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Home My WebLink About203-191Suspended Well Inspection Review Report Reviewed By: P.I. Suprv Comm ________ JBR 10/03/2025 InspectNo:susGDC250820115808 Well Pressures (psi): Date Inspected:8/21/2025 Inspector:Guy Cook If Verified, How?Other (specify in comments) Suspension Date:1/26/2025 #324-653 Tubing:0 IA:0 OA:0 Operator:Hilcorp Alaska, LLC Operator Rep:Zachary Rohr Date AOGCC Notified:8/20/2025 Type of Inspection:Initial Well Name:CANNERY LOOP UNIT 07 Permit Number:2031910 Wellhead Condition The wellhead is in good condition, but there are no valve handles and the wellhouse is not over the well. Surrounding Surface Condition Concrete blocks protect the well on two sides and a constuction cone protects on one side. The area around the well is clean with no trash or signs of hydrocarbons. Condition of Cellar Small amount of debris in the cellar. There is some rainwater in the cellar. No sheen seen. Comments Well location was verified by pad map. I was informed by Zachary Rohr that the wellhouse is going to be put back over the well on a later date. Supervisor Comments Photos (6) attached Suspension Approval:Sundry Location Verified? Offshore? Fluid in Cellar? Wellbore Diagram Avail? Photos Taken? VR Plug(s) Installed? BPV Installed? Friday, October 3, 2025             2025-0821_Suspend_CLU-7_photos_gc Page 1 of 3 Suspended Well Inspection – CLU-7 PTD 2031910 AOGCC Inspection Rpt # susGDC250820115808 Photos by AOGCC Inspector G. Cook 8/21/2025 CLU 7 Debris in well cellar 2025-0821_Suspend_CLU-7_photos_gc Page 2 of 3 IA pressure gauge OA pressure gauge 2025-0821_Suspend_CLU-7_photos_gc Page 3 of 3 Tree Cap pressure gauge Wellhouse not over well Nolan Vlahovich Hilcorp Alaska, LLC Geotech 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-4558 E-mail: nolan.vlahovich@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: Date: 4/02/2025 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20250402 Well API #PTD #Log Date Log Company Log Type AOGCC E-Set# BCU 19RD 50133205790100 219188 3/20/2025 YELLOWJACKET GPT-PERF BCU 19RD 50133205790100 219188 3/16/2025 YELLOWJACKET PLUG BRU 212-26 50283201820000 220058 3/21/2025 AK E-LINE Perf BRU 212-26 50283201820000 220058 3/15/2025 AK E-LINE Perf CLU 7 50133205310000 203191 1/22/2025 YELLOWJACKET PLUG IRU 11-06 50283201300000 208184 3/20/2025 AK E-LINE Perf KALOTSA 10 50133207320000 224147 3/1/2025 YELLOWJACKET GPT-PLUG-PERF KBU 22-06Y 50133206500000 215044 1/25/2025 YELLOWJACKET GPT-PLUG-PERF KU 13-06A 50133207160000 223112 3/18/2025 AK E-LINE CIBP MPE-20A 50029225610100 204054 3/13/2025 READ CaliperSurvey MPI 1-39A 50029218270100 206187 3/4/2025 YELLOWJACKET PERF MPU C-01 50029206630000 181143 1/30/2025 YELLOWJACKET PERF MPU K-17 50029226470000 196028 2/7/2025 AK E-LINE Caliper MPU S-53 50029238110000 224159 3/7/2025 YELLOWJACKET SCBL MRU A-15RD2 50733201050200 202019 3/10/2025 AK E-LINE TubingCut PBU 18-27E 50029223210500 212131 3/15/2025 YELLOWJACKET RCT PBU B-30A 50029215420100 201105 3/7/2025 READ CaliperSurvey PBU S-10A 50029207650100 191123 11/18/2024 YELLOWJACKET CBL-TEMP PBU W-220A 50029234320100 224161 2/22/2025 YELLOWJACKET SCBL Revision explanation: Fixed API# on log and .las files Please include current contact information if different from above. T40256 T40256 T40257 T40257 T40258 T40259 T40260 T40261 T40262 T40263 T40264 T40265 T40266 T40267 T40268 T40269 T40270 T40271 T40272 CLU 7 50133205310000 203191 1/22/2025 YELLOWJACKET PLUG Gavin Gluyas Digitally signed by Gavin Gluyas Date: 2025.04.02 12:55:27 -08'00' MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission DATE:Monday, March 17, 2025 SUBJECT:Mechanical Integrity Tests TO: FROM:Sully Sullivan P.I. Supervisor Petroleum Inspector NON-CONFIDENTIAL Hilcorp Alaska, LLC 07 CANNERY LOOP UNIT 07 Jim Regg InspectorSrc: Reviewed By: P.I. Suprv Comm ________ JBR 03/17/2025 07 50-133-20531-00-00 203-191-0 N SPT 4756 2031910 2000 0 5 5 5 OTHER P Sully Sullivan 1/25/2025 Tubing was pulled; tested 9 5/8 Casing plug set at 7535' to 2000 psi per sundry # 324-653. 30 MinPretestInitial15 Min Well Name Type Test Notes: Interval P/F Well Permit Number: Type Inj TVD PTD Test psi API Well Number Inspector Name:CANNERY LOOP UNIT 07 Inspection Date: Tubing OA Packer Depth 0 2250 2225 2225IA 45 Min 60 Min Rel Insp Num: Insp Num:mitSTS250131113314 BBL Pumped:4.5 BBL Returned:4.5 Monday, March 17, 2025 Page 1 of 1 9 9 9 9 9 9 999 99 9 9 9 *DVSURGXFHUQRWXELQJZHOOVXVSHQGHGDWWLPHRIWHVW James B. Regg Digitally signed by James B. Regg Date: 2025.03.17 10:47:26 -08'00' 1a. Well Status:Oil SPLUG Other Abandoned Suspended 1b. Well Class: 20AAC 25.105 20AAC 25.110 Development Exploratory GINJ WINJ WDSPL No. of Completions: __________________ Service Stratigraphic Test 2. Operator Name: 6. Date Comp., Susp., or 14. Permit to Drill Number / Sundry: Aband.: 3. Address: 7. Date Spudded: 15. API Number: 4a. Location of Well (Governmental Section): 8. Date TD Reached: 16. Well Name and Number: Surface: Top of Productive Interval: 9. Ref Elevations: KB: 17. Field / Pool(s): GL: 21' BF: Total Depth: 10. Plug Back Depth MD/TVD: 18. Property Designation: 4b. Location of Well (State Base Plane Coordinates, NAD 27): 11. Total Depth MD/TVD: 19. DNR Approval Number: Surface: x- y- Zone- 4 TPI: x- y- Zone- 4 12. SSSV Depth MD/TVD: 20. Thickness of Permafrost MD/TVD: Total Depth: x- y- Zone- 4 5. Directional or Inclination Survey: Yes (attached) No 13. Water Depth, if Offshore: 21. Re-drill/Lateral Top Window MD/TVD: Submit electronic information per 20 AAC 25.050 N/A (ft MSL) 22.Logs Obtained: N/A 23. BOTTOM 20" K-55 124' 13-3/8" K-55 1,516' 9-5/8" L-80 4,952' 3-1/2" L-80 7,992' 24. Open to production or injection? Yes No 25. 26. Was hydraulic fracturing used during completion? Yes No DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 27. Date First Production: Method of Operation (Flowing, gas lift, etc.): Hours Tested: Production for Gas-MCF: Test Period Casing Press: Calculated Gas-MCF: Oil Gravity - API (corr): Press. 24-Hour Rate Sr Res EngSr Pet GeoSr Pet Eng Kenai C.L.U. / Beluga Gas N/A Oil-Bbl: Water-Bbl: N/A Water-Bbl: PRODUCTION TEST N/A Date of Test: Oil-Bbl: Flow Tubing Gas-Oil Ratio:Choke Size: Per 20 AAC 25.283 (i)(2) attach electronic information 68# 7,760' Surface Surface 129# Surface 1,796' SIZE DEPTH SET (MD) PACKER SET (MD/TVD) 7,588'9.2#N/A DrivenSurface N/A N/A 40# Surface 124'Surface CASING WT. PER FT.GRADE 1/13/2004 CEMENTING RECORD N/A N/A SETTING DEPTH TVD 2392834.20 TOP HOLE SIZE AMOUNT PULLED N/A 276863.60 TOP SETTING DEPTH MD suspension, or abandonment; or within 90 days of acquisition of the log, whichever occurs first. Types of logs to be listed include, but are not limited to: mud log, spontaneous potential, gamma ray, caliper, resistivity, porosity, magnetic resonance, dipmeter, formation tester, temperature, cement evaluation, casing collar locator, jewelry, and perforation record. Acronyms may be used. Attach a separate page only if necessary. N/A BOTTOM 50-133-20531-00-00 Cannery Loop Unit (CLU) 07 ADL-0373302 ADL0324602 FEE TR73 187' FSL, 204' FEL, Sec. 7, T5N, R11W, S.M. 809 FNL, 1469 FEL, Sec. 8, T5N, R11W, S.M. N/A 12/20/2003 10,864' MD / 7,992' TVD 7,175' MD / 4,456' TVD 42' 272777.00 2388627.30 N/A 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG WAG Gas 1/26/2025 203-191 / 324-653Hilcorp Alaska, LLC If Yes, list each interval open (MD/TVD of Top and Bottom; Perforation Size and Number; Date perf'd or liner run): ACID, FRACTURE, CEMENT SQUEEZE, ETC. CASING, LINER AND CEMENTING RECORD List all logs run and, pursuant to AS 31.05.030 and 20 AAC 25.071, submit all electronic data within 90 days of completion, 565 sks12-1/4" TUBING RECORD 885 sks10,854' 495 sks N/A 4,802' 16" N/A 7" N/A Form 10-407 Revised 10/2022 Due within 30 days of Completion, Suspension, or Abandonment By James Brooks at 10:24 am, Feb 14, 2025 Suspended 1/26/2025 JSB RBDMS JSB 022825 xGDSR-4/7/25BJM 11/10/25 Conventional Core(s): Yes No Sidewall Cores: 30. MD TVD Top of Productive Interval 31. List of Attachments: Operations Summary, Schematic 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Name: Stefan Reed, Operations Engineer Digital Signature with Date:Contact Email:stefan.reed@hilcorp.com Contact Phone: 206-518-0400 Authorized General: Item 1a: Item 1b: Item 4b: Item 9: Item 15: Item 19: Item 20: Item 22: Item 23: Item 24: Item 27: Item 28: Item 30: Formation Name at TD: Report measured depth and true vertical thickness of permafrost. Provide MD and TVD for the top and base of permafrost in Box 29. Attached supplemental records should show the details of any multiple stage cementing and the location of the cementing tool. 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). Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Pursuant to 20 AAC 25.071, submit detailed descriptions, core chips, photographs, and all subsequent laboratory analytical results, including, but not limited to: porosity, permeability, fluid saturation, fluid composition, fluid fluorescence, vitrinite reflectance, geochemical, or paleontology. Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). 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. Review the reporting requirements of 20 AAC 25.071 and, pursuant to AS 31.05.030, submit all electronic data within 90 days of completion, suspension, or abandonment; or 90 days after log acquisition, whichever occurs first. Report the Division of Oil & Gas / Division of Mining Land and Water: Plan of Operations (LO/Region YY-123), Land Use Permit (LAS 12345), and/or Easement (ADL 123456) number. The Kelly Bushing, Ground Level, and Base Flange elevations in feet above Mean Sea Level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). This form and the required attachments provide a complete and concise record for each well drilled in Alaska. Submit a current well schematic diagram with each 10-407. Submit 10-407 and attachments in PDF format to aogcc.permitting@alaska.gov. All laboratory analytical reports from a well must be submitted to the AOGCC, no matter when the analyses are conducted per 20 AAC 25.071. Information to be attached includes, but is not limited to: summary of daily operations, wellbore schematic, directional or inclination survey, as-built, core analysis, paleontological report, production or well test results, per 20 AAC 25.070. 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. TPI (Top of Producing Interval). Authorized Name and INSTRUCTIONS Noel Nocas, Operations Manager 907-564-5278 Well Class - Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Yes No Well tested? Yes No 28. CORE DATA If Yes, list intervals and formations tested, briefly summarizing test results for each. Attach separate pages if needed and submit detailed test info including reports and Excel or ASCII tables per 20 AAC 25.071. NAME Permafrost - Top Permafrost - Base 29. GEOLOGIC MARKERS and POOL BOUNDARIES: (list all encountered) FORMATION TESTS If Yes, list formations and intervals cored (MD/TVD, From/To), and briefly summarize lithology and presence of oil, gas or water (submit separate pages if needed). Submit detailed descriptions, core chips, photographs, and all subsequent laboratory analytical results per 20 AAC 25.071 no matter when acquired. Form 10-407 Revised 10/2022 Submit in PDF format to aogcc.permitting@alaska.gov Noel Nocas (4361) Digitally signed by Noel Nocas (4361) Date: 2025.02.13 17:46:51 -09'00' _____________________________________________________________________________________ Updated by DMA 02-11-25 SCHEMATIC Cook Inlet Basin, Alaska Middle Ground Shoal Last Completed: 02-28-1992 Oil Well ->Water injector -> Gas producer for Platform Kenai CLU Well: Cannery Loop Unit-07 Last Completed: 2/21/2004 API: 50-133-20531-00 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20"Conductor 129 / K-55 / N/A N/A Surf 124' 13-3/8"Surface 68 / K-55 / BTC 12.415 Surf 1,796' 9-5/8"Production 40 / L-80 / BTC 8.835 Surf 7,760’ 3-1/2"Liner 9.2 / L-80 / Hydril 563 2.992 7,588’10,854’ JEWELRY DETAIL No Depth ID Item 1 7,175’9-5/8” CIBP (whipstock base) 1/25/25 2 7,535’ZXP Liner Top Packer #265-28-0229 3 7,975’ N/A CIBP capped w/ 28’ of cement (1/23/25) TOC @ 7,947’ (1/24/25) 4 8,300’N/A CIBP capped w/ 10’ of cement 5 8,490’N/A CIBP capped w/ 10’ of cement 6 8,500’2.25 X-Span Patch, Btm @ 8,531’, Set 4/17/04 PERFORATION DETAIL Zone Top (MD)Btm (MD)Top (TVD)Btm (TVD)FT SPF Date Status Beluga 7,984'7,998'5,155'5,169'14'4 Isolated Beluga 8,014’8,024’5,182’5,191’10’5 1/22/16 Isolated Beluga 8,163’8,173’5,320’5,329’10’5 1/22/16 Isolated Beluga 8,227'8,261'5,380'5,412'34'4 Isolated Beluga 8,236’8,246’5,388’5,398’10’5 1/22/16 Isolated Beluga 8,320'8,353'5,467'5,498'33'4 Isolated Beluga 8,506'8,526'5,644'5,663'20'4 Patched Beluga 8,929'8,969'6,057'6,098'40'4 8/13/2010 Squeezed Beluga 9,068'9,096'6,196'6,224'28'4 Isolated Beluga 9,182'9,202'6,310'6,330'20'4 Isolated Beluga 9,295'9,315'6,423'6,443'20'4 Isolated Beluga 9,328'9,341'6,456'6,469'13'6 4/17/2004 Isolated Beluga 9,353'9,385'6,481'6,513'32'4 Isolated Beluga 9,658'9,714'6,786'6,842'56'4 Isolated Beluga 9,838'9,864'6,966'6,992'26'4 Isolated Beluga 9,942'9,976'7,070'7,104'34'4 Isolated Beluga 10,132'10,158'7,260'7,286'26'4 Isolated Beluga 10,170'10,200'7,298'7,328'30'4 Isolated Tag @ 10,553’ on 8/18/10 w/ 2.00” GR (Slickline). Casing CEMENTING DETAIL 13-3/8"16" Hole Cmt w/ 495 sks, 100% returns w/ 40 bbls to surface 9-5/8"Cmt w/ 250 sks lead (93.6 bbl) & 315 sks tail (65bbl)of class G 3-1/2”Cmt w/ 885 sks of class G. Bumped plug, floats held. CBL shows TOC @ 7756’ (casing shoe) INCLINATION DETAIL Max Hole Angle:build from 400 to 1,650' at 5 deg /100 60 deg 1,650' to 5,600' drop at 2 deg / 100 to 9'200' Final Angle:1 deg Max Doglegs (deg/100'):8.31 @ 1'181' Page 1/1 Well Name: CLU 007 Report Printed: 1/31/2025WellViewAdmin@hilcorp.com Alaska Weekly Report - Operations Jobs Actual Start Date:1/22/2025 End Date: Report Number 1 Report Start Date 1/22/2025 Report End Date 1/23/2025 Last 24hr Summary PTW/PJSM. MIRU Yellow Jacket E-line. P-test 250/2,500 psi. Run 2.80" GR/JB to 8,021'. SDFN. Report Number 2 Report Start Date 1/23/2025 Report End Date 1/24/2025 Last 24hr Summary PTW/PJSM. Set CIBP at 7,975'. Tag and log off to confirm set depth of 7,975'. Dump bail 25' of cement on top of CIBP. RDMO YJ E-line. (Note: AOGCC plug tag witness waived by Jim Regg). Rig 401 Load out trucks and trailers to move f/SCU 42B-05 t/ CLU-07, Pull well house off and set to side, back drag and level off location, lay out liner and set base beam, Get w/ production and remove well cover and flow line, install blind flange on flow line, put well cover back on, Spot in equipment and rig up, Prep to raise derrick. Raise and scope up derrick, secure guy lines. Finish up w/ loader work, Get vac truck to location to fill mud tank and test unit, Check pressures on tubing, IA and OA 0 psi, Cont. rigging up back yard and equipment. Fill 3 1/2" tubing w/ 25 bbl's 8.4 ppg, MIT 3-1/2" tubing to 2,000 psi for 30 min, Install BPV. Report Number 3 Report Start Date 1/24/2025 Report End Date 1/25/2025 Last 24hr Summary Set BPV. Terminate CIL. N/d and pull tree. M/u blanking sub on hanger. N/u BOPE. Get pre-charge pressures on koomey bottles. M/u 3-1/2 test joint. Fluid pack BOPE. Pressure up and look for leaks. Found choke flange leaking. Bleed off and torque up. Test BOPE to Hilcorp's and AOGCC's expectations, 3-1/2" TJ, 13-5/8" 5M BOP, 250psi/3000psi 5 minutes each. Test gas alarms and PVT, manual chokes, perform koomey drawdown. No failures. Witness waived by AOGCC's Bryan McLellan. Pull test joint and blanking sub, pull BPV. R/u E-line RIH w/ 1-11/16" wt bars and CCL, correlate run to previous plug run. Tag cement at 7947' ELM (28'), POOH. M/u landing joint to hanger, BOLD w/ vault rep, Pull hanger, Circulate 550 bbl's, Back out landing jnt, break landing jnt off of hanger and get x/o off for TIW, Lay down 3 1/2" 9.2#, L-80, butt, tubing w/ CIL, Lay out Chem injection mandrel, Cont. laying 3 1/2” tubing Report Number 4 Report Start Date 1/25/2025 Report End Date 1/26/2025 Last 24hr Summary Cont. laying down 3 1/2" 9.2#, L-80, tubing to surface. 250 joints, 4 pups, CIM, Seal assembly, and 112 bands recovered. MIT 9-5/8" casing and liner top packer to 2000 psi. Initial pressure 2250 psi, 15 min. 2225 psi, 30 min. 2225 psi. 4.5 bbls in and out. Good test. Test witnessed by AOGCC's Sully Sullivan. R/u YJEL. Run #1 RIH w/ 7.8" GR w/ JB to 7505'. Run #2 RIH w/ CBL and log up from 7500' to surface. Run #3 RIH w/ 9-5/8" CIBP to 7235' and make correlation pass to 6650'. Set CIBP at 7175', confirm set with tag POOH. R/d down E-line equipment, Top off well with water. R/u test equipment. MIT casing after setting CIBP to 3000 psi. Initial pressure 3,250 psi, 15 min. 3,240 psi, 30 min. 3,240 psi. 6.8 bbls in and out. Good test, N/d BOPE, N/u production tree, Rig down to stage equipment to side of location Report Number 5 Report Start Date 1/26/2025 Report End Date 1/27/2025 Last 24hr Summary Rig down 401, loading equipment on trailers. Staging equipment to the side of location. Crews going on days off and will return on 2/7/25. Field: Cannery Loop Sundry #: 324-653 State: ALASKA Rig/Service:Permit to Drill (PTD) #:203-191Permit to Drill (PTD) #:203-191 Wellbore API/UWI:50-133-20531-00-00 Nolan Vlahovich Hilcorp Alaska, LLC Geotech 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-4558 E-mail: nolan.vlahovich@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: Date: 2/16/2025 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20250216 Well API #PTD #Log Date Log Company Log Type AOGCC Eset # BRU 232-04 50283100230000 132037 1/18/2025 AK E-LINE Perf CLU 08 50133205340000 204005 2/13/2025 YELLOWJACKET SCBL CLU 10RD2 50133205530200 224135 1/2/2025 YELLOWJACKET SCBL CLU 10RD2 50133205530200 224135 12/13/2024 YELLOWJACKET SCBL CLU 7 50133205310000 203191 1/25/2025 YELLOWJACKET SCBL IRU 44-36 50283200890000 193022 1/21/2025 AK E-LINE Plug/Perf KALOTSA 10 50133207320000 224147 2/11/2025 YELLOWJACKET SCBL KALOTSA 9 50133207310000 224145 1/26/2025 YELLOWJACKET SCBL KBU 22-06Y 50133206500000 215044 1/11/2025 YELLOWJACKET SCBL KU 13-06A 50133207160000 223112 1/12/2025 YELLOWJACKET SCBL MRU M-25 50733203910000 187086 1/15/2024 AK E-LINE PPROF NCIU A-21 50883201990000 224086 1/6/2024 AK E-LINE Plug/Perf PBU 06-05A 50029202980100 224115 1/14/2025 HALLIBURTON RBT PBU 09-35B 50029213140200 224122 2/3/2025 HALLIBURTON RBT PBU B-12B 50029203320200 224133 1/20/2025 HALLIBURTON RBT PBU D-12 50029204430000 180015 12/19/2024 BAKER SPN PBU F-08B 50029201350200 212040 1/27/2025 HALLIBURTON RBT PBU NK-41A 50029227780100 197158 12/18/2024 YELLOWJACKET CBL PBU S-100A 50029229620100 224083 1/5/2025 HALLIBURTON RBT Revision Explanation: Annotations added to processed log. Please include current contact information if different from above. 162-037 T40080 T40081 T40082 T40082 T40083 T40084 T40085 T40086 T40087 T40088 T40089 T40090 T40091 T40092 T40093 T40094 T40095 T40096 T40097 CLU 7 50133205310000 203191 1/25/2025 YELLOWJACKET SCBL Gavin Gluyas Digitally signed by Gavin Gluyas Date: 2025.02.18 13:06:47 -09'00' CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. From:McLellan, Bryan J (OGC) To:Stefan Reed Subject:RE: CLU-08 CMIT-TxIA Date:Friday, February 7, 2025 3:52:00 PM Attachments:image003.png Stefan, Hilcorp has approval to proceed with the change requested below. Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Stefan Reed <Stefan.Reed@hilcorp.com> Sent: Friday, February 7, 2025 3:48 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: CLU-08 CMIT-TxIA Bryan, In the attached approved sundry I had in the original plan to CMIT-TxIA after tubing cut. Since we will be setting a plug above the tubing stub and testing then I would like to forgo this step. Regards, Stefan Reed Operations Engineer Kenai Asset Team Cell: 206-518-0400 Hilcorp Alaska, LLC The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are herebynotified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, pleaseimmediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently deletethis message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibilityis accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. 1. Type of Request:Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing 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): 10,864'8,504' Casing Collapse Structural Conductor Surface 1,950 psi Intermediate 3,090 psi Production Liner 10,530' 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 ZXP Liner Top Packer; N/A 7,535' MD / 4,756' TVD; N/A 7,992'8,290'5,439' Kenai C.L.U.Beluga Gas 20" 13-2/8" See Attached Schematic 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Cannery Loop Unit (CLU) 07CO 231A Same ~1,834psi 8,300'; 8,490' Length November 29, 2024 10,854'3,266' Tie Back 3-1/2" 7,992' Perforation Depth MD (ft): 7,760' 3-1/2" See Attached Schematic 5,750 psi 3,450 psi 124' 4,953' 124' 1,796' Size 103' 9-5/8"7,739' 1,775' MD Hilcorp Alaska, LLC Proposed Pools: 9.2# / L-80 TVD Burst 7,535' 1,516' 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 ADL0324602|ADL0373302|FEE-TR73 203-191 50-133-20531-00-00 Tubing Size: PRESENT WELL CONDITION SUMMARY Chad Helgeson, Operations Engineer AOGCC USE ONLY 10,160 psi Tubing Grade: chelgeson@hilcorp.com 907-777-8405 Noel Nocas, Operations Manager 907-564-5278 Suspension Expiration Date: Will perfs require a spacing exception due to property boundaries? Current Pools: MPSP (psi):Plugs (MD): 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name and Digital Signature with Date: m n P s t _ N 66 Form 10-403 Revised 06/2023 Approved application valid for 12 months from date of approval.Submit PDF to aogcc.permitting@alaska.gov By Grace Christianson at 8:38 am, Nov 18, 2024 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2024.11.15 16:03:00 - 09'00' Noel Nocas (4361) 324-653 X SFD 12/2/2024 BOP test to 3000 psi, annular test to 2500 psi. DSR-11/21/24 Pressure test 9-5/8" casing and liner-top packer to 2000 psi after pulling tubing. Provide 24 hrs notice to AOGCC for opportunity to witness. Notify AOGCC petroleum engineer, Bryan McLellan of test results before setting 9-5/8" bridge plug. X Provide 24 hrs notice for AOGCC opportunity to witness plug at 7975' md tag and pressure test to 2000 psi. 10-407 BJM 1/22/25*&: Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2025.01.22 14:55:10 -09'00'01/22/25 RBDMS JSB 012425 Well Prognosis Well: CLU-7 02/01/2022 Well Name: CLU-7 API Number: 50-133-20531-00-00 Current Status: Shut in Gas Well Permit to Drill Number: 203-191 First Call Engineer: Chad Helgeson (907) 777-8405 (O) (907) 229-4824 (C) Second Call Engineer: Scott Warner (907) 564-4506 (O) (907) 830-8863 (C) Maximum Expected BHP: 2,121 psi @ 5,246’ TVD Based on CLU 13 RFT data on 2/2015 Maximum Potential Surface Pressure: ~1,596 psi @ 5,246’ TVD Using 0.1 psi/ft gradient 20 AAC 25.280(b)(4) Applicable Frac Gradient: NA – Prep for Sidetrack, plugging ops only Well Status: Cannery Loop #7 is a well that was drilled and completed in 2004 in the Beluga sands. A tubing patch was installed in 2004. In 2010 a cap string was installed to 9390’. In January 2015 an attempt was made to remove the capillary string which was unsuccessful. The capillary string was cut at 8,504’ and attempts were made to fish the remaining 700’ without success. A plug was set at 8,490’ and the Upper Beluga Perfs were added. The well did not flow and a plug was set at 8,290’. The well produced at a low rate 30-50 mcfd until 2021, when the well was rocked by operations and gas flowed for 2 months at rates up to 1,064 mcfd. The existing perforated zones are in the Beluga Gas Pool, per CO 231 (rule 2 and 3) in close proximity (<50ft) to the CINGSA Storage Pool. The bottom of the CINGSA Pool in CLU-07 is 7,969’ MD. Distance in CLU-07 top open perf (5154’TVD) to Base of CINGSA main storage sand (5099’TVD : not pool definition) is 55’ TVD. The purpose of this work is to prepare the well for redrill. Notes Regarding Wellbore Condition x Min ID = 2.867” (3-1/2” drift ID) x Expected Fluid Level: 5,350’ x Current solids fill depth 1/26/22: 8,096’ x CINGSA Bottom of Pool 5,141’ (TVD) 7,969’ (MD) x CINGSA Top: 4,920’ (TVD) 7,723’ (MD) x TOC @ 7756’ (casing shoe) x Fluid in Annulus is 8.65 ppg @ 82 degF KCl water Procedure: 1. MIRU E-line and pressure control equipment 2. PT lubricator to 250 psi low /2,000 psi high 3. PU 3-1/2” CIBP. RIH and set at 7975’ below collar at 7970’ (collect a log on plug tag) 4. PU Cement bailer and dump 25ft of cement on plug at 7970’. 5. Fill well with 8.4 ppg water x Notify AOGCC 24hrs in advance to tag plug and pressure test plug to 2000 psi (30 min) 6. RDMO Eline 7. MIRU 401 workover rig 8. Install TWC, ND tree, NU BOP 9. Test BOPE Well Prognosis Well: CLU-7 02/01/2022 ¾Test BOP to 250/3000 psi for 5/5 min. Test annular to 250/2500 psi for 5/5 min. (Notify AOGCC 24 hours in advance of test to allow them to witness test). ¾If the BOP is used to shut in on the well in a well control situation or if BOP equipment could be compromised, ALL BOP components utilized for well control or compromised must be tested prior to the next trip into the wellbore. ¾BOPs will be closed as needed to circulate the well during this workover. 10. Pull TWC 11. Pick up on hanger with short joint and prepared to circulate 12. Circulate fluid once tubing is out of the seals (~550bbls to circulate well) 13. Pull and lay down tubing x Seal assembly send to Baker for redress x Chem inj mandrel sent to Pollard for inspection/servicing 14. RU Eline 15. Run CBL on 9-5/8” casing 16. PU 9-5/8” CIBP, RIH and set at ~7,175 (5ft above collar) – This plug is a base for whipstock. (Reservoir is already isolated and tested with previous plug). Cement from new wellbore will be brought inside the 9-5/8” casing when drilling is complete above this plug. 17. RDMO Eline 18. Pressure test casing to 3000 psi x This pressure test is for drilling purposes, not for reservoir abandonment 19. ND BOP, NU dry hole tree 20. RDMO Rig 401 Attachments: 1) Actual Schematic. 2) Proposed Schematic 3) Rig 401 BOP Diagram 13-5/8” Run CBL on 9-5/8” casing Pressure test 9-5/8" casing to 2000 psi. Provide 24 hrs notice to AOGCC for opportunity to witness. Notify AOGCC petroleum engineer, Bryan McLellan of test results before setting 9-5/8" bridge plug. -bjm _____________________________________________________________________________________ Updated by DMA 07-10-24 SCHEMATIC Cook Inlet Basin, Alaska Middle Ground Shoal Last Completed: 02-28-1992 Oil Well ->Water injector -> Gas producer for Platform Kenai CLU Well: Cannery Loop Unit-07 Last Completed: 2/21/2004 API: 50-133-20531-00 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20"Conductor 129 / K-55 / N/A N/A Surf 124' 13-3/8"Surface 68 / K-55 / BTC 12.415 Surf 1,796' 9-5/8"Production 40 / L-80 / BTC 8.835 Surf 7,760’ 3-1/2"Liner 9.2 / L-80 / Hydril 563 2.992 7,588’10,854’ TUBING DETAIL 3-1/2”Tubing 9.2 / L-80 / Butt 2.992 Surf 7,535’ JEWELRY DETAIL No Depth ID Item 1 2,320’N/A Chemical Injection Mandrel 2 7,535’N/A ZXP Liner Top Packer #265-28-0229 3 8,300’N/A CIBP capped w/ 10’ of cement 4 8,490’N/A CIBP capped w/ 10’ of cement 5 8,500’2.25 X-Span Patch, Btm @ 8,531’, Set 4/17/04 PERFORATION DETAIL Zone Top (MD)Btm (MD)Top (TVD)Btm (TVD)FT SPF Date Status Beluga 7,984'7,998'5,155'5,169'14'4 Open Beluga 8,014’8,024’5,182’5,191’10’5 1/22/16 Open Beluga 8,163’8,173’5,320’5,329’10’5 1/22/16 Open Beluga 8,227'8,261'5,380'5,412'34'4 Open Beluga 8,236’8,246’5,388’5,398’10’5 1/22/16 Open Beluga 8,320'8,353'5,467'5,498'33'4 Isolated Beluga 8,506'8,526'5,644'5,663'20'4 Patched Beluga 8,929'8,969'6,057'6,098'40'4 8/13/2010 Squeezed Beluga 9,068'9,096'6,196'6,224'28'4 Isolated Beluga 9,182'9,202'6,310'6,330'20'4 Isolated Beluga 9,295'9,315'6,423'6,443'20'4 Isolated Beluga 9,328'9,341'6,456'6,469'13'6 4/17/2004 Isolated Beluga 9,353'9,385'6,481'6,513'32'4 Isolated Beluga 9,658'9,714'6,786'6,842'56'4 Isolated Beluga 9,838'9,864'6,966'6,992'26'4 Isolated Beluga 9,942'9,976'7,070'7,104'34'4 Isolated Beluga 10,132'10,158'7,260'7,286'26'4 Isolated Beluga 10,170'10,200'7,298'7,328'30'4 Isolated Tag @ 10,553’ on 8/18/10 w/ 2.00” GR (Slickline). Casing CEMENTING DETAIL 13-3/8"16" Hole Cmt w/ 495 sks, 100% returns w/ 40 bbls to surface 9-5/8"Cmt w/ 250 sks lead (93.6 bbl) & 315 sks tail (65bbl)of class G 3-1/2” Cmt w/ 885 sks of class G. Bumped plug, floats held. . CBL shows TOC @ 7756’ (9-5/8” casing shoe) INCLINATION DETAIL Max Hole Angle:build from 400 to 1,650' at 5 deg /100 60 deg 1,650' to 5,600' drop at 2 deg / 100 to 9'200' Final Angle:1 deg Max Doglegs (deg/100'):8.31 @ 1'181' _____________________________________________________________________________________ Updated by CAH 11/6/24 PROPOSED Cook Inlet Basin, Alaska Middle Ground Shoal Last Completed: 02-28-1992 Oil Well ->Water injector -> Gas producer for Platform Kenai CLU Well: Cannery Loop Unit-07 Last Completed: 2/21/2004 API: 50-133-20531-00 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20"Conductor 129 / K-55 / N/A N/A Surf 124' 13-3/8"Surface 68 / K-55 / BTC 12.415 Surf 1,796' 9-5/8"Production 40 / L-80 / BTC 8.835 Surf 7,760’ 3-1/2"Liner 9.2 / L-80 / Hydril 563 2.992 7,588’10,854’ TUBING DETAIL JEWELRY DETAIL No Depth ID Item 1 ±7,175 CIBP (whipstock base) 2 7,535’ZXP Liner Top Packer #265-28-0229 3 ±7,975’N/A CIBP capped w/ 25’ of cement 4 8,300’N/A CIBP capped w/ 10’ of cement 5 8,490’N/A CIBP capped w/ 10’ of cement 8,500’2.25 X-Span Patch, Btm @ 8,531’, Set 4/17/04 PERFORATION DETAIL Zone Top (MD)Btm (MD)Top (TVD)Btm (TVD)FT SPF Date Status Beluga 7,984'7,998'5,155'5,169'14'4 Isolated Beluga 8,014’8,024’5,182’5,191’10’5 1/22/16 Isolated Beluga 8,163’8,173’5,320’5,329’10’5 1/22/16 Isolated Beluga 8,227'8,261'5,380'5,412'34'4 Isolated Beluga 8,236’8,246’5,388’5,398’10’5 1/22/16 Isolated Beluga 8,320'8,353'5,467'5,498'33'4 Isolated Beluga 8,506'8,526'5,644'5,663'20'4 Patched Beluga 8,929'8,969'6,057'6,098'40'4 8/13/2010 Squeezed Beluga 9,068'9,096'6,196'6,224'28'4 Isolated Beluga 9,182'9,202'6,310'6,330'20'4 Isolated Beluga 9,295'9,315'6,423'6,443'20'4 Isolated Beluga 9,328'9,341'6,456'6,469'13'6 4/17/2004 Isolated Beluga 9,353'9,385'6,481'6,513'32'4 Isolated Beluga 9,658'9,714'6,786'6,842'56'4 Isolated Beluga 9,838'9,864'6,966'6,992'26'4 Isolated Beluga 9,942'9,976'7,070'7,104'34'4 Isolated Beluga 10,132'10,158'7,260'7,286'26'4 Isolated Beluga 10,170'10,200'7,298'7,328'30'4 Isolated Tag @ 10,553’ on 8/18/10 w/ 2.00” GR (Slickline). Casing CEMENTING DETAIL 13-3/8"16" Hole Cmt w/ 495 sks, 100% returns w/ 40 bbls to surface 9-5/8"Cmt w/ 250 sks lead (93.6 bbl) & 315 sks tail (65bbl)of class G 3-1/2”Cmt w/ 885 sks of class G. Bumped plug, floats held. CBL shows TOC @ 7756’ (casing shoe) INCLINATION DETAIL Max Hole Angle:build from 400 to 1,650' at 5 deg /100 60 deg 1,650' to 5,600' drop at 2 deg / 100 to 9'200' Final Angle:1 deg Max Doglegs (deg/100'):8.31 @ 1'181' The picture can't be displayed.The picture can't be displayed.The picture can't be displayed.The picture can't be displayed. 13-5/8"Spherical Annular Height: 46" Weight: 12,806 13-5/8"LWS Double BOP Height: 37" Width: 93" Weight 9,900 lbs. TOP RAMS 2-7/8" TO 5-1/2" MULTI- RAMS BOTTOM RAMS BLIND RAMS 13-5/8"Mud Cross W/ 4- 1/16" outlets Height:28.5" Width 31" Dual 4-1/16" Manual Gate valves W/ DSA to 2-1/16" 4-1/16" Manual Gate valve & 4-1/16" HCR W/ DSA to 2-1/16" Full Mud Cross Assy. width w/ valves installed Width: 98.5" Weight: 2200 lbs. Kill side Choke side Height Addition for Ring Gaskets: 0" BOP Total Height: 111.5" BOP Total weight: 24,906 lbs. 13-5/8" 5m BOP Package W/ 4-1/16" Valves Sundry Application Well Name______________________________ (PTD _________; Sundry _________) Plug for Re-drill Well Workflow This process is used to identify wells that are suspended for a very short time prior to being re-drilled. Those wells that are not re-drilled immediately are identified every 6 months and assigned a current status of "Suspended." Step Task Responsible 1 The initial reviewer will check to ensure that the "Plug for Redrill" box in the upper left corner of Form 10-403 is checked. If the "Abandon" or "Suspend" boxes are also checked, cross out that erroneous entry and initial it on the Form 10-403. Geologist 2 If the “Abandon” box is checked in Box 15 (Well Status after proposed work) the initial reviewer will cross out that checkbox and instead, check the "Suspended" box and initial those changes. Geologist The drilling engineer will serve as quality control for steps 1 and 2. Petroleum Engineer (QC) 3 When the RA2 receives a Form 10-403 with a check in the "Plug for Redrill" box, they will enter the Typ_Work code "IPBRD" into the History tab for the well in RBDMS. This code automatically generates a comment in the well history that states "Intent: Plug for Redrill." Research Analyst 2 4 When the RA2 receives Form 10-407, they will check the History tab in RBDMS for the IPBRD code. If IPBRD is present and there is no evidence that a subsequent re-drill has been completed, the RA2 will assign a status of SUSPENDED to the well bore in RBDMS. The RA2 will update the status on the 10-407 form to SUSPENDED, and date and initial this change. If the RA2 does not see the "Intent: Plug for Redrill" comment or code, they will enter the status listed on the Form 10-407 into RBDMS. Research Analyst 2 5 When the Form 10-407 for the redrill is received, the RA2 will change the original well's status from SUSPENDED to ABANDONED. Research Analyst 2 6 The first week of every January and July, the RA2 and a Geologist or Reservoir Engineer will check the "Well by Type Work Outstanding" user query in RBDMS to ensure that all Plug for Redrill sundried wells have been updated to reflect current status. At this same time, they will also review the list of suspended wells for accuracy and assign expiration dates as needed. Research Analyst 2 Geologist or Reservoir Engineer 1 McLellan, Bryan J (OGC) From:McLellan, Bryan J (OGC) Sent:Wednesday, January 22, 2025 10:29 AM To:'Chad Helgeson' Cc:Davies, Stephen F (OGC); Stefan Reed; Donna Ambruz; Roby, David S (OGC) Subject:RE: [EXTERNAL] CLU-07 (PTD 203-191) Plug for redrill sundry Chad, After reviewing the cement history of the liner and 9-5/8” casing, I believe the plug for redrill plan submitted in the original sundry is suƯicient to ensure permanent isolation of the gas storage pool. I have added a condition of approval to pressure test the 9-5/8” casing and liner lap after pulling tubing, before setting the 9-5/8” bridge plug to verify the integrity of the liner lap since the cement bond log indicates there may be a gap in cement across that interval. If that test fails, a cemented plug will be required in the 9-5/8” casing above the liner top. CLU well P&As will be evaluated on a case-by-case basis to ensure the integrity of CINGSA’s gas storage pool is permanently maintained. Regards Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Chad Helgeson <chelgeson@hilcorp.com> Sent: Thursday, January 16, 2025 10:34 AM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Cc: Davies, Stephen F (OGC) <steve.davies@alaska.gov>; Stefan Reed <Stefan.Reed@hilcorp.com>; Donna Ambruz <dambruz@hilcorp.com> Subject: RE: [EXTERNAL] CLU-07 (PTD 203-191) Plug for redrill sundry Bryan I understand that this is very similar decomplete to CLU-07, however the regulations do not require additional plugs above gas storage pools in cased pipe, so I did not include it the procedure we submitted. Hilcorp believes the 3-1/2” tubing that is cemented in place across the CINGSA pool provides enough isolation to prevent CINGSA gas escaping. However if the state does not think that a cemented tubing string does not prevent CINGSA gas from escaping, Hilcorp proposes the additional plug to isolate above CINGSA pool. CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. 2 To provide another layer of protection from the gas escaping, Hilcorp can install an additional 3-1/2” CIBP with 13.6ft of 17 ppg cement on this plug (at the top of the CINGSA pool at 7,720’). A 13.6ft plug will hold 7000 psi of diƯerential pressure. This provides a 3X safety factor over the reservoir pressure in CINGSA Pool. See attached info on cement used for plug. See attached updated schematic showing the additional plug. We are planning to start this workover and would like to set these plugs next week, if the sundry is approved. Regards Chad Helgeson From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Sent: Tuesday, December 3, 2024 9:34 AM To: Chad Helgeson <chelgeson@hilcorp.com> Cc: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Subject: [EXTERNAL] CLU-07 (PTD 203-191) Plug for redrill sundry Chad, This plug for redrill is very similar to the CLU-10RD Plug for Redrill sundry, where we required cement between the CINGSA pool and the sidetrack to ensure there is no way for gas to escape from CINGSA. Please propose a location and technique for placing cement between the top of CINGSA gas storage pool and the proposed whipstock depth. Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. 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DO NOT open links or attachments from UNKNOWN senders. • STATE OF ALASKA RECEIVED ALASKA OIL AND GAS CONSERVATION COMOISION MAR 21. 201 REPORT OF SUNDRY WELL OPERATIONS AOGCC 1.Operations Abandon ❑ Plu Perforations ❑ Fracture Stimulate ❑ Pull Tubing Li Operations shutdown ❑ Performed: Suspend ❑ Perforate ❑✓ Other Stimulate ❑ Alter Casing❑ Change Approved Program ❑ Plug for Redrill ❑ 8rforate New Pool ❑ Repair Well ❑ Re-enter Susp Well❑ Other: ❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development 0 Exploratory ❑ 203-191 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,AK 99503 50-133-20531-00-00 7.Property Designation(Lease Number): 8.Well Name and Number: L-0373302,ADL0324602,FEE TR73 Cannery Loop Unit(CLU)07 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A Kenai C.L.U.Field/Beluga Gas Pool 11.Present Well Condition Summary: Total Depth measured 10,864 feet Plugs measured 8,300;8,490 feet true vertical 7,992 feet Junk measured 8,504 feet Effective Depth measured 8,290 feet Packer measured 7,535 feet true vertical 5,439 feet true vertical 4,756 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 103' 20" 124' 124' Surface 1,775' 13-2/8" 1,796' 1,516' 3,450 psi 1,950 psi Intermediate 7,739' 9-5/8" 7,760' 4,953' 5,750 psi3,090 psi Production Liner 3,266' 3-1/2" 10,854' 7,992' 10,160 psi 10,530' Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic SCANNED '' ) Tubing(size,grade,measured and true vertical depth) Tie Back 3-1/2" 9.2#/L-80 7,535'MD 4,756'TVD Packers and SSSV(type,measured and true vertical depth) ZXP Liner Top Pkr;N/A 7,535'MD 4,756'TVD N/A;N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 32 320 Subsequent to operation: 0 0 0 30 70 14.Attachments(required per 20 AAC 25.070,25.071,&25.283) 15.Well Class after work: Daily Report of Well Operations 0 Exploratory El Development El Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16.Well Status after work: Oil ❑ Gas Q WDSPL❑ Printed and Electronic Fracture Stimulation Data ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG Li 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: 316-015 Contact Taylor Nasse-777-8354 Email tnasse(c hilcorp.com Printed Name Chad Helgeson Title Operations Manager Signature (,�2n7 Phone 907-777-8405 Date 2l 71, 3:23 1t /011//i Form 10-404 Revised 5/2015 RBDMS (,v MAR 2 2 2016 Submit Original Only • • Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date Cannery Loop 7 E-Line 50-133-20531-00 203-191 1/19/16 2/9/16 Daily Operations: 01/19/2016-Tuesday Meet at office. Mobe to location. PTW and JSA. Move well house with crane to position for wireline. Rig up lubricator, pressure test to 250 psi low and 2,000 psi high. RIH w/2.75" GR and junk basket.Tie into Reeves CBL log. Didn't have any problems with GR/JB.Set down on top of patch at 8,500'. Ran a correlation log and send to town. POOH. RIH with 2-1/2" OD CIBP and tie into Reeves CBL log. Set down on top of patch at 8,500' and ran correlation log and send to town.Jacob said the correlation log was 1' low but to go ahead and set plug at 8,490' without correcting. Pulled plug into position and set top of plug at 8,490' (Took 1 min 38 seconds to set). Pick up 50' and go back down and lightly tag plug. POOH. Everything looked like a good set. RIH w/2.5" x 20' dump bailer filled with 4 gals of cement and tie into Reeves CBL log.Tag plug at 8,490' and dumped 10' of cement on top of plug. TP - 350 psi, EST TOC is 8,480' and cement in place at 1500 hrs. POOH. Good dump. Looks like fluid level is around 1,250'. Rig down lubricator and will wait on cement 24 hrs before field swabs the well. 01/21/2016-Thursday PTW and JSA. Spot equipment and rig up lubricator. PT lubricator to 250 psi low and 2,000 psi high. RIH w/ bailer and tag TOC at 8,471' SLM KB. Bailed down 3 times and cement was hard. POOH. Had 2" contaminated cement and 2" hard cement. RIH w/swabbing tools and swabbed from 1,100' to 4,400'. Got out approx. 120 bbls of fluid. 01/22/2016- Friday Ran 2.75" blind box with Halliburton slickline and found fluid level at 4,230'. Had gas/water strung up hole to 1,100'. Rig down slickline. PTW and JSA. Spot equipment and rig up lubricator. Pressure test lubricator to 250 psi low and 2,000 psi high. RIH w/2-3/8" x 10' Connex, 5 spf, 60 deg perf gun and tie into Reeves CBL. Run correlation and send to town. Get ok to perf from 8,236' to 8,246' (UB-G zone) from Jacob. Fired shot with 48.5 psi and after 5 min it was 49.5 psi. POOH. All shots fired. RIH w/2-3/8" x 10' Connex, 5 spf, 60 deg perf gun and tie into Reeves CBL. Run correlation and send to town. Get ok to perf from 8,163' to 8,173' (UB-E zone) from Jason. Gun misfired. POOH. Found shorted detonator. RIH w/2-3/8" x 10' Connex, 5 spf, 60 deg perf gun and tie into Reeves CBL. Run correlation and send to town. Get ok to perf from 8,163' to 8,173' (UB-E zone) from Taylor. Fired gun with 61.5 psi and after 5 min still had 61.5 psi. POOH. All shots fired. RIH w/2-3/8" x 10' Connex, 5 spf, 60 deg perf gun and tie into Reeves CBL. Run correlation and send to town. Get ok to perf from 8,014' to 8,024' (UB-B zone) from Taylor. Fired gun with 61.5 psi and after 5 min still had 61.5 psi. POOH. All shots fired. Rig down lubricator and turn well over to field. • Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date Cannery Loop 7 E-Line 50-133-20531-00 203-191 1/19/16 2/9/16 Daily Operations: 02/09/2016-Tuesday Sign in at office. Mobe to location. PTW and JSA. Spot equipment and rig up lubricator. Have trouble getting tri-plex to ,j vo work. Pressure test lubricator to 250 psi low and 2,500 psi high.TP - 64 psi RIH w/2.75" GR and junk basket and tag fill r;,P at 8,405'. POOH. No problems. Make up 2.28" OD Magna Range plug on line. RIH with plug to 8,380' and tie into (6361) Reeves CBL log. Run correlation log and send to town. Get ok to set plug at 8,300'.Spotted top of plug at 8,300'. Set plug and line wt dropped 200 lbs when plug set approx. 21/2 min.Tried to pick up and started to gain wt (100 lbs over plug setting wt) Slacked back off to plug wt, and waited 5 min. Picked up and plug finished shearing about 200 lbs over set wt. Picked up 70' and went back down and tagged plug 8,300'. TP was 64 psi when plug was set. POOH. Setting tool looked good. Make up bailer and mix cement. RIH w/2-1/2" x 20' bailer and tie into correlation log and tag plug at 8,300'. Pick up 4' off plug and dump 4 gals of cement which should be 10' of cement on top of plug. POOH. Good dump. Cement in place at 1945 hrs. Estimated top of cement is 8,290'. Rig down lubricator and give well back to field. Wait on cement. Move equipment to CLU 11 pad. Cement sample is in Mike's office. • . Kenai CLU . 11SCHEMATIC Well: Cannery Loop Unit-07 Last Completed: 2/21/2004 iincorp Alaska,LLC API: 50-133-20531-00 RKB=42/21'AGL ... CASING DETAIL Size Type Wt/Grade/Conn ID Top Btm 20..1 ' g I 20" Conductor 129/K-55/N/A N/A Surf 124' 13 3/8" Surface 68/K-55/BTC 12.415 Surf 1,796' v. & 9-5/8" Production 40/L-80/BTC 8.835 Surf 7,760' 3-1/2" Liner 9.2/L-80/Hydril 563 2.992 7,588' 10,854' TUBING DETAIL 13-3/8" IOL3-1/2" Tubing 9.2/L-80/Butt 2.992 Surf 7,535' Jr1 r I JEWELRY DETAIL No Depth ID Item 1 2,320 N/A Chemical Injection Mandrel 2 7,535' N/A ZXP Liner Top Packer#265-28-0229 3 8,500 2.25 X-Span Patch,Btm @ 8,531',Set 4/17/04 4 8,300 N/A CIBP capped w/10'of cement V ?/k//t, 5 8,490' N/A CIBP capped w/10'of cement 7 OVA- to ,//v R wR PERFORATION DETAIL Zone Top(MD) Btm(MD) Top(ND) Btm(ND) FT SPF Date Status Beluga 7,984' 7,998' 5,155' 5,169' 14' 4 Open g Beluga 8,014' 8,024' 5,182' 5,191' 10' 5 1/22/16 Open V &` E; 2 Beluga 8,163' 8,173' 5,320' 5,329' 10' 5 1/22/16 Open .1, 4 p 1, Beluga 8,227' 8,261' 5,380' 5,412' 34' 4 Open 9-5/3" y t" 0 c. Beluga 8,236' 8,246' 5,388' 5,398' 10' 5 1/22/16 Open ✓ Beluga 8,320' 8,353' 5,467' 5,498' 33' 4 Isolated Beluga 8,506' 8,526' 5,644' 5,663' 20' 4 Patched Beluga 8,929' 8,969' 6,057' 6,098' 40' 4 8/13/2010 Squeezed Beluga 9,068' 9,096' 6,196' 6,224' 28' 4 Isolated S Beluga 9,182' 9,202' 6,310' 6,330' 20' 4 Isolated a 4 Beluga 9,295' 9,315' 6,423' 6,443' 20' 4 Isolated Beluga 9,328' 9,341' 6,456' 6,469' 13' 6 4/17/2004 Isolated Beluga 9,353' 9,385' 6,481' 6,513' 32' 4 Isolated Tag ror@s O4 '% 5 Beluga 9,658' 9,714' 6,786' 6,842' 56' 4 Isolated on 1/23/14 0 Beluga 9,838' 9,864' 6,966' 6,992' 26' 4 Isolated LL Beluga 9,942' 9,976' 7,070' 7,104' 34' 4 Isolated 3 r 1 7 Beluga 10,132' 10,158' 7,260' 7,286' 26' 4 Isolated t '. Beluga 10,170' 10,200' 7,298' 7,328' 30' 4 Isolated 1 • -700'of 3/3" 3 capillary %. tubing Casing CEMENTING DETAIL 13-3/8" 16"Hole Cmt w/495 sks, 100%returns w/40 bbls to surface ol 9-5/8" Cmt w/ 250 sks lead(93.6 bbl)&315 sks tail (65bbl)of class G r ` 3-1/2" Cmt w/ 885 sks of class G.Bumped plug,floats held. g e INCLINATION DETAIL y Max Hole Angle:build from 400 to 1,650' at 5 deg/100 60 Tag @ 10,553'on 8/18/10 deg 1,650'to 5,600'drop at 2 deg/100 to 9'200' w/2.00"GR(Slickline). Final Angle:1 deg Max Doglegs(deg/100'):8.31 @ 1'181' 3-1/2" A TD=10,864'/PBTD=10,776' Updated by DMA 02-16-16 ath Nolan Hilcorp Alaska, C GeoTech 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Tele: 907 777-8308 IEIIrnrp:1614t+ka.1.1k Fax: 907 777-8510 E-mail: snolan@hilcorp.com DATA LOGGL: /gi201G M K-BENDk-r DATE 03/04/2016 To: Alaska Oil & Gas Conservation Commission Makana Bender Natural Resource Technician II 333 W 7th Ave Ste 100 REGEIVED Anchorage, AK 99501 MAR 08 2016 DATA TRANSMITTAL AOGCC CLU 07 Plug Setting Record print and data Prints: CIBP Plug/Cement Setting Record mAR 1 5 2.0% CD1: digital data CLU-07_PLUG_09FEB16 2/12/2016 3:40 PM PDF Document 947 KB CLU-07 PLUG 09FEB16 CORRELATION P... 2/12/2016 3:40 PM LAS File 78 KB CLU-07_PLUG_09FEB16_img 2/12/2016 3:40 PM TIFF File 1;546 KB CLU-07 PLUG 09FEB1b PLUG PASS 2/12/2016 3:40 PM LAS File 50 KB CLU-07 PLUG 09FEB16 TAG PASS 2/12/2016 3:40 PM LAS File 58 KB Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By:.k1�� Date: OF T�, • • �w\��j��sA THE STATE Alaska Oil and Gas ofConservation Commission ATASKA 333 West Seventh Avenue GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 o }r' Main: 907.279.1433 ALAS' Fax: 907.276.7542 www.aogcc.alaska.gov Chad Helgeson Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 4�t `2 4 1t F Anchorage, AK 99503 Re: Kenai CLU Field, Beluga Gas Pool, Cannery Loop Unit 07 Permit to Drill Number: 203-191 Sundry Number: 316-015 Dear Mr. Helgeson: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, i'ett P941454-- Cathy P oerster ,, Chair DATED this ��-d of January, 2016. RBDMS 0- JAN 1 9 2016 • • STATE OF ALASKA JAN 0 2016 ALASKA OIL AND GAS CONSERVATION COMMISSION Dor l /44//. APPLICATION FOR SUNDRY APPROVALS AO C'' 20 AAC 25.280 1.Type of Request: Abandon ❑ Plug Perforations 0 - Fracture Stimulate ❑ Repair Well ❑ Operations shutdown❑ Suspend ❑ Perforate E 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: Hilcorp Alaska, LLC . Exploratory ❑ Development ❑✓ • 203-191 - 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic ❑ Service El 6.API Number. Anchorage,Alaska 99503 50-133-20531-00-00 7. If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? CO 231 , Cannery Loop Unit 07 - Will planned perforations require a spacing exception? Yes ❑ No ❑✓ 9. Property Designation(Lease Number): _ 10. Field/Pool(s): L-0373302,ADL0324602, FEE-TE ,'- r% Kenai C.L.U.Field/Beluga Gas Pool 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD: Effective Depth TVD: MPSP(psi): Plugs(MD): Junk(MD): 10,864' - 7,992' 10,776' 7,905' 1,815psi N/A 8,504' Casing Length Size MD TVD Burst Collapse Structural Conductor 103' 20" 124' 124' Surface 1,775' 13-2/8" 1,796' 1,516' 3,450 psi 1,950 psi Intermediate 7,739' 9-5/8" 7,760' 4,953' 5,750 psi 3,090 psi Production Liner 3,266' 3-1/2" 10,854' 7,992' 10,160 psi 10,530' Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic Tie Back 3-1/2" 9.2#/L-80 7,535' Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): ZXP Liner Top Packer;N/A 7,535'MD/4,756'TVD;N/A 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: January 22,2016 OIL ❑ WINJ ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: GAS E ' WAG ❑ GSTOR ❑ SPLUG ❑ Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Contact Taylor Nasse-777-8354 Email tnassetaahilcorp.com Printed Name Chad Helgeson Title Operations Manager Signature /� / Phone 907-777-8405 Date 1/3/i() COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number. Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: Post Initial Injection MIT Req'd? Yes ❑ No ❑ Spacing Exception Required? Yes ❑ No ❑ Subsequent Form Required: /) Li 041 F APPROVED BY Approved by: ,/ COMMISSIONER THE COMMISSION Date:/-14 ,—/b l- //c 0,„RIGII,N,A,L, RBDMS �� JAN 1 9 2016 Submit Form and Form 0-403 R visedltl/2015for 12 months from the date of approval. tta ments in D'dicate -� � � • • Well Prognosis Well: CLU-07 Ililcory Alaska,LL Date: 1/7/2016 Well Name: CLU-07 API Number: 50-133-20531-00 Current Status: Shut In Leg: N/A Estimated Start Date: Jan. 22, 2016 Rig: Reg.Approval Req'd? Yes Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 203-191 First Call Engineer: Taylor Nasse (907) 777-8354 (0) (907) 903-0341 (C) Second Call Engineer: Chad Helgeson (907) 777-8405 (0) (907) 229-4824(C) AFE Number: Maximum Expected BHP: —2,364 psi @ 5,498' TVD (Assumed 0.43 psi/ft gradient) Max. Potential Surface Pressure: — 1,815 psi (0.10 psi/ft gas gradient to surface) Brief Well Summary Cannery Loop #7 is a well that was completed in the Beluga sands. In January 2015 an attempt was made to remove the capillary string which was unsuccessful. The capillary string was cut at 8,504' and attempts were made to fish the remaining 700' without success. The well consists of 13-3/8" surface casing with 9-5/8" production casing and 3-1/2" liner with 3-1/2" tubing to surface. The purpose of this work/sundry is to set a plug above the cap string fish and perforate the Upper Beluga UB-B, UB-E, and UB-G intervals. E-Line Procedure 1. MIRU e-line and pressure control equipment. PT lubricator to 250 psi low/2,000 psi high. 2. RIH with CIBP and set at 8,490' MD. ?1)11f,, 3. RIH with bailer and dump 10' of cement. (4 gallons) ‘7 4. RD e-line. Slickline Procedure 5. MIRU SL and PT lubricator to 1,000 psi Hi 250 Low. 6. RIH w/swab cups and swab well dry. 7. RD SL. E-Line Procedure 8. MIRU e-line and pressure control equipment. PT lubricator to 250 psi low/2,0gh. a. If necessary, bleed pressure down or add pressure with natural gas as requested by the RE to establish a drawdown on the formation. 9. Perforate the Upper Beluga sands with 2-3/8" 5 SPF 60 deg phased perf guns. All intervals are planned for 10 SPF so each may be shot twice. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation. • S Well Prognosis Well: CLU-07 Hilcorp Alaska,LL Date: 1/7/2016 Proposed Perforated Intervals Sands Top (MD) Btm (MD) FT Upper Beluga UB-B ±8,014 ±8,024 ±10 Upper Beluga UB-E ±8,163 ±8,173 ±10 Upper Beluga UB-G ±8,236 ±8,246 ±10 10. POOH. 11. Flow well through test separator and record water and gas rates. 12. If any of the sands are not commercial or wet, the zone will be permanently plugged back. 13. RD a-line. Attachments: 1. Actual and Proposed Schematic . • Ke Well:nai Cannery Loop Unit-07 SCHEMATIC Last Completed: 2/21/2004 HHcorp Alaska,LLC API: 50-133-20531-00 CASING DETAIL WB=4Z/21'AGL Size Type Wt/Grade/Conn ID Top Btm 20" Conductor 129/K-55/N/A N/A Surf 124' 13-3/8" Surface 68/K-55/BTC 12.415 Surf 1,796' b [ ;b; 9-5/8" Production 40/L-80/BTC 8.835 Surf 7,760' 20" i . 3-1/2" Liner 9.2/L-80/Hydril 563 2.992 7,588' 10,854' TUBING DETAIL ,', 3-1/2" Tubing 9.2/L-80/Butt 2.992 Surf 7,535' P A d 13-3/8"4 I OL 1 JEWELRY DETAIL No Depth ID Item 1 2,320' N/A Chemical Injection Mandrel 2 7,535' N/A ZXP Liner Top Packer#265-28-0229 3 8,500' 2,25 X-Span Patch,Btm @ 8,531',Set 4/17/04 PERFORATION DETAIL v. t`. Zone Top(MD) Btm(MD) Top(ND) Btm(TVD) FT SPF Date Status ;r ,* Beluga 7,984' 7,998' 5,155' 5,169' 14' 4 Open Beluga 8,227' 8,261' 5,380' 5,412' 34' 4 Open ' Beluga 8,320' 8,353' 5,467' 5,498' 33' 4 Open Beluga 8,506' 8,526' 5,644' 5,663' 20' 4 Patched I�' }", 2 Beluga 8,929' 8,969' 6,057' 6,098' 40' 4 8/13/2010 Squeezed i<• i', Beluga 9,068' 9,096' 6,196' 6,224' 28' 4 Open to Beluga 9,182' 9,202' 6,310' 6,330' 20' 4 Open 9-5/S" . +, A " Beluga 9,295' 9,315' 6,423' 6,443' 20' 4 Open Beluga 9,328' 9,341' 6,456' 6,469' 13' 6 4/17/2004 Reperf Beluga 9,353' 9,385' 6,481' 6,513' 32' 4 Open Beluga 9,658' 9,714' 6,786' 6,842' 56' 4 Open • Beluga 9,838' 9,864' 6,966' 6,992' 26' 4 Open Tag TOF@5,504' Beluga 9,942' 9,976' 7,070' 7,104' 34' 4 Open on1/23/14 + Beluga 10,132' 10,158' 7,260' 7,286' 26' 4 Open Beluga 10,170' 10,200' 7,298' 7,328' 30' 4 Open ( w R Casing CEMENTING DETAIL ' 13-3/8" 16"Hole Cmt w/495 sks, 100%returns w/40 bbls to surface -700'of 3/5 9-5/8" Cmt w/ 250 sks lead(93.6 bbl)&315 sks tail (65bb1)of class G V� `a�ng 3-1/2" Cmt w/ 885 sks of class G.Bumped plug,floats held. , INCLINATION DETAIL Max Hole Angle:build from 400 to 1,650' at 5 deg/100 60 deg 1,650'to 5,600'drop at 2 deg/100 to 9'200' Final Angle:1 deg Max Doglegs(deg/1001:8.31 @ 1'181' 4. . I, 4,' 1, Tag @ 10,553'on 8/18/10 / x, w/2.00"GR(Slickline). i• T0 }t/2" TD=10,864'/PBTD=10,776' Updated by DMA 02-10-15 • PROPOSED • Kenai CLU . 11 Well: Cannery Loop Unit-07 SCHEMATIC Last Completed: 2/21/2004 Hilcorp Alaska,LLC API: 50-133-20531-00 CASING DETAIL RI<I 42/21'AGL Size Type Wt/Grade/Conn ID Top Btm 20" Conductor 129/K-55/N/A N/A Surf 124' } ?' 13-3/8" Surface 68/K-55/BTC 12.415 Surf 1,796' 9 5/8" Production 40/L-80/BTC 8.835 Surf 7,760' zo' i , t' 3-1/2" Liner 9.2/L-80/Hydril 563 2.992 7,588' 10,854' ' TUBING DETAIL ` ', 3-1/2" Tubing 9.2/L-80/Butt 2.992 Surf 7,535' i 13-3/8"A I 4 K 1 JEWELRY DETAIL No Depth ID Item 1 2,320 N/A Chemical Injection Mandrel 2 7,535' N/A ZXP Liner Top Packer#265-28-0229 3 8,500 2.25 X-Span Patch,Btm @ 8,531',Set 4/17/04 4 8,490' N/A CIBP capped w/10'of cement PERFORATION DETAIL Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) FT SPF Date Status Beluga 7,984' 7,998' 5,155' 5,169' 14' 4 Open ' Beluga ±8,014' ±8,024' ±5,182' ±5,191' 10' 5 TBD Proposed • HBeluga ±8,163' ±8,173' ±5,320' ±5,329' 10' 5 TBD Proposed • Beluga 8,227' 8,261' 5,380' 5,412' 34' 4 Open ttiii 2 Beluga ±8,236' ±8,246' ±5,388' ±5,398' 10' 5 TBD Proposed I Beluga 8,320' 8,353' 5,467' 5,498' 33' 4 Open Beluga 8,506' 8,526' 5,644' 5,663' 20' 4 Patched 9-5/8" 'a, Beluga 8,929' 8,969' 6,057' 6,098' 40' 4 8/13/2010 Squeezed Beluga 9,068' 9,096' 6,196' 6,224' 28' 4 _ Isolated Beluga 9,182' 9,202' 6,310' 6,330' 20' 4 Isolated Beluga 9,295' 9,315' 6,423' 6,443' 20' 4 _ Isolated Beluga 9,328' 9,341' 6,456' 6,469' 13' 6 4/17/2004 Isolated Beluga 9,353' 9,385' 6,481' 6,513' 32' 4 Isolated Beluga 9,658' 9,714' 6,786' 6,842' _ 56' 4 Isolated , , Beluga 9,838' 9,864' 6,966' 6,992' 26' 4 Isolated Tag TOF @ 8,504' ' `�., 4 Beluga 9,942' 9,976' 7,070' 7,104' 34' 4 Isolated on 1/23/14 '• :j Beluga 10,132' 10,158' 7,260' 7,286' 26' 4 Isolated $ ' Beluga 10,170' 10,200' 7,298' 7,328' 30' 4 Isolated 3 1 F A �m�3g Casing CEMENTING DETAIL 4 + cagllary 13-3/8" 16"Hole Cmt w/495 sks, 100%returns w/40 bbls to surface 1 s'a`x 9-5/8" Cmt w/ 250 sks lead(93.6 bbl)&315 sks tail (65bbI)of class G ;7, 3-1/2" Cmt w/ 885 sks of class G.Bumped plug,floats held. c T 744 ti io INCLINATION DETAIL Max Hole Angle:build from 400 to 1,650' at 5 deg/100 60 deg 1,650'to 5,600'drop at 2 deg/100 to 9'200' 4 #: Final Angle:1 deg Max Doglegs(deg/100'):8.31 @ 1'181' it a Tag @ 10,553'on 8/18/10 ag y w/2.00"GR(Slickline). n !� it3-1/2" TD=10,864'/PBTD=10,776' Updated by TWN 01-07-16 STATE OF ALASKA AL A OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon U Repair Well Lf Plug Perforations U Perforate U Other[L] Cap String Removal Performed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac ❑ Waiver ❑ Time Extension❑ Change Approved Program 0 Operat.Shutdown 0 Stimulate-Other ❑ Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development Q Exploratory ❑ 203-191 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,Alaska 99503 50-133-20531-00-00 7.Property Designation(Lease Number): 8.Well Name and Number: L-0373302,ADL0324602,FEE TI Cannery Loop Unit(CLU)07 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A Kenai C.L.U.Field/Beluga Gas Pool 11.Present Well Condition Summary: Total Depth measured 10,864 feet Plugs measured N/A (RECEIVED true vertical 7,992 feet Junk measured N/A feet FIS 110 2015 Effective Depth measured 10,776 feet Packer measured 7,535 feet true vertical 7,905 feet true vertical 4,756 feet AOGcc Casing Length Size MD TVD Burst Collapse Structural Conductor 103' 20" 124' 124' Surface 1,775' 13-2/8" 1,796' 1,516' 3,450 psi 1,950 psi Intermediate 7,739' 9-5/8" 7,760' 4,953' 5,750 psi 3,090 psi Production Liner 3,266' 3-1/2" 10,854' 7,992' 10,160 psi 10,530' Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) Tie Back 3-1/2" 9.2#/L-80 7,535'MD 4,756'ND Packers and SSSV(type,measured and true vertical depth) ZXP Liner Top Pkr;N/A 7,535'MD 4,756'ND 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 SCANNED 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 6 103 0 69 Subsequent to operation: 0 0 0 0 73 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 2 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: N/A Contact Chad Helgeson Email chelgeson(cDhilcorg.com Printed Name .1,1,/,--//:"7,77 Chad Helgeson Title Operations Manager Signature ;. 6 �'"'_ Phone 907-777-8404 Date Z/j c p5--- RBDMSAV FFR 1 1 2015 Form 10-404 Revised 10/2012 0211 45 Submit Original Only ?4,004 y-z�f"--- Hilcorp Alaska, LLC Well Operations Summary Well Name API Number Well Permit Number Start Date End Date Cannery Loop 7 50-133-20531-00 203-191 1/11/15 1/24/15 Daily Operations: 01/11/2015-Sunday Arrive location, held JSA and tailgate safety meeting, inspect area, spot liner and truck, Rig up injector to tubing, land injector on tree. PSI stake system to 1,500#, PSI control line to 3,000#, set counter, leak check. POOH, string stuck, pulled to 4,000#, no movement. Rig up crane, pulled 50'-60'. Attempt to pull with injector. 10'-15' strech. Pulled to 4,000#, no movement. Rig up crane, pulled approx. 20'. String broke bellow lifting slips. Rig down, leave location. 01/17/2015-Saturday Arrive CLU, Safety Meeting w/production. Rig up. PSI test lub 2,000 psi &wlv-fix leak. RIH w/2.8" lib to 47' kb, tag, POOH, lib shows CAP string against tubing wall. RIH w/3" gf w/internal bait sub w/3/8" overshot w/2.8" bell guide to 47' kb, latch, hit several 1,600#jar licks, came free, POOH, pin sheared. RIH w/same, latch, hit 2 jar licks, wire broke, POOH. RIH w/2.8" LIB to 48' kb, set down, POOH, line against tubing wall. RD and clean area, Depart CLU. 01/18/2015-Sunday _ Arrive CLU, Safety meeting w/Ops. RU, PSI test lub 2,000 psi &wlv, good test. RIH w/2.85" GR to 47' kb, work to 51' kb, POOH, GR shows CAP line straight. RIH w/3" GS w/ internal sub w/3/8" overshot w/ 2.8" bell guide to 47' kb, latch, hit 2 1,700#jar licks, come free, POOH, pin sheared. RU: 160 wire. RIH w/3" GS to 42' kb, latch bait sub, pull up to 3,300#, line moving, hung up at 4' kb, beat 1 hr @ 4,100#, can't pull, try to shear off, couldn't shear, continue oil jar licks and get free, POOH, dogs rolled on GS. RU .25" braided cable. RIH w/3" PR to 11' kb, latch bait sub, hit jars licks up to 7,200#, work jars 1 hr, no movement, pull to 7,400#came free, POOH, 1 ft piece of line. Lay down lub, secure well, clean area, depart location. 01/19/2015 - Monday Ary CLU,JSA with Production. Rig up, pressure test lub and wlv test good. RIH w/3" GR w/internal bait sub, 3/8" overshot, 2.80" bell guide to 51' kb latch control line hit 7,200#jar licks came free, POOH, pulled top sub off oil jars. Stand by for 1- 3/4" overshot to come out. RIH w/ 1-3/4" overshot, w/2-1/2" bell guide to 19' kb latch shear gs, POOH, have fish. RIH w/3" GR w/internal bait sub, 3/8" overshot w/2.80" bell guide to 19' kb latch control line, pull up to 6,400#, standby for hot oil truck to come out. Keep 6,800#while pumping water slowly, started moving, keep bind on it. Still moving slowly pull up to 7,400#, wire broke. Discuss with company man. RIH W/2-1/2"jdc to 37' kb latch tools, POOH, have 3' piece of control line and tool string. Rig down and clean up area for night. Depart Cannery Loop. 01/20/2015-Tuesday Arrive at KGF, discuss job w/foreman. Arrive at CLU, start equipment, air lines froze up on unit, get heater on it. Rig up, pressure test lub &wlv, test good. RIH w/3" gr w/internal bait sub w/3/8" overshot w/2.80" bell guide to 51' kb, couldn't latch, POOH. RIH the same w/except put a spear on, hit two jar licks, came free, POOH. RIH w/same to 37', couldn't latch, POOH. RIH w/three prong, grab to 37', could grab keep getting 800#over pulls, POOH. RIH w//3"gr w/internal bait sub w/ 3/8" overshot w/2.80" bell guide to 37'kb, latch cap string, pull up to 6,800#, get it moved up to tree pulling heavy keep 6,800# bind on it,finally get it over 3/8" bind rams, close on cap string, get clamp set, put cap on cap string. Discuss with company man. Secure well and clean up area for night. Depart CLU. Hilcorp Alaska, LLC Well Operations Summary Well Name API Number Well Permit Number Start Date End Date Cannery Loop 7 50-133-20531-00 203-191 1/11/15 1/24/15 Daily Operations: 01/22/2015 -Thursday ARR at pad, pipes frozen, put heat on tree. Rig up and p/t to 2,000 psi, take on 65 bbl produced water. Start pumping @4.2 bbl/min @1,200 psi, down on pump, stand by for more water. Pump @ 4.2 BBL/MIN @1,400 ps,i pump for 1 min then down 30 sec, repeat. Down on pump, stand by for more water. Start pumping @4.2 bbl/min @1,400psi pump for 1 min then down 30 sec, repeat, down on pump, stand by for more water. Take non 60bbl produced water, stand by for wire line. Start pumping to pump down Kinley cutter @ 4bbl/min @1,400 psi, rig down pickel truck. 01/23/2015- Friday Arrive at Cannery Loop discuss w/ production. Start and warm up equipment. Rig up to start to pull cap string out of well. Start pulling cap string pulled out of clamp and went back into well. Rig up slickline. Pressue test lub & wlv test good. RIH w/ 3/8" overshot w/2.80" bell guide to 31' kb latch control line stuck hold bind while the hot oil. truck pumps down well get free pooh w/cap string. Double clamp cap string and get ready to pooh w/cap string . Start pooh w/cap string pull out 8,560' of cap string rig spooling device down and rig slickline back up. RIH w/2 1/2"jdc to 8,501' kb latch kindley cutter pooh have cutter. RIH w/2" LIB to 8,504' kb tag pooh LIB shows patch w/cap string on the side of it. Rig down for the night secure equipment and well. Depart Cannery Loop. 01/24/2015-Saturday Arrive at Cannery Loop discuss w/ production. Start and warm up equipment. Rig up. Pressure test lub &wlv test good. RIH w/3" gr w/internal bait sub w/overshot w/ 1.86 bell guide to 8,504' kb couldn't latch setting on patch. POOH. RIH w/same but add a knuckle between overshot & bell guide to 8,504' kb same results. POOH. Standby for bigger bell guide to get done at machine shop. RIH w/ 3" gr w/ internal bait sub w/overshot w/2.20" bell guide to 8,504' kb same results. POOH. Have helper put a tappered edge on bell guide. RIH w/same but add a knuckle between overshot & bell guide to 8,504' kb same results. POOH. Rig down for night secure well & equipment. Depart Cannery Loop. Kenai CLU .4, ti Well: Cannery Loop Unit-07 r SCHEMATIC Last Completed: 2/21/2004 Hitcorp Alaska,LLC API: 50-133-2531-00 CASING DETAIL azizrACL Size Type Wt/Grade/Conn ID Top Btm 20" Conductor 129/K-55/N/A N/A Surf 124' 13-3/8" Surface 68/K-55/BTC 12.415 Surf 1,796' 9-5/8" Production 40/L-80/BTC 8.835 Surf 7,760' a 3-1/2" Liner 9.2/L-80/Hydril 563 2.992 7,588' 10,854' TUBING DETAIL 3-1/2" Tubing 9.2/L-80/Butt 2.992 Surf 7,535' 13-3/8" 1 JEWELRY DETAIL No Depth ID Item 1 2,320' N/A Chemical Injection Mandrel 2 7,535' N/A ZXP Liner Top Packer#265-28-0229 3 8,500' 2.25 X-Span Patch,Btm @ 8,531',Set 4/17/04 PERFORATION DETAIL Zone Top(MD) Btm(MD) Top(ND) Btm(TVD) FT SPF Date Status Beluga 7,984' 7,998' 5,155' 5,169' 14' 4 Open Beluga 8,227' 8,261' 5,380' 5,412' 34' 4 Open SII Beluga 8,320' 8,353' 5,467' 5,498' 33' 4 Open Beluga 8,506' 8,526' 5,644' 5,663' 20' 4 Patched 2 Beluga 8,929' 8,969' 6,057' 6,098' 40' 4 8/13/2010 Squeezed i' Beluga 9,068' 9,096' 6,196' 6,224' 28' 4 Open Beluga 9,182' 9,202' 6,310' 6,330' 20' 4 Open 9-5/g' A k Beluga 9,295' 9,315' 6,423' 6,443' 20' 4 Open Beluga 9,328' 9,341' 6,456' 6,469' 13' 6 4/17/2004 Reperf Beluga 9,353' 9,385' 6,481' 6,513' 32' 4 Open Beluga 9,658' 9,714' 6,786' 6,842' 56' 4 Open - Beluga 9,838' 9,864' 6,966' 6,992' 26' 4 Open Tag 101-@8,504' Beluga 9,942' 9,976' 7,070' 7,104' 34' 4 Open °"1J2/14T Beluga 10,132' 10,158' 7,260' 7,286' 26' 4 Open Beluga 10,170' 10,200' 7,298' 7,328' 30' 4 Open 3 Casing CEMENTING DETAIL 13-3/8" 16"Hole Cmt w/495 sks, 100%returns w/40 bbls to surface 103 of 3/8" 9-5/8" Cmt w/ 250 sks lead(93.6 bbl)&315 sks tail (65bb1)of class G capillary tubing 3-1/2" Cmt w/ 885 sks of class G. Bumped plug,floats held. INCLINATION DETAIL Max Hole Angle:build from 400 to 1,650' at 5 deg/100 60 deg 1,650'to 5,600'drop at 2 deg/100 to 9'200' Final Angle:1 deg Max Doglegs(deg/100'):8.31 @ 1'181' Tag @ 10,553'on 8/18/10 `.,_____---- w/2.00"GR(Slickline). TD S 10,864'/PBTD=10,776' Updated by DMA 02-10-15 ) ) Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. ~ Q 3> - L q L Well History File Identifier Production Scanning Stage 1 Page Count from Scanned File: c¡ S (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: V YES Date: 3 / J.II 0 r;, If NO in stage 1, page(s) discrepancies were found: Organizing (done) o Two-sided 11111111I" ""1111 RESCAN ~olor Items: D Greyscale Items: DIGITAL DATA D Diskettes, No. D Other, Norrype: D Poor Quality Originals: D Other: NOTES: BY: [ Maria) ~ Date::~ à/ 00 Project Proofing BY: r; Maria) Date: 3 d.1 ~ n(p I ~ X 30 = c: 0 Date: ~::J-/ ,'0 In Scanning Preparation BY: (Maria ) BY: C Mari~.) Stage 1 BY: Maria Date: Scanning is complete at this point unless rescanning is required. ReScanned BY: Maria Date: Comments about this file: o Rescan Needed 1111 1111111111 1 OVERSIZED (Scannable) D Maps: D Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) D Logs of various kinds: D Other:: m·J 11I1111111111111 /s/ rnj + 4- = TOTAL PAGES ': 4 (Count does not include cover sheet) v1A Q /s/ I r t 111111111111111111I /s/ /s/ NO mp YES NO /s/ 111111 II 11111111111 111111111111111111I /s/ Quality Checked 111111111111" I1II1 1 0/6/2005 Well History File Cover Page. doc • Marathon Alaska Production L• (i \ \ Alaska Asset Team n M Oil P.O. Box 1949 Marathon Kenai, AK 99611 Telephone (907) 283 -1371 Fax (907) 283 -1350 March 30, 2012 S� D APRC) 52U2 ! k - Cathy Foerster 1 RECEIVED Alaska Oil & Gas Conservation Commission 333 W 7 Ave Anchorage, Alaska 99501 APR D 3 20 Alaska Cii & Gas Cons. Commission Anchorage Reference: 10 -404 Report of Sundry Well Operations Field: Cannery Loop Field ) 3 I { 1 Well: Cannery Loop Unit #7 Dear Ms Foerster, Attached for your records is the10 -404 Report of Sundry Well Operations for CLU -7 well. This report covers the MIT testing work performed in preparation for gas injection into the CINGSA Gas Storage project. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, .Qitrv�.i ` g 6 - Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10 -404 Report of Sundry Well Operations cc: Houston Well File MIT Test form Kenai Well File (2) KJS STATE OF ALASKA ` ALAI, OIL AND GAS CONSERVATION COMM ION • REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon H Repair Well Li Plug Perforations Li Stimulate H Other U MIT Test Performed: Alter Casing ❑ Pull Tubing ❑ Perforate New Pool ❑ Waiver Time Extension ❑ Change Approved Program ❑ Operat. Shutdown ❑ Perforate ❑ Re -enter Suspended Well ❑ 2. Operator 4. Well Class Before Work: 5. Permit to Drill Number: Name: Marathon Alaska Production LLC Development El Exploratory - 203 - 191 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: Kenai Alaska, 99611 -1949 50 133 - 20531 - 00 - 00 7. Property Designation (Lease Number): 8. Well Name and Number: L 0373304 ADL 0324602, FEE -TI Cannery Loop Unit #7 9. Field/Pool(s): -- - Cannery Loop Field / Beluga Pool '� 10. Present Well Condition Summary: RECEIVED I Total Depth measured 10,864' feet Plugs measured 6 NA A t 6, q true vertical 7,992' feet Junk measured NA feet ' I t Effective Depth measured 10,776' feet Packer measured . true vertical 7,905' feet true vertical 4,756' ,�'i�il f CQflii iSSI ®C' Casing Length Size MD TVD Burst Collapse Structural Conductor 103' 20" 124' 124' Surface 1,775' 13 -3/8" 1,796' 1,516' 3,450 psi 1,950 psi Intermediate 7,739' 9 -5/8" 7,760' 4,953' 5,750 psi 3,090 psi Production Liner 3,266' 3 -1/2" 10,854' 7,992' 10,160 psi 10,530 psi Perforation depth: Measured depth: 7,984' - 10,200' feet True Vertical depth: 5,154' - 7,328' feet Capillary 3/8" 2205 Stainless Steel 9,390' MD 6,518' TVD Tubing (size, grade, MD & ND): Tie -back 3 -1/2" L -80 7,535' MD 4,756' TVD SSSV: NA NA MD NA TVD Packers and SSSV (type, MD & TVD): Packers: ZXP Liner -top 7,535' MD 4,756' TVD 11. Stimulation or cement squeeze summary: Intervals treated (measured): Performed MIT test in preparation for the CINGSA gas storage pro�t. Treatment descriptions including volumes used and final pressure: / 1 12. Representative Daily Average Production or Injection Data Oil -Bbl Gas -Mcf Water -Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 2,300 188 0 293 Subsequent to operation: 0 1,900 192 0 297 13. Attachments: 14. Well Class after work: Copies of Logs and Surveys Run Exploratory ❑ Development 0 • Service ❑ Stratigraphic ❑ Daily Report of Well Operations 15. Well Status after work: Oil ❑ Gas = U WDSPL ❑ GSTOR❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP ❑ SPLUG 16. 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: 312 -028 Contact Kevin Skiba (907) 283 -1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Representative Signature ` K.QA1u" —, Phone (907) 283 - 1371 Date March 30, 2012 RB MS APR 0 4 2012k —Y— f L Form 10 -404 Revised 10/2010 Submit Original Only • • • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Mechanical Integrity Test Submit to: jim.regqalaska.00v; doa .aogcc.prudhoe.bavCa)alaska.gov phoebe.brooks(&alaska.clov; tom.maunder(a�alaska.gov OPERATOR: Marathon Oil Co. FIELD / UNIT / PAD: KGF /Cannery Loop DATE: 03/01/12 OPERATOR REP: Mike Sulley AOGCC REP: Matt Herrera Packer Depth Pretest Initial 15 Min. 30 Min. 45 Min. 60 Min. Well CLU 7 Type Inj. NA TVD 4952' Tubing 320 324 324 324 Interval 0 P.T.D. 203 -191 _ Type test P • Test psi 500 Casing 75 560 560 560 P/F P Notes: *9 - 5/8" shoe OA 0 0 0 0 Took 45 gas to fill. Recovered 42 gals. Well Type Inj. TVD Tubing Interval P.T.D. Type test Test psi Casing P/F Notes: OA Well Type Inj. ND Tubing Interval P.T.D. Type test Test psi Casing P/F Notes: OA Well Type In). ND Tubing Interval P.T.D. Type test Test psi Casing P/F Notes: OA Well Type Inj. ND Tubing Interval P.T.D. Type test Test psi Casing P/F Notes: OA TYPE INJ Codes TYPE TEST Codes INTERVAL Codes D = Drilling Waste M = Annulus Monitoring I = Initial Test G = Gas P = Standard Pressure Test 4 = Four Year Cycle I = Industrial Wastewater R = Internal Radioactive Tracer Survey V = Required by Variance N = Not Injecting A = Temperature Anomaly Survey T = Test during Workover W = Water D = Differential Temperature Test 0 = Other (describe in notes) This well is a producer. Testing 3 -1/2 x 9 -5/8" annulus. Test was performed in accordance w/ Storage Injection Order NO. 9, Rule 5 Sundry Number 312 -028 Form 10 -426 (Revised 06/2010) MIT CLU 03 MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission DATE: Monday, March 12, 2012 TO: Jim Regg 3 1' 3 1 (1 - v SUBJECT: Mechanical Integrity P.I. Supervisor g tY Tests MARATHON OIL CO 07 FROM: Matt Herrera CANNERY LOOP UNIT 07 Petroleum Inspector Src: Inspector Reviewed By: P.I. Supry — NON- CONFIDENTIAL Comm Well Name: CANNERY LOOP UNIT 07 API Well Number: 50- 133 - 20531 -00 -00 Inspector Name: Matt Herrera Insp Num: mitMFH120307101759 Permit Number 203 -191 -0 Inspection Date: 3/1/2012 Rel Insp Num: Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min Well 07 ' Type Inj. N ' TVD IA T 75 560 - 560 . 560 . PTD 2031910 - TypeTest SPT Test psi , 500 - OA 1 1 T Interva OTHER P/F P - [Tubing 1 320 1 324 7 324 1 324 _ Notes: Monobore completion NO OA. MIT performed for CINGSA order no. 9,Sundry 312 -028. - SLAWNED JUCN 1 ' L°VL Monday, March 12, 2012 Page 1 of 1 ' • u OF SEAN PARNELL, GOVERNOR �T` CONSERVATION ALASKA OIL AND +�+GAST 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMIISSIO1` ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Kevin J. Skiba Regulatory Compliance Representative a03-191 Marathon Alaska Production, LLC P.O. Box 1949 Anchorage, AK 99611 -1949 �_...._ Re: Cannery Loop Field, Beluga Pool, Cannery Loop Unit #7 Sundry Number: 312 -028 Dear Mr. Skiba: StANNED E r.. < < t z3 lL. 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, Daniel T. Seamount, Jr. Chair DATED this ` 7 day of February, 2012. Encl. Marathon Alaska Production LLC • 1I 1`. Alaska Asset Team Marathon Oil P.O. Box 1949 Kenai, AK 99611 Telephone (907) 283 -1371 Fax (907) 283 -1350 January 19, 2012 V Mr. Daniel Seamount JAN %' ?Op? Alaska Oil & Gas Conservation Commission 333 W 7 Ave :� �.: 7ss s(L$, i;OMMiSSirift Anchorage, Alaska 99501 Reference: 10 -403 Application for Sundry Approvals Field: Cannery Loop Field Well: Cannery Loop Unit #07 Dear Mr. Seamount, Submitted for your approval is the10 -403 Application for Sundry Approvals for CLU -07 well. Marathon proposes to perform a Mechanical Integrity Test of the wellbore to comply with the Storage Injection Order No. 9, Rule 5: Demonstration of Mechanical Integrity. Please find attached the Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) Mechanical Test Plan which provides a summary and background for the test, the details that relate to the subject well, and a current wellbore schematic, depicting the Sterling C1 interval depths. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, -Q/tTA Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10 -403 Application for Sundry Approvals cc: AOGCC CINGSA SIO 9 Mechanical Integrity Test Plan Houston Well File Current Well Schematic Kenai Well File (2) KJS • N STATE OF ALASKA _.. el ALASKWL AND GAS CONSERVATION COMMISSIW JAN 3 2012 a, /� /� I it APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 . Jx it '':6 tit Liat iOInS. (Ammon 1. Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair well ❑ &M11( i oved program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Specify: Time Extension ❑ Operational shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter casing ❑ Other: Perform MIT Test . El 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Marathon Alaska Production LLC Development • , Exploratory ❑ 203 - 191 ' 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: Kenai Alaska, 99611 -1949 50 - 133 - 20531 - 00 - 00 . 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ❑ No D Cannery Loop Unit #7 9. Property Designation (Lease Number): 10. Field / Pool(s): ADL- 0373302, ADL- 0324602, FEE -TR73 Cannery Loop Field / Beluga 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): 10,864' , 7,992' , 10,776' 7,905' NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 103' 20" 124' 124' Surface 1,775' 13 -3/8" 1,796' 1,516' 3,450 psi 1,950 psi Intermediate 7,739' 9 -5/8" 7,760' 4,953' 5,750 psi 3,090 psi Production Liner 3,266' 3 - 1/2" 10,854' 7,992' 10,160 psi 10,530 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 7,984' - 10,200' 5,154' - 7,328' Capillary 3/8" 2205 Stainless Steel 9,390' Tie -back 3 -1/2" L -80 7,535' Packers and SSSV Type: SSSV: NA Packers and SSSV MD (ft) and TVD (ft): NA NA Packers: ZXP Liner - top Packer: 7,535' 4,756' 12. Attachments: Description Summary of Proposal Eil 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Development Q - Service ❑ 14. Estimated Date for 15. Well Status after proposed work: February 1, 2012 Commencing Operations: Oil ❑ Gas 0 I WDSPL ❑ Suspended ❑ 16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 -1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Representative Signature hone (907) 283 -1371 Date January 19, 2012 <' COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 1 7 Oa Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test Location Clearance ❑ Other: , i ,� S p P Subsequent Form Required: / 0 ` ( 40 4 APPROVED BY Approved b : 4 COMMISSIONER THE COMMISSION l PP Y ISSION D�� 17 RE3DMS FEB 21 2,01 2 - ° 47 -. ��,7/ "Z- ORIGINAL Form 10 -403 Revised 1/2010 Submit in Duplicate • • Cook Inlet Natural Gas Storage Alaska, LLC Proposed Mechanical Integrity Test Plan Cannery Loop Sterling C Gas Storage Pool Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) requested by application dated July 27, 2010, a storage injection order from the Alaska Oil and Gas Conservation Commission (AOGCC) authorizing injection for the underground storage of natural gas in the Sterling C Gas Storage Pool of the Cannery Loop Unit. The AOGCC held a public hearing on October 19 -20, 2010 during which CINGSA presented oral and written testimony concerning the project. By Order, the AOGCC issued Storage Injection Order No. 9 (SIO 9) dated November 19, 2010, granting CINGSA the authority to commence the injection of gas for underground storage subject to certain Conclusions and Rules, all as more fully outlined in SIO 9. Two of the key requirements imposed on CINGSA as a condition of SIO 9 are that CINGSA 1) demonstrate the mechanical integrity of all storage injection wells and existing pool wells before injection commences (Rule 5 Demonstration of Mechanical Integrity), and 2) maintain surveillance of operating parameters for storage and offset wells to provide continued assurance that gas remains confined to the Sterling C Gas Storage Pool (Conclusion 8). Following, is the methodology CINGSA proposes to employ to demonstrate the mechanical integrity of all existing pool wells and maintain continued surveillance of the Pool to assure that gas remains confined to the Sterling C Pool. All new gas storage wells will be tested in accordance with 20 AAC 25.412 (c)(d). CINGSA proposes to satisfy the requirements of Conclusion 8 and Rule 5 of SIO 9 through routine monitoring of the annulus pressure of existing wells, and via pressure testing the annulus of certain wells to demonstrate their mechanical integrity, plus the tubing string of certain other wells. Table 1 provides a summary of the scope of CINGSA's proposed measures to satisfy the requirements of Conclusion 8 and Rule 5. The rationale for monitoring pressure of certain annuli and performing a mechanical integrity test is more fully summarized for each individual well below. Table 2 provides a depth reference to the Sterling C1 interval, from Sterling C1 Top to U. Beluga Top, by well. Routine monitoring and recording of annulus pressure will help identify whether any gas may be leaking from the Sterling C Pool or other formations. CINGSA proposes a monthly monitoring and reporting frequency to satisfy the requirements of Conclusion 8. CINGSA proposes to conduct a mechanical integrity pressure tests on the annulus of the wells listed in Table 1 to satisfy the requirements of Rule 5. CINGSA proposes a maximum test pressure of 500 psi for 30 minutes since most of the wells are not completed with tubing set on a packer, and thus, are not in the same configuration contemplated in 20 AAC 252. • Table 1 Proposed Routine Monitoring and Mechanical Integrity Test Plan Cook Inlet Natural Gas Storage Alaska, LLC Well Name Current Status Annulus for MIT Routine Monitor Annulus CLU 1RD Producing 4 1/2 x 7 4 1/2 x 7 and 7 x 9 5/8 CLU 3 Inactive 3 1/2 x 9 5/8 3 1/2 x 9 5/8 CLU 4 Inactive 3 1/2 x 13 5/8 3 1/2 Tbg, 3 1/2 x 13 5/8, and 13 5/8 x 20 CLU 5 Inactive 3 1/2 Tbg x 9 5/8 3 1/2 Tbg, 3 1/2 x 9 5/8, and 9 5/8 x 13 3/8 CLU 6 P & A Sterling C 4 1/2 Tbg 41/2 tbg and 41/2 x 7 CLU 7 c/ Producing 3 1/2 x 9 5/8 3 1/2 x 9 5/8 and 9 5/8 x 13 3/8 CLU 8 Producing 3 1/2 x 9 5/8 3 1/2 x 9 5/8 and 9 5/8 x 13 3/8 CLU 9 Producing 3 1/2 x 9 5/8 3 1/2 x 9 5/8 and 9 5/8 x 13 3/8 CLU 10 Planned P & A 3 1/2 Tbg and 3 1/2 x 9 5/8 3 1/2 x 9 5/8 and 9 5/8 x 13 3/8 CLU 11 Producing 3 1/2 x 9 5/8 3 1/2 x 9 5/8 and 9 5/8 x 13 3/8 CLU 12 P & A'd Sterling C None 9 5/8 Csg Table 2 Cannery Loop Wells, Sterling C interval, Sterling C1 Top to U. Beluga Top Well Name Sterling C depth interval. MD Sterling C depth interval, TVDSS CLU 1RD 5815 -6155 -4927 to -5155 CLU 3 5313 -5574 -4963 to -5205 CLU 4 5171 -5409 -4971 t0 -5198 CLU 5 6063 -6300 -4856 to -5081 CLU 6 / 7782 -8114 -4876 to -5099 CLU 7 a/ 7700 -7965 -4858 to -5095 • CLU 8 6690 -6945 -4871 to -5101 CLU 9 5942 -6195 -4860 to -5102 CLU 10 5372 -5614 -4883 to -5125 CLU 11 6281 -6537 -4876 to -5113 CLU 12 7264 -7522 -4920 to -5158 • • CLU 7 CLU 7 is currently completed to the Beluga via a 3 -1/2" production liner and a 3 -1/2" tie -back tubing string with a capillary string installed. According to Marathon, the well is currently producing at a high water rate making sustaining production challenging. The 31/2" string is set inside of 9 5/8" casing, which was set at 7760 ft MD. The Sterling interval extends from 7700 -7965 ft MD, thus, the upper portion of the Sterling is behind the 9 5/8" casing and the remainder is behind the 31/2" production liner. Proposed Annuli to configure for routine pressure monitoring: • 3- 1/2 "x9 -5/8" tubing head • 9 -5/8 "x13 -3/8" casing head Proposed Mechanical Integrity Test Procedure: • Perform a 500 psi pressure of test of the 3 %" x 9 5/8" annulus to confirm the integrity of the Liner top packer at 7535 ft MD, which is above Sterling interval. CINGSA proposes a 30 minute test duration with no more than a 10 percent change in pressure during that time interval being required for a valid test. • The proposed pressure test will apply an approximate differential of 2059 psi at 7535 ft MD/4756 ft TVD, per the following assumptions: an approximate 500 psi internal tubing pressure at TVD; a fresh water hydrostatic gradient in the annulus, and the 500 psi of applied surface pressure. • A test of the 9 5/8" x 13 3/8" annulus is not recommended since it would most likely serve as a leak off test of the surface casing shoe at 1793 ft MD 6 • Permit #: 203 -191 C L U - 7 .`�/ `` API #: 50- 133 - 20531 -00 -00 III Property Des: ADL- 0373302 Pad 1 Marathon oil ADL 0324602 184' FSL, 194' FEL FEE -TR73 Sec. 7, T5N, R11 W, S.M. Alaska Production LLC . KB Elevation: 42' RKB (21' AGL) Lat: 60 °532211 Long: - 151 °261626 Conductor: X: 272,776.575' 20" K -55 t29ppf Y: 2,388,631.433' To Bottom Spud Date: 12/20/2003 TVD 0 124' TD Reached: 01/13/2004 124' Riq Released: 01/21/2004 @ 18:00 hrs PA #: Surf MD TVD ace Casing: 0 ' ' 13 -3/8" K55 68 ppf BTC I Top 00' Bottom ' 796 " ,516 16" Hole Cmt w/ 495 sks, 100% returns Tree cxn = 4 -3/4" Otis w/ 40 bbls to surface I Intermediate Casing: Tie -back Tubing: 9 -5/8" L -80 40 ppf Butt 3-1/2" L -80 9.2 ppf Buttress Tom Bottom "lap Bottom MD 0' 7,760' MD 0' 7,535' TVD 0' 4,952' TVD 0' 4,756' Cmt w/ 250 sks lead (93.6 bbl) & 315 sks tail 3.5" chemical Injection Mandrel @ 2,320' MD, (65bb1)of class G 1,781' TVD with 1/4 ", 0.049 ", SS control line for - Tl ' - Methanol injection r Liner: I 3 -1/2" L -80 9.2 ppf Hydril 563 ' L1i _ - 1 Top Bottom MD 7,588' 10,854' ZXP liner-top packer # 265 -28 -0229 top at 7,535' MD St erlin g C1 P P P Interval: TVD 4,802' 7,992' 7700 -7965 ft MD Cmt w/ 885 sks of class G. Bumped plug, floats held. ((ax Hole Angle: build from 400 to 1,650' at 5 oeg /100 60 deg 1,650' to 5,600' V op at 2 deg / 100 to 9'200' Capillary Tubing (Installed 8/24/2010) 1 )"inal Angle: 1 deg 3/8" OD 2205 Stainless Steel 0.049" Wall Thicknes Max Doglegs (deg/100'): 8.31 @ 1'181' Top Bottom _ MD 0' 9,390' TVD 0' 6,518' C Owen isolation Patch 1 3.5" X -Span patch set on 4/17/04 (min I.D. 2.25 ") - Beluga Perforations: Top of patch at 8,500.3', bottom at 8,531.0'. 2.375" HSD, 4spf, 60 deg, 9.Ogrm Isolating perforations at 8,506' - 8,526' 7,984' - 7,998' - II 8,227' - 8,261' 8,320' - 8,353' 8,506' 8,526' Isolated w/ Owen patch A C 8,020' 8,060' Polymer squeeze (8/13/10) 9,068' - 9,096' 9,182' - 9,202' Tag Fill @ 10,553' (8/18/10) 9,295' - 9,315' 2.00" GR on slickline 9,328' - 9,341' reperf 4/17/04, 2.5" 6spf, 60° 9,353' - 9,385' 9,658' - 9,688' 1- 11/16" Shogun 4 spf ` 9,699' - 9,714' 1- 11/16" Shogun 4 spf 9,838' - 9,864' 1- 11/16" Shogun 4 spf 9,942 - 9,976' 1- 11/16" Shogun 4 spf 10,132' - 10,158' 1- 11/16" Shogun 4 spf TD PBTD 10,170' - 10,200' 1- 11/16" Shogun 4 spf 10,864' MD 10,776' MD 7,992' TVD 7,905' TVD Well Name & Number: Cannery Loop Unit # 7 Lease: Cannery Loop Unit Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 7,984' - 10,200' Perf (TVD): 5,255' - 7,328' Angle A KOP & Depth: - 60.5° A 250' MD Angle A Perfs: 24° -o 1° Date Completed: 2/21/2004 Ground Level: 21' (AMSL) RKB: 21' (AGL) Revised by: Kevin Skiba Revision Date:_ 11/29/11 t • Marathon dAdRdTHON Alaska PraCluctian LLB September 2, 2010 ~~~ C Mara~Fion Alaska Production LLC Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 AEI' ~' ~~ ~-' Mr. Winton Aubert ~~~~~~~"` ~~ r~:7!~~:~~:~.~t~~~3e .:..,;° Alaska Oil & Gas Conservation Commission ;`~_°°'~~' ~``~ ~~~~~ 333 W 7th Ave Anchorage, Alaska 99501 ~ ~~ ~ =~,~ f ~~~ ~,o~ Reference: 10-404 Report of Sundry Well Operations Field: Cannery Loop Unit Well: Cannery Loop Unit #7 Dear Mr. Aubert: Attached for your records is the10-404 Report of Sundry Well Operations for CLU-7 well. This report covers the work performed to isolate the 8,929'-8,969' MD perforations with a 23 bbl polymer squeeze and install a 3/8" capillary string. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, 4 `~ .-+~%~ Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10-404 Report of Sundry Well Operations Well Schematic Operations Summary cc: Houston Well File Kenai Well File KJS ~.~'-~~~ STATE OF ALASKA LA ~ AND GAS CONSERVATION COMMISSI~ °tfo'tlZoto ~~~ ~d~~T OF SUNDRY WELL OPERATIONS ~~ -~ ~ t ~' . y ~~ission 1. Operations ""R ~ndon Repair Well Plug Perforations Stimulate Other ~ Polymer Squeeze Performed: Alter Casing ~ ~'" -ik ull Tubing ^ Perforate New Pool ^ Waiver^ Time Extension ^ $,929'-8,969' MD Change Approved Program ^ Operat. Shutdown ^ Perforate ^ Re-enter Suspended Well ^ perforations 2. Operator 4. Well Class Before Work: 5. Permit to Dtill Number: Name: Marathon Alaska Production LLC Development Q Exploratory^ ~ 203-191 3. Address: PO Box 1949 Stratigraphic ^ Service ^ 6. API Nntmber: Kenai Alaska, 99611-1949 \ 50-133-20531-00-00 7. Property Designation (ease Number): ~ 8. Well Name and Number: v L-0373302, ADL-0324602, FEE-TI Canne Loo Unit #7 9. Field/Pool(s): Cannery Loop Field /Beluga Pool 11. Present Well Condition Summary: Total Depth measured 10,864' feet Plugs (measured) NA feet true vertical 7,992' feet Junk (measured) NA feet Effective Depth measured 10,776' feet Packer (measured) 7,535' feet true vertical 7,905' feet (true vertical) 4,756' feet Casing Length Size MD TVD Burst Collapse Structural Conductor 103' 20" 124' 124' Surface 1,775' 13-3/8" 1,796' 1,516' 3,450 psi 1,950 psi Intermediate 7,739' 9-5/8" 7,760' 4,953' 5,750 psi 3,090 psi Production Liner 3,266' 3-1 /2" 10,854' 7,992' 10,160 psi 10,530 psi Perforation depth: Measured depth: 7,984' - 10,200' True Vertical depth: 5,154' - 7,328' 3/8" 2205 Stainless Steel 9,390' MD 6,518' TVD Tubing (size, grade, MD &TVD): Tie-back 3-1 /2" L-80 7,535' MD 4,756' TVD SSSV: NA - MD - ND Packers and SSSV (type, MD &TVD): Packers: ZXP Liner-top 7,535' MD 4,756' TVD 11. Stimulation or cement squeeze summary: Intervals treated (measured): Isolated 8,929' - 8,969' MD perforations with a 23 bbt polymer squeeze and installed a 3/8" Treatment descriptions including volumes used and final pressure: stainless steel capillary string to 9,390' MD. 12. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 2,830 138 - 285 Subsequent to operation: 0 0 - 10 75 13. Attachments: 14. Well Class after work: ~ Copies of Logs and Surveys Run Exploratory ^ Development Q Service ^ ~ Daily Report of Well Operations X 15. Well Status after work: Oil Gas ~ WDSPL GSTOR ^ WAG ^ GINJ^ WINJ ^ SPLUG ^ 16. 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: 310-235 Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba . Title Regulatory Compliance Representative ~ , '~ Phone (907) 283-1371 Date September 2, 2010 Signature ~. Form 10-404 Revised 7/2009 B~~S SEP 0 710 Submit Original Only ~~pn ations Summary Report by Job xtnaarxor Oil rry Vvell Name: CANNERY LOOP UNIT 07 ~® Qtr/Qtr, Block, Sec, Town, Range Field Name License No. State/Province Country 6007005N011W01 CANNERY LOOP UNIT ALASKA USA Daily Operations Report Date: 7/31/2010 Job Cate o WORKOVER 24 Hr Summary Run a 2.125" OD gauge ring thru the Straddle packer at 8500' to 8531' and tag TD @ 10,452' wlm. Run 2.80" OD GR to the top of the straddle. POOH. Ops Trouble- Start Time End Time Dur (hrs) Ops CStde Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG Hold PJSM. Discuss emergency response, alarms-red flashing strobe for fire alarm, blue flashing strobe for gas alarm, muster area, wind direction, and specific job hazards. Obtain SW Permit. 08:30 10:48 2.30 RURD ELEC MIRU Expro logging unit. Lay liners and drip pans. RU unit. MU lubricator and tool string. 10:48 11:48 1.00 RUNPUL ELEC Information from the Expro shop indicated that a 2.25" OD gauge ring would drift the straddle packer. RIH w/ 2.25" GR. Sets down in top of straddle. 350 Ibs overpull pulls it free. POOH. 11:48 13:48 2.00 RUNPUL ELEC RIH w/ 2.125" OD gauge ring. The next larger size Expro had. Pass thru straddle patch from 8500' to 8531' . Continue RIH and tag TD @ 10,452'. POOH. 13:48 14:48 1.00 RUNPUL ELEC RIH w/ 2.80" OD gauge ring. Tag top of patch @ 8500' wlm. POOH. 14:48 15:48 1.00 RURD ELEC RD unit. 15:48 16:03 0.25 SECURE WELL Secure well. TUrn in permit and sign out. _ Report Date: 8/11/2010 Job Category: WORKOVER _ 24 Hr Summary MIRU Expro wireline to set Weatherford IRBP. RIH w/ PT gauges to get fluid level - 7990' MD RKB (1261 psia @ 109degF). RU and test IRBP. RIH and correlate to casing patch and set IRBP @ 8993'. Plug appeared to set fine, but did not release. WT and pulled out of rope socket. RD Expro. ___ Ops .Trouble Start Time End Time ~ Dur (hrs) _ Ops Code Activity Code - Status Code Comment 08:00 08:30 0.50 SAFETY MTG AF Held PJSM w/ Expro. Discussed crane operations, concurrent operations, and visitors on location. Obtained safe work permit. 08:30 09:30 1.00 RURD ELEC AF RU wireline truck and equipment. MU tool string and lubricator and stab on well. 09:30 09:45 0.25 TEST BOPE AF PT lubricator to 2000 psi. Good test. 09:45 12:15 2.50 LOG PROD AF RIH w/ PT gauges and obtain fluid level, details: Air: 13.8psia @ 49.7degF Tubing hanger: 1111.1 psia @ 48.3degF Fluid level @ 7990' MD RKB: 1261.Opsia @ 109.OdegF Tubing hanger 1130.Opsia @ 52.OdegF 12:15 14:15 2.00 PULD PKR AF LD tool string and RU Weatherford IRBP. Prime pump and PU into lubricator, stab on well. 14:15 14:30 0.25 TEST BOPE AF PT lubricator to 2000 psi. Good test. 14:30 20:00 5.50 SETREL PLUG AF RIH w/ IRBP. Trouble correlating off cased hole logs, correlate off casing patch and stop @ 8993' (center of element). Set IRBP. Plug appeared to set fine, but did not release from tool string. WT and pulled up to 3000#, pulling out of rope socket. POOH. Left in hole: RS, weight bars, CCL, and EPST hydraulic section. (total 21') 20:00 21:00 1.00 RURD ELEC AF LD lubricator and tool string. RD wireline truck and equipment. Re ort Date: 8/12/2010 Job Cate o WO RKOVER 24 Hr Summary MIRU Pollard slickline to fish wireline tool string. RIH w/ 2.00" JDC and set down @ 8623' MD RKB, WT and unable to fall- POOH. RIH w/ same and additional 3' roller stem, latch fish @ 9042' wlm and WT 1x- pulled free and POOH. Recovered fish. RIH w/ 2.125" swage to 9070' wlm and tag packer 4x to confirm packer set- good set. POOH and RD Pollard. -- Ops Trouble - I Start Time ~ End Time Our(hrs) ' Ops Code ' Activity Code Status Code Comment 07:30 08:00 0.50~SAFETY MTG TA NDSW Held PJSM w/ Pollard and operator. Discussed working with pressure, emergency procedures, and tool hazards. Obtained safe work permit. www.peloton.com Page 1/4 Report Printed: 8/23/2010 ry~ ~ations Summary Report by Job• awannior Oi1C:1~1111pattiy we" Name: CANNERY LOOP UNIT 07 ~~ Casing Flange Elevation (ft) Ground Elevation (ft) KB-Casing Flange Distance (ft) KB-Ground Distance (ft) Spud Date Rig Release Date 0.00 21.00 42.00 21.00 12/18/2003 ' Ops Trouble Start Time End Time Dur (hrs) ' Ops Code Activity Cdde Status Code Comment 08:00 09:45 1.75 RURD SLIK TA NDSW RU 0.160" slickline truck and equipment. MU tool string and lubricator and stab on well. 09:45 10:00 0.25 TEST BOPE TA NDSW PT lubricator to 2000psi. Good test. 10:00 12:00 2.00 ENGAGE FISH TA NDSW RIH w/ RS, KJ, 10' x 2.12" roller stem, KJ, OJ, SJ, and 2.00" JDC w/ 2.12" bell guide. Set down @ 8602' wlm and could pass- WT and POOH. 12:00 13:15 1.25 ENGAGE FISH TA NDSW RIH w/ same BHA and additional 3' of roller stem and 2.00" JDC. Latch fish @ 9021' wlm. Hit 1x and pulled free- POOH. Recovered fish. 13:15 14:00 0.75 RUNPUL SLIK TA NDSW RIH w/ same BHA and 2.125" swage. Tag packer @ 9049' wlm. Tag 4x to confirm set- good set. POOH. 14:00 15:00 1.00 RURD SLIK TA NDSW LD lubricator and tool string. RD slickline truck and equipment. Sign out, turn in work permit, and leave location. Daily Operations Report Date: 8/13/2010 Job Cate o WORKOVER 24 Hr Summary MIRU BJ Coil. RU flowback tank, choke, gas buster, and iron. Perform successful BOP test, 250psi low - 4500psi high. Test witness waived by Jim Regg, AOGCC (8/10/10 @ 0845). Pig CT. RD BJ for night. __ ~_Ops Trouble Start Time End Time Dur (hrs)_ Ops Code Activity Code Status Code Comment 07:30 08:15 0.75 SAFETY MTG AF Held PJSM wl BJ Coil, ASRC, and operator. Discussed job operations, good communication, and emergency procedures. Obtained safe work permit. 08:15 12:15 4.00 RURD COIL AF MIRU BJ coil. Spot trucks and crane. RU flowback iron and equipment. RU BJ hardline to BOP and flow cross and stab on well. 12:15 14:30 2.25 TEST BOPE AF PT BOP as follows: Function test Blinds 250 low / 4500 high for 10 min Pipe rams 250 low / 4500 high for 10 min Shell test BOP and iron 4500 high for 10 min Good test. 14:30 15:30 1.00 RURD COIL AF Stab injector on well and pig CT w/ KCL. 15:30 16:00 0.50 RURD COIL AF RD BJ for night, secure well, sign out, turn in work permit, and leave location. Report Date: 8/14/2010 Job Cate o WO RKOVER _ 24 Hr Summary RU BJ coil for water shutoff -polymer squeeze of perfs 8929'-8969' MD RKB. PU Weatherford backpressure valve and get pump rate pressures. PU Weatherford BHA including CT packer, unloader, and backpressure valve. RIH and tag casing patch @ 8500', PU and set packer @ 8480'. Perform infectivity test by injecting 2 tubing volumes of KCL (160 bbls). Test good- final pressure, 1000psi @ 1.0 BPM. Mix one batch (25 bbls) Maraseal polymer gel and spot in coil. Mix second batch (25 bbls) of gel and begin squeeze. Only able to pump 0.2-0.3 BPM to maintain maximum pressure (1750 psi). Begin displacement with KCL and reached max pressure, unable to inject after 6 bbls KCL displaced. Total polymer gel squeezed: 23 bbls. POOH to surface, attempt to flush CT and lines with KCL to tank, but check valve plugged. Remove valve and flush CT and lines with KCL to tank 2x. RD BJ coil for weekend. -- Ops Trouble I Start Time I End Time Dur (hrs) Ops Code. Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Held PJSM w/ BJ coil, ASRC, Tiorco, Weatherford, and operator. Discussed job operations, working with chemicals, and emergency procedures. Obtained safe work permit. 08:30 09:00 0.50 RURD COIL AF RU coil unit and equipment. PU injector and MU lubricator. 09:00 09:45 0.75 PULD BHA AF MU backpressure valve and stab injector on well. Perform pull test to 24000#- good test. Perform pump rate pressure test to obtain opening pressure for backpressure valve. 09:45 10:30 0.75 PULD BHA AF MU 1.75" coil connector, dual check valve, MHA disconnect, circulation sub, safety pressure valve (backpressure valve), XO, set-down unloader, XO, XO, CT packer, XO, XO, XO, and jet nozzle. PU into lubricator and stab on well. 10:30 10:45 0.25 TEST BOPE AF PT lubricator to 3500 psi. Good test. 10:45 12:45 2.00 RUNPUL COIL AF RIH to 6500' MD RKB and function test packer- good test. RIH to 8400' MD RKB and function test packer- good test. Tag casing patch @ 8500' and PU to 8480' and set packer. 12:45 15:45 3.00 PUMP WTR AF Perform infectivity test of perfs 8929'-8969' by injecting 2 tubing volumes of KCL (160 bbls). Good test- final pressure 1000psi @ 1.0 BPM. 15:45 17:15 1.50 MIX FLD AF Mix one batch (25 bbls) Maraseal polymer gel. www.peloton.com Page 2/4 Report Printed: 8/23/2010 M Merathpn D~ations Summary Report by Job. ~u-Ranior ~DIIC:O~ny ell Name: CANNERY LOOP UNIT 07 -. _~ . r OPs Trouble - ~~ `$tart Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment i 17:15 18:15 1.00 PUMP TRET AF -- Spot polymer pill in coil. 18:15 19:15 1.00 MIX FLD AF Mix second batch (25 bbls) Maraseal polymer gel. 19:15 22:15 3.00 SOUEZE OTHR AF Begin pumping second batch of gel and squeezing to perfs. Only able to pump 0.2-0.3 BPM to maintain maximum pressure (1750 psi). Begin displacement with KCL and reached max pressure, unable to inject after 6 bbls KCL displaced. Total polymer gel squeezed in perfs 8929'-8969': 23 bbls. 22:15 23:45 1.50 RUNPUL COIL AF POOH w/ CT to surface. 23:45 01:00 1.25 PUMP WTR AF Attempt to flush CT and lines with KCL to tank, but check valve plugged. Remove valve and flush CT and lines with KCL to tank 2x. 01:00 02:00 1.00 RURD COIL AF LD lubricator and injector off well. RD coil equipment, secure well, sign out, and leave location. Daily Operations Report Date: 8/17/2010 Job Cate o WORKOVER 24 Hr Summary RU BJ coil to pull IRBP and jet well. RIH w/ OJ and hydraulic overshot and tag polymer gel @ 7200' MD RKB. Set down up to 8000# with little progress. POOH and change out tools for jet nozzle. RIH to top of gel and begin jetting gel with KCL and N2, making 100' wiper trips. Jet well to tag IRBP @ 9047'. Displace well with clean KCL, POOH. RD BJ for night. Ops Trouble Start Time ' End Time Dur (hrs) ~ OpS Code Activity Code Status Code ~ Comment 07:30 08:00 0.50 SAFETY MTG AF Held PJSM w/ BJ coil, ASRC, Weatherford, and operator. Discussed job operations, working with nitrogen, and emergency procedures. Obtained safe work permit. 08:00 09:45 1.75 RURD COIL AF RU coil unit and PU additional stick of lubricator. Install new CT connector and pull test to 20,000#. MU tool string and stab on well. 09:45 10:00 0.25 TEST BOPE AF PT lubricator to 2000 psi. Good test. 10:00 13:00 3.00 RUNPUL COIL AF RIH w/ 1.75" dimple connector, dual check valve, hydraulic disconnect, dual-acting OJ, XO, and 2.125" hydraulic overshot. Set down on polymer gel @ 7200' MD RKB. Continue RIH with increasing drag. Max set down- 8000#. Decision to POOH and PU jet nozzle and jet gel. POOH. 13:00 13:45 0.75 PULD BHA AF LD tool string and MU jet assembly. Stab back on well. 13:45 21:15 7.50 JET WTR TA MDOT RIH w/ 1.75" CT connector, dual check valve, XO, and jet nozzle to top of gel and begin jetting @ 1.25BPM of KCL and 400-450scfm N2. Make wiper trip every 100' and monitor returns. 75-100% returns throughout jetting with little solid gel to surface. Continue jetting w/ wiper trips until tagging plug @ 9047'. Circulate coil and well with clean KCL and POOH. 21:15 22:15 1.00 RURD COIL AF LD tool string and LD lubricator and injector head. Secure well for night, sign out, turn in work permit, and leave location. Report Date: 8/18/2010 Job Cate o WO RKOVER 24 Hr Summary RU BJ coil to pull IRBP. RIH w/ 2.125" hydraulic overshot and set down in casing patch @ 8500' MD RKB. WT and unable to get through. POOH to modify overshot and PU motor. RIH and pass through patch, tagging IRBP @ 9047'. Equalize plug and allow to deflate. Plug appears to be latched, equalized, and deflated. POOH while attempting to swab well on, no luck getting well kicked off and IRBP not in overshot. RD BJ. _ Ops Trouble. Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment - -~ - -- - - 07:30 08:00 0.50 SAFETY MTG AF Held PJSM w/ BJ coil, ASRC, Weatherford, and operator. Discussed job operations, tripping hazards, and emergency procedures. Obtained safe work permit. 08:00 08:45 0.75 RURD COIL AF RU coil unit and PU additional stick of lubricator. MU tool string and stab on well. 08:45 09:00 0.25 TEST BOPE AF PT lubricator to 2000 psi. Good test. 09:00 12:30 3.50 SETREL PLUG AF RIH w/ 1.75" dimple connector, dual check valve, hydraulic disconnect, dual-acting OJ, XO, and 2.125" hydraulic overshot. Set down on casing patch @ 8500'. Work string several times with pumps on and off with no luck getting through patch. POOH. 12:30 14:30 2.00 PULD BHA AF LD tool string and modify overshot. Grind bevel on outside edge and grind a muleshoe. PU new tool string. www.peloton.com Page 3/4 Report Printed: 8/23/2010 IVlar~'thon ations Summary Report by Job• ,Nnwmior Oi1C:or~any we~~ Name: CANNERY LOOP UNIT 07 ~® - _-- - - Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Cade Status Cade Comment 14:30 19:00 4.50 SETREL PLUG TA MDOT __ RIH w/ 1.75" dimple connector, dual check valve, hydraulic disconnect, PD motor, XO, and 2.125" modified hydraulic overshot. Pass through patch no problem, continue RIH to tag IRBP @ 9047'. Equalize plug and allow to deflate. Plug appears to be latched, equalized, and deflated. POOH while attempting to swab well on, no luck getting well kicked off and IRBP not in overshot. 19:00 20:00 1.00 RURD COIL AF LD tool string and LD lubricator and injector head. Secure well for night, sign out, turn in work permit, and leave location. Daily Operations Re ort Date: 8/19/2010 Job Cate o WORKOVER 24 Hr Summary RU Pollard slickline (0.160" unit) to pull IRBP. RIH w/ 1.75" JDC and tag plug at 10,190' MD RKB, 600# overpull to pull free. POOH and tag bottom of casing patch @ 8600', jar to 8594' and shear JDC. POOH and replace pin. RIH w/ same, latch plug, and jar 10x pulling up to 3000# over and pulled free. POOH to surface, recovered IRBP- left lower rubber element in hole. Fluid level -3500'. RIH w/ 2.00" GR and tag fill @ 10,553'. RD Pollard. _ i _ - Ops Ttouble _ Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 09:00 09:45 0.75 _ _ SAFETY -- --~ MTG - TA MDOT Held PJSM w/ Pollard. Discussed job operations, tripping hazards, and pinch points. Obtained safe work permit. 09:45 11:15 1.50 RURD SLIK TA MDOT RU 0.160" slickline unit and equipment. MU tool string and lubricator and stab on well. 11:15 11:30 0.25 TEST BOPE TA MDOT PT lubricator to 2000 psi. Good test. 11:30 13:30 2.00 RUNPUL SLIK TA MDOT RIH w/ RS, KJ, 2.125" x 10' roller stem, KJ, OJ, LSSJ, 2.125" x 8' roller stem, 1.90" centralizer and 1.75" JDC. Tag IRBP at 10190' MD RKB - bottom set of perfs. PU 600# overpull and came free. Tag bottom of casing patch @ 8600', jar to 8594' pulling up to 2500# over and shear JDC. POOH and replace pin. 13:30 15:15 1.75 RUNPUL SLIK TA MDOT RIH w/ same and latch plug, jar 10x pulling up to 3000# over and pulled free. POOH to surface, recovered IRBP- left lower rubber element in hole. Fluid level - 3500'. 15:15 16:15 1.00 RUNPUL SLIK TA MDOT RIH w/same BHA and 2.00" GR and tag fill @ 10,553'. POOH. 16:15 17:00 0.75 RURD SLIK TA MDOT LD tool string and lubricator. RD slickline truck and equipment. Sign out, turn in work permit, and leave location. Re ort Date: 8/20/2010 Job Cate o WO RKOVER _ 24 Hr Summary RU BJ coil to N2 lift well. RIH w/jet nozzle to 8000' MD RKB and circulate N2 to surface. RIH to 10250' and circulate bottoms up. POOH to surface jetting N2 at 1000scfm. Total of 96 bbls of fluid to surface, monitor well- little flow. Shut in @ 1800. RD BJ for night. _____ T Ops Trouble__ Start Time : End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Held PJSM w/ BJ coil, ASRC, and operator. Discussed job operations, working with nitrogen, and emergency procedures. Obtained safe work permit. 08:00 09:30 1.50 RURD COIL AF RU coil unit and PU lubricator and injector head. MU tool string and stab on well. 09:30 09:45 0.25 TEST ROPE AF PT lubricator to 2000 psi. Good test. 09:45 14:00 4.25 JET N2 AF RIH w/ 1.75" dimple connector, XO, check valve, straight bar, and nozzle to 8000' MD RKB and circulate N2 to surface. RIH to 10250' and circulate bottoms up. POOH to surface jetting N2 at 1000scfm. Total of 96 bbls of fluid to surface. 14:00 15:00 1.00 RURD COIL AF LD tool string and LD lubricator and injector head. Secure well for night, sign out, turn in work permit, and leave location. Monitor well- little flow. Shut in @ 1800. Re ort Date: 8/21/2010 Job Cate o WO RKOVER 24 Hr Summary RD BJ coil. Vent well to bring on production. _ Ops Trouble Start Time End Time Dur (hrs) ', Ops Code Activity Cod® ' Status Code ' Comment 07:30 08:00 0.50 SAFETY MTG AF Held PJSM w/ BJ coil, ASRC, and operator. Discussed job operations, crane operations, and emergency procedures. Obtained safe work permit. 08:00 12:00 4.00 RURD COIL AF RD BOP's and wellhead adapters. NU tree cap and PT. Re-run flowback iron. Break BJ iron, reel up hoses and RD misc. equipment. Sign out, turn in work permit, and leave location. ', www.peloton.com Page 4/4 Report Printed: 8123/2010 ~~ 11Asrathon O~ations Summary Report by Job ,~~ ~QaElCcirr»~alny Weli Name: CANNERY LOOP UNIT d7 Cllr/Cllr, Block, Sec, Town, Range 6007005N011W01 Field Name CANNERY LOOP UNIT License No. State/Province Country ALASKA USA Daily Operations Re ort Date: 8/24/2010 Job Cate o R&M MCJNTENANCE 24 Hr Summary MIRU DynaCoil to run 3/8" cap string to 9390' md. T - i Stan Time End Time i i Dur (hrs) Ops Code O ' Activity Code ps ~ Status - Trouble~ Code _-._ - -- ------- ----- - ~ Comment i 12:20 15:02 2.70 RURD COIL _ Move from CLU 8 to CLU 7. Spot DynaCoil unit. Lay liners and drip pans. RU DynaCoil Unit. PU spool from CLU 8. Coil installed thru injector assembly. Thread string thru packoff assemblly. PT cap string to 4800 psi. Test good. Set fluid control valve for 3000 psi. (9200' md, 6328' tvd) Carry injector to WH while "walking" injector down string. Install POff on WH. PT packoff to 3000 psi. Release pressure. Open swab and upper master valves. 15:02 17:02 2.00 RUNPUL COIL RIH to 9390'. RIH. Land cap string at 9390'. Set mechanical slips. Set rattigon. Pressure packoff to 3000 psi. 17:02 18:02 1.00 RURD COIL Carry injector off the WH. "Walk" the injector up the pipe. Run the cap string out the end of the injector. RD the Dyna Coil unit. Reconnect the foamer and start the pump at 15 gal/day. 18:02 18:32 0.50 SECURE WELL Secure well head. Turn well over to operations to begin flowing thru the night. www.peloton.com Report Printed: 9/2/2010 203-191 50-133-20531-00-00 Property Des: ADL-0373302 ADL-0324602 FEE-TR73 KB Elevation: 42' RKB (21' AGL) Lat: 60°532211 Long: -151°261626 X: 272,776.575' Y: 2,388,631.433' Spud Date: 12/20/2003 TD Reached: 01/13/2004 Rig Released: 01/21/2004 @ 18:00 hrs PA #: Tree cxn = 4-3/4" Otis Tie-back Tubing: 3-1/2" L-80 9.2 ppf Buttress Tom Bottom MD 0' 7,535' ND 0' 4,756' 3.5" chemical Injection Mandrel @ 2,320' MD, 1,781' TVD with 1/4", 0.049", SS control line for Methanol injection ZXP liner-top packer# 265-28-0229 top at 7,535' MD Max Hole Angle: build from 400 to 1,650' at 5 deg /100 60 deg 1,650' to 5,600' drop at 2 deg / 100 to 9'200' Final Angle: 1 deg Max Doglegs (deg/100'i: 8.31 C~ 1'181' Owen isolation Patch 3.5" X-Span patch set on 4/17/04 (min I.D. 2.25") Top of patch at 8,500.3', bottom at 8,531.0'. Isolating perforations at 8,506' - 8,526' Tag Fill @ 10,553' (8/18/10) 2.00" GR on slickline CLU - 7 Pad 1 184' FSL, 194' FEL Sec. 7, T5N, R11W, S.M. TD PBTD 10,864' MD 10,776' MD 7,992' ND 7,905' TVD ~~ M MARATHON Conductor: 20" K-55 129ppf TOE Bottom MD 0' 124' ND 0' 124' Surface Casino: 13-3/8" K55 68 ppf BTC Top Bottom MD 0' 1,796" TVD 0' 1,516' 16" Hole Cmt w/ 495 sks, 100% returns w/ 40 bbls to surface Intermediate Casing: 9-5/8" L-80 40 ppf Butt T~ Bottom MD 0' 7,760' ND 0' 4,952' Cmt w/ 250 sks lead (93.6 bbl) & 315 sks tail (65bb1)of class G Liner: 3-1/2" L-80 9.2 ppf Hydril 563 Two Bottom MD 7,588' 10,854' ND 4,802' 7,992' Cmt w/ 885 sks of class G. Bumped plug, floats held. Capillary Tubing (Installed 8/24/2010) 3/8" OD 2205 Stainless Steel 0.049" Wall Thicknes Tom Bottom MD 0' 9,390' TVD 0' 6,518' Beluga Perforations: 2.375" HSD, 4spf, 60 deg, 9.Ogrm 7,984' - 7,998' 8,227' - 8,261' 8,320' - 8,353' ~6' Isolated w/ Owen patch 6;~9~-8;96a Polymer squeeze (8/13/10) 9,068' - 9,096' 9,182' - 9,202' 9,295' - 9,315' 9,328' - 9,341' reperf 4/17/04, 2.5" 6spf, 60° 9,353' - 9,385' 9,658' - 9,688' 1-11/16" Shogun 4spf 9,699' - 9,714' 1-11/16" Shogun 4spf 9,838' - 9,864' 1-11/16" Shogun 4spf 9,942 - 9,976' 1-11/16" Shogun 4spf 10,132' -10,158' 1-11/16" Shogun 4spf 10,170' -10,200' 1-11/16" Shogun 4spf Well Name & Number: Canne Loo Unit # 7 Lease: Canne Loo Unit Munici alit Kenai Peninsula Borou h State: Alaska Count USA Perforations MD : 7 984' - 10 200' Pert TVD : 5 255' - 7 328' An le KOP & De the _ 60.5° 250' MD An le Perfs: 24° ~ 1° Date Com leted: 2/21/2004 Ground Level: 21' AMSL RKB: 21' AGL Revised b Kevin Skiba Revision Date: 9/2/10 • C~ Kevin J. Skiba Regulatory Compliance Representative Marathon Alaska Production, LLC D3 •~ ~ q' P.O. Box 1949 Kenai, AK 99611-1949 Re: Cannery Loop Field, Beluga Pool, Cannery Loop Unit #7 Sundry Number: 310-235 Dear Mr. Skiba: .~'. ~~~~~'}e~ ~•U~' ~~ ~` r~G ~!' 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, Daniel T. Seamount, Jr. ~ ~ Chair DATED this ~ day of August, 2010. Encl. U IVlarathon AAARATHON Alaska Production LLB July 30, 2010 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-403 Application for Sundry Approvals Field: Cannery Loop Well: Cannery Loop Unit #7 Dear Mr. Aubert: Marathon Alaska Production LLC Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~~~~~~ BUG ~ ! ~i~i ~laisk~ i~! ~ 6~ f,~. Gi~,iu. ~,srch~~r,~ge ao% Submitted for your approv ~ the10-403 Application for Sundry Approvals for CLU-7 well. CLU-7 is producing 13 bls of production water per day. It has been determined that the 8,929'-8,969' MD perforation interval produces the majority of the water. Marathon proposes to isolate the water production with a polymer squeeze.'The intent of this activity is to extend the well's life and decrease the costs and risks associated with processing and disposing of CLU-7's excess production water. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10-403 Application for Sundry Approvals cc: AOGCC Current Well Schematic Houston Well File Detailed Operations Program Kenai Well File KJS STATE OF ALASKA ALASK~L AND GAS CONSERVATION COMMISSI~ ~r~ l~ V~G~ APPLICATION FOR SUNDRY APPROVALS o$~03 jtor>, 20 AAC 25.280 1. Type of Request: Abandon ^ Plug for Redrill ^ Perforate New Pool ^ Repair well ^ Change approved program ^ Suspend ^ Plug Perforations Q Perforate ^ Pull Tubing ^ Specify: Time Extension ^ Operational shutdown ^ Re-enter Susp. Well ^ Stimulate ^ Alter casing ^ Other: ^ 2. Operator Name: Marathon Alaska Production LLC 4. Current Well Class: 5. Permit to Drill Number: ' Development ^ Exploratory ^ 203-191 3. Address: p0 Box 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20531-00-00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: ^ D Cannery Loop Unit #7 No Spacing Exception Required? Yes 9. Property Designation (Lease Number): 10. Field/Pool(s): ADL-0373302; ADL-0324602, FEE-TR73 Cannery Loop Field / Beluga Pool 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth ND (ft): Effective Depth MD (ft): Effective Depth ND (ft): Plugs (measured): Junk (measured): 10,864' ~ 7,992'- 10,776'. 7,905'- NA NA Casing Length Size MD ND Burst Collapse Structural Conductor 103' 20" 124' 124' Surface 1,775' 13-3/8" 1,796' 1,516' 3,450 psi 1,950 psi Intermediate 7,739' 9-5/8" 7,760' 4,953' 5,750 psi 3,090 psi Production Liner 3,266' 3-1/2" 10,854' 7,992' 10,160 psi 10,530 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 7,984' - 10,200' 5,154' - 7,328' Tie-back ` 3-1/2" L-80 7,535' Packers and SSSV Type: SSSV: NA Packers and SSSV MD (ft) and ND (ft): SSSV: - NA / Packer: 2JCP Liner-top Packer: 7,535' MD 4,756' TVD 12. Attachments: Description Summary of Proposal ^ 13. Well Class after proposed work: Detailed Operations Program^ BOP Sketch ^ Exploratory ^ Development ^- Service ^ 14. Estimated Date for August 11 2010 ~ 15. Well Status after proposed work: , Commencing Operations: Oil ^ Gas ^~ ~ WDSPL ^ Plugged ^ 16. Verbal Approval: Date: WINJ ^ GINJ ^ WAG ^ Abandoned ^ Commission Representative: GSTOR ^ SPLUG ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Representative Signature ~• one (907) 283-1371 Date • v July 30, 2010 COMMISSION USE ONLY d N b S /~ O ~ ~~ un ry um er: . Conditions of approval: Notify Commission so that a representative may witness Plug Integrity ^ BOP Test ~ Mechanical Integrity Test ^ Location Clearance ^ Other: T2S`~' '~©r ~ "l '0 T~QO ~ ~ ~~~V~Q ~t~G 0 2 2a~a Subsequent Form Required: j ~ - "f ~ C{ - l~i~lska ~ ~ Gas Gs~. C~Yllmissio~ APPROVED BY ~~~!~ ~~~ Approved by: COMMISSIONER THE COMMISSION Date: $ 3 v r i wvlrl~ HUIT V `~ ORIGINAL Form 10-403 Revised 12/2009 Submit in Duplicate • • M MARATHON July 6, 2010 Marathon Oil Company Alaska Asset Team Cannery Loop Unit #7 Revised Procedure to: Shut off Water with Polymer Squeeze WBS # W0.10.22698.EXP.001 APPROVALS: ~avne~ ~~ttoot 7/6/10 Program Writer JIl1~icP~ecs J<7'uP.P.irc 7J~4/~!1 Mickey Mullin Lyndon Ibele Objective: Permanently abandon a single wet Beluga interval that was perforated with 'J conventional wireline guns on February 20, 2004. A PLT was run on June 09, 2009 indicating 76% of the water production and 0% of the gas production was coming from perforations, 8929'-8969' MD RKB (6058'-6098' TVD). This water productive interval will be shut off by squeezing a polyacrylamide polymer into the near wellbore region over the 40 foot perforated length in an attempt to prolong well life and decrease operating costs. Current status: Well is currently flowing 2.5 MMSCFD @ 330 psi FTP and 160 ~ BWPD. Procedure• 1. Haul Tanks and Rental Equipment to Location. 2. Run GR. MU a 2.20" GR and pull into the lubricator. Take lubricator to wellhead and pressure test to 2000 psi with water. RIH with 2.20" GR or swage past 9000' MD to tag PBTD at or near 9400' MD. Run GR. MU a 2.80" GR and pull into the lubricator. Quick test lubricator to 2000psi. RIH with 2.80" GR to tag casing patch @ 8500' MD. 4. Set Wireline Inflatable Retrievable Bride Plug below wet perf interval. PU 2.125" OD Weatherford WR inflatable bridge plug and setting tool. Quick test lubricator to 2000psi. RIH and correlate to ZXP hanger @ 7535'. Set center of inflatable bridge plug at 9000' MD. CLU 7 Polymer Squeeze Wet Beluga Perf Interval i • 5. MIRU Coiled Tubing Unit. Pressure test BOP's with KCL water to 250 psi/4500 ~ psi. Function test BOP accumulator. Submit required BOP Test Report to AOGCC. Notify AOGCC James Regg n, 907-793-1236 (24 or longer) prior to CT BOP Test 6. MU the Weatherford CT packer assembly: Shell test BOP and lubricator to 4500 psi with KCL water. 7. RIH, Tag casing patch, PUH and set CT packer. Tag the top of the casing patch at about 8500' MD. PUH 20' to 8480' with coiled tubing and set CT packer. 8. Perform Infectivity Test. Begin pumps CL at a low rate to establish injection at a stabilized pressure. DO NOT EXCEE 175Q~si (frac grad= .745psi/ft, fluid grad= .45psi/ft, TVD= 6098'). ~-' 9. Permanently isolate perf interval, 8929'-8969' MD, with MaraSeal Polymer. Mix 53 bbls of Tiorco "MaraSeal" polyacrylamide polymer blend with fresh water. Pum P into formation as per pump schedule. 10. Pull Inflatable Bridge Plug. Hold PJSM. MU a 1"pump-through JDC pulling tool and bell guide to catch a 1" fishing neck on the inflatable BP to the Weatherford MHA and double flapper/check assembly on the BJ Services coiled tubing. Pull fishing BHA into lubricator and take to wellhead. Pressure test lubricator to 2000 psi with water. 24 Hours after performing polymer squeeze: 11. Jet Well Dry with Nitrogen. 12. RDMO BJ Services Coiled Tubing Equipment. CLU 7 Polymer Squeeze Wet Beluga Perf Interval ty Des: ADL-0373302 AD L-0324602 FEE-TR73 :vation: 42' RKB (21' AGL) 60°532211 -151°261626 272,776.575' 2,388,631.433' )ate: 12/20/2003 ached: 01/13/2004 :leased: 01/21/2004 @ 18:00 hrs Tree cxn = 4-3/4" Otis 3-1/8" 5M tree Tie-back Tubing: 3-1/2" L-80 9.2 ppf Buttress Tom Bottom MD 0' 7,535' ND 0' 4,756' 3.5" chemical Injection Mandrel @ 2,320' MD, 1,781' ND with 1/4" , 0.049", SS control line for Methanol injection ZXP liner-top packer # 265-28-0229 top at 7,535' ~ Max Hole Angle: build from 400 to 1,650' at 5 deg /100 60 deg 1,650'to 5,600' drop at 2 deg / 100 to 9'200' Final Angle: 1 deg Max Doglegs (deg1100'): 8.31 (c~ 1'181' Owen isolation Patch 3.5" X-Span patch set on 4/17104 (min I.D. 2.25") Top of patch at 8,500.3', bottom at 8,531.0'. Isolating perforations at 8,506' - 8,526' Tag Fill @ 10,511' (6/9/09) CLU - 7 Pad 1 184' FSL, 194' FEL Sec. 7, TSN, R11W, S.M. ~l TD PBTD 10,864' MD 10,776' MD 7,992' ND 7,905' ND ~~ J M MARATiIOM Conductor: 20" K-55 129ppf T~ Bottom MD 0' 124' ND o' 12a' 13-3/8" K55 68 ppf BTC Top Bottom MD 0' 1,796" ND 0' 1,516' 16" Hole Cmt w/ 495 sks, 100% returns w/ 40 bbls to surface 9-5/8" L-80 40 ppf Butt Tom Bottom MD 0' 7,760' ND 0' 4,952' Cmt w/ 250 sks lead (93.6 bbl) & 315 sks tail (65bb1)of class G Liner: 3-1/2" L-80 9.2 ppf Hydril 563 Tom Bottom MD 7,588' 10,854' ND 4,802' 7,992' Cmt w/ 885 sks of class G. Bumped plug, floats held. r c~ w~ au 2.375" HSD, 4spf, 60 deg, 9.Ogrm 7,984' - 7,998' 8,227' - 8,261' 8,320' - 8,353' X26' Isolated w/ Owen patch 8,929' - 8,969' 9,068' - 9,096' 9,182' - 9,202' 9,295' - 9,315' 9,328' - 9,341' reperf 4/17/04, 2.5" 6spf, 60° 9,353' - 9,385' 9,658' - 9,688' 1-11/16" Shogun 4spf 9,699' - 9,714' 1-11/16" Shogun 4spf 9,838' - 9,864' 1-11/16" Shogun 4spf 9,942 - 9,976' 1-11/16" Shogun 4spf 10,132' -10,158' 1-11/16" Shogun 4spf 10,170' -10,200' 1-11/16" Shogun 4spf Well Name & Number: Cannery Loop Unit # 7 Lease: Cannery Loop Unit Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 7,984' - 10,200' Perf (TVD): 5,255' - 7,328' Angle @ KOP & Depth: - 60.50° @ 250' MD Angle @ Perfs: 24° -~ 1° Date Completed: 2/21/2004 Ground Level: 21' (AMSL) RKB: 21' (AGL) Revised by: Kevin Skiba Revision Date: 7/30/2010 • ~„_ MICROFILMED 03/01/2008 DO N4T PLACE ~.' _"" -. -. ' - ~: ANY NEW MATERIAL UNDER THIS PAGE F:\LaserFiche\C~rPgs_InsertstMicrofilm_Marker.doc . ~~) Marathon MARATHON Oil Company . Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283·1350 RECE'VED AUG 3 1 Z007 August 29,2007 Alaska Oil & Gas Cons. Commission Anchorage Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W ih Ave Anchorage, Alaska 99501 Reference: 10-404 Report of Sundry Well Operations Add Perforations 306-341 Field: Cannery Loop Unit Pad 3 Well: Cannery Loop Unit #7 (PTD- 203-191) Dear Mr. Maunder: SCANNED SEP 1 1 2007 Enclosed is the 10-404 for sundry 306-341. This sundry reports the addition of perforations using Shogun Strip Guns in Cannery Loop #7 dated December 1th 2006 through the 9th. We have added the perforations as referenced on the current wellbore diagram from 9658'·10200' (gross interval- 6 gun runs). Attached with the 10-404 are the operations summary reports for the job and a current wellbore diagram. Due to the addition of these perforations we had gained -1400 MCFD and -30 psig tubing pressure. Please send any sundries or pertinent documentation to Kevin Skiba at the above address listed. If you have any questions or need further information please call me at (907) 398-1362. Sincerely, . Dennis Donovan Production Engineer Enclosures: 10-404 Sundry of Well Ops 306-341 Operations Summary Report Current Well Schematic cc: AOGCC Houston Well File Kenai Well File DMD KJS ~ . STATE OF ALASKA . ?-;1..p¡i1 ALAS?! OIL AND GAS CONSERVATION COMM~ON REPORT OF SUNDRY WELL OPERATIONS RECEIVED AUG 3 1 2007 1. Operations Abandon Performed: Alter Casing 0 Change Approved Program 0 2. Operator Name: Repair Well Pull Tubing 0 Operat. Shutdown 0 Plug Perforations Perforate New Pool 0 Perforate [2] 4. Well Class Before Work: Development 0 Stratigraphic 0 .AI k Other Waiver 0 Time Extension 0 Re-enter Suspended Well 0 5. Permit to Drill Number: Exploratory 0 203-191 ~ Service 0 6. API Number: 50-133-20531-00-00 missiol Marathon Oil Company 3. Address: PO Box 1949, Kenai Alaska, 99611-1949 7. KB Elevation (ft): 21' RT-GL 9. Well Name and Number: Canne 8. Property Designation: A-060568 11. Present Well Condition Summary: 10. Field/Pool(s): Canne Loo Unit Field Pad 3 Belu a Pool Total Depth measured 10854' . feet true vertical 7992' , feet Effective Depth measured 10854' feet true vertical 7992' feet Casing Length Size MD Structural 124' 20", 129#, K-55 124' Conductor Surface 1793' 13-318", 68#, K-55 1793' Intermediate 7760' 9-518", 40#, L-80 7760' Production Liner 3319' 3-1/2",9.2#, L-80 1 0854' Plugs (measured) N/A Junk (measured) N/A TVD Burst Collapse 124' 1514' 3,450 1,950 4952' 5,750 3,090 7792' 10,160 10,530 Perforation depth: Measured depth: 7,984' - 10,200' True Vertical depth: 5154' - 7328' Tubing: (size, grade, and measured depth) 3.500" 9.2# L-80 7535' Packers and SSSV (type and measured depth) Baker 9-5/8" ZXP liner-top Packer #265-28-0229 @ 7535' 12. Stimulation or cement squeeze summary: N/A Intervals treated (measured): Treatment descriptions including volumes used and final pressure: and N/A 13. Representative Daily Average Production or Injection Data Gas-Mcf Water-Bbl Casing Pressure 4600 100 0 6000 100 0 15. Well Class after work: Exploratory 0 Development [;2] 16. Well Status after work: Oil 0 Gas [2] WAG 0 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Prior to well operation: Subsequent to operation: 14. Attachments: Copies of Logs and Surveys Run Daily Report of Well Operations Oil-Bbl o o Tubing Pressure 686 715 No Logs/Surveys Run Included Service 0 GINJ 0 WINJ 0 WDSPL Sundry Number or N/A if C.O. Exempt: 306-341 o Contact Kevin Skiba (907) 283·1371 Printed Name Signature Title Production Engineer I (907)-283-1333 W Phone (907)-398-1362 C Date 29-Aug-07 RIG J N A LRBDMS BFL SEP 1 0 2D07 fA {,.{dì Submit Original Only . . Page 1 of2 Marathon Oil Company Operations Summary Report Legal Well Name: CANNERY LOOP UNIT 07 Common Well Name: CANNERY LOOP UNIT 07 Event Name: MAINTENANCE/REPAIR Contractor Name: GLACIER DRILLING Rig Name: GLACIER DRILLING From - TO I HØUf$1 Qqdr:f ! c¥dJe. ! I Date Phase I 12/1/2006 11 :00 - 11 :45 CMPPRF 11:45-13:30 1.75 RURD I ELEC CMPPRF 13:30 - 13:45 0.25 SAFETY! MTG CMPPRF I - 13:45 - 14:25 0.67 RURD_IELEC CMPPRF 14:25 - 14:35 0.17 TEST_IPBU_ CMPPRF 14:35 - 15:00 0.42 TEST_ :PBU_ CMPPRF 15:00 - 15:30 0.50 TEST J PBU CMPPRF 15:30 - 16:45 1.25 RUNPU ,ELEC CMPPRF I 16:45 - 17:30 0.75 RUNPUJ ELEC CMPPRF 17:30 - 18:40 1.17 RUNPU~ ELEC CMPPRF 18:40 - 19:15 0.58 RURD_ ELEC CMPPRF I I 19:15 -19:30 0.25 RURD I ELEC CMPPRF 12/3/2006 08:00 - 09:30 1.50 SAFETY MTG_ CMPPRF I i j 09:30 - 10:30 1.00 RURD ! ELEC CMPPRF SAFETY I MTG 10:30 - 11 :00 0.50 CMPPRF I - 11 :00 - 11 :35 0.58 WORK~ELEC CMPPRF ! 11 :35 - 13:00 1.42 WORK~ELEC CMPPRF 13:00 - 14:00 1.00 WORK-fELEC CMPPRF 14:00 - 14:30 0.50 WORK IELEC CMPPRF I 14:30 - 14:55 0.42 WORKJELEC CMPPRF 14:55 - 15:45 0.83 WORK-tELEC CMPPRF I 15:45 - 16:30 0.75 WORK-.lELEC CMPPRF I 16:30-17:15 0.75 RURD_I ELEC CMPPRF 17:15-18:00 0.75 RURD I ELEC CMPPRF 12/9/2006 08:00 - 10:00 2.00 SAFETY I MTG_ CMPPRF 10:00 - 11 :00 1.00 RURD - CMPPRF ! 11:00-11:25 0.42 SAFETY!MTG - CMPPRF Start: 11/30/2006 Rig Release: Rig Number: Spud Date: 12/18/2003 End: Group: Description of Operation$ Arrive at Cannery Loop pad, sign in, obtain work permit and hold PJSM wI JSA Begin rigging up. Hold Explosive Safety meeting Arm 30' of 1-11/16" strip guns, pickup and stab lubricator Pressure test lubricator to 1500 psig "0" ring failed, Change out o-ring Pressure test lubricator to 1500 psig again, test good Start in hole wI perf gun 640 psig @ 5.3 MM before shots Correlate to patch @ 8500' KB Positioned per guns and shot @ 10170' to 10200' KB (30'), POOH OOH, Lay down lubricator, Let well flow thru sand seperator and flow into the test seperator well unloaded approx 8.5 bbls of water and 650 psig WHP into the 300 psi system. 5.6 to 5.8 MM/D gas rate Rig down for the evening. Leave location and sign out. Expro on location, uptained work permit, discussed PJSM and procedure. Started up equipment and discussed safety issues. RU wire line unit, move ASRC crane to be utilized to PU and hold lubricator. Layout gun. Prior to arming gun held and discussed arming procedure and went to communication black out on pad. Arm gun#1 today, Run #2 with 1-11/16" ShoGun 2, 4 spf, 0 deg phased. PU lubricator and armed gun. MU to tree. PT with Methanol, problems with pump. Open well up after PT verified. WHP= 650 psig, 5500 MCFPD rate. RIH with gun. Correlate CCL depth with patch @ 8500' DIL, set on 2-17-2004. On depth with CBL and Reeves induction log dated 01-14-2004. Pull gun up to depth to shoot from 10132' - 10158', 26' gun. Monitor pressure, no change at surface pressure when gun shot. POOH OOH with gun, all shots fired. lay down gun and make up to next gun. Go to communication black out on pad. Arm gun, PU pressure test, test good. Open well RIH with gun#2. Problem getting gun to drop past the devaition at 4800' to 5700' KBD, pinched well back. Continue down hole with gun. Open well back up to production. Correlate depth to same log as above. Pull gun up to depth to shoot from 9942' - 9976', 34' Qun. Monitor pressure at tree, no change in pressure after gun shot. POOH with gun. OOH with gun, all shots fired, blow down lubricator. Lay down spent gun. RD wire line unit. Rig down, left lease. WHP= 760 psig. Expro on location, uptained work permit, discussed PJSM and procedure. Started up equipment and discussed safety issues. RU wire line unit, move ASRC crane to be utilized to PU and hold lubricator. Layout gun. Prior to arming gun held and discussed arming procedure and went to communication black out on pad. Printed: 8/29/2007 12:22:18 PM 11:50-13:18 13:18 - 13:20 13:20 - 14:05 14:15 - 14:30 14:30 - 15:40 15:40 - 15:55 15:55 - 16:50 16:50 - 17:10 17:10-18:05 18:05 - 18:50 18:50 - 20:00 . . Marathon Oil Company Operations Summary Report I WORK I ELEC -,- I I I I I I I CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF Page 2 of 2 Start: 11/30/2006 Rig Release: Rig Number: 1 Spud Date: 12/18/2003 End: Group: Legal Well Name: CANNERY LOOP UNIT 07 Common Well Name: CANNERY LOOP UNIT 07 Event Name: MAINTENANCE/REPAIR Contractor Name: GLACIER DRILLING Rig Name: GLACIER DRILLING Date IFrom<-TOiIJ-0µr$ICQdêl~~~ê Phase 12/9/2006 11 :25 - 11 :50 0.42 WORKJELEC CMPPRF I 1.47 RUNPUYELEC CMPPRF 0.03 WORK-iELEC CMPPRF I I 0.75 WORK-iELEC CMPPRF 0.25 WORK I ELEC 1 RUNPW ELEC 0.25 RUNPUY ELEC 0.92 WORK I ELEC CMPPRF I I 0.33 WORK I ELEC 0.92 RUNPW ELEC 0.75 RUNPU~ ELEC Descri ¡;>tion of Operations Arm gun#1 , Run #1 with 1-11/16" ShoGun 2, 4 spf, 0 deg phased. PU lubricator and armed gun. MU to tree. PT with Methanol. WHP= 680 psig, 4500 MCFPD rate. RIH with gun. Correlate CCL depth. On depth with CBL and Reeves induction log dated 01-14-2004. Pull gun up to depth to shoot from 9838' - 9864', 26' Qun. Monitor pressure, no change at surface pressure when gun shot. 200# loss of string weight when fired. POOH OOH with gun, all shots fired. lay down gun and make up to next gun. Go to communication black out on pad. Arm gun, PU pressure test, test good. Open well RIH with gun#2. Correlate depth to same log as above. Pull gun up to depth to shoot from 9699' - 9714', 15' gun. Monitor pressure at tree, no change in pressure after gun shot. POOH with gun. OOH with gun, all shots fired, blow down lubricator. Lay down spent gun. RD wire line unit. Arm gun, PU pressure test, test good. Open well RIH with gun#3. Correlate depth to same log as above. Pull gun up to depth to shoot from 9658' - 9688', 30' gun. Monitor pressure at tree, no change in pressure after gun shot. POOH with gun. OOH with gun, all shots fired, blow down lubricator. Lay down spent gun. RD wire line unit. Printed: 8/29/2007 12:22:18 PM RT-GL: 21' Tree cxn :: 4-3/4" Otis 3 1/8" 5M tree Tubinq Strinq: Tied back to surface with 9.2 ppf Buttress tubing with 3.5" Injection Mandrel @ 2320' MD, 1,781' TVD with 1/4", 0.049", SS centrolline for Methanol Injection 3-1/2",9.2 ppf, L-80, Hydril 563 liner @ 7587.5 & ZXP liner-top packer # 265-28-0229 top at 7,535' MD Owen isolation Patch 3.5" X-Span patch set 04-17-2004 (min I.D. 2.25") Top of patch at 8500.3', bottom at 8531.0'. Isolating perforations at 8506' - 8526' build from 400 to 1650 at 5 deg /100 60 deg 1,650' to 5,600' drop at 2 deg /100 to 9200' Final Anqle: 1 deg Max DOQleQs (deq/100'): 8.31 @ 1181' Well Name & Number: or Parish: Date Completed: Prepared By: CL 68 ppf K-55, 3450 psi burst set at 1,793' MD, 1,514' TVD. Cmt w/495 sks, 100% returns with 40bbls to surface 9-5/8" 40 ppfL-80 Buttress @ 7,760 MD, 4,952 TVD. Burst 5,750 psi. Cmt wI 250 sks lead (93.6 bbl) and 315 sks tail (65bbl)of class G 7984'-7998' 8227'-8261 ' 9182'-9202' 5' 9328'-9341 ' 2.375" Isolated wi 4/1 2.5" 60 9658' - 9688' 1-11/16" 9699' 9714' -11/16" 9838' - 9864' -11/16" 9942 - 9976' 1-11/16" 10132' - 10158' 1-11/16" 10170' -10200' 1-11/16" ClU-1 rd Kenai Peninsula State/Provo Don Eynon last Revision Date: . . FRANK H. MURKOWSKI, GOVERNOR ALASIiA. OIL AND GAS CONSERVATION COMMISSION 333 W. 7'H AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Michael Mullin Senior Production Engineer Marathon Oil Company PO Box 1949 Kenai, Alaska 99611 Re: Kenai Cannery Loop Field, Beluga Gas Pool, CLU7 Sundry Number: 306-341 '···r'i'd'.¡' r-"~" ¡,),"".Q'"U ~Nt.Ih¿! n ,?: 2005 "," .'" Dear Mr. Mullin: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. .' . When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, DATED thiS¥- day of October, 2006 Encl. Q63-/C, / 111 ¡d~ Marathon Oil Company Ifl.. lð/,/ø~ . Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283·1326 Fax 907/283-1350 September 29,2006 RECEIVED OCT 0 3 2006 Alaska Oil & G C . as ons. Commls;;iûn Anchorage Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W th Ave Anchorage, Alaska 99501 Reference: 10-403 Sundry Notice Field: Cannery Loop Field Well: CLU-7 Dear Mr. Aubert: ¡oj"" \qt We propose to add perforations in 6 intervals in CLU 7 that were identified at the time of / completion. We anticipate improving the ability of the well to unload water with these deeper perforations and to increase production. If you have any questions or need further information please call me at (907) 398·9954. Sincerely, -7;t#/~¿L Michael A. Mullin Senior Production Engineer Enclosures: 10-403 Sundry Notice Well Schematic Operations Procedure cc: AOGCC Houston Well File Kenai Well File MAM D r-3 J / . STATE OF ALASKA -..0 <f../' ALAS Oil AND GAS CONSERVATION COM~N b APPLICATION FOR SUNDRY APPROVALS Alaska Oil & Gas Cons. Comm/;¡:;;¡{.Ji1 ~'ÄLa;bY4tYo(q OCT 0 3 200'1 20 MC 25.280 A . 1. Type of Request: Abandon 0 Suspend 0 Operational shutdown 0 Perforate 0 Waiver 0 Other 0 Alter casing 0 Repair well 0 Plug Perforations 0 Stimulate 0 Time Extension 0 Change approved program 0 Pull Tubing 0 Perforate New Pool 0 Re-enter Suspended Well 0 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: . Marathon Oil Company Development 0 / Exploratory 0 203-191 / 3. Address: Stratigraphic 0 Service 0 6. API Number: PO Box 1949, Kenai Alaska, 99611 50-133-20531-00-00 / 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes 0 No 0 ClU 7 /. 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool( s): ADl60568 21' Gl Cannery loop Unit Field/Beluga Pool 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 10854' 7992 10854' 7992' N/A N/A Casing Length Size MD ./ TVD Burst Collapse Structural 124' 20", 129#, K-55 100' 100' Conductor Surface 1793' 13-3/8",68#, K-55 1793' 1514' Intermediate 7760' 9-5/8", 40#, L-80 7760' 4952' Production Liner 3319' 3-1/2", 9.2#, L-80 10854' 7792' Perforation Depth MD (ft/ Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 7984' - 9385' 5154' - 6513' 3-1/2" 9.2# L-80 7535' Packers and SSSV Type: ZXP liner-top packer #265-28-0229 Packers and SSSV MD (ft): 7535' ./' 13. Attachments: Description Summary of Proposal 0 14. Well Class after proposed work: /. Detailed Operations Program 0 BOP ~.ketch 0 Exploratory 0 Development 0 Service 0 15. Estimated Date for 0-9ct-06 16. Well Status after proposed work: Commencing Operations: Oil 0 Gas 0 Plugged 0 Abandoned 0 17. Verbal Approval: Date: WAG 0 GINJ 0 WINJ 0 WDSPL 0 Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Michael A. Mullin Printed Name Michael A. Mullin Title Senior Production Engineer Signature -?f"~~ ~ Phone (907) 283-1337 Date 29-Sep-06 / Þ /1/ k I / , COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: , 1J.fJ{j .~l Plug Integrity 0 BOP Test 0 Mechanical Integrity Test 0 Location Clearance 0 Other: RBDMS 8Ft 0 Cl Ó 5 2006 Subsequent Form Required: \ 0 - 4D / APPROVED BY //)-'f-DJ; Approved by: THE COMMISSION Date: Form 10-403 Revised 06/20&§) t{í CJ ff\r A L Submit in Duplicate CLU 7 Proposed Perforations RT-GL: 21' Tree cxn = 4-3/4" Otis 3 1/8" 5M tree Tubinq Strinq: Tied back to surface with 9.2 ppf Buttress tubing with 3.5" Injection Mandrel @ 2320' MD, 1,781' TVD with 1/4", 0.049", SS control line for Methanol Injection 3-1/2",9.2 ppf, L-80, Hydril 563 liner @ 7587.5 & ZXP liner-top packer # 265-28-0229 top at 7,535' MD Owen isolation Patch 3.5" X-Span patch set 04-17-2004 (min I.D. 2.25") Top of patch at 8500.3', bottom at 8531.0'. Isolating perforations at 8506' - 8526' Max Hole Anqle: build from 400 to 1650 at 5 deg 1100 60 deg 1,650' to 5,600' drop at 2 deg I 100 to 9200' Final Anqle: 1 deg Max Doqleqs (deq/100'): 8.31 @ 1181' Well Name & Number; County or Parish: Date Completed: Prepared By: J l Drive Pipe: 20" t Surface Casing: 13 3/8" 68 ppf K-55, 3450 psi burst set at 1,793' MD, 1,514' TVD. Cmtw/495 sks, 100% returns with 40bbls to surface Int. Casino: 9-5/8" 40 ppf L-80 Buttress @ 7,760 MD, 4,952 TVD. Burst 5,750 psi. Cmt wi 250 sks lead (93.6 bbl) and 315 sks tail (65bbl)of class G Perforations: 2.375" HSD, 4spf, 60 deg, 9.0grm 7984'-7998' 8227'-8261' 8320'-8353' 8506' 8526' Isolated wI Owen patch 8929'-8969' 9068'-9096' 9182'-9202' 9295'-9315' 9328'-9341' *reperf'd 4/17/04, 2.5" 6spf, 60 deg 9353.5'-9385' Prod. Liner; Cmt wi 885 sks 15.8 ppg Class G (50 bbl to surface). TD 10,854 MD, 7992 TVD. In 7" open hole. Dennis Donovan CLU-7 Kenai Peninsula Borough State/Provo Last Revision Date; . . (!4) Friday September 22, 2006 Marathon Oil Company Alaska Region CLU7 Cannery Loop Unit Add Perfs Production Program WBS# WO.06.14336.EXP History: This well has been producing on average 5.0-5.5 MMCFD up until the beginning of September 2006. Currently production has dropped to 4.0-4.5 MMCFD. Water rate has slowly climbed up in the past month, making it harder to keep production strong. Objective: Add production from possible perforations identified from original pay. These / . perforation additions were planned after partial depletion. Procedure: 1. Hold safety meeting! JSAlprejob checklist with Marathon and Expro personnel. Crane safety will be discussed and designated signal person will be in place. 2. MIRU E-line Unit 3. Hold explosives safety meeting. 4. Arm 1-11/16" OD Strip Gun 5. RIH wi Guns to specified depths (shooting bottoms up) Run # TD TVD Perf. Length 1 10170'-10200' 7298'·7328' 30' perfs 2 10132'·10158' 7260'·7286' 26' Derfs 3 9942'·9976' 7070'·7104' 34' Derfs 4 9838'·9864' 6966'-6992' 26' Derfs 5 9699'·9714' 6827'-6842' 15' perfs 6 9658'·9688' 6786'-6816' 30' perfs / 6. Flow test after every two runs. This gives the ability to identify wet zones and be able to fix the problem rather than compound it. 7. RDMO E-line unit. . ~) Marathon ,MARATHON Oil Company . Alaska Asset Team Northern Business Unit P.O. Box 3128 Houston, TX 77253 Telephone 713-296-2384 Fax 713-499-8504 March 1, 2006 Alaska Oil & Gas Conservation Commission Attn: Howard Oakland 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 FEDERAL EXPRESS RECEIVED MAR 0 2 Z006 RE: Marathon Cannery Loop Unit 7 CONFIDENTIAL Alaska Oil & Gas Cons. Commission Anchorage Dear Mr. Oakland: The enclosed CD contains the following well data for the above referenced well (see attachment). CLU 1RD Directional Data ............................................................................................................ digital ~~~~l; ~~~~I::a................................ ..................................................................... digital l!] cluJ _dir _~ur _aogcc.las (N "'u "'"') \jJ \, l ¿.' or- ~ v v"''. 1m UZProgr am Files _Reeves _Logging_Data_Mar athon_ CLU-7 . dpk Please indicate your receipt of this data by signing below and 'returning one copy to me at the letterhead address. Thank you, 1í~ð)J1Ø'*Ê )'IL,-- Kaynell Zemartj Geological Technician # / 3 )-'13 Received by: Date: I) IJ DiU IJrMXÑN'. Enclosure fi/~ J-..()$-J'lt ~¡ ¡v'ton-k DATA SUBMITTAL COMPLIANCE REPORT 2/6/2006 Permit to Drill 2031910 Well Name/No. CANNERY LOOP UNIT 7 Operator MARATHON OIL CO API No. 50-133-20531-00-00 MD 10864 TVD 7992 Completion Date 2/21/2004 Completion Status 1-GAS Current Status 1-GAS UIC N REQUIRED INFORMATION Mud Log No Samples No Directional Survey Yes DATA INFORMATION Types Electric or Other Logs Run: Well Log Information: (data taken from Logs Portion of Master Well Data Maint Log/ Data Type I I Electr Digital Dataset Med/Frmt Number . Name Sample Log Log Run Scale Media No Interval OH / Start Stop CH Received Comments Well Cores/Samples Information: Name Cuttings Interval Start Stop 5900 10864 Sent Sample Set Received Number Comments "- 4/22/2004 1135 ADDITIONAL INFORMATION Well Cored? Y~ Chips Received? ~ Daily History Received? ~N ~N Formation Tops Analysis Received? Y~ ---~---- . Comments: ~\N'~~ Kûw) ~ l:-~ VV'''''__, kJ L~ W\.C,,,,- @.. ItvtÇ!"" c~ .'''' ¡' 1 ,t.~ """ V> 1"",1-, \ 1,' ~~'>AJ~ I ~J~J :11, Compliance Reviewed By: -}tG ____~ i) .'ÎtJ;¡,~ ~~ _-I.A.. IJ ¡'J /U ~ d 3 r-=:L--- ÀO~ Date: · -- Alaska Region Domestic Production P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/564-6489 (!!!, Marathon Oil Company April 28,2004 Winton Aubert Alaska Oil & Gas Conservation Commission 333 West ih Ave, Suite 100 Anchorage, AK 99501 REC¡::IVFD MAT 0 3 2.004 Reference: Alaska Oil & Gas Cons. Commission Completion Report 10-407 for permit 203-19" Anchorage Field: Cannery Loop Unit Well: CLU # 7 Dear Mr. Aubert, Enclosed please find the Sundry completion report 10-404 for Cannery Loop 7 The completion form for Sundry 10-404 is attached. The lower set of perforations were re- perforated from 9328' - 9341' with positive results. An isolating packer was set across the top set of perforations from 8506' - 8526' because a PL T showed most of the water was entering the well bore at this perforations. The well is currently producing at 7045 MCFP with 45 BWPD, 1450 psig at the well head. Should you require further information, I can be reached at 907-283-1308 or bye-mail at wecissell@MarathonOil.com. Sincerely, Wayne Cissell Engineering Technician Enclosures: Wellbore Diagram CC: Stan Porhola (BLM) o ~ , G , t\fA , 1. Operations Performed: Abandon 0 Alter CasingD Change Approved ProgramD 2. Operator Name: Marathon Oil Company 3. Address: . STATE OF ALASKA e ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY OPERATIONS RECEIVED MAY 0 3 2004 Suspend 0 RepairwellD Pull TUbingD Operation ShutdownD Plug perforations[8] Perforate New PoolD 4. Current Well Class: DevelopmentU StratigraphiCD P.O. Box 196168, Anchorage, AK 99519-6168 7. KB Elevation (ft): 42' RKB Elev. (21' Above GL) 8. Property Designation: ADL - 60568 11. Present Well Condition Summary: AlaskaJliL& Gas Gons. CommÎ:):¡¡-m perforate[8] VarianceU Arttfleftlgt!sposalD StimulateD Time ExtensionD OtherD Re-enter Suspended Well 0 ExPloratoryD SeNiceD 5. Permit to Drill Number: 203-191 6. API Number: 50- 133-20531 9. Well Name and Number: CLU 7 10. Field/Pools(s): Total Depth MD (ft.) measured 10,854' feet true vertical 7,992' feet Effective Depth measured feet true vertical feet Casing Length Size MD Structural Conductor 127' 20" 127' Surface 1796' 13 3/8" 1796' Intermediate 7760' 95/8" 7760' Production Liner 1 0,854' 3 1/2" 10,854' Perforation depth: Measured depth: 8506 - 9385' True vertical depth: 5644 - 5513' Cannery Loop Unit-Beluga Plugs (measured) Junk (measured) TVD Burst Collapse 124' 1515' 3,450 1,950 4952' 5,750 3,090 7,992' 10,160 10,530 Tubing: (size, grade, and measured depth) 3.5" L-80 ** Set isolation packer from 8500· to 8532' MD, isolating perforations from 8506 . 8526' MD Packers and SSSV (type and measured depth) N/A Intervals treated (measured): 12. Stimulation or cement squeeze summary: 7,535' Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casin9 Pressure Prior to well operation: Subsequent to operation 14. Attachments: Copies of Logs and Surveys Run Daily Report of Well Operations Tubing Pressure 15. Well Class after proposed work: Exploratory 0 Development ~ Service 0 16. Well Status after proposed work: Oil 0 Gas~ WAGD GINJD WINJDWDSPLD 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name t ~ne Cissell Signature VW1 µ..! Form 10-404 Revised 2/~003 lMJÆ2 ¡¿R OR\G\NAL Phone SUndry Number or N/A if C.O. Exempt: 304-113 Title Engineering Technician 907-283- 1305 Date 4/28/2004 fIJDMs BF.L HAY O.J "(¡In API :50-133-20531-00-00 AOGCC: 203-191 RT-GL: 21' ... Tree cxn = 4-3/4" Otis 31/8" 5M tree Tubing String: Tied þack to surface with 9.2 ppf Buttress tubing with 3.5" Injection Mandrel @ 2320' MD, 1,781' TVD with 1/4", 0.049", SS control line for Methanol Injection 3-1/2", 9.2 ppf, L-80, Hydril 563 liner @ 7587.5 & ZXP liner-top packer # 265-28-0229 top at 7,535' MD Owen isolation Patch 3.5" X-Span patch set 04-17-2004 (min I.D. 2.25") Top of patch at 8500.3', bottom at 8531.0'. Isolating perforations at 8506' - 8526' Max Hole Anqle: build from 400 to 1650 at 5 deg /100 60 deg 1,650' to 5,600' drop at 2 deg / 1 00 to 9200' Final Anqle: 1 deg Max Doqleqs (deq/1 00'): 8.31 @ 1181' Well Name & Number: County or Parish: Date Completed: Prepared By: CLU-1rd Kenai Peninsula Borough I State/Provo Don Eynon I Drive Pipe: 20" to 124' ... Surface Casinq: 133/8" 68 ppf K-55, 3450 psi burst set at 1.793' MD, 1,514' WD. Cmt w/495 sks, 100,,/0 returns with 40bbls to surface Casinq: 9-5/8" 40 ppf L-80 Buttress @ 7,760 MD, 4,952 TVD. Burst 5,750 psi. Cmt w/ 250 sks lead (93.6 bbl) and 315 sks tail (65bbl)of class G Perforations: 2.375" HSD guns, 4 SPF, 60 deg. Phased, 9.0 grams charges 8506- 8526 8929- 8969 9068-9096 9182- 9202 9295- 9315 9328- 9341 *reperforated 04-17-2004 2.5",6 SPF, 60 deg phase 9353.5- 9385 P~r: Cmt w/ 885 sks 15.8 ppg Class G (50 bbl to surface). TD 10,854 MD, 7992 WD. In 7" open hole. Lease Alaska ---þo Cannery Loop, pad #1 c~1 USA RKB: I 01/24/041 Last Revision Date: · Alaskaeess Unit Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/564-6489 April 22, 2004 Alaska Oil & Gas Conservation Commission Attn: Howard Oakland 333 w. ih Avenue, Suite 100 Anchorage, AK 99501 Delivered by Courier RE: Marathon Oil Company CONFIDENTIAL Well Sa!llP~ ~I '3 ç- Marathon Cannery Loop No.7. .:z IJ> -f;/(~ ':I. '1 Marathon Paxton No. 1 .20'Î-öfð . Marathon Falls Creek No.4 :J. ó J - ~).. ! di I f ~ J Marathon Kasilof South No. 1RD .10 ~- '). \~(,. 1\;' 0 Marathon KasilofSouth No. LlL ~:;.- )\-1 -,;J;ì \ I "':, \ The following CONFIDENTIAL well samples are being forwarded to AOGCC as shown on the attached listi. When the samples have arrived, please confirm your receipt by signing one copy of this letter and returning to my attention at the letterhead address. Thank you, Kaynell Zeman Technical Assistant Received by: 1)/ . fA I N-rrw'tv0 (J~ Date: d ~ ~ ~ '-'l ,-// r r: c Gr") . Marathon Cannery Loop No.7 (CLU 7) CONFIDENTIAL Cannery Loop Unit, Cook Inlet, Alaska Sec. 7, T -5-N, R-ll- W, Seward Meridian API #: 50133205310000 8 Boxes - Well Samples Cannery Loop #7 Well Samples Depth From Depth To (Feet) (Feet) 5,900 7,080 7,080 7,990 7,990 8,590 8,590 9,090 9,090 9,690 9,690 10,190 10,190 10,550 10,550 10,864 Box No. lA 2A 3A 4A 5A 6A 7A 8A . Page 2 ft II ~)- ~~ -l~ l . "(~ )0 " Marathon Cannery Loop No.7 (CLU 7) CONFIDENTIAL Cannery Loop Unit, Cook Inlet, Alaska Sec. 7, T-5-N, R-ll-W, Seward Meridian API #: 50133205310000 8 Boxes - Well Samples Cannery Loop #7 Well Samples Depth From Depth To (Feet) (Feet) 5,900 7,080 7,080 7,990 7,990 8,590 8,590 9,090 9,090 9,690 9,690 10,190 10,190 10,550 10,550 10,864 Marathon Paxton No.1 (pAX 1) CONFIDENTIAL Ninilchik Unit, Cook Inlet, Alaska Sec. 13, T-1-S, R-14-W, Seward Meridian API #: 50133205350000 8 Boxes - Well Samples Paxton #1 Well Sam)les Depth From Depth To (Feet) (Feet) 1,905 2,900 2,900 3,980 3,980 5,100 5,100 6,280 6,280 7,420 7,420 8,660 8,660 9,993 9,492 10,115 Box No. 1A 2A 3A 4A 5A 6A 7A 8A Box No. 1 2 3 4 5 6 7 8 Marathon Falls Creek No.4 (FC 4) CONFIDENTIAL Ninilchik Unit, Cook Inlet, Alaska Sec. 6, T-1-S, R-12-W, Seward Meridian API #: 50133205330000 6 Boxes - Well Samples Falls Creek #4 Well Samples Depth From Depth To (Feet) (Feet) 1,860 2,960 2,960 3,940 3,940 5,000 5,000 6,040 6,040 7,000 7,000 7,910 Box No. 1 2 3 4 5 6 . Page 2 . ~..# Marathon Kasilof South No. lrd (KAS lrd) AND Marathon Kasilof South No. LIL (KAS LlL) (lateral portion) KasilofUnit, Cook Inlet, Alaska Sec. 28, T-3-N, R-12-W, Seward Meridian KAS lrd API #: 5013320520000 KAS LlL API#: 50133205200600 12 Boxes - Well Samples Kasilof#lrd Well Samples Depth From Depth To (Feet) (Feet) 9,940 10,700 10,700 11,340 11,340 11,820 11,820 12,400 12,400 13,200 13,200 14,100 14,100 15,000 15,000 15,860 15,860 16,280 16,280 16,830 16,830 17,320 17,320 17,545 Box No. lA 2A 3A 4A 5A 6A 7A 8A 9A lOA 11A 12A Kasilof#LlL (lateral) Well Samples 10,580 11,220 lA 11,220 12,080 2A 12,080 12,760 3A 12,760 13,660 4A 13,660 14,520 5A 14,520 15,400 6A 15,400 16,400 7A 16,400 17,160 8A 17,160 17,665 9A . Page 3 CONFIDENTIAL CONFIDENTIAL . ~ e 'M.. ') lV!arathon . ,MARATHON Oil Company e Alaska Region Domestic Production P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/564-6489 April 7, 2004 Winton Aubert State of Alaska Alaska Oil & Gas Conservation Commission 333 West ¡th Ave, Suite 100 Anchorage, AK 99501 Reference: Sundry Application Field: Cannery Loop Unit Well: CLU #7 Permit No: 203-191 RECEIVED APR - 8 2004 Alaska Oil & Gas Cons. Commission Anchorage Dear Mr. Aubert Enclosed please find the APPLICATION FOR SUNDRY APPROVAL, along with the associated attachments. Marathon Oil started the non-rig completion with perforation of/' several Beluga intervals when our wire line provider was unable to continue providing services for several weeks. During this time we put the well on production at 5460 MCFPD with 1490 FTP and 125 bwpd. A production log was then used identify intervals with water production. Analysis indicated the uppermost interval (8506-8526 MD) was the source. We have decided re-perforate from 9,328-9,341' MD and then isolate the water producing interval with a Owen tubing patch. After flow testing the well the ....--- remaining intervals will be perforated. We plan to start operations pending your approval. The 10-407 Completion Report and Log with attachments and cover page accompanied this submittal. If you require further information, I can be reached at 907-283-13370r bye-mail at DEEynon@MarathonOil.com. Sincerely, Èfr.-.M r Donald Eynon Enclosures 0. e STATE OF ALASKA e ALASKA Oil AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL 20 MC 25.280 , 1. Type of Request: AbandonD Suspend wellD Alter Casing D Repair wellD Change Approved ProgramD 2. Operator Name: 3. Address: Pull TUbingD Marathon Oil Company P.O. Box 196168, Anchorage, AK 99519-6168 7. KB Elevation (ft): 42' RKB Elev. (21' Above Gl) 8. Property Designation: ADl - 60568 11. Total Depth MD (ft.) Irotal Depth TVD (ft): length Casing Structural Conductor Surface Intermediate Production liner Perforation Depth MD (ft): 8,506-9,385 Packers and SSSV Type: 127' 1796' 7760' 20" 13 3/8" 9 5/8" 10854' 3 1/2" perfOration Depth TVD (ft): 5,644-6,513 Operation ShutdownD perforateŒ] \I-16Pr 4-1 t¡¿.oo4 (J)¡rf 1-/ã / tJ- varianceD Annular DisposalD Plug perforationsŒ] StimulateD Time ExtensionD Perforate New poolD 4. Current Well Class: Development!!:] stratigraPhicD OtherD Re-enter Suspended wellD 5. Permit to ~Number: 203-191 6. API Number: 50- 133-20531 / EXPloratoryD serviceD 9. Well name and number: ClU 7 / 10. Field/Pools(s): Cannery loop Unit-Beluga PRESENT WELL CONDITION SUMMARY Effective Depth MD (ft): Effective Depth TVD (ft): Size MD TVD 127' 1796' 7760' 124' 1515' 4952' 10,854' 7,992' Tubing Size: Tubing Grade: 3.5" l-80 Packers and SSSV MD (ft): N/A 12. Attachments: Description Summary of Proposal~ Detailed Operations Program IRJ BOP Sketch --0 14. Estimated Date for Commencing Operations: April 13,2004 / N/A Plug (measured): Junk (measured): Burst Collapse 3,450 5,750 1,950 3,090 10,161 10,531 Tubing MD (ft.): 7535' 13. Well Class after proposed work: Exploratory D Development IRJ Service 0 15. Well Status after proposed work: Oil D GaslRJ PluggedD 16. Verbal Approval Date: WAG 0 GINJD Commission Representative 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Donald Eynon Signature ~Œ~/~ Title Operations Engineer Phone 283-1337 Commission Use Only Conditions of approval: Notify Commission so that a representative may witness SUndry Number: Plug Integrity D D Mechanical Integrity Test D location Clearance D Other: lc:?- 404 Approved y: RBDMS 8Ft APR 1 3 200~ BY ORDER OF COMMISSIONER THE COMMISSION ORIGINAL AbandonedD WINJD WDSPL o Date 7·Apr-04 ."::5'" L' (/ - / <::.) RECEIVED APR - 8 2004 Alaska Oil & Gas Cons. Commissio 1 ( Apcj1J~ge' Date: If/ /1jrl / 8"bm' 'e t,,,,,,, ,. ,. f' e e MARATHON OIL COMPANY ALASKA BUSINESS UNIT Cannery Loop Field Cannery Loop Unit #7 Revised Completion Procedure 4/5/2004 WBS # DD.03.09502.CAP .CMP .02 Non-Rig 3-1/2" Monobore (01-25-2004) Ri2 Completion: 3-1/2" 9.2 ppf Hydril563 liner below a ZXP packer and liner hanger has been cased and cemented. A 3-1/2", mod IBT tubing string with seal ~ assembly has been run and tied into the liner. ~~i=;~~;~ì~~te~J~:~a~~ a:~: ~~:::lioPp~~~ms~~::. and water rates will interfere with CCL log. Interval from 9328-9341' MD (13') ~ill be re-perforated and then the interval from 8503'- 8524' J\.1I)~ll be patched with a OWEN tubing patch. Produce well to sales overnight checking for gas and water rates while monitoring well head pr¡;:ssure. Remaining i1}tervals ( 8320-;8,353, 33 ft ; 8227-8261,34 f1.; 7984-7998, 14 ft.) willtñen be perforated. Return well to Production. PROCEDURE 1. Hold safety and environmentç¡,l awareness rn®ting. 2. MI Expro wire line service with full lubricator (PUlTIP in sub and flow tubes), and BOPE. a. Perform joint safety meeting outlining job procedures and concerns. / b. Pressure test lubricator and equipment to 2500 psi with methanol. PU and RIH with CCL and 2.375" HSD guns loaded 4 SPF 60 degree-phased with 9.0 gram charges to perforate: 9,328-9,341' MD (13') API target performance is .22" E.H with 20.58" TTP penetration. Correlate depth to Reeves CBL log dated 17-February-2004. / c. RU Owens Oil Tools 3.5" 9.2 ppf casing patch 30' long by 2.25" ID. RIH and correlate to reeves C~L 2/17/2004, Set patch across perforated interval from 8506' - 8526' MD. / 3. Flow test well overnight. Produce at no more than a 50% drawdown (1300 psi / flowing WHP) is permitted for this interval. The theoretical unloading rate up 3-1/2" CLU #7 Non-Rig Completion Procedure Page 1 '.i- e e casing is 3.4 MMCFGPD @ 1,300 psig FCP (1550 psi at perfs). Consult Anchorage office D. Brimberry for drawdown limitations 907-564-6402. 4. RU Expro wireline service with full lubricator (pump in sub and flow tubes), and pressure control equipment. Hold safety and environmental awareness meeting. PU and RIH with CCL and 2.375" HSD guns loaded 4 SPF 60 degree-phased with 9.0 gram charges to perforate: 8320-8353 8227-8261 7984-7998 33 ft 34 ft. 14 ft / 5. Turn well to sales following completion of testing. RDMO well testers. Release rental equipment and return to vendors. CONTACTS Ken Walsh: 907-283-1311 (w) David Brimberry: 907-268-5660 (P) 907-394-3060 (c) 907-564-6402 (w) 907-529-0527 (c) Don Eynon: 907-283-1337 (w) Paul Williams: 907-398-9954 (c) 907-260-6456 (h) 907-564-6403 (w) Ben Schoffinann: 907-564-6325 (w) Wayne Cissell: 907-283-1308 (w) 877 -950- 7 590 (p) 907-283-4825 (h) CLU #7 Non-Rig Completion Procedure Page 2 * API: 50-133-20531-00-00 AOGCC: 203-191 RT -GL: 21' AI Tree cxn = 4-3/4" Otis 3 1/8" 5M tree Tubing String: Tied Pack to surface with 9.2 ppf Buttress tubing with 3.5" Injection Mandrel @ 2320' MD, 1,781' WD with 1/4",0.049", SS control line for Methanol Injection 3-1/2",9.2 ppf, L-80, Hydril 563 liner @ 7587.5 & ZXP liner-top packer # 265-28-0229 top at 7,535' MD Remaining intervals to be perforated 8320-8353, 33 ft 8227-8261,34 ft 7984-7998, 14 ft CLU7 Drive Pipe: 20" to 124' .. Surface Casinq: 13 3/8" 68 ppf K-55, 3450 Psi burst set at 1,793' MD, 1,514' WD. Cmt w/495 sks, 100% returns with 40bbls to surface / Casinq: 9-5/8" 40 ppf L-80 Buttress @ 7,760 MD, 4,952 WD. Burst 5,750 psi. Cmt wI 250 sks lead (93.6 bbl) and 315 sks tail (65bbl)of class G t: Perforations: 2.375" HSD guns, 4 SPF, 60 deg. Phased, 9.0 grams charges 8526 8969 9096 9182- 9202 9295- 9315 9328- 9341 9353.5- 9385 Owen 40' tubing patch from 8,501' to 8,531' Max Hole Anqle: build from 400 to 1650 at 5 deg Ii 00 60 deg 1,650' to 5,600' drop at 2 deg / 100 to 9200' Final Anqle: 1 deg Max Doqleqs (deq/100'): 8.31 @ 1181' Well Name & Number: County or Parish: Date Completed: Prepared By: Prod. Liner: Cmt wI 885 sks 15.8 ppg Class G (50 bbl to surface). TD 10,854 MD, 7992 TVD. In 7" open hole. CLU-1 rd Kenai Peninsula Borough I State/Provo Don Eynon Lease Alaska Cannery Loop, pad #1 Country: 1 USA RKB: I 01/24/041 Last Revision Date: e 'M..") lV!arathon ',MARATHON 011 Company e Alaska Region Domestic Production P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/564-6489 April 7, 2004 Winton Aubert Alaska Oil & Gas Conservation Commission 333 West ih Ave, Suite 100 Anchorage, AK 99501 Reference: Completion Report 10-407 for permit 203-191 Field: Cannery Loop Unit Well: CLU # 7 Dear Mr. Aubert, Enclosed please find the Well Completion or Recompletion Report with associated attachments. Cannery Loop 7 has been completed with a liner and liner hanger packer with a 3.5" production string to surface. I apologize for the delay in getting out this completion notice. An application for Sundry Approval 10-403 is attached for isolating the top set of perforations with a Owen tubing patch and for the completion of perforating the remaining intervals. Should you require further information, I can be reached at 907-283-1337 or bye-mail at DEEynon@MarathonOil.com. Sincerely, j)v-L( ;7- . Donald Eynon Operations Engineer Enclosures: Completion Report Directional Survey Operations Summary Wellbore Diagram RECEIVED APR - g 2004 Alaska Oil & Gas Cons. COImission Anchorage CC: Stan Porhola (BLM) Sent: Courier ORIGINAL · ,.. e STATE OF ALASKA e ALASKA Oil AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG OilO GINJ 0 WINJO Gas~ PIUggedOAbandoned 0 20AAC 25.105 WDSPLO No. of Completions 1a. Well Status: 2. Operator: Name: Marathon Oil Company 3 Address: P.O. Box 196168, Anchorage, AK 99519-6168 4a. Location of Well (Governmental Section): Surface: 184' FSL, 194' FEL, Sec. 7, T5N, R11W, S.M. Top of Productive Horizon: 4,378' FSL, 3,717 FWL, Sec 8, T5N, R11W, S.M. Total Depth: 4,465' FSL, 3,,814 FWL, Sec 8, T5N, R11W, S.M. 4b. Location of Well (State Base Plane Coordinates): Surface: x- 272,776.575' y. 2,388,631.433' Zone- TPI x· 276779.2 Zone- y. 2,392,772.83.59' Total Depth x- 276,877.19' y- 2,392,857.87' 18. Directional Survey: Yes~ NOO 21. Logs Run: Zone· Gamma I Neut Dens I Comp Sonic I Induction Resist. Suspended 0 WAGO 20AAC25.110 Other 5. Date Comp., Susp., or Aband: 21·Feb·04 6. Date Spudded: 20-Dec-03 7. Date TD Reached: 13·Jan-04 8. KB Elevation (ft.): 42' RKB Elev. (21' Above GL) 9. Plug Back Depth (MD + TVD): 10,776' MD, 7905 TVD 4 10. Total Depth (MD+TVD): 10864 MD, 7992' TVD 11. Depth where SSSV Set: 1b. Well Class: Development ~ EXPloratOryO Service 0 Stratigraphic TestO Permit to Drill Number: 203-191 API Number: 50· 133-20531 14. Well Name and Number CLU 7 15. Field/Pool(s): Cannery Loop Unit·Beluga 16. Property Designation: ADL - 60568 17. Land Use Permit: N/A 20. Thickness of Permafrost: N/A 22. CASING, LINER AND CEMENTING RECORD CASING wr. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT SIZE FT. TOP BOTTOM TOP BOTTOM PULLED 20" 129# K-55 0' 124' Surface Driven NIA N/A 133/8" 68# K-55 0' 1796' Surface 1515' 16" 495 sks N/A 95/8" 40# L-80 0' 7760' Surface 4952' 121/4" 565 sks N/A 31/2" 9.2# L-80 7535' 10,854' 4756' 7,992' 7" 885 sks N/A 23. Perforations Open to Production (MD + TVD of Top and Bottom Interval, Size, and Number; if none, state "none"): MD (8506- 8526, 8929- 8969,9068- 9096, 9182- 9202, 9295- 9315 9328- 9341, 9353.5- 9385) TVD ( 5644-5663,6058-6098,6196-6224,6310-6330,6423-6443, 6456-6469,6482-6513) 4 NIA feet MD 19. Water Depth, if Offshore: N/A feet MSL 4 24. SIZE 3.5" TUBING RECORD DEPTH SET (MD) 7535' PACKER SET (MD) 7535' 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED N~ N~ 26. Date of First Production: 2/21/2004 Hours Tested: 24 PRODUCTION TEST IMethod of Operation (Flowing, Gas Lift, etc.): Flowing Oil-Bbl: Gas- MCF: Water-Bbl: 5,460 Gas· MCF: Water·Bbl: Date of Test: 12/20/2003 Production for Test Period -~ Calculated 24·Hour RatE-~ Oil-Bbl: Flow. Tubing Press: 1,490 27. Casing Pressure o CORE DATA Choke Size: GaS-NO/iIARatio: 125 NIA oil Gravity - API (corr): RCCelVCD Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas, or water (attach separate sheet, if ness<j[Y,). R _ 8 2004 Submit core chips; if none, state "none". A. r None ~..........;,;.;..¡'..._..~-',.....,--_..........'..,-.".~ C;ÜM?LLC,~C>i f ~ -o/iJ~71 I ~ I Form 10407 Re"'~~í.f!L:,~.:j ORtGtNAL Alaska Oil & Gas Cons. Commission Anchorage CONTINUED ON REVERSE SIDE RBDNS tjf;L AVR 12 1M' , ~ {.JY' c , ~ e e 28. NAME GEOLOGIC MARKERS MD 29. FORMATION TESTS TVD Include and briefly summarize test results. List intervals tested. and attach detailed supporting data as necessary, If no tests were conducted, state "None". Sterling 6649' 4052' None Beluga 7984' 5155' RECEIVED APR - 8 2004 Alaska Oil & Gas Cons. Commission Anchorage 30. List of Attachments: Well bore diagram, directional survey, detailed operations summary 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Signature ~j~ Title Operations Engineer Phone 907·283-1337 Date 7 -Apr-04 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 a: 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 28: List all test information. If none, state "None". Form 10-407 Revised 4/2003 OR\G\NAL API :50-133-20531-00-00 AOGCC: 203-191 RT -GL: 21 ' AI Tree cxn::;: 4-3/4" Otis 3 1/8" 5M tree Tubinq String: Tied back to surface with 9.2 ppf Buttress tubing with 3.5" Injection Mandrel @ 2320' MD, 1,781' TVD with 1/4", 0.049", SS control line for Methanol Injection 3-1/2", 9.2 ppf, L-80, Hydril 563 liner @ 7587.5 & ZXP liner-top packer # 265-28-0229 top at 7,535' MD Max Hole Anqle: build from 400 to 1650 at 5 deg /100 60 deg 1,650' to 5,600' drop at 2 deg /100 to 9200' Final Anqle: 1 deg Max Doqleqs (deq/100'): 8.31 @ 1181' Well Name & Number: County or Parish: Date Completed: Prepared By: CLU CLU-1rd Kenai Peninsula Borough I State/Provo Don Eynon I Drive Pipe: 20" to 124' .. Surface Casinq: 13 3/8" 68 PPf K-55,3450 psi burst set at 1,793'MD, 1,514' TVD. Cmt w/495 sks, 100% returns with 40bbls to surface Casinq: 9-5/8" 40 ppf L-80 Buttress @ 7,760 MD, 4,952 TVD. Burst 5,750 psi. Cmt w/ 250 sks lead (93.6 bbl) and 315 sks tail (65bbl)of class G Perforations: 2.375" HSD guns, 4 SPF, 60 deg. Phased, 9.0 grams charges 8506- 8526 8929-8969 9068- 9096 9182- 9202 9295- 9315 9328- 9341 9353.5- 9385 Prod. Liner: Cmt w/885 sks 15.8 ppg Class G (50 bbl to surface). TD 10,854 MD, 7992 TVD. In 7" open hole. Lease Alaska Cannery Loop, pad #1 Country: I USA RKB: I 01/24/041 Last Revision Date: e e Dailv Summary for Well: CANNERY LOOP UNIT 7 Report Date Report M D Number TVD Summary ........................................................................................................................................................................................................................................... Drilling Event 16-Dec-03 124 124 Moving rig FI BC 13 TI CLU 7 17 -Dec-03 2 124 124 Rig up pits & pump modules - Move carrier fl Beavercreek to canery loop, spot & rig up - Raise & secure derrick 18-Dec-03 3 124 124 Plan spud late evening 19-Dec-03 4 124 124 Cont rig up, complete NU diverter, prepare for diverter test 20-Dec-03 5 244 244 RU, test diverter, MU BHA, spud well, drill ahead 16" hole 21-Dec-03 6 850 844 Drill to 304, wk on pump, drill to 545, poh for ako, drill to 727, wk on elect system, drill to 850 ft 22-Dec-03 7 1,796 1,515 Drillling, wiper trip, drill TO 1796, wiper trip 23-Dec-03 8 1,796 1,515 POH, rig service, cut drlg line, RIH, circ I cond, POH, run 13318 csg, circ, RIH stab in string, circ I cond 24-Dec-03 9 1,796 1,515 Circ I cond, POH, cmt 133/8, POH 5" DP, nipple dn diverter, install csg hd, nipple up BOPE 25-Dec-03 10 1,816 1,515 Nipple up BOPE, test, RIH 12 1/4 drctnl assy, drill float collar, test csg, drill shoe track 1 20 new formation, D ,.,Ji,,""I_....._ ..._11 h_..._ u,:f."'" nt='I_D..._" ....1...1,... ,fl. .:"¡ 26-Dec-03 11 2,609 1,900 LOT, PU 5" dp, circ, drill ahead 12 114 hole 27 -Dec-03 12 3,867 2,534 Drlg, wiper trip, drlg, wiper trip. 28-Dec-03 13 4,807 2,986 Drill ahead, circ, POH for MWD, MU new motor I MWD assy 29-Dec-03 14 5,183 3,172 MU HA, RIH to shoe, rig repair, RIH, drill ahead, circ for POH 30-Dec-03 15 5,990 3,609 Circ, POH, repair top drv, RIH, drill ahead 31-Dec-03 16 6,123 3,694 Drill to 6123, Circ, POH, test BOPE, repair hyd system, RIH 01-Jan-04 17 7,133 4,420 RIH w/12 1/4" BHA. Drill f/6123' to 7133'. C & C mud. Wiper trip to 13 3/8" shoeD 02-Jan-04 18 7,451 4,420 Wiper Trip to 133/8" shoe. Work on Top Drive. RIH. Drill f/7133 to 7451' 03-Jan-04 19 7,780 4,970 Drill 12 1/4" Hole f/7451, to 7780'. C & C Holè. Wiper Trip to 5500'. RIH to 7780'. C & C Hole. POOH fl 9 5/8" Csg Printed - 4/7/2004 e Dailv Summary for Well: Report Date Report MD Number e CANNERY LOOP UNIT 7 TVD Summary ..........................................................................................................................................................................................................................................' 04-Jan-04 20 7,780 05-Jan-04 21 7,780 06-Jan-04 22 7,800 07-Jan-04 08-Jan-04 23 7,800 24 8,592 4,970 Finish POOH & LID 12 1/4 Drlg Ass'y. Install & test 9 5/8 Rams. R/U & Run 9 5/8 Csg 4,970 Land 9 5/8 esg @ 7760', Cmt wI 250 sks of Lead & 315 sks of tail, CIP @ 15:56. WOC & Clean pits 4,987 Clean Pits, P/U 8 1/2 Clean out Ass'y, Test 9518 esg to 3000 psi. Drlg emt, Shoe track & 20'of new hole Perform LOT(13.1 EMW) Displace hole wI new mud 4,987 Finish displacing hole & building pit volume wI new FloPro Mud. POOH. Test BOP,s. M/U 6" BHA. RIH 5,721 Finish Trip in Hole wI DOSRWD Ass'y. Drlg 7" Hole Printed - 4/7/2004 e e Dailv Summary for Well: CANNERY LOOP UNIT 7 Report Report MD TVD Summary Date Number ..............................................................................................................................................................................................,...........................................' 09-Jan-04 25 8,989 5,721 Drlg 7" Hole to 8625'. Make Wiper Trip to 9 5/8 shoe. Service Rig. RIH. Drlg ahead 10-Jan-04 26 9,475 6,603 Drlg to 9093'. Wiper Trip to 9518 Shoe @ 7760. Pump Sweep. RIH. Drlg ahead 11-Jan-04 27 10,034 7,162 Drill 7" Hole to 10034'. POOH fl Failed Mud Mtr. RIH wI New Mtr, Same Bit & BHA 12-Jan-04 28 10,557 7,686 Finish Trip fl New Mud Mtr - Drlg 7" Hole fl 10034' to 10557, 13-Jan-04 29 10,864 7,992 Drlg 7" Hole fl 10557 to 10658. Wiper Trip to Shoe. Drlg to TO at 10864. C & C Hole fl logs 14-Jan-04 30 10,864 7,992 Wiper Trip to Shoe @ 7760' & back to Btm @10864' - C & C f/logs - POOH - LID BHA - P/U Reeves Logging Tools on DP - Trip in Hole 15-Jan-04 31A 10,864 7,992 RIH for logs, circ, log well Rig Completion Event 15-Jan-04 31B 10,864 7,992 TIH 4" DP, POH laying dn 4" DP 1 HWDP 16-Jan-04 32 10,864 7,992 LD 4" DP, RU, run 3112 Iiner/5" DP. 17 -Jan-04 33 10,864 7,992 Thaw equip, run I cmt 3 1/2 liner, POH 18-Jan-04 34 10,864 7,992 POH 5" DP, layout cmt equip, RIH PBR mill assy, dress PBR, mix comp fluids 19-Jan-04 35 10,864 7,992 Mix I displace comp fluids, test liner, POH laying dn 5" DP, RU for tbg run 20-Jan-04 36 10,864 7,992 Run tbg, displace, land hgr, test tbg 1 annulus, 21-Jan-04 37 10,864 7,992 Land tbg, NID BOPE, N/U tree, test, release rig 22-Jan-04 38 10,864 7,992 Prepare CLU #8, RDMO, begin MIRU on CLU #8 Non-Rig Completion Event 25-Jan-04 10,854 7,992 RU slickline Tag at 9482' KBD. RDMO slickline. 15-Feb-04 2 10,854 7,992 MIRU CT unit. Test BOPE. 16-Feb-04 3 10,854 7,992 Clean out to TO, circulate clean, POOH. Stand back CT. 17 -Feb-04 4 10,854 7,992 RU wire line to run a CBL Printed - 4/7/2004 - Dailv Summary for Well: Report Date Report M D Number e CANNERY LOOP UNIT 7 TVD Summary 18-Feb-04 ,..............................................................................................................................................................,........................................................................... 7,992 MU BJ CT on tree to clean out and blow tubing dry 19-Feb-04 20-Feb-04 21-Feb-04 10-Mar-04 5 10,854 6 10,854 7 10,854 8 10,854 2 10,854 7,992 RU Wireline to perofrate well 7,992 RU Wire line, perforate well 7,992 Continue with perforating well 7,992 Perform memory PL T logging operation. Printed - 4/7/2004 e MARATHON Oil Company Pad #1 CLU-7 CLU-7 Cannery Loop Unit Cook Inlet, Alaska SUR V E Y LIS TIN G by Baker Hughes INTEQ Your ref Our ref License MWD <0-10864> svy7008 e Field is centred on n60 31 54.076,wI51 15 37.735 Structure is centred on n60 31 54.076,wI51 15 37.735 Reference North is True North Slot location is n60 31 55.960,wI51 15 41.853 Slot Grid coordinates are N 2388631.433, E 272776.575 Slot local coordinates are 191.32 N 206.04 W Projection type: alaska - Zone 4, Spheroid: Clarke - 1866 Date printed Date created Last revised 14-Jan-2004 5-Jan-2004 13-Jan-2004 e MARATHON Oil Company Pad #1, CLU-7 Cannery Loop Unit,Cook Inlet, Alaska Measured Inclin Depth Degrees 0.00 197.00 257.00 318.00 378.00 0.00 0.47 0.15 0.48 1. 87 438.00 499.00 561.00 621. 00 681. 00 3.10 4.03 4.91 6.62 9.68 742.00 804.00 868.00 930.00 993.00 12.81 15.41 18.87 22.96 26.98 1056.00 1119.00 1181. 00 1244.00 1306.00 28.80 33.01 37.99 40.03 44.29 1368.00 1432.00 1494.00 1557.00 1621.00 47.90 51. 62 53.20 56.27 57.81 1684.00 1747.00 1870.00 1996.00 2059.00 58.19 59.26 57.31 61. 03 60.35 2121.00 2184.00 2247.00 2311.00 2374.00 59.73 59.62 59.81 60.32 61.61 2499.00 2562.00 2625.00 2688.00 2751. 00 61. 30 61. 30 61. 63 61. 68 61. 34 2812.00 2876.00 2939.00 3001.00 3064.00 60.81 62.09 61. 66 61. 40 61.10 3128.00 3191.00 3254.00 3317.00 3380.00 60.41 60.89 60.92 60.47 60.66 Azimuth Degrees 42.71 239.13 258.19 13.31 38.09 39.84 41.31 45.15 41. 77 42.67 43.70 45.19 47.14 45.98 46.14 46.72 44.98 42.39 44.03 42.65 42.50 42.42 42.82 42.63 41.46 43.49 41. 60 41. 91 41. 69 43.21 43.21 42.48 42.68 42.79 41.46 43.43 42.94 43.30 43.29 42.73 44.61 41.78 44.34 43.45 41.75 43.49 43.20 43.55 43.85 41. 50 True Vert Depth 0.00 197.00 257.00 318.00 377.98 437.92 498.81 560.62 620.31 679.70 739.52 799.64 860.79 918.70 975.80 1031.48 1085.52 1135.98 1184.93 1230.88 1273.87 1315.21 1353.03 1389.40 1424.22 1457.60 1490.31 1554.97 1619.53 1650.37 1681.34 1713.14 1744.92 1776.85 1807.43 1867.16 1897.42 1927.51 1957.43 1987.48 2016.98 2047.57 2077.28 2106.83 2137.13 2168.40 2199.28 2229.92 2260.75 2291.72 SURVEY LI STING Your ref Last revised R E C TAN G U L A R COO R DIN ATE S Dogleg Vert DegllOOft Sect O.OON 0.41S 0.56S 0.32S 0.69N 2.71N 5.58N 9.09N 13.48N 19.77N 28.43N 39.21N 52.25N 67.48N 85.93N 106.23N 128.79N 154.84N 183.73N 214.00N 246.90N 282.93N 319.08N 356.87N 396.74N 436.15N 475.82N 553.87N 634.52N 675.05N 714.20N 754.07N 794.13N 834.87N 875.72N 956.74N 997.04N 1037.44N 1077.79N 1118.28N 1156.90N 1197.88N 1238.47N 1277.75N 1318.40N 1359.49N 1399.43N 1439.44N 1479.16N 1519.50N O.OOE 0.69W 0.98W 1.00W 0.34W 1. 30E 3.78E 7.10E 11. 22E 16.94E 25.09E 35.69E 49.31E 65.36E 84.51E 105.87E 129.05E 153.87E 181. 03E 209.57E 239.78E 272.76E 306.02E 340.92E 376.88E 412.95E 449.35E 519.03E 591. 13E 628.20E 664.98E 701. 96E 738.77E 776.41E 813.35E 887.45E 925.26E 963.09E 1001.12E 1038.89E 1075.75E 1114.22E 1152.15E 1189.93E 1227.32E 1265.13E 1302.82E 1340.63E 1378.58E 1415.77E 0.00 0.24 0.55 0.92 2.41 0.00 -0.78 -1. 08 -0.92 0.27 e Page 1 MWD <0-10864> 13-Jan-2004 G RID COO R D S Easting Northing 272776.57 272775.87 272775.58 272775.57 272776.25 272777.93 272780.46 272783.84 272788.05 272793.89 272802.21 272813.01 272826.88 272843.22 272862.71 272884.45 272908.07 272933.38 272961.08 272990.20 273021.03 273054.69 273088.64 273124.25 273160.97 273197.79 273234.94 273306.10 273379.72 273417.57 273455.08 273492.82 273530.39 273568.80 273606.51 273682.15 273720.73 273759.32 273798.11 273836.65 273874.24 273913.48 273952.18 273990.71 274028.87 274067.46 274105.90 274144.47 274183.18 274221.13 2388631.43 2388631.03 2388630.90 2388631.13 2388632.13 2388634.11 2388636.94 2388640.39 2388644.70 2388650.88 2388659.38 2388669.95 2388682.72 2388697.64 2388715.72 2388735.61 2388757.72 2388783.29 2388811.66 2388841. 38 2388873.68 2388909.08 2388944.58 2388981.69 2389020.87 2389059.57 2389098.54 2389175.24 2389254.49 2389294.30 2389332.74 2389371.89 2389411.23 2389451.24 2389491.38 2389570.97 2389610.52 2389650.19 2389689.81 2389729.56 2389767.47 2389807.70 2389847.56 2389886.10 2389926.03 2389966.39 2390005.59 2390044.88 2390083.86 2390123.47 All data in feet unless otherwise stated. Calculation uses minimum curvature method. Coordinates from CLU-7 and TVD from RKB (Glacier#l) (42.00 Ft above mean sea level). Bottom hole distance is 5865.00 on azimuth 43.11 degrees from wellhead. Vertical section is from wellhead on azimuth 43.01 degrees. Grid is alaska - Zone 4. Grid coordinates in FEET and computed using the Clarke - 1866 spheroid Presented by Baker Hughes INTEQ 2.05 1. 53 1. 50 2.90 5.10 2.87 6.66 11.49 17.51 26.02 5.14 4.23 5.48 6.63 6.38 37.91 53.02 71.84 93.93 120.48 2.92 6.83 8.39 3.63 7.03 149.89 182.20 218.19 257.84 299.44 5.83 5.81 2.60 4.88 2.85 344.10 392.94 442.07 493.50 547.19 2.80 3.08 1. 60 2.96 2.36 600.61 654 .45 759.05 867.20 922.13 1. 00 1. 02 0.41 0.81 2.76 975.85 1030.23 1084.63 1140.09 1195.16 1. 41 0.68 0.73 0.08 0.95 1304.95 1360.21 1415.56 1471. 01 1526.38 2.83 4.37 3.65 1. 33 2.41 1579.76 1635.97 1691.52 1746.02 1801. 25 2.61 0.86 0.49 0.83 3.26 1857.08 1912.00 1967.05 2021.98 2076.84 e MARATHON Oil Company Pad #1,CLU-7 Cannery Loop Unit,Cook Inlet, Alaska Measured Inclin Depth Degrees 3444.00 3507.00 3570.00 3632.00 3694.00 60.24 60.70 60.60 59.68 60.00 3757.00 3821.00 3883.00 3945.00 4009.00 60.15 60.37 60.30 59.88 60.05 4072.00 4134.00 4196.00 4260.00 4321.00 61. 31 61. 57 60.83 61. 34 61. 35 4383.00 4446.00 4509.00 4571.00 4634.00 60.48 60.97 61. 12 61.88 61.96 4697.00 4759.00 4822.00 4883.00 4947.00 61.29 61. 49 62.64 62.28 60.54 5010.00 5073.00 5137.00 5200.00 5262.00 59.84 59.28 58.67 58.89 58.87 5325.00 5386.00 5448.00 5510.00 5573.00 58.59 58.24 58.05 58.44 58.35 5633.00 5696.00 5759.00 5822.00 5885.00 57.12 56.83 56.43 55.31 54.15 5948.00 6012.00 6076.00 6138.00 6203.00 53.42 52.75 52.78 51. 01 49.89 6266.00 6327.00 6389.00 6456.00 6520.00 48.62 48.20 46.77 46.08 44.48 Azimuth Degrees 41.44 43.28 42.79 43.40 41.79 41.16 43.56 44.18 42.98 42.57 44.89 44.69 44.24 44.86 44.93 43.51 42.49 44.68 44.42 42.26 44.61 41.80 41. 08 41.16 42.53 42.16 42.01 41.73 41. 35 42.27 42.17 42.51 42.27 41. 61 41. 55 41.80 42.26 43.53 45.20 45.09 45.07 45.87 46.23 46.83 44.56 43.92 44.17 43.87 43.89 42.96 True Vert Depth 2323.28 2354.33 2385.21 2416.08 2447.23 2478.66 2510.41 2541.10 2572.02 2604.05 2634.90 2664.54 2694.41 2725.36 2754.61 2784.75 2815.56 2846.06 2875.64 2905.30 2935.24 2964.93 2994.45 3022.65 3053.28 3084.60 3116.52 3149.50 3182.16 3214.20 3246.90 3278.85 3311. 57 3344.20 3377.22 3409.25 3443.58 3478.24 3513.59 3549.96 3587.19 3625.63 3664.35 3702.61 3744.00 3785.12 3825.61 3867.51 3913.69 3958.73 R E C TAN G U L A R COO R DIN ATE S 1561.21N 1601. 71N 1641.85N 1681.12N 1720.58N 1761. 49N 1802.54N 1841.38N 1880.31N 1920.98N 1960.66N 1999.31N 2038.08N 2078.01N 2115.93N 2154.75N 2194.94N 2234.87N 2273.70N 2314.12N 2354.37N 2394.04N 2435.77N 2476.51N 2518.38N 2558.78N 2599.09N 2639.93N 2680.25N 2719.82N 2759.69N 2798.10N 2837.00N 2876.21N 2916.35N 2954.24N 2993.48N 3032.02N 3069.31N 3105.58N 3141.47N 3177.36N 3212.72N 3246.29N 3281.28N 3315.48N 3348.27N 3381.13N 3416.12N 3449.14N 1452.64E 1489.57E 1527.05E 1563.78E 1600.06E 1636.22E 1673.66E 1711.00E 1748.04E 1785.67E 1823.64E 1862.01E 1900.06E 1939.36E 1977.15E 2014.93E 2052.41E 2090.41E 2128.64E 2166.78E 2204.88E 2242.14E 2278.98E 2314.55E 2352.03E 2388.85E 2425.25E 2461.86E 2497.59E 2532.97E 2569.16E 2604.16E 2639.66E 2674.89E 2710.50E 2744.23E 2779.60E 2815.41E 2851.87E 2888.33E 2924.32E 2960.80E 2997.48E 3032.88E 3068.75E 3102.05E 3133.77E 3165.53E 3199.17E 3230.43E e SURVEY LISTING Page 2 Your ref MWD <0-10864> Last revised 13-Jan-2004 Dogleg Deg/l00ft 0.66 2.64 0.70 1. 71 2.30 2132.49 2187.30 2242.22 2295.99 2349.59 Vert Sect G RID Easting COORDS Northing 2390164.47 2390204.26 2390243.67 2390282.22 2390320.98 2390361.19 2390401.52 2390439.63 2390477.84 2390517.78 2390556.73 2390594.63 2390632.67 2390671.83 2390709.02 2390747.11 2390786.58 2390825.76 2390863.85 2390903.54 2390943.05 2390981.99 2391023.00 2391063.06 2391104.20 2391143.88 2391183.49 2391223.62 2391263.25 2391302.13 2391341. 30 2391379.03 2391417.24 2391455.77 23914 95.21 2391532.45 2391571.00 2391608.85 2391645.43 2391681.00 2391716.19 2391751.37 2391786.03 2391818.90 2391853.21 2391886.75 2391918.93 2391951.18 2391985.51 2392017.93 All data in feet unless otherwise stated. Calculation uses minimum curvature method. Coordinates from CLU-7 and TVD from RKB (Glacier#l) (42.00 Ft above mean sea level). Bottom hole distance is 5865.00 on azimuth 43.11 degrees from wellhead. Vertical section is from wellhead on azimuth 43.01 degrees. Grid is alaska - Zone 4. Grid coordinates in FEET and computed using the Clarke - 1866 spheroid Presented by Baker Hughes INTEQ 0.90 3.27 0.88 1. 81 0.61 2404.17 2459.73 2513.60 2567.33 2622.74 3.78 0.51 1. 35 1.16 0.10 2677.66 2732.09 2786.40 2842.40 2895.90 2.44 1. 61 3.05 1. 28 3.03 2950.07 3005.02 3060.14 3114.60 3170.18 3.45 3.99 2.09 0.60 3.31 3225.61 3280.03 3335.67 3389.72 3445.90 1. 22 0.91 1. 02 0.62 1. 27 3500.56 3554.87 3609.71 3663.56 3716.63 0.46 0.74 0.45 1. 10 0.16 3770.47 3822.43 3875.09 3927.80 3981.44 2.08 0.77 1. 80 2.82 1. 85 4032.16 4084.97 4137.58 4189.72 4241.11 1.16 1. 45 0.45 2.95 3.20 4291. 91 4343.03 4393.91 4442.61 4492 . 66 2.16 0.75 2.33 1. 03 2.70 4540.38 4586.00 4631.69 4680.22 4725.69 274258.79 274296.49 274334.72 274372.20 274409.23 274446.16 274484.38 274522.45 274560.24 274598.63 274637.36 274676.45 274715.24 274755.30 274793.80 274832.32 274870.56 274909.32 274948.28 274987.19 275026.06 275064.06 275101.69 275138.03 275176.31 275213.89 275251. 06 275288.44 275324.93 275361.07 275398.01 275433.73 275469.97 275505.95 275542.32 275576.77 275612.88 275649.42 275686.58 275723.73 275760.40 275797.56 275834.91 275870.95 275907.48 275941.43 275973.77 276006.15 276040.45 276072.34 e MARATHON Oil Company Pad #1, CLU-7 Cannery Loop Unit,Cook Inlet, Alaska Measured Inclin Depth Degrees 6582.00 6645.00 6708.00 6770.00 6832.00 6895.00 6959.00 7022.00 7085.00 7148.00 7208.00 7271. 00 7333.00 7394.00 7457.00 7520.00 7584.00 7644.00 7707.00 7729.00 7779.00 7841. 00 7904.00 7966.00 8029.00 8092.00 8156.00 8219.00 8282.00 8344.00 8407.00 8468.00 8530.00 8592.00 8655.00 8716.00 8778.00 8840.00 8904.00 8967.00 9030.00 9094.00 9157.00 9220.00 9284.00 9348.00 9410.00 9474.00 9537.00 9600.00 43.98 42.81 42.63 42.22 41.21 40.39 39.30 37.93 36.94 36.64 35.64 34.60 33.56 32.60 31.77 31.12 29.91 28.96 27.96 27.87 26.92 26.17 25.25 24.80 23.53 22.21 21. 14 20.54 19.82 19.23 17.71 16.58 16.17 14.74 12.73 11.67 10.32 8.55 7.50 6.49 Azimuth Degrees 43.10 42.20 42.15 41. 98 42.04 42.37 42.78 42.62 43.74 42.78 42.83 42.87 42.98 42.81 42.63 43.19 42.52 42.83 42.81 42.71 43.10 41.44 41. 66 40.85 40.90 40.00 40.49 41. 96 42.23 42.50 43.90 43.30 43.16 42.74 44.74 46.04 44.34 43.25 45.16 42.42 4.99 3.13 1. 28 1. 30 1.18 43.53 45.37 49.34 53.94 60.86 True Vert Depth 4003.15 4048.93 4095.21 4140.98 4187.26 4234.95 4284.09 4333.31 4383.34 4433.79 4482.24 4533.77 4585.12 4636.24 4689.55 4743.30 4798.44 4850.69 4906.08 4925.52 4969.91 5025.37 5082.14 5138.32 5195.79 5253.84 5313.31 5372.19 5431. 33 5489.76 5549.51 5607.80 5667.29 5727.04 5788.24 5847.86 5908.72 5969.88 6033.25 6095.78 6158.47 6222.30 6285.25 6348.24 6412.22 6476.21 6538.20 6602.19 6665.18 6728.18 R E C TAN G U L A R COO R DIN ATE S 3480.75N 3512.59N 3544.26N 3575.31N 3605.97N 3636.46N 3666.66N 3695.55N 3723.48N 3750.95N 3776.91N 3803.48N 3828.92N 3853.31N 3877 .97N 3902.04N 3925.86N 3947.54N 3969.56N 3977.12N 3993.97N 4014.47N 4034.92N 4054.64N 4074.14N 4092.77N 4110.81N 4127.67N 4143.80N 4159.11N 4173.66N 4186.68N 4199.42N 4211.51N 4222.33N 4231. 38N 4239.71N 4247.04N 4253.45N 4258.98N 4263.59N 4266.84N 4268.50N 4269.38N 4270.13N 4270.73N 4271.22N 4271. 76N 4272.32N 4272.96N 3259.94E 3289.27E 3317.97E 3345.99E 3373.60E 3401.25E 3428.99E 3455.66E 3481.86E 3507.72E 3531. 76E 3556.41E 3580.07E 3602.73E 3625.50E 3647.87E 3669.98E 3689.96E 3710.37E 3717.36E 3733.02E 3751. 66E 3769.79E 3787.08E 3803.96E 3819.85E 3835.12E 3849.88E 3864.45E 3878.41E 3892.07E 3904.47E 3916.44E 3927.70E 3938.03E 3947.20E 3955.59E 3962.63E 3968.86E 3974.17E 3978.46E 3981.62E 3983.38E 3984.49E 3985.66E 3986.72E 3987.59E 3988.48E 3989.38E 3990.20E Dogleg Deg/100ft SURVEY LISTING Your ref Last revised 0.82 2.10 0.29 0.69 1. 63 4768.94 4812.22 4854.96 4896.78 4938.03 e Page 3 MWD <0-10864> 13-Jan-2004 Vert Sect G RID COO R D S Easting Northing 276102.45 276132.38 276161.68 276190.29 276218.48 276246.71 276275.02 276302.23 276328.96 276355.34 276379.88 276405.03 276429.17 276452.29 276475.53 276498.36 276520.91 276541.31 276562.13 276569.27 276585.25 276604.28 276622.79 276640.46 276657.71 276673.95 276689.56 276704.65 276719.52 276733.77 276747.70 276760.35 276772.56 276784.05 276794.58 276803.93 276812.48 276819.66 276826.00 276831. 42 276835.80 276839.02 276840.81 276841.94 276843.12 276844.19 276845.07 276845.97 276846.88 276847.71 2392048.97 2392080.23 2392111.35 2392141. 86 2392171.98 2392201.93 2392231.59 2392259.97 2392287.39 2392314.36 2392339.86 2392365.95 2392390.93 2392414.88 2392439.09 2392462.73 2392486.12 2392507.41 2392529.04 2392536.46 2392553.01 2392573.15 2392593.25 2392612.63 2392631.80 2392650.12 2392667.87 2392684.44 2392700.29 2392715.33 2392729.62 2392742.40 2392754.90 2392766.77 2392777.39 2392786.27 2392794.43 2392801.62 2392807.91 2392813.34 2392817.87 2392821.05 2392822.69 2392823.54 2392824.27 2392824.84 2392825.33 2392825.85 2392826.39 2392827.01 All data in feet unless otherwise stated. Calculation uses minimum curvature method. Coordinates from CLU-7 and TVD from RKB (Glacier#l) (42.00 Ft above mean sea level). Bottom hole distance is 5865.00 on azimuth 43.11 degrees from wellhead. Vertical section is from wellhead on azimuth 43.01 degrees. Grid is alaska - Zone 4. Grid coordinates in FEET and computed using the Clarke - 1866 spheroid Presented by Baker Hughes INTEQ 1. 00 0.85 1.02 0.91 0.98 60.71 59.36 58.85 57.10 47.00 1. 35 1. 75 2.18 1. 91 1. 03 4979.19 5020.19 5059.51 5097.80 5135.53 1. 67 1. 65 1. 68 1.58 1. 33 5170.91 5207.16 5241.90 5275.19 5308.75 1.13 1. 96 1. 60 1. 59 0.46 5341. 61 5374.11 5403.59 5433.62 5443.92 1. 93 1. 70 1. 47 0.91 2.02 5466.92 5494.62 5521. 95 5548.16 5573.93 2.17 1. 70 1. 26 1.15 0.96 5598.39 5622.00 5644.40 5666.13 5686.85 2.51 1. 87 0.66 2.31 3.28 5706.81 5724.79 5742.27 5758.79 5773.74 1. 80 2.24 2.87 1. 69 1. 69 5786.62 5798.44 5808.60 5817.53 5825.20 2.39 2.91 2.94 0.17 0.30 5831. 50 5836.03 5838.45 5839.85 5841.19 0.28 0.24 0.27 0.18 0.29 5842.35 5843.30 5844.31 5845.33 5846.35 e e MARATHON Oil Company SURVEY LISTING Page 4 Pad #1,CLU-7 Your ref MWD <0-10864> Cannery Loop Unit,Cook Inlet, Alaska Last revised 13-Jan-2004 Measured Inclin Azimuth True Vert R E C TAN G U L A R Dogleg Vert G RID C o 0 R D S Depth Degrees Degrees Depth C 0 0 R D I N ATE S Deg/100ft Sect Easting Northing 9663.00 1. 04 46.95 6791. 17 4273.72N 3991. OlE 0.10 5847.46 276848.54 2392827.76 9726.00 0.84 48.69 6854.16 4274.42N 3991.77E 0.32 5848.49 276849.31 2392828.44 9789.00 1.13 44.03 6917.15 4275.17N 3992.55E 0.48 5849.57 276850.11 2392829.17 9851. 00 0.90 43.90 6979.14 4275.96N 3993.31E 0.37 5850.67 276850.88 2392829.95 9913.00 0.66 57.25 7041.13 4276.50N 3993.95E 0.48 5851. 50 276851. 53 2392830.48 9976.00 0.94 45.31 7104.13 4277.06N 3994.62E 0.51 5852.37 276852.22 2392831.03 10039.00 0.87 58.65 7167.12 4277.67N 3995.40E 0.35 5853.35 276853.00 2392831.62 10103.00 0.47 57.70 7231.11 4278.07N 3996.04E 0.63 5854.07 276853.65 2392832.00 10166.00 0.72 49.52 7294.11 4278.46N 3996.56E 0.42 5854.71 276854.17 2392832.39 10229.00 0.56 59.11 7357.11 4278.88N 3997.12E 0.30 5855.40 276854.75 2392832.79 10289.00 0.78 66.79 7417.10 4279.19N 3997.75E 0.40 5856.06 276855.38 2392833.09 10352.00 0.60 71.79 7480.10 4279.46N 3998.46E 0.30 5856.74 276856.09 2392833.35 10413.00 0.85 72.68 7541.09 4279.69N 3999.19E 0.41 5857.41 276856.83 2392833.57 10475.00 0.93 69.61 7603.09 4280.01N 4000.10E 0.15 5858.26 276857.75 2392833.87 10538.00 1.12 70.02 7666.08 4280.39N 4001.16E 0.30 5859.27 276858.81 2392834.23 10601.00 1.18 78.66 7729.06 4280.73N 4002.37E 0.29 5860.34 276860.03 2392834.55 10664.00 1.20 84.49 7792.05 4280.92N 4003.67E 0.19 5861.37 276861.33 2392834.72 10725.00 1. 30 86.48 7853.04 4281. 03N 4004.99E 0.18 5862.35 276862.66 2392834.79 10788.00 1. 47 82.66 7916.02 4281.17N 4006.51E 0.31 5863.49 276864.18 2392834.91 10864.00 1. 47 82.66 7991.99 4281.42N 4008.44E 0.00 5864.99 276866.11 2392835.12 All data in feet unless otherwise stated. Calculation uses minimum curvature method. Coordinates from CLU-7 and TVD from RKB (Glacier#l) (42.00 Ft above mean sea level). Bottom hole distance is 5865.00 on azimuth 43.11 degrees from wellhead. Vertical section is from wellhead on azimuth 43.01 degrees. Grid is alaska - Zone 4. Grid coordinates in FEET and computed using the Clarke - 1866 spheroid Presented by Baker Hughes INTEQ . . e MARATHON Oil Company Pad #1,CLU-7 Cannery Loop Unit,Cook Inlet, Alaska MD TVD ------------------------------------------------------------------------------------------~---------------- 10864.00 7991.99 Top MD Top TVD Comments in we11path -------------------- -------------------- Rectangular Coords. Comment e SURVEY LISTING Page 5 Your ref MWD <0-10864> Last revised ; 13-Jan-2004 Rectangular Coords. Bot MD Bot TVD ======~======================= Casing 0.00 O.OON O.OOE 1793.00 1514.07 4281.42N 4008.44E Projection to TD Rectangular Coords. 0.00 ----------------------------------------------------------------------------------------------------------- 475.53E 13 3/8" Target name Casing positions in string 'A' 505.24N Geographic Location T.V.D. Targets associated with this wellpath Revised ===================================== Rectangular Coordinates ----------------------------------------------------------------------------------------------------------- CLU#7 U Beluga CLU#7 M Beluga CLU#7 Tyonek CLU#7 TD 276756.880,2392748.770,0.0000 276756.880,2392748.770,0.0000 276756.880,2392748.770,0.0000 276756.880,2392748.770,0.0000 5112.00 5772.00 7742.00 7992.00 4l92.99N 4192.99N 4192.99N 4192.99N 3900.88E 3900.88E 3900.88E 3900.88E 25-Sep-2003 25-Sep-2003 25-Sep-2003 25-Sep-2003 · (IDJ -' ffi~ IE lr~ FRANK H. MURKOWSKI, GOVERNOR AI,-'SIiA. OIL AND GAS CONSERVATION COMMISSION Willard Tank Senior Drilling Engineer Marathon Oil Company PO Box 196168 Anchorage AK 99519 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501·3539 PHONE (907) 279-1433 FAX (907) 271)..7542 Re: Cannery Loop Unit Field CLU #7 Marathon Oil Company Permit No: 203-191 Surface Location: 184' FSL, 194' FEL, Sec. 7, T5N, RllW, SM Bottomhole Location: 796' FNL, l436' FEL, Sec. 8, T5N, RllW, SM Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the 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 3l.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's North Slope petroleum field inspector at 659-3607 (pager). Sincerel .. BY ORDER OF THE COMMISSION DATED thisl1~ay of November, 2003 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. Exploration, Production and Refineries Section e wGA- Illl "12-003 e STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 Me 25.005 1a. Type of Work: Drill0 Re-entryD RedrillD 1 b. Current Well Class: Stratigraphic TestD 2. Operator Name: Marathon Oil Company 3. Address: P.O. Box 196168, Anchorage, AK 99519-6168 4a. Location of Well (Governmental Section): Surface: 184' FSL, 194' FEL, Sec. 7, T5N, R11W, S.M. Top of Productive Horizon: 1,008' FNL, 1,661' FEL, Sec. 8, T5N, R11W, S.M. Total Depth: 796' FNL, 1,436' FEL, Sec. 8, T5N, R11W, S.M. 4b. Location of Well (State Base Plane Coordinates): Surface: x- 272,776.575' y- 2,388,631.433' Zone- 4 16. Deviated Wells: Kickoff Depth: 250 18. Casing Program: Size Casing 20" 133/8" 9 5/8" 3 1/2" 60.50 0 It. Maximum Hole Angle: Specifications Hole Driven EXPloratoryD ServiceD Development oilD Development Gas0 Multiple Zone D Single Zone 0 5. Bond: 0Blanket D SinglewellD 11. Well Name and Number: Bond No. 5194234 CLU #7 /" 6. Proposed Depth: MD: 10,863' TVD: 7,991' 7. Property Designation: ADL 60568,324602,605831,604650 / 8. Land Use Permit: 12. Field/Pool(s): Cannery Loop Unit Field Beluga Pool 13. Approximate Spud Date: 12/14/2003 / 14. Distance to Nearest Property: 400' (ADL 324602) 15. Distance to Nearest Well within Pool: 2,350' NIA 9. Acres in Property: (440.310), (427.829), (66.140), (57.25) 10. KB elevation (Height Above GL): 42 (21' above GL) 17. Anticipated Pressure (see 20 AAC 25.035) feet Max. Downhole Pressure: 4,488 Setting Depth psig. Top Bottom Max. Surface Pressure: 2,682 Quantity of Cement c.f. or sacks. (Including Stage Data) psig. Weight 129# 68# 40# 9.2# Grade Coupling Length MD TVD MD TVD K-55 PE +1- 100' 0' 0' 100' 100' K-55 BTC 1,758' 0' 0' 1,800' 1,515' L-80 BTC 7,705' 0' 0' 7,747' 4,940' L-80 Hydrill563 3,313' 7,550' 4,766' 10,863' 7,991' PRESENT WELL CONDITION SUMMARY (to be completed for Redrill and Re-Entry Operations) Total Depth TVD (It.) Plugs (measured) Effective depth MD (It) Effective Depth TVD(It): + I - 494 sks. + 1- 510 sks. + 1- 857 sks. 16" 121/4" 7" 19. Total Depth MD (It): Casing Length Perforation Depth MD (It): 20. Attachments: Filing Fee0 BOP Sketch 0 Property Plat0 Diverter Sketch 0 21. Verbal Approval: Commission Representative: 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. Senior Drilling Engineer Printed Name Willard J. Tank ;/,1 '"1/, j" ( /L ~ /b'¡/),/..)ß/ ,)' .~~ / ¡,;. Signature Junk (measured) Size Cement Volume MD TVD Perforation Depth TVD (It): Drilling Program 0 Time v. Depth PlotD Shallow Hazard AnalysisD Seabed ReportD Drilling Fluid Program 0 20 AAC 25.050 RequirementsD Date: Contact Title Phone 907-564-6310 Date 11/17/2003 Permit to Drill Number: .;2 <..) '- Conditions of approval: Commission Use Only I:~I N¡~:?: ,"5 -...2. () S 3 J 1~:;:itAPproval Samples required DYes "ØNO Mud log required DYes ~NO I See cover letter for other requirements. æJNO DNO Hydrogen sulfide measures Other: "T€.Çt ßoPt fa 300c;> pÇl. Approved by: Original Signed By Sarah Palin Form 10-401 Revised 3/2003 /1!¡q/017 DYes Directional survey required ~Yes COMMiSSIONER BY ORDER OF THE COMMISSION I 'I ¡C¡o0 Date: Submit in duplicate ORIGINAL e e MARATHON ~ MARATHON Oil COMPANY DRilliNG PROGRAM Cannery loop Unit ClU #7 Revised 11/17/03 Originator: W.J. Tank l~ t/ Drilling Superintendent: North America Drilling Manager: P.K. Berqa B.J. Roy Page 1 of 13 e e Table of Contents General Well Data........................................................................................................................... ........................................3 Geologic Program Summary......................................................................................................................... ..........................3 Summary of Potential Drilling Hazards......................................................................................................................... ...........4 Formation Evaluation Summary.............................................................................................. ................................................4 Drilling Program Summary............................................................................................................................ ..........................5 Casing Program....................................................................................................................... ................................................6 Casing Design .............................................................................................................................. ...........................................6 Maximum Anticipated Surface Pressure.............................................................................. ...................................................6 BOPE Program........................................................................................................................ ................................................8 Wellhead Equipment Summary........................................................................................................................... ...................9 Directional Program Summary............................................................................................................................ ....................9 Directional Surveying Summary........................................................................................................................... .................10 Drilling Fluid Program Summary......................................................................................................................... ..................10 Drilling Fluid Specifications.................................................................................................................. ..................................11 Solids Control Equipment....................................................................................................................... ...............................11 Cement Program Summary........................................................................................................................... ........................12 Hydraulics Summary......................................................................................................................... ....................................12 Formation Integrity Test Procedure........................................................................................................................... ............13 Page 2 of 13 General Well Data Well Name Surfacé Location Slot/Pad KB Elev. Ground Level Elev. Perm. Datum Water Depth Water Protection Depth Comments: e e CLU #7 184' FSL, 194'FEL,Sec. 7, T5N, R11W, S.M. Lease/License WBS Code Spud Date API No. Well Class Rig Contractor Rig Name DD.03.09502.CAPDRL 12/14/03 (est.) CLU Pad 1 Field Cannery Loop Unit 42 County/Province Kenai Peninsula 21 State / Country Alaska KB Total MD 10,863' N/A Total TVD 7,991' Development Glacier Drilling #1 Geoloaic Proaram Summary MD - RKB TVD - RKB Formation (ft) (ft) Sterling A-8 (Pool 3) (Not a Prod Target) 6,742 4,112 Sterling C-1 (Not a Prod Target) 7,747 4,940 Upper Beluga (Primary Target) 7,938 5,112 Middle Beluga (Secondary Target) 8,635 5,772 Lower Beluga (Secondary Target) 9,394 6,522 . ~ Sandstone Gas Upper Tyonek (Not a Prod Target) 10,614 7,742 8.7 ~ Coal, Silt, Shale Gas Comments: The well plan calls for stopping drilling before reaching Tyonek T-1 underpressured sandstone (approximately 3.3 ppg). Gas shows with associated high pressure in the well plan should come from coals and silt zones. From Lease/Block Lines Latitude Longitude UTM North (Y) UTM East (x) Tolerance Pore Pressure Pore Pressure Possible Fluid (psi) (ppg) Lithology Content 6.7 Sandstone Gas / Water 6.7 Sandstone Gas / Water 4.0 - 8.7 Sandstone Gas 8.7 Sandstone Gas Surface Location Coordinates 184'FSL, 194'FEL, Sec. 7,T5N,R11W,S.M. 60031' 55.960" N 151015' 41.853" W 2,388,631.433' 272,776.575' Dépth Horizontal Displacement (ft) MD TVD +N/-S +E/-W Tolerance Target (ft) (ft) Location (Y) (X) (ft) Upper Beluga 7,938 5,112 1,008' FNL, 1,661' FEL, Sec. 8, T5N, R11W, S.M. 4,088 3,813 Circle 250' radius Middle Beluga 8,635 5,772 845' FNL, 1,508' FEL, Sec. 8, T5N, R11W, S.M. 4,251 3,966 Circle 250' radius Upper Tyonek 10,614 7,742 796' FNL, 1,436' FEL, Sec. 8, T5N, R11W, S.M. 4,328 4,038 Circle 250' radius WellTD 10,863 7,791 796' FNL, 1,436' FEL, Sec. 8, T5N, R11W, S.M. 4,328 4,038 Circle 250' radius Comments: The Tyonek target shown above is a directional target only, not a planned productive interval. Page 3 of 13 e e Summary of Potential Drillinç Hazards Hazard Event lost Circulation in low Pressure Sterling and Upper Beluga Sands Abnormal Pressure in Tyonek Coals/Shales DiscUssion Control losses by using sufficiently sized lCM. Monitor gas on connection and drilling, adjust mud weight as necessary. Comments: Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the drillers dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No H2S is anticipated. / Gas sands will be encountered from +1- 6,742' MD (4,112' TVD) to total depth of the well. These sands will run from normal pressured to severely depleted and lost circulation and differential sticking are potential hazards. The Flo-Pro mud system that will be used to drill the well will help reduce these risks and lost circulation materials will be on location. No well interference hazards exist. Formation Evaluation Summary Interval lWD Surface None 0' - 1,800' MD Intermediate None 1,800' -7,747' MD Production None 7,747' - 10,863' MD Completion N/A Electric logs Mud logs None None None Basic with GCA, shale density, temperature in and out, sample collection (10' samples). Basic with GCA, shale density, temperature in and out, sample collection (10' samples). N/A Quad Combo, on drill pipe messenger. Pull GR-Neutron to surface inside casing. GR, CCl Coring Requirements: None Comments: Page 4 of 13 e e Drillin~ Pro~ram Summary CONDUCTOR: 1. 2. 3. 4. 5. Drive 20" conductor to +1-100 ft. RKB. Move in and rig up rotary drilling rig. Install starting head 20" SOW x 21 1/4", 2M flanged. Nipple up 21 1/4", 2M diverter, 16" diverter valve, and 16" diverter line. Function test diverter and diverter valve. / SURFACE: 1. Drill a 16" hole to 1,800' MD (1,515' TVD) per the directional plan. 2. RIH with 13 3/8" casing and hang off in the slips. Make up stab-in sub and centralizer on 4" drill pipe. TIH with inner string and latch into stab-in float collar. Cement 13 3/8" casing. Sting out and circulate drill pipe clean. TOOH with inner string. 3. PU 13 3/8" casing, set casing slips in 20", cut off 13 3/8", ND diverter. 4. Install 13 3/8" slip lock connection X 13 5/8" 5M flanged multibowl wellhead. 5. NU 135/8" 5M BOP'S. Test BOP'S and choke manifold to 250/1.,.f)Ø(j-psi. 6. Set wear bushing. ~ 0" 0 ~G'A- 7. Test surface casing to 1,000 psi. INTERMEDIATE: 1. Drill out float equipment and make 20' of new hole. CBU. 2. Displace the hole with new mud. Test shoe to leak off. Estimated EMW is 12.2 ppg. 3. Drill 12 1/4" directional hole to 7,747' MD (4,940' TVD) as per directional plan. (Note that at the anticipated angle in this hole section - 60.5°, hole cleaning measures will be critical. Rotating at high rpm's off bottom, around 120 rpm should aide in removing cuttings dunes.) 4. Make wiper trips as necessary. 5. Change out variable pipe rams with 9 5/8" casing rams. Run test plug and test casing rams to 3,000 psi. 6. Run and cement 9 5/8" casing. Land hanger in multibowl wellhead. 7. Back out landing joint. Change out 95/8" casing rams with variable pipe rams. Run test plug and test pipe rams to 250/3,000~ psi. 8. Set wear bushing. Test casing to 3,000 psi. PRODUCTION: 1. Drill float equipment and 20' of new formation wi 6" x 7" DOSRWD system. CBU. 2. Displace the hole with new mud. Test shoe to leak off. Estimated EMW 12.5 ppg. 3. Drill a 7" hole to 10,863' MD (7,991' TVD) per the directional program. 4. TOOH. RU logging company. Run open hole logs drill pipe conveyed as per plan. Logging BHA will be configured to wipe hole on the logging pass. RD logging company. 5. TOOH and laydown BHA and drill pipe. Pull wear bushing. 6. Run 3 1/2" Hydril 563 casing liner with hanger and liner hanger packer on drill pipe to TD. On bottom reciprocate liner while circulating the hole. Set liner hanger at approximately 7,550' MD. Cement casing as per the attached cementing program, while rotating liner, displacing cement with gelled KCI. Ensure circulation of cement to above top of liner. Bump plug with 500 psi over displacement pressure. 7. Set liner hanger packer, disconnect from liner, circulate hole clean. TOOH. 8. PU mill for 3 1/2" along with string mill for 95/8" casing. Make clean out trip to top of 3 1/2" liner with mill combo on drill pipe. 9. Polish 3 1/2" liner seal bore. TOOH laying down. 10. Run 3 1/2" tubing with seal unit. Displace hole with 6 % KCL. Space out tubing and land hanger. ND BOP, NU tree and test to 5,000 psi. 11. Rig down and move out drilling rig. COMPLETION: Completion will be done without a rig. Page 5 of 13 e Casinç¡ Proç¡ram MD (ft) Casing Size (in) 13 3/8 95/8 31/2 Weight (Ibs/ft) 68 40 9.2 Grade K-55 L-80 L-80 Top Surface Surface 7,550 Bottom 1,800 7,747 10,863 Comments: e Connection API Ratings ./ Makeup / 0.0. Torque Type (in) (ft-Ibs) BTC 14.375 N/A' BTC 10.625 N/A' Hydril 563 4.250 2,800 () ~...::::-- roC/) - a. o~ Ü c o r;¡ ïñ a. ~ g I- .... - ~ "æ ÆS Hole Size (in) 16.00 12.25 7.00 3,450 5,750 10,160 1,950 3,090 10,540 1,300 979 207 · The make up of the buttress connection will be to the proper marl<. Casinç¡ Desiç¡n Casing Shoe Safety Factors () c Casing Setting Mud Wt Frac. Form Maximum Surface C/) a. 0 .... ~ ïñ Size Weight Depth When Set Grad Press Pressure !!? 0 c :::> () (in) (Ib/ft) Grade (TVD) (Ib/gal) (Ib/gal) (Ib/gal) (psi) I1J ü I- 13 3/8 68 K-55 1,515 9.4 12.2 8.7 635 4.36 2.08 2.36 ,/ 95/8 40 L-80 4,940 9.6 12.5 ¿jþ 2,682 1.61 1.14 2.49 31/2 9.2 L-80 7,991 10.0 13.3 10.8 2,682 1.30 2.47 1.64 Comments: Maximum Anticipated Suñace Pressure Setting Depth Casing Size TVD MAWP' (in) (ft) (psi) 13 3/8 1,515 2,328 95/8 4,940 3,974 3 1/2 7,991 3,974 · MAWP = Maximum allowable working pressure MASP = Maximum anticipated surface pressure Comments: MASP .. Mud/Gas (psi) Ratio 635 30/70 2,682 30/70 2,682 30/70 Page 6 of 13 e e MASP I MAWP CALCULATIONS: Surface casinQ: 13 3/8" (1,800' MD, 1,515' TVD) MASPfrac = ((Fracture gradient at shoe + S.F.) x .052 X TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (12.2 ppg + 0.5 ppg) x .052 x 1,515' - (.1 psi/ft x 1,515') MASPfrac = 1,001 psi - 152 psi MASPfrac = 849 psi. MASPbhp = BHPopen hole td - Hydrostatic pressure of mud portion - Hydrostatic pressure of gas portion MASPbhp = (6.7 ppg x .052 x 4,940') - (0.3 x 9.6 ppg x .052 x 4,940') - (0.7 x 0.1 psi/ft x 4,940') MASPbhp = 1,721 psi - 740 psi - 346 psi MASPbhp = 635 psi MASP = MASPbhp = 635 psi MAWP = (0.7 x Casing Burst) - (Mud Wi. - Backup Fluid Wi.) x .052 x TVD MAWP = (0.7 x 3,450) - (9.4 - 8.3) x .052 x 1,515' MAWP = 2,415 psi - 87 psi = 2,328 psi Intermediate casinq: 95/8" (7.747' MD, 4,940' TVD) MASPfrac = ((Fracture gradient at shoe + S.F.) x .052 X TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (12.5 ppg + 0.5 ppg) x .052 x 4,940' - (.1 psi/ft x 4,940') MASPfrac = 3,339 psi - 494 psi MASPfrac = 2,845 psi. MASPbhp = BHPopen hole td - Hydrostatic pressure of mud portion - Hydrostatic pressure of gas portion MASPbhp = (10.8 ppg x .052 x 7,991') - (0.3 x 10.0 ppg x .052 x 7,991') - (0.7 x 0.1 psi/ft x 7,991') MASPbhp = 4,488 psi - 1,247 psi - 559 psi MASPbhp = 2,682 psi MASP = MASPbhp = 2,682 psi MAWP = (0.7 x Casing Burst) - (Mud Wi. - Backup Fluid Wi.) x .052 x TVD MAWP = (0.7 x 5,750) - (9.6 - 9.4) x .052 x 4,940' MAWP = 4,025 psi - 51 psi = 3,974 psi Production liner: 31/2" (TOP -7,550' MD, 4,766' TVD) (BOT -10,863' MD, 7,991' TVD) MASP = MASPg 5/8" = 2,682 psi MAWP = MAWP95/8" = 3,974 psi Page 7 of 13 BOPE ProQram Casing Casing Size (in) Surface 13 3/8 Intermediate 95/8 Production Liner 31/2 Comments: Blowout Preventers MAWP (psi) 2,328 3,974 3,974 e MASP (psi) 635 2,682 2,682 Casing Test Test Fluid Press Density (psi) (Ib/gal) 1,000 9.4 e BOPS Size & Rating (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram (1) 13 5/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M pipe ram (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram (1) 13 5/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M pipe ram (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram (1) 13 5/8" 5M blind ram (1) 13-518" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M pipe ram Test Pressure Low/High (psi) 250/~ 3 000 Iú~ 250/3,000 250/3,000 The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top, a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets, and a 13-5/8" x 5000 psi single pipe ram. 3,000 9.6 The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and a vacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. Casing Test Pressures 3,000 10.0 Casing test pressures are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back-up unless otherwise noted. Page 8 of 13 e e Wellhead Equipment Summary Component Description 13-5/8" 3M X 13-3/8" Slip Loc WI 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL 1, PR1 13-5/8" 3M Studded Bottom X 13-5/8" 5M Fig Top, WI 2,2-1/16" 5M Studded Outlets, U,AA,PSL 1.PR1 13-5/8" 5M X 3-1116" 5M WI Seal Pocket and 3" H BPV Threads Casing Hanger Type 13 5/8" x 9 5/8" Fluted Mandrel Casing Head Tubing Head 135/8" x 31/2" Mandrel Adapter Flange Comments: Directional Program Summary Build Turn ./' Coordinates Sec. MD TVD Rate Rate Dogleg Inclination Azimuth +N/-S +E/-W VS No. Description (ft) (ft) (°/100') C/100') C/100') (deg) (deg) (ft) (ft) (ft) Tie On 0 0 0 0 0 0 0 0 0 0 2 KOP 250 250 0 0 0 0 43.01 0 0 0 3 Build up Section 4.0 0 0 43.01 4 End of Build 1,762.50 1,496.69 4.0 0 4.0 60.50 43.01 531.63 495.96 727.05 5 Hold Section 0 0 0 60.50 43.01 6 End of Hold 5,500.00 3,337.13 0 0 0 60.50 43.01 2,910.22 2,714.97 3,980.00 7 Drop Section -1.5 0 1.5 43.01 8 End of Drop to the 9,533.33 6,661.64 -1.5 0 1.5 0 43.01 4,327.89 4,037.52 5,918.80 Vertical 9 TD 10,863.69 7,992.00 0 0 0 0 43.01 4,327.89 4,037.52 5,918.80 Comments: Vertical section calculated from a reference azimuth of 43.01 0 taken from surface location to bottom hole location. Potential Well Interference: Well CLU #1 RD CLU #5 CLU #6 Distance (ft) 181.7 62.8 278.8 Depth (MD) 250 280 260 No serious interference exists. See attached directional plan and anticollision analysis for more details. Page 9 of 13 e 'ï=' :~i"ll":,a i ~ ! g :1<....1~ I r:>.. .,s ¡¡¡. Q ;; 'f :;; 5000- ~ (,(11,11' , (1111') 9000 I) " ," L0-1~:> L BCI.l~= . -- :b4- . Ci l' .- \1 Bdll~~1 ( ; I -; ""10" . (' ( ¡I) I I I I' -1000 I" r I' I I I I' I I I I' I I I i I I I I I' I I I I I I' I o 1000 2000 3000 4000 5000 6000 7000 Vertical Section at 43.010 [3000ft/in] Directional Survevin~ Summary Interval o - 1,800' 1,800' - 7,747' 7,747' -10,863' Comments: MWD Survey X X X Magnetic Multishot Drillin~ Fluid Pro~ram Summary Interval- TVD From To (ft) (ft) o 1,515 1,515 4,940 4,940 7,991 Comments: Density (Ib/gal) 8.6 - 9.4 Fluid Description Gel I Gelex Spud Mud , I "J e " ~ o o ~ +' ~ o ~ .,s " o '" 9.0 - 9.6 6% Flo-Pro wI Safecarb West(-)/East(+) [1500ft/in] Gyro Multishot Comments 9.2-....Q,<t'" ,O·e ~ 6% Flo-Pro wI Safecarb Additives Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL Flo-Vis, PolyPac UL, KCI, SafeCarb F&M, Asphasol Supreme, Lubetex, KlaGard, Caustic, Conqor 404, SafeScav NA Flo-Vis, DualFlo, KCI, Greencide 25G, SafeCarb F, KlaGard, Barite, Caustic, Conqor 404, SafeScav NA Minimum Inventory Gel Viscosifier Barite See mud prognosis for details, Sized CaC03 (SafeCarb) will be used to controlleakoff into the low pressure zones, Page 10 of 13 e DrillinQ Fluid Specifications Interval - TVD From To (ft) (ft) o 1,800 1,800 7,747 7,747 10,863 Density (Ib/gal) 8.6 - 9.4 9.0 -.IMrIe. G 9.2 - 9.4 Vis (seclqt) 60 - 100 \<-161\- Comments: Solids Control Equipment e LSRV 1 min (lb./100ff) PV (cP) YP Fluid Loss Drill Solids (lb/100 ff) (cc) pH (%) 25 - 35 NC - 12 +/- 9.5 <7 8·10 +/- 9.5 +/- 5-8 <5 +/- 9.5 +/- 5 40,000 40,000 8 - 14 10 - 14 c 0 () Q¡ Q¡ ts ~ ~ () ro Q¡ c () 0 S .r: ro C> u 'tJ ~ () 2 en en en Q¡ Æ ü C> C> ë5 c "¡:: c c .>=: ro "¡¡¡ 'tJ ë E :¡:¡ 0 ro en "S Q¡ .r: () () ::J () ::J Interval C/J 0 0 ~ ü ü Ü N Comments o - 10,863' MD X X X X Closed Loop System, Full Containment Item Shaker 2 - Derrick Model 2E48-90F-3T A Desander N/A Desilter 1 - Derrick Model 0522 Mud Cleaner N/A Centrifuge 2 - MI/Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G&I Facility Zero Discharge N/A Comments: Equipment Specifications (quantity, design type, brand, model, flow capacity, etc) The solids control equipment will consist of two flowline cleaners, a desilter, and the MI centrifuge van. Included will be equipment to de-water the underflow from the mud processing equipment to allow for disposal of the cuttings and solids by slurrification and injection into the disposal well at the KGF. Page 11 of 13 e e Cement Proç¡ram Summary Depth Gauge Top of Cement Open Casing Hole Ann Vol Slurry WOC Hole Size MD TVD Size MD TVD To TOC Vol Time Excess (in) (ft) (ft) (in) (ft) (ft) (ft3) (ft3) (hrs) (%) 13 3/8 1,800 1,515 16.0 0 0 757 1,235 8 50 95/8 7,747 4,940 12.25 6,200 /;,736 485 761 8 50 31/2 10,863 7,991 7.0 7,550 4,766 664 1,011 N/A 50 Mix Water Compressive Casing Slurry TOC Strength Size Density Qty Yield Vol MD Qty WL FW (psi) (in) Slurry Cement Description (Ib/gal) (sx) (ft3/SX) (ft3) (ft) (gal/sx) Type (cc) (%) 8 hr 24 hr Lead 13 3/8 Tail Type I Cement 12 494 2.50 1,235 0 10.84 Fresh 812 0 500 1,183 Lead Class "G" 12.5 261 /.80 470 6,200 10.60 Fresh 95/8 Tail Class "G" 15.7 249 1.17 291 7,200 5.00 Fresh Lead 3 1/2 Tail Class "G" 15.7 857 1.18 1 ,011 7,550 5.03 Fresh 18 0 500+ 2,431 Comments: See cement prognosis for details and spacer specifications. Hydraulics Summary Rig mud pumps available are shown below. Max Press @ Displacement @ Liner ID Stroke 90% WP 95% eft Max Rate Hole Sections Used Qty Make Model (in) (in) (psi) (gal/stroke) (spm/gpm) On 5 8 2,597 2.04 175/357 Surface National Oil A600PT 3 5 8 2,597 2.04 175/357 Intermediate Well 5 8 2,597 2.04 175/357 Production Tabulated below are the expected flow rates, standpipe pressures and nozzle sizes for each hole section. Hole Standpipe Min Nozzle DepthcMD Size Pump Rate Pressure AV ECD Size (ft) (in) (gpm) (psi) (fpm) (Ib/gal) (32"$ ) Remarks 1 - 12 0-2,300 17.5 550 1,900 48 1 - 14 Actual Data from BC #11 2 - 16's 2,300 - 7,270 545 2,000 107 3 - 22's Actual Data from BC #11 12.25 1 - 15 7,270 - 10,496 8.5 436 2,000 226 3 - 20's Actual Data from BC #11 Page 12 of 13 e e Comments: See separate hydraulics calculations. Formation Intearitv Test Procedure Surface and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Page 13 of 13 121 1/4" 2M Diverter 1-----. 1 Diverter Spool e "> 1 I" . Marathon Oil Well CLU #7 Diverter e Flow line ~ I I /' 116" Automatic Knife Valve Ôl/- / " / , I I ( \'--~ 1 I, \ 116" Diverter Line e I Flow Nipple I - 113 5/8" 5M Annular I Preventer 113 5/8" 5M Double Ram Preventer Ie -----. 121/16"5M Ie Check Valve \21/16" 5M Manually I \ operated/~ []I[]]]0I0JIIII1illJrn I~ 113 5/8" 5M Cross I ~I/ _____ 1 " / 113 5/8" 5M Single Ram Preventer e ~ e Marathon Oil Well CLU #7 BOP Stack . þ ~ / 1 I) > 1 I..... > I..... / ..... \ 1 Flow Line I I ../ / 1 1 < I Pipe Ram I ~/ ~/ 131/8" 5M Manually I Operated Valve I Blind Ram I < 1 /1 Þi ~mOI0IIJ[]JØ]] .....: t < I Pipe Ram I ~ 131/8" 5M Hydraulically I ./~ Operated Valve < III / Bottom of Single gate must be 24-45" from ground level for Glacier 1 rig placement. ~ 1135/8"5Mx135/8"5M I : I l Drilling Spool í~l13 5/8" 5M T"b;og Head Flaoge e Marathon Oil Well CLU #7 Choke Manifold e ITO Gas Buster ITO Blooey Line I I Bleed off Line to Shakers ~ ~ ~ ç::=:;¡ ç::=:;¡ ç::=:;¡ ~J [ ~J [~ 000 C::J C::J C::J C ~ ~ ~ ~ ~ ~ ~ [II@[1]ITI@r ~ [II@[1] '\ I ~ t 13" 5M Valves Î 29/16" 10M Swaco LJ \3 1/8" 5M Manually Hydraulically Operated Adjustable Choke Choke I From BOP Stack e e Surface Use Plan for Cannery Loop Unit, well CLU #7 / Surface location: 184' FSL, 194' FEL, Sec. 7, T5N, R11W, S.M. 1) Existing Roads Existing roads which will be used for access to CLU #7 are shown on the attached map. Kenai, Alaska is the nearest town to the site and is also shown on the map. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access CLU #7. 3) Location of existing wells Well CLU #7 will be drilled on Cannery Loop Unit pad 1. A pad drawing is enclosed that shows existing wells. 4) Location of existing andlor proposed facilities The locations of existing production facilities in the CLU pad 1 are shown on the enclosed pad drawing. These facilities will be upgraded to handle the additional gas production. 5) Location of Water Supply A water supply well exists on the pad that CLU #7 will be drilled from. This is shown on the pad drawing. 6) Construction Materials No construction is planned on the pad. 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The cuttings and excess mud will be hauled to Pad 41-18 of the Kenai Gas Field for disposal into Well KU 24-7, a Class II disposal well (AOGCC Disposal Injection Order No.9, Permit #81-176). b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be hauled to Pad 34-31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7-194). d) Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. e e e) Sewage The existing sewer system on the pad will be utilized. 8) Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. The camp willutilize the existing sewer system. 9) Plans for reclamation of the suñace CLU #7 will be drilled on an existing pad. Reclamation of the pad will occur after the abandonment of CLU #7 and the other existing wells on the pad. Approval of the plan of reclamation will be obtained from the U.S. Fish and Wildlife Service prior to any reclamation work beginning. 10) Suñace ownership The surface owner of the land in the Cannery Loop Unit is Marathon Oil Company. 11) Operator's Representative and Certification I hereby certify that I, or persons under my direct supervision, have inspected the proposed drill site and access route; that I am familiar with the conditions that currently exist; that the statements made in this plan are, to the best of my knowledge, true and correct; and that the work associated with operations proposed herein will be performed by Marathon Oil Company and its contractors and subcontractors in conformity with this plan and the terms and conditions under which it is approved. This statement is subject to the provisions of 18 U.S.C. 1001 for the filing of a false statement. Date: /J/17 /0 '3 Name and Title:%JÚvJ ~~-~ Willard J. Tank, Senior Drilling Engineer Marathon Oil Company P.O. Box 196168 Anchorage, Alaska 99519-6168 (907) 564-6319 I - - ---;r- i I'; l I L5 I , I ~ ¡I, i : II ~ 'Ix ...J I ~ i I TRACT A I KENAI SPIT SUBDIVISION NO.2 --t x 208' FSL \ , "- x j__~E';..TY.!:!~_ ~ 30' GATE x-x /"" 50' { 8 ~ 17 WCMC CORNER 3" MONUMENT N: 2388470.36 E: 271528.88 ELEV. = 22.47' I I x , && && CHAIN LINK FENCE x x x CANNERY ROAD 83' R/W KENAI CITY LIMITS - o o ~ï-- ~ 30' GATE \ X~~X o ~ \: " ~ 8 7 17 8 SECTION CORNER 3" MONUMENT N: 2388444.45 E: 272967.50 ELEV. = 24.66' ?'- 30' && WATER WELL BUILDING PROPOSED WELL STAKED LOCATION GRID N:2388660.968 GRID E:272484.840 ~TlTUDE: 60°31'56.196" \ LONGITUDE: -151°15'47.694" ~ FHE 1) BASIS OF COORDINATES IS U.S.C. & G.S. TRI STATION AUDRY IN ALASKA STATE PLANE NAD 27 ZONE 4. 2) BASIS OF ELEVATION IS MEAN SEA LEVEL = 0.00' FOR ELEVATIONS SHOWN. 3) BEARINGS SHOWN HEREON ARE GRID UNLESS OTHERWISE NOTED. 4) AUDRY LOCATION: N: 2382045.42 E: 269866.75 5) 3" SECTION CORNER MONUMENT IN MON BOX SERVES AS A TBM WITH AN ELEVATION = 24.66'. 6) OBJECTS, LOCATIONS, AND TOPOGRAPHY HEREON REPRESENT AS-BUILT CONDITIONS AS SURVEYED MOST RECENTLY ON 10/1/03. 7) EXISTING RESERVE PIT IS INACTIVE AND RECEIVED ADEC CLOSURE IN 1998. 8) CANNERY ROAD, ROYAL STREET, AND BOW PICKER LANE ARE EXISTING GRAVEL ROADS SUITABLE FOR HEAW CONSTRUCTION EQUIPMENT. 9) MARATHON'S GLACIER DRILL RIG IS CURRENTLY SET UP ON WELL CLU NO.1 AND IS EXPECTED TO REMAIN IN PLACE FOR DURATION OF CONSTRUCTION. CONTRACTOR MUST CONDUCT HIS ACTIVITIES IN SUCH A MANNER AS NOT TO INTERRUPT DRILL RIG ACTIVITY UNLESS PRIOR APPROVAL GRANTED BY MOC. ~ r,. e GENERAL NOTES e ~ e e CANNERY LOOP UNIT NO.1 EXISTING CONDITIONS ,-,,'U"'t :-~~~ f~~~!~'.:i% '1\.-"-,: \,":.~..~.., : f..,~~,.....""--' >- :> '" tic <.: z ~ 0 F= ~ 0. õ" U (I) ~ "' 0 ~ c; "' .J l- S '" Ö 0 Si > -1 "' '" N >- '" 0 '" z '" z 0 « .- <.9 ó z a.. 0 (/') '" 0 w ~ ¿ z 0 - 0 I- ....J Z > U ::::) N 0 U I .....J 0.... '" 0 0 0 z ó 0 0 z " 0 Z ....J (/') 0 '" 0 >- Z 9 æ: « "' ¡;: I w 0.... - I-- Z X « z w « '" 0::::: 0 N 0 U '- « « "- 0.... ~ ¿ ..; ~ 0 ~ .. '" !! '" 0 " '" ~ 9 "' ¡;: r þ,o ~ ~ m~ ~ I~§ \I r \J\ . ~g~ .5 L &-~ ~ \J\ - < ...B -S .5 ~ ~ ¡ V) -tJ § F= V) I . '" ~ co \..) f- :JN] , ... u Q'§AI F= co J ~XN.:J \j Ig §'~ 2' ~~~"' i; 1 '.- :¡¡ DRAWN BY: CRM CHECKED BY; SAM HORZ. SCALE: ," ~ 60' VERT. SCALE: N / A SHEET: 52 L [!] ~ WL WATER LINE BURIED 5' ± WL WL CLU NO. GAS WELL wi WELL HOUSE 6 EXISTING GRAVEL PAD ELEVATION = 21' ± CLU NO. GAS WELL wi WELL HOUSE [ WASTE If/ATER BUILDiNG [!J CLU NO.5 GAS WELL wi WELL HOUSE MONITOR WELL 184' FSL I CONTROL BUILDING LATITUDE: 60°31'55.960" LONGITUDE: ,151°15'41.853" PROPOSED WELL STAKED LOCATION GRID N:2388631.433 194' FEL ø MONITOR WELL ;r-- - "';(- --~ !.I ·DANGER· - BURIED FLOW LINES PROPERTY LINE --~ o I SCALE 50 I FEET - -r-- ~E ( , CLU NO.7 OVERHEAD PIPE SYSTEM o OVERHEAD PIPE SYSTEM L.;,, REBOILER & HEATER BUILDING x I SEPARATOR ¡ x BUILDING " / 1/ ~ x ----~ x [' L: IJ I , I I , I I x ~ b L{') UJ Z « ...J 0::: UJ ~ ü ë: S o CC --r- 100 I --r- CONTROL POI ~T #2 N: 2388677.54 x E: 272911.00 ELEV. = 21.60' 7 6 COR. -0 7 8 -----/- S 1 : Marathon Oil Company Project: Cannery Loop Unit No.7 nit ecti n CANNERY LOOP UNIT I Proved Productive Area I CLU 5&1 2004 Well r.,,- 111.... I I t I L________ I I I I I I I I t ,--...., I,~\ I~ 1\ ,1 t f I .....-..,.. .. r-----i ~-----{ í . L__.J II I 1 I I r--' q I r I II I I I II I I I 11 I III!: I I Pi II I ~ t I 5t " C I I S II I ~ I I ~ II I . I II I ~ . I ~ II a I I I!ií . r.b=(, ~r-;lL-----11 ... I ..I .....1 I I r-----' f I I I ŒNTRIFUGEI I UNIT I I of' X 10" I I I I I I I I I I DlI4P I I -, I I t ~ I I ...., I L-..____J "I KDIJ4Y 3' X 12' L' 1 t 111111 "- f"III. GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT 75.. 7'519 75HP 6X5 6X5 " X :5 ' n· - u" n" :..2 - 2 .. ,J ..... i, 'f ... WIEH .. I .~ . , re \... . .~ ... 1IIUH . .. .. . 1 I~ ... !l . 16'-r' -. ..--.- o . .... to SV 9L . > IHiOO PT 75 If' I 6X:; 11" :" ø.t .. I . ., . . . -. . l.::. I . I 5\1 91.. A-6OO PT - -œ T . :-;;r- ,w· '!« ,W x ~- ¿' , .. ..I.... C .. .... ..... PIT 14'.... e z:r..... ~ ~ e 1':":"1 - ~.) I Created by bmichael For: W Tank ! Dote plotted 8-0ct-2003 Plot Referer1ce ís CLU-7 Version #2. Coordínotes ore in feet reference CLU-7. True Vertical Depths ore reference RK8 (GloÔer#1). ft.Iii. IlAlCSR HUGHES INTEQ 500 - 0 - 500 - 1000 - 1500 - - 13 2000 - ~ 2500 - +- CJ) CJ) '+- '-" 3000 - ..c +- Q. CJ) 3500 - 0 0 4000 - Ü +- .... CJ) > 4500 - CJ) :::¡ .... 5000 - l- I V 5500 - 6000 - 6500 - 7000 - 7500 - 8000 - 8500 500 e e MARATHON Oil Company Structure: Pad # 1 Field: Cannery Loop Unit Well: CLU-7 Location: Cook Inlet, AlaSka[ M MARATHON ---- WELL PROF~LE DATA --~- DlS: 4.00 deg per 100 ft Point ----- MO lco Tie on 0.00 0.00 End of Turn 250.00 0.00 End of Build 1762.50 60.50 End of Hold 5500.00 60.50 i End of Drop 9533.33 0.00 I T.o. & E,d of Hold 10863.69 0.00 4.3.01 1496.69 Dir ND North 0.00 0.00 0.00 43.01 250.00 0.00 RKB Elevation: 42' 0.00 KOP 4.00 12.00 20.00 28.00 36.00 44.00 52.00 60.00 ~ EOC~ 3/8 Casing East V. Sect Deg/100 0.00 0.00 0.00 0.00 0.00 0.00 531.63 495.96 727.05 4.00 43.01 3337.13 2910.22 2714.97 39aO.00 43.01 6661.64 4327.89 4037.52 5918.80 43.01 7992.00 4327.89 4037.52 5918.80 TANGENT ANGLE 60.50 DEG o 500 Begin Drop 60.00 57.00 54.00 51.00 48.00 45.00 42.00 Sterling Ä-ß (Pool 3) 39.00 36.00 33.00 30.00 27.00 Sterling C-1 24.00 CLU#7 U 21.00 18.00 0.00 1.50 0.00 DlS: 1.50 deg per 100 It 9 5/8 Casing o Tyonek: FINAL ANGLE "VERTICAL" Beluga 15.00 CLU#7 M B I 12.00 e ugo 9.00 6.00 3.00 lower Beluga EOD CLU#7 Tyonek CLU#7 TO -------LL TO - Casing pt 1000 5000 5500 1500 2000 2500 .3000 .3500 4000 4500 Vertical Section (feet) -> Azimuth 43.01 with reference 0.00 N, 0.00 E from CLU-7 6000 7000 7500 6000 6500 e e MARATHO Oil Company M MARATHON j Created by bmìchael For: W Tank Dote plotted: 8-0d-2003 Plot Reference is CLU-7 Version #2. Structure: Pad # 1 Well : CLU-7 Field: Cannery Loop Unit Location: Cook Inlet, Alaska Coordínotes ore in feet referer.ce CLU-7 True vertical Depths are reference RKB (Glocìer#1). e.. BAKIR -- INTEQ ==== WELL PR FILE DATA MO Ine Oir NO North East v. Sect Oe9/1OO 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 250.00 0.00 43.01 250.00 0.00 0.00 0.00 0.00 1762.50 60.50 43.01 1496.69 531,63 495.96 72 7,05 4.00 5500.00 60,50 43.01 3337.13 2910.22 2714.97 3980,00 0,00 9533.33 0.00 43.01 6661.64 4327 .89 4037.52 5918,80 1.50 10863.69 0.00 43.01 7992.00 4327.89 4037.52 5918,80 0,00 I:~::~- Point End of Turn i End of Build End of Hold End of Drop 4500 - 4200 - 3900 - 3600 - 3300 - 3000 - 2700 - 4 ^ I 2400 - .--... - iJ) TRUE iJ) 2100 - '+- '-.-/ ..c - "- 1800 - 0 Z 1500 - 1200 - 900 - 600 - 300 - 0 - ~-ª,-J-".£.._of Hold TO - Casing pt Target - Mid Beluga Target - Upper Beluga Sterling C-1 Tyonek Casing Sterling A-8 (Pool 3) Begin Drop Casing 300 300 o 300 600 900 1200 1500 1800 2100 2400 2700 3000 3300 3600 3900 4200 4500 4800 East (feet) -> e e MARATHON Oil Company Pad #1 CLU-7 CLU-7 Cannery Loop Unit Cook Inlet, Alaska PRO P 0 S ALL 1ST I N G by Baker Hughes INTEQ Your ref CLU-7 Version #2 Our ref prop5529 License Date printed 15-Nov-2003 Date created 25-Sep-2003 Last revised 15-Nov-2003 Field is centred on n60 31 54.076,w151 15 37.735 Structure is centred on n60 31 54.076,w151 15 37.735 Slot location is n60 31 55.960,w151 15 41.853 Slot Grid coordinates are N 2388631.433, E 272776.575 Slot local coordinates are 191.32 N 206.04 W Projection type: alaska - Zone 4, Spheroid: Clarke - 1866 Reference North is True North e MARATHON Oil Company Pad #l, CLU-7 Cannery Loop Unit, Cook Inlet, Alaska Measured Inclin. Azimuth True Vert Depth Degrees Degrees Depth 0.00 100.00 200.00 250.00 350.00 450.00 550.00 650.00 750.00 850.00 8.00 12.00 16.00 20.00 24.00 950.00 1050.00 1150.00 1250.00 1350.00 28.00 32.00 36.00 40.00 44.00 1450.00 1550.00 1650.00 1750.00 1762.50 48.00 52.00 56.00 60.00 60.50 1800.00 2000.00 2500.00 3000.00 3500.00 60.50 60.50 60.50 60.50 60.50 4000.00 4500.00 5000.00 5500.00 5533.33 60.50 60.50 60.50 60.50 60.00 5633.33 5733.33 5833.33 5933.33 6033.33 58.50 57.00 55.50 54.00 52.50 6133.33 6233.33 6333.33 6433.33 6533.33 51. 00 49.50 48.00 46.50 45.00 6633.33 6733.33 6741.74 6833.33 6933.33 43.50 42.00 41.87 40.50 39.00 7033.33 7133.33 7233.33 7333.33 7433.33 37.50 36.00 34.50 33.00 31.50 0.00 0.00 0.00 0.00 4.00 0.00 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 0.00 100.00 200.00 250.00 349.92 449.35 547.81 644.82 739.91 832.61 922.47 1009.05 1091.94 1170.73 1245.02 1314.48 1378.74 1437.51 1490.49 1496.69 1515.16 1613.64 1859.86 2106.07 2352.28 2598.49 2844.70 3090.91 3337.13 3353.67 3404.79 3458.15 3513.71 3571.42 3631. 25 3693.16 3757.10 3823.04 3890.91 3960.69 4032.32 4105.75 4112.00 4180.93 4257.81 4336.34 4416.47 4498.13 4581.27 4665.84 R E C TAN G U L A R COO R DIN ATE S 0.00 N 0.00 N 0.00 N 0.00 N 2.55 N 10.19 N 22.89 N 40.57 N 63.16 N 90.55 N 122.60 N 159.15 N 200.03 N 245.04 N 293.96 N 346.55 N 402.55 N 461.69 N 523.69 N 531. 63 N 555.49 N 682.77 N 1000.98 N 1319.19 N 1637.40 N 1955.60 N 2273.81 N 2592.02 N 2910.22 N 2931.38 N 2994.22 N 3056.06 N 3116.86 N 3176.57 N 3235.16 N 3292.58 N 3348.79 N 3403.77 N 3457.46 N 3509.84 N 3560.86 N 3610.49 N 3614.60 N 3658.70 N 3705.46 N 3750.72N 3794.47 N 3836.67 N 3877.30 N 3916.31 N 0.00 E 0.00 E 0.00 E 0.00 E 2.38 E 9.51 E 21. 35 E 37.85 E 58.93 E 84.48 E 114.37 E 148.47 E 186.61 E 228.60 E 274.24 E 323.30 E 375.54 E 430.72 E 488.56 E 495.96 E 518.22 E 636.97 E 933.82 E 1230.68 E 1527.54 E 1824.39 E 2121.25 E 2418.11 E 2714.97 E 2734.71 E 2793.33 E 2851. 02 E 2907.74 E 2963.44 E 3018.10 E 3071.67 E 3124.11 E 3175.40 E 3225.49 E 3274.35 E 3321.95 E 3368.25 E 3372.08 E 3413.23 E 3456.85 E 3499.08 E 3539.89 E 3579.26 E 3617.16 E 3653.56 E Dogleg Deg/100ft e PROPOSAL LISTING Page 1 Your ref CLU-7 Version #2 Last revised : 15-Nov-2003 Vert Sect 0.00 0.00 0.00 0.00 4.00 0.00 0.00 0.00 0.00 KOP 3.49 4.00 4.00 4.00 4.00 4.00 13.94 31. 30 55.49 86.38 123.84 4.00 4.00 4.00 4.00 4.00 167.67 217.66 273.56 335.12 402.02 4.00 4.00 4.00 4.00 4.00 473.94 550.52 631.41 716.20 727.05 EOC 0.00 0.00 0.00 0.00 0.00 759.69 13 3/8" Casing 933.76 1368.94 1804.11 2239.29 0.00 0.00 0.00 0.00 1.50 2674.47 3109.65 3544.83 3980.00 Begin Drop 4008.94 1. 50 1. 50 1. 50 1. 50 1. 50 4094.88 4179.45 4262.60 4344.26 4424.38 1. 50 1.50 1.50 1.50 1.50 4502.91 4579.79 4654.98 4728.41 4800.03 1.50 1.50 1.50 1.50 1.50 4869.81 4937.69 4943.30 Sterling A-8 (Pool 3) 5003.62 5067.56 1. 50 1. 50 1.50 1.50 1.50 5129.47 5189.30 5247.01 5302.57 5355.93 All data is in feet unless otherwise stated. Coordinates from CLU-7 and TVD from RKB (Glacier#l) (42.00 Ft above mean sea level). Bottom hole distance is 5918.80 on azimuth 43.01 degrees from wellhead. Total Dogleg for wellpath is 121.00 degrees. Vertical section is from wellhead on azimuth 43.01 degrees. Calculation uses the minimum curvature method. Presented by Baker Hughes INTEQ e e MARATHON Oil Company PROPOSAL LISTING Page 2 Pad #1,CLU-7 Your ref CLU-7 Version #2 Cannery Loop Unit, Cook Inlet, Alaska Last revised : 15-Nov-2003 Measured Inclin. Azimuth True Vert R E C T A N G U L A R Dogleg Vert Depth Degrees Degrees Depth C 0 0 R D I N A T E S Deg / 100 ft Sect 7533.33 30.00 43.01 4751.78 3953.70 N 3688.43 E 1.50 5407.06 7633.33 28.50 43.01 4839.03 3989.43 N 3721. 76 E 1. 50 5455.92 7733.33 27.00 43.01 4927.52 4023.47 N 3753.52 E 1. 50 5502.48 7747.30 26.79 43.01 4939.98 4028.09 N 3757.83 E 1. 50 5508.80 9 5/8" Casing 7747.32 26.79 43.01 4940.00 4028.10 N 3757.84 E 1.50 5508.81 Sterling C-l 7833.33 25.50 43.01 5017.21 4055.81 N 3783.69 E 1. 50 5546.71 7933.33 24.00 43.01 5108.02 4086.42 N 3812.25 E 1. 50 5588.57 7937.69 23.93 43.01 5112.00 4087.72 N 3813.46 E 1.50 5590.34 Target - Upper Beluga 8033.33 22.50 43.01 5199.90 4115.29 N 3839.18 E 1.50 5628.04 8133.33 21.00 43.01 5292.77 4142.38 N 3864.46 E 1. 50 5665.10 8233.33 19.50 43.01 5386.59 4167.69 N 3888.07 E 1.50 5699.71 8333.33 18.00 43.01 5481.28 4191.19 N 3909.99 E 1. 50 5731.85 8433.33 16.50 43.01 5576.78 4212.88 N 3930.22 E 1. 50 5761.51 8533.33 15.00 43.01 5673.02 4232.72 N 3948.74 E 1. 50 5788.65 8633.33 13 .50 43.01 5769.94 4250.72 N 3965.53 E 1.50 5813.26 8635.45 13.47 43.01 5772.00 4251. 08 N 3965.86 E 1.50 5813.76 Target - Mid Beluga 8733.33 12.00 43.01 5867.48 4266.86 N 3980.58 E 1.50 5835.33 8833.33 10.50 43.01 5965.55 4281.12 N 3993.89 E 1.50 5854.84 8933.33 9.00 43.01 6064.10 4293.51 N 4005.44 E 1.50 5871.78 9033.33 7.50 43.01 6163.07 4304.00 N 4015.23 E 1. 50 5886.13 9133.33 6.00 43.01 6262.37 4312.59 N 4023.25 E 1. 50 5897.88 9233.33 4.50 43.01 6361. 95 4319.28 N 4029.49 E 1. 50 5907.03 9333.33 3.00 43.01 6461.73 4324.07 N 4033.95 E 1. 50 5913.57 9393.66 2.10 43.01 6522.00 4326.03 N 4035.78 E 1.50 5916.25 Lower Beluga 9433.33 1. 50 43.01 6561. 65 4326.94 N 4036.63 E 1.50 5917.49 9533.33 0.00 43.01 6661. 64 4327.89 N 4037.52 E 1.50 5918.80 EOD 10000.00 0.00 43.01 7128.31 4327.89 N 4037.52 E 0.00 5918.80 10500.00 0.00 43.01 7628.31 4327.89 N 4037.52 E 0.00 5918.80 10613.69 0.00 43.01 7742.00 4327.89 N 4037.52 E 0.00 5918.80 Tyonek 10863.69 0.00 43.01 7992.00 4327.89 N 4037.52 E 0.00 5918.80 TD - Casing pt All data is in feet unless otherwise stated. Coordinates from CLU-7 and TVD from RKB (Glacier#l) (42.00 Ft above mean sea level). Bottom hole distance is 5918.80 on azimuth 43.01 degrees from wellhead. Total Dogleg for wellpath is 121.00 degrees. Vertical section is from wellhead on azimuth 43.01 degrees. Calculation uses the minimum curvature method. Presented by Baker Hughes INTEQ e MARATHON Oil Company Pad #1,CLU-7 Cannery Loop Unit, Cook Inlet, Alaska MD TVD ----------------------------------------------------------------------------------------------------------- Comments in wellpath ------------~~~---~- --------------~----- Rectangular Coords. Comment e PROPOSAL LISTING Page 3 Your ref CLU-7 Version #2 Last revised : 15-Nov-2003 250.00 250.00 0.00 N 0.00 E KOP 1762.50 1496.69 531. 63 N 495.96 E EOC 1800.00 1515.16 555.49 N 518.22 E 13 3/8" Casing 5500.00 3337.13 2910.22 N 2714.97 E Begin Orop 6741.74 4112.00 3614.60 N 3372.08 E Sterling A-8 (Pool 3) 7747.30 4939.98 4028.09 N 3757.83 E 9 5/8" Casing 7747.32 4940.00 4028.10 N 3757.84 E Sterling C-1 7937.69 5112.00 4087.72 N 3813.46 E Target - Upper Beluga 8635.45 5772.00 4251.08 N 3965.86 E Target - Mid Beluga 9393.66 6522.00 4326.03 N 4035.78 E Lower Beluga 9533.33 6661.64 4327.89 N 4037.52 E EOO 10613.69 7742.00 4327.89 N 4037.52 E Tyonek 10863.69 7992.00 4327.89 N 4037.52 E TO - Casing pt Casing positions in string 'A' ------------------------------ ------------------------------ Top MO Top TVO Rectangular Coords. Bot MO Bot TVO Rectangular Coords. Casing ----------------------------------------------------------------------------------------------------------- 0.00 0.00 0.00 0.00 0.00 0.00 Target name O.OON O.OON O.OON O.OOE 1800.00 O.OOE 7747.32 O.OOE 10863.70 1515.16 4940.00 7992.00 555.49N 4028.10N 4327.89N 13 3/8" 9 5/8" 3 1/2" 518.22E 3757.84E 4037.52E Geographic Location T.V.D. Targets associated with this wellpath Revised ------------------------------------- ------------------------------------- Rectangular Coordinates -----------------~----------------------------------------------------------------------------------------- CLU#7 U Beluga CLU#7 M Beluga CLU#7 Tyonek CLU#7 TO 276756.880,2392748.770,0.0000 276756.880,2392748.770,0.0000 276756.880,2392748.770,0.0000 276756.880,2392748.770,0.0000 5112.00 5772.00 7742.00 7992.00 4192.99N 4192.99N 4192.99N 4192.99N 3900.88E 3900.88E 3900.88E 3900.88E 25-Sep-2003 25-Sep-2003 25-Sep-2003 25-Sep-2003 e e MARATHON Oil Company Pad #l CLU-7 CLU-7 Cannery Loop Unit Cook Inlet, Alaska PRO P 0 S ALL I S TIN G by Baker Hughes INTEQ Your ref CLU-7 Version #2 Our ref prop5529 LiceHse Date printed 15-Nov-2003 Date created 25-Sep-2003 Last revised 15-Nov-2003 Field is centred on n60 31 54.076,wI51 15 37.735 Structure is centred on n60 31 54.076,wI51 15 37.735 Slot location is n60 31 55.960,wI51 15 41.853 Slot Grid coordinates are N 2388631.433, E 272776.575 Slot local coordinates are 191.32 N 206.04 W Projection type: alaska - Zone 4, Spheroid: Clarke - 1866 Reference North is True North e MARATHON Oil Company Pad #1, CLU-7 Cannery Loop Unit, Cook Inlet, Alaska Measured Inclin Depth Degrees 0.00 100.00 200.00 250.00 350.00 450.00 550.00 650.00 750.00 850.00 8.00 12.00 16.00 20.00 24.00 950.00 1050.00 1150.00 1250.00 1350.00 28.00 32.00 36.00 40.00 44.00 1450.00 1550.00 1650.00 1750.00 1762.50 48.00 52.00 56.00 60.00 60.50 1800.00 2000.00 2500.00 3000.00 3500.00 60.50 60.50 60.50 60.50 60.50 4000.00 4500.00 5000.00 5500.00 5533.33 60.50 60.50 60.50 60.50 60.00 5633.33 5733.33 5833.33 5933.33 6033.33 58.50 57.00 55.50 54.00 52.50 6133.33 6233.33 6333.33 6433.33 6533.33 51.00 49.50 48.00 46.50 45.00 6633.33 6733.33 6741.74 6833.33 6933.33 43.50 42.00 41.87 40.50 39.00 7033.33 7133.33 7233.33 7333.33 7433.33 37.50 36.00 34.50 33.00 31. 50 Azimuth Degrees 0.00 0.00 0.00 0.00 4.00 0.00 43.01 43.01 43.01 43.01 True Vert Depth 0.00 100.00 200.00 250.00 349.92 449.35 547.81 644.82 739.91 832.61 922.47 1009.05 1091.94 1170.73 1245.02 1314.48 1378.74 1437.51 1490.49 1496.69 1515.16 1613.64 1859.86 2106.07 2352.28 2598.49 2844.70 3090.91 3337.13 3353.67 3404.79 3458.15 3513.71 3571.42 3631. 25 3693.16 3757.10 3823.04 3890.91 3960.69 4032.32 4105.75 4112.00 4180.93 4257.81 4336.34 4416.47 4498.13 4581.27 4665.84 R E C TAN G U L A R COO R DIN ATE S O.OON O.OON O.OON O.OON 2.55N 10.19N 22.89N 40.57N 63.16N 90.55N 122.60N 159.15N 200.03N 245.04N 293.96N 346.55N 402.55N 461.69N 523.69N 531.63N 555.49N 682.77N 1000.98N 1319.19N 1637.40N 1955.60N 2273.81N 2592.02N 2910.22N 2931.38N 2994.22N 3056.06N 3116.86N 3176.57N 3235.16N 3292.58N 3348.79N 3403.77N 3457.46N 3509.84N 3560.86N 3610.49N 3614.60N 3658.70N 3705.46N 3750.72N 3794.47N 3836.67N 3877.30N 3916.31N O.OOE O.OOE O.OOE O.OOE 2.38E 9.51E 21.35E 37.85E 58.93E 84.48E 114.37E 148.47E 186.61E 228.60E 274.24E 323.30E 375.54E 430.72E 488.56E 495.96E 518.22E 636.97E 933.82E 1230.68E 1527 . 54E 1824.39E 2121.25E 2418.11E 2714.97E 2734.71E 2793.33E 2851.02E 2907.74E 2963.44E 3018.10E 3071.67E 3124.11E 3175.40E 3225.49E 3274.35E 3321.95E 3368.25E 3372.08E 3413.23E 3456.85E 3499.08E 3539.89E 3579.26E 3617.16E 3653.56E Dogleg Deg!100ft e PROPOSAL LISTING Page 1 Your ref CLU-7 Version #2 Last revised 15-Nov-2003 0.00 0.00 0.00 0.00 4.00 4.00 4.00 4.00 4.00 4.00 13.94 31.30 55.49 86.38 123.84 Vert Sect G RID Easting COORDS Northing 2388631.43 2388631.43 2388631.43 2388631. 43 2388633.94 2388641. 44 2388653.91 2388671.27 2388693.46 2388720.35 2388751.81 2388787.71 2388827.85 2388872.04 2388920.07 2388971.71 2389026.70 2389084.77 2389145.65 2389153.44 2389176.88 2389301.86 2389614.30 2389926.75 2390239.20 2390551.65 2390864.10 2391176.55 2391489.00 2391509.78 2391571.48 2391632.20 2391691.90 2391750.53 2391808.06 2391864.44 2391919.64 2391973.62 2392026.34 2392077.77 2392127.87 2392176.60 2392180.64 2392223.94 2392269.85 2392314.30 2392357.26 2392398.69 2392438.58 2392476.89 All data in feet unless otherwise stated. Calculation uses minimum curvature method. Coordinates from CLU-7 and TVD from RKB (Glacier#l) (42.00 Ft above mean sea level) . Bottom hole distance is 5918.80 on azimuth 43.01 degrees from wellhead. Total Dogleg for wellpath is 121.00 degrees. Vertical section is from w~llhead on azimuth 43.01 degrees. Grid is alaska - Zone 4. Grid coordinates in FEET and computed using the Clarke - 1866 spheroid Presented by Baker Hughes INTEQ 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 43.01 4.00 4.00 4.00 4.00 4.00 167.67 21 7.66 273.56 335.12 402.02 4.00 4.00 4.00 4.00 4.00 473.94 550.52 631.41 716.20 727.05 0.00 0.00 0.00 0.00 0.00 759.69 933.76 1368.94 1804.11 2239.29 0.00 0.00 0.00 0.00 1. 50 2674.47 3109.65 3544.83 3980.00 4008.94 1. 50 1. 50 1.50 1.50 1. 50 4094.88 4179.45 4262.60 4344.26 4424.38 1. 50 1. 50 1. 50 1. 50 1. 50 4502.91 4579.79 4654.98 4728.41 4800.03 1. 50 1. 50 1. 50 1. 50 1.50 4869.81 4937.69 4943.30 5003.62 5067.56 1.50 1.50 1.50 1.50 1.50 5129.47 5189.30 5247.01 5302.57 5355.93 0.00 0.00 0.00 0.00 3.49 272776.57 272776.57 272776.57 272776.57 272779.00 272786.28 272798.36 272815.20 272836.70 272862.77 272893.27 272928.06 272966.98 273009.82 273056.38 273106.44 273159.74 273216.04 273275.05 273282.60 273305.32 273426.47 273729.36 274032.24 274335.13 274638.01 274940.90 275243.78 275546.67 275566.81 275626.62 275685.48 275743.35 275800.19 275855.96 275910.61 275964.12 276016.45 276067.56 276117.41 276165.98 276213.22 276217.13 276259.11 276303.61 276346.70 276388.34 276428.51 276467.18 276504.32 e e MARATHON Oil Company PROPOSAL LISTING Page 2 Pad #1,CLU-7 Your ref CLU-7 Version #2 Cannery Loop Unit, Cook Inlet, Alaska Last revised 15-Nov-2003 Measured Inclin Azimuth True Vert R E C T A N G U L A R Dogleg Vert G RID C OORDS Depth Degrees Degrees Depth C 0 0 R D I N A T E S Deg/100ft Sect Easting Northing 7533.33 30.00 43.01 4751. 78 3953.70N 3688.43E 1. 50 5407.06 276539.90 2392513.60 7633.33 28.50 43.01 4839.03 3989.43N 3721.76E 1. 50 5455.92 276573.91 2392548.68 7733.33 27.00 43.01 4927.52 4023.47N 3753.52E 1. 50 5502.48 276606.31 2392582.11 7747.30 26.79 43.01 4939.98 4028.09N 3757.83E 1. 50 5508.80 276610.71 2392586.65 7747.32 26.79 43.01 4940.00 4028.10N 3757.84E 1.50 5508.81 27 6610.72 2392586.66 7833.33 25.50 43.01 5017.21 4055.81N 3783.69E 1. 50 5546.71 276637.10 2392613.87 7933.33 24.00 43.01 5108.02 4086.42N 3812.25E 1. 50 5588.57 276666.23 2392643.93 7937.69 23.93 43 .01 5112.00 4087.72N 3813.46E 1. 50 5590.34 276667.47 2392645.20 8033.33 22.50 43.01 5199.90 4115.29N 3839.18E 1. 50 5628.04 276693.71 2392672.27 8133.33 21. 00 43.01 5292.77 4142.38N 3864.46E 1. 50 5665.10 276719.50 2392698.87 8233.33 19.50 43.01 5386.59 4167.69N 3888.07E 1. 50 5699.71 276743.59 2392723.72 8333.33 18.00 43.01 5481. 28 4191.19N 3909.99E 1.50 5731.85 276765.96 2392746.80 8433.33 16.50 43.01 5576.78 4212.88N 3930.22E 1. 50 5761.51 276786.60 2392768.09 8533.33 15.00 43.01 5673.02 4232.72N 3948.74E 1. 50 5788.65 276805.49 2392787.58 8633.33 13 .50 43.01 5769.94 4250.72N 3965.53E 1. 50 5813.26 276822.62 2392805.25 8635.45 13.47 43.01 5772.00 4251.08N 3965.86E 1.50 5813.76 27 6822.96 2392805.60 8733.33 12.00 43.01 5867.48 4266.86N 3980.58E 1. 50 5835.33 276837.98 2392821.10 8833.33 10.50 43.01 5965.55 4281.12N 3993.89E 1. 50 5854.84 276851. 56 2392835.10 8933.33 9.00 43.01 6064.10 4293.51N 4005.44E 1. 50 5871. 78 276863.35 2392847.26 9033.33 7.50 43.01 6163.07 4304.00N 4015.23E 1. 50 5886.13 276873.33 2392857.56 9133.33 6.00 43.01 6262.37 4312.59N 4023.25E 1. 50 5897.88 276881.51 2392866.00 9233.33 4.50 43.01 6361.95 4319.28N 4029.49E 1. 50 5907.03 276887.88 2392872.57 9333.33 3.00 43.01 6461. 73 4324.07N 4033.95E 1. 50 5913.57 276892.43 2392877.27 9393.66 2.10 43.01 6522.00 4326.03N 4035.78E 1.50 5916.25 276894.30 2392879.19 9433.33 1. 50 43.01 6561. 65 4326.94N 4036.63E 1.50 5917.49 276895.17 2392880.09 9533.33 0.00 43.01 6661.64 4327.89N 4037.52E 1. 50 5918.80 276896.08 2392881.03 10000.00 0.00 43.01 7128.31 4327.89N 4037.52E 0.00 5918.80 276896.08 2392881.03 10500.00 0.00 43.01 7628.31 4327.89N 4037.52E 0.00 5918.80 276896.08 2392881.03 10613.69 0.00 43.01 7742.00 4327.89N 4037.52E 0.00 5918.80 276896.08 2392881.03 10863.69 0.00 43.01 7992.00 4327.89N 4037.52E 0.00 5918.80 276896.08 2392881.03 All data in feet unless otherwise stated. Calculation uses minimum curvature method. Coordinates from CLU-7 and TVD from RKB (Glacier#l) (42.00 Ft above mean sea level) . Bottom hole distance is 5918.80 on azimuth 43.01 degrees from wellhead. Total Dogleg for wellpath is 121.00 degrees. Vertical section is from wellhead on azimuth 43.01 degrees. Grid is alaska - Zone 4. Grid coordinates in FEET and computed using the Clarke - 1866 spheroid Presented by Baker Hughes INTEQ e MARATHON Oil Company Pad #1, CLU-7 Cannery Loop Unit/Cook Inlet, Alaska MD TVD ----------------------------------------------------------------------------------------------------------- Comments in wellpath ---~---------------- -------------------- Rectangular Coords. Comment e PROPOSAL LISTING Page 3 Your ref CLU-7 Version #2 Last revised : 15-Nov-2003 250.00 250.00 O.OON O.OOE KOP 1762.50 1496.69 531.63N 495.96E EOC 1800.00 1515.16 555.49N 518.22E 13 3/8" Casing 5500.00 3337.13 2910.22N 2714.97E Begin Drop 6741.74 4112.00 3614.60N 3372.08E Sterling A-8 (Pool 3) 7747.30 4939.98 4028.09N 3757.83E 9 5/8" Casing 7747.32 4940.00 4028.10N 3757.84E Sterling C-l 7937.69 5112.00 4087.72N 3813.46E Target - Upper Beluga 8635.45 5772.00 4251.08N 3965.86E Target - Mid Beluga 9393.66 6522.00 4326.03N 4035.78E Lower Beluga 9533.33 6661. 64 4327.89N 4037.52E EOD 10613.69 7742.00 4327.89N 4037.52E Tyonek 10863.69 7992.00 4327.89N 4037.52E TD - Casing pt Casing positions in string 'A' ------------------------------ ------------------------------ Top MD Top TVD Rectangular Coords. Bot MD Bot TVD Rectangular Coords. Casing ----------------------------------------------------------------------------------------------------------- 0.00 0.00 0.00 0.00 0.00 0.00 Target name O.OON O.OON O.OON O.OOE 1800.00 O.OOE 7747.32 O.OOE 10863.70 1515.16 4940.00 7992.00 555.49N 4028.10N 4327.89N 518.22E 3757.84E 4037.52E 13 3/8" 9 5/8" 3 1/2" Geographic Location T.V.D. Targets associated with this wellpath Revised 276756.880,2392748.770,0.0000 276756.880,2392748.770,0.0000 276756.880,2392748.770,0.0000 276756.880,2392748.770,0.0000 5112.00 5772.00 7742.00 7992.00 ------------------------------------- ------------------------------------- Rectangular Coordinates ----------------------------------------------------------------------------------------------------------- CLU#7 U Beluga CLU#7 M Beluga CLU#7 Tyonek CLU#7 TD 4192.99N 4192.99N 4192.99N 4192.99N 25-Sep-2003 25-Sep-2003 25-Sep-2003 25-Sep-2003 3900.88E 3900.88E 3900.88E 3900.88E Well: CLU-7 Oil om Field: Cannery Loop Unit Location: Cook Inlet, Alaska East (feet) - > 500 ~OO 1100 300 200 100 o 100 200 300 400 500 600 700 500 900 1000 :\600 3500 3300 2000,Ø / / / / / 1900 ø' / / / / "¡SOOel / / / / 3200 DO 3000 2900 2800 2600 / / / 1200 1500 ø - 1400 - 1300 1200 100 1000 - 900 800 n 700 Z 0 - 600 ~ --h (]) 500 (]) -+0 '--'" - 400 - 300 200 100 0 - íOO 200 300 HO il onl a Structure: Pad # 1 Well : CLU-7 Field: Cannery Loop Unit Location: Cook Inlet, Alaska RK8 (Glo6€r#1) East (f > 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400 3600 3800 4000 4200 4400 I 4600 I - 4400 - 4200 3800 4800 if' r 4000 I / I 46(0)" / ~~OOø - 5800 / 5600 I I r 3400 5200 1\ - 3000 I z - 2800 0 :::l :r ----- - 2600 -+, (]) 2400 - 2200 - 2000 - 1800 - 1600 - 1~00 1200 1000 "/ ø 3400 / / / 3500 / / / ? / / / / ø 2200 / / / / 4200 3800 3400 Created by tJmiçhoel onl a Structure: Pad # 1 Well: CLU-7 Dote ploUed 8-0d--2003 Ve~sio" #2. Field: Cannery Loop Unit Location: Cook Inlet, Alaska ReferenCB is CODrdinates 'n fee-t rée~ence Dep1hs on? RKB (GIOÓw#1) 290 L 2 D 260 25C) arm INTEQ 300 c, ¿ 'n IU lJ E i\iORTH ~ 7 .,) 10 .340 20 3 30 320 310 50 60 o Q u 0" JU 100 '1 n I 11...) o 230 20 ! rì i ~J 15C) n L /16(J 90 o 180 II g ¡in er - Fe t Aìl hs shown ore Measured on Reference Well e e MARATHON Oil Company Pad #l CLU-7 CLU-7 Cannery Loop Unit Cook Inlet, Alaska 3-D M I N I MUM D I S TAN C E C LEA RAN C E R E P 0 R T by Baker Hughes INTEQ Your ref CLU-7 Version #2 Our ref prop5529 License Date printed 8-0ct-2003 Date created 25-Sep-2003 Last revised 7-0ct-2003 Field is centred on n60 31 54.076,w151 15 37.735 Structure is centred on n60 31 54.076,w151 15 37.735 Slot location is n60 31 55.960,w151 15 41.853 Slot Grid coordinates are N 2388631.433, E 272776.575 Slot local coordinates are 191.32 N 206.04 W Projection type: alaska - Zone 4, Spheroid: Clarke - 1866 Reference North is True North Report is limited to clearances less than 200 feet DECREASING CLEARANCES of less than 1000 feet are indicated by an asterisk, e.g. 487.4* Object wellpath Closest approach with 3-D Last revised Distance 5-May-1995 17102.7 6-May-1995 3325.2 6-May-1995 4370.0 19-Mar-1997 62.8 5-May-1995 181.7 19-5ep-2000 278.8 21-Aug-2003 577.1 22-Sep-2003 181.7 Minimum Distance method M.D. Diverging from M.D. 9560.0 10680.0 10863.7 10863.7 10863.7 10863.7 280.0 10863.7 250.0 10863.7 260.0 7747.3 10863.7 10863.7 250.0 10863.7 GMS <0-10731'>"CLU-2,Pad #2 GMS <0-16500'>"CLU-4,Pad # 3 I GMS <0-11125'>"CLU-3,Pad # 3 I 4 Dipmeter <8600-11420'>"CLU-5,Pad #1 GMS <0-12010'>"CLU-1,Pad #1 PMSS <0 - 8320>"CLU-6,Pad #1 CLU-1Rd Ver 4"CLU-1Rd,Pad #1 GMS<O - 12008'>DepthShifted"CLU-1,Pad #1 e MARATHON Oil Company Pad #1,CLU-7 Cannery Loop Unit, Cook Inlet, Alaska M.D. T.V.D. Reference wellpath Rect Coordinates 0.0 100.0 200.0 250.0 260.0 0.0 100.0 200.0 250.0 260.0 270.0 280.0 290.0 300.0 310.0 270.0 280.0 290.0 300.0 310.0 320.0 330.0 340.0 350.0 360.0 320.0 330.0 339.9 349.9 359.9 370.0 380.0 390.0 400.0 410.0 369.9 379.8 389.8 399.7 409.7 420.0 430.0 440.0 450.0 460.0 419.6 429.5 439.4 449.4 459.2 470.0 480.0 490.0 500.0 510.0 469.1 479.0 488.9 498.7 508.6 520.0 530.0 540.0 550.0 560.0 518.4 528.2 538.0 547.8 557.6 570.0 580.0 590.0 600.0 610.0 567.3 577.1 586.8 596.5 606.2 620.0 630.0 640.0 650.0 660.0 615.9 625.6 635.2 644.8 654.4 670.0 680.0 690.0 700.0 710.0 664.0 673.6 683.1 692.6 702.1 720.0 711.6 O.ON O.ON O.ON O.ON O.ON O.lN 0.2N 0.4N 0.6N 0.9N 1. 3N 1. 6N 2.1N 2.6N 3.1N 3.7N 4.3N 5.0N 5.7N 6.5N 7.4N 8.3N 9.2N 10.2N 11. 2N 12.3N 13.5N 14.7N 15.9N 17.2N 18.6N 19.9N 21.4N 22.9N 24.4N 26.0N 27.7N 29.4N 31. IN 32.9N 34.7N 36.6N 38.6N 40.6N 42.6N 44.7N 46.8N 49.0N 51. 3N 53.5N 55.9N 6.9E 7.7E 8.6E 9.5E 10.5E 11.5E 12.6E 13.7E 14.8E 16.1E 17.3E 18.6E 20.0E 21.4E 22.8E 24.3E 25.8E 27.4E 29.0E 30.7E 32.4E 34.2E 36.0E 37.9E 39.8E 41. 7E 43.7E 45.7E 47.8E 50.0E 52.1E e CLEARANCE LI8TING Page 1 Your ref CLU-7 Version #2 Last revised: 7-0ct-2003 Object wellpath M.D. T.V.D. Dipmeter <8600-11420'>"CLU-5,Pad #1 TCyl Dist O.OE O.OE O.OE O.OE O.OE 28.1 128.4 228.8 278.8 288.8 0.1 100.4 200.8 250.8 260.8 270.8 281.1 291.1 301.1 311.0 321.0 331. 0 341.0 351.0 361. 0 371. 3 381.3 391.2 401.6 411.6 421.6 431.9 441.9 451.8 461.7 472 .1 482.0 491. 9 502.4 512.4 522.2 533.0 542.9 552.8 563.4 573.3 583.2 593.8 603.6 613.5 624.1 633.9 643.7 654.6 664.3 674.1 685.1 694.9 704.6 715.6 725.4 Rect Coordinates Horiz Minim Bearing Dist 11.38 10.98 9.98 9.38 9.28 9.18 9.08 8.88 8.78 8.68 8.58 8.48 8.28 8.18 8.08 7.98 7.88 7.68 7.48 7.28 7.08 6.88 6.58 6.38 6.08 5.78 5.48 5.18 4.88 4.48 4.08 3.68 3.28 2.88 2.38 1. 88 1.38 0.88 0.38 0.3N 0.9N 1.5N 2.1N 2.8N 3.5N 4.1N 4.9N 5.6N 6.3N 7.1N 7.9N 63.9W 63.6W 62.8W 62.3W 62.1W 62. OW 61. 9W 61.8W 61. 6W 61.5W 61. 3W 61. 2W 61.0W 60.8W 60.7W 60.5W 60.3W 60.1W 59.9W 59.7W 260.0 260.3 261.0 261. 5 261. 6 261. 6 261. 6 261.5 261.4 261. 3 261.1 260.9 260.7 260.4 260.1 259.8 259.4 259.0 258.6 258.2 59.4W 59.2W 58.9W 58.6W 58.3W 257.8 257.3 256.9 256.4 255.9 64.9 64.5* 63.6* 63.0* 62.9* 64.9 64.5* 63.6* 63.0* 62.9* O.lE 0.2E 0.4E 0.6E 0.9E 298.8 309.1 319.1 329.1 339.1 57.9W 57.6W 57.3W 56.9W 56.5W 255.4 254.9 254.4 253.9 253.4 62.8* 62.8* 62.8 62.9 63.1 62.8* 62.8* 62.8 62.9 63.1 1. 2E 1. 5E 1. 9E 2.4E 2.9E 349.1 359.1 369.1 379.0 389.0 56. OW 55.5W 55.0W 54.5W 53.9W 252.9 252.4 251.8 251.3 250.8 63.2 63.5 63.8 64.1 64.5 63.3 63.5 63.8 64.2 64.6 3.4E 4.0E 4.7E 5.4E 6.1E 399.3 409.3 419.3 429.7 439.6 53.3W 52.7W 52.1W 51.4W 50.7W 250.3 249.7 249.2 248.7 248.2 65.0 65.5 66.0 66.6 67.2 65.1 65.6 66.1 66.7 67.4 449.6 460.0 469.9 479.9 489.8 500.2 510.1 520.0 530.6 540.5 550.4 561.2 571.1 581.0 591.7 601.6 611.5 622.1 632.0 641.9 652.6 662.4 672.3 683.2 693.0 702.8 713.9 723.7 733.5 744.7 754.5 50.0W 49.3W 48.5W 47.7W 46.9W 247.7 247.2 246.7 246.2 245.7 67.9 68.6 69.3 70.1 70.9 68.0 68.7 69.5 70.3 71. 2 46.0W 45. OW 44.1W 43.1W 42.0W 245.2 244.7 244.2 243.7 243.2 71. 8 72.7 73.7 74.7 75.8 72 .1 73 .1 74 .1 75.1 76.2 41.0W 242.7 76.8 77.9 79.1 80.2 81. 4 77 .3 78.4 79.6 80.8 82.0 82.7 84.0 85.3 86.6 88.0 83.3 84.7 86.0 87.4 88.9 89.4 90.9 92 .4 94.0 95.6 90.4 91. 9 93.5 95.1 96.8 97.2 98.8 100.5 102.2 103.9 98.4 100.1 101. 9 103.6 105.5 105.7 107.3 All data is in feet unless otherwise stated. Casing dimensions are not included. Coordinates from CLU-7 and TVD from RKB (Glacier#l) (42.00 Ft above mean sea level) . Total Dogleg for wellpath is 0.00 degrees. Vertical section is from wellhead on azimuth 43.01 degrees. Calculation uses the minimum curvature method. Presented by Baker Hughes INTEQ e e MARATHON Oil Company CLEARANCE LISTING Page 2 Pad #1,CLU-7 Your ref CLU-7 Version #2 Cannery Loop Unit,Cook Inlet, Alaska Last revised : 7-0ct-2003 Reference wellpath Object wellpath Dipmeter <8600-11420'>"CLU-5,Pad #1 Horiz Minim TCyl M.D. T.V.D. Rect Coordinates M.D. T.V.D. Rect Coordinates Bearing Dist Dist 730.0 721.1 58.3N 54.4E 764.3 735.1 8.6N 39.9W 242.2 107.5 109.2 740.0 730.5 60.7N 56.6E 775.4 746.1 9.5N 38.7W 241.7 109.3 111.1 750.0 739.9 63.2N 58.9E 785.2 755.8 10.3N 37.5W 241. 3 111.1 113.1 760.0 749.3 65.7N 61. 3E 794.9 765.4 11.1N 36.3W 240.8 113.0 115.1 770.0 758.7 68.3N 63.7E 806.0 776.4 12.0N 35.0W 240.3 115.0 117.1 780.0 768.0 70.9N 66.1E 815.8 786.1 12.8N 33.7W 239.8 116.9 119.2 790.0 777.3 73.6N 68.6E 825.5 795.7 13.6N 32.4W 239.3 118.9 121.3 800.0 786.6 76.3N ?l.lE 836.7 806.7 14.6N 30.9W 238.8 121.0 123.5 810.0 795.8 79.0N 73.7E 846.4 816.3 15.4N 29.6W 238.4 123.0 125.7 820.0 805.1 81. 8N 76.3E 856.1 825.9 16.3N 28.2W 237.9 125.1 128.0 830.0 814.3 84.7N 79.0E 867.1 836.7 17.2N 26.6W 237.4 127.3 130.3 840.0 823.5 87.6N 81.7E 876.8 846.2 18.1N 25.1W 237.0 129.5 132.7 850.0 832.6 90.6N 84.5E 886.5 855.8 19.0N 23.7W 236.5 131.7 135.2 860.0 841.7 93.5N 87.3E 897.3 866.4 20.0N 22.0W 236.1 134.0 137.7 870.0 850.8 96.6N 90.1E 906.9 875.9 20.9N 20.5W 235.6 136.4 140.2 880.0 859.9 99.7N 93.0E 916.6 885.4 21.9N 19. Ow 235.2 138.7 142.8 890.0 868.9 102.8N 95.9E 927.4 896.0 22.9N 17.3W 234.8 141.2 145.5 900.0 877.9 106.0N 98.9E 937.0 905.4 23.9N 15.7W 234.4 143.7 148.2 910.0 886.9 109.2N 101.9E 946.7 914.9 24.9N 14.2W 234.0 146.2 150.9 920.0 895.8 112.5N 105.0E 958.0 926.0 26.0N 12.3W 233.6 148.8 153.7 930.0 904.7 115.8N 108.1E 967.6 935.4 27 .1N 10.6W 233.2 151.4 156.4 940.0 913.6 119.2N 111. 2E 977 .2 944.8 28.1N 9.0W 232.8 154.0 159.2 950.0 922.5 122.6N 114.4E 989.2 956.5 29.5N 6.9W 232.5 156.6 162.1 960.0 931.3 126.1N 11 7. 6E 998.8 965.9 30.6N 5.2W 232.1 159.3 164.9 970.0 940.1 129.6N 120.9E 1008.4 975.3 31.7N 3.4W 231.8 162.0 167.8 980.0 948.8 133. IN 124.2E 1020.5 987.0 33.2N 1.1W 231.4 164.7 170.7 990.0 957.5 136.7N 127.5E 1030.1 996.4 34.4N 0.7E 231.1 167.5 173.7 1000.0 966.2 140.3N 130.9E 1039.6 1005.7 35.7N 2.6E 230.8 170.2 176.8 1010.0 974.8 144. ON 134.3E 1051. 4 1017 .1 37.3N 4.9E 230.5 173.0 179.8 1020.0 983.4 147.7N 137.8E 1061.0 1026.4 38.6N 6.8E 230.2 175.8 182.9 1030.0 992.0 151. 5N 141. 3E 1070.5 1035.6 39.9N 8.8E 229.9 178.7 186.1 1040.0 1000.6 155.3N 144.9E 1082.0 1046.7 41.5N 11.1E 229.6 181. 6 189.3 1050.0 1009.1 159.2N 148.5E 1091.5 1056.0 42.9N 13 .1E 229.3 184.5 192.6 1060.0 1017.5 163.0N 152.1E 1101.0 1065.2 44.3N 15.1E 229.1 187.5 195.9 1070.0 1025.9 167.0N 155.8E 1112.5 1076.3 46.0N 17.5E 228.8 190.5 199.2 1080.0 1034.3 171. ON 159.5E 1122.0 1085.4 47.4N 19.6E 228.6 193.5 202.6 1090.0 1042.7 175. ON 163.3E 1131. 5 1094.6 48.9N 21.6E 228.3 196.6 206.0 1100.0 1051.0 17 9. IN 167.0E 1143.3 1106.0 50.8N 24.2E 228.1 199.7 209.4 All data is in feet unless otherwise stated. Casing dimensions are not included. Coordinates from CLU-7 and TVD from RKB (G1acier#1) (42.00 Ft above mean sea level). Total Dogleg for wellpath is 0.00 degrees. Vertical section is from wellhead on azimuth 43.01 degrees. Calculation uses the minimum curvature method. Presented by Baker Hughes INTEQ e e MARATHON Oil Company CLEARANCE LISTING Page 3 Pad #1,CLU-7 Your ref CLU-7 Version #2 Cannery Loop Unit/Cook Inlet, Alaska Last revised : 7-0ct-2003 Reference wellpath Obj ect wellpath GMS <0-12010'>"CLU-1,Pad #1 Horiz Minim TCyl M.D. T.V.D. Rect Coordinates M.D. T.V.D. Rect Coordinates Bearing Dist Dist 0.0 0.0 O.ON O.OE 2.0 0.0 4.1N 181.7W 271.3 181.7 181.7 100.0 100.0 O.ON O.OE 102.0 100.0 4.1N 181.7W 271.3 181.7 181.7 200.0 200.0 O.ON O.OE 202.0 200.0 4.1N 181.7W 271.3 181.7 181.7 250.0 250.0 O.ON O.OE 252.0 250.0 4.1N 181.7W 271. 3 181.7 181.7 260.0 260.0 O.ON O.OE 262.0 260.0 4.1N 181. 7W 271. 3 181.8 181. 8 270.0 270.0 O.lN O.lE 272.0 270.0 4.1N 181.7W 271.3 181. 8 181.8 280.0 280.0 0.2N 0.2E 282.0 280.0 4.1N 181.7W 271. 2 181.9 182.0 290.0 290.0 0.4N 0.4E 292.0 290.0 4.1N 181.7W 271.2 182.1 182.1 300.0 300.0 0.6N 0.6E 302.0 300.0 4.1N 181.7W 271.1 182.3 182.4 310.0 310.0 0.9N 0.9E 312.0 310.0 4.1N 181.7W 271.0 182.6 182.7 320.0 320.0 1. 3N 1.2E 322.0 320.0 4.1N 181.7W 270.9 182.9 183.0 330.0 330.0 1. 6N 1.5E 332.0 330.0 4.1N 181.7W 270.8 183.2 183.4 340.0 339.9 2.1N 1. 9E 341.9 339.9 4.1N 181.7W 270.6 183.6 183.8 350.0 349.9 2.6N 2.4E 351.9 349.9 4.1N 181.7W 270.5 184.1 184.3 360.0 359.9 3.1N 2.9E 361.9 359.9 4.1N 181.7W 270.3 184.6 184.8 370.0 369.9 3.7N 3.4E 371.9 369.9 4.1N 181.7W 270.1 185.1 185.4 380.0 379.8 4.3N 4.0E 381.8 379.8 4.1N 181.7W 269.9 185.7 186.1 390.0 389.8 5.0N 4.7E 391.8 389.8 4.1N 181.7W 269.7 186.4 186.8 400.0 399.7 5.7N 5.4E 401.7 399.7 4.1N 181.7W 269.5 187.1 187.5 410.0 409.7 6.5N 6.1E 411.7 409.7 4.1N 181.7W 269.3 187.8 188.4 420.0 419.6 7.4N 6.9E 421.6 419.6 4.1N 181. 7W 269.0 188.6 189.2 430.0 429.5 8.3N 7.7E 431.5 429.5 4.1N 181. 7W 268.7 189.4 190.2 440.0 439.4 9.2N 8.6E 441. 4 439.4 4.1N 181.7W 268.5 190.3 191.2 450.0 449.4 10.2N 9.5E 451.4 449.4 4.1N 181.7W 268.2 191.3 192 .2 460.0 459.2 11.2N 10.5E 461. 2 459.2 4.1N 181.7W 267.9 192 .3 193.4 470.0 469.1 12.3N 11.5E 471.1 469.1 4.1N 181.7W 267.6 193.4 194.5 480.0 479.0 13.5N 12.6E 481.0 479.0 4.1N 181.7W 267.2 194.5 195.8 490.0 488.9 14.7N 13.7E 490.9 488.9 4.1N 181. 7W 266.9 195.7 197.1 500.0 498.7 15.9N 14.8E 500.7 498.7 4.1N 181. 7W 266.6 196.9 198.5 510.0 508.6 17.2N 16.1E 510.5 508.5 4.1N 181.7W 266.2 198.2 200.0 520.0 518.4 18.6N 17.3E 520.3 518.3 4.1N 181.7W 265.8 199.5 201. 5 All data is in feet unless otherwise stated. Casing dimensions are not included. Coordinates from CLU-7 and TVD from RKB (Glacier#l) (42.00 Ft above mean sea level). Total Dogleg for wellpath is 0.00 degrees. Vertical section is from wellhead on azimuth 43.01 degrees. Calculation uses the minimum curvature method. Presented by Baker Hughes INTEQ e e MARATHON Oil Company CLEARANCE LISTING Page 4 Pad #1,CLU-7 Your ref CLU-7 Version #2 Cannery Loop Unit, Cook Inlet, Alaska Last revised : 7-0ct-2003 Reference wellpath Object we11path GMS<O - 12008'>DepthShifted"CLU-1,Pad #1 Horiz Minim TCy1 M.D. T.V.D. Rect Coordinates M.D. T.V.D. Rect Coordinates Bearing Dist Dist 0.0 0.0 O.ON O.OE 0.0 0.0 4.1N 181.7W 271.3 181.7 181.7 100.0 100.0 O.ON O.OE 100.0 100.0 4.1N 181.7W 271. 3 181.7 181.7 200.0 200.0 O.ON O.OE 200.0 200.0 4.1N 181.7W 271. 3 181.7 181.7 250.0 250.0 O.ON O.OE 250.0 250.0 4.1N 181.7W 271. 3 181.7 181.7 260.0 260.0 O.ON O.OE 260.0 260.0 4.1N 181.7W 271.3 181. 8 181. 8 270.0 270.0 O.lN O.lE 270.0 270.0 4.1N 181.7W 271. 3 181. 8 181.8 280.0 280.0 0.2N 0.2E 280.0 280.0 4.1N 181.7W 271.2 181. 9 182.0 290.0 290.0 0.4N 0.4E 290.0 290.0 4.1N 181.7W 271. 2 182.1 182.1 300.0 300.0 0.6N 0.6E 300.0 300.0 4.1N 181.7W 271.1 182.3 182.4 310.0 310.0 0.9N 0.9E 310.0 310.0 4.1N 181.7W 271.0 182.6 182.7 320.0 320.0 1. 3N 1.2E 320.0 320.0 4.1N 181.7W 270.9 182.9 183.0 330.0 330.0 1. 6N 1.5E 330.0 330.0 4.1N 181.7W 270.8 183.2 183.4 340.0 339.9 2.1N 1. 9E 339.9 339.9 4.1N 181.7W 270.6 183.6 183.8 350.0 349.9 2.6N 2.4E 349.9 349.9 4.1N 181.7W 270.5 184.1 184.3 360.0 359.9 3.1N 2.9E 359.9 359.9 4.1N 181.7W 270.3 184.6 184.8 370.0 369.9 3.7N 3.4E 369.9 369.9 4.1N 181.7W 270.1 185.1 185.4 380.0 379.8 4.3N 4.0E 379.8 379.8 4.1N 181.7W 269.9 185.7 186.1 390.0 389.8 5.0N 4.7E 389.8 389.8 4.1N 181.7W 269.7 186.4 186.8 400.0 399.7 5.7N 5.4E 399.7 399.7 4.1N 181.7W 269.5 187.1 187.5 410.0 409.7 6.5N 6.1E 409.7 409.7 4.1N 181.7W 269.3 187.8 188.4 420.0 419.6 7.4N 6.9E 419.6 419.6 4.1N 181.7W 269.0 188.6 189.2 430.0 429.5 8.3N 7.7E 429.5 429.5 4.1N 181.7W 268.7 189.4 190.2 440.0 439.4 9.2N 8.6E 439.4 439.4 4.1N 181.7W 268.5 190.3 191.2 450.0 449.4 10.2N 9.5E 449.4 449.4 4.1N 181.7W 268.2 191.3 192 .2 460.0 459.2 11. 2N 10.5E 459.2 459.2 4.1N 181.7W 267.9 192.3 193.4 470.0 469.1 12.3N 11.5E 469.1 469.1 4.1N 181. 7W 267.6 193.4 194.5 480.0 479.0 13.5N 12.6E 479.0 479.0 4.1N 181.7W 267.2 194.5 195.8 490.0 488.9 14.7N 13.7E 488.9 488.9 4.1N 181.7W 266.9 195.7 197.1 500.0 498.7 15.9N 14 .8E 498.7 498.7 4.1N 181. 7W 266.6 196.9 198.5 510.0 508.6 17.2N 16.1E 508.5 508.5 4.1N 181.7W 266.2 198.2 200.0 520.0 518.4 18.6N 17.3E 518.3 518.3 4.1N 181.7W 265.8 199.5 201.5 All data is in feet unless otherwise stated. Casing dimensions are not included. Coordinates from CLU-7 and TVD from RKB (G1acier#1) (42.00 Ft above mean sea level) . Total Dogleg for we11path is 0.00 degrees. Vertical section is from wellhead on azimuth 43.01 degrees. Calculation uses the minimum curvature method. Presented by Baker Hughes INTEQ Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. I I I Prepared For: MARATHON OIL COMPANY Well Cannery Loop Unit #7 Kenai Peninsula, Alaska Prepared by: Tony Tykalsky Reviewed by: Lee Dewees Presented to: Will Tank October 4th, 2003 IFE e e ~IÆ Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank: Will: Enclosed is the recommended drilling fluid program for the Cannery Loop #7 Well to be drilled this year. The following is a brief synopsis of the program. Overview: CLU #7 is a development well targeting the Beluga and Tyonek formations at the Cannery Loop Field. Flo-Pro fluid will be used for the intermediate and production intervals. After logging the production interval, the well will be completed with 3 1/2" liner cemented in place. Surface Interval: The surface interval will be drilled with the standard GellGelex spud mud. Based on offset well data, no problems are anticipated during this interval. Intermediate Interval: This interval will be drilled with a Flo-Pro fluid. After drilling out the surface cement, the well will be displaced to a standard Flo- Pro KCl fluid. SafeCarb bridging material will be maintained according to the mud program to minimize losses to the formation. Fluid loss should be maintained @ 7 -9 cc's API. NOTE: Differential sticking may have occurred in CLU #6 with a 9.85 PPG mud weight. Production Interval: This interval will be drilled with the modified Flo-Pro fluid. After drilling out the intermediate cement and 20- 25 feet of new hole, the well will be displaced to a modified Flo-Pro KCl fluid. Fluid loss should be maintained @ < 6 cc' s API for this interval. Completion: This program assumes the well will be completed with 6% KCl brine. Tony Tykalsky Project Engineer M - I Drilling Fluids Reference Wells: CLU #6, CLU #l RD NOTE: This pr02ram is provided as a 2uide onlv. Well conditions will alwavs dictate fluid properties required. ~ ~IFE œœ ~ ~IFE ----.. - ~ e e Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. EXECUTIVE SUMMARY Our overall goal is no M-I/Swaco HSE incidents while providing fluids and solids control services to our customer. Our goal for CLU #7 is to remove drill solids from the mud system at a cost of less than $0.23 per pound. This has been the average for the last three years of centrifuge van operations With the revised fluid formulation (increasing the fluid agent concentration and maintaining a lower fluid loss), we expect to minimize formation damage and hole enlargement in the production interval as demonstrated on KBU 43-7X. Use of the MI Swaco centrifuge van for the last three years has provided an estimated savings in dilution and disposal costs to Marathon Oil of over $500,000. With continued usage of our equipment, we expect to provide more savings to you during future operations. r:zJIJlFE ~ e e - äØlFE Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervals Depth Interval (ft) Benchmark 1 Benchmark·2 Benchmark 3 Benchmark 4 Fluid cost per foot Volume Usage Solids Removal 0- l800' > $5.96 ft < l745 bbls l800 -7747' > $42.l0 ft < 4135 bbls 7747 - 10863' > 25.05 ft < l364 bbls Total Project Targets for Drilling Interval Avg. < $31.22 Max. < 7244 bbls < $0.23 lb No Spills from Centrifuge Van Operation r:'J4~IFE ~ Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. 3-1/2" 6-1/8" 10863' 7992' FIo-Pro 9.0 7 $82,443 w/SafeCarb Screens 230 210 mesh Desilter Centrifuge Van 3 1/2" 6-1/8" Completion l0863' 7992' 6% KCl 8.55 2 $8,516 13 3/8" l6" l800' 1515' Gel/Gelex Spud 8.6 - 9.4 5 $13,850 Mud Screens l50/l80 mesh Desilter Centrifuge Van 9 5/8" 12-1/4" 7747' 4940' Flo-Pro 9.0 9.6 lO $256,599 w/SafeCarb Screens 180 210 mesh Desilter Centrifuge Van y Utilize all solids control equipment to minimize the build up of drill solids in the system (if possible, centrifuge the surface mud during trips to reduce drill solids). y Condition the mud prior to running casing for all intervals. y Cost does not include any considerations for whole mud losses. y Cost includes l-l/2% Lubetex concentration for intermediate and production interval. IFE e e Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. Product Usage Summary PRODUCT Surface : Intermediate Production Completion! ---- ---0/0 of -- --1 16" I 12-114" 8-112" 3-112" Total Usage Total Cost. ----..--------.. -- ." ---.--.". --.- M - I Bar 0 207 205 0 412 1.5 M-I Gel 392 0 0 0 392 1.5 Gelex 22 0 0 0 22 0.1 Soda Ash 12 2l 7 0 40 0.2 Caustic Soda l7 4l l4 0 72 0.6 Conqor 404 0 9 5 0 l4 4.8 SafeScav NA 4 9 3 0 l6 1.8 Bicarb l7 2l l4 0 52 .3 Conqor 303 0 0 0 6 6 .9 FloVis 0 372 l09 3 484 28.4 Desco CF 10 0 0 0 10 .5 DualFlo 0 0 136 0 136 3.3 Polypac UL l8 l65 0 0 l83 8.5 Greencide 25G 0 0 2 0 2 1 Bioban BP Plus 0 33l 109 0 440 2.9 KCl 0 1737 573 273 2583 9.7 Safecarb 0 l654 546 0 2200 l1.5 SafeKleen 0 1 1 1 3 .4 Lubetex 0 47 l6 0 63 13.7 Defoam X 0 46 l5 0 6l 1.6 Klagard 0 36 0 0 36 7.5 Engineer Service 5 10 7 2 24 r:zJ-.IFE ~ e e ~ ~IFE -: Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. Offset Well Information Well Hole Size Depth PPG PV YP FL Comments CLU #6 8.5 1847 9.1 12 18 10 Spud in, drill ahead 2983 9.5 15 25 10.4 Drilg to T.D., trip & run casing (top job required) 6.125 3747 8.75 8 16 8 Drill ahead 5227 8.95 9 26 7.2 Drlg to 5069, short trip 6083 9 11 24 7 Drlg ahead 7044 9.2 11 30 6.4 Drlg ahed, gels climbing 8320 9.4 12 27 7.6 Drlg to T.D., backream as needed 8320 9.6 12 39 7.2 Logging, hit bridge @ 7800' 8320 9.7 12 44 9.6 Drill Pipe logs, hit bridge @ 7800' 8320 9.85 14 37 8.8 RIH, clean out run, POH, run casing, stuck @ 8124', add 2% Lubetex 8320 9.05 6 18 6.2 Reduce mud weight, work casing free, run to T.D., cement casing CLU #1 RD 8.5 6049 9.1 10 24 4.8 Mill window & drill ahead 8491 9.5 12 44 6.4 Short trip - backream (Beluga relaxing?) - add 3% Lubetex to aid sliding 9051 9.6 13 41 6.8 Increasing clays & volcanics require more dilution and Klagard 9322 9.55 11 33 6.6 Short trip much better 9434 9.65 12 37 6.5 Trip for bit, RIH, tight @ 5950 - 6200' 9739 9.65 12 38 6.8 Short trip, drlg to 9739', wiper trip, CBU, POH for logs, tight @ 6074' ~ ~IFE ~ e e ~ =IFE Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. Plans & Procedures => COMMUNICATION - The Field Mud Engineer will communicate daily with the In-Town Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole difficulties, possible changes to the mud program, and proposals to use products not included in the mud program. => Whole Mud Losses to the Sterlng AS Sands - Refer to fluid formulas and the Optibridge charts for maintaining proper bridging material concentration in the mud system while drilling the intermediate and production intervals. => FLUID LOSS CONTROL - In the intermediate interval the API fluid loss will be maintained in the 7 - 9 cc's range. In the production interval the API fluid will be maintained at less than 6 cc's at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum. It is particularly important to maintain a low hardness «200 ppm Ca) for effective use of DualFlo, therefore cement contamination should be completely treated as rapidly as possible prior to adding DualFlo to control or reduce fluid loss. NOTE: If additions of DualFlo do not appear to be lowering the fluid loss adequately, then switch to additions of Polypac Supreme SL after consultation with town. => LSRV - When drilling with a FloPro fluid, the low shear rate rheology should be maintained around 40,000 cps. In addition to adequate additions of Flo Vis Plus, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. => DRILL SOLIDS - MBT - The MBT should be kept at less than 5 ppb in the production interval through aggressive use of solids equipment and dilution as needed. => MIXING CONDITIONS - Whenever possible all treatments to the mud system should be made as pre-mix additions. Polymers and KCl should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. => CORROSION - Conqor 404 additions should be made daily when drilling with FloPro fluid in order to maintain a Conqor 404 concentration of +/- 2000 PPM. => CORRISION - SafeScav NA additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm => GREENCIDE 25G ADDITIONS - Greencide 25G additions should be made daily when drilling in the production interval, in the range of 5 gallons per day. => SOLIDS VAN USAGE - The Solids Van should be used whenever drill solids become un-acceptably high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should not be the determining condition for when to use the Solids Van. => WEIGHTING UP - All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. F!7 4 ~IFE ~ e e Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. Interval Summary -16" hole o - 1800' Drilling Fluid System Gel/Gelex Spud Mud Key Products MI Gel / Gelex / Soda Ash / Caustic Soda / MI Bar / PolyPac Supreme UL Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens - l50 - l80 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions Interval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) (sec./qt) (lb./l00ft2) (mI/30min) (%) 0- l800' 8.6 - 9.4 60 - 100 25 - 35 NC - l2 +/- 9.5 <7% ~ Treat drill water with Soda Ash to reduce hardness. ~ Build spud mud with 20 - 25 PPB M-I Gel to +/- lOO sec.qt funnel viscosity. ~ Lower funnel viscosity to +/- 75 after gravel zone has been drilled. ~ Add Gelex as needed to maintain sufficient viscosity for hole cleaning. ~ Increase funnel viscosity if fill on connections begins to occur. ~ Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. ~ Add 2 - 5 PPB ofM-I Seal Fine to mud system if seepage losses becomes a problem.. ~ Condition mud prior to cementing casing to reduce yield point and gel strengths. ~ Estimated volume usage for interval- l745 barrels. ~ Estimated haul off volume - 3576 barrels. ~IFE ~ e e ~ ~~IFE ~ Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. Interval Summary - 12-1/4" hole 1800 - 7747' Drilling Fluid System Flo-Pro Fluid Key Products Flo- Vis / PolyPac UL / KCl / SafeCarb F & M, Asphasol Supreme / Lubetex / KlaGard / Caustic Soda / Conqor 404 / SafeScav NA Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens - 2l 0 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions Interval Drilling Fluid Properties Depth Mud Plastic LSRV Interval Weight Viscosity 1 min (ft) (ppg) (cp.) (cps) l800 - 3500' 9.0- 9.4 8 -12 40,000 3500 - 7747' 9.4 -:.9-:6'" 10 - l4 40,000 IO.~ ¡¡.J 6Pr ~ Use one rig pit to drill out surface casing. In other rig pits, build new Flo-Pro fluid using the enclosed formula. ~ After drilling out surface casing, displace hole to Flo-Pro fluid prior to running leak off test. ~ Maintain DO reading of less than 3 ppm with additions of SaveScav NA. ~ Maintain Conqor 404 concentration of 2000+ ppm. ~ If running coals become a problem, increase Asphasol Supreme additions. ~ Estimated volume usage for interval- 4135 barrels. ~ Estimated haul off volume - 6836 barrels. ~ Condition mud prior to running 9-5/8" casing. API Drill Fluid Loss pH Solids (ml/30min) (%) 8 - lO +/- 9.5 +/- 5% 7-9 +/- 9.5 +/- 8% NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. '¡:(·.I~ e e Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. Intermediate Interval Fluid Formula 12-1/4" Interval from 1800 - 7747' Description Mud Weight Weight Material Code Weight Material SG Input Cannery Loop Unit #7 9.1 - 9.2 Prehydrated Gel MI Bar Prehydrated Gel Cone. 4.2 KCI Wt% 6 Order of Addition 1 2 3 4 5 6 7 8 9 10 11 12 Output - 1 bbl I Concêhtration VolÜme Field,lb Lab, gm Field, bbl Water 298.70 298.70 0.853 Soda Ash 0.25 0.25 0.000 Flovis 2.00 2.00 0.004 Polypac Supreme UL 2.00 2.00 0.004 Caustic Soda 0.50 0.50 0.001 Potassium Chloride 19.07 19.07 0.023 KlaGard 6.00 6.00 0.018 SafeCarb F 10.00 10.00 0.010 SafeCarb M 10.00 10.00 0.010 Asphasol Supreme 2.00 2.00 0.006 If bit balling becomes a problem, add the following: D-D CWT I 1.00 I 1.00 I 0.003 I 1.00 Reduce BHA Balling If torque becomes a problem, or sliding is difficult, add up to 5% of the following: Lubetex 14.00 14.00 0.041 14.43 No Products Lab, ml 298.70 0.10 1.33 1.25 0.23 7.98 6.25 3.60 3.60 2.08 Total Calculated Mud Weight Total Chloride 399 1.000 350 Estimated Volume Usage 399 9.500 29600 ~ ~IFE ~ Prod Úèt Usage Reduce Hardness Viscosity Fluid Loss Control pH Control Inhibition Inhibition Bridging Agent Bridging Agent Well bore Stability Lubricity 4135 Barrels Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. 1.0- 0.9 "- 0.8 c: o ~ ..c :s (f¡ i5 0.6 Q) N ~ () ü t:: '" c.. Q) 0.4--~~~- ~ '" "'S E :; U 0.2--~- 0.1 1~1 0-2 © 1999·2001 M-I L.L.C . All Rights Reserved '1):101 ' , ix'102 Particle Size (microns) IFE OilCe. Cannery Loop #7 Cannery Loop Field Sterlíng Max Permeability: Sand Control Device: 350 mDarcy D10 Target I Blend: 0.7 D50 Target I Blend: 18.7 DSO Target I Blend: 60.6 1.4 microns 15.5 microns 127.3 microns Brand Name B=Safe-Carb 10 (F) D=Safe·Carb 40 (M) E=Safe·Carb 250 (C) Bridc¡inc¡ Ac¡ent(lb/bbl)/ol % 10.7 53.38 9.3 46.62 0.0 0.00 D 46.6% Calcium Carbonate added: Avg Error 0 -100 % CPS Range: Max Error 0 - 100 % CPS Range: 20 Ib/bbl 3.50 % 17.01 % e e ~ .. ..:::...~ IFE Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. Interval Summary - 6-1/8" hole 7747 -10863' Drilling Fluid System Flo-Pro Fluid Key Products Flo- Vis / DualFlo / KCl / Greencide 25G / SafeCarb F, KlaGard / MI Bar / Caustic Soda / Conqor 404 / SafeScav NA Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens - 2l 0 - 230 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions Interval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss pH Solids (ft) (ppg) (cp.) ( cps ) (ml/30min) (%) 7747 - 10863' 9.2 - 9.4 lO - l4 40,000 <5 +/- 9.5 +/- 5% ~ Use one rig pit for drilling out intermediate casing. In other rig pits, build new Flo-Pro fluid using the enclosed formula. ~ If running coals become a problem, treat with a 2 PPB addition of Asphasol Supreme. ~ Periodic additions of Greencide 25G will be needed to control bacteria build-up. ~ Estimated volume usage for interval- 1364 barrels. ~ Estimated haul off volume - 2719 barrels. ~ Condition mud prior to running 3-1/2" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. F!i4 ~IFE ~ e Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. e Production Interval Fluid Formula 8-/12" Interval from 7747 - 10863' Déscription Mud Weight Weight Material Code Weight Material SG Weight Material Price Sea Water Sea Salt M-I Gel M-I Gel Price Input Cannery Loop Unit #7 9.05 Prehydrated Gel SafeCarb Prehydrated Gel Cone. 2.8 KCI Chloride 0.35 KCI Wt% No KCI Price No NaCI Chloride NaCI Wt% NaCI Price Order of Addition 1 2 3 4 bA 5B 6 7 8 9 10 11 12 13 Output - 1 bbl Concentration Field. Ib Lab. gm Water 325.19 325.19 Soda Ash 0.25 0.25 FloVis Plus 1.25 1.25 DualFlo 6.00 6.00 SafeCarb Fine 14.00 14.00 SafeCarb Medium 6.00 6.00 Potassium Chloride 20.76 20.76 Greencide 25G 0.25 0.25 CONQOR 404 2.00 2.00 Caustic Soda 0.50 0.50 SafeScav NA 0.25 0.25 If Bit balling becomes a rroblem, add the following D-D 4.00 I 4.00 I 0.011 I 4.00 If sliding or high torque becomes a problem add 1 - 3% of the following Lubetex I 7.00 I 7.00 I 0.021 I 7.00 If sloughing coals become a problem add 2 - 4 ppb of the followinQ Asphasol Supreme I 2.00 I 2.00 I 0.004 I 1.33 Mix fluid in the order listed above. Wait for 1 - 2 circulations before adding SafeScav NA to the system. Alternate additions of Greencide 25G and SafeScav NA as needed. Maintain 5 - 6 ppb concentration of DualFlo to maintain as Iowa API fluid loss as possible. Plan on daily additions of DualFlo to achieve> 6.0 cc's API Fluid Loss Reduce concentration of FloVis as needed to maintain rheology. Products I Volume Field, bbl 0.929 0.000 0.003 0.011 0.015 0.006 0.025 0.001 0.004 0.001 0.001 No 6 0.2516 Lab, ml 325.19 0.10 0.84 4.00 5.30 2.30 8.68 0.30 1.43 0.23 0.25 Product Usage Reduce Hardness Viscosity Fluid Loss Control Bridging Agent Bridging Agent Inhibition Biocide Corrosion Control pH Control Oxygen Scavenger Reduce BHA Balling Lubricity Well bore Stability Total I Calculated Mud Weight Total Chloride 380.1 380.1 9.050 29600 Estimated Volume Usage I 1364 Barrels r:zJI;lFE ~ Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. 1.0 0.9 G.B c: .2 :s O.7~· ~ II> Õ Q) N üi <b ;:; "E '" a. Q) 0.4--~- :> +:: '" :¡ E 0.3- :J U 0.2·~~-- 0.1 1~10-2 © 1999·2001 M-I L.L.C . All Rights Reserved 1x100 Particle Size (microns) IFE Marathon Oil Co. Cannery Loop #7 Cannery Loop Field Tyonek Top Max Permeability: Sand Control Device: 200 mDarcy DiD Target I Blend: 0.6 D50 Target I Blend: 14.1 D90 Target I Blend: 45.8 1.2 microns 12.3 microns 77.8 microns Brand Name B=Safe·Carb 10 IF) D=Safe·Carb 40 1M) E=Safe·Carb 250 IC) Bnde¡ine¡ Ac¡ent tlblbblWol % 14.4 72.20 5.6 27.80 0.0 0.00 1>:'1 04 Calcium Carbonate added: Avg Error 0 -100 % CPS Range: Max Error 0 ·100 % CPS Range: 20 Iblbbl 3.58 % 12.46 % e e GIÆ Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. HSE Issues HANDLING OF DRilLING FLUID PRODUCTS HEALTH AND SAFETY l. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ENVIRONMENTAL l. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. F!7 4 ~IFE œ.œ Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. Product Function M-I BAR Weighting Agent E M-I GEL Viscosity control E GELEX Bentonite Extender E FLOVIS Viscosifier DUAL-FLO Modified Starch E POLYPAC Fluid Loss Reducer E XCD Viscosifyer E HEC Loss Circulation Material E Safe-Carb F,M,C Bridging and weighting E agent LO WA TE Weighting agent E Nut Plug Loss Circulation Material E M-I Seal F, M, C Loss circulation Material E Mix II F,M,C Loss circulation Material E DESCO CF Dispersant E SPERSENE CF Dispersant E TANNATHIN Dispersant E VENTROL 401 Surfactant SAL T (Solar) Densifier BROMIDE (NaBr) & Densifier Brine Solution POTASSIUM Shale Inhibitor E CHLORIDE - Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. Product Function CAUSTIC SODA Alkalinity control CAUSTIC POTASH pH Modifier BORAX Inorganic Borate SAPP Sodium Pyrophosphate SODA ASH Alkalinity control SODIUM Alkalinity control BICARBONATE CITRIC ACID pH Adjuster BIOBAN BP-PLUS Biocide GREEN CIDE 25G - Biocide DEFOAM X - Defoamer G-SEAL Sized graphite LCM KLA-GARD Shale Control agent LUBE TEX Lubricant D-D CWT Detergent Concor 404 Corrosion Inhibitor SAFE KLEEN Drilling fluid additive AsphasolD Shale Inhibitor Soltex Shale Inhibitor SafeScav NA Oxygen Scavenger IFE e e - ~IFE Marathon Oil Company Well Name: Cannery Loop Unit #7 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 - Severe hazard 3 - Serious hazard 2 - Moderate hazard 1 - Slight hazard o - Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A - Safety Glasses B - Safety Glasses, Gloves C - Safety Glasses, Gloves, Synthetic Apron D - Face Shield, Gloves, Synthetic Apron E - Safety Glasses, Gloves, Dust Respirator F - Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G - Safety Glasses, Gloves, Vapor Respirator H - Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I - Safety Glasses, Gloves, Dust and Vapor Respirator J - Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K - Air Line Hood or Mask, Gloves, Full Suit, Boots X - Consult your supervisor for special handling directions ~ ~IFE œœ Marathon Oil Company Wen Name: Cannery Loop Unit #7 Location: Kenai, Alaska. . MI Project Engineer and Tech Service Engineer will coordinate between the Marathon office, rig, warehouse, and the M-I field engineers. . Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. Project Team Title Home Cellular Craig Bieber District Manager 907345-1239 907229-1196 Deen Bryan Tech Service 907 373-2713 907 223-1634 Tony Tykalsky Project Engineer 907376-4613 907227-2412 Gus Wik Warehouse Manager 907 776-8722 907776-8680 Bob Williams Senior Engineer 907 248-5857 907 590-3636 Floyd Faulkner Senior Engineer 907349-8147 907590-3636 IFE e 'M..') Marathon I ,MARATHON Oil Company . Alaska Region Domestic Production P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/564-6489 November 17, 2003 Sarah Palin Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West ih Ave, Suite 100 Anchorage, AK 99501 Reference: Revised Drilling Permit Application Field: Cannery Loop Well: Cannery Loop Unit - CLU 7 Dear Ms. Palin / Enclosed please find a revised PERMIT TO DRILL application, along with the associated attachments. After speaking with Mr. Bob Crandle there were several items that required either revision or clarification. Because of the changes Mr. Crandle recommended that a complete permit packet be sent. Attached is that packet. The intent of this well is to drill a Beluga development well in the Cannery Loop Unit. No completion is desired in either the Sterling or Tyonek pools. If you require further information, I can be reached at 907-564-6310 or bye-mail at wjtank@marathon.com. Sincerely, !! I . ii f, /! )1'" .1/1 I' i. Ii ~ ;, 'J ".~ l'.;,· " l " ., r 1./I..1.11fl4 /~~vV\J!/' Willard J. Tank Senior Drilling Engineer Enclosures ORIGt~\JAL Check No Check Date Bank Bank No Vendor N' 11/05/2003 NCBAS 77BO 5001123 Marathon Oil Company P. O. Box 3128 Houston, TX 77253 ~ Direct Inquiries to: ACCOUNT. S PAYABLE DEPARTMENT Accts Payable - Customer Serv Phone: 713-296-4336 >·............¢i#~,<\mM¥..·......····· ··>~@I~Wp~y.Ai@M(... . 100.00 100.00 100.00 100.00 Hndlg 1101305 AL ../i@@@...@i@~~.·...·.·. .,.@,í~@..þ~~~ A0100.00 11/04/2003 900031099 PERMIT FOR CLU 7 - SEND TO BETTY VELDHUIS X48 TOTAL: (FOLD ON PERFORATION BELOW AND DETACH CHECK STUB BEFORE DEPOSITING) .__.. __. ~!'-..~ [I}¡ ¡iÏf~1:.i: III ~III ~-i.-ii¡iï~':1 ~ II ~ [tI:m II.~' ~ 11-.: I::Ï.Ï!: I:(~:~ :B~ :<~ :ÏIlII~II.~' :1:11 I~~'~[I] 11I::11"'.: I::Ï 11I1 ~I:::I:I::: .li'II_IiI] ~ I ,~, I~¡'~I'I[~ :[I]:, :ïl~..IÚC: ... FORM25011<Eíì5ïão·-·-····-·····-·----····---·---·-·· ...... ." ........ - ....-........ . ....-....------ .............. .......... ...... .,,- ..'."-..--.. -..---....---.. 7780 Marathon Oil Company P. O. Box 312B Houston, TX 77253 56-389/412 ACCOUNTS PAYABLE CHECK CHECK DATE 11/05/2003 .. CHECK NUMBER. .... ...... .1101305 .. ":::::1:::; By: . .. ..:".---.- --.---".......;.----- - -,,",-. ,_.. . _n::::.:· n.___'_,._______._ "._""..'" - MATCH AMOUNT IN WORDS WITH NUMBERS r II:.Æ'.!:/ ...::::.... n; .....: .....:::h.. .:.;":":.:.: . ... . . ....,. .. . . . .' , VOID AFTËR ll:iODAYS PAY TO THE ORDER OF: gwr...SKA OIL & GAS C(/,'·¡3EH~ ..,',-rtm> COMMISSION 333 WEST 7TH AVE STE 100 ANCHORAGE, AK 99501 u.s. Funds NATIONAL CITY BANK Ashland, Ohio 1;;:;" .. ... . .. ... . . ..... .. ... .... ß¥:Ii@t~::@!MtJ9Q:·Þ9M~;:::::;::::;;: ~.; ~.~.' ~.~.~.;.~.1.,~.1.;.·~.I..~ ~...~ :. :. :. .. ..:.:.:.'.;;. ..' ;.~.._: :." ~.\.. ..: ~ ;:;: ;~:;::~:: _ :':.. .:';¡'~'¡.~.J':,¡ -..--.--.;¡~;"i[~ .;,~~1·:.ïí~ï.~=i.~.:i~;~-:-I;¡~·fi~;]~å;~i~·i~:;¡·Ù~; ~·:~~·;~;;¡~,~·~;.:[;]~~;(¡;.-t~:..{;.;jl~;;;._.:);;¡. ì~i:~,~Ì;i;j;¡:et;]i;~,-I·~~:;I~ii~~{~]-~~ï)~..I~[~c-,-.c:: III 0 0 0 ¡. ¡. 0 ¡. 31 0 5 III I: 0 L. ¡. 2 0 j 8 9 51: 0 ¡. 8 j L. 8 L. III e e TRANSMJT AL LETTER CHECKLIST CIRCLE APPROPRIATE LETTERlPARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME PTD# CHECK WHAT APPLIES ADD-ONS (OPTIONS) MULTI LATERAL (If API number last two (2) digits are between 60-69) "CLUE" The permit is for a new wellbore segment of existing weD ~ Permit No, API No. Production should continue to be reported as a function· of the original API number. stated above. HOLE In accordance with 20 AAC 25.005(1), all records, data and logs acquired for the pilot hole must be clearly differentiated in both name (name on permit plus PH) and API number (50 70/80) from records, data and logs acquired for well (name on permit). PILOT (PH) SPACING EXCEPTION DRY DITCH SAMPLE Rev: 07110/02 C\jody\templates The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. (Companv Name) assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. WELL PERMIT CHECKLIST Company_MðRATHQt-.tQIL CO Well Name: Ct\NNE8Y_LO_Q~_W~IT_.. n-L PTD#: 203191 0 Field & Pool nKEN.L\LC_.L.U.__B.ELUGiLGAS_-=A48_5]5_.__._~__.~_________ Initial Class/Type _DEY-.L1.:-G.L\Sn.. GeoArea Administration 1 Pe(mit fee attacheq . Yes _ 2 Lease number appropriate Yes 13 .U.ni.q!J~ W~II. n.arnß .artc:! Dl!l1Jb.er . . . . . . . . . . _ . . . . _ . . . . . . . _ _ . . . . . . _ . _ . . . . .Yß$ . . . . . . . . _ . _ . . . . . _ _ . . . . . . _ . _ . . _ _ _ . . . _ _ . . . _ . _ . _ . _ . . . . _ . . . . . . _ . _ . _ . _ . . . . . . _ . _ . '4 Well located ina definedpQol yes 15 WelUocated pr.operdistance from drilling unit boundary Yes i 16 .Well.located pr.operdistance from other wells Yes 7 .S.ufficiellt.acrea.ge.aYa.il~ble in dJilliog unit. Yes. 8 If.deviated, is. wellbore plat inclu.ded . _ Yes 9 Oper.ator only affected party. Yes. . . . . . . . 1 0 _Qp~r.ator bas_apprppriate. b.ond i.n.fQrç~ _ _ _ _ _ _ _ _ _ _ . _ . . _ _ _ . _ _ _ . _ _ . . . _ . _ . . _ .Yß$ _ _ _ _ _ . _ _ . . . . . _ _ _ _ _ . _ . _ _ _ _ . . . . _ _ _ _ _ _ _ _ _ . . . . . . _ _ _ _ _ _ . _ . _ . . . _ . _ . _ _ _ . _ _ . . _ . . . _ _ 11 'p'e(mit can be issl!eq without conservaiion order. . Yes _ Appr Date 12 .Pß(mit can be issueq without administrati",e. apprpval No RPC 11/18/2003 13 Can permit be approved before 15-day wait Yes 14 .WeJUocated wiihin area an.d.strata .authorized by.lnjectioo Orde( # (putlO# in.cpmments).(For NA . . . . . . . . . . 15 .AJlw.elJs_witni.n.1¿4_nJil.e_are.a_of(eyi.ewidßDt[fi.ec:!(Fp(~erv,ic_e.w.etl911Iy). _ _ _ _ _ _ _ _... _ _ _ NA. _ _ _ _. _ _ _ _ _.. _ _. _ _ _ _ _. _. _ _ _ _ _. _ _ _ _ _ _ _ _ _ _. _ _.. _ _ _ _ _ _ _. _. _ _. _ _ _ _ _ _.. _ _... _ _ __ 16 Pre-proc:!u.ced inj.ector: Qur~tIQn.of pr.e-:PfoQuc;tiQrI Less. than. 3 months. (For.s.ervi.ce well. only) NA. . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . 17 .ACMP. FInding.of Con.si.stenC;y.h.8S þ~e.n.I~sued. fpr,tbis pr.oiect. . . . . . _ . . _ _ . . . . . . . . . NA . . . . . . . . . . _ . . . . . . . . . . . . . . . . ------------.. ---~-.__..._------ -,---~---_._..,,-------~-_._-_._--- -.-----------. Appr WGA 18 19 20 21 22 23 24 25 26 27 Date 28 11/18/2003 29 30 31 32 33 34 Engineering Unit Program DEV... On/Off Shore On Well bore seg Annular Disposal ------.-- -------..-----.----.---..-.----.-..-.---------.-.-----.-- .C.ortdu.ctor st(ing.PJovid.ed . . . . _ . . . ._ . . . . . . . . . . . . . . _ . . . _ . . . . . . . . . .Yes ......... _ _ _ . . . . . . . . . _ . _ _ S.ur:fa.c.ecasing.PJQtects all.known USQWs . Yes. . . . . . . . . . . . . . . . .CMTvol.ad.equ.ate.to circ!Jtate.o.n_cpnd.uctpr.& surfc.sg .. . . . _ . Yes _ . . . .L\de.qua.te ex.cess. . . . . .CMT v.ot ad.equ.ate. to ti~-i.n .long .strIng to,s!JrJ csg, .No. . . . . . . .. .... _ . . . . . . . . . . . . .GMT. will coyerallkrlQwn .productive horizon.s. Yes, . . . . _ . . . . _ . _ _ _ ._ . .Casing de.signs adequate fo( C,.T, B .&. permafrost Yes. .AQequ~te.tankage. OJ r~serye pit Yes. . Glacier.Rig 1.. , . .. . . .. . _ . _ . . If.a.re-Qr.III, bas.a 10:-4.03 forabançlon.rn.ent beeQ apPJoved . . .. . . . . . . NA . . . . . . . _ . _ . . . . . . . . _ . . . . . . . . . _ . . . . . . _AQequptewe!lbor~ ~epªr¡:itjo_n .prop9~eÇ _ _ _ _ _ _ _ _ _ _ _ _ _ . . . _ _ _ _ _ _ _ _ _ _ . _ _ _ _ . . .Y.e$ _ . _ _ _ _ _ _ _ _ _ _ . _ . _ _ _ . _ _ _ _ . . . . _ . _ _ _ . . . _ _ _ _ _ _ _ . _ _ _ _ _ _ _ . _ _ _ . _ . . . . . _ _ _ _ _ . _ _ _ _ . . _ . .If.d..iver:t~r J~q.uIJ~d., dQes .it .rn.e.et. r~gu.latipl1s. . . . . . _ . Yes .. . _ . . . . . . . . . . . . . . . . . . . . DJiUiOg fluid.progra.m schematic.& eq.uipJistaçlequate. . .. . . _ . . . . . . . . . . _ . .Yes . . . .. Max MW.1.Dc8.ppg.. _ . . .' . . . . _ . . . . . . . . . .. .. .. .BOPEs,.do .they .me.et regulatipl1 _ . . . . . . . . . . . . . Ye$. . _ .. . . . . . . . . .. . _ . . . .B.QPE.pre.ss ra.tiQg apPfop(iate; .t~st to.(put psig In ..comm~l1ts). . . . . _ . . . _ _ .. _ . . .._ . Yes .. . . T~st to .3000. psj. .MSP. 26.82 psi.. . . . . .. . . _ . . . . . . . .. . . . .. . .C.hpke.nJanifolçl complies. vy/API.RP.-53 (May 84). . . . _ . . . . . _ . . . . . . Yes.. . . . . . . . .. . .. . . . .. . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . WQrk will oC;C.U( vyithout.oper;ation .shutdown. . . . . . . . .. . . . . . . . Yes. . . . . . . . . _ . . . . . . . . . _ . . . . . . . . . . .I~ :;!res.ence. of H2S gas. prob.able. . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . No. . . .. . .. . _ . . _ . . . . . . . . _ . _ . '. . . . . . _ . .. . . . .. _ . Mecba.nical.corlditi.on .ot vy~lIs wI.thil1 AOR verified (Fpr. s.ervic.e w.e1J only). . . . . . . . . NA. ............ _ ._ _ . . . . . . _ . .. . . . .. .. .. _ . . . . . . . . . - - - - - - - - - - . . - - - - - - - - - - - - - - - - - - - - - - - - - Geology -_.._.._-_._-,...__.,--_.__.__.~..._--~...,._-,---,~.----,'"--.--.--.----.------.-----.--.-.---..--,--..--..---......-..---.-----,..--...-"-,.--.--"...---.,,.------..-.----.-. .. _ w _ _ _ _ Appr RPC 35 36 Date 37 11/18/2003 38 39 Geologic Commissioner: ()'s ----.---.---.--..-.---.-----.....---.-.-.-.--------------'----'_..._--._..__._---_._---.--,-----,~._-_._----...--,--.---.-.--..--. ---,---."-".--..-..--..-----.-....-,.. --...._-"--------------- ...----..-----..-..---.---..---...-.-..-,-.--.- Pß(mit. cao be I.ssueq w!o. hy¡j(ogen. s.ulfide meaS!J(e$. . .D.ata.preselJted on. pote.ntial pveJPre~surß .Z9I1e,$. .Seismic.analysjs of $ba.llow gas.zpn~s. . ... . . _ _ .. . , . . ... ........ .Sßªbeq .condJtiPD $l!rvey.(if off-sh.o(e) . . . . , . . . . . . . . . . .. Co.nta.ct. l1a.m.eLphon.e.for.weelsly prpgre~s.report$ [exploratpry .only]. . .. . Yes. NA. . NA NA. NA. ~ - - - - - - - - .. - - - - - - - - - - - - - - - - - - - - - - - - - - .. - . - - . - - . - - - - - - - - - - .. - - - - - - - - - - - - - - - - - - - - - ~ - - - - . - - - - - - . - - . - . - - . - - - - - - - - - - - .. -. - - . - - -- - - - - - - .. - - - - - - . . - - - - - - - ~ ~ . Date: Engineering Commissioner: Date Public Commissioner ~/~7- /8 It f \.9{ j [] ( , ~