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Home My WebLink About202-184 e e MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg ~e. ~ 5/l6t{D4-' P. I. Supervisor 11 DATE: May 8,2005 ..~.~" 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 PTO: 202-177 Baranoff04 PTO: 202-178 Cook 01 PTO: 202180 Lowell 02 PTO: 202-179 1702-14CC PTO: 199-065 1702-150A WOW PTO 199-064 1702-1500 PTO: 199-066 Cornhusker 04 PTO: 202-181 i.)t;J\.pVNEf2 JUN 1 ~l RL.. Smith 03 PTO: 202-182 vØL Smith 01 PTO: 202-184! Stromberg 02 PTO: 202-183 BL T 01 PTO: 199-068 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 Well location North I of Houston . . \...... ·""·····r.···.············"··'··, .., _.' - 1- :....,. ~,:. .. ~i-1 MICROFILMED 07/25/06 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE F:\LaserFicbe\CvrPgs _ Inserts\Microfilm _ MaIker.doc _ STATE OF ALASKA . RECEIVED ALASKA _ AND GAS CONSERVATION COMMISSI ... . . WELL COMPLETION OR RECOMPLETION REPORT A~Ef l!éj@05 -. 1 a. Well Status: OilD GasD Plugged 0 Abandoned 0 ,/ Suspended D WAGD 1b. ~Ullsijil & G, COIìS . 20AAC 25.105 20AAC 25.110 Development D Anfrh~xprohR~ p GINJD WINJD WDSPL D No. of Completions Other Service D S ra&~ic Test D 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Pioneer Natural Resources Alaska, Inc. Aband.: Aug 18, 2005 .¡¡i_~ffM .r( 3. Address: 6. Date Spudded: 13. API Number: 700 G Street, Suite 600 Anchorage, AK 99501 October 21, 2002 50-009-20026-00 ,/ 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 3293' FNL, 293' FWL, Sec 1, T17N, R3W, SM November 20, 2002 DL Smith #1 ,/ Top of Productive Horizon: 8. KB Elevation (ft): 15. Field/Pool(s): Same 278 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- 1724538 y- 2783102 (NAD 83) Zone- 4 2510 MD, TVD 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 D No 0 19. Water Depth, if Offshore: 20. Thickness of Permafrost: NA feet MSL NA 21. Logs Run: None 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 320 Surface 320 16" 40 sx class A None 8.625 23 J-55 Surface 1038 Surface 1038 11 " 95 bbls class A None 5.5 17 J-55 Surface 2497 Surface 2497 7-7/8" 120 bbls class A None 23. Perforations open to Production (MD + TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) None . ._.....~...,¡...,...~...----~.... - . ~._,,- 2.875 2241 NA 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED >1708' Squeezed 1 bbl Type I cement into perfs ,- SCßit.¡~W",1F[ ó', ;:i 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 nR\G\NJ\l /1/1 JJ IJ f)/ý) / I r Form 10-407 Revised 12/2003 CONTINUED ON REVERSE \J'V' ! '( VVt'V 10 II~ l " r¡ ~l¥' \O<S" \0\19\ (;5'- ~ 28. NAME GEOLOGIC MARKERS MD 29. ORMATION TESTS TVD Include and briefly sum e test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". 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: Printed Name: Joe Polva Title: Sr. Staff Drilling Engineer Signature: 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 I njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 e e Pioneer Natural Resources Alaska, Inc. Pioneer Unit DL Smith #1 Plug and Abandonment Operations Summary July 26, 2005 Check for pressure on well, bleed off 100 psi gas from casing and tubing in 5 minutes. Fill well with water and inject 6 bbl fluid into perforations, 600 - 700 psi at 1 bpm. Shut in well at 550 psi and monitor, pressure dropped to 120 psi after 10 minutes, 30 psi after 30 minutes. July 27, 2005 Safety meeting first off. Check for pressure on well, 30 psi on casing. Test pumping equipment after service repairs, insufficient intake on triplex due to cement chips under valve. Clean out cement chips under valve. Retest, triplex OK. Batched mixed 56 bbls, 15 ppg, Type I cement. Pumped cement down tubing with 750 psi at 3 bbl/min with annulus shut in until tubing volume pumped. Open tubing/casing annulus valve and receive cement returns at surface after 55 bbl cement pumped, shut in tubing/casing annulus and squeezed away 1 additional bbl cement into perforations. Shut in well. Clean up equipment. Move to Cornhusker #4. July 28, 2005 Inspect cement level in tubing at 31 feet. Run in tubing with o/,¡" pipe to 31 feet below grade and perform top job in tubing. Casing/tubing annulus will likely need top job after well cutoff. July 30, 2005 Check well, well dead. Dug out well. Cut off wellhead at 5.5 feet below pad level. Surface water at 6.5 feet in excavation. Cement to surface in 2-7/8 inch tubing and 5.5 inch casing. Top job needed in 8-5/8 x 5.5 inch annulus, depth TBD. July 31, 2005 Set top job in 8-5/8 x 5.5 inch annulus 25 feet below grade to surface. August 9, 2005 Matt Rader (ADNR) and Chuck Sheve (AOGCC) inspected Pilot 1 and 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 - Pioneer Natural Resources Alaska, Inc. DL Smith #1 Plug and Abandonment Photos Photo 1: Cementing equipment rigged up on Photo 2: DL Smith #1 well cut off and cement to surface (cement within 1 foot oftop of 8-5/8 x 5.5 inch annulus). - 2- Photo 3: Installing the marker plate on the Photo 4: DL Smith #1 with marker plate installed. -3- PBTD 2487 e e Pioneer Unit DL Smith #1 Final Well Schematic Well DL Smith #1 API 50-009-20026-00 Qtr/Qtr Sec 1 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 1038 Field Pioneer Unit Country USA Casing 5-1/2 17 J-55 LT&C 2497 GL/KB 274/278 Tubing 2-7/8 6.4 J·55 8rd 2241 No. Depth Length OD ID Description 1 2497 2 4.24 N/A Alpha Tools Midget 1110,000 psi CIBP 2 2260 11.51 2.88 N/A 40N045 pump wI torquestopper No-turn. 3 2212 8 N/A N/A Perfs from 2212 - 2220,4 spf and 23 gram 4 2125 7 N/A N/A Perfs from 2125 - 2132, 4 spf and 23 gram 5 1974 4 N/A N/A Perfs from 1974 - 1978, 4 spf and 23 gram 6 1953 4 N/A N/A Perfs from 1953 - 1957, 4 spf and 23 gram 7 1858 4 N/A N/A Perfs from 1858 - 1862, 4 spf and 23 gram 8 1840 4 N/A N/A Perfs from 1840 - 1844, 4 spf and 23 gram 9 1756 4 N/A N/A Perfs from 1756 - 1760, 4 spf and 23 gram 10 1708 4 N/A N/A Perfs from 1708 - 1712,4 spf and 23 gram 11 Surface Well cutoff 5.5 feet below ground level. 11 Modified by JRM 9/13/05 e e MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg,V)· 0/· _./<1'> P. I. Supervisor '\t?-t¡1 (Ib U DATE: August 9, 2005 FROM: Chuck Scheve, Petroleum Inspector SUBJECT: Surface Abandonment Pioneer Unit D L Smith #1 PTD# 202..,,184# Stromberg #2 PTD# 202~ 183 R L Smith #3 PTD# 202182 Cornhusker #4 PTD# 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. ,.~. -....-..'''',,'.-- .._,~--==,._-".=--",-,:....--;,,-;.n,_.-.,,,.-".~,,,.~_,,",,~--.- SUMMARY: I inspected the casing cut off depth, and the P&A marker plates on the D L Smith 1, Gary Joann Stromberg 2, Robert L Smith 3 and Cornhusker 4 wells and found all to be in order. Attachments: D L Smith 1.JPG Stromberg 2.JPG R L Smith 3 .JPG Corn husker 4 .JPG ;?i{,!\NNB ' C. "I 'lfin" (: .i~ t.V ~,~ e e Pioneer Unit Surface ,Abandonments Photos by AOGCC Inspector Chuck Scheve August 9, 2005 ! ¡ ¡ ~ '., . '. ." . .. ~ "..;.; c, ....,...... Î" ~1I!i4 ,{~~~; Cornhusker #4 Casing Cut DL Smith # 1 Casing Cut 2 e e ~ 1\:, ¥rt', ;--a . ~,;+;.tjt ,t, i.~'¡" r 9·' 'If.:; í."í "':~; RL Smith #3 Casing Cut Stromberg #2 Casing Cut 3 Permit to Drill 2021840 3J~\) ~~~~ç- DATA SUBMITTAL COMPLIANCE REPORT 7/6/2005 Well Name/No. D L SMITH 1 MD 2510// TVD 2510 / Completion Date 6/8/2003 /~ 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 Type Med/Frmt Number ! Rpt V' I~ I~- ! I)-~-' ¡~ I i í ~g~ I I .~g i Well Cores/Samples Information: Name ADDITIONAL INFORMA,:PON Well Cored? Y / N:J Chips Received? .~ Analysis ~. Received? Name Directional Survey Mud Log Induction/Resistivity Induction/Resistivity Density Cement Evaluation Cement Evaluation Neutron Interval Start Stop 3~Q - ~r'~G SiJQ[ )/ Ö;j} ),¿ì~ A. Operator EVERGREEN RESOURCES (ALASKA) API No. 50-009-20026-00-00 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 2491 9/16/2003 Patterson Wireline Inclination Survey 5 Blu 330 2510 2/16/2005 Columbine Logging 5 Blu 3 1030 2000. 2/16/2005 Induction Gamma Ray/Patterson 5 Blu 320 948 2/16/2005 Induction Gamma Ray/Patterson 5 Blu 2 320 948 2/16/2005 Compensated Density Log/Patterson 5 Blu 0 2394 2/16/2005 Dual Spaced Cement Bond Log/Patterson í 5 Blu 0 2390 2/16/2005 Dual Spaced Cement Bond Gamma Ray Log/Patterson 5 Blu 4 1035 2002 2/16/2005 Compensated Density Neutron Log/Patterson ~-~-------- - Sent Sample Set Received Number Comments Ii ç).... Daily History Received? l./N & Formation Tops -- -- - - - ~ --- - -- .---------- DATA SUBMITTAL COMPLIANCE REPORT 7/6/2005 Permit to Drill 2021840 Well Name/No. D L SMITH 1 Operator EVERGREEN RESOURCES (ALASKA) API No. 50-009-20026-00-00 MD 2510 TVD 2510 Completion Date 6/8/2003 Completion Status 1-CBNG Current Status 1-CBNG UIC N Comments: Compliance Reviewed By: tL Date: )ì ~~~l~ :~:Q? :l?,¡ ,lRJj';'\',l"F f?~:;' ' '~ Ü'~ ("" ï¡:1 ~b ~ \ ::1 r \; ~ 1 I! ru" , I" ',~, i:, ; 'I ~J ',' LJ L U L:::I ..~·-I , 1""\' :' ,--' II "I ' 1 "II :;!:¡;! p..~ ,jj] Jr¡ \~ L 111 rl'J7) /' nJil /7 ./-; / 1/"., 'I, j ! /'\ \, '\. \,' 1°,'::/ I,' l ].:4 \ " ! II '\i. i' . .¡" '\ : Y ',I:! q \ ¡ W', 5 'II :W'\ '\ ~ :~ ": ./ i.J '\ : :-1J: j j'\ ~.-; ~ ) i :1 \ \ l' ì-;, 1.;; "" ì-=:J LJ W ,~/ LJ \~ J.J u FRANK H. MURKOWSKI, GOVERNOR AI~A~1iA OIL A.5D GAS CONSERVATION COMMISSION 333 W. ]T'< 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 Re: DL Smith #1 305-184 ;)Od-~If5if 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 oliday or weekend. A person may not appeal a Commission decision to Superior Co rt unless rehearing has been requested. DATED this~ay of July, 2005 Encl. ¡il\' ~ I .' July 13, 2005 RECEIVED JUL 1 3 2005 Mr. Winton Aubert Alaska Oil and Gas Conservation Commission 333 W. 7th Ave #100 Anchorage, Alaska, 99501-3539 Alaska Oil & Gas Cons. Commission Anchorage RE: Sundry Approval (Form 10-403) Pioneer Unit - DL Smith #1 Well Plug and Abandon Dear Mr. Aubert: Attached is the 10-403 form requesting approval to Plug and Abandon the DL Smith #1 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 DL Smith #1 P&A work. 'f This well can be killed with fresh water and has been granted BOP waiver's in - . the past by the AOGCC. If you have any questions, please feel free to contact me at 907-343-2111 or polyaj(á¿pioneern rc. com. Sincerely, ~ ,Jo vJ~\!-o/ \¡I-J 6 {\ (¿/', ~/( \ 1 ~I c '. ~,\.,i 'r-..A/'\.,.' . .... "" '-~~- r , Joe Polya Sr. Staff Drilling Engineer Pioneer Natural Resources Alaska, Inc. 700 G Street, Suite 600 Anchorage, AK ORIG!NAL .¡. STATE OF ALASKA ârt 1 ~S-")s-' ALAS( ')IL AND GAS CONSERVATION COMMI~ IN APPLICATION FOR SUNDRY APPROVAL 20 MC 25.280 Operational shutdown U Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: Abandon GJ Alter casing 0 Change approved program 0 2. Operator Name: 1. Type of Request: Pioneer Natural Resources Alaska, Inc. 3. Address: 700 G Street Suite 600 Anchorage, AK 99501 7. KB Elevation (ft): 278 ft KB (4'AGL) 8. Property Designation: Private 11. Total Depth MD (ft): 2510' MD Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): 1708-2220 Packers and SSSV Type: Total Depth TVD (ft): 2510 TVD Length n/a 320 feet 1 038 feet n/a 2497 feet n/a Suspend U Repair well 0 Pull Tubing 0 Development 0 Stratigraphic 0 WG/\-- "1/14 (?.-iJð$"" RECEIVED JUL 1 3 2005 ~ ~ -- Perforate U Ala!kavO~\~ ~s CUIt:~. Cb'(jt~ Stimulate 0 Time Extensionlf.!!J:hOrage Re-enter Suspended Well 0 5. Permit to Drill Number: /,' Exploratory 0 Service 0 9. Well Name and Number: DL Smith #1 / 10. Field/Pools(s): Pioneer Unit (610500) PRESENT WELL CONDITION SUMMARY Effective Depth MD (ft): Effective Depth TVD (ft): 2488'MD 2488'MD Size n/a 12.750 inches 8.625 inches n/a 5.500 inches n/a Perforation Depth TVD (ft): 1708-2220 BOP Test 0 Form 10-403 Revised 11/2004 N/A 12. Attachments: Description Summary of Proposal U Detailed Operations Program 0 BOP Sketch 0 14. Estimated Date for 7/21/2005 Date: MD n/a 320 feet 1038 feet n/a 2497 feet n/a Tubing Size: tf ~ 202-184 .,,/ 6. API Number: 50-009-20026-00 /' Plugs (measured): Junk (measured): CIBP @ 2497 N/A Burst Collapse n/a n/a NA NA 2950 psi 1370 psi n/a n/a 5320 psi 4910 psi n/a n/a TVD n/a 320 feet 1038 feet n/a 2497 feet n/a Tubing Grade: 2-7/8 6.4 ppf Packers and SSSV MD (ft): J-55 N/A Tubing MD (ft): 2241 13. Well Class after ~pposed work: Exploratory 0 Development 15. Well Status after proposed work: Oil 0 Gas 0 WAG 0 GINJ 0 Conditions of approval: Notify Commission so that a representative may witness 0 Service 0 "./ 0 Abandoned 0 0 WDSPL 0 Plugged WINJ 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 ,..., "I? J':::Þ_ ".-- r ~ f/I·Ve;.AJO~ COMMISSION USE ONLY Plug Integrity 0 Sundry Number: 3oS--1 J 'f Mechanical Integrity Test 0 Location Clearance c:g/ RB RBDMS 8Ft .II Ii OMS 8FL JUL 1 9 26/15 I iI 7005 COMMISSIONER O !'...., I ~" , r(llJ~ APPROVED BY THE COMMISSION L Date: Commencing Operations: 16. Verbal Approval: Submit in Duplicate ( ( Pioneer Natural Resources Alaska, Inc. Plug and Abandon Procedure Pioneer Unit DL Smith #1 Well The DL Smith #1 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 320 feet, 8-5/8 inch surface casing at 1038 feet and 5-1/2 inch production casing set at 2497 feet. Both the 8-5/8 and 5-1/2 inch casing strings were cemented back to surface. The well is perforated at various intervals from 1708 to 2220 feet. A current schematic for the DL Smith # 1 well is presented in Attachment 1. / The completion in the DL Smith # 1 well consists of a PCP hung at 2260 feet on 2-7/8 inch tubing. No drive rods or rotor are reported in the tubing and stator, respectively. /' 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 DL Smith #1 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 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 a~bl cement plug in tubing and annulus by pumping down tubing and taking returns out annulus into open top tank. 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. 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 D&J yard. Top off any unfilled annuli with cement. Collect photo documentation of surface cement and cutoff well. DL Smith #1 P&A procedure.doc Page 1 7/13/2005 7. Weld on well ID marker (1/4" x 24" x 24") with the following information bead welded on plate: Pioneer NRC APD: 202-184 Pioneer Unit DL Smith #1 API: 50-009-20026-00 Backfill well excavation and grade for positive drainage. Perform complete site inspection immediately after P&A operations if AOGCC inspector is available. DL Smith #1 P&A procedure.doc Page 2 7/13/2005 ~ Attachment 1 : Pioneer Unit DL Smith #1 Current Well Schematic Well DL Smith #1 API 50-009-20026-00 Qtr/Qtr See 1 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 1038 Field Pioneer Unit Country USA Casing 5-1/2 17 J-55 LT&C 2497 GUKB 274/278 Tubing 2-7/8 6.4 J-55 8rd 2241 No. I Depth I Length I OD ID Description 1 2497 2 4.24 N/A Alpha Tools Midget 1110,000 psi CIBP 2 2260 11.51 2.88 N/A 40N045 pump wI torquestopper No-turn. 3 2212 8 N/A N/A Perfs from 2212 - 2220,4 spf and 23 gram 4 2125 7 N/A N/A Perfs from 2125 - 2132, 4 spf and 23 gram 5 1974 4 N/A N/A Perfs from 1974 - 1978, 4 spf and 23 gram 6 1953 4 N/A N/A Perfs from 1953 - 1957, 4 spf and 23 gram 7 1858 4 N/A N/A Perfs from 1858 - 1862, 4 spf and 23 gram 8 1840 4 N/A N/A Perfs from 1840 - 1844, 4 spf and 23 gram 9 1756 4 N/A N/A Perfs from 1756 - 1760, 4 spf and 23 gram 10 1708 4 N/A N/A Perfs from 1708 - 1712, 4 spf and 23 gram PBTD 2487 3 2 Modified by JRM 7/10/05 ~ Attachment 2: Pioneer Unit DL Smith #1 Proposed Final Well Schematic 11 Well DL Smith #1 API 50-009-20026-00 Qtr/Qtr See 1 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-5S ST&C 1038 Field Pioneer Unit Country USA Casing 5-1/2 17 J·SS LT&C 2497 GUKB 274/278 Tubing 2·7/8 6.4 J-SS 8rd 2241 No. I Depth I Length I OD ID Description 1 2497 2 4.24 N/A Alpha Tools Midget 1110,000 psi CIBP 2 2260 11.51 2.88 N/A 40N045 pump wI torquestopper No-turn. 3 2212 8 N/A N/A Perfs from 2212 - 2220, 4 spf and 23 gram 4 2125 7 N/A N/A Perfs from 2125 - 2132,4 spf and 23 gram 5 1974 4 N/A N/A Perfs from 1974 - 1978, 4 spf and 23 gram 6 1953 4 N/A N/A Perfs from 1953 - 1957, 4 spf and 23 gram 7 1858 4 N/A N/A Perfs from 1858 - 1862, 4 spf and 23 gram 8 1840 4 N/A N/A Perfs from 1840 - 1844, 4 spf and 23 gram 9 1756 4 N/A N/A Perfs from 1756 - 1760, 4 spf and 23 gram 10 1708 4 N/A N/A Perfs from 1708 - 1712, 4 spf and 23 gram 11 Surface Well cutoff 5 feet below ground level. 3 PBTD 2487 Modified by JRM 7/10/05 =\'=I~GI~==I" RESOURCES (ALASKA) COR~ A Subsidiary of Evergreen Resources, Inc. ) August 24, 2004 Winton Aubert Petroleum Engineer Alaska Oil and Gas Conservation Commission (AOGCC) 333 West ih Ave. #100 Anchorage, AK 99501-3539 RECEIVEn AUG 3 0 2004 Alaska Oil & Gas Cons. COlH¡IH3~lon Anchorage åb~·t} RE: 10-404 Submission for Pressure Build Up Tests for Pilot #1 Dear Mr. Aubert: Attached are 10-404 reports of sundry operations forms and supporting documentation 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 above listed wells are currently shut in pending the evaluation of the pressure transient data. The 10-412 forms have also been included for your records. If you have any questions, please feel free to contact me at 907-357-8130 or shaneg@evergreengas.com. " Shane Gagli rdi Petroleum Engineer nQ1G'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 \ ALAS¡ ~ .lOlL AND GAS CONSERVATION COMMI......AoN 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 Evergreen Resources Alaska Corp. 3. Address: P.O. Box 871845 Wasilla, AK 99687 7. KB Elevation (ft): 277 ft KB (4' AGL) 8. Property Designation: Private 11. Present Well Condition Summary: RECEIVEr) AUG 302004 Plug Perforations U Perforate New Pool D Perforate D 4. Current Well Class: Development D Stratigraphic D Stim ulate U ,Alas\4atUít ~altllftl1$1. for. Éva~~~1O 11 Waiver D Time Extension [Anchorage Re-enter Suspended Well D 5. Permit to Drill Number: Exploratory 0 202-184 Service D 6. API Number: 50-009-20026-00 9. Well Name and Number: DL Smith #1 10. Field/Pool(s): Pioneer Unit (610500) Total Depth measured 2510 feet true vertical 2510 feet Effective Depth measured 2191 feet true vertical 2191 feet Casing Length Size MD Structural N/A N/A N/A Conductor 316 12.75 320 Surface 1034 8.625 1038 Intermediate N/A N/A N/A Production 2493 5.5 2497 Liner N/A N/A N/A Perforation depth: Measured depth: 1708 - 2220 Representative Daily Average Production or Injection Data Gas-Mcf Water-Bbl Casing Pressure o 18 10 000 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. True Vertical depth: 1708 - 2220 Tubing: (size, grade, and measured depth) Packers and SSSV (type and measured depth) 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 13. Prior to well operation: Subsequent to operation: 14. Attachments: Copies of Logs and Surveys Run Daily Report of Well Operations Oil-Bbl o o xx XX Contact Shane Gagliardi Printed Name ßne Ga9Trdi Signature ~ y Form 10-404 Revised 04/2004 Plugs (measured) 2488 Junk (measured) TVD Burst Collapse N/A N/A N/A 320 N/A N/A 1038 2950 1370 N/A N/A N/A 2497 5320 4910 N/A N/A N/A 2.875 J-55 2276 N/A N/A Tubing Pressure o o Service D GINJ D WINJ D WDSPL D Sundry Number or N/A if C.O. Exempt: 304 - 136 Title Alaska Project Engineer Phone 907-357-8130 OR'G~~l Date 8/16/2004 lÃUG 3 1 2~)'Üi:submit Original Only STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RESERVOIR PRESSURE REPORT 1. Operator: 2. Address: Evergreen Resources Alaska Corp. 3. Unit or Lease Name: 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) 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 DL Smith #1 G 07/28/04 1418 PBU 69 610500 50-009-20026-00 P.O. Box 871845 Was ilia , AK 99687 5. Datum Reference: 6. Oil Gravity: GL - 277 ASL N/A 16. Depth Tool 17. Final 18. Datum TVDss TVDss Observed (input) Pressure at Tool Depth 2280 985 277 nd instructions of the Alaska Oil and Gas Conservation Commission. 21. All tests reported herein were made in accordance with the applicable rules, re I hereby certify that the foregoing is true and correct to ~f my 7d e. Signature ~_- Printed Name Shane Gagliardi Form 10-412 Rev. 9/2003 INSTRUCTIONS ON REVERSE SIDE Title Alaska Project Engineer Date 8/16/2004 7. Gas Gravity: 0.5663 19. Pressure 20. Gradient, Pressure at psi/ft. Datum (cal) 0.432 4 -- .~ Submit in Duplicate DL Smith #1 PBU Test 5/21/04 - 7/28/04 Perfs: 1708 - 2220 1,000.00 100.00 Leqend (psiA): Pressure (DegF): Temperature - - - 900.00 95.00 800.00 90.00 700.00 85.00 ~.... 600.00 80.00 ~ ëñ 500.00 .e: Õ 75.00 ~ .2! 400.00 r--1 ~ 70.00 300.00 65.00 --- 200.00 60.00 100.00 55.00 0.00 0.00 160.92 321.84 482.75 643.67 804.59 965.51 Elapsed Time (Hrs) 1126.42 1287.34 50.00 1448.26 1609.18 Ver 1.0 tit-1/8-28-99 Summary Notes -.._"-,_....._-,--_.~ -- .._--~---~---,. yy~,i~.f2r.fig.!º..fi.Œ~b"g~..ª.Q}j~~~_.+..._..__._..._................., .............._ ....... ....., . MIRU EWS Rig #9619 from RL Smith. Take g?~.§?ITlPI~..:ß~~.P?çt.05~~..R~!'D9Y~_griy~..Q~?g.._.. POOH wi 8~!/ªnrg~~.(11~'?~9(.1J ª'E~~Yr9_<!~LJ::!/~"1_~'pg.li~~ rod and a 40N024 insert Stand back in doubles. SOON. -."",.. "-'I'··""·"·,~.",·.·"""",...,··,, .,., _;_.'".,',.,._ '.... ., 1600 9 1700 1 1830 1.5 0700 1600 1700 Activity End Duration Start \24hrForecast Testing Accldent (y/n) I No Last Safety Meeting Date POOH w/ Rods Well Total ($) I I $74,726.00 DJ/EWS Current Activity Daily Total ($) $1,350.00 Contractor po# I I Evergreen Resources Alaska Field I Pioneer state IAlaska Country IUSA operator I Mat-Su Daily Completion Report I End \5/20/2004 IAPI 150-009-20026-00 Rng 3W county INO 11 TWP 118N Report No 185 Begin 105/20/04 Well I D. L. Smith Qtr/Qtr N E/N E I See 11 \superVlsor Gagliardi ') VeT 1.0 lil·1I8·28·99 - -~-_._--_. -.---.------.,-----.--.,. .... -~- - . .-...---....-...--- _.- .-.~ ....-..,....... ~ª.~ª-r!.r.ig!_J~!..'!!ªI.r.!1:...... .R!ggy~r!op~ll.tþg~ '" POOH wi 71 of 2-7/8 and mud anchor. Stand back and LD mud anchor. Make test assembly cgnsisting_ of (1 )2'pe~ sub, (1) 2' su~ ~nd a bul! plug. Pow~r up .Ç?9~ge.~41?7 @ 11:1~:._ ... º.~.~9~~uE~99.rªŒ)rn~.~f!g1.~s.~gs.~~pl~Eªt~f9Eflrst 24hrs and 30 sec sarnpl~ rª!~_.f9r._.~~~ªY-.~~ TªIIY9~tof the hole. TIH wi 72 jts 2-7/8 tbg. Land gauges @ 2278'. Seat nippleªþg'y~p'~~P: .... ....,.......... over to run rods. .T!.~."iIª~]!ªI.'r9~s..{j}4'ªD~(1)ª'P.9Qi~s,1.~ 1 14n..x.1.~'P9Iis.h rod and 4ºNqO?4.p.~~E:... !:.~!9.!.!y.~Q.~ª.~"g~.~_~~..~1~.Œ.-@..1§.º.~~.~.:...'!!ªi!.f9~.'!!.~!~!QJ?~_I!1_P.._.~P.' ......._ .Bº~º.~YY~..~~~J~..!9.ª.~~.9~_Þ.~E9 :..§-ººy,(............ ... Activity 124hr Forecast I Testing $76,076.00 Accldent (yln) I No ILast Safety Meeting Date TIH wI rods Well Total ($) I DJ/EWS Current Activity Dally Total ($) $1,350.00 Contractor po# I I Evergreen Resources Alaska Field I Pioneer Istste IAlaska Country I USA operator I Mat-Su superVlsor IGagliardi Daily Completion Report lEnd 15/21/2004 IAPI 150-009-20026-00 Rng 3W county INO 11 TWP 18N ) ') Summary Notes 1130 1330 2 1330 1430 1430 1600 1.5 1600 1730 1.5 0800 0930 1.5 1130 2 0700 0800 0930 End Duration Start Well I D. L. Smith Qtr/Qtr I NE/NE Isec 11 Report No 186 Begin 105/21/04 Ver 1.0 lil-1I8-28-99 Summary Notes -. ~ --.-- ..-..--.-..--- --- --,,- ,". ."-. ....._,. "-.. ..-. '- ".. MIRU EWS 9619. , ......,.......··,·,··'~,.·i'.,_.".,.._·. r .".......R'.' "'_..._,···.·,·w.·,,·.·. "". '" ...'"...... "." ~'" -'.......'.., ,......" ,to ""'''''.,_""" ~., ,.. " .. "., , . ,. , ,_.' _'" '.~'" __"'~" .,..,.,.."., """. ",."........." .~,.... ",_"."~."...,, . Rig.~ptq .PºQIj,'!'I!!ª:'..E9.g.~: '''' ' ...." '''._' ...,., . PººIj.'!'Lª~.?/ª.".~~9.~!"t4..'.p~Ð.t~..~9.1ª'...pq~X!_tJ..ª~..1..-.1.I.~".'pqli~h£q.~"é!Q..~,~º.~º?4...!~~_~~.E.~~P.........._ w/ tbg nO-I urn Lay rods down POOH wI 72 of 2-7/8 tþgaQ9!~~L~~~~rnþly..~.t9~~!þ,g.þ?~~.:. TIH wI 72jt~2-7/8tbg.~~n~tbg@22741, Seatnippl~ abqvep~rnP' .. R!g~ver to run rods, TI H wI 1-1 14"...~.16Ipg.li~.hrg~!9r,~t!Y~h~~9EI~~~_~,~~.!..".~~!_9EiY~.h~~9~.~".~~.9".Bº,M"ºJ,~"~_~.ª~.i.t_Q.:.._..",,.._,,"... Start End Duration 0700 0800 1 "." '"'_"_W_'"_"'_'""'''~'_. 'I_""_"~'_.".'.'_'·.·'''''''' ,_.... . ,. 0800 0900 1 "..... " 0900 1000 1 ,- 1000 1330 3.5 1330 1500 1.5 1500 1530 0.5 1530 1630 1 Activity Evergreen Resources Alaska Field Pioneer state IAlaska Country IUSA 124hr Forecast I Shut in for eval IAccident (y/n) I No I Last Safety Meeting Date Retreive test assembly Well Total ($) I I $77,426.00 Contractor po# I DJ/EWS Current Activity Dally Total ($) $1,350,00 loperator I Mat-Su county Daily Completion Report I End 17/27/2004 IAPI 150-009-20026-00 IRng 3W ¡NO 11 TWP 118N Well I D. L. Smith Qtr/Qtr IN E/N E I Sec 11 superVlsor Gagliardi IReport No 187 IBegin 107/27/04 ') ) " " =\'=I~GI~==I~I ) RESOURCES(ALASKA)COR~ . A Subsidiary of Evergreen Resources, Inc. ') 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@everqreengas.com. Sincerely, sf2 -In- Shane Gagliardi Petroleum Engineer RECEIVED APR 2 1 2004- Alaska Oil & Gas Cons. Commission Anchorage 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 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): 278 ft KB (4' AGL) Operation Shutdown 0 Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: Development 0 Exploratory [8J Stratigraphic 0 Service 0 Perforate 0 Variance 0 Annular Disposal 0 Stimulate 0 Time Extension 0 Other [8J Re-enter Suspended Well 0 5. Permit to Drill Number: -' 202-184 / 6. API Number: /' 50- 009-20026-00 9. Well Name and Number: DL Smith #1 /"'" 8. Property Designation: Private 1 O. Field/Pool(s): Pioneer Unit (610500) 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): I Total Depth TVD (ft): I Effective Depth MD (ft): I Effective Depth TVD(ft): I Plugs (measured): 2510' MD 2510' TVD 2488' MD 2488' MD CIBP @ 2497 Casing Length Size MD TVD Burst Structural N/A N/A N/A N/A N/A Conductor 316 12-3/4 320 320 N/A Surface 1034 8-518 1038 1038 2950 Intermediate N/A N/A N/A N/A N/A Production 2493 5-112 2497 2497 5320 Liner N/A N/A N/A N/A N/A Perforation Depth MD (ft): I Perforation Depth TVD (ft): I Tubing Size: Tubing Grade: 1708-2220 1708-2220 2-7/86.4 ppf J-55 Packers and SSSV MD (ft): Packers and SSSV Type: N/A N/A 13. Well Class after proposed work: Exploratory [8J Development 0 12. Attachments: Description Summary of Proposal [8J Detailed Operations Program tEI··--, BOP Sketch 0 14. Estimated Date for /,,,, / Commencing Operationr12 M51Ý 04 16. Verbal Approval: l_,.....:;/ Commission Representati\lé: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Date: 15. Well Status after propo~d work: Oil 0 Gas [8J Plugged 0 WAG 0 GINJ 0 WINJ 0 Contact Shane Gagliardi Printed Name Shane GaQlia~i aJ Signature fl- ~ Title Petroleum Engineer Phone 907-355-8569 Commission Use Only Date 4/14/04 Sundry Number: Conditions of approval: Notify Commission so that a representative may witness Plug Integrity 0 BOP Test 0 Mechanical Integrity Test 0 0., j W M-c 2 S , "L.Q S (~\) GLli €v- I-uL t e Other: r 1."Y 5 i¡J6Æ 4-{22-/ZOO4- Junk (measured): N/A Collapse N/A N/A 1370 N/A 4910 N/A Tubing MD (ft): 2241' Service 0 Abandoned 0 WDSPL 0 30f-/3~ /1 Location Clearance 0 80PE ¿,,,, a-pproRŒCE/VED APR 2 1 2004 Alaska 0;1 & Gas Cons. Commission Anchorage Date I¡{.,//I.t ~~~ d~~ate COMMISSIONER BY ORDER OF THE COMMISSION '--- OR I GI NAL iØJMSBft 14~ ~ 2/. " ) 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 pond7" 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 2-7/8 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' r 6,1/ A- 11. Set no-turn Z z.7 G Ih"~f" 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 Tbg landed Top Perf Btm Perf Pump RPM DL Smith #1 - 2276 /" 1708 2220 150 Stromberg #2 2259 1695 2208 150 RL smith #3 2179 1674 2178 200 Cornhusker #4 2379 1832 2340 300 =\'=I~GI~==I'I 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 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--j<2-o3 Date 10.5 11 9 14 11.5 14 13 14 Surveying Compnay Patterson Wireline ~~~ Q~~~- Survey Conducted By: Pat Patterson Owner ~~~~ ,,",,--.. ~ Signature RECEI\ít:f) SEP 1 6 2003 Maska Oi\ & Gas Cons. Co~3s¡on .~nchOfage =\'=I~GI~==I'~ ) RESOURCES (ALASKA) CORP. 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- S trom berg - Comhusker - 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 shane g@evergreengas.com. liø· Shane Gagliardi Petroleum Engineer L;., ~ ~ \- " ""'\"'? ORIG\NAL 1075 Check Street, Suite 202 · Wasil/a AK 99654 pn Rnx R71R45 . Wasil/a. AK 99687 · TEL 907.357.8130 . FAX 907.357.8340 _c,t.T· ) ) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a. Well Status: OilD Gast8J PluggedD AbandonedD SuspendedD WAGD 20AAC 25.105 20AAC 25.110 GINJD 2. Operator Name: Evergreen Resources Alaska Corp. WINJD WDSPLD No. of completions _ Other 5. Date Comp., Susp., or Aband.: 6/8103 3. Address: P.O. Box 871845 Wasilla, AK 99687 4a. Location of Well (Governmental Section): 6. Date Spudded: 10/21/02 7. Date TD Reached: 11/20102 Surface: NE/NE Sec 1 Twn 17N Rng 3W, Seward Meridian Top of Productive: Same 8. KB Elevation (ft): 278 ft KB Horizon: Same 9. Plug Back Depth (MD + TVD): 2488' KB MD Total Depth: Same 4b. Location of Well (State Base Plane Coordinates): Sec 1 Twn 17N Rng 3w Surface: x- 3293' F~L y- 293' FWL :s TPI: x- Same y- Same Zone-4 10. Total Depth (MD + TVD): 2510' KB MD 11. Depth where SSSV Set: NIA feet MD Zone-4 1 b. Well Class: Development D Exploratory t8J Service D Stratigraphic Test D 12. Permit to Drill Number: 202-184 13. API Number: 50-009-20026-00 14. Well Name and Number: DL Smith #1 15. Field/Pool(s): Pioneer Unit 16. Property Designation: Private 17. Land Use Permit: NIA TotalDepth: x- Same y- Same Zone-4 19. Water Depth, if Offshore: 20. Thickness of Permafrost: NIA 18. Directional Survey: YesD Nol8I NIA feet MSL 21. Logs Run: Compensated Density Neutron Log; Induction; Gamma Ray; Cased Hole Neutron; Dual Spaced Cement Bond Log; Mud log, Inclination Survey 22. CASING, LINER AND CEMENTING RECORD CASING WT. SETTING DEPTH MD SETTING DEPTH TVD AMOUNT SIZE PER GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED FT. 12-3/4 36 N/A 0 320 0 320 16 40 sx Class A 8-518 23 J~55 0 1038 0 1038 11 95 bbls Class A 5~1/2 17 J-55 0 2497 0 2497 7 -718 120 bbls Class A 23. Perforations Open to Production (MD + TVD of Top and Bottom Interval, Size, and Number; if none, state "none"): 2212-2220,0.45" 23 gram, 32 holes @ 4 spf 2125-2132,0.45" 23 gram, 28 holes @ 4 spf 1974-1978,0.45" 23 gram, 16 holes @ 4 spf 1953~1957, 0.45" 23 gram, 16 holes @ 4 spf 1858-1862,0.45" 23 gram, 24 holes @ 4 spf 1840-1844, 0.45" 23 gram, 16 holes @ 4 spf 1756-1760,0.45" 23 gram, 16 holes @ 4 spf 1708-1712,0.45" 23 gram, 16 holes @ 4 spf 24. SIZE 2~7/8 TUBING RECORD DEPTH SET (MD) 2263 PACKER SET (MD) NIA 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED ** See Attached ** 26. Date of First Production: 8 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: 8 June 03 Test Period .. NIA N/A Flow. Tubing Casing Pressure: Calulated .. Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API (corr): Press: 24-Hour Rate NIA N/A 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas, or water (attach separate sh'éet,'ff necëssa.~r· Submit core chips; if none, state "none". None -.. --- ORIGINAL Form 10-407 Revised 4/2003 G%J§ -- ~~ ._~ED:c ~ ~'"",~,~ .....-r.......~..~..,~........ CONTINUED ON REVERSE SIDE ~ ~~ Bft SfP iR'mr~ NAME ) GEOLOGIC MARKERS MD I TVD J 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". ·'1 ~...' 28. None 2212-2220 Injection Fall Off Test; see attached graphs /\ 1) r; 0, '~) I '"' 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 Title Petroleum Engineer Phone 907-355-8569 P~inted Name SQaile Ga~frdÞÝ1. Signature d'".¿,p_ (J.9k'JIa/--- 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 1a: Classification of Service Wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-In, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 4/2003 OR!Gi, I Report No 11 I Begin \11-17 ~02 0600 Well IOL SMITH NO 11 Qtr/Qtr I Sec 11 .TWp I T17N Target Planned TD(ft) Current Depth (It KB) I Current Activity AFE DailY Total ($) 169850 Conductor 1123/4" @ 320'SUrfCSg. Spud Date (MM/DDIYYYY) 111-18-02 ') Daily Drilling Report lEnd 111-18-020600 IAPI 150-009-20026-00 operator IRng lR3W Icounty IMAT-SU 1# fRi9 Name EWS RIG #1 supervisor D.WAL TERS EVERGREEN RESOURCES ALA: Field PIONEER UNIT I State ALASKA Country ¡USA Project PIONEER UNIT DRLG 11" @ 670' Well Total ($) I 1169850 Int Csg 124hr Forecast ITD SURF @ 1045',TOOH,LOG,CMT ¡Accident (y/n) I N I Last Safety Meeting Date I # Prd Csg I I End Date (MM/DDIYYYY) Start End Duration 0600 2200 16.0 NO ACTIVITY 2200 0100 3.0 MIRU EWS RIG #1 0100 0230 1.5 TIH W/11" T/320' 0230 0400 1.5 DRLG 11" F/320' T/580' 0400 0500 1.0 REPAIR BLOW LINE 0500 0600 1.0 DRLG 11" F/580' T/670' Notes I Summary I Activity I Driller TD (It KB) I Bottom Csg (It KB) --.,."",,-..-.,-..,,,-..,..,.' ~'.'". _. . ., 'c' ,~, ......._, . Ver '.0 ÜI·1I8-28-99 I Report No 2 I Begin 111-18-02 0600 Well I DL SMITH INO 11 Qtr/Qtr Isec 11 Twp IT17N Target Planned TO(ft) Current Depth (ft KB) l Current Activity AFE I I Daily Total ($) 59660 Conductor 1123/4" @ 320'ISUrf Csg. Spud Date (MM/DD/YYYY) 111-18-02 Start End Duration 0600 0930 3.5 0930 1200 2.5 1200 1330 1.5 1330 1500 1.5 1500 1830 3.5 1830 0230 8.0 0230 0600 3.5 Notes I Summary I } ) Daily Drilling Report I End 111-19-02 0600 [API [50-009-20026-00 ¡operator fRng R3W county MAT-SU 1# Ri9 Name IEWS RIG #1 supervisor I D.WAL TERS [EVERGREEN RESOURCES ALA: Field ¡PIONEER UNIT state ALASKA Country I USA Project PIONEER UNIT DRLG 7 7/8" @ 1520' Well Total ($¡ 1229510 Int Csg 24hrForecast DRILL 7 7/8"HOLE IAccident(Y/n) IN ILast Safety Meeting Date 1# Prd Csg I I End Date (MM/DD/YYYY) Activity I Driller TD (ft KB) I Bottom Csg (ft KB) DRLG 11" F/670' T/1045' 9!BÇ ~9~~.CLEðN!!º9~ . . ~IRU PATTERSON WIRELlN~,~OG OH INT~Y.AL!RD WL RUN}6.JTS,ª5Jª",2~~, ~.~55,STCÇ~G.!T()TALlN.G= 1 0~,ª·,~9' ,s.~T.@ ".~ 037 .~' RU C~T'3~,PUry1P~O.êBL.S. H20,.10 BBL~.C?~~/ºX~,.?O,.,~~~s..~?q'.~5.êê.L.ª.Ç~I.@J5.·ª~pISP W/63 8RL?H20,CIRÇ 5 BêL.S CMT T9pl!!'8.'P-525ffJ T FALLOACK .VY9Ç,2100~RS,ry1I~. ~ T9P º~TA~~~~V~W!?êê~ªÇf0T,f~LL D~.L.G 77/8" F/19ªª' TI15.?O',DUSTING ". Ver 1.0 ÜI-1/8-28-99 Planned TD(ft) Daily Drilling Report I End 111-20-02 0600 IAPI 150-009-20026-00 [operator Rng IR3W Icounty MAT-SU I # I Rig Name I EWS RIG #1 supervisor ID.WAL TERS I Report No 13 I Begin 111-19-02 0600 Well I DL SMITH INO 11 Qtr/Qtr Isec 11 Twp IT17N Target EVERGREEN RESOURCES ALA: Field PIONEER UNIT Istate ALASKA Country I USA Project PIONEER UNIT Current Depth (ft KB) I Current Activity CHASING OLD SHEP AFE I IDaily Total ($) 22850 Well Total ($)1 1252360 Conductor 1123/4" @ 3201SUrf Csg. 185/8",23# @ 1037.60' Int Csg Spud Date (MM/DDIYYYY) 111-18-02 I End Date (MM/DDIYYYY) Start End Duration 0600 1630 10.5 1630 1730 1.0 1730 2000 2.5 2000 2200 2.0 2200 2330 1.5 ?330 O?30 3.0 0230 0300 0.5 0300 0500 2.0 0500 0.600 J.O Notes I Summary I 24hr Forecast I Accident (y/n) I N I Last Safety Meeting Date 1# Prd Csg I I Driller TD (ft KB) I Bottom Csg (ft KB) Activity P.R~(37.}(?"~ºh~ f/1_520' TI?510'!.~I~~CI.RÇpRE~?~,.!º~9_~~..._ CIRC HOLE CLEAN TOOH TIH W/7 7IBuTRI-CONE BIT T/1400' .' MIXG~~_~J.9AºHOLE.@ ~4..o.0' ... IIH,ÇL~ANI~Gº~r~~lp~S: 166!?.'.16~º, 1899,1 ªº?, ~~~O, Jª65?000~?01º!2_??º,.??~?_?340,2.3ª~ ?40~!24.~.o,.S9.qD F1hL f/?4ª§ T/251Q'" SPOT HVY GEL IN ANNULUS 4 , ,... TOOH T 11000' SHUTDOWN AS PER JOHN T .."....' ..~,'~'~-,' ,,-~.. '.- .''''''~''''."..-.._"......, ..,,,,,.. Vel 1.0 ÜI·1/8-28·99 ) Planned TD(ft) Daily Drilling Report lEnd 111-21-020600 IAPI 150-009-20026-00 operator Rng R3W Icounty MAT-SU 1# Ri9 Name EWS RIG #1 supervlsor DWAL TERS I Report No 14 I Begin J 11-20-02 0600 Well ICL SMITH INO 11 Qtr/Qtr Isec 11 Twp IT17N Target IEVERGREEN RESOURCES ALA: Field PIONEER UNIT state ALASKA Country USA Project ¡PIONEER UNIT Current Depth (ft KB) I Current Activity RIGGING DOWN AFE I DailY Total ($) 70790 Well Total ($)1 1323150 Conductor 1123/4"@ 320'surfcsg. 18518",23#@ 1037.60' IntCsg I Spud Date (MM/DDIYYYY) 111-18-02 I End Date (MM/DDIYYYY) 11-20-02 0600 1400 1500 1730 1800 1930 2100 2130 2330 0000 0130 0300 Notes I Summary Start 1400 1500 1730 1800 1930 ?100 2130 2330 0000 0130 0300 0600 3.0 End Duration 8.0 1.0 2.5 0.5 1.5 1.5 0.5 2.0 0.5 1.5 1.5 124hr Forecast MOVE ???? I Accident (y/n) I N I Last Safety Meeting Date I # Prd Csg 151/2"17# SET @ 2497.29' ¡Driller TD (ft KB) aottom Csg (ftKB) I Activity ~~vrpQ.YVNF/tv1E'pI~ SHOE,,A,S pI;R. Jº.~N.T TOOH W/7 7/8" TRI-CONE " "..' .". ."..~·"."'~d"., ,_, ." .... MI~~PATT~~§ON WIR~LINE,~9.G!STOPPED@ 2004\RD WL RU CSG TOOLS R~N ~_~./?II~7.~.K,~~5..LTCÇ$~J9..?J.~§' . .R.~. VY~!LºC?,IqQ~?§TOrr[p @?A.9.S' RUN 5 1/2" T/2492.29' , "". "'", d,. ,,'.\' '. ""~"'.._ ~." , R~.WL!R~NCf\$.~º...HºL~ G-'3,~..L.ºG1 Bºr.0.º.VY~ . ..._..._..._................. ............... .... .............. ........... ..._.._...." .... ..........___...___.. ~ND CSG@ 2497.29' PUMP 60 BBLS GEL WATER .~, ,. ',.. ",.~, '. .' ,,_ ...", _" ,- .., .. '., ' '" .. ".' . ~. ,0' ,...... ....,....',~'"...".",," ,. _',o.,~ ...., .. . '" ~,.",., "w'o." .c."...'"....~... "."_ ......,........~"'. " .. '.,.._"_".."..__~..""._.. ,,,_,~. Ç.MT .?.1./?:',e~~p,. ?Q~ªLS.~.?q!1ºJ3ªhª..ºY~.!.1Q..êê~ª.t?º!j.?9.êê~.$..Ç~T @.J~.'.?~,g!.§pvy!§~.~.. . BBLS H20,PL.~G. Q9'fJN@Q?4?!.ÇIR9 .1/2.. .ªê~. grv1~.Iº.P'IT,.I.§! p.:::??~~...._.._..._..._..._._.... ....._. ... ........ ..... ,,__...... . RIGGIN~ DOWN,PREP TO M9VE,ry1Q\lI.NG Ç0rv1PR~.§.êq~§9F~~ºÇ...T~_B!':J~º.!B.~.Ç.~..&...II3~.I~~.B_... . OVER .. ............_~. ~........ ._"............,,~,..,. ...,... . ._"_.'",,,..~.,.. ~.._. . . . ... """. .... ."'....,, '" "''''.''''''.~ .. ." ..-.~. .~._.... .....' '--'~"-'" .""'"..~" " .....- .."'.. .. .~.... . "'_'..".0" . 'N'," ". '" k_....'... "'"...w_......,~. ... ..-'~'. .', ....... 'NO' _ _..._ . - ..,.-. -. ...~. ~ . .. .. ,'--,. .... -,-... -_.,- . .. ._.. .- .. Ver 1.0 ill· 11 8·28·99 ) Daily Completion Report I Report No I IBegin 04/02/03 lEnd I 4/2/2003 Well I DL Smith ¡NO 11 IAPI 150-009-20026-00 QtrlQtr I NE/NE sec 11 TWP 118N Rng 3W I County Contractor EWS Unit #9619 Current Activity Preparing to drill out cement PO# Daily Total ($) $1,940.00 Weil Total ($) I I $1,940.00 I Supervisor I Michael Polley operator IEvergreen Operating Corpor. Field I Matanuska,Susitna state IAlaska Country IUSA 124hr Forecast I Drill out cement ACCident (yln) I No I Last Safety Meeting Date I Start 1300 I End I Duration 1700 4 I ~~ M.ov~.q in. ~~cu.r~.d t~EP.~r()u~dw.~IIb.~~g.. _Rigg.e.º uP:Çh.9~,ge..gJ~9_e.9~.iprne~t9.v.~T,fr()æ 3 1/2" to 27/8".Mov~dre.yerse.t~~kßndt~gt() 'qcatign:SDON COST ESTIMþ.I~; RIG Kill Trucks Wate..r Tr~cks; Tubing Rods Wire line work Down hole tools Tool Hand Cement: SUPERVISION MiSe $640.00 , $6.00 $6.00 TOTAL $300.00 . ..' .....,. .'. . ,.....' ." u $1,900.90 $1,940.00 Notes Summary Ver 1.0 ïl-1I8-28-99 I Report No 12 Begin I 04/03/03 Well I D.L. SMITH Qtr/Qtr INE/NE sec Contractor EWS Unit #9619 PO# Dally Total ($) I Start I End I Duration 0700 0900 2 0900 1030 11/2 1030 1130 1 1130 1800 61/2 Notes Summary I Activity T.IH withn~w 43/4" bit,3 7/~" ~9t9r and!þg.Tªgc.~l1len.t@?~~4"'_.. YVaitonc.~Il1.ent P.u"I11P. Rig upcement pump. Drill rubb~r pl~gand cement from 2394' t9 2487'. Di~'pI.~~~9.~91~~i!~ clean fresh water with bactericide. TOH with tbg,~nd tools. Shut well in with frac. valve."R!gg~990w~..and moved off. 11 ¡NO 11 TWP 117N Current Activity $9,342.00 Daily Completion Report I End I 4/3/2003 IAPI 150-009-20026-00 Rng 3W Icounty Drilling out cement Well Total ($) I I $11,282.00 C,OST ESTIMATE; RIG Kill Trucks , Water T~uc.k~; Tubing Rods Wire line work Down hole tools Tool Hand Cement pump SUPERVISION MiSe Down hole motor with mar TOTAL .. .".--" .. .........,......- $?~ºOO.OO $160.ÖÖ $0.00 $O.ÒO $2,000.00 "$300.0'0 . $1,000.00 ," $3,882:00 $-9,342.00 supervlsor Michael Polley loperator IEvergreen Resources Alaska Field Pioneer I Matanuska,Susitna Istate IAlaska Country IUSA 24hrForecast Set CIBP Accident (y/n) I No ILast Safety Meeting Date Ver 1,0 tit·1/8·28·99 Well I D.L. SMITH Qtr/Qtr NE/NE sec /1 ¡NO 11 TWP 17N Daily Completion Report lend 14/4/03 1600 ¡supervisor Shane Gagliardi IAPI 150-009-20026-00 ¡operator Evergreen Resources Alaska Field Pioneer Rng /3W Icounty Matanuska,Susitna Istate IAlaska Country USA I Report No 13 I Begin 14/4/03 1100 Dally Total ($) $12,380.00 Set Pressure Gauges Well Total ($) I 1$23,662.00 Accldent(Y/n) 24hr Forecast Fall Off Test I No !Last Safety Meeting Date Contractor PO# I EWS/PaUers, Current Activity Start End Duration Activity 1100 1200 fv1IRU Patt~rson. TIH wI Alp~a s.~trv1iqge,t.I.1 JO,qqo. psi qJ~E;_s~.t..@24ªª:fl~Jq~.~y~1 @ ~§º'~ 1200 1300 TIH 'l!1 8' 2~gr9m 4 SPF e~pendaþl~p~~.g~n~~~99t 'pe~s.@ 221?'~~~?º'. All shots fireq. Make two dump bailer runs wI 32% HCI acid. Du~p bail a~id@2202'. 1300 1500 2 TIH wI collar st~p t9.ol; tool set ~9~~.@ 93'. POOH: Make secon~..a.~~~p'-~,.!q~I~~t down@L~0981. . Set collar stoP..9n third attempt.@?~}~. pow~r.ga~g~~~p@1.4:?~.:gO. TIH w/g~~g~~.~Qg no blow t091;set @ 21361. 1500 1600 MIRU EWS.cmt pump. 0.5 BPM@.2160 p~i for O~? BBL.. 0.5 OPM @ ~230 p~i ror 6.5 B~L Final: ?240 psi ISIP 2100p~I. Shut well in wI 2100 psi for fall off test. 1600 SWIFN. ,'.... , COST ESTIMATE TOTAL $500.ÖO..·· '$80.66 . . ".'.~' "pO ".'."" ... ".' ,.. $7,000.00 . $1,500.06. $2,000.00 $30Ò:ÖO $1,000.00 $12,380.00 Kill Trucks Water Trucks Wire line work Down hole tools Cement P~rl1P . SUPERVISION MiSe Notes Summary V8f 1.0 ÿl-1/8·28-99 Daily Completion Report lEnd 14/8/03 1000 supervlsor Shane Gagliardi IAPI 150-009-20026-00 operator Evergreen Resources Alaska Field Pioneer Rng 3W Icounty I Matanuska,Susitna state IAlaska Country USA ReportNo 14 Begin 14/8/030800 Well I D.L. SMITH QtrlQtr INE/NE sec 11 Contractor POI I 0800 0830 0930 Notes Summary Start NO 11 ITWP 17N Daily Total ($) EWS/Patlers Current Activity $6,380.00 Set Pressure Gauges Well Total ($) I I End Duration 0830 0930 0.5 1 1000 0.5 ty11 f~.~ P ~tt~r~~n _a.nq, ~vy ~. T~,~v,J '/.'~I! ~~a,g"a.~q .!"I~,".V 1,~()ê!9,-^,~~~riey,i.Qg..t9'<>!·, POQ.~v,J (ga.,~g.~§~., .~YY§,P~,rTlP~º Jh.~..f9.Uq~ing,: ,,,,__. ....__"",,,.,.. 0.5 bbl O~~ BPM 1?90psi , ,~.O bbl 0.5 B~_~ 2,18.9..ps.,i, ., 1.5 bþl 0.5 ~p.ry1 . ??~,ºps!_ 2.0 bbl 0.5 B.~M 2280 p~i 2.5 bbl 1.0 BPM 230ºp~i" 3.0 bbl 1.0 BPM 2320 psi 3.5 bbl 1.2 BPM 2320 psi 4.9 bbl 2~.9 BPry1 2400 psi 5.0 bbl 2.0 BPry1 2~qºp~i 6.0 bbl 3.0 BPM 2400 psi _ !~W?j.9.º psi, Leak Off: ?~.in~tes 1770 psi 1 ºry1ln~tes 1539 psi 15 Minutes 14~º,p~i J31eed Rfe~~ure dov.yn. TIH wI No BI.9,^,~ool andg,a.yg~s.~ .§~~g.a.~g,~,~@_?J~~~ COST ESTIMATE Kill Trucks Water Trucks Wire line work Down hole tools Cement pump SUPERVISION MISC TOTAL 124hr Forecast I Fall Off Test IAccldent (y/n) I No I Last Safety Meeting Date Activity --"~ ", ........-... ". ,..~'..,...,........_,,'-,....._..~ - "'....- ._....".~--,-~..~ --.. ,......-- "..~.". ,.~... .....".....'. - .~.....,.,.._,_..",,,._.. .... ..... " . $500.00 .. "$8if ÖÖ .. $ {66Ó.Gb $f,sÖÖ.OO . $2';Õ'öÒ:öþ $300.00 $1,pOO.OO $6,380.00 Ver 1.0 lit-1/8-28-99 \ ) 1 Report No I:!I!~ IBegln l~t/03 Well I[I~L. SMITH Qtr/Qtr I,~~/N E I See INO TWP Daily Completion Report lend IIt/03 supervlsor 1~IÐane Gagliardi IAPI lill-009-20026-00 operator Ilvergreen ~,:sources Alaska Fleldi'oneer Rng I~I~~ county 1,~'~tanuska,Susitna IStale I!)?ska Country ;IßA Contractor POI start ¡~'Ioo ¡~¡~ 00 II I~~ I_ ~il ~~~;~ , .. " ~ ¡;~, .. , " . -:' : ~. <, ' .:,<:;,~ W·"" ~~.~ , .. , ' Note$ \~ªtterson Current Activity [I~OH wi pressure gauges Daily Total (s) $3',700'.00": ,~weIlTotal(S) I 1$33,742:00: ACCident(YIn) End i~¡~ 00 :1\200 124hrForeclstll,mut well in 1 No 1 Last Safety Meeting Date I:, .., .. Duration Activity .; ~ . ~ -~~ ~.' '..:-..1 :,~,IRU Patterson and boom truck from Bering #3. ÞOOH wi pressure gauges and collar stops from 2140. Max pressure ~ 3218 and falls to 1:149 psi and falling @ 2.8 psi per day. BHT @ 67 degrees F. Perfs @ 2212-2220. IIPMO Patterson. "í'YvIFN. ¡!J¡f~ ~,~~¡i :~:~~ H~M1 - .; ....< , - -t'. . " :, .'oJ. ¡..r'. ,:....': , . COST ESTIMATE Wire line work SUPERVISION MiSe $1,600.00 $600.00 $1,500.00 TOTAL $3,700.00 ~.. .' Summary IPoOH wi gauges and SWIFN. Vet 1.0 ]t·1/8-28-99 Ver 1.0 jjl·1I8·28-99 __ ".__~._'._, _.'0'_. ,______ _____..._._ ___________ ..,_.o,.__._h__ _. ~. _,_.___ ,_ _." __4_._ _"". __~._ .,.__ -...-.-.- -'--'- ~--- -- -". . .-".-..- .~---~_.. ..-..- "., _ ,...~___....... .". ......_.. h.___.___..____ _..__ _.__.. ___..'_~_'__ __ _. .U ._..~__._~~_._. __, _......._. _""_ _ _. , "..'. _._. Summary .".~... ..~- -~ ..__._._--~-~--_.._._.._._---_._.-,_._._----- ---"--- "_--...~._",' _.. -. -~ "', --~.þ.' . __._.__..~____._____ _._.,._.__,._.. _ ... __.___"__"___"'_.'_ "_"_'_'_.._____._._..._" '__' _._ .~...__ h _ _, _. __n ._._'. ___0·'_,_, _. ".._. Notes ,-_...- ."-'.--..-.--'..- ..-....... ~_..._..~_..'-,-_.,,----~_. -...-. - .-. ~.., ,.---- .. ._-~ . -.-.- --. .~".'-'_..~. .- ..._....... .--.-.- . .___ .., .. _ ··J~~$~6-Õ-6.ÖO=~.~__.-_~·~.~:.~_··_·.:.=_=-:~_~_:_:~-.~~~.=~-~....~.~_. . ..~._.-~'.:.~_._... .~.--.._--~~-.--~,_.. .- - ,. -.. ...~. ..... - .......~....,.._._....,. --.,. TOTAL . n .,." __oM' ._.. ........._n__._.._ __.__.__ . ......__,_ _..'~__ ...' _....._h....__,_.,.__...._._...___..... ..._...__._._. ~... ..-"'-.' -..... .. -. - ".~ ....- ,.-. -. - .,~. _.-._'"~-''-''' ...-. COST ESTIMATE ... .... . ... ~¡~;..=======:-==:~~~~:=:===:.=--=====-==:.====.::...=-=::::..::==.===. .... .... ..~~. ì!f~~;~~~~~ã'~~~~··~···~:··-$!Il·..~~~~..~~.=:~~::_·.._~.:.~~_:._~~=.~~ _..- "-,"'-"-."-" . . ...........'.... ..~, .., ·.r. ... .. _. ........ - _._- . .."..." -.--...--............ .' _.~'.'.~ ,.."........ -'... ...... ""....---,,,...........--.- '......"."..... ......' "'-,. .,.., ..".,-~.- ......-.....-........--- .' ...-....-.. . ._~_.._~..,... ,.....-.." -.."".....,.-.....-..,..-..,.....--....... ......'...._.. "._,.-"...., -..,...,....,..................-..-. ........ .......-.., .,. "...~'..,.."",...~ ,~",. .... '-',.-''''''' .,.. .....'. . ......."..~ -.... .'.' .". .. .. _......__ ....'._. '. _.' ."".'..,.'._.... .....".' ..~_'"_.._._....._" ....._....... "'"_._._~_._.......__._....._...._..._.~_'...__".....______._._...,.. ...... ._,.. ............_,......'.'..... ....~..._...__... . "'··'__··'_'·_"'~·"'~~'~_"_"L -".~'~,_.._."~.,,..,. ,.... --'-' JJ 00_......... JJ~º.... _. Q&..._... ..__. . M!B.~. .~.9.~~~~9.n..:...B.~...~Y'{.~.....__....._.______._________,,_____...._______._____...___.__....____..._____..__._____ .1.1~_º____.. ~.ºQ._..t§.... .... ........ ,º.~.~p. P..ª!LªQiq _ª9r-º_s~_Þ.t~.P~..Œ~..@.~~j.~'.~__Rº...P_.~!te!§~_~.~__....._.....______.._ ._...._......___..._ _...._.___._.._.. ._._ _. ......_ 1300 1400 J..__. ... ... ._..._.F.~~gt~~~~~i.~~19t~..~!ª.Q~_.1.. (?_?1?~.~~.º..~~~J_??:~.1_??J.·...~§..!.~_.~.?_~~~..~i..~L~!~~~.@..?~~~~.___..u .... .__ ..____...." ....._........ ..... ...._......_..... E~_~p~.ª..?~º.J~~..?_º!4~. º~~~~.~ª~,~.:.....I.§.u:.@ _1 ~.~§.:.._ê~~..!~.ª~~E.E~P.~Œ..f.~r. !T1~~~ .~.~..!.ªl.l~.__._....__..".. _....... --...... ..- ......... -" .... . .... ~!ª~.9.r.ª91~.~!..~_1.:..~~...e~!!~_._..........._..___.__._....__......._.__...._._.__..___...__._..._...___.._._........._...._. ....... ..... \^.{ª.!~h -'~ª.~~ff.f()! J?Mi~ut~~._?.~J~.......J4.ª~...P.~j;..J_º_~iQ..... ~~~Z.P~j;...~.?_f!!!.~.. J ~º?P~!. .. .~.~.pat!~r.~gD..:...ª~!..yy!3.~.~-º.~9.: .... T.~.~~pJ~l1~.. ~?ºº2~L.f~_r!~~.?!~..1.~!.~~.1_~?ª _ªn.9.~..9.?~.-1_.~~!.:_.....__ ........._.. 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" AIŒ19.sJ...~.~~~~.~~~. 9.~~.~~.~~.?.pp.g_..~.~..']~..~.!LJ:!.ess,~.r.~...þ.~9.~~_Þ-?p_k on .9Y~~..~~~_~.:...§.!ªŒ~.~...~.~~9.. .~9..~.i~. ......._. ~µ_...P.9!t~.r.~2n.:._...ª~t..\.Y~.~. .1~..1.Q::.I~.~!..pJ_~.J~. ~.§QQE~l-E~.£f~?..!~..1.ª?.ª.::!ª§.?...?.~..~J.ª~_Q~J.ª~.1:.......__....... .._._. .P.~~.P..þ.~.II_ ~..ci~.J~Jª~º: ... .._........_......__.._.._._._.._._.....____..____.__....._..............__ ._.................._.... .,. .... .. ..' . ¡:;!.9~!~~~.~.!L~.~.!.?t~_~.!~g.~,}j~. ª.5.ª=.~ª~~..9.~~J.ª.~Q.:.1_ª~.:J1..~~!~..__.~Qº.p~L~Lþ..~~..?.~_@}g~.1.:.. _ ...._........"'........ ... ., ..... P.~Ð~P.ªº~ª-ºº. .I~~.~-º/ 4º..º~9.!.Y.?:.~.ª~g:..!.ª!?_.@.J.~~3 ~_~~.~_!~~.?!~~.!.~J?.s>L~}~~.r_~g~~g.~_~~~.!~ .... .._. ........ _ ...._....... ... ....._ .._f.!ª~..9.Eª-9J.~~t.:...!:..1~p~~ª_............ ., ..... ......__...._._.._.__..._......_.....__.. ___......_._..._..__........_ .............._....._................ ... '" _ ._ ............,.....................__....... ...... 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'-.,", .~.....-...".'........,,',.._'.. 2 1630 1430 Activity End Duration Sta rt 124hr Forecast I Production Test Well Accldent (yln) I No Last Safety Meeting Date I EWS Current Activity Fracture Stimulate Daily Total ($) $225,600.00 Well Total ($) I POI I Contractor Daily Completion Report lEnd 16/4/03 supervisor IShane Gagliardi IAPI 150-009-20026-00 operator Evergreen Resources Alaska Field Pioneer Rng 3W Icounty Matanuska,Susitna state IAlaska Country USA NO 11 TWP 17N I Report No I Begin 16/4/03 Well ID,L. SMITH Qtr/Qtr NE/NE Isec 11 \ , II Ver 1.0 ÜI·1I8·28-99 ~~...'.~._.._.._.'~_ _._"__.________._._____....__" __ __.__. -.-----.-.,.--.-.," __" _, ____0_..·'.__ ".,.__."__._____ . --~ .~,..- .__. __. _" .__ .' _ ..ow._ ...... ~_,.._ ..~ ~_ _ _". _._. _ _. ._,.. _ ._ ..,_, ___ .. _ __'. __'_". ,,____ ~ ._ _ " .~. Summary I . __"d'. "-' -" - -~'- Notes ._"._ ,____...,_. .. _.. 0.'-_- . ~.__~___.._._.. __d._._ -, .--.... -. ...- . 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YY.Rptg.A?9º_.p~J.:-...~~rtQ.~~!~,,1.!..~.~.:JZ~_º...ª~q..E.ºª:!?!?~.P..~r.Dp'.þ'ª~I.ª~i9 .@..E.?ª~..o....._.....__ .... 1000 1 .F..~~eture ~t!~~~~~..~~.~9~_.~.(1.???:J.!.~q..~.~L1.!q~:,,1.~1.~).~. .A~TP. :..1.?ºº.E~.L~(Þ-~~~!_'~.Jª_8J~.__.....__ ._..... . .....,. ..'''-''.-..._ _~~_~E_~!.~º_IÞ..~...?g/~º..º~~~~~9.~.q: )~!.~..@..~~ª.:.,,_~..~.~!~~.?.!~!.!~.P9.Œ.fQ~D]g!~..g~~9.!I.~ ..".._..._ . ....... ....._..._...... .f !~.~JJ..r.~9l~~~_:J:.º..e~~~...____._....._.__...._._._....."_' _..._..._____._......_._.._____....,,__.__.._.......____ ...................._.._ _........ .._. ..w~~~nl~~~.. .9..~.fo..r.)?_ ~inu.~.~~.. ?_.~~~.__..~.?J_E~i;.J..º ~!.~..~º~.E~i;._~.~.f.T1_i~_.ª.~ª. e~i..... ... _._. ...... ..... ........._ . ..._ 1200 2 ~º~9~Y.Yê..~~.g..~.~!~~E~~~.!9.. §!to'!!I..~~r.g_~.:._. ............___,,__._._______..__.............._......... ..._...... ....... ......._.. ..... _........_.._ 1000 0700 0730 0900 Activity Duration End Start 24hr Forecast I Production Test Well AcCldent (yln) I No Last Safety Meeting Date I Fracture Stimulate Well Total (S) I EWS Current Activity Daily Total (S) $11,600.00 Contractor po# I Daily Completion Report lEnd 16/5/03 supervlsor Shane Gagliardi IAPI 150-009-20026-00 operator Evergreen Resources Alaska Field Pioneer Rng 13W Icounty !Matanuska,Susitna Istate IAlaska Country USA INO 11 ITWP 117N I Report No I I Begin 16/5/03 Well ID,L. SMITH atr/atr INE/NE Isec 11 ) '.! ' IReport No 16 IBegin 106/07/03 Well I D. L. Smith Qtr/Qtr I NE/NE Isec Contractor po# I Start 0800 0900 '~"~-""-'~-'-""~""-""~' ".'.--,~.,- .~. 0900 1000 1000 1130 1130 1400 1400 1500 1630 1800 EWS # 9619 Dally Total ($) End Duration ,~ Daily Completion Report lEnd 16/7/2003 supervlsor Trout 1 . -.' ".~" ..,,~,. ..,.-..,.... ,....- '.-..........",. "'" ''''... 1 11/2 21/2 ,,~..,,- ,~"-'. ."....~~'" 1500 1630 1 11/2 . -----.-.... ,..~-,~-".."" .-"-'." 1800 1900 11/2 1 NO 11 IAPI 150-009-20026-00 /1 TWP I 18 Rng I 3 I County Current Activity Prep to c/o to PBTD $27,800.00 Well Total ($) I I $61,542.00 operator Evergreen Resources Alaska Field Pioneer state IAlaSka Country IUSA 124hr Forecast I Prep to test for production ¡No Last Safety Meeting Date ......§P~~~9 p'1ª~tiº...~pgt.in....~9.~!E~~Ð~~__......_.........__-..... .._,....._...._._ ._...._. __..____........ ........._. _"__'_''''__''. ._._.....____. ....._..__.. _................. ~~Q.it2~ .çP..~.Qi!~.f~ª~tuTt~R §.t~g!l1 q.~!.g...~?~_-ªlÇp_.1~Q .p_~L.__.__._...._...._._...__.__ ..__......_._. ,..... .........u..._._.... .. _. _..__..._._......_..... Flowed..~:.~I..~~..pi.t..~.~~le ~n~!~I.li~g~~~:......_...._... ...... .... _ '."_"_"'_"'_ ...._ ..._.._........_.........._. .""".' .."._........_._...____.__. ...._. ~~..!:.~i:y!n.~_.h"e_~.~.Lo.!_~~~:..~t!~p._i~.~~!:..'!!!..~?!~·..t~.~!..~~~i.n.~.~:I~..~o_P!!:.!':9..ª.:~ T~~...@.~~::~~..~~~. .~n.it..~..~~~ !?.,.........__...__...._. annulus & reverse circulate 86' of sand of sand off WRP 1820', Unseated WRP. _...~,-..' ... "....""..~-,.. _._'.'-,-_.-....'.._...--~,_..,,--,. ,. !.~~~/ t~_g..~.. p'1~~: ~~_.p~~_9.:.... ..........__......._...._.._...__.._...._._.__........_... _..._....._.....____._.......__.._.__..... . .__...._.......... ..... PU retri:~~.~~_. ~e.~~ ..!?r.~.~~'. TI~. ,~!l.F~~!b.9. .t?_!.g?J~..~~?~.::.~~. ~n.~.~..~o..?.~_r:~~.r:.e. _~~~~!~.t~. ~8~.!:>!..~~~9.~~.~~.~. ~ ~~~~:'... .__......._..._..._. 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"...... .'·_u.....,',..., ...",.'.,.'.~~.,,,_.,....,,_.......'.. .., .,..·'."~..T'......".,.... .... Notes Summary . . . ,...,....,",.,',."....'~_,~_.~~.. ".' ."..' "....,..._. .,...~,,. '''''.'_ ...." _~_,._",.._...~" ...'..._..w__.....~_",__·. . ~."__.....,,'._.........,.,.~ ..,...~._......,,,. _... ...~ .'_....._,-,....."...._"....'-'..,..._...._~-_.~, -,.._- ,..~..'.,.~_...,-..,... _...~P.'.._,,~~.· ,.'_....._". .._._ '..'_"_'_. ...,...."__~'.....'_".". '''",'''__'' ,. ., .......... ........"'...., ,.....' "", ,"........".', ....,." ~.,"h·",~~" _. . ..__......___..., .... ._...._, ____.. _._.. .~"._ _._.....,'.. ~...,. .....,' ....._..... _. .~.... ,., ",...... _". ... .... ._., .~.~......._._.._._..__.~ ."_,~""",,w ." . ..~~,"..,,_... . .......,-,". ,..-.,.. ...-.. ."..._...""..,,,...,..,....._.."~-,~.-_..-'~_..._.,,,.._.,,~, -".~_...~."',._-.-,'"...,.....,_..._._,.~_.'. '"... ..~.._-'..,,"._....".'...... .. ~.._. '..... ~.."... ~_,~ ..~. ' _~..'"'" .' ."""" _,~._.'._....,_ ..""_.' "".,_ .... ..~.,..~...., ~.._. _... "....__." _ .."~. ._, ,_".~,_,,,.,..._,,_,, .._n...·"",~··,,,,_·u.' .".... .. .....".~".._., ~..".. ,-............... .''''. .......,...,. '. .., .. '''-''''~-' . ... çº~T..~.STIMA TE; R' ...!9... _..... .-. S. ~E~!y'.i~.i9.~ Western Misc. ",'..-- --.....",',-.," .. "'-'.,., .__.."...~-,_...._-.._.._.,._~ _.-._,~_._.__.._.__.__.... "-"'~ . ."..... .."..... --, ....-.,,~..-.....~-.....,,-'...,,-,_. ".-'~- _...~,.._._... ..,·'.___....._..._n...'....... . . ~,,,.- '., ........ "'_.~..... .." '~"'..'. ..,~. - -~--~-'" ""~"'''''''''''''-''.'' 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"-~.._."-,,.,,, ,_.~.'., -","" . ,.......... ~ ... _.., -...., - ,., ..'..~-.--.- ---. ,.~ -. .~..._.._...'.,...-.__.. ... ._-~_... .. .. .'...-..-..".... ,-- .. . . ._-_._-,_.._'-----_.._-..-_..-._.~..'_.._~. .--.. ,-""-,,,~,-_.._, _.~~._.- .-_.. .....--., ---.--.-- ......-..--.--.. - ...-._..,-~--,.._.~..._...,~--- ",-- _ ..._ ,.__.__...._.._~___.._._.._..__._."_._._____..._____._....__~__.__.....___..._. ...._..._'. ~..___._ _..,__. .~,_... ....... _._~"" ._. _..w__ ..... _.....".~_.,_ ,____..... _. .__~__.·_..__.h.____".~__._..._____. ._._______...._ _ _ ._,.~__...___ __.. __ ..._ ____ .'_ _, __ _._ ._._ _.u' ...__ ___.. ___. ... .. ~ . '. ... ...... ...- ....- - .--........ . . .....,.--. -..--..-.-.-..--.---...- .. -"..~ ..- "-' ~ -,......' . .-. -'....-.-.--.-- -'_.. ---- ~ (ør Vef 1.0 Üt.1/8·28-99 Report No 16 Begln 105/27/03 Well ¡~ L. Smith Qtr/Qtr Ijm~/N E I Sec Contractor PO# Start )~;i~30 t:~:230 Notes I ' Summary ~ªtterson Daily Total (S) End Duration 11 INO I',m TWP 117 Current Activity $3,834.00 ') Daily Completion Report I End 15/27/2003 IAPI 1:50-009-20026-00 Rng 3 i~(epare to Perf. Well Tota/IS) I I· I County operator IMat-Su supervlsor ITrout Èvergreen Resources Alaska Field þ¡ I Slate IAlaska Country I 124hr ForecastI'¡:¡:¡iii Prepare to Frac. I Last Safety Meeting Date Activity g,~ boom truck. RU Patterson & perforate under lubracator 2125' to 2132' w/4 HPF using 4" HSC wI DP cha~ well. Clean up location. RD & MO. COST ESTIMATE; Patterson Sùpervision $37,576.00 ACCident (y/n) $3,234.00 $100.00 $500.00 $3,834.00 VÐl1.0 til·I/8-28-99 \ , I '. t ' Attachment for Block 25 DEPTH INTERVAL (MD) 2125-2220 1953-1978 1840-1862 1708-1760 Form 10-407 Revised 4/2003 ) ) AMOUNT AND KIND OF MATERIAL USED Borate Cross Link Gel Frac w/68,540 Ibs 20/40 Ottawa Borate Cross Link Gel Frac w/65,820 Ibs 20/40 Ottawa Borate Cross Link Gel Frac w/80,540 Ibs 20/40 Ottawa Borate Cross Link Gel Frac w/ 66,910 Ibs 20/40 Ottawa ,-.--- -- - -- -- -------- --_.- - ------------ PRESSURE AND TEMPERATURE VS DELTA TIME Company: Evergreen Resources Alaska Corp Location: DL Smith #1 Date: 4/4/03 - 5/7/03 Serial# 9341 Max. Pressure: 3218.402 psig Max. Temperature: 67.117 F . , 70 3000-' .. .. .........:.... ..... .....: ........... ...:...... ..... ...:..............:... ..... ......:.......... ....:.............. -60 --- . . . . . . . -50 2000· . . . . . . . . . . . . . . : . . . . . . . . . . . . . . : . . . . . . . . . . . . . . ; . . . . . . . . . . . . . . : . . . . . . . . . . . . . . : . . . . . . . . . . . . . . : . . . . . . . . . . . . . . : . . . . . . . . . . . . . . w -. . . . . . . a::: => CI) CI) w a::: a. -~~ -40 1 000 _. . . . . . . . . . . . . . ; . . . . . . . . . . . . . . ; . . . . . . . . . . . . . . ; . . . . . . . . . . . . . . ; . . . . . . . . . . . . . . ; . . . . . . . . . . . . . . ; . . . . . . . . . . . . . . ; . . . . . . . . . . . . . . - o o I 100 200 I 300 400 500 DELTA TIME(HOURS) 600 -~: -30 700 20 800 ) ) Well DL Smith #1 Qtr/Qtr See Twp 17N Rng Current 50~09-20026-00 =\'=I~GI~== 1'1 API 1 3W Size Weight Grade Thread Depth County Matanuska,Susitna State Alaska Casing 8-518 23 J-55 ST&C 1038 Field Pioneer Unit Country USA Casing 5-112 17 J-55 LT&C 2497 GUKB 274/278 Tubing 2-718 6.4 J-55 8rd 2241 No. I Depth I Length I OD ID Description ~ ~ 1 2497 2 4.24 N/A Alpha Tools Midget 1110,000 psi CIBP 2 2260 11.51 2.88 N/A 30N045 pump wI torquestopper No-turn. 3 2212 8 N/A N/A Perfs from 2212 - 2220, 4 spf and 23 gram 4 2125 7 N/A N/A Perfs from 2125 - 2132, 4 spf and 23 gram 5 1974 4 N/A N/A Perfs from 1974 - 1978, 4 spf and 23 gram 6 1953 4 N/A N/A Perfs from 1953 - 1957, 4 spf and 23 gram 7 1858 4 N/A N/A Perfs from 1858 - 1862, 4 spf and 23 gram 8 1840 4 N/A N/A Perfs from 1840 - 1844, 4 spf and 23 gram 9 1756 4 N/A N/A Perfs from 1756 - 1760, 4 spf and 23 gram 10 1708 4 N/A N/A Perfs from 1708 - 1712, 4 spf and 23 gram PBTD 2487 10 9 8 7 6 5 4 3 2 Modified by STG 7/3/03 ) ) Corrected State Plane 9-9-03 BFL _.____.____._._____._._...______.___._.____.....__u._____.._.___________.._~____....._.,. ._,._.. .,_, .._.."_____~____,_ .____...______..___4__.___.. ._..___._.________.., __.__..__.__.____þ"._._..._.. __,,__...._....._._._..'.__,.. ,_.. ._.._. ~.,'_.,',_.,__."....,...___...__._......."..._ .".___'_.__".__'.'__..._'__'...__.'___..__.___.__". .,_,_,.., .__.._ .. ....._.. .... ".....__.._ ._.__...__. __.._......_.__.'..___..._. . .... ..,~.,. .n._..'...._····._·,.·__..._...·..__·_.. __.____.._.,._.____..., ...,,_ PTD NAME ASP27Z4E ASP27Z4N 2021780 BARANOF #4 585062.93 2782923.45 ..._,._,___.,.._..__...~...,.__.~'.__.,.,.._,._,__"."..__....___...."_'.__ ___._.________,,_..~.~_...___~._..______._.._........ ......~.. _ ._....... ...... ·...·..._.__....·.··.·R..~._~. ....._,_. _ ... ... ..~.. ." ._._._....... _.. _.. "._...... ....,..".,. ...."...._."..-..... ,....._.,~~..,_.........~............_.__ 2021770 BERING #3 585004.70 2783942.33 ___...~"_.___ ....._._.~............._.,. ",."_", ~.._....._..__"'_..,........ _ ...,..........._m___.__."...____~___._. _._.un_.'._.._.~..._._".... ....._.. ._.._.... _ . ... ",. _. ._.__.._._.._....._.. ... ..."...'""' _~._......_.._..._._.._. ~...... _..,...___.,.._ __. ...... _._..~........."_ __....__..,._ ,..... _.. ...__ 2021810 COOK #1 584593.05 2783408.27 ___._,....._..~____........_~.... . . . __'.,,".._... ....,..~... .. .....,..,_.,,__._ ._. ..._..,..... ._,__.__...._~_".__....,._.. ._.....__.__'·......4_ ._. _..... .,", ._._ ",. . ..__.,_.._,. ....__._.._,_.__. .__" ,__.~,,_.__~._....._.,._..__._._.. ___ __.".___...__._, _._. g..___..._._, ._....,..__._.._....._ ....__...._. ._. ".. 2021820 ROBERT SMITH #3 542887.46 2774899.30 .--.---.-._..-".---...-.--,,_._...--.~.--.--,...._.~-~-~.._..__._._------_.__..._-_..,..".__...-...._._..._~. ..-.,.__._....__...~_....._...._._.- .-..---.-...,--....-..-..--...---........ . _.,._-,_..-----,--_._-_._~-_.._.._-_..__._--_.._- 2021840 D.L.SMITH #1 543786.36 2774923.09 _._.~~_._-_..__..--_. _..~._.... _..~_....__.~--,'-"_._"...,-........_._"._._-_.--_...__.-.~-~-.__._..- ....-...... .-.-.... -..,..--.... .-'-"., ...,..... .---,,-....---.....-, "~_..' .---- -"--.---.-'-'--'-' ..--_...__._...._._---.__.._~.- -----.---., --.-.-.---- 2021830 GARY & JOANN STROMBERG #2 544423.27 2775528.70 ..__._.__.__.....__~.._.._... ..._..~.____"....'".____..__. .~___.._.__ ______...._~.._.._....,.~. _.. ~""R_" .... .....~.....~........_ '_"_.__.'_.,. __..... _ . ,. ,,_..._...._......_.. ,~_...._.......". _._~.,. .,_..~.....~~._.._.~.~__ _,,__...____. ..._.~__..___,._._... 2021790 LOWELL #2 584152.01 2783381.99 ..-.....-..,-.....--. .......-.-..-.., .-........--......,.,,-...,..... .-.....-....-....... ..--...,.-,-..-.....-,..... '-'---'-'-"-~""-'-".' ... ...-.. ..... -- .-....,..,.. --.....-.-.."... .---.--.-.".......,...-....,.--..."...".....-..-. - .~.._..-._.. ,.-. .-.....--..--....-.-...--.,.... ..-..----.-.-..--.------.-..- 2021810 CORN HUSKER #4 543355.96 2774054.90 WelLLocation_Evergreen Pared.xls =\'=I~GI~==I~ r RESOURCES (ALASKA) CORP. A Subsidiary of Evergreen Resources, Inc. J 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 shaneg@evergreengas.colll. Sincerely, ß~ Shane GagliaJi" Petroleum Engineer r=~ ~ ,r, r"'~ '.' '\. (" ~''''''' "~"" f";:, t:. ïi...,... t:, ~;;f t:~ L) JUL 0 9 2003 ÞJ2sb?~ o¡¡ D r: :~ n ~; r S G r~"~: , A n ~~ h Gt E~·G~; 1075 Check Street, Suite 202 · Wasilla AK 99654 PO. Box 871845 . Wasilla, 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 D Suspend D Alter Casing D Repair Well [8'J 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): 278 ft KB (4' AGL) \¡-Júl\ 7/ /01 ZOO'~ ðJV'S 7/ /CJ/3 Operation Shutdown D Perforate D Variance D Annular Disposal D Plug Perforations D Stimulate D Time Extension D Other D Perforate New Pool D Re-enter Suspended Well D 4. Current Well Class: 5. Permit to Drill Number: /" Development D Exploratory [8'J 202-184 Stratigraphic D Service D 6. API Number: /' 50- 009-20026-00 9. Well Name and Number: DL Smith'ij.v 10. Field/Pool(s): Pioneer Unit (610036) 8. Property Designation: Private PRESENT WELL CONDITION SUMMARY I Total Depth TVD (ft): I Effective Depth MD (ft): I Effective Depth TVD(ft): I Plugs (measured): 2510' TVD 2488' MD 2488' MD CIBP @ 2497 Length Size MD TVD Burst N/A N/A N/A N/A 316 12-3/4 320 320 1034 8-~8 1038 1038 WA WA WA WA 2493 5-1/2 2497 2497 N/A N/A N/A N/A Perforation Depth MD (ft): I Perforation Depth TVD (ft): I Tubing Size: Tubing Gràtre.: 1708-2220 1708-2220 2-7/86.4 ppf J-55 Packers and SSSV MD (ft): Packers and SSSV Type: 11. Total Depth MD (ft): 2510' MD Casing Structural Conductor Surface Intermediate Production Liner N/A N/A 2950 N/A 5320 N/A N/A N/A 13. Well Class after proposed work: Exploratory [8'J Development D 12. Attachments: Description Summary of Proposal [8'J Detailed Operations Program [8'J BOP Sketch D 14. Estimated Date for Commencing Operations: 18 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 D Gas [8'J Plugged D WAG D GINJ D WINJ D Contact Shane Gagliardi p~inted Name ~e Gagjd('f} Signature ..Me ~)....~ Title Petroleum Enqineer Phone 907-355-8569 Commission Use Only Date 7/3/03 Junk (measured): N/A Collapse N/A N/A 1370 N/A 4910 N/A Tubing MD (ft): 2241' Service D Abandoned D WDSPL D Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 30'1- I t'- Plug Integrity D BOP Test ~ Location Clearance D Mechanical Integrity Test D F,~~ r- ""'"'\\ !""'"'' ',' "~I . 'rr' ·-r·e-S t-E 0 ¡) E ~ ¡ 000 (J i / . \, k:, (","7 t: !¡ \J :1:::::, Other: (J.,ý, .,~. r\f\-L 2. S. 2.. QS L k)) _. 1.Lu V\.4L-1 - B 0 I) ,= 'I ~ II ~ £A.I ~ V\..1. (' ~ (; ~ t\fpYO\te-t1dJL 0 9 2003 Subsequent Form Required: 40 q A¡a3[~;,::) 0¡1 [i,. Approved by: ~~ ~W COMMISSIONER Form 10-403 Revised 2/2003) BY ORDER OF THE COMMISSION fO)p¡f':-;;-r f··~: ¡,-,'~ " IN.DL}Lr\:;U~. l.::')¡ l'- Jt ff: 'f ,; ?Çl;~,'2¡ OR\G\NAL C Dn'-~~ þ~ ~~ .=: :'""í ~~ ~ S g ~:~ Date 7/? /,n ~mit ~~n&te ') ) Pump Change Procedure Pioneer Unit: DL Smith #1 API: 50-009-20026-00 Section 1 Township 17 North Range 3 West Matanuska Susitna Borough, Alaska Elevations: GL: 274 ft KB: 278 ft (4 ft AGL) Objective: Change pump and place on production test. History: This well was initially drilled October 2002. A injection/fall off test was conducted from 4/7/03 - 5/8/03 on the bottom most set of perforations (2212- 2220). The has been fracture stimulated and completed w/ 40N045 pump. Preparation: "7 q 3·" /231 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: None. 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 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 3928 4256 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 Change Procedure 1. MIRU EWS Rig 9619 and EWS cement unit #402. /' a. Install and test BOP (pipe and blind rams). 2. POOH wI 2241' 718 rods. And 40N045 rotor. 3. Tag PBTD @ 2487'. Clean sand if necessary. 4. POOH wI 2241' 2-7/8 tbg and 40N045 stator. 5. TIHI 2260' 2-7/8 tbg, seat nipple and tag bar. 6. TIH wI 2260' 7/8 rods wI 40N006 pump. 7. Seat pump in seat nipple wI 500 psi using EWS cmt unit 402. 8. Start pump @ 150 RPM. Place on production test. ./' ) Well DL Smith #1 QtrlQtr See Twp 17N Rng Current 50~09-20026~O =\I=I~GI~== 1'1 API 1 3W Size Weight Grade Thread Depth County Matanuska,Susitna State Alaska Casing 8-5/8 23 J-55 ST&C 1038 Field Pioneer Unit Country USA Casing 5-1/2 17 J-55 LT&C 2497 G LlKB 274/278 Tubing 2-7/8 6.4 J-55 8rd 2241 No. I Depth I Length I OD ID Description ~ .... 1 2497 2 4.24 N/A Alpha Tools Midget 1110,000 psi CIBP 2 2260 11.51 2.88 N/A 40N045 pump wI torquestopper No-turn. 3 2212 8 N/A N/A Perfs from 2212 - 2220, 4 spf and 23 gram 4 2125 7 N/A N/A Perfs from 2125 - 2132, 4 spf and 23 gram 5 1974 4 N/A N/A Perfs from 1974 - 1978, 4 spf and 23 gram 6 1953 4 N/A N/A Perfs from 1953 - 1957, 4 spf and 23 gram 7 1858 4 N/A N/A Perfs from 1858 - 1862, 4 spf and 23 gram 8 1840 4 N/A N/A Perfs from 1840 - 1844, 4 spf and 23 gram 9 1756 4 N/A N/A Perfs from 1756 - 1760, 4 spf and 23 gram 10 1708 4 N/A N/A Perfs from 1708 - 1712, 4 spf and 23 gram IE 10 IE 9 8 7 6 5 4 3 2 Modified by STG 7/3/03 Proposed Well DL Smith #1 API 50~09-20026-00 =\'=I~GI~== 1'1 Qtr/Qtr See 1 Twp 17N Rng 3W Size Weight Grade Thread Depth County Matanuska,Susitna State Alaska Casing 8-5/8 23 J-55 ST&C 1038 Field Pioneer Unit Country USA Casing 5-1/2 17 J-55 LT&C 2497 GUKB 274/278 Tubing 2-7/8 6.4 J-55 8rd 2241 No. I Depth I Length I OD 10 Description ..411I ~ 1 2497 2 4.24 N/A Alpha Tools Midget 1110,000 psi CIBP 2 2260 11.51 2.88 N/A 40N024 pump wI torquestopper No-turn. 3 2212 8 N/A N/A Perfs from 2212 - 2220, 4 spf and 23 gram 4 2125 7 N/A N/A Perfs from 2125 - 2132, 4 spf and 23 gram 5 1974 4 N/A N/A Perfs from 1974 - 1978, 4 spf and 23 gram 6 1953 4 N/A N/A Perfs from 1953 - 1957, 4 spf and 23 gram 7 1858 4 N/A N/A Perfs from 1858 - 1862, 4 spf and 23 gram 8 1840 4 N/A N/A Perfs from 1840 - 1844, 4 spf and 23 gram 9 1756 4 N/A N/A Perfs from 1756 - 1760, 4 spf and 23 gram 10 1708 4 N/A N/A Perfs from 1708 - 1712,4 spf and 23 gram IE 10 c: 1Ë7 6 5 4 3 2 ) ) 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 MC 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 MC 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"~ JUL 0 H r¡¡:;'1 fd{,~ i.::~.: 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 } BOP DETAIL FOR CLEAN-OUT OPERA TIONS (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 II 7 Pipe Rams Ib Ib ~ Q) ::J c: ~ ql ql 6 I Blind Rams 1 2 5 To pummDC Well Head 3 4 =n=:1O] 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 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. F~.. E: C~ f:~~ \,/ r:'-·:, f" Street: 1075 Check Street, Suite 202 Wasilla, AK 99654 Mailing: P.O. Box 871845 Wasilla AK' 9967"7 . ",,", Tel 907-357-8130 Fax 907-357-8340 JUL 0 G '"'nW1 www.EvergreenGas.com ú 1.·'1 ' c: :; ) } ") =\'=llGl~==I',1 Illit::!¡:m; ro\:<:¡;:~1 ~i!ií..¡(l'$KA'1 íl::'¡;jo¡r,¡ :to .¡!¡'¡:¡¡¡~l!iilli¡:!IWÎ¡i~ i::1!ElHW1!i:m: mm¡,:ÚW!¡¡¡!!i, ¡¡!Ht. March 23, 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: 10-403 - Fracture Stimulation Evergreen DL Smith No 1 / Pioneer Unit API: 50-009-20026-00 Permit: 202-184 NE/NE of Section 1 Twn 17 North Rng 3 West Matanuska Susitna Borough, Alaska Dear Commissioners Palin, Ruederich and Seamount, Evergreen Resources Alaska Corporation submits the following 10-403 to hydrauliçallYj fracture stimulate the subject well. We plan to commence work on this well 0,"'3-1-~.9I/ 03. Attached is the 1 0-403, a summary of operations, a blowout prevention s'kètëñ used during this program, a procedure and a wellbore diagram. Thank you for your help. Please contact me if you have any questions. Sincerely, Attachments r:::,_¡:~'~;~,.'} .-~~>~-'~:,'~:" r-'-:-;~:'~ ,,,- .~ ,,) ,"', "j \\l,~\ F: 2:; 5t d.' _...... to., t~'., ... ('i~'"\~'':''' :r' ;.,\",..",~~8r! AI~i",,~,~. '" . , " ' ~.~., \ \.~,. ~ '-..1'1I ~~;~:; Street: 1075 Check Street, Suite 202 Wasilla. AK 99654 Mailing: PO, Box 871845 Was ilia AK 99677 Te/907-357-8130 Fax 907-357-8340 www.EvergreenGas.com ORIGINAL .. ) ) J;J6A- 3i zsi ¿dO!; l}ç:f 03 )¿s;b-'3 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT FOR SUNDRY APPROVALS 1. Type of Request Abandon [] Suspend n Operation Shutdown [] Re-enter suspended well [] After Casing [] Repair Well 0 Plugging 0 Time extension 0 Stimulate Change Approved Program [J Pull Tubing CJ Variance [] Perforate [] Other 2. Name of Operator Evergreen Resources Alaska 5. Type of Well Development n 6. Datum elevation (DF or KB): Exploratory ŒI 278 ft KB (4 ft AGL) 3. Address: P.O. Box 871845 Stratigraphic 0 7. Unit or Property Name: Wasilla, AK 99687 Service 0 Pioneer Unit 4. Location of well at surface: NE/NE of Sec 1 Twn 17 North Rng 3 West, Seward Meridian 8. Well number: 3293' FNL & 293' FWL OF SEC DL Smith No 1 At top of productive interval: Same 9. Permit num~ 202-184 At effective depth: Same 10. API Number: 50-009-20026-00 Total depth: Same 11. Field and Pool: Pioneer ŒI ,...., 12. Present well condition summary Total depth: Effective depth: Measured true vertical Measured true vertical Length Size 2510 feet feet feet feet Plugs (measured) none 2510 Junk (measured) none Casing: Structural Conductor Surface Intermediate Production Liner Perforation depth: Cemented Measured Depth True vertical depth 320' 1034' 12-3/4" 8-5/8" 70 sx on bot & 10 sx on top 433 sx 15.8 ppg Class G, Circ to Surface 324' 1038' 2492' 5-1/2" 410 sx 13.7 ppg Class G, TOC +/-100 ft / 2497' Measured 2,212' - 2,220',2,125' - 2,132',1,974' -1,978',1,953' -1,957'1,858' -1,862',1,840' -1,844',1,756' - 1,760,1,708' -1,712' True vertical 2,212' - 2,220' ,2,125' - 2,132',1,974' - 1,978',1,953' - 1,957'1,858' - 1,862',1,840' - 1,844',1,756' - 1,760,1,708' -1,712' Tubing (size, grade, and measured depth) +/-1650 ft KB with Progressing Cavity Pump on Bottom Packers and SSSV (type and measured depth) none 13. Attachments: Description Summary of Proposal ŒI Detailed Operations Program ŒI BOP Sketch ŒI 14. Estimated date for commencing operation 31-Mar-03 15. Status of well classification as: 16. If proposal was verbally approved Oile Gas lEI Suspended D Service fJ Name of approver Date Approved 17. I hereby certifY. that t~eJr~oing is true and correct to the best of my knowledge. Signed ~ø/ - - · Hie Alaska Projects Manager FOR COMMISSION USE ONLY Conditions of approval: Notify ComrJ1is~ion so representative may witness ) \1 .L . Approval No.3 D3 -é?'?7 F~~ UAI\<.. 1..S, l..-tS L"-J ct.vu!.. U A-IK. ZS.. t.'¡'1(~ ) Co\. t£,-r\.C\,.,\€.. ""e.n ~'Y'wtrol ~C.~P"'4Lt t'~ O-rprO~eA.. Plug integrity [J BOP test þ( Location clearance 0 Mechanical integrity test [J Subsequent form required 10- 407 Approved by order of the Commission ~ ~ ~ Commissioner Date ¿¿~~ù-.? Form 10-403 Rev 06/15/88 ....." ,SUBM,IT lNTRIPLlCATE Date March 23, 2003 rT"":'J" 'L ~7B!]MS 8FL nC?'G'NA~ · 26 1;,.;'0111.' , ) ) =\':I? :I~==I'~I I:~W ~lt:!1,I1:1'¡;;·I~ S ~ i!ilA.'!iiKJ¡':! ¡¡;;Öij~ 1:1. ¡ll:::ÎW:i!¡j¡¡!\mJ¡;'¡j;t 1::11¡1i¡Wl1m:ì', !!f¡!i¡:~!!Ji!¡jljij¡. ¡!'il:. Program Summary Pioneer Unit DL Smith No 1 API: 50-009-20026-00 Permit: 202-184 NE/NE of Section 1 Twn 17 North Rng 3 West Matanuska Susitna Borough, Alaska The subject well was spud on November 18, 2002 and the rig moved off on November 20, 2002. The well was drilled to 2510 ft KB and 5.50 inch casing was run to 2492 ft KB and cemented with 410 sx 13.7 ppg Class G sx of Class G Cement. Plug back total depth is 2394 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 & Fracture Treatment Stage Interval Formation Shots/ft Frac Description 1 2,212' - 2,220' Tyonek 4 120,000 Ibs 20/40 proppant 2,125' - 2,132' N2 Foam Fluid 1,974' - 1,978' 64,000 Ibs 20/40 proppant 2 1,953' - 1,957' Tyonek 4 N2 Foam Fluid 3 1,858' - 1,862' 64,000 Ibs 20/40 proppant 1,840' - 1,844' Tyonek 4 N2 Foam Fluid 4 1,756' -1,760 Tyonek 4 64,000 Ibs 20/40 proppant 1,708' - 1,712' N2 Foam Fluid This procedure also proposes drilling out roughly 90 feet of cement left in 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 AAC 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 AAC 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 TeI90i-357-8130 Fax 907-357-8340 www.EvergreenGas.com ) ) ::. i¡¡t::r - "I';'!D::::=ln,~m BÞU1''IL JIIØIIU f.:1~llIIIIUm Iß I:~,I!: !ii~Ii:t,lI:I<:lli ~l \ IU.¡/i'!i;KJI'J !t::,l)i~':I.. ¡I¡,i:¡ui;j!¡j¡j¡¡¡!!;( :;il·r.:lj[!\:i'Flh!¡¡i' mm;::Ii¡¡!:¡jlÌ¡!;. Wi!L 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 Demco 5-1/2 5,000 6 Frac Lines FMC or equivalent 4 3,000 Casing Frac BOPE Demco Frac Valve that screws directly into the 5-1/2" casing short thread & coupling collar. From this valve, 15,000 psi Jrac treating iron is attached. Integrity of the valve is tested before each fracture treatment to 4,000 psi. '/ BLOW OUT PREVENTION EQUIPMENT WIRELlNE 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 Demco 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 Demco Frac Valve is a spool. The spool provides access to the well case the well needs to be killed while logging. ~c 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 Was ilia AK 99677 Tel 907·357-8130 Fax 907-357-8340 www.EvergreenGas.com '-0 1 SM FRAG LINES 15 5 ('¡,Š: 1) :§ j :!~ 7 5 4 1, 3 Wellhead :2 Wireline BOPE ) ) :: \l: I~ '!I'~:::: 1:\1 !:~j:: IHHII:t,¡:;¡:; $ (i!I,L/I.1¡;K.iI,], It:;'t>j~ 1:1" ¡ll·i:flii:1ÜilJli:!IJi: m¡'j::I¡!¡i!iiimir:I:,!ih!;~::I£jFi¡lj;!;. ¡¡I!t), BOP DETAIL FOR CLEAN-OUT OPERA TIONS (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 wellbore. Here we propose using ;y~~~:'Si, ;h~1~6n~hiSB~:;c:~n~~"~hC:~_~~~/ To Pump 5 I r~lt~lT T I casing head which is also our spool in this Wellhead I,~".,' 0 an < operation. BOPE for Frac andWeU Clean~outwork ~ 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 (hi) 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 I / 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 li,Kéand 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 TeI907-357-8130 Fax 907-357-8340 www.EvergreenGas.com ) =\l=I~GII~==I'1 I:~#' ~'~i!1,H:t¡¡;; I!! ~Î\¡¡ILA$I\ .Iii! !!::~ml:l_ /!¡';:¡IJÖ!iiu\\:!!;i' ml i::lI!!~¡¡¡:¡jm:i',:!;If!i!::I¡i1·¡¡I!i:. ¡¡lit:. PROPOSED PROCEDURE PIONEER UNIT DL SMITH No 1 API: 50-009-20026-00 PERMIT: 202-184 NE/NE OF SECTION 1 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: 274 ft Kelly Busing: 278 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 18, 2002 and drilling ended on November 20, 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), DJ 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 2492 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. TiQht 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 =\'=1 II~==I'\I :ï;l:: 1ii(~¡J j:t.t:;¡:: ~îi,¡!jË.j¡.$K ;/I,'!. t'¡;¡I~ 1:1" ¡!;.i:1!H!'!;iuH!H:i;:i:¡I'I::¡I!\:!)¡:¡lm:¡', Ji¡uikli¡¡!i1I! ;!:.¡\I¡¡: PROPOSED PROCEDURE (CONTINUED) DL SMITH No 1 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 DL Smith No.1: · This well is located in Pilot 1. 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H20 Dr ·sp-iJ· (ài$it~:~J,.....: i~ðõ-5 ..../;:~f~~~.-"=~:,, i . I,:~~~ ~~~~i!,.~" lbF~4-=c-¥-:::" ":.': ,":, ..:.::,_.....~~\..----..ií)~ ...._..._> i :"~~~'.ii' Ll .' .-' ~<.~"~:S:!""1)_..- -.: ~~~~~~-Lã~din~' ~Jt j. ~~·"~~:,,~~~,,·:.~!..:~~~_·'~fQ(,,~:;,,=-.J:~:0 IF ~..JÚtl#··- >·:;)~~~lP-I._;"~~"..;" /. .,'j, - ..-ç:tnn " . r .- .., ·.·_,:......,ì.. I =:=tl... ,k~ .iL1~:;:':¡L ~ >~ ,I. h Casing and Tubing Data Strengths taken to 100% for Tubing and 1 000/0 of Casing Weight ID Drift Collapse Burst Yield Capacity (ppf) (in) (in) (psi) (psi) (klbs) Bbls/ft 6.4 2.441 2.347 7,680 7,260 72 0.005794 17 4.893 4.767 4,910 5,320 229 0.02217 0.01521 j Size (in) 2-7/8 5-1/2 (above) Tubing Casing Annulus Capacity Ftlbbl 172.6 45.093 70.685 /' Street: 1075 Check Street, Suite 202 Wasilla. AK 99654 Mailing: P.O. Box 871845 Wasilla AK 99677 Tel 907..357-8130 Fax 907-357-8340 www.EvergreenGas.com =\I=I~GI~==I'I l:tl!:!\iCJ!'U :l~1!! ~î, jm.t.ât.$"JI.:I.lt:cþj~ 1:1.. ¡Ii, ¡:¡lIb!¡í¡I\~!!:i: ¡i¡! 'r.:Ilh~!'¡qIÜFi· '!~h!¡;;:!¡;¡mj¡!L ¡1J'I!. PROPOSED PROCEDURE (CONTINUED) DL SMITH No 1 1. MIRU Evergreen Workover Rig. Using Power Swivel, tubing and bit, drill out +/- 90 feet of cement in Casing. RDMO Evergreen 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 full bore lubricator and spool on top of frac valve (see BOPE sketch). Perforate zones (2,212' - 2,220' , 2,125' - 2,132' KB, 4 spf, 19 gr premium charges) for stage 1 frac treatment. RD Patterson Wireline. 4. RU Evergreen Well Service for Stage 1 Frac. Pressure test lines and Demco 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 120,000 Ibs. Collect at least 15 minutes of fall-off. Bleed-off pressure via flow-line. RDi;V7f- reen Well Service. 5. RU Patterson Wir 1'n ... Using fullbore lubricator and spool on top of Demco Frac Valve, set RBP 2 0 Jt KB at and perforate (1,974' - 1,978', 1,953' - 1,957' KB, 4 spf, 19 gr charge ones. RD Patterson Wireline. 6. RU Evergreen Well Service for Stage 2. Pressure test lines and Demco 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. RD Evergreen Well Service. ~/7 7. RU Patterson Wireline. Set RBP at , 1 ,/ft KB and perforate (1,858' - 1,862', 1,840' - 1,844' , 4 spf, 19 gr charge ··nes. RD Patterson. 8. RU Evergreen Well Service for Stage 3 Frac. Pressure test lines and Demco 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 1 q minutes of fall-off. Bleed-off pressure via flow-line. RD Evergreen Well Service,.:/ .,." ,i/ 9. RU Patterson Wireline. Set RBP a~/(8,1Æ(ft KB and perforate (1,756' - 1,760, 1,708' -1,712' KB, 4 spf, 19 gr charges) ~~RD Patterson. 10. RU Evergreen Well Service for Stage 4 Frac. Pressure test lines and Demco 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. RD Evergreen Well Service. 11. RDMO 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 110% 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 Tel 907-357-8130 Fax 907-357-8340 www.EvergreenGas.com =\'=I~G¡I:~==I'I 1:!~:!¡iCi!\lI:t;:;~ ~i\¡¡¡.'-MK;Ä) .1t~,t;J;i~!:I_ ¡II i:¡lii:¡!¡ilm¡!ljr'\i¡i,tlI!¡:i¡iqt;!!~¡:'I;rll¡¡::¡Lí¡!;jl!i!i. ¡¡¡il: 19. Place on production test. WELLBORE DIAGRAM PIONEER UNIT DL SMITH No 1 API: 50-009-20026-00 PERMIT: 202-184 /. NE/NE OF SECTION 1 TWN 17 NORTH RNG 3 WEST MATANUSKA SUSITNA BOROUGH, ALASKA ,~"I,©);iií\Ç~[\:@¡¡WI11\¥;\'%§!f~!\W.~·\""''' . · · · · · · · ... · ." · .. ..c:....:cC,:;\.. .. '.' · .:'. · · · · · · · · .. · · · .....:.,. ....:)..., .. :.. .' .. · · · · · · · · · · · · · · · · · · · · · · ...~. · · · · · · ., · · ,..... . t:;::i""'"'''' . ::',,¡'~Xi¡Î~'{\~"\Y. : · . . · ... . l':L~" ::<:>:,~'::r~:,::::'::~!;;,:~~l:(':;'" PBT~, .239,4,~· K~:". Street: 1 12" Conductor Casing (0 to 324 ft KB) Casing Driven into ground 8-5/8" Surface Casing (Surf to 1038 ft KB) 8-5/8",23 ppf, ST&C, Limited Service Cement 433 sx 15.8 ppg Class G sx Circ to Surface 5-1/2" Production Casing (Surf to 2497 Ft KB) 17 ppf, K-55, ST&C, New 2002 Cement with 410 sx 13.7 ppg Class G sx · · Stage 4 (64,000 20/40 Proppant) · Perforations: 1,756' - 1,760, 1,708' - 1,712' ft KB · (4 spf, 19 gr charges, 0 .48" hole) · · RBP 1,810 ft KB .. . · · · Stage 3 (64,000 20/40 Proppant) · Perforations: (1,858' -1,862',1,840' -1,844' ft KB · (4 spf, 19 gr charges, 0.48" hole) · RBP 1,910 ft KB SLa.9~ 2 (Ÿ~L.OOO 20/40 Pro~pant) , , ~~~~-1,978, 1,953 -1,957 ft KB (4 spf, 19 gr charges, 0.48" hole) R-lJ P -¿,ø too ' µ~" Stage 1 (120,00020/40 Proppant) Perforations: 2,212' - 2,220', 2,125' - 2,132' ft KB (4 spf, 19 gr charges, 0.48" hole) ,¡ i;;} 99654 Mailing: P.O. Box 871845 Wasilla AK 99677 -J:J7-8130 Fax 907-357-8340 www.EvergreenGas.com ); =\'=I~GI~==I'I RESOURCES (ALASKA) CORP. A ~~U!'.·;lljIJtf) {\f [."(.'fC,tf'('n ,(.ff'.".¡1LI.''Cr.1!io, ,!nc March 31 , 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: 10-403 - Fracture Stimulation Evergreen DL Smith No 1 Pioneer Unit Ii API: 50-009-20026-00 Permit: 202-184 NE/NE of Section 1 Twn 17 North Rng 3 West Matanuska Susitna Borough, Alaska Dear Commissioners Palin, Ruederich and Seamount, Pursuant to 20 AAC 25.270 -- Initial Reservoir Properties, Evergreyn Resources Alaska Corporation submits the following 10-403 to run pressure gauges to determine reservoir pressure of the subject well. This is a simple and straight forward procedure will take 1 day, as proposed. This operation will occur before we fracture stimulate the subject well. We plan to begin this operation upon approval of this permit. Thank you for your help. Please contact me if you have any questions. Sincerely, 17-"" E'; ..~ ~ -;VE··....l>n µ,""'~ r:¡rr"" '-; ~ ~ ,,~ ~~,' ~œ ,~ Attachments APR 0 1 2003 l~.1a·"¡'a {'¡'¡ ';( (1 (' I' .. ru ijl\ .....11 \,;.: \.idS vons. v:;rrm1J.3SfQ11 i\nchorsge Street: 1075 Check Street, Suite 202 Wasilla, AK 99654 f\"ailing: P.O. Box 871845 Wasilla AK 99677 Tel 907-357-8130 Fax 907-357-8340 VMW.EvergreenGas.com O~;G' NAi. ) ) v-Jc; It- 'f l if ¿O,-1 '5 ()J-J \\~)1-/C!/ Ic) '< ~ q ,,01 --J STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT FOR SUNDRY APPROVALS 1. Type of Request Abandon 0 Suspend [J Operation Shutdown After Casing IJ Repair Well 0 Plugging Change Approved Program 0 Pull Tubing n Variance '-' 2. Name of Operator Evergreen Resources Alaska 5. Type of Well Development 0 Exploratory [8] 3. Address: P.O. Box 871845 Stratigraphic i.J Wasilla, AK 99687 Service 0 4. Location of well at surface: NElNE of Sec 1 Twn 17 North Rng 3 West, Seward Meridian 3293' FNL & 293' FWL OF SEC At top of productive interval: Same At effective depth: Same Total depth: Same 12. Present well condition summary Total depth: Effective depth: Measured true vertical Measured true vertical Length Size Cemented 2510 feet feet feet feet 2510 Casing: Structural Conductor Surface Intermediate Production Liner Perforation depth: 320' 1034' 12-3/4" 8-518" 70 sx on bot & 10 sx on top 433 sx 15.8 ppg Class G, Circ to Surface 5-1/2" 2492' 410 sx 13.7 ppg Class G, TOC +1-100 ft Measured 2,212' - 2,220' True vertical 2,212' - 2,220' Tubing (size, grade, and measured depth) Packers and SSSV (type and measured depth) none 13. Attachments: Description Summary of Proposal [8] Detailed Operations Program IXJ 14. Estimated date for commencing operation 2-Apr-03 [] Re-enter suspended well 0 o Time extension o Stimulate o Perforate 6. Datum elevation (DF or KB): 278 ft KB (4 ft AGL) 7. Unit or Property Name: Pioneer Unit 8. Well number: DL Smith No 1 9. Permit number: 202-184 /' 10. API Number: 50-009-20026-00 r 11. Field and Pool: Pioneer [8]/ o Other ,/' Plugs (measured) none Junk (measured) none Measured Depth True vertical depth 324' 1038' 2497' /' BOP Sketch [8] 16. If proposal was verbally approved OilD 15. Status of well classification as: Service D Gas ŒJ Suspended 0 Name of approver Date Approved 17. I hereby certify that~1"~oing is true and correct to the best of my knowledge. Signed ~P7 - · TiUe Alaska Projects Manager FOR COMMISSION USE ONLY Conditions of approval: Notify C0l'!1mission so representative may witness) lL ~ Approva! No. 3(,\..3 " (.0 c¡ . ' r~{ 'U'Â-t\C "Z.S".2~St~)~ 'Z.-oMc'Z-<;, l.t1(~ ) 0... L:e·~\.e. t#-!{{ (!.¡~( (I-h(.\..\.PIY\..~~.ic.. """r)p~(/ed. Plug integrity L-::= BOP test ¥. Location clearance 0 Mechanical integrity test [J Subsequent form rê'quired 10- '-t (;. I ~:~~~~~~ro:~~:mmiSSion ~ ~ ~ Commissioner Dam ~r£VEO APR 2 ryqOMS 8FL Date March 31, 2003 APR 0 1 2003 -OR G~NAL A¡a~ka on ~~ Gas Gon~;" Cc:mmissÎon Anchorage ') ) =\I=I~GI~==I'I RESOURces (ALASKA) CORP. ,.; SI/to ',,":M !'!' (II t\/('rqf{'t"11 }'¡:',S,Clu¡,r..-e,'P !r1C Program Summary Pioneer Unit DL Smith No 1 API: 50-0009-20026 Section 1 Township 17 North Range 3 West Matanuska Susitna Borough, Alaska The subject well was spud on November 18, 2002 and the rig moved off on November 20,2002. The well was drilled to 2510 ft KB and 5.50 inch casing was run to 2492 ft KB and cemented with 410 sx 13.7 ppg Class G sx of Class G Cement. During these operations, air was used and there were no incidents that would cause concern from a well control standpoint. The goal of this well work is to determine formation pressure within the Tyonek coals. We plan to obtain this information, as required by 20 AAC 25.270. In this procedure, a Tyonek Coal will be perforated, broken down with 10 gal 280/0 HCI followed by 5 bbls of fresh water. Pressure gauges will be "soft set" using a wireline /'" truck after the breakdown to measure the pressure decline and consequently, estimate reservoir pressure. In this procedure no work-over rig will be used - only an EWS cement pump and a wire-line truck. The pressure gauges will be left in the hole for approximately 2 weeks and then retrieved. Following this procedure, the well will be fracture stimulated. Proposed perforations are at a depth of and are detailed below. PROPOSED PERFORATIONS Interval Formation Shots/ft Size Holes Perf Description 2112-2120 Tyonek 4 0.48" 32 19 gr, premium deep penetrating As specified in 20 AAC 25.280 (b)(4), fresh water will be used to control the well. This wellbore was drilled with air and water sufficiently killed the subject well. As specified in 20 AAC 25.280 (b)(5), the pressure gradient is normal. Thus bottom hole pressure on the bottom most interval is (2,120 ft x 0.435 psi/ft) or 922 psig. We plan on using 3,000 psi BOPE. ReQulation Exceptions 20 AAC 25.285: · Evergreen requests that our manual BOPE or Demco Frac Valve, as illustrated on the next page be acceptable for this operation. · Evergreen requests that the BOP be function tested only. During air drilling, the well was completely evacuated with liquids and the well flowed minimal gas. This is consistent with fully watered coals. · Evergreen requests that the kill pump remain in the yard when the pressure gauges are retrieved and be called out if necessary. Coals have not yet desorbed and as drilling showed, there is no free gas in the system. 20 AAC 25.287: · Evergreen requests that our Full bore lubricator on top of our BOPE is acceptable. Street: 1075 Check Street, SUite 202 Wasllla. AK 99654 Mailing: P.O, Box 871845 Wasilla AK 99677 Tel 907-357-8130 Fax 907-357-8340 wW'N,EvergreenGas.com BLOW OUT PREVENTION EQUIPMENT FOR FRACTURING DOWN CASING A schematic of Evergreen's BOPE for this breakdown is shown in the adjacent figure and detailed in the table below. Here we propose using 5,000 psi rated (10,000 psi Size Psi test) 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 Demco 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. ) ) =\I=I~GI~==I\I RESOURCES (ALASKA) COR~ A S~~,":1o.ør\' (\1' f·{~r;"t.'i"" R{<S,C}")¡'Cll"). Joe BOP DETAIL FOR 5 BaL BREAKDOWN BLOW OUT PREVENTION EQUIPMENT WIRELlNE OPERATIONS For all wireline operations conducted in this procedure, the following BOPE is proposed. All wireline operations are conducted under a 5-1/2" x 10 ft fullbore lubricator. Between 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 Demco 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 the lubricator and the Demco 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 Was ilia AK 99677 1eI907-357-8130 Fax 907-357-8340 www.EvergreenGas.com TO 1 SM F"RAC LINES 1--~-1 r-t---+-, S J] /' IT--'-'--~''----Tj 1- I I,-,·:¡-j :3 ~--] 1td"'''"''1 Wellhead f"-'- 2 Casing Frac BOPE _..,;'::!:L .p 7 -;:.. l;t~-- ~1._~_~~-F 5 J::.·.f Q. /' [;---~~~..~~~=~~ 1 CCrWell~ad -þ 2 Wireline BOPE ) ) =\I=I~GI~==I\I RESOURCES (ALASKA) CORP, A Slt~5",J\'/lry (If ~:'v('rOft~tl~1 ,r~~·S.l'l...fl~C:I,<;, 1,1I.~ Pressure Gauge Set Procedure Pioneer Unit: DL Smith #1 API: 50-009-20026 Section 1 Township 17 North Range 3 West Matanuska Susitna Borough, Alaska Elevations: GL: 274 ft KB: 278 ft (4 ft AGL) Objective: ("'/ Soft set pressure gauges for reservoir pressure test. History: This well was initially drilled October 2002. There has been no further activity on this well. Preparation: 1. AOGCC: Contact Winton Aubert (907-279-1433). 2. Tanks: Not necessary. 3. Water: If well control incident occurs, mobilize both 80 bbl water trucks from Evergreen yard as the source of kill fluid. 4. Pumping Services: EWS cement unit will be used if the well needs to be killed 5. Wireline Services: Patterson will perforate and provide soft set equipment and gauges for this test. 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 ID Drift Collapse Burst Yield Capacity Capacity (in) (ppf) (in) (in) (psi) (psi) (klbs) Bbls/ft Ftlbbl Tubing 2-7/8" 6.5 2.441 2.347 5760 5450 99.7 0.005794 172.765 Casing 5-1/2" 17 4.892 4.767 3928 4256 273 0.02325 43.015 Annulus 2-7/8 to 5-1/2 0.01522 65.710 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~GI~==I'I RESOURCES (AlASKA)COR~ A SÙÒSfl:1l'~tr')' (11 FV(!fqn~l~n R~";()urr...·t!_<; Iflt~ PROCEDURE Soft Set Pressure Gauges 1. Open Demeo Frac valve. This is a new well with no perforations. /' 2. MIRU boom truck. 3. MIRU Patterson wireline. 4. NU fullbore lubricator and Spool. 5. TIH wI 4' expendable gun loaded wI 23 gram charges. 6. Perforate 2112' - 2120'. / 7. TIH wI dump bailer full of 280/0 HCL. / a. Dump bail acid @ 2102'. This is 10' above existing perfs. b. RD Patterson. 8. M I RU Evergreen Cement Pump Truck and Evergreen Water Truck. Breakdown perforations and displace acid with 7 bbls fresh city water and clay stabilizer. Max Pressure is 4,000 psi. Slowly pump acid through perfs (1/2 bpm). Pick up injection rate to 5 bpm and displace remaining water. Close Demco Valve. Remove Treating Iron. 9. RU boom truck. 10. RU fullbore lubricator and flow T. Surface pressure not to exceed 1,000 psi. ",- 11. TIH wI collar stop tool and 3500 psi quartz crystal gauges. ..- 12. Set casing stop in collar @ 2200'. 13. Shut well in. 14. Clean location. 15. RDMO Patterson. RD boom truck. 16. RDMO EWS. 17. Retrieve gauges via Wireline in 1-2 weeks. 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=I~GI~==I'I RESOURCES (ALASKA) COR~ A StJC,s'nJ'fiH}' (II t'~'~f9"-t'(lI' }~","i.o.,,rt.~f!:S, Jf~ Existina Wellbore DiaQram Well DL Smith #1 API 50-009-20026 =V=I~GI~==I'I Qtr/Qtr See 1 Twp 17N Rng 3W Date 3/27/2003 Status Current Size Weight Grade Th read County Matanuska,Susitna State Alaska Casing 8-5/8 23 J-55 8rd Field Pioneer Unit Country USA Casing 5·1/2 17 J·55 8rd Tubing No. Depth I Length 00 10 Description ..... .... Has been no activity on this well ~~ ~:i.I't;~'" PBTD 2394 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~GI~==I'I RESOURces (ALASKA) COR~ A SubLs¡.j·ur¡. QI Cv('mf.l'f1r1 R~SOl.lt(i!'5, ,Ir'l(" Existing Wellbore Diagram Well DL Smith #1 API 50-009-20026 =\'=I~GI~==I'I QIr/Qtr See 1 Twp 17N Rng 3W Date 3/27/2003 Status Proposed Size Weight Grade Thread County M a1anuska, S usitna State Alaska Casing 8-518 23 J-SS 8rd Field Pioneer Unit Country USA Casing 5-1/2 17 J-55 8rd Tubing No. Depth Length 00 10 Description ... .... 1 3382 8 Perfs from 2212 - 2220, 4 spf and 23 gram 2 3352 2 3500 Psi quartz crystal gauges and collar stop j' A2 ~i!l.... PBm 2394 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~GI~==I~~ ) RESOURCES (ALASKA) COR~ A Subsidiary of Evergreen Resources, Inc. ) Friday, December 06, 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 DL Smith 1 API No: 50-009-20026-00 Permit No: 202-184 NE/NE Section 1 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 18, 2002 and was finished drilling on . November 20, 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. T 19awa RECe\VED DEC 0 9 2002 Naska Oil & Gas Cons. Commission Anchorage PO, Box 871845 · Wasil/a, AK 99687 . TEL 907.357.8130 · FAX 907.357.8340 ~ ,,1 ) STATE OF ALASKA ) ALASKA Oil AND GAS CONSERVATION COMMISSION REPORT FOR SUNDRY APPROVALS y.J6Îr Il-l q I 0 'l.- f^' 11¥.1 , q .,J d''V ots )"ZI { Coí ,·;;!.-/~ 1. Type of Request Abandon rJ Suspend U After Casing 0 Repair Well 0 Change Approved Program [J Pull Tubing [J 2, Name of Operator Evergreen Resources Alaska 5, Type of Well 3, Address: P.O. Box 871845 Operation Shutdown Plugging Variance Development Exploratory Stratigraphic Wasilla, AK 99687 Service 4. Location of well at surface: NE/NE of Sec 1 Twn 17 North Rng 3 West, Seward Meridian 3293' FNL & 293' FWL OF SEC At top of productive interval: At effective depth: Total depth: 12. Present well condition summary Total depth: Effective depth: Casing: Structural Conductor Surface Intermediate Production Liner Perforation depth: Measured true vertical Measured true vertical Length Size 2510 feet / feet 2510 feet feet Cemented 320' 12-3/4" 70 sx on bot & 10 sx on top 1034' 8-5/8" 433 sx 15.8 ppg Class G, Circ to Surface 2492' 5-1 /2" 410 sx 13.7 ppg Class G, TOC +/·100 ft / 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 r' L.J ŒJ Re-enter suspended well !J Time extension [J Perforate 6, Datum elevation (OF or KB): 278 ft KB (4 ft AGL) 7, Unit or Property Name: Pioneer Unit 8. Well number: DL Smith No 1 9. Permit number: . 202·184 10. API Number: 50·009·20026·00 11, Field and Pool: Pioneer rJ [J Stimulate C] [J Other [J ŒJ o fJ Plugs (measured) none Junk (measured) none Measured Depth True vertical depth 324' 1038' 2497' RECEIVED DEC 092002 Alask3 Oil & Gas Cons. Commls~ion Anchora~e BOP Sketch 0 14. Estimated date for commencing operation 15. Status of well classification as: 16. If proposal was verbally approved OilD Date Approved egoing is true and correct to the best of my knowledge. - Title Alaska Projects Manager FOR COMMISSION USE ONLY Conditions of approval: Notify Commission so representative may witness Plug integrity 0 Mechanical integrity test [J Subsequent form required 10- '1·05' to V'~S ~¡lt ðf~~':'''Y\.-S , Commissioner Datel:Z.¡ '/ (/ It; 2- SUB IT IN {RìpLlCA TE DEC 1 I BOP test D Location clearance 0 ORI~'NAL SIGNED BY M L. Bill Approved by order of the Commission Form 10-403 Rev 06/15/88 ~qOMS 6Fl Gas Œ] Suspended 0 Service 0 Date 1216/02 Approval No. .30;). -:3~ {¿, ) Well Bore Diagram DL Smith No 1 Evergreen Resources Alaska Pioneer Unit NE/NE of Section 1 Twn 17 North Rng 3 West, Seward Meridian Conductor Casing: 324 ft KB 12-3/4", heavy wall, welded connection Cemented with 70 sx on bot & 10 sx on top 324 ft KB 1038 ft Suñace Casing 1038 ft KB 8-5/8", 23 ppf, J-55, ST&C Cemented with 433 sx 15.8 ppg Class G Circ to Surface Production Casing 2497 ft KB 5-1/2", 17 ppf, J-55, ST&C Cemented with 410 sx 13.7 ppg Class G TOC +/-100 ft / ',r".",. 2394 ft KB ::::t':('.I,':":{j\::;: ...;~~IJ(tti(:';/:i/ ...... PBTD 2394 ft KB Cement in Csg 2510 ft KB ,- "L:';'~"<, ) ) ~~~7E J~ ~~IÆ~;X~ / / / TONY KNOWLES, GOVERNOR AI~A~IiA. OIL AND GAS J hn T· CONSERVATION COMMISSION o amgawa Alaska Projects Manager Evergreen Resources (Alaska) Corporation PO Box 871845 Wasilla AK 99687 333 W. pH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Pioneer Unit D.L. Smith #1 (Revised) Evergreen Resources (Alaska) Corporation Permit No: 202-184 Surface Location: 3293' FNL, 293' FWL, Sec. 1, T17N, R3W, SM Bottomhole Location: 3293' FNL, 293' FWL, Sec. 1, T17N, R3W, SM Dear Mr. Tanigawa: Enclosed is the approved application for permit to drill the above referenced exploration well, to expand total depth ofD.L. Smith #1 by 900 feet and the surface casing by 700 feet. The permit to· drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits· and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. 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 unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty- four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's North Slope petroleum field inspector at 659-3607 (pager). Sincerely, ~~~ Michael L. Bill Commissioner BY ORDER OF THE COMMISSION DATED this/.r~day of November, 2002 cc: Department ofFish & Game, Habitat Section wlo encl. Department of Environmental Conservation wlo encl. ",I I \ ) ) Waivers for the following regulations are hereby granted for D.L. Smith #1 (Permit No. 202- 184): 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) CORP. 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 DL Smith 1 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 I , . RECEfVED NOV 1 2 2002 AI£tS1(a Oil·& Gas Gons. CommissIon Anchorage John J. Tanigawa Alaska Projects Manager PO. Box 871845 . Wasil/a, AK 99687 . TEL 907.357.8130 · FAX 907.357.8340 " STATE OF ALASKA ALASKA)L AND GAS CONSERVATION CO~'~ISSION PERMIT TO DRILL --.. 20AAC25.005 I2f;V/~/ðr¡""'" [ ] Service [ ] Development Gas [ ] Single Zone [ ] Multiple Zone ~ [X] Exploratory ~.] ~~~~~rË):~~tToens~DF or KB~ ] D~~~I~e~de~~~~OOI f" DF 3' AGL \ 6. Property Designation Private 7. Unit or Property Name Pioneer Unit 8. Well Number D.L. Smith #1 9. Approximate spud date 11/17/2002 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 (TVD) 1 a. Type of work [X] Drill [] Redrill11 b. Type of well [ ] Re-Entry [ ] Deepen 2. Name of Operator Evergreen Resources (Alaska) Corporation 3. Address P.O. Box 871845, Wasilla, AK 99687 4. Location of well at surface 3293' FNL, 293' FWL, Sec. 1, T17N, R3W, SM At top of productive interval Same At total depth Same 12. Distance to nearest property line 247 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 k/4Ã- It I is" I () 1- ML-~ ',/15""/0 Z, f~ - Pioneer 11. Type Bond (See 20 MC 25.025) Number RLB0004711 Amount $200M 113. Distance to nearest well 17,360 ft (BL T#1 ) Maximum Hole Angle vertical Alaska 011,& Gas Gons. Commission Anchorage [X] Filing Fee [X] Property Plat [X] BOP Sketch [X] Diverter Sketch [X] Drilling Program [X] Drilling Fluid Program [ ] Time vs Depth Plot [] Refraction Analysis [ ] Seabed Report [ ] 20AAC25.050 Req. Contact Engineer Name/Num r: hn Tanigawa (907) 841-0000 Prepared By Name/Number: John Tanigawa (907) 841-0000 21. I hereby certify that the fo 's true and correct to the best of my knowledge Signed Alaska Projects Manager Commission Use Only IAPI Number ~lfovfl Date I See cover letter sO -Dc>7 - 2-00 2~ - OD Y II~,D h for other requirements Samples Required: [ ] Yes l>4' No Mud Log Required [ ] Yes I}c1 No Hydrogen Sulfide Measures: [ ] Yes pq..No Directional Survey Req'd [] Yes [)4 No ~~:;;ür;~~;:~:f ;=_! f~ß~~~]::;rJ ,1' :::~t.1~ su>-~ ORIGINAL SIGNED aý" by order of ~ ~ Approved By M t. Bill Commissioner the commission Date II I "70?--. Form 10-401 Rev. 12-01-85 Subh1i In riplicate Hole 13 11 7.875 Specifications Grade Coupling K-55 Welded K-55 STC K-55 STC Weight 48 24 17 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 I ntermed ¡ate Production Liner Perforation depth: measured true vertical 20. Attachments Title Permit Number /~ ZbZ- - '-ï Conditions of Approval: 1600 psig Length 225 1100 3900 Setting Depth Top Bottom MD TVD MD TVD 3 3 225 225 3 3 1100 1100 3 3 3900 3900 Quantity of Cement (include stage data) 26 sx. If necessary, pour add' cement at surface 407 sx. Circulate to Surface 671 sx. Circulated to surface ./ Plugs (measured) Junk (measured) Size Cemented MD TVD RB€&IVED NOV 1 2 2002 Date 1112('~~ > \ i~ t......~ ';::i';~~:;\:,i,\):'i:' 1::":'::"\\"'" "".""\\\\'. '., . ,,<.'.",'·':","i\. "(A I """""k )~,~~t,~olled L¡~~rgree,n:,ù,:Res,e:tiJrCêS:\, . ª~', Q/,:~\:~~,'~~i:\':'\"', 14"";~"'.·,,1\:'1',' ·17th 5t t 6 "t 1200 ).~.,:.\::,.'\,,:.'\\.:.'.,'\.'..' '.'. ...........'.'..'.:'.',\'.'.,. .' ..I.i:.;,':.:.'.':...·......'.....,'. ..' w' . ree, UI e .\\:\'.1,\\,: ",,\i\,' ".\- Deliver CO 80202 ¡B{:}i~\::i:~:':':'" .' :::::\,i):,:': !.i,\,;,:.\.(,'.\,:,,'.·.,~.::..,:.\,\,..::',',\,',~'~""1 \''':.,:;:\;1''':' ,'.<'....'. ::':,'1,":<',:,:,:,:::,,:.':\.,"':, )nia'';¡ationarBånk\\\'I\ , Chec~No Check Date Check Amount 1'1/05/20Q2 "******~~.****$1 00,00 \;'\\\\:\~;\;~\;~:~1\ I' '\\ ~ \ PAY One Hundred Do"arsand Zero \\:\\\,\\\.\:t",\}\~:II~:" Void After 90 D~~~(", ,,)~\,!;:,:\,:.:, TTH~ . ~;i~::~~1~::~~$~i~~o &{&?)J!!¡~I' ORp~R Anchorag,~ AK9,~\q01 , , , ", I ,'" ",,1 " II , \{ ~6\\ \ \ ,."...." \\,,~,\\,,\ \ \\\ \ \ \ \ \ \ \~ I, \ ,I' \\\\ \ II \ \'\\\ \; \ ~J:i:":'\ \ \ 1'\;:'\' \ I, II \ I, \ I, \ \ \ \ \ \ \ ,I II \ \ ,\\\ , .U" .. ... .... ... . } ,;::\:~,>"> , ::',..: '::' .: i\;: < >:'. I ;;:::' <:;:1 \ ''':'' ',\ "i" ;':; '" '~:' ,':':', II- DO? 'ÚD ß 0 0 ~":rn JI- I: "."",' ~ ~'O ,~:'ir? £.1,_:' ",~rl. 2 0 2~' '~:~~'~\II- '... <''''', ' ,," \, ',: ,:,,'., , ,', " , 6 :~. ..~".\~ ~... '~';~: ,~. :.~ ~. ."_ ....... ___ ~ .. .... __.' ~:.~~~,~~ '...... __ ..,.. ~ ~:.: .~.:\,: :,::~~::~,~:\ ~': .~.___ ..~'... '..~.~ ..'~.'~,~~L~ '.:~..:"": .~:"_~__. __ . __... .._._ ..._._.. .._~\~'..~~':::" _. _.. .. _'... ~_ I\~~,~~.~.~. L~. '_~'~.... .. ~~.;,~~'.~,. _ '~~, .'~.,..'.~' .'""' ..11_.__ _ _. u. ..... ... .._~ ^PLEASE DETACH AT PERFORATION ABOVE^ ^PLEASE DETACH AT PERFORATION ABOVE^ Evergreen Resources (Alaska) Corp 1401 17th Street Suite hoD Denver CO 80202 11 0402 JT 11/04/2002 Permit Fees AOGCC 0.00 100.00 RE€flVED NOV 12'2002 Alaslèa DB & Gas Cons. Commission Anchoraa 9 I 009195 I ~ Vendor Check Date: 11/05/2002 Check Amount ~ I 100.00 I FW: Well_Location _ Evergreen.xIs ) ) Subject: FW: Well_LocatioD_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 origihal 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» I..·.. .. ". ..........................,.......,............w.y...".,y.~"............" ..... .............. .··'....",.'.w......................... . .. '.........................................................,.,.".............................."..................'........."'.........w.............w.'.............·.....w........................,,...... 11111I !\"II.H;+'WII! II' ... .... .,,, ..\BIIHWV,XIIY.!I'I.V·WI.V\I:."'''''''''HtIXxLtIlIIH\H:-'-''I''_I,HI·.......''''"''-L"'-'JJ·IL·""vH'....~H\m'~l\lIlIw,....w-':W'·..'~!w.'X>'IL""'I!".¡.\Xj/XWt\I.CHHI'>W\o'»i"":.',...~ßM't-'!"'_.t'LH¥" Name: W ell_Location _ Evergreen.xls ~Well Location Evergreen.xls! Type: Microsoft Excel Worksheet (application/vnd.ms-exceI)[ Encoding: base64 . .. .. ,"'°'''·):111111I1111',11/''11'1'' , , " """"·""....··a.\H\'XIH!II..'tI"'...· ...,_.'v"v"'....~' ...I!I·IW~\'I..·..I..I I·..·.. .....~,....'W"... "1'1' I ....y....··_\UIllIll¡.:.wIlIllV,l:":I\:II\"to"~ 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 ;1---"--"-- ..-.-.--.,-- ,--.-.-..--.--- -~-_._.-..__._- - ---, -'~'r-"-- N ~ 'm;;-'W e 11_ Loc at i ~n _ E v ~rgree~~. xIs " I ~Well Location Evergreen.xIs! Type: Microsoft Excel Worksheet (application/vnd.ms-exceI), ,"w,~=,~"O""W,_,,~'o""o"."'"~^w.w'.".,~w~'W_'_'.".'W'_~..".ww""J~~_~~,~!~,~='"~~~~~~____"____~"","~,W___'_>'_~'_"_,"w_w",, ""_w,, """" , ",,,,,w,,o'ow,'.n,'"'''''' 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 ILlAMNA #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 R1 W Seward meridian. 417.4 Located 301' north of the south line and 1841' from the west line of section 20 T18N R1W Seward meridian. 418.9 Located 815' north of the south line and 1832' from the west line of section 20 T18N R1W 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 2774923.09356000000 543786.35874200000 2775528.70150000000 544423.26626200000 2774899.30194000000 542887.46491700000 2774054.90335000000 543355.95720500000 2783408.27296000000 584593.04550000000 2783381.99302000000 584152.01484300000 2783942.33402000000 585004.69554800000 2782923.44787000000 585062.93452400000 2788017.16180000000 587274.33011000000 2788531.16269000000 587261.14713400000 2787480.78035000000 587841.89235100000 2787361.90624000000 586968.42649400000 DD27N DD27E 61.59466451260 -149.74861231100 61.59631427130 -149.74494210500 61.59460882660 -149.75377352900 61.59229425450 -149.75110236500 61.61724205120 -149.51397565500 61.61717914890 -149.51651058400 61.61869441150 -149.51158763300 61.61590632030 -149.51129695300 61.62979282080 -149.49836720300 61.63119900780 -149.49842021600 61.62831369770 -149.49512903800 61.62800698160 -149.50015429700 W :. " 1 :.. I , ,. ". r.· . ~,' ",,,.. ",. 'I' ! "..' , . I . . ", " . . r . . ) t;' ~ ~ "I ) .1'" ," '~ ,,- -~)(- 9ð?- 2. "),.. , n 1.- í) ~ ~~ .ð..v¿~ .----. . ~." ~~ ~¿6Att/A PAf'§- : 'T ~"I Zc.ø <. ,.' - 1(6: /lvNv1l.(~""?')Oy '?II ~ ¡t(~. ""'I ~ Bé'(.ow,e/¥ - ~ 1)¡fe- ~~...__~) f._I.. 5"~: :z ANt ð'Vr- /N ?W' ¡::¡~J>. ~,uO.fr (k,t-tJÿ)t'~1" {NAy ~ 6/~ ~ ~~f! ~~'~.tAJ 4'J V"... A- ~. :I' 4v1>ñJn..I êff- ,llAI.t:r '&>GldW'~~ æCó£UIf::.N (!ðJfI(. CÕk$Vl..f7A.1f". kA,J"/tf,t!A n ~ hS'Mr.r/'~tr¡t: 7>M- ~"'''()Htþ ~/) if. M/ò!; It ¿.,..J¡2. o,riC/.rf/<?;Þ( ð~~LÒ4/'5r 7{~ 1Jñ4.#~ ~ I)V nIL %..,~ -...,;¡~ - Awb ê.... çrtZJl7J;fn4~ I :r. Al'llJ.t~/A-~ ,,~~ .1'. ..) :;;,v~~'~ 'SIIV~ (A-tA.J'A:'') t7aAI' íÞ",~ "'A- RECEIVED SEP 1 0 Z002 A\askaOt, it Gas Cons. Commission Antmge ..~ .' , 10'd 100'ON OG:S1 lO,01 d3S 6909-9¿£:Qr NO r 1~(H:JJX3 . [ . Q ) ) CHECKLIST - SPACING EXCEPTION APPLICATION OPERATOR Evergreen Resources PROPERTY ID/ LEASE FEE Lease FIELD/POOL Pioneer, Tyonek Undefined ADL 374121 WELL NAME D.L. Smith #1 VERTICAL X EXPLORATORY X GAS X DEVIATED DELINEATION OIL DEVELOPMENT SURFACE LOCATION PRODUCTIVE INTERVALS (Top and Bottom) BOTTOM HOLE 3293' FNL and 293' FWL, S. 1, 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 ~ ") f !Æ ~!Æ~~~!Æ ) ~ TONY KNOWLES, GOVERNOR ALASKA. OIL AND GAS J hn T· CONSERVATION COMMISSION o amgawa Alaska Projects Manager Evergreen Resources (Alaska) Corporation PO Box 871845 Wasilla AK 99687 333 W. TH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Pioneer Unit D.L. Smith #1 Evergreen Resources (Alaska) Corporation Permit No: 202-184 Surface Location: 3293' FNL, 293' FWL, Sec. 1, TI7N, R3W, SM Bottomhole Location: 3293' FNL, 293' FWL, Sec. 1, TI7N, R3W, SM Dear Mr. Tanigawa: Enclosed is the approved application for permit to drill the above referenced exploration well. The permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. 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 exdusively 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 permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. 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 permit. Please provide at least twenty- four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's North Slope petroleum field inspector at 659-3607 (pager). BY ORDER OF THE COMMISSION DATED thislð~ay 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 D.L. Smith #1 (Permit No. 202- 184): 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 ih Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill: DL Smith Number 1 NE/NE of Sec 1 Twn 17 North Rng 3 West Pioneer Unit, Matanuska-Susitna Borough Target: Tertiary Tyonek, Proposed TD: 2990 Feet Proposed Spud Date: 4-0ct-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 subject well will have 100 feet of core cut. Attached is information required by 20 AAC 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 AAC 25.070 and 20 AAC 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, EVE, R~REE~.,.~_.,..~_", . ~/ //..&: '" " /~~ /6~n . wa / Alaska Projects Manager S (ALASKA) CORPORATION enclosures PO. Box 871845 . Wasil/a, AK 99687 · TEL 907.357.8130 . FAX 907.357.8340 Hole 13 11 7.875 Weight 48 24 17 Specifications Grade Couplin~ K-55 Welded K-55 STC K-55 STC . . STATE OF ALASKA ALASKA ( )AND GAS CONSERVATION COM: PERMIT TO DRILL I 20 AAC 25.005 [ I Service [ I Development Gas [ I Single Lone [XI Exploratory [J Stratigraphic Test [ I Development Oil 5. Datum I::levation (Dt- or KB) 10. Held and Pool DF 3' AGL 6. Property Designation Private 7. Unit or Property Name Pioneer Unit 8. Well Number D.L. Smith #1 9. Approximate spud date 10/4/02 14. Number of acres in property 15. Proposed depth (MD and 1 VD) 148 2,999' MD, TVD 17. Anticipated pressure {see 20 AAC 25.035 (e) (2)) Maximum surface 1559 pslg , At total depth (TVD) Setting Depth Top Bottom MD TVD MD TVD 3 3 225 225 3 3 400 400 3 3 2999 2999 ~Æ- '1/ ~/o 1- ~ 1('1~ )SION 1 a. Type of work [XI Drill [I Redrilll1 b. 'I ype of well [ J Re-Entry [ I Deepen 2. Name of Operator Evergreen Resources ~Alaska) Corporation 3. Address P.O. Box 871845, Was ilia, AK 99687 4. Location of well at surface ' 3293' ~' 293' FWL, Sec. 1, T17N, R3W, SM At top ofþroductive interval Same At total depth Same 12. Distance to nearest property line 247 ft (S~te of AK) 16. To be completed for deviated wells Kick Off Depth N/A 18. Casing Program . , Size C'asing 12.25 8.625 5.5 [ I Multiple Lone Pioneer 11. Type Bond (See 20 AAC 25.025) Number RLB0004711 Amount $200M 113. Distance to nearest well 17,360 ft (BL T#1) Maximum Hole Angle vertical 1230 psig Length 225 400 2999 Quantity of Cement (include stage data) 26 sx. If necessary, pour add' cement at surface .~. Circulate to Surface I q.g l.<..lGtt- 535 sx. Circulated to surface 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' [XI Filing Fee [XI Property Plat [XI BOP Sketch [XI Diverter Sketch [XI Drilling Program [XI Drilling Fluid Program [ J Time vs Depth Plot [J Refraction Analysis [ I Seabed Report J J 20AAC25.050 Req. Contact Engineer Name/Number: ohn Tanigawa (907) 841-0000 Prepared By Name/Number: John Tanigawa (907) 841-0000 IS true and correct to the best of my knowledge t Alaska Projects Mana~er Commission Use Only IASL¿)m~m - 7-QC)zfo -CO I Samples Reo,Uired:9 . [ ] Yes WNo Hydrogen Sulfide Measures: [ J Yes MNo Required Working Pressure for BOPE: [J 2M, [J 3M, [J 5M, Other: ORIGINAL SIGNED B'( o Taylor SeamQunt Title Date ¥~2&<- Approved By Form 10-401 Rev. 12-01-85 Commissioner ~9Vê ~~ I See cover letter '1 I U V /I' for other requirements I ML1i Log Required [ J Yes M No Directional Survey Req'd . [.J Yes 9'1 No [ J 10M, [J 15M :I.Y\d t'V\a...I1~, ~ L.irJ(ry ~~ ~u~~, 'þ Date ~ ~(j 10 ')-- SUb"/J. ~n 1r~Plicate by order of the commission ') ) =\'=I~GI~==N RESOURCES (ALASKA) CORP. A $\lfJtt/äin,:r or EVPf)}rolJn R~I~c~I"'mi 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. State of Alaska (Evergreen) 2 1 State of Alas (Evergreen 1,500 ft raCius Figure1 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 32931 FNL & 2931 FWL OF SEC 1 Twn 17 North Rng 3 West 32931 FNL & 293' FWL OF SEC 1 Twn 17 North Rng 3 West 3293' FNL & 2931 FWL OF SEC 1 Twn 17 North Rng 3 West (a) Coordinates in state plane coordinates Surface Top Tyonek Total Depth Hole Locations North 2774627 ft & East 1683761 ft ASP Zone 4 Nad 83 North 2774627 ft & East 1683761 ft ASP Zone 4 Nad 83 North 2774627 ft & East 1683761 ft ASP Zone 4 Nad 83 APPLICATION FOR PERMIT TO DRILL DL Smith 1 Pilot 1 Sep OS 03 03:07p DH -- p.2 ) -~ ~= J NOTES: 1. COORDINATES SHOWN ARE NAD83 ALASKA STATE PLANE ZONE 4. 2. GEOGRAPHIC COORDINATES ARE NAD 83. 3. ALL OIST ANCES ARE GROUND IN U.S. SURVEY FEET. 4. VERTICAL DATUM IS M.S.L. NGVD 1929. BASED ON BENCHMARK "L1 03" -, 1 -,.,..,¡,.",...""" 3 D.L.SMITH #1 ~ _ : LOCA TED 3293' NORTH OF THE SOUTH LINE ~ [LL I .Jg.J AND 293' FROM THE WEST LINE OF SECTION 1 tF' n~" , I ~J ~ T 17 N, R 3 W. SEWARD MERIDIAN . _ '11 I 1 I I 7 _ AT LAT. 61'35'38.333"N LONG. 149"4S'04.131"W, ASP ZONE 4 N=2774626.707 E=1683760.669 (NAD 83) ~ " , -/ ~~\":.""""-." ~lI~. GROUND ELEVATION = 274.41. ' ._._ . ~I L.J~ ~ VICINTY MAP SCALE 1" == 1 MILE 1/:'Q)~: ",N 89·47'39'" E 2030_72' N : "crj." ~ N 89"54'40" E 1654.62' CD N 69'55'07" E 131 B.81' 5- ~ Þ 'v"r N 89'41'47" E 2319.29' TRACT "E" (CACHE SU8D.) ;:: ':.:-- pI!:? p~ 8~ z r-. .... 0> I') 1.0 ('.I TRACT "F" (CACHE SU8D.) I..tJ D.L.SMITH #1 . ¿::¡ Ò> o 8 (I) 1319.34° TRACT "0" (CACHE SU8D.) . ..,. 10 in o (:) o (I) SCALE 1" = 1 000' SECTION 2 T17N, R3W, S.M., ALASKA ·N o ~ (:) o z °ò>N 89·54'53" W 1313.5SP It) Ó N I"') SECTION 1 T17N, R3W, S.M., ALASKA PILOT 1 WELL D.L.SMITH #1 PERMIT DRAWING , ,! .........-. .....:. .,1.,.'; . ,..:~" LOUNSBURY & ASSOCIATES, INC. EN GI N EERS- PLANN ERS- SU RVE YORS ?:,~~: :'./. ·:':j~~'~·ì /,'.JC. /.,i··~I~:··-H~:¡::/··.G¡. /-.:,...'\~~.:·:.I~:, ~:)S:::'.C~: " ~. :,~:¡)'}) ?~('} .-:.)¿~ :".'; :-;~, '; ,:..11',; F '¡..."~.-\' I:H:·C~<F.!) f<\'\(,\ I :3C..\L.~ <' óC.)~~)· /\i..1 C;~..: ~;1 12, ? C~) :~~ )\:..':~. ~-.!/,,~1/[ Q28"-¿~\'\·"~_I)\rV(.: =\I=I~GI~==N RESOURCES (ALASKA) CORP. 4 Sub,~1\1I!fY ()f EV"f1r/(n! H(I~(lUfliI,~, IN':. ) ') (b) Proposed Depth, Depth of each objective formation Estimated Formation Tops Quarternary Gravel Surface Tertiary Tyonek 200 (c) Other Information as required by 20 MC 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 DL Smith 1 Pilot 1 " :1,....,."1...?~"P.S.i..q~~~,.y..~!.y~,,.,.....,...,~2,:, ...~,.8,:'".~,~,.~!~~~t.~..."...~~~.",... I ~ . . . , "", ..... . . ,', ... :. 'I I ~ .>- : r ,,,: '.' ,,',', ,':'" ",I.,'" I ¡I " ,~~~~~~~~ VENTING 20 MMSCFD KICK 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 =\I=I~GI~==N RESOURCES (ALASKA) CORP. A¡ S('b~lrli",y of EVÐ/'gwun A~.!1mm::·mi, Inc. -) ) EVERGREEN RESOURCES ALASKA SURFACE CASING DIVERTER EVERGREEN RESOURCES ALASKA PRODUCTION CASING DIVERTER I -I P If ¡¡ " ',,- ',,- '....,..--.................. lSln I r--l r--l WASHINGTON DIVERTER I I ~ ~~~~~ ~~E~~~, """,',' , ,", 181., ¡See Rlghtl ~. ".' ,,,///// -- -, ,..,,,.' I -Iµ "", ',,- '''-,-..",.,.. lSln I r- r--l r--l r--l WASHINGTON DIVERTER ij ~ U ~ RUBBER ELEMENT MODEL 401 O·CG .-, - -'" -. ¡See Belowl / ",,.,/ ""-,,,,../// 161n 161n To 30 FT BLOOEY LINE 8·5/8·, 23 PPF, J·55 CASING 8,097" ID with Hammer Union connector To 30 FT BLOOEY LINE 8·5/8·, 23 PPF, J·55 CASING 8,097· ID with Hammer Union connector = CONNECTOR Iso 13·3/8" PIN ST&C, 8 RD, J·5S ."""",,~, ' ' I CONNECTOR 8·5/8" PIN ST&C, 8 RD, 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 TO of 2,999' TVO (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){O.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 DL Smith 1 Pilot 1 =\I=I~GI~==N RESOURCES (ALASKA) CORP. A Sob~111ill'Y 01 f!:\lp'!1mllll R(p!1(luft.~,~, Im~ ") ') 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 (lb/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 Yield (ft3/sk) Type Comments 1.18 Class G Circulate, if no circulation, then pour from top 1.2 Class G Circulate to Surface 1.35 Class G Circulate to Surface Conductor Surface Production Depth (ft KB) 225 400 2990 Volume (sacks) 47 148 535 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 DL Smith 1 Pilot 1 =\f=I~GI~==N RESOURCES (ALASKA) CORP. 4 SUb,f1ldiflry 01 EVN'¡r¡1i1ll Rtt~¡,)!"~(IS, In/';, ) ) 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 REFACTION/REFlECTION 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 DL Smith 1 Pilot 1 =\I=I~GI~==N RESOURCES (ALASKA) CORP. ~ S(¡b,'Ildiilry or fV"f\.1n1trl! R(I!'t(}HfI.;!/S, Inr: ') ') Appendix A Answer to AOGCC Questions APD DL Smith 1 Pilot 1 =\I=I~GI~==I'I RESOURCES (ALASKA) CORP. A $ub,~I('fjn,.y of E\lo"I~1mlm R(I!\rwft::m¡, Iflr.. ) ) =\'=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 DL Smith 1 Pilot 1 =\f=I~GI~==I'1 RESOURCES (ALASKA) CORP. A $l.ItJ.~ir'lIIIfY or £\In"'l1nrl~11 R~'.!!¡')Ir\::'(r,~, lf1è ) ') 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. (1) 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 co rrect. (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 DL Smith 1 Pilot 1 =\I=I~GI~==N RESOURCES (ALASKA) CORP. 4 Sllb.~1f1lIry 01 E:¡'/I"f1rmm RIJ.'1DUrnr.s, I(lt, ') ) 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 bblslhr 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 DL Smith 1 Pilot 1 ') ) =\f=I~GI~==N RESOURCES (AI.ASKA) CORP. ~ ß!lh~l(fìI!rY 0/ EV1'f}1rmm R(n"'r\~r,~, 111(: Upper explosive limit (UEL) is 12% 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 agents to build two batches of 10.5 ppg mud (or a single 13.5 ¡. ~ I "I, 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 mlix tanks are designed to be used as a cement mixer or as a mud tank and are equipped with Evergreen CementPortablepump 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 CaCl, 1.5 Ibs/bbl Xanthan guar and 10 Ibs/bbl 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 DL Smith 1 Pilot 1 =\I=I~GI~==N RESOURCES (ALASKA) CORP. A S(/b.~H.fiIllY ()f £W:Or'g"'illl n(t~rn:lfl~(r6, I/'Ir ') ) (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 TO. 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 DL Smith 1 Pilot 1 =\f=I~GI~==N RESOURCES (ALASKA) CORP. A $ul).vlrli/ll¥ of ¡:;\I~r¡mH/I' Rm1((lrcus. IflC '-V~IS ICCI t'Wi;)VUI~Ci;)I'"\Iµ""ç¡ Surface.""WeIIControlr$etup The amount Washington gas that can 500 psi safely vented ~~:ger drilling is considerable. illustrate, using Eve rg ree n' s This schematic s Proposed set foot kick of met :--...::s..,-:: drilling and 1,000 psi whi consisting of pipe is not rotating. 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 psi a (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" IOBlooey Line VENTIN(.'; 20MMSCFOKICK 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" 10) 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 DL Smith 1 Pilot 1 Surface Hole Oiverter Rubber Element 15" -'-1 -~ ---, ~9 ~ .! see" SiZES ':'::1:~-':' 2' .278 ~:1'J·3 .; :'L ~~Cil)-;: ~ :.2 =\I=I~GI~==N RESOURCES (ALASKA) CORP. ~ Sulj.~ì!'1r'IIIY or E\I~rprG1111 R(Jl1D1¡'l~(W, 1"17 ) ) 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" 00 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 (i.e., while drilling) and 1,000 psi static (i.e., 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 HöléDiverter 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 DL Smith 1 Pilot 1 ) ) =\f=I~GI~==N RESOURCES (ALASKA) CORP. A $ob,~¡'rlill'Y 0' Evtllrgmtl/J Rtt.\lQUft':'(7,'j, 1m: 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 DL Smith 1 Pilot 1 =\I=I~GI~==N RESOURCES (ALASKA) CORP. A $Ub.l1il1iIllY (), r::\lo\"r¡¡r(~t¡l¡1 n(ll1t)u,,~~,.s., /no ) ) (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? I.e.: 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 DL Smith 1 Pilot 1 =\I=I~GI~==N RESOURCES (ALASKA) CORP, 4 $Ub..~ld'IIIY or EV¡/Irgrmm ROMUrl~(lS, Inr.. ) ) 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 ft ,adlu. 2 1,600ft'oclu. -----------~------~-------~--_.--,-------_._-- 1,500 ft ,adlu. State of Alaska (Evergreen) Pilot 1 Land Map i ./Me~al iHealthJru~t j(EvEt!'9~~O) ~"-;--"''''''' 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 DL Smith 1 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 '"'" .... '- r.)f:' II F_" (Un.......,..) Sial. of Alaok. (Ev.rgreen) F....aI (Un...........' ~tY . 01 AI~1iII ~~F,!~ _______.________w_.._....____________. Slale of Alaeka (Evergr..n) 01 Alaeka rgrMn) APD DL Smith 1 Pilot 1 Slale of AI_ka (Evergr..n ~= ~~IIII~~"!:I) F..rlll (In.._....' ~o ~ Sial. 01 Alaeka (Ev.rg....n) Sial. of Alaeka (Ev.rgreen) ~' ~, :lliJ)i·i:;:¡· " ~, ~ ~ ~ J"I,I:: ."'~,oI,' ,~",,~,:....,.,",¡I ~~.í...;'\!~ .,¡-¡¡¡a,:.,'.iI¡¡', ¡,,¡ SIIIII of Alaeka (Everg,..n) Menla' Health Truel (Ellergr..n Sial. of Alaaka (Ev.,grøøn =\I=I~GI~==N RESOURCES (ALASKA) CORP, .4 !j¡¡tJ,"/rlimy of EVNnrmm R(I!1(W\.~iW, 1/1~ APD DL Smith 1 Pilot 1 ) ) Appendix B Proposed Drilling Procedure ) ) =\f=I~GI~==N RESOURCES (ALASKA) CORP. 1\ Sub..1/(/¡'nry nl tEVf''fIrl'IUT R~,.~OUrr:U6, Inr. Proposed Drilling Procedure Evergreen Alaska Corporation Well Location Elevation Field Target Proposed TD DL Smith 1 (Pilot 1) NE/NE of Sec 1 Twn 17 North Rng 3 West Seward Meridian 3293' FNL & 293' FWL OF SEC Matanuska-Susitna Borough, Alaska USA Kelly: 277 Ground: 274 ft (3 ft AGL) Pioneer Unit Tertiary Tyonek 2990 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 TO 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. Coring Program Roughly 100 feet of core will be cut on this well. Mud logging Program Mud log the subject well from surface to TO. Samples every 10 feet. Formation Tops Formation Quarternary Gravel Tertiary Tyonek Estimated Tops (ft KB) Surface 1200 General Information 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 DL Smith 1 Pilot 1 ) ) =\I=I~GI~==i'I RESOURCES (ALASKA) CORP. 1\ S(t),~lrliftly or r:v~'11W!1I1 A(t~ðurl~Ii'.s, I"r: Proposed Drilling Procedure DL Smith 1 (Pilot 1) Section 1 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 00 and 12 inch 10 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 & LO. 4. Install bell nipple consisting of a 13-3/8" (8 Round, Short Thread and Coupling - standard connection in oil industry) collar on 12.7500 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 fe/sk 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. RI H 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 LO rods and bit. 14. ROMO Water Well Contractor proceed to next hole. APD DL Smith 1 Pilot 1 ) "ì) ) =\f=I~GI~==N RESOURCES (ALASKA) CORP. A $jb,~ldì(try of E~'1"''I1r(llm RQ,gOIlrt:(/S, Inl': Proposed Drilling Procedure DL Smith 1 (Pilot 1) Section 1 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 killl~s from cement pump to rig's stand pipe ready for kill operation. 2. NU Oiverter head (13-3/8" pin on bottom x 4-1/2" OP) and 30 feet 8-5/8",24 ppf blooey line with 125 psi gate valve. 3. RI H 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 & LO 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 1 st, 3rd and 5th joint. Run open-ended. Set casing at ground level. 7. Install 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 Oiverter 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 core point and core. Continue drilling to 2,990 ft KB. Well will be TO'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 & LO 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 Oiverter 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 1S\ 3rd, 10th, 15th and 20th joint. Install 500 psi casing head & ru n 5-1/2" casing with with 6" of stick-up. 18. Cement production casing from bottom to surface. 19. Clean-up well site. 20. ROMO Cement Unit and proceed to next well 21. ROMO Evergreen Rig #1 and proceed to next well. APD DL Smith 1 Pilot 1 =\f=I~GI~==i'I RESOURCES (ALASKA) CORP. A 8.¡¡b,Qidi¡¡ry or £V~f1I1W/1 RosQurcns, 11'1I: 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 DL Smith 1 Pilot 1 ) ) PROPOSED Drilling Procedure DLSmith 1 (Pilot 1) Section 1 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 =\I=I~GI~==I'I RESOURces (ALASKA) CORP. '" S¡¡II,~I(Mry ()/ F.\I¡n'17n~lw R(lMurl~n,s I/'If. ') ') PROPOSED Telephone Contact List DL Smith 1 (Pilot 1) Section 1 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 T anigawa Wasilla, 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 DL Smith 1 Pilot 1 ~ lt) ....... ~ R U) (!) z J= => U .- U UJ ~ o -.... 2 ~ UJ co .- ~ o V EVERGREEN RESOURCES AlASKA CORP DRILLING SITE lAY OUT 500 Bbl Frac Tank 0. 0> 0> "U ~ ±:I.O a.. (I) "U 15' o>co> .Çoc 5~¿ U~ x ~ o o Q5 x ~ .r:: Q o cc N Q5 x ~ .r:: Q o ----ªL- Blooey Line 30 tt (8 in) Mudlogger Trailer -a Q) "Eo> ::J- o~ ~'ê ~O o ::J .= o WEU Light Plant D Q5 ë Q) E Q) u n Light Plant Cement Additives Q) C :¡ ~r Mud Supply Trailer Two Compressors Air Booster & Fuel Trailer Doghouse & Parts Trailer Pipe Trailer 20' Trailer I flatbed I I Tnlck Core Desorb Trailer D LJ Toilet Trash 200 ft ~~ 0~ ~~ ~~ <D o mc 00 <D~ ......JC ot:W oU ~8 ~ :\I:RGR::N P.~SOURCES fALASKI! CORP Wellhead Location ;t:: a a 80 tt 0 1 20 tt ;t:: I.C r-- ~' Light Plant D Items Description Mud Supply Trailer - 28 ft enclosed Batch Mixer - Two 75 bbI tanks 500 BBl Frac Tank - Fresh Water Cementer - on 2O'xB'x8.5' skid Cement Additives - 2O'x8'xB.5' oonex Light Plants - Two to Three on site Compressor - Two Ingersoll Rand XHP 900 scfmI350 psi Booster - Hurricane 3,000 scfm at 1,000 psig Fool Tank - 1,500 gallon diesel tank w/auto shut-off Doghouse TooIshed - 40 ft container wIgen-set Pipe Trailer - has 3,300 ft of 30 ft rods 20' Trailer - holds spider, casing n,mning equipment, BHAs Core Desorblion Trailer -1~24 It trailer on site when coring Mudlogging Trailer -18 ft trailer wI gas chromat & computer Drill Rig - 1999 Ingersoll Rand ~20 Truck Mounted DriU Rig Blooey Une - 30 ft length & 8-518", 24 ppf casing Cuttings Pit - 100ft by 30 ft by 6 ft deep lined Berm . use material from cuttings pit to stop bIooey line pits Par1dng Area - At rear of location KIM Lines - from cementer to drill rig, always rigged up Toilet ~ Portable Toilet on Trailer ¡rash - Commercial or Fabricated Bin Sample Photo '~ =\I=I~GI~==N RESOURCES (ALASKA) CORP. " s ~{~,~_;,.,. J f .i:~"'e-1 í''?!o'Y-.Ú·H ~y Well Control Diagrams DL Smith 1 EVERGREEN RESOURCES ALASKA SURFACE CASING DIVERTER EVERGREEN RESOURCES ALASKA PRODUCTION CASING DIVERTER 15in ------ -- --------- --- - --- - --- -------- _.~---------~ 16 in CONNECTOR isa 13-3/8" PIN ST&C, 8 RD, J-55 b-' ~ ;W': u::: ~ - - - ~7 ~/2'" APD DL Smith 1 Pilot 1 ------------- 15 in WASHINGTON OIVERTER RUBBER ELEMENT MODEL 401 O-C (See Below) 16 in To 30 FT BLOOEY LINE 8-5/8",23 PPE J-55 CASING 8.097" 10 with Hammer Union connectc CONNECTOR 8-5/8" PIN ST&C, 8 RD, J-55 ...--- ;5-~ _..! 171,"2··.. WASHINGTON DIVERTER RUBBER ELEMENT MODEL 40 1 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" 10 with Hammer Union connector .-J =\I=I~GI~==I'I RESOURCES (ALASKA) CORP. ~ ':-:.(5.-.'.'-"~! E.,!?~-<t'\"'"1 JV~":-fa~ .'""~ Tubular and Cement Information DL Smith 1 (Pilot 1) Section 1 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 10 Drift Collapse Burst Tinsile Capacity Capacity Capacity Capacity Annulus Annulus Annulus Annulus (in) Grade (ppf) (in) (in) (psi) (psi) (Kpsi) (bbl/ft) (ftIbbl) (gallft) (ftIgal) (bbllft) (ftIbbl) (bbllft) (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) (bbllft) (ftIbbl) (gal/ft) (ftIgal) (bbllft) (ftIbbl) (gal/ft) (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) (bbllft) (ftIbbl) (gal/ft) (ftIgal) (bbl/ft) (ftIbbl) (bbllft) (bbllft) 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) (gal/sk) Additives Capacity Capacity Surface Set 15.6 1.21 0.2155 5.3 Versaset %%, 5% Salt, % Ib/sk Flocele 0.1175 bbllft 0.622 bbvtt 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 ftlbbJ APD DL Smith 1 Pilot 1 THE ORDER 'OF' :' ',: ',' ".,>:::,~:,,:,::,,;;::,I~\, I :,', \I::.\,:"~:::;:\':·:':::\\?·:",:'\\~\:~\\'\",,, " ,):'\.,;.'::'::'\,' ::v, E\lèrg reenlJp'eFãliñg"l";orp"'" 1401 17th Street, Suite 1200 Denver CO 80202 One Hundred Dollars and Zero Alaska Oil and' Gas, Conservation Commission 333 West 7th Avenue #100 Anchorage AK 99501 A t ') ., "., ,Ç;,9~,~Hl," ,/ ,":\\;', ,'I"" ",ii;':::::',' , """"",lofhbernlðNátiönå!'S::in'k'" Check'Date Check Amount Check No \(Q,Ø:83Ø:Q,~'~~.8,;::\,05/30/2o.Ø'2,:' k******'~'****$1:()a:,()Q,' '\11' ,:",',.,\,~,~,I.:,,',',,\:,':".".'\'1""""'."',"',:""\\,\".'::,:.;,"\,',"".,:".\,':,...',"',',,'.:,"\.~,".':.'~,',',':,~:,',',':"",,'\:::,:~,::.'.':,"'\::",',.::,.,':::,',',.:,',':,',:,. ',::i'¡\!:'i"'''ii'''\j!íi:~~~ After 90::~ ':' ¡" .:~,'",:,ii',',::,\'~,:"I,'",'"':;,',',,,',:1,1,:':\:,,',',:,'\."':',\',',1,\\',1' .' , ., \~\':':\I.:;" ¡,I[i~~" \1\'\\"\\~'.'::'::I',~;,~&,:r,¡,:;,;;;~" , ','"," , " ,\::\I~,;,:¡I~~,\',...,:t,.,¡1;~ìY\:i:"i::"::\:\\\\1::1,,, ",,\ \\\i~t,¡,.,:,I,~î 1':,"",,\"""0''',',''''''\''''' )~7~' ", ':'i\',"""\\,,\,' ,,",,,,",,",,, \"'" '.,";:(:'." '.:'.~:,i;::'\,::!:;:;':':;i:",::.·,\\I:'.. ,..... o· . C;¿J¡;::':' ·"":':';:::,!:::::,\;;\,~;'::;:::'::v"'\\ ~~,..... 5 ~ 20 2 ~ ? 0 ~ III i!~~~ \:.,(".'(.i:~I\ ~....'.\'..'(.:\'.'ì.,.\." . 'II I" ,- ",.".."''',.".""..."'',..,''''',..."..,.,,.,.,,''-~ 111008 300 ~8 crsuI .:l·~ ~~O~a? q.: .._.__...'...'n_'._ ....~....~~._..'_L...,..,.__..._.._ _~''''.''..._..___... _._~... ",_" ....._.._.__ _ h_. _. .... ....._. .__"'"..... _'''''''''" __I . _ .._ . _. _. _ _ ._..._ . _..~. __ . __ __ J...~u_. ... __ _. _._.. _. _h ,_. n_' ... _,...._. _h"""' "PLEASE DETACH AT PERFORATION ABOVE" "PLEASE DETACH AT PERFORATION ABOVE" Evergreen Operatina Corp 1401 17th Street, Suite 120"6 Denver CO 80202 j :V:I~GI~::N ! EVERGREEN RESOURCES, INC. ___. 11;J."fe~'~)i[')1 042802 JT-06 04/28/2002 i 12 Month Drilling Permit Fee 009195 . ,. ~ Vendor Check Number --' . 100.00 0.00 . ..... --~ <'~ ~ fi. ~~ 11..;3 L>;' ~ ::!t i.J. ~u' ~ ..~ '." . f, ~:~ ~..;;I~. .; :1 ~; ~.::;. ..~,.; . : ~. '. ~ Check Date: 05/30/2002 Check Amount ~ 1 00.00 ') TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/PARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME ~ L ~(I( 702-- I<6Lj PTD# CHECK WHAT APPLIES ADD-ONS (OPTIONS) MUL TI LATERAL (If API number last two (2) digits are between 60-69) PILOT (PH) "CLUE" The permit is for a new well bore 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(1), all records, data and logs acquired for the pilot hole must be clearly differentiated in both name (name on permit plus PH) and API number (50 70/80) from records, data and logs acquired for well (name on permit). SPACING EXCEP7 DRY DITCH SAMPLE Rev: 07/10/02 C\j ody\templates The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation or~r approving a spacing exception. f::1If -< ~ (Company Name) assumes the liabil~ 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/................-......-11'................."-.., WÊ~ 'f'~~~T'.,CH~ËC~.<~JST 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 WELL NAME DL Smith 1 PROGRAM Exploritory (EXP) ~ Development (DEV) GEOL AREA 820 UNIT No. Annular disposal para req nitial ClassfType 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-d rill , 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; testto .................... 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~ COT: WI C¡/{p/o'2- SFo;jÞ WGA:~tJt,Ar- MJW: DTS: () tØ~ ¿ Redril ~ervice (SER) _Well bore seg 51550 ON/OFF SHORE On Yes # 0083004898 No FEE LEASE surrounded by ADL374121 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 DL Smith 1 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 3 other gas wells). Second gas well in Sec. 1, 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 l 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 Cornhusker 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. Commentsll nstructions 8-28-02: Spacing exception required to produce the well. Inclination only survey required as this well is >500' from property line. SFD