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Home My WebLink About202-182 Image ~. )oject Well History File C,",~er Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. J OJ.. - J ~ ~ Well History File Identifier Organizing (done) o Two-sided 111111111I111111111 ~scan Needed 1 RESCAN ~ Color Items: D Greyscale Items: DIGITAL DATA OVERSIZED (Scannable) o Maps: D Other Items Scannable by a Large Scanner D Diskettes, No. D Other, No/Type: o Poor Quality Originals: OVERSIZED (Non-Scannable) D Other: o Logs of various kinds: NOTES: o Other:: I )J)A /{) Date: <0 I c¡ os-- /s/ , V Y I Date: <? 10 r;s- /s/ ~ m BY: Helen~ Project Proofing BY: Helen ÇMari~ Scanning Preparation Lf- x 30 = J dO +?> = TDTAL PAGES 1;)3 (CountRe~ not ir:lude cover sheet) JAAf Date: ~ to tJS- /s/ YV I I I BY: Helen~ BY: Production Scanning Stage 1 Page Count from Scanned File: I d Y- (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: v/ YES Helen c-Maria ) Date: ~ ( I ~ ~ YES NO NO 151 ~p Stage 1 If NO in stage 1 page(s) discrepancies were found: BY: Helen Maria Date: /s/ III 11111111111 1111I III "1111111111111I 1 I Date: /s/ Quality Checked 1111111111111111111 Scanning is complete at this point unless rescanning is required. ReScanned BY: Helen Maria Comments about this file: e e MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg. ~.1 r;¡ 11lùb P. I. Supervisor 71 DATE: May 8, 2005 ....... ".'" _. l~ ~ ....... " ~k' 'ftl 'Õ-'... ' FROM: John Spaulding, Petroleum Inspector SUBJECT: Location Clearances Pioneer Unit Pioneer Natural Res. The following wells in the Pioneer Unit were inspected for location clearances: Bering 03 PTD: 202-177 Baranoff 04 PTD: 202-178 Cook 01 PTD: 202180 Lowell 02 PTD: 202-179 1702-14CC PTD: 199-065 1702-15DA WDW PTD 199-064 1702-15DD PTD: 199-066 Corn husker 04 PTD: 202-181 vRL Smith 03 PTD: 202-182 DL Smith 01 PTD: 202-184 Stromberg 02 PTD: 202-183 BL T 01 PTD: 199-068 SCANNED .JUN 1 ,;± All locations were found to be in excellent shape, well graded with some small amounts of debris. I requested that the debris be cleaned up and Joe Polya Pioneer Nat. Resources rep. agreed. He will inform as to when the final cleanup has been made so that I may make one last pass over the locations. SUMMARY; I found all locations in very good condition with small amounts of tidying up to be done. Attachments: photos on CD NON-CONFIDENTIAL '" .. Wen location North of Houston . . MICROFILMED 07/25/06 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE F:\LaserFicbe\CvrPgs _ Inserts\Microfilm _ Marker.doc _ STATE OF ALASKA . ALASKA ðPAND GAS CONSERVATION COMMISSI<Y RECEIVED OCT 1 7 Z005 WELL COMPLETION OR RECOMPLETION REPORT n.1 or:..IJ!1~. Cpmm¡~ 1 a. Well Status: OilO GasO Plugged 0 Abandoned 0 " Suspended 0 WAGU 1 b. Well Class: AnchOfage 20MC 25.105 20MC25.110 Development 0 Exploratory 0 ./ GINJO WINJO WDSPLO No. of Completions Other Service 0 Stratigraphic Test 0 2. Operator Name: 5. Date Comp., Susp., or 12. Permitl,9~iUNumber: Pioneer Natural Resources Alaska, Inc. Aband.: Aug 18,2005 '""--/ 3. Address: 6. Date Spudded: 13. API Number: 700 G Street, Suite 600 Anchorage, AK 99501 October 7,2002 50-009-20024-00 / 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Num~ Surface: 3272' FSL, 606' FEL, Sec 2,T17N, R3W SM November 13, 2002 Robert L Smith #3 Top of Productive Horizon: 8. KB Elevation (ft): 15. Field/Pool(s): Same 254 Total Depth: 9. Plug Back Depth(MD+ TVD): Pioneer Unit Same Surface 4b. Location of Well (State Base Plane Coordinates): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 1682862 y- 2774603 (NAD 83) Zone- 4 2300 Private TPI: x- Same y- Same Zone- 11. Depth Where SSSV Set: 17. Land Use Permit: Total Depth: x- Same y- Same Zone- NA NA 18. Directional Survey: Yes 0 No L::J 19. Water Depth, if Offshore: 20. Thickness of Permafrost: NA feet MS L NA 21. Logs Run: 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT. GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 12.75 NA NA Surface 420 Surface 420 16 30 sx Class A 8.625 23 J-55 Surface 1016 Surface 1016 11 74 bbl Class A 5.5 17 J-55 Surface 2201 Surface 2201 7.875 75 bbl Class A 23. Perforations open to Pro-ctrrction (MD + TVÐ otTop and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) None 2.875 2129 NA 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. SCAN NET' C ] 9 2005 DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED ~ .'J "'^',;O;f;..,;;/ 1674-2093 5 bbl Type I cement squeezed into perfs I \0\ 26. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: IGas-Oil Ratio: Test Period -+ Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity - API (corr): Press. 24-Hour Rate ..... 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". None (Jt·\\u\r'~kL .1\ C'Jv1IVJA -, - 1-- ,,.. L..- Form 10-407 Revised 12/2003 CONTINUED ON REVERSE '"0/' \... \ )P'''-M'' , lal'~( \/::J sion ~~~ '1;0\0 ~ NAME GEOLOGIC MARKERS MD 29. RMATION TESTS 28. TVD Include and briefly summarize test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state uNonell. None 30. List of Attachments: Final Well Schematic, Operations Summary 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Signature: Title: Sr. Staff Drilling Engineer Printed Name: Joe Polva - Phone: 907-343-2111 Date: INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 e e Pioneer Natural Resources Alaska, Inc. Pioneer Unit Robert L Smith #3 Plug and Abandonment Operations Summary July 28, 2005 Check well for pressure, 200 psi on casing, bleed off gas. Rig up circulating lines, filled well with water and establish circulation and injection capability into perforations. Mixed and pumped 50 bbl, 15 ppg, Type I cement and pump cement down tubing with casing/tubing annulus closed for first 12 bbl, open annulus and take returns to surface. Pumped all 50 bbl cement with returns just starting to show cement. Swapped hoses and pumped 5 bbl cement down tubing casing annulus, shut in well. Run in to 35' below grade with %" pipe and pump top job on 12-3/4" x 8-5/8" annulus. Mixed and pumped 2.3 bbl15 ppg cement top job. Annulus quit bubbling after 1 bbl cement pumped. Pulled % inch pipe. Centered 8-5/8" casing in conductor. RD, cleanup equipment. July 30,2005 Check well. Slight blow on annulus. Unable to determine type of fluid (gas or air) due to malfunctioning 4 gas monitor. Probable trapped air from bullhead cement top job in 5.5 x 2-7/8 inch annulus. July 31, 2005 Check well. Small puff of fluid/gas when annulus needle valve opened. Pressure tested annulus to 550 psi, held steady then to 3000 psi. Pressure bled back to 850 and held steady. Approximately 0.10 bbl water pumped during test. Bleed off pressure, annulus dead. August 1, 2005 Cutoff wellhead. When laying down wellhead, found wellhead cap to be only hand tight, explaining previous pressure test bleed off. Cement to surface in 12-3/4 x 8-5/8 inch and 8-5/8 x 5-112 inch annuli. Cement in 2-7/8 inch tubing and 2-7/8 x 5-112 inch annulus near surface but not measured due to no leadline available at end of work day. August 2, 2005 Measured depth to cement at 20 feet below grade in 2-7/8 x 5-112 inch annulus. Tubing cement at 10 feet below grade. August 5, 2005 Pressure grouted 12-3/4 inch conductor with 15.5 ppg Type I cement with 2% CaC12 at 650 psi. August 9, 2005 Matt Rader (ADNR) and Chuck Sheve (AOGCC) inspected Pilot land 2 wells and approved all 8 wells for marker plate installation and backfill. August 18,2005 Welded marker plate on well. Backfill to be completed upon removal of surface equipment. - 1 - L - 2- - 3 - e e Pioneer Unit RL Smith #3 Final Well Schematic Well RL Smith #3 API 50-009-20024-00 Qtr/Qtr See 2 Pioneer Natural Resources Alaska, Inc. Twp 17N Rng 3W Size Weight Grade Thread Depth County Matanuska,Susitna State Alaska Casing 8-5/8 23 J-55 ST&C 1016 Field Pioneer Unit Country USA Casing 5-1/2 17 J-55 LT&C 2201 KB/GL 269/265 Tubing 2-7/8 6.4 J-55 8rd 2129 No. Depth Length 00 10 Description 1 2189 2 4.24 N/A Alpha Tools Midget 1110,000 psi CIBP 2 2178 30.3 2.875 2.441 1 jt 2-7/8" Tail Pipe 3 2170 8 N/A N/A Perfs from 2170 - 2178, 4 spf and 23 gram 4 2148 11.51 2.88 N/A 40N006 pump wI torquestopper No-turn 5 2090 3 N/A N/A Perfs from 2090 - 2093, 4 spf and 23 gram 6 1933 4 N/A N/A Perfs from 1933 - 1937,4 spf and 11 gram 7 1921 4 N/A N/A Perfs from 1921 - 1925,4 spf and 11 gram 8 1824 3 N/A N/A Perfs from 1824 - 1827, 4 spf and 11 gram 9 1802 4 N/A N/A Perfs from 1802 - 1806, 4 spf and 11 gram 10 1724 4 N/A N/A Perfs from 1724 - 1728, 4 spf and 11 gram 11 1674 4 N/A N/A Perfs from 1674 - 1678, 4 spf and 11 gram 12 Surface Well cutoff 5.5 feet below ground level. TOC? 12 Modified by JRM 9/13/05 . . MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg,v C'II _Ii))" P. I. Supervisor I \~1 ¡ b u DATE: August 9,2005 FROM: Chuck Scheve, Petroleum Inspector SUBJECT: Surface Abandonment Pioneer Unit o L Smith #1 PTO# 202-184 Stromberg #2 PTO#202-183 R L Smith #3 PTO#'t!02tM Cornhusker#4 PTO# 202-181 Tuesdav, Auaust 9,2005: I traveled to Pioneer's Coal Bed Methane exploratory locations to inspect the casing cut off and abandonment of the above listed wells. All casing strings on the above listed wells were cut off at approximately 5' below original ground level. All 4 wells were found full of cement to within 18" of surface in all strings and will be topped off prior to installation of the marker plates. The marker plates with the required information bead welded to them were on location and will be welded to the outer most casing. """.-='=_'_-""--=-.~-~- "0'-",,- "".-'-"'-_ .c-. -_',,~_~ '_'.=."_ ....".. .._.,.-,=",.,,_,~._. " mn ....-~~-"'·=..;:=.t~~_..,·-·,·,-·__··__.""'··""'-'""'"'_~-"=~·o_."'_".,. SUMMARY: I inspected the casing cut off depth, and the P&A marker plates on the 0 L Smith 1, Gary Joann Stromberg 2, Robert L Smith 3 and Cornhusker 4 wells and found all to be in order. Attachments: 0 L Smith 1.JPG Stromberg 2.JPG R L Smith 3 .JPG Cornhusker 4 .JPG (, It; " "}f\P~ SC!\NNEL \; (J Jl t.,; ..;'c- " . . Pioneer Unit Surface Abandonments Photos by AOGCC Inspector Chuck Scheve August 9, 2005 ; , .~(~ , " âi: .- Comhusker #4 Casing Cut , """~~-"...,--.~-;>-.~..,,,..,- -- DL Smith #1 Casing Cut 2 ! -.? J \J'ck ~~ u \-., o . j DATA SUBMITTAL COMPLIANCE REPORT 7/6/2005 Permit to Drill 2021820 Well Name/No. ROBERT L SMITH 3 MD 2300'" lVD 2300 /" Completion Date 6/18/2003/ REQUIRED INFORMATION Mud Log No DATA INFORMATION Types Electric or Other Logs Run: DNL, GR, Neu, BL, Mud log, Inc Survey Well Log Information: Logl Electr Data Digital Dataset , I Y~...Type Med/Frmt Number Jl,ame ~pt .rDirectional Survey ~g J-G;. ! ~Óg rr-0g ¡ ~ lþ59 I)&g ¡ fOg Well Cores/Samples Information: ~ment Evaluation ~amma Ray ~utron ~duction/Resistivity ,.,.-Mud Log ,..Añd uction/Resistivity ,0ensity /: . Neutron Name Interval Start Stop o 0 l,/!'u ;;( J3 D 31/~¿ ') Oc~ ~~Ö)- Operator EVERGREEN RESOURCES (ALASKA) API No. 50-009-20024-00-00 Completion Status 1-CBNG Current Status 1-CBNG UIC N -_. ----"- -- - . Samples No Directional Survey No - - ------ "- ------ --- ---- (data taken from Logs Portion of Master Well Data Maint) Log Log Run Interval OHI Scale Media No Start Stop CH Received Comments -------- -- 250 2070 9/16/2003 Patterson Wireline Inclination Survey 5 Blu 3 0 1643 Case 2/16/2005 Cement Bond Log/Patterson 5 Blu 0 2085 2/16/2005 Dual Spaced Cement Bond Gamma Ray/Patterson 5 Blu 2 0 2085 Case 2/16/2005 Cased Hole Gamma Ray Neutron Log/Patterson 5 Blu 2 420 888 2/16/2005 Induction Gamma Ray/Patterson 5 Blu 450 2330 2/16/2005 Columbine Logging 5 Blu 3 1020 1620 2/16/2005 Induction Gamma Ray/Patterson 5 Blu 4 1020 1470 2/16/2005 Compensated Density/Patterson 5 Blu 2 420 888 2/16/2005 Compensated Density Neutrbn/Patterson Sent Sample Set Number Comments Received -----~---_.- - - fIr If - ---- ---~. - -- --- - DATA SUBMITTAL COMPLIANCE REPORT 7/6/2005 Permit to Drill 2021820 Well Name/No. ROBERT L SMITH 3 Operator EVERGREEN RESOURCES (ALASKA) API No. 50-009-20024-00-00 MD 2300 lVD 2300 Completion Date 6/18/2003 Completion Status 1-CBNG Current Status 1-CBNG UIC N ADDITIONAL INFORM~ION Well Cored? Y ~ Chips Received? Y / N ~ Daily History Received? 2J/N ~ Formation Tops Analysis Received? ~ ----------- --, - - Comments: Compliance Reviewed By: ~~ Date: ÁL~~'~I~. --- - I).J~~ i\ { (fù.' : ~~. ; Jr¡¡:,ð\ 'ì? rp \\ \LiL " ~ ~ tll... ~.~. I, }!' 'f ~ il .1 ~ ,~ ,,1 1··· II '(ãj) q yj¡ '1 ·u: ;1 ~ '..-;:;,/ Ww L¡ ; 1..::= /~, :;::=.1 ,I :1 !¡ !) ,I J ,¡ , : '\ j , ,j { .), . '¡;¡":1r \.~~.) W r:1 n j~ .~> n'~J':! !";"1 ¡ /\ \ :¡! it\.\, Ct"W ¡ V( 1A \ I JJ, ;:·1 }J...J'1 '\\ ¡ i\', ! LH ¡ i'\' ~! \ ¡.-. ", {j 1 t 1 ': \ \ 1·'-' \ ;W u ~,W W \~/ U \~L.J U FRANK H. MURKOWSKI, GOVERNOR AI,ASKA OIL A5D GAS CONSERVATION COMMISSION 333 W. 'JTH AVENUE. SUITE 100 ANCHORAGE. ALASKA 99501-3539 PHONE (907) 279·1433 FAX (907) 276-7542 Joe Polya Sr. Staff Drilling Engineer Pioneer Natural Resources Alaska, Inc 700 G Street Ste 600 Anchorage, AK 99501 .1()~- ~tv Re: Robert L. Smith #3 305-185 Dear Mr. Polya: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior C less rehearing has been requested. DATED this~ay of July, 2005 Enc!. July 13, 2005 Mr. Winton Aubert Alaska Oil and Gas Conservation Commission 333 W. 7th Ave #100 Anchorage, Alaska, 99501-3539 RECEIVED JUL 1 3 Z005 Alaska Oil & Gas Cans. Commission Anchorage RE: Sundry Approval (Form 10-403) Pioneer Unit - RL Smith #3 Well Plug and Abandon Dear Mr. Aubert: Attached is the 10-403 form requesting approval to Plug and Abandon the RL Smith #3 well. Pioneer Natural Resources acquired the Pioneer Coal Bed Methane Project through the acquisition of Evergreen Resources Corporation. Evergreen Resources attempted various stimulation techniques in an effort to produce the methane from these wells; however, the wells did not prove economical. Pioneer has determined that this project is not economically feasible at this time based on a thorough evaluation which included peer assists with experts involved in the profitable coal bed methane projects in Colorado and Canada. Pioneer is requesting a BOP waiver for the proposed RL Smith #3P&A work. This well can be killed with fresh water and has been granted BOP waiver's in 1: the past by the AOGCC. If yo~ haye any questions, please feel free to contact me at 907-343-2111 or J. çt{vv1 \ polyaJ~ploneernrc.com. ! ('¿-v "¡¡\.~ / \, -ie-- ¡J () LA) ~ \J y.J (J.¡S;;-' Sincerely, >\"~~ Joe Polya Sr. Staff Drilling Engineer Pioneer Natural Resources Alaska, Inc. 700 G Street, Suite 600 Anchorage, AK ORIG!!~AL l.. \t-fç¡\- 1/14/ ¿f-() ~ ./ STATE OF ALASKA C{ì1- 7 '>'0) RECEIVED ALA! . OIL AND GAS CONSERVATION COMM~ ')N 'J APPLICATION FOR SUNDRY APPROVAL JUL 1 3 2005 0. ~~e~~a~;h~~~wn U Perforate U ^lüskn QJt~~ons. CUIJII~ ~ Plug Perforations 0 Stimulate 0 Time Extensi~~rage .:t Perforate New Pool 0 Re-enter Suspended Well 0 -l 4. Current Well Class: / 5. Permit to Drill Number: ~ Development 0 Exploratory 0 202-182 /' Stratigraphic 0 Service 0 6. API Number: Abandon l:J Alter casing 0 Change approved program 0 2. Operator Name: Pioneer Natural Resources Alaska, Inc. 1. Type of Request: 3. Address: 700 G Street Suite 600 Anchorage, AK 99501 7. KB Elevation (ft): 269 ft KB (4' AGL) 8. Property Designation: Private 11. Total Depth MD (ft): 2300' MD Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): 1674-2178 Packers and SSSV Type: Total Depth TVD (ft): 2300' TVD Length n/a 35 feet 1005 feet n/a 2190 feet n/a / Suspend U Repair well 0 Pull Tubing 0 50-009-20024-00-00 / 9. Well Name and Number: / Robert L Smith #3 10. Field/Pools(s): Pioneer Unit (610500) PRESENT WELL CONDITION SUMMARY Effective Depth MD (ft): Effective Depth TVD (ft): 2191' MD 2191' TVD Size n/a 12.750 inches 8.625 inches n/a 5.500 inches n/a Perforation Depth TVD (ft): 1674-2178 N/A 12. Attachments: Description Summary of Proposal U Detailed Operations Program 0 BOP Sketch 0 14. Estimated Date for MD n/a 46 feet 1016 feet n/a 2201 feet n/a Tubing Size: Plugs (measured): CIBP @ 2191' md Burst n/a n/a 2950 psi n/a 5320 psi n/a TVD nla 46 feet 1016 feet n/a 2201 feet nla Tubing Grade: 2-7/8 6.4 ppf Packers and SSSV MD (ft): J-55 N/A 13. Well Class after proposed work: Exploratory 0 / Development 0 15. Well Status after proposed work: Oil 0 Gas 0 Plugged WAG 0 GINJ 0 WINJ Commencing Operations: 16. Verbal Approval: Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Joe Polya Printed Name Joe Polya Title Sr. Staff Drilling Engineer Signature ~ \ ~ Phone 907-343-2111 Date 7,IÍVZOoÇ" tT \ - COMMISSION USE ONLY 7/22/2005 Date: Conditions of approval: Notify Commission so that a representative may witness Plug Integrity 0 Other: BOP Test 0 Mechanical Integrity Test D Form 10-403 Revised 11/2004 ./' COMMISSIONER Sundry Number: Location Clearance ~ RBDMS 8Ft ,JUI, ,~ f) 2005 APPROVED BY THE COMMISSION Date: ~ ~\I.J\L ~ ~ \J I~-' Junk (measured): N/A Collapse nla n'a 1370 psi n/a 4910 psi nla Tubing MD (ft): 2178 Service D /' o Abandoned o WDSPL o o 3(.)b-/~ ¥1~ Submit in Duplicate (' ( Pioneer Natural Resources Alaska, Inc. Plug and Abandon Procedure Pioneer Unit RL Smith #3 Well The RL Smith #3 well was drilled in November 2002 and has been shut in since July 2004. The well has a 12-3/4 inch conductor set at, 8-5/8 inch surface casing at 1016 feet and 5-1/2 inch production casing set at 2201 feet. The 8-5/8 inch casing string was cemented back to surface and subsequently topped off with 14 bbl of cement. The 5.5 inch casing string did not have cement returns during the primary cementing jog and the 8-5/8 x 5-1/2 inch annulus was later braidenhead squeezed with 90 bbl cement. The well is perforated at various intervals from 1674 to 2178 feet. A current schematic for the RL Smith #3 well is presented in Attachment 1. The completion in the RL Smith #3 well consists of a PCP stator hung at 2148 feet on 2- 7/8 inch tubing and a tubing tail at 2178 feet. No drive rods or rotor are reported in the tubing and stator, respectively other than a polish rod at the surface in the drive head. Pioneer Natural Resources Alaska, Inc. (Pioneer) proposes the following P&A procedure to plug the well in accordance with AOGCC regulations. Based on previous reports, the well can be killed easily with fresh water and BOP waivers have been granted by the AOGCC in the past for work on this well and other similar nearby wells. Pioneer hereby requests a BOP waiver for the operations described below. The proposed final RL Smith #3 well diagram is presented in Attachment 2. 1. Verify all permit paperwork is in place and give AOGCC 24 hour notice of intent to begin well work operations and intent to cement well and give AOGCC representative chance to witness same. Obtain BOP waiver before starting work. 2. Mobilize necessary equipment and personnel to location. 3. Remove hydraulic rod drive unit and polish rod from well. Check for pressure on casing or tubing and bleed off if necessary. Well should kill itself on water. 4. Rig up cementing lines on tubing and returns line on tubing/casing annulus. Test lines to 1500 psi. Verify ability to circulate down tubing and up annulus. 5. Mix and set Qbl cement plug in tubing and annulus by pumping down tubing and taking ret11fns out annulus into open top tame Shut in annulus when good cement returns at surface and squeeze away any remaining cement. Clean up equipment and save cement cleanup water for injection test at next well or dispose of in sanitary sewer. Haul cement returns to Pioneer Unit injection facility for later disposal in 1702-15DA WDW well. WOC. 6. Excavate around casing to minimum six (6) feet below existing ground level. Install guillotine saw on well and cut off well a minimum of 5 feet below grade or original ground level, whichever is deeper. Remove wellhead for backhaul to RL Smith #3 P&A procedure. doc Page 1 7/13/2005 D&J yard. Top off any unfilled annuli with cement. Collect photo documentation of surface cement and cutoff well. 7. Weld on well ID marker (114" x 24" x 24") with the following information bead welded on plate: Pioneer NRA APD: 202-182 Pioneer Unit RL Smith #3 API: 50-009-20024-00 Backfill well excavation and grade for positive drainage. Perform complete site inspection immediately after P&A operations if AOGCC inspector is available. RL Smith #3 P&A procedure.doc Page 2 7/13/2005 Attachment 1 : Pioneer Unit RL Smith #3 Current Well Schematic Well RL Smith #3 API 50-009-20024-00 Qtr/Qtr See 2 Pioneer Natural Resources Alaska, Inc. Twp 17N Rng 3W Size Weight Grade Thread Depth County Matanuska,Susitna State Alaska Casing 8-5/8 23 J-55 ST&C 1016 Field Pioneer Unit Country USA Casing 5-1/2 17 J-55 LT&C 2201 KB/GL 269/265 Tubing 2-7/8 6.4 J-55 8rd 2129 No. I Depth I Length I 00 I 10 Description 1 2189 2 4.24 N/A Alpha Tools Midget 1110,000 psi CIBP 2 2178 30.3 2.875 2.441 1 jt 2-7/8" Tail Pipe 3 2170 8 N/A N/A Perfs from 2170 - 2178, 4 spf and 23 gram 4 2148 11.51 2.88 N/A 30N045 pump wI torquestopper No-turn 5 2090 3 N/A N/A Perfs from 2090 - 2093, 4 spf and 23 gram 6 1933 4 N/A N/A Perfs from 1933 - 1937, 4 spf and 11 gram 7 1921 4 N/A N/A Perfs from 1921 - 1925, 4 spf and 11 gram 8 1824 3 N/A N/A Perfs from 1824 - 1827, 4 spf and 11 gram 9 1802 4 N/A N/A Perfs from 1802 - 1806, 4 spf and 11 gram 10 1724 4 N/A N/A Perfs from 1724 - 1728, 4 spf and 11 gram 11 1674 4 N/A N/A Perfs from 1674 - 1678, 4 spf and 11 gram PBTD 2191 TOC? 9 8 7 6 5 4 3 2 Modified by JRM 7/10105 " ~ Attachment 2: Pioneer Unit RL Smith #3 Proposed Final Well Schematic , ~I 12 Well RL Smith #3 API 50-009-20024-00 Qtr/Qtr Sec 2 Pioneer Natural Resources Alaska, Inc. Twp 17N Rng 3W Size Weight Grade Thread Depth County Matanuska, Susitna State Alaska Casing 8-5/8 23 J·SS ST&C 1016 Field Pioneer Unit Country USA Casing 5·1/2 17 J-55 LT&C 2201 KB/GL 269/265 Tubing 2-7/8 6.4 J·SS 8rd 2129 No. I Depth I Length I 00 10 Description 1 2189 2 4.24 N/A Alpha Tools Midget 1110,000 psi CIBP 2 2178 30.3 2.875 2.441 1 jt 2-7/8" Tail Pipe 3 2170 8 N/A N/A Perfs from 2170 - 2178, 4 spf and 23 gram 4 2148 11.51 2.88 N/A 40N006 pump w/ torquestopper No-turn 5 2090 3 N/A N/A Perfs from 2090 - 2093, 4 spf and 23 gram 6 1933 4 N/A N/A Perfs from 1933 - 1937, 4 spf and 11 gram 7 1921 4 N/A N/A Perfs from 1921 - 1925, 4 spf and 11 gram 8 1824 3 N/A N/A Perfs from 1824 - 1827, 4 spf and 11 gram 9 1802 4 N/A N/A Perfs from 1802 - 1806, 4 spf and 11 gram 10 1724 4 N/A N/A Perfs from 1724 - 1728, 4 spf and 11 gram 11 1674 4 N/A N/A Perfs from 1674 - 1678, 4 spf and 11 gram 12 Surface Well cutoff 5 feet below ground level. TOC? 9 8 7 6 5 4 3 2 PBTD 2191 Modified by JRM 7/10/05 ~. ,,< ..-~ FRANK H. MURKOWSKI, GOVERNOR -- ALASKA OIL A1WD GAS CONSERVATION COMMISSION 333 W. JT" AVENUE, SUITE 1 00 ANCHORAGE. ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 September 1, 2004 Shane Gagliardi Evergreen Resources (Alaska) Corp. P.O. Box 871845 Wasilla, Alaska 99687 ~ 0 ~~ J'6J- Re: Robert L Smith #3 Sundry: 304-334 Dear Mr. Gagliardi: Enclosed is the approved Application for Sundry Approval relating to the above- referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Enclosure =\'=I~GI~==I'~" RESOURCES(ALASKA)COR~ A Subsidiary of Evergreen Resources, Inc. August 26, 2004 Winton Aubert Petroleum Engineer Alaska Oil and Gas Conservation Commission (AOGCC) 333 West ih Ave. #100 Anchorage, AK 99501-3539 RECEIVED AUG 3 0 2004 Alaska Oil & Gas Cons. COITU,,"..iUiI Anchorage RE: 10-403 Submission for Re-Completions of the RL Smith #3 and Stromberg #2 Dear Mr. Aubert: Attached are 10-403 applications for sundry approval requesting the approval for conducting re-completions on the RL Smith #3 and the Stromberg #2. The work will consist of setting wireline retrievable plugs, perforating and fracture / stimulating two zones of the Tyonek formation in each of the two wells. The manual BOPE that was used for the initial completions will be used for this operation. Additionally, all connections will be threaded with some being / hammer unions as was the case with the initial completions of these wells. ",' In accordance wI 20 AAC25.285 section (h) and 20 AAC25.287 section (f), / alternate BOPE is requested. Evergreen will have a water truck on location for additional pressure control if necessary. If you have any questions, please feel free to contact me at 907-355-8569 or shaneg ~everg reenqas. com. ainc ., ......,,,. ,.,.,"'.... (' .., '.. '."",.~ . ..... Shane Gagliar Petroleum Engineer ORIGINAL 1075 Check Street, Suite 202 · Wasilla AK 99654 PO. Box 871845 · Wasil/a, AK 99687 · TEL 907,357.8130 . FAX 907.357.8340 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL 20 AAC 25.280 Operational shutdown U Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: Abandon U Alter casing 0 Change approved program 0 2. Operator Name: 1. Type of Request: Suspend U Repairwell 0 Pull Tubing 0 3. Address: Evergreen Resources (Alaska) Corp. Development Stratigraphic P.O. Box 871845 Was ilia, AK 99687 7. KB Elevation (ft): 8. Property Designation: 11. Total Depth MD (ft): 2300' MD Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): 1674 - 2178 Packers and SSSV Type: 277 ft KB (4' AGL) Private Total Depth TVD (ft): 2300' TVD Length N/A 416 1012 N/A 2197 N/A 'V,i6t\- € I sit ~ct?4 t /11 Jl- t)'-3 RECEIVED AUG 3 0 2004 PerforateL:J ~Iaska OW&'@asJCaM1~~~·ib.Œ Stimulate 0 Time ExtensioA~orage Other 0 Re-enter Suspended Well 0 5. Permit to Drill Number: 202-182 ,/ o o / Exploratory 0 o Service 9. Well Name and Number: 6. API Number: / 50-009-20024-00 10. Field/Pools(s): Robert L Smith #3 / Pioneer Unit (610500) PRESENT WELL CONDITION SUMMARY Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): 2191' MD 2191' TVD CIBP @ 2191 Size MD N/A 420 1016 N/A 2201 N/A N/A 12-3/4 8-518 N/A 5-1/2 N/A Perforation Depth TVD (ft): 1674 - 2178 Tubing Size: TVD N/A 420 1016 N/A 2201 N/A Tubing Grade: 2-7/8 6.4 PPF Packers and SSSV MD (ft): J-55 N/A 12. Attachments: Description Summary of Proposal L:J Detailed Operations Program 0 BOP Sketch 0 14. Estimated Date for Junk (measured): N/A Collapse Burst N/A N/A N/A N/A 1370 N/A 4910 Commencing Operations: 16. Verbal Approval: Commission Representative: 17. I hereby certify that tae fore. oing is true and correct to th e best of my knowledge, Printed Name S~ane I Title Signature ~ . I _ Ph " 907-357-8130 -- COMMISSION USE ONLY 2950 N/A 5320 N/A Tubing MD (ft): 2129 N/A N/A 13, Well Class after proposed work: Exploratory 0 Development D Service 0 15. Well Status after proposed work: Oil 0 Gas 0 / Plugged D Abandoned D WAG 0 GINJ D WINJ D WDSPL D 9/15/2004 Date: Conditions of approval: Notify Commission so that a representative may witness Plug Integrity 0 BOP Test 0 Mechanical Integrity Test Other: ptl-{ ~O 1+A-( 15. '1.iS {k J e.tN\..d £.,0 "~A:-c hÐl e Ú W P j¡,t.u.L I: {'o CLf f yo t/ ed, 0- 40'4 Contact Shane Gagliardi Project Engineer Date Sundry Number: 8/16/2004 36 <f~ 33/ o Location Clearance 0 1- S ~ ~l ,97 ( f) ¡ct./ t-~,I' ÍLc~ t~ "v-il ( t-tk- S~~2. COMMISSIONER ~~fi.. APPROVED BY THE COMMISSION ORIGINAL Date sui:¿tte v 't Re-Completion Procedure Pioneer Unit: RL Smith #3 API: 50-009-20024 Section 2 Township 17 North Range 3 West Matanuska Susitna Borough, Alaska Elevations: GL: 265 ft KB: 269 ft (4 ft AGL) Objective: Re-complete well and place on production test. History: This well was initially drilled November 2002. Cement was drilled out and a CIBP was set @ 2191 on 4/4/03. Eight perforated intervals from 1674 to 2178 were fracture stimulated down casing using nitrogen foam in four stages. The well was put on production / with disappointing results. Preparation: 1. AOGCC: Contact Winton Aubert (907-279-1433) 48 hours prior. 2. Tanks: Three manifolded Atigun frac tanks. 3. Water: Fill tanks w/ fresh city water. DJ will provide drivers for EWS water trucks. 4. Pumping Services: BJ Services from Kenai. 5. Wireline Services: Expro Wireline will perforate and set RBP's. 6. Workover Rig: EWS Wilson Super 38 rig #9619. 7. Tubing: Haul 20 jts from EVG Yard. Replace bad joints as necessary. Spill Prevention: Alaska Department of Environmental Conservation has strict regulations regarding spills. All equipment will have plastic liners underneath them. Liners will be run around wellhead. All water will be run to the pit. Casing and Tubing Data: / .I Size Weight ID Drift Collapse Burst Yield Capacity Capacity (in) (ppf) (in) (in) (psi) (psi) (klbs) Bbls/ft FUbbl Casing 5-1/2" 17 4.892 4.767 4910 5320 273 0.02325 43.015 Casing 8-5/8" 23 8.097 7.972 1370 2950 381 0.06370 15.699 Annulus 5-112 to 8-5/8 0.03430 29.155 Tight Hole: No information from this well may be shared with anyone outside of Evergreen Resources Inc. Procedure Completion Procedure 1. MIRU EWS #9619. a. POOH with tbg and stand back in derrick. / b. Install 5,000 psi Demeo frac valve on 5-1/2" casing. 2. MIRU Expro Wireline, BJ Services and Protechnics. a. Set Weatherford WRP @ 1,520'. ",".~ b. Pressure test plug to 4,500 psi.,) c. Perforate first stage (1 ,382' -1.!~91J) wi 4 SPF 23 gram charges 3. Pressure test Demeo frac vaIVe-a'nãlines to 5,000 psi. 4. Perform mini-frac using fresh water. a. Mini-frac data will be used for FracPro analysis. b. 50 bbl injection and step rate down. 5. Fracture stimulate first stage using FracPro analysis. a. 30# Linear Gel. b. Bullhead 500 gallons HCI. c. 50,000 Ibs 20/40 Ottawa sand tagged wi RA tracer @ 3-4 ppg. d. Max pressure is 4,500 psi. e. Rate 30 - 40 bpm. f. Collect minimum of 15 minutes falloff after frac. g. Flow back to tank if necessary. 6. RU Expro Wireline wi fullbore lubricator: a. Set Weatherfo~cj WRP @ 1,310'. ~ b. Perforate 1 ,(t52' - 1,159' KB, ,~...,8"ÞF and 23 gram charges. 7. RD Expro.'·· ,<.,...,,"...,.......... 8. RU BJ Services for second stage. a. Pressure test plug to 4,500 psi. b. Pressure test lines and frac valve to 5,000 psi. c. Mini-frac data will be used for FracPro analysis. d. 50 bbl injection and step rate down. 9. Fracture stimulate second stage using FracPro analysis. a. 30# Linear Gel. b. Bullhead 500 gallons HCL. c. 50,000 Ibs 20/40 Ottawa sand wi RA tracer @ 3 - 4 ppg. d. Max pressure is 4,500 psi. e. Collect minimum of 15 minutes fall off. f. Flow back to tank if necessary. 10. RD BJ Services. 11. Allow frac to heal for 3 hours. Begin to flow well back using flow back equipment wi bean choke. 12. Install and test BOP (pipe and blind rams). 13. Release plugs @ 1,520' and 1,310'. Clean out wellbore to 2,191' KB. 14. RU Expro and Protechnics. a. Log stimulated zones wi spectral gamma ray. 15. TIH w/ 2-7/8, 6.4 ppf J-55 tubing, no-turn tool, 7/8 rods and rotor, and 30N045 stator. Set pump @ 2,371'; one joint below bottom perfs @ 2,340'. a. Bury all pony rods. 16. Install drive head and engine skid. 17. Place on production test. ¡ I j- .... ¡ ..". ? ¡ r ~ ¡ 1 I I _I' . [ -- . .-....-- f "·d I ' . ! _,_'__~__m-+_ .~_... Ii 1 t ::·:~'f I ¡', 'I I --, --I r- ,.,.....-1 ,lltlr .,. . .¡ I ----~_--Li I ¡ I "---T-'-- . , 1 -=-~~I , r'; I I - t c c;l:¡ ~I - ¡' I ' : 1 .~~~~-¡-_..: ..~ -;, I - ~ ___ I ' _': ---.. --,-l .... t' i r t . - . ..¡ . '~."j'.,',.','..... ! I r I. " ~ . ., ;..~ . ..-~-.-k:~.. _d_, .. .~:.~-.-=--t--~'" ... ~, . . , - '.. ~ .. "n.,..._ ; i ~',.,..,.....,_.."J..,....,..,.:-,:,'.. ., '..... ... . , ' "-" ". r ~. _ ¡ : : : ,: '-- - ..,!;: ' " ~ ' , . - i .. : . :;..,,~+;. i ;. -->1+;-1 iL.~.._._ ~.J.-!,.-¡ 'j ,...- I . ... ·'·n. I ! ..,..'T"" 1 " Lt,_~_~~~+tit- : 1··..·:-·'1 :. . ç¡ -J_o", ..~, --. ¡I' '. :.;~; :':'::::':'+--;.. . I 'r~._ f . J :~!~" :~+ . . \ \ . ~'. "'--~-~-. ~~, ;-- \ I . ::~ -- . ¡. ': - ': '.. . . ~-- - ---r~ -,~_____~, ,.. .... -- ¡ I I,' : ~-i~~---T~:.--~~ ~ . '. . -,- I .. . , : . L.....~q~_...-., : .-, . "'~ .- -,....' - . ' , j - - . . , '. ~ ~,., t i--~____ !: '.' ~ .:.': ,'- - -. :~..:.:: .~--:.- l-r l~ '-1 : ¡It ~ '¡ I --------'--+-1;1. .. 1- '-.- .' j" . t I l ; ! r -----1--.-. - ~' _ -~ _( I 1 _ ':::--. ¡: .' _.1.. ~ r---+-~' - ï ---- - _m_ ! ' I i¡.~ '~~~ ~-~ I'..' .,. :, ~-=-r: ! i .,' I I '.. : I !.~ : . .~ :--;- , "', ¡ i I I...~ f ,I _._ :---.:... ,_l..~. .¡ ¡- _.'_ § _.._~' . I I '. , t . (¡ 4··, r 1____ __L I : e:.L1- ~ , '51"'".. . 1400 ·1· .,"t~. Proposed 1382-1391 50K 20/40 1350 1300 12bO .-=:t" ...- =---~. 1- ~ -... . .:;~:~;:t·, 1150 . I "--'- ..- '-"-'--"..1.0>.,1..1"; --! .- f~:~1~-} 3 ~I RL Smith #3 I~~:=.i~ -.- t---::: .~~~.-.----- . .--: ...~~~~;':~:~ r Proposed -;--_ ¡ ...._...._ . ---- -¡~::\>i~ 1152-1159 -: ¡---.'...'..----...- j~'7:;~f~. 50K 20/40 .:. -;: r :¡Z,):~} ~~ ¡.~: : , . -j{~~. ~' . .. r -------I··;.,·N 1200 ~1~1~y~~rt:-~b~~~~~~t --j j"! ::):::;1,..! I -~-·.·r.· ···1-·;·- ----],.'-+....-1--- : .""........... 'U""""""r '"'''''''' 1",,····,.."1.... . J T . . ¡ ! ) ) Current Well RL Smith #3 API 50~O~2002~OO::\':: I~GI~:::: 1'1 Qtr/Qtr Sec 2 Twp 17N Rng 3W Size Weight Grade Thread Depth County Matanuska,Susitna State Alaska Casing 8-5/8 23 J-55 ST&C 1016 Field Pioneer Unit Country USA Casing 5-1/2 17 J-55 LT&C 2201 KB/GL 269/265 Tubing 2-7/8 6.4 J-55 8rd 2129 No. I Depth I Length I 00 I 10 Description J4 ~ 1 2189 2 4,24 N/A Alpha Tools Midget 1110,000 psi CIBP 2 2178 30.3 2.875 2.441 1 jt 2-7/8" Tail Pipe 3 2170 8 N/A N/A Perfs from 2170 - 2178,4 spf and 23 gram 4 2148 11.51 2.88 N/A 30N045 pump wI torquestopper No-turn 5 2090 3 N/A N/A Perfs from 2090 - 2093, 4 spf and 23 gram 6 1933 4 N/A N/A Perfs from 1933 - 1937, 4 spf and 11 gram 7 1921 4 N/A N/A Perfs from 1921 - 1925, 4 spf and 11 gram 8 1824 3 N/A N/A Perfs from 1824 - 1827, 4 spf and 11 gram 9 1802 4 N/A N/A Perfs from 1802 - 1806, 4 spf and 11 gram 10 1724 4 N/A N/A Perfs from 1724 - 1728, 4 spf and 11 gram 11 1674 4 N/A N/A Perfs from 1674 - 1678, 4 spf and 11 gram 31 IE 11 31! Iæ 10 IE 9 IE 8 IE 7 IE 6 Iæ 5 4 ;æ 3 2 B & PBTO 2191 Modified by STG 7/3/03 ) ) Proposed Well RL Smith #3 API 5~O~2002~OO=\'=I~GI~== 1'1 Qtr/Qtr Sec 2 Twp 17N Rng 3W Size Weight Grade Th read Depth County Matanuska,Susitna State Alaska Casing 8·5/8 23 J·55 ST&C 1016 Field Pioneer Unit Country USA Casing 5·1/2 17 J·55 LT&C 2201 KB/GL 269/265 Tubing 2-7/8 6.4 J-55 8rd 2129 No. I Depth I Length I 00 10 Description ~ ... 1 2189 2 4.24 N/A Alpha Tools Midget 1110,000 psi CIBP 2 2178 30.3 2.875 2.441 1 jt 2-7/8" Tail Pipe 3 2170 8 N/A N/A Perfs from 2170 - 2178, 4 spf and 23 gram 4 2148 11,51 2.88 N/A 40N006 pump wI torquestopper No-turn 5 2090 3 N/A N/A Perfs from 2090 - 2093, 4 spf and 23 gram 6 1933 4 N/A N/A Perfs from 1933 - 1937,4 spf and 11 gram 7 1921 4 N/A N/A Perfs from 1921 - 1925, 4 spf and 11 gram 8 1824 3 N/A N/A Perfs from 1824 - 1827, 4 spf and 11 gram 9 1802 4 N/A N/A Perfs from 1802 - 1806, 4 spf and 11 gram 10 1724 4 N/A N/A Perfs from 1724 - 1728, 4 spf and 11 gram 11 1674 4 N/A N/A Perfs from 1674 - 1678, 4 spf and 11 gram 31 IE 13 12 1382 9 N/A N/A Proposed perfs 1382-1391, 4 spf and 23 gram 13 1152 7 N/A N/A Proposed perfs 1152-1159, 4 spf and 23 gram 31 IfË 12 ~ 1ìË11 ~ IE 10 ~ 9 Ie 8 IE 7 IE 6 IE 5 4 IE 3 2 íi Å PSTD 2191 ') STATE OF ALASKA '\ ALA5. _ \ OIL AND GAS CONSERVATION COMMI"JION REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon U Performed: Alter Casing D Change Approved Program D 2. Operator Name: Repair Well U Pull Tubing 0 Operat. Shutdown D Plug Perforations U Perforate New Pool D Perforate D 4. Current Well Class: Development D Stratigraphic D RECEIVED AUG 3,02004 Stiwmu~ate Du T. E4~~t¡[á $ &~W t!òtfS~ é~tnbission alver Ime Xfenslon Re-enter Suspended Well D 'Anchorage 5, Permit to Drill Number: Evergreen Resources Alaska Corp. Exploratory 0 Service D 6, API Number: 50-009-20024-00 202-182 3. Address: P.O. Box 871845 Wasilla, AK 99687 7. KB Elevation (ft): 254 ft KB (4' AGL) 9, Well Name and Number: Robert L Smith #3 8. Property Designation: 10. Field/Pool(s): Private Pioneer Unit (610500) 11. Present Well Condition Summary: Total Depth measured 2300 feet true vertical 2300 feet Effective Depth measured 2191 feet true vertical 2191 feet Casing Length Size MD Structural N/A N/A N/A Conductor 416 12.75 420 Surface 1012 8.625 1016 Intermediate N/A N/A N/A Production 2197 5.5 2201 Liner N/A N/A N/A Plugs (measured) 2191 Junk (measured) lVD Burst Collapse N/A N/A N/A 420 N/A N/A 1016 2950 1370 N/A N/A N/A 2201 5320 4910 N/A N/A N/A Perforation depth: Measured depth: 1674 - 2178 True Vertical depth: 1674 - 2178 Tubing: (size, grade, and measured depth) 2.875 J-55 2129 Packers and SSSV (type and measured depth) N/A N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Gas-Mcf Water-Bbl Casing Pressure 3 18 5 005 15. Well Class after proposed work: Exploratory 0 Development D 16_ Well Status after proposed work: OilD Gas 0 WAG D 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Oil-Bbl o o Tubing Pressure o o Prior to well operation: Subsequent to operation: 14. Attachments: Copies of Logs and Surveys Run Daily Report of Well Operations xx XX Service D GINJ D WINJ D WDSPL D Sundry Number or NIA if C.O. Exempt: 304 -139 Contact Shane Gagliardi Printed Name çyan, e Gagliardi Signature p~ ___ ,. Form 10-404 Revised 04/2004 Title Alaska Project Engineer Phone 907 -357 -8130 Date 8/6/2004 OR\G\NAL ~9F!> Submit Original Only alJ~ 3 1 "'410) \ M IJ -~',.. ',1,". t! STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator: Evergreen Resources Alaska Corp. 3. Unit or Lease Name: Pioneer Unit 8. Well Name and 9. API Number 10. Oil (0) 11. AOGCC Number: 50-XXX-XXXXX-XX-XX or Gas (G) Pool Code RL Smith #3 50-009-20024-00 G 610500 2. Address: 4. Field and Pool: Pioneer Unit (610500) 12. Final Test 13. Shut-In 14. Press. 15. S.H. Date Time, Hours Surv. Type Temp. (see instructions for codes) 07/27/04 1202 PBU 68 lo~- IßJ.. P.O. Box 871845 Wasilla, AK 99687 5. Datum Reference: 6. Oil Gravity: GL - 253 ASL 16. Depth Tool 17. Final TVDss Observed Pressure at Tool Depth 2183 871 N/A 18. Datum TVDss (input) 253 7. Gas Gravity: 0.649 19. Pressure 20. Gradient, Pressure at psi/ft. Datum (cal) 0.399 52 '- .,/ ,~ 21. All tests reported herein were made in accordance with the ap' Ie rules, regulations and instructions of the Alaska Oil and Gas Conservation Commission. I hereby certify that the fOregOi~nd correct to f my k owledge. Signature ~~p ~ Title Alaska Project Engineer Printed Name Shane Gagliardi Form 10-412 Rev. 9/2003 INSTRUCTIONS ON REVERSE SIDE Date 8/16/2004 Submit in Duplicate 360.00 60.00 270.00 / 55.00 - 180.00 50.00 RL Smith #3 PBU Test 5/20/04 - 7/28/04 Perfs: 1674 - 2178 900.00 810.00 720.00 630.00 540.00 ~ .--( ~ "(ñ 450.00 .s 90.00 90.00 Leaend (psiA): Pressure (DegF): Temperature - - - 85.00 80.00 75.00 -' 70.00 Ô 65.00 ~ -:!! 45.00 663.12 828.90 994.68 Elapsed Time (Hrs) 1326.24 40.00 1492.02 1657.80 0.00 0.00 1160.46 331.56 497.34 165.78 Ver 1.0 ti!-1I8·28·99 _~____·_n~___'_____·_ __. _"________._ _,_~_,_" _ _ .__ "._.____ Summary I Notes I - ..._-~- -------,--~_._--_."---_." - - -,,-_._-~._-'-.--'-_.__._----,-..- . ,,_u,' ,_ _.".._...,."~....__,_...,............,-,.. Activity . _.,~ªJ!J9..r..r!g.!º.fl~j~h~9Ek_º~_º9.E~.~~.~~,~I..',.......'" ,. ,..."... ""'" ,..."'_~... ',. 0" ,..... ...,.,...,'...,..,......._.....,."._..,.....,..._".........._..,.... ~.I'3~.~yyª~9.ªJª~Ia~~g§1~~_í3T!l.P!~{~~Pí3gtg1~Q)fºrí3.Qí3!y~i~~. .. '.'.,.., . " ......""'._........,...... .,._..,......_...._... POOH wi 85 tl8" 1-1/4" 16' polish rod and 006 insert pump. Stand back in doubles. ,Ri9o.X~rtgp~.II.tbg. SOON. Start End Duration 0800 1300 4 ,., """1"" ., ' . 'I.n'" ,""'''~'''' ,. 'Yo" ._ ,- .,-,. 1300 1500 2 1500 1600 1 1600 1800 2 124hr Forecast I T esti ng I No I Last Safety Meeting Date POOH wi rods Well Total ($) I I $277,322.00 IAccldent (y/n) Current Activity Dally Total ($) $1,350.00 Contractor I po# I supervlsor Gagliardi Evergreen Resources Alaska Field Pioneer Istate IAlaska Country l USA I Cou nty NO 13 TWP 117N Well I R L Smith Qtr/Qtr NW/NW Isec 12 operator I Mat-Su Daily Completion Report lEnd 15/19/2004 IAPI 150-009-20023-00 Rng 3W I Report No 176 I Begin 105/19/04 ) ! ) Ver 1.0 ÜI.1/8·28·99 Summary t ....-. ._,,~,,-_.~._-- ~ . . _.. . __4 _.,._. _ _......___.,._, ..'~............_.,._..,_ ...__.._.,.. ..'_,W_ ..._. _"._._.,. _",__._..,,,._.,~~._,"._____,. ..".___~.___ ,._~~- ""'-."'''-~-'"'''''-~''''.'.'-'. .......,.....-...-...-.,.... ", .PQ9.H.'!"/ .~?. j!~..?,~!{ª'_'JR9...,~.~.~.! .~Jpp!~"".~.~.g".p.,~.~p._.~~~~"I.~!Iy._º~tºt~º!~.~,.~...._.._.__.,. "._.'.......__.......__...".....__._."..'_ .. ,M.ª~_~..~P .!~~.t,.~_§s~l11þly.(?'.p~.Œ.~uþ?'§~þ.ªQ9_.Þ.yJLp!~.g):Pº1/\f~r~p.gªyg~@ 11 :08. Program 9,~.~9~.fºE, ~?~.~~.~.ªrTlpl~.r~.~~ fº,~.?_~..QE~~Q.~__~º..~~~~ª!!!2!~.Eª~~.fº!.~~_~ªy~:_,.,_._...___.._.._..._....,...._,..,_.,_........._ ,., '._0.... . .',.,'".., .!,!~_~(,,§.!..J.~~._?:?(.ª"..'!þ'g~. §.~ªtn iEP.J~!,P~!!1.P,þ.þ,J,ª_n.,9.J_~~l, "ª.~~~.~.ÞJ,y-:_~.ª~~..t.~~_!.ª,~.~~!!!~.~Y"".~.?1.ª}:_·_,. _____......., Switch over to run rods. 1330 1500 1.5 ,....', .II.~.I/\fI.ª~!!ª".Eºq~.1:.1!~n,.~~~pºl.i~~..rºgª~q.~g~ºº~i.n.s..~~'pY~P~. ,~tª~p~~p@.1~T~.~~:__... 1500 1600 1~ªJ,tJº~_.YY."~!I~º._e,u.~.P,Y_e:_.~º.~9..~.yyê__~,~§_1,~_~.2._.º~ªE~)!_t.~.:.,.. ' , 0800 1100 3 ....\",., ,.., ."._~.."" .", .../0 "_'~''"' ."., 1100 1130 0.5 ."".... 1130 1330 2 Activity End Duration Sta rt 24hrForecast Testing I No I Last Safety Meeting Date TIH wi rods Well Total ($) I I $278,672.00 Accldent (y/n) Current Activity Dally Total ($) $1,350.00 Contractor I po# I supervlsor Gagliardi Daily Completion Report I End 15/20/2004 IAPI 150-009-20023-00 operator Rng 3W county Mat-Su NO 13 TWP 17N IReport No 177 Begin 105/20104 Well r R L Smith Qtr/Qtr NW/NW sec 12 I Evergreen Resources Alaska Field I Pioneer state IAlaska Country IUSA ) Ver '.0 ÜI-1I8·28·99 --.- --. ._.. -_.---- . -_._. ..--,---_._.._,~- --~._,-,-,,~. ,- - - --~-_..__...._-_.'......_-- - --.---------.--.- '-..-..","",,-.-.. .,- .-. ''''.'~~-'--'''' -,..._,-,~- - -,~. '. ....- ~"...~-,,--,.., -~._~--.,.-... - --.".'''.--.-.".- Summary I Notes I Actlv Ity ..Mt~~__~W~,.~ª.§Jª-:...B~_~ºy'~griY~h~.ª_(a.~.9."B~,.!º.P'º-º.~,v.{!Eº.º~.. a.Q.q,JªI~h~..rnººY'{Q.·,. "....., ,"....,'...._... ,_... POOH wI 8!5...[ºq~,1~~.:PºQyL1J§:1~.Y4".pºI.i.~h.rº,ºª~q.4.9~ºº~p~rllP~Rig over to POOH w/ tbg" _. '.. ..~-º ºJj .yy(. §.~_jt~?:?(ª". t.b9.~~ªt. ~ip'p'I.~,.ª ~q.P~.rll.pþ.þl.,.f~I!.~ª.¡!U.. a.Q.9 t~~t.ª~~~~.þl.l~....... ,..........". ..........,....._. TI~'^'I~!jts 2-7/8" tbg, seat nipple, pump bbl and tail jt. Land tbg @ 2179', Switch over to run rods. TI~'^'(pºli~hrººfº~~~iy~h~.ªq.plagement. Well is shut in. ., ROMO EWS~6~.~.tg.\fI{ª,~illªyª.~q.: 124hr Forecast 1 Shut in for eval 1 No Last Safety Meeting Date Evergreen Resources Alaska Field Pioneer Istate Alaska Country I USA supervlsor Gagliardi ) Retreiving Gauges Well Total ($) I $280,022.00 Accldent (y/n) $1,350.00 Current Activity operator I Mat-Su county Daily Completion Report lEnd 17/28/2004 IAPI 150-009-20023-00 Rng 3W INO 13 TWP 17N Duration 2 2 1.5 1.5 0.5 0.5 1 Dally Total ($) 0900 1100 1230 1400 1430 1500 1600 0700 0900 1100 1230 1400 1430 1500 End Start Contractor I po# I Well IR L Smith Qtr/Qtr NW/NW Isec 12 Report No 178 IBegin 107/28/04 =\'=I~GI~==I" RESOURCES (ALASKA)COR~ ) A Subsidiary of Evergreen Resources, Inc. ) j April 20, 2004 Winton Aubert Petroleum Engineer Alaska Oil and Gas Conservation Commission (AOGCC) 333 West 7th Ave. #100 Anchorage, AK 99501-3539 RE: 10-403 Submission for Pressure Build Up Tests for Pilot #1 Dear Mr. Aubert: Attached are 10-403 applications for sundry approval requesting the approval for conducting pressure build up tests on Pilot #1 consisting of the DL Smith #1, the Stromberg #2, the RL Smith #3 and Cornhusker #4. The work will consist of round tripping the PC pump in each well-ruhning a test assembly below the pumps. The wells will be produced until a stable fluid level i§ achieved. The wells will be shut in for build up. After the build up portion of the' test is complete, the wells will be shut in pending analysis of the data. Due to the low csg pressures in accordance wi 20 AAC25.285 section (h), alternate BOPE is requested. Evergreen will have a water truck on location for pressure control if necessary. Casing pressures are typically between 7 and 30 psig. Once the pumps are shut down, the wells will load up; and casing pressure will drop to zero by the time the work is to commence. If you have any questions, please feel free to contact me at 907-355-8569 or shaneg@evergreengas.com. Sincerely, 12_ JaJ~- Shane Gagliardi Petroleum Engineer RECEIVED APR .2 I 2004- Alaska Oil & Gas Cons. Commission Anchorage 1075 Check Street, Suite 202 . Wasil/a AK 99654 PO. Box 871845 . Wasil/a, AK 99687 . TEL 907.357.8130 · FAX 907.357.8340 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL 20 MC 25.280 ) \;JL,A f.)~ t /2.2-( 2,004- CJ-/2-1 /~ 1, Type of Request: Abandon 0 Suspend 0 Alter Casing 0 Repair Well 0 Change Approved Program 0 Pull Tubing 0 2. Operator Name: Evergreen Resources Alaska Corp. 3, Address: P.O. Box 871845 Wasilla, AK 99687 7. KB Elevation (ft): 254 ft KB (4' AGL) Operation Shutdown 0 Perforate 0 Variance 0 Annular Disposal 0 Plug Perforations 0 Stimulate 0 Time Extension 0 Other [8J Perforate New Pool 0 Re-enter Suspended Well 0 4. Current Well Class: 5. Permit to Drill Number: /' Development 0 Exploratory [8J 202-182 6. API Number: , ' Stratigraphic 0 Service 0 50- 009-20024-00 /' 9. Well Name and Number: Robert L Smith #3 /' 8. Property Designation: Private 10. Field/Pool(s): Pioneer Unit (610500) 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): I Total Depth lVD (ft): Effective Depth MD (ft): I Effective Depth TVD(ft): I Plugs (measured): Junk (measured): 2300' MD 2300' TVD 2191' MD 2191' MD CIBP @ 2191 N/A Casing Length Size MD TVD Burst Collapse Structural N/A N/A N/A N/A N/A N/A Conductor 416 12-3/4 420 420 N/A N/A Surface 1012 8-518 1016 1016 2950 1370 Intermediate N/A N/A N/A N/A N/A N/A Production 2197 5-1/2 2201 2201 5320 4910 Liner N/A N/A N/A N/A N/A N/A Perforation Depth MD (ft): I Perforation Depth lVD (ft): I Tubing Size: Tubing Grade: Tubing MD (ft): 1674-2178 1674-2178 2-7/8 6.4 ppf J-55 2129' Packers and SSSV MD (ft): Packers and SSSV Type: N/A N/A 13. Well Class after proposed work: Exploratory [8J Development 0 Service 0 12. Attachments: Description Summary of Proposal [8J Detailed Operations Program BOP Sketch 0 14. Estimated Date for ¡I'/ Commencing Operatio s: 12 16, Verbal Approval: Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Date: 15, Well Status after proP/osed work: Oil 0 Gas [8J Plugged 0 WAG 0 GINJ 0 WINJ 0 Abandoned 0 WDSPL 0 Contact Shane Gaqliardi Printed Name Shane Gaqli::t ~ ...... Signature 4 ~ --""./ . Title Petroleum Enqineer Phone 907-355-8569 Commission Use Only Date 4/14/04 Sundry Number: ..30'1-/3'1 ,/ I Conditions of approval: Notify Commission so that a representative may witness Plug Integrity 0 BOP Test 0 Mechanical Integrity Test 0 Location Clearance 0 goPE t~ CL-pp~~ÇEIVED ~ APR 2 1 2004 Other: Pev 20 AA c.. l S L. S C; L h ") I c~l tu Vltl..-te.. COMMISSIONER BY ORDER OF THE COMMISSION Alaska Oil & Gas Cons. Commission Anchorage Date ~ 1lf ~b: ~d~icate ORIGINAL IBB?\~B@ ~ff.:;'P¡ WWUII\\1h,~ ¡¡¿"\fr' :,~" ~.... ,fi';')!~ ~~i!r' l~[r ;!\ (;t:1 J ~. :~,;,¡ ~ll4J ) ) Proceedure for Pressure Build Up Tests Pilot #1 1. Get gas sample from each well and have analyzed. 2. Program pressure gauges a. Program gauges for 30 sec sample rate as memory allows b. Test batteries 3. Pull well head sheds 4. MIRU EWS Rig #9619. Lay down plastic and duck ponds. 5. POOH wI polish rod, rods and rotor a. Stand rods back in doubles 6. Release no-turn 7. POOH wI 2-7/8 tbg, PC pump and no-turn 8. Make up test assembly; place gauges in 4' sub wI bull plug below perforated sub a. 2' Perforate sub b. 4' sub wI bull plug c. 5000 psi gauges 9. TIH wI test assembly, no-turn, pump and 2-7/8 tbg a. Bring 10 extra jts of 2-718 tbg to location to replace bad jts if encountered 10. Land pump below bottom perfs listed in the table below a. RL Smith i. 1 jt tail pipe; very little rat hole ii. land gauges where tail pipe was landed @ 2179' / 11 . Set no-tu rn 12. TIH wI rotor and rods 13. Tag tag-bar and space out pumps @ 16 inches 14. Start pumps @ RPM's listed below 15. Place wellhead sheds back over well heads 16. Produce wells until stable fluid level is reached 17. Shut wells in at surface 18. Shoot fluid levels daily 19.At end of pressure test (4 months), POOH wI 2-78 tbg, pump, No-turn, rods and rotor. 20. Down load gauges and evaluate 21. Shut wells in Well Name DL Smith #1 Stromberg #2 RL smith #3 Cornhusker #4 Tbg landed 2276 2259 /' 2179 2379 Top Peri 1708 1695 1674 1832 Btm Perf 2220 2208 2178 2340 Pump RPM 150 150 200 300 :\f: I~G I~:::: 1'1 RESOURCES (ALASKA) CORP. A Subsidiary of Evergreen Resources, Inc. API Permit to Drill # Survey Type Survey Date Conductor 12-3/4 Surface 8-5/8 PBTD WellTD Measured Depth 250 300 500 1000 1500 1750 2000 2070 2465 2491 2500 3000 3250 3500 3665 3680 Cook #1 Lowell #2 Bering #3 Baranof #4 DL Smith #1 Stromberg #2 RL Smith #3 Corn husker #4 50-009-20022-00 50-009-20021-00 50-009-20019-00 50-009-20020-00 50-009-20026-00 50-009-20025-00 50-009-20024-00 50-009-20026-00 202-180 202-179 202-177 202-178 202-184 202-183 202-182 202-181 Sure Shot Model A Sure Shot Model A Sure Shot Model A Sure Shot Model A Sure Shot Model A Sure Shot Model A Sure Shot Model A Sure Shot Model A Inclination Inclination Inclination Inclination Inclination Inclination Inclination Inclination 12/5/2002 11/6/2002 12/5/2002 11/3/2002 12/5/2002 12/5/2002 12/5/2002 12/5/2002 245 200 275 300 320 360 420 415 384 381 400 513 1038 1020 1016 539 3670 3238 3688 3697 2487 2492 2191 2577 3740 3750 3753 3750 2510 2510 2300 2600 '-"' 0.5 0.5 1 5 8 14 10 10 14 9 10.5 11 9 14 11.5 14 13 14 Surveying Compnay Patterson Wireline \) \; c..;_.\. Q=\~~~ Signature Survey Conducted By: Pat Patterson Owner ~K~\\"~S 2 0 7 4 3.5 0.5 4 7 13 14 5 6 8 13.5 14 10 8 10 14 14 14 11 14 14 14 10 9 8 q~)<2-ù3 Date «:;EI\/EO .. 6 "(I f', 7., SEP I ' L'JV'v ?Ü~~:~~-a A~ Cçna. (;()¡r!m¡z-~ion í~nG1l0rag$ =\'=I~GI~==I'~ ) RESOURCES (ALASKA) COR~ A Subsidiary of Evergreen Resources, Inc, ) July 9,2003 Winton Aubert Petroleum Engineer Alaska Oil and Gas Conservation Commission (AOGCC) 333 West ih Ave. #100 Anchorage, AK 99501-3539 RE: Completion Reports (Form 10-407) Pioneer Unit - DL Smith #1, Stromberg #2, RL Smith #3, Cornhusker #4, Cook #1 and 1702-14CC Dear Mr. Aubert: Attached are the 10-407 forms for the following wells, listed with the wells are the corresponding 10-403 numbers issued for the completions. The wells are currently producing, but are still in the testing phase. All gas is being vented at this time. Well RL Smith- DL Smith - Strom berg - Cornhusker - Cook - 10-403 # 303-096 303-109 303-095 303-099 303-098 If you have any questions, please feel free to contact me at 907-355-8569 or shaneg@evergreengas.com. 2iø· Shane Gagliardi Petroleum Engineer ~ I' T I '" r: r I ORIG\NAL 1075 Check Street, Suite 202 · Wasil/a AK 99654 PO, Box 871845 . Wasil/a, AK 99687 · TEL 907.357.8130 · FAX 907.357,8340 ) ) STATE OF ALASKA ALASKA Oil AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG N/A feet MD Zone-4 19. Water Depth, if Offshore: 20. Thickness of Permafrost: N/A 18. Directional Survey: YesD Not8:1 N/A feet MSL 21. Logs Run: Compensated Density Neutron Log; Induction; Gamma Ray; Cased Hole Neutron; Dual Spaced Cement Bond Log; Mud log, Inclination Survey 1 a. Well Status: OilD Gast8:1 PluggedD AbandonedD SuspendedD WAGD 20AAC 25.105 20AAC 25.110 GINJD WDSPLD No. of completions _ Other 5. Date Comp., Susp., or Aband.: 6/18/03 WINJD 2, Operator Name: Evergreen Resources Alaska Corp. 3. Address: P.O. Box 871845 Was ilia, AK 99687 4a. Location of Well (Governmental Section): 6. Date Spudded: 10/7/02 7. Date TD Reached: 11/13/02 Surface: NW/NW Sec 2 Twn 17N Rng 3W, Seward Meridian Top of Productive: Same 8. KB Elevation (ft): 254 ft KB Horizon: Same 9. Plug Back Depth (MD + lVD): 2191' KB MD Total Depth: Same 4b. Location of Well (State Base Plane Coordinates): Sec 2 Twn 17N Rng 3w Surface: x- 3272' FSL y- 606' FEL Zone-4 10. Total Depth (MD + lVD): 2300' KB MD 11. Depth where SSSV Set: TPI: x- Same y- Same Zone-4 TotalDepth: x- Same y- Same 1 b. Well Class: Development D Exploratory t8:I Service 0 Stratigraphic Test 0 12. Permit to Drill Number: 202-182 13. API Number: 50-009-20024-00 14, Well Name and Number: Robert L Smith #3 15. Field/Pool(s): Pioneer Unit 16. Property Designation: Private 17. Land Use Permit: N/A 22. CASING, LINER AND CEMENTING RECORD CASING WT. SETTING DEPTH MD SETTING DEPTH lVD AMOUNT SIZE PER GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED FT. 12-3/4 36 N/A 0 420 0 420 16 30 sx Concrete 8-5/8 23 J-55 0 1016 0 1016 11 74 bbls Class A 5-1/2 17 J-55 0 2201 0 2201 7-7/8 75 bbls Class A 23. Perforations Open to Production (MD + lVD of Top and Bottom Interval, Size, and Number; if none, state "none"): 2170-2178, 0.45" 23 gram, 32 holes @ 4 spf 2090-2093,0.375" 11 gram, 9 holes @ 4 spf 1933-1937,0.375" 11 gram, 12 holes @ 4 spf 1921-1925,0.375" 11 gram, 12 holes @ 4 spf 1824-1827,0.375" 11 gram, 9 holes @ 4 spf 1802-1806,0.375" 11 gram, 12 holes @ 4 spf 1724-1728, 0.375" 11 gram, 12 holes @ 4 spf 1674-1678,0.375" 11 gram, 12 holes @ 4 spf 24. SIZE 2-7/8 TUBING RECORD DEPTH SET (MD) 2151 PACKER SET (MD) N/A 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED ** See Attached ** 26. Date of First Production: 18 June 03 PRODUCTION TEST Method of Operation (Flowing, Gas Lift, etc.): PC Pump Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: I Gas-Oil Ratio: 18 June 03 Test Period .. N/A N/A Flow. Tubing Casing Pressure: Calulated .. Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API (corr): Press: 24-Hour Rate N/A N/A 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas, or water (attach separate sheet, if necessary). Submit core chips; if none, state "none~-::~(~:~~:~~::::,,:, ''": . . -, ", " "'--': None r ."1.,, L,.,.,-",¡ ; ; ~~Zd t , '/~ J2¿ED , ! .--1.~L__, ,,,'.....". .,--,.~,"""",~ Form 10-407 Revised 4/2003 OR I GO~f\rA:REVERSESIDE 8 20.01 l) ~ R8DMS BFL SEP NAME ) GEOLOGIC MARKERS MD I lVD ') 29. FORMATION TESTS Include and briefly summarize test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". 28. None None 30. List of Attachments: Daily Completion Reports; Treatment Reports; all above listed logs 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Shane Gagliardi Title Petroleum Enqineer Phone 907-355-8569 Printed Name ~e Ga~ia;ey), Signature ~~..-~ Date 7/3/03 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 a: Classification of Service Wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-In, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None", Form 10-407 Revised 4/2003 ORIGINAL Attachment for Block 25 DEPTH INTERVAL (MD) 2090-2178 1921-1937 1802-1827 1674-1728 Braidenhead cmt squeeze Form 10-407 Revised 4/2003 } ) AMOUNT AND KIND OF MATERIAL USED N2 Frac w/ 72,500 Ibs 20/40 Ottawa N2 Frac w/67,000 Ibs 20/40 Ottawa N2 Frac w/ 46,000 Ibs 20/40 Ottawa N2 Frac w/ 61,000 Ibs 20/40 Ottawa 90 bbls class A 101 ~~~:,i_ îl"I:~ !:ill ;:!ti I,,! ¡~! ~ !~~:I!¡ It,: -~I- ~ ,11,' ~ ¡llll ~¡I! ì lil;;1 ~~: illl,.:".,! 'I":!I :I'i_ filii ':¡ll1 ,\,,11:.1 ),I¡ ;i\¡ ~ 11:[ -1,·,1,','.:'·,1,': ìll! 1;1'1" 'i: j~ ~~I~'~ '"iW ª' 1:.1'1.\ Iæ i~'IJ~ 11 ¡Ii': ,Ii') §ill \1::1 -IE 10 ª'-1.l....,J.i IIæ 9 31 'll IE 8 . ¡~ I¡¡:~ ¡,.;,¡ ~ ..~ ~ ~ ~ - " j íì ~ PBTD 2191 ) ) Current Well RL Smith #3 API 50-009-20024~O=V=I~GI~ == 1'1 Qtr/Qtr See 2 Twp 17N Rng 3W Size Weight Grade Thread Depth County Matanuska, Susitna State Alaska Casing 8-5/8 23 J-55 ST&C 1016 Field Pioneer Unit Country USA Casing 5-1/2 17 J-55 LT&C 2201 KB/G L 269/265 Tubing 2-7/8 6.4 J-55 8rd 2129 No. I Depth I Length I 00 I 10 Description 1 2189 2 4.24 N/A Alpha Tools Midget 1110,000 psi CIBP 2 2178 30.3 2.875 2.441 1 jt 2-7/8" Tail Pipe 3 2170 8 N/A N/A Perfs from 2170 - 2178, 4 spf and 23 gram 4 2148 11.51 2.88 N/A 30N045 pump wI torquestopper No-turn 5 2090 3 N/A N/A Perfs from 2090 - 2093, 4 spf and 23 gram 6 1933 4 N/A N/A Perfs from 1933 - 1937,4 spf and 11 gram 7 1921 4 N/A N/A Perfs from 1921 - 1925, 4 spf and 11 gram 8 1824 3 N/A N/A Perfs from 1824 - 1827, 4 spf and 11 gram 9 1802 4 N/A N/A Perfs from 1802 - 1806, 4 spf and 11 gram 10 1724 4 N/A N/A Perfs from 1724 - 1728, 4 spf and 11 gram 11 1674 4 N/A N/A Perfs from 1674 - 1678, 4 spf and 11 gram 7 6 5 4 3 2 Modified by STG 7/3/03 \ ,) I Report No 11 I Begin In ~ 11-02 0600 Well IRL SMITH ¡NO 13 Qtr/Qtr sec 12 Twp T17N Target Planned TD(ft) Daily Drilling Report lEnd 11-12-020600 IAPI 150-009-20024-00 operator Rng R3W Icounty MAT-SU 1# IRig Name fEWS RIG #1 Isupervisor D.WAL TERS EVERGREEN RESOURCES ALA~ Field PIONEER UNIT state ALASKA Country ¡USA Project fPIONEER UNIT Current Depth (It KB) 1937' Current Activity TIH,COTB AFE I I Daily Total ($) 184850 Well Total ($) I 1184850 Conductor 1123/4" @ 420'ISUrf Csg. Int Csg Spud Date (MM/DDIYYYY) 110-11-02 I End Date (MM/DDIYYYY) 124hr Forecast DRILL SURF T/1020',RUN & CMT SURF I Accident (y/n) I N I Last Safety Meeting Date I Prd Csg I I Driller TD (It KB) I Bottom Csg (It KB) Start End 0900 1200 1200 1300 1300 1400 1400 1830 1830 2000 ?OOO ?130 2130 0600 Duration Activity 3.0 MIRU EWS RIG #1 1.0 TIH W/11", TA~ @?'~Q' 1.0 DRLG CMT F/290' T/420' 4.5 DRLG 11"HOLE F/420' T/93T 1.5 CIRÇ~º~E,.Ç~.E~~,TººH 'ýV/1J," 1.5 MIRU P^TTERSo.N WIR~LI~Ç,LOC QI.I,INTP~VA~.RP¥9 WL 8.5 , ,NU DIVERTER,WAIT qN ORDERS & C~T Notes I Summary I Ver 1.0 ÜI·1/ 8-28-99 Planned TD(ft) Daily Drilling Report lEnd 111-13-020600 IAPI 150-009-20024-00 operator !Rng R3W Icounty MAT-SU I # ¡Rig Name EWS RIG #1 supervisor D.WAL TERS IReportNo 12 Begin 11-12-020600 Well IRL SMITH NO 13 Otr/Otr Isec 12 Twp IT17N Target EVERGREEN RESOURCES ALA: Field PIONEER UNIT Istate ALASKA Country l USA Project PIONEER UNIT Current Depth (ft KB) ! 1940' Current Activity DRLG 7 7/8"HOLE AFE I DailY Total ($) 50920 Well Total ($)! 1235770 Conductor 1123/4" @ 4201SUrfcsg. 185/8",23# @ 1016' IntCsg Spud Date (MM/DDIYYYY) 110-11-02 I End Date (MM/DDIYYYY) Start End Duration 0600 0800 2.0 0800 0930 1.5 0930 1330 4.5 1330 1400 0.5 1400 1530 1.5 1530 1600 0.5 1600 2200 6.0 2200 2300 1.0 2300 0600 7.0 Notes I Summary I 124hrForecast IDRILL 7 7/8" HOLE I Accident (y/n) I N I Last Safety Meeting Date I Prd Csg I I Driller TD (It KB) I Bottom Csg (" KB) Activity TIt! WJ11",CLEAN .OUT BRIDG~ @ .8?0',DR.I~~.J J"~ºq~f 1ª,~!.TI1 029' TOOH W/11" RUN 34 JTS8 5/8',2~#K~55STÇ.ÇS,~!YVASH Dº\J\fN F/971 , T/101~',$êT@,1016' R~ EWSÇfv1TR$P.~fv1P,"60 ~êLS CrviT @~5~ª~"pI?PVV/62 BBL$H2q,.ÇtRÇ 1/2, I?~~ Ç~T! ~,~.~9 DOW~@ .1~OO.~RSANNU~Y$FALLlNG BAC~ WOC MIX. & PUM.P DOWN ANNVLUS14,1?ª~§1?ß~ Ç¥.T,Tº~P~PQ.~T. wac MECHANIC TO REPAIR BOOSTER ELEC BREAKER . . ' . '."'-,. PRILL5'Crv1T,DRLG 7 7/~"~OL.~ F/192.9'.:r/1ª49' Ver 1.0 nl.1/ 8-28-99 '~ "" } Planned TD(ft) Daily Drilling Report lEnd 111-14-020600 supervlsor D.WAL TERS lAP I 150-009-20024-00 operator EVERGREEN RESOURCES ALA: Field PIONEER UNIT Rng R3W Icounty MAT-SU state ALASKA Country ¡USA I # ¡Rig Name EWS RIG #1 Project PIONEER UNIT I Report No 13 I Begin 111-13-02 0600 Well IRL SMITH ¡NO 13 Qtr/Qtr sec 12 Twp T17N Target Current Depth (II KB) 11940' Current Activity RDMO AFE I DaiIYTotal($) 64350 Well Total ($) 1300120 Conductor 1123/4" @ 420'ISUrf Csg. 185/8",23# @ 1016' Int Csg Spud Date (MM/DDIYYYY) 110-11-02 I End Date (MM/DDIYYYY) Start End Duration 0600 1330 7.5 1330 1530 3.0 1530 1730 2.0 1730 2030 3.0 2030 2330 3.0 2330 0100 1.5 0100 0130 0.5 0130 0230 1.0 0230 - 0300 0.5 0300 0430 1.5 0430 0615 1.75 Notes I Summary I 124hrForecast MOVE TO THE STROMBERG #2 Accident (y/n) I N I Last Safety Meeting Date I Prd Csg I I Driller TO (It KB) I Bottom Csg (ft KB) Activity PRLG7 7/8" F/194q' T/2300'HIG~ Ç/RÇ PRE.S$UREd&TORºU~ ÇIRC HOLE,TQo,H _, . MI~~ PATTERSON WIRELlNE,AT.~Erv1PT TC) LOG,STOPPED @ 1600'. RUÇ,SG TOº~$!RlJN.~1/2",17#,.K~55,~ TCCS<.?Jo. 1629' WAIT ON EWS CMTRS TO PUMP VýA$HqUT RRIDGE. @..1.62.D',1785',$ET 9PE~[DeIP[@1832' , AIIErvlPT T9LQG,,$TO,PPEp@ 185..0: \^J~$HgqWN 51 /2"Ç~<:;ßRID,ª~S@185º', 1 ª~Q't$.E.T@ 19??' , ATTEMPTTºd~OGßTºpPED .@1 ~54' WASH DOWN 51/2"CSG,BRlpGES@195.4',210',SOLlD FIL~ F/2134' T/2205',LAND CSG@ 2200~961 ~0Ç'~T~$,.PUMP·1 0 Bä~$'H29,?O Bª~.§ G~~/º'r'E.:?,?:ªª~,$H?ºJ5.BB~s·CMT@1}.j~! " , . " , pISP~Y¡5.0ªI3LSH?.D,PLUG DOWN@Q615 HR8.,pID NOT CIRC CMT TO. §U.RFACE, Ver 1.0 Ü(·118·28·99 ì\ I Report No I IBegin I 02/04/03 Well I RL Smith INO 13 Qtr/Qtr I Isec 12 TWP 117N Contractor EWS Unit #9619 Current Activity PO# Dally Total ($) $8,442.00 I Start 0700 Notes Summary I End I Duration 1600 9 Daily Completion Report I End I. 4/4/2003 IAPI 106-009-20024-00 [Rng 3W ¡county Drilling out cement Well Total ($) I L $9,722.00 ) ¡supervisor MiChael Polley operator Evergreen Operating Corpor, Field I I Matanuska,Susitna Istate IAlaSka Country I USA 124hr Forecast I Set C I B P ¡ACCident (yln) INo Last Safety Meeting Date I Activity TIH Vi.ith used 4 3/4" bit, 2.7/8" mo.t9r an~.tþg., T a.g c~rl1~n.t ,@.?º.ª61~.ºr.il!.~o.~.g~f!1~n~.?q~6,~ to 2191'. Displace hole with cIeª~fr.e~~~ª!er w,it~bactericid~. T9H~it~.tþg..a.nq tools. Clean out reverse tank. Rig.d0'Nn. Police location. Mov~_eq~iprT1~~t toya.rq: COST ESTIMATE; RIG Kill Trucks Wa.ter Truçks; Tubing Rods Wire line work Down hole tools Tool Hand Cement pump SUPERVISION MISC Down hole motor and man TOTAL J1, !?O.OO $160.00 $0.00 $0.00 $1,500.00 , $600.00 $560.00 $3,922.00 . ".'. ....--. .. $8,442.00 Ver 1.0 üt-1I8·28·99 Report No 11 ¡Begin I 04/03/03 Well Robert L. Smith Qtr/Qtr I NW/NW Isec Contractor PO# I Start 1800 Notes Summary EWS Unit #9619 Dally Total ($) I End 1900 I Duration INO 13 12 TWP 17N Current Activity $1,280.00 ') Daily Completion Report I End I 4/3/2003 IAPI 105-009-20024-00 IRng 3W Icounty Preparing to drill out cement Well Total ($) I I $1,280,00 I Moved ¡nand rigged up. SOON ,-, COST ESTIMATE;. RIG Kill Trucks VYat~r Trucks; Tubing Rods Wire line work Down hole tools Tool Hand Cement: SUPERVISION MISC TOTAL $4'80.00 $0.00 $0.00 $300.00 $500.00 $1,280.00 } I Supervisor I Michael Polley loperator Evergreen Resources Alaska I Matanuska,Susitna Istate Alaska 24hr Forecast I Drill out cement Accldent (yln) I No ILast Safety Meeting Date Activity Field I Pioneer Country I USA Ve, 1.0 ÜI·1I8·28-99 IReport No 12 ¡Begin I 04/04/03 Well I Robert L. Smith Qtr/atr I NW/NW Isec Contractor PO# I Start 0700 Notes Summary EWS Unit #9619 Daily Total ($) I End I Duration 1600 9 12 INO 13 ITWP 117N Current Activity $8,442.00 ) Daily Completion Report I End I 4/4/2003 IAPI 106-009-20024-00 I Rng ! 3W I County Drilling out cement Well Total ($) I I $9,722.00 " I Supervisor I Michael Polley loperator ¡Evergreen Resources Alaska Field Pioneer I Matanuska,Susitna ISlats ¡Alaska Country I USA 24hrForecast Set CIBP I Accident (yln) I No I Last Safety Meeting Date I Activity TIH with used 4}14" bi,t,?p8:'m9!gr~n~.tþg.~.,T.ªg ce./l1~nt @. ?qª~.:.~ priIL~q~ge.rn~~t2096.' to 2191'., Displaç~ho!e.wit~cI~él~.f~~sh wª~er witQ,b~gt~ri~iq_e.:,TOH with~bgª~g,tg()ls~ Clean out reverse tank. Rig~own. Pol.ice location.. M9ve.e.qu.iprll.eQtJ()xa.r~. . , COST ESTIMATE; " ..... RIG Kill Trucks YYa.!~r. T ruck~; Tuþing Rods Wire line work ._ O' __,..~.~. _. '" Down hole tools Tool Hand Ce./l1e.,n.t pump . SUPERVISION MISC Down hole motor and man TOTAL $1,760.00 . .'~" .'. " .~, . . . . $}6.'þ;ºº_ $0.00 $0.00 $·1',5()Ó.ÖO . " '$6ob.oO $500.00 .'J3:9?2.:DÓ.. , $8,442.00 .-.,-' '''''.' "'''. .. Ver 1.0 »1-1/ 8-28·99 RU Patterson & boom truck. PU 4.669 guage ring and junk basket to 2090 & set down. RU & perf under lubricator, 2170 to 2178 & 2090 to 2093 using 4" HSC w/4 HPF & DP _ charges. ' , , PU 5 1/2" collar stop. TIH and made several attempts before setting collar sotp @ 726'. RU EWS unit # 402 to 51/2" Demco valve on well head. Pressure up on perfs to 2500 : psi and broke'down. Established infection rate of 5 BPM @ 2650 psi. p,umped 8 bbls and SD, ISDP 1737. Released pressure. 5 1/2" production csg. RU & ran 3/4" BHP recorders and set in collar stop @ ï26' 5 1/2" csg valve leaking on production csg. Attempt to take off valve and found cross thereaded. SO and W/O bell nipple. ~ßcure well and SD, Ver 10 ¡1·1/ 6-26-99 -. .. Oo ./ Activity 12411. Fo.....! I Prepare to Frac AcCldent(Y/n) I~o I Last Safety Meeting Date 1 IEvergreen Resources Alas~.a Field [Pioneer 1511'. IAlaska . Country UAS operator IMal-Su j Supervisor IT rout ,~ $7,200.00 $300,00 $1 ~500.00 $9,000.00 @,ÖST ESTIMATE; Patterson Suprevision Misc, ItlO /3 IAPI 150-009-20024-00 130 r",p /18 )Rng I 1 Countf Current Activity Prepare to Perforate $9,000.00 Well r otal (S) I $18,722.00 Daily Completion Report - ¡end. 15/28/2003 ') Summary r , Notes I,.. 1215 1230 1/4 1230 1245 1/4 f~l~45 ¡mßOO IReport No I 3 IBegin 10~/28/03 Well I Robert L. Smith OtrlOtr INW/NW Isee Contractor I Patterson PO# Dally r otal (S) Start End Duration 0900 0930 1/2 0930 1000 1/2 1000 1045 3/4 1045 1145 1 , ' 1145 1215 1/2 I Report No IBegln 1:~~ß/03 Well II~bert L. Smith QtrJQtr I[~YV/NW sec Contractor POI I ') INO TWP Daily Completion Report lEnd l~l~/03 supervlsor I~~ane Gagliardi IAPI 1[!Q,-009-20024-00 operator I!vergreen Resources Alaska Field ¡Iloneer Rng I~~i!ii county 1!~~tanuska,Susitna ISIate I!!i[~ska country[~:SA ~,~s Current Activity Pressure Gauges Daily Total (S) $225,500.00 Well Total(s) I I 235222 124hr Forecastl"~~~cture Stimulate ACCident (y/n) I No I Last Safety Meeting Date 1 Start End Duration Activity fM1IRU Patterson, RU EWS. ;g~acture stimulate stage 1 (2170-2178 and 2090-2093) wI Nitrogen. ASTP - 3100 psi wI break @ 2272. Pump 72,460 Ibs 20/40 Ottowa sand, ISIP @ 17~. See treater rep..~rt for more detail. ¡r-ac gradient - 1.26 psi/ft Îatch leak off for 20 Minutes. 5 min-1674 psi; 10 min-1683 psi; 15 min-1701 psi; 20 min-1699 psi ;µ Patterson. Open Frac valve too fast; pressure pushed plug to top of lubricator and cut wireline. ~þ lubricator and repair rope socket. Set WRP 2000'. Test plug to 4500 psi. Perforate 1933-1937 and 1921-1925. Used 3-1/8 hollow carrier guns wi 11 gram 0,375" charges. Dump bail acid @ 1935, 1400 1530 1.5 Fracture stimulate stage 2 (1933-1937 and 1921-1925). ASTP - 3050 psi wi break @ 3219 psi. Pump 66,900 Ibs 20/40 Ottawa sand. ISIP @ 1552. See treater report for more detail. Frac gradient - 1.26 psi/ft Watch leak off for 20 Minutes. 5 min-1674 psi; 10 min-1683 psi; 15 min-1701 psi; 20 min-1699 psi 1530 1700 1.5 RU Patterson. Set WRP 1880'. Test plug to 4300 psi. Perforate 1824-1827 and 1802-1806. Used 3-118 hollow carrier guns wi 11 gram 0.375" charges. 1700 1900 2 Fracture stimulate stage 3 (1824-1827 and 1802-1806). ASTP - 3050 psi wi break @ 3238 psi. Pump 45,770 Ibs 20/40 Ottawa sand. ISIP @ 2424. See treater report for more detail. Frac gradient - 1.78 psi/ft 1900 1930 0.5 RU Patterson. Set WRP @ 1770'. 1930 SOON. COST ESTIMATE EWS Water Wire Line Work Supervision Equipment Rental Misc TOTAL $200,000.00 $1,000.00 $21,000.00 $500.00 $1,500.00 $1,500.00 $225,500.00 Notes Summary ¡. Ver 1.0 ijl·1/8-28-99 (Report No IBegln 1~~10103 Well I:igbert L. Smith atr/Qtr I~:&VINW Sec Contractor POI Notes Summary Start ) ) Daily Completion Report I End !~~~ 0/03 supervlsor I:~fjane Gagliardi NO TWP IAPI 11~~~~~..~~20024-00)operator !Ivergreen ~;sources Alaska Field~¡oneer Rng §~,:i!¡i county @$tanuska,Susitna Istate 1~I~ska countryi~.pA ~;\Ns Current Activity ~rFlcture Stimulate Daily Total (S) $11,500.00 w'eIlTotal(f~ I 1246722 24hr Forecast,~rþduction Test Accident (ylo~ I No IL~~t Safety Meeting Date , End Duration Activity ~'IRU Patterson. RU EWS. Test WRP to 4500 psi. ~;ßrforate 1724-1728 and 1674-1678, Dump bail acid @ 1726. ;~:re 3-1/8" hollow carrier guns wi 11 gram 0,375" charges. ffií~acture stimulate stage 4 (1724-1728 and 1674-167.§L ASTP - 1950 psi wi break @ 2400. :m;~mp 60,680 Ibs 20/40 Ottawa sand. ¡SIP @ 1063 psi. See treater report for more detail. Frae gradient - 1.06 psi/ft leak off for 20 Minutes. 5 min-1 018 psi; 10 min-1 006 psi; 15 min-997 psi; 20 min-987 psi EWS and Patterson to Cornhusker #4. ~:ÒST ESTIMATE !::::: ~,~::; Water Wire Line Work Supervision Equipment Rental Mise TOTAL $1,000.00 $7,000.00 $500.00 $1,500.00 $1,500,00 $11,500.00 VOl 1.0 lit·lI 8-28·99 Report NoJ5 ]ee9ln 106/17/03' Well I,~ L Smith Qtr/Qtr I;~;~ /NW [Sec contractor' fª¥\'s Unit # 9619 POI I Dally Total(5 Start End Duration 0700 0900 2 0900 t045 1 3/4 1045 1'100 1'14 11 00 1230 1 1/2 1230 1245 1/4 1245 1330 3/4 1330 1500 11/2 1500 1530 1/2 1530 1600 1/2 1600 1800 2 1800 1845 3/4 Summary '.) ) Daily Completion Report lEnd 16/17/2003 lsuperv,sor ¡Trout [NO TWP lAP I 11~Q-Ó09-20024-00 Rng I'~,i;!', i§çepáre tóï:>ull WRP , Well Total (5) I I ¡'~vergreen Re~ources Alaska Field 1l'¡oneer --[state ~I,aska Counlly I[~¡ßA I" "I" I Operator Ic~u~~------ ,~:~t-Su Current Activity 124hr Forecast Prep to Test for Production [Accident (y/n) I No Last Safety Meeting Date I $8,100.00 $254,822.00 Activity .ª±~15,-03 Spread plastic & spot in tbg trailer. RU EWS unit # 9619 6:'16-03 Service unit # 9619 FI~wing to pit wI 0 psi FCP. Remove Demeo valve & nipple up BOP. PU retrieving head for WRP & strap in hole wI 2 7/8" tbg . Tagged TOS @ 1740'. RU EWS unit # 402. Reverse circulate40' of sand to pit using fresh water. Unseat WRP @ 1770'. Found 600 psi under plug. Opened well to pit on 3/8" choke & bled pressure down to ° psi. Circulated gas out of \yell bore wI 50 bbls fresh water. TOH wI tbg & WRP. LD plug. Flow to pit on 3/8" choke, PU retrieving head for WRP & TIH in hole wI 27/8" tbg. Tagged TOS @ 1823'. Re~erSt; cir~ulated G7' úr ScHIU un WRP @ 1880', Unseat WRP @ 1880'. Found 600 psi under plug. Opened well to pit on 3/8" choke & bled pressure down to 0 psi. TOH wI tbg & WRP. LD plug. Well flowing to pit on 3/8" choke over night. COST ESTIMATE; Rig Supervision Mise, Western $4,500,00 $600.00 $1,500,00 $1,500.00 Total $8,100,00 Vet 1.0 jj1.1/8-28-99 v.. 1.0 ÜI·1/8-28-99 Summary I $6,300,00 Total $2,700,00 $600.00 $1,500,00 $1,500.00 ~,þST ESTIMATE; Rig Supervision Misc. Western 30,30 2177.91 ~ß bottom tbg @ 2181',top of no turn @ 2151', top ~fpump 2138': Landed m_andrel in well head,~ippl.eßow~ Bº~: Ran rotor for pump # 45-4100-912-41857 HS, 85 7/8" Cond A rods w/2-4'x 7/8" rod subs below first rod and 2 plastic rod ~Igides pI rod, 11/4" x16' PR. RD MO unit~ 9619 Started PC @ 1930 hrs, 1600 12.30 6,5# EUE J-55 Cond A tbg sub , 1-S.tator 40 no 45 (#45-4100-912-41857 HS) , 1,1 ° .w.I'~E~!£!§,Y!ng.^h~§g..f.2~.YY.Be:,.II..~.JQTº§.,@?ºg,º:.\,,,',·,'..'w.......,...'W......M."...·.,'.·'. "" .·,,·,·,·.w'......."..".w,....', I~J.J EWS unit # 402 & reverse circulate 10' of sand off WRP @ ,2000', _ Unseat WRP @ 2000'. Had 700 psi under plug. Opened well to pit on 3/8" choke, Blew pressure down to 0 psi. '~~H wI tbg & WRP. LD plug. PU notched collar & TIH to TOS @ 2130'. RU EWS unit # 402 and reverse circulate out 59' of sand to PBTD 2189'. TOH wI tbg, PU stator no turn & TIH wI 67 jts. 27/8" tbg as follows 27/8" 6.5 # 2 ~l~ 1 1/4 3/4 21/2 ,·~~.t? 'Øß45 1045 \~;¡j30 1245 1330 .~~}º. ,~'$15 0845 ;~tQ45 1130 1245 Activity DuratJon End Start Evergn:en Resources Alaska Field Pioneer I 1:'1·'·lNas~a Country lUSA ~e~tor Mat-.:>u ¡ County !API 150-009-20024-00 Rng 13W- ¡NO 13 Twp 117N 12 Well I R L Smith QtrIQ~W/l JW I See Contractor gWS # 9619 ~~ I _ Dally Total IS) 24hr Forecastl prep to test for Production IAccldent (y/n) INo ILast Safety Meeting Date I $261,122.0q Rrepare to Pull WRP I I $6,300,00 Current Activity I Supervisor IT fQut 16/18/2003 [End Daily Completion Report !ReportNo!6 [Begin 106/18/03 ') ') ) ') Corrected State Plane 9-9-03 BFL ___~.__w___ ____~_..____~__.__._________ ___..~_~._..,....'_~ . _____.__·_·_._._._·_._.____...·_..._,,_._·.___..._·w _._--_.~.~..__.- .._.__________.__ ,__, ..._._._. ._..___'._._,..'_~_.__...___.__._. ..___._...___.___.___,..___._____..._" ..___ ...._.__.. ........__..._____., ._~___..._'..._. .__ _..._...__..._." "..._.. ....w.._ ,,__.,,_."_.,_~_.___._..__._,.. _'0___'_______, "__"'W_" pro NAME ASP27Z4E ASP27Z4N 2021780 BARANOF #4 585062.93 2782923.45 ..__._..__._,__~__,___,_... ..._",.', . _'·m .. ....,........... ...'...u....._··_________..._....__._'"_._.' ........._.....__.._..... .. ..' ,.. _ .,.,'.' ',._ ".,... '.. 'W_ _'~"_,._....._'" _ ,_...". _. _ _...... .....,.... _ ' ._. __.". __ __ ..". "._.",_..._.....,. ...",...'.~,..... ._..,,,,.'_... 2021770 BERING #3 585004.70 2783942.33 .__~.~._,,_...... _.._.~"._.._."..,,_ .. .,.M_ _.___....'. ...._.._M__"_·.._.._. .,..._'._~"'_... ,__.,.."._.,_.__.,. ,__._.. _..___M__._.....__.__,. .'.... ...._._'" _, _,.. ., _'.'_".__'.'_'.__.,.._.'._"___'.' "..,....w.' _ ..._..",,_.._... ._._ ".. _'_H ._..".....,._.. __""___'M.~_"_ ____._._______.·.,.___"_·M~...._. 2021810 COOK #1 584593.05 2783408.27 __.,___..____ .._M____..._._.____.__..._......_.M.'__.'_..·._._._~._.__..__..__,_.....,M.___._______.,__ .._,_....__.____ ._._.,,_...~._..__..__ _._____"..._... _._."._.__.._n._., ...,.~__ _.,._... ....~._..__.". ___,_._._.__w.__. ____._..___,_...___ .______. 2021820 ROBERT SMITH #3 542887.46 2774899.30 _..__._ M"_'_~··_·.._. ,..," _ ............~.,_....._ ".._. ....__._.........._..._,...... ·._'M____.·_.'..~......,..__"._._,__,_._,_..'___.'".~.M..... .... ~.h' ,. ....._, ._..,._ .. .......... "_'_'__'_"'M'._" ._~, ... '.<" .._....._..._." ,.. __" ..'.,~ .....M.... . "........_..'. ." _,_ _.., _....__'...H. ___.M._._·.........,.'_M.._."_.MO~.._.... 2021840 D.L.SMITH #1 543786.36 2774923.09 ___,.,,_____.. '._.'_"_~_ ___._._..'....'__ ._.. _..n .~_."_ _.__ .__.., .__'",_ 'M'.._..__ ~..,_.,._.....____~ ,...'..._.. ._..._......_. 'M·.'. ,..." ... . _._. .n._ ._.~_..._...___. "_._".'M_____..__..._.H., _., .....__._.......~ ._...._ ....._,__, .__. _. __....~. __ _.___.__.__,.._...,.. .__ ..._ ____,,_,~____ __._..... 2021830 GARY & JOANN STROMBERG #2 544423.27 2775528.70 _._'______h__.__..__...n...._..~.__..., ._._..~~.____.__._________.__.. ,_.._.._..._,_.,_.... ..,_,.. ...._. _..,_,""_." 'M. ._,__._ ·..__.._~___'_.__M .._,_.._..._'__~._,_.._'... __.__... .....,_... '.._._~_~_.M._.___..,_.___.,. ____.___'n__.__.__~...,..___",. 2021790 LOWELL #2 584152.01 2783381.99 ._..__.,.~...._'._.....~._..._~._.'_ ._.__,........ _._,.._......"._...... ....._. .·'__.M.'~·_.~.~_·..· ..._._.___.._._.._.._,_._._~_,.__,..._.~ _._, ...... .... .~. ....·w_ ._,......" ,. ......._."...,...__,__"...._.. __.... .._.~__. "." ...._............__,__,.. .........___._...____.__._...... ___._....."._._.__.._.....,,__ 2021810 CORN HUSKER #4 543355.96 2774054.90 WelLLocation_Evergreen Pared.xls ) ) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 1, Operations Performed: Abandon D Suspend D Alter Casing D Repair Well [8] Change Approved Program D Pull Tubing D 2. Operator Name: Evergreen Resources Alaska Corp. 3. Address: P.O. Box 871845 Wasilla, AK 99687 7, KB Elevation (ft): 254 ft KB (4' AGL) 8, Property Designation: Private Total Depth 11, Present Well Condition Summary: Effective Depth Casing Structural Conductor Surface Production Liner Perforation depth: Operation Shutdown D Plug Perforations D Perforate New Pool D 4, Current Well Class: Development D Exploratory [8] D D 6. API Number: Stratigraphic Service 50- 009-20024-00 9. Well Name and Number: Robert L Smith #3 Perforate D Variance D Annular Disposal D Stimulate D Time Extension D Other D Re-enter Suspended Well D 5, Permit to Drill Number: 202-182 10. Field/Pool(s): Pioneer Unit (610500) measured 2300' feet true vertical 2300' feet measured 2191' feet true vertical 2191' feet Length Size MD TVD N/A N/A N/A N/A 416' 12-3/4 420' 420' 1012' 8-5/8 1016' 1016' 2197' 5-1/2 2201' 2201' N/A N/A N/A N/A Measured depth: 1674' - 2178' True vertical depth: 1674' - 2178' Tubing: (size, grade, and measured depth) Packers and SSSV (type and measured depth) 12. Stimulation or cement squeeze summary: Intervals treated (measured): N/A 2-7/8 N/A Junk (measured) Plugs (measured) N/A N/A Burst N/A N/A 2950 5320 N/A Collapse N/A N/A 1370 4910 N/A J-55 2179' N/A Treatment descriptions includtng volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Prior to well operation: Subsequent to operation: 14. Attachments: Oil-Bbl N/A N/A Copies of Logs and Surveys Run CBL Daily Report of Well Operations xxx Gas-Met 10 8 Water-Bbl 12 23 Casing Pressure 20 22 Tubing Pressure N/A N/A 15. Well Class after proposed work: Exploratory [8] Development D Title Petroleum Enqineer Phone 907 -355-8569 Service D 16. Well Status after proposed work: OilD Gas[8] WAGD GINJD WINJD WDSPLD 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: Contact Shane Gaqliardì Printed Name ~ne Gaqli;r;!l }() Signature _ f ~ 1M.-:>{ Form 10-404 Revised 2/2003 /~Ä01Jè L~lf~-' ~lÇ') ~ ~ 303-184 Date 8/21/03 nQ'G1~'AL Ver 1.0 ijl·1I8·28·99 -----.- Summary I ~ ..,.__~_ .,.,..,_. ,,"e_,_ .'.,...........,.."'." ,_.', _ . _. _, '., ,..,. '_, ~"."..",,, ",".,"...,._,._~. ,._ ~.' ~'".... .."..,,,~,.., ,~., '" _-.-"~ "., .._,_..~..".., ...... ~,,__...,,~_......' '.....".",.~ .....".. """.,_~ .,,,".. _.' ._.,~, '..~..~ '~""""'~"',"",'" ,,,_.,,__,~. 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'...._'.,.'..._,., ....,... .ª~~tE~_@_s.f~~,:_~!é:l,~º_.@_ºª1_º.~,~s.:_..._..._..,_...,'...."...__.__...._.___...._.___.._._.._.._.__.__,__.___....__._.___..____.._.__._______..___.__..___._._..__ "...._ ........_., ..,_._. .ê.º..P.º...~J..~.~º_~r~:..,......,....._,."_._.....__._........__...,____.,..___....__ ......_..____.._..,.._._.....,..,....._,_.._......,..__......,__.._.,....._.......___,__..__._..._..._,..,......._........,...,.........__.._..._.._....,'...,_____,__.._ ~.p.!~.~..~_p.!~~!,!~..~.~.~~!..E!9,:.,B.~_§.~.~_~.~.~t,~.~~1.~.".,.,._..,........_..,..._",..._,.._.....,.,.._.,'_.._......,.-_.."'.,_..._.,_,.__...,.._,....__,..."......,........,.._..._..,.,.....".,.,..,....,.......__._........._._.._........._...,.__....._., B.º.f>.º.d.,rly~.~_~.~,~.'...~,~.J~..P.~I!_~~9.~.:.Iº~ ",'!i!,ª.~!.@-'.~.r,~.~,~:..._..,."""., -,.,..."--.--..-- .-..,"-'.'.._--._-._-"".~_....-.--,....._...-,.__.,.,-"".__'H_'...._....·__._."_._.....··,..._,,....,.._.,...__...__ .I.n..~!~!I~U~~~~~!~9..!n.~Þ9._~_a.~_g~r.~.!pp'I~_u,e.~º~" pr,essure test BOP to 3099 p~i,.., " _,...._.P¡¿__~j!~~.x!~:,!Þ.~ & tag fill"i~__~..1!§~~~~g_@..~z.9.:.'_"._.___.__.__,._._..__._.._._.._........__.......__.."'...,......__.,.......,..,__.._.__.......,_....___........ .. ..... B~.~'!!~.~~i,!.!.~º?,~_r~~~r,~.e...c.ir9~~~,~~.,f! !!..~~!~r..E~~.~.~I~..~~,~..t9,P.~.T.q..?.~ª.~~,_u..~.ingJºþ.þ~s.__!r,~,~b..~.~!~r·..... ,."" .......', ....,....... ,.,..,..... ....,......,......,.. ,,_._. !º.~.~L~.!j~s..?'.X!~:_!þg·.. . Secure well. SOON. 1415 1500 3/4 ".' .,_."-,.,,..., ""'., .,",,'.....~.-......."".., -" "... 1500 1600 1 ~'" ..-..--...,."'- '.... '.. .".......__..~."..'"".".--..,~, " 1600 1700 1 .... .......""."~._,,.," ", , ....... ."~~_."..- ,..... " 1700 1745 1/2 ." -."-'."'.'-'-" '".",._-.,~-_..._.....~, """,,,,"--'-"---"--'.'~~-'-'-""~- . .~ 1745 1815 1/2 , ... ,., ,. ..., ".,.....~ "" '" "".... ....' ,0,'., . ""_'''' _" ,,,,. 1815 1900 3/4 .' ..' ....,. ,..,,,. "~M"'_"'" ". _.'...",......~. ..~.."."., ",_ . ,'. ......". ~..,."._'..._"_ ~". 1900 1915 1/4 Activity End Duration Start 24hrForecaatl Prepare to run CBL. IAccldent (y/n) 1 No ILaat Safety Meeting Date I # Prepare to TOH w/ rods & tbb, 1 I $265,722,00 $4,600,00 Dally Total ($) Contractor PO# I Current Activity Evergreen Resources Alaska Field Pioneer state IAlaska Country USA loperator ] Mat-Su Daily Completion Report lEnd 17/21/2003 IAPI 150-009-20023-00 Rng 3W I County NO 13 TWP 117N 12 ReportNo28 IBegln 107/21/03 Well I R L Smith Qtr/Qtr NW/NW Isec I Supervisor 1 Trout ') ") Va, 1.0 Üt·1I8-28·99 _,."'._... ..___. __. ,._.____._ --..-----...-'.......-.-.----.,---,,,--.---. '. "-..-----.- ._"""'_'..__.__'_.__._._ ._.____ _______________._._____._...______'.______ _.__."_._. ____"..______.__._ _._. _" 0-_'- __., _. ______., "'__ __._..___ ____ __.u__ ____ow.__·.._.______·,_ ,______________ ---.-- Summary I, ____ _ ___ __ _ ,____ ___,_ _____ ., ....~_._,-. ---,-,-----,.._~----..-.._-,---~'_._----,'---,_. ._-~...__. ----_.._._,---~_..__._-~._--_._--_._------,,--_._-,..'--.--"----.-..----------.---.---- -_._._-~----,--_.,_.--_.~--,--_....__._._-----,.,,----.. .~.__.'.~.._---,--._-,-_.,_.'._.~.- --...- _..~.._._.,.,_._'"',._ ____,,_..,_""~_, ,,_ '._._. _..... ._..,_ .' .._...~ _.._, _______'. _. ___', _ .._____....___.._ ..__..___......_~_"._.__...__._._._.______._.."~_..___'" _..~._._.__~_______. ..~_,._ ._, .___.____._~_ ._..___ .___,..__,.......__ ._.,__..,_.,.._._ . .._.___. .__.,_ _",....._~~_"._~_,._, ,~n. _ _., ,. Notes I "-"---"" -'-,~---,----_.-- ..._.~._,_.....,,~ .~.... _...~ '..."."".",__" "..........._..~".___,.. _.._. 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'_"__""_ _~..,_~_~..' .~ ,....._._.._..._" ........ ....~.~ ~ .._,~.~..,,__. ..'_~__.___,~.'_,...__ ~_ _.~.~ ,"~. ,,"_.~_._,~__~___..,,_,.___ .____.,..c' _.._..~,.._..,.~,...~._......_N___.___.___""_~_.__..^_..___~_.__^._.__...___~,_.._._.~~._,.,."___. ___..~__,~.~ '_.._N~__..___,'_..._.'_~.~~~'~~·,._^..___._,·._,...".' _~^ ~__. .,"_..,_,__~,__._ ...._.N',___._.,·.... ,~ ....c,..,~.,"_"_..~.'~__ ~....,...~._.~.._..__c ^',".,..._..~.'"_..._,,_..._..._._...~._..'___,. .._..~__......_~_._.._.~.__......_._.._..._._...._.._._____.__._.__._......____..._..~.~...._....._~....__......__".._...,__....___..-_._...__.._~~__._...~_....~........._.,~'..._._......_...~.,_......_..~..'..__"_...'..~."_..". ._._...._..._.._,'"~..._____._.....',._.,~_....H". .... ~.. . ....... -........ -~." ~...,~.._...~-~- ..~'.. ...._,_._" _."..."....".~..._..............------.. ,,~.....~ '"~ - ..~."~._....-.-......"...--, .~. -~ "-_.~-" .-. -.,., --_.--.....__...._.."'~,._~._~.....'--.....'-'"....-....,~,-_..__....._.~~..,....._-,.__._'..........,._......_~..........,-'"............~,.,-~_...........~_.._^.~^~,-..~_.....-_.....'~,_..._,,--_........^,......^~.....~- .~..._...~^...-...._.....--.......'---- _........_...^_..__.....~_._,'". ..... -.." ,..-....«,..,... _..~_.................__._..~^'..~ ---._..~_".___..__.,_ .~.....~_~_.._._._.~ '......~..,.~"~,_,..~"_<~,._,~.___~.~_~·_M._..._ ____,...~_._".._".""____"'_~___"'__..........---,_ ----....-..-. ..'_........._.__...--.....-........._........~............._..,......~.....'"..._...._.~_...._.._....,-~,.....-.~.._...'..~.....".,...',_.._.~.."._...............~....-...--.....-,..-.....'''''.....-.... .Qroo ___.Q§.Qº-.___J____.___._._..__.__._,ßU Patters_o.n...,!!~n GRCBl CCl fromIQgg~~.I~ to 600'. Unable to 9~.90d I~g becauseof gas in well bore~ .Q.ªºº____ 0930 J.Ji?__.,..____..__.___.E.U 51/2" WRP &TIH. Set pluQ...@ 1645'. .9~.~-º.___;1,~~_~_.___..~I.~_._.._...,__.._..__.._,.._. .TJ!:!..~i.~º~} 7/8" tbg to 1612'. "1.º1~..__. .~~9_~~____1.f2 __..__.,.____.BU ~WS unit # 402 & reverse circulat~~J!.~~~!l~ 60 bbls fresh water. J-ºi~___,.1.?,ºº-.___.~..1!.i._._._.__.,.....,..,......,.._ .~.I¿ Paterson.! ran GR CBlºCl..f!E.~j§'i~,~!9~~rfac~.. (Evaluat~~~_Ç.~~L._...__..._..__.__ ..1~~º____.1~~_~_._____~~~____._._.__..__..._...___.~~ 51/2" retreiving head for~.~P & TIH,_~~~.~..~!~_pJ~9J~ 1645'. 1~4~__. .~..345_.____t Unseat WRp & TOH. lD plug J.~~.__._.~,,?.3_~_._.._.. J.ª!~_.._..._.____...___. JJH w/2 7/8" tbg as foIl9w~. ..___....___...._. ""...._..___ _..__.__,,_,,_ ,,_~,__,_ ~6 jts 2 7/8" 6.5# EUE tbg. ____ 2128.96 . ...._._'__'_ _1-2 7/8"x 2.250 seating nipple___,_ 1,10 ...._._.._.. ....,__~.._....._.,._,___.__ .1:~..~ª" EUE 6.5# tb9_su~._~L!.aJLpar in place for PC __J.5.93 .,.._._____.... ,_"_"_,_,,,,,_, _...,___........_.__.....,...__.... J.~2 7/8" EUE 6,5 # tbg. 30.30 2176.29 ...",.,""'........--.. ~.,..,-,..."-_.,....--" ....\...._,,"'..~..~.~.__...._-"'-~_.,.....--...- ..... ". -............-- --_......_~--.....-..........._. ....,.._____ __._._.___.... ___.____~~~tall tb~ hanger & landed t~9~.~l>0ttom of tbg @ 2179', top of pump @ 2133', ,~.~~º_....._. .!,~.9g___._ ,,!!.?..............__.....__..__.._.... ..~æpl~_~~~~_.~<2!::.~__.."...._....._.,'_....._..,...._.._..__...___....~.___ __..__.__..,..__........_. _.._____...,____...._. .~_?_º-º_..._. .1.!-º9.__... .1......_..,........._....._.__.......,......_..~U insert Pf.2~!!)E_~.~:41 00-454-y~~~_~~~ªy:...!.~~...w/85 rods...ª...1. 1/4" x .16: PH. , , ....'_...m_............"....__..._...._............. !~~~?-~~.._~g.________.~pace out pump install drive head. RU EWS # 402 to 2 7/8 tb9..J.0ad tbg w/2 bbls water & pres~.ure test pump to 200 psi. .ª1~.r!.f'''º_@..1Zª_º,J:1.~~.:..__..._...._._,....._.._..._._.,.....__....__.___.........____..,____..__..._..__...._._.__......_ ...,......'--'.."'_....,~_... ......._M....._...-.....--..'"....,..M......._._._. . -~._-,_.__...--_. .......-............-...-- ~___,___'"'.....__..,.......,_.............__......-_,_....._"..........._"..._,...._w-'~..__...._.~_.~,_..._~ .._.,.......~......_..................._....,-,._._-_............'..._,_....'.."."...._.....~.....~._..........'"._.- ---.-----.---.-"..---......--.---,..-.- ._.~._-_....._-,-_.__.__._._.'- -.--......,..... .---.-...........-,-.-...-......-.- "-"--''''-''''''''''''''''- .....--,-......-- Activity End Duration Start # 124hrForec8atl Testing Accldent(Yln) I No I Laat Safety Meeting Date Prepare to TOH wI rods & tbb. I I $275,172.00 $9,450.00 Dally Total ($) Contractor I po# I Current Activity Evergreen Resources Alaska Field Ploneer I State IAlaska Country I USA I Operator I Mat-Su Daily Completion Report 1 End 17/22/2003 IAPI 150-009-20023-00 IRng 13W. I County INO 13 ITWP 117N 12 I Report No 129 IBegln 107/22/03 Well I R l Smith Qtr/Qtr 1 NW/NW Isec supervlsor Trout ) ) '=\'=I~GI~==I~~ RESOURCES(ALASKA)COR~ A Subsidiary of Evergreen Resources, Inc. ) July 9,2003 Ms. Sarah Palin Dr. Randy Ruederich Mr. Daniel Seamount Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7th Ave #100 Anchorage, Alaska, 99501-3539 RE: Sundry Approval (Form 10-403) Pioneer Unit - DL Smith #1, Stromberg #2, RL Smith #3, Cornhusker #4, Cook #1 and 1702-15DA Dear Commissioners Palin, Ruederich and Seamount: Attached are the 10-403 forms for the following wells. The proposed workover operations will consist of pump changes and running cement bond logs on two wells squeezed via the braiden head. Well RL Smith - DL Smith - Strom berg - Cornhusker - Cook - 1702-15DA - Work Over Description Down size pump and Run CBL /" Downsize pump Downsize pump Upsize pump and run CBL Downsize pump Clean to PBTD If you have any questions, please feel free to contact me at 907-355-8569 or shane g@evergreengas.coIn. Sincerely, ß~ Shane Gaglia;Ji' Petroleum Engineer f"""~' L '" r- f',\ !&.......~ ~ .W)' .o=- t F-'" ~, \. J ¡..>., ~ \', '" tLT~' ;'''QJ ~~~ ~ ~~" t.,.,... C.~-.l JUL 0 9 2003 Aiss/la OJ! g [;:~~ CQn~~, C~!:'(!:':-:;22:C:: Þ.n~htm:{8 1075 Check Street, Suite 202 · Wasilla AK 99654 P.O. Box 871845 · Wasil/a, AK 99687 . TEL 907.357.8130 . FAX 907,357.8340 .. ~ . ) ) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL 20 MC 25.280 1, Type of Request: Abandon 0 Suspend 0 Alter Casing 0 Repair Well [gJ Change Approved Program 0 Pull Tubing 0 2. Operator Name: Evergreen Resources Alaska Corp. 3. Address: P.O. Box 871845 Was ilia, AK 99687 7. KB Elevation (ft): 254 ft KB (4' AGL) Operation Shutdown 0 Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: Development 0 Exploratory [gJ Stratigraphic 0 Service 0 Perforate 0 Variance 0 Annular Disposal 0 Stimulate 0 Time Extension 0 Other 0 Re-enter Suspended Well 0 5. Permit to Drill Number: ~' 202-182 6, API Number: 50- 009-20024-00 --- 9, Well Name and Number: Robert L Smith #3 8. Property Designation: Private 10. Field/Pool(s): Pioneer Unit (610036) 11. Total Depth MD (ft): 2300' MD Casing Structural Conductor Surface I ntermed iate Production Liner PRESENT WELL CONDITION SUMMARY I Total Depth lVD (ft): I Effective Depth MD (ft): I Effective Depth TVD(ft): I Plugs (measured): 2300' TVD 2191' MD 2191' MD CIBP @ 2191 Length Size MD TVD Burst WA WA WA WA 416 12-3/4 420 420 1012 8-5/8 1016 1016 WA WA WA WA 2197 5-1/2 2201 2201 N/A N/A N/A N/A Perforation Depth MD (ft): I Perforation Depth lVD (ft): I Tubing Size: Tubing Grade: 1674-2178 1674-2178 2-7/86.4 ppf J-55 Packers and SSSV MD (ft): Packers and SSSV Type: N/A N/A 2950 N/A 5320 N/A N/A N/A 13, Well Class after proposed work: Exploratory [gJ Development 0 12. Attachments: Description Summary of Proposal [gJ Detailed Operations Program [gJ BOP Sketch 0 14. Estimated Date for Commencing Operations: 16 July 03 16, Verbal Approval: Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Date: 15. Well Status after proposed work: Oil 0 Gas [gJ Plugged 0 WAG 0 GINJ 0 WINJ 0 Contact Shane Gagliardi Printed Name ~ne Gagl;rn Signature ~ ..d-~....2- Title Petroleum Enqineer Phone 907 -355-8569 Commission Use Only Date 7/3/03 W6!\- 1/ /01 z,003 Ov:5~ 7//ð/3 Junk (measured): N/A Collapse N/A N/A 1370 N/A 4910 N/A Tubing MD (ft): 2129' Service 0 Abandoned 0 WDSPL 0 Sundry Number: 3o!Þ-11 't Conditions of approval: Notify Commission so that a representative may witness BOP Test ~ Plug Integrity 0 Mechanical Integrity Test 0 Location Clearance 0 'T£st- 'lJOPE Þ loCO pç¿, Other: .1W 'U' ÅAL "L S : 2- ~S" (h.) J 0\-1 t-u t-v- fL ~;y P E ¡ ç Lio'-/- Subsequent Form Required: Approved by ~J" ~~ Form 10-403 Revised 2/2003 ~OMMISSIONER BY ORDER OF THE COMMISSION tRBDMS BFL JUL 1 0 ?OO·~ OR'G~l\JAL D ?no.1 Date: ZZ/!r:4C3 .'> ') ) Pump Change Procedure Pioneer Unit: RL Smith #3 API: 50-009-20024 Section 2 Township 17 North Range 3 West Matanuska Susitna Borough, Alaska Elevations: GL: 265 ft KB: 269 ft (4 ft AGL) Objective: Pump change and place on production test. History: This well was initially drilled November 2002. Cement was drilled out and a CIBP was set @ 2191 on 4/4/03. The well has been fracture stimulated and completed with a 40N045 PC pump. Preparation: 1qJ -/L3 ì 1. AOGCC: Contact Winton Aubert (907..279-1433) 48 hours prior. 2. Tanks: Reverse Tank. 3. Water: DJ will provide drivers for EWS water trucks. 4. Pumping Services: EWS Cmt Unit 402. 5. Wireline Services: Patterson will run CBL. 6. Workover Rig: EWS Wilson Super 38 rig #9619. 7. Tubing: None. Spill Prevention: Alaska Department of Environmental Conservation has strict regulations regarding spills. All equipment will have plastic liners underneath them. Liners will be run around wellhead. All water will be run to the pit. Casing and Tubing Data: Size Weight 10 Drift Collapse Burst Yield Capacity Capacity (in) (ppf) (in) (in) (psi) (psi) (klbs) Bblslft Ft/bbl Casing 5-1/2" 17 4.892 4.767 4910 5320 273 0.02325 43.015 Tubing 2-7/8" 6.4 2.441 2.347 7680 7260 120 0.00579 172.765 Annulus 2-7/8 to 5-1/2 0.01522 65.710 Tight Hole: No information from this well may be shared with anyone outside of Evergreen Resources Inc. ) , Procedure Pump Chanae Procedure 1. MIRU EWS Rig 9619 and EWS cement unit #402. /' a. Install and test BOP (pipe and blind rams). 2. POOH wi 2129' 2-7/8 rods and 40N045 rotor. 3. Tag PBTD @ 2191'. Clean out if necessary. 4. POOH wi 2129' tbg, 40N045 pump and 1 jt tail pipe. 5. MIRU Patterson Wireline. 6. Run CBL from PBTD to surface. /' 7. Evaluate for squeeze. 8. TIH wi 2129' tbg, tag bar, seat nipple and 1 jt tail pipe. 9. TIH wi 2129' 7/8" rods wi 40N006 pump. / 10. Seat pump in seat nipple wi 500 psi using EWS cmt unit 402. 11. Start pump @ 300 RPM. Place on production test. lIT '('! ~II ~:j:I' ¡¡ii, !I!' ~\':ilí ¡Iii!! ~1~J ~:II ~ !i'ili I:·¡~I¡ :!,I ':."1'1 Ifi' li',:,I:..I ,:i:11 il:!: Ii:';! it" 111~ 1'::.!,::,II,1 ~I:~ ~ 1'1 ~I.'! I:il Iii.,:! 11.t,\ ~:,:¡ ~:','" i :! ~ III ~i11 ~i:::11 jl<¡ .'~:' ,,;: t:!lli f'~1 31 lilJ IË 11 §II ~ 15 10 ¡,I!! :::::::iii'::!~ &::: 9 :::::::ill ì.:oIf ø=:: III'~ 311:':(, lIS 8 ;~ ',:j ì"'~ 7 §11. ~i:',:) Iæ ..~ -+ 3I~1E6 ª' ~.... F ~ A3 .,(' ) " Well Qtr/Qtr Twp RL Smith #3 API 2 3W Current 5O~o9-2oo24~o=V=I~GI~== 1'1 17N See Rng County Matanuska,Susitna State Alaska Field Pioneer Unit Country USA KB/GL 269/265 No. I Depth I Length I 00 I 10 ~ 1 2189 2 4.24 N/A 2 2178 30.3 2.875 2.441 3 2170 8 N/A N/A 4 2148 11.51 2.88 N/A 5 2090 3 N/A N/A 6 1933 4 N/A N/A 7 1921 4 N/A N/A 8 1824 3 N/A N/A 9 1802 4 N/A N/A 10 1724 4 N/A N/A 11 1674 4 N/A N/A n ~ ~ L:. .~,".','~','-,., ",'11 . I ~,.~ PBTD 2191 2 Size Weight Grade Thread 23 J-55 ST&C 17 J-55 L T&C 6.4 J-55 8rd Description Alpha Tools Midget 1110,000 psi CIBP 1 jt 2-7/8" Tail Pipe Perfs from 2170 - 2178, 4 spf and 23 gram 30N045 pump wI torquestopper No-turn Perfs from 2090 - 2093, 4 spf and 23 gram Perfs from 1933 - 1937,4 spf and 11 gram Perfs from 1921 - 1925,4 spf and 11 gram Perfs from 1824 - 1827, 4 spf and 11 gram Perfs from 1802 - 1806, 4 spf and 11 gram Perfs from 1724 - 1728, 4 spf and 11 gram Perfs from 1674 - 1678, 4 spf and 11 gram Casing 8-5/8 Casing 5-1/2 Tubing 2-7/8 Depth 1016 2201 2129 ...- Modified by STG 7/3/03 t..., ~~ ) ) Proposed Well RL Smith #3 API 50~O~20024~=\'=I~GI~== 1'1 Qtr/Qtr See 2 Twp 17N Rng 3W Size Weight Grade Thread Depth County Matanuska,Susitna State Alaska Casing 8-5/8 23 J·55 ST&C 1016 Field Pioneer Unit Country USA Casing 5·1/2 17 J·55 LT&C 2201 KB/GL 269/265 Tubing 2-7/8 6.4 J·55 8rd 2129 No. I Depth I Length I 00 I 10 Description ~ ~ 1 2189 2 4.24 N/A Alpha Tools Midget 1110,000 psi CIBP 2 2178 30.3 2.875 2.441 1 jt 2-7/8" Tail Pipe 3 2170 8 N/A N/A Perfs from 2170 - 2178,4 spf and 23 gram 4 2148 11.51 2.88 N/A 40N006 pump wI torquestopper No-turn 5 2090 3 N/A N/A Perfs from 2090 - 2093,4 spf and 23 gram 6 1933 4 N/A N/A Perfs from 1933 - 1937,4 spf and 11 gram 7 1921 4 N/A N/A Perfs from 1921 - 1925,4 spf and 11 gram 8 1824 3 N/A N/A Perfs from 1824 - 1827, 4 spf and 11 gram 9 1802 4 N/A N/A Perfs from 1802 - 1806, 4 spf and 11 gram 10 1724 4 N/A N/A Perfs from 1724 - 1728, 4 spf and 11 gram 11 1674 4 N/A N/A Perfs from 1674 - 1678,4 spf and 11 gram IË 11 IE 10 5 4 H lie 3 ;~ 1,~ 2 I,~ ~ . .:J 1l PBTD 2191 9 8 7 6 ) Program Summary Pioneer Unit Cook No 1 API: 50-009-20022-00 Permit: 202-180 SW/SE of Section 30 Twp 18 North Rng 1 West Matanuska Susitna Borough, Alaska Evergreen no proposes making several pump changes in currently completed wells. Evergreen will utilize its single-double work over rig and water trucks currently residing in Wasilla. As specified in 20 MC 25.280 (b)(4), fresh water will be used to control the well. A high pressure cementing or fracturing pump will be on location to kill the well if necessary. We do not expect well control issues since this well was previously drilled with air. As specified in 20 AAC 25.280 (b )(5), the pressure gradient is normal. Thus ~' bottom hole pressure on the bottom most interval is (2,500 ft x 0.435 psi/ft) or 1,085 psig. We plan on using 3,000 psi BOPE. Regulation Exceptions 20 AAC 25.285: Evergreen requests that our manual BOPEs, as illustrated on the next page be acceptable for the frac and the clean-out operations. f'''1 ~ ..' \.~ '< JUt r ~1 ;i ') 1 Street: 1075 Check Street, Suite 202 Wasilla, AK 99654 Mailing: P.O. Box 871845 Wasilla AK 99677 Tel 907-357-8130 Fax 907-357-8340 WW'N.EvergreenGas.com ) ) BOP DETAIL FOR CLEAN-OUT OPERA nONS (AFTER FRACTURE TREA TMENT) A schematic of Evergreen's BOPE for well clean- outoperations is shown in the adjacent figure and detailed in the table below. We will utilize this set-up after the fracture treatment to retrieve (via tubing) the bridge plugs and to clean-out sand in the well bore. Here we propose using 3,000 psi, 7-1/16 inch BOPE manually operated system. The BOP is attached to the 8-5/8" casing head which is also our spool in this operation. 8 I Strip Head I I 7 Pipe Rams Ib Ib ~ II) ::I c: ~ ~ dl q I 6 I Blind Rams 1 2 5 To pumUCIJI= Well Head 3 4 ==rot=IOI To Tank No Item Manufacturer Size Psi (in) Rating 1 Valve FMC or equivalent 2 3,000 2 Valve FMC or equivalent 2 3,000 3 Valve FMC or equivalent 2 3,000 4 Valve FMC or equivalent 2 3,000 5 Tbg head and spool Wellhead Inc 5-1/2 x 2-7/8 3,000 6 BOP: Blind Ram Townsend Manual Operated 7 -1/16 3,000 7 BOP: Pipe Ram Townsend Manual Operated 7-1/16 3,000 8 Stripping Head High Tech Tools The blowout pre venter is a Townsend (Odessa, TX) double gate with blind rams on the bottom and pipe rams on the top. This BOP is manually operated using two wheels. Above the BOP is a High Tech Tools (Aztec, NM) stripping head which functions as an annular preventer. The body is rated to 3,000 psi and the insert rubber, manufactured by Triple M (Odessa, TX), , designed for 2-7/8" tubing, is pressure rated to 1,000 psi. Four manually /' activated FMC block valves are attached to the spool - two for the kill like and the remaining two to the choke line. The kill line is attached to an Evergreen Well Service frac truck or cement truck. Three inch 15M psi treating iron and/or 3 inch 3M psi hose will be used to connect the pump to the spool. A 15M psi valve and check valve also exists at the pump truck. The choke line connects the wellhead to a 500 bbl frac tank. Two 3,000 psi block valves at the spool will be connected to two or three inch 3M pipe running to the 500 bbl frac tank. In line with the choke line are two 3M psi block valves located at least 20 feet from the wellhead. A conventional choke manifold is not specified in this procedure due to the shallow depths, lack of hydrocarbons, and due to our prior experience with this well bore. F:(. E: (~ [:: f\l Street: 1075 Check Street, Suite 202 Wasilla, AK 99654 Mailing: P.O. Box 871845 Wasilla AK 99677 Tel 907-357-8130 Fax 907-357-8340 www.EvergreenGas.com JUL 0 9 200? Ajc:~kr: ) ) = 'f:: I~(':;,I ~:::: I!\I 1:¡~:!¡:~ì~,Jr.~¢¡! ¡¡¡~~I~ln.'!j;K¡¡':j· ~'::¡OM ¡!¡'::i¡jÖ!ii¡1iim:iT'¡¡¡I i::IIBmimmÚr ¡i!m:::IIJ¡rmmi.,;¡!!!I, March 23, 2003 Ms. Sarah Palin Dr. Randy Rued\rich Mr. Daniel Seamount Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7th Ave #100 Anchorage, Alaska, 99501-3539 RE: 10-403 - Fracture Stimulation Evergreen Robert Smith No 3 Pioneer Unit f 1,~7- \J.~ API: 50-009-2002;6-00 Permit: 202-iØt I NW/NW of Section 2 Twn 17 North Rng 3 West Matanuska Susitna Borough, Alaska Dear Commissioners Palin, Rued~rich and Seamount, Evergreen Resources Alaska Corporation submits the following 10-403 to hydraulically fracture stimulate the subject well. We plan to commence work on this well on 4-Apr- 03. Attached is the 10-403, a summary of operations, a blowout prevention sketch used during this program, a procedure and a well bore diagram. Thank you for your help. Please contact me if you have any questions. Sincerely, Attachments r~"~' ¡'"~"f.'~.:",~= ~ -, ~.,'~::) \~~ I' r ~, c:: ')liL'll ' ~ LI-\i-'; '.' ,~J ::, U ,,,: t~I~,",:~: ',~ ~~ ¡'i. < '," '~ t .~'i···'\ ~~. t~~':· ~... ~ .~ ~ ~~on 1~~ '; :~,. '...t, ,~~}.~ Street: 1075 Check Street, Suite 202 Wasilla, AK 99654 Mailing: P.Q, Box 871845 Wasilla AK 99677 Tel 907-357·8130 Fax 907-357-8340 www.EvergreenGas.com OR GNAL ) ) \tJ4A- I}TS 3/2..&/ Z-r..?O Š ð3/Zr;/o3 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT FOR SUNDRY APPROVALS n Operation Shutdown [J Plugging Variance Development CJ Exploratory ŒI P.O. Box 871845 Stratigraphic 0 Wasilla, AK 99687 Service 0 4. Location of well at surface: NW/NW of Sec 2 Twn 17 North Rng 3 West, Seward Meridian 3272' FSL & 606 FEL OF SEC At top of productive interval: Same 1. Type of Request Abandon 2, Name of Operator After Casing 0 Change Approved Program 0 Evergreen Resources Alaska 3. Address: At effective depth: Same Total depth: Same 12. Present well condition summary Total depth: Effective depth: Measured true vertical Measured true vertical Length Size Casing: Structural Conductor Surface Intermediate Production Liner Perforation depth: 420' 1016' 12-3/4" 8-5/8" 2201' 5-1/2" Measured 2,170' - 2,178',2,090' - 2,093',1,933' -1,937',1,921' -1,925'1,824' -1,827',1,802' -1,806',1,724'- 1,728',1,686' - 1,690' o Suspend Repair Well Pull Tubing 5. Type of Well n Re-enter suspended well D o Time extension 0 Stimulate n Perforate n Other 6. Datum elevation (OF or KB): 254 ft KB (4 ft AGL) 7. Unit or Property Name: Pioneer Unit 8. Well number: Robert Smith No 3 9. Permit number: ~ 202=184-' If 'l. 10, API Number: If' 50-009-2002Ø-00 11. Field and Pool: Pioneer ŒI [:::¡ 2300 feet feet feet feet Plugs (measured) none 2300 Cemented 70 sx on bot & 10 sx on top 210 sx 15.8 ppg Class G, Circ to Surface 256 sx 13.7 ppg Class G, TOC +/-1600 ft Junk (measured) none Measured Depth True vertical depth 424' 1020' 2205' True vertical 2,170' - 2,178',2,090' - 2,093',1,933' -1,937',1,921' -1,925'1,824' -1,827',1,802' -1,806',1,724'- 1,728',1,686' - 1,690' Packers and SSSV (type and measured depth) none Tubing (size, grade, and measured depth) +/-1650 ft KB with Progressing Cavity Pump on Bottom Description Summary of Proposal ŒI 13, Attachments: 14, Estimated date for commencing operation 4-Apr-03 16. If proposal was verbally approved Detailed Operations Program ŒI BOP Sketch ŒI OiIe 15. Status of well classification as: Service [] Name of approver Date Approved 17. I hereby certify that t~eí~o~ng is true and correct to. the best of my ~nOWledge. Signed ~~. Title Alaska Projects Manager Gas ŒI Suspended [J Date March 23, 2003 FOR COMMISSION USE ONLY Conditions of approval: NotifyCommission so representative may witness '1 _. l l _ Approval No. 303 -0'1' ~ J r.t,· ze AM 'L5, 'lisCh-) ~ ZV A-1k.l-S, z...t7CÇ-) I (u:re,y~~t4.. w.il ~rw l oc.~ifm~t is Ovþ ¡Jrt?V€ CI ' Plug integrity 0 BOP test ~ Location clearance 0 Mechanical integrity test 0 Subsequent form required 10- 4- 0 7 ;/? .tf'. ~~mmissioner D~.Tè0']/~!ðp v ~/ . 'SU~fIN~PLiJAf'E Approved by order of the Commission Form 10-403 Rev 06/15/88 RBDMS 8Ft M~R 2 6 20m ORIGI~A_ (' ') 1~,.1 .A;~ìv',,::":: : , ":,,,,;011 -- ~' :C,N\¡-:" ) ) :: \l=I~(~il'~ ==I'~I I~~t' f~i:;1J I'lt"i::: : ~i lA :~I>: ~I ,:::e1¡p.. ." .1,. ':, I, I ". Program Summary Pioneer Unit Robert Smith No 3 API: 50-009-20023-00 Permit: 202-181 NW/NW of Section 2 Twn 17 North Rng 3 West Matanuska Susitna Borough, Alaska The subject well was spud on November 10, 2002 and the rig moved off on November 13,2002. The well was drilled to 2300 ft KB and 5.50 inch casing was run to 2201 ft KB and cemented with 256 sx 13.7 ppg Class G sx of Class G Cement. Plug back total depth is 2096 ft KB. Evergreen now proposes stimulating the subject well via hydraulic fracture treatment. The treatment will be pumped in four separate stages down 5-1/2", 17 ppf, casing. Wireline conveyed retrievable bridge plugs will separate each stage. Shown below are the proposed perforation intervals and a summary of the designed stimulation. Proposed Perforations & FractureTr~atment Stage InterVal Formation Shots/ft FracDescription 1 2,170' - 2,178' Tyonek 4 88,000 Ibs 20/40 proppant 2,090' - 2,093' N2 Foam Fluid 1,933' - 1,937' 64,000 Ibs 20/40 proppant 2 1,921' - 1,925' Tyonek 4 N2 Foam Fluid 3 1,824' - 1,827' 56,000 Ibs 20/40 proppant 1,802' - 1,806' Tyonek 4 N2 Foam Fluid 4 1,724' - 1,728' Tyonek 4 64,000 Ibs 20/40 proppant 1,686' - 1,690' N2 Foam Fluid Before the stimulation program begins, Evergreen will drill out roughly 100 feet of cement left behind from the production casing's primary cement job. Following this procedure, production equipment will be set and the well will be placed on production test. Evergreen will utilize its own international frac fleet, single-double work over rig and water trucks currently residing in Wasilla. This same frac procedure has been done several thousand times by Evergreen in the US and abroad. As specified in 20 AAC 25.280 (b)(4), fresh water will be used to control the well. A high pressure cementing or fracturing pump will be on location to kill the well if necessary. We do not expect well control issues since this well was previously drilled with air. As specified in 20 AAC 25.280 (b)(5), the pressure gradient is normal. Thus bottom hole pressure on the bottom most interval is (2,500 ft x 0.435 psi/ft) or 1,085 psig. We plan on using 3,000 psi BOPE. ReQulation Exceptions 20 MC 25.285: Evergreen requests that our manual BOPEs, as illustrated on the next ~ two pages be acceptable for the frac and the clean-out operations. 20 MC 25.287: Evergreen requests that our Fullbore lubricator and spool on top of the Demco Frac Valve is acceptable. Street: 1075 Check Street, Suite 202 Wasilla, AK 99654 Mailing: P,O. Box 871845 Wasilla AK 99677 TeI907-357-8130 Fax 907-357-8340 www.EvergreenGas.com ) :: "i::, f~lIlt:;'IU;?:::::: m ~ II D:DUI 11 UMlI œlft ~l D J. IAIUCIIDWII m D 1:~J::t¡¡~~U I:~'¡;;~ :¡J(IU.Ä'!¡iK;h,' 1t:~I~i'~ 1:1.. ,II¡:¡:¡IJj:¡!;llj\i!!I:t; i;:I'I::II!:~¡¡;:ll;j!¡¡: !ih!g::lii¡:iil!i!:. ¡hI:. BOP DETAIL FOR FRACTURE STIMULA TIONS Evergreen proposes fracturing the subject well in a series of successive stimulation treatments. This method, typically referred to as "stage work", generally consists of the following steps: 1. Perforate coals; 2. Stimulate coals down casing; 3. Flow well to the pit or tank and allow the well to fill-up with sand/water so that flow stops; 4. Wireline set a retrievable bride plug to isolate the interval. 5. Repeat steps 1 through 4 until all selected coals are stimulated. Here, only a group of coals over a small interval - roughly 100 feet - is completed per stage. Each stage typically takes a few hours and this procedure is repeated until all of the targeted coals are stimulated. During stage work, two BOPE configurations are needed: one for the fracture treatment and the other for the wireline operations. Detailed below are the BOPE Evergreen plans to utilize. Evergreen is very comfortable with this setup. We have stimulated thousands of treatments in this manner. BLOW OUT PREVENTION EQUIPMENT FOR FRACTURING DOWN CASING A schematic of Evergreen's BOPE for fracturing is shown in the adjacent figure and detailed in the table below. Here we propose using 5,000 psi rated (10,000 psi test) Size Psi No Item Manufacturer (in) Rating 1 Valve Balon or equivalent 2 3,000 2 Plug Balon or equivalent 2 3,000 3 Wellhead/Spool Wellhead, Inc. 8-5/8 3,000 4 Casing Collar Maverick or equivalent 5-1/2 5,320 5 Frac Valve Demeo 5-1/2 5,000 6 Frac Lines FMC or equivalent 4 3,000 Casing Frac BOPE Demeo Frac Valve that screws directly into the 5-1/2" casing short thread & coupling collar. From this valve, 15,000 psi frac treating iron is attached. Integrity of the valve is tested before each fracture treatment to 4,000 psi. BLOW OUT PREVENTION EQUIPMENT WIRE LINE OPERATIONS DURING FRAC'S After the zone has been frac'd and flowed back, a wireline set retrieveable bridge plug is set and then perforations are shot. All wireline operations are conducted under a 5-1/2" x Size Psi No Item Manufacturer (in) Rating 1 Valve Balon or equivalent 2 3,000 2 Plug Balon or equivalent 2 3,000 3 Wellhead/Spool Wellhead, Inc. 8-5/8 3,000 4 Casing Collar Maverick or equiv. 5-1/2 5,320 5 Frac Valve Demeo 5-1/2 5,000 6 Spool PESCO w/ 2" and 1" nipple & valve 5-1/2 3,000 7 Fullbore Lubricator PESCO or equiv. 4 3,000 10ft fullbore lubricator. Between the lubricator and the Demeo Frac Valve is a spool. The spool provides access to the well case the well needs to be killed while logging. Frac pumps will be on location. We do not propose pressure testing the fullbore lubricator. Street: 1075 Check Street, Suite 202 Wasilla, AK 99654 Mailing: P,O, Box 871845 Wasilla AK 99677 Tel 907-357-8130 Fax 907-357-8340 www.EvergreenGas.com '-0 1 SM rRAC LINES IS 5 I,), 2 7 I I J. I~~i.. 6 :.G: 5 4 1; -;', :3 , Wellhead !2 _. _ '___n ··0_' Wireline BOPE ) ') =\'=~~Gil,~==il~1 1·,1. !:,,\:'lIll CL'':i .",:0 l..Il ';~,.!II '::I~-I'.I:I. 10' ,Ii ,I', I II " BOP DETAIL FOR CLEAN-OUT OPERA TlONS (AFTER FRACTURE TREA TMENT) A schematic of Evergreen's BOPE for well clean- out operations is shown in the adjacent figure and detailed in the table below. We will utilize this set-up after the fracture treatment to retrieve (via tubing) the bridge plugs and to clean-out sand in the well bore. Here we propose using 3,000 psi, 7-1/16 inch BOPE manually operated system. The BOP is attached to the 8-5/8" casing head which is also our spool in this operation. To Pump ~ Evergreen uses a similar set-up in its operations in the Raton Basin where we frac over 1,200 stages per year using two full-time frac fleets. Size Psi No Item Manufacturer (in) Râtlrag 1 Valve FMC or equivalent 2 3,000 2 Valve FMC or equivalent 2 3,000 3 Valve FMC or equivalent 2 3,000 4 Valve FMC or equivalent 2 3,000 5 Tubinghead & Spool Wellhead Inc 5-1/2 x 2-7/8 3,000 6 BOP: Blind Ram Townsend Manual Operated 7 -1/16 3,000 7 BOP: Pipe Ram Townsend Manual Operated 7-1/16 3,000 8 Stripping Head High Tech Tools 7-1/16 3,000 The blowout preventer is a Townsend (Odessa, TX) double gate with blind rams on the bottom and pipe rams on the top. This BOP is manually operated using two wheels. Above the BOP is a High Tech Tools (Aztec, NM) stripping head which functions as an annular preventer. The body is rated to 3,000 psi and the insert rubber, manufactured by Triple M (Odessa, TX), designed for 2-7/8" tubing, is pressure rated to 1,000 psi. Four manually activated FMC block valves are attached to the spool - two for the kill like and the remaining two to the choke line. The kill line is attached to an Evergreen Well Service frac truck or cement truck. Three inch 15M psi treating iron and/or 3 inch 3M psi hose will be used to connect the pump to the spool. A 15M psi valve and check valve also exists at the pump truck. The choke line connects the wellhead to a 500 bbl frac tank. Two 3,000 psi block valves at the spool will be connected to two or three inch 3M pipe running to the 500 bbl frac tank. In line with the choke line are two 3M psi block valves located at least 20 feet from the wellhead. A conventional choke manifold is not specified in this procedure due to the shallow depths, lack of hydrocarbons, and due to our prior experience with this well bore. Street: 1075 Check Street, Suite 202 Wasilla, AK 99654 Mailing: P.O. Box 871845 Wasilla AK 99677 Te190i-35H130 Fax 907-357-8340 www.EvergreenGas.com ') ') ':: \1: I~G!I~==II'I 1:~,I::!~(nìll:t,¡;;~ ~i ÎÌji.A$Kjiil·I1;:'t;Ji~!:,.. .Iii :i;¡¡Ó!i¡¡¡Ii!!lli; :Ö¡I, i::¡I!i~ij¡:lhmi', HUW:li¡¡iiil!i!:. ¡j¡li:. PROPOSED PROCEDURE PIONEER UNIT ROBERT SMITH No 3 API: 50-009-20023-00 PERMIT: 202-181 NW/NW OF SECTION 2 TWN 17 NORTH RNG 3 WEST MATANUSKA SUSITNA BOROUGH, ALASKA Obiective: Stimulate Tyonek coals using a four hydraulic fracture treatment using a nitrogen foam and 20/40 proppant. Set production equipment and place well on test. This is the initial completion for the subject well. Elevations: Ground: 250 ft Kelly Busing: 254 ft (4 ft AGL) Tubulars: Surface: 505' KB, 17.0 ppf, J-55, new Production: 3735' KB, 17.0 ppf, J-55, new Tubinq: 2-7/8",6.7 ppf, J-55, 8 rd, EUE, new History: The subject well was spud on November 10, 2002 and drilling ended on November 13, 2002 using Evergreen Rig No 1 using air. Surface and conductor holes were drilled and casings were ran and cemented. The well awaits completion and production test. Preparation: 1. AOGCC: Contact AOGCC (907-279-1433), Winton Aubert, 48 hours prior to operations. 2. Tanks: Two Rain for Rent 500 bbl clean tanks with manifolds. 3. Water: Fill both 500 bbl frac tanks with fresh water. Water sourced from City of Wasilla at 17 cents per barrel. Dorwin Smith (907-355-3443 & 907- 376-3443), OJ Excavation will haul water. An equivalent 4% KCI solution will be added to all water pumped/injected into well bore. Water needs to be heated. 4. Water Truck: Evergreen water trucks in Wasilla using OJ Excavation personnel. 5. Water Heating & Steam Services: Sub Zero Thawing, Wasilla 907-376- 1569. Bernie Shones has a 2.1 MMBTu Fire Tube Boiler with up to 20 steam lines. Will use this equipment to heat water to 80 deg F for frac. 6. Pumping Services: Evergreen Well Service International Frac Fleet 7. Workover Rig: Evergreen Well Service Rig No. 1696 8. Wireline Operations: Patterson Wireline. Scott Allen (907-354-4529). 9. Haul Tubing: Haul at least 2201 feet of 2-7/8" tubing on location. Spills: Alaska Department of Environmental conservation has strict regulations regarding spills. All equipment will have plastic liners underneath them. Liners will also be run around wellhead. A transfer pump from the cellar to the tank will be in place at all times. Duck Ponds to be placed under all vehicles. Tight Hole: No information from this well may be shared with anyone outside of Evergreen Resources. Street: 1075 Check Street, Suite 202 Wasilla, AK 99654 Mailing: P.O. Box 871845 Wasilla AK 99677 Tel 907-357-8130 Fax 907-357-8340 www.EvergreenGas.com ') :: "= I~el,~ ==1'\1 I:~î!: ~[i!'U I:t,¡;; i:! $\ IU..'¡¡j¡¡¡':JI)· IDcm 1:1. ,ill ,i:IJI:i!¡jlm¡!IJ¡; ,\j¡1 'i::llrji~jjiql;!!ii', ,!ill!ij::¡¡Ji~¡¡m!:. Wh:. PROPOSED PROCEDURE (CONTINUED) ROBERT SMITH No 3 Engineer: 2nd in Engineer: Tool Pusher: EWS Manager: Accommodations: Evergreen will utilize local businesses to garner support for this project. accommodations are as follows: Evergreen Well Service: Completion Rig Crew: Patterson Wireline: Mike Polly: Personnel: John Tanigawa Shane Gagliardi Michael Polly Eric Vaughan Big Lake Motel Houston Lodge Big Lake Motel Best Western 907 -841-0000 907 -357 -8130 719-342-5600 303-881-3557 The hotel 907 -892-7976 907 -892-6808 907 -892-7976 907 -373-1776 Map to Robert Smith No.3: · This well is located in Pilot 1. All other relevant locations are shown in the map below. _.'M:~__ j ~ ,."Rê1i'~H< , ,/"',. .,/..~:;;;:;o:~' \ /1'<../" , "\' /i 'I r·....;~<5, .,"" ", \~ :j".,__)~- ,;,',::.,-~ ;11 , . Lok', . ,?~t;~'::b;:~o,"'.. ,L~~~:<::-{~:~:j ..:"rr:!r:. 1,1,11'):' I· L-_ _.._-_...'..' . . . 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"';'-= :,~f~4-~t~~~=ï · · " ~'::J~c~t·k.::~~,~j;~1,Ytk~~~~::J;~fi;'·~: Casing and Tubing Data Strenqths taken to 100% for Tubing and 1 00% of Casing Weight ID Drift Collapse Burst Yield Capacity (ppf) (in) (in) (psi) (psi) (klbs) Bbls/ft 6.4 2.441 2.347 7,680 7,260 72 0.005794 17 4.893 4.767 4,910 5,320 229 0.02217 0.01521 Tubing Casing Annulus Size (in) 2-7/8 5-1/2 ( above) Capacity Ftlbbl 172.6 45.093 70.685 Street: 1075 Check Street, Suite 202 Wasilla, AK 99654 Mailing: P,O, Box 871845 Wasilla AK 99677 TeI907-357-8130 Fax 907-357..8340 www.EvergreenGas.com , ) =\f= !I'~==I'I 1:~,!;:Q~iI1) ¡:t<;¡:: ~Î\IH.,A$If.JI,:I. ¡:;;t;Jil~ 1:1., ¡J¡,¡:!¡¡d!¡j!Jj\!!!:ii:.:;¡J'i::III!t:¡W¡!f!!1j:'!i!Ui:::Iu¡!ii¡hk,¡\I¡J. PROPOSED PROCEDURE (CONTINUED) ROBERT SMITH No 3 1. MIRU Evergreen Well Service Rig. Using Power Swivel, drill out casing to +/- 2,200 ft KB. ROMO Evergreen Well Service Workover Rig. 2. MIRU Evergreen Well Service. Install Frac Valve on 5-1/2" casing. Install Kill Line to Patterson Flow "T" or Spool (see BOPE sketch). 3. MIRU Patterson Wireline. Install fullbore lubricator and spool on top of frac valve / (see BOPE sketch). Perforate zones (2,170' - 2,178', 2,090' - 2,093' KB, 4 spf, 19 gr premium charges) for stage 1 frac treatment. RO Patterson Wireline. 4. RU Evergreen Well Service for Stage 1 Frac. Pressure test lines and Oemco Frac Valve to 4,000 psi (see BOPE sketch). Perform mini-frac using water. Fracture stimulate interval using FRACPRO analysis to design treatment on-site. Total Proppant is 88,000 Ibs. Collect at least 15 minutes of fall-off. Bleed-off pressure via flow-line. RO Evergreell Well Service. 5. RU patte. rson W~·rer ê~)Using full bore lubricator and spool on top of Oemco Frac /' Valve, set RBP 2 ~O}Æ KB at and perforate (1,933' - 1,937', 1,921' - 1,925' KB, 4 spf, 19 gr charg rzones. RO Patterson Wireline. 6. RU Evergreen Well Service for Stage 2. Pressure test lines and Oemco Frac Valve to 4,000 psi (see BOPE sketch). Perform mini-frac using water. Fracture stimulate interval using FRACPRO analysis to design treatment on-site. Total Proppant is 64,000 Ibs. Collect at least 15 minutes of fall-off. Bleed-off pressure via flow-line. RO Evergreen Well Service. 7. RU Patterson Wireline. Set RBP at ,86 KB and perforate (1,824' - 1,827', 1,802' - 1,806',4 spf, 19 gr char ..,.ones. RO Patterson. 8. RU Evergreen Well Service for Stage 3 Frac. Pressure test lines and Oemco Frac Valve to 4,000 psi (see BOPE sketch). Perform mini-frac using water. Fracture stimulate interval using FRACPRO analysis to design treatment on-site. Total Proppant is 56,000 Ibs. Collect at least 15 minutes of fall-off. Bleed-off pressure via flow-line. RO Evergreen Well Service. /J .' 9. RU Patterson Wireline. Set RBP at_y~~frKB and perforate (1,724' - 1,728', /' 1,686' - 1,690' KB, 4 spf, 19 gr cha~) zones. RO Patterson. 10. RU Evergreen Well Service for StaQe 4 Frac. Pressure test lines and Oemco Frac Valve to 4,000 psi (see BOPE sketch). Perform mini-frac using water. Fracture stimulate interval using FRACPRO analysis to design treatment on-site. Total Proppant is 64,000 Ibs. Collect at least 15 minutes of fall-off. Bleed-off pressure via flow-line. RO Evergreen Well Service. 11. ROMO Patterson Wireline & Evergreen Well Service. 12. Allow frac to heal for 3 hours. Begin to bleed-off pressure by flowing well through variable choke. 13. MIRU Evergreen Workover Rig and Evergreen Well Service Cement Truck. 14. Install and test BOP. 15. Retrieve plugs and clean out hole. Cement truck will be used to clean out hole and for well control. 16. RIH with tubing, rods, stator, pump and no-turn tool. System has bottom hole pressure gauge & cable. Set 1 joint above top perforations. Minimize use of pony rods on bottom and use no pony rods on top. 17. Install drive head and motor. Install 400 bbl tank with 1100/0 containment berm. 18. Install gas, water, pressure metering. .-"""'" Street: 1075 Check Street, Suite 202 Wasilla, AK 99654 Mailing: P.O. Box 871845 Wasilla AK 99677 Te/907-357-8130 Fax 907-357-8340 WIWI. EvergreenGas,com , '~ .I =\'=I~ ¡I~==I'I I'Cr '~!/Ü :l,:-r ~.. <:... t. A 1~~ ,n ,:::I~ 'I~I:.. '" II,'" ,1"·11 I'" '" :' 19. Place on production test. ) WELLBORE DIAGRAM PIONEER UNIT ROBERT SMITH No 3 API: 50-009-20023-00 PERMIT: 202-181 NW/NW OF SECTION 2 TWN 17 NORTH RNG 3 WEST MATANUSKA SUSITNA BOROUGH, ALASKA ~~~~1J~~.J.;iti&Th'¡Iit¡¡illN:%í~!'"'''''' ' · · · · · · · · · · · · · . · . · . · . · . · . · . · . · j: · . · : ,...", · . · · · ,. · · .. .',.> .":' '.>: '".0(0:':' '.'" '... .' .' · . · . '...' · e::':, .' .' · . · · · .', ' .' e. ' :¡/ .,:>< PSTD 20~6 It, ~ ' 12" Conductor Casing (0 to 424 ft KB) Casing Driven into ground 8-5/8" Surface Casing (Surf to 1020 ft KB) 8-5/8",23 ppf, ST&C, Limited Service Cement 210 sx 15.8 ppg Class G sx Circ to Surface 5-1/2" Production Casing (Surf to 2205 Ft KB) 17 ppf, K-55, ST&C, New 2002 Cement with 256 sx 13.7 ppg Class G sx · · Stage 4 (64,000 20/40 Proppant) · Perforations: 1,724' -1,728', 1,686' -1,690' ft KB · (4 spf, 19 gr charges, 0.48" hole) · · RBP 1,766 ft KB · · Stage 3 (56,000 20/40 Proppant) : Perforations: (1,824' -1,827',1,802' - 1,806' ft KB · (4 spf, 19 gr charges, 0.48" hole) · RBP 1,862 ft KB · · · · Sta~ ~ooo 20/40 Proppant) : ~~' . ~~~-1,937', 1,921' -1,925' ft KB C::Pf. 19 gr charges, 0.48" hole) · · Stage 1 (88,000 20/40 Propp ant) · Perforations: 2,170' - 2,178', 2,090' - 2,093' ft KB : (4 spf, 19 gr charges, 0.48" hole) · 99654 Mailing: P.O. Box 871845 Wasilla AK 99677 1-8130 Fax 907-357-8340 www.EvergreenGas.com ".. .... =\'=I~GI~==I~ ~ ') RESOURCES (ALASKA) CORP. A Subsidiary of Evergreen Resources, Inc. ) Friday, December06,2002 Mr. Winton Aubert Petroleum Engineer Alaska Oil and Gas Conservation Commission 333 West 7th, Suite 100 Anchorage, AK 99501 RE: Sundry Notice: Operational Shutdown Evergreen Resources Alaska Corp Cornhusker 4 1-0 t v...i4¡\· API No: 50-009-20024-00 Permit No: 202-1.8i"" NW/NW Section 2 Twn 17 North Rng 3 West, Seward Meridian Pioneer Unit, Matanuska-Susitna Borough Dear Mr. Aubert, As requested, attached is a sundry notice for the subject well and a well bore diagram. This well was spud on November 8, 2002 and was finished drilling on November 10, 2002. Currently the well is awaiting a directional survey and a completion program. Evergreen requests an "Operational Shutdown" for the holidays. We expect to begin fracture stimulation, using our own equipment, during the first quarter 2003. As discussed, all information regarding this well will be submitted after the well is completed. Thank you for your time and consideration. Please call me if you have any questions: office: 907-357-8130 & cell: 907-841-0000. Sincerely, EVERGREEN RESOURCES (ALASKA) CORP ~ John J. anigawa RECEIVED DEC 092002 Alaska Oil & Gas Cons. Commission Anchorage PO. Box 871845 . Wasil/a, AK 99687 . TEL 907.357,8130 · FAX 907.357,8340 ) STATE OF ALASKA ) ALASKA OIL AND GAS CONSERVATION COMMIS~ION REPORT FOR SUNDRY APPROVALS V../l)Å- 11- i 'I / () Z- /IA- ~ I '-/1107/ û1.J r 9) Go-f I d"( tl 1, Type of Request Abandon U Suspend U After Casing [J Repair Well LJ Change Approved Program [1 Pull Tubing [] 2, Name of Operator Evergreen Resources Alaska 5, Type of Well 3. Address: P.O. Box 871845 Operation Shutdown Plugging Variance Development ü Exploratory ŒJ Stratigraphic û Wasilla, AK 99687 Service!:J 4, Location of well at surface: NW/NW of Sec 2 Twn 17 North Rng 3 West, Seward Meridian 2426' FSL & 141' FEL OF SEC At top of productive interval: At effective depth: Total depth: 12. Present well condition summary Total depth: Effective depth: Measured true vertical Measured true vertical Length Size 2600 feet feet 2600 feet feet Cemented Casing: Structural Conductor Surface Intermediate Production 420' 12-3/4" 535' 8-5/8" 70 sx on bot & 10 sx on top 194 sx 15.8 ppg Class G, Circ to Surface Œ] Re-enter suspended well [J [J Time extension 0 Stimulate [] rJ Perforate 0 Other [] 6. Datum elevation (DF or KB): 269 ft KB (4 ft AGL) 7, Unit or Property Name: Pioneer Unit 8. Well number: Cornhusker No 4 9, Permit number: " r.::UFk 202-1.82-,øfIì1 ~¥ ~cXv.J 10. API Number: 50-009-20024-00 11, Field and Pool: Pioneer Plugs (measured) none Junk (measured) none Measured Depth True vertical depth 424' 539' 2581' 5-1/2" /' Could not Circulate PSI out, Remedial Cement Job R'qd 2585' Liner Perforation depth: Measured none True vertical none Tubing (size, grade, and measured depth) none Packers and SSSV (type and measured depth) none 13. Attachments: Description Summary of Proposal 0 Detailed Operations Program 0 14. Estimated date for commencing operation RECEIVED DEC 0 9 2002 Alaska Oil & Gas Gons. Commìsstou Anchorage BOP Sketch 0 15, Status of well classification as: 16. If proposal was verbally approved OilD Name of approver Date Approved 17. I hereb~th~:J'';20in: i: true and correct to the best of my knowledge. Signed 0/ · Title Alaska Projects Manager FOR COMMISSION USE ONLY Conditions of approval: Notify Commission so representative may witness Gas [&] Suspended 0 Service 0 Date 12/6/02 Approval N03~.;,l -- '::S &-'/' Plug integrity 0 BOP test 0 Location clearance D Mechanical integrity test D Subsequent form required 10- 4- 0 '3 ORIGINAL SIGNED BY t-z, ,...e-'j~ ýt-- ~~_. s· Approved by order of the Commission M L. Rill Commissioner Date / ?, ij~ 'V 2- Form 10-403 Rev 06/15/88 '~ B 0 M S B F l ! ! sU~lf IN- RIPLlCA TE 2600 ft KB PBTD 2577 ft KB CIBP 2577 ft KB Production Casing 2585 ft KB 5-1/2", 17 ppf, J-55, ST&C Could not Circulate -- PSI out Remedial Cement Job R'qd Suñace Casing 539 ft KB 8-5/8", 23 ppf, J-55, ST&C Cemented with 194 sx 15.8 ppg Class G Circ to Surface 539 ft KB 424 ft KB Conductor Casing: 424 ft KB 12-3/4", heavy wall, welded connection Cemented with 70 sx on bot & 1 0 sx on top Well Bore Diagram Cornhusker No 4 Evergreen Resources Alaska Pioneer Unit NW/NW of Section 2 Twn 17 North Rng 3 West, Seward Meridian ) ') ) =\'=I~GI~==I'I RESOURCES(ALASKA)COR~ A Subsidiary of Evergreen Resources, Inc. ) November 11, 2002 Winton Aubert Commissioner Alaska Oil and Gas Conservation Commission (AOGCC) 333 West ihAve. #100 Anchorage, AK 99501-3539 RE: Notice of Change - Well Names Section 2 Twn 17 North Rng 3 West Seward Meridian Matanuska-Susitna Borough Pioneer Unit Dear Mr. Aubert: Evergreen Resources Alaska Corp. is notifying the Commission of name changes to two well locations in the Pioneer Unit. Please update the records as follow: Permit Number API Number Old Name New Name 202-181 202-182 009-20023-00 009-20024-00 Robert L Smith 3 Cornhusker 4 Cornhusker 4 Robert L Smith 3 Please contact me should you have anyque$tions. My e-mail address is JohnT@EvergreenGas.com, and my cell phone, which is the best way to reach me, is 907-841-0000. Sincerely, URCES (ALASKA) CORP. .. RECEIVED NOV 1 9 2002 Alaska Oil·& Gas Cons. Commission Anchorage po. Box 871845 · Wasil/a, AK 99687 · TEL 907.357.8130 · FAX 907.357.8340 ; .' , l' I ) ~~~~~J~ ~~~~~!Æ / AliA~KA. OIL AND GAS / CONSERVATION COMMISSION Ii John Tanigawa Alaska Projects Manager Evergreen Resources (Alaska) Corporation PO Box 871845 Wasilla AK 99687 Re: Pioneer Unit Robert L. Smith #3 (revised) Evergreen Resources (Alaska) Corporation Pennit No: 202-182 Surface Location: 3272' FSL, 606' FEL, Sec. 2, T17N, R3W, SM Bottomhole Location: 3272' FSL, 606' FEL, Sec. 2, T17N, R3W, SM Dear Mr. Tanigawa: ) TONY KNOWLES, GOVERNOR 333 W. ]TH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Enclosed is the approved application for pennit to drill the above referenced exploration well, to expand total depth of Robert L. Smith #3 by 900 feet and the surface casing by 700 feet. The pennit to drill does not exempt you from obtaining additional pennits or approvals required by law,from other governmental agencies, and does not authorize conducting drilling operations until all other required pennits and approvals have been issued. In addition, the Commission reserves the right to withdraw the pennit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code uflless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this pennit may result in the revocation or suspension of the pennit. Please provide at least twenty- four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's North Slope petroleum field inspector at 659-3607 (pager). Sincerely, ~/~ Michael L. Bill Commissioner BY ORDER OF THE COMMISSION DATED this/J'~day of November, 2002 cc: Department ofFish & Game, Habitat Section wlo encl. Department of Environmental Conservation wlo encl. ) ) !\ Waivers for the following regulations are hereby granted for Robert L. Smith #3 (Permit No. 202-182): 1. 20 AAC 25.030 (d) (2), requiring conductor casing to be cemented to surface; 2. 20 AAC 25.033 (b), requiring drilling fluid of sufficient density for overbalance; 3. 20 AAC 25.035, blowout prevention equipment requirements; 4. 20 AAC 25.050 (a) (2), requiring well bore surveys for each 500 feet of well depth; 5. 20 AAC 2~.061 (a), requiring seismic surveys of near surface strata; and 6. 20 AAC 25.066, requiring gas detection on drilling rigs. =\'=I~GI~==I'I 't RESOURCES (ALASKA)COR~ , A Subsidiary of Evergreen Resources, Inc, ') November 12, 2002 Ms. Cammy Oechsli- Taylor, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Revised APD - Increase TD from 2,999 to 3,900 ft KB Robert Smith 3 Twn 17 North Rng 3 West Seward Meridian Pioneer Unit Matanuska Susitna Borough Dear Commissioner Taylor, Evergreen Resources Alaska requests permission to drill an additional 900 feet on the subject well evaluate the Tyonek coals and sandstones. Since the additional depth requested is beyond 500 feet, please find the attached APD and a check for $100.00. In addition, the attached APD also requests that we deepen the surface casing from 400 feet to 1,100 feet. We make this request due to our drilling experience on the Cornhusker #4, drilled this past weekend. In this well, several sloughing zones from 730 ft to 880 ft KB prohibited us from reaching our proposed total depth. By isolating these sloughing zones, we hope to reach our proposed TO. Of the four wells drilled to date, no wells have exhibited well control issues. Thank you for your assistance. I appreciate the help you and your staff have given our company. Sincerely, EVERGREEN RESOURCES (ALASKA) CORP RECEIVED NOV 1 2 2002 .lijasRa oU·& Gas Cons. Commlsslol1 Anchorage John J. Tanigawa Alaska Projects Manager PO, Box 871845 · Wasil/a, AK 99687 . TEL 907.357.8130 . FAX 907.357.8340 ~G A-, Ii 11~/o L. \ STATE OF ALASKA". fi\.t-~ it/lr/°'%- ALASKA _,{L AND GAS CONSERVATION COL JISSION PERMIT TO DRILL £/ ~ /'~ "-"Ã u_ 20 MC 25.005 F::-c;;; V; , ~,r [ ] Service [ ] Development Gas [ ] Single Zone [ ] Multiple Zone [X] Exploratory [] Stratí~raphic Test . [ J Development Oil 5, Datum tlevation (OF or K(3) 10. ~Ield and Pool OF 3' AGL 6. Property Designation Private 7. Unit or Property Name Pioneer Unit 8. Well Number Robert L Smith #3 9. Approximate spud date 11/12/2002 14. Number of acres in property 15. Proposed depth (MD and TVD) 148 3,900' MD, TVD 17. Anticipated pressure {see 20 MC 25.035 (e) (2)} Maximum surface 2027 psig, At total depth (TVO) Setting Depth Top Bottom MD TVD MD TVD 3 3 225 225 3 3 1100 1100 3 3 3900 3900 1 a. Type of work [X] Drill [] Redrîll1 b, Type of well [ J Re-Entry [ 1 Deepen 2. Name of Operator Evergreen Resources (Alaska) Corporation 3. Address P.O. Box 871845, Wasilla, AK 99687 4. Location of well at surface 3272' FSL, 606' FEL, Sec. 2, T17N, R3W, SM At top of productive interval Same At total depth Same 12, Distance to nearest property line 714 ft (State of AK) 16. To be completed for deviated wells Kick Off Depth Nt A 18. Casing Program Size Casing 12.25 8.625 5,5 Pioneer 11. Type Bond (See 20 MC 25.025) Number RLB0004711 Amount $200M 113. Distance to nearest well j 16,900 ft (BL T#1) Maximum Hole Angle vertical [X] Filing Fee [X] Property Plat [X] BOP Sketch [X] Diverter Sketch [X] Drilling Program [Xl Drilling Fluid Program [ J Time vs Depth Plot l] Refraction Analysis [ J Seabed Report [ J 20AAC25.050 Req. Contact Engineer NameIJ er: John Tanigawa (907) 841-0000 Prepared By Name/Number: John Tanigawa (907) 841-0000 21. I hereby certify th oing is true and correct to the best of my knowledge Signed Alaska Projects Manager Commission Use Only IAPI Numb~q ? /,-v-.....,;, 1 ,. /'v, I APi? ~ova, Date I See cover le~er 50 -t-t.-J I - ¿,-~¿,.....{ ~ V\ \0 (J;l for other requirements Samples Required: l ] Yes WNO '.},u(. tog Required [ ] Yes þ4.No Hydrogen Sulfide Measures: ( 1 Yes No Directional Survey Req'd [] Yes J'lNo Required W~'ling P~ess~re for BOPE: [],2M, ] ~M, ~] 5ML [] ~~~ ] 15M ..:r:.t\c.h~~~~ Other:.f!/( t'X'lð£.ýtJ r-rmff- ~fu.{iftcr;.S -.,r,J / .sur~~ Ch\!i. ORIGINAL SIGNED BY by order of 0 ,;:.tl> I: Le;I Commissioner the commission Date I ~ /~/ð ~ . Submit n Triplicate Hole 13 11 7.875 Weight 48 24 17 Specifications Grade Coupling K~55 Welded K-55 STC K-55 STC 19. To be completed for Redrill, Re-entry, and Deepen Operations. Present well condition summary Total depth: measured true vertical Effective depth: measured true vertical feet feet feet feet Casing Length Structural Conductor Surface Intermediate Production Liner Perforation depth: measured true vertical 20. Attachments Title Permit Num /0 , 2h;2. - { (....J 2- Conditions of Approval: Approved By Form 10-401 Rev. 12-01-85 1600 psig Length 225 1100 3900 Quantity of Cement (include sta~e data) 47 sx. If necessary, pour add'l cement at surface 407 sx. Circulate to Surface /' 671 SX. Circulated to surface / Plugs (measured) Junk (measured) Size Cemented MD TVD RB€&lVfD NOV 1 2 2002 Alaslèa Ofl'& Gas Gons. Commfsslon Anchorage Date Ii 1r¿(.¿Cë,~... I I .. . C" .~ ~ ¡ o:,~ ) Controlled DisbursementAccount '~';;"!:i;:;';:!:I;:':~,)I,ß. .' rg*@,el1':\~Ø,ê$~'\tI~c. es' (AI~~~Þ, ...·1 ç~.'~:\ ·'\";:::'::::;'\:;':\:::\\\i:;':I"\'{~.:'~I\\,'\¡'?\:\: . . . . . S ' " t S . . .' "\;"'1\\\\\\:,\\ :,\\"';,í\,\¡,"::{ :¡\V,\I,,:,I\\\\\: 1401 17th tree ulte··t200 \\~\\':;:\::\\\'\\\ .,,::,\,:\\:~::,\\::\\;,\,/\:\:;, 8 . \'\'\:~"1'\:'" ,'\\\\\~\\\\t" '\\\\\\\";!\\~ Denver GO . ,0202 \':.\:\~\<::\ i~\*\\\j:;::.~{ :::\~~i'\::i\!:\' "::::~,:"i:~:}\!,!{~i~~,,:\::::' :\':\:,::,:~:'::'\\\, "\\\'\:¡'¡\'i'\\'\(~¡':'\!'i:\\(::!'¡\\!~\ \\~;)~,~~~!:1> ":~:n:::,:::,\!':,,:: Check No \\;:::::.\:.I~,"~ ~:.:";.'~':.:::; :;!,'i"ß,:~:\,~i::..;~,~:~~;~;~:,,~:::\I' \ . \\\\\\\1\,\,\,:\,,\',1,.\1\\\\\"\\\'\' ï¡~i::::!~i;::';;::;"i!:'\ ~ia National Bank Check Date ,',I Check Amount One HuncJrfid Ðollars,and,zerå C~nts 0..0,7700007.9 11105/2002 ....***********~$1 00.00 ::~~II'? Void After 90 Days ORDER OF Alaska Oil and Gas , Conservation Commission' 333 West 7th AVenue #100 Anchorage ·.AK..99501 ~&?t?~ II- DO? ? 0 OOO? ~ 11-': ~ ~ ~ ~ 0 L, a ? q .:s L, 2 0 21. ? 0 L, II- é .. ~_.... ._0.. _, __.n.. __. .. ._~ .. _. _","' ..;,....~.. ........_,.. _. ... ..... _ ~_'. ........... .__. . _" ........._.......... __ ... _ _... ,.._.__.""... _.~..._. ~._ _. "... . U" .........'.u. .__ . __...... .._ _." .... "'~' """_" ..........._ __.... .._. yO '...... .~_. __ . _. _.._.... _.. \ .._~._...' __. _ __.. _ __. ....... _. _ _ . _._ ". __ . u..'_m_..'...... ,........_"__,.,___.! ^PLEASE DETACH AT PERFORATION ABOVE^ ^PLEASE DETACH AT PERFORATION ABOVE^ :V:I~GI~::N EVERGREEN RESOURCES, 'HC, ,Evergreen Resources (Alaska) Corp 1401 17th Street Suite ~200 Denver CO 80202 Invoice # Inv. Date 11 0402 JT3 11/04/2002 Permit Fees AOGCC 0.00 100.00 RE€E\VEO NOV 1 2 2002 - 10" t;Ij Oil& Gas Qøns. comm IS AtasJ\a Anèhorage I 009195 I ~ Vendor Check Date: 11/05/2002 Check Amount ~ I 100.00 I FW: Well_Location _ Evergreen.xIs ) ) Su b ject: FW: Well_Location _ Evergreen.xls Date: Fri, 11 Oct 2002 11 :40:54 -0800 From: "John Tanigawa" <JohnT@EvergreenGas.com> To: <steve _ davies@admin.state.ak. us> Steve, The original file had wellnames that were incorrect. Here is the correct file. Thank you. Have a great weekend. John Tanigawa 907-841-0000 -----Original Message----- From: Enric Fernandez [mailto:efernandez@lynxalaska.com] Sent: Thursday, October 10, 2002 3:31 PM To: John J. Tanigawa (E-mail) Subject: Well_Location_Evergreen.xls John, This is the updated file with the name swap! Enrique Fernandez Information Technology and GIS Director Lynx Enterprises, Inc. 1029 W. 3rd Ave, Ste. 400 Anchorage, AK 99501 907-277-4611 efernandez@lynxalaska.com The information contained in this communication is confidential and privileged proprietary information intended only for the individual or entity to whom it is addressed. Any unauthorized use, distribution, copying, or disclosure of this communication is prohibited. If you have received this communication in error, please contact the sender immediately «Well_Location_Evergreen.xls» L......."_.__^",''''^'_'M__'...'..'"_W^''"^"."_,^'",'^,,,,W:__,,.,.^...'M_.';,__,_,.;"W,.."'M.:."'_"';,,__~~"...,'"__^:'"','__.w .... .... ......... .."...........""..,........"'......, ../..........". .......................--.......,..............""'.....y.-........~.y...'..,,'... 1I~..N_:IIII~,..·:-:II^I:.i:.v.....##)\!«wlm:t'+"·-'»It':<<<·..o.y...'·~·'m~....·'.....u.........""u,~""........"........·..··"-'-'-'-'-...."""....""'fY''' ''+'............'WI.I'.IIIV.''''·......''''~W'....\o'·II''''\H'_IH\W'''''......·....I'..·..·tw''#~,H·_'t-\'I1!M'M'''M!¡»IWlltW''''''''''''''I''II\lI'·Y.l\II!IIIL~''''''''''I''''IIII·I':III'''T:1I1.1..:11' r _II.:II:I:"I.I:(II\~"':I\:L:. -;'~'W!Y",IIL .l. _'«~"":IV~II:II''''<IIIII\1' , Name: Well_Location_Evergreen.xls I Well Location Evergreen.xls' Type: Microsoft Excel Worksheet (applicationlvnd.ms-exceI) J Encoding: base64 ' "''11111':0'''"': . V"U~'T·I""'U·'''·I:IDIIIB\·'''':W+'.t!:':!lW''''-'''''''~''~·!·IW.~'I·''''''''':~:\1L'·....,~· ·....H'''!XI'''':II\o:t'''''v~,...v.·, ·¡..'y·...'!'...II"!.!!' ...... .........)0'>:... IIIIIIIIT ..... I.~<OX-:II...,... Evergreen Well Locations NAD 27, AK Zone 4 ) ) Subject: Evergreen Well Locations NAD 27, AK Zone 4 Date: Thu, 10 Oct 2002 11 :14:27 -0800 From: "John Tanigawa" <JohnT@EvergreenGas.com> To: <steve _ davies@admin.state.ak.us> Steve, I apologize that these have taken so long. Here are the coordinates. >From now on, we will submit all coordinates in NAD 27. Please contact me if you have futher questions. Thank you. John Tanigawa 907-841-0000 -""""'''(''''V'J''''~··''''''''~'N'''''''\M}''''''''''''I,I''''·UhWN>'!.:O(II}~:.¡.'....'''m''"""YNN.y'·~'~"·""'N''''''''''''''''''''w._'Y'Fu,.,·.''''N'N."V'''''''''···.u.,,·, "N.W.A"""....w.···,··...·.....··.WAU'·w ',"VN'I '+' \"Y":i""'''' ...'....."......."f"J.WNNf''''''>''''''MJ:b:''....."..''''.'....vNN'NJ.''.W'~v'.v.,.."....v...,...,...uv:t.t""'''..''N'..~:.'''''''''··wf·'·'·.....·."...u...u'w...'',.u'.,,'···...v····...'·····M.VNN.\MI'''''~'......W.Vo'NUN.......''''.''''''''''''''<.....···... , , I Name: W ell_Location _ Evergreen.xls ' I1Well Location Evergreen. xIs , Type: Microsoft Excel Worksheet (application/vnd.ms-exceI): _'''O~'"'O'~_W''W^~,o~",',~.,.w'~~W'~'''_~''>"'','''>W,__'~,..'~>~~"?~~.~,~..:w_~~~~?~,__ww^""o'o'"~^~'_'^'^_~'_''W_'_W^~"""'."~.w^W"""""·'"·~"W.^W,"','._,__wm'oo0'"'' AREA Pilot 1 Pilot 1 Pilot 1 Pilot 1 Pilot 2 Pilot 2 Pilot 2 Pilot 2 Pilot 3 Pilot 3 Pilot 3 Pilot 3 ') NAME D.L.SMITH #1 GARY & JOANN STROMBERG #2 CORNHUSKER #4 ROBERT SMITH #3 COOK #1 LOWELL #2 BERING #3 BARANOF #4 TYONEK #1 KENAI #2 IUAMNA #3 NANWALEK #4 EL V FT LEGALDESC 274.4 Located 3293' north of the south line and 293' from the west line of section 1 T17N R3W Seward meridian. 296.0 Located 1386' north of the south line and 933' from the west line of section 1 T17N R3W Seward meridian. 249.8 Located 3272' north of the south line and 606' from the east line of section 2 T17N R3W Seward meridian. 265.3 Located 2426' north of the south line and 141' from the east line of section 2 T17N R3W Seward meridian. 408.8 Located 991' north of the south line and 888' from the east line of section 30 T18N R1 W Seward meridian. 399.9 Located 967' north of the south line and 1329' from the east line of section 30 T18N R1 W Seward meridian. 449.0 Located 1523' north of the south line and 471' from the east line of section 30 T18N R1W Seward meridian. 403.6 Located 504' north of the south line and 423' from the east line of section 30 T18N R1W Seward meridian. 417,4 Located 301' north of the south line and 1841' from the west line of section 20 T18N R1 W Seward meridian. 418.9 Located 815' north of the south line and 1832' from the west line of section 20 T18N R1 W Seward meridian. 429.3 Located 236' north of the north line and 2403' from the west line of section 29 T18N R1 W Seward meridian. 414.7 Located 353' north of the north line and 1528' from the west line of section 29 T18N R1 W Seward meridian. ASP27Z4N ASP27Z4E DD27N DD27E 2774923.09356000000 543786.35874200000 61.59466451260 -149.74861231100 2775528.70150000000 544423.26626200000 61.59631427130 -149.74494210500 2774899.30194000000 542887.46491700000 -é1.59460882660 -149.75377352900 2774054.90335000000 543355.95720500000 61.59229425450 -149.75110236500 2783408.27296000000 584593.04550000000 61.61724205120 -149.51397565500 2783381.99302000000 584152.01484300000 61.61717914890 -149,51651058400 2783942.33402000000 585004.69554800000 61.61869441150 -149.51158763300 2782923.44787000000 585062.93452400000 61.61590632030 -149.51129695300 2788017.16180000000 587274.33011000000 61.62979282080 -149.49836720300 2788531.16269000000 587261.14713400000 61.63119900780 -149.49842021600 2787480.78035000000 587841.89235100000 61.62831369770 -149.49512903800 2787361.90624000000 586968.42649400000 61.62800698160 -149.50015429700 rr :. 0 0 , :.. I , , 0 " 0 roo o~.'''' ¥ -0 "0' 'I' ! 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( 10'd tOO'ON Ol:S1 lO,01 d3S 6909-9¿£:GI NOIltliltlJX3 '['a ) ) CHECKLIST - SPACING EXCEPTION APPLICATION OPERATOR Evergreen Resources PROPERTY ID/ LEASE FIELD/POOL Pioneer, Tyonek Undefined WELL NAME Robert L Smith #3 FEE Lease ADL 374121 VERTICAL DEVIATED x EXPLORATORY DELINEATION DEVELOPMENT X GAS OIL X SURFACE LOCATION PRODUCTIVE INTERVALS (Top and Bottom) BOTTOM HOLE 3272' FSL and 606' FEL, S. 2, T17N, R3W, S.M. Same Same Same Check applicable reason(s) for spacing exception: (1) to drill a well for oil within 500 feet of a property line X (2) to drill a well for gas within 1500 feet of a property line (3) to drill and complete more than one oil well in a governmental quarter section; or to drill and complete an oil well closer than 1000' to any well drilling to or capable of producing from the same pool X (4) to drill and complete more than one gas well in a governmental section; or X or to drill and complete a gas well closer than 3000' to any well drilling to or capable of producing from the same pool Does the application contain: YES A brief explanation for why the operator has chosen to drill the specified location. A plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well or portion of the well for which the exception is sought, all other YES completed and drilling wells on the property, and all adjoining properties and wells within 1,000 feet of a well or portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well requiring the spacing exception that is drilling for gas. The names of all owners, landowners, and operators of all properties within 1,000 YES feet of a well or portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well requiring the spacing exception that is drilling for gas. A copy of the notice sent by certified mail to the owners, landowners and operators YES described above, the date of mailing, and the addresses to which the notice was sent. YES An affidavit by a person acquainted with the facts verifying that all facts are true and that the plat correctly portrays pertinent and required data. NA If the operator requests a variance from the notice requirements of 20AAC25.055(d), sufficient information to demonstrate that it is not feasible to comply with the notice requirements because of the complexity of ownership within the notice area. ) ~~!Æ~E :} !Æ:!Æ~~!Æ / AI"ASIiA OIL AND GAS / CONSERVATION COMMISSION ') TONY KNOWLES, GOVERNOR John Tanigawa Alaska Projects Manager Evergreen Resources (Alaska) Corporation PO Box 871845 Wasilla AK. 99687 333 W. 7TH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Pioneer Unit Robert 1. Smith #3 Evergreen Resources (Alaska) Corporation Pennit No: 202-182 Surface Location: 3272' FSL, 606' FEL, Sec. 2, T17N, R3W, SM Bottomhole Location: 3272' FSL, 606' FEL, Sec. 2, T17N, R3W, SM Dear Mr. Tanigawa: Enclosed is the approved application for permit to drill the above referenced exploration well. The pennit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. The pennit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. Evergreen Resources (Alaska) Corporation assumes the liability of any protest to the spacing exception that may occur. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the penn it. Please provide at least twenty- four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's North Slope petroleum field inspector at 659-3607 (pager). BY ORDER 9QHE COMMISSION DA TED thisÁZ-'Oay of September, 2002 cc: Department ofFish & Game, Habitat Section wlo encl. Department of Environmental Conservation wlo encl. ) ') Waivers for the following regulations are hereby granted for Robert L. Smith #3 (Permit No. 202-182): 1. 20 AAC 25.030 (d) (2), requiring conductor casing to be cemented to surface; 2. 20 AAC 25.033 (b), requiring drilling fluid of sufficient density for overbalance; 3. 20 AAC 25.035, blowout prevention equipment requirements; 4. 20 AAC 25.050 (a) (2), requiring well bore surveys for each 500 feet of well depth; 5. 20 AAC 25.061 (a), requiring seismic surveys of near surface strata; and 6. 20 AAC 25.066, requiring gas detection on drilling rigs. =\'=I~GI~==I'I RESOURCES (ALASKA) COR~ A Subsidiary of Evergreen Resources, Inc. ) ') August 26 2002 Ms. Cammy Oechsli-Taylor, Chair Alaska Oil and Gas Conservation Commission 333 West th Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill: Robert Smith Number 3 NW/NW of Sec 2 Twn 17 North Rng 3 West Pioneer Unit, Matanuska-Susitna Borough Target: Tertiary Tyonek, Proposed TD: 2990 Feet Proposed Spud Date: 28-Sep-2002 Dear Ms. Oechsli -Taylor, Evergreen Resources Alaska Corporation hereby applies for a Permit to Drill for the subject well located approximately 30 miles north of Anchorage. The well is planned as a shallow, straight hole drilled to evaluate the producibility of the Tyonek Coals. A local water well drilling contractor will casing drill a 12-3/4" conductor past the base of the unconsolidated gravels and cement the conductor in place. Evergreen's Ingersoll Rand RD-20 air-drilling rig, which recently arrived in Alaska, will then drill the 11" surface hole to a depth that protects the fresh water aquifer. A string of 8-5/8" surface casing will be run and cemented to the surface. A 7-7/8" hole will then be drilled to TD and a string of 5-1/2" casing will be run and cemented to surface. The entire drilling process takes less than 3 days. Attached is information required by 20 MC 25.005 (a) and (c) for your review. Due to the differences in equipment and methods used for air-drilling coal bed methane (CBM), we require several variances from current AOGCC regulations. These variances are recapitulated in this APD. Three items are of note. First, Evergreen has already contacted adjacent mineral interest owners. All parties, whether they be the State of Alaska or the Bureau of Land Management, know that some well locations are within 1,500 feet of our adjoining property lines. All affected parties are support of our exploration efforts. Secondly, to better determine the depth that surface casing should be run, an induction log will be run to determine the appropriate depth of the surface casing for the pilot. Finally, we will run a directional survey in the first one or two wells in the cased hole to prove that down hole hammer drilling must drill straight holes. The designated contact for reporting responsibilities to the Commission is John Tanigawa, Alaska Projects Manager, 907-841-0000 as outlined in 20 MC 25.070 and 20 MC 25.071. Evergreen appreciates you and your staff's assistance during this, our first drilling campaign in Alaska. We look forward to working with you in the future. Sincerely, EVERGREEN RESOU C (ALASKA) CORPORATION ~~ hn Ta ~ Alaska Projects Manager enclosures PO, Box 871845 · Wasil/a, AK 99687 . TEL 907,357,8130 . FAX 907.357.8340 Weight 48 24 17 Specifications Grade Coupling K-55 Welded K-55 STC K-55 STC STATE OF ALASKA ALASKA, } AND GAS CONSERVATION CO~ PERMIT TO DRILL 20 AAC 25.005 I ype otwell '[] Service [ ] Development Gas [ ] Single Lone [ ] Multiple Zone [X] Exploratory [] Stratigraphic Test [ ] Development Oil ~. Datum t:levation (D" or KB) 10. Held and Pool DF 3' AGL 6. Property Designation Private 7. Unit or Property Name· Pioneer Unit 8. Well Number Robert L Smith #3 9. Approximate spud date 9/28/02 14. Number of acres in property 15. Proposed depth (MD and TVD) 148 2,999' MD, TVD 17. Anticipated þressure {see 20 AAC 25.035 (e) (2)} Maximum surface 1559 pslg, At total depth (TVD) Setting Depth ' " Top Bottom Quantity of Cement MD TVD MD TVD (include stage data) 3 3 225 225 47 sx. If necessary, pour add'l cement at surface 3 :3 400 400 148 sx. Circulate to Surface 3 3 2999 2999 535 sx. Circulated to surface VJGA- qI51(j~L )SSION -..Hr",IIf/-z-z.. 1 a. 'I ype of work [X] Drill [] Kedrilll1 b. [ ] Re-Entry l ] Deepen 2. Name of ðperator ' Evergreen Resources (Alaska) Corporation 3. Address P.O. Box 871845, Wasilla, AK 99687 4. Location of well at surface 3272' FSL, 606' FEL, Sec. 2, T17N, R3W, SM At top of productive interval Same At total depth Same 12. Distance to nearest property line 714 ft (State of AK~ 16. To be completed for deviated wells Kick Off Depth N/A 18. Casing Program Size Casing 12.25 ' 8.625 5.5 Pioneer 11.\ ype Bond (See 20 AAC 25.025) Number RLB0004711 Amount $200M 113. Distance to nearest well , 16,900 ft (BL T#1 ) Maximum Hole Angle vertical 1230 pslg Hole 13 11 7.875 Length 225 400 2999 19. To be completed for Redrill, Re~entry, and Deepen Operations. Present well condition summary Total depth: measured true vertical Effective depth: measured true vertical feet feet feet feet Plugs (measured) Junk (measured) Casing Length Size Cemented MD TVD Structural Conductor Surface Intermediate Production Liner Perforation depth: measured true vertical 20. Attachments [X] Filing Fee [X] Property Plat [X] BOP Sketch [X] Diverter Sketch [X] Drilling Program [X] Drillin~ Fluid Program [ ] Time vs Depth Plot [] Refraction Analysis [ ] Seabed Report [ ] 20AAC25.050 Req. Contact Engineer Name/Number: John Tanigawa (907) 841-0000 Prepared By Name/Number: John Tanigawa (907) 841-0000 21. I hereby certify~hat the fo . ,i"ng i nd correct to the best of my knowledge Signed _ L..-~ ~ Title Alaska Projects Manager Date é/é6, z:a:rë.. Commission Use Only Permit Number fa API Number '" / 0·7'\ 2-D:; - ù ~(). ~ - 2C;:O'¿y.. - L./ Conditions of Approval: Samples Required: [ ] Yes f'.l'No Hydrogen Sulfide Measures: [ ] Yes MNo Required W,,>rking Pressure for BOPE: [] 2M, -[] 3M, Oth~RIGINAL SIGNED BY D Taylor Seamount Approved By Form 10-401 Rev. 12-01-85 Commissioner AJ>PfO] I ~te I See cover letter <.1¡(Þ 0 t/î for other requirements M d Log Required [ ] Yes .ÞðJo Directional Survey Req'd - 1es X No [ ] 5M, [] 10M, [] 15M _ j' 1- .J.i1U I i11Tlë"h ~'(.Jr-~ ~~ ~/ Date 9~(J h~ SUb~(I;(~riPlicate by order of the commission ) ') =\(=I~GI~==N RESOURCES (ALASKA) CORP, A frllt!('tlrlillry or (;vC'f)]nml1 Rm':(lurc',.'I, Inc. Permit To Drill Additional Information 20 AAC 25.005 (C 1) $100 FEE Check attached to application 20 AAC 25.005{C 2) PLAT IDENTIFYING PROPERTY AND OWNERS The mineral interest ownership map and the survey plat are shown in Figures 1 and 2 respectively. Figure 1 shows the subject well within Pilot Number 1. It also shows the mineral interest owners including a 1,500 foot radius around each well. 2 v .. 1,500 ft radius 1,500 ft radius 1 State of Alaska (Evergreen) State of Alas (Evergreen 1,500 ft rac ius Figure 1 Mineral Ownership Map and 1,500 foot radius around each well in Pilot 1 Coordinates of the location at surface, top of each formation, at total depth Surface Top Tyonek Total Depth Hole Locations 3272' FSL & 606 FEL OF SEC 2 Twn 17 North Rng 3 West 32721 FSL & 606 FEL OF SEC 2 Twn 17 North Rng 3 West 32721 FSL & 606 FEL OF SEC 2 Twn 17 North Rng 3 West (a) Coordinates in state plane coordinates Surface Top Tyonek Total Depth Hole Locations North 2774603 ft & East 1682862 ft ASP Zone 4 Nad 83 North 2774603 ft & East 1682862 ft ASP Zone 4 Nad 83 North 2774603 ft & East 1682862 ft ASP Zone 4 Nad 83 APPLICATION FOR PERMIT TO DRILL Robert Smith 3 Pilot 1 =V=I~GI~==I'I RESOURCES (ALASKA) CORP, A $/J,'I:/¡1"/iruy or Ev;n'l7rtwn ROJ1nuft~m;r I(lè Aug-12-02 18:01 ) From-LOUNSBURY & ASSOCIATES, INC. NOTES: 1. COORDINA YES SHOWN ARE NAD83 ALASKA STA TE PLANE ZONE 4. 2. GEOGRAf'HIC COORDINATES ARE NAD 83. J. ALL DISTANCES ARE: GROUND IN U.S. SURVEY FEET, 4, VERTICAL DATuM IS M.S.L. NGVD 1929. BASED ON BENCHMARK "L10:S" ROBERT SMITH #3 LOCA TED 3272' FROM THE SOUTH LINE AND 606' FROM THE EAST LjNE OF SECTION 2 T 17 N, R 3 W, SEWARD MERIDIAN AT LAT. 61·,35'38,l.32"N LONG. 149·45'22.711"W ASP ZONE 4 N=2774602,915 E""1682861.812 (NAD 83) GROUND ElEvA nON - 249.8' t/jDJ'.i N ~ SCALE ," = 1 000' N 89''/7'39" E 2030,72' MC......" Î'~ SECTION 2 T17N, R3W, S,M" ALASKA ) T -492 ..... =J~' -0 . U II ..-::-= N 69'54'40· E 16.540.82' <D N 89·55'07" E 1318,81' N ð~'41'47" f 2311i1,29' ~ ~~ ~~ ì-. ro. ~ "Z TRACl "F" (CACHE SU60.) w .1 (II 13'¡~.34P TRACT "D" (CACHE SUBO,) "" '!.t 10 ~ O¡"N egOS4'S3" W 10 d ~ In o 1313.55 N o N 8 z SECTION 1 '!..o ~ T17N, R3W, S,M" ALASKA 8 '11' 2 ., :2 ~ " N 89'5'/'46· W 131B.91' P'S SS¡°48'S7' W PILOT 1 WELL ROBERT SMITH #3 PERMIT DRAWING DRAWN FIVW I CHECKm KWA I SCALe l' = 600' APD Robert Smith 3 Pilot 1 .. 0LOUNSBURY & ASSOCIATES, INC. e ENGINEERS-PLANNERS--SURVEYORS " 723 'iV, 6th AVE. ANCHORAGE, ALASKA 99501 (907) 272-5451 AUGUS 12, 2002 DWG NAME 028-2W.3.DWG =\f=I~GI~==N RESOURCES (ALASKA) CORP, A ,'ìutJ.~I(/iIllY 0' f.\11'1'1.¡m/~{' Rm1"'II'I~tl'>, Iflr. ) -) (b) Proposed Depth, Depth of each objective formation Estimated Formation Tops Quarternary Gravel Surface Tertiary Tyonek 200 (c) Other Information as required by 20 AAC 050(b) For all hole segments, an air hammer will be used to drill the hole. Unlike PDC or conventional bits, air hammers, inherently drill straight holes. This is because the weight on bit is a fraction of the weight required by conventional drilling techniques. Increased weight on bit causes holes to become deviated. For additional information, please refer to Evergreen's response to the waiver request in Appendix A of this application. Since air hammers have not been widely used in Alaska's oil and gas industry, Evergreen will perform a Totco deviation survey for this well. This information will confirm to the commission that air hammers, by their design, must drill straight holes. It is our aim that after showing the commission that air hammers drill straight holes, that surveys will not be required. 25 AAC 25.005 (c 3) DIAGRAM OF BOPE Evergreen will use air to drill conductor, surface and production holes. Using this system, we plan on using a diverter in lieu of a BOP since our proposed diverter system is an equally effective means of well control in shallow gas wells. This discussion is included as Appendix A submitted August 8, 2002. A diagram of Evergreen's well control arrangement is shown in Figure 3. Evergreen Resources Alaska Surface Well Control Setup Two diverters will be used while drilling the subject well. One for the 11 inch surface casing hole and the other for the 7-7/8 inch production casing hole. For the 11" surface hole, the diverter will connect to the cemented in conductor via a 13- 3/8" ST&C collar. The Production hole's diverter will connect to the cemented in 8-5/8" surface casing via the 8-5/8" ST&C collar. These diverters are shown in the Figures 4 and 5. APD Robert Smith 3 Pilot 1 ".~..-~1""..,~..~-~,§J?,~!"~~,~.,~~!~~~-..;~~9:-~"~~;~P-è~~J~~~+~1~,~.. \ VENTING , »i 20 MMSCFD KICK r Ground Level FORMATION GAS This schematic shows Evergreen's Air Drilling well control setup. When venting a 20 million standard cubic foot kick of methane. the diverter must contain 40 psi of pressure. The Diverter is rated to 500 psi while drilling and 1,000 psi while static. This is a 12 fold safety factor while drilling and a 24 fold safety factor when pipe is not rotating. Figure 3 - Surface Well Control ") ) =\f=I~GI~==N RESOURCES (ALASKA) CORP, A $¡Jb~l(fifllY 01 EVflrrm~/m R(t~DlIrclJ'[', Inc EVERGREEN RESOURCES ALASKA SURFACE CASING DIVERTER EVERGREEN RESOURCES ALASKA PRODUCTION CASING DIVERTER I --I µ il " ........... '..... 161n .....,__ 151n I ,-, ,-,,-, WASHINGTON OIVERTER {JJ ~ {J.J-- ~~~H~:l~~~ ," .,.. ___) e 9 ~~ . ,//' -- .,. /' --, I 151n I _,-, r- ,-, ,-,,-, WASHINGTON OIVERTER I Ll II II II L~ ~~~~~~~~El~~~~ I a LJ::I- LÌ=fJ LÌ=fJ.s:r (See Belowl "" ,I // 16 In ".....,'..................",. ,......///' = To 30 FT BLOOEY LINE B-5/B·, 23 PPF, J-55 CASING 8.097" 10 wllh Hommer Union connector To 30 FT BLOOEY LINE 8·5/8',23 PPF, J-55 CASING 8.097" 10 Vv1th Hommer Union connector = ..- CONNECTOR Iso 13·3/8" PIN ST&C, 8 RO, J·55 :8 r".~" CONNECTOR 8·5/8" PIN ST&C, 8 RO, J·55 Figure 4 Surface Casing Diverter Figure 5 Production Casing Diverter 25 AAC 25.005 (c 4 A) MAXIMUM BOTTOMHOlE PRESSURE The maximum anticipated surface pressure (MASP) for this air-drilled well will equal the formation pore pressure less a full gas column to the surface. Based on offset well data, the highest formation pressure expected in this well is 1,559 psi (10.0 ppg EMW) at the well's TD of 2,999' TVD (or 0.520 psi/ft). Complete evacuation of the well bore, except for a 0.11 psi/ft gas gradient, is assumed. MASP (pore pressure) = (2,999 ft)(0.520 - 0.11) = 1,230 psi 25 AAC 25.005 (c 4 B) DATA ON POTENTIAL GAS ZONES One gas bearing zone will be encountered during the drilling of this well, namely the Tertiary Tyonek formation. Here, coals will be drilled through along with sandstones and siltstones. There are six wells that have penetrated this zone within the Pioneer Unit. The Quarternary Gravel will also be penetrated. This zone has no gas since there are no barriers for accumulation. This is the area's fresh water aquifer. 25 AAC 25.005 (c 4 C) POTENTIAL DRilliNG PROBLEMS Since air drilling will be the drilling fluid for this well, problems associated with differential sticking and loss circulation zones, as identified in the regulations, are not relevant. However, issues associated with hole sloughing are a concern. For this reason, 12-3/4 inch conductor casing will be casing air drilled through the Quarternary APD Robert Smith 3 Pilot 1 ) ') =\I=I~GI~==N RESOURCES (ALASKA) CORP. A $llt.J,~I!'1inty (II EYjOl'l¡n~tfl' R(.'\(.Iw\~W, /111': Gravel section. This interval will then be cemented in with 47 sacks of cement to prevent water and gravel from sloughing through the conductor annulus. Significant gas volumes produced from formations are easily handled during drilling and this is discussed in Appendix A. To ensure that casing and logs can be run safely, if sufficient gas is being vented, then the well will be killed. On site will be a cement pump, mix tanks and sufficient chemicals to create a 10.5 pound killing fluid. The risk of encountering H2S is negligible. No wells drilled in or near the Pioneer Unit had any indications of hydrogen sulfide. Further, coal bed methane does not contain H2S. Details for H2S are discussed in Appendix A submitted to the commission on August 8, 2002. 25 AAC 25.005 (c 5) FORMATION INTEGRITY TEST Formation integrity tests are not applicable for this application since air drilling with a diverter is being employed. Formation integrity tests require a pressure containment scheme using BOPs to be relevant. Please refer to Appendix A of this application for further discussion. 25 AAC 25.005 (c 6) CASING AND CEMENT PROGRAM The casing and cementing program for the subject well is shown below. For the first well drilled in Pilot Number 1, a single induction log will be run to confirm that the surface casing is set through the fresh water zone. We will drill and set surface casing below the fresh water zone. All remaining surface casing depths will be modified based on this information. Current setting depths are well below all fresh water wells in the area. Casing Information Depth OD ID Pipe Weight Connection New/Used (ft KB) (in) (in) Grade (Ib/ft) Type Conductor 225 12-3/4 12.00 Line Pipe 48.0 ST&C Limited Svs Surface 400 8-5/8 8.097 K-55 23.0 ST&C New Production 2990 5-1/2 4.892 K-55 17.0 ST&C New For the surface and the production casings, the cement will be circulated to surface. In the case of the conductor pipe, we will attempt to circulate cement with 47 sacks of cement. If cement does not circulate, which is likely since this is a gravel interval drilled with air, then we will fill the annular volume with cement. Cement Information Volume Yield (sacks) (ft3/sk) Type Comments 47 1.18 Class G Circulate, if no circulation, then pour from top 148 1.2 Class G Circulate to Surface 535 1.35 Class G Circulate to Surface Conductor Surface Production Depth (ft KB) 225 400 2990 20 AAC 25.005 (c 4) DIVERTER SYSTEM The diverter system is described in 25 AAC 25.005 (c 3) BOP SETUP. 20 AAC 25.005 (c 8) DRilliNG FLUID SYSTEM APD Robert Smith 3 Pilot 1 ) ') =\I=I~GI~==N RESOURCES (ALASKA) CORP. A StJbs,rrl¡'",y 01 F.v~ft7mml R('MurC(IS, I/'It, The subject well will be air drilled and therefore utilize no fluid system. The proposed process of air drilling and of killing the well when and if necessary are described in detail in Appendix A dated August 8, 2002. 20 AAC 25.005 (c 9) ABNORMALLY GEOPRESSURED ZONES There are no abnormally geo pressured wells in the Pioneer Unit as discussed in Appendix A, submitted on August 8,2002. 20 AAC 25.005 (c 10) SEISMIC REF ACTION IRE FLECTION ANALYSIS Evergreen requested a waiver for running seismic as detailed in Appendix A, submitted on August 8, 2002. 20 AAC 25.005 (c 11) OFFSHORE, SEABED CONDITIONS Not applicable. This is an onshore well. 20 AAC 25.005 (c 12) EVIDENCE OF BONDING Evergreen Resources Alaska's state wide bond is on file or will be very shortly with the commission. 20 AAC 25.005 (c 13) COPY OF DRILLING PROGRAM A copy of the drilling program is shown as Appendix B. 20 AAC 25.005 (c 14) DRILLING MUD & CUTTINGS DISPOSAL Evergreen has received permission from the Matanuska-Susitna Borough to dispose of drill cuttings at the borough landfill. Because well depths are less than 3,000 feet, we also have permission to dispose of the cuttings at the drill site. 20 AAC 25.005 (d) INTENTIONALLY DEVIATED WELLS This well is not being intentionally deviated 20 AAC 25.005 (e) MULTIPLE BRANCH WELLS This well will not have multiple branches 20 AAC 25.005 (f-h) n/a APD Robert Smith 3 Pilot 1 =\I=I~GI~==I'I RESOURCES (ALASKA) CORP. ASIJb.(¡lrliIlI'fOff\¡pf¡]íl,¡.'¡IR(I.!1"III"\.:m;:, I",,:. APD Robert Smith 3 Pilot 1 ) ') Appendix A Answer to AOGCC Questions ) =\I=I~GI~==N RESOURCES (ALASKA) CORP. ¡.\ Bllb!l/I'tt'nry or (vNflrí'iN1 niJ!I(JHft~!/~, Int. =\I=I~GI~==I'I Evergreen Resources Alaska Corporation Response to AOGCC Questions August8,2002 John Tanigawa Alaska Projects Manager Wasilla, Alaska 907 -841-0000 APD Robert Smith 3 Pilot 1 ) ') =\f=I~GI~==N RESOURCES (ALASKA) CORP. A $¡¡bsldimy or r::~~'I1r(i'(tn R(]1J!'JurçtJs, /"r: Waiver #1 - 20 AAC 25.030(d)(2)- Don't want to cement 100' to 200' conductor to surface. Win use 10 sacks. Surface csg must be set below the glacial gravel section. The gravel section is 500' to 800' thick, not 100' to 200'. The map (Figure 4) is a structure map using sea level datum. You have to add the topographic elevation to get the true thickness. Coals and permeable sands which may be gas bearing are present immediately underlying the glacial gravel section. (l)What would you do to mitigate risks if you drilled a free gas zone prior to setting surface csg? (2) How will free gas affect your cementing plans? (3) Does the fact that you will be setting the conductor in a permeable gravel zone change your ideas about your cementing plan? First, we must make a correction to figure 4 in the C Plan exemption document. Figure 4 does not represent the top of the Tyonek. The figure is improperly labeled. Instead, this is an isopach map showing the thickness of the gravels based on water well data. You are right, if this were a Tops map for the Tyonek, then the 500 to 800 feet would be correct. (1) To mitigate the risks of encountering a gas zone while drilling the surface casing, Evergreen will a) set and partially cement a 12-3/4" conductor casing (to protect fresh water & prevent water from entering well bore during surface hole drilling), b) Use a diverter (to redirect gas from annulus), c) Utilize a series of check valves in the drill string (to eliminate gas up drill pipe) and d) Drill with air. Described below is a description of this process and how it will mitigate dangers during this portion of the well plan. a) Evergreen will hire a water well contractor to casing drill (e.g., casing is drill pipe) the conductor through the Tertiary gravel and into the top +/-25 feet of the Tyonek formation. Depths are estimated to be 100 feet in Pilots 2 and 3 and 200 feet in Pilot 1. This section of the hole will be reverse circulated using air. After the casing is set, a 13-3/8",ST&C, 8 rd, J-55 collar will be installed at surface via a bell nipple. We will attempt to circulate cement to surface using 20-30 sx of 15.6 ppg cement or 150% of the annular volume. If cement does not circulate, which is likely in an air drilled hole through gravel, then we will pour additional cement sacks from surface until full. Before drilling out, the conductor will be pressure tested to 100 psi or ~ psi/ft of the conductor setting depth. The conductor, therefore will be sealed. It is noted here that the primary reason for cementing the conductor is to prevent water from entering into the well bore while drilling the surface hole and not for kick protection. This is because, kick protection in the traditional sense, is not needed in an air drilled hole. b) Next, a 13-3/8" x 4-1/2" drill pipe diverter will then be installed. The diverter will screw into the conductor casing. The 11" surface hole will be drilled using an air hammer bit at 3,000 scfm of air. The diverter will redirect air, methane, cuttings, APD Robert Smith 3 Pilot 1 =\I=I~GI~==i'I ) ') RESOURCES (ALASKA) CORP. A Sub.~rrlillty of EVlPrg'ri,¡,rt R(t$ðUf\.~¡S, Inc, and water from the annulus to the cuttings pit via an 8" diameter by 30 foot blooey line - well away from the drilling table. This diverter head is fabricated by Evergreen, has been used for 7 years, has drilled over 575 wells in a variety of working conditions. Pressure rating is estimated to be 250 psi working and 500 psi static, which is half of a similar Washington or Williams diverter. This pressure rating should be adequate. For example, if 100 MCFD of methane gas were being vented, the diverter would see approximately 20 psi of pressure. c) We must also prevent natural gas from flowing up through the drill pipe during connections. This is handled through a series of check valves inside the 4-1/2" drill pipe. d) Finally, as will be shown later in this report, handling shallow gas kicks is arguably safer using air than in mud drilling. This is because well control is not based on containment of the formation pressures, where high pressure BOP's, and very large (in excess of 16 inches) are required. Instead, the formation is allowed to vent and high pressures are not allowed to build-up. (2) A free gas zone does not affect our cementing plans. Surface cement will have a density of 15 ppg. (3) We plan to sent the conductor casing below the gravel zone and into the top of the Tyonek formation. We plan to drill roughly 25 feet into the Tyonek. We were not planning on setting above the Tyonek. Waiver #2- 20 AAC 25.033 (b) Drill under balanced with air. (1) There are some permeable sands in the section. Some coals may also be permeable and may contain only gas and no water. Your plan is to have fluid and cement on location. Do you understand that the BLT #1 tested individually up to 40BBLS/hour of gassy water from several sands and one coal suggesting artesian or other type of over-pressured systems? We think that the Pittman well also encountered gas sands. You should verify that. (2) Have you evaluated the mud weights in wells drilled in the area? (3) What volume of air will you be using? Would it be sufficient to dilute a zone capable of 2000mcfd to below lower explosive limit (LEL) at hydrostatic pressure? (4) What is the maximum expected equivalent mud weight attainable from the drilling air? (5) What equipment is available to pump kill weight fluid and how will it be pre-staged? What would be the response time if a kick occurred? (1) You are correct for the BL T #1 there was a 40 bbllhr flow of gas cut water. We were unable to find information at the commission library regarding the Pitman #1 well. However, If we encounter 40 bbls/hr of gas-cut water, this will not be a problem. We have effectively air drilled with water rates in excess of 250 bblslhr of gas-cut water, further, we will have the pump equipment, and additives to kill the well on site. (2) We have evaluated the mud weights in the area. This data is shown in the table below. Generally, wells were drilled with muds in the 9.5 to 10.0 ppg range for the depths we are drilling. (3) The volume of air we will be 2,000 scfm for the 7-7/8 inch hole and 3,000 scfm for the 11 inch hole. The lower explosive limit (LEL) in ideal conditions is 50/0 and the APD Robert Smith 3 Pilot 1 ) ) =\f=I~GI~==N RESOURCES (ALASKA) CORP. 10\ Slibml1¡'",y of f.VI'lIPIl'¡'11 RØflOt¡I't.~U'li, Inr.. Upper explosive limit (UEL) is 120/0 by volume of methane in air [U S Bureau of Mines, R.I. no. 4751, 1950]. At concentrations above the LEL threshold, the air- methane mixture capable of ignition. Formations can therefore flow up to 144 Mcfd of methane in the 7-7/8" production hole and 218 Mcfd in the larger surface hole before fire is possible. Even when one drills wells in this condition, down hole are almost unheard of in CBM reservoirs. This is because even when one is in the explosive window, it is virtually impossible ignite the gas. Ignition sources in these shallow wells are principally thought to be from the bit cutting the rock and drill pipe rotating against a formation or surface/conductor casing. While operating an air hammer however, water is injected into the compressed air at 20 gpm to cool the bit and the hammer mechanism. This water mixture creates a fine mist that prevents sparks from occurring. Further, formation waters are produced during the drilling that further wets the system. Proof however is evident in the fact that thousands of wells have been drilled into CBM reservoirs using air without any down hole fires. (4) The maximum bottom hole pressure just above the bit in the annulus is 30 to 70 psi while air drilling the production hole at 3,000 feet. Mud weights are very low. (5) Equipment that will be on hand to kill the well will be Evergreen's cement unit, batch mixer consisting of two 75 bbl mix tanks water and weighting aQents to build two batches of 10.5 ppg mud (or a single 13.5 ! ~ ppg mud). Evergreen's portable cementer is shown in the figure below. This pump has 4.5" plungers and is capable of pumping at 6,228 psi at 13.3 bpm. The two 75 bbl batch mix tanks are designed to be used as a cement mixer or as a mud tank and are equipped with Evergreen Cement Portable Pump paddles to mix the weighting agents into the water. Calcium chloride will be our weighting mechanism, xanthan guar will be used to build viscosity and lost circulation material (bark, celoflake, et cetera) will be used to assist in lowering the fluid loss. Concentrations of each are the following: 123 Ibs/bbl CaCI, 1.5 Ibs/bbl Xanthan guar and 10 Ibslbbl lost circulation material. A Evergreen Portable Batch Mixer 28 foot trailer will house the chemicals and will be on location at all times. Waiver #3- 20 AAC 25.035- No BOPE. (1) Have you examined the Houston # 1 and #2 well histories and operations? These wells were drilled with air up to 500' into the coal sections without even a diverter. Ignore Houston #4 since it spuded in metamorphic basement. (2) Can you demonstrate that you have a means of well control that is equally effective to a BOPE? I will do this. APD Robert Smith 3 Pilot 1 ) ') =\I=I~GI~==I'I RESOURces (ALASKA) CORP. A $f/b...lt1i",y 01 r:v""'1r~'(U R080Ufl~W, Inc (3) Your report states that you will have a lOOOpsi diverter. Is that the pressure rating of the pipe or actual drilling air pressure? Does that imply that you will be using different equipment than what the Commission observed in the Raton Basin? We need a more clear description of your well control equipment. I will do this. I will need some help with CAD work though. (1) The GRI, Inc's Houston 1,2 3 & 4 well records are unavailable to Evergreen. We have talked to people and have read reports on this project. These wells are relevant due to their close proximity to the Pioneer Unit. Four CBM wells were drilled representing the first time that air drilling technology was employed in Alaska. BOP's were installed after the surface casing, drilled 700 feet into the Tyonek formation, was set (Evergreen as a comparison will drill +/- 25 feet into the Tyonek. Wells were then drilled to roughly 2,100 feet and 4-1/2" casing was run. Coal, sandstones and siltstones were encountered from surface to TD. Although shallow gas was venting during the entire drilling process (even w/o a diverter during surface hole drilling), because the well was allowed to vent and not build up pressure, no well control issues arose and the BOP was never engaged for well control purposes. The successful drilling of these four wells proves that air drilling is an effective way to drill the shallow Tyonek formation in this area. (2) Not only will Evergreen demonstrate that we have an equally effective means of well control but, in fact, air drilling at these shallow depths is safer than mud drilling for shallow gas kicks. Mud drilling relies on always being in an overbalanced drilling condition. As history shows, this does not always happen. When kicks occur, the key to safety is detecting before the well becomes uncontrolled. Detecting shallow gas kicks are difficult since they are relatively hard to detect and because they occur very quickly. The well control strategy in mud drilling is pressure containment. For this reason, elaborate BOP's, choke manifolds, gas busters and very large blooey lines, like those stipulated in the AOGCC regulations are required. Air drilling on the other hand, has a completely different approach to well control. In air drilling our strategy is to allow the well to continually kick. The beauty in this strategy is that pressures are not allowed to build-up thereby eliminating the need for a BOP. Gas is redirected away from the drilling table to the cuttings pit via a blooey line and a diverter head. A Diverter head has a rubber element that seals the annular area between the casing and the drill pipe. To prevent gas from migrating up the drill string, a series of check valves (floats) will be incorporated. If a shallow gas zone is encountered, then the formation is allowed to vent while drilling ahead until bad hole conditions or excessive amounts of water are produced. APD Robert Smith 3 Pilot 1 =\I=I~GI~==I'I RESOURCES (ALASKA) CORP. A $(Jb.~I(fiIllY 01 r::\I~'I~rm" ROMUh~I1S, I/'It 4·1/2' ~)pe L...VÇI~IÇÇIII'Ç~\JUI"'Ç~ nIQ~"Q SurfaceVVelJControlSetup ") The amount Washington gas that can 50Qpsj safely vented ~~::er drilling is considerable. illustrate, using Evergreen's This schematics Proposed Set foot kick of met ~ drilling and 1,00"0 psi whi consisting of pipeJsnötrotäting. Washington stripping head sealing 4-1/2" drill pipe on 8-5/8" casing, 30 foot by 8" 10 blooey line, venting 20 million cubic feet of gas per day will generate 40 psia (25 psi gauge) of pressure below the diverter. [Reference: Equation 8-3, Air and Gas Drilling Manual, Lyons et ai, McGraw Hill Press, 2001]. This is a lot of gas - roughly 7 times that of our air injection rate. Since the Washington Head is rated to 500 psi dynamic (e.g., while the pipe is rotating) and 1,000 psi static, a 12 fold safety factor still exists when venting while drilling and a 24 fold safety factor while pipe is not rotating. 125 psi gate valve 30'x 8" 10 Blooey Line VENTING 20 MMSCFO.KICK of be in air Ground Level To up a Finally, if too much gas is being vented, especially during the running of casing and open hole logs, then Evergreen will kill the well by pumping gelled water down the hole. If necessary, a weighted mud system, as described in the previous mitigation measure, will be implemented. Here a cement pump, batch mixer and materials to make a 10.5+ ppg mud will be on location at all times. So far this year, Evergreen has drilled over 42 miles of hole using an under balanced fluid, diverter head and blooey line like the ones proposed here. There have been no well control incidents this year or in any year previous. Simply put, if the well vents too much gas, we get a water truck and pump water to kill the well. In this case, no cement pump is on stand-by on location. (3) Evergreen will utilize two different diverter heads - one for the 11 inch surface hole and one for the 7-7/8 inch production hole. The surface hole diverter is of Evergreen manufacture. The body consists of a 16 inch 75 ppf piece of casing 20 inches high. The bottom has a 13-3/8" pin connector that screws directly into the conductor. There is a 8-5/8" 00 opening (8.097" ID) that mates directly with the 8-5/8" blooey line. On the top is a 9 hole threaded flange where the Washington head is APD Robert Smith 3 Pilot 1 Surface Hole Oiverter Rubber Element -+-- 15'·---- 9,'" ';:;'C"_"~':;-;"'I ... --, ~ ~ t '.. g --1_ S T 2CK SIZES ..¡c 1 c-:... 2'· 2 7"S '::Cï(:·g 3 ',2 ·~c',c c ~ i.2 =\I=I~GI~==N RESOURC~S (ALASKA) CORP, A $4It~,~ldi/ll)' of Evllt'l1r(/II R'Jfli:'\IlI\'t~.~, I(lf. ) ') screwed in. This is the diverter seen in by the AOGCC in Colorado. Photos of the head and the rubber element are show to the right. Because of its similar design and materials, compared to the Washington heads, Evergreen has not pressure rated this head. However, from experience, we estimate that it can handle up to 250 psi dynamic and 500 psi static of pressure or 500/0 of the manufacturer's rating for the rubber element. As the calculation in the previous section answered, 250 psi provides several orders of magnitude of safety factors when drilling surface holes. This same head has been used over 1,000 hole sections in Colorado. The production hole will utilize a 1358 Washington Stripping head. This head has an 8-5/8", ST&C, 8 round pin on bottom that directly screws into the 8- 5/8" surface casing. There is an 8-5/8" OD opening that connects directly with the 30 foot blooey line. For both the production hole and the surface hole, the same rubber stripping element is used. Pressure ratings for this head are 500 psi dynamic (Le., while drilling) and 1,000 psi static (Le., while the pipe is not moving). A picture of the Washington head is shown to the right. The only difference between this head and the one we plan to use is that the bottom here is Production Ho.le Diverter flanged whereas Evergreen's has an 8-5/8" pin. Waiver #4- 20 AAC 25.050 No directional surveying. (1) Well is meant to be vertical. The drilling assembly cannot deviate because of its mechanics. However approval of this waiver will probably be dependent on proximity to property lines. Do you have the ability to run a well bore survey log? (2) Can you expand on the reasons deviation of the wellbore will not be significant? (1) Evergreen's drilling rig is not equipped to run (Totco) surveys. This is because the well documented fact that air drilling using a hammer must, because of the physics of the system, drill vertical holes. Evergreen will however run Totco surveys via cased hole wireline in the first two wells to prove to the commission that this drilling method produces vertical holes. (2) Evergreen utilizes an Ingersoll Rand Quantum Leap down hole hammer located immediately above the bit. This mechanism is basically a jack hammer located down hole. Air passing through the hammer actuates a piston that that cycles roughly 700 times per minute. Effective stroke on the hammer is roughly 1/5thS of an inch. Pressure required to actuate the hammer action is 200 to 450 psi. In terms of energy transfer to the formation for drilling, the air Hammer is an extremely efficient way to drill. Penetration rates exceeding 200 feet per hour are typical. Shown to the right is a schematic of a down APD Robert Smith 3 Pilot 1 =\I=I~GI~==N RESOURces (ALASKA) CORP. A S¡ib.~¡,·fiIllY 0/ £\lo'IrpriW/1 R(lMilfI;1fI~, 11'11': ) ) hole hammer and bit. The primary reason that air hammer drilling produces straight holes is because of the low weight on bit required to drill efficiently. Ingersoll Rand recommends that for an 7-7/8" hole, the weight on bit be 3,900 Ibs or 500 psi per inch diameter of hole. More weight would inhibit the hammer's action causing the bit to simply drag across the formation instead of hammering into it. As a comparison, traditional bits require 3,000 to 6,000 pounds of weight per inch diameter of hole drilled. This means that for an 7-7/8" hole, one would need 24,000 Ibs to 48,000 Ibs on the bit to drill. The weight on bit has a profound effect on how vertical a hole is - less weight means straighter holes. Lubinkski and Woods in the 1950's provided the industry with the basic understanding of drilling vertical and inclined holes. Here they defined several forces on the bottom hole assemblies and drill pipes that cause the hole to deviate from vertical. In his paper entitled "Influences of Tension and Compression on Straightness and buckling", API, 1959, Volume 31, Lubinski presents equations, still used today, that conclude that the lower the weight on the bit, the more vertical the hole. Because air drilling requires very little weight on bit, buckling in the BHA and the drill string and torsional affects due to dragging the bit and the drill pipe - all of which create deviations from vertical - are eliminated. Waiver #5- 20 AAC 25.061 No seismic evaluation for shallow gas hazard. Can be justified by answers to questions under Waiver #2. Evergreen hopes that answers found in Waiver 2 and 3 provide sufficient information and surety to grant this waiver. We will further suggest that in shallow gas development, where unconventional reservoirs are the targets, that seismic is not an appropriate exploration technique. This is because unconventional formations - like coal, shales and tight sands - are ubiquitous and cover large areas. The axiom in this exploration realm is: Targets are easy to find but difficult to produce. Thus the preferred method to explore is through the drill bit and the completion rig. Completion and production techniques define the success and failure of these plays, not drilling. Seismic is not valid since we have a high degree of confidence that the formations are there. Oil and gas targets, are the conjugate - difficult to find but easy to produce. Because targets are more difficult to find, seismic is usually run. To have velocity surveys specified in AAC 25.061 make sense in this exploration regime. However, this regulation does not pertain to shallow gas development. Evergreen looks forward to working with the commission on the application of this regulation to shallow gas in particular. Waiver #6- 20AAC 25.066 Not have three methane and H2S detectors present. Meaningless because of rig configuration. No enclosed spaces. (1) Are there any areas where gas could accumulate? APD Robert Smith 3 Pilot 1 =\I=I~GI~==N RESOURCES (ALASKA) CORP. A Sub,~idiltry or EWJrWIPU/1 RO!lDUf\·:f1I;, 1f1r.: ') ') (2) Do you know of any circumstances in Tyonek section in Cook Inlet Basin where H2S naturally occurs? (1) There are no areas where gas can accumulate. Gas produced will be methane with a molecular weight of 16 versus (air is 29). This means that methane is lighter and will disperse in an upwardly direction. (2) There are no known instances where H2S naturally occurs in the Cook Inlet and particularly in the wells drilled in the Pioneer Unit. Furthermore, even if H2S was present in the coalification process (there is no evidence of this), it is impossible for the hydrogen sulfide to replace the methane adsorbed on the coal. Waiver #7- 20AAC 25.527- No API standards All relevant waivers already covered. Spacing Exceptions- 20AAC 25.055 Wells may be within 1500' of property lines. Wells are 1100' apart. Cannot waive any regulation that affects other person's rights. Figures 18, 20, & 21 indicate the need for spacing exceptions because the wells appear to be within 1500' of a property line. Are any of the wells within 1500' of a property/lease line? Are the colored areas on Figures 18, 20, & 21 the only Evergreen leases? Le.: Are the white areas on Figures 18,20, & 21 leased by Evergreen? Do you have a reallandmap? Who are the lessors? Maps shown in the Plan of Operations are surface landowner maps. Shown below are land maps showing mineral ownership for Pilots 1, 2 and 3. Also shown on these maps are the proposed well sites which have already been surveyed. Also included in these maps are 1,500 foot radius circles around each well showing which mineral interest owners are within this area. It should be mentioned here, that the well names presented in the Plan of Operations and in this document will be changed when drilling permits are submitted. Pilot 1 is situated on the Smith (Fee Lease). Here the Smiths own the surface and the minerals. As the figure illustrates all wells are all within 1,500 feet of the mineral property line. Here, the State of Alaska owns the minerals and Evergreen has those minerals leased. Pilots 2 and 3 are located on State of Alaska Minerals. These minerals are all leased by Evergreen. Like Pilot 1, all wells are within 1,500 feet of the mineral property line. Adjacent to this acreage are federal acreage blocks that are prohibited from leasing. Evergreen has met with the Bureau of Land Management and described our plans to drill. Since this is an exploration project where no gas will be sold (only vented), they are not opposed to our program. If economic quantities of gas are required, then a Compensatory Royalty agreement will be signed between Evergreen and the BLM. Close to but not within the 1,500 foot radius, are the Mental Health Trust Lands to the East of Pilot 3 and the University of Alaska Lands to the west. Evergreen Alaska leases APD Robert Smith 3 Pilot 1 =\f=I~GI~==N RESOURCES (ALASKA) CORP, ~ Su/J.~irlimy (), Evnf¡nW/1 A{tfl¡)un.~!rs, I",: ~) ) the Mental Health Trust Lands and is in the process of finalizing the University lands to the west. All wells are 940 to 1,100 feet apart and are designed in a way to test the Tyonek Coal Seams. In a production mode, wells will be spaced much farther apart. The table on the next page summarizes the well placement information. This data is from the surveys done. State of Alaska (Evergreen) State of Alaska (Evergreen) 1,500 "rodlu. 2 1,600 II roclu. State of Alaska (Evergreen) _.~._,,~,~.---~----_._-,---------------,------~------------_._-_.._-~--_....._-,--,---_..'--,---"-- Pilot 1 Land Map .11 '!i¡ / ~: -, r ,J: .' , I 4~ I: , l-C¡ ~ I J..¡ ~~.~~.: ¡iMef'liál ¡ H~lth,r:rust i,(E:y",rgr.en) -----_.._------~-_._-~:..:.:...--~...;...- Permit Name Evergreen Well Placement for Pilots 1, 2 and 3 Pilot 1 Well 1 Pilot 1 Well 2 Pilot 1 Well 3 Pilot 1 Well 4 Pilot 2 Well 1 Pilot 2 Well 2 Pilot 2 Well 3 Pilot 2 Well 4 Pilot 3 Well 1 Pilot 3 Well 2 Pilot 3 Well 3 Pilot 3 Well 4 APD Robert Smith 3 Pilot 1 Well Name DL Smith Gary & Jo Ann Stromberg Robert Smith Cornhusker Cook Lowell Bering Baronoff Tyonek Kenai lIiamna Nanwalek S-T-R See 2 T17N R3W See 2 T17N R3W See 2 T17N R3W See 2 T17N R3W See 30 T18N R1W See 30 T18N R1W See 30 T18N R1W See 30 T18N R1W See 20 T18N R1W See 29 T18N R1W See 29 T18N R1W See 20 T18N R1W Footage (from section) 1255 FNL & 933 FWL 2426 FSL & 141 FEL 3272 FSL & 606 FEL 652 FNL & 293 FEL 967 FSL & 1329 FEL 504 FSL & 422 FEL 1523 FSL & 471 FEL 991 FSL & 888 FEL 815 FSL & 1832 FWL 236 FNL & 2403 FWL 212 FNL& 1205 FWL 301 FSL & 1841 FWL APD Robert Smith 3 Pilot 1 Pilots 2 (South ) and 3 (North).· Land Map F....,.I (Un..........) 5t.t. of AI..k. (Eve,g,"n) of AI..k. ,gr..n >--. --. _n_._________.._._...._......._....',..[,' . ,,;;;'!1 :'"t1r~' .'..... :t~...'... .:J.... : ,I'~~.I ~.., ..~'~ F....,.. ...··.·.·'.1: . 'i :, IIjÜ· J · (Unle.......'.) . ""~t .. ~ ,~ ' ~ .1' ~ JW ~. ~~I a.:~Â 5t.t. of AI...k. (Ev.'QNOn) State of AI..ke (Eve,g_n) 2.9 30 St.te of AI.ok. (Ever",..n) Fedlr81 (t n"'_le) Unl.....II\!, of,AIIIIIut . (Pe~$"'~)' St.", of AI...k. (Everg'een) R____~___________...__ ____ __.._._ _ ______.______ Still. of AI_. (Everg_n) Feclt,.., (Un........Io) 20 St.te of AI..ke (Eve,g_n) 19 '"'" .... ... Ht: ,\ F.dilflll (Un..........) =\I=I~GI~==I'I RESOURCES (ALASKA) CORP. 10\ $¡¡b,Qldillf'j or (;\t¡i!f¡1r«.(1II Ftm1rmrcm,:, I"r:. APD Robert Smith 3 Pilot 1 ) ) Appendix B Proposed Drilling Procedure ) ') =\I=I~GI~==I'I RESOURCES (ALASKA) CORP. A SIilJ,v¡r/i/lfY or EV~f\~rmm r~(lJ1¡,)lIfI~~,',1, Irl~ Proposed Drilling Procedure Evergreen Alaska Corporation Elevation Field Target Proposed TD Robert Smith 3 (Pilot 1) NW/NW of See 2 Twn 17 North Rng 3 West Seward Meridian 3272' FSL & 606 FEL OF SEC Matanuska-Susitna Borough, Alaska USA Kelly: 253 Ground: 250 ft (3 ft AGL) Pioneer Unit Tertiary Tyonek 2990 Well Location Objective Air drill, log and set casing for the subject coal bed methane exploration well. Casing Program Hole Casing Casing Casing Size Size Weight Casing Casing Depth Cement (in) (in) (Ibs/ft) Grade Connection (ft) Interval Conductor 13.875 12.75 49 H20 Pipe Welded 225 to surface Surface 11.00 8.625 24.0 J-55 ST&C 8 Round 400 to surface Production 7.875 5.50 17.0 J-55 ST&C 8 Round 2990 to surface Open Hole Logging Program Log Interval Spontaneous Potential TD to ± 20 ft in Surface Casing Single Induction TD to ± 20 ft in Surface Casing Gamma Ray TD to ± 20 ft in Surface Casing Caliper TD to ± 20 ft in Surface Casing Compensated Density TD to ± 20 ft in Surface Casing The first well drilled in each pilot will have an induction log run on the surface hole to confirm that we have drilled beyond the fresh water zone. A Totco survey will be run in the cased hole to confirm that hammer air drilled holes must be vertical. Mud logging Program Mud log the subject well from surface to TO. Samples every 10 feet. Formation Tops Formation Quarternary Gravel Tertiary T yonek Estimated Tops (ft KB) Surface 200 Generallnformation All information not publicly available is considered Tight Hole and confidential. Spill Prevention Plan and Bear Mitigation measures must be adhered to at all times. APD Robert Smith 3 Pilot 1 ) ') =\I=I~GI~==N RESOURces (ALASKA) CORP. A ,~!¡tJ<¡¡(/iIllY 0/ f.~"'f1r~lm RoMumv,'t, Inc Proposed Drilling Procedure Robert Smith 3 (Pilot 1) Section 2 Twn 17 North Rng 3 West Seward Meridian Matanuska-Susitna Borough, Alaska CONDUCTOR PIPE 1. MIRU Water Well Contractor. 2. Casing drill using air and air hammer bit to +/- 225 feet or at least 25 feet into the Tyonek formation. Casing is 12-3/4 inch OD and 12 inch ID casing. Evergreen personnel will be on location to determine when depth is sufficient. Set casing 8 inches below ground level. Water contractor responsible for sourcing casing. Note: Casing must be straight (not bent) Casing must be vertical 3. POOH with casing drill & LD. 4. Install bell nipple consisting of a 13-3/8" (8 Round, Short Thread and Coupling - standard connection in oil industry) collar on 12.75 OD pipe. Weld nipple on both the inside and outside of casing. Water contractor will be responsible for sourcing bell nipple and welder. 5. Install cementing head (13-3/8"x2" swedge with two 2" valves, 2" nipple and 2" plug. Assembly from bottom up are: Swedge, valve, nipple and valve. 6. Cement (grout) program is as follows: a. Pump 1100/0 of casing volume b. Pump annulus volume of cement plus 500/0 excess c. Displace with one casing volume less 2 barrels (100 gal) of water. This will leave 14.2 feet of cement in casing. d. Close both valves at surface, disconnect grouting unit. Ensure surface assembly hold pressure. If leaving well before If cement does not circulate, then place 10 bbls of cement down annulus from the surface or until the surface annular volume is full of cement. Cement Type I Portland Weight 15.6 ppg Yield 1 . 18 ft31 s k Water Additives 5.2 gal/sk 1 % CaCI 7. Place plug on top valve to secure if valve becomes accidentally opened. 8. Wait on Cement at least 8 hours. 9. Open valves at surface. If cement has not set (water will rush out of 2" valve), then close valve and contact Evergreen immediately. 10. Connect Cement (grouting) head to water pump. Pressure test casing to 200 psi for 10 minutes. If pressure holds 200 psi for 10 minutes, then proceed to the next step. If not then Evergreen Personnel will advise on next step. 11. RIH with 11" bit (tricone or otherwise) on drill rods. Drill out cement in conductor casing and drill ahead an additional 5 feet. Note any gravel that circulates to surface. 12. Circulate hole with air for 15 minutes. Note any evidence that the gravel is sloughing in during drilling or circulating. If sloughing occurs, then notify Evergreen immediately. 13. POOH and LD rods and bit. 14. RDMO Water Well Contractor proceed to next hole. APD Robert Smith 3 Pilot 1 ) ) =V=I~GI~==I'I RESOURCES (ALASKA) CORP. A S4l/).~II·fi{/y 0/ f~fI)1Jr¡~1I1 R(I.I;(',ffl:'1/1i., Iflr. Proposed Drilling Procedure Robert Smith 3 (Pilot 1) Section 2 Twn 17 North Rng 3 West Seward Meridian Matanuska-Susitna Borough, Alaska SURFACE AND PRODUCTION HOLE 1. MIRU Evergreen Rig Number 1. Rig Layout is shown in Figure 1. Crane will be on location to unload Evergreen Portable cementer and Portable batch mixer. A 28 foot trailer with mud additives to kill well will be adjacent to the cement unit. Have kill likes from cement pump to rig's stand pipe ready for kill operation. 2. NU Diverter head (13-3/8" pin on bottom x 4-1/2" DP) and 30 feet 8-5/8",24 ppf blooey line with 125 psi gate valve. 3. RIH with 11" bit on hammer, stablizer on 4-1/2", 17 ppf drill pipe. Air hammer drill surface hole to 350 feet. 4. Condition Hole. 5. POOH & LD drill pipe, stablizer, hammer and bit on trailer. Move pipe trailer 30 feet forward. 6. RIH with 8-5/8", 24 ppf, J-55, ST&C, 8 round, Range II casing (no casing greater than 31.5 feet), with centralizers on 1st, 3rd and 5th joint. Run open-ended. Set casing at ground level. 7. I nstall cement head. 8. RU Cementers. Circulate cement to surface. 9. Shut-valve at surface. Wait on cement 6 hours. 10. Open valve on cementing head. Ensure that the cement has set. RIH with 7- 7/8" drill bit, hammer, stabilizer on 4-1/2" drill pipe. Tag cement. Ensure that there is 10 feet of cement inside casing. If not, then do not drill out, and contact Evergreen for further instructions. 11.lnstall Washington Diverter Head (8-5/8", 8 rd pin, ST&C) and 30 ft blooey line (used to drill out surface casing). 12. Drill a head to 2,990 ft KB. Well will be TD'd above this level if significant hole problems occur. 13. Condition hole with air. Monitor gas flow from well for 5 minutes. If gas is venting from hole at rates too high to safely run casing, then kill well with water. If water is not sufficient, then, weight up with 10 ppg fluid consisting of xanthan gel (125 CaCI sx/100 bbl, 2 sx xanthan gel/100 bbl). 14. POOH & LD bit, hammer, stabilizer, drill pipe. 15. MIRU Patterson Wireline. Run open hole log suite consisting of gamma, compensated neutron, caliper, induction & spontaneous potential. Confirm setting depth of casing. 16. Install Casing Running Diverter on 30 foot blooey line. 17. RIH with 5-1/2" guide shoe, shoe joint, insert and remaining 5-1/2" 17 ppf, ST&C, J-55, 8 round, Range II casing (31.5 max length), with 5 bow centralizers on 1st, 3rd, 10th, 15th and 20th joint. Install 500 psi casing head & run 5-1/2" casing with with 6" of stick-up. 18. Cement production casing from bottom to surface. 19. Clean-up well site. 20. RDMO Cement Unit and proceed to next well 21. RDMO Evergreen Rig #1 and proceed to next well. APD Robert Smith 3 Pilot 1 =\f=I~GI~==I'1 RESOURCES (ALASKA) CORP. A Sllb.~lä,my 0' E\lftrprmm R6!1otlft~!1:>. 1M. Conductor 12-3/4 inch Welded conn. Surface Casing 8-5/8 inch 24 ppf, J-55 ST&C, 8 Rd Range II Production Casing 5-1/2 inch 17 ppf, J-55 ST&C, 8 Rd Range II APD Robert Smith 3 Pilot 1 ) ) PROPOSED Drilling Procedure Robert Smith 3 (Pilot 1) Section 2 Twn 17 North Rng 3 West Seward Meridian Matanuska-Susitna Borough, Alaska Set at 125 feet KB Cemented with sx Set at +/-425 feet Cement circulated to surface with xxx sx cement Set at 2,990 ft KB Cement circulated to surface with xxx sx cement ) ) =\f=I~GI~==I'1 RESOURCES (ALASKA) CORP. A S¡¡b!!/rl,nlY of Ev~rlJrmm H(t~Dur~~trs. Int, PROPOSED Telephone Contact List Robert Smith 3 (Pilot 1) Section 2 Twn 17 North Rng 3 West Seward Meridian Matanuska-Susitna Borough, Alaska Company Name Location Telephone Columbine Mudlogging Spencer Flournoy Henderson, CO Office: 303-289-7764 Fax: 303-289-7764 Trinidad (Trails Inn Motel) Front Desk: 719-846-4425 Patterson Wireline Pat Patterson Weston, Colorado Office: 719-868-2119/3311 Evergreen Resources Alaska John Tanigawa Was ilia, AK Office:907 -357 -8130 P.O. Box 871845 AK Proj Manager Fax: 907-357-8340 Wasilla, AK 99687 Cell:907 -841-0000 Evergreen Resources Inc. Tom Hemler Denver, Colorado Office: 303-298-8100 Suite 1200 Drilling Manager Fax: 303-298-7800 1401 Seventeenth Street Cell:719-680-1378 Denver, Colorado 80202 P.O. Box 660 Jerry Jacobs Denver, Colorado 80201-0660 Enviro Manager Pense Brothers Drilling Larry Pense Glenpool, OK Office:918-322-3095 Mobil 918-625-1668 Fax: 918-322-3829 APD Robert Smith 3 Pilot 1 ;t:: Ll) ,....... ~ Q en ø z ~ :::::> U .-- U w ~ o -- ~ ~ w co .-- ~ o V EVERGREEN RESOURCES ALASKA CORP DRilliNG SITE LAY OUT 500 Bbl Frae Tank 0- 0> 0> 1) ;t:: ;tL{) a.. (J) 1) 15' ())CO> .ç 0 c g;t::¿ U~ x ;t:: o o ã5 x ~ .r. Q o co C\I ã5 x ~ .r. Q o -ºL- Blooey Line 30 ft (8 in) Mudlogger Trailer ~ 0> ¡ c! (]) I E I (]) I U l:J (]) "Eo> :J- o~ ~'ê .;:¿O () :J .= o WEll Light Plant D Core Desorb Trailer D Light Plant Cement Additives Q) C ::::¡ ::i. Mud Supply Trailer Two Compressors Air Booster & Fuel Trailer Doghouse & Parts Trailer Pipe Trailer I 20' Trailer I ~Iatbed I I Tnlck DD Toilet Trash 200 ft ~~ 0~ ~~ ~~ Q) Q) 0 en C ~ß ...-JC \t:w 0"0 Ct)8 c:: =V:RGI~=="I RESOURCES (ALASKA' CORP Wellhead Location ;t:: a a 80 ft o 1 20 ft ;t:: LC ,...... .~ Light Plant D Items Description Mud Supply Trailer - 28 fI enclosed Batch Mixer - Two 75 bbI tanks 500 BBL Frac Tank - Fresh Water Cementer - on 2O'xS'x8.5' ~ Cement Additives - 2O'xS'xS.5' conex Light Plants - Two to Three on site Compressor - Two Ingersoll Rand XHP 900 scfmI350 psi Booster - Hurricane 3,000 scfm at 1,000 psig Fuel Tank - 1,500 gaJlon d~1 tank w/auto shut-off Doghouse Toolshed - 40 ft oontainer wIgen-set Pipe Trailer - has 3,300 fI of 30 ft rods 20' Trailer - holds spider, casing running equipment, BHAs Core Desorbtion Trailer -18=24 ft trailer on site when coring Mudlogging Trailer - 1S ft trailer wI gas dtromat & computer Drill Rig - 1999 Ingersoll Rand RD-20 Truck Mounted Drill Rig Blooey Une - 30 ft length & 8-51S", 24 ppf casing Cuttings Pit - 100ft by 30 ft by 6 ft deep lined Berm - use material from cuttings pit to stop blooey line pits Parking Area - At rear of Lo<:ation Kill Lines . from cementer to drill rig, always rigged up Toilet - Portable Toilet on Trailer Trash· Commercial or Fabtk:ated Bin .~ Sample Photo =\I=I~GI~==N RESOURCES (ALASKA) CORP. ~ i~t-;;"'2r,:J E"f';'r!'t"l R'!5-~·./Cf' '0; Well Control Diagrams Robert Smith ª EVERGREEN RESOURCES ALASKA SURFACE CASING DIVERTER 15 in - ------ ----- -- ---------~-- -------~- ~--- 16 in CONNECTOR is a 13-3/8" PIN ST&C, 8 RD, J-55 ';,' --~\.¡ Y: <.: ~.....,....... .~ 7r:..::. ~ , .-- -- ~.- - ~ .....! . ,2- .. APD Robert Smith 3 Pilot 1 EVERGREEN RESOURCES ALASKA PRODUCTION CASING DIVERTER -------------------- ------------ 15 in WASHINGTON DMRTER RUBBER ELEMENT MODEL 401 O-C (See Below) ---- -- - ---------~-, 16 in To 30 FT BLOOEY LINE 8-5/8",23 PPF, J-55 CASING 8.097" ID with Hammer Union connectc CONNECTOR 8-5/8" PIN ST&C, 8 RD, J-55 ~5·'-------------' ~ ..... ~ ~,"2.'-+- WASHINGTON DlVERTER RUBBER ELEMENT MODEL 401 O-C (See Below) Pressure Rating: 1 ,000 psi Static, 500 psi Dynamic ..-- To 30 FT BLOOEY LINE 8-5/8",23 PPF, J-55 CASING 8.097" ID with Hammer Union connector ~ ....~ =\I=I~GI~==N RESOURCES (ALASKA) CORP. .4 ::-_~o)_'7_:;~, :1 [.'!'';ff'1 P"'-JCt:s ~-.: Tubular and Cement Information Robert Smith 3 (Pilot 1) Section 2 Twn 17 North Rng 3 West Seward Meridian Matanuska-Susitna Borough, Alaska Drill Pipe 11" Hole 11" Hole 8" Hole 8" Holle Size Pipe Weight ID Drift Collapse Burst Tinsile Capacity Capacity Capacity Capacity Annulus Annulus Annulus Annulus (in) Grade (ppf) (in) (in) (psi) (psi) (Kpsi) (bbllft) (ftIbbl) (gal/ft) (ftIgal) (bbl/ft) (ftIbbl) (bbl/ft) (ftIbbl) 4-1/2 0 16.6 3.826 2.812 7,620 7,210 242 0.01422 70.32 0.5972 1.6744 0.0979 10.2175 0.0425 23.5295 ..~ Surface Casing 11" Hole 11" Hole 11" Hole 11" Holle Size Pipe Weight ID Drift Collapse Burst Tinsile Capacity Capacity Capacity Capacity Annulus Annulus Annulus Annulus (in) Grade (ppf) (in) (in) (psi) (psi) (Kpsi) (bbl/ft) (ftIbbl) (gal/ft) (ftIgal) (bbl/ft) (ftIbbl) (gallft) (ftIgal) 8-5/8 K-55 24.0 8.097 7.9272 1370 2950 263 0.0636 15.70 2.6749 0.3738 0.0453 22.0860 1.9017 0.5259 Production Casing 8" Hole 8" Hole 8-5/8 Surf 8-5/8 Surf Size Pipe Weight ID Drift Collapse Burst Tinsile Capacity Capacity Capacity Capacity Annulus Annulus Annulus Annulus (in) Grade (ppf) (in) (in) (psi) (psi) (Kpsi) (bbl/ft) (ftIbbl) (gal/ft) (ftIgal) (bbl/ft) (ftIbbl) (bbl/ft) (bbl/ft) 5-112 J-55 15.5 4.950 4.825 4040 4810 202 0.0238 42.01 0.9997 1.0003 0.0328 30.5012 0.0343 27.94 51/2 J-55 17.0 4.892 4.767 4910 5320 229 0.0232 43.01 0.9764 1.0242 0.0328 30.5012 0.0343 27.94 ~ Cement Information Density Yield Yield Water 11" Hole 8" Hole Name (Ib/gal) (ft3/sk) (bbl/sk) (galfsk) Additives Capacity Capacity Surface Set 15.6 1.21 0.2155 5.3 Versaset ~%, 5% Salt, % Ib/sk Flocele 0.1175 bbllft 0.622 bbllft Pioneer LS 12.2 1.94 0.3455 9.4 2% gel, 2% CaCl, 1 % Thixset A %% Thixset 8, ~ #/sk Flocele 8.5076 ftlbbl 16.0846 ftlbbl APD Robert Smith 3 Pilot 1 AO.FRM Publisher/Original Copies: Department Fiscal, Department, Receiving 02-902 (Rev. 3/94) DIVISION APPROVAL: 4 0 ~ : REQUISITIONED ax: \ (' l {, I . . f ~_-;\ t~ ðV\;~~ I ' \--. . . I . / i v 2 3 73540 02140100 03 NMR DIST LIO FY. ACCT LC PGM CC SY AMOUNT FIN 02910 2 ARD 3 4 PAGE 1 OF TOTAL OF 2 PAGES ALL PAGES$ COMMENTS ...~,.".NQJ,NYJ~IÇ~JJfTR,'P!~,S~T~:-: AOGCC, 333 W. 7th Ave., Suite 100 ~;~~!'!lii(;IJm¡:e:¡m;;.¡frn¡H!k¥~~~fufiii¡;¡~ Anchorage, AK 99501 REF TYPE NUMBER AMOUNT DATE 1 VEN SEE ATTACHED PUBLIC HEARING Account #STOF0330 Advertisement to be published was e-mailed o Classified DOther (Specify) \ D Display Type of Advertisement X Legal THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: (907) 793 -1 ?'?1 DATES ADVERTISEMENT REQUIRED: August 17, 2002 ~ Anchorage Daily News POBox 149001 Anchorage,AJ( 99514 DATE OF A.O. AGENCY CONTACT lody Colombie PHONE . :H;:;·.::::~~::;:~~2"~~~~,~.:I~~~~c.~;.~~~~~~~~;;Y'··· F AOGCC R 333 W 7th Ave, Ste 100 o Anchorage, AJ( 99501 M Au~st 16,2002 PCN 2 c12 ~/?Z J NOTICE TO PUBLISHER 1 ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO.RTIFIED AO 02 31401 0 AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHED COpy OF · ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE 5T ATE OF ALASKA ADVERTISING ORDER J ~ Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Evergreen Resources (Alaska) Corp. Pioneer Unit, Matanuska, Susitna Borough Evergreen Resources (Alaska) Corp. by letter dated August 15, 2002, has requested an exemption from the gas detection equipment requirements of 20 AAC 25.066. The Commission has tentatively set a public hearing on this application for September 19, 2002 at 1 :30 pm at the Alaska Oil and Gas Conservation Commission at 333 .West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on September 3, 2002. If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on September 17, 2002 except that if the Commission decides to hold a public hearing, written comments must be received no later than 9:00 am on September 19,2002. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact lody Colombie at 793-1221 before September 5,2002. CAA~DuU' ~r Cammy Oechsli Taylor Chair Published Date: August 17, 2002 ADN AO# 02314010 iChOrage Daily News Affidavit of Publication ~ toOl Northway Drive, Anchorage, AK 99508 PRICE OrnER OTHER OTHER OTHER OrnER GRAND AD# DATE ro ACCOUNT PER DAY ŒARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 532873 08/17/2002 02314010 STOF0330 $128.78 $128.78 $0.00 $0.00 $0.00 $0.00 $0.00 $128.78 STATE OF ALASKA THIRD JUDICIAL DISTRICT Lorene Solivan, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing ublication is not in excess of the rate charged private individ ~~ '. . .'. N:t::;¡-¡~:?~f:rl~;.::': "',;,",>,: Äla~ká Oiìand :~as,co~~~r~~t,~n~o~nìì~~I~n¡ ',~~~~~~e¿~rte~x~~~~~~~e,f~ml~~:J~~g~~~.~;:·..,·::, ,:........;:,:'...".- Evergreen .Resou}ce~,(Ältlskd)·'Cør'p:· bY:'efh~r dàted. August 15, 2002ì:hasl.reqÛ~~'te~:àn eXl¡lml?tlpn ~~~,j,~~s:'o~~;detec~i~h. eCll! i~;W'~\~~:r~:qU I ~~~~~t:~<~f .. . .' ," <;:.I~.'.! :".. :1 :'" :'~',(.: .~:,.',_'~/<':'::.:'.:,I·r:': :":-;',:-::1:-: '-:';'.'",: ..' '.'. ..''''.", ""':':--',"'<, :"',-. The COrl1Âiissic;ln;'ho~. tentQtlVe.1Y's~t a' PUbliche'CII~~ 1 Ingon thi.s .qpp,lIcàtion:fo'rS~PtembeJ' 19,2002-ot 1 : 30. pm· øtthé:AIÇ1ska 0IJCI!1d~asCon~er,y.atlC?n Comm.ission ,Qr33~West7~tI:!~y~rll.le, Sultl¡l'\100;AI1- chòrOgè, Þ\loSkq:9950J;'A.pet!iOn. may reql!E!~t that thetentativelyscheai:Jled 'hèo'rlng be held' byflllng a wr ¡.He nreq ùest,iWIt:ti'Jbè:'Com miss 10n"l'Io 'later .~~~,~:4:~0':,~"1:ÞI1,::S~:~!~f:DI?~I'.3~'~~~r. .' .. ' ;' ',",,:~' "¡ :.';"" Üarequest.·for'a hearingls'noUlmely, fléd,fhe ; Commrssión ,wi'll 'consider the Iss6ance.of;an'þrder ' , -lIiIithout·ahearlng~To:leorn If the Commissl,on will . hold the PUbl~Ch~ann~¡PleaSeCall 79~-·122l;· ,'~';,:;il:~ In addition,:~¡pÙ~on:mov .sUbmlt:writtøf!~iC~M-, ments regarding this, application to the Alas~CI:'O,i! and Gas Conservation Commisslbnat 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Writ- ten comments,must be received no later than 4:30 pm on September' 17, 2002 'except that if the Com- mission decides to hOld,a ,publichearing¡·wrltten comments must be rece1ved no later than 9:00lam on September 19, 2002. . If YOU are a person with a disåbllitv,whCl I11bYl1ee\;! aspecia I mod ificqtion in orde~toComrl1eflt;'orto 'attend the public ,hearing, pleQsecontact.J.ody:Ço- 10111~ieat 793-1221 before Septel11ber5ì2oo2~'" ' ¿~mm'loèc¡'~1i TaYlor Chair . Publish: August 1-7,2002 ':'.',,', Subscribed and ~; J;e this date: ., ','.' ,~. ..' :. .' " \ AO# 02314Q10 Notary Public in and for the State of Alaska. :~:;;;::;:la~~J ~'47Ák,!l~ \\\\III'I?rV , ~\~~~\:\[!:~~~~ ~4f:~OTAR~~~ ",. --. ..... "- . . ...--. - . PuB\.\C . - ~.'.~ --~.:~~ - . A~ . "l....... ~~:~~Of ..'~~~ ~;5S.' ...~ ,"\ /././.IJ} )~\\\\" STATE OF ALASKA ADVERTISING ORDER INVOI~ST BE 1~~r1~~ S!21~~~~~'~~ER N~RTIFIEO AOA~VOE2RT3IS1IN4G001RDOER NO. AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COpy OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE : ,", ,'~~E:,'~9:1.Z~~;,f,~:'~~~~:9~\,~P'~~~~t,~? F AOGCC R 333 West 7th Avenue, Suite 100 o ~chorage,AJ( 99501 M AGENCY CONTACT DATE OF A.O. T o ~chorage Daily News POBox 149001 ~chorage,AJ( 99514 lody Colombie ,Al\PUst 16, ?OO? PHONE pcN""' (907) 793 -1 ?,) 1 DATES ADVERTISEMENT REQUIRED: August 17, 2002 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account #STOF0330 United states of America AFFIDAVIT OF PUBLICATION REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2002, and thereafter for _ consecutive days, the last publication appearing on the _ day of ,2002, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2002, Notary public for state of My commission expires 02-901 {Rev. 3/94) Page 2 AO.FRM PUBLISHER John Katz State of Alaska Alaska Governor's Office 444 North Capitol St., NW, Ste 336 Washington, DC 20001 Alfred James 107 North Market Street, Ste 1000 Wichita, KS 67202-1822 Conoco Inc. PO Box 1267 Ponca City, OK 74602-1267 Gregg Nady Shell E&P Company Onshore Exploration & Development PO Box 576 Houston, TX 77001-0576 G. Scott Pfoff Aurora Gas, LLC 10333 Richmond Ave, Ste 710 Houston, TX 77042 William Holton, Jr. Marathon Oil Company Law Department 5555 San Fecipe St. Houston, TX 77056-2799 Chevron USA Alaska Division PO Box 1635 Houston, TX 77251 Chevron Chemical Company Library PO Box 2100 Houston, TX 77252-9987 James White Intrepid Prod. Co./Alaskan Crude 4614 Bohill SanAntonio, TX 78217 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 ~ Daniel Donkel 2121 North Bayshore Drive Ste 1219 Miami, FL 33137 Christine Hansen Interstate Oil & Gas Compact Comm Excutive Director PO Box 53127 Oklahoma City, OK 73152 Mir Yousufuddin US Department of Energy Energy Information Administration 1999 Bryan St., Ste 1110 Dallas, TX 75201-6801 Michael Nelson Purvin Gertz, Inc. Library 600 Travis, Ste 2150 Houston, TX 77002 G. Havran Gaffney, Cline & Associations Library 1360 Post Oak Blvd., Ste 2500 Houston, TX 77056 T.E. Alford ExxonMobilExploration Company PO Box 4778 Houston, TX 77210-4778 W. Allen Huckabay Phillips Petroleum Company Exploration Department PO Box 1967 Houston, TX 77251 Shawn Sutherland Unocal Revenue Accounting 14141 Southwest Freeway SugarLand,TX 77478 Doug Schultze XTO Energy Inc. 3000 North Garfield, Ste 175 Midland, TX 79705 Scott Webb Ocean Energy Resources, Inc. 1670 Broadway, Ste 2800 Denver, CO 80202-4826 ., SO Dept of Env & Natural Resources Oil and Gas Program 2050 West Main, Ste #1 Rapid City, SO 57702 Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Mary Jones XTO Energy, Inc. Cartography 810 Houston St., Ste 2000 Ft. Worth, TX 76102-6298 Paul Walker Chevron 1301 McKinney Rm 1750 Houston, TX 77010 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Texico Exploration & Production PO Box 36366 Houston,TX 77236 Donna Williams World Oil Statistics Editor PO Box 2608 Houston, TX 77252 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Jerry Hodgden Hodgden Oil Company 408 18th St. Golden, CO 80401-2433 John Levorsen 200 North 3rd St., #1202 Boise,lD 83702 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Duane Vaagen Fairweather 715 L St., Ste 7 Anchorage, AK 99501 Steve E. Mulder Dorsey & Whitney 1031 West 4th Ave., Ste 600 Anchorage, AK 99501 Robert Mintz State of Alaska Department of Law 1031 West 4th Ave., Ste 200 Anchorage, AK 99501 Tim Ryherd State of Alaska Department of Natural Resources 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 John Harris NI Energy Development Tubular 3301 CSt., Ste 208 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Greg Noble Bureau of Land Management Energy and Minerals 6881 Abbott Loop Rd Anchorage, AK 99507 ') . Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Thor Cutler OW-137 US EPA egion 10 1200 Sixth Ave. Seattle, WA 98101 Julie Houle State of Alaskan DNR Div of Oil & Gas, Resource Eva!. 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Richard Mount State of Alaska Department of Revenue 500 West 7th Ave., Ste 500 Anchorage, AK 99501 Susan Hill State of Alaska, ADEC EH 555 Cordova St. Anchorage, AK 99501 Jim Arlington Forest Oil 310 K St., Ste 700 Anchorage, AK 99501 Mark Dalton HDR Alaska 2525 CSt., Ste 305 Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Judy Brady Alaska Oil & Gas Associates 121 West Fireweed Lane, Ste 207 Anchorage, AK 99503-2035 Jeff Walker US Minerals Management Service Regional Supervisor 949 East 36th Ave., Ste 308 Anchorage, AK 99508 ... John F. Bergquist Babson and Sheppard PO Box 8279 Long Beach, CA 90808-0279 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Williams VanDyke State of Alaska Department of Natural Resources 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Cammy Taylor 1333 West 11th Ave. Anchorage, AK 99501 Ed Jones Aurora Gas, LLC Vice President 1029 West 3rd Ave., Ste 220 Anchorage, AK 99501 Trustees for Alaska 1026 West 4th Ave., Ste 201 Anchorage, AK 99501-1980 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Mark Hanley Anadarko 3201 CSt, Ste 603 Anchorage, AK 99503 Arlen Ehm 2420 Foxhall Dr. Anchorage, AK 99504-3342 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Rose Ragsdale Rose Ragsdale & Associates 3320 E. 41st Ave Anchorage; AK 99508 Chuck O'Donnell Veco Alaska,lnc. 949 East 36th Ave., Ste 500 Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Perry Markley Alyeska Pipeline Service Company Oil Movements Department 1835 So. Bragaw - MS 575 Anchorage, AK 99515 Jeanne Dickey BP Exploration (Alaska), Inc. Legal Department PO Box 196612 Anchorage, AK 99518 J. Brock Riddle Marathon Oil Company Land Department PO Box 196168 Anchorage, AK 99519-6168 BP Exploration (Alaska), Inc. Land Manager PO Box 196612 Anchorage, AK 99519-6612 Shannon Donnelly Phillips Alaska, Inc. H EST -Enviromental PO Box 66 Kenai, AK 99611 Penny Vadla Box 467 Ninilchik, AK 99669 John Tanigawa Evergreen Well Service Company PO Box 871845 Wasilla, AK 99687 ) . Jim Scherr US Minerals Management Service Resource Evaluation 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Richard Prentki US Minerals Management Service 949 East 36th Ave., 3rd Floor Anchorage, AK 99508 Jim Ruud Phillips Alaska, Inc. Land Department PO Box 100360 Anchorage, AK 99510 Jordan Jacobsen Alyeska Pipeline Service Company Law Department 1835 So. Bragaw Anchorage, AK 99515 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Kevin Tabler Unocal PO Box 196247 Anchorage, AK 99519-6247 Dudley Platt D.A. Platt & Associates 9852 Little Diomede Cr. Eagle River, AK 99577 Kenai Peninsula Borough Economic Development Distr PO Box 3029 Kenai, AK 99611 Claire Caldes US Fish & Wildlife Service Kenai Refuge PO Box 2139 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 .. Thomas R. Marshall, Jr. 1569 Birchwood Street Anchorage, AK 99508 Paul L. Craig Trading Bay Energy Corp 5432 East Northern Lights, Ste 610 Anchorage, AK 99508 Kristen Nelson IHS Energy PO Box 102278 Anchorage, AK 99510-2278 Robert Britch, PE Northern Consulting Group 2454 Telequana Dr. Anchorage, AK 99517 Tesoro Alaska Company PO Box 196272 Anchorage, AK 99519 Sue Miller BP Exploration (Alaska), Inc. PO Box 196612 Anchorage, AK 99519-6612 Bob Shavelson Cook Inlet Keeper PO Box 3269 Homer, AK 99603 James Gibbs PO Box 1597 Soldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 131 Fairbanks, AK 99707 Harry Bader State of Alaska Department of Natural Resources 3700 Airport Way Fairbanks, AK 99709 .. North Slope Borough PO Box 69 Barrow, AK 99723 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Senator Loren Leman State Capitol Rm 113 Juneau, AK 99801-1182 ... Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 J =\(=I~GI~==I'I ~ RESOURCES (ALASKA) CORP. A Subsidiary of Evergreen Resources. Inc. REceiVED August 15, 2002 AUG 1 5 2002 Alaska 0;1 & Gas Cons. Commission AnctJorage Mr. Dan T. Seamount Commissioner Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99500 RE: Waiver for exception from 20AAC 25.066 Gas Detection Dear Commissioner Seamoun~, Evergreen Resources is the current operator for the Pioneer Unit, Matanuska Susitna Borough and plans to drill eight wells to test the Tyonek Coals in September 2002. In this letter, Evergreen Resources Alaska requests an exemption from 20 MC 25.066, Gas Detection for the upcoming drilling program. 20 MC25.066 sets forth the minimum gas detection equipment for drilling and work over rigs. This portion of the regulations are included at the end of this letter. Evergreen requests a waiver from this regulation since (1) there is no H2S gas from the shallow gas formations in the Pioneer Unit and (2) due the air drilling system that we employ. To date, 12 wells have been drilled on or directly adjacent to the Pioneer Unit. None of these wells reported H2S. We therefore believe there is sufficient evidence that no H2S exists. Secondly, due to the truck mounted drilling system that Evergreen employs, sensors cannot be placed in the cellar or substructure and next to the shale shaker. Methane gas, the primary constituent of natural gas from coal bed methane, will evolve from the air drilling process. However, these gasses are blown well away from the drill rig, out the 30 foot blooey line and are prevented from flowing up the drill pipe due to check valves (floats). We are confident we can safely drill, complete and produce coal bed methane wells in Alaska using our well-proven systems and methods discussed in earlier correspondences. This year alone, we have drilled over 40 miles of coal bed methane wells in the US, UK and Ireland with no accidents. We hope we can employ the same types of drilling measures, necessary for successful coal bed methane development, in Alaska. Thank you for considering Evergreen's request. Please contact me if you have questions. My telephone number is 907-841-0000 and my e-mail is JohnT@EvergreenGas.com Sincerely, John J Tanigawa P.O. Box 871834 Wasilla. Alaska 99687 Tel: 907-357-8130 Fax: 9ú7-357-8340 J =\(=llGI~==I'1 J \ , RESOURCES (ALASKA) CORP. A Subsidiary of Evergreen Resources. Inc. 20 AAC 25.066 GAS DETECTION. (a) Drilling and workover rigs must meet the following minimum requirements for methane and hydrogen sulfide gas detection: (1) the methane detection system must have a minimum of three sensing points; one sensing point must be under the substructure near the cellar, one must be over the shale shaker, and one must be above the drill rig floor near the driller's station or above the drilling platform; if the mud pits are remote from the shale shaker and enclosed, a fourth sensor must be located over the mud pits; (2) methane sensors must be placed to detect a "lighterMthan-air'· gas; (3) the hydrogen sulfide detection system must have a minimum of three sensing points; one sensing point must be under the substructure near the cellar, one must be near the shale shaker, and one must be above the drill fig floor near the driller·s station or above the drilling platform; the commission will require additional sensors as the commission considers necessary for safety, such as at the entrance to living quarters if they are adjacent to the drill rig, or over the mud pits if they are remote from the shaker and enclosed; (4) hydrogen sulfide sensors must be placed to detect a "heavier-than-air'· gas; (5) sensors must be automatic, acting independently and in parallel, and with one- minute minimum sampling intervals; (6) each detection system must include separate and distinct visual and audible alarms; the visual alarm must signal the low level gas alarm and the audible alarm the high level gas alarm; an audible alarm may have an "acknowledge·' button; (7) the methane low level gas alarm must be set at not over 20 percent LEL; the high level alarm must be set at not over 40 percent LEL; (8) the hydrogen sulfide low level gas alarm must be set at 10 ppm; the high level alarm must be set at not over 20 ppm; (9) each alarm must be automatic and must be visible and audible from the driller's or operator's station; the hydrogen sulfide alarm must be audible throughout the drilling location, including the camp buildings. (b) A gas detection system that continuously performs self-checking or diagnostics must be function-tested when a BOP stack is initially installed after a drill rig is set up, when a commission-witnessed BOP test occurs, and no less frequently than once every six months. Other gas detection systems must be calibrated and tested when· a BOP stack is initially installed after a drill rig is set up, when a commission-witnessed BOP test occurs, and no less frequently than once every 30 days. The operator shall maintain at the drill rig an accessible record of gas detection system tests and calibrations. (c) A failure in a gas detection system must be reported to the commission within 24 hours after the failure. The commission will, in its discretion, require well operations to be discontinued if a gas detection system fails. History - Eft. 11 n /99, Register 152 Authority - AS 31.05.030 P.O. Box 871834 Wasilla. Alaska 99587 Tel: 907-357-8130 Fax: 907-357.æ40 ""',' EM~~fgrE1~n:'::":QØ~iati'n~:'qorp , 14Q::1"':?,?t~:i,$tr~ø,t;':'$uite 12Q(J Denvêt,":~'cb 80202 \.;:',":'. ":,,,"r~\: :<',""1, " ';", , " '\', "....\ . '" -u.~..~ "r' " "~".'.'''.~~",.,,,,,..a.'' .,"I~~~~'I~t-~H'Il'JIf.1"."'''''''a'~;j)'j''!'':.. ':Y~i;~lí~~~i::~:e~::t~~:u~: '). . .' '/ri>" , ':,'.",,:, '" "", ;/':f¡bernia::NÇltlon~l,a~nk ' """"" ',', ',',' "" '.,\:'1:'/"."\'\""'" .", "',',,",, , "I', ,":\:':;:,::!\\~' :\1'."". , "'" ~,:"",:::"',:,,:': ,'I',:,,' Cheék:,'N6 ' ;"'1"\'."\'\""" 1,.',1.1,1,,',.'" . I",., " ' .'" " C'hêCk'Òa'tå'" . ,,":' Check Amount>' ,", "',' ,...,"\',", ""\(::'\'\:':~':>':'::':;:\"'::,''';''',, , ,:.:,,'.'" , ',:,',,'i'\,".'..' ':',':PAY', "i"":: ',' bri~\\8,undt:ed:/!JþlJars and l-ero cëQt~", i,l,\i,;,',"':i' ';,;,;':',' ,,' ,;',: """ "" "'" ' . ' . 'I' ,,} :,'.: " 'I:: " ' ,: :,':,:, ','::, '\, "" :::: ,,',' ,'~': ~. :':. .' ,,' ", , ."',', ,":"', TO'/":"'}.'::"':"',Alå:$ka, c?lland,"'~é3,$"""":' TH E '" "":\::\,i;,.oonserva,tion'Cd'm:miss'ïon 333 West 7th Avenue #100 )',ª:~,ê':~"", Anchoragé" AK~'9501 ,:::ç;)F""::'" ': '"", ::\<",.", ',', '1 \.',...,",',¡"" "",,",,·:,,"1'. I',,' 'poa3Qg~'ªq9,: " 05/30/2Qq~::¡, 1r*****,~'~~***~\~,PQ",'9Q:,\,i,:" "'.":,',:,;' " , ",\' , '. ",' """'" "\\;i';"",',,:,> ""':' ' V.old After 90 DaY$", .' :':':':"',::,\ ::',:',,~~:\:::,: , ,'''' ", , , " \ ~~~.,,~----'~-~-~~_!ÞJ~~.~~~:Ö~J~~_~}2_~_~~?t~!~~~~~~_~:f!~ ~~~ ."", ",", ~N?¿?J4 " ',' , :',1",. ,"',':,',' ,II,"" , ' '··"'::,,:,i':;, "::'",\1',":\',',';''.,:':': .,IIL\"...\"",:: " I,",' [ð",': ,_..___.,,_ __....,_____M», _ LEASE DETACH AT PERFORATION ABOVE^ :V:I~Gll::N EVERGREEN RESOURCES, INC. Evergreen Opera tin a Corp 1401 17th Street. Suite 120'ð Denver CO 80202 ^PLEASE DETACH AT PERFORATION ABOVE^ Invoice # _: I· ~.. 04/28/2002 112 Month Drilling Permit Fee I I I I i i ! Check Number I~~i I 100.00 0.00 I I I i )42802 JT-08 ----~--" ""--- ."',. --. 09195 , ~ Vendor -- - - -- Check Date: 05/30/2002 Check Amount ~ 100,00 ') ) TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPRIATE LETTERlP ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME ,kS~/ LSmr/;{ :3 2-02- -/fc CHECK WHAT APPLIES Rev: 07/10/02 C\jody\templates PTD# ADD-ONS (OPTIONS) MULTI LATERAL (If API number last two (2) digits are between 60-69) PILOT (PH) "CLUE" The permit is for a new wellbore segment of existing well Permit No, API No. Production should continue to be reported as a function· of the original API number stated above. HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both name (name on permit plus PH) and API number (50 70/80) from records, data and logs acquired for well (name on permit). SPACING EX7 DRY DITCH SAMPLE The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation o.r.der approving a spacing exception. T-~ ~ ~ (Company Name) assumes the liabili~ of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. 1;' ',:..' ....,~ ....'::',~..::.."',"':" .. ': W~LL _p.J:~lr'çHECK1J_~1 FIELD & POOL ADMINISTRATION APPR SFD DATE 9/6/2002 (For Service Well Only) (For Service Well Only) ENGINEERING APPR WGA DATE 9/3/2002 GEOLOGY (For Service Well Only) APPR SFD COMPANY 610500 EVERGREEN Robert L Smith 3 PROGRAM Exploritory (EXP) -.!.... Development (DEV) GEOL AREA 820 UNIT No. Redril ~ervice (SER) _Well bore seg 51550 ON/OFF SHORE On Annular disposal para req WELL NAME nitial ClasslType EXP /1-GAS 1. Permit fee attached ............................................................................................. 2. Lease number appropriate... ................................................................................. 3. Unique well name and number ............................................................................. 4. Well located in a defined pool................................................................................ 5. Well located proper distance from drilling unit boundary ........................ ... ......... ......... 6. Well located proper distance from other wells ........................................................... 7. Sufficient acreage available in drilling unit................................................................ 8. If deviated, is wellbore plat included ........................................................................ 9. Operator only affected party......... ... ......... .......... ........ ..... .... ...... ... ......... ... ...... ... .... 10. Operator has appropriate bond in force .............................. ... ................................, 11. Permit can be issued without conservation order..................................................... 12. Permit can be issued without administrative approval............................................... 13 Can permit be approved before 15-day wait.............................. ............................. 14 Well located within area and strata authorized by Injection Order # 15 All wells witthin 1/4 mile area of review identified ..................................................... 16 ACMP Finding of Consistency has been issued for this projec .................................... 17 Conductor string provided ................................................................................... 18 Surface casing protects all known USDWs ............................................................. 19 CMT vol adequate to circulate on conductor & surf csg ............................................. 20 CMT vol adequate to tie-in long string to surf csg ..................................................... 21 CMT will cover all known productive horizons ......................................................... 22 Casing designs adequate for C, T, B & permafrost................................................... 23 Adequate tankage or reserve pit...... ... ... ... ... ...... ...... ............ ......... ... ... ... ... ... ........, 24 If a re-drill, has a 10-403 for abandonment been approved........................................ 25 Adequate wellbore separation proposed................................................................ 26 If diverter required, does it meet regulations........................................................... 27 Drilling fluid program schematic & equip list adequate............ ............ ...... ............ .... 28 BOPEs, do they meet regulation ......... ... ...... ... ..................... ......... ... ... ........... ...... 29 BOPE press rating appropriate; test to .................... psig ........................... 30 Choke manifold complies w/API RP-53 (May 84) ..................................................... 31 Work will occur without operation shutdown ........................................................... 32 Is presence of H2S gas probable.......................................................................... 33 Mechanical condition of wells within AOR verified.................................................... 34 Permit can be issued w/o hydrogen sulfide measures............................................... 35 Data presented on potential overpressure zones........................... ............ ......... ... .. DATE 36 Seismic analysis of shallow gas zones............ ... ......... ... ......... . . . ...........................' 37 Seabed condition survey (if off-shore) ................................................................... 9/6/2002 38 Contact name/phone for weekly progress reports [exploratory only] .......................... GEOLOGY: ENGINERING: RES. ENGINERING: COMMISSION: RPC: TEM: JD~ SFD)J> WGA: \JGÆ- MJW COT: {$r cr/ep/o'?- DTS Ó~~¿ Yes # 0083004900 No FEE LEASE surrounded by ADL 374121 based on DNR Mineral Estate map. Yes No No No No Yes Yes No Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Robert L Smith 3 will be located in the Pioneer unit in an undefined pool within the Tyonek Fm. SPACING EXCEPTION REQUIRED «1500' from property line) 8-28-02: Phone John T. 9-6-02: John will provide application. SPACING EXCEPTION REQUIRED «3000' from Corn husker 4 gas well). SPACING EXCEPTION REQUIRED Second gas well in Sec. 2, T17N, R3W, SM. Not Applicable: vertical well SPACING EXCEPTION REQUIRED; text for public notice drafted 8-29-02. Waiting on application. SFD Not Applicable Not Applicable 8-29-02: DNR rules that the project is consistent with the Alaska Coastal Management Program and the Local District Plan. SFD 12-1/4" @ 125'. 8-28-02: No information. 9-6-02: Offset well data and Evergreen's C-Plan Exemption request suggests that casing set at the proposed 400' Surface Casing depth should be adequate to protect glacial till layer, which is the drinking water aquifer for this area. Nearest drinking water wells are about 0.3 miles away, and they range in depth from 85 to 129 feet deep. Surface hole will be logged in prior well Corn husker 4 before setting casing and cementing it to surface to ensure that drinking water is protected. SFD Not Applicable Air drilled. Not Applicable Not Applicable Not Applicable ./ \ No Not Applicable No 8-28-02: No information provided. 9-6-02: Pioneer 15DD (5 miles SE) reportedly drilled interval with 8.4 ppg. Pioneer 14CC drilled Not Applicable interval with 9.2 ppg mud. Pittman 1 (4 miles E) tested 120 bId gassy water with SIP of 640 psi at -1100', and Not Applicable this inteval was drilled with 9.5 ppg mud. BL T 1 (3 miles SW) drilled this interval with 8.8 ppg mud. Yes John Tanigawa: 907-841-0000 Evergreen will have materials and means to create 10.5 ppg mud onsite. Comments/I nstructions 8-28-02: Spacing exception required to produce the well, Inclination only survey required as this well is > 500' from property line. SFD