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Home My WebLink About204-1141. Operations Susp Well Insp Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Install Whipstock Perforate Other Stimulate Alter Casing Change Approved Program Mod Artificial Lift Perforate New Pool Repair Well Coiled Tubing Ops Other: N2 Development Exploratory 3. Address: Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number): 8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071): 10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 8,900 feet 4,965' feet true vertical 6,734 feet 8,360 (fill/fish) feet Effective Depth measured 4,965 feet 4,021 feet true vertical 3,245 feet 2,543 feet Perforation depth Measured depth See Schematic feet True Vertical depth See Schematic feet Tubing (size, grade, measured and true vertical depth) 3-1/2" 9.2# / L-80 4,055' MD 2,563' TVD Baker ZXP Liner Packers and SSSV (type, measured and true vertical depth) Top Pkr; N/A 4,020' MD 2,543' TVD N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: N/A 13a. Prior to well operation: Subsequent to operation: 13b. Pools active after work: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Authorized Name and Digital Signature with Date: Contact Name: Contact Email: Authorized Title: Contact Phone: Scott Warner, Operations Engineer 324-355 Sr Pet Eng: 10,540psi Sr Pet Geo: Sr Res Eng: WINJ WAG 9 Water-BblOil-Bbl 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Noel Nocas, Operations Manager 907-564-5278 N/A scott.warner@hilcorp.com 907-564-4506 measured true vertical Packer Representative Daily Average Production or Injection Data Casing Pressure Tubing Pressure 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf MD 25 Size 110' 0 2735 0 690 65 measured TVD 10,160psi 7" STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 204-114 50-231-20023-00-00 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Hilcorp Alaska, LLC N/A 5. Permit to Drill Number:2. Operator Name 4. Well Class Before Work: FEE-CIRI Deep Creek / HV Beluga-Tyonek Gas Happy Valley A-08 Plugs Junk measured Length Production Liner 4,168' 4,876' Casing Structural 2,630' 3-1/2" 4,168' 8,897' 6,731' 111'Conductor Surface Intermediate 16" 9-5/8" 111' 1,194' 5,410psi 5,750psi 7,240psi 1,194' 1,130' Burst Collapse 3,090psi p k ft t Fra O s 6. A G L PG , Form 10-404 Revised 10/2022 Due Within 30 days of Operations Submit in PDF format to aogcc.permitting@alaska.gov By Grace Christianson at 7:47 am, Jul 25, 2024 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2024.07.24 15:41:28 - 08'00' Noel Nocas (4361) Page 1/1 Well Name: DCU HVA-008 Report Printed: 7/24/2024www.peloton.com Alaska Weekly Report - Operations Jobs Actual Start Date:6/26/2024 End Date: Report Number 1 Report Start Date 6/26/2024 Report End Date 6/26/2024 Last 24hr Summary SL arrived onsite, Completed PTW & PJSM. RU on well. PT to 2500 psi. RIH W/ 1.5"x6' DD bailer, tag at 8,287' KB, W/T, POOH RIH W/ 2.7" blind box, tag fluid level at 1,100' KB, POOH. RDMO well Report Number 2 Report Start Date 7/12/2024 Report End Date 7/13/2024 Last 24hr Summary Yellow Jacket E-line PTW, JSA with Fox N2. YJ Eline PT 250 psi low/2500 psi high. Fox N2 PT equipment and hardline 250 psi low/3500 psi high. RIH with 1 11/16" GPT found fluid level @ 4197' . Bull head N2 and push fluid level down to 5120' . RIH with 2.75" CIBP and set at 4965'. Bleed N2 down and hold 1000 psi on wellhead. RIH with 2 3/8"x8' gun loaded 5 spf. Perforate the BEL_31 Sands from 4890'-4898'. No change in WHP after 5/10/15 minute readings. RIH with GPT. NO fluid across zones. Pressure up well from 700 psi to 1000 psi with N2. RIH with 2 3/8" x 10' perf gun. Perf the BEL 23 sands from 4754'-4764'. No change in WHP after 5/10/15. POOH to surface . RDMO YJES. Field: Deep Creek Unit Sundry #: 324-355 State: ALASKA Rig/Service:Permit to Drill (PTD) #:204-114Permit to Drill (PTD) #:204-114 Wellbore API/UWI:50-231-20023-00-00 Updated by DMA 07-24-24 SCHEMATIC Happy Valley Well HVA-08 PTD: 204-114 API: 50-231-20023-00-00 Last Completed 4/21/05 NOTE: Slickline had problem hanging up at 4056' when running square-shoulder tool (8/15 & 12/9/04). Stimulation: Frac stimulated B-40 perfs (5235' - 5304' gross) on 12/15/04 with 103,000 lbs of 20/40 sand in BJ Lightning-2000 gel. Casing and Tubing Detail Size Type Wt/ Grade Top Btm CONN/ID Cement/Other 16Structural 82.77#, K-55 Surface 111 9-5/8Surface 40#, L-80 Surface 1,194 BTC/ 8.835 67 bbl of 12.8 ppg lead and 31 bbl of 15.8 ppg tail "G" 7 Surface 26#, L-80 Surface 4,168BTC-Mod/ 6.184 71 bbl of 12.8 ppg LiteCrete lead and 15 bbl of 15.8 ppg "G" tail. 3-1/2Liner 9.2#, L-80 4,021 8,897 IBT-Mod/ 2.992145 bbl of 12.0 ppg Litecrete Tubing 3-1/2Production 9.2#, L80 Surface 4,055IBT-Mod/ 2.992 Annulus loaded with fresh water plus Baracor 100 corrosion inhibitor Jewelry Detail No. Depth Length ID OD Item 1. 2,501 7.40 2.992 5.25 Chemical injection sidepocket mandrel (Macco SFO-1C-I) with 1/4", 0.049" wall SS chemical injection line 2.4,02015.104.2766.06Baker ZXP packer 3.4,0271.192.9925.0Fluted Locator sub (L-80 IBT) 4.4,0369.704.4085.924Flexlock liner hanger 5.4,04616.983.003.99Baker 80-40 seal assembly 6.4,0560.503.003.99Muleshoe 7.4,965N/A N/A N/A CIBP (7/12/24) 8.5,21940.321.602.723-1/2 TTS Patch (DIL depths not corrected to RKB) 9.5,28024.831.602.723-1/2 TTS Patch (DIL depths not corrected to RKB) 10.5,68167.731.602.723-1/2 TTS Patch (DIL depths not corrected to RKB) Perforation Detail Zone Top MD Btm MD Top TVD Btm TVD SPF Comments B-23 4,754 4,764' 3,069'3,0776 7/12/24 B-31 4,890' 4,898' 3,182' 3,188' 6 7/12/24 B-31 4,972'4,988 3,251 3 265 63/9/2005 B-40 5,235'5,244 3,477 3, 484 68/17/04,Isolated 3/10/09 5,254 5,262 3,493 3, 500 68/17/04, Isolated 3/10/09 5,295 5,304 3,528 3,536 68/17/04, Isolated 3/10/09 B-45 5,694 5,718 3,874 3,895 68/26/04, Isolated 3/10/09 5,729 5,749 3,905 3,922 68/26/04, Isolated 3/10/09 B-50 6,073 6,083 4,202 4,211 68/17/2004 6,100 6,110 4,225 4,234 68/17/2004 6,116 6,124 4,239 4,246 68/17/2004 6,128 6,134 4,249 4,254 68/17/2004 B-65 6,504 6,518 4,572 4,584 68/26/2004 B-80 6,738 6,748 4,773 4,782 68/26/2004 6,759 6,765 4,792 4,797 68/26/2004 6,772 6,782 4,803 4,811 68/15/2004 6,791 6,801 4,819 4,828 68/26/2004 B-100 7,248 7,262 5,219 5,232 63/9/2005 T-1 7,910 7,930 5,814 5,832 68/11/2004 7,949 7,959 5,850 5,859 68/11/2004 T-6 8,247 8,277 6,124 6,152 68/11/2004 T-6B 8,336 8,354 6,207 6,224 63/9/2005 T-7 8,393 8,404 6,260 6,270 68/11/2004 T-10 8,541 8,581 6,398 6,435 68/9/2004 1. Type of Request:Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: N2 2.Operator Name:4. Current Well Class: 5. Permit to Drill Number: Exploratory Development 3. Address:Stratigraphic Service 6. API Number: 7. If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Yes No 9. Property Designation (Lease Number):10. Field: 11. Total Depth MD (ft):Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: Junk (MD): 8,900'8,360' (fill/fish) Casing Collapse Structural Conductor Surface 3,090psi Intermediate Production 5,410psi Liner 10,540psi Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments:Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16. Verbal Approval:Date: GAS WAG GSTOR SPLUG AOGCC Representative: GINJ Op Shutdown Abandoned Contact Name: Contact Email: Contact Phone: Authorized Title: Conditions of approval: Notify AOGCC so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other Conditions of Approval: Post Initial Injection MIT Req'd? Yes No APPROVED BY Approved by: COMMISSIONER THE AOGCC Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng Baker ZXP Liner Top Pkr; N/A 4,020' MD / 2,543' TVD; N/A 6,734'8,407'6,272' Deep Creekk HV Beluga/Tyonek Gas 16" 9-5/8" See Attached Schematic 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Happy Valley (HV) A-08CO 553A.001 Same 2,630'7" ~2,176psi 4,168' N/A Length June 26, 2024 8,897'4,876' 3-1/2" 6,731' 4,168' Perforation Depth MD (ft): 3-1/2" See Attached Schematic 5,750psi 110'111' 1,194' Size 111' 1,194' MD Hilcorp Alaska, LLC Proposed Pools: 9.2# / L-80 TVD Burst 4,055' 7,240psi 1,130' Tubing MD (ft):Perforation Depth TVD (ft): Subsequent Form Required: STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEE-CIRI 204-114 50-231-20023-00-00 Tubing Size: PRESENT WELL CONDITION SUMMARY Scott Warner, Operations Engineer AOGCC USE ONLY 10,160psi Tubing Grade: scott.warner@hilcorp.com 907-564-4506 Noel Nocas, Operations Manager 907-564-5278 Suspension Expiration Date: Will perfs require a spacing exception due to property boundaries? Current Pools: MPSP (psi):Plugs (MD): 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior writte n approval. Authorized Name and Digital Signature with Date: m n P s 66 t 2 N Form 10-403 Revised 06/2023 Approved application valid for 12 months from date of approval.Submit PDF to aogcc.permitting@alaska.gov By Grace Christianson at 2:45 pm, Jun 19, 2024 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2024.06.19 14:15:09 - 08'00' Noel Nocas (4361) 324-355 10-404 DSR-6/21/24SFD 6/20/2024 Perforate BJM 6/24/24 *&:JLC 6/24/2024 Brett W. Huber, Sr.Digitally signed by Brett W. Huber, Sr. Date: 2024.06.24 15:24:35 -08'00'06/24/24 RBDMS JSB 062524 Well Prognosis Well: HVA-08 Date: 6/17/24 Well Name: HVA-08 API Number: 50-231-20023-00-00 Current Status: Producing Gas Well Permit to Drill Number: 204-114 Regulatory Contact: Donna Ambruz (907) 777-8305 First Call Engineer: Scott Warner (907) 564-4506 (O) (907) 830-8863 (C) Second Call Engineer: Chad Helgeson (907) 777-8405 (O) (907) 229-4824 (C) Maximum Expected BHP: 2816 psi @ 6398’ TVD Based on 0.44 psi/ft Max. Potential Surface Pressure: 2176 psi Based on 0.1 psi/ft gas gradient to surface Applicable Frac Gradient: 0.78 psi/ft using 14.9 ppg EMW FIT at the surface casing shoe Shallowest Allowable Perf TVD: MPSP/(0.78-0.1) = 2176 psi / 0.68 = 3200‘ TVD Top of Applicable Gas Pool: ~3375’ MD/ ~2241’ TVD Well Status: Online Gas Producer flowing at 9 mcfd, 0 bwpd, 65 psi FTP Brief Well Summary HVA-08 was drilled and completed in August 2004 targeting the Tyonek and Beluga sands in the Happy Valley Field. Production reached a high of ~3 mmscfd but declined quickly after before stabilizing around 300-400 mscfd until 2021 when it loaded up and died. Operations attempted to soap and unload to a tank for few days followed by swabbing fluid with slickline. Slickline was able to swab down to the top of the patch that is set at 5,219’ but production has not been sustained since. The purpose of this sundry is to set a plug and isolate the current producing zones and perforate additional footage in the Beluga 23 and 31 sands to increase production. Notes Regarding Wellbore Condition x Inclination o Max deviation of 65.9° @ 2,877’ MD x Recent Tags/Fish o Note: Toolstrings with square shoulders have had problems hanging up in the packer sealbore assembly in the past at ~4056’ o 9/10/17: SL tag broken cap string/ injection nozzle fish w/ 1.5” DD bailer o 9/8/18: HAL Eline PLT- RIH w 1” PLT and logged from 4900’-8300’ o 12/8/21: RIH/w 3 1/2" Swab mandrel w/ 4 cups w/ 3 1/2" Swab mandrel /w 4 cups to fluid at 4250' o 6/2/24: Ops shot fluid level and found fluid below 6000’ Procedure: 1. MIRU E-line and pressure control equipment 2. PT lubricator to 250 psi low / 2,500 psi high 3. Drift with GR in prep to set CIBP at ~4970’ 4. Using on pad gas, pressure well up to 1000 psi 5. RIH and perforate B-31 sand, 4890’-4898’ MD, POOH 6. RIH and perf B-23 sand, 4754’-4764’. Prior to perforating, bleed pressure down to ~1000 psi if any pressure has built after perforating the B-31 sand, POOH Sand Top MD Btm MD Top TVD Btm TVD Interval BEL 23 ±4,754 ±4,764' ±3,069' ±3,'077 ±10' BEL 31 ±4,890' ±4,898' ±3,182' ±3,188' ±8' See attached revised procedure. Superseded Well Prognosis Well: HVA-08 Date: 6/17/24 a. Proposed perfs are also shown on the proposed schematic in red font b. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation c. Use Gamma/CCL to correlate d. Record Tubing pressures before and after each perforating run at 5 min, 10 min, and 15 min intervals post perf shot (if using switched guns, wait 10 min between shots) e. If any zone produces sand and/or water or needs isolated, RIH and set plug above the perforations OR patch across the perforations f. If necessary, use nitrogen to pressure up well during perforating or to depress water prior to setting a plug above perforations 7. RDMO a. If necessary, run cap string to aid with water production if encountered post perforating i. RU Cap String Truck ii. Stab 3/8” capillary line into wellhead pack-off assembly. Make up BHA components. Install pack-off and pressure test against swab valve to 2500 psi iii. RIH with 3/8” capillary string to ±4800’ MD a. Set cap string as deep as practical in fluid iv. Install slips and connect tubing to chemical injection pump v. Set spool of remaining line near well vi. RD cap string Unit, and turn well over to production Attachments: 1. Current Schematic 2. Proposed Schematic 3. Standard Well Procedure – N2 Operations Superseded Updated by DMA 10-04-17 Happy Valley HVA-08 Happy Valley Well HVA-08 Last Completed 4/21/05 Perforation Data ZONE TOP BTM Shot Condition B-31 4,972'4,988’6 3/9/05 B-40 5,235'5,244’6 8/17/04,Isolated 3/10/09 5,254’5,262’6 8/17/04,Isolated 3/10/09 5,295’5,304’6 8/17/04,Isolated 3/10/09 B-45 5,694’5,718’6 8/26/04,Isolated 3/10/09 5,729’5,749’6 8/26/04,Isolated 3/10/09 B-50 6,073’6,083’6 8/17/04 6,100’6,110’6 8/17/04 6,116’6,124’6 8/17/04 6,128’6,134’6 8/17/04 B-65 6,504’6,518’6 8/26/04 B-80 6,738’6,748’6 8/26/04 6,759’6,765’6 8/26/04 6,772’6,782’6 8/15/04 6,791’6,801’6 8/26/04 B-100 7,248’7,262’6 3/9/05 T-1 7,910’7,930’6 8/11/04 7,949’7,959’6 8/11/04 T-6 8,247’8,277’6 8/11/04 T-6B 8,336’8,354’6 3/9/05 T-7 8,393’8,404’6 8/11/04 T-10 8,541’8,581’6 8/9/04 Casing and Tubing Detail Size Type Wt/ Grade Top Btm CONN/ID Cement/Other 16”Structural 82.77#, K-55 Surface 111’ 9-5/8”Surface 40#, L-80 Surface 1,194’BTC/ 8.835” 67 bbl of 12.8 ppg lead and 31 bbl of 15.8 ppg tail "G" 7” Surface 26#, L-80 Surface 4,168’BTC-Mod/ 6.184” 71 bbl of 12.8 ppg LiteCrete lead and 15 bbl of 15.8 ppg "G" tail. 3-1/2”Liner 9.2#, L-80 4,021’8,897’IBT-Mod/ 2.992”145 bbl of 12.0 ppg Litecrete Tubing 3-1/2”Production 9.2#, L80 Surface 4,055’IBT-Mod/ 2.992” Annulus loaded with fresh water plus Baracor 100 corrosion inhibitor Jewelry Detail #Depth Length ID OD Item 1.2,501’7.40’2.992”5.25”Chemical injection sidepocket mandrel (Macco SFO-1C-I) with 1/4", 0.049" wall SS chemical injection line 2.4,020’15.10’4.276”6.06”Baker ZXP packer 3.4,027’1.19’2.992”5.0”Fluted Locator sub (L-80 IBT) 4.4,036’9.70’4.408”5.924”Flexlock liner hanger 5.4,046’16.98’3.00”3.99”Baker 80-40 seal assembly 6.4,056’0.50’3.00”3.99”Muleshoe 7.5,219’40.32’1.60”2.72”3-1/2” TTS Patch (DIL depths not corrected to RKB) 8.5,280’24.83’1.60”2.72”3-1/2” TTS Patch (DIL depths not corrected to RKB) 9.5,681’67.73’1.60”2.72”3-1/2” TTS Patch (DIL depths not corrected to RKB) S 9- 3- 3- # 1. 2. 3. 4. 5. 6. 7. 8. 9. NOTE: Slickline had problem hanging up at 4056' when running square-shoulder tool (8/15 & 12/9/04). Stimulation: Frac stimulated B-40 perfs (5235' - 5304' gross) on 12/15/04 with 103,000 lbs of 20/40 sand in BJ Lightning-2000 gel. Updated by SRW 06-12-24 PROPOSED Happy Valley Well HVA-08 Last Completed 4/21/05 NOTE: Slickline had problem hanging up at 4056' when running square-shoulder tool (8/15 & 12/9/04). Stimulation: Frac stimulated B-40 perfs (5235' - 5304' gross) on 12/15/04 with 103,000 lbs of 20/40 sand in BJ Lightning-2000 gel. Casing and Tubing Detail Size Type Wt/ Grade Top Btm CONN/ID Cement/Other 16”Structural 82.77#, K-55 Surface 111’ 9-5/8”Surface 40#, L-80 Surface 1,194’BTC/ 8.835”67 bbl of 12.8 ppg lead and 31 bbl of 15.8 ppg tail "G" 7” Surface 26#, L-80 Surface 4,168’BTC-Mod/ 6.184” 71 bbl of 12.8 ppg LiteCrete lead and 15 bbl of 15.8 ppg "G" tail. 3-1/2”Liner 9.2#, L-80 4,021’8,897’IBT-Mod/ 2.992”145 bbl of 12.0 ppg Litecrete Tubing 3-1/2”Production 9.2#, L80 Surface 4,055’IBT-Mod/ 2.992” Annulus loaded with fresh water plus Baracor 100 corrosion inhibitor Jewelry Detail No.Depth Length ID OD Item 1. 2,501’ 7.40’ 2.992”5.25”Chemical injection sidepocket mandrel (Macco SFO-1C-I) with 1/4", 0.049" wall SS chemical injection line 2.4,020’15.10’4.276”6.06”Baker ZXP packer 3.4,027’1.19’2.992”5.0”Fluted Locator sub (L-80 IBT) 4.4,036’9.70’4.408”5.924”Flexlock liner hanger 5.4,046’16.98’3.00”3.99”Baker 80-40 seal assembly 6.4,056’0.50’3.00”3.99”Muleshoe 6a ±4,962’N/A N/A N/A CIBP 7.5,219’40.32’1.60”2.72”3-1/2” TTS Patch (DIL depths not corrected to RKB) 8.5,280’24.83’1.60”2.72”3-1/2” TTS Patch (DIL depths not corrected to RKB) 9.5,681’67.73’1.60”2.72”3-1/2” TTS Patch (DIL depths not corrected to RKB) Perforation Detail Zone Top MD Btm MD Top TVD Btm TVD SPF Comments B-23 ±4,754 ±4,764'±3,069'±3,'077 6 TBD B-31 ±4,890'±4,898'±3,182'±3,188'6 TBD B-31 4,972'4,988’3,251’3 265’6‘3/9/2005 B-40 5,235'5,244’3,477’3, 484’6’8/17/04,Isolated 3/10/09 5,254’5,262’3,493’3, 500’6’8/17/04, Isolated 3/10/09 5,295’5,304’3,528’3,536’6’8/17/04, Isolated 3/10/09 B-45 5,694’5,718’3,874’3,895’6’8/26/04, Isolated 3/10/09 5,729’5,749’3,905’3,922’6’8/26/04, Isolated 3/10/09 B-50 6,073’6,083’4,202’4,211’6’8/17/2004 6,100’6,110’4,225’4,234’6’8/17/2004 6,116’6,124’4,239’4,246’6’8/17/2004 6,128’6,134’4,249’4,254’6’8/17/2004 B-65 6,504’6,518’4,572’4,584’6’8/26/2004 B-80 6,738’6,748’4,773’4,782’6’8/26/2004 6,759’6,765’4,792’4,797’6’8/26/2004 6,772’6,782’4,803’4,811’6’8/15/2004 6,791’6,801’4,819’4,828’6’8/26/2004 B-100 7,248’7,262’5,219’5,232’6’3/9/2005 T-1 7,910’7,930’5,814’5,832’6’8/11/2004 7,949’7,959’5,850’5,859’6’8/11/2004 T-6 8,247’8,277’6,124’6,152’6’8/11/2004 T-6B 8,336’8,354’6,207’6,224’6’3/9/2005 T-7 8,393’8,404’6,260’6,270’6’8/11/2004 T-10 8,541’8,581’6,398’6,435’6’8/9/2004 STANDARD WELL PROCEDURE NITROGEN OPERATIONS 12/08/2015 FINAL v1 Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. From:Scott Warner To:McLellan, Bryan J (OGC) Subject:RE: [EXTERNAL] RE: HVA-08 (PTD 204-114) perf sundry Date:Monday, June 24, 2024 11:59:04 AM Attachments:image002.png Bryan, Yes, I had meant to include a step after the GR drift to set the CIBP. Procedure should read as follows: Procedure: 1. MIRU E-line and pressure control equipment 2. PT lubricator to 250 psi low / 2,500 psi high 3. Drift with GR in prep to set CIBP at ~4970’ 4. Using on pad gas, pressure well up to 1000 psi 5. RIH and set CIBP at ~4970’, outside of any collars. a. If pad gas pressure is not capable of depressing fluid below proposed CIBP set depth, R/U N2 and depress fluid below proposed perf depths prior to setting CIBP as mentioned in step 7f. 6. RIH and perforate B-31 sand, 4890’-4898’ MD, POOH 7. RIH and perf B-23 sand, 4754’-4764’. Prior to perforating, bleed pressure down to ~1000 psi if any pressure has built after perforating the B-31 sand, POOH Sand Top MD Btm MD Top TVD Btm TVD Interval BEL 23 ±4,754 ±4,764' ±3,069' ±3,'077 ±10' BEL 31 ±4,890' ±4,898' ±3,182' ±3,188' ±8' a. Proposed perfs are also shown on the proposed schematic in red font b. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation c. Use Gamma/CCL to correlate d. Record Tubing pressures before and after each perforating run at 5 min, 10 min, and 15 min intervals post perf shot (if using switched guns, wait 10 min between shots) e. If any zone produces sand and/or water or needs isolated, RIH and set plug above the perforations OR patch across the perforations f. If necessary, use nitrogen to pressure up well during perforating or to depress water prior to setting a plug above perforations 8. RDMO CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. a. If necessary, run cap string to aid with water production if encountered post perforating i. RU Cap String Truck ii. Stab 3/8” capillary line into wellhead pack-off assembly. Make up BHA components. Install pack-off and pressure test against swab valve to 2500 psi iii. RIH with 3/8” capillary string to ±4800’ MD a. Set cap string as deep as practical in fluid iv. Install slips and connect tubing to chemical injection pump v. Set spool of remaining line near well vi. RD cap string Unit, and turn well over to production The B-23/B-31 proposed perfs are all within the same pool as the existing perfs as defined by CO 553. Thanks, Scott Warner Kenai – Operations Engineer Office: (907) 564-4506 Cell: (907) 830-8863 From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Sent: Monday, June 24, 2024 11:34 AM To: Scott Warner <Scott.Warner@hilcorp.com> Subject: [EXTERNAL] RE: HVA-08 (PTD 204-114) perf sundry Scott, In addition to the question below, can you confirm that the proposed perfs are in the same pool as the existing perfs? Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: McLellan, Bryan J (OGC) Sent: Monday, June 24, 2024 11:32 AM To: Scott Warner <Scott.Warner@hilcorp.com> Subject: HVA-08 (PTD 204-114) perf sundry Scott, There is discussion in the perf sundry application about setting a CIBP to shut off existing perfs, but the procedure does not include setting the plug. Was that an oversight? Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. DATE 3/28/2019 Debra Oudean GeoTech Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 F -mail: doudean@hilcorp.com To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL HVA-08_PT_07SEP18 11/13/20189:27 AM PDF document 3,376 K8 Happy Valley A-08 751 KB (PTD 11/13120189:27AM 204-114) 750 K8 2041 1=, 30 53 2 RECEIVE® APR 0 12019 AOGCC CD: HVA-08_PT_07SEP18 11/13/20189:27 AM PDF document 3,376 K8 HVA-08_PT 07SEP18 4900 11/13120189:27AM LAS File 751 KB . HVA-08_PT_07SEP18_5800 11/13120189:27AM LAS Fife 750 K8 HVA-08_PT07SEP186600 11/13/20199:27AM LAS Fife 767 KB . HVA-08_PT 07SEP18_69M 11/13/2018907AM LAS File 991 KB i HVA-08_PT 07SEP18J850 11/13/20139:27AM LAS File 786 KB HVA-08_P-r07SEP18_8200 11/13/20189:27AM LAS Fite 769 KB HVA-03_PT 07SEP18 8300 11/13/20189:27AM LAS Fife 695 KB �11iVA-0S_PT_07SEP18_img 11/13/20189:27 AM TIFF File 4,416 K6 HVA-@B_PT 07SEP18 MainPass 11/13/2018 9:27 AM LAS File 7,608 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 907 777.8510 i n U STATE OF A ALA OIL AND GAS CONSERVAT ON COMAION RECEIVED REPORT OF SUNDRY WELL OPERATIONS OCT 0 5 2017 1.Operations Abandon U Plug Perforations LI Fracture Stimulate U Pull Tubing LJshutdown U I Performed: Suspend ❑ Perforate ❑ Other Stimulate ❑ Alter Casing ❑ i�nnAroR�d Program ❑ i " 'C} Plug for Redrill ❑ srforate New Pool ❑ Repair Well ❑ Re-enter Susp Well ❑ Other: Pull Cap String ❑✓ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development 0 Exploratory ❑ 204-114 3.Address: 3800 Centerpoint Dr,Suite 1400 Anchorage, Stratigraphic Service ❑ 6.API Number: AK 99503 50-231-20023-00 7.Property Designation(Lease Number): 8.Well Name and Number: FEE-CIRI Happy Valley A-08 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A Deep Creek-HV Beluga/Tyonek Gas 11.Present Well Condition Summary: Total Depth measured 8,900 feet Plugs measured N/A feet true vertical 6,734 feet Junk measured 8,360(fill/fish) feet (cap string/inj valve) Effective Depth measured 8,407 feet Packer measured 4,021 feet true vertical 6,272 feet true vertical 2,543 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 111' 16" 111' 110' Surface 1,194' 9-5/8" 1,194' 1,130' 5,750psi 3,090psi Intermediate Production 4,168' 7" 4,168' 2,630' 7,240psi 5,410psi Liner 4,876' 3-1/2" 8,897' 6,731' Perforation depth Measured depth See Attached Schematic %MAR tJS)1Ft- 0 8 1)17, f �, True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) 3-1/2" 9.2#/L-80 4,055'MD 2,563'TVD Baker ZXP Liner Packers and SSSV(type,measured and true vertical depth) Top Pkr;N/A 4,020'MD 2,543'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 0 107 Subsequent to operation: 0 178 131 0 107 14.Attachments(required per 20 AAC 25.070,25.071,&25.283) 15.Well Class after work: Daily Report of Well Operations 0Exploratory0 Development Q Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16.Well Status after work: Oil ❑ Gas Q WDSPL❑ Printed and Electronic Fracture Stimulation Data ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: N/A Authorized Name: Chad Helgeson 777-8405 Contact Name: Ted Kramer Authorized Title: Operations Manager Contact Email: tkramer@hilcorp.com Authorized Signature: X%" - Date: 'o Contact Phone: 777-8420 Form 10-404 Revised 4/2017 Submit Original Only RDDIVIS ,(. OCT - 6 Z • Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date HVA-08 Cap String 50-231-20023-00 204-114 9/6/17 9/6/17 Daily Operations: 09/06/2017-Wednesday Meet Lead Operator at Susan Dionne Office. Hold a safety meeting with operations and fill out a Job Safety Analysis. Travel to Happy Valley A Pad. Rig up cap string injector head and associated equipment on HV#8. Pressure test. Pull 1,500#on cap string. The free pick-up weight shows 1,300# at 8,300'. At 5,680' see a 300#over pull as the bottom of the string makes its way through the patch. Finish pulling the cap string out of the well. The inspection of the string shows it to be cork screwed and the bottom 30' of the 1/4" string is missing along with the injection nozzle. Rig down the cap string truck and equipment and head back to the shop. wimArgiry'-''' -''' ''' ^"NSVF.1:4!::',:! liffrIMPOWIVIN, illiiiiii"Pliii H .,:vilipliii ,40,,„1,4 ,^•.„,..4,:..aiii; Ili iniVillav bhi` x � s Happy Valley HVA-08 � r x4 � k N� � � ��Ae1`Hior�AI•xka.LC �a � N�a� �^^" ,;;;N + Tree cxn-2-1/2"Bowen cxn RT-THF:23.9' I , Casing and Tubing Detail K. Size Type Wt/Grade Top Btm CONN/ID Cement/Other t+*+°r. t41 16" Structural 82.77#,K-55 Surface 111' ar 1 iiti ,.r" 9-5/8" BTC/ 67 bbl of 12.8 ppg lead and 31 bbl Surface 40#,L-80 Surface 1,194' -" 8.835" of 15.8 ppg tail"G" 16" a.( •� 7" Surface 26#,L-80 Surface 4,168' BTC-Mod/ 71 bbl of 12.8 ppg LiteCrete lead @111' .,d 6.184" and 15 bbl of 15.8 ppg"G"tail. 3-1/2" Liner 9.2#,L-80 4,021' 8 897' IBT Mod/ 145 bbl of 12.0 ppg Litecrete -5/8"@1,194' 2.992" Tubing IBT Mod/ Annulus loaded with fresh water 3-1/2" Production 9.2#,L80 Surface 4,055' 2.992" plus Baracor 100 corrosion inhibitor 2 . 11 103:24 3 Jewelry Detail 5 4 # Depth Length ID OD Item 6 7"@4,ts8' 1. 2,501' 7.40' 2.992" 5.25" Chemical injection sidepocket mandrel (Macco SFO-IC-I) with 1/4",0.049"wall SS chemical injection line 2. 4,020' 15.10' 4.276" 6.06" Baker ZXP packer B-31 3. 4,027' 1.19' 2.992" 5.0" Fluted Locator sub(L-80 IBT) 7 ] , 4. 4,036' 9.70' 4.408" 5.924" Flexlock liner hanger B-40 _ 8 3 IJ 5. 4,046' 16.98' 3.00" 3.99" Baker 80-40 seal assembly g ' 6-45 6. 4,056' 0.50' 3.00" 3.99" Muleshoe 7. 5,219' 40.32' 1.60" 2.72" 3-1/2"TTS Patch(DIL depths not corrected to RKB) 6-50 8. 5,280' 24.83' 1.60" 2.72" 3-1/2"TTS Patch(DIL depths not corrected to RKB) B-65 9. 5,681' 67.73' 1.60" 2.72" 3-1/2"TTS Patch(DIL depths not corrected to RKB) Perforation Data B-80 ZONE TOP BTM Shot Condition B-31 4,972' 4,988' 6 3/9/05 B-100 5,235' 5,244' 6 8/17/04,Isolated 3/10/09 B-40 5,254' 5,262' 6 8/17/04,Isolated 3/10/09 T-1 5,295' 5,304' 6 8/17/04,Isolated 3/10/09 5,694' 5,718' 6 8/26/04,Isolated 3/10/09 B-45 T-6 5,729' 5,749' 6 8/26/04,Isolated 3/10/09 6,073' 6,083' 6 8/17/04 T-6B 6,100' 6,110' 6 8/17/04 B-50 SL tagged fill/fish 6,116' 6,124' 6 8/17/04 (capstringw/inj T-7 6,128' 6,134' 6 8/17/04 valve)@ 8,360' 9/10/17 B-65 6,504' 6,518' 6 8/26/04 T-10 6,738' 6,748' 6 8/26/04 ' B-80 6,759' 6,765' 6 8/26/04 3.1/2"@8,900' ' .- 6,772' 6,782' 6 8/15/04 6,791' 6,801' 6 8/26/04 TD=8,900' PBTD=8,828' B-100 7,248' 7,262' 6 3/9/05 MAX HOLE ANGLE=65.9°@ 2,877' T-1 7,910' 7,930' 6 8/11/04 7,949' 7,959' 6 8/11/04 Max Doglegs=6.0 deg/100'at 4313' T-6 8,247' 8,277' 6 04 5.7 deg/100'at 1304' 8/11/ 8.0 deg/100'at 236' T-6B 8,336' 8,354' 6 3/9/05 T-7 8,393' 8,404' 6 8/11/04 NOTE: T-10 8,541' 8,581' 6 8/9/04 • Slickline had problem hanging up at 4056'when running square-shoulder tool(8/15&12/9/04). • Stimulation:Frac stimulated B-40 perfs(5235'-5304'gross)on 12/15/04 with 103,000 lbs of 20/40 sand in BJ Lightning-2000 gel. Updated by DMA 10-04-17 e e 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 Y. - 1 L 4:- Well History File Identifier Organizing (done) D Two-sided 111/111111111111111 D Rescan Needed 1111111111111111111 RESCAN DIGITAL DATA OVERSIZED (Scannable) D Maps: D Other Items Scannable by a Large Scanner D Color Items: D Greyscale Items: D Diskettes, No. D Other, NolType: D Poor Quality Originals: OVERSIZED (Non-Scannable) D Other: D Logs of various kinds: NOTES: D Other:: BY: ~ Date 9 F:w/n0 /s/ VVlP Project Proofing BY: ~ 11111111111I1111111 DateC¡ ¡ ~O /Ob ~ x30= qo Date~/?/)/Oh /s/ (1IJf Scanning Preparation BY: ~ + .~ ,5 = TOTAL PAGES II S (Count does not include cover sheet) V1Ap /s/ r 'I 111/111111111111111 Production Scanning Stage 1 Page Count from Scanned File: I 1 f.ø (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: BY: ~ Date: cr ¡3D/ob Stage 1 If NO in stage 1, page(s) discrepancies were found: ~YES NO /5/ f\t1 f YES NO BY: Maria Date: 1111111111111111111 Scanning is complete at this point unless rescanning is required. ReScanned 1111111111111111111 BY: Maria Date: 15/ Comments about this file: Quality Checked 11111111I11I1111111 10/6/2005 Well History File Cover Page.doc STATE OF ALASKA ALASKA* AND GAS CONSERVATION COMMISSS 1,.I6A REPORT OF SUNDRY WELL OPERATIONS 0l20 1. Operations Abandon U Repair Well 11 Plug Perforations U Stimulate LJ Other U Install Capillary String Performed: Alter Casing ❑ Pull Tubing ❑ Perforate New Pool ❑ Waiver ❑ Time Extension ❑ Change Approved Program ❑ Operat. Shutdown ❑ Perforate ❑ Re -enter Suspended Well ❑ 2. Operator Union Oil Company of California 4. Well Class Before Work: 5. Permit to Drill Number: Name: Development 0 Exploratory ❑ 204 -114 3. Address: PO Box 196247, Anchorage, AK 99519 Stratigraphic Service ❑ 6. API Number: 50- 231 - 20023 -00- 7. Property Designation (Lease Number): 8. Well Name and Number: C- 061590 [Happy Valley Facility] - Happy Valley A -08- 9. Field /Pool(s): Deep Creek Field / HV Beluga & Tyonek Gas Pool 10. Present Well Condition Summary: Total Depth measured 8,900 ' feet Plugs measured N/A feet true vertical 6,734 - feet Junk measured 8,407' (fill) feet Effective Depth measured 8,407' feet Packer measured 4,021 feet true vertical 6,272' feet true vertical 2,543 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 111' 16" 111' 110' Surface 1,194' 9 -5/8" 1,194' 1,130' 5,750psi 3,090psi Intermediate Production 4,168' 7" 4,168' 2,630' 7,240psi 5,410psi Liner 4,876' 3 -1/2" 8,897' 6,731' Perforation depth , Measured depth 8,541' - 8,581', 8,393' - 8,404', 8,336-8,354', 8,247-8,277', 7,949'- 7,959', 7,910'- 7,930', 7,248'- 7,262', 6,791' - 6,801', 6,772'- 6,782', 6,759'- 6,765', 6,738'- 6,748', 6,504' - 6,518', 6,128' - 6,134', 6,116-6,124', 6,100'- 6,110', 6,073' - 6,083', 4,972'- 4,988' True Vertical depth 6,397' - 6,434', 6,259'- 6,270', 6,206'- 6,223', 6,124' - 6,153', 5,849' - 5,858', 5,813' - 5,831', 5,219' - 5,231', 4,819' - 4,827', 4,802'- 4,811', 4,791'- 4,796', 4,773'- 4,782', 4,571'- 4,583', 4,249'- 4,254', 4,239'- 4,245', 4,225'- 4,233', 4,201'- 4,210', 3,251'- 3,264' Tubing (size, grade, measured and true vertical depth) 3 -1/2" 9.2# L -80 4,055' MD 2,563' TVD Packers and SSSV (type, measured and true vertical depth) Baker ZXP liner top Packer / N/A 4,020' MD 2,543' TVD 11. Stimulation or cement squeeze summary: CE1 Intervals treated SCANNED N D B AR q Mil Z011 Treatment descriptions including volumes used and final pressure: N/A �• �j 12. Representative Daily Average Produ fio �Dala g¢ Oil -Bbl Gas -Mcf Water -Bbl Casing Pf$'gs 6.k, Tubing Pressure Prior to well operation: 0 400 2 Opsi 265psi Subsequent to operation: 0 450 2 Opsi 265psi 13. Attachments: 14. Well Class after work: Copies of Logs and Surveys Run N/A Exploratory❑ Development IS Service ❑ Stratigraphic ❑ Daily Report of Well Operations X 15. Well Status after work: Oil ❑ Gas IN WDSPL ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSF ❑ 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: N/A Contact Chris Kanyer 263 -7831 Printed Name Timothy C. Brandenburg Title Drilling Manager Signature f v l Phone 276 -7600 Date 2/21/2011 Form 10-404 Revised 10/2010 ReDms MAR 01 nu ( Submit Original Only Chevron • • %00 Chevron - Alaska Daily Operations Summary Well Name Legal Well Name Lease Surface UWI ChevNo Original RKB (ft) Water Depth (ft) HV -A08 HAPPY VALLEY A -8 C- 061590 5023120023 HP8847 738.50 Primary Job Type Job Category Objective Actual Start Date Actual End Date Artificial Lift Revision Well Run Capstring 1/18/2011 Services Primary Wellbore Affected Wellbore UWI Well Permit Number HV -A08 502312002300 1204114 1/1812011.00 :00 - 1/1912011 00:00 4 444 Operations Summary RU slickline, pressure test lubricator 250psi low /2500psi high. RIH and tag fill w/ 1.50" GR at 8,407' SLM. 910( X001`` 00:00 Operations Summary Production unloaded well with soapsticks. RIH with flowing pressure temperature survey to 8,400' SLM. RD slickline. Turn well over to production. 2/1j201100:00 b�,212/2011 00:00. . Operations Summary MIRU Dyna Coil Unit. Stab 1/4" .079# SS capillary line into dual barrier pack -off. Make up BHA components. Install pack -off and pressure test same against swab valve 250psi low /3,000psi high. RIH with 1/4" capillary string and tag fill at 8,382' (8,407'SLM), pulled up hole to 8,375' and install slips on capillary line. Install capillary line master valve, spooled excess line next to well, & installed chemical injection pump. RD Dyna Coil Unit. Turn well over to production. ' evro ~ Happy Valley Happy Valley HVA -08 Well HVA -08 �,/ Last Completed 4/21/05 Tree cxn - 2 -1/2" Bowen cxn RT -mF: zas ' r Casing and Tubing Detail Size Type Wt/ Grade Top Btm CONN /ID Cement/Other 16" Structural 82.77 #, K -55 Surface 111' ,' I ) 1 BTC/ 67 bbl of 12.8 ppg lead and 31 1 j L 9 -5/8" Surface 40 #, L -80 Surface 1,194' 8.835" bbl of 15.8 ppg tail "G" 16" 71 bbl of 12.8 ppg LiteCrete 111 7" Surface 26 #, L -80 Surface 4,168' BTC -Mod/ lead and 15 bbl of 15.8 ppg 4 6.184" "G" tail. -5/8" @1,194' IBT -Mod/ 3 -1/2" Liner 9.2 #, L -80 4,021' 8,897' 2.992" 145 bbl of 12.0 ppg Litecrete Tubing IBT Mod/ Annulus loaded with fresh 3 -1/2" Production 9.2 #, L80 Surface 4,055' water water plus Baracor 100 2 - 3 2 corrosion inhibitor 5 a 1/4" Capillary 0.79 #, 2205 Duplex SS capillary string run to 8,400' SLM (8,375' Dyna Coil Measurement) G ' Jewelry Detail 6 7" @4,168' # Depth Length ID OD Item 1. 2,501' 7.40' 2.992" 5.25" Chemical injection sidepocket mandrel (Macco SF0-1C -I) with 1/4 ", 0.049" wall SS chemical injection line 8-31 2. 4,020' 15.10' 4.276" 6.06" Baker ZXP packer 7 13 EV 1 3. 4,027' 1.19' 2.992" 5.0" Fluted Locator sub (L -80 IBT) 8 ] &40 4. 4,036' 9.70' 4.408" 5.924" Flexlock liner hanger 9 1 [ - B-4s 5. 4,046' 16.98' 3.00" 3.99" Baker 80-40 seal assembly 6. 4,056' 0.50' 3.00" 3.99" Muleshoe _ 8-50 7. 5,219' 40.32' 1.60" 2.72" 3 -1/2" TTS Patch (DIL depths not corrected to RKB) 8-65 8. 5,280' 24.83' 1.60" 2.72" 3 -1/2" TTS Patch (DIL depths not corrected to RKB) B-80 9. 5,681' 67.73' 1.60" 2.72" 3 -1/2" TTS Patch (DIL depths not corrected to RKB) Perforation Data ZONE TOP BTM Shot Condition aloo B -31 4,972' 4,988' 6 3/9/05 5,235' 5,244' 6 8/17/04, Isolated 3/10/09 T-1 B -40 5,254' 5,262' 6 8/17/04, Isolated 3/10/09 5,295' 5,304' 6 8/17/04, Isolated 3/10/09 T -6 B -45 5,694' 5,718' 6 8/26/04, Isolated 3/10/09 5,729' 5,749' 6 8/26/04, Isolated 3/10/09 T -6B 6,073' 6,083' 6 8/17/04 slicldine B -50 6,100' 6,110' 6 8/17/04 send at 8407 T -7 6,116' 6,124' 6 8/17/04 (1/18!11) 6,128' 6,134' 6 8/17/04 T -10 B -65 6,504' 6,518' 6 8/26/04 6,738' 6,748' 6 8/26/04 3-1/2" @ 8,900' I . I ` .1 B -80 6,759' 6,765' 6 8/26/04 6,772' 6,782' 6 8/15/04 6,791' 6,801' 6 8/26/04 TD = 8,900' PBTD = 8,823' B -100 7,248' 7,262' 6 3/9/05 MAX HOLE ANGLE = 65.9 @ 2877' 7,910' 7,930' 6 8/11/04 T-1 7 949' 7,959' 6 8/11/04 Max Doglegs = 6.0 deg/100' at 4313' 5.7 deg /100' at 1304' T -6 8,247' 8,277' 6 8/11/04 8.0 deg/100' at 236' T -6B 8,336' 8,354' 6 3/9/05 T -7 8,393' 8,404' 6 8/11/04 NOTE: T -10 8,541' 8,581' 6 8/9/04 • Slickline had problem hanging up at 4056' when running square- shoulder tool (8/15 & 12/9/04). • Stimulation: Frac stimulated B -40 perfs (5235' - 5304' gross) on 12/15/04 with 103,000 lbs of 20/40 sand in BJ Lightning -2000 gel. HVA -08 Actual Well Schematic 2- 21- 11.doc Updated by CVK 2 -21 -11 STATE OF ALASKA ~~~® ALA OIL AND GAS CONSERVATION COMM~Q~1~~ ~ ZQa~ REPORT OF SUNDRY WELL OPERATIONS ~~~s~t~ i4 ~~ ~'as C~s~~. Cofrtmission 1. Operations Abandon Repair Well Plug Perforations Stimulate ~ftC OCe1~er ~ -Install tubing patches Performed: Alter Casing ^ Pull Tubing^ Perforate New Pool ^ Waiver ^ Time Extension ^ Change Approved Program ^ Operat. Shutdown^ Perforate ^ Re-enter Suspended Well ^ 2. Operator Union Oil Company of California 4. Well Class Before Work: 5. Permit to Drill Number: Name: Development 0- Exploratory^ 204-114 ' 3. Address: P.O. Box 196247, Anchorage, AK 99519 Stratigraphic^ Service^ 6. API Number: 50-231-20023-00- 7. KB Elevation (ft): 9. Well Name and Number: 23.9' Happy Valley A-08 _ 8. Property Designation: 10. Field/Pool(s): C-061590 [Happy Valley Facility] Deep Creek / HV Beluga & Tyonek Gas 11. Present Well Condition Summary: Total Depth measured 8,900 - feet Plugs (measured) N/A true vertical 6,734 - feet Junk (measured) 8,530' (fill) Effective Depth measured 8,530 feet true vertical 6,387 feet Casing Length Size MD ND Burst Collapse Structural Conductor 111' 16" 111' 110' Surface 1,194' 9-5/8" 1,194' 1,130' 5,750 psi 3,090 psi Intermediate Production 4,168' 7" 4,168' 2,630' 7,240 psi 5,410 psi Liner 4,876' 3-1/2" 8,897' 6,731' Perforation depth: Measured depth: See Attached Schematic _ ~,y}~~ p~ p~ E~ ~~~C' True Vertical depth: See Attached Schematic Tubing: (size, grade, and measured depth) 3-1/2" 9.2# L-80 4,055' Packers and SSSV (type and measured depth) Baker ZXP liner top packer / N/A 4,021' / N/A 12. Stimulation or cement squeeze summary: N/A Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 729 34 bbl 0 psi 300 psi Subsequent to operation: 0 729 1 bbl 0 psi 300 psi 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run N/A Exploratory^ Development ^~ Service ^ Daily Report of Well Operations X 16. Well Status after work: Oil ^ Gas ~~ WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or NIA if C.O. Exempt: 308-291 Contact Marcus Barbee 263-7605 Printed Name Timothy C. Brandenburg Title Drilling Manager e... C Signature Phone 276-7600 Date 3/17/2009 Form 10-404 Revised 04/2006 ,.-' ~.. !~A[t 4 ~ ~~~t;• Submit Original Only ~Ch Chevron -Alaska ~ Daily Operations Summary Well Name Legal Well Name Lease Surface UWI ChevNo Original RKB (ft) Water Depth (ft) HV-A08 HAPPY VALLEY A-8 C-061590 5023120023 HP8847 738.50 Jobe Primary Job Type Job Category Objective Actual Start Date Actual End Date Water Shut-Off Well 10/27/2008 3/10/2009 Services Primary Wellbore Affected Wellbore UWI Well Permit Number HV-A08 5023120023-00 1204114 D it O erations - - i---- __ :10/2712008 00:00 -10/28!200$ 00:00 _ _ Operations Summary Rigged up on HV-A08, Function test wireline valves and PT to 250 low and 2500 high, make up tool string w/ 2.8" GR. Stab on well w/ lubricator and PT to 250 low and 2500 hi h. Run GR to 8352' RKB (slm) tag up. POOH and make up 2 1/4" DD bailer RIH to 8233' RKB work tool through to 8274' RKB and fell to 8530' RKB (slm) and work tool POOH w/ full Bailer. Very raft from 8374' RKB to 8240' RKB. SDFN 10128!2008 00:00 -10/2912008 00:00 ~'-G,- /'r-~ _g __ ~ _ ___ Operations Summary RU Slickline PT 250psi low/ 2500psi high Turn gauge ring to 2.78" run in hole work through troubled area from 8333' to 8424' RKB (slm) tag up and POOH. Gauge ring shows scars on bottom and top around bypass. RD slickline. 10129/2008 00:00 -10/3012008 00:00 _ _ Operations Summary Worked on plan forward, and confirming E-line crew and unit. 10/30/2008 00:00 - 1.0/31 /2008 00:00 . Operations Summary Worked on forward plans _ -- 11/9/2008 00:00 - 11110/2008 00:00 _ __ _ - - _ _ Operations Summary Rigge dup Pollard slickline, PT 250psi low/ 2500psi high, and ran static Press/ Temp survey.RD Slickline. _ 11/10/2008 00:00 - 11/11/2008 00:00 _ __ __ _ __ ___ - - _ ___ _ _ Operations Summary Rigged up E line, pressure tested 250psi low/2500psi high, and unable to set plug due to ice plug in tree cap. SDFN. _ __ 11/11/2008 00:00 - 11/12/2008 00:00 ~ ---- - ._ __ __- - Operations Summary RU Eline, PT 250psi low/ 2500psi high. WRP hung up in B-31 perfs (4,972'-4,988') and became stuck after working tools for several hours plug was set at 4981' WLM. RD Eline. _ __ _ _ - 11/1312008 00:00 - 11 /14/2008 00:00 Operations Summary __ _ _ _ _ __--- __ _..__ RU slickline, PT 250psi low/ 2500psi high, pulled WRP from B-31 perfs and drifted tubing with 2.7"x 3.9' dummy Plug to 7,700' SLM, Changed out Swab valve. RD Slickline. 11/14/2008 00:00 - 11/15/2008 00 00 __ _ _ Operations Summary Rig up Schlumberger, PT 250psi low/ 2500psi high, and set Weatherford Special clearance WRP at 7500' Tubing Measurement. RD Eline. 11/2112008 00:00 - 11/22/2008 OOAO Operations Summary Mobilized Containment and coil from HV-A02 to HV-A08 and PT BOP's 300psi low/ 4,000psi high (AOGCC noitified 24 Hrs in advance and waived witness by Jim Regg) 11/22/2008 00:00 - 11/23/2008 00:00 -- _ _ _ _ - - Operations Summary Blow well down with Coil tubing and pressure up well for PL log. 9.1/23/2008 00:00 - 11/24/2008 00.00 _ -- _ _ Operations Summary - Pressured well w! coil and N2, Rigged up E-Line, PT 250psi low/ 2500psi high, and logged PL tools to detect water entry in beluga sands RD Eline. --_ -- -- 11l24/2008 00:00 - 11/25/2008 00:00 Operations Summary Schlumberger working with logs and distribution, Monitoring well, acts like loading up. 11/2512008 00:00 -1.112612008 00:00 Operations Summary Suspended operations for engineering. 11/26/2008 00:0 -11127/2008 00:00 _ _ Operations Summary Pick up Pit liner and felt, Move snow berms and return site to pre operations condition, Suppliers picking up their equipment. 12/7/2008 00:00 -121812008.00:00 _ _ _ _ __ Operations Summary RU Eline, PT 250psi low/ 2500psi high, set WRP at 6165' to Isolate B-65 sand. RD Eline. Flow well to unload fluid. __ _ 121s/2oo8 oa• d'-.a21si2oo8 00:00 __ Operations Summary Attempt to unload well. - __ _ __ 12/s/2008 00:00 -12!1012008 00:00 __.- - -__ -._ _-__._-_______ -___ T Operaticns Summary Unloading/flowing well. Chevron Chevron -Alaska Daily Operations Summary Well Name Legal Well Name HV-A08 HAPPY VALLEY A-8 Lease Surface UWI C-061590 5023120023 ChevNo HP8847 Original RKB (ft) 738.50 Water Depth (ft) __ -- - ----- Daily Qperations _ _ :12/10/2008 00:00 -_ 12/11.12008 00:00 _ _ Operations Summary Flow well at 70 PSI unloading and RU Eline, PT 250psi low/ 2500psi high, & Log production w/ logging tools. ---- 12/11/2008 00:00 - 12/12/2008 00:00 _ _ _ _ ___ _ _ Operations Summary _ Finish Schlumberger PL logging, Rig down Eline and send DATA to town. -- - 1/3/2009 00:00 - 1/4/2009 00:00 _ _ Operations Summary Rig up Pollard slickline, PT 250psi low/ 2500psi high, & run in well w/ Pump bailer and sit down on plug at 6258' (?)Some issue with depth counter. (Coefficiants) bailed full bailer o -- --_-- ----- 1/412009 00't00 -115/2009 00:00' ' _ _ _ _ _ Operations Summary RU slickline, PT 250psi low/ 2500psi high. Bailed sand off of WRP at 6,165' & POOH with same. Bailed sand off of WRP at 7,500' & pulled same. Ran Dummy Patch through Beluga Sands to 7,350' RKB SLM. 115/2009 OOc00 - 1/6/2009 00:00 _ _ _ _ __ _ _ _ _ Operations Summary Demobe, turn well to production 3/8/2009 00:00 - 3/9/2009 00:00 _ _ ___ _ _ _ _ ___ _ -- _ _- Operations Summary RU slickline, PT 250psi low/ 2500psi high, & run 2.78" x 11.25' dummy drift for isolation packers to 6000'. No problems tools drifted slick. RD slickline. -------- 3/9/2009 00:00 - 3/10/2009 OOAO - - _ - -_ __ Operations Summary R/U Expro a-line & PT 250psi low/ 2500psi high to run isolation packers and base pipe to shut off water in the 640 (wooer & lower) and B45 sands. Set lower patch assembly from 5,745' - 5,684' and set bottom packer for middle patch asembly @ 5,300.5' / SDFN 3110!2009.00:00 - 3111/2009 00:00 _ _ __ _ _ - -- --- Operations Summary Day 2 of setting TTS isolation packers w/ Expro a-line. PT 250psi low/ 2500psi high. Completed middle patch by stinging into the packer set ~ 5.300.5' and set the top packer r~ 5,280', patching middle zone (lower B-40 sand) from 5.300.5' to 5,280'. Set upper patch assembly over upper B-40 sand from 5,255' - 5,219'. hevro Happy Valley ~- ~~~a Happy Valley HVA-08 Well HVA-08 ``~... ax~~ _ ~ Last Completed 4/21/05 ~~~ i~;' Tree txn - 2-t/r' eov~en cxn t ttr' ~ttr . L 2 3 s a s r' @a,tss gat 7 gao a g 8-45 g50 BfiS e-so gt o0 r-t Size Type Wt/ Grade Top Btm CONN/ID Cement/Other 16" Structural 82.77#, K-55 Surface 111' 9-5/8" Surface 40#, L-80 Surface 1,194' BTC/ 8.835" 67 bbl of 12.8 ppg lead and 31 bbl of 15.8 tail "G" 7" Surface 26#, L-80 Surface 4,168' BTC-Mod/ 6.184" 71 bbl of 12.8 ppg LiteCrete lead and 15 bbl of 15.8 ppg "G" tail. 3-1/2" Liner 9.2#, L-80 4,021' 8,897' IBT-Mod/ 2.992" 145 bbl of 12.0 ppg Litecrete Tubing 3-1/2" Production 9.2#, L80 Surface 4,055' IBT-Mod/ 2 992„ Annulus loaded with fresh water plus Baracor 100 corrosion inhibitor Jewelry Detail # Depth Length ID OD Item 1. 2,501' 7.40' 2.992" 5.25" Chemical injection sidepocket mandrel (Macco SFt~1C-I) with 1/4", 0.049" wall SS chemical injection line 2. 4,020' 15.10' 4.276" 6.06" Baker ZXP packer 3. 4,027' 1. l9' 2.992" 5.0" Fluted Locator sub (L-80 [BT) 4. 4,036' 9.70' 4.408" 5.924" Flexlock liner hanger 5. 4,046' 16.98' 3.00" 3.99" Baker 80-40 seal assembly 6. 4,056' 0.50' 3.00" 3.99" Muleshoe 7. 5,219' 40.32' L60" 2.72" 3-1/2" TTS Patch (DIL depths not corrected to RKB) 8. 5,280' 24.83' 1.60" 2.72" 3-1/2" TTS Patch (D[L depths not corrected to RKB) 9. 5,681' 67.73' 1.60" 2.72" 3-1/2" TTS Patch (DIL depths not corrected to RKB) Perfora tion Data ZONE TOP BTM Shot Condition B-31 4,972' 4,988' 6 3!9/05 5,235' 5,244' 6 8/17/04, Isolated 3/10/09 B-40 5,254' 5,262' 6 8/17/04, Isolated 3/10/09 5,295' 5,304' 6 8/17/04, Isolated 3/10/09 5,694' 5,718' 6 8/26/04, Isolated 3/10/09 B-45 5,729' 5,749' 6 8/26/04, Isolated 3/10/09 6,073' 6,083' 6 8/17!04 6,100' 6,110' 6 8/17/04 B-50 6,116' 6,124' 6 8/17/04 6,128' 6,134' 6 8/17/04 B-65 6,504' 6,518' 6 8/26/04 6,738' 6,748' 6 8/26/04 B 6,759' 6,765' 6 8/26/04 80 6,772' 6,782' 6 8/15/04 6,791' 6,801' 6 8/26/04 B-100 7,248' 7,262' 6 3/9/05 7,910' 7,930' 6 8/11/04 T-1 7,949' 7,959' 6 8/11/04 T-6 8,247' 8,277' 6 8/11/04 T-66 8,336' 8,354' 6 3/9/05 T-7 8,393' 8,404' 6 8/11/04 T-10 8,541' 8,581' 6 8/9/04 r-s r-se T-7 T-10 SWdcinetagged sand at 8,530' 3-vr'~s,9oo' ho/zrtoel TD =8,900' PBTD = 8,828' MAX HOLE ANGLE = 65.9" @2,877' Max Doglegs = 6.0 deg/100' at 4313' 5.7 deg/100' at 1304' 8.0 deg/100' at 23s' VOTE: ^ Slickline had problem hanging up at 4056' when running square-shoulder tool (8/15 & 12/9/04). Stimulation: Frac stimulated B-40 perfs (5235' - 5304' gross) on 12/15/04 with 103,000 lbs of 20/40 sand in BJ Lightning-2000 gel. HVA-08 Actual Well Schematic 3-17-09.doc Undated by CVK 3-17-09 • • Page 1 of 1 Maunder, Thomas E (®OA) From: Maunder, Thomas E (DOA) Sent: Wednesday, January 28, 2009 10:28 AM To: 'Walsh, Chantal [Petrotechnical]' Cc: Kanyer, Christopher V Subject: RE: Sundry 308-291 for HV A 8 (204 114) Chantal, et al, Although the specific zones you plan to isolate have changed, the overall intent of the sundry is still the same. It is not. necessary to submit new paperwork here. I will place a copy of your documents and this message in the file. Good luck eliminating the water. Call or message with any questions. Tom Maunder, PE AOGCC From: Walsh, Chantal [Petrotechnical] [mailto:WalshC@chevron.com] Sent: Wednesday, January 28, 2009 10:18 AM To: Maunder, Thomas E (DOA) Cc: Kanyer, Christopher V Subject: Sundry 308-291 for HV A 8 (204 114) Tom, We filed a sundry for HV A-8 (permit to drill #204-114), sundry # 308-291. We did the work to run production logs, blew the well down and production tested different intervals. From these tests we ascertained our water flow was from a different interval than we suspected. In our sundry we planned to isolate the T-6 and the T-7 sands, we now intend to isolate the B-45 and the lower B-40 sands and a contingency to isolate the upper B-40 sands. How do you want me to proceed? I've attached the current and planned schematic and a description of the change. Do you want me to close out the current 403 and reopen a new 403? Amend the existing 403? Thanks, Chantal Chantal Walsh PRA Petroleum Engineer, P.E. walshc chevroncom Anchorage, AK Chevron North America Exploration and Production Midcontinent/Alaska SBU 909 W. 9th Avenue Anchorage, AK 99501-3322 Tel 907 263 7627 Fax 1 907 263 7884 Mobile 907 227 0952 ~~~ JAS ~ ~ ?~C Mail Confidential Footer Privileged/Confidential information may be contained in, or attached to, this message. If you are not the addressee indicated in this message (or responsible for delivery of the message to such person), you may not copy, forward, disclose, deliver, or otherwise use this message or any part of it in any form whatsoever. If you receive the message in error, you should destroy this message after notifying me immediately by replying to the message or contacting me at (907) 263-7892. 1 /28/2009 Chevron • ~ Happy Valley Well #HVA-08 1/27{09 OBJECTIVE: • Isolate B-45 and B-40 sands with tubing patches. PROCEDURE SUMMARY: } 1„rTD TT el• 1• DTU / !`D « F'll T.r,.«e fl,,;.l le.,ot Dr u .,.,.1 ,. o «h., ~ « amD .. t,,.. «,. o~nn ~ >, iTTD TT >r l' DT T7I.TTT [x7T?D Dl,... DTU ~e« ~ o rl 1/ 7GI ll1~ D(1llu Dll El:.,o ~ 3 . 4 T:1.., ,. «e..« .,,on c « ~ n 1,,.,,,.~ TATD naz TT C1 1 DTU.:,/ Dre /T T cv-vriciiz " ~;:"m"~°rrva:p--r 1 i«h 11 wz ii xcc: ~ivcx x fl «~'7Aw~ D~_oollii.Ti DW xv rr"m^.~ i~au .7 FF \xID D D Tx7 / l i v i D D ~ ° :': « ~l T µ«..T. /vol~~o .P. Dl111x7 . ../ Tx7TJ D xr r -R vr-- vcsr c~x a . .. . b ~ .. .....,..... ........ .~.~ . . .. _4 AdT / C....« 1 3/. ~~ !`T7T «.,..Lc. o,..l ., ., ~0%R _o _.o Y_v_f'T ~~«~r. 8 D i T !`TT T ATT T T2llDL' Te..« ~µ ~_ L':11 ~µ« A ..,.e„«.,,...e !`l. e..Ll;~« f~: , ,~ D IlRlo,.,..L.e !`TT T . Change of Program: From results of pressure temp logs and production testing, plan to isolate T-6 & T-7 has been changed to isolate the B-45, lower B-40, & contingency of upper B-40 sands. I MIRU Eline. Pressure test lubricator. 2 PUMU TTS Tbg Patch. RIH set same to isolate B-45 Sand (5,694'-5,749'). 3 PUMU TTS Tbg Patch. RIH set same to isolate lower B-40 Sand (5,295'- 5,304'). 4 Flow test well for 24 hours Contingency: A PUMU TTS Tbg Patch. RIH set same to isolate upper B-40 Sand (5,235'- 5,262'). 5 RD & Demobe equipment. Turn well over to production. HVA-08 REVISED BY: CVK 1-27-09 ~~' ~ 11 ~~„ Hippy Valley H~A-08 TD =8,900' PBTD = 8,828' MAX HOLE ANGLE = 85.9° @2,877' Happy Valley. well Hva-aa Las: Completed 41211x5 Casing and Tubing Detail Size Type WU Grade Top Btm CONN/ID CementlOther 16" Structural 82.77#, K-55 Surface 111' 9-5/8" Surface 40#, L-80 Surface 1,194' BTC/ 8.835" 67 bbl of 12.8 ppg lead and 31 bbl of 15.8 tail "G" 7" Surface 26#, L-80 Surface 4,168' BTC-Mod/ 6.184" 71 bbl of 12.8 ppg LiteCrete lead and 15 bbl of 15.8 ppg "G" tail. 3-1/2" Liner 9.2#, L-80 4,021' 8,897' IBT-Mod/ 2.992" 145 bbl of 12.0 ppg Litecrete Tubing 3-1/2" Production 9.2#, L80 Surface 4,055' IBT-Mod/ 2.992" Annulus loaded with fresh water plus Baracor 100 corrosion inhibitor Jewelry Detail # Depth Length ID OD Item 1. 2,501' 7.40' 2.992" 5.25" Chemical injection sidepocket mandrel (Macco SFO-IC-p with 1/4", 0.049" wall SS chemical injection line 2. 4,020' 15.10' 4.276" 6.06" Baker ZXP packer 3. 4,027' L 19' 2.992" 5.0" Fluted Locator sub (L-80 [BT) 4. 4,036' 9.70' 4.408" 5.924" Flexlock liner hanger 5. 4,046' 16.98' 3.00" 3.99" Baker 80-40 seal assembly 6. 4,056' 0.50' 3.00" 3.99" Muleshoe Perforat ion Data ZONE TOP BTM Shot Condition B-31 4,972' 4,988' 6 3/9/05 5,235' 5,244' 6 8117/04 B-40 5,254' 5,262' 6 8/17/04 5,295' 5,304' 6 8/17/04 5,694' 5,718' 6 8/26/04 B-45 5,729' 5,749' 6 8/26/04 6,073' 6,083' 6 8/17/04 6,100' 6,110' 6 8/17/04 B-50 6,116' 6,124' 6 8/17/04 6,128' 6,134' 6 8/17/04 B-65 6,504' 6,518' 6 8/26/04 6,738' 6,748' 6 8/26/04 6,759" 6,765' 6 8/26/04 B 80 6,772' 6,782' 6 8/15/04 6,791' 6,801' 6 8/26/04 B-100 7,248' 7,262' 6 3/9/05 7'910' 7,930' 6 8/11/04 T-1 7,949' 7,959' 6 8/11/04 T-6 8,247' 8,277' 6 8/11/04 T-66 8,336' 8,354' 6 3/9/05 T-7 8,393' 8,404' 6 8/11/04 T-10 8,541' 8,581' 6 8/9/04 Max Doglegs = 6.0 deg/100' at 4313' 10TE: 5.7 deg/100' at 1304' Slickline had problem hanging up at 4056' when running square-shoulder tool (8/15 & 12/9/04). 8.0 deg/100' at 236' Stimulation: Frac stimulated B-40 perfs (5235' - 5304' gross) on 12/15/04 with 103,000 Ibs of 20/40 sand in BJ Lightning-2000 gel. HVA-08 Actual Well Schematic 8-14-08 doc Undated by CVK Treeacn-2-1/7' eowenc~m ar-TIiF: a.9' -~--- -- Happy Valley HVA-08 We IpHVA~08 ~~r®~~SCt~ Last Completed 4/21/05 tfi saw TD =8,900' PBTD = 8,828' MAX HOLE ANGLE = 65.9° @2,877' Max Doglegs = 6.0 deg/100' at 4313' 5.7 deg/100' at 1304' 8.0 degI100' at 235 Casing and Tubing Detail Size Type Wt/ Grade Top Btm CONN/ID Cement/Other 16" Structural 82.77#, K-55 Surface 111' ' BTC/ 67 bbl of 12.8 ppg lead and 31 9-5/8" Surface 40#, L-80 Surface 1,194 8.835" bbl of 15.8 tail "G" _ 71 bbl of 12.8 ppg LiteCrete 7" Surface 26#, L-80 Surface 4,168' BTC-Mod/ 184" 6 lead and 15 bbl of 15.8 ppg . "G" tail. 3-1/2" Liner 9.2#, L-80 4,02'1' 8,897' IBT-Mod/ 2.992" 145 bbl of 12.0 ppg Litecrete Tubing 3-1/2" Production 9.2#, L80 Surface 4,055' IBT-Mod/ Annulus loaded with fresh 2.992" water plus Baracor 100 corrosion inhibitor Jewelry Detail # Depth Length ID OD Item I. 2,501' 7.40' 2.992" 5.25" Chemical injection sidepocket mandrel (Macco SFO-1C-1) with 1/4", 0.049" wall SS chemical injection line 2. 4,020' 15.10' 4.276" 6.06" Baker ZXP packer 3. 4,027' L 19' 2.992" 5.0" Fluted Locator sub (L-80 IBT) 4. 4,036' 9.70' 4.408" 5.924" Flexlock liner hanger 5. 4,046' ~ 16.98' 3.00" 3.99" Baker 80-40 seal assembly 6. 4,056' 0.50' 3.00" 3.99" Muleshoe Perforat ion Data ZONE TOP BTM Shot Condition B-31 4,972' 4,988' 6 3/9/05 5,235' 5,244' 6 8/17/04 Contin enc -Isolate B-40 5,254' 5,262' 6 8/17/04 Contin enc -Isolate 5,295' 5,304' 6 8/17/041solate 5,694' 5,718' 6 8/26/041solate B-45 5,729' 5,749' 6 8/26/041solate 6,073' 6,083' 6 8/17/04 6,100' 6,110' 6 8/17/04 B-50 6,116' 6,124' 6 8/17/04 6,128' 6,134' 6 8/17/04 B-65 6,504' 6,518' 6 8/26!04 6,738' 6,748' 6 8/26/04 6,759' 6,765' 6 8/26!04 B 80 6,772' 6,782' 6 8/15/04 6,791' 6,801' 6 8/26/04 B-100 7,248' 7,262' 6 3/9/05 7,910' 7,930' 6 8/11/04 T-1 7,949' 7,959' 6 8/11/04 T-6 8,247' 8,277' 6 8/11/04 T-6B 8,336' 8,354' 6 3/9/05 T-7 8,393' 8,404' 6 8/11/04 T-10 8,541' 8,581' 6 8/9/04 (\07'F.: • Slickline had problem hanging up at 4056' when running squaze-shoulder tool (8/15 & 12/9/04). • Stimulation: Frac stimulated B-40 perfs (5235' - 5304' gross) on 12/15/04 with 103,000 lbs of 20/40 sand in BJ Lightning-2000 gel. HVA-08 Proposed Well Schematic 1-27-09 doc Updated by CVK Tree cxn - 2-117' Bowen cam ar-THF: aa.s' chevron nCiSCO Castro Chevron North America Exploration and Production ' Technical Assistant 3800 Centerpoint Dr. Suite 100 Anchorage, AK 99503 Tele: 907 263 7844 Fax: 907 263 7828 E-mail: fcbn@chevron.com DATE ]anuary 13, 2009 To: AOGCC Mahnken, Christine R 333 W. 7th Ave. Ste# 100 Anchorage, AK 99501 ~ ~ ~ ~ ~ ~ C, t E ~. t i t r, i ~: ~ ~~ - ~ ~ ~I - - WELL LOG TYPE Si;ALE LOG DATE ~ RUN +~ INTERVAL NOTES-LAS, PDS, 6-LINE ~ CD ~ i LOGGED i DLIS i -- - - 1 - - - - _ _ - ' - CEMENT MAPPING TOOL ~~ SRU 312-09 SCMT-GR 5" 1-Nov-O8 1 1 1 3650-6000 PDS, DLIS - ~'; t ,~=-h~ ~ TBU M-32RD RST -SIGMA 5" 26-Nov-08 1 1 1 50-9300 DLIS, PDS ..j `~..~ TBU M-32RD RST -SIGMA TVD 5" 25-Nov-08 1 1 1 50-9300 LAS, DLIS, PDS -.{r~ { } ~~~ ~~ HV B-13 RST - GR -CCL 5" 12-Nov-08 1 1 1 3600-7685 LAS, DLIS, PDS __~ i J~j ~ ~''~ ~ HV B-12 RST - GR -CCL 5" 12-Nov-08 1 1 1 3700-10313 LAS, DLIS, PDS ~ ~`i HV A-8 PLUG SETTING RECORD 5" 7-Dec-08 1 1 1 6077-6301 DLIS, PDS L~j`L , ~~ ~ , HV A-8 PSP -WATER ENTRY 5" 10-Dec-OS 1 1 1 4836-6160 LAS, DLIS, PDS I ~~ ~ HV A-8 PSP -DEFT 5" 22-Nov-08 1 1 1 4900-7300 PDS, DLIS .`3 i~~'-1 ~ IRU 13-31 USIT 5" 2-Dec-08 1 1 1 50-6250 LAS, DLIS, PDS 4`~~ IRU 13-31 PRESSURE TEMPERATURE 5" 10-Dec-08 1 1 1 100-6192 LAS, DLIS, PDS Please acknowledge receipt by signing and returning one copy of this#tranSrritt'~R A 07 263 7828. ;` ~, Received~~ -_ Date: ~"" y~ t9 ~a J l'.~_~ I 1 !i /i _ a ~ > 7 • yI ~ (1.~ 3 ~~ ~ ~ t s ~ r ' ~ SARAH PAL/N, GOVERNOR ~~_~~ ~~~ ~.~ ~_ L~itt~-7~ OII< ~ ~ 333 W. 7th AVENUE, SUITE 700 COlYSERQATI011T COMi~II5SIOrT ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ZYmothy Brandenburg Drilling Manager UNOCAL --' ~ ~ c ~„ PO Box 196247 ~d ~ -1 Anchorage AK 99519 Re: Deep Creek Field, Beluga/Tyonek Gas Pool, Happy Valley A-8 Sundry Number: 308-291 ~~~d~~N~~ A~1 G ~ 2008 .Dear Mr. Brandenburg: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. Chair DATED thisZ~ day of August, 2008 Encl. ~~ ~ e STATE OF ALASKA ~~"~ '~"` "` a ALA OIL AND GAS CONSERVATION COMf~ION ~~I/ APPLICATION FOR SUNDRY APPROVALS o0 20 AAC 25.280 ~~~~ti8 L a' 1. Type of Request: Abandon^ Suspend ^ Operational shutdown^ Perforate^ Waivej~ , Other / Alter casing^ Repair well ^ Plug Perforations~aQnulate ^ Time Extension ^ Install tubing ,, .. \\ Re-enter Suspended Well ^ patche Change approved progran^ Pull Tubing^ Perforate New Pool^ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Union Oil Company of California Development ^ , Exploratory ^ 204-114 3. Address: Stratigraphic ^ Service ^ 6. API Number: PO Box 196247, Anchorage, AK 99519 50-231-20023-00 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 ~ Happy Valley A-8 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): C-061590 [Happy Valley Facility] 23.9' Deep Creek / HV Beluga / Tyonek Gas 12. PRESENT WELL CONDITION SUMMARY Total De p t h MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): p / ~ 7QJ ~ ~3~ f ~~I .s~8= NIA (fill) Casing Length Size MD TVD Burst Collapse Structural Conductor 111' 16" 111' 110' Surface 1,194' 9-5/8" 1,194' 1,130' 5750 psi 3090 psi Intermediate Production 4,168' 7" 4,168' 2,630' 7240 psi 5410 psi Liner 4,876' 3-1 /2" 8,897' 6,731' Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached Schematic See Attached Schematic 3-1/2" 9.2# L-80 4,055' Packers and SSSV Type: Packers and SSSV MD (ft): Baker ZXP Liner top Packer / N/A 4,021' / N/A 13. Attachments: Description Summary of Proposal ^/ 14. Well Class after proposed work: Detailed Operations Program ^ BOP Sketch ^ Exploratory ^ Development ^/ Service ^ 15. Estimated Date for 8/26/2008 16. Well Status after proposed work: Commencing Operations: Oil ^ Gas ^/ / Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Steve Tyler 263-7649 Printed Name Timothy C. Brandenburg Title Drilling Manager Signature one 276-7600 Date 8/14/2008 _ 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 ^ ~j Other: 4~l\rtc:~i e.E ~~JQ ~ ~ G.CCU C~ ~ ~ ~ ~~cL~'S ~ ~~ Subsequent Form Required: '-1~~ APPROVED BY ~/~ / / L I p Approved by: COMMISSIONER THE COMMISSION Date. Form 10-403 Revised 06/2006 ~ ~~~" ~~~ ~ 1 ~~0~ Submit in Duplicate ORIGINAL eVl'O Happy Valley Happy Valley Well HVA-08 HVA-08 Last Completed 4/21/05 is" ~ »' 3B" ~ 31 TD =8,900' PBTD = 8,828' MAX HOLE ANGLE = 65.9" @2,877' Casing and Tubing Detail Size Type Wt/ Grade Top Btm CONN/ID Cement/Other 16" Structural 82.77#, K-55 Surface 111' 9-5/8" Surface 40#, L-80 Surface 1,194' BTC/ 8.835" 67 bbl of 12.8 ppg lead and 31 bbl of 15.8 tail "G" 7" Surface 26#, L-80 Surface 4,168' BTC-Mod/ 6.184" 71 bbl of 12.8 ppg LiteCrete lead and 15 bbl of 15.8 ppg "G" tail. 3-1/2" Liner 9.2#, L-80 4,021' 8,897' IBT-Mod/ 2.992" 145 bbl of 12.0 ppg Litecrete Tubing 3-1/2" Production 9.2#, L80 Surface 4,055' IBT-Mod/ 2.992" Annulus loaded with fresh water plus Baracor 100 corrosion inhibitor Jewelry Detail # Depth Length ID OD Item 1. 2,501' 7.40' 2.992" 5.25" Chemical injection sidepocket mandrel (Macco SFaIC-I) with I/4", 0.049" wall SS chemical injection line 2. 4,020' 15.10' 4.276" 6.06" Baker ZXP packer 3. 4,027' 1.19' 2.992" 5.0" Fluted Locator sub (L-80 [BT) 4. 4,036' 9.70' 4.408" 5.924" Flexlock liner hanger 5. 4,046' 16.98' 3.00" 3.99" Baker 80-40 seal assembly 6. 4,056' 0.50' 3.00" 3.99" Muleshoe Perforat ion Data ZONE TOP BTM Shot Condition B-31 4,972' 4,988' 6 3/9/05 5,235' 5,244' 6 8/17/04 B-40 5,254' 5,262' 6 8/17/04 5,295' 5,304' 6 8/17/04 B 45 5,694' 5,718' 6 8/26/04 - 5,729' 5,749' 6 8/26/04 6,073' 6,083' 6 8/17/04 B 50 6,100' 6,110' 6 8/17/04 - 6,116' 6,124' 6 8/17/04 6,128' 6,134' 6 8/17/04 B-65 6,504' 6,518' 6 8/26/04 6,738' 6,748' 6 8/26/04 B 80 6,759' 6,765' 6 8/26/04 6,772' 6,782' 6 8/15/04 6,791' 6,801' 6 8/26/04 B-100 7,248' 7,262' 6 3/9/05 T 1 7,910' 7,930' 6 8/11/04 - 7,949' 7,959' 6 8/11/04 T-6 8,247' 8,277' 6 8/11/04 T-66 8,336' 8,354' 6 3/9/05 T-7 8,393' 8,404' 6 8/11/04 T-10 8,541' 8,581' 6 8/9/04 Max Doglegs = 6.0 deg/100' at 4313' NO"f F.: 5.7 deg/100' at 1304' Slickline had problem hanging up a[ 4056' when mooing square-shoulder tool (8/15 & 12/9/04). 8.0 deg/100' at 236' Stimulation: Frac stimulated B-40 perfs (5235' - 5304' gross) on 12/15/04 with 103,000 Ibs of 20/40 sand in BJ Lightning-2000 gel. HVA-08 Well Schematic 8-14-08.doc Undated by CVK Tree cxn - 2.7/7' Bowen cxn ar-THF~ zs s' EVPO Happy Valley Happy Valley HVA-08 Well HVA-08 ~~ ~, r~a t~ ~~ ~ ~, ~,1 Last Completed 4/21 /05 1s" ~ 11' 3B" ~ l1 TD =8,900' PBTD = 8,828' MAX HOLE ANGLE = 65.9" @2,877' Max Doglegs = 6.0 deg/100' at 4313' 5.7 deg/100' at 1304' 8.0 deg1100' at 236' Casing and Tubing Detail Size Type Wt/ Grade Top Btm CONN/ID CementlOther 16" Structural 82.77#, K-55 Surface 111' 9-5/8" Surface 40#, L-80 Surface 1,194' BTC/ 8.835" 67 bbl of 12.8 ppg lead and 31 bbl of 15.8 tail "G" 7" Surface 26#, L-80 Surface 4,168' BTC-Mod/ 6.184" 71 bbl of 12.8 ppg LiteCrete lead and 15 bbl of 15.8 ppg "G" tail. 3-1/2" Liner 9.2#, L-80 4,021' 8,897' IBT-Mod/ 2.992" 145 bbl of 12.0 ppg Litecrete Tubing 3-1/2" Production 9.2#, L80 Surface 4,055' IBT-Mod/ 2.992" Annulus loaded with fresh water plus Baracor 100 corrosion inhibitor Jewelry Detail # Depth Length ID OD Item 1. 2,501' 7.40' 2.992" 5.25" Chemical injection sidepocket mandrel (Macco SFO-IC-I) with 1/4", 0.049" wall SS chemical injection line 2. 4,020' 15.10' 4.276" 6.06" Baker ZXP packer 3. 4,027' 1.19' 2.992" 5.0" Fluted Locator sub (L-80 IBT) 4. 4,036' 9.70' 4.408" 5.924" Flexlock liner hanger 5. 4,046' 16.98' 3.00" 3.99" Baker 800 seal assembly 6. 4,056' 0.50' 3.00" 3.99" Muleshoe Perforat ion Data ZONE TOP BTM Shot Condition B-31 4,972' 4,988' 6 3/9/05 5,235' 5,244' 6 8/17/04 B-40 5,254' 5,262' 6 8!17/04 5,295' 5,304' 6 8/17/04 B 45 5,694' 5,718' 6 8/26/04 - 5,729' 5,749' 6 8/26/04 6,073' 6,083' 6 8/17/04 B 50 6,100' 6,110' 6 8/17/04 - 6,116' 6,124' 6 8/17/04 6,128' 6,134' 6 8/17!04 B-65 6,504' 6,518' 6 8/26/04 6,738' 6,748' 6 8/26/04 B 6,759' 6,765' 6 8/26/04 80 6,772' 6,782' 6 8/15/04 6,791' 6,801' 6 8/26/04 B-100 7,248' 7,262' 6 3/9/05 T 1 7,910' 7,930' 6 8/11/04 - 7,949' 7,959' 6 8/11/04 T-6 8,247' 8,277' 6 8/11/04 /so/ate T-6B 8,336' 8,354' 6 3/9/05 T-7 8,393' 8,404' 6 8/11/04 /so/ate T-10 8,541' 8,581' 6 8/9/04 NOTF,: ^ Slickline had problem hanging up at 4056' when conning squaze-shoulder tool (8/15 & 12/9/04). ^ Stimulation: Frac stimulated B-40 perfs (5235' - 5304' gross) on 12/15/04 with 103,000 lbs of 20/40 sand in BJ [.ightning-2000 gel. HVA-08 Proposed Well Schematic 8-15-08.doc Updated by CVK Tree cxn - 2-1/Y' Bowen cxn Rr-n~F: zs.s' Chevron OBJECTIVE: • Clean out and isolate T-6 and T-7 sands with tubing patches. PROCEDURE SUMMARY: • Happy Valley Well #HVA-08 8/12/08 1 MIRU Slickline. RIH w/ GR tag fill. Note fluid level RIH and gauge tbg for WRP plug to 8000'. 2 MIRU Eline. PUMU WRP Plug. RIH set same @ +/-7500'. POOH. RD Eline. 3 RU Slickline. RIH dump bail 10' of sand on plug. RD Slickline. 4 Flow test well for 24 hours ~\` 5 MIRU Slickline. RIH w/ Pressure/Temp Tool with well flowing to 7400'. POOH. RD. `S `~~~~ ~C5 6 RIH w/ bailer. Bail sand off WRP. RIH w/ Retrieving tool. Latch/release & POOH w/ WRP QFr`~e" ZC~h~~ ~ I 7 MUSpot 1 3/4" CTU, tanks and accessory equip. mix 6% KCL water. `~ ~ 8 RU CTU. NU BOPE. Test same. Fill out Acceptance Checklist 9 RIH with CO nozzle. CO fill to TD with Lease Water w/ surface tension reducer. Blow well dry. Trap pressure. POOH. 10 RD/Demobe CTU. 11 MIRU Eline. PUMU Owens Tbg Patch. RIH set same to isolate T-7 Sand (8393'- 8404'). 12 PUMU Owens Tbg Patch. RIH set same to isolate T-6 Sand (8247- 8277). 13 RD & Demobe equipment. Turn well over to production. HVA-08 REVISED BY: CVK 8-12-08 Page 1 of 2 • • Maunder, Thomas E (DOA) From: Lopez, Keith [Iopk@chevron.com] Sent: Monday, August 25, 2008 2:46 PM To: Maunder, Thomas E (DOA) Cc: Tyler, Steve L; LONGDEN, MARKHAM R; Whitacre, Dave S Subject: RE: Happy Valley "Patching" This summary is provided per your request below: Happy Valley A-8 -The water rate is currently restricting the gas flow from this well and is on the verge of loading the well and killing it. Reducing or eliminating the water rate is necessary for continued production. We have multiple historic and recent production logs that do not lend aclear-cut answer as to which zone is making the large majority of the water. We have taken the indications from these logs, offset production tests, the well history timeline, and the production data to create the remediation plan. We believe that this plan gives us the best potential to reduce the water rate while limiting potential gas loss. Happy Valley A-2 -The T80 tested gas after initial perforating but produced a large amount of water after the subsequent fracture stimulation. This volume of fluid has restricted the gas flow from the deeper zones since this completion. The goal of this work is to remediate the water and attempt to produce the deeper Tyonek zones. If you have anymore questions regarding this work please let me know. Keith Lopez Chevron Petroleum Engineer Cook Inlet Gas Team 907-263-7853 Office 907-227-7748 Cell 907-263-7847 Fax 909 West 9th Avenue Anchorage, AK 99501 From: Tyler, Steve L Sent: Monday, August 25, 2008 11:45 AM To: Lopez, Keith Subject: FW: Happy Valley "Patching" FYI • aunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Mon ~ a , ~ 5 2008 10:18 AM To: Tyler, Steve L Subject: RE: Happy Valley "Patching" Steve, ~~..` I am reviewing the sundry submitted to patch the T-80 sand in Happy Valley A-2 (203-113). As 8/25/2008 Page 1 of 1 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Wednesday, August 20, 2008 5:04 PM To: Tyler, Steve L Subject: Happy Valley A-8 (204-114) Steve, I am reviewing the sundry submitted to put patches over 2 Tyonek pert zones. Could you provide a little information regarding the production history? Does Unocal/Chevron have information that these zones are the water culprits? Thanks in advance. Tom Maunder, PE AOGCC 8/25/2008 Chevron ~ancisco Castro Chevron Nort~erica Exploration and Production Technical Assistant 909 W. 9th Avenue s ~` ,~,~,~ ~,~~ ~` Anchorage, AK 99501 Tele: 907 263 7844 Fax: 907 263 7828 E-mail: fcbn@chevron.com DATE March 27, 2008 To: AOGCC Mahnken, Christine R 333 W. 7th Ave. Ste#100 Anchorage,. AK 99501 HAPPY VALLEY - 08 __ NOTES - WELL LOG TYPE SCALE LOG DATE INTERVAL RUN # 6-LINE CD LAS, PDS LOGGED , DLIS PRODUCTION PROFILE W/ DEFT HAPPY & GHOST TRESSS-TEMP-CCL- DLIS, VALLEY A-8 GR-GRADIO-PILS-FBS 5" 3-Mar-08 4972 - 8430 1 1 PDF, PDS ~Rt APB ~ 200 c,~~ l~L~ ~~(00~ ~~ Please acknowledge receipt by signing and returning one copy of this transrnFik~l ~~`~.FAX~og9@Y7 6'3 7828. Received By: Date: > f;~, ~~ 7 ~v'Ira(~.:~ <~ ~ (1113 :.,~ • • Chevron -Alaska Weekl O erations Re ort y p p ~© ~ W ll Na ~ ~ ~ ~ I e me HV-A08 Field Name API/UWI Lease/Serial Happy Valley Field 502312002300 C-061590 Odg KB Elev (ftKB) Water 738.5 Depth (ft) 0.00 Primary Job Type Primary Wellbore Affected Logging Original Hole ,''Jobs r;~," h ~',vt AF , , ~ ,ct,v,. ~-,.,, ~tar~ ~, d o..-: O _.- C Err. Logging Well bervice 8007 I Run ghost Yog to determine tlwd entry to well _ - EXP -- - - bore. s/[i2uu8 3/3/[uu8 - -- ----- - I i ---- Daily Operations 312120D8 vper. r, ~, ~ ~ Rig iii. Schlunih~-i lar i~in ~~hcsllc~ monit r .1:all 3!3/2008 i • • .--.~. ~, _ --,. °~' ~~:' '• ~ 03~o~~zoos DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE F:\LaserFiche\C~rPgs_Inserts\Microfilm Marker.doc Permit to Drill 2041140 MD 8900- -"-,- J-7 ~ DATA SUBMITTAL COMPLIANCE REPORT 9/11/2006 Well Name/No. HAPPY VALLEY A-a Operator UNION OIL CO OF CALIFORNIA Completion Status i-GAS Current Status i-GAS - ---- REQUIRED INFORMATION TVD 6734 _ Completion Date 8/27/2004 s. ",-I.. ^" J v-L:> J...c.t" I APrNo. 50-231-20023-00-00 UIC N Mud Log No Samples No Directional Survey Yes DATA INFORMATION Types Electric or Other Logs Run: SCMT, GRlSP/Resistivity/Density/Neutron/Sonic Well Log Information: Electr Digital Dataset Med/Frmt Number Log/ Data Type ~CPd' ~ I fD C Pds 1<~~ I 1'" C Pd, k~ I I I ~ C Pds ~l °D9/PdS }D C Pds I I ~V I I I ~ C Lis Name (data taken from Logs Portion of Master Well Data Maint Log Log Run Scale Media. No Interval OH / Start Stop CH Received Comments . 12631 -Cement Evaluation BS 3970 8815 Case 8/27/2004 3970 8815 Case 8/27/2004 7700 8537 Case 8/27/2004 7700 8537 Case 8/27/2004 3950 7895 Case 8/27/2004 3950 7895 Case 8/27/2004 8541 8581 Case 8/27/2004 8541 8581 Case 8/27/2004 3950 6305 Case 8/27/2004 Cement Evaluation 12630'" Perforation Perforation 12629 "'Completion Completion 12628'" Perforation Perforation 12627, Completion 12886.1 Sonic Completion BS BS BS BS 3950 6305 Case 8/27/2004 20 8892 Open 12/7/2004 SLIM CEMENT MAP TOOL, SLIM CEMENT MAP TOOL, DSN 12631 PERFORATION RECORD, 2.5" 2506 PJ 6 SPF PERFORATION RECORD, 2.5" 2506 PJ 6 SPF, DSN 12630 COMPLETION RECORD 2.5" POWERJET HSD 6 SPF COMPLETION RECORD 2.5" POWERJET HSD 6 SPF, DSN 12629 I PERFORATION RECORD, i 2.5" 2506 PJ 6SPF I PERFORATION RECORD, I 2.5" 2506 PJ 6SPF, DSN I 12628 COMPLETION RECORD, I 2.5" POWERJET HSD, I 2.25 POWERJET HSD I 6SPF, I COMPLETION RECORD, I 2.5" POWERJET HSD, 2.25 POWERJET HSD I 6SPF, DSN 12627 I SONIC QUAD COMBO i J . DATA SUBMITTAL COMPLIANCE REPORT 9/11/2006 Permit to Drill 2041140 Well NamelNo. HAPPY VALLEY A-a Operator UNION OIL CO OF CALIFORNIA API No. 50-231-20023-00-00 MD 8900 TVD 6734 Completion Date 8/27/2004 Completion Status 1-GAS Current Status i-GAS UIC N ~ 12886 Sonic 2 Bfi 20 8892 Open 12/7/2004 SONIC QUAD COM8()I I I fi./Pd' 12886 Completion 5688 6799 Case 12/7/2004 COMPLETION RECORD I 12887 ..completion 5 BS 5688 6799 Case 12/7/2004 COMPLETION I IfO~' c- ~t, lJJl,1 RECORD/2.5" 2506 I POWERJET HSD 6SPF I cáJ C Las 12888 Mud Log 78 8900 Open 1217/2004 oil & gas MD Mud log I ~c I - 12888/ Mud Log 2 Col 78 8900 Open 12/7/2004 oil & gas MD Mud log [ ! Pds 13262 Completion 4020 5630 Case 7/29/2005 Completion Record I Halliburton Fasdrill Bridge I ~ Plug \ I 13262.... Completion 5 BM 4020 5630 Case 7/29/2005 Completion Record [ I Halliburton Fasdrill Bridge I Plug i ;..E1:1 C Pds 13263 - Completion 3900 8440 Case 7/29/2005 Completion Record 2.5 " I I HSD Powerjet 6 SPF I I i I~ 13263 Completion 5 BM 3900 8440 Case 7/29/2005 Completion Record 2.5 " i HSD Powerjet 6 SPF I -~,- -~ ~-~- Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments ADDITIONAL INFORMATION Well Cored? y{Ð Chips Received? ~ Daily History Received? 0:JN &:iN . Formation Tops Analysis Received? ~ ~~ -~~-- Comments: , como",n.. Rev;~ .,- ~=~ t.v Date: 1 q~-<o , · ,....'" -- - -- PO Box 196247, Anchorage, AK 99519 STATE OF ALASKA ALASelL AND GAS CONSERVATION COMMI.,N REPORT OF SUNDRY WELL OPERA~NS Alaska Oil & Gal Cons. V¡j¡ml1ls~ion Stimulate U Other ~ 1~~~Jf,~lary WaiverO Time Extension 0 String Re-enter Suspended Well D 5. Permit to Drill Number: ExploratoryD 204-114 ServiceD 6. API Number: 50-231-20023 9. Well Name and Number: HV-A08 10. Field/Pool(s): Happy Valley Field/Beluga, Tyonek NOV 1 4 2005 1. Operations Abandon U Repair Well U Performed: Alter Casing D Pull Tubing D Change Approved Program D Operat. Shutdown D 2. Operator Union Oil Company of California Name: 3. Address: Plug Perforations U Perforate New Pool 0 Perforate D 4. Current Well Class: Development [] StratigraphicD 7. KB Elevation (ft): 739' 8. Property Designation: Happy Valley Production Facility 11. Present Well Condition Summary: Total Depth measured 8,900 feet true vertical 6,734 feet Effective Depth measured 8,828 feet true vertical 6,666 feet Casing Length Size MD Structural Conductor 111 ' 16" 111 ' Surface 1,194' 9-5/8" 1,194' Intermediate 4,168' 7" 4,168' Production Liner 4,876' 3-1/2" 8,897' Perforation depth: Measured depth: 4,972' to 8,581' Plugs (measured) n/a Junk (measured) nla TVD Burst Collapse 110' 1,130' 5,750 psi 3,090 psi 2,630' 7,240 psi. 5,410 psi 6,731' True Vertical depth: 3,251' to 6,434' Tubing: (size, grade, and measured depth) 3-1/2",9.2# L-80 @ 4,055' Packers and SSSV (type and measured depth) Baker ZXP packer, flexlock liner hangér and 80-40 sealbore @ 4,021' 12. Stimulation or cement squeeze summary: Intervals treated (measured): n/a Treatment descriptions including volumes used and tinal pressure: n/a 13. Representative Daily Average Production or Injection Data Gas-Met Water-Bbl Casing Pressure 1500 MCF 23 bbl 0 1750 MCF 23 bbl 0 15. Well Class afte~oposed work: ExploratoryU Development [] Service D 16. Well Status after proposed work: OilD Gas [] WAG D 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Oil-Bbl n/a nla Tubing Pressure 800 800 Prior to well operation: Subsequent to operation: 14. Attachments: Copies of Logs and Surveys Run Daily Report of Well Operations x GINJ D WINJ D WDSPL D I Sundry Number or N/A if C.O. Exempt: n/a Contact Timothy C. Brandenburg Printed Name Timothy C. Brandenb? s;,oo'"? CL~/? c'''' P Title Drilling Manager Phone 907-276-7600 Date 1/- ? -¿¡s- Form 10-404 Revised 04/2004 nRIGINAL AFE 164501 ODOMS'" SF·" n"g.. .' ~.. ...... t 4 Z005 Submit Original Only c.. . API: 50-231-20023 AOGCC: 204-114 1324'FSL,1203'FEL Sec22, T2S, R13W, S.M. RT-THF: 23.9' Tbg lift threads - 3W' IBT Tree cxn - 2)1,," Bowen cxn Production Tubing: 3W', 9.2 ppf, L-80, IBT-Mod to 4055' - Annulus loaded with fresh water plus Baracor 100 corrosion inhibitor Completion - Capillary injection string (0.25" OD, 0.035" wall, duplex SS) run to 6000' (9/23/05). Total length of cap string = ±8700'. Injection valve set at ±2000 psi. ~ Chemical injection sidepocket mandrel at 2501' (Macco SFO-1C-I) with 1/4", . 0.049" wall SS chemical injection line - Locator sub @4027' - Baker 80-40 seal assembly 17' of 4.00" OD seals - Muleshoe at 4055' NOTE: Slickline had problem hanging up at 4056' when running square-shoulder tool (a/15 & 12/9/04). Stimulation; Frac stimulated B-40 perfs (5235' - 5304' gross) on 12/15/04with 103,000 Ibs of 20/40 sand in BJ Lightning-2000 gel. Junk/Fill: - Slickline bailed sand to 8574' (9/22/05) Directional Data: max hole angle = 65.9 deg at 2877' KOP = 175' max doglegs = 6.0 degl100' at 4313' 5.7 deg/100' at 1304' 8.0 deg/100' at 236' HV-8 Actual schematic 9-26-2005 ... z ~ ... I z ~ \ (= ~w~ PBTD = 8828' TD = 8900' . Well Name: Happy Valley ADa Field: Deep Creek Unit State: Alaska ',conductor: 16",82.77 ppf, K-55 to I 111 ' Surface Casing: 9-5/8", 40 ppf, L-80, ~ BTC to 1194' Cmnt with 67 bbl of 12.8 ppg lead and 31 bbl of 15.8 ppg tail "G" Intermediate Casing: 7", 26 ppf, L-80, BTC-Mod to 4168' Cmnt with 71 bbl of 12.8 ppg LiteCrete lead and 15 bbl of 15.8 ppg "G" tail. Open Perfs: B-31: 4972' - 4988' (6 spf, 3/9/(5) B-40: 5235' - 5244' (6 spf, 8/17104) B-40: 5254' -5262' (6 spf, 8/17104) B-40: 5295' - 5304' (6 spf, 8/17104) B-45: 5694' - 5718' (6 spf, 8/26/04) B-45: 5729' - 5749' (6 spf, 8/26/04) B-50: 6073' - 6083' (6 spf, 8/17/.04) B-50: 6.100' - 6110' (6 spf, 8/17(04) B-50: 6116' - 6124' (6 spf, 8/17104) B-50: 6128' - 6134' (6 spf, 8/17/04) B-65: 6504' - 6518' (6 spf, 8/26/04) B-80: 6738' - 6748' (6 spf, 8/26/04) B-80: 6759' - 6765' (6 spf, 8/26/04) B-80: 6772' - 6782' (6 spf, 8/15/04) B-80:6791' - 6801' (6 spf, 8/26/04) B-100: 7248' - 7262' (6 spf, 3/9/05) T-1: 7910' - 7930' (6 spf, 8/11/04) T-1: 7949' - 7959' (6 spf, 8/11/04) T-6: 8247' - 8277' (6 spf, 8/11/04) T-6B: 8336' - 8354' (6 spf, 3/9/05) T-7: 8393' - 8404' (6 spf, 8/11/04) T-10: 8541' - 8581' (6 spf, 8/9/04) Production Liner: 3W', 9.2 ppf, L-80, IBT-Mod liner from 4021' - 8897' Baker ZXP packer, Flexlock liner hanger & 80-40 sealbore at 4021' Cemented with 145 bbl of 12.0 ppg Litecrete Updated by: JGE 9/19/05 . . PJSM. Inspected and repaired Dynacoil unit parked at EFDF. Loaded unit onto Weaver float and transported to Happy Valley. Mobilized Pollard mast truck to Happy Valley. Production Operator on HV pad purged capillary string with clean, fresh water. Pump pressure down the capillary = 800 psi while pumping water at max rate with chemical pump. 9/20/05 SITP = 1000 psi. PJSM/SIMOPS. Discussed pulling procedure in detail and contingencies. Capillary string has 0 psi. Disconnect capillary tube from chemical supply line. Stab end of capillary string through injector head. Spool up extra capillary string onto reel. NU injector head onto wellhead. Confirm that manual BOPE are open. Pressure up on hydraulic packoff. pÜ on capillary string sufficient to remove the slips. Initial hanging weight = 600 Ibs. Pulled up to 1300 Ibs, then shut down to discuss. Shut down to confirm max allowable pull on capillary string. Begin to PU on capillary string. Discovered failed hydraulic hose. Shut down to replace hydraulic hose. POOH with capillary string at 140 fpm. Maximum PU weight = 1500 Ibs off bottom, lined out at 1200 Ibs. No problem working past packer at 4,055' MD. Closely inspected capillary tubing that was opposite the B-40 perfs (5,235'- 5,304' MD) that were frac stimulated Dec-04. No sign of erosion or wear on the capillary tubing. Finish POOH, shut well in at master valve. Bleed off wellhead pressure. Wing valve leaking, had to shut SSV. NO injector head. BHA had some sand and grit on it. Remove injection valve. NO manual BOPs and DSA. NU Bowen tree cap for wireline access. Test capillary string injection valve - opened at 2,000 psi (good). 9/21/05 SITP 1050 PSI at07:00. Pollard and Peak operator on location at 07:30 RU PJSM & SIMOPS. Pressure test lubricator 200 /2,000 psi using Peak pump truck, RIH with 2.75 gauge ring. Tag fill at 8!474', 650# over pull up to 8,300 did see ice on gauge ring. POOH RIH with 2.75 5' bailer. Bailer stopped at 112' greased line and hand worked line down to 124' figured it was line pack off. Tag fill at 8490' worked to 8554' pul wt 1550 Ib to POOH. Had to work tools from 140 to 108. Full bailer 2 gal frac sand. RIH 2.75 GR set down at 108' worked in and out POOH. Called Superintendent and engineer discuss forward plan. Hook up methanol to lubricator start pumping. RIH 2.75 GR set down at 112' worked in and out POOH. RIH with 2.75 brush to 150' little restriction brushed several runs 100' to 150'. RIH 2.75 GR still having problem at 114' to 154' POOH RU 2.50 x 5' bailer RIH to 88324 work to 8580 POOH wi minimal drag POOH. Bailer 1/2 full. RD, Pollard strip 200' line. Production will flow well through the night. . 9/22/05 Pollard and Peak Operator on site 07:30. RU to run 2.75 gauge ring to bottom. SRU sent crew out to grease valves. PJSM, SIMOPS production. Pressure test lubricator 200 psi low 2500 psi high with diesel. RIH with 2.75 gauge ring to 8439 KB' went through 112' area with out a problem POOH. RIH with 2.25 x 10' bailer WIT from 8354 to 8574' KB. POOH full bail frac sand. RIH with 2.50 x 3' bailer WIT from 8,374 to 8,574' KB POOH full bail frac sand. POOH. RD. Mob Dyna-Coil unit from SRU spotted on location. 9/23/05 RU and set injector head. PJSM SIMOPS met with Gary Eller go over procedure. SITP 1,100 psi Pressure test pack off 200 low 2000 high RIH at09:00 to 6,000' 200 to 250 Ib to push down set capillary string. Real off remaining tubing 2,700' roll up andset by well head. Clean up unit prep to ship to OSK dock. WBI hauled unit demobed. Turned over to production. 10/12/05 No activity. Well HV-A8 shut in. Well not performing adequately with the capillary tube hung at 6,000' MD. No sign of getting soap to surface, and productivity dropping rapidly. Mob Dynacoil unit from EFDF to Happy Valley. Spot unit beside well HV-A8. Reopen well HV-A8 to production without pumping soap. SDFN. 10/13/05 HV-A08 164501 Inspect Capillary String, morning report summary, CONFIDENTIAL: last revised 11/3/2005. Page 1. Well HV:A8 producing 2.3 mmcfd. 840 psi FTP. Rate dropping quickly. CP. psi. RU Dynacoil unit on well HV-A8. Held prejob safety meeting with Production. Waited on Pollard crane (broke down on road). PU the injector head. Stab capillary line into head. Pull slips. RIH with capillary string from 6000' to 7800' MD. Well flowing the entire time. Set slips on cap string. RD injector head, release Dynacoil crew. Begin pumping soap at 5 qpd while producing well to sales. 10/14/05 Well producing to sales. At 0100 hrsdiscovered that soap pump not working. Reset pump at 5 qpd. By 0530 hrs, the well was down to producing 900 mcfd. Blew well down to vent, rate increase to 1300 mcfd. By 0800 hrs rate had picked up to 1700 mcfd. HV-A08 164501 Inspect Capillary String, morning report summary, CONFIDENTIAL: last revised 11/3/2005, Page 2. ß··.F : ~ . :;::¡ ¡i Lb ",. '" j ¡ ,'¡\\ ¡ '.,""" 'ill.. , ~ :\~ ,1 U \ Ij in\ u w U . I""""" J\.I,ASKA. ORAND GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR November 9, 2005 333 W. 7'" AVENUE. SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Mr. Larry Greenstein UNOCAL [Chevron] P.O. Box 196247 Anchorage, Alaska 99519 ~.~-~...... "',:"':' ' ".. ',_ .~" "", .f'- .... .. _,' "c.- ';. '- .e.: '<,-":", .. <'; i,',; ~--"'. . . ..' . - ,::¡,~'~}~,'.;:\ ".,- ¡'-,,-' Dear Mr. Greenstein: The Alaska Oil and Gas Conservation Commission ("Commission") performed an inspection of your well safety valve system (SVS) at Deep Creek Unit, Happy Valley "A" pad on November 1, 2005. Attached is a copy of the Inspection Report. Regulation at 20 AAC 25.265 in conjunction with Conservation Order 553 requires all development wells to be equipped with a fail-safe automatic surface SVS capable of preventing uncontrolled flow by shutting off flow at the wellhead. An SVS component failure rate of 30 percent was identified during the above-noted inspection. Commission test interval requirements provide that the testing frequency will be increased when a failure rate exceeds 10 percent. The Commission inspector identified freezing as the cause of failure, preventing the SSV from closing on wells A-2, - 8, and -9. Effective November 1,2005 and until an acceptable level of performance is achieved, the safety valve systems associated with wells located on Happy Valley A-pad must be tested every 90 days. When testing is scheduled, you must notify the Commission (907-793-1236; 907-659-2714 on weekends and after hours) at least 24 hours in advance to provide an opportunity to witness the SVS test. Unocal moot also provide the Commission with a written summary of the work to be completed to ensure the SVS is operational, specifically addressing the freezing concerns that prevented the SSV s to function properly when tested. Sincerely, ~. -;-,.--.., ',,~ft.~ t), Ké'é¡'cy James B. Regg { Petroleum Inspection Supervisor Attachment cc: AOGCC Inspectors Safety Valve & Well Pressure~ Test Report Reviewed By: P.I. Suprv Comm J Pad; DC_HAPPY_VALLEY_A Field Name DEEP CREEK Insp Dt ) 1/1/2005 Inspected by Lou Grimaldi Interval 90 Days InspNo svsLG051102044246 Related JJlSp: Operator UNION OIL CO OF CALIFORNIA Operator Rep Steele/Tresler Reason l80-Day Src: Inspector Well Permit Separ Set UP Test Test Test Number Number PSI PSI Trip Code Code Code A-I 2030720 800 600 650 P P --~-<-'._. ~--_._.._-~- A-1O 2041860 800 600 590 P P ~_. ---'-'-"-'-~'-'-----'-- ._----_._-~---_.- --------.-...--,- A-2 2031130 800 600 600 P 6 2ð4-1I4{) 800 609' 204]700 800 600 580 P 6 Comments DateSI Oil, W AG,GlNJ, Inner Outer Tubing GAS,CYCLE, SI PSI PSI PSI Yes/No Yes/No ~""-- -~~--- J-GAS 0 0 950 No No --~---- ------ J-GAS 0 0 900 No No "-.--,.-------- ._-- -"---.'--~-- -'-"-~-- .---..-.---.-.- I-GAS 0 0 805 No No -.....---.,-...---'--,....- --..- ----- .'--__'__-0 _ I-GAS 30 0 820 No No I-GAS 0 0 795 No No Performance -~~_._-----'.._---- wells 2,8,&9 failed to close, appeared to be froze Pad manned and wells observed, heaters wilJ be applied and valves thawed and successfully retested by 12:00 ] 1102/05 or be shut-in Outstanding equipment setup and appearance of maintenance. Wells Components Failures Failure Rate 5 ____J_º__}____~___)_oy~_ ~--_._-_.._.--...~._- . .~-~_.--_.,._---._.- ~._- . ( o p y Wednesday, November 02, 2005 . Unocal Alaska 909 W. 9th Avenue Anchorage. AK 99501 Tele: (907) 263-7889 Fax: (907) 263-7828 E-mail: oudeand@unoca/.com . UNOCAL Debra Oudean G & G Technician Date: July 27, 2005 To: AOGCC Helen Warman 333 W. 7th Ave. Ste#100 Anchorage, AK 99501 1·.1~' ,~~ .:,~'~(:i¡'lI ~IW 204·207 502312002800 HAPPYVALLEY·10 PERFORATION RECORD 2 HSD POWERJET GUNS 5-Ó2àÜ~ÖÖ2äöö HÄP"F)y\ïÄLLEY~1-Ö" - '"""'ERFÒRA"fióN ...... RECORD 2 HSD ·¡:>9WEF¡JETGUNS 502312002800 ·HAPPYVAÙ.E'{lO MULTIPLE PROPAGATION RESISTIVITY GAMMA RAY MD 502312002800 HAPPYVAÙ.EY:iÒ MULTIPLE m PROPAGATION RESISTIVITY . GAMMAF¡AYTYº 502312002900 HAPPY VAÙ.ä11 GAMMA RAY I CCL COMPLETION RECORD 2.5 HSD ... ¡:>9W¡:BJ¡:TS 502312002900 . ... HÄPPYVÄù.fr - 11 . COMPLETION 5 INCH RECORD 2.5 HSD POWEf!~g~ 502312002900 mHÄPPYVAi.ï:ä11· COMPLETIONm ·····SÎNCH· RECORD 2.5 HSD POWERJETS s02312002900 ... mHÄPPYVÄiIEY·11 . COMPLETION ···SiNeH· RECORD 2.5 HSD POWERJETS 502312002900 ·HÄPPYVÄÙ.EY:li ·cOMF>lËTioN SìNCH RECORD 2.5 HSD POWERJETS 6 SPF. 60 DEGREE PHAZED ····s02312001600 . HÄPPYvÄÙ.EY:3 ", cOMPLETiON .mifìNCH RECORD WEATHERFORD WRP PLUG 502312002300 ·HÄPPyvÄiIEY:ii COMPLETION SINCi'¡ RECORD 2.5 HSD POWERJETS 6 SPF ŠÒ¿á1200230Ò HAPPY VALLEY·8 'CðMP[Ef¡õ'N""-'~~'--Y_-' 5 INCH RECORD HALLIBURTON FASDRILL BRIDGE ,.., ¡:>LU?". Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. 204-186 204-186 51NGH 06·May-05 7675-8216 ··sINCH .,....................,..........,,-.. 02·May-05 8090-8221 215 INCH 11·0ct-04 3860-8420 2ïSINCH 11·0ct-04 3860-8420 S,NCH···· 30-Nov-04 7000·10003 pds 204-186 o . ..._---....--....-......-..._--......-..,-,-... las. metafile. viewer . 204-186 o .....,-......,......"..--.,.,-...,-"...----,.-. las. metafile. viewer 204·207 pds 03-Dec-04 9530-9654 pds ,,--·..·o_····__·..,·',_··'-'".._w_·__, 204·207 ..,__,~__'","'·N.._W...__..." ,.._ _.. __n_.__w..~_~____.." 04-Dec-04 9104-9154 pds 204·207 Òl:Ôec:o:r 9262·9636 1 pds 204-207 10-Dec-04 9260-9640 pds 203-222 "__··~·__····''''_''__·~_.~··''__····''''c 19·Apr-04 10270·10545 o . 204·114 ,",--.....'...........'.-"...--,-.'.--....----,.. 09-Mar-05 3900-8440 _1 ,1 ,1 pds ))~b) ~ .····,...w__·"_·,·_·~·"_·.,.,·,,,·.·_·_., 204-114 ò9:bèc~04 '··4ò2o·sè3o· ./... pdS I~ÀLJ... Received By: JLJ- Ö~ Date: / ~ J;J:- Àh-\ )- 204-170 502312002700 204-170 501231200270 o HAPPY VALLEY-9 HAPPY VALLEY-9 . COMPLETION RECORD 2.5 HSD .P'0\IVER.Jg~.6 ¡¡fOr COMPLETINO RECORD HALLIBURTON . FASDRILL BRIDGE _p~YG 5 INCH 5 INCH 18·Dec-04 09·Dec-04 6300·7500 '.. <w,·,·_____·.,_··,·.w,·.·_'..~,·,.,·_, 6390-7650 . dlis,fma,pds pds Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. Received By: Date: 7 . . ;<0 f - ((ef UNOCALœ '-Alaska .J. Gary Eller Completions Engineer Unocal Alaska Te/907.263.7848 Cell 907-351-1313 Fax 907-263-7847 E-ma/I: ellerg@unocal.com June 8, 2005 JUN 0 2005 Mr. Steve McMains Alaska Oil & Gas Conservation Commission 333 W. ih Avenue Anchorage, Alaska 99501 Re: 10-407 Sundry for Well HVA-08 Mr. McMains, Per our conversation, Unocal is submitting the attached 10-407 Sundry dated 6/8/05 for Well HVA-08. This satisfies the requirement of Sundry approval #304-418. Unocal completed this project 2/2/05 and previously submitted 10-404 Sundry dated 3/11/05, which satisfied Sundry approval #304-476. Si.n.t· r.e..,y, l. ~\ \-- \')'\, ~"."" +1".í' ' . .. \...., J.[Gar\',Eller . C~ple~\ions Engineer ... . Atta~~ents OR\GII\~AL Union Oil Company of California I Unocal Alaska 909 West 9th Avenue, Anchorage, Alaska 99501 http://www.unocal.com . STATE OF ALASKA _ ALASKA AND GAS CONSERVATION COMMIS~ t; .... (, .... WELL COMPLETION OR RECOMPLETION REPORT AND LO~N tl ð OilU Gas0 Plugged 0 Suspended 0 20AAC 25.110 Other WAGU 1b. Well Class: Development [2] Explor~Or:yB Service 0 Stratigraphic TestO 12. Permit to Drill Number: ~ 204-114 ..30#-4"~.~ 13. API Number: 50-231-20023 14. Well Name and Number: HV-A08 15. Field/Pool(s): Abandoned U 20AAC 25.105 No. of Completions 1 1a. Well Status: GINJD WINJD WDSPLD 2. Operator Name: Union Oil Company of California 3. Address: PO Box 196247, Anchorage, AK 99519 4a. Location of Well (Governmental Section): Surface: 1324' FSL, 1203' FEL, See 22, T2S, R13W, S.M. Top of Productive Horizon: 1817' FSL, 562' FWL, See 22, T2S, R13W, S.M. 5. Date Comp., Susp., or Aband. : 6. Date Spudded: July 20, 2004 7. Date TO Reached: July 30, 2004 8. KB Elevation (ft): 739' 9. Plug Back Depth(MD+ TVD): 7881 '/5787' 10. Total Depth (MD + TVD): 8900'/6734' 11. Depth Where SSSV Set: n/a 19. Water Depth, if Offshore: nla feet MSL Total Depth: Happy Valley Field BelugalTyonek Pool 16. Property Designation: C-061590 17. Land Use Permit: nla 20. Thickness of Permafrost: nla 1931' FSL, 1094' FEL, See 21, T2S, R13W, S.M. 4b. Location of Well (State Base Plane Coordinates),:~,.....8AO Surface: x- 2280~~S- y- 2189¢~ l/ll!rzone-¢ TPI: x- 224573 y- 2190410 Zone- ~ Total Depth: x- 222920 y- 2190562 Zone- / 18. Directional Survey: Yes [2] No 0 21. Logs Run: SCMT, GRlSPI AIT/Density/Neutron/Sonic 22. CASING, LINER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT. TOP BOTTOM TOP BOTTOM PULLED 16" 82.77 K-55 0 111 0 110 driven nla 9-5/8" 40 L-80 0 1194 0 1130 12-1/4" 67 bbl, 12.8 ppg & 31 bbl, 15.8 ppg, "G" 7" 26 L-80 0 4169 0 2631 8-112" 71 bbl, 12.8 ppg & 15 bbl, 15.8 ppg, "G" 3-1/2" 9.2 L-80 4021 8897 2543 6731 6-1/8" 145 bbl, 12.8 ppg Litecrete 23. Perforations open to Production (MD + TVD of Top and Bottom Interval, Size and Number; if none, state "none"): see attached perf record & wellbore schematic. Perfs too numerous to list in space provided. TUBING RECORD DEPTH SET (MD) 4055 24. PACKER SET (MD) Baker ZXP @ 4021' SIZE 3-1/2",9.2#, L-80 25. FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED PRODUCTION TEST Method of Operation (Flowing, gas lift, etc.): flowing Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: 12/30/2004 1/24/1900 Test Period ... 0 2218 Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Press. 700 900 24-Hour Rate ... 0 2218 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". 26. Date First Production: Choke Size: GaS-Oil Ratio: nla nla Oil Gravity - API (corr): n/a Water-Bbl: o Water-Bbl: o nla RBDMS BFL ,JUN 0 9 2005 ~(. L Form 10-407 Revised 12/2003 CONTINUED ON REVERSE NAME GEOLOGIC MARKERsA M~- TVD 29. aRMATION TESTS Include and briefly sum e test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". 28. nla nla 30. List of Attachments: 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Gary Eller (263-7848) Printed Name: Timothv C. Brandenburq Signature: ( ~~ _ ~ ¿'/ /..-/ ~-----~ Title: Drilling Manager Phone: 907-276-7600 Date: 8-Jun-05 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 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 :e UNOCALe API: 50-231-20023 AOGCC:204-114 1324'FSL,1203'FEL Sec22, T2S, R13W, S.M. RT-THF: 23.9' Tbg lift threads - 3%" IBT Tree cxn - 2%" Bowen cxn Production TubinQ: 3Y:z", 9.2 ppf, L-80, IBT-Mod to 4055' - Annulus loaded with fresh water plus Baracor 100 corrosion inhibitor Completion - Chemical injection sidepocket mandrel at . 2501' (Macco SFO-1C-I) with 1/4", 0.049" wall SS chemical injection line - Locator sub @4027' - Baker 80-40 seal assembly 17' of 4.00" 00 seals - Muleshoe at 4055' NÐTE: Slickline h'ad problem hanging up at 4956' when running square-shoulder tool (a/15 & 12/9/04). Stimulation: Frac stimulated B-40perfs (5235' - 5304' gross) on 12/15/04 with 103,000 Ibs of 20/40 sand in BJ Lightning-2000 gel. Junk/Fill: - Coil tubing washed to 8817' (12/28/04) Directional Oata: max hole angle = 65.9 deg at 2877' KOP = 175' max doglegs = 6.0 deg/100' at 4313' 5.7 deg/100' at 1304' 8.0 deg/100' at 236' HV-8 Actual schematic 1-18-2005 ~ :8: ~ · · · · · · · · · · · · · · · ... z ~. ~ ~ PBTO = 8828' TO = 8900' . Well Name: Happy Valley #8 Field: Deep Creek Unit State: Alaska I ¡COnductor: 16", 82.77 ppf, K-55 to 111 ' Surface CasinQ: 9%", 40 ppf, L-80, ~ BTC to 1194' Cmnt with 67 bbl of 12.8 ppg lead and 31 bbl of 15.8 ppg tail "G" Intermediate CasinQ: 7", 26 ppf, L-80, BTC-Mod to 4168' Cmnt with 71 bbl of 12.8 ppg LiteCrete iead and 15 bbl of 15.8 ppg "G" tail. Open Perfs: B-40: 5235' - 5244' (6 spf, 8/17/04) B-40: 5254' - 5262' (6 spf, 8/17/04) B-40: 5295' - 5304' (6 spf, 8/17/04) 8-45: 5694' - 5718' (6 spf, 8/26/04) B-45: 5729' - 5749' (6 spf, 8/26/04) B-50: 6073' - 6083' (6 spf, 8/17/04) B-50: 6100' - 6110' (6 spf, 8/17/04) B-50: 6116' - 6124' (6 spf, 8/17/04) B-50: 6128' - 6134' (6 spf, 8/17/04) B-65: 6504' - 6518' (6 spf, 8/26/04) B-80: 6738' - 6748' (6 spf, 8/26/04) B-80: 6759' - 6765' (6 spf, 8/26/04) B-80: 6772' - 6782' (6 spf, 8/15/04) B-80: 6791' - 6801' (6 spf, 8/26/04) T-1: 7910' - 7930' (6 spf, 8/11/04) T-1: 7949' - 7959' (6 spf, 8/11/04) T-6: 8247' - 8277' (6 spf, 8/11/04) T-7: 8393' - 8404' (6 spf, 8/11/04) T-10: 8541' - 8581' (6 spf, 8/9/04) Production Liner: 3Y:z", 9.2 ppf, L-80, IBT-Mod liner from 4021' - 8897' Baker ZXP packer, Flexlock liner hanger & 80-40 sealbore at 4021' Cemented with 145 bbl of 12.0 ppg Litecrete CONFIDENTIAL Updated by: JGE Ie e 12/6/04' . Producing well PJSM, spot Pollardwireline unit, rig up lubricator and pressure test to 2000 psi. RIH with 2" 00 GR and tag bridge plug at 7856' wireline and 7880' KB. POOH RIH with tandem temp/press gauges with well flowing to 4900'. From 4900' log at 40 fpm down to 7000' KB. Well flowing 480 mcfd at 748 psi. Stopped tool at 7000' KB while production unloaded approx 10 bbls of water from well. Log well from 7000' KB up to 4900 KB at 40 fpm and then POOH at regular speed. Well flowing 1 mmcfd at 757 psi after well was unloaded. RIH with 2.75 GR down to 7880 ' KB and tagged plug with well shut in. POOH RO Pollard lubricator and turn well back over to production. 12/7/04 Cleaned snow off location. WBI deliver R&K tank. NOW deliver liner material. Peak set up berm area between HV # 3 and production office. Production broke down test package, Peak spotted tanks and WBI moved test equipment, Started hooking test package back up. Will finish rigging up tomorrow. Weather has been snowing on and off all day. 12/8/04 Finished moving and installing test equipment. Rig up flair. Working on containment dike, Petro Marine pumped diesel from fuel tank by production office put into our generator tank. WBI hauled in 4 tanks spotted on location. Rain for rent will haul in the 5th tank in the morning when they come down to hook up tanks. They will also bring fittings to set up to test steam coils with air. Plowed snow from location clean up for frac equipment rig up. 12/9/04 Flowing Well PJSM, Rig up Schlumberger lubricator, work on test pump (froze up) and pressure test to 2500 psi. RIH with Halliburton 2.69" FasOril BP. Tie into SCMT log dated 8-8-04. Set BP at 5540'. Got good indication of set. Picked up and went back down and tagged bridge plug. Tools hung up at 4056' (seal assy) Worked tools for about 20 minutes and finally came free. POOH Rig down Schlumberger lubricator and turn well over to production. Production flowed well to sales. Well making steady 500 mcfd with 740 psi FTP from the B-40 Sand alone. 12/10/04 Finished riggiri"g up Rain for rent tanks, United Rental delivered and hooked up glycol heater to tanks. Set portable generator next to heater and tied in. WBI brought 25 pallets Baroid jell. Finished doing snow and pad cleaning. Received last load of sand for BJ. 12/11/04 Finished filling Rain for Rent tanks, RO plowed snow and graded Oil well road We set up a pick up to control traffic coming from caribou hill while moving in equipment. WBI and BJ hauled in BJ Frac equipment. Held PJSM and site orientation Drilling/ Production with BJ. BJ spotted and started rigging up equipment and loaded sand. 12/12/04 Snowing and blowing again this morning had crew plowing road from highway to pad to open up for hauling in the rest of BJ equipment. Cleaned snow from pad. Worked with production to install valve on HV-A08 tree. BJ finished spotting equipment blowing off sand from bulkers and unloaded flex sand into unit. They have hauled in and spotted all their equipment. Used safety precautions on moving equipment in onto location on Oilwell RO, 12/13/04 Called RO Services out early to grade road Snowed 10". Peak running loader to clean off snow from pad hard to keep up with. Held a PJSM with BJ. BJ continue to rig up dumped sacks to add to water tanks KCL. Have loader working at NNA to open an equipment staging area. Vetco brought out SSV and greased HV-A08 & HV-A09 trees plus HV-A04. Called Steam on wheels out to heat up water tanks. HV-08 (AFE 163122) morning report summary, CONFIDENTIAL: last revised 3/11/2005, Page 1. ccØfflÐENTIAL 12/14/04 . . PJSM with BJ and Peak ( stressed all hands to use ice cleats) BJ finished spotting equipment and heaters, Hammer up all iron. PTS delivered iron rack and sand buster. Steam on wheels rigged up to pre heat tanks. Peak finished plowing snow and help spot tanks and equipment. United Rental unhooked glycol lines keep in place to hook back up. Rigged up hard line to HV-A08. 12/15/04 Continued heating frac tanks using Steam on Wheels. MI BJ frac crew. Conduct PJSM. Troubleshoot BJ generator in frac van and problems with data communications. Got the generator back up, but unable to monitor or record chemical additives rates in frac van due to communication problem. Still able to monitor chem-add rates at the pumping unit. Verified that flowline valves were closed on the tree. Pressure test frac line to 6450 psi using KCI water. Casing pressure = 970 psi. Open well up, SITP = 940 psi. Bullhead 45 bblof 6% KCI + additives at 8 bpm to load hole. Shut down briefly, then resuming pumping 6% KCI at 17.5 bpm with 3500 psi TP. Pump 45 bbl of KCI, then shut down for minifrac. ISIP = 'S43 psi. During shut-down, blend gel in pre-hydration tank. BJ pump #4 out of commission due to broken hydraulic line. Begin pumping 119 bbl of pad using Lightning 2000 gel system + additives at 18.3 bpm with 2170 psi TP. Pumped 103,000 Ibs of 20/40 Ottawa Sand + Flexsand MSE staged from 2 to 8 ppa in 460 bbl of BJ Lightning 2000 frac gel. Placed 100% of design. Average treating pressure was 2200 psi at 19.7 bpm. Proppant was tagged with Ir-192 in 2-6 ppa stage and Sc-46 in 8 ppa proppant stages using Zerowash radioactive tracer. Tagged gelled fluids with SpectraChem chemical tracer. Displaced with 51 bblof KCI. ISIP = 982 psi, 5-minute = 936 psi. Load to recover = 769 bbl. RD frac lines from well HV-8 and move to HV- 9. Steam-on-Wheels continuing to heat frac tanks. Leave well HV-8 shut-in. NU tree cap and pump methanol into tree to freeze protect. No activity. 12/17/04 No activity. Lay 50'x100' liner for coil tubing. MIRU Schlumberger 1-3/4" coil tubing and nitrogen unit on HV~8. NU BOPE. Stab pipe and MU coil connector. Loaded nitrogen tanks. Installed 3" pneumatic SSV and 1502 companion flange on temporary flowline. SDFN. 12/18/04 PTS flowback hands arrived. Conduct site orientation with hands. Conduct PJSM with BJ frac crew. RU sand buster and flowline to SSV. RU sand buster dump line to Atigun 200-bbl open top tank. RU bypass line aro,l.md sand buster. Schlumberger coil crew arrives. Shortly after ·arriving, Schlumberger discovered thèy are unable to move reel due to problematic hydraulic pump. Worked to diagnose and repair problem without success. RÙ suction line and centrifugal pump from Rain-for-Rent tanks. Truck arrived with replacement equipment for Schlumberger coil unit. 12/19/04 Install backup hydraulics pump to power Schlumberger reel. Fill 1-3/4" coil reel with KCI water. Test BOPE to 300/3000 psi. Test sand buster and flowline to choke manifold to 300/3000 psi as well. PU injector head. Install BHA consisting of 2.70" 00, 5-blade, concave mill, 2.86" 00 watermelon mill, 4' straight bar, 2-3/8" XP motor, and MHA (23' overall length). SITP = 90 psi. RIH circulating minimum rate, but getting no returns. At 3800', raise rate to 0.75 bpm and RIH at 30 fpm. Work coil tubing down/up twice 3900' - 4100' around seal bore assembly, but did not encounter any obstruction. Continue in hole, began getting returns in Johnson tank. Tag Fasdrill bridge plug at 5551' CTM, increase rate to 1.2 bpm. Mill on plug but motor stalling. Experiencing some problems and downtime due to the backup hydraulic pump installed earlier. RIH circulating 1.2 bpm. Continue in hole to 6500'. Hydraulic pump down a second time for about 15 minutes. Got it back, but shortly afterward a hose on the hydraulic pump split. POOH while circulating at 0.4 bpm. Schlumberger OOH. LD motor and mills. NU injector head again, purge reel with nitrogen. Stand back injector head and secure well. Suck out and RD suction lines. Release Schlumberger coil crew. RD SSV and temporary flowline off of well HV-S to move to HV-9. Recover fluids from Johnson tank, transfer to source fluid tank. Pump methanol in HV-9 tree to freeze protect. Secure well. Shut down waiting on Schlumberger to replace hydraulic pump on reel motor. Two Schlumberger mechanics onsite at 19:00 hrs to evaluate unit. 12/21/04 HV-08 (AFE 163122) morning report summary, CONFIDENTIAL: last revised 3/11/2005, Page 2. CONFIDENTIAL ~o activity. Schlumberger crew arri.RDMO coil tubing equipment. Vetco re-gAd all valves on tree and installed tree cap. Secure well. Clear snow off of liner. Roll up and remove liner. SDFN 12/22/04 BJ moved off HV-A09 Rigged up coil on HV-A08. Coil unit rigged up stood down until next week. Peak continued to help with Coil rig up. Cleaned location, set up tank dike area for rain for rent tanks. Was decided in anchorage to Suspend coil on HV. A08 till 12-27-04 12/27/04 Operations on hold until test on H.V. A09 is complete. PTSM, Peak Support clear out location Install bullrail around HV-A09. Clear Test area and well area. P/U test line laid from HV-A09 test. PJSM,PJCL, B.J. on location Dig Out, Start Up Equipment Fill Nitrogen tank Heat up spool frozen to btm. of carrier. P/U rizer. PTS on location rig up test iron and bypass for drill out. R/U sand separator. Test BOP equip. Fill Coil; Test all equipment 300/3000psi. Test lines to choke skid, All test O.K. . 12/28/04 Finish Pressure test of BOP - Make up Coil tubing clean our assembly(2.8 Mill with 2 1/8" mtr) - Shell test - RIH with BJ coil pumping at 1/4bbl/min - Had to work by two spots at 7,780 &7,793CTM - Tagged plug at 7,881 - Drilled out # 2 plug. Continue down hole tagged at 8,817 CTM (+/- 10' above Landing Collar Pump bottoms up Stop pump drop ball, started to pump and land ball. Tool shifted @ 3500psi, decrease pump. Move pipe 20' up decrease fluid. Shut down fluid, pump N2, RIH 20'. Move pipe up 20',20 bbls back PUH N2 to receiver O.O.H. bleed off N2 Rig down injector secure well site shut and lock blind rams night cap on BOP. Flow well through sand buster and choke. Had trouble with sand buster sanding off. Had to shut in buster and clean out ,«ith super sucker. Turn over to production testers. Peak continue to pull fluid from Johnsol) to NNA storage tanks. Well flowing 1 mmcf @ 5:30 pm tubing pressure 125 psi making approx 20 bbls per hr. Production continue to test well Peak hauling fluid and cleaning location. Well flowing 1.8 mmcf @ 4:00 am tubing pressure psi 1 SO making approx 7.5 bbls per hr 12/29/04 Production continue to test and flow well. Unloading well @ 4:00 am tubing @ 180 psi rate 1873 mmçf 7.4 bbls water. Peak cleaning location hauling fluid to tanks at NNA. Well turned'over to production @ 11.30 am tubing pressure 625 psi, rate 2040 mmcf 5 bbl/hr fluids. Peak continue to support operations. BJ on site finish rigging down and demobing coil equipment. BJ frac crew demobing frac equipment from NNA site. Cleaning up location and shipping off drilling support equipment. Cancelled Peak night crew will go to days as of tomorrow. 12/30/04 Operating days only PJSM Peak / Pollard, set up pollard to inject production fluid from Rain For Rent tanks @ NNA. Hauled the balance of fluid from storage tanks at HV to NNA tanks. Disassembled tank dike shipped Rain For Rent tanks to S&R to be cleaned. Unhooked United tank heater and gen set shipped back. clean off snow from liner and pick up liner around # 8 well. Continue to clean location. Veco picked up crane. Talked with Glen brown on NNA temp survey. 12/31/04 Clean out conexs load on trailers to ship to EFDF. Clean up timbers from snow piles load to send to NNA for storage, Load Peak equipment. Will stand down until Monday @ 7:00 am. 1/3/05 PJSM Simops Peak / Production. Load trailers with Lincoln logs, 10x10, limber and liner material sent to NNA for storage. Unloaded trailers and stacked material. Ship WBI trailers drilling support equipment to OSK. Peak picked up camp unit and peak equipment. Cleaned location dug liner and boards out of snow piles. S&R finished cleaning rain for rent tanks delivered wash water back to NNA storage tanks. HV-08 (AFE 163122) morning report summary, CONFIDENTIAL: last revised 3/11/2005, Page 3. CONFIDENTIAL . . . . 1/4/05 No operations Finished hauling liner, timbers, from HV to NNA for storage. Clean locations both HVand NNA. Sent back all dumpsters. Boxed up copier, printer, fax, camera, to go to OSK drilling office. Boxed up computers sent to OSK to ship to IT. Turned location and drilling trailer over to Production. All associated cost to date 2/1/05 Well producing approximately 1812 mcfd with 24 bwpd at 692 psi FTP. MIRU slickline. Thaw tree cap. Pressure test lubricator to 3000 psi. RIH with 2.5" gauge ring with well flowing. Set down at 8285'. Worked through and continued in hole to 8450'. Didn't set down but decided to POOH because having 1600 Ibs of PU weight due to tool drag. Tools pulled clean at 8285'. Appears that we broke through some sand bridges at 8285' and 8450'. Continue POOH. LD slickline tools. After POOH, the well unloaded a bunch of water and the rate increased to 2.8 mmcfd. SDFN 2/2/05 SDFN. Well producing 1842 mcfd and 30 bwpd with 698 psi FTP. RU slickline. Noticed that wire above the rope socket was pig-tailed from yesterday's gauge ring run. Strip off 50' of wire and rehead. Pressure test to 3000 psi. RIH with Protechnics logging tool, set down in tree. POOH. Pump methanol to clear ice from the tree. RIH with Protechnics spectral gamma ray log for detecting radioactive tracer. Tools falling slowly. Log at 30 fpm from 6200' to 4200'. POOH. Download log data - good. Notice that wire above the rope socket was again pigtailed. Discuss whether to run the production log which is longer and weighs less than the tracer log. Decide to cancel the slickline PL T. RDMO slickline. Well producing to sales. HV-08 (AFE 163122) morning report summary, CONFIDENTIAL: last revised 3/11/2005, Page 4. CONFIDENTIAL a STATE OF ALASKA a ALAð OIL AND GAS CONSERVATION COM~ION Fie REPORT OF SUNDRY WELL OPERATIONS .... 1. Operations Abandon U Repair Well U Performed: Alter Casing D Pull Tubing D Change Approved Program D Opera!. Shutdown D 2. Operator Union Oil Company of California Name: 3. Address: 27 Z005 Stimulate [J..o....... .0. ....Ot~.e.~. W ,,'n~~II~~~~~;String WaiverD.i'I'!mà!;xtE!nS1ön[9;¡¡J. \.;0,..",.·· Re-ente;S~~pended ~!gf.,ç;;:; 5. Permit to Drill Number: Exploratory D 204-114 Service D 6. API Number: 50-231-20023 9. Well Name and Number: HV-A08 10. Field/Pool(s): Happy Valley Field/Beluga, Tyonek Plug Perforations lJ Perforate New Pool D Perforate D 4. Current Well Class: Development 0 Stratigraphic D PO Box 196247, Anchorage, AK 99519 7. KB Elevation (ft): 739' 8. Property Designation: Happy Valley Production Facility 11. Present Well Condition Summary: Total Depth measured 8,900 feet true vertical 6,734 feet Effective Depth measured 8,828 feet true vertical 6,666 feet Casing Length Size MD Structural Conductor 111 ' 16" 111 ' Surface 1,194' 9-5/8" 1,194' Intermediate 4,168' 7" 4,168' Production Liner 4,876' 3-1/2" 8,897' Perforation depth: Measured depth: 4,972' to 8,581' True Vertical depth: 3,251' to 6,434' Tubing: (size, grade, and measured depth) Plugs (measured) n/a Junk (measured) nla TVD Burst Collapse 110' 1,130' 5,750 psi 3,090 psi 2,630' 7,240 psi 5,410 psi 6,731' 3-1/2", 9.2# L-80 @ 4,055' Packers and SSSV (type and measured depth) Baker ZXP packer, flexlock liner hanger and 80-40 seal bore @ 4,021' 12. Stimulatiòn or cement squeeze summary: Intervals treated (measured): nla Treatment descriptions including volumes used and final pressure: nla 13. Oil-Bbl Representative Daily Average Production or Injection Data Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure 800 800 Prior to well operation: Subsequent to operation: 14. Attachments: Copies of Logs and Surveys Run Daily Report of Well Operations 2000 2000 15. Well Class after proposed work: Exploratory ~ Development M 16. Well Status after proposed work: oilD Gas 0 WAG D 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact J. Gary Eller, 907-263-7848 Printed Name Timothy C. Brandenburg s;gMwœo/Cþ ;7/ Service n GINJ D WINJ D WDSPL D SUndry Number or N/A if C.O. Exempt: Title Drilling Manager Phone 907-276-7600 Date .5'- 25 -os ORIGINAL RBDMS 8Ft'UN 06 2DD5 Form 10-404 Revised 04/2004 Submit Original Only " Field Name API/UWI Happy Valley Field 50-231-20023 C-061590 I Primary Wellbore Affected Original Hole Primary Job Type Other Stimulation Jobs AFE No. QC Eng 163827 Daily Operations 4/21/200507:30 - 4/22/200500:00 Operations Summary Shut in well. Bail sand to 8535'. 4/22/200500:00 - 4/23/2005 00:00 Operations Summary Eontinue slickline bailing operations down to 8584' 4/25/200500:00 - 4/26/200500:00 . Operations Summary . Prep DynaCoil capillary unit. 4/26/200500:00 - 4/27/200500:00 Operations Summary ~nstall check valve and BHA on 1/4" capillary string. RIH with capillary to 8239', Set slips and packoff, spool off extra capillary tube, I -. . API: 50-231-20023 AOGCC: 204-114 1324' FSL, 1203'FEL Sec22, T2S, R13W, S.M. RT-THF: 23.9' Tbg lift threads - 3W' IBT Tree cxn - 2W' Bowen cxn Production Tubino: 3%", 9.2 ppf, L-80, IBT-Mod to 4055' - Annulus loaded with fresh water plus Baracor 100 corrosion inhibitor Completion - Capillary injection string (0.25" 00, 0.035" wall, duplex SS) run to 8239' (4/26/05) - Chemical injection sidepocket mandrel at 2501' (Macco SFO-1C-I) with 1/4", 0.049" wall SS chemical injection line - Locator sub @4027' - Baker 80-40 seal assembly 17' of 4.00" 00 seals - Muleshoe at 4055' NOTE: Slickline had problem hanging up at 4056' when running square-shoulder tool (8/15 & 12/9/04). Stimulation: Frac stimulated B-40 perfs (5235' - 5304' gross) on 12/15/04 with 103,000 Ibs of 20/40 sand in BJ Ughtning-2000 gel. Junk/Fill: - Slickline bailed sand at 8589' (3/8/05) Directional Data: max hole angle = 65.9 deg at 2877' KOP = 175' max doglegs = 6.0 deg/100' at 4313' 5.7 deg/100' at 1304' 8.0 deg/100' at 236' HV-8 Actual schematic 5-19-2005 ~ z ~ ~?1~ PBTD = 8828' TO = 8900' ... I z ~ . Well Name: Happy Valley ADa Field: Deep Creek Unit State: Alaska ',conductor: 16",82.77 ppf, K-55 to 111 ' ~ Surface Casino: 9%", 40 ppf, L-80, BTC to 1194' Cmnt with 67 bbl of 12.8 ppg lead and 31 bbl of 15.8 ppg tail "G" Intermediate Casino: 7", 26 ppf, L-80, 6TC-Mod to 4168' Cmnt with 71 bbl of 12.8 ppg LiteCrete lead and 15 bbl of 15.8 ppg "G" tail. Open Perfs: B-31: 4972' - 4988' (6 spf, 3/9/05) B-40: 5235' - 5244' (6 spf, 8/17104) B-40: 5254' - 5262' (6 spf, 8/17104) 6-40: 5295' - 5304' (6 spf, 8/17104) 6-45: 5694' - 5718' (6 spf, 8/26/04) B-45: 5729' - 5749' (6 spf, 8/26/04) 6-50: 6073' - 6083' (6 spf, 8/17104) 6-50: 6100' - 6110' (6 spf, 8/17104) B-50: 6116' - 6124' (6 spf, 8/17104) 6-50: 6128' - 6134' (6 spf, 8/17/04) 6-65: 6504' - 6518' (6 spf, 8/26/04) B-80: 6738' - 6748' (6 spf, 8/26/04) 6-80: 6759' - 6765' (6 spf, 8/26104) 6-80: 6772' - 6782' (6 spf, 8/15/04) 6-80: 6791' - 6801' (6 spf, 8/26/04) 6-100: 7248' - 7262' (6 spf, 3/9/05) T-1: 7910' - 7930' (6 spf, 8/11/04) T-1: 7949' - 7959' (6 spf, 8/11/04) T-6: 8247' - 8277' (6 spf, 8/11/04) T-66: 8336' - 8354' (6 spf, 3/9/05) T-7: 8393' - 8404' (6 spf, 8/11/04) T-10: 8541' - 8581' (6 spf, 8/9/04) Production Liner: 3Y2", 9.2 ppf, L-80, 16T-Mod liner from 4021' - 8897' Baker ZXP packer, Flexlock liner hanger & 80-40 sealbore at 4021' Cemented with 145 bbl of 12.0 ppg Litecrete Updated by: JGE . STATE OF ALASKA ALAS IL AND GAS CONSERVATION COMMI.N REPORT OF SUNDRY WELL OPERA'iTONS RECEIVED APR 1 2 Z005 1. Operations Abandon U Repair Well U Performed: Alter Casing 0 Pull Tubing 0 Change Approved Program 0 Operat. Shutdown 0 2. Operator Union Oil Company of California Name: 3. Address: PO Box 196247, Anchorage, AK 99519 7. KB Elevation (ft): 738.5' MSL 8. Property Designation: Happy Valley 11. Present Well Condition Summary: Total Depth measured 8,900' feet true vertical 6,734' feet Effective Depth measured 7,881' feet true vertical 5,787' feet Casing Length Size Structural Conductor 111 16" Surface 1194 9-5/8" Intermediate 4168 7" Production Liner 4876 3-1/2" Perforation depth: Measured depth: 4,972 - 8,581' True Vertical depth: 3,251 - 6,435' Tubing: (size, grade, and measured depth) Packers and SSSV (type and measured depth) 12. Stimulation or cement squeeze summary: Intervals treated (measured): n/a Treatment descriptions including volumes used and final pressure: Stimulate [J Alask8>titlr~aS Gons, Commission WaiverD Time Extension [jnchorage Re-enter Suspended Well 0 5. Permit to Drill Number: Exploratory 0 204-114 Service 0 6. API Number: 50-231-20023 9. Well Name and Number: HV-A08 10. Field/Pool(s): Deep Creek Unit Plug Perforations U Perforate New Pool 0 Perforate 0 4. Current Well Class: Development 0 Stratigraphic 0 Plugs (measured) n/a Junk (measured) n/a MD rvD Burst Collapse 111 111 n/a nla 1194 1130 5750 psi 3090 psi 4168 2631 7240 psi 5410 psi 4021' - 8897' 2544' - 6731' 10,160 psi 10,530 psi 3-1/2" 4,055' L-80 Baker ZXP Liner top packer @ 4,021' Prior to well operation: Subsequent to operation: 14. Attachments: Copies of Logs and Surveys Run Daily Report of Well Operations Representative Daily Average Production or Injection Data Gas-Met Water-Bbl Casing Pressure 725 20 0 1,040 15 0 15. Well Class after proposed work: Exploratory n Development f7L 16. Well Status after proposed work: OilD Gas 0 WAG 0 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 13. Oil-Bbl nla nla x Contact Gary Eller 263-7848 Printed Name Timothy C. Bra~ndenburg ~ ·""/-7· / ~ .... Signature · y /- Form 10-404 Revised 04/2004 Tubing Pressure 725 754 Service n GINJ 0 WINJ 0 WDSPL 0 SUndry Number or N/A if C.O. Exempt: 305-064 Title Drilling Manager Phone 907-276-7600 Date 4/9/2005 RBDMS BFl APR J 3 2005 C)r~IGlr~AL Submit Original Only 3/8/05 . . No operations. PJSM, RU Pollard slickline and lubricator and pressure test to 2,500 psi. (Shut in pressure is 1,075 psi). RIH with 2.75" GR. Get pick up wt every 1,000'. Worked through bridges from 8,247'-8,277',8,393'-8,404' (RKB). Worked from 8,541'-8,581' for about 30 minutes and could not get deeper than 8,582'. Had 1,000 Ib drag from 8,541'-8,581'. Wt dropped back to normal at 8,540'. Pumped 10 gal of diesel before starting in hole. Pulled tools. Found scratch marks on GR. Call town and was told to run 2.25" drive down bailer and get a sample. RIH with 2.25" bailer (4' long) down to 8,582'. Bailed to 8,589'. Had 1,000 Ib overpull. POH. Bailer was full of what looked like frac sand.RIH with 20' of 2-1/2" dummy guns down to 8,450'. No excessive drag. POH (Sand was all over the dummy guns). RD Pollard and turn over to production. 3/9/05 No operations. PJSM. RU Schlumberger wireline and lubricator. Pressure test to 2,500 psi. RIH with 2-1/2",6 spf, 60 degree phase, 18' long perf gun with GR tool. Tie in to SCMT log, 8-8-04. Stop tools at 7000'. Draw down well head pressure from 1,075 psi to 750 psi. GR stop working at 8,000'. Spotted gun from 8,334' to 8,352' and fired gun. Well flowing 2.2 mcfd before and 2.8 mcfd after perf shot. WHP stayed the same after perf. POH. Well flowing 4.3 mcfd after well unloaded approx 7 bbls water. All guns fired. RIH with 2 1/2", 6 spf, 60 degree phase, 14' long perf gun. Tie in to SCMT log, 8-8-04. WHP 750 psi, flowing 2.5 mcfd. Spotted perf gun from 7,245' to 7,259' and fired gun. Still same WHP and flow rate. POH. All guns fired. Well unloaded approx 7 bbls. RIH with 2", 6 spf, 60 degree phase, 16' long perf gun. Tie into SCMT log 8-8-04. WHP 750 psi, flowing 2.47 mcfd. Spotted perf gun from 4,964' to 4,980'. Fired gun and WHP the same and flow was 2.5 mcfd. POH. All guns fired. Well unloaded 2.5 bbls water. Flow 2.7 mcfd. RD Schlumberger and turn well over to production. 3/10/05 No activity. DSM on location, meet with night production operator, blow down well increase gas rate. Well HV A- 08 producing 1,667 mcfd and 28 bwpd with 750 psi FTP. Well slugging with gas rate ranging from 1.3 to 2.2 mmcfd during production log. Location walk-a-round, Simops with day production crew. Pollard on location, PJSM, RU Pollard, pressure test lubricator to 3,200 psi. Pollard RIH with 2.75 GR, getting up weights every 1,000'. Had some problems working up through packer assembly, RIH tagged fluid at 8,072 RKB, set down on bridges at 8,462 and 8,492, Tagged fill at 8,544' RKB. MU Schlumberger PL T to Pollard slickline and RIH to 8,042' RKB, log up to 4,800' at 60 FPM. Schlumberger encoder not working properly, recalibrated to Pollard counter wheel. Log down to 8,000' and back up to 4,800' at 60 FPM. Log down to 8,000' and back up to 4,800' at 90 FPM. Log down to 8,000' and back up to 4,800' at 120 FPM. RIH making 5-minute stationary stops at 4,922', 5,185',5,644',6,023',6,454',6,688',7,198' and 7,860'. RIH to 7,900'. Log down to 8,450' and back up to 7,900' at 60 FPM. Log down to 8,450' and back up to 7,900' at 90 FPM. Log down to 8,450' and back up to 7,900' at 120 FPM. RIH to 8,450', POH making 5-minute stationary stops at 8,450',8,343', 8,286' and 8,197'. POH. LD toolstring, RD wireline. HV-A08 (AFE 163767) morning report summary, CONFIDENTIAL: last revised 4/11/2005, Page 1. . API: 50-231-20023 AOGCC: 204-114 1324'FSL,1203'FEL Sec22,T2S,R13VV,S.M. RT-THF: 23.9' Tbg lift threads - 3%" IBT Tree cxn - 2%" Bowen cxn Production TubinQ: 3%", 9.2 ppf, L-80, IBT-Mod to 4055' - Annulus loaded with fresh water plus Baracor 100 corrosion inhibitor Completion - Chemical injection sidepocket mandrel at 2501' (Macco SFO-1C-I) with 1/4", 0.049" wall SS chemical injection line - Locator sub @4027' - Baker 80-40 seal assembly 17' of 4.00" OD seals - Muleshoe at 4055' NOTE: Slickline had problem hanging up at 4056' when running square-shoulder tool (a/15 & 12/9/04). Stimulation: Frac stimulated B-40 perfs (5235' - 5304' gross) on 12/15/04 with 103,000 Ibs of 20/40 sand in BJ Lightning-2000 gel. Junk/Fill: - Slickline bailed sand at 8589' (3/8/05) Directional Data: max hole angle = 65.9 deg at 2877' KOP = 175' max doglegs = 6.0 deg/100' at 4313' 5.7 deg/100' at 1304' 8.0 deg/100' at 236' HV-8 Actual schematic 3-10-2005 ~ z ~ ... z ... "'"'--" ~<:::... PBTD = 8828' TO = 8900' . Well Name: Happy Valley #8 Field: Deep Creek Unit State: Alaska '¡COnductor: 16", 82.77 ppf, K-55 to 111' ~ Surface CasinQ: 9%", 40 ppf, L-80, BTC to 1194' Cmnt with 67 bbl of 12.8 ppg lead and 31 bbl of 15.8 ppg tail "G" Intermediate CasinQ: 7", 26 ppf, L-80, BTC-Mod to 4168' Cmnt with 71 bbl of 12.8 ppg LiteCrete lead and 15 bbl of 15.8 ppg "G" tail. Open Perfs: B-31: 4972' - 4988' (6 spf, 3/9/05) B-40: 5235' - 5244' (6 spf, 8/17104) B-40: 5254' - 5262' (6 spf, 8/17/04) B-40: 5295' - 5304' (6 spf, 8/17/04) B-45: 5694' - 5718' (6 spf, 8/26/04) B-45: 5729' - 5749' (6 spf, 8/26/04) B-50: 6073' - 6083' (6 spf, 8/17/04) B-50: 6100' - 6110' (6 spf, 8/17/04) B-50: 6116' - 6124' (6 spf, 8/17104) B-50: 6128' - 6134' (6 spf, 8/17/04) B-65: 6504' - 6518' (6 spf, 8/26/04) B-80: 6738' - 6748' (6 spf, 8/26/04) B-80: 6759' - 6765' (6 spf, 8/26/04) B-80: 6772' - 6782' (6 spf, 8/15/04) B-80: 6791' - 6801' (6 spf, 8/26/04) B-100: 7248' - 7262' (6 spf, 3/9/05) T-1: 7910' -7930' (6 spf, 8/11/04) T -1: 7949' - 7959' (6 spf, 8/11/04) T-6: 8247' - 8277' (6 spf, 8/11/04) T-6B: 8336' - 8354' (6 spf, 3/9/05) T-7: 8393' - 8404' (6 spf, 8/11/04) T-10: 8541' - 8581' (6 spf, 8/9/04) Production Liner: 3%", 9.2 ppf, L-80, IBT-Mod liner from 4021' - 8897' Baker ZXP packer, Flexlock liner hanger & 80-40 sealbore at 4021' Cemented with 145 bbl of 12.0 ppg Litecrete Updated by: JGE . STATE OF ALASKA ALA. OIL AND GAS CONSERVATION COMNA>1i.. REPORT OF SUNDRY WELL OPERA~£EIVED U Stimulate U MAR 1 fu¡£~ D Waiver D Time Extension D D A~iif6lH.ciøMet1Rmthi";Qn 5. P'tMfie~Number: ExploratoryD 204-114 Service D 6. API Number: 50-231-20023 9. Well Name and Number: HV-A08 10. Field/Pool(s): Deep Creek Unit 1. Operations Abandon U Repair Well U Performed: Alter Casing D Pull Tubing D _ Change Approved Program D Operat. Shutdown D 2. Operator Union Oil Company of California Name: 3. Address: PO Box 196247, Anchorage, AK 99519 7. KB Elevation (ft): 738.5' MSL 8. Property Designation: Happy Valley 11. Present Well Condition Summary: Total Depth measured 8,900' feet true vertical 6,734' feet Effective Depth measured 7,881' feet true vertical 5,787' feet Casing Length Size Structural Conductor 111 16" Surface 1194 9-5/8 " Intermediate 4168 7" Production Liner 4876 3-1/2" Perforation depth: Measured depth: 5,235 - 8,581' True Vertical depth: 3,477 - 6,435' Tubing: (size, grade, and measured depth) Packers and SSSV (type and measured depth) Plug Perforations Perforate New Pool Perforate 4. Current Well Class: Development 0 Stratigraphic D Plugs (measured) n/a Junk (measured) n/a MD rvD Burst Collapse 111 111 nla nla 1194 1130 5750 psi 3090 psi 4168 2631 7240 psi 5410 psi 4021' - 8897' 2544' - 6731' 10,160 psi 10,530 psi 3-1/2" L-80 4,055' Baker ZXP Liner top packer @ 4,021' 12. Stimulation or cement squeeze summary: Intervals treated (measured): Frac stimulated B-40 perfs (5,235 to 5,304' gross) on 12/15/04 with 103,000 Ibs of 20/40 sand in 20# borate gel. ISIP = 982 psi. Treatment descriptions including volumes used and final pressure: Prior to well operation: nla Subsequent to operation: n/a 14. Attachments: Copies of Logs and Surveys Run Daily Report of Well Operations Representative Daily Average Production or Injection Data Gas-Mcf Water-Bbl Casing Pressure 1,600 nla nla 2,218 0 900 15. Well Class after proposed work: Exploratory n Development fJl 16. Well Status after proposed work: oilD Gas 0 WAG D 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 13. Oil-Bbl x Contact Gary Eller 263-7848 Printed Name Timothy C. Brandenburg S~"""~ ¿ {j}c/ ;:7 Form 10-404 Revised 04/2004 Tubing Pressure 750 700 Service n GINJ D WINJ D WDSPL 0 SUndry Number or N/A if C.O. Exempt: 304-467 Title Drilling Manager Phone 907-276-7600 Date 3/11/2005 L CONFIDENTIAL RBDMS 8Fl MAR 1. 6 2005 Submit Original Only . API: 50-231-20023 AOGCC: 204-114 1324'FSL,1203'FEL Sec22, T2S,R13VV, S.M. RT-THF: 23.9' Tbg lift threads - 3%" IBT Tree cxn - 2%" Bowen cxn Production TubinQ: 3%", 9.2 ppf, L-80, IBT-Mod to 4055' - Annulus loaded with fresh water plus Baracor 100 corrosion inhibitor Completion - Chemical injection sidepocket mandrel at 2501' (Macco SFO-1C-I) with 1/4", 0.049" wall SS chemical injection line - Locator sub @4027' - Baker 80-40 seal assembly 17' of 4.00" OD seals - Muleshoe at 4055' NOTE: Slickline had problem hanging up at 4056' when running square-shoulder tool (a/15 & 12/9/04). Stimulation: Frac stimulated B-40 perfs (5235' - 5304' gross) on 12/15/04 with 103,000 Ibs of 20/40 sand in BJ Lightning-2000 gel. Junk/Fill: - Coil tubing washed to 8817' (12/28/04) Directional Data: max hole angle = 65.9 deg at 2877' KOP = 175' max doglegs = 6.0 deg/100' at 4313' 5.7 deg/100' at 1304' 8.0 deg/1 00' at 236' HV-8 Actual schematic 1-18-2005 ~ :g: ~ · · · · · · · · · · · · · · · ... z ~ PBTD = 8828' TD = 8900' .... ~ . Well Name: Happy Valley #8 Field: Deep Creek Unit State: Alaska I ¡COnductor: 16",82.77 ppf, K-55 to 111 ' ~ Surface CasinQ: 9%", 40 ppf, L-80, BTC to 1194' Cmnt with 67 bbl of 12.8 ppg lead and 31 bbl of 15.8 ppg tail "G" Intermediate CasinQ: 7", 26 ppf, L-80, BTC-Mod to 4168' Cmnt with 71 bbl of 12.8 ppg LiteCrete lead and 15 bbl of 15.8 ppg "G" tail. Open Perfs: B-40: 5235' - 5244' (6 spf, 8/17/04) B-40: 5254' - 5262' (6 spf, 8/17/04) B-40: 5295' - 5304' (6 spf, 8/17104) B-45: 5694' - 5718' (6 spf, 8/26/04) B-45: 5729' - 5749' (6 spf, 8/26/04) B-50: 6073' - 6083' (6 spf, 8/17/04) B-50: 6100' - 6110' (6 spf, 8/17/04) B-50: 6116' - 6124' (6 spf, 8/17/04) B-50: 6128' - 6134' (6 spf, 8/17/04) B-65: 6504' - 6518' (6 spf, 8/26/04) B-80: 6738' - 6748' (6 spf, 8/26/04) B-80: 6759' - 6765' (6 spf, 8/26/04) B-80: 6772' - 6782' (6 spf, 8/15/04) B-80: 6791' - 6801' (6 spf, 8/26/04) T-1: 7910' -7930' (6 spf, 8/11/04) T-1: 7949' - 7959' (6 spf, 8/11/04) T-6: 8247' - 8277' (6 spf, 8/11/04) T-7: 8393' - 8404' (6 spf, 8/11/04) T-10: 8541' - 8581' (6 spf, 8/9/04) Production Liner: 3%", 9.2 ppf, L-80, IBT-Mod liner from 4021' - 8897' Baker ZXP packer, Flexlock liner hanger & 80-40 sealbore at 4021' Cemented with 145 bbl of 12.0 ppg Litecrete CONFIDENTIAL Updated by: JGE 12/6/04 . . Producing well PJSM, spot Pollard wireline unit, rig up lubricator and pressure test to 2000 psi. RIH with 2" 00 GR and tag bridge plug at 7856' wireline and 7880' KB. POOH RIH with tandem temp/press gauges with well flowing to 4900'. From 4900' log at 40 fpm down to 7000' KB. Well flowing 480 mcfd at 748 psi. Stopped tool at 7000' KB while production unloaded approx 10 bbls of water from well. Log well from 7000' KB up to 4900 KB at 40 fpm and then POOH at regular speed. Well flowing 1 mmcfd at 757 psi after well was unloaded. RIH with 2.75 GR down to 7880 ' KB and tagged plug with well shut in. POOH RD Pollard lubricator and turn well back over to production. 12/7/04 Cleaned snow off location. WBI deliver R&K tank. NOW deliver liner material. Peak set up berm area between HV # 3 and production office. Production broke down test package, Peak spotted tanks and WBI moved test equipment, Started hooking test package back up. Will finish rigging up tomorrow. Weather has been snowing on and off all day. 12/8/04 Finished moving and installing test equipment. Rig up flair. Working on containment dike, Petro Marine pumped diesel from fuel tank by production office put into our generator tank. WBI hauled in 4 tanks spotted on location. Rain for rent will haul in the 5th tank in the morning when they come down to hook up tanks. They will also bring fittings to set up to test steam coils with air. Plowed snow from location clean up for frac equipment rig up. 12/9/04 Flowing Well PJSM, Rig up Schlumberger lubricator, work on test pump (froze up) and pressure test to 2500 psi. RIH with Halliburton 2.69" FasDril BP. Tie into SCMT log dated 8-8-04. Set BP at 5540'. Got good indication of set. Picked up and went back down and tagged bridge plug. Tools hung up at 4056' (seal assy) Worked tools for about 20 minutes and finally came free. POOH Rig down Schlumberger lubricator and turn well over to production. Production flowed well to sales. Well making steady 500 mcfd with 740 psi FTP from the B-40 Sand alone. 12/10/04 Finished rigging up Rain for rent tanks, United Rental delivered and hooked up glycol heater to tanks. Set portable generator next to heater and tied in. WBI brought 25 pallets Baroid jell. Finished doing snow and pad cleaning. Received last load of sand for BJ. 12/11/04 Finished filling Rain for Rent tanks, RD plowed snow and graded Oil well road We set up a pick up to control traffic coming from caribou hill while moving in equipment. WBI and BJ hauled in BJ Frac equipment. Held PJSM and site orientation Drilling/ Production with BJ. BJ spotted and started rigging up equipment and loaded sand. 12/12/04 Snowing and blowing again this morning had crew plowing road from highway to pad to open up for hauling in the rest of BJ equipment. Cleaned snow from pad. Worked with production to install valve on HV-A08 tree. BJ finished spotting equipment blowing off sand from bulkers and unloaded flex sand into unit. They have hauled in and spotted all their equipment. Used safety precautions on moving equipment in onto location on Oilwell RD. 12/13/04 Called RD Services out early to grade road Snowed 10". Peak running loader to clean off snow from pad hard to keep up with. Held a PJSM with BJ. BJ continue to rig up dumped sacks to add to water tanks KCL. Have loader working at NNA to open an equipment staging area. Vetco brought out SSV and greased HV-A08 & HV-A09 trees plus HV-A04. Called Steam on wheels out to heat up water tanks. HV-08 (AFE 163122) morning report summary, CONFIDENTIAL: last revised 3/11/2005, Page 1. C (ØNfijfJENTIAL 12/14/04 . . PJSM with BJ and Peak ( stressed all hands to use ice cleats) BJ finished spotting equipment and heaters, Hammer up all iron. PTS delivered iron rack and sand buster. Steam on wheels rigged up to pre heat tanks. Peak finished plowing snow and help spot tanks and equipment. United Rental unhooked glycol lines keep in place to hook back up. Rigged up hard line to HV-A08. 12/15/04 Continued heating frac tanks using Steam on Wheels. MI BJ frac crew. Conduct PJSM. Troubleshoot BJ generator in frac van and problems with data communications. Got the generator back up, but unable to monitor or record chemical additives rates in frac van due to communication problem. Still able to monitor chem-add rates at the pumping unit. Verified that flowline valves were closed on the tree. Pressure test frac line to 6450 psi using KCI water. Casing pressure = 970 psi. Open well up, SlIP = 940 psi. Bullhead 45 bbl of 6% KCI + additives at 8 bpm to load hole. Shut down briefly, then resuming pumping 6% KCI at 17.5 bpm with 3500 psi TP. Pump 45 bbl of KCI, then shut down for minifrac. ISIP = 843 psi. During shut-down, blend gel in pre-hydration tank. BJ pump #4 out of commission due to broken hydraulic line. Begin pumping 119 bbl of pad using Lightning 2000 gel system + additives at 18.3 bpm with 2170 psi TP. Pumped 103,000 Ibs of 20/40 Ottawa Sand + Flexsand MSE staged from 2 to 8 ppa in 460 bbl of BJ Lightning 2000 frac gel. Placed 100% of design. Average treating pressure was 2200 psi at 19.7 bpm. Proppant was tagged with Ir-192 in 2-6 ppa stage and Sc-46 in 8 ppa proppant stages using Zerowash radioactive tracer. Tagged gelled fluids with SpectraChem chemical tracer. Displaced with 51 bblof KCI. ISIP = 982 psi, 5-minute = 936 psi. Load to recover = 769 bbl. RD frac lines from well HV-8 and move to HV- 9. Steam-on-Wheels continuing to heat frac tanks. Leave well HV-8 shut-in. NU tree cap and pump methanol into tree to freeze protect. No activity. 12/17/04 No activity. Lay 50'x100' liner for coil tubing. MIRU Schlumberger 1-3/4" coil tubing and nitrogen unit on HV-8. NU BOPE. Stab pipe and MU coil connector. Loaded nitrogen tanks. Installed 3" pneumatic SSV and 1502 companion flange on temporary flowline. SDFN. 12/18/04 PTS flowback hands arrived. Conduct site orientation with hands. Conduct PJSM with BJ frac crew. RU sand buster and flowline to SSV. RU sand buster dump line to Atigun 200-bbl open top tank. RU bypass line around sand buster. Schlumberger coil crew arrives. Shortly after arriving, Schlumberger discovered they are unable to move reel due to problematic hydraulic pump. Worked to diagnose and repair problem without success. RU suction line and centrifugal pump from Rain-for-Rent tanks. Truck arrived with replacement equipment for Schlumberger coil unit. 12/19/04 Install backup hydraulics pump to power Schlumberger reel. Fill 1-3/4" coil reel with KCI water. Test BOPE to 300/3000 psi. Test sand buster and flowline to choke manifold to 300/3000 psi as well. PU injector head. Install BHA consisting of 2.70" OD, 5-blade, concave mill, 2.86" OD watermelon mill, 4' straight bar, 2-3/8" XP motor, and MHA (23' overall length). SITP = 90 psi. RIH circulating minimum rate, but getting no returns. At 3800', raise rate to 0.75 bpm and RIH at 30 fpm. Work coil tubing down/up twice 3900' - 4100' around seal bore assembly, but did not encounter any obstruction. Continue in hole, began getting returns in Johnson tank. Tag Fasdrill bridge plug at 5551' CTM, increase rate to 1.2 bpm. Mill on plug but motor stalling. Experiencing some problems and downtime due to the backup hydraulic pump installed earlier. RIH circulating 1.2 bpm. Continue in hole to 6500'. Hydraulic pump down a second time for about 15 minutes. Got it back, but shortly afterward a hose on the hydraulic pump split. POOH while circulating at 0.4 bpm. Schlumberger OOH. LD motor and mills. NU injector head again, purge reel with nitrogen. Stand back injector head and secure well. Suck out and RD suction lines. Release Schlumberger coil crew. RD SSV and temporary flowline off of well HV-8 to move to HV-9. Recover fluids from Johnson tank, transfer to source fluid tank. Pump methanol in HV-9 tree to freeze protect. Secure well. Shut down waiting on Schlumberger to replace hydraulic pump on reel motor. Two Schlumberger mechanics onsite at 19:00 hrs to evaluate unit. 12/21/04 HV-08 (AFE 163122) morning report summary, CONFIDENTIAL: last revised 3/11/2005, Page 2. CONFIDENTIAL , . . . No activity. Schlumberger crew arrives, RDMO coil tubing equipment. Vetco re-greased all valves on tree and installed tree cap. Secure well. Clear snow off of liner. Roll up and remove liner. SDFN 12/22/04 BJ moved off HV-A09 Rigged up coil on HV-A08. Coil unit rigged up stood down until next week. Peak continued to help with Coil rig up. Cleaned location, set up tank dike area for rain for rent tanks. Was decided in anchorage to Suspend coil on H.V. A08 till 12-27-04 12/27/04 Operations on hold until test on H.V. A09 is complete. PTSM, Peak Support clear out location Install bullrail around HV-A09. Clear Test area and well area. P/U test line laid from HV-A09 test. PJSM,PJCL, B.J. on location Dig Out, Start Up Equipment Fill Nitrogen tank Heat up spool frozen to btm. of carrier. P/U rizer. PTS on location rig up test iron and bypass for drill out. R/U sand separator. Test BOP equip. Fill Coil; Test all equipment 300/3000psi. Test lines to choke skid, All test O.K. 12/28/04 Finish Pressure test of BOP - Make up Coil tubing clean our assembly(2.8 Mill with 2 1/8" mtr) - Shell test - RIH with BJ coil pumping at 1/4bbl/min - Had to work by two spots at 7,780 &7,793CTM - Tagged plug at 7,881 - Drilled out # 2 plug. Continue down hole tagged at 8,817 CTM (+/- 10' above Landing Collar Pump bottoms up Stop pump drop ball, started to pump and land ball. Tool shifted @ 3500psi, decrease pump. Move pipe 20' up decrease fluid. Shut down fluid, pump N2, RIH 20'. Move pipe up 20',20 bbls back PUH N2 to receiver O.O.H. bleed off N2 Rig down injector secure well site shut and lock blind rams night cap on BOP. Flow well through sand buster and choke. Had trouble with sand buster sanding off. Had to shut in buster and clean out with super sucker. Turn over to production testers. Peak continue to pull fluid from Johnson to NNA storage tanks. Well flowing 1 mmcf @ 5:30 pm tubing pressure 125 psi making approx 20 bbls per hr. Production continue to test well Peak hauling fluid and cleaning location. Well flowing 1.8 mmcf @ 4:00 am tubing pressure psi 180 making approx 7.5 bbls per hr 12/29/04 Production continue to test and flow well. Unloading well @ 4:00 am tubing @ 180 psi rate 1873 mmcf 7.4 bbls water. Peak cleaning location hauling fluid to tanks at NNA. Well turned over to production @ 11.30 am tubing pressure 625 psi, rate 2040 mmcf 5 bbl/hr fluids. Peak continue to support operations. BJ on site finish rigging down and demobing coil equipment. BJ frac crew demobing frac equipment from NNA site. Cleaning up location and shipping off drilling support equipment. Cancelled Peak night crew will go to days as of tomorrow. 12/30/04 Operating days only PJSM Peak / Pollard, set up pollard to inject production fluid from Rain For Rent tanks @ NNA. Hauled the balance of fluid from storage tanks at HV to NNA tanks. Disassembled tank dike shipped Rain For Rent tanks to S&R to be cleaned. Unhooked United tank heater and gen set shipped back. clean off snow from liner and pick up liner around # 8 well. Continue to clean location. Veco picked up crane. Talked with Glen brown on NNA temp survey. 12/31/04 Clean out conexs load on trailers to ship to EFDF. Clean up timbers from snow piles load to send to NNA for storage, Load Peak equipment. Will stand down until Monday @ 7:00 am. 1/3/05 PJSM Simops Peak / Production. Load trailers with Lincoln logs, 10x10, limber and liner material sent to NNA for storage. Unloaded trailers and stacked material. Ship WBI trailers drilling support equipment to aSK. Peak picked up camp unit and peak equipment. Cleaned location dug liner and boards out of snow piles. S&R finished cleaning rain for rent tanks delivered wash water back to NNA storage tanks. HV-08 (AFE 163122) morning report summary, CONFIDENTIAL: last revised 3/11/2005, Page 3. CONFIDENTIAL . . 1/4/05 No operations Finished hauling liner, timbers, from HV to NNA for storage. Clean locations both HV and NNA. Sent back all dumpsters. Boxed up copier, printer, fax, camera, to go to OSK drilling office. Boxed up computers sent to OSK to ship to IT. Turned location and drilling trailer over to Production. All associated cost to date 2/1/05 Well producing approximately 1812 mcfd with 24 bwpd at 692 psi FTP. MIRU slickline. Thaw tree cap. Pressure test lubricator to 3000 psi. RIH with 2.5" gauge ring with well flowing. Set down at 8285'. Worked through and continued in hole to 8450'. Didn't set down but decided to POOH because having 1600 Ibs of PU weight due to tool drag. Tools pulled clean at 8285'. Appears that we broke through some sand bridges at 8285' and 8450'. Continue POOH. LD slickline tools. After POOH, the well unloaded a bunch of water and the rate increased to 2.8 mmcfd. SDFN 2/2/05 SDFN. Well producing 1842 mcfd and 30 bwpd with 698 psi FTP. RU slickline. Noticed that wire above the rope socket was pig-tailed from yesterday's gauge ring run. Strip off 50' of wire and rehead. Pressure test to 3000 psi. RIH with Protechnics logging tool, set down in tree. POOH. Pump methanol to clear ice from the tree. RIH with Protechnics spectral gamma ray log for detecting radioactive tracer. Tools falling slowly. Log at 30 fpm from 6200' to 4200'. POOH. Download log data - good. Notice that wire above the rope socket was again pigtailed. Discuss whether to run the production log which is longer and weighs less than the tracer log. Decide to cancel the slickline PL T. RDMO slickline. Well producing to sales. HV-08 (AFE 163122) morning report summary, CONFIDENTIAL: last revised 3/11/2005, Page 4. CONFIDE NTIAl - ~(j)}!:f? ¡ ~ Œ' ¡ ¡ If! , fnU" : wlJ Wi . lID} !Æl!Æ~æ[Æ . / FRANK H. MURKOWSKI, GOVERNOR / I jD tf ~ (Ie( AI/ASIiA. OIL AlQ) GAS CONSERVATION COJDIISSION 333 W. 7'H AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276·7542 Tim Brandenburg Drilling Manager Union Oil Company of California P.O. Box 196247 Anchorage, Alaska 99519 Re: Happy Valley #A-8 Sundry Number: 305-064 Dear Mr. Brandenburg: 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. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at (907) 659-3607 (pager). 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 Superio 000 unless rehearing has been requested. DATED this" day of March, 2005 Enc!. . . f- f' UNOCAL~ '-Alaska J. Gary Eller Advising Completion Engineer Unocal Alaska Tel 907-263-7848 Cell 907-351-1313 Fax 907-263-7847 E-mail: ellerg@unocal.com March 3, 2005 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission (AOGCC) 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Alaska Oil & Gas Cop~. Commissíor Re: Add BelugalTyonek Perforations in the Happy Valley #A-8 Well in the Deep Y(~.a'1f~if ! RECEIVED MAR 0 4 2005 Dear Mr. Aubert: As per the attached 10-403 Sundry Application, Unocal proposes to add Beluga and Tyonek formation perforations in the Happy Valley #A-8 well. The specific perforations additions are as follows: · Tyonek T6B: 8336' - 8354' MD · BLG-100: 7248' - 7262' MD · BLG-31: 4972' - 4988' MD This work is scheduled to begin Marc~ 2005, so prompt approval of the sundry application is appreciated. Please contact me if I c~~ of assistance. s~ ~ J.'a EII~ Advi . g Completion Engineer Union Oil Company of California I Unocal Alaska 909 West 9th Avenue, Anchorage, Alaska 99501 http://www.unocal.com .. STATE OF ALASKA ~/'" ~~èg'VÈD AL~ OIL AND GAS CONSERVATION COM_ION ~ MAR 0 4 2005 APPLICATION ~~~;~.~8~RY APPROVAL Alaska Oil & Gas Cons. Commissio I AbandonU Suspend U Operational shutdown U Perforate ~ waivet4nChorage OtherU AltercasingD Repairwell 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: Union Oil Company of California Development 0 / Exploratory 0 204-114 / 3. Address: Stratigraphic 0 Service 0 6. API Number: / 50-231-20023 -' I . 1. Type of Request: PO Box 196247, Anchorage, AK 99519 7. KB Elevation (ft): 738.5' MSL 8. Property Designation: Deep Creek Unit 11. Total Depth MD (ft): <a~O() Casing Structu ral Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): 5235' - 8581' Packers and SSSV Type: 9. Well Name and Number: / ¡Total Depth TVD (ft): Cc 13~ Length Happy Valley #A-8 10. FieldlPools(s): Happy Valley Field PRESENT WELL CONDITION SUMMARY IEffec~~2~ MD (ft): IEffecti~~~~ TVD (ft): Size MD TVD ¡PlUgS (m=ed): Burst ¡JUnk (m~ured): Collapse 111 1194 4168 nIa 5750 psi 7240 psi nIa 3090 psi 5410 psi 16" 111 1194 4168 111 1130 2631 9-5/8 " 7" 4876 3-1/2" 4021' - 8897' 2544' - 6731' ¡Tubing Size: ITubing Grade: 3-1/2" L-80 Packers and SSSV MD (ft): 10,160 psi 10,530 psi ¡Tubing MD (ft): 4055' Baker ZXP liner-top packer at 4021' ¡Perforation Depth TVD (ft): 3477' - 6435' Baker ZXP liner-top packer 12. Attachments: Description Summary of Proposal ~ Detailed Operations Program 0 BOP Sketch 0 14. Estimated Date for Commencing Operations: Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Printed Name Timothy C. Brandenburg Title Drilling Manager .--? 7 -~.. c:::.0 ~ Phone 907-276-7600 é ~ COMMISSION USE ONLY 16. Verbal Approval: Signature 13. Well Class after proposed work: Exploratory 0 Development 0 15. Well Status after proposed work: 3/12/2005 Oil 0 Gas 0 /' Plugged WAG 0 GINJ 0 WINJ /' Service 0 o Abandoned o WDSPL o o Date: Contact Gary Eller (263-7848) Date ~ -3-05- Conditions of approval: Notify Commission so that a representative may witness Sundry Number: .:? DS-_ 6" r Form 10-403 Revised 11/2004 Plug Integrity 0 Other: BOP Test 0 Location Clearance 0 Mechanical Integrity Test 0 RBDMS 8Ft. MAR (I 8 2005 COMMISSIONER APPROVED BY THE COMMISSION ~/£ Date: L Submit in Duplicate . .' tI UNOCALe API: 50-231-20023 AOGCC: 204-114 1324'FSL,1203'FEL Sec22, T2S, R13W, S.M. RT-THF: 23.9' Tbg lift threads - 3Y2" 18T Tree cxn - 2Y2" 80wen cxn Production TubinQ: 3W', 9.2 ppf, L-80, 18T-Mod to 4055' - Annulus loaded with fresh water plus ~ 8aracor 100 corrosion inhibitor Completion - Chemical injection sidepocket mandrel at 2501' (Macco SFO-1C-I) with 1/4", 0.049" wall SS chemical injection line - Locator sub @4027' - 8aker 80-40 seal assembly 17' of 4.00" OD seals - Muleshoe at 4055' NOTE: Slickline had problem hanging up at 4056' when running square-shoulder tool (8115 & 1219/04). Stimulation: Frac stimulated 8-40 perfs (5235' - 5304' gross) on 12/15/04 with 103,000 Ibs of 20/40 sand in 8J Lightning-2000 gel. Junk/Fill: - Coil tubing washed to 8817' (12/28/04) Directional Data: max hole angle = 65.9 deg at 2877' KOP = 175' max doglegs = 6.0 deg/100' at 4313' 5.7 deg/100' at 1304' 8.0 deg/100' at 236' HV-8 Actual schematic 1-18-2005 ~ ¥ $~ :8: ~ ... :8: ~ ~ .. P8TD = 8828' TD = 8900' . Well Name: Happy Valley #8 Field: Deep Creek Unit State: Alaska ',conductor: 16",82.77 ppf, K-55 to I iii' ~ Surface CasinQ: 95/.", 40 ppf, L-80, 8TC to 1194' Cmnt with 67 bbl of 12.8 ppg lead and 31 bblof 15.8 ppg tail "G" Intermediate CasinQ: 7", 26 ppf, L-80, 8TC-Mod to 4168' Cmnt with 71 bbl of 12.8 ppg LiteCrete lead and 15 bbl of 15.8 ppg "G" tail. Open Perfs: ,/ ~ 8-40: 5235' - 5244' (6 spf, 8/17104) 8-40: 5254' - 5262' (6 spf, 8/17104) 8-40: 5295' - 5304' (6 spf, 8/17104) 8-45: 5694' - 5718' (6 spf, 8/26/04) 8-45: 5729' - 5749' (6 spf, 8/26/04) 8-50: 6073' - 6083' (6 spf, 8/17104) 8-50: 6100' - 6110' (6 spf, 8/17104) 8-50: 6116' - 6124' (6 spf, 8/17104) 8-50: 6128' - 6134' (6 spf, 8/17104) 8-65: 6504' - 6518' (6 spf, 8/26/04) 8-80: 6738' - 6748' (6 spf, 8/26/04) 8-80: 6759' - 6765' (6 spf, 8/26/04) 8-80: 6772' - 6782' (6 spf, 8/15/04) 8-80: 6791' - 6801' (6 spf, 8/26/04) ~ T-1: 7910' - 7930' (6 spf, 8/11/04) T-1: 7949' - 7959' (6 spf, 8/11/04) T-6: 8247' - 8277' (6 spf, 8/11/04~ T-7: 8393' - 8404' (6 spf, 8/11/04) T-10: 8541' - 8581)6 spf, 8/9/04) Production Liner: 3Y2", 9.2 ppf, L-80, 18T-Mod liner from 4021' - 8897' 8aker ZXP packer, FlexJock liner hanger & 80-40 seal bore at 4021' /~ Cemented with 145 bbl of 12.0 ppg Litecrete Updated by: JGE , . It ~~~~! (ill} ~~~~~~« J'I,ASIiA ORAND GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Tim Brandenburg Unocal PO Box 196247 Anchorage AK 99519 Ji~t~t~,,.t~t' Re: Happy Valley A-8 304-476 Dear Brandenburg: 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 fOnTI. As provided in AS 31.05.080, within 20 days after written notice ofthis 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 0 unless rehearing has been requested. DATED thisßay of December, 2004 Encl. a STATE OF ALASKA . ALA~ OIL AND GAS CONSERVATION COM ION APPLICATION FOR SUNDRY APPROVAL 20 AAC 25.280 Operational shutdown U Perforate U Waiver U Plug Perforations 0 Stimulate 0 Time Extension 0 Perforate New Pool 0 Re-enter Suspended Well 0 4. Current Well C~% vJt;¡Jr;- 5. Permit to Drill Number: Development ~. Exploratory -B- 204-114 / Stratigraphic 0 Service 0 6. API Number/ 50-231ð~ ' 9. Well Name and Number: ' T.<;: C Happy Valley#8"' A - B \lJ4A- /)~ 'l://A 10. Field/Pools(s): IIl/j~i(. '. Co 9 -1::-() Deep Creek Unit 'II OIl, ß. <'004 4,,:; lbl}l. ~ ~ Plugs (meaSUred):"8'e Ju~~sured): """V"8Ilq/l bridge plug @ 7881' n7!1 Burst Collapse , Abandon U Alter casing 0 Change approved program 0 2. Operator Name: Union Oil Company of California 3. Address: Suspend U Repair well 0 Pull Tubing 0 1. Type of Request: PO Box 196247, Anchorage, AK 99519 7. KB Elevation (ft): 738.5' MSL 8. Property Designation: Deep Creek Unit 11. Total Depth MD (ft): 8,900' ../" Casing Structural Conductor Surface Intermediate Production Liner Total Depth TVD (ft): 6,734' Length PRESENT WELL CONDITION SUMMARY Effective Depth MD (ft): Effective Depth TVD (ft): 7,881' 5,787' Size MD rvD 111 16" 111 111 1194 9-5/8" 1194 1130 4168 7" 4,169' 2631 4876 3-1/2" 4021' - 8897' 2544' - 6731' ¡Tubing Grade: L-80 Packers and SSSV MD (ft): Baker ZXP packer at 4021' / 13. Well Class after proposed work: ^_ WG,,, Exploratory ~ Development /'.'" 15. Well Status after proposed work: ( 15-.2. c-Q4 Oil 0 Gas 0 Plugged WAG 0 GINJ 0 WINJ Perforation Depth MD (ft): Perforation Depth TVD (ft): 5235' - 8581' / 3477' - 6435' Packers and SSSV Type: Baker ZXP Liner-top packer 12. Attachments: Description Summary of Proposal U Detailed Operations Program 0 BOP Sketch 0 14. Estimated Date for Commencing Operations: 16. Verbal Approval: Date: Tubing Size: 3-1/2" / Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Tim Brandenburg (26~-7657) Title Drilling Manager S;g"WCe 'z:...:. ti'> _~" Ph". 9O~~::-:':ON USE ONLY D.te v../G+ Ð0 /2-llo{W04; 2}/0 /4-- Annular Dispos. U Other 0 n/a 5750 psi 7240 psi n/a 3090 psi 5410 psi 10,160 psi 10,530 psi ¡Tubing MD (ft): 4055' [if Service 0 0 Abandoned 0 0 WDSPL 0 Gary Eller (263-7848) /Q{~ ¡J¿ Z~ ~ 7604- 1218/2004 IS"",~N"mb,,(tJl/. L/1/{J 1/J Location Clearance 0 Conditions of approval: Notify Commission so that a representative may witness Plug Integrity 0 BOP Test 0 Mechanical Integrity Test o Other: Form 10-403 Revised 12/2003 OR\G\NAL RBDMS BFL DEl f ~ 200~ COMMISSIONER BY ORDER OF THE COMMISSION INSTRUCTIONS ON REVERSE e e Happy Valley #8 Deep Creek Unit Frac Stimulate Beluga Sand AFE 163122 Well History: Four Tyonek Sands were perforated and flow tested at 580 mcfd in July 2004 although a temperature survey showed that only two of the sands contributed to production. Rate and pressure were still improving when the Tyonek was isolated with a composite bridge plug. Ten Beluga sand intervals were perforated and tested at a combined rate of 1,200 mcfd with 860 psig FTP. Once again, productivity continually improved over the course of the flow test. A flowing temperature survey indicates that the B-40 Sand was contributing perhaps 500 mcfd. Another four Beluga intervals were subsequently perforated, which resulted in a reduction in productivity. The well has since experienced productiOI3./~ problems due to insufficient gas rate to remove water from the wellbore. Objective: Isolate and frac stimulate the B-40 Sand (5235' - 5304') in well HV-8. Subsequently will use coil tubing to remove the bridge plug at 7881' that is isolating productive Tyonek sands, and prepare the well for production to sales. / Procedure: 1. MIRU slickline on well HV -8 with the well flowing to sales. Record flow rate and pressure on the morning report. Conduct prejob safety meeting and pressure test lubricator to 2000 psi. RIH with 2" gauge ring. Tag Fasdrill bridge plug at / 7881'. POOH. (Note: Contact Completion Engineer if there is significant fill in the well above the bridge plug.) 2. PU tandem pressure/temperature gauges with depth encoder and RIH with well flowing. RIH at full speed to 4900'. Log down at 40 fpm down to 7000' MD. Hold at 7000' while Production Operators unload water from well HV -8 by reducing the back-pressure at surface. Record flow rate and pressure on the ./' morning report following the unloading operation. After well has unloaded, log up at 40 fpm up to 4900', then POOH at full speed. Download gauges. 3. Have Production Operators shut-in well HV-8. Wireline Operators should not shut-in the well themselves without authorization from Production. PU 2.75" to 2.80" gauge ring and RIH to the same point tagged previously. POOH. RDMO slickline. Return well to sales. 4. Shut-in well HV -8. MIRU electric line. Pressure test lubricator to 2000 psi and conduct pre-job safety meeting. PU Halliburton Fasdrill bridge plug for 3W' / casing and RIH. Tie in with CCL to SCMT log of 8/4/2004. Set Fasdrill bridge plug at 5540' MD. POOH, RDMO electric line. HV -8 Frac Prog December 7, 2004 ~appy Valley #8 Frac Stimulate Beluga Sand AFE 163122 Page 2 e e 5. Produce well HV-8 to sales while it is producing strictly from the open B-40 perfs. Record well test data. 6. Shut-in well HV-8. Close the existing wing valve and hydraulic SSV; flag both valves shut. RU 3W', 6.5M wing valve and pneumatic SSV on the opposite side of the flow cross. RU the PTS sand buster and the Unocal test skid. Pressure test from the wing valve to the Unocalline heater to 4000 psi using methanol. Load the line heater with glycol. Spot the Johnson tank and the sand buster inside of bermed containment having 110% capacity of the largest tank. Have Vetco grease all the valves on the tree in preparation for frac stimulation, and after· greasing avoid using the master valves at all (use swab and wing valves only). Move in five clean 500-bbl Rain-for-Rent frac tanks with manifolds and heating lines. Spot frac tanks as per BJ frac supervisor. Manifold tanks and fill with fresh water from the HV "A" pad water well using 2" hose. iliote: Frac tanks do not /' have to be lined and bermed as per memo of 11/16/2004 from Faye Sullivan.) Record fresh water usage on the daily log sheet provided by the Environmental Department. Use Steam-on-Wheels to keep tanks thawed, and prior to the frac stimulation heat each tank to 70° F. 7. MI BJ Services Sand Kings and frac iron. Conduct prejob safety meeting. BJ will spot all frac pumps and blender on portable containment. Load one Sand King with 28,000 lbs of Flexsand MSE and the other Sand King with 195,000 lbs of 20/40 Ottawa proppant. RU BJ frac iron to well HV-8 anqpressure test to ,..- 6500 p~i. Maximum pum~ pressure during stimulation ~ psi. . Install sensor to momtor pressure on tubmg annulus throughout the fracJob. Venfy that the wing valve and the SSV are both closed. RU Protechnics to pump radioactive and chemical tracer during frac stimulation. 8. Frac stimulate the B-40 Sand in well HV -8 using the following schedule. HV -8 Frac Prog December 7,2004 Happy Valley #8 Frac Stimulate Beluga Sand AFE 163122 Page 3 e e Will plan to shut down briefly after loading the hole, then will shut down for 1 hour to monitor the mini-frac. Prior to the frac, Protechnics should perfonn a background radiation survey of the temporary flowback equipment and the pennanent production and test separators. Following the frac, secure the well by closing the swab valve. RD the frac head and move over to RU on well HV-9. Do not attempt to flow the well back immediately. 9. After BJ has demo bed the frac equipment, MIRU Schlumberger lo/.¡" coil tubing and nitrogen. Use KCI fluid in the Rain-for-Rent frac tanks for source fluid. Fluids will move from the 500-bbl tank via a transfer pump and dual pod filtcr into the blender unit into the coil tubing. Will take returns to a Johnson tank with a built-in gas buster. Second pod of blender unit will be used to mix HEC viscous pills as needed. Get a starting strap of fluids in the 500-bbl tank and the Johnson tank. Pressure test BOPE to 300/3000 psi using water and conduct pre-job safety meeting. iliote: Do not plan to RIH with coil tubing until minimum of 36 hours after the HV -8 frac job.) MU tool string with 2.70" concave mill, 2%" motor, straight bar, and MHA with circ sub. Avoid using tools with a square shoulder (see note below). ...--- 10. RIH with milling assembly circulating KCI at minimum rate to 5500'. iliote: Slickline had some trouble picking up through 4056' when using a square- shouldered running tool.) Get a pickup weight and increase rate to 1.2 bpm. iliote: At 1.2 bpm will have 210 [pm annular velocity. Schlumberger motor is a 2%" XP-PowerPak: 20 to 50 gpm, 150 to 3SQ rpm, 600 psi dP, 14 hp). RIH, mill through the Fasdrill bridge plug at 5540'. ~heck PU weight after milling through plug, c09tinue in hole. RIH, mill through the second Fasdrill bridge plug at 7881' . 4>ump 10 15 bbl HEC pill to sweep the holo. Continue to RIH to PBTD of 8,828'. Circulate BU. Check returns for propp ant. / 11. Drop a ball to open the circulating sub. When the circulating sub is open, cease circulating water and get a tank strap. Begin circulating nitrogen at 1500 scfm, unloading the well to the Johnson tank. Hold back-pressure as per Completion Engineer's schedule to maintain constant BHP during jetting. Jet well dry, shut off nitrogen, POOH. RDMO coil tubing and nitrogen unit. 12. Have Vetco once again grease all tree valves. Continue to avoid using the master valves whenever possible. 13. RU SPIDR gauge to continuously monitor tubing pressure. Flow well through sand buster and through Unocal test separator as per instructions of Completion Engineer. Pennanent wing valve and hydraulic SSV should remain shut and flagged. Take gas to flare until pressure and gas rate is adequate to switch to sales. Dump sand buster frequently, and use vacuum trucks to haul off fluids to the tanks on the G&I pad. PTS will provide two flowback hands for 24-hour HV -8 Frac Prog December 7,2004 Jlappy Valley #8 Frac Stimulate Beluga Sand AFE 163122 Page 4 e e coverage. Unocal will provide other testing manpower as needed. Pump methanol and use line heater as needed to prevent freezing. Record flowback pressure, gas and fluid rate, flowline temperature, and estimate of solids production at least hourly. Capture fluid samples as per Protechnics' recommendation to analyze for chemical tracer. 14. When the well has sufficiently cleaned up, open the permanent wing valve and hydraulic SSV to route production directly to the production facility. Close the temporary wing valve, bleed off pressure, and RD the pneumatic SSV, sand buster, and other flowback equipment. Install a blind flange on the open wing valve. iliote: The extra wing valve on the flow cross ofHV-8 can be removed at some later date during a shut-in.) Produce well to sales. RDMO temporary flow test equipment. Clean out solids and liquids from both flowback tanks and the test separator and dispose via Class II well. Perform a follow-up radiation survey in the temporary and permanent flowback equipment that was tested previously. / HV -8 Frac Prog December 7, 2004 e UNOCAL(Ð API: 50-231-20023 AOGCC: 204-114 1324'FSL,1203'FEL Sec22, T2S, R13W, S.M. RT-THF: 23.9' Tbg lift threads - 3W IBT Tree cxn - 2Y." Bowen cxn Production Tubing: 3W', 9.2 ppf, L-80, IBT-Mod to 4055' - Annulus loaded with fresh water plus Baracor 100 corrosion inhibitor Completion - Chemical injection sidepocket mandrel at 2501' (Macco SFO-1C-I) with 1/4", 0.049" wall SS chemical injection line - Locator sub @4027' - Baker 80-40 seal assembly 17' of 4.00" OD seals - Muleshoe at 4055' NOTE: Slickline had problem hanging up at 4056' when running square-shoulder tool (a/15104). Pluas: /" Halliburton Fasdrill bridge plug at 7881' (8/15/04) Directional Data: max hole angle = 65.9 deg at 2877' KOP = 175' max doglegs = 6.0 deg/100' at 4313' 5.7 deg/100' at 1304' 8.0 deg/100' at 236' HV-8 Actual schematic 8-27-2004 ~ · · · · · · · · · · · · · · · ... z ~ z ~ ~.:' z ~ ~ PBTD = 7881' TO = 8900' e Well Name: Happy Valley #8 Field: Deep Creek Unit State: Alaska I conductor: 16",82.77 ppf, K-55 to I 111' ~ Surface Casina: 9o/a", 40 ppf, L-80, BTC to 1194' Cmnt with 67 bbl of 12.8 ppg lead and 31 bbl of 15.8 ppg tail "G" Intermediate Casina: 7", 26 ppf, L-80, BTC-Mod to 4169' Cmnt with 71 bbl of 12.8 ppg LiteCrete lead and 15 bbl of 15.8 ppg "G" tail. Open Perfs: B-40: 5235' - 5244' (6 spf, 8/17/04) } B-40: 5254' - 5262' (6 spf, 8/17/04) Fr~ B-40: 5295' - 5304' (6 spf, 8/17/04) B-45: 5694' - 5718' (6 spf, 8/26/04) B-45: 5729' - 5749' (6 spf, 8/26/04) B-50: 6073' - 6083' (6 spf, 8/17/04) B-50: 6100' - 6110' (6 spf, 8/17/04) B-50: 6116' - 6124' (6 spf, 8/17/04) B-50: 6128' - 6134' (6 spf, 8/17/04) B-65: 6504' - 6518' (6 spf, 8/26/04) B-80: 6738' - 6748' (6 spf, 8/26/04) B-80: 6759' - 6765' (6 spf, 8/26/04) B-80: 6772' - 6782' (6 spf, 8/15/04) B-80: 6791' - 6801' (6 spf, 8/26/04) Isolated Perfs T-1: 7910' - 7930' (6 spf, 8/11/04) T-1: 7949' - 7959' (6 spf, 8/11/04) T-6: 8247' - 8277' (6 spf, 8/11/04) T-7: 8393' - 8404' (6 spf, 8/11/04) T-10: 8541' - 8581' (6 spf, 8/9/04) Production Liner: 3W, 9.2 ppf, L-80, IBT-Mod liner from 4021' - 8897' Baker ZXP packer, Flexlock lin~nger & 80-40 seal bore at 4021' Cemented with 145 bbl of 12.0 ppg Litecrete / / Updated by: JGE . . Unocal Alaska 909 W. 9th Avenue Anchorage, AK 99501 Tele: (907) 263-7889 Fax: (907) 263-7828 E-mail: oudeand@unocal.com UNOCAL€Ø Debra Oudean G & G Technician Date: December 2, 2004 To: AOGCC Helen Warman 333 W. 7th Ave. Ste#100 Anchorage, AK 99501 ~~t.'h1I·uD ¡, ,WELL I ,LOG TYPE, ,,'ISCALEI>;~~ II~~~~~ IL~EIFILMICDINOTES ",I J.II.111 /siÄR1-u'~~'-'[PERF6R-ÄT¡NGRECORD'2';-20Õ6PJ-6SPF""-r5,'IÑCH'f9/1ii2004[S66S:S856'''u, (1'l'··· '1 f',,1, 'I" on.", ,,-. ':ST ART' [COMPLETION RECORD2:5HSDPOWERJUSur5ïNCH T9/11/2004[S27 4-8552~ 11[~-'1r1r'uu,,,,-,,u, ~/80 ~_ :~~~:~~~~::f~~i~~~: ::~:~~25 HSD ~~: r~~f~ ::i.H [ 1[[~]r :=-:-~ ~O"7 w IO'fl ¡ POWERJETS I I I I , : iHAPPYVALLEY-7 [MDMUDLOG' , ~f2INCH I 7/14/20041008-1027411Tof1T- ~ t\\[HAPPY VALLEY -8 I~~~~~E;~ON RECORD 2.5 2506 POWERJET 15 INCH I 8/26/200415688-6799 1111 ! ~Ù "''\. ¡HAPPY VALLEY-8 '[MD MUDLOG -[¿INCH [7/30/2ÕÕ¡?ã:a9Ûo--¡-jTofj-r- ,., : '" uv( !HAPPY VALLEY-8 'TVD SONIC QUAD COMBO 12 INCH " 7/31/2004l20-8892 ~: 0l~-¡COMB'NED-l r !HAPPY VALLEY-8 IMD SONIC QUIAD COMBO 2INCH I 7/31/2004120-8892 [(J' 0 ¡ON CD , ! ! -[REEVES DATA VIEWER --~I--r -ro-To[j!'- ¡HAPPY VALLEY-9 ¡COMPLETION RECOR02:5H'SOPOWERJETSlSINCH 11/5120ü4'[7390-8362-i1T111r-- ! !HAPPY VALLEY -9 ARRAY INDUCTION 1 THREE-LlTHO-DENSITY 2 INCH '9/2312004 0-8468 1-1-1~1---------¡ l\~ i 1 COMPENSATED NEUTRON 1 BHC SONIC ! .. í \; , TVD COMBINED ~." ¡HAPPY VALLEY-9 ARRAY INDUCTION 1 THREE-LlTHO-DENSITY ~ 9/23/2004 0-8468 ---¡1-Ü ON CD ,.~,' i I COMPENSATED NEUTRON 1 BHC SONIC INCH ~\J ! PLATFORM EXPRESS ;t rAPPY VALLEY-9 ~~~FORATION RECORD 2.5 HSD 25õ6P-.Jï3fNCH.! 11/8/200417440-783~r-11r1-r~1 :HAPPY VALLEY-9 ¡SLIM CEMENT MAPPING TOOL 15 INCH 111/1/200412900-8391 ~1111 I ¡HAPPY VALLEY-9 ¡SLIM CÈMENT MAPPING TOOL .. 151Ñ~H r911712004r0-3006-r1__[1ljf~----1 Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. ~e'e;v~M~,.!f~ Date ~:fý . ~~!Æ~E rnJJ !Æ~!Æ~~~!A . ?a,oy ~ flY ~liASHA OIL A1Q) GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. ]TH AVENUE. SUITE 100 ANCHORAGE. ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Tim Brandenburg Drilling Manager Union Oil Company of California P.O. Box 196247 Anchorage, Alaska 99519 Re: Happy Valley #8 Sundry Number: 304-418 Dear Mr. Brandenburg: 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 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 requesy i e:u dy. BY ORDER OF THE COMMISSION DATED this/~ay of November, 2004 Enc!. . STATE OF ALASKA . ALA OIL AND GAS CONSERVATION COM ION APPLICATION FOR SUNDRY APPROVAL 20 AAC 25.280 Operational shutdown U Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: "', Abandon U Alter casing 0 Change approved program 0 2. Operator Name: Union Oil Company of California 3. Address: Suspend U Repair wellØ Pull Tubing 0 1. Type of Request: Perforate U W¿¡;A- Waiver U Stimulate æ? Time Extension 0 Re-enter Suspended Well 0 5. Permit to Drill Number: 204-114/ Development Stratigraphic o o Exploratory 0 o lI-1GA- D7:5' 6. API Number:/ 50-231-20023 PO Box 196247, Anchorage, AK 99519 7. KB Elevation (ft): 9. Well Name and Number: 738.5' MSL Happy Valley #8 t" 8. Property Designation: 10. Field/Pools(s): Deep Creek Unit IlðWY Valley r;a1J Ù-Uf C:V.e..e ~ 11. 'ljt6Jr' PRESENT WELL CONDITION SUMMARY µ/,.;:;-' Total Depth MD (ft): , Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): ~.g.:¡OO ~ (Í;{ ~4 .A.éol;1-7'¡.g ( .4J..86"" S 7 -!J1 bridge plug @ 7881' TVD Burst Service Casing Length Size MD Structural Conductor 111 16" 111 Surface 1194 9-5/8" 1194 Intermediate 4168 7" 4168 Production Liner 4876 3-1/2" 4021' - 8897' Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: 5235' - 8581' 3477' - 6435' 3-1/2" Packers and SSSV Type: Baker ZXP Liner-top packer 12. Attachments: Description Summary of Proposal U Detailed Operations Program 0 BOP Sketch 0 14. Estimated Date for Commencing Operations: 16. Verbal Approval: Date: 111 1130 2631 2544' - 6731' Tubing Grade: L-80 W4A;- n/a 5750 psi 7240 psi 1111S/~o~ n{ 15/~ Annular Dispos. U Other 0 Junk (measured): n/a Collapse n/a 3090 psi 5410 psi 10,160 psi 10,530 psi Tubing MD (ft): 4055' Packers and SSSV MD (ft): Baker ZXP packer at 4021' 13. Well Class after proposed work: Exploratory 0 Development 0 15. Well Status after proposed work: 17-Nov-04 Oil 0 Gas 0 Plugged 0 WAG 0 GINJ 0 WINJ 0 Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Printed Name Tim Brandenburg (263-7657) Title Drilling Manager -z....,... /. _ ~/hO", Signature Contact Gary Eller (263-7848) COMMISSION USE ONLY Date November /~/p?0t:YI Service 0 Abandoned WDSPL o o Conditions of approval: Notify Commission so that a representative may witness Sundry Number:1Ó4. £j / J Plug Integrity 0 BOP Test 0 Mechanical Integrity Test 0 Location Clearance 0 Other: Approved by: RBDMS BFL NOli 1 6 2004 BY ORDER OF COMMISSIONER THE COMMISSION ¡ì~AuþTIONS ON REVERSE NOV] 2004 Dat. '#-1 df Submit in Duplicate .. . . Happy Valley #8 Deep Creek Unit Remove Plug Isolating Tyonek AFE 162122 Well History: Four Tyonek Sands were perforated and flow tested at 580 mcfd in July 2004 although a temperature survey showed that only two ofthe sands contributed to production. Rate and pressure were still improving when the Tyonek was isolated with a composite bridge plug. Ten Beluga sand intervals were perforated and tested at a combined rate of 1,200 mcfd with 860 psig FTP. Once again, productivity continually improved over ~he course of the flow test. Another four Beluga intervals were subsequently perforated, which resulted in a / slight reduction in productivity. It is believed that a small volume of water entered the wellbore from one or more of the recently perforated Beluga intervals. Objective: Remove the composite bridge plug at 7881' that is isolating productive Tyonek sands. Prepare the well for production to sales. Procedure: 1. MIRU 1 %" coil tubing and nitrogen. RU dual pod blender unit to blend a total of 250 bbl of 6% KCl in the 500-bbl frac tan1e iliote: Use 22 lbs KCl per barrel of water to make 6% blend.) Fluids will move from the 500-bbl tank via a transfer pump and dual pod filter into the blender unit into the coil tubing. Will take returns to a Johnson tank with a built-in gas buster. Second pod of blender unit will be used to mix HEC viscous pills as needed. Get a starting strap of fluids in the 500-bbl tank and the Johnson tank. Pressure test BOPE to 300/3000 psi using water and conduct pre-job safety meeting. MU tool string with 2.70" concave mill, 2%" motor, straight bar, and MHA with circ sub. Avoid using tools with a square shoulder (see note below). / 2. RIH with milling assembly circulating 6% KCl at minimum rate to 7850'. iliote: Slickline had some trouble picking up through 4056' when using a square- shouldered running tool.) Establish returns (hole is starting empty) and get a pickup weight. Increase rate to 1.2 bpm. (Note: At 1.2 bpm will have 210 [pm annular velocity. Assumed motor is a 2%" XP-PowerPak motor: 20 to 50 gpm, 150 to 350 rpm, 600 psi dP, 14 hp). RIH, mill through the Fasdrill bridge plug at 7881'. Check PU weight after milling through plug, continue in hole. Pump 10- 15 bbl HEC pill to sweep the hole. Continue to RIH to PBTD of 8,828'. Circulate BU. ,/ 3. Drop a ball to open the circulating sub. When the circulating sub is open, cease circulating water and get a tank strap. Begin circulating nitrogen at 1500 scfm, unloading the well to the Johnson tank. Jet well dry. Shut off nitrogen, POOH. Allow well to continue blow gas to the returns tank while POOH. Do not allow HV-8 CoilCleanout Prog November 11,2004 Happy Valley #8 . -Remove Plug Isolating Tyonek AFE 163122 Page 2 . tubing pressure to drop below 750 psi while purging well of nitrogen. Check LEL on returns gas and shut-in when nitrogen is sufficiently purged. RDMO coil tubing and nitrogen unit. 4. Secure well until ready to flow to sales. Recommend producing to sales promptly to minimize risk of water damage to the Tyonek formation. ,/ HV -8 CoiICIeanout Prog November 11,2004 . API: 50-231-20023 A()GCC: 204-114 1324'FSL,1203'FEL Sec22, T2S, R13W, S.M. RT-THF: 23.9' Tbg lift threads - 31'2" IBT Tree cxn - 21'2" Bowen cxn Production Tubino: 31'2", 9.2 ppf, L-80, IBT-Mod to 4055' - Annulus loaded with fresh water plus Baracor 100 corrosion inhibitor Completion - Chemical injection sidepocket mandrel at 2501' (Macco SFO-1C-I) with 1/4", 0.049" wall SS chemical injection line - Locator sub @4027' - Baker 80-40 seal assembly 17' of 4.00" 00 seals - Muleshoe at 4055' NOTE: Slickline had problem hanging up at 4056' when running square-shoulder tool (8115/04). Pluas: Halliburton Fasdrill bridge plug at 7881' (8/15/04) Directional Data: max hole angle = 65.9 deg at 2877' KOP = 175' max doglegs = 6.0 deg/100' at 4313' 5.7 deg/100' at 1304' 8.0 deg/100' at 236' HV-8 Actual schematic 8-27-2004 ~ :8: ~ ... :8: ~ Z 1~-t\ .... ~ PBTD = 7881' TD = 8900' . Well Name: Happy Valley #8 Field: Deep Creek Unit State: Alaska I ,conductor: 16",82.77 ppf, K-55 to I 111 ' ~ Surface Casino: 9%", 40 ppf, L-80, BTC to 1194' Cmnt with 67 bbl of 12.8 ppg lead and 31 bbl of 15.8 ppg tail "G" Intermediate Casino: 7", 26 ppf, L-80, BTC-Mod to 4168' Cmnt with 71 bbl of 12.8 ppg LiteCrete lead and 15 bbl of 15.8 ppg "G" tail. Open Perfs: Beluga: 5235' - 5244' (6 spf, 8/17/04) 5254' - 5262' (6 spf, 8/17104) 5295' - 5304' (6 spf, 8/17104) 5694' - 5718' (6 spf, 8/26/04) 5729' - 5749' (6 spf, 8/26/04) 6073' - 6083' (6 spf, 8/17104) 6100' - 6110' (6 spf, 8/17/04) 6116' - 6124' (6 spf, 8/17/04) 6128' - 6134' (6 spf, 8/17/04) 6504' - 6518' (6 spf, 8/26/04) 6738' - 6748' (6 spf, 8/26/04) 6759' - 6765' (6 spf, 8/26/04) 6772' - 6782' (6 spf, 8/15/04) 6791' - 6801' (6 spf, 8/26/04) Isolated Perfs T-1: 7910' -7930' (6 spf, 8/11/04) T-1: 7949' - 7959' (6 spf, 8/11/04) T-6: 8247' - 8277' (6 spf, 8/11/04) T-7: 8393' - 8404' (6 spf, 8/11/04) T-10: 8541' - 8581' (6 spf, 8/9/04) Production Liner: 3Y2", 9.2 ppf, L-80, IBT-Mod liner from 4021' - 8897' Baker ZXP packer, Flexlock liner hanger & 80-40 sealbore at 4021' Cemented with 145 bbl of 12.0 ppg Litecrete Updated by: JGE STATE OF ALASKA " ALASKA.AND GAS CONSERVATION COMMISS. WELL COMPLETION OR RECOMPLETION REPORT AND L:OG, OilD Gas0 Plugged 0 AbandonedD SuspendedD WAGD 1b. Well Clasf 20AAC25.105 20AAC25.110 Development 0 ExplóratolYO No. of Completions 1 Other Service 0 Stratigraphic Test 0 5. Date Comp., Susp., or 12. Permit to Drill Number: Aband.: 8/27/04 204-114 6. Date Spudded: 13. API Number: 7/20104 50-231-20023 7. Date TD Reached: 14. Well Name and Number: 7/30/04 HV-08 8. KB Elevation (ft): 15. Field/Pool(s): 739' 9. Plug Back Depth(MDi" TVD): 7,881'/5,787' 10. Total Depth (MD i" TVD): 16. Property Designation: 8,900'/6,734' C-061590 11. Depth Where SSSV Set: n/a 19. Water Depth, if Offshore: n/a feet MSL 1 a. Well Status: GINJD WINJO WDSPLD 2. Operator Name: Union Oil Company of California 3. Address: PO Box 196247, Anchorage, AK 99501 4a. Location of Well (Governmental Section): Surface: 1,324' FSL 1,203 FEL Sec. 22 T2S R13W Top of Productive Horizon: 1,817' FSL 562' FWL Sec. 22 T2S R13W Total Depth: 1,931' FSL 1,094' FEL Sec. 21 T2S R13W 4b. Location of Well (State Base Plane Coordinates): Surface: x- 228,020 y- 2,189,852 TPI x- 224,573 y- 2,190,410 Total Depth: x- 222,920 y- 2,190,562 18. Directional Survey: Yes [J No 0 21. Logs Run: SCMT, GRlSP/Resistivity/Density/Neutron/Sonic Deep Creek UniUBeluga 17. Land Use Permit: n/a 20. Thickness of Permafrost: n/a 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT. GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 16" 82.77# K-55 0 111 ' 0 110' Driven 9-5/8" 40# L-80 0 1,194' 0 1,130' 12-1/4" 67bbl 12.8ppg/31bbl 15.8ppg "G" 7" 26# L-8o 0 4,168' 0 2,631' 8-1/2" 71bb112.8ppg litecrete/15bbI15.8ppg "G" 3-1/2" 9.2# L-8o 4,021 8,897' 2,543' 6,731' 6-1/8" 145bbl 12ppg litecrete 23. Perforations open to Production (MD i" TVD of Top and Bottom Interval, Size and Number; if none, state "none"): See perf record attached on schematic for perforation detail. Perfs are too numerous to list in space provided. 24. SIZE 3-1/2" 9.2# L-8o TUBING RECORD DEPTH SET (MD) PACKER SET (MD) 4,055 Baker ZXP @ 4,021' 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 26. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): n/a flowing Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: 8/27/2004 24 Test Period -.0 1065 Flow Tubing Casing Press: Calculated Oil-Bb/: Gas-MCF: Press. 840 0 24-Hour Rate -+ 0 1065 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". Ir~;~~ ~,~-¡ Water-Bbl: o Water-Bbl: o none n ",-,/ I L Form 10-407 Revised 12/2003 CONTINUED ON REVERSE Choke Size: IGaS-Oil Ratio: 48/64" nla Oil Gravity - API (corr): nla RBDMS BFL NOV 1 6 2004 CONFIDENTIAL if NAME GEOLOGIC MARKERS Me TVD 29. FORMATION TESTS Include and briefly su.e test results. List intervals tested, and attach detailed supporting da necessary. If no tests were conducted, state "None". 28. Testing operations summarized in daily operations reports (attached). Beluga Mid Beluga Tyonek 3,252' 5,874' 7,891' 2,188' 4,029' 5,796' 30. List of Attachments: Directional Survey, Daily operations summary, schematic 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Steve Lambe 263-7637 Printed Name: Tim C. BrandenburQ Title: Drilling Manager Signature: -:? '- ¿fi ff Phone: 907-276-7600 Date: 11/2/2004 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 I njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". CONFIDENTiAl Form 10-407 Revised 12/2003 UNOCAL~ API: 50-231-20023 AOGCC: 204-114 1324'FSL,1203'FEL Sec22, T2S, R13W, S.M. RT-THF: 23.9' Tbg lift threads - 3W' 1ST Tree cxn - 2W' Sowen cxn Production Tubino: 3W', 9.2 ppf, L-BO, 1ST-Mod to 4055' - Annulus loaded with fresh water plus Saracor 100 corrosion inhibitor Completion - Chemical injection sidepocket mandrel at 2501' (Macco SFO-1C-I) with 1/4", 0.049" wall SS chemical injection line - Locator sub @4027' - Saker 80-40 seal assembly 17' of 4.00" 00 seals - Muleshoe at 4055' NOTE: Slickline had problem hanging up at 4056' when running square-shoulder tool (8/15/04). Pluos: Halliburton Fasdrill bridge plug at 7881' (8/15/04) Directional Data: max hole angle = 65.9 deg at 2877' KOP = 175' max doglegs = 6.0 deg/100' at 4313' 5.7 deg/100' at 1304' 8.0 deg/100' at 236' HV-8 Actual schematic 8-27-2004 . ~ z .... · · · · · · · · · · · · · · · ... :;g: ~ ~ PSTD = 7881' TO = 8900' z ... . Well Name: Happy Valley #8 Field: Deep Creek Unit State: Alaska '¡COnductor: 16",82.77 ppf, K-55 to 111 ' Surface Casino: 9%", 40 ppf, L-80, ~ STe to 1194' Cmnt with 67 bbl of 12.8 ppg lead and 31 bbl of 15.8 ppg tail "G" Intermediate Casino: 7", 26 ppf, L-80, STC-Mod to 4168' Cmnt with 71 bbl of 12.8 ppg LiteCrete lead and 15 bbl of 15.8 ppg "G" tail. Open Perfs: Beluga: 5235' - 5244' (6 spf, 8/17/04) 5254' - 5262' (6 spf, 8/17/04) __ 5295' - 53Q4' (6 spf, 8/17/04) 56~4' - 5718' (6 spf, 8/26/04) 5729' - 5749' (6 spf, 8/26/04) 6073' - 6083' (6 spf, 8/17104) 6100' - 6110' (6 spf, 8/17/04) 6116' - 6124' (6 spf, 8/17/04) 6128' - 6134' (6 spf, 8/17/04) 6504' - 6518' (6 spf, 8/26/04) - 6738' - 6748' (6 spf, 8/26/04) 6759' - 6765' (6 spf, 8/26/04) 6772' - 6782' (6 spf, 8/15/04) ~791' - 6801' (6 spf, 8/26/04) Isolated Perfs T-1: 7910' -7930' (6 spf, 8/11/04) T-1: 7949' -7959' (6 spf, 8/11/04) T-6: 8247' - 8277' (6 spf, 8/11/04) T-7: 8393' - 8404' (6 spf, 8/11/04) T-10: 8541' - 8581' (6 spf, 8/9/04) Production Liner: 3Y2", 9.2 ppf, L-80, 1ST-Mod liner from 4021' - 8897' Saker ZXP packer, Flexlock liner hanger & 80-40 sealbore at 4021' Cemented with 145 bbl of 12.0 ppg Litecrete CONFIDENTIAl Updated by: JGE >Infornlation >Well >Directional Surveys >Fu.ey - ~-ªJ~ . Select Well: HV8 Report Name Well Date Created Position Log HV8 11/2/2004 Well Name CURRENT STATUS API KB Surf X Surf Y (ft) (ft) (ft) Interpolate . HV8 UNKNOWN 502312002300 739 228,020 2,189,852 MD TVD SSTVD X Off Y Off X Y 'nc Azimuth (ft) (ft) (ft) (ft) (ft) (ft) (ft) (deg) (deg) 0 0 739 0 0 228,020 2,189,852 0.0 0 135 134 605 0 0 228,020 2,189,852 0.6 272 175 174 565 -1 0 228,019 2,189,852 2.8 295 236 235 504 -6 2 228,014 2,189,854 7.6 299 298 296 443 -15 7 228,005 2,189,859 10.6 299 380 377 362 -28 15 227,992 2,189,867 10.9 295 446 442 297 -40 19 227,980 2,189,871 11.0 287 505 500 239 -51 23 227,969 2,189,875 12.1 284 567 560 179 -65 26 227,955 2,189,878 14.4 279 627 618 121 -81 28 227,939 2,189,880 16.7 276 681 669 70 -97 30 227,923 2,189,882 18.0 273 742 727 12 -116 31 227,904 2,189,883 19.1 273 803 784 -46 -137 33 227,883 2,189,885 21.3 271 865 842 -104 -161 34 227,859 2,189,886 24.3 272 926 897 -159 -187 36 227,833 2,189,888 26.4 274 987 951 -213 -215 39 227,805 2,189,891 28.0 277 1,049 1,005 -267 -245 42 227,775 2,189,894 29.5 276 1,110 1,058 -320 -275 46 227,745 2,189,898 30.5 275 1,148 1,091 -353 -294 49 227,726 2,189,901 32.2 278 1,242 1,170 -432 -345 56 227,675 2,189,908 33.2 276 1,304 1,220 -482 -380 61 227,640 2,189,913 36.7 276 1,366 1,269 -531 -418 66 227,602 2,189,918 40.1 277 1,428 1,316 -578 -459 72 227,561 2,189,924 42.4 277 1,490 1,361 -623 -501 78 227,519 2,189,930 44.5 277 1,552 1,404 -666 -544 85 227,476 2,189,937 46.4 278 1,614 1,446 -708 -590 92 227,430 2,189,944 48.9 278 1,676 1,485 -747 -637 100 227,383 2,189,952 51.5 278 1,738 1,523 -785 -685 108 227,335 2,189,960 54.2 277 1,800 1,558 -820 -736 115 227,284 2,189,967 56.3 277 1,862 1,592 -854 -787 123 227,233 2,189,975 58.0 278 1,924 1,624 -886 -840 132 227,180 2,189,984 60.5 278 1,986 1,653 -915 -894 141 227,126 2,189,993 63.6 278 2,049 1,680 -942 -950 150 227,070 2,190,002 65.2 278 2,111 1,706 -968 -1,006 158 227,014 2,190,010 65.4 277 2,236 1,758 -1,020 -1,118 176 226,902 2,190,028 65.3 277 2,364 1,812 -1,074 -1,233 193 226,787 2,190,045 65.2 277 2,492 1,865 -1,127 -1,348 210 226,672 2,190,062 65.0 277 2,621 1,921 -1,183 -1,463 227 226,557 2,190,079 63.6 277 2,749 1,977 -1,239 -1,577 245 226,443 2,190,097 65.1 278 2,877 2,030 -1,292 -1,691 265 226,329 2,190,117 65.9 279 3,005 2,083 -1,345 -1,806 287 226,214 2,190,139 64.8 280 3,133 2,137 -1,399 -1,920 308 226,100 2,190,160 65.1 279 3,261 2,192 -1,454 -2,033 330 225,987 2,190,182 64.7 280 CONFIDENTIAL 3,390 2,247 -1,509 -2,148 352 225,872 2,190,204 64.3 279 3,518 2,303 -1,565 -2,261 373 225,759 2,190,225 64.1 279 3,646 , 2,359 . -1,621 -2,374 394 .~ 2,190,246 63.9 279 . 3,709 2,387 -1,649 -2,430 403 2,190,255 63.8 278 3,772 2,416 -1,678 -2,485 412 225,535 2,190,264 61.4 277 3,835 2,447 -1,709 -2,540 420 225,480 2,190,272 60.0 277 3,898 2,478 -1,740 -2,594 428 225,426 2,190,280 59.7 277 3,962 2,511 -1,773 -2,648 436 225,372 2,190,288 58.4 277 4,026 2,546 -1,808 -2,701 443 225,319 2,190,295 55.1 277 4,090 2,583 -1,845 -2,752 451 225,268 2,190,303 53.9 277 4,187 2,642 -1,904 -2,829 463 225,191 2,190,315 51.8 278 4,250 2,682 -1,944 -2,877 470 225,143 2,190,322 48.5 278 4,313 2,726 -1,988 -2,922 477 225,098 2,190,329 44.7 278 4,377 2,772 -2,034 -2,965 485 225,055 2,190,337 42.4 280 4,441 2,820 -2,082 -3,007 493 225,013 2,190,345 41.1 280 4,504 2,868 -2,130 -3,047 501 224,973 2,190,353 39.5 278 4,567 2,917 -2,179 -3,086 506 224,934 2,190,358 37.1 277 4,630 2,968 -2,230 -3,123 512 224,897 2,190,364 35.9 277 4,694 3,020 -2,282 -3,160 517 224,860 2,190,369 35.7 277 4,758 3,072 -2,334 -3,196 523 224,824 2,190,375 35.3 277 4,822 3,124 -2,386 -3,233 528 224,787 2,190,380 34.4 278 4,886 3,178 -2,440 -3,268 533 224,752 2,190,385 32.7 276 4,950 3,232 -2,494 -3,301 538 224,719 2,190,390 31.3 276 5,079 3,342 -2,604 -3,368 547 224,652 2,190,399 31.3 277 5,207 3,452 -2,714 -3,433 556 224,587 2,190,408 30.9 277 5,335 3,562 -2,824 -3,497 566 224,523 2,190,418 30.3 277 5,462 3,672 -2,934 -3,560 575 224,460 2,190,427 29.8 278 5,588 3,782 -3,044 -3,622 584 224,398 2,190,436 29.2 276 5,714 3,891 -3,153 -3,683 592 224,337 2,190,444 29.9 277 5,839 3,999 -3,261 -3,746 601 224,274 2,190,453 30.3 277 5,967 4,110 -3,372 -3,809 609 224,211 2,190,461 30.2 276 6,156 4,273 -3,535 -3,905 621 224,115 2,190,473 30.8 276 6,284 4,383 -3,645 -3,970 629 224,050 2,190,481 30.8 275 6,409 4,490 -3,752 -4,033 637 223,987 2,190,489 31.2 276 6,533 4,596 -3,858 -4,097 645 223,923 2,190,497 31.0 276 6,657 4,703 -3,965 -4,160 653 223,860 2,190,505 30.5 276 6,781 4,810 -4,072 -4,222 661 223,798 2,190,513 29.8 276 6,906 4,919 -4,181 -4,283 668 223,737 2,190,520 29.5 275 7,035 5,031 -4,293 -4,345 675 223,675 2,190,527 28.7 275 7,163 5,144 -4,406 -4,406 681 223,614 2,190,533 28.5 274 7,354 5,312 -4,574 -4,496 690 223,524 2,190,542 27.4 274 7,544 5,482 -4,744 -4,581 698 223,439 2,190,550 26.4 273 7,732 5,651 -4,913 -4,663 703 223,357 2,190,555 25.1 271 7,921 5,823 -5,085 -4,740 706 223,280 2,190,558 23.5 272 8,111 5,998 -5,260 -4,815 709 223,205 2,190,561 22.9 270 8,297 6,170 -5,432 -4,886 710 223,134 2,190,562 21.9 269 8,484 6,344 -5,606 -4,955 710 223,065 2,190,562 21.2 269 8,675 6,522 -5,784 -5,023 710 222,997 2,190,562 20.7 268 8,837 6,674 -5,936 -5,079 710 222,941 2,190,562 19.8 269 8,900 6,734 -5,996 -5,100 710 222,920 2,190,562 19.8 269 CONFIDENTIAL 7/19/04 From 0:00 6:00 7:30 15:00 18:00 20:00 23:30 7/20/04 From 0:00 2:30 6:00 7:00 9:30 10:30 11:30 12:00 20:30 21:00 22:00 23:30 7/21/04 From 0:00 6:00 7:00 8:00 9:00 13:30 14:00 15:30 19:00 20:30 22:30 7/22/04 From To 6:00 7:30 15:00 18:00 20:00 23:30 0:00 To 2:30 6:00 7:00 9:30 10:30 11:30 12:00 20:30 21:00 22:00 23:30 0:00 To 6:00 7:00 8:00 9:00 13:30 14:00 15:30 19:00 20:30 22:30 0:00 To Hours 6.0 1.5 7.5 3.0 2.0 3.5 0.5 Hours 2.5 3.5 1.0 2.5 1.0 1.0 0.5 8.5 0.5 1.0 1.5 0.5 Hours 6.0 1.0 1.0 1.0 4.5 0.5 1.5 3.5 1.5 2.0 1.5 Hours . . Remarks Operation inactive Jack rig to HV #8 Install landing flange and build mud Fabricate bell nipple Connect mud flow lines. and landings. Build mud PU 5" HWDP and stand back in derrick, Work BHA, Spot Gyro, Gyro hand back lashed spool of wire working on straightening up NU Bell nipple having problems with flow line connecting to shakers, install rotary table Work BHA Remarks PU Motor and stabilizer. MU RIH tag bottom at 50.45 Break circulation and overboarded old mud in conductor. Drilled out cement and shoe on conductor pipe from 50'·111'. Drilled from 111'·153'. POOH. PU MWD/UPA. Oriented tools. RU Scientific Drilling. Ran Gyro. LD same. Directional drilled from 156'·260'. Ran Gyro Directional drilled from 260'·688'. Ran gyro @ 442'. RD Gyro. Pumped sweep @ 550'. C&C mud Pumped out of hole to 136'. PU 5" HWDP. rabbited same and RIH to 688'. Directional drilled from 688'-725'. APIG - 26.9 ftlhr ART· 2.9 hrs AST - 2.2 hrs Survey - 681' MD, 17.96 degrees, 272.55 Azimuth, 669.79' TVD Remarks Directional drilled from 725' to 1210' MD /1,142' TVD. C&C mud. Pumped gel sweep. Made short trip to 5" HWDP. RIH and tagged @ 1,200' (10' high). Washed down to TD @ 1,210'. CBU. Pumped gel sweep. POOH & LD BHA #1. Cleared off rig floor for casing equipment. RU 9-5/8" casing equipment. Held PJSM. Ran 9-5/8", 40#, L-80 BTC casing with shoe @ 1,193'. PU wt· 54K, SO wt- 40K C&C mud while rigging up cement equipment. Held PJSM. Tested cement lines to 3,000 psi. Performed cement job for 9-5/8" casing. Pumped 30 bbls mud push XL, followed by 67 bbls Class G Lead cement @ 12.8 ppg, followed by 31 bbls Class G cement tail cement @ 15.8 ppg. Displaced with 87 bbls 8.7 ppg WBM. Recovered 9 bbls cement at surface. Cement in place @ 2200 hrs. Bumped plug with 2,500 psi and tested casing to same for 30 minutes. Charted same. Bled off pressure and recovered .7 bbls. Float held. RD cement equipment. LD landing jt. Removed bail extensions. RD bell nipple and flow lines. Survey· 1210' MD, 35 degrees, 278 azimuth, 1,142 TVD Remarks HV-08 morning report summary_AFE162695, 162837, CONFIDENTAL: last revised 11/8/2004 Page 1 '0:00 2:00 3:00 5:30 7:00 12:00 14:30 7/23/04 From 0:00 4:30 5:30 9:30 10:00 12:00 13:00 14:00 14:30 7/24/04 From 0:00 5:00 5:30 7:00 8:00 7/25/04 From 0:00 4:30 8:00 8:30 11:30 13:30 17:00 20:00 21:00 22:00 7/26/04 From 2:00 3:00 5:30 7:00 12:00 14:30 0:00 To 4:30 5:30 9:30 10:00 12:00 13:00 14:00 14:30 0:00 To 5:00 5:30 7:00 8:00 0:00 To 4:30 8:00 8:30 11:30 13:30 17:00 20:00 21:00 22:00 0:00 To 2.0 1.0 2.5 1.5 5.0 2.5 9.5 Hours 4.5 1.0 4.0 0.5 2.0 1.0 1.0 0.5 9.5 Hours 5.0 0.5 1.5 1.0 16.0 Hours 4.5 3.5 0.5 3.0 2.0 3.5 3.0 1.0 1.0 2.0 Hours .Finished ND riser. Installed 11"5M MBS.head. Locked down hanger and tested seals to 5,000 psi for 30 minutes. LD mouse hole and prepped to skid rig. Happy Valley 07 Activity Skidded rig over well No. 7 RU Reeves Electric line unit. Held PJSM. Ran CCUGR/Neutron/Density/Sonic log from 10,194'-6,900'. Correlated to Schlumberger Array Induction log dated 7/16/04. RD Reeves. Skidded rig over well NO.8. Secured all stairs in place. NU adapter spool. NU BOPE. MU test jt and landed test plug. Remarks Tested BOPE to 250/3,000 psi. BOP test witnessed by Mr. Lou Grimaldi with AOGCC. LD test jt and test plug. Installed wear bushing. Installed mouse hole. PU BHA #2. Oriented MWD tool. RIH with 5" HWDP. Serviced rig. RIH with BHA#2. PU Ghost reamer and installed 813' above bit. Tagged float collar @ 1,149'. PU wt - 52K, SO wt - 46K, RT wt - 48K, RT Tq - 5K Drilled out shoe track and 20' new hole to 1,230' MD /1,159' TVD. C&C mud Performed LOT to 17.9 EMW (.95 psi / ft) Directional drilled from 1,230' to 2,294'. APIG - 45.2 ft/hr ART - 2.8 hrs AST -1.9 hrs Survey - 2,236' MD, 65.25 degrees, 277.48 azimuth, 1758' TVD Remarks Directional drilled from 2,294'-2,807'. C&C mud. Pumped hi-vis sweep. Pumped out of hole from 2,807'-1986'. RIH to 2,746'. Washed down to 2,807'. Pumped hi-vis sweep. Directional drilled from 2,807'- 4,045'. APIG - 72.9 ft/hr ART - 7.9 hrs AST - 3.5 hrs Survey - 4,026' MD, 55.11 degrees, 277.15 azimuth, 2,547' TVD Remarks Directional drilled from 4,045'-4,182'. MWD tool malfunction. Pumped at different rates and pumped 10 bbl water pill. Tool still not working. C&C mud while discussed with office. Decision made to set casing @ 4,182 MD. Pumped sweep. Pulled out of hole from 4,183' to 1,194 (short trip), Serviced rig RIH from 1,194'-4,183'. C&C mud. Pumped gauge sweep. POOH w/ DP. LD BHA #2. Pulled wear bushing. PU bail extensions. RU Weatherford casing equipment. Running 7", 26#, L-80 BTC Mod casing. Survey: 4,183' MD, 51.50 degrees, 277.28 azimuth, 2,640' TVD. Remarks HV-08 morning report summary_AFE162695, 162837, CONFIDENTAL: last revised 11/8/2004 Page 2 0:00 5:00 5.0 5:00 5:30 0.5 5:30 6:00 0.5 6:00 8:30 2.5 8:30 9:30 10:30 11:00 11:30 12:00 20:00 22:00 23:00 7/27/04 From 0:00 0:30 1:30 2:00 5:00 5:30 7/28/04 From 0:00 9:30 10:00 14:00 14:30 16:00 7/29/04 From 0:00 12:30 13:00 18:30 7/30104 9:30 1.0 10:30 1.0 11:00 0.5 11:30 0.5 12:00 0.5 20:00 8.0 22:00 2.0 23:00 1.0 0:00 1.0 .inished running 7", 29#, L-80 BTC Mod ag with shoe @ 4,168'. PU wt- 88K, SO wt - 40K Made up hanger, broke circulation. Landed hanger. Made up Schlumberger cement head and cement lines. Held PJSM for cement job. C&C mud Tested cement lines to 4,000 psi. Pumped 25 bbls Mudpush XL. Pumped 71 bbls of Class G lead slurry @ 12.8 ppg followed by 15 bbls Class G tail cement @ 15.8 ppg. Dropped plug and displaced with 156 bbls 9.1 ppg WBM. Bumped plug with 3,500 psi. Tested 7" casing to 3,500 psi for 30 minutes. Charted same. Bled off pressure and recovered 1 bbl. Floats held OK. Cement in place @ 0730 hrs. RD Weatherford and Schlumberger equipment. LD landing jt. Installed packoff in wellhead and tested same to 5,000 psi. Top job on 16" x 9·5/8" annulus. Serviced rig Installed wear bushing. PU BHA #3. TIH to and tagged float collar @ 4,085'. Drilled through float, shoe track and shoe. Drilled 20' new formation to 4,203'. C&C mud to 9.1 ppg. Performed LOT to a 14.9 ppg EMW (0.78 psi/ft). To Hours Remarks 0:30 0.5 Ream F/4169' - T / 4203' 1 :30 1.0 Drill F /4203' - T / 4246' 43' APIG 43' per hr. 2:00 0.5 CBU Pull to CSG. @ 4160' 5:00 3.0 Rig Repair (grabs) Downtime 3hrs. 5:30 0.5 TIH F/ 4160' - T /4246' Survey 0:00 18.5 Drilling F /4246' - T /5730' APIG 79.8' per hr. Rot hrs=8.7, Slide hrs= 3.3 total ft drilled 1547' To 9:30 Hours 9.5 Remarks Drilling F / 5730' - T /6403' Total ft. Drilled 2,200' Total APIG 75.8' per hr. Circ. & Condition Mud Pump High Vis Sweep. T.O.O.H ( Pump out). Tight F/5715'-5,642' Back reamed F /5,568' - T / 5,110' Pull last stand no pump Pulled free T /5,064' CBU ( pumped 1/2 % E.P. lube to surface) T.I.H. T / 6,341' Wash & Ream to BTM @6,403' Drilling F/ 6,403' - T /6963' Total ft Drilled 2760' Total APIG 74.6 per hr. Total hrs 37hrs. Survey @ 6906'· 29.47incl. 274.9azi, TVD 4919' Remarks Drilling 6 1/8 Hole F/ 6,963' - T /7,850' Total ft Drilled 3647' Total APIG 73.68' per hr. Total hrs; 49.5 Circulate Sweep out of hole 10% increase in cuttings Short trip F/7,850' - T/6,403' Back Ream Tight spots @ 7,500',7,172', 7103,7005 - 6,999',6,976',6878', Ghost Reamer 6,880' Still tight Pulled to last short trip depth. Plus 60' pulled clean. Trip back to T /7,850'. Ream the last 2 stands. Drilling 6 1/8 Hole F/7,850' - T /8,230' Total ft Drilled, 4,027' Total APIG 73.2' per hr. Total hrs; 55 . Survey 22.85 incl. 269.81 azm,@ 8,111' HV-08 morning report summary_AFE162695, 162837, CONFIDENTAL: last revised 11/8/2004 Page 3 10:00 14:00 0.5 4.0 14:30 16:00 0:00 0.5 1.5 8.0 To 12:30 Hours 12.5 13:00 18:30 0.5 5.5 0:00 5.5 'From 0:00 10:30 12:30 14:30 16:00 17:00 19:30 22:30 23:00 7/31/04 From 0:00 0:30 4:30 5:00 9:30 14:30 15:00 15:30 17:30 18:00 8/1/04 From 0:00 0:30 2:30 3:30 4:00 9:00 10:00 10:30 11:00 13:00 14:00 15:30 17:30 To 10:30 12:30 14:30 16:00 17:00 19:30 22:30 23:00 0:00 To 0:30 4:30 5:00 9:30 14:30 15:00 15:30 17:30 18:00 0:00 To 0:30 2:30 3:30 4:00 9:00 10:00 10:30 11:00 13:00 14:00 15:30 17:30 19:30 Hours &emarkS . 10.5 Drilling 61/8 Hole F/8,230' - T 18,900' TO. PU wt -140K, SO wt - 70K. Total ft Drilled, 4717' Total APIG 72.01' per hr. Total hrs; 65.5 . 2.0 Pumped hi-vis sweep. Circ. And Condition mud to 9.3 heavy. 2.0 Pumped out of hole for short trip from 8,900' to 7,800'. Tight spots from 8,900' to 8,670'. Rotated first 5 stands out. 1.5 TIH from 7,800' to 8,794'. Reamed to 8,900'. 1.0 Circulated carbide marker followed by hi-vis sweep. Carbide marker indication of 11 % excess volume. 2.5 Pumped out of hole from 8,900' to 7,580'. 3.0 TOO H T / 7,850' to 7" casing Shoe @ 4,168'. 0.5 Monitored well. No flow. Pumped dry job. Dropped rabbit. 1.0 TOOH T/3,270' Hours 0.5 4.0 0.5 4.5 5.0 0.5 0.5 2.0 0.5 6.0 Hours 0.5 2.0 1.0 0.5 5.0 1.0 0.5 0.5 2.0 1.0 1.5 2.0 2.0 Remarks TOO H Rabbit stuck pull jt. Retrieve Rabbit TOO H and Lay Down BHA R/U to log Happy Valley # 8 Ran in hole with Quad combo consisting of GRISP/Resistivity/Density Neutron/Sonic. Tagged @ 8,050'. Unsuccessfully attempted several times to get past 8,050'. Logged from 8,050' to 7" shoe @ 4,169'. POOh and changed centralizer to 3-1/4" to 2-1/4" cOllapsible type. Ran in hole with same Quad combo and tagged @ 8,052'. Worked several times. Worked through troubled spot and tagged TO @ 8,900'. Logged with Quad combo from 8,900' to 8,050'. POOH and logged from 7" shoe @ 4,169' to surface. RD Reeves wireline. Serviced rig. Rigged up Weatherford tongs and Baker equipment to run liner. Waiting on office to interpret logs. Held PJSM for liner job. Ran in hole with 3-1/2",9.2 BTC Mod liner T /4,613' Remarks Ran in hole with 3-1/2",9.2 BTC Mod liner F /4,613' - T /4,877' M / U Liner Hanger and Running tool. P/U 6 jts of HWDP. C&C mud. Made up CMT head on single stand back. Made up CMT head on single stand back. TilH with 3-1/2" liner to TO @ 8,900'. Had tight spots @ 8,105' & 8,620'. Washed through both spots with no problems. Tagged @ 8,900'. PU wt- 102K, SO wt - 64K. C&C mud. RU cement head. Held PJSM for cement, setting liner assy, and displacement. RU cement lines and tested to 4,000 psi. Pumped 15 bbls CW100 followed by 25 bbls Mudpush XLO followed by 145 bbls of Litecret cement @ 12.0 ppg. Dropped dart and displaced with 80.4 bbls 3% KCL water. Bumped plug with 3,000 psi. Held for 10 minutes, Bled off pressure. Floats held. Cement in place @ 1301 hrs. RD cement lines. Set liner hanger with 45K down weight. Released setting tool with 18 turns to right. PU 4' and SO setting packer with indication @ 25K down weight. Pressured up to 500 psi and PU out of tie back sleeve. When pressure decreased began displacement @ 7.8 BPM. Recovered +/- 15 bbls Mudpush. Displaced well with +/-200 bbls 3% KCL water. LD plug dropping head. Pulled 2 stands DP. Tested liner top to 2,000 psi for 30 minutes. TOOH & LD +/-1,000' DP Cut and slip drill line HV-08 morning report summary.fiFE162695, 162837, CONFIDENTAL: last revised 11/8/2004 Page 4 19:30 22:00 2.5 .TOOH & LD 2,276' DP, 735' HWDP and.er setting tool. 22:00 23:30 1.5 RIH with 2,900' DP from derrick. 23:30 0:00 0.5 TOOH & LD +/-370' DP 8/2/04 From To Hours Remarks 0:00 3:00 3.0 TOOH & LD +/-2500' 4" DP 3:00 4:30 1.5 TIH 40 stands 4:30 7:00 2.5 LID 40 std 4" Drill Pipe 7:00 7:30 0.5 Pulled wear bushing 7:30 8:30 1.0 RU Weatherford tong equipment 8:30 11:00 2.5 PU seal assembly. Ran 50 jts 3-1/2", 9.2# BTC Mod tubing, drifting same with 2.862". 11:00 11:30 0.5 PU Chemical injection mandrel SFO-1CI dressed with RCI-1 injection valve w/BK-2 latch. Made up same. Tested 1/4" SSCL .049" thickness control line to 5,000 psi. Rigged up Pollard equipment. MU control line to CIM. Tested 1/4" control line to 1,400 psi. No leaks. 11:30 15:00 3.5 Ran additional 81-joints total 131-joints 3-1/2",9.2#, BTC tubing. Pick up weight 40-K slackoff 30-K. Set down on top of liner top, rotated 1/2 round worked tubing stung inside liner top, kicked on pump slacked off pressure increased to 100-psi. Shutdown pump bled off pressure continued slacking off 27' to locator sub. P/U 40-K spaced out with locator l' above liner top. Picked up spotted 100-bbls BARACOR 100 corrosion inhibitor on back side. 15:00 19:00 4.0 Made up tubing hanger with 2.43' pup joint, made up control line and tested same. Landed hanger checked mark on tubing through casing valve unable to see mark, back out packing gland on tie down screw verified hanger landed. Screwed in tie down pins. 19:00 19:30 0.5 Pressure up on casing for 30-minutes to 1,620-psi Tested OK 19:30 22:00 2.5 Pressure up on tubing to 3,500-psi for 30-minutes good test. Control line pressure walked up with tubing test. Bled tubing off and function down hole valve, appeared to be working properly. Pressure back up on casing held 1,500-psi to ensure integrity of Control line no pressure on control line OK. 22:00 0:00 2.0 Installed BPV Nippling down BOPE, Nippled up Bottom Master and pressure tested Adapter flange tested to 5,000-psi. 8/5/04 From To Hours Remarks 0:00 6:00 6.0 Continue to rig down 6:00 18:00 12.0 Load trailers with Unocal equipment, pull down containment and spot RFR tanks at G&I for a prewash. Kuukpik dismantling rig and prep to load 18:00 0:00 6.0 Kuukpik continue to rig down 8/6/04 From To Hours Remarks 0:00 6:00 6.0 RD move to SRF 6:00 18:00 12.0 Continue to RD load trailers, Pick up liner and felt at HV, Stage equipment at DRF and start to stack sub base 18:00 0:00 6.0 Continue to RD load trailers, Pick up liner and felt, Steam clean white iron and remove OBM prep to move 8/7/04 From To Hours Remarks 0:00 6:00 6.0 Operation suspended 6:00 12:00 6.0 Finished moving rig structure. Moved in and spotted electric line equipment. Nippled up tree, pulled BPV, tested tree to 5000 psi. 12:00 20:00 8.0 Picked up SCMT log and RIH to 8825'. Picked up to 8818', tied into Reeves Sonic Quad Combo log of 7/31/04. Logged to 3790'. TOC at 4352'. HV-08 morning report summary_AFE162695, 162837, CONFIDENTAL: last revised 11/8/2004 Page 5 .Dropped down to 4500' and logged up to.o' for repeat run. POOH, made 2 field copies. RD, secure well. 20:00 0:00 4.0 SDFN 8/8/04 From To Hours Remarks 0:00 13:30 13.5 No activity. 13:30 16:00 2.5 Nippled up coil tubing BOPE. Pressure test to 300/3000 psi. Offloaded production test equipment. Met with Bruce Hershberger about spotting production testing equipment. 16:00 21:00 5.0 Started in hole with 1.75" coil tubing jetting at 200 scfm. RIH to 8815', set down. Picked up to 8800', increased N2 rate to 1000 scfm. Jetted well dry. Gauged frac tank, had recovered 49.75" (73 bbl) from well, which is 3.5 bbl short of total well capacity of 76.5 bbl. Total of 204 bbllease water in tank. POOH trapping 1175 psi nitrogen pressure on tubing. RD coil tubing. Laid liner and spotted production test equipment. Started making up hard lines. 21:00 0:00 3.0 SDFN 8/9/04 From To Hours Remarks 0:00 6:30 6.5 Well shut in with 1, 175-psi tubing, zero casing. 6:30 12:00 5.5 Held Safety Mtg. with crew, Installed Surface Safety Valves on NO.7 & 8 well. Finished making up hard lines on Test equipment (Choke manifold, Line heater, HP separator, Low separator, Flare stack and frac tank). 12:00 17:30 5.5 Pollard installed needle valve on tubing head flange for isolation of control line. EL Moved in rigged up on well. Picked up 20' 2.5" 6-SPF 60-degree phase hollow carrier guns loaded with 10.5 gm PJ2506 charges with safe firing head. Pressure tested lubricator to 300-low, 3,000- high, started in hole. 17:30 20:00 2.5 Finished GIH dropped down below Tyonek sand 8,650' logged up hole to 7,100' correlated with SCMT log 8/8/04 got on depth perforated 20' section @ 8,561'-8,581' Tubing 1,203-psi, pressure increased to 1,206-psi. POOH Guns had fired. 20:00 22:30 2.5 Picked up second 20' 2.5" 6-SPF 60-degree phase gun ran in hole correlated same position guns @ 8,541 '-8,561' fired guns POOH tubing pressure 1,202-psi, 1-hour 15-mins. Tubing 1,224-psi. Rigged down EL Shot fluid level @ 7,914'. Hauled 4-loads lease water to G & I from frac tank. 22:30 0:00 1.5 Opened well with 1 ,224-psi tubing pressure, maintaining 500-psi on separator. Tubing pressure came down to 500-psi and equalized with back pressure. Shut in well shot fluid level @ 7,600', pressure increased to 556-psi in 25-minutes. 8/10/04 From To Hours Remarks 0:00 2:30 2.5 Opened well with 556-psi tubing pressure to 16/64 choke, tubing fell to 68-psi @ 106-MCF/D rate. 2:30 4:00 1.5 Gas rate eventually increased to 134-MCF/D with 93-psi on tubing 16/64 choke. Gas rate slowly increasing wIno fluids. MJRU SL. (Pollard on location at 03:00 hrs) 4:00 5:00 1.0 Opened Choke to 20/64, tubing 83-psi rate 149-MCFD for 30-minutes. Opened choke to 48/64, tubing 48-psi rate 172-MCFD after 30-min. test. 5:00 10:00 5.0 Well flowing on open choke with 72-psi rate 234-MCFD rate. 10:00 11:30 1.5 Decide to run sample bailer (with well flowing) & Flowing Gradient SUNey. Anti Blow Up Tool and Tungsten Carbide Stem here at 11 :00 hours. Pressure tested lubricator. Start RIH with 2 1/4" Ball Bottom Sample Bailer at 11 :30 hrs. We added roller stem to tool string along with Anti Blow Up Tool and weighted Stem and still had problems getting in the hole. 11:30 16:30 5.0 Got out of hole with sample bailer with some perfs debris and mud sample from 8850' RKB (tool did not set down, it just stopped falling as we had HV-08 morning report summaryßFE162695, 162837, CONFIDENTAL: last revised 11/8/2004 Page 6 .minimal tool weight all the way in the hOI.d could not see spang jars- High Angle hole}. Heavy weights all the way out of hole to 3900'. 1900# off bottom at 8850', 1900# at 8000', 1700# at 5700', 1650# at 4800' and finally fell off to 1250# at 3900' and continued to drop off from 3900' to surface. (We have concerns trying to run 30' 2 1/2" perfs guns tomorrow, ask Schlumberger to bring supplies needed to switch all guns to 20' or less. (I sent Schlumberger home @ 17:00 hrs) 16:30 17:00 0.5 Switch tools over to Flowing Gradient Survey Gauges with ABUT, Weighted Stem and Roller Stem. RIH and not able to maintain 60 FPM speed. 17:00 22:30 5.5 Made 10 minute stop at 8750' RKB and POOH hole at 60 FPM (Got relief Pollard crew out at 20:30 hrs to finish survey and rig down.) 22:30 23:00 0.5 Down loaded gauges which showed temperature drop across perfs and fluid gradient below existing perfs and gas gradient above perfs. 23:00 0:00 1.0 Rig down Pollard. Current well status is 41# Tbg Psi, Rate 330 MCF/D at 48/64ths choke setting Sent fluid sample with Pollard to Dan Marlowe at EFDF Identified gas gradient above perfs at 8541' to 8581' and fluid gradient below on flowing survey! Continue flowing well to test pack. 8/11/04 From To Hours Remarks 0:00 5:00 5.0 Production flowed well all morning at 352 MCF/PD at 41# tbg Psi and 48/64ths choke 5:00 5:45 0.75 Shut in well after talking with Gary Eller to let build up prior to perforating 5:45 6:15 0.5 Schlumberger on location 6:15 6:30 0.25 Held PJSM with production and wireline crew. Went over explosives check list with crews. 6:30 7:30 1.0 Rig up Schlumberger and arm 11' gun 7:30 8:30 1.0 Open swab and RIH. Well has 1500# tbg Psi 8:30 9:15 0.75 Tied in to short joint at 7012' on Schlumberger SCMT dated 8/8/04 on way in hole. Tie in CCl at depth & Shot 11' Gun of (2.5" 2506 P J 6 spf) at 8391' to 8402' (Tied in to Sch/umberger SCMT dated 8/8/04) . Tbg Psi was 1852# and increased to 1858# on shot. 9:15 10:00 0.75 POOH. Tbg Psi is 1922# psig. lay down spent guns, all charges fired. 10:00 10:15 0.25 Pick up 10' gun. Stab lubricator and open swab. Tbg pressure is 1941# psig RIH 10:15 11:30 1.25 Tie in to CCl and shoot 10' gun (2.5" 2506 P J 6 spf) at 8265' to 8275' (SCMT dated 8/8/04). Tbg pressure was 1997# psig and we saw no rise on shot. POOH 11:30 12:00 0.5 lay down gun, all shoots fired. Tbg Psi is 2013# 12:00 12:15 0.25 Pick up gun #3 20' gun. Stab lubricator & open swab valve. Tbg Psi 2013# 12:15 13:39 1.4 RIH & tie in with CCL. Shoot 20' gun (2.5" 2506 P J 6 spf) at 8245' to 8265' tied to SCMT dated 8/8/04. Tbg Psi was 2033# psig and we saw no rise in pressure 13:39 14:09 0.5 POOH. lay down guns, all shoots fired 14:09 15:30 1.35 Pick up 10' of guns. RIH. Tbg pressure was 2055# when at depth. Crack well on and bleed surface tubing pressure down to 1410# 15:30 16:00 0.5 Tied in on depth at 7947' to 7957' to (SCMT dated 8/8/04) with CCl and shut well in. Shot 10' of (2.52506 P J 6 spf) at 1410# tubing. 16:00 16:45 0.75 POOH lay down 10' spent guns. All shoots had fired. Tbg Psi 1657# 16:45 17:45 1.0 Pick up 20' of guns. Stab lubricator & open swab & RIH Tbg Psi 1763#. RIH to depth bring well on from 1928# tbg Psi down to 1348# tbg Psi after tying in with CCl 17:45 18:30 0.75 Shoot 7908' to 7928' tied into SCMT dated 8/8/04 with (2.5" 2506 P J 6 spf) guns at 1348# tbg Psi. Shut in well & POOH 18:30 0:00 5.5 Schlumberger out of hole (all shoots fired) rig down, do paper work & send home. Production bringing well on at 20:00 hrs at 635 MCF/PD 1000# tbg Psi. Call town talk with Eller and open well up and drop tbg Psi to 500#. End HV-08 morning report summary_AFE162695, 162837, CONFIDENTAL: last revised 11/8/2004 Page 7 .up losing rate. Jack methanol rate up. Mi.ht 504# tbg, rate 451 MCF/PO, tbg temp 40°. 8/12/04 From To Hours Remarks 0:00 5:00 5.0 Flow Test Rate 483 MCF/PD at 505# tbg psi and 48/64th choke 5:00 6:00 1.0 PJSM with production and peak 6:00 7:00 1.0 SIMOPs with construction, production and CIC. Cowie started orientation of construction crews 7:00 8:00 1.0 Eller called and team decision made to flow well and not survey. Well rate 492 MCF/PO at 506# and 48/64ths choke 8:00 11:00 3.0 OBM and water lines are pulled from pad,. Toloff crew rigging up hammer. CIC working on drain tile job. 11:00 18:00 7.0 Load up OBM and water lines, extra light plant, PTS cement blocks, waste oil boxes, and used lube oil drums for shipment off location. 18:00 0:00 6.0 Continue to flow test well 8/13/04 From To Hours Remarks 0:00 6:00 6.0 Continue to monitor well rates and pressures. Rate = 539 mcf/d, TP = 501 psig 6:00 10:00 4.0 CIC on location to work on pad, Toloff driving piling for production enclosures. 10:00 11:00 1.0 Unocal mechanic service triplex pump and engine 11:00 12:00 1.0 Continue to monitor well rates and pressures. Rate = 599 mcf/d, TP = 504 psig 8/14/04 From To Hours Remarks 0:00 5:30 5.5 Continue to monitor well rates and pressures. Rate = 612 mcf/d, TP = 505 psig. 5:30 6:00 0.5 Increase BPV setting on separator to 900 psig as per procedure. Trying to obtain stable flow rate. 6:00 8:00 2.0 BP valve on sep is surging. Set choke skid choke at 10/64 to maintain 900 psi FTP. Set skid pressure at 540 psi. Well is producing 572 mcfd with 903 psi FTP. 8:00 9:45 1.75 PJSM, rig up Pollard Slickline and pressure test to 3000 psi 9:45 11:00 1.25 RIH with 1 3/4" GR down to 8820. No problems. POOH 11:00 17:00 6.0 RIH with tandem pressure gauges. Log 60 fpm to 7600', 30 fpm to 8750' and same coming out of hole. No problems 17:00 18:00 1.0 Rig down Pollard Slickline 18:00 0:00 6.0 Continue flow testing. At midnight well was producing 580 mcfd with 891 psi FTP. 8/15/04 From To Hours Remarks 0:00 5:00 5.0 Continue to monitor well rates and pressures. Rate = 580 mcf/d, TP = 891 psig @ 10/64 choke setting 5:00 6:00 1.0 PJSM, rig up Pollard slickline and pressure test to 2500 psi. 6:00 8:30 2.5 RIH with 2.75" gauge ring to 7950'. Hung up coming out at 4056'. Jarred up once to 4043', jarred up second time and came free. POOH. 8:30 9:30 1.0 RIH with 2.70" gauge ring to 4200' and back up to 3900'. Went down to 7950' and POOH, no problems. 9:30 10:30 1.0 RD Pollard slickline. 10:30 12:00 1.5 PJSM, rig up Schlumberger and pressure test to 3000 psi. 12:00 14:30 2.5 MU and RIH with 2.70" Halliburton Fasdrill composite bridge plug. Correlate to SCMT log, set plug at 7881'. Pulled over 50 Ibs at 4056' while POOH (2.25" 00). HV-08 morning report summary_AFE162695, 162837, CONFIDENTAL: last revised 11/8/2004 Page 8 14:30 16:00 18:30 20:00 22:00 22:45 8/16/04 From 0:00 0:22 1:55 6:00 11:30 13:00 14:00 15:00 15:15 16:00 16:45 17:45 8/17/04 From 0:00 7:00 8:00 9:30 10:00 12:00 13:00 14:00 15:00 16:00 17:00 16:00 18:30 20:00 22:00 22:45 0:00 To 0:22 1:55 6:00 11:30 13:00 14:00 15:00 15:15 16:00 16:45 17:45 0:00 To 7:00 8:00 9:30 10:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 1.5 2.5 1.5 2.0 0.75 1.25 Hours 0.37 1.55 4.08 5.5 1.5 1.0 1.0 0.25 0.75 0.75 1.0 6.25 Hours 7.0 1.0 1.5 0.5 2.0 1.0 1.0 1.0 1.0 1.0 1.0 .Bleed pressure down from 1872 psi to 1.Si to check plug while Schlumberger loading select-fire gun. Pressure stabilized at 1015 psi. RIH with select-fire 2.50" guns loaded 6 spf. Tied in with SCMT log, spotted gun #1 6770'-6780', fired guns. Pressure rose from 1025 psi to 1027 psi. Spotted gun #2 6757' - 6763', fired guns. Pressure stayed at 1027 psi. POOH. Guns pulled 50 Ibs over at 4056'. All shots fired. MU and RIH with gun #3 (same 2.5" hal/ow carrier guns as previous). Pressure was 1028 psi. Tied in with SCMT, perf 6736'-6746'. No change in pressure. POOH. Did not note any problem running through tight spot at 4056'. RD Schlumberger, turn well over to production. Shoot fluid levels at 7876 / 7875/7874. Flow well to reduce TP from 1027 psi to 500 psi. Shut-in well to monitor for pressure buildup. At midnight, TP = 513 psi, CP = 0 psi. Remarks TP = 513 Shoot F/L = 7815/7812/7812. Open well to bring TP down to 50 psig TP = 50 PC = 0 TP = 75 PC = 0 Continue to monitor well, download SPYDR PJSM, rig up Pollard Slickline and pressure test to 2000 psi. MU and RIH with 2.80" swedge down to 1300'. Pull tools due to drag. POOH RIH with 2.75" GR with 2.74 swedge on top to 3000'. Had 900# drag. Call town and was told to dump 25 gal diesel. Pumped 25 gal of diesel in well. Diesel got rid of the tool drag. Continued in hole without the drag down to 7913'. (slickline measurement with KB added in). Saw a small wt bounce at 4056'. POOH RIH with 2.80 swedge down to 4100'. Pulled back up and got small wt increase at 4056. POOH Rig Pollard down. It seems if you run flat shoulder tool it will hang up at 4056'. Continue to monitor well / TP = 1022, PC = 0 Remarks Continue to monitor well / TP = 1055 PC = 0 PJSM, rig up Schlumberger and pressure test to 3000 psi RIH with gun #1 ,2.5" HC, 6124' - 6130' and gun #2,6112' - 6120'. Put guns on depth to SCMT log (all perf depths referenced to SCMT fog), bled pressure to 1002 psi. Attempted to fire guns. Guns would not fire. POOH (Found bad detonator) RIH with gun #1 ,2.5" HC, 6124' - 6130' and gun #2,6112' - 6120'. Put guns on depth, pressure was 1012 psi. Fired guns and pressure went to 1014 psi. POOH. (7psi first hour after perf these two zones) AI/shots fired RIH with #3 gun, 2.25" , 6096 - 6106'. Put gun on depth, bled pressure from 1029 psi to 1002 psi. Fired guns and pressure went to 1004 psi. POOH ( 37 psi first hour after this perf) All shots fired RIH with #4 gun, 2.25" HC, 6069'-6079'. Put gun on depth, bled pressure from 1059 psi to 1003 psi, Fired guns and pressure went to 1006 psi. POOH (85 psi first hour after this perf) AI/ shots fired RIH with #5 gun, 2.25" HC, 5288-5297'. Put guns on depth, bled pressure from 1192 psi to 1030 psi. HV-08 morning report summary_AFE162695, 162837, CONFIDENTAL: last revised 11/8/2004 Page 9 · ' 18:00 19:00 20:00 21:00 22:00 23:00 23:45 8/18/04 From 0:00 6:00 9:00 16:00 8/19/04 From 0:00 6:00 18:00 19:15 20:45 8/20/04 From 0:00 2:15 3:15 6:00 8/26/04 From 0:00 9:00 13:00 15:00 17:00 19:00 20:00 21:00 22:00 23:00 23:45 0:00 To 6:00 9:00 16:00 0:00 To 6:00 18:00 19:15 20:45 0:00 To 2:15 3:15 6:00 0:00 To 9:00 13:00 15:00 17:00 19:00 1.0 1.0 1.0 1.0 1.0 0.75 0.25 Hours 6.0 3.0 7.0 8.0 Hours 6.0 12.0 1.25 1.5 3.25 Hours 2.25 1.0 2.75 18.0 Hours 9.0 4.0 2.0 2.0 2.0 .Fired guns and pressure went to 1032 P.OOH (160 psi first hour after this perf) All shots fired RIH with #ß gun, 2.25" HC. 5245' -5253'. Put guns on depth, bled pressure from 1292 psi to 1003 psi. Fired guns and pressure went to 1006 psi. POOH (198 psi first hour) All shots fired RIH with #7 gun, 2.25" HC, 5226 - 5235. Put guns on depth, bled pressure from 1234 psi to 1018 psi. Fired guns and pressure went to 1020 psi. POOH (201 psi first hour and six minutes) All shots fired Rig Schlumberger lubricator and tools down. Take fluid level shots: fluid level at 6742'. Continue to rig Schlumberger down Remarks Flow test well @ TP = 750 & Rate = 630 mccf/d Flow test well @ TP = 786 & Rate = .835 mccf/d Flow test well @ TP = 784 & Rate = 1.024 mmcf/d changed o.p. from .875 t01.25 Continue to flow test well @ TP = 823 & Rate = 1.100 Remarks Continue to flow test well @ TP = 827 & Rate = 1.104 mmcf/d Continue flow test, TP = 849 & Rate = 1.171 mmcf/d PJSM, rig up Pollard slickline , pressure test to 2500 psi. RIH with 1 3/4" GR and hydraulic jars. Tools falling slow due to Schlumberger grease. Pumped 25 gals of diesel and tools went down smooth. Tagged fill at 7902' (KB WLM). POOH MU and R/H with tandem pressure gauges while flowing the well. 60 FPM to 4800' and 30 FPM to 7000'. Remarks Continue running tandem pressure gauges out of well, 30 FPM to 4800' and 60 FPM to surface. Download data and rig down. Turn well over to testing. Continue to flow test well @ TP = 859 & Rate = 1.194. Shut in well and move SPYDR to wellhead. Secure well, SD testing operations for construction blackout. SPIDR gauge gathering pressure buildup data. Remarks No operations Schlumberger crew arrive. Re-head line, pressure test to 4000 psi and wait on Schlumberger engineer. Bled well down to 850 psi. RIH w/10' of 2.5",6 spf Hollow Carrier perf gun to 7070'. Tie if! with SCMT log dated 8-8-04. Spot perf gun from 6789' - 6799'. TP was 860 psi. Fired perf gun and tubing pressure stayed at 860 psi. POOH. All shots fired. Gun run #1 RIH w/6' of 2.5", 6 spf Hollow Carrier perf gun to 7070'. Tie in with SCMT log dated 8-8-04. Spot perf gun from 6757' - 6763'. TP was 850 psi. Fired perf gun and tubing pressure stayed at 850 psi. POOH. All shots fired. Gun run #2 RIH w/10' of 2.5",6 spf Hollow Carrier perf gun to 7070'. Tie in with SCMT log dated 8-8-04. Spot perf gun from 6736' - 6746'. TP was 837 psi. Fired HV-08 morning report summary_AFE162695, 162837, CONFIDENTAL: last revised 11/8/2004 Page 10 23:00 0:00 1.0 .perf gun and tubing pressure stayed at 8.Si. POOH. All shots fired. Gun run #3 RIH w/14' of 2.5",6 spf Hollow Carrier perf gun to 7070'. Tie in with SCMT log dated 8-8-04. Spot perf gun from 6500' - 6514'. TP was 828 psi. Fired perf gun and tubing pressure went to 830 psi. POOH. All shots fired. Gun run #4 RIH w/20' of 2.5", 6 spf Hollow Carrier perf gun to 7070'. Tie in with SCMT log dated 8-8-04. Spot perf gun from 5723' - 5743'. TP was 822 psi. Fired perf gun and tubing pressure went to 823 psi. POOH. All shots fired. Gun run #5 RIH w/24' of 2.5", 6 spf Hollow Carrier perf gun to 7070'. Tie in with SCMT log dated 8-8-04. Spot perf gun from 5688' - 5712'. TP was 832 psi. Pinched choke from 17/64 to 16/64 to bring pressure up. . ' 19:00 21:00 2.0 21:00 23:00 2.0 8/27/04 From To Hours Remarks 0:00 1:00 1.0 Fired perf gun and TP went to 833 psi. POOH. All guns fired. Gun run #6. Cut heater choke to 15/64" 1:00 2:00 1.0 Rig down and turn well over to production to flow test. 2:00 13:30 11.5 Continue to monitor well and record tubing pressure and flow rates. 13:30 14:30 1.0 PJSM, rig up Pollard Slickline and pressure test to 3000 psi. TP - 804 psi 14:30 16:15 1.75 RIH with 2.30 GR and tag fill at 7892' (KB) No problems. Shows 10' fill from last tag run dated 8-19-04 16:15 20:15 4.0 RIH with tandem pressure/temp gauges. Log 30 fpm from 4700' to 7300' and 7300' to 4700'. 20:15 21:15 1.0 Rig down Pollard, download data and turn well over to production. TP - 776, Flow 1.051 mmcf 21:15 0:00 2.75 Continue to monitor well and record tubing pressure and flow rates. HV-08 morning report summary_AFE162695, 162837, CONFIDENTAL: last revised 11/8/2004 Page 11 11/ [F;d: [Fw?: RE: Unocal's gas well 9 miles <tÞll rd. Ninilchik]] . .. e ~0tJ ·/1 LJ Subject: [Fwd: [Fwd: .R.E:Ünocal's gas welt 9 miles oìlwell rd. Ninìlcliik]] From: John Nonnan <john_norman@admin.state..ak.us> Date: Mon,23 Aug.2004 17:23:24. -0800 Jody, please put a copy in EACH of the Happy Valley well files. Thanks -------- Original Message -------- Subject:[Fwd: RE: Unocal's gas well 9 miles oilwell rd. Ninilcliik] Date:Mon, 23 Aug 200415:20:04 -0800 From:Tliomas Maunder <tom maunder(ClJadmin.state.ak.us> Organization:State of Alaska To:John Norman <john norman(ClJadmin.state.ak.us>, Daniel T Seamount JR <dan seamount(ClJadmin.state.ak.us>, Bob Crandall <bob crandall(ClJadmin. state. ak.us>, Robert Mintz <robert mintz(ClJlaw.state.ak.us> CC:Jody J Colombie <jody colombie(ClJadmin.state.ak.us> All, It appears that there may be a potential issue brewing in the Happy Valley area. If! receive any further emails, I will forward them on. Tom -------- Original Message -------- Subject:RE: Unocal's gas well 9 miles oilwell rd. Ninilcliik Date:Mon, 23 Aug 2004 15 :03: 18 -0800 From:Josepli Kaslii <kaslii(ClJalaska.net> To:'Thomas Maunder' <tom maunder@admin.state.ak.us> CC:'pliillip yezierski' <pliilski9@yahoo.com>, 'Carol D Lee' <carol lee@dnr.state.ak.us> Dear Ms. Lee: As you can see from the prior Emails set out in the thread below, I am inquiring about whether any production units have been established in the Caribou Hills east of Ninilchik on Oilwell Road. Your assistance is appreciated. Thanks Joe Kashi -----Original Message----- From: Thomas Maunder [mailto:tom maunder@admin.state.ak.us] Sent: Monday, August 23, 2004 2:30 PM To: Joseph Kashi Cc: 'phillip yezierski'¡ Carol D Lee Subject: Re: Unocal's gas well 9 miles oilwell rd. Ninilchik Mr. Kashi, Here is the text of an email r sent to Mr. Yezierski last week in response to his questions. r am sorry r did not copy you on that response. With regard to your specific questions on production units, I suggest you contact Ms. Carol Lee at the Division of Oil and Gas (DOG). Her eddress is above. 100 8/25/2004 2:50 PM · [~:d: [F~d: RE: Unocal's gas well 9 miles _II rd. Ninilchik)] e Tom Maunder, PE AOGCC Mr. Yezierski, The Unocal development you are referring to is called Happy Valley and is within the Deep Creek Unit administered by the State Division of Oil and Gas. The AOGCC has issued permits for 8 wells to be drilled from the same pad located in section 22. According to the information published for these wells, 4 wells reach total depth in section 22 and 1 each in sections 14, 15, 21 and 28. No wells have been proposed for sections 23 or 24. OUr regulations do require notice to landowners depending on the distance from the proposed activity. In the case of these gas wells, all owners within 3000' laterally of the well at the production zone should be notified. Although you did not provide the footage distances to the section lines for your property, it would appear that it is likely beyond the 3000' notice distance. If you would like, we can add you to our notice list for any activities that require public notice in this area. You may also explore our web site at www.aogcc.alaska.gov. In the "Orders" section under conservation orders you will find several orders relating to the drilling of the wells at Happy Valley. "Drilling Statistics" would have information regarding when permits are issued or wells are completed. With regard to Unit administration and other land activities, you might contact Ms. Carol Lee at the Division of Oil and Gas. I have included her eddress above. I hope this information is of help. Tom Maunder, PE AOGCC Joseph Kashi wrote: >Please advise whether any production units have been established in this >area and if so, what are the boundaries. If there is a different state >agency to contact in that regard, please advise with contact name and >contact information. > >Thanks > >Joe Kashi >AK Bar #7811107 > >-----Original Message----- >From: phillip yezierski [mailto:philski9@yahoo.com] >Sent: Friday, August 20, 2004 12:19 PM >To: tom maunder@admin.state.ak.us >Cc: kashi@alaska.net >Subject: Unocal's gas well 9 miles oilwell rd. Ninilchik > >Dear Mr. Maunder, > >As per our conversation on August 20,2004 at 11:20 >a.m. > >I own property approximately 10.5 miles down oilwell 20f3 8/25/2004 2:50 PM · [~wd: [~,,:d: RE: Unocal's gas well 9 miles .11 rd. Ninilchik]) \ >Rd. in Ninilchik from the Sterling Hwy. The Legal >description is as follows. T02S R13W S24 HM0730482 >Alaska State Land Survey 72-81 Tract A. > >Upon my inspection of the property on August 19,2004 I >noticed the installation of a 12" pipeline from a >Unocal facility at about 9 miles on oilwell rd. from >the Sterling Hwy. > >I own the Mineral Rights to the above mentioned >property and would like to know if I am due a >consideration for possible oil or gas which this well >might be producing and might be part of what lies >beneath my property. > >Any questions I can be reached at (907)252-5239 >Very truly yours > >Phillip Yezierski > > > > > ... on .. . .. ..............=.==....,........ ... .......................,.=,==..,=.-=.="'..0,.""". John K. Norman <John Norman@admin.state.us> Commissioner Alaska Oil & Gas Ccnservation Commission 30f3 e 8/25/2004 2:50 PM . lID F !Æ -JÆ~ . FRANK H. MURKOWSKI, GOVERNOR AltA.~1iA. OILAlWD GAS CONSERVATION COMMISSION Steven S. Lambe Advising Drilling Engineer Union Oil of California (Unocal) P.O. Box 196247 Anchorage, Alaska 99519 Re: Happy Valley #8 Union Oil of California (Unocal) Permit No: 204-114 Surface Location: 1324' FSL, 1203' FEL, SEC. 22, T2S, R13W, S.M. Bottomhole Location: 2062' FSL, 1173' FEL, SEC. 21, T2S, R13W, S.M. Dear Mr. Lambe: 333 W. r>' AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501·3539 PHONE (907) 279-1433 FAX (907)27~7542 Enclosed is the approved application for permit to drill the above referenced exploration well. 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. Unocal assumes the liability of any protest to the spacing exception that may occur. This permit to drill does not exempt you ITom obtaining additional permits or approvals required by law ITom 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. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals ITom below the permafrost or ITom where samples are fIrst caught and 10' sample intervals through target zones. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at (907 659 7 (pager). BY ORDER OF THE COMMISSION DA TED this$o. day of June, 2004 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. · Unocal Corporation . P.O. Box 196247 Anchorage, AK 99501 Telephone (907) 263-7660 Er' ¡CD' '..-. j \, '¡::.. ... . JUN24 2004 UNOCALe Wednesday, June 23,2004 Alaska Oil and Gas Conservation Commission 333 West yth Avenue Anchorage, Alaska 99501 Attn: Commission Chair John Norman Re: Application for Permit to Drill (Form 10-401) Happy Valley #8 Dear Commissioner Norman, Attached for your approval is an application for permit to drill (Form 10-401) for the Happy Valley #8 Well. Unocal respectfully requests a waiver of the requirement for a diverter on the 12-1/4" / surface hole as allowed under AOGCC Regulation 20 AAC 25.035 (h) (2). Please refer to attached supporting documentation. The anticipated spud date is approximately July 3rd. If you have any questions please contact myself at 263-7637. 371' d Steven Lambe Advising Drilling Engineer SSUs Enclosure OR\G\NAL 2. Operator Name: Union Oil of California (Unocal) 3. Address: PO Box 196247, Anchorage, Alaska, 99519 4a. Location of Well (Governmental Section): Surtace: 1324'FSL, 1203'FEL, Sec. 22, T2S,R13W,S.M. Top of Productive Horizon: 1768'FSL, 917'FWL, Sec. 22, T2S, R13W, S.M Total Depth: 2062'FSL, 1173'FEL, Sec. 21, T2S,R13W,S.M 4b. Location of Well (State Base Plane Coordinates): Surtace:x- 228065 y- 2189865 Zone- 16. Deviated wells: Kickoff depth: Maximum Hole Angle: 1 a. Type of Work: 18. Casing Program: Size Casing 16" Hole 26" 12-1/4" 8-1/2" 6-1/8" 9-5/8" 7" 3-1/2" 19. Total Depth MD (ft): Casing Structural Conductor Surtace Intermediate Production Liner Pertoration Depth MD (ft): o /Develôl~it;'ent Oil 'Ò~j)~iple Zone 0 o Development Gas 0 Single Zone 0 Single Well 0 11. Well Name and Number: 5534278 Happy Valley #8 ./ 12. Field/Pool(s): 6600 Wildcat in Beluga ~ 13. Approximate Spud ~ (1/3!2)J04 14. Distance to Neare~ ,...-- 3040 Property: \91þ 10. KB Elevation 15. Distance to Nearest Wetr (Height above GL): 22.5 feet Within Pool: None 17. Maximum Anticipated Pressures in psig (see 20 Me 25.035) Downhole: 2950 /' Surtace: 1732 /' Setting Depth Quantity of Cement c.f. or sacks .. STATE OF ALASKA _ A~ OIL AND GAS CONSERVATION COrvW>S/ON PERMIT TO DRILL 20 MC 25.005 lib. Current Well Class: Exploratory Stratigraphic Test 0 Service 5. Bond: Blanket 0 Bond No. 6. Proposed Depth: MD: 8876 7. Property Designation: C-061590 8. Land Use Permit: N/A - Private 9. Acres in Property:. Drill 0 Redrill 0 Re-entry 0 TVD: 4 150 feet 65 degrees Specifications It- ~ I z.. Cfj"2..LJ 0 4- ,...'" ". '), . ... .. r,,\ ~ f=nr.:;;, l "",~~",,·fi ~"J~¡>!; -¡ 'Y,.- ~>!I~ëoi" '(,"'v# n I N 6.. á .;..... 'i.J· U- 4ft '\JtJ :t!&..-, Weight Grade 68 K-55 40 L -80 26 L-80 9.2 L·80 Coupling Welded BTC BTC-Mod BTC-Mod MD TVD 0 0 0 0 0 0 4300 2697 Bottom MD TVD (including stage data) 86 86 External Cmt to surtace /' 1200. 1142 110 bbls,)82 sx 4500 2838 94 bbls;'254 sx /. 8876 6600 142 bbls, 324 sx Top Length 86 1200 4500 4576 PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Length Size Cement Volume Junk (measured): MD rvD Drilling Program ~ Seabed Report 0 Pertoration Depth TVD (ft): Time v. Depth Plot lJ" Shallow Hazard Analysis U Drilling Fluid Program 0 20 Me 25.050 requirements 0 Date Contact Filing Fee ~ BOP Sketch ~ Property Plat 0 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. 20. Attachments: Printed Name Signature Permit to Drill Number: Z CJ 7' - Conditions of approval: Advising Drilling Enigeer ste"'osïJ-~a · //. T;II. J. . ff ._____Phone Commission Use Only IAPI Number: IPermit Approval I. . / //y 50· 23/- ;¿ðð2- ~ Date: tp¡3¿;>/oC{ 263-7637 Þ- o NO.,)( Mud log required o N0;Kf Directional survey required rt''''/ eJ N' j;tA...e..L<'.J- / s. ~t.-ICc/ i/f J , r) BY bRDER OF THE COMMISSION Date: ORJGINAL Samples required Yes g sulfide measyres Yes .~ 000 í'Š{, t '55 (h )ll) ) d¿,v~.f f),v '- Date 23-Jun-04 I See cover letter for other requirements. Yes 0 Yes ;g No ~ No 0 7"56 f1 Submit inDuplicate ~ . . WAIVER REQUEST Unocal respectfully requests waivers to; (1.) AOGCC regulations 20 AAC 25.035 (C) WAIVER #1 : Unocal request permission to drill the 12-1/4" surface hole to a depth of +/- ~ 1200 MD/1142'VD' without a diverter. AOGCC regulation 20 AAC 25.035 (h) (2) stipulates: (h) IlUpon request f the operator, the commission will, in its discretion, approve a variance ...... (2) from the diverter system requirements in (C) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary. " Based on our experience drilling 12 %" surface holes in Happy Valley #1, #2, #3, #4, #5 & #6 it has been proven conclusively that no shallow gas hazards exist beneath this pad to a depth of at least 1000' BRT. The 12-1/4" surface hole for Happy Valley #8 will be drilled from the same pad as Happy Valley Wells #1 through #6 (within +/-225'), and to the approximate same depth as the previous Happy Valley surface holes. The Geologist, Dave Buthman, has reviewed the shallow geology and has prepared the following summary of the shallow lithology: From surface to 1150' VD beneath the Happy Valley surface pad, we anticipate the following lithologies: 0-300': interbedded med to coarse grained sand and coarse gravels 300-1150': interbedded light gray silty claystones, argillaceous siltstones, gray silty claystones, light gray fine to medium grained sandstones, with a few thin brown lignitic coals. We do not anticipate any significant faulting, nor do we expect any oil or gas to be trapped, as no suitable seals exist within this shallow section. For the purpose of basic risk mitigation, Unocal Will~·. z~ a gel/native spud mud which is expected to weigh approximatel 9.,a/ppg when drilling at the planned surface hole TD of 1150', to eliminatee risk of a shallow water flow. . . Happy Valley #8 Bullet Procedure Install cellar for containment wI 16" conductor string Prepare pad & install liner, tankage & berms Turnkey rig move on same pad (includes riser/flowline nipple up) Rig Acceptance. Hold pre-spud & HES meetings. Mix mud, RU pipe handling equipment, etc. PIU portion of BHA . Clean out conductor & drill out shoe / PU remainder of BHA & drill string Drill 12 1/4" hole from: 0' to: 1200' MD 11142' VD / Circ clean & pump carbide indicator Pump out to BHA & POH UD BHA Clean rig floor & RU to run 9 5/a" csg ,,/ RIH w/ 9 s/a" surface casing Land casing, M/U head, establish circulation RU to cement & conduct safety meeting . Pressure test lines & cement 9 5/a" casing / RD casing running equipment _~~ // .,1 NU & test MBS wellhead 6 /' NU BOPE, choke/killlines & test to 250 ,0g.o1ísi / PU BHA . ,/",/ RIH w/a 1/2" steerable BHA Drill out & perform LOT Changeover from spud mud to KCI-WBM / Drill a 1/2" hole from: 1200' to: 4500' MD 12a3a' VD " Circulate clean (& pump nut plug sweep) POH wI a 1/2" BHA POH reaming & LID BHA / RU & run 7" casing Land casing (includes w)tshing down) & circulate Cement 7" casing / RD cementers & casing running equipment Set pack-off & test 7" casing Change 7" rams to 4" rams & weekly test // MU steerable BHA & test RIH Drill out & perform LOT Drill 6 1/a" hole from: 4,500' MD to: 6,600' MD /4,629' VD / Drill 6 1/a" hole from: 6,600' MD to: a,a7a' MD I 6,600' VD Circulate sweep, SIT, check for swabbing, etc. POH (assumes pump out required due to swab) RU Reeves E-line unit, run quad combo / RIH, C&C, POOH & LID DP Less 4,400' RU & run 3 1/2" Liner / RIH wI Liner on DP. Circulate, reciprocate & conduct safety meeting RU, test lines, pump cement, Set hanger & Packer, & check floats Circulate Well Clean. Test Packer. Circulate to Completion Brine POOH LD DP. RU E-line. RIH and Pull Bond Log. / RD E-line. & Prep to run tubing. MU & RIH 3-1/2" Completion String / Space out & Land Seals Test Tubing, Liner & annuluy/ ND BOPE NU & test tree Clean rig & pits, release rig Location: X=228,065.730 E, Y=2'189,86s1-N La!: 59° 59' 09.663" N, Long: 151 ° 29' 05.856" W 1324'FSL, 1203'FEL, Sec22, T2S, R13VV, S.M. UNOCALe . RKB = 22.5' AGL GL = 716' AMSL RKB elevation = 738.5' AMSL Happy Valley #8, Kenai Peninsula J.... "'""L. 16" 68 ppf butt welded, drilled/driven to +/-30-50' BGL .. .... 12-1/4" hole (drilled w/out diverter, AOGCC waiver requested, confirm approval) 9.0 ppg K?~I Cement to(~q'd w/350' 15.8 ppg G tail & 850' 12.8 ppg extended G lead .. '" .. .,.. 3-1/2" 9.3 ppf L-aO BTC A.B. Mod Liner from 4300' MD to aa76' MD/6600' VD ~ Liner Cemented with 12.0 Litecrete from 8876' up W+ 30% excess. v Planned TO 8,876' MD /6,600' VO Static BHT = 36.8°F + (0.0136 x TVO) Job Template #1 REVISED: 06/22/04 ORAVVN BY: SSL . . S. Kenai Gas project Happy Valley #8 7" SHOE DESIGN SUMMARY & SKETCH 9-5/a" shoe 1,120 ft BML~ (1,142ftTVD) \ I \ / " \ / \ a-1/2" Hole I \ / \ / \ / \ I \ I mdb/01decOO METHOD 2: A RT - MSL = 22.5 ft . ... WD = 0 ft with 0.447 PSI/FT Gradient . DESIGN DOWN: MW = 9 PPG Pform = 9 PPG EMW KT = 14.6 BBLS at 0 PPG FG = 0.7 PSI/FT Gas Gradient = 0.02 PSI/FT Drill Pipe = 4 INCH 9-5/a" shoe ~ " The shallowest 7 "shoe depth = 986 ft BML or 1,009 ft TVD '" Ir The deepest 8-1/2 in hole that can be drilled = 3,495 ft BML or 3,517 ft TVD a-1/2" Hole TD = 2,893 ft BML or 2,915 ft TVD METHOD 1: ~ \ / \ I \ I \ I \ / \ I \ / \ I \ I \ I . DESIGN UP: MW = 9 PPG Pform = 9 PPG EMW KT = 14.6 BBLS at 0 PPG FG = 0.7 PSI/FT Gas Gradient = 0.05 PSI/FT Drill Pipe = 4 INCH . . UNDCAL Maximum Anticipated Surface Pressure Calculation Happy Valley Well #8 Kenai Peninsula, Alaska Assumptions: 1. Based on offset drilling & well test data, the pore pressure gradient is predicted to be a ~ft gradient from surface to planned total depth at 6,600' VO BRT. 2. The MAS.P. during drilling operations will be governed by the 95/8" shoe frac gradient, and is calculated based on a full column of gas between the 9 5/8" shoe and the surface. The shoes for HV #8 will be at the same depth as the shoes in HV well #2 thus the nearby LOT data from approximately 2936' VO is useful for relatively accurate kick tolerance & MASP calculations. 3. The MAS.P. during production operations will be the estimated SIBHP minus the gas hydrostatic pressure between TO & the surface. M.A.S.P. During Production Life: Max. pore pressure at T.O. = 6,600 ' VO x G// = 2950 psi MAS.P. (tbg leak at surface) = 2950 psi - (0.096 psi/ft * 6,600 ft) = = 2316 psi M.A.S.P. While Drilling 6-1/8" hole at 8,876' MD: Max. Est. Frac pressure at 7" shoe = 2839 ft( x 0.69 psi/ft* = = 1959 psi MAS.P. during drilling = "./ 1959 psi - (.08 psi/ft x 2839 ft.) = = psi M.A.S.P. While Drilling 8-1/2" hole at 4,500' MD: Max. Est. Frac pressure at 9-5/8" shoe = 1142 ft. x 0.7 psi/ft** = = 799 psi / MAS.P. during drilling = 799 psi - (.08 psi/ft x 1142 ft.) = = 708 psi ** highest observed FG at +1-1032' VO in Happy Valley area to date WELL: Happy Valley #8 Sect. 1 Sect. 2 Sect. 3 121/4" hole MUD WT. 8 1/2" hole MUD WT. 6-1/8" hole MUD WT. SECTION CASING BOTTOM TOP 1 9-5/8" 1,200 0 TVD 1,142 0 2 7" 4,500 0 TVD 2,938 0 3 31/2" 8,876 4286 TVD 6,600 2757 Calculation & Casing Design Factors Happy Valley Well #8 Kenai Peninsula, Alaska FIELD: South Kenai Gas 9.1 PPG 9.1 PPG 9.3 PPG DATE: 18-Jun-04 DESIGN BY: Steven Lambe MASP=708 psi" MASP= 1,732 psi MASP= 2,316 psi Production Mode . ,,/ /WEIGHT TENSION MINIMUM COLLAPSE COLLAPSE TOP OF STRENGTH PRESS @ RESIST. MINIMUM DESCRIPTION WIO BF SECTION TENSION WORST CASE BOTTOM wlo TENSION WORST CASE MASP YIELD WORST CASE LENGTH WT. GRADE THREAD LBS LBS 1000 LBS SF TENSION PSI' PSI SF COLL. PSI" PSI SF BURST 1200 40 K-55 BTC 48,000 48,000 1300 27.08 502 1,950 3.88 866 3,450 3.98 4500 4590 26 L-80 BTC-mod 117,000 117,000 979 8.37 1,293 3,090 2.39 3,717 5,750 1.55 9.2 L-80 4.y/ 2,904 10,160 2.73 -" IBT-mod 42,228 42,228 207 10,530 3,717 3.63 -," .. See attached sheet for calculation of MASP . Collapse pressure is calculated; Normal Pressure Fluid Gradient for external stress (.44 psi/ft) and the casing evacuated for the internal stress (0 psilft) Note: All wellhead components are rated to 5000 psi working pressure, with the exception of the X-mas tree and tree adapter spool, which are rated to 6500 psi working pressure. e . . Happy Valley Well #8 BOP Stack Diagram Underside of Rota Table 22'6" or 270" Planned Test Pressure 3.000 psi /" / / /, .. /' ------------------t----------------- Ground Level / 25.5" AGL .., þt' t -----¡:----------------------------- " .. .., ------------~----------------------- .. ,--..----.----.------------------- Finish 16" Cut 72' below grade ~~,~~,~.S < ¡r" 9 5/8" Hanger ~ I Starter Head .1 " Top Up Ports ---.w --------------------------------- ~ Will [¡¡Jf _1_ 9 5/8" outlet I I ~ 75" .. 38" .. - - - - - - - - ----- - - - - - - - - - - - -- - - r ~~, ------.-._----------------------- 16" x 0.5" 60 ksi _ Conductor (driven) '2"t!1íckbasèDlàtè ~. . 10'0" Note: Top of Lower Master Valve (or temporary cap) must be <2' AGL to skid derrick. t 24" 17' or 204" 2' Skid Base (-.'" . 8' or 96" .. ~~~~~~~~r~~" . . 2" 3H To Shaker 3" Panic To Gas buster U '1 t'~¡ " 3 1 /8HJ " LL --- \ -. ...) '-'~(.J.~~/) (+ ) -..... 2 1/16" 'T( "-0.. \r/ 2 1/16" i'lmm{ii =f····I=<D===--=rJl Jt 2 1-'/:16" 'iJ:¡l~ 2 1~/16" ".~D~ ! .J.. ì _. ',""'.' 1+ \ ::: :;r \. tj /""',j \: .J.... <.0 ~ ....... 'a 3:1 (8" D D /',. ~ ....J.. ',/~\ '-*'>.. /. : '\ /' '\ N m ! + ' 1 .+,,; : +) : 'll/ 8'</ . '--n-¡ : ,.-.:-.,,r-:-..... . "---'-" /- " : ¡ """.... ¡ .. : .. ) [----~ ..J.. \ ,..---- !----J( ...¡... ) c----j .. I... : ,-- ¡ ,..........1\,. t .' ----.\ [...J ----- ,--- ,_~/ ---~ .../ .----- -.."... f- ....··Y..· " I' Å '",,1 L ...../ t ! 2 1¡~6" (=H 2 1/16" !VIanua! Choke t ,_..., Automatic Choke 2 1/16" Inlet Pressure Sensor 3" 3" 5,000 PSI Choke IVBnifold Kuukpik Drilling Rig 5 ~ RED =31t18" 5,000 PSI Vi\lVES AND liNES BLUE:::; 2 '1/16" 5,000 PSI VALVES UNOCAL 1,000 \ 2,000 3,000 ~ 4,000 ~ -- ..c 5,000 ...- c. ~ ~ 6,000 7,000 8,000 9,000 10,000 0 I I. U "" , u _ \.. _. _._. I . I \ 5 HA~tsV~r.\.EY #8 PLAN DAYS VERSUS DEPTH ~. 10 Time (Days) -HV#8AFE DAYS e e 15 20 _,__._.......... II .......__ I ... AS STAKED HAPPY VALLEY NO. 8 GRID N: 2,189,865.355 GRID E: 228,064.730 LATITUDE: 59°59'09.663"N LONGITUDE: 151°29'05.856"W ELEV. 716' . ",,,,,\ \" _-'~~.9.f. .'~4~ ~ t I' - .( ,?,-.., *"~.L' - 0":' .~.'~ I : * ....49lJ:i .!* ~ ...................................... " ~ , , ~ "...................................-- , ~ :. M. SCOTT MCLANE,: ð _ I ~'. : - I' ~ ". 4928-5 ..' - , 1>~()""" .......§:).::- I A . . . . . . \..t>- _ I . . 1ib¡:-tss IONÞ.\.. ....... ,\\""", PROPOSED / HAPPY VALLEY" NO.8 WELL SURFACE LOCATION !t=-~ ( - HAPPY VALLEY NO.1 PAD 00 """ > J: -.J (f) u.. ";,r N I"') . OILWELL RD. SCALE 1 inch = 300 ft. ~..;.O 450 , 600 I NOTES 1) BASIS OF COORDINATES: NGS CORS STATION "KEN 1" NAD27 ALASKA STATE PLANE ZONE 4. 2) BASIS OF ELEVATION: NGS BM W75 NAVD88. 3) SECTION LINE OFFSETS DERIVED FROM TIES TO BLM MONUMENTS AT SW CORNER SECTION 10 AND SE CORNER SECTION 12 T2S R13W SM FOUND THIS SURVEY 1203' FEL HV#8 , N SECTION 22 TOWNSHIP 2 SOUTH RANGE 13 WEST SEWARD MERIDIAN ALASKA Grid SEC 22 SEC 23 SEC 27 SEC 26 APPLICANT: UNDCAL 909 W. 9th Avenue e Anchorage, AK 99519-7685 HAPPY VALLEY NO.8 WELL SURFACE LOCATION NINILCHIK, AK P.O. 80X 468 SOLDOTNA, AK 99669 ~ Consulting c;roup ~ Testing Project: 043021 Revisions: Dwg: 043021 T~L 907.283.4218 FAX 907.283.3265 I Date: 6/8/04 FIGURE: 1 . . 8 9 17 24 26 25 _aCA DEEP CREEK UNIT HAPPY VALLEY 8 EXHIBIT A C-061591 + - 0.5 0.25 0 .. I I Miles 0.5 ... 3 Alaska State Plane Zone 4, NAD27 ì ¢:: ] 0 -400 0 N 1/ E 0 -0 () ro 0 en 400 800 1200 1600 J 2000 - ã) 2400 ~ - :5 2800 ~ C. CI) C ëij 3200 - CJ :¡: ~ 3600 ~ CI) ::J 4000 ~ I- . V 4400 4800 5200 5600 6000 6400 6800 7200 . . UNOCAL URoe Location: Kenai Peninsula, Alaska Field: South Kenai Gas Field I Installation: Happy Valley Slot: HV #8 Well: HV #8 Well bore: HV #8 Created by : Planner Oate plotted: 16-Jun-2004 Plot reference is HV #8. Ref weilpath is HV #8 VerS#1. Coordinates are in feet reference HV #8. True Vertical Depths are reference Rig Datum. I Measured Depths are reference Rig Oatum. Rig Datum: Datum #1 Rig Datum to mean sea level: 738.50 ft. Piot North is aligned to TRUE North. RKB Elevation: 738.5' KOP 3.00 Build 4/100 WELL PROFILE DATA MD ~c Azi I rvD I North 0.00 I 0.00 0.00 I 0.00 0.00 0.00 150.00 0.00 0.00 150.00 0.00 0.00 450.00 6.00 278.00 449.45 2.18 -15.54 1925.00 65.00 278.00 1597.92 116.19 -826.76 3586.27 65.00 278.00 2300.00 1325.74 -2317.73 4986 ::1:27 30.00 278.00 3231.19 467.17 -3324.06 8229.61 30.00 278.00 6040.00 692.86 -4929.94 8876.24 30.00 278.00 6600.00 737.851-5250.11 Point Tie on East End of Hold \ 14.00 \22.00 . \ D~O deg/100ft Þ \v ~ 5/8"Casing Pt. ,\ . ~,?~~gB TD:~:E~d~:~OId ~- "~.~~ Bog;, Deop ~ 60.00 ~ 55.00 DLS: 2.50 deg/100ft ", / 45.00 ~ 'v ,/1" Casing pt. t>" c 37.50\\'------- 32.50 EOD End of Build/Turn End of Build End of Hold --I I deg/100ft I V. Sect 0.00 0.00 0.00 0.00 2.00 15.69 ~.OO 834.89 0.00 2340.51 2.50 3356.72 0.00 4978.39 0.00 5301.71 HV#8 Beluga Top 1 I ~\ TD - c,,;,. ~'0/ -,- I ¡-¡--¡''- I ,-I I ,--¡ I -400 -0 400 Scale 1 cm = 200 ft 800 1200 1600 2000 2400 2800 3200 3600 4000 4400 Vertical Section (feet) -> Azimuth 278.00 with reference 0.00 N, 0.00 E from HV #8 4800 5200 5600 -=-_J ... BAKER HUGHIS INTEQ rrn~ocation: Field: Installation: Scale 1 em = 140 ft -5880 -5600 -5320 -5040 -4760 -4480 -4200 -3920 -3640 -3360 I~I /// ........../~ TO - Casing R . ~ v- " ~//..j// UNOCAL Kenai Peninsula, Alaska- South Kenai Gas Field Happy Valley Slot: Well: Well bore: East (feet\ -> -3080 -2800 -2510 -2240 -1960 I HV #al HV#~ I HV#8 [ -1680 -1400 HV#8 Beluga Top EO~ -1120 280 560 ~ 1680 r 1400 1120 Created by: Planner ~I Date plotted: 16·Jun-2004 I Plot reference is HV #8. Ref well path Is HV #8 Vers#1. Coordinates are in feet reference HV #8. True Vertical Oepths are reference Rig Oatum. Measured Oepths are reference Rig Datum. Rig Datum: Datum #1 Rig Oatum to mean sea level: 738.50 ft. Plot North is aligned to TRUE North. -840 -560 -280 o . 840 ^ I . Z 560 . - ø' 280 () - - EOB ~ 9 5/8" Casing PI. Build 4/100 0 v- KOP en (' '" -280 ¡¡; (' t 3 II -560 ~ .þ. 0 ;::I> . . ......-... UNOCAL ,HV #8 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 2 Well bore: HV #8 Wellpath: HV #8 Vers#1 Date Printed: 16-Jun-2004 L.~TEQ 0.00 0.00 0.00 0.00 O.OON O.OOE 0.00 0.00 228064.73 2189865.36 100.00 0.00 0.00 100.00 O.OON O.OOE 0.00 0.00 228064.73 2189865.36 150.00 0.00 0.00 150.00 O.OON O.OOE 0.00 0.00 228064.73 2189865.36 200.00 1.00 278.00 200.00 0.06N 0.43W 2.00 0.44 228064.30 2189865.43 300.00 3.00 278.00 299.93 0.55N 3.89W 2.00 3.93 228060.86 2189865.99 400.00 5.00 278.00 399.68 1.52N 10.80W 2.00 10.90 228053.97 2189867.11 450.00 6.00 278.00 449.45 2.18N 15.54W 2.00 15.69 228049.24 2189867.89 550.00 10.00 278.00 548.46 4.12N 29.32W 4.00 29.61 228035.51 2189870.13 650.00 14.00 278.00 646.25 7.01N 49.91W 4.00 50.40 228015.00 2189873.49 750.00 18.00 278.00 742.36 10.85N 77.19W 4.00 77.95 227987.80 2189877.93 850.00 22.00 278.00 836.31 15.61N 111.06W 4.00 112.15 227954.05 2189883.45 950.00 26.00 278.00 927.65 21.27N 151.33W 4.00 152.81 227913.92 2189890.01 1050.00 30.00 278.00 1015.92 27.80N 197.81W 4.00 199.75 227867.60 2189897.59 1150.00 34.00 278.00 1100.71 35.17N 250.27W 4.00 252.73 227815.31 2189906.14 1250.00 38.00 278.00 1181.60 43.35N 308.47W 4.00 311.50 227757.32 2189915.62 1350.00 42.00 278.00 1258.18 52.30N 372.11W 4.00 375.76 227693.90 2189925.99 1450.00 46.00 278.00 1330.11 61.96N 440.88W 4.00 445.22 227625.36 2189937.19 1550.00 50.00 278.00 1397.00 72.30N 514.46W 4.00 519.52 227552.03 2189949.18 1650.00 54.00 278.00 1458.56 83.27N 592.48W 4.00 598.30 227474.28 2189961.90 1750.00 58.00 278.00 1514.47 94.80N 674.56W 4.00 681.19 227392.48 2189975.27 1850.00 62.00 278.00 1564.45 106.85N 760.30W 4.00 767.77 227307.03 2189989.24 1925.00 65.00 278.00 1597.92 116.19N 826.76W 4.00 834.89 227240.80 2190000.07 2000.00 65.00 278.00 1629.61 125.65N 894.07W 0.00 902.86 227173.72 2190011.04 2100.00 65.00 278.00 1671.87 138.27N 983.82W 0.00 993.49 227084.28 2190025.66 2200.00 65.00 278.00 1714.14 150.88N 1073.57W 0.00 1084.12 226994.84 2190040.29 2300.00 65.00 278.00 1756.40 163.49N 1163.32W 0.00 1174.75 226905.39 2190054.91 2400.00 65.00 278.00 1798.66 176.11N 1253.07W 0.00 1265.38 226815.95 2190069.53 2500.00 65.00 278.00 1840.92 188.72N 1342.82W 0.00 1356.01 226726.51 2190084.16 2600.00 65.00 278.00 1883.18 201.33N 1432.56W 0.00 1446.64 226637.07 2190098.78 2700.00 65.00 278.00 1925.44 213.95N 1522.31W 0.00 1537.27 226547.63 2190113.41 2800.00 65.00 278.00 1967.71 226.56N 1612.06W 0.00 1627.90 226458.19 2190128.03 2900.00 65.00 278.00 2009.97 239.17N 1701.81W 0.00 1718.54 226368.75 2190142.65 3000.00 65.00 278.00 2052.23 251.79N 1791.56W 0.00 1809.17 226279.30 2190157.28 3100.00 65.00 278.00 2094.49 264.40N 1881.31W 0.00 1899.80 226189.86 2190171.90 3200.00 65.00 278.00 2136.76 277.01N 1971.06W 0.00 1990.43 226100.42 2190186.53 3300.00 65.00 278.00 2179.02 289.63N 2060.81W 0.00 2081.06 226010.98 2190201.15 3400.00 65.00 278.00 2221.28 302.24N 2150.55W 0.00 2171.69 225921.54 2190215.77 3500.00 65.00 278.00 2263.54 314.85N 2240.30W 0.00 2262.32 225832.10 2190230.40 3586.27 65.00 278.00 2300.00 325.74N 2317.73W 0.00 2340.51 225754.93 2190243.02 3686.27 62.50 278.00 2344.22 338.22N 2406.54W 2.50 2430.19 225666.43 2190257.49 3786.27 60.00 278.00 2392.32 350.42N 2493.35W 2.50 2517.85 225579.91 2190271.63 3886.27 57.50 278.00 2444.19 362.32N 2578.00W 2.50 2603.34 225495.55 2190285.42 3986.27 55.00 278.00 2499.75 373.89N 2660.34W 2.50 2686.48 225413.50 2190298.84 4086.27 52.50 278.00 2558.87 385.11N 2740.19W 2.50 2767.12 225333.92 2190311.85 4186.27 50.00 278.00 2621.46 395.96N 2817.41W 2.50 2845.10 225256.96 2190324.44 4286.27 47.50 278.00 2687.39 406.42N 2891.86W 2.50 2920.28 225182.77 2190336.57 4386.27 45.00 278.00 2756.53 416.48N 2963.39W 2.50 2992.51 225111.49 2190348.22 4486.27 42.50 278.00 2828.77 426.10N 3031.86W 2.50 3061.65 225043.25 2190359.38 4586.27 40.00 278.00 2903.94 435.28N 3097.15W 2.50 3127.58 224978.19 2190370.02 4686.27 37.50 278.00 2981.93 443.99N 3159.12W 2.50 3190.17 224916.42 2190380.12 4786.27 35.00 278.00 3062.56 452.21 N 3217.68W 2.50 3249.30 224858.07 2190389.66 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Datum #1 738.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 278.00 degrees Bottom hole distance is 5301.71 Feet on azimuth 278.00 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . 011.1".. UNOCAL ,HV#8 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 3 Wellbore: HV #8 Wellpath: HV #8 Vers#1 Date Printed: 16-Jun-2004 L~TEQ 4886.27 32.50 278.00 3145.70 459.95N 3272.69W 2.50 3304.85 224803.25 2190398.62 4986.27 30.00 278.00 3231.19 467.17N 3324.06W 2.50 3356.72 224752.05 2190406.99 5000.00 30.00 278.00 3243.08 468.12N 3330.85W 0.00 3363.59 224745.28 2190408.10 5100.00 30.00 278.00 3329.68 475.08N 3380.37W 0.00 3413.59 224695.94 2190416.17 5200.00 30.00 278.00 3416.28 482.04N 3429.88W 0.00 3463.59 224646.59 2190424.23 5300.00 30.00 278.00 3502.89 489.00N 3479.39W 0.00 3513.59 224597.25 2190432.30 5400.00 30.00 278.00 3589.49 495.95N 3528.91W 0.00 3563.59 224547.90 2190440.37 5500.00 30.00 278.00 3676.09 502.91 N 3578.42W 0.00 3613.59 224498.56 2190448.44 5600.00 30.00 278.00 3762.69 509.87N 3627.93W 0.00 3663.59 224449.22 2190456.50 5700.00 30.00 278.00 3849.30 516.83N 3677.45W 0.00 3713.59 224399.87 2190464.57 5800.00 30.00 278.00 3935.90 523.79N 3726.96W 0.00 3763.59 224350.53 2190472.64 5900.00 30.00 278.00 4022.50 530.75N 3776.47W 0.00 3813.59 224301.19 2190480.71 6000.00 30.00 278.00 4109.10 537.71N 3825.99W 0.00 3863.59 224251.84 2190488.78 6100.00 30.00 278.00 4195.71 544.67N 3875.50W 0.00 3913.59 224202.50 2190496.84 6200.00 30.00 278.00 4282.31 551.63N 3925.01W 0.00 3963.59 224153.15 2190504.91 6300.00 30.00 278.00 4368.91 558.58N 3974.53W 0.00 4013.59 224103.81 2190512.98 6400.00 30.00 278.00 4455.51 565.54N 4024.04W 0.00 4063.59 224054.47 2190521.05 6500.00 30.00 278.00 4542.12 572.50N 4073.55W 0.00 4113.59 224005.12 2190529.12 6600.00 30.00 278.00 4628.72 579.46N 4123.07W 0.00 4163.59 223955.78 2190537.18 6700.00 30.00 278.00 4715.32 586.42N 4172.58W 0.00 4213.59 223906.43 2190545.25 6800.00 30.00 278.00 4801.92 593.38N 4222.09W 0.00 4263.59 223857.09 2190553.32 6900.00 30.00 278.00 4888.53 600.34N 4271.61W 0.00 4313.59 223807.75 2190561.39 7000.00 30.00 278.00 4975.13 607.29N 4321.12W 0.00 4363.59 223758.40 2190569.46 7100.00 30.00 278.00 5061.73 614.25N 4370.63W 0.00 4413.59 223709.06 2190577.52 7200.00 30.00 278.00 5148.33 621.21N 4420.15W 0.00 4463.59 223659.71 2190585.59 7300.00 30.00 278.00 5234.94 628.17N 4469.66W 0.00 4513.59 223610.37 2190593.66 7400.00 30.00 278.00 5321.54 635.13N 4519.18W 0.00 4563.59 223561.03 2190601.73 7500.00 30.00 278.00 5408.14 642.09N 4568.69W 0.00 4613.59 223511.68 2190609.79 7600.00 30.00 278.00 5494.74 649.05N 4618.20W 0.00 4663.59 223462.34 2190617.86 7700.00 30.00 278.00 5581.35 656.01 N 4667.72W 0.00 4713.59 223413.00 2190625.93 7800.00 30.00 278.00 5667.95 662.96N 4717.23W 0.00 4763.59 223363.65 2190634.00 7900.00 30.00 278.00 5754.55 669.92N 4766.74W 0.00 4813.59 223314.31 2190642.07 8000.00 30.00 278.00 5841.15 676.88N 4816.26W 0.00 4863.59 223264.96 2190650.13 8100.00 30.00 278.00 5927.76 683.84N 4865.77W 0.00 4913.59 223215.62 2190658.20 8200.00 30.00 278.00 6014.36 690.80N 4915.28W 0.00 4963.59 223166.28 2190666.27 8229.61 30.00 278.00 6040.00 692.86N 4929.94W 0.00 4978.39 223151.67 2190668.66 8300.00 30.00 278.00 6100.96 697.76N 4964.80W 0.00 5013.59 223116.93 2190674.34 8400.00 30.00 278.00 6187.56 704.72N 5014.31W 0.00 5063.59 223067.59 2190682.41 8500.00 30.00 278.00 6274.17 711.67N 5063.82W 0.00 5113.59 223018.24 2190690.47 8600.00 30.00 278.00 6360.77 718.63N 5113.34W 0.00 5163.59 222968.90 2190698.54 8700.00 30.00 278.00 6447.37 725.59N 5162.85W 0.00 5213.59 222919.56 2190706.61 8800.00 / 30.00 278.00 6533.98 732.55N 5212.36W 0.00 5263.59 222870.21 2190714.68 8876.24 30.00 278.00 6600.00 737.86N 5250.11W 0.00 5301.71 222832.59 2190720.83 All data is in Feet unless otherwise stated Coordinates are from Slot MO's are from Rig and TVO's are from Rig ( Datum #1 738.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 278.00 degrees Bottom hole distance is 5301.71 Feet on azimuth 278.00 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . ...CII.8 UNOCAL ,HV #8 Happy Valley, South Kenai Ga$ Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 4 Wellbore: HV #8 Wellpath: HV #8 Vers#1 Date Printed: 16-Jun-2004 INTEQ 150.00 150.00 O.OON O.OOE KOP 450.00 449.45 2.18N 15.54W Build 4/100 1200.00 1141.67 39.16N 278.67W 9 5/8" Casin PI. / 1925.00 1597.92 116.19N 826.76W EOB 3586.27 2300.00 325.74N 2317.73W Be in Oro / 4500.00 2838.92 427.39N 3041.01W 7" Casin PI. 4986.27 3231.19 467.17N 3324.06W EOO 8876.24 6600.00 737.86N 5250.11W TO - CasinQ PI. / All data is in Feet unless otherwise stated Coordinates are from Slot MOos are from Rig and TVoos are from Rig ( Datum #1 738.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 278.00 degrees Bottom hole distance is 5301.71 Feet on azimuth 278.00 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated Location: Field: I Installation: INTEQ Scale 1 cm = 10 ft -380 -360 -340 -320 -300 -280 -260 -240 -220 -200 ~I ~ 2700 \ 2600 (~ ~~ " ______________~O UNOCAL Kenai Peninsula, Alaska South Kenai Gas Field Happy Valley East (feet) -> UN Slot: Well: Well bore: HV#8 HV#8 ] HV#a J I Created by: Planner Oate plotted: 16-Jun-2004 I Plot reference is HV #8. Ref wellpath is HV #8 Vers#1. Coordinates are in feet reference HV #8. True Vertical Oepths are reference Rig Datum. Measured Depths are reference Rig Datum. Rig Oatum: Datum #1 Rig Datum to mean sea level: 738.50 ft. Plot North is aligned to TRUE North. -40 -20 -180 -160 -140 -120 -100 -80 -60 ~ I I - I l~~ (~~ ~ '. 2300 1900 2500 \ 2400 2200 +., 2100 2000 1900 0 20 40 I r~\ 2200 2100 .... 2200 180p 200J~) 2400 1700 900 , 1700 800 1900· '. '..2100 \ 1500 2000 -'1-, \ 1400.( 2100 1600 , 1300 /1900 ~.12009do / //1700 ... ~O à90/13ÔÓ 1500 ~~~.Y¡ 1~OO ~Ä ~~ l 1900 f? . 120 100 80 60 40 ^ . Z 0 20 ~ ::r - ;' e 0 (þ - - -20 -40 (j) " Q) ro -60 " 3 /I -' 0 -80 ~ 270 . . UNOCAL o Location: Field: Installation: Kenai Peninsula, Alaska South Kenai Gas Field Happy Valley Slot: Well: Wellbore: HV#8 HV#8 HV#8 TRUE NORTH 350 0 10 340 200 Created by: Planner Date plotted: 16-Jun-2004 Plot reference is HV #8. Ret wellpalh is HV #8 Vers#1. Coordinates are in feet reference HV #8. True Vertical Depths are reference Rig Datum. Measured Depths are reference Rig Datum. Rig Datum: Datum #1. Rig Datum to mean sea level: 738.50 ft. Plot North is aligned 10 TRUE North. 20 290 330 30 320 40 310 50 300 60 70 280 80 2 0 90 260 250 240 .12.0~ 230 130 220 140 210 150 200 160 190 180 170 ......~ Normal Plane Travelling Cylinder - Feet All depths shown are Measured depths on Reference Well I~:ocation: Field: Installation: Kenai Peninsula, Alaska South Kenai Gas Field Happy Valley UNOCAL fNTEQ Scale 1 cm = 140 ft -5880 -5600 -5320 -5040 -4760 -4480 -4200 -3920 -3640 -3360 Slot: HV #a Well: HV#a Wellbore: HV #a East (feet) -> -3080 -~800 -2520 -2240 -1960 -1680 -1400 -1120 LI ~I I HV#21 " !~ "'-------- u Created by : Planner Date plotted: 16-Jun-2004 Plot reference Is HV #8. Ref wellpath is HV #8 VerS#1. Coordinates are in feet reference HV #8. True Vertical Depths are reference Rig Datum. Measured Depths are reference Rig Oatum. Rig Oatum: Datum #1 Rig Oatum to mean sea level: 738.50 ft. Plot Nortll is aligned to TRUE North. 1 -560 -280 0 280 . I I ~ L~ ~\ 1960 !; 5600 5200\ ~} 1680 4800 '\ 1400 -840 4000 8800 4400, 8000 7200 4000 \ , , 64&800 · 00 -'tHY~. 00 3600 \'. ~ ~, 48OQJ400 .. '!=t; . '''" 441X11D00 3200, "..J "" ~O .. ""'>::>?M~~OO .. 2800 ". ". 320000.. '<:.'- ~gfm 2400 '" ~~OO '\'" .. 24RñhO \'12 ~ 36003200 . ~/ 1120 ^ . 840 Z 0 ;::¡. ~ 560 - cr CD e - - 280 0 (f) () D> -280 iÐ () 3 L II -560 .... .þ. 0 ;::> . . a...AL. UNOCAL ,HV #8 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 1 Wellbore: HV #8 Wellpath: HV #8 Vers#1 Date Printed: 16-Jun-2004 INTEQ ~- All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Datum #1 738.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 278.00 degrees Bottom hole distance is 5301.71 Feet on azimuth 278.00 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . I Halliburton BAROID UNOCAL . Mud Program UNOCAL Happy Valley #8 Kenai Peninsula, Alaska Baroid Mud Program Halliburton Baroid Name (Printed) Signature Date Originator Dave Higbie Reviewed by John Rose Customer Approval Steve Lambe Version No: Date: 1.0 June 18, 2004 HV #8 v1.0 06í18//04 I Halliburton BAROID . UNOCAL Happy Valley Producer . Mud Program Introduction: The following mud program was prepared for a deviated well accessing the Beluga gas sands as part of the Happy Valley development program on the Kenai Peninsula, Alaska. This well will be spudded with a 6% KCI drilling fluid and drilled to the 1,200' MD range, building to 36°. It will be drilled with a 12 X" hole size and cemented. The surface casing will be drilled out with the existing mud system. The 8 W' interval will then be drilled building to 65° angle and then dropping to 39° by section TD at 4600' MD. 7" casing will be run and cemented at this depth. The 7" will be drilled out with the existing mud system and a leak off performed. A 6 1/8" hole will be directionally drilled dropping to 30° by TD at 8,876' MD. A 3 W' production liner will then be run and cemented in place. Spud the well with a 6% KCIIPHPA mud - 8.6 ppg. The mud weight will then be held in the 8.6 - 8.9 ppg mud weight range to the surface hole TD unless hole conditions dictate otherwise. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity for efficient hole cleaning. This spud mud is formulated with two mechanisms to provide waste minimization and effective well bore stabilization, ionic inhibition (KCI), and polymer encapsulation (PHPA). This same 6% KCI/PHPA mud will be maintained through the intermediate interval. This mud offers good LCM responses if losses are encountered. Special emphasis should be placed on maintaining low ECD's and surge/swab pressures to minimize the potential for lost circulation. The production interval will again use the 6% KCI/EZ Mud system. The mud weight will be held in the 9.2 ppg range or as required for hole stability. Tight filtration through the zone of interest will be maintained. Primary Drillin~ Objectives: · Zero fluid related HSE incidents · Achieve wellbore stability · Achieve good hole cleaning considering hole angle, geometry and anticipated Rap rates · Lost circulation mitigation/control · Achieve good Zonal Isolation as per plan · Achieve minimal formation damage in Beluga sands · Minimize fluids related NPT · Minimize drilling wastes Critical Fluid Issues: · Eliminating/controlling losses in the 1,700' and 4,100' areas. · Maintaining a low ECD in the production zone to reduce risk of lost returns. · Maintaining a stable wellbore through coal seams. · Reducing drilling wastes with the inhibited drilling fluid system. Well Specifics: Casing Program 12 X" hole (95/8" casing) 8 Y2" hole (7" casing) 6 1/8" hole (3.5" casing) MD 1200' 4600' 8876' TVD 1140' 2915' 6600' 1200' 3400' 4276' Footaae HV #8 v1.0 2 06/18//04 . I Halliburton BAROID Surface Hole Recommendations Mud Type: 6%KCI, EZ Mud UNOCAL . Mud Program Properties: Dez;; VlscosllY Ptastlc Vtscosltv Yield Point APt FL 0-1200' 8.68.9 60-85 6-16 35-45 <8 System Formulation: 6%KCI, EZ Mud Product Concentration Water 0.905 bbl KCI 20 ppb (30K chlorides) KOH 0.2 ppb (9 pH) Barazan 0 1.5 -2 ppb (as required 35-45 YP) PAC L 1 ppb EZ Mud DP 0.75 ppb Aldacide G 0.1 ppb Baracor 700 1 ppb Barascav D 0.5 ppb (add as the well spuds) m1 8.5-9.0 Special Mixing Instructions: . Mix in order as listed . Add polymers slowly to minimize fisheyes. Concerns and Continqencies Surface Interval - ( 0 - 1.200' MD ) Mud Type: 1. Mud weight: 2. Rheology: 3. Filtrate control: 6 % KCI/PHPA Maintain the 8.6 - 8.9 ppg density or as directed. Maintain a YP between 35 - 45 or as needed to achieve adequate hole cleaning.. Maintain filtrate control in the <8 range with PAC/Dextrid. Additions of BDF-263 may be required to control screen blinding/bit balling. Seepage losses in this interval can be controlled with additions of 3-5 ppb BAROFIBRE but are unlikely to occur. Operations Summary: This section will drill a 12 X" hole. Build the 6% KCI fluid in the proper order of addition. Always maintain a reduced pit volume during spud as losses are not expected in this section. Be prepared for sloughing gravels in the upper interval; increasing the system rheology with BARAZAN-D/N-Vis will assist in bringing this material out of the well. as will pumping dedicated high-viscosity sweeps. It is recommended that the pump rate be increased to the maximum practical rate while the hole is unloading gravel. Sweep Formulation: 30 barrels mud (500' annular coverage), add ca. 1.0 ppb BARAZAN 0 to achieve a tauO > 25. When penetrating high-clay content sections additions of BDF-263 ester are recommended to reduce the incidence of bit balling and shaker blinding. This well more angle than the other Happy Valley wells to date. Modeling shows that it will be more difficult to clean. Maintain a minimum 35 YP at all times. Be prepared to increase the YP if hole cleaning becomes an issue. Run DFG (Drilling Fluid Graphics) to confirm hole cleaning efficiency based on current rheology, flow rates and cuttings size. HV #8 v1.0 3 06/18//04 . . I Halliburton BAROID UNOCAL Mud Program I At TD, a carbide or Wall nut "flag" (20 bbl pill with 15 ppb of Wall nut F) should be pumped to gauge hole washout and to calculate the required cement volume. The cement will then be pumped and drilling mud will be used to bump the plug. Pretreat this chase mud with 1 ppb Bicarb and 0.5 ppb citric acid. Hazards I Concerns - Surface Interval: · Preventing lost circulation through ECD management. · Optimize solids control equipment to maintain density, sand content, and reduce the waste stream. · Maintain YP between 35 - 45 to optimize hole cleaning and to control ECD. · Pump high viscosity sweeps to enhance hole-cleaning efforts. Monitor sweep effectiveness. · Successfully cement casing. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM-¡. 550 600 650 80 rpm 130 145 161 100 rpm 140 189 213 Baroid's recommended flowrate for this interval is 600 gpm to maximize hole cleaning at these penetration rates. RPM's of 100 are recommended as the hole cleaning efficiency drops severely below this level. Hole cleaning is made more difficult in this increased hole size. Intermediate Hole Recommendations Mud Type: 6%KCI, EZ Mud Properties: Density Viscosity 1,200-1500' 8.7-/(?J 40-53 1500 - 4600' 8.8 iy 40-50 System Formulation: 6%KCI, EZ Mud Product Concentration Water 0.905 bbl KCI 19.8 ppb (30K chlorides) KOH 0.2 ppb (9 pH) Barazan 0 1.25 ppb (as required 35 YP) Dextrid 1-2 ppb EZ Mud DP 0.75 ppb Aldacide G 0.1 ppb Baracor 700 1 ppb Barascav 0 0.5 ppb (maintain per dilution rate) Plastic Viscosity 6 - 15 6 - 15 Yield Point 15 - 25 15 - 25 API FL <8 <8 Iili 8.5-9.0 8.5-9.0 Special Mixing Instructions: . Mix in order as listed . Add polymers slowly to minimize fisheyes. Concerns and Contingencies HV #8 v1.0 4 06í18//04 I Halliburton BAROID . UNOCAL . Mud Program Intermediate Interval- (1200·4600' MD) Mud Type: 6 % KCI/PHPA 1. Mud weight: 2. Rheology: 3. Filtrate control: Maintain the 8.8 - 8.9 ppg density or as directed. Maintain a YP between 13-20 or as needed to achieve adequate hole cleaning. Filtrate control in the <8 range is required for this interval. Maintain additions of Dextrid and/or Pac L to reduce filtrate to this range. Additions of BDF-263 will be required to control screen blinding/BHA balling. Losses in this interval can be controlled with additions of 1-2 ppb BAROFIBRE and 1-2 ppb of Baracarb 50 or by dedicated LCM pills; see appendix for LCM decision tree. Operations Summary: Drill out the cement/casing with the existing mud system. Bicarb or soda ash and citric acid should be used to pretreat for any negative effects of the cement. BARAZAN-D/N-Vis should be used to maintain rheological parameters. Maintain the mud as clean as possible while drilling. Should sweeps be required a BAROLlFT sweep is recommended (check with the G&I plant to ensure compatability). This sweep will help clean the hole with no negative impacts on system mud weiqht or rheoloQY. Daily additions of X-Cide 207 or Aldacide G MUST be made to control bacterial action. Sweep Formulation: 25 bbl of mud with 0.25 ppb of Barolift added. Shear thouroughly prior to pumping. Dextrid and/or PAC L should be used for filtrate control. While drilling, monitor the torque and drag to determine if liquid lubricant is required. When penetrating high-clay content sections additions of BDF- 263 ester are recommended to reduce the incidence of bit balling and shaker blinding. Maintain the pH in the 8.5 - 9.0 range with caustic soda or KOH. By -1500' TVD the system rheology may be relaxed as hole conditions allow. This will also lower the ECD for the loss zone found -1,700' TVD. However, be prepared to increase the YP if hole cleaning becomes an issue. Run DFG (Drilling Fluid Graphics) to confirm hole cleaning efficiency based on current rheology, flow rates, angle and cuttings size. At 2,000' begin stringing in 1-2 ppb of BAROFIBRE and 1-2 ppb of Baracarb 50 (10-15 sx/hr each). This material will help seal any mini fractures or small vugs as they are drilled. Premixing -60 sx of Baracarb 50 and Barofibre in pill pit/auxiallary tank and then stringing this mixture in has worked well on HV 3, 4,5 and 6. This treatment should be maintained until 2450'. Also, ensure that the mud weight is maintained as low as possible through this area. Stress slow pipe movement to the drillers to reduce surge/swab on this fragile zone. Stage pumps on slowly after connections and begin rotation prior to pumping (this will break the gels and reduce the pressure required to break the gels). Should all these efforts fail and losses occur, please refer to the LCM decision tree appendix. If the losses are still high (above 30 bbl/hr static) after attempting an LCM pill, STOP running the fluid as a KCI/EZ Mud system. All additions of these products should be halted and allow the system to break back to an LSND system. Run the fluid loss and rheology as with the inhibited system. When running the LSND, stop addtions of Baracor and Barascav D when the chlorides drop below 6,000 ppm's. If any trips are required, consider spotting a 20 bbl, 20 ppb pill across the loss zone. The pill should consist of base mud with 10 ppb Baracarb 50 and 10 ppb STEELSEAL added. This pill would reduce the effects of tripping back in and allow time for the LCM to "soak" into the zone. STEELSEAL and Baracarb will not dehydrate the mud which will allow for lower ECD's on the first bottoms up after TIH. Losses were incurred at - 4,100' TVD on HV #5. All pit monitoring devices should be watched closely as this zone is cut. HV #8 vl.O 5 06/18//04 . . I Halliburton BAROID UNOCAL Mud Program Maximum Acceptable ROP in fph at Specified GPM and RPM GPM~ 500 550 590 80 rpm 72 80 83 100 rpm 98 120 134 120 rpm 125 160 172 Baroid recommends a flowrate in the 550-590 gpm range to maximize hole cleaning efficiencies at these high penetration rates. A step chanqe occurs at 525 gpm at all rotational speeds. There is a larQe drop in efficiency if the rpm drops below 100. 120 rpm's, if acheivable, allow the best penetration rates while keeping the hole clean. Reduce system YP with Therma Thin as required for running casing as allowed (do not jeopardize hole conditions). Run casing carefully to minimize surge and swab pressures. Reduce the system rheology once the casing is landed to a YP < 20 ( check with the cementers to see what yp value they have targeted). Consider spotting the above Steelseal LCM pill prior to running the 7" casing if losses have been seen in this interval. The plug will again be bumped with mud on the interval. Pretreat this chase mud with 1 ppb Bicarb and 0.5 ppb citric acid. Hazards I Concerns - Intermediate Interval: · Preventing lost circulation in the 1,700' and 4,100' TVD ranges. · Optimize solids control equipment to maintain density and sand content. · Maintain YP between 15-25 to optimize hole cleaning and to control ECD. · Pump high viscosity or Barolift sweeps to enhance hole-cleaning efforts. Monitor sweep effectiveness. · Successfully land and cement casing. Production Hole Recommendations Mud Type: 6%KCI, EZ Mud Properties: De~ Viscosity Plastic Viscosity Yield Point API FL 4600 - 8876' 9.0 9. 40-50 6 - 15 15 - 25 <5 c¿/ System Formulation: 6%KCI, EZ Mud Product Concentration Water 0.905 bbl KCI 19.8 ppb (30K chlorides) KOH 0.2 ppb (9 pH) Sarazan D 1.25 ppb (as required 35 YP) Dextrid 1-2 ppb PAC L 1 ppb EZ Mud DP 0.75 ppb Aldacide G 0.1 ppb Saracor 700 1 ppb Sarascav D 0.5 ppb (maintain per dilution rate) e.!:! 8.5-9.0 Special Mixing Instructions: . Mix in order as listed . Add polymers slowly to minimize fisheyes. HV #8 .v1.0 6 06/18//04 I Halliburton BAROID . UNOCAL - Mud Program Concerns and ContinQencies Production Interval (6 1/8" hole, 3.5" casinQ ): 0 to 8876' MD Mud Type: 1. Mud weight: 9.2 ppg, 6% KCI/EZ Mud System. 2. Rheology: Maintain the density at 9.2 ppg or as directed; use solids control and whole mud dilution. Increase density as required for hole stability/coal sloughing. Maximize solids control usage. Maintain a YP between 9 and 18. Pump high viscosity or Barolift sweeps throughout the interval as needed, particularly prior to POH for casing. Optimized mud rheology and flow rate will be the primary mechanisms for achieving hole cleaning in this deviated wellbore. Maximize pipe rotation (ideally ~ 80 RPM). 3. Other issues: The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses and differential sticking. Please see the Coal Drilling recommendations attachment. Operations Summary: Prior to drilling out, centrifuge the mud system back to approximately a 9.0 ppg. Additions of -7 ppb of Baracarb 50 and -7 ppb of Baracarb 25 should be made to arrive at a final mud weight of 9.2 ppg. Drill out the cement/casing with this mud system. Bicarb or soda ash and citric acid should be used to pretreat for any negative effects of the cement. BARAZAN-D/N-Vis should be used to maintain rheological parameters. Maintain the mud as clean as possible while drilling. Should sweeps be required a BAROLlFT sweep is recommended (check with the G&I plant to ensure compatability). This sweep will help clean the hole with no neqative impacts on system mud weight or rheology. Daily additions of X-Cide 207 or Aldacide G MUST be made to control bacterial action. Sweep Formulation: 25 bbl of mud with 0.25 ppb of Barolift added. Shear thouroughly prior to pumping. Dextrid and/or PAC L should be used for filtrate control. While drilling, monitor the torque and drag to determine if liquid lubricant is required. When penetrating high-clay content sections additions of BDF- 263 ester are recommended to reduce the incidence of bit balling and shaker blinding. Maintain the pH in the 8.5 - 9.0 range with caustic soda or KOH. Daily additions of Aldacide G or X-Cide 207 must be maintained. The system rheology may be relaxed as hole conditions allow. This will help lower the ECD. However, be prepared to increase the YP if hole cleaning becomes an issue. Run DFG (Drilling Fluid Graphics) to confirm hole cleaning efficiency based on current rheology, flow rates, angle and cuttings size. Stress slow pipe movement to the drillers to reduce surge/swab. Stage pumps on slowly after connections and begin rotation prior to pumping (this will break the gels and reduce the pressure required to break the gels). If the losses occur and remain above 30 bbl/hr static after attempting an LCM pill, STOP running the fluid as a KCIIEZ Mud system. All additions of these products should be halted and allow the system to break back to an LSND system. Run the fluid loss and rheology as with the inhibited system. When running the LSND, stop addtions of Baracor and Barascav 0 when the chlorides drop below 6,000 ppm's. If any trips are required, consider spotting a 20 bbl, 20 ppb pill across the loss zone. The pill should consist of base mud with 10 ppb Baracarb 50 and 10 ppb STEELSEAL added. This pill would reduce the effects of tripping back in and allow time for the LCM to "soak" into the zone. STEELSEAL and Baracarb will not dehydrate the mud which will allow for lower ECD's on the first bottoms up after TIH. HV #8 vl.O 7 06/18//04 I Halliburton BAROID . UNOCAL -- Mud Program Suggested Drilling Parameters Pump rate and drill string rotation should be optimized through the real-time use of the DFG software for the actual Rap while drilling. The table below highlights the maximum Rap recommendations above which hole cleaning will become an issue. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM~ 250 300 350 60 rpm 137 158 175 80 rpm 175 205 240 Rap rates above these levels or with no (sliding) or low rpm will require an increased frequency of the following remedial hole cleaning practices: · wiper trips · back reaming · extended periods of circulation (with maximum pipe rpm, targeting ~ 100 rpm) · hole cleaning sweeps (change flow regime of base mud by using fibers, density or rheology for carrying capacity) · connection practices - employing extended gpm, rpm and back reaming during the connection Sweeps Two alternate types of hole cleaning sweeps can be used: . Increase the sweep density with SWEEPWATE to 2 ppg over system density. The SWEEPWATE will increase the sweep carrying capacity yet will be removed at the shakers; this will result in no density increase from running weighted sweeps. . To reduce the density/viscosity build up in the system, sweeps can be built by adding 0.25 ppb BAROLlFT in place of the clay. The fibrous BAROLlFT will be removed at the shakers. Note: Properly size all sweeps for 300 - 400 ft of annular coverage Supplement the hole cleaning of the drilling fluid as dictated by hole cleaning indications. Monitor all sweeps pumped and report on their effectiveness. Maximize drill pipe rotation at high rates on a frequent basis (particularly during connections) to assist in disturbing any potential cuttings accumulations down- hole. The objective of the sweep is to change the flow characteristics I carrying capacity that is inherent with the mud system. Select sweep type accordingly. Coal Drilling The following lessons were learned from extensive experience drilling coal seams in Cook Inlet. The hole stability risks when drilling coal seams are often high, and the fluid design and drilling operations have been optimized to combine reduced risk with reduced costs. The need for good planning and drilling practices is also emphasized as a key component for success. · Keep the drill pipe in tension to prevent a whipping effect which can disturb coal sections. · Use asphalt-type additives to further stabilize coal seams. · Increase fluid density as required to control the running coal. · Emphasize good hole cleaning through hydraulics, ROP and system rheology. In the event that sloughing coal is encountered, consider spotting a 30 ppb BAROTROL pill across the coal seam. The pill can be safely "squeezed" into the coal by closing the bag and applying pressure not to exceed the total annular pressure loss ( based on ECD values using the DFG software). System density increases can also be employed in increments of 0.5 ppg. HV #8 vl.O 8 06í18//04 UNOCAL . Mud Program I Halliburton BAROID . Solids Control Equipment Maximize the use of all solids control equipment to ensure that the solids content of the system is kept to a minimum during this interval. 1. Run the shale shakers with as fine a screen size as possible. · Size shakers screens with coarse mesh initially · Adjust screen size as solids loading, mud rheology and flowrates allow · Inspect the shakers frequently, taking time to repair / replace damaged screens 2. Maximize the use of the centrifuge, keeping the fluid as clean as possible. Running Casing I Cementing Preparation Monitor hole fill/returns closely while running the liner to insure losses haven't occurred. Refer to Baroid's DFG+ program if calculated surge/swab values are needed. Condition the mud prior to the cement job. Production Hole - Hazards I Concerns: · Optimize solids control equipment to minimize colloidal solids build up and dilution requirements. · Maintain flow profile based on PV, YP and tauo flow parameters. · Pump sweeps as required to enhance hole-cleaning efforts. Monitor the effectiveness of any sweeps pumped. No sweeps have been needed in this hole section to date. · Follow the hole cleaning guidelines to assist in drilling parameter selection. Use connections for high RPM and pump rate support when these parameters are limited during drilling operations. · Follow the coal drilling guidelines. Estimated Fluid Costs: 12 W' Surface 8 W' Intennediate 6 1/8" Production Total 16,000 16,000 26,000 $58,000 21,600 21,000 38,000 $80,000 35,000 52,000 74,000 $161,000 HV #8 v1.0 9 06/18//04 I Halliburton BAROID Losses + Seepage 5·10 bbl/hr Static + I Treat Active System I with 5 sx/hr Barofibre Yes ~ I Drill Ahead I No ¡lnc.l1:d:le TTt:atrnE:nt to I 5 sx/hr Barofibre 5 s,xIhr Sfar.arb 50 No , Yes ~ I Drill Ahead I 40 ppb LCM/Mud Pill: 10 ppb Baroseal F 10 ppb Baroseal M 10 ppb Barofibre 10 ppb Wallnut M Yes . I Drill Ahead I No , Proceed to 'Partial Losses' Pill HV #8 v1.0 e UNOCAL - Mud Program UNOCAL Lost Circulation Decision Tree fllnhibited Mud Systems + Partial 15-60 bbllhr Static + IT reat Active System I with 10 sx/hr Barofibre Yes . I Drill Ahead I No . 70 ppb LCM/Mud Pill: 20 ppb Baroseal F 20 ppb Baroseal M 20 ppb Barofibre 10 ppb Wallnut M Yes . I Drill Ahead I No , Contact Drilling Engineer or Engineer on call to determine if additional LCM treatments are to be made or to proceed to Gunk Squeeze pill Severe 60·200 bbllhr Static . 160-150 bbl/hr Static I . I Drill Across Fault I I + 100 ppb LCM/Mud Pill: 20 ppb Baroseal F 20 ppb Baroseal M 30 ppb Barofibre 20 ppb Wallnut M 10 ppb Wallnut F + I Contact Drilling Engineer or I Engineer "On Call" . Pump Gunk Squeeze pill 10 + . 1150-200 bbl/hr Static I . Drill Across Fault I + I Contact Drilling Engineer I or Engineer on call y Pump Gunk Squeeze pill (Volume to be determined based upon losses) + Total > 200 bbl/hr Static + Drill Across Fault . Pump Gunk Squeeze pill to allow POH (Volume to be determined based upon losses + Contact Drilling Engineer or Engineer on call + I POH, PU dumb iron I BHA + Consider cement I plugback contingency í \ Notes: 1) Drill across fault or loss zone 1.5 - 2.0 times the length of the throw before spotting Gunk Squeeze. 2) PBl sub should be run in BHA to spot pills if 'Partial loss' cases or above are anticipated prior to drilling to allow the spotting of lCM pills. 3) lCM pill volume = 300'-600' column based upon actual hole diameter 4)PRIOR TO ANY lCM Pill, APPROPRIATE DISCUSSIONS AT THE RIG MUST BE MADE TO MINIMIZE THE POTENTIAL FOR PLUGGING THE DRIll STRING. ~ ) 06/181104 Halliburton BAROID Losses · Seepage 5·20 bbl/hr Static · Treat Active System with 5 sx/hr Baracarb 50/150 Yes ~ I Drill Ahead I No · Increase Treatment to 10 sx/hr Baracarb 501 150 · No , Yes + I Drill Ahead I 20 ppb LCM/Mud Pill: 20 bbls base mud 10 ppb Baracarb 50 10 ppb Baracarb 150 Yes + I Drill Ahead I No · Proceed to 'Partial Losses' Pill HV #8 vl.O . UNOCAL . Mud Program UNOCAL Lost Circulation Decision Tree fl Payzone Mud Systems t Partial 20·60 bbl/hr Static . Treat Active System with 10 sx/hr Baracarb 150 Yes . I Drill Ahead I No , 50 ppb LCM/Mud Pill: 20 bbls Base mud 10 ppb Baracarb 25 20 ppb Baracarb 50 20 ppb Baracarb 150 Yes . I Drill Ahead I No . Contact the Engineer on call to determine if additional LCM treatments are to be made or to proceed to reverse gunk squeeze pill t Severe 60·200 bbllhr Static · . I 60-150 bbl/hr Static I 1150-200 bbllhr Static I · . I Drill Across Fault I I Drill Across Fault I t t 100 ppb LCMlMud Pill: 20 ppb Baroseal f 20 ppb Baracarb 50 30 ppb Barofibre 20 ppb SteelSeal 10 ppb Baracarb 150 · I Contact Drilling Engineer or I Engineer "On Call" Pump reverse gunk squeeze pill to allow POH (Volume to be determined based upon losses) ~ I Contact Drilling Engineer I or Engineer on call . Pump reverse gunk squeeze pill (Volume to be determined based upon losses ( t Total > 200 bbl/hr Static + Drill Across Fault . Pump reverse gunk squeeze pill to allow POH (Volume to be determined based upon losses . Contact Drilling Engineer or Engineer on call l . Plan to pump a second 50-80 bbl reverse gunk squeeze pill if massive losses continue. Consider cement I plug back contingency '\ 1 )UNOCAL must approve any steps past PARTIAL losses. 2) Drill across fault or loss zone 1.5 - 2.0 times the length of the throw before spotting reverse gunk squeeze pills. 3) PBL sub should be run in BHA to spot pills if 'Partial Loss' cases or above are anticipated prior to drilling to allow the spotting of LCM pills. 4) LCM pill volume = 300'·600' column based upon actual hole diameter. 5)PRIOR TO ANY LCM PILL, APPROPRIATE DISCUSSIONS AT THE RIG MUST BE MADE TO MINIMIZE THE POTENTIAL FOR PLUGGING THE DRILL STRING. \ 11 ) 06/18//04 I Halliburton BAROID . UNOCAL . Mud Program Gunks (WBM) Description The basic system forms a fairly soft plug. The addition of cement produces a firmer set which can withstand differential pressure and has a longer lifetime - this is known as DOB2C. Essentially the gunk treatment involves mixing bentonite, bentonite/polymer, or bentonite/cement powder blends into an oil such as diesel. This mixture is pumped down the drill pipe whilst water based mud is pumped down the annulus. When the two streams meet, a thick gunk (gel) is formed as the bentonite or other additives hydrate. This is then squeezed into the formation. The hardness of the gunk depends on the relative pump rates and the concentration of the pill (as well as the pill type). Typically the mud and pill would be pumped at similar rates and the pill would contain around 200-400ppb bentonite. In some situations environmental regulations may preclude the use of diesel oil. Low toxicity oils such as synthetic oils may be used in place of diesel but should be tested in the laboratory first. A cement unit is used for displacing the gunk squeeze. The pumping unit displaces the mixture down the drill string and the mud pump pumps fluid down the annulus. The slurry reacts with water so that precautions to keep water from prematurely contacting the slurry are needed. An oil spacer is pumped in front of and behind the pill. Benefits: · Temperature is not very important · Soft set avoids sidetracking problems (easy to wash/drill out) · Slurry will pass through most BHAs · Procedures are well established · Suited to large fractures/voids Limitations: · Placement - need to generate gunk in the right place · Flow rate and mix is important to achieve suitable consistency · Suitable experience required · Avoid premature mud contamination · Possible environmental restrictions dealing with oily returns · Effect can be short-lived due to softness of the plug (simple gunk) · May not work with high salt muds (>50,000 mg/I chlorides) HV #8 v1.0 12 06/18//04 I Halliburton BAROID . UNOCAL . Mud Program Gel Gunk Squeeze Procedure Formulation - 1 barrel . 0.7 bbl Diesel . 400 Ibs bentonite (density is approx. 10 Ib/gal) Mixing Procedure Mix in a cementing batch tank, not in the pits o Ensure the cement unit, batch tank and all associated pipework is completely drained and then flushed through with diesel o Add the bentonite to the diesel. Preferably add the bentonite through a mixing jet (not directly into the tank) to avoid lumps. o If the mixture becomes too thick to add the required quantity of bentonite, stop mixing and use the slurry as it is. o Test the gunk by mixing a sample of it 50/50 with the mud. Check the quality· it should be a consistency similar to chewing gum within 30 seconds. NOTE: If a highly inhibitive Mud does not allow the Gunk Squeeze to hydrate, then Freshwater, not the Mud, should be used to pump down the annulus AND to displace the Diesel Spacer· Gunk Squeeze-Diesel Spacer combination in the drill pipe. See below procedure. Suggested Procedure 1. Place the bit about 50-60' above the loss zone. 2. Line up mud pumps to pump simultaneously down the drillpipe and annulus. 3. Line up cement unit to pump down the drillpipe. 4. With the cement unit pump 10 bbls diesel followed by 40+/- bbls gunk and a further 10 bbls diesel, down the drillpipe. 5. Displace with the mud pump until diesel at the bit. Close annular. 6. Pump at 5 bpm down the drillpipe and 10 bpm down the annulus (use freshwater, if mud is too inhibitive) simultaneously until half of the gunk is out of the bit. 7. Pump at 5 bpm simultaneously down both the drillpipe and annulus until the gunk has been over displaced from the drillpipe by 5 bbls. 8. Squeeze gunk into the loss zone. Leave at least 5 bbls gunk inside the wellbore to prevent over- displacement. Try to establish a shut-in pressure at the end. 9. If successful, leave the gunk to firm up for 30 minutes prior to washing out. Comments The gunk pill is inert until it is mixed with water or water based mud. IT MUST ONLY CONTACT WATER BASED FLUIDS AS IT EXITS THE BIT. The purpose of initially pumping down the annulus at twice the rate down the pipe is to initially produce a slower reacting product that can penetrate the formation more easily. The last part of the gunk is mixed 50/50 and plugs the loss zone quickly. These flow rates are designed to get the gunk to the loss zone quickly after the gunk has been mixed with the mud (or fresh water). The progress of the job should be determined and monitored by the volume of displacement mud pumped down the drillpipe. HV #8 v1.0 13 06/18//04 . I Halliburton BAROID Happy Valley #7 - Surface UNOCAL . Mud Program I I I 5 10 15 20 250 50 1000 7 hr rllr liml> I 9.40 The hole cleaning model indicates that 590 gpm and a 100 rpm rotary will give good hole cleaning support at p rates of 175'/hr. If these flowrates or RPM's cannot be maintained, remedial action such as high viscosity sweeps and circulating on connections may be required. HV #8 vl.O 14 06/18//04 . I Halliburton BAROID UNOCAL . Mud Program Intermediate hole modeling Rotation must be optimized in this size hole and at this angle. Rotation less than 100 rpm's indicates that there will be cuttings accumulation. At flowrates of 550 gpm and 100 rpm (a rate the Kuukpik #5 rig can achieve) an average Rap of 120 ft/hr can be achieved. For higher Raps, an increase in rotational speed from 100 rpm to 120 rpm is recommended - a gain of 40 ft/hr is had with a 550 gpm flow rate. A strict hole cleaning sweep strategy will be required for Raps above 125 ft/hr if rotation is 100 rpm or less. HV #8 v1.0 15 06/18//04 . I Halliburton BAROID . Mud Program UNOCAL Production hole modeling I I 5 10 15 20 250 1 ? hI The recommended flowrate is 300 gpm with rpm's of 80. If the rpm is only 60, 300 gpm will still clean the hole but a little less efficiently. If the pump rate is increased to 350 gpm hole cleaning improves but the ECD jumps up to 10.75 ppg. HV #8 v1.0 16 06/18//04 · Unocal Alaska . Union Oil Company of California 909 West 9th Avenue, P.O. Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 Fax (907) 263-7698 ¡i;g UNOCALe RE. r=f'/E C"='i\· D JUN 2 4 2004 Kevin A. Tabler, Manager Land/Government Affairs Alaska Oil & Commission June 11, 2004 Mr. Bob Crandall Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 APPLICATION FOR SPACING EXCEPTION Happy Valley #8 well Unocal Lease C-061589, C-061590 ADL # 384380 Dear Mr. Crandall: Union Oil Company of California (Unocal) hereby submits this Application for Spacing Exception to drill the referenced "Happy Valley #8" well in the Deep Creek Unit. Our anticipated spud date is June, 2004. In accordance with 20 AAC 25.005 (a), a Permit to Drill and associated filing fees are filed herewith. The Happy Valley #8 well bottomhole location is situated in governmental Section 21, Township 2S - Range 13W S.M. with a targeted Beluga formation withdrawal point in Section 22 Township 2S-Range 13W requiring a spacing exception in accordance with 20 AAC 25.055 (a)(2), and if the results of the Happy Valley #8 well are successful, may be within 1,500' of a property line with a different landowner. This regulation provides in pertinent part, "a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line." This well location is structurally high on the formation and is a crestal withdrawal based on seismic, dip meter and subsurface data available to Unocal. Additionally, the correlative rights of all affected owners, landowners and operators will be protected by exception approval. . . At the date of this mailing, in accordance with 20 AAC 25.055 (d)(l), notice of our intent to drill has been sent by certified mail to all owners, landowners, and operators of all outlying properties within 3,000 feet of the Happy Valley #8 well. A copy of this application (landowner notice) along with a certified mailing receipt has been attached to this application. Additionally, the owner and operator (Unocal) and the landowner (Cook Inlet Region, Inc.) are within 3000' of lands owned by DNR. Pursuant to 20 AAC 25.055 (d)(2), enclosed is a plat, identified as Exhibit "A", which shows the location of the well for which the exception is sought and all adjoining properties. Also enclosed, Exhibit "A-I" identifies the owners, landowners and operators associated with each tract. Pursuant to 20 AAC 25.055 (d)(3), an affidavit is enclosed stating the undersigned is acquainted with the facts and verifying that all facts are true. It is requested that the Commission approve an exception to the statewide spacing regulation for the drilling of the proposed Happy Valley #8 well. If you require additional information regarding the Happy Valley #8 drill site, please contact Mr. Steven Lambe, drilling engineer at 263-7637, or you may contact the undersigned at 907-263 - 7 600. Jè!~ Enclosures cc: CIRI DNR . . VERIFICA TION OF APPLICATION FOR SPACING EXCEPTION COOK INLET, ALASKA ADL-384380 C-061590 C-061589 Happy Valley #8 well I, KEVIN A. TABLER, Manager, Land and Government Affairs, Union Oil Company of California, do hereby verify the following: I am acquainted with the application submitted for the drilling of the Happy Valley #8 well in the Deep Creek Unit. I have reviewed the application submitted for the exception to 20 AAC 25.055 (a)(2) and all facts therein are true. I have reviewed the plat attached to said application, and it correctly portrays pertinent and required data. DATED at Anchorage, Alaska this 11 th day of June, 2004. ~ LJ c1,j~,^- evin A. Tabler Mgr., Land & Govt. Affairs STATE OF ALASKA ) ) ss ) THIRD JUDICIAL DISTRICT SUBSCRIBED TO AND SWORN before me this 11 th day of June, 2004. ~\\\\\IIIIIIJ"III~ # y. .~:...f!. 7'''1 ~ ~ d'."-;"'({IIsSIOr¡ i:":'t'~ ~ §§.;:j /vO'· --¡q¡,".f-~ §j3...,.:i' " ... ~ = iNOTARY ¡ = ~ \. pUBLICi *~ ~. .... ~ ..('..'ò..,:\"f;"~ ~ cJ>"'" 6b 14 '2-"-.' c...'"' ~ ~ / 4i:··.-....···~"f:.J ~ ~ £ OF þ\ ~ WIII/I/I/III \\\\\\\~ - ~ ~LIC IN AND FOR THE STATE OF ALASKA My Commission expires: :; - / L/ - 0 ¡" LEASE ADL-384380 (Section. 22 portion) T2S-R13W C-061590 (Sections 22, 23) T2S-R13W C-061589 (Section 21) T2S-R13W . EXHIBIT "A-I" LANDOWNER OWNER DNR Unocal Division of Oil and Gas 550 West ih Avenue, Suite 800 Anchorage, Alaska 99501-3560 Attn: Carol Lee Cook Inlet Region, Inc. 2525 C Street, Suite 500 Anchorage, Ak 99509 Attn: Kirk McGee Unocal Cook Inlet Region, Inc. 2525 C Street, Suite 500 Anchorage, Ak 99509 Attn: Kirk McGee Unocal . OPERATOR Unocal Unocal Unocal . . 8 9 C-061587 11 12 17 23 24 29 /) HAPPY VALLEY 6 (BHL) =/ 28 27 26 25 C-061590 32 33 34 U \'f: 'f f;. ìf t~ 1» UNOCAL6> DEEP CREEK UNIT HAPPY VALLEY 8 EXHIBIT A ADL384380 + - C-061591 3 0.5 0.25 0 0.5 I I Miles Alaska State Plane Zone 4, NAD27 C;;2eckPe of mail or service: Affix Stamp Here . . _ (If issued as a _ Certified I) Recorded Delivery (International) certificate of mailing, o COD U ~istered or for additional lJ Delivery Confirmation C1"Return Receipt for Merchandise copies of this bill) o Express Mail n Signature Confirmation Postmark and o Insured _.__._..___ __._.____ Date 'of Receipt Addressee Name, Street. and PO Address Postage Fee Handling Cha~~_ 2~ Name and Address of Sender . UDCCŒ < Une Article Number -.--- --....-'---..-.-- 1 7rbl O~C(j)V:)S~/MfEil_____n_~=~=_------(jf) 2 ~--'-------~._----~-'- <8 McGee :)ook lmet Region, Inc. 2525 G. street, Suite 500 Anchorage, AK 9950~ --~- 3 4 ---.',.._- 5 ----.--- 6 ~ú r¿~_ ._~._._. 7 7rJ:i fJ~X'JcyjßPiDq(¿ßJ u'" ",_..,....1 Lee er tYRO. vatUl . snd W\9f\ag .. pet"fO\ß~ ~. 0\1& Ga5 ~;NR otV\S10n of ... St""..aoo u .. '.. 7tn^vcnue. .~. 550,'14... K 99501 ¡~nchorage, A 8 --- \ \ \ \ 11 -1 1~ 1~ r-"I _0- \ ...n ¡ 1·0- ...n ì 11 co co I TiLrJ I \ u '. LrJ C C c i-c "PI ru fT1 c r"f C C ['- 9 10 U.S. Postal . -, - CERTIFIED MAIL RECEIPT (Domestic Mail Only; No Insurance Coverage Provided) ...0 -.---.- co co LrJ r~ ~.~" IF.': . I" %%:'1/;1 '1i W,rt}§ \ ~ " " ., '.~y· C I of receiving employee) The full declaration of va t1J reconstruction of nonnef fT1 addilional fimil8tions for C on Express Mall merche $5.000 to some, but n' r"f ManuaIA900. S9t3. en' C ot coverage on Intemati, C lete by Typewriter, Ink, or Ball Point Pen ['- Postage $ Certified Fee Return Receipt Fee (Endorsement Required) Restricted Delivery Fee (Endorsement Required) Total Postage & Fees $ Sent To Kirk McGee -si;ëèi;Aioï:-¡.¡õ.¡-h·--CõöJ<:'lnJë1-Reg--¡õfninhc--mh---._h_._h_____hh_ or PO Box No. , . .-h.-h--h-U-----hh--2-52-i_C-._-Str_'oo C'. ·it 500 CIty, State, ZIP+4 _, -ou :e- __hh_.moo_hh___ 1Iow...,....oroflln__..._""'~~' At< 99509 I--"""""-...·'''''~·...,....'t Actual Value if Registered DCSë-- SH F~_fee Fee Insured Due Sender Value _u_!f COD --"'----- RD Fee RR Fee (~ ------.- I I --~._-~~---_...,-- "---. -'---.------..---...----.- e .:>4 :hW·;;.' .~"m; ~}~{,. . t'/j¡! t}7 ~ ii: ~ ::2"' CO ...0 a- Postage $ Certified Fee LI') C C C Return Receipt Fee (Endorsement Required) Restricted Delivery Fee (Endorsement Required) C Total Postage & Fees $ (j) ~ Ms. Carol L .__humu___u_h__Petr.Qleum.LaJ Street, Apt. No.; DNR D' .. f G or PO Box No. 1 IVlslon 0 I as -·ë;tÿ,-Štatë.ï7P-i'4'SSU-W'7tA-Avëñüe;-Ste:-800-m---mm'-oo- Sent To .- ---- for the ¡jectto ·ayable ,rupto ;c Mell ·l8l1ons . . Re: The application of Union Oil of California ("UNOCAL") for a spacing exception to allow the drilling and production of the Happy V alley No. 8 gas development well in accordance with 20 AAC 25.055. UNOCAL by letter dated June 11,2004 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on June 24, 2004, has requested the Commission to issue an order in conformance with 20 AAC 25.055 (a)(2) and (4) allowing regular production of the Happy Valley No. 8 gas development well, which if productive may be open to regular production within 1,500 feet of a property line between two landowners and within 3000 feet and in the same governmental section as another well capable of producing ftom the same pooL The surface location of the proposed well is 1324 feet ftom the south line and 1203 feet ftom the east line of Section 22, T2S, R13W, SM. The proposed bottomhole location is 2062 feet ftom the south line and 1173 feet from the east line of Section 21, T2S, R13W, SM. FOR INOUinlES CONTACT LOCATION WHERE INVOiCES WHiE SUBMITTED 06-23-04 PERMITHV8 10194564 FORM 4·28181 (REV, 11-95) PRINTED IN U,SA DETACH STUB BEFORE DEPOSITING CHECK CITIBANK DELAWARE A Subsidiary of Citicorp ONE PENN'S WAY NEW CASTLE, DE 19720 62-20 31T UNOCAL 1031548 100.00 100.00 Union Oil Company of California Accounts Payable Field Disbursing 06-23-04 2007799 . On.e. .l:Iundred Dollars And 00 Cents ************************************************************* STATE OF ALASKA ALASKA OIL & GAS CONSERVATION COMMISSION 333 WEST 7TH AVENUE SUITE 100 ANCHORAGE, AI< 99501 United States II' 200 'j"iIC1 gll' 1:0:l ..00 20 '11: Date 23-JUN-04 100.00 -~.---~-------- 100.00 2007799 Check Amount **********100.00 Void after six months from above date. --r ~ :l g . . a . :l ? II' [j.Å~ PAGE JUN 2.) 2004 . . . TRANSMITAL LETTER CHECK LIST CIRCLE APPROPRlA TE LETTER/P ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME ~ d4 )1' PTD# ...:2ð9-#'j' X Development Service CHECK WHAT APPLIES ADD-ONS (OPTIONS) MULTI LATERAL (Jf API number last two (2) digits are between 60-69) Pn.,OT (PH) Exploration Stratigraphic "CLUE". Tbe permit is for a new weUboresegment of existing we)) , Permit No, . API No. Production.sbould continue to be reported as a function 'of tbe original API number. stated above. HOLE In accordance witb 20 AAC 25.005(f), an records, data and logs acquired for tbe pilot bole must be dearly differentiated In botb name (name on permit plus PH) and API Dumber (SO 70/80) from records, data and logs acquired for we)) (name on permit). SPACING -+ EXCEPTION X DRY DITCH SAMPLE ¥ 11/5 â-ð/l w7 k ~4 ~~ /J The permit is approved subject ·to fuD compliance witb 20 AAC 25.0SS~ Approval to perforate and produce is contingent upon issuance of ~ conservation order approving a spacing exception. (Company Name) assumes tbe liability of any protest to the spacing. exception tbat may occur. AU dry ditch sample sets submitted to tbe Commission must be in no greater ·than 30' sample intervals from below tbe permafrost or from where samples are first caught and ] 0' sample inter:vals through target zones. ~IIJ ~f~ -f~~ ~ed. ßc ~ Program j¿EV Well bore seg 0 ~ On/Off Shore ~n Annular Disposal 0 - - -- - - - -- ~ - - - - - -- - - - - - - - -- . - - - - - - - - -- ~ - - - - - - - - - - . ~ . . . ~~ Unit Field & Pool HAPPY VALLEY. UNDEFINED GAS - 290500 ~ Well Name: HAPPY VALLEY 8 ~ PTD#: 2041140 Company UNION OIL CO OF CALIFORNIA Initial ClasslType DEV / 2-GAS GeoArea Administration 1 Permitfee ~ttaçhe~. . . . - - - - - - - - - - - - Yes... . 2 Lease numberappropri¡;Jte. . Yes. 3 .Unique well.n.ame.a!1d oumb.er _ _ _ _ . - _ _ _ _ _ - - - - - - - - - - - - . ... .... . Yes _..... . . . . ............. . . .. 4 WeUJoc¡;Jted ina.define~pool . No 5 WeUJoc¡;Jted pr9perdistance from driJling unitb9und.ary. . - - - - - · No 6 WelUoc¡;Jted proper .distance. from otber welJs. No.. . - - - - - - - - - 7 .S.uffiçient ¡;Jçre~ge.av~iI¡;Jble [n.drilliog unjt - - - -- · Yes. - - - -- - - - - - 8 Jtdevi~ted. js wellbore platincJu~ed Y~s 9 .Op!'nator onl}! ~ffected party. - - -- · Y~s. 10 .Operator basßPpr9priale_Qond inJQrce . . . . . . - . _ . . . . . . . . . - ...... _.. yes....... _..... _. _. _......... 11 Permit can be i.ssued wjtbout conservation order. . . . · No · . Spacing E)(ception required Appr Date 12 Permit can be issued wjtbout administratille. appr9vaJ . . . . Yes. . . RPC 6/29/2004 13 Can permit be approved before 15-day wait Yes 14 WelUocated wi.thin ~rea al'ldstrat¡;JauthQrized by. Injection Order # (PuUO# in.co01ments).(FQr NA . .. 15 .AJlweIJs.witJ1inJl4.l1Jile.area.ofreyiewideotlfied(For&ervjcewellOI1I'lL. _...... _..... .NA.................. _. _... -.. 16 Pre-produ.ced injector; ~ur¡;Jtion.of pre-production less than.:3 months. (for.service well onJy) . NA. 17 ACMP.F'indingof COl'lsiste!1cy.has been Jssued. for. this pr9jeçt NA. Engineering 18 .C~Odu~tof strif\gprov\ded . . - - -- Yes. · 16" @ 86'.. . .19 .8.urfacecasing. protec.ts. alLknown. USDWs . . . . Yes. - - - - 20 .CMT v9l adequate. to Çifc.ulate oncond.uctor & su.rf. csg . Yes. . · . 8dequate eXcess, . . . . . 21 .CMT v.ol adeQu.ate. to tie-in .long .string to.surf çsg. . . Yes. 22 .CMT wilJ CoveraJ\ kno'Vlinpro.ductive borizons. . Yes. 23 C.asing designs ~dequaíe f9r C..T" B&.perl1Jafr.ost · Yes. - - - - - - - - -- 24 A~equ¡;Jte.tanKage.oJ fe.serve pit. Yes · . Kuukpik Rig.5, . - - - - - 25 Ita.re-Pri\t hasa.10:40~ for ¡;JÞandol'lrnent beeo <lPPJQved . NA. · New welt 26 _APequ¡;Jte.wellbore separ<ltio.nproposed. . . . . . . . . . . - . . . . . - . ... _ yes..... _. _. _. _... _. _. -... -... 27 Jf.diverter req.uired, does it meßt reguJations. . NA. · W¡;Jiverrequested. . Appr Date 28 D.rilling fluid program schematic.& equip Jistadequ<lte. . . . · Yes. · . Max MW.9,2. ppg. . WGA 6/29/2004 29 .BOPEs,. do they meet reguJa.tion . Yes. - - -- 30 B.OPE.press ra.ling ~ppropriate; .test to .(pu.t psig in .comments) . . Yes. · . Test tp30QO. psi. MS~ 17.32 P$i.. 31 Chokemanjfold CQmplies w/API RF'-5:3 (May 84). . - - - - - - Yes..... . 32 Work will occ.ur withoutoperatjonsbutdown. . - - - - - - . . . . Yes. 33 .Is presence of H2S g~s prob.able. . . · No 34 Meçba.nical.ccodJt[on p{ wells within 80R verified (for. s.ervjce welJ onJy) NA. ~~,--~-- --~ Geology 35 Permit cao be [s$l!ed w/o hydrogen s.ulfide meaSJ,lres . Yes. 136 .D.ata.presßnted on. pote.ntialpveJRreS.sure .zones. . NA Appr Date 137 Se[smicanalysJs. of sballow gaszooes. . NA. . RPC 6/29/2004 138 SeabedconditimJ survey.(if off-shore) NA. - - - - - - 39 . CQnta.ct namelphoneJor.weekly progre~sreports [expIQratpryonly). NA. Geologic Date.: Engineering Date Date Commissioner: Commissioner: DTs 0/JO/<l %ýo/