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Home My WebLink About216-155CAUTION: 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:Scott Warner Cc:Donna Ambruz Subject:RE: Kalotsa 2 AOGCC 10-403 325-689 PTD 216-155 Approved 11-17-25 Date:Tuesday, November 25, 2025 11:37:00 AM Approved. Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Scott Warner <Scott.Warner@hilcorp.com> Sent: Monday, November 24, 2025 3:55 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Cc: Donna Ambruz <dambruz@hilcorp.com> Subject: FW: Kalotsa 2 AOGCC 10-403 325-689 PTD 216-155 Approved 11-17-25 Bryan, I meant to include the step of pulling the capstring prior to any of the work beginning. I had the step to re-run the capstring as needed post work but did not include it in the pre sundry steps. Pre-Sundry Steps: 1. MIRU Cap string truck 2. Pull 3/8” cap string from 2615’ MD 3. RD cap string truck Thanks, Scott Warner Kenai – Operations Engineer Office: (907) 564-4506 Cell: (907) 830-8863 From: Donna Ambruz <dambruz@hilcorp.com> Sent: Monday, November 17, 2025 2:17 PM To: Scott Warner <Scott.Warner@hilcorp.com> Cc: Noel Nocas <Noel.Nocas@hilcorp.com> Subject: Kalotsa 2 AOGCC 10-403 325-689 PTD 216-155 Approved 11-17-25 FYI – Please distribute, as necessary. Thank you. Donna Ambruz Operations/Regulatory Tech KEN Asset Team Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 907.777.8305 - Direct dambruz@hilcorp.com The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently deletethis message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward 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. 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 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): 8,200' N/A Casing Collapse Structural Conductor 1,410psi Surface 4,790psi Intermediate Production 7,500psi 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 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 Other: Remedial Cement & N2 scott.warner@hilcorp.com 907-564-4506 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 Scott Warner 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 ADL0359242 / ADL0384372 / FEE-CIRI 216-155 50-133-20659-00-00 Hilcorp Alaska, LLC Proposed Pools: 3/8" TVD Burst 2,615' 8,430psi 1,379' Size 120' 1,379' MD See Schematic 2,890psi 6,890psi 120'120' 1,379' November 21, 2025 Cap String 8,184' Perforation Depth MD (ft): 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Ninilchik Unit Kalotsa 2CO 701C Same 7,841'4-1/2" 1124psi 8,184' 4,880' Length Baker Swell Packer & N/A 1,181 (MD) 1,181 (TVD) & N/A 7,857' 4,880' 4,645' Ninilchik Beluga-Tyonek Gas 16" 7-5/8" See Schematic m n P s 66 t N Form 10-403 Revised 06/2023 Approved application valid for 12 months from date of approval.Submit PDF to aogcc.permitting@alaska.gov Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2025.11.10 18:02:20 - 09'00' Noel Nocas (4361) 325-689 By Grace Christianson at 8:57 am, Nov 12, 2025 DSR-11/13/25 10-404 BJM 11/17/25 A.Dewhurst 17NOV25 X Submit post-squeeze CBL to AOGCC and obtain approval before perforating CT BOP test to 3000 psi Perforations above 1569' TVD not allowed without written approval from AOGCC. 11/17/25 Well Prognosis Well Name: Kalotsa 2 API Number: 50-133-20659-00-00 Current Status: Producing Gas Well Permit to Drill Number: 216-155 Regulatory Contact: Donna Ambruz (907) 777-8305 First Call Engineer: Scott Warner (907) 564-4506 (O) (907) 830-8863 (C) Second Call Engineer: Chad Helgeson (907) 777-8405 (O) (907) 229-4824 (C) Maximum Expected BHP: 1455 psi @ 3309 TVD Based on 0.44 psi/ft Existing perforations are depleted and not at original pressure Max. Potential Surface Pressure: 1124 psi Based on 0.1 psi/ft gas gradient to surface Applicable Frac Gradient: 0.816 psi/ft using 15.7 ppg EMW FIT at the 7-5/8 surface casing shoe (Average FIT across Paxton/Kalotsa/Dionne Structure) Shallowest Allowable Perf TVD: MPSP/(0.816-0.1) = 1124 psi / 0.716 = 1569 TVD Top of Applicable Gas Pool: 1423 MD/1423 TVD (Beluga-Tyonek) Well Status: Online Gas producer 625 mscfd, 4 bwpd, 38 psi FTP Recent SITP: 297 psi post perforations on 5/30/25 Brief Well Summary Kalotsa 2 was drilled and completed in March 2017, with initial perforations in the T12 sands testing at ~ 9.4 MMCFD. The well was brought online fulltime in November of 2018, came online at 15.0 MMCFD and declined steadily until March of 2020 when compression was brought online. In January 2021, the well started to load up with water. A plug was set and multiple Tyonek sands were perforated with minimal results. January of 2022, perforations were added in the Beluga sands which boosted production back up to ~2 mmscfd. Additional perforations were added in February 2025 without an increase in rate. BEL 120-BEL 73 perforations were added in May 2025 which increased rate by ~350 mcfd but SITPs never exceeded 297 psi indicating those zones were depleted and not at original pressure. The objective of this sundry is to perform a remedial cement squeeze to isolate additional zones behind pipe and add perforations to the Upper Beluga sands to increase the rate. Notes Regarding Wellbore Condition Inclination o Max inclination = 25.3° at 3689 MD o Max DLS: 4.12° @ 2442 MD Min ID o 3.820 4282 MD Caliper in 2021 showed slight restriction Recent Tags o 5/24/25: Eline perforated 3307 2660 with 2-3/4 guns o 5/23/25: SL ran 3.75 GR and SD @ 3764 SLM. Ran 2-7/8 x 20 dmy guns and SD @ 4498 SLM Cement bond log: 2/6/17 TOC ~2610 MD. Free pipe identified at 2540 MD Pre Sundry Slickline Procedure: 1. MIRU slickline unit and pressure control equipment 2. PT lubricator to 250 psi low / 2,000 psi high 3. Drift and tag Well Prognosis a. Last tag with slickline was @ 4498 SLM b. Drift w/ 3.8 minimum GR to verify a plug can be set at ~2540 MD 4. RDMO slickline unit E-line Procedure: 1. MIRU E-line and pressure control equipment 2. PT lubricator to 250 psi low / 2,000 psi high 3. RIH w/ 4.5 Composite Bridge Plug and set at ~ 2540 MD a. Do not set plug across collars b. Casing tally shows collars at ~2520 & 2558 MD 4. MU and RIH w/ casing punch 5. Punch 4.5 casing @ the following depths: a. 2530 2535 MD b. 1245-1250 MD (Packer is at 1181 MD) 6. RDMO Eline 4-1/2 Remedial Cementing and Coil Tubing Procedure: 1. MIRU CTU and provide AOGCC 24 hour notice for BOP Test. 2. Conduct BOP test 250 psi low, 3000 psi high. 3. RIH with cement retainer on 1.75 coil tubing a. Tag CBP for depth control 4. Prior to setting retainer, circulate a tubing volume with 6% KCL to ensure all gas is out of wellbore a. 4-1/2 tubing = 0.0152 bbl/ft b. 2525 x 0.0152 bbl/ft = ~39 bbls 5. Set retainer @ + 2525 MD and establish circulation with 6% KCL through cement retainer & casing punches up the 4-1/2 x 6-3/4 open hole annulus a. If 1:1 returns are established, proceed to step 6 otherwise contact OE before moving on b. Cement volume will be adjusted based on circulation rate and pressure c. Pending initial circulation rates, pump down the coil backside to establish injectivity through upper squeeze holes at ~1245-1250 MD 6. RU cement truck, PT lines 250 psi low, 3000 psi high 7. Mix and pump ~12.5 ppg cement down coil through the retainer, taking returns up through the upper squeeze holes and the backside of the coil tubing 8. Planned TOC in 4-1/2 x 6-3/4 open hole annulus ~1250 MD a. 6-3/4 hole x 4-1/2 casing = 0.0246 bbl/ft b. 1290 x 0.0246 bbl/ft = 31.7 bbls c. 31.7 bbls cement in 4-1/2 x 6-3/4 open hole annulus d. 0.2 bbls cement in 4-1/2 tubing below retainer e. Total ~32 bbls cement 9. Unsting from retainer 10. TOOH to upper squeeze holes Contingency: Pending results of the above squeeze operations (if not full returns), establish injectivity down backside of coil through upper squeeze holes and/or lay in 1-2 bbls of cement across upper squeeze holes a. Pending injectivity test, pump 1-2 bbls of 12.5 ppg cement down the coil while holding pressure on the backside/coil tubing x casing annulus b. If injectivity cant be established, lay in 1-2 bbls across upper squeeze holes @ 1245-1250 MD 11. PU to ~1100 and circulate clean a. May need to reverse circulate depending on how much cement was pumped away during squeeze operations 12. TOOH and WOC cement Assume 40% washout, increase cement volume to 43.3 bbls Well Prognosis 13. PU motor and mill 14. Drill out cement, retainer, and composite plug a. Cleanout to CIBP @ 4880 MD or as deep as possible 15. POOH 16. MIRU E-line and pressure control equipment 17. PT lubricator to 250 psi low / 2,000 psi high 18. Log CBL and send to AOGCC a. Repeat suicide squeeze operation until cement is confirmed above proposed top perf or unable to squeeze/get circulation 19. Once CBL has confirmed good TOC, RDMO eline 20. Coil blow well dry with N2 trapping ~1200 psi on well for upcoming perfs. Verify pressure with OE prior to rigging down. 21. RDMO CT E-line Perf Procedure: 1. MIRU E-line and pressure control equipment 2. PT lubricator to 250 psi low /2,000 psi high 3. RIH and perforate BEL 20 BEL 100 sands from bottom up: Zone Top MD Btm MD Top TVD Btm TVD Footage BEL 5 1,445' 1,455' 1,445' 1,455' 10' BEL 10 1,474' 1,480' 1,474' 1,480' 6' BEL 13 1,507' 1,513' 1,507' 1,513' 6' BEL 15 1,527' 1,533' 1,527' 1,533' 6' BEL 16 1,552' 1,558' 1,552' 1,558' 6' Will not perforate above 1569 TVD without further discussion with AOGCC and pending rate/pressure results from perfs below BEL 20 1,604' 1,609' 1,604' 1,609' 5' BEL 25 1,653' 1,659' 1,653' 1,659' 6' BEL 37 1,711' 1,717' 1,711' 1,717' 6' BEL 38 1,725' 1,733' 1,725' 1,733' 8' BEL 41 1,794' 1,798' 1,794' 1,798' 4' BEL 41 1,804' 1,809' 1,803' 1,808' 5' BEL 44 1,834' 1,839' 1,833' 1,838' 5' BEL 44 1,841' 1,845' 1,840' 1,844' 4' BEL 45 1,859' 1,865' 1,858' 1,864' 6' BEL 48 1,942' 1,951' 1,940' 1,949' 9' BEL 49 2,000' 2,006' 1,997' 2,002' 6' BEL 49 2,019' 2,025' 2,015' 2,021' 6' BEL 50 2,038' 2,042' 2,034' 2,037' 4' BEL 50 2,055' 2,060' 2,050' 2,055' 5' BEL 51 2,076' 2,080' 2,070' 2,074' 4' BEL 51 2,087' 2,091' 2,081' 2,085' 4' BEL 52 2,118' 2,123' 2,111' 2,116' 5' BEL 52 2,125' 2,129' 2,118' 2,121' 4' Perfs shallower than 1569' TVD not allowed without written approval from AOGCC. 1569 TVD Well Prognosis BEL 52 2,141' 2,147' 2,133' 2,139' 6' BEL 53 2,175' 2,181' 2,166' 2,171' 6' BEL 54 2,205' 2,211' 2,194' 2,200' 6' BEL 55 2,263' 2,268' 2,249' 2,254' 5' BEL 56 2,301' 2,307' 2,285' 2,291' 6' BEL 58A 2,393' 2,399' 2,371' 2,377' 6' BEL 60 2,505' 2,511' 2,473' 2,479' 6' BEL 65 2,563' 2,569' 2,526' 2,531' 6' BEL 72 2,615' 2,620' 2,573' 2,578' 5' BEL 90 2,913' 2,918' 2,846' 2,851' 5' BEL 91 2,970' 2,976' 2,899' 2,904' 6' BEL 95 3,183' 3,188' 3,095' 3,100' 5' BEL 97 3,243' 3,249' 3,151' 3,156' 6' BEL 100 3,415' 3,421' 3,309' 3,314' 6' a. Proposed perfs are also shown on the proposed schematic in red font b. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation c. Use Gamma/CCL to correlate d. Record Tubing pressures before and after each perforating run at 5 min, 10 min, and 15 min intervals post perf shot (if using switched guns, wait 10 min between shots) e. Pending well production, all perf intervals may not be completed f. If any zone produces sand and/or water or needs isolated, RIH and set plug above the perforations OR patch across the perforations g. If necessary, use nitrogen to pressure up well during perforating or to depress water prior to setting a plug above perforations 5. RDMO a. If necessary, re- run cap string to aid with water production if encountered post perforating. Attachments: 1. Current Schematic 2. Proposed Schematic 3. CTU BOP Diagram 4. Standard Well Procedure N2 Operations Updated by DMA 06-03-25 SCHEMATIC Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PBTD = 4,880 / PBTVD = 4,645 TD = 8,200 / TVD = 7,857 RKB = 18 CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16 Conductor Driven to Set Depth 84 J-55 Weld 15.01 Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875 Surf 1,379 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958 Surf 8,184 JEWELRY DETAIL No. Depth MD Depth TVD ID Item 1 1,181 1,181 3.958 Baker Swell Packer 2 4,880 4,645 CIBP Set on 04/13/21 3 4,949 4,708 3.52 Collapsed casing (3/13/21 caliper) 4 6,744 6,402 <1.75 Unknown restriction / damage (3/13/21 tag) PERFORATION DETAIL Sands Top MD Btm MD Top TVD Btm TVD FT Date Status BEL 73 2,643' 2,660' 2,598' 2,614' 17' 5/30/2025 Open BEL 74 2,704' 2,714' 2,654' 2,663' 10' 5/30/2025 Open BEL 80 2,768' 2,774' 2,713' 2,718' 6' 5/30/2025 Open BEL 82 2,824' 2,830' 2,764' 2,770' 6' 5/30/2025 Open BEL 83 2,844 2,858' 2,783' 2,796' 10' 5/30/2025 Open BEL 92 3,043' 3,060' 2,966' 2,982' 17' 5/25/2025 Open BEL 94 3,130' 3,136' 3,047' 3,052' 6' 5/25/2025 Open BEL 95 3,166' 3,174' 3,080' 3,087' 8' 5/25/2025 Open BEL 98 3,299' 3,307' 3,202' 3,210' 8' 5/25/2025 Open BEL 99 3,313' 3,319' 3,215' 3,221' 6' 5/24/2025 Open BEL 100 3,369' 3,379' 3,267' 3,276' 10' 5/24/2025 Open BEL 115 3,502' 3,508' 3,389' 3,394' 6' 5/24/2025 Open BEL 120 3,568' 3,576' 3,449' 3,456' 8' 5/24/2025 Open BEL 134 3,695 3,709 3,564 3,577 14 01/21/22 Open BEL 135 3,769 3,773 3,631 3,635 4 01/20/22 Open T3 3,996 4,006 3,838 3,847 10 02/13/25 Open T3 4,079' 4,088' 3,914 3,923 9 4/14/2021 Open T5U 4,135' 4,141' 3,965 3,971 6 4/14/2021 Open T5L 4,153' 4,163' 4,163 3,982 10 4/13/2021 Open T5A 4,192 4,196 4,017 4,021 4 8/24/2021 Open T5A 4,208 4,214 4,032 4,037 6 02/13/25 Open T6 4,278 4,292 4,096 4,108 14 02/13/25 Open T6U 4,293 4,300 4,110 4,116 7 6/8/2021 Open T6L 4,334 4,338 4,147 4,150 4 8/24/2021 Open T6A 4,433' 4,445' 4,237' 4,248' 12 8/24/2021 Open T6B 4,459 4,461 4,261 4,263 2 8/24/2021 Open T7 4,408 4,414 4,214 4,220 6 02/13/25 Open T8 4,516 4,522 4,313 4,318 6 02/13/25 Open T8 4,526 4,530 4,322 4,326 4 6/8/2021 Open T9A 4,618' 4,623' 4,405 4,411 5 4/14/2021 Open T10 4,633' 4,636' 4,419 4,423 3 4/13/2021 Open T10A 4,680 4,685 4,462 4,467 5 6/8/2021 Open T10B 4,721 4,723 4,500 4,502 2 6/8/2021 Open T10B 4,726 4,730 4,504 4,508 4 6/8/2021 Open T12 4,937 4,941 4,697 4,701 4 3/3/2017 Isolated 4,949 4,974 4,708 4,731 25 3/3/2017 Isolated 4,994 5,013 4,749 4,767 19 3/3/2017 Isolated T17 5,523' 5,543' 5,235 5,254 20 4/10/2021 Isolated Cement Details 7-5/8 Cement Job: 9-7/8 hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2 Cement Job: 6-3/4 hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,610 MD. 1 16 7-5/8 4-1/2 T3 TOC @ ~2,610 (2/6/17 CBL) 2 T17 T12 3 4 BEL 134 BEL 135 T5 T6 T7 T8 T9 T10 3/8 Capillary String (06/02/25) Top Btm 0 2,615 BEL 73 - 92 BEL 94 - 98 BEL 99 - 120 Updated by SRW 11-6-2025 PROPOSED SCHEMATIC Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PBTD = 4,880 / PBTVD = 4,645 TD = 8,200 / TVD = 7,857 RKB = 18 CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16 Conductor Driven to Set Depth 84 J-55 Weld 15.01 Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875 Surf 1,379 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958 Surf 8,184 JEWELRY DETAIL No. Depth MD Depth TVD ID Item 1 1,181 1,181 3.958 Baker Swell Packer 2 4,880 4,645 CIBP Set on 04/13/21 3 4,949 4,708 3.52 Collapsed casing (3/13/21 caliper) 4 6,744 6,402 <1.75 Unknown restriction / damage (3/13/21 tag) PERFORATION DETAIL contd on pg. 2 Sands Top MD Btm MD Top TVD Btm TVD FT Date Status BEL 5 ±1,445' ±1,455' ±1,445' ±1,455' ±10' TBD Proposed BEL 10 ±1,474' ±1,480' ±1,474' ±1,480' ±6' TBD Proposed BEL 13 ±1,507' ±1,513' ±1,507' ±1,513' ±6' TBD Proposed BEL 15 ±1,527' ±1,533' ±1,527' ±1,533' ±6' TBD Proposed BEL 16 ±1,552' ±1,558' ±1,552' ±1,558' ±6' TBD Proposed BEL 20 ±1,604' ±1,609' ±1,604' ±1,609' ±5' TBD Proposed BEL 25 ±1,653' ±1,659' ±1,653' ±1,659' ±6' TBD Proposed BEL 37 ±1,711' ±1,717' ±1,711' ±1,717' ±6' TBD Proposed BEL 38 ±1,725' ±1,733' ±1,725' ±1,733' ±8' TBD Proposed BEL 41 ±1,794' ±1,798' ±1,794' ±1,798' ±4' TBD Proposed BEL 41 ±1,804' ±1,809' ±1,803' ±1,808' ±5' TBD Proposed BEL 44 ±1,834' ±1,839' ±1,833' ±1,838' ±5' TBD Proposed BEL 44 ±1,841' ±1,845' ±1,840' ±1,844' ±4' TBD Proposed BEL 45 ±1,859' ±1,865' ±1,858' ±1,864' ±6' TBD Proposed BEL 48 ±1,942' ±1,951' ±1,940' ±1,949' ±9' TBD Proposed BEL 49 ±2,000' ±2,006' ±1,997' ±2,002' ±6' TBD Proposed BEL 49 ±2,019' ±2,025' ±2,015' ±2,021' ±6' TBD Proposed BEL 50 ±2,038' ±2,042' ±2,034' ±2,037' ±4' TBD Proposed BEL 50 ±2,055' ±2,060' ±2,050' ±2,055' ±5' TBD Proposed BEL 51 ±2,076' ±2,080' ±2,070' ±2,074' ±4' TBD Proposed BEL 51 ±2,087' ±2,091' ±2,081' ±2,085' ±4' TBD Proposed BEL 52 ±2,118' ±2,123' ±2,111' ±2,116' ±5' TBD Proposed BEL 52 ±2,125' ±2,129' ±2,118' ±2,121' ±4' TBD Proposed BEL 52 ±2,141' ±2,147' ±2,133' ±2,139' ±6' TBD Proposed BEL 53 ±2,175' ±2,181' ±2,166' ±2,171' ±6' TBD Proposed BEL 54 ±2,205' ±2,211' ±2,194' ±2,200' ±6' TBD Proposed BEL 55 ±2,263' ±2,268' ±2,249' ±2,254' ±5' TBD Proposed BEL 56 ±2,301' ±2,307' ±2,285' ±2,291' ±6' TBD Proposed BEL 58A ±2,393' ±2,399' ±2,371' ±2,377' ±6' TBD Proposed BEL 60 ±2,505' ±2,511' ±2,473' ±2,479' ±6' TBD Proposed BEL 65 ±2,563' ±2,569' ±2,526' ±2,531' ±6' TBD Proposed BEL 72 ±2,615' ±2,620' ±2,573' ±2,578' ±5' TBD Proposed BEL 73 2,643' 2,660' 2,598' 2,614' 17' 5/30/2025 Open BEL 74 2,704' 2,714' 2,654' 2,663' 10' 5/30/2025 Open BEL 80 2,768' 2,774' 2,713' 2,718' 6' 5/30/2025 Open BEL 82 2,824' 2,830' 2,764' 2,770' 6' 5/30/2025 Open BEL 83 2,844 2,858' 2,783' 2,796' 10' 5/30/2025 Open BEL 90 ±2,913' ±2,918' ±2,846' ±2,851' ±5' TBD Proposed Cement Details 7-5/8 Cement Job: 9-7/8 hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2 Cement Job: 6-3/4 hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,610 MD. 1 16 7-5/8 4-1/2 T3 TOC @ ~2,610 (2/6/17 CBL) 2 T17 T12 3 4 BEL 134 BEL 135 T5 T6 T7 T8 T9 T10 BEL 73 - 92 BEL 94 - 98 BEL 99 - 120 Updated by SRW 11-6-2025 PROPOSED SCHEMATIC Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PERFORATION DETAIL contd from pg. 1 Sands Top MD Btm MD Top TVD Btm TVD FT Date Status BEL 91 ±2,970' ±2,976' ±2,899' ±2,904' ±6' TBD Proposed BEL 92 3,043' 3,060' 2,966' 2,982' 17' 5/25/2025 Open BEL 94 3,130' 3,136' 3,047' 3,052' 6' 5/25/2025 Open BEL 95 3,166' 3,174' 3,080' 3,087' 8' 5/25/2025 Open BEL 95 ±3,183' ±3,188' ±3,095' ±3,100' ±5' TBD Proposed BEL 97 ±3,243' ±3,249' ±3,151' ±3,156' ±6' TBD Proposed BEL 98 3,299' 3,307' 3,202' 3,210' 8' 5/25/2025 Open BEL 99 3,313' 3,319' 3,215' 3,221' 6' 5/24/2025 Open BEL 100 3,369' 3,379' 3,267' 3,276' 10' 5/24/2025 Open BEL 100 ±3,415' ±3,421' ±3,309' ±3,314' ±6' TBD Proposed BEL 115 3,502' 3,508' 3,389' 3,394' 6' 5/24/2025 Open BEL 120 3,568' 3,576' 3,449' 3,456' 8' 5/24/2025 Open BEL 134 3,695 3,709 3,564 3,577 14 01/21/22 Open BEL 135 3,769 3,773 3,631 3,635 4 01/20/22 Open T3 3,996 4,006 3,838 3,847 10 02/13/25 Open T3 4,079' 4,088' 3,914 3,923 9 4/14/2021 Open T5U 4,135' 4,141' 3,965 3,971 6 4/14/2021 Open T5L 4,153' 4,163' 4,163 3,982 10 4/13/2021 Open T5A 4,192 4,196 4,017 4,021 4 8/24/2021 Open T5A 4,208 4,214 4,032 4,037 6 02/13/25 Open T6 4,278 4,292 4,096 4,108 14 02/13/25 Open T6U 4,293 4,300 4,110 4,116 7 6/8/2021 Open T6L 4,334 4,338 4,147 4,150 4 8/24/2021 Open T6A 4,433' 4,445' 4,237' 4,248' 12 8/24/2021 Open T6B 4,459 4,461 4,261 4,263 2 8/24/2021 Open T7 4,408 4,414 4,214 4,220 6 02/13/25 Open T8 4,516 4,522 4,313 4,318 6 02/13/25 Open T8 4,526 4,530 4,322 4,326 4 6/8/2021 Open T9A 4,618' 4,623' 4,405 4,411 5 4/14/2021 Open T10 4,633' 4,636' 4,419 4,423 3 4/13/2021 Open T10A 4,680 4,685 4,462 4,467 5 6/8/2021 Open T10B 4,721 4,723 4,500 4,502 2 6/8/2021 Open T10B 4,726 4,730 4,504 4,508 4 6/8/2021 Open T12 4,937 4,941 4,697 4,701 4 3/3/2017 Isolated 4,949 4,974 4,708 4,731 25 3/3/2017 Isolated 4,994 5,013 4,749 4,767 19 3/3/2017 Isolated T17 5,523' 5,543' 5,235 5,254 20 4/10/2021 Isolated 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. 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: 6/18/2025 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20250618 Well API #PTD #Log Date Log Company Log Type AOGCC E-Set# AN 07RD2 50733200120200 195113 6/1/2025 AK E-LINE LDL AN 24RD 50733202850100 207170 6/1/2025 AK E-LINE LDL BRU 221-24 50283202020000 225027 5/29/2025 AK E-LINE CBL KALOTSA 10 50133207320000 224147 5/21/2025 AK E-LINE Perf KALOTSA 2 50133206590000 216155 5/25/2025 AK E-LINE Perf PAXTON 11 50133207040000 221114 5/27/2025 AK E-LINE Perf PAXTON 11 50133207040000 221114 5/26/2025 AK E-LINE Perf PBU 06-12C 50029204560300 225022 5/17/2025 HALLIBURTON RBT-COILFLAG PBU 15-32C 50029224620300 217104 5/27/2025 HALLIBURTON RBT PBU D-01B 50029200540200 224155 5/18/2025 BAKER MRPM PBU D-01B 50029200540200 224155 5/18/2025 HALLIBURTON RBT-COILFLAG PBU H-18A 50029208800100 224011 5/14/2025 BAKER MRPM PBU H-18A 50029208800100 224011 5/14/2025 HALLIBURTON RBT-COILFLAG PBU L-109 50029230460000 201201 5/24/2025 HALLIBURTON IPROF PBU L-115 50029230350000 201140 5/19/2025 HALLIBURTON IPROF PBU L-117 50029230390000 201167 5/30/2025 HALLIBURTON IPROF PBU N-07B 50029201370200 223122 6/7/2025 HALLIBURTON RBT PBU S-100A 50029229620100 224083 5/26/2025 HALLIBURTON PPROF-LDL PBU Z-34 50029234690000 212061 5/17/2025 HALLIBURTON IPROF-LDL Please include current contact information if different from above. T40566 T40567 T40568 T40569 T40570 T40571 T40571 T40572 T40573 T40574 T40574 T40575 T40575 T40576 T40577 T40578 T40579 T40580 T40581 KALOTSA 2 50133206590000 216155 5/25/2025 AK E-LINE Perf Gavin Gluyas Digitally signed by Gavin Gluyas Date: 2025.06.18 12:03:53 -08'00' 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: Install Cap String 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 8,200 feet 4,880 feet true vertical 7,857 feet N/A feet Effective Depth measured 4,880 feet 1,181 feet true vertical 4,645 feet 1,181 feet Perforation depth Measured depth See Schematic feet True Vertical depth See Schematic feet Tubing (size, grade, measured and true vertical depth)Cap String 3/8" 2,615' MD 2,573' TVD 1,181 MD Packers and SSSV (type, measured and true vertical depth)Baker Swell Pkr 1,181 TVD SSSV: NA 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: Scott Warner, Operations Engineer 325-278 Sr Pet Eng:Sr Pet Geo:Sr Res Eng: WINJ WAG 522 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 scott.warner@hilcorp.com 907-564-4506 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 120' 0 0958 0 780 42 measured TVD 4-1/2" STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 216-155 50-133-20659-00-00 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: ADL0359242 / ADL0384372 / FEE-CIRI Ninilchik / Beluga-Tyonek Gas Ninilchik Unit Kalotsa 2 Plugs Junk measured Length Production Liner 8,184' Casing Structural 7,841'8,184' 120'Conductor Surface Intermediate 16" 7-5/8" 120' 1,379' 7,500psi 2,890psi 6,890psi 8,430psi 1,379'1,379' Burst Collapse 1,410psi 4,790psi 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 Grace Christianson at 4:35 pm, Jun 16, 2025 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2025.06.16 15:02:48 - 08'00' Noel Nocas (4361) RBDM SJSB 061825 BJM 9/23/25 DSR-6/18/25 Page 1/1 Well Name: NINU Kalotsa 02 Report Printed: 6/3/2025WellViewAdmin@hilcorp.com Alaska Weekly Report - Operations Wellbore API/UWI:50-133-20659-00-00 Field Name:Ninilchik State/Province:ALASKA Permit to Drill (PTD) #:216-155 Sundry #:325-278 Rig Name/No: Jobs Actual Start Date:4/29/2025 End Date: Report Number 1 Report Start Date 5/21/2025 Report End Date 5/21/2025 Last 24hr Summary MIRU Hilcorp capillary tubing unit. Pull 4500' of 3/8" SS tubing. 1400 lbs pick up weight clean. Foot valve recovered. Upon visual inspection found no discrpancies within string or foot valve. Report Number 2 Report Start Date 5/23/2025 Report End Date 5/23/2025 Last 24hr Summary PTW/PJSM, MIRU PWL, PT250/2000. Ran 3.75" G-ring, SD @ 3764' SLM, 3782' KB. Ran 2 7/8"x20' dmy guns, SD @ 4498' SLM, 4516' KB. Report Number 3 Report Start Date 5/24/2025 Report End Date 5/25/2025 Last 24hr Summary PTW/PJSM. MIRU AK E-line. P-test 250/2,000 psi. Perforate BEL 120 Sand (3,568' - 3,576'), BEL 115 Sand (3,502' - 3,508'), BEL 100 Sand (3,369' - 3,379'), BEL 99 Sand (3,313' - 3,319') with well SI. SDFN and turn well over to Prod Ops to flow test. Report Number 4 Report Start Date 5/25/2025 Report End Date 5/26/2025 Last 24hr Summary PTW/PJSM. Perforating with AK E-line. Perforate BEL 98 Sand (3,299' - 3,307'), BEL 95 Sand (3,166' - 3,174'), BEL 94 Sand (3,130' - 3,136'), BEL 92 Sand (3,043' - 3,060') with well SI. Log well with GPT to 4,400' with well flowing. RDMO. Report Number 5 Report Start Date 5/30/2025 Report End Date 5/31/2025 Last 24hr Summary PTW/PJSM. MIRU Yellow Jacket E-line. P-test 250/2,000 psi. Perforate BEL 83 Sand (2,844' - 2,858'), BEL 82 Sand (2,824' - 2,830'), BEL 80 Sand (2,768' - 2,774'), BEL 74 Sand (2,704' - 2,714'), BEL 73 Sand (2,643' - 2,660') with well SI. Log well with GPT to 4,400' with well flowing. RDMO. Report Number 6 Report Start Date 6/2/2025 Report End Date 6/3/2025 Last 24hr Summary MIRU Hak capillary tubing truck. Load 3/8" spool into craddle. Stab pipe through injector head and pack off assembly. Install foot valve (opening pressure 1800 psi at surface). Stab on well. Pressure test pack off assembly 250/3500 psi. Good test. Open well. RIH to 2750'. 600 lbs RIH weight. PIck up 900 lbs. Set string at 2615'. Lock down static packoff. Apply 3000 psi to dynamic packoff. Install 3/8" tubing hanger. Strip off injector head and land on back deck. Rig down Cap truck and set spool next to soap skid. Perforate BEL 83 Sand (2,844' - 2,858'), BEL 82 Sand (2,824' - 2,830'), BEL 80 Sand (2,768' - 2,774'),,p BEL 74 Sand (2,704' - 2,714'), BEL 73 Sand (2,643' - 2,660') with well SI Perforate BEL 120 Sand (3,568' - 3,576'), BEL 115 Sand (3,502' - 3,508'), BEL 100 Sand (3,369' - 3,379'), BEL 99 Sand (3,313' - 3,319') with Perforate BEL 98 Sand (3,299' - 3,307'), BEL 95 Sand (3,166' - 3,174'), BEL 94 Sand (3,130' - 3,136'), BEL 92 Sand (3,043' - 3,060') with well SI Updated by DMA 06-03-25 SCHEMATIC Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PBTD = 4,880’ / PBTVD = 4,645’ TD = 8,200’ / TVD = 7,857’ RKB = 18’ CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16” Conductor – Driven to Set Depth 84 J-55 Weld 15.01” Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875” Surf 1,379’ 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958” Surf 8,184’ JEWELRY DETAIL No. Depth MD Depth TVD ID Item 1 1,181’ 1,181’ 3.958” Baker Swell Packer 2 4,880’ 4,645’ CIBP Set on 04/13/21 3 4,949’ 4,708’ 3.52” Collapsed casing (3/13/21 caliper) 4 6,744’ 6,402’ <1.75” Unknown restriction / damage (3/13/21 tag) PERFORATION DETAIL Sands Top MD Btm MD Top TVD Btm TVD FT Date Status BEL 73 2,643' 2,660' 2,598' 2,614' 17' 5/30/2025 Open BEL 74 2,704' 2,714' 2,654' 2,663' 10' 5/30/2025 Open BEL 80 2,768' 2,774' 2,713' 2,718' 6' 5/30/2025 Open BEL 82 2,824' 2,830' 2,764' 2,770' 6' 5/30/2025 Open BEL 83 2,844 2,858' 2,783' 2,796' 10' 5/30/2025 Open BEL 92 3,043' 3,060' 2,966' 2,982' 17' 5/25/2025 Open BEL 94 3,130' 3,136' 3,047' 3,052' 6' 5/25/2025 Open BEL 95 3,166' 3,174' 3,080' 3,087' 8' 5/25/2025 Open BEL 98 3,299' 3,307' 3,202' 3,210' 8' 5/25/2025 Open BEL 99 3,313' 3,319' 3,215' 3,221' 6' 5/24/2025 Open BEL 100 3,369' 3,379' 3,267' 3,276' 10' 5/24/2025 Open BEL 115 3,502' 3,508' 3,389' 3,394' 6' 5/24/2025 Open BEL 120 3,568' 3,576' 3,449' 3,456' 8' 5/24/2025 Open BEL 134 3,695’ 3,709’ 3,564’ 3,577’ 14’ 01/21/22 Open BEL 135 3,769’ 3,773’ 3,631’ 3,635’ 4’ 01/20/22 Open T3 3,996’ 4,006’ 3,838’ 3,847’ 10’ 02/13/25 Open T3 4,079' 4,088' 3,914’ 3,923’ 9 4/14/2021 Open T5U 4,135' 4,141' 3,965’ 3,971’ 6 4/14/2021 Open T5L 4,153' 4,163' 4,163‘ 3,982’ 10 4/13/2021 Open T5A 4,192’ 4,196’ 4,017’ 4,021’ 4‘ 8/24/2021 Open T5A 4,208’ 4,214’ 4,032’ 4,037’ 6’ 02/13/25 Open T6 4,278’ 4,292’ 4,096’ 4,108’ 14’ 02/13/25 Open T6U 4,293’ 4,300’ 4,110’ 4,116’ 7‘ 6/8/2021 Open T6L 4,334’ 4,338’ 4,147’ 4,150’ 4‘ 8/24/2021 Open T6A 4,433' 4,445' 4,237' 4,248' 12‘ 8/24/2021 Open T6B 4,459’ 4,461’ 4,261’ 4,263’ 2‘ 8/24/2021 Open T7 4,408’ 4,414’ 4,214’ 4,220’ 6’ 02/13/25 Open T8 4,516’ 4,522’ 4,313’ 4,318’ 6’ 02/13/25 Open T8 4,526’ 4,530’ 4,322’ 4,326’ 4‘ 6/8/2021 Open T9A 4,618' 4,623' 4,405‘ 4,411’ 5 4/14/2021 Open T10 4,633' 4,636' 4,419’ 4,423’ 3 4/13/2021 Open T10A 4,680 4,685’ 4,462’ 4,467 5‘ 6/8/2021 Open T10B 4,721’ 4,723’ 4,500’ 4,502’ 2‘ 6/8/2021 Open T10B 4,726’ 4,730’ 4,504’ 4,508’ 4‘ 6/8/2021 Open T12 4,937’ 4,941’ 4,697’ 4,701’ 4 3/3/2017 Isolated 4,949’ 4,974’ 4,708’ 4,731’ 25 3/3/2017 Isolated 4,994’ 5,013’ 4,749’ 4,767’ 19 3/3/2017 Isolated T17 5,523' 5,543' 5,235’ 5,254’ 20 4/10/2021 Isolated Cement Details 7-5/8” Cement Job: 9-7/8” hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2” Cement Job: 6-3/4” hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,610’ MD. 1 16” 7-5/8” 4-1/2” T3 TOC @ ~2,610’ (2/6/17 CBL) 2 T17 T12 3 4 BEL 134 BEL 135 T5 T6 T7 T8 T9 T10 3/8” Capillary String (06/02/25) Top Btm 0’ 2,615’ BEL 73 - 92 BEL 94 - 98 BEL 99 - 120 From:McLellan, Bryan J (OGC) To:Scott Warner Subject:RE: [EXTERNAL] RE: Kalotsa 2 AOGCC 10-403 325-278 PTD 216-155 Approved 05-13-25 Date:Thursday, May 29, 2025 9:20:00 AM Attachments:image002.png image003.png Scott, I agree with your formation fracture gradient analysis. I think that 15.7 ppg is a conservative estimate of frac pressure at the shoe and the deeper zones appear to be depleted to some extent. Hilcorp has approval to perforate the additional intervals listed in your May 27 email below. Thanks for providing the supporting data. Regards Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Scott Warner <scott.warner@hilcorp.com> Sent: Wednesday, May 28, 2025 3:28 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: RE: [EXTERNAL] RE: Kalotsa 2 AOGCC 10-403 325-278 PTD 216-155 Approved 05-13-25 Bryan, We tagged 4,516’ KB with slickline on Friday, the 23rd. A GPT run on E-line on Sunday, the 25th, still indicated cooling below 4,400’. To avoid tagging the gamma/pressure/temp tool at the bottom after slickline had already tagged at 4,516’, we decided to only log down to 4,400’. As I mentioned in my response to your email sent on May 7, I’m hesitant to place cement on the fill, as the pressure/temperature log suggests there is still contribution from the sand below. The shallowest allowable perforation calculations have been based on the FIT’s conducted on each individual sundried well. As the Kalotsa structure has been developed, deeper and higher-angle wells have been drilled, necessitating higher FIT’s to ensure well integrity, design appropriate casing depths, verify kick tolerance, confirm the formation can withstand higher mud weights, etc. The initial Kalotsa wells did not require such stringent tests, hence a lower FIT was performed. Over time, the structure has demonstrated its ability to withstand stronger FITs and one LOT. Well FIT LOT TVD Kalotsa 1 14.3 N/A 1360 Kalotsa 2 14.2 N/A 1379 Kalotsa 3 14.3 N/A 1316 Kalotsa 4 13.5 N/A 1410 Kalotsa 5 13.5 N/A 1071 Kalotsa 6 12.5 N/A 1258 Kalotsa 7 19.9 21.78 1415 Kalotsa 8 16.6 N/A 1666 Kalotsa 9 18.7 N/A 1369 Kalotsa 10 20.3 N/A 1408 Given this data, the FIT test used for Kalotsa 2 is very conservative. The average FIT test across the structure is 15.7 ppg EMW, indicating that the shallowest allowable perforation would be at 2472’ TVD. Considering the increasing FIT pressures due to more complex wells and the LOT showing a fracture pressure of 21.78 ppg EMW, using 15.7 ppg EMW remains conservative and would permit all perforations to be added. Thanks, Scott Warner Kenai – Operations Engineer CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. Office: (907) 564-4506 Cell: (907) 830-8863 From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Sent: Tuesday, May 27, 2025 3:45 PM To: Scott Warner <scott.warner@hilcorp.com> Subject: [EXTERNAL] RE: Kalotsa 2 AOGCC 10-403 325-278 PTD 216-155 Approved 05-13-25 You can dump bail 25’ of cement on top of the plug at 4880’ and that will shift up the depth from which to base the new shallowest perf calcs enough to add all the additional perfs in the table below. Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Scott Warner <scott.warner@hilcorp.com> Sent: Tuesday, May 27, 2025 1:41 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: Kalotsa 2 AOGCC 10-403 325-278 PTD 216-155 Approved 05-13-25 Bryan, Over the weekend, we perforated up to the approved interval at 2,800’ TVD. We would like to continue perforating, as there was no gain or loss in rate during the operation. The maximum SITP observed while perforating was 240 psi. This is similar to the lower BHP pressure seen on Kalotsa 10, which was recently approved, and suggests that intervals below the proposed perforation depths are no longer at original reservoir pressure. Using a gas gradient of 0.1 psi/ft, the SITP of 240 psi corresponds to an estimated BHP of approximately 764 psi at the T-17 depth—the deepest currently open TVD interval. This is significantly lower than the 0.44 psi/ft gradient currently being used to calculate the shallowest allowable perforation, which is limiting our ability to perforate additional depths. We would like to proceed with the following perforations, which were included in the original sundry: Thanks, Scott Warner Kenai – Operations Engineer Office: (907) 564-4506 Cell: (907) 830-8863 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. CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Sent: Monday, May 12, 2025 5:00 PM To: Scott Warner <scott.warner@hilcorp.com> Subject: RE: [EXTERNAL] Kalotsa 2 (PTD 216-155) perf sundry Scott, For now I’ll limit the shallowest perf depth on the existing sundry application. You can apply for shallower perfs after installing a cement plug. Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Scott Warner <scott.warner@hilcorp.com> Sent: Friday, May 9, 2025 1:53 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: RE: [EXTERNAL] Kalotsa 2 (PTD 216-155) perf sundry Bryan, On 2/13/25 when we were perforating the well was shut in and built up/stabilized at 215 psi which is our actual maximum expected surface pressure from open perfs below. With that said we can use the newest proposed perfs as the maximum expected pressure which is the BEL 120 at 3449’ TVD. Maximum Expected BHP: 1517 psi @ 3449’ TVD Based on 0.44 psi/ft (Lowest proposed perforations- BEL 120) Max. Potential Surface Pressure: 1482 psi Based on 0.01 psi/ft gas gradient to surface Applicable Frac Gradient: 0.74 psi/ft using 14.2 ppg EMW FIT at the 7-5/8” surface casing shoe Shallowest Allowable Perf TVD: MPSP/(0.74-0.1) = 1482 psi / 0.64 = 2315‘ TVD I am hesitant to dump cement on top of the fill as I believe we still have some gas contributing from below the fill at ~4553’. We ran a GPT on 2/13 and saw cooling below 4350’ MD that didn’t warm back up until stopped logging right before the tag depth. Thanks, Scott Warner Kenai – Operations Engineer Office: (907) 564-4506 Cell: (907) 830-8863 From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Sent: Wednesday, May 7, 2025 11:02 AM To: Scott Warner <scott.warner@hilcorp.com> CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. Subject: [EXTERNAL] Kalotsa 2 (PTD 216-155) perf sundry Scott, When I do the calcs for shallowest allowable perf based on the T-17 being open (uncemented), then I calculate 2800’ TVD, which wouldn’t allow all of your proposed perfs. Where would you suggest setting a cement plug in this well? You could potentially set cement on top of the fill in the well, then you’d be able to perf everything you’re asking for. But we would prefer to see a plug between Tyonek and Beluga, so you could also set one there if there’s no more contribution from the Tyonek. I don’t want you to shut in any production by setting a plug. Let me know where you’d prefer to set cement, or alternatively we could just hold off on the shallwer perfs above 2800’ TVD for now. Thanks Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you havereceived 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 ortelephone 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 notadversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you havereceived 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 ortelephone 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 notadversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you havereceived 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 ortelephone 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 notadversely 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. 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 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): 8,200'N/A Casing Collapse Structural Conductor 1,410psi Surface 4,790psi Intermediate Production 7,500psi 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 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 Other: N2 scott.warner@hilcorp.com 907-564-4506 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 Scott Warner 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 ADL0359242 / ADL0384372 / FEE-CIRI 216-155 50-133-20659-00-00 Hilcorp Alaska, LLC Proposed Pools: N/A TVD Burst N/A 8,430psi 1,379' Size 120' 1,379' MD See Schematic 2,890psi 6,890psi 120'120' 1,379' May 14, 2025 N/A 8,184' Perforation Depth MD (ft): 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Ninilchik Unit Kalotsa 2CO 701C Same 7,841'4-1/2" ~1532psi 8,184' 4,880' Length Baker Swell Packer & N/A 1,181 (MD) 1,181 (TVD) & N/A 7,857'4,880'4,645' Ninilchik Beluga-Tyonek Gas 16" 7-5/8" See Schematic m n P s 66 t N 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 3:15 pm, May 05, 2025 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2025.05.05 15:01:54 - 08'00' Noel Nocas (4361) 325-278 SFD 5/8/2025 DSR-5/6/25BJM 5/12/25 Perforate 10-404 This sundry does not authorize perforating above 2800' TVD. *&: Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2025.05.13 13:55:35 -08'00'05/13/25 RBDMS JSB 051425 Well Prognosis Well Name: Kalotsa 2 API Number: 50-133-20659-00-00 Current Status: Producing Gas Well Permit to Drill Number: 216-155 Regulatory Contact: Donna Ambruz (907) 777-8305 First Call Engineer: Scott Warner (907) 564-4506 (O) (907) 830-8863 (C) Second Call Engineer: Chad Helgeson (907) 777-8405 (O) (907) 229-4824 (C) Maximum Expected BHP: 1982 psi @ 4504’ TVD Based on 0.44 psi/ft Max. Potential Surface Pressure: 1532 psi Based on 0.1 psi/ft gas gradient to surface Applicable Frac Gradient: 0.74 psi/ft using 14.2 ppg EMW FIT at the 7-5/8” surface casing shoe Shallowest Allowable Perf TVD: MPSP/(0.74-0.1) = 1532 psi / 0.64 = 2394‘ TVD Top of Applicable Gas Pool: 1423’ MD/1423’ TVD (Beluga-Tyonek) Well Status: Online Gas producer – 625 mscfd, 4 bwpd, 38 psi FTP Brief Well Summary Kalotsa 2 was drilled and completed in March 2017, with initial perforations in the T12 sands testing at ~ 9.4 MMCFD. The well was brought online fulltime in November of 2018, came online at 15.0 MMCFD and declined steadily until March of 2020 when the C-712 compressor was brough online. In January 2021, the well started to load up with water. A plug was set and multiple Tyonek sands were perforated with minimal results. January of 2022, additional perforations were added in the Beluga sands which boosted production back up to ~2 mmscfd. Additional perforations were added in February 2025 without an increase in rate. The objective of this sundry is to add additional infill perforations to the Beluga sands to increase the rate. Notes Regarding Wellbore Condition x Inclination o Max inclination = 25.3° at 3689’ MD o Max DLS: 4.12° @ 2442’ MD x Min ID o 3.820” – 4282’ MD – Caliper in 2021 showed slight restriction x Recent Tags o 2/11/25: RIH w/ 3.75” GR to 3778’ KB. RIH w/ 2-7/8” x 20’ dummy guns and tag at 4553’ KB o 7/31/23: RIH W/ 2.5"x6' DD bailer to 4748' KB, W/T, POOH, could not see fluid level, soap sticks in bailer. Pre-Sundry Steps: 1. MIRU Cap string truck 2. Pull 3/8” cap string from 3650’ MD 3. RD cap string truck 4. RU slickline 5. PT lubricator to 250 psi low/ 2,000 psi high 6. D&T to TD to find updated tag. Last tag was 4553’ KB in Feb 2025 7. RDMO slickline Deepest perf must be used as basis for shallowest allowable perf calculation until a plug is set with cement to isolate deeper perfs. Shallowest allowable perf is 2800' TVD. -bjm Well Prognosis Procedure: 1. MIRU E-line and pressure control equipment 2. PT lubricator to 250 psi low /2,000 psi high 3. RIH and perforate BEL 73 – BEL 120 sands from bottom up with 2-3/4” 60 deg phased perf guns: Below are proposed targeted sands in order of testing (bottom/up), but additional sand may be added depending on results of these perfs, between the proposed top and bottom perfs Zone Top MD Btm MD Top TVD Btm TVD Interval BEL 73 ±2,643' ±2,660' ±2,598' ±2,614' ±17' BEL 74 ±2,704' ±2,714' ±2,654' ±2,663' ±10' BEL 80 ±2,768' ±2,774' ±2,713' ±2,718' ±6' BEL 82 ±2,824' ±2,830' ±2,764' ±2,770' ±6' BEL 83 ±2,848' ±2,862' ±2,786' ±2,799' ±14' BEL 92 ±3,043' ±3,060' ±2,966' ±2,982' ±17' BEL 94 ±3,130' ±3,136' ±3,047' ±3,052' ±6' BEL 95 ±3,166' ±3,174' ±3,080' ±3,087' ±8' BEL 98 ±3,299' ±3,307' ±3,202' ±3,210' ±8' BEL 99 ±3,313' ±3,319' ±3,215' ±3,221' ±6' BEL 100 ±3,369' ±3,379' ±3,267' ±3,276' ±10' BEL 115 ±3,502' ±3,508' ±3,389' ±3,394' ±6' BEL 120 ±3,568' ±3,576' ±3,449' ±3,456' ±8' a. Proposed perfs are also shown on the proposed schematic in red font b. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation c. Use Gamma/CCL to correlate d. Record Tubing pressures before and after each perforating run at 5 min, 10 min, and 15 min intervals post perf shot (if using switched guns, wait 10 min between shots) e. Pending well production, all perf intervals may not be completed f. If any zone produces sand and/or water or needs isolated, RIH and set plug above the perforations OR patch across the perforations i. Note: A CIBP may be used instead of WRP if it is determined that no cement is needed for operational purposes. g. If necessary, use nitrogen to pressure up well during perforating or to depress water prior to setting a plug above perforations 4. RDMO a. If necessary, re- run cap string to aid with water production if encountered post perforating. Attachments: 1. Current Schematic 2. Proposed Schematic 3. Standard Well Procedure – N2 Operations Updated by DMA 03-03-25 SCHEMATIC Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PBTD = 4,880’ / PBTVD = 4,645’ TD = 8,200’ / TVD = 7,857’ RKB = 18’ CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16” Conductor – Driven to Set Depth 84 J-55 Weld 15.01” Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875” Surf 1,379’ 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958” Surf 8,184’ JEWELRY DETAIL No. Depth MD Depth TVD ID Item 1 1,181’ 1,181’ 3.958” Baker Swell Packer 2 4,880’ 4,645’ CIBP Set on 04/13/21 3 4,949’ 4,708’ 3.52” Collapsed casing (3/13/21 caliper) 4 6,744’ 6,402’ <1.75” Unknown restriction / damage (3/13/21 tag) PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Date Status BEL 134 3,695’ 3,709’ 3,564’ 3,577’ 14’ 01/21/22 Open BEL 135 3,769’ 3,773’ 3,631’ 3,635’ 4’ 01/20/22 Open T3 3,996’ 4,006’ 3,838’ 3,847’ 10’ 02/13/25 Open T3 4,079' 4,088' 3,914’ 3,923’ 9 4/14/2021 Open T5U 4,135' 4,141' 3,965’ 3,971’ 6 4/14/2021 Open T5L 4,153' 4,163' 4,163‘ 3,982’ 10 4/13/2021 Open T5A 4,192’ 4,196’ 4,017’ 4,021’ 4‘ 8/24/2021 Open T5A 4,208’ 4,214’ 4,032’ 4,037’ 6’ 02/13/25 Open T6 4,278’ 4,292’ 4,096’ 4,108’ 14’ 02/13/25 Open T6U 4,293’ 4,300’ 4,110’ 4,116’ 7‘ 6/8/2021 Open T6L 4,334’ 4,338’ 4,147’ 4,150’ 4‘ 8/24/2021 Open T6A 4,433' 4,445' 4,237' 4,248' 12‘ 8/24/2021 Open T6B 4,459’ 4,461’ 4,261’ 4,263’ 2‘ 8/24/2021 Open T7 4,408’ 4,414’ 4,214’ 4,220’ 6’ 02/13/25 Open T8 4,516’ 4,522’ 4,313’ 4,318’ 6’ 02/13/25 Open T8 4,526’ 4,530’ 4,322’ 4,326’ 4‘ 6/8/2021 Open T9A 4,618' 4,623' 4,405‘ 4,411’ 5 4/14/2021 Open T10 4,633' 4,636' 4,419’ 4,423’ 3 4/13/2021 Open T10A 4,680 4,685’ 4,462’ 4,467 5‘ 6/8/2021 Open T10B 4,721’ 4,723’ 4,500’ 4,502’ 2‘ 6/8/2021 Open T10B 4,726’ 4,730’ 4,504’ 4,508’ 4‘ 6/8/2021 Open T12 4,937’ 4,941’ 4,697’ 4,701’ 4 3/3/2017 Isolated 4,949’ 4,974’ 4,708’ 4,731’ 25 3/3/2017 Isolated 4,994’ 5,013’ 4,749’ 4,767’ 19 3/3/2017 Isolated T17 5,523' 5,543' 5,235’ 5,254’ 20 4/10/2021 Isolated Cement Details 7-5/8” Cement Job: 9-7/8” hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2” Cement Job: 6-3/4” hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,610’ MD. 1 16” 7-5/8” 4-1/2” T3 TOC @ ~2,610’ (2/6/17 CBL) 2 T17 T12 3 4 Bel 134 Bel 135 T5 T6 T7 T8 T9 T10 3/8” Capillary String Installed 02/19/25 Top Bottom MD 0’ 3,650’ Updated by SRW 04-29-25 PROPOSED Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PBTD = 4,880’ / PBTVD = 4,645’ TD = 8,200’ / TVD = 7,857’ RKB = 18’ CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16” Conductor – Driven to Set Depth 84 J-55 Weld 15.01” Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875” Surf 1,379’ 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958” Surf 8,184’ JEWELRY DETAIL No. Depth MD Depth TVD ID Item 1 1,181’ 1,181’ 3.958” Baker Swell Packer 2 4,880’ 4,645’ CIBP Set on 04/13/21 3 4,949’ 4,708’ 3.52” Collapsed casing (3/13/21 caliper) 4 6,744’ 6,402’ <1.75” Unknown restriction / damage (3/13/21 tag) PERFORATION DETAIL Sands Top MD Btm MD Top TVD Btm TVD FT Date Status BEL 73 ±2,643' ±2,660' ±2,598' ±2,614' ±17' Proposed TBD BEL 74 ±2,704' ±2,714' ±2,654' ±2,663' ±10' Proposed TBD BEL 80 ±2,768' ±2,774' ±2,713' ±2,718' ±6' Proposed TBD BEL 82 ±2,824' ±2,830' ±2,764' ±2,770' ±6' Proposed TBD BEL 83 ±2,848' ±2,862' ±2,786' ±2,799' ±14' Proposed TBD BEL 92 ±3,043' ±3,060' ±2,966' ±2,982' ±17' Proposed TBD BEL 94 ±3,130' ±3,136' ±3,047' ±3,052' ±6' Proposed TBD BEL 95 ±3,166' ±3,174' ±3,080' ±3,087' ±8' Proposed TBD BEL 98 ±3,299' ±3,307' ±3,202' ±3,210' ±8' Proposed TBD BEL 99 ±3,313' ±3,319' ±3,215' ±3,221' ±6' Proposed TBD BEL 100 ±3,369' ±3,379' ±3,267' ±3,276' ±10' Proposed TBD BEL 115 ±3,502' ±3,508' ±3,389' ±3,394' ±6' Proposed TBD BEL 120 ±3,568' ±3,576' ±3,449' ±3,456' ±8' Proposed TBD BEL 134 3,695’ 3,709’ 3,564’ 3,577’ 14’ 01/21/22 Open BEL 135 3,769’ 3,773’ 3,631’ 3,635’ 4’ 01/20/22 Open T3 3,996’ 4,006’ 3,838’ 3,847’ 10’ 02/13/25 Open T3 4,079' 4,088' 3,914’ 3,923’ 9 4/14/2021 Open T5U 4,135' 4,141' 3,965’ 3,971’ 6 4/14/2021 Open T5L 4,153' 4,163' 4,163‘ 3,982’ 10 4/13/2021 Open T5A 4,192’ 4,196’ 4,017’ 4,021’ 4‘ 8/24/2021 Open T5A 4,208’ 4,214’ 4,032’ 4,037’ 6’ 02/13/25 Open T6 4,278’ 4,292’ 4,096’ 4,108’ 14’ 02/13/25 Open T6U 4,293’ 4,300’ 4,110’ 4,116’ 7‘ 6/8/2021 Open T6L 4,334’ 4,338’ 4,147’ 4,150’ 4‘ 8/24/2021 Open T6A 4,433' 4,445' 4,237' 4,248' 12‘ 8/24/2021 Open T6B 4,459’ 4,461’ 4,261’ 4,263’ 2‘ 8/24/2021 Open T7 4,408’ 4,414’ 4,214’ 4,220’ 6’ 02/13/25 Open T8 4,516’ 4,522’ 4,313’ 4,318’ 6’ 02/13/25 Open T8 4,526’ 4,530’ 4,322’ 4,326’ 4‘ 6/8/2021 Open T9A 4,618' 4,623' 4,405‘ 4,411’ 5 4/14/2021 Open T10 4,633' 4,636' 4,419’ 4,423’ 3 4/13/2021 Open T10A 4,680 4,685’ 4,462’ 4,467 5‘ 6/8/2021 Open T10B 4,721’ 4,723’ 4,500’ 4,502’ 2‘ 6/8/2021 Open T10B 4,726’ 4,730’ 4,504’ 4,508’ 4‘ 6/8/2021 Open T12 4,937’ 4,941’ 4,697’ 4,701’ 4 3/3/2017 Isolated 4,949’ 4,974’ 4,708’ 4,731’ 25 3/3/2017 Isolated 4,994’ 5,013’ 4,749’ 4,767’ 19 3/3/2017 Isolated T17 5,523' 5,543' 5,235’ 5,254’ 20 4/10/2021 Isolated Cement Details 7-5/8” Cement Job: 9-7/8” hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2” Cement Job: 6-3/4” hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,610’ MD. 1 16” 7-5/8” 4-1/2” T3 TOC @ ~2,610’ (2/6/17 CBL) 2 T17 T12 3 4 Bel 134 Bel 135 T5 T6 T7 T8 T9 T10 3/8” Capillary String (02/19/25) Top Btm 0’ 2,600’ Bel 73 - Bel 120 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 McLellan, Bryan J (OGC) From:McLellan, Bryan J (OGC) Sent:Monday, May 12, 2025 5:00 PM To:Scott Warner Subject:RE: [EXTERNAL] Kalotsa 2 (PTD 216-155) perf sundry Scott, For now I’ll limit the shallowest perf depth on the existing sundry application. You can apply for shallower perfs after installing a cement plug. Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Scott Warner <scott.warner@hilcorp.com> Sent: Friday, May 9, 2025 1:53 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: RE: [EXTERNAL] Kalotsa 2 (PTD 216-155) perf sundry Bryan, On 2/13/25 when we were perforaƟng the well was shut in and built up/stabilized at 215 psi which is our actual maximum expected surface pressure from open perfs below. With that said we can use the newest proposed perfs as the maximum expected pressure which is the BEL 120 at 3449’ TVD. Maximum Expected BHP: 1517 psi @ 3449’ TVD Based on 0.44 psi/Ō (Lowest proposed perforaƟons- BEL 120) 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. 2 Max. PotenƟal Surface Pressure: 1482 psi Based on 0.01 psi/Ō gas gradient to surface Applicable Frac Gradient: 0.74 psi/Ō using 14.2 ppg EMW FIT at the 7-5/8” surface casing shoe Shallowest Allowable Perf TVD: MPSP/(0.74-0.1) = 1482 psi / 0.64 = 2315‘ TVD I am hesitant to dump cement on top of the Įll as I believe we sƟll have some gas contribuƟng from below the Įll at ~4553’. We ran a GPT on 2/13 and saw cooling below 4350’ MD that didn’t warm back up unƟl stopped logging right before the tag depth. Thanks, ScoƩ Warner Kenai – OperaƟons Engineer Oĸce: (907) 564-4506 Cell: (907) 830-8863 From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Sent: Wednesday, May 7, 2025 11:02 AM To: Scott Warner <scott.warner@hilcorp.com> Subject: [EXTERNAL] Kalotsa 2 (PTD 216-155) perf sundry Scott, When I do the calcs for shallowest allowable perf based on the T-17 being open (uncemented), then I calculate 2800’ TVD, which wouldn’t allow all of your proposed perfs. Where would you suggest setting a cement plug in this well? You could potentially set cement on top of the Ʊll in the well, then you’d be able to perf everything you’re asking for. But we would prefer to see a plug between Tyonek and Beluga, so you could also set one there if there’s no more contribution from the Tyonek. I don’t want you to shut in any production by setting a plug. Let me know where you’d prefer to set cement, or alternatively we could just hold oƯ on the shallwer perfs above 2800’ TVD for now. Thanks Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. 3 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. 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: Pull / Install Cap String 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 8,200 feet 4,880 feet true vertical 7,857 feet N/A feet Effective Depth measured 4,880 feet 1,181 feet true vertical 4,645 feet 1,181 feet Perforation depth Measured depth See Schematic feet True Vertical depth See Schematic feet Tubing (size, grade, measured and true vertical depth)N/A 1,181 MD Packers and SSSV (type, measured and true vertical depth)Baker Swell Pkr 1,181 TVD SSSV: NA 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: 7,500psi 2,890psi 6,890psi 8,430psi 1,379'1,379' Burst Collapse 1,410psi 4,790psi Production Liner 8,184' Casing Structural 7,841'8,184' 120'Conductor Surface Intermediate 16" 7-5/8" 120' 1,379' measured TVD 4-1/2" STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 216-155 50-133-20659-00-00 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: ADL0359242 / ADL0384372 / FEE-CIRI Ninilchik / Beluga-Tyonek Gas Ninilchik Unit Kalotsa 2 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 120' 2 0704 0 360 58 Scott Warner, Operations Engineer 325-012 Sr Pet Eng:Sr Pet Geo:Sr Res Eng: WINJ WAG 725 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 scott.warner@hilcorp.com 907-564-4506 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 Grace Christianson at 10:03 am, Mar 17, 2025 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2025.03.14 17:03:27 - 08'00' Noel Nocas (4361) RBDMS 032625 BJM 5/2/25 DSR-3/25/25 Page 1/1 Well Name: NINU Kalotsa 02 Report Printed: 2/26/2025WellViewAdmin@hilcorp.com Alaska Weekly Report - Operations Jobs Actual Start Date:2/6/2025 End Date: Report Number 1 Report Start Date 2/11/2025 Report End Date 2/12/2025 Last 24hr Summary PTW, JSA, SIMOPS with rig, YJOS E-line and construction crew. Spot cap string truck. Load spool into craddle. Rig up cap string unit. WHP 20 psi. Remove hanger and back off static lock down rubbers. Pick up on 3/8" cap string set at 4500' 1800 lbs. PIck up clean. Cap string moving at only 800 lbs. Spool OOH with string. 500' from surface cap tubing had pinholed. Walk pinhole back to reel and secure. Pinhole looks like damage occured from gas cut across perfs. Continue spooling OOH. Tagged up at surface and close swab valve. Pop off well. Foot valve and all tubing recovered. Rig down cap string truck and spot on Kalotsa 1. Report Number 2 Report Start Date 2/12/2025 Report End Date 2/12/2025 Last 24hr Summary D&T w/ 3.75'' g-ring to 3778'kb drift dummy guns to 4553'kb PTW/PJSM. FTP 40 psi. MIRU Pollard Slickline. PT lubricator 250 psi low / 2000 psi high - good test. RIH w/ 3.75" GR and tag @ 3,778' RKB. RIH w/ 2 7/8" x 20' dummy gun and tag @ 4,553' RKB. Secure well and RD Pollard. Report Number 3 Report Start Date 2/13/2025 Report End Date 2/13/2025 Last 24hr Summary PTW/PJSM. SITP 210 psi. MIRU YJ Eline. PT lubricator to 250 psi low / 2000 psi high - good test. RIH w/ GPT and find fluid level @ ~4,300'. RIH w/ 6'x6' 2 3/4" 6SPF 60DEG guns on switch and perf TY_8 (4,516’ – 4,522’) and TY_7 (4,408’ – 4,414’). RIH w/ 14' x 2 3/4" 6SPF 60DEG guns and perf TY_6 (4,278’ – 4,292’). RIH w/ 6'x10' 2 3/4" 6SPF 60DEG guns on switch and perf TY_5a (4,208’ – 4,214’) and TY_3 (3,996’ – 4,006’). RD YJ E-line. Secure well and hand over to production. Report Number 4 Report Start Date 2/19/2025 Report End Date 2/20/2025 Last 24hr Summary PTW, JSA. Spot in cap string truck and rig up. Conferenced call with Lee Specialties/DataCan for calibration values on new electrical depth counter. Ran footage and measured to confirm calibration numbers are correct. RIg up cap string ruck. Make up 3/4" fluted/centralized foot vave. Stab on well with injector head. Pressure test pack off assembly 250/4000 psi. Open swa valve 23.5 turns. Run in hole with 3/8" SS cap stringto 3700'. Pick up clean at 1300 lbs. Set cap string in tension at 3650'. Lock down static packoff assembly and pressure up dynamic pack off assembly to 3500 psi. Install hanger. RIg back injector head. Remove SS tubing and secue spool. Spot cap string reel next to soap skid. Rig down truck and park on edge of pad. Field: Ninilchik Sundry #: 325-012 State: Alaska Rig/Service:Permit to Drill (PTD) #:216-155Permit to Drill (PTD) #:216-155 Wellbore API/UWI:50-133-20659-00-00 ppg ppggy p 500' from surface cap tubing had pinholed. Walk pinhole back to reel and secure. Pinhole looks like damage occured from gas cut across perfs Cap string pinholed. Asked Scott for details. Updated by DMA 03-03-25 SCHEMATIC Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PBTD = 4,880’ / PBTVD = 4,645’ TD = 8,200’ / TVD = 7,857’ RKB = 18’ CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16” Conductor – Driven to Set Depth 84 J-55 Weld 15.01” Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875” Surf 1,379’ 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958” Surf 8,184’ JEWELRY DETAIL No. Depth MD Depth TVD ID Item 1 1,181’ 1,181’ 3.958” Baker Swell Packer 2 4,880’ 4,645’ CIBP Set on 04/13/21 3 4,949’ 4,708’ 3.52” Collapsed casing (3/13/21 caliper) 4 6,744’ 6,402’ <1.75” Unknown restriction / damage (3/13/21 tag) PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Date Status BEL 134 3,695’ 3,709’ 3,564’ 3,577’ 14’ 01/21/22 Open BEL 135 3,769’ 3,773’ 3,631’ 3,635’ 4’ 01/20/22 Open T3 3,996’ 4,006’ 3,838’ 3,847’ 10’ 02/13/25 Open T3 4,079' 4,088' 3,914’ 3,923’ 9 4/14/2021 Open T5U 4,135' 4,141' 3,965’ 3,971’ 6 4/14/2021 Open T5L 4,153' 4,163' 4,163‘ 3,982’ 10 4/13/2021 Open T5A 4,192’ 4,196’ 4,017’ 4,021’ 4‘ 8/24/2021 Open T5A 4,208’ 4,214’ 4,032’ 4,037’ 6’ 02/13/25 Open T6 4,278’ 4,292’ 4,096’ 4,108’ 14’ 02/13/25 Open T6U 4,293’ 4,300’ 4,110’ 4,116’ 7‘ 6/8/2021 Open T6L 4,334’ 4,338’ 4,147’ 4,150’ 4‘ 8/24/2021 Open T6A 4,433' 4,445' 4,237' 4,248' 12‘ 8/24/2021 Open T6B 4,459’ 4,461’ 4,261’ 4,263’ 2‘ 8/24/2021 Open T7 4,408’ 4,414’ 4,214’ 4,220’ 6’ 02/13/25 Open T8 4,516’ 4,522’ 4,313’ 4,318’ 6’ 02/13/25 Open T8 4,526’ 4,530’ 4,322’ 4,326’ 4‘ 6/8/2021 Open T9A 4,618' 4,623' 4,405‘ 4,411’ 5 4/14/2021 Open T10 4,633' 4,636' 4,419’ 4,423’ 3 4/13/2021 Open T10A 4,680 4,685’ 4,462’ 4,467 5‘ 6/8/2021 Open T10B 4,721’ 4,723’ 4,500’ 4,502’ 2‘ 6/8/2021 Open T10B 4,726’ 4,730’ 4,504’ 4,508’ 4‘ 6/8/2021 Open T12 4,937’ 4,941’ 4,697’ 4,701’ 4 3/3/2017 Isolated 4,949’ 4,974’ 4,708’ 4,731’ 25 3/3/2017 Isolated 4,994’ 5,013’ 4,749’ 4,767’ 19 3/3/2017 Isolated T17 5,523' 5,543' 4,239’ 4,242’ 20 4/10/2021 Isolated Cement Details 7-5/8” Cement Job: 9-7/8” hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2” Cement Job: 6-3/4” hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,840’ MD. 1 16” 7-5/8” 4-1/2” T3 TOC @ ~2,840’ (2/6/17 CBL) 2 T17 T12 3 4 Bel 134 Bel 135 T5 T6 T7 T8 T9 T10 3/8” Capillary String Installed 02/19/25 Top Bottom MD 0’ 3,650’ CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. 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:Scott Warner To:McLellan, Bryan J (OGC) Subject:RE: [EXTERNAL] Kalotsa 2 (PTD 216-155) Cap string Date:Friday, May 2, 2025 11:56:48 AM Bryan, Yes, there is a check valve in the cap string BHA and they were holding as we never saw any indicator at surface. Due to soap being continually pumped the hydrostatic pressure of the soap prevented any gas migration to surface. Scott Warner Kenai – Operations Engineer Office: (907) 564-4506 Cell: (907) 830-8863 From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Sent: Friday, May 2, 2025 10:06 AM To: Scott Warner <Scott.Warner@hilcorp.com> Subject: [EXTERNAL] Kalotsa 2 (PTD 216-155) Cap string Scott, I noticed the cap string had pinholed when it was pulled to surface. Were there check valves in the cap string BHA? Were they holding? Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 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 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): 8,200'N/A Casing Collapse Structural Conductor 1,410psi Surface 4,790psi Intermediate Production 7,500psi 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 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 Baker Swell Packer & N/A 1,181 (MD) 1,181 (TVD) & N/A 7,857' 4,880' 4,645' Ninilchik Beluga-Tyonek Gas 16" 7-5/8" See Schematic 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Ninilchik Unit Kalotsa 2CO 701C Same 7,841'4-1/2" 1,634 8,184' 4,880' Length January 24, 2025 N/A 8,184' Perforation Depth MD (ft): See Schematic 2,890psi 6,890psi 120'120' 1,379' 1,379' Size 120' 1,379' MD 50-133-20659-00-00 Hilcorp Alaska, LLC Proposed Pools: N/A TVD Burst N/A 8,430psi 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 ADL0359242 / ADL0384372 / FEE-CIRI 216-155 Authorized Name and Digital Signature with Date: Tubing Size: PRESENT WELL CONDITION SUMMARY Scott Warner AOGCC USE ONLY Other: Pull / Install Cap String scott.warner@hilcorp.com 907-564-4506 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. No 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 3:30 pm, Jan 13, 2025 325-012 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2025.01.13 13:58:14 - 09'00' Noel Nocas (4361) SFD 1/20/2025 DSR-1/16/25BJM 1/23/25 10-404 *&: Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2025.01.23 15:57:00 -09'00'01/23/25 RBDMS JSB 012425 Well Prognosis Well Name:Kalotsa 2 API Number:50-133-20659-00-00 Current Status:Producing Gas Well Permit to Drill Number:216-155 Regulatory Contact:Donna Ambruz (907) 777-8305 First Call Engineer:Scott Warner (907) 564-4506 (O) (907) 830-8863 (C) Second Call Engineer:Chad Helgeson (907) 777-8405 (O) (907) 229-4824 (C) Maximum Expected BHP:2115 psi @ 4807’ TVD Based on 0.44 psi/ft Max. Potential Surface Pressure:1634 psi Based on 0.1 psi/ft gas gradient to surface Applicable Frac Gradient:0.74 psi/ft using 14.2 ppg EMW FIT at the 7-5/8” surface casing shoe Shallowest Allowable Perf TVD:MPSP/(0.74-0.1) = 1532 psi / 0.64 = 2394‘ TVD Top of Applicable Gas Pool:1423’ MD/1423’ TVD (Beluga-Tyonek) Well Status:Online Gas producer – 723 mscfd, 4 bwpd, 38 psi FTP Brief Well Summary Kalotsa 2 was drilled and completed in March 2017, with initial perforations in the T12 sands testing at ~ 9.4 MMCFD. The well was brought online fulltime in November of 2018 to meet winter demand, the well came online at 15.0 MMCFD and declined steadily until March of 2020 when the C-712 compressor was brough online. In January 2021, the well started to load up with water. A plug was set and multiple Tyonek sands were perforated with minimal results. January of 2022, additional perforations were added in the Beluga sands which boosted production back up to ~2 mmscfd. The objective of this sundry is to add additional infill perforations to the Tyonek sands to increase the rate. Notes Regarding Wellbore Condition x Inclination o Max inclination = 25.3° at 3689’ MD o Max DLS: 4.12° @ 2442’ MD x Min ID o 3.820” – 4282’ MD – Caliper in 2021 showed slight restriction x Recent Tags o 7/31/23: RIH W/ 2.5"x6' DD bailer to 4748' KB, W/T, POOH, could not see fluid level, soap sticks in bailer. o 11/25/22 RIH/w 2.5" DD bailer to 4722' SLM w/t to 4726' SLM ( 4741' RKB w/t to 4745' RKB) POOH OOH/w full bailer thick sand course Pre-Sundry Steps: 1. MIRU Cap string truck 2. Pull 3/8” cap string from 4500’ MD 3. RD cap string truck 4. RU slickline 5. PT lubricator to 250 psi low/ 2,000 psi high 6. D&T to TD to find updated tag. Last SL tag was 4748’ KB in July 2023 7. RDMO slickline Well Prognosis Procedure: 1. MIRU E-line and pressure control equipment 2. PT lubricator to 250 psi low /2,000 psi high 3. RIH and perforate TY 3 – TY 11 sands from bottom up with 2-7/8” 60 deg phased perf guns: Below are proposed targeted sands in order of testing (bottom/up), but additional sand may be added depending on results of these perfs, between the proposed top and bottom perfs Zone Top MD Btm MD Top TVD Btm TVD Interval TY_3 ±3,996' ±4,006' ±3,838' ±3,847' ±10' TY_5A ±4,208' ±4,214' ±4,032' ±4,037' ±6' TY_6 ±4,278' ±4,292' ±4,096' ±4,108' ±14' TY_7 ±4,408' ±4,414' ±4,214' ±4,220' ±6' TY_8 ±4,516' ±4,522' ±4,313' ±4,318' ±6' TY_10A ±4,674' ±4,680' ±4,457' ±4,462' ±6' TY_11A ±4,807' ±4,817' ±4,578' ±4,588' ±10' a. Proposed perfs are also shown on the proposed schematic in red font b. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation c. Use Gamma/CCL to correlate d. Record Tubing pressures before and after each perforating run at 5 min, 10 min, and 15 min intervals post perf shot (if using switched guns, wait 10 min between shots) e. Pending well production, all perf intervals may not be completed f. If any zone produces sand and/or water or needs isolated, RIH and set plug above the perforations OR patch across the perforations i.Note: A CIBP may be used instead of WRP if it is determined that no cement is needed for operational purposes. g. If necessary, use nitrogen to pressure up well during perforating or to depress water prior to setting a plug above perforations 4. RDMO a. If necessary, re- run cap string to aid with water production if encountered post perforating. Attachments: 1. Current Schematic 2. Proposed Schematic 3. Standard Well Procedure – N2 Operations Updated by DMA 08-21-23 SCHEMATIC Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PBTD = 4,880’ / PBTVD = 4,645’ TD = 8,200’ / TVD = 7,857’ RKB = 18’ CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16” Conductor – Driven to Set Depth 84 J-55 Weld 15.01” Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875” Surf 1,379’ 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958” Surf 8,184’ JEWELRY DETAIL No. Depth MD Depth TVD ID Item 1 1,181’ 1,181’ 3.958” Baker Swell Packer 2 4,880’ 4,645’ CIBP Set on 04/13/21 3 4,949’ 4,708’ 3.52” Collapsed casing (3/13/21 caliper) 4 6,744’ 6,402’ <1.75” Unknown restriction / damage (3/13/21 tag) PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Date Status BEL 134 3,695’ 3,709’ 3,564’ 3,577’ 14’ 01/21/22 Open BEL 135 3,769’ 3,773’ 3,631’ 3,635’ 4’ 01/20/22 Open T3 4,079' 4,088' 3,914’ 3,923’ 9 4/14/2021 Open T5U 4,135' 4,141' 3,965’ 3,971’ 6 4/14/2021 Open T5L 4,153' 4,163' 4,163‘ 3,982’ 10 4/13/2021 Open T5A 4,192’ 4,196’ 4,017’ 4,021’ 4‘ 8/24/2021 Open T6U 4,293’ 4,300’ 4,110’ 4,116’ 7‘ 6/8/2021 Open T6L 4,334’ 4,338’ 4,147’ 4,150’ 4‘ 8/24/2021 Open T6A 4,433' 4,445' 4,237' 4,248' 12‘ 8/24/2021 Open T6B 4,459’ 4,461’ 4,261’ 4,263’ 2‘ 8/24/2021 Open T8 4,526’ 4,530’ 4,322’ 4,326’ 4‘ 6/8/2021 Open T9A 4,618' 4,623' 4,405‘ 4,411’ 5 4/14/2021 Open T10 4,633' 4,636' 4,419’ 4,423’ 3 4/13/2021 Open T10A 4,680 4,685’ 4,462’ 4,467 5‘ 6/8/2021 Open T10B 4,721’ 4,723’ 4,500’ 4,502’ 2‘ 6/8/2021 Open T10B 4,726’ 4,730’ 4,504’ 4,508’ 4‘ 6/8/2021 Open T12 4,937’ 4,941’ 4,697’ 4,701’ 4 3/3/2017 Isolated 4,949’ 4,974’ 4,708’ 4,731’ 25 3/3/2017 Isolated 4,994’ 5,013’ 4,749’ 4,767’ 19 3/3/2017 Isolated T17 5,523' 5,543' 4,239’ 4,242’ 20 4/10/2021 Isolated Cement Details 7-5/8” Cement Job: 9-7/8” hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2” Cement Job: 6-3/4” hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,840’ MD. 1 16” 7-5/8” 4-1/2” T3 TOC @ ~2,840’ (2/6/17 CBL) 2 T17 T12 3 4 Bel 134 Bel 135 3/8” Capillary String Installed 08/04/23 Top Bottom MD 0’ 4,500’ Updated by SRW 01/10/25 PROPOSED Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PBTD = 4,880’ / PBTVD = 4,645’ TD = 8,200’ / TVD = 7,857’ RKB = 18’ CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16” Conductor – Driven to Set Depth 84 J-55 Weld 15.01” Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875” Surf 1,379’ 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958” Surf 8,184’ JEWELRY DETAIL No. Depth MD Depth TVD ID Item 1 1,181’ 1,181’ 3.958” Baker Swell Packer 2 4,880’ 4,645’ CIBP Set on 04/13/21 3 4,949’ 4,708’ 3.52” Collapsed casing (3/13/21 caliper) 4 6,744’ 6,402’ <1.75” Unknown restriction / damage (3/13/21 tag) PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Date Status BEL 134 3,695’ 3,709’ 3,564’ 3,577’ 14’ 01/21/22 Open BEL 135 3,769’ 3,773’ 3,631’ 3,635’ 4’ 01/20/22 Open T3-T11 ±3,996’ ±4,817’ ±3,838 ±4,588 ±58 PROPOSED TBD T3 4,079' 4,088' 3,914’ 3,923’ 9 4/14/2021 Open T5U 4,135' 4,141' 3,965’ 3,971’ 6 4/14/2021 Open T5L 4,153' 4,163' 4,163‘ 3,982’ 10 4/13/2021 Open T5A 4,192’ 4,196’ 4,017’ 4,021’ 4‘ 8/24/2021 Open T6U 4,293’ 4,300’ 4,110’ 4,116’ 7‘ 6/8/2021 Open T6L 4,334’ 4,338’ 4,147’ 4,150’ 4‘ 8/24/2021 Open T6A 4,433' 4,445' 4,237' 4,248' 12‘ 8/24/2021 Open T6B 4,459’ 4,461’ 4,261’ 4,263’ 2‘ 8/24/2021 Open T8 4,526’ 4,530’ 4,322’ 4,326’ 4‘ 6/8/2021 Open T9A 4,618' 4,623' 4,405‘ 4,411’ 5 4/14/2021 Open T10 4,633' 4,636' 4,419’ 4,423’ 3 4/13/2021 Open T10A 4,680 4,685’ 4,462’ 4,467 5‘ 6/8/2021 Open T10B 4,721’ 4,723’ 4,500’ 4,502’ 2‘ 6/8/2021 Open T10B 4,726’ 4,730’ 4,504’ 4,508’ 4‘ 6/8/2021 Open T12 4,937’ 4,941’ 4,697’ 4,701’ 4 3/3/2017 Isolated 4,949’ 4,974’ 4,708’ 4,731’ 25 3/3/2017 Isolated 4,994’ 5,013’ 4,749’ 4,767’ 19 3/3/2017 Isolated T17 5,523' 5,543' 4,239’ 4,242’ 20 4/10/2021 Isolated Cement Details 7-5/8” Cement Job: 9-7/8” hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2” Cement Job: 6-3/4” hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,840’ MD. 1 16” 7-5/8” 4-1/2” T3 TOC @ ~2,840’ (2/6/17 CBL) 2 T17 T12 3 4 Bel 134 Bel 135 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: Install Cap String 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 8,200 feet 4,880 feet true vertical 7,857 feet N/A feet Effective Depth measured 4,880 feet 1,181 feet true vertical 4,645 feet 1,181 feet Perforation depth Measured depth See Schematic feet True Vertical depth See Schematic feet Tubing (size, grade, measured and true vertical depth)N/A 1,181 MD Packers and SSSV (type, measured and true vertical depth)Baker Swell Pkr 1,181 TVD SSSV: NA 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: 7,500psi 2,890psi 6,890psi 8,430psi 1,379' 1,379' Burst Collapse 1,410psi 4,790psi Production Liner 8,184' Casing Structural 7,841'8,184' 120'Conductor Surface Intermediate 16" 7-5/8" 120' 1,379' measured TVD 4-1/2" STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 216-155 50-133-20659-00-00 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: ADL0359242 / ADL0384372 / FEE-CIRI Ninilchik / Beluga-Tyonek Gas Ninilchik Unit Kalotsa 2 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 120' 0 01440 0 553 58 Jake Flora, Operations Engineer 323-355 Sr Pet Eng: Sr Pet Geo: Sr Res Eng: WINJ WAG 1779 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 jake.flora@hilcorp.com 907-777-8442 N/A 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 Grace Christianson at 12:11 pm, Aug 29, 2023 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2023.08.28 16:46:33 - 08'00' Noel Nocas (4361) Rig Start Date End Date Cap String 8/4/23 8/4/23 PTW, JSA. MIRU cap string truck and 3/8"x10,000' spool. Make up 3/4" OD foot valve (slim) set 2200 psi opening. Stab on well. PT pack off/bowen flange 250/3500 psi. RIH with cap string and set at 4500' 1400 lbs up weight. Install hanger. Close dynamic and static pack off assembly. Hook up production soap skid. Start pump schedule. 08/04/2023- Friday Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Kalotsa 2 50-133-20659-00-00 216-155 Updated by DMA 08-21-23 SCHEMATIC Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PBTD = 4,880 / PBTVD = 4,645 TD = 8,200 / TVD = 7,857 RKB = 18 CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16 Conductor Driven to Set Depth 84 J-55 Weld 15.01 Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875 Surf 1,379 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958 Surf 8,184 JEWELRY DETAIL No. Depth MD Depth TVD ID Item 1 1,181 1,181 3.958 Baker Swell Packer 2 4,880 4,645 CIBP Set on 04/13/21 3 4,949 4,708 3.52 Collapsed casing (3/13/21 caliper) 4 6,744 6,402 <1.75 Unknown restriction / damage (3/13/21 tag) PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Date Status BEL 134 3,695 3,709 3,564 3,577 14 01/21/22 Open BEL 135 3,769 3,773 3,631 3,635 4 01/20/22 Open T3 4,079' 4,088' 3,914 3,923 9 4/14/2021 Open T5U 4,135' 4,141' 3,965 3,971 6 4/14/2021 Open T5L 4,153' 4,163' 4,163 3,982 10 4/13/2021 Open T5A 4,192 4,196 4,017 4,021 4 8/24/2021 Open T6U 4,293 4,300 4,110 4,116 7 6/8/2021 Open T6L 4,334 4,338 4,147 4,150 4 8/24/2021 Open T6A 4,433' 4,445' 4,237' 4,248' 12 8/24/2021 Open T6B 4,459 4,461 4,261 4,263 2 8/24/2021 Open T8 4,526 4,530 4,322 4,326 4 6/8/2021 Open T9A 4,618' 4,623' 4,405 4,411 5 4/14/2021 Open T10 4,633' 4,636' 4,419 4,423 3 4/13/2021 Open T10A 4,680 4,685 4,462 4,467 5 6/8/2021 Open T10B 4,721 4,723 4,500 4,502 2 6/8/2021 Open T10B 4,726 4,730 4,504 4,508 4 6/8/2021 Open T12 4,937 4,941 4,697 4,701 4 3/3/2017 Isolated 4,949 4,974 4,708 4,731 25 3/3/2017 Isolated 4,994 5,013 4,749 4,767 19 3/3/2017 Isolated T17 5,523' 5,543' 4,239 4,242 20 4/10/2021 Isolated Cement Details 7-5/8 Cement Job: 9-7/8 hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2 Cement Job: 6-3/4 hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,840 MD. 1 16 7-5/8 4-1/2 T3 TOC @ ~2,840 (2/6/17 CBL) 2 T17 T12 3 4 Bel 134 Bel 135 3/8 Capillary String Installed 08/04/23 Top Bottom MD 0 4,500 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: Install Cap String 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): 8,200'N/A Casing Collapse Structural Conductor 1,410psi Surface 4,790psi Intermediate Production 7,500psi 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 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 jake.flora@hilcorp.com 907-777-8442 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 Jake Flora, 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 ADL0359242 / ADL0384372 / FEE-CIRI 216-155 50-133-20659-00-00 Hilcorp Alaska, LLC Proposed Pools: N/A TVD Burst N/A 8,430psi 1,379' Size 120' 1,379' MD See Schematic 2,890psi 6,890psi 120'120' 1,379' July 5, 2023 N/A 8,184' Perforation Depth MD (ft): 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Ninilchik Unit Kalotsa 2CO 701C Same 7,841'4-1/2" ~1531psi 8,184' 4,880' Length Baker Swell Packer & N/A 1,181 (MD) 1,181 (TVD) & N/A 7,857'4,880'4,645' Ninilchik Beluga-Tyonek Gas 16" 7-5/8" See Schematic m n P s 66 t g N 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 1:30 pm, Jun 21, 2023 323-355 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2023.06.21 10:09:13 - 08'00' Noel Nocas (4361) 10-404 BJM 6/22/23 DSR-6/21/23MDG 6/26/2023 BWH 6/26/23 Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2023.06.26 11:53:50 -08'00'06/26/23 RBDMS JSB 062723 Well Prognosis Well Name: Kalotsa 2 API Number: 50-133-20659-00-00 Current Status: Gas Producer Permit to Drill Number: 216-155 First Call Engineer: Jake Flora (907) 777-8442 (O) (720) 988-5375 (M) Second Call Engineer: Chad Helgeson (907) 777-8420 (O) (907) 229-4824 (M) Max. Expected BHP: 1981 psi (0.44 psi/ft gradient to bottom open perf) Max. Potential Surface Pressure: 1531 psi (Based upon BHP minus 0.1 psi/ft gas gradient) Well Status Online gas producer @ 1600 mcfd, 2 bwpd @ 58 psi FTP Brief Well Summary Kalotsa 2 was drilled and completed in March 2017, with initial perforations in the T12 sands testing at ~ 9.4 MMCFD. The well was brought online fulltime in November of 2018 to meet winter demand, the well came online at 15.0 MMCFD and declined steadily until March of 2020 when the C-712 compressor was brough online. In January 2021, the well started to load up with water, after which a plug was set and multiple Tyonek sands perforated with minimal results. In January 2022 the Beluga 134 and 135 sands were added and helped the rate climb back over 2000 mcfd. The objective of this sundry is to stabilize production with a capillary soap string. Continuous soap injection will decrease the erratic unload events. Notes Regarding Wellbore Condition 11/25/22 2.5” DDB to 4722’, recover course sand 01/21/22 Perforated Beluga 134, 135 sands (3695’ – 3773’ gross interval) 12/20/21 Drift with 3.75” gauge ring to 4723’ SLM Procedure: 1. RU Cap String Truck 2. Stab 3/8” capillary line into wellhead pack-off assembly. Make up BHA components. Install pack-off and pressure test against swab valve to 2000 psi 3. RIH with 3/8” capillary string to ±4500’ MD. a. Set cap string as deep as practical 4. Install slips and connect tubing to chemical injection pump. 5. Set spool of remaining line near well 6. RD cap string Unit, and turn well over to production. Attachments: 1. Actual Schematic 2. Proposed Schematic Updated by JLL 02/01/22 SCHEMATIC Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PBTD = 4,880’ / PBTVD = 4,645’ TD = 8,200’ / TVD = 7,857’ RKB = 18’CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16”Conductor – Driven to Set Depth 84 J-55 Weld 15.01” Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875” Surf 1,379’ 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958” Surf 8,184’ JEWELRY DETAIL No.Depth MD Depth TVD ID Item 1 1,181’ 1,181’ 3.958” Baker Swell Packer 2 4,880’ 4,645’ CIBP Set on 04/13/21 3 4,949’ 4,708’ 3.52” Collapsed casing (3/13/21 caliper) 4 6,744’ 6,402’ <1.75” Unknown restriction / damage (3/13/21 tag) Cement Details 7-5/8” Cement Job: 9-7/8” hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2” Cement Job: 6-3/4” hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,840’ MD. 1 16” 7-5/8” 4-1/2” PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD)FT Date Status BEL 134 3,695’ 3,709’ 3,564’ 3,577’ 14’ 01/21/22 Open BEL 135 3,769’ 3,773’ 3,631’ 3,635’ 4’ 01/20/22 Open T3 4,079' 4,088' 3,914’ 3,923’ 9 4/14/2021 Open T5U 4,135' 4,141' 3,965’ 3,971’ 6 4/14/2021 Open T5L 4,153' 4,163' 4,163‘ 3,982’ 10 4/13/2021 Open T5A 4,192’ 4,196’ 4,017’ 4,021’ 4‘ 8/24/2021 Open T6U 4,293’ 4,300’ 4,110’ 4,116’ 7‘ 6/8/2021 Open T6L 4,334’ 4,338’ 4,147’ 4,150’ 4‘ 8/24/2021 Open T6A 4,433' 4,445' 4,237' 4,248' 12‘ 8/24/2021 Open T6B 4,459’ 4,461’ 4,261’ 4,263’ 2‘ 8/24/2021 Open T8 4,526’ 4,530’ 4,322’ 4,326’ 4‘ 6/8/2021 Open T9A 4,618' 4,623' 4,405‘ 4,411’ 5 4/14/2021 Open T10 4,633' 4,636' 4,419’ 4,423’ 3 4/13/2021 Open T10A 4,680 4,685’ 4,462’ 4,467 5‘ 6/8/2021 Open T10B 4,721’ 4,723’ 4,500’ 4,502’ 2‘ 6/8/2021 Open T10B 4,726’ 4,730’ 4,504’ 4,508’ 4‘ 6/8/2021 Open T12 4,937’ 4,941’ 4,697’ 4,701’ 4 3/3/2017 Isolated 4,949’ 4,974’ 4,708’ 4,731’ 25 3/3/2017 Isolated 4,994’ 5,013’ 4,749’ 4,767’ 19 3/3/2017 Isolated T17 5,523' 5,543' 4,239’ 4,242’ 20 4/10/2021 Isolated T3 TOC @ ~2,840’ (2/6/17 CBL) 2 T17 T123 4 Bel 134 Bel 135 Updated by DMA 06-21-23 PROPOSED Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PBTD = 4,880’ / PBTVD = 4,645’ TD = 8,200’ / TVD = 7,857’ RKB = 18’ CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16” Conductor – Driven to Set Depth 84 J-55 Weld 15.01” Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875” Surf 1,379’ 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958” Surf 8,184’ JEWELRY DETAIL No. Depth MD Depth TVD ID Item 1 1,181’ 1,181’ 3.958” Baker Swell Packer 2 4,880’ 4,645’ CIBP Set on 04/13/21 3 4,949’ 4,708’ 3.52” Collapsed casing (3/13/21 caliper) 4 6,744’ 6,402’ <1.75” Unknown restriction / damage (3/13/21 tag) PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Date Status BEL 134 3,695’ 3,709’ 3,564’ 3,577’ 14’ 01/21/22 Open BEL 135 3,769’ 3,773’ 3,631’ 3,635’ 4’ 01/20/22 Open T3 4,079' 4,088' 3,914’ 3,923’ 9 4/14/2021 Open T5U 4,135' 4,141' 3,965’ 3,971’ 6 4/14/2021 Open T5L 4,153' 4,163' 4,163‘ 3,982’ 10 4/13/2021 Open T5A 4,192’ 4,196’ 4,017’ 4,021’ 4‘ 8/24/2021 Open T6U 4,293’ 4,300’ 4,110’ 4,116’ 7‘ 6/8/2021 Open T6L 4,334’ 4,338’ 4,147’ 4,150’ 4‘ 8/24/2021 Open T6A 4,433' 4,445' 4,237' 4,248' 12‘ 8/24/2021 Open T6B 4,459’ 4,461’ 4,261’ 4,263’ 2‘ 8/24/2021 Open T8 4,526’ 4,530’ 4,322’ 4,326’ 4‘ 6/8/2021 Open T9A 4,618' 4,623' 4,405‘ 4,411’ 5 4/14/2021 Open T10 4,633' 4,636' 4,419’ 4,423’ 3 4/13/2021 Open T10A 4,680 4,685’ 4,462’ 4,467 5‘ 6/8/2021 Open T10B 4,721’ 4,723’ 4,500’ 4,502’ 2‘ 6/8/2021 Open T10B 4,726’ 4,730’ 4,504’ 4,508’ 4‘ 6/8/2021 Open T12 4,937’ 4,941’ 4,697’ 4,701’ 4 3/3/2017 Isolated 4,949’ 4,974’ 4,708’ 4,731’ 25 3/3/2017 Isolated 4,994’ 5,013’ 4,749’ 4,767’ 19 3/3/2017 Isolated T17 5,523' 5,543' 4,239’ 4,242’ 20 4/10/2021 Isolated Cement Details 7-5/8” Cement Job: 9-7/8” hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2” Cement Job: 6-3/4” hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,840’ MD. 1 16” 7-5/8” 4-1/2” T3 TOC @ ~2,840’ (2/6/17 CBL) 2 T17 T12 3 4 Bel 134 Bel 135 3/8” Capillary String Proposed to Install Top Bottom MD 0’ ±4,500’ Kaitlyn Barcelona Hilcorp North Slope, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 564-4389 E-mail: kaitlyn.barcelona@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal Received By: Date: DATE: 1/31/2022 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL Kalotsa 2 (PTD 216-155) Pressure Temp Perf Record 01/20/2022 Please include current contact information if different from above. 37' (6HW Received By: 02/07/2022 By Abby Bell at 3:45 pm, Feb 04, 2022 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: ______________________ Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number): 8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071): 10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 8,200 feet 4,880 feet true vertical 7,857 feet N/A feet Effective Depth measured 4,880 feet 1,181 feet true vertical 4,645 feet 1,181 feet Perforation depth Measured depth 3,695 - 4,730 feet True Vertical depth 3,564 - 4,5808 feet Tubing (size, grade, measured and true vertical depth)N/A 1,181 MD Packers and SSSV (type, measured and true vertical depth)Baker Swell Pkr 1,181 TVD SSSV: NA 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Contact Name: Contact Email: Authorized Title:Contact Phone: 7,500psi 2,890psi 6,890psi 8,430psi Burst Collapse 1,410psi 4,790psi 120' 1,379' 7,841'8,184'4-1/2" measuredPlugs Junk measured N/A Length 120' 1,379' Size Conductor Surface Intermediate 16" 7-5/8" Production Liner 8,184' Casing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 216-155 50-133-20659-00-00 N/A 5. Permit to Drill Number:2. Operator Name 4. Well Class Before Work: ADL0359242 / ADL0384372 / FEE-CIRI Ninilchik Field / Beluga-Tyonek Gas Pool Hilcorp Alaska LLC 3800 Centerpoint Dr, Suite 1400 Anchorage, AK 99503 3. Address: Ninilchik Unit Kalotsa 2 measured true vertical Packer Representative Daily Average Production or Injection Data Casing Pressure Tubing Pressure 801,971 0 101 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf MD 120' 1,379' N/A 0 Structural TVD 322-012 Sr Pet Eng: Sr Pet Geo: Sr Res Eng: Authorized Name and Digital Signature with Date: WINJ WAG 582 Water-BblOil-Bbl 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 0 120 Jake Flora jake.flora@hilcorp.com (907) 777-8442Dan Marlowe, Operations Manager L G Form 10-404 Revised 10/2021 Submit Within 30 days of Operations By Meredith Guhl at 2:17 pm, Feb 03, 2022 Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267), ou=Users Date: 2022.02.03 11:51:47 -09'00' Dan Marlowe (1267) DSR-2/3/22 RBDMS HEW 2/4/2022 Updated by JLL 02/01/22 SCHEMATIC Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PBTD = 4,880’ / PBTVD = 4,645’ TD = 8,200’ / TVD = 7,857’ RKB = 18’CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16”Conductor – Driven to Set Depth 84 J-55 Weld 15.01” Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875” Surf 1,379’ 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958” Surf 8,184’ JEWELRY DETAIL No.Depth MD Depth TVD ID Item 1 1,181’ 1,181’ 3.958” Baker Swell Packer 2 4,880’ 4,645’ CIBP Set on 04/13/21 3 4,949’ 4,708’ 3.52” Collapsed casing (3/13/21 caliper) 4 6,744’ 6,402’ <1.75” Unknown restriction / damage (3/13/21 tag) Cement Details 7-5/8” Cement Job: 9-7/8” hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2” Cement Job: 6-3/4” hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,840’ MD. 1 16” 7-5/8” 4-1/2” PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD)FT Date Status BEL 134 3,695’ 3,709’ 3,564’ 3,577’ 14’ 01/21/22 Open BEL 135 3,769’ 3,773’ 3,631’ 3,635’ 4’ 01/20/22 Open T3 4,079' 4,088' 3,914’ 3,923’ 9 4/14/2021 Open T5U 4,135' 4,141' 3,965’ 3,971’ 6 4/14/2021 Open T5L 4,153' 4,163' 4,163‘ 3,982’ 10 4/13/2021 Open T5A 4,192’ 4,196’ 4,017’ 4,021’ 4‘ 8/24/2021 Open T6U 4,293’ 4,300’ 4,110’ 4,116’ 7‘ 6/8/2021 Open T6L 4,334’ 4,338’ 4,147’ 4,150’ 4‘ 8/24/2021 Open T6A 4,433' 4,445' 4,237' 4,248' 12‘ 8/24/2021 Open T6B 4,459’ 4,461’ 4,261’ 4,263’ 2‘ 8/24/2021 Open T8 4,526’ 4,530’ 4,322’ 4,326’ 4‘ 6/8/2021 Open T9A 4,618' 4,623' 4,405‘ 4,411’ 5 4/14/2021 Open T10 4,633' 4,636' 4,419’ 4,423’ 3 4/13/2021 Open T10A 4,680 4,685’ 4,462’ 4,467 5‘ 6/8/2021 Open T10B 4,721’ 4,723’ 4,500’ 4,502’ 2‘ 6/8/2021 Open T10B 4,726’ 4,730’ 4,504’ 4,508’ 4‘ 6/8/2021 Open T12 4,937’ 4,941’ 4,697’ 4,701’ 4 3/3/2017 Isolated 4,949’ 4,974’ 4,708’ 4,731’ 25 3/3/2017 Isolated 4,994’ 5,013’ 4,749’ 4,767’ 19 3/3/2017 Isolated T17 5,523' 5,543' 4,239’ 4,242’ 20 4/10/2021 Isolated T3 TOC @ ~2,840’ (2/6/17 CBL) 2 T17 T123 4 Bel 134 Bel 135 BEL 134 3,695’ 3,709’ 3,564’ 3,577’ 14’ 01/21/22 Open BEL 135 3,769’ 3,773’ 3,631’ 3,635’ 4’ 01/20/22 Open ()()()() ,,,,p// Rig Start Date End Date Eline 1/20/22 1/21/22 AKEL crew arrives at facility and obtains permit, TGSM. Warm up eline equipment and rig up. RIH with GPT tool and perform flowing pressure temperature survey from surface to PBTD (4740'). No fluid level found. Arm and RIH with 14' 2- 7/8" HC gun loaded at 6 SPF. Correlate to open hole log and send to town for correction. Geologist sent correction and 1 foot added to log. Perforated Beluga 134 from 3695-3709' with the well flowing. HSU flowing at 3.9 mmcf prior to perforating. POOH. Break off lubricator and lay down gun. All shots fired and gun was moist. Increase of ~300 mcf flow at HSU. RDMO eline. Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Kalotsa 2 50-133-20659-00-00 216-132 01/20/2022 - Thursday AKEL crew arrives at facility and obtains permit, TGSM. Rig up eline and pressure test to 250 psi low / 1500 psi high. RIH with well flowing and perform GPT survey across all perforations. POOH. Arm and RIH with 14' 2-7/8 HC gun loaded at 6 SPF. Correlate to open hole log and send to town for correction. Subtract one foot and perforate Beluga 135 from 3769- 3773'. Rate at HSU 1 increases from 3.2 mmscf to 3.8 mmscf. POOH. Break off lubricator and lay down same. Inspect gun all shots fired and gun was damp. 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SURFHGXUHV WR EH LQFOXGHG LQ WKLV 6XQGU\ 7RS RI SURSRVHG SHUI LQWHUYDO FKDQJHG WR SURYLGH PRUH FHPHQW LVRODWLRQ DERYH WKH SHUIV EMP a 0' hƉĚĂƚĞĚďǇZZϬϵͲϭϬͲϮϭ ^,Dd/ EŝŶŝůĐŚŝŬ tĞůů͗<ĂůŽƚƐĂηϮ Wd͗ϮϭϲͲϭϱϱ W/͗ϱϬͲϭϯϯͲϮϬϲϱϵͲϬϬͲϬϬ Wdсϰ͕ϴϴϬ͛ͬWdsсϰ͕ϭϯϳ͛ dсϴ͕ϮϬϬ͛ͬdsсϳ͕ϴϱϳ͛ Z<сϭϴ͛^/E'd/> ^ŝǌĞ dǇƉĞ tƚ 'ƌĂĚĞ ŽŶŶ͘ / dŽƉ ƚŵ ϭϲ͟ŽŶĚƵĐƚŽƌʹƌŝǀĞŶ ƚŽ^ĞƚĞƉƚŚ ϴϰ :Ͳϱϱ tĞůĚ ϭϱ͘Ϭϭ͟ ^ƵƌĨ ϭϮϬΖ ϳͲϱͬϴΗ ^ƵƌĨƐŐ Ϯϵ͘ϳ >ͲϴϬ d ϲ͘ϴϳϱ͟ ^ƵƌĨ ϭ͕ϯϳϵ͛ ϰͲϭͬϮΗ WƌŽĚƐŐ ϭϮ͘ϲ >ͲϴϬ tͬ,d ϯ͘ϵϱϴ͟ ^ƵƌĨ ϴ͕ϭϴϰ͛ :t>Zzd/> EŽ͘ĞƉƚŚ D ĞƉƚŚ ds/ /ƚĞŵ ϭ ϭ͕ϭϴϭ͛ ϭ͕ϭϴϭ͛ ϯ͘ϵϱϴ͟ ĂŬĞƌ^ǁĞůůWĂĐŬĞƌ Ϯ ϰ͕ϴϴϬ͛ ϰ͕ϲϰϱ͛ /W^ĞƚŽŶϬϰͬϭϯͬϮϭ ϯ ϰ͕ϵϰϵ͛ ϰ͕ϳϬϴ͛ ϯ͘ϱϮ͟ ŽůůĂƉƐĞĚĐĂƐŝŶŐ;ϯͬϭϯͬϮϭĐĂůŝƉĞƌͿ ϰ ϲ͕ϳϰϰ͛ ϲ͕ϰϬϮ͛ фϭ͘ϳϱ͟ hŶŬŶŽǁŶƌĞƐƚƌŝĐƚŝŽŶͬĚĂŵĂŐĞ;ϯͬϭϯͬϮϭƚĂŐͿ ĞŵĞŶƚĞƚĂŝůƐ ϳͲϱͬϴ͟ĞŵĞŶƚ:Žď͗ϵͲϳͬϴ͟ŚŽůĞ͘ϴϲďďůƐϭϮ͘ϬηůĂƐƐůĞĂĚ͕ĂŶĚϯϯďďůƐϭϱ͘ϰηůĂƐƐ ƚĂŝů͘EŽůŽƐƐĞƐ͕ϰϳďďůƐĐĞŵĞŶƚƚŽƐƵƌĨĂĐĞ͘ZĞĐŝƉƌŽĐĂƚĞĚĚƵƌŝŶŐũŽď͘ ϰͲϭͬϮ͟ĞŵĞŶƚ:Žď͗ϲͲϯͬϰ͟ŚŽůĞ͘ϭϴϭďďůƐϭϯ͘ϱηůĂƐƐ'ůĞĂĚ͕ĂŶĚϯϲ͘ϰďďůƐϭϱ͘ϯηůĂƐƐ' ƚĂŝů͘ϭϮďďůůŽƐƐĞƐĚƵƌŝŶŐũŽď͕ŶŽĐĞŵĞŶƚƚŽƐƵƌĨĂĐĞ͘EŽƌĞĐŝƉƌŽĐĂƚŝŽŶĚƵƌŝŶŐũŽď͘ŝĚ ŶŽƚďƵŵƉƉůƵŐ͘Ϯͬϲͬϭϳ^DdĨŽƵŶĚdŽĂƚΕϮ͕ϴϰϬ͛D͘ ´ ´ ´ 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:KLOHDOOUHDVRQDEOHFDUHKDVEHHQWDNHQWRDYRLGWKHWUDQVPLVVLRQRIYLUXVHVLWLVWKHUHVSRQVLELOLW\RIWKHUHFLSLHQWWRHQVXUHWKDWWKHRQZDUGWUDQVPLVVLRQ RSHQLQJRUXVHRIWKLVPHVVDJHDQGDQ\DWWDFKPHQWVZLOOQRWDGYHUVHO\DIIHFWLWVV\VWHPVRUGDWD1RUHVSRQVLELOLW\LVDFFHSWHGE\WKHFRPSDQ\LQWKLVUHJDUGDQG WKHUHFLSLHQWVKRXOGFDUU\RXWVXFKYLUXVDQGRWKHUFKHFNVDVLWFRQVLGHUVDSSURSULDWH Kaitlyn Barcelona Hilcorp North Slope, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 E-mail: kaitlyn.barcelona@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal Received By: Date: DATE: 10/27/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL KALOTSA 2 (PTD 216-155) GPT/PERF 08/24/2021 Please include current contact information if different from above. 11/02/2021 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: ____ Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 8,200 feet 4,880 feet true vertical 7,857 feet N/A feet Effective Depth measured 4,880 feet 1,181 feet true vertical 4,137 feet 1,181 feet 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)Baker Swell Pkr; N/A 1,181' MD 1,181' TVD N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Ryan Rupert Authorized Title:Operations Manager Contact Email: Contact Phone:777-8503 ryan.rupert@hilcorp.com Senior Engineer:Senior Res. Engineer: Burst 2,980psi 8,430psi 120' 1,379'6,890psi Collapse 1,410psi 4,790psi 7,500psi Casing Structural 16" 7-5/8" Length 120' 1,379' 8,184' Conductor Surface Intermediate Production Authorized Signature with date: Authorized Name: 0 Casing Pressure Liner 1,002 0 Representative Daily Average Production or Injection Data 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 321-242 71 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 0 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 216-155 50-133-20659-00-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 860 Kalotsa 2 N/A ADL384372 / ADL0359242 / FEE-CIRI Plugs Junk measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Ninilchik - Beluga/Tyonek Gas PoolN/A measured TVD Tubing PressureOil-Bbl measured true vertical Packer 4-1/2"8,184'7,841' WINJ WAG 481 Water-Bbl MD 120' 1,379' 0 t Fra O 6. A G L PG , R _ Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Meredith Guhl at 8:12 am, Sep 17, 2021 Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267), ou=Users Date: 2021.09.16 16:10:42 -08'00' Dan Marlowe (1267) BJM 11/4/21 SFD 9/20/2021RBDMS HEW 9/17/2021 DSR-9/17/21 Updated by CRR 09-10-21 SCHEMATIC Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PBTD = 4,880’ / PBTVD = 4,137’ TD = 8,200’ / TVD = 7,857’ RKB = 18’ CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16” Conductor – Driven to Set Depth 84 J-55 Weld 15.01” Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875” Surf 1,379’ 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958” Surf 8,184’ JEWELRY DETAIL No. Depth ID Item 1 1,181’ 3.958” Baker Swell Packer 2 4,880’ CIBP Set on 04/13/21 3 4,949’ 3.52” Collapsed casing (3/13/21 caliper) 4 6,744’ <1.75” Unknown restriction / damage (3/13/21 tag) Cement Details 7-5/8” Cement Job: 9-7/8” hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2” Cement Job: 6-3/4” hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,840’ MD. 1 16” 7-5/8” 4-1/2” PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Date Status T3 4,079' 4,088' 3,914’ 3,923’ 9 4/14/2021 Open T5U 4,135' 4,141' 3,965’ 3,971’ 6 4/14/2021 Open T5L 4,153' 4,163' 4,163‘ 3,982’ 10 4/13/2021 Open T5A 4,192’ 4,196’ 4,017’ 4,021’ 4‘ 8/24/2021 Open T6U 4,293’ 4,300’ 4,110’ 4,116’ 7‘ 6/8/2021 Open T6L 4,334’ 4,338’ 4,147’ 4,150’ 4‘ 8/24/2021 Open T6A 4,433' 4,445' 4,237' 4,248' 12‘ 8/24/2021 Open T6B 4,459’ 4,461’ 4,261’ 4,263’ 2‘ 8/24/2021 Open T8 4,526’ 4,530’ 4,322’ 4,326’ 4‘ 6/8/2021 Open T9A 4,618' 4,623' 4,405‘ 4,411’ 5 4/14/2021 Open T10 4,633' 4,636' 4,419’ 4,423’ 3 4/13/2021 Open T10A 4,680 4,685’ 4,462’ 4,467 5‘ 6/8/2021 Open T10B 4,721’ 4,723’ 4,500’ 4,502’ 2‘ 6/8/2021 Open T10B 4,726’ 4,730’ 4,504’ 4,508’ 4‘ 6/8/2021 Open T12 4,937’ 4,941’ 4,697’ 4,701’ 4 3/3/2017 Isolated 4,949’ 4,974’ 4,708’ 4,731’ 25 3/3/2017 Isolated 4,994’ 5,013’ 4,749’ 4,767’ 19 3/3/2017 Isolated T17 5,523' 5,543' 4,239’ 4,242’ 20 4/10/2021 Isolated T6A TOC @ ~2,840’ (2/6/17 CBL) 2 T17 T10A/B T9A T5L T5U T3 T12 3 4 T8 T6B T6L T6U T5A p T5A 4,192’4,196’4,017’4,021’4‘8/24/2021 Open T6U 4,293’4,300’4,110’4,116’7‘6/8/2021 Open T6L 4,334’4,338’4,147’4,150’4‘8/24/2021 Open T6A 4,433'4,445'4,237'4,248' 12‘8/24/2021 Open T6B 4,459’4,461’4,261’4,263’2‘8/24/2021 Open T8 4,526’4,530’4,322’4,326’4‘6/8/2021 Open ,,,,//p T10A 4,680 4,685’4,462’4,467 5‘6/8/2021 Open T10B 4,721’4,723’4,500’4,502’ 2‘6/8/2021 Open T10B 4,726’4,730’4,504’4,508’4‘6/8/2021 Open p Rig Start Date End Date 6/8/21 8/24/21 08/24/2021 - Tuesday 7:30 ARRIVE ON LOC, JSA, RIG UP UNITS PT LU TO 2,500 PSI. 9:00 RIH WITH 2-3/4" GPT AND 12' AND 2' OF 2-7/8" CONNEX 6SPF LOG GPT TO TD (4,823') - GUN1 PERF @ 4,459'- 4,461',24' FROM CCL TO TOP SHOT, GUN1 CCL DEPTH = 4,435', GUN2 PERF @ 4,433'-4,445', 10.5' FROM CCL TO TOP SHOT, GUN2 CCL DEPTH = 4,422.5'. RIH WITH 2-3/4" GPT AND 4' AND 4' OF 2-7/8" CONNEX 6SPF - GUN3 PERF @ 4,334'- 4,338',16.5' FROM CCL TO TOP SHOT, GUN1 CCL DEPTH = 4,317.5', (shot gun 800 lbs over pull to get free) GUN4 PERF @ 4,192-4,196', 9' FROM CCL TO TOP SHOT, GUN2 CCL DEPTH = 4,183' guns did not fire POOH. RIH WITH 2-3/4" GPT AND 4' AND 4' OF 2-7/8" CONNEX 6SPF - GUN3 PERF @ 4,334'-4,338',16.5' FROM CCL TO TOP SHOT, GUN1 CCL DEPTH = 4,317.5', (shot gun 800 lbs over pull to get free) GUN4 PERF @ 4,192-4,196', 9' FROM CCL TO TOP SHOT, GUN2 CCL DEPTH = 4,183'. Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Kalotsa 2 50-133-20659-00-00 216-132 06/08/2021 - Tuesday Yellow Jacket arrives at Kalotsa pad, PTW, PJSM, job scope. Rig up E-line. PT 250 low/2,500 high. MU three 2-7/8" Razor 6/60 4', 2', & 5' guns, with selective switches and GPT. GPT on way in hole, saw some gradient change at ~1,720'MD and ~2,200 MD, Compressor SD as we run in hole stopping production for most of the run. Tagged bottom at 4,846' ELMD (corrected). Make correlation pass. send to town, no correction needed. Spot & shoot 4' gun #1 in the T-10bI sand from 4,726'-4,730' at 10:23a. Rate was 385mcf at 53psiFWHP. after 35 minutes rate was 400mcf at 55psi FWHP. No move needed for gun #2 given BHA space out. Shoot 2' gun #2 in the T-10Bu sand from 4721'-4723' at 10:34, rate was 400mcf at 55psi FWHP, after 35 minutes rate was 600mcf at 60psi FWHP. Lost comm with logging tools. Troubleshoot with no success. Need to move up 34.5' for interval #3. Converse with Geo/RE and Taylor Wellman. Decision made to shoot off of encoder depth given short distance between tie-in point and interval #3. Spot & shoot 5' gun #3 in the T-10A sand from 4,680'-4,685' at 11:17a. Rate was 600mcf at 60psi, after 30 minutes 650~mcf at 60psi. Troubleshoot logging tools again and regain function. Drop back down below all perfs and log OOH. No distinct FL on way OOH. All shots fired, guns came out wet. Appears water is moving up hole. Well HSU high leveled and tripped SSV on way OOH. BOL now. MU two 2-7/8" Razor 6/60 4' & 7' guns with selective switches and CCL &GR. RIH to correlate, send data to town, no correction needed. Spot & shoot 4' gun #4 at 1:46p in the T-8 at 4,526'-4,530'. No noticed rate increase between shots #4 & #5. Correlate depth for gun #5, send data to town, No correction needed. Spot & shoot 7' gun #5 at 2:13 in the T-6u sand at 4,293'-4,300'. Rate was 705mcf at 54psi. The rate and FWHP was not stable due to compressor upsets during perforating activities. 2 hours after #5 gun was fired the rate was 865mcf at 140psi. Dropped soap sticks and rate came up to 1.25mmcf for 20 minutes and settled back to 865mcf. Unloaded and unknown quantity of water to HSU. Spot & shoot 5' gun #3 in the T-10A sand from 4,680'-4,685' Spot & shoot 4' gun #4 at 1:46p in the T-8 at 4,526'-4,530' Spot & shoot 7' gun #5 at 2:13 in the T-6u sand at 4,293'-4,300' - GUN3 PERF @ 4,334'-4,338', GUN4 PERF @ 4,192-4,196', guns did not fire POOH. GUN2 PERF @ 4,433'-4,445', Shoot 2' gun #2 in the T-10Bu sand from 4721'-4723' a Spot & shoot 4' gun #1 in the T-10bI sand from 4,726'-4,730' - GUN1 PERF @ 4,459'- 4,461', David Douglas Hilcorp Alaska, LLC Sr. Geotechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 777-8337 E-mail: david.douglas@hilcorp.com Please acknowledge receipt and return one copy of this transmittal or FAX to 907 564-4422 Received By: Date: Hilcorp North Slope, LLC Date: 06/22/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL: FTP Folder Contents: Log Print Files and LAS Data Files: Well API # PTD # Date Log Type Logging Company FALLS CREEK 3 501332052400 203102 12/17/2020 SET PLUG Yellowjacket FALLS CREEK 3 501332052400 203102 1/27/2021 SET PLUG/GPT Yellowjacket GREYSTONE 1 502312005000 216067 8/9/2020 SET PLUG Yellowjacket KALOTSA 2 50133206590000 216155 6/8/2021 PERF / GPT Yellowjacket KALOTSA 3 50133206610000 217028 7/30/2020 PERF / GPT Yellowjacket KALOTSA 7 50133206930000 220067 1/5/2021 PERF Yellowjacket Please include current contact information if different from above. Received By: 06/28/2021 37' (6HW By Abby Bell at 12:22 pm, Jun 28, 2021 David Douglas Hilcorp Alaska, LLC Geotechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 777-8337 E-mail: david.douglas@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: Hilcorp North Slope, LLC Date: 05/27/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL: FTP Folder Contents: Log Print Files and LAS Data Files: Well API # PTD # Date Log Type Logging Company KALOTSA 1 50133206570000 216132 3/27/2021 SET PATCH/GAMMA RAY Yellowjacket KALOTSA 1 50133206570000 216132 4/23/2021 PERF GAMMA RAY / GPT Yellowjacket KALOTSA 2 50133206590000 216155 4/10/2021 PERF GAMMA RAY Yellowjacket PAXTON 2 50133205730000 207164 2/23/2021 PERF GAMMA RAY Yellowjacket PAXTON 9 50133206470000 214173 3/19/2021 PERF GAMMA RAY Yellowjacket PAXTON 9 50133206470000 214173 4/10/2021 PERF GAMMA RAY Yellowjacket PAXTON 9 50133206470000 216132 4/23/2021 PERF GAMMA RAY Yellowjacket PAXTON 10 50133206910000 220064 4/13/2021 SET WRP / CCL Yellowjacket PAXTON 10 50133206910000 220064 4/20/2021 SET WRP / CCL Yellowjacket SD-1A 50133100020100 185208 4/27/2021 PERF GAMMA RAY / GPT Yellowjacket Please include current contact information if different from above. PTD: 2161550 E-Set: 35201 06/02/2021 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: Patch / N2 Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 8,200 feet 4,880 feet true vertical 7,857 feet N/A feet Effective Depth measured 4,880 feet 1,181 feet true vertical 4,137 feet 1,181 feet 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)Baker Swell Pkr; N/A 1,181' MD 1,181' TVD N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Ryan Rupert Authorized Title:Operations Manager Contact Email: Contact Phone:777-8503 WINJ WAG 18 Water-Bbl MD 120' 1,379' 0 Oil-Bbl measured true vertical Packer 4-1/2"8,184'7,841' measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Ninilchik - Beluga/Tyonek Gas PoolN/A measured TVD Tubing Pressure 910 Kalotsa 2 N/A ADL359272 / ADL384372 / ADL0359242 / FEE-CIRI Plugs Junk STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 216-155 50-133-20659-00-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 321-091 132 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 0 Authorized Signature with date: Authorized Name: 0 Casing Pressure Liner 121 0 Representative Daily Average Production or Injection Data 120' 1,379' 8,183' Conductor Surface Intermediate Production 7,500psi Casing Structural 16" 7-5/8" Length 6,890psi Collapse 1,410psi 4,790psi ryan.rupert@hilcorp.com Senior Engineer:Senior Res. Engineer: Burst 2,980psi 8,430psi 120' 1,379' t Fra O 6. A G L PG , R Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Meredith Guhl at 8:23 am, May 17, 2021 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.05.14 15:35:11 -08'00' Taylor Wellman (2143) BJM 8/10/21 DSR-5/17/21 SFD 5/20/2021 RBDMS HEW 5/17/2021 SFD 5/20/2021 Rig Start Date End Date 3/11/21 4/14/21 Arrive at shop load up tools and equipment travel to location. Arrive @ Susan Dionne check in fill out jsa and work permit travel to Kalotsa pad. Hold jsa on site spot and r/u .125 slickline equipment. Stab on well P/T lub 2,000 high 250 low test was good. Rih w/ 3" gauge ring tag bottom @ 8,015'kb pooh obstruction @ 4,945' seen on weight indicator. Rih w/ 3.75 gauge ring worked tools unable to pass obstruction @ 4,945' kb, pooh. RIH w/ 3.72 broach very sticky still unable to pass obstruction @ 4,945'kb, pooh. RIH w/ 3.71 swedge stiil unable to pass obstruction @ 4,945' kb, pooh. RIH w/ 3.67 swedge unable to b pass through obstruction @ 4,945kb', pooh. RIH w/ 3.61 swedge unable to get past obstruction @4,945kb', pooh. RIH w/3.75 lib sat down at same 4,945'kb, pooh. Ooh r/d slickline secure well for night. Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Kalotsa 2 50-133-20659-00-00 216-132 03/11/2021 - Thursday Travel from shop to Kalotsa 2. Arrive at location, PJSM, Spot equipment, RU and check tools. PT (250 Low, 2,000 High). RIH w/ Head, GR/CCL, Weight, Junk Basket w/ 3.80" Gauge Ring. OAL = 24', OAW = 350 lbs, Max Tool OD = 3.8". Set down @ 4,935'. Pooh. At surface, remove gauge ring. RIH w/ Head, GR/CCL, Weight. OAL = 19', OAW = 300 lbs, Max Tool OD = 3.125". Able to make it through bad spot. Log over area, POOH. At surface, Add gauge ring. RIH w/ Head, GR/CCL, Weight, Junk Basket w/ 3.80" Gauge Ring. OAL = 24', OAW = 350 lbs, Max Tool OD = 3.8". Tag @ 4,944'. POOH. At surface, Rig down and stanby for slickline to drift. Rig down complete, travel to shop. Arrive at shop. 03/12/2021- Friday Rig Start Date End Date 3/11/21 4/14/21 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Kalotsa 2 50-133-20659-00-00 216-132 03/13/2021-Saturday Travel from shop to Kalotsa #2. Arrive at location, Equipment will not start, request heater and start warming up equipment. All equipment started. Begin rigging up. Perform Surface checks on tools. Having issues getting tools, computer and depth to talk to each other. Begin troubleshooting. Tools able to communicate w/ surface computers. Calibrate tools. PT. RIH w/ head, 2 x Weight, 2 x centralizer, 24 MFC, centralizer. OAL = 26", OAW = 250 lbs, Max Tool OD = 1.75". Start repeat pass over known bad spot. Continue RIH to TD. Tagged Hard @ 6,744'. Tried twice to make it deeper. Set down at same spot. Start main pass to surface. (centralizers should have collapsed down to 1.75"). At surface, rig down. Rig down complete, travel to shop. Arrive at shop. 04/10/2021 - Saturday PTW and JSA. Spot and rig up equip and Lubricator. PT to 250 psi low and 2,500 psi high. RIH w/2.75" CCL/Gama and 2.80" GR/JB and set down at 6,744' same as caliper. Called town and decision made to shoot the T-17. Sent hand back to Yellowjacket shop to get 2-7/8" x 20' spent dummy gun. RIH w/ 2-3/4" CCL/GR , 2-7/8 " (3.13" spent) x 20', HC spent dummy gun down to 5,600'. Didn't have any trouble going thru trouble spot at 4,949'. Perfing from 5,523' to 5,543'. POOH. Added 10' more to lubricator for shock sub. Started to pressure test again and o-ring leaked. Replaced o-ring (cut it stabbing back on). PT to 250 low and 2,500 psi high. RIH w/ 2-3/4" CCL/GR , 2-7/8" x 20', Razar HC, 6 spf, 60 deg phase and tie into OHL. Run correlation log and send to town. Get ok to perf from 5,523' to 5,543' w/86 psi. Spot and fire gun w/86 psi on tubing. After 5 min - 89 psi, 10 min - 86 psi and 15 min - 86 psi. POOH. All shots fired and gun was wet. Rig down equipment, secure well and turn over to field. o perf from 5,523' to 5,543' Rig Start Date End Date 3/11/21 4/14/21 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Kalotsa 2 50-133-20659-00-00 216-132 04/14/2021 - Wednesday Safety meeting with crew to discuss todays operations, poor weather conditions, handling of fired guns. Rig up, MU first perf gun into lubricator. Stab on and RIH with perf BHA #3 2-7/8", 60 deg phasing, 6 spf gun with CCL/GR. Log across perf zone and send log to town for correlation, +1.5' correction. Place gun on depth with top shot at 4,135' and bottom shot at 4,141' in T-5U sands. Fire: initial pressure 1,476 psi, 5/10/15 minute readings all stayed at 1,476/1,477 psi. POH with BHA. Discuss with Town, decide to let well flow in attempt to lower pressures and stabilize. Flow well while changing out guns, stabilized at ~1,050 psi, flow at ~800 mcf. RIH with perf gun BHA #4 of same configuration. Log across perf zone and send log to town for correlation, no correction. Place gun on depth with top shot at 4,079' and bottom shot at 4,088' in T-3 sands. Fire: initial pressure 1,046 psi, 5/10/15 minute readings 1,039/1,034/1,033 psi with rate consistent at ~800 mcf. POH with BHA. Swap out guns, RIH with perf gun BHA #5 of same configuration. Log across perf zone and send log to town for correlation, no correction. Place gun on depth with top shot at 4,617' and bottom shot at 4,623' in T-9A sands. Fire: initial pressure 1,012 psi, 5/10/15 minute readings all 1,015 psi with rate consistent at ~735-760 mcf. POH with BHA. Decision is to not conduct any more perforations at this time. RD E-Line equipment. Secure well, hand over to Ops. 04/13/2021 - Tuesday MIRU with Halliburton E-line unit. Well has ~750 psi on tubing (Ops used gas assist from other well in attempt to push fluid away). NU BOP, MU tool string and lubricator assembly. Stab on with lubricator, pressure test. RIH with GR / CCL / Temp tool to log for depth correlation and water level. Log from 4,950' to 3,300', POH and send files to town for correlation. On depth, no correction needed. Break off lubricator and swap out tools to CIBP BHA. MU lubricator and stab on. RIH, set CIBP at 4,880', positive indication of fire. Pick up, set down to confirm set. POH. RIH with perf BHA #1, 2-7/8" guns with 60 deg phasing, 6 spf, GeoRazor charge. Log CCL, send data to town for correlation, -3' correction. Set on depth with top shot at 4,633', bottom shot at 4,636'. Fire: initial pressure of 672 psi, 5/10/15 min readings 690/700/710 psi. POH with perf assembly. Swap out to perf BHA #2 with same configuration. RIH, log CCL, send data to town for correlation. Set on depth with top shot at 4,153', bottom shot at 4,163'. Fire: initial pressure at 866 psi, 5/10/15 min readings of 907/930/960 psi. Pull to surface, pop off and lay down gun. Inspect firing head, need to re- dress. Secure well. Break off spent gun, separate BHA. Re-dress firing head. Secure vehicles. Depart for evening. top shot at 4,153', bottom shot at 4,163' top shot at 4,135' and bottom shot at 4,141' in T-5U sands. Fire: i top shot at 4,617' and bottom shot at 4,623' in T-9A sands. Fire: top shot at 4,079' and bottom shot at 4,088' in T-3 sands. Fire: RIH, set CIBP at 4,880', on depth with top shot at 4,633', bottom shot at 4,636'. Updated by CRR 04-28-21 SCHEMATIC Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PBTD = 4,880’ / PBTVD = 4,137’ TD = 8,200’ / TVD = 7,857’ RKB = 18’ CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16” Conductor – Driven to Set Depth 84 J-55 Weld 15.01” Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875” Surf 1,379’ 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958” Surf 8,184’ JEWELRY DETAIL No. Depth ID Item 1 1,181’ 3.958” Baker Swell Packer 2 4,880’ CIBP Set on 04/13/21 3 4,949’ 3.52” Collapsed casing (3/13/21 caliper) 4 6,744’ <1.75” Unknown restriction / damage (3/13/21 tag) Cement Details 7-5/8” Cement Job: 9-7/8” hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2” Cement Job: 6-3/4” hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,840’ MD. 1 16” 7-5/8” 4-1/2” PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Date Status T3 4,079' 4,088' 3,914’ 3,923’ 9 4/14/2021 Open T5U 4,135' 4,141' 3,965’ 3,971’ 6 4/14/2021 Open T5L 4,153' 4,163' 4,163‘ 3,982’ 10 4/13/2021 Open T9A 4,618' 4,623' 4,405‘ 4,411’ 5 4/14/2021 Open T10 4,633' 4,636' 4,419’ 4,423’ 3 4/13/2021 Open T12 4,937’ 4,941’ 4,697’ 4,701’ 4 3/3/2017 Isolated 4,949’ 4,974’ 4,708’ 4,731’ 25 3/3/2017 Isolated 4,994’ 5,013’ 4,749’ 4,767’ 19 3/3/2017 Isolated T17 5,523' 5,543' 4,239’ 4,242’ 20 4/10/2021 Isolated T12 TOC @ ~2,840’ (2/6/17 CBL) 2 T17 T10 T9A T5L T5U T3 T12 3 4 p( )()p( )() T3 4,079'4,088' 3,914’3,923’9 4/14/2021 Open T5U 4,135'4,141' 3,965’3,971’6 4/14/2021 Open T5L 4,153'4,163'4,163‘3,982’10 4/13/2021 Open T9A 4,618'4,623'4,405‘4,411’5 4/14/2021 Open T10 4,633'4,636'4,419’4,423’3 4/13/2021 Open p( )()p( )() T17 5,523'5,543' 4,239’4,242’20 4/10/2021 Isolated 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: _Patch/N2 / Cap string__ 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.W ell 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): 8,200'N/A Casing Collapse Structural Conductor 1,410psi Surface 4,790psi Intermediate Production 7,500psi 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: Ryan Rupert Operations Manager Contact Email: Contact Phone: 777-8503 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng 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: May 31, 2021 N/A 8,184' Perforation Depth MD (ft): See Attached Schematic 8,184'7,841'4-1/2" 16" 7-5/8" 120' 1,379' 2,980psi 6,890psi 120' 1,379' 120' 1,379' N/A TVD Burst N/A 8,430psi MDLengthSize CO 701C 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 ADL359272 / ADL384372 / ADL0359242 / FEE-CIRI 216-155 50-133-20659-00-00 Kalotsa-02 Ninilchik - Beluga/Tyonek Gas Pool COMMISSION USE ONLY Authorized Name: Tubing Grade:Tubing MD (ft): See Attached Schematic ryan.rupert@hilcorp.com 7,857'4,880'4,137'~1598 psi 4,880' Baker Swell Pkr; N/A 1,181' MD (1,181' TVD); N/A Perforation Depth TVD (ft):Tubing Size: m n P 66 t _ Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Meredith Guhl at 1:50 pm, May 17, 2021 321-242 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.05.17 11:54:15 -08'00' Taylor Wellman (2143) DSR-6/1/21 Separate sundry required for capillary string installation. SFD 5/20/2021 BJM 6/1/21 10-404 SFD 5/20/2021dts 6/1/2021 6/1/21 Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2021.06.01 12:03:39 -08'00' RBDMS HEW 6/2/2021 Well Prognosis Well: Kalotsa-02 Date: 5/14/2021 Well Name:Kalotsa-02 API Number:50-113-20659-00-00 Current Status:Gas Producer Leg:N/A Regulatory Contact:Donna Ambruz 777-8305 Permit to Drill Number:216-155 First Call Engineer:Ryan Rupert (907) 777-8503 (O)(907) 301-1736 (C) Second Call Engineer:Ted Kramer (907) 777-8420 (O)(985) 867-0665 (C) Maximum Expected BHP:~ 2039 psi @ 4411’ TVD Using T-9A RFT data from Kalotsa-07 RFT (2020) Max. Potential Surface Pressure:~ 1598 psi Using Max BHP minus 0.1 psi/ft. gas gradient to surface Well Summary Kalotsa 2 has solely produced out of the T12 from initial completion until loading up in January 2021. In March- 2021, a shut off of the T-12 was attempted to go after deeper pay, but casing damage limited that intervention. The T-12 and all lower sands were plugged off in April-2021 and perfs in the upper Tyonek were shot. The well is online as of this writing at 485MCFD and 0bwpd at 125psi FTP. The objective of this work is to add additional perfs while keeping the existing production. Notes Regarding Wellbore Condition x Min ID = 3.833” (Drift ID of 4-1/2” Casing) x Max inclination = 26 degrees at 2568’ MD x Max DLS = 3.68 deg / 100’ at 1762’ MD x Drifts o 4/13/21: 6’ x 2-7/8” perf gun made it down to 4636’ MD o 4/13/21: CIBP made it down to 4880’ MD o 3/12/21: 3.80” GR and junk basket made it down on EL to 4935’ MD Risks x Nitrogen o Discuss nitrogen asphyxiation concerns and identify any areas where nitrogen could collect and people could enter. o Consider tank placement based on wind direction and current weather forecast (venting Nitrogen during this job) o Ensure all crews are aware of stop work authority Well Prognosis Well: Kalotsa-02 Date: 5/14/2021 E-Line Perf 1. MIRU E-line and pressure control equipment. PT lubricator to 2,500 psi Hi 250 Low. 2. Perform flowing PT survey from PBTD to surface (want light tag) 3. Rig up perf gun (Likely 2-7/8” 4-6 spf) 4. RIH and perforate the sand listed in the table below, per Geo/RE. Sand Perforation Top (MD) Perforation Bottom (MD) Perforation Top (TVD) Perforation Bottom (TVD) Total Footage (MD) T-2 ±3,997’±4,003’±3,839’±3,845’6‘ T-5A ±4,192’±4,196’±4,017’±4,021’4‘ T-6u ±4,293’±4,300’±4,110’±4,116’7‘ T-6L ±4,334’±4,338’±4,147’±4,150’4‘ T-6A ±4,433'±4,445'±4,237'±4,248'12‘ T-6B ±4,459’±4,461’±4,261’±4,263’2‘ T-8 ±4,526’±4,530’±4,322’±4,326’4‘ T-10A ±4,680 ±4,685’±4,462’±4,467 5‘ T-10B ±4,721’±4,730’±4,500’±4,508’9‘ Consult with OE for what WHP to use. Some intervals may be shot while flowing Make correlation pass and send log in to Operations Engineer, Reservoir Engineer and the Geologist. a.Use Gamma/CCL to correlate. b. Record initial and 5/10/15 minute tubing pressures after firing c. Consult with RE/Geo between each perf interval: i. Anthony McConkey: RE - 529-6199 ii. Matthew Petrowsky: Geo – 814-421-6753 5. RD E-Line Unit and turn well over to production. Well Prognosis Well: Kalotsa-02 Date: 5/14/2021 Contingency EL Plug or Patch 1. MIRU E-line, PT lubricator to 250 psi low / 3,500 psi high 2. RIH W/ GPT tool and find fluid level 3. RU Nitrogen Truck a. Push water back into formation b. Use GPT tool to confirm water level is below interval to perf c. Consult OE for pressure to leave on well for perforating 4. Once fluid level is below plug set interval, MU 4-1/2” patch or plug 5. RIH and set CIBP or patch per OE. 6. RD E-Line Unit and turn well over to production. Capstring Procedure (CONTINGENCY): 1. MIRU Cap String Truck, PT lubricator to 2,500 psi Hi 250 Low. 2. Install wellhead packoff. 3. PU 3/8” capillary string. RIH and set @ ±5,100’ MD 4. Set spool of remaining line near well. 5. Rig down Cap String Truck. 6. Turn well over to production. Attachments: 1. Proposed Schematic 2. Standard Well procedure – N2 Operations Submit separate sundry for capstring installation if it is required. - bjm Updated by CRR 05-14-21 PROPOSED SCHEMATIC Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00-00 PBTD = 4,880’ / PBTVD = 4,137’ TD = 8,200’ / TVD = 7,857’ RKB = 18’CASING DETAIL Size Type Wt Grade Conn.ID Top Btm 16”Conductor – Driven to Set Depth 84 J-55 Weld 15.01”Surf 120' 7-5/8"Surf Csg 29.7 L-80 BTC 6.875”Surf 1,379’ 4-1/2"Prod Csg 12.6 L-80 DWC/C HT 3.958”Surf 8,184’ JEWELRY DETAIL No.Depth ID Item 1 1,181’3.958”Baker Swell Packer 2 4,880’CIBP Set on 04/13/21 3 4,949’3.52”Collapsed casing (3/13/21 caliper) 4 6,744’<1.75”Unknown restriction / damage (3/13/21 tag) Cement Details 7-5/8” Cement Job: 9-7/8” hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2” Cement Job: 6-3/4” hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,840’ MD. 1 16” 7-5/8” 4-1/2” PERFORATION DETAIL Sands Top (MD)Btm (MD)Top (TVD)Btm (TVD)FT Date Status T-2 ±3,997’±4,003’±3,839’±3,845’9’TBD Proposed T3 4,079'4,088'3,914’3,923’9 4/14/2021 Open T5U 4,135'4,141'3,965’3,971’6 4/14/2021 Open T5L 4,153'4,163'4,163‘3,982’10 4/13/2021 Open T-5A ±4,192’±4,196’±4,017’±4,021’4‘TBD Proposed T-6u ±4,293’±4,300’±4,110’±4,116’7‘TBD Proposed T-6L ±4,334’±4,338’±4,147’±4,150’4‘TBD Proposed T-6A ±4,433'±4,445'±4,237'±4,248'12‘TBD Proposed T-6B ±4,459’±4,461’±4,261’±4,263’2‘TBD Proposed T-8 ±4,526’±4,530’±4,322’±4,326’4‘TBD Proposed T9A 4,618'4,623'4,405‘4,411’5 4/14/2021 Open T10 4,633'4,636'4,419’4,423’3 4/13/2021 Open T-10A ±4,680 ±4,685’±4,462’±4,467 5‘TBD Proposed T-10B ±4,721’±4,730’±4,500’±4,508’9‘TBD Proposed T12 4,937’4,941’4,697’4,701’4 3/3/2017 Isolated 4,949’4,974’4,708’4,731’25 3/3/2017 Isolated 4,994’5,013’4,749’4,767’19 3/3/2017 Isolated T17 5,523'5,543'4,239’4,242’20 4/10/2021 Isolated TOC @ ~2,840’ (2/6/17 CBL) 2 3 4 STANDARD WELL PROCEDURE NITROGEN OPERATIONS 12/08/2015 FINAL v1 Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. Samuel Gebert Hilcorp Alaska, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: sam.gebert@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: DATE: 05/06/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL KALOTSA 7 (PTD 216-155) PERF 04/13/2021 Please include current contact information if different from above. PTD: 2161550 E-Set: 35101 Received by the AOGCC 05/06/2021 05/06/2021 1.Type of Request:Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: _Patch / 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): 8,200'N/A Casing Collapse Structural Conductor 1,410psi Surface 4,790psi Intermediate Production 7,500psi 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: Ryan Rupert Operations Manager Contact Email: Contact Phone: 777-8503 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng ryan.rupert@hilcorp.com 7,857'8,052'7,710'~2599 psi N/A Baker Swell Pkr; N/A 1,181' MD (1,181' TVD); N/A Perforation Depth TVD (ft):Tubing Size: COMMISSION USE ONLY Authorized Name: Tubing Grade:Tubing MD (ft): See Attached Schematic STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ADL359272 / ADL384372 / FEE-CIRI 216-155 50-133-20659-00-00 Kalotsa-02 Ninilchik - Beluga/Tyonek Gas Pool Length Size CO 701C Hilcorp Alaska, LLC 3800 Centerpoint Dr, Suite 1400 Anchorage Alaska 99503 PRESENT WELL CONDITION SUMMARY N/A TVD Burst N/A 8,430psi MD 2,980psi 6,890psi 120' 1,379' 120' 1,379' 7,841'4-1/2" 16" 7-5/8" 120' 1,379' 8,184' Perforation Depth MD (ft): See Attached Schematic 8,184' 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: March 6, 2021 N/A m n P s 66 t _ Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 10:00 am, Feb 22, 2021 321-091 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.02.19 11:24:27 -09'00' Taylor Wellman (2143) DSR-2/22/21 X BJM 03/04/21 DLB 02/22/2021 0359242 DLB 10-404 Comm. 3/8/21 dts 3/8/2021 JLC 3/8/2021 RBDMS HEW 3/8/2021 Well Prognosis Well: Kalotsa-02 Date: 2/17/2020 Well Name:Kalotsa-02 API Number:50-113-20659-00 Current Status:Gas Producer Leg:N/A Regulatory Contact:Donna Ambruz 777-8305 Permit to Drill Number:216-155 First Call Engineer:Ryan Rupert (907) 777-8503 (O)(907) 301-1736 (C) Second Call Engineer:Ted Kramer (907) 777-8420 (O)(985) 867-0665 (C) Maximum Expected BHP:~ 3342 psi @ 7,426’ TVD (0.45psi/ft. assumed to deepest unknown sand- T-118L) Max. Potential Surface Pressure:~ 2599 psi Using Max BHP minus 0.1 psi/ft. gas gradient to surface). Well Summary Kalotsa 2 has solely produced out of the T12 from initial completion until loading up in January 2021. There are still potential zones to perforate below the T12. Due to the significant water production, and the very low pressure of the lower zones, the T12 perforations need to be isolated in order to produce these lower zones. The objective of this work is to isolate the existing water production from the T-12 sands, and recomplete lower in the well. Notes Regarding Wellbore Condition x Min ID = 3.833” (Drift ID of 4-1/2” Casing) x Max inclination = 26 degrees at 2568’ MD x Max DLS = 3.68 deg / 100’ at 1762’ MD x Drifts o 12/3/18: 1.5” gauge assembly made it down to 8023’ MD o 11/1/17: 3.80” gauge ring and centralizer tagged at 8033 SLMD Risks x Nitrogen o Discuss nitrogen asphyxiation concerns and identify any areas where nitrogen could collect and people could enter. o Consider tank placement based on wind direction and current weather forecast (venting Nitrogen during this job) o Ensure all crews are aware of stop work authority Well Prognosis Well: Kalotsa-02 Date: 2/17/2020 EL Patch(s) Set 1. MIRU EL 2. PT BOP equipment to 250 psi Low / 2,500 psi High. (T-12 RFT pressure measured at 681psi in Kalotsa-07 in 2020) 3. Conduct drifts, and catch a water sample, as necessary 4. PU, RIH with permeant isolation patches and place same across all 3 open perf intervals per below: Sands Top (MD)Btm (MD)Top (TVD)Btm (TVD)ft. T12 4,937’4,941’4,697’4,701’4 4,949’4,974’4,708’4,731’25 4,994’5,013’4,749’4,767’19 a. Likely to be 3 individual patches, one across each interval. TBD b. Patches will be set bottom up c. Make correlation pass and send log in to Operations Engineer, Reservoir Engineer and the Geologist. d.Use Gamma/CCL to correlate. 5. Drift through all patches to mimic a 30’ x 2-7/8” perf gun 6. RDMO EL 7. Load well with source water 8. PT well to 1500psi for 10 minutes to confirm patches are holding (not an integrity test) CONTINGENCY: if patches can’t be set on EL may move to e-coil in the next step, and set patch(s) via e-coil Coiled Tubing 1. MIRU Coiled Tubing, PT BOPE to 4,000 psi Hi 250 Low. Notify AOGCC 24 hrs. in advance of BOP test. 2. RU N2 pumping unit to Coil. 3. PU and RIH w/ coiled tubing and jet nozzle BHA and tag PBTD. 4. Come online with N2 and jet well dry. (WBV = 123bbls) 5. Once well is dry, trap 2200 psi on well. 6. POOH w/ coil. LD BHA. 7. RDMO Coiled Tubing Unit. E-Line Perf 8. MIRU E-line and pressure control equipment. PT lubricator to 3,500 psi Hi 250 Low. Note that the well is pressurized with nitrogen. 9. Rig up perf gun (Likely 2-7/8” 4-6 spf) 9. Bleed pressure down to 2000 psi for perforating. 10. RIH and perforate the sand listed in the table below, per Geo/RE. Set Perm patches notification not required if SLB CT unit. gls Review N2 SOP before displacement (Nitrogen displacement) Well Prognosis Well: Kalotsa-02 Date: 2/17/2020 Sand Perforation Top (MD) Perforation Bottom (MD) Perforation Top (TVD) Perforation Bottom (TVD) Total Footage (MD) Expected BHP (psi) BEL_134 ±3,695'±3,711'±3,564'±3,578'16'772 (RFT in 2020 – Paxton 10) BEL_135 ±3,766'±3,812'±3,628'±3,671'46'477 (RFT in 2020 – Paxton 10) BEL_136 ±3,900'±3,924'±3,750'±3,773'24'435 (RFT in 2020 – Paxton 10) T-2 ±3,997'±4,003'±3,839'±3,845'6'612 (RFT in 2020 - Kalotsa 7) T-3 ±4,079'±4,088'±3,914'±3,923'9'(0.45 psi/ft. gradient) T-5U ±4,135'±4,141'±3,965'±3,971'6'1,727 (RFT in 2017 - Kalotsa 4) T-5L ±4,153'±4,163'±3,982'±3,991'10'1,727 (RFT in 2017 - Kalotsa 4) T-6 ±4,293'±4,300'±4,110'±4,116'7'749 (RFT in 2020 - Kalotsa 7) T-6A ±4,433'±4,445'±4,237'±4,248'12'1,953 (RFT in 2020 - Kalotsa 7) T-9A ±4,617'±4,623'±4,404'±4,411'6'2,039 (RFT in 2020 - Kalotsa 7) T-10 ±4,633'±4,636'±4,419'±4,423'3'1,989 (0.45 psi/ft. gradient) T-17 ±5,522'±5,547'±5,234'±5,258'25'542 (RFT in 2020 - Kalotsa 7) T-18 ±5,693'±5,709'±5,392'±5,407'16'2,430 (0.45 psi/ft. gradient) T-37 ±5,939'±5,943'±5,621'±5,625'4'2,959 (RFT in 2020 - Kalotsa 7) T-43U ±6,099'±6,103'±5,772'±5,775'4'2,598 (0.45 psi/ft. gradient) T-43L ±6,112'±6,127'±5,784'±5,798'25'2,606 (0.45 psi/ft. gradient) T-83U ±7,116'±7,149'±6,774'±6,806'33'643 (RFT in 2020 - Kalotsa 7) T-83L ±7,161'±7,167'±6,818'±6,825'6'643 (RFT in 2020 - Kalotsa 7) T-90U ±7,293'±7,327'±6,951'±6,985'34'565 (RFT in 2017 - Kalotsa 3) T-90M ±7,362'±7,375'±7,019'±7,032'13'706 (RFT in 2017 - Kalotsa 3) T-90L ±7,386'±7,397'±7,044'±7,054'11'706 (RFT in 2017 - Kalotsa 3) T-118U ±7,696'±7,705'±7,354'±7,363'9'3,311 (0.45 psi/ft. gradient) T-118L ±7,758'±7,769'±7,415'±7,426'11'3,339 (0.45 psi/ft. gradient) T-140U ±7,838'±7,865'±7,496'±7,523'27'2,886 (RFT in 2020 - Kalotsa 7) T-140L ±7,890'±7,903'±7,548'±7,561'13'2,886 (RFT in 2020 - Kalotsa 7) Consult with OE for what WHP to use. Some intervals may be shot while flowing Make correlation pass and send log in to Operations Engineer, Reservoir Engineer and the Geologist. a.Use Gamma/CCL to correlate. b. Record initial and 5/10/15 minute tubing pressures after firing c. Consult with RE/Geo between each perf interval: i. Anthony McConkey: RE - 529-6199 ii. Matthew Petrowsky: Geo – 814-421-6753 11. RD E-Line Unit and turn well over to production. T-12 isolated Well Prognosis Well: Kalotsa-02 Date: 2/17/2020 Contingency Plug 1. MIRU E-line, PT lubricator to 250 psi low / 4,500 psi high 2. RIH W/ GPT tool and find fluid level 3. RU Nitrogen Truck a. Push water back into formation b. Use GPT tool to confirm water level is below interval to perf c. Consult OE for pressure to leave on well for perforating 4. Once fluid level is below plug set interval, RIH and set 4-1/2” expandable plug per OE. 5. Continue adding perfs per above 6. RD E-Line Unit and turn well over to production. Attachments: 1. Current schematic 2. Proposed Schematic 3. Standard Well procedure – N2 Operations Updated by CRR 02-11-21 SCHEMATIC Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00 PBTD = 8,052’ / PBTVD = 7,710’ TD = 8,200’ / TVD = 7,857’ RKB = 18’CASING DETAIL Size Type Wt Grade Conn.ID Top Btm 16” Conductor – Driven to Set Depth 84 J-55 Weld 15.01” Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875” Surf 1,379’ 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958” Surf 8,184’ JEWELRY DETAIL No.Depth ID OD Item 1 1,181’3.958”6.875”Baker Swell Packer Cement Details 7-5/8” Cement Job: 9-7/8” hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2” Cement Job: 6-3/4” hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,840’ MD. 1 16” 7-5/8” 4-1/2” PERFORATION DETAIL Sands Top (MD)Btm (MD)Top (TVD)Btm (TVD)ft Size Date T12 4,937’4,941’4,697’4,701’4 2-7/8”03/03/17 4,949’4,974’4,708’4,731’25 2-7/8”03/03/17 4,994’5,013’4,749’4,767’19 2-7/8”03/03/17 T12 TOC @ ~2,840’ (2/6/17 CBL) H2O Updated by CRR 02-11-21 PROPOSED SCHEMATIC Ninilchik Well: Kalotsa #2 PTD: 216-155 API: 50-133-20659-00 PBTD = 8,052’ / PBTVD = 7,710’ TD = 8,200’ / TVD = 7,857’ RKB = 18’CASING DETAIL Size Type Wt Grade Conn.ID Top Btm 16” Conductor – Driven to Set Depth 84 J-55 Weld 15.01” Surf 120' 7-5/8" Surf Csg 29.7 L-80 BTC 6.875” Surf 1,379’ 4-1/2" Prod Csg 12.6 L-80 DWC/C HT 3.958” Surf 8,184’ JEWELRY DETAIL No.Depth ID OD Item 1 1,181’3.958”6.875”Baker Swell Packer 2 4937’3.25”Permanent Patch 3 4949’3.25”Permanent Patch 4 4994’3.25”Permanent Patch Cement Details 7-5/8” Cement Job: 9-7/8” hole. 86bbls 12.0# Class A lead, and 33bbls 15.4# Class A tail. No losses, 47bbls cement to surface. Reciprocated during job. 4-1/2” Cement Job: 6-3/4” hole. 181bbls 13.5# Class G lead, and 36.4bbls 15.3# Class G tail. 12bbl losses during job, no cement to surface. No reciprocation during job. Did not bump plug. 2/6/17 SCMT found ToC at ~2,840’ MD. 1 16” 7-5/8” 4-1/2” Sands Top (MD)Btm (MD)Top (TVD)Btm (TVD)ft Date Status T12 4,937’4,941’4,697’4,701’4 03/03/17 To be isolated 4,949’4,974’4,708’4,731’25 03/03/17 To be isolated 4,994’5,013’4,749’4,767’19 03/03/17 To be isolated See Sundry TBD Proposed T12 TOC @ ~2,840’ (2/6/17 CBL) STANDARD WELL PROCEDURE NITROGEN OPERATIONS 12/08/2015 FINAL v1 Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2161 .55 itNolanRECEIVE Hilcorp Alaska, L� 2 8 7 9 0 GeoTech 3800 Centerpoint Drive fes ;, Anchorage, AK 99503 Tele: 907 777-8308 Hilrnrp Aloolkm.LTA: Fax: 907 777-8510 NOV 1 3 2017 E-mail: snolan@hilcorp.com AOG CC DATA LOGGED 1\ /14/2011 M.K. BENDER DATE 11/10/2017 To: Alaska Oil & Gas Conservation Commission Makana Bender Petroleum Geology Assistant 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL Kalotsa 2 Digital data CD: Sonic, XMRI, and Pressure data PRESSURE 10/3/2017 2:54 PM File folder SONIC 2/28/2017 7:41 AM File folder XRMI 2/28/2017 7:35 AM File folder satiNED FEB 0 6 2018 Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: /Date: 72-)Ag......,e--/) , 4/ . • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION GAS WELL OPEN FLOW POTENTIAL TEST REPORT la.Test: U Initial I__I Annual U Special lb.Type Test: U Stabilized U Non Stabilized U Multipoint []Constant Time ❑Isochronal Q Other: Nodal 2.Operator Name: 5.Date Completed: 11.Permit to Drill Number: Hilcorp Alaska,LLC 03/03/17 216-155 3.Address: 6.Date TD Reached: 12.API Number: 3800 Centerpoint Drive,Suite 1400,Anchorage,AK 99503 01/18/17 50- 133-20659-00 4a.Location of Well(Governmental Section): 7.KB Elevation above MSL(feet): 13.Well Name and Number: Surface: 2231'FSL,452'FWL,Sec 7,TIS,R13W,SM,AK 144.5' Kalotsa 2 Top of Productive Horizon: 8.Plug Back Depth(MD+TVD): 14.Field/Pool(s): 1862'FNL,14'FEL,Sec 12,T1S,R14W,SM,AK 8,140'MD/7,857'TVD Ninilchik Field Total Depth: 9.Total Depth(MD+TVD): Tyonek Gas Pool 1316'FNL,262'FEL,Sec 12,TIS,R14W,SM,AK 8,200'MD/7,857'TVD 4b.Location of Well(State Base Plane Coordinates NAD 27): 10.Land Use Permit: 15.Property Designation: .,,., Surface: x- 209850 y- 2233504 Zone- 4 N/A C061505,ADL359242,ADL384372' TPI: x- 209414 y-2234617 Zone- 4 16.Type of Completion(Describe): Total Depth: x- 209180 y-2235169 Zone- 4 4-1/2"Production String,Perforated 17.Casing Size Weight per foot,lb. I.D.in inches Set at ft, 19.Perforations: From To 4-1/2" 12.6# 3.958" 8,184' 4,937'-4,941' 18.Tubing Size Weight per foot,lb. I.D.in inches Set at ft. 4,949'-4,954' 1°1 0 120 4,954'-4,974' sCpA�E® N/A 4,994'-5,013' 20.Packer set at ft: 21.GOR cf/bbl: 22.API Liquid Hydrocardbons: 23.Specific Gravity Flowing Fluid(G): 111- 1,181' 0.56 24a.Producing through: 24b.Reservoir Temp: 24c.Reservoir Pressure: 24d.Barometric Pressure(Pa): ❑Tubing 0 Casing 99 F° 2,122 psia @ Datum 4,575 TVDSS psia 25.Length of Flow Channel(L): Vertical Depth(H): Gg: %CO2: %N2: %H2S: Prover: Meter Run: Taps: 0.56 0 0 26. FLOW DATA TUBING DATA CASING DATA Prover Choke Pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow No. Line X Orifice psig Hw F° psig F° psig F° Hr. Size(in.) Size(in.) 1. X 2. X 3. X 4. X 5. X Basic Coefficient Pressure Flow Temp. Gravity Factor Super Comp. Rate of Flow No. (24-Hour) d hwPm Pm Factor Fg Factor 01 Mcfd Fb or Fp Ft Fpv 1. 2. 3. 4. 5. Temperature for Separator for Flowing No. PrT Tr z Gas Fluid Gg G 1. 2. 3. Critical Pressure 4. Critical Temperature 5. Form 10-421 Rev. 7/2009 CONTINUED ON REVERSE SIDERBDMSSubmit in Duplicate 1, /SEP - 6 2017 • • Pc Pc2 Pf Pf2 No. Pt Pte Pc2-Pt2 Pw Pw2 Pc2-Pw2 Ps Pse Pf2-Ps2 1. 2. 3. 4. 5. 25. AOF (Mcfd) 26,315 Remarks: I hereby certify th the fo ••• n• ' true and correct to the best of my knowledge. Signed `•01111.111p Title Reservoir Engineer Date 09/06/17 DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producin face were reduced to zero psia Fb Basic orifice factor Mcfd/ Pm Fp Basic critical flow prover or positive choke factor Mcfd/psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= 'h1Z dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air=1.000), dimensionless Gg Specific gravity of separator gas(air=1.00), dimensionless GOR Gas-oil ratio, cu. ft. of gas(14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet(TVD) L Length of flow channel,feet(MD) n Exponent(slope)of back-pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut-in wellhead pressure, psia Pf Shut-in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia Q Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back-Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10-421 Revised 7/2009 Side 2 • • -- I p g p 1 I 5 tg I h mN Z1 110 HUHU • • • S 6 E pa $2R0E2yg22R22222222 4tAil2 1 11 00111111=H • O I q � rTT � ixiP - tr ,dmtOwBs1g Rcl 111 4MODIHN1044 OW18 sss$sasssssssgigggnsas$ o omoopo0000000000000 O O o m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 � $ 0000000000000000000 v t.h 0.0.00-00.000-00. • $I-00.00.00.0.00-00. 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Q I o o to N N c'r-c!C)0 0 ce) ,--- g 1- 0 C N = N N Ce O p c I- ca 2 c f0 o N o op w N o o o Q o o tc c c U E a v -o ° H ° p E 2 o E m E E ¢ a 2 0 a a) c.) o TD 0 0 0 • • Guhl, Meredith D (DOA) From: Seth Nolan <snolan@hilcorp.com> Sent: Monday,June 19, 2017 3:21 PM To: Guhl, Meredith D (DOA) Subject: RE: Kalotsa 2, PTD 216-155, Sidewall Core Analyses? Meredith, I submitted the data on Friday, addressed to Makana. Cheers, Seth Nolan GeoTech Hilcorp Alaska LLC 3800 Centerpoint Dr. Anchorage,AK 99524 Office:907.777.8308 snolan@hilcorp.com From: Guhl, Meredith D (DOA) [mailto:meredith.guhl@alaska.gov] Sent: Monday,June 19, 2017 3:20 PM To:Seth Nolan <snolan@hilcorp.com> Cc: Davies, Stephen F (DOA)<steve.davies@alaska.gov>; Schwartz, Guy L(DOA)<guy.schwartz@alaska.gov> Subject: FW: Kalotsa 2, PTD 216-155, Sidewall Core Analyses? Hello Seth, Can you assist me with this please? I haven't heard back from Cody. Thank you, Meredith From:Guhl, Meredith D (DOA) Sent: Friday,June 9, 2017 1:41 PM To:Cody Dinger-(C)<cdinger@hilcorp.com> Cc: Davies, Stephen F(DOA)<steve.davies@alaska.gov>; Schwartz,Guy L(DOA)<guy.schwartz@alaska.gov> Subject: Kalotsa 2, PTD 216-155, Sidewall Core Analyses? Hello Cody, I'm completing the compliance review of Kalotsa 2, PTD 216-155,completed March 3, 2017.On the 10-407 form it was reported that sidewall cores were taken and that analyses were still pending at time of 10-407 submittal. Do you have an estimated time for when the analyses will be complete? Thank you, Meredith 1 Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W.7th Ave,Anchorage,AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 2 21 62155 iteth Nolan Hilcorp Alaska, LLC J 0 GeoTech • 3800 Centerpoint Drive Anchorage, AK 99503 RECEIVED Tele: 907 777-8308 Hil�v�rp Am.LIR: Fax: 907 777-8510 E-mail: snolan@hilcorp.com JUN 162017 AOGCC DATE 06/16/2017 To: Alaska Oil & Gas Conservation Commission Makana Bender Petroleum Geology Assistant 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL Kalotsa 2 Digital data CD: Sidewall Core Data F `HH-94198 CEC Lab Final Data 04-2017.xlsx 6/16/017 8:06 AM Microsoft Excel Wor... 29 KB 1�?Hilcorp Kalotsa No 2 HH-94198 Rotary Core Data 9-10-17.xlsx 6/16/2017 8:06 AM Microsoft Excel War... 126 KB j,hilcorp kalotsa_no2hh-94198 rswc is images.zip 6/16/2017 8:06 AM Compressed(zippe... 9,019 KB ;hilcorp_kalotsa_no2 hh-94198 rswc ts_images set_2.zip 6/16/20178:06 AM Compressed(zippe... 4,347 KB Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: Date: JtLz4k✓ o_e„Aceeft • • 21 6155 28223 Seth Nolan Hilcorp Alaska, LLC GeoTech 3800 Centerpoint Drive ® Anchorage, AK 99503 NilcnrW:kl��ak®.t,hc: RECEIVED Tele: 907 777-8308 Fax: 907 777-8510 E-mail: snolan@hilcorp.com DATA LOGGED MAY 19 20175 '24'2 K. BENDER DATE 05/19/27 GCC 01 To: Alaska Oil & Gas Conservation Commission Makana Bender Petroleum Geology Assistant 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL Kalotsa 2 Prints and Digital data Prints Perforation Record CD 1: At,KALOTSA-2 PERF_02MAR17.pdf 4/12/2017 1:10 PM PDF Document 831 KB KALOTSA-2 PERF_02MAR 17 Correlation.las 4/12/2017 1:22 PM LAS File 96 KB J KALOTSA-2 PERF 02MAR17 FluidLevel.las 4/12/20171:22 PM LAS File 241 KB KALOTSA-2PERF_O2MAR17 img.tiff 4/12/2017 1:10 PM TIFF File 2,454 KB KALOTSA-2 PERF 02MAR17 Perf 4930-493... 4/12/2017 1:17 PM LAS File 32 KB KALOTSA-2 PERF 02MAR17 Perf 4946-496... 4/12/2017 1:22 PM LAS File 36 KB u KALOTSA-2_PERF 02MAR17 Perf 4987-500... 4/12/2017 1:22 PM LAS File 76 KB Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: oJj Date: I Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Monday, May 01, 2017 9:07 AM To: Chad Helgeson Cc: Ted Kramer;Taylor Nasse; Donna Ambruz;Clint Chanley Subject: RE:Temp Abandonment of Kalotsa#2 (PTD#216-155) Chad, Thanks for the info. You have approval to go ahead with removing tree on well Kalotsa#2 as proposed to facilitate rigup(SLR 169)on Kalotsa#3 . This would technically be a "shut-in "well with a few extra safeguards. Once rig leaves Kalotsa#3 then it will revert back to original configuration. Guy Schwartz Sr. Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226) or(Guy.schwartz@alaska.gov). From:Chad Helgeson [mailto:chelgeson@hilcorp.comj Sent:Thursday,April 27,2017 4:04 PM To:Schwartz,Guy L(DOA)<guy.schwartz@alaska.gov> Cc:Ted Kramer<tkramer@hilcorp.com>;Taylor Nasse<tnasse@hilcorp.com>; Donna Ambruz<dambruz@hilcorp.com>; Clint Chanley<cchanley@hilcorp.com> Subject:Temp Abandonment of Kalotsa#2(PTD#216-155) Guy, As we discussed on the phone last Friday, I am sending you this email to document that we are going to temporarily abandon and remove the tree from the Kalotsa#2(PTD#216-155)for the drilling rig to fit efficiently to drill the Kalotsa #3, probably for approximately 60-80 days. As you mentioned in our conversation that this does not require a 10-403, but it would be good for you to be aware that we are removing the tree. We will RIH and set an Evo-Trieve bridge plug and test it from the direction of the formation and then set a BPV in the wellhead, having 2 barriers and then remove the tree and install a blind flange with a 1" port on it. Attached is the wellhead configuration when the tree will be removed. I have also included a schematic with the plug shown on it. Please let me know if you have any questions,we will plan to execute this work late next week. Thanks Chad Helgeson 1 • Ninilchik Unit Kalotsa#2 Proposed 04/25/2017 Hif..aI, U...ka I Lt. Ninilchik Unit Casing hanger, CW, 11 x4 Yz Kalotsa#2 DWC/C box btm x 6.125" RH 16 x 7 5/8 x 4 1/2 stub acme box top,w/7 5/8 od neck,4"type H BPV profile,DD-NL material umo un_u u,al -- Ground level ;-i III ME= „_ vo Tubing head,Cactus C-29L- —� — HPS, 13 5/8 5M x 115M,w/ ��Iqi. __ �I�f.l,-.= 2-2 1/16 5M SSO BPI/BPI di- �'.�• o. 1 - ff°�o�: moi,ii ! i , ,,,,... a j ..It 0 � i ' a i la' II I ` II_ Li — Starting head,Cactus C-29L, _ iiii ■A` r�� Amin 13 5/8 5M x 16 SOW,w/2-2 —1 1/16 5M SSO 4lo /l ° l 1 L.�. 1I I 1Il!: MS III I 16” if1--- RN! 7 5/8" euT u e/'e 4%=" r)L • , . • • Ninilchik TEMPORARY SCHEMATIC PTD:Well 216t1552 API: 50-133-20659-00 RKB=18' CASING DETAIL 16" 4,' Size Type Wt Grade Conn. ID Top Btm Conductor— 16" Driven to Set 84 1-55 Weld 15.01" Surf 120' Depth f 7-5/8" SurfCsg 29.7 1-80 BTC 6.875" Surf 1,379' DWC/C 4-1/2" Prod Csg 12.6 L-80 HT 3.958" Surf 8,184' } 7-5/8" Tj11.1 1*(:- 1 JEWELRY DETAIL TOC @ No. Depth ID OD Item ^2,840' +��}} f'-'67,:!, " 3.958 EVO-TRIEVE BP—Halliburton,4.5" 1 1,181' 3.958" 6.875" Baker Swell Packer 43.-„,i7,d til .4.* 4 ^a' t- ' , PERFORATION DETAIL ,it., ,-0' Sands Top(MD) Btm(MD) Top(TVD) Btm(TVD) ft Size Date ,. r'':;g 4,937' 4,941' 4,697' 4,701' 4 2-7/8" 03/03/17 ` 112 4,949' 4,954' 4,708' 4,713' 5 2-7/8" 03/03/17 +' �' +� 4,954' 4,974' 4,713' 4,731' 20 2-7/8" 03/03/17 ' " 4,994' 5,013' 4,749' 4,767' 19 2-7/8" 03/03/17 • ••' ..."."..'"'‘..—.4i 112 4-1/2" ' . - PBTD=8,140'/PBTVD=7,997' TD=8,200'/TVD=7,857' Updated by CAH 04-27-17 RECEIVED E • STATE OF ALASKA • MAR 3 1 2017 ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT ANCACOCC . la.Well Status: Oil ❑ Gas Q • SPLUG ❑ Other ❑ Abandoned ❑ Suspended❑ lb.Well Class: 20AAC 25.105 20AAC 25.110 Development Q • Exploratory ❑ GINJ ❑ WINJ ❑ WAGE] WDSPL❑ No.of Completions: _1 Service ❑ Stratigraphic Test ❑ 2.Operator Name: 6. Dat Comp Susp.,or 14. Permit to Drill Number/ Sundry: Hilcorp Alaska, LLC Aband.: 3/3/2017. . 216-155/317-072 • 3.Address: 7. Date Spudded: 15.API Number: 3800 Centerpoint Drive,Suite 1400,Anchorage,AK 99503 January 6,2017. . 50-133-20659-00-00' 4a. Location of Well(Governmental Section): 8. Date TD Reached: 16.Well Name and Number: Surface: 2231'FSL,452'FWL,Sec 7,T1S, R13W,SM,AK • January 18,2017. Kalotsa 2 - Top of Productive Interval: 9. Ref Elevations: KB: 144.5• 17. Field/Pool(s):Ninilchik Field 1862'FNL, 14'FEL,Sec 12,TIS, R14W,SM,AK GL:126.5 • BF:126.5 • Beluga/Tyonek Gas Pool • Total Depth: 10. Plug Back Depth MD/TVD: 18. Property Designation: 1316'FNL,262'FEL,Sec 12,T1S, R14W,SM,AK •8,140'MD/7,857'TVD • C061505,ADL359242,ADL384372 ' 4b.Location of Well(State Base Plane Coordinates, NAD 27): 11.Total Depth MD/TVD: 19. Land Use Permit: Surface: x- 209850 • y- 2233504 • Zone- 4 • 8,200'MD/7,857'TVD• • N/A TPI: x- 209414 y- 2234617 Zone- 4 12.SSSV Depth MD/TVD: 20.Thickness of Permafrost MD/TVD: Total Depth: x- 209180 y- 2235169 Zone- 4 N/A N/A 5.Directional or Inclination Survey: Yes Q(attached) No ❑ 13.Water Depth, if Offshore: 21. Re-drill/Lateral Top Window MD/TVD: Submit electronic and printed information per 20 AAC 25.050 N/A (ft MSL) N/A 22. Logs Obtained: List all logs run and,pursuant to AS 31.05.030 and 20 AAC 25.071,submit all electronic data and printed logs within 90 days of completion,suspension,or abandonment,whichever occurs first.Types of logs to be listed include,but are not limited to: mud log,spontaneous potential, gamma ray,caliper, resistivity, porosity,magnetic resonance,dipmeter,formation tester,temperature,cement evaluation,casing collar locator,jewelry,and perforation record. Acronyms may be used.Attach a separate page if necessary 5"Formation Log MD/TVD,2"Formation Log MDITVD,2"LWD Combo Log MD/TVD,2"Gas Ratio Log MD/TVD,2"Drilling Dynamics Log MD/TVD Final Well Report,2"/5"ROP-DGR-EWR-ALD-CTN MD 2"/5"DGR-EWR-ALD-CTN ND Reservoir Saturation Tool PNL-GR-CCL Slim Cement Mapping Tool CBL-VDL-GR-CCL CASING, LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD FT PULLED 16" 84# J-55 Surface 120' Surface 120' Driven 7-5/8" 29.7# L-80 Surface 1,379' Surface 1,379' 9-7/8" 347 sx Class A Cmt 4-1/2" 12.6# L-80 Surface 8,184' Surface 7,841' 6-3/4" 754 sx Class G Cmt 24.Open to production or injection? Yes Q No ❑ 25.TUBING RECORD If Yes,list each interval open(MD/TVD of Top and Bottom;Perforation SIZE DEPTH SET(MD) PACKER SET(MD/TVD) Size and Number): f,, N/A T12 C eirk+ 4937-4941'MD;4967-4701'ND 26.ACID, FRACTURE,CEMENT SQUEEZE, ETC. 49494954'MD;47084713'ND ',- + "'_ 4954-4974'MD;4713-4731'ND Was hydraulic fracturing used during completion? Yes❑ No ❑ • 4994-5013'MD;4749-4767'ND 2](- )II- Per 20 AAC 25.283(i)(2)attach electronic and printed information 2-7/8"/12 SPF ,,, ,a_r DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED (,Ci 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): 3/4/2017 Flowing Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: 3/10/2017 24 Test Period 0 9201.9 0 N/A N/A Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): Press. 1603 0 24-Hour Rate — 0 9201.9 • 0 N/A Form 10-407 Revised 11/2015 / i CONTINUED ON PAGE 2 bmit.ORIGINIAL only,-, //� 5.-, -(7 RBDMS L APR - 3 2011 5.t c7 28.CORE DATA Conventional 11(s): Yes ❑ No ❑ Sidewall Cor•Yes Q No ❑ If Yes, list formations and intervals cored(MD/TVD, From/To),and summarize lithology and presence of oil,gas or water(submit separate pages with this form, if needed).Submit detailed descriptions,core chips, photographs, and all subsequent laboratory analytical results per 20 AAC 25.071. Collected rotary SWC at depths noted in attached sheet.At time of submittal, analysis of SWC is still pending. 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Yes 0 No ❑ Permafrost-Top N/A N/A If yes, list intervals and formations tested, briefly summarizing test results. Permafrost-Base N/A N/A Attach separate pages to this form,if needed,and submit detailed test Top of Productive Interval 4930 4691 information, including reports,per 20 AAC 25.071. Beluga 10 1466 1466 Beluga 135 3729 3595 The Tyonek 12 sand at a depth of 4930-5013 MD was tested for—1 day Top Tyonek 3882 3735 with an IP rate of 9.4 mmcfpd.Well is currently shut in awaiting facility T65 6858 6516 upgrades. __ T90 7278 6935 Formation at total depth:T145 8069 7726 31. List of Attachments: Wellbore Schematic, Drilling and Completion Reports, Definitive Directional Surveys, MW vs Depth, Days vs Depth,Csg and Cmt Reports,Sidewall Core Depths Sheet. Information to be attached includes, but is not limited to:summary of daily operations,wellbore schematic,directional or inclination survey,core analysis, paleontological report, production or well test results, per 20 AAC 25.070. 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Cody Dinger Email: cdinaer(p�hilcorp.com Printed Name: Cody Diger Title: Drilling Tech (r//4 3/3 e / C Signature:.. d _ Phone: 777-8389 Date: INSTRUCTIONS General: This form and the required attachments provide a complete and concise record for each well drilled in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed.All laboratory analytical reports regarding samples or tests from a well must be submitted to the AOGCC,no matter when the analyses are conducted. Item la: Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 1 b: Well Class-Service wells:Gas Injection,Water Injection,Water-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection, Observation,or Other. Item 4b: TPI(Top of Producing Interval). Item 9: The Kelly Bushing,Ground Level,and Base Flange elevations in feet above Mean Sea Level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 15: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report measured depth and true vertical thickness of permafrost.Provide MD and TVD for the top and base of permafrost in Box 29. Item 22: Review the reporting requirements of 20 AAC 25.071 and, pursuant to AS 31.05.030,submit all electronic data and printed logs within 90 days of completion,suspension, or abandonment,whichever occurs first. Item 23: Attached supplemental records should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval(multiple completion),so state in item 1,and in item 23 show the producing intervals for only the interval reported in item 26.(Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing,Gas Lift, Rod Pump, Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other(explain). Item 28: Provide a listing of intervals cored and the corresponding formations,and a brief description in this box. Pursuant to 20 AAC 25.071,submit detailed descriptions,core chips,photographs,and all subsequent laboratory analytical results, including, but not limited to:porosity, permeability,fluid saturation,fluid composition,fluid fluorescence,vitrinite reflectance,geochemical,or paleontology. Item 30: Provide a listing of intervals tested and the corresponding formation,and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Item 31: Pursuant to 20 AAC 25.070,attach to this form:well schematic diagram,summary of daily well operations,directional or inclination survey,and other tests as required including,but not limited to:core analysis,paleontological report,production or well test results. Form 10-407 Revised 11/2015 Submit ORIGINAL Only • • Sidewall Core Data STATION DEPTHS STATION DEPTHS 1 1450.20 54 5698.04 2 1480.15 55 6116.21 3 1510.60 4 1553.39 5 1585.01 6 1605.01 7 1795.01 8 1836.00 9 1853.00 10 1911.00 11 1946.00 12 2004.01 13 2024.00 14 2065.01 15 2095.01 16 2141.02 17 2167.11 18 2220.03 19 2274.06 20 2290.01 21 2306.00 22 2377.04 23 2403.02 24 2465.00 25 2506.13 26 2565.08 27 2592.02 28 2650.18 29 2681.08 30 2708.01 31 3245.00 32 3336.04 33 3374.04 34 3439.01 35 3523.01 36 3561.00 37 3562.00 38 3591.00 39 3723.02 40 3840.00 41 3860.02 42 3902.03 43 3999.45 44 4082.99 45 4157.03 46 4193.01 47 4294.02 48 4436.02 49 4967.03 50 5510.40 51 5524.02 52 5540.03 53 5679.44 • • Ninilchik II SCHEMATIC Well Kalotsa #2 PTD: 216-155 API: 50-133-20659-00 Hilcorp Alaska,LLC - RKB=18' CASING DETAIL 16" a ,�s Size Type Wt Grade Conn. ID Top Btm 1*; Conductor— 16" Driven to Set 84 J-55 Weld 15.01" Surf 120' .. Depth ' 7-5/8" Surf Csg 29.7 L80 BTC 6.875" Surf 1,379' ',t=y '.4.4 DWC/C `9 4-1/2" Prod Csg 12.6 L-80 3.958" Surf 8,184' +< HT a 7-5/8" I 1 it .. .4, JEWELRY DETAIL TOC @ No. Depth ID OD Item a —2,840' 1 1,181' 3.958" 6.875" Baker Swell Packer Coy) 1,i. r " '. `f-f-ei 33X rhe • rats 3a,' 1,7.,, ''1 PERFORATION DETAIL *", , f ' Sands Top(MD) Btm(MD) Top(ND) Btm(TVD) ft Size Date a 'X .n M•rr . , 4,937' 4,941' 4,697' 4,701' 4 2-7/8" 03/03/17 T12 4,949' 4,954' 4,708' 4,713' 5 2-7/8" 03/03/17 far X , 4,954' 4,974' 4,713' 4,731' 20 2-7/8" 03/03/17 41"1'. ,� iiti ' 4,994' 5,013' 4,749' 4,767' 19 2-7/8" 03/03/17 T12 e 6-013 Cdr , A 3 ' 1. # . 4if *l 4-1/2" - 1 PBTD=8,140'/PBTVD=7,997' TD=8,200'/ND=7,857' Updated by CD 03-30-17 • • Hilcorp Energy Company Composite Report Well Name: NINU Kalotsa 2 Field: Ninilchik County/State: ,Alaska (LAT/LONG): evation(RKB): 18 API#:50-133-20659-00 Spud Date: 1/6/2017 Job Name: 1612640D Kalotsa 2 Drilling Contractor AFE#: 1612640D AFE$:$3,644,715 �#>Ytiul..>:ilite.:<:::::::::::.::.:<.;:.;:.;:.;::;:.;:;:;.;:.;:.;:.:<.::.;:.;:.;::,<:;:.:;.;:.;:.;:.;:.;:;<.;:.:;.:;.::.< .;:.;:.;:.;:.;:.;,:::>:;;` >::::.;:.;::.<.;:.;:;;<.... ..;:.:{3 .stxarna iNERMENNEMMENIMENERMINgegginenq 1/3/2017 Clear snow and ice from edge of matting,lower doghouse and stage off pad,stage gen sets off pad,lay out felt and liner.Heat and seam liner together on Drillers side.;Stage boilers,gens and HPU skid off pad.Lay mats on Drillers side,stage cranes,RU and removed derrick from carrier,removed carrier from sub,removed sub from pony walls.;Set pony walls over well#2,set sub base on pony walls,set carrier on sub,set derrick on carrier.Set pit#1.;Set pits#2 and #3.Set mud pump#1.Raise derrick.Spot water tank and raise dog house.Rig up on fig floor.;Finish laying out felt and herculiner.Heat and seam liner together.Install stairs and prep grating in cellar Install starter well head and align with diverter tee.;Weld on starter well head.Lay out mat boards for gen sets and boilers. 1/4/2017 Cont seaming liner for backyard,lay out rig mats for backyard,Peak on loc at 7:00,set pump#2,set HPU and gen units,set boilers,set service shacks.Rolled cranes on loc and set catwalk,set rig;floor windwalls and on pits,received 21 1/4"annular,spot cement silo,released cranes and rig movers at 15:00,strung electric cords,hoses mud lines,spooled drill line onto drum,set gen#3,;MU lower torque tube section,start gen set for lights,scoped up derrick,start installation of Handy Berm.Gave AOGCC 24 hr notice for diverter function test(15:00 hrs on Thursday).;Installed"T"bar on torque tube/derrick.Bridle down blocks.P/U top drive&pin to blocks.Install torque bushing,kelly hose,and hydraulic lines.Stand up gas buster.;Hook up mud lines between mud tanks.Cont. to rig up top drive and rig floor.Take on water to boiler#2.;N/U DSA spool and spool on well head. N/U diverter T and annular preventer.N/U knife valve,riser, and diverter lines. 1/5/2017 Cont to assemble diverter vent line,plug in service shacks,Quadco Rep calibrated koomey gauges and chart recorder,RU koomey lines on diverter,installed flow riser and flow line,staged diverter;signage at pad entrance and both sides of rig,offloaded Sperry tools,hung tarps on sub base openings,chained off stack,function checked diverter system.;Performed diverter function test and draw down test w/4 1/2"test joint.Total Safety calibrated and tested all gas alarms.No issues.Witness of diverter test was waived by AOGCC Jim Regg.;Set wear ring,brought in trailer of HWDP.;Function test iron roughneck.Inspect saver sub.Install elevators.Function test top drive. Function test mud pumps.Hook up steam traps. Rig accepted 21:00 hrs.;lnstall ramps at ends of mat boards.Bring in needed loads from staging pad.Off-load HWDP.;Build spud mud.Prep floor to P/U drill pipe.P/U and rack back in derrick 40 jts DP and 9 jts HWDP.Peak build hooch over centrifuge.C/O out hose on iron roughneck. 1/6/2017 PU rack back HWDP in derrick,test run centrifuge,pull two rig mats in backyard to allow dragon wagons access to cuttings box,received 33 jnts 7 5/8" casing.;MU 9 7/8"Smith PDC and 7"motor w/1.5 deg bend,MU 6 3/4"stab and XO,TIH on HWDP to 97'.MU topdrive and flooded conductor.No leaks. Pressure tested circ lines from pumps to topdrive(OK).;Cont ease in hole and tagged up at 112'and spud well.Drill surface hole from 112'to 344'.Rot wob 1- 3K,306 gpm-368 psi,40 rpm-5600 fl/lbs on bott torque.Once well clear of the conductor,;increased parameters to 3-5K wob,430 gpm-810 psi,60 rpm-5700 ft/lbs on bott torque,ROP 120 to 200 fUhr,MW 8.9 ppg/vis 222.At 344'CBU x 2 in prep to pull up hole for directional tools.;POOH from 344'to 60'.First %)-Vattempt on elevators and pulling tight.MU topdrive and backreamed first two stands.Pulled up hole to bit,bit OK,TIH to stabilizer.;Hold PJSM&P/U 6 3/4" 5 , BHA to TM collar l 112';Break circulation thru directional tools to warm up tools.Program tools as per MWD.Shallow hole test tools(good).Load sources as W� per MWD.;Cont.to P/U 6 3/4"BHA to 344'(NMFC,HWDP&Jars).;Drill 9 718"surface hole from 344'to 367'(lost pump pressure/bad pop off on pump#2).;Circulate with pump#1 and change out pop off on pump#2.;Drill 9 7/8"surface hole from 367'to 670',560 GPM,1950 PSI,PU 35 K,SO 30 K,ROT 32 K,70 RPM,TRQ 6 K,WOB 7-10 K. 1/7/2017 Rack back one stand,RU head pin and circ hose.CO washpipe on topdrive.RD circ hose and head pin,MU topdrive.;Wash to bottom,then work pipe and CBU one time,556 gpm-1765 psi.;Resume drilling surface hole from 673'to 920'.Rotating wob 6K,581 gpm-2018 psi,85 rpm-6100 ft/lbs on bott torque,100 ft/hr ROP,MW 8.9/vis 120,ECD's at 9.4 ppg.BGG 5 units,max 18 units at 731';Pumped a 20 bbl hi-vis nut plug sweep around at 581 gpm-1923 psi,84 rpm- 5400 ft/lbs off bott torque.Had a 30%increase in cuttings to surface with sweep back.Obtained survey on bottom.;Pulled up hole on elevators from 920'to 256'.Pulled 20K over at 800'.Worked one time on elevators and cleaned up.No further issues.Up wt 36K.;Serviced rig and topdrive.;TIH from 256'to 861' with no issues.MU topdrive,filled pipe and washed last stand to bottom with no fill.Down wt 34K.;Drilled surface hole from 920'to TD at 1388'.Rotating wob 10K,594 gpm-2103 psi,85 rpm-7000 fUlbs on bott torque,100 ft/hr ROP,MW 9.0/vis 68,BGG 3 units,max 34 units at 1212'.;Pumped a 20 bbl hi-vis nutplug sweep around and 2 bottoms up.20%increase in cuttinas;Wiper trip from 1,388'to 273'(no issues);Ready rig floor for trip in.C/O pressure sensor for MWD.;RIH from 273'to 1,388'(no issues).;Pumped a 20 bbl hi-vis nutplug sweep around and 3 bottoms up.30%increase in cuttings;POOH from 1,388'to 112'(no issues)Lay down 1 joint HWDP,Jars&NMFC;Remove sources from MWD and down load MWD log data.;Cont.to POOH and lay down 6 3/4"BHA. 9 7/8"bit grade=2,3,CT,G,X,1/16,WT,TD.;Clean and clear floor of BHA tools and equipment.;Cont.to clean and clear floor.Prep rig floor to run casing. 1/8/2017 Pull 12 7/16"ID wear bushing.;R/D drilling bales and R/U casing long bales.C/O grabber dies on top drive.R/U power tongs and casing elevators.Dummy run landing joint(good).;Held PJSM with Weatherford and rig crew,MU shoe track and checked floats(OK),PU RIH 7 5/8"29.7#L-80 BTC casing as per tally to 1354.41'with no issues.(33 jts,10.12 pup joint,16 centralizers).;M/U hanger and landing joint.Land casing on hanger @ 1379.08',1)1U plug launcher and circ lines.Up wt 40K,dwn wt 40K.;Broke circ at 148 gpm-151 psi while R/D casing tongs and SLB rigging up for cementing.Increased to 181 gpm-142 psi and cont to work pipe 10'stroke with no issues.;Staged cement unit and RU hardlines.Held PJSM with rig team and SLB cementers.SLB loaded lines with 2 bbls water and checked for leaks.SLB pressure tested lines at 1100 low 4300 high,good tests.;Rig pumped 27 bbls 10 ppg MudPush II at 3 bpm,79 psi,and shut down. SLB dropped bottom plug and pumped 86 bblsL197 sx112ppq Class A lead cement at 5 bpm,250 psi,followed by 33 bbls•(150 sem)15.4 ppg Class A tail �/- cement at 5.4 bpm.SLB dropped top plug,then displaced with 59.6 bbls 9 ppg Spud Mud at 5 bpm,490 psi.Slowed to 2 bpm with 10 bbl to go.Bumped the �!(� plug and held;1200 psi(FCP of 490 psi)for 3 minutes,bled off and floats held.Bled back.25 bbls to truck.Had 27 bbls MudPush II return to surface and 47 ,w bbls of 11.6 ppg lead cement to surface.Cemnet was;added to both lead and tail cement at 1/4 ppb.Mix water temp at 65 deg.Pumped 50%excess on b'o'th lead and tail.Reciprocated the string throughout most of the job,landed the hanger when;we started seeing string weight drop off.Had no losses.With MudPush to surface,diverted remaining returns to cellar box through the 4"outlet on conductor.Up wt 36K,dwn wt 36K at time of landing;hanger.CIP at 17:54 hrs,1-8-16.RD cleaned up and released Schlumberger.Had an issue with SLB computer as we started lead cement down hole.After 30 minutes of trouble shooting,cont with job.;Cleaned up cellar box and diverter stack,gave AOGCC 24 hr notice for upcoming BOP test.R/D cementers.;Back out landing joint and set pack off.;Rig down diverter line.N/D knife valve,hydril and spacer spools.N/U well head and test 500/5000 psi(good).N/U BOPE • • 1/9/2017 Cont mixing 6%KCL mud while MU spacer spool and BOP stack,MU HCR valves,kill and choke lines.Shipped out diverter and casing equipment,organized location.;lnstall drip pan,flow riser and flow line,RU degasser line from catwalk.Install koomey lines,install steam lines to catwalk.Brought in DP bunks and offloaded same,brought in 4 3/4"directional;tools and offloaded same,serviced centrifugal pump in pit module#2,serviced and fired up boiler#2.;Clean cellar area.Install sub tarps.;R/U test equipment.Flood surface lines.Shell test BOPE.Check for leaks.Pressure bleeding off.Tighten up loose connections and re- inspect lines.;Shell test 250/3500 psi(good).Blow down lines&R/D testing equipment.AOGCC will witness BOPE test @ 0700 hrs.;lnstall 11"ID wear ring;P/U and rack back 20 joints 4 1/2"drill pipe in derrick while wait on AOGCC.;Pull wear ring&prep rig floor to test BOPE. 1/10/2017 Install test plug,flooded stack and choke lines.Shell test BOP stack,AOGCC Rep Jeff Jones on location at 06:45.;Test BOPE at 250 low/3500 high,tested annular at 250 low/2500 high.Topdrive IBOP failed low tests on manual and hydraulic valves.Replaced IBOP and re-tested OK.;Held low tests for 5 minutes 11%1,1 each,high tests for 10 minutes each.Total test time 9.5 hrs with IBOP change.Total Safety calibrated and tested all gas alarms.;Blew down surface lines, S 1, pulled test plug and installed wear ring.Drained u-tube on poorboy degasser.;RU chart recorder to test surface casing Tested to 3500 psi for 30 minutes 4' Good test,held 99.7%pressure.(lost 15 psi).;Blow down test pump and lines.Rig down.Freeze protect test pump.;Prepare rig floor for picking up drill pipe.;Begin strapping,rabbiting,and picking up 41/2"SLR CDS 40 drill pipe.Pick up and rack back 20 stands.;Continue to strap,rabbit,and pick up,stand back 41/2 CDS 40 D.P.;Hauled 4.5 bbls cuttings to KGF.371 bbls hauled to date. Hauled 40.5 bbls junk fluid to KGF.706.5 bbls hauled to date. boo E 1L> Hauled 0 bbls cement to KGF.47.5 bbls hauled to date. No down hole losses 1/11/2017 Cont PU rack back 4 1/2"DP in derrick.Stage BHA on catwalk.Prep rig floor to PU BHA.;Held PJSM,PU 4 3/4"motor with 1.5 deg bend,MU 6 3/4"HDBS PDC,jetted w/6 x 10's,cont PU MU directional BHA.Scribed tools,RFO=301.62.;MU topdrive and circ through tools to warm up same.Plugged in and uploaded MWD,shallow tested OK,held PJSM and loaded sources.;PU NM flex DC's,RIH 1 stand HWDP,PU jars and single HWDP,TIH 3 more stands HWDP.BHA length=495PU and singled in hole to 556'with 4 1/2"DP.;Trip in the hole from 556'to 1259'MD.Tag cement stringer.PWD collar not transmitting any data.Attempt to bring alive by mode switching.No luck.Decide to stay in the hole.;Ream down to float collar.220 gpm,40 rpm,1500 psi pump pressure,4500 ft/lbs torque.Drill float,shoe track and shoe.;Drill 20 feet of new formation to 1408'MD.230 gpm,45 rpm,1400 psi off,1800 psi on bottom,4500 ft/lbs of torque.;Hold prejob in doghouse for mud displacement.Pump 15 bbls spacer from pill pit.Pump pressure spiked when pill reached the bit.Unable to pump.Rack back one stand inside casing,blow down top drive.;Trouble shoot surface equipment.Clean suction screens,discharge screens on mud pumps.Blew air back to pumps.Clear.;Attempt to pump.Pressure up,and bled off several times,appeared to be clearing and then stopped making progress.;Monitor well.Static.POOH from 1350 to 187'MD.Good hole fill.Stop at flex collars,hold prejob for retrieving sources.;Removed sources.Plugged into MWD tool,download.RPM's were not recorded during the spacer pumping job,which correlates with the pressure spike seen.Switch out the telemetry module,and;the PWD collar.(The PWD collar stopped working just prior to drilling the float collar.)Inspect bit,nozzles plugged with cement and rocks,cutters unscathed.L/D motor,pick up new motor.Orient.;Hauled 0 bbls cuttings to KGF.371 bbls hauled to date. Hauled 0 bbls junk fluid to KGF.706.5 bbls hauled to date. Hauled 0 bbls cement to KGF.47.5 bbls hauled to date. No down hole losses 1/12/2017 MU new 4 3/4"motor and bit,LD same,clean shakers,possum belly and belly pans.Cleaned troughs and pit#4.MU joint DP on topdrive and circ through both pumps over shakers.Blow dwn topdrive.;RU test pump and chart recorder,purge air from lines,closed blinds,performed preliminary FIT from surface pumping 5 gallons to 250 psi.Well bled back to 126 psi over 10 minutes,bled back 2 gal.;PU motor w/1.5 deg bend and re-run 6 3/4"PDC jetted at 6 x 10's, cont MU BHA,scribed RFO at 273.75 deg.MU topdrive and circ to warm up tools,plugged in and upload MWD,shallow pulse test good,;PJSM and loaded sources.HSE Rep Matt Hogge did walkthrough of location and rig,no issues.;Cont MU HWDP and jars for a BHA length of 497.52'.PU singled in hole 15 jnts 4 1/2"DP from 497'to 970'.;MU topdrive at 970',circulated surface to surface at 215 gpm-957 psi,shut dwn blew dwn topdrive.;PU and singled in hole another 15 jnts 4 1/2"DP from 970'to 1369'.;MU topdrive,filled pipe then washed down and tagged bottom at 1408'.CBU 1 x at 292 gpm-1136 psi.Held PJSM with rig crew and Peak drivers.;Displaced well to new 9.0 ppg 6%KCL mud at 293 gpm-1440 psi taking returns to cuttings box until good mud to surface,had no i sues.Down pump,cleaned troughs,shakers and pit#4 while RU to FIT.;Pumped 4.0 gals to achieve 320 psi,psi dropped to 190 over 10 minutes.Notified nlling Engineer.Bled back 2.7 gals, EMW 13.5 ooa.:Blew down test lines and RD/freeze protected test pump.;Resumed directio drilling 6 3/4"hole from �= \ 1408'to 1700',kicked off @ 1619'with a 20 foot slide @ 337 Magnetic tool face direction.Motor yield 9°/100'.;275 Gpm,65 Rpm,5 to 10k Wob,36k up,38k Dn,40k Rot weights.4000k Tq off/5500k Tq on.1300 psi off/1500 psi on.ECD=10 ppg EMW.;Directional Drilling from 1700'MD to 2075'MD.Slide 20 feet off the top of each stand.Back ream each stand,MAD pass each slide for Neutron/Density log quality.;275 Gpm,65 Rpm,5 to 10k Wob,36k up,38k Dn,40k Rot weights.4000k Tq off/5500k Tq on.1300 psi off/1500 psi on.ECD=10 ppg EMW.Pump Hi-Vis sweep @ 1928'.30%increase in cuttings Ioad.;Hauled 0 bbls cuttings to KGF.371 bbls hauled to date. Hauled 265 bbls junk fluid to KGF.971.5 bbls hauled to date. Hauled 0 bbls cement to KGF.47.5 bbls hauled to date. No down hole losses;Wellbore position:9.34'distance to plan,5.6'high,7.4'right 1/13/2017 Cont directional drilling 6 3/4"hole from 2075'to 249Q',rot wob 5 to 7K,307 gpm-1996 psi,85 rpm-5900 ft/lbs on bott torque,120 to 180 ft/hr ROP,MW 9.1/vis 65,ECD's at 10.3 ppg,BGG 11 units,;Sliding wob 16K,311 gpm-1730 psi,30 to 40 psi diff,30 ft/hr ROP.Received 85 joints 4 1/2"production casing.;Circulated 3 bottoms up while working pipe,286 gpm-1600 psi,up wt 48K,dwn wt 46K,rot wt 48K.Obtained survey and flow check(static).;Pulled up hole on elevators from 2490'to 1431',up wt 54K.No overpulls no issues.;Serviced rig and topdrive,cleaned suction screens.MI Rep on location servicing centrifuge.;TIH from 1431'to 2482'on elevators,dwn wt 47K.No fill on bottom.Made connection and pumped a 20 bbl hi-vis nutplug sweep until sweep exited drill string.;Resumed drilling 6 3/4"hole from 2490'to 2662'.With sweep to surface had a 50%increase in cuttings at shakers.Rot wob 4K,293 gpm-1890 psi, 80 rpm-6200 ft/lbs on bolt torque,120 to 180 ft/hr ROP;Sliding wob 5K,291 gpm-1746 psi,203 psi diff,70 ft/hr ROP.BGG 6 to 192 units.At 18:00 hrs we were between the Beluga 75 and 80.;Cont drilling 6 3/4"hole from 2662'to 3083'.Rot wob 4K,295 gpm-1930 psi,83 rpm-6200 ft/lbs on bott torque,150'/hr ROP.Up Wt=63k,Dn Wt=60k,Rot Wt=61k.Slide footage 42',rotate 379'.;Sliding wob 5K,290 gpm-1950 psi,250 psi diff,70 ft/hr ROP.BGG 6 to 200 units.At 00:00 hrs we were between the Beluga 92 and 93.Sweep pumped @ 3075,returned 50%excess cuttings.;Cont drilling 6 3/4"hole from 3083'to 3481'.Rot wob 5K, 300 gpm-1950 psi,83 rpm-6100 ft/lbs on bott torque,150'/hr ROP.Up Wt=63k,Dn Wt=60k,Rot Wt=61 k.Slide footage 17,rotate 397'.;Sliding wob 8K,295 gpm-1950 psi,250 psi diff,80 ft/hr ROP.BGG 16 to 180 units.At 06:00 hrs we were between the Beluga 110 and 115.;Hauled 72 bbls cuttings to KGF.443 bbls hauled to date. Hauled 288 bbls junk fluid to KGF.1259.5 bbls hauled to date. Hauled 0 bbls cement to KGF.47.5 bbls hauled to date. No down hole losses;Wellbore position:4.55'to plan.3'low,5'left.BHA has.5°/100 left hand walk,and.5°/100 build tendency. 110 1/14/2017 Circulate hi-vis nutplug sweep around at 317 gpm-1976 psi while working pipe,followed with 3 bottoms up.Obtain survey and SPR's.Flow check static.;Pull up hole on elevators from 3481'to 2635'.Mad passed slide interval from 2753'to 2735'.At 2635'we pulled 20 to 30K over(initial up wt 73K),worked 3 times on elevators but would not clean up.;MU topdrive and attempted to pump up through tight spot,still seing 20K over pull.SO and rotated at 60 rpm, backreaming up to 2612'.SO,dwn pump and rotation,pulled clean back up to 2612'.;Had to cont backreaming from 2612'up to 2425'.All through claystone formation.After backreaming each stand hole was good and clean during straight pull no pump no rotation.;At 2425'crew held BOP drill with participation from all personnel on location.Team then discussed drill,pointed out deficiencies and solutions including muster point head count,crew expectations.;Serviced rig and topdrive,blocks and crown.;TIH on elevators from 2425'to 3481'with no issues and no fill.MU topdrive and filled pipe,pumped a 20 bbl hi-vis nut plug sweep.With sweep outside drill string resumed drilling ahead.;Cont drilling 6 3/4"hole from 3481'to 3975'.Had 50%increase in cuttings at bottoms up,and 60%increase in cuttings with sweep to surface,sweep was back 300 strokes early.Rotating wob 5K,;298 gpm-1990 psi,85 rpm-7000 ft/lbs on bott torque,130 ft/hr ROP,sliding wob 3K,293 gpm-1841 psi,104 psi diff,72 ft/hr ROP.MW 9.1/vis 63,ECD's at 10.4 ppg,BGG 44 units.Cont rack-tally casing;Cont drilling 6 3/4"hole from 3975'to 4416.295 gpm-2020 psi,85 rpm-8000 ft/lbs on bott torque,130 ft/hr ROP,sliding wob 3K,293 gpm-1841 psi,104 psi diff, MW 9.1/vis 59,;Up Wt=80k,Dn=70k,Rot=70k.ECD=10.65 ppg EMW ave.BGG=40 units.;Directional drill 6 3/4"hole from 4416'to 4476'MD.295 gpm-2020 psi,85 rpm- 8000 ft/lbs on bott torque,130 ft/hr ROP, MW 9.1/vis 59,ECD 10.65 ppg;Pump 22 bbl Hi-Vis nut plug sweep surface to surface,followed by a bottoms up. 20%increase in cuttings load.SPR's.Line up to trip.;Flow check.Pull on elevators from 4476'to 4030'.30k over pull.Back ream,290 gpm,60 rpm,3 stands to 3841'.Pull out on elevators from 3841'to 2400'MD.Begin back reaming @ 2400'MD to 2200'.;Hauled 90 bbls cuttings to KGF.533 bbls hauled to date. Hauled 270 bbls junk fluid to KGF.1529.5 bbls hauled to date. Hauled 0 bbls cement to KGF.47.5 bbls hauled to date. No down hole losses;Wellbore position:3'distance to plan.2.3'high,2'left. 1/15/2017 Cont backreaming up hole from 2200'to 1925',262 gpm-1471 psi,55 rpm-5300 to 6300 ft/lbs torque.From 1925'we were able to pull on elevators up and into the surface casing shoe,stopping at 1430'.;Serviced rig,topdrive,blocks and crown.;TIH from 1430'to 4386'with no issues.Filled pipe at 2548',tagged up at 4386'.MU topdrive filled pipe,then washed/reamed down to 4476'with no indication of fill.Made connection and pumped sweep;With sweep outside drill string resumed drilling 6 3/4"production hole.Had 40%increase in cuttings with sweep to surface.Rotating wob 6K,286 gpm-1829 psi,85 rpm-8000 ft/lbs on bott torque,;130 ft/hr ROP.BGG 17 units.At 4663'we had 407 units gas and started seeing larger coal shards on shakers.Increased MW from 9.1 to 9.2 ppg/vis 55.Drilled from 4476'to 4972'and pumped sweep.;30%increase in cuttings.Tyonek#12 sand had a 1521 unit spike of gas.(4935'to 4960)Max gas on well.;Drilled from 4972'to 5351'.Up Wt=105k,Dn Wt=85k,Rot Wt=86k.Rotating wob 8K,286 gpm-1829 psi,85 rpm-Tq=8000 ft/lbs on,5500 ft/lbs off,130 ft/hr ROP.BGG 45 units.ECD 10.5 ppg;Drilled from 5351'to 5535'.Up Wt=105k,Dn Wt=85k,Rot Wt=86k.Wob 8K,286 gpm-1930 psi,85 rpm-Tq=8000 fUlbs on,5500 ft/lbs off,130 ft/hr ROP.BGG 45 units.ECD=10.55 ppg.;Pump 22 bbl Hi-Vis sweep surface to surface.295 gpm,75 rpm,20%increase in cuttings. One more BU strokes,shakers cleaned up.Obtain SPR's.Monitor well.Static.Begin pulling on elevators.;Short trip.Pull on elevators from 5535'to 4475'MD. Good hole conditions.Good hole fill.Service top drive.;Service rig.top drive,Draw works.;Hauled 45 bbls cuttings to KGF.578 bbls hauled to date. Hauled 315 bbls junk fluid to KGF.1844.5 bbls hauled to date. Hauled 0 bbls cement to KGF.47.5 bbls hauled to date. No down hole losses.;Wellbore position:Distance to plan 1.12',.5'low,1'left. 1/16/2017 TIH from 4475'to 5535'on elevators,with no issues,no fill. Pumped hi-vis nutplug sweep outside drill string and resumed drilling ahead.;Cont drilling 6 3/4" hole from 5535'to 6160',rot wob 7K,290 gpm-2176 psi,80 rpm-8600 ft/lbs on bott torque,58 to 130 ft/hr ROP,sliding wob 5 to 10K,295 gpm-1895 psi,120 psi diff.;lncreased MW from 9.2 to 9.3 ppg over 12 hrs,to help control flaking coal and gas spikes.At 5535'had a spike to 1039 units.At 5572'had a spike to 489 units and an increase in flow from 30%to 49%;PU and monitored well with pump off both times.No flow.Resumed drilling with no further issues.Pumped a hi-vis nutplug sweep at 5977'and had maybe 10%increase in cuttings at shakers.;Brought in and staged upright water tank for upcoming cement job. Changed shakers screens back to 170's due to blinding off 200's(formation sands)and running over during gas spikes/flow increase.;Cont drilling 6 3/4"hole from 6160'to 6345'.Up Wt=116k,Dn Wt=92k,Rot Wt=96k.Wob 8K,294 gpm-2050 psi,85 rpm-Tq=9000 ft/lbs on,6000 ft/lbs off,120 ft/hr ROP.BGG 25 units.;The slides were tedious,required rocking.Added one drum of NXS lube,and trickled in a sack of nutplug every 15 mins.both seemed to help.Adding 15 bph water,running shakers wet.;Cont drilling 6 3/4"hole from 6345'to 6596'.Up Wt=124k,Dn Wt=98k,Rot Wt=102k.Wob 8K,294 gpm-2050 psi,85 rpm- Tq=9000 ft/lbs on,6000 ft/lbs off,120 ft/hr ROP.BGG 25 units.;Back ream,MAD pass last slide.Pump 22 bbl Hi-Vis sweep.;Hauled 69 bbls cuttings to KGF. 647 bbls hauled to date. Hauled 414 bbls junk fluid to KGF.2259 bbls hauled to date. Hauled 0 bbls cement to KGF.47.5 bbls hauled to date. No down hole losses.:Wellbore position:Distance to plan=16.29'. 16.27'low..8'left.ahead on angle drop. 1/17/2017 Pumped hi-vis sweep around and until clean at shakers.297 gpm-1798 psi,60 rpm-7300 ft/lbs off bott torque.Shut dwn and flow check static.;Blew down topdrive,pulled up hole from 6596'to 5466'on elevators,no issues,up wt 130K.;Serviced rig and topdrive.;TIH on elevators from 5466'to 6501'and set down 10K(coal).PU,MU topdrive and filled pipe.Washed/reamed last two stands to bottom at 6596'.MU new stand and pumped hi-vis sweep out drill string.;Resumed drilling 6 3/4"production hole from 6596'to 6855'sliding as needed to maintain 2°/100'drop. MAD Pass all slides.Rotating parameters: ROP 130 fph,80 rpms/9500 ft-lbs,280 gpm/2200 psi,;WOB 6.5K,ECD 10.49. Sliding parameters:ROP 20-30 fph,280 gpm;1950 psi with 140 psi diff,WOB 5K. PUW 120K,SOW 100K,ROTW 102K. Gas spike of 178 units at 6720',and 270 units at 6781'.;Directional drilling 6%"production hole from 6855'to 7094'.Rotate footage=212',Slide footage 27'.Rotating parameters:ROP 130 fph,80 rpms/9500 ft-lbs,285 gpm/2150 psi,10k wob.;Up Wt=124k,Dn Wt=102k, Rot Wt=106k.Slide parameters:ROP 10-25, 280 gpm;1950 psi with 140 psi diff,wob 5K. T65 sand drilled©6872,428 units of gas.;Directional drilling 6%" production hole from 7094'to 7380'.Rotate footage=212',Slide footage 2T.Rotating parameters:ROP 130 fph,80 rpms/9500 ft-lbs,285 gpm/2150 psi,10k wob.;Up Wt=128k,Dn Wt=100k,Rot Wt=110k.Slide parameters:ROP 10-25, 280 gpm;1950 psi with 140 psi diff,wob 5K. T83 sand drilled @ 7130,107 units of gas.Pumped sweep @ 7100',10%excess returns.;Hauled 63 bbls cuttings to KGF.710 bbls hauled to date. Hauled 207 bbls junk fluid to KGF.2466 bbls hauled to date. Hauled 0 bbls cement to KGF.47.5 bbls hauled to date. No down hole losses.;Wellbore position:8'from plan,3.7'high,7'left.Slides have been very difficult,with weight stacking and motor stalls.We are now below one degree on bottom. • • 1/18/2017 Continue drilling ahead rotating from 7,380'to 7,588'. ROP 120 fph,80 rpms/10,000 ft-lbs,275 gpm/2200 psi. MW 9.3 ppg,ECD 10.49 ppg EMW.;Pump high viscosity sweep(25%excess)and circulate hole clean(total 3 annular volumes)at 275 gpm/1750 psi rotating at 50 rpms. Flow check.;Perform wiper trip to 6,531'PUW 140K,SOW 116K. Tight spots noted at 25-30K over at 7,466(coal);7,432'(coal);7409',7376',7349'—7330',6,947'.Slack off with no additional drag and;work tight spots clean. Tight at 6,924'30K over,attempt to wipe unable to,attempt to pump through continues to pull 30K over without breaking over. Ream from 6,960'to 6,910';250 gpm/1650 psi, 50 rpms 9,000 ft-lbs torque up to 14,000 ft-lbs of torque with no differential pressure. Continue to POOH to 6,531'with no issues.;Service rig,grease crown and blocks.;RIH from 6,531'to 7,528'with no issues. Wash last stand to bottom 270 gpm/2184psi. 578 units of wiper gas.;Continue drilling from 7,588'to 7714'. ROP 100-130fph,WOB 6K,280 gpm/2450 psi,MW 9.35 ppg ECD 10.43 ppg EMW.;Drill from 7714'to 8024'MD. ROP 100-130fph,WOB 6K,280 gpm/2450 psi on/2050 psi off,10,500 ft-lbs on/8500 ft-lbs off,80 RPM,MW 9.35 ppg ECD 10.38 ppg EMW.;Floor hand noticed off Driller side link tilt end was worn(beginning to egg out).Decided to change out on connection,also got SPR's.Good catch.;Drill from 8024'to 8060'MD. ROP 100-130fph,WOB 6K,280 gpm/2450 psi on/2050 psi off,10,500 ft-lbs on/8500 ft-lbs off,80 RPM,MW 9.35 ppg ECD 10.38 ppg EMW.;Function UPR's,LPR's,Annular preventer.;Drill from 8060'to 8200'MD:ROP 100-110fph,WOB 9K,280 gpm/2450 psi on/2080 psi off,10,800 ft- lbs on/8800 ft-lbs off,80 RPM,MW 9.35 ppg ECD 10.45 ppg EMW;Pump sweep surface to surface 10%excess cuttings seen.Weight up to 9.5 ppg.Mix 150 50 lb SXS.Circulate suction to suction to ensure even mud weights in entire system.;New SPR's with 9.5 ppg mud in and out.Monitor well.Static.Begin wiper trip to shoe.Pulled 5 stands on elevators.Pulled tight t 7896',30k over twice.Begin backreaming.50 rpm,270 gpm,2000 psi;Hauled 68 bbls cuttings to KGF.778 bbls hauled to date. Hauled 292 bbls junk fluid to KGF.2758 bbls hauled to date. Hauled 0 bbls cement to KGF.47.5 bbls hauled to date. No down hole losses.;Wellbore position:19.31'to plan.18.97'high,3.88'left. 1/19/2017 Continue with wiper trip POOH from 7,650'(PUW 160K)to 1368'. Work tights spots and wipe clean at 5058'-5031'(25K),5020'-4995'(25K),4191'(30K), 3745'(30K),and 3433'. Ream tight spots at;4060'(30K)with 260 gpm/1600Ipsi,50 rpms/6500 ft-lbs up to 10,500 ft-lbs and 50 psi differential. Ream tight spot at 3998'(30K)260 gpm/1600 psi,50 rpms/6500 ft-lbs torque up to 10,000 ft-lbs;and 50-100 psi differential. Slack off and wipe reamed spot to ensure clean. Observe intermittent 5-10K drag from 5031'to 3433'.;Service rig brakes and TD.;Slip and cut 180'of drilling line.;RIH from 1,368'to 3314'with no issues.;Trip in hole on elevators.Good hole conditions.3314'to 4541'.;Circulate bottoms up.Max gas 220 units.Shakers were loaded up on BU strokes,and then cleaned up.Blow down Top Drive.;TIH from 4541'to 5307'.Ledge in coal bed.Set down 3x's 15 to 20k.;Ream down from 5307'to 5468'.240 gpm,1700 pp,50 rpm,the hole unloaded.Quarter size pieces of coal,and sand.No signs of large shards indicating a destabilized coal bed.Just a lot of material.;Blow down top drive.TIH from 5468'to 6782'.One 10k flicker seen t 5766'.Set down 3x's 15 to 20k.Coal bed.(6782');Ream down from 6782'to 6843'.235 gpm, 50 rpm,1600 psi pp.torque remained stable around 10k ft/lbs.Took 4 to 8k wob to get past the coal.;Blow down top drive.TIH from 6843'to 7575'. Small coal indicated on log.Set down 3 x's 20k.;Ream to bottom.Shakers loaded up.Max wiper gas seen 1874.250 gpm,50 rpm.Waves of cuttings comprised of 50% coal,1/8"to 1/2",and the remaining cuttings sand,sandstone.No fill on bottom.;Pump sweep surface to surface.50%increase seen at shakers.270 gpm,50 rpm,2050 psi pump pressure,10,500k torque.Isolate pit#4,bring viscosity up to 80.Line up on pit#4,circulate 9.6 ppg;80 vis mud down hole. After full circulation had 76 in and 66 vis out.;Hauled 9 bbls cuttings to KGF.787 bbls hauled to date. Hauled 81 bbls junk fluid to KGF.2839 bbls hauled to date. Hauled 0 bbls cement to KGF.47.5 bbls hauled to date. No down hole losses. 1/20/2017 Continue circulating high viscosity mud,76 second funnel viscosity. Flow check.;POOH with drilling assembly from 8200'(PUW 175K). Tight at 8115'(30K), unable to wipe clean. Ream from 8141'to 8082'270 gpm/2000 pis,50 rpms/9000 ft-lbs of torque. Did not notice any;additional torque or differential pressure through tight spot. Slack off and wipe through spot with no rotary/pumps-clean. Continue to POOH to 4665'.;After filling the trip tank observed trip tank pump not pumping. Check funnel vis of fluid(74 sec). Empty half the fluid from trip tank and blend with thinner fluid(FV 58).;Continue to POOH from 4665'to 1312'just inside surface shoe. Tight spot noted at 4,191'with 20K over,work x1 and wipe clean.;Flow check well. Rig service. Adjust draw works brakes.;Continue to POOH to 497'.;Rack back flex collars.PJSM.Remove nuclear sources.Download data from MWD tools.Lay down all MWD collars,and 5 stabilizers.All tools safely retrieved from wellbore.Bit grade 1-3-LT-G-X-I-WT-TD.;Clean and clear rig floor.Prepare for logging operations.Loggers arrive V with Fishing kit,and all needed tools.Spot truck on off Driller side.;PJSM with Halliburton E-Line crew and rig crew.Rig up logging equipment,stage tools on Jt/ cat walk.;Complete rig up.Sheaves safely hung.Line wiper installed.;1 st Run:Releasable cable head/Multi conductor eline jars/Gamma ray&telemetry/ Sequential formation tester.Run in hole to 3500'.Test tools.Good.Run in hole to 7123 hit bridge.Attempt to;get past obstruction.15 mins.Pull out last time with 10k over pull.Max pull.Begin data collection in T65 sand and up.T83 and below not tested.;Hauled 27 bbls cuttings to KGF.814 bbls hauled to date. Hauled 63 bbls junk fluid to KGF.2902 bbls hauled to date. Hauled 0 bbls cement to KGF.47.5 bbls hauled to date. No down hole losses. 1/21/2017 Continue with SFT logging on E-line while monitoring well on trip tank. Work on PM's around the rig. Clean and organize lube room,tool room. Change oils in Agitators.;L/D SFT tool string. Pick up rotary sidewall coring tool;RIH with rotary sidewall coring tool to 6200',set down at 5504'pick up with 300lbs over pull,work through. Attempt to correlate to gamma log from drilling,E-line gamma tool not working.;POOH and change out Gamma tool.;Run in hole with E- line,sidewall core tools,new gamma ray.Hole was sticky around 5450'.Drop down to first core depth,correlate.Adjust 2 feet.Begin coring.;Collecting sidewall cores.1st sample 6116'MD,last depth 3999.45'.13 cores retrieved.Taking longer to break off than it is to actually cut the core.Getting good recovery.Cores#4&5 were short;SIMOPS:Rig crew continued to clean out the snow in the spill containment areas,clean and organize rig for rig move,PM's on wire rope,floor hands assist motorman with motor and equipment checks.;Continue SWC operations.Halliburton crew.Cored from 3918'10 3699'MD. Since midnight cored 7 stations.Missed 3.Tool unable to keep core after drilling. Trip for back up tool.;SIMOPS:Crew prepared tools for clean out run,BOPE test,casing check list.Snow removal on going.;PJSM.Lay down SWC tool#1,pick up SWC#2.CoMan verified new bit and catcher were in place.Cores viewed.Variable success.Some cores were unconsolidated,some were well cemented and intact.;TIH with new tool.Continue SWC operations.Halliburton crew.Cored from 3561'to 3374'MD.5 cores retrieved.Had some trouble with a jammed core(Station#23,3524'.),but were able to free up.;The well was taking.33 BPH seepage losses while monitoring on trip tank.9.6 ppg mud.;Hauled 8 bbls cuttings to KGF.822 bbls total. Hauled 32 bbls junk fluid to KGF.2934 bbls total. Hauled 0 bbls cement to KGF.47.5 bbls total. Daily losses 7.5 bbls. 7.5 bbls total. • • 1/22/2017 Continue collecting sidewall core samples with Halliburton E-Line. Collect samples from 3374'to 1946'. 23 additional core samples collected,2 samples missed.;Continue collecting sidewall core samples up to 1,450'. 10 additional cores collected for a total of 55 cores with 5 missed samples. POOH with side wall coring tool.;UD coring tool. Pick up wave sonic and XRMI tool. RIH from surface to 5800'.;Electric line logging continued.Wave Sonic Imaging tool.RIH from 5800'to 6457".Coal bed ledge. Work down to 6580',past first coal and below two more WL stopped.P/U.Tight.Work back out using;jars,and maximum pull.Began making a foot at a time after no progress was observed.Pulled out of the coal beds.Free and clear.Decide to log from this depth.6450'. Logged to 1379'.Shoe.;Decide to log from this depth,after consultation with Geologist and Engineer. 6450'.Logged to 1379'.Shoe.No hole problems during this pass.;PJSM.Safely retrieved all tools from the hole.PJSM,rigged down sheaves and wire line.Load tools in Halliburton tool trailer.;Drain stack and remove wear bushing from BOP stack.Wash stack.;Pick up test joint,make up test plug,set plug, fill BOP stack with water,flood choke line to choke house. Shell test BOPE.AOGCC Jim Regg waived witness of test.;Test BOPE at 250 psi low/3500 psi high,Annular tested 250 psi 2500 psi Held low pressure tests 5 mins,high pressure tests 10 mins.Test#1,UPR,CM#1,3,4,5,7,Mezzanine kill,dart valve,hyd bop.;Test#2 UPR,CM#2,4,5,6,8,Kill HCR,TIW,Misread on test pump,stop test change out gauge,test good.Well monitored on OA,wellbore taking half barrel per hour.;Test#3 UPR,inside kill,TIW valve,CM #7,9,11,13.Test#4 UPR,Inside kill,choke HCR,TIW.Test#5 UPR,TIW,Inside kill,lnside choke.Test#6 Annular,dart valve,inside kill,inside choke.;Test#7 LPR dart valve.Crew change.Testing continued.;Hauled 0 bbls cuttings to KGF.822 bbls total. Hauled 0 bbls junk fluid to KGF.2934 bbls total. Hauled 0 bbls cement to KGF.47.5 bbls total. Daily losses 10 bbls. 17.5 bbls total. 1/23/2017 Continue with test#7 LPR,dart valve. 250/3500 psi 5/10 minute good. Perform accumulator drawdown test. Observe pressure bleed on accumulator after full recharge. Investigate and observe annular;actuator valve leaking.;Change out annular accumulator actuator valve.;Perform accumulator drawdown test starting pressure 3000 psi,final pressure 1400 psi first 200 psi recharge=22 seconds final recharge 209 seconds. (4)N2 bottles with 2700 psi average.;R/U lines to test IBOP,attempt to pump water through lines. No water. Steam lines and ensure clear. Break apart test manifold. Observe one of the valve handles on the test manifold positioned;on backwards,indicating a closed valve when its in the open position. Pump test water through lines,not pumping a steady stream appears aerated. Tighten connections on test pump lines. Change out;blow down valve on test pump.;Continue testing BOPE. Test#8 blind rams,hydraulic IBOP,chokes 7,10,12. Fail on high test slow bleed. Bleed air and continues to fail on high test. Trouble shoot leaking component. Test;without hydraulic IBOP fail on high. Test only blind rams fail on high,can not observe any fluid leaking past blinds. Pick up test joint to check test plug. Pull test plug and seal looks good.;Re-install test plug. Cool off testing water(over 80°).;Continue to test BOPE's test 9-blind rams pass. Test 10 Hydraulic IBOP,chokes 7,10,12-pass. Test 11 manual IBOP-pass. Test 12 electric choke-pass,test 13 manual choke pass.;R/D testing equipment. Blow down lines.;Pull test plug. Set wear bushing.;PJSM.Make up stabilizer,bit sub,bit.;Trip in the hole to 1379.Shoe depth.;Circulate bottoms up.MW out 9.6+80 vis, MW in 9.6, 61 vis. 230 gpm,440 psi,50 rpm.Blow down top drive.;Trip in the hole from 1379 to 3742'.;Circulate bottoms up.230 gpm,840 psi,50 rpm,175 max gas.9.8 ppg 102 vis out/9.6 ppg 61 vis in.Blow down top drive.;Trip in the hole from 3742'to 4270'.Good hole conditions.;Trip in the hole from 4270'to 5983'.Good hole conditions.;Circulate bottoms up.230 gpm,1100 psi,75 rpm,max gas 570 units.MW out 9.7,102 vis,MW in 9.6,61 vis. Blow down top drive.;Trip in on elevators from 5983'to 6520'.Area where E-line was hung up.35k dn.Ream 6520 to 6673.TIH from 6673 to 7171.Ream 7171 to 7229'.TIH from 7229 to 7670.Ream fr 7670 to 7910.Tag fill 7850; 1/24/2017 Continue reaming from 7910'to 7969'attempt to trip in hole on elevators,consistent 5-12K drag. Pick up with 30K over pull. Continue to ream to 8200'at 280 gpm/1750 psi,60 rpms and erratic;torque from 9500 ft-lbs to 12,000 ft-lbs.;Pump high viscosity sweep(10%increase)and circulate hole clean 287 gpm/1353 psi with 60 rpms/9200 ft-lbs of torque. Sweep came back 20 bbls late. Circulate total of two hole volumes.Flow check.;Begin POOH for wiper trip. Observe pipe swabbing. Pump out of the hole at 140 gpm/500 psi to 6975',checking every 5 stands but continues to swab to 6977'. Tight spots requiring working pipe noted;at 8142'(30K over),and 7501'(25K). Tight at 7129'with 30K overpull and 25K down while attempting to work. Ream stand at 210 gpm/815 psi 77rpms and 9-12Kft-lbs of torque.;Continue POOH on elevators from 6977'to 6170'with no issues.;Run in hole from 6170'to 8200'washing last stand to bottom. One 10K bobble at 6995 wipe clean. Tight at 7840 with 20K down,ream through pick up and wiped clean.;Pump high vis sweep and circulate hole clean(10% increase),pump Condet and nut plug sweep to clean off bit and prevent swabbing. Circulate hole clean 220 gpm/875 psi.;POOH with cleanout assembly from 8200'to 7,908'. Tight spot noted at 8160'with 25K over,attempt to wipe clean.;Ream clean 205 gpm/820 psi,80 rpms/8800 ft-lbs. No additional torque observed wipe through to ensure clean.;Pump dry job and blow down top drive.;POOH while laying down drill pipe from 7,908'to 4,826'(Observe tight spot 7,227'and 6,914',wipe through with no issues).;POOH while laying down drill pipe from 4,826'to 383'.;RIH remaining 16 stands of DP in derrick from 383'to 1,350'.;POOH while laying down drill pipe from 1,350'to 1,000'.;Hauled 18 bbls cuttings to KGF,840 bbls Cum. Hauled 72 bbls junk fluid to KGF,3,006 bbls Cum. Hauled 0 bbls cement to KGF,47.5 bbls Cum Daily losses 10 bbls,37.5 bbls Cum 1/25/2017 Continue to UD drill pipe from 1000'to 756'.;Service rig.;Continue to UD drill pipe to 383'. UD BHA. Bit had a plugged nozzle,and was in gauge.;Clean and clear rig floor. Pull wear bushing and dummy run hanger. R/U casing bails and fill uo lines. Clear snow from casing.;M/U and Bakerlok shoe track. Check floats-good. RIH with 4-1/2"DWC/C casing to 1350'. Filling every joint on the fly,topping off every 10 joints.;Circulate and condition mud. Circulate annular volume,blow down top drive.;Continue to RIH with 4-1/2"DWC/C from 1350'to 2300'.;ContiniIP to RIH with 4-112"[MCC tom 2300'to 4,900';Circulate and condition mud. Circulate annular volume,blow down top drive.;Continue to RIH with 4-1/2"DWC/C from 4,900'and land on hanger©8,185'.;Circulate and v condition for cement job.250 gpm,1150 psi.(2044 units gas)R/D casing power tongs and R/U cementers.;R/D circulating swedge&R/U cement head and \-\ �' hard lines.;Circulate and condition for cement job.270 gpm,1500 psi.;PJSM on cementing.SLB loaded lines with 3 bbls water and checked for leaks.SLB pressure tested lines at 1000 low 4500 high,good tests.Rig pumped 17 bbls of 10.5 ppg MudPush II at 3.3 bpm,600 psi.;Shut down and SLB drop bottom plug.Pumping 13.5 ppg lead cement with 5.5 bpm @ report time.;Hauled 12 bbls cuttings to KGF,852 bbls Cum. Hauled 48 bbls junk fluid to KGF,3,054 bbls Cum. Hauled 0 bbls cement to KGF,47.5 bbls Cum Daily losses 6.1 bbls,43.6 bbls Cum M • GY51 1/26/2017 Continue pumping lead cement:pumped 181 bbls(598 sx)13.5 ppg Class G lead cement at 5.5 bpm,200 psi. At 130bbis away rate on computer not reading correctly. It reads up to 9.9 bpm while pumping;5.7 bpm,suspect a proxy switch is working incorrectly. Start taking hand notes and calculating cement pumped based on mix water.;Swap to tail cement pump 36.4 bbls(155 sx)15.3 ppg Class G tail cement at 5.5 bpm. SLB dropped top plug then displaced with 10 bbls H2O and 114 bbls 8.6 ppg 6%KCI at 6.2 bpm,2800 psi.;At 105 bbls into displacement slow pumps down to idle due to lack of 6%KCL from mud trucks. Bring pumps back up to 3.3 bpm,observe increase in pressure but no increase in flow. Possibly packed off.;Slowed to 2.4 bpm,3200 psi with 14 bbls to go.Displaced 124 bbls total 123.7 bbls calculated+Y shoe track. Did not bump the plug.Floats held and annulus static.;SLB computer still not reading correctly. One supervisor on pump truck counting tubs,one on rig floor during displacement.;No mud push or cement to surface.Lost 11.5 bbls mud during cement job.Cemnet was added to both lead and tail cement at 3/4 ppb.Mix water temp at 80 deg.Pumped 20%excess on both lead and tail.;Was not able to reciprocate pipe.CIP at 7:21 hrs,1-26-17.;Rig down SLB cementers. Back out landing joint and wash up stack.;Make up casing packoff to landing joint. Set pack off,RILDS.;Wait on cement to test casing. Rig down casing bails and elevators. prep pipe handling equipment for inspection. Flush mud pumps. Start hauling off fluid. Clean and clear rig floor.;Slip and cut 125'of drilling line.;Continue to wait on cement. Clean mud pits. Inspect and change oil in top drive. Remove saver sub for inspection. Load out mud products and excess casing.R/D service shacks and move off location.;Test casing 3500 psi and chart for 30 min(good)pump 1.54 bbls&return 1.42 bbls.;lnstall BPV.N/D BOPE.Remove flow line,bell nipple,katch kan and HCR kill and hydraulic lines.;N/U dry tree. Test void 500 psi 5 min,5000 psi 15 min(good).Test tree 500 psi 5 min,5000 psi 10 min(good).;Rig down and prep for move.R/D top drive&remove from rig floor.Clean pits.R/D bridle lines.UD gas buster.Move off location misc tools&equipment.;lnstall shipping beams.Remove level winds for tuggers.Prep cat walk for rig move.;Hauled 68 bbls cuttings to KGF,920 bbls Cum. Hauled 473 bbls junk fluid to KGF,3,527 bbls Cum. Hauled 0 bbls cement to KGF,47.5 bbls Cum Daily losses 11.5 bbls,55.1 bbls Cum 1/27/2017 Prep rig floor to lower derrick. Remove turnbuckles,rig down floor heater. Tie up tong/escape lines. Remove weight indicators. Unspool drill line. Clear rig floor of miscellaneous items.;Rig down brake linkage. Shut down boilers and blow down steam lines. Finish cleaning pits. Total safety on location rigging down gas detection equipment.;Spot crane and rig down wind walls from rig floor. Rig down power cords. Shut down water system and blow down/rig down Iines.;Lay derrick over. Remove wind walls from pit modules. Rig down heaters from pit module. Lay over catwalk. *RIG ON MOVE RATE;Cont.to prep rig for move.Cont.to blow down lines.Prep misc tools and equipment for back load.;Peak start moving misc tools and equipment to next location.Rig crew start laying felt,herculiner and mat boards on next location. `RIG RELEASED 06:00 NEXT WELL KBU 32-06 1111 1111 11 Hilcorp Energy Company Composite Report Well Name: NINU Kalotsa 2 Field: Ninilchik County/State: ,Alaska (LAT/LONG): svation(RKB): API#: 50-133-20659-00 Spud Date: Job Name: 1612640C Kalotsa 2 Completion Contractor AFE#: 1612640C AFE$: $312,500 xamioutii ./.. ittlt . ........ .................t.o..,..f........:,........�I.........::k.............................................:... .t+:................................ .t... �::::.......... it.;:.:.: ...................................... MM.:::tBo :..i...: 2/6/2017 SLB had Alternator problems on logger at Kasilof.Wait on SLB.,PTW and JSA.Spot equipment and rig up lubricator.PT to 250 psi low and 3500 psi high.,RIH w/RST/SCMT,tie into LWD loq 19-Jan-17,and tag bottom at 8040'. Log to surface at 30'per min. Looks like good cement to+/-3300'and ratty to+/- 2600'.,Rig down lubricator and turn well over to field. 2/22/2017 PTW and JSA.Hook Field triplex up to IA.Chart with crystal gauges. Pressure test IA to 2550 psi for 30 min and pressure had bled down to 2513 psi.Good•,�P1 test. M1 2/25/2017 Got approval to just do a coil tubing function and shell test on BOP instead of a full blown BOP test from AOGCC.PTW,JSA and SIMOPS.Move And spot equipment from Kalotsa#1. Rig up coil tubing and BOPS.Pressure lines to 4500 psi and function test and shell test to 250 psi low and 4500 psi.high.,RIH with 1-3/4"coil tubing and 2-1/4 jet nozzle and come on line with N2 at 5000'going in hole.Started with 1500 scf and worked way up to 2000 scf.Tagged TOC vflat 8086'ctm KB.Set there for about 30 min and started coming out of hole.Got N2 back to surface after unloading 126 bbls total.Pressured well up to 1950 psi .250 psi is for mike with construction.,Rig down coil off well and will truck coil tubing out tomorrow morning.Turn well back over to field.Used a total of 1700 D:31 gals of N2.We have approx.2700 gals of N2 left. 3/2/2017 PTW and JSA and SIMOPS.Spot equipment and rig up lubricator. PT to 250 psi low and 2000 psi high.,RIH with Press/Temp tool and tag at 8052 correlated with CBL log.Found fluid level at 7764'.POOH.Send log to town.,RIH w/2-7/8"x19'HC Razor,6 spf,60 deg phase and tie into CBL log dated 4-Feb17.Run correlation CCL log and send to town.Get ok to perf from 4994'to 5013'.Spotted and fired shot with 1650 psi,and after 5 min pressure 1650 psi. POOH..All shots fired,gun was dry,RIH w/2-7/8"x20'HC Razor,6 spf,60 deg phase and tie into CBL log dated 4-Feb17.Run correlation CCL log and send to town.Get ok to perf from 4954'to 4974'.Spotted and fired shot with 1475 psi,and after 5 min pressure 1575 psi. POOH..All shots fired,gun was dry.We got stuck in the perfs at 5000'after running correlation log. Drop back down and was stuck.,Bled tubing to 1475 psi and worked tools free.Then we spotted shot and fired gun.POOH all shots fired and gun was dry.,RIH w/2-7/8"x4',8'spacer and 2-7/8"x5'HC Razor,6 spf,60 deg phase and tie into CBL log dated 4-Feb17. Run R correlation CCL log and send to town.Get ok to pert from 4937'to 4941'and 4949'to 4954'.Spotted and fired shot with 1800 psi,and after 5 min pressure 1825 psi. POOH.All shots fired,gun was dry.,Rig down lubricator and turn well over to field. 3/3/2017 PTW and JSA.PT to 250 psi low and 2000 psi high.,RIH w/GpT tool to 1000'.Town called and said to POOH and rig Halliburton down,Rig down Halliburton Eline and secure well,Wait on Pollard Eline..PTW and JSA.Rig up lubricator and PT to 250 psi low and 2000 psi high.,RIH w/2-7/8"x19'HC Razor,6 spf,60 deg phase and tie into OHL.Run correlation log and send to town.Get ok to pelf from 4994'to 5013'.Spotted and fired shot with 1810 psi,and after 5 min pressure 1810 psi. POOH. .All shots fired,gun was dry,RIH w/2-7/8"x20'HC Razor,6 spf,60 deg phase and tie into OHL. Run correlation log and send to town.Get ok to pert from 4954'to 4974'.Spotted and fired shot with 1810 psi,and after 5 min pressure 1810 psi. POOH..All shots fired,gun was dry.,RIH w/2-7/8"x4',8'spacer and 2-7/8"x5'HC Razor,6 spf,60 deg phase and tie into OHL.Run correlation log and send to town had to adjust 1.5'up.Get ok to pert from 4937'to 4941'and 4949'to 4954'.Spotted and fired shot with 1800 psi,and after 5 min pressure 1825 psi. POOH. .All shots fired,gun was dry,Rig down lubricator and turn well over to field. • S Hilcorp Alaska, LLC Ninilchik Unit Kalotsa Kalotsa 2 50-133-20659-00-00 Sperry Drilling Definitive Survey Report 27 January, 2017 HALLIBURTON Sperry Drilling • • Halliburton Definitive Survey Report Company: Hilcorp Alaska,LLC Local Co-ordinate Reference: Well Kalotsa 2 Project: Ninilchik Unit ND Reference: Kalotsa 2 wp04 @ 144.50usft Site: Kalotsa MD Reference: Kalotsa 2 wp04 @ 144.50usft Well: Kalotsa 2 North Reference: True Wellbore: Kalotsa 2 Survey Calculation Method: Minimum Curvature Design: Kalotsa 2 Database: Sperry EDM-NORTH US+CANADA Project Ninilchik Unit Map System: US State Plane 1927(Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927(NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Using geodetic scale factor Well Kalotsa 2 Well Position +N/-S 0.00 usft Northing: 2,233,504.67 usft Latitude: 60°6'15.165 N +E/-W 0.00 usft Easting: 209,850.75 usft Longitude: 151°35'24.386 W Position Uncertainty 0.00 usft Wellhead Elevation: 0.00 usft Ground Level: 126.50 usft Wellbore Kalotsa 2 Magnetics Model Name Sample Date Declination Dip Angle Field Strength (°) (°) (nT) 13GGM2016 1/6/2017 15.79 73.12 55,197 Design Kalotsa 2 Audit Notes: I Version: 1.0 Phase: ACTUAL Tie On Depth: 18.00 Vertical Section: Depth From(TVD) +N/-S +E/-W Direction (usft) (usft) (usft) (°) 18.00 0.00 0.00 337.29 Survey Program Date 1/27/2017 From To (usft) (usft) Survey(Wellbore) Tool Name Description Survey Date 296.67 1,347.87 MWD+SC+sag(1)(Kalotsa 2) MWD+SC+sag Fixed:v2:standard dec&axial correction+sag 12/30/2016 1,384.98 8,155.52 MWD+SC+sag(2)(Kalotsa 2) MWD+SC+sag Fixed:v2:standard dec&axial correction+sag 01/13/2017 Survey Map Map Vertical MD Inc Azi ND TVDSS +N/-S +E/-W Northing Easting DLS Section (usft) (°) (°) (usft) (usft) (usft) (usft) (ft) (ft) (°/100') (ft) Survey Tool Name 18.00 0.0D 0.00 18.00 -126.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 UNDEFINED 296.67 0.34 350.29 296.67 152.17 0.81 -0.14 2,233,505.49 209,850.63 0.12 0.81 MWD+SC+sag(1) 350.98 0.30 2.63 350.98 206.48 1.12 -0.16 2,233,505.79 209,850.61 0.15 1.09 MWD+SC+sag(1) 416.72 0.31 1.88 416.72 272.22 1.47 -0.15 2,233,506.14 209,850.63 0.02 1.41 MWD+SC+sag(1) 447.46 0.40 342.25 447.46 302.96 1.65 -0.18 2,233,506.32 209,850.61 0.49 1.59 MWD+SC+sag(1) 509.57 0.76 31.27 509.56 365.06 2.21 -0.03 2,233,506.88 209,850.77 0.94 2.05 MWD+SC+sag(1) 571.04 0.25 29.29 571.03 426.53 2.67 0.25 2,233,507.34 209,851.06 0.83 2.37 MWD+SC+sag(1) 632.48 0.47 21.91 632.47 487.97 3.03 0.41 2,233,507.68 209,851.23 0.37 2.63 MWD+SC+sag(1) 694.88 0.31 36.51 694.87 550.37 3.40 0.60 2,233,508.05 209,851.43 0.30 2.90 MWD+SC+sag(1) 757.59 0.31 50.34 757.58 613.08 3.64 0.84 2,233,508.29 209,851.67 0.12 3.04 MWD+SC+sag(1) 818.79 0.46 31.14 818.78 674.28 3.96 1.09 2,233,508.60 209,851.93 0.32 3.23 MWD+SC+sag(1) 880.17 0.19 66.82 880.15 735.65 4.21 1.31 2,233,508.85 209,852.16 0.53 3.38 MWD+SC+sag(1) 945.38 0.18 14.97 945.36 800.86 4.35 1.44 2,233,508.99 209,852.29 0.25 3.46 MWD+SC+sag(1) 1/27/2017 2:00:44PM Page 2 COMPASS 5000.1 Build 81 • Halliburton • Definitive Survey Report Company: Hilcorp Alaska,LLC Local Co-ordinate Reference: Well Kalotsa 2 Project: Ninilchik Unit TVD Reference: Kalotsa 2 wp04 @ 144.50usft Site: Kalotsa MD Reference: Kalotsa 2 wp04 @ 144.50usft Well: Kalotsa 2 North Reference: True Wellbore: Kalotsa 2 Survey Calculation Method: Minimum Curvature Design: Kalotsa 2 Database: Sperry EDM-NORTH US+CANADA Survey Map Map Vertical MD Inc Azi TVD TVDSS +N/-S +EI-W Northing Easting DLS Section (usft) (°) (°) (usft) (usft) (usft) (usft) (ft) (ft) (°/100') (ft) Survey Tool Name 1,008.21 0.46 354.86 1,008.19 863.69 4.70 1.44 2,233,509.33 209,852.30 0.47 3.78 MWD+SC+sag(1) 1,070.15 0.52 352.56 1,070.13 925.63 5.22 1.38 2,233,509.86 209,852.25 0.10 4.29 MWD+SC+sag(1) 1,132.69 0.46 355.19 1,132.67 988.17 5.76 1.32 2,233,510.39 209,852.21 0.10 4.80 MWD+SC+sag(1) 1,195.57 0.43 36.01 1,195.55 1,051.05 6.20 1.44 2,233,510.83 209,852.34 0.50 5.16 MWD+SC+sag(1) 1,256.79 0.50 45.00 1,256.76 1,112.26 6.57 1.76 2,233,511.20 209,852.67 0.16 5.38 MWD+SC+sag(1) 1,319.33 0.52 49.32 1,319.30 1,174.80 6.95 2.17 2,233,511.57 209,853.09 0.07 5.57 MWD+SC+sag(1) 1,347.87 0.37 56.75 1,347.84 1,203.34 7.09 2.35 2,233,511.70 209,853.26 0.56 5.63 MWD+SC+sag(1) 1,384.98 0.26 54.60 1,384.95 1,240.45 7.20 2.52 2,233,511.81 209,853.44 0.30 5.67 MWD+SC+sag(2) 1,450.26 0.45 103.86 1,450.23 1,305.73 7.22 2.89 2,233,511.82 209,853.81 0.52 5.55 MWD+SC+sag(2) 1,512.89 0.43 114.04 1,512.86 1,368.36 7.07 3.34 2,233,511.66 209,854.26 0.13 5.23 MWD+SC+sag(2) 1,574.60 0.62 107.54 1,574.57 1,430.07 6.88 3.87 2,233,511.45 209,854.78 0.32 4.85 MWD+SC+sag(2) 1,637.82 1.47 2.42 1,637.78 1,493.28 7.58 4.23 2,233,512.15 209,855.16 2.75 5.36 MWD+SC+sag(2) 1,699.90 3.05 342.62 1,699.61 1,555.31 9.95 3.77 2,233,514.53 209,854.76 2.80 7.73 MWD+SC+sag(2) 1,761.95 5.32 339.30 1,761.69 1,617.19 14.22 2.26 2,233,518.83 209,853.35 3.68 12.25 MWD+SC+sag(2) 1,824.56 7.46 334.92 1,823.91 1,679.41 20.62 -0.49 2,233,525.29 209,850.75 3.50 19.21 MWD+SC+sag(2) 1,887.24 9.57 335.87 1,885.89 1,741.39 29.06 -4.34 2,233,533.83 209,847.10 3.37 28.48 MWD+SC+sag(2) 1,949.75 11.29 336.43 1,947.37 1,802.87 39.41 -8.92 2,233,544.28 209,842.78 2.76 39.80 MWD+SC+sag(2) 2,012.75 12.85 335.22 2,008.97 1,864.47 51.42 -14.32 2,233,556.42 209,837.67 2.51 52.97 MWD+SC+sag(2) 2,073.29 14.54 332.56 2,067.79 1,923.29 64.28 -20.64 2,233,569.43 209,831.66 2.98 67.27 MWD+SC+sag(2) 2,135.05 16.35 333.12 2,127.32 1,982.82 78.92 -28.15 2,233,584.24 209,824.51 2.94 83.67 MWD+SC+sag(2) 2,196.51 17.52 333.61 2,186.11 2,041.61 94.92 -36.17 2,233,600.43 209,816.87 1.92 101.53 MWD+SC+sag(2) 2,258.22 18.66 334.18 2,244.77 2,100.27 112.13 -44.60 2,233,617.84 209,808.86 1.87 120.65 MWD+SC+sag(2) 2,319.66 20.19 335.37 2,302.71 2,158.21 130.62 -53.30 2,233,636.53 209,800.61 2.57 141.07 MWD+SC+sag(2) 2,381.63 21.80 335.49 2,360.57 2,216.07 150.81 -62.53 2,233,656.94 209,791.86 2.60 163.26 MWD+SC+sag(2) 2,442.32 24.23 337.00 2,416.42 2,271.92 172.53 -72.07 2,233,678.88 209,782.85 4.12 186.98 MWD+SC+sag(2) 2,506.32 24.90 337.23 2,474.63 2,330.13 197.04 -82.42 2,233,703.64 209,773.09 1.06 213.58 MWD+SC+sag(2) 2,567.94 25.54 336.95 2,530.37 2,385.87 221.23 -92.64 2,233,728.06 209,763.46 1.06 239.84 MWD+SC+sag(2) 2,630.83 24.32 337.34 2,587.40 2,442.90 245.65 -102.94 2,233,752.73 209,753.75 1.96 266.35 MWD+SC+sag(2) 2,692.74 24.73 336.59 2,643.73 2,499.23 269.30 -112.99 2,233,776.61 209,744.27 0.83 292.04 MWD+SC+sag(2) 2,754.50 22.80 336.44 2,700.25 2,555.75 292.13 -122.91 2,233,799.67 209,734.90 3.13 316.93 MWD+SC+sag(2) 2,818.81 22.84 335.52 2,759.52 2,615.02 314.91 -133.06 2,233,822.69 209,725.30 0.56 341.86 MWD+SC+sag(2) 2,880.41 23.08 335.14 2,816.24 2,671.74 336.74 -143.09 2,233,844.76 209,715.80 0.46 365.88 MWD+SC+sag(2) 2,942.28 23.25 335.00 2,873.13 2,728.63 358.81 -153.35 2,233,867.07 209,706.07 0.29 390.20 MWD+SC+sag(2) 3,003.99 22.35 336.99 2,930.01 2,785.51 380.65 -163.09 2,233,889.13 209,696.87 1.92 414.10 MWD+SC+sag(2) 3,065.69 22.25 336.87 2,987.10 2,842.60 402.19 -172.26 2,233,910.89 209,688.21 0.18 437.51 MWD+SC+sag(2) 3,128.35 22.60 336.34 3,045.02 2,900.52 424.13 -181.75 2,233,933.05 209,679.25 0.65 461.42 MWD+SC+sag(2) 3,189.44 22.71 335.77 3,101.40 2,956.90 445.64 -191.30 2,233,954.78 209,670.22 0.40 484.94 MWD+SC+sag(2) 3,252.34 22.73 334.79 3,159.42 3,014.92 467.70 -201.46 2,233,977.08 209,660.60 0.60 509.22 MWD+SC+sag(2) 3,314.19 23.16 338.63 3,216.38 3,071.88 489.84 -210.98 2,233,999.44 209,651.61 2.52 533.32 MWD+SC+sag(2) 3,376.37 23.39 338.44 3,273.50 3,129.00 512.71 -219.97 2,234,022.52 209,643.17 0.39 557.88 MWD+SC+sag(2) 1/27/2017 2:00:44PM Page 3 COMPASS 5000.1 Build 81 • • Halliburton Definitive Survey Report Company: Hilcorp Alaska,LLC Local Co-ordinate Reference: Well Kalotsa 2 Project: Ninilchik Unit TVD Reference: Kalotsa 2 wp04 @ 144.50usft Site: Kalotsa MD Reference: Kalotsa 2 wp04 @ 144.50usft Well: Kalotsa 2 North Reference: True Wellbore: Kalotsa 2 Survey Calculation Method: Minimum Curvature Design: Kalotsa 2 Database: Sperry EDM-NORTH US+CANADA Survey Map Map Vertical MD Inc Azi TVD TVDSS +N/-S +E/-W Northing Easting DLS Section (usft) (°) (°) (usft) (usft) (usft) (usft) (ft) (ft) (°/100') (ft) Survey Tool Name 3,437.54 23.75 338.29 3,329.56 3,185.06 535.44 -228.99 2,234,045.47 209,634.70 0.60 582.34 MWD+SC+sag(2) 3,500.95 23.98 337.88 3,387.55 3,243.05 559.24 -238.57 2,234,069.49 209,625.70 0.45 607.99 MWD+SC+sag(2) 3,564.52 24.45 337.51 3,445.53 3,301.03 583.37 -246.46 2,234,093.84 209,616.39 0.78 634.06 MWD+SC+sag(2) 3,627.13 24.88 337.18 3,502.43 3,357.93 607.48 -258.53 2,234,118.19 209,606.91 0.72 660.19 MWD+SC+sag(2) 3,689.22 25.33 336.92 3,558.65 3,414.15 631.74 -268.80 2,234,142.69 209,597.22 0.75 686.53 MWD+SC+sag(2) 3,752.32 24.81 338.34 3,615.81 3,471.31 656.46 -278.98 2,234,167.65 209,587.64 1.26 713.27 MWD+SC+sag(2) 3,812.62 23.77 338.46 3,670.77 3,526.27 679.52 -288.11 2,234,190.92 209,579.07 1.73 738.07 MWD+SC+sag(2) 3,874.12 23.96 337.80 3,727.01 3,582.51 702.61 -297.38 2,234,214.23 209,570.36 0.53 762.95 MWD+SC+sag(2) 3,936.13 24.10 337.92 3,783.64 3,639.14 726.00 -306.90 2,234,237.84 209,561.41 0.24 788.20 MWD+SC+sag(2) 3,998.98 24.24 337.54 3,840.98 3,696.48 749.81 -316.65 2,234,261.88 209,552.23 0.33 813.93 MWD+SC+sag(2) 4,061.13 24.16 337.74 3,897.67 3,753.17 773.38 -326.34 2,234,285.67 209,543.11 0.18 839.41 MWD+SC+sag(2) 4,123.25 24.18 337.08 3,954.35 3,809.85 796.86 -336.11 2,234,309.38 209,533.91 0.44 864.84 MWD+SC+sag(2) 4,185.04 24.02 336.45 4,010.75 3,866.25 820.04 -346.06 2,234,332.80 209,524.51 0.49 890.07 MWD+SC+sag(2) 4,247.83 24.25 338.32 4,068.05 3,923.55 843.74 -355.93 2,234,356.73 209,515.22 1.27 915.74 MWD+SC+sag(2) 4,308.85 24.04 338.19 4,123.73 3,979.23 866.92 -365.18 2,234,380.13 209,506.53 0.36 940.70 MWD+SC+sag(2) 4,370.97 24.05 337.54 4,180.46 4,035.96 890.37 -374.72 2,234,403.79 209,497.56 0.43 966.01 MWD+SC+sag(2) 4,433.20 24.11 336.97 4,237.28 4,092.78 913.79 -384.53 2,234,427.44 209,488.31 0.39 991.40 MWD+SC+sag(2) 4,496.38 24.24 336.76 4,294.92 4,150.42 937.58 -394.70 2,234,451.47 209,478.72 0.25 1,017.27 MWD+SC+sag(2) 4,558.25 24.57 336.00 4,351.26 4,206.76 961.00 -404.94 2,234,475.13 209,469.04 0.74 1,042.83 MWD+SC+sag(2) 4,620.27 23.86 338.33 4,407.82 4,263.32 984.44 -414.82 2,234,498.80 209,459.73 1.92 1,068.26 MWD+SC+sag(2) 4,681.99 23.83 338.01 4,464.28 4,319.78 1,007.60 -424.10 2,234,522.18 209,451.01 0.22 1,093.21 MWD+SC+sag(2) 4,745.10 24.15 337.65 4,521.93 4,377.43 1,031.36 -433.78 2,234,546.16 209,441.91 0.56 1,118.87 MWD+SC+sag(2) 4,808.19 23.93 337.77 4,579.55 4,435.05 1,055.14 -443.53 2,234,570.17 209,432.73 0.36 1,144.57 MWD+SC+sag(2) 4,870.81 23.81 337.12 4,636.82 4,492.32 1,078.54 -453.25 2,234,593.80 209,423.58 0.46 1,169.91 MWD+SC+sag(2) 4,933.31 24.00 336.62 4,693.95 4,549.45 1,101.83 -463.20 2,234,617.32 209,414.19 0.44 1,195.23 MWD+SC+sag(2) 4,995.76 24.17 336.14 4,750.97 4,606.47 1,125.18 -473.41 2,234,640.91 209,404.55 0.42 1,220.72 MWD+SC+sag(2) 5,059.39 23.88 338.49 4,809.09 4,664.59 1,149.08 -483.40 2,234,665.04 209,395.13 1.57 1,246.62 MWD+SC+sag(2) 5,121.93 23.56 338.50 4,866.34 4,721.84 1,172.49 -492.62 2,234,688.66 209,386.48 0.51 1,271.77 MWD+SC+sag(2) 5,182.56 23.23 337.93 4,921.99 4,777.49 1,194.84 -501.56 2,234,711.23 209,378.08 0.66 1,295.84 MWD+SC+sag(2) 5,245.34 23.14 337.88 4,979.70 4,835.20 1,217.74 -510.85 2,234,734.35 209,369.34 0.15 1,320.56 MWD+SC+sag(2) 5,307.67 22.85 337.57 5,037.08 4,892.58 1,240.27 -520.08 2,234,757.09 209,360.66 0.50 1,344.90 MWD+SC+sag(2) 5,369.48 22.93 337.40 5,094.02 4,949.52 1,262.48 -529.29 2,234,779.52 209,351.99 0.17 1,368.95 MWD+SC+sag(2) 5,431.74 22.81 336.84 5,151.38 5,006.88 1,284.78 -538.70 2,234,802.03 209,343.12 0.40 1,393.14 MWD+SC+sag(2) 5,491.15 22.52 338.15 5,206.21 5,061.71 1,305.92 -547.46 2,234,823.38 209,334.87 0.98 1,416.03 MWD+SC+sag(2) 5,553.83 22.84 337.71 5,264.04 5,119.54 1,328.32 -556.54 2,234,845.99 209,326.33 0.58 1,440.20 MWD+SC+sag(2) 5,615.63 22.73 337.33 5,321.02 5,176.52 1,350.44 -565.69 2,234,868.32 209,317.71 0.30 1,464.13 MWD+SC+sag(2) 5,677.40 22.69 336.91 5,378.00 5,233.50 1,372.41 -574.97 2,234,890.51 209,308.97 0.27 1,487.98 MWD+SC+sag(2) 5,739.75 22.64 336.07 5,435.53 5,291.03 1,394.44 -584.55 2,234,912.76 209,299.92 0.53 1,512.00 MWD+SC+sag(2) 5,801.53 22.11 335.39 5,492.66 5,348.16 1,415.88 -594.21 2,234,934.43 209,290.77 0.95 1,535.51 MWD+SC+sag(2) 5,863.33 21.77 335.34 5,549.99 5,405.49 1,436.87 -603.84 2,234,955.64 209,281.65 0.55 1,558.59 MWD+SC+sag(2) 1/27/2017 2:00:44PM Page 4 COMPASS 5000.1 Build 81 • • Halliburton Definitive Survey Report av .,.. as,-.w Aux>,:, ,14.,,.m,-:,.3,.... ..44 Company: Hilcorp Alaska,LLC Local Co-ordinate Reference: Well Kalotsa 2 =4 Project: Ninilchik Unit TVD Reference: Kalotsa 2 wp04 @ 144.50usft Site: Kalotsa MD Reference: Kalotsa 2 wp04 @ 144.50usft Well: Kalotsa 2 North Reference: True Wellbore: Kalotsa 2 Survey Calculation Method: Minimum Curvature g Design: Kalotsa 2 Database: Sperry EDM-NORTH US+CANADA Survey Map Map Vertical MD Inc Azi TVD TVDSS +N/-S +EI-W Northing Easting DLS Section (usft) (°) (°) (usft) (usft) (usft) (usft) (ft) (ft) (°/100') (ft) Survey Tool Name 5,925.34 20.79 338.17 5,607.77 5,463.27 1,457.53 -612.73 2,234,976.52 209,273.26 2.29 1,581.09 MWD+SC+sag(2) 5,988.29 20.43 338.67 5,666.69 5,522.19 1,478.14 -620.88 2,234,997.31 209,265.61 0.64 1,603.24 MWD+SC+sag(2) 6,053.15 18.47 335.79 5,727.85 5,583.35 1,498.06 -629.21 2,235,017.43 209,257.76 3.36 1,624.83 MWD+SC+sag(2) 6,115.70 17.90 337.40 5,787.27 5,642.77 1,515.97 -636.97 2,235,035.52 209,250.44 1.21 1,644.35 MWD+SC+sag(2) 6,179.08 16.37 337.83 5,847.84 5,703.34 1,533.23 -644.08 2,235,052.95 209,243.74 2.42 1,663.02 MWD+SC+sag(2) 6,240.04 14.67 337.51 5,906.57 5,762.07 1,548.32 -650.28 2,235,068.18 209,237.91 2.79 1,679.33 MWD+SC+sag(2) 6,302.85 13.19 338.25 5,967.53 5,823.03 1,562.33 -655.98 2,235,082.32 209,232.55 2.37 1,694.45 MWD+SC+sag(2) 6,365.42 12.17 339.70 6,028.58 5,884.08 1,575.14 -660.91 2,235,095.25 209,227.93 1.71 1,708.18 MWD+SC+sag(2) 6,428.79 10.16 339.01 6,090.74 5,946.24 1,586.63 -665.23 2,235,106.84 209,223.88 3.18 1,720.44 MWD+SC+sag(2) 6,485.94 9.94 337.97 6,147.02 6,002.52 1,595.91 -668.89 2,235,116.20 209,220.45 0.50 1,730.41 MWD+SC+sag(2) 6,552.97 8.98 336.93 6,213.14 6,068.64 1,606.08 -673.11 2,235,126.47 209,216.48 1.45 1,741.43 MWD+SC+sag(2) 6,615.68 8.92 334.95 6,275.08 6,130.58 1,614.99 -677.08 2,235,135.47 209,212.72 0.50 1,751.18 MWD+SC+sag(2) 6,677.36 7.50 336.56 6,336.13 6,191.63 1,623.01 -680.71 2,235,143.59 209,209.29 2.33 1,759.98 MWD+SC+sag(2) 6,738.18 6.34 338.26 6,396.50 6,252.00 1,629.78 -683.53 2,235,150.41 209,206.63 1.94 1,767.31 MWD+SC+sag(2) 6,799.63 5.11 333.18 6,457.65 6,313.15 1,635.37 -686.02 2,235,156.06 209,204.27 2.16 1,773.43 MWD+SC+sag(2) 6,863.88 3.81 329.99 6,521.70 6,377.20 1,639.77 -688.38 2,235,160.52 209,202.02 2.06 1,778.40 MWD+SC+sag(2) 6,925.24 3.58 327.64 6,582.93 6,438.43 1,643.16 -690.43 2,235,163.95 209,200.06 0.45 1,782.31 MWD+SC+sag(2) 6,987.61 2.22 322.56 6,645.22 6,500.72 1,645.76 -692.20 2,235,166.60 209,198.34 2.22 1,785.40 MWD+SC+sag(2) 7,049.24 1.22 296.18 6,706.82 6,562.32 1,647.00 -693.52 2,235,167.87 209,197.06 2.03 1,787.05 MWD+SC+sag(2) 7,110.77 1.20 282.04 6,768.34 6,623.84 1,647.42 -694.74 2,235,168.32 209,195.85 0.49 1,787.91 MWD+SC+sag(2) 7,173.08 1.33 283.12 6,830.64 6,686.14 1,647.72 -696.08 2,235,168.65 209,194.52 0.21 1,788.71 MWD+SC+sag(2) 7,236.04 1.44 284.35 6,893.58 6,749.08 1,648.08 -697.56 2,235,169.05 209,193.05 0.18 1,789.61 MWD+SC+sag(2) 7,297.66 0.80 264.93 6,955.19 6,810.69 1,646.24 -698.73 2,235,169.23 209,191.87 1.19 1,790.21 MWD+SC+sag(2) 7,359.16 0.65 266.49 7,016.68 6,872.18 1,648.18 -699.51 2,235,169.19 209,191.10 0.25 1,790.45 MWD+SC+sag(2) 7,421.26 0.83 261.37 7,078.78 6,934.28 1,648.09 -700.31 2,235,169.12 209,190.30 0.31 1,790.68 MWD+SC+sag(2) 7,484.75 1.03 271.21 7,142.26 6,997.76 1,648.03 -701.33 2,235,169.09 209,189.27 0.40 1,791.02 MWD+SC+sag(2) 7,544.50 1.35 269.18 7,201.99 7,057.49 1,648.03 -702.57 2,235,169.12 209,188.03 0.54 1,791.50 MWD+SC+sag(2) 7,607.15 1.90 269.63 7,264.62 7,120.12 1,648.02 -704.35 2,235,169.15 209,186.25 0.88 1,792.17 MWD+SC+sag(2) 7,669.10 0.82 278.20 7,326.55 7,182.05 1,648.07 -705.81 2,235,169.24 209,184.79 1.77 1,792.79 MWD+SC+sag(2) 7,731.37 0.37 340.78 7,388.82 7,244.32 1,648.33 -706.32 2,235,169.50 209,184.29 1.17 1,793.22 MWD+SC+sag(2) 7,793.12 0.18 260.96 7,450.57 7,306.07 1,648.50 -706.48 2,235,169.68 209,184.13 0.62 1,793.44 MWD+SC+sag(2) 7,854.79 0.17 253.62 7,512.24 7,367.74 1,648.46 -706.67 2,235,169.64 209,183.95 0.04 1,793.47 MWD+SC+sag(2) 7,916.55 0.17 275.08 7,574.00 7,429.50 1,648.44 -706.85 2,235,169.63 209,183.77 0.10 1,793.53 MWD+SC+sag(2) 7,978.81 0.51 264.52 7,636.26 7,491.76 1,648.42 -707.21 2,235,169.62 209,183.40 0.55 1,793.65 MWD+SC+sag(2) 8,041.15 0.90 269.63 7,698.59 7,554.09 1,648.39 -707.98 2,235,169.61 209,182.63 0.63 1,793.92 MWD+SC+sag(2) 8,103.06 0.86 257.98 7,760.49 7,615.99 1,648.29 -708.92 2,235,169.53 209,181.69 0.30 1,794.19 MWD+SC+sag(2) 8,155.52 1.01 263.30 7,812.95 7,668.45 1,648.16 -709.76 2,235,169.42 209,180.84 0.33 1,794.39 MWD+SC+sag(2) 8,200.00 1.01 263.30 7,857.42 7,712.92 1,648.06 -710.54 2,235,169.35 209,180.06 0.00 1,794.61 PROJECTED to TD 1/27/2017 2:00:44PM Page 5 COMPASS 5000.1 Build 81 0 • Halliburton Definitive Survey Report Company: Hilcorp Alaska,LLC Local Co-ordinate Reference: Well Kalotsa 2 Project: Ninilchik Unit TVD Reference: Kalotsa 2 wp04 @ 144.50usft Site: Kalotsa MD Reference: Kalotsa 2 wp04 @ 144.50usft Well: Kalotsa 2 North Reference: True Wellbore: Kalotsa 2 Survey Calculation Method: Minimum Curvature Design: Kalotsa 2 Database: Sperry EDM-NORTH US+CANADA mi17.01.2711:ha15-09on.com Michael Calkins«. Checked By: zon.o,.vnor.,s-o9oo Approved By: m Date: 1/27/2017 1/27/2017 2:00:44PM Page 6 COMPASS 5000.1 Build 81 • Hilcorp Energy Company • CASING&CEMENTING REPORT Lease&Well No. NINU Kalotsa 2 Date Run 8-Jan-17 County State Alaska Supv. Pederson/Dorr CASING RECORD Surface V TD 1,388.00 Shoe Depth: 1,379.08 PBTD: 1,295.00 No.Jts.Delivered No.Jts.Run 33 No.Jts.Returned Ftg.Delivered Ftg.Run 1,357.67 Ftg.Returned Length Measurements W/O Threads Ftg.Cut Jt. Ftg.Balance RKB 18.00 RKB to BHF RKB to CHF 20.50 RKB to THF Casing(Or Liner)Detail Setting Depths Jts. Component Size Wt. Grade THD Make Length Bottom Top Shoe 8 5/8 BTC Weatherford 1.63 _ 1,379.08 1,377.45 2 Casing 7 5/8 29.7 L-80 BTC VAM 81.38 1,377.45 1,296.07 _ Float Collar 8 5/8 BTC Weatherford 1.32 _ 1,296.07 1,294.75 30 Casing 7 5/8 29.7 L-80 BTC VAM 1,221.33 _ 1,294.75 73.42 Pup Joint A 7 5/8 29.7 L-80 BTC VAM 10.12 73.42 63.30 1 Casing 7 5/8 29.7 L-80 BTC VAM 38.63 63.30 24.67 Hanger Pup 7 5/8 29.7 L-80 BTC Cactus 2.26 24.67 22.41 Casing Hanger 13 3/8 BTC Cactus 1.00 22.41 21.41 Csg Wt.On Hook: 40 Type Float Collar: Weatherford 402 No.Hrs to Run: 4 Csg Wt.On Slips: Type of Shoe: Weatherford 323 Casing Crew: Weatherford Rotate Csg Yes X No Recip Csg X Yes No 10 Ft.Min. 9 PPG Fluid Description: Spud Mud Liner hanger Info(Make/Model): Liner top Packer?: _Yes _No Liner hanger test pressure: Floats Held X Yes_ No Centralizer Placement: 1 centralizer per joint on#1 and#2. 1 centralizer every other joint#3 to#27(16 total centralizers) CEMENTING REPORT Shoe @ 1379.08 FC @ 1,294.75 Top of Liner Preflush(Spacer) Type: MudPush II Density(ppg) 10 Volume pumped(BBLs) 27 Lead Slurry Type: Class A Sacks: 197 Yield: 2.44 Density(ppg) 12 Volume pumped(BBLs) 086 Mixing/Pumping Rate(bpm): 5 Tail Slurry w Type: Class ASacks: 150 Yield: 1.22 F Density(ppg) 15.4 Volume pumped(BBLs) 33 Mixing/Pumping Rate(bpm): 5.4 y Post Flush(Spacer) 1- cc Type: Density(ppg) Rate(bpm): Volume: T. Displacement: Type: Spud Mud Density(ppg) 9 Rate(bpm): 5 Volume(actual/calculated): 59.6/59.6 FCP(psi): 490 Pump used for disp: SLB Bump Plug? X Yes No Bump press 1200 Casing Rotated? Yes X No Reciprocated? X Yes No %Returns during job 100 Cement returns to surface? X Yes No Spacer returns? X Yes No Vol to Surf: 47 . Cement In Place At: 17:54 Date: 1/8/2017 Estimated TOC: 22 Method Used To Determine TOC: Returns Post Job Calculations: Calculated Cmt Vol @ 0%excess: 71.5 Total Volume cmt Pumped: 119 Cmt returned to surface: 47.5 Calculated cement left in wellbore: 71.5 OH volume Calculated: 71.5 OH volume actual: 71.5 Actual%Washout: www.wellez.net WellEz Information Management LLC ver_102716bf • Hilcorp Energy Company • CASING&CEMENTING REPORT Lease&Well No. NINU Kalotsa 2 Date Run 25-Jan-17 County State Alaska Supv. Montague/Dorr CASING RECORD Production TD 8,200.00 Shoe Depth: 8,184.49 PBTD: 8,140.00 No.Jts.Delivered 226 No.Jts.Run 198 No.Jts.Returned 28 Ftg.Delivered Ftg.Run 8,165.82 Ftg.Returned Length Measurements W/O Threads Ftg.Cut Jt. Ftg.Balance RKB 18.00 RKB to BHF RKB to CHF 20.50 RKB to THF Casing(Or Liner)Detail Setting Depths Jts. Component Size Wt. Grade THD Make Length Bottom Top Shoe 5 DWC Weatherford 1.61 8,184.49 8,182.88 1 Casing 41/2 12.6 L-80 DWC VAM 41.66 8,182.88 8,141.22 Float Collar 5 DWC Weatherford 1.35 8,141.22 8,139.87 169 Casing 41/2 12.6 L-80 DWC VAM 6,933.21 8,139.87 1,206.66 Pup Jt 4 1/2 12.6 L-80 _ DWC VAM 9.87 1,206.66 1,196.79 Swell Packer 6 DWC Baker 14.95 1,196.79 1,181.84 Pup Jt 4 1/2 12.6 L-80 DWC VAM 9.82 1,181.84 1,172.02 8 Casing 41/2 12.6 L-80 DWC VAM 1,153.35 1,172.02 18.67 Csg Wt.On Hook: 60,000 Type Float Collar: Weatherford 402E No.Hrs to Run: 12 Csg Wt.On Slips: Type of Shoe: Weatherford 303E Casing Crew: Weatherford Rotate Csg Yes X No Recip Csg Yes X No Ft.Min. 9.7 PPG Fluid Description: 6%KCL PHPA Liner hanger Info(Make/Model): Liner top Packer?: Yes No Liner hanger test pressure: Floats Held X Yes No Centralizer Placement: Ran one centralizer every other joint up to 1450' CEMENTING REPORT Shoe @ 8184.49 FC @ 8,139.87 Top of Liner *N/A Preflush(Spacer) Type: MudPush II Density(ppg) 10.5 Volume pumped(BBLs) 17 Lead Slurry Type: Class G Sacks: 601 Yield: 1.69 Density(ppg) 13.5 Volume pumped(BBLs) 181 Mixing/Pumping Rate(bpm): 5.5 Tail Slurry w Type: Class G Sacks: 153 Yield: 1.34 F Density(ppg) 15.3 Volume pumped(BBLs) 36.4 Mixing/Pumping Rate(bpm): 5.5 u) Post Flush(Spacer) 1- re Type: Water Density(ppg) 8.34 Rate(bpm): 6.2 Volume: 10 LL Displacement: Type: 6%KCL Density(ppg) 8.6 Rate(bpm): 6.2 Volume(actual/calculated): 114/114 FCP(psi): 3200 Pump used for disp: SLB Cement Unit Bump Plug? Yes X No Bump press Casing Rotated? Yes X No Reciprocated? Yes X No %Returns during job 96.6 Cement returns to surface? Yes X No Spacer returns? Yes X No Vol to Surf: 0 Cement In Place At: 7:21 Date: 1/26/2017 Estimated TOC: 682 Method Used To Determine TOC: Lift pressure calculation *- es- 5`4• 1-2)6 63 53e_ -k.L1 0 S Z 47 Post Job Calculations: Calculated Cmt Vol @ 0%excess: 181.46 Total Volume cmt Pumped: 217.4 Cmt returned to surface: 0 Calculated cement left in wellbore: 217.4 OH volume Calculated: 167.75 OH volume actual: Actual%Washout: www.wellez.net WeIIEz Information Management LLC ver_102716bf • • Kalotsa 2 FINAL Days vs Depth 0 Kalotsa 2 Actual 500 Kalotsa 2 Plan 1000 1500 2000 2500 3000 3500 4000 4500 3 uf6i 5000 2 5500 6000 6500 7000 7500 8000 ti 8500 . ..,� 9000 0 5 10 15 20 25 30 Days • • Kalotsa 2 MW vs Depth 0 Kalotsa 2 Plan 1000 Kalotsa 2 Actual 2000 3000 4000 5000 z 6000 s 7000 3 CO CO v ij 8000 9000 10000 11000 12000 13000 14000 8.0 9.0 10.0 11.0 12.0 13.0 14.0 Mud Density(ppg) 21 g1 !i5 Seth Nolan Hilcorp Alaska, LLC GeoTech 3800 Centerpoint Drive 2 8 0 4 7 Anchorage, AK 99503 RECEIVED Tele: 907 777-8308 n�i•„ri, 1ia4.:,. Fax: 907 777-8510 E-mail: snolan@hilcorp.com MAR 0 9 2017 DATE 02/23/2017 ��1C DATA LOGGED /13/2011 M K.BENDER To: Alaska Oil & Gas Conservation Commission Makana Bender Petroleum Geology Assistant 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL Kalotsa 2 Elog Prints and Digital data Prints Reservoir Saturation Tool PNL-GR-CCL Slim Cement Mapping Tool CBL-VDL-GR-CCL CD: Final Well Data DLIS Data 2/17/2017 10:17 AM File folder LAS Data 2/17/201710:17 AM File folder Log 2/21/2017 10:04 AM File folder Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: Date: 6,,,„ett OF T� a THE STATE Alaska Oil and Gas ; ofA LASKA Conservation Commission 333 West Seventh Avenue GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 Main: 907.279.1433 ALAs� Fax: 907.276.7542 www.aogcc.alaska.gov Chad Helgeson Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Ninilchik Field, Beluga/Tyonek Gas Pool, Kalotsa 2 Permit to Drill Number: 216-155 Sundry Number: 317-072 Dear Mr. Helgeson: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown,a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. 'ncerely, Daniel T. Seamount, Jr. G � Commissioner DATED this Z may of February, 2017. RBDMS U1-/ F 1 7 2017 • • RECEIVED STATE OF ALASKA FEB 1 3 2017 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 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 Jetting ❑� ' 2.Operator Name: Hilcorp Alaska,LLC 4.Current Well Class: 5.Permit to Drill Number: Exploratory ❑ Development Q ' 216-155 ' 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic ❑ Service ❑ 6.API Number: Anchorage,Alaska 99503 50-133-20659-00 • 7.If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? C.O 701A ' ElKalotsa 2 • Will planned perforations require a spacing exception? Yes El No 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL359272/C061505/ADL384372 Ninilchik-Beluga/Tyonek Gas Pool ' 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth ND(ft): Effective Depth MD: Effective Depth ND: MPSP(psi): Plugs(MD): Junk(MD): 8,200' 7,857' 8,068' 7,725' 1,574 psi N/A N/A Casing Length Size MD ND Burst Collapse Structural Conductor 120' 16" 120' 120' 2,980psi 1,410psi Surface 1,379' 7-5/8" 1,379' 1,379' 6,890psi 4,790psi Intermediate Production 8,184' 4-1/2" 8,184' 7,841' 8,430psi 7,500psi Liner Perforation Depth MD(ft): Perforation Depth ND(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 ND(ft): Baker Swell Pkr;N/A 1,181'MD/1,181'TVD;N/A 12.Attachments: Proposal Summary Q 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: February 27,2017 OIL ❑ WINJ ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: GAS ❑✓ - WAG ❑ GSTOR ❑ SPLUG ❑ Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Contact Taylor Nasse-777-8354 Email tnasseCa7hilcorp.com Printed Name Chad Helgeson Title Operations Manager Signature ( y/#0."7": °' Phone 907-777-8405 Date Z I 1 3 iJ7 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: �, � 31I- 0-72 Plug Integrity ❑ BOP Test Mechanical Integrity Test ❑ Location Clearance ❑ t-,T 2Z ( 1r- Other: ‘15-e)L' ,3,. 84)P (es FTT) RDDMS (,v FEB 2 7 2017 Post Initial Injection MIT Req'd? Yes ❑ No ❑ // Spacing Exception Required? Yes ❑ No L Subsequent Form Required: Li6.7 t_€f' /4.1701.4 411 Pi / APPROVED BY //�� Approved by: COMMISSIONER THE COMMISSION Date: Z l Z 7`' / 1 ) v j I Submits Form and Form 10-403 Revi f7#_I 11/2015tpiiidGici4ALfor 12 months from the date of approval. Attachmen}t� Duplicate • • Well Prognosis Well: Kalotsa#2 Hilcorp Alaska,LL Date:2/13/2017 Well Name: Kalotsa #2 API Number: 50-133-20659-00 Current Status: New Grassroots Well Leg: N/A Estimated Start Date: Feb. 27th, 2017 Rig: Reg.Approval Req'd? Yes Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 216-155 First Call Engineer: Taylor Nasse (907)777-8354 (0) (907) 903-0341 (C) Second Call Engineer: Chad Helgeson (907)777-8405 (0) (907) 229-4824 (C) AFE Number: 1612640C Maximum Expected BHP: —2,050 psi @ 4,767' TVD (Assumed 0.43 psi/ft gradient) Max. Potential Surface Pressure: — 1,574 psi (Based on expected BHP and gas gradient to surface (0.10psi/ft) Brief Well Summary Kalotsa #2 is a grass roots development well targeting gas sands in the Tyonek formation. This new well ' reached TD on 1/19/16. The purpose of this work/sundry is to evaluate cement,jet the well dry with CT, and perforate. Notes Regarding Wellbore Condition • Well will be filled with filtered 6% KCI. • Slickline tag and make gauge ring run prior to starting work. • An MIT-IA(7-5/8" x 4-1/2")will be performed to 2,500 psig for 30 minutes using the cpiled tubing to beginningof work. / rte_ L✓ {s'�- ' �z+ c-- pumps prior sundry 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 this job) • Ensure all crews are aware of stop job authority • CBL and PNL completed 2/6/17,Top of Cement 2,840' Coiled Tubing Procedure (start of Sundry work) 1. MIRU Coiled Tubing, PT BOPE to 4,500 psi Hi 250 Low. Notify AOGCC 24 hrs. in advance of BOP test. 2. RIH w/ 1-3/4" coiled tubing and 2-1/4"jet nozzle BHA to±8,068' MD and tag PBTD. 3. PU 10ft and displace well fluids with Nitrogen. a. Estimated volume of displaced 6% KCI is 123 bbl. 4. Once well is dry,verify desired surface pressure to leave on well with Operations Engineer. 5. POOH w/coil. LD BHA. 6. RD Coiled Tubing. • • Well Prognosis Well: Kalotsa#2 Ililcorp Alaska,LL Date:2/13/2017 E-Line Procedure 7. MIRU e-line and pressure control equipment. PT lubricator to 2,000 psi Hi 250 Low. Note that the well is pressurized with nitrogen. a. If necessary, bleed pressure down as requested by the RE to establish a drawdown on the formation. 8. Perforate the Tyonek sands with 2-7/8" 6 SPF 60 deg phased perf guns—see attached "Proposed Schematic" for proposed perforation intervals. All intervals are planned for 12 SPF so each may be shot twice. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist . for confirmation. 9. POOH. 10. If any of the sands are not commercial or wet,the zone will be permanently plugged back. 11. RD e-line. 12. Turn well over to production. Attachments: 1. Actual and Proposed Schematic 2. Coil BOPE Schematic 3. CT Flow Diagrams(Forward and Reverse Jetting) 4. Wellhead Diagram • • Ninilchik II SCHEMATIC Well Kalotsa #2 PTD: 216-155 API: 50-133-20659-00 Hilcorp Alaska,LLC RKB=18.7' CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16" 4V,i Conductor— 16" Driven to 84 X-56 Weld 15.01" Surf 120' Nr k g: Set Depth 7-5/8" Surf Csg 29.7 L-80 BTC 6.875" Surf 1,379' t:1 till 4-1/2" Prod Csg 12.6 L-80 DWC/CT/ 3.958" Surf 8,184' 4 I. '!:4 ----- (it& -r- 1,4 , 54 7-5/8" * ' " 1 -Tr-) M1) 1- (311t JEWELRY DETAIL TOC @ No. Depth ID OD Item c . 1- . 2,840' 1 1,181' 3.958" 6.875" Baker Swell Packer 1 fl ..0; `1 � ` it ViArte .. I 4 yr-� :. #1�' It Sae�'" sw .rte Mh. 0, ," k i�Y .40 0: . ► 4.4 to °� 4t ,0441,,, 'I" ‘. ili a .„„. , ., 4-1/2" g., ., ,.„ L e PBTD=8,068'/PBTVD=7,725' TD=8,200'/TVD=7,857' Updated by TWN 2/10/17 0 Ninilchik , in PROPOSED Well Kalotsa #2 PTD: 216-155 Hileorp Alaska,LLf. SCHEMATIC API: 50-133-20659-00 RKB=18.7' CASING DETAIL ;1 Size Type Wt Grade Conn. ID Top Btm 16" , r. Conductor— 16" Driven to 84 X-56 Weld 15.01" Surf 120' . Set Depth 7-5/8" Surf Csg 29.7 L-80 BTC 6.875" Surf 1,379' 171 *101 V. 4-1/2" Prod Csg 12.6 L-80 DHT/C 3.958" Surf 8,184' 4,;44 ..1,, t, 7-5/8" t. 1 JEWELRY DETAIL TOC @ No. Depth ID OD Item —2,840' 1 1,181' 3.958" 6.875" Baker Swell Packer ,I 1 PERFORATION DETAIL Sands Top(MD) Btm(MD) Top(TVD) Btm(TVD) ft Size Date a T12 4,937' 5,013' 4,697' 4,767' 76 2-7/8" TBD . T12 4-1/2" ti . mi PBTD=8,068'/PBTVD=7,725' TD=8,200'/TVD=7,857' Updated by TWN 2/10/17 ' . . Ninilchik Gas Field Kalotsa #2 02/10/2017 Ililrorr V11.1.,1.I ( Coil Tubing BOP I Lubricator to injection head 1 0 i Ix) 1.75" Tandem Stripper JIuIu I41/1610 'Blind/Shea:_ insi Blind/Shear ■ ,'■ 2 ■lull Blind/Shear Blind/Shead,'.'■ C !_11111111011 ii-, �• ! EINEMO® !_ _ _ // C■',I.I Slip ■ ■– Slip _ — : III ■11ll Pipe Ell Pipe 11111 Mud Cross C –s_ : 4 1/16 10M X 4 1/16 10M Outlet ... ... A w/ 2- 2 1/16 10M full „ opening FMC valves ; - F. : on on ; III 0 l 101 �_' � oIi - i Imu UI - - Manual Manual Manual Manual 21/1610M 2 1/16 10M ISI 2 1/16 10M 2 1/16 10M Crossover spool ISI 4 1/16 10M X 4 1/16 5M • • ;; s3 (I) .1 D Q : ! C < 1 , 1 � m C= = 1 ) U 2 Q CO O 1 . ) ,.. y , ) C O F C ' C e-.m 0 i CD V • C A I o c • A o d 0 1- I r t In I' II � mu IuII 4 11111■11, el4 ylit ' MI IIII ill ill = • , w a Z C C 0 H n a F- IIu c L� W O , � o / -•-. . o i O 00 L 1 8 It ,.. ig ..,1 ,1111: 7 1I o, OEL U N O O11 0 I L k d i 0 • ; g] ! 3 I 1 . 1 Cs U r I-- ZN 1 ' ] r li y 1 az0 , IO p W C U Al ►•1 � V 'Z Q N 3333 II • D A e C 11!1 N Z -io cu U Z o CD d CY o H 'I I' IIU I _, - - I�l!IuI 0 1011■N4IIII It Iii IIII IIII IIII I Y c O r a Lr 1 _ • O w n . O 3 c 8 c O c � ill!' rn c � c0,_ O n -2 a il II U N O Z b � O uI0 • SI' x L k 3 •i • • • ili Ninilchik Unit Kalotsa #1 and #2 01/13/2016 min" Ua.An.lit. Ninilchik Unit Casing hanger,CW,11 x4 St Kalotsa#1 and 2 DWC/C box btm x 6.125"RH 16 x75/8x414 stub acme box top,w/75/8 od neck,4"type H BPV profile,DD-NL material BHTA,Otis,4 1/16 5M FE x 6.5 Otis quick union top I sit niru! i.Jaijejsit i Valve,Swab,WKM-M ,N Vei 6. 4 1/16 5M FE,HWO, V) 'lilt EE trim Y V Qi Valve,Wing,WKM-M, � 3 1/8 5M FE,HWO, Valve,Wing,SSV,WKM-M, 3 1/8 SM FE,w/15"Hydraulic 11111117=1111 E trim 111111111.1111 operator MO ,71V\ Valve,Upper master, itt, C,: WKM-M, 4 1/16 5M FE,HWO,EE trim "✓ '' . O . iij RI■ow lum Ill V41ve,1/165MeFE, WOM �`)l' C" EE trim III 1■1_I.lel Tubing head,Cactus C-29L- ' 111.`'i HPS,13 5/8 SM x 11 SM,w/ EaINS�1� ;NIm.rla.,- 2-2 1/16 SM SSO 1111101 13 O. i i ^11 - g t _'7! l/ fII 'f -ti { i 1 - _ , Starting head,Cactus C-291, I. �� r�[1��,..'.e.__ 135/85Mx 16 SOW,w/2-2 — qq 1/165MSSO -V II a i ii li- G - ft a —11 16" 7 5/8" 4 h" • i . 11 STANDARD WELL PROCEDURE is ka. (: 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 21 61 55 Seth Nolan Hilcorp Alaska, LLC 2 7 9 9 GeoTech 3800 Centerpoint Drive RECEIVED Anchorage, AK 99503 Tele: 907 777-8308 ita, ,Tp %i,A.,.ill Fax: 907 777-8510 E-mail: snolan@hilcorp.com FEB 15 2017 AOGCCDATA LOGGED DATE 02/14/2017 .Z./171/201 { BENDER To: Alaska Oil & Gas Conservation Commission Makana Bender Petroleum Geology Assistant 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL Kalotsa 2 Mudlog Prints and Digital data Prints 5"Formation Log MD/TVD 2"Gas Ratio Log MD/TVD 2"Formation Log MD/TVD 2"Drilling Dynamics Log MD/TVD 2"LWD Combo Log MD/TVD Final Well Report CD: Final Well Data Log TIFFs 21412017 3:50 PM File folder Daily Report 2/14/201.7 8:09 AM File folder DML Data 2/14/2017 8:09 AM File folder Final Well Report 2/14/2017 8:09 AM File folder LAS Data 2/14/2017 8:09 AM File folder Log PDFs 2/4/2017 3:50 PM File folder Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: Date: • • 21 61 55 Seth Nolan Hilcorp Alaska, LLC 2 9 9 2 GeoTech 3800 Centerpoint Drive RECEIVED Anchorage 907,777-899503308 ffilvarp:Alaska.LU; Fax: 907 777-8510 FEB 15 2017 E-mail: snolan@hilcorp.com DATA LOGGED ACJGCC 2./0,201/ K BENDER DATE 02/14/2017 To: Alaska Oil & Gas Conservation Commission Makana Bender Petroleum Geology Assistant 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL Kalotsa 2 Elog Prints and Digital data Prints 2"/5" ROP-DGR-EWR-ALD-CTN MD 2"/5"DGR-EWR-ALD-CTN TVD CD: Final Well Data _Log Viewers 1/27/2017 4:45 PM File folder CGM 1/27/2017 4:45 PM File folder Definitive Survey 1/27/2017 4:45 PM File folder EMF 1/27/2017 4:45 PM File folder LAS 1/27/2017 4:45 PM File folder PDF 1/27/20174:45 PM File folder TIFF 1/27/20174:45 PM File folder Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: Date: 21 10-t,s1; • Sqq-- Seth Nolan Hilcorp Alaska, LLC RECEIVED GeoTech 3800 Centerpoint Drive Anchorage, AK 99503 FEB 1 2017 Tele: 907 777-8308 aeA,„ti, ua.i,,,. Fax: 907 777-8510 �®�� E-mail: snolan@hilcorp.com DATE 02/14/2017 To: AOGCC Meredith Guhl 333 W. 7th Ave. Ste#100 Anchorage, AK 99501 DATA TRANSMITTAL Kalotsa 2 WELL SAMPLE INTERVAL KALOTSA 2 1390-2650 KALOTSA 2 2650-3910 KALOTSA 2 3910-5170 KALOTSA 2 5170-6790 KALOTSA 2 6790-8200 Please include current contact information if different from above. Please acknowledge receip by signing and returning one copy of this transmittal or FAX to 907 777.8510 Receiv- a Date: yor Ty ///,// THE STATE. Alaska Oil and Gas h�,,-i_ .�� o f/\ T /\ C} A Conservation Commission 333 West Seventh Avenue r Anchorage, Alaska 99501-3572 '.°3111i* GOVERNOR BILL WALKER =n, Main: 907.279.1433 cop 'In", �P. ALAS Fax: 907.276.7542 www.aogcc.alaska.gov Monty Myers Drilling Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Ninilchik Field, Beluga/Tyonek Gas Pool, Kalotsa 2 Hilcorp Alaska, LLC Permit to Drill Number: 216-155 Surface Location: 2231' FSL, 452' FWL, SEC. 7, T1S, R13W, SM, AK Bottomhole Location: 1310' FNL, 243' FEL, SEC. 12, T1S, R14W, SM, AK Dear Mr. Myers: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition,the AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20,Chapter 25 of the Alaska Administrative Code unless the AOGCC specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05,Title 20,Chapter 25 of the Alaska Administrative Code, or an AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, /)71—e Cathy '. Foerster Chair DATED this / day of December, 2016. i EC E WE STATE OF ALASKA AA OIL AND GAS CONSERVATION COMMON NOV 10 2016 PERMIT TO DRILL 20 AAC 25.005 AOGCC 1 a.Type of Work: lb.Proposed Well Class: Exploratory-Gas ❑ Service- WAG ❑ Service-Disp ❑ 1 c.Specify if well is proposed for: Drill 0 - Lateral ❑ Stratigraphic Test ❑ Development-Oil ❑ Service- Winj ❑ Single Zone 0 . Coalbed Gas ❑ Gas Hydrates ❑ Redrill❑ Reentry❑ Exploratory-Oil ❑ Development-Gas El • Service-Supply ❑ Multiple Zone ❑ Geothermal ❑ Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket El. Single Well ❑ 11.Well Name and Number: Hilcorp Alaska,LLC Bond No. 022035244. Kalotsa 2 • 3.Address: 6.Proposed Depth: 12.Field/Pool(s): 3800 Centerpoint Drive,Suite 1400,Anchorage,AK 99503 MD: 8,500' . TVD: 8,150' • Ninilchik Field 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): Beluga/Tyonek Gas Pool • Surface: 2231'FSL,452'FWL,Sec 7,T1S,R13W,SM,AK . (SHL/TPH)C061505/(BHL)ADL384372 Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: 2401'FNL,213'FWL,Sec 7,T1S,R13W,SM,AK N/A �i 12/15/2016 • Total Depth: 9.Acres in Property: iSpc.35 r2_Yz_ r+J)14.Distance to Nearest Property: 1310'FNL,243'FEL,Sec 12,T1S,R14W,SM,AK C061505-1615 acres/ADL384372-3147 ac(es``/' 4,062'to nearest unit boundary . 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL(ft): 144.5 • 15.Distance to Nearest Well Open Surface: x-209850 • y- 2233504 ' Zone-4 GL Elevation above MSL(ft): 126.5 • to Same Pool: 1864'to S.Dionne 5 • 16.Deviated wells: Kickoff depth: 1,500 feet . 17.Maximum Potential Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: 24 degrees Downhole: 3668 • Surface: 2853 '' 18.Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity,c.f.or sacks Hole Casing Weight Grade / Coupling Length MD TVD MD TVD (including stage data) Conductor 16" 84# J-55 Weld 120' Surface Surface 120' 120' Driven 9-7/8" 7-5/8" 29.7# L-80 BTC 1,500' Surface Surface 1,500' 1,500' 688.4 ft3 6-3/4" 4-1/2" 12.6# L-80 DWC/C 8,500' Surface Surface 8,500' 8,150' 1327 ft3 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth ND(ft): Plugs(measured): Effect.Depth MD(ft): Effect.Depth ND(ft): Junk(measured): Casing Length Size Cement Volume MD ND Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth ND(ft): 20. Attachments: Property Plat Q BOP Sketch Q Drilling Program 0 Time v.Depth Plot Q Shallow Hazard Analysis❑ Diverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program ❑✓ 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 22.I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Contact Email mmyers(cilhilcorp.com Printed Name Monty Myers Title Drilling Engineer Signature��` " Phone 777-8431 Date 1 t• /0 . 10 / Commission Use Only Permit toDrill DAPI Number: Permit Approval /� See cover letter for other Number: ZIj'--l:�S 50-/3�26� E Date: I;.t'1\l 0 requirements. Conditions of approval: If box i� X- hecked,well may not be used to explore for,test,or produce coalbed methane as hydrates,or gas contained in shales: L Other: 3 toss b6 e _./,. f Samples req'd: Yes 111 No Mud log req'd:Yes❑ No[]/ /I Y, H2S measures: Yes❑ No Directional svy req'd:Yes[ No❑ 1�s�e v.—IL-et— )�e ( i '{� -If Spacing exception req'd: Yes❑ No g Inclination-only svy req'd:Yes❑ No 2 (el initial'n)ection MIT req'd:Yes❑ No❑ iii iip .,S itj . __K.- F--i--,-- ,..-P 1 3.,,s-- lapa_ FA.-tv,J i.-47-7 CC-42-1'4' Approved by: ,. J`'� � APPROVED BY /— / COMMISSIONER THEE COMMISSION Date/2— �(e, i Z. - /(,. Submit Form and For f!0-401(Revised 11/2015) OhR 4 1rAdloA4Lonths from the date of approval(20 AAC 25.0050) Attachments in Duplicate / ` ii4 " 1(•/7 / j ; Hilcorp Alaska, LLC • 411 P.O. Box 244027 Monty Myers Anchorage,AK 99524-4027 Drilling Engineer Tel 907 777 8431 Email mmyers@hilcorp.com Hilcorp Energy Company 11/10/2016 Commissioner RECEIVED Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue NOV 10 2016 Anchorage, Alaska 99501 AOGCC Re: Kalotsa 2 Dear Commissioner, Kalotsa#2 is an S-shaped directional grassroots development well to be drilled off of the Kalotsa pad. Reservoir analysis and subsurface mapping has identified an optimal location for infill development of the Upper Tyonek sands, as well as an area with little to no production in the Middle and Upper Beluga sands. The base plan is a directional wellbore with a kick off point at 1500' MD. Maximum hole angle will be 24 deg. and TD of the well will be 8500' TMD/8150' TVD, ending with 0 deg inclination left in the hole. Vertical section will be 1794 ft. Drilling operations are expected to commence approximately December 15th 2016. The Saxon Rig # 169 will be used to drill the wellbore then run casing and cement. If you have any questions, please don't hesitate to contact myself at 777-8431 or Paul Mazzolini at 777-8369. Sincerely, IF 101 Drilling ngineer Hilcorp Alaska, LLC Page 1 of 1 • • Hilcorp Alaska, LLC Kalotsa#2 Drilling Program Ninilchik Unit Rev 0 November 14th, 2016 • • Kalotsa#2 Drilling Procedure Hilcorp Energy Company Contents 1.0 Well Summary 2 2.0 Management of Change Information 3 3.0 Tubular Program: 4 4.0 Drill Pipe Information: 4 5.0 Internal Reporting Requirements 5 6.0 Planned Wellbore Schematic 6 7.0 Drilling/Completion Summary 7 8.0 Mandatory Regulatory Compliance/Notifications 8 9.0 R/U and Preparatory Work 10 10.0 N/U 16"Conductor Riser 11 11.0 Drill 9-7/8"Hole Section 13 12.0 Run 7-5/8" Surface Casing 17 13.0 Cement 7-5/8" Surface Casing 19 14.0 BOP N/U and Test 22 15.0 Drill 6-3/4"Hole Section 23 16.0 Run 4-1/2"Production Casing 28 17.0 Cement 4-1/2"Production Casing 31 18.0 RDMO 33 19.0 BOP Schematic 34 20.0 Wellhead Schematic 35 21.0 Days Vs Depth 36 22.0 Geo-Prog 37 23.0 Anticipated Drilling Hazards 38 24.0 Saxon Rig 169 Layout 40 25.0 FIT Procedure 41 26.0 Choke Manifold Schematic 42 27.0 Casing Design Information 43 28.0 6-3/4"Hole Section MASP 44 29.0 Spider Plot(NAD 27) (Governmental Sections) 45 30.0 Surface Plat(NAD 27) 46 31.0 Directional Plan (wp04) 47 • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp EnergY Company 1.0 Well Summary Well Kalotsa#2 Pad&Old Well Designation Kalotsa#2 is a grass roots well on Kalotsa Pad Planned Completion Type 4-1/2"Production tubing Target Reservoir(s) Beluga/Tyonek Planned Well TD, MD/TVD 8,500 MD/8,150' TVD . PBTD, MD/TVD 8,400' MD/8,050' TVD Surface Location(Governmental) 2231' FSL,452' FWL, Sec 7, T1S, R13W, SM,AK • Surface Location(NAD 27) X=209850.746,Y=2233504.67 Surface Location(NAD 83) Top of Productive Horizon (Governmental) 2401' FNL, 213' FWL, Sec 7, T1S, R13W, SM,AK TPH Location(NAD 27) X=209628.7,Y=2234073.35 TPH Location(NAD 83) BHL(Governmental) 1310' FNL, 243' FEL, Sec 12, T1S,R14W, SM,AK BHL(NAD 27) X=209198.5,Y=2235175.1 BHL(NAD 83) AFE Number 1612640D AFE Drilling Days 4 MOB, 18 DRLG AFE Completion Days AFE Drilling Amount $3,644,715 AFE Completion Amount $400,000 Maximum Anticipated Pressure (Surface) 2853 psi • Maximum Anticipated Pressure (Downhole/Reservoir) 3668 psi Work String 4-1/2" 16.6# S-135 CDS-40 (Saxon Owned String) RKB—GL 144.5'(126.5 + 18) • Ground Elevation 126.5' BOP Equipment 11" 5M Townsend Type 90 Annular BOP 11" 5M Townsend Type 82 Double Ram 11" 5M Townsend Type 82 Single Ram Page 2 Version 0 November, 2016 Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 2.0 Management of Change Information Hilcoip Alaska, LLC Hilcorp ;array Company Changes to Approved Permit to Drill Date: November 09, 2016 Subject: Changes to Approved Permit to Drill for Kalotsa#2 File #: Kalotsa #2 Drilling Program Any modifications to Kalotsa #2 Drilling Program will be documented and approved below. Changes to an approved APD will be communicated and approved by the AOGCC prior to continuing forward with work. Sec Page Date Procedure Change Approved Approved By By Approval: Drilling Manager Date Prepared: Monty M Myers 11.09 2016 Drilling Engineer Date Page 3 Version 0 November, 2016 Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 3.0 Tubular Program: Hole OD (in) ID (in) Drift Conn Wt Grade Conn Burst Collapse Tension Section (in) OD(in) (#/ft) (psi) (psi) (k-lbs) Cond 16" 15.01" 14.822 17" 84 J-55 Weld 2980 1410 - 9-7/8" 7-5/8" 6.875" 6.75" 8.5" 29.7 L-80 BTC 6890 4790 683 6-3/4" 4-1/2" 3.958" 3.833" 5.0" 12.6 L-80 DWC/C HT 8430 7500 288 4.0 Drill Pipe Information: Hole OD(in) ID (in) TJ ID TJ OD Wt Grade Conn Burst Collapse Tension Section (in) (in) (#/ft) (psi) (psi) (k-lbs) All 4-1/2" 3.826 2.6875" 5.25" 16.6 S-135 CDS40 17,693 16,769 468k All casing will be new, PSL 1 (100% mill inspected, 10% inspection upon delivery to TSA in Fairbanks). Page 4 Version 0 November, 2016 I • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp energy Company 5.0 Internal Reporting Requirements 5.1 Fill out daily drilling report and cost report on Wellez. • Report covers operations from 6am to 6am • Click on one of the tabs at the top to save data entered. If you click on one of the tabs to the left of the data entry area—this will not save the data entered, and will navigate to another data entry tab. • Ensure time entry adds up to 24 hours total. • Try to capture any out of scope work as NPT. This helps later on when we pull end of well reports. 5.2 Afternoon Updates • Submit a short operations update each work day to pmazzolini@hilcorp.com, lkeller@hilcorp.com ,mmyers@hilcorp.com and cdinger@hilcorp.com 5.3 Intranet Home Page Morning Update • Submit a short operations update each morning by 7am on the company intranet homepage. On weekend and holidays,ensure to have this update in before 5am. Each rig will be assigned a username to login with. 5.4 EHS Incident Reporting • Notify EHS field coordinator. 1. This could be one of(3) individuals as they rotate around. Know who your EHS field coordinator is at all times, don't wait until an emergency to have to call around and figure it out!!!! a. John Coston: 0: (907)777-6726 C: (907)227-3189 b. Mark Tornai: 0: (907)283-1372 C: (907) 748-3299 c. Thad Eby: 0: (907)777-8317 C: (907)602-5178 2. Spills: Keegan Fleming: 0:907-777-8477 C:907-350-9439 • Notify Drlg Manager 1. Paul Mazzolini: 0: 907-777-8369 C: 907-317-1275 • Submit Hilcorp Incident report to contacts above within 24 hrs 5.5 Casing Tally • Send final"As-Run"Casing tally to mmyers@hilcorp.com and cdinger@hilcorp.com 5.6 Casing and Cmt report • Send casing and cement report for each string of casing to mmyers@hilcorp.com and cdinger@hilcorp.com Page 5 Version 0 November, 2016 • • II Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 6.0 Planned Wellbore Schematic Ninilchik PROPOSED Well Kalotsa##2 PTD: 000-000 API: 50-000-00000-00 CASING DETAIL 16" �'.k" Mud Size Type Wt Grade Conn. ID Top Btm Weight Conductor —Driven 16" to Set 84 X-56 Weld 15.01" Surf 120' N/A Depth 7-5/8" Surf Csg 29.7 L-80 BTC 6.875" i Surf 1,500' 8.8 ppg 4-1/2" Prod Csg 12.6 L-80 DHT/C 3.958" Surf 8,500' 9.5 ppg lio -_:;g iiiiii $.., 1 ,,r /k< //I ) 'q, �r Drilling Info X 1"l7 1 Hole Section Casing MW Workstring 7 ,r' 9-7/8" 7-5/8" 8.8 ppg 4-1/2" Mf 6-3/4" 4 1/2" 9.2-10.5 ppg • 4-1/2" 6_;;4" ,'y JEWELRY DETAIL Hole No. Depth ID OD Item 1 1,300' 3.958" 6.875" Baker Swell Packer (. . I 1 x.„ 41/2" 1 _: c: msd PBTD=SAO';PBT\-D=8.050' TD=8,500':TVD=8.150' Page 6 Version 0 November, 2016 410 Kalotsa#2 Drilling Procedure Rev 0 Hilc_orp Energy Em 7.0 Drilling / Completion Summary Kalotsa#2 is an S-shaped directional grassroots development well to be drilled off of the Kalotsa pad. Reservoir analysis and subsurface mapping has identified an optimal location for infill development of the ' Upper Tyonek sands, as well as an area with little to no production in the Middle and Upper Beluga sands. The base plan is a directional wellbore with a kick off point at 1500' MD. Maximum hole angle will be 24 deg. and TD of the well will be 8500' TMD/8150' TVD, ending with 0 deg inclination left in the hole. Vertical section will be 1794 ft. Drilling operations are expected to commence approximately December 15th 2016. The Saxon Rig# 169 will be used to drill the wellbore then run casing and cement. Surface casing will be run to 1,500 MD / 1,500' TVD and cemented to surface to ensure protection of any shallow freshwater resources.Cement returns to surface will confirm TOC at surface. If cmt returns to surface are not observed,a Temp log will be run between 6— 18 hrs after CIP to determine TOC. Necessary remedial action will then be discussed with AOGCC authorities. All waste & mud generated during drilling and completion operations will be hauled to the Kenai Gas Field • G&I facility for disposal/beneficial reuse depending on test results. General sequence of operations: 11.24.ie 1. MOB Saxon Rig# 169 to well site �--- 2. N/U conductor riser. (No diverter, diverter waiver requested) 3. Drill 9-7/8"hole to 1500' MD. Run and cmt 7-5/8" surface casing. • 4. ND conductor riser,N/U &test 11"x 5M Townsend BOP. 5. Drill 6-3/4"hole section to 8,500' MD. Perform Wiper trip. 6. Perform RFT logging and sidewall cores. .0 7. Make cleanout run 8. POOH laying down drill pipe. 9. Run and cmt 4-1/2"production casing . 10.N/D BOP,N/U temp abandonment cap, RDMO. Reservoir Evaluation Plan: 1. Surface hole: GR+Res LWD. 2. Production Hole: GR+Res+Den/Neu LWD.+RFT+Sidewall Coring • 3. Mud loggers from surface casing point to TD. • Page 7 Version 0 November,2016 • Kalotsa#2 111 Drilling Procedure Rev 0 Hilcorp Evugy Company 8.0 Mandatory Regulatory Compliance / Notifications Regulatory Compliance Ensure that our drilling and completion operations comply with the below AOGCC regulations. If additional clarity or guidance is required on how to comply with a specific regulation, do not hesitate to contact the Anchorage Drilling Team. • BOPs shall be tested at(2) week intervals during the drilling of Kalotsa#2. Ensure to provide AOGCC 24 hrs notice prior to testing BOPs. • The initial test of BOP equipment will be to 250/3500 psi & subsequent tests of the BOP equipment will be to 250/3500 psi for 10/10 min(annular to 50%rated WP, 2500 psi on the high test for initial and subsequent tests). Confirm that these test pressures match those specified on the APD. • If the BOP is used to shut in on the well in a well control situation, we must test all BOP components utilized for well control prior to the next trip into the wellbore. This pressure test will be charted same as the 14 day BOP test. • All AOGCC regulations within 20 AAC 25.033 "Primary well control for drilling: drilling fluid program and drilling fluid system". • All AOGCC regulations within 20 AAC 25.035 "Secondary well control for primary drilling and completion: blowout prevention equipment and diverter requirements" • Ensure both AOGCC approved drilling permit and BLM sundry are posted on the rig floor and in Co Man office. Regulation Variance Requests: • Diverter waiver requested due to the recent drilling of Susan Dionne#2 nearby(4500' away). No issues were experienced while drilling the surface hole. Surface casing for Susan Dionne #2 was set at 1570' TVD. Surface casing is requested to be set at 1,500' TVD on Kalotsa#2.No shallow hydrocarbon zones will be penetrated. e_S for u ` `1 /(21./6 Page 8 Version 0 November, 2016 • • Kalotsa#2 11 Drilling Procedure Rev 0 Hilcorp Energy Company Summary of BOP Equipment and Test Requirements Hole Section Equipment Test Pressure(psi) 9-7/8" • No diverter utilized n/a • 11"x 5M Townsend Annular BOP • 11"x 5M Townsend Double Ram Initial Test:250/3500 o Blind ram in btm cavity (Annular 2500 psi) • Mud cross 6-3/4" • 11"x 5M Townsend Single Ram • 3-1/8"5M Choke Line Subsequent Tests: • 2-1/16"x 5M Kill line 250/3500 • 3-1/8"x 2-1/16"5M Choke manifold (Annular 2500 psi) • Standpipe,floor valves,etc • Primary closing unit: Control Technologies accumulator unit, 5 station, 120 gallon(12 x 11 gal bottles). • Primary closing hydraulic pressure is provided by an electrically driven triplex pump. Emergency pressure is provided by bottled nitrogen. Required AOGCC Notifications: • Well control event(BOPS utilized to shut in the well to control influx of formation fluids). • 24 hours notice prior to spud. • 24 hours notice prior to testing BOPs. • 24 hours notice prior to casing running & cement operations. • Any other notifications required in APD. Additional requirements may be stipulated on APD and Sundry. Regulatory Contact Information: AOGCC Jim Regg/AOGCC Inspector/(0): 907-793-1236/Email:jim.regg@alaska.gov Guy Schwartz/Petroleum Engineer/(0): 907-793-1226/(C): 907-301-4533 /Email: guy.schwartz@alaska.gov Victoria Loepp/Petroleum Engineer/(0): 907-793-1247/Email: victoria.loepp@alaska.gov Primary Contact for Opportunity to witness: AOGCC.Inspectors@alaska.gov Test/Inspection notification standardization format: http://doa.alaska.gov/ogc/forms/TestWitnessNotif.html Notification/Emergency Phone: 907-793-1236(During normal Business Hours) Notification/Emergency Phone: 907-659-2714(Outside normal Business Hours) Page 9 Version 0 November, 2016 • Kalotsa#2 Drilling Procedure Rev 0 HilcC p* 9.0 R/U and Preparatory Work 9.1 Set 16" conductor at+/-120' below ground level. ' 9.2 Dig out and set impermeable cellar. 9.3 Install Seaboard slip-on 16-3/4" 3M"A" section. Ensure to orient wellhead so that tree will line up with flowline later. 9.4 Level pad and ensure enough room for layout of rig footprint and R/U. 9.5 Layout Herculite on pad to extend beyond footprint of rig. 9.6 R/U Saxon Rig# 169, spot service company shacks, spot&R/U company man&toolpusher offices. 9.7 Mud loggers not required on surface hole section. w` 'kr-- 6� 9.8 After rig equipment has been spotted, R/U handi-berm containment system around footprint of rig. 9.9 Mix mud for 9-7/8"hole section. 9.10 Install 5-1/2" liners in mud pumps. • HHF-1000 mud pumps are rated at 3036 psi (85%)/370 gpm(100%) at 120 strokes with 5-1/2" liners. Page 10 Version 0 November, 2016 • • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Emmy Company 10.0 N/U 16" Conductor Riser 10.1 N/U 16" Conductor Riser • Ensure line does not direct flow from trip tank straight down the flowline. Fill up line and flowline should be oriented 90 degrees to each other at approx. the same height. • Ensure flowline outlet installed so that enough slope exists to carry cuttings to the shakers. • Consider adding additional drainage points at the bottom of the conductor riser if deemed necessary. • R/U fill up line to conductor riser. 10.2 Set wearbushing in wellhead. Page 11 Version 0 November, 2016 • • II Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 10.3 Rig Orientation on Kalotsa pad: //// s , a / / ,, i i :////7 // KALOT�%� ;�� SR..�25:,: el . E4-.4?p yp c z / ` + % h F / •i / / § • .t \'''' , ). / / , / S x :+ 9 ,4 ~ \A/ Page 12 Version 0 November,2016 • • 111 Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 11.0 Drill 9-7/8" Hole Section 11.1 P/U 9-7/8" directional drilling assy: • Ensure BHA components have been inspected previously. • Drift and caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. • Ensure TF offset is measured accurately and entered correctly into the MWD software. • Have DD run hydraulics calculations on site to ensure optimum nozzle sizing. Hydraulics calculations and recommended TFA is attached below. • Workstring will be 4.5" 16.6# S-135 CDS40 11.2 9-7/8"BHA (GR and Res are included in below BHA): • COMPONENT DATA .. Item op ° Gauge H Weight,: , Top Cumulative-. Description:.,w; al Number (in) (in) (in) (Ibpi) f ) Length tit) Connection ft 1 9-718' PDC 6.020 2.250 9.875 83.45 P 4-112"REG 0-89 0.89 2 T SperryDrill Lobe 7(8-7.5 stg 7.000 4.952 95.69 B 4-12"IF 30.00 30.89 Stabilizer 11111111111111111 9.625 -�� 3 6-3.4"Integral Blade 93'4" 6.760 2.500 9.750 105.59 B 4-1.2"IF 6.99 37.88 4 6-3`4"Float Sub 6.800 2.375 108.67 B 4-12"IF 3.00 40.88 5 63/4"DM Collar(Directional) • 6.720 3.125 103.40 B 4-12"IF 9.20 50.08 6 6 314"DOR Collar(Gamma) - - 6.710 1.920 97.80 B 4-112"IF 6.50 56.58 7 6 3.4"EWR-P4 Collar(Resistivity) ._ 6.710 2.000 104.30 B 4-1.2"IF 12.00 68.58 8 6 3/4"PWD Collar(Pressure) 6.720 1.905 96.30 B 4-1:2"IF 4.44 73.02 9 6 3+4"HCIM Collar(Processor6.750 1.920 101.70 8 4-12"IF 6.50 79.52 10 6 3./4"TM Collar(Telemetry) 6.550 3.250 103.60 B 4-112"IF 9.90 89.42 11 6.75"NM Flex Collar IIIIIIIIIIIIII 6.450 2.875 89.23 B 4-1.2"IF 30.00 119.42 12 X-Over Sub 4-1/2 IF x CDS 40 6.450 2.625 92.91 B 4 40 CD'' 3.00 122.42 13 3 jts 4-1:2"HWDP 1111111111111111111 4.500 2.813 36.86 93.00 215.42 14 X-Over Sub CDS 40 x 4-1121F 6.300 2.625 87.79 B 4-1i2"IF 3.00 218.42 15 6-1?4"Weatherford Jar 6 270 2.250 91.68 B 4-1!2"IF 30.00 248.42 16 X-Over Sub 4-112 IF x CDS 40 6.230 2.625 85.44 8 4.5"CDS40 3.00 251.42 17 5Its 4-1/2"HWDP 4.500 2.813 36.86 155.00 406.42 406.42 Page 13 Version 0 November, 2016 0 • II Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 11.3 Primary Bit: 9-7/8k' (251rnm) MM65 PRODUCT SPECIFICATIONS Cutter Type SeleetCuttetr IADC Code M323 �" .7 Body Type MATRIXISA* ' .. 'total('Utter('aunt dfi a Cutler Distribution 1201111 1811111 E g Face 6s .-x,) '4'- 00- iIk Gauge 12 �a . Up Drill 6 rt Number of Large Nozzles r, Number of Medium Nozzles a eir Number of Small Nozzles it Number of Micro Nozzles 0 , * µ Number of Puts(Size) it a a Number of Replaceable Ports(Size) 11 Junk Slot Area I in) 16.71 Numi tlrred Fate Volume 45.49' 3 API Connection 4-1[`2 REG.PIN 1 r" r, Recommended Make-Up Torque* 12,461-17,766 Ft•lbs. 1,4 Nominal Dimensions•* t* Make-Up Face to Nose 10.81 in-275 mm Gaulle length 2.5 in-04 nen Sleeve Length 0 in-0 tern Slu isk Diameter 6 in•152 um Break Out Plate(M1at,tl+Legacy4) 181054144040 Approximate Shipping Weight 250Lbs.-113Kg. SPECIAL FEATURES Up-Drill Cutters on Gage Pads.1 I6'"Relieved Gage Material 4771827 "Bit specific reconmttendedmakeup torque is a function oldie bit LD.and actual bit stab O.D.utilized as specified in API RP'7G Section A.8.2. **Design dimensions are nominal and may vara slightly on manufactured pre toms.Hallibunon Drill Bits and Services models.are mntinu only res.eaed and refined Product specifications may change without nntice. 0 2013 Halliburton.All rights reserved_Sales of Halliburton products and services will be in accord solely with the terms and conditions contained in the contract between Halliburton and the customer that is applicable to the sale. www.halliburtan_crim Page 14 Version 0 November, 2016 • • Kalotsa#2 Drilling Procedure Rev 0 Hilcor 11.4 4-1/2" Workstring& HWDP will come from Saxon. Jars will come from Weatherford. 11.5 Begin drilling out from 16"conductor at reduced flow rates to avoid broaching the conductor. 11.6 Drill 9-7/8"hole section to 1,500' MD/ 1,500' TVD. Confirm this setting depth with the geologist and Drilling Engineer while drilling the well. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Pump at 500 - 550 gpm. Ensure shaker screens are set up to handle this flowrate. • Utilize Inlet experience to drill through coal seams efficiently. Coal seam log will be provided by Hilcorp Geo team. • Keep swab and surge pressures low when tripping. • Make wiper trips every 500' or every couple days unless hole conditions dictate otherwise. • Ensure shale shakers are functioning properly. Check for holes in screens on connections. • Adjust MW as necessary to maintain hole stability. • TD the hole section in a good shale between 1400' MD and 1600' MD. • Take MWD surveys every stand drilled(60' intervals). 11.7 9-7/8"hole mud program summary: Weighting material to be used for the hole section will be barite. Additional barite will be on location to weight up the active system(1)ppg above highest anticipated MW. We will start with a simple gel+ FW spud mud at 8.8 ppg. Pason PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller's console, Co Man office, Toolpusher office, and mud loggers office. System Type: 8.8—9.5 ppg Pre-Hydrated Aquagel/freshwater d mud Properties: Depths Density Viscosity Plastic Viscosity Yield Point API FL pH 120-1500' 8.8-9.5 85-150 20-40 25-45 <10 8.5-9.0 Page 15 Version 0 November, 2016 s • Kalotsa#2 14Drilling Procedure Rev 0 Hilcorp Entries'COY System Formulation: Aquagel + FW spud mud Product Concentration FRESH WATER 0.905 bbl SODA ASH 0.5 ppb AQUAGEL 12-15 ppb CAUSTIC SODA 0.1 ppb (9 pH) BARAZAN D+ as needed BAROID 41 as required for weight PAC-L/DEXTRID LT if required for<12 FL ALDACIDE G 0.1 ppb X-TEND II 0.02 ppb 11.8 At TD; pump sweeps, CBU, and pull a wiper trip back to the 16" conductor shoe. 11.9 TOH with the drilling assy, handle BHA as appropriate. 11.10 Perform QUAD combo e-line logging run in 9-7/8"hole section. Page 16 Version 0 November, 2016 • • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 12.0 Run 7-5/8" Surface Casing (5wr 12.1 R/U and pull wearbushing. 12.2 R/U Weatherford 7-5/8" casing running equipment. • Ensure 7-5/8" BTC x CDS 40 XO on rig floor and M/U to FOSV. • R/U fill-up line to fill casing while running. • Ensure all casing has been drifted on the location prior to running. • Be sure to count the total # of joints on the location before running. • Keep hole covered while R/U casing tools. • Record OD's, ID's, lengths, S/N's of all components w/vendor&model info. 12.3 P/U shoe joint, visually verify no debris inside joint. 12.4 Continue M/U&thread locking shoe track assy consisting of: • (1) Shoe joint w/float shoe bucked on (thread locked). • (1) Joint with coupling thread locked. • (1) Joint with float collar bucked on pin end &thread locked. • Install (2) centralizers on shoe joint over a stop collar. 10' from each end. • Install (1) centralizer, mid tube on thread locked joint and on FC joint. • Ensure proper operation of float equipment. 12.5 Continue running 7-5/8" surface casing • Fill casing while running using fill up line on rig floor. • Use "API Modified"thread compound. Dope pin end only w/paint brush. • M/U connections to the base of the triangle stamped on the pin end. Note M/U torque values required to achieve this position. • After making up several connections, use the torque required to M/U to base of triangle as the M/U torque and continue running string. • Install (1) centralizer every other joint to 300'. Do not run any centralizers above 300' in the event a top out job is needed. • Utilize a collar clamp until weight is sufficient to keep slips set properly. 7-5/8" BTC Estimated M/U Torque Casing OD Est Torque to Reach Triangle Base 7-5/8" 7,630 ft-lbs Page 17 Version 0 November, 2016 • a Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company Casing and Tubing Performance Data PIPE BODY DATA GEOMETRY Outside Diameter 7.625 in Wall Thickness 0.375 in API Drift Diameter 6.750 in Nominal Weight 29.70 lbs/ft Nominal ID 6.875 in Alternative Drift Diameter n.a. Plain End Weight 29.06 lbs/ft Nominal cross section 8.541 in PERFORMANCE Steel Grade 180 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Tension Yield 683,000 in Internal Pressure Yield 6,890 psi Collapse Pressure 4,790 psi Available Seamless Yes Available Welded No CONNECTION DATA TYPE: BTC GEOMETRY Coupling Reg OD 8.500 in Threads per in 5 Thread turns make up 1 PERFORMANCE Steel Grade 180 Coupling Min Yield 80,000 psi Coupling Min Ultimate 95,000 psi Joint Strength 721,000 lbs Internal Pressure Resistance 6,890 psi 12.6 Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 12.7 Slow in and out of slips. 12.8 P/U casing hanger joint and M/U to string. Casing hanger joint will come out to the rig with the landing joint already M/U. Position the shoe as close to TD as possible. Strap the landing joint while it is on the deck and mark the joint at (1) ft intervals to use as a reference when landing the hanger. 12.9 Lower string and land out in wellhead. Confirm measurements indicate the hanger has correctly landed out in the wellhead profile. 12.10 R/U circulating equipment and circulate the greater of 1 x casing capacity or 1 x OH volume. Elevate the hanger offseat to avoid plugging the flutes. Stage up pump slowly and monitor losses closely while circulating. 12.11 After circulating, lower string and land hanger in wellhead again. Page 18 Version 0 November, 2016 • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 13.0 Cement 7-5/8" Surface Casing 13.1 Hold a pre job safety meeting over the upcoming cmt operations. Make room in pits for volume gained during cement job. Ensure adequate cement displacement volume available as well. Ensure mud& water can be delivered to the cmt unit at acceptable rates. • Pump 20 bbls of freshwater through all of Schlumberger's equipment, taking returns to cuttings bin, prior to pumping any fluid downhole • How to handle cmt returns at surface. • Which pump will be utilized for displacement, and how fluid will be fed to displacement pump. • Positions and expectations of personnel involved with the cmt operation. 13.2 Document efficiency of all possible displacement pumps prior to cement job 13.3 R/U cmt head(if not already done so). Ensure top and bottom plugs have been loaded correctly. 13.4 Pump 5 bbls 10 ppg spacer. Test surface cmt lines. 13.5 Pump remaining 30 bbls of 10 ppg spacer. 13.6 Drop bottom plug. Mix and pump cmt per below recipe. 13.7 Cement volume based on annular volume+ 50% open hole excess. Job will consist of lead& tail, TOC brought to surface. Estimated Total Cement Volume: Section: Calculation: Vol(BBLS) Vol(ft3) 12.0 ppg LEAD: 120' x .0932 bpf= 11.2 63 16" Conductor x 7-5/8" casing annulus: 12.0 ppg LEAD: (1.-566' — 120')x .0382 bpf x 79 444 9-7/8" OH x 7-5/8" Casing / '"'`" 1.5 = G,,,�j t' ( 0 annulus: / s Total LEAD: 90.2 . 506.4 ft3 15.4 ppg TAIL: (1500'-1000') x .0382 bpf x .7 161 9-7/8" OH x 7-5/8" Casing 1.5 = annulus: 15.4 ppg TAIL: 80 x .04591 bpf = 3.7 21 7-5/8" Shoe track: Total TAIL: 34.2 bbl 182 ft3 TVA-- r y e5 �. Page 19 Version 0 November, 2016 i i Kalotsa#2 Drilling Procedure Rev 0 Hilcor Enemy C Cement Slurry Design: Lead Slurry (1000' MD to surface) Tail Slurry (1000' to 1500' MD) System Extended Conventional Density 12 lb/gal 15.4 lb/gal Yield 2.46 ft3/sk ✓ 1.22 ft3/sk Mixed Water 14.349 gal/sk 5.507 gal/sk Mixed Fluid 14.469 gal/sk 5.507 gal/sk Code Description Concentration Code Description Concentration G Cement 94#/sk A Cement 94#/sk D110 Retarder 0.15 gal/sk BWOC D046 Anti Foam 0.2% BWOC Additives D046 Anti Foam 0.2% BWOC D065 Dispersant 0.4% BWOC D079 Extender 2.0% BWOC S002 CaCl2 0.35%BWOC D020 Extender 3.0% BWOC D177 CaCl2 0.1% BWOC 13.8 Attempt to reciprocate casing during cement pumping if hole conditions allow. Keep the hanger elevated above the wellhead while working. If the hole gets "sticky", land the hanger on seat and continue with the cement job. 13.9 After pumping cement, drop top plug and displace cement with spud mud. 13.10 Ensure cement unit is used to displace cmt so that volume tracking is more accurate. 13.11 Displacement calculation: 14- 1500'- y1500'- 80' = 1420' x .04591 bpf= 65 bbls © — 13.12 Monitor returns closely while displacing cement. Adjust pump rate if necessary. If hanger flutes become plugged, open wellhead side outlet in cellar and take returns to cellar. Be prepared to pump out fluid from cellar. Have some sx of sugar available to retard setting of cement. Page 20 Version 0 November, 2016 S 41/ Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 13.13 Do not overdisplace by more than 1/2 shoe track volume. Total volume in shoe track is 3.7 bbls. • Be prepared for cement returns to surface. If cmt returns are not observed to surface, be prepared to run a temp log between 12— 18 hours after CIP. • Be prepared with small OD top out tubing in the event a top out job is required. The AOGCC will require us to run steel pipe through the hanger flutes. The ID of the flutes is 1.5". 13.14 Bump the plug with 500 psi over displacement pressure. Bleed off pressure and confirm floats are holding. If floats do not hold, pressure up string to final circulating pressure and hold until cement is set. Monitor pressure build up and do not let it exceed 500 psi above final circulating pressure if pressure must be held. 13.15 R/D cement equipment. Flush out wellhead with FW. 13.16 Back out and L/D landing joint. Flush out wellhead with FW. 13.17 M/U pack-off running tool and pack-off to bottom of Landing joint. Set casing hanger packoff. Run in lock downs and inject plastic packing element. 13.18 Lay down landing joint and pack-off running tool. Ensure to report the following on wellez: • Pre flush type,volume(bbls)&weight(ppg) • Cement slurry type, lead or tail, volume &weight • Pump rate while mixing,bpm, note any shutdown during mixing operations with a duration • Pump rate while displacing,note whether displacement by pump truck or mud pumps,weight&type of displacing fluid • Note if casing is reciprocated or rotated during the job • Calculated volume of displacement, actual displacement volume,whether plug bumped&bump pressure, do floats hold • Percent mud returns during job, if intermittent note timing during pumping of job. Final circulating pressure • Note if pre flush or cement returns at surface&volume • Note time cement in place • Note calculated top of cement • Add any comments which would describe the success or problems during the cement job Send final "As-Run" casing tally & casing and cement report to cdinger(a,hilcorp.com and mmyers@hilcorp.com. This will be included with the EOW documentation that goes to the AOGCC. Page 21 Version 0 November, 2016 • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy company 14.0 BOP N/U and Test 14.1 N/U Seaboard multi-bowl wellhead assy. Install 7-5/8"packoff P-seals. Test to 3000 psi. 14.2 N/U 11"x 5M Townsend BOP as follows: • BOP configuration from Top down: 11"x 5M Townsend Type 90 annular BOP/11"x 5M Townsend Model 82 double ram/11"x 5M mud cross/11"x 5M Townsend Type 82 single ram • Double ram should be dressed with 2-7/8 x 5" VBRs in top cavity, blind ram in btm cavity. • Single ram should be dressed with 2-7/8 x 5" VBRs • N/U bell nipple, install flowline. • Install (2) manual valves & a check valve on kill side of mud cross. • Install (1) manual valve on choke side of mud cross. Install an HCR outside of the manual valve. 14.3 Run 4-1/2"BOP test assy, land out test plug (if not installed previously). • Test BOP to 250/3500 psi for 5/10 min. Test annular to 250/2500 psi for 5/10 min. me • Ensure to leave "B" section side outlet valves open during BOP testing so pressure does not build up beneath the test plug. 14.4 R/D BOP test assy. 14.5 Dump and clean mud pits, send spud mud to G&I pad for injection. 14.6 Mix 9.0 ppg 6%KCL PHPA mud system. 14.7 R/U mud loggers for production hole section. 14.8 Rack back as much 4-1/2" DP in derrick as possible to be used while drilling the hole section. Page 22 Version 0 November,2016 Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 15.0 Drill 6-3/4" Hole Section 15.1 Pull test plug, run and set wear bushing 15.2 Ensure BHA components have been inspected previously. 15.3 Drift and caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. 15.4 TIH, Conduct shallow hole test of MWD and confirm Gamma Ray and Resistivity LWD • functioning properly. 15.5 Ensure TF offset is measured accurately and entered correctly into the MWD software. 15.6 Have DD run hydraulics calculations on site to ensure optimum nozzle sizing. Hydraulics calculations and recommended TFA is attached below. 15.7 Workstring will be 4.5" 16.6# S-135 CDS40. Ensure to have enough 4-1/2"DP in derrick to drill the entire open hole section without having to pick up pipe from the pipeshed. Version 0 November 2016 Page 23 , III Kalotsa#2 II FEL Drilling Procedure Rev 0 Hilcorp , Energy Company 15.8 6-3/4" BHA: Item, D00 )O Gauge Weight ' Length Cumulative '%criptian Serial Number (in) } (in) (ibpF) Connection ift) Length (ft) MI HOBS EM65D PDC bit 4.500 1.563 6.750 47.67' a 0.75 0.75 ® 5'SperryDrill Lobe G'-0 0 s-c 5.000 3.120 48.00 8 3-112"IF 24.00 24.75 _ Stabilizer b.`.siill !1elm--- ® 0 2. Float Sub 4.75251) 2.25 27.00 ME Welded Blade Stabilize,• 4.840 2.000 6 500 52 00 9 3-1.,2"IF 5.00 32.00 E. 4 3.4'DM Collar 4.730 1.253 47 00 8 3-1,2"IF 9.20 41.20 ® 4 314'Slim Phase 4 Calla- 4.750 1.250 48 20 3 3-1?2"IF 24.50 65.70 ® Inline Stabilizer ill_Si 4.740 1.920 6.00U 50 27 3 3-1i2"IF 3.60 69.20 ME 4 314"P4.1)Collar • 4.750 1.250 5.625 45 50 8 3.11 'IF 14.01) 83.20 MESlot;++,ter 5-25 ® 4 3,4'CTN Collar • 4.750 1.250 50 50 8 3-1,x7"IF 11.00 94.20 10 4 314"PWD 4.750 1.250 47 90 2 3-112"IF 9.20 103.40 11111 4 3,4'TM HOC I:Pulaer'i 4.750 1.25{) 4U 90 8 3-1,2"IF 11.00 114.40 IIIIIIIIIIIIII=MIMIMIIIIIIIIIIIIIIIIIII4.750 1.250 45 76 13 NC 3H 20.42 146 82 ® 4 75' Flux Collar 4 750 2.250 46 84 9 3-142"IF 31 00 171 62 ® 4 75"Flex Collar 4 750 2.250 46 84 8 3-1:2"IF 31.00 202.82 ® X-0 3-1,2'IF Pin X 4-1.2"CDS 40 Box ..250 2.250 GO 22 B 4.5'CDS-40 2.75 205.57 ® 6 Ja.nts d-1:2'HtVDP 4.600 2.750 41 00 185.00 390.57 ® X041x2'COS 40Pin X'31.2'ItInA IIIIIIIIIIIII 5300 ®- hi h... 133.1/2.'IIt 75 393:12 15 4.750 2.250 46 64 IIISIEll 30 00 ® )(-O 3-1:2"IF PIr X 4-1.'2"CDS-40 Box 5.300 2.753 54 94 B 4.5'CDS-40 2.75 426.07 20 13 Joints 4-1,2'HL4'DP 4.504 2.750 41.00 - 400.00 826.07 Tot 826.07 BIT DATA Bit Number Nozzles : WO ad Size (In) : 6.7'.i0 TFA (In2) : 0.4602 Manufacturer : Ht)IIS Dull Grade In - Model : r.1.11356 Dull Grade Out Serial Number Page 24 Version 0 November, 2016 • • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 15.9 Primary Bit: 6-3/4" (171 mm) EM65D PRODUCT SPECIFICATIONS Cutter Type X3-Extreme Drilling - !ADC Cale M32.3 Body Type MATRIX rye , 4 Total Cutter('Dunt t� Cutter Distribution latllBl Jima 4 Fane: s Gauge 11 n Up Drill S tI Number of Large Nozzles ti NutnbexofMedium Nozzles Number of Small Nozzles 6 * r Number of Micro Nozzles (t , igpv er Number of Ports(Sine) Vtit a Number of Replaceable Ports(Size) 4 Junk Sloe Area(sq in) 8.68 t` Normalised Face Volume 34.69% a� API Connection 3-112 REG.PIN i 2# Ree mmeaded Make-Up Torque* 3,173—7.665 Fen's. Nominal Dimensions•• Make-Up Face to Nose 9.42 in-239 awn Hauge Length 2 in-31 nun Sleeve Length 0 in-0 min Shank Diameter 4S in-114 mm Break Out Plate(Mat,AuLegacy9) 1111953.444311 Approximate Shipping Weight 90Lbs_-41Kg. SPECIAL FEATURES Up-Drill Cutters on Gage Path.1116"Stepped Gags.Optimized Dual Row-"D"Feature Material#761302 'Bit specific rccummendcd make-up torque is a function of the bit I.D.and actual bit sub O.D.utilized et r}sccified in API aria Section A.E.i. **Deur dimensions arc nominal and may vary slightly an manufactured product.Hallibusmn Drill Bin and Services molls are continuaady rerotewed and refined. Product sped ficsticmi may change.wltbout 11a41ee. 0 2013 Hal liburlon.All rights reserved..Saks of Halliburton products and services will be in accord solely with the terms and conditions contained in the contract between Halliburton and the customer that is applicable to the sale. www.halliburton.com Page 25 Version 0 November, 2016 f` • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 15.10 6-3/4"hole section mud program summary: Weighting material to be used for the hole section will be salt and calcium carbonate. Additional calcium carbonate will be on location to weight up the active system (1) ppg above highest anticipated MW. Pason PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller's console, Co Man office, Toolpusher office, and mud loggers office. System Type: 9.0 ppg 6%KCL PHPA fresh water based drilling fluid. Properties: MD /-Weight Viscosity Plastic Yield Point pH HPHT / Weight ) Viscosity 1,500'-8,500', 9.0—> 40-53 15-25 15-25 8.5-9.5 < 11.0 System Formulation: 6% KCL EZ Mud DP Product Concentration Water 0.905 bbl KC1 22 ppb (29 K chlorides) Caustic 0.2 ppb (9 pH) BARAZAN D+ 1.25 ppb (as required 18 YP) EZ MUD DP 0.75 ppb(initially 0.25 ppb) DEXTRID LT 1-2 ppb PAC-L 1 ppb BARACARB 5/25/50 15-20 ppb(5 ppb of each) BAROID 41 as required for a 9.0—10.0 ppg ALDACIDE G 0.1 ppb BARACOR 700 1 ppb BARASCAV D 0.5 ppb (maintain per dilution rate) 15.11 TIH w/6-3/4" directional assy to TOC. Shallow test MWD and LWD on trip in. Note depth TOC tagged on AM report. oxiSii5.12 R/U and test casin to 3500 si/ 30 min Ensure to record volume/pressure and plot on FIT graph. AOGCC requirement is 50% of burst. 7-5/8" burst is 6890 psi/2 =3445 psi. 15.13 Drill out shoe track and 20' of new formation. 15.14 CBU and condition mud for FIT. ftp `3. PPS ( ' � Page 26 Version 0 November, 2016 • Kalotsa#2 Drilling Procedure ,��, Rev 0 Hilcorp Energy Company I S 15.15 Conduct FIT to 1 . ppg EMW. Note: Offset field test data predicts frac gradient at the 7-5/8"shoe to be between 11 - 13 ppg EMW. A 12.5 ppg FIT results in a 3 ppg kick margin while drilling with the planned MW of 9.5 ppg. Kick tolerance = (12.5-9.5)X(1500/8150) = 0.55 15.16 Drill 6-3/4" hole section to 8,500' MD/ 8,150' TVD • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Pump at 225 - 300 gpm. Ensure shaker screens are set up to handle this flowrate. • Keep swab and surge pressures low when tripping. • Make wiper trips every 500' unless hole conditions dictate otherwise. • Ensure shale shakers are functioning properly. Check for holes in screens on connections. • Adjust MW as necessary to maintain hole stability. Keep HTHP fluid loss < 10. • Take MWD surveys every other stand drilled. Surveys can be taken more frequently if deemed necessary. • Take (3) sets of formation samples every 20'. 15.17 At TD; pump sweeps, CBU, and pull a wiper trip back to the 7-5/8" shoe. 15.18 TOH with the drilling assy, standing back drill pipe. 15.19 LD BHA, RU E-line to perform RFT logging and sidewall coring. . 15.20 RD loggers, PU 6-3/4"clean out BHA, and TIH to TD. 15.21 Pump sweep, CBU and condition mud for casing run. 15.22 POOH LDDP and BHA 15.23 Install 4-1/2"pipe rams in BOP stack and RU and test. Page 27 Version 0 November, 2016 Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 16.0 Run 4-1/2" Production Casing 16.1. R/U Weatherford 4-1/2" casing running equipment. • Ensure 4-1/2" DWC/C HT x CDS 40 crossover on rig floor and M/U to FOSV. • R/U fill up line to fill casing while running. • Ensure all casing has been drifted prior to running. • Be sure to count the total # of joints before running. • Keep hole covered while R/U casing tools. • Record OD's, ID's, lengths, S/N's of all components w/vendor& model info. 16.2. P/U shoe joint, visually verify no debris inside joint. 16.3. Continue M/U&thread locking shoe track assy consisting of: • (1) Shoe joint w/ shoe bucked on&threadlocked(coupling also thread locked). • (1) Joint with float collar bucked on pin end&threadlocked (coupling also thread locked). • Solid body centralizers will be pre-installed on shoe joint an FC joint. • Leave centralizers free floating so that they can slide up and down the joint. • Ensure proper operation of float shoe and float collar. • Utilize a collar clamp until weight is sufficient to keep slips set properly 16.4. Continue running 4-1/2"production casing • Fill casing while running using fill up line on rig floor. • Use "API Modified"thread compound. Dope pin end only w/paint brush. • Install solid body centralizers on every joint across zones of interest, TBD after LWD. • Install solid body centralizers on every other joint to 7-5/8" shoe. Leave the centralizers free floating. • Pick up swell packer and place in string at approximately 1300'. 16.5. Continue running 4-1/2" production casing 4-1/2" DWC/C HT M/U torques Casing OD Minimum Maximum Yield Torque 4-1/2" 5,800 ft-lbs 6,500 ft-lbs 7,200 ft-lbs Page 28 Version 0 November, 2016 i • 111 Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company Technical Specifications Connection Type: Size(O.D.): Weight(Wall): Grade: DWCIC Tubing 4-1/2 in 12.60 lb/ft(0.271 in) L-80 standard Material L-80 Grade 80,000 Minimum Yield Strength (psi) U S A 95.000 Minimum Ultimate Strength (psi) VAM USA 44241.Sam Houston Pkwy.Suite 150 Pipe Dimensions Houston,TX 77041 713-47 4.500 Nominal Pipe Body O.D. (in) Fax:n713-479-323444 3.958 Nominal Pipe Body I.D.(in) E-mail:VAMUSAsalesOvam-usa.com 0.271 Nominal Wall Thickness (in) 12.60 Nominal Weight(lbs/ft) 12.25 Plain End Weight (Ibsfft) ��, 3.600 Nominal Pipe Body Area (sq in) Pipe Body Performance Properties 288,000 Minimum Pipe Body Yield Strength (lbs) 7,500 Minimum Collapse Pressure (psi) 8,430 Minimum Internal Yield Pressure(psi) 7,700 Hydrostatic Test Pressure (psi) Connection Dimensions 5.000 Connection O.D. (in) 3.958 Connection I.D. (in) 3.833 Connection Drift Diameter (in) 3.94 Make-up Loss(in) 3.600 Critical Area (sq in) 100.0 Joint Efficiency(%) Connection Performance Properties 288,000 Joint Strength (lbs) 14,290 Reference String Length (ft) 1.6 Design Factor 314,000 API Joint Strength (lbs) 288,000 Compression Rating (lbs) 7,500 API Collapse Pressure Rating (psi) 8.430 API Internal Pressure Resistance (psi) 81.5 Maximum Uniaxial Bend Rating [degrees/100 ft] Appoximated Field End Torque Values 5,800 Minimum Final Torque (ft-lbs) 6,500 Maximum Final Torque (ft-lbs) 7,200 Connection Yield Torque (ft-lbs) Page 29 Version 0 November, 2016 • • Kalotsa#2 Drilling Procedure Rev 0 & Comp. 16.6. Run in hole w/4-1/2" casing to the 7-5/8" casing shoe. 16.7. Fill the casing with fill up line and break circulation every 1,000 feet to the shoe or as the hole dictates. 16.8. Obtain slack off weight, PU weight, rotating weight and torque of the casing. 16.9. Circulate 2X bottoms up at shoe, ease casing thru shoe. 16.10. Continue to RIH w/casing no faster than 1 jt./minute. Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 16.11. Set casing slowly in and out of slips. X1,,6.12. PU 4-1/2"X 6-3/4" swell packer to be placed at approximately 1300'..Swell packer should have f 5✓ 10' handling pups installed on both ends with bow spring centralizers on pups. 16.13. Swedge up and wash last 2 joints to bottom. P/U 5' off bottom. Note slack-off and pick-up weights. 16.14. Stage pump rates up slowly to circulating rate. Circ and condition mud with casing on bottom. Circulate 2X bottoms up or until pressures stabilize and mud properties are correct and the shakers are clean. Reduce the low end rheology of the drilling fluid by adding water and thinners. 16.15. Reciprocate string if hole conditions allow. Circ until hole and mud is in good condition for cementing. Page 30 Version 0 November, 2016 • O Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 17.0 Cement 4-1/2" Production Casing 17.1. Hold a pre job safety meeting over the upcoming cmt operations. Make room in pits for volume gained during cement job. Ensure adequate cement displacement volume available as well. Ensure mud& water can be delivered to the cmt unit at acceptable rates. • Pump 20 bbls of freshwater through all of Schlumberger's equipment, taking returns to cuttings bin, prior to pumping any fluid downhole • How to handle cmt returns at surface, regardless of how unlikely it is that this should occur. • Which pump will be utilized for displacement, and how fluid will be fed to displacement pump. • Positions and expectations of personnel involved with the cmt operation. • Document efficiency of all possible displacement pumps prior to cement job. 17.2. Attempt to reciprocate the casing during cmt operations until hole gets sticky 17.3. Pump 5 bbls of 12.5 ppg Mud Push spacer. 17.4. Test surface cmt lines to 4500 psi. 17.5. Pump remaining 30 bbls 12.5 ppg Mud Push spacer. 17.6. Mix and pump lead and tail cement per below recipe. Ensure cement is pumped at designed weight. Job is designed to pump 35% OH excess. /0 019,,,,0 P,y�3 .1 9 Section: Calculation: (VolS) Vol(ft3) 7-5/8"x 4-1/2" Csg Overlap: 500' x 0.026= 13 73 6-3/4" OH x 4-1/2" Casing: (8500— 1500)x 0.025 x .35 240 1345 Shoe Track: 80' x 0.019 = 1.5 8.5 Total Volume : 236.3 1327 1 0Ss7 s� Page 31 Version 0 November, 2016 • • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Enemy Company 17.7. Drop wiper plug and displace with 3%KC1. 17.8. If hole conditions allow—continue reciprocating casing throughout displacement. This will ensure a high quality cement job with 100% coverage around the pipe. 17.9. If elevated displacement pressures are encountered,position casing at setting depth and cease reciprocation. Monitor returns &pressure closely while circulating. Notify Drilling Foreman immediately of any changes. 17.10. Bump the plug and pressure up to 500 psi over final lift pressure. Hold pressure for 3 minutes. 17.11. Do not overdisplace by more than %2 shoe track. Shoe track volume is 1.5 bbls. 17.12. Bleed pressure to zero to check float equipment. Watch for flow.Note amount of fluid returned after bumping plug and releasing pressure. 17.13. RD cementers and flush equipment. Cks/Jigs 17.14. WOC minimum of 12 hours,test casing to 3500 psi and chart for 30 minutes. rr,X Ensure to report the following on wellez: • Pre flush type,volume(bbls)&weight(ppg) • Cement slurry type, lead or tail,volume&weight • Pump rate while mixing, bpm,note any shutdown during mixing operations with a duration • Pump rate while displacing,note whether displacement by pump truck or mud pumps,weight&type of displacing fluid • Note if casing is reciprocated or rotated during the job • Calculated volume of displacement, actual displacement volume,whether plug bumped&bump pressure,do floats hold • Percent mud returns during job, if intermittent note timing during pumping of job. Final circulating pressure • Note if pre flush or cement returns at surface&volume • Note time cement in place • Note calculated top of cement • Add any comments which would describe the success or problems during the cement job Send final "As-Run" casing tally & casing and cement report to mmyersna,hilcorp.com. This will be included with the EOW documentation that goes to the AOGCC. Page 32 Version 0 November, 2016 • • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp 18.0 RDMO 18.1. Install BPV in wellhead 18.2. N/D BOPE 18.3. N/U temp abandonment cap 18.4. RDMO Saxon Rig#169 ue,v-c-f7 .� MIT- 1' z. 5' irb „AZ Si/Lk:4? r Page 33 Version 0 November, 2016 • • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 19.0 BOP Schematic —F- lil iii lei III 1111 Ili Iii III I 3.5" -16 a Model 60111 11"-5004 tell iftl tft1 tfil ' 4 `Mal• L L3 3.00' Mil O3 ''T-3 Energy I 4 III Model 7082 �'�. 11"-5000 II!.-P - Of III III III III 1111 .'OD' I, RAIli, . , • • . 41. : ..0,, I� tll.lil.lil ill.11l . 3 - ' -- 1/1,_.5M K.II vid€ 41081"."5,1/8 SM Choke Side _EmilT-3 E 1 11 r, 0 Mo7682 - 1 it0 11"-"-5000 1 r 1!1 Irl III! ISI 1.1 Grade illi Ill Iill III Si r.= �! 1ol --I ,�Ir ImmiliE In ati •L I . ,,,r r Page 34 Version 0 November, 2016 0 • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 20.0 Wellhead Schematic Ninilchik Unit Casing hanger,CW,11 x 4 X Kalotsa 61 and 2 DWC/C box btm x 6.125"RH 16x 75/8 x4 r5 stub acme box top,w/7 S/8 od neck,4 type H 8PV profile,DO NI material SHIA.Otis,41/16 SM FE e 6.5 Otis quick union top Mi •. 111110.11111111111 1111111.1111111 14.111 MMI Valve,Swab,WKM-M 41/16 SM FE.HWO, EE trim .1‘3,/ �Ci Valve,Wing,WKM-M, !! • 31/8Sail FE,HWO, so lal EE trim i Ii :Ii_. LILI Valve,Upper master, 6( -V:. WKM-M, 4 1/16 5M FE,HWO,RE trim - U 16'11I 161141 16 161 1611161 Valve,Master,WKM-M, 41/16 SM FE,HWO, ,11' -;e EE trim L K /111 111111 1s k !> —1 __, 1 Tubing head 41 Cactus C-2 - _ HPS,135/8 SM x11 SM,w; 1/ L - •iia. 2-211/16 SM 550 1 r $ 0II } ��11 `� �{: + : . . . ,_.! Starting head,Cactus C-291, 41.10 V AI I 138 135/85Mx16SOW,w/2-2 - I. 1/16 5M 550 Ill ilili 1 04 o 11 l• • • le 11 I. 16" 75/8' Page 35 Version 0 November, 2016 ! • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp EneW'Company 21.0 Days Vs Depth Days Vs Depth 0 - — Kalotsa#2 1000 KBU31-06X r 2000 3000 4000 F .."\ILL\ t M a. r G 5000 d 1 3 i 6000 --- 7000 8000 9000 10000 _ 0 5 10 15 20 25 30 Days Page 36 Version 0 November,2016 • • II Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 22.0 Geo-Prog GEOLOGICAL PROGNOSIS WELL NAME: Kalotsa 2 FIELD: Ninilchik(Pax-Dionne Area) SURFACE LOCATION X=209,850.75 BHL: X=209,198.50 AFE: (PROPOSED): Y=2,233,504.67 Y=2,235,175.10 PAD ID Kalotsa COORD REF.SYSTEM NAD27 AK4 True North EST.KB: 144.5 PROPOSED TD: 8,500'MD • 8,150'TVD Rig RKB: 18 Saxon 169 API. TBD EST.GL: 126.5 Drill an 8500 MD grass roots well at Ninilchik Field that will target reserves in T65,and T83,T90 sands.Secondary targets include the Objective: Beluga and Tyonek T3,T6,and T140 sands. ANTICIPATED FORMATION TOPS 8 GEOHAZARDS EXPECTED FLUID MD TVD(FT) SUBSEA DEPTH Est Pressure EMW Grad Beluga 120 gas 3528 3,409 (3264) 1534 8.7 . 0.45 Beluga 135 gas 3708 3,446 (3428) 1551 8.7 0.45 Tyonek 7X gas 3801 3,640 (3513) 1638 8.7 0.45 Tyonek T3 gas 4028 3,721 (3721) 1674 8.7 0.45 Tyonek T6 gas 4307 3,976 (3976) 1789 8.7 0.45 Tyonek 65 gas 6809 6,315 (6315) 2842 8.7 0.45 Tyonek 83 gas 7094 6,600' (6600) 2970 8.7 0.45 Tyonek 90 gas 7272 6,778 (6778) 3050 8.7 0.45 Tyonek 110 gas 7562 7,068 (7068) 3181 8.7 0.45 Tyonek 140 pas7848 7,354 (7354) 3309 8.7 0.45 =Reservoir Objectives =Possible Geo Hazards DATA COLLECTION REQUIREMENTS: Mud Logging: Surface Csg.To TD,samples collected at 20'intervals LWD Data: LWD Triple Combo from condutorto surface casing depth AND surface casing to TD • Other Log Data: Wireline RFT and sidewall rotarycore • COMPLETION TYPE NOTES Chance of Success&Anticipated Rate 95% ARTIFICIAL LIFT EQUIPMENT OD 16" 136' PROSED PIPE SET DEPTHS 7-5/8" 1500 4-1/2" TD TUBING SIZE This well is to be drilled from the Kalotsa pad and will be drilled to the north.We would like to set surace casing so as , to log the interval from conductor(-150')to the surface casing depth.This interval has not been logged before.We OTHER COMMENTS would also like to get pressure data and sidewall cores in the production hole section. • NO INFORMATION CONCERNING THIS WELL IS TO BE RELEASED TO ANYONE EXCEPT THE EMPLOYEES OF HILCORP OR THEIR PARTNERS. Page 37 Version 0 November, 2016 • • 111 Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 23.0 Anticipated Drilling Hazards 9-7/8" Hole Section: Lost Circulation: Ensure 500 lbs of medium/coarse fibrous material & 500 lbs different sizes of Calcium Carbonate are available on location to mix LCM pills at moderate product concentrations. Hole Cleaning: Maintain rheology w/ gel and gel extender. Sweep hole with gel or flowzan sweeps as necessary. Optimize solids control equipment to maintain density, sand content, and reduce the waste stream. Maintain YP between 25 —45 to optimize hole cleaning and control ECD. Wellbore stability: Lithology through this zone is a composite of pebble conglomerate and sand in the upper intervals with intermittent clay matrix. Carbonaceous material and coal may be noted. Gravel sizes that are larger than normal can cause hole-cleaning problems. If encountered, be prepared to increase the viscosity. Excessive quantities of gravel and sand may indicate wellbore instability. Increase properties up to a YP of—50 -—60 lbs/100ft2 to combat this issue. Maintain low flow rates for the initial 200' of drilling to reduce the likelihood of washing out the conductor shoe. To help insure good cement to surface after running the casing, condition the mud to a YP of 25 —30 prior to cement operations. Do not lower the YP beyond 25 to avoid trouble with sands that may be found on this well. Have Desco DF, SAPP, and water on hand to ensure the desired rheologies can be achieved. H2S: H2S is not present in this hole section. / No abnormal pressures or temperatures are present in this hole section. Page 38 Version 0 November, 2016 • • 14Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 6-3/4" Hole Section: Lost Circulation: Ensure 1000 lbs of each of the different sizes of Calcium Carbonate are available on location to mix • LCM pills at moderate product concentrations. Hole Cleaning: Maintain rheology w/viscosifier as necessary. Sweep hole w/20 bbls hi-vis pills as necessary. Optimize solids control equipment to maintain density and minimize sand content. Maintain YP between 20 - 30 to optimize hole cleaning and control ECD. Wellbore stability: Maintain MW as necessary using additions of Calcium Carbonate as weighting material. A torque reduction lube may be used in this hole section in concentrations up to 3% if needed. Maintain 6% KC1 in system for shale inhibition. Coal Drilling: The following lessons were learned from extensive experience drilling coal seams in Cook Inlet. The need for good planning and drilling practices is also emphasized as a key component for success. • Keep the drill pipe in tension to prevent a whipping effect which can disturb coal sections. • Use asphalt-type additives to further stabilize coal seams. • Increase fluid density as required to control running coals. • Emphasize good hole cleaning through hydraulics, ROP and system rheology. H2S: H2S is not present in this hole section. No abnormal temperatures are present in this hole section. Page 39 Version 0 November, 2016 • • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 24.0 Saxon Rig 169 Layout JOILE _ wr ` J v Sf07?= --- A. Itf IIII IA Ilii- 1111 piAi cx Will...1 ECM AP Mil ■. I■■ MEM Mc 16, rrrT�� Iil��--� _IIIIII s 1§1,2A,,®rn,Prol7riariiiillirdii;,I ' KO a w, 1111 _= 11 III . ii _IY.r c:,[ zl ■ Pr--- ----= 11111 !tii ll ;. ; ��f -'I!� ••1-I .Illllllllc ill -- i� ■" C� ,-AKEJ� L - e x y1 `'-.1111 I � Ifit' ' E 1� IIIIIIIIIIIIIIIIII - :pi •_r AN`-Ta,7,11,F ��---ggg cowwwncw a6u>rw 11111111 111111111 C Anmr 17,./TI, [ 6nrn<ra _ .. 'I I_-ul Page 40 Version 0 November, 2016 • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 25.0 FIT Procedure Formation Integrity Test (FIT) and Leak-Off Test (LOT) Procedures Procedure for FIT: 1. Drill 20' of new formation below the casing shoe (this does not include rat hole below the shoe). 2. Circulate the hole to establish a uniform mud density throughout the system. P/U into the shoe. 3. Close the blowout preventer (ram or annular). 4. Pump down the drill stem at 1/4 to 1/2 bpm. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) vs. drill pipe pressure until appropriate surface pressure is achieved for FIT at shoe. 6. Shut down at required surface pressure.Hold for a minimum 10 minutes or until the pressure stabilizes. Record time vs. pressure in 1-minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. The pre-determined surface pressure for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measures are required. Where required, the LOT is performed in the same fashion as the formation integrity test. Instead of stopping at a pre-determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with an FIT. Page 41 Version 0 November, 2016 . • II Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 26.0 Choke Manifold Schematic "Ii 1 i t . ii'Y 73. V 1141:0:.1) L.Y��; me S F. �fZ 11.1N .�.1�J �j31i ;.. as '�r�� r.:)r ' 4Rola .�`l. _ f) I4� ..:.„-S...1,k_ ...e'il r, ! r •n a L— 'f_ jC Thy a ±'__ [' -e moindVs 11111111111111 i ' .1:;/7° s II 111 T Ii fi owl M 0) a � 11 ft i:Lik.N‘i?. : ' ' 777::,. ' it P9 .r ._..... g . ... „____„,____7.,... _ , P [Y11el _$ r .1pl 1t.i 1 -, I. r■ Page 42 Version 0 November, 2016 • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 27.0 Casing Design Information Calculation & Casing Design Factors Ninilchik DATE: 11/10/2016 WELL: Kalotsa #2 FIELD: Ninilchik DESIGN BY: Monty M Myers Design Criteria: Hole Size 9-7/8" Mud Density: 8.8 ppg Hole Size 6-3/4" Mud Density: 10 ppg Hole Size Mud Density: Drilling Mode MASP: 2853 psi (see attached MASP determination&calculation) MASP: Production Mode MASP: 2853 psi (see attached MASP determination& calculation) Collapse Calculation: Section Calculation 1 Normal gradient external stress (0.454 psi/ft)and the casing evacuated for the internal stress Casing Section Calculation/Specification 1 2 3 4 Casing OD 7-5/8" 4-1/2" Top(MD) 0 0 Top(TVD) 0 0 Bottom (MD) 1,500 8,600 Bottom (TVD) 1,500 8,150 Length 1,500 8,600 Weight(ppf) 29.7 12.6 Grade L-80 L-80 Connection BTC DWC/C HT Weight w/o Bouyancy Factor(lbs) 44,550 108,360 Tension at Top of Section (lbs) 44,550 108,360 Min strength Tension(1000 lbs) 683 288 Worst Case Safety Factor(Tension) 15.33 2.66 Collapse Pressure at bottom (Psi) 653 3,545 Collapse Resistance w/o tension (Psi) 4,790 7,480 Worst Case Safety Factor(Collapse) 7.34 2.11 MASP (psi) 500 2,853 Minimum Yield(psi) 6,890 8,430 Worst case safety factor(Burst) 13.78 2.95 Page 43 Version 0 November, 2016 • Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 28.0 6-3/4" Hole Section MASP Maximum Anticipated Surface Pressure Calculation -'1 - 6-3/4"Hole Section Hilcorp Kalotsa#2 Ninilchik MD TVD Planned Top: 0 0 Planned TD: 8500 8150 Anticipated Formations and Pressures: Formation ND Est Pressure Oil/Gas/Wet PPG Grad Beluga 120 3408.5 1533.8 Gas Beluga 135 3446 1550.7 Gas 8.7 0.450 Tyonek TX 3639.5 1637.8 Gas 8.7 0.450 Tyonek T3 3721 1674.5 Gas 8.7 0.450 Tyonek T6 3976 1789.2 Gas 8.7 0.450 Tyonek 65 6315 2841.8 Gas 8.7 0.450 Tyonek 83 6600 2970.0 Gas 8.7 0.450 Tyonek 90 6778 3050.1 Gas 8.7 0.450 Tyonek 110 7068 3180.6 Gas 8.7 0.450 Tyonek 140 7354 3309.3 Gas 8.7 0.450 TD 7492 3370.0 Gas 8.7 • 0.450 Offset Well Mud Densities Well MW range Top(ND) Bottom(ND) Date Susan Dionne 5 9.5-9.8 ppg • 1,299' 7,987' 2006 - Susan Dionne 6 9.2-9.6 ppg 1,578' 4,520' 2008 Susan Dionne 7 9.2-10.1 ppg ' 1,450' 7,882' 2011 Assumptions: 1. Fracture gradient at shoe(1500'ND)is estimated at 17 ppg based on field test data. 2. Maximum planned mud density for the 6-3/4"hole section is 10.0 ppg. 3. Calculations assume"Unknown"reservoir contains 100%gas(worst case). 4. Calculations assume worst case event is 100%evacuation of wellbore to gas. Fracture Pressure at 7-5/8"shoe considering a full column of gas from shoe to surface: ND Frac Grad 1500ft X 0.884 psi/ft 1326 psi 1326(psi)-[0.1(psi/ft)*1500(ft)]= 1176 psi MASP from pore pressure during production mode(Complete evacuation to gas) 8150ft X 0.450 psi/ft 3668 psi Downhole 3668(psi)-[0.1(psi/ft)*8150(ft)]= 2853 psi Surface - Summary: 1. MASP while drilling 6-3/4"production hole is governed by frac pressure at 7-5/8"shoe • with entire wellbore evacuated to gas Page 44 Version 0 November, 2016 • • II Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 29.0 Spider Plot (NAD 27) (Governmental Sections) 41 O DIONNE 1 BHL• AD1359242 �� DIONNE 4 BHL ',.-^• / / /, / a�""' / / DIONNE 8 BHL• ,// //// • DIONNE 6 BHL•`— // / PAXTON 9 BHL // / I /K.ilot,,i:' to II I ADL384372 I PAXTON HL• I; PAXTON 8 BHL• //// ' C061505 I rKaiol>a 2 "I PW 1 / // DIONNE 5 BHL•' SOO1 S014W ,% NINILCNiK U -// 1 1 /I 1 / r r Kalotsa2_ SHL Kalotsa Pad fJ /� / ' Legend tt /// /// Kalotsa 2_SHL s / / r/ r/ Kalotsa 2_TPH I / i I /r // Kalotsa 2 BHL q •PAXTON 2 BHL/'r / Other Surface Well Locations I / / I I �` /' t r NINILCHIK2 • Other Bottom Hole Locations t I / I I I /r Well Paths 1 f / DIONNE 7 BHL• 1 i // Oil and Gas Unit Boundary 1 / Ii I I II 1 I iI /� A �III A 5 BHL ,l R +/Pad OD Q,3 C060385 ADL392657 1 II 0 1.000 2,000 Niniichik Unit Feet Kalotsa 2 Alaska State Plane Zone 4.NAD27 00 Ilil v.rp%Ia La,MA. Map Date:11 9/2016 Page 45 Version 0 November, 2016 • 0 Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 30.0 Surface Plat (NAD 27) i ,^.,J ,o04- 7 ,,z,/ I '� i- GOVT LOT 2 .TSG / ----- �cl.' no a ll »as twYO"e' /^ GOVT LOT 3 /..... I /a( /.k / /. KALOTSA PAD 452' FWL )f\KALOTSA #2 ♦ AS-BUILT POSITION v n LAT: 60' 06' 15.1654"N • Er- . LON: 151' 35' 24.3858"W u) ti N: 2233504.670' • E: 209850.746' • a N 452' FWL KN 85-129 LOT 1 2231' FSL • GOVT LOT 1 oz 6 ASP ZONE 4 NAD 27 • o2231' F51 ELEV: 126.5' (NGVD29) 1 I N:2232605.58 1 E:209377.32 no 2 BRASS CAP USOLO 1919 j A..............._.. SECTION 07 TIS R13W (NTS) 1 i - SECTION 18 T1S R13W (NTS) — . • --` NOTES i I BASIS OF GEODETIC CONTROL AND NA083 POSITION(EPOCH 2003)13 AN OPUS I SOLUTION FROM NGS COORDINATES STATIONS'KENS CORS ARP'.•TSEA CORS ARP,AND'ZANI WMS 1 CORS ARP'TO ESTABUSH THE POSITION OF'010 7 ON ``%%%\1 1 1 SUSAN DIONNE PAD.THE GEODETIC POSITION OF 010 3 WAS DETERMINED TO �% O F A 1 1I NAVE A LATITUDE OF 60'0S'43.995'N AND A LONGITUDE ISI'N'75.172'YY.THE � qE.........�.qS, /1 ALASKA STATE PLANE COORDINATES(ASP)ZONE 4 ARE =� "'",0'...''. t. N42238337.935 :G3,• 7 , Ea 1352842.572 —*;' Ia * / ELEV.139.79#(NGV029) _ �7r�I+l�[�.,� i 1. PI 2.BASIS OF VERTICAL CONTROL IS NGS BM V82 D 770698 LOCATED AT MILEPOST ,4l! / .4/1,1 S 127.8 OF THE STERLING HIOINVAY HAVING AN ELEVATION OF 283.59 FEET NGV029 / M SCOTT t1cLAN[ ACCORDING TO NGS PUBLISHED OATH. SCALE /I 4p28.S :.. 3.COORDINATE CONVERSIONS(NAD83 TO NAM)WERE DONE USING CORPSCON � I SOFTWARE VERSION 80 I. I FEE I 44%,'+1111\\\%•%% 'M1p.-, HILCORP ALASKA.LLC KALOTSA#2 Alt 111,34 fitNINILCHIK ALASKA H n e AS-BUILT SURFACE LOCATION NAD 27 Ililtnrp Alaska.,LL( �� SEC.07 TO1S R13W 1 SEWARD MERIDIAN,ALASKA 1"" Page 46 Version 0 November, 2016 • • II Kalotsa#2 Drilling Procedure Rev 0 Hilcorp Energy Company 31.0 Directional Plan (wp04) Page 47 Version 0 November, 2016 • • n ,i Hilcorp Energy Company Ninilchik Unit Kalotsa Kalotsa 2 Kalotsa 2 0 Plan: Kalotsa 2 wp04 1 Standard Proposal Report 09 November, 2016 HALLIBURTON Sperry Drilling Services WELL DETAILS: Ka otsa 2 NAD 1927(NADCON CONUS) Alaska Zone 04 eject: Ninilchik Unit HALLIBURTON Site: Kalotsa Ground Level: 126.50 Well: Kalotsa 2 +N/-S +E/-W Northing Easting Latittude Longitude Wellbore: Kalotsa 2 0.00 0.00 2233504.67 209850.75 60.104213°N 151.590107°W Plan: Kalotsa 2 wp04 REFERENCE INFORMATION -1500— Co-ordinate(N/E)Reference:Well Kalotsa 2,True North Vertical(TVD)Reference:Kalotsa 2 wp04 @ 1 44.50usft — _ Measured Depth Reference: Kalotsa 2 wp04 5 144.50us1t _ Calculation Method:Minimum Curvature -1000- -500- - 1'1 I. 0- 500— 500 1000— 1000 7518"x97/8" - 1500 1500— _-__ -Start Dir 3°/100':1600'MD,1600'TVD 2000— 2000 End Dir :2396.16'MD,2373.3'TVD " _ 2500 2500— - 3000 c 3000— N _ Beluga 120 00 3 __ 35 2 35007__Beluga 135 _ Tyonek TX p000 s__ a 4000— Tyonek T3 Ts 4500— Tyonek T6 - 5000 5000— Start Dir 2°/100':5815.21'MD,5499.55'TVD ID H 6500 5500— _ 6p00 6000- - 6500 _ Tyonek 65 K-2 wp01 T83 Tgt1 6500—r Tyonek 83 7000 K-2 wp01 T90 Tgt 2 7000- - Tyonek 90 7500 - Tyonek 110 7500 - Tyonek 140 8000 4 1/2"x 6 3/4" Total Depth:8500'MD,8150.05'TVD 8000- 8500_--' - Kalotsa 2 wp04 8500- 9000- 9500— r r l 1 I 1 1 1 1 1 1 I l 1 1 1 1 1 1 I 1 1 r r I r r r 1 I 1 1 1 1 I 1 1 1 1 I r 1 1 1 i 1 1 1 l I l l r r i I I r r I r I l 1 I 1 1 1 1 1 1 1 1 1 I 1 l l I I r 1 r 1 1 1 1 1 r I 1 -2000 -1500 -1000 -500 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 Vertical Section at 337.29° (1250 usft/in) n I Iilw►rl> HALLIBURTON Project: Ninilchik Unit • WELL DETAILS: Kalotsa 2 Site: Kalotsa Ground Level: 126.50 Sperry O'iII�r,<t Well: Kalotsa 2 +N/-S +E/-W Northing Easting Latittude Longitude Wellbore: Kalotsa 2 0.00 0.00 2233504.67 209850.75 60.104213°N 151.590107°W 1 Plan: Kalotsa 2 wp04 REFERENCE INFORMATION Eli Hi leop('�� Co-ordinate(N/E)Reference:Well Kalotsa 2,True North Vertical(TVD)Reference:Kalotsa 2 wp04 IE 144.50usft Measured Depth Reference: Kalotsa 2 wp04 l 144.50usft Calculation Method:Minimum Curvature 2400— CASING DETAILS TVD TVDSS MD Size Name 2250— 1500.00 1355.50 1500.00 7-5/8 7 5/8"x 9 7/8" 8150.05 8005.55 8500.00 4-1/2 4 1/2"x 6 3/4" 2100— 1950- - Total Depth:8500'MD,st5o.05'TVD 1800— i K-2 wp0l T90 Tgt 2 K-2 wp01 183 Tgtl 05.01 l 1650— -/-End Dir:7009.45'MD,6659.5'TVD 4 V2"x 6 3/4" , 60Q0 Kalotsa 2 wp04 ,j5p 5 1500- - 5-5 500- - 5Start Dir 2°/100':5815.21'MD,5499.55'TVD G - • 1350— 5250 rn - 0 o - 501* 1200— y�o = 6150 - '. 1050— a!'3- _ 6500 O 4250 900- - 00- 6p00 750- - -5150 -2500 600— -.5250 450- - 5p00 2150 300- - End Dir:2396.16'MD,2373.3'TVD - 25p0 • 150- - 2250 _ Start Dir 3'1100':1600'MD,1600'TVD #p0 0— 7 5/8"x 9 7/8"--- <7, '00 • -150 m1111111111 -1050 -900 -750 -600 -450 -300 -150 0 150 300 450 600 750 900 West(-)/East(+)(300 usft/in) • • Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Kalotsa 2 Company: Hilcorp Energy Company ND Reference: Kalotsa 2 wp04 @ 144.50usft Project: Ninilchik Unit MD Reference: Kalotsa 2 wp04 @ 144.50usft Site: Kalotsa North Reference: True Well: Kalotsa 2 Survey Calculation Method: Minimum Curvature ' Wellbore: Kalotsa 2 Design: Kalotsa 2 wp04 Project Ninilchik Unit Map System: US State Plane 1927(Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927(NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 w Using geodetic scale factor Site Kalotsa ,Site Position: Northing: 2,233,473.90usft Latitude: 60.104128°N From: Map Easting: 209,844.16usft Longitude: 151.590139°W Position Uncertainty: 0.00 usft Slot Radius: 13-3/16" Grid Convergence: -1.38 ° Well Kalotsa 2 Well Position +N/-S 0.00 usft Northing: 2,233,504.67 usft Latitude: 60.104213°N ' +El-W 0.00 usft Easting: 209,850.75 usft Longitude: 151.590107°W Position Uncertainty 0.00 usft Wellhead Elevation: 0.00 usft Ground Level: - 126.50 usft Wellbore Kalotsa 2 Magnetics Model Name Sample Date Declination Dip Angle Field Strength 1 (0) (°) (nT) BGGM2016 8/9/2016 15.92 73.12 55,211 Design Kalotsa 2 wp04 Audit Notes: Version: Phase: PLAN Tie On Depth: 18.00 Vertical Section: Depth From(ND) +N/-S +El-W Direction (usft) (usft) (usft) (°) 18.00 0.00 0.00 337.29 Plan Sections Measured Vertical ND Dogleg Build Turn Depth Inclination Azimuth Depth System +N/-S +El-W Rate Rate Rate Tool Face (usft) (°) (0) (usft) usft (usft) (usft) (1100usft) (°/100usft) (°1100usft) (°) 18.00 0.00 0.00 18.00 -126.50 0.00 0.00 0.00 0.00 0.00 0.00 1,600.00 0.00 0.00 1,600.00 1,455.50 0.00 0.00 0.00 0.00 0.00 0.00 2,396.16 23.88 337.29 2,373.30 2,228.80 150.88 -63.14 3.00 3.00 0.00 337.29 5,815.21 23.88 337.29 5,499.55 5,355.05 1,427.94 -597.54 0.00 0.00 0.00 0.00 7,009.45 0.00 0.00 6,659.50 6,515.00 1,654.26 -692.25 2.00 -2.00 0.00 180.00 7,309.45 0.00 0.00 6,959.50 6,815.00 1,654.26 -692.25 0.00 0.00 0.00 0.00 8,500.00 0.00 0.00 8,150.05 8,005.55 1,654.26 -692.25 0.00 0.00 0.00 0.00 11/9/2016 4:59:12PM Page 2 COMPASS 5000.1 Build 81 • • Halliburton HALLIBURTDN Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Kalotsa 2 Company: Hilcorp Energy Company TVD Reference: Kalotsa 2 wp04 @ 144.50usft Project: Ninilchik Unit MD Reference: Kalotsa 2 wp04 @ 144.50usft Site: Kalotsa North Reference: True Well: Kalotsa 2 Survey Calculation Method: Minimum Curvature Wellbore: Kalotsa 2 Design: Kalotsa 2 wp04 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (usft) (°) (°) (usft) usft (usft) (usft) (usft) (usft) -126.50 18.00 0.00 0.00 18.00 -126.50 0.00 0.00 2,233,504.67 209,850.75 . 0.00 0.00 100.00 0.00 0.00 100.00 -44.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 200.00 0.00 0.00 200.00 55.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 300.00 0.00 0.00 300.00 155.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 400.00 0.00 0.00 400.00 255.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 500.00 0.00 0.00 500.00 355.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 600.00 0.00 0.00 600.00 455.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 700.00 0.00 0.00 700.00 555.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 800.00 0.00 0.00 800.00 655.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 900.00 0.00 0.00 900.00 755.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 1,000.00 0.00 0.00 1,000.00 855.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 1,100.00 0.00 0.00 1,100.00 955.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 1,200.00 0.00 0.00 1,200.00 1,055.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 1,300.00 0.00 0.00 1,300.00 1,155.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 1,400.00 0.00 0.00 1,400.00 1,255.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 1,500.00 0.00 0.00 1,500.00 1,355.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 7 5/8"x 9 7/8" 1,600.00 0.00 0.00 1,600.00 1,455.50 0.00 0.00 2,233,504.67 209,850.75 0.00 0.00 Start Dir W/100':1600'MD,1600'TVD 1,700.00 3.00 337.29 1,699.95 1,555.45 2.41 -1.01 2,233,507.11 209,849.79 3.00 2.62 1,800.00 6.00 337.29 1,799.63 1,655.13 9.65 -4.04 2,233,514.42 209,846.94 3.00 10.46 1,900.00 9.00 337.29 1,898.77 1,754.27 21.69 -9.08 2,233,526.57 209,842.19 3.00 23.51 2,000.00 12.00 337.29 1,997.08 1,852.58 38.50 -16.11 2,233,543.55 209,835.57 3.00 41.74 2,100.00 15.00 337.29 2,094.31 1,949.81 60.03 -25.12 2,233,565.29 209,827.08 3.00 65.08 2,200.00 18.00 337.29 2,190.18 2,045.68 86.23 -36.08 2,233,591.74 209,816.75 3.00 93.48 2,300.00 21.00 337.29 2,284.43 2,139.93 117.02 -48.97 2,233,622.83 209,804.61 3.00 126.85 2,396.16 23.88 337.29 2,373.30 2,228.80 150.88 -63.14 2,233,657.02 209,791.26 3.00 163.56 End Dir :2396.16'MD,2373.3'TVD 2,400.00 23.88 337.29 2,376.81 2,232.31 152.31 -63.74 2,233,658.47 209,790.69 0.00 165.11 2,500.00 23.88 337.29 2,468.25 2,323.75 189.67 -79.37 2,233,696.19 209,775.96 0.00 205.60 2,600.00 23.88 337.29 2,559.68 2,415.18 227.02 -95.00 2,233,733.91 209,761.24 0.00 246.09 2,700.00 23.88 337.29 2,651.12 2,506.62 264.37 -110.63 2,233,771.62 209,746.51 0.00 286.58 2,800.00 23.88 337.29 2,742.56 2,598.06 301.72 -126.26 2,233,809.34 209,731.78 0.00 327.07 2,900.00 23.88 337.29 2,833.99 2,689.49 339.07 -141.89 2,233,847.05 209,717.06 0.00 367.56 3,000.00 23.88 337.29 2,925.43 2,780.93 376.42 -157.52 2,233,884.77 209,702.33 0.00 408.05 3,100.00 23.88 337.29 3,016.86 2,872.36 413.77 -173.15 2,233,922.49 209,687.60 0.00 448.54 3,200.00 23.88 337.29 3,108.30 2,963.80 451.12 -188.78 2,233,960.20 209,672.88 0.00 489.03 3,300.00 23.88 337.29 3,199.74 3,055.24 488.48 -204.41 2,233,997.92 209,658.15 0.00 529.52 3,400.00 23.88 337.29 3,291.17 3,146.67 525.83 -220.04 2,234,035.64 209,643.42 0.00 570.01 3,500.00 23.88 337.29 3,382.61 3,238.11 563.18 -235.67 2,234,073.35 209,628.69 0.00 610.50 3,528.32 23.88 337.29 3,408.50 3,264.00 573.76 -240.10 2,234,084.03 209,624.52 0.00 621.97 Beluga 120 3,600.00 23.88 337.29 3,474.05 3,329.55 600.53 -251.30 2,234,111.07 209,613.97 0.00 650.99 3,700.00 23.88 337.29 3,565.48 3,420.98 637.88 -266.93 2,234,148.79 209,599.24 0.00 691.48 11/9/2016 4:59:12PM Page 3 COMPASS 5000.1 Build 81 • • Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Kalotsa 2 Company: Hilcorp Energy Company TVD Reference: Kalotsa 2 wp04 @ 144.50usft Project: Ninilchik Unit MD Reference: Kalotsa 2 wp04 @ 144.50usft Site: Kalotsa North Reference: True Well: Kalotsa 2 Survey Calculation Method: Minimum Curvature Wellbore: Kalotsa 2 Design: Kalotsa 2 wp04 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (usft) (°) (°) (usft) usft (usft) (usft) (usft) (usft) 3,428.00 3,707.68 23.88 337.29 3,572.50 3,428.00 640.75 -268.13 2,234,151.68 209,598.11 0.00 694.59 Beluga 135 3,800.00 23.88 337.29 3,656.92 3,512.42 675.23 -282.56 2,234,186.50 209,584.51 0.00 731.97 3,800.64 23.88 337.29 3,657.50 3,513.00 675.47 -282.66 2,234,186.74 209,584.42 0.00 732.23 Tyonek TX 3,900.00 23.88 337.29 3,748.35 3,603.85 712.58 -298.19 2,234,224.22 209,569.79 0.00 772.46 4,000.00 23.88 337.29 3,839.79 3,695.29 749.94 -313.82 2,234,261.94 209,555.06 0.00 812.95 4,028.12 23.88 337.29 3,865.50 3,721.00 760.44 -318.22 2,234,272.54 209,550.92 0.00 824.33 Tyonek T3 4,100.00 23.88 337.29 3,931.23 3,786.73 787.29 -329.45 2,234,299.65 209,540.33 0.00 853.44 4,200.00 23.88 337.29 4,022.66 3,878.16 824.64 -345.08 2,234,337.37 209,525.61 0.00 893.93 4,300.00 23.88 337.29 4,114.10 3,969.60 861.99 -360.71 2,234,375.08 209,510.88 0.00 934.42 4,307.00 23.88 337.29 4,120.50 3,976.00 864.60 -361.81 2,234,377.73 209,509.85 0.00 937.25 Tyonek T6 4,400.00 23.88 337.29 4,205.53 4,061.03 899.34 -376.34 2,234,412.80 209,496.15 0.00 974.91 4,500.00 23.88 337.29 4,296.97 4,152.47 936.69 -391.97 2,234,450.52 209,481.42 0.00 1,015.40 4,600.00 23.88 337.29 4,388.41 4,243.91 974.04 -407.60 2,234,488.23 209,466.70 0.00 1,055.89 4,700.00 23.88 337.29 4,479.84 4,335.34 1,011.39 -423.23 2,234,525.95 209,451.97 0.00 1,096.38 4,800.00 23.88 337.29 4,571.28 4,426.78 1,048.75 -438.86 2,234,563.67 209,437.24 0.00 1,136.87 4,900.00 23.88 337.29 4,662.72 4,518.22 1,086.10 -454.49 2,234,601.38 209,422.52 0.00 1,177.36 5,000.00 23.88 337.29 4,754.15 4,609.65 1,123.45 -470.12 2,234,639.10 209,407.79 0.00 1,217.85 5,100.00 23.88 337.29 4,845.59 4,701.09 1,160.80 -485.75 2,234,676.82 209,393.06 0.00 1,258.34 5,200.00 23.88 337.29 4,937.02 4,792.52 1,198.15 -501.38 2,234,714.53 209,378.34 0.00 1,298.83 5,300.00 23.88 337.29 5,028.46 4,883.96 1,235.50 -517.01 2,234,752.25 209,363.61 0.00 1,339.32 5,400.00 23.88 337.29 5,119.90 4,975.40 1,272.85 -532.64 2,234,789.97 209,348.88 0.00 1,379.81 5,500.00 23.88 337.29 5,211.33 5,066.83 1,310.21 -548.27 2,234,827.68 209,334.15 0.00 1,420.30 5,600.00 23.88 337.29 5,302.77 5,158.27 1,347.56 -563.91 2,234,865.40 209,319.43 0.00 1,460.79 5,700.00 23.88 337.29 5,394.21 5,249.71 1,384.91 -579.54 2,234,903.11 209,304.70 0.00 1,501.28 5,800.00 23.88 337.29 5,485.64 5,341.14 1,422.26 -595.17 2,234,940.83 209,289.97 0.00 1,541.77 5,815.21 23.88 337.29 5,499.55 5,355.05 1,427.94 -597.54 2,234,946.57 209,287.73 0.00 1,547.92 Start Dir 2°/100':5815.21'MD,5499.55'TVD 5,900.00 22.19 337.29 5,577.57 5,433.07 1,458.55 -610.35 2,234,977.47 209,275.67 2.00 1,581.10 6,000.00 20.19 337.29 5,670.81 5,526.31 1,491.89 -624.30 2,235,011.14 209,262.52 2.00 1,617.25 6,100.00 18.19 337.29 5,765.25 5,620.75 1,522.21 -636.99 2,235,041.76 209,250.57 2.00 1,650.11 6,200.00 16.19 337.29 5,860.78 5,716.28 1,549.47 -648.40 2,235,069.28 209,239.82 2.00 1,679.66 6,300.00 14.19 337.29 5,957.28 5,812.78 1,573.64 -658.51 2,235,093.69 209,230.29 2.00 1,705.86 6,400.00 12.19 337.29 6,054.64 5,910.14 1,594.68 -667.32 2,235,114.94 209,221.99 2.00 1,728.68 6,500.00 10.19 337.29 6,152.73 6,008.23 1,612.58 -674.81 2,235,133.02 209,214.93 2.00 1,748.08 6,600.00 8.19 337.29 6,251.44 6,106.94 1,627.31 -680.97 2,235,147.89 209,209.12 2.00 1,764.05 6,700.00 6.19 337.29 6,350.65 6,206.15 1,638.86 -685.80 2,235,159.55 209,204.57 2.00 1,776.56 6,800.00 4.19 337.29 6,450.24 6,305.74 1,647.20 -689.30 2,235,167.97 209,201.28 2.00 1,785.61 6,809.29 4.00 337.29 6,459.50 6,315.00 1,647.81 -689.55 2,235,168.59 209,201.04 2.00 1,786.27 Tyonek 65 6,900.00 2.19 337.29 6,550.08 6,405.58 1,652.33 -691.44 2,235,173.15 209,199.26 2.00 1,791.17 7,000.00 0.19 337.29 6,650.05 6,505.55 1,654.25 -692.24 2,235,175.09 209,198.51 2.00 1,793.25 11/9/2016 4:59:12PM Page 4 COMPASS 5000.1 Build 81 • • Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Kalotsa 2 Company: Hilcorp Energy Company ND Reference: Kalotsa 2 wp04 @ 144.50usft Project: Ninilchik Unit MD Reference: Kalotsa 2 wp04 @ 144.50usft Site: Kalotsa North Reference: True Well: Kalotsa 2 Survey Calculation Method: Minimum Curvature Wellbore: Kalotsa 2 Design: Kalotsa 2 wp04 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/.W Northing Easting DLS Vert Section (usft) (°) (°) (usft) usft (usft) (usft) (usft) (usft) 6,515.00 7,009.45 0.00 0.00 6,659.50 6,515.00 1,654.26 -692.25 2,235,175.10 209,198.50 2.00 1,793.26 End Dir :7009.45'MD,6659.5'TVD 7,094.45 0.00 0.00 6,744.50 6,600.00 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 Tyonek 83 7,100.00 0.00 0.00 6,750.05 6,605.55 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 7,200.00 0.00 0.00 6,850.05 6,705.55 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 7,272.45 0.00 0.00 6,922.50 6,778.00 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 Tyonek 90 7,300.00 0.00 0.00 6,950.05 6,805.55 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 7,309.45 0.00 0.00 6,959.50 6,815.00 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 7,400.00 0.00 0.00 7,050.05 6,905.55 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 7,500.00 0.00 0.00 7,150.05 7,005.55 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 7,562.45 0.00 0.00 7,212.50 7,068.00 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 Tyonek 110 7,600.00 0.00 0.00 7,250.05 7,105.55 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 7,700.00 0.00 0.00 7,350.05 7,205.55 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 7,800.00 0.00 0.00 7,450.05 7,305.55 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 7,848.45 0.00 0.00 7,498.50 7,354.00 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 Tyonek 140 7,900.00 0.00 0.00 7,550.05 7,405.55 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 8,000.00 0.00 0.00 7,650.05 7,505.55 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 8,100.00 0.00 0.00 7,750.05 7,605.55 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 8,200.00 0.00 0.00 7,850.05 7,705.55 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 8,300.00 0.00 0.00 7,950.05 7,805.55 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 8,400.00 0.00 0.00 8,050.05 7,905.55 1,654.26 -692.25 2,235,175.10 209,198.50 0.00 1,793.26 8,500.00 ' 0.00 0.00 8,150.05 • 8,005.55 1,654.26 -692.25 2,235,175.10 , 209,198.50 . 0.00 1,793.26 Total Depth:8500'MD,8150.057VD-4 1/2"x 6 3/4" Targets Target Name -hit/miss target Dip Angle Dip Dir. ND +N1-S +E/-W Northing Easting -Shape (°) (°) (usft) (usft) (usft) (usft) (usft) K-2 wp01 T83 Tgt1 0.00 0.00 6,759.50 1,654.16 -692.25 2,235,175.00 209,198.50 -plan misses target center by 0.10usft at 7109.45usft MD(6759.50 TVD,1654.26 N,-692.25 E) -Circle(radius 50.00) K-2 wp01 T90 Tgt 2 0.00 0.00 6,959.50 1,654.26 -692.25 2,235,175.10 209,198.50 -plan hits target center -Circle(radius 50.00) Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (usft) (usft) Name (") (") 8,500.00 8,150.05 4 1/2"x 6 3/4" 4-1/2 6-3/4 1,500.00 1,500.00 7 5/8"x 9 7/8" 7-5/8 9-7/8 11/9/2016 4:59:12PM Page 5 COMPASS 5000.1 Build 81 • • Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Kalotsa 2 Company: Hilcorp Energy Company TVD Reference: Kalotsa 2 wp04 @ 144.50usft Project: Ninilchik Unit MD Reference: Kalotsa 2 wp04 @ 144.50usft Site: Kalotsa North Reference: True Well: Kalotsa 2 Survey Calculation Method: Minimum Curvature Wellbore: Kalotsa 2 Design: Kalotsa 2 wp04 Formations Measured Vertical Vertical Dip Depth Depth Depth SS Dip Direction (usft) (usft) Name Lithology (0) (0) 3,707.68 3,572.50 Beluga 135 3,800.64 3,657.50 Tyonek TX 3,528.32 3,408.50 Beluga 120 4,028.12 3,865.50 Tyonek T3 6,809.29 6,459.50 Tyonek 65 7,848.45 7,498.50 Tyonek 140 7,094.45 6,744.50 Tyonek 83 7,562.45 7,212.50 Tyonek 110 7,272.45 6,922.50 Tyonek 90 4,307.00 4,120.50 Tyonek T6 Plan Annotations Measured Vertical Local Coordinates Depth Depth +N/-S +El-W (usft) (usft) (usft) (usft) Comment 1,600.00 1,600.00 0.00 0.00 Start Dir 3°/100':1600'MD,1600'TVD 2,396.16 2,373.30 150.88 -63.14 End Dir :2396.16'MD,2373.3'TVD 5,815.21 5,499.55 1,427.94 -597.54 Start Dir 2°/100':5815.21'MD,5499.55'TVD 7,009.45 6,659.50 1,654.26 -692.25 End Dir :7009.45'MD,6659.5'TVD 8,500.00 8,150.05 1,654.26 -692.25 Total Depth:8500'MD,8150.05'TVD 11/9/2016 4:59:12PM Page 6 COMPASS 5000.1 Build 81 r • s Hilcorp Energy Company Ninilchik Unit Kalotsa Kalotsa 2 Kalotsa 2 Kalotsa 2 wp04 Sperry Drilling Services Clearance Summary IA Anticollision Report 09 November,2016 t ti Closest Approach 3D Proximity Scan on Current Survey Data(North Reference) Reference Design: Kalotsa-Kalotsa 2-Kalotsa 2-Kalotsa 2 wp04 Well Coordinates: 2,233,504.67 N,209,850.75 E(60°06'15.1r N,151°35'24.39"W) Datum Height: Kalotsa 2 wp04 @ 144.50usft Scan Range:0.00 to 8,500.00 usft.Measured Depth. Scan Radius is 1,048.20 usft.Clearance Factor cutoff is Unlimited.Max Ellipse Separation is Unlimited Geodetic Scale Factor Applied Version: 5000.1 Build:81 Scan Type: GLOBAL FILTER APPLIED:All wellpaths within 200'+100/1000 of reference Scan Type: 25.00 HALLIBURTON Sperry Drilling Services I • Hilcorp Energy Company HALLIBURTON Ninilchik Unit Anticollision Report for Kalotsa 2-Kalotsa 2 wp04 Closest Approach 3D Proximity Scan on Current Survey Data(North Reference) Reference Design: Kalotsa-Kalotsa 2-Kalotsa 2-Kalotsa 2 wp04 Scan Range: 0.00 to 8,500.00 usft.Measured Depth. Scan Radius is 1,048.20 usft.Clearance Factor cutoff is Unlimited.Max Ellipse Separation is Unlimited Measured Minimum @Measured Ellipse @Measured Clearance Summary Based on Site Name Depth Distance Depth Separation Depth Factor Minimum Separation Warning Comparison Well Name-Wellbore Name-Design (usft) (usft) (usft) (usft) usft Kalotsa Kalotsa 1-Kalotsa 1-Kalotsa 1 wp04a 480.83 25.29 480.83 22.61 481.85 9.416 Ellipse Separation Pass- Kalolsa 1-Kalotsa 1-Kalotsa 1 wp04a 525.00 26.46 525.00 23.54 525.20 9.049 Clearance Factor Pass- Kalotsa 3-Kalotsa 3-Kalotsa 3 wp04 275.00 26.53 275.00 24.99 254.50 17.185 Ellipse Separation Pass- Kalotsa 3-Kalotsa 3-Kalotsa 3 wp04 450.00 31.68 450.00 29.34 427.68 13.581 Clearance Factor Pass- Kalotsa 4-Kalotsa 4-Kalotsa 4 wp04 468.81 56.51 468.81 54.07 448.95 23.102 Centre Distance Pass- Kalotsa 4-Kalotsa 4-Kalotsa 4 wp04 475.00 56.52 475.00 54.04 455.08 22.807 Ellipse Separation Pass- Kalotsa 4-Kalotsa 4-Kalotsa 4 wp04 625.00 63.90 625.00 60.58 600.76 19.245 Clearance Factor Pass- Paxton Paxton#4-Paxton#4-Paxton#4 3,550.00 461.74 3,550.00 367.01 6,325.74 4.875 Clearance Factor Pass- Paxton#4-Paxton#4-Paxton#4 3,725.00 444.77 3,725.00 356.97 6,478.51 5.066 Ellipse Separation Pass- Paxton#4-Paxton#4-Paxton#4 3,801.34 442.90 3,801.34 359.11 6,541.84 5.286 Centre Distance Pass- Survey tool program From To SurveylPlan Survey Tool (usft) (usft) 18.00 1,500.00 Kalotsa 2 wp04 MWD+SC+sag 1,500.00 8,500.00 Kalotsa 2 wp04 MWD+SC+sag Ellipse error terms are correlated across survey tool tie-on points. Calculated ellipses incorporate surface errors. Separation is the actual distance between ellipsoids. Distance Between centres is the straight line distance between wellbore centres. Clearance Factor=Distance Between Profiles/(Distance Between Profiles-Ellipse Separation). All station coordinates were calculated using the Minimum Curvature method. 09 November,2016- 17:12 Page 2 of 4 COMPASS • • Hilcorp Energy Company HALLIBURTON Ninilchik Unit Anticollision Report for Kalotsa 2-Kalotsa 2 wp04 Direction and Coordinates are relative to True North Reference. Vertical Depths are relative to Kalotsa 2 wp04 @ 144.50usft. Northing and Easting are relative to Kalotsa 2. Coordinate System is US State Plane 1927(Exact solution),Alaska Zone 04. Central Meridian is-150.00°,Grid Convergence at Surface is:-1.38°. Ladder Plot .____ , c , , 911 „ ,i, P„....._ , lot , , , , , ii O . __, -4 .----, 4-, — ”. MI I I r, o i 1 i, ,i LEGEND 2 611 - kii, , , 1 CD : � CD_ L11- i I Paxton#4,Paxton#4,Paxton#4 V0 1 at i i � i i i i $ Kalotsa 2wp04 0301 Fir 1 1 0) I 0 0 900 1800 2700 3600 4500 Measured Depth(900 usft/in) 09 November,2016- 17:12 Page 3 of 4 COMPASS • Hilcorp Energy Company HALLIBURTON Ninilchik Unit Anticollision Report for Kalotsa 2-Kalotsa 2 wp04 Clearance Factor Plot: Measured Depth versus Separation(Clearance)Factor 10.00 8.75 7.50 - E 6.25 - LEGEND LL _ Kalotsa 1,Kalotsa 1,Kalotsa 1 wp04a VO p 5.00- - - Kalotsa 3,Kalotsa 3,Kalotsa 3 wp04 V0 - Kalotsa 4,Kalotsa 4,Kalotsa 4wp04V0 3.75 �- Paxton#4,PaxiDn#4,Paxton#4V0 -B- Kalotsa 2wp04 2.50 Collision Avoidance Req —p Go Zone-Stop Drilling 1.25 ---- 0.00 ilii 1111 1111 ilii 1111 ilii ilii ilii ilii 111111111 ilii 0 425 850 1275 1700 2125 2550 2975 3400 3825 4250 4675 5100 MESSued Depth(850 usttfn) 09 November,2016- 17:12 Page 4 of 4 COMPASS • • ✓ C O C CL ;n O a a, E ,-1 >, o O c ,- N c 4— C • O 3 co c O C o t 0 N v > +� "O o u -o Q• L o -a v O N C L!1 co 4-1 a) 3 a) O C ▪ 7 t4- O t,,,ON L v) a) O aaa)) v `r) C CA ▪ L R C I— 7 0 a >. ,:- 3 •c- - v1 O (6 U s E (Lo a. a) +, > (o -a f, > (o -a o a) o C fl. 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CO> al "C Y a) 7 d Z -0 O ate+ 03 5 ;.t a� 0 vi � a0 W o 0 p C m d f0 OG O C �O Z U) O co ii III) H N 0 < H GOC c% ta/i < U Q E m • • Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent Tuesday, November 29, 2016 2:32 PM To: mmyers@hilcorp.com Cc: Davies,Stephen F(DOA) (steve.davies@alaska.gov) Subject: Kalotsa#2 (PTD 216-155) Monty, Came up with some of the same items on this well as on Kalotsa #1. 1) FIT will be increased to 13.5 ppg(from 12.5 ppg)to increase safety margin. 2) Diverter waiver denied... 3) Cement volume calculation in the surface casing. ( lead has extra). I have updated your procedures with my changes. Guy Schwartz Sr. Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226 or(Guy.schwartz@alaska.gov). 1 • • OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format. ! • TRANSMITTAL LETTER CHECKLIST WELL NAME: `-�— PTD: � �� /S -- _Development Service Exploratory Stratigraphic Test Non-Conventional 1 FIELD: i 4( (C2(c - 'i - POOL: r - Check Box for Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI The permit is for a new wellbore segment of existing well Permit LATERAL No. , API No. 50- - - - (If last two digits Production should continue to be reported as a function of the original in API number are API number stated above. between 60-69) In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well Pilot Hole name ( PH) and API number (50- - ) from records, data and logs acquired for well (name on permit). The permit is approved subject to full compliance with 20 AAC 25.055. Approval to produce/inject is contingent upon issuance of a conservation Spacing Exception order approving a spacing exception. (Company Name) Operator assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the AOGCC must be in no greater Dry Ditch Sample than 30' sample intervals from below the permafrost or from where samples are first caught and 10'sample intervals through target zones. Please note the following special condition of this permit: production or production testing of coal bed methane is not allowed for Non-Conventional (name of well) until after (Company Name) has designed and Well implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the AOGCC to obtain advance approval of such water well testing program. Regulation 20 AAC 25.071(a)authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by (Company Name) in the attached application,the following well logs are also required for this well: Well Logging Requirements Per Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 days after completion,suspension or abandonment of this well. Revised 2/2015 0 • ❑❑ 0 76o N N N• Cl. . N , N . N C ' , N O N o ' , C C a' O• . N a) v, °a • E. ��+ p 0 41-) c? a � C C ur O a) Q o^,a o p. E. oj. -O I m o. Er c 0. 0 iY � = a > o v ri 3 i ° o o, 2 $ ui 3 3 ' E 2.1 a) U. a) ca E, ° Z d . N o O c >4 w a a ° , , . . E a ). c' ; _ d w' M, `° - 0) -d 3, . °� 0, E. �, . •'� ° aurc 0) o c, a n az a 00; N . Z: V)' -Cal ' ' ' ' . a)' W —, g. w V) a a' C FN- O �, N 3. C N' '3 a •c. -Ful' 3. 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Kalotsa 2 50-133-20659-00-00 Ninilchik Field Kenai Peninsula Borough, Alaska January 6, 2017 – January 19, 2017 Provided by: Approved by: Jacob Dunston Compiled by: Ralph Winkelman Russell Wardner Distribution Date: February 06, 2017 Hilcorp Alaska, LLC Kalotsa 2 1 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT & CREW ................................................................................................ 2 1.1 Equipment Summary ...................................................................................................................... 2 1.2 Crew................................................................................................................................................ 2 2 GENERAL WELL DETAILS ................................................................................................................... 3 2.1 Well Objectives ............................................................................................................................... 3 Hole Data ................................................................................................................................................... 4 2.2 Daily Activity Summary ................................................................................................................... 5 3 GEOLOGICAL DATA ............................................................................................................................. 7 3.1 Lithostratigraphy ............................................................................................................................. 7 3.2 Lithology Details ............................................................................................................................. 8 3.3 Sampling Program ........................................................................................................................ 20 4 DRILLING DATA .................................................................................................................................. 21 4.1 Surveys ......................................................................................................................................... 21 4.2 Bit Record ..................................................................................................................................... 25 4.3 Mud Record .................................................................................................................................. 26 4.4. Drilling Progress ........................................................................................................................... 27 5 SHOW REPORTS ............................................................................................................................... 28 6 DAILY REPORTS ................................................................................................................................ 29 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 Hilcorp Alaska, LLC Kalotsa 2 2 1 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary Parameter Equipment Type /Position Total Downtime Comments Computers – Surface Logging (3) Rigwatch Server, Rigwatch Remote DML, LWD WITS, Rigwatch Remote 0 Ditch gas QGM gas trap; Flame ionization total gas & chromatography. Hook Load / Weight on bit WITS from Pason 1.25 hour total Pason locked up and reboot. Mud Flow In Calculated value derived from Strokes/Minute and Pump Output 0 Mud Flow Out WITS from Pason “ Pit Volumes, Pit Gain/Loss WITS from Pason “ Pump Pressure WITS from Pason “ Pump Stroke Counters (2) WITS from Pason “ Rate of Penetration Calculated from Pason “ RPM WITS from Pason “ Torque WITS from Pason “ WITS To/ From Pason Rigwatch Remote (HP Compaq) 1.2 Crew Mud Logging Unit Type: Arctic Mud Logging Unit Number: ML038 Logging Geologists Years1 Days2 Sample Catchers/Loggers Years Days2 Russell Wardner 10 Mike Skiles 8 21 Ralph Winkelman 27 22 Ashley Wilderom 4 10 *1 Years’ experience as Mudlogger *2 Days at wellsite between rig up and rig down of logging unit. Hilcorp Alaska, LLC Kalotsa 2 3 2 GENERAL WELL DETAILS 2.1 Well Objectives Kalotsa #2 is and S-shaped directional grassroots development well to be drilled off of the Kalotsa pad. Reservoir analysis and subsurface mapping has identified an optimal location for infill development of the Upper Tyonek sands, as well as an area with little to no production in the Middle and Upper Beluga sands. The base plan is a directional wellbore with a kickoff point at 1500’ MD. Maximum hole angle will be 24 deg. And TD of the well will be 8500’ MD/ 8150’ TVD, ending with 0 deg inclination left in the hole. The vertical section will be 1794’. Operator: HILCORP ALASKA, LLC Well Name: Kalotsa 2 Field: Ninilchik Field County: Kenai Peninsula Borough State: Alaska Company Representatives: Rance Pederson, Robert Wall , Clint Montague, Adam Dorr Location: Surface Coordinates 2231’ FSL, 452’ FWL, Sec 7, T1N, R13W, SM, AK Ground ( Pad ) Elevation 126.5’ AMSL Rotary Table Elevation 18’ RKB – 144.5’ AMSL Classification: Development – Gas API #: 50-133-20659-00-00 Permit #: 216-155 Rig Name/Type: Saxon 169 / Land / Double Spud Date January 6, 2017 Total Depth Date: January 19, 2017 Total Depth 8200’MD/ 7857.43’TVD Primary Targets Tyonek 65 6809’MD/ 6315’TVD, Tyonek 83 7094’MD/ 6600’TVD, Tyonek 90 7272’MD/ 6778’TVD Total Depth Formation: Tyonek Completion Status: 4 1/2” Casing LWD-MWD Services. Halliburton / Sperry Drilling Services Directional Drilling Halliburton / Sperry Drilling Services Drilling Fluids Service Halliburton / Baroid Wireline Logging Service Halliburton Hilcorp Alaska, LLC Kalotsa 2 4 Hole Data Hole Section Max Depth TD Formation MW ppg Dev oinc Csg Dia Shoe Depth LOT ppg MD (ft) TVD (ft) MD (ft) TVD (ft) 9 7/8” 1388’ 1387.97’ Beluga 9.05 0.37 7 5/8 1378.77’ 1378.74 13.3 6 ¾” 8200’ 7857.43’ Tyonek 9.35 1.01 4 ½” 8184.5 7841.93 Hilcorp Alaska, LLC Kalotsa 2 5 2.2 Daily Activity Summary January 5, 2017: Rig up mudlogging unit January 6, 2017: Continue rig up. Prepare to spud well. Drill from 100' to 344'. POOH. Make up BHA. January 7, 2017: Drill f/ 344' t/ 673', Change out wash pipe, Drill f/ 673' t/ 921, Wipe hole to 299' (Wiper gas 7u), Drill f/ 921' t/ 1388', Circulate hole, Wipe hole to 290' (wiper gas 10u), Circulate hole, POOH January 8, 2017: POOH, Laydown BHA, Rig up and run casing, Cement casing, Rig down diverter line January 9, 2017: Nipple down, Nipple up January 10, 2017: Test bop, p/u 4 1/2" drill pipe January 11, 2017: Pick-up 4 1/2" drill pipe, make up bottom hole assembly and bit, run in hole to 1259, tag cement stringer, drill out cement and shoe track at 1291, drill 20' to 1408, pump 20 bbl spacer, pressured up during displacement, unable to pump, rack back stand, blow down, check suction, discharge screens and surface lines for blockage, clean screes no blockage on stand pipe lines, attempt to pump January 12, 2017: attempt to pump @ shoe no good, pooh, unplug tools and bit, make-up BHA and re- run bit#2, single in drill pipe, run in hole to shoe, fit to 13.3, drill 1408 to 1700 January 13, 2017: drill 1700-2490, wipe hole, drill ahead 2490-3088 at report time January 14, 2017: drill 3088-3481, circulate bottoms up, wipe 3481-2424, tight 2635-3424, 30k over, mad pass 2753-2735, service rig, run in hole 2424-3481, wash last two stands, drill 3481-4414 January 15, 2017: drill 4414-4476, circulate and pump hi-vis sweep, wipe to 1430, tight spots 4030' and 2214', service rig, run in hole 1430-4386, wash down 4386-4476, drill 4476-5351 January 16, 2017: drill 5351-5536, circulate hole clean, pump sweep, wipe to 4475, service rig, run in hole to 5536, wash last one down, drill ahead 5536-6345. January 17, 2017: drill 6345-6596, circulate hole clean, pump sweep, wipe to 5466, wash 6501-6596, drill 6596-7191 January 18, 2017: drill 7091-7589, wipe to 6532, drill ahead 7589-8065. January 19, 2017: Drill f/ 8066' t/ TD depth of 8200', Circulate clean and wipe hole to shoe, Cut and slip line, RIH, Fill pipe @ 4540' (200u), RIH, Tag up @ 5311', Circulate through (232u), RIH, January 20, 2017: Ream to bottom (1874u max), Raise viscosity of mud to 80, POOH to shoe, Service rig, POOH and lay down tools. January 21, 2017: Running E-logs January 22, 2017: Run E-logs, R/D logging crew, Prep for BOP test. January 23, 2017: Run BOP test, Make up clean out assembly, RIH, Circulate @ 3700' (Max gas 172u), RIH. Hilcorp Alaska, LLC Kalotsa 2 6 January 24, 2017: RIH to 5900', Circulate (Max gas 586u), RIH to 6513', Ream through to 6610', RIH from 7170', Ream down, RIH f/ 7230' t/ 7660', Ream to bottom (Max gas 3,064u), Circulate and condition mud, POOH to 6977', (hole swabbing) POOH f/ 6977' t/ 6170', RIH from 6170' to 8200', Circulate and condition mud (Max gas 103u), POOH and laydown drill pipe. January 25, 2017: January 26, 2017: Hilcorp Alaska, LLC Kalotsa 2 7 3 GEOLOGICAL DATA 3.1 Lithostratigraphy Tops picked by Hilcorp Geologist, Jacob Dunston FORMATION PROGNOSED ACTUAL MD (ft) TVD (ft) SSTVD (ft) MD (ft) TVD (ft) SSTVD (ft) Primary T65 6809 6315 6170 6816.8 6474.76 6330.26 T83 7094 6600 6455 7098.8 6756.38 6611.88 T90 7272 6778 6633 7281.2 6938.74 6794.24 Secondary T3 4028 3721 3576 4025.4 3865.08 3720.58 T6 4307 3976 3831 4272.9 4090.92 3946.42 T140 7848 7354 7209 7821.6 7479.06 7334.56 Hilcorp Alaska, LLC Kalotsa 2 8 3.2 Lithology Details As per Hilcorp direction, a Canrig/NDS-provided full service mudlogging program, with lithology descriptions of interval-collected rock cuttings samples in the Beluga and Tyonek Formations, was initiated at the 6 ¾” production interval at 1388’. The Kenai Group formations of Alaska’s Cook Inlet Basin, which include the Sterling, Beluga, and Tyonek were deposited in a variable-energy fluvial system within a large closed fore-arc basin. The stratigraphic column consists of very dominant thin to massive sections of sandstone and claystone-siltstone, which are interrupted by extensively-distributed thinner zones of coal and carbonaceous rocks, locally to generally abundant thin layers of original and re-deposited volcanic ash, and minor beds of basal or modal conglomerate. Gradational upward-fining sequences and bi-modal zones are abundant within the sandstones. Stratovolcanoes, perpetually forming along the fore-arc’s margins; produced abundant widely-distributed deposits of vitric air fall volcanic ash; which became a major directly-derived source, and/or a consistent lithogenic influence, for all Tertiary soft-sediment rocks in the Cook Inlet Basin. Note that the special modifying term “tuffaceous” in Canrig/NDS Lithology Descriptions was created to address the diversity of volcanic-origin rocks in the Cook Inlet basin, and its use may include everything from discernible micro-shard concentrations of disaggregated volcanic glass to rare layers of vitric ignimbrite. Sand (1388' - 1490') = medium to medium dark gray with a salt and pepper appearance, individual grains dominantly medium to dark gray, black, clear to translucent quartz and volcanic glass, medium to dark greenish gray; very fine upper to coarse lower, dominantly fine upper to medium lower; angular to subangular; poor to fair sorting; unconsolidated; non calcareous; trace thin coal beds. Sand (1490' - 1540') = dark gray; lithic sand black, dark gray with translucent, cloudy to clear; fair sorted; upper fine to lower coarse; angular to subround; dominant subround; moderate sphericity; unconsolidated, colloidal clay to silt ortho matrix; 50-60% meta sedimentary lithics, quartz, feldspar, trace light brown orange mica/biotite with slight crenulation, sheets to thin books. Tuffaceous Siltstone/ Claystone (1530'- 1560') = medium light gray with olive gray hue; smooth clayey to silty texture; moderate pasty, hydrated poorly soluble; low density; floating arenaceous carbonaceous mater, very fine sand disseminated; tabular to nodular; non calcareous; grades to sandstone. Carbonaceous Shale/ Coal (1580’ - 1590') = gray brown, dusky yellow brown to dark brown; moderate hard to very firm; gritty argillaceous to slight smooth poorly resinous; coal thin lens in carbonaceous shale to trace thin bedded <1cm lignitic coals; moderate pinpoint outgassing. Sandstone/ Sand (1645' - 1675') = dark gray to gray white; hard, calcareous cement lithic sandstone with trace white kaolin in matrix, along fractures with continue meta sedimentary lithics, quartz; unconsolidated fining down from coarse to fine to medium to very fine; flaky scaly well indurated cuttings slightly platy; point contact fabric, to soft pseudo-matrix of clayey kaolin/ tuffaceous clay. Tuffaceous Claystone/ Sand (1680’ - 1740') = moderate gray, faint bluish gray hue; smooth clayey texture, finely sandy in part; massive, moderate pasty soft mushy to curdled; low density; hydrates to nodular to tabular; slight expansive; non calcareous; trace carbonaceous material; increase silty, arenaceous fine sandy. Coal (1740' - 1750') = dark brown to black; small blunt cuttings with good sharp subplanar to slight curved fracture; smooth, very slight resinous; lignitic to slight subbituminous; thin bedded; moderate pinpoint outgassing. Hilcorp Alaska, LLC Kalotsa 2 9 Carbonaceous Siltstone (1795' - 1810') = medium dark to medium light gray; very firm to slight hard, brittle; platy, scaly to subtabular cuttings habit; trace black blocky coal thin interbeds; coal varied light brown plant remains to lens or random orientation detritus; weakly calcareous. Sand (1825' - 1840') = medium light to dark gray; unconsolidated, moderate well sorted; very fine to medium upper; dominant lower medium to upper fine; very angular to subround; moderate to high sphericity; dominant quartz, 30% meta sedimentary lithics; trace mica. Tuffaceous Claystone/ Sand (1840' - 1900') = medium gray with olive hues; moderate cohesive, slight adhesive reactive massive bedded claystone with some intercalated flour sands very fine to fine; common trace carbonaceous mater, thin black blocky sub bituminous coals. Tuffaceous Claystone (1900' - 1960') = medium gray with olive gray to light brown hues; soft, clayey texture; nodular to tabular; smooth, occasionally silty; sectile; moderate hydrated, reactive; low density; non calcareous; massive. Sand (1930' - 1980') = medium gray, dark gray; fair to moderate well sorted; coarse to very fine; dominant fine lower to upper medium; subangular to subround; high to moderate sphericity; dominant quartz; 20-30% meta sedimentary lithics. Sand (1990' - 2030') = medium dark gray; fair sorted; very fine upper to coarse upper; dominant medium upper to upper fine; subangular to subround; moderate to low sphericity; unconsolidated and loose, clay matrix associated; slight conglomeratic, interbeds with silty tuffaceous claystone @ 2030'. Coal (2030' - 2040') = dark brown, black to medium gray; moderate hard; resinous to slight vitreous; blocky, to elongated brittle fracture; silty to sub bitum inous. Sand (2040' - 2110') = dark to medium dark gray; lithic sands dark gray, common with microsparkling moderate mature mod well rounded to subangular meta sedimentary 10-30% with rest mature vitreous, clear to cloudy quartz with subangular to subround dominant; well to fairly well sort; very fine to coarse lower; dominant lower fine to lower medium; high to moderate sphericity; unconsolidated and loose; trace light brown mica sheets, very fine to fine; easy friable, soluble clay matrix; bulk calcareous, maybe mud additive; trace point contact fabrics, occasional good frosted grains, overgrowths. Tuffaceous Claystone (2110' – 2140’) = medium light gray; smooth, clayey to silty; tabular to nodular; sectile; moderate cohesion; soft, pasty; sand interbeds. Coal (2140' - 2155') = black to brownish black, white to light brown plant debris, calcite; moderate hard, brittle and crunchy; smooth moderate resinous; elongate blocky to splintery fracture. Sand (2185' - 2230') = medium to medium dark gray; very well to fair sorted; lower very fine to upper fine, coarsens to lower very fine to lower coarse with dominant lower fine to medium upper; very angular to subround; moderate to high sphericity; dominant quartz, 20-30% meta sedimentary lithics; trace mica; unconsolidated, loose easy soluble interstitial clay to massive bedded. Tuffaceous Claystone/ Tuffaceous Siltstone (2230' - 2300') = medium light to light gray; very soft, very sticky; shapeless, irregular cuttings; silty to clayey texture; greasy luster; hydrophilic; very soluble and moderately expansive; poor cohesiveness; fair to good adhesiveness; non calcareous; trace to common thin coal beds throughout. Hilcorp Alaska, LLC Kalotsa 2 10 Tuffaceous Claystone/ Tuffaceous Siltstone (2300' - 2360') = medium light to light gray with very light yellowish brown secondary hues; soft; shapeless, amorphous cuttings; silty to clayey texture; dull to greasy luster; hydrophilic; very soluble; slight to moderately expansive; poor cohesiveness; fair to good adhesiveness; non calcareous; trace fine to medium suspended sands; trace thin coal beds. Sand/ Sandstone (2360' - 2420') = medium gray overall with a weak salt and pepper appearance, individual grains dominantly medium to dark gray, black, clear to translucent quartz and volcanic glass; very fine upper to medium upper, dominantly fine; angular to subangular; moderately well sorted; disaggregated with trace dark gray sandstone; hard to brittle; fine; very calcareous cement; trace thin coal beds. Tuffaceous Claystone/ Tuffaceous Siltstone (2420' - 2470') = medium light to light gray; very soft, very sticky; shapeless, irregular cuttings; silty to clayey texture; dull luster; hydrophilic very soluble and moderately expansive; poor cohesiveness; fair to good adhesiveness; non calcareous; trace to common thin coal beds throughout interval. Sand/ Sandstone (2470' - 2540') = medium to dark gray with a salt and pepper appearance, individual grains dominantly medium to dark gray, black, clear to translucent quartz and volcanic glass; very fine upper to medium upper, dominantly fine; angular to subangular; moderately well sorted; disaggregated with common dark gray sandstone; hard to brittle; fine; very calcareous cement; trace thin coal beds throughout interval. Tuffaceous Claystone/ Tuffaceous Siltstone (2540' - 2600') = medium light to light gray with very light brownish gray secondary hues; very soft; shapeless, amorphous cuttings; silty to clayey texture; dull to greasy luster; hydrophilic very soluble; slight to moderately expansive; poor cohesiveness; fair to good adhesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions; trace thin coal beds throughout interval. Sand (2600' - 2660') = medium to medium dark gray with weak salt and pepper appearance, individual grains dominantly medium to dark gray, black, dark greenish gray, clear to translucent quartz and volcanic glass; very fine upper to coarse upper, dominantly fine upper to medium lower; angular to subangular; poor to fair sorting; unconsolidated; non calcareous; trace thin coal beds. Tuffaceous Claystone/ Tuffaceous Siltstone (2660' - 2720') = medium light gray with light yellowish gray secondary hues; very soft to slightly firm; irregular, wedge shaped to amorphous, shapeless cuttings; silty to clayey texture; dull, earthy to greasy luster; hydrophilic; very soluble; moderately expansive; poor cohesiveness; fair adhesiveness; trace dark brown to black microthin carbonaceous laminations and inclusions; non calcareous; trace thin coal beds. Tuffaceous Claystone/ Tuffaceous Siltstone (2720' - 2790') = medium to medium light gray with very light brownish gray secondary hues; very soft; shapeless, globular cuttings; silty to clayey texture; dull to greasy luster; hydrophilic; very soluble; slight to moderately expansive; poor cohesiveness; fair to good adhesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions; trace thin coal beds throughout interval. Tuffaceous Claystone/ Tuffaceous Siltstone (2790' - 2840') = medium to medium light gray with very light brownish gray and light olive gray secondary hues; very soft; shapeless, globular cuttings; silty to clayey texture; greasy luster; very soluble; slight to moderately expansive; poor cohesiveness; fair to good adhesiveness; non calcareous. Sand (2830' - 2860') = medium dark gray; fair sorted; upper very fine to coarse upper, dominant upper fine to lower medium; subround to angular; high to moderate sphericity; dominant quartz, 30% dark meta sedimentary lithics. Hilcorp Alaska, LLC Kalotsa 2 11 Coal (2875' - 2890') = black, gray brown; moderate hard; small angular brittle to blunt edge cuttings, slight mottled fracture includes non calcareous white blebs; minor argillaceous thin seams; subbituminous; resinous to dull. Calcilutite (2920’ - 2950') = dark bluish gray; hard; flaky to scaly, lesser blunt cuttings habit; microcrystalline, wacke mudstone with detrital silt; very slight delayed moderate effervescence to HCl. Tuffaceous Claystone (2950' - 2975') = medium to medium light gray; soft, smooth clayey to earthy tabular cuttings; moderate silty, arenaceous very fine grain sandstone intercalated; all liths include disseminated brown plant to black coal macerals, common in random orientation, more common breaks through open earthy fracture of massive bedded claystone; trace yellow orange weak calcareous microblebs; overall non calcareous. Coal (2980' - 3010') = brownish black to black; moderate hard, brittle; varied slight elongate to blunt small cuttings; mottled to irregular planar to fibrous subhackly fracture; includes common non calcareous white blebs on fractures. Tuffaceous Claystone (3050' – 3090’) = medium light to light gray; moderate pasty, soft to nodular moderate good cohesion; poor to slight adhesion; low density; hydrates, smooth clayey to slight silty texture; rare brown to black coal, plant macerals; thin interbeds sand. Sand (3090' - 3130') = light to dark gray; unconsolidated flour sand, very fine to fine; floating in host clay matrix; angular to subround; moderate to high sphericity; dominant quartz 10% lithics. Coal (3130' - 3160') = black; moderate hard, brittle; flaky fibrous to easy scored; irregular mottled to smooth fracture, white crystals on some. Tuff (3165' - 3175') = pale brown; small platy irregular cuttings, slight open curved habits from pdc bit; aphanitic with very fine phynocrysts; black to translucent; dull luster. Coal (3195' - 3220') = black; moderate hard, brittle to tough; subblocky, slight dense sub bituminous with smooth to mottled texture; some subconchoidal fracture; continued white crystals on fracture surfaces. Sandstone/ Sand (3200' - 3280') = dark gray to clear, cloudy to translucent; hard dense calcite cement sandstone with very fine to fine grain support, grade to silty calcalutite with very fine sand to unconsolidated; well sorted lobes; very fine to medium; unconsolidated sand dominant quartz, 10% dark lithics. Sandstone (3280' - 3340') = dark gray; hard, dense, blocky to scaly calcite cement sandstone with grain contacts dominant point to point; very well sorted; very fine to fine; subround to angular, dominant sub round; associated dark gray to dark bluish gray very finely silty, platy, hard calcilutite; thin bed structure; intercalated tuffaceous claystone, common thin lignitic to subbituminous coal stringers. Coal (3330' - 3370') = black to brownish black; moderate hard, crunchy to brittle; lignitic to sub bituminous; elongated slight mottled fracture, occasional planar; thin bedded; good visible outgassing at 3345'. Sand (3370' - 3400') = clear, translucent quartz flour sands with 10% dark lithics; very fine to fine; dominant very fine; subround to angular; high to moderate sphericity; floating in soft moderate colloidal clays. Tuffaceous Claystone (3400' - 3450') = medium light to pale bluish gray; soft, pasty to sectile; smooth clayey texture, occasional silty; nodular to tabular cuttings habit; low density; reactive hydrates with slight soluble; moderate to slight expansive; common black to brown plant to coal macerals; non calcareous. Hilcorp Alaska, LLC Kalotsa 2 12 Coal (3450' - 3480') = black; moderate hard, very brittle to slight tough; lignitic with irregular open to mottled fracture; resinous to waxy; very good outgassing. Tuffaceous Claystone/ Tuffaceous Siltstone (3480' - 3550') = medium to medium light gray with light gray secondary hue soft to moderately firm; irregular to wedge shaped with trace pdc bit action "scooped" appearance; silty to clayey texture; dull, earthy to slightly waxy luster; moderately soluble and expansive poor adhesiveness; fair cohesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions; trace thin coal beds. Tuffaceous Claystone/ Tuffaceous Siltstone (3550' - 3620') = medium to medium light gray with very light gray and light olive gray secondary hues; very soft to moderately firm; shapeless to wedge shaped with trace pdc bit action "scooped" appearance; silty to clayey texture; dull to earthy luster; hydrophilic; poor to fair cohesiveness and adhesiveness; trace to common dark brown to black microthin carbonaceous laminations and inclusions. Tuffaceous Claystone/ Tuffaceous Siltstone (3620' - 3670') = medium light to light gray with light olive gray secondary hues; very soft to occasionally firm shapeless, globular cuttings to rare wedge and pdc bit action shaped firmer pieces; silty to clayey texture; dull, earthy to greasy luster; hydrophilic; non calcareous. Coal (3670' - 3730') = black with brownish black and grayish black secondary hues; very firm to hard and brittle; flaky to platy, trace elongated; planar fracture dominant with trace conchoidal and birdeye; smooth to slightly silty texture; earthy to resinous luster; sub bituminous to bituminous with coal grading to a silty carbonaceous shale; trace weak outgassing bubbles observed. Sand/ Tuffaceous Sandstone (3730' – 3800’) = light to very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace light greenish gray and medium to dark gray; very fine lower to medium lower, dominantly fine lower; angular to subangular; moderately well to very well sorted; dominantly disaggregated with ashy supporting matrix common; very light gray to grayish white; fragile to pulverulent; non calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (3800' - 3860') = light gray to very light gray with light brownish gray and light yellowish gray secondary hues; soft to fragile; irregular cuttings; silty to slightly gritty texture; dull to earthy luster; moderately soluble and expansive; poor to fair cohesiveness; poor adhesiveness; non calcareous; light yellowish gray siltstone commonly grades between sandy siltstone and silty sandstone; very fragile to pulverulent. Tuffaceous Sandstone/ Sand (3860’ – 3920’) = very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace medium to dark gray and black; very fine lower to medium lower, dominantly fine; angular to subangular; moderately well to very well sorted; disaggregated with common ashy supporting matrix; grayish white with faint darker secondary hues; very fragile to pulverulent; non calcareous. Sand/ Tuffaceous Sandstone (3920' – 3980’) = light to very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace medium to dark gray, black and dusky red; very fine lower to medium lower, dominantly fine lower; angular to subangular; moderately well to very well sorted; dominantly disaggregated with ashy supporting matrix common; very light gray to grayish white; fragile to pulverulent; non calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (3980' - 4050') = medium to medium light gray with light gray secondary hue soft to moderately firm; irregular to wedge shaped with trace pdc bit action "scooped" appearance; silty to clayey texture; dull, earthy to slightly waxy luster; moderately soluble and expansive poor adhesiveness; fair cohesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions; trace thin coal beds. Hilcorp Alaska, LLC Kalotsa 2 13 Sand/ Tuffaceous Sandstone (4050' – 4100’) = light to very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace light greenish gray and medium to dark gray; very fine lower to medium lower, dominantly fine lower; angular to subangular; moderately well to very well sorted; dominantly disaggregated with ashy supporting matrix common. Sandstone/ Sand (4100' - 4210') = very light gray to light brown, occasional salt and pepper; clear, translucent to transparent quartz dominant with local common black lithics, occasional carbonaceous mater; fair well to well sorted; very fine to medium dominant; scattered coarse; fines in part to very well sorted very fine to fine lower with depth; dirty clayey matrix to white varied chalky slight indurated, dense grain overgrowth cement to soft smooth clayey orthomatrix with ashy appearance; tight point to long contact fabrics with unconsolidated sand common with clean polished to occasional frosted; dirty sandstone grades to sandy siltstone. Tuffaceous Claystone/ Siltstone (4210' - 4450') = light brownish gray to very light gray; dirty, argillaceous to poor cohesive smooth very silty to very finely sandy textures; nodular to tabular, occasional smooth to curved pdc markings; open earthy to crumbly soft, slight sectile; poor reactive; slacks in acid bath, pinpoint calcareous Coal (4230' - 4240') = pitch black; moderate hard; dense subbituminous, blocky to blunt small cuttings; weak adamantine lamina; resinous. Sandstone/ Sand (4240' - 4350') = light brown gray, salt and pepper to slight bluish white; translucent, clear to milky; very well to well sorted; very fine to medium; dominant very fine to fine; angular to subround; high to moderate sphericity; unconsolidated and loose; occasional frost, common polish to etched; cement rare calcite to more common white silicate varied overgrowth tight to orthomatrix clayey to sectile; dominant quartz; occasional black lithics; trace green accessory mineral, gray orange to carbonaceous mater. Sandstone/ Sand (4350' - 4470') = light brown gray, yellowish gray hues to dirty to clean grayish white; clear, translucent quartz dominant; <5% black, green to yellow; very well sorted; very fine to fine; round to subangular; high sphericity dominant; polished, occasional frost; clayey dirty matrix, silt supported to rare grain supported; orthomatrix white silicate; dirty interbeds light brown gray to medium light gray tuffaceous claystone/siltstone occasional include floating coal debris, also seen in thin sandstone beds; common unconsolidated and loose, disaggregated appearing rare. Tuffaceous Claystone/ Tuffaceous Siltstone (4470' - 4540') = light gray to light olive gray with medium light gray secondary hues; very soft to trace slightly firm; dominantly shapeless, globular cuttings with trace wedge shaped; silty to clayey to slightly gritty texture; dull, earthy luster; hydrophilic; moderately soluble; slight to moderately expansive; poor cohesiveness; poor to fair adhesiveness; non calcareous; light yellowish gray siltstone commonly grades between silty sandstone and sandy siltstone. Coal/ Carbonaceous Shale (4540' - 4600') = black with brownish black secondary hues; hard and brittle; flaky to splintery; platy to blocky; planar fracture dominant with abundant conchoidal and birdeye fracture present; smooth to slightly silty texture; resinous to earthy luster; well developed; bituminous with coal grading to carbonaceous shale; weak trace outgassing bubbles present. Tuffaceous Claystone/ Tuffaceous Siltstone (4600' - 4660') = light gray to light olive gray; very soft; very sticky; shapeless, globular cuttings; silty to clayey to slightly gritty texture; dull to greasy luster; hydrophilic; very soluble; moderately expansive; poor cohesiveness; fair to good adhesiveness; non calcareous; light yellowish gray siltstone grades between silty sandstone and sandy siltstone; very fragile; common to abundant coal beds throughout interval. Hilcorp Alaska, LLC Kalotsa 2 14 Sand/ Tuffaceous Sandstone (4660' - 4730') = very light gray overall with a faint yellowish brown secondary hue, individual grains dominantly clear to translucent quartz and volcanic glass, light green to light greenish gray, medium to dark gray and black; fine lower to fine upper, dominantly fine lower; angular to subangular; moderately well sorted; dominantly disaggregated with very light gray to grayish white ashy supporting matrix common; very fragile to pulverulent; non calcareous; trace thin coal beds. Sand/ Sandstone (4730' - 4790') = light gray to light olive gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace dark liths; very fine lower to medium lower, dominantly fine; angular to subangular; moderately well to well sorted; dominantly disaggregated with ashy supporting matrix common; yellowish gray sandstone commonly grades between sandy siltstone and silty sandstone; non calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (4790' - 4850') = light gray to light yellowish gray; soft; very sticky shapeless, globular cuttings; silty to clayey to slightly gritty texture; dull to earthy luster; hydrophilic; very soluble; moderately expansive; poor cohesiveness; fair to good adhesiveness; non calcareous; light yellowish gray siltstone grades between silty sandstone and sandy siltstone; non calcareous. Coal/ Carbonaceous Shale (4850' - 4900') = black; finely ground up cuttings; firm to hard and brittle; flaky; planar fracture with trace conchoidal and birdeye; smooth texture; resinous to slightly earthy luster; bituminous; weak trace outgassing bubbles present; coal commonly grades to a silty carbonaceous shale; grayish black; firm; silty in part. Sand/ Tuffaceous Sandstone/ Conglomerate (4900' - 4980') = light gray with light olive gray and light yellowish gray secondary hues overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace medium to dark gray to greenish gray; very fine lower to very coarse upper, dominantly fine lower to medium upper; angular to subangular; poorly sorted; disaggregated with very light grayish white ashy supporting matrix common; light yellowish gray sandstone commonly grades between silty sandstone and sandy siltstone; non calcareous. Sand/ Tuffaceous Sandstone/ Conglomerate (4980' - 5040') = light to very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, light to dark gray, black and light green; very fine lower to very coarse upper with 3mm pebbles, dominantly fine lower to medium upper; angular to subangular, trace subrounded; poorly sorted; dominantly disaggregated with very light gray to grayish white ashy supporting matrix; very fragile to pulverulent; non to slightly calcareous. Sandstone (5040' - 5110') = very light gray to grayish white; peppery appearance; very well to fair sorted; dominant very fine to fine; trace coarse-medium; angular to subround; high sphericity; white, tight overgrowth cement varied silicate, pinpoint calcareous to point to point contact fabric; disaggregated sands, common etched to frosted. Claystone (5000' - 5125') = moderate brown gray; firm friable; low density; smooth pdc curved to nodular habits; silty texture, very fine carbonaceous mater. Coal (5125' - 5140') = pitch black; hard; brittle to tough, crunchy; smooth to thinly laminar texture; sub conchoidal to subplanar fracture; resinous to dull; trace visible outgassing. Tuffaceous Siltstone (5140' - 5170') = light brown gray, yellow gray to grayish white hues; firm to hydrated, easy to soft friable; very finely silty texture, occasionally includes very thin color mottle ashy silt, suspended in colloidal clay to some grain support with some lower very fine sand. Hilcorp Alaska, LLC Kalotsa 2 15 Sandstone (5170' - 5270') = very light to light brownish gray, gray white common very fine detrital carbonaceous mater; very well to well sorted; very fine to medium, trace very coarse to coarse; dominant very fine to fine; subangular to subround; moderate to high sphericity; grain supported to varied tight to soft white ashy to chalky cement; common interbeds coal, associated increase in carbonaceous mater; occasional green chlorite. Coal (5275' - 5290') = black to brownish black; hard to moderate hard; gritty to smooth texture; subconchoidal to splintery; sub bituminous; resinous to dull; trace visible outgassing. Sandstone (5290' - 5320') = grayish white to very light brown gray; easy to hard friable; very well sorted; lower very fine to fine lower; subangular to subround; high sphericity; dominant quartz; cement overgrowths, etch to frosting, varied soft clayey to tight, calcareous. Sandstone/ Sand (5320' - 5380') = light brown gray to bluish white; translucent, milky to clear quartz; easy friable to unconsolidated; grain supported, clayey in part; very well sorted; very fine to medium; dominant very fine upper to lower fine; subround to subangular; high sphericity; polished to pitted. Coal (5380' - 5410') = pitch black, trace gray brown; hard, moderate dense; smooth to rare gritty to lesser laminar texture; subconchoidal to subblocky fracture; light brown plant debris. Sandstone/ Sand (5410' - 5470') = light brown gray, gray white; very well to well sorted; fining down from very fine lower to medium lower to very fine lower to fine lower; unconsolidated and loose to easy friable, varied dirty to grain supported; includes dominant quartz, occasional tight silicate overgrowth cement long to point contacts; calcareous; interbeds very finely sandy argillaceous tuffaceous siltstone. Tuffaceous Sand (5485' - 5530') = gray white, green to blue hue; fairly well sorted; very fine to coarse upper; dominant very fine upper to fine upper; subangular to subround; high sphericity; framework quartz; cement orthomatrix colloidal ash-disaggregated tight quartz overgrowth cement; good visual porous. Conglomeratic/ Tuffaceous Sandstone (5530' - 5620') = marbled bluish white to multi plutonic lithic in yellow to bluish white varied overgrowth cement to frosted, to etched sandstone with hard friable, flaky cuttings; unconsolidated and loose to dominant held in varied soft ashy matrix to occasional easy friable with good disseminated coal when fining near prominent coal bed; conglomerate ranged granule to very fine, dominant medium; fines in turn adjacent and underlying coal, to very fine to medium; very poor to well sorted. Tuffaceous Sandstone/ Sand/ Sandstone (5620' - 5710') = very light gray with very light olive gray secondary hues overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace light to dark gray and black; very fine lower to trace very coarse upper, dominantly fine; angular to subangular; moderately well supported; very loosely consolidated with grayish white ashy matrix; very fragile; moderately calcareous; very light yellowish gray to light olive gray sandstone; very fine; fragile to soft; commonly grades between sandy siltstone and silty sandstone; non calcareous. Coal (5710' - 5750') = black with brownish black secondary hues; hard; brittle at times; flaky to massive; planar fracture with conchoidal and birdeye common; smooth texture; resinous luster; very well developed; bituminous; no to weak trace outgassing bubbles observed. Tuffaceous Siltstone/ Tuffaceous Claystone (5750' - 5840') = light brownish gray to light olive gray with light brown secondary hues, occasionally medium to medium light gray; soft to slightly firm; irregular, shapeless cuttings; silty to clayey to slightly gritty texture; dull, earthy luster; hydrophilic; moderately soluble; slightly expansive; poor cohesiveness; poor to fair adhesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions; light yellowish gray siltstone commonly grades between sandy siltstone and silty sandstone; soft to firm; irregular shaped; abundant coal beds throughout interval. Hilcorp Alaska, LLC Kalotsa 2 16 Sand/ Sandstone (5840' - 5910') = very light gray to very light brownish gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace medium to dark gray and black; very fine lower to fine upper, dominantly fine lower; angular to subangular; very well sorted; dominantly unconsolidated with soft sandstone; very light olive gray to light brownish gray; grades between silty sandstone and sandy siltstone; non calcareous; abundant coal beds throughout interval. Sand/ Tuffaceous Sandstone (5910' - 5970') = very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace medium to dark gray to greenish gray; very fine lower to medium lower, dominantly fine lower to upper; angular to subangular moderately well sorted; very loosely supported with very ashy supporting matrix; very fragile to pulverulent; non calcareous. Sand/ Tuffaceous Sandstone (5970' - 6020') = very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace medium to dark gray and black; very fine lower to medium lower, dominantly fine; angular to subangular; very well sorted; very loosely consolidated with very light grayish white ashy matrix; very fragile; non calcareous. Tuffaceous Siltstone/ Tuffaceous Claystone (6020' - 6100') = light brownish gray to light olive gray with light brown secondary hues; soft to slightly firm; shapeless to trace pdc bit action shaped; silty to clayey to slightly gritty texture; dull, earthy luster; hydrophilic; moderately soluble; slightly expansive; poor cohesiveness; poor to fair adhesiveness; non calcareous; light yellowish brown siltstone grades between sandy siltstone and silty sandstone; slightly firm to soft; fragile; non calcareous. Tuffaceous Sandstone/ Sand/ Conglomerate (6100' - 6160') = very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace light to dark gray, black and orange; very fine lower to very coarse upper, dominantly fine lower to medium upper; angular to subangular with trace subrounded, poorly sorted; very loosely consolidated with grayish white ashy matrix; very fragile; non calcareous; trace thin coal beds. Sand/ Sandstone (6160' - 6220') = very light gray to very light brownish gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace medium to dark gray and black; very fine lower to fine upper, dominantly fine lower; angular to subangular; very well sorted; dominantly unconsolidated with soft sandstone; very light olive gray to light brownish gray; grades between silty sandstone and sandy siltstone; non calcareous. Tuffaceous Siltstone (6220'-6250') = medium light gray with light brown hues; soft, clayey to friable arenaceous very fine sandy texture; includes colloidal ash occasionally soft clayey grades to smooth slight expansive claystone. Sandstone (6250' - 6345') = light brown light gray, bluish white; easy to soft friable, hydrated clay to bit generated chalky matrix supported; rare hard dense, occasional dense grain supported with common yellow organic blebs, black carbonaceous mater; very well to well sorted; very fine to medium; dominant very fine; by 6280' marked change to soft clayey/ashy matrix continued very fine to medium with dominant fine, good solution frost to etching; trace quartz overgrowths; dominant quartz; by 6310' increase intercalated siltstone, coal traces, common detrital coal in very fine to fine grain sandstones; weak calcareous, trace conglomeratic to very coarse. Tuffaceous Siltstone (6345' - 6400') = medium to light brown gray; firm friable to soft clayey; finely arenaceous with common detrital coal debris, very fine sand grades to silty sandstone, interbedded grain supported very fine grain dirty to easy friable sandstones, common thin black to brownish black coal stringers, dirty sub bituminous to bituminous, good to poor outgassing. Tuffaceous Sandstone (6400' - 6440') = light bluish white, translucent, clear trace black, green to brown; very well to well sorted; very fine to medium; dominant fine to very fine; angular to sub round; moderate to low sphericity; frosted, etched; occluded in part with chalky to clayey cement; non calcareous. Hilcorp Alaska, LLC Kalotsa 2 17 Coal (6440' - 6510') = pitch black; hard, brittle to tough; splintery subconchoidal to blunt edged fracture, smooth; bituminous; weak adamantine to resinous luster; trace plant debris; good outgas. Sandstone (6510' - 6550') = medium light to very light gray; easy friable, silty to loosely cemented with white silicate, lesser ash; well sort; very fine to fine grains; subround to subangular; high sphericity; very silty grade to siltstone. Coal (6550' - 6595') = black to very dark gray; laminar 2-3 mm to smooth waxy to greasy; subconchoidal to blunt, common splintered fracture; moderate hard, brittle to tough; resinous to dull; subbituminous; turbid carbonaceous shale associated; moderate outgas. Tuffaceous Sandstone/ Sand (6595' - 6660') = very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace darker liths; very fine lower to trace medium lower, dominantly fine; angular to subangular; very well sorted; very loosely consolidated with ashy matrix; very soft, mushy to crunchy; very light grayish white; non calcareous. Tuffaceous Siltstone/ Tuffaceous Claystone (6660' - 6720') = light brownish gray to light olive gray with yellowish brown secondary hues; soft to slightly firm; irregular to shapeless globular cuttings; silty to clayey to slightly gritty texture; dull, earthy luster; moderately soluble; slightly expansive; poor cohesiveness; poor to fair adhesiveness; non calcareous; light yellowish brown siltstone grades between sandy siltstone and silty sandstone; trace thin coal beds. Coal (6720' - 6780') = black with brownish black and grayish black secondary hues; hard to brittle; flaky, finely ground up cuttings; platy to blocky and massive; planar fracture dominant with abundant conchoidal and birdeye; smooth texture; resinous to slightly earthy luster; very well developed; bituminous; prolonged outgassing bubbles observed. Sandstone/ Sand (6780' - 6860') = light gray with a salt and pepper appearance; hard; fine to medium; angular to subangular; moderately well sorted; well consolidated with moderately calcareous cement; present in minor amounts in dominantly very fine sandstone/ siltstone formation; light brown to light olive gray; soft; fragile; sandstone commonly grades between silty sandstone and sandy siltstone; non calcareous; trace to common thin coal beds throughout interval. Sand (6860' - 6895') = very light gray overall, individual grains dominantly clear to translucent quartz and volcanic glass, trace amounts of light to dark gray, black, light green to greenish gray and dusky red; very fine lower to fine upper, dominantly fine lower; angular to subangular; very well sorted; unconsolidated with trace very weak ash supporting matrix; non calcareous. Sandstone/ Sand (6895' - 6960') = light gray to very light brownish gray with very light yellowish gray secondary hues overall with individual grains dominantly clear to translucent quartz and volcanic glass; very fine lower to fine upper, dominantly fine lower; angular to subangular; well sorted; dominantly disaggregated with yellowish brown silty supporting matrix; soft; non calcareous; sandstone commonly grades between silty sandstone and sandy siltstone; trace to common thin coal beds. Coal/ Carbonaceous Shale/ Carbonaceous Sandstone (6970' - 7090') = coal: black to medium dark gray, trace fractured with thin dark gray orange to yellow gray calcilutite, dolomitic marl; hard, tough to brittle; laminar 3-9 mm bituminous to subbituminous; blunt edged, planar to blocky fracture; occasional good outgas; carbonaceous shale: light to moderate brown gray; very firm, crunchy to common grainy dirty marly; disseminated black coal macerals, ripups; calcareous to argillaceous grades to claystone in part; carbonaceous sandstone; varied medium to medium light gray with some clean very light gray calcareous cement beds; moderate hard friable; blocky to tabular, scaly; grain supported includes very fine, very fine to medium very well to well sorted members with adjacency to coals contributing floating angular coal clasts to a quartz framework; black to yellow lithics common sedimentary include limestone; common grades to medium to medium light gray siltstone. Hilcorp Alaska, LLC Kalotsa 2 18 Sandstone/ Tuffaceous Sandstone/ Sand (7090' - 7210') = initial dirty light brown clay matrix holding clear, translucent quartz, 2% lithics with very fine to medium lower to 7105' with a black thin bedded bituminous coal seam and increase easy friable carbonaceous sandstone intercalated; from 7105'-7145' sandstone/ sand is ashy white tuffaceous to laumonite cemented with fair sorting initial upper very fine to medium lower becomes slightly coarser and dominant medium lower to upper fine, with scattered very coarse to coarse; sand slight more lithic rich to 4%, green mica trace calcite, continued dominant quartz with occasional plagioclase; increase disaggregated with heavy chalky white overgrowth cement, moderate frosting to increase polish; dirty silty increase argillaceous mater around thin coal stringers and calcareous cement by 7295'; upper section weak calcareous. Sandstone/ Tuffaceous Siltstone (7210' - 7270') = medium to medium light gray, grayish white; very fine grain supported graded sandy siltstone to sandstone; very well sorted; very fine to fine; limey to carbonaceous; flaky to blocky cuttings habit; thin interbed white to peppered hard calcite cement to lesser white laumonite/ashy sandstone. Sandstone/ Sand (7270' - 7375') = medium light gray to increasingly grayish white by 7310', includes yellow gray silty to sandy calcilutite, calcareite, become massive grayish white conglomeratic with good cement overgrowths, common tight calcite bones to unconsolidated from easy friable ash matrix; dolomite in pores, calcite near thin coal interbed at 7305'; range well to increasingly poor to very poor sorted; very fine to medium coarsens down to very fine to upper very coarse with dominant upper fine to upper medium; very angular to subround; frosted to polished with common etching; impacted textures common; lithics, green accessory minerals appear granitic to felsic volcanic; dominantly quartz; calcareous. Sandstone (7375' - 7420') = medium light very light gray, gray white, black to yellow gray; varied slightly dirty very fine grain support to clean white ash/chalky silicate cement; fairly well to poor sorted; very fine to coarse lower, dominant fine upper to medium upper; subround to angular; moderate to high sphericity; good overgrowth long contact fabric to dense point contacts when fines; dominant quartz; common plutonic to felsic volcanics; calcareous to slight limey. Coal (7430' - 7480') = pitch black to very dark gray; hard to moderate hard; smooth to waxy texture, lesser slight gritty, rare silty lens; thin laminar 2-5 mm bands, color variation; varied blunt blocky to irregular subconchoidal fracture; good visible outgas; trace brown plant debris. Tuffaceous Sandstone/ Sand (7480' - 7570') = very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace darker liths; very fine lower to trace medium lower, dominantly fine; angular to subangular; very well sorted; very loosely consolidated with ashy matrix; very soft; very light grayish darker secondary hues; non calcareous; light brown to yellowish gray sandstone; very fine to fine; well sorted; fragile; commonly grades between sandy siltstone and silty sandstone; non calcareous. Tuffaceous Sandstone/ Sand (7570' - 7650') = very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace darker liths; very fine lower to trace medium lower, dominantly fine; angular to subangular; very well sorted; very loosely consolidated with ashy matrix; very soft; mushy to crunchy; very light grayish white; fragile to pulverulent; non calcareous. Sand/ Tuffaceous Sandstone (7650' - 7710') = very light gray overall with ashy matrix; grayish white with a mottled appearance from abundant very faint secondary hues; individual grains dominantly clear to translucent quartz and volcanic glass, trace light to dark gray, black, light green and pale rose; very fine lower to very coarse upper, dominantly fine upper to medium upper; angular to subangular; poorly sorted; very loosely consolidated with ashy matrix; very fragile to pulverulent; non calcareous. Hilcorp Alaska, LLC Kalotsa 2 19 Sand/ Tuffaceous Sandstone/ Conglomerate (7710' - 7780') = light gray overall with a mottled appearance from ashy matrix, individual grains dominantly clear to translucent quartz and volcanic glass, light to dark gray and black; very fine lower to very coarse upper with pebbles to 10mm, dominantly medium; angular to subrounded, dominantly subangular; poorly sorted; unconsolidated to very loosely supported with very fragile ash matrix; grayish white with faint gray, brown and greenish gray secondary hues; pulverulent; non calcareous. Coal (7780' - 7830') = black; finely ground up cuttings; platy to flaky and blocky; planar fracture dominant with abundant conchoidal and birdeye; smooth texture; resinous to slightly earthy luster; very well developed; bituminous; trace outgassing bubbles observed. Tuffaceous Sandstone (7830' - 7910') = marbled bluish white, milky, translucent to vitreous; chalky firm to easy friable, minor soft ashy clay matrix; very poor to poor sorted; very fine to very coarse; very angular to subround; moderate to high sphericity; occluded white chalky cement overgrowths, occasional long contact fabric; disaggregated loose sand common overgrowths, frosting to etched; dominant quartz, common plagioclase, 5% lithics dominant granitic occasional felsic volcanics, green accessory minerals; pinpoint calcareous, trace calcite cement, trace limestone. Sandstone (7910' - 7980') = very light to medium light gray, gray white to yellow gray; varied cement, calcite to dense grain supported to laumonite cement; very angular to subround; common long to point contact fabrics; tight calcite cement, lesser limestone clasts thin interbed; common thin coals; fair to well sorted; very fine to fine upper dominant, range very fine to coarse lower, trace very coarse; thin interbeds; tuffaceous siltstone include blue ash. Coal (7980' - 8020') = black to dark brown gray; vitreous adamantine bituminous with occasional dirty lams to more common 5 mm banded very smooth to shiny; conchoidal fracture to blocky to shattered irregular blunt shards; trace laminar sandstone lens; thin to thick bedded, interbeds sandstone common include clear, vitreous sand. Sandstone (8020' - 8050') = light yellow brown, gray white to medium light gray; varied limey associated with thin grainy to micrite limestone beds, grades to medium light gray siltstone, contains both sandy limey lens; very fine to coarse upper; dominant lower fine to medium lower; thin carbonaceous beds. Tuffaceous Sandstone (8050' - 8150') = very light gray, gray white; moderate hard to easy friable; chalky white heavy overgrowths silicate cement, floating point to occasional long contact fabric to unconsolidated with good frosting, etching and cement; very poor to fairly well sorted; granule, very coarse traces very fine to coarse upper dominant upper fine to upper medium; very angular to subround; moderate to high sphericity; very angular, impacted lithics, lithic quartz plutonic sourced, dominant quartz, common plagioclase; greenish chlorite micas accessory. Tuffaceous Sandstone (8150' - 8200') = very light gray, gray white; cemented chalky white, overgrowths to disaggregated well to fair sorted; very fine to coarse upper; dominant upper very fine to fine upper; subround to angular; high sphericity; scattered calcareous effervescence to hcl; dominant quartz. Hilcorp Alaska, LLC Kalotsa 2 20 3.3 Sampling Program Set Type and Purpose Interval Frequency Distribution 1 Washed and Dried Reference 1388’ – 8200’ 30’ Jacob Dunston Hilcorp Alaska LLC 3800 Center Point Drive, Suite 100 Anchorage, AK 99508 2 Washed and Dried Reference 1388’ – 8200’ 30’ Jacob Dunston Hilcorp Alaska LLC 3800 Center Point Drive, Suite 100 Anchorage, AK 99508 3 Washed and Dried Reference 1388’ – 8200’ 30’ Jacob Dunston Hilcorp Alaska LLC 3800 Center Point Drive, Suite 100 Anchorage, AK 99508 4 Washed, wet coal samples 3672’, 4598’, 5290’ Spot sample Jacob Dunston Hilcorp Alaska LLC 3800 Center Point Drive, Suite 100 Anchorage, AK 99508 Hilcorp Alaska, LLC Kalotsa 2 21 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) 18.00 0.00 0.00 18.00 0.00 0.00 0.00 0.00 296.67 0.34 350.29 296.67 0.81 -0.14 0.81 0.12 350.98 0.30 2.63 350.98 1.12 -0.16 1.09 0.14 416.72 0.31 1.88 416.72 1.47 -0.15 1.41 0.01 447.46 0.40 342.25 447.46 1.65 -0.18 1.59 0.49 509.57 0.76 31.27 509.57 2.21 -0.03 2.05 0.93 571.04 0.25 29.29 571.03 2.68 0.25 2.37 0.82 632.48 0.47 21.91 632.47 3.03 0.41 2.64 0.36 694.88 0.31 36.51 694.87 3.40 0.60 2.91 0.29 757.59 0.31 50.34 757.58 3.65 0.84 3.04 0.12 818.79 0.46 31.14 818.78 3.96 1.09 3.23 0.32 880.17 0.19 66.82 880.15 4.21 1.31 3.38 0.53 945.38 0.18 14.97 945.36 4.35 1.43 3.46 0.25 1008.21 0.46 354.86 1008.20 4.70 1.43 3.78 0.47 1070.15 0.52 352.56 1070.13 5.23 1.37 4.29 0.11 1132.69 0.46 355.19 1132.67 5.76 1.32 4.80 0.11 1195.57 0.43 36.01 1195.55 6.20 1.43 5.17 0.50 1256.79 0.50 45.00 1256.77 6.58 1.76 5.39 0.16 1319.33 0.52 49.32 1319.30 6.96 2.17 5.58 0.07 1347.87 0.37 56.75 1347.84 7.09 2.34 5.64 0.57 1384.98 0.26 54.60 1384.95 7.20 2.51 5.68 0.30 1450.26 0.45 103.86 1450.23 7.23 2.88 5.56 0.52 1512.89 0.43 114.04 1512.85 7.07 3.33 5.24 0.13 1574.60 0.62 107.54 1574.56 6.88 3.86 4.85 0.31 1637.82 1.47 2.42 1637.78 7.58 4.22 5.37 2.74 1699.90 3.05 342.62 1699.81 9.96 3.76 7.73 2.80 1761.95 5.32 339.30 1761.69 14.22 2.25 12.25 3.68 1824.56 7.46 334.92 1823.91 20.62 -0.50 19.21 3.50 1887.24 9.57 335.87 1885.90 29.06 -4.35 28.48 3.38 1949.75 11.29 336.43 1947.37 39.40 -8.92 39.79 2.75 2012.75 12.85 335.22 2008.97 51.41 -14.32 52.96 2.51 2073.29 14.54 332.56 2067.79 64.27 -20.65 67.26 2.99 2135.05 16.35 333.12 2127.32 78.90 -28.15 83.66 2.93 2196.51 17.52 333.61 2186.12 94.91 -36.17 101.51 1.92 2258.22 18.66 334.18 2244.77 112.11 -44.60 120.64 1.87 Hilcorp Alaska, LLC Kalotsa 2 22 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) 2319.66 20.19 335.37 2302.72 130.60 -53.30 141.05 2.57 2381.63 21.80 335.49 2360.57 150.79 -62.53 163.24 2.60 2442.32 24.23 337.00 2416.42 172.50 -72.08 186.96 4.12 2506.32 24.90 337.23 2474.64 197.02 -82.42 213.56 1.07 2567.94 25.54 336.95 2530.38 221.20 -92.64 239.82 1.04 2630.83 24.32 337.34 2587.41 245.62 -102.94 266.32 1.96 2692.74 24.73 336.59 2643.73 269.27 -112.99 292.01 0.84 2754.50 22.80 336.44 2700.26 292.09 -122.91 316.90 3.13 2818.81 22.84 335.52 2759.53 314.87 -133.06 341.83 0.56 2880.41 23.08 335.14 2816.26 336.71 -143.09 365.85 0.45 2942.28 23.25 335.00 2873.14 358.78 -153.35 390.17 0.30 3003.99 22.35 336.99 2930.03 380.62 -163.09 414.07 1.93 3065.69 22.25 336.87 2987.11 402.16 -172.26 437.48 0.17 3128.35 22.60 336.34 3045.03 424.10 -181.75 461.38 0.64 3189.44 22.71 335.77 3101.41 445.60 -191.31 484.91 0.41 3252.34 22.73 334.79 3159.43 467.67 -201.47 509.19 0.60 3314.19 23.16 338.63 3216.39 489.81 -210.99 533.29 2.51 3376.37 23.39 338.44 3273.51 512.67 -219.98 557.85 0.40 3437.54 23.75 338.29 3329.58 535.41 -229.00 582.31 0.59 3500.95 23.98 337.88 3387.56 559.21 -238.57 607.96 0.46 3564.52 24.45 337.51 3445.54 583.33 -248.47 634.03 0.77 3627.13 24.88 337.18 3502.44 607.44 -258.53 660.16 0.72 3689.22 25.33 336.92 3558.66 631.70 -268.80 686.50 0.75 3752.32 24.81 338.34 3615.82 656.42 -278.98 713.23 1.26 3812.62 23.77 338.46 3670.78 679.48 -288.11 738.03 1.74 3874.12 23.96 337.80 3727.03 702.57 -297.38 762.91 0.54 3936.13 24.10 337.92 3783.67 725.95 -306.89 788.15 0.24 3998.98 24.24 337.54 3841.00 749.76 -316.64 813.88 0.33 4061.13 24.16 337.74 3897.69 773.33 -326.34 839.36 0.18 4123.25 24.18 337.08 3954.37 796.81 -336.11 864.80 0.44 4185.04 24.02 336.45 4010.77 820.00 -346.06 890.03 0.49 4247.83 24.25 338.32 4068.07 843.69 -355.93 915.70 1.27 4308.85 24.04 338.19 4123.75 866.87 -365.18 940.65 0.36 4370.97 24.05 337.54 4180.48 890.32 -374.72 965.96 0.42 4433.20 24.11 336.97 4237.29 913.73 -384.53 991.35 0.39 4496.38 24.24 336.76 4294.94 937.53 -394.70 1017.22 0.25 4558.25 24.57 336.00 4351.28 960.95 -404.94 1042.78 0.74 4620.27 23.86 338.33 4407.84 984.39 -414.82 1068.22 1.92 4681.99 23.83 338.01 4464.29 1007.55 -424.10 1093.17 0.22 Hilcorp Alaska, LLC Kalotsa 2 23 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) 4745.10 24.15 337.65 4521.95 1031.31 -433.78 1118.82 0.56 4808.19 23.93 337.77 4579.57 1055.10 -443.53 1144.53 0.35 4870.81 23.81 337.12 4636.83 1078.50 -453.25 1169.87 0.46 4933.31 24.00 336.62 4693.97 1101.79 -463.19 1195.19 0.45 4995.76 24.17 336.14 4750.98 1125.14 -473.41 1220.67 0.42 5059.39 23.88 338.49 4809.10 1149.04 -483.40 1246.58 1.57 5121.93 23.56 338.50 4866.36 1172.45 -492.62 1271.73 0.52 5182.56 23.23 337.93 4922.00 1194.80 -501.56 1295.80 0.67 5245.34 23.14 337.88 4979.71 1217.70 -510.85 1320.51 0.14 5307.67 22.85 337.57 5037.09 1240.23 -520.08 1344.87 0.50 5369.48 22.93 337.40 5094.03 1262.44 -529.29 1368.91 0.16 5431.74 22.81 336.84 5151.40 1284.74 -538.70 1393.11 0.40 5491.15 22.52 338.15 5206.22 1305.88 -547.46 1416.00 0.97 5553.83 22.84 337.71 5264.05 1328.28 -556.54 1440.16 0.57 5615.63 22.73 337.33 5321.03 1350.40 -565.69 1464.10 0.29 5677.40 22.69 336.91 5378.01 1372.37 -574.96 1487.94 0.27 5739.75 22.64 336.07 5435.55 1394.40 -584.55 1511.97 0.53 5801.53 22.11 335.39 5492.68 1415.84 -594.22 1535.48 0.96 5863.33 21.77 335.34 5550.00 1436.84 -603.85 1558.56 0.55 5925.34 20.79 338.17 5607.78 1457.50 -612.74 1581.06 2.29 5988.29 20.43 338.67 5666.70 1478.11 -620.89 1603.22 0.63 6053.15 18.47 335.79 5727.85 1498.03 -629.22 1624.81 3.36 6115.70 17.90 337.40 5787.28 1515.95 -636.98 1644.33 1.22 6179.08 16.37 337.83 5847.84 1533.21 -644.09 1663.00 2.43 6240.04 14.67 337.51 5906.58 1548.30 -650.29 1679.32 2.78 6302.85 13.19 338.25 5967.54 1562.31 -655.99 1694.44 2.38 6365.42 12.17 339.70 6028.58 1575.12 -660.92 1708.16 1.71 6428.79 10.16 339.01 6090.75 1586.61 -665.24 1720.43 3.17 6485.94 9.94 337.97 6147.02 1595.89 -668.90 1730.40 0.51 6552.97 8.98 336.93 6213.14 1606.06 -673.11 1741.41 1.45 6615.68 8.92 334.95 6275.09 1614.96 -677.09 1751.16 0.50 6677.36 7.50 336.56 6336.13 1622.99 -680.72 1759.96 2.33 6738.18 6.34 338.26 6396.51 1629.75 -683.54 1767.29 1.94 6799.63 5.11 333.18 6457.65 1635.34 -686.03 1773.41 2.16 6863.88 3.81 329.99 6521.71 1639.74 -688.39 1778.38 2.06 6925.24 3.58 327.64 6582.94 1643.12 -690.43 1782.29 0.45 6987.61 2.22 322.56 6645.23 1645.73 -692.21 1785.37 2.21 7049.24 1.22 296.18 6706.83 1646.97 -693.52 1787.02 2.04 7110.77 1.20 282.04 6768.35 1647.39 -694.74 1787.88 0.48 Hilcorp Alaska, LLC Kalotsa 2 24 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) 7173.08 1.33 283.12 6830.65 1647.69 -696.08 1788.68 0.21 7236.04 1.44 284.35 6893.58 1648.05 -697.55 1789.58 0.18 7297.66 0.80 264.93 6955.19 1648.20 -698.73 1790.18 1.19 7359.16 0.65 266.49 7016.69 1648.14 -699.50 1790.42 0.24 7421.26 0.83 261.37 7078.78 1648.05 -700.30 1790.65 0.31 7484.75 1.03 271.21 7142.26 1648.00 -701.33 1790.99 0.39 7544.50 1.35 269.18 7202.00 1648.00 -702.57 1791.47 0.54 7607.15 1.90 269.63 7264.63 1647.98 -704.34 1792.14 0.89 7669.10 0.82 278.20 7326.56 1648.04 -705.81 1792.76 1.77 7731.37 0.37 340.78 7388.83 1648.29 -706.32 1793.19 1.17 7793.12 0.18 260.96 7450.58 1648.47 -706.49 1793.42 0.63 7854.79 0.17 253.62 7512.24 1648.43 -706.67 1793.45 0.04 7916.55 0.17 275.08 7574.01 1648.41 -706.85 1793.50 0.10 7978.81 0.51 264.52 7636.26 1648.39 -707.22 1793.63 0.55 8041.15 0.90 269.63 7698.60 1648.36 -707.99 1793.90 0.63 8103.06 0.86 257.98 7760.50 1648.26 -708.93 1794.17 0.29 8155.52 1.01 263.30 7812.96 1648.13 -709.77 1794.37 0.32 **8200.00 1.01 263.30 7857.43 1648.03 -710.55 1794.58 0.00 **Proj Hilcorp Alaska, LLC Kalotsa 2 25 4.2 Bit Record BIT NO. SIZE TYPE S/N JETS/ TFA IN OUT Feet Drille d HRS AVE ROP (Ft/HR) CONDITION 1 9 7/8” Smith MSi519 JF9781 2x13, 3x15 112’ 1388’ 1276’ 9.2 138.7 2-3-CT-G-X-1/16-WT-TD 2 6 ¾” HDBS MM65D 12396253 6x10 1388’ 1408’ 20’ .25 80 PLUGGED BHA 2RR 6 ¾” HDBS MM65D 12396253 6x10 1408’ 8200 6792’ 72.5 93.7 1-3-LT-G-X-I-WT-TD Hilcorp Alaska, LLC Kalotsa 2 26 4.3 Mud Record Contractor: Baroid Date Depth MW (ppg) VIS (s/qt) PV YP Gels FL (cc) FC Sols (%) O/W Ratio Sd (%) MBT pH Cl (mg/l) Ca (mg/l) MD (ft) TVD (ft) Spud Mud 1/6/17 344 344 8.85 240 52 56 22/55/68 10.2 2/0 3.7 0/96.0 0.10 20.0 9.0 1000 1/7/17 1388 1388 9.05 76 29 26 6/16/29 8.6 2/0 5.1 0/94.6 0.10 15.0 8.3 1000 1/8/17 1388 1388 9.1 56 29 12 4/7/10 7.0 1/0 5.4 0/94.3 0.10 12.0 7.8 800 1/9/17 1388 1388 9.1 57 26 16 4/7/9 7.4 1/0 5.4 0/94.3 0.10 12.0 7.7 800 1/10/17 1388 1388 9.1 57 29 11 4/7/9 7.4 1/0 5.4 0/94.3 0.10 12.0 7.4 800 1/11/17 1388 1388 9.0 65 30 18 8/12/16 7.0 1/0 4.7 0/95.0 0.10 12.0 9.8 800 600 6% KCl Polymer 1/11/17 1388 1388 9.0 51 9 15 6/9/10 5.6 ½ 2.1 0/95.0 9.6 35000 160 1/12/17 1626 1626 9.0 62 10 20 8/12/16 4.8 1/2 2.1 0/95.0 0.10 10.0 35000 120 1/13/17 3047 2969 9.1 64 13 20 6/8/9 4.0 1/2 3.0 0/94.2 0.10 1.0 10.3 35000 60 1/14/17 4368 4177 9.1 59 13 17 6/7/8 3.8 1/2 3.1 0/94.2 0.10 2.0 10.3 33800 80 1/15/17 5305 5037 9.2 56 12 19 6/8/11 3.8 1/2 3.5 0/93.6 0.10 3.0 10.2 35000 100 1/16/17 6326 5990 9.35 54 11 20 7/8/10 4.1 1/2 3.9 .1/93.1 0.10 3.0 10.2 35000 120 1/17/17 7064 6722 9.35 57 13 17 6/7/9 3.7 1/2 3.9 0/93.2 0.10 3.2 10.4 35000 200 1/18/17 8022 7679 9.35 54 14 17 6/7/9 4.2 1/2 3.9 0/93.2 0.10 3.5 10.3 35000 80 1/19/17 8200 7857 9.6 56 13 19 7/8/10 4.0 1/2 5.3 0/91.9 0.10 3.5 10.2 35000 40 1/20/17 8200 7857 9.62 76 15 28 11/15/20 4.1 ½ 5.3 0/92.0 0.10 3.5 10.0 34000 40 1/21/17 8200 7857 9.6 86 15 26 10/14/19 4.2 ½ 5.3 0/92.0 0.10 3.5 9.8 34000 40 1/22/17 8200 7857 9.62 85 14 28 9/15/18 4.2 ½ 5.3 0/92.0 0.01 3.5 9.4 34000 40 1/23/17 8200 7857 9.62 62 13 22 7/10/13 5.2 ½ 5.2 0/92.0 0.01 3.5 10.0 35000 40 1/24/17 8200 7857 9.6 50 12 19 7/9/12 4.4 ½ 5.8 0/91.8 0.25 4.3 9.8 30000 60 Abbreviations: MW = Mud Weight VIS = Funnel Viscosity PV = Plastic Viscosity YP = Yield Point Gels = Gel Strength FL = Water or Filtrate Loss FC = Filter Cake O/W = Oil to Water ratio Sols = Solids Sd = Sand content MBT = Methylene Blue Alk, Pm = Alkalinity, Mud pH = Acidity Cl = Chlorides Ca = Hardness Calcium nr = Not Recorded Hilcorp Alaska, LLC Kalotsa 2 27 4.4. Drilling Progress 0 1000 2000 3000 4000 5000 6000 7000 8000 1/5/20171/6/20171/7/20171/8/20171/9/20171/10/20171/11/20171/12/20171/13/20171/14/20171/15/20171/16/20171/17/20171/18/20171/19/20171/20/20171/21/20171/22/20171/23/20171/24/20171/25/20171/26/20179 7/8" 6 3/4" Hilcorp Alaska, LLC Kalotsa 2 28 5 SHOW REPORTS Hydrocarbon Show Report #1 Operator: Well:API Number: Field:Date: Rig:Time: County:Depth Start End State:20 4247'MD 4300'MD Country:20 4067'TVD 4116'TVD Averages Before During After Maximum ROP (fph)101 ft/hr 130 ft/hr 133 ft/hr 160 ft/hr WOB 6 klbs 4 klbs 3 klbs 8 klbs RPM 46 rpm 83 rpm 86 rpm 82 rpm PP 2089 psi 2036 psi 2150 psi 2176 psi Mud Weight 9.1 lbs/gal 9.1 lbs/gal 9.1 lbs/gal 9.1 lbs/gal Chloride 33,800 33,800 33,800 33,800 Total Gas 48 138 50 211 C1 (ppm)11,027 33,612 11,699 49,500 C2 (ppm) C3 (ppm) C4 (ppm) C5 (ppm) Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color None Color Intesity Color Color Comments Report by: Residual Cut Sandstone/ Sand = light brown gray, salt and pepper to slight bluish white; translucent, clear to milky; very well to well sorted; very fine to medium; dominant very fine to fine; angular to subround; high to moderate sphericity; unconsolidated and loose; occasional frost, common polish to etched; cement rare calcite to more common white silicate varied overgrowth tight to orthomatrix clayey to sectile; dominant quartz; occasional black lithics; trace green accessory mineral, gray orange to carbonaceous mater. Hilcorp Alaska, LLC 50-133-20659-00-00Kalotsa 2 Ninilchik Unit Saxon 169 1/14/2017 10:15 PM Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Residual Fluorescence Cuttings Analysis Ralph Winkelman None Oil Show Rating 1 10 100 1000 10000 1 2 3 4ppmPixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5C1/C3 Hydrocarbon Show Report #2 Operator: Well:API Number: Field:Date: Rig:Time: County:Depth Start End State:20 4910'MD 4995'MD Country:20 4673'TVD 4750'TVD Averages Before During After Maximum ROP (fph)140 ft/hr 129 ft/hr 124 ft/hr 173 ft/hr WOB 6 klbs 4 klbs 6 klbs 8 klbs RPM 86 rpm 76 rpm 77 rpm 77 rpm PP 2123 psi 1930 psi 2053 psi 2079 psi Mud Weight 9.2 lbs/gal 9.2 lbs/gal 9.2 lbs/gal 9.2 lbs/gal Chloride 35,000 35,000 35,000 35,000 Total Gas 99 535 152 1,521 C1 (ppm)24,975 115,783 36,609 310,784 C2 (ppm) C3 (ppm) C4 (ppm) C5 (ppm) Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color None Color Intesity Color Color Comments Report by: Residual Cut Sand/ Tuffaceous Sandstone/ Conglomerate = light gray with light olive gray and light yellowish gray secondary hues overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace medium to dark gray to greenish gray; very fine lower to very coarse upper, dominantly fine lower to medium upper; angular to subangular; poorly sorted; disaggregated with very light grayish white ashy supporting matrix common; light yellowish gray sandstone commonly grades between silty sandstone and sandy siltstone; non calcareous. Hilcorp Alaska, LLC 50-133-20659-00-00Kalotsa 2 Ninilchik Unit Saxon 169 1/15/2017 6:56 PM Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Residual Fluorescence Cuttings Analysis Ralph Winkelman None Oil Show Rating 1 10 100 1000 10000 1 2 3 4ppmPixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5C1/C3 Hydrocarbon Show Report #3 Operator: Well:API Number: Field:Date: Rig:Time: County:Depth Start End State:20 5495'MD 5555'MD Country:20 5210'TVD 5265'TVD Averages Before During After Maximum ROP (fph)75 ft/hr 121 ft/hr 116 ft/hr 169 ft/hr WOB 6 klbs 4 klbs 6 klbs 8 klbs RPM 35 rpm 71 rpm 77 rpm 75 rpm PP 2002 psi 2036 psi 2182 psi 2183 psi Mud Weight 9.3 lbs/gal 9.3 lbs/gal 9.3 lbs/gal 9.3 lbs/gal Chloride 32,000 32,000 32,000 32,000 Total Gas 44 336 34 779 C1 (ppm)10,412 75,094 8,144 169,657 C2 (ppm) C3 (ppm) C4 (ppm) C5 (ppm) Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color None Color Intesity Color Color Comments Report by: Residual Cut Tuffaceous Sand = gray white, green to blue hue; fairly well sorted; very fine to coarse upper; dominant very fine upper to fine upper; subangular to subround; high sphericity; framework quartz; cement orthomatrix colloidal ash-disaggregated tight quartz overgrowth cement; good visual porous. Hilcorp Alaska, LLC 50-133-20659-00-00Kalotsa 2 Ninilchik Unit Saxon 169 1/16/2017 7:41 AM Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Residual Fluorescence Cuttings Analysis Ralph Winkelman None Oil Show Rating 1 10 100 1000 10000 1 2 3 4ppmPixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5C1/C3 Hydrocarbon Show Report #4 Operator: Well:API Number: Field:Date: Rig:Time: County:Depth Start End State:20 7838'MD 7910'MD Country:20 7495'TVD 7567'TVD Averages Before During After Maximum ROP (fph)89 ft/hr 120 ft/hr 111 ft/hr 159 ft/hr WOB 9 klbs 7 klbs 9 klbs 12 klbs RPM 77 rpm 80 rpm 83 rpm 80 rpm PP 2482 psi 2447 psi 2600 psi 2505 psi Mud Weight 9.3 lbs/gal 9.3 lbs/gal 9.3 lbs/gal 9.3 lbs/gal Chloride 33,000 33,000 33,000 33,000 Total Gas 30 150 49 380 C1 (ppm)6,890 34,546 11,742 86,082 C2 (ppm) C3 (ppm) C4 (ppm) C5 (ppm) Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color None Color Intesity Color Color Comments Report by: Residual Cut Tuffaceous Sandstone = marbled bluish white, milky, translucent to vitreous; chalky firm to easy friable, minor soft ashy clay matrix; very poor to poor sorted; very fine to very coarse; very angular to subround; moderate to high sphericity; occluded white chalky cement overgrowths, occasional long contact fabric; disaggregated loose sand common overgrowths, frosting to etched; dominant quartz, common plagioclase, 5% lithics dominant granitic occasional felsic volcanics, green accessory minerals; pinpoint calcareous, trace calcite cement, trace limestone. Hilcorp Alaska, LLC 50-133-20659-00-00Kalotsa 2 Ninilchik Unit Saxon 169 1/18/2017 9:40 PM Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Residual Fluorescence Cuttings Analysis Ralph Winkelman None Oil Show Rating 1 10 100 1000 10000 1 2 3 4ppmPixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5C1/C3 Hilcorp Alaska, LLC Kalotsa 2 29 6 DAILY REPORTS Hilcorp Alaska, LLC DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR DATE Jan 06, 2017 DEPTH 344 PRESENT OPERATION M/U BHA TIME 23:59:07 YESTERDAY 120 24 HOUR FOOTAGE 224 CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 9.875" Smith JF9781 2x13, 3x15 100' 244' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 566.3 @ 135 5.1 @ 282 150.0 163.6 FT/HR SURFACE TORQUE 5935 @ 291 4249 @ 167 4221.6 5248.6 AMPS WEIGHT ON BIT 6 @ 296 0 @ 121 2.3 5.16 KLBS ROTARY RPM 57 @ 339 41 @ 143 40.7 56.1 RPM PUMP PRESSURE 854 @ 291 369 @ 121 568.8 787.48 PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ 344 0 @ 344 0.0 TRIP GAS 0 CUTTING GAS 0 @ 344 0 @ 344 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 0 @ 344 0 @ 344 0.0 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ 344 0 @ 344 0.0 AVG PROPANE (C-3) 0 @ 344 0 @ 344 0.0 CURRENT 0 BUTANE (C-4) 0 @ 344 0 @ 344 0.0 CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ 344 0 @ 344 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Drill from 100' to 344'. POOH. Make up BHA CANRIG PERSONNEL ON BOARD 2 DAILY COST 2,105 REPORT BY M. Skiles Hilcorp Alaska, LLC DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR Hilcorp DATE Jan 07, 2017 DEPTH 1388' PRESENT OPERATION Circulating TIME 23:52:02 YESTERDAY 344' 24 HOUR FOOTAGE 1043' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 694.88' 0.31 36.51 694.87' 880.17' 0.19 66.82 880.15' 1070.15' 0.52 352.56 1070.13' 1256.79' 0.50 45.00 1256.77' 1347.87' 0.37 56.75 1347.84' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 9.875" Smith JF9781 2x13, 3x15 100' 1388' 1288' 9.2 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 356.0 @ 920 6.3 @ 483 146.5 150.67 FT/HR SURFACE TORQUE 7738 @ 1369 4463 @ 382 6033.3 7036.4 AMPS WEIGHT ON BIT 15 @ 1300 0 @ 483 6.7 12.12 KLBS ROTARY RPM 83 @ 849 46 @ 376 75.8 81.59 RPM PUMP PRESSURE 2285 @ 1369 774 @ 367 1901.8 2188.23 PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 72 @ 1316 0 @ 498 11.7 TRIP GAS - CUTTING GAS 0 @ 1388 0 @ 1387 0.0 WIPER GAS 10u CHROMATOGRAPHY (ppm) SURVEY - METHANE (C-1) 17015 @ 1317 402 @ 567 2690.9 CONNECTION GAS HIGH - ETHANE (C-2) 0 @ 1387 0 @ 1387 0.0 AVG - PROPANE (C-3) 0 @ 1387 0 @ 1387 0.0 CURRENT 1u BUTANE (C-4) 0 @ 1387 0 @ 1387 0.0 CURRENT BACKGROUND/AVG 1u PENTANE (C-5) 0 @ 1387 0 @ 1387 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Drill f/ 344' t/ 673', Change out wash pipe, Drill f/ 673' t/ 921, Wipe hole to 299' (Wiper gas 7u), D rill f/ 921' t/ 1388', Circulate hole, Wipe hole to 290' (wiper gas 10u), Circulate hole, POOH CANRIG PERSONNEL ON BOARD 2 DAILY COST 2,105 REPORT BY M. Skiles Hilcorp Alaska, LLC DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR Hilcorp DATE Jan 08, 2017 DEPTH 1387 PRESENT OPERATION Rigdown diverter line TIME 23:52:02 YESTERDAY 1387 24 HOUR FOOTAGE 0 CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 4 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY POOH, Laydown BHA, Rigup and run casing, Cement casing, Rigdown diverterline CANRIG PERSONNEL ON BOARD 2 DAILY COST 2,105 REPORT BY M. Skiles Hilcorp Alaska, LLC DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR Hilcorp DATE Jan 09, 2017 DEPTH 1387' PRESENT OPERATION Nipple up TIME 23:52:02 YESTERDAY 1387' 24 HOUR FOOTAGE 0' CASING INFORMATION 7.625" @ 1378' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Nipple down, Nipple up CANRIG PERSONNEL ON BOARD 2 DAILY COST 2,105 REPORT BY M. Skiles Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR R. Pederson / R. Wall DATE Jan 10, 2017 DEPTH 1388 PRESENT OPERATION p/u 4 1/2" dp TIME 23:59:59 YESTERDAY 1388 24 HOUR FOOTAGE 0' CASING INFORMATION 7.625" @ 1378' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1388 MW 9 VIS 57 PV 22 YP 16 FL 9.9 Gels 5/9/11 CL- 700 FC 2/0 SOL 4.9 SD 0.1 OIL 0 MBL 12.5 pH 8 Ca+ - CCI 0.1/0.45 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) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY test bop, p/u 4 1/2" dp CANRIG PERSONNEL ON BOARD 4 DAILY COST 3145 REPORT BY R. Wardner Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR R. Pederson / R. Wall DATE Jan 11, 2017 DEPTH 1408 PRESENT OPERATION attempt to pump, no good TIME 23:59:59 YESTERDAY 1388 24 HOUR FOOTAGE 20 CASING INFORMATION 7 5/8" @ 1378 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED NB#2 6 3/4" HDBS MM65D 12396253 6x10 1388 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 240.4 @ 1399 17.3 @ 1391 123.8 124.3 FT/HR SURFACE TORQUE 5653 @ 1388 4335 @ 1391 4865.5 4568.8 AMPS WEIGHT ON BIT 8 @ 1395 4 @ 1391 7.1 6.6 KLBS ROTARY RPM 45 @ 1407 44 @ 1398 46.9 45.1 RPM PUMP PRESSURE 1621 @ 1401 1368 @ 1389 1595.1 1513.9 PSI DRILLING MUD REPORT DEPTH 1388 MW 9.1 VIS 57 PV 29 YP 11 FL 7.4 Gels 4/7/9 CL- 800 FC 1/0 SOL 5.4 SD 0.1 OIL 0 MBL 12 pH 7.4 Ca+ - CCI - MWD SUMMARY INTERVAL 1388 TO TOOLS MWD, Mudmotor, LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 26 @ 1403 4 @ 1390 17.7 TRIP GAS 1 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 6025 @ 1403 870 @ 1390 3806.0 CONNECTION GAS HIGH ETHANE (C-2) @ 0 @ AVG PROPANE (C-3) @ 0 @ CURRENT BUTANE (C-4) @ 0 @ CURRENT BACKGROUND/AVG 1/1 PENTANE (C-5) @ 0 @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga PRESENT LITHOLOGY 40% carbonaceous shale, 30% tuffaceous claysotne, 20% coal, 10% sand DAILY ACTIVITY SUMMARY p/u 4 1/2" dp, m/u bha and bit, rih to 1259, tag cement stringer, drill out cement and shoe track at 1291, drill 20' to 1408, pump 20 bbl spacer, pressured up during displacement, unable to pump, rack back stand, blow down, check suction, discharge screens and surface lines for blockage, clean screesn no blockage on stand pipe lines, attempt to pump CANRIG PERSONNEL ON BOARD 4 DAILY COST 3145 REPORT BY Russell Wardner Hilcorp Alaska, LLC Ninilchik DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR R. Pederson / R. Wall DATE Jan 12, 2017 DEPTH 1700 PRESENT OPERATION drilling ahead TIME 00:06:13 YESTERDAY 1408 24 HOUR FOOTAGE 292 CASING INFORMATION 7 5/8" @ 1378 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED NB#2 6 3/4" HDBS MM65D 12396253 6x10 1388 1408 20 0.25 RR#2 6 3/4" " " " 1408 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 233.3 @ 1602 1.5 @ 1410 122.9 97.0 FT/HR SURFACE TORQUE 6520 @ 1639 0 @ 1631 4205.3 0 AMPS WEIGHT ON BIT 18 @ 1637 0 @ 1431 3.0 2.5 KLBS ROTARY RPM 83 @ 1647 2 @ 1682 46.8 0 RPM PUMP PRESSURE 1724 @ 1644 712 @ 1409 1348.7 1499.0 PSI DRILLING MUD REPORT DEPTH 1626 MW 9 VIS 62 PV 10 YP 20 FL 4.8 Gels 8/12/16 CL- 35k FC 1/2 SOL 2.1 SD 0.1 OIL 0 MBL - pH 10 Ca+ 120 CCI 0.7 MWD SUMMARY INTERVAL 1388 TO TOOLS MWD, Mudmotor, LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 219 @ 1479 2 @ 1430 51.3 TRIP GAS 30u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 51961 @ 1479 399 @ 1430 12053.0 CONNECTION GAS HIGH 0 ETHANE (C-2) @ @ AVG 0 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 6/8 PENTANE (C-5) @ @ HYDROCARBON SHOWS Gas C-1 INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION a. 1436-1490 b.1504-1530 sand, sand and tuffaceous claystone a. 219u b. 200u a. sand v fn upr - lwr crs b. sand upr fn - lwr crs LITHOLOGY Beluga PRESENT LITHOLOGY 10% carbonaceou material, 20% sand, 60% tuffaceous claystone, 10% siltstone DAILY ACTIVITY SUMMARY attempt to pump @ shoe no good, pooh, unplug tools and bit, m/u bha and rr bit#2, single in dp, rih to shoe, fit to 13.3, drill 1408 to 1700 CANRIG PERSONNEL ON BOARD 4 DAILY COST 3145 REPORT BY R. Wardner Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR R. Pederson, R. Wall DATE Jan 13, 2017 DEPTH 3088 PRESENT OPERATION drilling ahead TIME 00:13:53 YESTERDAY 1700 24 HOUR FOOTAGE 1388 CASING INFORMATION 7 5/8" @ 1378 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED RR#2 6 3/4" HDBS MM65D 123196253 6x10 1408 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 217.7 @ 2513 5.3 @ 2371 136.4 124.5 FT/HR SURFACE TORQUE 7116 @ 1932 0 @ 2992 4738.1 5842.1 AMPS WEIGHT ON BIT 14 @ 2248 0 @ 1869 3.5 4.7 KLBS ROTARY RPM 83 @ 2392 4 @ 2312 62.8 76.2 RPM PUMP PRESSURE 2207 @ 2962 1361 @ 1742 1784.7 1987.4 PSI DRILLING MUD REPORT DEPTH 1626 MW 9 VIS 62 PV 10 YP 20 FL 4.8 Gels 8/12/16 CL- 35K FC 1/2 SOL 2.1 SD 0.1 OIL 0 MBL - pH 10 Ca+ 120 CCI 0.7 MWD SUMMARY INTERVAL 1388 TO TOOLS MWD, Mudmotor, LOWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 399 @ 2023 2 @ 2984 58.6 TRIP GAS CUTTING GAS @ @ WIPER GAS 11u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 90787 @ 2023 589 @ 2984 13603.5 CONNECTION GAS HIGH 0 ETHANE (C-2) @ @ AVG 0 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 9/7 PENTANE (C-5) @ @ HYDROCARBON SHOWS gas C-1 INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION a. 1707-1718 b. 1830-1842 c. 1997-2030 d. 2055-2112 e. 2205-2230 f. 2265-2282 g. 2304- 2325 h. 2390-2410 I. 2508-2518 j. 2639-2656 k. 2849-2862 Beluga interbeds tuffaceous claystone, siltstone, sand and coal a. 286u b 170u c.399u d. 281u e. 130u f. 189u g. 167u h. 134u I. 135u j. 192u k. 288u a. sand, coal, tuff clay b. sand, coal upr fn - upr med c. sand upr v fn - upr crs d. v fn- crs lwr e. v fn - lwr crs f.,g.,h. tuff clay, sand, coal I. v fn upr - med upr j.v fn upr - med lwr k. v fn to crs LITHOLOGY Beluga PRESENT LITHOLOGY 10% tuff, 80% tuffaceous claystone, 10% coal DAILY ACTIVITY SUMMARY drill 1700-2490, wipe hole, drill ahead 2490-3088 at report time CANRIG PERSONNEL ON BOARD 4 DAILY COST 3145 REPORT BY R. Wardner Hilcorp Alaska, LLC Ninilchik #2 DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR R. Pederson, R. Wall DATE Jan 14, 2017 DEPTH 4414 PRESENT OPERATION drilling ahead TIME 00:14:00 YESTERDAY 3088 24 HOUR FOOTAGE 1326 CASING INFORMATION 7 5/8" @ 1378 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4370.97 24.05 337.54 4180.48 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED RR#2 6 3/4" HDBS MM65D 123196253 6x10 1408 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 194.1 @ 3220 2.1 @ 3672 116.5 27.8 FT/HR SURFACE TORQUE 8823 @ 3974 0 @ 3800 6122.5 6712.0 AMPS WEIGHT ON BIT 11 @ 3471 0 @ 3736 4.4 5.1 KLBS ROTARY RPM 83 @ 3234 46 @ 3543 71.4 82.5 RPM PUMP PRESSURE 2187 @ 3429 1665 @ 3301 1930.0 1824.8 PSI DRILLING MUD REPORT DEPTH 4368 MW 9.1 VIS 59 PV 13 YP 17 FL 3.8 Gels 6/7/8 CL- 33800 FC 1/2 SOL 3.1 SD 0.1 OIL 0 MBL 2 pH 10.3 Ca+ 80 CC I 0.8 MWD SUMMARY INTERVAL 1388 TO TOOLS MWD, mudmotor, LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 447 @ 4132 7 @ 3856 58.1 TRIP GAS CUTTING GAS @ @ WIPER GAS 83u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 99375 @ 4132.00000 1373 @ 3857.00000 13709.3 CONNECTION GAS HIGH 0 ETHANE (C-2) 65 @ 3300.00000 65 @ 3300.00000 0.0 AVG 0 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 21/12 PENTANE (C-5) @ @ HYDROCARBON SHOWS Gas C-1 INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION a. 4070-4085 b. 4145-4215 c. 4245-4300 d. 4400-4442 a. sand, tuffaceous sandstone b. sandstone, sand, tuffaceous siltstone c. interbeds sandstone, coal and siltstone/claystone d. coal, sandstone, siltstone a. 122u b. 447u c. 207u d. 278 a.v fn upr-med lwr b. v fn-med, bimodal v fn-fn c. v fn-med d. v fn - fn LITHOLOGY Tyonek PRESENT LITHOLOGY 60% sand, 10% sandstone, 30% tuffaceous siltstone DAILY ACTIVITY SUMMARY drill 3088-3481, circ btms up, wipe 3481-2424, tight 2635-3424, 30k over, mad pass 2753-2735, service rig, rih 2424-3481, wash last two stands, drill 3481-4414 CANRIG PERSONNEL ON BOARD 4 DAILY COST 3145 REPORT BY Russell Wardner Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR R. Pederson / R. Wall DATE Jan 15, 2017 DEPTH 5351 PRESENT OPERATION drilling ahead TIME 00:18:22 YESTERDAY 4414 24 HOUR FOOTAGE 937 CASING INFORMATION 7 5/8" @ 1378 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5307.67 22.85 3378.57 5037.09 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED RRB#2 6 3/4" HDBS MM65D 123196253 6x10 1408 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 186.9 @ 4576 10.1 @ 5048 116.2 50.7 FT/HR SURFACE TORQUE 8750 @ 4841 0 @ 4607 6930.0 7545.4 AMPS WEIGHT ON BIT 17 @ 5048 0 @ 4608 4.5 8.8 KLBS ROTARY RPM 82 @ 4428 3 @ 5056 71.4 71.2 RPM PUMP PRESSURE 2178 @ 4430 1590 @ 4610 1862.6 2064.6 PSI DRILLING MUD REPORT DEPTH 4368 MW 9.1 VIS 59 PV 13 YP 17 FL 3.8 Gels 6/7/8 CL- 33800 FC 1/2 SOL 3.1 SD 0.1 OIL 0 MBL 2.0 pH 10.3 Ca+ 80 CCI 0.8 MWD SUMMARY INTERVAL 1388 TO TOOLS MWD, mudmotor, LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1521 @ 4948.00000 12 @ 5046.00000 138.7 TRIP GAS CUTTING GAS @ @ WIPER GAS 144u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 310784 @ 4947.00000 2744 @ 5046 31668.9 CONNECTION GAS HIGH 14u ETHANE (C-2) @ @ AVG 1.6u PROPANE (C-3) @ @ CURRENT 14u BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 16/18 PENTANE (C-5) @ @ HYDROCARBON SHOWS Gas C-1 INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION a. 4605-4642 b. 4665-4821 c. 4913-5012 d. 5176-5205 Tynonek a. 405u b. 333u c. 1521u d. 196u a. coal and sand b. sand, tuffaceous sandstone, sandstone, tuffaceous claystone, tuffaceous siltstone, c. conglomeratic tuffaceous sandstone, sand d. sand LITHOLOGY Tyonek PRESENT LITHOLOGY 10% sand, 70% sandstone, 10% tuffaceous siltstone DAILY ACTIVITY SUMMARY drill 4414-4476, circ and pump hi-vis sweep, wipe to 1430, tight spots 4030' and 2214', service rig, rih 1430-4386, wash down 4386- 4476, drill 4476-5351 CANRIG PERSONNEL ON BOARD 4 DAILY COST 3145 REPORT BY Russell Wardner Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR R. Pederson / R. Wall DATE Jan 16, 2017 DEPTH 6345 PRESENT OPERATION drilling ahead TIME 00:10:22 YESTERDAY 5351 24 HOUR FOOTAGE 994 CASING INFORMATION 7 5/8" @ 1378 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6302.85 13.19 338.25 5967.54 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED RR#2 6 3/4" HDBS MM65D 123196253 6x10 1408 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 196.1 @ 5650 0.1 @ 5479 110.3 102.6 FT/HR SURFACE TORQUE 9798 @ 6237 0 @ 5482 7452.0 8375.4 AMPS WEIGHT ON BIT 13 @ 6232 0 @ 6160 5.7 5.6 KLBS ROTARY RPM 82 @ 6237 0 @ 6097 66.5 76.1 RPM PUMP PRESSURE 2262 @ 5417 1547 @ 6032 1936.5 2165.9 PSI DRILLING MUD REPORT DEPTH 5308 MW 9.2 VIS 56 PV 12 YP 19 FL 3.8 Gels 6/8/11 CL- 35k FC 1/2 SOL 3.5 SD 0.1 OIL 0 MBL 3 pH 10.2 Ca+ 100 CCI 0.7 MWD SUMMARY INTERVAL 1388 TO TOOLS MWD, mudmotor, LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 779 @ 5527 8 @ 6292 81.6 TRIP GAS CUTTING GAS @ @ WIPER GAS 1042u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 169657 @ 5528 1564 @ 6292 19108.8 CONNECTION GAS HIGH 0 ETHANE (C-2) @ @ AVG 0 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 7/11 PENTANE (C-5) @ @ HYDROCARBON SHOWS Tyonek Gas C-1 INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION a. 5486-5553 b. 5624-5634 c. 5940-6006 Tyonek sandstone tuffaceous to easy friable a. 779u b. 260u c. 223u tuffaceous sandstone very fn to coarse dominant fine b. v fn-med, trace crs c. v fn-med LITHOLOGY Tyonek PRESENT LITHOLOGY 30% tuffaceous siltstone, 10% carbonaceous material, 10% coal, 20% sand, 30% sandstone DAILY ACTIVITY SUMMARY drill 5351-5536, circ hole clean, pump sweep, wipe to 4475, service rig, rih to 5536, wash last one down, drill ahead 5536-6345. CANRIG PERSONNEL ON BOARD 4 DAILY COST 3145 REPORT BY Russell Wardner Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR R. Pederson / R. Wall DATE Jan 17, 2017 DEPTH 7091 PRESENT OPERATION drilling ahead TIME 00:22:22 YESTERDAY 6345 24 HOUR FOOTAGE 746 CASING INFORMATION 7 5/8" @ 1378 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7049.24 1.22 296.18 6706.83 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED RRB#2 6 3/4" HDBS MM65D 123196253 6x10 1408 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 185.7 @ 6617 5.8 @ 6976 100.1 110.4 FT/HR SURFACE TORQUE 10491 @ 7046 0 @ 6857 7965.0 9397.6 AMPS WEIGHT ON BIT 14 @ 7037 0 @ 6730 5.8 7.7 KLBS ROTARY RPM 81 @ 7054 0 @ 6853 64.6 80.1 RPM PUMP PRESSURE 2410 @ 6603 1703 @ 6536 2068.1 2199.3 PSI DRILLING MUD REPORT DEPTH 6326 MW 9.35 VIS 54 PV 11 YP 20 FL 4.1 Gels 7/8/10 CL- 35k FC 1/2 SOL 3.9 SD 0.1 OIL 0 MBL 3 pH 10.2 Ca+ 120 CCI 0.65 MWD SUMMARY INTERVAL 1388 TO TOOLS MWD, mudmotor, LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 438 @ 6385 8 @ 6833 76.2 TRIP GAS CUTTING GAS @ @ WIPER GAS 562u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 99937 @ 6386.00000 557 @ 6833.00000 17661.8 CONNECTION GAS HIGH 20u ETHANE (C-2) @ @ AVG 4u PROPANE (C-3) @ @ CURRENT 1u BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 25/12 PENTANE (C-5) @ @ HYDROCARBON SHOWS Tyonek C-1 INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 6860-6906 T65 428u v fn lwr - fn upr LITHOLOGY Tyonek PRESENT LITHOLOGY 10% coal, 50% sandstone, 40% tuffaceous siltstone DAILY ACTIVITY SUMMARY drill 6345-6596, circ hole clean, pump sweep, wipe to 5466, wash 6501-6596, drill 6596-7191 CANRIG PERSONNEL ON BOARD 4 DAILY COST 3145 REPORT BY Russell Wardner Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR C. Montague / R. Wall DATE Jan 18, 2017 DEPTH 8065 PRESENT OPERATION drilling ahead TIME 00:40:49 YESTERDAY 7091 24 HOUR FOOTAGE 974 CASING INFORMATION 7 5/8" @ 1378 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7978.81 0.51 264.52 7636.26 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED RRB#2 6 3/4" HDBS MM65D 123196253 6x10 1408 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 200.1 @ 7604 8.9 @ 7654 101.1 118.6 FT/HR SURFACE TORQUE 10829 @ 8037 13 @ 7662 9497.6 10000.7 AMPS WEIGHT ON BIT 13 @ 7287 0 @ 7654 6.8 9.6 KLBS ROTARY RPM 81 @ 7297 1 @ 7669 73.9 78.8 RPM PUMP PRESSURE 2690 @ 7602 1751 @ 7402 2262.1 2335.8 PSI DRILLING MUD REPORT DEPTH 8022 MW 9.35 VIS 54 PV 14 YP 17 FL 4.2 Gels 6/7/9 CL- 35k FC 1/2 SOL 3.9 SD 0.1 OIL 0 MBL 3.5 pH 10.3 Ca+ 80 CCI 0.8 MWD SUMMARY INTERVAL 1388 TO TOOLS MWD, Mudmotor, LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 380 @ 7894 15 @ 7281 71.8 TRIP GAS CUTTING GAS @ @ WIPER GAS 576u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 86082 @ 7896 3473 @ 7281 16643.3 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ 7894 0 @ 7898 0 AVG 0 PROPANE (C-3) 34 @ 7894 29 @ 7898 0.2 CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 22/25 PENTANE (C-5) @ 0 @ HYDROCARBON SHOWS Tyonek Gas C-1 INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION a.7695-7711 b. 7758-7772 c. 7840- 7908 Tyonek Dry Gas a. 188u b. 175u c. 379u (c-1 c-3,1 7894'- 7898') sandstone /conglomeratic tuffaceous sandstone/ sand. LITHOLOGY Tyonek PRESENT LITHOLOGY 10% coal, 40% sand, 20% sandstone, 30% tuffaceous sandstone DAILY ACTIVITY SUMMARY drill 7091-7589, wipe to 6532, drill ahead 7589-8065. CANRIG PERSONNEL ON BOARD 4 DAILY COST 3145 REPORT BY Russell Wardner Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR C. Montague / R. Wall DATE Jan 19, 2017 DEPTH 8200' PRESENT OPERATION Clean out run / Running to bottom TIME 23:50:00 YESTERDAY 8066' 24 HOUR FOOTAGE 134' CASING INFORMATION 7 5/8" @ 1378' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED RRB#2 6 3/4" HDBS MM65D 123196253 6x10 1408' 8200' 6792' 72.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 181.9 @ 8070 22.4 @ 8177' 90.7 80 FT/HR SURFACE TORQUE 10930 @ 8159 9905 @ 8177' 9862.1 AMPS WEIGHT ON BIT 11 @ 8066 3 @ 8148' 7.6 8 KLBS ROTARY RPM 79 @ 8091 77 @ 8197' 74.0 RPM PUMP PRESSURE 2515 @ 8087 2095 @ 8148' 2281.9 PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL 1388' TO 8200' TOOLS MWD, Mudmotor, LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 139 @ 8117' 23 @ 8200' 45.1 TRIP GAS CUTTING GAS 0 @ 8200' 0 @ 8200' 0.0 WIPER GAS 232u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 32819 @ 8117' 2293 @ 8100' 10410.4 CONNECTION GAS HIGH ETHANE (C-2) 0 @ 8200' 0 @ 8200' 0.0 AVG PROPANE (C-3) 0 @ 8200' 0 @ 8200' 0.0 CURRENT 1 BUTANE (C-4) 0 @ 8200' 0 @ 8200' 0.0 CURRENT BACKGROUND/AVG 25 PENTANE (C-5) 0 @ 8200' 0 @ 8200' 0.0 HYDROCARBON SHOWS Tyonek Gas C-1 INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION a. 8115' b. 8165' Tyonek dry gas a. 139u b. 109u Tuffaceous Sandstone, Coal, Sand, Tuffaceous Siltstone LITHOLOGY Tyonek PRESENT LITHOLOGY 40% Sand, 30% Sandstone, 30% Tuffaceous Sandstone @ TD DAILY ACTIVITY SUMMARY Drill f/ 8066' t/ TD depth of 8200', Circulate clean and wipe hole to shoe, Cut and slip line, RIH, Fill pipe @ 4540' (200u), RIH, Tag up @ 5311', Circulate through (232u), RIH, CANRIG PERSONNEL ON BOARD 4 DAILY COST 3,145 REPORT BY M. Skiles Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR C. Montague / R. Wall DATE Jan 20, 2017 DEPTH 8200' PRESENT OPERATION Laying down tools TIME 23:59:00 YESTERDAY 8200' 24 HOUR FOOTAGE 0' CASING INFORMATION 7 5/8" @ 1378' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED RRB#2 6 3/4" HDBS MM65D 123196253 6x10 1408' 8200' 6792' 72.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 1874u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Ream to bottom (1874u max), Raise viscosity of mud to 80, POOH to shoe, Service rig, POOH and lay down tools. CANRIG PERSONNEL ON BOARD 2 DAILY COST 2,105 REPORT BY M. Skiles Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR C. Montague / R. Wall DATE Jan 21, 2017 DEPTH 8200' PRESENT OPERATION Running elogs TIME 23:59:00 YESTERDAY 8200' 24 HOUR FOOTAGE 0' CASING INFORMATION 7 5/8" @ 1378' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8200' MW 9.62 VIS 76 PV 15 YP 28 FL 4.1 Gels 11/15/20 CL-34,000 FC 1/2 SOL 5.3 SD 0.10 OIL MBL 3.5 pH 10.0 Ca+ 40 CCI 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) @ @ AVG PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Running Elogs CANRIG PERSONNEL ON BOARD 2 DAILY COST 2,105 REPORT BY M. Skiles Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR C. Montague / R. Wall DATE Jan 22, 2017 DEPTH 8200' PRESENT OPERATION R/D logging crew / Prep for BOP test TIME 23:59:00 YESTERDAY 8200' 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8" @ 1378' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8200' MW 9.6 VIS 86 PV 15 YP 26 FL 4.2 Gels 10/14/19 CL- 34,000 FC 1/2 SOL 5.3 SD 0.10 OIL 0.0/92.0 MBL 3.5 pH 9.8 Ca+ 40 CCI 0.40 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) @ @ AVG PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Run Elogs, R/D logging crew, Prep for BOP test. CANRIG PERSONNEL ON BOARD 2 DAILY COST 2,105 REPORT BY M. Skiles Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR C. Montague / R. Wall DATE Jan 23, 2017 DEPTH 8200' PRESENT OPERATION RIH w/ cleanout assembly TIME 23:59:00 YESTERDAY 8200' 24 HOUR FOOTAGE 0' CASING INFORMATION 7 5/8" @ 1378' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 172u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Run BOP test, Make up clean out assmbly, RIH, Circulate @ 3700' (Max gas 172u), RIH CANRIG PERSONNEL ON BOARD 2 DAILY COST 2,105 REPORT BY M. Skiles Hilcorp Alaska, LLC Ninilchik Field DAILY WELLSITE REPORT Kalotsa 2 REPORT FOR C. Montague / R. Wall DATE Jan 24, 2017 DEPTH 8200' PRESENT OPERATION L/D drill pipe TIME 23:59:00 YESTERDAY 8200' 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8" @ 1378' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 3,064 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY RIH to 5900', Circulate (Max gas 586u), RIH to 6513', Ream through to 6610', RIH from 7170', Ream down, RIH f/ 7230' t/ 7660', Ream to bottom (Max gas 3,064u), Circulate and condition mud, POOH to 6977', (hole swabbing) POOH f/ 6977' t/ 6170', RIH from 6170' to 8200', Ciculate and condition mud (Max gas 103u), POOH and laydown drill pipe. CANRIG PERSONNEL ON BOARD 2 DAILY COST 2,105 REPORT BY M. Skiles