The URL can be used to link to this page

Home My WebLink About203-113 06891 Seth Nolan Hilcorp Alaska, LLC GeoTech 3800 Centerpoint Drive Anchorage, AK 99503 Tele: 907 777-8308 Hikerp Alaska,1.111: Fax: 907 777-8510 E-mail: snolan@hilcorp.com DATE 03/09/2016 To: AOGCC R E C E'V`® Meredith Guhl E 333 W. 7th Ave. Ste#100 Anchorage, AK 99501 MAR 0 9 2016 DATA TRANSMITTAL AOGCC HAPPY VALLEY A-02 Elog data CD/Email: A l-NA-2_0H-LOGS 3/9/201612:55 PM LAS File 4,545 KB OB Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 R- eiv-. B Date: -ez; /( 1,47 • ) ) Image fa .oject Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. ~ 03 - ~ L3 Well History File Identifier Organizing (done) o Two-sided 1111111111111111111 o Rescan Needed 1111111111111111111 R~AN ¢ Color Items: D Greyscale Items: DIGITAL DATA OVERSIZED (Scannable) D Maps: D Other Items Scannable by a Large Scanner o Diskettes, No. D Other, No/Type: D Poor Quality Originals: OVERSIZED (Non-Scannable) o Other: o Logs of various kinds: NOTES: BY: '--M~ia~ D Other:: Date: I 0- j ~ D,S- /s/ w;J Project Proofing BY: CMariW _ III r\1;J Scanning Preparation BY: é Maria ) It Date: 1 ~ I~ oS- X 30 = j ~D + r-r = TOTAL PAGES f é}.... '7 Date: ~ ¡;J..- ó':;- (Count does not i~~;ude cover Shee?w, '0 /s/ Production Scanning Stage 1 Page Count from Scanned File: , &. ~ (Count does include cy6r sheet) Page Count Matches Number in Scanning Pre~aration: V YES BY: ~ Date: I a-/ ¡ ~ tJ!J' Stage 1 If NO in stage 1, page(s) discrepancies were found: YES 1111111111111111111 NO 'J ttt1 /s/ NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. ReScanned 1111111111111111111 BY: Maria Date: /s/ Comments about this file: Quality Checked 1111111111111111111 10/6/2005 Well History File Cover Page.doc RECEIVED STATE OF ALASKA ALA _OIL AND GAS CONSERVATION COMM ,ON FEB 0 6 2014 REPORT OF SUNDRY WELL OPERATIONS AOGCC 1.Operations Abandon U Repair Well Li Plug Perforations U Perforate Li Other [✓] Remove Capstring Performed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac ❑ Waiver ❑ Time Extension❑ Change Approved Program ❑ Operat.Shutdown❑ Stimulate-Other ❑ Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development Q Exploratory Li • 203-113 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,Alaska 99503 ° 50-231-20014-00 7.Property Designation(Lease Number): 8.Well Name and Number: • C-061590(Happy Valley Facility) Happy Valley A-02 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A • Deep Creek Field/HV Beluga&Tyonek Gas Pools 11.Present Well Condition Summary: Total Depth measured 4 10,225 feet Plugs measured 9,765 feet true vertical 9,812 feet Junk measured 9,344(fill) feet Effective Depth measured 9,344 feet Packer measured 2,988 feet true vertical 8,934 feet true vertical 2854 feet Casing Length Size MD TVD Burst Collapse Structural 78' 13-3/8" 78' 78' 3,450psi 1,950' Conductor Surface 1,046' 9-5/8" 1,046' 1,046' 6,870psi 4,750psi Intermediate Production 3,081' 7" 3,081' 2,936' 7,240psi 5,410psi Liner 7,224' 3-1/2" 10,215' 9,802' 10,160psi 10,540psi Perforation depth Measured depth See Attached Schematic 2 True Vertical depth See Attached Schematic s ''eeYY•NED MAY 9 2014 Tubing(size,grade,measured and true vertical depth) 3-1/2" 9.2#/L-80 3,015'MD 2,878'TVD 2,988'MD Packers and SSSV(type,measured and true vertical depth) ZXP Packer 2,854'TVD N/A N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A Treatment descriptions including volumes used and final pressure: N/A RBDMS . MAY 17 2014 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 171 0 0 126 Subsequent to operation: 0 0 0 0 125 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run N/A Exploratory❑ Development Q * Service ❑ Stratigraphic ❑ Daily Report of Well Operations X 16.Well Status after work: Oil ❑ . Gas O WDSPL❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP Li SPLUG Li 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: N/A Contact Paul Chan Email pchan(C7hilcorp.com Printed Name Paul Chan Title Operation Engineer Signature Phone 907-777-8333 Date 1/30/2014 3i_Form 10-404 Revised 10/2012z'�' Al Submit Original Only • . • in Happy Valley SCHEMATIC Well:HVA-02 PTD:203-113 IliIcor,Alaska,LLC API:50-231-20014-00 Tree cxn-2-1/2"Bowen cxn RT THF:16.38' i <, CASING DETAIL "' Size Type Wt/Grade TopBtm CONN/ID *. 13-3/8" Structural 68#,K-55 Surface 78' ' 9-5/8" Surface 47#,L-80 Surface 1,046' BTC/8.6881" . , 7" Surface 26#,L-80 Surface 3,081' BTC/6.184" 13-3/8" 3-1/2" Liner 9.2#,L-80 2,991' 10,215' IBT-Mod/2.992" @ 78' • TUBING DETAIL 9-5/8'@1,046' 3-1/2" Production 9.2#,L80 Surface 3,015' IBT/2.992" JEWELRY DETAIL # Depth Length ID OD Item 1. 2,511' 7.42' 2.992" 5.5" Chemical injection sidepocket mandrel (Matto SFO-IC-I) 2 3 with 1/4",0.049"wall SS chemical injection line =� N 2. 2,988' 14.09' 4.443" 5.967" Baker ZXP packer 4 5 3. 2,998' 6.7' 44.25" 5.5" Baker HMC hanger 7„@3,081 .'. 6 4. 3,001' 1.69' 2.992" 3.87" Locator sub(L-80 IBT) 5. 3,007' 9.8' 4.00" 5.00" Baker 80-40 seal assembly 6. 3,015' 0.50' 2.992" 3.99" Muleshoe 7. 6,733' 1.53' 2.813" 4.5" X-nipple 8. 7,853' 1.53' 2.813" 4.5" X-nipple 9. 8,918' 1.53' 2.813" 4.5" X-nipple X 7 10. 9,282' 1.53' 2.813" 4.5" X-nipple 11. 9,765' 1.52' 2.813" 4.5" X-nipple with Stuck XX plug T-10 Owen Oil Tools tubing patch(Leading edge 12. 9,075.5' 31.5' 2.330" 2.775" T-17 stepped/square) X 8 PERFORATION DATA Zone Top(MD) Btm(MD) Top(TVD Btm(TVD) SPF Status Date X 9 1-10 6,784' 6,824' 6,404 6,445 6 Open 10/20/2003 7,131' 7,171' 6,746 6,786 6 Open 9/30/2003 12 T-17 7,181' 7,191' 6,796 6,805 6 Open 9/30/2003 4111111' 280 1-80 9,050' 9,070' 8,641 8,661 6 - Isolated 11/10/08 T-90 9,318' 9,348' 8,908 8,938 6 Open 8/15/2003 X 10 1-110 9,534' , 9,564' 9,123 9,153 6 Open 8/15/2003 T-130 9,808' 9,866' 9,396 9,454 6 Isolated 8/14/2003 --- —j'---'=90 1-140 10,012' 10,052' 9,600 9,640 6 Isolated 8/14/2003 Tagged Fill ii,rk' @9,344' %/2011 M , ` T-110 CEMENT/OTHER DETAIL 11 Size _ Description 13-3/8" Driven T-130 9-5/8" Cmt w/54 bbl of 12.8 ppg lead and 28 bbl of 15.8 ppg tail,FIT=15.2 ppg EMW 7" 38 bbl of 12.8 ppg lead T-140 3-1/2" Cmt w/214 bbl of 12.0 ppg Litecrete and 17 bbl of 15.8 ppg tail,12.6 ppg EMW NOTE: 3-1/2"@ 10,215'ing Frac Stimulation: ■ T-80(9050'-9070')was frac stimulated with 25,000 lbs of 20/40 CarboLite in diesel-base frac fluid on 9/10/03 TD=10,225' PBTD=9,765' • T-90(9318'-9348')was frac stimulated with 60,200 lbs of 20/40 CarboLite in diesel-base frac MAX HOLE ANGLE=30°@ 2,474' fluid on 9/6/03 Max Doglegs=5.5 deg/100'at 1995' 3.2 deg/100'at 3031' Updated by TDF 1/30/2014 Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date HVA-2 50-133-20014-00-00 203-113 1/29/14 1/29/14 Daily Operations: 1/29/2014-Wednesday RU Dynacoil unit. Remove slips. Remove 3/8" capstring and from 9,304'. Shut in swab valve. Remove capstring master valve and pack-off. RD and return to production. 1/30/2014-Thursday No operations to report. 1/31/2014- Friday No operations to report. 2/1/2014-Saturday No operations to report. 2/2/2014-Sunday No operations to report. 2/3/2014- Monday No operations to report. 2/4/2014-Tuesday No operations to report. STATE OF ALASKA 04,1 ,11 • -- • ALASKOL AND GAS CONSERVATION COMMISSID REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon L Repair Well Li Plug Perforations L Stimulate LJ Other Lf Install Capillary String Performed: Alter Casing ❑ Pull Tubing ❑ Perforate New Pool ❑ Waiver ❑ Time Extension ❑ Change Approved Program ❑ Operat. Shutdown ❑ Perforate ❑ Re -enter Suspended Well ❑ 2. Operator Union Oil Company of California 4. Well Class Before Work: 5. Permit to Drill Number: Name: Development 0 Exploratory ❑ 203 -113 ' 3. Address: PO Box 196247, Anchorage, AK 99519 Stratigraphic ❑ Service ❑ 6. API Number: 50- 231 - 20014- 00• -- 7. Property Designation (Lease Number): 8. Well Name and Number: C- 061590 [Happy Valley Facility] Happy Valley A -02 9. Field /Pool(s): Deep Creek Field / HV Beluga & Tyonek Gas Pools 10. Present Well Condition Summary: Total Depth measured 10,225 feet Plugs measured 9,765 feet true vertical 9,812 feet Junk measured 9344 (fill) feet Effective Depth measured 9,344 feet Packer measured 2,988 feet true vertical 8,934 feet true vertical 2,854 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 78' 13 -3/8" 78' 78' 3,450 psi 1,950 psi Surface 1,046' 9 -5/8" 1,046' 1,046' 6,870 psi 4,750 psi Intermediate Production 3,081' 7" 3,081' 2,936' 7,240 psi 5,410 psi Liner 7,224' 3 -1/2" 10,215' 9,802' 10,160 psi 10,540 psi Perforation depth Measured depth 6,784'- 6,824'; 7,131'- 7,171'; 7,181'- 7,191'; 9318-9,348'; 9,534'- 9,564' �u True Vertical depth 6,113'- 6,445'; 6,746-6,786'; 6,795'- 6,805; 8,909' - 8,938'; 9,123'- 9,153' r A c a Tubing (size, grade, measured and true vertical depth) 3 -1/2" 9.2 #, L80 3,015' MD 2,878' TVD Packers and SSSV (type, measured and true vertical depth) Baker ZXP Packer 2,988' MD (2,854' TVD) N/A N/A 11. Stimulation or cement squeeze summary: J. • ' K' NUT Intervals treated (measured): 1, tv 3 0 2li N/A Treatment descriptions including volumes used and final pressure: C,i. ,mission N/A i$ -t` & t . r te „ 8 �1 t 12. RepresentatirAgitage Production or Injection Data Oil -Bbl Gas -Mcf Water -Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 302 3 0 psi 255 psi Subsequent to operation: 0 320 2 0 psi 256 psi 13. Attachments: 14. Well Class after work: Copies of Logs and Surveys Run N/A Exploratory [] Development 0 - Service ❑ Stratigraphic ❑ Daily Report of Well Operations Y 15. Well Status after work: Oil ❑ Gas Q - WDSPL ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP ❑ SPLUG ❑ 16. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: N/A Contact Chris Kanyer Phone 263 -7831 Printed Name Timothy C. Brandenburg , Title Drilling Manager Signature % _ r�I Phone 276 -7600 Date 6/28/2011 " BDMS JUN 3 pqo1� . Form 10 -404 Revised 10/2010 L Submit Original Only ' hevron • • Happy Valley Happy Valley HVA -02 Well HVA -02 1140 Last Updated 6/28/11 Tree cxn - 2 -1/2" Bowen cx n RT- THF:16.38° Casing and Tubing Detail j ' 1 1 ) - Size Type Wt/ Grade Top Btm CONN /ID Cement/Other 13 -3/8 Structural 68 #, K -55 Surface 78' Driven 1 BTC/ Cmt w/ 54 bbl of 12.8 ppg L 9 -5/8" Surface 47 #, L -80 Surface 1,046' 8.6881" lead and 28 bbl of 15.8 ppg 13 -3/8" tail, FIT = 15.2 ppg EMW @ 78' BTC / Q 7" Surface 26 #, L -80 Surface 3,081' 38 bbl of 12.8 ppg lead 6.184" 9-5/8" @1,046' IBT -Mod/ Cmt w/ 214 bbl of 12.0 ppg 3 -1/2" Liner 9.2 #, L -80 2,991' 10,215' 2.992" Litecrete and 17 bbl of 15.8 ppg tail, 12.6 ppg EMW Tubing 3 -1/2" Production 9.2 #, L80 Surface 3,015' IBT/ Annulus loaded with 7.3 ppg 2.992" base oil 2 3 3/8" Capstring 0.17 #, 2205 Duplex SS capillary string run to 9,304' Dyna Coil Measurement (9,333'SLM) ~- 5 4 Jewelry Detail 7" @3,081 G 6 # Depth Length ID OD Item 1. 2,511' 7.42' 2.992" 5. 5" Chemical injection sidepocket mandrel (Macco SFO -1C -1) with 1/4 ", 0.049" wall SS chemical injection line 2. 2,988' 14.09' 4.443" 5.967" Baker ZXP packer 1 7 3. 2,998' 6.7' 44.25" 5.5" Baker HMC hanger T -10 4. 3,001' 1.69' 2.992" 3.87" Locator sub (L -80 IBT) 5. 3,007' 9.8' 4.00" 5.00" Baker 80-40 seal assembly T -17 6. 3,015' 0.50' 2.992" 3.99" Muleshoe X 8 — 7. 6,733' 1.53' 2.813" 4.5" X- nipple 8. 7,853' 1.53' 2.813" 4.5" X- nipple — ( 9 _h— 9. 8,918' 1.53' 2.813" 4.5" X- nipple 12 10. 9,282' 1.53' 2.813" 4.5" X- nipple T -g0 11. 9,765' 1.52' 2.813" 4.5" X- nipple with Stuck XX plug 10 12. 9,075.5' 31.5' 2.330" 2.775" Owen Oil Tools tubing patch (Leading edge stepped /square) ,__ _L.., .__.___ r,c"Z T90 Tagged Fill Perforation Data @ 9,344' SLM y T -110 6/1/2011 ZONE TOP BTM Shot Condition 2 11 T -10 6,784' 6,824' 6 10/20/03 T-17 7,131' 7,171' 6 9/30/03 1-130 7,181' 7,191' 6 9/30/03 T -80 9,050' 9,070' 6 9/9/03 Isolated 11/10/08 T -140 T -90 9,318' 9,348' 6 8/15/03 T -110 9,534' 9,564' 6 8/15/03 T -130 9,808' 9,866' 6 8/14/03 (isolated) 3-1/2" @,o,zs' [`� T -140 10,012' 10,052' 6 8/14/03 (isolated) TD = 10,225' PBTD = 9,765' MAX HOLE ANGLE = 30 @ 2,474' NOTE: Max Doglegs = 5.5 deg/100' at 1995' Frac Stimulation: • 3.2 deg /100' at 3031' T -80 (9050' - 9070') was frac stimulated with 25,000 lbs of 20/40 CarboLite in diesel -base frac fluid on 9/10/03 • T -90 (9318' - 9348') was frac stimulated with 60,200 lbs of 20/40 CarboLite in diesel -base frac fluid on 9/6/03 HVA -02 Actual Well Schematic 6- 28- 11.doc Updated by TDF 6 -28 -11 ' Chevron • fto Chevron - Alaska Daily Operations Summary Well Name Legal Well Name Lease Surface UWI ChevNo Original RKB (ft) Water Depth (ft) HV -A02 HAPPY VALLEY A -2 5023120014 HL3454 23.90 Jobs • Primary Job Type Job Category Objective Actual Start Date Actual End Date Artificial Lift Revision Well 5/28/2011 Services Primary Wellbore Affected Wellbore UVVI Well Permit Number HV -A02 502312001400 2031130 Daily Operations 5/28/2011 00:00 - 5/2912011 00:00 Operations Summary RU slickline, pressure test lubricator to 250psi low /2500psi high. RIH w/ 2.25" GR and tag fill at 9,343' SLM RKB. RIH w/ pressure temperature log to 9,342', POOH. RD slickline. 6/1/2011 00:00 - 612/2011 00:00 Operations Summary R/U Pollard Wireline and attempt to bail fill out of well. No success with bailer runs, possible obstruction downhole. 6/212011 00:00 - 6/3/2011 00:00 Operations Summary MIRU Dyna Coil Unit. Stab 3/8" .049" 2205 SS capillary line into dual barrier pack -off. Make up BHA components. Install pack -off and pressure test against swab valve 250psi low /3,000psi high. RIH with 3/8" capillary string and tag fill at 9315' Dyna Coil measurement (9344'SLM), pulled up hole to 9304' Dyna Coil measurement (9333' SLM) and install slips on capillary line. Install capillary line master valve, set capillary string spool next to well, & installed chemical injection pump. RD Dyna Coil Unit. Turn well over to production. • • • Page 1 of 1 Maunder, Thomas E (DOA) From: Kanyer, Christopher V [Chris.Kanyer@chevron.com] Sent: Monday, February 09, 2009 12:58 PM To: Maunder, Thomas E (DOA) Subject: RE: HV A-02 (203-113) Attachments: HVA-02 Actual Well Schematic 12-02-08.doc I hope this comes out clearer. Let me know if you need anything else. Chris Kanyer •• Technical Assistant Wellbore Maintenance Team OfFce: (907) 263-7831 Cell: (907) 250-0374 Chevron North America Exploration and Production Midcontinent/Alaska SBU 3800 Centerpoint Dr, Suite 100 Anchorage, AK 99503 From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Monday, February 09, 2009 12:34 PM To: Kanyer, Christopher V Subject: HV A-02 (203-113) Chris, I am belatedly reviewing the 404 submitted for the patch work completed in this well November. In the title block on the drawing submitted the well name is black print in a dark blue background. Can you edit the drawing to use a different background? That color combination does not copy well when incorporated into our on-line well files. Thanks in advance. Sending the replacement by email is fine. Tom Maunder, PE AOGCC 2/9/2009 STATE OF ALASKA ALAS OIL AND GAS CONSERVATION COMM~ION REPORT OF SUNDRY WELL OPERATIONS ~~~` /o?-IOC 1. Operations Abandon Repair Well Plug Perforations ~ Stimulate Other ~ InstalLtubing patch Performed: Alter Casing ^ Pull Tubing^ Perforate New Pool ^ Waiver^ Time Extension^ Change Approved Program ^ Operat. Shutdown^ Perforate ^ Re-enter Suspended Well ^ 2. Operator Union Oil Company of California 4. Well Class Before Work: 5. Permit to Drill Number: Name: Development^ - Exploratory^ 203-113 3. Address: P.O. Box 196247, Anchorage, AK 99519 Stratigraphic^ Service^ 6. API Number: 50-231-20014-00 - 7. KB Elevation (ft): 9. Well Name and Number: 23.9' Happy Valley A-02 - 8. Property Designation: 10. Field/Pool(s): , C-061590 [Happy Valley Facility] Deep Creek / HV Beluga / Tyonek Gas 11. Present Well Condition Summary: Total Depth measured 10,225' _ feet Plugs (measured) 9,765' true vertical 9,812' - feet Junk (measured) 9,399' (fill) Effective Depth measured 9,399' feet true vertical 8,989' feet Casing Length Size MD TVD Burst Collapse Structural Conductor 78' 13-318" 78' 78' 3450 psi 1950 psi Surface 1,046' 9-5/8" 1,046' 1,046' 6870 psi 4750 psi Intermediate Production 3,081' 7" 3,081' 2,936' 7240 psi 5410 psi Liner 7,231' 3-1/2" 10,222' 9,809' Perforation depth: Measured depth: See Attached Schematic True Vertical depth: See Attached Schematic Tubing: (size, grade, and measured depth) 3-1/2" 9.2# L-80 3,015' Packers and SSSV (type and measured depth) Baker ZXP Packer / N/A 2,998' / N/A 12. Stimulation or cement squeeze summary: N/A Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 2 0 0 315 Subsequent to operation: 0 400 7 0 315 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run N/A Exploratory^ Development ^~ Service ^ Daily Report of Well Operations X 16. Well Status after work: Oil^ Gas ^~ ~ WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 308-300 Contact Marcus Barbee 263-7605 Printed Name Timothy C. Brandenburg Title Drilling Manager Signature ~ ._~ =.~.-'~ " Phone 263-7600 Date 12/2!2008 ~ ~~ ~. _ , T Form 10-404 Revised 04/2006 c~ y ~'~ - cc~~ 3 ~~ Su~bm t O iginal Only r~ ,,.[~~ ~~ ~~ 3! Casing and Tubing Detail Size Type Wt/ Grade Top Btm CONN/ID Cement/Other 13-3/8" Structural 68#, K-55 Surface 78' Driven 9-5/8" Surface 47#, L-80 Surface 1,046' BTC/ 8 6881„ Cmt w/ 54 bbl of 12.8 ppg lead and 28 bbl of 15.8 ppg tail, FIT = 15.2 EMW 7" Surface 26#, L-80 Surface 3,081' BTC / 6.184" 38 bbl of 12.8 ppg lead 3-1/2" Liner 9.2#, L-80 2,991' 10,222' IBT-Mod/ 2'992" Cmt w/ 214 bbl of 12.0 ppg Litecrete and 17 bbl of 15.8 tail, 12.6 EMW Tubing 3-1/2" Production 9.2#, L80 Surface 3,015' IBT/ 2.992" Annulus loaded with 7.3 ppg base oil Jewelry Detail Ak Depth Length ID OD Item I. 2,511' 7.42' 2.992" 5. 5" Chemical injection sidepocket mandrel (Macro SFO-IC-I) with 1/4", 0.049" wall SS chemical injection line 2. 2,988' 14.09' 4.443" 5.967" Baker ZXP packer 3. 2,998' 6.7' 44.25" 5.5" Baker HMC hanger 4. 3,001' 1.69' 2.992" 3.87" Locator sub (L-80 IBT) 5. 3,007' 9.8' 4.00" 5.00" Baker 800 seal assembly 6. 3,015' 0.50' 2.992" 3.99" Muleshoe 7. 6,733' 1.53' 2.813" 4.5" X-nipple 8. 7,853' 1.53' 2.813" 4.5" X-nipple 9. 8,918' 1.53' 2.813" 4.5" X-nipple l0. 9,282' 1.53' 2.813" 4.5" X-nipple l 1. 9,765' 1.52' 2.813" 4.5" X-nipple with Stuck XX plug 12. 9,075.5' 31.5' 2.323" 2.775" Owen Oil Tools tubing patch Perforation Data ZONE TOP BTM Shot Condition T-10 6,784' 6,824' 6 10/20/03 7,131' 7,171' 6 9/30/03 T-17 7,181' 7,191' 6 9/30/03 T-80 9,050' 9,070' 6 9/9103 Isolated 11/10/08 T-90 9,318' 9,348' 6 8/15/03 T-110 9,534' 9,564' 6 8/15/03 T-130 9,808' 9,866' 6 8/14/03 isolated T-140 10,012' 10,052' 6 8/14/03 isolated TD =10,225 PBTD = 9,765' MAX HOLE ANGLE = 30° ~ 2,474' 1\OTF.: Max Doglegs = 5.5 deg/100' at 1995' : rac Stimulation: 3.2 deg/100' at 3031' T-80 (9050' - 9070') was frac stimulated with 25,000 Ibs of 20/40 CazboLite in diesel-base frac fluid on 9/10/03 • T-90 (9318' - 9348') was frac stimulated with 60,2001bs of 20/40 CarboLite in diesel-base frac fluid on 9/6/03 HVA 02 Actual Well Schematic 12 02 08 doc Updated by CVK Tree an - 2-112' Bowen cm RT-T1F~ 1638' r~ Chevron Chevron -Alaska Daily Operations Summary Well Name Legal Well Name Lease Surface UWI ChevNo Original RKB (ft) Water Depth (ft) HV-A02 HAPPY VALLEY A-2 5023120014 HL3454 23.90 Jobs Primary Job Type Job Category Objective Actual Start Date Actual End Date Water Shutoff Workover Isolate water entry 10/22/2008 Primary Wellbore Affected Wellbore UWI Well Permit Number HV-A02 5023120014 -00 2031130 _ ___ _ _ Dail O erations _ 10122/2008 00:00 - 10/2312008.00:00 _ _.__ s -- _ _- Operations Summary RU wireline. Pressure tested wireline valves & lubricator 250 psi low/2500 psi high. Ran 2.7,9" gauge ring to fill at 9.357' RKB WLM. Ran 2.5"x5' bailer, began bailing, no progress made. Ran 2.5" lead impression block, tagged fill at 9,357' RKB WLM, LIB scrapped on sides and some pauk marks on face. Sand (fill) packed real/ hard. 10/23/2008 00:00 -:10/2412008 00:00 _ _ _ _ ___ Operations Summary Broke fill loose and bailed 10' of Fill (Prat Sand) End of day tag 9367'. 1.0/2412008 00:00 -10/2512008 00:00 Operations Summary Bailed sand from 9367' RKB (slm) to 9395' RKB (slm). pressure well up to 870 psi and tfY and push fluid back into formation before setting patch. _ -- - __ 10/25/2008 00:00 -1012612008 00:00 Operations Summary Ran GR determined fluid level at 3180' RKB, And tagged fill at 9399' 10126/2008.00:00 - 10/27/2008 00:00 ---- - -- -- Operations Summary Ran in well and brushed all X-nipples, 2.8" GR to 9397' RKB (slm). Dummy patch to 2nd X-Nipple at 7851' RKB (slm), pull out of well move to HV-A08. - - ___.__ 10/28/2008 00:00 -1012912008 00:00 __ - --__ - Operations Summary Rig up Wireline, And run in well with 2 78" Dummy patch to 9399' RKB (slml Patch passed rough all 4 X-NiODles with no nrobl~ms, 11/9/2008 00:00 - 11/10/2008 00:00 _ _ _ _ __ Operations Summary Rig up E-Line and set 31.5' Owens atch across T-80 sands at 9050'- 9070'. Set at 9 075.5'. 11/17/2008 00:00 - 11/18/2008 00:00 _ _ _ _ _ Operations Summary Site survey with CTU supervisor for tomorrows nitrogen job. Contacted AOGCC (Jim Regg) for 24 hour BOPE test notice, State witness was waived. - --- ____ 11/18/2008 00:00 - 11/19/200800:00 __ _ _ _ - ___ Operations Summary Spot SWS Coi{ Tubing and Rig up. 11119/2008 00:00 - 11/20/2008 00:00 Operations Summary Test BOPE, hard line & choke (all passed) RIH to 3,000' & come on line with nitrogen (unable to pump through CT) continue in to 9,000' still unable to pump. Pull out of the hole and tarp the reel and put heaters on reel. stand down for the night __ _- __ - 11/20/2008 00:00 -1112112008 00:00 _ _ _ ' __ _ Operations Summary Clear Coil tubing of ice plug, RIH and Nitro en lift 58 BBLs of water from well. Turned well over to roduction ! ~ C~'Y£'V1'Ot'1 Debra Oudean Chevron North America Exploration and Production - ~ Technical Assistant 909 W. 9th Avenue .., Anchorage, AK 99501 ~'~ Tele: 907 263 7889 Fax: 907 263 7828 E-mail: oudeand@chevron.com September 29, 2008 To: AOGCC Howard Okland 333 W. 7th Ave. Ste#100 Anchorage, AK 99501 ~~ r ~ .. CD'# WELL LOG TYPE NOTES 1 TBU K-18 K-18RD VISION SERVICES_RM.LAS LAS K-18RD Final Survey.doc doc ~ ~K-18RD Final Survey.txt txt 3 IVision Density Neutron-CDR and Log _K-18RD.pds Pds ~EOW Letter Unocal King Salmon K-18RD.doc ' Doc } f ~Pdsview20kit.exe Exe z 2 ASCU 42-05X iSCU 42-05X TCP Guns Correlation 16Ju106.pdf ' Pdf ~ °ISCU 42-05X TCP Guns Correlation 16Ju106.pds ' Pds _ 3 ASCU 42-05X ~DML DATA I Dbraw.dbf DBF Dbraw.mdx MDX SCU_42-05X.dbf _. DBF 3 SCU 42-05X. hdr ' HDR _ f SCU_42-05X.mdx M MDX SCU 42-05X 20060625.mdx : MDX { _ _ SCU_42-05X_20060710.mdx ': MDX SCU_42-05X_20060711.mdx ! MDX SCU_42-05X SCL.DBF DBF SCU_42-05X_SCL.MDX MDX SCU_42-05X TVD.DBF -. DBF SCU_42-05X_TVD.MDX ' MDX SCU_42-05X_xr.DBF DBF SCU 42-05X xr.DBF MDX ; _ FINAL WELL REPORT SCU 42-05X Well Report.pdf , PDF I SCY 42-05X Well Report.doc j DOC A LAS FILE ~ t SCU 42-05X.dat a DAT { ' LOG PDF FILES I SCU 42-05X DRILLING MD.PDF - PDF j SCU 42-05X DRILLING TVD.PDF ' PDF F SCU 42-05X LWD COMBO MD.PDF PDF SCU 42-05X LWD COMBO TVD.PDF PDF SCU 42-05X MUDLOG MD.PDF PDF SCU 42-05X MUDLOG TVD.PDF PDF ~~- bt~- 'I'3~ lad ~p3~-~~ ~~ ~ ~ ~ ~ ~ ~~~ P ~~ ~/ Please acknowledg receipt by signing and returning one copy of this transmittal or FAX to 907 263 7828. A Received By: ~- Date: • ~~lltlfi'Oti ®ebra Oudean Chevron !North America Exploration and Production w~ "~ ~ Technical Assistant 909 W. 9th Avenue ~"``' ' Anchorage, AK 99501 "° Tele: 907 263 7889 Fax: 907 263 7828 E-mail: oudeand@chevron.com IcD #~ WELL ~ ~ ~ LOG TYPE ~NOTES~ _ ~ _ ___ ~ MORNING REPORTS _ 20060623.htm ;HTML 20060624.htm ',HTML 20060625.htm ''HTML : 20060626.htm HTML 20060627.htm ;HTML 20060628.htm EHTML 20060629.htm !HTML 20060630.htm 20060701.htm HTML HTML _ 20060702.htm !HTML 20060703.htm (HTML 20060704.htm =HTML 20060705.htm ;HTML 20060707.htm HTML 20060708.htm ;HTML !_ § 20060709.htm HTML 20060710.htm !HTML 20060711.htm HTML f 20060712.htm 'HTML 20060713.htm HTML ;REMARKS FILE } SCU 42-05X REMARKS.LAS _ ... .LAS 4 _ =SCU 42 05X ASCU 42-05X USIT 15JUL06.PDF 'PDF ` ;SCU 42-05X USIT 15JUL06.PDS _ __ ~PDS ; 5 ;'SCU 42-05X SCU42-05X EOW Report.pdf _ ~PDF ISurvey Text.txt„ ~TXT 6 'SCU 42-05X SOH WIRELINE LOGS DLIS AIT_DSI_TLD_MCFL_020PUC.DLIS ~ 7 -=SCU 42-05X OH WIRELINE LOGS DLIS AIT_DSI_TLD_MCFL_021PUC.DLIS AIT_DSI TLD_MCFL_022PUC.DLIS __ __ - .__ _ -- _ ~ __ 8 r_ _.._ _. ._ _ _ --• ;SCU 42 05X €OH WIRELINE LOGS _ -'-__ __._.____ __ ___.__-v___.._ ~.__._._ _ ; Borehole Profile.PDS ~PDS ' Dsi print.PDS ~PDS DSI TVE Print.PDS :IPDS PEX TVD print.PDS IPDS ~' Tcom print.PDS ~PDS ~. 9 'HV 2 ;PRESS TEMP LOG FINAL PBMS PDS ~ ~PDS ~ . ~3. 1,13 PSP_066PUP.DLIS DLIS _ ~ PSP_066pup.las ! iLAS ~ !'dap 10 _ HV 2 POWERJET EJ ~ 1'~.ab' COMBINED PERF.PDS PERFO 050LUP.DLIS PDS ?DLIS l,~a~ _ PERFO_051LUP.DLIS DLIS !'~aoel PERFO 069LUP.DLIS ,DLIS l'3~2Z~5° PERFO 070LUP.DLIS DLIS 11 IHV 2 =POWERJET PJ 2006 Combined.PDS IPDS Please acknowledge receipt by signing and returning one copy of this transmit tal or FAX to 907 263 7828. Received By: Date: ' ' " ~hf'Vt Qi 1 De~ a Oudean Chevron North AmLFica Exploration and Production ..~- Technical Assistant 909 W. 9th Avenue ~..;.: ~ Anchorage, AK 99501 Vy`'" Tele: 907 263 7889 Fax: 907 263 7828 E-mail: oudeand@chevron.com CD # WELL LOG TYPE NOTES Combined.PDS FMA FMA PERFO 005PUP.DLIS DLIS _ PERFO_005PUP.DLIS.FMA E PERFO 006LUP.DLIS FMA DLIS _ PERFO_006LUP.DLIS.FMA 'FMA PERFO_007LUP.DLIS DLIA PERFO_007LUP/DLIS.FMA _,FMA - 12 HV 2 IPOWERJET_BP - I PERFOCombined.PDS PDS PERFOCombined.PDS.FMA :.FMA ~ ~ PlugCombined.PDS PDS __ PlugCombined.PDS.FMA FMA 13 HV 2 ~SCMT_HV2 ~ Combined.PDS PDS SCMT_PSP_007PUP.DLIS DLIS s SCMT_PSP_007PUP.LAS :LAS SCMT PSP 007PUP NEW. TXT TXT _ _ _ SCMT PSP 008PUP.DLIS DLIS Le t me know if there is anything you need. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 263 7828. Received By: Date: • ~~i~a~~ ~~ G~~a~~a ALA3SA OIL A1QD GAS CO1~T5ERQATIOI~T COMl-IISSIOI~T Timothy Brandenburg Drilling Manager UNOCAL • SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 PO Box 196247 Anchorage AK 99519 ~ ~ .-. ~ ~, ~J a Re: Deep Creek Field, Beluga/Tyonek Gas Pool, Happy Valley A-2 Sundry Number: 308-300 „:~~~~~ AllG ~ X008 Dear Mr. Brandenburg: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. Chair DATED this 2_~ day of August, 2008 Encl. ,~ ..G~~ R (~ orJ ~~L1o STATE OF ALASKA v~Sd~' a~~"~~~~ O ALA OIL AND GAS CONSERVATION COMI111~510N t~~- APPLICATION FOR SUNDRY APPROVALS(a~ AUG 2 2 2008 20 AAC 25.280 ~ 1. Type of Request: Abandon^ Suspend ^ Operational shutdown ^ Perforate Q WaivehOfaCje OtherO Alter casing^ Repair well ^ Plug Perforations (G~'7p~imulate ^ Time Extension ^ Install tubing Change approved program^ Pull Tubing^ Perforate New Pool ^ ~"~ Re-enter Suspended Well ^ / patches 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Union Oil Company of California Development ^ ,/ Exploratory ^ 203-113 ' 3. Address: Stratigraphic ^ Service ^ 6. API Number: PO Box 196247, Anchorage, AK 99519 50-231-20014-00 ~ 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No ^~ Ha Valle A-2 ~ 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): C-061590 Ha Valle Facili ~ 23.9' Dee Creek / HV Belu a / T onek Gas 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 10,225' ~ 9,812' ~ 9,350% 8,940', 9,765' ~ 9,350' (fill) Casing Length Size MD TVD Burst Collapse Structural Conductor 78' 13-3/8" 78' 78' 3450 psi 1950 psi Surface 1,046' 9-5/8" 1,046' 1,046' 6870 psi 4750 psi Intermediate Production 3,081' 7" 3,081' 2,936' 7240 psi 5410 psi Liner 7,231' 3-1/2" 10,222' 9,809' Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached Schematic See Attached Schematic 3-1/2" 9.2# L-80 3,015' Packers and SSSV Type: Packers and SSSV MD (ft): Baker ZXP Packer / N/A 2,998' / N/A 13. Attachments: Description Summary of Proposal 0 14. Well Class after proposed work: Detailed Operations Program ^ BOP Sketch ^ Exploratory ^ Development Q Service ^ 15. Estimated Date for 8/29/2008 16. Well Status after proposed work: Commencing Operations: Oil ^ Gas^ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Steve Tyler 263-7649 Printed Name Timothy C. Brandenburg Title Drilling Manager Signature one~6-7600 Date 8/20!2008 ~ COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ ~~-~~~~ S~ v~CG Other: ~ ~ ~"`©~ Subsequent Form Required: ~..~.,^~ d/%~~~ APPROVED BY J ~ z ~ Approved by: COMMISSIONER THE COMMISSION Date: ~ ,. ~ ~F~ our ~ Yx~ zo~a Form 10-403 Revised 06/200 R' ~ ~ 9\t ~ ~ Submit in Duplicate @Vf O Happy Valley Happy Valley HVA-02 Well HVA-02 Wellbore Schematic Last Completed 10/6/03 ~~ ~~ •sB" ~ r' ~~~ wnchar 31. TD =10,225' PBTD = 9,765' MAX HOLE ANGLE = 30° @2,474' Max Doglegs = 5.5 deg/100' at 1995' 3.2 deg/100' at 3031' Casing and Tubing Detail Size Type Wt/ Grade Top Btm CONN/ID CementlOther 13-3/8" Structural 68#, K-55 Surface 78' Driven 9-5/8" Surface 47#, L-80 Surface 1,046' BTC/ 8 6881„ Cmt w/ 54 bbl of 12.8 ppg lead and 28 bbl of 15.8 ppg tail, FIT = 15.2 EMW 7" Surface 26#, L-80 Surface 3,081' BTC / 6.184" 38 bbl of 12.8 ppg lead 3-1/2" Liner 9.2#, L-80 2,991' 10,222' IBT-Mod/ 2 992„ Cmt w/ 214 bbl of 12.0 ppg Litecrete and 17 bbl of 15.8 tail, 12.6 EMW Tubing 3-1/2" Production 9.2#, L80 Surface 3,015' IBT/ 2.992" Annulus loaded with 7.3 ppg base oil Jewelry Detail # Depth Length ID OD Item 1. 2,51 I' 7.42' 2.992" 5. 5" Chemical injection sidepocket mandrel (Macco SFO-IC-I) with 1/4", 0.049" wall SS chemical injection line 2. 2,988 14.09' 4.443" 5.967" Baker ZXP packer 3. 2,998' 6.7' 44.25" 5.5" Baker HMC hanger 4. 3,001' 1.69' 2.992" 3.87" Locator sub (L-80 IBT) 5. 3,007' 9.8' 4.00" 5.00" Baker 800 seal assembly 6. 3,015' 0.50' 2.992" 3.99" Muleshoe 7. 6,733' 1.53' 2.813" 4.5" X-nipple 8. 7,853' 1.53' 2.813" 4.5" X-nipple 9. 8,918' 1.53' 2.813" 4.5" X-nipple 10. 9,282' 1.53' 2.813" 4.5" X-nipple 11. 9,765 1.52' 2.813" 4.5" X-nipple with Stuck XX plug v0"1-F,: Frac Stimulation: • T-80 (9050' - 9070') was frac stimulated with 25,000 Ibs of 20/40 CarboLite in diesel-base frac fluid on 9/10/03 • T-90 (9318' - 9348') was frac stimulated with 60,200 Ibs of 20/40 CarboLite in diesel-base frac fluid on 9/6/03 HVA-02 Actual Well Schematic 8-18-08.doc Updated by CVK Tree cxn - 2-1/7' Bowen cxn RT-TFF~ ~fi38' evro Happy Valley Happy Valley HVA-02 Well HVA-02 ,- _t PCO~OSeCI Last Completed 10/6/03 13--3/8" ~ ~' t .518" @1,046' r' ~a,oai Tree cxn - 2-1/7' BoKen cxn _ RT•TFF: 76.38' - 2 Tagged Fill ~ 9,350' SLM May O6 u nchanged snce May 04 3.7/z' ~ to,zzz 1 3 a s s T-10 T-17 8 9 T-80 10 T-90 T-110 11 T-130 T-140 TD =10,225' PBTD = 9,765' MAX HOLE ANGLE = 30° @2,474' Max Doglegs = 5.5 deg/100' at 1995' 3.2 deg/100' at 3031' Casing and Tubing Detail Size Type Wt/ Grade Top Btm CONN/ID Cement/Other 13-3/8" Structural 68#, K-55 Surface 78' Driven 9-5/8" Surface 47#, L-80 Surface 1,046' BTC/ 8 6881„ Cmt w/ 54 bbl of 12.8 ppg lead and 28 bbl of 15.8 ppg tail, FIT = 15.2 EMW 7" Surface 26#, L-80 Surface 3,081' BTC / 6.184" 38 bbl of 12.8 ppg lead 3-1/2" Liner 9.2#, L-80 2,991' 10,222' IBT-Mod/ 2 992„ Cmt w/ 214 bbl of 12.0 ppg Litecrete and 17 bbl of 15.8 tail, 12.6 EMW Tubing 3-1/2" Production 9.2#, L80 Surface 3,015' IBT/ 2.992" Annulus loaded with 7.3 ppg base oil Jewelry Detail # Depth Length ID OD Item 1. 2,511' 7.42' 2.992" 5. 5" Chemical injection sidepocket mandrel (Matto SFa1C-I) with 1/4", 0.049" wall SS chemical injection line 2. 2,988 14.09' 4.443" 5.967" Baker ZXP packer 3. 2,998' 6.7' 44.25" 5.5" Baker HMC hanger 4. 3,001' 1.69' 2.992" 3.87" Locator sub (L-80 IBT) 5. 3,007' 9.8' 4.00" 5.00" Baker 80-40 seal assembly 6. 3,015' 0.50' 2.992" 3.99" Muleshoe 7. 6,733' 1.53' 2.813" 4.5" X-nipple 8. 7,853' 1.53' 2.813" 4.5" X-nipple 9. 8,918' 1.53' 2.813" 4.5" X-nipple 10. 9,282' 1.53' 2.813" 4.5" X-nipple 11. 9,765 1.52' 2.813" 4.5" X-nipple with Stuck XX plug Perforat ion Data ZONE TOP BTM Shot Condition T-10 6,784' 6,824' 6 10/20/03 T 17 7,131' 7,171' 6 9/30/03 - 7,181' 7,191' 6 9/30/03 T-80 9,050' 9,070' 6 9/9/031solate T-90 9,318' 9,348' 6 8/15/03 Pro osed Re erf T-110 9,534' 9,564' 6 8/15/03 T-130 9,808' 9,866' 6 8/14/03 isolated T-140 10,012' 10,052' 6 8/14/03 isolated NOTE: Frac Stimulation: ^ T-80 (9050' - 9070') was frac stimulated with 25,000 Ibs of 20/40 CarboLite in diesel-base frac fluid on 9/10/03 ^ T-90 (9318' - 9348') was frac stimulated with 60,200 Ibs of 20/40 CarboLite in diesel-base frac fluid on 9/6/03 HVA-02 Proaosed Well Schematic 8-19-08.doc Updated by CVK Ghevrort • • Happy Valley Well #HVA-02 8/19/08 OBJECTIVE: • Clean out and isolate T-80 sand with tubing patches and reperforate T-90 sand. PROCEDURE SUMMARY: 1 MIRU Slickline. RIH w/ Gauge Ring tag fill. Note fluid level. RIH and gauge tbg for 30' Tbg Patch to 9150'. 2 RIH w/ Pressure/Temp Tool to tagged fill depth. POOH. RD. 3 MIRU Eline. PUMU Owens Tbg Patch. RIH set same to isolate T-80 Sand (9050'- 9070'). RD Demobe Eline. 4 MI/Spot 1 '/4" CTU, tanks and accessory equip. 5 RU CTU. NU BOPE. Test same. Fill out Acceptance Checklist 6 RIH with nozzle. Blow well dry. Trap pressure. POOH. 7 RD/Demobe CTU. Contingency (Based on production results from above work). • MIRU Slickline. RIH w/ 2" Dummy Gun to top of fill. POOH. RD. • MUSpot and RU Eline. Test BOPE's • RIH reperforate T-90 Zone (9,318'- 9,348'). May entail bailing runs to get to depth. 8 Turn well over to production. HVA-02 REVISED BY: CVK 8-19-08 Page 1 of 2 • ~ Maunder, Thomas E (DOA} From: Lopez, Keith [lopk@chevron.com] Sent: Monday, August 25, 2008 2:46 PM To: Maunder, Thomas E (DOA) Cc: Tyler, Steve L; LONGDEN, MARKHAM R; Whitacre, Dave S Subject: RE: Happy Valley "Patching" This summary is provided per your request below: Happy Valley A-8 -The water rate is currently restricting the gas flow from this well and is on the verge of loading the well and killing it. Reducing or eliminating the water rate is necessary for continued production. We have multiple historic and recent production logs that do not lend aclear-cut answer as to which zone is making the large majority of the water. We have taken the indications from these logs, offset production tests, the well history timeline, and the production data to create the remediation plan. We believe that this plan gives us the best potential to reduce the water rate while limiting potential gas loss. .~ Happy Valley A-2 -The T80 tested gas after initial perforating but produced a large amount of water after the subsequent fracture stimulation. This volume of fluid has restricted the gas flow from the deeper zones since this completion. The goal of this work is to remediate the water and attempt to produce the deeper Tyonek zones. If you have anymore questions regarding this work please let me know. Keith Lopez Chevron Petroleum Engineer Cook Inlet Gas Team 907-263-7653 Office 907-227-7748 Cell 907-263-7847 Fax 909 West 9th Avenue Anchorage, AK 99501 From: Tyler, Steve L Sent: Monday, August 25, 2008 11:45 AM To: Lopez, Keith Subject: FW: Happy Valley "Patching" FYI From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Monday, August 25, 2008 10:18 AM To: Tyler, Steve L Subject: RE: Happy Valley "Patching" Steve, ~-`~~ am reviewing the sundry submitted to patch the T-80 sand in Happy Valley A-2 (203-1131As with A-8 (204- ~~1 8/25/2008 Page 2 of 2 • ~ 114), could you have the reservoir engineer provide some information regarding the production history of the well and the decision to isolate the T-80? I checked the production information in our data base and the production looks to have declined below 1 MM ft"3 per month in May 2007, although production for September 2007 is listed as 4273 mcf and production for December 2007 is listed as 2395 mcf. Thanks in advance. If there is further work similar to A-8 and A-2 planned in other HV wells, please include the reservoir information. Call or message with any questions. Tom Maunder, PE AOGCC From: Maunder, Thomas E (DOA) Sent: Wednesday, August 20, 2008 5:04 PM To: Tyler, Steve L Subject: Happy Valley A-8 (204-114) Steve, I am reviewing the sundry submitted to put patches over 2 Tyonek perf zones in Happy Valley A-8 {204-114). Could you provide a little information regarding the production history? Does Unocal/Chevron have information that these zones are the water culprits? Thanks in advance. Tom Maunder, PE AOGCC 8/25!2008 • • °- -,.,. MICROFILMED 03101 /2008 DO NOT PLACE ~'s . ~,. . -<. ~, ~_ ANY NEW MATERIAL UNDER THIS PAGE F:\LaserFiche\CvrPgs_Inserts\Microfilm_Marker:doc e e Chevron ~ IììiiíII Timothy C Brandenburg Drilling Manager Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Tel 907 263 7657 Fax 907 263 7884 Email brandenburgt@chevron.com March 16, 2006 Steve McMains AOGCC 333 W. ¡th Avenue, Ste. 100 Anchorage, Alaska 99501 Re: Outstanding Sundries Dear Mr. McMains, We have conducted an internal audit of regulatory filings for 2003 and 2004. As a result, several projects were found to have outstanding sundries. We have researched the work and have prepared the sundries to close out the projects left uncompleted. The list of projects includes the following: 2003 Grayling, G-12RD3, Reperforate Grayling, G-24, Reperforate Monopod, A-15RD2, Perforate Steelhead, M-01, Repair Casing Patch Steel head , M-05, Perforate Swanson River, SCU 32-04, Reperforate (3 Sundries) Swanson River, SRU 12-15, Recomplete Swanson River, SRU 32A-33, Reperforate ~~~~YValley, HV-A02, Coil Tubing Clean Out/' ~O Ô· I 3 In order to assure that we do not have any such gaps in the future, we have implemented a database to track all drilling related AOGCC filling requirements. Please contact me directly at 263-7657 if you have any questions about these filings. Sincerely, 7 ~ '" . ~~ ~7 ~/~ Timothy C. Brandenburg . Drilling Manager Attachments Cc: Well Files TB:sk Union Oil Company of California I A Chevron Company http://www.chevron.com _ STATE OF ALASKA . ALA.., OIL AND GAS CONSERVATION COM~SION REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon U Repair Well U Plug Perforations U Stimulate U Other L::J coil tubing Performed: Alter Casing 0 Pull Tubing 0 Perforate New Pool 0 Waiver 0 Time ExtensionO Change Approved Program 0 Operat. Shutdown 0 Perforate 0 Re-enter Suspended Well 0 2. Operator Union Oil Company of Califomia 4. Current Well Class: 5. Permit to Drill Number: Name: Development [] Exploratory 0 203-113 3. Address: PO Box 196247, Anchorage, AK 99519 Stratigraphic 0 Service 0 6. API Number: 50-2312001400 7. KB Elevation (ft): 9. Well Name and Number: 733' HV-A02 8. Property Designation: 10. Field/Pool(s): Happy Valley Happy Valley Field/ Tyonek, Beluga 11. Present Well Condition Summary: Total Depth measured 10,225' feet Plugs (measured) 9,757' true vertical 9,812' feet Junk (measured) Effective Depth measured 8,937' feet true vertical 8,530' feet Casing Length Size MD TVD Burst Collapse Structural Conductor 78' 13-3/8" 78' 78' 3,450 psi 1,950 psi Surface 1,046' 9-5/8" 1,046' 1,046' 6,870 psi 4,760 psi Intermediate 3,081' 7" 3,081' 2,936' 7,240 psi 5,410 psi Production 7,219' 3-1/2" 10,215' 9,802' Liner Perforation depth: Measured depth: 6,784' to 10,052' True Vertical depth: 6,406' to 9,640' Tubing: (size, grade, and measured depth) 3-1/2", L-80 @ 3,014' Packers and SSSV (type and measured depth) ZXP packer 4/ 4" x 10' production seal bore 12. Stimulation or cement squeeze summary: Intervals treated (measured): n/a Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 0 2,650 Subsequent to operation: 0 0 0 0 698 14. Attachments: 15. Well Class after proposed work: Copies of Logs and Surveys Run Exploratory 0 Development [2] Service 0 Daily Report of Well Operations X 16. Well Status after proposed work: Oil 0 Gas [2] WAG 0 GINJ 0 WINJ 0 WDSPL 0 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. I ~Undry Number or N/A if C.O. Exempt: 304-161 Contact Steve Tyler 263-7649 Printed Name Timothy C. Brandenburg Title Drilling Manager 7_-~;:1:~ 0 ~ ~ -& --OcP Signature Phone 907-276-7600 pate DEI.,." ," nn;.'~~~ ~ L-/ -. "'" ~'IMI\ .1. LVI.IU I . . Form 10-404 Revised 04/2004 AFE 162391 Submit Onglnal Only RKB to GL = 16.50' TD:::: 10,225' MD / 9,812' VD HappyValley02dated 05-2004 1- .1 nøf;:::¡il y 1. 78' of 13-3/8" conductor (driven to refusal) 2. 9-5/8" surface casing @ 1,046' MD/1 ,046' VD cemented to surface 3. SFO-1 CI Menthol Injection Port @ 2,503' MD - 10 2.992" (drifted to 2.87") Operating pressure ::= tbg pressure + 1 ,500 psi 4. HMC hanger/ZXP packer w/4" x 10' production seal bore in middle @2,886- 2,996' 5. 7" intermediate casing @ +- 3,081' MD /+- 2,936' VO -- cemented to +/- 200' below 9-5/8" shoe 6. Estimated TOC in 8-1/2" hole @ 3,600' 7. BX Nipple @ 6,725' 8. 8X Nipple @ 7,845' 10. 8X Nipple @ 9,275' 11. 8X Nipple @ 9,757; xx plug set & calc carb dump bailed to +/- 9,496. Tag fill @ 9360' on 5/20/04 Bit sizes:::: 12-1/4",8-1/2" and 6-1/8" 9-5/8" 47 26 9.2 7" 3 1/2" l-BO l-BO l-BO BTC BTC (KC) IBTC(ABMod & IBTC) 0' 0' 2,996' 1,046' 3,081' 10,215' Date 10/20/03 9/30/03 9/30/03 9/9/03 8/15/03 8/15/03 8/14/03 8/14/03 Perforations MD 6,784-6,824' 7,131-7,171' 7,181-7,191' 9,050-9,070' 9,318-9,348' 9,534-9,564' 9,809-9,866' 10,012-10,052' TVD 6,406-6,445' 6,746-6,786' 6,795-6,805' 8,642-8,662' 8,909-8,938 9,123-9,153 9,397-9,454' 9,600-9,640' REVISED: 03/02/06 Drawn By: DED, Revised by: JGE 5/8/04 e e Operations suspended. ND BOP from HV #1 and NU on HV #2, stab up coil in injector head install connector and perform pull test to 15000#. Clear area in front of HV #2, and lay herculite. Move and spot equipment for HV #2. Test BOPs 250 PSI low and 5000 PSI hi. PU BHA with 2.8 WOTCO 5 bladed bit, and make up run motor prior to stabbing to ensure proper rotation. NU riser and injector head spot concrete blocks for tie off points and secure, perform 250 PSI low and 5000 PSI high shell test. Prep to RIH. RIH with coil with pumps running, filling hole at .25 BPM. 5/9/04 Tagged top of cement 30' high found encoder for coil depth to be not working correctly. Attempt to use manual counter on reel and it was not functioning correctly. Drilled through cement and composite plug and lost circulation, filled hole took 2 bbl, and pumped 10 BBL sweep. RIH and tagged top of cement drilled 10' motor stalling depth 9010', loss 200psi. Set weight on bit no differential press. Circ, sweep to surface. POOH motor bad cic sub not sheared bit in gauge. Mark coil to correlate depths. Work on both depth trackers and change out motor. Mill in gauge and good shape. RIH tagged @ 8,978'. Depth counters not working could not track depth our count on depth that was recorded. POOH to work on coil unit. Pull head riser pipe LD SHA. Work on mechanical and electrical depth tracking. PU and RU BHA riser place head on well. Shell test SOPE. RIH perform depth test. RIH to 1,000'. POOH UO test good elec. Tracker good mechanical broke, fix depth tracker mechanical. RIH checking depth elec/mech. Wash and drill from 8,983' to 9,000' (CMT and Calcium Chloride). Pump N-vis sweeps when needed. 5/10/04 Washed and drilled from 9,000' to 9270'. Drilled through the composite plug at 9,007'. CBU and then POOH. Broke the riser and changed the BHA to a jetting assembly. RIH pumping at a rate of 0.30 barrels per minute. Tagged up and jetted the top of the plug sweeping the hole with gel at a rate of 1.2 to 1.6 barrels per minute, POOH. LD the jetting assembly and picked up the GS pulling tool assembly. RIH. 5/11/04 Finished tripping in the hole. Attempted to wash out and pull the XX plug, did not appear to pull the plug. POOH to check the tool string. Change out stripper rubber and do maintenance on coil unit. Pick up BHA and riser joints. Performed pressure integrity test. Opened the well, had 2650 psi tubing pressure. Sled the tubing pressure down to 1,300 psi. RIH with coil pumping at 1.1 barrels per minute to 9,200'. Checked pick up weight of 24,400 Ibs and a slack off weight of 8,200 Ibs. Tagged plug at 9280'.Worked coil and attempted to latch onto XX plug. Latched onto plug. Worked coil and attempted to pull the plug from the nipple. Worked the pipe up and down while pumping and jarring with a max overpull of 12,000 Ibs with no success. Attempted to pump off of the plug, could not release the pulling tool. The tubing pressure had increased to 2,800 psi during the plug pulling operations and the well was killed utilizing the driller's method. Mixed and pumped a 12 barrel gel sweep at 1.5 barrels per minute and attempted to hydraulically release from the plug. 5/12/04 Finished circulating out gel sweep. Could not release from the plug. Dropped the ball and pumped the same to bottom and sheared off at the disconnect sub. Pumped out of the hole with the coiled tubing and RD the same. Operations suspended. 5/17/04 Operations suspended. RU Pollard slickline unit and lubricator. RIH with a 2.7" OD impression block and tagged up on ice in the tubing hanger. POOH. Dumped 5 gallons of methanol in the tubing and worked a 2.75" gauge ring through the wellhead. 5/18/04 RIH with 2.70" LIB. Tagged fish at 9,250' RKB and had definitive impression of Coil BHA. (Clean) PU additional lubricator and re-headed Slickline. PU Schlumberger modified GS Bait Sub and RIH. Shear GR on Slickline- set HV-A02 162391 CTCO, morning report summary, CONFIDENTIAL: last revised 3/2/2006, Page 1. HV-A02 Flow tested the wel rate of 65 bwpd 162391 CTCO, morning report summary, CONFIDENTiAl: last revised 3/2/2006, Page 2. The flow Flow tested the well. The flow rate at midnight was 3.119 mmcf/d with 780 psi flowing tubing pressure and a fluid rate of 24 bwpd 5/22/04 rate at 05:00 was 3.058 mmcf/d with 784 ps flowing tubing pressure and a fluid 5/21/04 Finish cutting line and picking up tool string. Reset the rope socket. RIH and latched onto the fish. Jaïïed on the fish. Fish moved some after several jar licks. Starting seeing second (Coil BHA) Jars stroking. The fish came free after 42 jar hits. We had moved the fish over 8 feet at this time before it came free. Did not see a change in wellhead pressure after moving fish. Saw an increase in string weight from 2,000 Ibs to 6,000 Ibs when pulling through the 'X' nipples on the way out of the hole. POOH, recovered the coiled tubing assembly and the 'XX' plug. LD the fish and fishing tools. The X Lock had one key that was not floating and was dragging. The X plug had a 3/16" nut, a pound of large metal pieces and a cup of frac propent in the sub. LD the lubricator and RD the braided line unit. RU the Pollard slickline truck unit and lubricator. Tested the lubricator to 2500 Psi. RIH with a 2.75" gauge ring and tagged fill at 9,360'. Had 1,100 pounds picking GR off bottom giving us concern about DG run. Slickline identified the fluid level at 2,900' when running the gauge ring. POOH. Picked up 3' of 2.5" dummy guns. RIH to 9,350'. Pick up weights 340# at 1000', 550# at 2000' 740# at 3000',930# at 4000',820# at 5000', 1010# at 6000',950# at 7000',950# at 8000',1030# at 9000' and 1200# at 9350'. Fluid in hole and high angle in mid section create some extra weight. POOH. LD the guns and RU to swab. Hung SSV on the wing valve of tree and changed the flow lines from the #1 well to the #2 well over to T -Pak. Opened the well to surface tank with 1140 tbg pressure. Well started unloading fluid after gas cap was bleed of. Put well to T -Pak and start testing. RD Pollard, cleaned up and sent home. 5/20/04 Attempted to pressure up on the fish and plug to 2,000 psi by pumping at 1 barrel per minute. Started to pump fluid away either past the plug or into the open perforations at 1700 psi. Pumped a total of 8.6 barrels. SD and notified office. Attempted to pressure up on the fish and plug to 2000 psi by pumping at 2.6 barrels per minute. Started to pump fluid away either past the plug or into the open perforations at 1800 psi. RD Schlumberger and sheared off of the fish. POOH. RD the slickline truck and RU the 0.25" braided line skid unit. Moved the crane to the #2 well and scoped out an additional section. PU the lubricator and tool string. PJSM with all personnel. Pull tested the rope socket against the grease head to 3,600# then 5,600# Ibs. Re-arranged the tool string and left out 14' of weight bar to clear master valve. RIH latched baited sub with GS first try at 9250' SLM. Hit one small oil jar lick 4,500 # (2000 # over tool and BHA weight) held dead pull after jar lick and lost 200# weight after 15 minutes. Increased dead pull to 5600# and lost 170# after holding 20 minutes. Increased dead pull too 6520# and held 20 minutes with no losses in weight. Set down and re-cocked jars. Made 31 jar licks in the 6900# range (this is 4600# over tool and BHA weight) over 2.5 hours Only notice slight weight loss on two jar licks. Pretty much looking like fish is rock solid. Shear GS and start out of hole. LD tools. Inspect GS, cut line and re-head. 5/19/04 e bait~d sub on Schlumberger BH.iSh. POOH. RIH with GS latch baited sub and wait on pump. Productions tri- plex pump went down calling on mechanic and Pollard Hot Oil Truck. SRF Mech pulling valves on productions tri- plex and fixed same. Pollard Hot Oil truck on location and attempt lubricate and bleed. After 5 hours of fighting the two pumps on location trying to lubricate and bleed- converse with town and call Schlumberger Dowell too pump. (21 Bbls total pumped and well not following schedule as low pump rates creating gas cut fluids when unloading). Moved junk iron pumps from location, mixed KCL and laid out iron for Schlumberger to pump. Schlumberger crew on location finish RU, hold good ops safety meeting and walk through project scope. Perform low pressure test and high pressure test on piping too 5000# - test good! Start lubricate and bleed. Lubricate and bleed as planned. Start 1400# Tbg. Pump 10 bbls at 1.5 BPM. Tbg 1500# SD and wait 45 minutes. Bleed back to tank from 1500# too 900# mostly gas 0.5 Bbls fluid unloaded on bleed. Pump 10 bbls at 1.5 BPM tbg went from 900# to 1000# shut down and wait 30 minutes. Bleed back to tank from 1100# to 470# got 1.5 bbls fluid returns during bleed (at midnight). Pump 10 bbls at 1.5 BPM. Tbg went from 470# too 570# shut down and wait 30 minutes. After 30 minutes bleed from 800# to zero to tank total 0.5 bbls fluid to tank. Pump 5 bbls at 0.5 BPM rate tbg pressured up to 175# waited five minutes bleed small volume of gas and went too straight fluid blow down · ~ e e 5/23/04 Flow tested the well. The flow rate at midnight was 2.681 mmcf/d with 698 psi flowing tubing pressure and a fluid rate of 52 bwpd. 5/24/04 Flow tested the well. RU Pollard slickline unit and lubricator. Picked up a 2.65" gauge ring and tested the lubricator to 2500 psi. RIH with the 2.65" gauge ring and tagged the top of fill at 9356' KB. POOH. Pulled 850 Ibs off bottom. Picked up and surface tested the Scientific spinner, temperature, pressure, CCLlGR, and capacitance logging tools (PL T). RIH with the PL T tools to 6,600'. Logged down at a rate of 60 fpm to 9,336' then logged up to 6,600' at 60 fpm. Logged down at a rate of 90 fpm to 9,336' then logged up to 6,600' at 90 fpm. Logged down at a rate of 120 fpm to 9,336' then logged up to 6,600' at 120 fpm. POOH. At 1,500' the flow rate picked up to 3.9 MMcf/d then fell off due to swabbing action of tool string. LD the Scientific logging tools and downloaded same. Tools were clean, there was no sand buildup around the bow spring centralizers. RD the Pollard slíckline unit. Secured the well. Suspended operations. HV-A02 162391 CTCO, morning report summary, CONFIDENTiAl: last revised 3/2/2006, Page 3. l-/ ~ DATA SUBMITTAL COMPLIANCE REPORT 10/6/2005 Permit to Drill 2031130 Well Name/No. HAPPY VALLEY A-2 Operator UNION OIL CO OF CALIFORNIA 5!t.V L c.¡ J ~~ .uNJ> API No. 50-231-20014-00-00 MD 10225 /' TVD 9812 Completion Date 8/4/2003 Completion Status 1-GAS Current Status 1-GAS UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional~ey Yes ) DATA INFORMATION Types Electric or Other Logs Run: Well Log Information: Log/ Electr Data Digital Dataset Type Med/Fnnt Number Name (data taken from Logs Portion of Master Well Data Maint Log Log Run Scale Media No Interval OH / Start Stop CH - Received Comments ED C ~'J..> 12163 Completion 5 9100 9628 Case 10/24/2003 Completion Record - 2 1/8" Power EJ 4 SPF - DLlS files also on this disk Log Completion 5 Col 9100 9628 Case 1 0/24/2003 Completion Record - 2 1/8" Power EJ 4 SPF ED C ~\..'~ 12163 Cement Evaluation 5 3120 10111 Case 10/24/2003 Cement Map & VOL - DLlS files also on this disk Log 12163 Cement Evaluation 5 Col 3120 10111 Case 1 0/24/2003 Cement Map & VOL ED C .J2dst) L~~ 12163 Casing collar locator 5 8840 9140 Case 1 0/24/2003 2" HSD Power Jet 2006 HMX - Gamma Ray/CCL - DLlS files also on this disk Log Casing collar locator 5 Blu 8840 9140 Case 10/24/2003 2" HSD Power Jet 2006 -PdsD \)\ 12163 HMX - Gamma Ray/CCL '""-' ED C Pressure 5 7000 9751 Open 10/24/2003 Fluid Depth Determination - Pressure, Temperature, GRlCCL - DLlS files also on this disk Log Pressure 5 Col 7000 9751 Case 10/24/2003 Fluid Depth Determination - Pressure, C ~~~\)12163 Temperature, GRlCCL ED Temperature 5 7000 9751 Open 10/24/2003 Fluid Depth Determination - Pressure, Temperature, GRlCCL - DLlS files also on this disk Log 12163 Temperature 5 Col 7000 9751 Open 10/24/2003 Fluid Depth Determination - Pressure, Temperature, GRlCCL DATA SUBMITTAL COMPLIANCE REPORT 10/6/2005 Permit to Drill 2031130 Well Name/No. HAPPY VALLEY A-2 Operator UNION OIL CO OF CALIFORNIA API No. 50-231-20014-00-00 MD 10225 TVD 9812 Completion Date 8/4/2003 Completion Status 1-GAS Current Status 1-GAS UIC N ~ Caliper log 2 Col 3071 8867 Open 10/24/2003 Caliper Log - Integrated /' Cement Volume Log Cement Evaluation 2 Col 3071 8867 Open 1 0/24/2003 Caliper Log - Integrated Cement Volume Äg Induction/Resistivity 25 Col 2927 8462 Open 10/24/2003 Array Induction, LithoDensity, I Compensated Neutron, I Dipole Shear Sonic I II!6'ã' I g Density 25 Co I 2927 8462 Open 10/24/2003 Array Induction, LithoDensity, .~ Compensated Neutron, ~g Dipole Shear Sonic Neutron 25 Col 2927 8462 Open 10/24/2003 Array Induction, LithoDensity , Compensated Neutron, Dipole Shear Sonic .bog- Sonic 25 Col 2927 8462 Open 10/24/2003 Array Induction, LithoDensity, Compensated Neutron, Dipole Shear Sonic (l:Õg Rate of Penetration 25 Blu 92 1 0225 Open 10/24/2003 ROP/DGRlEWR L,e( Induction/Resistivity 25 Blu 92 1 0225 Open 10/24/2003 ROP/DGRlEWR ~g Density 25 Blu 92 1 0225 Open 10/24/2003 DGRlSLD/CTN Log Neutron 25 Blu 92 10225 Open 1 0/24/2003 DGRlSLD/CTN c.7 C 12684 Completion 8600 9080 6/14/2004 2" HSD Powerjet, Plug .J.!og C 12684 Completion BS 8600 9080 6/14/2004 2" HSD Powerjet, Plug, DSN 12684 .- ¡kog I nd uction/Resistivity BS 3071 8867 6/14/2004 Array Induction, LithoDensity Compensated neutron, Dipole Shear Sonic L~ I nd uction/Resistivity BS 3071 8867 6/14/2004 Array Induction, LithoDensity Compensated i neutron, Dipole Shear I Sonic, TVD ~g See Notes BS 8600 9080 Case 6/14/2004 Halliburton Fas Drill, ! Bridge Plug, 86' Cement i Plug ~ Caliper log 2 BS 3071 8867 Open 1 0/24/2003 Caliper Log - Integrated I Cement Volume DATA SUBMITTAL COMPLIANCE REPORT 10/6/2005 Permit to Drill 2031130 Well Name/No. HAPPY VALLEY A-2 Operator UNION OIL CO OF CALIFORNIA API No. 50-231-20014-00-00 MD 10225 TVD 9812 Completion Date 8/4/2003 Completion Status 1-GAS Well Cores/Samples Information: Name Interval Start Stop Received Sent ADDITIONAL INFORMATION y0 Daily History Received? Well Cored? Chips Received? Y J 1\1 Formation Tops Analysis v I t..1 Received? Comments: Ii" 0 tf'" tilt h.ø ti. r¿~:l~ ~<tV' r"'~'" ~"",c. o..J,Lc.J ~ /:), I"~ 1 .s "'" l, ~/tt tel ~"v~'" ( h..VOI' f·j.~), @ '^ IIL4 \....1 . ~) Compliance Reviewed By: \L. Current Status 1-GAS UIC N Sample Set Number Comments Cores and/or Samples are required to be submitted. This record automatically created from Permit to Drill Module on: 6/27/2003. ~N &N ~ S- A c.. c.. Date: s- ~ N\'4 r- ~---' ) ) ,......, -,-' ,',"-F'" 1.'1:1'1.11 ~'~ i r f 'I I i i !, '::::;¡ \': f !f-- iJ" i, L;, (', -~ ~ U-l'J :,r~f7f.7¡/¡, \ II:~ : Ü~ U' i\\ f!:::2¡\ , , \,.~\ U ' FRANK H. MURKOWSK/, GOVERNOR ALASIiA. OIL AND GAS CONSERVATION COltDlISSION November 9, 2005 333 W. pH AVENUE, SUITE 100 ANCHORAGE. ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Mr. Larry Greenstein UNOCAL [Chevron] P.O. Box 196247 Anchorage, Alaska 99519 , \:? :0.1\ ,~O 'ì- ~/[I Dear Mr. Greenstein: The Alaska Oil and Gas Conservation Commission ("Commission") performed an inspection of your well safety valve system (SYS) at Deep Creek Unit, Happy Yalley "A" pad on November 1, 2005. Attached is a copy of the Inspection Report. Regulation at 20 AAC 25265 in conjunction with Conservation Order 553 requires all development wells to be equipped with a fail-safe automatic surface SVS capable of preventing uncontrolled flow by shutting ofT t10w at the wellhead. An SVS component failure rate of 30 percent was identified during the above-noted inspection. Commission test interval requirements provide that the testing frequency will be increased when a failure rate exceeds 10 percent. The Commission inspector identified freezing as the cause of failu.re, preventing the SSV from closing on wells A-2, - 8, and -9. Etlective Novemþer 1, 2005 and until an acceptable level of performance is achieved, the safety valve systems associated with wells located on Happy Valley A-pad must be tested every 90 days. When testing is scheduled, you must notify the Commission (907-793-1236; 907-659-2714 on weekends and after hours) at least 24 hours in advance to provide an opportunity to witness the SVS test. U nocal mu.st also provide the Commission with a written summary of the work to be completed to ensure the SYS is operational, specifically addressing the freezing concerns that prevented the SSVs to function properly when tested. Sincerely, ~.,~' --;--"~ ~;\: 1?eg~'í Petroleum Inspection Supervisor Attachment cc: AOGCC Inspectors Safety Valve & Well Pressures Test Report Reviewed By: P.I. Suprv Comm Pad: DC_HAPPY_VALLEY_A Field Name DEEP CREEK Insp Dt 1 111/2005 Inspected by Lou Grimaldi Interval 90 Days InspNo svsLG051102044246 Related Insp: Operator UNION OIL CO OF CALIFORNIA Operator Rep Steele/Trester Reason 190-Day Src: Inspector ìS$V ISSSvIS"utÌn.'L)4'_W~lLTYpe. .1 . 'Pell Prêssures:~ ,Gasiu(I':W(lve':J~-COfmllellis --- Well Permit Separ Set LIP Test Test Test Date SI OïI,WAG,GINJ, Inner Outer Tubing Number Number PSI PSI Trip Code Code Code GAS,CYCLE, SI PSI PSI PSI Yes/No Yes/No -'---A-'-- --203o720---- 800 ---60Ü·6S0---p-r-p----- - -----T-I~GAS -----On-rn-Ol950-T-~u~~----- ··-----~-l --- A~lO-'- --- ----204-1860·- - - --8"00-'- -6-00--590- - --- ·-'p--r--p-- ----- - -".----.. - -----¡-- I-GAS -. -- -0- --O------,--900--·~------ -N~ ----- ~~- --- - - - --- - --.-- ---1 - --~---- --------------- ------------------------------ - -----~---------------~------~--,--- ------._---- ~-----------_._------~--~------ --- ------- ---~----- A-2 2031130 800 600 600 P 6 I-GAS 0 0 805 No No -- -,----- --- --- - --_.~--------------------------------.-.__._-- - --~-- ---- ~---------~-----_._---------~~._----------_._------ ----------- ~-----_.._-,-------- A-B 2041140 800 600 600 P 6 i I-GAS 30 0 820 No No ~_. _._~~__.______2~~17~0__~~~ 600 n--.?_~__p_~__J___ ._1_ ._.___~G_A~_ ___~____~_~..292__~!:J~_._~o_____________ Comments - Performance wells 2,8,&9 failed to close, appeared to be froze, Pad manned and wells observed, heaters will be applied and valves thawed and successfully retested by 12:00 11102/05 or be shut-in, Outstanding equipment setup and appearance of maintenance, --- ---------~-- ---- ---------~- ..~------ ---~._---- Wells Components Failures Failure Rate 5 __HL__ __~-L___ ---.l.~~_._ --~--- ----- ._--_._--~-- ~-~------~-~--- --------- ---' ( o p y Wednesday, November 02, 2005 [Fwd: [Fw~: RE: Unocal's gas well 9 miles c" jll rd. Ninilchik]] JI ) ¿?og.//? From: JonnNorman <johi1._nönnan@admin~state.ak.us> ~~~~:MOll, 23 Au& 2904,1 7:23 :24 -0800 "'" , ~'~!~.··;[~ª~Æ:~~~:~~m~l:HQªX~q~: :..··i:~@,~~~~~~t~~~~,. Jody, please put a copy in EACH of the Happy Valley well files. Thanks -------- Original Message -------- Subject:[Fwd: RE: Unocal's gas well 9 miles oilwell rd. NinilchikJ Date:Mon, 23 Aug 2004 15 :20:04 -0800 From:Thomas Maunder <tom nlaunder@admin.state.ak.us> Organization:State of Alaska To:John Nonnan <john norman@admin.state.ak.us>, Daniel T Seamount JR <dan seamount@admin.state.ak.us>, Bob Crandall <bob crandall@admin.state.ak.us>, Robert Mintz <robert mintz@law.state.ak.us> CC:Jody J Colombie <jody colombie@admin.state.ak.us> All, It appears that there may be a potential issue brewing in the Happy Valley area. If I receive any further emails, I will forward them on. Tom -------- Original Message -------- Subject:RE: Unocal's gas well 9 miles oilwell rd. Ninilchik Date:Mon, 23 Aug 2004 15 :03: 18 -0800 From:Joseph Kashi <kashi@alaska.net> To:'Thomas Maunder' <tom maunder@admin.state.ak.us> CC:'phillip yezierski' <philski9@yahoo.com>, 'Carol D Lee' <carol lee@dnr.state.ak.us> Dear Ms. Lee: As you can see from the prior Emails set out in the thread below, I am inquiring about whether any production units have been established in the Caribou Hills east of Ninilchik on Oilwell Road. Your assistance is appreciated. Thanks Joe Kashi -----Original Message----- From: Thomas Maunder [mailto:tom maunder@admin.state.ak.us] Sent: Monday, August 23, 2004 2:30 PM To: Joseph Kashi Cc: 'phillip yezierski'; Carol D Lee Subject: Re: Unocal's gas well 9 miles oilwell rd. Ninilchik Mr. Kashi, Here is the text of an email I sent to Mr. Yezierski last week in response to his questions. I am sorry I did not copy you on that response. With regard to your specific questions on production units, I suggest you contact Ms. Carol Lee at the Division of Oil and Gas (DOG). Her eddress is above. lof3 8/25/2004 2:50 PM [Fwd: [Fwd: RE: Unocal's gas well 9 miles (' .' Jll rd. Ninilchik]] ) Tom Maunder, PE AOGCC Mr. Yezierski, The Unocal development you are referring to is called Happy Valley and is within the Deep Creek Unit administered by the State Division of Oil and Gas. The AOGCC has issued permits for 8 wells to be drilled from the same pad located in section 22. According to the information published for these wells, 4 wells reach total depth in section 22 and 1 each in sections 14, 15, 21 and 28. No wells have been proposed for sections 23 or 24. Our regulations do require notice to landowners depending on the distance from the proposed activity. In the case of these gas wells, all owners within 3000' laterally of the well at the production zone should be notified. Although you did not provide the footage distances to the section lines for your property, it would appear that it is likely beyond the 3000' notice distance. If you would like, we can add you to our notice list for any activities that require public notice in this area. You may also explore our web site at www.aogcc.alaska.gov. In the "Orders" section under conservation orders you will find several orders relating to the drilling of the wells at Happy Valley. "Drilling Statistics" would have information regarding when permits are issued or wells are completed. With regard to Unit administration and other land activities, you might contact Ms. Carol Lee at the Division of Oil and Gas. I have included her eddress above. I hope this information is of help. Tom Maunder, PE AOGCC Joseph Kashi wrote: >Please advise whether any production units have been established in this >area and if so, what are the boundaries. If there is a different state >agency to contact in that regard, please advise with contact name and >contact information. > >Thanks > >Joe Kashi >AK Bar #7811107 > >-----Original Message----- >From: phillip yezierski [mailto:philski9@yahoo.com] >Sent: Friday, August 20, 2004 12:19 PM >To: tom maunder@admin.state.ak.us >Cc: kashi@alaska.net >Subject: Unocal's gas well 9 miles oilwell rd. Ninilchik > >Dear Mr. Maunder, > >As per our conversation on August 20,2004 at 11:20 >a.ffi. > >I own property approximately 10.5 miles down oilwell 2of3 8/25/20042:50 PM [Fwd: [~w~: RE: Unocal's gas well 9 miles (""JII rd. NiniIchik]] 30f3 >Rd. in Ninilchik from the Sterling Hwy. The Legal >description is as follows. T02S R13W S24 HM0730482 >Alaska State Land Survey 72-81 Tract A. > >Upon my inspection of the property on August 19,2004 I >noticed the installation of a 12" pipeline from a >Unocal facility at about 9 miles on oilwell rd. from >the Sterling Hwy. > >I own the Mineral Rights to the above mentioned >property and would like to know if I am due a >consideration for possible oil or gas which this well >might be producing and might be part of what lies >beneath my property. > >Any questions I can be reached at (907)252-5239 >Very truly yours > >Phillip Yezierski > > > > > John K. Nonnan <John Norman(Q}admin.state.us> Commissioner Alaska Oil & Gas Crnservation Commission ) 8/25/20042:50 PM ) Unocal Alaska 909 W. 9th Avenue Anchorage, AK 99501 Tele: (907) 263-7889 Fax: (907) 263-7828 E-mail: oudeand@unocal.com ) ;< ð3 -1/:3 ;:?ð3 ~ ¿~ <- UNOCAL Debra Oudean G & G Technician Date: June 9, 2004 To: AOGCC Robin Deason 333 W. 7th Ave. Ste#100 Anchorage, AK 99501 - HAPPY VALLEY 2&3 ¡J,:J~illt~fiifì~ ,,":::1~itt~ii:~þg~]:~!li,}'¡~:~~~ii~¡i~~£~ff~' ~~~~ r . ,~'" .~~ gk ............................hm.............................................................,.."................_m.......v.v............................................................................................_m.........mmhm..............m.m............ ¡................................ ........vw.....umnmm_.........I1"'............................................ HAPPY VALLEY-2 : ARRAY INDUCTION LITHO DENSITY 2/5 7/30/2003'2927-8462 'COMPNEUTRON, DIPOLE SHEAR SONIC INCH 'TVD HAPPY VALLEY-2 : ARRAY INDUCTION LITHO DENSITYCOMPNEUTRON DIPOLE SHEAR SONIC 1HAPPY VALL~~-~, ;I~ALI,PERL>OG ' " 1?INC'Hj 7/30/260~,1307~-8867 'ì HAPPY VALLEY-2 COMPLETION RECORD 2 HSD POWERJET 51NCH 10/2/2003 8600-9080 ~ ;6SPF ¡HAPPY VÄLLÉY-2' :\HALLlBURTON FAS DRILL BRIDGEPLUG ' 15 INCH '19/29/2003 86ÒO~9080 I 11 11 1 HAPPy VALiÈY-3 ';ICOMPLETIÒN' RECÒRD 2.5 2506 POWERJETl51NCH '14/22/2004:110154-10168:1 ' 11 11' 1 ·'HÃP'py"'j"ÃLL·Ëÿ:Š",........,',..·..·JCOMf)'CËiïõ¡.:tÃÊCÔR[)-2':Š..25Ö'6~PÕV~iEï:ÜË~T15~ïÑcH-T '4/21 /2oò~ir996"Š:999:t-''''l-----'~·''-''''1·r'''·'-'-1-r..1'· rHApPYVALLI§Y:3-"":~--"-;rcÔMPLETioÑ-ÃECORD '2~Š'-H-ŠÓ-P-ÕWERJETI5IÑCH-r 4/,-Ù2004110640:'Õ67ál -----1--'-r--'-' .........__....._........_........._....__.__....._.______~_.-.. ...._._.._..¡._'--.--'_.._............I.__......._..__.__....____~_................_......._.__........._~_..L.....-....._---L-¥ ------...--............... ... ,_ _ _-...._____~._ HAPPY VALLEY-3 : COMPLETION RECORD 3.5 WEATHERFORD 5 INCH ' 5/9/200410050-10515 1 1; 1 ,BRIDGE PLUG ' ! HAPPY VALLEY-3 'COMPLETION RECORD MAPS BRIDGE 5 INCH : 3/11/200411175-11290: 1 l' ,PLUG COMPLETION RECORD WEATHERFORD 5 INCH ' 4/19/2004 10270-10545' WRP PLUG 1H~PPY VALLEY-3 ,SLlM CEMENT MAP TOOL , 0: 0 5 INCH ' 7/30/2003 3071-8867 l' 0, 1J 1, ; , 11 0 1, 0 HAPPY VALLEY-3 1 1 15 INCH '- 4/7/200414100-11'273 1 , .. '11 11' 1 Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. STATE OF ALASKA .. I ALAt ) OIL AND GAS CONSERVATION COMI'vI )ION APPLICATION FOR SUNDRY APPROVAL 20 AAC 25.280 Operational shutdown U Plug Perforations D Perforate New Pool D 4. Current Well Class: lN6A- s I'~ 12.004 P t:f /5"/,.5/f- Abandon U Alter casing D Change approved program D 2. Operator Name: Union Oil Company of California 3. Address: PO Box 196247, Anchorage, AK 99519 7. KB Elevation (ft): 733' 8. Property Designation: C-061590 and C-061589 11. Total Depth MD (ft): 10,225' 1. Type of Request: Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): 6,784 to 10,052' Packers and SSSV Type: Suspend U Repair well D Pull Tubing D Perforate U Waiver U Stimulate D Time Extension D Re-enter Suspended Well D 5. Permit to Drill Number: Exploratory D 203-113 /" D 6. API Number: /" 50-2312001400 Annular Dispos. U Other 0 Coil Tubing .,.... Development Stratigraphic o D Service 9. Well Name and Number: HV-02 /' 10. Field/Pools(s): Total Depth TVD (ft): 9,812' Wildcat in Tyonek and Beluga Sands PRESENT WELL CONDITION SUMMARY Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 8,937' 8,530' 9,757' Size MD TVD Burst Collapse Length 78' 1,046' 3,081' 7,219' 13-3/8 9-518" 78' 1,046' 3,081' 10,215' 3-1/2" 78' 1,046' 2,936' 9,802' 3,450 psi 6,870 psi 7,240 psi 1,950 psi 4,760 psi 5,410 psi 7" Perforation Depth TVD (ft): 6,406 to 9,640' Tubing Size: Tubing Grade: Tubing MD (ft): 3,014' 3-1p/2a"ckers and SSSV MD (ft).. L-~~.-. . ZXP packer 41 4" x 10' production seal bore .. '~~ ,1'A~~~ ~:~::;o~"Ss¿tP~~~eJO~ ~~:~ice D 15. Well Status after proposed w~~, . '1 5/16/2004 Oil D Gas. 0 --,.e~, . Abandoned WAG D GINJ D WINJ '[fk~); WDSPL 12. Attachments: Description Summary of Proposal ~ Detailed Operations Program D BOP Sketch 0 14. Estimated Date for Commencing Operations: 16. Verbal Approval: D D Date: Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Steve Tyler 907-263-7649 Printed Name Philip J. Krueger Title Drilling Manager Signature /~.. (' þ~,/ Phone 907-276-7600 Date ;. t COMMISSION USE ONLY 4/30/2004 Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~.I (p ( ./ Plug Integrity D BOP Test D Mechanical Integrity Test D Location Clearance 0 Other:'Tec;t- ED )J£ fo ·~Soo fÇ[ , ~A~ ~..~ ')f\\"\ \ ~8fL COMMISSIONER BY ORDER OF < L ,ft f THE C~:M"ISl~~O~ 1,\' r ADj". Ie: ~:L~:iœ~ ,~,..; , -.¡ 11\1 ' ,. ¡ \ ,) I t ,\, '--- INSTRUCTIONS ON REVERSE ) ') l 1. Workover Summary: 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Prep-Work- Conduct a pre-job assessment of location. Complete CT Checklist. Prep-Work- Drift CT w/1.3" ball. Mobe 1-3/4" Coil Unit to Location. Mobe/Spot Coil Unit & accessory equipment on liner. Berm in same. CT - NU 3-1/16" 10m x 4-1/6" 10m adapter flng, Pump-in Sub, Riser & , BOP's. Rig up coil tubing unit. RU surface lines. ./ CT - Thread 1-3/4" CT into injector head. MU CTC & test plate. Fill CT. Pull & pressure test CTC. Pressure test BOPE. CT - MU 2-1/8" weight bar(s), Motor & mill. Shell test BOPE. CT - RIH to TOC @ 8,937'. Drill out 40'± of cmt and Composite BP @ /'''' 9010'. CT - Continue RIH. Cleanout CaC03 f/9258' to top of PX plug @ 9275'.'/ CBO. PU to 9000'. Drop circ ball. Open Circ-Sub. CBU. Jet well dry w/ N2. Trap 3800 psi on tbg. POOH. Stand back injector head. WL - MIRU Slickline. RI retrieve plug @ 9275'. RI tag for fill to insure T-9JY sands are open. POOH. RD Slickline. CT - Secure well. RD & CT equipment. RU Test equipment. Flow test well for commercial viability. EL - If necessary the Re-perforating of T -1 Oc, T -17b, T -17a, T -80 & T -90 will be summarized in a separate E/line procedure. . ~ &rz¿. .(J.AJ ) STATE OF ALASKA ) ALASKA OIL AND GAS CONSERVATION COMrvllSSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG o Gas D Plugged D Abandoned D Suspended D WAG well suspended pending evaluation for additional potential D WDSPL No. of completions _ Other 5. DateComp., Susp., or Aband.: 6. Date Spudded: Surface: Northing 2,189,775.04 Easting 228,100.43 TPI: Northing 2,190,934.73 Easting 226,573.22 Total Depth: Northing 2,191,182.65 Easting 226264.9 18. Directional Survey: X Yes I:J No (attached) 21. Logs Run: LWD - RES/NEV/DENS/GR (TO to 3,081') E-line - RES/NEV/DENS/BHC/GR (8,880' to 3,081') 22. CASING, LINER AND CEMENTING RECORD CASING WT. PER SETTING DEPTH MD SETTING DEPTH TVD GRADE SIZE FT. TOP BOTTOM TOP BOTTOM 13-3/8" 68# K-55 0 78' 0 78 9-518" 47# L-80 0 1,046' 0 1,046 7" 26# L-80 0 3,081 0 2,936 3-1/2" 9.2# L-80 2,996' 10,215' 2,861 9,802 Method of operation (Flowing, gas lift, etc.): current open perfs 7,131 to 7,191' - low perm Gas-MCF: Water-Bbls: slight blow 0 Gas-MCF: Water-Bbls: slight blow 0 CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas, or water (attach separate sheet, if ~E'IVE D Submit core chips; if none, state "none". ., L::. V f· /' 1 a. Well Status: D Oil D GINJ DWINJ 2. Operator Name: UNION OIL COMPANY OF CALIFORNIA (UNOCAL) 3. Address: P.O. Box 19-6247 Anchorage, AK 99519-6247 4a. Location of Well (Governmental Section): Surface: 4018 FNL 1178 FEL T2S R13W Sec22 TPI 2893 FNL 2730 FEL 50 FWL T2S R13WSec 22 Horizon: 2893 FNL 2730 FEL 50 FWL T2S R13W Sec 22 Total Depth: 2652 FNL 3043 FEL T2S R13W Section 22 4b. Location of Well (State Base Plane Coordinates): 23. Perforations Open to Production (MD + TVD of Top and Bottom Interval, Size, and Number; if none, state "none"): Date 9/30103 9/9103 8/15/03 8/15/03 8/14/03 8/14/03 MD 7,131-7,191' 9,050-9,070' 9,318-9,348' 9,534-9,564' 9,839-9,866' 10,012-10,052' TVD 6,746-6,805' 8,641-8,661' 8,909-8,938 9,123-9,153 9,427-9,454' 9,600-9,640' 26. Date of first production: nla flare tested and SI Date of test: Hrs tested: Prod for test Oil-Bbls: 10/3/2003 24 period -+ o Flow tbg pres~ Csg press: o psi 0 psi Calc 24-hour Oil-Bbls: rate -+ o NONE Form 10-407 Revised 7/2003 ¡ ~~~ ~'i¡C!\ ~Vk~ fû.iiEC: 1 ~} :r~l}¡~ 7/9/2003 7. Date TO Reached: 8/1/2003 8. KB Elevation (ft): 733' 9. Plug Back Depth (MD + TVD): 9,757' 1 b. Well Class: D Development [2] Exploratory D Svc DStratigraphic DTest 12. Permit to Drill Number: 203-113 . 13. API Number: 50-2312001400 14. Well Name and Number: Happy Valley #2 15. Field/Pool(s): Wildcat in Tyonek and Beluga Sands 16. Property Designation: C-061590 and C-061589 10. Total Depth (MD + TVD): 10,225 11. Depth where SSSV Set: packer top @ 2,886' MD 17. Land Use Permit: C-061590 19. Water Depth, if Offshore: feet MSL n/a 20. Thickness of .Permafrost: n/a HOLE SIZE CEMENTING RECORD AMOUNT PULLED n/a 12-1/4" 8-112" nla - driven 54 bbls 12.8# lead/28 bbls 15.8# tail 37.8 bbls 12.8#lead/16.5 bbls 15.8# tail 214 böis 12# litecrete n/a n/a n/a nla 24. SIZE 3-1/2" TUBING RECORD DEPTH SET (MD) 3,041' PACKER SET (MD) packer top @ 2,886' 25. ACID FRACTURE CEMENT SQUEEZE DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 9.050-9,070' 30K # 20/40 carbolite 9,318-9,348' 60K # 20/40 carbolite PRODUCTION TEST Choke Size full open Oil Gravity-API (corr): n/a Gas-oil ratio nla DEC 11 2003 Continued on next page Alaska Oil & Gas Cons. Commission //] ,. , ,/ . ..' /' '\ Anchorage (_.._.ft-V\~-1'ci,&.z-)"LtV I 'CL..( ) 28. GEOLOGIC MARKERS FORMATION TEf NAME Tyonek T-50 Marker Middle Tyonek Coal 30. List of attachments: 29. FORMATION TESTS ) Include and briefly summarize test re" List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". MD 5,817' 7,916' 8,542' TVD SS -5,067' -7,166' -7,792' perforate 10,012-52; no recovery perforate 9,800-66'; no recovery X-nipple clclosed at 9,757' perforate 9534-64 no recovery perforate 9446-68 no recovery perforate 931848 flowed 1.2 MMCFGPD at 1061 psi FTP, 3849 BHP, 156 BHT "X" Nipple closed at 9275' perforate 9050-70, flowed 1.7 MMCFGPD at 1432 psi FTP, 3648 BHP, 152 BHT Set CIPB @ 9,01 O'--dumpbailed 40' cement. perforate 7131-51,7181-91, no response perforate 6788-6828, slow pressure gas build to 2290 psi SIP 31. I hereby certify that the~Oreg 'ng is true and correct to the best of my knowledge. Contact Jerry Bowen Printed Na~:~~u;: Title: Drilling Manager Signature 7 - /' ,. J r ,- Phone 907-263-7628 Date 12/10103 General: Item 1 a: Item 4b: Item 8: Item 13: Item 17: Item 20: Item 22: Item 23: Item 26: Item 27: Item 29: INSTRUCTIONS This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Classification of Service Wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water TPI (Top of Producing Interval). The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Used for Exploration wells only. Provide the permit number or ID issued by the landowner for surface operations (DNR, BLM, MMS, CIRI, ARSC, etc.). . True vertical thickness. Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the If this well is completed for separate production from more tha.t1 one interval (multiple completion), so state in item 1, and in Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-In, If no cores taken, indicate "none". . List all test information. If none, state "None". Form 10-407 Revised 7/2003 ..".-~ . ._., /I ../1 \.... ,r . \ /'._ /. r (!ZJ7 tft Cj(1!~7Û r û!/ ... ) STATE OF ALASKA ) ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG o Gas 0 Plugged D Abandoned D Suspended D WAG well suspended pending evaluation for additional potential No. of completions _ Other 5. Date Comp., Susp., .. /, or Aband. :1/ Lj (11).3 6. Date Spudded: Surface: Northing 2,189,775.04 Easting 228,100.43 TPI: Northing 2,190,934.73 Easting 226,573.22 Total Depth: Northing 2,191,182.65 Easting 226264.9 18. Directional Survey: X Yes I:J No ( attached) 21. Logs Run: LWD - RES/NEV/DENS/GR (TO to 3,081') E-line - RES/NEV/DENS/BHC/GR (8,880' to 3,081') 22. CASING, LINER AND CEMENTING RECORD CASING WT. PER SETTING DEPTH MD SETTING DEPTH TVD GRADE SIZE FT. TOP BOTTOM TOP BOTTOM 13-3/8" 68# K-55 0 78' 0 78 9-518" 47# L-80 0 1,046' 0 1,046 7" 26# L-80 0 3,081 0 2,936 3-1/2" 9.2# L-80 2,996' 10,215' 2,861 9,802 1 a. Well Status: D Oil o GINJ DWINJ D WDSPL 2. Operator Name: UNION OIL COMPANY OF CALIFORNIA (UNOCAL) 3. Address: P.O. Box 19-6247 Anchorage, AK 99519-6247 4a. Location of Well (Governmental Sectio~ ¡In Pf;:-L 6~ Surface: 4018FNL ~1¡~T2S R13W Sec. 22 tJ:'c- 14"""" TPI 2893FNL L ì2S R13W Sec. 22 Horizon: 2893FNL 2~FSL T2S R~ Sec. 22 Total Depth: 2652FNL ~6f@~s ~13W Sec. 22 4b. Location of Well (State Base Plane Coordinates): ~ 23. Perforations Open to Production (MD + TVD of Top and Bottom Interval, Size, and Number; if none, state "none"): Date 9/30103 9/9103 8/15/03 8/15/03 8/14/03 8/14/03 MD 7,131-7,191' 9,050-9,070' 9,318-9,348' 9,534-9,564' 9,839-9,866' 10,012-10,052' TVD 6,746-6,805' 8,641-8,661' 8,909-8,938 9,123-9,153 9,427-9,454' 9,600-9,640' 26. 7/9/2003 7. Date TO Reached: 8/1/2003 8. KB Elevation (ft): 733' 9. Plug Back Depth (MD + TVD): 9,757' 10. Total Depth (MD + TVD): 10,225 11. Depth where SSSV Set: packer top @ 2,886' MD 1 b. Well Class: D Development 0 Exploratory D Svc DStratigraphic DTest 12. Permit to Drill Number: 203-113 13. API Number: 50-2312001400 14. Well Name and Number: Happy Valley #2 15. Field/Pool(s): Wildcat in Tyonek and Beluga Sands 16. Property Designation: C-061590 and C-061589 17. Land Use Permit: C-061590 19. Water Depth, if Offshore: feet MSL nla 20. Thickness of Permafrost: nla HOLE SIZE CEMENTING RECORD AMOUNT PULLED nla nla - driven nla 12-1/4" 54 bbls 12.8# lead/28 bbls 15.8# tail nla 8-1/2" 37.8 bbls 12.8#lead/16.5 bbls 15.8# tail nla 214 bbls 12# litecrete nla 24. TUBING RECORD DEPTH SET (MD) 3,041' PACKER SET (MD) packer top @ 2,886' SIZE 3-1/2" 25. ACID FRACTURE CEMENT SQUEEZE DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 9.050-9,070' 30K # 20/40 carbolite 9,318-9,348' 60K # 20/40 carbolite PRODUCTION TEST Method of operation (Flowing, gas lift, etc.): current open perfs 7,131 to 7,191' - low perm Gas-MCF:' Water-Bbls: slight blow 0 Gas-MCF: Water-Bbls: slight blow 0 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". Date of first production: n/a flare tested and SI Date of test: Hrs tested: Prod for test Oil-Bbls: 10/3/2003 24 period -+ o Flow tbg pres~ Csg press: o psi 0 psi Calc 24-hour Oil-Bbls: rate -+ o NONE Form 10-407 Revised 7/2003 Choke Size full open Oil Gravity-API (corr): nla Gas-oil ratio nla .' Continued on next page ; ·.pZ:7/~ . .....' t.:r! : ,~., ~ "/ I' . . ·AP-e.. ' ~~,' . .,' ''¡', - 28. ) GEOLOGIC MARKERS FORMATION TEST::>" 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". Tyonek T -50 Marker Middle Tyonek Coal 30. List of attachments: NAME MD 5,817' 7,916' 8,542' TVD SS -5,067' -7,166' -7,792' perforate 10,012-52; no recovery perforate 9,800-66'; no recovery X-nipple clcIosed at 9,757' perforate 9534-64 no recovery perforate 9446-68 no recovery perforate 9318-48 flowed 1.2 MMCFGPD at 1061 psi FTP, 3849 BHP, 156 BHT "X" Nipple closed at 9275' perforate 9050-70, flowed 1.7 MMCFGPD at 1432 psi FTP, 3648 BHP, 152 BHT Set CIPB @ 9,010'--dumpbailed 40' cement. perforate 7131-51, 7181-91, no response perforate 6788-6828, slow pressure gas build to 2290 psi SIP 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Jerry Bowen Printed Name: Phil Kr~ge~",..< ,. ,i'i" ./<. Title: Drilling Manager Signature ''7',:''" 2..,;., ,i'''-' /<"~""~/".i/·---- Phone 907-263-7628 Date 11/24/03 , .,,' / f , /~ JI ,p"'" General: Item 1 a: Item 4b: Item 8: Item 13: Item 17: Item 20: Item 22: Item 23: Item 26: Item 27: Item 29: INSTRUCTIONS This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Classification of Service Wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water TPI (Top of Producing Interval). The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other ~ The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Used for Exploration wells only. Provide the permit number or 10 issued by the landowner for surface operations (DNR, BlM, MMS, CIRI, ARSC, etc.). True vertical thickness. Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-In, If no cores taken, indicate "none". List all test information. If none, state "None". Form 10-407 Revised 7/2003 r~l~rnp, IT' ðf happy valley #2 ') ) ~~ïi~tt::~~~Y~~H~~~~¡<i...<. '.. ¡'..¡... ...< ..··'¡I,~ J. ...........i,./../ .¡. ~r~~;.~~1~1~9~,~qaF~,!J:1~Qh@f~P~~~'l?q~.qq~.···. ~3t~:1)ie09iDe··· · gØØ~14:31:0q'~09Ø()' : :.::= :'::': .~, <: :.': : :.:::. :. :: .':'.; m''';I::~:'I>:'····'' ','.".' ."."..'. ......'... ....'.., ." ",.'. '·i·f'.i""· ::"·:::t:.:~;:"::·: :j: :~" !\:::+i:W!~' Bob, Attached is a word document with all the info you were looking for. Let me know how it turns out. Thanks, Carl Ulrich Sperry Sun Drilling Services Office 907-273-3537 Cell 748-3908 carl. ulrich@halliburton.com Conversion Results For C t t D .. t· . Conversion Results on en - escrlp Ion. F H d or· appy. oc Content-Type: application/msword Content-Encoding: base64 1 of 1 12110/2003 7:14 AM 59 deg 59 min 22.234 see 151 deg 29 min 41.809 see Meridian:S T2S R13W Section 22 2652.32FNL 2627.68FSL 3043.58FEL 2236.41FWL {:onversiou I-tesults :For: Total Depth .ASP Zone 4: 226264.90 2191182.65 59 deg 59 min 19.861 see 151 deg 29 min 35.640 see Meridian:S T2S R13W Section 22 2893.23FNL 2386.77FSL 2730.01FEL 2549.99FWL (:onversiou Jlesults }i'or: Top of Production Interval .AS:P Zone 4: 226573.22 2190934.73 59 deg 59 min 8.781 see 151 deg 29 min 5.115 see Meridian: S T2S R13W Section 22 4018.18FNL 1261.81FSL 1178.23FEL 4101.77FWL Conversionn.csultsFor: Surface :LocationH:appyVaUey #2 ¡\SP Zone 4: 228100.43 2189775.04 ) ) RKB to GL = 16.50' 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 6 ----, 78' of 13-3/8" conductor (driven to refusal) 9-S/8" surface casing @ 1,046' MO/1,046' VO cemented to surface SFO-1 CI Menthol Injection Port @ 2,S03' MO - 102.992" (drifted to 2.87") Operating pressure:: tbg pressure + 1,SOO psi HMC hanger/ZXP packer w/4" x 10' production seal bore in middle @2,886- 2,996' 7" intermediate casing @ +- 3,081' MO /+- 2,936' VO cemented to +/- 200' below 9-S/8" shoe Estimated TOC @ 3,600' ax Nipple @ 6,72S' ax Nipple @ 7,84S' Set clap @ 9,010' - dumpbaìled 40' of cement ax Nipple @ 9,275; xx plug set & calc carb dump bailed to +/- 9,258' ax Nipple@ 9,757; xx plug set & calc carb dump bailed to +/- 9,496 Bit sizes:::: 12~1/4", S~1/2" and 6-1/S" 13-3/8" 9-5/8" 1" 3112" 3 112" 68 41 26 9.2 BTC BTC BTC (KC) iBTC(ABMod 8. IBTC} 0' (I' 0' 2,996' 18' 1,046' 3,081' 10,215' K-55 L-80 L-80 L-80 9.2 L~SO IBTC (AB Mod) 0' 3,014' Perforations Date 10/20/03 9/30/03 9/9/03 8/15/03 8/15/03 8/14/03 8/14/03 TO:::: 10,225' MO 19,812' VO HappyValley02dated11242003 MD 6,788-6,828' 7,131-7,151' 9,050-9,070' 9,318-9,348' 9,534-9,564' 9,839-9,866' 10,012-10,052' TVD 6,410-6,449' 6,746-6,766' 8,641-8,661 ' 8,909-8,938 9,123-9,153 9,427-9,454' 9,600-9,640' REVISED: 11/25/03 DRAWN BY: DED ) ) 7/10/03 Turn Key Rig Move to Happy Valley #2. RU operation. 7/11/03 Continue Turn I(ey RU. 7/12/03 Rig up Top drive & nipple up diverter. 7/13/03 Drill to 60'. 7/14/03 Drill to 1,058'. RU to run 9-5/8" casing. 7/15/03 Run 9 5/8" casing. ND drilling nipple, diverter & diverter lines. NU BOPE. 7/16/03 Test pipe ranlS, blind ralUS, choke lines, kill line, choke luanifold to 250 psi low test/4500 psi high test, test annular to 250 psi low test; 3500 psi high test. 7/17/03 Drill to 1,712'. Unable to build angle, POH. PU BHA #2. 7/18/03 POOH to shoe. Drill from 3013'-3093'. 7/19/03 Circulate well. Pooh to 9 5/8" casing shoe pulled tight @ 2672' & 2400'. POOH lay down BHA. RU to run 7" casing. Run 7" casing to 3081'. 7/20/03 œtØJE. ) ') M/U csg hangar and wash down last 2'. Celnented 7" csg w/37.8 bbls 12.8 ppg lead slurry and 16.5 bbls 15.8 ppg class G tail slurry. Set csg pack off. Performed weekly BOP test. PU drill pipe. Conducted well SI drills. Install wear bushing. 7/21/03 Make-up BHA and RIH. Drilled shoe track and 20' of new hole to 3,119'. Performed LOT (11 ppg EMW). POH. PU 32 jts of 2-7/8" tbg and RIH. 7/22/03 Spot 38 bbls 15.8 ppg class G celnent. Squeezed all except 12 bbls into fonnation. Circ clean and POH. PU drilling BHA and RIH. Drill clnt froln 2,899 to 3,119'. Drilled 20' of new hole to 3,139'. 7/23/03 Perfonned LOT #2 (11.39 ppg EMW). POH. RIH wi 2-7/8 stinger. Bullheaded 227 SX 15.8ppg class G celnent. Circ clean and POH. Started RIH wi drilling BHA. 7/24/03 Drilled finn celnent froln 2,880' to 3,139'. Drilled 5' of new hole to 3,146'. Perfonned LOT #3 (12.9 ppg). Reviewed results wi Anchorage engineering and developed contingency plans and MOC documentation. Drilled froln 3,144' to 3,472'. 7/25/03 Drill to 4,792'. 7/26/03 Drill to 6,310'. 7/27/03 Drill to 7,672'. 7/28/03 Drill to 9,107' 7/29/03 Drill to 10,123'. ~. ~mlL ) ) 7/30103 Drill to 10,225'. Logging. Lay down BHA. RU WLU. 7/31/03 Picking up 3-1/2" liner asselnbly. RU to run cOlnpletion. 8/1/03 Ran 3-1/2" tubing. 8/2/03 Pick up BHA. RIH to top of Packer. Set down on liner top @ 2974'. Pressured up 300 psi on tbg. Pull out CBU, test packer to 830 psi (good test). 8/3/03 LD 2-7/8" tubing. RU to pick up 3 1/2' cOlnpletion. Pressure up on tubing to 3100 psi with annulus open, hold for 10 lnin, good test. LD landing joint. Install BPV. Test annulus to 300 psi. 8/4/03 ND BOPE. NU tree. Test hangar seals to 5000 psi, hold for 15 lninutes good test. Pull BPV. Install two way check. Test tree to 5000 psi good test. Pull two way check. Install BPV. 8/5/03 Begin RD. 8/6-9/03 Operations suspended. 8/1 0103 RU WLU, RIH with 2.856' tagged x-nipple at 6740' KB, SD at 3111 " 3243' 3493' 3525', 3557', 3621' 3684' 3747', 3842', and 4094', POH, RD. 8/11-13/03 Operations suspended C<IfIŒft ) ) 8/13/03 Ran cement bond test to 10,123'. Swabbed down fluid level to 2,900' 8/14/03 RD WLU and shoot FL. Perfed 10,012 to 10,052' and 9,839 to 9,866' 8/15/03 Perfed 9,534 to 9,564 and 9,318 to 9,348'. Well cOlnpleted and perfed. Released for evaluation and testing. 8/16/03 to 10/18/03 Well testing and evaluation. Refer to logs for testing data. CONFŒNTtM. 5Jel'T'V-5U1 PaQe: 1 Operator: Unocal Field: Happy Valley Well: HV #2 Location: Kenai Peninsula Borouqh 1:1..1 LLI N EI .. ..VIC II!! Rig: Nabors 129 Job # :AK-MJ-0002550357 Survey and Drilling Parameters North Ref: True Declination: 20.020 VS Dir : 307.140 (from Wellhead) WELLBORE SURVEY DRIWNG PARAMETERS 'easured Incl Azi Vertical Vertical Coordinates DLS Build Turn WOB RPM Flow Stand Orientation Tool ROP BHA Comment Depth AnQle Dir Depth Section N/S EN/ Rate Rate Rate Pipe From To Face No. (ft) (deg) (deg) (ft) (ft) (ft) (ft) (°/100') (°/100') (o/100') (klbs) (gpm) (psi) (ft) (ft) (deg) (ft/hr) (#) 0.00 0.00 0.00 0.0 0.0 0.0 0.0 0.00 0.00 0.00 2 40 380 400 15 1 Tioon 106.89 3.22 100.65 106.8 -2.7 -0.6 3.0 3.01 3.01 0.00 1 '-~- 195.69 2.72 101.78 195.5 -6.8 -1.4 7.5 0.57 -0.56 1.27 12 90 590 1400 90 1 322.35 2.58 100.61 322.0 -12.1 -2.6 13.2 0.12 -0.11 -0.92 12 90 590 1400 90 1 444.57 1.89 100.51 444.2 -16.4 -3.5 17.9 0.56 -0.56 -0.08 12 90 590 1400 90 1 600.84 1.40 104.52 600.4 -20.4 -4.4 22.3 0.32 -0.31 2.57 12 90 590 1400 90 1 796.47 1.13 115.29 796.0 -24.5 -5.8 26.3 0.18 -0.14 5.51 12 90 590 1400 90 1 1020.82 0.92 131.31 1020.3 -28.5 -8.0 29.7 0.16 -0.09 0.00 12 90 590 1400 90 1 1139.24 0.21 301.72 1138.7 -29.2 -8.5 30.2 0.95 -0.60 0.00 2 600 3100 1120 1139 40L 150 2 1234.77 0.90 332.05 1234.2 -28.4 -7.7 29.7 0.76 0.72 0.00 2 100 600 3100 1139 1165 40L 550 2 1331.67 2.61 306.15 1331.1 -25.5 -5.7 27.6 1.90 1.76 0.00 2 100 580 2900 1242 1291 40L 550 2 1429.07 2.31 313.54 1428.4 -21.3 -3.1 24.4 0.45 -0.31 7.59 2 100 580 2900 1338 1386 SOL 500 2 1523.77 4.38 302.48 1522.9 -15.8 0.2 19.9 2.28 2.19 -11.68 2 490 2200 1436 1482 SOL 40 2 1522 1524 SOL 2 1619.14 6.51 316.00 1617.8 -6.8 6.0 13.1 2.59 2.23 14.18 2 490 2200 1524 1578 50L 40 2 1618 1619 50L 2 1706.42 9.02 314.55 1704.3 4.9 14.4 4.8 2.88 2.88 -1.66 4 100 580 2900 1619 1673 50L 500 2 1760.18 11.55 315.25 1757.2 14.4 21.2 -2.0 4.71 4.71 1.30 5 60 500 2900 1708 1760 50L 500 3 '-' 1802.90 12.21 313.44 1799.0 23.1 27.3 -8.3 1.77 1.54 -4.24 4 430 1900 1802 1803 HS 40 3 1898.29 16.99 313.68 1891.3 47.0 43.9 -25.7 5.01 5.01 0.25 5 60 500 2900 1803 1860 HS 500 3 1994.57 22.27 315.57 1981.9 79.0 66.6 -48.7 5.52 5.48 1.96 4 430 1900 1900 1950 HS 50 3 1990 1995 30R 3 2089.27 26.31 313.61 2068.2 117.6 93.9 -76.4 4.35 4.27 -2.07 5 60 500 2900 1995 2044 30R 500 3 I 2185.54 27.48 311.08 2154.1 161.0 123.2 -108.6 1.70 1.22 -2.63 8 60 500 2900 2090 2135 30R 400 3 2280.92 28.12 305.20 2238.5 205.4 150.7 -143.6 2.95 0.67 -6.16 8 60 500 2900 2186 2235 30R 400 3 2377.64 28.99 301.66 2323.5 251.6 176.1 -182.2 1.97 0.90 -3.66 8 430 1900 2360 2378 HS 80 3 .' 2474.16 30.46 302.73 2407.3 299.2 201.6 -222.7 1.62 1.52 1.11 8 60 500 2900 2378 2409 HS 400 3 2570.68 30.15 300.85 2490.6 347.7 227.3 -264.1 1.03 -0.32 -1.95 8 60 500 2900 400 3 Z - 5JE!l'T'V-5U1 PaQe: 2 Operator: Unocal Field: Happy Valley Well: HV #2 Location: Kenai Peninsula Borouqh 1:1..1 LLI N EI .. ..VIC II!! Rig: Nabors 129 Job # :AK-MJ-0002550357 Survey and Drilling Parameters North Ref: True Declination: 20.02° VS Dir : 307.14° (from Wellhead) WELLBORE SURVEY DRIWNG PARAMETERS ~easured Incl Azi Vertical Vertical Coordinates DLS Build Turn WOB RPM Flow Stand Orientation Tool ROP BHA Comment Depth AnQle Dir Depth Section N/S E/W Rate Rate Rate Pipe From To Face No. (ft) ( deg) (deg) (ft) (ft) (ft) (ft) (°/100') (°/100') (°/100') (klbs) (gpm) (psi) eft) (ft) (deg)(ft/hr) (#) 2668.75 29.79 301.16 2575.6 396.4 252.5 -306.0 0040 -0.37 0.32 8 60 500 2900 400 3 2761.23 29.36 299.29 2656.0 441.7 275.5 -345.5 1.10 -0.46 -2.02 8 60 500 2900 400 3 .~ 2856.60 28.90 300.48 2739.3 487.8 298.6 -385.7 0.78 -0.48 1.25 8 60 500 2900 400 3 2955.13 29.01 300.18 2825.5 535.1 322.7 -426.9 0.18 0.11 -0.30 8 430 1900 2951 2955 HS 80 3 3031.24 28.99 305.22 2892.1 571.9 342.6 -457.9 3.21 -0.03 6.62 8 60 500 2900 2955 2986 HS 400 3 3211.16 27.77 306.65 3050.4 657.4 392.8 -527.2 0.78 -0.68 0.79 5 100 280 2600 150 6 3402.14 26.57 306.23 3220.3 744.6 444.6 -597.3 0.64 -0.63 -0.22 5 100 280 2600 150 6 3593.84 24.44 306.27 3393.3 827.1 49304 -663.9 1.11 -1.11 0.02 6 100 290 2800 130 6 3785.48 25.85 306.85 3566.8 908.5 541.9 -729.3 0.75 0.74 0.30 8 100 290 2700 3680 3710 HS 140 6 3976.63 24.92 306.09 3739.5 990.5 590.6 -795.2 0.52 -0.49 -OAO 7 100 280 2700 125 6 4168.88 23.89 304.84 3914.5 1069.9 636.7 -859.9 0.60 -0.54 -0.65 7 100 280 2700 125 6 4358.51 22.82 304.49 4088.6 1145.0 679.5 -921.7 0.57 -0.56 -0.18 8 100 300 2900 150 6 4550.38 21.45 303.77 4266.4 1217.2 720.1 -981.5 0.73 -0.71 -0.38 8 100 300 2900 138 6 4741.93 20.40 304.14 4445.3 1285.5 758.3 -1038.3 0.55 -0.55 0.19 8 100 300 2900 140 6 4931.89 19.51 303.11 4623.8 1350.2 794.2 -1092.2 0.50 -0.47 -0.54 8 100 300 2900 140 6 5125.33 19.25 305.64 4806.3 1414.3 830.4 -1145.2 0.45 -0.13 1.31 8 100 305 3300 5047 5077 60R 120 6 5315.10 17.67 304.94 4986.3 1474.3 865.1 -1194.3 0.84 -0.83 -0.37 8 100 305 3300 120 6 5507.99 16.27 304.64 5170.8 1530.6 897.2 -1240.5 0.73 -0.73 -0.16 8 100 305 3300 120 6 '-" 5699.97 14.49 302.35 5355.9 1581.4 925.4 -1282.9 0.98 -0.93 -1.19 8 100 305 3300 120 6 5881.33 15.98 303.84 5530.9 1628.9 951.4 -1322.8 0.85 0.82 0.82 8 100 305 3300 5808 5835 60R 120 6 6079.45 14.80 302.44 5721.9 1681.4 980.2 -1366.8 0.62 -0.60 -0.71 8 100 305 3300 120 6 6271.70 15.15 309.52 5907.6 1731.0 1009.4 -1406.9 0.97 0.18 3.68 6 100 205 1900 6192 6219 90R 45 6 i 6461.38 13.96 308.39 6091.2 1778.6 1039.3 -1444.0 0.64 -0.63 -0.60 8 100 300 3600 145 6 6653.42 12.85 308.06 6278.0 1823.1 1066.9 -1479.0 0.58 -0.58 -0.17 8 100 300 3600 145 6 6938.87 11.02 308.68 6557.3 1882.1 1103.5 -1525.2 0.64 -0.64 0.22 8 100 300 3600 140 6 7132.67 10.03 307.30 6747.8 1917.5 1125.3 -1553.1 0.53 -0.51 -0.71 8 100 300 3600 140 6 e 7320.91 9.43 307.20 6933.4 1949.3 1144.6 -1578.5 0.32 -0.32 -0.05 8 100 290 3300 75 6 rn 2 ~. - r- CJ ~ -n - c::J r-n Z t :::z::- r- 5JE!!I"T'V-5U1 PaQe: 3 Operator: Unocal Field: Happy Valley Well: HV #2 Location: Kenai Peninsula Borouqh 1:1..1 LLI N rI .. ..VIC II!! Rig: Nabors 129 Job # :AK-MJ-0002550357 Survey and Drilling Parameters North Ref: True Declination: 20.02° VS Dir : 307.14° (from Wellhead) WELLBORE SURVEY DRilliNG PARAMETERS 1easured Incl Azi Vertical Vertical Coordinates DLS Build Turn WOB RPM Flow Stand Orientation Tool ROP BHA Comment Depth AnQle Dir Depth Section NlS EJW Rate Rate Rate Pipe From To Face No. (ft) (deg) (deg) eft) eft) (ft) (ft) (°/100') {o/100'} (0/100') (klbs) (gpm) {psi} (ft) eft) (deg)(ft/hr) (#) 7514.41 9.50 305.21 7124.2 1981.1 1163.4 -1604.1 0.17 0.04 -1.03 8 100 290 3300 7400 7408 HS 75 6 7704.87 11.81 301.51 7311.4 2016.3 1182.6 -1633.6 1.26 1.21 -1.94 10 100 290 3600 7592 7628 25R 65 6 7897.56 9.99 303.15 7500.6 2052.6 1202.1 -1664.4 0.96 -0.94 0.85 10 100 290 3600 65 6 ~. 8087.51 9.13 304.27 7687.9 2084.0 1219.6 -1690.6 0.46 -0.45 0.59 10 100 290 3600 65 6 8279.98 8.50 307.47 7878.1 2113.5 1236.8 -1714.6 0.41 -0.33 1.66 10 100 280 3500 70 6 84 71.84 7.87 307.88 8068.0 2140.8 1253.5 -1736.2 0.33 -0.33 0.21 10 100 280 3500 70 6 8664.15 7.52 309.08 8258.6 2166.6 1269.5 -1756.3 0.20 -0.18 0.62 10 100 280 3500 70 6 8855.56 7.41 311.00 8448.4 2191.4 1285.5 -1775.4 0.14 -0.06 1.00 10 100 280 3500 70 6 9044.87 6.73 311.56 8636.2 2214.6 1300.9 -1792.9 0.36 -0.36 0.30 10 100 280 3500 70 6 9236.95 5.87 312.03 8827.2 2235.7 1314.9 -1808.6 0.45 -0.45 0.24 10 100 280 3800 50 6 9426.73 4.98 312.50 9016.1 2253.5 1327.0 -1821.9 0.47 -0.47 0.25 10 100 280 3800 50 6 9618.51 4.34 316.58 9207.2 2269.0 1337.9 -1833.0 0.38 -0.33 2.13 10 100 280 3800 50 6 9811.71 4.15 309.37 9399.9 2283.2 1347.6 -1843.4 0.29 -0.10 -3.73 10 100 280 3800 50 6 10094.63 4.17 308.40 9682.1 2303.7 1360.5 -1859.4 0.03 0.01 -0.34 10 100 280 3800 50 6 10160.38 3.99 307.05 9747.7 2308.4 1363.4 -1863.1 0.31 -0.27 -2.05 10 100 280 3800 50 6 10225.00 3.99 307.05 9812.1 2312.9 1366.1 -1866.7 0.00 0.00 0.00 6 ~ ) ) (jé¡3-IJ3 Unocal Alaska 909 W. 9th Avenue Anchorage, AK 99501 Tele: (907) 263-7889 Fax: (907) 263-7828 E-mail: oudeand@unocaLcom UNOCALi) Debra Oudean G & G Technician Date: Oct 23, 2003 To: AOGCC Lisa Weepie 333 W. ill Ave. Ste#100 Anchorage, AK 99501 ~~(:il'jl 4-19\lo3 j Q. b--' Permit to Drill and all attachments Well Completion report and all attachments ~.·~~ttt ~JI ~11,N~ ;~;~:%r:~rji~ ·i~~{' 1;,~n'r:~\If~:'~ \~~~rJ~1 ~ER'·f·A.I'l.r'J,,^',', .',1,\,:1 D',.,,~~1' r ,'I¡Î/ t~~.;' ~;>~~ ~ ,J, I~r 11, ¡~\~J~'ò \ ¡\r,II~~i,,\j, SCA£E: '~~'L"~~I\~~";~~ \,~: , , .;,v~~1; , I, ~ C ,', FltM CD RÄPER t ~~~~ ~1kº-¡IÇ:~ ~ º~,~~g¡;:II~:: '.,~J.N~' i,/¡tJ:Ù,Ü. ~~i;.¡~ ;U;'"J' ,~J!J'~¡" ~T.151~çEl~!~!?ººªJªª~g~~1~º m :11~-.i[]1 0' : 2/5 : 7/30/2003: 3071-8867 l' Oi 0: O· ilNCH 2/5 I, 7/30/2003' 2927-8462 INCH I i 12 INCH I 7/30/200313071-8867 111010'1 151NCH 18/13/200313120-10111 1~1~[11 5 INCH . 8/20/2003 9100-9628 1 0' 1 : 01 0: 01 I I . "~~~lm~~1~\::~:;~~'&(~,J~I>¡1?!;~I}: i"r:,¡J~'\i' £a~\ 'II lii,E&~~~~a~ik " , . I?" HSD PÓWER JET 2006H~MX- GAMMA RAY/C~~. ARRAY INDUCTION - LITHO DENSITY COMPENSATED NEUTRON DIPOLE SHEAR SONIC ARRAY INDUCTION-LITHO DENSITY-COMPENSATED NEUTRON-DIPOLE SHEAR SONIC-TVD ¡CALIPER LOG INTEGRATED CEMENT VOLUME 1CEMENT MAP & VDL COMPLETION RECORD 21/8" POWER EJ4 SPF - 0 DEGREE PHASED DUAL GAMMA RAY - STABILIZED LITHO-DENSITY - COMP THERMAL NEUTRON TVD FIELD FLUID DEPTH DETERMINATION - PRESSURE, TEMP GR/CCL ]FORMATION LOG ¡PRESSURE TEMP LOG RATE OF PENETRATION-DUAL GAMMA RAY- ELECTROMAGNETIC WAVE RESISTIVITY TVD RATE OF PENETRATION-DUAL GAMMA RAY- ELECTROMAGNETIC WAVE RESISTIVITY MD FIELD 0] o 01 I 2 INCH 7/31/2003: 92-1 0225 0: 0 0: I 5 INCH 8/20/2003 7000~9751 0' 1 0 1..7/31/2003]67 -10225 1'1 OJO] 0 I I 8/20/2003167-1 0225 01 oifl 0 2 INCH 7/30/2003 92-10225 1 0 0 0 2 INCH 7/30/2003 92-10225 0 0 0 Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. Date: , (' Received By: ---0. ~ ~,~---... ~é)\.~Y\. \-~ '--<2_ Q_ ~ ~'^\~ "I 1'1~~' oc ~ 2. ,-. I"' 1'...,,: _. . -'~~\)fy\ ~~ J~~~r,;;,~~:J·çC! ;;~::¡;.: (":'. THRU: tit MORANDUM -- State of Alaska Alaska Oil and Gas Conservation Commission Randy Ruedrich Commissioner Jim Regg ~ð~ )Ò~'Zb\ ö:; P.I. Supervisor ( DATE: October 1, 2003 SUBJECT: Plug & Abandonement Happy Valley #2 Unocal / Happy valley Exploratory ":~11a FROM: Jeff Jones Petroleum Inspector ,."'. ''''i''~ CONFIDENTIAL Section: 22 Lease No.: C-061590/89 Operator Rep.: Don Fowler CasinalTubina Data: Conductor: 133/8" 0.0. Shoe@ 78' MD Surface: 95/8" 0.0. Shoe@ 1046' MD Intermediate: 7" O.D. Shoe@ 3081' MD Production: 0.0. Shoe@ Liner: 0.0. Shoe@ Tubing: 3.5" 0.0. Tail@ 10222' MD o om UD 0 emen e..m en Ie a ovepug es pple Annulus BridQe PluQ 9010' MD 8924' MD Yes 8.6 PPQ TVDe Plua Open Hole Perforation Annulus Casing Stub Surface October 1, 2003: I traveled to Unocal's Happy Valley #2 well to witness the wireline tag of an intermediate cement abandonment plug. Don Fowler was the Unocal representative for the procedure today. He indicated that the subject plug consisted of a bridge plug set in the tubing at 9010' MD with 86' of 16.4 ppg Schlumberger cement kit dump bailed above it. A wireline unit ran in the hole with a 300# weight bar and sample catcher assembly. I witnessed the top of cement tagged solidly at 8908' MD. This plug isolates the intended perforations in compliance with AOGCC regulation 20 AAC 25.112 (c) (1) (E). TVDe Plua lb tt ) Township: 2S Drilling Rig: Range: 13W Rig Elevation: 16' Meridian: Seward Total Depth: 10,225' Casino Removal: Casing Cut@ Feet Casing Cut@ Feet Casing Cut@ Feet Casing Cut@ Feet Casing Cut@ Feet Casing Cut@ Feet Founded On Bottom fC t Pluaaina Data: TOD of Cement D th V'f d? Pressure T tA r d Mud Weight b I Founded on: Bottom Bridge plug Balanced Retainer Verified? Drillpipe tag Wireline tag C.T. Tag No ,·r'! ",í¡.dh';'; n )1': "1 ~_¡. ,')vl'\.;V;'t!I.L v\' :¡ Summary: I witnessed the successful wireline tag of an intermediate cement plug placed in Unocal's Exploratory well Happy Valley #2. Distribution: orig - Well File c - Operator c - DNRlDOG c - Database c - Rpt File c - Inspector Rev.:5/28/00 by L.R.G. f£.i Attachments: wellbore schematic (1) 2003-1 001_P&A_HapPL Valley#2jj.xls 10/23/2003 ~ ., . . · Happy Valley # 2 .S & plugs 09-18-03 . ex nipple @ 6734' ex nipple @ 7854' ex Nipple @ 8920' ex Nipple @ 9283' ex Nipple @ 9766' XX plug set 08-19-03 Dump bail Cacarb & Sand to 9,469 9-04-03 9/30/2003 Perforations 7131' - 7151' 9/30/2003 Perforations 7181' -7191' 9/28/2003 Halliburton Composite plug @9010' 9/9/2003 Perferations @ 9050' . 9070' 20'- 6 spt 2" hollow 1.6 MMCFPD @ 1574psi. Frack 09-10-03 Water back Unloaded with e.J. 09-13-03 - Water & little gas 9/8/2003 17' sand-top @ 9258' Plug set 9-8-03 8/15/03 Perforations 9318 - 9348' 1,7 MMCFPD 572 TBG Pressure Fracked 09-06-03 +/- 2mmcf/d 259' Sand Top @ 9496' 8/15/03 Perforations 9534' - 9564' 8/14/03 Darf'nNltjnn!l: gAng' _ 98661 Happy Valley #2 pJugback (tagging cement) ) 'vo~-Iß Subject: Happy Valley #2 plugback (tagging cement) Date: Wed, 1 Oct 2003 07: 13 :42 -0800 From: "Bowen, Jerry -Alaska" <jbowen@unocal.com> To: <winton_aubert@admin.state.ak.us> ~ ) Winton; To summarize our converstaion... Summary of Events: Unocal set a Halliburton composite 3 1/2" Bridge Plug (rated to 1 0,000 psi in our well conditions) at 9010' in the subject well, which is 40' above the previous perforated interval, on 9/28/03. We then dump-bailed 44' of liquid cement on top of the plug. On 9/29/03, after approximately 16 hours of cement curing time, we bled the SIWHP down from 2800 psi to 1550 psi to provide an under-balanced perforating environment and as a negative pressure test on the plug. We then attempted to tag the plug with a 2" hollow carrier perf gun, but we tagged the top of the bridge plug instead. We did observe some indications that the cement was thickening, but were able to work the gun down through the cement without difficulty. We aborted the perf job and made two addiitonal runs with the cement dump-bailer, bringing the total cement column height to approximately 73'. On 9/30/03, we again ran in the well with a perf gun. There were definite indications that the cement was beginning to set-up, starting at 8937', but we were able to work the gun downhole to 9004' (6' above the composite bridge plug) without difficulty. Rather than pull out of the well with a live perf gun a second time, I contacted you to discuss the situation, and Jeff Jones reportedly discussed the matter with his supervisor from the field. Ultimately, it was agreed by all parties that Unocal could proceed with the perforating and testing of the T -17 Upper Tyonek Sand, provided we agreed to re-tag and/or re-set the 25' cement plug immediately above the 9050-9070' perfs before we abandon the T-17 perfs or perforate additional intervals uphole above the T-17. We're still evaluating the T-17 Sand, but it's my understanding that we will attempt to tag the top of cement this AM. Thanks. Jerry F. Bowen, P.E. Advising Drilling Engineer Office: 907-263-7640 Cell: 907-360-2490 Home: 907-688-2278 Fax: 907-263-7884 ) STATE OF ALASKA ) ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL 20 ACC 25.280 Alter Casing 0 Change Approved Program 0 2. Operator Name: Union Oil Company of California/Unocal 3. Address: 1. Type of request Abandon 0 Operation Shutdown 0 Plug Perforations X Perforate New Pool 0 4. Current Well Class Suspend 0 Repair Well 0 Pull Tubing 0 Development 0 Statigraphic 0 9. Well Name/Number: PO Box 19-0247, Anchorage, AK 99519 7. KB Elevation (ft): 739 8. Property Designation: C-061590 & C-061589 11. Total Depth MD (ft): 10,225 Casing Structural Conductor Surface Intermediate Production Signature: ~ Perforate X Stimulate X Variance 0 Time Extension 0 Re-enter Suspended Well 0 5. Permit to Drill Number: 203-113 / 1;.J6 A- q It"' I 20'>3 Dn 1/2tÞß .t~4\ q Iz. (Ã cJ.rL.. V"l) ,," (J J Annular Disposal 0 Other 0 Exploratory X 6. API Number: /. Service 0 50-231-20014 Happy Valley #2 /' wildcat in Tyonek & Beluga Sands IN/A 10. Field/Pool(s): PRESENT WELL CONDITION SUMMARY Eff Dep MD(ft): Eff Depth TVD (ft): 10,175 9,762 TVD (ft): 9,812 Length Size MD 78' 1046' 3,081' 13 3/8" 95/8" 78' 1 037' 3,081' 7" 7J~ Conditions of approval: Notify Commission so representative may witness FOR COMMISSION USE ONLY Plug integrity_ Other: BOP Test_ Mechanical Integrity Test_ Subsequent form ~red ~~ '-/ 0 ì Approved by: l............") / '- ~ Commissioner Submit in duplicate ORG NAL Plugs (measured): xx plugs @ 9757' (w/61' CaC03) & 9275' (w/17' CaC03) TVD Burst Collapse 78' 1037' 2,936' 3,450 6,870 7,240' Liner 7,219' 31/2" 10,215' 9,752' 10,160 Perf Depth MD (ft): Perf Depth TVD (ft): Tubing Size: Tubing Grade: (see attached diagram) (see attached diagram) 3 1/2" L-80 Packers and SSSV Type: Packers and SSSV MD (ft): Baker HMC/ZXP combination liner hanger/packer w/1 0' x 4" seal bore (no SSSV) packer top @ 2,886' MD 12. Attachments: Detailed Operations Summary 13. Well Class after proposed work: Description Summary of Proposal X BOP Sketch 0 Exploratory X Development 0 14. Estimated dg!e' f6féOïymencing operations: 15. Well Status after proposed work: (9/1~3 16. Verbal AP~- N/A Date: N/A OilD Gas X Plugged 0 Comission Representative: N/A WAG 0 GINJ 0 WINJ 0 17. I hearby certify that the foregoing is true to the best of my knowledge. Contact: Jerry F. Bowen Printed Name: Jerry F. Bowen, P.E. Title: Advising Drilling Engineer Phone: 907 -263-7640 Sundry Number: ,303-2 r1 Location clearance_ 1,950 4,750 5,410' 10,530 Tubing MD(ft): 3,014' Service 0 Abandoned 0 WDSLP 0 -zk Date: 912¥103 BY ORDER OF THE COMISSION Date <-~ 2, C<1J ') Form 10-403 Revised 2/2003 5 6 7 8 9 10 11 12 13 14 ) ) SUMMARY OF PLANNED OPERATIONS Happy Valley Well #2 South Kenai Gas Project Kenai Peninsula, Alaska 1 Notify AOGCC 24 hours in advance. RU S-line. Run gauge ring & tag fill. Dump bail // 25' of cement on top of fill. SD 24 hours & tag to verify. Notify AOGCC 24 hours in advance. Set composite BP between 9000' & 9010' (within ,/ 50' above perfs 9050' - 9070') & dump bail add'l 25' of cement on top. SD 24 hours & tag to verify. /' Perforate T-17 Upper Tyonek Sand 7130' -7194' & production test. Will perforate top, middle & lower portion of sand & flow test after each gun run. /' Set composite BP at +1- 7100' (this step is optional). Decision on whether or not to isolate the T -17 from the T -10, either pennanently with cement or temporarily with CaC03 will be made based on test results, plan forward, etc.. Perforate T-10 Upper Tyonek Sand 6788' - 6848' & production test. Will perforate top, middle & lower portion of sand & flow test after each gun run. Set 'XX' blanking plug in BX Nipple @ 6,725' & dump bail 15' ofCaC02 on top. Perforate & production test the lower Beluga Sequence (specific perf intervals n.y.d.) RID BJ Services, install tree saver & fracture Stimulate lower Beluga perfs Unload well and flow test as required. Set composite BP at +1- 7100' & dump bail 25' of cement on top (optional step). /' Perforate & production test a second Beluga interval (specific perf interval n.y.d.) RID BJ Services, install tree saver & fracture Stimulate second Beluga perfs Unload well and flow test as required. RID Fracture Stimulation Equipment from Location. 2 3 4 Note: Final perforation intervals not yet determined. The general plan to test a total of four intervals is ...../ subject to change depending on test results and/or time constraints. UNOCALe RKB to GL = 16.50' L1 fff{ t~:}~:z I 3 ::~:}~{{{ ...................~ ..................... ................... ~.................... ......... .......... .......... ........... ......... .......... .......... ........... :}~{:~:}~: :~:ä{{{:~: .......... ........... ......... .......... .......... ........... ......... .......... .......... ........... ......... .......... .......... ........... ......... .......... .......... ........... ......... .......... .......... ........... ......... .......... )))If ~~ff~r 1 .......... }}} 6 ...... r::?::~::2~;.·, :::~l::: tu 1 t S : .: ::~..:. ¿;¡6'Ø -MJ«fI .. =.Z .:: 113D~qt/-' . . : : 008. : . 7 í?tfç .. . . ~'~". ~¡~ .:' r~::: .::' qooo ... O· . .. -.,.-- . . . ,.,'., . . .. . " ><.10" P-':. 0..:: '5<.11' 0: D· .c. '- TD = 10,225' MD / 9,812' VD HappyValley02dated9172003.doc ) ) S. Kenai Gas Project Happy Valley #02 Completion Status .... [ ". ~ JewelrY Detail 1. 78' of 13-3/8" conductor (driven to refusal) 2. 9-5/8" surface casing ~ 1,046' MD/1 ,046' VD cemented to surface SFO-1 CI Menthol Injection Port @ 2,503' MD -ID 2.992" (drifted to 2.87") 3. Operating pressure = tbg pressure + 1,500 psi HMC hanger/ZXP packer w/4" x 10' production seal bore in middle @2,886- 4. 2,996' 7" intermediate casing @ +- 3,081' MD /+- 2,936' VD -- cemented to +/- 200' 5. below 9-5/8" shoe 6. Estimated TOC @ 3,600' 7. BX Nipple ~ 6,725' 8. BX Nipple ~ 7,845' 9. BX nipple @ 8,912' 10. BX Nipple @ 9,275; xx plug set & calc carb dump bailed to +/- 9,258' 11. BX Nipple ~ 9,757; xx plug set & calc carb dump bailed to +/- 9,496 .. . ~.~:. Bit sizes = 12-1/4",8-1/2" and 6-1/8" CASING DETAIL SIZE WT GRADE CONN TOP BOTTOM 13-3/8" 68 K-55 BTC 0' 78' 9-5/8" 47 L-80 BTC 0' 1,046' 7" 26 L-80 BTC (KC) 0' 3,081' 3 1/2" 9.2 L-80 IBTC(ABMod & IBTC) 2,996' 10,215' TUBING DETAIL SIZE WT GRADE CONN TOP BOTTOM 3 1/2" 9.2 L-80 IBTC (AB Mod) 0' 3,014' Perforations Date 9/9/03 8/15/03 8/15/03 8/14/03 8/14/03 MD 9,050-9,070~ 9,318-9,348' 9,534-9,564' 9,839-9,866' 10,012-10,052' TVD 8,641-8,661' 8,909-8,938 9,123-9,153 9,427 -9,454' 9,600-9,640' REVISED: 09/26/03 DRAWN BY: DED ) LtJG¡\. ~ Is/ 2.00'3 ) STATE OF ALASKA ALASKA Oil AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL 20 ACC 25.280 10. Field/Pool(s): PRESENT WELL CONDITION SUMMARY Eft Dep MD(ft): Eft Depth TVD (ft): 10,175 9,762 Size MD Casing Structural Conductor Surface Intermediate Production Liner 7,219' 31/2" 10,215' 9,752' 10,160 Perf Depth MD (ft): Perf Depth TVD (ft): Tubing Size: Tubing Grade: (see attached diagram) (see attached diagram) 31/2" L-80 Packers and SSSV Type: ,,// Packers and SSSV MD (ft): Baker HMC/ZXP combination liner hanger/packer w/ 10' x 4" seal bore (no SSSV) packer top @ 2,886' MD / 12. Attachments: Detailed Operations Summary 13. Well Class after proposed work: Description Summary of Proposal X BOP Sketch D Exploratory X Development D 14. Estimated date for commencing operations: 15. Well Status after proposed work: Abandon D Suspend D Alter Casing D Repair Well D Change Approved Program D Pull Tubing D 2. Operator Name: Operation Shutdown D Plug Perforations D Perforate New Pool D 4. Current Well Class 1. Type of request Union Oil Company of California/Unocal 3. Address: Development D Statigraphic D 9. Well Name/Number: PO Box 19-0247, Anchorage, AK 99519 7. KB Elevation (ft): 739 8. Property Designation: C-061590 & C-061589 11. Total Depth MD (ft): 10,225 TVD (ft): 9,812 Length 78' 1046' 3,081' 13 3/8" 95/8" 78' 1 037' 3,081' 7" 9/6/2003 16. Verbal Approval: N/A Date: N/A Comission Representative: N/A OilD WAG 0 17. I hearby certify that the foregoing is true to the best of my knowledge. Printed Name: Jerry F. Bowen. P.E. Signature: 4t }. ~ FOR COMMISSION USE ONLY Conditions of approval: Notify Commission so representative may witness Plug integrity_ BOP Test_ Mechanical Integrity Test_ Other: Subsequent form repired 10- 4 01 . Approved by: ~~ ~ ~~ommissioner Submit in duplicate Perforate. Stimulate X Variance D Time Extension D Annular Disposal D Other D Re-enter Suspended Well D 5. Permit to Drill Number: 203-113 / Exploratory X 6. API Number: Service D 50-231-20014 / Happy Valley #2 ,// wildcat in Tyonek & Beluga Sands / N/A Plugs (measured): XX' plug w/ 8' CaC03 @ 9,757' MD TVD Burst Collapse 78' 1037' 2,936' 3,450 6,870 7,240' 1,950 4,750 5,410' 10,530 Tubing MD(ft): 3,014' Service D Gas X GINJ 0 Plugged D Abandoned 0 WINJ D REee1\1[-:'-) Contact: Jerry F. Bowen . . Advising Drilling EngirSfp 0 5 2003 ~ask8 Oil & Gas Cons. Comm ssior. 907-263-7640 D~ Title: Phone: Sundry Number: ~:j, :;) (ç í Location clearance_ BY ORDER OF THE COMISSION Date 7/o/DJ 1P:jJ("iD' {¡ß,~; r:¡:"t:::" 1 ff\\ = _. M~ I\J.~ - ~'" 8 20D} ORtGir\~AJ Form 10-403 Revised 2/2003 SEP ~ RKB to GL = 16.50' 1 6 TO:::: 10,225' MO 19,812' VO HappyValley02dated08052003 1. 7S' of 13-3/8" conductor (driven to refusal) 2.9-5/8" surface casing @ 1,046' MD/1,046' VD cemented to surface 3. SFO-1 CI Menthollntection Port @ 2,503' MD - ID 2.992" (drifted to 2.87") Operating pressure:::: tbg pressure + 1,500 psi 4. HMC hanger/ZXP packer wI 4" x 10' production seal bore in middle @ 2,886-2,996' 5. 7" intermediate casing @ +~3,081' MD 1+- 2,936' VD - cemented to +1-200' below 9-5/S" shoe 6. Estimated TOC @ 3,600' 7. BX Nipple@8,912' 8. BX Nipple @ 9,275' 9. BX Nipple@ 9,757'; XX plug set in calc carb dump bailed to +1- 9,749' Bit sizes:::: 12-1/4", 8~1/2" and 6-118" 13·3/8" 9·518" 1" 31/2" 18' 1,046' 3,081' 10,215' 68 41 26 9.2 K-55 BTC 0' L·80 BTC 0' L·80 BTC (KC) 0' L-80 IBTC(ABMod 8. iBTC) 2,996' 3 1/2" 3,014' 9.2 L-SO IBTC (AB Mod) 0' Perforations Date MD 8/15/03 9,318-9,348' (1,7 MMCFPD 572 TBG Pressure) 8/15/03 9,534-9,564' 8/14/03 9,839-9,866' 8/14/03 10,012-10,052' TVD 8,909-8,938 9,123-9,153 9,427-9,454' 9,600-9,640' REVISED: 09/05/03 DRAWN BY: DED ) ) SUMMARY OF PLANNED OPERATIONS Happy Valley Well #2 South Kenai Gas Project Kenai Peninsula, Alaska 1. RU S-line. Run 2.75" gauge ring to +1-9,600' MD /' 2. Dump bail CaCo3 to (cover perfs @ 9534 - 9564') bring top ofCaC03 to +1-9,500' MD 3. Install tree saver. RU B1. RU sand separator & flow back equipment (including test separator). 4. Hold safety meeting. 5. Fracture Stimulate perforations @ 9,318' - 9,348' MD wi 60.5k Ibs 20/40 Carbolite & 23.9k gal ./ gelled diesel. Displace (flush) wi additional3.3k gal diesel. 6. Flow well to force closure, clean-up & test well to establish J.P. (minimum length celan-up +1-12 hrs). Frac Happy Valley # 1 while conducting steps #7 through #9 below. 7. RU S-line. Set composite BP @ +1-9,275'. 8. Dump bail +1-10' ofCaC03 on top of composite BP. / 9. RU E-line. Perforate 9,050' - 9,070' MD. 10. Fracture Stimulate perforations @ 9,050' - 9,070' MD wi 30.25k Ibs 20/40 Carbolite & 20.65k ~. gal gelled diesel. Displace (flush) wi additional3.25k gal diesel. 11. Flow well to force closure, clean-up & test well. W6A- 1/z-t (l-"C>~ ) STATE OF ALASKA ) ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 1. Type of Request: Abandon: Suspend: Operation shutdown: Alter casing: _ Repair well: _ Plugging: _ Change approved program: x Pull tubing: Variance: 5. Type of well: Development: Exploratory: Stratigraphic: Service: Re-enter suspended well: Time extension: Stimulate: Perforate: Other: 6. Datum elevation (DF or KB) x 20' RT above GL 7. Unit or Property name C-0651590 & C061589 Deep Creek Unit 8. Well number Happy Valley #2 /' 9. Permit numbe~ 203-113 (' 10. API number / 50- 231-20014 11. Field/Pool N/A feet 2. Name of Operator Union Oil Company of California (UNOCAL) 3. Address P.O. Box 196247 Anchorage, AK 99519-6247 4. Location of well at surface 1165' FEL & 1234' FSL SEC. 22, T2S, R13W, SM At top of productive interval At effective depth At total depth 3438' FEL & 2956' FSL SEC. 22, T2S, R13W, SM 12. Present well condition summary Total depth: measured true vertical 3094' 2949' feet feet Plugs (measured) Effective depth: measured true vertical 3081' feet 2936' feet Junk (measured) Casing Structural Conductor Surface Intermediate Production Liner Perforation depth: Length Size Cemented Measured depth True vertical depth 7" Drive 82 bbl / 54.5 bbl ./ 78' 1046' 3081' 78' 1046' 2936' 78' 1046' / 3081' / 13-3/8" 9-5/8" measured None true vertical Tubing (size, grade, and measured depth) JUL ~" E~ 2003 Packers and SSSV (type and measured depth) 13. Attachements Description summary of proposal: x Detailed operations program: ~(1' :-,.." t, ~ r..,., \". ~",,-.., 11'\' L"~' 'SbÞ'sRè'tti'Ï: 14. Estimated date for commencing operation 7/25/03 16. If proposal well verbally approved: 15. Status of well classification as: Oil: Gas: x Suspended: Name :~~~ I Date approved Service: 17. I here~ ~ _ the fo .."OirJ is tr,upe and correct to the best of my knowledge. Si~;-- \ . '...,/ \A..)~arry Buster Title: Drilling Engineer FOR COMMISSION USE ONLY Conditions of approval: Notify Commission so representative may witness Plug integrity_ BOP Test_ Location clearan<?e_ Mechanical Integrity Test_ Subsequent form required 10- L{ 0 '1 Date: 7/25/2003 Approval No. 3(~~ ,~) I) Approved by order of the Commissioner Original Signed By Sarah PaNn Commissioner Date~ ?þ? \æDMS Bfl JUL 28 loQRIGINAl SUBMIT IN TRIPLICATE Form 10-403 Rev 06/15/88 ) Unocal Alaska Happy Valley #2 10-403 Description July 25, 2003 The 7" intermediate casing point as submitted and approved in the 10-401 was ,59' D/4,200' TVD. However, we were forced to pick our 7" casing point short on the Happ alley #2 well because of losses in the range of 1 bbllmin while drilling. We W~r Ie to keep up with the losses or cure them with the use of LCM. The 7" casing was a ,O§ÿ DI 2,936' TVD. ~- Re: Happy Valley #2 Request ) Subject: Re: Happy Valley #2 Request Date: Wed, 16 Ju12003 13:39:37 -0800 From: Winton Aubert <Winton_Aubert@admin.state.ak.us> Organization: AOGCC To: "Buster, Larry W" <lbuster@unocal.com> ) Larry , AOGCC hereby approves a 9-5/8" surface casing shoe FIT (fonnation integrity test) for well Happy Valley #2 (PTD 203-113) as proposed below. All other pennit stipulations apply. Winton Aubert AOGCC 793-1231 "Buster, Larry W" wrote: Winton, I would like to request the following change to the Happy Valley #2 10-401 Drilling Procedure: On the 9-5/8" surface shoe (1,045' TVD), perform a 15.0 ppq EMW formation inteqrity test as opposed to a formation leak-off test. Full cement returns were observed while cementing the 9-5/8" casing with cement to surface. We are expecting normal pore pressure to the 7" intermediate casing shoe at 4,200 - 4,400' TVD. The reason for the change request is twofold. First, we are within 100' of the Happy Valley #1 9-5/8" shoe and therefore don't want to initiate a fracture in the vicinity of the two well bores. Second, having to accurately measure a LOT as presented in the 10-401 will necessitate mobilizing a cement pumping truck, whereas we can perform a FIT with the test pump on location. We intend to perform a LOT on the intermediate 7" shoe. Thank You for your consideration herein. Regards, Larry W. Buster Drilling Engineer Unocal Alaska (907) 263-7804 - Office (907) 263-7884 - Fax (907) 351-6730 - Mob. Re: Happy Valley #2 Change Request ) ) Subject: Re: Happy Valley #2 Change Request Date: Fri, 11 Ju12003 12:24:18 -0800 From: Winton Aubert <Winton_Aubert@admin.state.ak.us> Organization: AOGCC To: "Buster, Larry W" <lbuster@unocal.com> Larry, AOGCC hereby approves proposed changes to your Happy Valley #2 drilling program (PTD 203-113) as described below. All other permit stipulations apply. Winton Aubert AOGCC 793-1231 "Buster, Larry W" wrote: Dear Winton, We are set to spud the Happy Valley #2 well this coming Monday, July 14. There are several changes to the original 10-401 application I would like to request prior to spud. First, I would like to change the intermediate casing design from a 7" 29 ppf, L-80 BTC to a 7".2fumf, L-80 Mod BTC. Also, I would like the option to run the intermediate 7" casing up to 200' TVD deeper as required for optimum shoe placement. I have attached a re-worked casing design worksheet reflecting these changes. Second, I would like to move the proposed bottom hole location 250' vertical from the original proposed location. We have already submitted a spacing exception for this well due to the proximity to Happy Valley # 1. I understand we can move the proposed bottom hole location up to 500' vertical/horizontal within the confines of the permit to drill terms, so this is a more of an notification statement. Third, I would like to request our maximum BOP test requirement be revised to 4,500 psi. The calculated MASP for this wellbore is 3,765 psi as represented in the original 10-401 application and a 4,500 psi should give us an adequate safety margin. Thank You for your consideration herein. «Modified Casing Design Happy Valley 2.xls» Larry W. Buster Drilling Engineer Unocal Alaska (907) 263-7804 - Office (907) 263-7884 - Fax (907) 351-6730 - Mob. Modified CASING DESIGN WELL: Happy Valley #2 FIELD: So. Kenai Sect. 1 MUD WT. 9.2 PPG MASP= 763 psi*"" Sect. 2 MUD WT. 9.4 PPG MASP= 3,205 psi Sect. 3 MUD WT. 9.8 PPG MASP= 3,765 psi INTERVAL CASING SIZE BOTTOM TOP LENGTH WT. 9-5/8" 1000 0 1000 47 TVD 1000 0 2 1" 4808 0 4808 26 TVD 4400 0 3 3-1/2" 10319 4700 5679 9.2 TVD 9815 4299 DATE: 10-Jul-03 DESIGN BY: Larry Buster TENSION MINIMUM COLLAPSE COLLAPSE WEIGHT TOP OF STRENGTH PRESS @ RESIST. MINIMUM DESCRIPTION WIO BF SECTION TENSION BOTTOM wlo TENSION MASP YIELD GRADE THREAD LBS LBS 1000 LBS SF TENSiON PSI* PSI SF COLL PSI*"" PSI SF BURST /. L-80 BTC MOD 47000 41000 1086 23.11 440 4750 10.80 763 6870 9.00 L-80 BTC MOD 125008 125008 604 4.83 1936 5410 2.19 3205 7240 2.26 /" /' '-- L-80 IMP-BTC 52246.8 52246.8 207 3.96 4319 10530 2.44 3765 10160 2.70 "* See attached sheet for calculation of MASP . Collapse pressure is calculated; Normal Pressure Fluid Gradient for external stress (.44 psilf!) and the casing evacuated for the internal stress (0 psilft) ~" ., I ) Unocal Alaska Union Oil Company of Cali1 909 West 9th Avenue, P.O. B \6247 Anchorage, Alaska 99519-62'. " Telephone (907) 276-7600 Fax (907) 263-7698 8-03"-/ }3 ... UNOCALe Kevin A. Tabler, Manager Land/Government Affairs June 23, 2003 Mr. Bob Crandall Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 . APPLICATION FOR SPACING EXCEPTION Happy Valley #2 well Unocal Lease # C-061588 Unocal Lease # C-061589 Unocal Lease # C-061590 Dear Mr. Crandall: Union Oil Company of California (Unocal) hereby submits this Application for Spacing Exception to drill the referenced "Happy Valley #2" well in the Deep Creek Unit. Our anticipated spud date is mid-July 2003. In accordance with 20 AAC 25.005 (a), a Permit to Drill and associated filing fees have been submitted June 17,2003. The Happy Valley #2 well is situated within the same governmental section as Happy Valley #1, requiring a spacing exception in accordance with 20 AAC 25.055 (a)(4) and if the results of the Happy Valley #1 well are successful, may be within 3000' of a well capable of producing from the same pool. This regulation provides in pertinent part, "not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool." At the date of this mailing, in accordance with 20 AAC 25.055 (d)(1), notice of our intent to drill has been sent by certified mail to all owners, landowners, and operators of all outlying properties within 3,000 feet of the Happy Valley #2 well. A copy of this application (landowner notice) along with a certified mailing receipt has been attached to this application. Additionally, ) ) . ,,' , 11 " the owner and operator (Unocal) and the landowner (Cook Inlet Region, Inc.) are the same on both sides of all property lines associated with this well. Pursuant to 20 AAC 25.055 (d)(2), enclosed is a plat, identified as Exhibit "A", which shows the location of the well for which the exception is sought and all adjoining properties. Also enclosed, Exhibit "A-I" identifies the owners, landowners and operators associated with each tract. Pursuant to 20 AAC 25.055 (d)(3), an affidavit is enclosed stating the undersigned is acquainted with the facts and verifying that all facts are true. It is requested that the Commission approve an exception to the statewide spacing regulation for the drilling of the proposed Happy Valley #2 well. If you require additional information regarding the Happy Valley #2 drill site, please contact Mr. Larry Buster, drilling engineer at 263-7804, or you may contact the undersigned at 907-263-7600. )~ Enclosures cc: CIRI ( ,~, "(" ') ') EXHIBIT "A-I" LEASE LANDOWNER OWNER OPERATOR C-061588 Cook Inlet Region, Inc. Unocal U nocal (Sections 14, 15,16) 2525 C Street, Suite 500 T2S-RI3W Anchorage, Ak 99509 Attn: Kirk McGee C-061589 Cook Inlet Region, Inc. Unocal U nocal (Section 21) 2525 C Street, Suite 500 T2S-RI3W Anchorage, Ak 99509 Attn: Kirk McGee C-061590 Cook Inlet Region, Inc. Unocal U nocal (Sections 22, 23, 27) 2525 C Street, Suite 500 T2S-RI3W Anchorage, Ak 99509 'Attn: Kirk McGee ) ) I~, '¡: ) ( VERIFICATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET, ALASKA UOC #C-061588 UOC #C.;0615 89 UOC #C-061590 Happy Valley #2 well I, KEVIN A. TABLER, Manager, Land and Government Affairs, Union Oil Company of California, do hereby verify the following: I am acquainted with the application submitted for the drilling of the Happy Valley #2 well in the Deep Creek Unit. I have reviewed the application submitted for the exception to 20 AAC 25.055 (a)(4) and all facts therein are true. I have reviewed the plat attached to said application, and it correctly portrays pertinent and required data. DA TED at Anchorage, Alaska this 23rd day of June 2003. £~le~ Mgr., Land & Govt. Affairs STATE OF ALASKA ) ) ss ) THIRD JUDICIAL DISTRICT SUBSCRIBED TO AND SWORN before me this 23rd day of June 2003. ~\,,\\"'11II111111Iü ~J. þ... S"/':. ~ ~ ~~' ......... ....,.A~~ ~~ ..~\1\\ulon ~;.~ ~ ~.:j l Ct' -,.~;;¡... ~ ;:§ --:,: j- ... ~ == i NOTARY 1 ::: :::. LT,C'- ~ __.... PUB f.L .:,..~ ~-r '0 ~ ,.'~ § ~~~1.t!~,.~.¿~-q ~,,~1/~,~\\\~\7 q~l_~ro~ ~TARY PUBLIC IN AND FOR THE STATE OF ALASKA My Commission expires: ~ - ILl- - 0 (0 ) Interval Summary t' Ul'i.....1AL Happy Valley #2 70' ·1000' MD 9 5/8" Casing 12 1/4" Hole Drilling Fluid System Gel - Gelex Key Products M-I Gel / M-I Bar / Soda Ash / Caustic Soda / Gelex / DD / Sapp / Drill XT Solids Control Flow Line Cleaners / Centrifuge / Desander / Desilter Potential Problems Hole Cleaning / Gravel/Gas Kick / Lost Circulation / Bit Balling Interval Drilling Fluid Properties Depth Mud Plastic Yield Gel API Total Interval Weight Viscosity Point Strength Fluid Loss DrilledSol- " ids (ft) (ppg) (cp.) (lb.l100ft2) (lb./100ft2) (mIl30min) (%) 500 9.4 5-10 20 - 30 1 0-14 < 20 6or·less 1000 9.4 5-10 20 - 30 1 0-14 <8 6 or less · Build spud system with pre-hydrated bentonite and Gelex in fresh water. · Utilize all solids control equipment. · Raise viscosity if gravel sections are encountered. · Pump sweeps if required. · Add DD (drilling detergent) and/or Sapp for possible bit balling. · Potential Problems: Running gravel, bit balling, shallow gas, and swelling clay · Estimated volume usage - 400 barrels. Note: Mud Weights of 10.0 ppg may be required because of potential shallow gas. M-I. LL.C. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax Interval Summary UNOCAL Happy Valley #2 1000' - 4591' MD 7" Casing 8 1/2'''' Hole Drilling Fluid System Versa- Pro Oil Mud Key Products Mapco 200 / Versawet / Versacoat / Versa HRP / VG-69 / Ver- samod / Lime / Calcium Chloride / MI Bar / Ventrol 401 Solids Control Shale Shakers / Desilter / Centrifuge Potential Problems Coal sloughing, hole cleaning, drill solids buildup Interval Drilling Fluid Properties Depth Interval (ft) 1000' -4591 ' Plastic Viscosity (cp.) 20 - 25 Yield HTHP Point Fluid Loss (lb/100ft2) (ml/30min) 12 - 16 4 - 5 cc' s Mud Weight (ppg) 9.0-9.6 o/w Ratio 80/20 Gels (lb/100ft2) 15 - 30 · Displace cement in 9 5/8" casing to oil based mud. Utilize used OBM for make up of initial system if possible. . Drill ahead, maintain low shear rate values with VG-69, Versamod, and Versa HRP. Maintain mud weight at 9.4 ppg if possible. · Run centrifuge as needed to reduce solids buildup. · Pump weighted sweeps to aid in hole cleaning. · If sloughing coal becomes a problem, add 2 - 4 ppb of Ventrol 40 I to mud system or spot a concentrated pill of20 - 25 ppb Ventro140l across coal zone prior to trips. For severe coal sloughing consider raising mud weight. · Run 7" casing. · Estimated volume usage is 800 barrels. M-I. LLC 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax , 1\' ) Interval Summary 1000' - 4t>v)' MD DESIRED PROPERTIES OF CONDITIONED MUD SYSTEM MW. 9.0-9.6 PPG (Begin interval with 9.2 ppg) PV 18-22 (Run centrifuge and add base oil- run as low as possible) YP 12-16 CHL. WHOLE MUD 45,000 mg/l (Is dependent salt % and water %) SALT 30. % wt = 247,000 ppm c1 ALKALINITY (POM) .1.0 EXCESS LIME (LB/BBL) 1.5 -2.0 % OIL 80-90 o~ WATER 8-12 % DRILLED SOLIDS Maintain as low as possible OIL RATIO 80-90 WATER RATIO 20-10 ELECTRICAL STABILITY ·1250 + HTHP 5CC @ 30 MIN& 500 PSI · Build additional Versapro system using the following formulation: 1. Mapco 200 = .82 bbl 2. IMG 400 = 8 ppb 3. Lime = 2 ppb 4. Verscoat =6 ppb 5. Versawet = 3 ppb 6. Versamod = 1 ppb 7. Versahrp = 1 ppb 8. CaC12-Water = .09 bbl 9. Barite as required M-I. LL.C. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax Interval Summary UNOCAL Happy Valley #2 4591' - 10379' MD 3 1/2" Casing 6 1/8" Hole Drilling Fluid System Versa- Pro Oil Mud Key Products Mapco 200 / Versawet 1 Versacoat 1 Versa HRP 1 VG-69 1 Ver- samod 1 Lime 1 Calcium Chloride 1 MI Bar / Ventrol40l/Ecotrol Solids Control Shale Shakers 1 Desilter 1 Centrifuge Potential Problems Coal sloughing, hole cleaning, drill solids buildup Interval Drilling Fluid Properties Depth Interval (ft) 4591-10379' Yield HTH P Point Fluid Loss (lb/100ft2) (ml/30min) 12 - 20 4 - 5 cc' s Gels (lb/100ft2) 15 - 30 Mud Weight (ppg) 9.4 - 10.4 Plastic Viscosity ( cp.) 20 - 25 OIW Ratio 80/20 · Drill out 7" casing. Maintain mud weight at 9.4 ppg ifpossible. Mud weights a.s high 10.4 ppg were encountered on NNA. · Drill ahead, maintain low shear rate values with VG-69, Versamod, and Versa HRP. · Run centrifuge as needed to reduce solids buildup. · Mud weights as high 10.4 ppg were encountered on NNA. Additional data indicates possible kick at 6200'. Consider weighting up prior to 6200'. Consult Unocal office prior to any weight Increase. · Pump weighted sweeps to aid in hole cleaning. · If sloughing coal becomes a problem, add 2 - 4 ppb ofVentro1401 to mud system or spot a concentrated pill of 20 - 25 ppb Ventrol 401 across coal zone prior to trips. For severe coal sloughing consider raising mud weight. · Run 3 1/2" casing. · Estimated volume usage is 500 barrels. M-I. L.L.G. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax ) Interval Summary jl '+J~1' -10379' MD DESIRED PROPERTIES OF CONDITIONED MUD SYSTEM MW. 9.4-10.4 PPG PV 18-28 (Run centrifuge and add base oil- run as low as possible) YP 12-16 CHL. WHOLE MUD 45,000 mg/l (Is dependent salt % and water %) SALT 30. % wt = 247,000 ppm cl ALKALINITY (POM) .1.0 EXCESS LIME (LB/BBL) 1.5 -2.0 % OIL 80-90 0/0 WATER 8-12 0/ó DRILLED SOLIDS Maintain as low as possible OIL RATIO 80-90 WATER RATIO 20-10 ELECTRICAL STABILITY 1250 + HTHP 3-4CC @ 30 MIN~ 500 PSI (Use EcotroÜ . Build additional Versapro. system using the following fonnulation: 1. Mapco 200 = .82..bbl 2. IMG 400 = 8 ppb 3. Lime = 2 ppb 4. Verscoat = 6 ppb 5. Versawet = 3 ppb 6. Versamod = 1 ppb 7. Versahrp = 1 ppb 8. Ecotrol = 4 ppb 9. CaC12-Water = .09 bbl 9. Barite as required M-I. L.L.C. 721 West First Avenue AncQ-orage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax LCM Summary UNOCAL Happy Valley #2 1000'·10379' MD 8 1/2" and 6 1/8" Hole Lost Circulation Recommended LCM Pill Formulas Problems Key Products Drilling Fluid 1 G Seal 1 SafeCarb Fine, Medium, Coarse 1 Versa- HRP Lost Circulation Pill (Slight Losses) Volume G Seal SafeCarb SafeCarb Versa HRP of Mud Fine Medium (barrels) . "(ppb) (ppb) (ppb) . (ppb) 30 10 10 10 . 1/4 Lost Circulation Pill (Moderate Losses) Volume G Seal SafeCarb SafeCarb Versa HRP of Mud Medium Coarse (barrels) " (ppb) (ppb) (ppb)' (ppb) 40 15 15 10 . 1/2 Lost Circulation Pill (Severe Losses) Volume G Seal SafeCarb SafeCarb Versa HRP of Mud Medium Coarse Polymer (barrels) (ppb) (ppb) (ppb) (ppb) 50 15 20 30 1 . Versa HRP should be added last, only after all lost circulation material has been mixed. . Ifpossible, spot pill across theft zone. Apply moderate pressure (50 - 100 psi) to squeeze pill into thief zone. M.:.I. L.L.G. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax '. ¡ ) UNubAL Happy Valley #2 ·Well Summary Casing Hole Casing Depth TVD Mud Mud Sum Cumulative , Size Size Program System Weight Days Mud Cost 9 5/8" 12 1/4" 1000' 1000' Gel/Gelex 8.8-10.0 4 $10500 7" 8 1/2" 4591 ' 4200' VersaPro 9.4-1 0.4 9 $38625 6 1/8" 3 1/2 " 10379' 9815 ' V ersaPro 9.4-10.4 19 $99875 Com- Mapco 200 pletion 22 $112250 Key Issue No.1 Cuttings Disposal . Cuttings Disposal will be an issue. Mud and cuttings should meet all disposal requirements and limitations. OBM cut- tingswill require special handling. Keep drill cuttings as dry as possible. Key Issue No.2 Dril¡'S~lids Build-up . Run as fine a mesh screens on shakers, mud cleaner, and cen- trifuge if available to reduce the build up of drill solids in the mud. Key Issue 3 Hole Stability Sloughing Coal . Maintain mud weights as per program. Increase rheology as required by hole conditions. Key Issue 4 Lost Circulation . Maintain adequate supplies ofLCM on location. Use a com- bination of G Seal and Safe Carbo These LCM products are compatible with G&I. Do not exceed 40 ppb or utilize coarse material without confirmation from MWD and Mud Motor representatives. M-I. LLC. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax {, '..'. . ..-.' ~. ~r . MIJI) IItX HOPPER ~~ IlUD IoUX HOPPER ~H? ~~r ~~ DISCW.ROE r." WAHIF'OlD . l r¡ 40 bbl flU. TNIK LEG~ -0- COOCÐmUC REDlJCER _ GATEVN-VE ~ BUTTERF1.Y V1J...VE C/W flANGES -g- SUCTION VAlVE. m TYPE -t;¿ SUCTION VAlVE. ElL TYPE .. ? -- .. I t~ / r+.~ . )t C9 ~ DESIl TER @r l@r .. ~ r~ l,jf k----, ~ £.. ~W S" ~ ºr º !" º /~7 r º r 52 r º/ f7 160 bbl BOTTOM WJ GUN lOW PRESSURE TYPE AGITATOR ~ANK EOUALIZER ,.-J ~ SKJW.IER ..- 160 bbl . 11- f'U1jIf LINE TO IIUD PIJWPS w~~ ~ .. º . r f( º S¿r .~~ / 160 bbl .. .' ili1'---"~:,. MUD SYSTEM SCHEMATIC NOT SHOWN ARE TANK ct£AH-OUTS SUI.lP SUCTION OR ST£AU TRACE UNES Total Active System = 1,135 bbls ~Not i1c1uding Trip Tank) 190 bbl CENTR1f'\JGE ~ . TO $U,p e r , º)( . ~o 0 / ~ '$' Degasser ~..- -- ..c~'~. WEll RETURNS JZ"@ IZ"@ #1"" I I v SW£ RWŒR Ìì fÎ ~-.. L~ .. ~. W~~~~¡ ~X J #r o . .. . s¿-- - 1 B5 bbI /J~ .. ~:- J:3 FROW IoWf1FOlD ~r "\ -\ 240 bbl 40bbl ~ r tRIP TANK r~ W IoIUD GAS SEPARATOR TO F1.AR£ ~ .1 1lEVla10H , If , 1fP. r tQt . HIcR DlIILLIIIG INC. ..... m.1 RIG I I @) -El Mun TANK SØfEMAl1C L ! , I ) ~~ UNOCAL8 VERTICAL SECTION VIEW Client: Unocal Well: Field: Structure: Section At: Happy Valley #2 (P3) Kenai Exploration HAPPY VALLEY 307.14 deg May 28, 2003 Schlumberger Date: 9-518" CaD PI 1000 MD 1000 rVD: 0.00' 305.61' az I o deperture i ¡ . .. /... KOP Bid 2/1JO ,·0" I "',160 MD"'iiòOTVD' / 0.00' 305.61' az / 0 departure ! I I / ... . Bid 4/100 LI § [b:... '.' ".._..........---..' 1200 MD 1200 TVD ,. _............ 2,00' 1305.61' 8Z .,,~' 2 dep,rture IindBld 1!962 MD 1919 TVD ~2.46' 305.61' az "··225·~epãrtûfè··· , i Drp 0.51100 ...._.._..... 12893 MD 2704 TVD ...-'--' i 32:46' 305.61' ez I 724 departure I j -2000 -....-..--... '"' ...,,-._.~._".~~ ".. "... ...1. 0-·..······ .....,+.. I 2000 I I ! Hold Angle 32.46° I I I - -- <D--, ~cn o~ o Q) o > 4000 _.... N 0 II .c .~ m = ~O -0 ~. . _0 c.~ <Dr- e ar 6000 -............-. ëã~ U..¡.: t Q) mC!: > > <D Q) 2m r- .".1......""...". i ¡ i I ¡ 500' Radius "j'"'' i I I I I ! ! 8000 _.. i ~old Angle 9.84° 10000 - 12000 _______''_..____''.~....,,_.__ u__._ "'.""'"'''''' ,~"."....". ".. 7" CaD PI ' 4591 MD 4200 Ti/D ., .·2.~.,.!1.~.~..,,ªº~,.4.~.,'.~...,...., 1526 departure : .....".., ". ,.",",.,..,,, End Drp 7425 Mq 6905 rVD 9.64' 3~0.31' az 2346 de~arture TD /3-112" lnr 10379 MD 9615 TVD 9,84' 310.31' 8Z 2853' departure 500' Radiµs I -2000 0 I 2000 4000 6000 Vertical Section Departure at 307.14 deg from (0.0, 0.0), (1 in = 2000 feet) PLAN VIEW Client: Unocal ~.- UNOCALe Well: Field: Structure: Scale: Date: ~ 1500"'- ^ I r- IX: o Z I r- ::> o (j) V V V -3000 , 2000 ~- 1000 500 ... o~- -3000 Happy Valley #2 (P3) Kenai Exploration HAPPY VALLEY 1 in == 500 ft 28-May-2003 -2500 I -2000 -1500 I -(-- - ~ 500' Radius -1000 I -500 I o I True North Mag Dee ( E 20.02° End 0'1' 7425 MO 0005 TVO ~~84' 310.31' az 1396 Ñ -188§W ~ Targot 6190 MO 5701 0 16.00' 308.00' 1222N 1674W I -2500 I -2000 I -1500 «< WEST ~ T' Csg Pt 4591 MO 4200 TVO 23.98' 306.45' az 893 N 1238 W 0'1' 0.5/100 2893 MO 2704 TVO 32.46' 305.81' az 422 N 589 W lyo/, ()' ~h; (.10 0'0.;- . -6'To .~-- D-...... I -1000 I -500 EAST »> Schlumberger 500 I - 2000 - 1500 - 1000 -500 End Bid 1962 MO 1919 TYO 32.46' 305.61' az ·131 N 183W Bid 4/100 1200 MO 12001VD 2.00' 305.61' ai 1N 1W . __ KOP Bid 2/100 1100 MO 1100 f,yo 0.00' 305.61' az ON OE -0 9·518" Cog PI 1000 MO 1000 TVO 00-3' 305.61' az ON 0 E I o I 500 UNOCAL8 Happy Valley #2 Proposed Well Profile - Geodetic Report Schlumbørgør Report Date: Client: Field: Structure I Slot: Well: Borehole: UWI/API#: Survey Name I Date: Tort I AHD I DDII ERD ratio: Grid Coordinate System: location latllong: location Grid NIE YfX: Grid Convergence Angle: Grid Scale Factor: May 28,2003 Unocal Kenai Exploration - ASP Zone 4 HAPPY VALLEY I Happy Valley #2 - b.I-I-lty Happy Valley #2 Feasl Happy Valley #2 50231 Happy Valley #2 (P3) / May 28. 2003 55.124 ° /2853.94 ft /5.221/ 0.291 NAD27 Alaska State Planes, Zone 04, US Feel N 59.98577255, W 151.4847541C N 2189775.038 ftUS, E 228100.433 ftUS -1.28572276° 0.99998414 Survey I DLS Computation Method: Vertical Section Azimuth: 5... U dy Vertical Section Origin: 11II- TVD Reference Datum: TVD Referencè Elevation: Sea Bed I Ground Level Elevation: Magnetic Declination: Total Field Strength: Magnetic Dip: Declination Date: Magnetic Declination Model: North Reference: Total Corr Mag North -> True North: Local Coordinates Referenced To: Minimum Curvature I Lubinski 307.140° N 0.000 ft, E 0.000 fI K8 740.0 ft relative to MSL 718.000 ft relative to MSL 20.016° 55114.626 nT 72.898° June 28, 2003 8GGM 2002 True North +20.016° Well Head "-" Station ID Grid Coordinates Geographic Coordinates MD I Incl Azim I TVD I TVDss 1 VSec I N/·S I E/-W DLS Northing I Easting Latitude I Longitude (ft) (0) (0) (ft) (ft) '. (ft) (ft) (ft) (0/100ft) (ftUS) (ftUS) 0.00 0.00 305.61 0.00 -740.00 0.00 0.00 0.00 0.00 2189775.04 228100.43 N 59.98577255 W 151.48475410 1000.00 0.00 305.61 1000.00 260.00 0.00 0.00 0.00 0.00 2189775.04 228100.43 N 59.98577255 W 151.48475410 1100.00 0.00 305.61 1100.00 360.00 0.00 0.00 0.00 0.00 2189775.04 228100.43 N 59.98577255 W 151.48475410 1200.00 2.00 305.61 1199.98 459.98 '. 1.74 1.Q2 -1.42 2.00 2189776.09 228099.04 N 59.98577534 W 151.48476185 1300.00 6.00 305.61 1299.72 559.72 8.72 5.08 -7.09 4.00 ,2189780.28 228093.46 N 59.98578644 W 151.48479281 1400.00 10.00 305.61 1398.72 658.72 22.63 13.18 -18.40 4.00 2189788.63 228082.33 N 59.98580860 W 151.48485456 1500.00 14.00 305.61 1496.52 756.52 43.41 25.28 -35.30 4.00 2189801.10 228065.71 N 59.98584170 W 151.48494683 1600.00 18.00 305.61 1592.62 852.62 70.95 41.33 -57.71 4.00 2189817.65 228043.67 N 59.98588561 W 151.4850{)~19 1700.00 22.00 305.61 1686.57 946.57 105.14 61.24 -85.51 4.00 2189838.18 228016.32 N 59.98594008 W 151.485 17 1800.00 26.00 305.61 1777.91 1037.91 145.79 84.92 -118.57 4.00 2189862.60 227983.80 N 59.98600486 W 15 5Ltvl47 ~' 1900.00 30.00 305.61 1866.19 1126.19 192.71 112.25 -156.73 4.00 2189890.77 227946.26 N 59.98607963 W151.48560982 1961.51 32.46 305.61 1918.78 1178.78 224.58 130.81 -182.65 4.00 2189909.91 227920.77 N 59.98613040 W 151.48575135 2892.69 32.46 305.61 2704.47 1964.47 724.18 421.81 -588.98 0.00 2190209.95 227521.08 N 59.98692647 W 151.48796993 2900.00 32.42 305.61 2710.64 1970.64 728.11 424.10 -592.17 0.50 2190212.31 227517.94 N 59.98693273 W 151.48798735 3000.00 31.92 305.65 2795.29 2055.29 781.34 455.12 -635.45 0.50 2190244.29 227475.37 N 59.98701759 W 151.48822367 3100.00 31.42 305.69 2880.39 2140.39 833.83 485.73 -678.10 0.50 2190275.85 227433.41 N 59.98710132 W 151.48845655 3200.00 30.93 305.73 2965.95 2225.95 885.58 515.95 -720.14 0.50 2190307.01 227392.06 N 59.98718399 W 151.48868609 3300.00 30.43 305.77 3051.96 2311.96 936.58 545.76 -761.54 0.50 2190337.74 227351.34 N 59.98726553 W 151.48891215 KBE 9-5/8" Csg pt KOP Bid 2/100 Bid 4/100 End Bid Drp 0.5/100 Happy Valley #2 (P3) report.xls Schlumberger Private Page 1 of 3 5/28/2003-2:51 PM Grid Coordinates Geographic Coordinates Station ID MD Incl Azim TVD TVDss VSec N/·S EI-W DLS Northing Easting Latitude Longitude (ft) (0) (0) (ft) (ft) (ft) (ft) (ft) (0/100ft) (ftUS) (ftUS) 3400.00 29.93 305.82 3138.41 2398.41 986.83 575.16 -802.31 0.50 2190368.05 227311.24 N 59.98734596 W 151.48913477 3500.00 29.43 305.86 3225.29 2485.29 1036.33 604.14 -842.45 0.50 2190397.92 227271.77 N 59.98742523 W 151.48935395 3600.00 28.93 305.91 3312.60 2572.60 1085.07 632.72 -881.95 0.50 2190427.38 227232.92 N 59.98750341 W 151.48956963 3700.00 28.43 305.95 3400.33 2660.33 1133.04 660.87 -920.80 0.50 2190456.39 227194.71 N 59.98758041 W 151.48978177 3800.00 27.93 306.00 3488.48 2748.48 1180.25 688.61 -959.02 0.50 2190484.98 227157.12 N 59.98765630 W 151.48999046 3900.00 27.43 306.05 3577.04 2837.04 1226.70 715.93 -996.58 0.50 2190513.14 227120.19 N 59.98773103 W 151.49019556 4000.00 26.93 306.10 3666.00 2926.00 1272.36 742.83 -1033.50 0.50 2190540.86 227083.88 N 59.98780461 W 151.49039716 4100.00 26.43 306.16 3755.35 3015.35 . 131 ~.26 769.31 -1069.77 0.50 2190568.14 227048.21 N 59.98787704 W J 51.49059521 4200.00 25.93 306.21 3845.09 3105.09 1361.37 795.35 -1105.37 0.50 2190594.98 227013.21 N 59.98794827 W 151.49078961 4300.00 25.43 306.27 3935.21 3195.21 1404.70 820.97 -1140.33 0.50 2190621.37 226978.83 N 59.98801835 W 151 J "1 4400.00 24.93 306.33 4025.71 3285.71 1447.24 846.16 -1174.62 0.50 2190647.33 226945.12 N 59.98808726 W 151.4b. "" (5 4500.00 24.43 306.39 4116.57 3376.57 1489.00 870.92 -1208.24 0.50 2190672.83 226912.06 N 59.98815499 W 151.49135133 7" Csg pt 4591.47 23.98 306.45 4200.00 3460.00 1526.49 893.19 -1238.42 0.50 2190695.77 226882.39 N 59.98821590 W 151.49151613 4600.00 23.93 306.46 4207.80 3467.80 1529.96 895.25 -1241.20 0.50 2190697.90 226879.66 N 59.98822154 W 151.49153132 4700.00 23.43 306.53 4299.38 3559.38 1570.12 919.13 -1273.50 0.50 2190722.49 226847.90 N 59.98828686 W 151.49170769 4800.00 22.93 306.60 4391.30 3651.30 1609.49 942.59 -1305.12 0.50 2190746.66 226816.81 N 59.98835103 W 151.49188036 4900.00 22.44 306.67 4483.56 3743.56 1648.06 965.60 -1336.07 0.50 2190770.36 226786.39 N 59.98841397 W 151.49204937 5000.00 21.94 306.75 4576.16 3836.16 1685.82 988.17 -1366.34 0.50 2190793.60 226756.63 N 59.98847570 W 151.49221466 5100.00 21 .44 306.83 4669.08 3929.08 1722.77 1010.30 -1395.93 0.50 2190816.39 226727.55 N 59.98853624 W 151.49237625 5200.00 20.94 306.91 4762.32 4022.32 1758.91 1031.98 -1424.85 0.50 2190838.71 226699.12 N 59.98859554 W 151.49253417 5300.00 20.44 307.00 4855.87 4115.87 1794.24 1053.22 -1453.08 0.50 2190860.58 226671.38 N 59.98865364 W 151.49268833 5400.00 19.94 307.09 4949.73 4209.73 1828.75 1074.01 -1480.63 0.50 2190881.98 226644.30 N 59.98871050 W 151.49283877 5500.00 19.44 307.18 5043.88 4303.88 1862.44 1094.35 -1507.49 0.50 2190902.92 226617.90 N 59.98876614 W 151.49298545 5600.00 18.94 307.28 5138.32 4398.32 1895.32 1114.24 -1533.66 0.50 2190923.39 226592.19 N 59.98882054 W 151.49312836 5700.00 18.44 307.39 5233.05 4493.05 1927.36 1133.67 -1559.15 0.50 2190943.39 226567.14 N 59.98887369 W 151.4~'2?R756 5800.00 17.94 307.50 5328.05 4588.05 1958.59 1152.66 -1583.93 0.50 2190962.93 226542.79 N 59.98892563 W 151.L 18 5900.00 17.45 307.62 5423.32 4683.32 1988.98 1171.18 -1608.03 0.50 2190981.98 226519.12 N 59.98897629 W 151.49"~M448 6000.00 16.95 307.74 5518.85 4778.85 2018.54 1189.26 -1631.43 0.50 2191000.58 226496.13 N 59.98902574 W 151.49366227 6100.00 16.45 307.87 5614.63 4874.63 2047.27 1206.87 -1654.13 0.50 2191018.70 226473.83 N 59.98907391 W 151.49378623 Target 6189.95 16.00 308.00 5701.00 4961.00 2072.40 1222.32 -1673.95 0.50 2191034.59 226454.36 N 59.98911617 W 151.49389447 6200.00 15.95 308.01 5710.66 4970.66 2075.17 1224.02 -1676.13 0.50 2191036.34 226452.22 N 59.98912082 W 151.49390637 6300.00 15.45 308.13 5806.93 5066.93 2102.23 1240.71 -1697.43 0.50 2191053.50 226431.30 N 59.98916647 W 151.49402269 6400.00 14.95 308.26 5903.43 5163.43 2128.44 1256.92 -1718.04 0.50 2191070.17 226411.06 N 59.98921081 W 151.49413524 6500.00 14.45 308.40 6000.15 5260.15 2153.82 1272.66 -1737.95 0.50 2191086.35 226391.51 N 59.98925386 W 151.49424397 6600.00 13.95 308.54 6097.10 5357.10 2178.35 1287.93 -1757.16 0.50 2191102.05 226372.65 N 59.98929563 W 151.49434888 Schlumberger Private Happy Valley #2 (P3) report. xis Page 2 of 3 5/28/2003-2:51 PM 5/28/2003-2:51 PM Schlumberger Private Page 3 of 3 Happy Valley #2 (P3) report. xis - Grid Coordinates Geographic Coordinates Station ID MD Inel Azim TVD TVDss VSec N/-S EI·W DlS Northing Easting latitude longitude (ft) (0) (0) (ft) (ft) (ft) (ft) (ft) (0/100ft) (ftUS) (ftUS) 6700.00 13.46 308.70 6194.25 5454.25 2202.03 1302.72 -1775.67 0.50 2191117.25 226354.47 N 59.98933608 W 151.49444996 6800.00 12.96 308.87 6291.60 5551.60 2224.87 1317.03 -1793.48 0.50 2191131.95 226336.99 N 59.98937522 W 151.49454722 6900.00 12.46 309.05 6389.15 5649.15 2246.86 1330.86 -1810.59 0.50 2191146.16 226320.19 N 59.98941305 W 151.49464066 7000.00 11.96 309.25 6486.89 5746.89 2267.99 1344.21 -1826.99 0.50 2191159.88 226304.10 N 59.98944957 W 151.49473022 7100.00 11.46 309.46 6584.81 5844.81 2288.28 1357.08 -1842.68 0.50 2191173.10 226288.70 N 59.98948477 W 151.49481591 7200.00 10.96 309.70 6682.90 5942.90 2307.71 1369.47 -1857.67 0.50 2191185.82 226273.99 N 59.98951866 W 151.49489777 7300.00 10.47 309.95 6781.16 6041.16 2326.28 1381.38 -1871.95 0.50 2191198.05 226259.98 N 59.98955123 W 151.49497575 7400.00 9.97 310.23 6879.57 6139.57 2344.00 1392.81 -1885.52 0.50 2191209.78 226246.67 N 59.98958250 W 151.49504986 End Drp 7425.34 9.84 310.31 6904.54 6164.54 2348.35 1395.63 -1888.85 0.50 2191212.67 226243.41 N 59.98959021 W 151.495mm05 TD I 3-1/2" Lnr 10379.30 9.84 310.31 9815.00 9075.00 ". 2&52.58 1722.34 -2273,94 0.00 2191547.92 225865.75 N 59.99048377 W 151.4P'" '4 '~ " ~~!Æ~! :} ~~!Æ~'~~!Æ .I~.SKA. OIL AND. GAS CONSERVATION COMMISSION Larry Buster Drilling Engineer Unocal PO Box 196247 Anchorage AK 99519 ) FRANK H. MURKOWSKI, GOVERNOR 333 W. 7fH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Happy Valley #2 Unocal Permit No: 203-113 Surface Location: 1165' FEL, 1234' FSL, Sec. 22, T2S, R13W, SM Bottomhole Location: 3438' FEL, 2956' FSL, Sec. 22,T2S, R13W, SM Dear Mr. Buster: Enclosed is the approved application for permit ,to drill the above referenced development well. This permit to drill does not exempt you from qbtaining 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. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. Unocal assumes the liability of any protest to the spacing exception that may occur. 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, ~-'7 ~,£~ Randy Ruedrich Commissioner BY ORDER <?VHE COMMISSION DATED this~day of June, 2003 cc: Department ofFish & Game, Habitat Section wlo encI. Department of Environmental Conservation wlo encI. Exploration, Production and Refineries Section STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RECEI\/ED PERMIT TO DRILL JUN 2 0 2003 1 a. Type of Work Drill X Rentry 0 20 MC 25.005 . . Redrill 0 1b. Current Well Class: Exploratory X DevelopmeAtl~~ Oil ~ffiÞl~~6~'ef1<mn1~I$~Wn Statigraphic 0 Service 0 Development Gas 0 Amdw~@ 0 Bond X Blanket 0 Single Well 0 11. Well Name and Number Bond No.: U 62-9269 ($200,000) Happy Valley #2 6. Proposed Depth: 12. Field/Pool(s): MD: 10,379' TVD: 9,815' Deleniation Well in Beluga and 7. Property Designation: Tyonek Gas Sands C-061590 & C061589 8. Land Use Permit: 5. 2. Operator Name: I Union Oil Company of California dba Unocal '3. Address: PO Box 196247, Anchorage, AK 99519 4a. Location of Well (Governmental Section): Surface: 1165' FEL, 1234' FSL Sec 22-T2S-R13W SM Top of Productive Horizon: N/A 13. Approximate Spud Date: 14-Jul-03 14. Distance to Nearest Property: 1766' 15. Distance to Nearest Well wlin Pool: 70' (Happy Valley #1) Surface: x- 228100.433 16. Deviated Wells: 9. Acres in Property: 2,524.44 10. KB Elevation 739' KB to MSL Y- 2189775.038, Zone - 4 (height above GL): 22 feet 17. Anticipated Pressure (see 20 MC 25.035) Total Depth: 3438' FEL, 2956' FSL Sec 22-T2S-R13W SM 4b. Location of Well (State Base Plane Coordinates): 7" Top Bottóm Weight Grade Coupling Length MD TVD MD TVD 68# K-55 Weld 40-80' 0 0 40-80' 40-80' 47# L-80 BTC 1,000' 0 0 1,000' 1,000' 29# L-80 BTC 4590' 0 0 'f5'" ~ 4,200' 9.2# L-80 IMP-BTC 5,979' 4,400' 4,026' 10,379' 9,815' PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Specifications 32.5 deg. Max. Downhole Pressure: 4,746 psig. Setting Depth Max. Surf Press: 3,765 psig. Quantity of Cement c.f. or sacks. (Inc!uding Stage Data) Drive 256 SX 291 SX 328 SX Kickoff Depth: 18. Casing Program: Size Hole 1100 ft. Max Hole Angle: 12-1/4" 8-1/2" 6-1/8" Casing 13-3/8" 9-518" 3-1/2" 19. Total Depth MD (ft): Junk (measured): Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Length Size Cement Volume MD TVD Perforation Depth TVD (ft): Filing Fee X BOP Sketch X Property Plat X Diverter Sketch X 21. Verbal Approval: Comission Representative: 17. I hearby certify that <;;ing¿e to the b·'st of my knowledge. Printed Name:~' '<"- Signature" t f ~ Cement/Casing Program X Drilling Program X Date: Contact: Title: Drilling Engineer Shallow Hazard Analysis X 20 ACC 25.050 Reqs 0 20. Attachments Phone: FOR COMMISSION USE ONLY Permit to drill IAPI Number.: Permit APproJar __I number:..2.0.5 - //_? 50- 23 / - 2- 0 0 I ~ date: Cs, ~V ~ Conditions of approval: Samples required )ð Yes 0 No Mud log require Hydrogen sulfide measures 0 Yes )ïrNo Directional survey required (907) 263-7804 Date: 6/17/03 See cover letter for other requirements. ;sf Yes 0 No ::8f Yes 0 No Other: T ~ s 1:- 'g 0 P E to S" DO 0 P s· ¡ . r e~V r¿D AM ~S, O"š S (tv) L z- ),1 l 2- Ìi ~'" e~/t-é~/ Approved by: ~ ì?~~ Form 10-401 Revised 3/2003 v ·eJY1.,t {; h-e' i' S a..p P f"'7 v: e J 0 BY ORDER OF THE Commission COMISSIOI\ Date tV2J/<>3 Submit in duplicate " 1 . ') Unocal Corporation P.O. Box 196247 Anchorage, AK 99501 Telephone (907) 263~ 7660 ') UNOCALe Larry Buster Drilling Engineer Tuesday, J~.me 17, 2003 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 Attn: Commission Chair Sarah Palin Re: Application for Permit to Drill (Form 10-401) Happy Valley #2 Dear Commissioner Palin, Attached for your approval is an application for permit to drill (Form 10-401) for the Happy Valley #2 Well. Unocal proposes to utilize a 12" diverter line while drilling the 12-1/4" surface hole. This is the same technique proposed and approved for the Happy Valley #1 WelL Also, the proposed logging program consists of an MWD/GR to the 7" casing point at 4,590' and then an LWD Quad Combo to 6-1/8" TDat 10,379'. The anticipated start date for this well work is July 14, 2003. If you have any questions please contact Mr. Phil Krueger at 263-7628 or myself at 263-7804. )7~ \ i l' ~~ Larry Buster Drilling Engineer LWBls Enclosure INOUIFiIEt: CDt-fí.'\CT L.OU\TION WH[JiE INVOIC[:::, 'AIfTI[ ~;UBMITTED VENDOR:NO. 1:031548 06-16-03 2006852 DATE INV0ICElCREDrfMEMONO.···· VOUCHERNO: GROSS DISCOUNT NET ,-10-03 DRILLPERMITHV2 10010102 100:00'~ 100.00 ~ 4-28181 (REV. 11-95) PRINTED IN U.S.A. ,CH STUB BEFORE DEPOSITiNG CHECI( I TOTAL .... 100.00 100.00 BANK DELAWARE Jbsidiary of Citicorp : PENN'S WAY V CASTLE, DE 19720 62-20 311 Union Oil Company Qf California Accounts Payable Field Disbursing 2006852 UNO'CAL(if One Hundred Dollars And~OO Cents ******************************************* Date 16-JUN"-03 Check Amount ' *******100.00 Ie STATE OF ALASKA r ALASKA OIL & GAS CONSERVATTON COMMISSION 333 WEST 7TH AVENUE SUITE 100 ANCHORAGE~ AK 99501 United States Void after six months from above date. /=> I~ D.A. PAGE JUN 1 6 2003 III 200 bB 5 2111 -:O:ì. .00 20 g-: :ì g . . B . 3 ? III ~ , " UNOCAL6 ) Happy Vallr ')Well #2 General Dn'l.ng Procedure 1 Drive 13-3/8" Conductor & Prep. Location. 2 RID Nabors Rig 129. N/U Diverter & Function Test. 3 Drill 12-1/4" hole to +1- 1,000' wi MWD. 4 Condition & POOH. 5 Run 9-5/8" casing to 1,000'. 6 Cement 9-5/8"casing. 7 N/D diverter,N/U Well Head & BOPE. 8 TEST BOPE and Casing. 9 PU Drill Pipe & BRA. Displace to OBM. 10 Drill Out and perfonn LOT. 11 Drill 8-1/2" Hole to +/- 4,590' wi MWD/GR 12 Condition and POOH. .' 13 RID and run 7" casing to.4,590'. 14 Cement 7" casing. 15 M/U BRA and prep to drill 6-1/8" Hole. Test Casing. 16 Drill 6-1/8" Hole to TD at 10,379' wi MWD-LWD. 17 Condition and POOH. . 18 Install and Test Rams for 3-1/2" Tubing. 19 RID and run 3-1/2" liner to 10,379'. 20 Set hanger at +1- 4,400'. 21 Cement 3-1/2" liner, set liner top packer and test. 22 Tie-back 3-1/2" liner to surface. 23 N/D BOPE and N/U and test Tree. 24 RiD and Move Rig. 25 Perform Production Testing. General Procedure Happy Valley #2 6/17/2003 ~ ConsuLting L;"roup OFFSETS 1165' FEL SECTION 22 fv1cLane T esHng 1234' FSL T2S R13W SM AK Dwg" I TEL. 907.283.4218 FAX 907.283.3265 03300Lhv#2_s1d Date: OS/27/03 "'"'''''' .......... t"': OF ÂI.. t f _- ~'C;-..".....,.,~{\ I' - ^,~." *'~...(... I -0' </- I :: * ,'.'49 ill "?,"* ~ g::::::::::,,:::::::::::::::::::::::~ ; ~ ',STAN A. MclANE;: :: I' ~ ". " - I ~" <4637-$ ." - I 1b ". ,,- I f ID."~~~I'~~~' \.~~ .....-- 'h\,,,''-' SECTION 22 TOWNSHIP 2 SOUTH RANGE 13 WEST SËWARD MERIDIAN ALASKA SC ALE 1 inch :::: 300 ft ~~ HAPPY VALLEY NO.2 SURFACE LOCATION P.O. Box 468 SOLDOTNA, AK 99669 t ~ OIL~XISTJNG ELL ROAD o,~ ~o /&1)1'\1, Q Gh ff ~« !:j tJ () ~ 1165' PROPOSED WELL HAPPY VALLEY NO.2 SURFACE LOCATION . qROUND ELEVATION 716.5 FT. GRID N:21B9775.038 GRID E:22B100.433 LATITUDE: 59°59'08.781" N LONGITUDE: 151 °29'05.115" W 1234' NOTES 1) BASIS OF COORDINATES: NGS CORS STATION "KEN 1" NAD27. 2) BASIS OF ElEVATION: NGS BM W75 NAVDBB. 3) SECTION LINE OFFSETS DERIVED FROM TIES TO BlM MONUMENTS AT SW CORNER SECTION 10 AND SE CORNER SECTION 12 T28 R13W SM FOUND THIS SURVEY .. 822 823 827 826 GRID APpLICANT: UNDE:AL 909 W. 9lh Avenue G Anchorage, AK 99519-7685 FIGURE: 1 II ) ') Happy Valley #2 BOP Stack Diagram Underside of Rotary Table 172" 19.5" ... .. ... .. ... 33" .. from kill line.. ... 24" ... --=. ~ Ground Level .. ... 55" .. ... =e 7" outlet 3S" "r- ... 11IIII 1iiiI_ . .9 SIS" outlet .. ... c:: ::J __ 13 31S" outlet 46" 11" SM studded Cameron MBS wellhead II 120" 24.5" 41.5" Rig Mat .. m ... 96" .. þ ~ cc- ____ Manifold consists of 3 1/8" 5m flanged valves & one 5m super choke. ¡----... JIn~n..,,_.... " AlMan.... ~==': u .--..... =:.:r- --- I ~,~ I I r--:t.....,.. R1G '29 CHOIŒ IWIRXD I.. .. I. _. _ _,'. !tit RfI1) - -- m JlZ1M - - ---~-I ~oP~ o . - 0 I .....J_ ~ <I> ~ 0 - - PANIC UNf :. I) ..... ~ INLET C==~JJ ~ BY-PASS UNf .¡:::. I -I ~m-. - . . ?> ~ TO GAS BUSÆR h ~ ~""--' ~ ' Jt\ It: ~\ ~ 1ft n II r\. -J ~ ~ ~ ~ i~ I ... 0 :: ~:: ·~I ,1\ II ~ r P'~{ ."W' ') > ') ,. -JOOOPS ì,~ /_w~ _._.~ I HYDRIL GK 1 ¡-- _ :o~~u'!!!!!. 1135/8- ~ 5000PSI - .. . ~~ A FROI.t ACCUIIUIJ.TOR I ANNULARr' :-..- .,-..- I / ~I ¡;;..-1 I-_·_·~A ¡ ____\ = r:. . . --3 V ~~~ WGrs -r-~^= iL\¡ I I II FABRI-VALVE 12- FIG. 36 KNIFE VALVE /\ ~ 1rïKm ~ ---- '\:~ r-::::J. ......... =:~'=r:t~F~~~~OF 8 NtIboI.AL-I- Nabcn Hc.ka DrIIIIn9 1m:. I'S ~ 2S25 C Street Sutt. 200 .....--c.. Anc:hora9a. AIaaka 99503-2539 907-263-6000 RIG 129 PRG£CI' 1ITl£ DIV£RTER RIG· 129 DMWI IJ\" CHECKED BY 1011 REED APfIRattD BY REV. SCAl£ !WE J/28I03 IÇ" NO. sm. 1 OF 1 DATE: i 17 lan, O~ Mr. Tom Mau""l P.E. Senior Petroleum Engineer State of Alaska Oil & Gas Conservation Commission Tom Maunder@a.dmin.state.ak.us ) , \ TO: FROM: Jim Mosley Ad vising Drilling Engineer Unocal MosleyJ @U¡lOcal.com SUBJECT: Annular Disposal of Drilling Waste Request for NNA # 1 Tom, Unocal would like to amend the cement program and the pernùt to drill to allow for annular disposal of dríl1ing fluids and cuttings .on the NNA #1 well. The reasons for this amendment are as follows: 1. We anticipated encountering gas pay in the interval below the surface casing. We did not see any gas in the well for several thousand feet below the surface casing depth of 2150'. B asedon this we will not cement the 7" casing to the shoe of the 9-5/8" casing. We intend to bring cementto about 4000' covering all of the gas shows. J L ~ . 9-5/8" AT 2150' Planned Top of Cement 4000' " ¿l ~ Planned 7" AT 9900' Proposed 4.5" Liner at 11200' ,,¿, ~ 2. Anticipated top of cement will be around 4000 feet and leave the interval from 2150' to 4000' available for annular disposal. 3. The surface casing was cemented with full returns to the surface. After drilling out the cement the following describes the leak off tests. Leak. off testing on the 9-5/8" Shoe was done along with a Page 1 of7 03/07/02 AOGC LTR 17 IAN.doc squeeze job on the::.. ,è. The first leak off test resulted in breakdowI! 460 psi back to 200 psi. We pumped into th 11 with 200 psi. The after squeeze leak off te, ~ssures were essentially the same as before the squeeze. The conclusion was that the formatiOIls below the shoe were weak and broke down during the fIrst leak off test and repeated their breakdown at the same pressure I..Y~~.~~.~. .....~.~.~P.... t~.~..!!!..e.!:.g ....~E~.~~.~!:.. (BBLS) (psi) 0.12 25 0.24 100 0.36 200 0.48 300 0.60 400 0.72 500 0.84 525 ~\S\ldum 9XI--~-.~._-- -_________.~__...__..._._._.._..___.____.____..____.___..__--.....--...-......._......................_..........,. 9:1) ---" /---- // //-' // ,,// // ~ 4100 "'" .; ;:m. i n. :!IX) 100 0.10 I o.g:¡ 0.70 o.ro (3) ~fÐ-e.)oro 0.00 0.00 after the squeeze job. The mud weight during the test was 9.5 ppg. The leak off shown above calclÙates to 14.0 ppg equivalent. The graph of the leak off test is above: 4. UNOCAL does not have a disposal well available for cuttings disposal on the Kenai Peninsula and would like to use the annulus of the NNA # 1 well for to dispose Ç>f cuttings. Because of the lack of a disposal well, Unocal will also request that cuttings from the next three wells be allowed to be hauled to the NNA reserve pit for disposal into this annulus. 5. After the NNA well is completed, the rig will move to and drill the Pearl # I well, the Griner # 1 well, and an additional Anchor Point well currently designated as the "J PAD". These additional wells are expected to be drilled with OilBase IDud through the productive intervals. The top hole sections will be drilled with water base muds. . · We propose to temporarily store the water base IDud and cuttings from these water base mud intervals in the reserve pit on the NNA location where they will be disposed of via annular disposal into the 7" production by 9-5/8" surface casing annulus. Benefits of this plan include not using a reserve pit on the Pearl, Griner or J Pad locations. · UNOCAL proposes to dispose of all of the waste liquids in the NNA annulus. · UNOCAL proposes to dispose of the cuttings that are slurrified into this same annulus. · The cuttings that are not slurrified because they are too big will be kept in the reserve pit and disposed of in the NNA annulus after a grinding plan is finalized. · Our intent is to temporarily transport and store the Oilbase cuttings in safeguard tanks until the grinding and injection plan is formalized. · In all likelihood, the oilbase mud cuttings will be stored on location either at the NNA or at the site they are generated. There is a possibility that we will store the·oilbase cuttings at our EFDF facility until the grinding and injection plan is formalized. 6. Fresh water salinities have been determined for the Deep Creek Unit number one well immediately offset to the NNA location. The salinity data for Deep Creek Unit # 1 well has been submitted to Steve Davies with the permit to drill. The salinities below the surface casing shoe depth in the offset well are in excess of the 3000 ppm requirement. Data has been gathered on the NNA well via surface hole logging and via logging of the intervals below the surface casing on the NNA. Resistivity/gammaldensity/neutron data are available on the NNA from surface to TD. Page 2 of7 03/07/02 AOGC LTR 17 JAN.doc I Pursuant to 20AAC25.080 AU.Ll"1 '1,r Disposal of Drilling Waste (a) An application for Sundry:froval (Form 10403) is attached. with the addW 1 information . requested under this section.' (b) List of information included with this request (1) The annulus to be used for disposal is the 7" by 9-5/8" annulus. 9-5/8" casing is set to 2150' :MDtTVD. 7" Casing will be set to 9900' MDITVD with the planned top of cement behind the 7" at 4000'. (2) The depth of Fresh water as defined by 3000 ppm chlorides is about 1000Jeet. A copy of the data submitted with the Permit to drill is enclosed. (3) The surface casing shoe is set in the base of the Sterling formation. The sandy intervals below the shoe of the 9-5/8" casing are the lower sterling sand or two and the upper few Beluga sands. A marked copy of the log depicting the target disposal interval in the offset well is enclosed. The 9-5/8" Leak off test data from the NNA #1 well is also enclosed. The top of Beluga is 2442' MD in the Deep Creek Unit # 1 Well, and correlates to be 2533' in the NNA # 1 Well. The two wells are directly correlative throughout these intervals. The NNA # 1 is 51' low to the Deep Creek Unit # 1 Well at the top of Beluga and the difference is due to structure. (4) There are no publicly recorded wells within a quarter mile of the location. The only publicly recorded water well within 1 mile is the water well on location that was drilled to support the operation on the NNA # 1 location. This water well was completed deeper than household water wells so that it would not drain any future public use water wells that may be drilled in the area. (5) The drilling wastes to be disposed of will consist of the fluids and cuttings from drilling of the NNA Well Number 1, the fluids and cuttings from drilling the Pearl # 1, and the fluids and cuttings from drilling the Griner # 1 followed by the cuttings and fluids generated at the "J PAD". The waste slurry will' be comprised of drilling fluids and cuttings with a maximum. slurry weight of about 10.5 P~G. The volumes of waste are estimate~ to be as follows: For the NNA # 1 well, about 3000 bbls of slurrified cuttings and an additional 7000 bbts of waste fluids. For the Pearl # 1 the estimate of wastes are some 2500 bbls of slurrified cuttings and an additional 6000 bbls of waste fluids. For the Griner # I well the estimate of wastes are 'some 2500 bbls of slurrified cuttings and an additional 6000 bbls of waste fluids. For the "J PAD" # 1 weJ¡ the estimate of wastes are some 2500 bbls of slurrified cuttings and an additional 6000 bbls of waste fluids. .,' The total of these four wells will be about 10000 bbls of slurrified cuttings and 25000 bbls of waste fluids. The standard annular disposal maximum of 35000 bbls of waste may be sufficient for these wells, however any snow fall or rainfall that collects in the pit will also be stored and disposed of in the annulus. If precipitation for the time frame is excessive, then the estimate of 35,000 bbls will,go up accordingly. The waste fluids will be comprised of slurrifled cuttings, drilling mud wastes, completion fluid wastes, wash water, etc. (6) Drilling waste for this location will consist only of the slurrified drilling cuttings, waste drilling and completion fluids, wash fluids, precipitation, and any excess or contaminated cement that has been stored in the reserve pit. (7) The leak off test for the 9-5/8" Casing was repeated with break down occurring at about 460 psi with a 9.5 ppg mud. The shoe strength is (9.5)(.052)(2150)+500=1062+500=1562psi. This calculates as 1562/.052/2150=13.97 ppg Equivalent shoe strength. (8) There is no perma frost in the South Kenai area and the disposal zone lithology is as follows. The target salinities are attached below the lithology based on DenlNeu and on SP for the offset well. As of the writing of this request, the log data from the NNA #1 well has not been processed. Page 3 of7 03/07/02 AOGCLTR 17 JAN.doc UnocaJ NNA #1 - Proposed Annular Injection Int"'vaJ IJthology- Interval 2140' - ~ SO'MD in Lower Sterling For tion '-t ~ _···__·;;t~",,"...,--_·t1r~---~~i::.ttt·u.............._--- -- ~;:!: ~m~;-:~~~~~k~!~::==:~·__:.: r~ ~it1:..l~-F0RI\r~~ ~l\1 r~d;',' . -~~:~~ = ('!£~ ;. , 'l ~ ~ \ j~_--=J. Í¡ .':1:...' t -~ v (>~. .~ --c:~~~~?:-::.~-- ~"". ;')..., ..... ,.~' ~... -... ;~~~ ....,.) ~I "<-~ '\ :... 2140' to 2185' WD: Rnirg ~ sequerœof silty sardstone grcding to silty day; Cœ./ at 21 00 to 2185' rvD; Ab significant gas shotNs 2185' to 2265' WD: Rnirg ~ sequerœ of conglorreratic sardstore grading to sard ard si~stone; CœI at 2255' to 2265' tv{) ::0:1 1~" ;" -~ ...l -=-:~. ....--" ~... "~""""4V '!'.;~ ./0 .-c .¡6' ). ~ ~ }~ \ ~~~ { 2265' to 233)' WD: Rnirg ~ sequerœ of conglorærate sard grcding to silty sam; Ab sigJificant gas shovvs ~~~ ~r l' J"' ~.., r:=____:. ~~ " .~. \ c, I ~ "r' ._::::"~ -.~~ ;.!.;. " "-""~ ~~ " ~ -..~(~~ ~....- ...' ...·7 ~..... ....~I )-£.. ' - ~.. .~--¡ :i~~' 0 -(-.......; ~ -. - ~ ~ ~~-' .~ , ~~f ( 2æ/J' to 2415' WD: Interbed:ia:l thin sandstone, si~stone ard silty day; No SI'gJificant gas shows 2415' to 2400' WD: Rnirg ~ sequerœ of silty. sardstone ard occasiorally conglorreral:ic sardstone gadirg to silty day; I::asaI sardstone ct Sterling Fomation; No significant gas shows Page 4 of7 03/07/02 AOGC LTR 17 lAN.doc ~ I '\ OFFSET WELL DATA Fb' ·...·)DEEP CREEK UNIT # 1 ) DeepCreek Salinity Calculations . Calculations Method #1 - SP Use Ami-0.G1 Am Form. Depth Gee. Hdr Chart -Looation Well TO:) SP R16 R64 Grad K Rm Rm1 Rwe Salinity ppm Ohl LOG HEADER: 80.00 6.00 16·2S-13W Deep Ok 1 Sterlinp 123 22 175 270 0.0066 75.88 62.447 4.84 2.97 1.456 4000 16·2S-13W Deep Ok 1 Sterllnp 580 18 80 110 0.0086 78.88 62.797 4.67 2.95 1.664 3000 16·2S-13W Deep Ok 1 Sterling 600 15 70 80 0.0066 78.99 62.812 4.67 2.95 1.822 2800 '1S·2S-13W Deep Ok 1 Sterlinp 825 22 44 42 0.0066 80.46 62.984 4.59 2.95 1.453 3800 1S-2S-13W Deep Ok 1 Sterlinp 1120 22 28 36 0.0066 82.40 63.21 4.49 2.94 1.452 3900 1S"2S-13W Deep Ok 1 Sterling 1480 30 18 19 0.0066 84.76 63.485 4.37 2.92 1.125 4600 J5-2S-13W Deep Ok 1 Sterling .1700 30 17 15 0.0086 86.20 63.654 4.30 2.92 1.125 4600 15·2S-13W Deep Ok 1 Sterling 2220 30 12 12 0.0066 89.61 64.052 4.15 2.90 1.125 4300 15·2S·13W Deep Ok 1 Beluga 2550 52 22 17 0.0066 91.78 64.304 4.06 2.89 0.563 8000 ·16·2S-13W Deep Ok 1 Bel.up8 2810 45 29 19 0.0066 93.48 64.503 3.99 2.88 0.703 6500 15·2S-13W Deep Ok 1 TD 12963 0.0066 160.00 72.263 2.40 2.6 Deep Creek Salinity Calculations Method #2 Rwa Iuse Rrrd",O.'=s'Hm F ürrTl uep1't, P']1'OSlTj/ Gee HOr FI_ Me\húa It~ It.Dashon VV811 Top MD S~ I;l8r, '11 (;¡.rat! ~ flirt, Hm1 r.llett1CLI II:? bltlln~, ~rt, Qt, ¡LOG H~DEH BCouú ~.OO . I 1&·2S· 13W üeEl~ c.~ 1 S1ell"'9 '~:J ~2 C/ 3~ ;!70 C/ 0066 75 t\6 7 77~f.J €..? 4~ 1.12 ~ &7 :1d. 7.2 lIeE.r'V\I¡,'e' 11~1·2S·13W úeep C~ , 51erllr,g '580 1B U.J;! 1 1(.' ú .(¡(¡fIt. 7f1toG 7.77'5:. t:::-8'J 1.12 ¿'.&'5 1d 1'5 11 £'1'3 r,,,,,.. 11:' íIS.2S.13Vv üeep c.~ 1 S1erllflg earJ 15 C/3 ~/:O ('.0066 7& I}f tI n~J £2.81 1 CIS 2.9'5 Eo 11:, ~,) '1f,·2S·13W üeep C~ 1 ::,1erllr'il Eo,'!'5 22 ü.2E1 42 o OOF..£ I;t(, 4t: & MB:? E:: 9E1 'J.&fI 2.EtS 4.;)'5 , .!(I':. ~1:·;?5·13Vv úeElp c.~ , ::'ler1tr,g 11;!( 22 Ü 15 :;6 rJ.OO66 B~ 010 ~( 01" t:=J ~ 1 U j4 :. ¡¡.I 1 1B ~./II)(I 1~·2':'· ,~VV úee~ C~ 1 Sterhr,~ IJEsü :J1j (I 1€, 1& ü 0CI66 tl47F.. 21 ¡¡03 £..j 4& ú '::7 :: 9:1 uEo7 ~~I:II~' i1e,.:!S.13W úee~, C~ 1 S1erllnq 17OC, 30 (1.2 16 I) OOBõ tlE..~( 1Es 11& t::j £5 IJ ES :!.&2 ú.83 i,(I{I,:, ! 15·2';· 1 3W üeep Ck , S1erhng 222(' ~O Cl2~ 1;! C/ ()I'J.x. 8'=' 61 1 5.2£~ ß4 0'5 C/.74 2 &0 (,7& t, 1(11:,1 115·2S·13W Deep c.~ 1 Ele1uQ" ~55(' '52 u1') 17 (,.(¡o)6!3 "'17~ 30d11 &4.30 (,44 .?B& (¡ 56 ~I:I((I 11,:>·:?S·13W üeep c.~ 1 Elel up" 2&10 .IS 'J 13 1& (, arJõ6 9~ 4£1 ~& :146 64.'50 u.~ ~ tlB t,oIl;1 ':f.(":' I 1[:' 12&5:' ~, (¡(·56 16t' (¡(¡ 7:'.2& :;.~Q ~.b Deep Creek UnJt' #1 Salinity Calculations 1 0000 -.:~~Y:~'~~-'~'~^W^~__~~~r-"~"~~:~'~;~~'__~r~:.~~.~:.~:~·::~~'~·:~·-'~;:·--·'-7:~~·:;-~~~i~'~:::... .'~':.~'~"~::~.: ..-' : 9000 71· SALINITY [I AT A USING RWA METHOD l' ;';:"~¡.!; " ',!.:'.;.~: i,:.! . ~.:,:! ". <~};+.."..~I,; ~'... .;.....¡; \i;,~~"'·"·i...; , .~,,·t; '.~' .,,: c;. 5000 . ,~ . . . .. -4 '.' . "no' :+. .... .. ^, ^'~^ . . ;, : ; I ::: .[:Ij::,:.¡::~>?~t1'·i:,?~~;"!:'i'::?:i,,:~:~t?:~j::::~.~[1:1 ':' ~~~~t;~:,~,','?t:'·.·: 1 000 ~::~': ~ ,.... J,..~';" ··\4?~0/:),:;,~:;'::,;:·:,:·';:·:;,,/:::·~,·: :!. ::'-:;,/};':;:3 . ;,,:;;, :;~.::.'L.C:·,.~'·:~ .,;".. o . o .~ ,....:':. ..... ... .. 500 1000 1500 2000 2500 3000 Depth Feet Page 5 of7 03/07/02 AOGC L TR 17 JAN .doc OFFSET DATA DEEP CRE ~. _...... ............ .......... ......"....................._.......... ............ 0.0......................................................................................... _.................... .,. ...................................... ...... ... ............." L.............!.~~L....:......~9..~9..L.. :,.:' t.... .'....... ..~~9.~........ .'. ..~9..~~.L. :... .'......... .?~9.I........... ~~9.?.L. t..... .'........ ..~??¡.......... ..~~9.?.L " L.....................~...~..?.9..L....................~.~99..L... [......... ...!.~~q.L....... ...~?q9.¡... L '"....... ..!.?.~q.L......... .~~q.~!... ¡.......... .~?~.qL... '"... ..~q9. L. ¡...........~~?qL........ß9.q~.I... j 28101 6500j E:~~~~F}~~~F ¡.......... ..~~q}... ...... .!.?9.q9. [... !.......... ..~~.~~.t........ .!.~.?9..? L. :.......... ..~~~?.t........ .!.~9.q9. L. ¡.......... ..~~~~L...... ..1.?9.~9.L. L.....................~.??~..L...............,~.?9P9..L.'. L................~..9.?~~.L.................}.?9.9.9.L... L................~..9.~??.L..........,.....}.?.9P9..L... t........ .!.~. .~? L....... .~. ?g9.qL ..'............. .....:................... ..;:. ,"' ................. ..:..... ...... .......... L.... ............. ...:,..................... ".......... ....."". ....:.""................... UNIT # 1 SP METHOD Water Salinity at Deep Creek Unit#1 14000 -~-~~._.._..__.._~-_..~-~_.._---_.~_.._--~-,.....,...~¡ .r::; 12000 .... ... ¡ ~ 10000 ¡ ~8000 ~ i ~ 6000· ¡ ~ 4000 l m ¡ en 2000 ¡ ! o ; o 2000 10000 12000 4000 6000 Depth 8000 The leak off test on the 9-5/8" Casing shoe is discussed above and the job was pumped with full returns to the surface. Approximately 60 bbls of cement was circulated to the surface during the cement job. The 9- 5/8" casing was cemented with 193 bbls of cement. The top of cement on the 9-5/8" casing is at ~e surface. (9) Anticipated disposal operations will limit pressures to less than 2000 psi on the formation below the shoe. This is slightly more than the fracture gradient observed during leak off testing and will insure that there is a little room for error during pumping operations. The anticipated pump in pressures will be equivalent to or slightly less than the observed leak off. The 9-5/8" casing which will have an internal pressure applied during disposal operations has å'burst rating of 6820 psi and a collapse rating of 4750 psi. The 7" string of casing haS a burst rating of 8160 psi and a collapse rating of 7020 psi. Both of the casing strings have a·, substantially higher ratings than any of the anticipated disposal pressures. (10) The downhole pressure obtained during leak off testing is calculated in (7) above and is 1562 psi. (11) There will be no hydrocarbon bearing intervals in the disposal annulus above the top of cement. AU potential Hydrocarbon zones have been identified during the course of logging and drilling.. These zones are all below 4800'. Identification of zones has been conducted using the electric logs, the mud log, and the LWD logs. The upper most zone with a slight hydrocarbon potential is located in the Beluga formations @ about 5000'. The main intervals with hydrocarbon indicators are all in the Tyonek beginning at about 6200'. The top of the cement on the inner string of 7" casing will be at about 4000'. Cement covers all of the potentially hydrocarbon bearing strata. (12) The disposal operations for th~ NNA will begin shortly after the rig is demobilized off of the pad to begin the Pearl well. The Pearl well is anticipated to require some 40 or so days to drill and case. The following wells, the Griner and the as yet unnamed "J PAD" are both 30 day wells. The intent is to use this annulus to dispose of cuttings from the drilling of the NNA# 1 well, the Pearl # 1 well, the Griner # 1 well, and the "J Pad" # 1 well. The amount of time from start of Pearl to end of drilling on the J PAD will be about 100 days. Disposal operations may need to be conducted intermittently if free board on the pit becomes an issue. Disposal operations will be conducted in a continuous manner after the drilling of these wells and should be finished a month or so after the "J Pad" well drilling and completion operations are finished. The intent would be to close the pit at the end of disposal of all the accumulated cuttings. Because of the winter time freeze ups and because of the potential for intermittent Page 6 of7 03/07/02 AOGC L TR 17 JAN .doc · ' timing of the dl"r'r~~l operation, it is planned, to conduct final dh}'ùsal of cuttings and clo.sure of the pit during s'\ Jer time months. Actual disposal operations ~ 'r conducted for a short period of time during the summer based. on the reserve pit beinö _.,)ed as a temporary storage pit with the cuttings disposed of in a continuous manner after the drilling of these wells is complete. (13)At the time of this submittal for approval, there has been no annular disposal into this wellbore. (14) The well waste to be collected and temporarily stored on the NNA # 1 location will come from the NNA # 1 well, the Pearl # 1 well, the Griner # 1 well and the as yet unnamed "J Pad' well. These wells are located geographically on the South Kenai Peninsula. The Locations of these wells are as follows: NNA # 1 Section 11 T2SR13W Pearl # 1 Section 24 T1SR14W Griner # 1 Section 3 T5SR15W "J PAD" # 1 Section 2 T5S R 15 W (15) The limit specified in (d) 1 of 35000 bbls is a little tight for the proposed volume of waste identified. UNOCAL requests that the limit be extended to 45,000 bbls to allow for precipitation during the time frame needed. . As per (d) 2 of this regulation, the plan is that the operations generating wastes and disposing of same will be concluded within the 1 year time frame limit. As per (d) 3 no wastes will be pumped into a hydrocarbon bearing stratum. UNOCAL requests an exception to the section (d) 4 of this regulation to allow disposal of cuttings from the other surface locations identified in this document in the NNA 9-5/8'~ by 7" annulus.. There are several reasons that UNOCAL requests this exception. At the present time UNOCAL does not have access to a Class 2 Disposal well on the Kenai Peninsula. (UNOCAL cannot haul waste into the Kenai National Wildlife Refuge where we do operate a class 2 äisposal well.) Obtaining permission to dispose of cuttings into this annulus will also prevent the use of the surface reserve pit on the Pearl Location and prevent construction of reserve pits at the Griner # 1 well site, and at the "J PAD" well site. UNOCAL believes that the benefits of not constructing additional pits is sufficient reason to request this exception. (16) Should 'additional data or information be needed to by the commission to grant these requests, please'contact Jim Mosley at UNOCAL 907-263-7679 or Tim Brandenburg at UNOCAL 907-263-7657. UNOCAL is aware of the conditions set forth in subpart (e) (1), which state that disposal will not be allowed into freshwater zones. Subpart (e) 1 (B) defines < or = to 3000 ppm as fresh water. The charts enclosed above indicate that log analysis shows that the chlorides are in excess of this definition. Subpart (e) (2) restricts disposal pressures to below the leak off test. UNOCAL request that the pressure limit be based on not more than 500 psi greater than the leakoff. The leakoff indicates that this is the minimum pressure needed to put fluids and cuttings away. Some reasonable pressure above the leakoff may be needed to put the cuttings away. UNOCAL suggest that this limit be made to be 500 psi above the leak off test pressure. UNOCAL will comply with (e) 3, (e) 4, and (f) of this regulation. Page 7 of7 03/07/02 AOGC L TR 17 JAN .doc ·. ·UNOCALf> ') ) LEAK OFF TEST ("LOT") PROCEDURE 1. Clean out the rathole below the shoe, and drill 20' of new hole. Circulate and condition mud. 3. R/U and test cement lines. 2. Pull the drill string into the shoe. R/U to monitor both drill pipe and drill pipe x annulus pressures. 4. Close the pipe rams and pump down the drillpipe at a slow rate (1/4 BPM). 5. Measure the volume pumped and plot annulus pressure-vs-cumulative volume pumped. 6. Upon initial leak off (Point B), continue to pump 1 bbl at injection pressure (Point C) taking pressure readings every % bbl pumped. 7. Stop pumping and record shut-in pressure 10 seconds after initial shut-in (Point D). Note: The point "D" shown in the attached graph (10-second shut-in) is the value used to calculate LOT. The LOT (expressed in equivilent mud weight "EMWn) is calculated as follows: LOT = Mud weight in hole, ppg + 10-Second Shut-In Pressure. psi (0.052) X (shoe depth TVD, ft) C ~~ SURFACE PRESS. lO~c. (psi) VOLUME PUMPED (DOLS) . þ SHUT -IN-TIME (MIN) Point" A" will have some variance until the system begins to pressure up. Point "B" is the fracture iniatation pressure. Point "C" is known the injection pressure. Point "D" is fracture closure pressure measured 1 0 seconds after shutting down the pumps. NOTES: Happy Valley #2 10-401 Application Cement Pro~ram Summary Depth Gauge Top of Cement Annular Slurry WOC Open Hole Casing Volume to Size (in.) MD TVD Hole MD TVD TOC Volume Time Excess (ft) (ft) Size (in) (ft) (ft) (fP) (fP) (hrs.) (%) 13.375 80 80 Drive Pipe 9.625 1000 1000 12.25 0 0 315 432 2:50 40 7 4590 4200 8.5 1200 1200 430 516 2:50 20 3.5 10379 9815 6.125 5750 5200 543 782 4:20 20 Casing Slurry Mix Water Density Qty. Yield Size Slurry Cement Description (ppg) (sxs.) (fP/sx) Volume Quantity (In.) (fP) (gal/sx) Type 13.375 Lead Drive Pipe . Tail 9.625 Lead Class "G" 12.0 106 2.41 256 14.3 Fresh Tail Class "G" 15.8 150 1.17 176 5.06 Fresh 7 Lead Class "G" 12.0 141 2.41 340 14.3 Fresh Tail Class "G" 15.8 150 1.17 176 5.06 Fresh 3.5 Lead N/A N/A N/A N/A N/A N/A N/A Tail Lite Crete 12.0 328 2.38 782 8.06 F res h · . J ) ·UNOCAL8 WELL SCHEMATIC Happy Valley #2 AREA: Deep Creek Unit, Kenai Peninsula RENTALS & PALEO ELECTRIC LOGGING SIGNIFICANT FORM TOPS HOLE SIZEI DEPTH CASING & CEMENT State: Alaska MUD PROGRAM DIRECTIONAL PLANS ~ Drive Pipe +/.. 80' 1.......13-3/8",68#, Weld LOGGING: MWD/GR ..- Gel Mud, MW = 9.2 PPG 9-5/8'" 47#, L-80 BTC Cement to Surface Vertical 12-1/4" +/.. 1000' lilt. Collect Samples from 2000' to Casing pt. 20' Intervals: 3 ea. Washed and dried. '7:l .iiJ Chemical Injection Mandrel +/- 2,000' Oil Base Mud MW = 9.2 to 9.4 PPG LOGGING: MWD/GR >< ~ Top of Liner 4,400' Tangent Incl. - 35 deg. ~ 8-1/2" +/.. 4591' 7",29ppf, L-80 BTC Cement to 1200' ~ EST. FRAC GRAD = 15.4 PPGEMW (.B1psi/ft) Collect Samples from Shoe to TD 10' Intervals: :3 ea. Washed and dried Tangent Incl. - 15 deg. Top Tyonek +/- 6,315' Oil Base Mud MW = 9.4 to 10.4 PPG LOGGING: LWD Quad Combo. 6..1/8" +/.. 10,379' ~ a.. 3-1/2", L-80, 9.2 ppf, Imp. BTC Liner Cement to - 5,750' (5,200' TVD) All Depth Reference RKB +22' AGL , Collapse pressure is calculaled; Normal Pressure Fluid Gradient for exlernal slress (.44 psilft) and Ihe casing evacualed for the inlernal stress (0 psilft) .. See attached sheel for calculalion of MASP TENSION MINIMUM COLLAPSE COLLAPSE WEIGHT TOP OF STRENGTH PRESS @ RESIST. MINIMUM DESCRIPTION WIO BF SECTION TENSION BOTTOM wlo TENSION MASP YIELD GRADE THREAD LBS LBS 1000 L8S SF TENSION PSI' PSI SF COlL. PSI" PSI SF BURST L-80 BTC 47000 47000 10B6 23.11 440 4750 10.80 763 6870 9.00 L-BO BTC 133110 133110 676 5.08 1848 7020 3.80 3205 8160 2.55 L-BO IMP-BTC 42586.8 42586.8 207 4.86 4319 10530 2.44 3765 10160 2.70 DESIGN BY: Larry Busler DATE: 4-Jun-03 CASING DESIGN WELL: Happy Valley #2 FIELD: So. Kenai See\. 1 MUD WT. 9.2 PPG MASP= 763 psi" See\. 2 MUD WT. 9.4 PPG MASP= 3,205 psi See\. 3 MUD WT. 9.8 PPG MASP= 3,765 psi INTERVAL CASING SIZE BOTTOM TOP LENGTH WT. 9-518" 1000 0 1000 47 TVD 1000 0 2 7" 4590 0 4590 29 TVD 4200 0 3-112" 10379 5750 4629 9.2 TVD 9815 5200 .. ") ) ) Happy Valley #2 10-401 Application Maximum Anticipated Surface Pressure (MASP) and Maximum Expected Down Hole Hole Pressure (MEDHP) Calculations Assu mptions: · Maximum pore pressure is 9.3ppg EMW (0.48 psi/ft) · Rock fracture gradient is 15.6ppg EMW (0.81 psilft) · A Safety Factor "SF" of 1.0 ppg EMW will be used over the rock fracture gradient · Methane gradient is 0.1 psi/ft MASP Calculations: Surface Casing: 9-5/8" @ 1,000' MD/1 ,000' TVD MASP = Injection Pressure at Shoe + S.F. - Hydrostatic Methane Gradient MASP = (0.052 x (15.6 ppg + 1.0 ppg) x 1,000 ft) - (0.1 psi/ft x 1,000 ft) MASP = 763 psi Intermediate Casing: 7" @ 4,591' MD/4,200' TVD MASP = Injection Pressure at Shoe + S.F. - Hydrostatic Methane Gradient MASP = (0.052 x (15.6 ppg + 1.0 ppg) x 4,200 ft) - (0.1 psi/ft x 4,200 ft) MASP = 3,205 psi Production Casing: 3-1/2" @ 10,379' MD/9,815' TVD MASP = Formation Pressure - Hydrostatic Methane Gradient MASP = (0.052 x 9..3 ppg x 9,815 ft) - (0.1 psi/ft x 9,815 ft) MASP = 3,765 psi. MEDHP Calcuation: MEDHP = Pore Pressure x Drilled TO, TVD MEDHP = 0.052 x 9.3 ppg x 9,815 ft MEDHP = 4,746 psi Happy Valley #2 Cuttings Disposal Description for Permit to Drill The drilling muds and cuttings from the Happy Valley #2 Well will be ground and injected into the NNA #1 annulus. Pennission for this disposal has already been secured from the Alaska Oil and Gas Conservation Com.mission (AOGCC). The cuttings will either be ground at the Happy Valley pad and the slurry transported to the NNA #1 pad for injection or the raw cuttings will be transported from Happy Valley to NNA #1 with the grinding to occur at the NNA #1 pad. This decision will be made contingent on additional disposal that may occur at the NNA #1 annulus contiguous with the Happy Valley disposal. Unocal Alaska does not intend to request authorization under 20 AAC 25.080 for an annular disposal operation in the Happy Valley #2 well. . ' ' } . ..~ ) ..~OCAL. Alaska Resources Shallow Hazard Analysis in Support of Unocal #2 Happy Valley Well Potential Shallow IIalæ1Js We do not anticipate encountering shallow gas hazards during the drilling of the Unocal #2- Happy Valley well. At wells in the vicinity, no non-coal gas shows have been logged in the ·shallow Sterling formation to a depth of2000' +1-, nor have any drilling problems been encountered historically. At the Unocal NNA#l well located to the north, the first logged gas shows were from Beluga coals at approximately 4200' to 5~00'. Primary gas reservoir objectives at the Happy Valley #2 well are Lower Beluga and Upper and Middle Tyonek sandstones at depths between 4500' and 9700' TVD. Structure The Happy Valley structure consists·ofamoderate-sized four-way anticline based on seismic, gravity, magnetics, surface geology, ·and petrophysical data. It is bounded on the north by a normal, down-to-the-north fault separating the Deep Creek Unit # 1 well and the Happy Valley closure. The east flank of the Happy Valley structure is a high-angle reverse fault verging east, the hanging wall being the Happy Valley four-way closure. Stratigraphy and Reservoir Objectives Sterlin2 Formation The Sterling formations outcropping and subcropping below Pleistocene fluvial and glacial deposits in the area consists of interbedded sandstone, siltstone, mudstone, carbonaceous shale, and coal. The sandstone is mainly tan or buff yellow, and fines upward from coarse to very fine grained. The most common bedforms consist of trough crossbeds and convoluted, planar crossbedded and ripple laminated beds. Siltstones and mudstones are dark to light gray and are ripple laminated, rooted or burrowed. The carbonaceous shales and coals are dark gray, fissile, or black, laminated, banded. The sandstones appear fluvial point bar deposits with fair to poor lateral extent. The coals and carbonaceous shale beds reflect deposition in overbank-floodplain and mire enviromnents. Overall, the Sterling is sand-rich, without . Page 1 O:Wew Ventures\CLProsj :\Happy Valley Trend\061203_hv2_shallow. rd. doc indications of sealing capacity for shallow gas hazards. Additionally, nowhere does the Sterling produce gas within the first 2000' of the surface. Belu2a Formation Where the Beluga Formation crops out to the south at Anchor Point, it consists of interbedded siltstone, mudstone, carbonaceous shale, and sandstone. Thin broken and papery coal beds occur in places. The sandstones are drab gray or buff yellow and fine upward from medium to very fine grained. The sandstones are mainly trough crossbedded, with some planar bedding and ripple laminations. The first prospective gas shows were encountered in the Lower Beluga all three nearby wells-the Deep Creek Unit # 1, the NNA # 1, and the Happy Valley #31-22 wells, at depths of 4400-5600' (Happy Valley). No drilling hazards have been exhibited in the Beluga in either of the previous three wells in the vicinity; however, given an optimal structural position updip of all three previous wells, plus a petrophysically somewhat ambiguous reservoir types in the Beluga, would suggest care be taken while drilling through. Cook Inlet Tertiary Stratigraphy Time M.Y. -10- -20- -30- -40- -50- -60- Per. Epoch Quaternary Pliocene Q) c: Q) C) o Q) Z Q) c: Q) (.) o :E Cook Inlet Fm. :, ,I:, ::·West··' I., ',.' , , ,:iF·~reland,. Dlig. Q) c: Q) C) o Q) co Q. Eocene 1,1 '. ':".1 Figure 1: Tertiary Stratigraphic column for the Cook Inlet Basin (after McGowen and Doherty, 1992) Paleo. 061203 _hv2 _ shallowhazard.doc l' ¡,\ O:Wew VentureslClProspe )appy Valley T rend\061203_hv2 _ shallowha7 )dOC Northwest-southeast depth seismic section through bottom hole location. High amplitude intervals above 1000 feet are coals, which are expected to give gas shows. The four horizons drawn are (from top to bottom): Beluga (green), Tyonek (orange), Middle Tyonek (yellow), and Hemlock (purple). First gas shows, correlated from the Happy Valley #31-22 well, are expected in the lower Beluga, and primary reservoir objectives are Upper and Middle Tyoneksandstones. 061203 _hv2_ shallowhazard.doc O:\New Ventures\CI_Pros¡. \Happy Valley Trend\061203_hv2_sha/Jowl, :d.doe ,." ~.':!I ~ 'r.1 ' ~.,.,. , ,,:.... '...., <!t;¡. tII·, " "1"" -,.' ~ , ,', ' I'" ~t~ ,", ". ··"l~'It'~!9;·· -,.;. ...'.',¡I~:'"" ~~\'. ,', 'I"~ ~~I. .aI~~' .., , , "."': '0' ~.. . " , "'F.¡;j' . ,", 1~1' W. ~ ~;~ ~·~\'.I.. ,,' ," ,'I, ,jr ,..r.~, :" " \ . 4~ . .. t .' 27 . ""~~~~¥:~~"t I'~ ¡/I.:It:.'~ 1 :~: . .\1' ~ ~I I ,;,. I.j~, 't,I¡I'. ~ I ~.. . rr). 4....' J~ . r 1!',~~5:· .~, ":':::;j;':':f~:~:~::':' , , ; ',r,,,\:,: ' .. ',."';,.: ,,:,\~.)~,::, ,:::~.~:~ UNOCALqø HAPPY VALLEY A Altl1rnatlve 1 ~"Qrd "";'"1]11'"1 T.:'::' R1 ~J/II !:."co:,,-,.2: 5-:, su 5<;' (Or;- þJ 's I ;-;¡,; . ,~- '^' J{l1) , . A Ci 'W(I 1S() ~"'I A¡:u;lI¡ .!:jilt.;: PIAno;, ZOOIl·c' N,l.CQ7 :u....._.~.~.. I'." ~_,.. -.&.l_ Surface pad for Happy Valley #2 is at Northing 2189775.04, Easting 228100.43, and bottom hole location is to the northwest at Northing2191547.92, Easting225865.75. Total depth is: 10379 feetMD, 9815 TVD, 9075 TVD SSe 061203_hv2 _ shallowhazard.doc I~ {I O:\New Ventures\CLProspec. '¡ þPpy Valley Trend\061203_hv2_shallowhaz "foe ~I'. UNOCAL@ ~1I V:tBK ':'1 i =1:. : Unc-=.;¡ 1 K.;:.ll: H:.PF'Y V~ll':'i" ~:: ,:P3,~ F'i..1·:\: i:<>n,;¡¡ E~plor;¡tl.:'" :::tl'u"tur.::,: w.PP'l Vk1..1..E1 :::,:-",,1..·: 1 in . SaD :r: l).2t",: :;:1Ø-~I.21'- ::003 XJr¡ ·3300 ·:1500 ·2000 ·1500 ·1000 .~ , "I~- 500 2(1)) M_g DQ~ ~ E: ='0.02 c, ) TrUll liIortb tIII,Is.l1I / .1'11I:\11I1 ~..~rt\...tI :'U''f.:' ",W,.';I'.r ..JtJ.IJ~'Y !:tva ~. >?~ ~J'%- '8,. o ·3300 ·2500 ·2000 ·1500 ..:oe:c WEST ·1000 .~ EAST ::.;.:> ~ 100) 1500 II :I: l- rs Z ( 100:. 1000 :I: 500 I- :;. o U) v v v 061203_ hv2 _ shallowhazard.doc 000 ...ot.. 'I(~nl IIn IIJ\I ~.:' ):".",11., tt.1W ~1,. . IIMldt) /.IXf.\.Jtnl',It, "",I )'X~r..'flllf' IN ,'" _1111101 ....". .'1...,,1..,','11 .......... (l1."'f;....:\uc.·...' o~ \I C>W'C",PI IÞ.'I:'rll loXðM) (,'101' :Iœ~1:·1·..· (,Ir, r,1I ElJD ) ~ l-r-I~ If' ~, rrn IT: ®~, fÆ ~ ~!Æ ',-_-, £..1 \\ l. L__,t. U__ lr Lru L-::) ~ ') A.TIA.~1iA OILAlVD GAS CONSERVATION COMMISSION Larry Buster . Drilling Engineer U nocal PO Box 196247 Anchorage AK 99519 FRANK H. MURKOWSK/, GOVERNOR 333 W. JTH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Happy Valley #2 U nocal Permit No: 203-113 Surface Location: 1165' FEL, 1234' FSL, Sec. 22, T2S, RI3W, SM Bottomhole Location: 3438' FEL, 2956' FSL, Sec. 22, T2S, RI3W, SM Dear Mr. Buster: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drillit;lg 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. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. Unocal assumes the liability of any protest to the spacing exception that may occur. 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, !2Æ-.L-; ~~~ Randy Ruedrich Commissioner BY ORDER ÇµHE COMMISSION DATED this*day of June, 2003 cc: Department ofFish & Game, Habitat Section wlo encl. Department of Environmental Conservation wlo encl. Exploration, Production and Refineries Section iN6A- (p I z..q/1-()O ~ ) ) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REC·E!VED JUN 2 0 2003 1 a. Type of Work Drill X Rentry 0 PERMIT TO DRILL AlasIŒOiI&GasCons.Commission 20 MC 25.005 Anchorage Redrill 0 1 b. Current Well Class: Exploratory X Development Oil 0 Multiple Zone X Statigraphic 0 Service 0 Development Gas 0 Single Zone 0 Bond X Blanket 0 Single Well 0 11. Well Name and Number Bond No.: U 62-9269 ($200,000) Happy Valley #2 / 6. Proposed Depth: 12. Field/P,ool(s): MD: 10,379' TVD: 9,815' De~rfátion Well in Beluga and 7. Property Designation: Tyonek Gas Sands C-061590 & C061589 8. Land Use Permit: 5. 2. Operator Name: Union Oil Company of California dba Unocal 3. Address: PO Box 196247, Anchorage, AK 99519 4a. Location of Well (Governmental Section): Surface: 1165' FEL, 1234' FSL Sec 22-T2S-R13W SM Top of Productive Horizon: N/A 13. Approximate Spud Date: 14-Jul-03 14. Distance to Nearest Property: 1760' 15. Distance to Nearest Well w/in Pool: 70' (Happy Valley #1) Surface: x- 228100.433 16. Deviated Wells: 9. Acres in Property: 2,524.44 10. KB Elevation 739' KB to MSL Y- 2189775.038, Zone - 4 (height above GL): 22 feet 17. Anticipated Pressure (see 20 MC 25.035) Total Depth: 3438' FEL, 2956' FSL Sec 22-T2S-R13W SM 4b. Location of Well (State Base Plane Coordinates): 7" Top Bottom Weight Grade Coupling Length MD TVD MD TVD 68# K-55 Weld 40-80' 0 0 40-80' 40-80' 47# L-80 BTC 1,OPO!-j 0 0 ~. 1 0"'-) 1,000' 29# L-80 BTC "~599~/ 0 0 t)' ...~ 4,200' 9.2# L-80 IMP-BTC ¿~79' 4,400' 4,026"·· :379' 9,815' PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Specifications 32.5 deg. Max. Downhole Pressure: 4,746 psig. Setting Depth Max. Surf Press: 3,765 t"" psig. Quantity of Cement c. f. or sacks. (Including Stage Data) Drive 256 SX 291 SX 328 SX Kickoff Depth: 18. Casing Program: Size Hole 1100 ft. Max Hole Angle: 12-1/4" 8-1/2" 6-1/8" Casing 13-3/8" 9-5/8" 3-1/2" 19. Total Depth MD (ft): Junk (measured): Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Length Size Cement Volume MD TVD Perforation Depth TVD (ft): 21. Verbal Approval: 17. I hearby certify that Printed Name: La us Filing Fee X BOP Sketch X Property Plat X Diverter Sketch X ~ Comission Representative: gOing¿e to the ~st of my knowledge. ~ p - ~VJ., Cement/Casing Program X Drilling Program X Date: Contact: Title: Drilling Engineer Shallow Hazard Analysis X 20 ACC 25.050 Reqs 0 20. Attachments Signature' - Phone: FOR COMMISSION USE ONLY Permit to drill API Number: Permit APprq¡raV., .( / number: 20 3 - / / ..i. 50- ..2 3/- 2. 0 0) ¿¡ date: ro( ~/ D3 Conditions of approval: Samples required )lJ Yes 0 No Mud log required Hydrogen sulfide measures 0 Yes "JlNo Directional survey required l (907) 263-7804 Date: 6/17/03 See cover letter for other requirements. ...a Yes 0 No )Jf Yes 0 No Other: "Re;. t 'ßO P E fc ~OOO P ~ · P€ Ý 2.0 AAL 2S".D"5S (1--)[2-) / Iii d¿)/(f-rte.y \J<!...J,~.:t l;\;....( ,I ~ 'LfprvV'e d. Approved by: ~ ß.--eL <./'L.. Form 10-401 Revised 3/2003 l~ SfL JUN 2 '1 2Gtij ~ f/ BY ORDER OF THE Commission COMISSIOt\ Date e,/2-J1CY-j Submit in duplicate ) UNOCALe ) Happy Valley Well #2 General Drilling Procedure 1 Drive 13-3/8" Conductor & Prep. Location. / 2 RJU Nabors Rig 129. N/U Diverter & Function Test. 3 Drill 12-1/4" hole to +1- 1,000' wi MWD. . / 4 Condition & POOH. 5 Run 9-5/8" casing to 1,000'. 6 Cement 9-5/8"casing. 7 N/D diverter, N/U Well Head & BOPE. / 8 TEST BOPE and Casing. 9 PU Drill Pipe & BHA. Displace to OBM. 10 Drill Out and perfonn LO . 11 Drill 8-1/2" Hole to +/, 4,59~, I MWD/GR 12 Condition and POOH. -,.""/".' /") 13 R/U and run 7" casing t~5;9Y. 14 Cement 7" casing. ,....t-'''"' 15 M/U BHA and prep to drill 6-1/8" Hole. Test Casing. 16 Drill 6-1/8" Hole to TD at 10,379' wi MWD-LWD. 17 Condition and POOH. 18 Install and Test Rams for 3-1/2" Tubing. 19 RlU and run 3-1/2" liner to 10,379'. 20 Set hanger at +/- 4,400'. 21 Cement 3-1/2" liner, set liner top packer and test. 22 Tie-back 3-1/2" liner to surface. 23 24 25 /' N/D BOPE and N/U and test Tree. RID and Move Rig. Perfonn Production Testing. General Procedure Happy Valley #2 6/17/2003 ~ . OFFSETS ConsuLting ~ roup 1165' FEL SECTION 22 McLane Testing ~:~:4' FSL T2S R13W SM AK TEL 907.283.4218 FAX 907.283.3265 033001_hv#2_s1d I Dale' OS/27/03 ,-",,\\\, , . ....." t': OF At.. f f ~ :\.............. ...:1 " :f....~.... ~"~1:' :: *~:49 II:i ï'\ '-.:r*~ ..............................,........ t1 ", " ~"~..:.,..,.,...,..".......,.:....~ ~ ~ ",STAN A. MCLANE/.: ð :: " "'~"'" 4637-5 .,,: - I''!'~ " .'- I 0.o...~·""''''·' t--P ..: f. . ''W'E'Ss I O'IP-\. \. ,..... 'h\'\,'" SECTION 22 TOWNSHIP 2 SOUTH RANGE 13 WEST SEWARD MERIDIAN ALASKA SCALE 1 inch = 300 ft. ~ HAPPY VALLEY NO.2 SURFACE LOCATION P.O. 80x 468 SOLOOTNA, AK 99669 -) ) ( -...::::::: OIL ~XISTlNG E:LL ROAD ~ '~&h 2 0 41tQ CJ 1"j:;) _ Jr .~~ ffl tJ (j " 1165' . PROPOSED WELL HAPPY VALLEY NO.2 SURFACE LOCATION . GROUND ELEVATION 716.5 FT. GRID N:2189775.038 GRID E:228100.433 LATITUDE: 59°59'08.781" N LONGITUDE: 151 °29'05.115" W 1234' NOTES 1) BASIS OF COORDINATES: NGS CORS STATION "KEN 1" NAD27. 2) BASIS OF ELEVATION: NGS BM W75 NAVD88. 3) SECTION LINE OFFSETS DERIVED FROM TIES TO BLM MONUMENTS AT SW CORNER SECTION 10 AND SE CORNER SECTION 12 T2S R13W SM FOUND THIS SURVEY 822 823 527 826 GRID APPLICANT: UNDI:AL 909 w. 9lh Avenue œ Anchorage, AK 99519-7685 FIGURE: 1 -, 1,500 750 o 1,500 ... ... TCm(mr I Feet PROPOSED HAPPY VALLEY 1 & 2 r\ 172" '" .... 24" ^ 19.5" Rig Mat A "" 55" ... .... ^ 7" outlet 38" 11IIII 11IIII ~ 5/8" outlet '" 96" .. C =:J 13 3/8" outlet 46" '" i ) 120" .... <iIIØ--- Ground Level 11" 5M studded Cameron MBS wellhead ( .... 24.5" A 41.5" ,.., " 33" Manifold consists of 3 1/8" 5m flanged valves & one 5m super choke. r---- ...~............,,__. II .,...,...... :="0= =--=- .-:.. - -. =z.r--- I ~~ I 11.1.--- I RIG '29 CHOIŒ IIMFOLD r.-- · : - -" -. '- --- n:w /i£ED - ..... lip - .. - -.. - __ .I --- N{S JlZ7/IJJ ....LILlI ...0.....-.&.. -'--~"; ~O..; ~ o 0 - 0 I _"_ ~ ó ~ to - - ( :::: INLIT c:::---V PANIC LINE ..; .,~ ~ f~1 q BY-PASS LINE ..þ ~oG - 0 ~ ~ TO GAS BUSTER ~ ~ bNOCAL8 Alaska Resources Shallow Hazard Analysis in Support of Unocal #2 Happy Valley Well PotentialShalÐw Hamrds We do not anticipate encountering shallow gas hazards during the drilling of the Unocal #2- Happy Valley well. At wells in the vicinity, no non-coal gas shows have been logged in the shallow Sterling formation to a depth of20()()' +/-, nor have any drilling problems been encountered historically. At the Unocal NNA# 1 well located to the north, the first logged gas shows were from Beluga coals at approximately 4200' to 5300'. Primary gas reservoir objectives at the Happy Valley #2 well are Lower Beluga and Upper and Middle Tyonek sandstones at depths between 4500' and 9700' TVD. Structure The Happy Valley structure consists of a moderate-sized four-way anticline based on seismic, gravity, magnetics, surface geology, and petrophysical data. It is bounded on the north by a normal, down-to-the-north fault separating the Deep Creek Unit # 1 well and the Happy Valley closure. The east flank of the Happy Valley structure is a high-angle reverse fault verging east, the hanging wall being the Happy Valley four-way closure. Stratigraphy and Reservoir Objectives Sterline Formation The Sterling formations outcropping and sub cropping below Pleistocene fluvial and glacial deposits in the area consists of interbedded sandstone, siltstone, mudstone, carbonaceous shale, and coal. The sandstone is mainly tan or buff yellow, and fines upward from coarse to very fine grained. The most common bedforms consist of trough crossbeds and convoluted, planar crossbedded and ripple laminated beds. Siltstones and mudstones are dark to light gray and are ripple laminated, rooted or burrowed. The carbonaceous shales and coals are dark gray, fissile, or black, laminated, banded. The sandstones appear fluvial point bar deposits with fair to poor lateral extent. The coals and carbonaceous shale beds reflect deposition in overbank-floodplain and mire environments. Overall, the Sterling is sand-rich, without . Page 1 O:\New Ventures\CLProspects\Happy Valley Trend\061203 _ hv2 _ shallowhazard.doc indications of sealing capacity for shallow gas hazards. Additionally, nowhere does the- Sterling produce gas within the first 2000' of the surface. Beluga Formation Where the Beluga F offilation crops out to the south at Anchor Point, it consists of interbedded siltstone, mudstone, carbonaceous shale, and sandstone. Thin broken and papery coal beds occur in places. The sandstones are drab gray or buff yellow and fine upward :trom medium to very fme grained. The sandstones are mainly trough crossbedded, with some planar bedding and ripple laminations. The first prospective gas shows were encountered in the Lower Beluga all three nearby wells-the Deep Creek Unit # 1, the NNA # 1, and the Happy Valley #31-22 wells, at depths of 4400-5600' (Happy Valley). No drilling hazards have been exhibited in the Beluga in either of the previous three wells in the vicinity; however, given an optimal structural position updip of all three previous wells, plus a petrophysically somewhat ambiguous reservoir types in the Beluga, would suggest care be taken while drilling through. Cook Inlet Tertiary Stratigraphy Time M.Y. Per. Epoch Quaternary Pliocene -10- CD C CD C) o CD z CD C CD u .9 :e -20- -30- Olig. CD -40- c CD C) 0 Eocene CD 16 -50- Q.. -60- Paleo. Cook Inlet Fm. Figure 1: Tertiary Stratigraphic column for the Cook Inlet Basin (after McGowen and Doherty, 1992) 061203 _hv2_shaUowhazard.doc O:\New Ventures\CLProspects\Happy Valley Trend\061203_hv2_shallowhazard.doc Northwest-southeast depth seismic section through bottom hole location. High amplitude intervals above 1000 feet are coals, which are expected to give gas shows. The four horizons drawn are (from top to bottom): Beluga (green), Tyonek (orange), Middle Tyonek (yellow), and Hemlock (purple). First gas shows, correlated from the Happy Valley #31-22 well, are expected in the lower Beluga, and primary reservoir objectives are Upper and Middle Tyonek sandstones. 061203 _hv2_shallowhazard.doc O:\New Ventures\CLProspects\Happy Valley Trend\061203_hv2_shallowhazard.doc Surface pad for Happy Valley #2 is at Northing 2189775.04, Easting 228100.43, and bottom hole location is to the northwest at Northing2191547.92, Easting225865.75. Total depth is: 10379 feetMD, 9815 TVD, 9075 TVD SS. 061203_hv2_shaUowhazard.doc · ' O:\New Ventures\CLProspects\Happy Valley Trend\061203_hv2_shal/owhazard.doc PUll VI!:m II ]£if.£j ...2tJ)::) "1&.;)_ .1502 :¡: f- a:: 0 z ~10Xi .101») :r: 50:! I- ;:¡ o ~') If If 'J .0 061203 _hv2_ shallowhazard.doc ~ r rT( ..~. ) ú F = ~ ~~, '\ n ~ I , I· I ~ ~~~ "\ - ='= -- -- -- -- ....- ...... -- --" -~-~ -- -- -- ;= .Fi: ,. -JOOOPSI ( /8ALl. VAlVES ~ OPEN I - . - . ~) TO ACCUUULATOR HYDRIL GK r--'--'- 113 5/B · CL~ 5000PSI - . . ~-1 ~ FROM ACCUUULATOR I ANNULAR r :- . . - . . - . . - I ./ ~I ~..-1 I I _ ö·.iS I I· -. _.;J .~ i, --\=r-- .,--.1 V ~ ~lJ£ IJ 5/B'-5000PSII'I.MGES -¡--~^= I DIVERÆR SPOOL \ I I I ) 1. DIVERTER ANNULAR NORM ALL Y OPEN. 2. VALVE NORMALLY CLOSED. == -- -- -- -- ....- ...... ===1 -- ~ -- -- -- ;=, ::::¡: OOE II' T 'W' ~~ I . I · ~ \ l r " FABRI-VALVE 12- FIG. 36 KNIFE VALVE HIOO'-o- I ~ DESCRIP110N / ~~'=r:l~F~~~~Of ft IVøbors A I--L- Nabors Þbko DrAIIng Inc. IIIIUIIIII 2525 C street SUite 200 AIMMIII_~ Anchorage. AIaIka 99S03-21539 907-263-6000 RIG 129 PRGIECT TnlE DIVERÆR RIG· 129 DfWIN BY Q£CICED BY TOAf REED AI'f'RMD BY REV. ~~~~'F ~ .,~I~ ~\ ..\~ ~~ 1ft f' I~ \ ~ ~J ~ ~ ~-_' 0 I ~h. . I,' I 'I ; "0 ~r~ '., r.-", WIt > rO ä -~Ir' a' ~ ~'t1R:.: I ~~I ~I- '-TJD I ~ " LJ I ,~. ìlr'·~w.urIU . ""\8 Aa.1II I _ I --- )\ J\ yvv . Á <~'I Ld ~ ,~"~Y~ULJVI\.:~ "Ç~ ~ ~ _ . ;;;::>-^"'~I"'m ~,.Io r:::J. ~ ....., v v y ~ SCM.E OOE DWG. NO. 3/28/03 00. 1 OF 1 UNOCALi> LEAK OFF TEST ("LOT") PROCEDURE 1. Clean out the rathole below the shoe, and drill 20' of new hole. Circulate and condition mud. 3. RIU and test cement lines. 2. Pull the drill string into the shoe. R/U to monitor both drill pipe and drill pipe x annulus pressures. 4. Close the pipe rams and pump down the drillpipe at a slow rate (1/4 BPM). 5. Measure the volume pumped and plot annulus pressure-vs-cumulative volume pumped. 6. Upon initial leak off (Point B), continue to pump 1 bbl at injection pressure (Point C) taking pressure readings every % bbl pumped. 7. Stop pumping and record shut-in pressure 10 seconds after initial shut-in (Point D). Note: The point "D" shown in the attached graph (10-second shut-in) is the value used to calculate LOT. The LOT (expressed in equivilent mud weight "EMW") is calculated as follows: LOT = Mud weight in hole, ppg + 10-Second Shut-In Pressure, psi (0.052) X (shoe depth TVD, ft) C "'--~ SURFACE PRESS. 10 sec. [psi) VOLUME PUMPED [BBLS) . . SHUT -IN-TIME [MIN) Point" A" will have some variance until the system begins to pressure up. Point "B" is the fracture iniatation pressure. Point "C" is known the injection pressure. Point "D" is fracture closure pressure measured 1 0 seconds after shutting down the pumps. NOTES: ') } Happy Valley #2 10-401 Application Cement Proaram Summary Depth Gauge Top of Cement Annular Slurry WOC Open Hole Casing Volume to Size (in.) MD TVD Hole MD TVD TOC Volume Time Excess (ft) (ft) Size (in) (ft) (ft) (fP) (ft3) (hrs,) (%) 13.375 80 80 Drive Pipe 9.625 J;? 1000 12.25 0 0 315 432 2:50 40 7 4200 8.5 1200 1200 430 516 2:50 20 3.5 46179 9815 6.125 5750 5200 543 782 4:20 20 Casing Slurry Mix Water Density Qty. Yield Size Slurry Cement Description (ppg) ( sxs.) (fP/sx) Volume Quantity (In.) (fP) (gal/sx) Type 13.375 Lead Drive Pipe Tail 9.625 Lead Class "G" 12,0 106 2.41 256 14.3 Fresh Tail Class "G" 15.8 150 ' 1.17 176 5.06 Fresh 7 Lead Class "G" 12.0 141 2.41 340 14.3 Fresh Tail Class "G" 15.8 150 . 1.17 176 5.06 Fresh 3.5 Lead N/A N/A N/A N/A N/A N/A N/A Tail Lite Crete 12.0 328 2.38 782 8.06 Fresh AREA: Deep Creek Unit, Kenai Peninsula RENTALS & PALEO ELECTRIC SIGNIFICANT LOGGING FORM TOPS ..J LOGGING: MWD/GR Collect Samples from 2000' to Casing pt. 20' Intervals: 3 ea. Washed and dried. LOGGING: MWD/GR Collect Samples from Shoe to TD 10' Intervals: 3 ea. Washed and dried Top Tyonek +/- 6,315' LOGGING: LWD Quad Combo. All Depth Reference RKB +22' AGL 4 ~ ) WELL SCHEMATIC Happy Valley #2 HOLE SIZEI DEPTH Drive Pipe +/- 80' 12-1/4" +/- 1000' x 8;}!?;::) ~ 6-1/8" +/- 10,379' ..- ~ UNOCAL8 CASING & CEMENT State: Alaska MUD PROGRAM DIRECTIONAL PLANS l13-3/8", 68#, Weld Gel Mud, MW = 9.2 PPG 9-5/8",47#, L-80 BTC Cement to Surface Vertical III.. TI iJ Chemical Injection Mandrel +1- 2,000' Oil Base Mud MW = 9.2 to 9.4 PPG X Top of Liner 4,400' Tangent Incl. - 35 deg. 7",29ppf, L-80 BTC Cement to 1200' ~ EST. FRAC GRAD = 15.4 PPG EMW (.81psi/ft) Tangent Incl. - 15 deg. Oil Base Mud MW = 9.4 to 10.4 PPG 3-1/2", L-80, 9.2 ppf, Imp. BTC Liner Cement to - 5,750' (5,200' TVD) CASING DESIGN WELL: Happy Valley #2 FIELD: So. Kenai Sect. 1 MUD WT. 9.2 PPG MASP= 763 psi" Sect. 2 MUD WT. 9.4 PPG MASP= 3,205 psi Sect. 3 MUD WT. 9.8 PPG MASP= 3,765 psi INTERVAL CASING SIZE BOTTOM TOP LENGTH WT. 9-5/8" 1000 0 1000 47 TVD cJS7 0 2 7" , 590 0 4590 29 TVD 0 3 3-112" 10379 5750 4629 9.2 TVD 9815 5200 DATE: 4-Jun-03 DESIGN BY: Larry Buster TENSION MINIMUM COLLAPSE COLLAPSE WEIGHT TOP OF STRENGTH PRESS @ RESIST. MINIMUM DESCRIPTION W/O BF SECTION TENSION BOTTOM w/o TENSION MASP YIELD GRADE THREAD lBS lBS 1000 LBS SF TENSION PSI" PSI SF COlL. PSI" PSI SF BURST L-80 BTC 47000 47000 1086 23.11 440 4750 10.80 763 6870 9,00 L-80 BTC 133110 133110 676 5.08 1848 7020 3.80 3205 8160 2,55 L-80 IMP-BTC 42586.8 42586.8 207 4.86 4319 10530 2.44 3765 10160 2.70 -' .. See attached sheet for calculation of MASP . Collapse pressure is calculated; Normal Pressure Fluid Gradient for external stress (.44 psi/f!) and the casing evacuated for the internal stress (0 psi/f!) _/ ') ) Happy Valley #2 10-401 Application Maximum Anticipated Surface Pressure (MASP) and Maximum Expected Down Hole Hole Pressure (MEDHP) Calculations Assumptions: · Maximum pore pressure is 9.3 ppg EMW (0.48 psi/ft) · Rock fracture gradient is 15.6 ppg EMW (0.81 psi/ft) · A Safety Factor "SF" of 1.0 ppg EMW will be used over the rock fracture gradient · Methane gradient is 0.1 psi/ft MASP Calculations: Surface Casing: 9-5/8" @ 1,000' MD/1 ,000' TVD MASP = Injection Pressure at Shoe + S.F. - Hydrostatic Methane Gradient MASP = (0.052 x (15.6 ppg + 1.0 ppg) x 1,000 ft) - (0.1 psi/ft x 1,000 ft) MASP = 763 psi Intermediate Casing: 7" &0/4.200' TVO MASP = Injection Pressure at Shoe + S.F. - Hydrostatic Methane Gradient MASP = (0.052 x (15.6 ppg + 1.0 ppg) x 4,200 ft) - (0.1 psi/ft x 4,200 ft) MASP = 3,205 psi Production Casing: 3-1/2" @ 10,379' MD/9,815' TVD MASP = Formation Pressure - Hydrostatic Methane Gradient MASP = (0.052 x 9.3 ppg x 9,815 ft) - (0.1 psi/ft x 9,815 ft) MASP = 3,765 psi ;J' MEDHP Calcuation: MEDHP = Pore Pressure x Drilled TD, TVD MEDHP = 0.052 x 9.3 ppg x 9,815 ft MEDHP = 4,746 psi v ') ) Happy Valley #2 Cuttings Disposal Description for Permit to Drill The drilling muds and cuttings from the Happy Valley #2 Well will be ground and injected into the NNA #1 annulus. Pennission for this disposal has already been secured from the Alaska Oil and Gas Conservation Commission (AOGCC). The cuttings will either be ground at the Happy Valley pad and the slurry transported to the NNA #1 pad for injection or the raw cuttings will be transported from Happy Valley to NNA #1 with the grinding to occur at the NNA #1 pad. This decision will be made contingent on additional disposal that may occur at the NNA #1 annulus contiguous with the Happy Valley disposal. Unocal Alaska does not intend to request authorization undýr 20 AAC 25.080 for an annular disposal operation in the Happy Valley #2 well. / DATE: 17 Jan, 02 ) ) TO: Mr. Tom Maunder P .E. Senior Petroleum Engineer State of Alaska Oil & Gas Conservation Commission Tom ~Maunder@admin.st.at.e.ak.us FROM: Jim Mosley Advising Drilling Engineer Unocal MpsleyJ @Unocal.com SUBJECT: Annular Disposal of Drilling Waste Request for NNA # 1 Tom, Unocal would like to amend the cement program and the permit to drill to allow for annular disposal of drilling fluids and cuttings .on the NNA #1 well. The reasons for this amendment are as follows: 1. We anticipated encountering gas pay in the interval below the surface casing. We did not see any gas in the well for several thousand feet below thesurface casing depth of2l50'. Based on this we will not cement the 7" casing to the shoe of the 9-5/8" casing. We intend to bring cement to about 4000' covering all of the gas shows. J L ~ ~ 9-5/8" AT 2150' Planned Top of Cement 4000' " .Þ ~ Planned 7" AT 9900' Proposed 4.5" Liner at 11200' ~ ~ 2. Anticipated top of cement will be around 4000 feet and leave the interval from 2150' to 4000' available for annular disposal. 3. The surface casing was cemented with full returns to the surface. After drilling out the cement the following describes the leak off tests. Leak off testing on the 9-5/8" Shoe was done along with a Page 1 of7 03/07/02 AOGC LTR 17 IAN.doc squeeze job on the shL~. )The first leak off test resulted in breakdown a, }o psi back to 200 psi. We pumped into the well with 200 psi. The after squeeze leak off test pressures were essentially the same· as before the squeeze. The conclusion was that the formations below the shoe were weak and broke down during the first leak off test and repeated their breakdown at the same pressure I..Y~~.~~.~. .....~~.~.P.... te~..~..P..~.~. ...e.~~~.~..~.~.. (BBLS) (psi) 0.12 25 0.24 100 0.36 200 0.48 300 0.60 400 0.72 500 0.84 525 PI8sI.rø vsVdLl1'5 EO) _,...."'."'.....~... .............~........,..........,..............._... ............................,........."...................."''''................ ......_.."............. ......·.·............·...w........·.....·.·......·.·.., ! ¡ ! i ¡ i i ! i I i i i i !OO ~ /.....-- / // /' ,// ,// // ."./ ~ ¡ i 0.00 400 .::- .2. ;3)) 1 ax¡ 100 0.10 0'10 0.00 Q3) o.~ ~(EEU)0.9) 000 after the squeeze job. The mud weight during the test was 9.5 ppg. The leak off shown above calculates to 14.0 ppg equivalent. The graph of the leak off test is above: 4. UNOCAL does not have a disposal well available for cuttings disposal on the Kenai Peninsula and would like to use the annulus of the NNA # 1 well for to dispose <?f cuttings. Because of the lack of a disposal well, Unocal will also request that cuttings from the next three wells be allowed to be hauled to the NNA reserve pit for disposal into this annulus. 5. After the NNA well is completed, the rig will move to and drill the Pearl # 1 well, the Griner # I well,· and an additional Anchor Point well currently designated as the "J PAD". These additional wells are expected to be drilled with OilBase mud through the productiveintervals. The top hole sections will be drilled with water base muds. . · We propose to temporarily store the water base mud and cuttings from these water base mud intervals in the reserve pit on the NNA location where they will be disposed of via annular disposal into the 7" production by 9-5/8" surface casing annulus. Benefits of this plan include not using a reserve pit on the Pearl, Griner or J Pad locations. · UNOCAL proposes to dispose of all of the waste liquids in the NNA annulus. · UNOCAL proposes to dispose of the cuttings that are slurrified into this same annulus. · The cuttings that are not slurrified because they are too big will be kept in the reserve pit and disposed of in the NNA annulus after a grinding plan is finalized. · Our intent is to temporarily transport and store the Oilbase cuttings in safeguard tanks until the grinding and injection plan is formalized. · In all likelihood, the oilbase mud cuttings will be stored on location either at the NNA or at the site they are generated. There is a possibility that we will store theoilbase cuttings at our EFDF facility until the grinding and injection plan is formalized. 6. Fresh water salinities have been determined for the Deep Creek Unit number one well immediately offset to the NNA location. The salinity data for Deep Creek Unit # 1 well has been submitted to Steve Davies with the permit to drill. The salinities below the surface casing shoe depth in the offset well are in excess of the 3000 ppm requirement. Data has been gathered on the NNA well via surface hole logging and via logging of the intervals below the surface casing on the NNA. Resistivity/gammaldensity/neutron data are available on the NNA from surface to TD, Page 2 of7 03/07/02 AOGCLTR 17 JAN.doc Pursuant to 20AAC25.080 Amlu~1 Disposal of Drilling Waste ) (a) An application for Sundry Approval (Form 10403) is attached.with the additional information requested under this section. (b) List of information included with this request (1) The annulus to be used for disposal is the 7" by 9-5/8" annulus. 9-5/8" casing is set to 2150' :rvmtrVD. 7" Casing will be set to 9900' MDfTVD with the planned top of cement behind the 7" at 4000'. (2) The depth of Fresh water as defined by 3000 ppm chlorides is about 1000Jeet. A copy of the data submitted with the Permit to drill is enclosed. (3) The surface casing shoe is set in the base of the Sterling formation. The sandy intervals below the shoe of the 9-5/8" casing are the lower sterling sand or two and the upper few Beluga sands. A marked copy of the log depicting the target disposal interval in the offset well is enclosed. The 9-5/8" Leak off test data from the NNA #1 well is also enclosed. The top of Beluga is 2442' MD in the Deep Creek Unit # I Well, and correlates to be 2533' in the NNA # 1 Well. The two wells are directly correlative throughout these intervals. TheNNA # 1 is 51' low to the Deep Creek Unit # 1 Well at the top of Beluga and the difference is due to structure. (4) There are no publicly recorded wells within a quarter mile of the location. The only publicly recorded water well within 1 mile is the water well on location that was drilled to support the operation on the NNA # 1 location. This water well was completed deeper than household water wells so that it would not drain any future public use water wells that may be drilled in the area. (5) The drilling wastes to be disposed of will consist of the fluids and cuttings from drilling of the NNA Well Number 1, the fluids and cuttings from drilling the Pearl # 1, and the fluids and cuttings from drilling the Griner # 1 followed by the cuttings and fluids generated at the "J PAD". The waste slurry will be comprised of drilling fluids and cuttings with a maximum. slurry weight of about 1 0.5 P~G. The volumes of waste are estimated to be as follows: For the NNA # I well, about 3000 bbls of slurrified cuttings and an additional 7000 bbìs of waste fluids. For the Pearl # 1 the estimate of wastes are some 2500 bbls of slurrified cuttings and an additional 6000 bbls of waste fluids. For the Griner # I well the estimate of wastes are some 2500 bbls of slurrified cuttings and an additional 6000 bbls of waste fluids. For the "J PAD" # 1 welt the estimate of wastes are some 2500 bbls of slurrified cuttings and an additional 6000 bbls of waste fluids. " The total of these four wells will be about 10000 bbls of slurrified cuttings and 25000 bbls of waste fluids. The standard annular disposal maximum of 35000 bbls of waste may be sufficient for these wells, however any snow fall or rainfall that collects in the pit will also be stored and disposed of in the annulus. Ifprecipitation for the time frame is excessive, then the estimate of 35,000 bbls will go up accordingly. The waste fluids will be comprised of slurrified cuttings, drilling mud wastes, completion fluid wastes, wash water, etc. (6) Drilling waste for this location will consist only of the slurrified drilling cuttings, waste drilling and completion fluids, wash fluids, precipitation, and any excess or contaminated cement that has been stored in the reserve pit. (7) The leak off test for the 9-5/8" Casing was repeated with break down occurring at about 460 psi with a 9.5 ppg mud. The shoe strength is (9.5)(.052)(2150)+500=1062+500=1 562psi. This calculates as 1562/.052/2150=13.97 ppg Equivalent shoe strength. (8) There is no perma frost in the South Kenai area and the disposal zone lithology is as follows. The target salinities are attached below the lithology based on Den/Neu and on SP for the offset well. As of the writing of this request, the log data from the NNA #1 well has not been processed. Page 3 of7 03/07/02 AOGC LTR 17 lAN.doc Unocal NNA #1 - r"\'Pposed Annular Injection Inte'-~flI Uthology- Interval 2140' - 2400' MD in Lower Sterling Formation '-, ~ --:L~,",''''Ml~. t~r"--~[i1"uu'''''''''''_. u__ -- )-i.~. N11rw . ~ '-:~~~~~:::::::::::::2 r" Sit"LI\~fF~ ~C~ '~¡" . .,¡. - ~ ~'I¡) -=o..1~~·~:~ ,(~~ 'J- f"- -;0:.) /~ .~ t'.... , ~ ~~ , ~~--_/ ~ ~ §:; ~I __~~~1::~~__ ~~ ~h;, ~;, .,,5~ ~~~ ~r ro:. qt~ r I~' ~ ~-~ .....-.,:. }~ ~:~ '\ .,~ :fr "} ¡' '" ~'). '"( .,r.P~ -..- ...:..~:' -._~~.' ":;~.....~"" '1r ~ ., ,~ .___.r~, 4~ ~..o...~~ ~~. :' ~ ~ ....~,. 'oJ'" ..... _~_I;..'...., f' "'. f""- ...... '~ ~ ~ " ~. ~~ ~ :~~' d { X . ~ ~ ,~....-...... }:"'" '~"" -...:¡ -, .Q;>- '¿' ~ ti r:;.~ fl Page 4 of7 03/07/02 2140' to 2185' MJ: Fining ~ sequence of sitty sardstone gra::fing to sitty day; CœI at 2100 to 2185' fvÐ; No significant gas shovvs 2185' to 2265' MJ: Fining ~ sequence of conglomeratic sardstone gra::fing to sard and siltstone; C'œI at 2255' to 2265' fvÐ 2265' to 23.'Ð' fvÐ: Fining ~ sequence of conglomerate sarx:t gra::fing to sitty sard; No sigJificant gas shotlvs Z330' to 2415' fvÐ: Interbedded thin sanætone, siltstone and sitty day; No sig1ificant gas shows 2415' to 2400 fvÐ: Fining ~ sequence of silty sardstone and occasionally conglorreratic sandstone gading to silty day; t:asaI sanætone d Sterling Fomation; No significant gas shows AOGC L TR 17 JAN .doc AOGC L TR 17 lAN.doc 03/07/02 Page 5 of7 3000 2500 2000 1500 Depth Feet 1000 . 500 :"8.: ..). ~ ...."..,. .~ . ~ 7000 ... 'r ... [ 6000 Q.. :c u 5000 ~ :E ¡; 4000 ~ .... en 3000 2000 1000 0 . 0 .. . . , ~ . .. ... ....... .. ,- v - - '" -- - '. . \ L - -- - --... "----- ... ... .\: I ~ ~:' ). ~ , ... - , - '" .~ .. .. -~ .. ,.., .. '1",,,, '. . . ~ ·/'· . :r. .: . ~ ",.. "." -. .. ... .... ..,.... 10000 -- "y ~ '::~' ~.., 1" ~._.: ~._~:' . '~.~- ~r ~.~: ~"~.-"""''''~~~.' ,_.~ -~, .:w,..~ ,., "",~,_~w~~_~~,y_ ~~ '~'.W. ~. ~~.,.~~~-'-~ 9000-----.\.S,A.lIIJITYD,A.T,A,USINGRWI1METHOD~ ,.',. "" ,''' I. ,~'" I ,... I .,,11 ,II"":,' ~",., 1-:::' SALINITY DAT A USING SP METHOD I .....-. .... - -.. ,. .-.. ..- ... ... . ... .. -.. ... 8000 - ,,^ . ", ~. , : ~,~, ~" w ,,, u,~" , 'u ~ :~1!iV _ .. ..._.-....'Y"v-~ ,. , -,.-- Deep Creek Unit #1 Salinity Calculations DeepCreek Salinity Calculations Calculations Method #1 - SP Use Rmf=0.61 Rm Form. Depth Geo. Hdr Chart Looation Well Top SP R16 R64 Grad t K Rm Rmf Rwe Salinity ppm Chi LOG HEADER: 80.00 5,00 15·2S·13W Deep Ck 1 Sterling 123 22 175 270 0,0066 75,86 62,447 4,84 2,97 1.456 4000 15·2S·13W Deep Ck 1 SterlinQ 580 18 80 110 0.0066 78,86 62,797 4.67 2,95 1.654 3000 15.·2S-13W Deep Ck1 Sterling 600 15 70 80 0,0066 78,99 62.812 4.67 2.95 1,822 2800 15-2S-13W Deep Ck 1 Sterling 825 22 44 42 0,0066 80.46 62.984 4.59 2.95 1.453 3800 15-2S-13W Deep Ck 1 Sterlin¡:¡ 1120 22 28 36 0,0066 82,40~ 63,21 4.49 2.94 1.452 3900 15"2S·13W Deep Ck 1 Sterlin:! 1480 30 18 19 0,0066 84.76 63,485 4.37 2,92 1,125 4600 15-2S-13W DeepCk 1 Sterling 1700 30 17 15 0,0066 86.20 63,654 4,30 2.92 1,125 4600 15-2S·13W Deep Ck 1 Sterling 2220 30 12 12 0,0066 89,61 64.052 4,15 2,90 1.125 4300 15-2S·13W Deep Ck 1 Beluga 2550 52 22 17 0,0066 91,78 64.304 4,06 2,89 0,563 8000 15·2S-13W Deep Ck 1 Belu¡:¡a 2810 45 29 19 0.0066 93.48 64,503 3,99 2.88 0.703 6500 15-2S-13W Deep Ck 1 TD 12953 0.0066 160,00 72.263 2.40 2,6 Deep Creek Salinity Calculations Method #2 Rwa '.'ee Rrr,I",Ü,o:.1Rm F.:Hn Dep'ltl l='orr.I':'lry Q.:>~" ~ Hdr F<WQ M~h~'·j I~' I...C·-;:~I~ W'911 TCIÇ' ~'P SP ~L~r, 1=1' G¡..slj I !< lilT, I=trn M'!'Tt£.d It:? 5EHII11T'j p:'1T' !)h' I.':)G I-tE:A['IEFI J:h) I)~I ~.co 15·'?::·I'3W (.1'SIeJj C ~ 1 :;',?llIn~ 12:) L" (', 32 ,'~0 O(,I~~ 7':-.~) ~ 7:''jr; 0:..2 01':- 1 12 .2 ~.¡7 3J ~:! "f.::hW·3'¿>' 1~,.::'.13W [)~'::Ip GtI I S,,=,rllr,g :;'3(- If! ~, 32 , 1~1 l)r)&5 78 % - 77~~ r.,¿ ~h) 1.12 .. ~.,:- 1&1 15 ht2'-::tl\"I~IE-1 '':-.::''::o.13W [;.~"'~. c~ 1 ::.,,,,'lon'J t'~I)(1 l'j (13 1;1/) (.jojoj 78 9~" 8 "'13:).1 t:.2 ~1 , (0':- 2 f:I~1 ~ 1-:' ~(I(I '~I.~";.' 3W ü':!",p C~ , :1'=.'rll"ll~ Et.:'$ ~J t."~ .:I.. (1)t,6 ~() JIj ~.. ~8~ t52 9J:' "'1;1 21;tr:· .1.2:' 1 ¡ (II) 1':-·2::'·'JW Ü'9'9~' C. ~ I S'E'rlorr~ ' '21) ;;., , ~ 3~ ('(10505 13.2 .1(1 3(1 J" b:; ~11 .:14 29J , 18 ~(II)(I 1r;.¡I:;.·13W Ü"''9~' C. ~, 50',," Iorr'J IJf!':' ';'(1 18 1(" ~")61) 8.1 7-:' ~. 1 ~"~IJ f3 JC" <'~ ~.g, (I ~7 : ~(U:I . . 1~·23·' 3W Clll3ø:!1~1 G tI 1 5',=,1 hr..:¡ 17(1(1 ';'(1 I) ;1 ,~ I~)~'; '='t :!(I ,'=' 119 ó3 ó':- E.':- :1 ~~2 (1.133 t:~I:II)I) ,5·::·S·13W ÜE-'9P CII' S"~rlon~ ~I::!(I 3') ~'2 '2 ~,I)oj¡; 89 t" , ':-.2';3 ó4 (1Ij 701 2 ç..) (I 7'~ -:,'(11) 1':-·:!':;·'3W Ü'9€'~' C ~ , EI€,IoJ'ir;, ;~ ~.rJ :'¡, '':- 17 (o('ó6 ~.., 7~ )(1..1 11 -54 3(1 0101 .:» 8~ (I ~ I:) ~I:II:II~I '~"2 ':'·1 3W C'E'l'P C. ~ 1 B"'''J~~' 2~'(' .¡S 13 1r;. l)r)I:)E. t:\j 4~ ,';¡ ~!.:IE, '54 ':-0 3.":1 ¡. ~'" ~, .¡~ ~r:II) TC' 12~·'j3 (('bE, 1~(II)I) 7~.26 ~ç¡ ~'.tj ) "') OFFSET WELL DATA FRll1v1 DEEP CREEK UNIT # 1 , . ' ) ) OFFSET DATA DEEP CREEK UNIT # 1 SP METHOD [:.:..:':. :]~~E": :~~~F''''''''''''''''''''''''''''' r·....···...·..·..·,......··· ...,.... . ......,...........,........... .. .. ¡ .600j.... . 2800¡ Water Salinity at Deep Creek Unit #1 ¡::: :: :: :.::: ::: :.:~? ~.~:::::::::: :.~~9.~I:: L.....................~...~..?.9.L.....................~.~9.9.L... i::::::::::Jt.þ~:I::::::::::::;;~~i::: j 2220¡ 4300! ¡ 10425¡ 12000~ C·:·:·:·:·:·:·:5}9.4?T·:·:·:·:·:·:·:·}?ªªªT:·:·...................:...............,...., L.................._.::.....................::...,....,.............L. _......,.......... L....,.............. .:,.....................: 1 400 0 _w..·..·.w..·..·'w~..·.'w.w..·..'w..·..,,·.w..,,·..·..·.w.w..w..·..·.w..w.,...~..,,,w.......w.w"".".'':''.~~''.''.''.'''''.''''''''.'h_''.''.''.J 12000 . .:: ... ¡ ~ . ¡ ~ 10000 ¡ 8: 8000 ¡ Æ: 6000 ¡ .S 4000 ! ~ . en 2000 ! ~ 01 o 2000 4000 6000 Depth 8000 10000 12000 The leak off test on the 9-5/8" Casing shoe is discussed above and the job was pumped with full returns to the surface. Approximately 60 bbls of cement was circulated to the surface during the cement job. The 9- 5/8" casing was cemented with 193 bbls of cement. The top of cement on the 9-5/8" casing is at the surface. (9) Anticipated disposal operations will limit pressures to less than 2000 psi on the formation below the shoe. This is slightly more than the fracture gradient observed during leak off testing and will insure that there is a little room for error during pumping operations. The anticipated pump in pressures will be equivalent to or slightly less than the observed leak off. The 9-5/8" casing which will have an internal pressure applied during disposal operations has a'burst rating of 6820 psi and a collapse rating of 4750 psi. The 7" string of casing has a burst rating of 8160 psi and a collapse rating of 7020 psi. Both of the casing strings have a substantially higher ratings than any of the anticipated disposal pressures. (10)The downhole pressure obtained during leak off testing is calculated in (7) above and is 1562 psi. (11) There will be no hydrocarbon bearing intervals in the disposal annulus above the top of cement. All potential Hydrocarbon zones have been identified during the course of logging and drilling.. These zones are all below 4800'. Identification of zones has been conducted using the electric logs, the mud log, and the LWD logs. The upper most zone with a slight hydrocarbon potential is located in the Beluga formations @ about 5000'. The main intervals with hydrocarbon indicators are all in the Tyonek beginning at about 6200'. The top of the cement on the inner string of 7" casing will be at about 4000'. Cement covers all of the potentially hydrocarbon bearing strata. (12) The disposal operations for the NNA will begin shortly after the rig is demobilized off of the pad to begin the Pearl well. The Pearl well is anticipated to require some 40 or so days to drill and case. The following wells, the Griner and the as yet unnamed "J PAD" are both 30 day wells. The intent is to use this annulus to dispose of cuttings from the drilling of the NNA # 1 well, the Pearl # 1 well, the Griner # 1 well, and the "J Pad" # 1 well. The amount of time from start of Pearl to end of drilling on the J PAD will be about 100 days. Disposal operations may need to be conducted intermittently if free board on the pit becomes an issue, Disposal operations will be conducted in a continuous manner after the drilling of these wells and should be finished a month or so after the "J Pad" well drilling and completion operations are finished. The intent would be to close the pit at the end of disposal of all the accumulated cuttings. Because of the winter time freeze ups and because of the potential for intermittent Page 6 of7 03/07/02 AOGCLTR 17 lAN.doc ) ) timing of the disposal operation, it is planned to conduct final dispusal of cuttings and closure of the pit during summer time months. Actual disposal operations will be conducted for a short period of time during the summer based on the reserve pit being used as a temporary storage pit with the cuttings disposed of in a continuous manner after the drilling of these wells is complete. (13)At the time of this submittal for approval, there has been no annular disposal into this wellbore. (14) The well waste to be collected and temporarily stored on the NNA # 1 location will come from the NNA # 1 well, the Pearl # 1 well, the Griner # 1 well and the as yet unnamed "J Pad' well. These wells are located geographically on the South Kenai Peninsula. The Locations of these wells are as follows: NNA # 1 Section 11 T2SR13W Pearl # 1 Section 24 T1SRl4W Griner # 1 Section 3 T5SRl5W "J PAD" # 1 Section 2 T5S R 15 W (15) The limit specified in (d) 1 of 35000 bbls is a little tight for the proposed volume of waste identified. UNOCAL requests that the limit be extended to 45,000 bbls to allow for precipitation during the time frame needed. As per (d) 2 of this regulation, the plan is that the operations generating wastes and disposing of same will be concluded within the 1 year time frame limit. As per (d) 3 no wastes will be pumped into a hydrocarbon bearing stratum. UNOCAL requests an exception to the section (d) 4 of this regulation to allow disposal of cuttings from the other surface locations identified in this document in the NNA 9-5/8'~ by 7" annulus. There are several reasons that UNOCAL requests this exception. At the present time UNOCAL does not have access to a Class 2 Disposal well on the Kenai Peninsula. (UNOCAL cannot haul waste into the Kenai National Wildlife Refuge where we do operate a class 2 disposal well.) Obtaining permission to dispose of cuttings into this annulus will also prevent the use of the surface reserve pit on the Pearl Location and prevent construction of reserve pits at the Griner # 1 well site, and at the "J PAD" well site. UNOCAL believes that the benefits of not constructing additional pits is sufficient reason to request this exception. (16) Should additional data or information be needed to by the commission to grant these requests, please contact Jim Mosley at UNOCAL 907-263-7679 or Tim Brandenburg at UNOCAL 907-263-7657. UNOCAL is aware of the conditions set forth in subpart (e) (1), which state that disposal will not be allowed into freshwater zones. Subpart (e) 1 (B) defines < or = to 3000 ppm as fresh water. The charts enclosed above indicate that log analysis shows that the chlorides are in excess of this definition. Subpart (e) (2) restricts disposal pressures to below the leak off test. UNOCAL request that the pressure limit be based on not more than 500 psi greater than the leakoff. The leakoff indicates that this is the minimum pressure needed to put fluids and cuttings away. Some reasonable pressure above the leakoff may be needed to put the cuttings away. UNOCAL suggest that this limit be made to be 500 psi above the leak off test pressure. UNOCAL will comply with (e) 3, (e) 4, and (f) of this regulation. Page 7 of7 03/07/02 AOGC LTR 17 JAN.doc I I M-I Gel / M-I Bar / Soda Ash / Caustic Soda / Gelex / DD / Sapp / Drill XT Flow Line Cleaners / Centrifuge / Desander / Desilter 10' .. 1000' MD 9 5/8" Casing 12 1/4" Hole Gel - Gelex Hole Cleaning / Gravel/Gas Kick / Lost Circulation / Bit Balling Interval Drilling Fluid Properties 500 1000 10-14 10-14 <20 <8 9.4 9.4 5-10 5-10 20 - 30 20-30 1 'I · Build spud system with pre-hydrated bentonite and Gelex in ftesh water. · Utilize all solids control equipment. · Raise viscosity if gravel sections are encountered. · Pump sweeps if required. · Add DD (drilling detergent) and/or Sapp for possible bit balling. · Potential Problems: Running gravel, bit balling, shallow gas, and swelling clay · Estimated volume usage - 400 barrels. Note: Mud Weights of 10.0 ppg may be required because of potential shallow gas. M-I. L.L.G. 721 West Fírst Avenue Anchorage, Alaska 9950 1 (907) 274-5564 (907) 279-6729 Fax [ 6 or less r 6 or less i I I ill 1000' .. 4591' MD 7" Casing 8 1/2"" Hole ~ ¡ Versa- Pro Oil Mud Mapco 200 1 Versawet 1 Versacoat 1 Versa HRP 1 VG-69 1 Ver- samod 1 Lime 1 Calcium Chloride 1 MI Bar 1 Ventrol 401 Shale Shakers 1 Desilter 1 Centrifuge Coal sloughing, hole cleaning, drill solids buildup I Jd Interval Drilling Fluid Properties E 1000'-4591' 80/20 15 - 30 12 - 16 4-5 cc's 9.0-9.6 20 - 25 1& II · Displace cement in 9 5/8" casing to oil based mud. Utilize used OBM for make up of initial system if possible. · Drill ahead, maintain low shear rate values with VG-69, Versamod, and Versa HRP. Maintain mud weight at 9.4 ppg if possible. · Run centrifuge as needed to reduce solids buildup. · Pump weighted sweeps to aid in hole cleaning. .. If sloughing coal becomes a problem, add 2 - 4 ppb of Ventrol 401 to mud system or spot a concentrated pill of 20 - 25 ppb Ventrol 401 across coal zone prior to trips. For severe coal sloughing consider raising mud weight. It Run 7" casing. · Estimated volume usage is 800 barrels. M-L [,L,G. 721 West First Avenue Anchorage, Alaska 9950 1 (907) 274-5564 (907) 279-6729 Fax I 1000' .. 4591' MD DESIRED PROPERTIES OF CONDITIONED MUD SYSTEM MW. 9.0-9.6 PPG (Begin interval with 9.2 ppg) PV 18-22 (Run centrifuge and add base oil- run as low as possible) YP 12-16 CHL. WHOLE MUD 45,000 mg/l (Is dependent salt % and water %) SALT 30. % wt = 247,000 ppm cl ALKALINITY (PaM) .1.0 EXCESS LIME (LB/BBL) 1.5 -2.0 % OIL 80-90 % WATER 8-12 % DRILLED SOLIDS Maintain as low as possible OIL RATIO 80-90 WATER RATIO 20-10 ELECTRICAL STABILITY 1250 + HTHP 5CC @ 30 MIN& 500 PSI . Build additional Versapro system using the following formulation: 1. Mapco 200 = .82 bbl 2. IMG 400 = 8 ppb 3. Lime 2 ppb 4. Verscoat = 6 ppb 5. Versawet = 3 ppb 6. Versamod = 1 ppb 7. Versahrp = I ppb 8. CaCl2-Water = .09 bbl 9. Barite as required M-L L.£,G. 72l West First Avenue Anchorage, Alaska 9950l (907) 274-5564 (907) 279-6729 Fax I I 4591' ..10379' MD 3 1/2" Casing 6 1/8" Hole f Versa- Pro Oil Mud Mapco 200 1 Versawet 1 Versacoat 1 Versa HRP 1 VG-69 1 Ver- samod 1 Lime 1 Calcium Chloride 1 MI Bar 1 Ventrol40l/Ecotrol Shale Shakers 1 Desilter 1 Centrifuge Coal sloughing, hole cleaning, drill solids buildup Interval Drilling Fluid Properties III. 12 - 20 4 - 5 cc's 80/20 ~ 15 - 30 i 4591-10379' 9.4 - 10.4 'I · Drill out 7" casing. Maintain mud weight at 9.4 ppg if possible. Mud weights as high 10.4 ppg were encountered on NNA. · Drill ahead, maintain low shear rate values with VG-69, Versamod, and Versa HRP. · Run centrifuge as needed to reduce solids buildup. · Mud weights as high 10.4 ppg were encountered on NNA. Additional data indicates possible kick at 6200'. Consider weighting up prior to 6200'. Consult Unocal office prior to any weight mcrease. · Pump weighted sweeps to aid in hole cleaning. · If sloughing coal becomes a problem, add 2 - 4 ppb of Ventrol 401 to mud system or spot a concentrated pill of20 25 ppb Ventrol40l across coal zone prior to trips. For severe coal sloughing consider raising mud weight. · Run 3 112" casing. · Estimated volume usage is 500 barrels. M-l. L.L.G. 72l West First Avenue Anchorage, Alaska 9950 1 (907) 274-5564 (907) 279-6729 Fax I ~-'''-'-~~'---~''--'--'----'----------'l I 4591' .. 1 79' MD DESIRED PROPERTIES OF CONDITIONED MUD SYSTEM MW. 9.4-10.4 PPG PV 18-28 (Run centrifuge and add base oil-run as low as possible) YP 12-16 CHL. WHOLE MUD 45,000 mg/l (Is dependent salt % and water %) SALT 30. % wt = 247,000 ppm cl ALKALINITY (POM) .1.0 EXCESS LIME (LB/BBL) 1.5 -2.0 % OIL 80-90 % WATER 8-12 % DRILLED SOLIDS Maintain as low as possible OIL RATIO 80-90 WATERRATIO 20-10 ELECTRICAL STABILITY 1250 + HTHP 3-4CC @ 30 MIN& 500 PSI (Use Ecotrol) . Build additional Versapro system using the following formulation: 1. Mapco 200 = .82 bbl 2. IMG 400 = 8 ppb 3. Lime = 2 ppb 4. Verscoat = 6 ppb 5. Versawet = 3 ppb 6. Versamod = 1 ppb 7. Versahrp = lppb 8. Ecotrol = 4 ppb 9. CaCl2-Water = .09 bbl 9. Barite as required M-I. L.£,c. 72l West First Avenue Ancl}orage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax 1000'..10379' MD 8 1/2" and 6 1/8" Hole Recommended LCM Pill Formulas Drilling Fluid / G Seal / SafeCarb Fine, Medium, Coarse / Versa- HRP I Lost Circulation Pill (51 t Losses) ~ ...... 30 '11 1/4 10 10 10 _F "I 'IIIIIIIiIIIIL Lost Circulation Pin (Moderate Losses) ~ 40 15 15 10 112 IIIIIIIII!IIIi 'I !II I 'I .... Lost Circulation Pill (Severe Losses) ~ , .. ~ ÌIII 50 15 20 30 1 III i . Versa HRP should be added last, only after all lost circulation material has been mixed. It Ifpossible, spot pill across theft zone. Apply moderate pressure (50 - 100 psi) to squeeze pill into thief zone. M-L L.L.C. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax 9 5/8" 12 1/4" 1000' 1000 ' Gel/Gelex 8.8-10.0 4 $10500 i 7" 8 112" 4591 ' 4200' VersaPro 9.4-10.4 9 $38625 t 6 1/8" 3 112 " 10379' 9815' VersaPro 9.4-10.4 19 $99875 Com- Mapco 200 pletion 22 $112250 I ~ 1 .. Cuttings Disposal will be an issue. Mud and cuttings should meet all disposal requirements and limitations. OBM cut- tings will require special handling. Keep drill cuttings as dry as possible. II Key Issue 4 M-I. L.L.G. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax .. Run as fine a mesh screens on shakers, mud cleaner, and cen- trifuge if available to reduce the build up of drill solids in the mud. . Maintain mud weights as per program. Increase rheology as required by hole conditions. . Maintain adequate supplies of LCM on location. Use a com- bination of G Seal and Safe Carbo These LCM products are compatible with G&I. Do not exceed 40 ppb . coarse material without confirmation from MWD and Motor representatives. auYJlH)S )NY! anll 1 ....~ ß-@> I . ÐRI - ":!IiI _ au . -/-,-/ -. ,- (" ]IIV1J OJ. .. I13IV1D1S ': r' II3Z11VI'I03 )INV~ 3cW. 113 "3A1Y^ NOu:JfIS ~ :w.J. ÐJ. "3A1Y^ NOJl:)1IS -ã- ()fue.l dIJ,L 8u¡pn:lU ION) . slqq !IE ~. ~ = we¡sAs 811ßO'o' IBIOl. ~ :tMI '1 ¡qq !ì8~ j '.¡: [ / .¡: -Ilea .¡:~ l-.."fJ ~ )( I 0 X.."fJ .. · L-ã .. 5.. ~ 00I~ . ,," n ... · 0 L ~-LL-.;' ~-Æ. 001 c::d5CL-I. .\~). ~ · D # .. 0':: I ~ I ~ HmHS mHS JJ II ~ 7Mœ I · +~. 1 '- X !DÐNV1J M/~ ~1Y^ A"U!I3JJIItI ---@-. IIOJ.V.lIIJ\I om 3:MU. IMJS 110 NOUOOS dlllIS SII1O-N'ßl: )!NY.1 ]!IV NMOHS .LON ~""N^].LW _ 3cW. 3!II1SS3IId IM71 G\ NI10 ann IIOU.OII <J,I ::>IJ.VJ'OOt>s mLLS.AS ŒClN I I Rq 09~ I Iqq 09~ I I .~ / .! / .~ / .."fJ i5 ]5 A ..5'.. . ð ã ã.. ~ "5 ~X "5 ..X "5 ~ d d ~ A ( · "7f ..~ . ~~~ ø~~r .1+' .. .. II3Qf103II ~I!IJ.IŒNOO -0- mmmI'I s.mrw anI! OJ. 311I1 MII"U .1 .. .. . ~,< r" _.1 dIII1 IqqOv I I \" .. .. ~.. IIO.LvtlVd3S !MI ann oK ¡qqOv¡: . d~ I. ¡qq 06~ / ~-~~ SNII/UJII 113M . I _1 11Id ¡qq 09 ~ Iqq otr .~ / l .. ~ d ,. r 1Bl'1lS3Q ... , ~ I·'~ . .,.. · H3ddOH xm ann ~ _.... ~ ~ , I13dclOll xm an" . ..~, -2000 o VERTICAL SECTION VIEW Client: Unocal Well: Field: Structure: Section At: Date: Happy Valley #2 (P3) Kenai Exploration HAPPY VALLEY 307.14 deg May 28, 2003 2000 Hold Angle .-... - .-... (I) ...J JE (f) 0 ~ 0 (I) 0 > 4000 - . N 0 II ..a c:: ro ¢: ......0 -0 .c: . _0 o..¡;:! (1)- Om 6000 16 ~ (.) ..¡...: :e (I) (I) a::: > > (I) (I) ::;¡ W .... ..... 8000 - Angle 9.84° 10000 12000 u I -2000 I 6000 Vertical Section Departure at 307.14 deg from (0.0, 0.0). (1 in = 2000 feet) o 2000 I 4000 PLAN VIEW Client: Unocal 2000 ^ 1500 ^ ^ I I- a:::: o z I 500 I- ::¡ o (/) V V V o -3000 well: Field: Structure: Scale: Date: Happy Valley #2 (P3) Kenai Exploration HAPPY VALLEY 1 in = 500 ft 28-May-2003 -3000 ·2000 o -2500 -2500 -2000 -1500 «< WEST -1500 -1000 -500 500 ~ True North Mag Dec ( E 20.02° 9·518"' cos PI 1000 MO 1000 TVO O,OO~ 305,610 az ON OE ·1000 -500 EAST »> o 500 - 2000 - 1500 -1000 -500 -0 _iþàê _ ...1- .-. ALASKA DRILLING UNOCALi) - Report Date: Client: Field: Structure I Slot: Well: Borehole: UWIIAPI#: Survey Name I Date: Tort I AHD I DDII ERD ratio: Grid Coordinate System: Location Lat/Long: Location Grid N/E Y/X: Grid Convergence Angle: Grid Scale Factor: Station ID KBE 9-5/8" Csg pt KOP Bid 2/100 Bid 4/100 End Bid Drp 0.5/100 Happy Valley #2 Proposed Well Profile - Geodetic Report May 28,2003 Unocal Kenai Exploration - ASP Zone 4 HAPPY VALLEY /HappyValley#2 - b-.I-.t)' Happy Valley #2 Feas. Happy Valley #2 50231 Happy Valley #2 (P3) / May 28, 2003 55.124 ° /2853.94 ft /5.2211 0.291 NAD27 Alaska State Planes, Zone 04, US Feel N 59.98577255, W 151.4847541C N 2189775.038 ftUS, E 228100.433 ftUS -1.28572276° 0.99998414 ~ Survey I DLS Computation Method: Vertical Section Azimuth: S U dy Vertical Section Origin: TVD Reference Datum: TVD Reference Elevation: Sea Bed I Ground Level Elevation: Magnetic Declination: Total Field Strength: Magnetic Dip: Declination Date: Magnetic Declination Model: North Reference: Total Corr Mag North -> True North: Local Coordinates Referenced To: Schlumberger . Minimum Curvature / Lubinski 307.140° N 0.000 ft, E 0.000 ft KB 740.0 ft relative to MSL 718.000 ft relative to MSL 20.016° 55114.626 nT 72.898° June 28, 2003 e BGGM 2002 True North +20.016° Well Head Grid Coordinates Geographic Coordinates MD I Incl I Azim TVD I TVDss I VSec I N/-S I E/·W DLS Northing I Easting Latitude I Longitude (ft) (0) (0) (ft) (ft) (ft) (ft) (ft) (0/100ft) (ftUS) (ftUS) 0.00 0.00 305.61 0.00 -740.00 0.00 0.00 0.00 0.00 2189775.04 228100.43 N 59.98577255 W 151.48475410 1000.00 0.00 305.61 1000.00 260.00 0.00 0.00 0.00 0.00 2189775.04 228100.43 N 59.98577255 W 151.48475410 1100.00 0.00 305.61 1100.00 360.00 0.00 0.00 0.00 0.00 2189775.04 228100.43 N 59.98577255 W 151.48475410 1200.00 2.00 305.61 1199.98 459.98 1.74 1.02 -1.42 2.00 2189776.09 228099.04 N 59.98577534 W 151.48476185 1300.00 6.00 305.61 1299.72 559.72 8.72 5.08 -7.09 4.00 2189780.28 228093.46 N 59.98578644 W 151.48479281 / 1400.00 10.00 305.61 1398.72 658.72 22.63 13.18 -18.40 4.00 2189788.63 228082.33 N 59.98580860 W 151.48485456 1500.00 14.00 305.61 1496.52 756.52 43.41 25.28 -35.30 4.00 2189801.10 228065.71 N 59.98584170 W 151.48494683 1600.00 18.00 305.61 1592.62 852.62 70.95 41.33 -57.71 4.00 2189817.65 228043.67 N 59.98588561 W 151.48506919 1700.00 22.00 305.61 1686.57 946.57 105.14 61.24 -85.51 4.00 2189838.18 228016.32 N 59.98594008 W 151.485_ 1800.00 26.00 305.61 1777.91 1037.91 145.79 84.92 -118.57 4.00 2189862.60 227983.80 N 59.98600486 W 151.485' 1900.00 30.00 305.61 1866.19 1126.19 192.71 112.25 -156.73 4.00 2189890.77 227946.26 N 59.98607963 W 151.48560982 1961.51 32.46 305.61 1918.78 1178.78 224.58 130.81 -182.65 4.00 2189909.91 227920.77 N 59.98613040 W 151.48575135 2892.69 32.46 305.61 2704.47 1964.47 724.18 421.81 -588.98 0.00 2190209.95 227521.08 N 59.98692647 W 151.48796993 2900.00 32.42 305.61 2710.64 1970.64 728.11 424.10 -592.17 0.50 2190212.31 227517.94 N 59.98693273 W 151.48798735 3000.00 31.92 305.65 2795.29 2055.29 781.34 455.12 -635.45 0.50 2190244.29 227475.37 N 59.98701759 W 151.48822367 3100.00 31.42 305.69 2880.39 2140.39 833.83 485.73 -678.10 0.50 2190275.85 227433.41 N 59.98710132 W 151.48845655 3200.00 30.93 305.73 2965.95 2225.95 885.58 515.95 -720.14 0.50 2190307.01 227392.06 N 59.98718399 W 151.48868609 3300.00 30.43 305.77 3051.96 2311.96 936.58 545.76 -761.54 0.50 2190337.74 227351.34 N 59.98726553 W 151.48891215 Happy Valley #2 (P3) report.xls Schlumberger Private Page 1 of 3 5/28/2003-2:51 PM Grid Coordinates Geographic Coordinates Station ID MD I Incl Azim I TVD I TVDss I VSec I N/-5 I EI·W I DLS Northing I Easting Latitude I Longitude (ft) (0) (0) (ft) (ft) (ft) (ft) (ft) (0/100ft) (ftUS) (ftUS) 3400.00 29.93 305.82 3138.41 2398.41 986.83 575.16 -802.31 0.50 2190368.05 227311.24 N 59.98734596 W 151.48913477 3500.00 29.43 305.86 3225.29 2485.29 1036.33 604.14 -842.45 0.50 2190397.92 227271.77 N 59.98742523 W 151.48935395 3600.00 28.93 305.91 3312.60 2572.60 1085.07 632.72 -881.95 0.50 2190427.38 227232.92 N 59.98750341 W 151.48956963 3700.00 28.43 305.95 3400.33 2660.33 1133.04 660.87 -920.80 0.50 2190456.39 227194.71 N 59.98758041 W 151.48978177 3800.00 27.93 306.00 3488.48 2748.48 1180.25 688.61 -959.02 0.50 2190484.98 227157.12 N 59.98765630 W 151.48999046 3900.00 27.43 306.05 3577.04 2837.04 1226.70 715.93 -996.58 0.50 2190513.14 227120.19 N 59.98773103 W 151.49019556 4000.00 26.93 306.10 3666.00 2926.00 1272.36 742.83 -1033.50 0.50 2190540.86 227083.88 N 59.98780461 W 151.49039716 4100.00 26.43 306.16 3755.35 3015.35 1317.26 769.31 -1069.77 0.50 2190568.14 227048.21 N 59.98787704 W 151.49059521 4200.00 25.93 306.21 3845.09 3105.09 1361.37 795.35 -1105.37 0.50 2190594.98 227013.21 N 59.98794827 W 151.49078961 4300.00 25.43 306.27 3935.21 3195.21 1404.70 820.97 -1140.33 0.50 2190621.37 226978.83 N 59.98801835 W 151.490_ 4400.00 24.93 306.33 4025.71 3285.71 1447.24 846.16 -1174.62 0.50 2190647.33 226945.12 N59.98808726 W151.491' - 4500.00 24.43 306.39 4116.57 3376.57 1489.00 870.92 -1208.24 0.50 2190672.83 226912.06 N 59.98815499 W 151.49135133 7" Csg pt 4591.47 23.98 306.45 4200.00 3460.00 1526.49 893.19 -1238.42 0.50 2190695.77 226882.39 N 59.98821590 W 151.49151613 4600.00 23.93 306.46 4207.80 3467.80 1529.96 895.25 -1241.20 0.50 2190697.90 226879.66 N 59.98822154 W 151.49153132 4700.00 23.43 306.53 4299.38 3559.38 1570.12 919.13 -1273.50 0.50 2190722.49 226847.90 N 59.98828686 W 151.49170769 4800.00 22.93 306.60 4391.30 3651.30 1609.49 942.59 -1305.12 0.50 2190746.66 226816.81 N 59.98835103 W 151.49188036 4900.00 22.44 306.67 4483.56 3743.56 1648.06 965.60 -1336.07 0.50 2190770.36 226786.39 N 59.98841397 W 151.49204937 5000.00 21.94 306.75 4576.16 3836.16 1685.82 988.17 -1366.34 0.50 2190793.60 226756.63 N 59.98847570 W 151.49221466 5100.00 21.44 306.83 4669.08 3929.08 1722.77 1010.30 -1395.93 0.50 2190816.39 226727.55 N 59.98853624 W 151.49237625 5200.00 20.94 306.91 4762.32 4022.32 1758.91 1031.98 -1424.85 0.50 2190838.71 226699.12 N 59.98859554 W 151.49253417 5300.00 20.44 307.00 4855.87 4115.87 1794.24 1053.22 -1453.08 0.50 2190860.58 226671.38 N 59.98865364 W 151 .49268833 5400.00 19.94 307.09 4949.73 4209.73 1828.75 1074.01 -1480.63 0.50 2190881.98 226644.30 N 59.98871050 W 151.49283877 5500.00 19.44 307.18 5043.88 4303.88 1862.44 1094.35 -1507.49 0.50 2190902.92 226617.90 N 59.98876614 W 151.49298545 5600.00 18.94 307.28 5138.32 4398.32 1895.32 1114.24 -1533.66 0.50 2190923.39 226592.19 N 59.98882054 W 151.49312836 5700.00 18.44 307.39 5233.05 4493.05 1927.36 1133.67 -1559.15 0.50 2190943.39 226567.14 N 59.98887369 W 151.493. 5800.00 17.94 307.50 5328.05 4588.05 1958.59 1152.66 -1583.93 0.50 2190962.93 226542.79 N 59.98892563 W 151.493 5900.00 17.45 307.62 5423.32 4683.32 1988.98 1171.18 -1608.03 0.50 2190981.98 226519.12 N 59.98897629 W 151.4935 8 6000.00 16.95 307.74 5518.85 4778.85 2018.54 1189.26 -1631.43 0.50 2191000.58 226496.13 N 59.98902574 W 151.49366227 6100.00 16.45 307.87 5614.63 4874.63 2047.27 1206.87 -1654.13 0.50 2191018.70 226473.83 N 59.98907391 W 151.49378623 Target 6189.95 16.00 308.00 5701.00 4961.00 2072.40 1222.32 -1673.95 0.50 2191034.59 226454.36 N 59.98911617 W 151.49389447 6200.00 15.95 308.01 5710.66 4970.66 2075.17 1224.02 -1676.13 0.50 2191036.34 226452.22 N 59.98912082 W 151.49390637 6300.00 15.45 308.13 5806.93 5066.93 2102.23 1240.71 -1697.43 0.50 2191053.50 226431.30 N 59.98916647 W 151.49402269 6400.00 14.95 308.26 5903.43 5163.43 2128.44 1256.92 -1718.04 0.50 2191070.17 226411.06 N 59.98921081 W 151.49413524 6500.00 14.45 308.40 6000.15 5260.15 2153.82 1272.66 -1737.95 0.50 2191086.35 226391.51 N 59.98925386 W 151.49424397 6600.00 13.95 308.54 6097.10 5357.10 2178.35 1287.93 -1757.16 0.50 2191102.05 226372.65 N 59.98929563 W 151.49434888 Schlumberger Private Happy Valley #2 (P3) report.xls Page 2 of 3 5/28/2003-2:51 PM Grid Coordinates Geographic Coordinates Station ID MD I Incl I Azim I TVD I TVDss I VSec I N/·S EI·W DLS Northing Easting Latitude I Longitude (ft) (0) (0) (ft) (ft) (ft) (ft) (ft) (O¡100ft) (ftUS) (ftUS) 6700.00 13.46 308.70 6194.25 5454.25 2202.03 1302.72 -1775.67 0.50 2191117.25 226354.47 N 59.98933608 W 151.49444996 6800.00 12.96 308.87 6291.60 5551.60 2224.87 1317.03 -1793.48 0.50 2191131.95 226336.99 N 59.98937522 W 151.49454722 6900.00 12.46 309.05 6389.15 5649.15 2246.86 1330.86 -1810.59 0.50 2191146.16 226320.19 N 59.98941305 W 151.49464066 7000.00 11.96 309.25 6486.89 5746.89 2267.99 1344.21 -1826.99 0.50 2191159.88 226304.10 N 59.98944957 W 151.49473022 7100.00 11.46 309.46 6584.81 5844.81 2288.28 1357.08 -1842.68 0.50 2191173.10 226288.70 N 59.98948477 W 151.49481591 7200.00 10.96 309.70 6682.90 5942.90 2307.71 1369.47 -1857.67 0.50 2191185.82 226273.99 N 59.98951866 W 151 .49489777 7300.00 10.47 309.95 6781.16 6041.16 2326.28 1381.38 -1871.95 0.50 2191198.05 226259.98 N 59.98955123 W 151.49497575 7400.00 9.97 310.23 6879.57 6139.57 2344.00 1392.81 -1885.52 0.50 2191209.78 226246.67 N 59.98958250 W 151.49504986 End Drp 7425.34 9.84 310.31 6904.54 6164.54 2348.35 1395.63 -1888.85 0.50 2191212.67 226243.41 N 59.98959021 W 151.49506805 TD /3-1/2" Lnr 10379.30 9.84 310.31 9815.00 " 9075.00 2852.58 1722.32 -2273.94 0.00 2191547.92 225865.75 N 59.99048377 W 151.497_4 e Happy Valley #2 (P3) report.xls Schlumberger Private Page 3 of 3 5/28/2003-2:51 PM e Unocal Corporation A P.O. Box 196247 ,., Anchorage, AK 99501 Telephone (907) 263-7660 UNOCALe Larry Buster Drilling Engineer Tuesday, June 17, 2003 Alaska Oil and Gas Conservation Commission 333 West th Avenue Anchorage, Alaska 99501 Attn: Commission Chair Sarah Palin Re: Application for Permit to Drill (Form 10-401) Happy Valley #2 Dear Commissioner Palin, Attached for your approval is an application for permit to drill (Form 10-401) for the Happy Valley #2 Well. ,/ Unocal proposes to utilize a 12" diverter line while drilling the 12-1/4" surface hole. This is the same technique proposed and approved for the Happy Valley #1 Well. Also, the proposed logging program consists of an MWD/GR to the 7" casing point at 4,590' and then an LWD Quad Combo to 6-1/8" TD at 10,379'. The anticipated start date for this well work is July 14, 2003. If you have any questions please contact Mr. Phil Krueger at 263-7628 or myself at 263-7804. / ~ u Larry Buster Drilling Engineer LWB/s Enclosure RECEIVED JUN 1 7 200.3 Alaska Oil & ('nf" C '. ''''''' ,;¡. omm¡SSlOn Anchorage OR\G\NAl . Notice of Public Hearing . STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Union Oil Company of California (UNOCAL) for a spacing exception to allow the drilling and production of the Happy Valley No.2 Gas Development Well. UNOCAL by letter dated June 23, 2003 and received by the Alaska Oil and Gas Conservation Commission (Commission) on June 23, 2003, has requested the Commission to issue an order in conformance with 20 AAC 25.055 allowing the drilling and regular production of the Happy Valley NO.2 Gas Development Well from a location within the same governmental section and within 3000 feet of another well capable of producing from the same pool. The surface location of the proposed well is 1165 feet from the east line and 1234 feet from the south line of Section 22, T2S, R13W Seward Meridian (SM). The proposed bottom hole location is 2956 feet from the south line (FSL) and 3438 feet from the east line (FEL) of Section 22, T2S, R13W, and S.M. The Commission has tentatively set a public hearing on this application for July 29, 2003 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West ih Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on July 11, 2003. If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1230. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West ih Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on July 29, 2003. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Jody Colombie at 793-1230 no later than July 14, 2003. .';J . ~- ;~ Sarah Palin, air ~ Alaska Oil and Gas Conservation Commission Published June 26, 2003 Ad Order No. AO-02314050 FOR INQUIRIES CONTACT LOCATION WHERE INVOICES WERE SUBMITTED 06-10-03 DRILLPERMITHV2 FORM 4-2B181 (REV, 11-95) PRINTED IN U,S,A, DETACH STUB BEFORE DEPOSITING CHECK A Subsidiary of Citicorp ONE PENN'S WAY NEW CASTLE, DE 19720 62-20 311 ALASKA OIL COMMISSION 333 WEST 7 ANCHORAGE,' !l:031548 06-16-03 2006852 10010102 100.00 UNOCALQ; 100: 00'-' 100.00 Union Oil Company of California Accounts Payable Field Disbursing e 100.00 2006852 e And-OO Cents ******************************************* 100 1:0 j I. 1.00 20111: Date 16-JUN.c..03 Check Amount . *******100.00 from above date, D.A. PAGE JUH 1 6 2003 e e TRANSMITAL LETTER CHECK LIST CIRCLE APPROPRIATE LETTERlP ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELLNAME~7 ~ ,JI~ PTD# 20,3... // .3 CHECK WHAT APPLIES ~ Rev: 07/10/02 C\jody\templates ADD-ONS (OPTIONS) MULTI LATERAL (H API number last two (2) digits are between 60-69) "CLUE" The permit is for a new wellbore segment of existing well-, Permit No, API No. Production should continue to· be reported as a function· of the original API number stated above. HOLE In accordance with 20 AAC 25.005(t), all records, data and logs acquired for the pilot hole must be clearly differentiated in both name (name on permit plus PH) and API number (50 70/80) from records, data and logs acquired for well (name on permit). PILOT (PH) SPACING EXCEPTION DRY DITCH SAMPLE The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. (Companv Name) assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. "~LL PERMIT. C~'~~.IST.: Company UNION QIL CO OF CALIFORNIA Well Name: HAPPY VALLEY 2 Program EXP Well bore seg 0 PTD#: 2031130 Field & Pool Initial ClassfType EXP / E_GAS GeoArea 820 Unit 50810 On/Off Shore ~ Annular Disposal ~ Administration 1 p~(IT)itfee attaçhe~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Y~s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 .Leas~.number .appropriate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Y~s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 _U_nlque weILn.arn~.aod oumb_er _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y~s _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 4 WellJocat~d in_a_c:lefine~poo'- _ . . . . . _ . _ . _ _ _ _ . _ . . _ . . . . . . . . . . . . . . . _ _ No_ _ _ . _ . . . . . . . . . . . . _ _ . _ _ _ _ _ _ _ . . . . . . . . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . . . . _ _ _ _ 5 WeJlJocaled pr_oper _distance. from driJling unilb.ound_ary_ . _ _ . _ . . . . . . . . . . . . _ . _ . _ _ No_ . . . . . . . . _ . . _ _ _ _ _ _ _ _ _ . . . . . . . . . . . . . . _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . . . . . . _ _ . 6 WeJlJocaled pr_oper .distance. from other wells_ _ _ . . . . . . . . . _ _ _ _ _ _ _ _ _ _ _ _ _ . _ .. No_. _ _ _ _ _ . _ _ _ _ _ _ _ _ .. ...... _ . _ . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . .. ............. _ _ _ _ . _ _ . 7 .S.uffiçient.açreag.e_ayailable in_dJilIiog unjt .... _ _ _ _ _ _ _ . . . . _ No_ _ _ _ _ . _ . . . . . . . . _ _ _ _ _ _ _ _ _ _ . . _ .. ............ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . . . . _ . _ _ 8 Jf.d~viated, js weJlbore platJncJu_ded _ .. ........ _ . . _ _ _ _ _ _ _ . _ . . . . . . . _ Y~s _ _ _ _ _ _ _ . _ .. ........ _ . _ _ _ _ _ _ _ _ _ _ _ . . _ _ _ _ _ _ . . . . . . . . . . . _ . . _ . . . _ _ _ _ _ _ _ _ . 9 _Operator only: affected party _ _ _ _ _ . _ . . . . . . _ _ _ _ _ _ _ _ _ _ . . . . . . No _ _ _ _ _ _ _ _ _ _ . . . . . . . . . _ _ _ _ _ _ _ . _ _ _ _ _ _ . . _ _ . _ _ .. _...... _ _ _ _ . _ _ . _ . . _ _ _ _ _ _ _ _ _ . 10 _Operator has_appropriate_bond inJorce _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y~s _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 11 P~rmil cao be lssued without co_nserva.tion order. . _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . . . No_ _ _ _ _ _ _ _ _ . . . . . . . . . . . _ _ _ _ _ _ _ _ _ _ _ . _ _ . . _ . . . . . . . . . .. _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . Appr Date 12 P~rmil cao be lssued wjthout administratille.apprpvaJ _ _ _ . . _ . . . . . . _ _ _ _ _Y~s . _ . . . . . . . _ _ . _ _ _ _ _ _ . _ _ _ . . _ . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . . . . . . _ _ _ _ RPC 6/24/2003 13 Can permit be approved before 15-day wait Yes Unocal hopes to spud this well, very shortly. A spacing exception is needed, due to proximity of the HV#1 of I 14 WellJocat~d within area alld_strata _authorized by.lojectioo Ord~r # (pullOtJ in.cpmrn~nts) (For_ _NA _ _ _ _ _ _ . alld.bothwells will be produ_ctiv_e JromJhe_ same .gov. .section. The permit sho.utd_be _apprOlled,_ wilh _the_siipulat. _ _ .. 15 AJI w~lJs_withiJUl4_roite_area_of reyiew id~nUfied (For sejVjc'!:!.w.etl only:" _ _ _ _ _ _ _ _ _ _ _ . _ _ _NA _ _ _ _ _ _ _lhatUnocaJis.drillingJhe well_aitheir OWll risJ<_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ .. 16 Pre-produçec:linjeçtor; ~ur.ati(m_ofpre-pro~uctionl~ssthaIl3months_(For_ser:vtceweltonJy).. .NA _ _ _ _ _ _ _ _ _ _ . _ _. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _... _...... _.. _.. _ _ _.. _ _ _ _ _ _ _ _ _ _.. 17 .ACMPF:illding.ofConßißteocy_h_as beenJssued_forJhis pr_olect. . . . . _ _ _ _ _ _ _ _ _NA . . . . . . . _ . . _ _ _ _ _ _ _ _ _ _ . . . . . . . . . . . . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . . . . . . _ _ _ _ _ 18 _C.onduçtor strillg.PJovided _ _ _ _ . . . . . . _ . . _ _ _ _ _ _ _ . . . . . . . . . . . . _ . _ _ _Y~s _ _ . . . . . . . _ . _ _ _ _ _ _ . _ . . . . . . . . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . . _ . _ _ _ 19 .S.urfaee.casing.pJotects alLknowll USDWs . _ _ _ _ _ _ _ _ _ _ . . _ . . . _ _ _ _ Y~s _ . . . . . . . . . . _ _ _ _ _ _ _ _ _ _ . . . . . . . . . . . . . . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . _ . . . . . . . _ _ _ _ _ 20 .CMT v.ot adeQuateJo çirc.utate.o.ncond.uctor_ & su_rf_Cßg _ _ . . . . . _ . . _ _ _ _ _ . _ _ _ _ _ _ Y~s . . . _ ';de~uate excess. . _ . . . . . . _ . _ . _ _ _ _ _ . . _ _ _ _ _ _ _ _ . . . . _ _ _ _ _ _ _ _ _ _ _ _ . 21 _CMTv.otadeQu.ateJotie-tnJong_stringto_sudcsg_ _ _ _ _ _ _ _ _. _. _ _ _ _ _ _ No_ _ _. .... _ _. _ _ _ _ _ _... ... _ _ _ _ _ _ _ _ _ _ _.. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _... _ _ __ 22CMTwill coyer_all J<nownpro~uçtiYe hOrilolls_ _ _ _ _ _ _ . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . Y~s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ . . . . _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ . . _ _ _ _ . . . . . . _ _ _ _ _ _ _ _ _ _ _ _ _ . . 23 .C_asing designs ac:lequa_te for C,.T, B_&_permafrpst _ _ _ . _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ . . _ . . .Y~s . _ _ _ _ _ _ _ _ _ _ . . . . _ _ _ . . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ . . . . . _ . _ _ _ _ _ _ _ _ _ _ . 24 _MequateJanJ<age_oJ re_ser:ve pit. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . _ _ _ . . _ _ _ _ _ _ _ _ _ _ _Y~s _ _ _ _ _ . . l\Iab.ors_ 1.29._ _ _ _ _ _ _ _ . _ . _ _ _ _ _ _ _ _ _ _ _ _. .. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . _ . _ _ _ _ 25 Jf.aJe-~rilL has_a. to-40;3 for abandollme_nt be~n apPJoved . _ _ _ _ _ _ _ _ _ _ _ NA _ _ _ _ _ _ _ _ . . . . _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ . . . _ _ . . _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ 26 A~equate.w:ellbore. separatio_n_proposed _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y~s _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 27 Jf.div~rterJeq_uired, does Mneet reguJations_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ No_ _ _ _ _ _ _ _ Waiyer_requestec:l for t2~' vent jn~.w:ith .:I2-1/~'~ welLbore. _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 28 _DJiUing flujd_prog.ram schematic & eQ.uipJistadequale_ _ . . . . . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . Y~s _ _ _ _ _ _ _ Max MW.10A.ppg._ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ . 29 _BOPEs,_ d.o .they meet reguJation . _ _ _ _ . _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ . _ . . . . . _ y ~s _ _ _ _ _ . _ _ _ . . . . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 30 _BOPEpre.ssraiingappfopriate;testlo(puJpsigin_comments).... _ _ _ _ _ _ _ _. _ _ _ _ _. Y~s _ _ _. _ _Testtp_50QO_psLMSI'3765psi.. _. _ _ _. _ _ _ _. _ _ _ _ _ _ _ _ _ _ _. _ ..... _ _ _ _ _ _ _ _ _ _ __ 31 _C_hokeroanifold compJies w/APLRP-53 (May 134)_ _ _ _ _ _ . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . Y~s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ . _ _ _ _ _ _ _ _ _ _ 32 Work will occ_ur withoutoperationshutdown_ _ _ _ _ _ _ _ _ _ . . . . . . . _ _ _ _ _ _ _ _ _ _ _ . Y~s _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ . . _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . _ . _ _ . . _ . _ _ _ _ _ _ _ _ _ _ _ . 33 Js presence_of H2S gas_probable. _ . _ _ _ _ _ _ _ _ _ _ _ _ . . . _ _ _ _ _ _ _ _ _ _ _ _ _. No_ _ _ _ _ _ _ _ _ _ _ . _ . _ _ _ _ _ _ _ . . . _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . . . _ . . . _ _ _ _ _ _ _ _ _ _ _ _ _ 34 Meçha_nicaLcondiUon of wells wlthin ';OR yertfiec:l (For_s_erviee w~1J onJy) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _NA _ _ _ _ . . . _ . _ _ _ _ _ _ _ _ _ _ . _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . . . _ _ . 35 P~(IT)it c_an be lssued wlo_ hydrogen_ sutfide meas_ures _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ Y~s _ _ _ _ . . . . . . _ _ _ _ . _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . 36 _D_ata_pJeseoted on_ pote_ntial oveJpressur~ _zooes _ _ _ _ _ _ . . _ _ _ _ _ _ _ . _ _ _ _ _ Y~s _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ . . _ _ . . _ _ _ _ _ _ _ _ _ _ _ 37 _S~ismic_analysjs_ of shaJlow gas_zones_ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ .. _ _ _ . . No_ _ _ _ _ _ _. . _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . . _ _ _ _ _ _ _ _ _ . _ _ . _ _ _ _ _ _ _ _ _ _ _ _ . . 38 _S~abedcooditioo survey _(if off-shore) _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . _ _ _ _ _ _ _ _ _ _ _ _ _ . .NA _ _ _ _ _ _ _ _ _ _ _ _ _ . . . _ . _ _ _ _ . _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . _ _ . . . . _ . _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ 39 _ Conta_ctoamelpholleJor_weekly progress reports [e1Cploratory _only). _ _ _ _ . . _ _ _ _ _Y~s _ _ . LaJry _Buster_2ß3-7SQ4_ . _ _ _ _ _ _ . . . _ _ . _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ . . . . . _ _ Engineering Appr Date WGA 6/24/2003 Geology Appr Date RPC 6/24/2003 Geologic Commissioner: Díe] e Date: 06 ) <..J}O,] Engineering Commissioner: Public )¡::¡..::..-; Commissionef-J P':"-:.;- ~ .. . __ ~. .""," V/~J7d~ Date ~ ~ :ß