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HomeMy WebLinkAbout178-001 • . Schwartz, Guy L (DOA) TiV 1 9-'1001 From: Schwartz, Guy L(DOA) Sent: Tuesday, February 20,2018 9:49 AM To: 'jim4thgn@gmail.com' Subject: FW: Long term shut-in and suspended wells-Alaska Crude Corporation (ACC) Please read and reply to the below email. This is separate from the deadline for P&A operations due March 3 rd. Guy Schwartz Sr.Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office SCOW CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226) or(Guy.schwartz@alaska.gov). From:Schwartz,Guy L(DOA) Sent:Wednesday,June 28,2017 4:10 PM To:casscon@alaska.net; Dbaca148@gmail.com Subject: Long term shut-in and suspended wells-Alaska Crude Corporation(ACC) Bill and Daniel, The AGOCC recently conducted an open workshop with all state operators to discuss long term Shut-in wells and how we can better manage them on the regulatory side.One of the action items from that meeting is that all current Alaska operators come to the AOGCC office and review long term shut-in wells(including suspended wells) in a face to face informal meeting.This meeting should give the commission some idea of long term plans for reducing the well count of unused wells in our state and also give the operator a forum to discuss the future utility of the wells. Please note that this is an "in person "meeting and may not be substituted by sending us information by mail.Our last correspondence with ACC was in 2009 regarding the Katalla, Pelch,Moose Pt. 1 and Burglin 33-1 well. Timing for this meeting with the AOGCC is roughly this August, 2017. Call our office to set up an appointment at 907- 273-1230. Regards, Guy Schwartz Sr. Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226) or(Guy.schwartz@alaska.gov). 1 Request for AOGCC variance Moose Point#l well Subject: Request for AOGCC variance Moose Point#l well From: Jim White <jimwhite@satx.rr.com> Date: Wed, 28 Jan 2004 11:45:29 -0600 Tö:tommaunder <tolll--"matlpder@achnin.state.ak.us> CC:.jimw hite.<jim@applecapital.net> Date:l/28/04 To: AOGCC Attention: Tom Maunder, Engr.Manager From: Alaskan Crude Corp., Jim White- jirnwhite@satx.rr.co~ Subject: Request for variance to 20 AAC25.035 Drilling Regulations for the re-entry of the Moose Point#1 well. Per DST #1 when this well was initially drilled, at mid perf depth of 8681' MD, 8659' TVD (assuming a straight hole and 22' RKB) , reservoir pressure was reported to be 4065 psi or 0.47psi/ft gradient 9.0 ppg EMW. Using a 0.1 psi/ft gas gradient would result in a maximum anticipated surface pressure (MASP) of approximately 3200 psi.\/' tx.~"':)\~f'J'\.\("~'\.\ L.. S\<.. ':' 3~~'-J > Drilling Regulation 20 AAC 25.035(e) defines the requirements for BOP equipment and in general, divides equipment between 'less than API 5K' and 'equal to or greater than API SKI. Given that MASP exceeds 3000 psi, we intend on using API 5K working pressure y/ equipment. However, per 20 AAC 25.035 (h) (1), we would like to apply for variance to permit the use of equipment for the 'less than 5000 psi' category as opposed to 'equal to or greater than AP I 5 K' . All BOPE will be API 5K working pressure. ~/r/\ '---b- More specifically, we seek variance for; ~~~~~û~\~ - 20 AAC 25.035(e) (1) the use of three preventers as opposed to four ~~~~~~~\\~ - 20 AAC 25.035 (e) (4) (F) (i) 2" choke outlets as opposed to 3". - 20 AAC 25.035 (e) (4) (H) (i) eliminate the requirement for a remotely controlled, hydraulic adjustable choke near the drillers s tat ion c:é. \ '\ w...\ "CJ.:\ (( c..\-..ù ~« C \" t" Q.. ~c ~ "- <...0 \>ù \) \ '\ \-1 <: \:, () ~ ~ \0' s \ - 20 AAC 25.035 (e) (4) (H) (iii) upstream of each choke, use one full-opening valve as opposed to two - 20 AAC 25.035 (e) (4) (H) (iv) bypass line with one full-opening valve as opposed to two We request these variances on the basis that MASP marginally exceeds the 3000 psi WPcategory. We have access to a 7-1/16" double gate BOP stack that has 2" outlets between the rams, not 10f2 2/12/20049:14 AM --.\ C ""'\'U"'--" "'¡ c/-) U p'='-> \ C S ') ~~--;\ ÇbCCþo ù~ '\~:oR ìO\-\~ ~<::£?~ <6bbb~Zb~~ ~~r~ s-~5~ ~~~~~~-\-.~ ~ S-o~~ ~~ '6- 0 ~> SÒLþ~S()')ç ~~ ~'~~~ <: Q.(~~-\-fÇ\- c{;s ~-¡:. y'\O ~ -- S-f . ~O ~_. ./'. ~ _c~~fYS ~íJ G qO\~ d- 10) ',J. c:<» \O65~'~'\) ) ,-'\ '\.." .' . 1\ , \.: t \ ,I , \. ( ~I?V\ oj Kt -~\"C) 'D) lU \' ( Õ Id-ÀÚ \T) "\>u ~ SSD Re: Moose Point Unit #1 Location Information /78 -(;)D/ HI-t!.- ( ,( Subject: Re: Moose Point Unit #1 Location Information Date: Tue, 22 Apr 2003 09:03 :48 -0800 From: Steve Davies <steve - davies@admin.state.ak.us> To: Peter McKay <mckaype@netscape.net> CC: Robert P Crandall <bob_crandall@admin.state.ak.us>, Tom Maunder <tom_maunder@admin.state.ak.us> Dear Mr. McKay: AOGCC regulates well operations associated with re-entering and re-completing Moose Point Unit # 1 for testing purposes, but we do not regulate when those activities occur. Because this proposed operation is a re-entry of an abandoned, existing well, AOGCC regulations require the operator submit and obtain the Commission's approval of an application for a pennit to drill. Once filed, the review and approval time for the application should be about 2 weeks, if the application is complete. To date, AOGCC records do not indicate that a pennit to drill application has been filed for this operation. ACC (the operator proposing the re-entry and testing) is aware of ground conditions in the area, and apparently was in contact with crews that were working near Moose Point Unit #1 this winter and spring. ACC is also aware that the pennit to drill is only one of possibly many pennits that must be obtained as this well lies in Alaska's coastal zone. Other agencies that may be involved in pennitting the operations associated with this project are the Division of Governmental Coordination, the Departments of Environmental Conservation, Fish and Game, and Natural Resources, and the Kenai Peninsula Borough. If you are interested in the pennitting process, the starting point is the Alaska Coastal Management Program (ACMP), which requires projects in Alaska's coastal zones be reviewed and found consistent with statewide standards. This ACMP review process directs operators to the pennits that are needed from state agencies. If an ACMP review is deemed necessary, the review period is typically 50 calendar days. You can find a complete description of the process on the web at http://ww.w.alaskacoast.state.ak.us/. I searched the state public notice site (http://notes3.state. ak.. us/pn/pu bnotic.nsf/ ($AllPublicNotices )/$SearchF onn ?Search View) using the key words "Moose Point," and the only notices filed concerning this project were those associated with the application for spacing exception (Conservation Order 488). To date, there has not been any notice published for an ACMP consistency review for this project. ' Please let me know if I can help further. Steve Davies Peter McKay wrote: Steve, Thanks for the reply. I see that the well is located in what is now the KPB Grey Cliff Subdivision. Not far from my land in Moose Pt. I cross Otter Creek on my way out. This area is rough (soft, muddy and marshy). It's tough to imagine a drilling rig/coil unit/wireline unit with tanks and support equipment getting out there except on ice roads in the winter. Is the timing of when and how the well will be worked something that the Commision will be involved in? I'd like to hear more about this if you please. Re: Moose Point Unit # 1 Location Info1111ation Thanks Pete " ~ steve - davies@admin.state.ak.us wrote: >Dear Mr. McKay: > >The Moose Point Unit #1 well is located near the northern coastline of >the Kenai Peninsula about half way between Nikiski and Point Possession >(which lies at the mouth of the Turnagain Ann). The well is set back >from the coastline about 5000 feet, and it is located about 300 feet >from the southern bank of Otter Creek. The legal description for the >surface location of the well is 2512 feet from the north line and 2124 >feet from the east line of section 14, Township 9 North, Range 9 West, >Seward Meridian. This description will allow you to plot the well >location on a USGS topographic map. > >This well was drilled by a company called AMAREX in 1978, and it was >plugged and abandoned in 1979. Conservation Order 488 grants Alaska >Crude Corporation's application for exception to the well spacing >provision of20 AAC 25.055(a)(2) for the purpose ofre-entering and >testing the well. > >Ifyou would like to find out more about the Oil and Gas Conservation >Commission, review our regulations, or review any of our decisions, >please check our website at: >http://wvvw.state.ak. us/local/ akpages/ A.D MIN/ogc/holneogc.httn. > >Ifyou have any questions, please call me. > >Sincerely, > >Steve Davies >Petroleum Geologist > Alaska Oil and Gas Conservation Commission >Telephone: (907) 793-1224 >Fax: (907) 276-7542 >steve - davies@admin.state.ak.us > > > > >Subject: Date: From: Organization: To: [Fwd: Conservation Order 488] Fri, 18 Apr 2003 12:48:18 -0800 J ody Colombie <jody - colombie@admin.state.ak.us> Alaska Oil and Gas Conservation Commission Stephen F Davies <steve_davies@admin.state.ak.us> Steve, can you please answer this e-mail. Re: Moose Point Unit #1 Location Information Jody Subject: Conservation Order 488 Date: Fri, 18 Apr 2003 12:41:04 -0800 From: Peter McKay <mckaype@netscape.net> To: jody - colombie@admin.state.ak.us People, 1m writing in regard to Conservation Order No. 488. Can you please tell me where the Moose Point Unit #1 well is physically located? I own property in the Moose Point Subdivision (Kenai Peninsula Borough) and wonder if the two Moose Point's are the same. Thanks Pete mckaype@netscape.net Peter McKay 55441 Chinook Rd Kenai, AK 99611 PLUGGING & LOCATION CLEARANCE REPORT State of Alaska .ALASKA OIL & GAS CONSERVATION COMMISSION PTD No. Lease Memorandum To File: API No. Operator Location Abnd Date Spud: l/~6/~, TD: /dD, 05-~ , Completed Note casing size, wt, depth, cmt vol, & procedure. Liner: -- Perf intervals - tops: Review the well file, and comment on plugging, well head status, and location clearance - provide loc. clear, code. Well head cut off: Marker post or plate: / Location Clearance: Conclusions: Code AUgUSt 19, 1982 Mr, L. A. Darso~ Di strict Superinten~nt ~.~co Production C~ny P.O. Box 72~' AnChorage, Alaska 99510 Re: ~}~~. - }~oose Point Unit No. Sec. 14, ~gw, S ~ Our representative ins~cted t~is site on June 25, 19~2. ~s found that the pro~r ~el! ~r~r was installe~ and ~ade material had ~en cleaned irom the site. ~he 5enai ~ninsula Borough Planning C~[~ssion is satisfied witi~ the condition of the site and accepts the site as is on ~w~half of the ~enai Peninsula ~oroug'h, the site owner. Consequently, final abandonment of ~oose Point Unit 1qo. 1 is Sincerely, Lonnie C. ~mlt ~ ~nc !o~re cc: }~enai Peninsula Borough AcceF, tance of site gradin~ NAI PENINSULA BOROUGH BOX 850 . SOLDOTNA, ALASKA 99669 PHONE 262-4441 August 12, 1982 STAN THOMPSON MAYOR Alaska Oil & Gas Commission 3001 Porcupine Drive Anchorage, AK 99501 ATTN: RE: Gentlemen: Mr. Jim Trimble Moose Point #1 Well The Planning Commission of the Kenai Peninsula Borough at their August 9 meeting agreed to accept the site grading around Moose Point #1 Well as is. Enclosed is a copy of the unapproved minutes of that meeting. Sincerely, Frank G. Lazer Borough Surveyor FGL:cm Enclosure EXCERPT FROM MINUTES KENAI PENINSULA BOROUGH PLANNING COMMISSION MEETING AUGUST 9, 1982 AGENDA ITEM T: EXPLORATORY.WELL SITE ON LOTS 248, 249, 250 GRAY CLIFF SUB. STAFF MEMO STATED: ~~ has completed an exploratory oil drilling on Lots 248, 249, 250 Gray Cliff Subdivision. The site has been inspected by both myself and the Alaska Oil & Gas Commission. The site has been properly graded but the Oil & Gas Commission would like a letter accepting the grading to close their file on this site. Staff would request that the Planning Commission accept the site as is and instruct the staff to forward a letter to the Alaska Oil & Gas Commission accepting the site as is. END OF MEMO Mr. Lazer reviewed the above memo. He stated that he went out and looked at the site and it.has been determined that it is fairly well graded. Alaska Oil & Gas Commission who has jurisdiction over these leases has requested that the Planning Commission write them a letter accepting the site as is. He stated that no oil was found but that some gas and a water well were found. MOTION: CommissiOner Ernst, seconded by Commissioner Gangl, made a motion directing staff to accept the site as is and write to Alaska Oil & Gas Commission informing them of same. Hearing no discussion or objections, the motion carried unanimously. Amoco Production Company Post Office Box 779 Anchorage, Alaska 99510 907 - 272-8471 L. A. Darsow District Superintendent July 12, 1982 File' LAD-732-WF Mr. Lonnie C. Smith Commi ssi oner Alaska Oil and Gas Conservation 3001 Porcupine Drive Anchorage, Alaska 99501 Commission Gentlemen' Amarex - Moose Point Unit Well No. I Final well location clean up has been completed at Amarex Moose Point Unit Well No. 1. The well location was inspected on June 25, 1982. Attached is the appropriate Sundry Notice requesting final approval for abandonment of this well. Please notify this office of the approval. Very truly yours, L. A. Darsow District Superintendent Attachment TWB' dt cc- Mr. W.A. Wackerly, Amarex STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION SUNDRY NOTIC ..S AND REPORTS ON WELLS 1. DRILLING WELL [] COMPLETED WELL [] OTHER [XI 4. Location of Well 2511.5' FNL, ~124' 2. Name of Operator_ 7. Permit No. Amarex, Inc. 78-1 3. Address 8. APl Number P.O. Box 1678, Oklahoma City, Oklahoma 73101 5o-13320312 9. Unit or Lease Name Hoose Point 5. Elevation in feet (indicate KB, DF, etc.) 22' RKB FEL, Section 14, T9N, R9W, S.M. 6. Lease Designation and Serial No. ADL 59358 12. 10. Well Number 1 11. Field and Pool Wildcat Check Appropriate Box To Indicate Nature of Notice, Report, or Other Data NOTICE OF INTENTION TO: SUBSEQUENT REPORT OF: (Submit in Triplicate) (Submit in Duplicate) Perforate [] Alter Casing [] ~ Perforations [] Altering Casing Stimulate [] Abandon [] Stimulation [] Abandonment Repair Well [] Change Plans [] Repairs Made [] Other Pull Tubing [] Other [] Pulling Tubing [] (Note: Report multiple completions on Form 10-407 with a submitted Form 10-407 for each completion.) 13. Describe Proposed or Completed Operations (Clearly state all pertinent details and give pertinent dates, including estimated date of starting any proposed work, for Abandonment see 20 AAC 25.105-170). 1. Well location has been cleaned up. The location was inspected on June 25, 1982, 14. I hereby certify that the foregoing is true and correct to the best of my knowledge. Signed ~,,., ~.-~ ~k~"r'~C~t.>~-~-~.-~ ~ The space below for Commission use Title District Superintendent Date Conditions of Approval, if any: :. Approved by By Order of COMMISSIONER the Commission Date Form 10-403 Rev. 7-1-80 Submit "Intentions" in Triplicate and "Subsequent Reports" in Duplicate THOMAS E. KELLY Consultant Earth Sciences JulY 14, 1981 Mr. Lonnie C. Smith, Commissioner Alaska Oil and Gas Conservasion Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Re: AOGCC Regulations Abandonment and Plugging Well Abandonment Marker and Location Clean Up Dear Commissioner Smith' I have been furnished a copy of your June 4, 1981 letter to my client, Amarex, Inc., Oklahoma City, Oklahoma, concerning final in- spection and approval of clean up for the following exploratory wells- .( 1 ) ?.Amarex~.~: i s 1 a ~. Grande~# 1, (2) ~ Amarex Moose Point With respect to the 'first well (Isla Grande), I have been under the impression that all requirements have long been satisfied. The site was re-entered during the winter of 1975-76 and the reserve pit received much additional site restoration. All debris found around the periphery of the location and winter access road was collected and removed. The entire area was hydroseeded aerially and personnel from AOGCC have, to my knowledge, witnessed the new growth. I am not aware of any stipu- lations that have not been satisfied. By copy of this letter I am enclosing a copy of your June 4th letter to Amoco Production Company, attention ~.lr. Jim Saviers. Under an agreement between Amarex and Amoco, the latter accepted responsibility for satisfying AOGCC requirements on clean-up and site restoration. It is my understanding that everything has been completed as required by regulations except for minor ground dressing with a small dozer to be accomplished as soon as weather permits. JUL 1 5 ]981 · ANCHOFIAGE, ALASKA 99501 PHONE 225 CORDOVA, BUILDING B, SUITE 307 · 274-9671 Mr. Lonnie C. Smith July 14, 1981 Page Two Mr. Jim Saviers has advised that he will make arrangements for AOGCC personnel to conduct a final inspection at your convenience. Please advise the undersigned if you have any further requests of Amarex on satisfying the requirements under the regulations captioned in your letter. ~/~.~~Verv/~ul~ yours, ~ cc: Mr. W. A. Wackerly, Amarex Mr. James Saviers, Amoco w/encls RE£E VED JUi_,, 1 5 1~81 Alaska Oil & Gas Cons. Corem#ss!.,];-, Anchorm;~: MEMORANDUM State of Alaska hai . Lonnie C. Smith ;~' FILE NO: FROM: Commi s sione r Ben LeNorman F~tro le um Inspe cto r TELEPHONE NO: SUBJECT: Inspect ~oco' s [',loose Point #1 for Final Surface Abandonment, Sec. 14, TgN, R9W, Wi 1 dca t ~ida¥, June 25, 1982 - Z departed my home at i0-00 a.m. for a 10:30 a.m. showup and 11:00 a.m. departure ~a AAI Twin Otter for Kenai arrivin9' at 11:30 a.m. I rented a car and drove to the Shell-Amoco heliport where I departed via Bell 204 helicoDter for the location, accompanied by · Karl Baun, A~co s[~cial projects engineer. This well, drilled in 1978, is approximately fifteen miles north of the Captain Cook Park north of Eenai. ~he trailer houses and. out buildings purportedly belong to surveyors hired k~y the Kenai Municipality to survey a permanent access road into the area. Accordin9 to Mr. Baun, this site will be included in acreage to he offered, in a land lottery' sometime in the future. As the accompanying pictures show, the area. in the immediate vicinity of the well marker is under water. I feel this should ~,~ drained.. Additionally, the k~nch created by the bulldozer (pictures ~-i0, ~,~11, #12) in refillin~ the reserve pit should ~ contoured. The cen~nted %.~ter' well (pictures ¢6, ¢r7, #8), which sticks out of the 9round over two feet, should either k:e cut off or additional fill added when contourin~ the pad. Natural surface debris could be cleaned u~> better, though none is rig 9~nerated. recommend this surface location abandonment ro~~ndlt~on---~ ~ ~ as s-et forth ih-- e~ag r a ~> h. I returned to Kenai at 2:00 p.m. and departed Eenai via AAI Twin Otter at 3:15 p.m. arriving in Anchorage at 3:45 p.m. and at my home at'4:15 p.m. ALAS~ OIL AND GAS O!NSERVATION COMM7 ~£ON SURFACE ABANDONMENT REPORT 20 AAC 25, ARTICLE 2 FILE INFORMATION: Operator Surface L0ca(ion of ~ell ~"%71,~ Ft F /JL ~!~ Ft..F ~L · ~ ........ ,;_ , '~ sec. /¥ ,T_?_ad_, M. 20 AAC 25.120: WELL ABANDONMENT MARKER: Dia. Steel Post (4"Min.) ~, Length (10' Min.) ,//~' Height Above Final Grade Level (4' Min.) /~ Top of Marker Pipe Closed with: Cement Plug Screw Cap Set: On Well Head , On Cutoff Casing , In Concrete Plug Distance Below Final Grade Level ~ Ft. in. Side Outlets: All Valves and Nipples Removed 5/~_.~- All Openings Closed , With Blinds , With Cement AP1 No. 50- /_~,~-~O~/..~ Wel 1 No. Field & Pool Welds _~,. INFORMATION BEADWELDED DIRECTfiLY TO MARKER POST: (List ~%ere Different from File inf0n~atio~5' Operator . ./~~ Unit or Lease Name Well Number / , Surface Location of Well: ..~P~!/.rFt' F~ L, .~ta.~ Ft., F~.~--L, Sec /~ , T. p ~, R O 20 AAC 25.170: LOCATION CLEAN-UP PITS: Filled In ~, Liners Removed or Buried Debris Removed SURFACE OF PAD AND/OR LOCATION: Rough ~ Smooth , Contoured Other Flat Compacted , CLEAN UP OF PAD AND/OR LOCATION: Clean , Pipe Scrap ,'Iron Scrap Paper--, Other. Wood ~'"wI Mud , Cement , SURROUNDING AREA: Wooded W'~, Brush Sand , Other · Tundra Grass __, Dirt __, Gravel CONDITION SURROUNDING AREA: Clean /, Trash from Site Other / , Trees and/or Brush from Clearing Site ACCESS ROAD: Dirt ~% Gravel , Ice CONI)ITION ACCESS ROAD AND SURROUNDING: Clean ~, Rough , Smooth , Trash from Operations , Trees and/or Brush from Clearing Road , Spoil from Clearing Road Other REMAINING TO BE DONE: _L~./~.'/~4¥ ~.j RECOMHEND APPROVAL O'F ABANDONMENT: Yes INSPECTED BY 05/26/81 · No~"'"- Final Inspect ion June 4, 1981 Amarex, Inc. P. O. Box 1678 Oklahoma City, Oklahoma 73101 Re: ~Alaska Oil and Gas Conservation Commission Regulations Article 2, ABANDON~E~TT AND PLUG-GII.~G, 20 AAC 25.120 ~'~ELL ABANDO~,~-~EI'~T MARKER and 20 AAC 25.170 L©CATION CLEAN UP. Gentlemen: In regard to the above referenced regulations, your attention is called to an attached list of wells ~hich, according to our records, have not received a final location inspection and approval of clean up. In compliance with 20 AAC 25.170 Section (a), "Within one year of suspension or abandonment of an on- shore well", all clean up work is to be finished. Section (b) provides the means for an extension of time if a vali¢] reason exists. Section (c) provides for on site inspection. Consequently, we are presenting the following list of your abandoned and/or suspended wells. Many of these are now more than one year old and are not in compliance with regulations. Others should have the final inspection completed this summer while weather peri, its. This list covers the years 1975 to date. There may be so~e earlier wells that also need inspec- tion. If you have any earlier wells to be inspected this summer please inform us. Therefore, we are requesting a schedule from you for this summer when our field inspectors can accompany your representa- tives to these sites for the final clean up inspection. Yours tru 1~ Lonnie C. Smith Commi s si one r LCS/JKT:ba AMAREX INC. PLUGGED & ABANDONED Isla Grande #1 Moose Pt. Unit #1 AMAREX, INC. An Energy Compa'-~ · POST OFFICE BOX 1678 OKLAHOM,,~ -CITY. OKLAHOMA 73101 (405) 272-9201 August 29~ 1980 Department of ~N~a~ral Resources Division of~>'~& Gas 3001PorcA~p~ine Drive Anchor~, Alaska 99502 Re: Amarex #1 Moose Point Gentlemen: Enclosed are logs to replace those lost by Arco. Very truly yours, AMAREX, INC. E. R. Reider Chief Geologist ERR:nf Enclosure COA&M CO.t,A A,' J GqC;I_ 2 DEI5%RTMENT OF NATIJRAL RESOIJilCES ,r? MINERA~ ~D ENERGY ~GEME~ April 4 1979 I ~T~ P.O. Box 1678 Oklahoma C~ OK 73~01 Reference: Moose Point Unit Agreement Moose Point Well ~1 Lease Operation 77-163 Attention: R.L. Rich Land Manager Gentlemen: On February 9, 1979, ~he operator was notified and the Oil and Gas Conservation Commission advised that the Unit Operator must complete the Moose Point Unit No. 1 well as a producer or an abandoned well by March 15, 1979. Amarex, Inc. filed a Sundry Notice (Form 10-403) with the Alaska Oil and Gas'Conservation Commission (OGCC). The notice reflected the change in status of the Moose Point Unit ~1 Well from suspended to completed. On March 30, 1979, the Commission approved the well completion effective ,. March 15, 1979. !, - " In accordance with Section 9 of the referenced Unit Agree- ment, a second unit well must be commenced within six (6) months after the completion of the first well. Since the six (6) month period is during the summer and summer opera- %ions are not possible in that area, the state will extend the time in which to commence the second well until the 1979-1980 winter drilling season, provided that a request for this extension is filed, accompanied by a firm commit- ment by the operator to drill the second well and a drilling rig commitment. The rig commitment need not specify a particular date, but must reference the winter drilling season of 1979-1980. This material must be filed with this Division at least thirty (30) days prior to %he required second unit well commencement date, which will be September 15, 1979. 10-J3LH Amarex, Inc. April 4, 1979 Page Two The drilling of the original well to a deeper bottom-hole location will constitute a new well, in accordance with the regulations of the OGCC. Consequently, the well will fulfill the requirements of Section 9 of the Unit Agreement as stated above. Testing of the Upper Birch Hills Formation or other zones in the referenced well will be permitted, and if hydrocarbons are discovered in paying quantities in the well, it will satisfy the "paying quantities" provision in Section 9 of the Unit Agreement. Sincerely, Ethel H. Nelson Leasing Manager cc: Amoco (Anchorage) Claude Neely Amoco Production Co. Security Life Building Denver, CO Form 10-403 REV. 1-1D-73 Submi t "1 ntentions" in Triplicate & "Subsequent Reports" In Duplicate STATE OF ALASKA 0IL AND GAS CONSERVATION COMMITTEE SUNDRY NOTICES AND REPORTS ON WELLS (Do not use this form for proposals to drill or to deepen Use "APPLICATION FOR PERMIT---" for such proposals.) o,- I--i GAS r-1 WELLL-~ WELL L--=I OTHER Exploratory 2, NAME OF OPERATOR Amarex, I nc. 3. ADDRESS OF OPERATOR P. O. Box 1678, Oklahoma City, OK 73101 4. LOCATION OF WELL At surface 2511.5' FNL, 212.4' FEL 13. ELEVATIONS (Show whether DF, RT, GR, etc.) 163 grd. 185 D.F. 14. Check Appropriate Box To Indicate Nature of Notice, Re is: AP, NU~E.,CAL CODE ADL-59398 8. UNIT, FARM OR LEASE Moose Point Unit 9. WELL NO. #1 10. FIELD AND POOL, OR WILDC, Wildcat 11. SEC., T., R., M., (BOTTOM HOi Section 14,T9N, R9W, SM 12. PERMIT NO. 78-1 3ort, or Other Data NOTICE OF INTENTION TO: TEST WATER SHUT-OFF FRACTURE TREAT SHOOT OR ACIDIZE REPAIR WELL (Other) PULL OR ALTER CASING MULTIPLE COMPLETE ABANDON* CHANGE PLANS SUBSEQUENT REPORT OF: WATER SHUT-OFF ~ REPAIRING WELL FRACTURE TREATMENTH ALTERING CASING SHOOTING OR ACIDIZlNG ABANDONMENT* (Other) (NOTE: Report results of multiple completion on Well Completion or Recompletion Report and Log form.) DESCRIBE PROPOSED OR COMPLETED OPERATIONS (Clearly state all pertinent details, and give pertinent dates, inclucling estimated date of starting any proposed work. 1. Status O'f well changed from suspended to abandoned 3/15/79. 2. Well plugged as per attached procedure. 3. Wellhead assembly to be removed and replaced with required abandonment monument after access road is sufficient, ly frozen to permit surface transporation. 4. Reserve pit and location to be backfilled, contoured, and revegetated satisfactory to 0GCC. Subsequent Work Reported RECEIVED /'// , 16. I hereby cel~i~y tl~at t~e foregoing is /~~~-~ ~~/ Agent Ama rex I (This space for ~ate offlc~--~~ CONDITIONS OF APPRO~L,q~r~: ~ Imtru~ions On Revere Side DATE . March 14, 1979 Al~arex Inc. Attn~ R. Lo Rich Land lianager P.O. Box 1678 Oklahoma City, OkIahoma 73101 ~r, Rich: In response to your letter of Harch 7, 1979 we have the following comments. The Moose Point Unit #I in its present condition will not require further plugging, however, form 10-403 aust be filed to reflect a change of status of the well from suspended to abandoned on March 15, 1979 and requesting approval to delay installation or'the P&A marker. The wellhead will eventually have to be removed and the well marker installed as required in 11AAC 22.120. The location and pits aust eventually be leveled and an inspection of the location by a representative of the Commission is also required. After final abandonment is approved a new form P-7 must be filed indicatint the final status of the well. If the well is re-entered after the abandonment date of March 15, 1979 (during the 1979-1980 drilling season) it will require submittal of a form P-1 and will be treated as a new well subject to all requirements of Title II, chapter 22 If you have further questions concerning our.requirement please do not hesitate to contact us. Sincerely, Hoyle H. Hamilton Commissioner AMAI~EX, INC. - An ~.net,gy Cornpan~y · POST OFFICE BOX 1678 · OKLAHOMa, CITY, OKLAHOMA 73101 · (405) 272-9201 March 7, 1979 Mr. Hoyle H. Hamilton, Commissioner ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage, Alaska 99501 Re: Moose Point Unit Agreement Moose Point Unit Well No. 1 Lease Operation 77-163 Dear Mr. Hamilton: This is in response to your conversation with J. G. Saviers on February 27, 1979, concerned with the subject unit operation. The Moose Point Unit well, since August 31, 1978, has been held in a "sus- pended status" to permit re-entry and the conclusive testing of a Birch Hills zone that, due to the existing environmental restrictions and concern for a safe operation, could not have been undertaken in March, 1978. The Division of Minerals and Energy Management's decision further provided that if testing had not been completed by March 15, 1979, the well would be plugged and aban- doned and the unit would terminate unless further drilling, as provided by section 9 of the Unit Agreement, was initiated. In January, 1979, when it became apparent that Amarex and Amoco Production Company would be unsuccessful in their efforts to locate a rig suitable to complete the operation, an extension of time was requested through the 1979-80 drilling season. Our request for this extension of time was denied February 9, 1979, and the Oil and Gas Conservation Commission was advised that the unit operator must complete the Moose Point Unit well as a producer or abandon the well by March 15, 1979. Further, in accordance with section 9 of the unit agreement, the operator is to commence the second well within six months after completion of the Moose Point Unit No. 1. Since this six-month period is during the summer when operations are not possible in the area, the Department of Minerals and Energy Management will extend this time to commence a second well until the 1979-80 winter season provided other conditions are met. AMAR'EX, INC. Mr. Hoyle H. Hamilton, Commissioner March 7, 1979 Page Two If certain impediments are resolved by Amarex and others, it is planned to re-enter the Moose Point Unit No. 1 as early as possible during the 1979-80 season, drill and clean out to the old total depth, drill new hole to the satisfaction of the Department of Minerals and Energy Management, plug back and retest the Birch Hills interval not conclusively tested earlier, which will meet the demands of the unit's second well obligation. Since Moose Point No. 1, when suspended March 15, 1978, was left in a satis- factory plugged condition, as evidenced by the attached copy of our Form P-7 and letter of March 29, 1978, we respectively request that the only remaining requir~m~.nt.f0r~9~gn.~o~ent, replacement of the wellhead with a surface aban- donment marker, be delayed until restoration of the area may be commenced if the unit is terminated by reason of noncompliance after September 15, 1979. Restoration of the area consisting of repair of the ice road route, leveling pits and location, plugging water well if requested, etc. could commence in October when the ground begins to freeze. If any further information is required, you may contact me or J. G. Saviers, in Anchorage. Very truly yours, A~CAREX, INC. R. L. Rich Land Manager RLR: klm Enclosures cc: U.S. Geological Survey Conservation Division 800 "A" Street Anchorage, Alaska 99501 Attn: Mr. Rodney H. Smith Area 0'~1 & Gas Supervisor , I'(~'X ~ J 11(, I'. (). Box March 29, 197~; Mr. O. K. Gilbreth Division of Oil and Gas Conservation Department of Natural Resources State of Alaska 3001 Porcupine Drive Anchorage, Alaska 99501 Dear Mr. Gilbreth: Completion Report Moose Point Unit No. 1 Attached is your Form P-7 in duplicate for completion of drilling the subject exploratory well. Final prints of the open hole logs will be forwarded to your office as soon as they are available. As shown by the attached form, two separate horizons were tested and plugs subsequently set above them in 7 inch production casing. In addition, a cement plug was placed from 55-140' ~H), diesel fluid to surface and a wellhead with appropriate surface valving was set. As discussed by Amoco Production Company's G. R. McGregor and Lonn~e Smith, on March 14, 1978; we preferred not to set a surface abandonment marker at this time due to our intent to conduct further tests of the Birch Hills sands during the 1978-79 drilling season and we, therefore, requested and received permission to leave the well in a suspended status. As you are aware, the pending break-up and potential road problems necessitated suspending operations earty this month, however, analysis of test data indicates additional testing may be required to fully evaluate the well. Any required restoration of the drill site and access road will be made upon completion of operations. Y°uri~t ruly, / R. L. Rich, Land Manager ', ,~ 1' ' · StJIIBII'I' IN l)l: 'A'I I':° ST/~TE OF ALASKA .... ~t'"' ~'' II'kt'l'l' OIL AND GAS CONSERVATION COMMITTEE . J imlm WELL COMPLETION OR RECOMPLETION REPORT AND LOG* lal TYPE 01" WELl .... ,v~,.~.'" ~ "*~,,~:,.,. ~ ~ ~ (,,b,'~ _Suspended .Explo.ra b. TYPE OF COMPLEte\: ~. NAII}~ Olr k)l'l;ltiTOll Amarex, Inc. 3. ADDRE,~R OF OI'EItATOI~ P, 0. Box 1678, Oklahoma City. 0klahoraa 7310] 4. LOCATION L)~' ~'ELL IRcport location clcarl~ and in accordance ~'ith ~ ~tatc rcq.ir~me.l~)~ ~t~,~,~ 251L5' FNL, 2124' FEL, Sec. 14, TgN, Rgw, S.M. At top prod. Interval reported below Same At total de.p~ Same t3 I)ATE SI'UI:II)ED Jl.I.DA'IE T.D. I~EACIIED {is. DATE COi51P SUSP Ol~. ABAND. 16 I~I~E;VA'I'ION.q iI)l', liiqll. 1-26-78 ~ 3-1-78 ] 3-15-78 Susp. 22' RKB 10,0~8'. ~ 5~' ~ , O - TP ~ PRODUCING IN'I~II$~AL(S). OF THIS CO¢IP~TION--~P, BO~OM, NANIE lhID AND TVD)' None - plugged.back to 55' bP. b z\l'l :,ll\ll;IJlt',\l, 50-1.33-20312 ADL 59358 (])~'DIjrlNI)IAN, AI,I,t)I'I'}CI'; 1.~1{ 'l'lillll'; NANli ~Io.ose Point Unit 9. WI'il,l, N(). 1 10. FII',I~I) lkNt)I'()oL. ()it WIl,lli*tkT Il. Si~(J , T.. R., .M, ( I;O'I'i'(DNI Sec. 14, T9N~ Rgw~ S.lq. 12 I'I.;t~MIT NO 78-1 liT, k;ll. / i 163 ' GL No 25 'F¥1'.F; F,I.I-~¢'Tt:IC AND O'1'1-1t2I{ LOGS RUN IES, GR-Sonic, De.n'si~y, Neutron,, Dipmeter 25 CASING }tECOI/D (Report all slrll~;s set i:', well) I 50 Set with P._iln~Jll:Jx. er ._--_ 'H-4O 333 J 26" J78~ ax c~a.qs c, 3-3/8" 7~ 196 94 7.2, 68 29 '(-~.~>, N~80 9032 32 N-80 SIZI.] TOP I51'I)~ t ItoTTo,xI {hlDI t PEI[F()ItA'I IONS OPEN TO P}iODUC~ON (Interval 8666-8695' with 4 JSPF 5045-5075' ~ith t JSPF · i i Cement retainers and cement plugs set above both perforated zones PRODUCTION ' .1, J 17-,1/2'{ 1710 .~-z al.nas lq, 6700' DV Tg91 8-1/2" to 'JlJ:. "'~';'×'; ':':'";;"' Clau~s G . size and number) ;::,. z%(_ll.). S,i()I', Fii.X ICI;[':. (.!,..II 7, 1' N*.ILJ:.".:.:. 1;1(' p~'l~ lr4'l ~21VAL (MDI 8558' ~mt ~~er ~0 ~_.~g_.m~_.~.3' 4985' .... p~g ' m DA'IE Flllq'l' I~IIkJDUCTION See DST inf~:mation l., tiuURS 'I ESTI2D -[CIIo'iE SIZE [I'IIOD'N l.'t)l{ '~;,XS; --51t'F. I,;1~-ill;l, J DxTJ Or T[Sr. . ~'I,OW. TUII[NG CASIN(; PIil';SSUI[E [CAI,CUI~A'I}ll) OI~HBL GA~---M('I". 32, t, 18T OF ATTA¢II.M£.N'I,"I / ,-m. .-× / Araarex Inc. ',~'Y /' /' ' '-/' "/(, 'rXTL~: --l.m_n~naga= ......... ,,..,.r,.:lqarci~ 29, 1978 SIGNED .__ ~Z-~ , . .-. . _ ........... · i i i *(See Jn~truction~ and Space~ [or AclditionaJ Data on Reverie Side) INSTRUCTIONS ~ ;.i)- 1:/) :;>;;- I:D ~neral: This form is designed for subn1ltting a complete and ccrr~ct I.\t"1I co.,.,p:etlon rE'¡::,ort .:"'r"'j Ic:) C~l ð" r y' pes 0 f I a n :J san cJ Ie ð s e S Ifl A I i) s k a , .....~ C' ;<-: ., Item: 16: Indicate which elevation is used as reference (-Nhe'e 110t o~hl'rl.""c:.e 5-h(h\.'r1) for GPprh r~~e.lSL:re' mer.ts g,ven In ether spr1ces on this forl11 ðnd in ðl1Y ,,!I.): \1::1f~:)I:.. ~" ':," g :.. c' ""' ~1) 'C (f.'~ ,~.... \. c ' t--~.._) Items 20, and 22:: If this well is completed for sepJrJtc pr,':L;cllr,n fr(1'" I"O'\.' th.lr1 art? ,,,r~'r"ðl l':)re (multiple cornpletlol1L so stale In ilem :0, LInd If) 11('''; '.'? ~)10''''' Ih,: p'C .h,( ::"1 in!uI. Ji, or In'e'v.IÎ:>, top(,:), borrom(s) and name (s) (if ðny) for only Ihe inler', ! rcpnrr~d in ¡I,.~rn 30 S~ h'~I! .1 se~)j~Jtc r~:)I);' (pÒJe¡ on this form, ader¡Udtely tdeñllflccJ, for (~ach ad\i;:IOfldl Ink: v,ll to be seper.3lely rorodl"~f2"-i, sho','\,', ing the dckJitlonal dcJla perllnenl 10 such Interval. \"",~ ...; "'''.,í 1,1."",\ " :."~ Itðm26: "Sack:. Cen1ent": Attached supplemental records for Ihi~ JIoeil r,houlj s.how the del.1ds. of ðny r."'ìJl- tiple stage cemenling and the Iccùlion of the cementing tool, Item 28: Submit a separate completion report on this form for each Interval 10 be separately procbc&d (See instruction for items 20 and 22 ùbove), ) D :.14, St;:.I:'IAIlY (II-' F(¡Il:\I:>.TI(),'~ TL"¡l:-i ::' (,l.l:!);ë~(; I~.î ¡':!(VAL TF_,,'n:n 1'1IE.'';'Sl!IlE [)ATA A.."'1J HEcoVf:HIf'_, OF OIL (;AS J5 l;EOLOGIC "^RKERS wATt:n Ar-;U l\IVn NA:\tE ST 8666-8696' \IEA::; D~'Tll "':'"? t '''[: \" r.~ -:- ::: r.:=-:; ¡ No. 1 - - PSA 8610' DST No. 2 - 8666-8696' - PSA 85191 IHP - 4734 psi IHP - 4546 psi IFP - 491 psi TO 1 hr. IFP - 174 psi Birch Hills 8635' FFP - 526 psi (No fluid or gas. FFP - 314 psi TO 30 min. to surface) Sterling 5030' FSIP - 4065 psi ---, '\\0 FSIP - 4054 psi IFP - 632 psi IFP - 349 psi FFP - 702 psi TO 2 hr. FFP - 1047 psi TO 29-1/4 hrs. FSIP - 4065 psi REC 1028' mud, muddy FSIP - 4054 psi No fluid, gas or V.'a ter and sand. mud to surface. FHP - 4664 psi FHP - 4511 psi REC 660' water rl1r ml1n ,- :Iii ('OICF: OAT:\, ^ l"r,\C1 I IHUF.F" DE..<;('HlPITION:,; OF LlTIIULUGY, ponOSlTY, FIIAl TUHF.s, APPARENT DIPS AND )~rE(~n:[) SIlO\~'$ 01" OIL.. (iAS on WA1'EH 856' muddy 'vater 8T No. 3 - 5045-5075' - P8A 4946' 300' muddy water IHP - 2718 psi wi slight gas IFP - 1525 psi 40' muddy 'vater FFP - ~~ TO 30 min. <¡¡cd wlsand F8IP - . P ~ .__._-~"?' IEP - 109 pp1 . (" REC 927' mud FFP - 21-crg-psi TO 24 hrs. 3708' muddy water FSIP - 2109 psi (gas cut) FHP ..:.. 2669 psi D February 9, .1979 Amarex, Inc. P. O. Box ~1678 Oklahoma City, Ok;lahoma 7310~1 Re- Moose Point Unit Agreement Moose Point Unit We.~l~l #,1 Lease Operation 77-,~163 Attention' R. L. Ri ch Land Department Gentlemen: Thank you for your .letter of January 30, ~1979. Our decision of August 3,t, .1978, p;laced the referenced we/1.1 on suspended status for the purpose of further testing. The suspension was approved subject to the requirement that the operator complete the re-entry and testing during the ~978-79 winter dri.l.ling season. This decision further provided that if the testing was not comp.leted, as required, the wel~ wound be plugged and abandoned. In our judgement, extension through the .t978-79 winter dri~ing season was responsive to your request for ample time to perform proposed formation testing; therefore, your January 30, .1979 request for extension of time is denied. By copy of this ?letter the Oi,1 and Gas Conservation Commission .is advised that the unit operator must complete the Moose Point Unit No. ;1 well as a producer or an abandoned wel~l by March 1t5, .1979. In accordance with section 9 of the referenced unit aoreement, the operator is required to commence the second unit.well within.6 months after the completion of Moose Point Unit No. l. Si'nee the six 1~<~mth period is during the summer and summer operations are not possib~ that area, the state wi,t.1 extend the time in which to commence t'he second well until the 11979-80 winter dri~lling season providing a.requ~ 10-J3 LH for extension is filed, accompanied by a firm commitment by the operator to drill a second well and also a rig commitment. The rig commitment need not specify.a particular date, but must reference the winter drilling season of 1979-80. This material must be filed at least thirty (30) days prior to the required commencement date which will be September 15, 1979. Sincerely, Ethel H. Nelson Leasing Manager cc' Hoyle H. Hamilton, Commissioner Oil and Gas Conservation Commission COMSERVATIOM December 19, 1978 Mr. Tho~as E. Kelly, Agent for Amorex, Inc. 700 'R' Street, Suite #2 Anchorage, Alaska 99501 Re: Amar~ Inc. Moose Point Unit 1~o. 1 Sec. I4, T91{, Rgw (SM) Dear To~: In checking the materials on the subject well submitted to the Division of Oil and Gam Co~ervation in compliance with 11AAC22.535, we find that washed and dried samples of ~he interval 7080' ~o 9300' have not, as yet, been submitted to the State. Samples covering the intervals 335' - 7080' and 9300' - 10,059' have been submitted. Pteame advise anticipated da~e of delivery of the samples from the missing interval. As a matter of interest you may wish to know that five sets of the interval 335' to 2520'; 4 sets of 2520' - 4710' and two sets of 4710' - 7080' were transmitted to the State. Perhaps ~on~e of these duplicate sets were intended for distrioutmo to other parties. Very truly yours, William Van Alen Petroleu~n Geologist THOMAS E. KELLY Consultant Earth Sciences April 24, 1978 State of Alaska Division of Oil and Gas 3001 Porcupine Drive Anchorage, Alaska 99501 Attention- Mr. Harry Kugler Ge ntl emen' Please acknowledge receipt of the core samples delivered this date from the Amarex Moose Point Unit #1 by signing one copy of this letter. Si ncerely, Thomas F. Kelly TEK/sp Enclosure Received this ~"'L// day of April, 1978 DANA RI, JlLDIN(~. SUITE 2 - 700 H STREET - ANCHORAGE, ALASKA 99501 PHONE 279-9589 DF~.A~~ OF ~TSTJ1L rC~TJRCES Division of Oil and Gas Conservation ~ril 21, 1978 Director, DO~C /~!~ -.Avarex, Moo~ Point L~it ~1 ~11 ~Ck~pex~o=icn This is a reply to your ~ dated April 17, 1978 ask/rig for the oerz]iticn of the ~ ~ ~. The ~ has been plug~ged and a %~ll~_ad /nst~lled on th.~ casinq, ac~ordi~ safe coml~tica. Amarex, Incorporated i~/~ lab IlO - P. O. Box 167E Oklahoma City, Oklahoma 73101 March 29, 1978 Ms. Ethel H. Nelson Land Management Officer Division of Minerals and Energy Management Department of Natural Resources State of Alaska 323 East Fourth Avenue Anchorage, Alaska 99501 Dear Ms. Nelson: Re: LO-77-163 Moose Point Unit No. 1 Under terms of the referenced unit agreement and approved plan of operations, conforming operations have been performed as detailed in the attached copy of the Sundry Notice filed with the Oil and Gas Conservation Committee. Since time did not permit adequate testing of the unit well due to the pending spring break-up, we respectively request this well and unit be held in a suspended status until more conclusive testing may be completed during the 1978-79 drilling season. Any required restoration of the drill site and the access route will be made on completion of operations. Yours% very truly, R. L. Rich Land Manager .ID,,i),!, .o.'[ Miner;z~s & En3?gY Mgt cc: Mr. Ed Barber Alaska Division of Lands Anch,:,ra.9e, THOMAS E. KELLY Consultant Earth Sciences April' 24, 1978 State of Alaska Division of Oil and Gas 3001 Porcupine Drive Anchorage, Alaska 99501 Attention' Mr. Harry Kugler Gentlemen-" · Please acknowledge receipt of the core samples delivered this date from the Amarex Moose Point Unit #1 by signing one copy of this letter. Sincerely, Thomas E. Kelly TEK/sp Enclosure Received this ~-~ day of April, 1978 / / n^,.,^ m,,, nl~,,m ~,lm: ~ . 700 H STREET - ANCHORAGE, ALASKA 99501 - PHONE 279-9589 DEPABS~5~r OF. ~%TUPAL ~ Division of Oil and Gas ~ation ~nril 21, 1978 Director, DOC~ J~'~/ . This is a ~=ply %o your msmo dated April 17, 1978 asking f~r the oc~ditic~ of ~ba abov~ named %4e~]i. , .. The ~ has been plugged and a %~llhead installed c~ ~e casing., according safe cc~aitic~o · : , uz-utJl~ Ik~ev. IU//6~ STATE of ALASKA TO: r O.K. Gilbreth, Director Pete Nelson, Acting Lsg. Division of Minerals & Energy DATE: April 17, 1978 FILENO.- Moose Point Work File TELEPHONE NO: SUBJECT: Moose Point Unit #1 Well We plan to approve suspension of drilling operations under Section 18(c) of the subject unit agreement. Will you confirm that the well was left in a satisfactory condition to be considered suspended? ~-IW/' !/ Amarex, Inc. P. O. Box 1678 Oklahoma City, Oklahoma 73101 Mr. O. K. Gilbreth Division of Oil and Gas Conservation Department of Natural Resources State of Alaska 3001 Porcupine Drive Anchorage, Alaska 99501 Dear Mr. Gilbreth: Completion Report Moose Point Unit No. 1 March 29, 1978 Attached is your Form P-7 in duplicate for completion of drilling the subject exploratory Well. Final prints of the open hole logs will be forwarded to your office as soon as they are available. As shown by the attached form, two separate horizons were tested and plugs subsequently set above them in 7 inch production casing. In addition, a cement plug was placed from 55-140' MD, diesel fluid to surface and a wellhead with appropriate surface valving was set. As discussed by Amoco Production Company's G. R. McGregor and Lonnie Smith, on March 14, 1978; we preferred not to set a surface abandonment marker at this time due to our intent to conduct further tests of the Birch Hills sands during the 1978-79 drilling season and we, therefore, requested and received permission to leave the well in a suspended status. As you are aware, the pending break-up and potential road problems necessitated suspending operations early this month, however, analysis of test data indicates additional testing may be required to fully evaluate the well. Any required restoration of the drill site and access road will be made upon completion of operations. Yours~)truly, R. L. Rich / Land Manager I~'or m P--7 - SUBMIT IN DU~,,,CATE* STATE OF ALASKA <Se,~oth~r m- s(ructions on reverse side,~ OIL AND GAS CONSERVATION COMMITTEE WELL cOMPLETION OR RECOMPLETION REPORT AND LOG* [ ii la. TYPE OF WELL: om ~ u~s ~ o~w ~ Other Sus~mndmd Exnlora1 W~LL WELL . ~ ~ b. TYP~ OF COMPL~ON: e~" ~ ~r~' ~ Oth~ SusCended Exploral 2. NAME OF OPERATOR Amarex, Inc. 3. *~DRESS OF OPERATOR P. O. BpX 1678. Oklahoma City~ Oklahoma 73i01 LOCATION OF WELL (Report loc~n clearly and in accordance with any State requirements)* ~t~u~a~ 2511.5~ FNL, 2124~ FEL, Sec. 14, ~gN, Rgw, S.~. At top prod. interval repor(ed below Same At total depth Same 5. APl NUlVlI~I~ICAL CODE 50-133-20312 6. LEASE DIRSIGNATiON A. ND SERIAL NO. ADL 59358 ~)~3~INDIA_N, AJ~L, OTT~E OR TRIBE NA1Vi~ ~)~IT,FA3LM OR LEASE NAME ~oose Point Unit 9. WELL NO. 1 10. FII~LD AND rOOk, OR WILDCAT Wildcat 11. SEC., T., R., M., (BOTTOM HOLE OI~J~CTIVE) Sec. 14, T9N~ R9W~ S.M. 12. P~RRVIIT NO. 78-1 1-26-78 3-1-78 [ 3-15-78 Susp. 22' RKB , ~ 163' GL /-IOW M. A_NY* ROTARY TOOLS CABI,E T00I,~ 10,058' MD [ 55' MD 0- TD 22. PRODUCING INTE1RVAL(S), OF' THIS COMI:~ETIO~I~TOP, BOTTOM, I~A2ViE (MD AND 'riD)* 23. $VAS DIRECTIONAL ) SURVEY MADE None - plugged back to 55' MD. t No 24.TYPE ELECTRIC AND OTH~ LOGS RUN IES, GR-Sonic, De, nsit,~, Neutron, Dipmeter 22. CA, SI~NIG SIZE 30" 20" 13-3/8" , 7I! CASIIWG RECO1R~D (Report all strings set in well) %VEIGHT, LB/FT, [! "GiR~LDE DEPTH SET (1V/X)) HOLE S~E C~%fLNTING RECO}~ AMOUNT PULLED 94 H-40 J 333. 26" [78] ax Clasg G 72. 68 ~-gO~] 9516 17~1/?'1, !.710 29' ',{~,N480 ~032 12;1/~"d° 6700' DV Tool 28. PErOrATIONS OP~ TO P~O~O~ ~ngerval, s~ze and number) g~. ~CID, Si~OT, F2[~I'GRE, C~[ENT 8~UE2Z~, BTC. ' with 4 JSPF Cement retainers D~i INT~V~ (MD) ] AMOUNF ~'~D }lIND OF MATE~gAL U$~ 8666-8695 5045-5075' with 4 JSPF and cement plugs 8558' Cmt retaidemw/50 sx set above both 4985' Cmt retai~er -Cmt. squeezed w/85 perforated zones ~ plug on_~top..of, r_~ainer .to..490~~ ~ODU~IO~ DATE FIRST PRODUCTION I:~ODUCTION ME'iHO'D (Flowfl~.g, gas lift, pumping--size and type of pump) [WELL STATUS (Producing or [ ~nut-in) See DST info cmation : _ I Suspended DATZ OF T~ST, II-iOLVRS TESTED '[CHO!<E SiZE [PROD'N FOR OIL--BEL. ~AS--~ICF. WATEII--BBL. - [ GAS-OIL F..%TIO · DISPOSITION OF GAS (Sold, used 1~r ~uel, vented, etc.) ' ' ..... ' , ... .... (, ,,).~ ~,:)r~;~.;~-~(,,~(~F --~8.'I hereb~ cert~y tha~ t~ forego[~ and attac~d Information le complete and correct a~ determined from all-available ree6~'' <~./ ,...//'. <' /' <, ~arex Inc, SIGNED /~ / ~v~-, J'-,:~/:~ ~ Land Manager mATEMarch 29, , ,, ·(See [ns~cfio~ ~md S~ces [o~ Addifion~[ 9~t~ on Rever~e S~de) INSTRUCTIONS C,-,eneral: This form ~s aes~gned for subr.n~tting a complete ar~J c~.rrec~ ..,.e!l co~'~p~et,otn ref, e~t a~J !c'.'g all types of tanJs arid ]eases ~r~ Alaska. item: 16: Indicate ,~h,ch elevation is used as referer~ce (whe, e r~ot ott~er~;~e sba,yr,1 for depth n~easure- ments given ~n ether s[),]ces on this for~ and tn ar~y art.l: Items 20, ~nd 22:: If tJ1~s well is compJete~J for separate [)r :fuct~.Dn ~ro"~ f'~orc t}~g[~ O[~e :~t('r~aJ (multiple complet~or~) so slate ~n iter~ 20, and i~ ~te',~ 72 sqo:., thc p, cJt,(::'~l ~ntcr~aJ. o, top(s), boltof~(s) and ~ame (s) (~f any) for only lhe ~ntcr.~ ,'. re~=r~d ~ ,t,.t~ ~O $~b,q,t a separate report (page) on th~s form. a~Je~'.;.]teJy ~cJefltific~J, for each a~cJ:t,or:d~ z,~te:vaJ tg be seperately prod~,ce-t, show- lng the 8~]~t~onal data pertinent to such ~nterv81. Item26: "Sacks Cen~ent": Attached supplemental records for th~s ~eJJ ~hou~J show the details of any tiple stage cemont~ng and the Jocal[on of the cementing tool. Item 28: Submit a separate complelion re~rt on this form for e~ch i~lervaJ to be separately produc~. (~e inslruction for ite~r,s 20 and 22 above). · I1 .... 34. SU,MMAI~.Y ()F I.'J)I{MATIt)N 'I'I:2-;'1'.~i INt I.UI)IN(; IN'IFUtVAL 'I'F~q'I'F2I) I~H~qL;IIE DATA ~N~ lJE('()V~LIIIF.~ (}F' ()1I. NAME _ XI~AS t~'~t ~1'~ vEnT D~ _ )ST So. 1 - 8666-8696~ - PSA 8610~ DST No. 2 - 8666-8696' - ~SA 8519~ IHP - ~73~ ps5 IHP - ~5~6 ps5 IFp - 691 ps~ TO 1 hr. IFF - 17~ ps5 BSrch HSlls 8635~ FF~ - 526 ps5 (So fluSd or gas FF~ - 31~ ps5 TO 30 mSn. ro surface) 3terlSng 5030 FSIP - ~065 ps~ FSZP - ~05~ ps5 IFF - 632 ps~ IFP - 3~9 ps~ FFP - 702 ps5 TO 2 hr. FFP - 10~7 ps5 TO 29-1/~ hrs. FSIP - ~065 ps5 REC 1028~ mud, muddy FStP - ~05~ ps5 No fluSd, gas or ~arer and sand. mud ro surface. F~ - ~66~ ps~ FHP - ~511 ps5 RECc~]r660'm~d ~arer , 38 ('OIIE DATA. AI'I'ACll BRIEF D~('ItlPI~ONS OF LITIlOLOGY. POROSITY. FIIAC~IIF~%. APP~NT DIPS ANII llE'rE(-l'El) NIIi)X['~ O~' ()Il.. (iAS O!1 , ,, 856' muddy water DST. No. 3 - 5045-5075' - PSA 4946' 300' muddy water IHP - 2718 ps~ w/slight gas IFP - 1525 ps~ 40' muddy water FFP - 2085 psi TO 30 min. w/sand FSIP - 2109. psi IFP - 2109 psi REC 927~ mud FFP - 2109 ps~ T0 24 hrs. 3708' muddy water FSIP - 2109 ps~ (gas cut) FHP = 2669 psi (AMOCO) -' Amoco Production Comp[,'-- ENGINEERING CHART __.~'X,~'/,4T:/o/v' /& 3" ff-'/.- ~ /~,.~'/<% LOCArW,~..:-2.~-/1. ~. 'FNL ). 5dc iL/ ..... ~ - ~ i .... i ~ ~.. i ,, ................................................................................... } ..... i SHEET NO, " FILE · OF APPN ,¥ 7 81sx C SA z .~t~ X J7/0 ~,¥ r Form 1 (~403 REV. 1-10~73 Submit "Intentions" In Triplicate & "Subsequent Reports" In Duplicate STATE OF ALASKA OIL AND GAS CONSERVATION COMMITTEE SUNDRY NOTICES AND REPORTS ON WELLS (Do not use this form for proposals to drill or to deepen Use "APPLICATION FOR PERMIT--" for such 13roposals.) " Ow'~LLLOWELLGAS FI OTHER Exploratory 2. NAME OF OPERATOR Amarex, Inc. [ ADDRESS OF OPERATOR P.O. Box 167 E, Oklahoma City, Oklahoma 73101 4. LOCATION OF WELL At surface 2511o5 F E L, 21 24 FEZ 13. ELEVATIONS (Show whether DF, RT, GR, etc.) 163 grd, 185 D.F. 14. Check Appropriate Box To Indicate Nature of Notice, Re 5. APl NUMERICAL CODE 50-133-2031 6. LEASE DESIGNATION AND SERIAL NO. ADL-59398 7. IF INDIAN, ALLOTTEE OR.TRIBE NAME 8. UNIT, FARM OR LEASE NAME Moose Point Unit 9. WELL NO. #1 I0. FIELD AND POOL, OR WILDCAT Wildcat 11. SEC., T., R., M., (BOTTOM HOLE OBJECTIVE) Section 14, T9N, R9W, SM 12. PERMIT NO. 7~'-'1 )crt, or Other Data NOTICE OF INTENTION TO.' FRACTURE TREAT . MULTIPLE COMPLETE SHOOT OR ACIDIZE ABANDON* REPAIR WELL CHANGE PLANS (Other) SUBSEQUENt REPORT Of: WATER SHUT-OFF ~ REPAIRING WELL FRACTURE TREATMENT ALTERING CASING SHOOTING OR ACIDIZING ABANDONMENT* (Other) (NOTE: Report results of multiple completion on Well Completion or Recompletion Report and Log form.) 15. DESCRIBE PROPOSED OR COMPLETED OPERATIONS (Clearly state all Dertlnent details, and give pertinent dates, Including estimated date of starting any proposed wOrk. T.D. 10,058 3/1/78 Ran logs, prepared to run 7" production, string and attempt completion of Birch Hill sd (8664-8696) Plan to run 8200 ft., 29#, N-80, LT&C & 800 feet 32#, N-80, LT&C. Cement with approximately 500 SX or sufficient to bring cement above 6300 feet. Bottom casing shoe~9,000 feet. Program communicated to Hoyle Hamilton, D.0.G. and verbal approval given 1900, 3/3/78. (This S~3ace-~'~r State office use) CONDITIONS ~A~P~VAL, FF ANY: Agent for Amarex, Inc. ~ DATE Approved Copy Returned See Instructions On Reverse Side Form No. P-4 REV. 3-1-70 SUBMIT IN DUPLICATE STAT E 0 F A LAS KA OIL AND GAS CONSERVATION COMMITTEE MONTHLY REPORT OF DRILLING AND WORKOVER OPERATIONS 5. API NUMERICAL CODE 50-133-20312 6. LEASE DESIGNATION AND SERIAL NO. ADL-59398 1. 7. IF INDIAN'ALOTTEE OR TRIBE NAME OIL [] GAS [] Exploratory WELL WELL OTHER 2. NAME OF OPERATOR 8. UNIT FARM OR LEASE NAME Amarex, Inc. Moose Point Unit 3. ADDRESS OF OPERATOR 9. WELL NO. P.O. Box 167 E, Oklahoma City, Oklahoma 73101 #1 4. LOCATION OF WELL 2511 5 F N L, 2124 FEZ 10. FIELD AND POOL, OR WILDCAT Wildcat 11. SEC. T. R. M. (BOTTOM HOLE OBJECTIVE) Section lq., T9N, R9W, SM 12. PERMIT NO. 7E-1 13.REPORT TOTAL DEPTH AT END OF MONTH, CHANGES IN HOLE SIZE, CASING AND CEMENTING JOBS INCLUDING DEPTH SET AND VOLUMES USED~ PERFORATIONS, TESTS AND RESULTS FISHING JOBS JUNK IN HOLE AND SIDE-TRACKED HOLE AND ANY OTHER SIGNIFICANT CHANGES IN HOLE CONDITIONS. T.D. 19,058 (driller) Drilled to 0100, 3/1/71 C.O. and preparation to run logs. 13-3/8" C.S.g set to 2518 feet 12-1/4" hole to 6700 feet 8-1/2" hole to T.D. 14. s;Gh;~;~rt' y~ a~ f~.~egoing~u, e a~ t TITLEAgent for Amarex DATE this form is req~i~r~eta calendar month, regardless of the status of operations, and must be filed in duplicate with the oil and gas conservati~he 15th of the succeeding month,unless otherwise directed. E~AR~ OF NA~ RESOU~C~ Divisic~ of Oil and Gas Conservation To the Files March 3, 1978 ~ Kelley ca~ ~s date %o report that Dm~3rex would run pipe at the ~ Point U. #1 w~ll. I told ~ that w~ ~ not witness the setting of ~ casing or ~ subsequent test~ of the w~ll. There. ~ marginal g~g sands oorrelating with the Birch Hill w~ll and Tom was skepti~ if water-free g~s could be proc%aced. Form 10-403 REV. 1-10~73 Submit "1 ntentions" in Triplicate & "Subsequent Reports" in Duplicate STATE OF ALASKA OIL AND GAS CONSERVATION COMMITTEE SUNDRY NOTICES AND REPORTS ON WELLS (Do not use this form for proposals to drill or to deepen Use "APPLICATION FOR PERMIT--" for such proposals.) 2. NAME OF OPERATOR 4. LOCATION OF WELL At su trace 13. ELEVATIONS (Show whether DF, RT, GR, etc.) CheCk Appropriate Box To Indicate Nature of Notice, Re 5. APl NUMERICAL CODE 6. LEASE DESIGNATION AND SERIAL NO. 7. IF INDIAN, ALLOTTEE OR TRIBE NAME 8. UNIT, FARM OR LEASE NAME 9. WELL NO, / 10. FIELD AND POgL, OR WILDCAT 11. SEC., T., R., M., (BOTTOM HOLE OBJECTIVE) 12, PERMIT NO. .- / ~ort, or Other Data NOTICE OF INTENTION TO.' TEST WATER SHUT-OFF L--.-J FRACTURE TREAT SHOOT OR ACIDIZE REPAIR WELL (Other) PULL OR ALTER CASING MULTIPLE COMPLETE ABANDON* CHANGE PLANS SUBSEQUENT REPORT OF: WATER SHUT-OFF E~ REPAIRING WELL FRACTURE TREATMENT~ ALTERING CASING SHOOTING OR ACIDIZlNG ABANDONMENT* (Other) (NOTE: Report results of multiple completion on Well Completion or Recompletion RepOrt and Log form.) 15. DESCRIBE PROPOSED OR COMPLETED OPERATIONS (Clearly state all pertinent details, and give pertinent dates, including estimated date of starting any proposed work. / Or Od~O (_,,/ RECEIVED FEB ~ 4 '~978 A~l(ihorage Form 10-403 ~ Submit "Intentions" In Triplicate REV. 1-10-73 & "Subsequent Reports" in Duplicate STATE OF ALASKA OIL AND GAS CONSERVATION COMMITTEE SUNDRY NOTICES AND REPORTS ON WELLS (Do not use this form for proposals to drill or to deepen Use "APPLICATION FOR PERMIT--" for SUch proposals.) ~_ NAME/~F OPERATOR __L~. ¢, 3. ADDRESS OF OPERATOR ~. ~O~ION OF WE~ At surface ~1/, ~ ~ ~ ~ 13. ELEVATIONS (Show whether DF, RT, GR, etc.) Check ~ppropriat~ Box To Indio~te N~tum of Noti~, Re 5. APl NUMERICAL CODE ,.S-o -' 6. LEASE DESIGNATION AND SERIAL NO. APL 7. IF INDIAN, ALLOTTEE OR TRIBE NAME ;8.~/~ ~'~UNIT' FARM ORp0 I ~.3LEASE NAMEr 9. WELL NO. / 10. FIELD ANp POOL, OR WILDCAT 11. SEC., T., R., M., (BOTTOM HOLE OBJECTIVE) 7-? 12. PERMIT NO. )ort, or Other Data NOTICE OF INTENTION TO*' FRACTURE TREAT ~ MULTIPLE COMPLETE SHOOT OR ACIDIZE ABANDON* ' REPAIR WELL CHANGE PLANS (Other) SUBSEQUENT REPORT OF: WATER SHUT-OFF [~ REPAI RING WELL FRACTURE TREATMENTH ALTERING CASING SHOOTING ORACIDIZING ABANDONMENT* (Other) (NOTE: Report results of multiple completion on Well Completion or Recompletion Report and Log form.) 15. DESCRIBE PROPOSED OR COMPLETED OPERATIONS (Clearly state all pertinent details, and give pertinent dates, Including estimated date of starting any proposed work. · (This spa~r State of~e u.) ~ ) ~b ~ . . CONDiTiONS O~PPROVAL~ ~Y :~ ~ See Instructions On Reverse Side Form No. P-4 REV. 3-1-70 SUBMIT IN DUPLICATE STATE OF ALASKA OIL AND GAS CONSERVATION COMMITTEE MONTHLY REPORT OF DRILLING AND WORKOVER OPERATIONS 5. APl NUMERICAL CODE 50-1 33-20312 6. LEASE DESIGNATION AND SERIAL NO. ADL- 59398 1. 7. IF INDIAN'ALOTTEE OR TRIBE NAME OIL [~] GAS[] Wi 1 dcat WELL WELL OTHER 2. NAME OF OPERATOR 8.UNIT FARM OR LEASE NAME Amarex, Inc. o-~~% ~5-~f Moose Point 73101 3. ADDRESS OF OPERATOR P.O. Box 1678, Oklahoma City, OklahOma 4. LOCATION OF WELL 2511.5 FNL, 2124 FEL 9. WELL NO. #1 10. FIELD AND POOL, OR WILDCAT Wi 1 dcat 11. SEC. T. R. M. (BOTTOM HOLE OBJECTIVE) Sec. 14, T9N, R9W, SM 12. PERMIT NO. 78-1 13. REPORT TOTAL DEPTH AT END OF MONTH, CHANGES IN HOLE SIZE, CASING AND CEMENTING JOBS INCLUDING DEPTH SET AND VOLUMES USED~ PERFORATIONS, TESTS AND RESULTS FISHING JOBS JUNK IN HOLE AND SIDE-TRACKED HOLE AND ANY OTHER SIGNIFICANT CHANGES IN HOLE CONDITIONS. T. D. 1/31/78 - 2525 ft. Drove 30" conductor to 50 ft. Set 20" 90# H-40 ST&C conductor @ 332.61 ft. cemented with 300 sx, class G neat , , , , 4'81 sx, Class G wi th 2% CaC1. Returns to surface. set 13-3/8", 72#, N-80; 68#, K-55 surface csg. @ 2516 ft. Cemented to surface with 1710 sx (1260 Cl. G with 2.5% gel, 200 sx Cl. G neat, 250 sx cl. G with 2% CaC1); est. 50 sx circulated out; job complete 1900, 1131178. Nippling-up prep. to drill out 2/1/78. ~ [~7~~ · and c e t TITLE Agent for Amarex DATE NO the oil ahd gas conservation committ~ by--the 1§th of the succeeding month,unless otherwise directad. 10-J3LH JAY S. HAMMOND, ~OVERNOR DEPARTMENT OF NATURAL RESOI~RCES MINERALS AND ENERGY MANAGEMENT 323 E. 4TH AV[NU[-ANCHORA~[ 9950! ~ , January 3, 1978 Re: LO/77-163 Moose Point Unit #1 Amarex, Inc. c/o Thomas E. Kelly Dana Bldg., Suite 2 700 H Street Anchorage, Ak. 99501 Gentlemen: The referenced lease operation is hereby approved subject to the following stipulations: 1) The fuel dike area of 125% capacity, as stipulated in Item 3(b) be impermeably lined to retain any fuel spillage within the diked area. 2) If the well is of non-commercial value, the drill site and any other area where natural vegetation has either been stripped off or destroyed, be scarified and fertilized to induce natural regrowth. 3) That permission must be obtained in writing from Nikiski Pipeline Co. and Phillips Petroleum Company for the utilization of portions of their right-of-way for a winter access road commencing at the Captain Cook State Park and running northeasterly to Section 14, T9N, R9W, S.M. 4) That a material sale, ADL 200271, must be obtained by the permittee to facilitate the removal of material for the construction of the access road and drilling pad. It appears that there is sufficient material on the site for pad construction; however, in the event that sufficient material is not available, then this contract will cover any needed materials for pad and road construction. An;arex, Inc. January 3, 1978 Pa.qe '2 5) Any water well drilled will be drilled after applying for a water use permit from the Southcentral District Office, 3327 Fairbanks Street, Anchorage, Ak. Upon completion of the water well, a water log ~ill be submitted to that office. 6) That the reserve pit be lined with a sealing layer of betonite (gel) or the equivalent to prevent leakage. 7) Cher~ical toilet wastes must be dispcsedof in a suitable "high-dry" area at least 100 feet from any surface waters and 200 feet fro.m any water well. 8) A completion report shall be submitted within 15 days u?on termination of permit activities. This report shall contain the following: a. Actual routes of travel, and actual location of ali. camps depicted on a USGS top map. b. Ail additions to original application. c. Statement of cleanup activities. d. Time spent in each cam!,~site. e. _~..~.ethods of disposal of garbage and other camp debris. Sincerely, Ethel H. Nelson Land ~'{ana~ement Officer THOMAS E. KELLY Consultant Earth Sciences December 13, 1977 State of Alaska ~ Department of Natu)~ Resources Division of Min~ls and Energy Management 323 East 4th~enue Anchorag~/~d aska 99501 _ Attent/~<~n: Ms. Ethel Nelson Re: Proposed Moose Point Unit #1 Plan of Operations Gentlemen- On behalf of Amarex, Inc, operator for the proposed Moose Point Unit #1 well, I am enclosing herewith a Plan of Operations together with supporting exhibits. The Brinkerhoff rig no. 43 is now available to drill the initial test well at Moose Point and it is Amarex's intention to improve the ~Phillips pipeline right-of-way to provide access to the proposed location as soon as possible since weather conditions are favorable for the planned winter operations. We, therefore, respectfully request your timely review of the Plan of Operations as we would like to proceed' with preparation 'of the drillsite as soon as the ROW is satisfactory for travel. Both Phillips and Tesoro have been contacted regarding use of the ROW and necessary precautions will be taken to insure the integrity of the gasline and Tesoro products line. ., A surveyed location plat will be furnished in the near future. I would like to call your attention to the fact that an onsite inspection of the proposed location indicates that Otter Creek is approximately 500 feet distance from the location; however, the topo- graphic quadrangle and the location plan, which were'prepared from the DANA BUILDING, SUITE 2 - 700 H sTREET ANCHORAGE, ALASKA 99501 PHONE 279-9589 State of Alaska December 13, 1977 Page Two topo map, scales less than 500 ft. between wellsite and creek bank. The inaccuracy is probably due to the scale used. The copy of the aerial photo (Exhibit IV) more clearly reflects the location on the ridge described in the Plan of Operations. If you have any questions please contact this office. Thomas E. Kelly ~ ~ Agent for Amarex, Inc~ TEK/sp Enclosures Acknowledged and Received this day of December, 1977 By cc' Mr. Bill Wackerly, Amarex ADF&G ADEQ ~/ DOG~ DMEM - SC District PLAN OF OPERATIONS · AMAREX, I NC. Moose Point Unit (proposed) State Lease ADL 59358 Wellsite and Geologic Setting The proposed surface location for-the Moose Point Unit #1 well is on timbered uplands of the north Kenai Peninsula approximatley 5 miles north of Swanson River field. Vegetation in the immediate area consists of black spruce, birch and cottonwood. Poorly drained marshland supports stunted spruce and muskeg and occupies about 50 percent of the drillsite section. The proposed drillsite occupies a northeast trending topographic ridge that is about 25 feet higher than the creek valley to the north. A location approximately 300 feet long and 200 feet wide will accommodate the drilling rig, associated drilling equipment, drilling mud and chemicals, and the drilling waste pit (see Exhibit I). All trees and brush cleared from the location will be disposed of in the sump upon completion of drilling operations as part of the required cleanup. The right-of-way of the Phillips gas pipeline and Tesoro products line will serve as primary access to the location from the end of the north Kenai road. Less than 500 feet of new access road into the drillsite is anticipated. Said access road will consist of a gravel surfaced road at approximate ground level (125 feet). Sufficient sand and gravel is believed to be in place on the lease. A gravel sale has been requested and currently is being advertised in the event that additional gravel is necessary to construct the drillpad. Foundation material protection and rig support will be provided by heavy mil plastic sheeting and board mats. 2. Location Access The pipeline ROW extends from the terminus of the north Kenai road in Section 3, T8N, RlOW,~approximately 6 miles southwest of the proposed location. The end of the north Kenai road is 22 miles from the city of Kenai. Five to seven days construction time for the access road and site preparation is anticipated. 3. Method of Supply (a) Time of Operations: The well program is a winter type operation becasue the primary access is the pipeline ROW which is not suitable for travel except when the ground is sufficiently frozen. All materials and supplies will be trucked from Anchorage, Kenai or Soldatna. ~~ (b) Fuel Requirements- Fuel will be transported by truck tanker ~ from Kenai. Fuel storage on the location will be in steel tanks properly surrounded by a ring dike with 125 percent capacity of the fuel containers. 4. Water Supply Rig water will be provided either by hauling by truck tanker from the nearest available source or from a water well drilled on location. 5. Support Personnel Rig crews and supervisory personnel will commute from Kenai or Soldatna. No camp facilities are contemplated. Air support will occasionally be provided by helicopter. No landing strip for fixed wing aircraft is necessary. 6. Miscellaneous Drilling Items (a) The waste pit will be located and. constructed to prevent the possibility of contamination of the surrounding terrain or drainages. The waste pit will be lined with heavy mil visquene. On completion of drilling activities the waste pit will be filled and leveled. (b) Sanitary facilities at the drilling rig will be chemical toilets. Waste disposal will be in accordance with Borough health requirements. (c) The only significant drainage is Otter Creek about 500 feet from the location. A ring dike will encircle the location and be constructed in such a manner to protect the creek from any accidental discharge of fluids from drilling operations. 7. Other Construction on the Drillsite The subject well is exploratory in nature. Only in the event of commercial discovery will additional plans for development and surface handling of production be necessary at-which time additional plans will be submitted. 8. General Comments The operations contemplated at Moose Point are far less complex than at a remote site elsewhere in the Cook Inlet basin. Exploratory drilling has occurred previously at Birch Hill about 1.5 miles southeast of the proposed location. Birch Hill is a one well shut-in gas field. The proposed operations will not result in any environmental disruption. All solid waste will be collected and removed to the sanitary fill in Kenai. Degradeable materials (paper, etc) will be buried in the sump during the cleanup operations. 9. Testing Any required testing will be accomplished using approved industry techniques. The well will be a medium depth (10,000 ft. +) dry gas test and no potential' oil reservoirs will be encountered during drilling. Gas flow testing in the event of a discovery, will be to the atmosphere through approved flare equipment. 10. Conting. ency Plan The operator shall maintain on hand at all times absorbent materials for controlling any accidential discharge of fuel or lubricants. Since there is sufficient geological knowledge in the area to predetermine that no liquid hydroCarbons will be encountered in drilling, a oil spill prevention control and counter-measure plan that is required in other areas may not be appropriate in this instance. However, if the Federal or State agencies require same it shall be submitted prior to commencement of drilling operations. ll. Final Reports A completion report shall be filed with the Department within fifteen days after completion of operations. Attachments: Exhibit I - Drillsite Plot Plan Exhibit II - Proposed Location Exhibit III - Topographic Map showing Route of Access Exhibit IV - Copy of Aerial Photo Showing Access Route ACCESS ROAD Gl Minimum -- {Z WELL ! Minimum 200' ~1 Minimum [ I RIG I AREA i Reserve Pit Minimum 5~000 Bbls, SECTION A- A' A 7J/IX/J/X/l///,~' '/"//~- .... /////////////////////////////////,,4 ////L__.~_~////x/~ ='. ~'"-r AI t .... I' .......... w.. c..a, ?,'"~-/"/77E-/777~, "~' ~;'"~,~,,]_ Drainage Toward Deep Drain Line to / Reserve Pit Reserve Pit Slope = I" per 50' AMAREX INC. MOOSE POINT UNIT No. I DRILL SITE PLOT PLAN _ DRAWN BY:SCALE: A M S I" = 60' EXHIBIT' _ CHECKED BY;T. E.K. DATE: Dec. 1977 '1- AMAREX, INC. MOOSE POI NT UNIT No. I PROPOSED LOCATION DRAWN BYt AMS SCALE; 2": I-mile EXHIBIT: CHECKED BY: T. E.K. OATE: Dec. 1977 Tr , as operator or at;t. ttt or ~ipl)rt)w,d a~; t~l)(,vatof i[~ ;'o,~:tltleral ll)l~ t~l b,.i,~l; p~,~:mltts.d I~ lur.ish thJ~i I,o,wl Irt lieu of the lessees asrees anti by thest, i)re.svnt.,; dot.;; hi, rel)? I~in,I llim:;eil its lull'Ill on bt, hall .f each le~f;ee all though he were the lessee. G. The prh~cipal m~d surety agree that Lite neglect or ii~relne~lra.ce of th~, lesnor In enlorclng against the lessee~ of such lessor, the payment at rentals -r r.yaltlv~ or the performance of any other covenant, condition, of agreement o[ the leases shall n.[ in any why release the prl.cipal and ourety .r either of them from any liability undter this bo~ld. H, The principal and surety agr<*e ti,at In the ,,vt, hi' al a~ty delault under tit(. le~s8es the lessor may coherence a[iti prosecute any claim, suit, action, either of them without the necessity of iai.lug the NOW'TtlEREFORE~ if said principal shall tn all respects faithfully comply with all at the provisions of the leases referred to hereinabove, then the above obligatio,~ are to be void; otherwise, to remain In full force and effect. Dated this__ 28th day ot December , 19 77 ANY Wanda Boyd, ACCorney-±n-Fa¢C Page Two H&RTFORD ACCIDENT AHD INDEMNITY COMPANY Hartford, Connecticut POWER OF ATTORNEY Know all men by these Presents, That the HARTFORD ACCIDENT AND INDEMNITY COM- PANY, a corporation duly organized under the laws of the State of Connecticut, and having its principal office in the City of Hartford, County of Hartford, State of Connecticut, does hereby make, constitute and appoint A. J. OLSSON, GERALD M. SMITH, THOMAS A. MAC KENZIE, HOYT H. WYATT, ANN THOMPSON, WAN-DA BOYD, STUART J. KANE, and J. L. LANGFORD, of HOUSTON, TEXAS, its true and lawful Attorney(s)-in-Fact, with full power and authority to each of said Attorney(s)-in-Fact, in their separate capacity if more than one. is named above, to sign, execute and acknowledge any and alt bonds and undertakings and other writings obligatory in the nature thereof on behalf of the company in its business of guaranteeing the fidelity of persons holding places of public or private trust; guaranteeing the performance of contracts other than insurance poli- cies; guaranteeing the performance of insurance contracts where surety bonds are accepted by states and municipal- ,'ities, and executing or guaranteeing bonds and undertakings required or permitted in all actions or proceedings or by law allowed, and to bind the HARTFORD ACCIDENT AND INDEMNITY COMPANY thereby as fully and to the same extent as if such bonds and undertakings and other writings obligatory in the nature thereof were signed by an Executive Officer of the HARTFORD ACCIDENT AND INDEMNITY COMPANY and sealed and attested by one other of such Officers,. and .' hereby ratifies and confirms all that its said Attorney(s)-in-Fact may do in pursuance hereof. This power of'attorney is granted by and under authority of the following provisions: (1) By-Laws adopted by the Stockholders of the HARTFORD ACCIDENT AND INDEMNITY COMPANY at a meet- ing duly called and held on the 10th day of February, 1943. ARTICLE IV SECTION 8. The President or any Vice-President, acting with any Secretary or Assistant Secretary, shall have power and authority to appoint, for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, one or more Resident Vice-Presidents, Resident Assistant Secretaries and Attorneys-in-Fact and at any time to remove any such Resident Vice-President, Resident Assis- tant Secretary, or Attorney-in-Fact, and revoke the power and authority given to him. SECTION 11. Attorneys-in-Fact shall have power and authority, subject to the terms and limitations of the power of attorney issued to them, to execute and deliver on behalf of the Company and to attach the seal of the Company thereto any and all bonds and undertakings, and other writings obligatory in the nature thereof, and any such instrument executed by any such Attorney-in-Fact shall be as binding upon the Company as if signed by an Executive Officer and sealed and attested by one other of such Officers. (2) Excerpt from the Minutes of a meeting of the Board of Director's of the HARTFORD ACCIDENT AND INDEM- NITY COMPANY duly called and held on the 11th day of June, 1976: RESOLVED: Robert N. H. Sener, Assistant Vice-President and Thomas F. Delaney, Assistant Vice-President, shall each have as long as he holds such office the same power as any Vice-President under Sections 6, 7 and 8 of Article IV of the By-Laws of the Company. This power of attorney is signed and sealed by facsimile under and by the authority of the following Resolution adopted by the Directors of the HARTFORD ACCIDENT AND INDEMNITY COMPANY at a meeting duly called and held on the 6th day of August, t976. RESOLVED, That, whereas Robert N. H. Sener, Assistant Vice-President and Thomas F. Delaney, Assistant Vice-President, acting with any Secretary or Assistant Secretary, each have the power and authority, as long as he holds such office, to appoint by a power of attorney, for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, one or more Resident Vice-Presi- dents, Assistant Secretaries and Attorneys-in-Fact; ;-'- Now, therefore, the signatures of such Officers and the seal of the Company may be affixed to any such power of attorney or to any certificate relating thereto by facsimile, and any such power of attorney or certificate bearing such facsimile signatures or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by facsimile signatures and facsimile seal shall be valid and binding upon the Company in the future with respect to any bond or undertaking to which it is attached. In Witness Whereof, the HARTFORD ACCIDENT AND INDEMNITY COMPANY has caused these presents to be signed by its Assistant Vice-President, and its corporate seal to be hereto affixed, duly attested by its Secretary, this 9th day of August, 1976. Attest: Douglas H. Geer, Secretary . STATE OF, CONNECTICUT, I ss. COUNTY OF HARTFORD, t HARTFORD ACCIDENT AND INDEMNITY COMPANY Thomas F. Delaney Assistant Vice-President On this 9th day of August, A.D. 1976, before me personally came Thomas F. Delaney, to me known, who being by me duly sworn, did depose and say: that he resides in the County of Hartford, State of Connecticut; that he is the Assistant Vice-President of the HARTFORD ACCIDENT AND INDEMNITY COMPANY, the corporation described in and which executed the above instrument; that he knows the seal of the said corporation; that the seal affixed to the said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order. ~ ~ ~ STATE OF CONNECTICUT, ~ Gloria Mazotas, Notary Public ss. My Commission Expires March 31, 1978 COUNTY OF HARTFORD, CERTIFICATE I, the undersigned, Assistant Secretary of the HARTFORD ACCIDENT AND INDEMNITY COMPANY, a Connecti- cut Corporation, DO HEREBY CERTIFY that the foregoing and attached POWER OF ATTORNEY remains in full force and has not been revoked; and furthermore, that Article IV, Sections 8 and 11, of the By-Laws of the Company, and the Resolutions of the Board of Directors, set forth in the Power of Attorney, are now in force. Signed and sealed at the City of Hartford. Dated the 28th day of December 19 77 Form S-3507-8 Printed in U.S.A. ~ ~'~~ ~ ~ Assistant Secretary ! rm DL-11 Jun~, 1962 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES Division of Lands STATEWIDE OIL AND GAS BOND KNOW ALL MEN BY THESE PRESENTS that we, Amarex, Inc. Bond No. 4367817 Suite 200 200 North HarveM P. O. Box 1678, Oklahoma City, Oklahoma 73101 as principal, and Hartford Accident and Indemnity Company whose address is Hartford Pla. z_a_,_?__a_rt_ford, Connecticut "as surety, are held and firmly bound unto the State of Alaska in tile sum of One HuJidred Thousand Dollars ($100,000.00), lawful money of the United States for the use and benefit of (1) the State of Alaska, (2) any owner of a portion of the laud subject to the coverage of this bond who has a s~atutory right to compensation in connection with a reservation of the oil and gas deposits to the State of Alaska, and (3) any lessee or permittee under a lease or permit issued by the State of Alaska prior to the lssuauce of an otl or gas lease for the same land subject to this bond, covering the use of the surface or tile prospecting for or development of other mineral depqsits in any portion of such land, to be paid to the State of Alaska. For such payment will and truly to be mad~ we bind ourselves and each of us and each of our 'heirs, executors, administrators, successors and assigns, Jointly and severally by these presents. The conditions of the foregoing obligations are such that, whereas: A. The princ.ipal in one or more of the following ways has an interest in oil and gas leases on lands of the State of Alaska under the jurisdiction of the Division of Lands of the Department of Natural Resourcesi (1) as the lessee of such leases, (2) as the approved holder of operating rights in all or part of the lands covered by such leases under operating agreements with the lessee, and (3) as designated operator or agent under such leases pending approval of an assignment or operating agreement. B. The principal is authorized to drill for, explore for, develop, produce, process, and market oil and gas deposits in or un.der the lands covered by such leases and is obligated to comply with certain covenants and agreements set forth in such leases. C. The. principal and surety agree that the coverage of this bond shall extend to all of the principal' holding8 under such lehsea in the State of Alaska, and without notice to the surety shall also extend to and |nc 1 ude I 1. Any such oil and gas lease hereafter issued to or acquired by the principal, the coverage to become effective immediately upon such issuance or upon approval by the State of Alaska of a transfer in favor of the principal; 2. Pa%y such operating agreement hereafter entered into or acquired by the principal, the coverage to become effective tmanediately upon approval by the State of Alaska of the agreement or .of a transfer of such an agreement to the principal; 3. Any designation hereafter or the principal as operator or agent of a lessee under such a lease, the coverage to become effective immediately upon the filing of such a designation with the State of Alaska; and 4. Any extension of a lease covered by this bond, such coverage to continue without any interruption due to the expiration of the term set forth in the lease; Provided, that the surety may elect to have the additional coverage authorized under this Paragraph C become inapplicable as to all interests of the principal acquired more than 30 days after the receipt of written notice of such election by the Division of Lands. · ~ D. The surety hereby waives any right tO notice of and agrees that this bond shall remain in full force and effect notwithstanding: 1. A transfer or transfers either In whole or in part of auy or all of the leases or of the operating agreements, and further agrees to re~min bound under this bond as to the Interests either in the leases or in the operating agreements or in both retained by the principal when the approval of the transfer or transfers becomes effective; 2. Any modification of a lease or operating agreement or obligations thereuuder whether made or effected by commitment of such lease or operating agreement to unit, cooperative, con~nunltlzatlon, or storage agreements, or development contracts, su~pen~lous of operation~ or production, waivers, suspensions, or changes in rental, minimtan royalty and royalties, compensatory royalty payments, or othorwtse. E. The principal and surety agree that notwith~tal~di~g the termination of any lease or leases, operating agreements, or designations as operator or agent covort:cl by thl~ boud, whether the termination Is by operation of law or.otherwise, the bond shall remain in full force aud t~ft'ect as to all renminlng leases operating agreement~, or de~lgnations covered by the bond. ' a~ oper~lor o~ ~iW~i~ or fll)prow'~l ;t~ ~lll'l'~ltor ill ~.onsld~l'al loci ~ll h~.i~ll~ p~,~:mltt~.d I~ lur~li~h thl~ I,on4 In lieu o[ the lessees ~Ere~'s ~ml by thesv pr~,~,uls does hereby biml llim~',~'ll Io lull'Ill on I~,h~lt ~f each l~s~;ee ~ll though he were the lessee. O. The principal and surety agree that the neglect or t,~relmartmce o[ th,, lessor in enlorclng ~gain~r the lesseeu of such lessor, the payment of rentals or royaltlt.u or th{. performanct' ot any other covenant, condftion~ of agret.ment ol the least, s shall IIot itl tiny way reit. age the prl~cilm} and 8url. ty e/ther of them f¥om any liflbtlity undt~r this bond. ' H. The principal and surety agr~e that In tht. t. vt. nl'of ally delault undt. r the lt.~tst, 8 th~. lessor may commence and prosecute any clahn~ suit, action, or ot:h~.r i}roct, edl~g against the prlncilml and surety either of them without the neceeslty of joining the NO~.THEREFORE, if said principal shall In all respects faithfully comply with 811 of the provision8 of the leaee8 referr.ed to herelnabove, then the above obligations are to be void; otht. rwtse, to remain In full force and effect. Dated this 28th day o[ December _, 19 77 Wanda Boyd, Attorney-±n-Fact Page Two HARTFORD ACCIDENT AHD INDEMN-'TY COMPANY Hartford, Connecticut POWER OF ATTORNEY Know all men by these Presents, That the HARTFORD ACCIDENT AND INDEMNITY COM- PANY, a corporation duly organized under the laws of-the State of Connecticut, and having its principal office in the City of Hartford, County of Hartford, State of Connecticut, does hereby make, constitute and appoint A. J. OLSSON, GERALD M. SMITH, THOMAS A. MAC KENZIE, ANN THOMPSON, WANDA BOYD, STUART J. KANE, and J.L. of HOUSTON, TEXAS, HOYT H. WYATT, LANGFORD, its true and lawful Attorney(s)-in-Fact, with full power and authority to each of said Attorney(s)-in-Fact, in their separate capacity if more than one is named above, to sign, execute and acknowledge any and all bonds and undedakings and other writings obligatory in the nature thereof on behalf of the company in its business of guaranteeing the fidelity of persons holding places of public or private trust; guaranteeing the performance of contracts other than insurance poli- cies; guaranteeing the performance of insurance contracts where surety bonds are accepted by states and municipal- .'ities, and executing or guaranteeing bonds and undertakings required or permitted in all actions or proceedings or by law allowed, and to bind the HARTFORD ACCIDENT AND INDEMNITY COMPANY thereby as fully and to the same extent as if such bonds and undertakings and other writings obligatory in the nature thereof were signed by an Executive Officer of the HARTFORD ACCIDENT AND INDEMNITY COMPANY .and sealed and attested by one other of such Officers,. and hereby ratifies and confirms all that its said Attorney(s)-in-Fact may do in pursuance hereof. This power of attorney is granted by and under authority of the following provisions: (1) By-Laws adopted by the Stockholders of the HARTFORD ACCIDENT AND INDEMNITY COMPANY at a meet- ing duly called and held on the 10th day of February, 1943. ARTICLE IV · SECTION 8. The President or any Vice-President, acting with any Secretary or Assistant Secretary, shall have power and authority to appoint, for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, one or more Resident Vice-Presidents, Resident Assistant Secretaries and Attorneys-in-Fact and at any time to remove any such Resident Vice-President, Resident Assis- tant Secretary, or Attorney-in-Fact, and revoke the power and authority given to him. SECTION 11. Attorn. eys-in-Fact shall have power and authority, subject to the terms and limitations of the power of attorney issued to them, to execute and deliver on behalf of the Company and to attach the seal of the Company thereto any and all bonds and undertakin.,...gs, and other writings obligatory in the nature thereof, and any such instrument executed by any such Attorney-in-Fact shall be as binding upon the L;ompany as if signed by an Executive Officer and .sealed and attested by one other of such Officers. (2) Excerpt from the Minutes of a meeting of the Board of Directors of the HARTFORD ACCIDENT AND INDEM- NITY COMPANY duly called and held on the 11th day of June, 1976: RESOLVED: Robert N. H. Sener, Assistant Vice-President and Thomas F. Delaney, Assistant Vice-President, shall each have as long as he holds such office the same power as any Vice-President under Sections 6, 7 and 8 of Article IV of the By-Laws of the Company. This power of attorney is signed and sealed by facsimile under and by the authority of the following Resolution adopted by the Directors of the HARTFORD ACCIDENT AND INDEMNITY COMPANY at a meeting duly called and held on the 6th day of August, 1976. RESOLVED, That, whereas Robert N. H. Sener, Assistant Vice-President and Thomas F. Delaney, Assistant Vice-President, acting with any Secretary or Assistant Secretary, each have the power and authority, as long as he holds such office, to appoint by a power of attorney, for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, one or more Resident Vice-Presi- dents, Assistant Secretaries and Attorneys-in-Fact; "- Now, therefore, the signatures of such Officers and the seal of the Company may be affixed to any such power of attorney or to any certificate relating thereto by facsimile, and any such power, of attorney or certificate bearing such facsimile signatures or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by facsimile signatures and facsimile seal shall be valid and binding upon the Company in the future with respect to any bond Or undertaking to which it is attached. In Witness Whereof, the HARTFORD ACCIDENT AND INDEMNITY COMPANY has caused these presents to be signed by its Assistant Vice-President, and its corporate seal to be hereto affixed, duly attested by its Secretary, this 9th day of August, 1976. Attest: STATE OF CONNECTICUT, SS. COUNTY OF HARTFORD, .. HARTFORD ACCIDENT AND INDEMNITY COMPANY Thomas F. Delaney Assistant Vice-President On this 9th day of August, A.D. 1976, before me personally came Thomas F. Delaney, to me known, who being by me duly sworn, did depose and say: that he resides in the County of Hartford, State of Connecticut; that he is the Assistant Vice-President of the HARTFORD ACCIDENT AND INDEMNITY COMPANY, the corporation described in and which executed the above instrument; that he knows the seal of the said corporation; that the seal affixed to the said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order. STATE OF CONNECTICUT, t k%~.~?¢/ Gloria Mazotas, Notary Public COUNTY OF HARTFORD,I 'ss, CERTIFICATE~ My Commission Expires March 31, 1978 I, the undersigned, Assistant Secretary of the HARTFORD ACCIDENT AND INDEMNITY COMPANY, a Connecti- cut Corporation, DO HEREBY CERTIFY that the foregoing and attached POWER OF ATTORNEY remains in full force and has not been revoked; and furthermore, that Article IV, Sections 8 and 11, of the By-Laws of the Company, and the Resolutions of the Board of Directors, set forth in the Power of Attorney, are now in force. Signed and sealed at the City of Hartford. Dated the 28th day of December 19 77 Form S-3507-8 Printed in U.S.A. Assistant Secretary Jan~, 1962 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES Division of Lands STATEWIDE OIL AND GAS BOND KNOW ALL MEN BY TItESE PRESENTS that we, Amarex, Inc. Suite 200 Bond No. 4367817 20___0 No____rt_h..H~rvey P. O. Box 1678, Oklahoma City, Oklahoma 73101 . as principal, and Hartford Accident and Indemnity Company whose address is Hartford Pl~z_a_,_...H__a_r.t_ford, Connecticut .as surety, are held and firmly bound unto the State of Alaska in tile sum of One ilundred Thousand Dollars ($100,000.00), lawful money of the United States for the use a,~d benefit of (1) the State of Alaska, (2) any owner of a portion of the land subject to the coverage of this bond who has a statutory right to compensation in connection with a reservation of tile oil and gas deposits to the State of Alaska, and (3) any lessee or permittee under a lease or permit issued by the State of Alaska prior to tile Issuance of an oil or gas lease for the same land subject to this bond, covering tile use of the surface or the prospecting for or development of other mineral depqsits in any portion of such land, to be paid to the State of Alaska. For such payment will and truly to be madh we bind ourselves and each of us and each of our 'heirs, executors, administrators, successors and assigns, Jointly and severally by these presents. The conditions of the foregoing obligations are such that, whereas: A. The principal in one or more of the following ways has an interest in oil and gas leases on lands of the State of Alaska under the Jurisdiction of the Division of Lands of the Department of Natural Resourcesl (1) as the lessee of such leases, (2) as tile approved holder of operating rights in all or part of the lands covered by such leases under operating agreements with the lessee, and (3) as designated operator or agent under such leases pending approval of an assignment or operating agreement. B. The principal is authorized to drill for, explore for, develop, produce, process, and market oil and gas depostt;s in or under the lands covered by such leases and ts obligated to comply with certain covenants and agreements set forth in such leases. C. Tile. principal and surety agree that the coverage of this bond shall extend to all of the principal' holdings under such lehses in the State of Alaska, and without notice to the surety shall also extend to and inc I ude ~ 1. Any such oil and gas lease hereafter issued to or acquired by the principal, tile coverage to become effective Immediately upon such issuance or upon approval by the State of Alaska of a transfer in favor of the principal; 2. ~A~iy such operating agreement hereafter entered into or acquired by the principal, tile coverage to become effective lm~nediately upon approval by the State of Alaska of the agreement or .of a transfer of such an agreement to the principal; 3. Any designation hereafter or the principal as operator or agent of a lessee under such a lease, the coverage to become effective immediately upon the filing of such a designation with the State of Alaska; and 4. Any extension of a lease covered by this bond, such coverage to continue without any interruption due to the expiration of the term set forth in tile lease; Provided, that the surety may elect to have the additional coverage authorized under this Paragraph C become inapplicable as to all interests of the principal acquired more than 30 days after the receipt of written notice of such election 'b~ the Division of Lands. D. Tile surety hereby waives any right to notice of and agree8 that this bond shall remain in tull force and effect notwithstanding: 1. A transfer or transfers either In whole or in part of any or all of the leases or of the operating agreements, and further agrees to re,mia bound under this bond as to the Interests either ill the leases or in the operating agreements or in both retained by tile principal when the approval of the transfer or transfers becomes effective; 2. galy modification of a lease or operating agreement or obligations thereunder whether made or effected by cormnltment of such lease or operating agreement to unit, cooperative, co,mnunltlzatlon, or storage agreements, or development contracts, su~penslons of operations or production, waivers, suspensions, or changes in rental, mtnimtun royalty and royalties, compensatory royalty payments, or otherwise. E. The principal and surety agree that notwlthutanding the termination of any lease or leases, operating agreements, or designations as operator or agent cow. red by thls bond, whether tile termination ts by operation of law or otherwise, the bond shall rema£n tn full force and ef[ect as to all renmtnlng leases operating.agreements, or designations covered by the bo,~d. ' ~~_rvatiom Moose Po~t Unit %1 State ~t No. 78-1 Agent For ~, Inc. ~~, Inc. 700 H Street, Andlorage, ALa 99501 Enclosed is the a~ applioaticm f~r permit to drill the above referenced well at a loca~ in Section 14, To~~p 9N, Range. ~ 9W, SM. ~11 m~ples, core drips amd a mud log are required. s~ is not req0/re~. A directic~al Many rivers in Alaska and theJ~ drai_~ sys~ have been classified as ~ant for the- sp~ or migration of anadrcm0us fish. Operations in these areas are subject to AS 16.50.870 and the ~ticms p~gated ~under (Title 5, Alaska Admimistrative Code). Prior to ccmmencing operations you may be ccmta~ k~./ th~ F~bitat C~rd/natnr' s office, ~t of Fish and Ga~e. Polluticm of any waters of the State is prohibi~ by AS 46, Chapter 03, Article 7 and the regulations ~gated thereunder (~.tle 18, Alaska Adm~~ ~, Chapter 70) and by the Federal I~ter Pollution Cc~l Act, as amerzted. Prior to c~ operati~ you may be contacted, by a representative of the D~t of Env~tal Ccn~=-rvation. Pursuant to AS 38.40, Local ~Lire ~ State L~es, the Alaska DepOt of Labor is being notified of the issuance of this pezmit to drill. To aid us Ln schedu_]~ng field work, we would appreciate your notifying this office with/n 48 h~/rs af%er t/~e w~ll is s~. We w~uld also like to be notified so that a reparative of the Division may be present to witness testing of blcwot~ preventer equi~t before st_~face casing shoe is drilled. T. Kelly -2- January5, 1978 ~ ~event of ~3Jx~or ab~~t please give this office adequate ~notificatic~thatwemayhaveawitnesspresent. Department of Fish ~ Game, Habitat Sectiom w/o encl. Department of Envirc~ne~ ~ticm w/o encl. Depa~m~nt of Labor, Supervisc~, Labor Law Ccmp~ Division w/o encY. Form 10-401' REV. 1-1-71 STATE OF ALASKA OIL AND GAS CONSERVATION COMMITTEE PERMIT TO DRILL OR DEEPEN la. TYPE OF WORK DRILL [~ b. TYPE OF WELL OILI-'-1 GAS F'--I WELL U WELL ~J 2. NAME OF OPERATOR Amarex, Inc. %T. E. SUBMIT IN TRIPLICATE (Other instructions on reverse side) API NO. 50-133-20312 DEEPEN [~ SINGLE MULTIPLE OTHERExploratory ZONE E] ZONE F1 Kelly, 700 H St., #2, Anchorage, Ak. 99501 73101 3. ADDRESS OF OPERATOR P.0. Box 1678, Oklahoma City, Oklahoma 4. LOCATION OF WE~I~ 40 Atsurface ! FNL, 2140' FEL At proposed prod. zone Straight Hole 13. DISTANCE IN MILES AND DIRECTION FROM NEAREST TOWN OR POST OFFICE* 28 miles north of Kenai, Alaska 14. BOND INFORMATION: b~c3. a,~rA'~.'-~t [~c¢' ig ,+ S~i~tewide. Oislu,etya~n~/~No.Gas ~-~3 l'>,, '~_~_ .--- "f 6. LEASE DESIGNATION AND SERIAL NO. ADL 59358 7. IF INDIAN, ALLOTTEE OR TRIBE NAME 8. UNIT FARM OR LEASE NAME Moose Point Unit 9. WELL NO. #1 10. FIELD AND POOL, OR WILDCAT Wildcat 11. SEC., T., R., M., (BOTTOM HOLE OBJECTIVE) Sec. 14~ T9N~ R9W, SM. 12. Amount $1 00,000. O0 15. DISTANCEPROPERTY(AlsoLOCATION to nearest FROM TO OR drig, NEAREST LEASE PROPOSED unit, LINE, if any) FT * 2 _] ____ 401 #!116. 9ND' 6 0OFACRES IN LEASE 18. DISTANCE FROM PROPOSED LOCATION 19. PROPOSED DEPTH TO NEAREST WELL DRILLING, COMPLETED, OR APPLIED FOR, FT. 10,000 ft. SE - Birch Hill Un. 10,000' 21. ELEVATIONS (Show whether DF, RT, CR, etc.) 125 ft. qrd, (approximately) 23. PROPOSED CASING AND CEMENTING PROGRAM 17. NO.ACRES ASSIGNED TO THIS WELL 640 20. ROTARY OR CABLE TOOLS Rotary 22. APPROX. DATE WORK WILL START January l, 1978 )ol SIZE OF HOLE SIZE OF CASING WEIGHT~PER FOOT GRADE SETTING DEPTH Quantity of cement 36" 30" as available 70- 90 ft. drive pipe 26" 20" as available 300 ft. to surface "17~" 13-3/8'54.5 & 61# J-55 2,500 ft. 1731 cu. ft. - to surface 12~" 9-5/8'40 & 43.5# J55&N80 6,500 ft. 900 cu. ft. - 2 staqe thru DV to 8½" 7" 23,26,29# N80 j 10,000 ft. 252 cu. ft. - st§. cement See Attached Drill inA Program RF-.CF: VED / IN ~O~ SPACE DESCRIBE PRO~SED P~OG~M: If propo~l is to deepen ~ve data on present productive zone and proposed ~ / new productive zone. If prOpoml is to d~ ~deepen d~ecfion~y, ~ve pertinent data on sub~face locations and measured and true ~// verti~ depthm~owout ~gam. 24- I hereby ~Y~t; ~regoing is Trued C~ / ~ / ~~~' . ~ o.t~ December ~6, ]977 m~g~en~ for ~mavex, Inc. (~s space fo~ate office use) ~ ~ ~NDITIONS OF APPROVAL, IF ANY: IV s IDIRECTIONAL SURLY REQUIRED A.P.I. NUMERICAL CODE PERMIT NO. APPOVED BY APPROVAL ]DATE ~ ~' TITLE *See Instruction On Reverse Side January 5, 1978 DATE January 5, 1978 MOOSE POINT Kenai Peninsula, Alaska DRILLING PROGRAM (1) Exploratory Casing Sizes: 13-3/8, 9-5/8", 7.0" (2) Casing Points: 13-3/8- 2,500', 17½" hole 9-5/8" - lO,O00 ft., 12¼" hole (3) Mud Weights: 0 - 2,000', 9.0- 9.5 ppg 2,000 - 4,000 - 9.4 - 9.8 ppg ?~000' - 10,000', 9.8- 11.5 ppg · w · Set 30" drive pipe at 50+ ft. Drill 26" hole and set approximate 300' 20" conductor. Install mud logging unit and 'log 300 ft. - T.D. Drill 17½" hole to 2,500 ft. Run and cement to surface 13-3/8" buttress casing. Nipple up, test BOP per "Operating Instructions D-17" Class III, install rental de-silter & Swaco choke. Be Drill 12¼" hole to 6,500 ft. Program intermediate log run on dull bit @ approximately 6,500 ft. Run DIL, GR - BHC, and FDC - CNL - GR. · Run and set 6,500' 9-5/8" casing of design string. Drill 8½" hole to T. D. or approximately 10,000 ft. Run DIL with linear & logs scales. Run GR-BHC with intergrator curve. Run FDC-CNL-GR and HRD. Take sidewall samples as directed by geologist. · Based on log evaluation and shows, prepare to abandon well or complete as follows: (a) Run and cement lO,O00 ft. 7" casing of adequate design. Perforate and run production tests through 2-7/8" tubing. THOMAS E. KELLY CONSULTANT EARTH SCIENCES AGENT FOR AMAREX, INC. Local Contact: Thomas E. Kelly 700 H Street, Suite #2 Anchorage, Alaska 99501 907- 279-9589 AMAREX, INC. -- MOOSE POI NT UNIT No. I PROPOSED LOCATION DRAWN BYt AMS SCALE:: 2"= I-mile EXHIBIT: CHECKED BY: T. E. K, O~'E: Dec. 1977 T'r CompanyA-.~.,i( Leåse & ~Je 11 No. !ltPtlse PIJJ."'.J'tll?,:¿' 7JI. / Yes No Remark~. = '~Kðt< #M1è ar/~ ß.i¡). /.. L/ ' 7? CHECK LIST FOR NEH ~'lELL PERt~ITS 1. Is the permit fee attached . . . . . . . . ........ . . . . . 3. Is a registered survey plat attached. . . . . . . . . . . . . . . . '-~Î:t.' . . . . . . . . . . . . . . ~ IrMI< ~,'(I r1tJf>',d 2. Is well to be located in a ,defined pool 4. Is well located proper distance from property line. . . . .'. . . . '~--- 5. Is well located proper distance from other wells. ........ . I!:£!.~ 6. Is sufficient undedicated acreage available in this pool 7. Is well to be deviated. . . . . . . . .",. . . . .~ - ~K.. . . . . . ....... . . . . 8. Is operator the only affected party . . . . . . . .,/"--. . ~K- ~~ . . . . . . 9. Can permit be approved before ten-day wait' ....... . . . . . . 10. Does operator have a bond in force ........ I ' .'. . . . ~ - . . . . 11. Is a conservûtion order needed ~ ~ . . . . . . . - ~t: . . . . . . . . . . 12. Is admini strati ve approval needed . . . . fb)~ ............. 13. Is conductor string provided. . . . . . . . . . . . . . . . . . . . ilL ~ 14. Is enough cement used to circulate on conductor an'd surface. . . . ;tf,L 15. ' ~!i.J 1 ...çement...tj.e ....il1.' ~Yr:fg:ç.e. g,nçl.. .intermecJ,Ïg.te...Q.&¡p.y:.QcJ.Y.Çt.jgJl;.;$,;tring;$,.'.'. ,/1.;.,0, --"- 16. Wi fl,cement c'over all known producti ve hori zon"s ... . . . . . . . 9!L - 17. 14i11 surface casing protèct fresh water zones. . . . . . . . . . . If;- 18. Hill all casing give adequate safety in collapse, tension & burstl . ((0 19. Does BOPE, have sufficient pressure rating - Test to 300 CL psig . 1fJl 20. HasDMEM approved Plan of Operation ) Additional Requirements: - iJL' . . . . . . . . .". . . . '. . . i. C' ~.~~p&..... //Y/?!" .Ø1NtL . '. . ' . Approva'. Recommended: G.ee logy: Engi neering: TRM -. JAL HHH ~JCM Jiha....'...".',..... H~'JK //4J.'( LCS ß- RAD 1lft(). Revised 11/17/76"