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HomeMy WebLinkAbout212-132Nolan Vlahovich Hilcorp Alaska, LLC Geotech 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-4558 E-mail: nolan.vlahovich@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: Date: 1/19/2024 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20240119 Well API #PTD #Log Date Log Company Log Type AOGCC Eset# HV B-15 50231200390000 212132 10/21/2023 Yellowjacket GPT-PERF TBU M-5 50733204130000 189133 10/20/2023 AK E-Line PERF TBU M-11 50733205900000 210145 10/21/2023 AK E-Line PLUG/PLT Please include current contact information if different from above. T38435 T38436 T38467 1/24/2024 HV B-15 50231200390000 212132 10/21/2023 Yellowjacket GPT-PERF Kayla Junke Digitally signed by Kayla Junke Date: 2024.01.22 12:57:24 -09'00' 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: ______________________ 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 3,069 feet 2,507 & 2,750 feet true vertical 2,558 feet 2,745 (fish)feet Effective Depth measured 2,507 feet N/A feet true vertical 2,135 feet N/A feet Perforation depth Measured depth See Schematic feet True Vertical depth See Schematic feet Tubing (size, grade, measured and true vertical depth) 5-1/2" 17# / L-80 924' MD 895' TVD Packers and SSSV (type, measured and true vertical depth) N/A N/A N/A N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): 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: Jake Flora, Operations Engineer 323-539 Sr Pet Eng: 6,390psi Sr Pet Geo: Sr Res Eng: WINJ WAG 528 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 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 98' 0 0558 0 410 36 7,740psi 7-5/8" STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 212-132 50-231-20039-00-00 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Hilcorp Alaska, LLC N/A 5. Permit to Drill Number:2. Operator Name 4. Well Class Before Work: FEE-CIRI Deep Creek / HV Beluga-Ty Gas, Sterling Undefined Gas* Happy Valley B-15 Plugs Junk measured Length measured true vertical Production Liner 1,139' 2,132' Casing Structural 1,072' 5-1/2" 1,139' 3,056' 2,549' 98'Conductor Surface Intermediate 10-3/4"98' TVD *CO 797 allows downhole commingling. 4,790psi 5,210psi 6,890psi Burst Collapse 2,470psi measured Packer p k ft t Fra O s O 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 3:49 pm, Nov 01, 2023 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2023.11.01 12:49:02 - 08'00' Noel Nocas (4361) Wellname: DCU HVB-015 Rig: API Number: 50-231-20039-00-00 Well Permit Number: 212-132 Start Date: 10/21/23 End Date: 10/21/23 Date Summary 10/21/23 YJ E-Line travel to Hapy Valley. PJSM & permits. MIRU YJ E-Line. Great deal of trouble removing tree cap. Complete R/U. Attempt PT. O-ring failure. Make repairs. PT 2000 PSI. Test good. RIH w/ 2.75” GPT. Tag fill at 2469’. Detected light FL at 2320’. POOH OOH. L/D GPT. P/U 9’ x 2.75” Gun ONE. RIH w/ 9’ x 2.75” Gun ONE to shoot Beluga 1 sands at 2390’ to 2399’. CCL to TS 11.5’ / CCL depth to be at 2378.5’ to place TS at 2390’. Made correlation pass. Sent log to town. Town adjusted up 2’. Fired Gun ONE. POOH. Start PSI 33.8 – 520 MCFD / 5 Min 33.7 – 548 MCFD / 10 Min 33.7 – 551 MCFD / 15 Min 33.9 – 544 MCFD / 20 Min 33.9 – 541 MCFD. OOH. L/D Gun ONE. End cap dry. P/U 5’ x 2.75” Gun TWO. RIH w/ 5’ x 2.75” Gun TWO to shoot Beluga 2A sands at 2445’ to 2450’. CCL to TS 11.5’ / CCL depth to be at 2433.5’ to place TS at 2445’. Made correlation pass. Sent log to town. Town adjusted 5’ up. Fired Gun TWO. POOH. Start PSI 33.1 – 545 MCFD / 5 Min 34.1 – 554 MCFD / 10 Min 34.1 – 552 MCFD / 15 Min 34.1 – 549 MCFD / 20 Min 33.8 – 547 MCFD. OOH. L/D Gun TWO. Small amount of mud in end cap. RDMO YJ E-Line. Move equipment to Pearl pad for pending job Pearl 8. YJ E-Line return to shop. Hilcorp Alaska LLC Well Operations Summary Daily Operations RIH w/ 5’ x 2.75” Gun TWO to shoot Beluga 2A sands at 2445’ to 2450’ RIH w/ 9’ x 2.75” Gun ONE to shoot Beluga 1 sands at 2390’ to 2399’ Updated by DMA 11-01-23 SCHEMATIC TD = 3,069’ MD / 2,558’ TVD PBTD: 2,898’ MD / 2,431’ TVD Ground Elev: 593’ Above MSL KB-THF: 14.7’ C A S I N G D E T A I L Size Type Wt Grade Conn. ID Top Btm 10-3/4" Conductor 45.5 L-80 - 9.95 Surf 98' 7-5/8” Prod Casing 29.7 L-80 Buttress 6.875 Surf 1,139' 5-1/2" Prod Liner 17 L-80 VAM STL 4.892 924’ 3,056' TUBING DETAIL 5-1/2” Production 17 L-80 VAM STL 4.892 Surf 924’ 10-3/4” 1 5-1/2” JEWELRY DETAIL No. Depth ID OD Item 1 924’ 4.892” -- JMZX Liner Hanger 2 2,507’ -- -- Comp Bridge Plug 3 2,745’ -- -- Fish: Weatherford Pulling Tool 4 2,750’ -- 4.892” WRP Retrievable Plug w/ 2.875” OD Fishing neck 7-5/8” Happy Valley Well: HV B-15 As Completed 10/26/12 PERFORATION DETAIL Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) Feet SPF Date Status Beluga A 2,360’ 2,374’ 2,026’ 2,036’ 14 6 3/13/13 Open Beluga 1 2,390’ 2,399’ 2,048’ 2,055’ 9 10/21/23 Open Beluga 2A 2,445’ 2,450’ 2,089’ 2,092’ 5 10/21/23 Open Beluga C 2,425’ 2,432’ 2,074’ 2,079’ 7 6 3/13/13 Open Beluga D 2,467’ 2,487’ 2,105’ 2,120’ 20 6 10/26/12 Open Beluga D 2,472’ 2,492’ 2,109’ 2,123’ 20 6 12/15/12 Open Beluga E 2,530’ 2,535’ 2,152’ 2,156’ 5 6 12/15/12 Isolated Beluga F 2,600’ 2,612’ 2,205’ 2,214’ 12 6 12/15/12 Isolated Beluga H 2,812’ 2,822’ 2,366’ 2,373’ 10 6 12/15/12 Isolated Beluga I 2,844’ 2,848’ 2,390’ 2,393’ 4 6 12/15/12 Isolated Beluga D Beluga D Beluga E Beluga F Beluga H Beluga I 3 Beluga C Beluga A 4 2 Beluga 1/2A 1. Type of Request:Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: ___________________ 2.Operator Name:4. Current Well Class: 5. Permit to Drill Number: Exploratory Development 3. Address:Stratigraphic Service 6. API Number: 7. If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? 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): 3,069'2,745' Casing Collapse Structural Conductor 2,470psi Surface Intermediate Production 4,790psi Liner 6,390psi 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 N/A; N/A N/A; N/A 2,558'2,745'2,724' Deep Creek HV Beluga-Ty Gas 10-3/4" See Attached Schematic 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Happly Valley B-15CO 553 A Same 1,072'7-5/8" ~509 psi 1,139' 2,750' Length October 11, 2023 3,056'2,132' 5-1/2" 2,549' 1,139' Perforation Depth MD (ft): 5-1/2" See Attached Schematic 5,210psi98'98' Size 98' MD Hilcorp Alaska, LLC Proposed Pools: 17# / L-80 TVD Burst 924' 6,890psi Tubing MD (ft):Perforation Depth TVD (ft): Subsequent Form Required: STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEE-CIRI 212-132 50-231-20039-00-00 Tubing Size: PRESENT WELL CONDITION SUMMARY Jake Flora, Operations Engineer AOGCC USE ONLY 7,740psi Tubing Grade: 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: 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 11:15 am, Oct 02, 2023 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2023.10.02 11:02:55 - 08'00' Noel Nocas (4361) 323-539 10-404 BJM 10/4/23 DSR-10/2/23 CO 797 allows downhole commingling. SFD , Sterling Undef Gas SFD 10/4/2023*&:JLC 10/5/2023 Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2023.10.05 11:23:46 -08'00'10/05/23 RBDMS JSB 100523 Well Prognosis Well Name:HVB-15 API Number:50-133-20039-00-00 Regulatory Contact:Donna Ambruz Permit to Drill Number:212-132 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) Maximum Expected BHP: ~ 721 psi @ 2123’ TVD (0.34 psi/ft gradient to bottom open perf) Max. Potential Surface Pressure: ~ 509 psi (Max expected BHP minus gas to surface) Well Status: Online Gas Producer Last well test: 500 mcfd @ 45 psi (9/07/23) Brief Well Summary HVB-15 was drilled in 2012 and is an online Beluga producer. The objective of this sundry is to increase productivity by adding infill Beluga sands within the existing perf interval. History: 09-07-18 RIH W/ 2'' DD BAILER TO 2491'KB TAG FILL POOH Max Angle: 41 degree sail Current open gross perf interval: 2360’ – 2492’ MD (2026’ – 2123’ TVD) Procedure: 1. Review approved COAs 2. MIRU Eline, PT lubricator to 2000 psi. 3. Log flowing GPT 4. Perforate the below sands from the top down (shallowest first) while flowing: Sand MD Top MD Btm TVD Top TVD Btm Beluga 1 2390’ 2399’ 2048’ 2054’ Beluga 2A 2445’ 2450’ 2089’ 2092’ a. If any zone produces sand and/or water or needs isolated, RIH and set plug above the perforations OR patch across the perforations. 5. Return to production Attachments: 1. Actual Schematic 2. Proposed Schematic infill Beluga sands Proposed perforations will lie within the Sterling Undefined Gas Pool. Downhole commingling of production from Sterling Undef Gas Pool and Beluga/Tyonek Gas Pool is allowed in this well per CO 797. SFD Updated by DMA 11/24/14 SCHEMATIC TD = 3,069’ MD / 2,558’ TVD PBTD: 2,898’ MD / 2,431’ TVD Ground Elev: 593’ Above MSL KB-THF: 14.7’ CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 10-3/4" Conductor 45.5 L-80 - 9.95 Surf 98' 7-5/8” Prod Casing 29.7 L-80 Buttress 6.875 Surf 1,139' 5-1/2" Prod Liner 17 L-80 VAM STL 4.892 924’ 3,056' TUBING DETAIL 5-1/2” Production 17 L-80 VAM STL 4.892 Surf 924’ 10-3/4” 1 5-1/2” JEWELRY DETAIL No. Depth ID OD Item 1 924’ 4.892” -- JMZX Liner Hanger 2 2,507’ -- -- Comp Bridge Plug 3 2,745’ -- -- Fish: Weatherford Pulling Tool 4 2,750’ -- 4.892” WRP Retrievable Plug w/ 2.875” OD Fishing neck 7-5/8” Happy Valley Well: HV B-15 As Completed 10/26/12 PERFORATION DETAIL Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) Feet SPF Date Status Beluga A 2,360’ 2,374’ 2,026’ 2,036’ 14 6 3/13/13 Open Beluga C 2,425’ 2,432’ 2,074’ 2,079’ 7 6 3/13/13 Open Beluga D 2,467’ 2,487’ 2,105’ 2,120’ 20 6 10/26/12 Open Beluga D 2,472’ 2,492’ 2,109’ 2,123’ 20 6 12/15/12 Open Beluga E 2,530’ 2,535’ 2,152’ 2,156’ 5 6 12/15/12 Isolated Beluga F 2,600’ 2,612’ 2,205’ 2,214’ 12 6 12/15/12 Isolated Beluga H 2,812’ 2,822’ 2,366’ 2,373’ 10 6 12/15/12 Isolated Beluga I 2,844’ 2,848’ 2,390’ 2,393’ 4 6 12/15/12 Isolated Beluga D Beluga D Beluga E Beluga F Beluga H Beluga I 3 Beluga C Beluga A 4 2 Boundary between Beluga/Tyonek Gas Pool and Sterling Undefined Gas Pool lies at about 2,463' MD. SFD Updated by DMA 09-26-23 PROPOSED TD = 3,069’ MD / 2,558’ TVD PBTD: 2,898’ MD / 2,431’ TVD Ground Elev: 593’ Above MSL KB-THF: 14.7’ CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 10-3/4" Conductor 45.5 L-80 - 9.95 Surf 98' 7-5/8” Prod Casing 29.7 L-80 Buttress 6.875 Surf 1,139' 5-1/2" Prod Liner 17 L-80 VAM STL 4.892 924’ 3,056' TUBING DETAIL 5-1/2” Production 17 L-80 VAM STL 4.892 Surf 924’ 10-3/4” 1 5-1/2” JEWELRY DETAIL No. Depth ID OD Item 1 924’ 4.892” -- JMZX Liner Hanger 2 2,507’ -- -- Comp Bridge Plug 3 2,745’ -- -- Fish: Weatherford Pulling Tool 4 2,750’ -- 4.892” WRP Retrievable Plug w/ 2.875” OD Fishing neck 7-5/8” Happy Valley Well: HV B-15 As Completed 10/26/12 PERFORATION DETAIL Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) Feet SPF Date Status Beluga A 2,360’ 2,374’ 2,026’ 2,036’ 14 6 3/13/13 Open Beluga 1/2A ±2,390’ ±2,450’ ±2,048’ ±2,092’ Proposed TBD Beluga C 2,425’ 2,432’ 2,074’ 2,079’ 7 6 3/13/13 Open Beluga D 2,467’ 2,487’ 2,105’ 2,120’ 20 6 10/26/12 Open Beluga D 2,472’ 2,492’ 2,109’ 2,123’ 20 6 12/15/12 Open Beluga E 2,530’ 2,535’ 2,152’ 2,156’ 5 6 12/15/12 Isolated Beluga F 2,600’ 2,612’ 2,205’ 2,214’ 12 6 12/15/12 Isolated Beluga H 2,812’ 2,822’ 2,366’ 2,373’ 10 6 12/15/12 Isolated Beluga I 2,844’ 2,848’ 2,390’ 2,393’ 4 6 12/15/12 Isolated Beluga D Beluga D Beluga E Beluga F Beluga H Beluga I 3 Beluga C Beluga A 4 2 AOGCC Memorandum Date: 7/27/2017 To: File; AOGCC Docket 15-38 From: Jim Regg, Petroleum Engineer Subject: Closeout — Missing Outer Annulus Pressure Gauges Deep Creek Unit Happy Valley B-14 (PTD 2120540) Deep Creek Unit Happy Valley B-15 (PTD 2121320) Nikolaevsk Red #1 (PTD 2040840) Hilcorp Alaska LLC (Hilcorp) was sent a letter dated December 21, 2015 advising that AOGCC inspections at the Happy Valley and Nikoleaysk production sites found 3 wells that were not equipped with the required outer annulus pressure gauges. Instructions included in the letters required Hilcorp to describe what has been or would be done to correct and prevent recurrence. AOGCC also required with the response a list of Hilcorp-operated wells that do not have the required pressure gauges as outlined in 20 AAC 25. 200(c). Hilcorp responded on January 22, 2016 (after being granted an extension on January 8, 2016) with the required information. As follow-up to Hilcorp's letter, AOGCC performed inspections of the wells noted as not equipped with the required gauges for monitoring annulus pressures. Corrective actions have been implemented as described. AOGCC continues to monitor all wells during site visits for compliance with the pressure gauge requirements. This docket (OTH 15-38) is considered closed with Hilcorp's response and AOGCC inspections. • AOGCC Memorandum Date: 7/27/2017 To: File; AOGCC Docket 15-38 <vet 7(Z-7/r From: Jim Regg, Petroleum Engineer Subject: Closeout—Missing Outer Annulus Pressure Gauges Dee. Creek Unit Happy Valley B-14 PTD 2120540) Deep Creek Unit Ha.• Valle B-15 (PTD 2121321 i o aevs Red #1 (PTD 2040840) Hilcorp Alaska LLC (Hilcorp) was sent a letter dated December 21, 2015 advising that AOGCC inspections at the Happy Valley and Nikoleaysk production sites found 3 wells that were not equipped with the required outer annulus pressure gauges. Instructions included in the letters required Hilcorp to describe what has been or would be done to correct and prevent recurrence. AOGCC also required with the response a list of Hilcorp-operated wells that do not have the required pressure gauges as outlined in 20 AAC 25. 200(c). Hilcorp responded on January 22, 2016 (after being granted an extension on January 8, 2016) with the required information. As follow-up to Hilcorp's letter, AOGCC performed inspections of the wells noted as not equipped with the required gauges for monitoring annulus pressures. Corrective actions have been implemented as described. AOGCC continues to monitor all wells during site visits for compliance with the pressure gauge requirements. This docket (OTH 15-38) is considered closed with Hilcorp's response and AOGCC inspections. SCANNED AUG 0 4 2017, • • Hilcorp Alaska,LIE Post Office Box 244027 ?,0i(, Anchorage,AK 99524-4027 3800 Centerpoint Drive Suite 100 January 22,2016 Anchorage,AK 99503 al Cathy P. Foerster Chair, Commissioner Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage,AK 99501-3572 Re: Docket No.OTH-15-038 Missing Outer Annulus Pressure Gauges Dee. Creek Unit Happy Valle -14 PTD 2120540) l ee. Creek Unit Ha.. Valley B-15 (PTD 2121320 Nikolaevsk Red#1 (PTD 20408, 1 Dear Chair Foerster: We write to provide additional information concerning our review of all Hilcorp Alaska-operated wells. On December 21, 2015, you wrote stating that safety valve system inspections performed by an AOGCC Inspector at the Happy Valley B-Pad and the Nikolaevsk Pad revealed three wells not equipped with pressure gauges to monitor the outer annuli. We responded by letter dated January 8, 2016, noting that a gauge had been installed on well Nikolaevsk Red#1 (PTD 2040840),the Happy Valley wells B-14 and B-15 did not require outer annulus pressure gauges as the wells were constructed with only a tubing-casing annulus, and requesting additional time to complete the review directed in your December 21 letter. You replied by letter dated January 11, 2016, providing additional time and requiring a response by January 22, 2016. This letter is our response. We appreciate the extension of time to complete a thorough review of Hilcorp Alaska-operated wells. The additional time was necessary so well schematics and well head designs could be reviewed to ensure all proper annuli had valves and gauges, based on design, and not just what was visible on the well. Our review found that all wells operated by Hilcorp Alaska had the required annuli valves. The review identified the following wells did not have the required annuli gauges on the wells (see attached photos): Well PTD# Gauge Status Correction Ivan River 41-01 192-109 Missing OOA Gauge OOA Gauge Installed 01/12/16 Nikolaevsk Red#2 204-084 Missing OA Gauge OA Gauge Installed 12/29/2015 Swanson River 12-15 160-022 Missing OA Gauge OA Gauge Installed 01/14/2016 Swanson River 32A-15 194-084 Missing OA Gauge OA valve was below mud in cellar.The cellar (Note:2 IA Gauges bottom needed to be thawed to be able to suck out Were Installed) mud below valves to install gauge. OA Gauge will be installed before 02/01/16. ECOPy • • Cathy P.Foerster Docket Number:OTH-15-038 January 22,2015 Page 2 of 2 The monobore wells that have only one monitorable casing have only one gauge. The following fields have active monobores: Cook Inlet Fields Monobore Count North Slope Fields Monobore Count Beaver Creek 4 Milne Point 36 Cannery Loop 2 Happy Valley 3 Kenai Gas Field 5 Ninilchik 2 Swanson River 2 During this review of all wellheads in Hilcorp Alaska's inventory we identified a knowledge deficiency with some of the field operations staff where some did not fully understand wellhead design below the master valve. We are currently developing a general wellhead training module that will become part of the field operator training package for the Alaska employees. We expect this to be completed in early March and will be reviewed with all Hilcorp Alaska field operators. Hilcorp is available at the commission's convenience to inspect the wells that were missing the correct gauges in Swanson River, Nikolaevsk Field and Ivan River,to close this matter. Should you have any additional questions, please contact Chad Helgeson (777-8405). Sincerely, HILCORP ALASKA, LLC David ilkins Senior Vice President Hilcorp Alaska, LLC Attachments— Ivan River 41-01 Casing Gauge Photos Nikolaevsk Red#2 Casing Gauge Photos Swanson River 12-15 Casing Gauge Photos Swanson River 32A-15 Casing Gauge Photos cc: Jim Regg-AOGCC Chet Starkel -Hilcorp Larry Greenstein - Hilcorp David S Wilkins-Hilcorp Bo York-Hilcorp Stan Golis—Hilcorp Mike Dunn - Hilcorp • S AOGCC Docket No.OTH-15-038 Missing Outer Annulus Pressure Gauges Corrective Actions I s • AN V ' . 14S1:01% 141Z. .40.7000 ' \ ' ..- 141141*AN 44.141*44111r.: ki, , liti.,„ , .s ..,.,,,,,,,..,,,y,..,, ‘&:. \‘:.' ": '' 1111‘..N., i..1i8ii.„i1,„.:.„.).,: .„,vt. '1 ,,,, . , 1 Ivan River 41-01 Outer Outer Annulus gauge it: r ‘ ,. .,. i,,,,, ...,„; . , .7„: , 1-4...._ y i. s 1./ y I w✓c gar i illi Nikolaevsk Red#2 Outer Annulus gauge • • .. III iilcorp Alaska,id.t: -- SWANSON RI%EP 1,..11,,,I12••5 iSRU"2•'51 ,,i3,... A.- API #50133 10138-00 00 # PTD# 160022 r� LEASE#FED A028406 k SURFACE LOCATION: yx.,. SW14.N4`+114 SEC 15,TSN•R9W,SM c,4 4 iJ 1 'c ,4 „iiii4,. ..111,16111*** . , -1)0. .' MN" Swanson River 12-15(Tree removed above Master Valve for Drilling Activity) 4 4 N. l :."- t - I iikorp A1114-2, 1-11' c Ap; #510,-41,303841014/. / pTr? r ✓,28405 '..-EA"— x FED AT1ON: �' -UHEA�E 1-(.-C i,i: TfIN Fos' S , , f S4VL4.N1S'dr �p , Swanson River 32A-15 (Tree Removed for Drilling Activity). 2 gauges installed on IA valves, and OA valve is below the mud line in the cellar(found during wellhead and well schematic review). Mlamescaremen =a -�.,�. k.�- ss.. °' '--:. 30 �`���• !i//� THE STATE Alaska Gas tgi of , Conservation Commission 333 West Seventh Avenue GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 Main. 907 279 3 Fax. 907.279.753 2 www.aogcc.alaska.gov January 8, 2016 CERTIFIED MAIL— RETURN RECEIPT REQUESTED 7015 0640 0006 0779 5852 Mr. David Wilkins Senior Vice President Hilcorp Alaska, LLC P.O. Box 244027 Anchorage, AK 99524-4027 Re: Docket No. OTH-15-038 Missing Outer Annulus Pressure Gauges Deep Creek Unit Happy Valley B-14 (PTD 2120540) ee Creek Unit Ha Valley - 5 (P Nikolaevsk Red#1 (PTD 2040840) Dear Mr. Helgeson: The Alaska Oil and Gas Conservation Commission (AOGCC) received Hilcorp Alaska LLC (Hilcorp)'s response to the notice of violation dated December 21, 2105. Information included well schematics for each of the wells that were observed to be missing outer annulus pressure gauges. In the case of Happy Valley wells B-14 and B-15, AOGCC agrees with Hilcorp that the outer annulus pressure gauges would not be required based on the well schematics provided (wells are constructed with only a tubing-casing annulus). Hilcorp confirms that the required pressure gauge has been installed on the outer annulus of Nikoleaysk Red #1 but that has yet to be confirmed by AOGCC. Hilcorp has requested an extension until January 22, 2016 to complete a review of all Hilcorp- operated wells and provide a timeline for installing the required annulus valves on those wells that are not in compliance with 20 AAC 25.200(c). Hilcorp's requested extension is APPROVED. The AOGCC will not close this enforcement action until the required information has been provided by Hilcorp and an AOGCC Inspector has been able to confirm compliance with 20 AAC 25.200(c) for all wells identified as missing the required annulus valves and pressure gauges. Questions regarding this letter should be directed to Jim Regg at 907-793-1236. • • Docket No.OTH-15-038 Notice of Violation January 8,2016 Page 2 of 2 Sincerely, f-4"--t•-7 Cathy . Foerster Chair, Commissioner cc: AOGCC Inspectors C. Helgeson (Hilcorp, by email) RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a),within 20 days after written notice of the entry of this order or 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 of the matter determined by it. If the notice was mailed,then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration,upon denial,this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction,in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration,this order or decision does not become final. Rather,the order or decision on reconsideration will be the FINAL order or decision of the AOGCC,and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails,OR 30 days if the AOGCC otherwise distributes,the order or decision on reconsideration. In computing a period of time above,the date of the event or default after which the designated period begins to run is not included in the period;the last day of the period is included,unless it falls on a weekend or state holiday,in which event the period runs until 5:00 p.m.on the next day that does not fall on a weekend or state holiday. • • : • fir Hilcorp Alaska, LLC Post Office Box 244027 Anchorage,AK 99524-4027 3800 Centerpoint Drive Suite 100 Anchorage,AK 99503 January 5, 2016 Cathy P. Foerster Chair,Commissioner Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage,AK 99501-3572 Re: Docket No. OTH-15-038 Missing Outer annulus Pressure gauges D-- •-- Unit Happy Valle B-14 PTD 2120540) Deep Creek Unit appy 'a ey B-15 (PTD 132 0) Nikolaevsk Red#1 (PTD 2040840 Dear Chair Foerster: We respond to the Alaska Oil and Gas Conservation Commission's (AOGCC's) letter dated December 21,2015, in regards to Missing Outer Annulus Pressure Gauges. The Happy Valley 14& 15 wells do not have a casing-casing(outer)annuli and therefore did not have a gauge installed in the conductor valve. This was communicated to the AOGCC inspector by the Hilcorp Alaska LLC (Hilcorp) representative during the visit in October. Attached are the current wellhead schematics, which show the bottom valve/flange is mounted to the conductor (10-3/4" Pipe). These conductors were driven into the ground and are not designed to hold pressure. The conductors are designed as a support during drilling, to flowback returns while drilling and cementing of the surface casing, and prevent collapse of the loose soil near the surface. The Nikolaevsk Red #1 well did not have a gauge in the casing-casing annulus. Attached is a picture of the casing-casing valve that was not plugged, and until a full wellhead review was completed on this well, it was not clear by the Hilcorp operators that this was a casing-casing valve that would monitor the 9-5/8"x7" annulus of this well. A gauge has been installed on the valve and is being monitored by operations. There are many wells operated by Hilcorp that are monobore completions and do not have casing-casing annuli. We are currently conducting a review of all the wells and wellhead designs to understand which wells do not have an outer annulus and therefore may not comply with 20 AAC 25.200(c). A preliminary list of wells that have this configuration are: Happy Valley #9, 14, 15 & 17, KBU 41-07X & 31-06X, Falls Creek 5, Paxton 5, Beaver Creek 23, 24 & 25, SRU 213-15 &213B-15. • • Cathy P.Foerster Docket Number:OTH-15-032 January 5,2016 Page 2 of 2 Hilcorp is requesting an extension until January 22nd to complete a review of the entire Hilcorp Alaska well inventory and provide a list to the AOGCC of wells that do not have casing-casing annuli. In the last two weeks of field reviews only one other well (Shut-in Nikolaevsk Red #2) with a casing-casing annuli was found that did not have a gauge on casing-casing annuli. Please let us know if this additional time will be allowed to complete this list of wells that do not meet 20 AAC 25.200(C). Should you have any additional questions, please contact Chad Helgeson(777-8405 or chelgeson@hilcorp.com). Sincerely, HILCORP ALASKA, LLC David Wilkins Senior Vice President Hilcorp Alaska,LLC Attachments— Happy Valley B#14 Wellhead Schematic&Wellbore Schematic Happy Valley B#15 Wellhead Schematic&Wellbore Schematic Nikolaevsk Red#1 casing photo, Wellhead Schematic& Wellbore Schematic cc: Jim Regg—AOGCC Chet Starkel-Hilcorp Larry Greenstein—Hilcorp David S Wilkins—Hilcorp Bo York- Hilcorp Stan Golis—Hilcorp Mike Dunn-Hilcorp • S II Happy Valley HV#14 Current 01/05/2016 ILL."p Ua•I...I.U. Happy Valley Tubing hanger,FMC-TC-EN- HV#14 CL,7 X 2 7/8 IBT lift and susp, 10%X75/8X5'AX w/2%Type H BPV,5'A 2 3/8 Extended neck,''/.control line port,Alloy material BHTA,Bowen,2 9/16 5M X 2.5 Bowen quick union 9 iii •� �4-e �4�y,a"- Valve,Swab,WKM-M, .04 •„ +` 29/165M FE,HWO,DD trim `f a`e�<<,” ,b1 e44\ Q .■„■, 1•1111.1.1.11 MA 5 1111111. Cross,stdd,2 9/16 5M X ' 4�, �. = 1 3 1/8 SM `i •� • Q IIP- 3 1/8 5M API stdd Valve,Master,WKM-M, ,��•,� 2 9/16 5M FE,HWO,DD trim - ..i r. NM 110 ,r,1 Valve,Master,WKM-M, ;) 2 9/16 5M FE,HWO,DD trim • ern rr� � I Tubing head,TCM,11 5M X 0.. 41 !1 7 1/16 5M w/2-2 1/16 SM e1 ICI 2 1/16 5M API stdd SSO,7"bottom prep '' {: L ?' ` 51/2 x 2 3/8 is (°)•r' I:1 annulus 1 _ 3E1 .•i_i sir : a■_ Multibowl Wellhead,SMB- I I - p 6i 22,11 5M X 10%SOW,w/ 4-21/165MSSO 1iJ l� I. ■ i r`KOIII' 7 5/8 mandrel hanger and Iflipa (• o . 75/8x5' — 'a` ).packoff installed in head : ` -11 lel II � ill 1 RY_ _ 114 ., %1<(.),: 10%conductor II1 10%" 7 5/8" - 5Y2" 2 3/8 110 H . Happy Valley Well: HV B-14 SCHEMATIC PTD: 212-054 "''e%.rp Alaska,HA. API: 50-231-20036-00 CASING DETAIL Surface Location: KB 610'Above MSL X:223720 Y:2190914 SIZE WT GRADE CONN ID TOP BTM. CMT \ /°" 10-3/4" Weld Surf. 112' None 7-5/8" 29.7 L-80 BTC 6.875 Surf. 998' Surf. 5-1/2" 17 L-80 VAM ST-L 4.892 791' 2,005' 790' I' ® TUBING DETAIL 5-1/2" 17 L-80 VAM ST-L 4.892 Surf. 790' N/A VELOCITY STRING DETAIL Surface Hole: 9-7/8"Hole,9.2 ppg WBM 2-3/8" 4.7# L-80 8rd 1.995 Surf. 1,684' Cement to Surface aisC 1 JEWELRY DETAIL NO DEPTH ID ITEM - ® 1 790' 4.892 JMZX Liner Hanger PERFORATION DETAIL ZONE TOP(MD) BTM(MD) TOP(TVD) BTM(TVD) FT SPF DATE Sterling A 1,689' 1,703' 1,689' 1,703' 14 6 7/30/2012 Production Hole: 6-3/4"Hole,9.2 ppg WBM Cement to TOL @ 790' Sterling A J • - 4"® TD=2,005'MD/TVD PBTD=1,894'MD/TVD Revised 3/31/2014 by TDF • II Happy Valley HV#15 01/05/2016 11.1...4.%I...►,..u,. Happy Valley ,+ Tubing hanger,SMB-22 -Ft/ riil- ported,11 X 5%LC susp X 10%X 7 5/8 X 5 1/2 5.875-4 stub acme left hand lift,5"H BPV,4.930"min bore,7"extended neck BHTA,OTIS,5 1/8 5M X 9%:Otis quick union top O, Valve,Swab, um pig 0k,s WKM-M,5 1/8 5M FE,HWO, a u Ja�ey�'���� ��'c'�Q DD trim ( '( o C' 3 O 42 i I F , --- 4 [ Il,(0—)-11 { . 0 ) L._ s..ill ..s..l Valve,Upper Master WKM-M,5 1/8 5M FE,HWO, ii U DD trim �( o C• . U I., _ii MIMMII Valve,Master,WKM-M, 5 1/8 5M FE,HWO,DD trim (b( a . iTi uI :rilMillim, i i17, ; �� 40 1Iq ! "I"l :1°) 'B�i__D M ' '(�r, � � ''(:11' 7Alu5% : iye r— ° 9! g1fJ llhead, 1 F !ull �_ '•' ' 10%conductor i'i-1 •it\°),• _ iupackoff installed in head p ` •' II 1 I ' 10%" 7 5/8" I 534" • • Happy Valley 11 SCHEMATIC As Completed 10/26/12 Ililrntp%Iml.a.I.IA. Ground Elev:593'Above MSL KB-THF:14.7' 10-3/4" I kp` / I CASING D E TA I L Size Type Wt Grade Conn. ID Top Btm 10-3/4" Conductor 45.5 L-80 - 9.95 Surf 98' t- 7-5/8" Prod Casing 29.7 L-80 Buttress 6.875 Surf 1,139' i';' 5-1/2" Prod Liner 17 L-80 VAM STL 4.892 924' 3,056' tTUBING DETAIL 5-1/2" Production I 17 L-80 VAM STL 4.892 Surf 924' t: `. �, JEWELRY DETAIL No. Depth ID OD Item i 1 924' 4.892" -- JMZX Liner Hanger t 2 2,507' -- -- Comp Bridge Plug to I 3 2,745' -- -- Fish:Weatherford Pulling Tool c WRP Retrievable Plug w/2.875" 4 2,750' -- 4.892" y OD Fishing neck A ir t6 ii, PERFORATION DETAIL Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) Feet SPF Date Status Beluga A 2,360' 2,374' 2,026' 2,036' 14 6 3/13/13 Open Beluga C 2,425' 2,432' 2,074' 2,079' 7 6 3/13/13 Open 6 Beluga D 2,467' 2,487' 2,105' 2,120' 20 6 10/26/12 Open x. Beluga D 2,472' 2,492' 2,109' 2,123' 20 6 12/15/12 Open Beluga E 2,530' 2,535' 2,152' 2,156' 5 6 12/15/12 Isolated Beluga F 2,600' 2,612' 2,205' 2,214' 12 6 12/15/12 Isolated Beluga H 2,812' 2,822' 2,366' 2,373' 10 6 12/15/12 Isolated Beluga I 2,844' 2,848' 2,390' 2,393' 4 6 12/15/12 Isolated 7-5/8" L` 1 1 d. , Beluga A Beluga C Beluga D Beluga D 2' -Beluga E � Beluga F 4 Beluga H Beluga I 5-1/2", L_s __ TD=3,069'MD/2,558'TVD PBTD:2,898'MD/2,431'TVD Updated by DMA 11/24/14 • 111,, P q ,, r°, ,..,.ice y� 1 ii -, I L t"3 1A s 1;s'. 4 lit. Ill""I"NllNWII""4"bllNOileiMilellMM* . ., ...........„,,,,,„.,,,,,,,..,„,„.... „ 4, b ani .,_.................„„. .., , ,„,,„: ),.............„,,_„, .v.„ . ........... , . . „..„. i ba 'F, 4` -* �i �h,,,_ y ~ v Y +^ 9nk a. 4 i r q Nikolaevsk Red#1 wellhead Photo December 9th Casing-casing valve • • Red Pad II Red#1 II,�.,•,I,u.,.L.,.1.1 01/05/2016 Red Pad Tubing hanger,CIW-CXS,11 Red#1 X 3%IBT lift and susp,w/3" 16 x95/8 x 7x 3 Y type H BPV profile,'A"non continuous control line,9'A EN BHTA,Bowen,3 1/8 5M FE x 2%Bowen union top 0 rrn-irTlirrri .§, 5,- e J, co Valve,Swab,CIW-FL, �'��� %' OP �\coc0ac 3 1/8 SM FE,HWO,AA trim "p' e' ys\ to JYU) Ja ti,4 h, C l 1 Iii ei@,eP4 . , , ...../1d— Valve,Upper Master,CIW-FL, /� V 1110 3 1/8 5M FE,HWO,AA trim ,��.' . JZU ill a a t11.n• Valve,Master,CIW-FL, CO' 3 1/8 5M FE,HWO,AA trim �� �� (I .4,C` 10-- fill roil ioimmpl „1 Casing Spool,Cameron MBS- upper,11 5M stdd top and bottom,w/2-2 1/16 5M SSO ir k Lj � _L ;1111. !Eyck V1-0 •[ i t.-1•• 7 x 3%annulus =a■V��U 1 1I�■IE■�' .o`LLL; c Csg head,Cameron MBS- Lower,11 5M x T-103 pocket Ian 1 1e bottom,w/2-2"LPO =/" " (ll1 _1111111 9 5/8 x 7 annulus -Eleimi�t= _II Casing hanger,Surface, Cameron,13 5/8 x 9 5/8 BTC 1 r box bottom x LH acme, w/T-103 neck II f 16 9 5/8" L --3'/," • • • Well Name: Red #1 Field: Wildcat State: Alaska API:50-231-20021 Conductor:16",82.77 ppf,K-55 to AOGCC:204-084 50' 352'FNL&392'FWL Sec.8,T4S,R13W,SM Surface Casing:196s" 9%",47 ppf,L-80, BTC to 1790' RT-THF: 17.22' Cmnt with 110 bbl of 12.8 ppg lead and 45 bbl of 15.8 ppg tail"G" Tbg lift threads-3W IBT Tree cxn-2'W Bowen cxn Intermediate Casing:7",29 ppf,L-80,BTC to 4601' Cmnt with 53 bbl of 12.8 ppg"G"lead Production Tubing:31/4",9.2 ppf,L-80,IBT g g lead and 30 bbl of 15.8 ppg"G"tail. to 4412' 4 -Annulus loaded with 7.4 ppg base oil Completion -Chemical injection sidepocket mandrel at 2502' (Macco SFO-IC-I)with 1/4", 0.049"wall SS chemical injection line -Locator sub @4378' - -Baker 80-40 seal assembly = 13'of 4.00"OD seals — Oben Perfs: -Muleshoe at 4412' T-??:8768'-8777'(6 spf,8/3/04) T-65:8795'-8820'(3 spf,7/23/04) T-??:9056'-9076'(6 spf,8/3/04) Isolated Perfs T-81:9210'-9280'(3 spf,7/19/04) T-130:10565'-10610'(3 spf,7/17/04) Plugs: - -EZ-Drill CIBP at 9192'capped — with 40'of cement(7/23/04) -EZ-Drill CIBP at 10420'(7/19/04) Production Liner:3W,9.2 ppf,L-80,IBT liner from 4379' -10,930' Directional Data: Baker ZXP packer,Flexlock liner hanger& max hole angle=29.1 deg A , 80-40 sealbore at 4373' KOP=4800' Cemented with 209 bbl of 12.0 ppg max dogleg<3 deg/100' PBTD=9152' Litecrete TD=12,458' Red-1 schematic 8-4-2004 Updated by:JGE • e4,' \ 11/% � THE STATE Alaska ail and Gas �✓ �'• °ALAS.., iTe Conserv.tion Commission Sz '- 333 West Seventh Avenue �-r., GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 fooMain: 907.279.1433 ®ALAS•- Fax 907.276.7542 www.aogcc.alaska.gov December 21, 2015 CERTIFIED MAIL— RETURN RECEIPT REQUESTED 7015 0640 0006 0779 5876 Mr. Chad Helgeson Kenai Operations Manager Hilcorp Alaska, LLC P.O. Box 244027 Anchorage, AK 99524-4027 Re: Docket Number: OTH-15-038 Missing Outer Annulus Pressure Gauges Deep Creek Unit Happy Valley B-14 (PTD 2120540) Deep Creek Unit Happy Valley B-15 (PTD 2121320) Nikolaevsk Red #1 (PTD 2040840) Dear Mr. Helgeson: On October 31, 2015 an Alaska Oil and Gas Conservation Commission (AOGCC) Inspector accompanied by a Hilcorp Alaska LLC (Hilcorp) representative performed well safety valve system inspections at the Happy Valley B-pad and Nikolaevsk pad. Three wells —Happy Valley B-14, Happy Valley B-15 and Nikolaevsk Red #1 were not equipped with pressure gauges to monitor the outer annuli. AOGCC performed follow-up inspections at Red #1 on December 9, 2015 and at Happy Valley B-14 and B-15 on December 12, 2015 to determine if the outer annulus pressure gauge issues were resolved. The three wells were again observed to be missing outer annulus pressure gauges. Regulation 20 AAC 25.200(c) requires wellhead equipment to include appropriate gauges and valves installed in the tubing, casing-tubing (inner) annulus, and casing-casing (outer) annuli. The facts reported by the AOGCC Inspectors indicate a failure to equip Happy Valley B-14, Happy Valley B-15, and Nikolaevsk Red #1 with the required pressure gauges. Within 14 days of receipt of this letter, you are requested to provide for AOGCC review and approval a written plan describing what has been or will be done in the future to prevent its recurrence at Hilcorp- operated fields in Alaska. Included in the requested response should be a list of Hilcorp-operated wells that do not have the required pressure gauges as outlined in 20 AAC 25.200(c), and the timeline for installing the required valves. Failure to comply with this request will be an additional violation. • • Notice of Violation Docket Number:OTH-15-038 December 21,2015 Page 2 of 2 The AOGCC reserves the right to pursue additional enforcement action in connection with missing outer annulus pressure gauges on the three listed wells. Questions regarding this letter should be directed to Jim Regg at 907-793-1236. Sincerely, �V Cathy . Foerster Chair, Commissioner cc: AOGCC Inspectors RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a),within 20 days after written notice of the entry of this order or 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 of the matter determined by it. If the notice was mailed,then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration,upon denial,this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction,in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration,this order or decision does not become final. Rather,the order or decision on reconsideration will be the FINAL order or decision of the AOGCC,and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails,OR 30 days if the AOGCC otherwise distributes,the order or decision on reconsideration. In computing a period of time above,the date of the event or default after which the designated period begins to run is not included in the period;the last day of the period is included,unless it falls on a weekend or state holiday,in which event the period runs until 5:00 p.m.on the next day that does not fall on a weekend or state holiday. • kk- 7 Regg, James B (DOA) From: Herrera, Matthew F (DOA) Sent: Wednesday, December 09, 2015 3:00 PM tvlrl(t To: Regg,James B (DOA) Subject: RE: Red #1 Well Completion Report and Schematic Attachments: IMG_1626.JPG;IMG_1627.JPG;IMG_1628.JPG;IMG_1629.JPG Here are some of the pics From: Regg, James B (DOA) Sent: Wednesday, December 09, 2015 2:14 PM To: Herrera, Matthew F (DOA) Subject: RE: Red #1 Well Completion Report and Schematic Ok;thanks. Jim Regg Supervisor, Inspections AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 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 Jim Regg at 907- 793-1236 or jim.regg@alaska.gov. From: Herrera, Matthew F (DOA) Sent: Wednesday, December 09, 2015 2:11 PM To: Regg, James B (DOA) Subject: RE: Red #1 Well Completion Report and Schematic I can swing out there and get better pics with a camera if you'd like driving by there Friday. From: Regg, James B (DOA) Sent: Wednesday, December 09, 2015 1:58 PM To: Herrera, Matthew F (DOA) Subject: RE: Red #1 Well Completion Report and Schematic Did you get any pictures? Jim Regg Supervisor, Inspections AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 1 • • ' 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 Jim Regg at 907- 793-1236 or jim.regg@alaska.gov. From: Herrera, Matthew F (DOA) Sent: Wednesday, December 09, 2015 1:36 PM To: Regg, James B (DOA) Subject: RE: Red #1 Well Completion Report and Schematic Well all they have for an OA valve is a Balon 2" Ball valve with no plug or bushing with a gauge.The IA has a standard Gate valve on each side with a Gauge on one side. From: Regg, James B (DOA) Sent: Wednesday, December 09, 2015 1:32 PM To: Herrera, Matthew F (DOA) Subject: Red #1 Well Completion Report and Schematic This is from of our well files. Not a monobore—should be IA and OA annulus valves and gauges. Jim Regg Supervisor, Inspections AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 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 Jim Regg at 907- 793-1236 or jim.regg@alaska.gov. 2 • eke telek,/$14- d< Pm ZU4O 4 Regg, James B (DOA) From: Regg, James B (DOA) //et 1Z)Ict (1.5- Sent: Wednesday, December 09, 2015 1:32 PM To: Herrera, Matthew F (DOA) Subject: Red #1 Well Completion Report and Schematic Attachments: Red-1 completion rpt and schematic.pdf This is from of our well files. Not a monobore-should be IA and OA annulus valves and gauges. Jim Regg Supervisor, Inspections AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 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 Jim Regg at 907- 793-1236 or iim.regg@alaska.gov. 1 ° ,, STATE OF ALASKA ..`t . _ ALAS AND GAS CONSERVATION COMMIS 41101 '''''''WELL COMPLETION OR RECOMPLETION REPORT AN[ ;±11 la.Well Status: 0119 Gas0 Plugged 9 Abandoned] Suspended 9 WAG0 1b.Well(lass: 20AAC 25.105 20AAC 25.110 Development E Exploratory0 GINJ❑ WINJ0 WDSPL❑ No.of Completions 1 Other Service 9 Stratigraphic Test 2.Operator Name: 5.Date Comp.,Susp.,or 12.Permit to Drill Number: Union Oil Company of California Aband.: July 17,2004 204-084 3.Address: 6.Date Spudded: 13.API Number: PO Box 196247,Anchorage,AK 99519-6247 June 9,2004 50-231-20021 4a.Location of Well(Governmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 352'FNL,392'FWL,Sec.8,T4S,R13W June 28,2004 Red-01 Top of Productive Horizon: 8.KB Elevation(ft): 15.Field/Pool(s): 1,176 FNL,1,564 FWL,Sec.8,T4S,R13W 895'above MSL Total Depth: 9.Plug Back Depth(MD+TVD): Nikolaevsk Unit/Tyonek 1,616 FNL,2,307 FWL,Sec.8,T4S,R13W 9,152/8,831' 4b.Location of Well(State Base Plane Coordinates): 10.Total Depth(MD+TVD): 16.Property Designation: Surface: X=212,798 Y=2,140,995 12,458/12,047' Red Pad TPI: X=213,934,Y=2,140,130 11.Depth Where SSSV Set: 17.Land Use Permit: Total Depth: X=214,668 Y=2,139,672 n/a n/a 18.Directional Survey: Yes 0 No U 19.Water Depth,if Offshore: 20.Thickness of Permafrost: n/a feet MSL n/a 21.Logs Run: 8.5 Quad Combo,6-1/8 PEX,CMR,DSI,MSCT 22. CASING,LINER AND CEMENTING RECORD WT-PER SETTING DEPTH MD SETTING DEPTH ND AMOUNT CASING FT GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 16" 82.77 K-55 0 50' 0' 49' n/a Driven 9-5/8" 47 L-80 0 1,790' 0' 1,789' 12-1/4" 110bbl,12.8ppg lead/45bb1,15.8ppg"G" 7" 29 L-80 0 4,601' 0' 4,600' 8-1/2" 53bbI,12.Bppg lead/30bb1,15.8ppg"G" 3-1/2" 9.2 L-80 0 10,9301 0' 10,551' 6-1/8" 209 bbl of 12.0 ppg Utecrete 23.Perforations open to Production(MD+TVD of Top and Bottom 24. TUBING RECORD Interval,Size and Number;if none,state"none"): SIZE DEPTH SET(MD) PACKER SET(MD) 8768'-8777'(6 spf,8/3/04) 3-1/2",9.2#L-80 4,412' Baker ZXP pkr @ 4,373' 8795'-8820'(3 spf,7/23/04) 9056'-9076'(6 spf,8/3/04) 1 Vis; 25. ACID,FRACTURE,CEMENT SQUEEZE,ETC. AfAir . i DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED 26. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): n/a flowing Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: 8/4/2004 24 Test Period —►0 5777 0 20/64" n/a Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): Press. 1985 0 24-Hour Rate ..-►0 5777 0 n/a 27. CORE DATA Brief description of lithology,porosity,fractures,apparent dips and presence of oil,gas or water(attach separate sheet,if necessary). Submit core chips;if none,state"none". 5736':Ss fg slty; 5792':Ss fg slty; 5814':Ss fg slty; 5826':Ss fg slty; 5854':Ss fg slty spyrt; 6072':Ss f-mg slty; 6138':Ss f-mg vslty; 6334':Ss fg slty; 6390':Ss f-vcg vslty Ig Inds; 6564':Ss fg slty thn lams; 6675':Ss fg slty thn lams; 6772':Ss fg slty; 8810':Ss mg slty thk shy lam; 8814':Ss m- cg slty; 8818':Ss m-vcg slty; 9064':Ss fg slty; 9069':Ss fg slty Ig incls; 9214':Ss mg vslty thn org lams; 9238':Ss m-cg vslty Ig incls; 9285':Ss m- cg vslty Ig incls; 9298':Ss fg vslty; 9308':Ss fg vslty; 9413':Ss fg slty scalc;10068':Ss fg slty scalc;10534':Ss fg slty scalc;10606':Ss fg slty scalc; 10754':Ss fg slty Ig incl scalc; 10768':Ss fg slty scalc;10982':Ss f-vcg scalc; 11245':Ss f-cg slty Ig incls;11677':Ss fg slty thn lams;11681':Ss fg slty;11781':Ss fg slty;11785':Ss fg slty scalc;11790':Ss f-mg sky •11930':Ss fg slty•12260':Ss fg calc frac fll; oa IGINAL mwm ., Form 10-407 Revised 12/2003 CONTINUED ON REVERSE RBDM B WO L 6 70O¢'i G L. 28. GEOLOGIC MARKERS• 29. MA TION TESTS NAME i TVD Include and briefly test results. List intervals tested,and attach detailed supporting as necessary. If no tests were conducted,state Tyonek 5,633 5,613 "None". T20 7,231 7,036 Testing operations summarized in daily operations reports(attached). T25 7,560 7,333 T35 7,711 7,472 T50 8,119 7,851 EL.T40 8,234 7,959 T63 TOP 8,614 8,320 r. T63 BOS 8,625 8,330 T65 TOP 8,798 8,494 T65 BOS 8,818 8,513 T70 TOP 9,047 8,731 T70 BOS 9,075 8,758 : '' '1' T81 TOP 9,210 8,886 30. List of Attachments: Directional Survey,Schematic,Summary of Daily Operations 31 I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Rob Stinson 907-263-7804 Printed Name: Tim C.Brandenburg Title: Drilling Manager G] Signature: .2 ' C: Phone: 907-276-7600 Date: /// i�� INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item la: Classification of Service wells: Gas Injection,Water Injection,Water-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection,Observation,or Other.Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI(Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval(multiple completion),so state in item 1,and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced,showing the data pertinent to such interval). Item 26: Method of Operation: Flowing,Gas Lift,Rod Pump,Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other (explain). Item 27: If no cores taken,indicate"none". Item 29: List all test information. If none,state"None". CONFIDENTIAL Form 10-407 Revised 12/2003 Well Name: Red #1 Field: Wildcat UNOCAL 76 State: Alaska J f„. .„ MI;50-231-20021 I Conductor:16",82.77 ppf,K-55 to AOGCC:204-084 50' 352'FNL&392'FWL Sec.8,T4S,R13W,SM Surface Casin9%:',47 ppf,L-80, BTC to 1137:90' RT-THF: 17.22' Cmnt with 110 bbl of 12.8 ppg lead and 45 bbl of 15.8 ppg tail"G" Tbg lift threads-3W IBT Tree cxn-21/2"Bowen cxn Intermediate Casing:7",29 ppf,L-80,BTC to 4601' Cmnt with 53 bbl of 12.8 ppg"G"lead Production Tubing*3%",9.2 ppf,L-80,IBT g g lead and 30 bbl of 15.8 ppg"G"tail. to 4412' -Annulus loaded with 7.4 ppg base oil Completion -Chemical injection sidepocket mandrel at 2502' (Macco SFO-IC-I)with 1/4", 0.049"wall SS chemical injection line -Locator sub @4378' = -Baker 80-40 seal assembly = Ooen Perfs: 13'of 4.00"OD seals T-??:8768'-8777'(6 spf,8/3/04) -Muleshoe at 4412' T-65:8795'-8820'(3 spf,7/23/04) T-??:9056'-9076'(6 spf,8/3/04) Isolated Perfs T-81:9210'-9280'(3 spf,7/19/04) Plugs: - T-130:10565'-10610'(3 spf,7/17/04) -EZ-Drill CIBP at 9192'capped -^ with 40'of cement(7/23/04) -EZ-Drill CIBP at 10420'(7/19/04) - Production Liner:3W,9.2 ppf,L-80,IBT liner from 4379' -10,930' Directional Data: Baker ZXP packer,Flexlock liner hanger& max hole angle=29.1 deg A , 80-40 sealbore at 4373' KOP=4800' PBTD=9152' Cemented with 209 bbl of 12.0 ppg max dogleg<3 deg/100' TD=12,458' Litecrete Red-1 schematic 8-4-2004 CONFIDENTIAL Updated by:JGE • 0 , N • )11 a 0011 -cs 0 as o >,ca fi v ` 0o a)le gs C Cl C Z CI I IS ea v 0 V a v) .N ' a n 4 •; u W. a o p a.3 z O = o CLI M F. CQ Wo EA fV 4 O .� .�] 00 N C4 ti c .r tn E o a a. tiu O i ::: C/1 cs 4� 3 0 d w L a> VI d v, O R 4 . O V Q.) :o gal O L, x E x ca _ Col .. Bo z w N F U 40 w abp 4-4M H C t. N - o O. (-4 = ISI a.V) M N P. O El) rn On u o 0 O ry y E 'V' Q 1 0" N O w O E o E 3 L a Q z Z .7;' z -- g c ii • Regg, James B (DOA) From: Jones, Jeffery B (DOA) Sent: Saturday, December 12, 2015 11:36 AM kSef I z-( I ill S To: Regg, James B (DOA) Subject: HV-14, HV-15 OA gauges Attachments: IMAG0096 jpg;IMAG0095jpg Jim, I Ler115- I checked &there were no OA gauges on Happy Valley HV-14 & 15. HV-14 cellar was full of snow/ice so I couldn't really see below the IA. The cellar gratings were frozen down & we couldn't get them up. It was dark & with the flash against the grating, the pictures didn't turn out well. It was the middle of the night & couldn't find an operator on either A or B pad so I told Hilcorp Saxon 169 WSL Shane Barber to get with operations & get the cellar cleaned out on HV-14 & install OA gauges on both wells. Jeff Jones AOGCC Petroleum Inspector 907 659 2714 - Office 907 744 4446 - Mobile 0 • Dog -0 t co Ga co 0t a o: U n O °° w '—r R 10 a O O cc cu 0 z z z z o Q - „ o a o w a) O y O O O C O / o p ` w Z z Z, Z v, 44 y a4 au °� 0O Cl) Com+ c 44 ja. a el v v V c o HZ 61o CAo h o it 7 O O E 3 v Q� O d O a O 3 w L w CA C - O O o a S P-4 c 0w 0a Q9. >U., C¢7 c.? Cal a a 3 _. G -74 1 O 7 a) " SG q Q tl = N N vo � Huzzzz al 410 C o ce F U a w a o, -. ea - O. [= ° a a a a o U eu ^� N a a.) — n. E"' Vl N N M CiA cn a" O M M t7 CLH 0.0 0.v) o O O O �n 0. v v v v CO WI LL� L O O O O a g a N un ^ o U '7 r iz N .N-. N W i;4 Z O o N N C aQ Q U a. y of Q L N M R V1 C 3 = cocnoaoa E 0 --- 3 ti OF Tye • • 4. THE STATE Alaska Oil and Gas ti,�►„s1, of A LAsKA Conservation Commission Witt 333 West Seventh Avenue ,100 h'.T GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 trrn Main: 907.279.1433 OF ALAS� Fax: 907.276.7542 www.aogcc.alaska.gov December 21, 2015 CERTIFIED MAIL— RETURN RECEIPT REQUESTED 7015 0640 0006 0779 5876 Mr. Chad Helgeson Kenai Operations Manager Hilcorp Alaska, LLC SCANNED i.16 1 9 2616 P.O. Box 244027 Anchorage, AK 99524-4027 Re: Docket Number: OTH-15-038 Missing Outer Annulus Pressure Gauges Deep Creek Unit Happy Valley B-14 (PTD 2120540) Deep Creek Unit Happy Valley B-15 (PTD 2121320) Nikolaevsk Red#1 (PTD 2040840) Dear Mr. Helgeson: On October 31, 2015 an Alaska Oil and Gas Conservation Commission (AOGCC) Inspector accompanied by a Hilcorp Alaska LLC (Hilcorp) representative performed well safety valve system inspections at the Happy Valley B-pad and Nikolaevsk pad. Three wells — Happy Valley B-14, Happy Valley B-15 and Nikolaevsk Red #1 were not equipped with pressure gauges to monitor the outer annuli. AOGCC performed follow-up inspections at Red #1 on December 9, 2015 and at Happy Valley B-14 and B-15 on December 12, 2015 to determine if the outer annulus pressure gauge issues were resolved. The three wells were again observed to be missing outer annulus pressure gauges. Regulation 20 AAC 25.200(c) requires wellhead equipment to include appropriate gauges and valves installed in the tubing, casing-tubing (inner) annulus, and casing-casing (outer) annuli. The facts reported by the AOGCC Inspectors indicate a failure to equip Happy Valley B-14, Happy Valley B-15, and Nikolaevsk Red #1 with the required pressure gauges. Within 14 days of receipt of this letter, you are requested to provide for AOGCC review and approval a written plan describing what has been or will be done in the future to prevent its recurrence at Hilcorp- operated fields in Alaska. Included in the requested response should be a list of Hilcorp-operated wells that do not have the required pressure gauges as outlined in 20 AAC 25.200(c), and the timeline for installing the required valves. Failure to comply with this request will be an additional violation. Notice of Violation • • Docket Number:OTH-15-03 8 December 21,2015 Page 2 of 2 The AOGCC reserves the right to pursue additional enforcement action in connection with missing outer annulus pressure gauges on the three listed wells. Questions regarding this letter should be directed to Jim Regg at 907-793-1236. Sincerely, PP)7e-&L Cathy . Foerster Chair, Commissioner cc: AOGCC Inspectors RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a),within 20 days after written notice of the entry of this order or 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 of the matter determined by it. If the notice was mailed,then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration,upon denial,this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction,in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration,this order or decision does not become final. Rather,the order or decision on reconsideration will be the FINAL order or decision of the AOGCC,and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails,OR 30 days if the AOGCC otherwise distributes,the order or decision on reconsideration. 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P. _ b N li O m N w m CO W N Wo I J • a) Cl) O.a 0 Q _ a)% Q C a Z o coz • op Lo 1LON N > CO • I- 'o 3 N d •> a) re 0CO 0 CO ( U E .Q C7 O 0 o d a 2 I 0 <- 41, STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMI N i REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon Li Repair Well L Plug Perforations L Perforate L Other L SET CBP Performed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac ❑ Waiver❑ Time Extension❑ Change Approved Program ❑ Operat.Shutdown 0 Stimulate-Other 0 Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development 0 Exploratory 0 212-132 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,Alaska 99504 50-231-20039-00-00 7.Property Designation(Lease Number): 8.Well Name and Number: CO61589 Happy Valley B-15 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A Deep Creek Field/Beluga Pool 11.Present Well Condition Summary: RECEIVED Total Depth measured 3,069 feet Plugs measured 2,507&2,750 feet N 0 V 2 6 2014 true vertical 2,558 feet Junk measured 2,745(fish) feet AOGCC Effective Depth measured 2,743 feet Packer measured N/A feet true vertical 2,313 feet true vertical N/A feet Casing Length Size MD TVD Burst Collapse Structural Conductor 98' 10-3/4" 98' 98' 5,210 psi 2,470 psi Surface Intermediate Production 1,139' 7-5/8" 1,139' 1,072' 6,890 psi 4,790 psi Liner 2,132' 5-1/2" 3,056' 2,549' 7,740 psi 6,390 psi Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) 5-1/2" 17#/L-80 924' 895' Packers and SSSV(type,measured and true vertical depth) N/A N/A N/A N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 3,116 74 0 49 Subsequent to operation: 0 2,997 1 0 76 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run N/A Exploratory p Development Q Service ❑ Stratigraphic 0 Daily Report of Well Operations X 16.Well Status after work: Oil ❑ Gas Q WDSPL❑ GSTOR p WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: Contact Taylor Nasse Email tnasse( hilcorp.com Printed Name L Taylor Nasse Title Operations Engineer Signature �� Phone 907-777-8354 Date ji A c/ jt-i RC!�S Nov 2 2 a (Z. 1 f ( Form 10-404 Revised 10/2012 i.+�7.e//, Submit Original Only Hilcorp Alaska, LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date HVB-15 50-231-20039-00 212-132 10/25/14 10/27/14 Daily Operations: 10/25/2014-Sunday PTW and JSA. Mobe to location and spot equip. Rig up Hal SL lub and P T tp 250 psi low and 1,500 psi high.Well flowing 800K at 105 psi. RIH with 2.50" x 7' DD bailer and tag sand at 2,293'. Work tools and fell to 2,330' wlm. Work tools again and fell to 2,567' wlm. Bailed on obstruction but made no hole. Lost spang action and pulled 1,500 lbs to get free. POOH. Bailer full of sand. RIH w/4.48" GR and 5-1/2" full bore brush to 2,587' slm with no problem. POOH. RIH w/4.63" x 6' dummy plug and sat down at 2,444' slm (2,459' KB). Worked tools and fell thru to 2,565' KB. Worked tools from 2,450' KB to 2,505' KB until tight spot at 2,459' KB cleared up. Made final pass and tagged at 2,587' KB without any problems. POOH. Rig down slickline off well. Rig up Halliburton E-line and PT 250 psi low and 1,500 psi high. MU 5-1/2" comp plug. RIH w/comp plug,tie into log and set down solid at 2,490'. Tried to get past obstruction but could not.There was extra tool wt. It was straight pickup. POOH. Could see where it looked likej plug was hanging up on something at top of plug. Called town and it was decided to modify plug and try again when it was modified. Rig down for standby. 10/27/2014-Tuesday PTW and JSA. Rig up Halliburton SL lub and PT tp 250 psi low and 1,500 psi. Shut in tubing pressure 225 psi. RIH w/2.50" x 15' DD bailer and tag sand at 2,490' slm. Made 5 bailer runs and bailed sand from 2,490' slm to 2,520' slm. RIH w/modified dummy plug and tag fill at 2,511' SLM. POOH. RIH w/2.50" x 15' DD bailer and tag sand at 2,511' slm. Made 6 bailer runs and bailed sand from 2,511' slm to 2,523' slm. RIH w/modified dummy plug and tag fill at 2,533' KB. POOH. Rig down SL lub. RU E line PT to 250 psi low and 1,500 high. RIH with comp bridge plug and tie into log. Set down at 2,509'. Set plug at 2,507'. POOH and rig down E line. Rig up slickline. Mix cement RIH w/ 15' 2.50" Dump Bailer. Slowed to a crawl at 654' SLM. Unable to get past 776'. POOH. Pulling 1,200#. Pump 25 gallons methanol down tubing. RIH W/3.50" GR DRIFT TO 1,000' SLM. No issues. POOH. RIH w/ 15' 2.50" Dump Bailer. S/D @ 2,510' SLM. Shear Bailer. Wait 5 min. POOH. RIH w/ 15' 2.50" Dump Bailer. S/D @ 2,507' SLM. Shear Bailer. Wait 5 min. POOH. OOH w/tools. Begin laying down. • • Happy Valley SCHEMATIC Well: HV B-15 As Completed 10/26/12 Hik•orp Alaska,LLC Ground Elev:593'Above MSL KB-THF:14.7' 10-3/4'° CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 10-3/4" Conductor 45.5 L-80 - 9.95 Surf 98' 7-5/8" Prod Casing 29.7 L-80 Buttress 6.875 Surf 1,139' 5-1/2" Prod Liner 17 L-80 VAM STL 4.892 924' 3,056' TUBING DETAIL 5-1/2" Production 17 L-80 VAM STL 4.892 Surf 924' JEWELRY DETAIL No. Depth ID OD Item 1 924' 4.892" -- JMZX Liner Hanger 2 2,507' -- -- Comp Bridge Plug 3 2,745' -- -- Fish:Weatherford Pulling Tool 4 2,750' 4.892WRP Retrievable Plug w/2.875" OD Fishing neck PERFORATION DETAIL • Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) Feet SPF Date Status Beluga A 2,360' 2,374' 2,026' 2,036' 14 6 3/13/13 _ Open Beluga C 2,425' 2,432' 2,074' 2,079' 7 6 3/13/13 Open Beluga D 2,467' 2,487 2,105' 2,120' 20 6 10/26/12 Open Beluga D 2,472' 2,492' 2,109' 2,123' 20 6 12/15/12 Open Beluga E 2,530' 2,535' 2,152' 2,156' 5 6 12/15/12 Isolated Beluga F 2,600' 2,612' 2,205' 2,214' 12 6 12/15/12 Isolated Beluga H 2,812' 2,822' 2,366' 2,373' 10 6 12/15/12 Isolated Beluga I 2,844' 2,848' 2,390' 2,393' 4 6 12/15/12 Isolated 7-5/8" 11114 1 Beluga A Beluga C =Beluga D t° -�^ Beluga D 2 _Beluga E 3 Beluga F 4 � -Beluga H Beluga I 5-1/2" TD=3,069' MD/2,558'TVD PBTD:2,898' MD/2,431'TVD Updated by DMA 11/24/14 • 2A2- *" of . Landon Ellison Hilcorp Alaska, LLC x-25( 0 ' GeoTech II 3800 Centerpoint Drive, Suite 100 x Anchorage, AK 99503 Tele: 907 777-8339 Fax: 907 777-8510 E-mail: Jellison@hilcorp.com DATE 4/22/2013 RECEIVED APR 2 3 2013 To: Alaska Oil & Gas Conservation Commission Makana Bender AOGGC Natural Resource Technician 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL HAPPY VALLEY B-15 Prints: Dual Spaced Neutron Spectral Density Sonic Porosity Array Compensated True Resistivity Cross Dipole Wave Sonic CBL CD: Final Well Data HAS.HV B15 CBL 10/23/20123:14 PM Adobe Acrobat D... 2,917 KB grjj H'/ 8-153HV10/1512012 1:51 PM Adobe Acrobat D... 1,542 KB E H11_B-15_B144" 10/16/20126:09 AM TIF File 2,387 VII [`! H _B-15_GAMMAR.AY_RHOB 10/16/20126:00 AM LAS File 419 KB KV; B-15_POROSITr' 10/15/20123:34 AM Adobe Acrobat D... 11,748 KB HV_B-15_POR.OSIT`F 10,15/20122:17 PM TIF Image 9,172 KB [- HV B-15_QUAD 10/16/20125:50 AM LAS File 3,973 KB srA HV1_B-15_RESISTPJITY 10,x.5/20123:44 AM Adobe Acrobat ft.. 10,301 KB H-u_B-15_RESISTII.'1Ti'' 10,/15/2012 2:00 PM TIF Image 6,869 KB HV B-15_WA.VESONIC 10/15/20123:32 AM Adobe Acrobat D... 9,329 KB KLB-15_NAVESONIC 10/15/20122:18 PM TIF Image 5,753 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 yj....) Received By: Date: �1211�3 . r , • STATE OF ALASKA RECEIVED ALA.OIL AND GAS CONSERVATION COM,MI ION REPORT OF SUNDRY WELL OPERATIONS APR 16 2013 [1 Operations Abandon ❑ Repair Well LiPlug Perforations ❑ Perforate [' Other H AOG, sC °erformed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac ❑ Waiver ❑ Time Extension❑ Change Approved Program ❑ Operat.Shutdown❑ Stimulate-Other ❑ Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5. Permit to Drill Number: Name: Hilcorp Alaska, LLC Development ❑✓ Exploratory ❑ 212-132 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,Alaska 99503 50-231-20039-00-00 7.Property Designation(Lease Number): Si/V1- 8.Well Name and Number: 0061589 _ C.' 40 Happy Valley B-15 - 9. Logs(List logs and submit electronic and'printed data per 20AAC25.071): 10.Field/Pool(s): GAS '5m N/A Deep Creek Field/Undefined'Sekrpa`Pool 45 11. Present Well Condition Summary: Total Depth measured 3,069' feet Plugs measured 2,750' feet true vertical 2,558' feet Junk measured 2,745' feet Effective Depth measured 2,745' feet Packer measured N/A feet true vertical 2,724' feet true vertical N/A feet Casing Length Size MD TVD Burst Collapse Structural Conductor 98' 10-3/4" 98' 98' 5,210 2,470 Surface , Intermediate Production 1,139' 7-5/8" 1,139' 1,072' 6,890 4,790 Liner 2,132' 5-1/2" 3,056' 2,549' 7,740 6,390 Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) 5-1/2" 17#/L-80 924' 895' Packers and SSSV(type,measured and true vertical depth) N/A N/A N/A N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 2,648 2 0 333 Subsequent to operation: 0 2,647 2 0 510 1.4 Attachments: 15.Well Class after work: i:.}pies of Logs and Surveys Run N/A Exploratory Development L <- Service ❑ Stratigraphic ❑ Daily Report of Well Operations X . 16.Well Status after work: Oil ❑ - Gas 0 WDSPL❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt:313-108 Contact Chris Kanyer Email ckanyerhilcorp.com Printed Name Chris Kanyer Title Reservoir Engineer Signature Air Phone 907-777-8377 Date 4/16/2013 OrRietiNlAOL RMS APR 18 2013 A Y-/g/3 Submit Original Only i • Happy Valley II SCHEMATIC Well: HV B-15 As Completed 10/26/12 HiIcorp Al, ka,LLC Ground Elev:593'Above MSL KB-THF: 14.7' L,, 10-3/4" CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 10-3/4" Conductor 45.5 L-80 - 9.95 Surf 98' 7-5/8" Prod Casing 29.7 L-80 Buttress 6.875 Surf 1,139' 5-1/2" Prod Liner 17 L-80 VAM STL 4.892 924' 3,056' 10 TUBING DETAIL 5-1/2" Production 17 L-80 VAM STL 4.892 Surf 924' ' JEWELRY DETAIL No. Depth ID OD Item 1 924' 4.892 JMZX Liner Hanger 2 2,745 Fish:Weatherford Pulling Tool WRP Retrievable 3 2,750 4.892 Plug w/2.875 OD t'� b, Fishing neck l O PERFORATION DETAIL Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) Feet SPF Date Beluga A 2,360' 2,374' 2,026' 2,036' 14' 6 3/13/2013 k �; Beluga C 2,425' 2,432' 2,074' 2,079' 7' 6 3/13/2013 w r Beluga D 2,467' 2,487' 2,105' 2,120' 20 6 10/26/12 Beluga D 2,472' 2,492' 2,109' 2,123' 20 6 12/15/12 04, Beluga E 2,530' 2,535' 2,152' 2,156' 5 6 12/15/12 r x Beluga F 2,600' 2,612' 2,205' 2,214' 12 6 12/15/12 *, Beluga H 2,812' 2,822' 2,366' 2,373' 10 6 12/15/12 ( Beluga I 2,844' 2,848' 2,390' 2,393' 4 6 12/15/12 4 1 7-5/8" s t" i i Beluga AY Beluga C Beluga D ' Beluga D Beluga E Beluga F 2 3" tAAP FISH Beluga H ' Beluga I 5-1/2" a . . ,'6. TD=3,069' MD/2,558'TVD PBTD: 2,898' MD/2,431'TVD Revised By: TDF 4/16/2013 i • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date HVB-15 50-231-20039-00-00 212-132 3/7/13 3/13/13 Dai O}.yenation : l;t,;l'P,I, y N zF. „ - :. ..�,a.,r a i11b1 Iiii; 3/6/2013-Wednesday No operations to report. 3/7/2013-Thursday Sign in, PTW and JSA. Mobe to B pad. Rig up lubricator and pressure test to 250 psi low and 2,500 psi high. Tubing pressure is 465 psi. RIH with 2-1/2"x 10' and tag fill at,2734' KB. It looks like we have 10' of fill from formation. Bailed both sand from formation (10') and 6' of sand we put on top of plug at 2,750'. Made several attempts to latch plug. Lost weatherford pulling tool several times coming off from GS tool without shearing tool. Still frac sand around plug. Cont bailing and trying to latch plug. Sand was locking GS tool either open or closed on every other run. Put thick grease on tool and it seemd to help. At 6:00 am fished weatherford pulling tool out of well. 3/8/2013- Friday Tried to latch plug with weatherford pulling tool but would not latch._Went back to bailing until get sand slurry out of bailer instead of wet sand at 2,750'. Made several runs until sand slurry was light. Tube pressure hanging around 450 psi. FL- 2,530' RIH with weatherford pulling tool on Pollard GS tool to 2,756' KB. Thought we had latch plug and pulled setting tool loose from GS tool with approx 6 jar licks 1,800 lb. GS had not sheared. Made several attempts before catching pulling tool. Went back to bailing sand with pump bailer at 2,757' KB. Getting soupy sand back in bailer. Sand isn't as thick as before. Bump up against lubricator and line parted. Dropped tool string. Laid lubricator down. Inpected wire and found a bad spot where line parted. Pulled off 100' of line and put new rope socket on. Went back in hole with pulling tool, latched and pulled fish out of hole. All tools recovered. Ran 2-1-2"x7' bailer 3 more times and light sand slurry back. Ran 2.70" LIB down to 2,756' KB. The depths changed the last few runs but do not think plug move down hole. Still have 480 psi on tubing. LIB showed shear screw which is what should be. Ran Weatherford pulling tool down to 2,756' and attempted to latch plug. Pulled up to 1,500 lbs twice and pulled off plug. Tool string wt is 550 lbs. POOH. Inspect weatherford pulling tool. Looks ok. Put knuckle jt above GS tool. RIH with Weatherford pulling tool, GS tool w/knuckle joint on top and attempted to latch plug at 2,756'wlm. Made several attempts latch plug with normal spang down action but could not. POOH and inspected tools. Ran back down to 2,756'wlm and beat down a little firmer and sheared GS tool leaving weatherford pulling tool in well. Cleaned and inspected GS tool. Run in hole to retrieve Weatherford pulling tool. I have Pollard looking for hydrascatic bailer and also see if they can build an equlizing tool. If we can equalize plug than we should be abloe to run just a pulling tool and latch plug. The Weatherford pulling tool is made to equlize and latch plug in one run. Plug should not latch unless equalizing sleeve is push down to insure plug is equalized. I don't have a 5-1/2" WRP here but I have a 4-1/2" out here. I was told that the fishing and equalizing parts are the same OD but different length. When we get pulling tool out of well and think we need to do whatever it takes to double check that the measurements are correct. 3/9/2013-Saturday • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date HVB-15 50-231-20039-00-00 212-132 3/8/13 3/13/13 Daily Operations: 3/13/2013-Wednesday RIH with 4-1/2" GS tool to 2,764' wlm. Worked tools trying to latch pulling tool. Sheared brass pin and pulled out hole. Ran back in with same tool string and I and attempted to catch fish. Ran in hole with GS to 2,764' slm and catch fish. Jarred on fish with 3,800 lbs max jar lick pulled of fish. No free movenent of fish. Ran gauge LIB and it showed fishing neck. RIH with GS and catch Weatherford pulling tool. Just jarring on fish with 2,200 lbs and working up to 3,800 lbs. Jarred at 3,800 lbs 22 times. Slipped off fish while spanging up. POOH and had rounded dogs off GS tool. Replaced dogs and run in hole and latch fish again. Jarred at 3,800 lbs for 1-1/2 hr(24 jar licks). Called town and decision made to shear off and perforate well. Rig down lubricator, put eline lubricator together. Clean up area and wait on e-line. Left approx 8' of slickline and a nipple off kinley cutter 1"wide by 1-7/8"long. Rig up Pollard E-Line lubricator. PT to 250 psi low and 2,500 psi high. TP 534 psi. Arm perf gun. (NOTE:TP has been running between 440 psi to 480 psi). RIH w/3-3/8" (loaded w/3-1/8" perf pods)x7' HC, 6 spf, 60 deg phase and tie into Pollard CBL log dated 23-Oct-12. Spot gun from 2425'to. 2,432' per Final Approved Peri Request Form dated 2/22/13 by D Buthman. TP 534 psi. Fired perf gun. Saw a little psi increase on gauge. Went back to office on A pad 20 min later and well had 547 psi. RIH w/3-3/8" (loaded w/3-1/8" perf pods)x14' HC, 6 spf, 60 deg phase and tie into Pollard CBL log dated 23-Oct-12. Spot gun from 2,360'to 2,374' per Final Approved Peri Request Form dated 2/22/13 by D Buthman. TP 548 psi. Fired perf gun. Tubing pressure start slowly climbing and after 5 min it was 560 psi and 20 min 564 psi. Rig down lubricator and turn well over to production. 3/14/2013 -Thursday No operations to report. 3/15/2013 - Friday No operations to report. 3/16/2013 -Saturday No operations to report. 3/17/2013-Sunday No operations to report. 3/18/2013- Monday No operations to report. 3/19/2013 -Tuesday No operations to report. • • ,„;(9 1%% sv THE STATE Alaska Oil and as 0/ALASKA Conservation Commission GOVERNOR SEAN PARNELL 333 West Seventh Avenue °PALASY°' Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 Chris Kanyer 1 2"' Reservoir Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive Anchorage, AK 99503 Re: Deep Creek Field, Deep Creek Undefined Pool, Happy Valley B-15 Sundry Number: 313-108 Dear Mr. Kanyer: 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 Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely del 1. K.No .an C.tip'ssioner DATED this day of March, 2013. Encl. 0 RECEIVED • STATE OF ALASKAGamV., ALASKA OIL AND GAS CONSERVATION COMMISSION �� Af� Q ` ZOO APPLICATION FOR SUNDRY APPROVALS "C'���L`� 20 AAC 25.280 1.Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well❑ Change Approved Program ❑ Suspend ❑ Plug Perforations 7 "x•13 Perforate Q . Pull Tubing❑ Time Extension ❑ 3• Operations Shutdown ❑ Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing ❑ Other: Plug Back 0 .,.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: F Iilcorp Alaska,LLC Exploratory ❑ Development ❑✓ 212-132—t S_Address: Stratigraphic ❑ Service ❑ 6.API Number. 3800 Centerpoint Drive,Anchorage AK,99503 50-231-2039-00-00 . 7. If perforating: 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? CO 666 Will planned perforations require a spacing exception? Yes ❑ No Q Happy Valley B-15 ' 19.Property Designation(Lease Number): 10.Field/Pool(s): Par cKu- u.-)OcLiA/tcp 13 CO61589 • Deep Creek Field/B�Jaga'Pool 11. • PRESENT WELL CONDITION SUMMARY •Total Depth MD(ft): Total Depth TVD(ft): 'Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 3,069 ' 2,558 • I 2,743 2,313 2,750' 2,743'(Sand) Casing Length = Size MD TVD Burst Collapse Structural Conductor 98' 10-3/4" 98' 98' 5,210psi 2,470psi Surface Intermediate Production 1,139' 7-5/8" 1,139' 1,072' 6,890psi 4,790psi Liner 2,132' 5-1/2" 3,056' 2,549' 7,740psi 6,390psi Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 5-1/2" 17#/L-80 924' Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): JMZX Liner Packer Hanger&N/A 924'(MD)&895'(TVD)and N/A X12.Attachments: Description Summary of Proposal Q 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic❑ Development 0 • Service ❑ 4.Estimated Date for15.Well Status after proposed work: • Commencing Operations: 3/5/2013 Oil ❑ Gas 0 WDSPL ❑ Suspended ❑ I--. Verbal Approval: Date: N/A WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ 'commission Representative: N/A GSTOR ❑ SPLUG ❑ �11 . I hereby certify that the foregoing is true and correct to the best of my knowledge. . Contact Shane Bennett Email sbennett(a,hilcorp.com !`I rinted Name s' ChriKanyer Title Reservoir Engineer I_i3nature ' ,,f4 Z'v :--1 Phone 777-8377 Date 3/4/2013 COMMISSION USE ONLY L:onditions of approval: Notify Commission so that a representative may witness Sundry Number: -3.1 .....,10('y }u( Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: is • !�fi s MAR 0 7 2013? ' lipacing Exception Required? Yes ❑ o [✓ : bsequent Form Required: Jo f°y i APPROVED BY [Approvedr / by: COMMISSIONER THE COMMISSION Date: 3/ s... II Su mit Form and 0 Rif is d /2q�2) Ap. oved application is valid for 12 months from the date of proval. Attachments in Duplicate f� 7 L 3•S•'3 sSF Pia .,"*",y ,0- ,13 31 S • Well Prognosis Well: HVB-15 Hilcorp Alaska,LL, Date:3/1/2013 Well Name: Happy Valley B-15 API Number: 50-231-20039-00-00 Current Status: Flowing gas completion Leg: N/A Estimated Start Date: March 5, 2013 Rig: N/A Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Tom Fouts 777-8398 Permit to Drill Number: 212-132 First Call Engineer: Shane Bennett (907) 777-8425 (0) (325) 203-7487 (M) Second Call Engineer: Chris Myers (907)777-8333 (0) (907) 398-9955 (M) AFE Number: Current Bottom Hole Pressure: —575 psi Maximum Expected BHP: —575 psi @ 2,053' TVD (Based on PBU of BLG D sand on 11/9/12) Max.Allowable Surface Pressure: —549 psi (Based on 0.013 psi/ft gas gradient) Brief Well Summary This well was drilled and completed as a gas well in October 2012.The well was initially perforated in the Beluga D sand.Subsequent perforations were added in the Beluga D, E, F, H, & I sands in December 2012.The well began producing water and a flowing pressure/temperature survey was run and retrievable bridge plug was set above the Beluga H & I sands.The well is currently flowing and is producing^'3bwpd. The proposed completion plan is to pull the bridge plug and reset it below Beluga H sands, re-opening it to production.After a short flow test period, perforations will be added in the Beluga A&C sands. Following a flow test of these intervals Beluga A through H sands),the Sterling A sand will be added. Summary Procedure 1. RU slickline and test lubricator to 250psi low/2,500psi high. 2. Bail sand and pull WRP from 2,750' (opening Beluga H & I sands). 3. RD slickline. 4. RU E-line and test lubricator to 250psi low/2,500psi high. 5. RIH &Set CIBP at+/-2,830' (re-isolating Beluga I sand). 6. Perforate Upper Beluga A&C sands from +/-2,424'to+/-2,431' &+/-2,360'to+/-2,374'. 7. RD Eline. 8. Flow test well. Run Pressure/Temp survey. 9. RU E-line and test lubricator to 250psi low/2,500psi high. 10. Perforate Sterling A sand from+/-1,909'to+/-1,933' 11. RD Eline. 12. Flow test well. Run Pressure/Temp survey. Attachments: 1. As-built Well Schematic 2. Proposed Well Schematic • • Happy Valley II SCHEMATIC well: HV B-15 As Completed 10/26/12 11111.01p tIPAP.i.i.c Ground Elev:593'Above MSL KB-THF: 14.7' 10-3/4" CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 10-3/4" Conductor 45.5 L-80 - 9.95 Surf 98' 7-5/8" Prod Csg 29.7 L-80 Buttress 6.875 Surf 1,139' 5-1/2" Prod Lnr 17 L-80 VAM STL 4.892 924' 3,056' TUBING DETAIL 5-1/2" Production 17 L-80 VAM STL 4.892 Surf 924' JEWELRY DETAIL No. Depth ID OD Item ', 1 924' 4.892 - JMZX Liner Packer Hanger Weatherford WRP 2 2,750 4.892 Retrievable Plug w/2.875 OD Fishing Neck PERFORATION DETAIL Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) Feet SPF Date 2,467' 2,487' 2,105' 2,120' 20 6 10/26/12 Beluga D 2,472' 2,492' 2,109' 2,123' 20 6 12/15/12 Beluga E 2,530' 2,535' 2,152' 2,156' 5 6 12/15/12 Beluga F 2,600' 2,612' 2,205' 2,214' 12 6 12/15/12 Beluga H 2,812' 2,822' 2,366' 2,373' 10 6 12/15/12 Beluga I 2,844' 2,848' 2,390' 2,393' 4 1 6 12/15/12 7-5/8" Eff5 1 AE Beluga Main Beluga D Beluga E Beluga F 2 4 Top of Sand placed @2,743' at Beluga H Beluga I 5-1/2" 4 h TD=3,069' MD/2,558'TVD PBTD: 2,898' MD/2,431'TVD Revised By:TDF 12/28/2012 s 410 • Happy Valley • PROPOSED Well: HV B-15 As Completed 10/26/12 Hilcorp Alaska,LLC Ground Elev:593'Above MSL KB-THF:14.7' 10-3/4j l � ` CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 10-3/4" Conductor 45.5 L-80 - 9.95 Surf 98' 7-5/8" Prod Casing 29.7 L-80 Buttress 6.875 Surf 1,139' 5-1/2" Prod Liner 17 L-80 VAM STL 4.892 924' 3,056' TUBING DETAIL 5-1/2" Production 17 L-80 VAM STL 4.892 Surf 924' JEWELRY DETAIL No. Depth ID OD Item 1 924' 4.892 - JMZX Liner Hanger 2 ±2,830 4.892 CIBP PERFORATION DETAIL Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) Feet SPF Date Sterling A ±1,909' ±1,933' ±1,690' ±1,708' 22' 6 Future Beluga A ±2,360' ±2,374' ±2,026' ±2,036' 14' 6 Future Beluga C ±2,424' ±2,431' ±2,073' ±2,078' 7' 6 Future Beluga D 2,467' 2,487' 2,105' 2,120' 20 6 10/26/12 Beluga D 2,472' 2,492' 2,109' 2,123' 20 6 12/15/12 Beluga E 2,530' 2,535' 2,152' 2,156' 5 6 12/15/12 Beluga F 2,600' 2,612' 2,205' 2,214' 12 6 12/15/12 Beluga H 2,812' 2,822' 2,366' 2,373' 10 6 12/15/12 Beluga I 2,844' 2,848' 2,390' 2,393' 4 6 12/15/12 7-5/8" 1 r rt t? Sterling A k< r I; Beluga A � Beluga C P„ Beluga D ABeluga D te ii: ;Beluga E Beluga F 2 i' C 16P Beluga H 4 • Beluga I 1, a 5-1/2" dlina . TD=3,069' MD/2,558'TVD PBTD:2,898' MD/2,431'ND Revised By:TDF 3/1/2013 • 111 Davies, Stephen F (DOA) From: Luke Keller[Ikeller@hilcorp.com] Sent: Tuesday, February 12, 2013 2:42 PM To: Davies, Stephen F (DOA) Subject: RE: HAPPY VALLEY B-15: Surface Location Attachments: 123108 HVB 15_SLD_NAD27.pdf Steve, I apologize for the confusion here. The measurements from governmental section coordinates were either miss-typed or we had some kind of software error when calculating them on the APD. The 10-407 is correct. The NAD 27 X/Y coordinates between the 10-407 and 10-401 are the same, but somehow the conversion to governmental section coordinates was made in error when the APD was developed. I have attached the official Plat done by McLane Surveyors. The correct information for the well is: Surface Hole Location: 2972' FSL, 322' FEL,Sec 21,T2S, R13W, SM (NAD 27 X-223686,Y-2190942) Top of Productive Horizon: 1350' FSL, 710' FEL, Sec 21,T2S, R13W,SM (NAD 27 X-223293.7, Y-2189980) BHL: 903' FSL, 834' FEL, Sec 21,T2S, R13W, SM (NAD 27 X-223150, Y-2189533) Furthermore, I will send you some information I have on some new survey data we have obtained for Swanson River. We are having some of the wells resurveyed and finding differences from existing well information. Luke Keller Drilling Engineer Hilcorp Alaska, LLC 907-777-8395 From: Davies, Stephen F (DOA) [mailto:steve.davies(aalaska.gov] Sent: Tuesday, February 12, 2013 1:30 PM To: Luke Keller Subject: HAPPY VALLEY B-15: Surface Location Luke, Could you help me? I'm reviewing the Well Completion Report submitted by Hilcorp on Nov. 21, 2012 for Happy Valley B-15. The surface location for B-15 is listed on this report as being 2972 FSL, 322 FEL, Sec 21,T2S, R13W, SM. On the Permit to Drill Application, the surface location is listed as 2328 FSL, 336 FEL,Sec 21,T2S, R13W, SM. 1 Can you tell me which location is correct? I tried to check these coordinates myself by paging through the AOGCC's file for the well, but the only copy of the survey plat (certified by a registered surveyor)that I could find was for the B-14 conductor. Could you please submit a copy of this plat that is required by 20 AAC 25.070? Please note that 20 AAC 25.015 (a)(1) requires a new application for a Permit to Drill if the proposed surface location is changed. Changing the surface location without prior AOGCC approval is a violation of this regulation. If the surface location was moved, could you please explain why? Could you also please check the other coordinates for the well (top productive interval and TD)? Thanks, Steve Davies AOGCC 907-793-1224 2 • ! SECTION 16 S16 S15 e ''. 1 SECTION 21 NOT TO SCALE S21 522 NOTES \1 N2193883.891 SECTION 21 E224090.975 1.BASIS OF HORIZONTAL COORDINATES ISA NGS OPUS SOLUTION FOR FOR CP4(HV A PAD)N:2189773.527 TOWNSHIP 2 SOUTH E:1368091.079 ALASKA STATE PLANE(ASP)ZONE 4 NADB3 EPOCH 2003.COORDINATES CONVERTED TO NAD27 USING RANGE 13 WEST CORPCONS VERSION 6.0.1 SOFTWARE. 2.BASIS OF ELEVATION IS CP4 ELEV.718.375 FT.COMPUTED SEWARD MERIDIAN USING GEOID09 FROM THE OPUS SOLUTION. 3)SECTION LINE OFFSETS DERIVED FROM PROTRACTED ALASKA `\ SECTION CORNER POSITIONS. / \\4\.SURVEY WAS PERFORMED BY MCI ON 9/11/12. J/ J <L �/ O N N ��‘�X I I CD N 04';h. O// �O O O •% � �1 ///-/ �o 0)v) ��._Q F... Al BVI o%i � v°� � ,`P.•• �I� ..., /i r° /'�„ 0/ ���' °v . 49TH i‘ i // / s� � °/ // .0 ° M. SCOTT McLANE, •-•�ff /o�%// ; \� v LSF ••. 4928—S .••Az-- -. /° /' / oN /, i,�o pR.6/9/I2.�P�o�`/° moo c,. , # o ' 4 F�pee \":r%'"'" . aor Ess I WO- %� ",x;�N e,® ' ®��' Accfss Rogo To iV A PqO so- ioM4 ." • 0 / //- ,/ -',y, .ria ///,/, vS 7 % ee' O////iOSA .. O 6AV . Q '// //' o/ ,,,,,,:0\\00,,,,,,,,c)0, ,(\t‘...\,9:3:\.4 / \0 /(,)// :::, ��� 322'FEL !` ' /o/ ( 0:\,,,,, 0 ;,,;'-/!X!//,1YO// /° i //i' ii/O ° /i \o '\. a ; o/ HAPPY VALLEY NO. 15 9 o// CENTER CONDUCTOR 0 o/�,' NAD27 ASP ZONE 4 0 , _'S0 ' N:2190920.556 \ ;;-fir 0 ' y0 °/ E:223705.412 SCALE °v\ �Z.7 LAT: 59°59'19.082"N 0, LONG:151°30'31.993"W 0 100 200 ELEV. 593.5' NAVD88 FEET HAPPY VALLEY NO. 15 WELL AS-BUILT SURFACE LOCATION NINILCHIK, AK NAD27 r44ENGINEERING-TESTINGProject: 123108 SURVEYING-MAPPING P.O.BOX 468 HI 00111 Alaska, LI 71 M c C. SOLDO(907)NA, 28 -4218 Revisions: 3800 Centerpoint Drive 99669 VOICE: 283-4218 p FAX:(907)283-3265 Anchorage, AK 99503 Consulting Inc WWW.MCLANECG.COM Dwg:123108 I Date: 09/11/12 APPLICANT: RECEIVFD STATE OF ALASKA AL.OIL AND GAS CONSERVATION COM ION JAN 18 ZU1 REPORT OF SUNDRY WELL OPERATIONS AOGGC 1.Operations Abandon J Repair Well Li Plug Perforations Perforate u Other J Performed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac ❑ Waiver ❑ Time Extension❑ Change Approved Program ❑ Operat.Shutdown❑ Stimulate-Other ❑ Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5. Permit to Drill Number: Name: Hilcorp Alaska, LLC Development ❑✓ Exploratory ❑ 212-132 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,Alaska 99504 50-231-20039-00-00 7.Property Designation(Lease Number): -' /1) 8.Well Name and Number: C061589 re.c. c r n,l / .t Happy Valley B-15 9.Logs(List logs and submit electronic and printed data per/20AAC25.071): 10.Field/Pool(s): , N/A Deep Creek Field/Beluga Pool 11.Present Well Condition Summary: Total Depth measured 3,069' feet Plugs measured 2,743' feet true vertical 2,558' feet Junk measured 2,313' feet Effective Depth measured 2,743' feet Packer measured N/A feet true vertical 2,313' feet true vertical N/A feet Casing Length Size MD TVD Burst Collapse Structural Conductor 98' 10-3/4" 98' 98' 5,210 2,470 Surface Intermediate Production 1,139' 7-5/8" 1,139' 1,072' 6,890 4,790 Liner 2,132' 5-1/2" 3,056' 2,549' 7,740 6,390 Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) 5-1/2" 17#/L-80 924' 895' Packers and SSSV(type,measured and true vertical depth) N/A N/A N/A N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 2,250 0 0 373 Subsequent to operation: 0 1,870 3 0 315 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run N/A Exploratory❑ Development❑ - Service ❑ Stratigraphic ❑ Daily Report of Well Operations X 16.Well Status after work: Oil ❑ Gas ❑� WDSPL❑ GSTOR Li WINJ ❑ WAG ❑ GINJ Li SUSP❑ SPLUG❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: Contact Chad Helgeson Email chelgeson(a�hilcorp.com Printed Name Chad Helgeson Title Operations Engineer Signature ,,,,,..27,../.---,_1":„.._ f79` �,..ily� Phone 907-777-8405 Date 1/17/2013 ' RBGMS JAN 28 201 Form 10-404 Revised 10/2012 Submit Original Only C • • Hilcorp Alaska, LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date HVB-15 50-231-20039-00 212-132 12/15/12 12/15/12 Daily Operations: 12/15/2012 -Saturday Spot equipment. RU lubricator and test to 450 psi.RIH with 3-3/8" x 4' HC, 6 spf, 60 deg phase perf gun and tie into Pollard CBL log dated 23-Oct-12. Spot gun from 2,844'to 2,848' per Final Approved Perf Request Form dated 12/12/12. Well flowing 800 mcf. Fired gun with 462 psi. POOH. All shots fired and no psi change. Shut well in. RIH with 3-3/8" x 10' HC, 6 spf, 60 deg phase perf gun and tie into Pollard CBL log dated 23-Oct-12. Spot gun from 2,812' to 2,822' per Final Approved Perf Request Form dated 12/12/12. Fired gun with 475 psi. POOH. All shots fired. No pressure change. RIH with 3-3/8" x 12' HC, 6 spf, 60 deg phase perf gun and tie into Pollard CBL log dated 23-Oct-12. Spot gun from 2,600' to 2,612' per Final Approved Perf Request Form dated 12/12/12. Fired gun with 560 psi. POOH. All shots fired. RIH with 3-3/8" x5' HC, 6 spf, 60 deg phase perf gun and tie into Pollard CBL log dated 23-Oct-12. Spot gun from 2,530' to 2,535' per Final Approved Perf Request Form dated 12/12/12. Fired gun with 560 psi. POOH. All shots fired. RIH with 3-3/8" x 20' HC, 6 spf, 60 deg phase perf gun and tie into Pollard CBL log dated 23-Oct-12. Spot gun from 2,472'to 2,492' per Final Approved Perf Request Form dated 12/12/12. Fired gun with 560 psi. POOH. All shots fired. Rig down lubricator and turn well over to production. 12/21/2012 -Sunday Rig up lubricator. Pressure test lubricator with well pressure to 300 psi. RIH w/4.75" GR and could not get past top perf zone @ 2,467'. POOH. Ran in hole with a 4.55" OD slickline hard centralizer down to 2,850'. POOH. Bring well back on production while waiting on Weatherford. Make up 4.48" OD WRP and setting tool. RIH with WRP and tie into Pollard Perf Record dated 15-Dec-12 and set plug at 2,750'. Show good set. POOH.The OD of the fishing neck is 2.875" and length is 5". RIH with 4"x20' bailer and dump 6.8' of sand on top of plug at 2,750'. Rig down lubricator. Clean up area. Drop 3 soap sticks.Turn well over to production. • • Happy Valley SCHEMATIC Well: HV B-15 As Completed 10/26/12 Ilikorp Alaska,LLC Ground Elev:593'Above MSL KB-THF:14.7' .1a % +,t` 10-3/4"4.1 ; CASING DETAIL Size Type Wt Grade Conn. ID Top Btm Y 10-3/4" Conductor 45.5 L-80 - 9.95 Surf 98' 7-5/8" Prod Csg 29.7 L-80 Buttress 6.875 Surf 1,139' f' 5-1/2" Prod Lnr 17 L-80 VAM STL 4.892 924' 3,056' ', ' TUBING DETAIL +- 5-1/2" Production 17 L-80 VAM STL 4.892 Surf 924' JEWELRY DETAIL No. Depth ID OD Item i 1 924' 4.892 - JMZX Liner Hanger Weatherford WRP 2 2,750 4.892 Retrievable Plug w/2.875 ' OD Fishing Neck r W 1 PERFORATION DETAIL Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) Feet SPF Date Beluga Main 2,467' 2,487' 2,105' 2,120' 20 6 10/26/12 Beluga D 2,472' 2,492' 2,109' 2,123' 20 6 12/15/12 Beluga E 2,530' 2,535' 2,152' 2,156' 5 6 12/15/12 P Beluga F 2,600' 2,612' 2,205' 2,214' 12 6 12/15/12 i Beluga H 2,812' 2,822' 2,366' 2,373' 10 6 12/15/12 Beluga I 2,844' 2,848' 2,390' 2,393' 4 6 12/15/12 a r 7-5/8" A x` e t is R ks r - Beluga Main Beluga D e r Beluga E Beluga F 2 la r- _ Top of Sand placed @2,743' <. Beluga H Beluga I 4 5 .m 5-1/2" '''I ". TD=3,069' MD/2,558'ND PBTD:2,898' MD/2,431'ND Revised By:TDF 12/28/2012 • • Page 1 of 2 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Thursday, January 03, 2013 11:52 AM To: 'Paul Mazzolini'; 'Luke Keller' Subject: RE: HV-15 (PTD 212-132) Paul, I got the vendor reports. They fill in most of the blanks but still lacking in some details. Make sure the rig supervisors are capturing all the needed data during these critical steps. SLB did not report the volume of cement returned to surface on the 7 5/8" casing which I use to calculate any over displacement issues. Also volumes of displacement fluid were not recorded for surface casing.. although they never bumped the plug. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Schwartz, Guy L (DOA) Sent: Thursday, January 03, 2013 8:27 AM To: 'Paul Mazzolini'; Luke Keller Subject: RE: HV-15 (PTD 212-132) Paul, I have the tallys for both but the daily summary doesn't include enough detail for me to access if job went as planned and was successful. I need volumes preflush/cement pumped , return ratio, pipe movement if done, cement to surface volumes , etc. I think the daily reports given are ok ... but when cementing the detail needs to go up a notch. For production liner did you consider running a CBL to confirm TOC? Hard to tell based on what was given in the report .. returns or est TOC not mentioned. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Paul Mazzolini [mailto:pmazzolini@hilcorp.com] Sent: Wednesday, January 02, 2013 4:50 PM To: Luke Keller; Schwartz, Guy L (DOA) Subject: RE: HV-15 (PTD 212-132) Guy, Guy do you have the casing tally for the surface and production casing strings? If not we will include with the cementing reports. Let me know if you require any additional information. Mazz 1/3/2013 • • Page 2 of 2 From: Luke Keller Sent: Wednesday, January 02, 2013 4:29 PM To: 'guy.schwartz@alaska.gov'; Paul Mazzolini Subject: Re: HV-15 (PTD 212-132) Guy, Will do. I am down in Texas right now but will get our drilling tech on it asap. Luke From: Schwartz, Guy L (DOA) [mailto:guy.schwartz@alaska.gov] Sent: Wednesday, January 02, 2013 07:15 PM Central Standard Time To: Luke Keller Subject: HV-15 (PTD 212-132) Luke, Do you have the vendor cementing reports for the surface casing and prod liner for HV-15 . there is not enough detail in the 407 report. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) 1/3/2013 ., • )ob Report � CemCAT v1.3 Schlumberger p Well Client S r. Field SIR No. 7 es Engineer Job Type Country Job Date S l-' rs C c._r i....7__ Time Pressure Rate Density Messages 10,03/2012 08:39:59 lr 08:39:54 —___ 2.5 bbl H2O ahead 08:50:00 ( Pressure Test Casing ,j start mudpush pumping gravity-will not see mudpush w 09:00:00 r end mudpush batch-up 12 ppg lead cement Reset Total,Vol=38.57 bbl 09:10:00 done batching-up at 09:15-12.07 ppg drop bottom oluo start pumping lead 09:20:00 r ti 1 09:30:00 • l s 09:40:00 -1=== end lead cement Batch-up 15.4 ppg tail cement Reset Total,Vol=82.07 bbl ti� 09:50:00 T start pumping tail IMMIIIIII i 20 bbl into tail-started getting mudpush 10:00:00 ..o'— end pumping tail cement-10:00 am Drop Top Plug Reset Total,Vol=25.47 bbl pump 2 bbl H2O behind turn-over to rig for displacement Reset Total,Vol=2.05 bbl 10:10:00 rig start pumping '. cement to surface at 10:14 —V 0` • 10:20:00 10:30:00 plug did not bump checked floats-holding-no returns 10:41:37 Stopped Acquisition hh:mm:ss 0.00 1000 2000 3000 4000 5000 0.00 2.0 4.0 6.0 8.0 10.0 5.0 10.0 15.0 20.0 25.0 10/08 12 MAI, PSI _ __----B/M LB/G 11/28/2012 12:41:48 ' SchiumbergerCementing Service port Customer Job Number HILCORP HV-B-15 Well Location(legal) Schlumberger Location Job Start HV-B-15 15 ANC Oct/08/2012 Field Formation Name/Type Deviation Bit Size Well MD Well TVD HAPPY VALLEY 1139.0 ft County State/Province AK BHP BHST BHCT Pore Press.Gradient Well Master API/UWI Rig Name Drilled For Service Via Casing/Liner GAS LAND Depth,ft Size, Weight, Grade Thread Offshore Zone Well Class Well Type 1139.0 NEW GAS 0.0 Drilling Fluid Type Max.Density Plastic Viscosity Tubing/Drill Pipe. 15.00 lb/gal Depth, Size, Weight, Grade Thread Service Line lob Type Cementing SURFACE Max.Allowed Tub. Max.Allowed Ann.Press WH Connection Perforations/Open Hole 2000 psi 7 5/8 HEAD Top, Bottom, No.of Shots Total Interval Service Instructions 84 BBLS LEAD 12PPG Diameter 25 BBLS TAIL 15.4 PPG Treat Down Displacement Packer Type Packer Depth CASING 46.5 bbl Tubing Vol. Casing Vol. Annular Vol. Openhele Vol. 46.5 bbl Casing/Tubing Secured x❑ 1 Hole Vol.Circulated prior to Cement X❑ Casing Tools Squeeze Job Lift Pressure Shoe Type Squeeze Type Pipe Rotated E Pipe Reciprocated ❑ Shoe Depth Tool Type No.Centralizers Top Plugs Bottom Plugs Stage Tool Type Tool Depth Cement Head Type Stage Tool Depth Tail Pipe Size Job Scheduled For Arrived on Location Leave Location Collar Type Tail Pipe Depth Oct/08/2012 Oct/08/2012 Oct/08/2012 Collar Depth Sqz.Total Vol. Date Time Treating Flow Density Volume Message 24-hr Pressure Rate LB/G BBL clock PSI B/M 10/08/2012 08:38:44 Started Acquisition 10/08/2012 08:39:54 41 0.0 8.24 0.0 10/08/2012 08:40:14 42 0.0 8.25 0.0 10/08/2012 08:40:44 41. 0.0 8.24 0.0 10/08/2012 08:41:14 41 0.1. 8.32 0.0 10/08/2012 08:41:44 42 0.0 8.35 0.1 10/08/2012 08:42:14 41 5.3 8.38 1.8 10/08/2012 08:42:44 41 0.2 8.37 2.3 10/08/2012 08:43:14 41 0.2 8.37 2.4 10/08/2012 08:43:44 44 0.0 8.37 2.4 10/08/2012 08:44:14 42 0.0 8.37 2.4 10/08/2012 08:44:44 79 1.3 8.37 2.4 10/08/2012 08:45:07 2.5 bbl H20 ahead 10/08/2012 08:45:07 160 2.7 8.37 3.2 10/08/2012 08:45:14 186 3.2 8.37 3.6 10/08/2012 08:45:44 87 0.0 8.37 4.4 10/08/2012 08:46:14 69 0.0 8.37 4.4 10/08/2012 08:46:44 63 0.0 8.38 4.4 10/08/2012 08:47:14 62 0.0 8.37 4.4 10/08/2012 08:47:44 64 0.0 8.37 4.4 10/08/2012 08:48:14 102 0.0 8.37 4.4 Page 1 of 7 40 Well Field Job Start I Customer Job Number HV-B-15 15 HAPPY VALLEY Oct/08/2012 iHILCORP HV-B-15 Date Time 1 Treating 1 flow 1 Density Volume 1 Message 24-hr Pressure 1 Rate LB/G BBL 55Y. clock `^ griIPSI ' « -rer BM " A.'' '9,>•'6,4'.. 'i*`u' x. 4 - <it r .- y,'' n'c,14 74 10/08/2012 08:48:47 Pressure Test Casing 10/08/2012 08:48:47 1852 0.0 8.37 4.5 10/08/2012 08:49:14 3357 0.0 8.37 4.5 10/08/2012 08:49:44 3338 0.0 8.36 4.5 10/08/2012 08:50:14 3328 0.0 8.37 4.5 10/08/2012 08:50:44 3323 0.0 8.36 4.5 10/08/2012 08:51:14 85 0.0 8.36 4.5 10/08/2012 08:51:44 61 0.0 8.36 4.5 10/08/2012 08:52:14 62 0.0 8.36 4.5 10/08/2012 08:52:44 61 0.0 8.36 4.5 10/08/2012 08:53:14 60 0.0 8.36 4.5 10/08/2012 08:53:44 61 0.0 8.36 4.5 10/08/2012 08:54:14 61 0.0 8.36 4.5 10/08/2012 08:54:44 61 0.0 8.36 4.5 10/08/2012 08:55:14 68 0.8 8.36 4.5 10/08/2012 08:55:22 start mudpush 10/08/2012 08:55:22 88 1.6 8.37 4.7 10/08/2012 08:55:44 142 4.2 8.36 5.9 10/08/2012 08:56:14 88 0.9 8.37 7.4 10/08/2012 08:56:44 118 2.3 8.37 8.1 10/08/2012 08:57:14 146 3.5 8.37 9.8 10/08/2012 08:57:44 142 3.8 8.37 11.7 10/08/2012 08:58:14 159 3.8 8.37 13.6 10/08/2012 08:58:44 166 3.8 8.37 15.5 10/08/2012 08:59:01 pumping gravity-will not see mudpush weight 10/08/2012 08:59:01 146 3.8 8.37 16.6 10/08/2012 08:59:14 143 4.3 8.37 17.5 10/08/2012 08:59:44 172 4.3 8.37 19.6 10/08/2012 09:00:14 160 4.3 8.37 21.8 10/08/2012 09:00:44 155 4.3 8.37 23.9 10/08/2012 09:01:14 181 4.3 8.37 26.0 10/08/2012 09:01:44 166 4.3 8.37 28.1 10/08/2012 09:02:14 176 4.3 8.37 30.3 10/08/2012 09:02:44 176 4.3 8.38 32.4 10/08/2012 09:03:14 156 4.3 8.37 34.5 10/08/2012 09:03:44 134 3.4 8.37 36.6 10/08/2012 09:04:14 142 3.4 8.37 38.3 10/08/2012 09:04:26 end mudpush 10/08/2012 09:04:26 56 0.0 8.37 38.6 10/08/2012 09:04:44 53 0.0 8.38 38.6 10/08/2012 09:05:14 53 0.0 8.37 38.6 10/08/2012 09:05:44 52 0.0 8.37 38.6 10/08/2012 09:06:07 batch-up 12 ppg lead cement 10/08/201.2 09:06:07 52 0.0 8.37 38.6 10/08/2012 09:06:11 Reset Total,Vol=38.57 bbl 10/08/2012 09:06:11 52 0.0 8.37 38.6 10/08/2012 09:06:14 51. 0.0 8.37 38.6 10/08/2012 09:06:44 51 0.0 8.37 38.6 10/08/2012 09:07:14 51. 0.0 8.38 38.6 10/08/2012 09:07:44 50 0.0 8.37 38.6 ' 10/08/2012 09:08:14 51 0.0 8.44 38.6 10/08/2012 09:08:44 51 0.0 8.38 38.6 10/08/2012 09:09:14 49 0.0 8.33 38.6 10/08/2012 09:09:44 52 0.0 8.66 38.6 Page 2 of 7 T-III Well Field Job Start Customer lob Number HV-B-15 15 I HAPPY VALLEY Oct/08/2012 HILCORP HV-B-15 1 Date Time 1 Treating Flow I Density Volume Message 24-hr I Pressure Rate LB/G i BBL cle k PSI B/M _ .„„ '- w:,, � „ .. 4,. •x.„#�x�:'., �k.x�.,i�" �`�'x f: '•,,,7,,,,,,;,. ,. ',�s: u " �$n�'fifi�..� x., a.r,„'�:,,. �. ., ,..� .. asa 10/08/2012 09:10:44 52 0.0 12.23 38.6 10/08/2012 09:11:14 51 0.0 12.17 38.6 10/08/2012 09:11:44 50 0.0 12.10 38.6 10/08/2012 09:12:14 51 0.0 12.09 38.6 10/08/2012 09:12:44 51 0.0 12.08 38.6 10/08/2012 09:13:14 51 0.0 12.08 38.6 10/08/2012 09:13:44 51 0.0 12.07 38.6 10/08/2012 09:14:14 51 0.0 12.06 38.6 10/08/2012 09:14:37 done batching-up at 09:15-12.07 ppg 10/08/2012 09:14:37 51 0.0 12.08 38.6 10/08/2012 09:14:44 50 0.0 12.07 38.6 10/08/2012 09:15:14 51 0.0 12.07 38.6 10/08/2012 09:15:44 52 0.0 12.06 38.6 10/08/2012 09:16:14 52 0.0 12.05 38.6 10/08/2012 09:16:29 drop bottom plug 10/08/2012 09:16:29 51 0.0 12.06 38.6 10/08/2012 09:16:44 52 0.0 12.06 38.6 10/08/2012 09:17:14 51 0.0 12.06 38.6 10/08/2012 09:17:44 51 0.0 12.05 38.6 10/08/2012 09:17:46 start pumping lead 10/08/2012 09:17:46 52 0.0 12.05 38.6 10/08/2012 09:18:14 89 0.0 12.05 38.6 10/08/2012 09:18:44 82 0.9 12.37 38.8 10/08/2012 09:19:14 261 5.5 12.25 40.4 10/08/2012 09:19:44 285 5.5 12.06 43.1 10/08/2012 09:20:14 202 4.8 12.22 45.4 10/08/2012 09:20:44 233 4.7 11.56 47.7 10/08/2012 09:21:14 67 0.0 11.15 48.7 10/08/2012 09:21:44 103 2.8 12.08 49.5 10/08/2012 09:22:14 107 2.8 12.53 50.9 10/08/2012 09:22:44 90 2.8 12.28 52.3 10/08/2012 09:23:14 58 0.0 12.69 53.0 10/08/2012 09:23:44 123 3.4 11.27 54.1 10/08/2012 09:24:14 144 3.5 13.18 55.8 10/08/2012 09:24:44 110 3.5 12.33 57.5 10/08/2012 09:25:14 110 3.5 11.81 59.3 10/08/2012 09:25:44 84 3.5 12.40 61.0 10/08/2012 09:26:14 74 4.4 12.09 62.9 10/08/2012 09:26:44 149 4.3 12.11 65.0 10/08/2012 09:27:14 214 4.9 12.45 67.2 10/08/2012 09:27:44 137 4.1 11.63 69.7 10/08/2012 09:28:14 64 4.2 12.73 71.8 10/08/2012 09:28:44 221 4.2 12.48 73.8 10/08/2012 09:29:14 174 4.3 12.33 76.0 10/08/2012 09:29:44 135 4.2 12.13 78.1 10/08/2012 09:30:14 182 4.3 12.39 80.3 10/08/2012 09:30:44 69 4.2 12.23 82.4 10/08/2012 09:31:14 153 4.3 11.81 84.5 10/08/2012 09:31:44 160 4.3 12.22 86.6 10/08/2012 09:32:14 172 4.3 11.87 88.8 10/08/2012 09:32:44 155 4.2 11.93 90.9 10/08/2012 09:33:14 165 4.5 11.94 93.1 10/08/2012 09:33:44 186 4.4 11.88 95.3 10/08/2012 09:34:14 129 4.5 11.89 97.5 Page 3 of 7 EIV i 1110- Well Field Job Start I Customer Job Number I HV-B-15 15 I HAPPY VALLEY Oct/08/2012 HILCORP HV-B-15 Date Time I Treating Flow Density Volume" I Message 24-hr Pressure Rate LB/G BBL dock PSI B/M 1 4 4 , .'F � 4..z.,,,_11...,,,,.,„1.,::,,,,, � .. _f < 5 , . °u��" z.a � . � .,�: s�f �.��. �a� 4 � � � 10/08/2012 09:35:14 182 4.5 11.94 102.0 10/08/2012 09:35:44 110 3.6 11.94 103.9 10/08/2012 09:36:14 136 4.3 12.08 105.9 10/08/2012 09:36:44 185 4.3 12.05 108.0 10/08/2012 09:37:14 182 4.4 11.98 110.2 10/08/2012 09:37:44 71 1.5 12.06 111.6 10/08/2012 09:38:14 69 0.2 11.83 112.2 10/08/2012 09:38:44 61 0.2 12.13 112.3 10/08/2012 09:39:14 73 1.5 12.57 112.9 10/08/2012 09:39:44 159 4.0 12.40 114.6 10/08/2012 09:40:14 112 2.9 -3.11 116.2 10/08/2012 09:40:44 66 1.4 11.14 117.7 10/08/2012 09:41:14 63 0.2 12.15 118.1 10/08/2012 09:41:44 74 0.5 12.15 118.3 10/08/2012 09:42:14 71 0.0 11.71 118.5 10/08/2012 09:42:44 82 2.2 11.57 118.6 10/08/2012 09:43:14 131 2.8 11.88 120.2 10/08/2012 09:43:31 end lead cement 10/08/2012 09:43:31 66 0.0 0.25 120.6 10/08/2012 09:43:44 58 0.0 0.11 120.6 10/08/2012 09:44:14 53 0.0 0.06 120.6 10/08/2012 09:44:44 51 0.0 0.05 120.6 10/08/2012 09:45:14 49 0.0 0.04 120.6 10/08/2012 09:45:44 49 0.0 0.04. 120.6 10/08/2012 09:46:07 Batch-up 15.4 ppg tail cement 10/08/2012 09:46:07 48 0.0 0.04 120.6 10/08/2012 09:46:14 48 0.0 0.04 120.6 10/08/2012 09:46:44 48 0.0 0.03 120.6 10/08/2012 09:47:00 Reset Total,Vol=82.07 bbl 10/08/2012 09:47:00 48 0.0 0.03 120.6 10/08/2012 09:47:14 48 0.0 0.03 120.6 10/08/2012 09:47:44 49 0.0 0.03 120.6 10/08/2012 09:48:14 49 0.0 0.03 120.6 10/08/2012 09:48:44 51 0.0 8.92 120.6 10/08/2012 09:49:14 52 0.0 9.02 120.6 10/08/2012 09:49:44 52 0.0 12.17 120.6 10/08/2012 09:50:14 52 0.0 15.39 120.6 10/08/2012 09:50:44 52 0.0 15.40 120.6 10/08/2012 09:51:14 74 0.0 15.35 120.6 10/08/2012 09:51:44 76 0.8 14.97 121.2 10/08/2012 09:52:14 217 3.0 15.61 122.4 10/08/2012 09:52:44 226 3.1 15.05 123.9 10/08/2012 09:52:47 start pumping tail 10/08/2012 09:52:47 177 3.1 15.10 124.1 10/08/2012 09:53:14 218 3.4 15.53 125.6 10/08/2012 09:53:44 176 3.8 15.63 127.4 10/08/2012 09:54:14 260 3.5 15.15 129.2 10/08/2012 09:54:44 215 3.5 -3.11 131.0 10/08/2012 09:55:14 125 3.2 -3.11 132.7 10/08/2012 09:55:44 166 4.0 15.43 134.3 10/08/2012 09:56:14 295 4.0 15.37 136.3 10/08/2012 09:56:44 271 3.6 -3.11 138.2 10/08/2012 09:57:14 220 3.6 15.02 140.0 10/08/2012 09:57:44 164 3.6 15.16 141.8 Page 4 of 7 • Well Field Job Start Customer • Job Number HV-B-15 15 HAPPY VALLEY Oct/08/2012 HILCORP HV-B-15 Date Time I Treating I Flow 1 Density Volume 'I Message 24-hr Pressure Rate LB/G BBL clods PSI BIM r x h .... ,;x.. .. *.''',2:,,_��..... '� �r=4.17 u,=.,�e�' ,*x ,.,,'�„.g `'x�' ,�, ;f.:= ''''''''''''...7',9Y.,:',...* .'''''''''-'7";-;'---:'* ,... .wKr fir,......, 10/08/2012 09:58:30 20 bbl into tail-started getting mudpush back to surface 10/08/2012 09:58:30 94 1.1 15.90 142.7 10/08/2012 09:58:44 84 1.1 15.64 143.0 10/08/2012 09:59:14 85 1.2 15.55 143.6 10/08/2012 09:59:44 149 2.6 15.45 144.4 10/08/2012 10:00:14 142 2.6 15.36 145.8 10/08/2012 10:00:36 end pumping tail cement-10:00 am 10/08/2012 10:00:36 55 0.0 0.39 145.9 10/08/2012 10:00:44 55 0.0 0.45 145.9 10/08/2012 10:01:14 56 0.0 0.93 145.9 10/08/2012 10:01:42 Drop Top Plug 10/08/2012 10:01:42 56 0.0 1.02 145.9 10/08/2012 10:01:44 57 0.0 1.01 145.9 10/08/2012 10:01:55 Reset Total,Vol=25.47 bbl 10/08/2012 10:01:55 69 1.7 1.01 146.1 10/08/2012 10:02:14 137 5.4 1.05 147.4 10/08/2012 10:02:29 pump 2 bbl H2O behind 10/08/2012 10:02:29 34 0.0 0.91 148.2 10/08/2012 10:02:44 38 0.0 0.21 148.2 10/08/2012 10:03:07 turn-over to rig for displacement 10/08/2012 10:03:07 41 0.0 0.15 148.2 10/08/2012 10:03:14 40 0.0 0.15 148.2 10/08/2012 10:03:44 39 0.0 0.13 148.2 10/08/2012 10:04:14 40 0.0 0.12 148.2 10/08/2012 10:04:22 Reset Total,Vol=2.05 bbl 10/08/2012 10:04:22 41 0.0 0.12 148.2 10/08/2012 10:04:44 41 0.0 0.12 148.2 10/08/2012 10:05:14 41 0.0 0.12 148.2 10/08/2012 10:05:44 43 0.0 0.12 148.2 10/08/2012 10:06:14 49 0.0 0.12 148.2 10/08/2012 10:06:44 51 0.0 0.12 148.2 10/08/2012 10:07:03 rig start pumping 10/08/2012 10:07:03 56 0.0 0.12 148.2 10/08/2012 10:07:14 95 0.0 0.12 148.2 10/08/2012 10:07:44 106 0.0 0.12 148.2 10/08/2012 10:08:14 133 0.0 0.12 148.2 10/08/2012 10:08:44 143 0.0 0.12 148.2 10/08/2012 10:09:14 160 0.0 0.12 148.2 10/08/2012 10:09:44 176 0.0 0.12 148.2 10/08/2012 10:10:14 207 0.0 0.12 148.2 10/08/2012 10:10:44 223 0.0 0.12 148.2 10/08/2012 10:11:14 257 0.0 0.13 148.2 10/08/2012 10:11:44 281 0.0 0.13 148.2 10/08/2012 10:12:14 311 0.0 0.13 148.2 10/08/2012 10:12:44 313 0.0 0.12 148.2 10/08/2012 10:13:14 279 0.0 0.12 148.2 10/08/2012 10:13:44 -286 0.0 0.13 148.2 10/08/2012 10:14:14 293 0.0 0.12 148.2 10/08/2012 10:14:44 303 0.0 0.12 148.2 10/08/2012 10:15:14 243 0.0 0.12 148.2 10/08/2012 10:15:44 241 0.0 0.13 148.2 10/08/2012 10:16:14 238 0.0 0.13 148.2 10/08/2012 10:16:15 cement to surface at 10:14 10/08/2012 10:16:15 237 0.0 0.12 148.2 Page 5 of 7 . Well' . , Field Job Start I Customer Job Number HV-B-15 15 HAPPY VALLEY 1 Oct/08/2012 HILCORP HV-B-15 Date 1 Time Treating 1 Flow 1 Density Volume Message '.. 24-hr Pressure Rate LB/G BBL clock PSI %..v, B/M j . ',.. ,P x ,s. x _ , ,,. " ,,,,:4-4:41,,,t, - . t Y' H * e: a * s 'x u th`. t �° , 4.„, ls #�' itQ . r . x :; : _. 5x. ."W 10/08/2012 10:17:14 232 0.0 0.13 148.2 10/08/2012 10:17:44 231 0.0 0.13 148.2 10/08/2012 10:18:14 228 0.0 0.13 148.2 10/08/2012 10:18:44 226 0.0 0.13 148.2 10/08/2012 10:19:14 224 0.0 0.13 148.2 10/08/2012 10:19:44 222 0.0 0.13 148.2 10/08/2012 10:20:14 221 0.0 0.13 148.2 10/08/2012 10:20:44 219 0.0 0.13 148.2 10/08/2012 10:21:14 219 0.0 0.13 148.2 10/08/2012 10:21:44 218 0.0 0.13 148.2 10/08/2012 10:22:14 217 0.0 0.13 148.2 10/08/2012 10:22:44 217 0.0 0.13 148.2 10/08/2012 10:23:14 215 0.0 0.13 148.2 10/08/2012 10:23:44 216 0.0 0.13 148.2 10/08/2012 10:24:14 215 0.0 0.13 148.2 10/08/2012 10:24:44 214 0.0 0.13 148.2 10/08/2012 10:25:14 213 0.0 0.13 148.2 10/08/2012 10:25:44 213 0.0 0.13 148.2 10/08/2012 10:26:14 213 0.0 0.13 148.2 10/08/2012 10:26:44 211 0.0 0.13 148.2 10/08/2012 10:27:14 212 0.0 0.13 148.2 10/08/2012 10:27:44 210 0.0 0.13 148.2 10/08/2012 10:28:14 210 0.0 0.13 148.2 10/08/2012 10:28:44 210 0.0 0.13 148.2 10/08/2012 10:29:14 209 0.0 0.13 148.2 10/08/2012 10:29:44 209 0.0 0.13 148.2 10/08/2012 10:30:14 209 0.0 0.13 148.2 10/08/2012 10:30:44 208 0.0 0.13 148.2 10/08/2012 10:31:14 207 0.0 0.13 148.2 10/08/2012 10:31:44 207 0.0 0.13 148.2 10/08/2012 10:32:14 207 0.0 0.13 148.2 10/08/2012 10:32:44 207 0.0 0.13 148.2 10/08/2012 10:33:14 206 0.0 0.13 148.2 10/08/2012 10:33:44 206 0.0 0.13 148.2 10/08/2012 10:34:14 206 0.0 0.13 148.2 10/08/2012 10:34:18 plug did not bump 10/08/2012 10:34:18 205 0.0 0.13 148.2 10/08/2012 10:34:44 205 0.0 0.13 148.2 10/08/2012 10:35:14 205 0.0 0.13 148.2 10/08/2012 10:35:44 205 0.0 0.13 148.2 10/08/2012 10:36:14 192 0.0 0.13 148.2 10/08/2012 10:36:44 191 0.0 0.17 148.2 10/08/2012 10:37:14 43 0.0 0.13 148.2 10/08/2012 10:37:44 44 0.0 0.13 148.2 10/08/2012 10:38:14 45 0.0 0.13 148.2 10/08/2012 10:38:44 45 0.0 0.13 148.2 10/08/2012 10:39:14 46 0.0 0.13 148.2 10/08/2012 10:39:31 checked floats-holding-no returns 10/08/2012 10:39:31 46 0.0 0.13 148.2 10/08/2012 10:39:44 47 0.0 0.13 148.2 10/08/2012 10:40:14 45 0.0 0.13 148.2 10/08/2012 10:40:44 43 0.0 0.13 148.2 10/08/2012 10:41:14 43 0.0 0.13 148.2 Page 6 of 7 0 —7 41, r Well• Field - - Job Start Customer Job Number HV-B-15 15 HAPPY VALLEY Oct/08/2012 HILCORP HV-B-15 I l Post Job Summary Average Pump Rates, Volume of Fluid Injected,bbl Slurry N2 Mud Maximum Rate Total Slurry Mud Spacer N2 110.0 35.0 Treating Pressure Summary, Breakdown Fluid Maximum Final Average Bump Plug to Breakdown Type Volume Density 0 Avg.N2 Percent Designed Slurry Volume Displacement Mix Water Temp Cement Circulated to Surface? El Volume 7 110.0 bbl 46.5 bbl 45 degF Washed Thru Perfs ❑ To Customer or Authorized Representative Schlumberger Supervisor Circulation Lost ❑ lob Completed El RODNEY MCCOY DONNY BERGONZINI - - Page 7 of 7 • CemCAT v1.3 Schlumberger Cementing Job Report Well HAPPY VALLEY B-15 Client Hilcorp Field HV SIR No. !> Engineer Job Type LINER Country United States Job Date 10-17-2012 Time Pressure Rate Density Messages 10/16/2012 31:00::9 21:08:29 21:23:00 21:38:00 21:53:00 Pressure Test Lines 22:08:00 cmt batched up 10:21 pm 22:23:00 Reset Total,Vol=10.92 bbl pump mud push Reset Total,Vol=13.07 bbl start cmt Reset Total,Vol=0.00 bbl es 22:38:00 Tti I r 22:53:00 '... cmt away Res out plug Reset Total,Vol=53.60 bbl ria displace 400 strokes pumped / 23:08:00 --� bumped plug at 790 strokes Stopped Acquisition 23:23:00 23:38:14 hh:mm:ss 0.00 1000 2000 3000 4000 5000 0.00 2.0 4.0 6.0 6.0 10.0 5.0 10.0 15.0 20.0 25,0 ,oneam:23:38:0 PSI B/M LB/G 11/28/2012 12:39:37 er Schlumber9 Cementing Service port _ Customer Job Number Hilcorp Well Location(legal) Schlumberger Location Job Start HV-D-15 HV-B-15 HAPPY VALLEY ANC Oct/16/2012 Field Formation Name/Type Deviation Bit Size Well MD Well TVD HAPPY VALLEY County KENAI State/Province AK BHP BHST BHCT Pore Press.Gradient Well Master 15 API/UWI Rig Name Drilled For Service Via Casing/Liner AURORA GAS LAND Depth, Size, Weight, Grade Thread Offshore Zone Well Class Well Type NEW GAS Drilling Fluid Type Max.Density Plastic Viscosity Tubing/Drill Pipe Depth, Size, Weight, Grade Thread Service Line Job Type Cementing LINER Max.Allowed Tub. Max.Allowed Ann.Press WH Connection Perforations/Open Hole Top, Bottom, No.of Shots Total Interval Service Instructions 5.5 LINER Diameter Treat Down Displacement Packer Type Packer Depth Tubing Vol. Casing Vol. Annular Vol. Openhole Vol. Casing/Tubing Secured D 1 Hole Vol.Circulated prior to Cement 0 Casing Tools Squeeze Job Lift Pressure Shoe Type Sq Type Pipe Rotated Ei Pipe Reciprocated 0 Shoe Depth Tool Type No.Centralizers Top Plugs Bottom Plugs Stage Tool Type Tool Depth Cement Head Type Stage Tool Depth Tail Pipe Size Job Scheduled For Arrived on Location Location Collar Type Tail Pipe Depth Oct/16/2012 Oct/16/2012 Oct/16/2012 Collar Depth Sqz.Total Vol. Date Time Treating Flow Density Volume Message 24-hr Pressure Rate LB/G BBL clock PSI B/M 10/16/2012 12:26:10 Started Acquisition 10/16/2012 17:35:07 Stopped Acquisition 10/16/2012 20:39:24 Started Acquisition 10/16/2012 21:08:29 2 0.0 8.37 0.0 10/16/2012 21:08:40 3 0.0 8.37 0.0 10/16/2012 21:09:10 3 0.0 8.37 0.0 10/16/2012 21:09:40 3 0.0 8.37 0.0 10/16/2012 21:10:10 2 0.0 8.37 0.0 10/16/2012 21:10:40 3 0.0 8.37 0.0 10/16/2012 21:11:10 3 0.0 8.38 0.0 10/16/2012 21:11:40 3 0.0 8.37 0.0 10/16/2012 21:12:10 2 0.0 8.37 0.0 10/16/2012 21:12:40 3 0.0 8.37 0.0 10/16/2012 21:13:10 1 0.0 8.37 0.0 10/16/2012 21:13:40 2 0.0 8.37 0.0 10/16/2012 21:14:10 3 0.0 8.37 0.0 10/16/2012 21:14:40 2 0.0 8.37 0.0 10/16/2012 21:15:10 2 0.0 8.37 0.0 10/16/2012 21:15:40 4 0.0 8.37 0.0 10/16/2012 21:16:10 3 0.0 8.37 0.0 10/16/2012 21:16:40 2 0.0 8.37 0.0 Page 1 of 7 Well , Field I Job Start Customei lob Number HV-D-15 HV-B-15 HAPPY VALLEY Oct/16/2012 Hilcorp Date ' Time Treating Flow 1 Density Volume 1 Message 24-hr Pressure Rate LB/G SRL clock ''`.17.11., SI, B/M �t Or. .; 3'1 f t "+" ;" ." 7 ,4 ..,it ri ' >ii. e ,, , "`y t ,: 10/16/2012 21:17:40 3 0.0 8.37 0.0 10/16/2012 21:18:10 3 0.0 8.37 0.0 10/16/2012 21:18:40 2 0.0 8.37 0.0 10/16/2012 21:19:10 2 0.0 8.37 0.0 10/16/2012 21:19:40 2 0.0 8.37 0.0 10/16/2012 21:20:10 2 0.0 8.37 0.0 10/16/2012 21:20:40 4 0.0 8.37 0.0 10/16/2012 21:21:10 3 0.0 8.37 0.0 10/16/2012 21:21:40 2 0.0 8.37 0.0 10/16/2012 21:22:10 2 0.0 8.37 0.0 10/16/2012 21:22:40 2 0.0 8.37 0.0 10/16/2012 21:23:10 3 0.0 8.37 0.0 10/16/2012 21:23:40 2 0.0 8.37 0.0 10/16/2012 21:24:10 3 0.0 8.37 0.0 10/16/2012 21:24:40 3 0.0 8.37 0.0 10/16/2012 21:25:10 3 0.0 8.37 0.0 10/16/2012 21:25:40 3 0.0 8.37 0.0 10/16/2012 21:26:10 3 0.0 8.37 0.0 10/16/2012 21:26:40 3 0.0 8.37 0.0 10/16/2012 21:27:10 2 0.0 8.37 0.0 10/16/2012 21:27:40 3 0.0 8.37 0.0 10/16/2012 21:28:10 3 0.0 8.37 0.0 10/16/2012 21:28:40 3 0.0 8.37 0.0 10/16/2012 21:29:10 2 0.0 8.37 0.0 10/16/2012 21:29:40 3 0.0 8.37 0.0 10/16/2012 21:30:10 2 0.0 8.37 0.0 10/16/2012 21:30:40 3 0.0 8.37 0.0 10/16/2012 21:31:10 2 0.0 8.37 0.0 10/16/2012 21:31:40 3 0.0 8.37 0.0 10/16/2012 21:32:10 3 0.0 8.37 0.0 10/16/2012 21:32:40 2 0.0 8.37 0.0 10/16/2012 21:33:10 3 0.0 8.37 0.0 10/16/2012 21:33:40 3 0.0 8.37 0.0 10/16/2012 21:34:10 4 0.0 8.37 0.0 10/16/2012 21:34:40 2 0.0 8.37 0.0 10/16/2012 21:35:10 2 0.0 8.37 0.0 10/16/2012 21:35:40 2 0.0 8.37 0.0 10/16/2012 21:36:10 3 0.0 8.37 0.0 10/16/2012 21:36:40 4 0.0 8.37 0.0 10/16/2012 21:37:10 3 0.0 8.37 0.0 10/16/2012 21:37:40 4 0.0 8.37 0.0 10/16/2012 21:38:10 3 0.0 8.37 0.0 10/16/2012 21:38:40 2 0.0 8.37 0.0 10/16/2012 21:39:10 3 0.0 8.37 0.0 10/16/2012 21:39:40 3 0.0 8.37 0.0 10/16/2012 21:40:10 3 0.0 8.37 0.0 10/16/2012 21:40:40 3 0.0 8.37 0.0 10/16/2012 21:41:10 3 0.0 8.37 0.0 10/16/2012 21:41:40 3 0.0 8.37 0.0 10/16/2012 21:42:10 3 0.0 8.37 0.0 10/16/2012 21:42:40 2 0.0 8.37 0.0 10/16/2012 21:43:10 3 0.0 8.37 0.0 10/16/2012 21:43:40 3 0.0 8.37 0.0 10/16/2012 21:44:10 2 0.0 8.37 0.0 Page 2 of 7 Well ' Field ]ob Start customer • 7 lob Number HV-D-15 HV-B-15 HAPPY VALLEY Oct/16/2012 Hilcorp Date I Time I Treating flow Density I Volume Message 24-hr Pressure Rate LB/G BBL cloak PS1 B/M f , '�d n'"'"a+ J r;a' `..i .. n t 2 a 041; :' ry 7, - , rax S s. 1 mu M ,."t, ,. ,,. � :r .'�..,.., ,,. _'. ..� z.�a;' a'� ,., ;,. tt �.n*�..x. . � .. .w.. .��'.-.� .n *},d,14:,', .,.w.r o'. 10/16/2012 21:45:10 3 0.0 8.37 0.0 10/16/2012 21:45:40 3 0.0 8.37 0.0 10/16/2012 21:46:10 3 0.0 8.37 0.0 10/16/2012 21:46:40 3 0.0 8.37 0.0 10/16/2012 21:47:10 3 0.0 8.37 0.0 10/16/2012 21:47:40 3 0.0 8.37 0.0 10/16/2012 21:48:10 2 0.0 8.37 0.0 10/16/2012 21:48:40 3 0.0 8.37 0.0 10/16/2012 21:49:10 3 0.0 8.37 0.0 10/16/2012 21:49:40 3 0.0 8.37 0.0 10/16/2012 21:50:10 3 0.0 8.37 0.0 10/16/2012 21:50:40 2 0.0 8.37 0.0 10/16/2012 21:51:10 3 0.0 8.37 0.0 10/16/2012 21:51:40 2 0.0 8.37 0.0 10/16/2012 21:52:10 4 0.0 8.37 0.0 10/16/2012 21:52:40 3 0.0 8.37 0.0 10/16/2012 21:53:10 3 0.0 8.37 0.0 10/16/2012 21:53:40 2 0.0 8.37 0.0 10/16/2012 21:54:10 2 0.0 8.37 0.0 10/16/2012 21:54:40 3 0.0 8.37 0.0 10/16/2012 21:55:10 2 0.0 8.37 0.0 10/16/2012 21:55:40 3 0.0 8.37 0.0 10/16/2012 21:56:10 3 0.0 8.37 0.0 10/16/2012 21:56:40 3 0.0 8.37 0.0 10/16/2012 21:57:10 3 0.0 8.37 0.0 10/16/2012 21:57:40 3 0.0 8.37 0.0 10/16/2012 21:58:10 2 0.0 8.37 0.0 10/16/2012 21:58:40 3 0.0 8.37 0.0 10/16/2012 21:59:10 3 0.0 8.37 0.0 10/16/2012 21:59:40 3 0.0 8.37 0.0 10/16/2012 22:00:10 3 0.0 8.38 0.0 10/16/2012 22:00:40 2 0.0 8.37 0.0 10/16/2012 22:01:10 2 0.0 8.38 0.0 10/16/2012 22:01:40 2 0.0 8.37 0.0 10/16/2012 22:02:10 3 0.0 8.37 0.0 10/16/2012 22:02:40 2 0.0 8.37 0.0 10/16/2012 22:03:10 4 0.0 8.37 0.0 10/16/2012 22:03:40 3 0.0 8.38 0.0 10/16/2012 22:04:10 5 0.0 8.37 0.0 10/16/2012 22:04:40 6 0.0 8.37 0.0 10/16/2012 22:05:10 250 1.1 8.37 0.1 10/16/2012 22:05:40 398 3.5 8.37 1.3 10/16/2012 22:06:10 113 0.0 8.37 2.1 10/16/2012 22:06:40 1558 0.0 8.38 2.1 10/16/2012 22:06:59 Pressure Test Lines 10/16/2012 22:06:59 1498 0.0 8.38 2.1 10/16/2012 22:07:10 1475 0.0 8.37 2.1 10/16/2012 22:07:40 1431 0.0 8.37 2.1 10/16/2012 22:08:10 4894 0.0 8.37 2.1 10/16/2012 22:08:40 4848 0.0 8.37 2.1 10/16/2012 22:09:10 4824 0.0 8.37 2.1 10/16/2012 22:09:40 37 0.0 8.37 2.1 10/16/2012 22:10:10 26 0.0 8.36 2.1. 10/16/2012 22:10:40 26 0.0 8.36 2.1 Page 3 of 7 Well ' Field Job Start Customer Job Number HV-D-15 HV-B-15 HAPPY VALLEY Oct/16/2012 Hilcorp Date I Time I Treating I Row l Density .Volume Message 1 24-hr Pressure Rate LB/G BBL clock P5; B N 10/16/2012 22:11:40 32 0.0 8.37 2.1 10/16/2012 22:12:10 34 0.0 8.37 2.1 10/16/2012 22:12:40 31 0.0 8.36 2.1 10/16/2012 22:13:10 31 5.4 8.36 4.1 10/16/2012 22:13:40 31 5.4 8.37 6.8 10/16/2012 22:14:10 29 5.4 8.37 9.5 10/16/2012 22:14:40 29 0.0 8.37 10.9 10/16/2012 22:15:10 28 0.0 8.37 10.9 10/16/2012 22:15:40 28 0.0 8.37 10.9 10/16/2012 22:16:10 27 0.0 8.37 10.9 10/16/2012 22:16:40 27 0.0 8.37 10.9 10/16/2012 22:17:10 26 0.0 8.37 10.9 10/16/2012 22:17:40 26 0.0 8.37 10.9 10/16/2012 22:18:10 27 0.0 8.24 10.9 10/16/2012 22:18:40 26 0.0 8.09 10.9 10/16/2012 22:19:10 27 0.0 8.16 10.9 10/16/2012 22:19:40 24 0.0 8.29 10.9 10/16/2012 22:20:10 24 0.0 12.04 10.9 10/16/2012 22:20:40 24 0.0 12.10 10.9 10/16/2012 22:21:10 22 0.0 12.09 10.9 10/16/2012 22:21:40 22 0.0 12.09 10.9 10/16/2012 22:21:53 cmt batched up 10:21 pm 10/16/2012 22:21:53 21 0.0 12.10 10.9 10/16/2012 22:22:03 Reset Total,Vol=10.92 bbl 10/16/2012 22:22:03 21 0.0 12.09 10.9 10/16/2012 22:22:10 21 0.0 12.10 0.0 10/16/2012 22:22:40 20 0.0 12.10 0.0 10/16/2012 22:23:10 21 0.0 12.10 0.0 10/16/2012 22:23:17 pump mud push 10/16/2012 22:23:17 20 0.0 12.10 0.0 10/16/2012 22:23:40 20 0.0 12.10 0.0 10/16/2012 22:24:10 20 0.0 12.09 0.0 10/16/2012 22:24:40 19 0.0 12.10 0.0 10/16/2012 22:25:10 19 0.0 12.09 0.0 10/16/2012 22:25:40 39 0.0 12.10 0.0 10/16/2012 22:26:10 33 0.0 12.10 0.0 10/16/2012 22:26:40 303 3.3 11.96 1.1 10/16/2012 22:27:10 366 3.0 11.94 2.6 10/16/2012 22:27:40 315 3.1 12.01 4.2 10/16/2012 22:28:10 210 3.1 11.94 5.8 10/16/2012 22:28:40 296 3.1 11.96 7.3 10/16/2012 22:29:10 330 3.1 11.97 8.9 10/16/2012 22:29:40 283 3.0 11.96 10.4 10/16/2012 22:30:10 309 2.8 11.86 11.8 10/16/2012 22:30:40 20 0.0 11.99 13.1 10/16/2012 22:30:58 Reset Total,Vol=13.07 bbl 10/16/2012 22:30:58 18 0.0 12.00 13.1 10/16/2012 22:31:10 17 0.0 12.01 13.1 10/16/2012 22:31:17 start cmt 10/16/2012 22:31:17 16 0.0 12.01 13.1 10/16/2012 22:31:34 Reset Total,Vol=0.00 bbl 10/16/2012 22:31:34 15 0.0 12.02 13.1 10/16/2012 22:31:40 14 0.0 12.02 0.0 10/16/2012 22:32:10 12 0.0 12.11 0.0 Page 4 of 7 Well ' Field Job Start Customer I Job Number HV-D-15 HV-B-15 HAPPY VALLEY Oct/16/2012 Hilcorp Date Time: Treating I Flow i Density 1 Volume IMessage 24-br Pressure Rate LB/G BBL clock PSI BIN NY w�: My ' , w 10/16/2012 22:33:10 312 3.2 12.24 1.5 10/16/2012 22:33:40 373 3.7 12.16 3.3 10/16/2012 22:34:10 536 11.90 5.3 10/16/2012 22:34:40 465 11.90 7.6 10/16/2012 22:35:10 431 4.7 11.97 9.9 10/16/2012 22:35:40 604 I. 11.93 12.2 10/16/2012 22:36:10 99 11.74 13.9 10/16/2012 22:36:40 68 12.11 15.2 10/16/2012 22:37:10 85 3.1 12.17 16.4 10/16/2012 22:37:40 276 3.6 11.73 18.1 10/16/2012 22:38:10 39 1.6 -3.12 19.8 10/16/2012 22:38:40 10 0.0 11.38 20.1 10/16/2012 22:39:10 162 2.6 12.02 20.6 10/16/2012 22:39:40 183 2.8 11.61 22.0 10/16/2012 22:40:10 133 2.8 11.99 23.5 10/16/2012 22:40:40 334 3.9 11.94 25.1 10/16/2012 22:41:10 392 11111 11.87 27.1 10/16/2012 22:41:40 289 11.88 29.0 10/16/2012 22:42:10 264 11.82 31.0 10/16/2012 22:42:40 450 3.9 11.86 32.9 10/16/2012 22:43:10 77 1.4 11.60 34.2 10/16/2012 22:43:40 309 3.6 11.69 35.6 10/16/2012 22:44:10 329 3.6 11.80 37.4 10/16/2012 22:44:40 351 3.7 11.91 39.2 10/16/2012 22:45:10 279 3.7 11.76 41.1 10/16/2012 22:45:40 241 3.6 11.77 42.9 10/16/2012 22:46:10 48 0.0 11.23 44.0 10/16/2012 22:46:40 69 2.8 11.82 44.3 10/16/2012 22:47:10 40 1.3 11.41 45.6 10/16/2012 22:47:40 65 2.2 11.77 46.6 10/16/2012 22:48:10 63 2.2 11.84 47.7 10/16/2012 22:48:40 85 2.2 11.73 48.7 10/16/2012 22:49:10 81 2.1 11.91 49.8 10/16/2012 22:49:40 50 1.3 11.77 50.6 10/16/2012 22:50:10 38 1.3 11.75 51.3 10/16/2012 22:50:40 47 1.3 11.95 52.0 10/16/2012 22:51:10 40 0.0 11.79 52.3 10/16/2012 22:51:40 44 1.4 11.76 52.7 10/16/2012 22:52:10 50 2.2 11.44 53.5 10/16/2012 22:52:40 9 0.0 12.06 53.6 10/16/2012 22:53:03 cmt away 10/16/2012 22:53:03 9 0.0 12.07 53.6 10/16/2012 22:53:10 9 0.0 12.07 53.6 10/16/2012 22:53:16 kick out plug 10/16/2012 22:53:16 10 0.0 12.07 53.6 10/16/2012 22:53:19 Reset Total,Vol=53.60 bbl 10/16/2012 22:53:19 9 0.0 12.07 53.6 10/16/2012 22:53:40 10 0.0 12.08 0.0 10/16/2012 22:54:10 10 0.0 12.08 0.0 10/16/2012 22:54:40 11 0.0 12.08 0.0 10/16/2012 22:55:10 11 0.0 12.09 0.0 10/16/2012 22:55:40 13 0.0 12.10 0.0 10/16/2012 22:56:10 13 0.0 11.50 0.0 10/16/2012 22:56:40 14 0.0 11.13 0.0 Page 5 of 7 le- Well' . Field Job Start Customer j Job Number HV-D-15 HV-B-15 HAPPY VALLEY Oct/16/2012 1 Hilcorp t Date Time 1 Treating '.. flow Density Volume I Message 24-hr Pressure Rate LB/G BBL clock PSI BIM 10/16/2012 22:57:40 180 5.4 10.50 0.8 10/16/2012 22:58:10 63 0.0 10.60 2.1 10/16/2012 22:58:40 53 0.0 10.62 2.1 10/16/2012 22:59:10 332 0.0 10.57 2.1 10/16/2012 22:59:40 647 0.0 10.56 2.1 10/16/2012 23:00:10 1400 0.0 10.65 2.1 10/16/2012 23:00:40 549 0.0 10.69 2.1 10/16/2012 23:01:10 696 0.0 10.78 2.1 10/16/2012 23:01:40 748 0.0 10.49 2.1 10/16/2012 23:02:10 810 0.0 10.64 2.1 10/16/2012 23:02:40 847 0.0 10.64 2.1 10/16/2012 23:02:47 rig displace 10/16/2012 23:02:47 875 0.0 10.65 2.1 10/16/2012 23:03:10 877 0.0 10.64 2.1 10/16/2012 23:03:40 955 0.0 10.65 2.1 10/16/2012 23:04:10 993 0.0 10.66 2.1 10/16/2012 23:04:21 400 strokes pumped 10/16/2012 23:04:21 1009 0.0 10.68 2.1 10/16/2012 23:04:40 1042 0.0 10.66 2.1 10/16/2012 23:05:10 1090 0.0 10.67 2.1 10/16/2012 23:05:40 1139 0.0 10.67 2.1 10/16/2012 23:06:10 1197 0.0 10.67 2.1 10/16/2012 23:06:40 1246 0.0 10.51 2.1 10/16/2012 23:07:10 1257 0.0 9.73 2.1 10/16/2012 23:07:40 1301 0.0 10.06 2.1 10/16/2012 23:08:10 845 0.0 0.17 2.1 10/16/2012 23:08:40 886 0.0 0.08 2.1 10/16/2012 23:09:10 892 0.0 0.08 2.1 10/16/2012 23:09:40 806 0.0 0.07 2.1 10/16/2012 23:10:10 826 0.0 0.07 2.1 10/16/2012 23:10:40 2323 0.0 8.49 2.1 10/16/2012 23:11:10 2311 0.0 6.61 2.1 10/16/2012 23:11:40 2308 0.0 7.63 2.1 10/16/2012 23:11:42 bumped plug at 790 strokes 10/16/2012 23:11:42 2306 0.0 7.89 2.1 10/16/2012 23:12:10 2312 0.0 7.55 2.1 10/16/2012 23:12:40 2312 0.0 7.36 2.1 10/16/2012 23:13:10 2312 0.0 7.55 2.1 10/16/2012 23:13:40 2311 0.0 7.43 2.1 10/16/2012 23:14:10 2310 0.0 7.35 2.1 10/16/2012 23:14:40 2531 0.3 7.33 2.1 10/16/2012 23:15:10 2886 0.0 -3.12 2.2 10/16/2012 23:15:40 2889 0.0 8.63 2.2 10/16/2012 23:16:10 2894 0.0 8.59 2.2 10/16/2012 23:16:40 2889 0.0 8.67 2.2 10/16/2012 23:17:10 2887 0.0 8.68 2.2 10/16/2012 23:17:40 2885 0.0 8.67 2.2 10/16/2012 23:18:10 2883 0.0 8.48 2.2 10/16/2012 23:18:40 2881 0.0 8.34 2.2 10/16/2012 23:19:10 2879 0.0 8.44 2.2 10/16/2012 23:19:40 2878 0.0 8.50 2.2 10/16/2012 23:20:10 2877 0.0 8.47 2.2 10/16/2012 23:20:40 2977 0.2 8.57 2.2 10/16/2012 23:21:10 3576 0.1 8.57 2.4 Page 6 of 7 _ WeIP r Field Job Start Customer Job Number HV-D-15 HV-B-15 HAPPY VALLEY Oct/16/2012 Hilcorp Date Time Treating I Flow Density Volume I Message �� 24-hr I Pressure Rate LB/G BBL dock PSI 5/N .. r 7c•..,. rts F, r r .,>,�' w.' e.',-"..4+,e. -.� *'^^•xe•#r,, ' ,��..: " __' `_ �x.. .� :..�,:.. > „„...ra.,.;� .s, 3. 10/16/2012 23:22:10 3998 0.0 8.49 2.5 10/16/2012 23:22:40 3997 0.0 -3.12 2.5 10/16/2012 23:23:10 3727 0.0 0.07 2.5 10/16/2012 23:23:40 1871 0.0 0.05 2.5 10/16/2012 23:24:10 38 0.0 0.05 2.5 10/16/2012 23:24:40 26 0.0 0.04 2.5 10/16/2012 23:25:10 23 0.0 8.66 2.5 10/16/2012 23:25:40 21 0.0 8.65 2.5 10/16/2012 23:26:10 19 0.0 8.70 2.5 10/16/2012 23:26:40 20 0.0 8.70 2.5 10/16/2012 23:27:10 20 0.0 8.67 2.5 10/16/2012 23:27:40 18 0.0 8.65 2.5 10/16/2012 23:28:10 19 0.0 8.59 2.5 10/16/2012 23:28:40 19 0.0 8.56 2.5 10/16/2012 23:29:10 18 0.0 8.54 2.5 10/16/2012 23:29:40 19 0.0 8.49 2.5 10/16/2012 23:30:10 18 0.0 8.42 2.5 10/16/2012 23:30:40 19 0.0 8.43 2.5 10/16/2012 23:31:10 19 0.0 8.50 2.5 10/16/2012 23:31:40 18 0.0 0.12 2.5 10/16/2012 23:32:10 16 0.0 0.06 2.5 10/16/2012 23:32:40 16 0.0 0.05 2.5 10/16/2012 23:33:10 16 0.0 0.04 2.5 10/16/2012 23:33:40 15 0.0 0.04 2.5 10/16/2012 23:34:10 13 0.0 0.04 2.5 10/16/2012 23:34:40 22 0.0 0.04 2.5 10/16/2012 23:35:10 16 0.0 0.04 2.5 10/16/2012 23:35:40 19 0.0 0.04 2.5 10/16/2012 23:36:10 12 0.0 0.04 2.5 10/16/2012 23:36:40 11 0.0 0.04 2.5 10/16/2012 23:37:10 13 0.0 0.04 2.5 10/16/2012 23:37:40 20 0.0 -3.12 3.1 10/16/2012 23:38:10 13 0.0 0.04 3.1 Post Job Summary Volume of Fluid Injected, Average Pump Rates, Slurry N2 Mud Maximum Rate Total Slurry Mud Spacer N2 Breakdown Fluid Treating Pressure Summary, Maximum Final Average Bump Plug to Breakdown Type Volume Density Avg.N2 Percent Designed Slurry Volume Displacement Mix Water Temp Cement Circulated to Surface? Volume 80 degF Washed Thru Perfs To 11 Customer or Authorized Representative Schlumberger Supervisor Circulation Lost Job Completed McCOY DONNY BERGONZINI _ _ Page 7 of 7 • • \�����j�s� THE STATE Alaska Oil and Gas °ALASKA Conservation Commission - GOVERNOR SEAN PARNELL 333 West Seventh Avenue Anchorage, Alaska 99501-3572 ALASMain: 907.279.1433 Fax: 907.276.7542 November 29, 2012 CERTIFIED MAIL— RETURN RECEIPT REQUESTED 7009 2250 0004 3911 3576 Mr. Paul Mazzolini Drilling Manager Hilcorp Alaska LLC P. O. Box 244027 Anchorage, AK 99524-4027 Re: Notice of Violation—Missing Well Control Equipment Aurora Well Services Rig#1 Happy Valley B-15 (PTD 212132) and B-16 (PTD 2121330) Dear Mr. Mazzolini: On November 18, 2012 an Alaska Oil and Gas Conservation Commission (AOGCC) Inspector witnessed the initial performance test of secondary well control equipment on the Aurora Well Services #1 (Aurora 1) rig being operated by Hilcorp Alaska LLC (Hilcorp). The rig was preparing to drill out of surface casing on Happy Valley B-16. Inspection of the equipment in conjunction with the performance test revealed that required auxiliary well control equipment was not installed as required by regulation. A copy of the AOGCC Inspection report is attached. The kelly valve configuration observed by the AOGCC Inspector is a violation of 20 AAC 25.035(e)(9)(A), which requires secondary well control equipment for rotary drilling rig operations to include "a kelly cock valve installed below the swivel and, at the bottom of the kelly, a full-opening lower kelly valve of a design that allows it to be run through the BOP stack... . " (emphasis added) Pipe rotation on the Aurora 1 rig is generated by a power swivel and not transmitted by a rotary table, which provides for a slightly different configuration of the kelly valves, but not elimination of those two safety devices. A similar situation was observed at the Aurora 1 rig during an AOGCC-witnessed blow out prevention equipment test on October 10, 2012 (copy of Inspector's report is attached). During that inspection, the bottom kelly valve was missing. The AOGCC Inspector directed Hilcorp's representative overseeing Aurora 1 field activities to install the required lower valve, and test (and chart the test) the valve when installed. An email message was sent from the AOGCC Inspector to Mr. Rodney McCoy on October 10, 2012 shortly after the Inspector departed the location listing the items that were out of compliance or deemed incomplete. Hilcorp was instructed to address the items on the Inspector's list before drilling out. The AOGCC Inspector • • Mr.Paul Mazzolini November 29,2012 Page 2 of 2 returned to Happy Valley B-16 to witness the formation integrity test after drilling 20 feet of new formation and observed the lower kelly valve to be in place. Drilling operations by Aurora 1 continued at Happy Valley B-16 with blowout prevention equipment being tested again on November 10, 2012; that test was not witnessed by AOGCC. The upper and lower kelly valves were reported to have passed the performance tests. Within seven days of receipt of this letter (next business day if the due date falls on a weekend), you are requested to provide the AOGCC with the following: - Daily drilling reports for Happy Valley wells B-15 and B-16; - Evidence supporting that the lower kelly valve was installed in response to noted deficiencies during AOGCC's inspection October 10, 2012; - Written explanation of when and why the lower kelly valve was removed from the power swivel system prior to the November 18, 2012 blowout prevention equipment test; - Confirmation that the lower kelly valve has been reinstalled, tested and is functioning properly as required by regulation. The AOGCC is continuing its review of this violation and reserves the right to take further enforcement action based on its findings. Sincerely, /Pt)et. Cathy P. oerster Chair, ommissioner Attachments (2) cc: AOGCC Inspectors RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a),within 20 days after written notice of the entry of this order or 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 of the matter determined by it. If the notice was mailed,then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration,upon denial,this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction,in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration,this order or decision does not become final. Rather,the order or decision on reconsideration will be the FINAL order or decision of the AOGCC,and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails,OR 30 days if the AOGCC otherwise distributes,the order or decision on reconsideration. As provided in AS 31.05.080(b),"[t]he questions reviewed on appeal are limited to the questions presented to the AOGCC by the application for reconsideration." In computing a period of time above,the date of the event or default after which the designated period begins to run is not included in the period;the last day of the period is included,unless it falls on a weekend or state holiday,in which event the period runs until 5:00 p.m.on the next day that does not fall on a weekend or state holiday. • STATE OF ALASKA Reviewed By: OIL AND GAS CONSERVATION COMMISSION P.I.Supry BOPE Test Report Comm Contractor/Rig No.: Aurora 1 PTD#: 2121320 DATE: 10/10/2012 Inspector Lou Grimaldi Insp Source Operator: HILCORP ALASKA,LLC Operator Rep: Mccoy Rig Rep: Brenin/Peterson Inspector Type Operation: DRILL Rams: Annular: Valves: Inspection No: bopLG121010101150 Type Test: INIT Test Pressure: 250/3000 250/1500 250/3000 Related Insp No: TEST DATA MISC.INSPECTIONS: MUD SYSTEM: ACCUMULATOR SYSTEM: P/F Visual Alarm Time/Pressure P/F Location Gen.: F Trip Tank NT NT System Pressure 2975 P _ Housekeeping: F Pit Level Indicators NT NT Pressure After Closure 1700 P PTD On Location P Flow Indicator NT NT 200 PSI Attained 45 P Standing Order Posted P Meth Gas Detector P P Full Pressure Attained 258 F Well Sign P H2S Gas Detector P P i Blind Switch Covers: P Drl. Rig F MS Misc NA NA Nitgn.Bottles(avg): 4 x 1800 P Hazard Sec. P ACC Misc 0 NA Misc NA FLOOR SAFTY VALVES: BOP STACK: I CHOKE MANIFOLD: Quantity P/F Quantity Size P/F Quantity P/F Upper Kelly 1 NT Stripper 0 none NA No. Valves 13 P Lower Kelly 1 NT Annular Preventer 1 11" P Manual Chokes 1 P Ball Type 1 P #1 Rams 1 4" Pipes P Hydraulic Chokes 1 FP Inside BOP 1 P #2 Rams 1 Blind Rams P CH Misc 0 NA FSV Misc 0 NA #3 Rams 1 5.5" Pipes P #4 Rams 0 none NA #5 Rams 0 none NA INSIDE REEL VALVES: #6 Rams 0 none NA (Valid for Coil Rigs Only) Choke Ln.Valves 1 3 1/8 P Quantity P/F HCR Valves 1 3 1/8 p Inside Reel Valves 0 NA Kill Line Valves 2 3 1/8 P Check Valve 0 none NA BOP Misc 0 none NA Number of Failures: 5 Test Results Test Time 8 Remarks: Incomplete test, no mud in pits to test PVT and Power swivel missing lower valve and x-over. Rig will test and report. Location very muddy,could have had better pad prep before rig-up.Hydraulic remote choke rigged up incorrectly,swap lines and correct problem. Panic(Blooey)line had inadequate length and direction,rig will refab line and run out side of pad.Accumulator (Koomey)had poor performance with over 4 minute recharge time, rig will attempt to better time and report back."hours is my time testing does not represent total rig time. • s STATE OF ALASKA Reviewed By: OIL AND GAS CONSERVATION COMMISSION P.I.Supry BOPE Test Report Comm Contractor/Rig No.: Aurora I PTD#: 2121330 DATE: 11/18/2012 Inspector Lou Grimaldi Insp Source Operator: HILCORP ALASKA,LLC Operator Rep: Pederson/McCoy Rig Rep: West/Peterson Inspector Type Operation: DRILL Rams: Annular: Valves: Inspection No: bopLG121120060850 Type Test: BIWKLY Test Pressure: 250/3000 250/1500 250/3000 Related Insp No: TEST DATA MISC. INSPECTIONS: MUD SYSTEM: ACCUMULATOR SYSTEM: P/F Visual Alarm Time/Pressure P/F Location Gen.: P Trip Tank P P System Pressure 2950 P Housekeeping: P Pit Level Indicators P P Pressure After Closure 1650 P PTD On Location P Flow Indicator P P 200 PSI Attained 60 P Standing Order Posted P Meth Gas Detector P P Full Pressure Attained 242 F Well Sign P H2S Gas Detector P P Blind Switch Covers: P Drl. Rig P MS Misc NA NA Nitgn.Bottles(avg): 4 x 1725 P Hazard Sec. P ACC Misc 0 NA Misc NA . FLOOR SAFTY VALVES: 1BOP STACK: I CHOKE MANIFOLD: Quantity P/F ! Quantity Size P/F Quantity P/F Upper Kelly 1 P Stripper 0 none NA No. Valves 12 P Lower Kelly 0 F Annular Preventer 1 11" P Manual Chokes 1 P Ball Type 1 P n #1 Rams 1 4" P Hydraulic Chokes 1 P Inside BOP 1 P #2 Rams 1 Blind P CH Misc 0 NA FSV Misc 0 NA #3 Rams 1 7 5/8" NT #4 Rams 0 none NA - #5 Rams 0 none NA INSIDE REEL VALVES: #6 Rams 0 none NA (Valid for Coil Rigs Only) Choke Ln.Valves 1 3 1/8 P Quantity P/F HCR Valves 2 3 1/8 P Inside Reel Valves 0 NA Kill Line Valves 3 3 1/8 FP Check Valve 0 none NA BOP Misc 4 leaks/froze FP ...... i Number of Failures: 7 Test Results Test Time 32 Remarks: The 3"valve upstream of the kill line(i.e.Demco)leaked and had to be greased FP.3 leaks on stack, Off Drillers Side door leak on the lower rams FP, upper&lower flange on mud cross. 1 froze kill line, 1 missing Kelly valve, 1 Accumulator excessive recharge time. Poor results for weekly test.Hard working crew,weather is worst enemy. i • II Debra Oudean Hilcorp Alaska, LLC GeoTech 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Tele: 907 777-8337 u.kuri, ua.k.i.LTA. Fax: 907 777-8510 E-mail: doudean@hilcorp.com DATE 11/28/2012 To: AOGCC Makana Bender 333 W. 7t" Ave. Ste#100 Anchorage, AK 99501 DATA TRANSMITTAL HAPPY VALLEY B-15 Prints: HV B-15 Formation Log MD 2"=100''° HV B-15 Formation Log ND 2"=100 HV B-15 LWD Combo Log MD 2"=100 ". HV B-15 LWD Combo Log ND 2"=100 - HV B-15 Gas Ratio Log MD 2"=100 HV B-15 Gas Ratio Log ND 2"=100 ' HV B-15 Drilling Dynamics MD 2"=100 — HV B-15 Drilling Dynamics ND 2"=100 '" HV B-15 Final Well Report.doc�,........-- HV B-15 Final Well Report.pdf, CD: Final Well Data 3, X-Q G 3 DAILY REPORTS See CD DML DATA See CD FINAL WELL REPORT Happy Valley B-15 Final Well Report.doc Happy Valley B-15 Final Well Report.pdf LAS FILE HV B-15.1as LOG PDF FILES HV B-15Formation Log MD.pdf HV B-15 LWD Combo Log MD.pdf HV B-15 Gas Ratio Log MD.pdf HV B-15 Drilling Dynamics MD.pdf CD: Final Survey Dat See CD Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: itre.44 Date: 6� � 8 Na ,/ Azis. .,1,I2... 131 STATE OF ALASKA • ALA.OIL AND GAS CONSERVATION COMMISSION GAS WELL OPEN FLOW POTENTIAL TEST REPORT 1a.Test: U Initial ❑Annual Li Special lb.Type Test: Li Stabilized H NOn Stabilized 0 Multipoint ❑ Constant Time ❑ Isochronal ❑ Other: 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Hilcorp Alaska, LLC 10/26/2012 212-132 3.Address: 6. Date TD Reached: 12.API Number: 3800 Centerpoint Drive, Suite 100,Anchorage,AK 99503 10/15/2012 50- 231-20039-00-00 4a. Location of Well(Governmental Section): 7. KB Elevation above MSL(feet): 13.Well Name and Number: Surface: 2,328'FSL,336'FEL, SEC.21,T2S, R13W,S.M. 607 Happy Valley(HV)B-15 Top of Productive Horizon: 8. Plug Back Depth(MD+TVD): 14. Field/Pool(s): 1,350'FSL,710'FEL, SEC.21,T2S, R13W, S.M. 2,898'MD(2,431'TVD) Deep Creek Field/Happy Valley Total Depth: 9.Total Depth(MD+TVD): Sterling 903'FSL,834'FEL,SEC.21,T2S, R13W, S.M. 3,070'MD(2,559'TVD) Beluga 4b. Location of Well(State Base Plane Coordinates NAD 27): 10. Land Use Permit: 15. Property Designation: Surface: x- 223687 Y- 2190942 Zone- 4 N/A Deep Creek Unit(C061589) TPI: x- 223293.7 Y- 2189980 Zone- 4 16.Type of Completion(Describe): Total Depth: x- 223153 Y- 2189527 Zone- 4 5-1/2"monobore 17.Casing Size Weight per foot, lb. I.D. in inches Set at ft. 19. Perforations: From To 7-5/8" 29.7 6.875 1,139 Upper Beluga D 2,467' 2,487' 18.Tubing Size Weight per foot, lb. I.D. in inches Set at ft. 5-1/2" 17 4.892 3,068 20. Packer set at ft: 21. GOR cf/bbl: 22.API Liquid Hydrocardbons: 23.Specific Gravity Flowing Fluid(G): 924 N/A N/A 0.5595 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure(Pa): E Tubing ❑ Casing 70 F° 670 psia @ Datum TVDSS psia 25. Length of Flow Channel(L): Vertical Depth(H): Gg: %CO2: %N2: %H2S: Prover: Meter Run: Taps: 2476 0.5595 0.145 0.601 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 559 43 559 2.0 2. X 535 43 535 2.0 3. X 474 44 474 2.0 4. X 415 46 415 2.0 5. r X Basic Coefficient Flow Temp. Super Comp. No. (24-Hour) hwPm Pressure Gravity Factor Rate of Flow Fb or Fp Pm FactFtor Fg Factor Q1 Mcfd 1. 0.5595 590 2. 0.5595 977 3. 0.5595 1,923 4. 0.5595 2,766 5. Temperature for Separator for Flowing No. PrT Tr z Gas Fluid Gg G 1. 502.67 0.5595 2. 502.67 0.5595 3. 503.67 Critical Pressure 0.5595 4. 505.67 Critical Temperature 0.5595 5. RPr MS NOV 3 0 201 -r 44 Form 10-421 Rev. 7/ 09 yy w ON REVERSE SIDE Submit in Duplicate Pc Pc2 • f 669.5 pf2 448230.25 No. Pt Pte Pc2-Pt2 Pw pw2 Pc2-Pw2 Ps Ps2 Pf2-Ps2 1. 598.8 358561.44 89668.81 2. 573.69 329120.2161 119110.0339 3. 512.48 262635.7504 185594.4996 4. 453.48 205644.1104 242586.1396 5. 25. AOF (Mcfd) 4,089 n 1 Remarks: I hereby certify that the foregoing is true and correct to the best of my knowledge. Signed �.,;. Title Reservoir Engineer Date 11/30/2012 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/ hwPm Fp Basic critical flow prover or positive choke factor Mcfd/psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air=1.000), dimensionless Gg Specific gravity of separator gas (air=1.00), dimensionless GOR Gas-oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet(TVD) L Length of flow channel, feet(MD) n Exponent(slope) of back-pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut-in wellhead pressure, psia Pf Shut-in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia O 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 • • C Cr) d .. N a 00 to N r �i O N O N 0 O CO COQ c- < Q 2 N M E � * O LL d E LL C 2 0 LL Q X o (N o N Oo O O (n co d 0 0 o (O 0(O CO(O o 8LocoVN 6 O 4 M N N M d m .(13 IC) LU C Q •0 0• 0 O •T CO CO CO CO CO t 4- CO (O CO CO CO CO O0.•0. CO co in u) Ln LL CO a+ CN M CO C1 N N O CCOCOOo, N. .2 -+ N O N m 'C O 3 L 11) L y Y 7 LL Q- d i 2 N D L 2 U > 1.6 do ON (ON � G1 C. Q. C d ( 7 - .c N 0 2 2 Z U • • N O co N a _co o —n v -o O 0 —40 N N A 2 2 Ti 2 2 a —u1 n O N O co O O O + n M N a —et M C..: LL -M Q c v a -N O a, 00 n LL —w °a —co d o a Cp —a u IF g C 2 (/) " « i W • A N 0 a N 0. a, N N 4 U) w a) 6. a 2 O v v > -01 TC N —co a o o —n m O .g CL v Y co Q ` a 'v LL m .1-, V 2 Z 3 v co a m x 73 d d N a. t c 'd 2 � Jj� U "" 6.r m O4 ■ d c ..Y O n us V M N n N a M N « n co a co N °? r' 1-4 W b o o m% 0 (zisd904)zdV o) • ' • • Gas Rate(MMscfd) 0 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 N O CO U U 0 c0 N O 00 CO a N 0 0 ei ei c4 N 7 c.i ,..i - r O O O O O O I t I I I I I I I i I I I I N 0 O 1 O O i N a \\ - .... • • • o • Li o iLL •C N C W O O N 4 q N i0 C • O W � N W ld }0 N CI O v O 0 d m U. N FE N QO oa' Q .O 0 • • O F IL M et d C N W a M m o .T- cc; M N M 2 0 4 O t 3 O o O • M a LL et 'v 'O N m W RIw10 O1.15MNO =mam>mmcn • OdN3 N Wd CO my r� a 0 452 TR O N . O m N — O o �C)�p t- co N et CO N O co co m a V V V a V V a V V V 7 7 7 V a N �O ((e)!sd)amssaJd aae;pues (ip STATE OF ALASKA ALA OIL AND GAS CONSERVATION COM A ION WELL COMPLETION OR RECOMPLETION REPORT AND LOG la.Well Status: Oil❑ Gas 0 SPLUG ❑ Other ❑ Abandoned ❑ Suspended❑ lb.Well Class: 20AAC 25.105 20AAC 25.110 Development 0 Exploratory ❑ 1 GINJ ❑ WINJ❑ WAG ❑ WDSPL❑ No.of Completions: 1 Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp.,Susp.,or 12. Permit to Drill Number: Hilcorp Alaska, LLC Comp. 10/26/2012 212132 - 3.Address: 6. Date Spudded: 13.API Number: 3800 Centerpoint Drive,Suite 100 Anchorage,AK 99503 10/4/2012 50-231-20039-00-00 4a. Location of Well(Governmental Section): 7. Date TD Reached: 14.Well Name and Number: Surface 2972'FSL,322'FEL,Sec 21,T2S, R13W,SM • 10/15/2012 Happy Valley B-15 • Top of Productive Horizon: 8. KB(ft above MSL): 607 15. Field/Pool(s): 1350'FSL,710'FEL,Sec 21,T2S, R13W,SM GL(ft above MSL): 593 Deep Creek Field/Happy Vaftli:- Total Depth: 9. Plug Back Depth(MD+TVD): Sterling-A 4at24-t5e -o 903'FLS,834' FEL, Sec 21,T2S,R13W, SM 2,898'L 2,'Sql f, /'z''3 A� 'iz /3 4b. Location of Well(State Base Plane Coordinates, NAD 27): 10.Total Depth(MD+TVD): 16. Property Designation: Surface: x- 223686 y- 2190942 Zone- 4 • 3,069'/2,558' - C061589 TPI: x- 223293.7 y- 2189980 Zone- 4 11. SSSV Depth(MD+TVD): 17. Land Use Permit: Total Depth: x- 223150.0 y- 2189533.0 Zone- 4 N/A N/A 18. Directional Survey: Yes 0 No ❑ Definitive MWD Survey 19.Water Depth, if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) N/A 21. Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/TVD: Mud Log,Quad Combo, Gamma Ray, Resistivity, Neutron, Density,Sonic N/A 23. CASING, LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT (CASING FT GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED I- 10 3/4 45.5 L-80 0 98 0 98 - Conductor 7 5/8 29.7 L-80 0 1,139 0 1,073 9 7/8" 583' 3 5 1/2 17 L-80 924 .8.95.3051, 8?S 2,548 6 3/4" 293' 3 /-$-/3 24. Open to production or injection? Yes 0 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): 5 1/2" 924 N/A See attached schematic RECEIVED26. ACID, FRACTURE,CEMENT SQUEEZE, ETC. Was hydraulic fracturing used during completion? Yes ElNo [l :41. NOV 2 12012 DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED ,--41/1) AOGCC 27. PRODUCTION TEST late First Production: Method of Operation(Flowing, gas lift,etc.): Flowing . 10/26/2012 Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: 10/30/2012 24 Test Period -.+. 0 2,525 0 N/A N/A Slow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API (corr): Press. 436 psi 0 24-Hour Rate ,-IP, 0 2,525 0 N/A 28. CORE DATA Conventional Core(s)Acquired? Yes❑ No 0 . Sidewall Cores Acquired? Yes❑ No 0 ' If Yes to either question, list formations and intervals cored(MD+TVD of top and bottom of each),and summarize lithology and presence of oil,gas or water (submit separate sheets with this form,if needed).Submit detailed descriptions,core chips,photographs and laboratory analytical results per 20 AAC 25.071. ' S NOV 26 20'17 71 G Form 10-407 Revised 10/2012 CONTINUED ON REVERSE Q4- Submit original only 0 �f Wiz- /3 ` , s • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? f:/j Yes [ No If yes, list intervals and formations tested, briefly summarizing test results,Attach separate sheets to this form, if needed, and submit detailed test information per 20 AAC 25.071. Middle Sterling 1,296 1,198' Sterling 1,899' 1,682' Perf 2,467'-2,487' Flow 1.06 Mcfgd @ 560 FTP Beluga 2359' 2,025' • Formation at total depth: 31. List of Attachments: Final Schematic, Daily Reports, Definitive Directional Survey,Casing Tally, Cementing Report(to be submitted late due to vendor computer issues) 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Email: Ikeller@hilcorp.com Printed Name: Luke eller � Title: Drilling Engineer Signature: , Phone: 907-777-8395 Date: 11/21/2012 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 b: Classification of Service wells: Gas Injection,Water Injection,Water-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection,Observation,or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI(Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval(multiple completion), so state in item 1,and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing,Gas Lift, Rod Pump, Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other(explain). Item 28: Provide a listing of intervals cored and the corresponding formations,and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation,and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 10/2012 0 Happy Valley II SCHEMATIC Well: HV B-15 As Completed 10/26/12 I-bkorp Alaska,Ilk Ground Elev:593'Above MSL KB-THF:14.7' ;.1 : s 1 L Io-3/4'' _ CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 10-3/4" Conductor 45.5 L-80 - 9.95 Surf 98' 7-5/8" Prod Csg 29.7 L-80 Buttress 6.875 Surf 1139' 5-1/2" Prod Lnr 17 L-80 VAM STL 4.892 924' 3,056' TUBING DETAIL 5-1/2" Production 17 L-80 VAM STL 4.892 Surf 924' JEWELRY DETAIL No. Depth ID OD Item 1 924' 4.892 - JMZX Liner Hanger PERFORATION DETAIL ' r Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) Feet SPF Date Upr BLG D +/-2,467 +/-2,487 +/-2,105 +/-2,120 20 6 10/26/12 V a, Y*: Si IA 7-5/8" — 12 1 1i 34 .' /"17 r Upper Beluga D r 5-1/2"L..,A'''.'.. at, - TD=3,069' MD/2,558' TVD PBTD: 2,898' MD/2,431' TVD Updated by LEK 11/21/2012 • • Hilcorp Alaska, LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date HVB-15 50-231-20039-00 212132 10/1/12 Daily e�lul i 9p rn „d���' 09/26/2012-Wednesday No Activity. 09/27/2012-Thursday No Activity. 09/28/2012-Friday No Activity. 09/29/2012 Saturday®� No Activity. 09/30/2012-Sunday No Activity. 10/01/2012-Monday Pre-job Safety meeting. Run and hook up lines between units. Raise and scope derrick,tie off guy wires.Spot parts house and diesel tank. Set oil shed,dog house,water tank,stairway& landing,spot Halliburton tank.Remove flange on sand trap, hook up equalizer line, set coil tank,and gas buster. 10/02/2012-Tuesday Pre-job safety meeting. Hook up Halliburton charge pump,set shakers, set stairs and handrails for dog house. Pull lines & hook up pump electr, burm up backside of rig,set Canrig unit, run water lines,fill water tank.Set up light plants, ran power lines for Hilcorp coil pit. Nipple up stack and annular.Rig up rig floor,set stairs to doghouse and pits,continue rigging up. Page 1 of 1 • • • Hilcorp Alaska, LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date HVB-15 50-231-20039-00 212132 10/1/12 "y baily Operatio3'is 10/03/2012-Wednesday Pre-Job Safety Meeting.Set and bolt up riser,spacer spool,flow nipple.Bolt knife valve to stack,secure rig floor w/chain,set stairs for rig floor T/bo. N/U diverter line and secure to cement blocks, hook Koomy to knife valve and test. Function test knife valve, annular, gas alarms,test witnessed by Bob Noble AOGC,finish modifying and installing flow line,hooked up trip tank,PU power swivel set herculite for skate and set,set cuttings boxes,repair and change couplings on kelly hose,work on power to Halliburton tank. 10/04/2012-Thursday Pre-Tour Safety Meeting. MU new fittings on Kelly hose hooked up with stand pipe, RU tongs. Finish mixing spud mud, hook up trip tank hoses,run 2"circ.hose.Raise windwalls in derrick,function test mud pumps,calibrate drum.Make up XO on DP and run wear ring,load BHA on racks.P/U DC and work into conductor pipe,check surface equipment.Tagged up @82',drill down,PU MWD&work up and down to orient.PU remainder BHA,wash down. 10/05/2012-Friday Pre-Tour Safety Meeting. Drill 2 joints down, PU MWD&Stab.Drill w/HWT to 185'.POOH to BHA,lay down HWT DP, PU Flex collars,PU power swivel,hook up kelly hose.Drill to 270',slide F/270'T/301'.Drilled 2 joints,lay down 2 joints.PU jars,GIH.Drill to 423',slide F/423' T/444'.Drill to 455', #1 Pump.Wear plate washed out,change wear plate and liner. 10/06/2012-Saturday Pre-Tour Safety Meeting. Drill F/473'T/484',slide F/484'T/514'.Work pipe, circulate hole clean,take survey. POOH for short trip while working on power swivel.CanRig&SLB hooking up equipment on drawworks.TIH to bottom 514',Kelly up. Backream from 514'to 484'. Drill and slide to 575', drill and Slide T/698', drill and slide T/760', drill and slide T/792'. Power swivel went out, POOH to shoe while working on power Swivel.Working on power swivel/changing out motor on swivel.Tripping back in to hole. 10/07/2012-Sunday Pre-Tour Safety Meeting. Repair power swivel.TIH, PU power swivel,ream to 761', slide T/888', rotate T/898',;slide T/919',drill T/924', slide T/953, drill T/958, slide T/984, drill T/989', slide T/1016', drill T/1,021', slide T/1,044', drill T/1,057'. Having to clean sand from pumps,and tank,working on xfer pump. 10/08/2012-Monday Pre-Tour Safety Meeting.Circulate and condition,clean sand from transfer pump.Drill to 1,173'TD.yump bottoms up,take survey.POOH 4)..)- to shoe, RIH to bottom. Kelly up and circulate until shakers cleaned up. POOH, stand back HWT, lay out directional BHA and jars. RU S Weatherford casing tools,hold Pre-Job Safety meeting.Ran 7-5/8"L-80 BTC 29.7#cajng.PU Cameron landing joint,land in casing hanger. 19 RD Weatherford casing tools,RU SLB cementing head. 10/09/2012-Tuesday Pre-Tour Safety Meeting.Rig down Weatherford casing tools,RU SLB cementers equipment.Circulate hole through SLB cement head.Pre- Job safety meeting with SLB cementers.Test SLB lines to 3,000psi,cement surface,displace with rig,did not bump plug,RD SLB,flush out cement lines and SLB equipment. PO of hanger&instl pack-off, RI lockdown pins,test pack-off to 3,000psi.Vacuum cellar, ND Diverter. 4,0v, Repair&install charger pump,rig up to install BOP stack.NU BOPS,set choke skid,install choke,kill,and flow line. GSI • 7 Page 1 of 1 • I ,k Hilcorp Alaska, LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date HVB-15 50-231-20039-00 212132 10/1/12 Daily Operations: 10/10/2012-Wednesday Pre-Tour Safety Meeting. NU Annular,choke skid,choke line, kill line,flow line,gas buster.Change out upper rams(4"),change out#2& #3 bladders in Koomey,PU test joint,TIW,Dart valve,fill stack with water,hook up chart recorder.Run choke lines to super choke,RU test pump.Test Alarms,function test stack,swap lines on stack,test good.Test BOPs. Had to recharge 2 Nitrogen bottles.Clean pits, repair Haliburton transfer pump,RD test equip,work on blooey line. 10/11/2012-Thursday Pre-Tour Safety meeting. Clean pits, pull test plug, install wear ring . Load up catwalk, PU BHA, repair and refurbish transfer pump on rental tank. Modifying Blooey line as per AOGCC. RIH with HWDP and Jars, MU kelly.Change out shaker screens, RU pump on slop tank, mix and transfer new mud to system.RD power swivel,POOH install float sub,RIH,Circulate and shallow test SLB. 10/12/2012-Friday Pre-Tour Safety Meeting.Waiting on floor valve,waiting on AOGCC as per Lou Grimaldi. RU and Install new valve to test port and test. Break circulation,circulate BU. RU and test casing to 1,700 psi, positive test-charted.Tag cement @ 1,062',drill float equip/shoe track, drill shoe, drill to 1,183'.Wait on AOGCC rep Lou Grimaldi to witness FIT. Performed FIT to 11.0 EMW-charted. Re-tested Koomey for AOGCC,failed,recharged,passed.Directional drilling ahead. 10/13/2012-Saturday Pre-Tour Safety Meeting. Drill and slide to 1,484', pump Hi-Vis sweeps,survey every joint. Drill and slide to 2,309', pump Hi-Vis sweeps, survey every joint. Pump sweep around,circulate 2XBU,POOH to shoe-short trip. 10/14/2012-Sunday Pre-Tour Safety Meeting. Finish POOH to shoe working through any tight spots. Finish TIH, break circulation and take survey, run in and tag bottom.Drill and slide to 2,814',pumping sweeps to clean hole,wiping tight spots. 10/15/2012-Monday Pre-Tour Safety Meeting. Drill and slide to 3,100' TD. Pump Hi-Vis sweep around. Make wiper trip to shoe, no problems. Pump Hi-Vis sweep around, circulate two bottoms up. POOH, rack DP in derrick, break and lay out BHA. RU Halliburton wireline, go in hole and log open hole. 10/16/2012-Tuesday Pre-Tour Safety Meeting. PU clean out BHA,start tripping in hole,ran in BHA and 6 stands DP.Broke circulation.Continue RIH to bottom, MU power swivel,circulate sweep around reciprocating drill string,circulate hole clean.POOH strapping out.Pre-Job safety meeting with Weatherford casing crew.Rig up Weatherford casing tools,PU and RIH with 5.5"17#Vam ST-L L-80 Liner. Page 1 of 1 Hilcorp Alaska, LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date HVB-15 50-231-20039-00 212132 10/4/12 C ,1)1) m,_ 6oliyrtro °.. In;Vutpn,a� �i�i��������fl�y�i� }I,' 10/17/2012-Wednesday Cont RIH with 5.5" 17#Vam ST-L L-80 Liner for a total of 51 jnts to 3,056',filled every 5 joints,centralized every other jnt,MU Baker ZXP 5.5"x 7.63" liner hanger, mix and fill with palmix,wait 30 minutes to set up,CO handling equipment for 4" DP, RIH one stand, MU circ head and circ one pipe volume. RIH on 4"DP total 14 stnds plus single to 3,026',up wt 45K,dwn wt 26K.RU to circ,break circ at 91 spm- 600 psi,MU Baker cement head on single,removed circ head,MU cement head and single on string,MU kelly hose and break circ at 114 spm-800 psi,CBU and attempt to reciprocate,could not PU or dwn. Notified drilling engineer,pulled max of 120K up numerous times, could not get string to pull free,could not rotate string with tubing tongs(no torque gauge),decision made to cement in place 12' high. Cont circ, SLB mixed MudPush, RU SLB hardlines to rig floor, serviced shaker gen. Held PJSM with rig crew, SLB, AIMM driver, mud engineer.Test SLB lines,pump mudpush and cement as per program,CIP at 23:10 hrs.Set ZXP liner hanger as per Baker,unsting run tool, PU 15'to circ. Begin circ,did not see MudPush or cement at surface. Mud PH 9 to 10.5, LD cement head, POOH rack back DP, LD liner hanger running tool.Clean rig floor,clean/organize location,RT 2 7/8"string,LD 4"HWDP. 10/18/2012-Thursday Clean and organize location,rig floor, bag up casing protectors. Lay down all excess 4"DP and HWDP.CO handling equipment,RU tubing tongs. Rack and tally 83 jnts 2 7/8"Hydril,MU junk mill,string mill and XO's.Cont PU and RIH with 66 jnts 2 7/8" Hydril,MU Baker polish assembly and XO's.PU Baker tools,RIH with 14 stands 4"XT-39 workstring, PU single,PU power swivel and kelly up.Attempt to circulate, flow line froze up at shakers,thaw out flowline. 10/19/2012-Friday Continue thaw flowline and transfer lines. Break circ, cont wash and ream 22' to bottom and tag NO GO on liner top. Encountered no cement washing down through liner. Cleanout depth is 2912'. CBU x 2. RU chart recorder, close rams, test casing at 1,500 psi for 30,- minutes.Good test. Clean AWS pill pit,mix 20 bbl hi-vis pill,R&T 5 1/2"completion string,pump 20 bbl sweep followed by 150 bbls fresh water.Short trip OOH 14 stands to upper scraper,RIH,up wt 34K,dwn wt 28K.Change out gen set, prep to mix KCL in coil tank,wait on super sucker. Mix 200 bbls KCL water. Clean Halliburton tank with super sucker. Displace fluid in well with KCL through 25 micron filter pod,blow down lines.Move filter pod to tank,load fluid through filter to vac truck for injection.Rig down and lay out power swivel,POOH laying down workstring and Baker tools. 10/20/2012-Saturday PJSM with rig crew, service rig.Continue POOH LD 2 7/8" Hydril tubing. Clear rig floor of handling equipment, pull wear bushing,clean pits,build 50 bbls inhibited fresh water,stage Weatherford equipment and RU,stage seals and pups,MU hanger on landing jnt,line up for returns. MU Baker tieback seal assembly, PU RIH with 21 jnts 5 1/2"completion. PU joint 22+pup, RU circ head,ease into SBR and verify seals,bleed off and tag NOGO on liner top,PU and verify space out,LD single,MU pups.MU circ head,pump 40 bbls inhibited fresh water to load tubing and backside. MU hanger and landing jnt,land hanger, up wt 21K,dwn wt 20K. Unsting from hanger&run packoff,run in lock down screws,RU to test.Test Ann.Failed,pull pack-off,redress and reset.Test down tubing for 30 min @ 1,000psi-Good. Bleed off line and hook up hoses to dest down Ann.Test 5 1/2"X 7 5/8"production ann.to 1,000psi for 30 min-Good. Blow down all mud lines, wash off stack,nipple down BOPs. 10/21/2012-Sunday Held PJSM with rig crew on ND BOP. Cont ND BOP stack and remove from cellar.Start RD of service shacks, pipe wrangler, pipe racks, rental fuel tank,power swivel power pack,AWS heater, NU 5"5K tree,test void,load tree with methanol and test to 5K f/15 min.Snake plastic tubing down innner annulus and displace inhibited fresh water with methanol.Cont RD while NU tree, RD and move AWS pits,oil shack,gen shack,rig pumps,load out Weatherford casing equipment,release rig at 18:00 hrs. 10/22/2012- Monday 10/23/2012-Tuesday Page 1 of 1 • „„ Hilcorp Alaska, LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date HVB-15 50-231-20039-00 212132 10/4/12 10/26/12 Daily Operations: 10/24/2012-Wednesday No activity. 10/25/2012-Thursday No activity. 10/26/2012-Friday Labor, dig& set vault,fuelcharge for rig, electrical parts, rental. Spot unit, make up tools and lubricator, pressure test to 2,000 psi. RIH, pressure up to 650psi, bleed off to 620psi, RIH to 2,459.2', 7.8' to topshot. Perforate 2,467'-2,487', 6 shots/ft, Pressure increased from 622-642 psi in 30 mins. RD Pollard and release. - 10/27/2012-Saturday 10/28/2012-Sunday �,l�h,'�. 10/29/2012-Monday 10/30/2012-Tuesday Page 1 of 1 III 111 p V W e WC)rr7PE 2tt W 541.007 3 -6°2 H d m c 2 32 X33 II Im n Nm;OOD O C a~v 2 < t;G rr 6 g --541U nX 0 O m N D w .. 9 m' SLR O N NNN N TOM N N N ((�T t$ 3 W,0014 W N+o O 0-,V W m A( W NJa+(.t OW... W..V WW V m A 04,-, mmm V V -,0110100 O++NN AONA O. .p.o. NmJ m+m+m NJN J pN�m pWp�1m pp ....166 m�tAT W -,tNOOAo V W mm+AN J-.K,668 Om AO ...!...1...+0 N W N-++ Jm V mO�O + + o1.Z22 mW O2W 222 7 2G 0 mw+01›-.a< GG980 Om02.Q0WW.0m 0 -,mN%„ .-. ..mm< m O O +A W O.. ° AWAAA AAAAA AWQWW WWWWW WOWNN 0 + m O 0.0++ WNN++ mOmm Ummm. own,m0 mNOmN +0000 U0U+j O , ..... 0 mmmNV AOAW +GAm VOmOlo OJmA mWOmA .-.,.1666.-.P, ,WA-.1. AWNOO mJWW N+.4N+.40'.., 0000J mm+Am mW+00.° mmN WO0N N+AO . 3 yN CCm ` NNDm w O 0 00000Nm 3 OW... 0000 VWNWWNpp ppWWAwN W -- .OA.. 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Rm:mi /@a §2 2 ƒ § 93 a\saJ a §§§ 30 g0 Al IV IV CO CO CO CD CD CO • Sglg 3a g'Z218 3i SgS (13 o $$( C ! j k\E 2g- G §§§ in in in CI) E NO s.,w •2e • Hilcorp HV B-15 0 0 lb !$''°"""fl Al.`4.c,F6-z: RKB TO MUD LINE: Production Liner WATER DEPTH: 0.00' Casing O.D.: 5 1/2 inches Block Wt: 20,000 lbs. TD 6-3/4"Hole 3,070.00' Weight per Foot: 17 ppf Mud Wt. 9.0 ppg Csg Shoe Depth 3,068.00' Grade: L-80 String Wt: lbs. RKB to Wellhead 17.50' Threads Vam ST-L Foreman: Rodney McCoy Last Csg Depth 80.00' RUN TALLY DIST. Buoyancy Wt. 0.00' Btm.Set String Weight #of jts JT.NO. LENGTH Depth Cum.Lngth DETAILS Displacement ON PIPE 3,068.00' 20,033 lb Shoe 2.25' 3,065.75' 2.25' 0 bbl 20,645 lb 1 41.73' 3,024.02' 43.98' Cent.Pre-Installed 0 bbl 21,259 lb Bkr Lk Jt 41.88' 2,982.14' 85.86' Solid Body Cent. W/stop collar 1 bbl 21,284 lb Collar 1.67' 2,980.47' 87.53' 1 bbl 21,874 lb 3 40.29' 2,940.18' 127.82' Cent.Pre-Installed 1 bbl 22,491 lb Lndg Clr 42.02' 2,898.16' 169.84' 1 bbl 23,065 lb 5 39.18' 2,858.98' 209.02' Solid Body Cent. W/stop collar 1 bbl 23,644 lb 6 39.47' 2,819.51' 248.49' 2 bbl 24,208 lb 7 38.50' 2,781.01' 286.99' Solid Body Cent. W/stop collar 2 bbl 24,787 lb 8 39.45' 2,741.56' 326.44' 2 bbl 25,361 lb 9 39.18' 2,702.38' 365.62' Solid Body Cent. W/stop collar 2 bbl 25,924 lb 10 38.39' 2,663.99' 404.01' 3 bbl 26,505 lb 11 39.59' 2,624.40' 443.60' Solid Body Cent. W/stop collar 3 bbl 27,101 lb 12 40.67' 2,583.73' 484.27' 3 bbl 27,718 lb 13 42.02' 2,541.71' 526.29' Solid Body Cent. W/stop collar 3 bbl 28,310 lb 14 40.39' 2,501.32' 566.68' 4 bbl 28,926 lb 15 42.02' 2,459.30' 608.70' Solid Body Cent. W/stop collar 4 bbl 29,530 lb 16 41.21' 2,418.09' 649.91' 4 bbl 30,147 lb 17 42.07' 2,376.02' 691.98' Solid Body Cent. W/stop collar 4 bbl 30,756 lb 18 41.50' 2,334.52' 733.48' 5 bbl 31,372 lb 19 42.02' 2,292.50' 775.50' Solid Body Cent. W/stop collar 5 bbl 31,988 lb 20 42.00' 2,250.50' 817.50' 5 bbl 32,605 lb 21 42.05' 2,208.45' 859.55' Solid Body Cent. W/stop collar 5 bbl 33,163 lb 22 38.08' 2,170.37' 897.63' 6 bbl 33,779 lb 23 42.04' 2,128.33' 939.67' Solid Body Cent. W/stop collar 6 bbl 34,396 lb 24 42.03' 2,086.30' 981.70' 6 bbl 35,012 lb 25 42.03' 2,044.27' 1,023.73' Solid Body Cent. W/stop collar 6 bbl 35,629 lb 26 42.04' 2,002.23' 1,065.77' 7 bbl 36,245 lb 27 42.02' 1,960.21' 1,107.79' Solid Body Cent. W/stop collar 7 bbl 36,855 lb 28 41.63' 1,918.58' 1,149.42' 7 bbl 37,472 lb 29 42.08' 1,876.50' 1,191.50' Solid Body Cent. W/stop collar 7 bbl 38,088 lb 30 42.00' 1,834.50' 1,233.50' 8 bbl 38,674 lb 31 39.98' 1,794.52' 1,273.48' Solid Body Cent. W/stop collar 8 bbl 39,291 lb 32 42.02' 1,752.50' 1,315.50' 8 bbl 39,907 lb 33 42.02' 1,710.48' 1,357.52' Solid Body Cent. W/stop collar 8 bbl 40,523 lb 34 42.05' 1,668.43' 1,399.57' 9 bbl 41,140 lb 35 42.05' 1,626.38' 1,441.62' Solid Body Cent. W/stop collar 9 bbl 41,756 lb 36 42.01' 1,584.37' 1,483.63' 9 bbl 42,373 lb 37 42.05' 1,542.32' 1,525.68' Solid Body Cent. W/stop collar 9 bbl 42,910 lb 38 36.63' 1,505.69' 1,562.31' 10 bbl 43,487 lb 39 39.34' 1,466.35' 1,601.65' Solid Body Cent. W/stop collar 10 bbl 44,029 lb 40 36.98' 1,429.37' 1,638.63' 10 bbl 44,645 lb 41 42.03' 1,387.34' 1,680.66' Solid Body Cent. W/stop collar 10 bbl 45,223 lb 42 39.40' 1,347.94' 1,720.06' 11 bbl 45,804 lb 43 39.61' 1,308.33' 1,759.67' Solid Body Cent. W/stop collar 11 bbl 1 of 2 pages • HHilcorp HV B-15 • 0 lb j$a3e"'"E5;4E"4.">1.`°<` RKB TO MUD LINE: Production Liner WATER DEPTH: 0.00' Casing O.D.: 5 1/2 inches Block Wt: 20,000 lbs. TD 6-3/4"Hole 3,070.00' Weight per Foot: 17 ppf Mud Wt. 9.0 ppg Csg Shoe Depth 3,068.00' Grade: L-80 String Wt: lbs. RKB to Wellhead 17.50' Threads Vam ST-L Foreman: Rodney McCoy Last Csg Depth 80.00' RUN TALLY DIST. Buoyancy Wt. 0.00' Btm.Set String Weight #of jts JT.NO. LENGTH Depth Cum.Lncith DETAILS Displacement 46,420 lb 44 42.02' 1,266.31' 1,801.69' 11 bbl 46,995 lb 45 39.19' 1,227.12' 1,840.88' Solid Body Cent. W/stop collar 11 bbl 47,612 lb 46 42.06' 1,185.06' 1,882.94' 12 bbl 48,228 lb 47 42.02' 1,143.04' 1,924.96' Solid Body Cent. W/stop collar 12 bbl 48,833 lb 48 41.28' 1,101.76' 1,966.24' 12 bbl 49,428 lb 49 40.57' 1,061.19' 2,006.81' Solid Body Cent. W/stop collar 12 bbl 50,044 lb 50 42.02' 1,019.17' 2,048.83' 13 bbl 50,646 lb 51 41.02' 978.15' 2,089.85' Solid Body Cent. W/stop collar 13 bbl 51,435 lb 52 53.84' 924.31' 2,143.69' Liner Hanger 13 bbl 52,364 lb 53 63.35' 860.96' 2,207.04' DP 14 bbl 53,290 lb 54 63.10' 797.86' 2,270.14' DP 14 bbl 54,211 lb 55 62.82' 735.04' 2,332.96' DP 14 bbl 55,136 lb 56 63.12' 671.92' 2,396.08' DP 15 bbl 56,059 lb 57 62.92' 609.00' 2,459.00' DP 15 bbl 56,985 lb 58 63.16' 545.84' 2,522.16' DP 16 bbl 57,914 lb 59 63.35' 482.49' 2,585.51' DP 16 bbl 58,838 lb 60 62.97' 419.52' 2,648.48' DP 16 bbl 59,766 lb 61 63.28' 356.24' 2,711.76' DP 17 bbl 60,695 lb 62 63.35' 292.89' 2,775.11' DP 17 bbl 61,623 lb 63 63.34' 229.55' 2,838.45' DP 18 bbl 62,551 lb 64 63.25' 166.30' 2,901.70' DP 18 bbl 63,475 lb 65 63.02' 103.28' 2,964.72' DP 18 bbl 64,397 lb 66 62.88' 40.40' 3,027.60' DP 19 bbl 65,328 lb 67 63.49' -23M9' 3,091.09' 19 bbl 2 of 2 pages • • HILCORP HV B-15 se i,•e ia.0« =. a.+: RKB TO MUD LINE: Casinq WATER DEPTH: 0.00' Casing O.D.: 7 5/8 inches Block Wt: 0 lbs. TD 9.625"Hole 1,173.00' Weight per Ft: 29.7 ppf Mud Wt. 9.2 ppg Csg Shoe Depth 1,163.00' Grade: L-80 String Wt: lbs. RKB to Wellhead 17.50' Threads BTC Foreman: Rodney McCoy Last Csg Depth 88.00' RUN TALLY DIST. Buoyancy Wt. 0.00' String Weight #ofjts JT.NO. LENGTH Tot.Lngth DETAILS Displacement ON PIPE 1,139.30' 17.50' 489 lb Flt. Shoe 1.67' 1,137.63' 19.17' 0 bbl 1,555 lb 1 34 41.75' 1,095.88' 60.92' CENT W/Stop Collars(10'from btm) 1 bbl 2,590 lb Bkr Lk Jt 33 40.54' 1,055.34' 101.46' CENT W/Stop Collars(10'from btm) 1 bbl 2,623 lb Float Collar 1.30' 1,054.04' 102.76' 1 bbl 3,648 lb 3 32 40.15' 1,013.89' 142.91' CENT 2 bbl 4,677 lb 4 31 40.31' 973.58' 183.22' 2 bbl 5,711 lb 5 30 40.50' 933.08' 223.72' CENT 2 bbl 6,763 lb 6 29 41.20' 891.88' 264.92' 3 bbl 7,782 lb 7 28 39.90' 851.98' 304.82' CENT 3 bbl 8,849 lb 8 27 41.80' 810.18' 346.62' 4 bbl 9,917 lb 9 26 41.86' 768.32' 388.48' 4 bbl 10,989 lb 10 25 42.00' 726.32' 430.48' 5 bbl 12,044 lb 11 24 41.30' 685.02' 471.78' 5 bbl 13,088 lb 12 23 40.90' 644.12' 512.68' 6 bbl 14,148 lb 13 22 41.53' 602.59' 554.21' 6 bbl 15,210 lb 14 21 41.61' 560.98' 595.82' 6 bbl 16,258 lb 15 20 41.05' 519.93' 636.87' 7 bbl 17,308 lb 16 19 41.13' 478.80' 678.00' 7 bbl 18,366 lb 17 18 41.43' 437.37' 719.43' 8 bbl 19,435 lb 18 17 41.89' 395.48' 761.32' 8 bbl 20,499 lb 19 16 41.65' 353.83' 802.97' 9 bbl 21,558 lb 20 15 41.50' 312.33' 844.47' 9 bbl 22,623 lb 21 14 41.72' 270.61' 886.19' 10 bbl 23,689 lb 22 13 41.74' 228.87' 927.93' liner hanger 941 10 bbl 24,758 lb 23 12 41.90' 186.97' 969.83' 10 bbl 25,821 lb 24 11 41.63' 145.34' 1,011.46' 11 bbl 26,887 lb 25 10 41.75' 103.59' 1,053.21' 11 bbl 27,923 lb 26 9 40.60' 62.99' 1,093.81' 12 bbl 28,995 lb 27 8 41.99' 21.00' 1,135.80' 12 bbl 29,085 lb Hanger pup 3.50' 17.50' 1,139.30' 12 bbl 30,118 lb 28 7 40.50' -23.00' 1,179.80' OUT 13 bbl 31,157 lb 29 6 40.70' -63.70' 1,220.50' OUT 13 bbl 32,225 lb 30 5 41.83' -105.53' 1,262.33' OUT 14 bbl 33,291 lb 31 4 41.75' -147.28' 1,304.08' OUT 14 bbl 34,364 lb 32 3 42.04' -189.32' 1,346.12' OUT 15 bbl 35,430 lb 33 2 41.73' -231.05' 1,387.85' OUT 15 bbl 35,430 lb 34 1 -231.05' 1,387.85' 15 bbl 1 of 1 pages • • HV B-15 ,�.,.,�,,,ra.k..�..A. Days Vs Depth 0 500 1000 4,7 1500 c D. a co i) 2000 .,.,...Plan 2500 Actual 3000 3500 0 2 4 6 8 10 12 14 16 18 20 Days • • HV B-15 �:,.�,. �: MW Vs Depth , 0 1 500 1 1000 ,- �v, MW vs Depth 1500 s 0. d 0 v CU in COv i 2000 2500 3000 3500 8.0 8.5 9.0 9.5 10.0 10.5 11.0 11.5 12.0 Mud Density(ppg) 14p it t Prb Z(7 / 3 Regg, James B (DOA) From: Grimaldi, Louis R (DOA) TICS Sent: Wednesday, October 10, 2012 11:57 AM To: rodlmccoy@aol.com Cc: Regg, James B (DOA) Subject: RE: Upcoming BOP test Rod, Sorry I missed talking to you this morning before I left. The following are non-compliance or incomplete items that need to be addressed before drilling out. I would appreciate an update on progress as I may wish to come out to re-inspect. 1. PVT system test, No mud in pits yesterday so we could not test PVT. 2. Power Swivel Valves, missing bottom valve although I approved Mr Mchone to test and chart when valve arrived and is made up. 3. Casing pressure isolator ruptured due to incorrect line installation. 4. Panic line routing and length. 5. Accumulator recharge time of 4:18 exceeds max allowable of 4:00 . 6. Choke to gas buster was not connected, I am interested in how that was to be accomplished as this is not cased hole. Lou Grimaldi Petroleum Inspector N.S. Pager 659-3607 Home 776-5402 Cell 252-3409 1 Happy Valley B-15(PTD 2121320) Casing Test; Formation Integrity Test 10/12/2012 Tests witnessed by AOGCC Inspector L.Grimaldi Happy Valley B-15 Casing Test Time(min) Pressure(psi) 0 10 2000 1 80 1800 .-._.___. 2 135 3 262 1600 -- 4 380 1400 5 525 1200 6 711 1000 7 900 800 8 1200 600 9 1530 400 shut-in 10/0 min 1820 200 5 min 1776 01 , 10 min 1772 0 1 2 3 4 5 6 7 8 9 10/0 5 min 10 15 20 25 30 15 min 1770 min min min min min min 20 min 1769 25 min 1767 end 30 min 1767 Happy Valley B-15 Formation Integrity test Time Pressure(psi) 0.5 10 1 13 250 1.5 14 2 16 2.5 18 200 '- 3 21 3.5 25 150 -- — � 4 31 4.5 37 100 5 46 5.5 56 50 6 70 6.5 89 0 r r r , r , Jill I _, 7 112 'n N rn m L() V Ui Ui Ui Ui N rn CO Ui v 5 c c c c c c c c c lA lD N 06 -E 7.5 139 0 .-- N M v Ln w co m 8 174 8.5 206 :10 sec 202 Mud weight 8.8 ppg 1 min 186 Surface Pressure 206 psi 2 min 173 10 second drop 202 psi 3 min 168 Vol pumped 12.5 gal 4 min 160 Vol returned 9 gal 5 min 151 Drill Out TVD 1193 ft 6 min 146 E.M.W. 12.1 ppg 7 min 140 8 min 136 9 min 131 10 min 129 • 0 TS all E [F [L3 \ SE SEAN PARNELL,GOVERNOR ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSIONANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 Paul Maz7olini Drilling Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive Anchorage,AK 99524 Re: Sterling A,Happy Valley, B-15 Hilcorp Alaska, LLC Permit No: 212-132 Surface Location: 2328'FNL, 336' FEL, SEC. 21,T2S,R13W, SM Bottomhole Location: 842' FSL, 853' FEL, SEC. 21, T2S, R13W, SM Dear Mr. Mazzolini: Enclosed is the approved application for permit to drill the above referenced development well. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to produce is contingent upon issuance of a conservation order approving a spacing exception. Hilcorp Alaska, LLC assumes the liability of any protest to the spacing exception that may occur. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Cathy P.ioerster Chair, Commissioner G-- DATED this /lday of September, 2012. cc: Department of Fish& Game, Habitat Section w/o encl. (via e-mail) Department of Environmental Conservation w/o encl. (via e-mail) RECEIVED STATE OF ALASKA /AKA OIL AND GAS CONSERVATION COI _SION AUG 1 4 2012 PERMIT TO DRILL n 20 AAC 25.005 AOGCC la.Type of Work: lb.Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone ❑ lc.Specify if well is proposed for: Drill 0 • Redrill ❑ Stratigraphic Test ❑ Development-Gas 0 Service-Supply ❑ Multiple Zone ❑ Coalbed Gas ❑ Gas Hydrates ❑ Re-entry ❑ _ Exploratory ❑ Service- WAG ❑ Service-Disp ❑ Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket ❑✓ Single Well ❑ 11.Well Name and Number: Hilcorp Alaska,LLC Bond No. 22035244 • Happy Valley B-15 3.Address: 6.Proposed Depth: 12.Field/Pool(s): 3800 Centerpoint Drive,Anchorage AK,99524 MD: 2772' - TVD: 2000' Sterling A 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): Surface: 2328'FSL,336'FEL,Sec 21,T2S,R13W,Sit') C061589 Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: 1319'FSL,687'FEL,Sec 21,T2S,R13W,Sj4# i(. N/A 9/20/2012 Total Depth: LA 9.Acres in Property: 14.Distance to Nearest Property: 842'FSL,853'FEL,Sec 21,T2S,R13W,S/'u 2534.42 acres approx. 336' 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL: 607' 15.Distance to Nearest Well Open Surface: x- 223687.2 . y- 2190941.6 Zone- 4 / to Same Pool: 1104'-HV B-14 (7y22. �e-� 67:,t<</7(.-f,- 5?3 Ms/_ 16.Deviated wells: Kickoff depth: 300 feet 17.Maximum Anticipated Pressures in' sig(s e 20 AAC 25.035) Maximum Hole Angle: 61.85 degrees Downhole: 886 psi - Surface: 686 psi 18.Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity,c.f.or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Conductor 10-3/4" 45.5 L-80 - 100 0 0 100 100 Surface 7-5/8" 29.7# L-80 BTC 1300 0 0 1300 1220 430 ft3 Int Prod 5-1/2" 17# L-80 STL 1672 1100 1059 2772 2000 231 ft3 Tieback 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugs(measured): Effect.Depth MD(ft): Effect.Depth TVD(ft): Junk(measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): 20. Attachments: Property Plat 0 BOP Sketch 0 Drilling Program 0 Time v.Depth Plot 0 Shallow Hazard Analysis❑ Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program 2 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Pi4L.&L M AZZoL../,J 0 Title T ti-i.//1 M 144VA6 .& Signature ?cuiJ /' / Phone 907-777-S34:8 Date 68/13/ZOi?.... Commission Use Only Permit to Drill API Number: Permit Approval A, See cover letter for other Number: 2- i Z /.:S Z-- 50- 2 2N I 2C-4.)-3?-c-'0--a- Date: l /i f requirements. Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coalbed meth ne,gas hydrates,or gas contained in shales: al Other: 'r- /- [/ Samples req'd: Yes❑ No ' Mud log req'd: Yes ❑ No El •!� 3c� ps.i.. r3v� ��� H2S measures: Yes❑ No Q Directional svy req'd: Yes 0 No❑ /2" �Le.,- -e- 1� .v.rpra i-�-v2‘-'9 2 44(- Z3 c (k) /� (Z) 9.0..e_c__j APPROVED BY THE COMMISSION DATE: - ll-/2 w4._ ,COMMISSIONER ,A1 e..== ORIGIN i , 0:. Form 10-401(Revised 7/2009) This permit is valid for 24 months from the date of approval(20 AAC 25.005(g)) Submit in Duplicate A • • Hilcorp Paul Mazzolini Hilcorp Alaska,LLC Enemy Company Drilling Manager P.O. Box 244027 Anchorage,AK 99524-4027 Tel 907 777 8369 Email pmazzolini@hilcorp.com August 15, 2012 Commissioner Alaska Oil &Gas Conservation Commission 333 W. 7th Avenue Anchorage, Alaska 99501 Re: Happy Valley,Well HV B-15 Dear Commissioner, Enclosed for review and approval is the application for the Permit to Drill well B-15 from pad"B" in the Happy Valley field. HV B-15 is a 2772' MD / 2000' TVD development gas well planned to be drilled from pad "B" and targets the Sterling A gas sand. Drilling operations are expected to commence approximately Sept 20th, depending on the progress of other ongoing projects. A spacing exception is required to produce HV B-15 and enclosed with attached APD. An exception to regulation 20 AAC 25.035 (c)(1)(A) which states, "...a diverter vent line with a diameter of at least 16 inches, unless a smaller diameter is approved by the commission to account for smaller hole size..." is requested. HV B-15 surface hole will be 9-7/8", Hilcorp requests the use of a 12"diverter vent line. Pursuant to 20 AAC 25.005(c)&(d),the following is included: 1. Plat identifying the property on which the well will be drilled 2. Diagram&description of blowout prevention equipment 3. Information on drilling hazards a. MASP calculations are attached per 20 AAC 25.005(c)(4)(A) b. Target reservoir and predicted pore pressures are indicated in attached HV B-15 Well Design Summary 4. Formation integrity test procedure 5. Planned casing&cement program HV B-15 Well Design Summary 6. An 11" Schaffer annular will be used for a diverter while drilling 9-7/8" surface hole Schematics are attached. 7. Drilling fluid program 8. Tabulation of predicted depths with equivalent formation pressures. 9. Seismic refraction or reflection analysis— Not required, for exploratory or stratigraphic test well only. 10. Requirements of 20 AAC 25.025 have been met. a. HV B-15 covered under bond no.22035244 11. Copy of drilling design summary. 12. General description of waste disposal. Operator does not wish to request authorization under 20 AAC 25.080 for an annular disposal operation in the well. Hilcorp Alaska,LLC Page 1 of 2 • • a. Qualified drilling waste will be delivered to Aimm Technologies, Inc or Emerald Services, Inc for appropriate treatment& disposal pursuant to state &federal regulations. 13. Requirements of 20 AAC 25.050(b) have been met. a. Rat showing path of proposed wellbore including all adjacent wellbores within 200'is attached. b. All wellbores within 200'of proposed wellbore are owned by Hilcorp. If you have any questions, please don't hesitate to contact myself at 777-8369 or Luke Keller at 777- 8395. Sincerely, a4"<ii4t Paul Mazzolini Drilling Manager Hilcorp Alaska,LLC Page 2 of 2 • Happy Valley B-15 Hilcorp Well Design Summary Emmy comms HV B-15 Well Design Summary HV B-15 is a development gas well planned to be drilled from the existing Happy Valley "B" pad. Pay interval is the Sterling A which occurs from 1667' to 1734' TVD. 4 a HV B-15 is designed as a "Build & Hold" well reaching 61.85 degrees inclination in the tangent section and reaching a total depth of 2772' MD MD / 2000' TVD. HV B-15 will be drilled using the Aurora Well Service Rig #1 (AWS #1). Basic Well Information Well Name: HV B-15 Estimated Spud Date: 10/1/2012 Field: Happy Valley Productive Horizon: Sterling A . Total Depth: 2772' MD MD / 2000' TVD. Surface Location: 2328' FNL, 336' FEL,S X=223687.2, Y=2190941 .6, NAD27, ASP, Zone 4 S. Planned BHL: 842' FSL, 853' FWL, 27moi—f �c z.%} 1 ZS /Z/Set) J'l�t.. LI , X=223138.3, Y=2189467, NAD27, ASP, Zone 4 Ground Elevation: 593' AMSLq t� KB elevation: 14' Planned HV B-15 Casing & Tubing Program Hole Tube Weight Length Top Btm Size (in) O.D. (lbs / ft) Grade Conn (ft) MD/TVD MD/TVD (in) (ft) (ft) - 10-3/4" 45.5 L-80 - 100' 0 100' 9-7/8" 7-5/8" 29.7 L-80 BTC 1300' 0 1300'/1220' 6-3/4" 5-1/2" 17 L-80 STL 1672 1100/1059 2772/2000 5-1/2" 17 L-80 STL 1100 0 1100 8/13/2012 Page 1 of 8 Happy Valley B-15 Hilcorp Well Design Summary Entapy Cuutparq Well Control Summary Hole Section Equipment Test Pressure (psi) 9-7/8" • 11 " 3M Schaffer Annular (Used as diverter) • 11 " 3M Schaffer Annular • 1 1 " 3M Schaffer LWS Double ram (3-1/2" fixed pipe rams in upper cavity, blind 6-3/4" rams in lower cavity). 250/3000 • 1 1 " 3M Mud cross w/ 3-1/8" outlets (Annular 2100 psi) • 1 1 " 3M Schaffer LWS Single Ram (5-1/2" casing rams) Schematics of the well control equipment are attached for reference. NOTE: An exception to regulation 20 AAC 25.035(c)(1)(A)which states, "...a diverter vent line with a diameter of at least 16 inches, unless a smaller diameter is approved by the commission to account for smaller hole size..." is requested. Surface hole size will be 9-7/8", Hilcorp requests the use of a 12" diverter line. Anti-Collision Evaluation Summary B-12, B-13, & B-14 are drilled from the same pad. Wellbore ellipses will not touch while drilling the B-15 wellbore. HV B-15 will be drilled with a mud motor/ MWD assy and surveyed every 95' while drilling. The B-15 wellbore diverges from the (3) offset wells at kick-off point @ 300' MD/TVD. Close B-15 Path Ellipse Separation Diverging Approach Well Well Status (MD ft) (ft) From (ft) B-12 Producing 0-300 65' 300 B-13 Producing 0-300 35' 300 B-14 Producing 0-300 80' 300 8/13/2012 Page 2 of 8 Happy Valley B-15 Hilcoip Well Design Summary Emmy comm' Formation Integrity Testing Test Point, Projected Test Fluid Density Projected Projected 20' Below... Depth (TVD) Type Used for Test Test (EMW Surface ppg) Pressure 7 5/8" Shoe 1220' FIT 9.0 12.0 190 psi Note: Anticipated fracture gradient at 7-5/8" shoe is 0.77 psi/ft(14.8 ppg) based on offset well data. 12 ppg was chosen as the FIT threshold to allow for appropriate kick margin but avoid fracturing the formation. Casing Testing Fluid Density in Test String Casing Pressure Test Duration Casing Burst (PSI) 7-5/8" 9.0 1500 30 min 6890 psi 5-1/2" 8.5 1500 30 min 7740 psi 8/13/2012 Page 3 of 8 Happy Valley B-15 Hilcorp Well Design Summary Emmy compas7 Mud Program Summary Surface Hole Section (9-7/8" hole, 7-5/8" casing to 1300' MD) System Type: 8.8ppg 2%KCl/EZ MUD fresh water based drilling fluid. Properties: Depths Density Viscosity Plastic Viscosity Yield Point API FL pH 100-3000' 8.8—9.2 60- 100 10-30 30-25 <10 8.5-9.0 / System Formulation: 2% KCI/EZ MUD Product Concentration Water 0.905 bbl KCI 7 ppb (11K chlorides) KOH 0.2 ppb (9 pH) BARAZAN D+ 1.25 ppb (as required 30 YP) EZ MUD DP 0.75 ppb(initially 0.25 ppb) DEXTRID LT 1-2 ppb BAROID 41 as required for a 8.8 ppg ALDACIDE G 0.1 ppb BARACOR 700 1 ppb BARASCAV D 0.5 ppb (maintain per dilution rate) Production Hole Section (6-3/4" hole, 5-1/2" Liner to 2,772' MD) System Type: 8.8ppg 2%KC1/EZ MUD fresh water based drilling fluid. Properties: Depths Density Viscosity Plastic Yield Point API FL pH Viscosity - 1300' —2772' 8.8—9.2 60- 100 10-30 30-25 <10 8.5-9.5 System Formulation: 2% KCI/EZ MUD Product Concentration Water 0.905 bbl KCI 7 ppb (11K chlorides) KOH 0.2 ppb (9 pH) BARAZAN D+ 1.25 ppb (as required 30 YP) EZ MUD DP 0.75 ppb(initially 0.25 ppb) DEXTRID LT 1-2 ppb BAROID 41 as required for a 8.8 ppg ALDACIDE G 0.1 ppb BARACOR 700 1 ppb BARASCAV D 0.5 ppb (maintain per dilution rate) Completion (5-1/2" Tubing to 1100' MD) System Type: 3% KCI Brine Properties: Density- 8.3 ppg, Chlorides— 15,000 ppm 8/13/2012 Page 4 of 8 1 • Happy Valley B-15 Hilcorp Well Design Summary Enna Comp& Cementing Summary 10-3/4" Casing (Drilled into Place). Note: This string is for structural support of the wellhead and diverter system. Surface Hole Section (9-7/8" hole, 7-5/8" casing to 1300' MD/TVD) Cement volume based on annular volume + 50% open hole excess. Job will consist of lead & tail, TOC brought to surface. Estimated total volume is as follows: Estimated total volume is as follows: Section Formula Volume 10-3/4" csg x 7-5/8" csg 100' x .407 = 4.1 bbls annulus: 9-7/8" OH x 7-5/8" csg 1200' x 0.038 x 1.5 = 68.4 bbls annulus: 7-5/8" Shoe Track: 90' x .0459 = 4.1 bbls Total Volume (bbls): 4.1 + 68.4 + 4.1 = 76,6 bbis Slurry Information: Lead Slurry (130 sx) Tail Slurry (92 sx) System Extended Conventional Density 12 lb/gal 15.4 lb/gal Yield 2.44 ft3/sk 1.22 ft3/sk Mixed Water 14.349 gal/sk 5.507 gal/sk Mixed Fluid 14.469 gal/sk 5.507 gal/sk Total Volume 318 ft3 112 ft3 Code Description Concentration Code Description Concentration Type1 Cement 94 lb/sk WBWOB Type1 Cement 94 lb/sk WBWOB D110 Retarder 0.12 gal/sk VBWOC D046 Anti Foam 0.2% BWOB Additives D046 Anti Foam 0.2% BWOB D065 Dispersant 0.4% BWOB D079 Extender 2.0% BWOB 5002 CaCl2 0.2% BWOB D020 Extender 2.6% BWOB S002 CaCl2 0.2%BWOB 8/13/2012 Page 5 of 8 • Happy Valley B-15 Hiicorp Well Design Summary Elmo Cmnpam' Production Hole Section (6-3/4" hole, 5-1/2" liner to 2772' MD) Cement volume based on annular volume + 30% open hole excess. Slurry design is a high solids content CemCRETE system with a solids volume fraction of 53.4%. Estimated total volume is as follows: Section Formula Volume 7-5/8" csg x 3-1/2" DP: 200' x .034 bpf = 6.8 bbls 7-5/8" Csg x 5-1/2" Liner: 200' x .0165 bpf = 3.3 bbls 6-3/4" OH x 5-1/2" Liner: (2772' - 1300') x .0149 bpf x 1 .3 = 29 bbls 5-1/2" Shoe Track: 90' x .023 = 2.1 bbls f Total Volume (bbls): 6.8 + 3.3 + 29 + 2.1 = 41.2 bbls ✓ Slurry Information: LiteCRETE slurry(231 ft3/1.57= 147 sx) System LiteCRETE Density 12.5 lb/gal Yield 1.57 ft3/sk Mixed Water 5.476 gal/sk Mixed Fluid 5.476 gal/sk Total Volume 231 ft3 Code Description Concentration D046 Anti Foam 0.2% BWOC Additives D202 Dispersant 0.5% BWOC D400 Gas Control Agent 0.5%BWOC S002 CaCl2 0.1% BWOC 8/13/2012 Page 6 of 8 n • • Happy Valley B-15 Hilcorp Well Design Summary Emmy Conway Anticipated Formation Tops and Geohazards Zone Top MD/ND ft(RKB) Pore Pressure EMW Requirement psig (ppg RKB) Coal 1031 457 8.5 Coal 1183 524 8.5 Coal 1276 565 8.5 Sterling B 1502 665 8.5 Coal 1661 735 8.5 Sterling A 1667 738 8.5 Coal 1734 768 8.5 Coal 1933 856 8.5 TD 2000 886 8.5 V 8/13/2012 Page 7 of 8 • • Happy Valley B-15 Hilcorp Well Design Summary Enemy Cumpamr HV B-15 Drilling & Completion Summary 1 Prior to AWS Rig #1 mobilization to Pad "B": a. Prep & level pad for rig. b. Drill conductor into place at 100' below ground level. c. Install wellhead. d. Dig out and set cellar& mousehole. e. N/U diverter "T" and layout diverter line. 2 Mobilize rig to pad, N/U 1 1" diverter assy. Z y� 3 M/U 9-7/8" drilling assy and drill surface hole to 1300' MD. 4 Pull a wiper trip to surface, condition hole as necessary for running casing. 5 L/D Drilling BHA, R/U 7-5/8" casing handling equipment. 6 Run 7-5/8" surface casing to 1300' MD/TVD. a. Ensure XO to DP and FOSV made up and ready while running casing. b. Cement surface casing with lead and tail cement. Planned top of cement at surface. 7 N/U and test 1 1" x 3M BOP.-I h(Lr`` . " 8 M/U 6-3/4" drilling assy. TIH to TOC. Test casing to 1500 psi /30 min. Drill out shoe track and conduct FIT to 12 ppg EMW. 9 Drill 6-3/4" hole to 2772' MD. Take MWD surveys every 95'. 10 Pull wiper trip to shoe and clean up hole as necessary. TOH and stand back BHA. 11 R/U and run quad combo open hole logs (GR, CNL-LDT, Res, Sonic). 12 Make another wiper trip to TD. 13 TOH, R/U and run 5-1/2" 17# liner to 2772' (TOL at 1100'). a. Ensure XO to DP and FOSV made up and ready while running liner. 14 Cement prod casing with litecrete cement (12.5 ppg). Bring TOC to 1100' v MD/TVD. 15 TOH, P/U tapered workstring, TIH and clean out liner, polish PBR, Test casing to 1500 psi /30 min, displace wellbore to 3% KCI flitered completion fluid, TOH. 16 R/U and run 5-1/2" prod tubing & prod seal assy to 1100' MD/TVD. a. Ensure XO to DP and FOSV made up and ready while running casing. b. Spot pkr fluid behind prod tubing c. Test prod annulus to 1500 psi / 20 min. Test prod bore to 1500 psi /30 min. 17 LDDP, N/D BOP, Install & test tree. 18 RDMO AWS Rig #1. 19 Sterling A will be selectively perforated using E-line after the rig has moved off location. 8/13/2012 Page 8 of 8 \c;>_127: ::z.)6.)1! cc)1,1 v.).zr(\i‘tr,.. :N C • 1 i 0 , • 1,4'4 5 Ns. 4 -tti....,...._ ,,,,,,,,,\ Z7,NOIIDAS .'-o, .-2 ,,,,,,,,,,,,...„ .7,NOLLD3S /I / ill C, / /1 ' 00 / A. \ 0 / .0 ,,,,,, a.) c.,.. 0 /,/ \\\:\ 0 o Z 05/, :-,:•"" ' - G-) 1--7a 7 7#, 0 ci., > 0 ul .c5 0 -4 \ \\ \ 0_ cLi _-_i a_ / cs• ,- , 0 la , .,i ,ige -f,\\\ / \\.\ 0 . :: \ '').....,;:\ .,,,,\ 0\ / N \' \ 0 ›^"' U-I r•- C) r-- Li 0 . // / . •\ # 4* '' —J <:-,. ..,,,, 0 ././),CC %., . Ili \ \\.,,1:\ 0 L.L. -.,..), \ .\„\ \ .,\ \ < W < CN CN . / /:;-; ,,,,.. , 4., '1704 Ate - ' ''' ''' . 00- \ • .:-.7. i 0 Z Z C1.1 / -% Ctr'3 ./ --L'' \\ 1/4...„. \,‘„.7 \ ......„. 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' m 1:, ----- .-- ct&319 - v) oso „„-- ,..,,, .- 0 ,;„.., , -,,, ....4. cc ---- v) w 00, Cr- t 0 cr) s...,,-. Li. 00 0 ?it ./...0 . \ , . .14-‘---.•„, Et-- ' • 10..0\j 411:19 •-•' #i 4( 1%, k k i it Vtilk:siN • • S002S013W S002S013W Sec. 16 C061588 Sec. 15 Tr',:+t: 3 ss I f 1 ADL 84380 Trac : 2 1 I 44 I sQ02 913w ' C061589 B-14 ,, SOO2S013W Sec. 21 �v Sec: 22 - i B-15 ,; �'j Tract: 4 ' •r 1 r ! B-15 i Top I i Tract: 5 /B-15 BHL • C061590 Spacing Exception Exhibit A • Surface Hole Location • Bottom Hole Location S002S013W X Top of Production Horizon Sec. 28 L 3000 ft Radius From Well ——— Well Path _ 1 I Tracts —-� WellPadB 0 1,000 2,000 Deep Creek Unit Feet 1 Tract 4 - Well B-15 N Alaska State Plane Zone 4,NAD27 A August 2012 Hilcorp Alaska,LLC a • SOO2S013W SOO2S013W Sec. 16 C061 ti88 Sec. 15 I [ ; I c'. r 1 0 i ; \ --- / HV-10 BHL a AD L:c, . , , _( B-16 prop BHL ....• 7 N N __,-.-- ...."-.--'-'........-----'--"----\ \\ N.---.- e.HV-11 BHL s1o2s0i3W__ C061589 HV-12 '-- SOO2S013W! . '. H\7202 BHL Sec. 21 HV-13 v - '))1.---•-• . .e• ‘. Sec. 22 IB-15I t( ,. cy/1 N N \ 1 \ Tract: 4Y i ,„" : • • • NI •. ,N \ HV-12 BHL \, HV-08 pelt_ r --• ; \ • ip--7---1-_ N, / i ---r-- / I -------- / / i i .--...........__ i / i - --................. / / e' i ------ ' i ,./.. i B-15 . , , . . / i To,- , . / I HV1 3 BHL / • IV •B-i 15 BHL Tract: 5 • HV-09 B1-1L_ , ------ -COti590 HV-0_1 F3H-L- 0- . . , . . . Legend • Surface Hole Location - • Bottom Hole Location ..----__ SOO2S013W X Top of Production Horizon Sec. 28 ——— Well Paths / / / 3000 ft Radius From Well / 1 ME PA-Tracts 104.-#. Ammom / Well Pads I , Ili 0 1,000 2,000 Happy Valley Feet Pad - HV B-15 B Alaska State Plane Zone 4,NAD27 N August 9,2012 Hilcorp Alaska,LLC I Location: Cook Inlet,Alaska(Kenai Peninsula) Slot: HV B-15 Frail Field: South Kenai Gas Field Well: HV B-15 BAKER Facility: Happy Valley B Pad Wellbore: HV B-15 HUGHES Well Profile Data Design Comment MD(ft) Inc(°) Az(°) TVD(ft) Local N(ft) Local E(ft) DLS(°/100ft) VS(ft) Tie On 0.00 0.000 199.110 0.00 0.00 0.00 0.00 0.00 End of Tangent 300.00 0.000 199.110 300.00 0.00 0.00 0.00 0.00 End of Build(J) 1846.30 61.852 199.110 1562.99 -714.97 -247.72 4.00 756.67 End of Tangent(J) 277267 61.852 199.110 2000.00 -1486.76 -515.14 0.00 1573.47 sus, h=250M1 Easting(ft) -825 -600 -375 -250 -125 0 1255 11 1 1 1 1 Plot reference wellpath is HV B-15 Ver#1 True vertical depths are referenced to AWS Rig#1(RT) Grid System:NAD27/TM Alaska SP,Zone 4(5004),US feet — 0 Measured depths are referenced to AWS Rig#1(RD North Reference:True north HV:-15 AWS Rig#1(RT)to mean sea level:608 feet Scale:True distance mean sea level to Mud line(At Slot:HV B-15):0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by:ulricard on 07/Aug/2012 —-125 —-250 —-375 —-500 —-625 -300— Z I 0 ►1 _ IM —-750 g fi /11.7.411 up " 0— ie On —-875 300— End of Tangent —-1000 600— --1125 L 6- 900— 0 To 4.00°/100ft U —_1250 _ 1= 1200 N 7 H —-1375 1500— nd of Build(J) HV B-15 BHL Target --1500 1800— End of Tangent(J) --1625 HV 5-15 BHL Target 2100— 1 I I I I I I I 2400_ 00 0 300 600 900 1200 1500 1800 2100 Vertical Section(ft) $C1einch `600X Azimuth 199.11°with reference 0.00 N,0.00 E � N o C :) C � C OIOO C N ~ w � X 0 0 . • S O� O r ��° :1318111111"1:" pEOS0 0 �?,°rowZ� : :S8o : :08 1E- 1=1111111Filln Od �VL• 1111111111111 Qzz zzz zz d ��. •t0 V LN • -N V � i W.. - • Vi Lt..^c0p top . �OD N N• : O S //���� O•�: V C (V O 1� r Qf W 'O O S S� ��S S•. •a0D 0 O y N N N N N N N N��N� •N V tm0 • - (NO M W : y .�u(NDS • ��Sy NM • MM O N N • • • • • • N N N N N U u O 71- W""00- • M( M v� L 11111A01 HAEMEMEriti ❑ g o : -�m o n 8 �•S"00 : mNr • �u�ppj O •f0 l�•• • O�S E`-'rnrn: : rnS'irn : rnrn 1E1111111111114:m a> O d L d E ` " higaiLl du � oogS oc�pR N O^. SO. ._OSO: : O�d V �'"_'OO• M • f�r9 Njp NNN N N U7 7 U � • • Happy Valley II PROPOSED Well: HV B-15 i►ticorp Alaska,LEX 7/27/2012 - LEK Surface Location: CASING DETAIL SIZE WT GRADE CONN ID TOP BTM. CMT L 10-3/4" 40.5 A106 Weld Surf. 115 None A' ,, 7 5/8" 29.7 L-80 BTC 6.875 Surf. 1300 Surf i.,,,,' 5-1/2" 17 L-80 Vam STL 4.892 1100 2772 1100 4 Production Tubing Detail 5-1/2" I 17 I L-80 I Vam STL I I Surf. I 1100 I `' ,> > Surface Hole: 9-7/8"Hole,8.9 ppg WBM ,+ Cement to Surface h. :, Jewelry Detail '' No Depth ID Item 1 1100 JMZX Liner Hanger ILI rirtA Production Hole: 6-3/4"Hole,8.9 ppg WBM Cement to TOL @ 1100' *",- Anticipated Formation Tops &Geohazards k,: Formation Fluid TVD(FT) Est. Pressure PPG 7i4?':. Coal None 1,031' Normal 8.5 6,-;!� Coal None 1,183' Normal 8.5 Si. Coal None 1,276' Normal 8.5 Sterling B Wet 1,502' Normal 8.5 ,. Coal None 1,661' Normal 8.5 Sterling A Gas 1,667' Normal 8.5 A; Coal None 1,734' Normal 8.5 .:. Coal None 1,933' Normal 8.5 "x'"y Total Depth 1993 Normal 8.5 TD=2,772' MD TVD: 2000' • • Maximum Anticipated Surface Pressure Calculation Hilcorp Deep Creek(Happy Valley) B-15 Kenai Peninsula,Alaska Offset Information Well Drlg Date MW thru Sterling A Grad HV B-12 Oct-2007 9.2 0.478 HV B-13 Dec-2007 9.2 0.478 HV B-14 July-2012 8.9 0.463 Assumptions: 1. Based on offset drilling&well test data,the pore pressure gradient is predicted to be 0.443 psi/ft from surface to planned total depth of 2000'TVD. 2. Fracture gradients of two closest offsets (HV-12 & HV-13)were 0.78 (1040') &0.77 psi/ft(1170'). For HV B-15,0.77 psi/ft was used as the most likely fracture gradient. Fracture Pressure at 7-5/8" shoe considering a full column of gas from shoe to surface: For 7-5/8" shoe at 1220'TVD: 1220(ft)x 0.77(psi/ft)= 939 psi 939(psi) - [0.1(psi/ft)*1220(ft)]= 817 psi MASP from pore pressure Max pore pressure at TD (2000'TVD) MASP (Wellbore evacuated to gas column) 2000(ft) x 0.443(psi/ft)= 886 psi SIBHP-gas gradient to surface: 886(psi) - [0.1(psi/ft)*2000(ft)]= 686 psi Summary: 1. MASP while drilling 6-3/4" production hole is governed by SIBHP-gas gradient to surface. 2. MASP during production life is governed by SIBHP-gas gradient to surface. • • \2co; q_CC \,-6 / { Ei.2 a- ) § 1_\; 2 b2� N 0` JQ'\)( ) /E , > \7\)) / CD � //2� ] 0 CO \k$ 0 §§E 0) 0 0 2b ) 0a) 00= = !z—:, 12 //§)_ U. 000 % ! §G/]} \ ccni - §� £ `` ~ ` }IIM rE \ )\� � 4 co/ % mcO 0. 0—) (o ! e _ 0 R _ §_ I— X co e 2 co 7 CD / ° - - ))s s 0 co ycc3 = } / 00 . / 0• 00 2 2 ` 0 O ±» ; § \\ \ \ \ 0 0 F- ,-,- , cg \ \ „ f # ici _ --lo) [moe=a= _ \ CO• 22 \D>2--- I6 )Q a>0_>> § )/ 0`°°°°` / \ 0 , co 0 0 • • II Happy Valley B-15 8/7/2012 Happy Valley HV B#15 103/4X75/8X5% BOP Section • • fl Iii ill Ill lli Ill Hi iii 11"5M Z AI)„Ef 3 tf_$1ilt Shaffer LWS .,. *,. ;„ 11 5M ri ______-_-,—" "14,___—,wr 3 1/8 5M Choke and Kill Valves . III 111 F I11 _ II :".,y, ,,.. ( 1 1 .,,„ i ,- 4)!!-Ai' : , ••,,, „ , , .., _ ` ''ut l 141 III II. _ -„,. ., -.::-.• • ,I III ,j a li 11' 5M Shaffer LWS 1 .—,e _ e P i- i iJtttli 11”5M Is` l{f ttL =r--- —,,4-P I I ! rr Li ,V # �'% 11"5M Multibowl iNM - - G' :, Wellhead System a.- r a. t„ O kV?, _ )__14 .1. i ' i: 6 — • ' t ! 10%„ 7 5/8" • • U ai F- O L - N U °^ N u O N m O T Ciii N _`t 2 Ln a) imiliwi I ® - l' it} 0 ,r, U i�\ >:� []ir s Bo = = 1111111411• U (4.) > Nil-lie mii• ail a) _ c f''0 CO lint 0 -11111) ® �or ® - a) � LL i!111 VI1)VI t _a ' ZO LL rr-n �w•a• - = inQ D C7 L! i CU m r � Y O 2LL /_''�\ Q " > \ii • • HV B-15 Days Vs Depth 0 • • • 500 1000 • • • 4-,i 's00 2000 2500 • • • • • 3000 0 2 4 6 8 10 12 14 16 18 20 Days • • Formation Integrity Test (FIT) and Leak-Off Test (LOT) Procedures Note that the terms used in the procedures and the spreadsheet of FIT/LOT results are defined as follows: • Formation Integrity Test (FIT) - Formation is tested to a pre-determined equivalent mud weight. • Leak-Off Test (LOT) - Pressure is exerted against the formation until fluid begins to discernibly pump away. Pressure at which this first occurs is the leak-off point. • LOT Limit- 16.0 ppg EMW for all surface casing shoe tests; determined from previous experience with formation breakdown problems by attempting higher leak-offs. • Open Hole LOTs (OH LOTs)- Leak-off tests performed with open hole from the casing shoe to some point above the target reservoir. Generally done when leak-off is required but could not be achieved just below the casing shoe; or where weaker formations are suspected above the target reservoir but below the casing shoe, and assurance is required of being able to achieve estimated mud weight. Procedure for FIT: 1. Drill 20' of new hole below the casing 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. drillpipe 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. • • Happy Valley Well B-15 Hilcorp Drilling Waste Plan Enayy Company Drilling Waste Plan Both the 9-7/8" hole and the 6-3/4" hole section will be drilled with a water based drilling fluid. Cuttings will be hauled from the "B" pad to Emerald Technologies, Inc where they will be dried & inerted. Cuttings will be transported to Emerald as they are generated. There is no plan to store cuttings at the drilling site. Cuttings meeting regulatory requirements will be hauled to a land fill at the discretion of Emerald Technologies, Inc after appropriate drying & inerting. In the event Emerald Technologies cannot handle drilling waste from HV B-15, Aimm Technology, Inc will be utilized in the same capacity. 8/13/2012 Page 1 of 1 • • II Happy Valley HV B-l5 8/7/2012 11,1,-..1,1.14.42.1..11. Happy Valley HV B#15 103/4X75/8X51/2 Diverter Section 1 0 0 it in,frn11_ 1 ....- Annular Annular Preventer Shaffer 11"5M It ifh 11"5M X 13 5/8 5M Knife Gate Crossover spool `.,^ _:;__ I111 . 11 1 II 4/ (� i MM Diverter Tee,13 5/8 5M FE X FE w/12"ANSI 150 outlet r, t i -_1I1.11 11"5M X 13 5/8 5M Crossover spool a+� --. �! _ '1 i t.,, 11"5M Multibowl 1 I 11................., ei,to.•111 1 �« �1 C' _).E., •. ! ..... Wellhead System � I�� - E lit :!`:::‘.;.,, I �t „1 I a� 103 " • ILCORP ALASKA, LLC HAPPY VALLEY HO-28451 v ADAPTER, EN ) 11 5M X 5-1/8 5M Iii. IE :1........sign 7 DBL D I!Mq i :1 CIP ®� 0 . . 11 5M f!1 _ . CASING HANGER, II SMB-22 PORTED 11 X 5-1/2 W/5 H BPV PREP J - (T-0,,,,,--- I . � � CI3 lo ail I''' il I . . . c, i 01 .„.„-cz. C� i II 111 3M _5 \-- 2-1/16 5M CASING HANGER, SMB-22 p 11 X 7-5/8 \ W/SEAL ASSEMBLY :77(----lkiC 1.-)0,--. : --.._ C ( . 0j� : 3 _ . • dello .r <__..—C oge2-1/16 5M 10-3/4 CASING - 7-5/8 CASING - -,--- 5-1/2 CASING—... Z_o SEABOLI RD 5,000 PSI WELLHEAD ASSEMBLY 10-3/4 X 7-5/8 X 5-1/2 RESTRICTED CONFIDENTIAL DOCUMENT x" ,,� NIS DRARNG AND ALL INPORIIATI.SIGN NERC.ARE DE RD RT 1-5.5 11 APR12 REV EXOWSTE PROPERTY OP SEABOARD INTERNATIONAL INC AND ARE SUBNTIED ORA WMECOCIIAL BASS OLY. TE RECIPIENT AGREES CECNEU TKC I DRAWING NO. NOT TO REPRODUCE TIC DRAPING.TO RETURN IT UPDR REQUEST.AND T s T THAT NO DISCLOSURE OF E CRAW.OR THE BFDRYATG!SRONTI P-14840 HERE.RLL E TN MADE TO A RO PARTY NQUWTI.TNT PRIOR WTI. CONSENT OP SEABOARD NTFRUTONAL INC. Br. i • 11 Happy Valley HV B-15 08/07/2012 II,I,,,11o4.4 I I I Happy Valley 10 3/4 X 7 5/8 X 5 1/2 ° Tree assy, 5 1/8 5M X 3 1/8 5M, DD trim, it au i w/9.5 Acme Otis Quick ; Union top \_--- 1 it I **' 1\ O /� r ;i ar 4 i \5007 z 4 t G -Lila, / 5'/2 Mandrel hanger needs to have 5"type H BPV profile Casing spool, MBS-L, i„1111r-, ill 1•11111111141., 11 5M stdd X 11 5M LI!i IP, hi , t Valve,WKM-M,2 1/16 5M stdd,w/2-2 1/16 5M SSO, N type lockdown 11 . 'I I 9I 77, FE, HWO,AA trim pins — ft'MIS i ' i 1 5 Casing head, MBS-lower, _�' ifa Valve,WKM-M,2"LP, 11 5M FE X 10'/4 SOWi� n 1� oo a, L ;� HWO,AA trim w/2-2" LPO lil Immo zr6._iii . 10 3/4" 7 5/8" 5'/z' • 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 vl l PTD# 2 17 Z-- Development Service Exploratory Stratigraphic Test Non-Conventional Well FIELD: L -' r POOL: Check Box for Appropriate Letter I Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. ,API No. 50- - - API number are between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE 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 name ( PH) and API number (50- - ) from records, data and logs acquired for well SPACING The permit is approved-subject,to full compliance with 20 AAC EXCEPTION 25.055. Approve o produce/ 'n'ect is contingent upon issuance of / anservatio . •- approving a spacing exception. � y2 /71. t i assumes the liability of any protest to'the spacing exceptn that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non-Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev:9/09/2011 • 0 Co N O ° a) O- N N C o O op a N C 0 y. Q a) E va m >: C: AlOI c o i �� � 7. 7 > _c ° N w E E w (A c. O. Q a) ° a). 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To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically • organize this category of information. Happy Valley B-15 Deep Creek Field Kenai Borough, Alaska October 5 - 17, 2012 Provided by: Approved by: David Buthman Compiled by: John Lundy Steve Pike Allen Odegaard Distribution Date: October 31, 2012 TD Date: October 14, 2012 Happy Valley B-15 2 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT & CREW................................................................................................3 1.1 Equipment Summary......................................................................................................................3 1.2 Crew................................................................................................................................................3 2 GENERAL WELL DETAILS...................................................................................................................4 2.1 Well Objectives...............................................................................................................................4 2.2 Well Resume ..................................................................................................................................5 2.3 Hole Data........................................................................................................................................5 3 GEOLOGICAL DATA.............................................................................................................................6 3.1 FORMATION / ZONE MARKER TOPS..........................................................................................6 3.2 ZONE SUMMARIES.......................................................................................................................6 3.3 Lithologic Details...........................................................................................................................10 3.4 Sampling Program........................................................................................................................15 3.5 Show Reports ...............................................................................................................................16 4 DRILLING DATA..................................................................................................................................29 4.1 Daily Activity Summary.................................................................................................................29 4.2 Surveys.........................................................................................................................................31 4.3 Bit Record.....................................................................................................................................32 4.4 Mud Record ..................................................................................................................................33 4.5 Drilling Progress Chart..................................................................................................................34 5 DAILY DRILLING REPORTS...............................................................................................................35 Enclosures 2” = 100’ Formation Log MD/TVD 2” = 100’ LWD Combo Log MD/TVD 2” = 100’ Drilling Dynamics Log MD/TVD 2” = 100’ Gas Ratio Log MD/TVD Happy Valley B-15 3 1 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary Parameter Equipment Type /Position Total Downtime Comments Computer – Driller’s Monitor Azonics / Rig floor 0 hours Computer – Company Man RigWatch Remote (All-In-1) 0 hours Computer – Directional Driller WITS from RigWatch 0 hours Computer – Tool Pusher RigWatch Remote (All-In-1) 0 hours Computer – Mud Engineer RigWatch Remote (All-In-1) 0 hours Computers – Mudloggers (4) RigWatch Master, DML, RigWatch Remote, WITS Feed (all HP Compaq) 0 hours Block height / bit depth (none) N/A MWD depth tracking used through 792’; subsequent depths called out by driller Ditch gas QGM gas trap; flame ionization total gas & chromatography. 0 hours gas data manually lagged Hook Load / Weight on Bit Deadline strain gauge N/A Mud Flow In Derived from pump rates and output 0 hours Mud Flow Out Flow paddle / flow line 0 hours Pit Volumes, Pit Gain/Loss Vega Sonic Volume Sensors (5) 0 hours Pump Pressure Pressure transducer / standpipe 0 hours Pump Stroke Counters (2) Proximity sensors 0 hours Data captured through 792’; no drilling data logged upon discontinuation of depth tracking. Rate of Penetration (ROP manually calculated) N/A RPM (none) N/A Torque (none) N/A 1.2 Crew Mud Logging Unit Type: Arctic Mud Logging Unit Number: ML004 Mud Loggers Years *1 Days *2 Sample Catchers Years *1 Days *2 Technician Days *2 John Lundy 21 8 Omar Hinostroza 5 15 Allen Williams 4 Allen Odegaard 15 17 Dave Aldridge 1 15 Howard Lamp 4 Steve Pike 10 10 *1 Years experience as mudlogger *2 Days at wellsite between rig up and rig down of logging unit. Happy Valley B-15 4 2 GENERAL WELL DETAILS 2.1 Well Objectives Integrated subsurface data indicates an as-yet untested 530 acre closure at the Sterling Sandstone level at the Happy Valley Field. Two wells drilled on the structural crest, Happy Valley 12 and Happy Valley 13, exhibit good gas shows, high resistivity, Density-Neutron cross-over. A pronounced sonic dipole anomaly in the Sterling A is exhibited in a special study of the Happy Valley 12 well. Happy Valley B-15 is a development gas well planned to be drilled directionally to 3,100’ MD / 2,582’ TVD. Maximum inclination is 41 degrees. Pay intervals are the Sterling A (1,675’ TVD to 1,810’ TVD), and the Upper Beluga (2,299’ TVD to 2,311’ TVD). Happy Valley B-15 5 2.2 Well Resume Operator: Hilcorp Alaska, LLC Well Name: Happy Valley B-15 Field: Deep Creek County: Kenai Borough State: Alaska Company Representatives: Rance Pederson Location: Surface Coordinates 2972’ FSL, 322’ FEL Sec. 21 T2S R13W SM Ground Elevation 593.00’ AMSL Rotary Table Elevation 607.67’ AMSL Classification: Exploration API #: 50-231-20039-00-00 Permit #: 212-132 Rig Name /Type: Aurora Rig 1 Spud Date October 3, 2012 Total Depth Date: October 14, 2012 Total Depth 3,100’MD / 2,583’ TVD Primary Targets Sterling A Sands, Upper Beluga sands Primary Target Depths 1656’ MD / 2037’ TVD Total Depth Formation: 3,100’ MD / 2583.48’ TVD Completion Status: Run 5-1/2” Liner LWD-MWD Services. (none) Directional Drilling Schlumberger Wireline Logging Services Halliburton Drilling Fluids Service Halliburton CANRIG Logging Geologists: John Lundy, Allen Odegaard, Steve Pike CANRIG Sample Catchers: Omar Hinostroza, Dave Aldridge 2.3 Hole Data Maximum Depth Shoe Depth Hole Section MD (ft) SSTVD (ft) TD Formation Mud Weight (ppg) Dev. (oinc) Casing Diam. MD (ft) SSTVD (ft) LOT (ppg) Conductor Recent 0 10-3/4” 98’ -509.67’ N/A 9-7/8” 1,173’ -565.33’ Sterling 9.10 35.99 7-5/8” 1,139’ -565.33’ — 6-3/4” 3,100’ -2492.33’ Beluga 8.90 42.15 5-1/2” 3,056’ -2,482.33’ N/A Happy Valley B-15 6 3 GEOLOGICAL DATA 3.1 FORMATION / ZONE MARKER TOPS ACTUAL FORMATION / MARKER MD (ft) TVD (ft) Coal 1,275 1,186 Coal 1,369 1,279 Sterling B 1,460 1,327 Coal 1,843 1,641 Sterling A 1,899 1,675 Base Sterling A 2,076 1,810 Upper Beluga 2,721 2,299 Total Depth 3,100 2,583 3.2 ZONE SUMMARIES Coal 1,275’ MD, 1,186’ TVD Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 62 12 29 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 1327’ 62 12053 0 0 0 0 0 0 This formation is comprised of mostly of mostly translucent to clear, white, light gray with some medium gray, black, dark gray hues; predominantly quartz grain sand matrix with abundant dark colored lithic fragments; upper very fine to upper medium grain sand; very well rounded to sub-rounded with some sub-angular to angular; moderate to high sphericity; moderate to thin beds of tuffaceous sandstone with thin lenses of very fine grain loose un-cemented sand with thin coals interbedded throughout; no visible sample fluorescence was observed; no other oil indicators were observed. Happy Valley B-15 7 Coal 1,369’ MD, 1,279’ TVD Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 68 13 38 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 1424’ 68 13267 0 0 0 0 0 0 This formation is composed of black to very dark brownish black; sub-bituminous; brittle blocky to tabular and angular irregular fragments; clean conchoidal fracture on harder blocky fragments; visible cleat; occurs as moderate beds with thinner tuffaceous siltstone and tuffaceous claystone interbeds; very slight visible out- gassing when fresh dissipates rapidly. Sterling B 1,460’ MD, 1,327’ TVD Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 40.4 142 3 22 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 1628’ 142 28020 0 0 0 0 0 0 This formation is composed of white to light gray with some translucent to clear, with some dark gray, black and medium dark gray hues; mostly quartz grain sand matrix with abundant dark colored lithic fragments throughout; mostly upper fine to upper medium grain sand with some sparsely lower coarse grains throughout; very well rounded with some sub-rounded with some very angular and sub-angular; moderate to high sphericity; mostly very thin lenses of slightly calcareously cemented sandstone with fine grained mostly loose quartz sand and calcareous tuffaceous siltstone and tuffaceous claystone; no visible sample fluorescence was observed; no other oil indicators were observed. Happy Valley B-15 8 Coal 1,843’ MD, 1,641’ TVD Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 144 12 41 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 1861’ 144 28688 0 0 0 0 0 0 This section is composed of black to very dark brownish black; sub-bituminous; brittle blocky to tabular and angular irregular fragments; clean conchoidal fracture on harder blocky fragments; occurs as moderate beds with thinner tuffaceous siltstone and tuffaceous claystone inter-bedding. Sterling A 1,899’ MD, 1,675’ TVD Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 249 14 56 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 2047’ 249 49604 0 0 0 0 0 0 This formation is comprised of light gray to dark gray with some medium light gray; pasty to mushy; very crunchy to somewhat brittle; irregular fracture; amorphous cutting habit; very earthy to somewhat dull; mostly silty to somewhat clayey with some gritty in places; very thin interbedded with thin lenses of loose quartz sand and occasional thin coal; no visible sample fluorescence observed; no other petroleum indicators. Happy Valley B-15 9 Upper Beluga 2,721’ MD, 2,299’ TVD Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 54 7 25 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 2827’ 54 9284 31 0 0 0 0 0 This section is made up of white to light gray with some translucent to clear, with some dark gray, black and medium dark gray hues; mostly quartz grain sand matrix with abundant dark colored lithic fragments throughout; mostly upper fine to upper medium grain sand with some sparsely lower coarse grains throughout; very well rounded with some subrounded with some very angular and subangular; moderate to high sphericity; mostly very thin lenses of slightly calcareously cemented sandstone with fine grained mostly loose quartz sand and calcareous tuffaceous siltstone and tuffaceous claystone; no visible sample fluorescence was observed; no other oil indicators were observed. Happy Valley B-15 10 3.3 Lithologic Details Sand/Conglomeratic Sand (98’ – 190’) = medium dark to medium gray; unconsolidated; poorly sorted; angular to sub- angular and very slightly rounded; medium lower to medium upper, coarse lower and granule; scattered small pebble and pebble fragments; some pebble is conglomeratic, moderately indurated rounded and angular grain components; consists primarily of dark to medium gray lithic/mineral grains with variable amounts of translucent white to smoky and clear colorless quartz/volcanics; trace rust brown and greenish gray grains; trace to common light brownish white claystone/clay interbeds. Sand/Conglomeratic Sand (190’ – 300’) = medium dark to medium gray; unconsolidated; poorly sorted; angular to sub- angular and very slightly rounded; medium lower to medium upper, coarse and granule; scattered to common small pebble and pebble fragments; composed primarily of dark to medium gray lithic and mineral fragments; common to abundant transparent white to smoky and clear colorless quartz/ volcanics; common brownish gray lithics, rust brown and dark olive brown fragments; trace greenish gray lithics, mottled brown and orange jasper/volcanics; slight trace very light brownish gray clay residue on some fragments; Coal (300’ – 330’) = dark gray-black to black and brownish black; sub-bituminous to lignitic; brittle; hackly; trace poorly developed conchoidal fracture on some harder fragments; interbedded with tuffaceous silt/claystone and associated sands or may be occurring as clastics in conglomerate. Sand/Conglomeratic Sand (330’ – 420’) = medium dark to medium gray; unconsolidated; poorly sorted; angular to sub- angular and very slightly rounded; medium lower to fine upper, medium lower coarse and granule with scattered pebble and pebble fragments becoming more conglomeratic with increasing depth; primarily dark to medium gray lithic and mineral fragments; common to abundant transparent white to smoky and clear colorless quartz/ volcanics; common brownish gray lithics, rust brown and dark olive brown fragments; trace greenish gray lithics, mottled brown and orange jasper/volcanics; slight trace very light brownish gray clay residue on some fragments; inter- bedded with thin to moderate coals and tuffaceous silt/claystones; no oil indicators. Tuffaceous Silt/Claystone (420’ – 500’) = medium light to medium gray with a slight brownish secondary hue; soft to slightly firm; hydrophilic; expansive when wet; sandy to silty; slight sparkly appearance due to included volcanics; occurs as thin to moderate interbeds in associated sand and particularly with coals; non to trace calcareous. Coal (500’ – 530’) = dark gray-black to black and brownish black; sub-bituminous brittle; splintery to blocky fragments; poorly developed conchoidal fracture on some harder fragments; visible cleat on some fractures; trace growth ring appearance on some fragments; interbedded with tuffaceous claystone/siltstone and occasional sands. Tuffaceous Silt/Claystone (500’ – 600’) = medium light to medium gray with a slight brownish secondary hue; soft to slightly firm; clumpy eroded globular fragments; slight micro-sparkly appearance; slightly cohesive; non to slightly adhesive; becoming less hydrophilic with increasing depth; occurs as moderate to thin beds interbedded with thinner coals and conglomeratic to clean moderately sorted sand; non to trace calcareous; no oil indicators. Sand/Conglomeratic Sand (600’ – 720’) = medium dark to med gray; unconsolidated; poorly sorted; angular to sub-angular and very slightly rounded; medium lower to fine upper, scattered medium lower coarse and granules with pebble and pebble fragments; primarily dark to medium gray lithic and mineral fragments with common to abundant transparent white to smoky and clear colorless quartz with volcanics; common brownish gray lithics, rust brown and dark olive brown fragments; trace greenish gray lithics, mottled brown and orange jasper/volcanics; trace to common very light brownish gray clay residue on some fragments; interbedded with thin to moderate coals and tuffaceous silt and claystones; no oil indicators. Happy Valley B-15 11 Tuffaceous Silt/Claystone (720’ – 780’) = medium light to medium gray with a slight brownish secondary hue; soft to slightly firm; clumpy eroded globular fragments; slight micro-sparkly appearance; slightly cohesive; non to slightly adhesive; occurs as moderate to thin beds interbedded with thinner coals and conglomeratic to clean moderately sorted sand; non to trace calcareous; no oil indicators. Tuffaceous Clay/Siltstone (780’ – 870’) = medium light to medium gray with a slight brownish secondary hue; soft to slightly firm; clumpy eroded globular fragments; silty material has a slight micro-sparkly appearance; slightly to moderately cohesive; slightly adhesive; trace thin carbonaceous micro-lamina and very fine inclusions in siltstone; occurs as moderate to thin beds with thinner sand/conglomeratic sand and coal interbeds; sand material is becoming finer, with better sorting as depth increases with a trace of very fine grain silty tuffaceous sandstone; slightly to very slightly calcareous; no oil indicators. Tuffaceous Silt/Claystone (940’ – 990’) = medium light to medium gray with a slight brownish secondary hue; soft to slightly firm; clumpy eroded globular cuttings habit; slight micro-sparkly appearance; slightly cohesive; non to slightly adhesive; occurs as moderate to thin beds interbedded with thinner coals and conglomeratic to clean moderately sorted sand; non to trace calcareous; no oil indicators. Sand/Conglomeratic Sand (990’ – 1050’) = medium dark to med gray; unconsolidated; poorly sorted; angular to sub-angular and very slightly rounded; medium lower to fine upper, scattered medium lower coarse and granules, occasional pebbles and pebble fragments; primarily dark to medium gray lithic and mineral fragments with common to abundant transparent white to smoky and clear colorless quartz/volcanics; non to trace calcareous; no oil indicators. Coal (1080’ – 1110’) = black to very dark brownish black; sub-bituminous; brittle blocky to tabular and angular irregular fragments; clean conchoidal fracture on harder blocky fragments; visible cleat; occurs as moderate beds with thinner tuffaceous siltstone and tuffaceous claystone interbeds; very slight visible out-gassing when fresh dissipates rapidly. Sandstone/Tuffaceous Sandstone (1110’ – 1170’) = medium light to medium gray; firm to very firm and soft; moderately sorted; medium lower to fine lower and very fine grain; angular to sub-angular; primarily translucent to colorless quartz/volcanics; abundant angular splintery volcanics in the finer grain material; trace dark gray to black mafic mineral/lithics; very silty overall; low to trace visible porosity; matrix sup- ported in light gray-white ash/clay; interbedded with dark to medium gray tuffaceous sandy siltstone and occasional thin coals; non to trace calcareous; no oil indicators. Tuffaceous Siltstone (1210’ – 1250’) = dark gray to medium gray with some light gray; pasty to mushy; very crumbly to somewhat brittle; irregular fracture; amorphous cutting habit; very dull to earthy luster; predominantly silty with some gritty in places; no sample fluorescence was observed. Sand/Sandstone (1255’ – 1335’) mostly translucent to clear, white, light gray with some medium gray, black, dark gray hues; predominantly quartz grain sand matrix with abundant dark colored lithic fragments; upper very fine to upper medium grain sand; very well rounded to sub-rounded with some sub-angular to angular; moderate to high sphericity; moderate to thin beds of tuffaceous sandstone with thin lenses of very fine grain loose un-cemented sand with thin coals interbedded throughout; no visible sample fluorescence was observed; no other oil indicators were observed. Happy Valley B-15 12 Sandstone/Sand (1340’ – 1435’) = white to light gray with some translucent to clear, with some dark gray, black and medium dark gray hues; mostly quartz grain sand matrix with abundant dark colored lithic fragments throughout; mostly upper fine to upper medium grain sand with some sparsely lower coarse grains throughout; very well rounded with some sub-rounded with some very angular and sub-angular; moderate to high sphericity; mostly very thin lenses of slightly calcareously cemented sandstone with fine grained mostly loose quartz sand and calcareous tuffaceous siltstone and tuffaceous claystone; no visible sample fluorescence was observed; no other oil indicators were observed. Sand/Sandstone (1440’ – 1515’) = mostly translucent to clear with some light gray, white, dark gray, and black hues; predominantly quartz grain sand with abundant dark colored lithic fragments throughout; lower fine to upper medium grain sand; moderate to well sorted throughout; well rounded to sub-rounded with some sub- angular to very angular; moderate to high sphericity; mostly thin bedded with occasional thin coals; sandstone has a siliceous cement; no visible sample fluorescence was observed; no other petroleum indicators were observed. Tuffaceous Siltstone (1520’ – 1570’) = medium gray to dark gray with some light gray; pasty to clumpy; crunchy to somewhat brittle; irregular fracture; amorphous cutting habit; very dull to earthy luster; predominantly silty with some gritty in places; no visible sample fluorescence was observed; no other petroleum indicators were observed. sand/sandstone (1575’ – 1655’) = clear to translucent with some white, light gray to dark gray, light greenish gray, and black hues; predominantly quartz grain sand matrix; lower fine to upper medium grain sand; moderate to well sorted; very angular to sub-angular with some very well rounded to sub-rounded; moderate to high sphericity; very thin sand and sandstone lenses interbedded with thin coal seams and tuffaceous siltstone and tuffaceous claystones; no visible sample fluorescence was observed; no other petroleum indicators Tuffaceous Siltstone (1655’ – 1715’) = light gray to dark gray with some medium light gray; pasty to mushy; very crunchy to somewhat brittle; irregular fracture; amorphous cutting habit; very earthy to somewhat dull; mostly silty to somewhat clayey with some gritty in places; very thin interbedded with thin lenses of loose quartz sand and occasional thin coal; no visible sample fluorescence was observed; no other petroleum indicators were observed. Sand/Sandstone (1720’ – 1805’) = mostly translucent to clear, with some white, light gray to dark gray, and black hues; predominantly quartz grain sand matrix with abundant dark colored lithic fragments throughout; upper fine to upper medium grain sand; well sorted throughout; very well rounded to sub-rounded with some very angular to sub-angular; moderate to high sphericity; thinner beds of fine grain loose sand interbedded with thicker beds of tuffaceous siltstones and tuffaceous claystones, with very thin beds of coal; no visible sample fluorescence was observed; no other oil indicators were observed. Coal (1850’ – 1870’) = black to very dark brownish black; sub-bituminous; brittle blocky to tabular and angular irregular fragments; clean conchoidal fracture on harder blocky fragments; occurs as moderate beds with thinner tuffaceous siltstone and tuffaceous claystone inter-bedding. Tuffaceous Siltstone (1870’ – 1950’) = light gray to dark gray with some medium light gray; pasty to mushy; very crunchy to somewhat brittle; irregular fracture; amorphous cutting habit; very earthy to somewhat dull; mostly silty to somewhat clayey with some gritty in places; very thin interbedded with thin lenses of loose quartz sand and occasional thin coal; no visible sample fluorescence observed; no other petroleum indicators. Happy Valley B-15 13 Sand/Sandstone (1950’ – 2070’) = mostly translucent to clear, with some white, light gray to dark gray, and black hues; predominantly quartz grain sand matrix with abundant dark colored lithic fragments throughout; upper fine to upper medium grain sand; well sorted very well rounded, occasionally ranges to sub-rounded with some very angular to sub-angular; moderate to high sphericity; thinner beds of fine grained loose sand interbedded with thicker beds of tuffaceous siltstones and tuffaceous claystones, with very thin beds of coal; no visible sample fluorescence; no other oil indicators. Tuffaceous Siltstone (2070’ – 2140’) = light gray to dark gray with some medium light gray; very pasty to mushy; crunchy to somewhat brittle; irregular fracture; amorphous cutting habit; very earthy to somewhat dull; mostly silty to somewhat clayey with some gritty in places; very thin interbedded with thin lenses of loose quartz sand and occasional thin beds of coal; no visible sample fluorescence; no other petroleum indicators. Sand/Sandstone (2140’ – 2245’) = mostly translucent to clear, with some white, light gray to dark gray, and black hues; predominantly quartz grain sand matrix with abundant dark colored lithic fragments throughout; upper fine to upper medium grain sand; well sorted; very well rounded, occasionally ranges to sub-rounded with some very angular to sub angular; moderate to high sphericity; thinner beds of fine grained loose sand interbedded with beds of tuffaceous siltstones and tuffaceous claystones, with occasional very thin beds of coal; no visible sample fluorescence; no other hydrocarbon indicators. Sand (2230’ – 2305’) = predominantly translucent to clear, with some white, light gray, dark gray and black hues; mostly quartz sand matrix with abundant dark colored lithic fragments; upper fine to upper medium grain sand; well sorted throughout; very well rounded to sub-rounded, with some sub-angular to very well angular; moderate sphericity; thicker beds of loose un-cemented quartz sand interbedded with thinner beds of tuffaceous siltstones and tuffaceous claystones; no visible sample fluorescence was observed. Tuffaceous Claystone (2310’ – 2360’) = medium gray to dark gray with some light gray; clumpy to pasty; crumbly to somewhat brittle; irregular fracture; amorphous cutting habit; very dull to earthy luster; predominantly silty with some gritty in places; no visible sample fluorescence was observed; no other petroleum indicators were observed. Sand (2365’ – 2450’) = translucent to clear, with some light to dark gray and brownish gray, white and black hues; predominantly quartz grain sand matrix with abundant dark colored lithic fragments throughout the sample; fine to upper medium grain sand; well sorted throughout; very well rounded to sub-rounded with some very angular to sub-angular; moderate to high sphericity; thinner beds of fine grain loose sand interbedded with thicker beds of tuffaceous siltstones and tuffaceous claystones, no visible sample fluorescence was observed; no other petroleum indicators were observed. Tuffaceous Siltstone (2455’ – 2505’) = light to medium gray with some very dark gray; pasty to clumpy; crunchy to somewhat brittle; irregular fracture; amorphous cutting habit; very dull to earthy luster; predominantly silty with some gritty in places; no visible sample fluorescence was observed; no other petroleum indicators were observed. Tuffaceous Claystone (2520’ – 2570’) = medium gray to dark gray with some light gray; clumpy to pasty; crumbly to somewhat brittle; irregular fracture; amorphous cutting habit; very dull to earthy luster; predominantly silty, often gritty in places; no visible; sample fluorescence was observed; no other petroleum indicators. Happy Valley B-15 14 Sand (2570’ – 2650’) = translucent to clear, with some light to dark gray and brownish gray, white and black hues; predominantly quartz grain sand matrix with abundant dark colored lithic fragments throughout the sample; fine to upper medium grain sand; well sorted throughout; very well rounded to sub-rounded with some sub-angular to angular; moderate to high sphericity, trace poor sphericity; thinner beds of fine grain loose sand interbedded with thicker beds of tuffaceous siltstones and tuffaceous claystones, no visible sample fluorescence; no other hydrocarbon indicators. Coal (2690’ – 2730’) = black to very dark brownish black; sub-bituminous; brittle blocky to tabular and angular irregular fragments; clean conchoidal fracture on harder blocky fragments; occurs as moderate beds interbedded with tuffaceous siltstones and tuffaceous claystones. Tuffaceous Siltstone (2650’ – 2750’) = light to medium gray with some very dark gray; pasty to clumpy; crunchy to somewhat brittle; irregular fracture; amorphous cutting habit; very dull to earthy luster; predominantly silty ranging to very gritty in places; no visible sample fluorescence; no other petroleum indicators. Tuffaceous Claystone (2770’ – 2815’) = medium gray to dark gray with some light gray; clumpy to pasty; crumbly to somewhat brittle; irregular fracture; amorphous cutting habit; very dull to earthy luster; predominantly silty, often gritty in places; no visible; sample fluorescence was observed; no other petroleum indicators. Sand (2820’ – 2915’) = white to light gray with some translucent to clear, with some dark gray, black and medium dark gray hues; mostly quartz grain sand matrix with abundant dark colored lithic fragments throughout; mostly upper fine to upper medium grain sand with some sparsely lower coarse grains throughout; very well rounded with some subrounded with some very angular and subangular; moderate to high sphericity; mostly very thin lenses of slightly calcareously cemented sandstone with fine grained mostly loose quartz sand and calcareous tuffaceous siltstone and tuffaceous claystone; no visible sample fluorescence was observed; no other oil indicators were observed. Tuffaceous Siltstone (2920’ – 2970’) = medium gray to dark gray with some light gray; mushy to lumpy; crumbly to somewhat brittle; irregular fracture; amorphous cutting habit; very dull to earthy luster; predominantly silty with some gritty in places; no visible sample fluorescence was observed; no other petroleum indicators were observed. Sand (2975’ – 3055’) = translucent to clear with some light gray, white and black hues; predominantly quartz grain sand matrix with abundant dark colored lithic fragments throughout the sample; upper fine grain to upper medium grain sand with occasional very fine sand; well sorted; very well rounded to subrounded with some subangular; high sphericity; thinner beds of fine grain loose sand interbedded with thicker beds of tuffaceous siltstones and tuffaceous claystones, no visible sample fluorescence was observed; no other petroleum indicators were observed. Happy Valley B-15 15 3.4 Sampling Program BOXED WASHED AND DRIED SAMPLES 3 Sets Total: 3 Packages of 2 Boxes Each Operator: Hilcorp Alaska, LLC Well Name: Happy Valley B-15 Field: Deep Creek County: Kenai Borough State: Alaska Company Representatives: Rance Pederson, Rodney McCoy Location: 2972' FNL, 322' FEL, Sec 21, T2S, R13W, SM Classification: Exploration API #: 50-231-20039-00-00 Permit #: 212-132 Rig Name /Type: Aurora Rig 1 Total Depth 3100’ Total Depth Formation: Sterling A Total Depth Date: October 14, 2012 Logging Geologists: John Lundy, Allen Odegaard, Steve Pike Sample Catchers: Omar Hinostroza, Dave Aldridge Sets Type and Purpose Interval Frequency Distribution 3 each Washed and Dried Reference Samples 97’ – 1,173’ 1,173’ – 3,100’ 30’ Interval 20’ Interval Debra Oudean Hilcorp Alaska, LLC 3800 Centerpoint Drive Suite 1000 Anchorage, AK 99508 Note: All sample sets (3 total) presented to Rance Pederson for release to rig expeditor for shipment. Happy Valley B-15 16 3.5 Show Reports Happy Valley B-15 29 4 DRILLING DATA 4.1 Daily Activity Summary Oct 3 012 Rig up Mudlogging Unit #04 & prepare for drilling operations. Oct 4 012 Drill/slide ahead from 98’ to 451'; rig service/circulate. Oct 5 2012 Drill/slide from 451' to 455'; mud pump #1 liner replaced; drill/slide from 455' to 473'; back ream from 473' to 454'; drill/slide from 473' to 514'; work pipe, clean hole, take survey; set kelly back and pull out of hole (short trip); run in hole, set kelly to drill; back ream from 514' to 484'; drill/slide from 514' to 792'; swivel packing failure; pull out of hole. Oct 6, 2012 Pulled out of hole to casing shoe; rack back power swivel; work on power swivel; fix power swivel; run in hole (with flex collars & drill pipe); pick up power swivel & ream up from 792’ to 761’; drill & slide from 792’ to 1,047’; circulate. Oct 7, 2012 Drill/slide from 1,047’ to 1,057’; pits sanded off; circulated & conditioned mud while working pipe (while waiting for truck to arrive); drill/slide from 1,057’ to 1,173’ (total depth for casing run); circulate bottoms up & take survey; set kelly back & pull out of hole to casing shoe; run back in hole to bottom; circulate; lay down 1 joint, set kelly back, & pull out of hole; lay down bottom hole assembly; clean rig floor; rig up Weatherford casing tools; begin running casing. Oct 8, 2012 Run casing (27 joints plus landing joint); rig down Weatherford; rig up Schlumberger cementers; circulate hole on Schlumberger pump; test lines & pump cement; rig down Schlumberger cementers; pull out of hanger & run down packoff; run in lock-downs & test packoff; suck out cellar with trash pump & nipple down blow-out preventers. Oct 9, 2012 Nipple up blow-out preventers; set lower 5½” pipes; set double gate rams; set annular; set choke skid; hook up choke line; hook up kill line; hook up flow line; fill line (gas buster hard line); change out upper pipe rams; change out #2 & #5 batteries; pick up & make up test joint, test plug, & TIW valve; fill stack with fresh water; hook up chart recorder; run choke lines to super choke; rig up & hook up test pump; test alarms (gas & H 2S); function test stack; swap lines on stack & re-function (good); test blow-out preventers (blinds, outside kill, choke #12, #11, #10). Oct 10, 2012 Clean pits; fix Halliburton pump; rig down test equipment; set mouse-hole in place; pull test plug & install wear bushing; load up catwalk & pick up bottom hole assembly; change out shaker screens; pick up trash while waiting on TIW valve; run in hole with heavy weight drill pipe, jars, & drill pipe to 1,047’ (tagged cement); pick up & make up kelly; change out shaker screens; rig up pump & slop tank; transfer mud; displace old mud with new mud; mix mud; pull out of hole to install float; trip back in; wait on equipment. Happy Valley B-15 30 Oct 11, 2012 Wait on floor valve; valve arrived, make up valve to test; rig up & make up test port to new TIW valve & test & change out upper kelly valve; test both upper & lower Kelly valves to 3500psi.; make up single & break circulation (circulate bottoms up for casing test); line up choke & stand pipe manifold, test casing to 1700 psi; line up to drill, tagged cement & float at 1,062; drilled shoe out & 10’ of new formation; lay down 2 joints; wait for state inspector to witness formation test; testing koomey unit. Oct 12, 2012 Wait on state inspector; formation integrity test, bled off; test charted; begin drilling/sliding ahead, taking surveys every joint; drill to 1,820’, greased swivel; drill/slide ahead to 2,274’. Oct 13, 2012 Drill from 2,274’ to 2,309’; pump sweeps & circulate bottoms up twice; stand back power swivel & pull out of hole to casing shoe for short trip (working through tight spots using power swivel); clean rig floor; trip back in hole, take survey on bottom; drill/slide from 2,309’ to 2,814’. Oct 14, 2012 Drill from 2,814’ to 3,100’ (slid from 2,720’ to 2,735’); took survey on bottom; pump high viscosity sweep, circulate bottoms up; fill trip tank, set back swivel & pull 21 stands out of hole (short trip); run in hole to bottom (hole in good shape); pick up & make up swivel; break circulation, circulate bottoms up 3 times, then pump sweep around; pull out of hole for e-logs; rig up e-logging truck; run e-logs. Oct 15, 2012 Finish e-logging; rig up tools & start running in hole with bottom hole assembly & heavy weight drill pipe; break circulation @ 10 stands, 2,100’, & 3,092’; pick up & make up power swivel; circulate & condition hole while moving pipe; rig down power swivel, fill trip tank, & pull out of hole straping pipe; rig up casing equipment. Oct 16, 2012 Run 5½” liner in hole, filling every 5 joints (2 stop rings & 1 centralizer every other joint) – 51 joints total; pick up liner hanger, inspect & install; pour polymer in hanger, wait 30 minutes to set up; run in hole 13 stands, establish circulation, circulate bottoms up; rig up & test cement equipment & lines; pump cement & displace with 53 barrels active mud; rig down cement equipment. Oct 17, 2012 Rig down Mudlogging Unit #04. Happy Valley B-15 31 4.2 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) 15.60 0.00 0.00 15.60 0.00 0.00 0.00 0.00 18.30 0.03 273.19 18.30 0.00 0.00 0.00 1.09 71.77 0.61 273.19 71.77 0.02 -0.30 0.09 1.09 145.88 0.73 273.19 145.87 0.06 -1.16 0.34 0.16 203.27 1.18 273.19 203.26 0.12 -2.12 0.62 0.78 294.71 2.48 246.14 294.65 -0.63 -4.87 2.26 1.67 386.71 6.64 228.01 386.34 -5.00 -10.64 8.35 4.73 477.92 10.01 223.56 476.58 -14.27 -20.03 20.28 3.76 565.53 12.86 219.75 562.44 -27.29 -31.51 36.45 3.36 662.12 16.56 206.59 655.88 -47.87 -44.56 60.26 5.14 755.30 20.47 203.61 744.22 -74.69 -57.03 89.73 4.32 850.21 26.50 198.73 831.23 -109.98 -70.49 127.50 6.67 944.74 32.76 193.27 913.38 -154.90 -83.15 174.03 7.21 1,039.17 36.19 194.75 991.21 -206.75 -96.11 227.18 3.74 1,102.37 35.99 195.14 1,042.28 -242.71 -105.72 264.26 0.48 1,180.40 36.00 193.85 1,105.42 -287.12 -117.21 309.91 0.97 1,275.34 36.67 192.15 1,181.91 -341.92 -129.85 365.72 1.28 1,369.59 36.01 194.87 1,257.83 -396.22 -142.89 421.19 1.85 1,464.53 35.72 196.30 1,334.77 -449.79 -157.83 476.64 0.93 1,559.08 35.89 200.51 1,411.47 -502.24 -175.29 531.90 2.61 1,654.00 35.43 203.19 1,488.60 -553.59 -195.87 587.19 1.72 1,748.57 36.07 201.77 1,565.35 -604.65 -216.99 642.39 1.11 1,843.02 38.16 202.92 1,640.66 -657.35 -238.67 699.34 2.33 1,937.99 41.49 202.91 1,713.59 -713.37 -262.35 760.08 3.50 2,032.99 41.09 201.81 1,784.97 -771.34 -286.20 822.71 0.87 2,127.93 41.43 201.43 1,856.34 -829.55 -309.26 885.30 0.44 2,222.84 42.06 201.69 1,927.15 -888.31 -332.48 948.47 0.69 2,317.65 42.43 200.67 1,997.14 -947.24 -357.33 1,012.34 0.56 2,411.97 43.14 201.57 2,066.36 -1,007.00 -380.42 1,076.40 0.99 2,507.14 41.75 198.21 2,136.60 -1,067.37 -402.28 1,140.60 2.80 2,601.81 41.27 195.99 2,207.50 -1,127.33 -420.73 1,203.25 1.63 2,696.37 40.54 194.45 2,278.97 -1,187.07 -436.99 1,264.94 1.32 2,791.42 39.88 195.19 2,351.56 -1,246.39 -452.68 1,326.04 0.86 2,886.15 40.87 196.08 2,423.73 -1,305.47 -469.22 1,387.22 1.21 2,980.85 41.63 195.53 2,494.93 -1,365.55 -486.23 1,449.48 0.89 3,051.79 42.15 194.96 2,547.74 -1,411.25 -498.68 1,496.68 0.92 3,100.0* 42.15 194.96 2,583.48 -1,442.51 -507.03 1,496.68 0.92 *projection to bit @ TD Ha p p y V a l l e y B - 1 5 32 4. 3 B i t R e c o r d BI T NO . SI Z E TY P E S / N JE T S / TF A IN O U T F T H R S AV E R O P Ft / H R CONDITION 1 9 - 7 / 8 ” Sm i t h X R + M i l l To o t h PX 0 7 0 2 3 x 6 / 0 . 3 8 9 9 7 ’ 1 , 1 7 3 ’ 1 , 0 7 6 ’ 4 2 . 5 8 1 . 1 3 - 2 - SS-A-E-I-WT-TD 2 6 - 3 / 4 ” Sm i t h X R + M i l l To o t h PT 5 0 4 2 3 x 1 3 / 0 . 3 8 9 1 , 1 7 3 ’ 3 , 1 0 0 ’ 1 , 9 2 7 ’ 3 1 . 8 7 3 . 5 2-2-SS-A-E-2-RG-TD Ha p p y V a l l e y B - 1 5 33 4. 4 M u d R e c o r d Co n t r a c t o r : H a l l i b u r t o n Mu d T y p e : K C l P o l y m e r Da t e D e p t h MW (p p g ) VI S (s / q t ) PV Y P G e l s FL (c c ) FC So l s (% ) O/ W Ra t i o Sd (% ) MB T p H Cl (ml/l) Ca (ml/l) 10 - 0 3 - 1 2 6 0 8 . 8 — 8 9 4 / 6 / 0 — — — — — — — — — 10 - 0 4 - 1 2 3 9 4 8 . 9 4 0 9 1 7 6 / 7 / 7 7 . 8 1 2 . 2 0 / 9 6 . 2 2 . 0 0 — 9 . 1 2 9 , 0 0 0 4 0 10 - 0 5 - 1 2 7 3 7 9 . 0 4 0 1 3 2 1 7 / 9 / 1 1 8 . 0 1 1 . 6 0 / 9 6 . 0 3 .5 0 — 8 . 6 2 9 , 0 0 0 4 0 10 - 0 6 - 1 2 9 5 2 8 . 9 4 2 1 4 3 0 8 / 1 2 / 1 4 8 . 0 1 1 . 9 0 / 9 5 . 7 4. 0 0 — 8 . 6 2 9 , 0 0 0 8 0 10 - 0 7 - 1 2 1 , 1 7 3 9 . 1 4 5 2 3 4 3 1 5 / 1 9 / 2 1 7 . 5 1 3 . 3 0 / 9 4 .3 5 . 0 0 — 9 . 2 2 9 , 0 0 0 1 2 0 10 - 0 8 - 1 2 1 , 1 7 3 9 . 1 4 5 2 3 4 3 1 7 / 2 0 / 2 4 7 . 7 1 3 . 4 0 / 9 4 .3 5 . 0 0 — 9 . 0 2 8 , 0 0 0 1 2 0 10 - 0 9 - 1 2 1 , 1 7 3 8 . 8 3 5 8 1 9 3 / 5 / 8 8 . 2 1 1 . 1 0 / 9 6 . 5 — — 8 . 0 2 9 , 0 0 0 8 0 10 - 1 0 - 1 2 1 , 1 7 3 8 . 8 3 8 8 9 3 / 4 / 5 6 . 5 1 1 . 1 0 / 9 6 . 5 — — 8.9 29,000 80 10 - 1 1 - 1 2 1 , 1 7 3 8 . 8 3 5 7 8 1 / 2 / 2 8 . 0 1 1 . 1 0 / 9 6 . 5 — — 11.5 29,000 200 10 - 1 2 - 1 2 1 , 9 9 2 8 . 9 4 0 1 2 1 6 4 / 5 / 7 6 . 0 1 1 . 9 0 / 9 5 . 7 0. 2 0 — 1 0 . 7 2 9 , 0 0 0 2 2 0 10 - 1 3 - 1 2 2 , 6 5 6 9 . 0 4 5 1 3 1 6 4 / 6 / 9 6 . 0 1 2 . 9 0 / 9 5 . 5 0. 0 5 — 9 . 0 2 9 , 0 0 0 2 2 0 10 - 1 4 - 1 2 3 , 1 0 0 9 . 1 4 6 1 9 1 8 5 / 8 / 9 5 . 5 1 3 . 3 0 / 9 4 . 3 0. 2 5 — 9 . 1 2 9 0 0 0 2 1 0 10 - 1 5 - 1 2 3 , 1 0 0 9 . 2 5 2 2 0 1 7 6 / 9 / 1 3 5 . 8 1 4 . 1 0 / 9 3 . 6 0 . 3 0 — 9 . 1 2 9 0 0 0 2 0 0 10 - 1 6 - 1 2 3 , 1 0 0 9 . 3 5 4 2 0 1 8 4 / 6 / 1 2 5 . 5 1 4 . 8 0 / 9 2 . 9 0 . 3 0 — 1 0 . 5 2 9 0 0 0 2 4 0 Ab b r e v i a t i o n s : MW = M u d W e i g h t V I S = F u n n e l V i s c o s i t y P V = P l a s t i c V i s c o s i t y Y P = Y i e l d P o i n t G e l s = G e l S t r e n g t h F L = W a t e r o r F i l t r a t e L o s s FC = F i l t e r C a k e O / W = O i l t o W a t e r r a t i o S o l s = S o l i d s S d = S a n d c o n t e n t M B T = M e t h y l e n e B l u e A l k , P m = A l k a l i n i t y , M u d pH = A c i d i t y / B a s i c i t y C l = C h l o r i d e s C a = H a r d n e s s ( C a l c i u m ) n r = N o t R e c o r d e d Ha p p y V a l l e y B - 1 5 34 4. 5 D r i l l i n g P r o g r e s s C h a r t Happy Valley B-15 35 5 DAILY DRILLING REPORTS