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Home My WebLink About214-044Nolan Vlahovich Hilcorp Alaska, LLC Geotech 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-4558 E-mail: nolan.vlahovich@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: Date: 10/02/2025 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20251002 Well API #PTD #Log Date Log Company Log Type AOGCC E-Set# BCU 11A 50133205210100 224123 9/23/2025 YELLOWJACKET PERF T40937 BCU 13 50133205250000 203138 8/18/2025 YELLOWJACKET GPT-PERF T40938 BCU 13 50133205250000 203138 8/26/2025 YELLOWJACKET GPT-PERF T49038 BCU 13 50133205250000 203138 8/21/2025 YELLOWJACKET GPT-PLUG T40938 BCU 23 50133206350000 214093 9/10/2025 YELLOWJACKET PERF T40939 BCU 24 50133206390000 214112 9/16/2025 YELLOWJACKET PLUG-PERF T40940 BRU 212-35T 50283200970000 198161 9/18/2025 AK E-LINE Perf T40941 BRU 224-34T 50283202050000 225044 7/29/2025 AK E-LINE CBP/Punch T40942 BRU 224-34T 50133207170000 225044 9/19/2025 AK E-LINE GPT/Perf T40942 END 1-05 50029216050000 186106 9/25/2025 YELLOWJACKET IPROF T40943 END 2-08 50029217710000 188004 8/11/2025 YELLOWJACKET PERF T40944 END 4-50 50029219400000 189044 9/8/2025 YELLOWJACKET P-PROF T40945 KBU 11-08Z 50133206290000 214044 9/15/2025 AK E-LINE Perf T40946 KU 33-08 50133207180000 224008 7/1/2025 YELLOWJACKET PERF T40947 KU 41-08 50133207170000 224005 8/28/2025 YELLOWJACKET PERF T40948 KU 41-08 50883201990100 224005 9/16/2025 AK E-LINE Perf T40948 MPU R-108 50029238210000 225062 8/14/2025 YELLOWJACKET SCBL T40949 MRU K-06RD2 50733200880200 216131 9/12/2025 AK E-LINE CBL T40950 MRU M-01 50733203880000 187046 9/20/2025 AK E-LINE Perf T40951 MRU M-25 50733203910000 187086 9/21/2025 AK E-LINE Perf T40952 NCIU A-21A 50883201990100 225075 8/21/2025 AK E-LINE CBL T40953 NFU 14-25 50231200350000 210111 9/3/2025 YELLOWJACKET PERF T40954 PBU PTM P1-08A 50029223840100 202199 9/13/2025 YELLOWJACKET SCBL T40955 PBU W-35A 50029217990200 225076 9/17/2025 YELLOWJACKET SCBL T40956 SRU 241-33 50133206630000 217047 9/17/2025 AK E-LINE Perf T40957 SRU 32A-33 50133101640100 191014 9/23/2025 AK E-LINE Perf T40958 SRU 32A-33 50133101640100 191014 9/21/2025 AK E-LINE Perf T40958 Please include current contact information if different from above. KBU 11-08Z 50133206290000 214044 9/15/2025 AK E-LINE Perf Gavin Gluyas Digitally signed by Gavin Gluyas Date: 2025.10.03 09:00:56 -08'00' Nolan Vlahovich Hilcorp Alaska, LLC Geotech 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-4558 E-mail: nolan.vlahovich@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: Date: 09/19/2025 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20250919 Well API #PTD #Log Date Log Company Log Type AOGCC E-Set# BRU 212-35T 50283200970000 198161 8/10/2025 AK E-LINE PPROF T40899 BRU 223-34T 50283202060000 225059 8/17/2025 AK E-LINE CBL T40900 BRU 234-27 50283202070000 225065 9/12/2025 AK E-LINE CBL T40901 BRU 242-04 50283201640000 212041 6/9/2025 AK E-LINE Perf T40902 KBU 11-08Z 50133206290000 214044 9/8/2025 AK E-LINE Perf T40903 MPU H-03 50029220630000 190088 9/9/2025 AK E-LINE SetPacker T40904 MPU H-11 50029228020000 197163 2/9/2025 AK E-LINE Caliper T40905 MPU M-62 50029237440000 223006 8/31/2025 AK E-LINE LDL T40906 NCIU A-06 50883200260000 169050 8/25/2025 AK E-LINE TubingCut T40907 NCIU A-21A 50883201990100 225075 8/26/2025 AK E-LINE Perf T40908 ODSK-33 50703205620000 207183 9/10/2025 READ Caliper Survey T40909 ODSN-01a 50703206480100 216008 9/8/2025 READ Caliper Survey T40910 ODSN-06 50703207150000 215098 9/9/2025 READ Jewelry Log T40911 PBU C-34C 50029217850300 225068 8/25/2025 BAKER MRPM T40912 PBU Q-06A 50029203460100 198090 8/21/2025 BAKER SPN T40913 TBU M-25 50733203910000 187086 8/31/2025 AK E-LINE Drift T40914 Please include current contact information if different from above. KBU 11-08Z 50133206290000 214044 9/8/2025 AK E-LINE Perf Gavin Gluyas Digitally signed by Gavin Gluyas Date: 2025.09.22 13:22:50 -08'00' 1. Type of Request:Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: N2 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? Yes No 9. Property Designation (Lease Number):10. Field: 11. Total Depth MD (ft):Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: Junk (MD): 9,900'N/A Casing Collapse Structural Conductor Surface 2,480 psi Intermediate 4,790 psi Production 10,500 psi 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: 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 Conditions of Approval: Post Initial Injection MIT Req'd? Yes No APPROVED BY Approved by: COMMISSIONER THE AOGCC Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng stefan.reed@hilcorp.com 206-518-0400 Noel Nocas, Operations Manager 907-564-5278 Suspension Expiration Date: Will perfs require a spacing exception due to property boundaries? Current Pools: MPSP (psi):Plugs (MD): 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: Tubing Size: PRESENT WELL CONDITION SUMMARY Stefan Reed, Operations Engineer AOGCC USE ONLY Tubing Grade:Tubing MD (ft):Perforation Depth TVD (ft): Subsequent Form Required: STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEE A028142 214-044 50-133-20629-00-00 Hilcorp Alaska, LLC Proposed Pools: N/A TVD Burst N/A 9,910 psi 1,544' Size 130' 7-5/8"5,932' 1,603' MD See Attached Schematic 6,890 psi 5,210 psi 130' 5,567' 130' 1,603' September 4, 2025 N/A 9,898' Perforation Depth MD (ft): 5,932' 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Kenai Beluga Unit (KBU) 11-08ZCO 510C Same 9,507'5" ~3,391psi 9,898' See Schematic Length 5" Swell Packer and N/A 5,434' MD / 5,104' TVD and N/A 9,509'9,197'8,807' Kenai Beluga-Up Tyonek Gas 16" 10-3/4" See Attached Schematic m n P s 66 t 2 N Form 10-403 Revised 06/2023 Approved application valid for 12 months from date of approval.Submit PDF to aogcc.permitting@alaska.gov For: Noel Nocas Digitally signed by Chad Helgeson (1517) DN: cn=Chad Helgeson (1517) Date: 2025.08.25 10:34:42 - 08'00' Chad Helgeson (1517) 325-511 By Grace Christianson at 12:23 pm, Aug 25, 2025 A.Dewhurst 27AUG25 DSR-8/26/25BJM 9/2/25 10-404 *&: Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2025.09.03 08:29:27 -08'00'09/03/25 RBDMS JSB 090425 Well Prognosis Well: KBU 11-08Z Date: August 2025 Well Name: KBU 11-08Z API Number: 50-133-20629-00 Current Status: Producing Gas Well Permit to Drill Number: 214-044 Regulatory Contact: Donna Ambruz (907) 777-8305 (O) First Call Engineer: Stefan Reed (907) 777-8433 (O) (206) 518-0400 (C) Second Call Engineer: Chad Helgeson (907) 777-8405 (O) (907) 229-4824 (C) Maximum Expected BHP: ~ 4,267 psi @ 8,762’ TVD (Based on RFT data in 43-07Y) Max. Predicted Surface Pressure: ~ 3,391 psi (0.10 psi/ft gas gradient) Applicable Frac Gradient: 0.70 psi/ft using 13.5 ppg EMW FIT at the intermediate casing 5/4/14 Shallowest Potential Perf TVD: ૜,૜ૢ૚࢖࢙࢏ ૙.ૠ૙࢖࢙࢏ ࢌ࢚ ି૙.૚࢖࢙࢏ ࢌ࢚ =૞,૟૞૛Ԣࢀࢂࡰ Top of Pools per CO 510C: Beluga/Upper Tyonek Gas Pool – 5,001’ MD/ 4,703’ TVD Brief Well Summary KBU 11-08Z is a grassroots well that was drilled and completed in the Tyonek D sands in 2014 by Hilcorp. It was perf’d and produced from the D3B only until early 2020 when the rest of the Tyonek D sands were added. In 2021 & 2022 the lower Beluga zones were added for increased rate. In 2023 the Tyonek Gas Pool 1 was isolated and perforations were added to the D1 sand but did not add any rate. The well is currently producing at ~780 mscfd from the Beluga/Upper Tyonek Gas Pool. The purpose of this work/sundry is to add perforations in the 84-6 sand for increased rate. Notes Regarding Wellbore Condition x Monobore 5” completion x SL tagged @ 9,175’ SLM w/ 20’x3-3/8” dummy guns 12-Aug-2025. E-Line Procedure 1. MIRU E-line, PT lubricator to 250 psi low and 4,000 psi high 2. Shut in well. 3. RIH and perforate the proposed interval in the table below: a. Make first gun run w/ 5’ loaded gun. Discuss with OE/RE for interval to perforate first with this gun run. Proposed Perforated Intervals Pool Sand Top, MD ft Bottom, MD ft Top, TVD ft Bottom, TVD ft Total ftg, MD Beluga/Upper Tyonek Ty 84-6 ±8,829’ ±8,851’ ±8,439’ ±8,461’ ±22’ Well Prognosis Well: KBU 11-08Z Date: August 2025 4. Make correlation pass and send log in to Operations Engineer, Reservoir Engineer and the Geologist. a. Record initial and 5/10/15 minute tubing pressures after firing, b. Pending well production, all of perf interval may not be completed or interval may be reperforated at RE/GEO discretion based on production results. c. If any zone produces sand and/or water or needs isolated, RIH and set plug above the perforations or patch across perforations. d. If necessary, use nitrogen to pressure up well during perforating or to depress water prior to setting a plug above perforations e. Above perfs are in the Beluga/Upper Tyonek Gas Pool governed by CO 510C 5. RDMO e-line. 6. Turn well over to production. Eline Procedure (Contingency) If production rates require a downhole choke: 1. MIRU E-line. PT PCE 2. Set Northern Solutions Polar Choke above 84-6 sand. a. Choke size and depth pending post perforation results. 3. RDMO, turn well over to production. Attachments: 1. Current Wellbore Schematic 2. Proposed Wellbore Schematic 3. Standard Nitrogen Procedure _____________________________________________________________________________________ Updated by DMA 03-12-24 SCHEMATIC Kenai Gas Field Well: KBU 11-08Z Last Completed: 7/18/14 PTD: 214-044 JEWELRY DETAIL No Depth Item 1 5,434’5” Swell Packer 2 7,151’RA Marker with 5’ Pup 3 7,482’RA Marker with 5’ Pup 4 8,056’RA Marker with 5’ Pup 5 9,229’CIBP w/ 32ft of cement – TOC @ 9,197’ 8/25/23 6 9,626’CIBP 7 9,742’CIBP 8 9,885’CIBP OPEN HOLE / CEMENT DETAIL 10-3/4”"164BBL’s of cement in 13.5” Hole. Returns to Surface 7-5/8"220BBL’s of cement in 9-7/8” Hole. TOC Est. 900’ 5”175BBL’s of cement in 6-3/4” Hole. SCMT TOC 3,050’ PERFORATION DETAIL Sands Top (MD)Btm (MD)Top (TVD)Btm (TVD)SPF Ft Date Status LB1A 6,524’6,532’6,141’6,149’6 8 6/22/22 Open LB1B 6,554’6,574’6,171’6,191’6 20 6/22/22 Open LB1F 6,762’6,779’6,379’6,396’6 17 6/22/22 Open LB2D 6,903’6,937’6,519’6,553’6 34 6/22/22 Open LB3B 7,081’7,089’6,697’6,705’6 8 6/22/22 Open LB4A 7,226’7,236’6,842’6,852’6 10 6/22/22 Open LB4B 7,270’7,284’6,886’6,900’6 14 6/21/22 Open LB4C 7,308’7,328’6,924’6,944’6 20 6/21/22 Open LB5A 7,426’7,436’7,041’7,051’6 10 6/21/22 Open LB5B 7,472’7,492’7,089’7,107’6 20 6/21/22 Open D1 9,100’9,190’8,710’8,800’6 90 8/25 &26/23 Open D2_Upper 9,234’9,249’8,844’8,858’6 15’1/22/20 Isolated D2_Lower 9,262’9,289’8,871’8,898’6 27’1/22/20 Isolated D-3A 9,538’9,550’9,147’±9,159’6 12’1/22/20 Isolated D-3B 9,589'9,596'9,198’9,205’6 7 07/18/14 Isolated 9,589'9,601'9,198’9,210’6 12 07/18/14 Isolated 9,601'9,621'9,210’9,230’6 6 07/18/14 Isolated 9,607'9,617'9,216’9,226’6 10 07/11/14 Isolated D-3C 9,636' 9,648' 9,245’ 9,257’ 6 12 06/28/14 Isolated (7/12/2014) D-4B 9,765'9,774'9,374’9,383’6 9 06/25/14 Isolated (6/28/2014) 9,767'9,772'9,376’9,381’1 5 06/25/14 D-5 9,801'9,826'9,410’9,435’6 25 06/21/14 9,840'9,851'9,449’9,460’6 11 06/14/14 D-6 9,861'9,870'9,470’9,479’6 11 06/14/14 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 16"Conductor N/A Surf 130' 10-3/4'Surface 45.5 /L-80 / BTC 9.950 Surf 1,603' 7-5/8"Intermediate 29.7 / L-80 / BTC Mod 6.875 Surf 5,932' 5"Production 18 / L-80 / DWC/C-HT 4.276 Surf 9,898’ _____________________________________________________________________________________ Updated by SAR 08-20-25 Proposed Kenai Gas Field Well: KBU 11-08Z Last Completed: 7/18/14 PTD: 214-044 JEWELRY DETAIL No Depth Item 1 5,434’5” Swell Packer 2 7,151’RA Marker with 5’ Pup 3 7,482’RA Marker with 5’ Pup 4 8,056’RA Marker with 5’ Pup 5 9,229’CIBP w/ 32ft of cement – TOC @ 9,197’ 8/25/23 6 9,626’CIBP 7 9,742’CIBP 8 9,885’CIBP OPEN HOLE / CEMENT DETAIL 10-3/4”"164BBL’s of cement in 13.5” Hole. Returns to Surface 7-5/8"220BBL’s of cement in 9-7/8” Hole. TOC Est. 900’ 5”175BBL’s of cement in 6-3/4” Hole. SCMT TOC 3,050’ PERFORATION DETAIL Sands Top (MD)Btm (MD)Top (TVD)Btm (TVD)SPF Ft Date Status LB1A 6,524’6,532’6,141’6,149’6 8 6/22/22 Open LB1B 6,554’6,574’6,171’6,191’6 20 6/22/22 Open LB1F 6,762’6,779’6,379’6,396’6 17 6/22/22 Open LB2D 6,903’6,937’6,519’6,553’6 34 6/22/22 Open LB3B 7,081’7,089’6,697’6,705’6 8 6/22/22 Open LB4A 7,226’7,236’6,842’6,852’6 10 6/22/22 Open LB4B 7,270’7,284’6,886’6,900’6 14 6/21/22 Open LB4C 7,308’7,328’6,924’6,944’6 20 6/21/22 Open LB5A 7,426’7,436’7,041’7,051’6 10 6/21/22 Open LB5B 7,472’7,492’7,089’7,107’6 20 6/21/22 Open 84-6 ±8,829’±8,851’±8,439’±8,461’6 ±22 Proposed Proposed D1 9,100’9,190’8,710’8,800’6 90 8/25 &26/23 Open D2_Upper 9,234’9,249’8,844’8,858’6 15’1/22/20 Isolated D2_Lower 9,262’9,289’8,871’8,898’6 27’1/22/20 Isolated D-3A 9,538’9,550’9,147’±9,159’6 12’1/22/20 Isolated D-3B 9,589'9,596'9,198’9,205’6 7 07/18/14 Isolated 9,589'9,601'9,198’9,210’6 12 07/18/14 Isolated 9,601'9,621'9,210’9,230’6 6 07/18/14 Isolated 9,607'9,617'9,216’9,226’6 10 07/11/14 Isolated D-3C 9,636' 9,648' 9,245’ 9,257’ 6 12 06/28/14 Isolated (7/12/2014) D-4B 9,765'9,774'9,374’9,383’6 9 06/25/14 Isolated (6/28/2014) 9,767'9,772'9,376’9,381’1 5 06/25/14 D-5 9,801'9,826'9,410’9,435’6 25 06/21/14 9,840'9,851'9,449’9,460’6 11 06/14/14 D-6 9,861'9,870'9,470’9,479’6 11 06/14/14 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 16"Conductor N/A Surf 130' 10-3/4'Surface 45.5 /L-80 / BTC 9.950 Surf 1,603' 7-5/8"Intermediate 29.7 / L-80 / BTC Mod 6.875 Surf 5,932' 5"Production 18 / L-80 / DWC/C-HT 4.276 Surf 9,898’ STANDARD WELL PROCEDURE NITROGEN OPERATIONS 12/08/2015 FINAL v1 Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. 1. Operations Susp Well Insp Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Install Whipstock Perforate Other Stimulate Alter Casing Change Approved Program Mod Artificial Lift Perforate New Pool Repair Well Coiled Tubing Ops Other: N2 Development Exploratory 3. Address:Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 9,900 feet See Schematic feet true vertical 9,508 feet N/A feet Effective Depth measured 9,197 feet 5,434 feet true vertical 8,807 feet 5,104 feet Perforation depth Measured depth See Schematic feet True Vertical depth See Schematic feet Tubing (size, grade, measured and true vertical depth)N/A N/A N/A N/A Packers and SSSV (type, measured and true vertical depth)5" Swell Pkr; N/A 5,434' MD 5,104' TVD N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13a. Prior to well operation: Subsequent to operation: 13b. Pools active after work: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Authorized Name and Digital Signature with Date:Contact Name: Contact Email: Authorized Title:Contact Phone: 4,790psi 10,500psi 5,210psi 6,890psi 9,910psi 1,603'1,544' Burst Collapse 2,480psi Production Liner 5,932' 9,899' Casing Structural 5,567' 9,508' 5,932' 9,899' 130'Conductor Surface Intermediate 16" 10-3/4" 130' 1,603' measured TVD 7-5/8" 5" STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 214-044 50-133-20629-00-00 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Hilcorp Alaska, LLC N/A 5. Permit to Drill Number:2. Operator Name 4. Well Class Before Work: FEE A028142 Kenai / Beluga-Up Tyonek Gas, Tyonek Gas Kenai Beluga Unit (KBU) 11-08Z Plugs Junk measured Length measured true vertical Packer Representative Daily Average Production or Injection Data Casing Pressure Tubing Pressure 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf MD 0 Size 130' 0 01008 0 590 60 Chad Helgeson, Operations Engineer 323-453 Sr Pet Eng:Sr Pet Geo:Sr Res Eng: WINJ WAG 1095 Water-BblOil-Bbl 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Noel Nocas, Operations Manager 907-564-5278 N/A chelgeson@hilcorp.com 907-777-8405 p k ft t Fra O s 6. A G L PG , Form 10-404 Revised 10/2022 Due Within 30 days of Operations Submit in PDF format to aogcc.permitting@alaska.gov By Samantha Coldiron at 11:12 am, Feb 09, 2024 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2024.02.09 10:47:47 - 09'00' Noel Nocas (4361) RBDMS JSB 022724 DSR-2/13/24 Rig Start Date End Date 8/24/23 1/24/24 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KBU 11-08Z 50-133-20629-00-00 214-044 08/25/2023- Friday AK Eline arrive, sign it at office, conduct PJSM, complete permit, discuss heavy lifts (Controlling large guns) Start equipment, check tools, mix cement. Load 10 gal of cement in 3.5" x 30ft cement dump bailer with glass disc. RIH and tag at 9209', PU and dump 10 gal of cement, placing TOC @ 9,197'. POOH and bailer was empty. Pressure up the well with gas from KTU 43-06XRD2 to 1100 psi. PU 20ft 3-3/8" HC Perf gun loaded with 22.7 gr RDX Connex charges loaded 6 spf. RIH to perforate Tyonek D1 Sand. Tied into short joint at 8056 to confirm collars. Sat down at 9190.5, decision made to shoot 9170-9190 (instead of proposed 9197-9177). Fired guns from 9170-9190'. 0 min = 1000 psi 5 min = 990 psi 15 min = 990 psi All but one shot didn't fire. Small amount of black sand in bull plug. PU 20ft 3-3/8" Perf gun loaded with 22.7 gr RDX Connex Charges loaded 6 spf. RIH and correlate CCL with short joint at 8056'. Perforate Tyonek D1 sand 9150-9170. 0 min = 817 psi 5 min = 820 psi 10 min = 822 psi 15 min = 824 psi Small amount of black sand in bull plug. PU 20ft 3-3/8" Perf gun loaded with 22.7 gr RDX Connex Charges loaded 6 spf. RIH and correlate CCL with short joint at 8056'. Perforate Tyonek D1 sand 9137-9157. NOTE: Due to 7' shallow shot on Gun ONE, there is a 7' overlap. POOH 0 min = 842 psi 5 min = 845 psi 10 min = 846 psi 15 min = 848 psi. OOH w/ Gun THREE. Secure well & equipment. SDFN. Plan forward: Shoot 1) remaining 20' gun and a 17' gun. AK Eline arrived, completed PTW, TGSM, RU on well. PT well with MeOH 250L/4000H, passed test. Dumped test methanol down well. PU GPT, RIH to 9300', log up to 6515ft. Found fluid level at 6717'. BHP @ 9290ft = 1940 psi. POOH and LD GPT. Discussed plan forward with RE and OE. Decision was made to set plug with fluid in well. Stopped the job to reposition the truck for additional runs. PU 5" CIBP, 3.71" OD Big Boy. RIH to 9304', pull correlation pass, verified on depth with OE, RIH to pull into position @ 9217.2' (11.6' CCL to center of plug) making center of plug set at 9,229'. Lost weight on tool string. PU 10ft, RIH and tag plug at 9,229'. POOH. Eline LD plug setting tools, PU 20ft of 3.5" cement dump bailer. Load bailer with 10 gal of 15.8 ppg cement. RIH, tag plug at 9,229', dump 10 gal of cement. (TOC @ 9219'). POOH. Cement bailer empty at surface. Secure well, shut down for the the night. 08/24/2023 - Thursday Rig Start Date End Date 8/24/23 1/24/24 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KBU 11-08Z 50-133-20629-00-00 214-044 01/24/2024 - Wednesday Travel to KGF office. AK Eline arrive, sign it at office, conduct PJSM, complete permit, travel to location. Rig back on well. Prep Gun FOUR. RIH w/ Gun FOUR 20ft 3-3/8" Perf gun loaded with 22.7 gr RDX Connex Charges loaded 6 spf. RIH and correlate CCL with short joint at 8056'. CCL to TS = 4.3' / CCL to be at 9112.7' to place TS at 9117'. Perforate Tyonek D1 sand 9117-9137. POOH. 0 min = 896 psi 5 min = 897 psi 10 min = 898 psi 15 min = 901 psi. OOH. All shots fired. Lay down Gun FOUR. P/U Gun FIVE. RIH w/ Gun FIVE 17ft 3-3/8" Perf gun loaded with 22.7 gr RDX Connex Charges loaded 6 spf. RIH and correlate CCL with short joint at 8056'. CCL to TS = 7' / CCL to be at 9093' to place TS at 9100'. Perforate Tyonek D1 sand 9100-9117. POOH. 0 min = 912 psi 5 min = 913 psi 10 min = 914 psi 15 min = 915 psi. OOH. Lay down Gun FIVE. Lead Op dropped soap sticks and brought well on line. RDMO AK E-Line. Reservoir team completed evaluation of perf adds and determined a plug over the D1 sands was not necessary. The D1 sands did not produce any sand or increase water production from well. Project ready to close out. 08/26/2023 - Saturday _____________________________________________________________________________________ Updated by DMA 02-08-24 SCHEMATIC Kenai Gas Field Well: KBU 11-08Z Last Completed: 7/18/14 PTD: 214-044 JEWELRY DETAIL No Depth Item 1 5,434’5” Swell Packer 2 7,151’RA Marker with 5’ Pup 3 7,482’RA Marker with 5’ Pup 4 8,056’RA Marker with 5’ Pup 5 9,229’CIBP w/ 32ft of cement – TOC @ 9,197’ 8/25/23 6 9,626’CIBP 7 9,742’CIBP 8 9,885’CIBP OPEN HOLE / CEMENT DETAIL 10-3/4”"164BBL’s of cement in 13.5” Hole. Returns to Surface 7-5/8"220BBL’s of cement in 9-7/8” Hole. TOC Est. 900’ 5”175BBL’s of cement in 6-3/4” Hole. SCMT TOC 3,050’ PERFORATION DETAIL Sands Top (MD)Btm (MD)Top (TVD)Btm (TVD)SPF Ft Date Status LB1A 6,524’6,532’6,141’6,149’6 8 6/22/21 Open LB1B 6,554’6,574’6,171’6,191’6 20 6/22/21 Open LB1F 6,762’6,779’6,379’6,396’6 17 6/22/21 Open LB2D 6,903’6,937’6,519’6,553’6 34 6/22/21 Open LB3B 7,081’7,089’6,697’6,705’6 8 6/22/21 Open LB4A 7,226’7,236’6,842’6,852’6 10 6/22/21 Open LB4B 7,270’7,284’6,886’6,900’6 14 6/21/22 Open LB4C 7,308’7,328’6,924’6,944’6 20 6/21/22 Open LB5A 7,426’7,436’7,041’7,051’6 10 6/21/22 Open LB5B 7,472’7,492’7,089’7,107’6 20 6/21/22 Open D1 9,100’9,190’8,710’8,800’6 90 8/25 &26/23 Open D2_Upper 9,234’9,249’8,844’8,858’6 15’1/22/20 Isolated D2_Lower 9,262’9,289’8,871’8,898’6 27’1/22/20 Isolated D-3A 9,538’9,550’9,147’±9,159’6 12’1/22/20 Isolated D-3B 9,589'9,596'9,198’9,205’6 7 07/18/14 Isolated 9,589'9,601'9,198’9,210’6 12 07/18/14 Isolated 9,601'9,621'9,210’9,230’6 6 07/18/14 Isolated 9,607'9,617'9,216’9,226’6 10 07/11/14 Isolated D-3C 9,636' 9,648' 9,245’ 9,257’ 6 12 06/28/14 Isolated (7/12/2014) D-4B 9,765'9,774'9,374’9,383’6 9 06/25/14 Isolated (6/28/2014) 9,767'9,772'9,376’9,381’1 5 06/25/14 D-5 9,801'9,826'9,410’9,435’6 25 06/21/14 9,840'9,851'9,449’9,460’6 11 06/14/14 D-6 9,861'9,870'9,470’9,479’6 11 06/14/14 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 16"Conductor N/A Surf 130' 10-3/4'Surface 45.5 /L-80 / BTC 9.950 Surf 1,603' 7-5/8"Intermediate 29.7 / L-80 / BTC Mod 6.875 Surf 5,932' 5"Production 18 / L-80 / DWC/C-HT 4.276 Surf 9,898’ Nolan Vlahovich Hilcorp Alaska, LLC Geotech 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-4558 E-mail: nolan.vlahovich@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: Date: 1/12/2024 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20240112 Well API #PTD #Log Date Log Company Log Type AOGCC Eset# BRU 221-35 50283201930000 223077 11/4/2023 AK E-LINE CBL END 1-27 50029216930000 187009 11/16/2023 YELLOWJACKET PERF KALOTSA 4 50133206650000 217063 9/28/2023 YELLOWJACKET PERF KALOTSA 8 50133207050000 222003 11/29/2023 YELLOWJACKET PERF KBU 13-8 50133203040000 177029 11/5/2023 YELLOWJACKET PERF KBU 22-06Y 50133206500000 215044 11/9/2023 YELLOWJACKET GPT KBU 22-06Y 50133206500000 215044 11/17/2023 YELLOWJACKET PLUG-PERF KBU 11-08Z 50133206290000 214044 8/24/2023 AK E-LINE GPT/CIBP/PERF KBU 22-06Y 50133206500000 215044 10/9/2023 AK E-LINE CBL KBU 23-05 50133206300000 214061 10/10/2023 AK E-LINE PLT KBU 43-07Y 50133206250000 214019 10/6/2023 AK E-LINE CIBP/PERF MPU I-01 50029220650000 190090 11/18/2023 YELLOWJACKET PERF PAXTON 12 50133207100000 223014 11/20/2023 YELLOWJACKET PERF PAXTON 7 50133206430000 214130 9/18/2023 YELLOWJACKET CBL PAXTON 7 50133206430000 214130 10/7/2023 YELLOWJACKET PERF SRU 224-10 50133101380100 222124 12/27/2023 YELLOWJACKET GPT-PLUG-PERF SRU 224-10 50133101380100 222124 11/4/2023 YELLOWJACKET PERF SRU 231-33 50133101630100 223008 11/8/2023 YELLOWJACKET PERF-PLUG-GPT SRU 231-33 50133101630100 223008 11/3/2023 YELLOWJACKET PERF SRU 231-33 50133101630100 223008 10/17/2023 YELLOWJACKET PLUG-PERF-GPT SRU 232-15 50133207140000 223091 12/6/2023 YELLOWJACKET GPT-PERF SRU 232-15 50133207140000 223091 12/2/2023 YELLOWJACKET SCBL Please include current contact information if different from above. T38273 T38275 T38277 T38278 T38279 T38280 T38280 T38281 T38282 T38283 T38284 T38285 T38286 T38287 T38287 T38288 T38288 T38289 T38289 T38289 T38290 T38290 1/18/2024 KBU 11-08Z 50133206290000 214044 8/24/2023 AK E-LINE GPT/CIBP/PERF Kayla Junke Digitally signed by Kayla Junke Date: 2024.01.18 11:52:00 -09'00' 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:McLellan, Bryan J (OGC) To:Chad Helgeson Cc:Donna Ambruz; Roby, David S (OGC) Subject:RE: KBU 11-08Z (PTD# 214-044) Sundry # 214-044 additional perf depths Date:Wednesday, September 20, 2023 9:40:00 AM Chad, Hilcorp has approval to perforate the coals described in your email below under the open sundry 323-458. Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Chad Helgeson <chelgeson@hilcorp.com> Sent: Wednesday, August 30, 2023 10:40 AM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Cc: Donna Ambruz <dambruz@hilcorp.com>; Roby, David S (OGC) <dave.roby@alaska.gov> Subject: KBU 11-08Z (PTD# 214-044) Sundry # 214-044 additional perf depths Bryan, Our geo team has found a coal that we would like to perforate and test in the Kenai Gas Field well # KBU 11-08Z (PTD# 214-044), current open sundry # 214-044. We set the plug on this well last week isolating the 2 pools, so we are only open in the one pool. We also added the proposed perfs to the D1 and we would like to add 19ft of coals that are above the D1 sand package that was perforated (9067-9086 MD). The perf adds from last week have added ~ 50mcf, so not a lot of additional rate and little risk of lost production. Attached is an email dialog our reservoir engineer had with David Roby inquiring about any special regulations required around perforating the coals, where Dave saying there is any undue burden, we are requesting approval to add this coal to this sundry. Also attached is the updated schematic showing these perfs. Let me know if you have any questions or need additional information on this request. Thank you. 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 herebynotified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, pleaseimmediately 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 responsibilityis accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. From:Reid Edwards To:Chad Helgeson; Daniel Yancey Subject:FW: [EXTERNAL] Coal test Date:Monday, August 7, 2023 3:06:58 PM Does not appear that any existing regulations would apply in our proposed project for KBU 22-06Y. Giddy up From: Roby, David S (OGC) <dave.roby@alaska.gov> Sent: Monday, August 7, 2023 2:58 PM To: Reid Edwards <reedwards@hilcorp.com> Subject: [EXTERNAL] Coal test Hi Reid, I’m checking with others in my office to make sure, but I think you’ll be able to test the coal seam without any undue burden. Our statutes say: AS 31.05.030(j) For exploration and development operations involving nonconventional gas, the commission (1) may not (A) issue a permit to drill under this chapter if the well would be used to produce gas from an aquifer that serves as a source of water for human consumption or agricultural purposes unless the commission determines that the well will not adversely affect the aquifer as a source of water for human consumption or agricultural purposes; or (B) allow injection of produced water except at depths below known sources of water for human consumption or agricultural purposes; (2) shall (A) regulate hydraulic fracturing in nonconventional gas wells to ensure protection of drinking water quality; (B) regulate the disposal of wastes produced from the operations unless the disposal is otherwise subject to regulation by the Department of Environmental Conservation or the United States Environmental Protection Agency; (C) as a condition of approval of a permit to drill a well for regular production of coal bed methane, require the operator to design and implement a water well testing program to provide baseline data on water quality and quantity; the commission shall make the results of the water well testing program available to the public. And nonconventional gas is defined in AS 38.05.965(15) as: (15) “nonconventional gas” means coal bed methane, gas contained in shales, or gas hydrates; I believe you said you wanted to perf a coal in an existing well and not drill a well specifically for testing the coal, if that’s the case I think almost none of the conditions laid out above would apply to you. For example: (j)(1)(A) wouldn’t apply because you’re not drilling a new well, and even if you were it’s unlikely there’s any USDWs anywhere near the coal you want to test. (j)(1)(B) wouldn’t apply because any produced water disposal would be done through an existing disposal well. (j)(2)(A) could apply if you frac, but protection of drinking water is required when fracking any well and is not specific to CBM wells. (j)(2)(B) wouldn’t apply because again waste would be disposed of in existing regulated disposal wells. (j)(2)(c) Wouldn’t apply since you’re not drilling a new well. Now, if the test proves successful and eventually you decide to drill some new wells/sidetrack existing wells to put the coal into regular production then more requirements could come in to play on those wells. If I hear anything different from others in my office I’ll let you know. Regards, Dave Roby Senior Reservoir Engineer Alaska Oil and Gas Conservation Commission (907)793-1232 _____________________________________________________________________________________ Updated by CAH 08-30-23 PROPOSED Kenai Gas Field Well: KBU 11-08Z Last Completed: 7/18/14 PTD: 214-044 JEWELRY DETAIL No Depth Item 1 5,434’ 5” Swell Packer 2 7,151’ RA Marker with 5’ Pup 3 7,482’ RA Marker with 5’ Pup 4 8,056’ RA Marker with 5’ Pup 5 ±9,229’ CIBP w/ 25ft of cement 6 9,626’ CIBP 7 9,742’ CIBP 8 9,885’ CIBP OPEN HOLE / CEMENT DETAIL 10-3/4”" 164BBL’s of cement in 13.5” Hole. Returns to Surface 7-5/8" 220BBL’s of cement in 9-7/8” Hole. TOC Est. 900’ 5” 175BBL’s of cement in 6-3/4” Hole. SCMT TOC 3,050’ PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) SPF Ft Date Status LB1A 6,524’ 6,532’ 6,141’ 6,149’ 6 8 6/22/21 Open LB1B 6,554’ 6,574’ 6,171’ 6,191’ 6 20 6/22/21 Open LB1F 6,762’ 6,779’ 6,379’ 6,396’ 6 17 6/22/21 Open LB2D 6,903’ 6,937’ 6,519’ 6,553’ 6 34 6/22/21 Open LB3B 7,081’ 7,089’ 6,697’ 6,705’ 6 8 6/22/21 Open LB4A 7,226’ 7,236’ 6,842’ 6,852’ 6 10 6/22/21 Open LB4B 7,270’ 7,284’ 6,886’ 6,900’ 6 14 6/21/22 Open LB4C 7,308’ 7,328’ 6,924’ 6,944’ 6 20 6/21/22 Open LB5A 7,426’ 7,436’ 7,041’ 7,051’ 6 10 6/21/22 Open LB5B 7,472’ 7,492’ 7,089’ 7,107’ 6 20 6/21/22 Open D1 Coal ±9,067’ ±9,086’ ±8,677’ ±8,696’ 6 ±19 TBD Proposed D1 9,100’ 9,190’ 8,710’ 8,800’ 6 90 8/25 &26/23 Open D2_Upper 9,234’ 9,249’ 8,844’ 8,858’ 6 15’ 1/22/20 Open D2_Lower 9,262’ 9,289’ 8,871’ 8,898’ 6 27’ 1/22/20 Open D-3A 9,538’ 9,550’ 9,147’ ±9,159’ 6 12’ 1/22/20 Open D-3B 9,589' 9,596' 9,198’ 9,205’ 6 7 07/18/14 Open 9,589' 9,601' 9,198’ 9,210’ 6 12 07/18/14 Open 9,601' 9,621' 9,210’ 9,230’ 6 6 07/18/14 Open 9,607' 9,617' 9,216’ 9,226’ 6 10 07/11/14 Open D-3C 9,636' 9,648' 9,245’ 9,257’ 6 12 06/28/14 Isolated (7/12/2014) D-4B 9,765' 9,774' 9,374’ 9,383’ 6 9 06/25/14 Isolated (6/28/2014) 9,767' 9,772' 9,376’ 9,381’ 1 5 06/25/14 D-5 9,801' 9,826' 9,410’ 9,435’ 6 25 06/21/14 9,840' 9,851' 9,449’ 9,460’ 6 11 06/14/14 D-6 9,861' 9,870' 9,470’ 9,479’ 6 11 06/14/14 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 16" Conductor N/A Surf 130' 10-3/4' Surface 45.5 /L-80 / BTC 9.950 Surf 1,603' 7-5/8" Intermediate 29.7 / L-80 / BTC Mod 6.875 Surf 5,932' 5" Production 18 / L-80 / DWC/C-HT 4.276 Surf 9,898’ 1. Type of Request:Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: N2 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? Yes No 9. Property Designation (Lease Number): 10. Field: 11. Total Depth MD (ft):Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: Junk (MD): 9,900'N/A Casing Collapse Structural Conductor Surface 2,480 psi Intermediate 4,790 psi Production 10,500 psi 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: 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 Conditions of Approval: Post Initial Injection MIT Req'd? Yes No APPROVED BY Approved by: COMMISSIONER THE AOGCC Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng 5" Swell Packer and N/A 5,434' MD / 5,104' TVD and N/A 9,508'9,626'9,235' Kenai Beluga-Up Tyonek Gas, Tyonek Gas 16" 10-3/4" See Attached Schematic 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Kenai Beluga Unit (KBU) 11-08ZCO 510B Beluga-Up Tyonek Gas 9,508'5" ~3,391psi 9,899' 9,626'; 9,742', 9,885' Length August 22, 2023 N/A 9,899' Perforation Depth MD (ft): 5,932' See Attached Schematic 6,890 psi 5,210 psi 130' 5,567' 130' 1,603' Size 130' 7-5/8"5,932' 1,603' MD Hilcorp Alaska, LLC Proposed Pools: N/A TVD Burst N/A 9,910 psi 1,544' Tubing MD (ft):Perforation Depth TVD (ft): Subsequent Form Required: STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEE A028142 214-044 50-133-20629-00-00 Tubing Size: PRESENT WELL CONDITION SUMMARY Chad Helgeson, Operations Engineer AOGCC USE ONLY Tubing Grade: chelgeson@hilcorp.com 907-777-8405 Noel Nocas, Operations Manager 907-564-5278 Suspension Expiration Date: Will perfs require a spacing exception due to property boundaries? Current Pools: MPSP (psi):Plugs (MD): 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: m n P s t N 66 Form 10-403 Revised 06/2023 Approved application valid for 12 months from date of approval.Submit PDF to aogcc.permitting@alaska.gov By Grace Christianson at 11:50 am, Aug 10, 2023 323-453 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2023.08.08 16:33:29 - 08'00' Noel Nocas (4361) DSR-8/14/23 10-404 CT BOP test to 3500 psi - If CT contingency is performed. Tag CIBP or top of cement to confirm location. BJM 8/15/23 SFD 8/14/2023GCW 08/16/2023JLC 8/16/2023 08/16/23 Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2023.08.16 15:19:49 -05'00' RBDMS JSB 081723 Well Prognosis Well: KBU 11-08Z Date: 8-9-23 Well Name:KBU 11-08Z API Number:50-133-20629-00 Current Status:Producing Gas Well Permit to Drill Number:214-044 Regulatory Contact:Donna Ambruz 777-8305 First Call Engineer:Chad Helgeson (907) 777-8405 (O)(907) 229-4824 (C) Second Call Engineer:Jake Flora (907) 777-8442 (O)(720) 988-5375 (C) Maximum Expected BHP: ~ 4,267 psi @ 8,762’ TVD (Based on RFT data in 43-07Y) Max. Predicted Surface Pressure: ~ 3,391 psi (0.10 psi/ft gas gradient) Brief Well Summary KBU 11-08Z is a grassroots well that was drilled and completed in the Tyonek D sands in 2014 by Hilcorp. It was perf’d and produced from the D3B only until early 2020 when the rest of the Tyonek D sands were added. In 2021 & 2022 the lower Beluga zones were added. It is currently producing at 1,100 mcfd. The purpose of this work/sundry is to isolate the Tyonek Gas Pool 1 and add the Upper Tyonek D-1 sand which is the bottom sand in the Beluga/Upper Tyonek Gas Pool and add rate to the well. Notes Regarding Wellbore Condition x Monobore 5” completion x SL tagged fill @ 9,571’ & fluid level at 7,470’ x Max predicted pressure based on 3 wells where pressures were collected in same sand with RFT tools while drilling in 2017 (KU 11-07X, KBU 32-06, & KBU 43-07Y) Other pressures across proposed perfs range from 1,228 psi – 4,267 psi Pool Tops in KBU 11-08Z based on KU 21-6 reference well in CO 510B - Tyonek Gas Pool: 9,218’ MD; 8,827’ TVD E-Line Procedure 1. SI well (allow to build for at least 24hrs prior to Eline) 2. MIRU N2 Unit and tank, test flowline to 4,000 psi 3. MIRU E-line, PT lubricator to 250 psi low and 4,000 psi high 4. PU GPT and RIH to confirm fluid depth 5. Pressure up well with N2 to push fluid away 6. Set CIBP @ ±9,229’ 7. Dump 25ft of cement (18.6 gal) on top of plug. (Pool isolation plug) Contingency CT Procedure if unable to push fluid below 9,229’ after setting plug a. MIRU CTU, 24hr notice for BOP test b. Conduct BOP test to 250psi Low / 2500psi High c. RIH and unload water with N2 d. RDMO CT e. Trap N2 pressure on tubing per OE recommendation for perforating f.MIRU E-line and pressure control equipment g.PT lubricator to 250psi low / 4,000 psi High CT BOP test to 3500 psi. -bjm Tag plug to verify it is set. -bjm add the Upper Tyonek D-1 sand which is the bottom sand in the Beluga/Upper Tyonek Gas Pool a Well Prognosis Well: KBU 11-08Z Date: 8-9-23 8. Perforate Upper Tyonek sands with 3-1/8” 60 deg phased perf guns with the well shut-in per the table below: Proposed Perforated Intervals Pool Sand Top, MD ft Bottom, MD ft Top, TVD ft Bottom, TVD ft Total ftg, MD Beluga/Upper Tyonek Tyk D1 ±9,100’ ±9,197’ ±8,710’ ±8,806’ ±97’ a. Proposed perfs also shown on the proposed schematic in red font. b. Send the correlation pass to the Reservoir Engineer (Reid Edwards), and Geologist (Daniel Yancey) for confirmation. c. Verify PTs are open to SCADA before perforating. Record tubing pressures at 5, 10 and 15 minutes after each perforating run. d. These sands are in the Beluga/Upper Tyonek Gas Pool per CO 510B. 9. RDMO e-line. 10. Turn well over to production. Contingency if Upper Tyonek D1 sand is not productive: i. MIRU E-line and pressure control equipment ii. PT lubricator to 250psi low / 2,500 psi High iii. RIH and set CIBP at ~9,075’ iv. RDMO, turn well over to production Attachments: 1. Current Wellbore Schematic 2. Proposed Wellbore Schematic 3. Standard Nitrogen Procedure PT Lubricator to 3500 psi High. -bjm _____________________________________________________________________________________ Updated by DMA 07-19-22 SCHEMATIC Kenai Gas Field Well: KBU 11-08Z Last Completed: 7/18/14 PTD: 214-044 JEWELRY DETAIL No Depth Item 1 5,434’5” Swell Packer 2 7,151’RA Marker with 5’ Pup 3 7,482’RA Marker with 5’ Pup 4 8,056’RA Marker with 5’ Pup 5 9,626’CIBP 6 9,742’CIBP 7 9,885’CIBP OPEN HOLE / CEMENT DETAIL 10-3/4”"164BBL’s of cement in 13.5” Hole. Returns to Surface 7-5/8"220BBL’s of cement in 9-7/8” Hole. TOC Est. 900’ 5”175BBL’s of cement in 6-3/4” Hole. SCMT TOC 3,050’ PERFORATION DETAIL Sands Top (MD)Btm (MD)Top (TVD)Btm (TVD)SPF Ft Date Status LB1A 6,524’6,532’6,141’6,149’6 8 6/22/21 Open LB1B 6,554’6,574’6,171’6,191’6 20 6/22/21 Open LB1F 6,762’6,779’6,379’6,396’6 17 6/22/21 Open LB2D 6,903’6,937’6,519’6,553’6 34 6/22/21 Open LB3B 7,081’7,089’6,697’6,705’6 8 6/22/21 Open LB4A 7,226’7,236’6,842’6,852’6 10 6/22/21 Open LB4B 7,270’7,284’6,886’6,900’6 14 6/21/22 Open LB4C 7,308’7,328’6,924’6,944’6 20 6/21/22 Open LB5A 7,426’7,436’7,041’7,051’6 10 6/21/22 Open LB5B 7,472’7,492’7,089’7,107’6 20 6/21/22 Open D2_Upper 9,234’9,249’8,844’8,858’6 15’1/22/20 Open D2_Lower 9,262’9,289’8,871’8,898’6 27’1/22/20 Open D-3A 9,538’9,550’9,147’±9,159’6 12’1/22/20 Open D-3B 9,589'9,596'9,198’9,205’6 7 07/18/14 Open 9,589'9,601'9,198’9,210’6 12 07/18/14 Open 9,601'9,621'9,210’9,230’6 6 07/18/14 Open 9,607'9,617'9,216’9,226’6 10 07/11/14 Open D-3C 9,636' 9,648' 9,245’ 9,257’ 6 12 06/28/14 Isolated (7/12/2014) D-4B 9,765'9,774'9,374’9,383’6 9 06/25/14 Isolated (6/28/2014) 9,767'9,772'9,376’9,381’1 5 06/25/14 D-5 9,801'9,826'9,410’9,435’6 25 06/21/14 9,840'9,851'9,449’9,460’6 11 06/14/14 D-6 9,861'9,870'9,470’9,479’6 11 06/14/14 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 16"Conductor N/A Surf 130' 10-3/4'Surface 45.5 /L-80 / BTC 9.950 Surf 1,603' 7-5/8"Intermediate 29.7 / L-80 / BTC Mod 6.875 Surf 5,932' 5"Production 18 / L-80 / DWC/C-HT 4.276 Surf 9,898’ _____________________________________________________________________________________ Updated by DMA 08-08-23 PROPOSED Kenai Gas Field Well: KBU 11-08Z Last Completed: 7/18/14 PTD: 214-044 JEWELRY DETAIL No Depth Item 1 5,434’5” Swell Packer 2 7,151’RA Marker with 5’ Pup 3 7,482’RA Marker with 5’ Pup 4 8,056’RA Marker with 5’ Pup 5 ±9,229’CIBP w/ 25ft of cement 6 9,626’CIBP 7 9,742’CIBP 8 9,885’CIBP OPEN HOLE / CEMENT DETAIL 10-3/4”"164BBL’s of cement in 13.5” Hole. Returns to Surface 7-5/8"220BBL’s of cement in 9-7/8” Hole. TOC Est. 900’ 5”175BBL’s of cement in 6-3/4” Hole. SCMT TOC 3,050’ PERFORATION DETAIL Sands Top (MD)Btm (MD)Top (TVD)Btm (TVD)SPF Ft Date Status LB1A 6,524’6,532’6,141’6,149’6 8 6/22/21 Open LB1B 6,554’6,574’6,171’6,191’6 20 6/22/21 Open LB1F 6,762’6,779’6,379’6,396’6 17 6/22/21 Open LB2D 6,903’6,937’6,519’6,553’6 34 6/22/21 Open LB3B 7,081’7,089’6,697’6,705’6 8 6/22/21 Open LB4A 7,226’7,236’6,842’6,852’6 10 6/22/21 Open LB4B 7,270’7,284’6,886’6,900’6 14 6/21/22 Open LB4C 7,308’7,328’6,924’6,944’6 20 6/21/22 Open LB5A 7,426’7,436’7,041’7,051’6 10 6/21/22 Open LB5B 7,472’7,492’7,089’7,107’6 20 6/21/22 Open D1 ±9,100’±9,197’8,710’8,806’6 96 TBD Proposed D2_Upper 9,234’9,249’8,844’8,858’6 15’1/22/20 Open D2_Lower 9,262’9,289’8,871’8,898’6 27’1/22/20 Open D-3A 9,538’9,550’9,147’±9,159’6 12’1/22/20 Open D-3B 9,589'9,596'9,198’9,205’6 7 07/18/14 Open 9,589'9,601'9,198’9,210’6 12 07/18/14 Open 9,601'9,621'9,210’9,230’6 6 07/18/14 Open 9,607'9,617'9,216’9,226’6 10 07/11/14 Open D-3C 9,636' 9,648' 9,245’ 9,257’ 6 12 06/28/14 Isolated (7/12/2014) D-4B 9,765'9,774'9,374’9,383’6 9 06/25/14 Isolated (6/28/2014) 9,767'9,772'9,376’9,381’1 5 06/25/14 D-5 9,801'9,826'9,410’9,435’6 25 06/21/14 9,840'9,851'9,449’9,460’6 11 06/14/14 D-6 9,861'9,870'9,470’9,479’6 11 06/14/14 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 16"Conductor N/A Surf 130' 10-3/4'Surface 45.5 /L-80 / BTC 9.950 Surf 1,603' 7-5/8"Intermediate 29.7 / L-80 / BTC Mod 6.875 Surf 5,932' 5"Production 18 / L-80 / DWC/C-HT 4.276 Surf 9,898’ STANDARD WELL PROCEDURE NITROGEN OPERATIONS 12/08/2015 FINAL v1 Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. By Samantha Carlisle at 8:35 am, Jul 21, 2022 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: 07/18/2022 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 AOGCC Eset # BRU 212-24 50283200370000 172015 7/27/2022 AK E-Line CIBP BRU 233-27 50283100260000 163002 7/2/2022 AK E-Line PERF HVA B-16 50231200400000 212133 6/23/2022 AK E-Line PLUG/CEMENT KBU 11-08Z 50133206290000 214044 6/22/2022 AK E-Line PERF KBU 33-06X 50133205290000 203183 6/18/2022 AK E-Line PLUG/CEMENT/PUNCH MPU I-17 50029232120000 204098 7/9/2022 Read CALIPER SRU 32A-33 50133101640100 191014 6/20/2022 Halliburton TMD3D-WFL + Report Please include current contact information if different from above. T36794 T36795 T36796 T36797 T36798 T36799 T36800 Kayla Junke Digitally signed by Kayla Junke Date: 2022.07.19 09:04:04 -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:McLellan, Bryan J (OGC) To:Chad Helgeson Cc:Donna Ambruz; Roby, David S (OGC); Davies, Stephen F (OGC); Boyer, David L (OGC) Subject:RE: KGF KBU 11-08Z (PTD# 214-044) Sundry # 321-512 Date:Tuesday, June 14, 2022 4:07:00 PM Attachments:KBU 11-08Z LB Perf Add revision 6-14-22.pdf KBU 11-08Z Proposed Schematic 06-14-2022.pdf Chad, I will attach your email and revised procedure the existing Sundry. This email serves as approval to add the additional perfs within the same pool as outlined in your revised procedure attached. Regards 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: Tuesday, June 14, 2022 3:15 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Cc: Donna Ambruz <dambruz@hilcorp.com> Subject: KGF KBU 11-08Z (PTD# 214-044) Sundry # 321-512 Bryan We submitted and you approved Sundry # 321-512 for perf adds in Kenai Gas Field last fall. We have not have not started any work on it. We are planning to start work soon on it, but we would also like to add some intervals to it that are within the same proposed Upper Tyonek/Beluga Pool. Attached is a revised procedure, with the changes highlighted in red font (perf interval and dates updated) and an updated schematic. Should we submit a change of approved sundry for these perf modifications, or can you approve the changes via email? 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 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 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. Well Prognosis Well: KBU 11-08Z Date:6-14-2022 Well Name:KBU 11-08Z API Number:50-133-20629-00 Current Status:Producing Gas Well Leg:N/A Estimated Start Date:June 28, 2022 Rig:E-line Reg. Approval Req’d?10-403 Date Reg. Approval Rec’vd: Regulatory Contact:Donna Ambruz 777-8305 Permit to Drill Number:214-044 First Call Engineer:Chad Helgeson (907) 777-8405 (O) (907) 229-4824 (C) Second Call Engineer:Jake Flora (907) 777-8442 (O) (720) 988-5375 (C) AFE Number: Maximum Expected BHP:~ 2,900 psi @ 6,889’ TVD (Based on RFT data) Max. Predicted Surface Pressure:~ 2,211 psi (0.10 psi/ft gas gradient) Brief Well Summary Changes to approved sundry # 321-512 are highlighted in Red font. All the black font is original approved sundry. KBU 11-08Z is grassroots well drilled and completed in the Tyonek D in 2014 by Hilcorp. It was perf’d and produced from the D3B only until early 2020 when the rest of the Tyonek D sands were added. It is currently producing at 1,500 1,000 mcfd. The purpose of this work/sundry is to add 5 10 lower Beluga sands in order to add rate. E-Line Procedure 1. MIRU E-line, PT lubricator to 250 psi low and 3000 psi high. 2. Perforate lower Beluga sands with 2-7/8” 6 SPF 60 deg phased perf guns with the well flowing. Gross Proposed Perforated Intervals Pool Sand Top, MD ft Bottom, MD ft Top, TVD ft Bottom, TVD ft Total ftg, MD Beluga/Upper Tyonek LB 1A ±6,524’ ±6,532’ ±6,141’ ±6,149’ ±8’ Beluga/Upper Tyonek LB 1B ±6,554’ ±6,574’ ±6,171’ ±6,191’ ±20’ Beluga/Upper Tyonek LB 1F ±6,762’ ±6,779’ ±6,379’ ±6,396’ ±20’ Beluga/Upper Tyonek LB2D ±6,904’ ±6,92437’±6,520’ ±6,54053’±20’33’ Beluga/Upper Tyonek LB3B ±7,080’ ±7,090’ ±6,697’ ±6,707’ ±10’ Beluga/Upper Tyonek LB4A ±7,225’ ±7,235’ ±6,840’ ±6,850’ ±10’ Beluga/Upper Tyonek LB4B ±7,273’ ±7,283’ ±6,889’ ±6,899’ ±10’ Beluga/Upper Tyonek LB 4C ±7,308’ ±7,328’ ±6,924’ ±6,944’ ±20’ Beluga/Upper Tyonek LB5A ±7,426’ ±7,436’ ±7,041’ ±7,051’ ±10’ Well Prognosis Well: KBU 11-08Z Date:6-14-2022 Beluga/Upper Tyonek LB 5B ±7,472’ ±7,492’ ±7,087’ ±7,107’ ±20’ a. Send the correlation pass to the Reservoir Engineer (Trudi Hallett), and Geologist (Ben Siks) for confirmation. b. Install Crystal gauges (or verify PTs are open to SCADA) before perforating. Record tubing pressures at 5, 10 and 15 minutes after each perforating run. c. Sand intervals may be grouped or shot one at a time and flow tested to the system. If a sand makes water, then a plug or an isolation patch may be set prior to moving up to the next sand interval. Nitrogen may be employed to depress fluid level. 3. RDMO e-line. 4. Turn well over to production. 5.Production log required within 30 days per CO 510B, Rule 5b. Attachments: 1. Current Wellbore Schematic 2. Proposed Wellbore Schematic (revised) 3. Standard Nitrogen Procedure _____________________________________________________________________________________ Updated by CAH 06-14-22 Revised PROPOSED Kenai Gas Field Well: KBU 11-08Z Last Completed: 7/18/14 PTD: 214-044 JEWELRY DETAIL No Depth Item 1 5,434’5” Swell Packer 2 7,151’RA Marker with 5’ Pup 3 7,482’RA Marker with 5’ Pup 4 8,056’RA Marker with 5’ Pup 5 9,626’CIBP 6 9,742’CIBP 7 9,885’CIBP OPEN HOLE / CEMENT DETAIL 10-3/4”"164BBL’s of cement in 13.5” Hole. Returns to Surface 7-5/8"220BBL’s of cement in 9-7/8” Hole. TOC Est. 900’ 5”175BBL’s of cement in 6-3/4” Hole. SCMT TOC 3,050’ PERFORATION DETAIL Sands Top (MD)Btm (MD)Top (TVD)Btm (TVD)SPF Ft Date Status Lower Beluga ~6,524’ ~7,492’ ~6,141’ ~7,107’ 6 ~161 TBD Proposed D2_Upper 9,234’±9,249’8,844’8,858’6 15’1/22/20 Open D2_Lower 9,262’9,289’8,871’8,898’6 27’1/22/20 Open D-3A 9,538’9,550’9,147’±9,159’6 12’1/22/20 Open D-3B 9,589'9,596'9,198’9,205’6 7 07/18/14 Open 9,589'9,601'9,198’9,210’6 12 07/18/14 Open 9,601'9,621'9,210’9,230’6 6 07/18/14 Open 9,607'9,617'9,216’9,226’6 10 07/11/14 Open D-3C 9,636' 9,648' 9,245’ 9,257’ 6 12 06/28/14 Isolated (7/12/2014) D-4B 9,765'9,774'9,374’9,383’6 9 06/25/14 Isolated (6/28/2014) 9,767'9,772'9,376’9,381’1 5 06/25/14 D-5 9,801'9,826'9,410’9,435’6 25 06/21/14 9,840'9,851'9,449’9,460’6 11 06/14/14 D-6 9,861'9,870'9,470’9,479’6 11 06/14/14 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 16"Conductor N/A Surf 130' 10-3/4'Surface 45.5 /L-80 / BTC 9.950 Surf 1,603' 7-5/8"Intermediate 29.7 / L-80 / BTC Mod 6.875 Surf 5,932' 5"Production 18 / L-80 / DWC/C-HT 4.276 Surf 9,898’ 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: N2 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): 9,900'N/A Casing Collapse Structural Conductor Surface 2,480psi Intermediate 4,790psi Production 10,500psi 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 Commission Representative: GINJ Op Shutdown Abandoned Taylor Wellman 777-8449 Contact Name: Todd Sidoti Operations Manager Contact Email: Contact Phone: 777-8443 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by:COMMISSIONER THE COMMISSION Date: Comm.Comm.Sr Pet Eng Sr Pet Geo Sr Res Eng Authorized Title: 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: October 6, 2021 N/A 9,899' Perforation Depth MD (ft): 5,932' See Attached Schematic 9,899' 9,508'5" 16" 10-3/4" 130' 7-5/8"5,932' 1,603'5,210psi 130' 1,544' 5,567' 130' 1,603' N/A TVD Burst N/A 9,910psi MD 6,890psi Length Size CO 510A Hilcorp Alaska, LLC 3800 Centerpoint Dr, Suite 1400 Anchorage Alaska 99503 PRESENT WELL CONDITION SUMMARY STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEE A028142 214-044 50-133-20629-00-00 Kenai Beluga Unit (KBU) 11-08Z Kenai Gas Field / Tyonek Gas Pool 1 & Beluga/Upper Tyonek Gas Pool COMMISSION USE ONLY Authorized Name: Tubing Grade: Tubing MD (ft): See Attached Schematic todd.sidoti@hilcorp.com 9,508'9,800'9,409'2,211 N/A 5" Swell Packer ; N/A 5,434' MD / 5,104' TVD ; N/A Perforation Depth TVD (ft): Tubing Size: Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. 321-512 By Meredith Guhl at 11:21 am, Sep 29, 2021 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.09.29 10:47:59 -08'00' Taylor Wellman (2143) Beluga/Upper Tyonek Gas Pool CO 510B 10-404 SFD 9/29/2021 SFD 9/29/2021 DSR-10/5/21 SFD 9/29/2021 Perforate New Pool Production allocation between the two pools to be done in accordance with CO 510B. BJM 10/6/21 dts 10/6/2021 JLC 10/6/2021 Jeremy Price Digitally signed by Jeremy Price Date: 2021.10.06 13:58:39 -08'00' RBDMS HEW 10/7/2021 Well Prognosis Well: KBU 11-08Z Date: 09/23/2021 Well Name: KBU 11-08Z API Number: 50-133-20629-00 Current Status: Producing Gas Well Leg: N/A Estimated Start Date: October 6, 2021 Rig: E-line Reg. Approval Req’d? 10-403 Date Reg. Approval Rec’vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 214-044 First Call Engineer: Todd Sidoti (907) 777-8443 (O) (907) 632-4113 (C) Second Call Engineer: Jake Flora (907) 777-8442 (O) (720) 988-5375 (C) AFE Number: Maximum Expected BHP: ~ 2,900 psi @ 6,889’ TVD (Based on RFT data) Max. Predicted Surface Pressure: ~ 2,211 psi (0.10 psi/ft gas gradient) Brief Well Summary KBU 11-08Z is grassroots well drilled and completed in the Tyonek D in 2014 by Hilcorp. It was perf’d and produced from the D3B only until early 2020 when the rest of the Tyonek D sands were added. It is currently producing at 1500 mcfd. The purpose of this work/sundry is to add 5 lower Beluga sands in order to add rate. E-Line Procedure 1. MIRU E-line, PT lubricator to 250 psi low and 3000 psi high. 2. Perforate lower Beluga sands with 2-7/8” 6 SPF 60 deg phased perf guns with the well flowing. Gross Proposed Perforated Intervals Sand Top, MD ft Bottom, MD ft Top, TVD ft Bottom, TVD ft Total ftg, MD LB2D ±6,904’ ±6,924’ ±6,520’ ±6,540’ ±20’ LB3B ±7,080’ ±7,090’ ±6,697’ ±6,707’ ±10’ LB4A ±7,225’ ±7,235’ ±6,840’ ±6,850’ ±10’ LB4B ±7,273’ ±7,283’ ±6,889’ ±6,899’ ±10’ LB5A ±7,426’ ±7,436’ ±7,041’ ±7,051’ ±10’ a. Send the correlation pass to the Reservoir Engineer (Trudi Hallett), and Geologist (Ben Siks) for confirmation. b. Install Crystal gauges (or verify PTs are open to SCADA) before perforating. Record tubing pressures at 5, 10 and 15 minutes after each perforating run. c. Sand intervals may be grouped or shot one at a time and flow tested to the system. If a sand makes water, then a plug or an isolation patch may be set prior to moving up to the next sand interval. Nitrogen may be employed to depress fluid level. 3. RDMO e-line. 4. Turn well over to production. o add 5 lower Beluga sands early 2020 when the rest of the Tyonek D sands were added. SFD 9/29/2021 CO 510B Rule 5b allows commingling of downhole production from Beluga/Upper Tyonek Gas Pool and Tyonek Gas Pool 1. -00 (All within Tyonek Gas Pool 1) completed in the Tyonek D (Within Beluga/Upper Tyonek Gas Pool) SFD SFD 9/29/2021 Production log required within 30 days per CO 510B. bjm Well Prognosis Well: KBU 11-08Z Date: 09/23/2021 Attachments: 1. Current Wellbore Schematic 2. Proposed Wellbore Schematic 3. Standard Nitrogen Procedure _____________________________________________________________________________________ Updated by DMA 01-29-20 SCHEMATIC Kenai Gas Field Well: KBU 11-08Z Last Completed: 7/18/14 PTD: 214-044 JEWELRY DETAIL No Depth Item 1 5,434’5” Swell Packer 2 7,151’RA Marker with 5’ Pup 3 7,482’RA Marker with 5’ Pup 4 8,056’RA Marker with 5’ Pup 5 9,626’CIBP 6 9,742’CIBP 7 9,885’CIBP OPEN HOLE / CEMENT DETAIL 10-3/4”"164BBL’s of cement in 13.5” Hole. Returns to Surface 7-5/8"220BBL’s of cement in 9-7/8” Hole. TOC Est. 900’ 5”175BBL’s of cement in 6-3/4” Hole. TOC Est. 1,488’ PERFORATION DETAIL Sands Top (MD)Btm (MD)Top (TVD)Btm (TVD)SPF Ft Date Status D2_Upper 9,234’±9,249’8,844’8,858’15’1/22/20 Open D2_Lower 9,262’9,289’8,871’8,898’27’1/22/20 Open D-3A 9,538’9,550’9,147’±9,159’12’1/22/20 Open D-3B 9,589'9,596'9,198’9,205’6 7 07/18/14 Open 9,589'9,601'9,198’9,210’6 12 07/18/14 Open 9,601'9,621'9,210’9,230’6 6 07/18/14 Open 9,607'9,617'9,216’9,226’6 10 07/11/14 Open D-3C 9,636' 9,648' 9,245’ 9,257’ 6 12 06/28/14 Isolated (7/12/2014) D-4B 9,765'9,774'9,374’9,383’6 9 06/25/14 Isolated (6/28/2014) 9,767'9,772'9,376’9,381’1 5 06/25/14 D-5 9,801'9,826'9,410’9,435’6 25 06/21/14 9,840'9,851'9,449’9,460’6 11 06/14/14 D-6 9,861'9,870'9,470’9,479’6 11 06/14/14 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 16"Conductor N/A Surf 130' 10-3/4'Surface 45.5 /L-80 / BTC 9.950 Surf 1,603' 7-5/8"Intermediate 29.7 / L-80 / BTC Mod 6.875 Surf 5,932' 5"Production 18 / L-80 / DWC/C-HT 4.276 Surf 9,898’ _____________________________________________________________________________________ Updated by TCS 09-23-21 PROPOSED SCHEMATIC Kenai Gas Field Well: KBU 11-08Z Last Completed: 7/18/14 PTD: 214-044 JEWELRY DETAIL No Depth Item 1 5,434’5” Swell Packer 2 7,151’RA Marker with 5’ Pup 3 7,482’RA Marker with 5’ Pup 4 8,056’RA Marker with 5’ Pup 5 9,626’CIBP 6 9,742’CIBP 7 9,885’CIBP OPEN HOLE / CEMENT DETAIL 10-3/4”"164BBL’s of cement in 13.5” Hole. Returns to Surface 7-5/8"220BBL’s of cement in 9-7/8” Hole. TOC Est. 900’ 5”175BBL’s of cement in 6-3/4” Hole. TOC Est. 1,488’ PERFORATION DETAIL Sands Top (MD)Btm (MD)Top (TVD)Btm (TVD)SPF Ft Date Status Lower Beluga ~6,904’ ~7,436’ ~6,520’ ~7,051’ 6 ~60 TBD Open D2_Upper 9,234’±9,249’8,844’8,858’6 15’1/22/20 Open D2_Lower 9,262’9,289’8,871’8,898’6 27’1/22/20 Open D-3A 9,538’9,550’9,147’±9,159’6 12’1/22/20 Open D-3B 9,589'9,596'9,198’9,205’6 7 07/18/14 Open 9,589'9,601'9,198’9,210’6 12 07/18/14 Open 9,601'9,621'9,210’9,230’6 6 07/18/14 Open 9,607'9,617'9,216’9,226’6 10 07/11/14 Open D-3C 9,636' 9,648' 9,245’ 9,257’ 6 12 06/28/14 Isolated (7/12/2014) D-4B 9,765'9,774'9,374’9,383’6 9 06/25/14 Isolated (6/28/2014) 9,767'9,772'9,376’9,381’1 5 06/25/14 D-5 9,801'9,826'9,410’9,435’6 25 06/21/14 9,840'9,851'9,449’9,460’6 11 06/14/14 D-6 9,861'9,870'9,470’9,479’6 11 06/14/14 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 16"Conductor N/A Surf 130' 10-3/4'Surface 45.5 /L-80 / BTC 9.950 Surf 1,603' 7-5/8"Intermediate 29.7 / L-80 / BTC Mod 6.875 Surf 5,932' 5"Production 18 / L-80 / DWC/C-HT 4.276 Surf 9,898’ STANDARD WELL PROCEDURE NITROGEN OPERATIONS 12/08/2015 FINAL v1 Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS ilGVL1 a L. Ill FEB 21 2020 A®GCC 1. Operations Abandon Ll Plug Perforations U Fracture Stimulate LJ Pull Tubing Ll Operations shutdown Li Performed: Suspend ❑ Perforate ❑Z Other Stimulate ❑ Alter Casing ❑ Change Approved Program ❑ Plug for Redrill ❑ erforate New Pool ❑ Repair Well ❑ Re-enter Susp Well ❑ Other: N2 ❑✓ 2. Operator 4. Well Class Before Work: 5. Permit to Drill Number: Name: Hilcorp Alaska, LLC Development Q Stratigraphic ❑ Exploratory ❑ Service ❑ 214-044 3. Address: 3800 Centerpoint Dr, Suite 1400 Anchorage, 6. API Number: AK 99503 50-133-20629-00-00 7. Property Designation (Lease Number): 8. Well Name and Number: FEE A028142 Kenai Beluga Unit (KBU) 11-08Z 9. Logs (List logs and submit electronic and printed data per 20AAC25.071): 10. Field/Pool(s): N/A Kenai Gas Field / Tyonek Gas Pool 1 11. Present Well Condition Summary: 9626, Total Depth measured 9,900 feet Plugs measured 9742, 9885 feet true vertical 9,508 feet Junk measured N/A feet Effective Depth measured 9,626 feet Packer measured 5,434 feet true vertical 9,235 feet true vertical 5,104 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 130' 16" 130' 130' Surface 1,603' 10-3/4" 1,603' 1,544' 5,21 Ops! 2,480psi Intermediate 5,932' 7-5/8" 5,932' 5,567' 6,890psi 4,790psi Production 9,899' 5" 9,899' 9,508' 9,910psi 10,500psi Liner Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth) N/A N/A N/A N/A Packers and SSSV (type, measured and true vertical depth) 5" Swell Pkr; N/A 5,434' MD 5,104' TVD 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 Wafer -Bbl Casing Pressure Tubing Pressure Prior to well operation: 1 0 0 0 1 40 1 15 Subsequent to operation: 10 0 0 1 35 115 14. Attachments (required per20 AAC 25.070, 25.071, &25.283) 15. Well Class after work: Daily Report of Well Operations ❑' Exploratory❑ Development [2] Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16. Well Status after work: Oil Gas WDSPL LJ Printed and Electronic Fracture Stimulation Data ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP ❑ SPLUG ❑ 17. 1 hereby Certify that the foregoing i5 true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: y 319684 341 Authorized Name: Taylor Wellman 777-8449 Contact Name: Ted Kramer Authorized Title: O% Manager Contact Email: tkramerldhilcom.com Authorized Signature: Date:oZ ?D ZoW Contact Phone: 777-8420 Form 10-404 Revised 4/2017 ��/�� '2%"� RBDMSL�FEB 2 41010 Submit Original Only Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date KBU 11-08Z E-Line 50-133-20629-00-00 214-044 1/22/20 1/22/20 Daily Operations: 01/22/2020 - Wednesday Sign in. Mobe to location. PTW, JSA and SIMOPS with AKE-Line and SLB N2. Rig up hard lines and lubricator. PT to 250 psi low and 3,500 psi high. Well shut in. TP - 150 psi. RIH w/GPT, tie into OHL and tag at 9,613'. Run correlation log and send to town. Found fluid level at 9,000' and pushed it away as we pressured well up to 1,200 psi. POOH. Had to add 9' to GPT log MD. RIH w/ 2-7/8" x 12' HC Razor, 6 spf, 60 deg phase and tie into GPT log. Run correlation log and send to town. Got ok to perf D3A from 9,538' to 9,550'. with 869 psi on scada. Went to 866.2 psi when gun fired. 5 min - 848.5 psi, 10 min - 839.1 psi and 15 min - 827.8 psi. POOH. All shots fired and gun was gas cut fluid. RIH w/ 2-7/8" x 27' HC Razor, 6 spf, 60 deg phase and tie into GPT log. Run correlation log and send to town. Got ok to pert D2 Lower from 9,262' to 9,289' with 1190 psi on Lub. 5 min - 1,160 psi, 10 min - 1,125 psi and 15 min - 1,100 psi. POOH. All shots fired and gun was dry. RIH w/ 2-7/8" x 15' HC Razor, 6 spf, 60 deg phase and tie into GPT log. Run correlation log and send to town. Got ok to pert D2 Upper from 9,234' to 9,249' with 700 psi on Lub. 5 min - 670 psi, 10 min - 650 psi and 15 min - 620 psi. POOH. All shots fired and gun was Dry Rig down lubricator and equipment and turn well over to field. Kenai Gas Field Well: SCHEMATIC Last Completed: 7/18/14 Hilcorp Alaska, LLf. PTD: 214-044 CASING DETAIL B] 163/4" 7-5/8 RXB: MSL =18.6 9 �� D30foD6 OR 5,Q7An ANVE s• ` TD=9,9W(MD) /9,509'(TVD) PBTD=9,626'(MD) /9,235'(TVD) Size Type Wt/Grade/Conn ID Top Btm 16" Conductor N/A 3 Surf 130' 10-3/4' Surface 45.5/L-80/BTC 9.950 Surf 1,603' 7-5/8" Intermediate 29.7 / L-80/ BTC Mod 6.875 Surf 1 5,932' 5" Production 18/L-80/DWC/C-HT 4.276 Surf 9,898' JEWELRY DETAIL No Depth Item 1 5,434' S" Swell Packer 2 7,151' RA Marker with 5' Pup 3 7,482' RA Marker with 5' Pu 4 8,056' RA Marker with 5' Pup 5 9,626' CIBP 6 9,742' CIBP 7 9,885' CIBP OPEN HOLE / CEMENT DETAIL 10-3/4"" 164BBL's of cement in 13.5" Hole. Returns to Surface 7-5/8" 2208BL's of cement in 9-7/8" Hole. TOC Est. 900' 5" 175BBL's of cement in 6-3/4" Hole. TOC Est. 1,488' PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) SPF Ft Date Status D2 Upper 9,234' 19,249' 8,844' 8,858' 15' 1/22/20 Open D2 Lower 9,262' 9,289' 8,871' 8,898' 27' 1/22/20 Open D -3A 9,538' 9,550, 9,147' ±9,159' 12' 1/22/20 Open 9,589' 9,596' 9,198' 9,205' 6 7 07/18/14 Open 9.589' 9,601' 9,198' 9,210' 6 12 07/18/14 Open D-38 9,601' 9,621' 9,210' 9,230' 6 6 07/18/14 Open 9,607' 9,617' 9,216' 9,226' 6 10 07/11/14 Open D -3C 9,636' 9,648' 9,245' 9,257' 6 12 06/28/14Isolated (7/12/2014) 9,765' 9,774' 9,374' 9,383' 6 9 06/25/14 D411 9,767' 9,772' 9,376' 9,381' 1 5 06/25/14 9,801' 9,826' 9,410' 9,435' 6 25 06/21/14 Isolated D-5 9,840' 9,851' 9,449' 9,464 6 13 06/14/14 (6/28/2014) D-6 9,861' 9,870' 9,470, 9,479' 6 11 06/14/14 Updated by DMA 01-29-20 THE STATE ALASKA GOVERNOR MIKE DUNLEAVY Bo York Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Kenai Gas Field, Tyonek Gas Pool 1, KBU 11-08Z Permit to Drill Number: 214-044 Sundry Number: 319-579 Dear Mr. York: Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 w .aogcc.alaska.gov Enclosed is the approved application for the 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, Vr DATED thi J day of December, 2019. RBDMS JAN 0 2 2020 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25 280 r DEC 18 2019 121119 1. Type of Request: Abandon ❑ Plug Perforations ❑ Fracture Stimulate Q Repair Well ❑ Operations shutdown ❑ Suspend ❑ Perforate I] ' Other Stimulate ❑ Pull Tubing ❑ Change Approved Program ❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ Other: N2 ❑� 2. Operator Name: Hilcorp Alaska, LLC 4. Current Well Class: 5. Permit to Drill Number: Exploratory ❑ Development ❑� Stratigraphic ❑ Service ❑ 214-044 ' 3. Address: 3800 Centerpoint Drive, Suite 1400 6. API Number: Anchorage, Alaska 99503 50-133-20629-00-00 7. If perforating: 8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool?r CO 510 Will planned perforations require a spacing exception? Yes El No Q Kenai Beluga Unit (KBU) 11-08Z 9. Property Designation (Lease Number): 10. Field/Pool(s): FEE A028142 Kenai Gas Field / Tyonek Gas Pool 1 L 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi): Plugs (MD): Junk (MD): 9,900' 9,508' 9,800' 9,409' N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 130' 16" 130' 130' Surface 1,603' 10-3/4" 1,603' 1,544' 5,210 psi 2,480 psi Intermediate 5,932' 7-5/8" 5,932' 5,567' 6,890 psi 4,790 psi Protluction9899- 5" 9,899• 9,508' 9,910 psi 10,500 psi Liner Perforation Depth MD (ft):Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached Schematic See Attached Schematic N/A N/A N/A Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): 5" Swell Packer and N/A 5,434' MD / 5,104' TVD and N/A 12. Attachments: Proposal Summary n Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic ❑ Development Q Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Commencing OperationsJanuary 3rd, 2020 OIL F]WINJ ❑ WDSPL ❑ Suspended El: GAS WAG ❑ GSTOR ❑ SPLUG ❑ 16. Verbal Approval: Date: Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name: Bo York 777-8345 Contact Name: Christina Twogood Authorized Title: Operations Manager Contact Email: CtWO OOd hllcor .cont Contact Phone: 777-8443 Authorized Signatur : Date: 1 O es, 2-•0 AV COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Suntlry Number: Plug Integrity 0 BOP Test Mechanical Integrity Test 0 Location Clearance Q Other: -1BDMS AN 0 2 2010 Post Initial Injection MIT Req'd? Yes ❑ No Q Spacing Ex ption Required? E] No Subsequent Form Required: / (� °- 7 ® 4f \Yes •�J. APPROVED BY Approved by: x�. COMMISSIONER THE COMMISSION Date: 1 Jam' J Fo 10-403 Revised 11/015Appr2ovepl at®i�+4Eli� jor�7� r�rjtFrthe date of royal/u Submit Form and v 11 `` �V '' vv �•••, A%P11 Attach�nent in Duplicate t2 L 7Jt a 1x a R Ililcom Alaska, LU Well Prognosis Well: KBU 11-08Z Date:12/17/2019 Well Name: KBU 11-08Z API Number: 50-133-20629-00-00 Current Status: Producing Gas Well Leg: N/A Estimated Start Date: January 3rd, 2020 Rig: E -Line Reg. Approval Req'd? Yes Date Reg. Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 214-044 First Call Engineer: Christina Twogood (907) 777-8443 (907) 378-7323 (C) Second Call Engineer: Ted Kramer (907) 777-8420 (985) 867-0665 (C) AFE Number: Current BHP: Max. Expected BHP: Max. Potential Surface Pressure: Brief Well Summary — 650 psi @ 9,198' TVD 1,502 psi @ 9,159' TVD — 586 psi (Calculated from RFT data on 4/4/17) (Based on offset well RFT data on 4/4/17) (Based on expected BHP and gas gradient to surface (0.1 psi/ft)) In 2014, KBU 11-08Z was drilled as a grassroots well and completed in the Tyonek D. It was perforated and produces from the D36 only. The purpose of this work/sundry is to add perforations in the Deep Tyonek D3A and D2 sands. o Notes Regarding Wellbore Condition • The well is currently producing 900 MCFD, 3 BWPD. • Minimum ID is 4.276". • Last tag @ 9,613' KB w/ fluid sample bailer on 1/31/2018. Safety Concerns <Discuss nitrogen asphyxiation concerns and identify any areas where nitrogen could collect and people could enter. • Consider tank placement based on wind direction and current weather forecast (venting nitrogen during thisjob). • Ensure all crews are aware of stop job authority. E -Line Procedure 1. MIRU E -Line and pressure control equipment. PT lubricator to 250 psi Low/ 3,500 psi High. 2. RIH with GPT tool and find fluid level. If fluid is over the depth of the new perfs, discuss using Nitrogen with the Operations Engineer. �3. If needed, RU Nitrogen Truck, pressure up on well and push water back into formation. Use GPT u tool to confirm water level is below interval to pert. 4. RU perf guns. 5. RIH and perforate the following interval: 0 Ilile.rp Alaska, M Well Prognosis Well: KBU 11-08Z Date:12/17/2019 Zone Sand Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Tyonek D2_Upper +9,234' +9,249' +8,844' +8,858' 15' Tyonek D2_Lower +9,262' +9,289' +8,871' +8,898' 27' Tyonek D3A +9,538' +9,550' +9,147' +9,159' 12' a. Discuss with Operations Engineer pressuring up well to 1200 psi before perforating. b. Proposed perfs also shown on the proposed schematic in red font. c. Final Perfs tie-in sheet will be provided in the field for exact pert intervals. d. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation. e. Use Gamma/CCL to correlate. f. Install Crystal gauges (or verify PTs are open to SCADA) before perforating. Record tubing pressures before and after each perforating run. g. All perforations in table above are located in the Tyonek Gas Pool 1 based on Conservation Order No. 510. 6. POOH. 7. RD a -line. 8. Turn well over to production. (Test SSV with -in 5 days of stable production on well — notify AOGCC 24hrs before testing) E -line Procedure (Contingency) 1. If any zone produces sand and/or water or needs isolated: 2. MIRU E -Line and pressure control equipment. PT lubricator to 250 psi Low / 3,500 psi High. 3. RIH and set 5" Casing Patch or set 5" CIBP above the zone and dump 35' of cement on top of the plug. Attachments: 1. Current Well Schematic 2. Proposed Well Schematic 3. Standard Well Procedure—N2 Operations iG91 B corn Alaska, LLC 7-5/8 RIB: MSL=18.6 9 3 4 5,6.7�J 5„ t. 1D=9,9W(MD) /9,50Y(TVD) PBTD=9,812'(MD) /9,421'(TVD) SCHEMATIC CASING DETAIL Kenai Gas Field Well: KBU 11-08Z Last Completed: 7/18/14 PTD: 214-044 Size Type Wt/Grade/Conn ID I Top I Btm 16" Conductor N/A 3 I Surf 1 130' 10-3/4' Surface 45.5/L-80/BTC 9.950 Surf 1,603' 7-5/8" Intermediate 29.7 / L-80/ BTC Mod 6.875 Surf 5,932' 5" Production 18 / L-80 / DWC/C-HT 4.276 Surf 9,898' JEWELRY DETAIL No Depth Item 1 5,434' S" Swell Packer 2 7,151' RA Marker with 5' Pup 3 7,482' RA Marker with 5' Pup 4 8,056' RA Marker with 5' Pup 5 9,626' CIBP 6 9,742' CIBP 7 9,885' CIBP OPEN HOLE / CEMENT DETAIL 10-3/4"" 1648BL's of cement in 13.5" Hole. Returns to Surface 7-5/8" 2208BVs of cement in 9-7/8" Hole. TOC Est. 900' 5" 175BBL's of cement in 6-3/4" Hole. TOC Est. 1,488' I J 7:7 Y�T:7e�i FiT��til i �\II Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) SPF Ft Date Status 9,589' 9,596' 9,198' 9,205' 6 7 07/18/14 Open D-313 9,589' 9,601' 9,198' 9,210' 6 12 07/18/14 Open 9,601' 9,621' 9,210' 9,230' B 6 07/18/14 Open 9,607' 9,617' 9,216' 9,226' 6 10 07/11/14 Open D -3C 9,636' 9,648' 9,245' 9,257 6 12 06/28/14 Isolated (7/12/2014) D-413 9,765 9,774' 9,374' 9,383' 6 9 06/25/14 9,7fi7' 9,772' 9,376' 9,381' 1 5 06/25/14 D-5 ,801 9.826 9,410 9,435' 6 25 06/21/1 4 Isolated 99, 840' 9,851' 9,449' 9,460' 6 11 06/14/14 (6/28/2014) D-6 9,861' 9,870' 9,470' 9,479' 6 11 06/14/14 Updated by DMA 08-12-14 B corn Alaska. LLC RIB: PoSL=18.6 16' 163/4" M 3 \4 a A 4 0 D2 U D2 L i 1D3A 1' }DXWD6 5,G7 5" TD--9,9W(MD) /9,50Y(TVD) PBTD=9,812'(MD) /9,421'(TVD) PROPOSED SCHEMATIC CASING DETAIL Kenai Gas Field Well: KBU 11-O8Z Last Completed: 7/18/14 PTD: 214-044 Size Type Wt/Grade/Conn ID I Top I Btm 16" Conductor N/A 3 Surf 130' 103/4' Surface 45.5/L-80/BTC 9.950 Surf 1,603' 7-5/8" Intermediate 29.7 / L-80 / BTC Mod 6.875 Surf 5,932' 5" Production 18/L-80/DWC/C-HT 4.276 Surf 9,898' JEWELRY DETAIL No Depth Item 1 5,434' S" Swell Packer 2 7,151' RA Marker with 5' Pup 3 7,482' RA Marker with 5' Pup 4 8,056' It Marker with 5' Pup 5 9,626' CIBP 6 9,742' CIBP 7 9,885' CIBP OPEN HOLE / CEMENT DETAIL 10-3/4"" 164BBVS of cement in 13.5" Hole. Returns to Surface 7-5/8" ?2OBBI!s of cement in 9-7/8" Hole. TOC Est. 900' 5" 175BBL's of cement in 6-3/4" Hole. TOC Est. 1,488' PFRFCIRATION nFTAII Sands TOP (MD) Btm (MD) Top (TVD) F Btm (TVD) SPF Ft Date Status D2 Upper 19,234' ±9,249' ±8,844• 16,858' 15' TBD Proposed D2 Lower ±9,262' ±9,289' ±8,871' ±8,898' 27' TBD Proposed D -3A ±9,538' ±9,550' ±9,147' ±9,159' 12' TBD Proposed 9,589' 9,596' 9,198' 9,205' 6 7 07/18/14 Open D 3B 9,589' 9,601' 9,198' 9,214 6 12 07/18/14 Open 9,601' 9,621' 9,210' 9,23(Y 6 6 07/18/14 Open 9,607' 9,617' 9,216' 9,226' 6 30 07/11/14 Open D -3C 9,636' 9,648' 9,245' 9,257' 6 12 06/28/14 Isolated (7/12/2014) D -4B 9,765' 9,774' 9,374' 9,383' 6 9 06/25/14 9,767' 9,772' 9,376' 9,381' 1 5 06/25/14 D 5 9,801' 9,826' 9,410' 9,435' 6 25 06/21/14 Isolated 9,840' 9,851' 9,449' 9,460' 6 11 06/14/14 (6/28/2014) D-6 9,861' 9,870' 9,470' 9,479' 6 1 11 06/14/14 Updated by TRH 12-17-2019 STANDARD WELL PROCEDURE Hik•orp Xiaska, LLC NITROGEN OPERATIONS 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre -Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4 -gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/02 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures 02 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. 12/08/2015 FINAL v1 Page 1 of 1 Hilcorp Alaska, LLC Post Office Box 244027 Anchorage,AK 99524-4027 3800 Centerpoint Drive Suite 1400 Anchorage,AK 99503 RECEIVEDPhFaxon 907/777-8310 8012 May 28, 2014 MAY 2 8 2014 AOGCC a � I Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 W. 7t" Avenue, Suite 100 Anchorage, AK 99501 Re: Expansion of Coiled Tubing Work at Ninilchik Unit and Kenai Gas Field Dear Commissioner Foerster: Attached for your information are additional wells that Hilcorp AK has identified that require coiled tubing operations but do not require sundry approval. The wells listed below in bold print are in addition to the original wells requested in our letters dated May 7, 2014 and February 12, 2014 (attached). Our company supervision will give notice during the initial rig up of the Coiled Tubing BOPE for the initial BOPE test. Below is a list of the wells and the proposed coiled tubing work: SD-07 (PTD 211-050) Fill Cleanout+Ad Perfs SD-08 (PTD 213-051) Fill Cleanout+Blow well down SD-02A (PTD 213-153) Fill Cleanout KBU 11-08Z (PTD 214-044) Blow well down KBU 33-6X (PTD 203-183) Fill Cleanout If you need any additional information, you can contact me at 907-777-8333. Sincerely, HILCORP ALASKA, SCANNED SEP 2 2 2015 Paul Chan Senior Operations Engineer pc Attachments gcOPY i. I Permit#: 203-183 API#: 50-133-20529-00-00 KBU 33-6x II Prop. Des: FED A-028142 Pad 41-7 KB Elevation: 82'(21'AGL) 42' FSL 860' FEL nitron,. .,..ka-IAA: Latitude: ' ' Drive Pipe Longitude: Sec. 6, T4N, R11 W, S.M. 20" K-55 133 ppf PE Spud: 12/13/2003 Top Bottom M D 0' 139' TD: 1/2/2004TVD 0' 139' Rig Released: .••;[ .- i it ' Surface Casing 13-3/8" K-55 68 ppf BTC / ,,, Top Bottom - I MD 0' 1,512' ' 9 ' TVD 0' 1,512' �0' Cmt w/320 sks 4 TOG(est.)-???' t rr •: , 1 Intermediate Casing Excape System Details I): 9-518" L-80 47 ppf BTC );.: Top Bottom 0' 5,752' located from 6,055'-6,093' r.' PI TVD 0' 5,246' i Cmt w/705 sks Class G i Excape System Details 4 Production Tubing Onven ionaTmoduleSfr* Top�� - 3-112" L-80 9.3 ppf Mod EUE Module 1-no flapper valve Bottom and Ceramic flapper valves below 0' 8,362' each module as follows i a TVD 0' 7,800' Ifs Cmt w/1,150 sks of class G cmt Flappers MD(RKB): i�'; -lft Module 20 - 6.138' '"j Module 19 - 6,215' t" Module 18 - 6,298' �C Capillary String (Org.Install 07/03/08) Module 17 - 6.463' r, ) 3/8" 2205 Stainless Steel Module 16 - 6,562' _g) Top Bottom Module 15 - 6.700' r�� MD 0' 6,119' Module 14 - 6,743' TVD 0' 5,591' Module 13 - 6.800' I p' Replaced BHA. Set @ 3000 psi (4/20/12) Module 12 - 6,879' Module 11 - 7,103' ( Module 11 - 7,103' r 4 Beluga/Tyonek Excape Details Module 10 - 7,141' f- I kr 20 Excape modules placed Module 9 - 7,188 i� I q - control line fires top 9 modules Module 8 - 7,259 contol line fires middle Module 7 - 7,320 !-.4 8 modules Module 6 - 7,398' ;,• ,� -Green control line fires bottom Module 5 - 7,524' 1 e 3 modules Module 4 - 7,812' )j -Ceramic flapper valves below each Module 3 - 7,986' s' , Module 2 - 8121 ,• ? t; module Module 1 - NA L I - Perfs MD(RKB):r* �i � Module 1U - b,119'-6,129' G" Module 19 - 6,196'-6,206' Module 18 - 6,279'-6,289' z Module 17 - 6,444'-6,454' Module 16 - 6,543'-6,553' ill Module 15 - 6,681'-6,691' IP Ii? Module 14 - 6,724'-6,734' �j ��: Module 13 - 6,781'-6,791' Module 12 - 6,858'-6,868' Module 11 - 7,084'-7,094' ;r Module 10 - 7,122'-7,132' bl [ Module 9 - 7,169'-7,179' 4.. Module 8 - 7,240'-7,250' ) Module 7 - 7,301'-7,311' gl Module 6 - 7,379'-7,389' t Module 5 - 7,505'-7,515' Module 4 - 7,791' 7,801' << Module 3 - 7,967' 7,977' Indicated pinched In pipe 0 ? Module 1 - 8,197' 8'207' 7534'kb. 2-1/2"bailer got s:..; �, t l 0: @ 6127'kb.(4/19/12) *1 1 Tag fill '7,994''w/ w/Dynacoil(5/27/2010) •7,876'WI Dynacoil(3/2/2010) '7,915'w/Dynacoil(5/12/2009) TD PBTD 8,405' MD 8,324' MD 7,840' ND 7,763' ND Well Name& Number: Kenai Beluga Unit 33-6x Lease: Kenai Gas Field Municipality: Kenai Peninsula Borough State:- Alaska Country: USA Perforations (MD): 6,119' -8,207' Perf(TVD): 5,591' -7,647' Angle @ KOP & Depth: 1.3°/ 100 ft @ 1,500' Angle @ Perfs: 8° 5.50 Date Completed: 1/9/2004 Ground Level: (AMSL) RKB: 21' (AGL) Revised by: Mike Sulley Revision Date: 4/23/2012 Kenai Gas Field . H . .. Well: KBU 11-08Z SCHEMATIC Last Completed: FUTURE n;h:��r,�.ala��,t,►.c PTD: 214-044 CASING DETAIL RKB:MSL=22.2' Size Type Wt/Grade/Conn ID Top Btm i , 16" Conductor N/A Surf 130' L. 10-3/4' Surface 45.5/L-80/BTC 9.950 Surf 1,603' 7-5/8" Intermediate 29.7/L-80/BTC Mod 6.875 Surf 5,932' 16., 5" Production 18/L-80/DWC/C-HT 6.184 Surf 9,888') Y 4 , k. JEWELRY DETAIL No Depth Item 10-3/4" ( 3. 5,424' 5"Swell PackerPacker * i' 1 2 7,142' RA Marker with 5'Pup 11 r r, 3 7,473' RA Marker with 5'Pup 4 8,004' RA Marker with 5'Pup OPEN HOLE/CEMENT DETAIL 10-3/4"" 164BBL's of cement in 13.5"Hole.Returns to Surface `, 7-5/8" 22OBBL's of cement in 9-7/8"Hole.TOC Est.900' 5" 175BBL's of cement in 6-3/4"Hole. TOC Est.1,488' I: r /, 4 r.ill Ecl 1 1� TT pV 7-5/8 ,: 6 V. • i"T • i, `e •I. V. • i' 0 2 % , 3 '' 4 r. i 4 5 ,1 I TD=9,900'(MD)/9,508'(TVD) PBTD=9,800'(MD)/9,409'(TVD) Created Rv:TDF 5/28/2014 • Hilcorp Alaska, LLC Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpolnt Drive Suite 1400 Anchorage,AK 99503 Phone: 907/777-8412 Fax: 907/777-8310 May 7, 2014 Cathy Foerster, Chair Alaska. Oil and Gas Conservation Commission 333 W. 711' Avenue, Suite 100 Anchorage, AK 99501 Re: Coiled Tubing Work at Ninilchik Unit Dear Commissioner Foerster: Attached for your review includes proposed Coiled Tubing work for the Ninilchik Unit. Hilcorp AK is submitting a sundry application for the coiled tubing fill cleanouts with nitrogen along with additional perforations in the SD-07 well. We will also be performing CT FCO and/or blow downs on the other listed wells. Our company supervision will give notice during the initial rig up of the Coiled Tubing BOPE for the initial BOPE test. Below is a list of the wells and the proposed coiled tubing work: SD-07 (PTD 211-050) Fill Cleanout+Ad Perfs SD-08 (PTD 213-051) Fill Cleanout+Blow well down SD-02A (PTD 213-153) Fill Cleanout If you need any additional information, you can contact me at 907-777-8333. Sincerely, HILCORP ALASKA, LLC Paul Chan Operations Engineer pc • Attachments Hilcorp Alaska, LLC Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 1400 Anchorage,AK 99503 Phone: 907/777-8412 Fax: 907/777-8310 February 12, 2014 Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 Re: Coiled Tubing Work at Kenai Gas Field Dear Commissioner Foerster: Attached for your review includes proposed Coiled Tubing work for the Kenai Gas Field. The coiled tubing work involves fill cleanouts with nitrogen. This work typically does not require sundry approval; however we are including a sundry application for the initial work proposed on Kenai Gas KBU 23-7 (PTD 203-217) to perform a fill cleanout on the well. Our company supervision will give notice during the initial rig up of the Coiled Tubing BOPE for the initial BOPE test. Below is a list of the wells and the proposed coiled tubing work: KBU 23-7 (PTD 203-217) Fill Cleanout KBU 24-6RD (PTD 206-013) Fill Cleanout KBU 34-6 (PTD 207-064) Fill Cleanout KBU 42-6 (PTD 204-209) Fill Cleanout Sundries for wells which may require a velocity string will be submitted individually. The two identified velocity string wells at this time are KTU 32-7 (PTD 200-023) and CLU-RD1 (PTD 203-129). If you need any additional information, you may contact me at 907-777-8333. Sincerely, HILCORP ALASKA, LLC (fi.........." Paul Chan - Operations Enginee pc Attachments KBU 11-08Z Kenai Beluga Unit Kenai Borough, Alaska Apr 25, 2014 – May 8, 2014 Provided by: Approved by: Sarah Rittenhouse Compiled by: Ralph Winkelman S t e v e P i k e D y l a n M u l l e r Distribution Date: 6/11/2014 KBU 11-08Z 2 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT & CREW ................................................................................................3 1.1 Equipment Summary ......................................................................................................................3 1.2 Crew................................................................................................................................................3 2 GENERAL WELL DETAILS...................................................................................................................4 2.1 Well Objectives...............................................................................................................................4 2.2 Hole Data........................................................................................................................................5 2.3 Daily Activity Summary...................................................................................................................5 3 GEOLOGICAL DATA.............................................................................................................................8 3.1 Lithostratigraphy .............................................................................................................................8 3.2 Lithological Details..........................................................................................................................9 3.3 Sampling Program........................................................................................................................16 4 DRILLING DATA..................................................................................................................................17 4.1 Surveys.........................................................................................................................................17 4.2 Bit Record.....................................................................................................................................22 4.3 Mud Record ..................................................................................................................................23 4.4 Drilling Progress Chart..................................................................................................................24 5 DAILY REPORTS ................................................................................................................................25 Enclosures 2” / 100’ Formation Log (MD/TVD) 5” / 100’ Formation Log (MD/TVD) 2” / 100’ LWD Combo Log (MD/TVD) 2” / 100’ Drilling Dynamics Log (MD/TVD) 2” / 100’ Gas Ratio Log (MD/TVD) Final Data CD KBU 11-08Z 3 1 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary Parameter Equipment Type /Position Total Downtime Comments Computers – Surface Logging (5) Rigwatch Server, Rigwatch Remote DML, LWD WITS, Rigwatch Remote 0 hours Ditch gas QGM gas trap; Flame ionization total gas & chromatography. Hook Load / Weight on bit WITS from Pason 0 hours Mud Flow In Derived from Strokes/Minute and Pump Output 0hours Mud Flow Out WITS from Pason 0hours Pit Volumes, Pit Gain/Loss WITS from Pason 0hours Pump Pressure WITS from Pason 0 hours Pump Stroke Counters (2) WITS from Pason 0 hours Rate of Penetration Calculated from Pason 0 hours RPM WITS from Pason 0 hours Torque WITS from Pason 0 hours WITS To/ From Pason Rigwatch Remote (HP Compaq) 0 hours 1.2 Crew Mud Logging Unit Type: Arctic Mud Logging Unit Number: ML057 Mud Loggers Years1 Days2 Sample Catchers Years1 Days2 Technician Days2 Ralph Winkelman 23 4/25 Don Thibodeaux 37 5/2 Steve Pike 13 7 Deb Bomar 3 5/2 Dylan Muller 4 5/2 *1 Years experience as Mudlogger *2 Days at wellsite between rig up and rig down of logging unit. KBU 11-08Z 4 2 GENERAL WELL DETAILS 2.1 Well Objectives KBU 11-08Z is permitted as a grass roots Single Zone Development Gas well in the Kenai Beluga Gas Unit, Pad 41-07. The well is planned to be directionally drilled, with a minimum of hole or other problems, in an E/ SE direction to 8853’’MD/ 8585’TVD planned, 9900’MD/ 9508.6’TVD actual). The KBU 11-08Z will target the Mid-Lower Beluga and Upper Tyonek reserves on the eastern flank of the field. The base plan is a build and hold wellbore with a shallow kick off at 500’ and building up to a 15 deg tangent to TD. Operator: HILCORP ALASKA, LLC Well Name: KBU 11-08Z Field: Kenai Beluga Unit County: Kenai Borough State: Alaska Company Representatives: Mike Leslie, Bob Farrell, Doug Yessak, James Lott Location: Surface Coordinates 570' FNL, 814' FEL, Sec 7, T4N, R11W, SM, AK Ground ( Pad ) Elevation 65.7’ Rotary Table Elevation 83.86’ Classification: Development - Gas API #: 50-133-20629-00-00 Permit #: 214-044 Rig Name/Type: Saxon 147/ Land/ Double Spud Date April 22, 2014 Total Depth Date: May 9, 2014 Total Depth 9900’ MD / 9508.64’ TVD Primary Targets Middle and Lower Beluga and Upper Tyonek Gas Pools Primary Target Depths 6326’MD/ 5383’TVD, 7292’MD/ 6066’TVD, 8889’MD/ 7195’TVD Total Depth Formation: Tyonek Completion Status: Run, Set and Cement 5” Liner to surface. LWD-MWD Services. Halliburton/ Sperry Drilling Services Directional Drilling Halliburton/ Sperry Drilling Services Wireline Logging Services Schlumberger for production interval RFT’s. Drilling Fluids Service M.I. Swaco CANRIG Logging Geologists: Ralph Winkelman, Steve Pike, Dylan Muller CANRIG Sample Catchers: Donald Thibodeaux, Debbie Bomar KBU 11-08Z 5 2.2 Hole Data Maximum Depth Shoe Depth Hole Section MD (ft) TVD (ft) TD Formation Mud Weight (ppg) Dev. (oinc) Casing Diam. MD (ft) TVD (ft) FIT (ppg) 13 1/2” 1613’ 1553.0’ Sterling 9.2 22.32 10.75” 1603’ 1543.8’ 12.0 9 7/8” 5946’ 5580.1’ Beluga 9.4 21.21 7 5/8” 5932’ 5567.1’ 13.5 6 3/4” 9900’ 9508.6’ Tyonek 5” 9898’ 9508’ 2.3 Daily Activity Summary 4/25/2014: Rig up Canrig. Rig up BOP. 4/26/2014: Finish Canrig rig up. Test BOP. Pick up BHA and singles. Cut and slip drill line. Drill out float equipment 4/27/2014: Drill and slide ahead from 1613' MD to 2884' MD. CBU and conduct wiper trip to 1399' MD. Conduct rig maintenance activity. TIH to 2884' MD, and continue to drill ahead to 3337' MD at time of report. Max gas for the past 24 hours was 93u, with an overall average of 48u. 4/28/2014: Drill and slide ahead from 3338' MD to 4373' MD. CBU, and pump high vis sweep. POOH for wiper trip to 1600' MD. Service top drive, draw works and blocks. TIH to 4373' MD. CBU and pump hi vis sweep, wiper gas 383u. Drill and slide ahead from 4373' MD to 4779' MD. Lost returns, so gas readings dropped way off. Pulled 2 stands, regained circulation. Pumped LCM pill to bottom, lost circulation again. Max gas for the past 24 hours was 1120u. No connection gases were observed. 4/29/2014: Drill and slide ahead from 4780' MD to 5289' MD. CBU, change shaker screens, and transfer mud to active tanks. Drill ahead from 5289' MD to 5946' MD, 5580' TVD for intermediate casing depth. CBU and collected bottoms up sample. Start wiper trip. Maximum gas for this 24 hour period was 1042u @ 5232' MD. No connection gases were observed. 4/30/2014: POOH for wiper trip from 5946' MD to 5050' MD. BROOH from 5050' MD to 4667' MD. BROOH from 4667' MD to 4200'MD. TIH from 4200' MD to 4550' MD. Open well commander. Pump 30 bbl LCM pill. Pull six stands. CBU. Close well commander. POOH to shoe. Service rig. TIH to 5823' MD at time of report. 5/1/2014: Wash and ream to bottom. TIH from 5823' MD to 5945' MD. Circulate and pump pill. Open well commander, pumped 62 bbl pill. POOH to BHA. Closed well commander. Flushed through BHA with water. Lay down BHA. Change upper variables to casing RA Ms. Pulled wear bushing, Dummy run casing hanger. Rig up test equipment. Test casing RAMs. R/U Tesco CRT and running equipment. PU 7.625" shoe track and first 3 joints. RIH with casing. 5/2/2014: Continue RIH w/ 7/5/8” casing. Began losing returns @ ~ 4900’. Wash down landing joint, land @ 5932’. Rig up cement head and pump cement as per program. Change out rams. Test BOP. 5/3/2014: Install and test new HCR and choke line. Pick up drilling BHA and RIH to 789'. Slip and Cut drilling line. Continue to RIH with singles. Tag bottom and proceed to test casing. KBU 11-08Z 6 5/4/2014: Tag float collar at 5844'. Drill out cement/shoe. Drill 20' of new formation to 5966'. Circulate 10.3 ppg in/out. Perform FIT to 13.5 ppg EMW. Drilling ahead. Sliding to drop angle from 21 to 5 degrees. 5/5/2014: Drill to 7202'. CBU. TOH to the shoe. Service rig. RIH. Pump sweep around bottom. Drilling ahead - WOB 3; GPM 270; & SPP ±2440; continue drill ahead. 5/6/2014: Drilling ahead to 8504'. Weight up to 11.1 ppg due to high gas. Short trip back to 7000'. RIH to 8507 and continue to slide and rotate ahead to 8567'. 5/7/2014: Drilling to 8882'. High gas - mud over the rotary table. Well shut in. Circulate through the choke and gas buster. Weight up to 11.3 ppg. Open well and drill ahead to 8940'. High gas. Weight up to 11.5 ppg. Continue to drill ahead to marker point, ±9375' - for short trip. Currently POOH to slated 7800', at report time. 5/8/2014: TOH to 9373'. Service rig. RIH. Pick up 12 singles. Break circulation at 9312'. High gas - 2700 units. Close the bag and circulate through the choke and gas buster to circulate out gas. Open bag - well static. Wash down the last stand. Drilling ahead -TD, 9900'. CBU and perform test to determine density increase. Currently circulating while weighting up mud density to 11.7ppg. 5/9/2014: Weight up to 11.7 ppg. Service rig. TOH. Tight at 9500' and 9290'. Continue to TOH to shoe. Service rig. RIH. Wash down last stand. CBU. High gas - 2600 units. Shut in well and circulate through the choke and gas buster. Circulate out gas. Open up well. Circulate at 6 bpm and weight up to 12.1 ppg. POOH to surface at report time. 5/10/2014: Continue to TOH. Pump out from 9446' to 7800'. CBU - high gas 105 units. POOH on elevators from 7800' to the shoe. CBU. Flow check. Pump slug and continue out of hole. Lay down BHA. Clear & clean floor. Test BOP's. R/u SCHLUMBERGER, and run in on wireline with the RFT log-tool, on first run (Pressure measurement). Tool got to bottom successfully. 5/11/2014: Obtained 21 pressure samples with the RFT tool. POOH to surface due to tool problem. RIH with RFT. Tool became stuck at 9645'. Wireline is thought to be differentially stuck around 6700'. Strip wireline over drill pipe and RIH with drill pipe to retrieve RFT tool. Continue to RIH at report time. 5/12/2014: RIH stripping over wireline to 9604'. Circulated at 9530' to establish circulation. Hooked fish. Verified tool in overshot. Cut wireline and tie back into spool. TOH with fish. 5/13/2014: RIH to 9604' with drill pipe. Recover fish. Attempt to release from wireline - couldn't release. Drill pipe differentially stuck while trying to TOH with fish. CBU. 1400+ units of gas. Work drill pipe free. TOH with fish - cutting wireline every stand. 5/14/2014: TOH w/Line Fish on DP and L/d same. R/d SCHLUMBERGER. P/u and M/u Clean out assembly as per Prognosis. RIH same as HILCORP’s procedure - filling string every 1000' and breaking circulation. F/check well - static. Continue to RIH at report time. 5/15/2014: Tag bottom with clean-out run assembly; break circulation w/annuli content to minimize gas in flux reading. Sweep wellbore w/300+ High viscosity marker sweep to unload the annuli -see sweep tracker for result. POOH to ~7500' and spot Lo-Torque Pill; continue TOOH t/3172'; while L/d DP, and slugged string. TOOH wellbore string t/surface; L/d DP. RIH DP on derrick fingers t/4294'. TOH t/4140' and slugged string. Continued POOH; Lay down DP t/3958' at report time. KBU 11-08Z 7 5/16/2014: Finish RIH to 4714'. POOH while laying down DP from 4714 to bit. Service /repair rig. Start running 5" casing. At 3080' at report time 5/17/2014: RIH 5-in Production string to bottom and cement same as per HILCORP's procedure. Displaced string content to filtered 6% - KCl brine. R/d WEATHERFORD, and B.J Services. Currently flushing out SAXON's well control equipment. KBU 11-08Z 8 3 GEOLOGICAL DATA 3.1 Lithostratigraphy Prognosed and observed tops given by Hilcorp geologist Sarah Rittenhouse. Observed tops determined after evaluation of Schlumberger Quad-Combo LWD logs. PROGNOSED OBSERVED MD TVD SSTVD MD TVD SSTVD FORMATION (ft) (ft) (ft) (ft) (ft) (ft) Sterling 3,789 3,638 (3,551) 3,819 3,604 -3,538 Sterling 5.2 4,452 4,236 (4,149) 4,458 4,198 -4,132 Upper Beluga 5,392 4,723 (4,636) 5,002 4,704 -4,638 Middle Beluga 6,326 5,383 (5,296) 5,653 5,308 -5,242 Lower Beluga 7,292 6,066 (5,979) 6,421 6,039 -5,973 Upper Tyonek 7,550 7,195 (7,108) 7,547 7,162 -7,096 84-6 Sand 8,785 8,396 (8,309) 8,816 8,427 -8,361 86-2 Sand 8,956 8,567 (8,480) 8,956 8,567 -8,501 D-1 Sand 9,088 8,697 (8,610) 9,089 8,698 -8,632 D-2 Sand 9,230 8,839 (8,752) 9,230 8,839 -8,773 D-3 Sand 9,485 9,092 (9,005) 9,475 9,084 -9,018 D-4 Sand 9,717 9,324 (9,237) 9,739 9,348 -9,282 D-6 Sand 9,850 9,456 (9,369) 9,855 9,463 -9,397 KBU 11-08Z 9 3.2 Lithological Details Full service mudlogging began at 5946’’ MD /5580.1’ TVD. All the sample lithology descriptions provided by Canrig began after the intermediate casing shoe track. The logged well included the Beluga and Tyonek Formations, whose lithology of largely volcanic ash-derived fluvial sediments included: tuffaceous claystone, tuffaceous siltstone, sand/sandstone, volcanic ash, coal and various other minor to trace thinly bedded lithologies. The wellbore was drilled to 9900’MD / 9508.64’ TVD / -9424.84’ TVDSS. Tuffaceous Siltstone: (5932' - 6050') = Medium dark gray to medium gray; Sectile to crumbly tenacity; blocky to earthy fracture; massive to tabular cutting habit; earthy and rare greasy luster; abrasive to smooth texture; structure mostly indeterminable, but massive to thick when possible; abundant sand grain and loose carbonaceous material inclusions; occasional green staining. Sand (6050' - 6140') = medium dark gray to medium gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, greenish gray and trace light green; very fine lower to coarse upper, dominantly fine upper to medium lower; angular to subangular; poor to fair sorting; unconsolidated with trace tuff supported sandstone; medium gray to greenish gray; very fragile to pulverulent; fine to medium; moderate to very calcareous; trace black carbonaceous material/ coal; present as thin beds in dominantly claystone/ siltstone formation. Tuffaceous Claystone/ Tuffaceous Siltstone (6140' - 6210') = medium light to light gray with light brownish gray secondary hues; very soft to slightly firm; sticky; shapeless to trace pdc bit action shaped cuttings; earthy to waxy to greasy luster; clayey to silty to slightly gritty texture; moderate to very soluble and expansive; poor cohesiveness; fair to good adhesiveness; slight to moderately calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions in firmer pieces. Tuffaceous Siltstone/ Tuffaceous Claystone (6210' - 6270') = medium light to light gray with light yellowish gray and light brownish gray secondary hues; soft shapeless to pdc bit action shaped cuttings; silty to clayey texture; dull to greasy luster; hydrophilic; moderate to very soluble and expansive; poor cohesiveness; fair to good adhesiveness; slight to moderately calcareous; siltstone commonly grades between silty sandstone and sandy siltstone. Carbonaceous Shale/ Coal (6270'-6320') = black with dark brown and brownish black secondary hues; very firm to moderately hard; brittle at times; massive; blocky to splintery; platy to flaky; earthy luster; smooth to gritty and silt texture planar fracture dominant; no outgassing. Tuffaceous Claystone/ Tuffaceous Siltstone (6320' - 6380') = medium light to light gray with light brownish gray secondary hues; very soft to slightly firm; sticky; shapeless to trace pdc bit action shaped cuttings; earthy to waxy to greasy luster; clayey to silty to slightly gritty texture; moderate to very soluble and expansive; poor cohesiveness; fair to good adhesiveness; slight to moderately calcareous; trace dark brown to black carbonaceous material/ coal; present as very thin beds in dominantly claystone/ siltstone formation. Sandstone/ Sand (6420' - 6460') = medium light grey to medium dark grey; upper very fine to lower medium grains; well to moderately well sorted; mostly well rounded, secondary grading to subangular; very spherical to moderate spherical, secondary low; well polished and occasional frosting; 85% quartz, remainder mostly carbonaceous siltstone of similar grain size and features; non calcareous; mostly loose sand grains. KBU 11-08Z 10 Sandstone/ Sand (6460' - 6600') = medium light grey to medium dark grey; upper very fine to upper medium grains, occasional upper coarse; moderately sorted; well rounded to angular, larger grains are more angular - finer grains more rounded; very high to low sphericity; 50% quartz grains, some frosting, some polishing; 50% siltstone with micro laminations of carbonaceous material, some mildly crenulated and abundant carbonaceous material inclusions; mostly unconsolidated, clasts are tuff matrix supported and very friable and vary from arenaceous tuffaceous siltstone to argillaceous tuffaceous sandstone; mildly calcareous; trace green staining. Tuffaceous Siltstone (6460' - 6600') = medium dark grey to medium light grey; crumbly to sectile tenacity, occasionally tough or brittle; blocky to irregular fracture, some amorphic because of annular hydration and increasing amounts with depth; blocky to nodular cutting habit when not amorphic; earthy to slightly greasy/ waxy luster; gritty to smooth texture, varying inclusions of sand grains and loose carbonaceous material; thin to massive structure, occasional micro-laminae of carbonaceous shale; rare clasts with heavy inclusions of carbonaceous material off gassing. Carbonaceous Shale/ Coal (6660' - 6700') = brownish black to grayish black; initially microlamina in tuffaceous siltstone, some crenulated and some planar, increasing in thickness and abundance to 6880 where cuttings were entirely carbonaceous shale with perhaps one vein of solid lignitic coal; tough to dense tenacity; irregular and trace conchoidal fracture; massive to tabular cutting habit; earthy and slightly metallic / gemlike luster; silty to clayey texture; laminae to massive structure; mild to moderate off gassing; Tuffaceous Sandstone/ Siltstone (6600' - 6840') = very argillaceous tuffaceous sandstone grading occasionally to vary arenaceous tuffaceous siltstone; medium dark grey to medium light grey; lower very fine to lower medium sand grains; well sorted; well to moderately rounded, occasional subangular; very high to moderate sphericity; tuff matrix supported when still intact; very friable; contains abundant siltstone clasts of slightly larger size than quartz grains, and occasional to abundant carbonaceous material; non to mildly calcareous. Carbonaceous Siltstone/ Shale (6810' - 6965') = medium grey to dark grey, individual pieces brownish black and grayish black; tough to dense tenacity; irregular to slightly blocky fracture, some mildly planar; massive cutting habit, often obscured by amorphic samples due to annular hydration; earthy to vitreous and metallic luster; silty and sometimes granular texture; laminae to massive structure; varying from micro laminae less than .5 mm (some planar, some trace crenulated) to abundant inclusions of clasts in tuffaceous siltstone, and increasing to whole cuttings at high gas peaks accompanied by more developed lignitic coals; trace visible off gassing. Tuffaceous Siltstone (6840' - 7000') = medium grey to medium dark grey; tough to crumbly, occasional sectile tenacity; irregular and occasional blocky fracture; massive to nodular cutting habit; earthy to gemlike and slightly vitreous luster; silty to abrasive texture; massive and occasional laminae structure; heavily imbedded with loose carbonaceous material and micro laminae of same with some off gassing; more distinction between siltstones and sandstones with depth. Tuffaceous Shale/ Claystone (7015' - 7100') = whole samples medium grey to medium dark grey, cuttings greenish grey; crumbly to sectile tenacity; blocky to earthy fracture; tabular to nodular cuttings habit; waxy to earthy luster; clayey to slightly silty texture; massive structure; no inclusion of carbonaceous material (only in siltstones); non calcareous. Sand (7020' - 7120') = medium grey to medium dark grey; lower very fine to upper fine grains, trace up and lower medium; very well sorted; very well to moderate rounding, some very angular that appear freshly fractured from drilling; high to moderate sphericity with some contact pressure deformation; mostly polished, some frosted; 70% quartz, some pale yellowish orange staining; 30% siltstone and loose carbonaceous material. KBU 11-08Z 11 Tuffaceous Siltstone (7000' - 7180') = medium grey to medium dark grey; pulverulent and malleable, occasionally tough to crumbly tenacity; amorphic, grade to irregular to blocky fracture; massive to nodular cutting habit when visible; earthy to luster; silty to granular texture; massive structure, trace laminae of carbonaceous, occasionally crenulated; very arenaceous - lower very fine grain sand inclusions. Sand/ Sandstone/ Tuffaceous Sandstone (7180' - 7260') = medium to medium light gray overall with a weak salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray and black; very fine lower to medium upper, dominantly fine; angular to subangular; fair to good sorting; dominantly unconsolidated with trace medium light gray sandstone; moderately hard to brittle; very fine; weak calcareous cement; common tuff supported grains; very soft. Coal/ Carbonaceous Shale (7260'-7320') = black with dark brown and brownish black secondary hues; very firm to hard and brittle; blocky to platy; planar fracture dominant with trace conchoidal and birdeye fracture; massive to platy and flaky vitreous to earthy luster; smooth to slightly silty texture; trace to common outgassing bubbles present. Tuffaceous Claystone/ Tuffaceous Siltstone (7320' - 7380') = medium light to light gray with light brown to light brownish gray secondary hues; very soft to slightly firm; sticky; shapeless globular to pdc bit action shaped cuttings; silty to clayey texture; dull, earthy luster; hydrophilic; moderate to very soluble and expansive; poor cohesiveness; fair to good adhesiveness; non calcareous; trace thin coal/carbonaceous shale beds. Sand (7380' - 7440') = medium gray overall with weak salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black and greenish gray; very fine upper to coarse lower, dominantly fine upper to medium lower; angular to subangular; unconsolidated; poor to fair sorting; non calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (7440' - 7510') = medium light to light gray with light olive gray and light brown secondary hues; very soft to slightly firm; sticky; shapeless, globular to pdc bit action shaped cuttings; silty to clayey texture; dull, earthy luster; hydrophilic; moderate to very soluble and expansive; poor cohesiveness; fair to good adhesiveness; non calcareous; trace thin coal/carbonaceous shale beds; trace dark brown to black microthin carbonaceous laminations and inclusions. Carbonaceous Shale/ Coal (7510'-7550') = black with brownish black secondary hues; hard; platy to flaky; massive; planar fracture dominant with trace conchoidal and birdeye fracture; vitreous luster; smooth texture; trace to common out gassing bubbles present. Tuffaceous Siltstone (7545' - 7645') = medium dark grey to medium grey, individual grains also brownish grey and grayish black; amorphic and sticky hydrophilic globules, indeterminable tenacity, fracture, cuttings habit, and structure; earthy luster; clayey to granular texture; abundant loose carbonaceous material / coal inclusions and loose sand grains: lower very fine to upper fine, well rounded, low to high sphericity; mild to moderately calcareous. Tuffaceous Sandstone (7580' - 7700') = whole sample medium light grey to medium dark grey; upper very fine to lower fine grains; very well sorted; well rounded; very low to moderate sphericity; some contact deformation; tuff matrix supported increasing with depth; easily friable, some slightly firm; dominant quartz, secondary lithic clasts and intermittent abundant carbonaceous material; moderate to very calcareous. Tuffaceous Shale/ Shale (7685' - 7760') = medium light grey to light grey; dense and slightly elastic; blocky fracture, some irregular; tabular cutting habit; earthy to waxy/ greasy luster, some minor sparkling; clayey to silty texture; massive to thick structure; non calcareous; contact with tuffaceous sandstone and siltstone is distinct and not gradual. KBU 11-08Z 12 Coal (7700' - 7730') = black; brittle to tough tenacity; blocky to splintery fracture; massive cutting habit; vitreous luster; smooth texture; grading with carbonaceous shale. Tuffaceous Siltstone (7730' - 7860') = medium light grey to medium grey; sectile to dense tenacity; blocky to irregular fracture, sometimes earthy; massive to tabular cuttings habit; earthy luster; silty to gritty texture; massive structure; mild to non calcareous; indistinguishable from tuffaceous sandstone, but occasionally contains varying abundance of loose sand grains and carbonaceous material. Carbonaceous Shale/ Siltstone (7850' - 7885') = black to grayish black to brownish black; tough and sometimes brittle and crumbly tenacity; irregular to blocky fracture; massive and occasionally platy cuttings habit; vitreous to metallic to earthy luster; smooth to silty texture; massive and sometimes thin to thick structure; mild to moderate off gassing; mature coal sometimes interbedded in thin structure. Tuffaceous Sandstone (7925' - 7990') = medium light grey to medium dark grey; lower very fine to upper fine grains, trace lower medium; very well sorted; well rounded to sub rounded, trace angular; low to moderate sphericity, contact deformations; frosting, and some pitting; tuff matrix supported; mostly very friable, some slightly firm; 85% quartz, translucent, some pale yellowish orange to light brown staining; 15% lithic clasts and trace carbonaceous material; some thin bedding visible with micro laminae of coal / very carbonaceous shales which are sometimes planar and intermittently very crenulated; grains are non calcareous. Tuffaceous Siltstone (7870' - 8070') = medium light grey to medium dark grey; dense and sometimes sectile and some grading to crumbly tenacity when sand content increases; irregular to blocky fracture; tabular to massive cutting habit; earthy to dull or greasy luster; silty to granular texture; massive to laminae structure; interbedded with micro laminae of very carbonaceous shale / coal, sometime planar and sometimes crenulated; mild off gassing with increasing carbonaceous content; intermittently very arenaceous, lower very fine to lower fine loose sand grains, well rounded and some contact deformation. Tuffaceous Sandstone (8090' - 8170') = medium light grey to medium dark grey; lower very fine to upper fine grains, trace lower to upper medium; very well sorted; very well rounded to moderate rounding, trace subangular; very low to moderate sphericity, larger grains are moderate to highly spherical; smaller grains show pressure deformation; very friable and some slightly firm; dominate tuff supported, some grading to silt matrix supported; mild to moderately calcareous; intermittent micro laminae of coal/ very carbonaceous material, some which are crenulated; intermittent abundant loose carbonaceous material with mild off gassing. Coal/ Carbonaceous Shale (8170' - 8240') = black, brownish black; tough to dense tenacity; blocky to slightly splintery fracture, some conchoidal; flaky to massive and tabular cutting habit; resinous to waxy to vitreous luster; smooth to silty texture; laminae to massive structure; micro laminae interbedding with tuffaceous sandstones / siltstones; mild to moderate off gassing. Sand/ Tuffaceous Sandstone (8240'-8320') = light to very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace medium to dark gray, greenish gray and yellowish orange; very fine lower to medium lower, dominantly fine; angular to subangular with trace subrounded; moderately well sorted; very loosely consolidated with grayish white to bluish white ashy tuff supporting matrix; very soft and pulverulent; non calcareous. Tuffaceous Sandstone (8320' - 8380') = very light gray with abundant secondary hues of light brown to light yellowish gray, pinkish gray and light greenish gray; loose grains dominantly clear to translucent quartz and volcanic glass; very fine lower to fine upper; angular to subangular; well sorted; very loosely supported to fragile and pulverulent; irregular to pdc bit action shaped cuttings; non to slightly calcareous. KBU 11-08Z 13 Sand/ Tuffaceous Sandstone (8380'-8440') = light to very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace medium to dark gray, greenish gray and yellowish orange; very fine lower to medium lower, dominantly fine; angular to subangular; moderate to good sorting; very loosely supported with grayish white ash matrix; very fragile; non to slightly calcareous. Coal (8440' - 8470') = black with brownish black secondary hues; hard to brittle; blocky to platy; massive; planar fracture dominant with common conchoidal and birdeye fracture present; earthy to vitreous luster; smooth texture ;vigorous and persistent outgassing observed. Tuffaceous Siltstone (8500' - 8665') = medium dark grey to medium light grey, some greenish black hues; dense to crumbly tenacity, some sectile; slightly firm to hard; blocky to planar to irregular fracture; tabular to nodular and some massive cutting habit; earthy luster, some sparkling; silty to granular texture varying with sand content; thin bed to massive structure; very pure silt grading with very arenaceous and some layers with loose carbonaceous material imbedded; non to mildly calcareous. Tuffaceous Sandstone (8590' - 8665') = medium dark grey to medium light grey, light olive grey to light brownish grey hues; lower very fine to upper fine grains; very well sorted; very well rounded to sub rounded, occasional subangular; very highly spherical to moderately spherical; firm to slightly hard, some easily friable; tuff matrix supported; 80+% quartz, remainder lithic clasts and carbonaceous material and coal; occasional to frequent microlamina of coals / carbonaceous shales; moderate to highly calcareous; sometimes slightly argillaceous. Tuffaceous Siltstone (8565' - 8665') = medium dark grey to dark grey; dense to crumbly tenacity depending on sand content; tabular to irregular and sometimes planar fracture; massive to tabular cutting habit, sometimes platy; earthy to dull luster; silty to granular texture; massive to thin bed structure; varying from very arenaceous to very argillaceous, some layers are distinct, others gradual; moderate to very calcareous; Carbonaceous Shale (8750' - 8850') = brownish black to grayish black, slight to olive black; hard to firm; dense to sectile tenacity; blocky and planar fracture, sometimes irregular; platy to flaky to massive cutting habit; earth to vitreous luster; silty to matte texture; laminae and sometimes thin bed structure; varying degrees of interbedding with coal and varying degrees carbonaceous content which are crenulated to planar; moderate to mild off gassing; sometimes arenaceous. Tuffaceous Sandstone (8840' – 8880’) = medium light grey to medium grey; dominant lower very fine to upper fine grains, secondary lower and upper medium; well to moderately well sorted; well rounded to rounded, secondary sub rounded to sub angular; very highly spherical to low sphericity; primary tuff matrix supported, secondary silt matrix; interbedding of microlamina of silt and some carbonaceous shale/coal non to very mildly calcareous; primary quartz grains; secondary lithic clasts and volcanic glass. Tuffaceous Claystone/ Tuffaceous Siltstone (8880'-8940') = medium light gray with light olive gray secondary hues to light brownish gray; irregular shaped cuttings; massive; silty to clayey texture; earthy to waxy luster; hydrophilic; fair cohesiveness; poor adhesiveness; non calcareous. Sandstone ( 8940' - 9020') = light gray to light greenish gray overall with a weak salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium greenish gray, gray and black; very fine lower to trace pebble fragment dominantly very fine; angular to trace subrounded, dominantly subangular; very loosely consolidated; fragile; soft; irregular to pdc bit action shaped cutting sand stone commonly grades between sandy siltstone and silty sandstone. Tuffaceous Siltstone/ Tuffaceous Claystone (9020' - 9065') = light brownish gray with brownish gray secondary hues; soft; fragile; irregular shaped with pdc bit action shaped cuttings common; silty to clayey; dull, earthy luster; non calcareous; light olive gray siltstone commonly grades between silty sandstone and sandy siltstone. KBU 11-08Z 14 Coal (9065' - 9085') = black with dark brown to brownish black secondary hues; firm to hard and brittle; platy to flaky planar fracture dominant with conchoidal and birdeye fracture common; earthy to vitreous luster; smooth to silty texture trace to common outgassing bubbles. Tuffaceous Sandstone (9085' - 9210') = very light gray with bluish white, very light greenish gray and pinkish gray secondary hues; very soft and fragile; irregular and pdc bit action shaped cuttings massive; frosted to sparkling luster; mottled to gritty texture; loose grains dominantly clear to translucent quartz and volcanic glass and abundant multicolored liths, gray, greenish gray, black pink and dusky red; very fine to medium supported grains; angular to subangular; slight to moderately calcareous; trace visible glass shards. Coal/ Carbonaceous Shale (9210'-9240') = black with very dark brown to brownish black secondary hues; hard and brittle; platy to flaky; massive; earthy to vitreous luster; smooth to silty texture; outgassing present. Tuffaceous Siltstone (9225' - 9310') = medium grey to medium dark grey, interspersed cuttings of white tuff; dense to crumbly tenacity; soft to firm; moderate induration; blocky to planar fracture; tabular cutting habit, some massive; earthy to dull luster; silty to gritty texture; thin to thick structure, some massive; moderate to very arenaceous; trace to abundant tuff; trace to moderate amount of micro-fragments of loose carbonaceous shale / coal; non calcareous. Tuffaceous Sandstone (9230' - 9370') = medium light grey to medium dark grey, interspersed cuttings of white tuff; lower very fine to upper medium grains; poor to moderate sorting; smaller grains well to subrounded, larger grains subangular to subrounded; dominantly easily friable, trace firm to slightly hard, abundant loose sand grains; tuff matrix supported grading with intermittent silt matrix supported; micro laminae of coal / carbonaceous shale, both planar and crenulated; pressure deformation in smaller grains; dominant quartz grains, secondary lithic clasts and loose coal, non to mildly calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (9370' - 9440') = light brownish gray to light olive gray; irregular to pdc bit action shaped cuttings; soft; fragile; silty to clayey texture; dull to earthy luster; hydrophilic; moderately soluble and expansive; non calcareous. Coal/ Carbonaceous Shale (9440'-9480') = black with brownish black secondary hues hard to brittle; blocky to platy and flaky; earthy to vitreous luster; smooth to silty texture; sub bituminous to bituminous; scattered, weak outgassing bubbles observed. Tuffaceous Sandstone (9480' - 9550') = very light gray with bluish white, very light greenish gray and yellowish gray secondary hues; very soft and fragile; irregular and pdc bit action shaped cuttings; frosted to sparkling luster; mottled to gritty texture; loose grains dominantly clear to translucent quartz and volcanic glass and abundant multicolored liths, gray, greenish gray, black pink and dusky red; very fine to medium supported grains; angular to subrounded, dominantly subangular; moderate to very calcareous; common visible glass shards. Sand/ Tuffaceous Sandstone (9550'-9620') = bluish white to very light gray overall with pinkish gray and greenish gray secondary hues, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray to black and greenish gray; very fine lower to coarse upper, dominantly fine upper to medium lower; angular to trace subrounded, dominantly subangular; poorly sorted; very loosely supported with very ashy matrix; moderate to very calcareous very soft and fragile; abundant shards. Tuffaceous Siltstone/ Tuffaceous Claystone (9620' - 9680') = light gray to light brownish gray; soft and fragile; irregular with pdc bit action shaped cuttings; silty to clayey; earthy to sparkling luster; moderately soluble and expansive; poor adhesiveness; fair cohesiveness; trace dark brown to black microthin carbonaceous laminations and inclusions; non to slightly calcareous. KBU 11-08Z 15 Tuffaceous Sandstone (9680' - 9750') = very light gray with bluish white, very light greenish gray and yellowish gray secondary hues; very soft and fragile; irregular and pdc bit action shaped cuttings; frosted to sparkling luster; mottled to gritty texture; loose grains dominantly clear to translucent quartz and volcanic glass and abundant multicolored liths, gray, greenish gray, black pink; very fine to coarse upper, dominantly fine upper to medium upper; angular to subangular; poor to fair sorting; very loosely supported in ashy matrix. Tuffaceous Claystone/ Tuffaceous Siltstone (9750' - 9800') = light brownish gray to light olive gray; irregular to pdc bit action shaped cuttings; soft; fragile; silty to clayey texture; dull to earthy luster; hydrophilic; moderately soluble and expansive; non calcareous; siltstone commonly grades between silty sandstone and sandy siltstone. Tuffaceous Sandstone (9750' - 9900') = overall very light grey to medium grey; individual same plus staining of light blue and light blue green and also white tuff; lower very fine to upper medium grains, trace conglomerate; smaller grains well to sub rounded, larger grains subrounded to subangular; very highly to moderately spherical, occasional low sphericity; easily friable to slightly firm; interspersed thin bedding of tuff matrix supported alternating with grain supported with tuff to silt matrix; dominant quartz, white, translucent, light blue to light blue green staining; secondary lithic clasts and varying trace to abundant carbonaceous shale pieces < 1mm; non to trace calcareous. KBU 11-08Z 16 3.3 Sampling Program The sampling program specified by the Geologist called for the collection of three sets of Washed and Dried Reference Samples beginning at 5946’ MD. The resulting set, interval, and distribution are shown below. Sets Type and Purpose Interval Frequency Distribution 1 Washed and Dried 5946’ – 9900’ 20’ Landon Ellison Hilcorp Alaska LLC 3800 Center Point Drive, Suite 100 Anchorage, AK 99508 2 Washed and Dried 5946’ – 9900’ 20’ Landon Ellison Hilcorp Alaska LLC 3800 Center Point Drive, Suite 100 Anchorage, AK 99508 3 Washed and Dried 5946’ – 9900’ 20’ Landon Ellison Hilcorp Alaska LLC 3800 Center Point Drive, Suite 100 Anchorage, AK 99508 KBU 11-08Z 17 4 DRILLING DATA 4.1 Surveys Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 18.10 0.00 0.00 18.10 0.00 0.00 0.00 0.00 202.00 0.43 343.04 202.00 0.66 0.20 -0.47 0.23 264.00 1.30 89.95 263.99 0.88 0.43 0.00 2.39 325.00 2.65 110.52 324.96 0.39 2.45 2.03 2.47 386.00 3.62 112.34 385.86 -0.84 5.55 5.35 1.59 452.00 4.77 116.08 451.69 -2.83 9.94 10.18 1.79 514.00 5.83 119.06 513.42 -5.50 15.01 15.90 1.77 576.00 7.13 117.77 575.02 -8.82 21.17 22.89 2.11 636.00 9.36 119.47 634.40 -12.96 28.71 31.48 3.74 698.00 11.61 118.78 695.36 -18.44 38.57 42.75 3.63 759.00 13.37 118.49 754.91 -24.76 50.15 55.93 2.89 821.00 15.18 119.35 815.00 -32.16 63.52 71.19 2.94 882.00 17.39 115.92 873.55 -40.06 78.69 88.28 3.95 944.00 19.04 117.07 932.44 -48.71 96.03 107.66 2.72 1006.00 21.15 117.63 990.66 -58.50 114.94 128.96 3.42 1067.00 22.02 117.38 1047.38 -68.87 134.85 151.39 1.43 1128.00 22.10 116.70 1103.92 -79.28 115.25 174.29 0.44 1191.00 22.20 119.21 1162.27 -90.41 176.23 198.03 1.51 1254.00 22.31 116.09 1220.58 -101.48 197.36 221.87 1.89 1316.00 22.07 115.07 1277.99 -111.59 218.48 245.28 0.74 1378.00 22.11 115.43 1335.44 -121.53 239.56 268.59 0.23 1440.00 22.10 114.07 1392.88 -131.30 260.74 291.91 0.83 1502.00 22.15 114.56 1450.32 -140.91 282.02 315.25 0.31 1573.00 22.32 115.19 1516.04 -152.21 306.40 342.11 0.41 1666.82 21.65 115.39 1603.04 -167.22 338.15 377.23 0.72 1728.30 21.28 115.28 1660.25 -176.84 358.49 399.73 0.61 1790.04 20.27 115.30 1717.98 -186.20 378.29 421.63 1.64 1851.38 19.72 114.52 1775.62 -195.04 397.31 442.60 1.00 1914.05 20.52 116.28 1834.46 -204.29 416.78 464.15 1.60 1976.01 21.24 117.34 1892.36 -214.25 436.48 486.23 1.31 2037.89 21.12 117.65 1950.06 -224.57 456.32 508.58 0.27 2098.89 20.95 117.38 2006.99 -234.69 475.73 530.47 0.32 KBU 11-08Z 18 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 2161.39 21.62 116.03 2065.23 -244.88 496.00 553.15 1.33 2225.04 21.55 115.84 2124.41 -255.12 517.06 576.57 0.16 2286.58 21.20 115.68 2181.72 -264.87 537.26 599.00 0.58 2348.99 22.07 115.70 2239.73 -274.84 558.00 622.01 1.39 2410.32 22.50 116.20 2296.48 -285.02 578.91 645.26 0.77 2472.23 21.88 116.52 2353.81 -295.40 599.86 668.65 1.02 2532.51 21.69 116.35 2411.64 -305.69 620.56 691.76 0.32 2596.30 21.32 116.27 2469.13 -315.73 640.86 714.41 0.60 2657.99 21.16 116.12 2526.63 -325.60 660.91 736.76 0.27 2721.31 22.32 116.71 2585.44 -336.03 681.92 760.21 1.86 2783.09 23.11 116.50 2642.43 -346.72 703.25 784.06 1.29 2843.96 22.87 116.70 2698.47 -357.36 724.50 807.84 0.41 2907.92 22.59 116.93 2757.46 -368.51 746.56 832.55 0.45 2969.84 22.28 116.58 2814.69 -379.15 767.66 856.18 0.55 3032.33 22.00 117.11 2872.57 -389.78 788.68 879.73 0.55 3093.32 21.94 116.98 2929.13 -400.15 809.00 902.54 0.12 3155.46 21.76 117.25 2986.81 -410.69 829.59 925.67 0.33 3217.73 21.68 117.21 3044.66 -421.24 850.08 948.71 0.14 3279.30 21.51 117.49 3101.91 -431.65 870.21 971.36 0.32 3340.86 21.28 117.74 3159.22 -442.06 890.10 993.81 0.41 3402.95 21.12 117.47 3217.11 -452.46 910.00 1016.25 0.30 3465.55 21.46 116.83 3275.44 -462.83 930.23 1038.98 0.66 3527.37 22.09 115.82 3332.85 -473.00 950.79 1061.91 1.18 3589.73 21.64 115.01 3390.72 -482.97 971.76 1085.13 0.86 3651.67 21.27 115.01 3448.37 -492.54 992.29 1107.78 0.61 3713.95 21.08 114.84 3506.45 -502.02 1012.69 1130.27 0.32 3774.62 21.05 114.63 3563.06 -511.15 1032.49 1152.07 0.13 3836.62 21.75 114.45 3620.79 -520.54 1053.07 1174.68 1.14 3899.79 22.22 114.95 3679.36 -530.42 1074.56 1198.33 0.79 3962.02 21.77 115.18 3737.06 -540.30 1095.67 1221.63 0.73 4042.33 21.79 114.28 3794.93 -549.97 1116.67 1244.74 0.54 4085.99 21.72 114.21 3852.19 -559.35 1137.51 1267.59 0.12 4148.22 21.69 114.08 3910.01 -568.77 1158.51 1290.59 0.09 4209.66 21.55 114.40 3967.13 -578.06 1179.15 1313.22 0.30 4271.21 21.50 114.52 4024.39 -587.41 1199.70 1335.79 0.11 4333.52 21.45 114.11 4082.37 -596.80 1220.49 1358.59 0.25 4396.41 22.04 115.28 4140.79 -606.54 1241.66 1381.89 1.17 4458.41 21.92 117.24 4198.28 -616.81 1262.47 1405.09 1.20 4519.69 21.85 115.59 4255.14 -626.97 1282.93 1427.93 1.01 KBU 11-08Z 19 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 4581.67 21.86 115.57 4312.67 -636.93 1303.74 1451.00 0.03 4645.34 21.89 115.61 4371.76 -647.18 1325.13 1474.72 0.06 4706.78 21.69 116.14 4428.81 -657.13 1345.65 1497.53 0.46 4767.86 21.57 115.83 4485.59 -667.00 1365.89 1520.04 0.27 4829.58 21.62 116.00 4542.97 -676.92 1386.32 1542.76 0.12 4893.67 21.56 115.95 4602.57 -687.25 1407.52 1566.34 0.09 4956.17 21.35 115.69 4660.74 -697.21 1428.10 1589.20 0.37 5017.00 21.25 115.75 4717.41 -706.80 1448.00 1611.30 0.17 5078.87 21.72 115.37 4774.98 -716.57 1468.45 1633.96 0.79 5140.93 22.18 115.68 4832.54 -726.57 1489.38 1657.15 0.76 5202.39 22.10 115.69 4889.47 -736.61 1510.25 1680.32 0.13 5264.98 22.09 115.93 4947.46 -746.86 1531.45 1703.86 0.15 5327.28 22.00 116.14 5005.21 -757.12 1552.46 1727.24 0.19 5388.79 22.00 116.31 5062.24 -767.31 1573.13 1750.28 0.10 5451.02 22.01 116.56 5119.94 -777.69 1594.01 1773.60 0.15 5513.06 21.86 116.69 5177.49 -788.07 1614.73 1796.77 0.25 5575.02 21.91 117.06 5234.98 -798.51 1635.33 1819.87 0.24 5637.12 21.81 117.48 5292.62 -809.10 1655.88 1842.98 0.30 5699.10 21.63 117.19 5350.20 -819.64 1676.25 1865.91 0.32 5761.34 21.47 117.24 5408.09 -830.09 1696.58 1888.77 0.27 5823.31 21.38 117.36 5465.77 -840.47 1716.70 1911.40 0.16 5885.26 21.22 117.89 5523.49 -850.91 1736.64 1933.89 0.40 5904.44 21.21 117.53 5541.37 -854.14 1742.78 1940.83 0.69 5984.78 19.17 116.40 5616.77 -866.72 1767.48 1968.54 2.58 6046.18 18.41 115.50 5674.90 -875.37 1785.26 1988.32 1.32 6108.30 16.50 116.04 5734.16 -883.47 1802.04 2006.95 3.09 6171.06 15.21 117.58 5794.53 -891.19 1817.35 2024.09 2.16 6233.65 13.61 117.37 5855.15 -898.38 1831.16 2039.66 2.56 6293.60 11.62 115.66 5913.65 -904.24 1842.87 2052.75 3.38 6357.96 9.67 116.95 5976.90 -909.50 1853.53 2064.64 3.06 6419.41 8.20 114.40 6037.60 -913.65 1862.13 2074.18 2.47 6479.54 6.86 111.89 6097.21 -916.76 1869.36 2082.05 2.30 6542.36 5.37 112.15 6159.67 -919.26 1875.57 2088.73 2.37 6604.89 4.26 115.78 6221.98 -921.38 1880.37 2093.97 1.83 6666.46 3.91 114.80 6283.39 -923.25 1884.34 2098.36 0.59 6728.78 3.93 112.65 6245.57 -924.97 1888.24 2102.61 0.24 6792.72 3.90 114.72 6409.36 -926.72 1892.23 2106.97 0.23 6852.77 3.86 114.60 6469.27 -928.41 1895.92 2111.03 0.06 6914.60 3.83 112.81 6530.96 -930.08 1899.72 2115.17 0.20 KBU 11-08Z 20 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 6976.20 3.64 114.11 6592.43 -931.67 1903.40 2119.18 0.34 7039.42 3.41 117.13 6655.53 -933.35 1906.90 2132.07 0.47 7101.07 3.49 115.64 6717.07 -935.00 1910.22 2126.78 0.19 7162.21 3.31 120.07 6778.10 -936.69 1913.43 2130.40 0.52 7226.21 3.36 116.21 6841.99 -938.44 1916.71 2134.12 0.36 7288.06 3.33 116.72 6903.74 -940.05 1919.95 2137.73 0.07 7350.22 3.20 114.60 6965.80 -941.59 1923.14 2141.27 0.28 7411.89 3.29 111.26 7027.37 -942.95 1926.35 2144.75 0.34 7473.48 3.19 112.55 7088.86 -944.24 1919.58 2148.22 0.20 7535.14 3.09 118.25 7150.43 -945.69 1932.62 2151.59 0.53 7597.80 3.25 112.14 7212.99 -947.16 1935.76 2155.05 0.60 7659.70 3.34 108.15 7274.79 -948.38 1939.10 2158.59 0.40 7721.33 3.11 107.33 7336.32 -949.44 1942.40 2162.03 0.38 7782.67 3.96 112.49 7397.55 -950.75 1945.95 2165.79 1.48 7845.72 4.67 112.71 7460.42 -952.57 1950.33 2170.53 1.12 7908.84 5.13 115.40 7523.30 -954.77 1955.25 2175.91 0.82 7971.11 5.43 114.73 7585.31 -957.20 1960.45 2181.65 0.49 8031.60 5.35 113.79 7645.53 -959.53 1965.63 2187.33 0.20 8094.13 5.17 115.05 7707.80 -961.90 1970.85 2193.05 0.35 8157.21 5.08 115.08 7770.63 -964.29 1975.95 2198.69 0.14 8219.38 4.88 115.41 7832.56 -966.59 1980.83 2204.08 0.33 8282.05 5.14 114.85 7894.99 -968.91 1985.78 2209.55 0.43 8343.20 5.72 112.66 7955.87 -971.24 1991.08 2215.34 1.01 8404.20 5.47 114.56 8016.58 -973.62 1996.53 2221.28 0.52 8465.40 5.21 115.63 8077.51 -976.03 2001.69 2226.97 0.46 8529.09 5.37 113.13 8140.93 -978.45 2007.04 2232.84 0.44 8589.41 5.33 112.02 8200.99 -980.61 2012.23 2238.46 0.18 8653.12 5.39 110.07 8264.42 -982.75 2017.79 2244.38 0.30 8713.53 5.17 111.06 8324.57 -984.70 2022.99 2249.92 0.38 8775.70 5.07 107.61 8386.50 -986.54 2028.23 2255.43 0.52 8838.95 4.55 106.47 8449.52 -988.10 2033.30 2260.67 0.83 8900.06 4.48 106.93 8510.44 -989.48 2037.90 2265.41 0.14 8963.44 4.33 104.58 8573.64 -990.80 2042.59 2270.20 0.36 9025.90 4.22 105.83 8635.92 -992.02 2047.08 2274.78 0.23 9087.35 4.02 103.55 8697.21 -993.15 2051.35 2279.11 0.42 9148.04 3.93 105.50 8757.76 -994.20 2055.43 2283.24 0.27 9211.32 3.84 104.60 8820.89 -995.31 2059.57 2287.45 0.17 9273.53 3.72 102.13 8882.97 -996.26 2063.56 2291.45 0.33 9335.70 3.64 105.30 8945.01 -997.21 2067.43 2295.34 0.35 KBU 11-08Z 21 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 9396.36 3.46 106.68 9005.55 -998.24 2071.04 2299.04 0.34 9459.17 3.27 103.12 9068.25 -999.19 2074.60 2302.66 0.45 9520.43 2.71 104.14 9129.43 -999.94 2077.71 2305.78 0.91 9581.80 2.51 102.43 9190.74 -1000.59 2080.43 2308.51 0.35 9644.35 2.57 98.05 9253.22 -1001.08 2083.16 2311.17 0.32 9706.47 2.58 100.17 9315.28 -1001.52 2085.91 2313.84 0.16 9767.11 2.42 98.40 9375.86 -1001.95 2088.53 2316.38 0.29 9828.88 2.32 95.36 9437.58 -1002.26 2091.06 2318.79 0.27 9861.01 2.34 95.28 9469.68 -1002.38 2092.36 2320.01 0.06 9900** 2.34 95.28 9508.64 -1002.52 2093.94 2321.50 0.01 **Projected KB U 1 1 - 0 8 Z 22 4. 2 B i t R e c o r d BI T N O . S I Z E T Y P E S / N JE T S / TF A IN O U T F T H R S AV E RO P Ft / H R CONDITION 1 1 0 ¾ ” 2 9 7 / 8 ” H D B S , M M 6 5 1 2 4 0 6 1 5 6 6 x 1 3 1 6 1 3 ’ 5 9 4 6 ’ 4 3 3 3 ’ 2 7 . 5 1 5 7 . 6 1 - 2 - S - X - I - E R - T D 3 6 ¾ ” H D B S , E M 6 5 D 1 2 2 7 3 6 9 0 6 x 1 0 5 9 4 6 ’ 9 9 0 0 ’ 3 9 5 4 ’ 5 4 . 7 5 7 2 . 2 2 - 1 - B T - N - X - I - N O - T D KB U 1 1 - 0 8 Z 23 4. 3 M u d R e c o r d Co n t r a c t o r : M . I . S w a c o Da t e De p t h (M D / T V D ) MW (p p g ) VI S (s / q t ) PV Y P G e l s FL (c c ) FC So l s (% ) O/ W Ra t i o Sd (% ) MB T p H Cl (ml/l) Ca (ml/l) KL A - S H I E L D 4/ 2 6 / 2 0 1 4 1 5 1 8 / 1 5 0 0 9 . 4 5 7 2 3 2 3 4 / 6 / 1 0 5 . 4 1 / 1 6 2 / 9 2 . 2 5 6 . 2 5 9 . 7 5 0 0 0 0 4 0 0 4/ 2 7 / 2 0 1 4 3 3 8 1 / 3 1 7 5 9 . 4 5 9 1 4 2 2 5 / 8 / 1 2 5 . 4 1 / 1 6 2 / 9 2 . 2 5 6 . 2 5 9 . 2 4 4 0 0 0 3 2 0 4/ 2 8 / 2 0 1 4 4 7 7 9 / 4 5 0 1 9 . 4 6 0 1 5 2 1 4 / 6 / 1 2 5 1 / 1 5 1 / 9 4 . 2 5 6 . 0 9 . 0 5 2 0 0 0 4 0 0 4/ 2 9 / 2 0 1 4 5 9 4 6 / 5 5 8 0 9 . 4 6 0 1 5 2 1 5 / 8 / 1 4 6 1 / 1 5 1 / 9 4 . 5 6 . 5 9 . 0 4 0 0 0 0 4 0 0 4/ 3 0 / 2 0 1 4 5 9 4 6 / 5 5 8 0 9 . 3 7 1 1 6 1 9 5 / 6 / 1 1 6 1 / 1 4 / 9 6 . 5 6 9 . 0 3 6 0 0 0 4 0 0 5/ 1 / 2 0 1 4 5 9 4 6 / 5 5 8 0 9 . 4 5 5 1 5 1 8 5 / 6 / 1 0 6 . 6 1 / 1 5 / 9 5 . 7 5 6 9 . 0 3 3 0 0 0 3 6 0 5/ 2 / 2 0 1 4 5 9 4 6 / 5 5 8 0 9 . 2 4 6 1 5 1 6 4 / 5 / 8 6 . 8 1 / 1 5 / 9 5 . 7 5 5 8 . 9 3 2 0 0 0 3 6 0 5/ 3 / 2 0 1 4 5 9 4 6 / 5 5 8 0 1 0 . 2 8 0 1 6 3 0 8 / 1 5 / 2 8 4 . 4 1 / 1 1 0 / 9 0 0 . 1 2 9 . 8 5 3 0 0 0 1 6 0 5/ 4 / 2 0 1 4 6 6 4 4 / 6 2 6 2 1 0 . 3 6 0 1 7 2 7 7 / 1 6 / 2 8 4 . 4 1 / 1 1 0 2 / 8 8 0 . 1 2 9 . 2 6 4 0 0 0 1 6 0 5/ 5 / 2 0 1 4 7 7 9 0 / 7 4 0 6 1 0 . 4 6 1 2 1 2 7 8 / 2 1 / 3 2 4 1 / 1 1 0 . 5 2 / 8 8 0 . 1 4 9 . 2 6 5 0 0 0 1 2 0 5/ 6 / 2 0 1 4 8 5 6 7 / 8 2 1 3 1 1 . 1 6 0 2 1 2 9 8 / 1 5 / 3 0 4 . 6 1 / 1 1 4 2 / 8 5 0 . 1 3 9 . 2 6 5 0 0 0 1 4 0 5/ 7 / 2 0 1 4 9 3 7 3 / 8 9 8 3 1 1 . 5 6 0 2 6 2 8 8 / 1 9 / 2 9 4 . 4 1 / 1 1 6 1 / 8 3 0 . 1 4 . 2 5 9 . 2 6 1 0 0 0 2 0 0 5/ 8 / 2 0 1 4 9 9 0 0 ’ / 9 5 0 9 1 1 . 5 6 0 2 6 3 4 9 / 2 3 / 3 2 4 . 6 1 / 1 1 7 1 / 8 2 0 . 1 6 . 2 5 9 . 2 6 2 0 0 0 1 8 0 5/ 9 / 2 0 1 4 9 9 0 0 ’ / 9 5 0 9 1 2 . 1 7 0 2 9 3 7 1 0 / 2 0 / 2 8 4 . 4 1 / 1 1 9 2 / 7 9 0 . 1 6 . 2 5 9 . 1 6 1 0 0 0 1 2 0 5/ 1 0 / 2 0 1 4 9 9 0 0 ’ / 9 5 0 9 1 2 . 1 7 1 2 8 3 9 1 0 / 2 0 / 2 8 4 . 4 1 / 1 1 9 1 / 8 0 0 . 1 6 9 . 0 6 1 0 0 0 1 2 0 5/ 1 1 / 2 0 1 4 9 9 0 0 ’ / 9 5 0 9 1 2 . 1 7 4 3 1 3 3 1 0 / 2 1 / 2 8 4 . 4 1 / 1 1 9 1 / 8 0 0 . 1 6 9 . 0 6 1 0 0 0 1 2 0 5/ 1 2 / 2 0 1 4 9 9 0 0 / 9 5 0 9 1 2 . 1 7 4 3 0 3 2 1 0 / 2 0 / 3 0 4 . 6 1 / 1 1 9 1 / 8 0 0 . 1 6 . 2 5 8 . 9 6 0 0 0 0 1 4 0 5/ 1 3 / 2 0 1 4 9 9 0 0 ’ / 9 5 0 9 1 2 . 1 7 6 3 1 3 2 1 0 / 1 9 / 2 9 4 . 4 1 / 1 1 9 1 / 8 0 0 . 1 6 . 2 5 8 . 9 6 0 0 0 0 1 4 0 5/ 1 4 / 2 0 1 4 9 9 0 0 ’ / 9 5 0 9 1 2 . 1 7 1 2 8 3 5 1 0 / 2 0 / 2 7 4 . 6 1 / 1 1 9 1 / 8 0 0 . 1 6 . 2 5 8 . 9 6 1 0 0 0 1 0 0 5/ 1 5 / 2 0 1 4 9 9 0 0 ’ / 9 5 0 9 1 2 . 1 7 2 2 9 3 2 1 0 / 2 0 / 2 9 4 . 7 1 / 1 1 9 1 / 8 0 0 . 1 6 . 2 5 8 . 9 6 1 0 0 0 1 0 0 5/ 1 6 / 2 0 1 4 9 9 0 0 ’ / 9 5 0 9 1 2 . 1 7 1 3 1 3 2 1 0 / 2 3 / 3 1 4 . 8 1 / 1 1 9 1 / 8 0 0 . 1 6 . 2 5 8 . 9 6 1 0 0 0 8 0 5/ 1 7 / 2 0 1 4 9 9 0 0 ’ / 9 5 0 9 1 2 . 1 6 5 2 9 2 7 7 / 1 2 / 1 7 5 . 6 1 / 1 1 9 2 / 7 9 0 . 1 6 . 2 5 8 . 8 5 8 0 0 0 8 0 Ab b r e v i a t i o n s : MW = M u d W e i g h t V I S = F u n n e l V i s c o s i t y PV = P l a s t i c V i s c o s i t y Y P = Y i e l d P o i n t G e l s = G e l S t r e n g t h F L = W a t e r o r F i l t r a t e Lo s s F C = F i l t e r C a k e O / W = O i l t o W a t e r r a t i o S o l s = S o l i d s S d = S a n d c o n t e n t M B T = M e t h y l e n e B l u e A l k , P m = A l k a l i n i t y , M u d pH = A c i d i t y C l = C h l o r i d e s C a = H a r d n e s s C a l c i u m n r = N o t R e c o r d e d KB U 1 1 - 0 8 Z 24 4. 4 D r i l l i n g P r o g r e s s C h a r t DA Y S V E R S U S D E P T H 15 0 0 20 0 0 25 0 0 30 0 0 35 0 0 40 0 0 45 0 0 50 0 0 55 0 0 60 0 0 65 0 0 70 0 0 75 0 0 80 0 0 85 0 0 90 0 0 95 0 0 10 0 0 0 4 /2 5/14 4 /26/14 4 /2 7/14 4/28/14 4/29/14 4 /30 /1 4 5 /1/14 5 /2/14 5 /3 /14 5/4/14 5 /5/1 4 5 /6 /14 5/7/14 5 /8/14 5 /9/14 5 /10/14 5 /1 1/14 5 /1 2/14 5/13/14 5 /14 /1 4 D E P T H ( F T ) 9 7/8" Hole 6 3/4" Hole K B U 1 1 - 0 8 Z KBU 11-08Z 25 5 DAILY REPORTS Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR J. Lott/B. Farrell DATE Apr 28, 2014 DEPTH 3337' PRESENT OPERATION Drill Ahead TIME 0200 YESTERDAY 1613' 24 HOUR FOOTAGE 1724' CASING INFORMATION 10.75" @ 1613' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3032.33' 22.00 117.11 2872.57' 3093.32' 21.94 116.98 2929.13' 3217.73' 21.76 117.25 2986.81 3279.30' 21.51 117.49 3101.91' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED #2 9.875" HDBS MM65 PDC 12406156 6X13 1613' 1724' 9.75 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 18524.3 @ 3136' 5.5 @ 1897' 308.7 201.68 FT/HR SURFACE TORQUE 14773 @ 2136' 1086 @ 2143' 5888.7 7209.75 FT-LBS WEIGHT ON BIT 64 @ 3320' 0 @ 2581' 6.6 11.82 KLBS ROTARY RPM 73 @ 2132' 5 @ 2143' 52.2 57.64 RPM PUMP PRESSURE 1580 @ 2215' 962 @ 2327' 1278.8 1468.97 PSI DRILLING MUD REPORT DEPTH MW VIS PV YP Gels FL CL- FC SOL SD OIL MBT pH Ca+ Alk MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 93 @ 2987' 1 @ 1633' 47.6 TRIP GAS NA CUTTING GAS 0 @ 3337' 0 @ 3337' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 19311 @ 2987' 304 @ 1633' 8921.0 CONNECTION GAS HIGH NA ETHANE (C-2) 0 @ 3337' 0 @ 3337' 0.0 CONNECTION GAS AVG NA PROPANE (C-3) 0 @ 3337' 0 @ 3337' 0.0 CONNECTION GAS CURRENT NA BUTANE (C-4) 0 @ 3337' 0 @ 3337' 0.0 CURRENT BACKGROUND/AVG 79u PENTANE (C-5) 0 @ 3337' 0 @ 3337' 0.0 HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY NA PRESENT LITHOLOGY NA DAILY ACTIVITY SUMMARY Drill and slide ahead from 1613' MD to 2884' MD. CBU and conduct wiper trip to 1399' MD. Conduct rig maintenance activity. TIH to 2884' MD, and continue to drill ahead to 3337' MD at time of report. Max gas for the past 24 hours was 93u, with an overall average of 48u. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2048.50 REPORT BY Steve Pike Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR J. Lott/B. Farrell DATE Apr 29, 2014 DEPTH 4779' PRESENT OPERATION Drill Ahead TIME 0200 YESTERDAY 3338' 24 HOUR FOOTAGE 1441' CASING INFORMATION 10.75" @ 1613' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4581.67' 21.86 115.57 4312.67' 4645.34' 21.89 115.61 4371.76' 4706.78' 21.69 116.14 4428.81' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED #2 9.875" HDBS MM65 PDC 12406156 6x13 1613' 3166' 16 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 1577.4 @ 3508' 2.4 @ 4437' 268.3 244.96205 FT/HR SURFACE TORQUE 11424 @ 4595' 5533 @ 4374' 7584.0 8337.98047 FT-LBS WEIGHT ON BIT 91 @ 4748' 1 @ 3508' 10.5 13.03000 KLBS ROTARY RPM 70 @ 4400' 34 @ 4374' 54.0 60.33000 RPM PUMP PRESSURE 1970 @ 4007' 1259 @ 4375' 1557.0 1573.71997 PSI DRILLING MUD REPORT DEPTH MW VIS PV YP Gels FL CL- FC SOL SD OIL MBT pH Ca+ Alk MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1120 @ 4546' 4 @ 4778' 226.6 TRIP GAS NA CUTTING GAS 0 @ 4779' 0 @ 4779' 0.0 WIPER GAS 383u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 212315 @ 4546' 939 @ 4778' 42778.6 CONNECTION GAS HIGH NA ETHANE (C-2) 0 @ 4779' 0 @ 4779' 0.0 CONNECTION GAS AVG NA PROPANE (C-3) 0 @ 4779' 0 @ 4779' 0.0 CONNECTION GAS CURRENT NA BUTANE (C-4) 0 @ 4779' 0 @ 4779' 0.0 CURRENT BACKGROUND/AVG 10u PENTANE (C-5) 0 @ 4779' 0 @ 4779' 0.0 HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY NA PRESENT LITHOLOGY NA DAILY ACTIVITY SUMMARY Drill and slide ahead from 3338' MD to 4373' MD. CBU, and pump high vis sweep. POOH for wiper trip to 1600' MD. Service top drive, draw works and blocks. TIH to 4373' MD. CBU and pump hi vis sweep, wiper gas 383u. Drill and slide ahead from 4373' MD to 4779' MD. Lost returns, so gas readings dropped way off. Pulled 2 stands, regained circulation. Pumped LCM pill to bottom, lost circulation again. Max gas for the past 24 hours was 1120u. No connection gases were observed. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2048.50 REPORT BY Steve Pike Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR M. Leslie/B. Farrell DATE Apr 30, 2014 DEPTH 5946' PRESENT OPERATION POOH for Wiper Trip TIME 0200 YESTERDAY 4780' 24 HOUR FOOTAGE 1166' CASING INFORMATION 10.75" @ 1613' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5823.31' 21.38 117.36 5465.77' 5885.26' 21.22 117.89 5523.49 5904.44' 21.21 117.53 5541.37' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED #2 9.875" HDBS MM65 PDC 12406156 6x13 1613' 4333' 27.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 570.4 @ 4998' 1.5 @ 5182' 123.5 54.06082 FT/HR SURFACE TORQUE 15853 @ 5281' 1427 @ 5065' 9178.2 10369.54980 FT-LBS WEIGHT ON BIT 21 @ 5084' 2 @ 4838' 10.0 8.60000 KLBS ROTARY RPM 90 @ 5919' 4 @ 5065' 56.2 56.74000 RPM PUMP PRESSURE 1800 @ 5434' 929 @ 4780' 1543.4 1649.81995 PSI DRILLING MUD REPORT DEPTH 5946' MW 9.4 VIS 60 PV 15 YP 21 Gels 5/8/14 FL 6 CL- 40000 FC 1/1 SOL 5 SD 0.5 OIL 1/94 MBT 6.5 pH 9.0 Ca+ 400 Alk 0.6 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1042 @ 5232' 1 @ 4807' 206.4 TRIP GAS NA CUTTING GAS 0 @ 5946' 0 @ 5946' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 218655 @ 5223' 189 @ 4808' 39500.0 CONNECTION GAS HIGH NA ETHANE (C-2) 0 @ 5946' 0 @ 5946' 0.0 CONNECTION GAS AVG NA PROPANE (C-3) 0 @ 5946' 0 @ 5946' 0.0 CONNECTION GAS CURRENT NA BUTANE (C-4) 0 @ 5946' 0 @ 5946' 0.0 CURRENT BACKGROUND/AVG 32u PENTANE (C-5) 0 @ 5946' 0 @ 5946' 0.0 HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 60% Sand, 30% siltstone, 10% claystone @ 5964' MD PRESENT LITHOLOGY 60% Sand, 30% siltstone, 10% claystone @ 5964' MD DAILY ACTIVITY SUMMARY Drill and slide ahead from 4780' MD to 5289' MD. CBU, change shaker screens, and transfer mud to active tanks. Drill ahead from 5289' MD to 5946' MD, 5580' TVD for intermediate casing depth. CBU and collected bottoms up sample. Start wiper trip. Maximum gas for this 24 hour period was 1042u @ 5232' MD. No connection gases were observed. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2048.50 REPORT BY Steve Pike Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR M. Leslie/B. Farrell DATE May 01, 2014 DEPTH 5946' PRESENT OPERATION TIH to bottom TIME 0200 YESTERDAY 5946' 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 1613' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED #2 9.875" HDBS MM65 PDC 12406156 6x13 1613' 4333' 27.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5946' MW 9.4 VIS 60 PV 15 YP 21 Gels 5/8/14 FL 6 CL- 40000 FC 1/1 SOL 5 SD 0.5 OIL 1/94 MBT 6.5 pH 9.0 Ca+ 400 Alk 0.6 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ 1 @ TRIP GAS NA CUTTING GAS @ 0 @ WIPER GAS 71u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ 189 @ CONNECTION GAS HIGH NA ETHANE (C-2) @ 0 @ CONNECTION GAS AVG NA PROPANE (C-3) @ 0 @ CONNECTION GAS CURRENT NA BUTANE (C-4) @ 0 @ CURRENT BACKGROUND/AVG 33u PENTANE (C-5) @ 0 @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY POOH for wiper trip from 5946' MD to 5050' MD. BROOH from 5050' MD to 4667' MD. BROOH from 4667' MD to 4200'MD. TIH from 4200' MD to 4550' MD. Open well commander. Pump 30 bbl LCM pill. Pull six stands. CBU. Close well commander. POOH to shoe. Service rig. TIH to 5823' MD at time of report. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2048.50 REPORT BY Steve Pike Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR M. Leslie/B. Farrell DATE May 02, 2014 DEPTH 5946' PRESENT OPERATION RIH w/ Casing TIME 0200 YESTERDAY 5946' 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 1613' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED #2 9.575" HDBS MM65 PDC 12406156 6x13 1613' 5946' 4333' 27.5 Casing DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5946' MW 9.4 VIS 55 PV 15 YP 18 Gels 5/6/10 FL 6.6 CL- 33000 FC 1/1 SOL 5 SD 0.75 OIL /95 MBT 6 pH 9.0 Ca+ 360 Alk 0.7 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS 240u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ CONNECTION GAS AVG NA PROPANE (C-3) @ @ CONNECTION GAS CURRENT NA BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Wash and ream to bottom. TIH from 5823' MD to 5945' MD. Circulate and pump pill. Open well commander, pumped 62 bbl pill. POOH to BHA. Closed well commander. Flushed through BHA with water. Lay down BHA. Change upper variables to casing RAMs. Pulled wear bushing, Dummy run casing hanger. Rig up test equipment. Test casing RAMs. R/U Tesco CRT and running equipment. PU 7.625" shoe track and first 3 joints. RIH with casing. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2048.50 REPORT BY Steve Pike Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR M. Leslie/B. Farrell DATE May 3 2014 DEPTH 5946' PRESENT OPERATION Testing BOPs TIME 0200 YESTERDAY 5946' 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 1613' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 2 9.575" HDBS MM65 PDC 12406156 6x13 1613' 5946' 4333' 27.5 1-2-S-X-I-ER-TD Casing DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 9.2 VIS 46 PV 15 YP 16 Gels 4/5/8 FL 6.8 CL- 32000 FC 1/1 SOL 5 SD 0.75 OIL /95 MBT 5 pH 8.9 Ca+ 360 Alk 0.5 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 82u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled PRESENT LITHOLOGY No new footage drilled DAILY ACTIVITY SUMMARY Rig CRT and All running equipment. Replaced broken nipple and valve on weatherord air slips. Pick up 7.625" shoe. Test floats. RIH with shoe and circulate bottoms up. Test BOPs. CANRIG PERSONNEL ON BOARD 3 DAILY COST $2048.50 REPORT BY D. Muller Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR M. Leslie/B. Farrell DATE May 3, 2014 DEPTH 5946.00000 PRESENT OPERATION Displacing mud TIME 23:59 YESTERDAY 1500.00000 24 HOUR FOOTAGE 4446 CASING INFORMATION 10.75" @ 1613' 7.625 @ 5932" SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.75 PDC 12273690 6x10 5946' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 10.2 VIS 78 PV 16 YP 28 Gels 8/13/22 FL 4.4 CL- 53000 FC 1/1 SOL 10 SD 0.1 OIL /90 MBT 2 pH 9.8 Ca+ 160 Alk 1.9 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY NO NEW FOOTAGE DRILLED PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Install and test new HCR and choke line. Pick up drilling BHA and RIH to 789'. Slip and Cut drilling line. Continue to RIH with singles. Tag bottom and proceed to test BOP. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2828.50 REPORT BY D. Muller Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR M. Leslie/B. Farrell DATE May 04, 2014 DEPTH 6648' PRESENT OPERATION Drilling ahead TIME 2359 YESTERDAY 5932' 24 HOUR FOOTAGE 716 CASING INFORMATION 10.75" @ 1613' 7.625 @ 5932" SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6604.89' 4.26 115.78 6221.98' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.75 PDC 12273690 6x10 5946' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 289.9 @ 6561' 4.3 @ 6241' 73.9 66.39282 FT/HR SURFACE TORQUE 10369 @ 5946' 842 @ 6223' 4071.1 8505.36035 FT-LBS WEIGHT ON BIT 24 @ 6181' 0 @ 6054' 7.7 9.45000 KLBS ROTARY RPM 65 @ 5934' 1 @ 6223' 22.5 46.49000 RPM PUMP PRESSURE 2488 @ 6615' 1540 @ 5947' 2159.5 2405.98999 PSI DRILLING MUD REPORT DEPTH MW 10.3 VIS 60 PV 17 YP 27 Gels 7/16/28 FL 4.4 CL- 64000 FC 1/1 SOL 10 SD 0.1 OIL 2/88 MBT 2 pH 9.2 Ca+ 160 Alk 1.3 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 395 @ 6436.00000 1 @ 6294.00000 56.6 TRIP GAS CUTTING GAS 0 @ 6648.00000 0 @ 6648.00000 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 78939 @ 6436.00000 272 @ 6294.00000 11513.0 CONNECTION GAS HIGH ETHANE (C-2) 0 @ 6648.00000 0 @ 6648.00000 0.0 CONNECTION GAS AVG PROPANE (C-3) 0 @ 6648.00000 0 @ 6648.00000 0.0 CONNECTION GAS CURRENT BUTANE (C-4) 0 @ 6648.00000 0 @ 6648.00000 0.0 CURRENT BACKGROUND/AVG 40 PENTANE (C-5) 0 @ 6648.00000 0 @ 6648.00000 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY TUFFACEOUS SILTSTONE / TUFFACEOUS SANDSTONE/SAND PRESENT LITHOLOGY 50% Sand 40% Tuffaceous Siltstone 10% Tuffaceous Sandstone DAILY ACTIVITY SUMMARY Tag float collar at 5844'. Drill out cement/shoe. Drill 20' of new formation to 5966'. Circulate 10.3 ppg in/out. Perform FIT to 13.5 ppg EMW. Drilling ahead. Sliding to drop angle from 21 to 5 degrees. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2828.50 REPORT BY D. MULLER Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR M. Leslie/B. Farrell DATE May 05, 2014 DEPTH 7790' PRESENT OPERATION Drilling ahead TIME 2359 YESTERDAY 6648' 24 HOUR FOOTAGE 1142' CASING INFORMATION 10.75" @ 1613' 7.625" @ 5932' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7845.72' 4.67 112.71 7460.42' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.75 PDV 12273690 6x10 5946' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 537.2 @ 7016' 1.3 @ 7301' 104.8 58.81739 FT/HR SURFACE TORQUE 13629 @ 7631' 561 @ 7334' 7769.4 0.00000 FT-LBS WEIGHT ON BIT 36 @ 7587' 1 @ 7327' 9.1 5.92000 KLBS ROTARY RPM 63 @ 7318' 0 @ 7329' 45.8 0.00000 RPM PUMP PRESSURE 2821 @ 7647' 1863 @ 7586' 2556.9 2453.88989 PSI DRILLING MUD REPORT DEPTH MW 10.4 VIS 61 PV 21 YP 27 Gels 8/21/32 FL 4 CL- 65000 FC 1/1 SOL 10.5 SD 0.1 OIL 2/88 MBT 4 pH 9.2 Ca+ 120 Alk 1.4 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1300 @ 7431' 57 @ 6648' 362.2 TRIP GAS CUTTING GAS 0 @ 7790' 0 @ 7790' 0.0 WIPER GAS 110u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 260827 @ 7431' 10613 @ 6648' 71903.1 CONNECTION GAS HIGH ETHANE (C-2) 0 @ 7790' 0 @ 7790' 0.0 CONNECTION GAS AVG PROPANE (C-3) 0 @ 7790' 0 @ 7790' 0.0 CONNECTION GAS CURRENT BUTANE (C-4) 0 @ 7790.' 0 @ 7790' 0.0 CURRENT BACKGROUND/AVG PENTANE (C-5) 0 @ 7790' 0 @ 7790' 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous siltstone / tuffaceous sandstone / tuffaceous claystone / coal / carbonaceous shales PRESENT LITHOLOGY 10% tuffaceous claystone/shale 60% tuffaceous siltstone 30% tuffaceous sandstone DAILY ACTIVITY SUMMARY Drill to 7202'. CBU. TOH to the shoe. Service rig. RIH. Pump sweep around btm. Drilling ahead - WOB 3; GPM 270; & SPP ±2440; continue drill ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2828.50 REPORT BY D Muller Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR M. Leslie/D. Yessak DATE May 06, 2014 DEPTH 8565' PRESENT OPERATION Drilling ahead TIME 2359 YESTERDAY 7790' 24 HOUR FOOTAGE 775' CASING INFORMATION 10.75" @ 1613' 7.625" @ 5932' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8529.09 5.37 113.13 8140.93 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.75 PDC 12273690 6x10 5946' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 362.8 @ 7973' 2.8 @ 8558' 108.9 133.52565 FT/HR SURFACE TORQUE 9792 @ 7975' 2269 @ 8542' 7556.3 9682.55957 FT-LBS WEIGHT ON BIT 25 @ 8543' 0 @ 7888' 9.0 6.39000 KLBS ROTARY RPM 59 @ 7817' 4 @ 8542' 42.5 53.54000 RPM PUMP PRESSURE 2983 @ 8559' 2335 @ 8320' 2706.3 2935.81006 PSI DRILLING MUD REPORT DEPTH MW 11.1 VIS 60 PV 21 YP 29 Gels 8/15/30 FL 4.6 CL- 65000 FC 1/1 SOL 14 SD 0.1 OIL 2/85 MBT 3 pH 9.2 Ca+ 140 Alk 1.2 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 2550 @ 8195' 79 @ 8543' 393.9 TRIP GAS CUTTING GAS 0 @ 8565' 0 @ 8565' 0.0 WIPER GAS 2822u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 495937 @ 8195' 2133 @ 8543' 73413.9 CONNECTION GAS HIGH 1933u ETHANE (C-2) 0 @ 8565' 0 @ 8565' 0.0 CONNECTION GAS AVG PROPANE (C-3) 112 @ 8467' 1 @ 8526' 5.0 CONNECTION GAS CURRENT BUTANE (C-4) 0 @ 8565' 0 @ 8565' 0.0 CURRENT BACKGROUND/AVG PENTANE (C-5) 0 @ 8565' 0 @ 8565' 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous siltstone / tuffaceous sandstone / tuffaceous claystone / coal / carbonaceous shales PRESENT LITHOLOGY 80% Tuffaceous siltstone. 20% Tuffaceous sandstone. trace Tuff / Coal DAILY ACTIVITY SUMMARY Drilling ahead to 8504'. Weight up to 11.1 ppg due to high gas. Short trip back to 7000'. RIH to 8507 and continue to slide and rotate ahead to 8567'. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2828.50 REPORT BY D Muller Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR M. Leslie/D. Yessak DATE May 07, 2014 DEPTH 9373' PRESENT OPERATION POOH for wiper trip / circulating out gas TIME 2359 YESTERDAY 8565' 24 HOUR FOOTAGE 808' CASING INFORMATION 10.75" @ 1613' 7.625" @ 5932' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9335.70' 3.64 105.30 8945.01' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.75 PDC 12273690 6x10 5946' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 275.6 @ 8843' 1.5 @ 9064' 87.6 119.03331 FT/HR SURFACE TORQUE 11140 @ 8861' 8069 @ 8650' 9405.9 9744.32031 FT-LBS WEIGHT ON BIT 23 @ 8882' 0 @ 8919' 8.8 10.77000 KLBS ROTARY RPM 67 @ 9149' 40 @ 8743' 53.6 53.04000 RPM PUMP PRESSURE 3469 @ 8782' 2541 @ 8884' 3027.5 3025.02002 PSI DRILLING MUD REPORT DEPTH MW 11.5 VIS 60 PV 26 YP 28 Gels 8/19/29 FL 4.4 CL- 61000 FC 1/1 SOL 16 SD 0.1 OIL 1/83 MBT 4.25 pH 9.2 Ca+ 200 Alk 1.2 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1954 @ 8839' 54 @ 9289.00000 405.6 TRIP GAS CUTTING GAS 0 @ 9373' 0 @ 9373.00000 0.0 WIPER GAS 2630u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 404833 @ 8839' 10228 @ 9289' 82364.2 CONNECTION GAS HIGH 1700u ETHANE (C-2) 0 @ 9373' 0 @ 9373' 0.0 CONNECTION GAS AVG PROPANE (C-3) 177 @ 8881' 0 @ 8631' 13.1 CONNECTION GAS CURRENT BUTANE (C-4) 0 @ 9373' 0 @ 9373' 0.0 CURRENT BACKGROUND/AVG PENTANE (C-5) 0 @ 9373' 0 @ 9373' 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous siltstone.Tuffaceous sandstone. Tuff. CoaL PRESENT LITHOLOGY 70% Tuffaceous Sandstone. 30% Tuffaceous Siltstone DAILY ACTIVITY SUMMARY Drilling to 8882'. High gas - mud over the rotary table. Well shut in. Circulate through the choke and gas buster. Weight up to 11.3 ppg. Open well and drill ahead to 8940'. High gas. Weight up to 11.5 ppg. Continue to drill ahead to marker point, ±9375' - for short trip. Currently POOH to slated 7800', at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2828.50 REPORT BY D Muller Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR M. Leslie/D. Yessak DATE May 8, 2014 DEPTH 9900' PRESENT OPERATION POOH TIME 2359 YESTERDAY 9373' 24 HOUR FOOTAGE 527' CASING INFORMATION 10.75" @ 1613' 7.625" @ 5932' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9900 2.34 95.28 9508.64 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.75" PDC 12273690 6x10 5946' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 185.5 @ 9692' 1.3 @ 9463' 73.5 FT/HR SURFACE TORQUE 11995 @ 9477' 9561 @ 9374' 10628.6 FT-LBS WEIGHT ON BIT 15 @ 9616' 1 @ 9375' 8.5 KLBS ROTARY RPM 67 @ 9878' 39 @ 9435' 58.3 RPM PUMP PRESSURE 3334 @ 9639' 2770 @ 9374' 3052.6 PSI DRILLING MUD REPORT DEPTH 9900 / 9509 MW 11.5 VIS 60 PV 26 YP 34 Gels 9/23/32 FL 4.6 CL- 62000 FC 1/1 SOL 17 SD 0.1 OIL 1/82 MBT 6.25 pH 9.1 Ca+ 180 Alk 1.2 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1166 @ 9493' 49 @ 9705' 222.1 TRIP GAS CUTTING GAS 0 @ 9900' 0 @ 9900' 0.0 WIPER GAS 2737 CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 231691 @ 9493' 10068 @ 9705' 44391.9 CONNECTION GAS HIGH 191 ETHANE (C-2) 0 @ 9900' 0 @ 9900' 0.0 CONNECTION GAS AVG PROPANE (C-3) 117 @ 9494' 0 @ 9747' 18.1 CONNECTION GAS CURRENT 0 BUTANE (C-4) 0 @ 9900' 0 @ 9900' 0.0 CURRENT BACKGROUND/AVG PENTANE (C-5) 0 @ 9900' 0 @ 9900' 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous siltstone.Tuffaceous sandstone. PRESENT LITHOLOGY 80% Tuffaceous Sandstone 20% Tuffaceous Siltstone trace% Tuff DAILY ACTIVITY SUMMARY TOH to 9373'. Service rig. RIH. Pick up 12 singles. Break circulation at 9312'. Highgas - 2700 units. Close the bag and circulate through the choke and gas buster tocirculate out gas. Open bag - well static. Wash down the last stand. Drilling ahead -TD, 9900'. CBU and perform test to determine density increase. Currently circulatingwhile weighting up mud density to 11.7ppg. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2828.50 REPORT BY D Muller Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR M. Leslie/D. Yessak DATE May 9, 2014 , DEPTH 9900' PRESENT OPERATION POOH TIME 2359 YESTERDAY 9900' 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 1613' 7.625" @ 5932' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.75" PDC 12273690 6x10 5946' 9900' 3954' 54.75 N/A TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9900 / 9509 MW 12.1 VIS 70 PV 29 YP 37 Gels 10/20/28 FL 4.4 CL- 61000 FC 1/1 SOL 19 SD 0.1 OIL 8/79 MBT 6.25 pH 9.1 Ca+ 120 Alk 0.5 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 2549u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Weight up to 11.7 ppg. Service rig. TOH. Tight at 9500' and 9290'. Continue to TOH to shoe. Service rig. RIH. Wash down last stand. CBU. High gas - 2600 units. Shut in well and circulate through the choke and gas buster. Circulate out gas. Open up well. Circulate at 6 bpm and weight up to 12.1 ppg. POOH to surface at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $2828.50 REPORT BY D Muller Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR M. Leslie/D. Yessak DATE May 10, 2014 , DEPTH 9900' PRESENT OPERATION Wireline logging TIME 2359 YESTERDAY 9900' 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 1613' 7.625" @ 5932' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.75" PDC 12273690 6x10 5946' 9900' 3954' 54.75 2-1-BT-N-X-I-NO-TD GRADE: 2-1-BT-N-X-I-NO-TD TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9900 / 9509 MW 12.1 VIS 71 PV 28 YP 39 Gels 10/20/28 FL 4.4 CL- 61000 FC 1/1 SOL 19 SD 0.1 OIL 1/80 MBT 6 pH 9.0 Ca+ 120 Alk 0.5 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 2549u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY no new footage drilled PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Continue to TOH. Pump out from 9446' to 7800'. CBU - high gas 105 units. POOH on elevators from 7800' to the shoe. CBU. Flow check. Pump slug and continue out of hole. Lay down BHA. Clear & clean floor. Test BOP's. R/u SCHLUMBERGER, and run in on wireline with the RFT log-tool, on first run (Pressure measurement). Tool got to bottom successfully. CANRIG PERSONNEL ON BOARD 4 DAILY COST 4 REPORT BY D Muller Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR M. Leslie/D. Yessak DATE May 11, 2014 , DEPTH 9900' PRESENT OPERATION TIH TIME 2359 YESTERDAY 9900' 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 1613' 7.625" @ 5932' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9900 / 9509 MW 12.1 VIS 74 PV 31 YP 33 Gels 10/21/28 FL 4.4 CL- 61000 FC 1/1 SOL 19 SD 0.1 OIL 1/80 MBT 6 pH 9.0 Ca+ 120 Alk 0.5 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 2549u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Obtained 21 pressure samples with the RFT tool. POOH to surface due to tool problem. RIH with RFT. Tool became stuck at 9645'. Wireline is thought to be differentially stuck around 6700'. Strip wireline over drill pipe and RIH with drill pipe to retrieve RFT tool. Con't to RIH at report time. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2048.50 REPORT BY D Muller Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR M. Leslie/D. Yessak DATE May 12, 2014 DEPTH 9900' PRESENT OPERATION Fishing with line TIME 2359 YESTERDAY 9900' 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 1613' 7.625" @ 5932' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9900 / 9509 MW 12.1 VIS 74 PV 30 YP 32 Gels 10/20/30 FL 4.6 CL- 60000 FC 1/1 SOL 19 SD 0.1 OIL 1/80 MBT 6.25 pH 8.9 Ca+ 140 Alk 0.5 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 2549u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY RIH stripping over wireline to 9604'. Circulated at 9530' to establish circulation. Hooked fish. Verified tool in overshot. Cut wireline and tie back into spool. TOH with fish. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2048.50 REPORT BY D Muller Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR M. Leslie/D. Yessak DATE May 13, 2014 DEPTH 9900' PRESENT OPERATION POOH TIME 2359 YESTERDAY 9900' 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 1613' 7.625" @ 5932' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9900 / 9509 MW 12.1 VIS 76 PV 31 YP 32 Gels 10/19/29 FL 4.4 CL- 60000 FC 1/1 SOL 19 SD 0.1 OIL 1/80 MBT 6.25 pH 8.9 Ca+ 140 Alk 0.5 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY RIH to 9604' with drill pipe. Recover fish. Attempt to release from wireline - couldn't release. Drill pipe differentially stuck while trying to TOH with fish. CBU. 1400+ units of gas. Work drill pipe free. TOH with fish - cutting wireline every stand. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2048.50 REPORT BY D Muller Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR J Lott / D Yessak DATE May 14, 2014 DEPTH 9900' PRESENT OPERATION TIH TIME 2359 YESTERDAY 9900' 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 1613' 7.625" @ 5932' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9900 / 9509 MW 12.1 VIS 71 PV 28 YP 35 Gels 10/20/27 FL 4.6 CL- 61000 FC 1/1 SOL 19 SD 0.1 OIL 1/80 MBT 6.25 pH 8.9 Ca+ 100 Alk 0.5 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 1696u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY TOH w/Line Fish on DP and L/d same. R/d SCHLUMBERGER. P/u and M/u Cleaning out assembly as per Prog. RIH same as HILCORPs procedure - filling string every 1000' and breaking circulation. F/check well - static. Con't to RIH at report time. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2048.50 REPORT BY D Muller Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR J Lott / D Yessak DATE May 15, 2014 DEPTH 9900' PRESENT OPERATION POOH TIME 2359 YESTERDAY 9900' 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 1613' 7.625" @ 5932' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9900 / 9509 MW 12.1 VIS 72 PV 29 YP 32 Gels 10/20/29 FL 4.7 CL- 61000 FC 1/1 SOL 19 SD 0.1 OIL 1/80 MBT 6.25 pH 8.9 Ca+ 100 Alk 0.5 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 1450u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Tag btm w/Clean-out run assembly; brk circulation w/annuli content to minimize gasinflux reading. Sweep wellbore w/300+ Hi-vis marker- sweep to unload the annuli -see sweep tracker for result. POOH to ~7500' and spot Lo-Torq Pill; con't to TOHt/3172'; while L/d DPs, and slugged string. TOH wellbore string t/surface; L/d DPs. RIH DPs on derrick fingers t/4294'. TOH t/4140' and slugged string. Con't POOH; L/d DPs t/3958' at report time. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2048.50 REPORT BY D Muller Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR J Lott / D Yessak DATE May 16, 2014 DEPTH 9900' PRESENT OPERATION Running casing TIME 2359 YESTERDAY 9900' 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 1613' 7.625" @ 5932' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 12.1 VIS 72 PV 29 YP 32 Gels 10/20/29 FL 4.7 CL- 61000 FC 1/1 SOL 19 SD 0.1 OIL 1/80 MBT 6.25 pH 8.9 Ca+ 100 Alk 0.5 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled PRESENT LITHOLOGY No gas in last 24 hours DAILY ACTIVITY SUMMARY Finish RIH to 4714'. POOH while laying down DP from 4714 to bit. Service /repair rig. Start running 5" casing. At 3080' at report time CANRIG PERSONNEL ON BOARD 2 DAILY COST $2048.50 REPORT BY D Muller Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR J Lott / D Yessak DATE May 17, 2014 DEPTH 9900' PRESENT OPERATION Flushing well control system TIME 2359 YESTERDAY 9900' 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 1613' 7.625" @ 5932' 5" @ 9895' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 12.1 VIS 65 PV 29 YP 27 Gels 7/12/17 FL 5.6 CL- 58000 FC 1/1 SOL 19 SD 0.1 OIL 2/79 MBT 6.25 pH 8.8 Ca+ 80 Alk 0.5 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 61u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY RIH 5-in Production string to btm and cement same as per HILCORP's procedure. Displaced string content to filtered 6% - KCl brine. R/d WEATHERFORD, and B.J Services. Currently flushing out SAXON's Well Control equipment. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2048.50 REPORT BY D Muller Hilcorp Alaska, LLC DAILY WELLSITE REPORT KBU 11-08Z REPORT FOR J Lott / D Yessak DATE May 18, 2014 DEPTH 9900' PRESENT OPERATION Rig down / Canrig released TIME 2359 YESTERDAY 9900' 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 1613' 7.625" @ 5932' 5" @ 9895' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP Gels FL CL- FC SOL SD OIL MBT pH Ca+ Alk MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ CONNECTION GAS AVG PROPANE (C-3) @ @ CONNECTION GAS CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Canrig released at 2100 hrs. Begin rig down CANRIG PERSONNEL ON BOARD 2 DAILY COST $2048.50 REPORT BY D Muller