Span patch specifications 3. CBL from 4,500'—5,000'(top of cement) • KBU 11 -7 S Pad 14-6 SCHEMATIC . inn;leur,rAlayka,1.1.(: 490' FSL, 1,066' FWL, Permit#: 205-165 Sec. 6, T4N, R11 W, S.M. Conductor: API#: 50-133-20556-00 20" X-52 131 ppf Prop.Des: A-028142 i Top Bottom KB Elevation: 87'(21'AGL) MD 0' 128' WBS#: DD.05.12830.CAP.CMP.01 t ,1 .' I TVD 0' 128' Latitude: 60°27'38.876"N ( r Longitude: 151°15'47.584"W Surface Casing: X: 271,988.97 13-3/8" K-55 68 ppf BTC Y 2,362 537.28 Tom Bottom spud: 11/10/2005 MD 0' 1,717' TD: 11/29/2005 r TVD 0' 1,680' R1 Released: 12/06/05 @ 1800 hrs. 16"hole Cmt w/543 sks(238 bbls)of PA#: 12.0 ppg,Type 1 cmt,100%returns 11 sks (5bbls)to surface. 1 Tree crossing=4-3/4"Otis ( Intermediate Casing: 9-5/8" L-80 40 ppf BTC TcR Bottom Top of Cement(CBL) MD 0' 5,579' 4,530'MD • TVD 0' 5,299' 12-1/4"hole Cmt w/297 sks(111 bbls)of 12.5 ppg Class G Lead& 248 sks(85 bbls) Excape System Details of 13.5 ppg Class G Tail -Ceramic flapper valves below each module as follows: Production Casing: -17 Conventional flappers 3-1/2" L-80 9.3 ppf EUE -No flapper below Module-1 II �' Top Bottom 8rd tr r , MD 0' 7,870' Flappers MD(RKB): i' TVD 0' 7,604' Module 18-6,041' i, I t ! 8-1/2"hole Cmt w/1,067 sks(220 bbls)of A 15.8 ppg Class G,100%returns Module 17-6,230' tw,1' II Module 16-6,311' Module 15-6,440' I rExcape System Details Module 14-6,528' r I }C -18 Excape modules placed Module 13-6,680' -Green control line fired module 1 control line fired modules 2 thru 10 Module 12-6,788' I -''-,:1 contol line fired modules 11 thru 18 Module 11 -6,838' -Ceramic flapper valves below each module Module 10 6,928' I3 LB-2E except for module 1 Module 9- 7,020 '' Di Module 8- 7,137 # ' LB-3A Perfs MD(RKB): Module 7- 7,209' Di ei 1 , Module 18-6,022'-6,032' (Beluga) Module 6 7,320' "` .ir Module 17-6,211'-6,221' (Beluga) Di Module 16-6,292'-6,302' (Beluga) Module 5- 7,372' ( (Beluga) � }#### Module 15-6,421'-6,431' Module 4- 7,473' is Di L Module 14-6,509'-6,519' (Beluga) Module 3- 7,598' . .1 i Module 13-6,661'-6,671' (Beluga) Module 2- 7,668' "',i ? Module 12-6,769'-6,779' (Beluga) Module 1 - NA I Iii t Module 11 -6,819'-6,829' (Beluga) r I LB-2E- 6,866'-6,886' (Beluga;, . IModule 10-6,909'-6,919' (Beluga) i 'r LB-3A- 6,957'-6,967' (Beluga) 10.1 Module 9 -7,001'-7,011' (Beluga) �� Module 8 -7,118'-7,128' (Beluga) Module 7 -7,190'-7,200' (Beluga) 4__ a c Module 6 -7,301'-7,311' (Beluga) .y? Di Module 5 -7,353'-7,363' (Beluga) " ? • Module 4 -7,437'-7,447' (Tyonek) Module 3 -7579' -,7589' (Tyonek) Module 2 -7,649'-7,659' (Tyonek) -,r Tagged @ 7,832'MD w/CT on 3/27/2014 TD PBTD 7,900'MD 7,832'MD 7,619'ND 7,551'ND Well Name&Number: Kenai Beluga Unit 11-7 _ Lease: Kenai Gas Field County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Perforations(MD): 6,022'-7,783' _ (TVD): 5,741'-7,502' Angle @ KOP and Depth: 2°/100 ft @ 500'MD _ Angle/Perfs: 1° Dated Completed: 1/6/2006 Completion Fluid: 6%KCL Revised by: Donna Ambruz Last Revison Date: 8/7/2015 H • KBU 11 -7 • PROPOSED • Pad 14-6 SCHEMATIC Moan)Alaska,LLC 490' FSL, 1,066' FWL, Permit#: 205-165 Sec. 6, T4N, R11 W, S.M. Conductor: API#: 50-133-20556-0020" X-52 131 ppf Prop.Des: A-028142 Top Bottom KB Elevation: 87'(21'AGL) MD o' 128' WBS#: DD.05.12830.CAP.CMP.01 TVD 0' 128' Latitude: 60°27'38.876"N ,.- Longitude: 151°15'47.584"W Surface Casing: X: 271,988.97 13-3/8" K-55 68 ppf BTC 77 2,362 537.28Top Bottom Spud: 11/10/2005 J ' TD: 11/29/2005 TVMD ' 1, 80' Rii Released: 12/06/05 @ 1800 hrs. 16"Dole Cmt wl 543 sks(38 bbls)of PA#: 12.0 ppg,Type 1 cmt,100%returns 11 sks (5bbls)to surface. Tree crossing=4-3/4"Otis I Intermediate Casing: 9-5/8" L-80 40 ppf BTC Top Bottom Top of Cement(CBL) MD 0' 5,579' 4,530'MDTVD 0' 5,299' , "y 12-1/4"hole Cmt w/297 sks(111 bbls)of 12.5 ppg Class G Lead& 248 sks(85 bbls) Excape System Details of 13.5 ppg Class G Tail -Ceramic flapper valves below each module as follows: Production Casing: -17 Conventional flappers (' 3-1/2" L-80 9.3 ppf EUE -No flapper below Module-1 ?, Top Bottom 8rd MD 0' 7,870' Flappers MD(RKB): II MD 0' 7,604' Module 18-6,041' i 8-1/2"hole Cmt w/1,067 sks(220 bbls)of Module 17-6,230' 15.8 ppg Class G,100%returns 1 Module 16-6,311' Module 15 6,440' i Excape System Details Module 14-6,528' -18 Excape modules placed Module 13-6,680' ` kl ' - • control line fired module 1 Module 12-6,788' II t - control line fired modules 2 thru 10 Module 11 -6,838' contol line fired modules 11 thru 18 Ceramic flapper valves below each module Module 10 6,928' I LB-2E except for module 1 Module 9- 7,020 int Module 8- 7,137 T LB-3A Ports MD(RKBI: Module 7- 7,209' 11 UB-5- 5,150'-5,450' (Beluga) Module 6- 7,320' Module 18-6,022'-6,032' (Beluga) Module 5- 7,372' I Module 17-6,211'-6,221' (Beluga) • Module 16-6,292'-6,302' (Beluga) Module 4- 7,473' - lii Module 15-6,421'-6,431' (Beluga) Module 3- 7,598' . Module 14-6,509'-6,519' (Beluga) Module 2- 7,668' l i Module 13-6,661'-6,671' (Beluga) Module 1 - NA 1 t4 Module 12-6,769'-6,779' (Beluga) Module 11 -6,819'-6,829' (Beluga) ( t LB-2E- 6,866'-6,886' (Beluga) Module 10-6,909'-6,919' (Beluga) t LB-3lA-8 6,91578'-6,967'' (BBelluga) Module 9 -7,001'-7,011' (Beluga) e M' : • odule 7 -7,190'-7,200 (Beluga)) i t Module 6 -7,301'-7,311' (Beluga) Module 5 -7,353'-7,363' (Beluga) - , - ' Module 4 -7,437'-7,447' (Tyonek) Module 3 -7579' -,7589' (Tyonek) 101 Module 2 -7,649'-7,659' (Tyonek) UM •, Module 1 -7,773'-7,783' (Tyonek) IEI TD PBTD 1 I 7,900'MD 7,832'MD I Tagged @ 7,832'MD ND w/CT on 3/27/2014 7,619'TVD 7,551' Well Name&Number: Kenai Beluga Unit 11-7 Lease: Kenai Gas Field County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Perforations(MD): 5,150'-7,783' (TVD): 4,872'-7,502' Angle @ KOP and Depth: 2°/100 ft @ 500'MD Angle/Perfs: 1° Dated Completed: 1/6/2006 Completion Fluid: 6%KCL Revised by: Taylor Nasse Last Revison Date: 6/7/2016 • • • U U U U U U U U f c:T ty N N CO N t` y y O) to R CO °, co 2 x .- a x v x v x x °x °x N 0 N r a0 r 00 r r lD r O r OD co =0 U) U) Cl 7 M — M A e- M .- t) — M A M a N M M M M M M if.' t[1 L. to.0N.0 lA to l()to co, N M CV") N M N M O� � - - - OV Otp Otp Otp Otp N N O O 'O 1 N O N 'O 1, O _ d d d CO co~T J -J 5y Ly -a 1,-; �L.,5 J co C O ti O ON OVMMMMM ^ Ar O ', - O O M O O O = O p p r7771��1OO . 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II )} . . . , % t _ • • Davies, Stephen F (DOA) From: Taylor Nasse <tnasse@hilcorp.com> Sent: Tuesday, July 12, 2016 8:42 AM To: Davies, Stephen F (DOA) Cc: Donna Ambruz;Jason Ewing; Chad Helgeson Subject: RE: KBU 11-07 (PTD 205-165; Sundry Applicaton 316-320) - Perforation Intervals Hi Steve- I just wanted to send you a quick update to close the loop on this sundry. We received the data from the PNL after going through a couple iterations of post-processing; however, the quality of the data was still questionable due to logging through two strings of pipe in gas. So we will be withdrawing this sundry and shelving this work for now. If you have any questions, please feel free to contact me. Thanks, Taylor W. Nasse, PE Operations Engineer Kenai Asset Team Hilcorp Alaska, LLC (907) 777-8354 office (907) 903-0341 cell From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Tuesday, June 14, 2016 9:04 AM To: Taylor Nasse Subject: RE: KBU 11-07 (PTD 205-165; Sundry Applicaton 316-320) - Perforation Intervals Thank you. Steve Davies AOGCC 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 Steve Davies at 907-793-1224 or steve.davies(a)alaska.gov. Sent from my desktop PC From: Taylor Nasse [mailto:tnasse©hilcorp.com] Sent: Monday, June 13, 2016 10:31 PM To: Davies, Stephen F (DOA) Cc: Jason Ewing; Chad Helgeson Subject: RE: KBU 11-07 (PTD 205-165; Sundry Applicaton 316-320) - Perforation Intervals 1 I • • Hi Steve- The selected perf intervals will be discrete. Our plan was to run a PNL prior to selecting the intervals, which was included in the procedure under"Notes Regarding Wellbore Condition". We ran this log late last week so as soon as we receive and review it we should be able to select the desired perf depths and send them along. I hope this information helps. Let me know if you have any additional questions. Thanks, Taylor W. Nasse, PE Operations Engineer Kenai Asset Team Hilcorp Alaska, LLC (907) 777-8354 office (907)903-0341 cell From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Monday, June 13, 2016 7:15 PM To: Taylor Nasse Subject: RE: KBU 11-07 (PTD 205-165; Sundry Applicaton 316-320) - Perforation Intervals Hi Taylor, I don't recall receiving a reply to my email of June 8th, below. I have a sundry application for KBU 11-07 that cannot be continue along in the AOGCC's review process until an answer is received. Thanks, Steve Davies AOGCC 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 Steve Davies at 907-793-1224 or steve.daviesPalaska.gov. Sent from my desktop PC From: Davies, Stephen F (DOA) Sent: Wednesday, June 08, 2016 3:12 PM To: Taylor Nasse (tnasseOhilcorp.com) Subject: KBU 11-07 (PTD 205-165; Sundry Applicaton 316-320) - Perforation Intervals Taylor, In KBU 11-07, all previous perforation intervals have totaled 10'to 20' thickness. In Sundry Application 316-320, Hilcorp requests approval for a 300' interval. Does Hilcorp plan to perforate the entire 300' interval, or will perforations be limited to discrete sands? If only discrete sands, please provide the interval footage for each sand. Regards, Steve Davies 2 • 410 Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 AOGCC: 907-279-1433 Fax: 907-276-7542 333 West 7th Avenue,Suite 100 Anchorage,AK 99501 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 Steve Davies at 907-793-1224 or steve.davies@alaska.gov. Sent from my desktop PC 3 STATE OF ALASKA AAA OIL AND GAS CONSERVATION COM ION REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon U Plug Perforations U Fracture Stimulate U Pull Tubing (� U Operations shutdown Performed: Suspend ❑ Perforate ❑✓ Other Stimulate ❑ Alter Casing❑ Change Approved Program ❑ Plug for Redrill ❑ 3rforate New Pool ❑ Repair Well ❑ Re-enter Susp Well❑ Other: ❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development [ Exploratory ❑ . 205-165 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,Alaska 99503 • 50-133-20556-00-00 7.Property Designation(Lease Number): 8.Well Name and Number: FEDA028142 . ' Kenai Beluga Unit 11-7 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A • Kenai Gas Field-Beluga/Upper Tyonek Gas Pool 11.Present Well Condition Summary: Total Depth measured . 7,900 feet Plugs measured N/A RECEIVED true vertical . 7,619 feet Junk measured N/A feet SEP 0 2 2015 Effective Depth measured A7,832 feet Packer measured N/A feet AOG/^+/"a true vertical •7,551 feet true vertical N/A feet ��//��,// Casing Length Size MD TVD Burst Collapse Structural Conductor 128' 20" 128' 128' Surface 1,717' 13-3/8" 1,717' 1,680' 3,450psi 1,950psi Intermediate 5,579' 9-5/8" 5,579' 5,299' 5,750psi 3,090psi Production 7,870' 3-1/2" 7,870' 7,604' 10,160psi 10,540psi Liner Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic C INED i. 1 2016 Tubing(size,grade,measured and true vertical depth) 3-1/2" 9.3#/L-80 7,870' 7,604' Packers and SSSV(type,measured and true vertical depth) N/A N/A N/A N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A 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: 0 587 19 760 67 Subsequent to operation: 0 621 16 750 79 14.Attachments(required per 20 AAC 25.070,25.071,&25.283) 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 Q , WDSPL❑ Printed and Electronic Fracture Stimulation Data ❑ 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: 315-407 Contact Taylor Nasse Email tnasse(a�hilcorp.com Printed Name Taylor Nasse Title Operations Engineer �r Signatureri Phone907-777-8354 Date /� �/Y/ S i(•45— Form 10-404 Revised 5/2015 1: 3DMS.z421 SEP 0 4 2015 Submit Original Only • • Hilcorp Alaska, LLC Well Operations Summary Well Name API Number Well Permit Number Start Date End Date KBU 11-07 50-133-20556-00 205-165 7/11/15 7/14/15 Daily Operations: 07/11/2015-Saturday Meet at office. Mobe to location, PTW and JSA. Spot equipment and rig up lubricator. Pressure test to 250 psi low and 2,500 psi high. RIH w/2.75" GR, 1-3/4" spangs and Hyd jars down to 7,017' KB. Worked tools and could not go any deeper(sticky). POOH. RIH with 2.60" GR to 7,017' KB. Worked tools and could not get any deeper(sticky). POOH. RIH with 2.50" LIB to 7,017' KB. Hit down on obstruction and POOH. LIB showed some swedging down. RIH with 2-1/8* x 10' dummy gun down to 7,017' KB. Worked tools and could not go any deeper.Tools very sticky. POOH. Call Anchorage and discussed. RIH with 2.4" braided line brush down to 7,017' KB. Worked brush to 7,028' KB. Lost spang action. Had to get fast up run and 2-300 lb over pull to get free. Did not have to use oil jars to get free. Worked tools several times with same results. POOH. RIH with 1-3/4" x 5'drive down bailer to 7,017' KB. Worked bailer to 7,028' KB.Acted just like brush run. Looks like spangs are going below obstruction. Probably flapper on module. tried several times with same results. POOH. Rig down lubricator. Crew going to do some crane work for field. Plan forward is to rigged up 1-1/2"tools string in the morning and try that. If that don't work will go to 1-1/4" tool string. 07/12/2015-Sunday Sign in at office. Mobe to location. PTW and JSA. Spot equipment and rig up lubricator. PT to 250 psi low and 2,500 psi high. RIH w/2-1/4" LIB with 10' of 1-1/2" stem down to 7,019' KB. Hit down once and lose spang action. POOH. Sent pic to Anchorage. Pic in 0-Drive. RIH w/ 1-1/2" LIB with 10' of 1-1/2" stem down to 7,029' KB. Hit down once and lose spang action. POOH. Sent pic to Anchorage. Pic in 0-Drive. RIH w/2.75" blind box down to 7,021' KB. Beat down on obstruction several times. Would lose spang action each time.Would pull free with 4 to 500 lb overpull without setting off oil jars. POOH. Blind box showed a little tapering down. Ran 2.62" blind box to 7,021' KB. Beat down on obstruction several times and lose spang action each time. Would come free with 4 to 500 lb over pull except last time. Had to set oil jars off to get free.Talked to Anchorage and decided to rig down. POOH. Blind box show a little tapering down. Rig down lubricator and turn well back over to field. Move to KTU 43-06XRD2. 07/14/2015-Tuesday Sign in at office. Mobe to location. PTW and JSA. Rig up lubricator. PT to 250 psi low and 2,500 psi high. RIH w/2"x 10' Nova, 6 spf, 60 deg phase and tie into Expro CBL log. Run correlation log and sent to town. Get ok to perf from 6,957'to 6,967'. Spot gun and fire with 806.4 psi on tubing. Pressure spike to 808.9 psi and back to 806.6 psi. Well was still building before perf so hard to determine anything. POOH.All shots fired. RIH w/2"x 20' Nova, 6 spf, 60 deg phase and tie into Expro CBL log. Run correlation log and sent to town. Get ok to perf from 6,86660 6,886'. Spot gun and fire with 820 psi on tubing. Pressure spike to 824.3 psi and settled to 823.2 psi.Well was still building very slowly. POOH. All shots fired. Rig down lubricator and turn well over to field. Mobe equip to KBU 31-18 to run PLT tomorrow. NOTE: One reason each run took that long was the wireline had torqued up from the last job it was on.They had to pick back up 20' to 30' every 1,000' to get torque out of the line. • • KBU 11 -7 • Pad 14-6 SCHEMATIC tlacorp Alaska,t.l.c 490' FSL, 1,066' FWL, Permit#: 205-165 Sec. 6, T4N, R11 W, S.M. Conductor: API#: 50-133-20556-00 20" X-52 131 ppf Prop.Des: A-028142 Top Bottom KB Elevation: 87'(21'AGL) MD 0' 128' WBS#: DD.05.12830.CAP.CMP.01 TVD 0' 128' Latitude: 60°27'38.876"N --- Longitude: 151°15'47.584"W Surface Casing: X: 271,988.97 13-3/8" K-55 68 ppf BTC 77 2,362 537.28 Top Bottom S-pud: 11/10 /2005 MD 0' 1,717 TD: 11/29/2005 TVD 0' 1,680' Rig Released: 12/06/05 @ 1800 hrs. 16"hole Cmt w/543 sks(238 bbls)of PA#: 12.0 ppg,Type 1 cmt,100%returns 11 sks (5bbls)to surface. Tree crossing=4-3/4"Otis Intermediate Casing: 11 9-5/8" L-80 40 ppf BTC ttom Top of Cement(est.) a • MD T0'p 5,579' 500'above 9-5/8"shoe +., TVD 0' 5,299' @ 5,079'MD 1 12-1/4"hole Cmt w/297 sks(111 bbls)of 12.5 ppg Class G Lead& 248 sks(85 bbls) Excape System Detailsof 13.5 ppg Class G Tail -Ceramic flapper valves below 4°" PP V' 0A each module as follows: Production Casing: -17 Conventional flappers ,, 3-1/2" L-80 9.3 ppf EUE -No flapper below Module-1 Top Bottom 8rd MD 0' 7,870' Flappers MD(RKB): ' I- ! r TVD o' 7,604' Module 18-6,041' I f, r ' 8-1/2"hole Cmt w/1,067 sks(220 bbls)of 'g 15.8 ppg Class G,100%returns Module 17-6,230' II Module 16-6,311' Module 15-6,440' II Excape System Details Module 14-6,528' 43. -18 Excape modules placed Module 13-6,680' ' 1 -Green control line fired module 1 Module 12-6,788' II ,9 control line fired modules 2 thru 10 Module 11 -6,838' _ -Red contol line fired modules 11 thru 18 Ceramic flapper valves below each module Module 10-6,928' I LB-2E except for module 1 Module 9- 7,020 I1 Module 8 7,137 LB-3A Perfs MD(RKB): Module 7- 7,209' ,"k I Module 18-6,022'-6,032' (Beluga) Module 6 7,320' i 'Si '',4 Module 17-6,211'-6,221' (Beluga) I Module 16-6,292'-6,302' (Beluga) Module 5- 7,372' r Module 15-6,421'-6,431' (Beluga) Module 4- 7,473' I 1 Module 14-6,509'-6,519' (Beluga) Module 3- 7,598' Module 13-6,661'-6,671' (Beluga) 411 Module 2- 7,668' - 1 ,-* Module 12-6,769'-6,779' (Beluga) Module 1 - NA tI 1 Module 11 -6,819'-6,829' (Beluga) r 'r LB-2E- 6,866'-6,886' (Beluga. I Module 10-6,909'-6,919' (Beluga) LB-3A- 6,957'-6,967' (Beluga) , I 1 � Module 9 -7,001'-7,011' (Beluga) }„.7 Module 8 -7,118'-7,128' (Beluga) 1 P Module 7 -7,190'-7,200' (Beluga) rt Module 6 -7,301'-7 311' (Beluga) �, Module 5 -7,353'-7,363' (Beluga) Module 4 -7,437'-7,447' (Tyonek) i Module 3 -7579' - 7589' (Tyonek) Module 2 -7,649'-7,659' (Tyonek) I Taggeld!7,832'MD w/ 3/27/2014 TD PBTD 7,900'MD 7,832'MD 7,619'TVD 7,551'TVD Well Name&Number: Kenai Beluga Unit 11-7 Lease: Kenai Gas Field County or Parish:, Kenai Peninsula Borough State: Alaska Country: USA Perforations(MD): 6,022'-7,783' (TVD): 5,741'-7,502' Angle©KOP and Depth: 2°/100 ft @ 500'MD Angle/Perfs: 1° Dated Completed: 1/6/2006 Completion Fluid: 6%KCL Revised by: Donna Ambruz Last Revison Date: 8/7/2015 ti OF TH „, THE STATE Alaska Oil and Gas mw '; ofATA J KA Conservation Commission # ' •� ___ _ 333 West Seventh Avenue OF aTti' GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 Main: 907.279.1433 ALAS Fax• 907 276.7542 www.aogcc.alaska.gov Stan Porhola Operations Engineer s(„pNNEU L 0 6 2.015 Hilcorp Alaska, LLC (-1 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Kenai Gas Field, Beluga/Upper Tyonek Gas Pool, KBU 11-07 Sundry Number: 315-407 Dear Mr. Porhola: 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 '. Foerster Chair DATED this day of June, 2015 Encl. R CE YID STATE OF ALASKA JON 29 2W ALASKA OIL AND GAS CONSERVATION COMMISSION G / 3o 15 APPLICATION FOR SUNDRY APPROVALS AOGCU 20 MC 25.280 1.Type of Request: Abandon❑ Plug Perforations❑ Fracture Stimulate ❑ PuH Tubing ❑ Operations shutdown ❑ Suspend❑ Perforate Q • Other Stimulate ❑ Alter Casing ❑ Change Approved Program ❑ Plug for Redrill❑ Perforate New Pool ❑ Repair Well ❑ Re-enter Susp Well ❑ Other. ❑ 2.Operator Name: 4.Current Well Class: '7,37b 5.Permit to Drill Numbe Hilcorp Alaska,LLC Exploratory ❑ Development [7f •• 205-165 • 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic ❑ Service ❑ (r 6.API Number. Anchorage,AK 99503 50-133-20556-00-00 • 7.If perforating: 8.Well Name and Number What Regulation or Conservation Order governs well spacing in this pool? C.O.510A Kenai Beluga Unit(KBU)11-07 • Will planned perforations require a spacing exception? Yes ❑ No 0 9.Property Designation(Lease Number): 10.Field/Pool(s): FEDA028142 . Kenai Gas Field-Beluga/Upper Tyonek Gas Pool 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth ND(ft): Plugs(measured): Junk(measured): 7,900• 7,619- 7,832 ' 7,551 • N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 128' 20" 128' 128' Surface 1,717' 13-3/8" 1,717' 1,680' 3,450 psi 1,950 psi Intermediate 5,579' 9-5/8" 5,579' 5,299' 5,750 psi 3,090 psi Production 7,870' 3-1/2" 7,870' 7,604' 10,160 psi 10,540 psi Liner Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 3-1/2" 9.3*/L-80 7,870' Packers and SSSV Type: Packers and SSSV MD(ft)and ND(ft): N/A N/A 12.Attachments: Description Summary of Proposal Q 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic❑ Development❑✓ " Service ❑ 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: 07/13/15 OIL 0 WINJ p WDSPL ❑ Suspended 0 16.Verbal Approval: Date: GAS Q • WAG ❑ GSTOR ❑ SPLUG 0 Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Stan Porhola Email soorhola( hilcorp.com Printed NameStan Porhola Title Operations Engineer Signature dk' 6^ 2.�a, Phone 907-777-8412 Date 4�'COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3G----yo7 Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: Spacing Exception Required? Yes 0 No I Subsequent Form Required: I 0— -J 0 7 APPROVED BY _ Approved by: ..1W4..) COMMISSIONER THE COMMISSION Date:G-.3 0-/S. OAR0163111IN0AILd - to ofaSSubmn Form ane Form 10-403 Revised 5/2015 for 12 mo�i from the d to of approval. Attachments in Duplicate _ RBDMS-3' JUL - 1 2015 Ab. 4'• '• /s Well Prognosis Well: KBU 11-07 Hilcora Alaska,LI) Date: 6/29/2015 Well Name: KBU 11-07 API Number: 50-133-20556-00 Current Status: Producing Gas Well Leg: N/A Estimated Start Date: July 13th, 2015 Rig: N/A Reg.Approval Req'd? 403 Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 205-165 First Call Engineer: Stan Porhola (907) 777-8412 (0) (907) 331-8228 (M) Second Call Engineer: Chad Helgeson (907) 777-8405 (0) (907) 229-4824 (M) AFE Number: Current Bottom Hole Pressure: — 1,870 psi @ 7,164' TVD (Based on BHP Survey on 9/02/08) Maximum Expected BHP: — 2,732 psi @ 6,676' TVD (Based on RFT on 12/01/05) Max. Allowable Surface Pressure: — 2,064 psi (Based on actual reservoir conditions and gas gradient to surface (0.10psi/ft) Brief Well Summary Kenai Beluga Unit (KBU) 11-07 was drilled as a Grass roots EXCAPE completion in 2005 to target gas sands in the Beluga and Upper Tyonek formations. The EXCAPE modules were frac'd and placed on production in 2006. A capillary string was installed in 2009 to help with water unloading. The capillary string was pulled in January 2014.A coil tubing fill cleanout was performed in March 2014. The purpose of this work/sundry is to perforate additional zones in the Lower Beluga. Notes Regarding Wellbore Condition • Well is producing 500 mcf/d @ 60 psi. Will be shut-in during perforating. E-line Procedure: 1. MIRU E-line, PT lubricator to 2,500 psi Hi 250 Low. a. Tree connection is 6.5" OTIS. b. SITP will be 750 psi (Gas Pressure). 2. RU 2-3/8" 5 spf Connex HC wireline guns. 3. RIH and perforate the following intervals: Zone Sands Top (MD) Btm (MD) FT SPF Lower Beluga LB-2E 6,866' 6,886' 20' 5 f, Lower Beluga LB-3A 6,957' 6,967' 10' 5 Lower Beluga LB-3C 7,020' 7,051' 31' 5 a. Bleed tubing pressure to 750 psi before perforating. b. Proposed perfs shown on the proposed schematic in red font. c. Correlate using CBL Log dated 12/23/05 (CBL Tie-in log). d. Use Gamma/CCL/to correlate. e. Record tubing pressures before and after each perforating run. f. Proposed intervals are in the Beluga/Upper Tyonek Gas Pool. g. Spacing allowance is based CO 510a; no wells within 1,500' of property border. 4. RD E-line. Well Prognosis Well: KBU 11-07 Hilcorp Alaska,LL Date: 6/29/2015 5. Turn well over to production. Attachments: 1. Actual Schematic 2. Proposed Schematic Perm 05-165 API#: 50-133-20556-00 #: 250-133-20556-00141) K B U 11 -7 Prop.Des: A-028142 Pad 14-6 KB Elevation: 87'(21'AGL) Conductor: WBS#: DD.05.12830.CAP.CMP.01 490' FSL, 1,066' FWL, 20" X-52 131 ppf Latitude: 60°27'38.876"N Sec. 6 T4N R1 1 W S.M. Ililrnrp AlaKka,LLC To Bottom Longitude: 151°15'47.584"W ' ' MD 0'' 128' X: 271,988.97 TVD 0' 128' Y: 2,362,537.28 Spud: 11/10/2005 Surface Casing: TD: 11/29/2005 13-3/8" K-55 68 ppf BTC Rig Released: 12/06/05 @ 1800 hrs. Top Bottom PA#: MD 0' 1,717' ND 0' 1,680' 16"hole Cmt w/543 sks(238 bbls)of 12.0 ppg,Type 1 cmt,100%returns 11 sks (5bbls)to surface. Tree crossing=4-3/4"Otis 4 Intermediate Casing: 9-5/8" L-80 40 ppf BTC Top 0' Bottom lr MD 0' 5,579' 5,29 Top of Cement(est.) 12-1/4"ND hole Cmt w/297 sks 9(111 bbls)of 500'above 9-5/8"shoe 12.5 ppg Class G Lead& 248 sks(85 bbls) @ 5,079'MD ' of 13.5 ppg Class G Tail r Production Casing: Excape System Details ' 3-1/2" L-80 9.3 ppf EUE -Ceramic flapper valves below each module as follows: Tgp Bottom 8rd y�' MD 0' 7,870' -17 Conventional flappers 14• ND 0' 7,604' No flapper below Module-1 Nth, DIt 8-1/2"hole Cmt w/1,067 sks(220 bbls)of it. - j)j 15.8 ppg Class G,100%returns Flappers MD(RKB): Module 18-6,041' Excape System Details Module 17-6,230' -18 Excape modules placed Module 16-6,311' `'. -Green control line fired module 1 Module 15-6,440' - control line fired modules 2 thru 10 Module 14-6,528' - -Red contol line fired modules 11 thru 18 Module 13-6,680' ' -Ceramic flapper valves below each module Module 12-6,788' .,.1 ', except for module 1 Module 11 -6,838' • +, Perfs MD(RKB): Module 10-6,928' 4 Module 18-6,022'-6,032' (Beluga) Module 9 7,020 . Module 17-6,211'-6,221' (Beluga) Module 8- 7,137 ,4Module 16-6,292'-6,302' (Beluga) Module 7- 7,209' • }, D) Module 15-6,421'-6,431' (Beluga) Module 6- 7,320' ,, Di t . ' Module 14-6,509'-6,519' (Beluga) 7,372' •y Module 13-6,661'-6,671' (Beluga) Module 5 Module 4- 7,473' Dl Module 12-6,769'-6,779' (Beluga) Module 3- 7,598' + } Module 11 -6,819'-6,829' (Beluga) Module 2- 7,668' y lit Module 10-6,909'-6,919' (Beluga) 3 c Module 9 -7,001'-7,011' (Beluga) Module 1 - NA DI C Module 8 -7,118'-7,128' (Beluga) r # Module 7 -7,190'-7,200' (Beluga) 'r j l L Module 6 -7,301'-7,311' (Beluga) C Module 5 -7,353'-7,363' (Beluga) ,, Module Module 4 -7,437'-7,447' (Tyonek) Da Module 3 -7579' -,7589' (Tyonek) i Module 2 -7,649'-7,659' (Tyonek) t --B1 t Module 1 -7,773'-7,783' (Tyonek) r ILMI 1. Tagged @ 7,832'MD w/CT on 3/27/2014 TD PBTD 7,900'MD 7,832'MD 7,619'TVD 7,551'TVD Well Name&Number: Kenai Beluga Unit 11-7 Lease: Kenai Gas Field County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Perforations(MD): 6,022'-7,783' (TVD): 5,741'-7,502' Angle @ KOP and Depth: 2°/100 ft @ 500'MD Angle/Perfs: 1° Dated Completed: 1/6/2006 Completion Fluid: 6%KCL Revised by: Tom Fouts Last Revison Date: 1/23/2014 KBU 11 -7 PROPOSED Pad 14-6 SCHEMATIC Hilcorp Alaska,LLC 490' FSL, 1,066' FWL, Permit#: 205-165 'j Sec. 6, T4N, R11 W, S.M. Conductor: API#: 50-133-20556-00 20" X-52 131 ppf Prop.Des: A-028142 Top Bottom KB Elevation: 87'(21'AGL) MD 0' 128' WBS#: DD.05.12830.CAP.CMP.01 TVD 0' 128' Latitude: 60°27'38.876"N I Longitude: 151°15'47.584"W Surface Casing: X: 271,988.97 13-3/8" K-55 68 ppf BTC 2,362 537.28 Top Bottom Spud: 11/10/2005 MD 0' 1,717' TD: 11/29/2005 TVD 0' 1,680' AIg Released: 12/06/05 @ 1800 hrs. 16"hole Cmt w/543 sks(238 bbls)of PA#: 12.0 ppg,Type 1 cmt,100%returns 11 sks (5bbls)to surface. Tree crossing=4-3/4"Otis MINI 11Intermediate Casing: ,' 9-5/8" L-80 40 ppf BTC Top Bottom Top of Cement(est.) MD 0' 5,579' 500'above 9-5/8"shoe . , it& ND 0' 5,299' @ 5,079'MD ', 12-1/4"hole Cmt w/297 sks(111 bbls)of 12.5 ppg Class G Lead& 248 sks(85 bbls) Excape System Details , 4-4 of 13.5 ppg Class G Tail -Ceramic flapper valves below I. each module as follows: > Production Casing: - 17 Conventional flappers ( 3-1/2" L-80 9.3 ppf EUE -No flapper below Module-1 ,,,>, I t Top Bottom 8rd i#i; IMD 0' 7,870' Flappers MD(RKB): ND 0' 7,604' Module 18 6,041' - ' 115.8 ppg-1/2"hole CI sstG w/100 %7 returns0 bbls)of Module 17-6,230' I Module 16-6,311' _._ Module 15-6,440' I Excape System Details Module 14-6,528' .r 3 -18 Excape modules placed Module 13-6,680' -Green control line fired module 1 Module 12 6,788' IOr control line fired modules 2 thru 10 Module 11 -6,838' ^i, � -Red contol line fired modules 11 thru 18 b'w I. -Ceramic flapper valves below each module Module 10 6,928' '?': except for module 1 Module 9 7,020 Ai �� LB-2E Module 8- 7,137 • LB-3A Perfs MD(RKB): Module 7- 7,209' .i MINIM • Module 18-6,022'-6,032' (Beluga) Module 6- 7,320' , LB-3C Module 17-6,211'-6,221' (Beluga) Module 5- 7,372' II ti Module 16-6,292'-6,302' (Beluga) Module 15-6,421'-6,431' (Beluga) Module 4- 7,473' /, I Module 14-6,509'-6,519' (Beluga) Module 3- 7,598' •'" Module 13-6,661'-6,671' (Beluga) Module 2- 7,668' I Module 12-6,769'-6,779' (Beluga) Module 1 - NA ,` Ili Module 11-6,819'-6,829' (Beluga) �// , LB-2E- 6,866'-6,886' (Beluga) • Module 10-6,909'-6,919' (Beluga) ✓ (� , LB-3A- 6,957'-6,967' (Beluga) ' I Module 9 -7,001'-7,011' (Beluga) LB-3C- 7,020'-7,051' (Beluga) I Module 8 -7,118'-7,128' (Beluga) Module 7 -7,190'-7,200' (Beluga) -B{ Module 6 -7,301'-7,311' (Beluga) T Module 5 -7,353'-7,363' (Beluga) Module 4 -7,437'-7,447' (Tyonek) Module 3 -7579' -,7589' (Tyonek) ICI Tagged @ 7,832'MD w/CT on 3/27/2014 TD PBTD 7,900'MD 7,832'MD 7,619'TVD 7,551'TVD Well Name&Number: Kenai Beluga Unit 11-7 Lease: Kenai Gas Field County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Perforations(MD): 6,022'-7,783' (TVD): 5,741'-7,502' Angle @ KOP and Depth: 2°/100 ft @ 500'MD Angle/Perfs: 1° Dated Completed: 1/6/2006 _ Completion Fluid: 6% KCL Revised by: Stan Porhola Last Revison Date: Proposed Image Project Well ~listory File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. a© ~- ~ ~p ~ Well History File Identifier Organizing (done> RE CAN Color Items: ~Greyscale Items: ` ~Ol~-Qi ^ Poor Quality Originals: V ^ Other: ^ Two-sided IIIII~IIIIIIIIIII) DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: a.~,,,~reae~ iuuiuiAiiiiuii OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: NOTES: / ^ Other:: BY: Maria Date: fQ ~ ~ Isl Project Proofing III IIIIII IIIII II III BY: Maria Date: ~ iJ V /s/ - ~_ + ~ =TOTAL PAGES Scanning Preparation ~ x 30 - (Count does not include cover sheet) ~n/~ BY: Maria Date: /s/ r 118. Production Scanning III IIIIII (IIII II III Stage 7 Page Count from Scanned File: ~ 5 8 (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: _~YES NO BY: Maria Date: ~/(.,~. f D g lsl Stage 1 If NO in stage 1, page(s) discrepancies w///ere found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. II I II II II I II II I I III Rescanned III Illllllllll IIIII BY: Maria Date: lsl Comments about this file: a~e,.~~e~kea iiiumuuumii 1 0/612 0 0 5 Well History File Cover Page.doc STATE OF ALASKA AL .CA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon (J Repair Well LI Plug Perforations LJ Perforate U Other U CT FCO 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 ❑✓ Exploratory ❑ 205-165 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,Alaska 99503 •- 50-133-20556-00-00 7.Property Designation(Lease Number): 8.Well Name and Number: FEDA0281421 Kenai Beluga Unit 11-7 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): • N/A Kenai Gas Field/Up Tyonek Beluga Gas 11.Present Well Condition Summary: Total Depth measured • 7,900 feet Plugs measured N/A feet true vertical 7,619 feet Junk measured N/A feet Effective Depth measured ► 7,832 feet Packer measured N/A feet true vertical 7,551 feet true vertical N/A feet Casing Length Size MD TVD Burst Collapse Structural Conductor 128' 20" 128' 128' Surface 1,717' 13-3/8" 1,717' 1,680' 3,450psi 1,950psi Intermediate 5,579' 9-5/8" 5,579' 5,299' 5,750psi 3,090psi Production 7,870' 3-1/2" 7,870' 7,604' 10,160psi 10,540psi Liner RECEIVED Perforation depth Measured depth 6,022'-7,783' SCANNED MAY 2 9 2014 APR 0 7 2014 True Vertical depth 5,741'-7,502' AOGCC Tubing(size,grade,measured and true vertical depth) 3-1/2" 9.3#/L-80 7,870' 7,604' Packers and SSSV(type,measured and true vertical depth) N/A N/A N/A N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A RBDMAy MAY 1 4 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: 0 414 8 750 55 Subsequent to operation: 0 677 19 750 55 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run N/A Exploratory❑ Development Q • Service ❑ Stratigraphic ❑ Daily Report of Well Operations Yes 16.Well Status after work: Oil ❑ A Gas El 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: N/A Contact Paul Chan Email pchart CLhiIcorp.com Printed Nam Paul Chan Title Operations Engineer Signature Phone 907-777-8388 Date 4/3/2014 Form 10-404 Revised 10/2012 .‘it, 5---ZL �� Submit Original Only Ui1/��C"//y • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date KBU 11-7 50-133-20556-00 205-165 3/25/14 Daily Operations: 3/26/2014-Wednesday No operations to report. 3/27/2014-Thursday Hold PJSM. Discuss JSA and emergency procedures. Start equipment and crane. Spot N2 transport. PU injector. NU injector. Shell test to 2,200psi. Test good. Shut in well. Flowing 650 M at 60psi. Open swab. RIH pumping KCL at min rate KCL and N2. RIH taking returns to 7,832- soft tag. POOH. Cut N2 at 2,500'. OOH. Well flowing gas to flowback tank. ND injector. Install Night cap. Shut well in for approx 15 min to ND injector. SIWP built to 82psi. Turn well over to production. Secure well and location for the night. Pumped 127 bbls KCL. Pumped 150,000scf N2. Recovered 132 bbls in flowback tank. 3/28/2014- Friday No operations to report. 3/29/2014-Saturday No operations to report. 3/30/2014-Sunday No operations to report. 3/31/2014- Monday No operations to report. 4/1/2014-Tuesday No operations to report. Ir Permit #: 205-165 KBU 11 -7 API#: 50-133-20556-00 Prop.Des: A-028142 Pad 14-6 KB Elevation: 87'(21'AGL) Conductor: WBS#: DD.05.12830.CAP.CMP.01 490' FSL, 1,066' FWL, HilcrrpAlaska,LLC 20" X-52 131 ppf Top Bottom Latitude: 60°27'38.876"N Sec. 6, T4N, R11W, S.M. Longitude: 151°15'47.584"W MD 0' 128' X: 271,988.97 TVD 0' 128' Y: 2,362,537.28 Spud: 11/10/2005 r Surface Casing: LITD: 11/29/2005 13-3/8" K-55 68 ppf BTC Rig Released: 12/06/05 @ 1800 hrs. Top Bottom PA#: a,`, MD 0' 1,717' S ; TVD 0' 1,680' 4 16"hole Cmt wl 543 sks(238 bbls)of 12.0 ppg,Type 1 cmt,100%returns `,,` 11 sks (5bbls)to surface. :1,4, Tree crossing=4-3/4"Otis tE, Intermediate Casing: 9-5/8" L-80 40 ppf BTC r Top Bottom MD 0' 5,579' Top " i ` am TVD 0' 5,299' of Cement(est.) �' 12-1/4"hole Cmt w/297 sks(111 bbls)of 500'above 9-5/8"shoe12,5 ppg Class G Lead& 248 sks(85 bbls) @ 5,079'MD ' ° of 13.5 ppg Class G Tail r Production Casing: Excape System Details 1 3-1/2" L-80 9.3 ppf EUE -Ceramic flapper valves below Top Bottom 8rd each module as follows: r•` • MD o' 7,870' - 17 Conventional flappers TVD 0' 7,604' -No flapper below Module-1 1! �p 8-1/2"hole Cmt w/1,067 sks(220 bbls)of I „ 1 15.8 ppg Class G,100%returns Flappers MD(RKB): ..,1 It Module 18-6,041' - Excape System Details Module 17-6,230' i Lit -18 Excape modules placed Module 16-6,311' -Green control line fired module 1 Module 15 6,440' ,:.l l c , - control line fired modules 2 thru 10 Module 14-6,528' Iik'-. III-, -Red contol line fired modules 11 thru 18 Module 13-6,680' -Ceramic flapper valves below each module Module 12-6,788' II except for module 1 Module 11 -6,838' Module 10-6,928' II Os, Perfs MD(RKB): Module 9 7,020 Module 18-6,022'-6,032' (Beluga) Module 17-6,211'-6,221' (Beluga) Module 8- 7,137 t[y 7 Module 16-6,292'-6,302' (Beluga) Module 7- 7,209' ' lit Module 15-6,421'-6,431' (Beluga) Module 6- 7,320' "@ DI Module 14-6,509'-6,519' (Beluga) Module 5- 7,372' l , ) E Module 13-6,661'-6,671' (Beluga) Module 4- 7,473' Module 12-6,769'-6,779' (Beluga) + Module 11 -6,819'-6,829' (Beluga) Module 3- 7,598' 4# (f ' iiModule10-6,909'-6,919' (Beluga) Module 2- 7,668' _ Module 9 -7,001'-7,011' (Beluga) Module 1 - NA i. �i�` � Module 8 -7,118'-7,128' (Beluga) 111�rrr '* Module 7 -7,190'-7,200' (Beluga) `% ) Module 6 -7,301'-7,311' (Beluga) C Module 5 -7,353'-7,363' (Beluga) �) . Module 4 -7,437'-7,447' (Tyonek) 's 3 �''i, Blf 4' Module 3 -7579' -,7589' (Tyonek) Module 2 -7,649'-7,659' (Tyonek) -11 t 4',( Module 1 -7,773'-7,783' (Tyonek) y?. a t ; ` Tagged @ 7,832'MD w/CT on 3/27/2014 TD PBTD 7,900'MD 7,832'MD 7,619'TVD 7,551'ND Well Name&Number: Kenai Beluga Unit 11-7 Lease: Kenai Gas Field County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Perforations(MD): 6,022'-7,783' (TVD): 5,741'-7,502' Angle @ KOP and Depth 2°/100 ft @ 500'MD Angle/Perfs: 1° Dated Completed: 1/6/2006 Completion Fluid: 6%KCL Revised by: Tom Fouts Last Revison Date: 1/23/2014 STATE OF ALASKA ' ALA. .k OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon Li Repair Well U Plug Perforations U Perforate Li Other U Remove Capstring Performed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac ❑ Waiver ❑ Time Extension E 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 ❑ 205-165 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic❑ Service E 6.API Number: Anchorage,Alaska 99503 • 50-133-20556-00-00 7.Property Designation(Lease Number): 8.Well Name and Number: FEDA028142 Kenai Beluga Unit 11-7 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A Kenai Gas Field/Up Tyonek Beluga Gas 11.Present Well Condition Summary: Total Depth measured a 7,900 feet Plugs measured N/A feet true vertical 7,619 feet Junk measured N/A feet Effective Depth measured 7,832 feet Packer measured N/A feet true vertical 7,551 feet true vertical N/A feet Casing Length Size MD TVD Burst Collapse Structural Conductor 128' 20" 128' 128' Surface 1,717' 13-3/8" 1,717' 1,680' 3,450psi 1,950psi Intermediate 5,579' 9-5/8" 5,579' 5,299' 5,750psi 3,090psi Production 7,870' 3-1/2" 7,870' 7,604' 10,160psi 10,540psi Liner Perforation depth Measured depth 6,022'-7,783' SCANNED MAY 2 9 2094 RECEIVED JAN 2 3 20'', True Vertical depth 5,741'-7,502' AOGCC Tubing(size,grade,measured and true vertical depth) 3-1/2" 9.3#/L-80 7,870' 7,604' Packers and SSSV(type,measured and true vertical depth) N/A N/A N/A N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A ABDMS MAY 1 8 2014 Treatment descriptions including volumes used and final pressure: N/A �7 I 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 701 8.5 750 61 Subsequent to operation: 0 4 0 750 57 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run N/A Exploratory Development Q ► Service ❑ Stratigraphic ❑ Daily Report of Well Operations N/A 16.Well Status after work: Oil ❑ .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: N/A Contact Jeremy Mardambek Email jmardambek@hilcorp.com Printed Name Jeremy Mardambek Title Reservoir Engineer Signature -�/��' Phone 907-777-8388 Date 1/23/2014 /143/ ,_,c---2o— /L( Form 10-404 Revised 10/2012 Submit Original Only s , Permit#: 205-165 K B U 1 1 -7 API#: 50-133-20556-00 Prop.Des: A-028142 Pad 14-6 j'. ''.4-1' KB Elevation: 87'(21'AGL) Conductor: WBS#: DD.05.12830.CAP.CMP.01 490' FSL, 1,066' FWL, 20" X-52 131 ppf Latitude: 60°27'38.876"N Sec. 6 T4N R11 W S.M. tiaenrp Alaska,LLC. Top Bottom Longitude: 151°15'47.584"W ' ' MD 0' 128' X: 271,988.97 TVD 0' 128' T. 2,362,537.28 Spud: 11/10/2005 Surface Casing: TD: 11/29/2005 ` 13-3/8" K-55 68 ppf BTC Rig Released: 12/06/05 @ 1800 hrs. Tom Bottom PA#: MD 0' 1,717' TVD 0' 1,680' ., 1LI 16"hole Cmt w/543 sks(238 bbls)of 12.0 ppg,Type 1 cmt,100%returns 11 sks (5bbls)to surface. s• Intermediate Casing: Tree crossing=4-3/4"Otis 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 5,579' " TVD 0' 5,299' Top of Cement(est.) o, 12-1/4"hole Cmt w/297 sks(111 bbls)of 500'above 9-5/8"shoe 12.5 ppg Class G Lead& 248 sks(85 bbls) @ 5,079'MD of 13.5 ppg Class G Tail Excape System Details Production Casing: -Ceramic flapper valves below $" 1,g 3-1/2" L-80 9.3 ppf EUE each module as follows: 7£„ Tg Bottom 8rd -17 Conventional flappers €�* MD 0' 7,870' �[ TVD 0' 7,604' -No flapper below Module-1 lit 7 < ' 8-1/2"hole Cmt w/1,067 sks(220 bbls)of Flappers MD(RKB): ;, ? y 15.8 ppg Class G,100%returns Module 18-6,041' k.a I I ' Module 17-6,230' ; Excape System Details x 1 -18 Excape modules placed Module 16-6,311' '4 Green control line fired module 1 Module 15-6,440' control line fired modules 2 thru 10 Module 14-6,528' 411i1 - contol line fired modules 11 thru 18 Module 13-6,680' Ceramic flapper valves below each module Module 12-6,788' -DI except for module 1 Module 11 -6,838' Perfs MD(RKB): Module 10 6,928' DI Module 18-6,022'-6,032' (Beluga) Module 9- 7,020 ( DIX Pikt Module 17-6,211'-6,221' (Beluga) Module 8- 7,137 a ? k, Module 16-6,292'-6,302' (Beluga) Module 7- 7,209' DI il, Module 15-6,421' 6,431' (Beluga) Module 6- 7,320' V F (� k Module 14-6,509' 6,519' (Beluga) Module 13-6,661' 6,671' (Beluga) Module 5- 7,372' k; 3 t Module 12-6,769'-6,779' (Beluga) Module 4- 7,473' 1, Module 11 -6,819'-6,829' (Beluga) Module 3- 7,598' Module 10-6,909'-6,919' (Beluga) Module 2- 7,668' DI r Module 9 -7,001'-7,011' (Beluga) �' Module 1 - NA it Module 8 -7,118'-7,128' (Beluga) Module 7 -7,190'-7,200' (Beluga) I Module 6 -7,301'-7,311' (Beluga) Module 5 -7,353'-7,363' (Beluga) r ,, I Module 4 -7,437'-7,447' (Tyonek) 1� Module 3 -7579' -,7589' (Tyonek) Module 2 -7,649'-7,659' (Tyonek) Module 1 -7,773'-7,783' (Tyonek) Capillary String: (Installed 8/6/09) l� (Inspected 9/13/101 V 3/8" 2205 Stainless Steel i. Two Bottom MD 0' 7,437' TVD 0' 7,156' Tagged @ 7,444'MD w/2.25"GR on(7/11/09) TD PBTD 7,900'MD 7,832'MD 7,619'TVD 7,551'TVD Well Name&Number: Kenai Beluga Unit 11-7 Lease: Kenai Gas Field County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Perforations(MD): 6,022'-7,783' (TVD): 5,741'-7,502' Angle @ KOP and Depth: 2°/100 ft @ 500'MD Angle/Perfs: 1° Dated Completed: 1/6/2006 Completion Fluid: 6%KCL Revised by: Tom Fouts Last Revison Date: 1/23/2014 1 Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date KBU 11-7 50-133-20556-00-00 205-165 1/22/14 1/22/14 Daily Operations: 1/22/2014-Wednesday RU Dynacoil unit. Remove slips. Remove 3/8" capstring and from 7,437'. Shut in swab valve. Remove capstring master valve and pack-off. RD and return to production. 1/23/2014-Thursday No operations to report. 1/24/2014-Friday No operations to report. 1/25/2014-Saturday No operations to report. 1/26/2014-Sunday No operations to report. 1/27/2014- Monday No operations to report. 1/28/2014-Tuesday No operations to report. ~ ~ 1lliarathon JKARATHON /"llaska Productian LLC ~ ~ ~ ~ ~ r '~:' . ~ ; r = ~, - ~_~s ~~ c .'(i;~~I L : ., ,; August 3'l, 2009 ~~as~ca CJi~ ~~ ~~.. ,. ~ ,~ ~: .~;r;: ; Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 Reference: 10-404 Report of Sundry Well Operations Field: Kenai Gas Field Well: Kenai Beluga Unit 11-7 Dear Mr. Aubert: Ma•hon Alaska Production LLC Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Tetephone 907/283-1371 Fax 907/283-1350 ~ ~~ ~,05 ~ Attached for your records is the10-404 Report of Sundry Well Operations for KBU 1'1-7 well. This report covers the capillary string installation performed under Sundry #309-196. The 3/8" capillary string was installed on 8/5/2009 and set at a depth of 7,437' MD. Please contact me at (907) 283-1371 if you have any questions or need additionat information. - Sincerely, ~..~.t,v~., _ ~ ~,~-,ee.~ ::s e~"~~`~§ 1' ` r~ ~~j}r1 .~. .~ U:a Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10-404 Report of Sundry Well Operations cc: Houston Well File Operations Summary Kenai Well File Well Schematic KJS STATE OF ALASKA ALAS~IL AND GAS CONSERVATION COMMI~N REPORT OF SUNDRY WELL OPERATIONS `~ k: P ~ 2 '~~~i ~ C~ ;:z, ' ` . ~.~~ ~:xY;~?~`!~ss~inx'~ 1. Operations Abandon Repair Well Plug Perforations Stimulate Other ~ Install Capillary Performed: Alter Casing ~ Pull Tubin~ Perforate New Pool ~ Waiver~ Time E~ension ^ String Change Approved Program ^ Operat. Shutdowr0 Perforate ^ Re-enter Suspended Well ~ z. oPerator Marathon 4. Well Class Before Work: 5. Permitto Drill Number: rvame: Alaska Production LLC Development 0 Exploratory^ 205-165 i 3. Address: PO BOX 1949 Stratigraphic ^ Service ^ 6. API Number: ' Kenai Alaska 99611-1949 50-133-20556-00-00 , , 7. KB Elevation (ft): 9. Well Name and Number: 87' 21' AGL Kenai Belu a Unit 11-7 , 8. Property Designation: 10. FieldlPool(s): A- 028142 Kenai Gas Field / Beluga & Tyonek Pools 11. Present Well Condition Summary: Total Depth measured 7,gpQ' , feet Plugs (measured) NA true vertical 7,619' feet Junk (measured) NA Effective Depth measured 7,$32' • feet true vertical 7,551' feet Casing Length Size MD ~ TVD Burst Collapse Structural Conductor 108' 20" 128' 128' SurFace 1,696' 13-3/8" 1,717' 1,680' 3,450 psi 1,950 psi Intermediate 5,558' 9-5/8" 5,579' 5,299' S,750 psi 3,090 psi Production 7,g49' 3-1/2" 7,870' 7,604' 10,160 psi 10,540 psi Liner Pertoration depth: Measured depth: 6,022' - 7,783' True Vertical depth: 5,741' - 7,502' Excape Tubing 3-1/2" ' L-80 7,870' Tubing: (size, grade, and MD) Capillary String 3/8" 2205 Stainless Steel 7,437' Packers and SSSV (type and measured depth) NA ~,~ ~~ k,. , NA 12. Stimulation or cement squeeze summary: Intervals treated (measured): A 3/8" stainless steel capillary string was installed to a setting depth of 7,437' MD serving as a conduit for foamer insertion. ~ Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 1,265 24 1 300 Subsequent to operation: 0 1,350 36 1 340 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development Q Service ~ Daily Report of Well Operations X 16. Well Status after work: Oil ^ Gas ^~ WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 309-196 Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Technician ' Signature :~ Phone (907) 283-1371 Date August 31, 2009 ~ Form 10-404 Revised 04l2006 ~ c~ ~~~_ ~~~ ~j ~s ~~~Q Submit Original Only ~~~~ - ~perations Summary Report ~ M s~~~~n~p~ Well Name: KENAI BELUGA UNIT 11-7 Report Date: 7112f2009 Job Category: R&M MAINTENANCE 21 tlrs~mmary b11RU Expro wireline to perform PLT survey for cap string install. RIH w/2.25" GR and tag ~ 1,444'. RIH w/ PLT string and perfom flowing PLT ~ 60, 90, 120 fpm. RDMO Expro. o~ s~rtTme E~arme oir o coae AuMU Coae sgda 7ro~bkCOac Canme~t 07:30 08:15 0.75 SAFETY MTG AF Held PJSM wI Expro and aperartor. Discussed emergency operations, smokingRnuster areas, emergency lights, and crane operations. Obtained safe work ermit. 08:15 09:30 1.25 RURD ELEC AF RU wireline truck and PU lubricator and tool string. 09:30 10:00 0.50 TEST EQIP AF PT lubricahor to 300 psi low ~nd 1500 psi high. Good test. 10:00 11:45 1.75 RUNPUL ELEC AF RIH w/2.25" cerrtralizer and 1" swage. Tag solid PBTD @ 7,444'. POOH. 11:45 12:15 0.50 LOG PRQD TA MDLG MU tool string and test tools. Telemetry lost communicartion. Swap aut ools. 12:15 15:45 3.50 LOG PROD AF RIH wl PLT and spinner tool string. Surface: 308psia & 49degF. Begin 30fpm down pass ~ 5800'. Spinner ~ery erratic due to low flow and debris. Spinner quit ~ 7240'. PU to 5800'to clear spinner and begin 60 fpm downpass. Spinner quit ~ 7200'. Set down and fell through Module 7 flapper to 7350' wJ no spinner. PU to 5800' and spinner isn`t working. POOH to fix s inner. 15:45 18:45 3.00 L~G PROD AF RIH wl same BHA and begin 90fpm downpass ~ 5800'. Begin 90 fpm up pass cL?i 7210'. Begin 120fpm downpass ~.m 5800'. Begin 120fpm up pass ~,rn 7210'. RIH ~ 120fpm and spinner locked up again ~ 7250'. Wf and cleared spinner. Begin 60fpm up pass ~ 7220'. End pass ~ 5800' and PQ4H. 18:45 19:45 1.00 RURD ELEC AF RD wireline truck and lubricator. Sign out, turn in permit, and leave location. Daity Operations Report Date: 8I612009 Job Category: R&M MAINTENANCE ~I Hr S~mmary Install 3~" capillary string to 7,437' after tagging ~t 7,444'. Set Fluid Corrtral Valve to 3,200 psi. ~rtrme e~aTme o~r o coae p,cw corx o~a s~da Tro~DkCOtle canme~t 07:30 08:45 1.25 SAFETY MTG A~F PJSM. Discuss alarms, muster are~, operations, JSA, overhead haxards, man-lift saf~ty. Obtained safe work permit. 08:45 12:15 3.50 RURD COIL AF Drop soap stick down well. Lay liner and spot equipmerd. Set Fluid Corrtrol Value to 3200 si. Install lon wellhead ada er. Land in ector on wellhead. 12:15 13:00 0.75 TEST HD AF Presure test pack-off. FAIL. Leak on top of pack-off. 13:00 14:30 1.50 RURD COIL AF Rebuild pack-off. Problem found in new 114" nipple. 14:30 15:00 0.50 RURD COIL AF Land injector. 15:00 15:30 0.50 RURD COIL AF Re-pressure test pack-off to 1600 psi. PASS. 15:30 18:30 3.00 RURD COIL AF Run 3P8" coil ir~to well. Tag 7,444'. Hang coil BHA at 7,437'. 18:30 19:30 1.00 PUMP TRET AF Pum 27 allons of foamer ir~to well. Connect to CICM. Set at 1 d. 19:30 21:00 1.50 RURD COIL AF Rig down. 21:00 21:30 0.50 SECURE LL AF Secure wellhead. Hang warning signs on upperAower master valves and chain off with yellow pl~stic chains. Turn in work permit. Leave locartion. www.peloton.com Report PriMed: 8R6f2009 ~: 50-133-20556-00 ~. Des: A-028142 :levation: 87' (21' AGL) i #: DD.05.12830.CAP.CMP.01 ude: 60° 27' 38.876" N itude: 151° 15' 47.584" W 271,988.97 2,362,537.28 ~: 11 /10/2005 11/29/2005 Released: 12/O6/05 @ 1800 hrs. Tree crossing = 43/4" Otis Top of Cement (est.) 500' above 9-5/8" shoe @ 5,079' M D Ceramic flapper valves below each module as follows: Module 18 - 6,043' Module 17 - 6,234' Module 16 - 6,315' Module 15 - 6,442' Module 14 - 6,531' Module 13 - 6,680' Module 12 - 6,789' Module 11 - 6,840' Module 10 - 6,931' Module 9 - 7,023' Module 8 - 7,140' Module 7 - 7,213' Module 6 - 7,325' Module 5 - 7,378' Module 4 - 7,463' Module 3 - 7,605' Module 2 - 7,677' Module 1 - NA Caoillarv Strinq: Installed 8/6/09 3/8" 2205 Stainless Steel Top Bottom MD 0' 7,437' TVD 0' 7,156' Tagged @ 7,444' MD on 7/11/09 with a 2.25" GR • KBU 11-7 Pad 14-6 490' FSL, 1,066' FWL, Sec. 6, T4N, R11 W, S.M. .• ~ ., .~ i : ~ : :; ~ .~ .±~ a~ ~ . .~ ~~ ~~. TD PBTD 7,900' MD 7,832' MD 7,619 ' ND 7,551' TVD ~ M M~w-rnoM Conductor: 20" X-52 131 ppf Top Bottom MD 0' 128' ND 0' 128' 13-3/8" K-55 68 ppf BTC Top Bottom MD 0' 1,717' ND 0' 1,680' 16" hole Cmt w/ 543 sks (238 bbls) of 12.0 ppg, Type 1 cmt, 100% returns 11 sks (5bbls) to surface. 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' S,579' ND 0' S,299' 12-1/4" hole Cmt w/ 297 sks (111 bbls) of 12.5 ppg Class G Lead & 248 sks (85 bbls) of 13.5 ppg Class G Tail 3-1/2" L-80 9.3 ppf EUE Top Bottom 8rd MD 0' 7,870' ND 0' 7,604' 8-1/2" hole Cmt w/ 1,067 sks (220 bbls) of 15.8 ppg Class G, 100% returns - 18 Excape modules placed - Green control line fired module 1 - control line fired modules 2 thru 10 - Red contol line fired modules 11 thru 18 - Ceramic flapper valves below each module except for module 1 Perfs MD (RKB): Module 18 - 6,022' - 6,032' (Beluga Module 17 - 6,211' - 6,221' (Beluga) Module 16 - 6,292' - 6,302' (Beluga) Module 15 - 6,421' - 6,431' (Beluga) Module 14 - 6,509' - 6,519' (Beluga) Module 13 - 6,661' - 6,671' (Beluga) Module 12 - 6,769' - 6,779' (Beluga) Module 11 - 6,819' - 6,829' (Beluga) Module 10 - 6,909' - 6,919' (Beluga) Module 9 - 7,001' - 7,011' (Beluga) Module 8 - 7,118' - 7,128' (Beluga) Module 7 - 7,190' - 7,200' (Beluga) Module 6 - 7,301' - 7,311' (Beluga) Module 5 - 7,353' - 7,363' (Beluga) Module 4 - 7,437' - 7,447' (Tyonek) Module 3 - 7579' - ,7589' (Tyonek) Module 2 - 7,649'- 7,659' (Tyonek) Module 1 - 7,773' - 7,783' (Tyonek) Well Name & Number: Kenai Beluga Unit 11-7 Lease: Kenai Gas Field County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 6,022' - 7,783' (TVD): 5,741' - 7,502' Angle @ KOP and Depth: 2° / 100 ft ~ 500' MD Angle/Perfs: 1° Dated Completed: 1/6/2006 Completion Fluid: 6% KCL Revised by: Kevin Skiba Last Revison Date: 8/27/2009 • ~~~ ,,, ~ ~~ ~~ '' r ° ! k ~a ~~ :M &{°~~~ ~ ~` '~~~~E ~I ~~ ~~~ ~~ ~ x ALASKA OIL A1~TD GAS CO1~T5ERQATIOI~T COI~IIKISSIOIQ Michael D. Dammeyer Production Engineer Marathon Oil Company PO Box 1949 Kenai, AK 99611 • ~" SARAH PALIN, GOVERNOR t d ," 333 W. 7th AVENUE, SUITE 100 ~` ANCHORAGE, ALASKA 99501-3539 PHONE {907) 279-1433 FAX (907) 276-7542 ~~~.,:~~ ~ r ~ r,~ P ~ 20 Re: Kenai Gas Field, Upper Tyonek Beluga Gas, KBU 11-7 Sundry Number: 309-196 ~~j ~ "~ Dear Mr. Dammeyer: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. ~ .p Chair DATED this ~~ Zday of June, 2009 Encl. ~.I M Marathon MARATHON Oil Company June 9, 2009 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-403 Application for Sundry Approvals Field: Kenai Gas Field Well: Kenai Beluga Unit 11-7 Dear Mr. Maunder: • Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~~~~ JUN I I ZOGy laslca Oil & Gas Cons. Commisso3 Anchorage Marathon proposes to run a 3/8" capillary string in KBU 11-7 to mitigate water loading. The target setting depth for this capillary string is 7,442' MD. Please call me at (907) 283-1371 if you have any questions or need additional information. Sincerely, Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10-403 Application for Sundry Approvals cc: AOGCC Current Well Schematic Houston Well File Detailed Operations Program Kenai Well File KJS -- STATE OF ALASKA (~, (2'~I r.U l ALASK~L AND GAS CONSERVATION COMMIS ~G~ ~-~ti APPLICATION FOR SUNDRY APPROVALS ~l a2~~~~~ 20 AAC 25.280 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown^ Perforate ^ Waiver ^ Other Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension ^ Install Capillary Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ String _ 2. Operator Name: Marathon OII Conl an p y 4. Current Well Class: 5. Permit to Drill Number: Development ^ Exploratory ^ 205-165 - 3. Address: PO BOX 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20556-00-00' 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: ^ ~ Kenai Beluga Unit 11-7~ Spacing Exception Required? Yes No 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): A- 028142 ~ 8T ~ (21' AGL) Kenai Gas Field /Beluga & Tyonek Pools 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 7,900' 7,619' - 7,832' - 7,551' - NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 108' 20" 128' 128' Surface 1,696' 13-3/8" 1,717' ' 1,680' 3,450 psi 1,950 psi Intermediate 5,558' 9-5/8" 5,579' i' 5,299' 5,750 psi 3,090 psi Production 7,849' 3-1/2" 7,870' % 7,604' 10,160 psi 10,540 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 6,022' - 7,783' 5,741' - 7,502' Excape 3-1/2" L-80 7,870' ~ Capillary ~ Packers and SSSV Type: Packers and SSSV MD (ft): NA NA 13. Attachments: Description Summary of Proposal ^ 14. Well Class after proposed work: Detailed Operations Program Q BOP Sketch ^ Exploratory ^ Development ^~ - Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: July 2, 2009 ~ Oil ^ Gas ^~ _ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Michael D. Dammeyer Title Production Engineer Signature ~~~ C~~---~ Phone (907) 283-1333 Date June 9, 2009 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~ ` f ~, Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ ~UN 1 Y 2~~g Other: Alaska Oil & Gas Cons. Commission Anchorage Subsequent Form Required: ~ © ~ U t / 1 T ". sJ , I °" APPROVED BY / ~ t Approved by: COMMISSIONER THE COMMISSION Date: Form 10-403 Revised 06/2006 Submit in Duplicate C~ 2008 Capillary String Installation KBU 11-7 Capillary String Install Pad 14-6 WBS: Submitted Objective • Install capillary string (3/8" 2205 0.049" WT) into well for delivering foamer to alleviate liquid loading. Procedure Capstring Set Depth: 7,442' TVD at Set Depth: 7,161' Coil length: 8,000' Tag: 7,454' (9/08) Installation Procedure: Disconnect power to wellhouse (call electrician) MI crane, manlift. Remove wellhouse. On site: 8,000' spool, Well Head Adapter -Long (WHA), Sundry, Work Permit, Well Control Standards Sheet. Install Ca ip llary Strip (g,JSA): 1. MIRU BJ Dyna-Coil unit. Place liner around wellhead and truck. 2. Shut swab valve, pull tree-cap flange, remove OTIS blanking plug. 3. Replace plug with WHA (note o-ring). MU flange. Pressure test 1.Sx SPJVHP. 4. P/LT Dyna-Coil injector with crane, run 3/8" string through injector. 5. Set Fluid Control Valve pressure = (Setting TVD 7,160')(0.433 psi/ft H20)(1.036 foamer SG) = 3,200 psi (use BHP as a safety factor). ~ 6. MU BHA; run the 3/8" string through pack-off; attach BHA. 7. Perform "pull test" on BHA. 8. Thread pack-off assembly into 2-7/8" female connection (a wrench or chain tongs may be needed to hold the adapter from turning). Wrap wellhead with absorbents to catch drips. 9. Configure tubing to pump foamer downhole while running in, or cap tubing end. 10. Set Rattiguns to running tightness, and pump up pressure on pack-off. 11. Open swab valve. 12. Adjust Rattiguns and pressure on pack-off as needed to minimize leaks. 13. RIH to setting depth of 7,442'. 14. Set slips. Set Rattiguns; leave 1.5 times SIWHP on hydraulic pack-off. 15. Pull tubing excess through injector. 16. Cap tubing with a Swagelok cap and valve, pressure gauge, and filter. 17. Lockout Swab, Upper Master, and Lower Master as per Capstring Lockout Procedure. 18. Hookup injection line to CICM. NOTE: Start foamer at 1 gpd. 19. RDMO. Cleanup site. Sign-out. 20. Replace well house NOTE: When replacing well house, be careful of the tubing "bend" as it goes back inside if it extends through the roof. KBU 11-7 ~: 50-133-20556-00 i. Des: A-028142 :levation: 87' (21' AGL) i #: DD.05.12830.CAP.CMP.01 ude: 60° 27' 38.876" N itude: 151° 15' 47.584" W 271,988.97 2,362,537.28 ~: 11 /10/2005 11/29/2005 2eleased: 12/06/05 @ 1800 hrs. Tree crossing =4-3/4" Otis Top of Cement (est.) 500' above 9-5/8" shoe @ 5,079' MD - Ceramic flapper valves below each module as follows: Module 18 - 6,043' Module 17 - 6,234' Module 16 - 6,315' Module 15 - 6,442' Module 14 - 6,531' Module 13 - 6,680' Module 12 - 6,789' Module 11 - 6,840' Module 10 - 6,931' Module 9 - 7,023' Module 8 - 7,140' Module 7 - 7,213' Module 6 - 7,325' Module 5 - 7,378' Module 4 - 7,463' Module 3 - 7,605' Module 2 - 7,677' Module 1 - NA Pad 14-6 490' FSL, 1,066' FWL, Sec. 6, T4N, R11W, S.M. {~ L ~. ~~ #s .~ ;. ~~ ti~ TD PBTD 7,900' MD 7,832' MD 7,619 ' ND 7,551' ND • M MAw-n~oM Conductor: 20" X-52 131 ppf Top Bottom MD 0' 128' ND 0' 128' 13-3/8" K-55 68 ppf BTC Top Bottom MD 0' 1,717' ND 0' 1,680' 16" hole Cmt w/ 543 sks (238 bbls) of 12.0 ppg, Type 1 cmt, 100% returns 11 sks (Sbbls) to surface. 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 5,579' ND 0' 5,299' 12-1/4" hole Cmt w/ 297 sks (111 bbls) of 12.5 ppg Class G Lead 8 248 sks (85 bbls) of 13.5 ppg Class G Tail 3-1/2" L-80 9.3 ppf EUE Top Bottom Srd MD 0' 7,870' ND 0' 7,604' 8-112" hole Cmt w/ 1,067 sks (220 bbls) of 15.8 pqg Class G, 100% returns - 18 Excape modules placed -Green control line fired module 1 - control line fired modules 2 thru 10 -Red contol line fired modules 11 thru 18 - Ceramic flapper valves below each module except for module 1 Perfs MD (RKB): Module 18 - 6,022' - 6,032' (Beluga Module 17 - 6,211' - 6,221' (Beluga) Module 16 - 6,292' - 6,302' (Beluga) Module 15 - 6,421' - 6,431' (Beluga) Module 14 - 6,509' - 6,519' (Beluga) Module 13 - 6,661' - 6,671' (Beluga) Module 12 - 6,769' - 6,779' (Beluga) Module 11 - 6,819' - 6,829' (Beluga) Module 10 - 6,909' - 6,919' (Beluga) Module 9 - 7,001' - 7,011' (Beluga) Module 8 - 7,118' - 7,128' (Beluga) Module 7 - 7,190' - 7,200' (Beluga) Module 6 - 7,301' - 7,311' (Beluga) Module 5 - 7,353' - 7,363' (Beluga) Module 4 - 7,437 - 7,447 (Tyonek) X Module 3 - 7579' - ,7589' (Tyonek) Module 2 - 7,649'- 7,659' (Tyonek) Module 1 - 7,773' - 7,783' (Tyonek) Well Name & Number: Kenai Beluga Unit 11-7 Lease: Kenai Gas Field County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 6,022' - 7,783' (TVD): 5,741' - 7,502' Angle @ KOP and Depth: 2° / 100 ft @ 500' MD Angle/Perfs: 1° Dated Completed: 1/6/2006 Completion Fluid: 6% KCL Revised by: Kevin Skiba Last Revison Date: 6/9/2009 Marathon MARATHON Oil Company N 'i. ~ ~7 ~ Dom' MAY 1 ~ 2UU~3 May 16, 2008 -~Nask~a Uil i~ C~as Cons. Garramissior~ .~nrhora~~ Alaska Oil & Gas Conservation Commission Attn: Howard Okland 333 W. 7'~' Avenue, Suite 100 Anchorage, AK 99501 RE: Marathon Kenai Beluga Unit 11-7 (KBU 11-7) -API 50-133-20556-00 CONFIDENTIAL Dear Mr. Okland: Overnight Carrier The following confidential digital well data are enclosed for the above referenced well. KIiU 11-7 Directional Survey .........................................................................................................digital Core Data Analysis ........................................................................................................digital Core Data Photos ...........................................................................................................digital EPOCH Mud Log Data ..................................................................................................digital/paper MD Array Induction Focused Electric (Final & TD Run) .............................................paper MD Array Induction Vectar Processing (Final & TD Run) ...........................................paper MD Photo Density Dual Spaced Neutron (Final & TD Run) ........................................paper MD Compensated Sonic (Final & TD Run) ..................................................................paper TVD Array Induction Focused Electric TD Run ...........................................................paper Precision Energy Services Well Log Data .....................................................................digital One CD containing digital well logs and above data (see attached CD contents)..........digital Please indicate your receipt of this data by signing below and returning one copy to my attention at the letterhead address or fax to 713-499-6720. Thank you, ~~" ~QS -((O5~ Deborah A. Svatek-Logue Advanced Administrative Assistant Received by: '~'. ~.~' ~... Date: MAY ~l ~ 7..00 i Ala~xa Asset Team United States Production Operations P.O. Box 3128 Houston, TX 77253 Telephone 713-296-3398 Fax 713-499-6720 Enclosures ilaska. Oil ~ C~as Cons. Coinr~~ission ianchorago KBU ll-7 Digital Date Other ~' 5013320556_KBU 11.7 Core Data.xls 299 KB Microsoft Excel Worksheet 1!26!200710:02 AM Fies Currently on the CD 5013320556 kbu 11.7 cae_photos.zip 8,150 ... WinZip File 10!4!200610:21 AM files Currently on the CD U 5013320556_KBU 11.7 dir_survey.prn 3 KB PRN File 11!29!2005 3:43 PM Files Currently on the CD 5013320556 KBU 11.7_intermediate_Iogs.las 1,968 ... LAS File 11!21!200511:54 PM Files Currently on the CD st 5013320556 KBU 11.7_plotted intermediate.dpk 1,197 ... DPK file 1218!2005 3:57 PM Fies Crurently on the CD it 5013320556 KBU 11-7 TD_plotted.dpk 1,572... DPK File 11!30!2005 8:32AM Fies Currently on the CD M I~ Mudlog Data File Folder 5!16!20081:57 PM Fies Currently on the CD P Ij~IPrecision Energy Services. Wi-eline.logs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . File Folder 5!16!200810:59 AM Files Currently on the CD Mudlog Data DMLData File Folder 5!16!20081:57 PM Files Currently on the... I~ Morning Reports File Faller 5!16!20081:57 PM Files Currently an the... Ij~ PDF Files File Folder 511 fil200$1:57 PM Files Currently an the.., Ij~ Well LAS File File Folder 5!16!20081:57 PM Files Currently on the... Iy~Well Report File Folder 5!16!20081:57 PM Files Currently on the... DMLData .................... ~• KBU11-l.dbf 28,312 KB DBF File 1213!20051:42 PM Fies Currently on the... kbu! l -7.hdr 1 KB HDR File 1 211 312005 8:27 PM Fies Currently on the... KBU11.7.mdx 133 KB MDX File 12!3120051:42 PM Files Currently on the... KBU11-7_SCt..DBF 2 KB DBF File 11!28!20051:10 PM Fies Currently on the... KBU11-7_SCL.MDX 6 KB MDX File 11!28!20051:10 PM Fies Currently on the... KBU11.7_tvd.dbf 626 KB DBF File 11/29/2005 7:19 AM Files Currently on the... KBU11-7_tvd.mdx 129 KB MDX File 11/29/2005 7:19AM Files Currently on the... kbu11.7r.dbf 42 KB DBF File 1 1 13012005 8:06 AM Fies Currently on the... kbu! l -7r.mdx 26 KB MDX File 11!3012005 $:06 AM Files Currently on the... PDF Files KBU11.7 DD.pdf 9,775 KB Adobe Acrobat 7.0 ... 1 2/4/2005 1 2:34 AM Fibs Currents on the... ~'. KBU11-l ML MD.pdf 8,172 KB Adobe Acrobat l.0 ... 12!4!200512:12 AM Fies Currently on the... '~; KBU11-7 ML TVD.pdf 7,825 KB Adobe Acrobat 7.0 ... 12!4!200512:57 AM Fies Currently on the... Well LAS File KBU 11 •l.las 5,209 KB LAS F1e 12!3!20051:41 PM Files Ct~renkly on the... Well Report ~We~ Report KBU 11-l.doc Mornint? Reports 1,603 KB Microsofk Word Doc... 12!13!2005 6:12 PM Fees Currently on the... 3~ 20051109.htm 39 KB HTML Document 20051110.htm d0 KB HTML Document 20051111.htm 39 KB HTML Document 20051112.htm d0 KB HTML Document 20051113.htm d0 KB HTML Document ~l 2005111 d.htm d0 KB HTML Document 20051115.htm 40 KB HTML Document f~ 20051116.htm 40 KB HTML Document ~] 20051117.htm 40 KB HTML Document ~] 20051118.htm d0 KB HTML Document 20051119.htm d0 KB HTML Document ~] 20051120.htm d0 KB HTML Document .~] 20051121.htm d0 KB HTML Document 20051122.htm d0 KB HTML Document 20051123.htm d0 KB HTML Document ~] 20051124.htm 40 KB HTML Document 20051125.htm 41 KB HTML Document 20051126.htm d0 K8 HTML Document 20051127.htm 41 KB HTML Document 20051128.htm 41 KB HTML Document ~] 20051129.Mtm 40 KB HTML Document ~] 20051130.htm 40 KB HTML Document 20051201.htm 40 KB HTML Document ~] 20051202.htm 40 KB HTML Document ~] 200512D3.htm 41 KB HTML Document ~] 20051204.htm 40 KB HTML Document Precision Energy Data J 11.7_mainfinal.las r~ FINAL_KBU 11-7 TD_MFT_all.dpk rs FINAL_KBU 11-7 TD_SQUAD_plotted.dpk e~ FINAL_KBU 11-7 TD_SQUAD_raw.dpk ® FINAL_KBUl l-7_AIS.tif ®FINAL_KBU11-7_CSS.tif ~FINAL_KBU11.7_MFT SUMMARY.csv c1 FINAL_KBUII-7_MFT_all.dpk Q FINAL_KBU11.7_MFT1.tif ®FINAL_K8U11-7 MFT2.tif ®FINAL_KBUtI-7_MFT3.tif FINAL_KBUI1.7_MFT4.tit FINAL_KBU11.7_MFT5.tif ®FINAL_KBU11-7_PNS.tif ~~ FINAL_KBUII.7_SQUAD_plotted.dpk r~ FINAL_KBU11.7_SQUAD_raw.dpk ®FINAL_KBU11.7 TVDAIS.tiF ®FINAL_KBU11.7_VEC.tif ®FINAL_KBU11.7TD_AIS.ti( ®FINAL_KBU11.7TD CSS.tif ®FINAL_KBU11-7TD_MFT1.tiF ®FINAL_KBU11.7TD_MFT2.tif ® FINAL_KBU11-7TD_MFT3.tif FINAL_KBU11.7TD_MFT4.tif ®FINAL_KBU11.7TD_PNS.tA ®FINAI KBU11.7TD_TVDAIS.trf ® FINAI.,_KBU11-7TD_VEC.tiI '~ KBUt t •7 TD_MFT FINAL SUMMARY.csv ICI td11-7_mainfinal.las 2,128 KB LAS File 8,815 KB DPK File 880 KB DPK File 2,293 KB 1,453 KB 1,227 KB 9 KB 9,044 KB 1,213 KB 1,013 KB 1,066 KB 911 KB 497 KB 1,349 KB 1,201 KB 3,124 KB 1,41 d KB 1,536 KB 1,004 KB 935 KB 1,028 KB 1,037 KB 1,146 KB 908 KB 1,059 KB 1,014 K8 1,113 KB 7 KB 1,383 KB 11 !1 DI2005 10:32 AM 11!11!2005 6:31 AM 11!1212005 9:01 AM 11113!2005 9:33 AM 11 !1 dl2005 9:15 AM 11115/2005 8:d1 AM 11 /16!2005 12:17 PM 11117!2005 7:01 AM 11118!2005 9:20 AM 11 !19!2005 7:10 AM 11120/2005 6:03 AM 11 /21 !2005 10:04 AM 11122/2005 9:45 AM 11 !23!2005 9:07 AM 11 !24!2005 9: d0 AM 11 /25!2005 9:50 AM 11 /26!2005 7:31 AM 11/27/2005 6:05 AM 11 /28/2005 6:07 AM 11 !29!2005 9:20 AM 11 !30/20D5 7:43 AM 12/112005 9:07 AM 12/212005 8:07 AM 12!3!2005 8:59 AM 12!3/2005 10:25 PM 12!3!2005 10:44 PM DPK File Microsoft Office Document Imaging File Microsoft Office Document Imaging File Microsoft Office Excel Comma Separated Values File DPK File Microsoft Office Document Imaging File Microsoft Office Document Imaging File Microsoft Office Document Imaging Fie Microsoft Office Document Imaging File Microsoft Office Document Imaging File Microsoft Office Document Imaging File DPK Foe DPK File Microsoft Office Document Imaging File Microsoft Office Document Imaging File Microsoft Office Document Imaging File Microsoft Office Document Imaging Fde Microsoft Office Document Imaging File Microsoft Office Document Imaging File Microsoft Office Document Imaging File Microsoft Office Document Imaging Fae Microsoft Office Document Imaging Frle Microsoft Office Document Imaging File Microsoft Office Document Imaging File Microsoft Office Excel Comma Separated Values File LAS File Files Currently an the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently an the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... Files Currently on the... 11 /21 /2005 1 0: D5 PM 12/1/2005 9:21 PM 11 !3012005 5:07 AM 11 /30/2005 5:07 AM 12/3/2005 6:29 PM 12!312005 6:31 PM 12/3/2005 6:25 PM 12/3/2005 6:2d PM 12/3/2005 6:19 PM 12/3/2005 6:20 PM 12/3/2005 6:21 PM 12/3/2005 6:22 PM 12/3/2005 6:23 PM 12/3/2005 6:32 PM 11 /22/2005 1 2:43 AM 111221200512:43 AM 12/312005 6:33 PM 12/3/2005 6:34 PM 12/13/2005 3:41 PM 12/13/2005 3:42 PM 12!13/2005 3:46 PM 12/13/2005 3:47PM 1 2/1 3/2005 3:4B PM 12/13!2005 3:48 PM 12/13/2005 3:42 PM 12/13/2005 3:43 PM 12/13!2005 3:43 PM 12!112005 9:25 PM 11 /29/200511:50 PM ~~~ DATA SUBMITTAL COMPLIANCE REPORT 5/12/2008 Permit to Drill 2051650 Well Name/No. KENAI BELUGA UNIT 11-7 Operator MARATHON OIL CO API No. 50-133-20556-00-00 MD 7900 TVD 7619 Completion Date 1/6/2006 Completion Status 1-GAS Current Status 1-GAS UIC Y REQUIRED INFORMATION Mud Log No Samples No DATA INFORMATION Types Electric or Other Logs Run: SP/GR-IEL-Density/Neutron-Sonic-Single Arm Caliper. MFTs Well Log Information: Log/ Electr (data taken from Logs Portion of Master Well Data Maint Data Digital Dataset Log Log Run Interval OH / Type Med/Frmt Number Name Scale Media No Start Stop CH Received Comments Well Cores/Samples Information: ' Sample Interval Set Name Start Stop Sent Received Number Com is ~ Core Chips 5080 5254 1190 ADDITIONAL INFORMATION Well Cored? ~j/ N Daily History Received? ~'J N Chips Received? ~/ N Formation Tops ~ N Analysis Y Received? Comments: Compliance Reviewed By: _ Directional Survey Yes ~ ~ ~~ p ~ ~~ Date: Okland, Howard D (DOA From: Okland, Howard D (DOA) Sent: Monday, May 12, 2008 8:58 AM To: 'Zeman, Kayneil J.'; 'McElmoyl, Courtney' Subject: KBU 11-7 Data Folks, We do not have record of any Open Hole logging data being submitted for: KBU 11-7 API 50 133 20556 00 00 Permit to drill 205-165 Please submit: OH logs in digital format OH logs in graphics format (in leu of sepias/mylars) OH logs Blue lines (still required by regulations) Directional survey in digital format. Additionally: The core chips have been submitted (Thank You), but a core analysis (P & P) and a core description has not been submitted. This is a released well. Your attention to this is greatly appreciated. Howard PS Overcast and Rain today after a sunny weekend. 1 • • ~~ N I ~ Laboratories, Inc. (832) 237-4000 Fax: (832) 237-4700 8845 Fallbrook Drive, Houston, Texas 77064 Release Form Date: 11 /3/2006 OMNI Employee Authorizing Release: Mike Walker/ Sana Akhtar Means Of Delivery: FedEx OMNI File Number: H-34336 Well Information: Marathon Oil Company KBU 11-7 Well Kenai Gas Pool Field Kenai Peninsula Borough, Alaska Material Released: 84 Alaska Samples (Core 1); 91 Alaska Samples (Core 2) Individual Requesting Release: Jennifer Enos -Marathon Oil Company Individual Authorizing Release: Mike Walker -Omni Labs Purpose Of Release: Per Client Request Address Material Was Delivered To: State of Alaska Oil & Gas Phone: 832-237-4000 333 7th Ave. Anchorage, AK 99503 Delivery Accepted By: V Date: ~, ~r., o~~ f~ Printed Name: ~ V3 0. r`2 ©~-~ ~~~~D a~~ -«~ • "4~MN1 Marathon Oil Company KBU 11-7 Well Kenai Gas Pool Field Kenai Peninsula Borough, Alaska File: H-34336 Date: 11-03-06 Alaska Sam les Requested Actual STATE OF ALASKA Driller Date Sample Sample CHIP SAMPLES Name Drilled Tube Core Sample Depth, Depth, No. No. No. feet feet 1 1-1 C ~ 5080.00 1 1-2C ~ 5081.00 1 1-3C 5082.00 1 1-4C 5083.00 1 1-5C ~ 5084.00 1 1-tiC ~ 5085.00 1 1-7C / 5086.00 1 1-8C '~ 5087.00 1 1-9C ° 5088.00 1 1-10C ~ 5089.00 1 1-11C 5090.00 1 1-12C 5091.00 1 1-13C 5092.00 1 1-14C 5093.00 1 1-15C 5094.00 1 1-16C ~ 5095.00 1 1-17C ~ 5096.00 1 1-18C 5097.00 1 1-19C 5098.00 1 1-20C ~ 5099.00 1 1-21 C / 5100.00 1 1-22C ~ 5101.00 1 1-23C ~ 5102.00 1 1-24C ~ 5103.00 1 1-25C 5104.00 1 1-26C ~ 5105.00 1 1-27C 5106.00 1 1-28C 5107.00 1 1-29C 5108.00 1 1-30C ~ 5109.00 1 1-31 C ~ 5110.00 1 1-32C +~ 5111.00 1 1-33C ~ 5112.00 1 1-34C 5113.00 1 1-35C 5114.00 1 1-36C r 5115.00 1 1-37C 5116.00 1 1-38C / 5117.00 1 1-39C 5118.00 1 1-40C 5119.00 • • 1 1-41 C E 5120.00 1 1-42C, 5121.00 1 1-43C ~ 5122.00 1 1-44C ~ 5123.00 1 1-45C ~ 5124.00 1 1-46C ~ 5125.00 1 1-47C ~ 5126.00 1 1-48C r 5127.00 1 1-49C 5128.00 1 1-50C f 5129.00 1 1-51C.~ 5130.00 1 1-52C ~ 5131.00 1 1-53C 5132.00 1 1-54C ~ 5133.00 1 1-55C 5134.00 1 1-56C ~ 5135.00 1 1-57C ~ 5136.00 1 1-58C - 5137.00 1 1-59C 5138.00 1 1-60C 5139.00 1 1-61 C 5140.00 1 1-62C ~ 5141.00 1 1-63C ~ 5142.00 1 1-64C~ 5143.00 1 1-65C / 5144.00 1 1-66C 5145.00 1 1-67C ~ 5146.00 1 1-68C 5147.00 1 1-69C ~ 5148.00 1 1-70C / 5149.00 1 1-71 C ~ 5150.00 1 1-72C ~ 5151.00 1 1-73C ~ 5152.00 1 1-74C r 5153.00 1 1-75C 5154.00 1 1-76C 5155.00 1 1-77C 5156.00 1 1-78C 5157.00 1 1-79C~' 5158.00 1 1-80C ~ 5159.00 1 1-81C/ 5160.00 1 1-82C ~ 5161.00 1 1-83C~ 5162.00 1 1-84C 5163.00 • ~MNI leEO2to~MR M1~0. Marathon Oil Company KBU 11-7 Well Kenai Gas Pool Field Kenai Peninsula Borough, Alaska File: H-34336 Date: 11-03-06 Alaska Sam les Requested Actual STATE OF ALASKA Driller Date Sample Sample CHIP SAMPLES Name Drilled Tube Core Sample Depth, Depth, No. No. No. feet feet 2 2-1 C 5164.00 2 2-2C .~ 5165.00 2 2-3C .~ 5166.00 2 2-4C ~ 5167.00 2 2-5C ~ 5168.00 2 2-6C ~ 5169.00 2 2-7C ~ 5170.00 2 2-8C .~ 5171.00 2 2-9C / 5172.00 2 2-10C ~ 5173.00 2 2-11 C 5174.00 2 2-12C ~ 5175.00 2 2-13C ~ 5176.00 2 2-14C r 5177.00 2 2-15C -- 5178.00 2 2-16C 5179.00 2 2-17C ~ 5180.00 2 2-18C ~ 5181.00 2 2-19C~ 5182.00 2 2-20C ~ 5183.00 2 2-21 C / 5184.00 2 2-22C' 5185.00 2 2-23C ~ 5186.00 2 2-24C ~ 5187.00 2 2-25C ~ 5188.00 2 2-26C 5189.00 2 2-27C 5190.00 2 2-28C ' 5191.00 2 2-29C ~ 5192.00 2 2-30C ~ 5193.00 2 2-31 C 5194.00 2 2-32C 5195.00 2 2-33C v 5196.00 2 2-34C / 5197.00 2 2-35C ~ 5198.00 2 2-36C v 5199.00 2 2-37C 5200.00 2 2-38C w 5201.00 2 2-39C ~+ 5202.00 2 2-40C 5203.00 • s 2 2-41 C / 5204.00 2 2-42C,~ 5205.00 2 2-43C 5206.00 2 2-44C 5207.00 2 2-45C ~ 5208.00 2 2-46C 5209.00 2 2-47C ~ 5210.00 2 2-48C ~ 5211.00 2 2-49C ' 5212.00 2 2-50C 5213.00 2 2-51 C 5214.00 2 2-52C ~ 5215.00 2 2-53C r 5216.00 2 2-54C 5217.00 2 2-55C ~ 5218.00 2 2-56C ~ 5219.00 2 2-57C ~ 5220.00 2 2-58C ~ 5221.00 2 2-59C ~ 5222.00 2 2-60C r 5223.00 2 2-61 C ~ 5224.00 2 2-62C ~ 5225.00 2 2-63C ~ 5226.00 2 2-64C ~ 5227.00 2 2-65C 5228.00 2 2-66C 5229.00 2 2-67C 5230.00 2 2-68C '' 5231.00 2 2-69C .. 5232.00 2 2-70C r 5233.00 2 2-71 C 5234.00 2 2-72C i 5235.00 2 2-73C - 5236.00 2 2-74C 5237.00 2 2-75C 5238.00 2 2-76C 5239.00 2 2-77C ~ 5240.00 2 2-78C 5241.00 2 2-79C v 5242.00 2 2-80C ~ 5243.00 2 2-81C 5244.00 2 2-82C`~ 5245.00 2 2-83C / 5246.00 2 2-84C " 5247.00 2 2-85Cd 5248.00 2 2-86C 5249.00 2 2-87C 5250.00 2 2-88C ~ 5251.00 2 2-89C 5252.00 2 2-90C / 5253.00 2 2-91 C 5254.00 MEMORANDUM To: Jim Regg ~, ~ ~ ~i."7 P.L Supervisor ~-~:~>f 1€ >±ROltit: Jeff Jones Petroleum Inspector State of Alaska Alaska Oil and Gas Conservation Commission DATE: Thursday, May 2s, 2006 SUBJECT: Mechanical Integrity Tests MARATHON OIL CO 11-7 KENAI BELUGA UNIT 11-7 '~ '~ Src: Inspector ~~ ~J Reviewed By: P.I. Suprv ~ ~~-% NON-CONFIDENTIAL Comm Well Name: KENAI BELUGA UNIT 11-7 Insp Num: mitJJ060s241s3526 Rel Insp Num API Well Number s0-133-20ss6-00-00 Permit Number: 20s-165-0 Inspector Name• Jeff Jones Inspection Date: s/18/2006 Packer Depth Pretest Initial 15 Min. 30 Min. 45 Min. 60 Min. Well I1-~ 'Type Inj. ' N ; TVD ~ asos IA o ~ zzso zoso zoao j ~ p T 1 zosl6so ~TypeTest ~ sPT ~ Test psi uoo ~ OA I I ___ _ ~I -I- Interval wxxovx p~ r Tubing o ~ o o o NOteS 2 Year MIT cycle. 0.2 bbls s0/50 methanol pumped. Post coil & well head change. Unable to monitor OA; operator has since installed OA monitoring equipment. ~~ Thursday, May 2s, 2006 Page 1 of 1 M Marathon MARATHON Oil Company February 23, 2006 FEB ~ ~ ~d~6 Winton Aubert Alaska Oil & Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Reference: Completion Report 10-407 for Permit 205-165 Field: Kenai Gas Field /Beluga / Tyonek Well: KBU 11-7 Dear Mr. Aubert: i Alaska Business Unit Domestic Production P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/5646489 ~~ Alaska Dil & Gas Cons. Commission Anchorage Enclosed please find the Well Completion Report with associated attachments for Kenai Beluga Unit Well No. 11-7. This well has been completed cased hole with a 3.5" Excape monobore production string to surface. I apologize for the delay in getting this completion notice to you. Should you require further information, I can be reached at 713-232-9347 or 713-296-2730 or by email at JRThompson@MarathonOil.com. Sincerely, James R. Thompson Sr. Completions Engineer Enclosures: AOGCC Form 10-407 Directional Survey Wellbore Diagram Well Summary Report _ Page 1 of 3 _ ALASE~IL AND GAS CONSERVATION COMMIS~N ~1:_s~'~~~ WELL COMPLETION OR RECOMPLETION REPORT ANC~.;L,Q,G ;r:n~ 1a. Well Status: Oil^ GasO Plugged Abandoned^ 2onnc 2s.1os GINJ^ WINJ ^ WDSPL^ No. of Completions Suspended WAG^ 2onAC 2s.11o 1 Other 1b. Well Class: "- Developme t ~ „U,~ ~ I~rrr^ Service LrJg~a b.1 rati ra i 2. Operator Name: Marathon Oil Company 5. Date Comp., Susp., or Aband.: 1/6!2006 12. Permi~~~„p.~ill.~lumbe 205-165 3. Address: P. O. Box 3128, Houston, TX 77253 6. Date Spudded: November 10, 2005 13. API Number: 50-133-20556-00 4a. Location of Well (Governmental Section): Surface: 490' FSL, 1066' FWL, Sec. 6, T4N, R11W, S.M. 7. Date TD Reached: November 29, 2005 14. Well Name and Number: Kenai Beluga Unit 11-7 Top of Productive Horizon: 1042' FNL, 1127' FWL, Sec. 7, T4N, R11W, S.M. 8. KB Elevation (ft): 87' 15. Field/Pool(s): Kenai Gas Field Total Depth: 1045' FNL, 1160' FWL, Sec. 7, T4N, R11 W, S.M. 9. Plug Back Depth(MD+TVD): 7832' i 7551' Beluga/Upper Tyonek Pool 4b. Location of Well (State Base Plane Coordinates): Surface: x- 271,988.97 y- 2,362,537.28 Zone- 4 10. Total Depth (MD + TVD): 7900'/ 7619' 16. Property Designation: A-028142 TPI: x- 272,019.20 y- 2,361,004.16 Zone- 4 Total Depth: x- 272,053.24 y- 2,361,000.43 Zone- 4 11. Depth Where SSSV Set: N/A 17. Land Use Permit: 18. Directional Survey: Yes ~ No 19. Water Depth, if Offshore: N/A feet MSL 20. Thickness of Permafrost: NA 21. Logs Run: SP/GR-IEL-Density/Neutron-Sonic-Single Arm Caliper. MFTs 22. CASING, LINER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZ E CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 20" 131# X-52 0 128' 0 128' Driven NA NA 13 3/8 68# K-55 0 1717' 0 1680 16" 543 sks Type 1-Class G NA 9 5/8" 40# L-80 0 5579' 0 5299 12 1/4" 545 sks Class G NA 3 1/2" 9.3# L-80 0 7870' 0 7589 8 1/2" 1067 sks Class G 90000 23. Perforations open to Production (MD + TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) MD RKB TVD RKB 31/2" 7870' N/A Module 1 - 7773 - 7783' (Tyonek) 7492-7502 Module 2 - 7649 - 7659' (Tyonek) 7368-7378 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. Module 3 - 7579 - 7589' (Tyonek) 7298-7308 DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED Module 4 - 7437 - 7447' (Tyonek) 7157-7167 Module 1 - 7773 - 7783' BJLightning, 24004 Ibs prop, 20/40 Ottawa & Flex Sand Module 5 - 7353 - 7363' (Beluga) 7072-7082 Module 2 - 7649 - 7659' BJLightning, 22314 Ibs prop, 20/40 Ottawa 8 Flex Sand Module 6 - 7301 - 7311' (Beluga) 7020-7030 Module 3 - 7579 - 7589' BJLightning, 20979 Ibs prop, 20/40 Ottawa 8 Flex Sand Module 7 - 7190 - 7200' (Beluga) 6909-6919 Module 4 - 7437 - 7447' BJLightning, 22813 Ibs prop, 20/40 Ottawa & Flex Sand Module 8 - 7118 - 7128' (Beluga) 6837-6847 Module 5 - 7353 - 7363' BJLightning, 22453 Ibs prop, 20/40 Ottawa & Flex Sand Module 9 - 7001 - 7011' (Beluga) 6720-6730 Module 6 - 7301 - 7311' BJLightning, 23458 Ibs prop, 20/40 Ottawa 8 Fiex Sand Continued on Page 3 Continued on Page 3 26. PRODUCTION TEST Date First Production: January 6, 2006 Method of Operation (Flowing, gas lift, etc.): FIOWIn Date of Test: 1!13/2006 Hours Tested: 24 Production for Test Period Oil-Bbl: NA Gas-MCF: 2884 Water-Bbl: 171 Choke Size: 128/64 Gas-Oil Ratio: NA Flow Tubing Press. 815 Casing Press: 0 Calculated 24-Hour Rate ~ Oil-Bbl: NA Gas-MCF: 2884 Water-Bbl: 171 Oil Gravity -API (corr): NA 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). G ~ Submit core chips; if none, state "none". " I Lithology -interbedded gas charge o e I a d a Core chips submitted. ,~~~ scion KBU 11-7 _ _ .xis Form 10-407 Revised 12/2003 ~~~ ~ ~~ ,~ ~°+ ~~~~ 2I23I2006 3:35 PM ' f~ UED ON REVERSE ~ ` Page 2 of 3 28. GEOLOGIC MARKERS 29. FORMATION TESTS NAME MD TVD Include and briefly summarize test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". Zone Top MD Top TVD Pressure Middle Beluga 5629 5349 Tyonek 7778 7497 4105 Tyonek 7486 7205 Tyonek 7654 7373 4068 Tyonek 7582 7301 3350 Lower Beluga 7440 7159 3689 Lower Beluga 7355 7074 na Lower Beluga 7302 7021 na Lower Beluga 7160 6879 na Lower Beluga 7117 6836 na Lower Beluga 7000 6719 na Lower Beluga 6908 6627 2733 Lower Beluga 6817 6536 1902 Lower Beluga 6766 6485 na Lower Beluga 6656 6375 1933 Lower Beluga 6508 6227 na Lower Beluga 6420 6139 2070 Middle Beluga 6292 6011 2740 Middle Beluga 6210 5929 2331 Middle Beluga 6020 5739 2296 30. List of Attachments: Directional Survey, Wellbore Diagram, Well Operations Summary 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Printed Name: James R. Thompson Title: Senior Completions Engineer Signature: Phone: 713-296-2730 Date: 2/23/2006 INSTRUCTIONS General: is form is designed for submitting a complete and correct well completion report and log on atl types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". KBU 11-7 Alaska_Cmpl_10-407.x~s 2/23/2006 3:35 PM Kenai Beluga Unit 11-7 API:50-133-20556-00 Continued from Page 1 23. Perforations open to Production (MD +TVD of Top and Bottom Interval, Size and Number; if none, state "none"): MD RKB TVD RKB Module 10 - 6909 - 6919' (Beluga) 6628-6638 Module 11 - 6819 - 6829' (Beluga) 6538-6548 Module 12 - 6769 - 6779' (Beluga) 6488-6498 Module 13 - 6661 - 6671' (Beluga) 6380-6390 Module 14 - 6509 - 6519' (Beluga) 6228-6238 Module 15 - 6421 - 6431' (Beluga) 6140-6150 Module 16 - 6292 - 6302' (Beluga) 6011-6021 Module 17 - NA NA Module 18 - 6022 - 6032' (Beluga 5741-5751 Continued from Page 1 Page 3 of 3 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED Module 7 - 7190 - 7200' BJLightning, 22673 Ibs prop, 20/40 Ottawa & Flex Sand Module 8 - 7118 - 7128' BJLightning, 20000 Ibs prop, 20/40 Ottawa & Flex Sand Module 9 - 7001 - 7011' BJLightning, 24486 Ibs prop, 20/40 Ottawa & Flex Sand Module 10 - 6909 - 6919' BJLightning, 23257 Ibs prop, 20/40 Ottawa & Flex Sand Module 11 - 6819 - 6829' BJLightning, 22164 Ibs prop, 20/40 Ottawa & Flex Sand Module 12 - 6769 - 6779' BJLightning, 24235 Ibs prop, 20/40 Ottawa & Flex Sand Module 13 - 6661 - 6671' BJLightning, 43783 Ibs prop, 20/40 Ottawa & Flex Sand Module 14 - 6509 - 6519' BJLightning, 23787 Ibs prop, 20/40 Ottawa & Flex Sand Module 15 - 6421 - 6431' BJLightning, 24316 Ibs prop, 20/40 Ottawa & Flex Sand Module 16 - 6292 - 6302' BJLightning, 35662 Ibs prop, 20/40 Ottawa & Flex Sand Module 17 -Guns Malfuntioned (planned at 6211 - 6221') Did not Treat Module 18 - 6022 - 6032' BJLightning, 23623 Ibs prop, 20/40 Ottawa & Flex Sand KBU t t-7 Alaska_Cmpl_10-407.x1s 2/23/2006 3:35 PM MARATHON Oil Cor~any,Slot# KBU11-7 Pad 14-6, MARATHON Kenai Gas Field,Cook Inlet, Alaska (Kenai Penninsula) SURVEY LTSfING Page 1 Wellbore: KBU11-7 Wellpath: MWD <0-7900> Date Printed: 30-Nov-2005 ~L~ MUfGHES ~~v i r.~ Well Name Government ID Last Revised KBU11-7 25-Oct-2005 Slot Name Grid Northin Grid Eastin Latitude Lon itude North East Slot# KBU11-7 2362537.2800 ~ 271988.9700 N60 27 38.8756 W151 15 47.5843 581.34N 984.81E Installation Name Eastin Northin Coord S tem Name North AI' nment Pad 14-6 270993.1910 2361975.0460 AK-4 on NORTH AMERICAN DATUM 1927 datum True i Field '~ Name Eastin Northin Coord S stem Name North AI' nment Kenai Gas Field 270993.1910 2361975.0460 AK-4 on NORTH AMERICAN DATUM 1927 datum True All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Glacier 1 87.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 177.79 degrees Bottom hole distance is 1538.26 Feet on azimuth 176.51 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Cor~any,Slot# KBU11-7 M Pad 14-6, MARATHON Kenai Gas Field,Cook Inlet, Alaska (Kenai Penninsula) SURVEY L15TING Page 2 Wellbore: KBU11-7 Wellpath: MWD <0-7900> Date Printed: 30-Nov-2005 I\TE(j Well ath Grid Re ort MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg de /100ft Vertical Section ft Easting Northing ~ 0.00 0.00 0.00 0.00 O.OON 0.00E 0.00 0.00 271988.97 2362537.28 I 135.00 0.60 334.90 ! 135.00 0.64N 0.30W 0.44 -0.65 271988.68 2362537.93 196.00 0.70 311.70 ' 195.99 1.18N 0.71 W 0.46 -1.20 271988.28 2362538.47 257.00 0.80 297.60 256.99 1.62N 1.37W 0.34 -1.67 271987.63 2362538.93 318.00 1.00 297.40 ~ 317.98 2.06N 2.22W 0.33 -2.15 i 271986.79 2362539.39 378.00 1.00 296.30 377.97 2.54N 3.15W 0.03 -2.66 ~ 271985.87 2362539.88 438.00 1.30 295.20 ~ 437.96 3.06N 4.24W 0.50 -3.22 ~ 271984.79 2362540.42 499.00 1.20 238.90 498.95 3.02N 5.41 W 1.94 -3.23 ~I 271983.62 2362540.41 560.00 2.90 193.50 559.91 1.19N 6.32W 3.65 -1.44 271982.68 2362538.59 620.00 5.00 188.40 619.76 2.87S 7.05W 3.55 2.59 271981.86 2362534.55 681.00 6.90 191.80 680.43 9.09S 8.19W 3.17 8.76 ~ 271980.60 2362528.35 742.00 8.10 195.00 740.91 16.82S 10.06W 2.08 16.42 271978.59 2362520.65 804.00 9.00 201.70 802.22 25.55S 12.98W 2.16 25.03 I 271975.50 2362511.98 867.00 9.60 197.90 864.39 35.13S 16.41 W 1.36 34.47 I 271971.88 2362502.48 931.00 10.10 179.50 927.47 45.82S 18.01 W 4.96 45.09 271970.09 2362491.82 994.00 10.90 173.40 989.41 57.26S 17.27W 2.17 56.55 271970.60 2362480.36 1057.00 11.50 174.60 ( 1051.21 69.43S 16.OOW 1.02 68.76 271971.64 2362468.17 1120.00 12.00 ~ 174.90 1112.89 82.21 S 14.82W 0.80 81.57 271972.57 2362455.38 ~ 1183.00 13.20. 175.90 1174.37 95.91S 13.73W 1.94 95.30 271973.41 2362441.66 1247.00 15.20 175.90 1236.42 111.56S 12.61 W 3.13 110.99 ~ 271974.23 2362425.98 1310.00 16.70 I 176.30 1296.99 128.84S 11.43W 2.39 128.30 i 271975.07 2362408.69 ~ 1373.00 17.70 176.60 1357.17 147.43S 10.28W 1.59 146.92 I. 271975.87 2362390.08 1436.00 18.50 ( 175.00 1417.05 166.95S 8.84W 1.49 166.48 271976.93 2362370.54 1499.00 19.50 174.20 1476.62 187.37S 6.91 W 1.64 186.96 271978.47 2362350.09 1562.00 20.70 173.60 1535.78 208.89S 4.60W 1.93 208.56 ! 271980.36 2362328.52 1625.00 21.90 174.40 1594.48 231.65S 2.21 W 1.96 231.39 I 271982:31 2362305.72 1672.00 22.60 174.00 1637.98 249.36S 0.41 W 1.52 249.15 271983.77 2362287.99 1754.00 22.60 ~ 174.70 1713.68 280.71S 2.69E 0.33 280.61 271986.27 2362256.58 1818.00 22.70 ~ 176.60 1772.74 305.29S 4.55E 1.15 305.24 271987.67 2362231.97 1944.00 22.90 176.80 1888.90 354.03S 7.37E 0.17 354.05 271989.54 2362183.19 2071.00 22.90 177.30 2005.89 403.39S 9.91E 0.15 403.47 271991.14 2362133.80 2196.00 23.20 178.20 2120.91 ~ 452.29S 11.83E 0.37 452.41 271992.12 2362084.87 2323.00 23.90 178.80 2237.33 ~ 503.01 S 13.15E 0.58 503.15 271992.47 2362034.13 2449.00 ~ 25.00 178.80 2352.03 ~ 555.15S ~ 14.24E 0.87 ~ 555.29 271992.56 2361981.98 2574.00 ~ 24.80 178.40 2465.41 607.77S 15.53E 0.21 607.91 271992.84 ~ 2361929.35 2700.00 24.70 177.80 2579.84 I 660.49S ! 17.28E 0.21 I 660.66 271993.58 i 2361876.61 2827.00 ~ 24.50 178.50 2695.31 713.33S 18.99E 0.28 ~ 713.53 271994.27 ~ 2361823.75 2955.00 24.60 178.60 2811.74 766.49S 20.33E 0.08 766.71 271994.60 ~ 2361770.57 3080.00 24.10 178.30 2925.62 818.01S 21.73E 0.41 818.24 271995.00. 2361719.04 3207.00 24.00 177.50 3041.60 869.73S 23.62E 0.27 870.00 271995.90 2361667.29 ~ 3335.00 23.90 177.30 3158.57 921.64S 25.98E 0.10 921.95 271997.26 2361615.35 3461.00 24.00 178.00 3273.73 972.74S 28.07E 0.24 973.10 ~ 271998.38 2361564.22 I 3586.00 23.80 177.40 3388.01 1023.35S 30.11E 0.25 1023.74 ~ 271999.44 2361513.59 3711.00 23.70 177.80 3502.42 1073.64S 32.21E 0.15 1074.09 i 272000.58 2361463.26 3836.00 23.50 177.50 3616.97 1123.65S 34.27E 0.19 1124.13 ! 272001.68 2361413.23 3963.00 23.10 176.70 3733.61 1173.81S 36.80E . 0.40 1174.36 272003.25 2361363.03 4090.00 23.00 177.30 3850.47 1223.47S 39.41E 0.20 1224.08 272004.90 2361313.33 I 4153.00 22.90 176.90 3908.49 1248.OOS 40.65E 0.29 1248.64 272005.67 2361288.78 4216.00 22.10 177.30 3966.69 ( 1272.08S 41.87E 1.29 I 1272.75 272006.43 ~ 2361264.68 4280.00 20.50 177.20 4026.32 1295.30S 42.98E 2.50 I, 1296.00 272007.10 2361241.45 4342.00 18.90 178.60 4084.68 1316.19S i 43.76E 2.69 ~ 1316.89 272007.48 I 2361220.55 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Glacier 1 87.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 177.79 degrees Bottom hole distance is 1538.26 Feet on azimuth 176.51 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Corr any,Slot# KBU11-7 M Pad 14-6, MARATHON Kenai Gas Field,Cook Inlet, Alaska (Kenai Penninsula) SURVEY Li'STING Page 3 Wellbore: KBU11-7 Wellpath: MWD <0-7900> Date Printed: 30-Nov-2005 BAKER • NU6F~5 1\TEQ Well ath Grid Re ort MD[ftJ Inc[deg] Azi[deg] ND[ft] North[ft] East[ftJ Dogleg de 100ft Vertical Section ft Easting Northing 4403. 00 17.60 178.00 4142. 61 1335 .28S 44. 32E 2.15 1336. 00 272007 .67 2361201. 45 4466. 00 17.00 177.00 4202. 77 1354 .OOS 45. 14E 1.06 1354. 73 272008 .13 2361182. 73 4529. 00 16.90 176.60 4263. 03 1372 .33S 46. 16E 0.24 1373. 09 272008 .80 2361164. 37 4595. 00 15.90 178.50 4326. 34 1390 .95S 46. 97E 1.72 1391. 72 272009 .25 2361145. 75 4656. 00 14.00 178.10 4385. 27 I 1406 .68S 47. 43E 3.12 1407. 46 272009 .41 2361130. 01 4720. 00 12.10 175.30 4447. 62 ~ 1421 .10S 48. 24E 3.13 1421. 90 272009 .94 2361115. 58 4783. 00 ~ 10.40 172.80 4509. 41 i 1433 .33S 49. 49E 2.81 ~ 1434. 17 272010 .96 2361103. 33 4846. 00 ~ 9.80 171.30 4571. 43 1444 .27S 51. 02E 1.04 1445. 16 272012 .27 i 2361092. 36 4910. 00 9.70 ~ 172.10 4634. 51 1454 .99S 52. 58E 0.26 ~ 1455. 94 272013 .63 ~ 2361081. 61 4971. 00 I 8.80 172.20 I 4694. 71 1464 .70S I 53. 92E 1.48 1465. 69 I 272014 .79 I 2361071. 87 ~ 5033. 00 ( 8.10 174.40 ~ 4756. 04 1473 .75S 54. 99E 1.24 ~ 1474. 77 '; 272015 .68 2361062. 81 5099. 00 8.10 173.60 4821. 38 1483 .OOS 55. 96E 0.17 1484. 05 ~ 272016 .48 2361053. 54 5160. 00 8.40 ~ 174.60 4881. 75 1491 .70S 56. 86E I 0.55 1492. 79 i 272017 .21 2361044. 82 5223. 00 8.40 173.10 4944. 07 1500 .85S 57. 85E 0.35 1501. 97 272018 .02 2361035. 66 5285. 00 7.40 171.50 5005. 48 1509 .30S 58. 98E I 1.65 1510. 45 272018 .99 2361027. 19 5350. 00 5.60 174.90 5070. 06 1516 .60S 59. 88E ~ 2.83 1517. 78 272019 .75 2361019. 88 5412. 00 3.60 179.30 5131. 86 1521 .56S 60. 17E ~ 3.27 1522. 75 272019 .95 2361014. 91 5475. 00 2.80 183.40 5194. 76 1525 .07S 60. 11E 1.32 1526. 26 272019 .81 2361011. 40 5529. 00 2.80 184.20 5248. 70 1527 .70S 59. 93E i 0.07 1528. 88 272019 .59 2361008. 77 5631. 00 2.40 183.10 5350. 59 1532 .32S 59. 63E 0.40 1533. 48 272019 .20 2361004. 16 5695. 00 2.40 180.90 5414. 54 1535 .OOS 59. 54E . 0.14 1536. 15 272019 .06 2361001. 49 5758. 00 1.20 166.30 5477. 51 1536 .96S 59. 68E 2.02 1538. 12 272019 .15 2360999. 52 5821. 00 0.70 82.00 5540. 50 1537 .55S 60. 21E 2.11 1538. 73 272019 .68 2360998. 93 5948. 00 0.60 110.70 5667. 49 1537 .67S 61. 60E 0.26 1538. 91 272021 .07 2360998. 77 6074. 00 0.50 81.80 5793. 49 1537 .83S 62. 77E 0.23 1539. 11 272022 .23 2360998.60 6199. 00 0.70 86.70 5918. 48 1537 .71S 64. 07E 0.17 1539. 03 272023 .53 2360998. 69 6323. 00 0.70 100.30 6042.47 1537 .80S 65. 57E 0.13 1539. 18 272025 .03 2360998. 57 6450. 00 1.00 100.00 6169. 46 1538 .13S 67. 42E 0.24 1539. 59 272026 .88 2360998.21 6513. 00 1.00 95.80 6232. 45 1538 .28S 68. 51E 0.12 1539. 78 272027 .96 2360998. 03 6640. 00 0.60 78.70 6359.43 1538 .26S 70. 27E 0.36 1539. 83 272029 .72 2360998. 02 6766. 00 1.00 91.80 6485.42 1538 .17S 72. 01E 0.35 1539. 80 272031 .46 2360998. 08 ~ 6892. 00 1.00 94.10 6611. 40 1538 .28S 74. 21E 0.03 1540. 00 272033 .66 2360997. 92 7018. 00 1.00 90.40 6737. 38 1538 .37S 76. 41E 0.05 1540. 17 272035 .85 2360997. 80 7144. 00 1.20 65.80 6863. 36 1537 .83S 78. 71E 0.40 1539. 73 272038 .16 2360998.29 7269. 00 1.00 76.40 6988. 34 1537 .04S 80. 96E 0.23 1539. 02 272040 .43 2360999. 03 ~ 7396. 00 1.30 77.30 7115. 31 1536 .46S 83. 44E 0.24 1538. 54 272042 .93 2360999. 56 7522. 00 1.20 89.00 7241. 28 1536 .13S 86. 16E 0.22 1538. 31 272045 .64 2360999. 85 7646. 00 1.10 88.20 7365. 26 1536 .07S 88. 65E 0.08 1538. 34 272048 .13 2360999. 86 7775. 00 1.00 83.60 7494. 23 1535 .90S 91. 00E 0.10 1538. 27 272050 .49 2360999.98 7852. 00 1.40 78.40 7571. 22 1535 .64S 92. 59E 0.54 1538. 07 272052 .09 2361000. 21 7900. 00 1.40 78.40 7619. 20 1535 .40S 93. 74E 0.00 1537. 88 272053 .24 2361000. 43 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Glacier 1 87.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 177.79 degrees Bottom hole distance is 1538.26 Feet on azimuth 176.51 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Corr any,Slot# KBU11-7 M Pad 14-6, MARATHON Kenai Gas Field,Cook Inlet, Alaska (Kenai Penninsula) Comments SURVEY L15fING Page 4 Wellbore: KBU11-7 Wellpath: MWD <0-7900> Date Printed: 30-Nov-2005 BAKER•^ Ih1t161#S I\TEQ Hole Sections Diameter in Start MD ft Start ND ft Start North ft Start East ft End MD ft End ND ft End Start Wellbore North ft East ft 16.000 107.00 107.00 ~ 0.40N 0.19W 1725.00 1686.91 269.62S I 1.63E ~ KBU11-7 121/4 1725.00 1686.91 269.62S 1.63E 5585.00 5304.64 1530.33S 59.75E I KBU11-7 81/2 5585.00 5304.64 1530.33S 59.75E 7900.00 ~ 7619.20 1535.40S 93.74E KBU11-7 Casin s Name Top MD ft Top ND ft Top North ft Top East ft Shoe MD ft Shce ND ft Shce North ft Shoe East ft Wellbore 20" Conductor 0.00 ! 0.00 O.OON ~ 0.00E 107.00 107.00 0.40N 0.19W KBU11-7 13 3/8" Surface casin 0.00 i I 0.00 O.OON i 0.00E 1717.00 1679.52 266.56S 1.34E KBU11-7 9 5/8" Intermediat casin 0.00 0.00 O.OON 0.00E ~ 5579.00 5298.64 1530.06S ~ 59.77E KBU11-7 3 1/2" Liner 0.00 0.00 O.OON 0.00E 7900.00 I 7619.20 1535.40S 93.74E KBU11-7 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Glacier 1 87.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 177.79 degrees Bottom hole distance is 1538.26 Feet on azimuth 176.51 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated ~~,~ MA THON Oil Com ny ~GH~ ~I LOCatIOn: FI@Id: ook Inlet, Alaska (Kenai Penninsula) Kenai Gas Field SIOt: Well: t# KBU11-7 j KBU11-7 ~l\1~'EQ Installation: Pad 146 Wellbore: KBU11-~ MARATHQN ~ -~ o -400 N I I U 0 ~ ~ ~20" Conductor - 0.48 Inc, 107.00 Md, 107.00 ND, -0.41 VS It7 U ~ 400 800 1200 1600 \ ~ 13 3I8' Surface casing - 22601rc, 1717.00 Md, 1679.52 ND, 266.41 VS ~i 2000 2400 Scale 1 cm = 50 ~_ West (feet) : East (feet) a -300 -200 -100 0 100 200 300 ,nassw,.~w :zm.,~.,nrmw,,enn.w.zce~s.~nE 4 WELL DATA lot e e I e Wallpath fl796509 P7tlE051 siw lmuii.~ $IM4'KBUtt-] imuit-~ F6U~1-7 K6Utv7 KpUtt-7 Vert L+wo 07900+ K6U~1-]vsrl 2600 Created by : Planner Date plotted : 30-Nov-2005 yd Plot reference is KBU11-7 . ...i 3200 Ref vrellpath is MWD <0-7900>. t Coordinates are in feet reference Slot# KBU11-7. Q. True Ver9cel Dephs are reference Rig Datum. ~ Measured Depths are reference Rig Datum. Q 3600 Rig Datum: Glacier 1 Rig Datum to mean sea level: 87.00 ft. ~ Plot North is aligned to TRUE North. V_ ~ 4000 ~ 4400 L I"" V 4600 I 5200 9 ' ImermeNate easMg - 2.601nc, 5579.00 Md, 5296.64 ND, 1531.22 VS~ KBU11-7 - M/Beluga - 10/25/05 5600 6000 6400 6800 7200 3 t2' Liner - t 401nc, ]900.00 htd KBU11-7 - M/Beluga - 10/25/05 KBU11-7 - TD - 10/25/05 7600 ~ 3 1/2" Liner - 1.40 Inc, 7900.00 Md, 7619.20 ND, 1537.88 VS KBU11-7 - TD - 10/25/05 Keu11-7 8000 Scale 1 cm = 200 ft ~i ~- I -400 0 400 800 1200 1600 2000 Vertical Section (feet) -> Azimuth 177.79 with reference 0.00 N, 0.00 E from SIotN KBU11-7 100 0 -100 -200 -300 -400 -500 -600 -700 n -800 C r~ -900 tD v -1000 -1100 -1200 -1300 -1400 -1500 -1600 n v m -1700 I I -1800 cn O API: 50-133-20556-00 RT-GL: 21.00' RT-THF: 21.70' 490' FSL, 1066' FWL, Sec. 6, T4N, R11W, S.M. Tree cxn = 4-3/4" Otis TOC (est.) - 500' above 9-5/8" shoe Drive Pipe: 20", 131 ppf, X-52 to 128' Surface Casing: 13-3/8", 68 ppf, K-55, BTC @ 1717' Cmt w/ 238 bbls of Type 1 at 12.0 PP9~ Int. Casing: 9-5/8", 40 ppf, L-80, BTC @ 5579' Cmt w/ lead of 297 sx of Class G @ 12.5 ppg and tail of 248 sx Class G @ 13.5 PP9 Prod. Tubing: 3-1/2", 9.3 ppf, L-80, EUE 8rd with 6.25" OD control line protectors to 7870' Cmt w/ 1067 sx of class G at 15.8 ppg - 18 Excape modules placed -Green control line fired module 1 -Yellow control line fired modules 2 thru 10 - Red contol line fired modules 11 thru 18 -Ceramic flapper valves below each module except for module 1 Module 1 - 7773 - 7783' (Tyonek) Module 2 - 7649 - 7659' (Tyonek) Module 3 - 7579 - 7589' (Tyonek) Module 4 - 7437 - 7447' (Tyonek) Module 5 - 7353 - 7363' (Beluga) .Module 6 - 7301 - 7311' (Beluga) Module 7 - 7190 - 7200' (Beluga) ,Module 8 - 7118 - 7128' (Beluga) Module 9 - 7001 - 7011' (Beluga) Module 10 - 6909 - 6919' (Beluga) Module 11 - 6819 - 6829' (Beluga) Module 12 - 6769 - 6779' (Beluga) Module 13 - 6661 - 6671' (Beluga) Module 14 - 6509 - 6519' (Beluga) Module 15 - 6421 - 6431' (Beluga) Module 16 - 6292 - 6302' (Beluga) Module 17 - 6211 - 6221' (Beluga) Module 18 - 6022 - 6032' (Beluga Well Name & Number: KBU 11-7 Lease: Kenai Gas Field County or Parish: Kenai State/Prov. Alaska Country: USA Perforations (MD) See Above (TVD) Angle/Perfs Angle @ KOP and Depth BHP: BHT: Completion Fluid: 6% KCL Dated Completed: Prepared By: J. R. Thompson Last Revison Date: 12/13/2005 J ~ M KBU 11 ~ / MARAT110N TD -7900' PBTD - 7832' Marathon Oil Company Legai Well Name: Common Well Name: iEvenf Date ~ Event Report Date ,From - To 11/1/2005 Event 11 /2!2005 08:00 - 18:00 18:00 - 00:00 Page 1 of 11 Operations Summary Report -Per Well KENAI BELUGA UNIT 11-7 KENAI BELUGA UNIT 11-7 Spud Date: 11/10/2005 Hours Code Sub phase ,Event Type --/-- Objective Code SideTrack- --/-- Description of Operations 10.00 MOB RIG_ MIRU 6.00 RURD RIG MIRU 11/10/2005 06:00 - 12:00 6.00 NUND BOPE SURDRL 12:00 - 06:00 18.00 RURD RIG MIRU 11/11/2005 06:00 - 12:00 6.00 RURD RIG MIRU 12:00 - 13:00 1.00 SAFETY MTG_ MIRU 13:00 - 17:30 4.50 RURD_ RIG_ MIRU 17:30 - 20:00 2.50 TEST_ BOPE SURDRL 20:00 - 21:30 1.50 PULD_ BHA_ SURDRL 21:30 - 00:30 3.00 DRILL_ ROT_ SURDRL 00:30 - 01:00 0.50 TRIP_ BHA_ SURDRL 01:00 - 03:30 2.50 PULD_ BHA_ SURDRL 03:30 - 04:30 1.00 DRILL_ ROT_ SURDRL 04:30 - 05:00 0.50 REPAIR RIG_ SURDRL 05:00 - 06:00 1.00 DRILL_ ROT_ SURDRL 11/12/2005 06:00 - 03:30 21.50 DRILL ROT SURDRL 03:30 - 04:30 1.00 CIRC_ MUD_ SURDRL 04:30 - 06:00 1.50 TRIP_ WIPR SURDRL 11/13/2005 06:00 - 06:30 0.50 TRIP_ BHA_ SURDRL 06:30 - 07:30 1.00 SERVIC RIG_ SURDRL 07:30 - 08:30 1.00 TRIP_ BHA_ SURDRL 08:30 - 09:00 0.50 TRIP_ DP_ SURDRL 09:00 - 12:00 3.00 CIRC_ MUD_ SURDRL 12:00 - 12:30 0.50 TRIP_ DP_ SURDRL 12:30 - 13:30 1.00 TRIP_ BHA_ SURDRL 13:30 - 16:00 2.50 RURD_ CSG_ SURCSG 16:00 - 19:30 3.50 RUN CSG SURCSG 19:30 - 21:00 1.50 CIRC_ MUD_ SURCSG 21:00 - 22:30 1.50 RURD_ CMT_ SURCSG 22:30 - 02:30 4.00 TRIP_ DP_ SURCSG 02:30 - 03:30 1.00 CIRC_ MUD_ SURCSG 03:30 - 05:00 1.50 PUMP CMT SURCSG ORIGINAL DRILLING --/-- Development-Gas OH --/-- PJSM, load out /move to KBU 11-7 Spot all loads /equip, RU on KBU 11-7 Release Glacier rig #1 to maintenance 0000 hrs 11/2/05 OH --/-- PJSM:Cut 20" conductor pipe, install 20" starting head, test same. N/U Diverter System. PJSM, Rig up Glacier 1 on KBU 11-7. Make all plumbing /elect conn's, change out valves, seats, liners all mud pumps. Cont RU while mix spud mud, prepare for spud. OH --/-- PJSM; Complete R/U Of T/D.Inspect Pins & Keepers On T!D Function Test and Route Hyd.Lines To T/D Weekly Safety Meeting. Complete RU top drive, test run same. Test BOPE / diverter system. Test successful, no re-tests. Witness waived Mr Lou Grimaldi AOGCC / Mr Lawler BLM MU BHA #1/bit #1, 16" drlg assy, RIH same Drill ahead 16" hole 44 - 186 ft Flow check, POH for dretnl assy Flow check, MU BHA #2 /bit #2, surface test dretnl assy. Drill ahead 16" hole dretnl, 186 - 210 ft. Rot 1 hr Repair top drive Drill ahead 16" hole dretnl, 210 - 254 ft. Rot 1 hr. No gain /loss, cuttings normal quantity /quality. OH --/-- Drill ahead 16" hole dretnl, 254 - 1725 ft (csg pt). No gain /loss, connections free, no drag /swab. Cuttings normal quantity /quality AST = 7.5 hrs, ROT 5 hrs Circ /cond fluids /well bore for wiper trip Flow check, POH wiper trip for 13 3/8 csg run. Depth 450 ft at 0600 hrs. No drag /swab /gain !loss. OH --/-- Cont. POH wiper trip to 20" shoe 128 ft. No drag /swab /gain /loss. Service rig Flow check, RIH BHA 799 ft. RIH 5" DP, precaution wash 60 ft to 1725 ft, 3 ft fill. Circ Hi Vis sweep, 10°I° addtnl returns, calculated 5 - 10% excess hole volume. PJSM, flow check, POH 5" dp to BHA at 799 ft. No drag /swab /gain /loss. Correct hole fill. Flow check, POH / lay do dretnl BHA / MWD PJSM, RU for 13 318 csg run. MU shoe track (Shoe, 2 jts 13 3/8 csg, float collar). Test floats, follow with 42 jts 13 318, 68#, K-55, BTC csg. Shoe 1717 ft, float 1634 ft. No fill, set rotary slips, flow check, Circ /cond fluids for cmt. PJSM, RU for inner string RIH 5" DP inner string, space out, sting in float collar, Flow check, circ 1 cond fluids while RU cmt equip. Cmt 13 3/8 csg: Pump 40 bbl spacer, test lines 2500 psi. Mix /pump 238 bbls cmt (type 1, 12 ppg, 2.47 yld). Drop plug, confirm plug dropped. Displace cmt with 27 bbls drlg fluid. 5 bbls 12 ppg cmt to surface. ICP = 95 psi / 4.5 bpm, FCP = 450 psi / 2.5 bpm. CIP 0500 hrs. 100% returns during job, no losses Printed: 2/23/2006 9:07:39 AM Marathon Oil Company Legal Well Common W Event Date Report Date Name: ell Name: - ~ Event From - To KE KE Hours ` NAI BEL NAI BEL - - ' Code UGA U UGA U - Sub Code NIT 11-7 NIT 11-7 _ ~ Phase 05:00 - 06:00 1.00 CIRC_ MUD_ SURCSG 11/14/2005 06:00 - 06:30 0.50 PUMP_ CMT_ SURCSG 06:30 - 07:30 1.00 TRIP_ DP_ SURCSG 07:30 - 08:30 1.00 PUMP_ CMT_ SURCSG 08:30 - 09:30 1.00 TRIP_ DP SURCSG 09:30 - 12:00 2.50 CLEAN_ RIG_ SURCSG 12:00 - 14:00 2.00 NUND BOPE SURCSG 14:00 - 17:00 3.00 NUND BOPE SURCSG 17:00 - 18:30 1.50 NUND WLHD SURCSG 18:30 - 21:30 3.00 NUND WLHD SURCSG 21:30 - 22:00 0.50 TEST_ WLHD SURCSG 22:00 - 05:30 7.50 NUND BOPE SURCSG 05:30 - 06:00 0.50 TEST_ BOPE SURCSG 11/15/2005 06:00 - 11:00 5.00 TEST_ BOPE SURCSG 11:00 - 13:00 2.00 TEST_ BOPE SURCSG 13:00 - 14:00 1.00 TEST_ BOPE SURCSG 14:00 - 17:30 3.50 PULD_ BHA ` SURCSG 17:30 - 01:30 8.00 PULD_ DP_ SURCSG 01:30 - 02:00 0.50 TRIP_ DP_ SURCSG 02:00 - 04:00 2.00 DRILL_ CMT_ SURCSG 04:00 - 04:30 0.50 DRILL_ ROT_ SURCSG 04:30 - 06:00 1.50 CIRC_ MUD_ SURCSG 11/16/2005 06:00 - 07:00 1.00 TEST_ LOT_ SURCSG 07:00 - 07:30 0.50 TEST_ LOT_ SURCSG 07:30 - 06:00 22.50 DRILL ROT IN1DRL Operations Summary Report -Per Well Page 2 of 11 Spud Date: 11/10/2005 i Event Type --/-- Objective SideTrack- --/ Description of Operations Sting out float collar, circ out excess cmt, no cmt. OH --/-- Cont. Circ String Clean @ 1550' PJSM; POH W 5 " DrillPipe T- 1190' Drain Conductor, Flush Out Stack, Mud Lines and Blow Down. Cont. POH W 5 " Drillpipe F- 1100' Clean Floor, UD Cement Equip. PJSM; N/D Diverter Line And Knife Valve. N/D Diverter, Cut Csg. Remove Diverter From Sub PJSM; Remove Starting Head, Make Final Cut On 13 3/8 Csg. Total Cut Off 27.17'. PJSM; Install multi Bowl Wellhead. Test Multi Bowl 1950 psi/ 10 Min. Test Successful PJSM; N/U BOPE and related components PJSM; Test BOPE, M/U Test Joint Set Test Plug OH --/-- PJSM; Test BOPE, all components, (spacer spool, choke flange, test hose fail test). Re-test -test successful. Choke flanges, spacer spool, test hose fail, re-test, test successful Perform time /volume /press test, accumulator. Test successful, no re-test. Pull test plug, set wear ring. PJSM, MU BHA #3 /bit #3, 12 1!4 dretnl assy, surface test same PJSM, PU 5" DP for drill out, stand bk in mast. RIH 5" DP, wash 60 ft to tag up at 1631 ft. Commence drill cmt / float egip (shoe 1716 ft). Dense cmt in shoe track, no voids. Drill ahead 12 1/4 hole 1725 - 1746 ft. Rot = .3 hrs. Flow check, displace wellbore fluids with 9 ppg Flo Pro. OH --/-- PJSM, perform FIT (TMD 1717, TVD 1687). Resulting in 550 psi / 15.2 EMW. Rig do floor, blow do lines. Drill ahead 12 1/4 hole dretnl, 1746 - 3641 ft. Connections free, normal torque /drag. Cuttings return normal quantity / quality. WOB 15, RPM 70, SPM 330, SPP 1680, Up 119, Dn 89, Rot 103, Ave ROP = 133 fph 11!17/2005 06:00-15:00 9.00 DRILL_ ROT IN1DRL 15:00 - 19:30 4.50 DRILL_ ROT IN1DRL 19:30 - 20:30 1.00 CIRC_ MUD_ IN1DRL 20:30 - 23:30 3.00 TRIP WIPR IN1DRL 23:30 - 00:30 00:30 - 01:00 01:00 - 01:30 01:30 - 03:30 03:30 - 04:00 04:00 - 06:00 11/18/2005 06:00 - 17:00 17:00 - 18:00 18:00 - 19:30 1.00 SERVIC RIG_ 0.50 REPAIR RIG_ 0.50 SLPCUT DLIN 2.00 TRIP_ WIPR 0.50 REAM_ OH_ 2.00 DRILL_ ROT_ 11.00 DRILL_ ROT_ 1.00 CIRC_ MUD_ 1.50 DRILL ROT 1N1 DRL IN1 DRL IN1DRL IN1DRL IN1DRL IN1 DRL IN1 DRL IN1 DRL IN1 DRL No acc / do time /spills /incidents OH --/-- Dir drill and survey F/3641' to 4207'(ART=6.6hrs). Dir drill and survey F/4207 to 4460'(ART=1.6hrs AST=1.3hrs). Circ. clean(CBUX2, 650gpm, 83RPM, 1500psi). Monitor well -losses 3 to 4BPH and pump dry job. POOH to shoe. Hole a little grabby -pulled as much as 35K over( took 2.5BPH during trip). PJSM. Service rig. C/O switch on TD link tilt. Slip and cut drlg line. RIH to 4331'. Wash down F/4331' to 4460' (tagged bridge @ 4350', no fill). Drill Fl4460' to 4585'. ART = 0.9hrs OH --/-- Dir drill and survey F/4585' to 5030'(ART=5.5hrs AST=3.3hrs). Circ. samples(650gpm, 1600psi, 80RPM). Drill F/5030' to 5080'(ART=1.2). Printed: 2/23/2006 9:07:39 AM Marathon Oil Company Operations Summary Report -Per Well Page 3 of 11 Legal Well Name: KENAI BELUGA UNIT 11-7 Common Well Name: KENAI B_ ELUGA UNIT 11-7 _ _ Spud Date: 11/10/200_5 Event Date Eve Sub 'Event Type --/-- Objective ~Re ort Date From - To Hours Code Phase p Code ! SideTrack- --/-- Description of Operations 19:30 - 20:30 1.00 CIRC_ MUD_ IN1 DRL Circ. clean (CBUX1, 80RPM, 650GPM, 1600psi). Observe well (losses 3-4 BPH). 20:30 - 22:00 1.50 TRIP_ WIPR IN1DRL POOH wet to 3950(tight@4913', 4850', 4840', 4824', 4783', 4725', 4535'). 22:00 - 23:00 1.00 TRIP_ WIPR IN1DRL RIH(tight@4625', and 5020' W/R 5014' to TD). 23:00 - 00:00 1.00 CIRC_ MUD_ IN1DRL Circ. clean (630GPM, 82RPM, 1550psi, 75 units trip gas). Observe well (losses 3-4 BPH). Pump dry job. 00:00 - 03:30 3.50 TRIP_ DP_ IN1DRL PJSM. POOH(4 BPH losses on trip)(SLM no correction). 03:30 - 05:30 2.00 TRIP_ BHA_ IN1 DRL Cont. POOH w/BHA. 05:30 - 06:00 0.50 TRIP_ BHA_ IN1EVL PJSM. M!U 8.5" core asst'. 11/19/2005 06:00 - 08:00 2.00 TRIP_ BHA_ IN1 EVL OH --/-- M/U 8.5" core asst'. 08:00 - 11:30 3.50 TRIP_ BHA_ IN1EVL RIH. Tag @ 5054'. Wash to 5080. 11:30 - 12:30 1.00 CIRC_ MUD_ IN1EVL Circ. out 319 GPM, 350 psi, 25 RPM. Drop ball and Circ. down. 12:30 - 19:30 7.00 CORE_ CONY IN1EVL Core from 5080' to 5160'. ART=6.9hrs. 19:30 - 21:30 2.00 CIRC_ MUD_ IN1 EVL CBU(20 RPM, 300 gpm, 430 psi). Monitor well. Pump dry job. 21:30 - 01:00 3.50 TRIP_ DP_ IN1 EVL POOH w/5" DP (losses 2 BPH while tripping). 01;00 - 02:30 1.50 TRIP_ BHA_ INIEVL POOH w/BHA. 02:30 - 05:00 2.50 TRIP_ BHA_ IN1EVL PJSM. UD core (recovered 82.5' of core). 05:00 - 06:00 1.00 TRIP_ BHA_ IN1EVL Check core bit. M/U 8.5" core asst'#2. 11/20/2005 06:00 - 07:00 1.00 TRIP_ BHA_ IN1EVL OH --/-- Cont. to M/U 8.5" core assy#2. RIH w/BHA. 07:00 - 09:30 2.50 TRIP_ DP_ IN1EVL RIH to 5056'. 09:30 - 10:00 0.50 WASH FILL IN1 EVL Wash 5056' to 5160'. 10:00 - 11:00 1.00 CIRC_ MUD_ IN1EVL CBU (310 GPM, 340 psi, 12 units gas). 11:00 - 11:30 0.50 CIRC_ MUD_ IN1EVL Space out. Drop ball and circ. 11:30 - 17:30 6.00 CORE CONV ~ IN1EVL Core from 5160' to 5249'. ART = 5,6hrs. 17:30 - 19:30 2.00 CIRC MUD_ IN1 EVL CBU (10 RPM, 300 GPM, 440 psi). Observe well (static). Pump dry job. 19:30 - 23:30 4.00 TRIP_ DP_ IN1EVL POOH w/DP (losses 2 BPH while POOH). 23:30 - 00:30 1.00 TRIP_ BHA IN1 EVL Cont, POOH w/BHA. 00:30 - 02:30 2.00 TRIP_ BHA_ IN1EVL PJSM. UD core/ Recovered 90'. 02:30 - 03:30 1.00 TRIP_ BHA_ IN1 EVL UD core barrel asst' and core bit. 03:30 - 06:00 2.50 REPAIR RIG_ IN1 EVL Repair hydraulic leak on top drive hydraulic line connection. Clean service lines. 11/21/2005 06:00 - 07:00 1.00 SERVIC RIG_ IN1DRL OH --/-- Service rig. 07:00 - 08:00 1.00 TRIP_ BHA_ IN1DRL M/U Dir BHA. RIH wlBHA 08:00 - 10:45 2.75 TRIP_ DP_ IN1 DRL RIH w/DP. 10:45 - 13:15 2.50 REAM_ OH_ INIDRL Open hole from 5080' to 5249' (12-15 K WOB, 650 GPM, 70 RPM). 13:15 - 02:00 12.75 DRILL_ ROT_ IN1 DRL Dir drill and survey F/5249' to 5585' (ART=7.6 hrs AST=3.1 hrs). 02:00 - 03:30 1.50 CIRC_ MUD_ IN1 DRL Circ. clean (CBUX2, 650 gpm, 80 RPM, 1850 psi). 03:30 - 05:30 2.00 TRIP DP_ ^ IN1DRL POOH to 4530' (tight @ 5424', 5416', 5411', 5374', 5364', 5288', 5253', 5225', 5116', 5029'. W/R 5230 to 5185'). 05:30 - 06:00 0.50 TRIP _ DP_ IN1 DRL RIH. 11/22/2005 06:00 - 07:00 1.00 CIRC_ MUD_ IN1DRL OH --l-- Circ shakers clean (CBUX2, 650 GPM, 80 RPM, 1950 psi, BiU gas 58 units). Observe well -losses 2-4 BPH. Pump dry job. 07:00 - 11:30 4.50 TRIP_ DP_ IN1 DRL POOH w/DP (SLM, no correction). 11:30 - 13:00 1.50 TRIP_ BHA_ IN1DRL POOH w/BHA. UD directional tools. 13:00 - 18:00 5.00 LOG_ OH_ IN1EVL PJSM prior to logging. R/U precision E/L. Run Quad combo 5500' to 1700'. POOH w/tools. 18:00 - 19:30 1.50 LOG_ OH_ IN1EVL UD Quad combo and P/U RFT. RIH to CSG shoe. Printed: 2123!2006 9:07:39 AM Marathon Oil Company Operations Summary Report -Per Well Page 4 of 11 Legal Weil Name: KENAI BELUGA UNIT 11-7 Common W ell Name: KENAI BELUGA UNIT 11-7 Spud Date: 11/10/2005 a t e Hours Code Phase / n ke s ~ ;Report D te Fro n To .Code --/- - De S deTrac c pt on of Operations 19:30 - 23:00 3.50 WAITON ORDR !N1 EVL Wait to get RFT points. 23:00 - 00:00 1.00 LOG_ OH_ IN1 EVL Attempt to run RFT. Could not get good test. POOH. Back up assy for RFT sheared off and left in hole(no tight pulls experienced). Parts resembles half of a scissor jack 17"X2"X1.5" and one part off of front 6"X2"X1.5". 00:00 - 02:30 2.50 LOG_ OH_ IN1EVL Discuss fishing and milling possibilities with BOT. 02:30 - 03:00 0.50 LOG_ OH_ INIEVL R/D Precision E/L. 03:00 - 03:30 0.50 REPAIR RIG_ IN1EVL C/0 extend ram on top drive. 03:30 - 04:00 0.50 TRIP_ BHA_ INIEVL M/U 12 1/4" Bit and BHA RIH. 04:00 - 06:00 2.00 TRIP_ DP_ IN1EVL RIH w/DP. 11123!2005 06:00 - 06:30 0.50 TRIP_ DP_ IN1 EVL OH --/-- Cont. to RIH. Tagged @ 5525'. Wash last 60' to bottom. Tagged @ 5540' cont to wash to bottom (positive indication of junk on bottom). 06:30 - 12:00 5.50 CIRC_ MUD_ IN1EVL Circ. and lower MW to 9.4 ppg (85 RPM, 650 gpm, 1560 psi). 12:00 - 15:30 3.50 TRIP_ DP_ IN1EVL POOH wlDP. 15:30 - 17:00 1.50 TRIP_ BHA_ IN1EVL POOH wlBHA. UD jars and bit. 17:00 - 18:00 1.00 TRIP_ BHA_ IN1EVL P/U 6-6 3l4" collars and rack back. 18:00 - 19:30 1.50 PULD_ BHA_ IN1EVL P/U Fishing BHA#1 components and M/U. 19:30 - 20:30 1.00 TRIP_ BHA_ IN1EVL Cont. RIH w/BHA. 20:30 - 22:30 2.00 TRIP_ DP_ INIEVL RIH w/DP to5570'. 22:30 - 23:15 0.75 CIRC_ MUD_ INIEVL CBU (650 gpm, 25 RPM, 1150 psi). 23:15 - 23:30 0.25 WASH FILL IN1 EVL Wash from 5570' - 5585'. 23:30 - 00:30 1.00 CIRC_ CFLD IN1 EVL Drop ball. Wash bottom with reverse basket and attempt to get core (very slow to drill off). Pump dry job. 00:30 - 04:30 4.00 TRIP_ DP_ IN1EVL POOH w/DP, 04:30 - 05:00 0.50 TRIP_ BHA_ IN1 EVL Empty reverse basket and boot baskets (recovered 85% of fish, lost 3 brass fingers from basket in hole). 05:00 - 06:00 1.00 TRIP_ BHA_ IN1EVL Dress reverse basket and M/U BHA. 11/24/2005 06:00 - 08:30 2.50 TRIP_ DP_ IN1EVL OH -/-- RIH w/DP. 08:30 - 09:30 1.00 CIRC_ MUD_ IN1EVL Circ. B/U and work boot baskets (650 GPM, 1080 psi, 45 RPM, B/U gas 5 units). 09:30 - 10:00 0.50 CIRC_ MUD_ IN1EVL Drop ball and work Rev Circ. junk basket. 10:00 - 13:30 3.50 TRIP_ DP_ IN1EVL Pump dry job and POOH w/DP. 13:30 - 16:30 3.00 TRIP_ BHA_ INIEVL POOH w/BHA. Empty and UD Rev. basket (no recovery). UD and empty boot baskets {recovered 1-finger from rev. basket and a 3"X 1 1/2"X1/16" piece of metal from RFT). 16:30 - 17:30 1.00 RURD_ ELEC IN1 EVL Pjsm; R/U Precision E-Line, M/U RFT Tools. 17:30 - 02:30 9.00 LOG_ OH_ INIEVL RIH W/ E- Line RFT Tools To 5457' Log/ RFT F/ 5457' T/ 4500', POH W/ E-Line. 02:30 - 03:00 0.50 RURD_ ELEC IN1EVL RID Precision WLS RFT E- Line Tools 03:00 - 04:00 1.00 TRIP_ BHA_ IN1EVL PJSM; M/U 11.5" BOT MagneU Clean Out BHA 04:00 - 06:00 2.00 TRIP_ DP_ INIEVL RIH W/ DP To 4550' @ 0600 Hr 11/25/2005 06:00 - 06:30 0.50 TRIP_ DP_ IN1EVL OH --/-- Cont. RIH w/11 112" magnet and boot baskets to 5585'. 06:30 - 09:00 2.50 CIRC_ MUD_ IN1EVL Circ. condition mud and work magnet and boot baskets (CBUX3, 23RPM, 650GPM, 1250psi). 09:00 - 11:30 2.50 TRIP_ DP_ INIEVL Pump dry job and POOH 11:30 - 13:30 2.00 TRIP_ BHA_ INIEVL POOH w/BHA. UD magnet and boot baskets (recovered 3-1"X1" pieces of tool steel from the RFT and 2-1"X2" pieces of the lost fingers from the rev. basket). 13:30 - 14:00 0.50 RUNPU L WBSH IN1CSG Pull wear bushing. Test run hanger assy. 14:00 - 15:30 1.50 TEST_ BOPE IN1CSG C/O pipe rams and test to 250-3000 psi / 5 min Printed: 2!23/2006 9:07:39 AM Marathon Oil Company Operations Summary Report -Per Well Legal Well Name: KENAI BELUGA UNIT 11-7 Common Well Name: KENAI BELUGA UNIT 11-7 iEvent Date Event Su ,Report Date From - To Hours Code Phase ~ 'Code 15:30 - 18:30 3.00 RURD_ CSG_ INICSG 18:30 - 19:30 1.00 RURD_ CSG_ IN1CSG 19:30 - 05:00 9.50 RUN CSG IN1CSG 05:00 - 05:30 0.50 RURD_ CSG_ INICSG 05:30 - 06:00 0.50 CIRC_ MUD_ INICSG 11/26/2005 06:00 - 08:00 2.00 CIRC_ MUD_ IN1CSG 08:00 - 09:30 1.50 PUMP CMT IN1CSG 09:30- 11:00 I 1.501 PUMP ICMT IIN1CSG 11:00 - 12:00 1.00 RURD_ OTHR IN1CSG 12:00 - 13:00 1.00 TEST_ WLHD IN1CSG 13:00 - 15:30 2.50 RURD OTHR IN1CSG 15:30 - 19:00 3.50 TEST BOPE IN1CSG 19:00 - 20:00 1.00 TEST_ CSG_ IN1CSG 20:00 - 00:00 4.00 PULD_ BHA_ IN1CSG 00:00 - 03:30 3.50 PULD_ DP_ IN1CSG 03:30 - 05:30 2.00 CUT_ WIRE INICSG 05:30 - 06:00 0.50 TRIP_ DP_ INICSG 11!27!2005 06:00 - 06:30 0.50 TRIP_ DP_ IN1CSG 06:30 - 07:30 1.00 DRILL_ CMT_ INICSG 07:30 - 08:00 0.50 DRILL_ ROT_ IN1CSG 08:00 - 08:30 0.50 CIRC_ MUD_ IN1CSG 08:30 - 09:00 0.50 TEST_ LOT_ IN1CSG 09:00 - 11:00 2.00 DRILL_ ROT_ PRIDRL 11:00 - 12:00 1.00 TRIP_ WIPR PRIDRL 12:00 - 16:00 4.00 DRILL_ ROT_ PRIDRL 16:00 - 17:00 1.00 CIRC_ MUD_ PRIDRL 17:00 - 17:30 0.50 TRIP_ DP_ PR1DRL 17:30-18:00 0.50 CIRC_ MUD_ PR1DRL 18:00 - 21:00 3.00 TRIP_ DP_ PR1DRL 21:00 - 22:00 1.00 TRIP_ BHA ~ PR1DRL 22:00 - 22:30 0.50 SERVIC RIG PR1 DRL 22:30 - 23:30 1.00 TRIP_ BHA_ PRIDRL 23:30 - 02:00 2.50 TRIP_ DP_ PR1DRL 02:00 - 06:00 4.00 DRILL_ ROT_ PR1 DRL 11/28/2005 06:00-15:30 9.50 DRILL ROT PRIDRL Page 5 of 11 Spud Date: 11/10/2005 Event Type --/-- Objective SideTrack- --/-- Description of Operations Adjust torque tube for spider elevators. C/O to long bales and spider elevators. PJSM; RIU To Run 9 518 Csg. PJSM; M/U Shoe Track (Shoe 2 Jts Csg. Float Collar) Thread Lock. Ck. Floats, Follow W/ 130 Jts 9 5/8 40# L-80 BTC Csg. Install Centralizers As Per Program. Land Hanger - F/C @ 5492' and Shoe @ 5579'. No Fill /Gain /Loss. RID Csg Tools, Clear Floor Circ. Cond.Mud For Cementing 9 518 OH --I-- Circ. 9 5!8" CSG (1.5 X CSG volume, 258 GPM, 405 psi) PJSM prior to cementing. Pump 5bbls water ahead. Test lines to 4500 psi. Drop bottom plug. Mix and pump 28 bbls MCS-4D spacer @ 10ppg. Mix and pump 297 SXS Class"G" cement w/2,2% SMS, .2% CD-32, ,6% FL-52, andd 1gphs FP-6L to yield 111 bbls 12.5 ppg slurry. Tail in w1248 sxs Class"G" cement w/15% BA-90, 2.5% BA-56, 2% CaCI, .5% EC-1, .5% SMS, .1°1° ASA-301, and 1gphs FP-6L to yield 85 bbls 13.5 ppg slurry. Cmt. in Place 10:30 Hrs. Drop top plug and kick out w/5bbls water from BJ. Displace w/411bb1s 9.6 ppg mud w/rig pumps. Bump plug w/1000psi over displacement pressure. Hold 1600 psi 5 min. Release pressure and check floats. R/D cement lines and cement head. Blow down lines. PJSM. UD landing joint. Install Vetco 9 5/8" X 13 5/$" Pack-off assy. Test pack-off to 5000psi110min. R/U DP tongs. Change to short bails and DP elevators. Adjust top drive torque tube. R/D stabing board. C/O upper rams to 5" rams. PJSM; Test BOPE And Related Components 250 /3000 psi (5 Min Test). Peform Accumulator Drawdown Test/ Time /Pressure. Pull Test Plug. Set WearRing, Clear Floor. Test Witness By AOGCC Rep Lou Grimaldi PJSM; Test 9 5/8 Csg. To 3000 psi F/ 30 Min, Test Successful UD 6 1/4 Collars From Rig Floor M/U Drctnl BHA F/ 8 1/2 Hole RIH PJSM; TIH W HWDP/ P/U 80 Jts 5 " D/P F/ Pipe Rack RIH PJSM; Slip & Cut Drilling Line.( 162 'Cut ) Continue TIH W 5" D/P F/ 3800' OH -/-- Cont. RIH w/DP. Tag @5492'. Dir Drill FC@5492'. Drill cement and shoe to 5579'. Clean old hole to 5585'. Dir Drill F/5585 to 5605' (ART=.5). CBU. Perform LOT to 15.2ppg EMW (MW=9.55 ppg, Press 1583 psi). Dir drill and survey F/5605' to 5679'. Torque on B/R after drilling stand down. POOH to 5429'. RIH to 5679'. Dir drill and survey F{5679' to 5869' (ART=3.4, AST=1.2). CBU (460 gpm, 1450 psi, 83 RPM). POOH to CSG shoe (tight @ 5665', 5622'). Pump dry job. Blow down Mud Lines PJSM; Monitor Well, POH F-5570 No Gain/Loss. Correct Hole Fill POH Wf Bha UD Bit # 5 Service Carrier, C/0 Valve On Dwks M/UI Bit # 6 RIH W BHA # 12 RIH W 5" DP To 5804. Wash & Ream F-5804' T- 5869' No Fill Gain/Loss. Trip gas 52 units. Drill /Rotate/ Survey F-5869' To 6185' No G/L Or Excessive Drag/ Torque. ART= 3.2hr. OH --/-- Dir drill and survey from 6185' to 6940'. ART=6.9hrs. Printed: 2/23/2006 9:07:39 AM Marathon Oil Company Operations Summary Report -Per Well Legal Well Name: KENAI BELUGA UNIT 11-7 Common Well Name: KENAI BELUGA UNIT 11-7 Event Date 'Event Sub Hours Code Phase Report Date 'From - To Code T 15:30 - 17:30 2.00 CIRC_ MUD_ PR1DRL 17:30 - 23:00 5.50 TRIP_ WIPR PR1DRL 23:00 - 00:00 1.00 SERVIC RIG_ PR1DRL 00:00 - 01:00 1.00 TRIP_ WIPR PR1DRL 01:00 - 02:00 1.00 CIRC MUD PR1DRL 02:00 - 05:00 3.00 DRILL_ ROT_ PR1 DRL 05:00 - 05:30 0.50 REPAIR RIG_ PR1DRL 05:30 - 06:00 0.50 DRILL_ ROT_ PR1DRL 11/29/2005 06:00 - 20:30 14.50 DRILL ROT PR1DRL 20:30 - 22:00 1.50 CIRC MUD PR1 DRL 22:00 - 02:00 4.00 TRIP WIPR PR1DRL 02:00 - 02:30 0.50 CIRC_ MUD_ PR1DRL 02:30 - 04:30 2.00 TRIP WIPR PR1DRL 04:30 - 05:00 0.50 SERVIC EOIP PR1DRL 05:00 - 06:00 1.00 TRIP WIPR PR1DRL 11/30/2005 ~ 06:00 - 07:30 ~ 1.50 ~ CIRC_ ~ MUD_ ~ PR1DRL 07:30 - 12:30 5.00 TRIP_ DP_ PR1 DRL 12:30 - 15:30 3.00 TRIP_ BHA_ PR1 DRL 15:30 - 16:30 1.00 RURD_ ELEC PR1EVL 16:30 - 20:00 3.50 LOG_ OH_ PR1 EVL 20:00 - 20:30 0.50 RURD_ ELEC PR1EVL 20:30 - 21:00 0.50 REPAIR RIG_ PR1 EVL 21:00 - 01:30 4.50 TRIP_ DP_ PR1 EVL 01:30 - 03:00 1.50 CIRC MUD PR1 EVL 03:00 - 04:00 1.00 TRIP_ DP_ PR1EVL 04:00 - 05:30 1.50 RURD_ RIG_ PR1EVL 05:30 - 06:00 0.50 RURD_ ELEC PR1 EVL 12/1/2005 06:00 - 06:30 0.50 RURD_ ELEC PR1EVL 06:30-11:00 4.50 LOG_ OH_ PR1EVL 11:00 - 12:00 .1.00 TRIP_ DP_ PR1EVL 12:00 - 13:00 1.00 RURD_ ELEC PR1EVL 13:00-17:30 4.50 LOG_ OH_ PR1EVL 17:30 - 18:30 1.00 WORK ELEC PR1 EVL ,Event Type - /-- Objective SideTrack- --/ - Description of Operations Page 6 of 11 Spud Date: 11/10/2005 Circ. clean and raise MW to 9.9 ppg (CBUX3,466 gpm, 81rpm, 1650 psi). Flow check and pump dry job Wiper trip from 6940' - 5579' (9 5/8" shoe). Wash and back ream @ 6766-6747', 6750'-6685', 6677 '/ 6585' / 6623' / 6588' / 6465' / 6492' /6434' /6419' ! 6355' 16309' f 6305'. Pump out of the hole from 6305' - 5610'. Service T/D, Rig, & Grease Grown. Replace Relay In T/D Control, Blow Down T/D & Mud Lines TIH F-5579' T-6940, Hole Slick, No Gain /Loss, Correct Displacement. Circulate, Pump Sweep @ 6940' 240 SPM 455 GPM 1850 psi. 90 RPM. Heavy cuttings Returned Over Shakers. Decrease In Drag & Pump Pressure as hole cleaned up. Dir Drill & Survey F-6940' T- 7130' (ART= 2hrs). No Gain /Loss Normal Drag Connections. Repair Cracked Tee In Hydraulic Line Under Carrier Dir Drill & Survey F- 7130' T- 7150 (ART.5) OH --/-- Dir drill and survey F/7150'-7900'. Begin increase MW to 10.3ppg @ 7155' due to conn gas of 450 units. Pumped 50 bbl sweep @13:OOhrs 7570'. TJD AT 2030Hrs. NO Gain /Loss Circ, Bttms Up For Samples As Per MOC Geo. Dept At 7900' To Confirm 81/2 Hole T/D At 7900' Circ Clean Hole Waiting On Verfication Of T/D PJSM; POH (Wiper Trip) F-7900- 5579 (9 5/8 Shoe) Hole Tight at 7613, 7396, 7320. Wash and ream at 7385-7281, 7240-7281, 7024-6980, 6850-6845, 6840-6780, 6770-6740. Having To Pump Out On Every Stand Circ. and Pump Weighted / Hi Vis Sweep Between 6770'-6710' Hvy Cuttings Returned Over Shakers. Contune Wiper Trip F 6770' Wash And Ream F- 6700-6680, 6578- 6529 and 6485-6469. Hole Slick From 6469 To 5579 No Gain/Loss. Hole Cleaned Up After Circulation. Service Rig. Draworks, Blocks, Inspect Carrier,Clean Floor TIH F-5579- 7900 (Wiper Trip) No Gain (Loss Excessive Drag, Hole Slick. Correct Hole Displacement. Wash last stand down. OH --/-- Pump sweep and circulate clean(CBUX2, 500gpm, 83RPM, 2200psi, WG=650units). Large quantity of clay across shakers. POOH(SLM) w/DP. UD 5" HWDP, Jars, Dir tools, and bit. PJSM. R/U Precision E/L. Run Precision Squad combo RID Precision E/L Tools PJSM; CIO Savor Sub On Top Drive TIH, W 5" DIP Open Ended T-7900' No G/L Correct Hole Displacement Circ Bttms. Up 2x (596 gpm 304 spm 1550 psi 85 rpm) At 7900' Hvy Cuttings Over Shakers. (250 Units Gas On B!U ) POH to 7075' And Park D/P, Per MOC Geo Dept To Run E-line in D/P F-MFT logs Remove Elevators & Bails Install Long Bails. R/U Precision E/L, MFT Tools OH --/-- PJSM, RU E-log equip, prepare logs Commence log well through DP 7900 - 7060 ft (MFT) PJSM, POH DP to 6243 ft for log interval #2 RU PKF wireline BOP PJSM, RIH wireline, E-log 7100 - 6150 ft (MFT) POH wireline E-loq tools Printed: 2/23/2006 9:07:39 AM Marathon Oil Company Page 7 of ~ ~ Operations Summary Report -Per Well Legal Well Name: KE NAI BEL UGA U NIT 11-7 Common Well Name: KE NAI BEL UGA U NIT 11-7 Spud Date: 11/10/2005 Event Date .Event Hours ' Code ' Sub Phase ,Event Type --/-- Objective ' Report Date ,From - To Code SideTrack- --/-- Description of Operations 18:30 - 19:00 0.50 TRIP_ DP_ PR1EVL POH DP to 5548 ft for log interval #3 19:00 - 22:00 3.00 LOG_ OH_ PR1EVL PJSM, RIH wireline, E-log 6400 - 5579 ft (MFT) 22:00 - 23:00 1.00 WORK ELEC PR1EVL POH wireline, E-log tools, RD same 23:00 - 00:00 1.00 PULD_ LOG_ PR1 EVL PJSM, flow check, lay out all E-log equip, clear floor, blow do lines. 11/10/2005 Event ORIGINAL COMPLETION --/-- Development -Gas 00:00 - 02:30 2.50 TRIP_ DP_ PR1CSG PJSM; Monitor Well. POH W/ Drillpipe F-5579'. No Gain/ Loss Correct Hole Fill 02:30 - 03:00 0.50 SERVIC RIG_ PR1CSG Service Rig, Adjust Brakes 03:00 - 04:00 1.00 TRIP_ BHA_ PRICSG M!U 8 1!2 Clean out Assy BHA 04:00 - 06:00 2.00 TRIP_ DP_ PR1CSG TIH W 5' D!P 12/2/2005 06:00 - 09:30 3.50 TRIP_ DP_ PR1CSG OH --l-- PJSM, RIH 5" DP !clean out BHA, precaution wash 7843 - 7900, 2 ft fill. No do drag /bridge /tight hole. Correct displacement, no gain !loss. 09:30 - 12:00 2.50 CIRC_ MUD_ PRICSG C/C mud, condition for Excape run. 12:00 - 13:00 1.00 SAFETY MTG_ PRICSG Safety meeting all crews, SPCC class. 13:00 - 15:00 2.00 CIRC_ MUD_ PRICSG Cont C/C fluids, sweep #1 with increase in cutiings return. Sweep #2 decreased cuttings return, wellbore clean. Fluid caliper shows approx 6% washout. No gain /loss. 15:00 - 00:30 9.50 PULD_ DP_ PR1 CSG Flow check, PJSM, POH laying do 5" DP 00:30 - 06:00 5.50 RURD_ CSG_ PR1CSG PJSM, R/U all Excape completion equip. 12/3/2005 06:00 - 04:30 22.50 RUN_ CSG_ PRICSG OH --/-- PJSM, commence run 3 1/2 Excape system as per MOC program, 18 modules tot., 3 control lines, 1 tension cable, to 7865 ft. No do drag /bridge, no gain loss, correct displacement. Circ at 1900, 5800, 7865 ft. 04:30 - 05:00 0.50 RURD_ ELEC PR1CSG PJSM, RU E-log equip for correlation. 05:00 - 06:00 1.00 LOG_ OTHR PRICSG Flow check, RIH E-line for correlation. 12!412005 06:00 - 08:00 2.00 LOG_ OTHR PR1CSG OH --/-- Run corellation logs, install 4 ft pup, position csg. Shoe 7870 ft, float collar 7833 ft 08:00 - 09:00 1.00 RURD_ CMT_ PR1CSG PJSM, RU cmt equip, inspect lines /connections. 09:00 - 13:00 4.00 PUMP_ CMT_ PR1CSG Commence cmt 3 112 csg: Pump 5 bbls H2o, test lines 3000 psi. Mix /pump 50 bbls MCS sweep at 10.5 ppg. Mix /pump 1067 sks (220 bbls) "G", 15.8 ppg. Flush lines with 5 bbls H2O. Drop plug, confirm plug dropped. Displace with 63.38 bbls KCL. Bump plug with 2000 psi, build to 3000 psi as csg test. 100 % returns during job, no gain /loss, no cmt to surface. ICP = 750 psi / 5.4 bpm, FCP = 1852 psi ! 3.85 bpm. Recip pipe 20 ft strokes duration of job. Bleed, floats holding PLUG BUMPED, CMT IN PLACE 1145 HRS 13:00 - 20:00 7.00 NUND ROPE PR1CSG PJSM, Flush lines f blow dn, ND ROPE 20:00 - 23:00 3.00 NUND WLHD PR1CSG PJSM, suspend 3 1/2 csg with 90 K, cut same /install PKF. Test to 5,000 psi / 10 min, test successful, no re-tests. 23:00 - 00:30 1.50 NUND TREE PR1CSG PJSM, install prod tree 00:30 - 01:30 1.00 TEST_ TREE PR1CSG Test primary /secondary pkf 5000 psi ! 10 min. Test tree 10,000 psi / 10 min, test successful, no re-test. Pull TWC, install BPV 01:30 - 06:00 4.50 RURD_ RIG_ RDMO PJSM, commence rig do Glacier rig #1, prepare move. 12/5/2005 06:00 - 06:00 24.00 RURD_ RIG_ RDMO OH --/-- PJSM, rig do /prepare Glacier rig #1 for move. No acc / do time. 12!612005 06:00 - 18:00 12.00 RURD_ RIG_ RDMO OH --/-- Cont. rig dn, prepare loads for move to GO #4. All modules /units broken and readied for load out. Release Glacier rig #1 this date, 1800 hrs. No acc / do time 11/15/2005 Event ORIGINAL COMPLETION --/-- Development -Gas 12/23/2005 09:00 - 09:30 0.50 SAFETY MTG WRLN OH --/-- Hold safety meeting. Issue safe work permit Printed: 2/23/2006 9:07:39 AM Marathon Oif Company Page $ of 11 Operations Summary Report -Per Well Legal Well Name: KENAI BEL UGA UNIT 11-7 Common Well Name: KENAI BEL UGA UNIT 11-7 Spud Date: 11/10!2005 'Event Date Event Hours Code Sub Phase 'Event Type --/-- Objective Report Date From - To ~ - - ---- - - Code SideTrack- --l-- Description of Operations 1 - - -- - 09:30 - 10:15 ~ 0.75 RURD _ - - -------------,. ~ -- - -- _ _ _ - ELEC WRLN Spot and RU Expro eline 10:15 - 12:55 2.67 RUNPU ELEC WRLN RIH radial bond log. GR /CCL not working but bond log quality is good. Log main pass. 12:55 - 15:15 2.33 RUNPUL ELEC WRLN RIH GR /CCL. Repeat mail bond log pass to merge later. POH GR /CCL 15:15 - 16:30 1.25 RURD_ ELEC WRLN RD Expro and leave location 1/6/2006 06:00 - 07:00 1.00 RURD_ STIM CMPSTM OH --/-- Inspect location. Start up all frac equipment to warm up same. 07:00 - 07:30 0.50 SAFETY MTG_ CMPSTM Hold PJSM. Discussed portable heater policy, slips trips, falls, production ops alarms, high pressure pumping. tracer chemicals. 07:30 - 09:30 2.00 TEST_ EQIP CMPSTM Pressure test frac lines and trucks to 10500 psig. Good test. Gel up blender and prepare for frac work. CHange over to Expro yellow firing line. 09:30 - 10:15 0.75 PUMP_ FRAC CMPSTM Frac mod 1 perfs at 7773-7783' w/ BJ Lightning_V_1800 wtr based system at 15 BPM at max TP = 6750 psi. Ramp 1.0 - 8.0 ppa. Place 24004 Ibs prop (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand) per design. Tot Load = 227 bbl. Tagged w/ ProTechnics CFT 2500 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 227 bbls) (Go to clean side flush)(Strap all chem tanks after job) 10:15 - 10:45 0.50 PUMP_ FRAC CMPSTM Peforate Module 2 perfs from 7649 - 7659'. Frac mod 2 perfs w/ BJ Lightning_V_1800 wtr based system at 15 BPM at max TP = 7600 psi. Ramp 1.0 - 8.0 ppa. Place 22314 Ibs prop (87.5 % 20140 Ottawa & 12.5% 12/20 Flex Sand) per design. Tot Load = 229 bbl. Tagged w/ ProTechnics CFT 2400 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. {cumm. load = 456 bbls)(Go to clean side flush)(Strap all chem tanks after job) 10:45 - 11:45 1.00 PUMP_ FRAC CMPSTM Peforate Module 3 perfs from 7579 - 7589'. Frac mod 3 perfs w/ BJ Lightning_V_1800 wtr based system at 15 BPM at max TP = 5560 psi. Ramp 1.0 - 8.0 ppa. Place 20979 Ibs prop (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand) per design. Tot Load = 208 bbl. Tagged w/ ProTechnics CFT 2200 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 664 bbls)(Go to clean side flush)(Strap all chem tanks after job)(change chem pump out on GBW-18 breaker) 11:45 - 12:15 0.50 PUMP_ FRAC CMPSTM Peforate Module 4 perts from 7437 - 7447'. Frac mod 4 perfs w/ BJ Lightning V_1800 wtr based system at 15 BPM at max TP = 5248 psi. Ramp 1.0 - 8.0 ppa. Place 22813 Ibs prop (87.5 °!0 20140 Ottawa & 12,5% 12/20 Flex Sand) per design. Tot Load = 213 bbl. Tagged w/ ProTechnics CFT 2100 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 877 bbls)(Go to clean side flush)(Strap all chem tanks after job) 12:15 - 12:45 0.50 PUMP_ FRAC CMPSTM Peforate Module 5 perts from 7353 - 7363'. Frac mod 5 perts w/ BJ Lightning_V_1600 wtr based system at 15 BPM at max TP = 5200 psi. Ramp 1.0 - 8.0 ppa. Place 22453 Ibs prop (87.5 % 20/40 Ottawa & 12.5°!0 12/20 Flex Sand) per design. Tot Load = 205 bbl. Tagged w/ ProTechnics CFT 2100 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 1082 bbls)(Go to clean side flush)(Strap all chem tanks after job) 12:45 - 13:15 0.50 PUMP_ FRAC CMPSTM Peforate Module 6 perfs from 7301 - 7311'. Frac mod 6 perts wl BJ Lightning_V_1600 wtr based system at 15 BPM at max TP = 5800 psi. Ramp 1.0 - 8.0 ppa. Place 23458 Ibs prop (87.5 % 20!40 Ottawa & 12.5% 12/20 Flex Sand) per design. Tot Load = 215 bbl. Tagged wl ProTechnics CFT 2000 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 1297 bbls)(Go to clean side flush)(Strap all chem tanks after job) 13:15 - 13:45 0.50 PUMP_ FRAC CMPSTM Peforate Module 7 perfs from 7190 - 7200'. Frac mod 7 perfs w/ BJ Lightning_V_1600 wtr based system at 15 BPM at max TP = 5550 psi. Ramp 1.0 - 8.0 ppa. Place 22673 Ibs prop (87.5 °!° 20140 Ottawa & 12.5% 12/20 Flex Sand) per design. Tot Load = 214 bbl. Tagged w! ProTechnics CFT 1900 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 1511 bbls)(Go to clean side flush)(Strap all chem tanks after job) 13:45 - 14:15 0.50 PUMP_ FRAG CMPSTM Peforate Module 8 perts from 7118 - 7128'. Frac mod 8 perts w/ BJ Lightning_V_1600 wtr based system at 15 BPM at max TP = 4825 psi. Ramp 1.0 - 8.0 ppa. Went to flush 3 bbls early on 8 ppg stage. Place 20000 Ibs prop (87.5 % 20/40 Ottawa & 12.5°I° 12120 Flex Sand)or 83% of design. Tot Load = 201 bbl. Tagged w/ ProTechnics CFT 1700 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 1712 bbls)(Go to clean side Printed: 2/23/2006 9:07:39 AM Marathon Oil Company Operations Summary Report -Per Well Legal Well Name: Common Well Name: iEvent Date Event KENAI BELUGA UNIT 11-7 KENAI BELUGA UNIT 11-7 ,'Report Date From - To Hours Code Code Phase 13:45 - 14:15 0.50 PUMP_ FRAC CMPSTM 14:15 - 14:45 0.50 PUMP FRAC CMPSTM 14:45 - 15:30 0.75 PUMP FRAC CMPSTM 15:30 - 16:30 I 1.00 PUMP_ FRAC CMPSTM 16:30 - 17:00 0.501 PUMP_ FRAC CMPSTM 17:00 - 17:30 I 0.501 PUMP I FRAC I CMPSTM 17:30 - 18:40 I 1.17 I PUMP I FRAC I CMPSTM 18:40 - 19:00 0.331 PUMP_I FRAC I CMPSTM 19:00 - 19:45 I 0.75 I PUMP I FRAC I CMPSTM 19:45 - 20:15 0.501 PUMP_I FRAC I CMPSTM Page 9 of 11 Spud Date: 11/10/2005 ,Event Type --/-- Objective SideTrack- --/-- Description of Operations flush)(Strap all Chem tanks after job) Peforate Module 9 perfs from 7001 - 7011'. Frac mod 9 perfs w/ BJ Lightning_V_1600 wtr based system at 15 BPM at max TP = 5000 psi. Ramp 1.0 - 8.0 ppa. Place 24486 Ibs prop (87.5 °J° 20/40 Ottawa & 12.5% 12/20 Flex Sand) per design. Tot Load = 220 bbl. Tagged w/ ProTechnics CFT 1600 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 1932 bbls)(Go to clean side flush)(Strap all chem tanks after job) Peforate Module 10 perfs from 6909 - 6919'. Frac mod 10 perfs w/ BJ Lightning V_1600 wtr based system at 15 BPM at max TP = 4172 psi. Ramp 1.0 - 8.0 ppa. Lost prime on frac pumps. Shutdown for 6 minutes and troubleshoot same. Start pumping at 15 BPM. Place 23257 Ibs prop (87.5 % 20/40 Ottawa & 12.5% 12120 Flex Sand) per design. Tot Load = 230 bbl. Tagged w! ProTechnics CFT 1600 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 2162 bbls)(Go to clean side flush)(Strap all chem tanks after job) Change to red firing line. Inspect frac trucks suctcion side. Peforate Module 11 perfs from 6819 - 6829'. Frac mod 11 perfs w/ BJ Lightning_V_1600 wtr based system at 15 BPM at max TP = 4300 psi. Ramp 1.0 - 8.0 ppa. Place 22164 Ibs prop (87.5 % 20140 Ottawa & 12.5°!0 12120 Flex Sand) per design. Tot Load = 212 bbl. Tagged w! ProTechnics CFT 1500 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 2374 bbls){Go to clean side flush)(Strap all chem tanks after job) Inspect LFC (gel) chem pump and bucket test same. Peforate Module 12 perfs from 6769 - 6779'. Frac mod 12 perfs w! BJ Lightning_V_1600 wtr based system at 15 BPM at max TP = 3475 psi. Ramp 1.0 - 8.0 ppa. Place 242351bs prop (87.5 °!0 20140 Ottawa & 12.5% 12!20 Flex Sand) per design. Tot Load = 219 bbl. Tagged w/ ProTechnics CFT 1500 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 2593 bbls)(Go to clean side flush}(Strap all chem tanks after job) Peforate Module 13 perfs from 6661 - 6671'. Frac mod 13 perfs w/ BJ Lightning_V_1600 wtr based system at 15 BPM at max TP = 3650 psi. Ramp 1.0 - 8.0 ppa. Call flush at 9 bbls short due to surface and BHP. Place 43783 Ibs prop (87.5 °f° 20/40 Ottawa & 12.5% 12/20 Flex Sand) or 87% of design. Tot Load = 319 bbl. Tagged w! ProTechnics CFT 1400 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 2912 bbls)(Go to clean side flush)(Strap all chem tanks afterjob) Peforate Module 14 perfs from 6509 - 6519'. Frac mod 14 perfs w/ BJ Lightning_V_1600 wtr based system at 15 BPM at max TP = 3460 psi. Ramp 1.0 - 8.0 ppa. Place 23787 Ibs prop (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand) per design. Tot Load = 213 bbl. Tagged w/ ProTechnics CFT 1200 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 3125 bbls)(Go to clean side flush)(Strap all chem tanks after job) Mix additional breaker chemical. Peforate Module 15 perfs from 6421 - 6431'. Frac mod 15 perfs w/ BJ Lightning_V_1600 wtr based system at 15 BPM at max TP = 3045 psi. Ramp 1.0 - 8.0 ppa. Place 24316 Ibs prop (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand) per design. Tot Load = 215 bbl. Tagged w/ ProTechnics CFT 1200 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 3340 bbls)(Go to clean side flush)(Strap all chem tanks after job) Peforate Module 16 perfs from 6292 - 6302'. Frac mod 16 perfs w/ BJ Lightning_V 1600 wtr based system at 15 BPM at max TP = 3600 psi. Ramp 1.0 - 8.0 ppa. Place 35662 Ibs prop (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand) per design. Tot Load = 271 bbl. Tagged w/ ProTechnics CFT 1100 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 3611 bbls)(Go to clean side flush)(Strap all chem tanks after job) Pressured up red firing line. Guns fired at 9100 psi. Red line vented indicating module 18 fired. Unsure whether Module 16 or 17 was treated in previous stage. Peforate Module 18 perfs from 6022 - 6032'. Frac mod 18 perfs w/ BJ Lightning_V_1600 wtr based system at 15 BPM at max TP = 3000 psi. Ramp 1.0 - 8.0 ppa. Place 23623 Ibs prop (87.5 20140 Ottawa & 12.5% 12120 Flex Sand) per design. Tot Load = 209 bbl. Tagged w/ ProTechnics CFT 1100 chemical tracer Printed: 2!23!2006 9:07:39 AM Marathon Oil Company Page 10 of ~ ~ Operations Summary Report -Per Well Legal Well Name: KENAI BELUGA UNIT 11-7 Common Well Name: KENAI BELUGA UNIT 11-7 Spud Date: 11/10/2005 .Event Date Event _ - - Sub _ Hours Code Phase Event Type - / Objective - - ~ ~ ~ _ - - _ - _ - - _ - - _ - ,Code .Report Date From - To SideTrack- --/-- Description of Operations 19:45 - 20:15 0.50 PUMP_ FRAC CMPSTM in pad and CFT 1000 in slurry volumes, along with So-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 3820 bbls)(Go to clean side flush)(Strap all them tanks after job) 20:15 - 21:30 1.25 RURD_ STIM CMPSTM Hold rig down safety meeting. RD frac lines and trucks and clean up same. 21:30 - 01:45 4.25 RURD_ COIL CMPSTM Hold PJSM. RU coil tubing and pressure test shell to 4500 psig. Transfer fluid volumes frac frac truck clean up tank to CT suction tank. 01:45 - 04:15 2.50 RUNPUL COIL CMPSTM RIH with CT circulating at min rate of .25 BPM. to 5900' CTM Make test pull and increase fluid rate to 1.75 BPM. (CP = 26-2700 psig WHP = 70 psig) Found and broke flappers in Modules 16, 11, 10, 9, 8, 4, and 2 at 6316', 6842', 6933', 7025', 7142', 7465', and 7679' CTM, respectively. 04:15 - 04:45 0.50 CIRC_ CFLD CMPSTM CBU and clean up returns at PBTD of 7831' CTM 04:45 - 05:00 0.25 RUNPU COIL CMPSTM POOH with CT to 6000' and shut down pumps 05:00 - 05:30 0.50 RUNPUL COIL CMPSTM RIH with CT searching for additionanl flappers without pumps. Circulated between flapper depths shutting down pumps at flapper depths. Found and broke flappers in Modules 3, 6, and 13, at 7607', 7327', and 6682' CTM respectively. No flappers found in Modules 5, 7, 12, 14, 15, 17, 18 at 7380', 7215', 6791', 6533', 6444', 6236', 6045', respectively. Still unable to determine if gun failure was on module 17 or 18 or whether module 17 or 18 was treated.(will need GR log for definitive answer to pick up RA tracers) 05:30 - 06:00 0.50 JET_ N2_ CMPSTM RIH to 7750 and start Nitrogen at 500 scfm with fluid rate at 1 BPM. Get Nitrogen to corner and shutdown fluid pump. Pump nitrogen only at 500 scfm at 7750' CTM 1/7/2006 06:00 - 13:00 7.00 JET_ N2_ CMPSTM OH --/-- Continue to jet well with nitrogen from below perforations with 50o scfm. Increased nitrogen to 800 scfm at 1230 hrs. Taking flowback samples for chemical tracer analysis. 13:00 - 13:45 0.75 JET_ N2_ CMPSTM Pooh to 6000' above perforations and continue jetting with 800 scfm nitrogen. Ran out of Nitrogen. 13:45 - 14:30 0.75 RUNPU COIL CMPSTM POOH with CT. 14:30 - 15:30 1.00 RURD_ COIL CMPSTM Change well flow through tree flowline and to well testers. Blew down Nitrogen pressure in CT. RD CT injector head from tree an dsecured same for the night. 15:30 - 06:00 14.50 FLOW_ TEST CMPSTM Unload and flow test well. Attempt to put well to sales at 2130 hrs 1/6/06 without success due to some facility leak issues. As of 0600 hrs 1/7/06 well is: FTP = 640 psig Gas = 3.5 mmcfd Water = +/_700 bwpd Choke = 44/64th Chlorides = 12000 1/8/2006 06:00 - 06:00 24.00 FLOW_ TEST CMPSTM OH --/-- Conitnued flow testing well. Put well into LP sales gas at 0930 hrs when facilities were ready. Well flowing at 3.9 mmcfd, 4-500 BWPD, FTP = 630 psig, Est. BHP = 1036 psig. At 1800 hours started losing flowline pressure and gained Est. BHP. Investigated same. Well sluggin up good quantities or frac sand plugging up wellhead and sand buster choke. Start working choke and maintaining slight gas flow through sand buster until well cleaned up. As of 0600 hrs 1/8/2006 well flowing at 3.4 mmcfd, FTP = 680 psig, Est. BHP= 1056 psig, and 250 - 350 BWPD. 1/9/2006 06:00 - 06:00 24.00 FLOW_ TEST CMPSTM OH --/-- Continued to flow test well. FTP = 840 psig, Est. BHP = 1179 psig, gas = 3.0 mmcfd, water = 256 bwpd. Total fluid recovery = 1889 bbls or 49.5% of total frac load of 3820 bbls. 1/10/2006 06:00 - 06:00 24.00 FLOW_ TEST CMPSTM OH --/-- Continue unloading and testing well. Well flowing at 810 psig FTP, 1165 psig BHP, 2.9 mmcfd, 235 bwpd. Cumm fludi recovery = 2103 bbls or 55% of total frac load of 3820 bbls. 1!11/2006 06:00 - 06:00 24.00 FLOW_ TEST CMPSTM OH --/-- Continue unloading and testing well. Well flowing at 830 psig FTP, 1159 psig BHP, 2.96 mmcfd, 171 bwpd. Cumm fludi recovery = 2283 bbls or 60% of total frac load of 3820 bbls. 1/1212006 06:00 - 06:00 24.00 FLOW_ TEST CMPSTM OH -/-- Continue unloading and testing well. Well flowing at 820 psig FTP, 1146 psig BHP, 3.0 mmcfd, 85 bwpd. Cumm Printed: 2/23/2006 9:07:39 AM Marathon Oil Company Page 11 of 11 Operations Summary Report -Per Well Legal Well Name: KENAI BELUGA UNIT 11-7 Common Well Name: KENAI BELUGA UNIT 11-7 Spud Date: 11/10/2005 Event Date Event Sub 'Event Type --/ - Objective Report Date From - To Hours Code Code Phase ' SideTrack- --1-- Description of Operations 1/12/2006 06:00 - 06:00 24.00 FLOW, TEST CMPSTM fludi recovery = 2450 bbls or 64% of total frac load of 3820 bbls. 1/13/2006 06:00 - 06:00 24.00 FLOW_ TEST CMPSTM OH --/-- Continue unloading and testing well. Well flowing at 810 psig FTP, 1145 psig BHP, 2.96 mmcfd, 171 bwpd. Cumm fludi recovery = 2601 bbls or 68% of total frac load of 3820 bbls. Release well testers and RD same. 1/31/2006 07:00 - 07:30 0.50 SAFETY MTG_ SLICK OH --/-- Arrive KGF office. Obtained work permit and held PJSM 07:30 - 09:45 2.25 RURD_ SLIK SLICK Arrive wellsite. RU slickline truck and lubricator. Get heater operable to thaw swab valve. 09:45 - 10:45 1.00 RUNPUL SLIK SLICK RIH with 2,70" gauge ring. Set down at 6028' SLM. Could not work through. Sticking bad. POOH 10:45 - 11:45 1.00 RUNPUL SLIK SLICK RIH with 2.35" gauge ring to 7802' SLM. Worked through modules at 6514', 7314', and 7335' SLM. POOH 11:45 - 12:45 1.00 LOG_ CSG_ SLICK Program ProT spectra-scan tool 12:45 - 16:00 3.25 LOG_ CSG_ SLICK RIH and run spectra-scan log from 5600' to 7700' SLM on down pass and from 7777' to 5600' SLM on up pass. POOH 16:00 - 17:00 1.00 RUNPUL SLIK SLICK RIH with 2.25" gauge ring to 7777' SLM 17;00 - 20:15 3.25 LOG_ CSG_ SLICK RIH with ProT PLT string and run up and down passes at 60, 90, and 120 fpm from 5950 - 7700' SLM. POOH 20:15 - 21:00 0.75 RURD SLIK SLICK RD slickline. Check ProT log data. Close out work permit and sign out at KGF office Printed: 2/23/2006 9:07:39 AM • ~ t'A~~ ~ ~ ~ ~~ ~ ~ ~~ ~~~~~~ ~.. AI.A58A OII, AHD GAS COIIt5ERQAT'IOH COrII~IISSIOIQ Willard J. Tank Advanced Senior Drilling Engineer Marathon Oil Company P.O. Box 3128 Huston, TX 77253 ~~ FRANK H. MURKOWSK/, GOVERNOR ~~ f ~' 333 W. 7'" AVENUE, SUITE 100 ~ ANCHORAGE, ALASKA 99501-3539 ® PHONE (907) 279-1433 FAX (907) 276-7542 Re: KBU 11-7 Marathon Oil Company Permit No: 205-165 Surface Location: 490' FSL, 1066' FWL, Sec. 6, T4N, R11W, S.M. Bottomhole Location: 1057' FNL, 1127' FWL, Sec. 7, T4N, R11W, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty- four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at (907) 659- 3607 (pager). DATED this day of November, 2005 cc: Department of Fish 8v Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. M Marathon MARATHON oil Company November 1, 2005 John Norman Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7t" Ave, Suite 100 Anchorage, AK 99501 Reference: Drilling Permit Application Field: Kenai Gas Field Well: KBU 11-7 Dear Mr. Norman Worldwide Drilling North America P.O. Box 3128 Houston, TX 77253-3128 Telephone 713-629-6600 Fax 713-499-6737 d 4~ Enclosed please find the PERMIT TO DRILL application, along with the associated attachments and filing fee of $100. The intent is to drill a well in the Beluga / Upper Tyonek Pool in the Kenai Gas Field. No completion is desired in the Sterling pool. If you require further information, I can be reached at 713-296-3273 or by a-mail at wjtank~ marathonoil.com. Sincerely, ~~~~~'~ Willard J. Ta k Advanced Senior Drilling Engineer Enclosures STATE OF ALASKA ALA OIL AND GAS CONSERVATION COMM .ON PERMIT TO DRILL 20 AAC 25.005 ., . rE ,;,;sti~~ 1a. Type of Work: Drill ~ Redrill Re-entry ~ 1b. Current Well Class: Exploratory Development Oil ~'_ I~f;ll~ne ~ Stratigraphic Test ~] Service ~ Development Gas Q Single Zone [] 2. Operator Name: Marathon Oil Company 5. Bond: Blanket ~ Single Well Bond No. 5194234 11. Well Name and Number: KBU 11-7 3. Address: P.O. Box 3128, Houston, TX 77253 6. Proposed Depth: MD: 7,987 TVD: 7,697 12. Field/Pool(s): Kenai Gas Field 4a. Location of Well (Governmental Section): Surface: 490' FSL, 1,066' FWL, Sec. 6, T4N, R11W, S.M. ~ 7. Property Designation: A-028142 Beluga / Upper Tyonek Pool Top of Productive Horizon: 1,057' FNL, 1,127' FWL, Sec. 7, T4N, R11W, S.M. 8. Land Use Permit: 13. Approximate Spud Date: November 10, 2005 Total Depth: 1,057 FNL, 1,127 FWL, Sec. 7, T4N, R11 W, S.M. ~ 9. Acres in Property: 2,560 14. Distance to Nearest Property: 1,067 ft 4b. Location of Well {State Base Plane Coordinates): Surface: x - 271,988.97 y - 2,362,537.28 Zone - 4 10. KB Elevation (Height above GL): (21' AGL) 87 feet 15. Distance to Nearest Welt Within. Pool: t,3oa n. to KBU 31-7RD 16. Deviated wells: Kickoff depth: 500 feet Maximum Hole Angle: 24.24 degrees 17. Maximum Anticipated Pressures in psig (see 20 5.035) Downhole: 3,602 Surface; 2 18. Casing Program: Size Specifications Setting Depth Top Bottom Quantity of Cement c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 20" 133 K-55 PE 107' 0' 0' 128' 128' i6" 13318" 68 L-80 BTC 1,691' 0' 0' 1,712' 1,676' 527 sacks ~ 12 1J4" 9 5/8" 40 L-80 BTC 5,606' 0' 0' 5,627' 5,337' 553 sacks ~ 8 1/2" 3 1/2" 9.3 L-80 EUE 7,966' 0' 0' 7,987' .7,697' 1,087 sacks ,= 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry O perations) Total Depth MD (ft): Total Depth TVD (ft); Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee ~ BOP Sketch ~ Drilling Program ~ Time v. Depth Plot Shallow Hazard Analysis Property Plat ~ Diverter Sketch Q Seabed Report ~ Drilling Fluid Program Q 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Willard J. Tank Title Advanced Senior Drilling Engineer Signature ~ Phone 713-296-3273 Date November 1, 2005 Commission Use Only Permit to Drill Number: 20$"-- /~5 APl Number: 50- ~ ~~ -- ZO.CS~ Permit Approval Date: See cover letter for other requirements. Conditions of approval S p1 required Yes ~ No ~ Mud log required Yes ~ No y n sulfide measures Yes ~ No ~ Directional survey required Yes ~ No [l Other: <, ~" ~ U ~ c-~l~C'% `~ S-z • APPROVED BY ~ '~~~ Approve THE COMMISSION Date: 10-4 1 R ised 06!2004 (' R ~ i ` ~ i` i Submit inDuplicate • / ~ MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Kenai Gas Field KBU 11-7 Original 10131/05 Originator: W.J. Tank Drilling Superintendent: P.K. Berga North America Drilling Manager: B.J. Roy Page 1 of 13 r~ Table of Contents General Well Data ................................................................................................. Geologic Program Summary ................................................................................. Summary of Potential Drilling Hazards .................................................................. Formation Evaluation Summary ............................................................................ Drilling Program Summary .................................................................................... Casing Program ..................................................................................................... Casing Design ....................................................................................................... Maximum Anticipated Surface Pressure ............................................................... ROPE Program ...................................................................................................... Wellhead Equipment Summary ............................................................................ Directional Program Summary .............................................................................. Directional Surveying Summary ........................................................................... Drilling Fluid Program Summary ........................................................................... Drilling Fluid Specifications .................................................................................... Solids Control Equipment ...................................................................................... Cement Program Summary ................................................................................... Bit Summary .......................................................................................................... Hydraulics Summary ............................................................................................. Formation Integrity Test Procedure ....................................................................... ..................................................................3 .................................................................. 3 ..................................................................4 ..................................................................4 .................................................................. 5 .................................................................. 6 ..................................................................6 .................................................................. 6 ..................................................................8 ..................................................................9 .................................................................. 9 .................................................................10 ................................................................10 ................................................................11 ................................................................11 ................................................................12 ................................................................12 ................................................................12 ................................................................13 Page 2 of 13 General Well Data • Welt Name KBU 11-7 Lease/Ucense Surface Location 490' FSL, 1,066' FW L, Sec. 6, T4N, R11W, S.M. WBS Code DD.05.12830.CAP.DRL SlotlPad Pad 14-6 Field Kenai Gas Field Spud. Date 11/10/05 (est.) KB Elev. 87 County/Province Kenai Peninsula API No. Ground Leval Elev. 66 State /Country Alaska Well Class Development Penn. Datum KB Total MD 7,98T Rig: Contractor Glacier Drilling Water Depth N/A Total ND 7,697 Rig. Name: #1 Water Protection Depth Comments: Geologic Program Summary Formation. MD -RKB (ft) TVD -RKB (ft) Pore Pressure (psi) Pore Pressure ( } L' Pos§ib~e Fluid Content Sterling A-8 (Not a Prod Target) 3,753 3,537 0.8 - 6.5 Sandstone Gas /Water Beluga (Not a Prod Target) 5,000 4,712 1.5 - 7.3 Sandstone Gas Beluga U5lU6 (Not a Prod Target) 5,146 4,857 1.5 - 7.3 Sandstone Gas Middle Beluga (Primary Target) 5,652 5,362 3.8 - 8.8 Sandstone Gas Lower Beluga (Primary Target) 6,367 6,077 3.8 - 8.8 ~.., Sandstone Gas Tyonek (Secondary Target) 7,512 7,222 5.8 .0 Sandstone Gas Comments: Surface Location Coordinates From Lease/Bk~ckk Lines 490' FSL, 1,066' FWL, Sec. 6, T4N, R11W, S.M. Latitude 60° 2T 38.876" N Longitude 151 ° 15' 47.584" W UTM North (Y) 2,362,537.28' UTM Fast (x) 271,988.9T 7olerar~e Horiaontal Depth pis~acemenf ft) MD TVD +N/-S +E/-W Tolerance Dlreotionat Target (ft ft) Location (Y X) (ft)' Middle Beluga 5,652 5,362 1,057' FNL, 1,127' FWL, Sec. 7, T4N, R11W, S.M. -1,547 61 Circle 250' radius TD 7,987 7,697 1,057' FNL, 1,127' FWL, Sec. 7, T4N, R11W, S.M. -1,547 61 Circle 250' radius Comments: Page 3 of 13 • • Summary of Potential Drillina Hazards Fiazard Event Discusskm .Lost Circulation in Low Pressure Sterling and Belu a sands Control losses by using sufficiently sized LCM, including fibrous and calcium carbonate types. Comments: Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the drillers dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC or BLM inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No H2S is anticipated. Gas sands will be encountered from +/- 3,753 MD (3,537' TVD) to total depth of the well. These sands will run from highly depleted to slightly above normal pressure. Lost circulation and differential sticking are potential hazards in some of the Sterling and Beluga sands. The Flo-Pro mud system that will be used to drill the well will help reduce these risks and lost circulation materials will be on location. Weighting material will available on location for proper well control.. Formation Evaluation Summary .Interval LWD Electric Logs Mud Low Surface None None None 0' - 1,712' MD Intermediate None Reeves Quad Combo with pressures Basic with GCA, shale density, temperature in and out, 1,712' - 5,627' MD through pipe. Pull GR-Neutron to surface sample collection (10' samples). inside casing. Production None Reeves Quad Combo with pressures Basic with GCA, shale density, temperature in and out, 5,627' - 7,987' MD throw h i e. Pull GR-Neutron to tie into g p p sample collection (10' samples). Intermediate run. Completion NIA GR, CCL N/A Coring Requirements: There are 2 - 90' cores to be taken in the Beluga U5/U6 zones at approximately 5,146' MD (4,857' TVD). The actual depths will be determined by Geology prior to running the core equipment. Comments: Page 4 of 13 • • Drilling Program Summary CONDUCTOR: 1. Drive 20" conductor to +/-130 ft. RKB. 2. Move in and rig up rotary drilling rig. 3. Install starting head 20" SLC x 21 1/4", 2M flanged. 4. Nipple up 21 1/4", 2M diverter, 16" diverter valve, and 16" diverter line. 5. Function test diverter and diverter valve. SURFACE: 1. Drill a i6" hole to 1,712' MD (1,676' TVD) per the directional plan. 2. RIH with 13 3!8" casing and hang off in the elevators. Make up stab-in sub and centralizer on 5" drill pipe. TIH with inner string and latch into stab-in float collar. Cement 133/8" casing. Sting out, shear out drill pipe wiper plug, and circulate drill pipe clean. TOOH with inner string. 3. Cut off 13 3!8" casing. ND diverter. 4. Install 13 3/8" slip lock connection X 13 5!8" 5M flanged multibowl wellhead. 5. NU 13 5/8" 5M BOP'S. Test BOP'S and choke manifold to 250/3,000 psi. 6. Set wear bushing. 7. Test surface casing to 3,000 psi. INTERMEDIATE: 1. PU 12 1/4" Bit and BHA, including GR/LWD for picking core point. Drill out float equipment and make 20' of new hole. CBU. 2. Test shoe to leak off. Estimated EMW is 15.0 ppg. ~ 3. Drill 12 1/4" hole to approximately 5,146' MD (4,857' TVD) per the directional program. Circulate hole clean and TOOH. LD /r BHA. (Note core point will be picked by the geologist.) 4. PU 1S' core barrel and TIH. Cut 90' core. Circulate hole clean and TOOH. LD core. 5. PU 2"d core barrel and TIH. Cut the second 90' core. Circulate hole clean and TOOH. LD core. 6. PU BHA (including GR/LWD) and TIH. Ream cored section. Log cored section with GR/LWD. Drill 12 1/4" directional hole to 5,627' MD (5,337' TVD) as per directional program, short tripping as necessary (1,000' or 24 hours, but can be extended depending on hole conditions). 7. At TD circulate hole clean. Make wiper trip. TOOH. 8. RU Precision. Run open hole fogs as per plan. RD logging company. 9. TIH w/ 12 1/4" bit to TD for wiper trip. TOOH and lay down BHA. Pull wear bushing. 10. Change out variable pipe rams with 9 5/8" casing rams. Run test plug and test casing rams to 3,000 psi. ~' 11. Run and cement 9 5/8" casing. Land hanger in multibowl wellhead. 12. Back out landing joint. Change out 9 5!8" casing rams with variable pipe rams. Run test plug and test rams to 250J3,000 psi. ~ 13. Set wear bushing. Test casing to 3,000 psi. PRODUCTION: 1. Drill float equipment and 20' of new formation w/ 8 1/2" bit. CBU. 2. lest shoe to leak off. Estimated EMW 13.0 ppg. 3. Drill 8 1/2" hole to approximately 7,987' MD (7,697' TVD) per the directional program, short tripping as necessary (1,000' or 24 hours, but can be extended depending on hole conditions). 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU Precision. Run open hole togs as per plan. RD logging company. ~~ 6. TIH wJ 8 1/2" bit to TD for wiper trip. TOOH to 9 5/8° shoe and circulate until log evaluation is complete for picking EXCAPE modules. After picks are made, trip to TD and circulate clean. TOOH and laydown BHA and drill pipe. Pull wear bushing. 7. RU and run 3 1/2" EXCAPE casing string. RU logging company to correlate EXCAPE modules to open hole logs. RD logging ~'" company. 8. Cement 3 1/2" casing while reciprocating. Bump plug with 500 psi over displacement pressure. WOC. ~ 9. PU 3 1/2" casing. PU BOP stack. Run control and electric lines out tubing head outlet. Set slips. Cut 3112" casing. Page 5 of 13 • • 10. LD BOP. Set 3 1/2" packoff. NU 13 5/8" 5M X 3 1/8" 5M tubing head adapter and 3 1/8" 5M tree. Test tree to 5,000 psi. 11. Rig down and move out drilling rig. Note: Drill all hole sections with 5" drillpipe. Final core points will be determined by Geology. Perforating guns will be run on the outside of the 3 1/2" production casing with a flapper valve just below each perforating gun. Guns to be activated by control line to surface. COMPLETION: Completion will be done without a rig. Casing Program MD (ft) Connection APt Ratkrgs Casing Size (m) T ottom ert {Ibslft) rade. ~ ype ~ . D. (m) Makeup Torque (ft-1bs) ole Size (m) ~ 'y m' g H ~ .r ~ o g U .~ 13 3/8 Surface 1,712 68 L-80 BTC 14.375 N/A * 16 5,020 2,260 1,545 9 5/8 Surface 5,627 40 L-80 BTC 10.625 N/A * 12 1/4 5,750 3,090 979 31/2 Surface 7,987 9.3 L-80 8rd 4.5 3,200 81/2 10,160 10,530 207 Comments: * The make up of the buttress connection will be to the proper mark. Casino Design Casing Shoe Safety Factors Easing Size (in) Weight. (It)!ft) rade Setting Depth (TVD) Mud Wt When Set (Iblgal) Frac. Grad (Ib/gal) Form Press (Ib/ ) Maximum Surface Pressure (psi) ~ °0 m ~ ~ U ,~¢ ~ ~ 133/8 68 L-80 1,676 9.4 15.0 8.4 0 3.10 2.77 4.71 9 5/8 40 L-80 5,337 9.5 13.0 1.5 2,832 1.58 1.17 2.94 31/2 9.3 L-80 7,697 10.0 15.0 9.0 2,832 1.16 2.57 1.30 Comments: Max overpull on the 3 1/2" casing must be limited to 90,000 lbs. /~ Maximum Anticipated Surface Pressure Casing Size (in setting Deptli TVD (ft} MAWP * .psi) MASP ** / (psi) Mud/Gas Ratio 133/8 1,676 3,418 0 0/100 9 5/8 5,337 3,997 2,832 0/100 31/2 7,697 6,912 2,832 0/100 * MAWP =Maximum allowable working pressure ** MASP =Maximum anticipated surface pressure Comments: Page 6 of 13 • • MASP / MAWP CALCULATIONS: Surface casing: 13 3/8" (1,712' MD. 1,676' TVDI MASPtrac =((Fracture gradient at shoe + S.F.) x .052 x TVDsnoe) -Hydrostatic pressure of gas column at the shoe. MASPfr~ _ (15.0 ppg + 0.5 ppg) x .052 x 1,676' - (.1 psi/ft x 1,676') MASPfr~ = 1,350 psi - 168 psi MASPtrac = 1,182 psi. MASPbnp = BHP„ nae to -Hydrostatic pressure of a gas column MASPbnp = (1.5 ppg x .052 x 5,337') - (0.1 psi/ft x 5,337') MASPbnp = 416 psi - 534 psi MASPbnp = 0 psi MASP =MASPbnp = 0 psi / MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAW P = (0.7 x 5,020) - (9.4 - 8.3) x .052 x 1,676' MAW P = 3,514 psi - 96 psi = 3,418 psi Intermediate casing: 9 5/8" (5,627' MD. 5.337' TVDI MASPtr~ _ ((Fracture gradient at shoe + S.F.) x .052 x TVD~,~) -Hydrostatic pressure of gas column at the shoe. MASPfr~ _ (13.0 ppg + 0.5 ppg) x .052 x 5,337' - (.1 psi/ft x 5,337') MASPrr~ = 3,747 pSi - 534 pSi MASPfr~ = 3,213 psi. MASPa,p = BHP, no,etd -Hydrostatic pressure of a gas column MASPbnp = (9.0 ppg x .052 x 7,697') - (0.1 psi/ft x 7,697') MASPbnp = 3,602 psi - 770 psi MASPbnp = 2,832 psi MASP =MASPbnp = 2,832 psi ~ MAW P = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAW P = (0.7 x 5,750) - (9.5 - 9.4) x .052 x 5,337' MAW P = 4,025 psi - 28 psi = 3,997 psi Production casino: 3 1/2" (7,987' MD, 7,697' TVD) MASPfr~ _ ((Fracture gradient at shoe + S.F.) x .052 x TVDsnoe) -Hydrostatic pressure of gas column at the shoe. MASPtrac = (15.0 ppg + 0.5 ppg) x .052 x 7,697' - (.1 psi/ft x 7,697') MASP~re~ = 6,204 psi - 770 psi MASP,r~ = 5,434 psi. MASPbnp = BHPopen na®ta -Hydrostatic pressure of a gas column' MASPbnp = (9.0 ppg x .052 x 7,697') - (0.1 psi/ft x 7,697') MASPbnp = 3,602 psi - 770 psi MASPbnp = 2,832 psi MASP =MASPbnp = 2,832 psi -'! MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 10,160) - (10.0 - 9.5) x .052 x 7,697' MAWP = 7,112 psi - 200 psi = 6,912 psi Page 7 of 13 • • BOPE Program Casing Test Test :Casing Test Fluid Pressure Size MAWP MASP Press Density BOPS L.owMigh Casing (in) (psi) (psi) psi (Ib/gal) Size & Rating dpsi} (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Surface 133/8 3,418 0 3,000 9.4 (1) 13 5/8" 5M blind ram 250/3,000 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Intermediate 9 5/8 3,997 2,832 3,000 9.5 (1) 13 5/8" 5M blind ram 250/3,000 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Production 3 1/2 6,912 2,832 3,000 10.0 (1) 13 5/8" 5M blind ram 250/3,000' (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets Comments: Blowout Preventers The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind~rams in the bottom and pipeams in the top and a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets. The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and avacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. Casing Test Pressures Casing test pressures are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back-up unless otherwise noted. Page 8 of 13 • • Wellhead Eauipment Summary Component Description CasKtg Hanger Type 13-5/8" 3M X 13-3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, 13 5/8" x 9 5/8" Fluted Casing Head PR1 Mandrel 13-5/8" 3M Studded Bottom X 13-5/8" 5M Flg Top, W/ 2, 2-1/16" 5M Studded Outlets, 13 5/8" x 3 1/2" Manual Tubing Head U,AA,PSLi , PR1 Slip Adapter Flange 13-5/8" 5M X 3-1/8" 5M W/Seal Pocket and 3" H BPV Threads Comments: Control lines and electric cable for the EXCAPE system will be routed through the tubing head side outlet. Directional Program Summary Build Tum Coordinates Sec. tdo. Description MD (ft) TVD (ft) Rate (°/100') Rate (°1100') Dogleg (°1100') Inclination (deg) Azrrnuth (deg) +id/-S (ft) +FJ-W (ft)' VS (ft) 1 Tie On 0 0 0 0 0 0 177.79 0 0 0 2 KOP 500.00 500.00 0 0 0 0 177.79 0 0 0 3 Build up Section 2.00 0 2.00 177.79 4 End of Build 1,711.87 1,676.05 2.00 0 2.00 24.24 177.79 -252.34 9.76 252.52 5 Hold Section 0 0 0 24.24 177.79 6 End of Hold 4,176.47 3,923.40 0 0 0 24.24 177.79 -1,263.35 48.85 1,264.29 7 Drop Section -2.00 0 2.00 177.79 8 Drop to Core Point 5,088.34 4,800.00 -2.00 0 2.00 6.00 177.79 -1,500.00 58.00 1,501.12 9 Hold for core 0 0 0 6.00 177.79 Y0- End of Hold 5,326.65 5,037.00 0 0 0 6.00 177.79 -1,524.89 58.96 1,526.03 11 Drop Section -2.00 0 2.00 177.79 12 Drop to the Target 5,626.65 5,336.45 -2.00 0 2.00 0.00 177.79 -1,540.57 59.57 1,541.72 13 TD 7,987.20 7,697.00 0 0 0 0.00 177.79 -1,540.57 59.57 1,541.72 Comments: Vertical section calculated from a reference azimuth of 3.49° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MD) KBU 21-7 53.76 1,512 KBU 23.7 55.73 1,449 KBU 14X-6 69.17 1,128 KBU 23X-6 126.03 1,642 No serious interference exists. See attached directional plan and anticollision analysis for more details. Page 9 of 13 i • i _ -- '~ I - -- r- -, ~ i 1000 ~ ~- i _: ~ _, _~_ .._ __ 13.375"Surface Casing ~ 2000 - ~ -~ ' ~.. - - - `-- ~ ~ c 3000 II I .c 4000 ~ _ 1 - t ~ ~ - . _ ~' ~_ r. ± i O II i = v 5000 - i 9.625" Intermediate Casing - - ! _~ ~ l _1 Z i - _ _ _ ~ ' m KBU 11-7 Middle Beluga 6000 ~ -- - _ _ -- ~_ T - ---- - - - H 7000 -- - -1 I 3500 "Production Casing ±- _ _ 8000 _ . -~ i I I '-,r _ KBU ~ 11-7 TD { 3000 -2000 -1000 0 1000 2000 3000 4000 5000 Vertical Section at 177.79° (2500 fUin) 500 0 500 1000 West(-)/East(+) (600 ft/in) Directional Surveying Summary Interval MWD Survey Magnetic Multishot Gyro Multishot Comments 0-1,712' X 1,712' - 5,627' X 5,627' - 7,987' X Comments: Drilling Fluid Program Summary Interva l - TVD _ Minimum'inventory From To Density Gel ft) (ft) (IWgal) Fluid Description Additives Visc~ifier Barite.. Gel, Gelex, Soda Ash, Caustic, Barite, 0 1,676 8.6 - 9.4 Gel / Gelex Spud Mud Polypac Supreme UL, Sodium Meta Bisulfate Flo-Vis, Polypac Supreme UL, KCI, SafeCarb 1,676 5,337 9.0 - 9.5 6% Flo-Pro w/ Safecarb 10,40,250, Mix II, Barite, Caustic, Conqor 404, Sodium Meta Bisulfate Flo-Vis, Polypac Supreme UL, KCI, SafeCarb 5,337 7,697 9.0 ~.0 6% Flo-Pro w/ Safecarb F&M, Barite, Caustic, Klagard, Conqor 404, Sodium Meta Bisulfate, EMI 920 Comments: See mud prognosis for details. The mud system from the intermediate section will be utilized in the production hole section instead of building a new mud for that section. Sized CaCO3 (SafeCarb) will be used to control leakoff. Page 10 of 13 i Drilling Fluid Specifications C Interval - TVD LSRV From (ft) To (ft) .Density (Ib/gal) Vis (sec/gt) 1 min (Ib./100ftz) PV (cP) YP (Ib/100 ftZ) Fluid Loss (cc) pH Drill Bolick (%) 0 1,676 8.6 - 9.4 60 - 100 N/A 25 - 35 NC - 12 +/- 9.5 < 7.5 1,676 5,337 9.0 - 9.5 40,000 + 8 - 12 7 - 9 +/- 9.5 +/- 5 5,337 7,697 9.0 - 10.0 ~ 30,000 + 10 - 14 6 - 8 +/- 9.5 +/- 5 Comments: As a standard practice for long string completions, the drilling mud that will remain above the top of cement on the 3'/z" production casing will be treated with corrosion inhibitor (Congor 303A) at a concentration of 1 drum per 100 barrels of drilling fluid. See mud prognosis for details. Solids Control Equipment 0 m ~ ~ m ~ m ~ _ c ~ .~ _ Cl ~ W M _ W Qf ql (A ~ C 1+ ~ Interval ~ ~ ~ ~ v U U N Comments 0 - 7,987' MD X X X X Closed Loop System, Full Containment Item Equipment Specifications (quantity, desi type, brand, model, flow capacity, etc) Shaker 2 -Derrick Model 2E48-90F-3TA Desander N/A Desilter 1 -Derrick Model 0522 Mud Gleaner N/A Centrifuge 2 - MI/Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G&I Facility Zero Discharge N/A Comments: The solids control equipment will consist of two flowline cleaners, a desilter, and the MI centrifuge van. Included will be equipment to de-water the underfloor from the mud processing equipment to allow for disposal of the cuttings and solids by slurrification and injection into the disposal well at the KGF. Page 11 of 13 • Cement Program Summary Depth Gaufle Top of Cement Open Casing Size (in) MD ft TVD ft Hole Size (in) MD ft) TVD ft) Ann Vol To TOC (ft~ Slurry Vol (ft~ WOG Time {hrs) Hole Exeess (%) 133/8 1,712 1,676 16 0 0 772 1,322 8 75 9 5/8 5,627 5,337 12 1/4 3,200 3,033 760 1,098 8 40 31/2 7,987 7,697 81/2 5,100 4,812 961 1,272 N/A 40 Mix MVater Compressive Casing Size Density Qty/ Yield Slurry Vol TOC MD Qty WL- FW Strength ~) (in) Slurry Dement Description (Ib/gal) (sx) (ftg/sx) {ft~ (ft) (gal/sx) Type (cc) (%) 8 hr ' 24 hr 13 3/8 Tail Type I Cement 12.0 527 2.51 1,322 0 11.28 Fresh 812 0 196 818 Lead Class "G" 12.5 304 2.10 638 3,200 11.92 Fresh 273 769 9 5/8 Tail Class "G" 13.5 249 1.85 460 4,627 9.31 Fresh 0 0 208 981 3 1/2 Tail- Class °G" 15.8 1,087 1.17 1,272 5,100 4.97 Fresh 24 0 226 2,632 Comments: See cement prognosis for details and spacer specifications. Bit Summary Interval - MD TY~ Recommended Estima ted From ft) To ft) Size (in) Manufacturer Model No. IADC WOB (kips) RPM. Rotating Houna ROP {ft/hr 0 1,712 16 Christensen MX-1 115 1 - 4 80 - 350 1,712 5,627 12 1/4 Christensen MX-C1 117 2 - 5 80 - 300 5,627 7,987 8 1/2 Christensen HCM605 M323 Up to 25 Motor Comments: If a second bit is necessary for the 12 ~/<" hole a MX-C3 (IADC 137) should be used to finish this section. Back up bits for the 8'/z" hole section will consist of mill tooth and TCI tricone bits. See bit prognosis for additional information. Hydraulics Summary Rig mud pumps available are shown below. Max Press ~ Displacement Linea ID Stroke ~% W P 95% eff ' Max Rate Hole Sections Used Qty Make Model (in) (in) (psi) (gaUstroke) {spm/gpm) On 5 8 2,597 2.04 125 / 255 Surface 3 National Oil Well A600PT 5 8 2,597 2.04 125 / 255 Intermediate 5 8 2,597 2.04 125 / 255 Production Page 12 of 13 • Tabulated below are the expected flow rates, standpipe pressures and nozzle sizes for each hole section. bole Standpipe Min Nozzle Depth-MD Size Pump Rate Pressure AV ECD Size: ft (in) ( ( i) (fpm tb/ (32"s) Ra-narks 3-18's 0 - 1,712 16 650+ 1,500 69 1-15 1,712 - 5,627 12 1/4 662 2,000 130 6 - 13's Actual Data from CLU 8 (G~ 6,722' MD) 5,627 - 7,987 8 1/2 477 1,400 247 5 - 15's Actual Data from KBU 11-8X (~ 7,659' MD) Comments: See separate hydraulics calculations. Annular velocities in the 16", 12'/a", and 8'/z" holes were calculated using 5" drillpipe. 5" drillpipe should be used to drill all hole sections to maximize hole cleaning, while minimizing stand pipe pressure. Formation Intearity Test Procedure Surface and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: 1. Dri1120' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Page 13 of 13 Marathon Oil Well KBU 11-7 Diverter 2i 1/4" 2M Diverter ~ 16" Automatic Knife Valve Diverter Spool 16" Diverter Line • Marathon Oil Well KBU 11-7 BOP Stack 13 5/8" 5M Cross To Gas Buster X t 2 9/16" 10M Swaco Hydraulically Operated Choke I °~f x ~x~~x ~ ~ 3" 5M Valves Marathon Oil Well KBU 11-7 Choke Manifold ~ To Blooey Line Bleed off Line to Shakers X I °~~ X I °~~ I x ,~ x x 0 00 °° ~ X X X 3 1/8" 5M Manually Adjustable Choke From BOP Stack i Surface Use Plan for Kenai Beluga Unit, well KBU 11-7 Surface location: Anticipated at 490' FSL, 1,066' FWL, Sec. 6, T4N, R11 W, S.M. 1) Existing Roads Existing roads which will be used for access to KBU 11-7 are shown on the attached map. Kenai, Alaska is the nearest town to the site and is also shown on the map. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access KBU 11-7. 3) Location of existing wells Well KBU 11-7 will be drilled on Kenai Gas Field (KGF) pad 14-6. A pad drawing is enclosed that shows existing wells and the proposed location of KBU 11-7. 4) Location of existing and/or proposed facilities The locations of existing production facilities in the KGF pad 14-6 are shown on the enclosed pad drawing. A flowline will be installed from the KBU 11-7 wellhead to an existing line heater and separator. 5) Location of Water Supply A water supply well exists on the pad that KBU 11-7 will be drilled from. This is shown on the pad drawing. 6) Construction Materials No construction is planned on the pad. The recent pad expansion has already been completed and is sufficient. 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The cuttings and excess mud will be hauled to Pad 41-18 of the Kenai Gas Field for disposal into Well KU 24-7, a Class II disposal well (AOGCC Disposal Injection Order No.9, Permit #81-176). b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be hauled to Pad 34-31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7-194). C d) Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. e) Sewage Sewage will be hauled to the Kenai sanitation facility. 8) Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. S & R will collect and transport sanitary wastes to their ADC approved disposal facility. No additional structures will be necessary. 9) Plans for reclamation of the surface KBU 11-7 will be drilled from an existing pad. Reclamation of the pad will occur after the abandonment of KBU 11-7 and the other existing wells on the pad. Approval of the plan of reclamation will be obtained from CIRI Native Corporation prior to any reclamation work beginning. 10) Surface ownership The surface owner of the land in the Kenai Beluga Unit is the CIRI Native Corporation. 11) Operator's Representative and Certification I hereby certify that I, or persons under my direct supervision, have inspected the proposed drill site and access route; that I am familiar with the conditions that currently exist; that the statements made in this plan are, to the best of my knowledge, true and correct; and that the work associated with operations proposed herein will be performed by Marathon Oil Company and its contractors and subcontractors in conformity with this plan and the terms and conditions under which it is approved. This statement is subject to the provisions of 18 U.S.C. 1001 for the filing of a false statement. Date: / / / Name and Title: Willard J. Tank, A anced Senior Drilling Engineer Marathon Oil Company P.O. Box 3128 Houston, TX 77253 (713) 296-3273 I I ~ ~ ~I~ ~I~ SECTION 6 x=271,907.i7r Y =-2,362, 654.56 1 TC)P 6"' PIPE EL.=62.52" GRC~uN~~ E--.=~1.5' TCP 2" POPE EL.=62.41' ~-D_I ~ c~o-~ ~~~~ i WELL K.B.U. 11-7 --"- ---__ 18" CONDUCTOR PIPE 8' D1A. WELL CELLAR ASP ZONE 4 NAD27 N: 2362537.28 E: 271988.97 LAT: 60°27'38.876" N LONG: 151°15'47.584" W FWL = 1066' FSL = 490' ELEV = 66.16' (MSL) SECTION 6, TOWNSHIP 4N K.g_~,!{, 21..-_~; K.B.U. ~G__~ RANGE 11W, SMAK 8' DIA. 1/BELL CEL.L.AP &' ~%~,4. ~.~ELL ~ ELLAR X=272,129.1 i X=272,189.59 Y=2,362,530.20 Y=2,362,527.30 ~~ 1066' FWL i i WI _Z .J ZI _OI W I I 1~6 --+- 121 7 I KENAI GAS FIELD ~._ PAD 14-6 ~~ ~t c~-~..~~•r.~ K.D.U.-1 14.5° ~ SILO 18_G~'X18.0' ~tl-?REF SIOc 0 GUARD PIPE X=271,8436.34 Y=2„362,462.91 t^~ATER WELL 8" CASING `~ ~" ' K.t.. 2 i -7 lc' ~ s{Lc X=271,928.94 Y= 2,362,414.06 J O d' r\.~ E. 1`T _._~ ~(~ 1 ~' ~ iNELL ~QIf fiJE X= 271, 876.24 Y=2,.362, 306.`;6 NOTES 1. BASIS OF COORDINATES IS U.S.C. & G.S. TRI STATION AUDRY IN A.S.P. ZONE 4. (NAD 27) AVERAGE CONVERGENCE OF POINTS SHOWN:01°5'58". 2. AUDRY LOCATION: LAT: 60°30'50.559"N LONG: 151 °16'37.445"W NORTHING = 2,382,045.42 FASTING = 269,866.75 K.tJ. 14 X--fa t~LL ;-~ouSE X==272,0Ea2.87 Y== 2, 362, 471. ~+6 ;~.~~. ~...__.. WELL ~~ ~ x= 2 r: L~ X=272,221.84 Y-=2,362,453.5 K.U. 23-7 ~~~8'~SfLO X-272,079.41 Y=2, 3f>2, 37 rr .79 ~ ~ ~ _ _ SECTION LINE _-~ ~~~ ~ - ~ ~~~_~ K K.B.U. 23-6X WELL FlOUSE WELL Niit~~J>_ x=272,1 ~2.3~ X-272,122.20 Y=?,362.354.04 Y= 2, 36 `L, 3 37. 41 NORTH SCALE 0 60 120 FEET ' ` - ~ . ~TA~ T PROJECT REVISION: 7 M 1-MJ AnIK~[A',~14.1~^Vlll~,l DATE: 10I10/OS 0~ ~~~Y KENAI GAS FIELD PAD 14-6 WELL K.B.U. 11-7 DRAWN BY: CRM ARATNON ASBUILT SURFACE LOCATION DIAGRAM Ai<A~A BBt80N scALE: , ° = so, PROJECT NO. 05301 Consultin Grou ENGINEERING/MAPPING/SURVEYING/TESTING BOOK NO. 04.15 9 P P.O. BOX 468 SOLDOTNA, AK. 99869 LOCATION McLane esting VOIEMAIL~SAMCUINE@MCLANECGCOM2~ S6 T4N R11W SEWARD MERIDIAN, ALASKA SHEEP ~ oP ~ NORTH ' ; _ _ --- -- - ,perne ~_ ,,` . 4~+ -~ l •«, _ _ ...---~I 60'30• ' ~~ _------ Gas_ _'p-- _ 'Gra~6~a ~~~I r,' •••2 25 ~, `-~- ` ~. ~~ ~ Pad 33--30 ~ u u ... _ ..-.._- , _~ ` ~ I .~iP o P P Y Lan 4 '~~ ~i~ i ~ ~~f Privat4:~'~toad _J`~ •~ i~ ~`~..._ ~s3~oaoo ., 1 ~ ; ~-.._~~_ t.~ Pad 43-32 ' `~~; t*'~. ~~ ~ / Landing •~~~, `•~-9 Pad 3 4 - 3 1) . _,: Stripe t ~. __!~Gas Weiia Tr _- .I .o ,•: ~:•- ~"T"~`r KENAI GAS FIELD •~ ~ li 6 5 4 ~' r~ ., *Pits ~~~..,. ~ .w ~ ~ ..,~~ -g °- -,~- ~....~ • .ca i -.ow• ~~~ •. • IPa 14 l Pad• 33-1~ I ^ I y j~ Pad 41-7 I • ~~ Pad 14-4 ~~. ~ ~• Landing'q~~ • ~ Project Location ?: G ~ st"0 ~ • .~ 7 8 9 ` lU 11 :~ ~~ ! Privatsb Road ~~ ~, .. Y p a Pad 41_,8 ~ < ~, ~z Echo ~ ~,.~,,. t a a - - ! r. i "' ~ " w -, lrirl~e _ ~ s+ ~ 14 C ~ ~ ., r. ' ~~ ~ ~ . r COOK INLET ~ P4-18 ~~ ~/°°'', ~~"~ ~' _ 1i ---. ~ a.~ , , •' Abandoned ~ ' ~,.ss'~ . ~ '~•"~,,°~"~-.~ ` " 'x ~ ~~ `~ ~ ~ G.s ~., ' ~ - ~°`~~-~--~~y _. - s,~ , Lending F` _ Strip • ~ - Kenai Unlt Bouedary `~ -`~-l "';' ~ .%~ . ,- ,, _ ~ Kalifoneky f ~ ~ ...' ? I • !I.1 .I _ . -. 1 ~ ._ ._~. f , i ~ !'' G I -t I~ I [V r, ' .... •._ •~j6 ~ I._ ReJleetir»1 ''4~`f' 34 35 31 ,° 32 sy Lake . :. ••- b _ J Kasilof River ~- 1~ ~ - • ~~ .-~ ~ ~~ ~~_ L~f~ '~ • b'S ' Q r_... _ _r scrip ' ~ j .. Source Map: USGS. 1951 Kenai, Alaska B-4. 1:88.380 SCALE 1.63360 , r• 4 Mlir ~~ ----. ~_r___---- - ~-- --..i-- -~.:_ __ -.- -. ~ vxn ~ 'loin rrrn gooo :7aao Isaoo teams ~u,cn rrcr I 1 n 1 7 1 < 4 RIIOMEtEeS E3'13Ti i.i i i. i.__. "' =~-=1_ _ - 1-'-~__ =.. __.t __ _ -. .._L'.'~ =;-T_"' Marathon Oil Company Kenai Gas Field Area Map O iluya.6(iF .il ee ~(qyp¢ • + ~r T5N-R111N 4•-; urn ~r ~ eouw~~-~~r ._.~ ~. + -~~ 1 ~~` ~~~ ~~~~ BelupalUpp~er Tyonek C ampletion ALAS ,,~ w -I- e~ r ~~ ! i~ ^ i r~J . I + + + •! +- I i ~._. ~ r FORn~r,~TlOH ' ti~r~r~~ ~ C.1_ .104 i~ 1 r ^ r,iiLE rv1AF~AT'Ht:ar•J i::a L ~_~_;r.1=~~JY AN+CFif7,R.A~tQ ,4 L.0.'; M: ~, NF( u:if~~ GDNFtDENTL4L ~~~ ~ "F, ~- ~ KENA I FIELQ K8U 77-T - - tvcatian ~t-,~t~~ x~rx ,~„~~r. GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT ! ~ °o -400 N I _~ 0 _N c~ ~ 400 800 1200 1600 zooo 2aoo .-. 2800 •+ v 3200 t r+ a tv ~ 3600 V 4000 d ~ aaoo H v a8oa 5200 5600 6000 6400 6800 7200 7600 8000 MARAT~ION Oil Company OCattOn: Cook Inlet, Alaska (Kenai Penninsula) IOt: Slot# KBU11-7 Field: Kenai Gas Field Well: KBU11-7 Installation: Pad 14-6 Wellbore: KBU11-7 Ver 1 MARAiHUN ~~,~„_,g~ft East (feet) -> -600 -400 -200 -0 200 400 ted nner Date 26-0ct-2005 Plot erence is KBU11- er . Ref wellpath is KBU11-7 Ver 1. KOP Coordkrates are In teat referenge Slotlf KBU11-7. True Vertical Depths are reference Rfg Datum. 4.00 Measured Oepihs are reference Rig Datum. Rig Datum: Glader 1 6.00 Rig DaWm to mean sea level: 87.00 ft Plol North is ali ned to TRUE Nonh. DLS: 2.00 deg/100ft 16.00 ~~. 20.00 ~ ~ EOC ~ ~ 24.00 13 3/8" Surface casing INTEQ KOP 13 3/8" Surface casing ~ ~ ~ EOC End of Tangent 9 5/8" Intermediate casing 3 1/2" Liner End of Tangent KBU11-7 - M/Beluga - 10/25/05 20.24 KBU11-7 - TD -10/25/05 16.24 DLS: 2.00 deg/100ft 8.24 Beluga Begin Core Tangent U5/U6 Beluga End Core Tangent I 2.00 9 518' Intermediate casing d ~ End Drop KBU11-7 - M/Beluga - 10/25/05 Lower Beluga KBU11-7 - TD -10/25/05 Tyonek `3 1/2" Liner ro J 1~ 200 0 -200 -400 -so0 ~ Z O -800 ~ s ,-. -1000 ~ v -1200 -laoo rn -1600 g -1800 ,' 0 WELL PROFILE DATA Point MD Inc Asl TVD North East deg/100R V. Sect Tie on 0.00 0.00 177.79 0.00 0.00 0.00 0.00 0.00 KOP 500.00 0.00 177.79 500.00 0.00 0.00 0.00 0.00 End of Build 1711.87 2424 177.79 1876.05 -252.34 9.76 2.00 25252 End of Hold 4176.47 2424 177.79 3923.40 -128:1.35 48.85 0.~ 1264.29 Target 5088.34 6.00 177.79 4800.00 -1500.00 58.00 200 1501.12 End of Hold 5326.65 6.00 177.79 5037.00 -1524.89 5&96 0.00 1526.03 End of Drop 5626.65 0.00 177.79 5336.45 -1540.57 59.57 2.00 1541.72 T.D. 8 End of Fold 798720 0.00 177.79 7697.00 -1540.57 59.57 0.00 1541.72 -400 -0 400 800 1200 1600 2000 ~,~, ~,=2~~rtical Section (feet) -> Arlmuth 177.79 whh reference 0.00 N, 0.00 E from Sbtff KBU11.7 MARATHON Oil Company,Slot# KBU11-7 Pad 14-6, MJkIli4THON Kenai Gas Field,Cook Inlet, Alaska (Kenai Penninsula) PROPOSAL LISTING Page 1 Wellbore: KBU11-7 Ver 1 Wellpath: KBU11-7 Ver 1 Date Printed: 26-Oct-2005 ri.~ BAKER Hu6HEs INTEQ Wellbore KBU11-7 Ver 1 25-Oct-2005 26-Oct-2005 .Well lot Name Northin Grid Latitude North East installation Pad 14-6 270993.1910 2361975.0460 AK-4 on NORTH AMERICAN DATUM 1927 datum True Field Comments All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Glacier 1 87.Ott above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 177.79 degrees Bottom hole distance is 1541.72 Feet on azimuth 177.79 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON O[I Company,Slot# KBU11-7 Pad 14-6, iMARATHON Kenai Gas Field,Cook Inlet, Alaska (Kenai Penninsula) r~ PROPOSAL LISTING Page 2 Wellbore: KBU11-7 Ver 1 Wellpath: KBU11-7 Ver 1 Date Printed: 26-Oct-2005 ri.~ BAKER Nu6HEs INTEQ VHe ll ath Gr id 'Re ort MD[ft] Inc[de91 Azi[desl TVD(it] Nortl~[ftl East[ftI Dogleg d 100ft 1ertical Se ft Fasting Northing 200.00 0.00 177.79 200.00 O.OON 0.00E 0.00 0.00 271988.97 2362537.28 500.00 0.00 177.79 500.00 O.OON 0.00E 0.00 0.00 271988.97 2362537.28 800.00 6.00 177.79 799.45 15.68S 0.61E 2.00 15.69 271989.28 2362521.59 1100.00 12.00 177.79 1095.62 62.56S 2.42E 2.00 62.60 271990.19 2362474.69 1400.00 18.00 177.79 1385.27 140.11S 5.42E 2.00 140.21 271991.70 2362397.10 1700.00 24.00 177.79 1665.21 247.49S 9.57E 2.00 247.67 271993.79 2362289.66 1900.00 24.24 177.79 1847.60 329.51 S 12.74E 0.00 329.76 271995.39 2362207.60 2200.00 24.24 177.79 2121.15 452.57S 17.50E 0.00 452.91 271997.79 2362084.47 2500.00 24.24 177.79 2394.71 575.64S 22.26E 0.00 576.07 272000.18 2361961.35 2800.00 24.24 177.79 2668.26 698.70S 27.02E 0.00 699.22 272002.58 2361838.22 3100.00 24.24 177.79 2941.82 821.76S 31.77E 0.00 822.38 272004.98 2361715.09 3400.00 24.24 177.79 3215.37 944.83S 36.53E 0.00 945.53 272007.37 2361591.97 3700.00 24.24 177.79 3488.93 1067.89S 41.29E 0.00 1068.69 272009.77 2361468.84 4000.00 24.24 177.79 3762.49 1190.95S 46.05E 0.00 1191.84 272012.17 2361345.71 4276.47 22.24 177.79 4015.29 1302.77S 50.37E 2.00 1303.74 272014.34 2361233.84 4576.47 16.24 177.79 429 .40 1401.49S 54.19E 2.00 1402.54 272016.27 2361135.06 4876.47 10.24 177.79 4590.30 1470.11 S 56.84E 2.00 1471.21 272017.60 2361066.42 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Glacier 1 87.Ott above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 177.79 degrees Bottom hole distance is 1541.72 Feet on azimuth 177.79 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Company,Slot# KBU11-7 Pad 14-6, iMARATHON Kenai Gas Field,Cook Inlet, Alaska (Kenai Penninsula) • PROPOSAL LISTING Page 3 Wellbore: KBU11-7 Ver 1 Wellpath: KBU11-7 Ver 1 Date Printed: 26-Oct-2005 N.i1'~ s N ~! IIES INTEQ Well ath Gr id Re ort a(ft) Inc(deg) Azi(deg] TVD[ftj Nor~ft) Eastjftj 1 ft Vertical ~ ft Easting Nalhing 5088.34 6.00 177.79 4800.00 1500.OOS 58.00E 2.00 1501.12 272018.19 2361036.51 5300.00 6.00 177.79 5010.50 1522.11 S 58.85E 0.00 1523.24 272018.62 2361014.39 5526.65 2.00 177.79 5236.47 1538.83S 59.50E 2.00 1539.98 272018.94 2360997.66 5800.00 0.00 177.79 5509.80 1540.57S 59.57E 0.00 1541.72 272018.98 2360995.91 6100.00 0.00 177.79 5809.80 1540.57S 59.57E 0.00 1541.72 272018.98 2360995.91 6400.00 0.00 177.79 6109.80 1540.57S 59.57E 0.00 1541.72 272018.98 2360995.91 67 0.00 0.00 177.79 6409.80 1540.57S 59.57E 0.00 1541.72 272018.98 236099 .91 7000.00 0.00 177.79 6709.80 1540.57S 59.57E 0.00 1541.72 272018.98 2360995.91 7300.00 0.00 177.79 7009.80 1540.57S 59.57E 0.00 1541.72 272018.98 2360995.91 7600.00 0.00 177.79 7309.80 1540.57S 59.57E 0.00 1541.72 272018.98 2360995.91 7 .00 0.00 177.79 7609.80 1540.57S 59.57E 0.00 1541.72 272018.98 2360995. 1 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Glaser 1 87.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 177.79 degrees Bottom hole distance is 1541.72 Feet on azimuth 177.79 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Company,Slot# KBU11-7 ~~ Pad 14-6, MARATHON Kenai Gas Field,Cook Inlet, Alaska (Kenai Penninsula) PROPOSAL LISTING Page 4 Wellbore: KBU11-7 Ver 1 Welipath: KBU11-7 Ver 1 Date Printed: 26-0ct-2005 ri.r B NU6NE5 INTEQ Comments. 500.00 500.00 O.OON 0.00E KOP 4999.70 4712.00 1489.38S 57.59E Belu a 5326.65 5037.00 1524.89S 58.96E End Core Tan ent 7512.20 7222.00 1540.57S 59.57E T onek Hole Sections Diameter in Start .MDR Start R Start N' ft Start Eas ft End M ft End ND R End North ft Start Eas ft We~b~e 8112 5627.20 5337.00 1540.57S 59.57E 7987.20 7697.00 1540.57S 59.57E KBU11-7 Ver 1 Casin s Name Top Top Top Top. Shoe Shoe Shoe Shoe Wellbore 133/8" Surface 0.00 0.00 O.OON 0.00E 1712.00 1676.17 252.39S 9.76E KBU11-7 Ver 1 9 5/8" Intermediat casin 0.00 0.00 O.OON 0.00E 5627.20 5337.00 1540.57S 59.57E KBU11-7 Ver 1 Tar ets KBU11-7 - TD - 1546.82S 60.53E 7697.00 N60 2723.64 W151 1546.37 272019.82 2360989.65 6-Oct-2005 KBU11-7- MlBeluga - 1546.82S 60.53E 5362.00 N60 2723.64 W151 1546.37 272019.82 2360989.65 6-Oct-2005 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Glacier 1 87.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 177.79 degrees Bottom hole distance is 1541.72 Feet on azimuth 177.79 degrees from Wellhead Cakxalation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated ~ • ~~~~ BeKEQ MARATHON Oil Company OCatlOn: Cook Inlet, Alaska (Kenai Pennlnsula) Ot: Slot# KBU11-7 Field: Kenai Gas Field Well: KBU71-7 Installation: Pad 14-6 Wellbore: KBU11-7 Ver 1 Scale 1 cm = 20 ft <_ West (feet) : East (feet) -> -120 -80 -40 0 40 80 121 40 ® ~ + ~ ~ 0 ~ ® ~ N w0 .~ ~ ~ 1000 + ~ to59 tto0 soo ++so t9so _$Q ow ® tz99 ®~ zm ®®~~ -120 "°° ~ ,°~ ~ ,.99 -160 so -200 tsw ~~.~ taoo e5a 909 ~ ,eoo ~~ 9eo~ Ku,. -240 +eso z0 zo t zoo z, -280 21 „59 A 2 9 ,eo9 /\ 2200 d -320 ,900 2000 aoo n 90 ,900 ~ -360 ~° O '°~° Z -400 000 O50 -440 2,00 2130 -480 2200 2250 -520 900 -560 350 2.00 -600 250 2500 -640 2550 N 800 II -680 2950 2]00 -720 , -120 -80 -40 -0 40 80 12( Scale 1 cm = 20 ft <- West (feet) :East (feet) -> 40 -200 0 -300 -40 -400 -$Q -500 -120 -soo -160 -700 -200 -800 -240 -900 -280 -tooo A e -320 ~ -ttoo S -360 ~ -t 200 tD -400 -1300 -440 -taoa -480 -1500 -520 -tsoo -560 -too -600 -tsoo -640 -tsoo -680 II -zooo E r -720 N ~ -2100 0 ~N hAARATHpN ~1e1an=so" East (feet) -> -200 -100 0 100 200 300 .o n kU1~ ~ 1r ~ X80 , 1900 48 „99 ,800 :, :99 '°° ,~ xa9 300 000 X00 00 500 1900 900 800 200 00 2 000 'Rp~ 300 J too 00o z2oo eoo too Soo zoo 2.00 2100 900 eoo Sao 900 zeoo 900 000 3100 zoo 9zoo v n >.oo .-. ~~ w d ,a99 w ... 9,00 L ~ ,e99 O Z 4900 aooo +too X200 X300 aoa 1800 X900 /100 .999 „ 9,00 -200 -100 0 100 200 30( ~,~,~,_~" East (feet) -> -200 -300 X00 -500 -soo -700 -800 -600 -1000 A 9 -ttoo Z O S -1200 tD -1300 -1400 -1500 -tsoo -t goo -taoo -t soo -2000 I I -ztoo v, 0 ~~~~ MARATHON Oil Company MV~rf~ES oCatlon: Cook Inlet, Alaska (Kenai Penninsula) lot: Slot# KBU71-7 INTEQ Field: Kenai Gas Field Well: KBU11-7 Installation: Pad 14-6 Wellbore: KBU11-7 Ver 1 MARATHpN Defe ed ' PB-OCl-4005 Pbl rebrMx,! b KBU11-7 Vsr 7. Ref welbem b IrBUtt-] Ver 1. CooNlrrbe ere F feef ralaranca SIdM IrBU11-]. True VeNCeI OaPtln era rdarwrce Rig Oaium. MeesuroE OePtlu n rofarente Rlg Dalum. Rig Oebm'. Gbdsr 1 Rig Dabm b mean W level: B).00 K. Pbl Nortl1 le allpraO b TRVE Rorift. Ellpee dmensbn an of PROJECTED enor ellpeoie EIII ere ecabE to 8515% 1 D caMEence I TRUE NORTH ,1 3 800 1800 Y000 400 350 0 10 340 20 200 1200 2100 330 1700 30 2300 1700 1 0 ~ 1900 1800 2800 320 40 1 0 2700 310 1600 1 0 2000 0 1800 1 0 300 900 1 ~ 60 1 1 0 1 1700 290 0 1700 1400 1000 1700 3000 70 1 1 0 160D 1 ~ 280 0 ~ 1 900 80 1300 1 0 1200 270 2 0 1 0 1 0 1 0 1 0 1 0 6 4 + 0 1 0 1 0 1 0 1 1 0 2 0 90 1100 1400 20 150 °'i 1 00 1000 ~ 1 260 1 100 900 1500 1400 7 1200 1 250 v 110 1 0 1100 300 240 ~ 1 1100 120 1300 1 900 0 1000 230 11 800 130 1200 900 1 0 1000 ~ 220 11 ~ 900140 700 1 0 800 20~ 2 0 150 !00 200 160 WO 700 190 180 170 500 Normal Plane Travelling Cylinder - Feet All depths shown are Measured depths on Reference Well MARATHON Oil Company J~ KBU11-7 Ver 1, KBU11-7 Ver 1 iNARATNQN Slot# KBU11-7, Pad 14-6 CLEARANCE LISTING Page 1 Date Printed: 26-Oct-2005 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) Ellipse separations are reported ONLY if BOTH wells have uncertainty data Only Depth and Magnetic Reference Field error terms are correlated across tie points Proximities beyond ft with expansion rate of ft/1000ft are not reported Cutoff is calculated on CENTRE to CENTRE distance Summary data uses Closest Approach clearance calculation for all minima Hole size/Casings are NOT included Hole size/Casings are NOT subtracted from Centre-Centre distance Ellipses scaled to 2.OOstandard deviations. Closing Factor Confidence limit of 99.80% Errors on Ref start at Slot Permanent Datum (0.00) Report uses Revised: (D-C)/E Factor Calculation rr.~ BANIU(E6NE5 INTEQ Wellbore Well KBU 11-7 25-Oct-2005 to . . , L n i de orth Ea t .Installation .Field Kenai Gas Field 270993.1910 2361975.0460 AKA on NORTH AMERICAN DATUM 1927 datum True n rn Offset We~lame Offset. Wellbore Offset SIB Offset Structure Mil~xxn Dietanr~ MD[ft] Diverging Frorr~ft] E~ipse :Separation ENipse MD[ftJ Clearance Factor Clearance MD[ftJ KU21-7 KU21-7 slot #KU 21- Pad 14-6 53.76 1511.71 1511.71 39.76 1525.59 3.80 1541.99 KBU 23-7 KBU 23-7 Slot #KBU Pad 14-6 55.73 1449.43 2900.00 48.99 1449.43 7.01 3133.20 KU14X-6 KU14X-6 slot #KDU 8 Pad 14-6 69.17 1127.51 1127.51 61.66 1131.89 8.79 1213.91 KBU23X-6 KBU23X-6 slot#KBU 23X-6 Pad 14-6 127.93 1536.85 1536.85 117.64 1541.99 12.21 1591.21 KBU24-6 KBU24-6 Slot# KBU24-6 Pad 14-6 162.38 1520.33 1520.33 156.57 1525.59 26.38 1640.42 KBU22-6 KBU22-6 Slot #KBU22-6 Pad 14-6 200.21 295.65 295.65 198.97 311.68 68.04 984.25 KBU31-7 KBU31-7 slotfgCBU Pad 14-6 228.82 1052.21 1052.21 222.82 1052.21 30.26 1656.82 KBU31-7 KBU31-7Rd slot #KBU Pad 14-6 228.82 1052.21 1052.21 222.82 1052.21 30.26 1656.82 All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Glacier 1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1D) Prepared by Baker Hughes Incorporated MARATHON Oil Company KBU11-7 Ver 1, KBU11-7 Ver 1 iYIARAiHON Slot# KBU11-7, Pad 14.6 • CLEARANCE LISTING Page 2 Date Printed: 26-Oct-2005 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ri.r B N EQ~HES INTEQ Reference Wellbolre Surve Tool Pro ram Planned 7987.20 Navi Trak Standard All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Glaser 1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated MARATHON Oil Company KBU14-7 Ver 1, KBU11-7 Ver 1 MARATNt~N Slot# KBU11-7, Pad 14-6 • CLEARANCE LISTING Page 3 Date Printed: 26-0ct-2005 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ri.~ B H 6HE5 INTEQ .'Cl earance Data Reference MD[ft] Reference TVD[ft) Reference North[ft] Reference. ' Eas#[ftj Offset Well Offset MD[ft] Offset TVD[ft] - Offset North[ft] Offset East[ft] Angle From Highside Closest Approach Distance Ellipse Separation [ft] 0.00 0.00 O.OON 0.00E KBU 23-7 0.04 0.04 164.88S 33.61E 168.5 168.27 168.27 300.00 300.00 O.OON 0.00E KBU 23-7 300.38 300.35 164.24S 36.80E 167.4 168.31 167.14 600.00 599.98 1.74S 0.07E KBU 23-7 600.05 599.88 162.O6S 45.70E -13.7 166.68 164.55 900.00 898.70 27.86S 1.08E KBU 23-7 900.01 899.53 157.42S 58.55E -21.9 141.74 138.59 1200.00 1193.06 85.03S 3.29E KBU 23-7 1194.62 1194.07 153.45S 61.41 E -39.1 89.78 85.18 1449.43 1432.14 155.79S 6.02E KBU 23-7 1432.52 1431.96 154.16S 61.73E -89.4 55.73 48.99 1700.00 1665.21 247.49S 9.57E KBU 23-7 1675.03 1673.36 174.24S 66.95E -138.6 93.40 85.63 1900.00 1847.60 329.51 S 12.74E KBU 23-7 1873.29 1868.79 206.52S 74.54E -150.7 139.26 130.53 2200.00 2121.15 452.57S 17.50E KBU 23-7 2181.97 2166.82 281.67S 100.10E -152.5 195.24 184.14 2500.00 2394.71 575.64S 22.26E KBU 23-7 2510.05 2469.20 402.94S 135.93E -146.8 219.77 204.99 2800.00 2668.26 698.70S 27.02E KBU 23-7 2828.25 2731.61 576.34S 179.90E -130.0 205.81 184.53 3100.00 2941.82 821.76S 31.77E KBU 23-7 3114.88 2932.88 771.36S 238.26E -99.5 212.74 182.50 3300.00 3124.19 903.81 S 34.95E KBU 23-7 3293.37 3042.96 907.15S 274.23E -79.4 252.72 219.59 Offse# Welibore Surve Tool Pr rams KBU 23-7 KBU 23-7 MWD <0-9320> 9320.00 Navi Teak M Corrected All data is in Feet unless othenaise stated Coordinates an: from Slot and ND's are from Rig (Glacier 1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated ~i MARATHON Oil Company KBU11-7 Ver 1, KBU11-7 Ver 1 iNAR11iHON Slot# KBU11-7, Pad 14-6 • CLEARANCE LISTING Page 4 Date Printed: 26-0ct-2005 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ri.~ B N EAR ~ 1NTE(t :C learance Data Reference MD[ft] Reference ND(ft] Reference North[ft] Refsrence East[ft] Offset Well Offse MD[ft] Offset ND[ft] Offset Norlti[ft] Offset East[ft) Angie From Highside Cbsest Approach Distance Ewe Separation [ft] 0.00 0.00 O.OON 0.00E KBU23X-6 5.74 -0.26 197.30S 137.04E 145.2 240.22 240.11 300.00 300.00 O.OON 0.00E KBU23X-6 305.82 299.81 199.37S 135.55E 145.8 241.08 239.06 600.00 599.98 1.74S 0.07E KBU23X 605.64 599.61 201.02S 133.46E -31.6 239.80 235.87 900.00 898.70 27.86S 1.08E KBU23X-6 904.66 898.63 201.80S 132.42E -35.1 217.96 212.11 1200.00 1193.06 85.03S 3.29E KBU23X-6 1198.85 1192.82 202.53S 131.87E -46.2 174.18 166.14 1500.00 1479.82 172.64S 6.67E KBU23X-6 1485.35 1478.96 190.69S 134.38E -80.2 128.97 119.03 1574.80 1549.77 199.12S 7.70E KBU23X-6 1551.19 1544.39 183.56S 135.83E -93.5 129.18 118.61 1700.00 1665.21 247.49S 9.57E KBU23X-6 1652.61 1644.54 167.94S 138.96E -114.3 153.29 141.90 1900.00 1847.60 329.51 S 12.74E KBU23X-6 1800.00 1788.26 136.65S 147.76E -135.8 242.79 230.59 Offset Weilbore Surve TAI Pro rams KBU2~X-6 KBU23X-8 GMS <0-6950'> S95Q.00 Standani All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Glaser 1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Cak;ulation method uses Minimum Curvature rr>ethod Confidence Limit of 95.45 (1D) Prepared by Baker Hughes Incorporated • MARATHON O[I Company J~ KBU11-7 Ver 1, KBU11-7 Ver 1 MARATHON Slot# KBU11-7, Pad 14.6 • CLEARANCE LISTING Page 5 Date Printed: 26-0ct-2005 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ~/.'rr B HU6NES INTEQ C learance Data Reference MD[ft) Reference TVD[ftj Reference North[ftj Reference East[ftj Oft We#1 .Offset MD(ft) Offset ND[ft] Offset Nord~[tt} Offset East[ft] Angle From Highside Closest Approach Distance Ellipse Separation [ffj 0.00 0.00 O.OON 0.00E KBU31-7 8.18 0.18 79.24S 234.44E 108.7 247.47 247.34 300.00 300.00 O.OON 0.00E KBU31-7 312.12 304.11 78.60S 232.66E 108.7 245.62 243.87 600.00 599.98 1.74S 0.07E KBU31-7 610.42 602.39 77.43S 229.71E -69.6 241.80 238.18 900.00 898.70 27.86S 1.08E KBU31-7 906.32 898.28 77.34S 227.85E -75.6 232.11 226.68 1100.00 1095.62 62.56S 2.42E KBU31-7 1094.38 1086.27 80.56S 230.77E -82.9 229.25 223.06 1400.00 1385.27 140.11S 5.42E KBU31-7 1361.80 1352.14 87.02S 257.31E -97.0 259.55 251.55 1656.82 1625.64 230.24S 8.90E KBU31-7 1619.38 1606.65 105.05S 291.31E -108.8 309.50 299.27 r I r m W Wetitwre M urve T KBU31-7 KBU31-7Rd MWD <5814-7575> 7575.00 ISCWSA MWD Basic MWD - ISCWSA - 28 All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Glaser 1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1D) Prepared by Baker Hughes Incorporated • MARATHON Oil Company J~ KBU11-7 Ver 1, KBU11-7 Ver 1 fYIARATHON Slot# KBU11-7, Pad 14-6 • CLEARANCE LISTING Page 6 Date Printed: 26-0ct-2005 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ~i~r BANIV(E~HES INTEQ Cl earance Data Reference MD[ft] Reference ND[ft) Reference North[ft} Reference East[fy Offset Well Offset MD[ft] Offset ND[ftj Offset North[ft} Offset East(ft] Angle From Highside Closest Approach Distance Eti~e Separation [ft) 0.00 0.00 O.OON 0.00E KBU31-7 8.18 0.18 79.24S 234.44E 108.7 247.47 247.34 300.00 300.00 O.OON 0.00E KBU31-7 312.12 304.11 78.60S 232.66E 108.7 245.62 243.87 600.00 599.98 1.74S 0.07E KBU31-7 610.42 602.39 77.43S 229.71E -69.6 241.80 238.18 900.00 898.70 27.86S 1.08E KBU31-7 906.32 898.28 77.34S 227.85E -75.6 232.11 226.68 1100.00 1095.62 62.56S 2.42E KBU31-7 1094.38 1086.27 80.56S 230.77E -82.9 229.25 223.06 1400.00 1385.27 140.11 S 5.42E KBU31-7 1361.80 1352.14 87.02S 257.31 E -97.0 259.55 251.55 1656.82 1625.64 230.24S 8.90E KBU31-7 1619.38 1606.65 105.05S 291.31E -108.8 309.50 299.27 o r m o Well WeU _ a M rv ool < '> All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Glacier 1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated • MARATHON O[I Company KBU11-7 Ver 1, KBU11-7 Ver 1 MARATHON Slot# KBU11-7, Pad 14-6 CLEARANCE LISTING Page 7 Date Printed: 26-0ct-2005 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) .... BANIUtE6NE5 INTEQ C learance Data Reference MD[ft] Reference ND[ft] Referen North[ft] Reference East[ft] Offset Welk .Offset MD[ft] Offset Np[ft]' Offset North[ft] Offset East[ft] Angle From Highside Closest Approach Distance EN~se Separation [ft] 0.00 0.00 O.OON 0.00E KU21-7 0.00 2.00 124.35S 57.66W -155.1 137.09 137.09 200.00 200.00 O.OON 0.00E KU21-7 197.14 199.13 124.56S 58.81W -154.7 137.74 135.44 500.00 500.00 O.OON 0.00E KU21-7 497.48 499.47 125.30S 59.94W -154.4 138.90 133.38 800.00 799.45 15.68S 0.61E KU21-7 794.92 796.32 137.OOS 51.42W 25.5 132.04 125.29 1100.00 1095.62 62.56S 2.42E KU21-7 1090.81 1089.48 156.97S 17.26W 14.1 96.63 88.28 1400.00 1385.27 140.11S 5.42E KU21-7 1381.35 1373.69 192.22S 31.51E -24.0 59.42 47.31 1525.59 1503.82 181.49S 7.02E KU21-7 1502.90 1492.37 207.52S 52.80E -56.1 5.90 39.76 1700.00 1665.21 247.49S 9.57E KU21-7 1669.11 1654.73 227.82S 81.98E -98.7 75.77 61.18 1900.00 1847.60 329.51S' 12.74E KU21-7 1857.65 1838.74 251.68S 115.49E -121.1 129.20 113.89 2200.00 2121.15 452.57S 17.50E KU21-7 2144.43 2118.81 288.23S 165.15E -133.0 220.94 203.11 2500.00 2394.71 575.64S 22.26E KU21-7 2427.71 2395.55 326.OOS 212.39E -137.9 313.80 293.09 t Wellbore 7001 Pr r ms Well Well Name fvi ft S rve Tool < '> All data is in Feet unless otherwise stated 'Coordinates are from Slot and ND's are from Rig (Glacier 1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated MARATHON Oil Company KBU11-7 Ver 1, KBU11-7 Ver 1 MARATHON Slot# KBU11-7, Pad 146 CLEARANCE LISTING Page 8 Date Printed: 26-Oct-2005 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ri.~ B NU6NE5 INTEQ C learance Data Reference MD[ft] Reference TvD[ft] Reference North[ft] Reference Eaa~[ft] Offset WeU Offset MD[tt] Offset ND[ft] Offset Nortt~ftJ Offset East[ft] Angl® From Highside Closest Approach Distance E~ipse Separation [ff] 0.00 0.00 O.OON 0.00E KU13$ 6.64 -0.36 56.78S 216.59E 104.7 223.91 223.68 300.00 300.00 O.OON 0.00E KU13-6 304.23 297.21 55.81S 219.38E 104.3 226.38 223.30 600.00 599.98 1.74S 0.07E KU13-6 628.51 620.47 35.38S 209.79E -78.9 213.39 209.07 900.00 898.70 27.86S 1.08E KU13f 927.65 913.25 14.65N 175.91E -102.0 180.52 174.86 1000.00 997.47 43.49S 1.68E KU13f 1018.63 1001.03 35.14N 163.63E -113.5 180.06 173.79 1213.91 1206.54 88.43S 3.42E KU13-6 1197.09 1169.90 85.79N 136.42E -137.9 222.22 213.06 1400.00 1385.27 140.11S 5.42E KU13-6 1329.38 1291.59 132.72N 114.38E -152.2 308.36 296. 9 r rv P - rare' W er M urv T < '> All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Glacier 1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Cakxilation method uses Minimum Curvature method Confidence Limit of 95.45 (1D) Prepared by Baker Hughes Incorporated • MARATHON Oil Company KBU11-7 Ver 1, KBU11-7 Ver 1 IyIARATNON Slot# KBU11-7, Pad 14-6 CLEARANCE LISTING Page 9 Date Printed: 26-0ct-2005 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ri.~ B H EAR ~ iN1'li;(1 Cl earance Data Reference MD[ftJ Reference ND[ft] Reference North[ft] Refer®nce East(ftl t?fEsetWell Offsef Mil Offket T~~] Offset North[f-J _ Offset East(ftJ Angle From Highside Closest Approach Distance E~pse Separation [ftJ 0.00 0.00 O.OON 0.00E KU14-6 5.00 0.00 232.85S 108.29W -155.1 256.80 300.00 300.00 O.OON 0.00E KU14-6 304.94 299.95 232.84S 108.36W -155.0 256.82 600.00 599.98 1.74S 0.07E KU14~ 604.38 599.37 232.67S 109.54W 27.6 255.62 900.00 898.70 27.86S 1.08E KU14-6 903.00 897.98 232.22S 112.62W 31.5 233.86 1200.00 1193.06 85.03S 3.29E KU14~ 1197.60 1192.57 231.98S 114.30W 41.7 188.20 1500.00 1479.82 172.64S 6.67E KU14-6 1483.95 1478.92 231.72S 116.11W 67.7 136.26 1700.00 1665.21 247.49S 9.57E KU14-6 1669.23 1ti64.19 231.51S 117.57W 98.4 128.14 1900.00 1847.60 329.51S 12.74E KU14-6 1851.28 1846.23 231.26S 119.25W 126.2 164.54 2200.00 2121.15 452.57S 17.50E KU14-6 2124.61 2119.55 230.89S 121.79W 147.7 261.82 Offset Wellbore Surve Tool Pr rams KU14-6 KU14-6 INCLINATION ONLY No Tad All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Glacier 1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated MARATHON Oil Company ~~ KBU11-7 Ver 1, KBU11-7 Ver 1 IM1ARAiHON Slot# KBU11-7, Pad 14-6 • CLEARANCE LISTING Page 10 Date Printed: 26-0ct-2005 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ~~~~ B H EAR ES INTEQ C learanc® Data Reference MD[ft] Reference ND[ft] Reference North[ftj Reference: East[ft] Offset Well Offset MD[ft] Offset ND[ft] Offset North(ft] Offset East[ftj Angle Fran Higt-side Closest Approach Distance E~pse Separation [ft] 0.00 0.00 O.OON 0.00E KBU24.6 0.44 0.44 179.50S 196.91E 132.3 266.45 266.42 300.00 300.00 O.OON 0.00E KBU24-6 303.05 303.04 178.72S 195.21E 132.5 264.69 263.43 600.00 599.98 1.74S 0.07E KBU24 604.24 604.19 178.10S 190.25E -45.0 259.40 257.10 900.00 898.70 27.86S 1.08E KBU24 904.22 904.05 177.76S 181.82E -48.5 234.87 231.81 1200.00 1193.06 85.03S 3.29E KBU24-6 1199.12 1198.85 176.42S 174.61 E -60.8 194.26 189.86 1500.00 1479.82 172.64S 6.67E KBU24-6 1479.68 1479.34 175.OOS 169.20E -87.1 162.54 156.88 1600.00 1573.17 208.45S 8.06E KBU24-6 1571.41 1571.06 174.31S 169.88E -98.7 165.39 159.19 1700.00 1665.21 247.49S 9.57E KBU24-6 1659.38 1659.00 172.72S 171.72E -110.0 178.67 172.01 1900.00 1847.60 329.51S 12.74E KBU24-6 1830.67 1829.99 167.32S 179.90E -127.8 233.58 226.38 Offset W®Iibore Suroe Tool Pr rams KBU24-6 KBU24-6 MWD W-7500> 75.00 ISCWSA MWD Basic MWD - ISCWSA - 28 JAN 03 OJH All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Glaser 1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated MARATHON Oil Company KBU11-7 Ver 1, KBU11-7 Ver 1 MARATHON Slot# KBU11-7, Pad 14.6 • CLEARANCE LISTING Page 11 Date Printed: 26-Oct-2005 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ri.~ B HVE~R ~ INTEQ C learance Data Reference MD(R] Reference TVD[ftJ Reference North[ftJ Reference Eas~ftJ Offset Well Offset MD[ftJ Offset lYD[ftJ t>ffset Norfh(ftJ Qffset East[ftJ Angle From Highside Closest Approach Distance Else Separation [ftJ 0.00 0.00 O.OON 0.00E KBU22-6 0.16 0.16 6.13S 200.78E 91.8 200.88 200.86 295.65 295.65 O.OON 0.00E KBU22-6 295.67 295.65 4.71S 200.16E 91.3 200.21 199.00 400.00 400.00 O.OON 0.00E KBU22-6 395.17 394.83 2.78N 201.44E 89.2 201.52 199.94 700.00 699.84 6.975 0.27E KBU22-6 677.78 673.96 44.34N 214.67E -100.8 221.97 219.16 984.25 981.95 40.80S 1.58E KBU22.6 906.33 894.01 98.42N 242.48E -114.7 291.80 287.51 Offset Wellbore Surve Tool Pro rams KBU 2-6 KBU22-6 MWD <0-8855> 8855 00 Standard All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Glaser 1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature rr~thod Confidence Limit of 95.45 (1D) Prepared by Baker Hughes Incorporated • MARATHON Oil Company ~~ KBU11-7 Ver 1, KBU11-7 Ver 1 INARAiHON Slot# KBU11-7, Pad 14-6 • CLEARANCE LISTING Page 12 Date Printed: 26-Oct-2005 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ri.~ B H EAR ~ INTEQ C learance Data Reference MD[ftJ Reference ND[ftj Reference North{ft] Ref®rer~ce East{ft] Of~et WTI Offset MD[ft] Offset ND(ft] 't3ffset North[ftj Offset East(ft] Angle From Highside Closest Approach Distance Else Separation {ft] 0.00 0.00 O.OON 0.00E KDU-1 9.00 0.00 77.29S 151.18W -117.1 169.79 168.95 300.00 300.00 O.OON 0.00E KDU-1 309.00 300.00 77.29S 151.18W -117.1 169.79 164.21 600.00 599.98 1.74S 0.07E KDU-1 608.98 599.98 77.29S 151.18W 65.7 169.07 160.94 900.00 898.70 27.86S 1.08E KDU-1 907.70 898.70 77.29S 151.18W 74.4 160.08 149.94 1140.83 1135.50 71.33S 2.76E KDU-1 1144.50 1135.50 77.29S 151.18W 90.0 154.06 139.53 1400.00 1385.27 140.11 S 5.42E KDU-1 1394.27 1385.27 77.29S 151. i 8W 113.0 168.73 148.89 1500.00 1479.82 172.64S 6.67E KDU-1 1488.82 1479.82 77.29S 151.18W 121.7 184.42 162.77 1711.87 1676.05 252.34S 9.76E K -1 1685.05 1676.05 77.29S 151.18W 137.0 237.79 212.71 Offset Wellbore Surve Tool Pr ' rams KDU-1 KDU-1 MSS <0-9895'> 9895.00 Photomechanical Ma netic Standard All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Glacier 1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Ca~ulation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated • MARATHON Oil Company KBU11-7 Ver 1, KBU11-7 Ver 1 INARAiHON Slot# KBU11-7, Pad 14-6 • CLEARANCE LISTING Page 13 Date Printed: 26-Oct-2005 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ri.~ BANIUCE6HE5 INTEQ C learance Data Reference MD[ftj Reference TVD{ftj Reference North[ft] Reference" East[ft} Offset WeN Offset MO[ft] Offset TVD[ft} Offset. North[ft] Offset East[ft] Angle Fnxn tiighside Closest Approach Distance E~pse Separation [ftj 0.00 0.00 O.OON O.OOE KU14X~ 7.92 -0.08 64.40S 75.15E 130.6 98.97 98.85 300.00 300.00 O.OON 0.00E KU14X-6 308.23 300.23 64.97S 75.14E 130.8 99.34 97.17 600.00 599.98 1.74S 0.07E KU14X-6 608.25 600.24 64.79S 74.18E -47.4 97.30 93.29 900.00 898.70 27.86S 1.08E KU14X-6 907.05 899.04 65.25S 72.71E -60.5 80.80 74.96 1127.51 1122.50 68.41S 2.65E KU14X~ 1130.50 1122.49 65.77S 71.77E -90.0 69.17 61.69 1213.91 1206.54 88.43S 3.42E KU14X~ 1214.31 1206.30 66.OOS 71.84E -105.4 72.01 63.82 1500.00 1479.82 172.64S 6.67E KU14X-6 1487.81 1479.79 67.17S 73.84E -143.6 125.04 114.47 1711.87 1676.05 252.34S 9.76E KU14X-6 1685.01 1676.97 68.77S 76.03E -156.1 195.17 182.91 2000.00 1938.78 370.53S 14.33E KU14X-6 1949.69 1941.64 71.25S 77.16E -164.7 305.81 291.30 t eil re rv I P W We M Stuve T E el < > < > All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Glaser 1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated 1 - ~ - '~` File Edit Profiles Table Tods Offset Data Units YJirdow Help J Welbore Details) Offset Data WeApatl~Targets) Comments Ert«s, Hole SectioruJCasings~ S F JJ iJ Name K8U11-7Ver1 ~ID 788051 Star) MD ~ ~ ~ ~! ~ ft TVD =~ ! ft ', Section ~' Default r Specialised '- N«th i ~' ' East ~- Azmuth I ''- ,r ~, i MD [ft] I Inc (deg] ~ Azi [degJ ~ TVD [ft] ~ N«th [ft] East [ft] DLS ~ Tface I VS [ft] J -_ _ __. - - .. ____...___ _. [degJ100ft1 [de91 1 r. i.l r, k r l~ 177.7 i 1 1 1 1 1 1 11 0.1 K '11 1IP ~l~.il 1? -. Gltl iii'~,3 f-. - {f ~ '_I i,j 1 1'1 I.l 3 .., ., - ~ . @ ~ ~ 1 - - I Y 1 1 1 .. c ~ ~ _. ... .. .... .... . .. .. ... _ _ .. _ _..... i ......... .. .. ....._. ~jl l~$. ~~4~ .111 1 ......_ _.. .:. 1'1 11 ..................... .._... I I 11 .. .. .. .. .. .. ..._. . 5326:65: 6.0001 177 78F 5.1524:89:... _ _...._._._ _._. _ ._._._._._. E 58:96 180.00• .... ..............._.._...................... 1526.[ .............._.....__........... . 7 .. 5626.65 _. 1111 .: _ 5336.45. . ._. _ S 1540 57~ E 59 57 i l 1541.7 8 I .. _.... 7987.20? O.000i 177. 11 S 1540.57; E 59.57 1541.7 tie • _Li_'1 Curvature --- ------- -- - ' a= ~C' Straight C 2DBuild r 2D Drop (~ 3D Arc ' t" t~ lr C"'•r.~?!I !` ~irad '.:Ur.= ,- Co«dinates - - --- r MD - -- - ND -- l' Field f Installation r Slot C: RgDatum I Datum (' Field C Installation T Slot_~, -l' Slot C: RgDatum' --_ __r_ _ ______ __--J ~ Paradigm Geophysical Ltd. 2003 • • ~~'~~ Marathon Oil Company - Well Name: KBU 11-7 Location: Kenai, Alaska. INTEGRATED FLUIDS ENGINEERING PROJECT PLAN IFE Prepared For: MARATHON OIL COMPANY Well KBU 11-7 Prepared by: Tony Tykalsky Reviewed by: Mark Fairbanks Presented to: Will Tank October 25, 2005 ~~ Kenai Peninsula, Alaska • • '~ Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: Enclosed is the recommended drilling fluid program for the KBU 11-7 Well to be drilled this year. The following is a brief synopsis of the program. Overview: KBU 11-7 is a development well targeting the Tyonek formation at the Kenai Gas Field. Flo-Pro fluid will be used for the intermediate and production intervals. After logging the production interval, the well will be completed with a 3-1/2" excape system cemented in place. Surface Interval: The surface interval will be drilled with the standard GeUGelex spud mud. No problems were noted in this interval while drilling KBU 24-6 and KBU 11-8X. Intermediate Interval: This interval will be drilled with aFlo-Pro NT fluid. After drilling out the surface cement, the well will be displaced to a modified Flo-Pro KCl fluid. While the program calls for the standard SafeCarb bridging material. Mix II should be added to the mud system prior to drilling the Sterling A8 s__and (±/- 3970' MDI. This is a highly porous depleted zone that has contributed to losses of whole mud in the past. Production Interval: This interval will be drilled with the same fluid that was used to drill the intermediate interval. The fluid will be pre-treated with Bicarb and/or citric acid prior to drilling out the cement. Any further fluid dilutions will be made in order to keep the mud properties at the recommended specifications. Fluid loss should be maintained @ 7 - 9 cc's API for this interval. Based on offset well history mud weights above 10.0 PPG maybe required. Completion: The cement will be displaced with 6% KCl brine for the completion phase of the program. Conqor 303A and Sodium Meta Bisulfate will be added to the drilling fluid that will be left between the 3-1/2" completion string and the 9-5/8" casing on the final circulation prior to cementing. Tony Tykalsky Project Engineer /M-I SWACO Reference Wells: KBU 43-7X; KBU 11-8Y; KBU 11-8X; KBU 42-6 NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties required. ~~ ~ • ~~'~~ Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. EXECUTIVE SUMMARY Our overall goal is no spills and no incidents while providing fluids and solids ~~~ control services to Marathon Oil Company. Our goal for KBU 11-7 is to remove drill solids from the mud system at a cost of less than $0.24 per pound. This has been the average for the last four years of ~ ~ ~ centrifuge van operations With the revised fluid formulation (utilizing the intermediate interval fluid for the production interval), we expect to drill this well for a product cost of less than $24.34 per foot. We estimate the use of less that 4876 barrels to complete this well, not withstanding any un-anticipated losses to the formation. ~--- '~ Use of the MI-SWACO centrifuge van for the last four years has provided an estimated savings in dilution and disposal costs to Marathon Oil of over $800,000. '~ With continued usage of our equipment, we expect to provide more savings to you during future operations. ~~ • ~ '~ Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervals. Depth Benchmark 1 Benchmark 2 Benchmark 3 Benchmark 4 Interval (ft) Fluid cost per foot Volume Usage Solids Removal 0 -1712' < $3.79 ft < 1683 bbls 1712 - 5627' < $29.22 ft < 2365 bbls 5627 - 7987' < $22.30 ft < 828 bbls Total Avg. Max. Project < $24.34 ft <4876 bbls < $0.24 Ib No Spills from Targets for Centrifuge Van Drilling Operation Interval ~~ • • ~'~ Marathon Oil Company `: Well Name: KBU 11-7 Location. Kenai, Alaska. Project Summary Casing Hole Casing Depth ND Mud Mud Sum Interval Size Size Program System Weight Days Mud Cost (in) (in) (ft) (ft) Solids Control (ppg) 13-3/8" 16" 1712' 1676' GeUGelex Spud Mud 8.6 - 9.4 5 $10,403 t Screens 150/180 mesh Desilter Centrifuge Van 9-5/8" 12-1/4" 5627' 5337' Flo-Pro w/SafeCarb 9.0 - 7 $119,625 Screens 180 - 210 < 9.5 mesh Desilter Centrifuge Van 3-1/2" 8-1/2" 7987' 7697' Flo-Pro w/SafeCarb 9.0 - 5 $61,341 Screens 230 - 210 10.0+ mesh ~ Desilter Centrifuge Van 3 1/2" 8-1/2" Completion 7987' 7697' 6% KCl 8.55 2 $5,600 - Utilize all solids control equipment to minimize the build up of drill solids in the system (if possible, centrifuge the surface mud during trips to reduce drill solids). - Condition the mud prior to running casing for all intervals. - Cost include 2% Lubetex concentration in intermediate and production interval. ~~ • ~ '~ Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. Offset Well Information Well Hole Size Depth PPG PV YP FL Comments KBU 43-7X 16" 1500 9.15 14 30 14 Spud in, drlg to casing point 12.25' 2900 9.2 5 24 16 Drig out, disp to FloPro (no fluid loss) 4225 9.05 9 21 16.4 Drlg ahead, encounter some coal 4810 9.32 9 30 15.6 Short trip - backream -some swelling 5112 9.4 11 30 17.6 Swelling hole -lower FL with Pac 5811 9.5 13 29 8.4 POH - OK 6477 9.6 17 42 6.0 POH -ready to run casing 8.5" 6991 9.2 12 22 4.4 New mud - drlg ahead 7795 9.3 14 26 3.6 Trip OK - drlg ahead 8570 9.85 12 44 4.4 Gas -increase mud weight 8610 10.6 15 28 4.6 Gas -increase mud weight KBU 11-8Y 16" 498 8.65 11 16 17.0 Spud in 1550 9 9 16 8.8 Drlg to casing point, condition mud, short trip OK 1550 9.1 9 19 10.6 Run & cement csg 12.25" 1570 9.1 10 19 6.8 Drlg out, displace to new mud, drlg ahead 3774 9.1 9 17 7.0 Drill ahead 5033 9.3 13 15 7.8 Short trip, Ok drlg ahead 5820 9.45 17 23 5.8 TD Interval, add 3% Lubetex for torque 5820 9.55 19 22 5.8 Log well on wireline 5820 9.7 20 26 5.4 Condition mud, run & cmt csg, lost partial returns 8.5" 5840 9.3 14 18 6.2 Drill out cmt, drlg ahead 7574 9.75 17 27 5.0 Drill ahead, add Lubetex & EMI 920 for torque 8220 10 16 27 5.4 Drlg to TD, inc. PPG to 9.9 for gas 8220 10.5 17 28 5.8 Wireline well, RIH, increase ppg for gas 8220 10.8 17 26 5.2 Run excape assembly & cement same, displace with KCL brine 1~ • • '~ Marathon Oil Company Well Name: KBU 11-7 _ Location: Kenai, Alaska. Offset Well Information KBU 11-8X 16" 720 9 13 32 14 Spud in, drill ahead 1517 9.05 13 12 16 Drlg to casing point, condition mud, POH to run casing 12.25" 2326 9.1 11 13 8.2 Drlg out, disp to FloPro, drlg ahead, keep mud thin for high GPM 3719 9.5 11 16 7.8 Drlg ahead, short trip OK, drlg ahead 4825 9.4 12 19 6.4 Drlg ahead, high torque, add lubetex 5334 9.5 11 22 7.2 Slow ROP, add lubetex for sliding 5611 9.7 13 21 7.5 Drlg to casing point, condition mud, POH to run casing 8.5" 6338 9.4 13 21 6.8 Drlg out, displace to new mud, drlg ahead 7402 9.85 13 21 6 Short trip OK, increase PPG to 9.8 7659 10 8 18 11.2 Drlg to TD, fluid loss increasing to to bacterail contamination, POH for logs 7659 10.2 11 14 9.1 Finish logging, run excape completion. KBU 42-6 16" 139 8.65 14 24 13.6 Spud in 1495 9.55 12 23 7.8 Drill ahead, wiper trip OK, drlg ahead 1525 9.4 12 21 7.2 Drlg to casing point, condition mud, POH to run casing 1525 9.4 12 17 8.8 Cement casing, good cement to surface 12.25" 1525 9.05 12 18 8.8 Drlg out, displace to new mud, LOT = 15.3, ppg drlg ahead 2469 9.2 10 15 8.0 Drill ahead 4414 9.3 10 19 6.6 Drlg ahead, short trip OK, drlg ahead 5543 9.3 13 21 8.2 Drlg to 5417, lost returns pumped 3 LCM pills, stop losses, drlg ahead 6171 9.4 12 14 5.8 Drlg ahead, lost circulation, spot LCM pill 6176 9.1 10 14 7.4 Spot added LCM pills, losses as high as 100 BPH 6176 9 11 15 7.2 Stop losses prior to running 9-5/8" casing 6176 9.2 20 13 7.4 Run & cement csg, no losses until end of cement job (25 bbls) 8.5" 6951 9.2 11 20 5.6 Drlg out, displace to new mud, run FIT, drlg ahead 8602 10.4 21 26 5.0 Drlg ahead, short trip OK, drlg ahead 8624 10.6 20 26 4.8 Drlg to TD, increase ppg to control gas 8624 11.05 21 25 4.4 Poh, run excape completion, cement same. • ~~ • Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. Plans & Procedures ~ COMMUNICATION -The Field Mud Engineer will communicate daily with the In-Town Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole difficulties, possible changes to the mud program, and proposals to use products not included in the mud program. ~ Whole Mud Losses to the Stering A8 and Upper & Middle Beluga Sands - Refer to fluid formulas and the Optibridge charts for maintaining proper bridging material concentration in the mud system while drilling the intermediate and production intervals. ~ FLUID LOSS CONTROL - In the intermediate interval the API fluid loss will be maintained in the 7 - 9 cc's range. In the production interval the API fluid will be maintained between 6 - 8 cc's at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum . ~ MIXING CONDITIONS -Whenever possible all treatments to the mud system should be made as pre-mix additions. Polymers and KCI should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. ~ CORROSION - Congor 404 additions should be made daily when drilling with FloPro fluid in order to maintain a Congor 404 concentration of +/- 2000 PPM. ~ CORRISION - Sodium Meta Bisulfate additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm ~ SOLIDS VAN USAGE -The Solids Van should be used whenever drill solids become un- acceptably high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should not be the determining condition for when to use the Solids Van. ~ WEIGHTING UP -All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. 0 DRILL SOLIDS -MBT -The MBT should be kept at less than 7.5 ppb in the intermediate and production intervals through aggressive use of solids equipment and dilution as needed. ~~ C Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. Interval Summary -16" hole 0 -1712' Drilling Fluid System GeUGelex Spud Mud Key Products MI Gel / Gelex /Soda Ash /Caustic Soda / MI Bar / PolyPac Supreme UL /Sodium Meta Bisulfate Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens -150 -180 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, hole cleaning. nterval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pII Solids (ft) (ppg) (sec./qt) (lb./100ftz) (ml/30mn) (%) 0-1712' 8.6-9.4 60-100 25-35 NC-12 +/-9.5 <7.5% - Treat drill water with Soda Ash to reduce hardness. - Build spud mud with 20 - 25 PPB M-I Gel to +/- 100 seconds/quart funnel viscosity. - Lower funnel viscosity to +/- 75 after gravel zone has been drilled. - Add Gelex as needed to maintain sufficient viscosity for hole cleaning. • - Increase funnel viscosity if fill on connections begins to occur. - Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. - Add Sodium Meta Bisulfate to maintain a DO of < 3 PPM. - Condition mud prior to cementing casing to reduce yield point and gel strengths. - Estimated volume usage for interval - 1683 barrels. - Estimated haul off volume - 3421 barrels. IFE E~.~L ~~ • ~~ Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. Interval Summary -12-1/4" hole 1712 - 5627' Drilling Fluid System Flo-Pro Fluid Key Products Flo-Vis / PolyPac Supreme UL / KCl / SafeCarb 10, 40, 250 / Mix II /MI Bar / Caustic Soda / Conqor 404 /Sodium Meta Bisulfate K1aGard Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended initial shaker screens -180/180/150 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions nterval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill. Interval Weight Viscosity 1 min Fluid Loss MBT Solids (ft) ( ) (c .) (c s) (ml/30min) (%) _ 1712 - 5627' 9.0 - < 9.5 8 - 12 40,000+ 7 - 9 < 7.5 +/- 5% - Use one rig pit to drill out surface casing. In other rig pits, build new Flo-Pro fluid using the enclosed fluid formula. Pre-heat makeup water with steam hoses as much as possible. - After drilling out surface casing, displace hole to Flo-Pro fluid prior to running leak off test - As mud heats up, increase F1oVis concentration to 2 PPB and install 180 mesh shaker screens on end panel. - NOTE: Beware of whole mud losses to the Sterling A8 & _Unper Beluga formations. Ensure adeauate bridging material (30 PPB) SafeCarb + (5 - 10 PPB) Mix II is in the mud while drilling these formations. - If torque or sliding problems occur, add 1 - 3% Lubetex. - NOTE: This fluid will be used in the production interval. It is inherent to maintain prover fluid properties for that purpose. - Estimated volume usage for interval - 2365 barrels. - Estimated haul off volume - 3417 barrels. - Condition mud prior to running 9-5/8" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~~~ • • ~'~ Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. Estimated Product Usage Summary PRODUCT Surface 16 Intermediate „ 12-1/4 Production 8-1/2 Completion „ 3-1/2 Total Usage % of Total Cost M-I Bar 0 473 994 0 1467 6.12 M-I Gel 337 0 0 0 337 1.31 Gelex 21 0 0 0 21 0.11 Soda Ash 8 12 8 0 28 0.23 Caustic Soda 8 24 8 0 40 0.76 Conqor 404 0 5 3 0 8 5.59 Sodium Meta Bisulfate 17 24 8 5 54 1.68 Bicarb 8 12 17 0 40 0.36 Congor 303 0 0 0 5 5 1.10 F1oVis 0 142 66 0 208 22.69 Desco CF 8 0 0 0 8 0.21 Polypac UL 8 95 33 0 136 11.80 KCl 0 993 348 42 1383 9.63 Safecarb 0 709 248 0 957 10.11 Lubetex 0 19 13 0 32 13.00 Mix II 0 95 0 0 95 1.31 EMI 920 0 0 4 0 4 2.03 Citric Acid 0 0 17 0 17 0.93 K1aGard 0 21 4 0 25 9.62 Defoam X 0 13 5 0 18 0.88 Engineer Service 5 7 5 2 19 ~~ • • '~ Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. Fluid Formula -12-1/4" Interval 12-1/4" Interval from 1712 -- 562T Input Descri Lion KBU 11-7 Mud Wei ht 9.0 - 9.5 Preh rated Gel No We' ht Material Code SafeCarb Preh rated Gef Conc. Wei ht Material SG 2.8 KCI Wt% 6 NOTE: Pre-heat m akeup water with steam hoses as much as possible. Out ut -1 bbl Order of Products Concentration Volume Product 'Addition Field, Ib Lab, m Field, bb! Lab, ml Us e 1 Water 298.70 298.70 0.853 298.70 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 1.25 1.25 0.003 0.83 Viscosi 4 Pol ac Su reme UL 2.00 2.00 0.004 1.25 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 H Control 6 Potassium Chloride 19.07 19.07 0.023 7.98 Inhibition 7a SafeCarb 10 4.00 4.00 0.040 1.44 Brid in A ent 7b SafeCarb 40 12.00 12.00 0.012 4.32 Brid in A ent 7c SafeCarb 250 4.00 4.00 0.004 1.44 Brid in A ent 8 KlaGard 4.00 4.00 0.008 2.25 Inhibition Plan on addin 2.5 - 5 PPB Mix II to the muds stem rior to drillin into the Sterlin A8 sand +/- 4880' MD 9 Mix II 5.00 5.00 0.010 3.12 LCM if for ue becomes a roblem, or slidin is difficult add 1 - 3% of the followin 10 Lubetex 14.00 14.00 0.041 14.43 Lubricit If bit ballin becomes a roblem add the followin 11 D-D CWT 1.00 1.00 0.003 1.00 Reduce BHA Ballin Total 399 399 1.000 350 Calculated Mud Wei ht 9.500 Estimated Volume Usa a 2365 Barrels Total Chloride 29600 ~ C I I /~ • ~~ • Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. Interval Summary - 8-1/2" hole 5627 - 7987' Drilling Fluid System Flo-Pro Fluid Key Products Flo-Vis / Polypac Supreme UL / KCl / SafeCarb / MI Bar / Klagard Caustic Soda / Conqor 404 /Sodium Meta Bisulfate /EMI 920 Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 210 - 230 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions nterval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss 1VIBT Solids ft) (c .) (c s) , (mU30min) %) 5627 - 7987' 9.0 -10.0+ 10 - 14 30,000+ 6 - 8 < 7.5 +/- 5% - Pre-treat drilling fluid with Bicarb and/or citric acid prior to drilling cement. Aggressively treat out cement contamination as soon as feasible. Build additional dilution volume to maintain proper specifications. - NOTE: Based on offset well history, mud weights 10.0 PPG or higher may be required for wellbore stabili - NOTE: If metal-to-metal torque is a problem after drilling out_the 9-5/8" casing, then add 0.5 - 1% EMI 920 prior to adding Lubetex. - If running coals become a problem, treat with a 2 PPB addition of Asphasol Supreme. - Estimated additional volume for interval - 828 barrels. - Estimated haul off volume - 2256 barrels. - Condition mud prior to running 3-1/2" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. T-~~ r 1 LJ ~~ • Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. Dilution Formula - 8-1/2" Interval __ 8-/42" Interval from 5627 - 798T Innut Descri tion KBU 11 - Mud Wei ht 9.0 - 0. Preh rated Gel No Wei ht Material Code MI Preh drated Gel Conc. Wei ht Material SG 4.2 KCt Wt% 6 Ou ut -1 bbl Order of Products Concentration Volume Product Addition Field, Ib Lab, m Field, bbl Lab ml Us e 1 Water 325.19 325.19 0.929 325.19 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 FloVis Plus 2.00 2.00 0.005 1.34 Viscosit 4 Pol ac Su reme UL 2.00 2.00 0.004 1.33 Fluid Loss Control 5a SafeCarb 10 15.00 22.50 0.017 5.67 Brid in A ent 5b SafeCarb 40 5.00 7.50 0.006 1.89 Brid in A ent 6 Potassium Chloride 20.76 20.76 0.025 8.68 Inhibition 7 CONQOR 404 2.00 2.00 0.004 1.43 Corrosion Control 8 Caustic Soda 0.50 0.50 0.001 0.23 H Control 9 Sodium Meta Bisulfate 0.50 0.25 0.001 0.25 Ox en Scaven er 10 KlaGard 2.00 2.00 0.004 1.43 Inhibition If hi h for ue in incured while drillin out t he 9-5/8" cas in add 0.5 - 1.0 % EMI 920 11 EMI 920 3.50 3.50 1.500 3.50 Metal to Metal Lub If slidin or hi h for ue becomes a roblem add 1 - 3% of the followin 12 Lubetex 7.00 7.00 0.021 7.00 Lubricit If sloughing coals become a roblem add 2 - 4 b of the followin 13 As hasol Su reme 2.00 2.00 0.004 1.33 Wellbore Stabili Mix fluid in the order listed above. Total 380.1 380.1 Estimated Volume Usa a 828 Barrels Calculated Mud Wei ht 9.050 Total Chloride 29600 ~~ ~~ • ~~ • Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. Interval Summary -Completion Procedures Corrosion Control Additive in Casing x Tubing Annulus Well KBU 11-7 Volumes: Tubing Volume 3-1 /2" Tubing 69.49 barrels Annular Volume Casing x Tubi~ 345.11 barrels 3.50 x 2.992 x 7987 ft Open Hole x T 120.23 barrels Total Annular Volume 465.34 Tubing Volume 69.49 Total Hole Volume 534.83 9.625 x 8.681 @ 5627 ft MD 8.500 x 3.50 @ 7987 ft MD Treatment Procedures. 1. After the 3-1/2" tubing is run and the drilling fluid is circulated and conditioned for the cement job, circulate an additiona1465 barrels of drilling fluid. 2. Add 1 drum of Conqor 303A and 1 sack of Sodium Meta Bisulfate for each 95 barrels of drilling fluid pumped (5 drums 8 5 sacks total) 3. After the 465 barrels of drilling fluid with treatment have been pumped downhole, begin the cement job. This procedure will place corrosion control in the 3-1/2" x 9-5/8" annulus. ~~ C • ~~ HSE Issues Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ~~ • '~ Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. • Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammabilit Reactivit PPE M-I BAR Weighting Agent *1 0 0 E M-I GEL Viscosity control *1 1 0 E GELEX Bentonite Extender 1 1 0 E FLOVIS Viscosifier 1 1 0 E DUAL-FLO Modified Starch 1 1 0 E POLYPAC Fluid Loss Reducer *1 1 0 E HEC Loss Circulation Material 1 1 0 E Safe-Garb F,M,C Bridging and weighting agent *1 0 0 E Nut Plug Loss Circulation Material *1 1 0 E M-I Seal F, M, C Loss circulation Material *1 1 0 E Mix II F,M,C Loss circulation Material *1 1 0 E DESCO CF Dispersant 1 1 0 E SALT (Solar) Densifier 1 0 0 E POTASSIUM CHLORIDE Shale Inhibitor 1 0 0 E CAUSTIC SODA Alkalinity control 3 0 X BORAX Inorganic Borate 1 0 0 E SAPP Sodium Pyrophosphate *1 0 0 E SODA ASH Alkalinity control 1 1 0 E SODIUM BICARBONATE Alkalinity control 1 0 0 E CITRIC ACID pH Adjuster 1 0 _p . ; _:- E BIOBAN BP-PLUS Biocide *2 p .1 GREEN CIDE 25G - Biocide 3 0 .1 DEFOAM X - Defoamer 1 1 J G-SEAL Sized graphite LCM 1 1 E EMI 920 Lubricant 1 1 J LOBE TEX Lubricant 1 1 J D-D CWT Detergent 2 1 .l Concor 404 Corrosion Inhibitor 1 1 J SAFEKLEEN Drilling fluid additive 1 1 J Asphasol Supreme Shale Inhibitor 1 1 J Sodium Meta Bisulfate Oxygen Scavenger 1 1 J ~~ • ~~ • Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 -Severe hazard 3 -Serious hazard 2 -Moderate hazard 1-Slight hazard 0 -Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A -Safety Glasses B -Safety Glasses, Gloves C -Safety Glasses, Gloves, Synthetic Apron D -Face Shield, Gloves, Synthetic Apron E -Safety Glasses, Gloves, Dust Respirator F -Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G -Safety Glasses, Gloves, Vapor Respirator H -Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I -Safety Glasses, Gloves, Dust and Vapor Respirator J -Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K -Air Line Hood or Mask, Gloves, Full Suit, Boots X -Consult your supervisor for special handling directions ~i =. • ~~ Marathon Oil Company Well Name: KBU 11-7 Location: Kenai, Alaska. Contacts Contact Title a-mail Work Cellular Pete Berga Drilling pkberga@marathonoil.com 907 565-3032 907 231-0663 Marathon Superintendent Will Tank Drilling Engineer wjtank@marathonoil.com 713 296-3273 713 203-8398 Marathon Tony Tykalsky Project Engineer ttykalsky@miswaco.com 907 274-5011 907 227-2412 MI SWACO Bob Myles Warehouse Manager rmyles@miswaco.com 907 776-8722 907 252-4218 MI SWACO Michael Barry Senior Field gratefulmen@hotmail.com 907 260-4666 907 590-3636 MI SWACO Engineer (home) Locke Rooney Field Engineer rooneyl@alaska.net 907 235-0598 907 590-3636 MI SWACO (home) Roland Lawson / Drilling Foremen 907 283-1312 Larry Myers /Dave Morris Marathon Responsibilities - MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M-I field engineers. - Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. - Field Engineers will monitor and supervise product inventory to include re-palletizing any products for shipment to other locations at the end of the well. - Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). - Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. ~~ • ~i'000 L L95779~i' x:04 L 203895: O 183484~~' a e • TRANSMITAL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/PARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME ~ /i( ~~ PTD# 2DS _/,~ 5- CHECK WHAT ADD-ONS "CLUE" APPLIES (OPTIONS) it is for a new wellbore segment of Th ~ MULTI e perm ~ LATERAL existing well Permit No, API No. (If API number Production should continue to be reported as last two (2) digits a function of .the original API number stated are between 60-69) above. PILOT HOLE In accordance with 20 AAC 25.005(f), all (per records, data and logs acquired for the pilot i hole must be clearly differentiated in both name (name on permit plus PH) and API number (50 - 70/80) from records, data and logs acquired for well (name on permit). SPACING The permit is approved subject to full EXCEPTION compliance with 20 AAC 25.055. Approval to perforate and produce/infect is contingent upon issuance of a conservation order approving a spacing exception. i (Company Name) assumes the liability of any protest to the spacing I exception that may occur. DRY DITCH All dry ditch sample sets submitted to the SAMPLE Commission must be in no greater than 30' sample intervals from below the permafrost ~ ~ or from where samples are first caught and 10' sample intervals through target zones. Rev: 04/01/05 C\jody\transmittal_checklist WELL PERMIT CHECKLIST Field & Pool KENAI, UPPERTYONEK BELUGA GAS -44857 _Well Name: KBU 11-7 Program DEV Well bore seg ^ PTD#:2051650 Company MARATHON OIL CO Initial ClasslType DEV 11-GAS GeoArea Unit OnlOff Shore On Annular Disposal ^ Administration 1 Permit.feeattached____________________________________ _________Yes_ _-_________ ____________________-___. 2 Lease number appropriate----------------------- - -- - Yes -------------------------------------- 3 Uniquewell_nameandnumbe[_____________________________ _________Yes_ ____-__--__-______-__- 4 Well located in a-definedpool_________-_--_------- ------_-Yes_ --__------.__-----_- ---------------------------------------------------- 5 Well located proper distance from drilling unit_boundary_ _ - - - . _ - . - - -Yes - 6 Welllocat_edpr_operdistancefromotherwells_____________________ ____ ____Yes_ -___ - - - 7 Sufficient acreage available in_dril_ling unit_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ - . _ - _ 8 If deviated, is-wellbore pintincluded - - - Yes - - 9 Operatorgnlyaffectedparty_____________________________ ____--__Yes- ______--. ----------------------------------------------------------------- 10 Ope[atorhas-appropriate_bondinforce___._._...-._________ _________Yes_ .-__-----._---_---_.... --------------------------------------------------- 11 Permit can be issued without conservation order -- - Yes Appr Date 12 Permit_canbeissuedwithoutadministrative_approval________________ _________Yes_ _-__________-___---.__--__-_-_-.-__-----._ RPC 1112!2005 13 Can permit be approved before 15-day wait Yes 14 Well located within area and-strata authorized by-Injection Order # (put_10# in_comments)_(For NA_ ii 15 All wells within 114_mile area of review identified (For service well only) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA. _ _ _ ~I 16 Pre-produced injector; duration.ofpve-production less than 3 months_(Forservice well_only) _ - _N_A_ _ _ _ _ - _ _ - - - - . _ - - - ~ 17 ACMP-Finding of Consistency_has been issued_for_this project- - - - - - - - - - - - - - _ - _ P1A- - - - - _ - . - - . - - - - - _ ------------------------------------------------------ Engineering 18 Conduclorstring_pravided_______------------------- --------- Yes_ _--_-.20"@128'.---_----__--__-______________ -------------------------------- 19 Surface casingprotects aII known USDWs - - - - - - - - - - - - - - - - - - - - - - - - - Yes 20 CMT-vol_adequate-to ci[culate_on conductor_& surf-csg _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Yes _ _ _ _ _ _ Adequate excess. _ _ _ _ _ - _ - _ - - - 21 CMT-vol-adequate_totie-in long string tosurfcsg__-_____ N_o__ _______________________________________-__-_________-_- 22 CMT_willcover_allknown_productiyehorizons--------------------- ---------Yes- ---_-----_----___-__--------____---___- 23 Casing designs adequate for C,T,B&_permafrost------------------ ------ Yes. --.-_---..._-------.-.---_--__--__--__--_--_____-______ 24 Adequatetankage_o_rreseryepit___--_-------------------- ---------Yes_ ___-__GI_acierRig1. __-___-___-.-___ X 25 Ifa_re-dill,has-a-10-403 for abandonment beenapproved__ __________ _________ NA__ ______Newwell.______________-____--- ~ 26 Adequatewellboreseparation-proposed_______________--______ _-_----_Yes_ ____--.______._---._ 27 Ifdiverterrequired,doesitmeetregulations______________________ ____-__ Yes_ ______-___________________._________ _________-_ --_ Appr Date 28 Drilling fluid. program schematic&equiplistadequate________ ______ _______ Yes_ _____.MaxMW-10,0_ppg.____._-_____--_-_-_------__- _______-_-.--_- WGA 11/3/2005 29 _B_OPEs,_da they meet regu_lotion - - - Yes - - - 30 BOPS-press rating appropriate; test to_(put prig in comments)_ - - Yes Test to 3000 psi. _MSP 2832 si.- - - - 31 Choke_manifoldcomplieswlAPI_RP-53(May84)------------------- ---------Yes_ _-__-_____-__--__-__---_._... 32 Work will occur without operation shutdown, - _ _ _ _ . Yes _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ 33 Ispresence_ofH2Sgas-probable ............... ............ ......... No-_ _-__-. 34 Mechanical condition of wells withinAORyerifled(For_servicewellonlya_____ __________N_A__ ________- __-______-_--_--_-____-_-_-._---__-__-__-.--_------_.------_-- Geology X35 Permit_can be issued wlo hydrogen sulfide measures . - - . - - - Yes 36 Data_presented on potential overpressure zones- - - - - - - - - - - - - - - - - - - -- - - - - - - - NA_ _ - _ _ _ - - _ . Appr Date 37 Seismic-analysis ofshallowgas_zones_ ______________________ ___ ___- NA__ _________ - - - - - RPC 11!212005 38 Seabedcgnditionsurvey_(ifoff_-shore)_________________________ __________N_A-_ __-______ 39 Contact namelphoneforweekly progress-reports [exploratory only]- - - - - - - - - - - - - - - - NA- _ - - _ _ - - - _ Geologic Engineering Public Commissioner: Date: Commissioner: Date Co si ner Date C~~OS~ ~~3 ~ /~-3~df~ • Well History File APPENDIX • Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History t71e 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 calegory of information. C D. Eqc I.osa~ A~Ctic~-~- . N'RSa 1 November 10, 2005 ber 28, 2005 ~~~~ ~~ €~ EPOCH • KBU 11-7 SEC 6 T4N R11W SM • November 10, 2005 -November 28, 2005 Craig Silva: Senior Logging Geologist Ralph Winkelman: Senior Logging Geologist Brian O'Fallon: Senior Logging Geologist John Lundy: Logging Geologist s ~~ EPOCH MARATHON OIL COMPANY KBU 11-7 • TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW .....................................................................2 1.1. EQUIPMENT SUMMARY .......................................................................................... ..2 1.2. PERSONNEL ............................................................................................................. .. 2 2. GENERAL WELL DETAILS ............................................................................... .......... 3 2.1. OBJECT/VES ............................................................................................................. .. 3 2.2. WELL RESUME ........................................................................................................ .. 3 2.3. HOLE DATA .............................................................................................................. ..3 3. GEOLOGICAL DATA .......................................................................................... ..........4 3.1. LITHOLOGY REVIEW ............................................................................................... ..4 4. DRILLING DATA ................................................................................................. ........14 4.1. DAILY ACTIVITY SUMMARY ................................................................................... 14 4.2. SURVEY RECORD ................................................................................................... 20 4.3. MUD RECORD .......................................................................................................... 24 4.4. BIT RECORD ............................................................................................................ 26 4.5. DRILLING PROGRESS CHART .............................................................................. 27 DAILY REPORTS APPENDIX I FORMATION LOGS APPENDIX II DRILLING DYNAMICS LOGS APPENDIX III • €~ E~acH 1 MARATHON OIL COMPANY KBU 11-7 • 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY • Parameter Equipment Type And Position TO~I Downtime Comments Ditch Gas Standard Air Drive Trap Mounted In Possum Belly; FID Total Hydrocarbon Analyzer And Chromatograph 0 Rate of Penetration (ROP) Primary Drawworks Shaft Encoder On Drum Shaft 0 Pump stroke counter Externally Mounted Magnetic Proximity Sensor 0 Hookload /Weight on bit (VVOB) Hydraulic Pressure Cell 0 Drill string torque Digital Signal From Top Drive 0 Top drive rotary (RPM) Non-Functional on Glacier #1 0 Standpipe Pressure Hydraulic Pressure Cell 0 Mud flow in /out (MFI / MFO) MFI Derived From SPM / MFO From Flow Paddle 0 Pit volumes Ball Float Pit Sensors In All Pits And Trip Tank 0 Driller's work station Explosion Proof Touch Screen 0 Casing Pressure Hydraulic Pressure Cell 0 Company man's work station HP COMPAQ 0 Toolpusher's work station HP COMPAQ 0 Geologist's work station HP COMPAQ n/a Pit's work station Explosion Proof Touch Screen 0 1.2. PERSONNEL Unit Number. ML006 KBU 11-7 Mudloggers Years Experience Days at well Sample Catchers Days at well Technician Days at well Craig Silva 27 26 Mark Kilian 16 Steve Forrest 2 Brian O'Fallon 15 4 John Sonnenberger 7 Ralph Winkelman 15 12 Lucas Smith 4 John Lundy 14 10 ~~ ET'OCH 2 ~~ MARATHON OIL COMPANY KBU 11-7 2. GENERAL WELL DETAILS 2.1. OBJECT/ VES The objective of KBU 11-7 is to successfully drill and log a Development Gas well in the Kenai Gas Unit (Beluga/Upper Tyonek Pool), with a minimum of hole or other problems, and then follow Marathon production procedures until the tree is in place and tested. An EXCAPE completion will be performed. 2.2. WELL RESUME Operator: MARATHON OIL COMPANY Well Name: KBU 11-7 Field: Kenai Gas Field, Beluga Unit County: Kenai Peninsula Borough State: Alaska Company Representatives: Rowland Lawson Dave Morris John Nicholson Location: 490' FSL 1066' FWL Sec.6 T4N R11W SM X=274988.97 Y=2362537.28 Classification: Development Gas API #: 50 -133 - 20556 - 00 Permit #: 205-165 Activity Code: (WBS #s) DX.05.12830.CAP.DRL, DX.05.12830.CAP.CMP Rig Name /Type: Glacier #1 /Land /Double Elevation: Ground, RKB 66' GL, 87' RKB imary Targets: /Target Depths: Middle Beluga / 5870' Lower Beluga / 6256' econdary Target: /Target Depth: Tyonek / 7582' Spud Date: 11/10/2005 Total Depth 7900' Total Depth Formation: Tyonek Total Depth Date: November 28, 2005 MWD Company: /Tools Run: Baker Hughes Inteq /Directional MWD Directional Drilling: Baker Hughes Inteq Drilling Fluids Company: M-I Drilling Fluids Logging Companies: Precision Wireline Services: Quad-Combo logging suite, MFT pressures r 2.3. HOLE DATA KBU 11-7 Hole Maximum Depth T D Mud Deviation Shoe Depth F.I.T. Section MD SSTVD Formation Weight (Ppg) (°inc} Casing MD SSTVD EMW 16" 1725' 1599.76' Sterling 9.0 23.4 13 3/" 1717' 1592.18' 15.20 12'/4" 5585' 5217.63' Beluga 9.4 2.8 9 %8" 5579' 5211.73' 15.30 8'/z" 7900' 7532.20' Tyonek 10.3 1.4 3 %z" 7869' 7501.77' EXCAPE Completion ~~ EPQCH 3 M MARATHON OIL COMPANY KBU 11-7 • 3. GEOLOGICAL DATA 3.1. LITHOLOGY REVIEW Sand/Sandstone (3000'-3570') =appears fairly homogeneous overall in color and generalized textural appearance; either medium light gray to medium gray with very strong light olive gray to greenish gray secondary hues, or light olive gray to greenish gray with strong gray secondary hues; some minor faint light brownish gray secondary hues and some localized dark yellowish brown to pale yellowish gray secondary hues; greenish gray colors derived from abundant to very abundant greenstone lithic rock fragments that individually range from dark through light green to grayish green to variegated green; also the gray and green colors are contrasted by spotty to common and well distributed orange to reddish orange lithic volcanic rock fragments; when secondary hues are more yellowish, lt usually represents an increased amount of the orange volcanic rock fragments; overall the cuttings have a "dirty" greenish- grayish salt and pepper appearance with orange specks; very fine lower to coarse lower with spotty grains to granule size; moderately to poorly sorted overall; generalized fining upward through massive sections, but locally inconsistent; uppermost zones are usually finer and better sorted but then transition to a fairly even-sized distribution that ranges from very fine lower to medium upper; the largest overall fraction is fine upper to medium lower; note that very fine fraction very dominantly consists of glass shards winnowed from volcanic ash; medium upper to coarse fraction is generally a very diverse composition, with more variance in roundedness and shape, and could appropriately be described as a "micro-micro-conglomeratefl; medium and larger grains, though dominantly angular to subangular, display a wide range of shape and roundedness. Sand/Sandstone (3000'-3570') =very dominant disaggregated; consolidated sandstone is spotty to marginally common, and consistent through column; most sandstone is matrix supported by tuffaceous clay and volcanic ash; only trace amounts of sandstone that is entirely grain supported (and usually calcite cemented); many variations of mixed matrix and grain support, which largely reflect the variations • of co-deposited volcanic ash derived sediment; some of the supporting ash is winnowed out, reducing the matrix volume, increasing the relative percentage of hard grains and leaving behind a tuffaceous sandstone; some matrix volcanic ash is devitrified entirely or in part, replaced secondarily by calcite and/or silica (and sometimes replaced in multiple stages), forcing the matrix volume to shrink, which causes a closer spacing of grains and sometimes even grain to grain contact; some sandstone displays a distinctive non-clayey tuffaceous siltstone supporting matrix and is gradational to a very sandy tuff siltstone; "clean-looking" sandstones, without intergrain tuffaceous sediment, are fairly rare. Sand/Sandstone (3000'-3570') =nearly all sandstone is compositional graywacke (>30% lithics) with thin localized zones of lithic arenite or even subllthic arenite; estimate 30-65% quartz and volcanic glass, trace feldspar, trace-5% various forms of cryptosilica (chert, chalcedony), 30-70% lithic rock fragments and mafic minerals; lithics dominated by grayish green, dark to light green and variegated green low grade metamorphic greenstone rock fragments; note spotty flakes of green (chlorite) mica; slightly less abundant are medium to dark gray medium grade metamorphic phyllite and argillite rock fragments; spotty remaining lithics are from diverse sources; especially distinctive are orange to reddish orange volcanic rock fragments which strongly contrast the green colored lithics; mafic minerals are dominated by black augite and biotite; other distinctive minerals in trace amounts are greenish yellow epidote, red jasper, rose quartz, yellow citrine, pinkish gray quartzite; locally, a significant fraction of the lithics appear to be micro (sand-sized) rip-up clasts of (usually firm} tuff Gaystone and siltstone; note local light or very light gray tuffaceous sandstone that closely grades to very sandy tuffaceous claystone. • ~~ EPOCH 4 MARATHON OIL COMPANY KBU 11-7 • Sand/Sandstone/Conglomeratic Sand (3570'-3770') =note continued same general characteristics as described above at 3000'-3570', but is coarser, better sorted, has increased subrounded to rounded grains, a slightly more diverse composition in the coarse and larger fraction, fewer large cuttings pieces of consolidated sandstone and a decreased "background" of very fine glass fragments; homogeneous medium gray with very strong greenish gray and pale yellowish brown secondary hues; locally also has faint dark yellowish orange secondary hue due to increased abundance of orange volcanic rock fragments; much of the coarse and larger fraction has the general appearance of amicro-conglomerate or a micro-breccia, with many well rounded clasts mixed with very angular clasts; also possibly bimodal, with the slightly larger well rounded grains representing one depositional group, and the more abundant angular grains being a coarser gradational end fraction of the very fine to medium sand; almost entirely disaggregated, after very soluble matrix Gays are disintegrated and dissolved. Tuffaceous Claystone/Tuffaceous Siltstone (3000'-3900') =dominantly medium light gray, but wide range of associated gray and brown colors and secondary hues; also spotty to locally common greenish gray, and trace to spotty light bluish gray; note that the greenish gray claystone is usually less silty and "shandy" than the gray colored Gaystone, and also slightly shaly; all tuffaceous claystone and tuffaceous siltstone are closely gradational to each other and to all other volcanic ash derived sediments; soft to firm or brittle; most is soft to slightly brittle; massive and structureless when firmer; softer claystone is nearly all hydrophilic, with poor to moderate adhesiveness, poor cohesiveness and moderately soluble; Gayey to ashy to silty texture to various soft matte and mixed textures; earthy to dull lustre; locally microsparkly when shard or micromica content is high; non to slightly calcareous; cuttings habit ranges from irregular and lumpy when soft, to subplaty, subblocky and subsplintery when firmer; trace to spotty micro-thin carbonaceous laminations or particles. Sand/Conglomeratic Sand (3840'-3920') =varicolored overall with abundant lithics; dominant grain colors are clear to translucent to light to medium gray with abundant multicolored lithics that are pale rose to dark red to rust-colored, light to medium bluish green, tan, and dark gray to black; fine lower to very • coarse upper with broken pebble fragments, dominantly medium upper to coarse lower; angular to subangular; moderately well sorted in fine to medium, poorly sorted in medium upper to very coarse range; disaggregated with light gray, ashy supporting Gay matrix; slightly to moderately calcareous. Coal (3895'-3990') =black with very dark, dusky brown secondary hues; moderately hard to brittle; blocky to irregular shaped cuttings; planar fracture dominant with scattered to common conchoidal and birdeye fracture; smooth to slightly gritty texture; resinous to earthy lustre; trace amber/ resinite along bedding planes; common to abundant outgassing bubbles present. Tuffaceous claystone (3960' - 4080') =light gray to light brown with light grayish to medium brown secondary hues; very soft; pulverulent; occasionally slightly firm; irregular shaped cuttings; silty to clayey texture; dull to earthy lustre; poor to fair adhesiveness; fair to good cohesiveness; hydrophilic; soluble; moderately expansive; common to abundant light gray to grayish white ashy tuff; trace black to very dark brown microthin carbonaceous laminations and inclusions. Sandstone/Tuffaceous Siltstone (4060'- 4180') =light gray to very light brown to medium brownish gray, with trace multicolored inclusions; very fine lower to upper, commonly grading to coarse siltstone to silty sandstone; angular to subangular; poor to fair sorting; fragile to pulverulent; non calcareous cement; light gray to grayish white ashy/ clayey supporting matrix; common whitish gray ashy tuff. Sand (4150'-4240') =light gray over- all with abundant varicolored liths, dominant grain colors are clear to translucent quartz and volcanic glass, light gray overall with multicolored lithics that are pale rose to dark red to rust orange, light to medium bluish green, tan, and dark gray to black; fine lower to rare very coarse upper and pebble fragments, dominantly fine upper to medium upper; angular to subangular; moderately well sorted; unconsolidated with trace light gray to whitish gray supporting matrix; non calcareous. • ~~ EI'O~H 5 ~ MARATHON OIL COMPANY KBU 11-7 Sand/Conglomeratic Sand {4180'-4320') =varicolored overall with abundant lithics, dominant grain • colors are clear to translucent to light to medium gray with abundant multicolored lithics that are pale rose to dark red to rust orange, light to medium bluish green, tan, and dark gray to black; fine lower to very coarse upper with broken pebble fragments, dominantly medium upper to coarse lower; angular to subangular; moderately well sorted in fine to medium, poorly sorted in medium upper to very coarse range; unconsolidated with light gray, ashy clay supporting matrix. Sand (4250'-4340') =light gray overall with abundant varicolored lithics, dominant grain colors are clear to translucent quartz and clear volcanic glass; medium light gray overall with multicolored lithics that are pale rose to dark red to rust orange, light to medium bluish green, tan, and dark gray to black; fine lower to rare very coarse upper and pebble fragments, dominantly fine upper to medium upper; angular to subangular; moderately well sorted; disaggregated. Sandstone/Tuffaceous siltstone (4300'- 4220') =light gray to very light brown to medium brownish gray, with trace multicolored inclusions; very fine lower to upper, commonly grading to coarse siltstone to silty sandstone; angular to subangular; poor to fair sorting; fragile to pulverulent; non calcareous cement; light gray to grayish white ashy/ clayey supporting matrix; common whitish gray ashy tuff; present in trace amounts in dominantly medium to coarse sand form. Sand/Conglomeratic Sand (4360'-4460') =light gray overall with varicolored liths dominant colors are clear to translucent quartz and volcanic glass, light gray overall with multicolored lithics that are pale rose to dark red to rust orange, light to medium bluish green, tan and dark gray to black; fine lower to very coarse upper and pebble fragments, dominantly medium lower to coarse lower; angular to subangular with scattered rounded liths; poor to moderate sorting; disaggregated; abundant ashy tuff. Sand/Sandstone/Conglomeratic Sand/Conglomerate (4460'-4700') =medium gray with very strong light olive gray to greenish gray secondary hues, or locally greenish gray to light olive gray with very strong medium gray secondary hues; also very faint light brownish gray to yellowish brown secondary hues; very fine lower to granule; moderate to poorly sorted; very fine grains are very dominantly glass shards winnowed from volcanic ash; the most abundant size fraction ranges from medium lower to coarse upper, but the mean size often shifts slightly upward or downward; fining upward is evident in the thicker sections, but becomes less obvious in coarser, more conglomeratic basal zones; dominantly angular to subangular, and discoidal to subdiscoidal; most very coarse, conglomeratic sand is angular, but a minor fraction consists of well rounded clasts and may be a second mode; almost entirely disaggregated; spotty consolidated pieces are matrix supported by (apparently very soluble) tuffaceous clay and volcanic ash; rare calcite-cemented grain supported sandstone; compositional graywacke to lithic arenite; estimate 40-70% quartz and volcanic glass, trace-10% various forms of cryptosilica (chert, chalcedony), trace feldspar, 30-70% lithics and mafic minerals; abundant greenstone rock fragments; common orange-colored volcanic rock fragments. Sand (4710'-4740') =little change from sand described above; medium gray with strong light olive gray secondary hue; very fine upper to medium lower: generally well sorted in the fine range; angular and discoidal; sublithic arenite to lithic arenite; lithics and mafic minerals are 10-ZO%. Tuffaceous Claystone/Tuffaceous Shale (4750'-4800') =light grayish brown to dark gray with strong secondary hues to pale brown; firm to brittle with lesser amounts of soft to mushy texture; irregular planar oriented structure; gradational to and thinly interbedded with tuffaceous siltstone; clayey to dense ashy to silty texture; dull earthy to partial sparkly luster; many pieces have micro thin Garb laminations with a few pieces containing abundant visible shards. • €~ EPOCH 6 MARATHON OIL COMPANY KBU 11-7 Sand (4820'-4900') =light gray to medium gray with varicolored individual grains; angular to subangular; very fine upper to medium course with ; dominantly tuffaceous cementing material white and soft while hydrated; estimated composition is 30% to 40% quartz, 10% feldspar, 40% to 60% lithics and mafic minerals; quartz is pale gray to colorless to diffuse white and dominant translucent; black mafic minerals; very dominant lithics from low grade metamorphics, especially greenstones that are variegated light to dark greenish gray colors; trace medium brownish coarse grained intrusive igneous rocks, trace feldspar with trace amounts of mica. Tuffaceous ClaystonelTuffaceous Siltstone (4900'-4930'] =light gray to grayish brown with light brown secondary hues; very soft to slightly firm with darker gray coloration; platy, clayey, to ashy texture; dull earthy lustre; fair cohesiveness; poor adhesiveness. Sand/Sandstone (4940'-5230') = light to dark gray, dominantly translucent; very fine to lower medium; angular to subangular with trace amounts of subrounded weathering; poor to moderate sphericity; dominantly matrix supported by tuffaceous clay and volcanic ash; abundant lithic fragments are dark to light green to grayish green and are well distributed within clusters of consolidated sandstone; only trace consolidated sandstone in this interval is grain supported; there are many varied lithic and mafic fragments ranging from olive green, brown, orange and gray. Volcanic Ash/Tuffaceous Claystone/Tuffaceous Shale (5035'-5060'} =dark gray with brownish gray hues; soft to slightly firm or slightly brittle; blocky with earthy to gritty texture; dull luster. Sandstone/Conglomeratic Sandstone/ConglomerateITuffaceous Sandstone (5100'di250') =medium light gray to medium dark gray; locally with faint greenish gray to dark greenish gray secondary hues; lighter gray commonly speckled with darker gray clastic components (including common to locally abundant black clastic coal); dark gray commonly speckled with very light gray (quartz) elastics; note very common micro sedimentary "rip-up" clasts of tuffaceous claystone-siltstone are range of light and • dark gray and brownish gray colors; variegated green clasts visible when sandstone is very coarse and larger; very fine lower to granule; common repeat fining upward sandstone sequences; some uppermost zones grading to "coarse" siltstone; basal zones usually consist of coarse upper to very coarse lower angular grains with minor second mode of well rounded very coarse upper to granule clasts; range from moderately well sorted to pooriy sorted; most abundant overall fraction is fine upper to coarse lower; matrix supported and grain supported sandstone are approximately equal in abundance, and both have pervasive intergrain tuffaceous clay; local tuffaceous sandstone grading to very sandy tuffaceous claystone; coarser sandstone commonly has good visible porosity and permeability; clayey lithic arenite to compositional graywacke. Tuffaceous Claystone/Tuffaceous Shale (5260'-5290') =medium gray to medium light gray to brownish gray; soft mushy to slightly firm; smooth to silty text; sub-platy to sub-blocky to amorphous; abundant very light gray, ashy clay, almost completely hydrophilic, soluble poor to moderate adhesiveness, poor cohesiveness and moderately soluble, very soft matte and mixed textures; earthy to dull luster. Tuffaceous SandstoneITuffaceous Siltstone {5330'-5380'} =light gray to dark gray; individual quartz and glass grains are translucent and clear; dominant fine to medium; sub-angular to sub-rounded; poor to moderate sorting with poor to fair sphericity displayed in disaggregated material; dominant argillaceous matrix; trace calcite-rich micro-laminations; consolidated sandstone is moderately indurated with grain and matrix supported; minor carbonaceous lamina in clay-rich tuffaceous siltstone. ~~ EPOCH 7 M MARATHON OIL COMPANY KBU 11-7 Tuffaceous Sandstone (5150'-5550') =light gray to medium gray; also common light brownish gray to • brownish gray variation; light gray occasional has patchy yellowish gray secondary hues ,light brownish gray has faint patchy grayish orange pink secondary hue; very soft to brittle; most is soft to slightly firm or slightly brittle; brittle sandstone usually is calc in part; most is gradational to very sandy tuffaceous claystone; dominant very fine lower to fine upper; constant minor fraction of larger grain sizes; though angular quartz grains are very dominant, there is a consistent mix of angular and rounded grains; note that redeposited glass shards with little reworking are often rounded; nearly 100% of the sandstone is matrix supported by tuffaceous clay and volcanic ash, and the general appearance often assumes claystone textures that inGude ashy to clayey to micro-gritty and mixed ashy-gritty; the "grit" is a mix of micro and macro glass shards and very fine quartz and lithic sand grains; non to slightly calcareous; the composition of non-volcanic-ash-derived sediments is the same as described above after 5100'. Coarse Sandstone/Conglomeratic Sand/Conglomerate (5490' to 5585') =medium gray to dark gray; coarse lower to granule; mostly the same characteristics as described at 5100'-5250'; tuffaceous clay matrix supported, with localized grain to grain contact; compositional graywacke; displays abundant fractions of medium to dark gray phyllite lithics, and sedimentary clay-silt-ash "rip-up" clasts which have been rounded off during transport and redeposition. Tuffaceous claystone (5620= 5790') =dominant dark gray, light gray sec color; soft sticky; earthy to rough texture; dull luster; trace calcareous laminations; trace subround to angular sand grains in soft semi hydrophilic matrix; variations in hardness; soft clays are hydrophilic, soluble with moderate adhesiveness and poor cohesiveness; clayey to soft moderate matte textures; soft dull luster; massive and structureless. Sand/Sandstone (5690'-5760') =very light gray to medium dark gray; very fine upper to medium loose sand grains, and very fine to fine consolidated sandstone (40% consolidated; 60% disaggregated); some discreet sections of finer sandstone is moderately sorted; dominant grain size mode is fine upper; angular to sub-angular; clay matrix supported and/or slightly calcite cemented; loose sand apparently soluble clay matrix supported; very dominant lithic arenite composition dominated by black to dark gray phyllite/argillite rock fragments; note that the interval 5700-5740 has 10-15% clastic carbonaceous material; also note locally associated interbedded carbonaceous shale and black vitreous coal. Tuffaceous Claystone/Tuffaceous Siltstone (5790'-5860') =light gray to dark gray to dark greenish gray; many variations of greenish gray to dark gray hues; soft to firm hardness; blocky to amorphous; very minor calcareous reaction; moderate cohesiveness and moderate adhesiveness abundant claystone with primary colors ranging from light grayish brown to light and dark grays; most clays are soft, moderately hydrophilic and soluble. • ~~ El~OCH $ MARATHON OIL COMPANY KBU 11-7 • Sand/Sandstone (5870'-6200') =medium gray to dark gray; often can range to medium light gray if supporting matrix has abundant volcanic ash; many subtle faint gray and brown secondary hues; locally strong light grayish brown secondary hue; often has a very dirty "pepper and salt appearance; ranges from very fine lower to medium lower; spotty coarser grains; moderately to poorly sorted overall; uppermost zone of thickest sand sections are moderately sorted; angular to sub-angular, discoidal to subdiscoidal; roundness of grains does not improve as grains become larger; abundantly disaggregated; evident soluble tuffaceous clay matrix supported; though minor overall, the consolidated sandstone is locally very dominant, and is present as "cap-rock" or a layer separating more massive sands; the most extensively consolidated sandstone is abundantly calcareous, brittle to marginally hard, and usually has a close association with calcareous tuff; compositional graywacke to lithic arenite; estimate 30-65% quartz and volcanic glass, trace feldspar, trace-10% various forms of cryptosilica (chalcedony, chert}, 30-70% lithics and mafic minerals; 80-90% of the lithics in this interval are variegated gray to dark gray phyllite rock fragments, that have a distinctive "rough-looking" micro schistose texture and are also often partially weathered; 5-15% of the lithics are dark gray to grayish black argillite rock fragments, and the remaining trace-10% are fairly diverse, and include greenstones, igneous intrusives, calcareous tuff fragments, clastic coal and various sedimentary (rip-up) clasts; note that some zones display localized increases in just the sedimentary lithics of up to 30%; sand sections adjacent to carbonaceous/coaly zones will usually have abundant clastic coal, and some of the coarsest sand often will include micro-size silt-clay "rip-up" clasts; 75-85% of quartz is colorless to very pale gray or pale brown and translucent, 15-25% of the quartz and nearly 100% of the volcanic glass grains are colorless and transparent; visible porosity is poor to moderate. Tuffaceous ClaystoneITuffaceous Siltstone (5860'-6300') =dominantly medium light gray, but wide range of associated gray and brown colors and secondary hues; common to abundant light brownish gray; trace to spotty with strong greenish gray and bluish gray secondary hues; light gray claystone is more "shardy" than brown colored claystone, and also slightly shaly; all tuffaceous claystone and tuffaceous siltstone are closely gradational to each other and to all other volcanic ash derived sediments; • soft to firm or brittle; most is soft to slightly brittle; massive and structureless when firmer; softer claystone is nearly all hydrophilic, with poor to moderate adhesiveness, poor cohesiveness and moderately soluble; clayey to ashy to silty texture to various soft matte and mixed textures; earthy to dull luster; locally microsparkly when shard or micromica content is high; non to slightly calcareous; irregular lumpy cuttings habit to subplaty to subblocky to subsplintery; trace to spotty has micro thin Garb laminations or particles. Sand/Sandstone/Tuffaceous Sandstone (6200'-6400') = no general change in characteristics from interval at 5870'-6200', but color is increasingly homogeneous medium gray as sand sections become more massive; overall grain size shows a decrease and sorting is improved; most is very fine upper to medium lower, with the most abundant fraction fn upper and moderately well sorted; disaggregated; evident soluble clay matrix supported; note that uppermost zones of thick sands has increased quartz, and is sublithic arenite; note relative absence of calcite-cemented consolidated pieces; the lithics fraction appears to have decreased phyllite lithics and increased greenstones. Tuffaceous Siltstone/Tuffaceous claystone (6300'-6600') =medium to light gray to medium and light gray brown; common slight bluish to blue green secondary hues; firm to soft; irregular lumpy cuttings; dull earthy to grainy luster; microsparkly in part; slightly to very sandy; trace to common carbonaceous microlaminations and particles; grades to and interbeds with silty-Gayey sandstones; trace thin to moderately thick discontinuous coal interbeds; trace shaly intervals (with poor fissility}; moderately hydrophilic; poor to moderate adhesiveness; moderate cohesiveness; very slightly to non calcareous. • ~~ EPOCH 9 M MARATHON OIL COMPANY KBU 11-7 Sand/Sandstone/Tuffaceous Sandstone (6400'-6600') =medium to light to dark gray to gray brown; • trace to common slight brownish gray secondary hues; moderately hard to hard to firm; some moderately friable; moderately well to well sorted; fine lower to very fine to medium lower grain; trace medium upper; subangular to angular to subrounded; predominantly medium to light gray lithic grains; common clear to milky translucent quartz and clear volcanics; abundant dark mafic minerals and lithic grains; common black carbonaceous elastics; generally matrix supported by medium to light gray ashy clay; trace grain supported hard very dark gray very calcareous medium grain sand stone with fair visible porosity; grading to and interbedded with tuffaceous siltstone and claystone; trace to common coaly interbeds; generally very slightly to slightly calcareous. Tuffaceous siltstone/claystone (6600'-6760') = medium to light gray to medium and light gray brown; common slight bluish secondary hue; firm to soft; irregular lumpy cuttings; dull earthy to grainy luster; clayey to slightly gritty to slightly sandy texture; trace to common carbonaceous microlaminations and inclusions; grading to and interbedded with similar sandstones; trace thin to moderately thick discontinuous coal interbeds; trace poorly fissile shaly intervals; moderately hydrophilic; poor to moderate adhesiveness; moderate cohesiveness; very slightly to non calcareous. Sand/Sandstone/Tuffaceous Sandstone (6600'-6800') =medium to light to dark gray to gray brown; trace to common slight brownish gray secondary hues; moderately hard to hard to firm; some moderately friable; abundant disaggregated/loose sand in porosity zones; moderately friable; moderately well to well sorted; fine upper to medium to fine lower and very fine; common medium upper, trace coarse grains; sub-angular to angular to sub-rounded grains; predominantly medium to light gray lithics; common clear to milky translucent quartz and clear volcanics; abundant dark gray to black mafic mineraU lithic grains; common black carbonaceous elastics; generally matrix supported in medium to light gray clay/ashy clay; trace grain supported hard very dark gray very calcareous medium grain sandstone with fair visible porosity; grading to and interbedded with tuffaceous siltstone and claystone; trace to common coaly interbeds; generally very slightly to slightly calcareous. Coal (6700'-7000') =very dark gray to black; firm to hard; brittle; hackly; splintery irregular fragments; lignite to sub-bituminous; trace poorly developed conchoidal fracture; generally slightly shaly; silty to sandy in part; grading to sandy carbonaceous material and carbonaceous shale; trace to no visible outgassing. Tuffaceous Siltstone/Tuffaceous claystone (6750'-6940') =medium to light gray to medium to light gray brown; trace brown carbonaceous siltstone; firm to soft; irregular lumpy cuttings; dull earthy to grainy luster; clayey to slightly gritty to slightly sandy texture; common to abundant carbonaceous micro- laminations and inclusions; grading to and interbedded with similar sandstones; trace thin coaly interbeds. • €~ EPOC~-I 10 M MARATHON OIL COMPANY KBU 11-7 Sand/Sandstone/Tuffaceous Sandstone (6800'-7200') =note three major groups of sandstone: very dominant (90%) first group is the very fine to medium, nearly all disaggregated, fairly homogeneous, moderate to occasionally moderately well sorted sand that forms the thickest most massive sand sections; there is some fining upward in the thickest sands; and the uppermost zones of a discreet section usually are finer and better sorted, more quartz-rich, slightly less angular and more spherical; when locally consolidated the sandstone is matrix supported by tuffaceous claystone and volcanic ash, with calcite cemented grains secondary; note that characteristics of the combined matrix and grain supported sandstone remain unchanged as the mean grain size changes; most of the very fine sand consists of reworked glass shards that were winnowed from volcanic ash; as size increases from very fine to fine, the percentage of glass grains decreases from near 95-99% to 20-25%; overall 75--80% of the quartz is colorless to very pale gray, pale brown and occasionally other very pale colors and translucent; 20-25% of the quartz and nearly all of the glass is colorless and transparent; dominant compositional graywacke (>30% lithics}, but locally ranges to lithic arenite and even sublithic arenite in the uppermost "cap" zones of massive sections; the second major group is a much less abundant (usually 5-10%, but locally to 20%), generally poorly sorted sandstones ranging from very fine to coarse and locally very coarse with trace well rounded possibly bimodal granules, that when disaggregated is indistinguishable from the first sand group above, but if still consolidated, lacks homogeneity, displays a more even mix of angular and subrounded grains, is more often calcite cemented and grain supported, and have more diverse group of; the third major sandstone group is a minor fraction overall {usually 5- 10%), acompositional graywacke with a much high percentage of lithics (ranging to 70%) that is pervasively dominated by phyllite rock fragments, but locally includes abundant clastic coal fragments and micro sedimentary "rip-up" clasts; note that the 400' interval above has spotty to locally common distinctive loose grains of iron oxide stained quartz and chalcedony. Tuffaceous SiltstonetTuffaceous claystone (7000'-7360') =medium to light gray to medium to light gray brown; trace brown carbonaceous siltstone; fine to soft; irregular lumpy cuttings; dull earthy to grainy luster; clayey to slightly gritty to slightly sandy texture; common to abundant carbonaceous micro- • laminations and inclusions; grading to and interbedded with similar sandstones; trace thin to moderately thick discontinuous coal interbeds; trace poorly fissile shaly intervals; common punky brown lignitic siltstone with abundant black clastic coal inclusions and laminations; moderately hydrophilic; poor to moderately adhesive; moderately cohesive; very slightly to non calcareous; note trace calcareous tuffaceous "floating" or imbedded fragments. Sand/Sandstone (7370'-7420') =medium gray with light brown secondary hues, individual grains are light to medium gray, translucent to clear; very fine lower to rare medium lower, dominantly fine upper to lower; angular to sub-angular; fair sorting; loosely consolidated; minor calcareous; grading to very course siltstone; trace light to medium gray, ashy tuff; common very dark brown to black carbonaceous material. Tuffaceous claystone (7430'-7480') =light to medium gray with light to medium brown secondary hues; very soft to firm; amorphous to globular to massive cuttings; silty to clayey texture; waxy grainy luster; fair to good adhesiveness and cohesiveness; moderately soluble and expansive; common black to dark brown, micro- thin carbonaceous laminations and in inclusions throughout. Tuffaceous siltstone (7490'-7540') = light to medium gray, light to very brown secondary hues overall; trace very light gray sandy tuffaceous siltstone having a light green secondary hue; firm to soft irregularto blocky cuttings; earthy to waxy luster; good adhesiveness and fair cohesiveness; slightly sandy to very sandy in part; grading to silty sandstone and claystone; trace thin laminations generally parallel the bedding; is the patchy intergrain supporting material of some sandstones. Sand (7570'-7580') =frosted white, clear translucent, very light gray to medium gray, with trace amounts of translucent rose to greenish grains; dominantly medium grained (0.25mm} disaggregated sand; trace amounts of course clear angular fragments; minor amounts of carbonaceous material grading from dull blackish shale to vitreous black coal; fair amount of mafic and lithic fragments present. • M MARATHON OIL COMPANY KBU 11-7 Sandstone/Tuffaceous Siltstone {7580'-7635') =light gray to medium gray; moderately firm dull earthy • luster; very fine to upper fine in consolidated material; disaggregated; ranging from fine to medium. Note significant lithology change (at 7635: formation is becoming "ashler" and finer grained and overall color is lighter, trending to light gray and occasionally is very light gray; individual grains are strongly dominated by clear to translucent quartz and clear volcanic glass; the uppermost zones of sand sections are very fine to fine, and lowermost (basal) zones are fine to medium with scattered coarse and very coarse grains; moderately well to moderately sorted overall; subangular to subrounded; mostly grain supported by volcanic ash or tuffaceous clay with minor calcite cementation providing additional support; 70% to 80% quartz and volcanic glass, trace feldspar, trace to 10% various forms of cryptosilica (chert and chalcedony) and 20% to 30% lithics and mafic minerals; lithics dominated by grayish black to dark gray to medium gray argillite and phyllite rock fragments with a prominent minor fraction of greenstones; mafic minerals dominated by augite and biotite; very distinctive colored grains contrast against the bulk sand color, and include traces of red to reddish orange low-grade jasper, brown cryptosilica, dark green chloritic grains, greenish yellow epidote, yellow citrine, rose quartz, very pale grayish yellow quartzite and other rare colored grains derived from various silicate rocks, igneous intrusives, meta-volcanics, and meta-sedimentary rocks. Tuffaceous Siltstone (7700'-7760') =light gray to medium gray to light brown moderately soft, moderately hydrophilic, poor solubility; slightly silty to very silty; mostly non calcareous; trace organic material with occasional Garb flakes and partings; smooth to gritty texture; abundant adjacent coal: black with dusky brown secondary hues, brittle to moderately hard, platy to blocky, fragile to crunchy, dominant planar separation. Coal (7700'-7900'} =black to very dark gray; hard to very firm; brittle; splintery irregular fragments; hackly in part; common poorly developed conchoidal fracture; com cleats; silty to shaly in part; trace carbonaceous shale interbeds; trace white surface mineralization; no visible outgassing. Tuffaceous Sandstone (7630'-7900'} =light gray to medium gray to light brownish gray; occasional patchy yellowish gray secondary hues; very soft to moderately brittle; calcareous in part; very fine lower to fine upper; angular quartz and glass grains and rounded microshards; matrix supported by volcanic ash and tuffaceous claystone; clayey to gritty in part. • €~ EPOCH 12 MARATHON OIL COMPANY KBU 11-7 SAMPLING PROGRAM AND DISTRIBUTION KBU 11-7 Set Type and Purpose Interval Frequency Distribution BJ Services Carp. Tech Center 11211 FM 2920 A Washed and Dried 3000' - 7900' Intervals Tomball, TX 77375 Attn: Marshall Ault AOGCC Alaska Oil and Gas Conservation n/a Commission th n/a n/a n/a Ave., Suite 100 333 W. 7 Anchorage, AK 99501 Attn: Howard Oakland UNOCAL Alaska 909 West 9th Avenue n/a Na n/a n/a Anchorage AK 99501 Attn: Debra Oudean (907} 276-7600 SEQUENTIAL BOX INTERVALS : 3000'-3920', 3920'-4920', 4920'-5700', 5700'-6400', 6400'-7100', 7100'-7900' TD • ~~ EPQCH 13 MARATHON OIL COMPANY KBU 11-7 • 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 11/02/2005: Continue move of Glacier No.1 rig and camp trailers off of 41-7 pad and onto Kenai Gas Field 14-6 pad. Continue rig up of all rig modules, trailers and accessory units for well KBU 11-7. 11/03/2005: Continue rig up of Glacier No.1 rig and camp for well KBU 11-7. 11/04/2005: Wait on permit and peform various major rig service and maintenance on Glacier No.1. 11/05/2005: Wait on permit and pertorm various major rig service and maintenance on Glacier No.1. 11/06/2005: Wait on permit and perform various major rig service and maintenance on Glacier No.1. 11/07/2005: Wait on permit and perform various major rig service and maintenance on Glacier No.1. 11J08/2005: Wait on permit and peform various major rig service and maintenance on Glacier No.1. 11/09/2005: Finalize rig up operations. Nipple up diverter stack. Install knife valve. Bolt up diverter line. Finish up berm construction. Start filling pits with water. Set M-I centrifuge van. Set tanks. Construct berm around centrifuge van. Rig up Topdrive strong-back and rail. Pick up Topdrive and make up function lines. Test run Topdrive. Fix leak observed behind control panel. Change gear box oil. Work on Topdrive hydraulics. Brian O'Fallon arrives on location in afternoon and begins rig up of Unit #6 and rig monitors and network. Craig Silva arrives on location in evening and continues rig up. 11/10/2005: Nipple up pitcher nipple, flowline, trip tank fill line, fill line valve and kill line. Heat trace and insulate suction line for mud pump #3. Finish building spud mud. Install bails and elevator on Topdrive. Inspect pins and keepers. Function test Topdrive. Route hoses to Topdrive. Hang tongs. Rig up and load up rig floor. Hook up kelly hose. Hang spinners. Install mousehole. Hold weekly safety meeting and review for all hands. Test Topdrive and do fine adjust of Topdrive controls. Test gas alarms. Pertormance test Hydril and knife valve. Check flow sensor and PVT indicators. Pick up and make short bottom hole assembly (with old rerun bit) for drilling out conductor. Tag top of conductor fill at 44'. Spud well and drill out conductor from 44' to 138'. Drill new hole outside of conductor from 138' to 186'. Circulate bottoms up. Circulate and condition spud mud. Craig Silva and Brian O'Fallon finish rig up of Unit #~ and communication to camp. Steve Forrest arrives on location and rigs up satellite dish. 11/11/2005: Pull out of hole (from 186'). Pick up and make up directional bottom hole assembly. Scribe, orient, run in hole and test mudmotor and MWD tools. Run in and tag bottom at 186'. Drill (rotating) from 186' to 215'. Troubleshoot minor Topdrive hydraulic problem. Drill (rotating and sliding) from 215' to 1553'. 11/12/2005: Drill (rotating and sliding) from 1553' to 1725'. Circulate bottoms up. Circulate and condition mud. Check for flow. Pump dry job. Pull out of hole(SLM) to 70' on wiper trip. Lubricate rig. Run in hole to 1725'. Circulate bottoms up. Record 16 units of wiper gas. Pump around Hi-mss sweep. Observe 50% increase in cuttings volume with sweep. Circulate and condition hole. Check for flow. Pump dry job. Blow down Topdrive. Pull out of hole. Handle and stand back bottom hole assembly. Lay down stabilizer and break bit. Rig up Weathertord casing running tools. Hold pre job meeting on casing running procedures. Run 13 3/8" casing to 1717' and hang off in elevators. Circulate hole Gean. Clean • rig floor. Make up false rotary. Change bails and elevators. Rig up rig tongs. Lay down and load off casing running tools. Rig up false rotary. Make up stab-in sub and centralizer on 5" drill pipe. Run 15 stands of drill pipe inner string in hole. ~~ EPOC~I 14 ~ MARATHON OIL COMPANY KBU 11-7 11/13/2005: Strap, drift, pick up, make up and run in hole 22 joints of 5" drill pipe inner string. Tag sting- in collar and space out drill pipe. Sting into, and latch onto, stab-in float collar. Circulate and condition mud. (Record 3 units of trip gas}. Pump 40 bbl spacer. Test cementing lines to 2500psi. Mix and pump 243 bbls of 12.Oppg Type 1 cement slurry. Load plug. Pump 28 bbls of mud and displace cement. No losses during cementing, and estimated 5 bbls of cement reached the surface after displacing. Cement in place. Unsting and pull up hole to 1572'. Shear out drill pipe wiper plug and circulate hole clean. Treated 50 bbls in active mud system with sodium bicarbonate to neutralize any cement contamination. Pull inner string out of hole to 1190'. Flush stack and mud line with lignosulfanate cement retarder. Blow down all lines. Pull out of hole with stab-in assembly. Rig down cementing equipment. Clear and clean rig floor. Wait on cement. Begin emptying pits, hauling off mud, and then cleaning all pits and lines. Nipple down, clean and load off diverter line. and knife valve. Rough cut and pull 13 3/8" casing (27.17' total). Nipple down flow line, kill line, fill-up line, trip tank lines and pitcher nipple. Remove starting head. Make final cut on 13 3/8" casing and bevel. Install 13 3/8" slip-lock connection by 13 5/8" 5M flanged multibowl wellhead and pressure test (to 1950psi for 10 minutes). Fill pits with water and begin to build new Flo-Pro mud system. Nipple up 13 5/8" 5M BOPs. 11/14/2005: Continue building Flo-Pra mud system. Nipple up BOP stack, flowline, kill line, choke, pitcher nipple, accumulator lines and trip tank line. Pull wear ring. Set test plug. Rig to test BOPS. Test all ROPE (hydril, dart, upper and lower kelly, check valve, inside and outside kill, floor valve,. choke manifold valves 1-12, blind rams) to 250psi Low/3000psi High for 10 minutes. Run performance test on accumulator. Rig down testing equipment. Pull test plug. Set wear ring. Test 13 3/8" casing to 1000psi for 30 minutes. Blow down surface equipment. Handle and remake directional bottom hole assembly. (Change out UBHS sleeve, make up bit, change AKO from 1.5 to 1.3 and make up string stabilizer). Orient MWD tools. Run in flex collar crossover and function test MWD. Make up lower assembly to HWDP and run in hole. Rack, strap, drift, pick up, make up, run in hole and pull out standing back 108 joints/54stands of new 5" drill pipe (to have 78 total stands of 5" drill pipe). • 11/15!2005: Continue to drift, strap, pick up, make up, run in hole and pull out standing back 5" drill pipe. Run in hole to 1526'. Break circulation. Run in hole and tag cement at 1631'. Drill out cement and shoe track from 1631' to 1725'. Drill 21' of new hole from 1725' to 1746'. Circulate bottoms up. Build 40 bbl Hi-Vis spacer. Pump spacer and then displace mud in hole with new 6°lo KCL Flo-Pro mud. Perform Formation Integrity Test (to 15.Zppg EMW). Blow down choke, choke manifold and kill line. Drill from 1746' to 3072'. 11/16/2005: Drill from 3072' to 4460'. Circulate bottoms up two times. Monitor well. Pump dry job. Pull out of hole from 4460' to 1684' on wiper trip. Service rig. 11/17/2005: Service and lubricate rig. Troubleshoot link tilt switch on Topdrive. Slip and cut 34' of drilling line. Run in hole from 1684' to to 4331'. Break circulation. Wash and ream from 4331' to 4460'. Record 94 units of wiper trip gas. Drill from 4460' to 5030'. Circulate bottoms up (to inspect samples for determining core point). Drill from 5030' to 5080'. Circulate bottoms up. Circulate and condition. Pull out of hole to 4080' on wiper trip. Run in hole to 5080'. Circulate bottoms up. Record 75 units of wiper trip gas. Circulate and condition. Begin pulling (first stand) out of hole. 11/18/2005: Pull out of hole (SLM}. Handle and stand back drilling bottom hole assembly. Rig up for handling coring assembly. Pick up core barrels and core bit and make up coring assembly. Run in hole to 5056' and tag fill (excess SafeCarb LCM). Break circulation. Wash and ream from 5056' to 5080'. Drop ball and pump down to seat. Core from 5080' to 5160'. Circulate bottoms up. Monitor well. Pump dry job. Pull out of hole with coring assembly. ~~ EPOCI~ 15 MARATHON OIL COMPANY KBU 11-7 . 11/19/2005: Continue pulling out of hole with coring assembly for Core Run #1. Handle and lay down core barrels. Run Gamma tool while pulling core barrels. (Core #1, Cut 80', Recovered 82.5'). Inspect core bit. Make up a new coring assembly for Core Run #2. Run in hole with coring assembly to 5056'. Break circulation and wash from 5056' to 5160'. Circulate bottoms up. Space out. Drop ball and pump down to seat. Core from 5160' to 5249'. Circulate bottoms up. Monitor well. Pump dry job. Pull out of hole with coring assembly. 11/20/2005: Continue pulling out of hole with coring assembly for Core Run #2. Handle and lay down core barrels. Run Gamma tool while pulling core barrels. (Core #2, Cut 89', Recovered 90~. Inspect core bit. Repair a connection of one of the drawworks hydraulic lines. Lubricate rig. Rig down, lay down and load off all coring equipment. Make up directional drilling assembly. Run in hole to 5080'. Ream from 5080' to 5249', opening up the cored interval from 8 1/2" to 12 1/4". Drill (rotating and sliding) from 5249' to 5521'. 11/21/2005: Drill from 5521' to 5585'. Circulate bottoms up. Circulate hole clean. Pull out of hole to 4500' on wiper trip. (Pulled tight at 5424' to 5411', and at 5374' to 5225'}. Run in hole to tight zone at 5185'. Wash and ream from 5185' to 5230'. Run in hole to 5585'. Circulate bottoms up. Circulate hole clean. Check for flow. Pump dry job. Pull out of hole (SLM). Lay down lower bottom hole assembly (CSDPs, crossovers, stabilizer, MWD, mudmotor, bit). Hold meeting on wirelining procedures. Rig up Precision Wireline surface equipment. Make up, pick up and run in Quad-Combo open hole logging assembly. Load sources into density tools on way in. Run in hole to 5585' and log up to 1670'. Pull out of hole. Remove sources. Lay down Quad-Combo logging assembly. Make up MFT logging assembly for pressure sampling. Run in hole to shoe. Wait on selection of pressure points. 11/22/2005: Receive pressure point selection from geologist. Run in hole to 5535' with MFT tool. Attempt 5 pressure points, but all failed to seat and test. Pull out of hole with MFT assembly and lay down MFT tool on catwalk to inspect. MFT tool had broken apart, leaving several arm and pad pieces (of non-magnetic stainless steel and alloy metal} in the hole. Review and discuss options and procedures for upcoming operations with Marathon office. Decide first action will be a trip and wash down run, in order to push all loose parts down to bottom of the hole for a later fishing trip. Rig down Precision Wireline Service. Change out malfunctioning extend arm ram on Topdrive. Make up 12 1/4" bit and crossover to HWDP. Run in hole to 1739' (below shoe). Break circulation. Blow down. Run in hole from 1739' to 5525'. Wash and ream from 5525' to 5585'. Circulate bottoms up. Record 52 units of trip gas. Circulate and condition. Check for flow. Pump dry job. Pull out of hole. Lay down jars, cross-over, bit sub and bit. Stand back drill collars. Pick up and make up fishing bottom hole assembly with a reverse circulating sub and basket, and two boot baskets for junk recovery. Run in hole to 5569'. Circulate bottoms up. Wash to bottom at 5585'. Circulate bottoms up. Slowly set down and weight up on RB head while circulating to seal off fish and loose material and force into catcher fingers. 11/23/2005: Set RB mill down over junk. Drop ball to reverse circulation. Mill over junk with reverse basket at 5585'. Pull out of hole to surtace with retrieved junk. Clean reverse basket and boot baskets. Recovered most of original fish, but some pieces remain downhole. Make up fishing assembly with reverse circulating basket for 2nd run. Run in hole to 5525' and break circulation. Wash to bottom at 5525'. Work RB head over fish, pick up and reciprocate several times, mill over and set down with reverse circulating basket. Drop ball to reverse circulation through basket. Pump dry job. Pull out of hole to surtace. Clean out baskets. Retrieve only a few small pieces of junk. Lay down boot baskets, RB basket, top sub, bit sub, cross-overs and jars. Clear and clean rig floor. Hold safety meeting on Wireline procedures with Precision Wireline Services. Rig up PWS. Make up and pick up MFT logging assembly. Run MFT tool in hole to 5457'. Log up taking pressures points from 5457' to 4554'. • ~~ EPOCH-I 16 M MARATHON OIL COMPANY KBU 11-7 11/24/2005: Log up with Precision's MFT tool, taking pressures from 4454' to 3766'. Finish logging, pull MFT tool out of hole and lay down logging assembly. Rig down Precision Wireline Services' surface equipment. Pick up and make up a clean out run assembly with magnet and two boot baskets. Run in hole to 5585'. Circulate bottoms up. (Record 4 units of trip gas). Circulate and condition and reciprocate magnet and boot baskets. Pull out of the hole. Break and clean off magnet. Break and clean out boot baskets. Lay down baskets, bit sub, jars and magnet. Pull wear bushing. Test run landing joint and hanger. Change pipe rams and test to 250psi Low/3000psi High for 5 minutes. Adjust torque tube. Change bails and elevators. Make up Lafleur fill-up tool. Rig up Weatherford casing running equipment. Hold pre-job safety meeting for rigging up and running casing. Make up low torque valve on 9 518" butt swedge. Function valve, leave in open position and set on rig floor. Pick up 9 5/8" shoe joint and run in hole. Pick up, make up, Bakeriok and run in hole next 2 joints of shoe tract. Use fill-up tool and circulate through shoe tract. Continue running 9 5/8" as per program. (Run dog collar as weight requires, and slow running speed if fluid losses are apparent). 11/25/2005: Continue running in 9 518" casing. Pick up and make up pup joint. Pick up and make up hanger and landing joint assembly. Land out 9 5/8" casing in wellhead with shoe at 5579'. Rig up BJ cementing head. Circulate casing (13900 strokes total at 130spm, 400psi) and condition mud for cementing. Install top and bottom plugs. Switch to BJ cementing line. Pump 5 bbls water and test lines to 3000psi. Drop bottom plug. Pump 30 bbls of 10.Oppg MCS4D sweep, followed by 128 bbls of 12.5ppg lead slurry (298 sacks Class G cement to 84.7 bbls water plus accelerator chemicals) and then 105 bbls of 13.5ppg tail slurry (248 sacks Class G cement to 56.4 bbls and accelerator chemicals). Drop top plug and pump out with 5 bbls of water. Switch back to rig pumps. Displace cement with 411.5 bbls of mud. (Total displacement is 415.5 bbls). Bump plug with 1000psi over displacement (1600psi total). Hold for 5 minutes. Bleed off and check floats. Cement in place. Wait on cement. Rig down and blow down circulating lines. Rig down cementing head. Lay down landing joint. Install pack-off and test to 5000psi. Rig up rig tongs. Change out bails and elevators. Adjust torque tube. Rig down stabbing board. Change pipe rams. Pull wear bushing. Pick up and install test joint. Rig up test equipment. Test all BOPE (annular, pipe and blind rams, HCR, floor and dart valves, check valves, inside and outside kill • valves, manual choke, upper and lower kelly cock, CMVs 1-12) to 250psi Low/3000psi High for 10 minutes. Calibrate all gas alarms. Do accumulator performance test. Pull test joint, rig down test equipment and install wear bushing. Test casing to 3000psi for 30 minutes. Blow down mudlines and choke. Lay down drill collars and lift subs. Pickup and make up lower directional bottom hole assembly (bit, mudmotor, stabilizer, NMDC, MWD collar, NM cross-over, NMCSDP, cross-over). Orient MWD tools. Run in hole to last cross-over. Make up to upper bottom hole assembly (HWDP and jars} and run in hole. Rig up to pick up racked drill pipe. 11/26/2005: Blow down mud lines, Pick up, drift, make up and run in hole 80 joints of 5" drill pipe {to 3281'). Hold pre job safety meeting on cut and slip procedure. Slip 127' and cut 160' of drill line. Check crown-o-matic. Service blocks, Topdrive and carrier. Run in hole drom 3281' to 5428'. Wash and ream from 5428' to top of float collar at 5494'. Drill out float collar and shoe tract from 5494' to 5579'. Wash and ream from 5579' to 5585'. Drill 20' of new hole from 5585' to 5605'. Circulate bottoms up. Perform leak Off Test (to 15.30ppg EMW). Drill from 5605' to 5679'. Pull out of hole to 5429' on short 4 stand wiper trip. Run in hole to 5679'. Break circulation. (Record 52 units of wiper gas). Drill (rotating and sliding) from 5679' to 5869'. Circulate bottoms up. Circulate hole clean. Check for flow. Pull out of hole to 5554' (inside shoe). (Pulled tight at 5665' and 5622'). Pump dry job. Blow down Topdrive and mud lines. Pull out of hole. Break and lay down mill tooth steel bit. Service rig. Make up new PDC bit. Run in hole (to 1392'). 11/27/2005: Run in hole with new PDC bit to 5806'. (Stop and fill pipe at 1900' and 5579'). Wash and ream from 5806' to 5869'. Drill from 5869' to 6940'. Circulate bottoms up. Circulate and continue to build mud weight up to 9.9ppg. Check for flow. Pump dry job. Pull out of hole to 5554' (inside shoe) on wiper trip. Back-ream from 6756' to 5741'. (Hole tight at 6756', 6466', 6420', 6414', 6305', 6224', 6183', 6090', 6060', 5950', 5946', 5870', 5741'). Service Topdrive and rig. Grease crown. Replace relay in Topdrive panel and repair broken wire. Blow down Topdrive and mud lines. Run back in hole (to 6124. €~ EPOCEI 17 MARATHON OIL COMPANY KBU 11-7 • 11/28/2005: Run back in hole on wiper trip (from 6124 to 6879'. Wash and ream from 6879' to bottom at 6940'. Circulate bottoms up. Record 43 units of Wiper Gas. Pump Hi-Vis sweep around to clean hole. Drill from 6940' to 7129'. (Note progressive connection gas increase). Repair hydraulic leaks in carrier lines. Drill from 7129'to 7900'. (Received 425 units of connection gas at 7192', begin raising mud weight from 9.9ppg to 10.3ppg, pump Hi-Vis sweep around at 7550. Circulate bottoms up. Continue circulating while waiting on confirmation of TD by geologist. Pump Hi-Vis sweep around. Total Depth at 7900' confirmed by geologist. Pull out of hole to 7200'. (Hole tight at 7613', 7396', 7320. Wash, ream and backream from 7385' to 7281'. 11/29/2005: Continue pulling out of hole from 7200'. Wash and ream and backream from 7240'to 7223', 7024' to 6980', 6850' to 6845', 6840' to 6780', 6770' to 6740'. Pump Hi-Vis sweep at 6740' and circulate around. Continue pulling out of hole from 6740'. Wash and ream and backream from 6700'to 6650, 6580' to 6525', 6485' to 6469'. Pulled out slick from 6469' to shoe at 5579'. Service rig and clean floor. Run back in hole to bottom with no problems. Circulate bottoms up. Record 652 units of wiper gas. Pump around weighted Hi-Vis sweep and circulate hole clean. Check for flow. Pump dry job. Pull out of hole (SLM) to bottom hole assembly. Lay down HWDP, cross-overs, CSDP, MWD NMDC, stabilizer, mudmotor and bit. Clean rig floor. Hold pre job meeting on wireline rig up procedures. Rig up Precision Wireline Service. Make up Quad-Combo logging assembly. Install source. Run in hole with logging assembly. Log up from 7900' to 5579'. Pull out of hole with logging assembly. Lay down logging tools. Rig down PWS. Change out saver sub. Run in hole with open-ended 5" drill pipe. 11/30/2005: Run in hole with open-ended 5" drill pipe to 7440'. Pickup, drift, make up and run in hole 15 joints of 5" drill pipe to 7900'. Circulate and condition mud. Check for flow. Pull out of hole to 7060'. Blow down mud lines. Change bails and rig up Precision Wireline Service. Hold pre job meeting on wireline rig-up and logging procedures. Pickup and make up wireline logging assembly with MFT tools. Run in hole to shoe. Move drill pipe. Run in hole with MFT tool to 7773'. Log up from 7773' to 7117' taking pressure points. Pull out of hole with logging assembly and lay down tools. Pull out of hole with • drill pipe from 7060' to 6243'. Hold pre job safety meeting on wirelining procedures with second crew. Rig down wireline guide and change bails. Install pack off. Rig up wireline guide. Pick up MFT logging assembly and run in hole to 7035'. Log up from 7035' to 6327' taking pressure points. Pull out of hole with MFT assembly and lay down at the surface. Pull out of hole with 5"drill pipe to 5548'. Pick up MFT assembly and run in hole to 6262'. Log up from 6262' to 5656' taking pressure points. Pull out of hole with MFT assembly and break and lay down at the surface. Rig down and load off Precision WLS equipment. Check for flow. Pump dry jab. Blow down Topdrive and mud line. Pull out of hole with open- ended 5" drill pipe. 12/01/2005: Continue to pull out of hole with open-ended 5" drill pipe. Service rig. Adjust brakes. Pick up and make up short bottom hole assembly (with rerun bit #5) for clean out run. Run in hole with clean out assembly. Fill pipe at 1400'. Blow down. Change out cotta-box shifter. Continue running in hole with 5" drill pipe to 5579' (near shoe). Fill pipe. Blow down. Continue running in hole from 5579' to 7543'. Wash and ream from 7843' to 7900'. Circulate bottoms up. Record 110 units of trip gas. Pump around 50 bbl weighted Hi-Vis sweep. Circulate hole clean. Hold weekly safety meeting. Mix and pump around Hi-Vis sweep. Circulate hole clean. Check forflow. Pump dry job. Pull out of hole and laying down 5" drill pipe. (Cull out bad hard-bands). Lay down 5" drill pipe out of derrick. Fill trip tank. Blow down. Pull out of hole laying down 5" drill pipe. • ~~ EPO~I-~ 1$ M MARATHON OIL COMPANY KBU 11-7 • 12/02/2005: Pull out of hole laying down 5" drill pipe, HWDP, jars, bit and bit sub. Pull wear bushing. Rig down rig tongs and spinners. Lay down and load off subs and handling tools. Clear and clean floor. Change bails and elevators. Rig up circulating line. Function safety valve and set in open position. Rig up Expro control lines and sheaves. Hang sleeve with control lines. Rig up Weatherford casing running equipment. Rig up fill-up lines and Pollard banding equipment. Stage modules on pipe rack. Hold pre- job meeting on procedures and safety for running completion string. Pick up and make up shoe tract. Function check float equipment. Pick up, make up and run in hole 31/2" production string with 18 EXCAPE completion modules as per program to 1876'. Rig up circulating line and head. Circulate through modules. Rig down circulating head. Blow down line. Continue running in hole with 3 1/2" EXCAPE completion string as per program to 5572' (shoe). Rig up circulating line and head. Circulate (at 90spm, 177gpm, 570psi). Rig down circulating head. Blow down line. Continue running in hole with 3 1/2" EXCAPE completion string from 5572' to 6552'. 12/03/2005: Continue running 3.5" EXCAPE completion string as per program to 7865'. Rig up circulating line and head. Circulate (at 150spm, 1550psi). Circulate bottoms up. Record 43 units of trip gas. Circulate and condition mud. Hold pre-job meeting with Expro Wireline. Stop pumping. Rig up Expro equipment. Run in hole with gamma correlation log to determine positioning of EXCAPE modules. Log up and pull out of hole with Wireline gamma tool assembly. Rig down Expro WLS. Completion string to be set at 7869'. Rig up cementing head and circulating lines. Head will have plug installed and a wash-up tee. Circulate (at 150spm, 1550psi). Hold pre job safety meeting on cementing procedures. Continue circulating and pump 464 bbls (10175 strokes) of mud treated with corrosion inhibitor down casing. Line up BJ cementers. Pump 5 bbls of water to fill lines. Test cementing lines to 3000psi. Mix and pump 50 bbls of 10.5ppg MCS-4 spacer. Mix and pump 220.4 bbls of 15.8ppg cement slurry (1067 sacks Class G cement plus water and chemical accelerators). Wash lines. Drop plug and pump out with 5 bbls water. Displace cement with 63.4 bbls of 6% KCI brine. (Total displacement is 68.4 bbls, shoe joint is .348 bbls). Bump plug with 500psi over displacement. Bleed off. Check floats. Cement in place. Wait on cement. Blow down and rig down cementing lines. Flush and blow down all pump lines. Flush and blow down mud and choke lines. Rig down flow nipple, riser, drip pan, choke line, kill line, fill-up line and turnbuckles. Lay down mousehole. Rig down accumulator lines and panic line. Clean out trip tank. Begin cleaning pits. Rig up bridge cranes to BOP stack. Craig Silva and John Lundy start rig down of all rig, camp and Epoch Unit #6 instrumentation, monitors and equipment. Craig Silva and John Lundy shut down and rig down the Rigwatch system, the network to camp and the DirectWay Satellite system. 12/04/2005: Rig down standpipe manifold. Rig down #3 mud pump. Pick up BOP stack. Run control and electric lines out tubing head outlet. Set 95K on slips. Rough cut 3 1/2° casing above slips and lay down landing joints. Set stack on rack. Nipple down and remove BOP stack and spools. Make final clean cut on 3 1/2" casing. Run control lines through 3 1/2" packoff and terminate. Set and install packoff. Install swage-lok fittings around control lines. Run in lock-down pins. Test packoff to 5000psi. Nipple up 13 5/8" by 3 1/8" 5M tubing head adaptor to the 3 1/8" 5M tree, terminating control lines through the bottom flange. Set 2-way check valve in tubing hanger. Fill tree with methanol and test to 5000psi. Install BPV. Install EXCAPE control line warning sign. Completion to be done without a rig. Craig Silva and John Lundy finish rigging down all the remaining rig and camp systems, the conduit for the network and satellite lines and the equipment in Epoch Unit #6. Unit #6 is loaded, organized and secured for its move to the next location. 12105/2005: Begin rig down and move of Glacier No.1 rig and camp. Start moving all modules, equipment, communication lines and camp trailers and moving on to next location. ~~ EPQ~H 19 • • • MNiGTXON MARATHON OIL COMPANY KBU 11-7 4.2. SURVEY RECORD Measured Depth Inclination Azimuth TVD Vertical Section Rectangular Coordinate (+) N/S (-) Rectangular Coordinate (+) ENV (-) Closure Closure Azimuth DLS (ft) de ) (deg) (ft) ft (ft) ft (ft) de (deg/100ft) 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00 Tie-in 135 0.6 333-4.9 135.00 -0.65 0.64 -0.30 0.71 334.90 0.44 196 0.7 311.7 195.99 -1.20 1.18 -0.71 1.38 328.78 .0.46 257 0.8 297.6 256.99 -1.67 1.62 -1.37 2.12 319.84 .0.34 318 1.0 297.4 317.98 -2.15 2.06 -2.22 3.03 312.93 .0.33 378 1.0 296.3 377.97 -2.66 2.54 -3.15 4.05 308.82 0.03 438 1.3 295.2 437.96 -3.22 3.06 -4.24 5.23 305.82 0.50 499 1.2 238.9 498.95 -3.23 3.02 -5.41 6.20 299.20 1.94 560 2.9 193.5 559.91 -1.44 1.19 -6.32 6.43 280.70 3.65 620 5.0 188.4 619.75 2.60 -2.87 -7.06 7.62 247.87 3.55 681 6.9 191.8 680.43 8.76 -9.09 -8.19 12.23 222.04 3.17 742 8.1 195.0 740.91 16.42 -16.82 -10.05 19.60 210.86 2.08 804 9.0 201.7 802.22 25.03 -25.55 -12.98 28.66 206.93 2.16 867 9.6 197.9 864.39 34.47 -35.13 -16.42 38.77 205.05 1.36 931 10.1 179.5 927.47 45.09 -45.82 -18.01 49.23 201.45 4.96 994 10.9 173.4 989.41 56.55 -57.26 -17.27 59.81 196.79 2.17 1057 11.5 174.6 1051.21 68.76 -69.43 -16.00- 71.25 192.98 1.02 1120 12.0 174.9 1112.89 81.57 -82.21 -14.83 83.53 190.22 0.80 1183 13.2 175.9 1174.37 95.30 -95.90 -13.73 96.88 188.15 1.94 1247 15.2 175.9 1236.41 110.99 -111.56 -12.61 112.27 186.45 3.12 1310 16.7 176.3 1296.99 128.30 -128.84 -11,43 129.34 185.07 2.39 1373 17.7 176.6 1357.17 146.92 -147.43 -10.28 147.79 183.99 1.59 1436 18.5 175.0 1417.05 166.48 -166.95 -8.84 167.18 183.03 1.49 1499 19.5 174.2 1476.62 186.96 -187.37 -6.91 187.49 182.11 1.64 1562 20.7 173.6 1535.78 208.56 -208.89 -4.60 208.94 181.26 1.93 1625 21.9 174.4 1594.48 231.39 -231.65 -2.21 231.66 180.55 1.96 ~~ EI'C~CH 20 • MGNp1'f10N MARATHON OIL COMPANY KBU 11-7 • Measured Depth ~nctination Azimuth ~/p Vertical Section Rectangular Coordinate Rectangular Coordinate Closure Closure Azimuth DLS (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (deg) (deg/100ft) 1672 22.6 174.0 1637.98 249.16 -249.36 -0.42 249.36 180.10 1.52 1754 22.6 174.7 1713.68 280.61 -280.72 2.69 280.73 179.45 0.33 1818 22.7 176.6 1772.74 305.24 -305.29 4.56 305.32 179.15 1.15 1944 22.9 176.8 1888.90 354.05 -354.03 7.37 354.11 178.81 0.17 2071 22.9 177.3 2005.89 403.47 -403.39 9.91 403.51 178.59 0.15 2196 23.2 178.2 2120.91 452.41 -452.29 11.83 452.44 178.50 0.37 2323 23.9 178.8 2237.33 503.15 -503.01 13.15 503.19 178.50 0.58 2449 25.0 178.8 2352.03 555.29 -555.15 14.24 555.34 178.53 0.87 2574 24.8 178.4 2465.41 607.91 -607.77 15.53 607.96 178.54 0.21 2700 24.7 177.8 2579.84 660.66 -660.49 17.28 660.71 178.50 0.21 2827 24.5 178.5 2695.31 713.53 -713.33 18.99 713.58 178.48 0.28 2955 24.6 178.6 2811.74 766.71 -766.49 20.33 766.76 178.48 0.08 3080 24.1 178.3 2925.62 818.24 -818.01 21.72 818.30 178.48 0.41 3207 24.0 177.5 3041.60 870.00 -869.73 23.62 870.05 178.44 0.27 3335 23.9 177.3 3158.57 921.96 -921.64 25.98 922.01 178.39 0.10 3461 24.0 178.0 3273.73 973.10 -972.74 28.07 973.15 178.35 0.24 3586 23.8 177.4 3388.01 1023.74 -1023.34 30.11 1023.79 178.31 0.25 3711 23.7 177.8 3502.42 1074.09 -1073.64 32.21 1074.13 178.28 0.15 3836 23.5 177.5 3616.97 1124.13 -1123.65 34.27 1124.17 178.25 0.19 3963 23.1 176.7 3733,61 1174.36 -1173.81 36.80 1174.39 178.20 0.40 4090 23.0 177.3 3850.47 1224,08 -1223.47 39.41 1224.10 178.16 0.20 4153 22.9 176.9 3908.48 1248.64 -1248.00 40.65 1248.67 178.13 0.29 4216 22.1 177.3 3966.69 1272.75 -1272.08 41.87 1272.77 178.11 1.29 4280 20.5 177.2 4026.31 1296,00 -1295.30 42.99 1296.02 178.10 2.50 4342 18.9 178.6 4084.68 1316.89 -1316.19 43.76 1316.91 178.10 2.69 4403 17.6 178.0 4142.61 1336.00 -1335.28 44.32 1336.02 178.10 2.15 4466 17.0 177.0 4202.76 1354.73 -1354.00 45.14 1354.75 178.09 1.06 4529 16.9 176.6 4263.03 1373.09 -1372.33 46.16 1373.11 178.07 0.24 4595 15.9 178.5 4326.34 1391.72 -1390.95 46.97 1391.74 178.07 1.72 ~~ ~~~~r1 21 • ~"""~"~" MARATHON OIL COMPANY KBU 11-7 47 Measured Depth inclination Azimuth gyp Vertical Section Rectangular Coordinate Rectangular Coordinate Closure Closure Azimuth DLS (ft) (deg) (deg) (ft) ft) (ft) (ft) ft) deg) (deg/100ft) 4656 14.0 178.1 4385.27 1407.46 1406.68 47.33 1407.48 178.07 3.12 4720 12.1 175.3 4447.62 1421.90 1421.10 48.24 1421.92 178.06 3.13 4783 10.4 172.8 4509.41 1434.17 1433.32 49.49 1434.18 178.02 2.81 4846 9.8 171.3 4571.43 1445.16 1444.27 51.02 1445.17 177.98 1.04 4910 9.7 172.1 4634.51 1455.94 1454.99 5258 1455.94 177.93 0.26 4971 8.8 172.2 4694.71 1465.69 1464.70 53.92 1465.70 177.89 1.48 5033 8.1 174.4 4756.04 1474.77 1473.75 54.99 1474.78 177.86 1.24 5099 8.1 173.6 4821.38 1484.05 1483.00 55.96 1484.05 177.84 0.17 5160 8.4 174.6 4881.75 1492.79 1491.70 56.86 1492.79 177.82 0.55 5223 8.4 173.1 4944.07 1501.97 1500.85 57.85 1501.97 177.79 0.35 5285 7.4 171.5 5005.48 1510.45 1509.30 58.98 1510.45 177.76 1.65 5350 5.6 174.9 5070.06 1517.78 1516.60 59.88 1517.78 177.74 2.83 5412 3.6 179.3 5131.86 1522.75 1521.56 60.17 1522.75 177.74 3.27 5475 2.8 183.4 5194.76 1526.26 1525.07 60.11 1526.26 177.74 1.32 5529 2.8 174.2 5248.70 1528.88 1527.70 59.93 1528.88 177.75 0.07 5631 2.4 183.1 5350.59 1533.48 1532.32 59.63 1533.48 177.77 0.40 5695 2.4 180.9 5414.54 1536.15 1535.00 59.54 1536.15 177.78 0.14 5785 1.2 166.3 5477.50 1538.12 1536.96 59.68 1538.12 177.78 2.02 5821 0.7 82.0 5540.50 1538.72 1537.55 60.21 1538.73 177.76 2.11 5948 0.6 110.7 5667.49 1538.91 1537.67 61.60 1538.91 177.71 0.26 6074 0.5 81.8 5793.48 1539.10 1537.83 62.77 1539.11 177.66 0.23 6189 0.7 86.7 5918.48 1539.03 1537.71 64.07 1539.04 177.61 0.17 6323 0.7 100.3 6042.47 1539.18 1537.80 65.57 1539.20 177.56 0.13 6450 1.0 100.0 6169.45 1539.59 1538.13 67.42 1539.61 177.49 0.24 6513 1.0 95.8 6232.44 1539.78 1538.28 68.51 1539.81 177.45 0.12 6640 0.6 78.7 6359.43 1539.83 1538.26 70.27 1539.87 177.38 0.36 6766 1.0 91.8 6485.42 1539.80 1538.17 72.01 1539.85 177.32 0.35 6892 1.0 94.1 6611.40 1540.00 1538.28 74.21 1540.07 177.24 0.03 7018 1.0 90.4 6737.38 1540.17 1538.37 76.40 1540.26 177.16 0.05 ~~ ~1 ~~~ 22 • ~"°"TM°" MARATHON OIL COMPANY KBU 11-7 Measured Depth inclination Azimuth ND Vertical Section Rectangular Coordinate (+) N/S (-) Rectangular Coordinate (+) ElW (-) Closure Closure Azimuth DLS (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (deg) (deg/100ft) 7144 1.2 65.8 6863.36 1539.73 1537.83 78.71 1539.85 177.07 0.40 7269 1.0 76.4 6988.34 1539.02 1537.04 80.96 1539.17 176.98 0.23 7396 1.3 77.3 7115.31 1538.54 1536.46 83.44 1538.73 176.89 0.24 7522 1.2 98.0 7241.28 1538.31 1536.13 86.16 1538.54 176.79 0.22 7646 1.1 88.2 7365.26 1538.34 1536.07 88.65 1538.62 176.70 0.08 7775 1.0 93.6 7494.23 1538.27 1535.90 91.00 1538.60 176.61 0.10 7852 1.4 78.4 7571.22 1538.07 1536.64 92.59 1538.43 176.55 0.54 **7900 1.4 78.4 7619.20 1537.87 1535.40 93.74 1538.26 176.51 0.00 *"Pro'ected ~~ EPC~-CH 23 • • M MARATHON OIL COMPANY KBU 11-7 4.3. MUD RECORD Contractor: MI Drilling Fluids Mud Type: Gelex/ Spud Mud: 138' -1725' 6% KCI FloPro: 1725'-7900' DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIUH2O SD MBT pH Alk CI- Ca+ 11 /09/2005 138 / 138 8.4 32 7.8 11 /10/2005 186 / 186 8.7 53 7 28 18!22/27 16.0 2 3.0 0/97 TR 28.0 8.8 0.20 240 40 11 /11/2005 522 / 522 8.8 46 7 26 17125/ 9.0 11 /11 /2005 973 / 969 8.9 45 8 24 17/28 9.2 11 /11 /2005 1477 / 1456 9.0 43 8 23 16/25/36 9.2 2 5.0 0/95 0.50 23.0 9.8 0.35 300 80 11 /12/2005 1725 / 1687 8.9 44 8 24 17/27/38 5.6 2 5.0 0/95 0.50 23.0 9.6 0.30 300 80 11/12/2005 1725 / 1687 9.2 42 9 20 13/19/23 6.2 2 5.0 0195 0.50 19.0 9.2 0.20 280 80 11/13/2005 1725 / 1687 9.3 40 8 22 11/18/23 7.4 2 5.5 0/95 0.50 18.0 8.3 0.0 180 0 11/142005 1725 / 1687 9.3 40 8 22 11/18/23 7.4 2 5.5 0/95 0.50 18.0 8.3 0.0 180 0 11 /14/2005 172511687 9.0 37 8 15 6/7/7 6.6 1 4.0 0/96 0.0 0.0 9.1 0.25 29000 140 11 /15/2005 218012106 9.1 39 8 17 5/6/7 6.5 1 4.0 0/96 0.0 0.0 9.6 0.30 29000 80 11 /15/2005 2822 / 2691 9.4 40 8 18 6/10/11 7.2 1 5.5 0/95 0.75 2.0 9.5 0.30 30000 40 11 /16/2005 3728 / 3518 9.3 42 11 19 8/12/15 8.2 1 5.0 0/95 0.75 3.0 9.5 0.30 31000 60 11 /16/2005 4460 / 4197 9.1 42 11 18 7/10/13 7.8 1 4.5 0/96 0.50 5.0 9.0 0.20 31500 240 11 /17/2005 4575 / 4307 9.3 45 12 17 6/11 /13 8.2 1 5.0 0/95 0.25 7.0 8.7 0.15 32000 180 11 /17/2005 5080 / 4803 9.3 44 11 15 5/8/10 8.6 1 5.0 0/95 0.25 8.0 9.6 0.50 32000 80 11 /18/2005 5080 / 4803 9.3 45 12 17 8/11 /13 9.0 1 5.5 0/95 0.25 9.0 9.8 0.60 31000 60 11 /18/2005 5160 / 4882 9.4 50 12 20 6/9/11 7.5 1 6.0 0/94 0.25 10.0 9.8 0.6 31000 60 11 /19/2005 5171 / 4893 9.5 52 14 19 5/9/11 7.2 1 6.5 0/94 0.25 10.0 9.8 0.60 31000 60 11 /19/2005 5249 i 4970 9.3 56 15 20 6/8/10 6.7 1 5.0 0195 0.25 10.0 9.9 0.70 31000 80 11 /20/2005 5249 / 4970 9.4 56 15 22 6/10/12 7.2 1 6.5 0/94 0.25 10.0 9.6 0.60 31000 40 11 /20/2005 5449 / 5169 9.4 53 15 23 6/10/12 7.0 1 6.5 0/94 0.25 10.0 9.6 0.60 31000 40 11 /21 /2005 5585 / 5305 9.6 59 17 23 6/10/12 7.3 1 8.0 0/92 0.50 10.0 9.9 0.60 31000 40 11/22/2005 5585 / 5305 9.5 58 16 24 6/10/12 7.0 1 7.0 0/93 0.25 10.0 9.6 0,50 29000 60 ~~ ~~~~~ 24 • • • Maaalxnx MARATHON OIL COMPANY KBU 11-7 Mud Tvoe: 6% KCI FloPro: 1725'-7900' DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIUH2O SD MBT pH Alk CI- Ca+ 11 /23/2005 5585 / 5305 9.5 54 17 23 7/12/14 7.0 1 6.5 0/94 0.125 11.0 9.6 0.50 31000 80 11 /24/2005 5585 / 5305 9.5 52 17 21 6/11114 7.4 1 7.0 0/93 TR 11.0 9.6 0.50 30500 60 11 /25/2005 5585 / 5305 9.5 56 17 22 5/10/12 8.2 1 7.0 0/93 TR 11.0 9.3 0.40 30000 60 11 /26/2005 5795 / 5515 9.5 55 23 26 9/12/14 7.2 2 7.0 0/93 0.25 9.0 9.9 1.60 30000 20 11 /26/2005 5869 / 5588 9.5 56 22 26 9/12/14 6.8 2 7.0 0/93 0.25 9.0 9.6 1.30 30000 0 11 /27/2005 6390 / 6109 9.6 57 22 23 7/10/12 6.2 2 7.5 0/93 0.10 10.0 9.2 0.80 30000 20 11 /27/2005 6940 / 6659 9.9 55 21 23 6/10/12 5.8 2 9.0 0/91 0.10 11.0 9.3 0.80 30000 20 11 /28/2005 7336 / 7055 9.9 55 25 27 8/11 /13 6.6 2 9.0 0/91 0.25 11.0 9.3 0.70 29500 20 11/28/2005 7770 / 7489 10.3 59 26 27 8/12/14 6.0 2 11.0 0/89 0.25 11.0 12.0 0.80 29000 60 11 /29/2005 7900 / 7619 10.3 59 26 27 6/8/ 9.5 11 /29/2005 7900 / 7619 10.5 65 27 29 8/11 /14 5.8 2 12.0 0/88 0.50 12.0 9.8 0.9 28000 80 11!30/2005 7900 / 7619 10.5 68 23 23 5/9/12 5.8 1 12.0 0/88 0.50 12.0 9.6 0.70 28000 80 12/01/2005 7900 / 7619 10.6 68 26 30 7/11/14 5.1 1 12.5 0/88 0.50 12.0 9.5 0.70 29000 60 12/02/2005 7900 / 7619 10.7 71 26 28 7/11/14 5.2 1 12.5 0/88 0.50 12.0 9.3 0.60 29000 60 12/03/2005 7900 / 7619 8.6 28 1 1 KCI Brine 1.0 0/99 7.7 30000 ~~ ~~~1r~ 25 • • ~" MARATHON OIL COMPANY KBU 11-7 4.4. 8!T RECORD BIT SIZE JETS/ AVE WOB R PP NO. °° TYPE S/N TFA IN OUT FT HRS ROP Lo -Avg - P Lo -Avg CONDITION Hi M - Hi 1 16 0 HCC 6022173 3x18, 44 186 142 1 58 3 127 0.7 - 4.1 - - 541 - 546 1-1-NO-A-E-1-NO-BHA . MXDS1 DX 1 x16cj . . 9.9 - 550 2 16 0 HCC 6022079 3x18, 186 1725 1539 13 58 151 2 0.3 - 6.5 - - 583 -1167 0-0-NO-A-E-1-NO-TD . MXDS1DX 1x16cj . . 21.0 - 1513 3 12 25 HCC 5082062 3x18, 1725 5080 3355 34 75 136 1 0.4 -11.9 - 731 -1543 1-1-CT-S-D-1/16-NO- . MXL-1 1x12c~ . . 32.3 -1791 TD 4 8.5 Core HTC 7104226 1.00 5080 5160 80 6.93 32.4 1.6 - 3.4 293 - 323 0-0-NO-A-X-1-NO-CP Bit AXC-425 TFA - 5.2 - 355 4 8.5 e HTC 7104226 1.00 5160 5249 89 5.62 23.9 2.4 - 3.8 311 - 401 1-1-WT-A-X-1-NO-BHA RR1 Bit AXC-425 TFA _ 6.0 - 410 3 12 25 HCC 5082062 3x18, 5249 5585 336 10 69 48 2 6.0- 25.6 - 395 -1979 3-3-CT-A-E-1/16-WT- RR1 MXL-1 1x12c~ . . 43.3 - 2073 TD 1.3-19.7 - 1329 - 5 8.5 MX C1 6028339 1x10cj 5585 5869 284 5.08 75.8 33.0 1562 0-0-NO-A-E-1-NO-BHA -1802 HCC 0 - 7- 8 0 1224 - 6 8.5 HCM605Z 7106613 5x15 5869 7900 2031 23.76 105.4 . . 15.6 1856 1-1-VVT-A-X-1-NO-TD - 2106 8 5 6028339 ~~g' 7900 7900 0 n/a n/a n/a n/a NG RR1 ' MX C1 Clean out run only n 11 /212005 11 /3/2005 11 /4/2005 11 /5/2005 11 /6/2005 11 /7/2005 11/8/2005 11 /9/2005 11/10/2005 11/11/2005 11/12/2005 11/13/2005 11/14/2005 11/15/2005 11/16/2005 11/17/2005 1/18/2005 11/19/2005 11 /20/2005 11 /21 /2005 11 /22/2005 11 /23/2005 11 /24/2005 11 /25/2005 11 /26/2005 11 /27/2005 11 /28/2005 11/29/2005 11 /30/2005 12/1 /2005 12/2/2005 12/3/2005 ~ 12/4/2005 ~ • cn i3 D D O O • (~ O D z c • 25 ~ D~ TH (~, ~ NN c~~ _ _ _ _ _ _ Z5 ~S o Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT ~ ~~~~~ KBU 41-7 REPORT FOR John Nicholson /Dave Morris DATE Nov 09, 2005 DEPTH 138 PRESENT OPERATION Continued rig up operations, work on Topdrive hydraulics TIME 24:00 YESTERDAY 138 24 HOUR FOOTAGE 0 CASING INFORMATION 20" @ 138' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 138 / 138 TVD MW 8.4 VIS 32 PV YP FL Gels CL- FC Mixing spud mud SOL SD OIL MBL pH 7.8 Ca+ CCI MWD SUMMARY INTERVAL TO OOLS AS 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) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY Nipple up diverter stack. Install knife valve. Bolt up diverter line. Finish up berm construction. Start filling pits with water. Set M-I ACTIVITY centrifuge van. Set tanks. Construct berm around centrifuge van. Rig up Topdrive strong-back and rail. Pickup Topdrive and SUMMARY make up function lines. Test run Top drive. Fix leak observed behind control panel. Cha nge gear box oil. Work on Topdrive hydraulics. EPOCH PERSONNEL ON BOARD 2 DAILY COST Rig up: 1700 REPORT BY Craig Silva • Marathon Oil Company Kenai Gas Field DAILY wELLSITE REPORT ~=~ EI'O-CH KBU 11-7 REPORT FOR John Nicholson /Dave Morris DATE Nov 10, DEPTH 186 PRESENT Circulating bottoms up before pulling out of hole to pick up directional 2005 OPERATION assembly. TIME 24:00 YESTERDAY 138 24 HOUR FOOTAGE 48 CASING INFORMATION 20" @ 138' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 (Old rerun) 16.0 HCG MXDS1 DX 6022173 3x18, 1x16cj 44 186 142 1.58 1-1-A-A-1-NO-BHA BHA change DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 358.6 @ 139.00 24.9 @ 180.00 127.3 51.8 FT/HR SURFACE TORQUE 2479 @ 186.00 992 @ 163.00 1212.3 2479.6 AMPS WEIGHT ON BIT 9.9 @ 148.00 0.7 @ 181.00 4.1 3.2 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 550 @ 185.00 541 @ 139.00 556.9 549.7 PSI DRILLING MUD REPORT DEPTH 186 / 186 TVD MW 8.7 VIS 53 PV 7 YP 28 FL 16.0 Gels 18/22/27 CL- 240 FC 2 SOL 3.0 SD TR OIL 0197 MBL 28.0 pH 8.8 Ca+ 40 CCI MWD SUMMARY TERVAL TO TOOLS GAS SUMMARY (units} HIGH LOW AVERAGE DITCH GAS 2 @ 155 0.4 @ 183 1.5 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm} SURVEY METHANE (C-1} 428 @ 155 92 @ 183 305.4 CONNECTION GAS HIGH ETHANE (C-2} @ @ AVG PROPANE (C-3} @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 1 / 1.5 PENTANE (C-5} @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHO LOGY PRESENT LITHOLOGY Nipple up pitcher nipple, flowline, trip tank fill line, fill line valve and kill line. Heat trace and insulate suction line for mud pump #3. Finish building spud mud. Install bails and elevator on Topdrive. Inspect pins and keepers. Function test Topdrive. Route hoses to DAILY Topdrive. Hang tongs. Rig up and load up rig floor. Hook up kelly hose. Hang spinners. Install mousehole. Hold weekly safety ACTIVITY meeting and review for all hands. Test Topdrive and do fine adjust of Topdrive controls. Test gas alarms. Performance test Hydril SUMMARY and knife valve. Check flow sensor and PVT indicators. Pick up and make short bottom hole assembly (with old rerun bit) for drilling out conductor. Tag top of conductor fill at 44'. Spud well and drill out conductor from 44' to 138'. Drill new hole outside of conductor from 138' to 186'. Circulate bottoms up. Circulate and condition spud mud. ~POCH PERSONNEL ON BOARD 2 DAILY COST ML: 2040 RW: 410 Rig Up: 1700 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT ~ ~~Q~H KBU 11-7 REPORT FOR John Nicholson /Dave Morris DATE Nov 11,2005 DEPTH 1553 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 186 24 HOUR FOOTAGE 1367 CASING INFORMATION 20" @ 138' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 135 0.6 334.9 135.00 620 5.0 188.4 619.76 SURVEY DATA 931 10.1 179.5 927.47 1247 15.2 175.9 1236.41 1562 20.7 173.6 1535.78 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS TIB/C PULLED 2 16.0 HCC MXDS1 DX 6022079 3x18, 1x16cj 186 1367 11.68 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 370.7 @ 718 10.4 @ 216 152.1 241.6 FT/HR SURFACE TORQUE 2422 @ 1023 0 @ Sliding 1855.6 1434.4 AMPS WEIGHT ON BIT 21.1 @ 755 0.6 @ 1003 6.5 3.6 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1439 @ 1147 583 @ 571 1134.5 1346.7 PSI DRILLING MUD REPORT DEPTH 1477 / 1456 TVD MW 9.0 VIS 43 PV 8 YP 23 FL 9.2 Gels 16/25/36 CL- 300 FC 2 SOL 5.0 SD 0.5 OIL 0/95 MBL 23.0 pH 9.8 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 54 @ 1 344 0.5 @ 498 9.0 TRIP GAS 3 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 10906 @ 1 344 93 @ 498 1794.3 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 12 / 22 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY Pull out of hole (from 186'). Pick up and make up directional bottom hole assembly. Scribe, orient, run in hole and test SUMMARY mudmotor and MWD tools. Run in and tag bottom at 186'. Drill (rotating) from 186'to 215'. Troubleshoot minor Topdrive hydraulic problem. Drill (rotating and sliding} from 215' to 1553'. r r ~POCH PERSONNEL ON BOARD 2 DAILY COST ML: 2040 RW: 410 REPORT BY Craig Silva r POCH PERSONNEL ON BOARD 2 Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT ~ E~I~~,H KBU 11-7 REPORT FOR John Nicholson /Dave Morris DATE Nov 12, 2005 DEPTH 1725 PRESENT OPERATION Picking up and running in 5" drill pipe in hole to sting in for cement job TIME 24:00 YESTERDAY 1553 24 HOUR FOOTAGE 172 CASING INFORMATION 20" @ 138' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1625 21.9 174.4 1594.48 SURVEY DATA 1672 22.6 174.0 1637.98 1725 (Projection) 23.4 174.0 1686.76 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS TIB/C PULLED 2 16.0 HCC MXDS1DX 6022079 3x18, 1x16cj 186 1725 1539 13.58 0-0-NO-A-E-1-NO-TD Casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 307.9 @ 1705 12.5 @ 1682 144.9 256.3 FT/HR SURFACE TORQUE 1742 @ 1705 0 @ Sliding 1642.5 1634.6 AMPS WEIGHT ON BIT 10 @ 1689 2 @ 1711 6.3 7.6 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1513 @ 1705 1280 @ 1714 1436.8 1335.1 PSI DRILLING MUD REPORT DEPTH 1725 / 1687 TVD MW 9.2 VIS 42 PV 9 YP 20 FL 6.2 Gels 13/19/23 CL- 280 FC 2 SOL 5.0 SD 0.5 OIL 0/95 MBL 19.0 pH 9.2 Ca+ 80 CCI WD SUMMARY INTERVAL TO TOOLS GAS SUMMARY {units) HIGH LOW AVERAGE DITCH GAS 31 @ 1663 10 @ 1571 20.1 TRIP GAS 3 (Circulating casing) CUTTING GAS @ @ WIPER GAS 16 CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 6350 @ 1663 2145 @ 1571 4021.5 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGYIREMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Drill (rotating and sliding} from 1553' to 1725'. Circulate bottoms up. Circulate and condition mud. Check for flow. Pump dry job. Pull out of hole(SLM) to 70' on wiper trip. Lubricate rig. Run in hole to 1725'. Circulate bottoms up. Record 16 units of wiper gas. Pump DAILY around Hi-Vis sweep. Observe 50% increase in cuttings volume with sweep. Circulate and condition hole. Check for flow. Pump dry ACTIVITY job. Blow down Topdrive. Pull out of hole. Handle and stand back bottom hole assembly. Lay down stabilizer and break bit. Rig up SUMMARY Weatherford casing running tools. Hold pre-job meeting on casing running procedures. Run 13 3/8" casing to 1717' and hang off in elevators. Circulate hole clean. Clean rig floor. Make up false rotary. Change bails and elevators. Rig up rig tongs. Lay down and load off casing running tools. Rig up false rotary. Make up stab-in sub and centralizer on 5" drill pipe. Run 15 stands of drill pipe inner string in hole. DAILY COST ML: 2040 RW: 410 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT ~ ~~~~H KBU 11-7 REPORT FOR John Nicholson /Dave Morris DATE Nov 13, 2005 DEPTH 1725.00 PRESENT OPERATION Nippling up BOPs TIME 24:00 YESTERDAY 1725.00 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 1717' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T1B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FTJHR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1725 / 1687 TVD MW 9.3 VIS 40 PV 8 YP 22 FL 7.4 Gels 11/18/23 CL- 180 FC 2 SOL 5.5 SD 0.5 OIL 0l95 MBL 18.0 pH 8.3 Ca+ 0 CCI MWD SUMMARY INTERVAL TO TOOLS AS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 3 @ Circ around casing 0.5 @ Displacing 1 Circ and displacing TRIP GAS 3 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Strap, drift, pickup, make up and run in hole 22 joints of 5" drill pipe inner string. Tag sting-in collar and space out drill pipe. Sting into, and latch onto, stab-in float collar. Circulate and condition mud. (Record 3 units of trip gas). Pump 40 bbl spacer. Test cementing lines to 2500psi. Mix and pump 243 bbls of 12.Oppg Type 1 cement slurry. Load plug. Pump 28 bbls of mud and displace cement. No losses during cementing, and estimated 5 bbls of cement reached the surface after displacing. Cement in place. Unsting and pull up DAILY hole to 1572'. Shear out drill pipe wiper plug and circulate hole clean. Treated 50 bbls in active mud system with sodium bicarbonate ACTIVITY to neutralize any cement contamination. Pull inner string out of hole to 1190'. Flush stack and mud line with lignosulfanate cement SUMMARY retarder. Blow down all lines. Pull out of hole with stab-in assembly. Rig down cementing equipment. Clear and clean rig floor. Wait on cement. Begin emptying pits, hauling off mud, and then cleaning all pits and lines. Nipple down, clean and load off diverter line. and knife valve. Rough cut and pull 13 3/8" casing (27.17'total). Nipple down flow line, kill line, fill-up line, trip tank lines and pitcher nipple. Remove starting head. Make final cut on 13 3/8" casing and bevel. Install 13 3/8" slip-lock connection by 13 5/8" 5M flanged multibowl wellhead and pressure test (to 1950psi for 10 minutes). Fill pits with water and begin to build new Flo-Pro mud system. Nipple up 13 5/8" 5M BOPs. ~POCH PERSONNEL ON BOARD 2 DAILY COST ML: 2040 RW: 410 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY wELLSITE REPORT ~~ EPC~GH KBU 11-7 REPORT FOR John Nicholson /Dave Morris DATE Nov 14, 2005 DEPTH 1725 PRESENT OPERATION Picking up 5"drill pipe and running in hole TIME 24:00 YESTERDAY 1725 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 1717' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 12:25 HCC MXL-1 5082062 3x18, 1x12cj 1725 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1725 / 1687 TVD MW 9.0 VIS 40 PV 8 YP 22 FL 7.4 Gels 11/18/23 CL- 180 FC 2 SOL 5.5 SD 0.5 OIL 0/95 MBL 18.0 pH 8.3 Ca+ 0 GCI MWD SUMMARY INTERVAL TO OOLS 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) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue building Flo-Pro mud system. Nipple up BOPS, stack, flowline, kill line, choke, pitcher nipple, accumulator lines and trip tank line. Pull wear ring. Set test plug. Rig to test BOPs. Test all BOPE (hydril, dart, upper and lower kelly, check valve, inside and outside DAILY kill, floor valve, choke manifold valves 1-12, blind rams) to 250psi Low13000psi High for 10 minutes. Run performance test on ACTIVITY accumulator. Rig down testing equipment. Pull test plug. Set wear ring. Test 13 3/8" casing to 1000psi for 30 minutes. Blow down SUMMARY surface equipment. Handle and remake directional bottom hole assembly. (Change out UBHS sleeve, make up bit, change AKO from 1.5 to 1.3 and make up string stabilizer). Orient MWD tools. Run in flex collar crossover and function test MWD. Make up lower assembly to HWDP and run in hole. Rack, strap, drift, pickup, make up, run in hole and pull out standing back 108 joints/54stands of new 5" drill pipe (to have 78 total stands of 5" drill pipe). r EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2700 RW: 410 • REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT ~ ~~~~~ KBU 11-7 REPORT FOR John Nicholson /Dave Morris DATE Nov 15, 2005 DEPTH 3072 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 1725 24 HOUR FOOTAGE 1347 CASING INFORMATION 13 3/8" @ 1717' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1754 22.6 174.7 1713.68 SURVEY DATA 2449 25.0 178.8 2352.03 3080 24.1 178.3 2925.62 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B!C PULLED 3 1225 HCC MXL-1 5082062 3x18, 1x12cj 1725 1347 10.29 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 2$0.5 ~ 2505 9.2 @ 3014 158.1 185.9 FT/HR SURFACE TORQUE 1816 @ 3069 0 @ Sliding 1685.3 1794.2 AMPS WEIGHT ON BIT 24.8 @ 2401 0.5 ~ 1825 9.1 9.9 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1678 @ 2989 731 @ 1727 1410.9 1597.6 PSI DRILLING MUD REPORT DEPTH 2822 / 2691 TVD MW 9.4 VIS 40 PV 8 YP 18 FL 7.2 Gels 6110!11 CL- 30000 FC 1 SOL 5.5 SD 0.75 OIL 0/95 MBL 2.0 pH 9.5 Ca+ 40 CCI WD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 52 @ 2999 2 @ 1797 19.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 10553 @ 2999 530 @ 1797 3813.6 CONNECTION GAS HIGH ETHANE (G2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 10 / 28 PENTANE (C-5) HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone. PRESENT LITHOLOGY ..........SAND/SANDSTONE.......... Continue to drift, strap, pickup, make up, run in hole and pull out standing back 5"drill pipe. Run in hole to 1526'. Break DAILY circulation. Run in hole and tag cement at 1631'. Drill out cement and shoe track from 1 631' to 1725'. Drill 21' of new hole from ACTIVITY 1725' to 1746'. Circulate bottoms up. Build 40 bbl Hi-Vis spacer. Pump spacer and then displace mud in hole with new 6% KCL SUMMARY Flo-Pro mud. Perform Formation Integrity Test (to 15.2ppg EMW). Blow down choke, choke manifold and kill line. Drill from 1746' to 3072'. l1 EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 2700 RW: 410 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT ~ El'UCH KBU 11-7 REPORT FOR Rowland Lawson DATE Nov 16, 2005 DEPTH 4460 PRESENT OPERATION Wiper Trip TIME 24:00 YESTERDAY 3072 24 HOUR FOOTAGE 1388 CASING INFORMATION 13 3/8" @ 1717' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3207 24.0 24.0 3041.60 SURVEY DATA 4153 22.9 22.9 3908.48 4342 18.9 18.9 4084.68 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 12.25 HCC MXL-1 5082062 3x18, 1x12cj 1725 2735 23.87 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 280.0 @ 4146 8.2 @ 3739 139.5 150.9 FT/HR SURFACE TORQUE 2344 @ 4355 0 @ Sliding 2093.7 2144.5 AMPS WEIGHT ON BIT 32 @ 4350 0 @ 3554 11.7 14.7 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1723 @ 4287 1041 @ 4210 1599.1 1619.6 PSI DRILLING MUD REPORT DEPTH 4460 / 4197 TVD MW 9.1 VIS 42 PV 11 YP 18 FL 7.8 Gels 7/10/13 CL- 31500 FC 1 SOL 4.5 SD 0.5 OIL 0/96 MBL 5.0 pH 9.0 Ca+ 240 CCI WD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 324 @ 3585 3 @ 3084 43.8 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 64747 @ 3585 783 @ 3084 8769.5 CONNECTION GAS HIGH ETHANE (C-2) 64 @ 3585 0 @ 0.8 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON Very minor shows SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 3575-3600, 3720- Sandstone= nearly all disaggregated; porosity 324 Max, 165 avg thru Sand/SS: med gry-grnsh gry, of-cgl, dom Fn U to 3738, 4227-4251 and perm cannot be estimated, apparent intervals, general Crse L; mod-poor srtd; solb tuf cly mtrx spprtd; soluble clay matrix background 20u comp grywke; prob poor Por due to matrx cly LITHOLOGY Major Sand/Sandstone, Tuffaceous Clay, Tuffaceous Siltstone, Volcanic Ash. Minor Conglomeratic Sand/Conglomerate, Coal PRESENT .....,.,.,SAND/SANDSTONE..........TUFFACEOUS CLAYSTONE.......... LITHOLOGY DAILY ACTIVITY Drill from 3072' to 4460'. Circulate bottoms up two times. Monitor well. Pump dry job. Pull out of hole from 4460' to 1684' SUMMARY on wiper trip. Service rig. 1/ POCH PERSONNEL ON BOARD 4 REPORT BY Craig Silva DAILY COST ML: 2700 RW: 410 Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT ~ F,~~~~ KBU 11-7 REPORT FOR Rowland Lawson DATE Nov 17, 2005 DEPTH 5080 PRESENT OPERATION Pulling out of hole TIME 24:00 YESTERDAY 4466 24 HOUR FOOTAGE 620 CASING INFORMATION 13 3/8" @ 1717' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4403 17.6 178.0 4142.61 SURVEY DATA 4595 15.9 178.5 4326.34 4783 10.4 172.8 4509.41 4971 8.8 172.2 4694.71 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T!B/C PULLED 3 12.25 HCC MXL-1 5082062 3x18, 1x12cj 1725 5080 3355 34.75 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 238.0 @ 4574 13.5 @ 4865 81.1 26.9 FT/HR SURFACE TORQUE 2506 @ 5063 174 @ 4596 1772.7 2059.3 AMPS WEIGHT ON BIT 32 @ 4592 3 @ 4712 18.6 21.1 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1791 @ 4532 1310 @ 5028 1709.1 1693.3 PSI DRILLING MUD REPORT DEPTH 5080 / 4803 TVD MW 9.3 VIS 44 PV 11 YP 15 FL 8.6 Gels 5/8/10 CL- 32000 FC 1 SOL 5.0 SD 0.25 OIL 0/95 MBL 8.0 pH 9.6 Ca+ 80 CCI WD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 108 @ 4501 4 @ 4778 29.6 TRIP GAS CUTTING GAS @ @ WIPER GAS 94, 75 CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 21688 @ 4501 560 @ 4900 5878.7 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 4/30 PENTANE (C-5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major SandlSandstone, Conglomeratic Sand/Conglomerate, Tuffaceous Claystone, Tuffaceous Siltstone, Volcanic Ash. PRESENT LITHOLOGY ..........SANDSTONE..........TUFFACEOUS CLAYSTONE......:...TUFFACEOUS SILTSTONE.......... Service and lubricate rig. Troubleshoot link tilt switch on Topdrive. Slip and cut 34' of drilling line. Run in hole from 1684' to to 4331'. DAILY Break circulation. Wash and ream from 4331' to 4460'. Record 94 units of wiper trip gas. Drill from 4460' to 5030'. Circulate bottoms ACTIVITY up (to inspect samples for determining core point). Drill from 5030' to 5080'. Circulate bottoms up. Circulate and condition. Pull out SUMMARY of hole to 4080' on wiper trip. Run in hole to 5080'. Circulate bottoms up. Record 75 units of wiper trip gas. Circulate and condition. Begin pulling (first stand) out of hole. ~POCH PERSONNEL ON BOARD 4 DAILY COST ML: 2700 RW: 410 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT E~~~H KBU 11-7 REPORT FOR Rowland Lawson DATE Nov 18, 2005 DEPTH 5160 PRESENT O PERATION Pulling out of hole TIME 24:00 YESTERDAY 5080 24 HOUR FOOTAGE 80 CASING INFORMATION 13 3/8" @ 1717' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5160 (Projection) 8.0 172.2 4881.87 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/G PULLED 3 12.25 HCC MXL-1 5082062 3x18, 1x12cj 1225 5080 3355 34.75 1-1-ER-A-E-1-NO-CP Core point 4 Core Bit 8.5 HTC AXC-425 7704226 TFA 1.00 5080 5160 80 6.93 NG Core jammed DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 82.3 @ 5105 2.3 @ 5154 32.7 4.9 FT/HR SURFACE TORQUE 1964 @ 5112 1785 @ 5144 1903.9 1938.8 AMPS WEIGHT ON BIT 5 @ 5140 1 @ 5081 3.4 4.8 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 355 @ 5088 293 @ 5146 322.5 325.6 PSI DRILLING MUD REPORT DEPTH 5160 / 4882 TVD MW 9.4 VIS 50 PV 12 YP 20 FL 7.5 Gels 6/9/11 CL- 31000 FC 1 SOL 6.0 SD 0.25 OIL 0/94 MBL 10.0 pH 9.8 Ca+ 60 CCI MWD SUMMARY ;JTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 43 @ 5102 1 @ 5153 18.9 TRIP GAS 13 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm} SURVEY METHANE (C-1) 8691 @ 5102 335 @ 5153 3888.2 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No determinations due to extreme SafeCarb contamination. PRESENT LITHOLOGY N/A Pull out of hole (SLM). Handle and stand back drilling bottom hole assembly. Rig up for handling coring assembly. Pick up core DAILY barrels and core bit and make up coring assembly. Run in hole to 5056' and tag fill (excess SafeCarb LCM). Break circulation. ACTIVITY Wash and ream from 5056'to 5080'. Drop ball and pump down to seat. Core from 5080' to 5160'. Circulate bottoms up. Monitor SUMMARY well. Pump dry job. Pull out of hole with coring assembly. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 2700 RW: 410 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT ~ F,P®~H KBU 11-7 REPORT FOR Rowland Lawson DATE Nov 19, 2005 DEPTH 5249 PRESENT OPERATION Pulling out of hole TIME 24:00 YESTERDAY 5160 24 HOUR FOOTAGE 89 CASING INFORMATION 13 3/8" @ 1717' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4RR1 8.5 Core Bit HCC AXC-425 7704226 TFA 1.00 5160 5249 89 5.62 0-0-NO-A-N-1-NO-CP Full core DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 71.9 @ 5233 3.1 @ 5201 24.0 19.4 FT/HR SURFACE TORQUE 2347 @ 5239 1214 @ 5223 1951.1 1941.1 AMPS WEIGHT ON BIT 5 @ 5247 2 @ 5192 3.7 4.0 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 410 @ 5194 311 @ 5223 401.4 398.0 PSI DRILLING MUD REPORT DEPTH 5249 / 4970 TVD MW 9.3 VIS 56 PV 15 YP 20 FL 6.7 Gels 6/8/10 CL- 31000 FC 1 SOL 5.0 SD 0.25 OIL 0/95 MBL 10.0 pH 9.9 Ca+ 80 CCI MWD SUMMARY INTERVAL TO 'OOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 25 @ 5210 2 @ 5175 12.6 TRIP GAS 12 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 5137 @ 5210 580 @ 5175 2516 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Claystone, Tuffaceous Siltstone, Sandstone. Minor Tuffaceous Shale, Coal. PRESENT LITHOLOGY ..........TUFFACEOUS CLAYSTONE..........TUFFACEOUS SILTSTONE.......... Pull out of hole with coring assembly for Core Run #1. Handle and lay down core barrels. Run Gamma tool while pulling core DAILY barrels. (Core #1, Cut 80', Recovered 82.5'). Inspect core bit. Make up a new coring assembly for Core Run #2. Run in hole with ACTIVITY coring assembly to 5056'. Break circulation and wash from 5056'to 5160'. Circulate bottoms up. Space out. Drop ball and pump SUMMARY down to seat. Core from 5160' to 5249'. Circulate bottoms up. Monitor well. Pump dry job. Pull out of hole with coring assembly. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 2700 RW: 410 REPORT BY Craig Silva Marathon Oil Company ~ ~~~~ Kenai Gas Field DAILY WELLSITE REPORT KBU 11-7 REPORT FOR Rowland Lawson DATE Nov 20, 2005 DEPTH 5521 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 5249 24 HOUR FOOTAGE 272 CASING INFORMATION 13 3/8" @ 1717' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5033 8.1 173.6 4756.04 SURVEY DATA 5350 5.6 174.9 5070.06 5529 2.8 184.2 5248.69 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR1 12.25 HCC MXL-1 5082062 3x18, 1x12cj 5249 272 9.06 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 187.2 @ 5493 7.9 @ 5316 40.9 123.1 FTlHR SURFACE TORQUE 3042 @ 5473 0 @ Sliding 2453.5 2397.9 AMPS WEIGHT ON BIT 43 @ 5424 6 @ 5252 26.7 22.4 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 2058 @ 5502.00 395 @ 5253 1974.8 2050.9 PSI DRILLING MUD REPORT DEPTH 5449 / 5168 TVD MW 9.4 VIS 53 PV 15 YP 23 FL 7.0 Gels 6110/12 CL- 31000 FC 1 SOL 6.5 SD 0.25 OIL 0/94 MBL 10.0 pH 9.6 Ca+ CCI 1WD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 180 @ 5493 7 @ 5436 29.1 TRIP GAS 67 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 36090 @ 5493.00 1492 @ 5436 5819.7 CONNECTION GAS HIGH ETHANE (C-2) 37 @ 5493 0 @ 2.0 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 11 124 PENTANE (C-5) @ @ HYDROCARBON poor to possibly fair show in one coarse sand section. SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 5490-5505 Corse conglomeratic sandstone and 180u High, 172u Conglomeratic Sd/CGL: coarse to granule; ang, except w conglomerate; large disaggregated clasts; avg thru inty, 85u rdd v crse and larger; matrix + gr spprtd; good vis por if suspect good porosity and perm background consols comp gywke; many clsts are redeposited sedimentary "rip-up" lithics LITHOLOGY Major Tuffaceous Claystone, Tuffaceous Siltstone, Volcanic Ash, SandstonelSand, Conglomeratic Sand/Conglomerate, Tuffaceous Shale. PRESENT .........,CONGLOMERATIC SANDSTONE/CONGLOMERATE..........TUFFACEOUS CLAYSTONE.......... LITHOLOGY DAILY Pull out of hole with coring assembly for Core Run #2. Handle and lay down core barrels. Run Gamma tool while pulling core ,CTIVITY barrels. (Core #2, Cut 89', Recovered 90'). Inspect core bit. Repair a connection of one of the drawworks hydraulic lines. Lubricate UMMARY rig. Rig down, lay down and load off all coring equipment. Make up directional drilling assembly. Run in hole to 5080'. Ream from ~"' 5080'to 5249', opening up the cored interval from 8 1/2" to 12 1/4". drill (rotating and sliding} from 5249'to 5521'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 2700 RW: 410 Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT ~ ~,~O~H KBU 11-7 REPORT FOR Rowland Lawson DATE Nov 21, 2005 DEPTH 5585 PRESENT OPERATION Wireline logging TIME 24:00 YESTERDAY 5521 24 HOUR FOOTAGE 64 CASING INFORMATION 13 3/8 @ 1717' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5585 (Projection) 2.8 184.2 5304.63 BIT INFORMATION INTERVAL CONDITION REASON N0. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR1 12.25 HCC MXL-1 5082062 3x18 1x12cj 5249 5585 336 10.69 Int. Casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 231.1 @ 5534 5.8 @ 5542 80.0 26.6 FT/HR SURFACE TORQUE 2774 @ 5559 2333 @ 5552 2490.2 2469.5 AMPS WEIGHT ON BIT 24 @ 5533 9 @ 5534 21.3 21.5 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 2073 @ 5558 1928 @ 5534 2026.2 1963.6 PSI DRILLING MUD REPORT DEPTH 5585 / 5305 TVD MW 9.6 VIS 59 PV 17 YP 23 FL 7.3 Gels 8/10/12 CL- 31000 FC 1 SOL 8.0 SD 0.5 OIL 0192 MBL 10.0 pH 9.9 Ca+ 40 CCI MWD SUMMARY vTERVAL TO sOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 39 @ 5575 6 @ 5556 26.9 TRIP GAS CUTTING GAS @ @ WIPER GAS 58 CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 7858 @ 5575 1390 @ 5556 5371.0 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone, Conglomeratic Sand/Conglomerate, Tuffaceous Claystone. Minor Tuffaceous Siltstone, Tuffaceous Shale, Volcanic Ash. PRESENT ..,...,,..SAND/SANDSTONE..........CONGLOMERATIC SAND/CONGLOMERATE.......... LITHOLOGY Drill from 5521' to 5585'. Circulate bottoms up. Circulate hole clean. Pull out of hole to 4500' on wiper trip. (Pulled tight at 5424' to 5411', and at 5374' to 5225'). Run in hole to tight zone at 5185'. Wash and ream from 5185' to 5230'. Run in hole to 5585'. Circulate DAILY bottoms up. Circulate hole clean. Check for flow. Pump dry job. Pull out of hole (SLM). Lay down lower bottom hole assembly ACTIVITY (CSDPs, crossovers, stabilizer, MWD, mudmotor, bit). Hold meeting on wirelining procedures. Rig up Precision Wireline surface SUMMARY equipment. Make up, pickup and run in Quad-Combo open hole', logging assembly. Load sources into density tools on way in. Run in hole to 5585' and log up to 1670'. Pull out of hole. Remove sources. Lay down Quad-Combo logging assembly. Make up MFT logging assembly for pressure sampling. Run in hole to shoe. Wait on selection of pressure points. POCH PERSONNEL ON BOARD 4 DAILY COST ML: 2700 RW: 410 REPORT BY Craig Silva Marathon Oil Company ~ ~~~~~ Kenai Gas Field DAILY WELLSITE REPORT KBU 11-7 REPORT FOR Rowland Lawson DATE Nov 22, 2005 DEPTH 5585 PRESENT OPERATION Pumping through reverse-circulating basket on bottom TIME 24:00 YESTERDAY 5585 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 1717' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S!N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5585 / 5305 TVD MW 9.5 VIS 58 PV 16 YP 24 FL 7.0 Gels 6110/12 CL- 29000 FC 1 SOL 7.0 SD 0.25 OIL 0/93 MBL 10.0 pH 9.6 Ca+ 60 CGI MWD SUMMARY INTERVAL TO TOOLS SAS SUMMARY HIGH LOW AVERAGE (units) Trip gas on wash down after 5 full 2 after several 52, DITCH GAS 52 @ run 1 @ circulations circulations TRIP GAS 10 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm} SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT CURRENT 2/4 BUTANE (C-4) @ @ BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Receive pressure point selection from geologist. Run in hole to 5535' with MFT tool. Attempt 5 pressure points, but all failed to seat and test. Pull out of hole with MFT assembly and lay down MFT tool on catwalk to inspect. MFT tool had broken apart, leaving several arm and pad pieces (of non-mag stainless steel and alloy metal) in the hole. Review and discuss options and procedures for upcoming operations with Marathon office. Decide first action will be a trip and wash down run, in order to push all loose parts DAILY downhole to bottom for a later fishing trip. Rig down Precision Wireline Service. Change out misfuntioning extend arm ram on ACTIVITY Topdrive. Make up 12 1/4" bit and crossover to HWDP. Run in hole to 1739' (below shoe}. Break circulation. Blow down. Run in hole SUMMARY from 1739' to 5525'. Wash and ream from 5525' to 5585'. Circulate bottoms up. Record 52 units of trip gas. Circulate and condition. Check for flow. Pump dry job. Pull out of hole. Lay down jars, cross-over, bit sub and bit. Stand back drill collars. Pick up and make up fishing bottom hole assembly with a reverse circulating sub and basket, and two boot baskets for junk recovery. Run in hole to 5569'. Circulate bottoms up. Wash to bottom at 5585'. Circulate bottoms up. Slowly set down and weight up on RB head while circulaing to seal off fish and loose material and force into catcher fingers. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2585 RW: 410 Consulting: 1100 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT ~ ~,Pa~,H KBU 11-7 REPORT FOR John Nicholson / Rowland Lawson DATE Nov 23, 2005 DEPTH 5585 PRESENT OPERATION Wireline logging with Precision MFT tool TIME 24:00 YESTERDAY 5585 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 1717' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5585 / 5305 TVD MW 9.5 VIS 54 PV 17 YP 23 FL 7.0 Gels 7/12/14 CL- 31000 FC 1 SOL 6.5 SD 0.125 0-L 0/94 MBL 11.0 pH 9.6 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS AS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 6 @ 2nd junk basket run 1 @ Circuting during junk runs 2 during junk runs TRIP GAS 6 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGYlREMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Set RB mill down over junk. Drop ball to reverse circulation. Mill overjunk with reverse basket at 5585'. Pull out of hole to surface with retreived junk. Clean reverse basket and boot baskets. Recovered most of original fish, but some pieces remain downhole. DAILY Make up fishing assembly with reverse circulating basket for 2nd run. Run in hole to 5525' and break circulation. Wash to bottom at ACTIVITY 5525'. Work RB head over fish, pick up and reciprocate several times, mill over and set down with reverse circulating basket. Drop SUMMARY ball to reverse circulation through basket. Pump dry job. Pull out of hole to surface. Clean out baskets. Retreive only a few small pieces ofjunk. Lay down boot baskets, RB basket, top sub, bit sub, cross-overs and jars. Clear and clean rig floor. Hold safety meeting on Wireline procedures with Precision Wireline Services. Rig up PWS. Make up and pick up MFT logging assembly. Run MFT tool in hole to 5457'. Log up taking pressures points from 5457' to 4554'. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2585 RW: 410 Consulting: 1100 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT ~-~ E~Q~H KBU 11-7 REPORT FOR John Nicholson / Rowland Lawson DATE Nov 24, 2005 DEPTH 5585 PRESENT OPERATION Running 9 5/8" casing TIME 24:00 YESTERDAY 5585 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 1717' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5585 ! 5305 TVD MW 9.5 VIS 52 PV 17 YP 21 FL 7.4 Gels 6/11/14 CL- 30500 FC 1 SOL 7.0 SD TR OIL 0/93 MBL 11.0 pH 9.6 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS dAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 4 @ Mag run TG 1 @ Circ on mag run N/A TRIP GAS 4 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Log up with Precision's MFT tool, taking pressures from 4454' to 3766'. Finish logging, pull MFT tool out of hole and lay down logging assembly. Rig down Precision Wireline Services' surface equipment. Pickup and make up a clean out run assembly with magnet and two boot baskets. Run in-hole to 5585'. Circulate bottoms up. (Record 4 units of trip gas). Circulate and condition and reciprocate DAILY magnet and boot baskets. Pull out of the hole. Break and clean off magnet. Break and clean out boot baskets. Lay down baskets, bit ACTIVITY sub jars and magnet. Pull wear bushing. Test run landing joint and hanger. Change pipe rams and test to 250psi Lowt3000psi High SUMMARY for 5 minutes. Adjust torque tube. Change bails and elevators. Make up Lafleurfill-up tool. Rig up Weatherford casing running equipment. Hold pre-job safety meeting for rigging up and running casing. Make up low torque valve on 9 5/8" butt swedge. Function valve, leave in open position and set on rig floor. Pickup 9 5/8" shoe joint and run in hole. Pickup, make up, Bakerlok and run in hole next Z joints of shoe tract. Use fill-up tool and circulate through shoe tract. Continue running 9 5/8" as per program. (Run dog collar as weight requires, and slow running speed if fluid losses are apparent). EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 2700 RW: 410 Consulting: 1100 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT E~~~ ,H KBU 11-7 REPORT FOR John Nicholson / Rowland Lawson DATE Nov 25, 2005 DEPTH 5585 PRESENT OPERATION Picking up and making up bottom hole assembly TIME 24:00 YESTERDAY 5585 24 HOUR FOOTAGE 0 CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 558515305 TVD MW 9.5 VIS 56 PV 17 YP 22 FL 8.2 Gels 5/10/12 CL- 30000 FC 1 SOL 7.0 SD TR OIL 0/93 MBL 11.0 pH 9.3 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS oAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 3 @ Circ before cementing 0 @ Displacing N/A TRIP GAS 3 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG NIA PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running in 9 5/8" casing. Pick up and make up pup joint. Pick up and make up hanger and landing joint assembly. Land out 9 5!8" casing in wellhead with shoe at 5579'. Rig up BJ cementing head. Circulate casing (13900 strokes total at 130spm, 400psi) and condition mud for cementing. Install top and bottom plugs. Switch to BJ cementing line. Pump 5 bbls water and test lines to 3000psi. Drop bottom plug. Pump 30 bbls of 10.Oppg MCS4D sweep, followed by 128 bbls of 12.5ppg lead slurry (298 sacks Class G cement to 84.7 bbls water plus accelerator chemicals) and then 105 bbls of 13.5ppg tail slurry (248 sacks Class G cement to 56.4 bbls and accelerator chemicals). Drop top plug and pump out with 5 bbls of water. Switch back to rig pumps. Displace cement with 411.5 bbls DAILY of mud. (Total displacement is 415.5 bbls}. Bump plug with 1000psi over displacement (1600psi total). Hold for 5 minutes. Bleed off ACTIVITY and check floats. Cement in place. Wait on cement. Rig down and blow down circulating lines. Rig down cementing head. Lay down SUMMARY landing joint. Install pack-off and test to 5000psi. Rig up rig tongs. Change out bails and elevators. Adjust torque tube. Rig down stabbing board. Change pipe rams. Pull wear bushing. Pick up and install test joint. Rig up test equipment. Test all BOPE (annular, pipe and blind rams, HCR, floor and dart valves, check valves, inside and outside kill valves, manual choke, upper and lower kelly cock, CMVs 1-12) to 250psi Low/3000psi High for 10 minutes. Calibrate all gas alarms. Do accumulator performance test. Pull test joint, rig down test equipment and install wear bushing. Test casing to 3000psi for 30 minutes. Blow down mudlines and choke. Lay down drill collars and lift subs. Pick up and make up lower directional bottom hole assembly (bit, mudmotor, stabilizer, NMDC, MWD collar, NM cross-over, NMCSDP, cross-over). Orient MWD tools. Run in hole to last cross-over. Make up to upper bottom hole assembly (HWDP and jars) and run in hole. Rig up to pick up racked drill pipe. Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT ~~ ~,PQ~,H KBU 11-7 REPORT FOR John Nicholson / Rowland Lawson DATE Nov 26, 2005 DEPTH 5869 PRESENT OPERATION Running in hole TIME 24:00 YESTERDAY 5585 24 HOUR FOOTAGE 284 CASING INFORMATION 9 5/8" @ 5579' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5631 2.4 183.1 5350.59 SURVEY DATA 5758 1.2 166.3 5477.50 5821 0.7 082.0 5540.50 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 5 8.5 HCC MX-C1 6028339 3x18, 1x10cj 5585 5869 284 5.08 0-0-NO-A-E-1-NO-BHA Change bits DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 209.1 @ 5825 7.0 @ 5587 75.8 69.9 FT/HR SURFACE TORQUE 2827 @ 5849 0 @ S-iding 2464.1 2434.1 AMPS WEIGHT ON BIT 32 @ 5782 1 @ 5586 19.7 23.5 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1802 @ 5775 1329 @ 5807 1562.0 1581.6 PSI DRILLING MUD REPORT DEPTH 5869l5589TVD MW 9.5 VIS 56 PV 22 YP 26 FL 6.8 Gels 9!12114 CL- 30000 FC 2 SOL 7.0 SD 0.25 OIL 0/93 MBL 9.0 pH 9.6 Ca+ 0 CGI iWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 107 @ 5690 3 @ 5587 22.7 TRIP GAS CUTTING GAS @ @ WIPER GAS 52 CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 21404 @ 5690 640 @ 5587 4824.8 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Claystone, Tuffaceous Siltstone, Tuffaceous Shale, Sand/Sandstone. Minor Volcanic Ash, Tuffaceous Sandstone, Coal/Carbonaceous Shale. PRESENT .......„.TUFFACEOUS CLAYSTONE..........TUFFACEOUS SILTSTONE..........TUFFACEOUS SHALE.......... LITHOLOGY Blow down mud lines. Pick up, drift, make up and run in hole 80 joints of 5" drill pipe (to 3281'). Hold pre job safety meeting on cut and slip procedure. Slip 127' and cut 160' of drill line. Check crown-o-matic. Service blocks, Topdrive and carrier. Run in hole drom DAILY 3281' to 5428'. Wash and ream from 5428' to top of float collar at 5494'. Drill out float collar and shoe tract from 5494' to 5579'. Wash ACTIVITY and ream from 5579' to 5585'. Drill 20' of new hole from 5585' to 5605'. Circulate bottoms up. Perform Leak Off Test (to 15.30ppg SUMMARY EMW). Drill from 5605' to 5679'. Pull out of hole to 5429' on short 4 stand wiper trip. Run in hole to 5679'. Break circulation. (Record 52 units of wiper gas). Drill (rotating and sliding) from 5679' to 5869'. Circulate bottoms up. Circulate hole clean. Check for flow. Pull out of hole to 5554' (inside shoe). (Pulled tight at 5665' and 5622'). Pump dry job. Blow down Topdrive and mud lines. Pull out of hole. Break and lay down mill tooth steel bit. Service rig. Make up new PDC bit. Run in hole (to 1392'). --_ EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 2700 RW: 410 Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT ~ E~~CH KBU 11-7 REPORT FOR John Nicholson / Rowland Lawson DATE Nov 27, 2005 DEPTH 6940 PRESENT OPERATION Running back in hole during wiper trip TIME 24:00 YESTERDAY 5869 24 HOUR FOOTAGE 1071 CASING INFORMATION 9 5/8" @ 5579' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5948 0.6 110.7 5667.49 SURVEY DATA 6323 0.7 100.3 6042.47 6766 1.0 091.8 6485.42 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 6 8.5 HCC HCM605Z 7106613 5x15 5869 1071 10.15 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 272.3 @ 6438 22.4 @ 5925 121.7 64.7 FT/HR SURFACE TORQUE 3611 @ 6755 1345 @ 6499 2837.9 2830.7 AMPS WEIGHT ON BIT 12 @ 5932 3 @ 5870 8.5 9.0 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1912 @ 6565 1520 @ 5871 1778.8 1755.1 PSI DRILLING MUD REPORT DEPTH 6940 / 6660 TVD MW 9.9 VIS 55 PV 21 YP 23 FL 5.8 Gels 6/10112 CL- 30000 FC 2 SOL 9.0 SD 0.1 OIL 0/91 MBL 11.0 pH 9.3 Ca+ 20 CCI iWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 595 @ 6912 4 @ 5870 107.3 TRIP GAS 74 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm} SURVEY METHANE (C-1) 118797 @ 6912 902 @ 5870 21987.8 CONNECTION GAS HIGH ETHANE (C-2) 94 @ 6910 0 @ 13.3 AVG PROPANE (C-3) 37 @ 6912 0 @ 2.6 CURRENT BUTANE (C-4) 5 @ 6910 0 @ 0.1 CURRENT BACKGROUND/AVG 6 / 1 Z PENTANE (C-5) @ @ HYDROCARBON Note after 6245'there is 396' of sand section with gas over 100 units. Suspect poor to fair porosities due matrix clays. SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 6245-6940; nearly 400' Sand/SS/Tuffaceous SS = abnt loose 595u Max; 220u avg in Highest gas SS: mix of loose sd and tuf cly-vole section of gas disaggregted sand and consol ss supported by gas intvls; overall pre- ash supprtd consol ss; med It gry-med gry, vf- prominent sands ash-derived clay; vis Por is poor due to volume increase background is crse, mod srtd in fn to-med lo; ang-sbang; lith of matrix clay 37-40u aren-comp gywke; gen poor vis Por-rare (calc cmtd ss}good Por LITHOLOGY Major Sand/Sandstone, Tuffaceous Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Volcanic Ash, Coal/Carbonaceous Shale. PRESENT .........,SAND/SANDSTONE..........TUFFACEOUS CLAYSTONE..........TUFFACEOUS SILTSTONE.......... LITHOLOGY Run in hole with new PDC bit to 5806'. (Stop and fill pipe at 1900' and 5579'}. Wash and ream from 5806' to 5869'. Drill from 5869' AILY to 6940'. Circulate bottoms up. Circulate and continue to build mud weight up to 9.9ppg. Check for flow. Pump dry job. Pull out of CTIVITY hole to 5554' (inside shoe) on wiper trip. Backream from 6756'to 5741'. (Hole tight at 6756', 6466', 6420', 6414', 6305', 6224', SUMMARY 6183', 6090', 6060', 5950', 5946', 5870', 5741'). Service Topdrive and rig. Grease crown. Replace relay in Topdrive panel and repair broken wire. Blow down Topdrive and mud lines. Run back in hole (to 6124'}. Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT E~~I~H KBU 11-7 REPORT FOR John Nicholson / Rowland Lawson DATE Nov 28, 2005 DEPTH 7900 PRESENT OPERATION Pulling, washing, reaming and backreaming out of hole TIME 24:00 YESTERDAY 6940 24 HOUR FOOTAGE 960 CASING INFORMATION 9 5/8" @ 5579' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6892 1.0 094.1 6611.40 SURVEY DATA 7396 1.3 077.3 7115.31 7852 1.4 078.4 7571.22 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/BIG PULLED 6 8.5 HCC HCM605Z 7106613 5x15 5869 7900 2031 23.76 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 190.1 @ 7136 12.9 @ 7671 87.2 108.7 FT/HR SURFACE TORQUE 4055 @ 7132 2598 @ 7004 2998.9 3242.3 AMPS WEIGHT ON BIT 15 @ 7318 1 @ 7774 7.5 6.8 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 2106 @ 7572 1224 @ 7771 1943.7 1976.1 PSI DRILLING MUD REPORT DEPTH 7770 / 7489 TVD MW 10.3 VIS 59 PV 26 YP 27 FL 6.0 Gels 8/12/14 CL- 29000 FC 2 SOL 11.0 SD 0.25 OIL 0/89 MBL 12.0 pH 9.5 Ca+ 60 CCI 1WD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 370 @ 7193 1 @ 7663 75.8 TRIP GAS CUTTING GAS @ @ WIPER GAS 43 CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 73979 @ 7193 378 @ 7662 15020.5 CONNECTION GAS HIGH 425 ETHANE (C-2) 74 @ 7327 0 @ 13.2 AVG 123 PROPANE (C-3) 38 @ 7327 0 @ 2.8 CURRENT 5 BUTANE (C-4) 5 @ 7328 0 @ 0.1 CURRENT BACKGROUND/AVG 1 / 75 PENTANE (C-5) @ @ HYDROCARBON From 6940' to 7370' there is 277' of sand section with gas over 100 units. Porosities are poor to fair. SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 6940-7370 Sand/SS/Tuffaceous SS = abnt loose disaggtd sand, 370u High, 210u avg SS = v abnt loose sd, less abnt consol ss spprtd plus consol ss supported byash-derived matrix clay; for all intvls, 55u avg by tuff clay; med It-med gry; vfn-crse; mod srtd, Por gen poor due to volume of matrix clay background ang-abang, lithic arenite-comp grywke; spotty good Por LITHOLOGY Major Sand/Sandstone, Tuffaceous Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone, Coal/Carbonaceous Shale. Minor Tuffaceous Shale, Volcanic Ash. PRESENT ..........SANDSTONE/TUFFACEOUS SANDSTONE.......... LITHOLOGY Run back in hole on wiper trip (from 6124'} to 6879'. Wash and ream from 6879' to bottom at 6940'. Circulate bottoms up. Record 43 DAILY units of Wiper Gas. Pump Hi-Vis sweep around to clean hole. Drill from 6940' to 7129'. (Note progressive connection gas increase}. CTIVITY Repair hydraulic leaks in carrier lines. Drill from 7129' to 7900'. (Received 425 units of connection gas at 7192', begin raising mud SUMMARY weight from 9.9ppg to 10.3ppg, pump Hi-Vis sweep around at 7550' }. Circulate bottoms up. Continue circulating while waiting on confirmation of TD by geologist. Pump Hi-Vis sweep around. Total Depth at 7900' confirmed by geologist. Pult out of hole to 7200'. (Hole tight at 7613', 7396', 7320'). Wash, ream and backream from 7385' to 7281'. Marathon Oil Company ~ ~~®~~ Kenai Gas Field DAILY WELLSITE REPORT KBU 11-7 REPORT FOR John Nicholson / Rowland Lawson DATE Nov 29, 2005 DEPTH 7900 PRESENT OPERATION Running in hole with 5" drill pipe TIME 24:00 YESTERDAY 7900 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5!8" @ 5579' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 7900 (Projection) 1.4 078.4 7619.20 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 6 8.5 HCC HCM605Z 7106613 5x15 5869 7900 2031 23.76 1-1-WT-A-X-1-NO-TD Total Depth DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7900 / 7619 TVD MW 10.5 VIS 65 PV 27 YP 29 FL 5.8 Gels 8/11!14 CL- 28000 FC 2 SOL 12.0 SD 0.5 OIL 0/88 MBL 12.0 pH 9.8 Ca+ 80 CCI MWD SUMMARY 'NTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 652 @ Wiper gas 1 @ circ before pooh N/A TRIP GAS CUTTING GAS @ @ WIPER GAS 652 CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue pulling out of hole from 7200'. Wash and ream and backream from 7240' to 7223', 7024' to 6980', 6850' to 6845', 6840' to 6780', 6770' to 6740'. Pump Hi-Vis sweep at 6740' and circulate around. Continue pulling out of hole from 6740'. Wash and ream and backream from 6700' to 6650, 6580' to 6525', 6485' to 6469'. Pulled out slick from 6469' to shoe at 5579'. Service rig and clean floor. DAILY Run back in hole to bottom with no problems. Circulate bottoms up. Record 652 units of wiper gas. Pump around weighted Hi-Vis ACTIVITY sweep and circulate hole clean. Check for flow. Pump dry job. Pull out of hole (SLM} to bottom hole assembly. Lay down HWDP, SUMMARY cross-overs, CSDP, MWD NMDC, stabilizer, mudmotor and bit. Clean rig floor. Hold pre-job meeting on wireline rig up procedures. Rig up Precision Wireline Service. Make up Quad-Combo logging assembly. Install source. Run in hole with logging assembly. Log up from 7900' to 5579'. Pull out of hole with logging assembly. Lay down logging tools. Rig down PWS. Change out saver sub. Run in hole with open-ended 5" drill pipe. POCH PERSONNEL ON BOARD 2 DAILY COST ML: 1925 RW: 410 REPORT BY Craig Silva Marathon Oil Company ~ ~~~~~ Kenai Gas Field DAILY WELLSITE REPORT KBU 11-7 REPORT FOR John Nicholson /Dave Morris DATE Nov 30, 2005 DEPTH 7900 PRESENT OPERATION Pulling out of hole with open-ended 5" drill pipe TIME 24:00 YESTERDAY 7900 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5579' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON N0. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FTlHR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7900 / 7619 TVD MW 10.5 VIS 68 PV 23 YP 23 FL 5.8 Gels 5/9/12 CL- 28000 FC 1 SOL 12.0 SD 0.5 OIL 0188 MBL 12.0 pH 9.6 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS AS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 180 @ 7900 1 @ N/A TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Run in hole with open-ended 5"drill pipe to 7440'. Pick up, drift, make up and run in hole 15 joints of 5" drill pipe to 7900'. Circulate and condition mud. Check for flow. Pull out of hole to 7060'. Blow down mud lines. Change bails and rig up Precision Wireline Service. Hold pre job meeting on Wireline rig-up and logging procedures. Pick up and make up Wireline logging assembly with MFT tools. Run in hole to shoe. Move drill pipe. Run in hole with MFT tool to 7773'. Log up from 7773' to 7117' taking pressure points. Pull DAILY out of hole with logging assembly and lay down tools. Pull out of hole with drill pipe from 7060'to 6243'. Hold pre job safety meeting ACTIVITY on wirelining procedures with second crew. Rig down Wireline guide and change bails. Install pack-off. Rig up Wireline guide. Pick up SUMMARY MFT logging assembly and run in hole to 7035'. Log up from 7035'to 6327'taking pressure points. Pull out of hole with MFT assembly and lay down at the surface. Pull out of hole with 5" drill pipe to 5548'. Pick up MFT assembly and run in hole to 6262'. Log up from 6262' to 5656' taking pressure points. Pull out of hole with MFT assembly and break and lay down at the surface. Rig down and load off Precision WLS equipment. Check for flow. Pump dry job. Blow down Topdrive and mud line. Pull out of hole with open- ended 5"drill pipe. POCH PERSONNEL ON BOARD 2 DAILY COST ML: 1925 RW: 410 Consulting: 1100 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT ~ E~Q~H KBU 11-7 REPORT FOR John Nicholson / Rowland Lawson DATE Dec 01, 2005 DEPTH 7900 PRESENT OPERATION Pulling out of hole laying down 5" drill pipe TIME 24:00 YESTERDAY 7900 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5579' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON N0. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 5RR1 8.5 HCC MX-C1 6028339 3x20 7900 7900 n/a n/a n/a Clean out run only DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7900 / 7619 TVD MW 10.6 VIS 68 PV 26 YP 30 FL 5.1 Gels 7/11/14 CL- 29000 FC 1 SOL 12.5 SD 0.5 OIL 0/88 MBL 12.D pH 9.5 Ca+ 60 CCI MWD SUMMARY INTERVAL TO OOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 110 @ Trip gas at 7900 1 @ at pump shut down 2 after 1st circulation TRIP GAS 110 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) ~ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue to pull out of hole with open-ended 5"drill pipe. Service rig. Adjust brakes. Pickup and make up short bottom hole assembly (with rerun bit #5) for clean out run. Run in hole with clean out assembly. Fill pipe at 1400'. Blow down. Change out cotta- DAILY box shifter. Continue running in hole with 5" drill pipe to 5579' (near shoe). Fill pipe. Blow down. Continue running in hole from 5579' ACTIVITY to 7543'. Wash and ream from 7843' to 7900'. Circulate bottoms up. Record 110 units of trip gas. Pump around 50 bbl weighted Hi- SUMMARY Vis sweep. Circulate hole clean. Hold weekly safety meeting. Mix and pump around Hi-Vis sweep. Circulate hole clean. Check for flow. Pump dry job. Pull out of hole and laying down 5" drill pipe. (Cull out bad hard bands). Lay down 5"drill pipe out of derrick. Fill trip tank. Blow down. Pull out of hole laying down 5" drill pipe. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 1925 RW: 410 REPORT BY Craig Silva Marathon Oil Company ~~ ~~~~~ Kenai Gas Field DAILY WELLSITE REPORT KBU 11-7 REPORT FOR John Nicholson /Dave Morris DATE Dec 02, 2005 DEPTH 7900 PRESENT OPERATION Running 3 1/2" EXCAPE completion string TIME 24:00 YESTERDAY 7900 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5579' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENTAVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7900 / 7619 TVD MW 10.7 VIS 71 PV 26 YP 28 FL 5.2 Gels 7/11114 CL- 29000 FC 1 SOL 12.5 SD 0.5 OIL 0/88 MBL 12.0 pH 9.3 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS SAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 4 @ Circ at 5572 0 @ while pumping N?A TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG NIA PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Pull out of hole laying down 5" drill pipe, HWDP, jars, bit and bit sub. Pull wear bushing. Rig down rig tongs and spinners. Lay down and load off subs and handling tools. Clear and clean floor. Change bails and elevators. Rig up circulating line. Function safety valve and set in open position. Rig up Expro control lines and sheaves. Hang sleeve with control lines. Rig up Weatherford casing running DAILY equipment. Rig up fill-up lines and Pollard banding equipment. Stage modules on pipe rack. Hold pre job meeting on procedures and ACTIVITY safety for running completion string. Pick up and make up shoe tract. Function check float equipment. Pick up, make up and run in SUMMARY hole 3 1/2" production string with 18 EXCAPE completion modules as per program to 1876'. Rig up circulating line and head. Circulate through modules. Rig down circulating head. Blow down line. Continue running in hole with 3 1/2" EXCAPE completion string as per program to 5572' (shoe). Rig up circulating line and head. Circulate (at 90spm, 177gpm, 570psi). Rig down circulating head. Blow down line. Continue running in hole with 3 1/2" EXCAPE completion string from 5572' to 6552'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 1925 RW: 410 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT ~+PO~H KBU 11-7 REPORT FOR John Nicholson /Dave Morris DATE Dec 03, 2005 DEPTH 7900 PRESENT OPERATION Nippling down BOP stack TIME 24:00 YESTERDAY 7900 24 HOUR FOOTAGE 0 CASING INFORMATION 3 1/2" @ 7869' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7900 1 761 9 TVD MW 8.6 VIS 28 PV 1 YP 1 FL Gels CL- 30000 FC 6% KCL Brine SOL 1.0 SD OIL 0/99 MBL pH 7.0 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS ,AS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 43 @ Trip gas at 7865' 0 @ N/A TRIP GAS 43 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running 3 112" EXCAPE completion string as per program to 7865'. Rig up circulating line and head. Circulate (at 150spm, 1550psi). Circulate bottoms up. Record 43 units of trip gas. Circulate and condition mud. Hold pre-job meeting with Expro Wireline. Stop pumping. Rig up Expro equipment. Run in hole with gamma correlation log to determine positioning of EXCAPE modules. Log up and pull out of hole with wireline gamma tool assembly. Rig down Expro WLS. Completion string to be set at 7869'. Rig up cementing head and circulating lines. Head will have plug installed and awash-up tee. Circulate (at 150spm, 1550psi). Hold pre-job DAILY safety meeting on cementing procedures. Continue circulating and pump 464 bbls (10175 strokes) of mud treated with corrosion ACTIVITY inhibitor down casing. Line up BJ cementers. Pump 5 bbls of water to fill lines. Test cementing lines to 3000psi. Mix and pump 50 bbls SUMMARY of 10.5ppg MCS-4 spacer. Mix and pump 220.4 bbls of 15.8ppg cement slurry (1067 sacks Class G cement plus water and chemical accelerators). Wash lines. Drop plug and pump out with 5 bbls water. Displace cement with 63.4 bbls of 6% KCI brine. (Total displacement is 68.4 bbls, shoe joint is .348 bbls). Bump plug with 500psi over displacement. Bleed off. Check floats. Cement in place. Wait on cement. Blow down and rig down cementing lines. Flush and blow down all pump lines. Flush and blow down mud and choke lines. Rig down flow nipple, riser, drip pan, choke line, kill line, fill-up line and turnbuckles. Lay down mousehole. Rig down accumulator lines and panic line. Clean out trip tank. Begin cleaning pits. Rig up bridge cranes to BOP stack. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 1925 RW: 410 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT E~~~H KBU 11-7 REPORT FOR John Nicholson /Dave Morris DATE Dec 04, 2005 DEPTH 7900 PRESENT OPERATION Start of rig down operations for move to next well TIME 24:00 YESTERDAY 7900 24 HOUR FOOTAGE 0 CASING INFORMATION 3 1/2" @ 7869' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS AS 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) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTfON LITHOLOGY PRESENT LITHOLOGY Rig down standpipe manifold. Rig down #3 mud pump. Pick up BOP stack. Run control and electric lines out tubing head outlet. Set 95K on slips. Rough cut 3 1/2" casing above slips and lay down landing joints. Set stack on rack. Nipple down and remove BOP DAILY stack and spools. Make final clean cut on 3 1/2" casing. Run control lines through 31/2" packoff and terminate. Set and install ACTIVITY packoff. Install swage-lok fittings around control lines. Run in lock-down pins. Test packoff to 5000psi. Nipple up 13 5/8" by 3118" 5M SUMMARY tubing head adaptor to the 3 1/8" 5M tree, terminating control lines through the bottom flange. Set 2-way check valve in tubing hanger. Fill tree with methanol and test to 5000psi. Install BPV. Install EXCAPE control line warning sign. Completion to be done without a rig. Initiate rig-down operations for move to next well. EPOCH PERSONNEL ON BOARD 2 DAILY COST Rig down: 1700 REPORT BY Craig Silva