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Home My WebLink About204-044 e e Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. :¿ 0 ~ - 0 lJLt Well History File Identifier Page Count from Scanned File: I ~<3 (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: V YES ~ Date 7 /¡ß/ofo If NO in stage 1, page(s) discrepancies were found: YES Organizing (done) D Two-sided 111111/111111111111 RE~AN \z('Color Items: D Greyscale Items: DIGITAL DATA D Diskettes, No. D Other, NolType: D Poor Quality Originals: D Other: NOTES: Date 7 JIIfJ/D (, I { Date 7 f¡g/ofo I I S x30= ¡50 Date: <% 0 BY: ~ Project Proofing BY: ~ Scanning Preparation BY: Production Scanning Stage 1 BY: Stage 1 BY: Maria Date: Scanning is complete at this point unless rescanning is required. D Rescan Needed 1111111111111111111 OVERSIZED (Scannable) D Maps: o Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ~9S of various kinds: D Other:: mf 151 IIIIIIIIIIII~ 11111 151 mf + L = TOTAL PAGES I S 7 ~ (Count does not include cover sheet) íf\A 151 Y r , 11111111111I11 111/1 NO 151 VVl P NO 151 11I11111111I111111I ReScanned BY: Maria Date: 151 Comments about this file: 11111111111I111111I Quality Checked 1111111111111111111 10/6/2005 Well History File Cover Page. doc ~ • ~~~-~.. MIDROFILMED 03/01/2008 DO NOT PLACE ~~ . ~~... ANY NEW MATERIAL UNDER THIS PAGE F:\LaserFiche\CvrPgs_InsertslMicrofilm_Ma~ker.doc Chevron . Debra Oudean Technologist .on Oil Company of California W. 9th Avenue Anchorage, AK 99501 Tele: 9072637889 Fax: 907 263 7828 E-mail: oudeand@chevron.com RECEIVED July 5, 2006 JUL 0 6 jUt) Alaska Oîî & Gas Cons. G"inmission Anchüfage To: AOGCC Howard Okland 333 W. 7th Ave. Ste#100 Anchorage, AK 99501 -HAPPY VALLEY 6 CD Containing the following data: Combined1.PDS to....:,k '-~... ~<-\...Q..1:- PSP _006PUP.las 4.š<t',- /llfl\o SCMT_PSP _006PUP.las >,} 7) - 11"20-\ Combined.PDS c \1 c... HV6_Quad_FINAL_LAS.las '('f- 1186;- RST HV6.PDF .~ RST HV6.PDS SCMT_RST_PSP _029PUP.I~s '>-Å~\D.- Uê.) ~ f} vtt4Ó St:;A,NNED SEP 2. 6 "DUB ledge receipt by signing and returning one copy of this transmittal or FAX to 907 263 7828. Date: ~ ~"t-6'-1'i Happy Valley A-6 . . Debra, Open hole reproduceable and digital data was not submitted for Happy Valley A-6 (API 50-231-20019-00 ) Please submit open hole reproduceables or graphics files ( .pdf or .pds preferred ). and Please submit open hole digital log data ( LIS, DLlS, or LAS O. TNX Howard 1 of 1 6/28/2006 2:59 PM ) )- J~~ DATA SUBMITTAL COMPLIANCE REPORT 6/26/2006 Permit to Drill 2040440 Well Name/No. HAPPY VALLEY A-6 Operator UNION OIL CO OF CALIFORNIA .> f uJ:1 7/3.p ^'o Ú Cf API No. 50-231-20019-00-00 MD 11798 r TVD 10400 /' Completion Date 6/15/2004 " Completion Status 1-GAS Current Status 1-GAS UIC N REQUIRED INFORMATION Mud Log No Samples No 12670 Completion ~ ðM Directional Survey Yes (data taken from Logs Portion of Master Well Data Maint . Interval OH/ Start Stop CH Received Comments 8/9/2004 71 11798 Open 8/9/2004 Part of Epoch EOW report 71 11798 Open 8/9/2004 UnoCal "Custom View" Part of Epoch EOW report 71 11798 Open 8/9/2004 UnoCal "Custom View" Part of Epoch EOW report 71 11798 Open 8/9/2004 Drilling Dynamics Log Part i of Epoch EOW report 0 0 8/9/2004 Epoch EOW report in Digital Form 100 11795 Open 6/9/2004 GR,NEUTRON POROSITY, DENSITY, SONIC, QUAD COMBO 100 10397 6/9/2004 GR, NEUTRON . POROSITY, DENSITY, SONIC, QUAD COMBO 9600 11605 Case 8/27/2004 COMPLETION RECORD, 2.5" HSD PJ 3SPF 9600 11605 Case 8/27/2004 COMPLETION RECORD, 2.5" HSD PJ 3SPF DATA INFORMATION Types Electric or Other Logs Run: Quad Combo, RST, SCMT Well Log Information: Log/ Electr Data Digital Dataset Type Med/Frmt Number Name t Report: Final Well R ~ Mud Log I" Mud Log ~g Mud Log i I~ See Notes ~c Las 12620 Report: Final Well R Log' Induction/Resistivity Log Log Run Scale Media No 2 Col 2 Col 2 Col 2 Col 2/r Blu Induction/Resistivity 2/~ Blu C Pds 12670 Completion Well Cores/Samples Information: Name Interval Start Stop Sent Received Sample Set Number Comments DATA SUBMITTAL COMPLIANCE REPORT 6/26/2006 Permit to Drill 2040440 Well Name/No. HAPPY VALLEY A-6 MD 11798 TVD 10400 Completion Date 6/15/2004 ADDITIONAL INFORMATION Well Cored? Y ~ Chips Received? Y'Not--' Analysis .::t.../...ÞY Received? (¡ Operator UNION OIL CO OF CALIFORNIA API No. 50-231-20019-00-00 Completion Status 1-GAS ~ / ~" J- L Current Status 1-GAS UIC N Daily History Received? ~/N 'WN Formation Tops Comments: .t t'W\.ct..i{k~ ~kJ 0 1-( ~ I Compliance Reviewed By: Date: ~ ~ ~~~ ~ . . State Base Plains Coordinates for HV-03, HV-04 and HV-06 e e Bob- Here are the coordinates as you requested. HV-03 Surface: 1,277' FSL, 1,294' FEL, See 22, T2S, R13W, SM TPI: 1,263' FNL, 2,073' FEL, See 22, T2S, R13W, SM TD: 1,160' FNL, 2,198' FEL, See 22, T2S, R 13W, SM HV-04 Surface: 1,270' FSL, 1,297' FEL, See 22, T2S, R13W, SM TPI: 1,832' FSL, 673' FEL, See 22, T2S, R13W, SM TD: 2,076' FSL, 366' FEL, See 22, T2S, R13W, SM HV-06 Surface: 1,088' FSL, 1,363' FEL, See 22, T2S, R13W, SM TPI: 2,015' FNL, 401' FWL, Sec 27, T2S, R13W, SM TD: 2,009' FNL, 258' FWL, Sec 27, T2S, R13W, SM Let me know if you need anything else. Diane Diane Dunham, Unocal Alaska 909 W. 9th Avenue, Anchorage, AK 99501 tel. 907-263-7604, fax 907-263-7884 1 of 1 9/27/20043:21 PM Location: X=227,900.113 E, Y=2,189,634.214 La!: 590 59' 07.350" N, Long: 151029' 08.989" W 1088'FSL, 1363'FEL,Sec22,T2S, R13VV,S.M. PBTD-11,731' TD - 11,798' HV-6 Actual Schematic UNOCAL8 RKB = 22.5' AGL GL = 716' MSL RKB elevation = 738.5' MSL Happy Valley #6, Kenai Peninsula Conductor: 16",0.50" w.t., 60 ksi butt welded, drilled and cemented to 67' RKB, wI h",,,.. nl",t.. Surface Casing: 9%",47 ppf, L-80, BTC casing 0' - 1063' Cemented with 55 bbl of 12.8 ppg lead and 24 bbl of 15.8 ppg tail cement NO. DEPTH JEVVELRY DESCRIPTION 1. 5539' - 3%" x 7" Hydraulic Set ZXP packer. 2' of 4" OD seals in 15' Seal Bore. Flexlock Hanger. 2. 2549' - chemical injection nipple 2.887" ID (drift) with dual check valves y." OD, 0.049" wall SS chemical injection line Intermediate Casing: 7", 26 ppf, L-80, BTC-Mod Casing 0' - 5753' MD Cemented with 76 bbl of 12.8 ppg lead and 17 bbl of 15.8 ppg tail cement Tubing: 3%", 9.2 ppf, L-80, IBTC AB-Mod casing 0' - 5593' MD 2' of 4" OD seals stung into 15' seal-bore. Seals were spaced out 2' high from locator. Perfs T-120: 10,854'-10,882' MD (9469'-9496' TVD), 3 spf, 120-deg phase, 6/15/2004 Production Liner: 3%", 9.2 ppf, L-80, IBTC AB-Mod casing 5558' - 11,796' MD Cemented with 184 bbl of 12.0 ppg LiteCrete cement REVISED: June 16, 2004 CotflENTfAL Revised By: JGE e e 4/3/04 Continue move rig off HV # 3 Pull all hydraulics, power and service lines between modules. The Derrick is laid down and 75% of modules have been set aside. 25% of white iron is set aside. AS of midnight 3/4 of white iron still on HV # 3, Koomey unit, Choke skid, HP unit and mud pump unit. Cost for day high due to capture of well cellar and surface conductor cost 4/4/04 Lower Sub Base, Pin Rams TIDerrick Layover derrick, raise & pin derrick board. Call Jackinsky to grade sand on HV#6 location again. Had them sand road and pad getting slick Remove choke house, Koomey Room from sub and load #2 mud pump on trailer. Remove utility buildings FI white iron, remove from white iron and split Peak crew starts rolling out Geo and pit liner Remove derrick from sub base and set onto trailer Remove sub base from white iron, remove all sub base white iron from mats Clean some OBM from white iron Pull mats, Start setting mats and white iron Peak crew starts pulling up pit liner and geo textile from HV 345 pad Set sub and side white iron Stab derrick set white iron for pits set all buildings on first two white iron, raise derrick and floor set power modules 4/5/04 set both hpu units, white iron 5 & 6, set generator buildings, boiler room, parts house, choke skid, Koomey room, & install out riggers on sub set shaker room, ODS dog house, degasser, start rig up landings and stairs Peak spot coil tank & Bariod start mixing mud hang wind walls, work on pump room, Schlumberger and ASRC raise cement tanks rig up hydraulic lines, work on pits start pulling elec. Wire 4/6/04 Peak working on yard, Hook up HPU, work on flow lines to pits, working on service lines Trouble shoot problem with PLC's,Raise derrick and work on rig up, Work on H.V. 3,4,5, Cellar and fit gratting. Work on burm's Strap 9 5/8 casing. Continue rigging up rig. Change shaker screens transfere pre - made mud from coil tank to active pits Center sub on well, Set pipe rack hang beaver slide Continue rig up. Build up burms, Rig up floor install dump chuts under shakers, cent. Pull Rotary table T/lnstall flow nipple & flow line. Set burm around rig 4m04 Nipple up Flow nipple and continue trouble shoot weight indicator problem. Surface equipment check and function test pump, #1 pump cap gasket leak, #2 pump would not function, check all low press urea lines and circ surface system, Continue cleaning and housekeeping and rigging up. P/U 17 1/2 bha break out lead collar and UD while working on Weight indicator and #1 & #2 pumps P/U BHA While making up 8" BHA break out tong head broke, (no back on location) Continue trouble shooting weight indicator. & # 2 pump problems While waiting on Unocal '5 tongs to replace rig tongs P/U Unocal SDD Tongs to make up 8" BHA Pre-spud safety & expectation meeting Stage up GPM500 gpm & condition mud tag firm @ 77' r Drill wI low parameters f/77-126' II clear BHA f/16" (f/77' 1187' 7-10 fph hard wI clay & rock returns) 87' 11126' (clay & gravel returns 50-60 fph) bha clear up parameters & drill f/126' - TI 271' 194' APIG 48.5 per hour Pull out off hole 3 Stands P/U 5" hwdp Run in hole. Change #1 shaker T/50/50/38 Drill F 1271' - T /517' 246' APIG 164 per hr. 150 RPM 575 GPM 10-15 WOB 4/8/04 Drill 12-1/4" hole F 1517' - T 11075' & TD hole section APIG 79.7 3.4hrs. ADT 164' hr. Circ. B.U. Drop Carbide for hole gauge & Circ. & Clean (Carbide 1.2 bbls more than cal.) Stright pull ooh slow w/ some overpulls & attmenting to swab would brk back & pull thru (ok) Udn one 5" HWDP & top stab in 16" (ok) Middle stab hung 16" shoe & work by same Udn Bha P/up 17-1/2" assy & brk dn same Rldn Hyd elevators & SDD tongs r/up bail extendsion & WATCO casers PJSM wI all hands P/up & run 9- 5/8" csg & fill pipe. Took weight @ 1032' M/up circ swedge & Hoses Wash 9-518" csg dn & clean out fill f/1032' 111070' 4/9/04 Wash T 11073' UD Circ. Jt # 26, P/U Hanger and Landing Jt, Space out and land hanger, circ and condition while setting hanger down during recipacation hanger hung in landing ring pulled 20k over with no movement let set in landing ring. RlU Cement manifold, PJSM Cement Job; Pumped 6bbls water, Press test lines T/3,000psi., Pumped 50bbls Mud Push 10.5ppg., 55bbls lead cmt 12.8ppg.24bbls tail 15.8 ppg., Drop plug, 5bbls water, Displace 69.8bbls mud bumped plug, Cement in place at 04:00 Press up to 2500psi. Hold F/30min. Loss of press in 30min 48psi. Check floats ok, Blow down lines, RID cement, Clear floor RlU and Run gyro UD landing jt., Weatherford Equip, Long bails and clean floor RID Rizer Equip. Camaron inspect hanger, hanger set in place Make up MBS Test T/5,000psi. Nipple Up 11" BOPE'S R/U rig floor 4/10/04 Rig up tongs R/U & T I Test Multiple leaks STOP and had crew tighten all flanges again gland packing, test plug leaked changed seal Test Bope : Test hydril 250/3500psi., Test top rams, Choke manifold,kill and choke valves, Top drive valves ,floor valves,Test koomey 250/4500psi. Pull test jt test blind rams, P/U 7" test assmbly and test bottom rams UD test jt Install wear CONFIDENTIAL -- HV-06_AOGCC10-407Summary_AFE162171HV-06_AOGCC10-407Summary_AFE162171, last revised 9/22/2004, page 1 e e ring. Work on Rig torq tube alighnment. P/U 8 1/2" BHA, Rig service Tag Cement @ 996' Drill float equipment and shoe, 20' new hole 1,095' Circ. & Condition Mud for LOT MW. 9 ppg. Pull to shoe, Perform leak off test, EMW 13.1, Drill 10' Circ. & Condition Perform second leak off test # 2 EMW 13.1 ppg. Held safety meeting with all personal talked about new kick tolerances and the need to stay alert. Drilling F 11105' T 11439' APIG 121 ft per hr. ART 1.4,AST .4, ADT 1.8 = 185' per hour 4/11/04 Drilling ahead F 11439' - T 12124' APIG=116.4.hr. Drilling ahead F 12124' - T 13039' APIG=93.5 hr. Trouble sliding, add lubricant. @ 2980' Drilling ahead F 12124' - T 13,427' APIG= 87.1.hr. ADT=12.2HRS AST=5.3 ART=6.9 DRILLING FOOTAGE 1988' ROP 163' OFF BTM CIRC. 9.8 Total circ. Time 22 hrs 4/12/04 Drilling ahead F 13427' - T 15102' APIG=79 .hr. Having Trouble maintaining angle Bha Dropping .3 deg per 100' ADT=11.4 HRS AST=4.2 ART=7.2 DRILLING FOOTAGE 1988' ROP 163' OFF BTM CIRC. 10.3 Total circ. Time 21.7 hrs 4/13/04 Drill Ahead F/5102' - T 5130' APIG = 78.73 FT 51.5 HRS: Unable to slide to control dropping angle in hole. CBU Pump out of the hole to shoe. Lots of sand returns on shakers during pumping out operations POH, work BHA, break off bit Break MWD lock sub ( threads galled) pull MWD spear, change out lock sub and XO Install MWD spear, orient MWD and motor, RIH to 1063' fill pipe Cut 76' Drilling line and service rig RIH slow to avoid surging 50 -65 FPM, break circulation at 3200', RIH to 4973' Ream 4973' to bottom at 5130', stage pump rate up while reaming from 250 GPM to Drilling rate 500 + GPM NOTE: Centrifuged mud in pits and cleaned sand trap during trip Tight spots on trip out 4995',4632',4548',4521',4455',4440',4398', 3463',3335',3294',2956',2336', 10 -30K overpulls Some bobbles on trip in nothing worth noting. 4/14/04 Drill and survey 5130' to 5348', slide 5348' to 5365' #1 HPU unit caught on fire pull off btm"put out fire with extingushers while shutting down rig with ESD. Fire contained start circ. Pump with electric pump and monitor well while damaged is being asessed, and mess being cleaned up Pre-job meeting, start # 2 HPU and check for leaks Drill 5365' to 5725' with pump rate of 440-460 GPM all hydraulic functions slow including pipe movements due to only one HPU on line CBU for sample to determine casing TD point. Swivel packing leaking Set back one stand and change out swivel packing Pick up stand and drill 5725' to 5760' CBU for sample to determine casing TD point. TD called at 5760'. HPU #1 back on line at 21 :30 hrs Circulate carbide around for cement calculation 5% washout calculated in open hole Pump out of hole Rotary Drill 5130' to 5348' Slide 5610' to 5633' 150L (ACT 17 Hrs AST 4.7 Hrs ART 4.7 hrs ) Slide 5348' to 5365 160L Rotary Drill 5633' to 5675' Rotary Drill 5365' to 5415' Slide 5675' to 5682' 150L Slide 5415' to 5449' 160L Rotary Drill 5682' to 5735' Rotary Drill 5449' to 5475' Slide 5735' to 5750' 150L Slide 5475' to 5482' 160L Rotary Drill 5750' to 5760' Rotary Drill 5482' to 5538' Slide 5538' to 5571' 160L Rotary Drill 5571' to 5610' 4/15/04 Pump out of hole to 5060' grabber broke on TD Work on Grabber POH to 9 518" shoe, Straight pull out on trip tank no problems, hole taking correct fill Monitor well on trip tank loss rate 2.4 BPH Stand back 4" HWDP, lay down all other BHA componets Pull wear bushing Pull apart Top Drive Grabber for repair Rig up to pick up 7" 26# casing Pick up shoe track, check floats ( OK ) pick up 7" 26# casing filling on every joint and topping off every 10 joints to 2863' Break circulation slowly stage up pump to 4 BPM. CBU Pick up 7" 26# to 5728' pick up hangar joint and landing joint with circulating swedge circulate down and land hangar, shoe depth 5753', pick hangar off seat Circulate and condition mud, worked rate up tp 4.5 BPM unable to reciprocate pipe with 70K overpull, land hangar, hole taking 10 BPH while circulating Break off circulating swedge and install cement head, hook up lines, Pre-job safety and operations meeting, Dowell pump 3 bbls water ahead and pressure test lines to 4500 psi Pump 40 bbls 10.5 ppg mud push with rig pumps at 4.5 BPM, Dowell pump 76 bbls 12.8 PPG Lead slurry followed by 47 bbls 15.8 ppg Tail slurry at 4.8 BPM, shut down and drop wiper plug, pump 5 bbls water ( Indicator did not flag) start displacement with rig pumps at 4.7 BPM 4/16/04 Chase cement at 5 BPM last rate and pressure at 5 BPM 1550 psi, slowed to 2 BPM at 206 bbls pumped, plug bumped at 209 bbls away, took 1.7 bbls to pressure up to 4K, hold pressure for 30 minutes no bleed off, bleed off pressure floats holding 3.5 barrels back Drain stack lay down landing joint, lay down bail links, clear floor Pick up and RIH with 2 stands 4" HWDP, make up pack-off running tool and pack-off, land in bowl with 3rd stand of HWDP, verify landed by visual inspection through wellhead port., test pack-off to 5000 psi, test good. Stand back 4" HWDP and lay down pack-off running tool Pick up test joint, set test plug, fill stack Test BOP and related equipment to 250 psi low and 4500 psi high. Test annular to 250 psi low and 3500 psi High, lay down test joint. Cleaning Pits while testing Pick up mud motor, bit, stabilizer, MWD and orient same, pick up jars and RIH with 4" HWDP ( Cleaning pits) RIH , filled pipe at 2500' with WBM, RIH to 5597', fill pipe with WBM and wash down to 5656', ran out ofWBM. Filling pits with OBM while tripping Prep rig floor for OBM while taking on OBM in pits and mixing spacer pill. Pre-job meeting on change over to OBM Pump 11 ppg high vis spacer and chage well over to OBM Drill cement, CONFIDENTIAL -- HV-06_AOGCC10-407Summary_AFE162171 HV-06_AOGCC10-407Summary_A FE162171, last revised 9/22/2004, page 2 e e float equipment and 22' of new hole to 5782'. Pumping at 180 gpm, rotary 30 rpm, cement drilled at 250-400 FPH Circulate well clean at 6.5 BPM while rotating and reciprocating pipe. Mud wt 9.0 PPG ADT .2 Hrs 4/17/04 Perform LOT, formation did not break at 2912 psi 19.84 MWE 1.03 psilft gradient Drill 5782' to 6981' 104.2 FPH Pipe in Ground. ART 5.1 hrs AST 2.9 hrs ADT 8 hrs Drill 6981' to 8050' 89.0 FPH Pipe in Ground ART 5.2 hrs AST 2.3 hrs ADT 7.5 hrs For the Day 97.0 FPH Pipe in Ground ART 10.3 hrs AST 5.2 hrs ADT 15.5 hrs 4/18/04 Drill 8050' to 9001' ART 4.9 hrs AST 2.8 hrs ADT 7.7 hrs Pipe in Ground 79.25 FPH Drill 9001' to 9621' ART 6.7 hrs AST 1.2 hrs ADT 7.9 hrs Pipe in Ground 51.66 FPH For the Day ART 11.6 hrs AST 4 hrs ADT 15.6 hrs Pipe in Ground 65.5 FPH 4/19/04 Drill 9621' to 10001 ' Pipe in ground 76 FPH Lubricate rig Drill 10001' to 10409' Pipe in Ground 62.76 FPH Drill 10409' to 10516' Pipe in Ground 19.45 FPH Swivel packing leaking, set back stand, change out swivel packing Drill 10516' to 10661' Pipe in Ground 25.36 FPH ART 17 hrs AST 0 hrs ADT 17 hrs 4/20104 Drill 10661' to 11021' ADT 9.7 Hrs, Pipe in Ground 30 FPH Drill 11021' to 11260' ADT 10.7 Hrs, Pipe in Ground 20 FPH Total ADT 20.4 Hrs, Pipe in Ground 50 FPH Note: Increase mud weight to 9.3 to reduce connection gas. 4/21/04 Drill F/11260' - T/11333' ADT 3 HRS Total pipe in ground 24.3 FPR Lubricate Rig Drill F/11333' - T/11540' ADT 6.8 HRS Total pipe in ground 30.4 FPR Drill F/11540' - T/11777' ADT 10.4 HRS Total pipe in ground 22.9 FPR For the Day ADT 20.2 Hrs Total pipe in ground 25 FPH 4/22/04 Drill F/11777' - T/11798' TVD 10400' ADT 1.5, TD Well @ 01 :30 Conditon Mud & Circulate B/U, While changing swab and liner in pump #2. (Put pump # 2 online) Short trip F/11798' - TI 8800' UIWT = 180k DIWT = 115k. One 10 - 15 K overpull at 11432'. Had no other problems pulling pipe. Short trip FI 8800' - T/11798' Circulate bottoms up, 500 + units trip gas, Pump nut plug flag around to measure lag, nut plug returns to surface indicates gauge hole. Pump Dry job. POH, tight at 11429' 25K overpull, work through until clear, POH to 8059' tight, unable to work through, make up TD and circulate, unable to rotate pipe, work through tight spot hole packing off, work through until clear, still unable to rotate or break off TD. Trouble shoot TD problems, appears to be in the drive shafts. Break off TD from string with Rig tongs. POH to shoe. Monitor well, diagnose TD problems, pump Dry job POH to BHA. Lay down smart iron clear, and clean floor. Rig up wireline. 4/23/04 Pre-job Safety and operation meeting Rig up Reeve's wireline RIH with Quad Combo, set down at 11350' work up and down for .5 hrs get past bridge, RIH tag bottom at 11798', POH logging to shoe at 5753', Logged from shoe to surface GRI Neutron. Lay down Logging tools Lay down 4" HWDP from Derrick vacuuming out OBM Clear and clean floor Rig up to run liner, PJSM Pick up cement head and make up on single of HWDP and lay down same Pick up Float track, Bakerlocking same, check floats Pick up 3 1/2" 9.2# liner assembly RIH too 5358' Ran 76 Centralizers 4/24/04 Pick up 3 1/2" 9.2# liner assembly RIH 5753' Ran 76 Centralizers. M/U Baker 3 1/2", 9.2# x 7" 26#, L-80, ZXP Liner Top Packer with HR tool profiles. Mix "Pal Mix" and fill to top of Liner Tieback sleeve. RID Weatherford Equip, Change Elev, R/U Rig Tong. RIH with one stand of drill pipe, Break Circulation to assure flow paths are free to circulate. RIH slow with 4" DP & Liner Assembly, Filling pipe every 10 STDS. (T/9000') P/U Cement Head for kelly and continue to washdown, 2 BbllMin 700 psi.Tag BTM @ 11798'. Condition mud & CIRC, while making up lines from rig floor to cement unit. (1500 units max gas). Drop 1 7/16" ball, pump ball to seat 800 Stks. P/U on 3 1/2" Liner, put Liner in tension (2 ftI off bottom float shoe @ 11796'). Pressure up to 1800 Psi down drill string. Set Hydraulic Flexlock Liner Hanger (Top of ZXP Liner @ 5538') . Set down 10,000# to ensure hanger is set. Pressure to 3,000 PSI to release the running tool from the Liner Hanger. Shear ball with 3,800 PSI. Pressure test cement lines to 5,000 PSI, Pump 50 bbls 10.5 Mudpush XL. Followed by 184 bbls of 12.0 LiteCrete, Cement volumes are based on 20% excess. Drop wiper dart(flag gone) and displace with 7.4# diesel base oil. Slow pump 2-3 bpm, Bump with 3500 psi. (Landing coller@ 11731') Bleed press got back 2 bbls check floats. Apply 1000 psi in drill pipe, pulled out of packoff drill pipe pressure droped to 700 psi. pressure tested liner assembly 2500 psi at 2 bbls, 3000 psi 2.5 bbls, and 3500 psi at 3 bbls. Held 3500 psi for 5 min. test good. Displace annulas with 7.4# base oil.(Seen mud push and small amount of CONFIDENTIAL - HV-06_AOGCC1 0-407Summary_AFE162171 HV-06_AOGCC10-407Summary_A FE162171, last revised 9/22/2004, page 3 e e cement). RID Schlumberger, Clear rig floor & prep to POOH and lay down pipe POOH & Lay down drill pipe Lubricate Rig. Continue POOH & Laying down drill pipe. 4/25/04 Finish pulling 4" drill pipe (wet) Starting to have problem with pipe movement in yard to service rig as pad falling apart in front of rig. Inspect BOT HR Liner Running Tool, all parts there from rotating dog slips to wash pipe. Lay down same and clean work area. Clean rig floor while moving iron on pipe racks and picking up PBR Mill. After 14 hours setting time closed blind rams & performed open shell test. Pumped 5.4 Bbls away and had 4167 psig. Notice leak off found relief valve on pumps leaking valved off mud pumps and Kill Line. Leak off rate was 1.5 % over last five minutes. Inspect brass flags on PBR polish mill and RIH 87 Stds . PIU single & cement head, wash down at 3 BPM at 400 psig & tag @ 5338' Circ B/U at 6.3 BPM 11100# Clean rig floor and tool room of tools, cleaning pits & put iron away as rig shut down waiting on 3 1/2" pipe tally. No access to short pipe rack all day, using 450 cat to keep access to long pipe rack. Pad has went (Pure Punk) to the north and east of rig. Lay down circulating head POOH DIP and lay down Pull wear ring Hold PJSM on running 3 1/2" tbg. Rig up Weatherford tongs 4/26/04 P/U 3 1/2" Tubing seal Assy. 80-40 Locator TBG Seal Assy with (1) bonded Seal Unit with 10' spacer tube with (3) bonded Seal Unit. RIH, picking up 3.5 TBG. T/3032' P/U Injector sub, RIU Polard, M/U Injector sub control line, Test to 1,100 PSI, Bled press to 500 PSI. RIH with 3.5 TBG Tl4400'. Change out Weatherford Tong's, Problem with HYD. Unit. RIH with 3.5 TBG T/5548', JT #178 Change out Elev. P/U Cementhead for pumping. Pump down with JT# 179,180. Pumping @ 15 SPM, pressure to 500 PSI, Bleed offTBG press,RIH 16.5 on JT# 180,Set down 4k on locator shoulder,PIU to P/U weight 48k Mark pipe, P/U 2' above locator shoulder, Mark pipe for space out. Lay down 3 JTS, M/U 8',6',4', pups, and JT#178. M/U Hanger, Install chem inj line, Test line to 2,500 PSI, M/U landing Joint, Drain stack, Land HGR, RITDP's. Test backside to 1,500 PSI. For 30 MIN. UD Landing Joint, Install BPV, RID Weather Equipment. NID BOP's 4/27104 NID BOP's, Clean mud cross and single gate, Double gate, Chokeline and Choke valve. P/U 11 "5m x 3 118" dry hole tree assy. Lower tree down to top of hanger neck, Attempt to lower over the neck of hanger with no success. P/U 10' riser joint and set down on top of tree assy to push seal fig over hanger neck, Hammer up tree, Test void to 5,000 PSI. Test between neck seals on hanger to 2,500 for 30 Min. Pull BPV install TWC, Test open body tree to 250 - 5,000 PSI. Pull TWC & install BPV. (Note: The BPV will need to pulled before any downhole work) Note: CHANGE OVER TO DEMOBILIZE RIG @ 06:00, New Report. 5/15/04 Schlumberger electric line arrived on location. Held safety meeting and rigged up Schlumberger. Ran in the well with a RST/SCMT log. The SCMT tool failed on the way in the hole. Tied into the Reeves Quad Combo log dated 4/23/04 and logged from total depth of 11730' WLM to 5300' with the RST tool. Pulled out of the hole. Trouble shot the SCMT tool, the tool dumped hydraulic fluid. Secured the well and departed location to repair the SCMT tool. TESTING 5/17104 SDFN. MIRU Schlumberger electric line. Also rig up Pollard hot oil truck to apply pressure to the wellbore while logging with SCMT. Test lubricator and conduct prejob safety meeting. RIH with SCMT log to 11,700'. Tie into Reeves quad combo log of 4/23/2004. Pressure up the wellbore to 2500 psi. Log from 11,700' to 5300'. Top of cement approximately 6700', but generally good looking cement. POOH. Bleed off wellhead pressure. RD Schlumberger and Pollard. Secure well. SDFN 6/6/04 Haul crane to location. MIRU Johnson tank on bermed liner. PJSM Scope out location, MI Schlumberger 1-3/4" coil tubing and nitrogen. Move & lay liner for spotting equipment. Spot crane, coil unit, nitrogen equipment, etc.. RU coil tubing unit on well HV-6. Locate adaptor flange, berm area around coil tubing unit. Run lines, hook up water supply to Schlumberger test pump. Test BOPE. Top set of blindlshear rams failed. Replaced top set of rams, successfully retested all to 300/3000 psi. 6/7104 SDFN Install jet nozzle on Schlumberger 1-3/4" coil. NU injector head. Conduct prejob safety meeting. PT lubricator to 30013000 psi. PT nitrogen pump lines to 5000 psi. Purge reel with nitrogen to Johnson "A" tank. Vacuuming out water from Johnson tank to haul to G&I facility. RIH displacing base oil in wellbore to Johnson tank. Tag at 11,722' CTM. Begin pumping nitrogen at 800 scfm taking returns to Johnson tank. Nitrogen to surface. Shut in well at choke manifold and shut down nitrogen pumping. POOH with coil tubing. Recovery = 95 bbl of base oil. Load base oil into vac trucks to haul to Red #1 location. POOH. SITP CONFIDENTIAl-- HV-06_AOGCC10-407Summary_AFE162171 HV-06_AOGCC10-407Summary_A FE162171, last revised 9/22/2004, page 4 e e = 1200 psi. Pump nitrogen into we II bore to bring SITP to 1600 psi. Shut master valves and swab valve. Blow down trapped nitrogen pressure in reel. RD coil tubing. 6/8/04 SDFN. Demob coil tubing unit, nitrogen unit, other coil tubing equipment, and Johnson tank. SDFN 6/9/04 SDFN RDMO well testing equipment to allow drilling rig to move in. PU liner and clean up pad. Transport well test equipment to NNA pad. SDFN 6/13/04 SDFN MIRU well testing equipment on HV-6. Place liner and berm storage tank. Pressure test lines. SDFN 6/15/04 SDFN MIRU Schlumberger electric line unit. RU SPIDR gauge on tubing. Conduct SIMOPS safety meeting with well testers, drilling foreman, and Schlumberger crew. Pressure test lubricator to 3000 psi using methanol. Pressure up on methanol injection line with test pump, sheared out rupture disk at 4000 psi. MU 28' of 2.5",3 spf, 120-deg phase hollow carrier guns loaded with 10.5 gm PJ2506 charges. Guns are armed with a SAFE firing head. SITP = 1600 psi, SICP = 0 psi. RIH with guns while bleeding tubing pressure to 1000 psi for perforating underbalance. While RIH, apparently tag fluid level at 9670'. Confirm with repeat tag. Wellbore was jetted dry on June 7 and did not expect to see a fluid level in the wellbore. POOH with guns to confirm fluid level and fluid density. OOH. LD guns, MU pressure gauge. Tools came out wet. Shot fluids levels at 9441' and 9469' using packer sea/bore at 5558' for depth correlation. RIH with pressure sensor on Schlumberger wire. Confirm fluid level at 9706'. RIH to 11,600', log up with pressure/temperature sensor to 9600'. Fluid gradient approximately 7.8 ppg down to 11,600'. Apparently wellbore was not adequately purged during coil tubing jetting operation of 6/7/04. POOH. PU 28' of 2.5" guns and RIH. Bleed tubing pressure down to 700 psi to compensate for the extra hydrostatic of the diesel in the wellbore. Correlate depth with CCL to SCMT log of 5/17/2004. Attempt to perforate T-120 Sand with 2800 psi drawdown. No indications of firing, no increase in tubing pressure. POOH. No shots fired. Unable to locate problem. Replace ESIC, EFI, and rehead rope socket. RIH with same 28' of guns. Correlate to SCMT, perforate T-120 Sand at 10,854' - 10,882' with 2800 psi drawdown at 1950 hrs with 673 psi TP. POOH. Got an immediate 10 psi pressure gain. Pressure continued to build while POOH. OOH. All shots fired. LD guns, RDMO Schlumberger. SITP = 723 psi. Open well to Unocal test seperator at 2050 hrs. Bled tubing pressure to 200 psi. Well not able to flow against 200 psi back-pressure. Shut well in to build pressure. Attempted to shoot fluid /evel but unable to get machine operating properly. 6/17/04 SDFN MIRU slickline. Conduct prejob safety meeting. Test lubricator to 1500 psi. SITP = 764 psi. RIH with 2.80" gauge ring. Tag bottom at 11,702' KB, indicating possible 29' of fill. POOH. Top of fluid at 2100'. PU 10' of 2.5" drive-down bailer and RIH to 11,000' (immediately below perfs). Capture fluid sample at 11,000' and POOH. Sample appears to be all base oil. PU tandem pressure gauges. RIH making 3-minute stops at 0',3000',6000',9000', and 11,500'. POOH at constant 120 fpm to surface. Download guages at surface. RIH with 2.5" drive-down bailer to 10,000'. Capture fluid sample from 10,000', POOH. Sample again appears to be base oil. RIH with 2.5" drive-down bailer to 5,000'. Capture fluid sample from 5,000', POOH. This sample again appears to be all base oil. RDMO slickline. SDFN 6/18/04 SDFN Conduct prejob safety meeting. RU swab unit (0.125" wire) onto HV-6. Blow well down from 760 psi to 0 psi. Swab well to flowback tank. Make a total of 20 runs (see details on swab sheet) recovering approximately 25 bbl of fluid. Fluid level at the start of swabbing was 1762' and ended at 2550'. Well not showing any indications of trying to flow. Caught samples for water analysis. RDMO swab truck. SDFN CONFIDENTIAL -- HV-06_AOGCC10-407Summary _AFE162171 HV-06_AOGCC1 0-407Summary _AFE162171, last revised 9/22/2004, page 5 >Information >Well >Directional Surveys >FUlwey - e Select Well: HV6 Name Well Date Created Position Log HV6 8/31/2004 Well Name CURRENT STATUS API KB Surf X Surf Y (ft) (ft) (ft) HV6 UNKNOWN 502312001900 739 227,900 2,189,634 MD TVD ssrVD X Off Y Off X Y Inc Azìm uth (ft) (ft) (ft) (ft) (ft) (ft) (ft) (deg) (deg) 0 0 739 0 0 227,900 2,189,634 50 49 690 0 0 Inconsistant Data 227,900 2,189,634 Click HERE to view Directional Survey. 100 99 640 0 0 227,900 2,189,634 150 149 590 0 0 227,900 2,189,634 200 199 540 0 -1 227,900 2,189,633 250 249 490 0 -2 227,900 2,189,632 300 299 440 -1 -2 227,899 2,189,632 350 349 390 -1 -3 227,899 2,189,631 400 399 340 -1 -3 227,899 2,189,631 450 449 290 -1 -4 227,899 2,189,630 500 499 240 -2 -4 227,898 2,189,630 550 549 190 -2 -5 227,898 2,189,629 600 599 140 -2 -5 227,898 2,189,629 650 649 90 -2 -6 227,898 2,189,628 700 699 40 -3 -6 227,8972,189,628 750 749 -10 -3 -7 227,897 2,189,627 800 799 -60 -3 -7 227,897 2,189,627 850 849 -110 -3 -8 227,897 2,189,626 900 899 -160 -4 -8 227,896 2,189,626 950 949 -210 -4 -9 227,896 2,189,625 1,000 999 -260 -4 -9 227,896 2,189,625 1,007 1,007 -268 -4 -9 227,896 2,189,625 1,143 1,142 -403 -5 -11 227,895 2,189,623 1,206 1,205 -466 -6 -11 227,894 2,189,623 1,269 1,268 -529 -7 -12 227,893 2,189,622 1,332 1,331 -592 -10 -14 227,890 2,189,620 1,395 1,394 -655 -14 -16 227,886 2,189,618 1,458 1,457 -718 -21 -19 227,879 2,189,615 1,521 1,519 -780 -29 -22 227,871 2,189,612 1,585 1,582 -843 -37 -26 227,863 2,189,608 1,648 1,645 -906 -46 -30 227,854 2,189,604 1,711 1,707 -968 -56 -35 227,844 2,189,599 1,774 1,768 -1,029 -67 -41 227,833 2,189,593 1,837 1,830 -1,091 -80 -48 227,820 2,189,586 1,900 1,891 -1,152 -94 -55 227,806 2,189,579 1,963 1,951 -1,212 -109 -63 227,791 2,189,571 2,026 2,012 -1,273 -126 -71 227,774 2,189,563 2,089 2,071 -1,332 -143 -81 227,757 2,189,553 2,152 2,131 -1,392 -160 -91 227,740 2,189,543 2,215 2,190 -1,451 -179 -102 227,721 2,189,532 2,278 2,249 -1,510 -199 -112 227,701 2,189,522 2,341 2,307 -1,568 -220 -124 227,680 2,189,510 CONF\OENT\AL 2,404 2,365 -1,626 -243 -135 227,657 2,189,499 2,467 2,422 -1,683 -266 -148 227,634 ~486 e 2,531 2,480 -1,741 -291 -161 227,609, ,473 2,594 2,536 -1,797 -315 -174 227,585 2,189,460 2,657 2,592 -1,853 -340 -188 227,560 2,189,446 2,720 2,649 -1,910 -364 -203 227,536 2,189,431 2,783 2,705 -1,966 -387 -217 227,513 2,189,417 2,846 2,762 -2,023 -411 -231 227,489 2,189,403 2,909 2,818 -2,079 -435 -246 227,465 2,189,388 2,972 2,874 -2,135 -461 -262 227,439 2,189,372 3,035 2,929 -2,190 -487 -277 227,413 2,189,357 3,098 2,985 -2,246 -513 -291 227,387 2,189,343 3,161 3,040 -2,301 -540 -305 227,360 2,189,329 3,224 3,094 -2,355 -568 -320 227,332 2,189,314 3,288 3,149 -2,410 -597 -336 227,303 2,189,298 3,351 3,203 -2,464 -625 -353 227,275 2,189,281 3,414 3,255 -2,516 -655 -370 227,245 2,189,264 3,477 3,308 - 2,569 -685 -387 227,215 2,189,247 3,540 3,360 -2,621 -716 -405 227,184 2,189,229 3,603 3,413 -2,674 -746 -422 227,154 2,189,212 3,666 3,464 -2,725 -778 -440 227,122 2,189,194 3,730 3,517 -2,778 -810 -458 227,090 2,189,176 3,793 3,568 -2,829 -842 -476 227,058 2,189,158 3,856 3,619 -2,880 -873 -494 227,027 2,189,140 3,919 3,671 -2,932 -904 -513 226,996 2,189,121 3,982 3,723 -2,984 -934 -532 226,966 2,189,102 4,045 3,775 -3,036 -964 -550 226,936 2,189,084 4,108 3,827 -3,088 -994 -569 226,906 2,189,065 4,172 3,880 -3,141 -1,025 -588 226,875 2,189,046 4,235 3,932 -3,193 -1,056 -606 226,844 2,189,028 4,298 3,984 -3,245 -1,087 -624 226,813 2,189,010 4,361 4,036 -3,297 -1,118 -642 226,782 2,188,992 4,424 4,087 -3,348 -1,149 -660 226,751 2,188,974 4,487 4,139 -3,400 -1,180 -678 226,720 2,188,956 4,551 4,191 -3,452 -1,212 -696 226,688 2,188,938 4,614 4,243 -3,504 -1,243 -713 226,657 2,188,921 4,677 4,295 -3,556 -1,275 -731 226,625 2,188,903 4,740 4,347 -3,608 -1,306 -749 226,594 2,188,885 4,803 4,399 -3,660 -1,337 -767 226,563 2,188,867 4,866 4,451 -3,712 -1,367 -785 226,533 2,188,849 4,929 4,503 -3,764 -1,398 -803 226,502 2,188,831 4,992 4,555 - 3,816 -1,428 -820 226,472 2,188,814 5,055 4,607 -3,868 -1,458 -838 226,442 2,188,796 5,118 4,660 -3,921 -1,488 -857 226,412 2,188,777 5,181 4,712 -3,973 -1,518 -876 226,382 2,188,758 5,244 4,764 -4,025 -1,549 -895 226,351 2,188,739 5,307 4,815 -4,076 -1,580 -913 226,320 2,188,721 5,370 4,866 -4,127 -1,612 -933 226,288 2,188,701 5,433 4,917 -4,178 -1,643 -953 226,257 2,188,681 5,497 4,968 -4,229 -1,675 -974 226,225 2,188,660 5,560 5,017 -4,278 -1,708 -995 226,192 2,188,639 5,623 5,066 -4,327 -1,741 -1,018 226,159 2,188,616 5,686 5,114 -4,375 -1,775 -1,040 226,125 2,188,594 5,715 5,136 -4,397 -1,790 -1,051 226,110 2,188,583 CONFIDENTIAL 5J98 5,199 5,862 5,247 5,925 5,295 5,988 5,344 6,051 5,394 6,177 5,494 6,303 5,597 6,429 5,701 6,492 5,753 6,618 5,857 6,745 5,961 6,871 6,064 6,997 6,165 7,123 6,265 7,250 6,366 7,376 6,467 7,502 6,568 7,628 6,671 7,754 6,776 7,881 6,883 8,007 6,989 8,133 7,097 8,259 7,203 8,386 7,308 8,512 7,412 8,638 7,516 8,764 7,620 8,891 7,725 9,017 7,828 9,143 7,933 9,270 8,039 9,396 8,146 9,522 8,253 9,649 8,362 9,775 8,470 9,901 8,580 10,027 8,691 10,153 8,804 10,280 8,919 10,406 9,036 10,532 9,156 10,658 9,278 10,784 9,401 10,911 9,525 11,037 9,649 11,163 9,774 11,289 9,898 11,416 10,024 11,542 10,148 11,668 10,272 11,749 10,352 -4,460 -4,508 -4,556 -4,605 -4,655 -4,755 -4,858 -4,962 -5,014 -5,118 -5,222 -5,325 -5,426 -5,526 -5,627 -5,728 -5,829 -5,932 -6,037 -6,144 -6,250 -6,358 -6,464 -6,569 -6,673 -6,777 -6,881 -6,986 -7,089 -7,194 -7,300 -7,407 -7,514 -7,623 -7,731 -7,841 -7,952 -8,065 -8,180 -8,297 -8,417 -8,539 -8,662 -8,786 -8,910 -9,035 -9,159 -9,285 -9,409 -9,533 -9,613 -1,835 -1,082 226,065 2.,552 -1,869 -1,106 226,031 ,528 -1,902 -1,130 225,998 2,188,504 -1,934 -1,153 225,966 2,188,481 -1,965 -1,177 225,935 2,188,457 -2,025 -1,224 225,875 2,188,410 -2,084 -1,267 225,816 2,188,367 -2,142 -1,308 225,758 2,188,326 -2,171 -1,329 225,729 2,188,305 -2,228 -1,371 225,672 2,188,263 -2,285 -1,416 225,615 2,188,218 -2,340 -1,464 225,560 2,188,170 -2,396 -1,515 225,504 2,188,119 -2,450 -1,569 225,450 2,188,065 -2,501 -1,626 225,399 2,188,008 -2,549 -1,684 225,351 2,187,950 -2,594 -1,744 225,306 2,187,890 -2,636 -1,804 225,264 2,187,830 -2,679 -1,859 225,221 2,187,775 -2,721 -1,913 225,179 2,187,721 -2,763 -1,965 225,137 2,187,669 -2,803 -2,017 225,097 2,187,617 -2,846 -2,070 225,054 2,187,564 -2,890 -2,126 225,010 2,187,508 -2,933 -2,184 224,967 2,187,450 -2,976 -2,239 224,924 2,187,395 -3,018 -2,296 224,882 2,187,338 -3,061 -2,355 224,839 2,187,279 -3,103 -2,413 224,797 2,187,221 -3,142 -2,472 224,758 2,187,162 -3,178 -2,531 224,722 2,187,103 -3,214 -2,588 224,686 2,187,046 -3,250 -2,643 224,650 2,186,991 -3,289 -2,696 224,611 2,186,938 -3,325 -2,748 224,575 2,186,886 -3,360 -2,800 224,540 2,186,834 -3,395 -2,848 224,505 2,186,786 -3,429 -2,893 224,471 2,186,741 -3,462 -2,935 224,438 2,186,699 -3,490 -2,971 224,410 2,186,663 -3,515 -3,000 224,385 2,186,634 -3,537 -3,024 224,363 2,186,610 -3,559 -3,044 224,341 2,186,590 -3,580 -3,058 224,320 2,186,576 -3,599 -3,068 224,301 2,186,566 -3,618 -3,073 224,282 2,186,561 -3,637 -3,073 224,263 2,186,561 -3,656 -3,070 224,244 2,186,564 -3,675 -3,064 224,225 2,186,570 -3,694 -3,054 224,206 2,186,580 -3,706 -3,047 224,194 2,186,587 e CONFJDENTIAl a STATE OF ALASKA . ALASKA-'AND GAS CONSERVATION COMMIS RECEIVË[) 1 a. Well Status: OilD GasQ WELL COMPLETION OR RECOMPLETION REPORT ANQ..I fl~ '~~~J/ Plugged D AbandonedD SuspendedD WAGD 1b. Well Class: _.. ~ c...uu.,. 20AAC25.105 20AAC25.110 DeveloPmA¡~ Oil & Gif~n~.·..r.l InS$IÒn No. of Completions Other Service D Straloiaranhic TeslLj" 5. Dat~, Susp., orNú 12. Permit to Drill Number: .". Aband.: 1ii15/04 204-044 6. Date Spudded: 13. API Number: April 7, 2004 502312001900 7. Date TD Reached: 14. Well Name and Number: April 22, 2004 HV-06 8. KB Elevation (ft): 15. Field/Pool(s): 739' 9. Plug Back Depth(MD+ TVD): 11,731 '/1 0,334' 10. Total Depth (MD + TVD): 16. Property Designation: 11,798'/10,400' C-061590 11. Depth Where SSSV Set: n/a 19. Water Depth, if Offshore: n/a feet MSL GINJD WINJD WDSPLD 2. Operator Name: Union Oil Company of California 3. Address: PO Box 196247, Anchorage, AK 99519 4a. Location of Well (Governmental Section): Surface: 1,088' FSL, 1,363' FEL, Sec. 22, T2S, R13W, SM Top of Productive Horizon: ~{~4~ é~-JncrJ~ Total Depth: ,\ Ii I, 4b. Location of Well (State Base Plane Coordinates): Surface: x- 227,900 y- 2,189,634 TPI: x- 224,330 y- 2,186,582 Total Depth: x- 224,187 y- 2,186,592 18. Directional Survey: Yes Q No D 21. Logs Run: Quad Combo, RST, SCMT Deep Creek UnitfTyonek 17. Land Use Permit: n/a 20. Thickness of Permafrost: n/a 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE HOLE SIZE CEMENTING RECORD FT. TOP BOTTOM TOP BOTTOM PULLED 16" 0.5" W.t. 60 ksi butt welded 0 67 0 66' DRIVEN 9-5/8" 47# L-80 0 1,037' 0 1,037' 12-1/4" see schematic 7" 26# L-80 0 5,753' 0 5,165' 8-1/2" see schematic 3-1/2" 9.2# L-80 5,558' 11,796' 5,015' 10,398' 6-1/8" see schematic 23. Perforations open to Production (MD + TVD of Top and Bottom Interval, Size and Number; if none, state "none"): T-120: 10,854'-10,882' MD (9469'-9496' TVD), 3 spf, 120-deg phase, 6/15/2004 24. TUBING RECORD I DEPTH SET (MD) PACKER SET (MD) 5,539' SIZE 3-1/2", 9.2# @ 5,593' I 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED n/a 26. Date First Production: PRODUCTION TEST Method of Operation (Flowing, gas lift, etc.): Date of Test: n/a Hours Tested: Production for Oil-Bbl: Test Period .... Calculated Oil-Bbl: 24-Hour Rate ... Flow Tubing Press. Casing Press: Gas-MCF: Water-Bbl: Choke Size: IGaS-Oil Ratio: Oil Gravity - API (corr): Gas-MCF: Water-Bbl: 27. CORE DATA n" Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if Ie. Submit core chips; if none, state "none". "'"..,.-....:'~_.,,,. COMPLETION I ,,¡::;~1E /.r ~ RBDØS BfL Form 10-407 Revised 12/2003 '1\ ,-- -, I V I:: L..I SfiP ~ ~ "lUt14 SEP,c:de 8 ORIG\NAL Alaska Oil & GI. Cons, Commis ion Anchorage G CONTINUED ON REVERSE '. .\ l;, - NAME GEOLOGIC MARKERS M TVD 29. "'ORMATION TESTS Include and briefly su e test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". 28. none BASE QAL Beluga Mid Beluga Tyonek Lower Tyonek 424 -1596 -3468 -5200 -8100 315 2371 4569 6718 10192 RECEIVED SEt' - 2 2004 Alaska Oil & Gas Cons. CO\TImì&$ìoft Anchorage 30. List of Attachments: summary of daily operations, directional survey, schematic 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Rob Stinson 263-7804 Printed Name: Philip J. Krueaer Signature: Title: Drilling Manager Phone: 907-276-7600 Date: 8/31/2004 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for I njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". CONF\OENllAl Form 10-407 Revised 12/2003 . Unocal Alaska 909 W. 9th Avenue Anchorage, AK 99501 Tete: (907) 263-7889 Fax: (907) 263-7828 E-mail: olldealld@lIlIocal.com . RECEIVED AUG 2 7 2004 UNOCAL~ Al3~ka Oi! & Gas Cons. Commi:}.~lor¡ Anr,horage Debra Oudean G & G Technician Date: August 25, 2004 To: AOGCC Helen Warman 333 W. 7th Ave. Ste#100 Anchorage, AK 99501 DATA TRANSMITTAL HAPPY VALLEY 3, 4, 6, 7 ;'05.. ~ ~ '- WELL LOG TYPE ,. ,\¿ I SCALE LOG INTERVAL B· FIL~ CD PAPER NOTES " ,',., , DATE' LOGGED LINE ",. HAPPY VALLEY-3 COMPLETION RECORD 3.5 FASDRILL 5 INCH 5/27/2004 9228·9900 1 1 0 1 PLUG 2.5 HSD POWERJETS ¡HAPPY VALLEY·4 COMPlETION RECORD HAlLIBURTON SINGH I "'12''',/00;0.'''' II~ I FASDRILL BRIDGEPLUG 2.5 POWERJET HSD 3 SPF DATA COMBINED ;'O'·þ~; ) ¡HAPPY VALLEY·4 llHAPPY VALLEY·4 ¡",(}If ¡HAPPY VALLEY·6 J.o. Olß HAPPY VALLEY·7 ~O~ ( ¡HAPPY VALLEY·7 I APPY VALLEY-7 [COMPLETION RECORD HALLlBUTRON 15 INCH I 7/6/200419050'9~11To 0 ON 1 CD I FASDRILL BRIDGE PLUG I I ¡COMPLETION RECORD PRESSURE / 51NCH I 7/6/2004'15080-9248 1111Tj¡-0 I TEMPERATURE I I I I , coMPLEríONRECORD2.5HSDPJ '5INCH 6/15/200419600'11605 ¡-----¡-[11-or , , J 3SPF PRESSURE, TEMPERATURE I [ARRAY INDUCTION BOREHOLE .~ 7/16/20041".'38' 11liíij' l-- -- I COMPENSATED SONIC MD INCH I I I DATA COMBINED ARRAY INDUCTION BOREHOLE 12TrI,INCH 17/16/20,,04150-8,3,88 ¡-----¡-,í1ro , 0 ON 1 CD COMPENSATED SONIC TVD I ' I I I MUDLOGGING FINAL WELL REPORT ¡-II Ion 0 ¡-1 Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. Date: . [Fwd: ~wd: RE: Unocal's gas well 9 miles .ell rd. Ninilchik]] . ~()t)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. Ninilchik] Date:Mon, 23 Aug 2004 15:20:04 -0800 From:Thomas Maunder <tom maunder(ã}admin.state.ak.us> Organization:State of Alaska To:John Norman <john norman(ã}admin.state.ak.us>, Daniel T Seamount JR <dan seamount(ã}admin.state.ak.us>, Bob Crandall <bob crandall(ã}admin. state. ak.us>, Robert Mintz <robert mintz(ã}law.state.ak.us> CC:Jody J Colombie <jody colombie(ã}admin.state.ak.us> All, It appears that there may be a potential issue brewing in the Happy Valley area. If! receive any further emails, I will forward them on. Tom -------- Original Message -------- Subject:RE: Unocal's gas well 9 miles oilwell rd. Ninilchik Date:Mon, 23 Aug 200415:03:18 -0800 From:Joseph Kashi <kashi(ã}alaska.net> To:'Thomas Maunder' <tom maunder(ã}admin.state.ak.us> CC:'phillip yezierski' <philski9(ã}yahoo.com>, 'Carol D Lee' <carol lee(ã}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 .ell 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 oil well rd. Ninilchik > >Dear Mr. Maunder, > >As per our conversation on August 20,2004 at 11:20 >a.m. > >1 own property approximately 10.5 miles down oilwell 2 of 3 8/2512004 2:50 PM · [Fw~: ~Fwd: RE: Unocal's gas well 9 miles .ell rd. Ninilchik]) >Rd. in Ninilchik from the Sterling Hwy. The Legal >description is as follows. T028 R13W 824 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. > >1 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. Norman <John Norman@admin.state.us> Commissioner Alaska Oil & Gas Cmservation Commission 3 on e 8/25/2004 2:50 PM Unocal Alaska 909 W. 9th Avenue Anchorage, AK 99501 Tele: (907) 263-7889 Fax: (907) 263-7828 E-mail: oudeand@unoca1.com . . UNOCALe Debra Oudean G & G Technician Date: August 6, 2004 To: AOGCC Helen Warman 333 W. 7th Ave. Ste#100 Anchorage, AK 99501 DATA TRANSMITTAL HAPPY VALLEY 6 ;;z ()L.( - ð L. v( Formation Log l~i~al\tVeIlReport~ . . .. ................ ... ....... ILAS Data, RW Explorer files and Final Report! I;. ,~Ò Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. I Rece;ved By 1W a~ I Date c¡ ~ 2~-evl (;/~ (.;1 '1 . Unocal Alaska 909 W. 9th Avenue Anchorage, AK 99501 Tele: (907) 263-7889 Fax: (907) 263-7828 E-mail: oudeand@unocal.com . UNOCAL Debra Oudean G & G Technician Date: June 8, 2004 To: AOGCC --Rob;n D~ë1ISUII . 333 W. 7th Ave. Ste#100 Anchorage, AK 99501 DATA TRANSMITTAL - HAPPY VALLEY 3 & 6 ~O) -1:Z.Z. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. ReceivedBÇZ)(~J. j/~ Date:OD fe(t;'l /0 « .. r_ II L, r" U ,. I AI,ASKA OIL AND GAS CONSERVATION COMMISSION ¡ FRANK H. MURKOWSKI, GOVERNOR ¡ / í Phil Krueger Drilling Manager Union Oil of California (Unocal) P.O. box 196247 Anchorage, Alaska 99519 333 W. 7'" AVENUE,SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Happy Valley #6 (Revised) Union Oil of California (Unocal) Permit No: 204-044 Surface Location: 1088' FSL, 1363' FEL, SEC 22, T2S, R13W, S.M. Bottomhole Location: 2169 FNL, 0' FWL, SEC. 28, T2S, R13W, S.M. Dear Mr. Krueger: Enclosed is the approved revised 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 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. 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. Plea provide at least twenty-four (24) hours notice for a representative of the Commission to It ss any required test. Contact the Commission's North Slope petroleum field inspector at 9- 7 (pager). BY ORDER OF THE COMMISSION DATED this2t. day of April, 2004 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. · , Unocal Corporation . P.O. Box 196247 Anchorage, AK 99501 Telephone (907) 263-7660 UNOCALe Phil Krueger Drilling Manager Monday, April 12, 2004 Re: Application for Permit to Drill (Form 10-401) -Revised Happy Valley #6 RECEIVED APR 1 2 2004 Alaska Oil & Gas Cons. Commission Anchorage Alaska Oil and Gas Conservation Commission 333 West 7'h Avenue Anchorage, Alaska 99501 Attn: Commission Chair John Norman Dear Commissioner Norman, Attached for your approval is a revised application for permit to drill (Form 10-401) for the Happy Valley #6 Well. The planned wellpath was moved more than 500' from it's / current permitted bottom hole location. This move was to bring the well closer to existing known Geologic data points. The well was spudded '~--a004, from the permitted surface location. Winton Aubert was notified immUo: our intentions to move the well path and re-permit. Attached is a revised Application for Spacing Exception that corresponds to this new bottom-hole location. If you have any questions please contact myself at 263-7628 or Mr. Rob Stinson at 263-7804. Sincerely, \..ß~. /£ / / .¡<rC/;/~_____~ Phil Krueger Drilling Manager Attachments: 10-401 Permit to Drill Revised Schematic Revised Plat Map Directional Plan MASP Cales Casing Design Revised Drilling Program Revised Mud Program OR\G\NAL . STATE OF ALASKA . ALASKA OIL AND G¿9 CONSERVATION COMMISRœCEIVED Revised - PERMIT TO DRILL APR 1 2 2004 20 MC 25 005 1a. Type of work Drill: X Re-Entry: 2. Name of Operator Union Oil of California (Unocal) 3. Address P.O. Box 196247 Anchorage, AK 99519 4. Location of well at surface 1088' FSL, 1363' FEL, Sec. 22, T2S, R13W, S.M. At top of productive interval 1759' FNL, 515' FWL, Sec. 27, T2S, R13W, S.M. At total depth 2169'FNL, O'FVVL, Sec. 28, T2S, R13W.S.M. 12. Distance to nearest 13. Distance to nearest well property line 2169 feet 16. To be completed for deviated wells Kickoff depth: 1200 feet 35° Maximum hole angle: 18. Casing program size Casing 16" 95/8" Redrill: Deepen: 1b. Type of well Service: 2639 Hole NIA 121/4" 8 1/2" 6 1/8" Specifications Grade Coupling A-252 (welded) N-80 BTC L-80 BTC-mod L-80 IBTC-mod 7" 31/2" Weight 82.77 47 26 9.2 19. To be completed for Redrill, Re-entry, and Deepen Operations. Present well condition summary ^ Ift.l.ft n:J Q. C".. I"ftn~ Stratigraphic Test:"~ ~vel9'pment Oil: Single Zone: ~Ut\lrmP~one: X 10. Field and Pool Wildcat in Beluga & Tyonek Gas Sands . Exploratol) X Developement Gas: 5. Datum Elevation (DF or KB) 738.5' KB to MSL feet 6. Property Designation C-061590 7. Unit or property Name Deep Creek Unit 8. Well number / Happy Valley #f¡ 9. Approximate spud date 04/07/04 14. Number of acres in property 11. Type Bond (see 20 MC 25.025) Number U 62-9269 Amount $200,000 15. Proposed depth (MD and TVD) feet 2133.67 12,412'/10,839' / 17. Anticipated preSsu7(see 20 MC 25.035 (e)(2)) Maximum surface 4143 psig At total depth (TVD) Setting Depth psig feet 4693 Top Bottom Quantity of cement Length MD TVD MD TVD (include stage data) 60-80' 0' 0' 60-80' 60-80' N/A - driven to refusal 1037' 0' 0' 1037' 1037' 80 bbls (275 sx) 6500' 0' 0' 6500' 5754' 134bbls (470 sx) 12,412' 0' 0' 12,412' 10,839' 205 bbls (467 sx)* 'Contingent upon log analysis. 20. Attachments: Filing fee: X Property Plat: X BOP Sketch: Drilling fluid program: X Time vs. depth plot: Refraction analysis: 21. I herby certify that the foregoing is true and correct to the best of my knowledge: Signed:\.ß~/ Is ?~ / / f/ / Permit Number API number I Approval date n \, \1 . \ \. See cover letter c;;2 0 'T - If ~ ý(" /"'I f 0 .. .2... 3/- 2. ðð /9 .:)\ \;\. Ó \ for other requirements Conditions of apP. roval ~3rrt>les required: [] Yes. ')<I No Mud log reqUired:. [] es Þ4 No HYdrogenmSUlfide measures(oj))] ~s ~ No Directional survey required Þ<1 Yes [] No Required wor . g pres~ r for. ::>E [] 2M; [] 3M; [] 5M; [] 10fv1; [] 15Mt- -t' It;'... a./J y') LA Other: 'r- sf] r ý/ ~ L/-500 ~~¡. Orì~£u.-l ~~ ~-tt P ~:::d::f~~ --r,. v-I' 4 / /, / Approved by" '/ VU/ \ Commissioner the Commission Date: W 2-d / ð '1" Form ~ R ~1-85 '--- sUbm/in triPlkate ' - Phil Krueger Diverter Sketch: Seabed report: N/A Drilling program: X 20 AAC 25.050 requirements: Title: Drilling Manager Commission Use Only Date: 4/12/04 ORIGINAL {3J:' \ i>,,$·.' ~.t~;'~"fL'>.· :".~... . , . "'"'..!<"\' ""'(f¡..'-.' !f,r.( ~jl. .~'¡ /.... ". Ii .t \,. " k "It ¿,t,:l" Location: X=227,900.113 E, Y=2,189,634.214 N Lat: 59° 59' 07.350" N, Long: 151029' 08.989" W 1088' FSL, 1363' FEL, Sec22, T2S, R13W, S.M. RKB = 22.5' AGL GL = 716' MSL RKB elevation = 738.5' MSL 16" 0.50" w.t 60 ksi butt welded. drilled and cemented. w/ base plate 12;4" hole Drill diveterless 8.8 ppg KCL- WBM spud mud Cement to surface Planned TD 12,412' MD 110,839' TVD Static BHT = 36.8°F + (0.0136 x TVD) Job Template #1 REVISED: 04/12104 DRAWN BY: JFB 8 9 17 3 24 26 25 DEEP CREEK UNIT HAPPY VALLEY 6 N 0.5 0.25 Alaska State Plane Zone 4, NAD27 IIi. ..... ._---~"--~-~------- INn:Q 4: 0 0 -1000 II) II § -0 C1> -¡¡¡ eX 1000 2000 - 3000 ã) .! - 4000 J:: - Q, Q) C 5000 'i u :e 6000 ~ Q) 7000 :::::I ... t- I V 8000 9000 1??oo 11000 12000 UNOCAL UNOCALe Location: Kenai Peninsula, Alaska Field: South Kenai Gas Field Installation: Happy Valley Slot: HV #6 Well: Happy Valley#6 Well bore: HV#6 Vers#7 RKB Elevation: 738.5' Created by : Planner Date plotted: 1-Apr-2004 Plot reference is HV#6 Versl7. Refwellpath is Happy Valley#6 Versl/7. Coordinates are in feet reference HV #6. True Vertical Depths are reference Rig Datum. Measured Depths are reference Rig Datum. Rig Datum: Kuukpik #5 RKB Rig Datum to mean sea level: 738.50 ft. Plot North Is aligned to TRUE North. j l . 9 5/8in Casing KOP 8.00 16.00 WELL PROFILE DATA Point MD Inc Azi TVD North East deg/100ft V. Sect Tie on 0.00 0.00 229.67 0.00 0.00 0.00 0.00 0.00 End of Hold 1200.00 0.00 229.67 1200.00 0.00 0.00 0.00 0.00 End of BuildfTum 2953.50 35.07 240.00 2846.04 -260.05 ·450.42 2.00 511.67 KOP 5000.00 35.07 240.00 4521 .00 -847.99 -1468.75 0.00 1668.48 End of BuildfTum 7120.51 35.08 218.88 6262.94 -1629.75 -2382.20 0.57 2870.78 Target HV6 T70 Tgt Rvs 9904.42 35.08 218.88 8541.29 -2875.03 -3386.47 0.00 4442.29 TD. & End of DropfTum 124'11ß~ 10.01 218.88 10838.50 -3617.28 -3985.05 1.00 5378.98 . DLS: 2.00 deg/1 OOft 32.00 EOC Begin Walk 34.74 ~34.62 DLS: 0.57 deg/1 OOft 7" Casing'} Top Upper Tyonek T-50 Marker HV6 T70 TgI Rvsd 24-Mar-04 Target - Begin Drop T-70 Sand Series 27.12 23.12 DLS: 1.00 deg/100ft 15.12 11.13 -- D - Casing pt. HV6 TD Rvsd 24-Mar-04 -1000 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 1??oo Scale 1 em ::: 500 ft Vertical Section (feet) .> Azimuth 229.67 with reference 0.00 N, 0.00 E from HV #6 UNOCAL UNOCAL8 ... .... Location: Kenai Peninsula, Alaska Slot: HV #6 b Field: South Kenai Gas Field Well: Happy Valley#6 Installation: Happy Valley Wellbore: HV#6 Vers#7 -_.,._-_.._~--._-_..__.~-~---_._~.- INn:Q --D~;:~~~t:~:' ~1~:r~;004--' ] ::;':~~~:~~si~~::: :'~::~e~~'-- I Coordinates are in feet reference HV #6. I True Vertical Depths are reference Rig Datum. Measured Depths are reference Rig Datum. I' Rig Datum: Kuukpik #5 RKB Rig Datum to mean sea level: 738.50 ft. I Plot No.rt~~i~ned t0r.~E North'._._1 Scale 1 cm = 200 ft -5600 -5200 -4800 East (feet\ -> -3200 -2800 -2460 -2000 -4400 -4000 -3600 -1600 -1200 -800 -400 o 400 I_L_--.L....~.L_L ~_ .1-_ .L_.J_1 .~_L-I----1...__..L......L_.._L-L_-.J___.-L.__.-L_. .L-..l_L _L --.L...L- .I__.1--.-1.__....L. 400 0 -400 -800 -1200 ^ I -1600 Z 0 ;::¡.. . -2000 ..a: c¡r CD ~ -2400 - -2800 -3200 (j) (') -3600 Q) (þ (') -4000 3 II N 0 0 -4400 ;::;> 9 5/8in Casing v/« KOP EOC Begin Walk ~4< 7" Casing Top Upper Tyonek EOC HV6 TD Rvsd 24-Mar-04 Target - Begin Drop T-70 Sand Series _.. . . UNOCALe UNOCAL ,HV #6 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 1 Well bore: HV#6 Vers#7 Wellpath: Happy Valley#6 Vers#7 Date Printed: 1-Apr-2004 J&I. BAKER HUGHES INTEQ Well bore N>vnA HV#6 Vers#7 I 25-Mar-2004 II I 1-ADr-2004 ~~'''~ GovemmentID I ~~~~~;~~ ~.... I Grid Northi 2189634 2~0 ,", I Grid EasIi 227900 1 ~O I~~e 59 73503 I L~~ 2989890 1~~78N' I~~:: 'I 229251.2400 AK-4 on NORTH AMERICAN DATUM 1927 datum True 1=:00& Go< Fæ~ I Easti ~69300 0040 I Northi ~97 449 9970 I~~ ,--I _ - JÃERIC-'NDATUM19?7~ · T~ All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Kuukpik #5 RKB 738.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 229.67 degrees Bottom hole distance is 5381.94 Feet on azimuth 227.77 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . UNOCALe UNOCAL ,HV #6 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 2 Wellbore: HV#6 Vers#7 Wellpath: Happy Valley#6 Vers#7 Date Printed: 1-Apr-2004 r&i. BAKER HUGHES INTEQ WellDath ReDort MD{ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical 8tation Comment dea/100ftl 8ectionrftl 0.00 0.00 229.67 000 OOON O.OOE 0.00 000 Tie on 10000 000 229.67 100.00 O.OON O.OOE 0.00 000 200.00 0.00 229.67 200.00 O.OON O.OOE 0.00 0.00 300.00 0.00 229.67 30000 OOON O.OOE 0.00 000 dOO 00 0.00 229.67 400.00 O.OON O.OOE 0.00 0.00 500.00 0.00 229.67 500.00 O.OON O.OOE 0.00 0.00 600.00 0.00 229.67 60000 OOON O.OOE 0.00 000 700 00 0.00 229.67 700.00 O.OON O.OOE 0.00 0.00 800.00 0.00 229.67 800.00 O.OON O.OOE 0.00 0.00 QOO 00 0.00 229.67 900.00 O.OON O.OOE 0.00 000 100000 000 ??Q.R7 1000.00 OOON O.OOE 0.00 000 1037.00 0.00 229.67 1037.00 O.OON O.OOE 0.00 0.00 9 5/8" Casina. 9 5/8in Casina 1100.00 000 229.67 1100.00 O.OON O.OOE 0.00 0.00 1?00.00 000 ??Q.R7 poo 00 O.ooN O.OOE 0.00 0.00 KOP Fnrt of Hnlrt 1300.00 2.00 240.00 1299.98 0.87S 1.51W 2.00 1.72 1dOO 00 4.00 240.00 1399.84 3.49S 604W 2.00 6.87 1!>0000 Ron ?dO 00 UQQ d!> 7 R!>~ 13.59W ?OO 1!> <IA 1600.00 8.00 240.00 1598.70 13.948 24.15W 2.00 27.43 1700 00 1000 240.00 1697.46 21.76S 37.69W 2.00 d? R? 1ROOOO 1?00 ?dO 00 17Q!> R? <11 <l0~ <;.d ??W ?OO R1 !>Q 1900.00 14.00 240.00 1893.06 42.55S 73.70W 2.00 83.72 ?OOO 00 1ROO 240.00 1989.64 55.49S 96.11W 2.00 109.18 ?100 00 1R on ?dO 00 ?OR!> ?7 70.118 .". .".., ?OO n7Q4 2200.00 20.00 240.00 2179.82 86.388 149.62W 2.00 169.97 ?<l00 00 22.00 240.00 2273.17 104.30S 180.66W 2.00 205.22 ?40000 ?4on ?dO 00 ?<lR!>.?? p<lRA.~ 21449W 2.00 243.RR 2500.00 26.00 240.00 2455.84 144.978 251.09W 2.00 285.23 ?ROO 00 28.00 240.00 2544.94 16766S 290.40W 2.00 329.89 ?70000 <1000 240.00 ?R<I?<lQ 191.908 332.39W 2.00 377.!>Q 2800.00 32.00 240.00 2718.11 217.668 376.99W 2.00 428.25 ?QOO 00 34.00 240.00 2801.97 244.89S .d?d 1 "IN 2.00 481.83 ?Q!><lfiO <I!> 07 ?dO 00 ?RA.R Od ?RO O!>~ ."'" ''''AI ?OO !>11 R7 FOr. Fnrl 3000.00 35.07 240.00 2884.10 273.418 473.56W 0.00 537.95 <110000 <I!> 07 ?dO 00 ?QR" Q4 <l0? U~ ,,')'> '>')'AI 0.00 !>Q4 dR 3200.00 3!>07 ?dOOO 30d779 330 R7~ 000 R!>101 3300.00 35.07 240.00 3129.63 359.608 622.84W 0.00 707.53 3<10000 3!>07 ?dO 00 3?11 dR <lRR <I?~ ~-~ ~~. .. 000 7M OR 3500.00 3fi.07 ?dOOO 32Q3 32 417 Ofi~ 7??3RW 000 8?0!>9 3600.00 35.07 240.00 3375.17 445.788 772.12W 0.00 877.11 3700.00 3fi.07 ?dOOO 3<1!>7 01 d74.!>1~ R2188W 000 933.M 3800.00 35.07 240.00 3fi38.86 fi03.?4S 871MW 000 990.16 3900.00 35.07 240.00 3620.70 531.978 921.40W 0.00 1046.69 4000.00 3fi.07 ?dO.OO 370?fifi !>RO. 70~ Q71 1RW 000 1103.22 4100.00 35.07 240.00 3784.40 fi8943S 10?0.92W 000 11fi9.74 4200.00 35.07 240.00 3866.24 618.158 1070.68W 0.00 1216.27 4300.00 3fi07 24000 3Q48 09 MR R8~ 11?0.44W 000 1272.80 <lAOO 00 35.07 240.00 402993 67fiR1S 1 000 132932 4500.00 35.07 240.00 4111.77 704.34S 1219.96W 0.00 1385.85 4600.00 3fi07 ?4000 4193 n2 733 07~ 000 1<IA? 37 d70000 35.07 240.00 427547 7n180S 000 1498.90 4800.00 35.07 240.00 4357.31 790.53S 1369.23W 0.00 1555.43 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Kuukpik #5 RKB 738.5ft above mean sea level) Vertical 8ection is from O.OON O.OOE on azimuth 229.67 degrees Bottom hole distance is 5381.94 Feet on azimuth 227.77 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . UNOCALe UNOCAL ,HV #6 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 3 Wellbore: HV#6 Vers#7 Wellpath: Happy Valley#6 Vers#7 Date Printed: 1-Apr-2004 J&íií. BAKER HUGHES INTEQ WellDath ReDort MD{ftJ Inc[degJ Azi[degJ TVD[ftJ North[ftJ East[ftJ Dogleg Vertical Station Comment dea/100m Sectionrft1 4Qnn nn 'Ifi n7 ?4n nn 4439.16 81926S nnn 1R11 Qfi finnn nn 'Ifin7 ?4n nn 4fi?1 nn R47 QQ~ nnn 1 RR8 4R o:¡n I Kir:k off Point 5100.00 34.99 239.02 4602.89 877.115 1518.21W 0.57 1725.03 fi?nn nn '14 Q1 ?'I8 n'l 4RR4 Rfi Qn7 n?~ n.57 17R1 R4 fi'lnn nn 'l4Rfi n7M 47RR RQ Q'I7 7?~ n fi7 1R'IR?Q 5400.00 34.79 236.05 4848.98 969.195 1662.96W 0.57 1894.97 fifinnnn '14 74 ?'Ifi nfi 4Q'I1 1'1 1001 4fi~ n.57 1Qfi1 RQ 5finnnn '14.70 ?'I4.nfi finn'l'l 1 n'14 4R~ 17fifi.'I8W n.fi7 ?nnR.44 5700.00 34.67 233.05 5095.56 1068.295 1802.15W 0.57 2065.21 fiRnn.nn 'l4R4 ?'I? nfi fi177.82 11n?RR~ 1 nfi7 ?1?? nn 5900.00 :I4.fi2 2'11.05 5?fi010 1 nR?O~ 18Q1.ROW 0.57 2178.80 6000.00 34.62 230.05 5342.40 1174.305 1935.67W 0.57 2235.60 fi10000 :14 fi 1 ??Q.04 !'i4?4 70 1?111fi~ 1Q7R.8QW 0.fi7 ?2Q2.41 6200.00 :14.62 228.04 550fiQQ 1248 77~ ?021.4fiW 0.57 2:149.21 6300.00 34.64 227.04 5589.28 1287.135 2063.39W 0.57 2405.99 R400 00 '14 fifi ??R n4 fiR71 !'i4 ?10, CC'AI n fi7 ?4R? 7R fi50000 :I4.fiQ ??5 04 fi7fi'l7R 057 ?fi1951 7" Casino. 7 6542.23 34.71 224.61 5788.50 1383.15S 2162.21W 0.57 2543.47 Too Uooor Tvonek fifiOO 00 :147'1 ??4 M fi8'1fi QR Ofi7 ?fi7fin 6700.00 :14.78 22'1M 5Q1R14 ???¡1 A7\AI 057 2fi'l2.91 6800.00 34.84 222.05 6000.24 1490.075 2263.07W 0.57 2689.56 fiQOOOO :14 QO ??1 OR ROR? ?R . c.,,, DCe- Ofi7 ?74fi 1fi 7000.00 :14.98 22007 fi1 R42fi 057 2R02.71 7100.00 35.06 219.09 6246.16 1620.595 2374.79W 0.57 2859.20 71?051 '1508 ?1R.RR R?R? Q4 1 R?Q 7fi~ Ofi7 ?870 78 FOC End 7200.00 '15.08 21R.88 fi'l?ROO 1fifi5'11~ ?410RRW 0.00 2Q15.fi5 7300.00 35.08 218.88 6409.84 1710.045 2446.95W 0.00 2972.10 740000 '15 OR ?1R 88 R4Q1 R8 1754.77S ?48'1 n'lw n.nn 'In?Rfifi 7500.00 '15.08 21RRR fifi7'152 17QQ fin~ ann '1085.00 7600.00 35.08 218.88 6655.36 1844.23S 2555.17W 0.00 3141.45 77nn nn 'Ifi nR ?1R RR R7'17 ?n ?¡:;01 ?¡:;IAI n nn 'I1Q7 Qn 7800 no '5.0R ?1RRR AA1Q04 nnn '?!'i4'15 7900.00 35.08 218.88 6900.88 1978.435 2663.40W 0.00 3310.80 800000 '15 OR ?1R RR RQR?7? ?o?o:¡ 1~C:: nnnn .~.. nnn 'I'IR725 R1nn nn 35.08 218.88 70fi4.5fi ...,.,c~ n,.,~ 000 :1423.70 8200.00 35.08 218.88 7146.40 2112.625 2771.62W 0.00 3480.15 R'Inn nn 35.08 21R88 72?8.24 ".C7.,Ce- 000 '5'16.fiO R4nn nn 'Ifi nR 218.88 7310.08 LH4.j. IW 0.00 'IfiQ'Infi 8500.00 35.08 218.88 7391.92 2246.825 2879.84W 0.00 3649.50 RRnn nn 35.08 218.88 7473.7fi ??Q1 <;<;c:: ?Q15Q2W 000 3705.95 R7nn nn 'Ifi nR 218.88 7555.60 2951.99W 0.00 3762.40 8800.00 35.08 218.88 7637.44 2381.01S 2988.06W 0.00 3818.85 RQnn nn 35.08 218.88 771 Q.28 2425.74S '024.14W 0.00 3875.30 Qonn.nn 'Ifin8 218.88 7801.12 2470.47S 0.00 'IQ'I1 7fi 9100.00 35.08 218.88 7882.96 2515.205 3096.28W 0.00 3988.20 Q?nn nn 35.08 218.88 7964.80 '132.3fiW 0.00 4044.65 Q??R QR 'Ifi nR ?1R RR 7QRR fin ?¡:;7? <>oc:: 0.00 4nR 1 nn T_ 9300.00 35.08 218.88 8046.64 2604.675 3168.43W 0.00 4101.10 Q4nn nn 35.08 218.88 812R48 ,,,, .,., .n~ ......,., .,..... 0.00 4157.55 Qfinn nn 'Ifi nR ?1R RR R?1n'l? ?~OA 1 ':lC:: nnn 4?14 nn 9600.00 35.08 218.88 8292.16 2738.865 3276.66W 0.00 4270.45 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Kuukpik #5 RKB 738.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 229.67 degrees Bottom hole distance is 5381.94 Feet on azimuth 227.77 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . UNOCALe UNOCAL ,HV #6 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 4 Wellbore: HV#6 Vers#7 Well path: Happy Valley#6 Vers#7 Date Printed: 1-Apr-2004 '&ii. BAKER HUGHES INTEQ Well MD[ft] Azi[deg] TVD[ft] North[ft] East[ft] Station Comment 35.08 218.88 8537.68 2873.058 3384.88W 35.08 218.88 8541.29 2875.03S 3386.47W 10000.00 2917.28S 10271.78 T-70 Sand Series 3326.80S 3412.858 3487.428 3550.31S 12300.00 3601.35S 12411.61 10.01 218.88 10838.50 3617.28S 3985.05W 1.00 5378.98 TD - Casing Pt., 3 1/2in Casing, End of Dro fTum All data is in Feet unless otherwise stated Coordinates are from 810t MD's are from Rig and TVD's are from Rig ( Kuukpik #5 RKB 738.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 229.67 degrees Bottom hole distance is 5381.94 Feet on azimuth 227.77 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . UNOCALe UNOCAL ,HV #6 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 5 Well bore: HV#6 Vers#7 Wellpath: Happy Valley#6 Vers#7 Date Printed: 1-Apr-2004 ,&¡. BAKER HUGHES INTEQ Wellbore 6500.00 5753.78 1366.095 2145.26W 12411.61 10838.50 3617.28S 3985.05W HV#6 Vers#7 Casi Nm1e Top Top Top Top Shoe Shoe Shoe Shoe Wellbore Tar ets Nm1e Northrft1 HV6 T70 Tgt Rvsd 2875.035 Latitude LonQitude E Northin Last Revised N59 58 39.030 W151 30 15.534 224450.00 2186836.00 15-Jan-2004 HV6 TD Rvsd 3284.70S 3901.41W 10838.50 N59 58 34.994 W151 30 25.650 223926.00 2186438.00 15-Jan-2004 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Kuukpik #5 RKB 738.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 229.67 degrees Bottom hole distance is 5381.94 Feet on azimuth 227.77 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . Maximum Anticipated Surface Pressure Happy Valley Well #6 Kenai Peninsula, Alaska Assumptions: v-JLtk ,4~~ 1. Based on offset drilling & well test data, the pore pressure gradient is predicted to be a QA.4-'T psi/ft gradient from surface to planned total depth at 11,383' TVD RKB. Unocal has drilled two wels to 9700' TVD on this pad, and has reviewed data from three other deeper wells within a 2.5 mile radius (NNA #1, HV #31-22 & Deep Creek Unit #1). 2. The MAS.P. during drilling operations will be governed by the 7" shoe frac gradient, and is calculated based on a full column of gas between the 7" shoe and the surface. 3. The MAS.P. during production operations will be the estimated SIBHP minus the gas hydrostatic pressure between TD & the surface. The 7" intermediate casing must be designed to handle a potential burst load case based on a shallow leak in the 31/2" pipe early in the life of a 10,839' TVD gas completion (Le. before reservoir pressure declines). M.A.S.P. Calculation During Production Phase: Max. pore pressure at T.D. = 10839 TVD x 0.433 = 4693 psi MAS.P. (tbg leak at surface) = 4693 psi - (0.096 psi/ft * 10839 ft) = = 3652 psi M.A.S.P. Calculation During Drilling Phase: Est. Frac pressure at 7" shoe 5754 ft. x 0.8 psi/ft = = 4603 psi MAS.P. during drilling 4603 psi - (.08 psi/ft x 5754 ft.) = 4143 /. = = pSI . . Happy Valley #6 Casing Design / Size Wei2ht / Grade Connection Tensile Burst Collapse 9-5/8" 47 # L-80 BTC mod. 1,086,0001b 6,870 psi 4,760 psi 7" 26 # L-80 BTC mod. 604,000 Ib 7,240 psi 5,410 psi 3-1/2" 9.2 # L-80 IBTC mod. 207,200 Ib 10,160 psi 10,540 psi 9-5/8" Surface Casin2 Calculated Capacity Safety Factor Tension 1037' x 47# = 48.7k 1,086k 22.3 Burst (5754' TVD x (0.433 psi/ft - 6870 psi 3.6 0.1 psi/ft)) = 1916 psi Collapse (1037' TVD x (0.433 psi/ft - 4760 psi 13.8 0.1 psi/ft)) = 345 psi 7" Intermediate Casin2 Calculated Capacity Safety Factor Tension 6500' x 26# = l69k 604k 22.3 Burst (10839' TVD x (0.433 psi/ft 7240 psi 2.0 -0.1 psi/ft)) = 3609 psi Collapse (5754' TVD x (0.433 psi/ft - 5410 psi 2.8 0.1 psi/ft)) = 1916 psi 3 ~" Production Casin2 Calculated Capacity Safety Factor Tension 12412' x 9.2# = 114.2k 207.2k 1.8 Burst (10839' TVD x (0.433 psi/ft 10160 psi 2.8 -0.1 psi/ft)) = 3609 psi Collapse (10839' TVD x (0.433 psi/ft 10540 psi 2.9 -0.1 psi/ft)) = 3609 psi . . UNOCALe AFE #162171 Happy Valley #6 Drilling Program 4/5/04 Revision 1 Objective: Drill Happv Vallev #6 Grassroots Delineation Well This well is a tight hole. All information pertaining to this well is confidential. No unauthorized entry to the location will be allowed. Move In & RiS! UP DrillinS! RiS! 1. Rig up Kuukpik #5 on the HV #6 conductor. 2. Post AOGCC approved permits in DSM's office. Prepare a sign & post the following at location entrance. Happy Valley #6 Unocal- Owner and Operator Surf. Location: 1088' FSL & 1363' FEL of Sec. 22, T2S, R13W, SM 3. NU 16" riser & bell nipple. · The diverter requirement of Regulation 20 AAC 25.035 (h)(2) has been waived in the Permit to Drill. · Plan is to RU Kuukpik PVT system and Epoch PVT system. Epoch monitors should be in DSM & Superintendent trailers, mudlogging unit and at pit watcher station. II. Drill & Case 12-114" Hole From 0' To 1037' MD I TVD 1. P/u 12 1;4" drilling assembly. Planned bit is Hughes MX-Cl mill tooth. 2. Clean out conductor wI 12 1;4" drilling assembly & drill to 1037' MD/TVD (+1- 10'). This hole section will be vertical. Survey requirements will be satisfied with a gyro, once casing is cemented. · Pump flag to estimate hole volume & calculate accurate cement volume. · Adjust TD +1- 10' as required to position 95/8" shoe +1- 10' off bottom. · Happy Valley Pad LOT data:/ LOT from HV #1 of 16.4 ppg EMW at 1037' MD/TVD LOT from HV #2 of 15.3 ppg EMW at 1045' MD/TVD LOT from HV #3 of 17.7 ppg EMW at 1022' MD/TVD LOT from HV #4 of 17.0 ppg EMW at 976' MD/TVD LOT from HV #5 of 20.4 ppg EMW at 917' MD/TVD · If necessary to POH, pumping out of hole & careful monitoring of trip speed is recommended to avoid swabbing. HV #6 Procedure - Rev 1 Page 1 4/12/2004/5:32 AM . . UNOCALe AFE #162171 Happy Valley #6 Drilling Program 4/5/04 Revision 1 3.) RIU and run 95/8" 47# L-80 BTC mod. Run as follows: · Float shoe joint - guide shoe and BTC collar to be baker-locked prior · Float collar joint - float collar on pin end (baker-locked) wI spiral-glide centralizer mid- joint. · XXjts of9 5/8". Discuss centralizer placement with Anchorage staff. Have extra seal rings on location 3. Circulate hole clean once on depth. LID one joint of9 5/8". PIU landingjoint/hanger assembly & land hanger. MIU cement head & re-establish circulation. 4. Cement 9 5/8" casing as per the attached DS program. Pump 40 bbls 10.5 ppg MUDPUSH XL, / 56.4 bbl (160.7 sx) of 12.8 ppg lead cement and 23.8 bbl (114.4 sx) of 15.8 ppg tail cement. Cement volumes are based on 737 ft oflead and 300 ft oftail, calculated on 25% excess over calculated annular volume. Cement volumes should be adjusted if excessive washout is suspected or if casing depth vary significantly from the program. · Thickening time is 3:05 on the lead and 3:04 on the tail. · Cement differential is predicted to be 250 psi when the plug bumps. · Reciprocation of 9 5/8" casing is not required. Note: Ifretums are lost, continue pumping until plug bumps. Perform top job. 5. Bump plug & pressure test to 2500 psi. Record test on chart per AOGCC requirement. Bleed off & verify floats holding. If not, hold pressure until cement has setup. · Estimated drilling Maximum Anticipated Surface Pressure = 2014 psi based on full evac at intermediate shoe depth. · 95/8" SureSea13 FC (API Type IIIB) rated to 5000 psi differential. Also, flow tested at 10 BPM wI erosive fluid for 24 hrs, still holding 5000 psi back-pressure. 6. RU Scientific portable E-line unit & run gyro survey. IV. Drill & Case 8~" Hole from 1037' to 6500' MD I 5754' TVD 1. Nipple down Riser. 2. Nipple up 11" 5M BOP stack and bell nipple. Test to 4,500 psi Install VBRs on top, blinds in middle and 7" pipe rams on bottom. HV #6 Procedure - Rev I Page 2 4/12/2004/5:32 AM . . UNOCALe AFE #162171 Happy Valley #6 Drilling Program 4/5/04 Revision 1 3. Install wear bushing. 4. RIH wI 8 W' steerable BHA wI MWD. Mud motor will be a 6 o/,¡" MI-XP. · Planned BHA includes string reamer ±1000' above bit to ream expected tight hole (mainly in the Beluga). The KCl mud is expected to minimize waste generation (i.e. hole washout). · Current planned BHA includes MWD wI turbine due to better ability to handle LCM materials and MI-XP PDM. 6-3/4" MI-XP Motor specs: 1.20 AKO setting, capable of5 ~ dog legs, Max WOB = 36,000 Ib, Operating WOB = 23,600 Ib, Max RPM = 60, Operating differential = 870 psi · Planned bit is used DS70FNPV (bit used on HV #3, #4 and #5). This bit is regarded as aggressive and somewhat difficult to steer if/when high BURs required. It might be necessary to slack off weight &Ior reduce pump rate to achieve initial kick-off. 5. Establish circulation. Drill shoe track & 20' of new fonnation. 6. Perfonn LOT as per attached procedure. · A minimum FG of 0.76 psilft is required for a 10 bbl kick tolerance when drilling to the planned 7" shoe depth, based on a 9.2 ppg MW and a swab kick. Call Superintendent ifFG < 0.76 psilft to detennine ifMOC documentation is required. 7. Drill 8 W' hole to 6500' MD I 5754' TVD (±20' for space out purposes) as per attached // trajectory. Directional planned calls for a 2 degree per 100' build to start at 1,200' MD, along an azimuth of240 degrees. This build continues to 2,953' MD with a final inclination of35 degrees. The plan has a 0.6 degree per 100' left hand turn starting at 5,000' MD and continuing to the casing point. The well may try to walk this direction. · Hole section to be landed in a clean sand, correlated by Geologists with mudlogs. · Primary & contingency plans for drilling expected lost circulation interval have been fonnulated. General plan includes; (1) use ofKCL WBM instead ofOBM (less expensive wI reduced tendency for losses), (2) drilling 8 W' hole with no unnecessary trips and as quickly as possible, (3) pre-treating KCl mud wI LCM material ±20' above suspected lost circulation interval at ±171O' TVD, (4) being prepared to drill ahead with fast-mixing LSND mud if not able to mix fast enough to keep up with losses, assuming loss rate is stabilized or decreasing, and (5) being prepared to perfonn gunk squeeze as a last resort. · Mudlogging unit should be manned continuously, fonnation logging should begin.. 8. Circulate and condition hole. POH, watching for hole swabbing. 9. Recover wear bushing. 8. RU & Run 7" 26 # L-80 BTC mod casing as follows: HV #6 Procedure - Rev I Page 3 4/1212004/5:32 AM . . UNOCAL(; AFE #162171 Happy Valley #6 Drilling Program 4/5/04 Revision 1 · Float shoe joint - guide shoe and box collar baker-locked. Double tandem rise centralizers mid-joint, placed wI stop collar. · 1 plain joint wI box collar baker-locked and one double tandem rise centralizer mid-joint, placed wI stop collar. · Float collar joint - float collar on pin end and box collar both baker-locked. One double tandem rise centralizer mid-joint, placed wI stop collar. · 7" 26# L-80 BTC mod casing to surface. Have spare seal rings on rig. · Cameron 7" Mandrel hanger · Have 7" emergency slips on location in case casing hangs up before landed. 9. Land 7" hanger in wellhead. MIU cement head, circulate and condition hole. 10. Cement 7" casing as per the attached DS program. Pump 40 bbls 10.5 ppg MUDPUSH XL, /" 88.1 bbl (249.8 sx) of 12.8 ppg lead cement and 45.6 bbl (220.4 sx) of 15.8 ppg tail cement. Cement volumes are based on 3000 ft of lead and 1500 ft of tail, calculated on 30% excess over calculated annular volume. Cement volumes should be adjusted if excessive washout is suspected or if casing depth vary significantly from the program. · Thickening time is 3:30 on the lead and 4:38 on the tail. · Cement differential is predicted to be 1350 psi when the plug bumps. · Reciprocation of 7" casing is not required. 11. Bump plug & pressure test 7" to 4000 psi. Document volume required to bump plug and pressure up to 4,000 psi, as well as the bleed back volume. Record test on chart per AOGCC requirements. Bleed off & verify floats holding. If not, hold pressure until cement is setup. 12. Install pack-off & pressure test seals to 5000 psi via test port. VII. Drill & 102 61/8" Hole from 6500' MD 15754' TVD to 12.412' MD 110.839' TVD: 1. Change bottom pipe rams to 4" pipe rams. Test BOPs to 4,500 psi. Test on both 3 Yz" and 4". 2. Install wear bushing. 3. RIH w/6 1/8" steerable BHA wI MWD. Mud motor will be a 4 %" MI-XP. · 4-3/4" MI-XP Motor specs: 1.20 AKO setting, capable of 8.0 dog legs, Max WOB = 22,500 lb, Operating WOB = 14,600 lb, Max RPM = 80, Operating differential = 1450 psi · Plan includes running a turbine instead of a battery in order to reach TD in one bit run. · Recommended bit is new SEC FM 2543 · It is assumed the steerable BHA will perform better than rotary BHA &Ior a course correction could be required. · Displace KCI WBM wI +1-9.2 ppg OBM just prior to drilling shoe track. HV #6 Procedure - Rev 1 Page 4 4/12/2004/5:32 AM . . UNOCAL8 AFE #162171 Happy Valley #6 Drilling Program 4/5/04 Revision 1 4. Drill 7" shoe track plus 20' of new formation & perform LOT. · A minimum FG of 0.59 psi/ft is required for a 10 bbl kick tolerance when drilling to the planned 7" shoe depth, based on 9.2 ppg MW & 0.5 ppg kick intensity. Call Superintendent ifFG < 0.59 psilft to determine ifMOC documentation is required. 5. Drill 6 1/8" hole to planned TD at 12,412' MD / 10,839' TVD. as per attached trajectory & mud program. The directional plan calls for a continued slight (0.6 degree per 100') left hand walk or turn to line up on the T-70 target (roughly 219 degree azimuth at 7100 ft) · If the bit does not make it to TD, it might be necessary to pump out of the hole assuming the 4" DP will cause a swab condition. · Drill in rotating mode as much as possible unless it appears the target radius will be missed. 6. Circ hole clean, pump carbide sweep, make wiper trip and POH to log. Watch hole for swabbing while POH. 7. RU Reeves E-line unit & prep to log while POH. RIH w/2 %" quad combo tools & log from TD up to 7" shoe. Continue recording GR log through casing to surface for AOGCC. Run Multi Formation Pressure Tester (MFT) tool & take pressure readings as directed by Geologist and reservoir Engineer. POH & RD Reeves E-line unit. · Quad combo consist of: Array Induction-FE, Photo Density-Caliper-Pef., Compensated Neutron, Compensated Sonic, Gamma Ray · Be prepared to log up immediately after tagging TD (i.e. minimize time with logging tool sitting motionless in openhole). · Quad combo tool dimensions: length = 58' , OD = 2.25" , weight = 428 Ibs · MFT too dimensions: length = 25', OD = 2.25" except packer, weight = 202 lbs · Have Reeves engineer & Geologist monitor log quality continuously while logging. · Run repeat below 7" casing shoe at end of job, provided all readings appear normal. · Geologists will verifY log scales and any other required calculation factors. · Call Superintendent iflogging tools set down and/or will not fall to TD. If necessary, POH & run logs on Shuttle system. · Decision to run pipe to be made based on log analysis. Low probability exists that it will be necessary to p1ugback & sidetrack. VIII. Run & cement 3 ~" monobore comoletion 1. Recover wear bushing. 2. RU to run 3 W' 9.2 # L-80 IBTC monobore completion as follows: HV #6 Procedure - Rev 1 Page 5 4/12/2004/5:32 AM . . UNOCALe AFE #162171 Happy Valley #6 Drilling Program 4/5/04 Revision 1 · 3 y;" IBTC Baker 'V' Set float shoe (Baker-Iok) · I joint 3 y;" 9.2 # L-80 IBTC tubing (Baker-Iok) · 3 y;" IBTC Baker double-valve float collar (Baker-Iok) · I joint 3 y;" 9.2# L-80 IBTC tubing (Baker-Iok) · 3 y;" IBTC Baker Type I landing collar (compatible wI wiper plug nose) (Baker-Iok) · 3 y;" 9.2 # L-80 IBTC tubing up to 500' above 7" shoe. Run 3 y;" XN nipple two joints above the landing collar. Run several 3 y;" pups as marker joint. Anchorage staff to instruct on placement. · Baker 3 y;" x 7" 26 # In-Line ZX packer (pinned for 3000 psi initiation & required 4000 psi final pressure) 500' above the 7" shoe · 3 y;" 9.2 # L-80 IBTC mod up to ±2500' · Baker 3 y;" 10m Chemical Injection Nipple (for downhole methanol injection) positioned at ±2500' verify OD = 4.775" & ID = 2.887" wI dual check valves & rupture disc. Rupture disc set at 5,000 psi. · 3 y;" 9.2 # L-80 IBTC mod. tubing to surface · 3 y;" IBTC mandrel tubing hanger (IBTC toplbottom) Note, don't pick up hanger until after the well is circulated clean. · 3 y;" 9.2 # L-80 IBTC landing joint · 3 y;" 5000 psi IBTC cementing head (Baker - verify threads &/or X-over) Notes: · Pollard to supply 1;4" SS control line & bands. · Band 1;4" control line (two bands per joint) to string from 2500' to surface. · Control Line pressure will have to be bled back occasionally to prevent thermal expansion from rupturing the rupture disk. Try to keep 1,000 psi or less on the SS line. · Have additional AB Mod seal rings on location. · Space packer to land in middle of 7" joint. · Verify shoe track will not prevent perforation of lowermost prospective test interval. · Ideally, landing collar will be at least 100' below deepest potential test interval. · Depth of 3 y;" shoe to be determined based on log analysis, most likely depth is between 10' & 30' above TD. · Have 4 y;" full opening safety valve on rig floor, wI XO back to 3 y;" IBTC. · PEC to supply fifty 3 y;" x 6 118" tandem rise welded centralizers. 102 centralizers on location after HV #5. · Centralizers to be positioned within I jt abovelbelow prospective pay intervals, with emphasis on highest probability sands. Have Geologist prioritize prospective pay intervals requiring centralization. Centralizers can be placed across couplings, or allowed to slide 30', so no stop rings should be required except in the shoe track. · Drift tubing while PIU & RIH. 2. Reciprocate pipe slowly ±I 0'. Circulate & condition hole. Pick up hanger and land out 3 y;". RU & pressure test steel cementing lines & head. HV #6 Procedure - Rev 1 Page 6 4/12/2004/5:32 AM . . UNOCALe APE #162171 Happy Valley #6 Drilling Program 4/5/04 Revision 1 5. Cement 3 'l1" tubing as per the attached DS program. Pump 55 bbls 10.5 ppg MUDPUSH XL, followed by 205.1 bbl (467.1 sx) of 12.0 ppg LiteCrete. Cement volumes are based on 6500 ft of LiteCrete, calculated on 30% excess over calculated annular volume. Cement volumes should be adjusted if excessive washout is suspected or if casing depth vary significantly from the program. ,/' · Thickening time is 3:51 on the LiteCrete. · Cement differential is predicted to be 2550 psi when the plug bumps. · Refer to attached Contingency Plan prior to cementing if 3 'l1" tubing becomes stuck. · Calculate cement volume based on top of cement 1 00' above 7" zx. The slurry above the packer should increase the probability of passing MIT. · Verify wiper plug inside cementing head prior to job. · Displace cement to cement head and drop wiper plug. Break surface lines & circulate clean to avoid pumping cement on top of wiper plug (to allow perforation immediately above wiper plug) · Verify wiper plug has gone downhole with the flag sub (tattletale). Plug must bump to set ZX packer. · If plug does not bump, stop pumping after pumping 5 bbls over calculated displacement and call Drilling Superintendent. Notes: · Attached CemCade output includes detailed dynamic calculation of pressure differential at ZX packer. Calculations indicate it is possible to displace cement to landing collar with maximum differential pressure at packer ~2500 psi. This provides about 500 psi safety factor to avoid premature setting of packer (which would stop all cement returns). ZX pinned to initiate setting with 3000 - 3300 psi. · Pump pressures should not exceed ~2900 psi (refer to attached CemCade pump schedule) during displacement, based on pump rate decreasing from 5 BPM to 1 BPM during final displacement with base oil. · Contingency plans to set packer (if plug does not bump, failed MIT, etc.) include WO cement & re-pressurizing string. Engineer will discuss issue wi AOGCC. In worst case, it could become necessary to either perf & circulate cement or cut tubing above TOC & run high pressure pack-off and second packer. Capacities: 0.03644 bbls/ft 0.02454 bbls/ft 0.02638 bbls/ft 0.03826 bbls/ft 0.0087 bbls/ft 0.0105 bbls/ft HV #6 Procedure - Rev I Page 7 4112/2004/5:32 AM . . UNOCAL8 AFE #162171 Happy Valley #6 Drilling Program 4/5/04 Revision 1 3. Pressure up to 5000 psi when plug bumps to fully set ZX packer. Bleed off pressure slowly & verify floats holding. 4. Tighten hanger lock-down screws. 5. Pressure test tbg casing annulus to 1500 psi. Record test on chart. · It is required by AOGCC that the annulus must pass MIT prior to perforating. · Advise AOGCC ofMIT in advance in case they want to witness. · If pressure test unsuccessful, pressure tubing to 4500 psi to verify ZX set, wait for cement +/-4 hrs & re-test. · If test still unsuccessful, the matter will discussed with the AOGCC. The most likely decision will be to postpone perforating until remedial work ca be performed (potentially a CTU squeeze in the worst case). 6. Set BPV. ND BOP & NU 3 1/8" 6.5m master valve & tree cap. Switch BPV for TWC valve. Pressure test short tree to 5000 psi. Recover TWC valve. Install BPV. HV #6 Procedure - Rev 1 Page 8 4/12/2004/5:32 AM . I Halliburton BAROID . UNOCAL Mud Program ! 8 AR 0 J 0 UNOCAL Happy Valley #6 Kenai Peninsula, Alaska Baroid Mud Program Halliburton Baroid Name (Printed) Signature Date Originator Dave Higbie Reviewed by Don Shaw / John Rose Customer Approval Rob Stinson Version No: Date: 2.1 April 1 , 2004 HV #6 v2.1 04/01//04 I Halliburton BAROID . . UNOCAL Mud Program ~v Vallev Producer Introduction: The following mud program was prepared for a deviated well accessing the Tyonek gas sands as part of the Happy Valley development program on the Kenai Peninsula, Alaska. This well will be spudded with a 6% KCI drilling fluid and drilled vertically to the 1,037' MD range. It will be drilled with in a 12 %" hole size and cemented. The surface casing will be drilled out with the existing mud system. The 8 W' interval will then be drilled building to 35° angle by section TD at -6,500' MD. Seven inch casing will be run and cemented at this depth. The 7" will be drilled out and a leak off performed with the water base system. The well will then be displaced to an INVERMUL system which will be used to drill the production hole. A 6 1/8" hole will be directionally drilled dropping to 10° by TD at 12,411' MD (-10,839' TVD). A 3 Y:z" production liner will then be run and cemented in place. Spud the well with a 6% KCI/PHPA mud - 8.6 ppg. The mud weight will then be held in the 8.6 - 8.9 ppg mud weight range to the surface hole TD unless hole conditions dictate otherwise. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity for efficient hole cleaning. This spud mud is formulated with two mechanisms to provide waste minimization and effective wellbore stabilization, ionic inhibition (KCI),and polymer encapsulation (PHPA). This same 6% KCI/PHPA mud will be maintained through the intermediate interval. This mud offers good LCM responses if losses are encountered. Special emphasis should be placed on maintaining low ECD's and surge/swab pressures to minimize the potential for lost circulation. The production interval will begin with an 80/20 OWR (if available) used oil base fluid. The ratio will then slowly be raised to 90/10 by 10,000' to reduce rheological parameters. CaCI levels will be maintained in the 29-32% (290,000 - 320,000 ppm WPS) range. The mud weight will be held in the 9.2 -9.6 ppg range or as required for hole stability. Primary Drillina Obiectives: · Zero fluid related HSE incidents · Achieve well bore stability · Achieve good hole cleaning considering hole angle, geometry and anticipated ROP rates · Lost circulation mitigation/control · Achieve good Zonal Isolation as per plan · Achieve minimal formation damage in Tyonek sands · Minimize fluids related NPT · Minimize drilling wastes Critical Fluid Issues: · Eliminating/controlling losses in the 1,700' and 4,100' areas. · Maintaining a low ECD in the production zone to reduce risk of lost returns. . Maintaining a stable wellbore through coal seams. . Reducing drilling wastes with the inhibited drilling fluid system. HV #6 v2.1 2 04/01//04 . I Halliburton BAROID Well Specifics: UNOCAL . Mud Program Casing Program MD TVD Footage HV#3 12 y.;" hole (9 5/8" casing) -1037' 1037' 1037' 8 W' hole ( 7 " casinq) -6500' 5754' 5463' 6 1/8" Hole (3 W' liner) 12,411' 11,500' 5911' Surface Hole Recommendations Mud Type: 6%KCI, EZ Mud Pro erties: 0-1037' System Formulation: Product Water KCI KOH Barazan D EZ Mud DP Aldacide G Baracor 700 Barascav D APIFL N/C Plastic Viscosity 6 - 16 Yield Point 25 - 40 Q.!:!. 8.5-9.0 6%KCI, EZ Mud Concentration 0.905 bbl 20 ppb (30K chlorides) 0.2 ppb (9 pH) 1.25-1.5 ppb (as required 35 YP) 0.75 ppb 0.1 ppb 1 ppb 0.5 b add as the well suds Special Mixing Instructions: . Mix in order as listed . Add polymers slowly to minimize fisheyes. Concerns and Continaencies Surface Interval - ( 0 - 1.037' MD ) Mud Type: 1. Mud weight: 2. Rheology: 3. Filtrate control: 6 % KCI/PHPA Maintain the 8.6 - 8.9 ppg density or as directed. Maintain a YP between 25 - 40 or as needed to achieve adequate hole cleaning.. No filtrate control is required prior to reaching 1370' MD. Additions BDF-263 may be required to control screen blinding/bit balling. Seepage losses in this interval can be controlled with additions of 3-5 ppb BAROFIBRE or by dedicated LCM pills but are unlikely to occur. Operations Summary: This section will drill a 12 ~"hole. Build the 6% KCI fluid in the proper order of addition. Always maintain a reduced pit volume during spud as losses are not expected in this section. Be prepared for sloughing gravels in the upper interval; increasing the system rheology with BARAZAN-D/N-Vis will assist in bringing this material out of the well, as will pumping dedicated high-viscosity sweeps. It is recommended that the pump rate be increased to the maximum practical rate while the hole is unloading gravel. HV #6 v2.1 Sweep Formulation: 30 barrels mud (500' annular coverage), add ca. 1.0 ppb BARAZAN D to achieve a tauO > 25. 3 04/01//04 I Halliburton BAROID . UNOCAL . Mud Program When penetrating high-clay content sections additions of BDF-263 ester are recommended to reduce the incidence of bit balling and shaker blinding. Be prepared to increase the YP if hole cleaning becomes an issue. Run DFG (Drilling Fluid Graphics) to confirm hole cleaning efficiency based on current rheology, flow rates and cuttings size. At TD, a Wallnut "flag" (20 bbl pill with 15 ppb of Wallnut M) should be pumped to gauge hole washout and to calculate the required cement volume. The cement will then be pumped and drilling mud will be used to bump the plug. Pretreat this chase mud with 1 ppb Bicarb and 0.5 ppb citric acid. Hazards I Concerns - Surface Interval: · Preventing lost circulation through ECD management. · Optimize solids control equipment to maintain density, sand content, and reduce the waste stream. · Maintain YP between 25 - 40 to optimize hole cleaning and to control ECD. · Pump high viscosity sweeps to enhance hole-cleaning efforts. Monitor sweep effectiveness. · Successfully cement casing. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM- 450 550 650 80 rpm 182 246 271 100 rpm 182 246 271 Baroid's recommended flowrate for this interval is 525-575 gpm to maximize hole cleaning at high penetration rates. RPM's have no effect on hole cleaning in this vertical section. Intermediate Hole Recommendations Mud Type: 6%KCI, EZ Mud Pro erties: 1,037 - 1500' 1500 - 6,500' Plastic Viscosity 6 - 15 6 - 15 Yield Point 13 - 20 13 - 20 APIFL N/C 8-10 R!:! 8.5-9.0 8.5-9.0 System Formulation: 6%KCI, EZ Mud Product Concentration Water 0.905 bbl KCI 19.8 ppb (30K chlorides) KOH 0.2 ppb (9 pH) Barazan D 1.25 ppb (as required 35 YP) Dextrid 1-2 ppb EZ Mud DP 0.75 ppb Aldacide G 0.1 ppb Baracor 700 1 ppb Barascav D 0.5 ppb (maintain per dilution rate) Special Mixing Instructions: . Mix in order as listed . Add polymers slowly to minimize fisheyes. HV #6 v2.1 4 04/01//04 I Halliburton BAROID . . UNOCAL Mud Program Concerns and Continaencies Intermediate Interval - ( 1037 - 6500' MD ) Mud Type: 6 % KCI/PHPA 1. Mud weight: 2. Rheology: 3. Filtrate control: Maintain the 8.8 - 8.9 ppg density or as directed. Maintain a YP between 13-20 or as needed to achieve adequate hole cleaning. No filtrate control is required prior to reaching 1500' MD. At this point add Dextrid and/or Pac L to reduce filtrate to the 8-10 cc/30 min range. Additions of BDF-263 may be required to control screen blinding/BHA balling. Losses in this interval can be controlled with additions of 1-2 ppb BAROFIBRE and 1-2 ppb of Baracarb 50 or by dedicated LCM pills; see appendix for LCM decision tree. Operations Summary: Drill out the cement/casing with the existing mud system. Bicarb or soda ash and citric acid should be used to pretreat for any negative effects of the cement. BARAZAN-D/N-Vis should be used to maintain rheological parameters. Maintain the mud as clean as possible while drilling. Should sweeps be required a BAROLlFT sweep is recommended (check with the G&I plant to ensure compatability). This sweep will help clean the hole with no neqative impacts on system mud weiqht or rheoloqy. Daily additions of X-Cide 207 should be made to control bacterial action. Sweep Formulation: 25 bbl of mud with .25 ppb of Barolift added. Shear thou roughly prior to pumping. Dextrid and/or PAC L should be used for filtrate control past 1,500'. While drilling, monitor the torque and drag to determine if liquid lubricant is required. When penetrating high-clay content sections additions of BDF-263 ester are recommended to reduce the incidence of bit balling and shaker blinding. Maintain the pH in the 8.5 - 9.0 range with caustic soda. By -1500' TVD the system rheology may be relaxed as hole conditions allow. This will also lower the ECD for the loss zone found -1,700' TVD. However, be prepared to increase the YP if hole cleaning becomes an issue. Run DFG (Drilling Fluid Graphics) to confirm hole cleaning efficiency based on current rheology, flow rates, angle and cuttings size. At 1,650' begin stringing in 1-2 ppb of BAROFIBRE and 1-2 ppb of Baracarb 50 (10-15 sx/hr each). This material will help seal any mini fractures or small vugs as they are drilled. Premixing -60 sx of Baracarb 50 and Barofibre in the "coil" tank and then stringing this mixture in has worked well on HV 3, 4 and 5. This treatment should be maintained until -1,850'. Also, ensure that the mud weight is maintained as low as possible through this area. Stress slow pipe movement to the drillers to reduce surge/swab on this fragile zone. Stage pumps on slowlv after connections and begin rotation prior to pumping (this will break the gels and reduce the pressure required to break the gels). Should all these efforts fail and losses occur, please refer to the LCM decision tree appendix. If the losses are still high (above 30 bbl/hr static) after attempting an LCM pill, STOP running the fluid as a KCI/EZ Mud system. All additions of these products should be halted and allow the system to slowly break back to an LSND system. Run the fluid loss and rheology as with the inhibited system. When running the LSND, stop addtions of Baracor and Barascav D when the chlorides drop below 6,000 ppm's. If any trips are required, consider spotting a 20 bbl, 20 ppb pill across the 1,700' zone. The pill should consist of base mud with 10 ppb Baracarb 50 and 10 ppb STEELSEAL added. This pill would reduce the effects of tripping back in and allow time for the LCM to "soak" into the zone. STEELSEAL and Baracarb will not dehydrate the mud which will allow for lower ECD's on the first bottoms up after TIH. Losses were incurred at - 4,100' TVD on HV #5. All pit monitoring devices should be watched closely as this zone is cut. HV #6 v2.1 5 04/01//04 Halliburton BAROID UNOCAL Mud Program Maximum Acceptable ROP in fph at Specified GPM and RPM GPM~ 500 550 600 80 r m 1 03 11 0 128 100 r m 133 148 162 Baroid recommends a flowrate in the 550-600 gpm range to maximize hole cleaning efficiencies at these high penetration rates. There is a large drop in efficiency if the rpm drops from 100 to 80. However if losses occur, the flow rate can be reduced in conjunction with a slower penetration rate which would reduce the ECD/losses. Reduce system YP with Therma Thin as required for running casing as allowed (do not jeopardize hole conditions). Run casing carefully to minimize surge and swab pressures. Reduce the system rheology once the casing is landed to a YP < 20 ( check with the cementers to see what yp value they have targeted). Consider spotting the above Steelseal LCM pill prior to running the 7" casing if losses have been seen in this interval. The plug will again be bumped with mud on the well. If operations allow, the plug can be bumped with OBM. Hazards I Concerns - Intermediate Interval: · Preventing lost circulation in the 1,700' and 4,100' ranges. · Optimize solids control equipment to maintain density and sand content. · Maintain YP between 13-20 to optimize hole cleaning and to control ECD. · Pump high viscosity or Barolift sweeps to enhance hole-cleaning efforts. Monitor sweep effectiveness. · Successfully land and cement casing. Production Hole Recommendations Mud Type: Invermul System Mud P rf rope les Densitv Viscosity PV YP ES HTHP FL WPS O/W 6517 -10,000 8~9)2* 55-80 18 - 29 9-18 1000- <8 290 to 320K 80/20 1100 10,000- TD (:Y 55 - 80 18 -29 9 -18 1000- <5 290 to 320K 90/10 1100 · Additional mud weight may be required for effective coal or shale stabilization. System Formulation Product Concentration Base Oil 0.696 bbl EZ MUL NT 4 ppb INVERMUL 4 ppb GEL TONE V 4 ppb Lime 5 ppb DURATONE 4 ppb RM63 1 ppb Water 0.178 bbl CaCI2 24.6 ppb AK-70 4 ppb BAROID to a 9.2 PPQ HV #6 v2.1 6 04/01//04 Halliburton BAROID Concerns and Continaencies UNOCAL Mud Program Production Interval (6 1/8" hole. 3.5" casin~ ): 6500' MD - TD Mud Type: 1. Mud weight: 9.2 ppg INVERMUL System. 2. Rheology: Maintain the density at 9.2 ppg or as directed; use solids control and whole mud dilution. Increase density as required for hole stability/coal sloughing. Maximize solids control usage. Maintain a YP between 9 and 18. Pump high viscosity or Barolift sweeps throughout the interval as needed, particularly prior to POH for casing. Optimized mud rheology and flow rate will be the primary mechanisms for achieving hole cleaning in this deviated wellbore. Maximize pipe rotation (ideally ~ 80 RPM). 3. Other issues: The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses and differential sticking. By 10,000 feet reduce the HTHP to < 5 cc 30 min with DURA TONE HT/AK-70 treatments. Please see the Coal Drilling recommendations attachment. Operations Summary: The water base mud system will be used to drill out the shoe and ca. 20 feet of new hole (unless operations can be worked out to bump the plug with the Invermul). Approximately 600 bbls of oil mud will be required for displacement. Used mud is available so it will be reconditioned at the rig and displaced into the well bore. Prepare the pit system for the INVERMUL as follows: · Clean pits, solids control equipment, all lines and pumps. · Flush all lines with a small volume of oil and discard. · Disconnect all water lines to the pit area and rig floor. · Check all steam fittings in pit room for leaks and repair as needed. Once the shoe has been drilled, displace the well to the ENVIROMUL system designated for this interval of the well. Pump a 25 bbl spacer ahead of the oil mud as follows: Spacer Formulation: · 20 barrels of the OBM treated with GEL TONE to a YP > 30 (app. 6-8 sx). Weight this pill to 2 ppg over the OBM weight. · Follow with INVERMUL mud system. Displacement procedure: · Monitor pump strokes to obtain correct displacement. · Maintain maximum pump rates. · Have the bit on bottom as the oil mud exits the bit. · Reciprocate the drill string by one joint every 15 minutes · Rotate the pipe as rapidly as allowed during the actual displacement. · Do not shut down during the displacement. · Use an E.S. meter at the flow line to determine when the fluid is water free enough to start taking the returns back into the system. An ES of 300-500 should be sufficient to indicate when displacement is complete. A retort should also be run at this time to confirm fluid quality. · Clean possum belly and any troughs which were used. Maintenance: 1. Additions of Geltone V and RM-63 will maintain/modify the system rheology to a YP between 9 and 18 to provide effective hole cleaning while controlling ECD and surge/swab pressures. Run the rheology HV #6 v2.1 7 04/01//04 Halliburton BAROID UNOCAL checks at flowline temp until -6800' then at 120°F to TD. to the rheology the hole is experiencing. Mud Program This will give a more accurate reflection as 2. OMC 2 and OMC 42 will be available to condition (thin) the mud as required; however, caution should be used when using these oil mud thinners (particularly the OMC-2) to avoid over-thinning the system. 3. Drill this interval with a tight DURATONE HT / AK-70 filtration mechanism « 8 cc/30 min @ 1500 F to 10,000' then <5cc/30 min @ 2000 to TD). Sarablok and Sarotrol will also be available to improve the filtration control mechanism. 4. For formation bridging/LCM, graded calcium carbonate (Saracarb(s)), cellulose fiber material (Sarofibre) and SteelSeal are available. 5. The electrical stability of the mud should be run in the 1000-1100 volt range with INVERMUL and EZ MUL as the primary and secondary emulsifiers. DRIL TREAT will be available as an effective wetting agent, if needed. 6. Maintain the water phase salinity between 290,000 - 320,000 mg/I range with sack calcium chloride. This level of salinity will provide an effective mechanism for good wellbore stabilization. 7. The excess lime content will be maintained in the 3 ppb range to provide an effective reserve alkalinity source and to improve the emulsion stability of the mud system. 8. The initial oil:water ratio will be 80:20. However if the OIW ratio is higher in the used mud do not adjust it down. From there, the system will be maintained with base oil allowing the ratio to drift to the 90: 1 0 range by 10,000'. This will help reduce the cost of the original fluid and then help control rheology/ECD's with the 90: 1 0 ratio in the lower depths of the well. Suggested Drilling Parameters Pump rate and drill string rotation should be optimized through the real-time use of the DFG software for the actual Rap while drilling. The table below highlights the maximum Rap recommendations above which hole cleaning will become an issue. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM-+ 200 250 300 40 rpm 59 73 91 60 rpm 86 113 131 80 rpm 110 150 188 Rap rates above these levels or with no (sliding) or low rpm will require an increased frequency of the following remedial hole cleaning practices: . wiper trips . back reaming · extended periods of circulation (with maximum pipe rpm, targeting> 80 rpm) · hole cleaning sweeps (change flow regime of base mud by using fibers, density or rheology for carrying capacity) · connection practices - employing extended gpm, rpm and back reaming during the connection HV #6 v2.1 8 04/01//04 . I Halliburton BAROID Sweeps Two types of hole cleaning sweeps can be used: . Increase the sweep density with SWEEPWATE to 2 ppg over system density. The SWEEPWATE will increase the sweep carrying capacity yet will be removed at the shakers; this will result in no density increase from running weighted sweeps. . To reduce the density/viscosity build up in the system, sweeps can be built by adding 0.25 ppb BAROLlFT in place of the clay. The fibrous BAROLlFT will be removed at the shakers. UNOCAL . Mud Program Note: Properly size all sweeps for 300 - 400 ft of annular coverage Supplement the hole cleaning of the drilling fluid as dictated by hole cleaning indications. Monitor all sweeps pumped and report on their effectiveness. Maximize drill pipe rotation at high rates on a frequent basis (particularly during connections) to assist in disturbing any potential cuttings accumulations down- hole. The objective of the sweep is to change the flow characteristics / carrying capacity that is inherent with the mud system. Select sweep type accordingly. Coal Drilling The following lessons were learned from extensive experience drilling coal seams in Cook Inlet. The hole stability risks when drilling coal seams are often high, and the fluid design and drilling operations have been optimized to combine reduced risk with reduced costs. The need for good planning and drilling practices is also emphasized as a key component for success. · Keep the drill pipe in tension to prevent a whipping effect which can disturb coal sections. · Use asphalt-type additives to further stabilize coal seams. · Increase fluid density as required to control the running coal. · Emphasize good hole cleaning through hydraulics, Rap and system rheology. In the event that sloughing coal is encountered, consider spotting a 30 ppb BAROTROL pill across the coal seam. The pill can be safely "squeezed" into the coal by closing the bag and applying pressure not to exceed the total annular pressure loss ( based on ECD values using the DFG software). System density increases can also be employed in increments of 0.5 ppg. Solids Control Equipment Maximize the use of all solids control equipment to ensure that the solids content of the system is kept to a minimum during this interval. 1. Run the shale shakers with as fine a screen size as possible. · Size shakers screens with coarse mesh initially · Adjust screen size as solids loading, mud rheology and flowrates allow · Inspect the shakers frequently, taking time to repair / replace damaged screens 2. Maximize the use of the centrifuge, keeping the fluid as clean as possible. Running Casing I Cementing Preparation Monitor hole fill/returns closely while running the liner to insure losses haven't occurred. Refer to Baroid's DFG+ program if calculated surge/swab values are needed. Condition the mud prior to the cement job. Displace the cement with straiaht base oil - ensure availabilitv. HV #6 v2.1 9 04/01//04 . . I Halliburton BAROID Production Hole - Hazards I Concerns: · Optimize solids control equipment to minimize colloidal solids build up and dilution requirements. · Maintain flow profile based on PV, YP and tauo flow parameters. · Pump sweeps as required to enhance hole-cleaning efforts. Monitor the effectiveness of any sweeps pumped. No sweeps have been needed in this hole section to date. · Follow the hole cleaning guidelines to assist in drilling parameter selection. Use connections for high RPM and pump rate support when these parameters are limited during drilling operations. · Follow the coal drilling guidelines. UNOCAL Mud Program Estimated Fluid Costs: 12 y,¡" Surface 8 W' Intermediate 6 1/8" Production (Oil Total $75,000 **The P-5Q estimate assumes 800 bbls of reconditioned oil mud to be used. poo' 38,000 50,000 175,000 $263,000 HV #6 v2.1 04/01//04 10 Halliburton BAROID Losses Seepage 5-10 bbl/hr Static 5 sxlhr Barofibre 40 ppb LCMlMud Pill: 10 ppb Baroseal F 10 ppb Baroseal M 10 ppb Barofibre 10 ppb Wallnut M No HV #6 v2.1 04/01//04 UNOCAL Mud Program UNOCAL Lost Circulation Decision Tree f/lnhibited Mud Systems Partial 15-60 bbllhr Static Yes No 70 ppb LCMlMud Pill: 20 ppb Baroseal F 20 ppb Baroseal M 20 ppb Barofibre 10 ppb Wallnut M No , Contact Drilling Engineer or Engineer on call to determine if additional LCM treatments are to be made or to proceed to Gunk Squeeze pill Severe 60-200 bbl/hr Static 100 ppb LCM/Mud Pill: 20 ppb Baroseal F 20 ppb Baroseal M 30 ppb Barofibre 20 ppb Wallnut M 10 ppb Wallnut F Pump Gunk Squeeze pill Total > 200 bbllhr Static Pump Gunk Squeeze pill to allow POH (Volume to be determined based upon losses Contact Drilling Engineer or Engineer on call Pump Gunk Squeeze pill (Volume to be determined based upon losses) POH, PU dumb iron BHA Consider cement I plugback contingency Notes: 1) Drill across faun or loss zone 1.5 - 2.0 times the leng1h of the throw before spotting Gunk Squeeze. 2) PBL sub should be run in BHA to spot pills if 'Partial Loss' cases or above are anticipated prior to drilling to allow the spotting of LCM pills. 3) LCM pill volume = 300'-600' column based upon actual hole diameter. 4)PRIOR TO ANY LCM PILL, APPROPRIATE DISCUSSIONS AT THE RIG MUST BE MADE TO MINIMIZE THE POTENTIAL FOR PLUGGING THE DRILL STRING. J J . . Mud Program I Halliburton BAROID UNOCAL Seepage Partial Severe Total 20-60 bbUhr 5-20 bbllhr Static Static 60-200 bbUhr Static > 200 bbUhr Static Treat Active System Treat Active System with 5 sxlhr Baracarb with 10 sxlhr Baracarb 50/150 150 Pump reverse gunk squeeze pill to allow 100 ppb lCMlMud Pill: POH (Volume to be Yes 20 ppb Baroseal f Pump reverse determined based 20 ppb Baracarb 50 gunk squeeze pill upon losses 30 ppb Barofibre to allow POH 20 ppb SteelSeal (Volume to be Contact Drilling 10 ppb Baracarb 150 No determined based Engineer or Engineer Increase Treatment to upon losses) on call 10 sxlhr Baracarb 501 50 ppb LCM/Mud Pill: 150 20 bbls Base mud 10 ppb Baracarb 25 20 ppb Baracarb 50 20 ppb Baracarb 150 Plan to pump a second 50-80 bbl reverse gunk squeeze pill if massive No losses continue. Pump reverse Consider cement I 20 ppb LCM/Mud Pill: gunk squeeze pill plug back contingency (Volume to be 20 bbls base mud determined based 1 0 ppb Baracarb 50 upon losses 10 ppb Baracarb 150 No , Contact the Engineer 1 )UNOCAl must approve any steps past PARTIAL losses. on call to determine if 2) Drill across faun or loss zone 1.5 - 2.0 times the length of the additional LCM throw before spotting reverse gunk squeeze ~lIs. treatments are to be 3) PBl sub should be run in BHA to spot pills if 'Partial Loss' cases or above are anticipated prior to drilling to allow the spotting of lCM made or to proceed to pills. reverse gunk squeeze 4) lCM pill volume = 300'-600' column based upon actual hole pill diameter. 5)PRIOR TO ANY lCM Pill, APPROPRIATE DISCUSSIONS AT No THE RIG MUST BE MADE TO MINIMIZE THE POTENTIAL FOR PLUGGING THE DRill STRING. Losses HV #6 v2.1 04/01//04 UNOCAL Lost Circulation Decision Tree fl Payzone Mud Systems 12 . I Halliburton BAROID DriJIina Fluids Proaram Synopsis UNOCAL . Mud Program General Discussion A KCI drilling fluid will be used to drill the surface and intermediate hole sections of these wells. This fluid offers hole stability, waste reduction and many options to address/prevent lost circulation. This fluid will yield a more gauge hole which reduces the waste (both while drilling and for cement jobs). This gauge hole, however, can also lead to challenges with swabbing on trips. The production hole will be drilled with an INVERMUL system. This oil based fluid will offer added hole stability and lubricity for this section with the added benefit of lowering waste stream costs. Please refer to the mud program for details. Suaaested Fluids Properties Surface Hole (12 %" hole to 9 5/8" casing point at 1 ,037' TVD) P rf rope les: Densitv Viscosity Plastic Viscosity Yield Point API FL J!!! 0-1037' 8.6-8.9 60-85 6 - 16 25 - 40 N/C 8.5-9.0 Comments: This interval will be drilled with a 6% KCI, EZ Mud fluid. Primary focus for this intervel will be adequate hole cleaning for the large diameter (12 X") hole and maintaining the drill solids / mud weight. Intermediate Hole (8 %" hole to 7" casing point at 6,500' TVD) P rf rope les: Densitv Viscosity Plastic Viscosity Yield Point API FL J!!! 1,037 - 1500' 8.7 -8.9 40-53 6 - 15 13 - 20 N/C 8.5-9.0 1500 - 6500' 8.8-9.2 40-50 6 - 15 13 - 20 <8 8.5-9.0 Comments: The mud system from spud will be conditioned and used to drill this section. Maintaining low ECO's is of primary importance. The zones -1,700' and 4,100 have had losses on previous wells. Treat with Barofibre while drilling and emphasize to drillers ECO management. An LCM decision tree is attached should losses develop. Production Hole (6 1/8" hole to 3 %" casing point at 12,411' TVD) P rf rope les: Densitv Viscosity PV YP ES HTHP FL WPS O/W 6500 -10,000 9.9 - 9.6* 45 - 60 18 - 29 11 - 20 1000- <8 280 to 310K 80/20 /' ¡ 1100 10,000- TD (9J/~ 45 - 60 18 -29 11 - 20 1000- <5 280 to 310K 90/10 1100 * - Additional mud weight may be required for effective coal or shale stabilization. Comments: The well will be displaced to an INVERMUL system prior to drilling out the 7" casing if rig ops didn't allow bumping the plug with cement. This will be used mud from previous wells. Maintaining a clean, low solids content and raising the OWR to 90/10 prior to 10,000 feet will keep the rheological profile low and reduce chances of lost circulation, excessive pump pressures, and lay down a thinner, more durable wallcake. Maintain the mud weight as low as possible but be prepared to weight up if hole conditions warrant. Reduce the 2000 HTHP fluid loss to <5 by 10,000' and maintain to TO. HV #6 v2.1 04/01//04 13 . . TRANSMITAL LETTER CHECK LIST CIRCLE APPROPRIATE LETTERIP ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME PTD# Development Service Exploration Stratigraphic CHECK WHAT ADD-ONS "CLUE" APPLIES (OPTIONS) MULTI The permit is for a new welJbore segment of LATERAL existing well , Permit No, API No. . (If API Dumber Production. should continue to be reported as last two (2) digits a function' of the original API number stated are between 60-69) above. PILOT HOLE ]n accordance with 20 AAC 25.005(f), an (PH) records, data and logs acquired for the pilot bole must be clearly differentiated "in both name (name on permit plus PH) and API Dumber (50 - 70/80) from records, data and logs acquired for welJ (name on permit). SPACING The permit is approved subject -to fuD EXCEPTION compliance with 20 AAC 25.05S~ Approval to perforate and produce is contingent upon issuance of ~ conservation order approving a spacing e:J ception. (Company Name) assumes the liability of any protest to tbe spacing .exception tbat may occur. DRY DITCH AU dry ditch sample sets submitted to tbe SAMPLE Commission must be in no greater ·than 30' sample intervals from below tbe permafrost or from where samples are first caught and ] 0' sample intervals through target zones. . Mas\(a 0\\ þ.?R 1 2 2Gü4 commtssion & Gas Cons. ~nt"o{age RECE\VEO :)~ ~~a~:)? I' J . Date ************************************** 2007775 pany of California Field Disbursing 12-APR-04 from above date. Check Amount ********100.00 . . l 1 FRANK H. MURKOWSKI, GOVERNOR AIfASKA OIL AND GAS CONSERVATION COMMISSION / i / 333 W. 7'" AVENUE,SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Phil Krueger Drilling Manager Union Oil of California (Unocal) P.O. Box 196247 Anchorage, Alaska 99519 Re: Deep Creek Unit, Happy Valley #6 Union Oil of California (Unocal) Permit No: 204-044 Surface Location: 1088' FSL, 1363' FEL, SEC. 22, T2S, R13W, S.M. Bottomhole Location: 900' FNL, 193' FEL, SEC. 28, T2S, R13W, S.M. Dear Mr. Krueger: 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 :&om 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 ':Vitness any required test. Contact the Commission's North Slope petroleum field ins ector at 5 -3607 (pager). S' ce e BY ORDER ¥W~ COMMISSION DA TED this ~ of March, 2004 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. ~ . . . Unocal Corporation . P.O. Box 196247 Anchorage, AK 99501 Telephone (907) 263-7660 . UNOCALe Phil Krueger Drilling Manager Wednesday, March 3, 2004 Alaska Oil and Gas Conservation Commission 333 West ih Avenue Anchorage, Alaska 99501 Attn: Commission Chair John Norman Re: Application for Permit to Drill (Form 10-401) Happy Valley #6 Dear Commissioner Norman, Attached for your approval is an application for permit to drill (Form 10-401) for the Happy Valley #6 Well. Unocal respectfully requests a waiver of the requirement for a diverter on the 12 X" / surface hole as allowed under AOGCC Regulation 20 AAC 25.035 (h) (2). Please refer to attached supporting documentation. The anticipated spud date is approximately April 1 st. If you have any questions please contact myself at 263-7628 or Mr. Jerry Bowen at 263-7640. Sincerely, q~~ P / Phil Krueger Drilling Manager L WB/s Enclosure MAR 0 3 2004 O~!Gt~JÞ'.(_ · .ATE OF ALASKA . . ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 AAC 25.005 f¡JC:lftt '"51'fIZ-DOt.- 1 a. Type of work Drill: X Re-Entry: 2. Name of Operator Union Oil of California (Unocal) 3. Address P.O. Box 196247 Anchorage, AK 99519 4. Location of well at surface 1088'FSL, 1363'FEL, Sec. 22, T2S, R13VV, S.M. At top of productive interval 2555' FSL, 1000' FVVL, Sec. 27, T2S, R13VV, S.M. At total depth 900'FNL, 193'FEL, Sec. 28, T2S, R13VV, S.M. 12. Distance to nearest 13. Distance to nearest well property line 5460 feet 16. To be completed for deviated wells Kickoff depth: 1200 feet 410 Maximum hole angle: 18. Casing program size Casing 16" 95/8" Redrill: Deepen: 1b. Type of well Service: Exploratory: X Developement Gas: 5. Datum Elevation (DF or KB) 738.5' KB to MSL feet 6. Property Designation C-061590 7. Unit or property Name Deep Creek Unit 8. Well number Happy Valley #6 9. Approximate spud date 04/01/04 14. Number of acres in property Stratigraphic Test: Single Zone: 10. Field and Pool Wildcat in Beluga / & Tyonek Gas Sands Development Oil: Multiple Zone: X 11. Type Bond (see 20 AAC 25.025) Number U 62-9269 Amount $200,000 15. Proposed depth (MD and TVD) 4780 feet 2133.67 13,800' 1 11,500' 17. Anticipated pressure (see 20 AAC 25.035 (e)(2)) Maximum surface 3838 psig At total depth (TVD) Setting Depth feet 4929 psig Hole NIA 121/4" 8112" 61/8" Weight 82.77 53.5 29.0 9.2 Specifications Grade Coupling A-252 (welded) N-80 BTC L-80 BTC-mod L-80 IBTC-mod Top Bottom Quantity of cement Length MD TVD MD TVD (include stage data) 60-80' 0' 0' 60-80' 60-80' N/ A - driven to refusal 1037' 0' 0' 1037' 1037' 77 bbls (273 sx) 4516' 0' 0' 4516' 4016' 96 bbls (301 sx) ".- 13,800' 0' 0' 13,800' 11,500' 251 bbls (615 sx)* *Contingent upon log analysis. 7" 31/2" 19. To be completed for Redrill, Re-entry, and Deepen Operations. Present well condition summary M/;R 0 il 2004 20. Attachments: Filing fee: X Property Plat: X BOP Sketch: X Drilling ftuid program: X Time vs. depth plot: X Refraction analysis: 21. I herby certify that the foregoing is true and correct to the best of my knowledge: Diverter Sketch: Seabed report: NIA Drilling program: X 20 AAC 25.050 requirements: Signed: hil Krueger Title: Drilling Manager Date: 12/18/2003 Commission Use Only API number Approval date See cover letter Sð - ..2:3 1- -2.. 00/ ..3 for other requirements Conditions of approval Samples required: [] Yes XJ No Mud log required. [] Yes ~ No Hydrogen sulfide measures [] Yes ~ No Directional survey required JQ Yes [] No T. t ß 0 P £ to <.(-S"OD pSt'. Required working pressure for BOPE [] 2M; [] 3M; [] 5M; [] 10M; [] 15M t t ¿S. ,J Other: -IJr '2..0 A" ,. ~<;. 0 Ç~)( 'l.) Jl.L ¥.~~'Lte.~n~¡;::~e.. ~%~ bio~l~~~rs' c~pyO"eJ . ,-'(.'J': ~ ~.. L)" CLl [ VT Y\..A...\. I {by order of Approved Commissioner the Commission Date: ORIGiNAL Sub . . . . .. List of Attachments 1. Pennit to Drill (fonn 10-401) 2. Waiver Request 3. Surveyors Location Plat 4. Acreage Map wi Offset Wells & Trajectories 5. General Drilling Procedure 6. Predicted Days vs. Depth Curve 7. Proposed Wellbore Schematic 8. M.A.S.P. Calculation & Casing Design Factors 9. Maximum VMe Stress Calculation 10. Proposed Well Trajectory 11. Kick Tolerance Output 12. HV #1 Leak-Off Test Results 13. Leak Off Test Procedure 14. Cement Volume Calculations 15. Cellar & BOP Stack Diagram 16. Choke Manifold Diagram 17. Cuttings Disposal Description 18. Offset Well Usable Quality Water Salinity Calculations & Graph 19. Preliminary Mud Program . . . . . WAIVER REQUESTS Unocal respectfully requests waivers to; (1.) AOGCC regulations 20 AAC 25.035 (C) (2.) AOGCC regulations 20 AAC 25.050 (C)(1) WAIVER #1: Unocal request permission to drill the 12 %" suñace hole to a depth of +/- / 1037' without a diverter. AOGCC regulation 20 AAC 25.035 (h) (2) stipulates: (h) IIUpon request f the operator, the commission will, in its discretion, approve a variance...... (2) from the diverter system requirements in (C) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary. 11 Based on our experience drilling 12 %" suñace holes in Happy Valley #1, #2, #3, #4 & #5, it has been proven conclusively that no shallow gas hazards exist beneath this pad to a depth of at least 1037' BRT. The 12 %" suñace hole for Happy Valley #6 will be drilled from the same pad as Happy Valley Wells #1 through #5 (within +/-225'), and to the same depth as the previous Happy Valley suñace holes. The Geologist, Dave Buthman, has reviewed the shallow geology and has prepared the following summary of the shallow lithology: From surface to 1037' VD beneath the Happy Valley surface pad, we anticipate the following lithologies: 0-300': interbedded med to coarse grained sand and coarse gravels 300-1037': interbedded light gray silty claystones, argillaceous siltstones, gray silty claystones, light gray fine to medium grained sandstones, with a few thin brown lignitic coals. We do not anticipate any significant faulting, nor do we expect any oil or gas to be trapped, as no suitable seals exist within this shallow section. For the purpose of basic risk mitigation, Unocal will utilize a gel/native spud mud which is expected to weigh approximately 9.2 ppg when drilling at the planned suñace hole TD of 1037', to eliminate the risk of a shallow water flow. . . . . WAIVER #2: Unocal requests permission to drill the 12 %" suñace hole to +/-1037' / without surveying until after the 9 5/8" casing is cemented. AOGCC regulation 20 AAC 25.050 (h) stipulates: (h) IIUpon application, the commission will, in its discretion, waive all or part of the directional survey requirements of this section or approve alternate means for determining the location of a wellbore if the variance at least equally ensures accurate surveying of the wellbore to prevent well intersection, to comply with spacing requirements, and to ensure protection of correlative rights. " Due to plans to drill the 12 %" suñace hole vertically to 1037', there is no cost-effective means to survey once each 500' as required in regulation 25.050 (C)(1). Unocal will obtain the required surveys at the first opportunity after cementing the 9 5/8" casing, before drilling the 8 Yz" hole, to eliminate the risk of a well-to-well collision and ensure accuracy of the final BHL. . . . . """\\" ........... ~ OF AI.. ., - t5.~...........:<lC\ I' _ ~ '"~,.. .. VL , -~......, "';L , : * ....49 II:i "7* ~ t'................................... , ~ ~ ~ ~ ,................................. .. ~ ~ ~"~' SCOTT McLANEy.... E ".J}, ". 4928-5 ..' - ~. .- '1 .~ ;;:...............¡P .: t " 'TOF"fSS I ONÞ-\. \,; ........ . \ \ """ OILWELL RD. SCALB 1 Inch - 800 tt.. o 300 410 ~, i NOTES 1) BASIS OF COORDINATES: NGS CORS STATION "KEN 1" NAD27 ALASKA STATE PLANE ZONE 4. 2) BASIS OF ELEVATION: NGS BM W75 NAVD88. 3) SECTION LINE OFFSETS DERIVED FROM TIES TO BlM MONUMENTS AT SW CORNER SECTION 10 AND SE CORNER SECTION 12 T2S R13W SM FOUND THIS SURVEY HAPPY VALLEY NO.1 PAD 1363' FEL HVH6 AS PROPOSED HAPPY VALLEY NO. 6 GRID N: 2189634.214 GRID E: 227900.113 LATITUDE: 59°59'07.350"N LONGITUDE: 151°29'08.989"W ELEV. 716' PROPOSED HAPPY VALLEY NO. 6 WELL SURFACE LOCA TlON ~ ::r -' en u.. ÌX> co o ~ SECTION 22 TOWNSHIP 2 SOUTH RANGE 13 WEST SEWARD MERIDIAN ALASKA SEC 22 SEC 23 SEC 27 SEC 26 &[P[P[bO@&[?:!]VB UNDI:AL 8011 1r. 8th A_ e Anohorq.. AX 99519-7885 HAPPY VALLEY NO. 6 WELL SURFACE LOCATION. NINILCHIK. AK P.C. !:Icx 41:>S SCLDIJTNA, All< ~9669 Project: MSOl1 C0ü15UtHü1g C; roup T €5t~ü1g RevJadoœ: l"EL 9g7.~8:3.4~H!I FAX 9g7.~a:3.:3~6S Dwa:048011 Date: 2/28/04 FIGURE: 1 8 9 17 3 24 26 25 DEEP CREEK UNIT HAPPY VAllEY 6 N Â 0.5 0.25 0 0.5 Alaska State Plane Zone 4, NAD27 Happy Vall~y#6GENERALPROCEDURE HAPPY V ALLEY #6 PLAN DAYS VERSUS DEPTH .-.- ....,t....t_v......~ ¡.7UV ,......; """,,,",,t v . Locatìbn: X=227,900.113 E, Y=2,189,634.214N Lat: 59° 59' 07.350" N, Long: 151029' 08.989" W 1088' FSL, 1363' FEL, Sec22, T2S, R13W, S.M. Planned TD 13,800' MD /11,500' VD Static BHT = 36.8°F + (0.0136 x TVD) Job Template #1 REVISED: 03/02/04 DRAWN BY: JFB CASING DESIGN WELL: Happy Valley #6 FIELD: So. Kenai Sect. 1 MUD WT. 9.3 PPG MASP= 763 psi" Sect. 2 MUD WT. 9.2 PPG MASP= 3.636 psi Sect. 3 MUD WT. 9.5 PPG MASP= 3,636 psi INTERVAL CASING SIZE BOTTOM TOP LENGTH Y'iL 9-516" 1037 0 1037 40 TVD 1000 0 2 7" 4100 0 4100 26 TVD 4100 0 3 3·1/2" 12600 0 12600 9.2 TVD 11383 0 DATE: 2-Mar-04 DESIGN BY: Jerry Bowen / TENSION MINIMUM COLLAPSE COLLAPSE / WEIGHT TOP OF STRENGTH PRESS @ RESIST. ,/ DESCRIPTION WIOBF SECTION TENSION ./ BOTTOM wlo TENSION GRADE THREAD ~ LBS 1000 LBS SF TENSION PSI' f§! SF COLL. L-60 BTC 41460 41460 979 23.60 440 3090 7,02 L-60 BTC-mod 106600 61,000 667 8.23 1604 5410 3.00 L-60 IBT-mod 117760 67,000 207 2.38 5009 10530 2.10 " See attached sheet for calculation of MASP , Collapse pressure is calculated; Normal Pressure Fluid Gradient for external stress (.44 psVft) and the casing evacuated for the internal stress (0 psi/ft) MINIMUM MASP YIELD ",. f§!:: PSI SF BURST 763 5750 7.54 · 3636 7240 1.89 3636 10160 2.65 · · · . . . . Maximum Anticipated Suñace Pressure Calculation & Verification of 7" Casing Design Happy Valley Well #3 Kenai Peninsula, Alaska Assumptions: . ~ \¡JGA- 1. Based on offset drilling & well test data, the pore pressure gradient is predicted to be a ~i/ft gradient from surface to planned total depth at 11,383' VD BRT. Unocal has drilled two wels to 9700' VD on this pad, and has reviewed data from three other deeper wells within a 2.5 mile radius (NNA #1, HV #31-22 & Deep Creek Unit #1). 2. The M.A.S.P. during drilling operations will be governed by the 7" shoe frac gradient, and is calculated based on a full column of gas between the 7" shoe and the surface. The shoes for HV #3 will be at the same depth as the shoes in HV #1, thus the LOT data from HV #1 is useful for relatively accurate kick tolerance & MASP calculations. 3. The MAS.P. during production operations will be the estimated SIBHP minus the gas hydrostatic pressure between TD & the surface. The 7" intermediate casing must be designed to handle a potential burst load case based on a shallow leak in the 3 1/2" pipe early in the life of a 11,383' VD gas completion (i.e. before reservoir pressure declines). M.A.S.P. Calculation During Production Phase: Max. pore pressure at T.D. = 11500 ' VD x ( GJ' = 4980 psi MAS.P. (tbg leak at surface) = 4980 psi - (0.096 psi/ft * 11500 ft) = = ¿aiý psi MAS.P. Calculation During Drilling Phase: Est. Frac pressure at 7" shoe 4016 ft. x 0.904 psilft = = 3630 psi MAS.P. during drilling = 3630 psi - (.08 psi/ft x 4016 ft.) = = 3309 psi Casing Design Verification A. Triaxial Stress Calculation - 7" Intermediate Casing at Suñace - M.A.S.P. During Production Phase VMe = (1/(2°·5))*«(6t-6a)2)+«6a-6/)+«6,-6i))O.5 Where; 6a = «Axial Load [lbs.])/«TT/4)(OD2 - IDma/))) ± «Dg*D*E)/137510) 61 = «PtIDma/)-(Po*OD2))/(OD2-IDma/) + «(p¡-Po)*(OD2)*(IDma/))/«D2)*«OD2)-(IDma/)))) 6r = «PtIDma/)-(P o*OD2))/(OD2-IDma/) - «(P,P o)*(OD2)*(IDma/))/«D2)*«OD2)-(IDma/)))) Nomenclature: VMe = Von Misies equivalent triaxial stress, psi 6a = Axial stress, psi (due to load) 61 = Transverse (hoop) stress, psi 6, = Radial stress, psi . . . . OD = Outside Diameter of pipe, inches IDmax = Maximum inside diameter of pipe, inches (usually OD-1. 75 w.t.) D = Diameter of interest, inches (worst case = IDmax in this case) E = Modulus of elasticity (30 x 106 psi) Dg = Dogleg, °/100' (assumed 0°/100' at surface) p¡ = Internal Pressure, psi Po = External Pressure, psi Solution: 6a = ((Axial Load [lbs.])/((TT/4)(OD2 - 1Dma/))) ± ((Dg*D*E)/137510) 6a = ((81000)/( (TT/4 )(72)-(6.36652»» ± ((0*6.3665*30x1 06)/13751 0) 6a = 12,179.90 psi 6, = ((PtIDma/)-(Po*OD2»/(OD2-IDma/) + (((p¡-Po)*(OD2)*(IDma/»/((D2)*((OD2)-(IDma/))) 6, = ((3876*6.2862)-(0*72»/(72-6.36652) + (((3876-0)*(72)*(6.2862»/((6.2862)*((72)-(6.2862»» 6, = 40,982.58 psi 6r = ((PtIDma/)-(Po*OD2»/(OD2-IDma/) - (((p¡-Po)*(OD2)*(IDma/»/((D2)*((OD2)-(IDma/»» 6r = ((3876*6.3665)-(0*72»/(72-6.36652) - (((3876-0)*(72)*(6.36652»/((6.36652)*((72)-(6.36652)))) 6r = -3,876.00 psi VMe = (1/(2°.5»*(( (6,-6a)2)+( (6a-6i)+( (6r-6J2) )0.5 VMe = (1/(2°·5»*(((40643-12180)2)+((12180-(-3876.00»2)+(((-3876)-40643)2»0.5 VMe = 39,050.47 psi The calculated maximum theoretical VMe triaxial stress of approximately 39,050 psi, which occurs in the Production Tubing Leak Load Case, compares favorably with the planned 7" 26 ppf L-80 material, which has a yield strength of 80,000 psi. The overall VMe design factor is 2.05. The MAS.P. of 3876 psi compares favorably to the burst rating of 7,240 psi. The joint strength of 667 kips compares favorably to the anticipated slip load of 81 kips. As an addiitonal back-up, the 9 5/8" 40 ppf N-80 surface casing has a burst rating of 5750 psi and a joint strength of 979 kips. All wellhead components are rated to 5000 psi working pressure, with the exception of the X-mas tree which is rated to 6500 psi working pressure. Tie-In 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 2533.128 2585.648 2638.168 2690.688 2743.208 2795.728 2848.248 2900.768 2953.278 3005.798 3058.318 .838 .358 .878 .398 .918 .438 .958 .478 3530.998 3583.518 3636.038 3688.558 3741.078 3793.598 3846.118 3898.638 3951.158 4003.668 4056.188 4108.708 4161.228 4213.748 4266.268 788 4371.308 4423.828 4426.418 4478.408 4529.318 4579.138 7.858 4675.458 4721.925 4767.248 4811.405 4854.388 175 4936.765 4976.148 5014.295 5051.215 5086.888 5121.288 5154.425 5186.288 5216.858 5246.128 5274.088 5300.738 5326.058 5350.038 5372.698 5393.998 5413.948 5432.535 5449.768 5465.625 5480.108 5492.778 ¢:: 0 0 -800 "<t II / E u RKB Elevation: 738.5' 0 Q) ro u rn 800 .J l 9 5IBin Casing KOP 1800 6.00 12.00 DLS: 2.00 deg/10 2400 24.00 32.00 40.00 3200 EOC - - 4000 CI) .! - .s:::. 4800 - Q. CI) C 5600 CIS U :e CI) 6400 > CI) ~ 7200 ... .... . V aooo 8800 9600 10400 11200 12000 12800 . . . . UNOCAL Rií. BAKIR HUGHIS INTEQ UNOCALe Location: Kenai Peninsula, Alaska Field: South Kenai Gas Field Installation: Happy Valley Slot: HV #6 Well: Happy Valley#6 Well bore: HV#6 Ver3 Created by: PIamer Date plotted: 26-Feb-2004 Plot reference is HV#6 Ver3. Ref wellpath is Happy Valley#6 (PWP#1). Coordinates are in feet reference HV #6. True Vertical Depths are reference Rig Datum. Measured Depths are reference Rig Datum. Rig Datum: Kuukpik #5 RKB Rig Datum to mean sea level: 738.50 It. Plot North is aligned to TRUE North. WELL PROFILE DATA Point MD Inc Azi TVD North East deg/100ft V. Sect Tie on 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 KOP 1200.00 0.00 0.00 1200.00 0.00 0.00 0.00 0.00 Of! End of BuildfTum 3245.13 40.90 216.67 3075.79 -561.08 -417.74 2.00 699.51 Target HV#6 Top T70 Ta 10604.93 40.90 216.67 8638.50 -4426.41 -3295.61 0.00 5518.53 T.D. & End of Drop 13801.48 8.94 216.67 11500.00 -5492.77 -4089.56 1.00 6848.00 Top Upper Tyonek T-5Q Marker HV#6 Top T70 Target Begin Drop T-70 Sand Series 34.90 30.90 22.90 19.90 16.90 13.90 h 10.90 -800 -0 800 1800 2400 3200 4000 4800 5600 6400 Scale 1 em = 400 ft Vertical Section (feet) -> Azimuth 216.46 with reference 0.00 N, 0.00 E from HV #6 7200 aooo UNOCAL ... -=-.... INTEQ Location: Field: Installation: Kenai Peninsula, Alaska South Kenai Gas Field Happy Valley Slot: Well: Wellbore: Scale 1 cm = 200 ft -5200 -4800 -4400 -4000 -3600 -3200 East (feet\ -> -2800 -241>0 -2'000 -1600 ~ ~ ~. rV T -50 Marker ~¡ TO - Casing pt. HV#6 Happy Valley#6 HV#6 Ver3 UNOCALe Created by : Planner Date plotted: 26-Feb-2004 Plot reference is HV#6 Ver3. Ref wellpath is Happy Valley#6 (PWP#1). Coordinates are in feet reference HV #6. True Vertical Depths are reference Rig Datum. Measured Depths are reference Rig Datum. Rig Datum: Kuukpik #5 RKB Rig Datum to mean sea level: 738.50 ft. Plot North is aligned to TRUE North. -1200 -800 o -400 9 5/8in Casing ~¡ 7.000in Casing Top Upper Tyonek 400 400 0 -400 -800 -1200 -1600 -2000 -2400 ^ I Z 0 -2800 ;:¡. :r - i' -3200 !. - -3600 -4000 -4400 -4800 -5200 en 0 Q) ã) -5600 0 3 II -6000 I\) 0 0 ;:> . . . . s. Kenai Gas project Happy Valley #6 7" SHOE DESIGN / SUMMARY & SKETCH UNOCAL. METHOD 2: -I'"- - 9-5/8" shoe 1,015 ft BML....,¡ (1,037 ft TVD) \ 1 \ I \ I \ 8-1/2" Hole I \ 1 \ 1 \ 1 \ 1 \ I - mdb/01decOO DESIGN DOWN: MW :: 9.2 PPG Pform :: 9.2 PPG EMW KT:: 10 BBlS at 0 PPG FG:: 0.7 PSI/FT Gas Gradient:: 0.05 PSI/FT Drill Pipe:: 4 INCH - I .. The deepest 8-1/2 in hole that can be drilled = 4,080 ft BML or 4,102 ft TVD RT - MSL :: 22.5 ft WD = 0 ft with 0.447 PSI/FT Gradient 9-5/8" shoe ....,¡ The shallowest 7 "shoe depth = 3,906 ft BML or 3,929 ft TVD .... \ 1 \ I \ 1 \ 1 \ 1 \ 6-1/8" Hole I \ 1 \ I \ 1 \ TD = 11,478 ft BML or 11,500 ft TVD 1 ... METHOD 1: - - 1 DESIGN UP: MW = 9.5 PPG Pform :: 10 PPG EMW KT = 10 BBLS at 0.5 PPG FG = 0.7 PSI/FT Gas Gradient:: 0.02 PSI/FT Drill Pipe:: 4 INCH - 2000 Pressure vs Volume 1800 1600 1400 1200 î ~ 1000 : e II. 800 600 PSI PSI 400 PSI 200 4,325 FT 4,023 FT 1.00 0.50 1.50 2.00 2.50 3.00 4,334 FT Volume (BBLs) 4,024 FT Oil-Base 9.45 PPG Pressure vs Time 0.25 BBLS 0.25 BPM 2000 1.660 PSI LOT 1800 17.39 PPG 1600 FT 1400 FT 1200 1000 800 600 400 200 5.0 10.0 1M 20.0 2M 30.0 Time (Minutes) LOT HV#1 7 inch SHOE.xls 312120043:37 PM 600 Pressure vs Volume 500 400 ! ~ 300 æ e II. 200 PSI PSI PSI 100 1,037 FT 1,037 FT 0.50 1.00 1.50 2.00 2.50 1,048 FT Volume (BBls) 1,048 FT Oil-Base 9.10 PPG Pressure V$ Time 0.25 BBLS 0.25 BPM 600 403 PSI LOT 500 400 ! i 300 ~ II. 200 100 LOT HV#1 9.625 SHOE.xls 5.0 10.0 15.Q Time {Minutø:s} 20.0 25.0 30.0 3/2120043:38 PM . . . . Leak Off Test (LOT) Procedure Revised: 04-04-03 by JFB UNOCAL Alaska 1. Drill out shoe track, clean out rathole, & make 20' of new hole. / 2. Circulate bottoms up on shallow shoes. Note on report if 50' of new hole was sand or shale. 3. Have mud weight even in & out on all LOT's. Pump the same mud that is being circulated through the kill & choke lines. 4. Install calibrated gauges & recorders on standpipe & choke manifold. Gauges should be as low pressure as possible, Le., 300 psi for first shoe. 5. Rig up cement line to the drill pipe. 6. Pressure test cement line from the cement unit to the drill pipe valve to 250 psi low / 3000 psi high. 6. Close pipe rams. 7. Break circulation through choke manifold. Close choke. 8. Pump mud down the drill pipe at % bpm. 9. Record the drillpipe pressure & the annulus pressure every % bbl. 10. Stop pumping after 1 bbl has been pumped at injection pressure (ie, 4 data points) 10. Record instant shut-in pressures, pressures after 10 seconds, & pressures every one minute for three minutes. 11. Bleed off annulus & open rams. 11. Plot drill pipe pressure & casing pressure vs. bbls pumped using the latest version of the Unocal LOT program. Note: The pressure to be used for calculating the LOT is the 10 second shut-in pressure on the casing gauge. Drill ahead if LOT is acceptable, squeeze shoe if it is not. LOT Procedure. doc Page 1 of 1 03/02/04--3:13 PM . . . . Cement Volume Calculation Happy Valley Well #3 Kenai Peninsula, Alaska Assumptions: 1. The 9 S/8" surface casing must be cemented to surface, to provide maximum; (a.) structural stability, (b.) long term well control security, and (c.) protection of fresh water sands. Based on experience with HV #1, #2, & #3, using the KCL-WBM, the volume calculation below assumes 20% excess slurry will be required ensure cement returns to surface. 2. The 7" intermediate casing cement volume will be based on a cement top at the 9 S/8" shoe. Based on experience with HV #3, #4 & #S, with the KCL-WBM, the calculation below assumes 20% excess cement is /" required. 3. Assuming a gas discovery is made, the 31/2" primary cement volume will be calculated based on a cement top approximately 500 to 1000' above the highest commercial gas sand, or at the 7" shoe, whichever /" is lower. The following calculation assumes a cement top at 4100' MD, with 10% excess vOlume./However, the actual cement volume will be determined based on an analysis of the open hole logs. 95/8" Suñace Casing: Openhole volume = Conductor Volume = Shoe Track Volume = Total slurry volume = Lead Slurry Volume = 11.43 + «(12.2S)^2-(9.62S)^2)*3.1417/4/144/S.61 *S87*1.2) = Tail Slurry Volume = 3.04 + «((12.2S)^2-(9.62S)^2)*3.1417/4/144/Si6. * .. 0*1.2) = Lead Slurry: Class 'H' w/3% gel at 12.8 ppg yield: 1. .' Tail Slurry: Class 'H' at 1S.8 ~ yield: ,1 . Lead sacks = ~ sx Tail sacks = ((12.2S)^2-(9.62S)^2)*3.1417/4/144/S.61 *937*1.2 = «14.S)^2-(9.62S)^2)*3.1417/4/144/S.61*100 = «(8.835)^2)*3.1417/4/144/S.61 *40 = 62.77 11.43 3.04 77.24 50.76 26.49 ft3/sk ~ CW 7" Intermediate Casing: Open hole volume = Shoe Track Volume = Total slurry volume = Lead Slurry Volume = «8.S)^2-(7)^2)*3.1417/4/144/S.61*(4S16-1037-S00)*1.2 = Tail Slurry Volume = 1.S3 + (((8.S)^2-(7)^2)*3.1417/4/144/S.61 *SOO*1.2) = Lead Slurry: Class 'H' w/3% gel at 12.8 ppg yield: 1.98 Tail Slurry: Class 'H' at 1S.8 ppg yield: 1.17 Lead sacks = 229 sx Tail sacks = ((8.S)^2-(7)^2)*3.1417/4/144/S.61*(4S16-1037)*1.2 = «(6.276)^2)*3.1417/4/144/S.61 *40 = 94.37 1.53 95.90 80.81 15.10 ft3/sk ft3/sk 72 3 1/2" Production Casing: bbls bbls bbls bbls bbls bbls sx 'bbls bbls bbls bbls bbls sx Note: Actual cement volume will be based on TOC +/-SOO' above the shallowest hydrocarbon bearing sand. The following volume calculation is based on TOC at the 7" shoe. Openhole volume = «6.12S)^2-(3.S)^2)*3.1417/4/144/S.61 *(13800-4S16)*1.1 = 250.86 bbls J . . . . Shoe Track Volume = ((2.992)^2)*3.1417/4/144/5.61 *30 = Total slurry volume = Tail Slurry: LiteCrete mixed at 12.0 ppg yield: 2.29 Total sacks = 0.26 251.12 ft3/sk 615 bbls bbls sx Contingencies: 1. Emergency slips for 3 1/2" tubing and 7" intermediate casing will be on location in case either string sticks with the hanger not landed, i.e. while reciprocating or while running in the hole. 2. If returns are lost during the 9 5/8" surface casing cement job, or if cement is not circulated to surface, it /' will be necessary to perform a top up job inside the 9 5/8" x 13 3/8" annulus. This would be necessary to I' obtain a competent pressure seal below the 13 3/8" starter head and to ensure mechanical stability at surface (i.e. for future HWOU operations, etc.). 3. No contingency is required in the event returns are lost during the 7" intermediate casing cement job, provided an adequate shoe exists to drill ahead. If the 7" shoe leak-off test yields unacceptable results, and if this is determined to be due to lost returns while cementing, the 7" shoe can be squeezed and re-tested. 4. Lost returns during the 3 1/2" primary cement job potentially could lead to a loss of reserves, but will not result in a safety problem due to the depth of the 7" shoe and the presence of the 3 1/2" x 7" packer /~ positioned approximately 100' above the 7" shoe. Should it become necessary, coil tubing could be utilized10 block squeeze any potentially productive intervals not covered by the primary cement. Note: Should the 31/2" x 7" annulus fail to pressure test, after the cement has had time to setup, it is ~ proposed that the situation should be discussed with the AOGCC and a mutually agreeable course of action woould be determined prior to perforating for production or for testing. The proposed minimum test pressure would be 500 psi above the 7" shoe leak-off test pressure, adjusted for differences in fluid density. 22'6" or 270" Ground level / , , ~. : 24": , , .... 25.5" AGl ... -----11---------------------------- Finish 16" Cut 72' below grade 11" 5M MBS ./ Wellhead ~ 9 5/8" Hanger Starter Head Top Up Ports --------------------------------- 16" x 0.5" 60 ksi ~ Conductor (driven) 2" thick base alate 8' 0" Note: Top of lower Master Valve (or temporary cap) must be <2' AGl to skid derrick. .... 75" 38" 25" 24' 17' or 204" 2' Skid Base 1 (" M.t· ~ S' or 96" ----- ---------1---- 24" ----...---- --~ , þ~ : 24" : , . To Shaker 3" Panic ToGas buster t Automatic Choke Inlet 3" 5,000 PSI Choke IVBnifold Kuukpik Drilling Rig 5 . . Happy Valley Cuttings Disposal Description for Permit to Drill The drilling muds and cuttings from the Happy Valley #3,4,5, and 6 Well will be ground and injected into the NNA #1 annulus, into the perforations in the tubing in accordance with an AOGCC approved test plan for the perforations in the tubing, or into the tubing and perforations of the NNA #1 Well should that well achieve permitted Class II injection status during the Happy Valley drilling operations. Permission for the annular disposal has already been secured from the Alaska Oil and Gas Conservation Commission (AOGCC) and is being currently sought for the tubing-related disposal options. The cuttings will be transported to the NNA # 1 pad with the grinding to occur at the NNA#l pad. Unocal Alaska does not intend at this time to request authorization under 20 AAC 25.080 for an annular disposal operation in the Happy Valley #3,4,5, or 6 well. In the event that a problem develops such that Unocal is unable to inject drilling waste into the NNA #1 well the possibility exists that Unocal may then request authorization for annular disposal into one or more of the other Happy Valley Wells. Dee Creek Salinit Calculations M 15·2S-13W 15-2S-13W 15·2S-13W 15-2S-13W 15-2S-13W Deep Creek Unit #1 $alinity Calculations Happy Valley Area udweights c > ....... 11.8 I Haìliburton BAROID . UNOCAL . Mud Program ! BA~OIO UNOCAL Happy Valley #6 Kenai Peninsula, Alaska Baroid Mud Program Halliburton Baroid Name (Printed) Signature Date Originator Dave Higbie Reviewed by Don Shaw / John Rose Customer Approval Rob Stinson Version No: Date: 1.0 March 02, 2004 HV #6 v1.0 03/02//04 I HaÎliburton BAROID . UNOCAL . Mud Program !:!!ID>v Vallev Producers Introduction: The following mud program was prepared for a deviated well accessing the Tyonek gas sands as part of the Happy Valley development program on the Kenai Peninsula, Alaska. This well will be spudded with a 6% KCI drilling fluid and drilled vertically to the 1,037' MD range. It will be drilled with in a 12 W' hole size and cemented. The surface casing will be drilled out with the existing mud system. The 8 W' interval will then be drilled building to 41° angle by section TD at -4,517 MD'. Seven inch casing will be run and cemented at this depth. The 7" will be drilled out and a leak off performed with the water base system. The well will then be displaced to an INVERMUL system using #4 diesel as the base oil which will be used to drill the production hole. A 6 1/8" hole will be directionally drilled dropping to 9° by TD at 13,800' MD (-11,500' TVD). A 3 W' production liner will then be run and cemented in place. Spud the well with a 6% KCI/PHPA mud - 8.6 ppg. The mud weight will then be held in the 8.6 - 8.9 ppg mud weight range to the surface hole TD unless hole conditions dictate otherwise. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity for efficient hole cleaning. This spud mud is formulated with two mechanisms to provide waste minimization and effective well bore stabilization, ionic inhibition (KCI),and polymer encapsulation (PHPA). This same 6% KCI/PHPA mud will be maintained through the intermediate interval. This mud offers good LCM responses if losses are encountered. Special emphasis should be placed on maintaining low ECD's and surge/swab pressures to minimize the potential for lost circulation. The production interval will begin with an 80/20 OWR (if available) used oil base fluid. The ratio will then slowly be raised to 90/10 by 10,000' to reduce rheological parameters. CaCI levels will be maintained in the 28-31 % (280,000 - 310,000 ppm WPS) range. The mud weight will be held in the 9.2 -9.6 ppg range or as required for hole stability. Primary Drillina Obiectives: · Zero fluid related HSE incidents · Achieve well bore stability · Achieve good hole cleaning considering hole angle, geometry and anticipated ROP rates · Lost circulation mitigation/control · Achieve good Zonal Isolation as per plan · Achieve minimal formation damage in Tyonek sands · Minimize fluids related NPT · Minimize drilling wastes Critical Fluid Issues: · Eliminating/controlling losses in the 1,700' area. · Maintaining a low ECD in the production zone to reduce risk of lost returns. · Maintaining a stable well bore through coal seams. · Reducing drilling wastes with the inhibited drilling fluid system. HV#6 v1.0 2 03/02//04 . HaÎliburton BAROID Well Specifics: UNOCAL Mud Program Casing Program MD TVD Footaae HV#3 12 ~" hole (9 5/8" casing) -1037' 1037' 1037' 8 W' hole ( 7 " casing) -4517' 4016' 2979' 6 1/8" Hole (3 W' liner) 13,800' 11,500' 9283' Suñace Hole Recommendations Mud Type: 6°.loKCI, EZ Mud P rf rope les: Densitv Viscosity Plastic Viscosity Yield Point APIFL e!! 0-1037' 8.6-8.9 60 - 85 6 -16 25 - 40 N/C 8.5-9.0 System Formulation: 6%KCI, EZ Mud Product Concentration Water 0.905 bbl KCI 20 ppb (30K chlorides) KOH 0.2 ppb (9 pH) Barazan D 1.25-1.5 ppb (as required 35 YP) EZ Mud DP 0.75 ppb Aldacide G 0.1 ppb Baracor 700 1 ppb Barascav D 0.5 ppb (add as the well spuds) Special Mixing Instructions: . Mix in order as listed . Add polymers slowly to minimize fisheyes. Concerns and Continaencies Surface Interval - ( 0 - 1,037' MD ) Mud Tvpe: 1. Mud weight: 2. Rheology: 3. Filtrate control: 6 % KCI/PHPA Maintain the 8.6 - 8.9 ppg density or as directed. Maintain a YP between 25 - 40 or as needed to achieve adequate hole cleaning.. No filtrate control is required prior to reaching 1370' MD. Additions BOF-263 may be required to control screen blinding/bit balling. Seepage losses in this interval can be controlled with additions of 3-5 ppb BAROFIBRE or by dedicated LCM pills but are unlikely to occur. Operations Summary: This section will drill a 12 "X" hole. Build the 6% KCI fluid in the proper order of addition. Always maintain a reduced pit volume during spud as losses are not expected in this section. Be prepared for sloughing gravels in the upper interval; increasing the system rheology with BARAZAN-D will assist in bringing this material out of the well, as will pumping dedicated high-viscosity sweeps. It is recommended that the pump rate be increased to the maximum practical rate while the hole is unloading gravel. Sweep Formulation: 30 barrels mud (500' annular coverage), add ca. 1.0 ppb BARAZAN 0 to achieve a tauO > 25. HV #6 v1.0 3 03/02//04 . . 'I HaÎliburton BAROID UNOCAL Mud Program I When penetrating high-clay content sections additions of BDF-263 ester are recommended to reduce the incidence of bit balling and shaker blinding. Be prepared to increase the YP if hole cleaning becomes an issue. Run DFG (Drilling Fluid Graphics) to confirm hole cleaning efficiency based on current rheology, flow rates and cuttings size. At TD, a Wallnut "flag" (20 bbl pill with 15 ppb of Wall nut M) should be pumped to gauge hole washout and to calculate the required cement volume. The cement will then be pumped and drilling mud will be used to bump the plug. Pretreat this chase mud with 1 ppb Bicarb and 0.5 ppb citric acid. Hazards I Concerns - Surface Interval: · Preventing lost circulation through ECD management. · Optimize solids control equipment to maintain density, sand content, and reduce the waste stream. · Maintain YP between 25 - 40 to optimize hole cleaning and to control ECD. · Pump high viscosity sweeps to enhance hole-cleaning efforts. Monitor sweep effectiveness. · Successfully cement casing. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM- 450 550 650 80 rpm 182 246 271 100 rpm 182 246 271 Baroid's recommended flowrate for this interval is 525-575 gpm to maximize hole cleaning at high penetration rates. RPM's have no effect on hole cleaning in this vertical section. Intermediate Hole Recommendations Mud Type: 6%KCI, EZ Mud P rf rope les: Densitv Viscosity Plastic Viscosity Yield Point API FL Iili 1,037 - 1500' 8.7 -8.9 40-53 6 -15 13 - 20 N/C 8.5-9.0 1500 - 4,517' 8.8-9.2 40-50 6 - 15 13 - 20 8-10 8.5-9.0 System Formulation: Product Water KCI KOH Barazan D Dextrid EZ Mud DP Aldacide G Baracor 700 Barascav D 6%KCI, EZ Mud Concentration 0.905 bbl 19.8 ppb (30K chlorides) 0.2 ppb (9 pH) 1.25 ppb (as required 35 YP) 1-2 ppb 0.75 ppb 0.1 ppb 1 ppb 0.5 b maintain er dilution rate Special Mixing Instructions: . Mix in order as listed . Add polymers slowly to minimize fisheyes. HV#6 v1.0 4 03/02/104 · HaÎliburton BAROID UNOCAL Concerns and Continaencies Mud Program Intermediate Interval - ( 1037 - 4517' MD ) Mud Tvpe: 6 % KCI/PHPA 1. Mud weight: 2. Rheology: 3. Filtrate control: Maintain the 8.8 - 8.9 ppg density or as directed. Maintain a YP between 13-20 or as needed to achieve adequate hole cleaning. No filtrate control is required prior to reaching 1500' MD. At this point add Dextrid and/or Pac L to reduce filtrate to the 8-10 cc/30 min range. Additions of BDF-263 may be required to control screen blinding/BHA balling. Losses in this interval can be controlled with additions of 1-2 ppb BAROFIBRE and 1-2 ppb of Baracarb 50 or by dedicated LCM pills; see appendix for LCM decision tree. Operations Summary: Drill out the cement/casing with the existing mud system. Bicarb or soda ash and citric acid should be used to pretreat for any negative effects of the cement. BARAZAN-D should be used to maintain rheological parameters. Maintain the mud as clean as possible while drilling. Should sweeps be required a BAROLlFT sweep is recommended (check with the G&I plant to ensure compatability). This sweep will help clean the hole with no neaative impacts on system mud weiaht or rheoloav. Daily additions of X-Cide 207 should be made to control bacterial action. Sweep Formulation: 25 bbl of mud with .25 ppb of Barolift added. Shear thouroughly prior to pumping. Dextrid and/or PAC L should be used for filtrate control past 1,500'. While drilling, monitor the torque and drag to determine if liquid lubricant is required. When penetrating high-clay content sections additions of BDF-263 ester are recommended to reduce the incidence of bit balling and shaker blinding. Maintain the pH in the 8.5 - 9.0 range with caustic soda. By -1500' TVD the system rheology may be relaxed as hole conditions allow. This will also lower the ECD for the loss zone found -1,700' TVD. However, be prepared to increase the YP if hole cleaning becomes an issue. Run DFG (Drilling Fluid Graphics) to confirm hole cleaning efficiency based on current rheology, flow rates, angle and cuttings size. At 1,650' begin stringing in 1-2 ppb of BAROFIBRE and 1-2 ppb of Baracarb 50 (10-15 sxlhr each). This material will help seal any mini fractures or small vugs as they are drilled. Premixing -60 sx of Baracarb 50 and Barofibre in the "coil" tank and then stringing this mixture in has worked well on HV 3,4 and 5. This treatment should be maintained until -1,850'. Also, ensure that the mud weight is maintained as low as possible through this area. Stress slow pipe movement to the drillers to reduce surge/swab on this fragile zone. Stage pumps on slowlv after connections and begin rotation prior to pumping (this will break the gels and reduce the pressure required to break the gels). Should all these efforts fail and losses occur, please refer to the LCM decision tree appendix. If the losses are still high (above 30 bbl/hr static) after attempting an LCM pill, STOP running the fluid as a KCI/EZ Mud system. All additions of these products should be halted and allow the system to slowly break back to an LSND system. Run the fluid loss and rheology as with the inhibited system. When running the LSND, stop addtions of Baracor and Barascav D when the chlorides drop below 6,000 ppm's. If any trips are required, consider spotting a 20 bbl, 20 ppb pill across the 1,700' zone. The pill should consist of base mud with 10 ppb Baracarb 50 and 10 ppb STEELSEAL added. This pill would reduce the effects of tripping back in and allow time for the LCM to "soak" into the zone. STEELSEAL and Baracarb will not dehydrate the mud which will allow for lower ECD's on the first bottoms up after TIH. HV #6 v1.0 5 03/02//04 . . I Halliburton SAROID UNOCAL Mud Program Maximum Acceptable ROP in fph at Specified GPM and RPM 500 550 600 103 110 128 100 r m 133 148 162 Baroid recommends a flowrate in the 550-600 gpm range to maximize hole cleaning efficiencies at these high penetration rates. There is a large drop in efficiency if the rpm drops from 100 to 80. However if losses occur, the flow rate can be reduced in conjunction with a slower penetration rate which would reduce the ECD/losses. Reduce system YP with Therma Thin as required for running casing as allowed (do not jeopardize hole conditions). Run casing carefully to minimize surge and swab pressures. Reduce the system rheology once the casing is landed to a YP < 20 ( check with the cementers to see what yp value they have targeted). Consider spotting the above Steelseal LCM pill prior to running the 7" casing if losses have been seen in this interval. The plug will again be bumped with mud on the well. If operations allow, the plug can be bumped with OBM. Hazards I Concerns -Intermediate Interval: . Preventing lost circulation in the 1,700' range. · Optimize solids control equipment to maintain density and sand content. · Maintain YP between 13-20 to optimize hole cleaning and to control ECD. · Pump high viscosity or Barclift sweeps to enhance hole-cleaning efforts. Monitor sweep effectiveness. . Successfully land and cement casing. Production Hole Recommendations Mud Type: Invermul System I #4 Diesel Mud P rt" rope les Densitv Viscosity PV YP ES HTHP FL WPS O/W 4,517 -10,000 9.9r .6* 45 - 60 18 - 29 11-20 1000- <8 280 to 310K 80/20 1100 10,000- TD ~ 45 - 60 18 -29 11 - 20 1 000- <5 280 to 310K 90/10 1100 * - Additional mud weight may be required for effective coal or shale stabilization. System Formulation Product #4 Diesel EZ MUL NT INVERMUL GEL TONE V Lime DU RATON E RM63 Water CaCI2 AK-70 BAROID Concentration 0.696 bbl 4 ppb 4 ppb 4 ppb 5 ppb 4 ppb 1 ppb 0.178 bbl 24.6 ppb 4 ppb 77 b to a 9.4 HV #6 v1.0 6 03/02//04 . ., HaÎliburton BAROID UNOCAL Concerns and Continaencies . Mud Program Production Interval (6 1/8" hole. 3.5" casinQ ): 4517' MD - TD Mud Type: 1. Mud weight: 9.2 ppg INVERMUU#4 Diesel System. 2. Rheology: Maintain the density at 9.2 ppg or as directed; use solids control and whole mud dilution. Increase density as required for hole stability/coal sloughing. Maximize solids control usage. Maintain a YP between 11 and 20. Pump high viscosity or Barolift sweeps throughout the interval as needed, particularly prior to POH for casing. Optimized mud rheology and flow rate will be the primary mechanisms for achieving hole cleaning in this deviated wellbore. Maximize pipe rotation (ideally ~ 80 RPM). 3. Other issues: The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses and differential sticking. By 10,000 feet reduce the HTHP to < 5 cc 30 min with DURATONE HT/AK-70 treatments. Please see the Coal Drilling recommendations attachment. Operations Summary: The water base mud system will be used to drill out the shoe and ca. 20 feet of new hole (unless operations can be worked out to bump the plug with the Invermul). Approximately 600 bbls of oil mud will be required for displacement. If used mud is available, it will be reconditioned at the rig and displaced into the well bore. Prepare the pit system for the INVERMUL as follows: · Clean pits, solids control equipment, all lines and pumps. · Flush all lines with a small volume of oil and discard. · Disconnect all water lines to the pit area and rig floor. . Check all steam fittings in pit room for leaks and repair as needed. Once the shoe has been drilled, displace the well to the ENVIROMUL system designated for this interval of the well. Pump a 25 bbl spacer ahead of the oil mud as follows: Spacer Formulation: · 20 barrels of the OBM treated with 8 ppb of EZ MUL-NT and viscosify with GEL TONE to a YP > 30. Consider weighting this pill to 2 ppg over the OBM weight. . Follow with INVERMUL mud system. Displacement procedure: · Monitor pump strokes to obtain correct displacement. · Maintain maximum pump rates. · Have the bit on bottom as the oil mud exits the bit. · Reciprocate the drill string by one joint every 15 minutes · Rotate the pipe as rapidly as allowed during the actual displacement. · Do not shut down during the displacement. · Use an E.S. meter at the flow line to determine when the fluid is water free enough to start taking the returns back into the system. An ES of 300-500 should be sufficient to indicate when displacement is complete. A retort should also be run at this time to confirm fluid quality. . Clean possum belly and any troughs which were used. Maintenance: 1. Additions of Geltone V and RM-63 will maintain/modify the system rheology to a YP between 11 and 20 to provide effective hole cleaning while controlling ECD and surge/swab pressures. Run the rheology HV #6 v1.0 7 03/02//04 . (I Haíliburton BAROID UNOCAL checks at flowline temp until -6800' then at 120°F to TD. to the rheology the hole is experiencing. . Mud Program This will give a more accurate reflection as 2. OMC 2 and OMC 42 will be available to condition (thin) the mud as required; however, caution should be used when using these oil mud thinners (particularly the OMC-2) to avoid over-thinning the system. 3. Drill this interval with a tight DURATONE HT / AK-70 filtration mechanism « 8 cc/30 min @ 1500 F to 10,000' then <5cc/30 min @ 2000 to TD). Barablok and Barotrol will also be available to improve the filtration control mechanism. 4. For formation bridging/LCM, graded calcium carbonate (Baracarb(s)), cellulose fiber material (Barofibre) and SteelSeal are available. 5. The electrical stability of the mud should be run in the 1000-1100 volt range with INVERMUL and EZ MUL as the primary and secondary emulsifiers. DRIL TREAT will be available as an effective wetting agent, if needed. 6. Maintain the water phase salinity between 280,000 - 310,000 mg/I range with sack calcium chloride. This level of salinity will provide an effective mechanism for good wellbore stabilization. 7. The excess lime content will be maintained in the 3 ppb range to provide an effective reserve alkalinity source and to improve the emulsion stability of the mud system. 8. The initial oil:water ratio will be 80:20. However if the OIW ratio is higher in the used mud do not adjust it down. From there, the system will be maintained with diesel allowing the ratio to drift to the 90: 1 0 range by 10,000'. This will help reduce the cost of the original fluid and then help control rheology/ECD's with the 90: 1 0 ratio in the lower depths of the well. Suggested Drilling Parameters Pump rate and drill string rotation should be optimized through the real-time use of the DFG software for the actual ROP while drilling. The table below highlights the maximum Rap recommendations above which hole cleaning will become an issue. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM~ 200 250 300 40 rpm 59 73 91 60 rpm 86 113 131 80 rpm 110 150 188 Rap rates above these levels or with no (sliding) or low rpm will require an increased frequency of the following remedial hole cleaning practices: · wiper trips · back reaming · extended periods of circulation (with maximum pipe rpm, targeting> 80 rpm) · hole cleaning sweeps (change flow regime of base mud by using fibers, density or rheology for carrying capacity) · connection practices - employing extended gpm, rpm and back reaming during the connection HV #6 v1.0 8 03/02//04 . . "I Haíliburton BAROID Sweeps Three types of hole cleaning sweeps can be used: . Run organophilic clay (Geltone) and a low end rheological modifier (RM-63) to increase the sweep's YP to 35-40. · Increase the sweep density with SWEEPWATE to 2 ppg over system density. The SWEEPWATE will increase the sweep carrying capacity yet will be removed at the shakers; this will result in no density increase from running weighted sweeps. . To reduce the density/viscosity build up in the system, sweeps can be built by adding 0.25 ppb BAROLlFT in place of the clay. The fibrous BAROLlFT will be removed at the shakers. UNOCAL Mud Program Note: Properly size all sweeps for 300 - 400 ft of annular coverage Supplement the hole cleaning of the drilling fluid as dictated by hole cleaning indications. Monitor all sweeps pumped and report on their effectiveness. Maximize drill pipe rotation at high rates on a frequent basis (particularly during connections) to assist in disturbing any potential cuttings accumulations down- hole. The objective of the sweep is to change the flow characteristics / carrying capacity that is inherent with the mud system. Select sweep type accordingly. Coal Drilling The following lessons were learned from extensive experience drilling coal seams in Cook Inlet. The hole stability risks when drilling coal seams are often high, and the fluid design and drilling operations have been optimized to combine reduced risk with reduced costs. The need for good planning and drilling practices is also emphasized as a key component for success. · Avoid drilling the string into the coal too rapidly, risking pack-offs. · Circulate and work five-foot intervals of all drilling breaks. · Avoid excessive annular velocities and the resulting erosive effects in the annulus. · Avoid excessive surge and swab pressures while tripping across fragile coal beds. · Keep the drill pipe in tension to prevent a whipping effect which can disturb coal sections. · Use asphalt-type additives to further stabilize coal seams. · Increase fluid density as required to control the running coal. · Emphasize good hole cleaning through hydraulics, Rap and system rheology. In the event that sloughing coal is encountered, consider spotting a 30 ppb BAROTROL pill across the coal seam. The pill can be safely "squeezed" into the coal by closing the bag and applying pressure not to exceed the total annular pressure loss ( based on ECD values using the DFG software). System density increases can also be employed in increments of 0.5 ppg. Solids Control Equipment Maximize the use of all solids control equipment to ensure that the solids content of the system is kept to a minimum during this interval. 1. Run the shale shakers with as fine a screen size as possible. · Size shakers screens with coarse mesh initially · Adjust screen size as solids loading, mud rheology and flowrates allow · Inspect the shakers frequently, taking time to repair / replace damaged screens 2. Maximize the use of the centrifuge, keeping the fluid as clean as possible. Running Casing I Cementing Preparation At TD, condition the system rheology for running production casing (YP < 20 Ib/10Ofe, flat gel strengths). Run casing slowly at 1-2 mins per stand - based upon swab / sun::¡e calculations from DFG+ - to minimize inducing lost circulation. Break circulation by staging up pump rates at predetermined points in the well; a HV #6 v1.0 9 03/02//04 . . Î Hailiburton BAROID UNOCAL Mud Program I minimum program would be at the shoe and midway to TD. Condition the mud rheology again prior to the cement job. Displace the cement with base diesel oil - ensure availabilitv. Production Hole - Hazards I Concerns: · Optimize solids control equipment to minimize colloidal solids build up and dilution requirements. · Maintain flow profile based on PV, YP and tauo flow parameters. · Pump sweeps as required to enhance hole-cleaning efforts. Monitor the effectiveness of any sweeps pumped. · Follow the hole cleaning guidelines to assist in drilling parameter selection. Use connections for high RPM and pump rate support when these parameters are limited during drilling operations. Follow fluid guidelines for liner running I cementing preparedness. . Follow the coal drilling guidelines. Estimated Fluid Costs: HV#6 12 Ij.¡" Surface 15,000 8 Y2" Intermediate 13,000 6 118" Production Oil 66,000 Total $94,000 **The P-50 estimate assumes 700 bbls of reconditioned oil mud to be used. 22,000 21,000 90,000** $133,000 38,000 50,000 175,000 $263,000 HV #6 v1.0 03/02//04 ]0 . . 'I Halliburton BAROID Losses HV #6 v1.0 03/02//04 UNOCAL Mud Program UNOCAL Lost Circulation Decision Tree f/lnhibited Mud Systems Seepage Partial Severe Total 15-60 bbUhr 5-10 bbUhr Static Static 60·200 bbllhr Static > 200 bbllhr Static Treat Active System with 1 0 sxlhr Barofibre Pump Gunk Squeeze pill to allow POH 100 ppb lCMlMud Pill: (Volume to be 20 ppb Baroseal F determined based 20 ppb Baroseal M upon losses 30 ppb Barofibre 20 ppb Wallnut M 10 ppb Wallnut F Contact Drilling No Engineer or Engineer on call 70 ppb LCMlMud Pill: 20 ppb Baroseal F Pump Gunk POH, PU dumb iron 20 ppb Baroseal M Squeeze pill BHA 20 ppb Barofibre (Volume to be 10 ppb Wallnut M determined based upon losses) Consider cement I plugback contingency 40 ppb LCMlMud Pill: 10 ppb Baroseal F Pump Gunk 10 ppb Baroseal M Squeeze pill 1 0 ppb Barofibre No 10 ppb Wallnut M . Contact Drilling Engineer or Engineer Notes: on call to determine if 1) Drill across fault or loss zone 1.5 - 2.0 times the length of the additional LCM throw before spotting Gunk Squeeze. treatments are to be 2) PBl sub should be run in BHA to spot ~11s if 'Partial loss' cases or made or to proceed to above are anticipated prior to drilling to allow the spotting of lCM Gunk Squeeze pill pills. 3) lCM ~II volume = 300'-600' column based upon actual hole No diameter. 4)PRIOR TO ANY lCM Pill, APPROPRIATE DISCUSSIONS AT Proceed to 'Partial THE RIG MUST BE MADE TO MINIMIZE THE POTENTIAL FOR Losses'PiII PLUGGING THE DRill STRING. 11 . . I Hal'liburton BAROID Seepage Partial Severe Total 20-60 bbllhr 5·20 bbllhr Static Static 60·200 bbllhr Static > 200 bbllhr Static Treat Active System Treat Active System with 5 sxlhr Baracarb with 10 sxlhr Baracarb 50/150 150 Pump reverse gunk squeeze pill to allow 100 ppb LCMlMud Pill: POH (Volume to be Pump reverse determined based Yes 20 ppb Baroseal f upon losses 20 ppb Baracarb 50 gunk squeeze pill 30 ppb Barofibre to allow POH 20 ppb SteelSeal (Volume to be Contact Drilling 10 ppb Baracarb 150 No determined based Engineer or Engineer Increase Treatment to upon losses) on call 10 sxlhr Baracarb 501 50 ppb LCM/Mud Pill: 150 20 bbls Base mud 10 ppb Baracarb 25 20 ppb Baracarb 50 20 ppb Baracarb 150 Plan to pump a second 50-80 bbl reverse gunk squeeze pill if massive No losses continue. Pump reverse Consider cement I 20 ppb LCMlMud Pill: gunk squeeze ~II plugback contingency (Volume to be 20 bbls base mud determined based 10 ppb Baracarb 50 upon losses 10 ppb Baracarb 150 No , Contact the Engineer 1 )UNOCAL must approve any steps past PARTIAL losses. on call to determine if 2) Drill across faun or loss zone 1.5 - 2.0 times the length of the additional LCM throw before spoiling reverse gunk squeeze pills. treatments are to be 3) PBL sub should be run in BHA to spot pills if 'Partial Loss' cases or above are anticipated prior to drilling to allow the spoiling of LCM made or to proceed to ~lIs. reverse gunk squeeze 4) LCM pill volume = 300'-600' column based upon actual hole pill diameter. 5)PRIOR TO ANY lCM PilL, APPROPRIATE DISCUSSIONS AT No THE RIG MUST BE MADE TO MINIMIZE THE POTENTIAL FOR PLUGGING THE DRIll STRING. Losses HV #6 v1.0 03/02//04 UNOCAL Mud Program UNOCAL Lost Circulation Decision Tree fl Payzone Mud Systems 12 · 'I Halliburton BAROID Drillina Fluids Proaram Svnopsis UNOCAL . Mud Program General Discussion A KCI drilling fluid will be used to drill the surface and intermediate hole sections of these wells. This fluid offers hole stability, waste reduction and many options to address/prevent lost circulation. This fluid will yield a more gauge hole which reduces the waste (both while drilling and for cement jobs). This gauge hole, however, can also lead to challenges with swabbing on trips. The production hole will be drilled with a #4 diesellNVERMUL system. This oil based fluid will offer added hole stability and lubricity for this section with the added benefit of lowering waste stream costs. Please refer to the mud program for details. Suaaested Fluids Properties Surface Hole (12 %" hole to 9 5/8" casing point at 1 ,037' TVD) P . ropertles: Density Viscosity Plastic Viscosity Yield Point API FL m! 0-1037' 8.6 -8.9 60-85 6 - 16 25 - 40 N/C 8.5-9.0 Comments: This interval will be drilled with a 6% KCI, EZ Mud fluid. Primary focus for this intervel will be adequate hole cleaning for the large diameter (12 ~") hole and maintaining the drill solids / mud weight. Intermediate Hole (8 %" hole to 7" casing point at 4,024' TVD) P rf rope les: Density Viscosity Plastic Viscosity Yield Point API FL m! 1,037 - 1500' 8.7 -8.9 40-53 6 - 15 13 - 20 N/C 8.5-9.0 1500 - 4517' 8.8 - 9.2 40-50 6 - 15 13 - 20 <8 8.5-9.0 Comments: The mud system from spud will be conditioned and used to drill this section. Maintaining low ECO's is of primary importance. The zone -1,700' has had losses on previous wells. Treat with Barofibre while drilling and emphasize to drillers ECO management. An LCM decision tree is attached should losses develop. Production Hole (6 1/8" hole to 3 %" casing point at 13,500' TVD) P rf rope les: Densitv Viscosity PV YP ES HTHP FL WPS O/W 4,517 -10,000 9.9 - 9.6* 45 - 60 18 - 29 11-20 1 000- <8 280 to 310K 80/20 n 1100 10,000- TD ~* 45 - 60 18 -29 11 - 20 1 000- <5 280 to 310K 90/10 1100 * - Additional mud weight may be required for effective coal or shale stabilization. Comments: The well will be displaced to a #4 diesellNVERMUL system after drilling out the 7" casing. This will be used mud from previous wells. Maintaining a clean, low solids content and raising the OWR to 90/10 prior to 10,000 feet will keep the rheological profile low and reduce chances of lost circulation, excessive pump pressures, and lay down a thinner, more durable wallcake. Maintain the mud weight as low as possible but be prepared to weight up if hole conditions warrant. Reduce the 2000 HTHP fluid loss to <5 by 10,000' and maintain to TO. HV#6 v1.0 03/02//04 ]3 Happy Valley #6 Surface hole cleaning modeling 5 10 15 20 25 0 50 1000 78 157 ?hr rllT lim¡¡ Excellent hole cleaning is acheived with flowrates of 550 gpm. Good hole cleaning is still observed at 450 gpm but the ECD would climb to 9.45 ppg. ,. Intermediate 1000 2000 3000 4000 5 10 15 20 250 50 1000 237 475 1 n hr rllTlim¡:¡ Good hole cleaning is seen with 550 gpm and 100 rpm. When the rpm is lowered to 80, a severe drop in hole cleaning efficiency develops. This also causes the ECD to rise to 10 ppg due to the dirty hole. " Production 1000 5 10 15 20 25 0 1 q hI mTtim;:. 2000 3000 4000 5000 6000 7000 8000 9000 10000 11 000 12000 13000 If the pipe can be rotated at 80 rpm, it should be. This rpm versus 60 rpm improves hole cleaning and ECD drastically. Dropping the flow rate to 250 gpm does not effect hole cleaning as much as reducing the rpm to 60. F(¡!~. l(¡CAílON WHEHE INVOICES WŒE 03-02-04 10147044 PERMITHV6 ------ PRINTED IN U.S.A. CHECK CITIBANK DELAWARE A Subsidiary of Citicürp ONE PENN'S WAY NEW CASTLE, DE 19720 62-20 31T UNOCAL Pay 1548 100.00 100.00 Union Oil Company of California Accounts Payable Field Disbursing 03-02-04 760 100.00 - _.-_-"-_.._-"_.-_..._,_._--_.~-_._--- 100.00 "._,~..------'_._.._~---_._-~-- 2007760 One Hundred Dollars and 00 Cents************************************************************** Check Amount To the order of STATE OF ALASKA ALASKA OIL & GAS CONSERVATION COMMISSION 333 WEST 7TH AVENUE SUITE 100 ANCHORAGE, AK 99501 United States II' 20077 bOil' 1:0:i. .00 20 gl: Date 02-MAR-04 *******100.00 Void - "si'monIJ'~ :i g ¡. ¡. a ¡. :i 7 II' . . . . TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/P ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELLNAME~ Æ~ .$1'6 PTD# 204-olj~ X Development Service Exploration Stratigraphic CHECK WHAT ADD-ONS ~'CLUEn APPLIES (OPTIONS) MULTI The permit is for a new weJlboresegment of LATERAL existing well . Permit No, API No. . (If API num ber Production. should continue to be reported as last two (2) digits a function 'of tbe original API number. stated are between 60-69) above. PILOT HOLE In accordance witb 20 AAC 25.005(1), aJI (PH) records, data and logs acquired for tbe pilot bole must be dearly differentiated In botb name (name on permit plus PH) and API Dumber (50 - 70/80) from records, data and logs acquired for well (name on permit). SPACING The permit is approved subject ·to fuD EXCEPTION compliance witb 20 AAC 25.055. Approval to X perforate and produce is contingent upon issuance of a conservation order approvinta spacing' exception. L/~ (Companv Name) assumes tbe liability of any protest to tbe spacinge:Jception tbat may occur. DRY DITCH An dry ditcb sample sets submitted to tbe SAMPLE Commission must be in no greater tban 30' sample intervals from below tbe permafrost or from where samples are first caugbt and ] 0' sample inter:vals tbrougb target zones. Well Name: HAPPY VALLEY 6 ___ Program DEV Well bore seg 0 AUFORNIA Initial ClassfType DEV /_ 1-GAS GeoArea Unit On/Off Shore On Annular Disposal 0 - Administration I; Permit fee attaci)ep - - - - - - .. Yes - - - - - - - - - - - - - - . . . - - - - - - - - - - - - - - - - - - - - - - Lease .n!Jmberappropri<ite. . - - - - Yes. - - - - - - - - - - - - - - 3 .U.niq!Je welt n.ame .and oumb.er . . . . .. . . . . . . .Yes... - - - - - - - - - - - - - - - - - - - -- .. . - - - . - - - - - - - - - . - - - - - - - - - - -- 4 Well JQc<ited ina. defil1ep ppol. No. . - - - - - - - - - - - - - - - - - - 5 WeJIJQcated proper .distance from driJling !Jl1itb.o!Jl1d.ary. ..... No PropQsed prpdu.cing Jo.cation iswithinJ500 feeLof a prpperty ÞOl!ndry.. BQth prope.rties are within .a.unit 6 WelUQc<ited pr.oper .distance. from Qtber weUs. . - - - - - Yes - - - - - - - - - - - - - - - - - - - - 7 .S.ufficiel1tacreage.ayailable indrilliog unjL . . . . . . Yes. - - - - - - - - - - - - - - - - 8 Ifdeviated. js weJlbQre plaUocJuded . . . - - - - - - -- . Yes. - - - - - - - - - - - - - - 9 .Operator ooly affected party. . . . . . . . Yes. - - - - - - - - - - - - - - - - 10 .Operator bas.apprppriate.b.ond inJQrce . . . . . . . . . . .. .... . . .Yes... . . - - - - - - - - - - - - - . - - - - - - - - - -- 11 Permit can Þe issued wjtbQut co.nservatiOI1 order. - - - - - - No. - - - - - - - - - - - - - - - - - Appr Date 12 Pel'l1)it c.an Þe iSSl!ed wjtbQut admil1istratille.approval . . . . . . . .Yes. - - - - - - - - - - - - - - - - - - - - - - - - - RPC 3/3/2004 13 Can permit be approved before 15-day wait No . 14 WeJUQc<ited withil1 area alld.strataauthorized byJnjectiplJ Order # (p!JUO# in.commelJts) (For. NA . . - - - -- - - - - - - - - - - - - -- 15 .AJI welJs.withiJl Jl4.mite.area.of reyieW jdeotified (Fpr servjcewell OOly). . . . . . . . . . . . . .NA.. . - - - - - - - - - - - - - - - - - - - - - - - - - -- 16 Pre-produ.ced injector; puratiQn.of pre-propuGtiC;)r) less than 3 months. (For.service well Qn]y) NA ~ - - - - - - - - - - - - - - - - - -- 17 AÇMPJ:jnding.ofCQn.si$tency.h.as Þeeniss!JedJorJbis pr.oiect . . NA - - - - - - - - - - - - - - - - - - - - - - - - - -- Engineering 18 C.ondu.ctor string.prQvided . . . . . . . . - - - - - - Yes - - - - - - - - - - - - - - - - ~ - - - - - - - - - - 19 .S.urfaceca!;il1g.pJQte~t!; alLknown USDWs . . . . . . . . . . . . Yes.. . - - - - - - - - - - - - - - - - ~ - - - 20 .CMT v.ot adßquate to circ~tateoncond.uçtor. 8. SUJf.csg . . - - - - - - - Yes. Mequate excess, . - - - - - - - 21 .CMT vol adequ.ateJo tie-iJlJQng .string to.s!Jrf csg . . . . . . . . . . . . . Yes. - ~ - - - - - - - - - -- 22 .CMT will coyerall!<lJown .pro.d!JGtiYe bQri~Qns. . . . . . . . . . . . . Yes. - - - - - - - - - - -- - ~ - - - 23 .C.asing designs adequate for C..T~ B&permafr.ost - - - - - Yes.. . - - - - - - - - - - - - - - - - - - - - - 24 .ApequateJankageor re.seIYe pit. . . . . . . . . . . . . Yes. Kuukpi~ Rig 5, . . . . . . - - - - 25 If.a.re-prilt bas.a. 10-403 fQr abandonmeJlt been apPJQved . . NA f\Jewwelt . . . - - - ~ - - - - - 26 Apequate.wellboreseparatjo.n.proposed. . . . . . . . . . . . . . . . . . . Xes __ . - - - - - ~ - - - - - - - - - - - - - - . - - - - - - 27 Kdiverter req~ired, dQes it meet reguJations. . . . . . . . . . . . . . . . . .NA. Diverter waiver apPJQved.. . . ~ - - - - - Appr Date 28 .DrillilJg flujd. pJogram s~hemat¡c.& ec¡.uip Jistadequ<ite. . . . . . . . . . . Yes. Max MW.9J). RP9. . . . . . . . . . . . . . . . . WGA 3~4 29 .BOPEs,.dothey meetreguJatiol1 . . . . - - - - - - - - - - - - - - Yes.. . . . . . . . . . . . . . . ·4-1'/5· .¡.,..lG!f-: 3 j¡5Jico't 30 .BOPEpress rating appropriate; test to.(pu.t psig tn.commeots) Yes. Test to .4500. ps¡.MS~.~ psi. 31 .Choke.manifold cQmpJies. w/API R~-53 (May 54). . . . . Yes. W6k 32 WQrk will oçC~r withO\Jtoperation .sbutdown . . . . . . . . . . . . . Yes. 33 Is. presence. Qf H2S gas prob.aÞle. . . . No 34 Mecba.nicaLcc;>odJlion of wells with ill ,ð.OR yerified (For. s.ervice welJ only) NA --- Geology 35 Permit c.an be issued wlQ hydrogen s.ulfide meas.ure$ Yes. 36 .D.ata.preselJted on. pote.ntial pverpressure .zone$ NA Appr Date 37 .Setsmic.analysjs. Qf shaJlow gas zones. NA RPC 3/3/2004 38 .S.eabedcoodWPIJ survey.(if off-shore) NA 39 . CQntact namelphoneJorweekly pro Geologic Date: Engineering Commissioner: Commissioner .Dí5 3141 t" - e Well History File APPENDIX Information of detailed nature that is not particularly gennane to the Well Pennitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, infonnation of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. -' · · · UNOCALe Happy Valley #6 TABLE OF CONTENTS WELL RESU ME........... .................. ....................................................................... ..........3 PROCEDURES AND GENERAL DISCUSSION .............................................................5 GEOLOGICAL DiSCUSSiON.... .......... ............ ...... ........ ...................................... ...........6 DAilY ACTIVITY SUMMARY .........................................................................................7 liTH OlOGY REVI EW................................................ .................... .................................9 SU RVEY IN FORMATION............................................................ a_a ............ ................... 26 DAILY MUD PROPERTIES. ............. .......................................... ............ ....................... 31 BIT RECORD ............................. .............................................................. ............ .........32 MORN ING REPORTS..... ..... .... .............. ......... ........................................................ ...... 34 FINAL LOGS........... ....................................................................................... .Appendix I [j EPOCH 2 · · · UNOCALe Happy Valley #6 WELL RESUME Company: Unocal Alaska Resources, Inc. Well: Happy Valley # 6 Happy Valley Field: Region: Cook Inlet Location: Section 22-T2 S - R 13 W,SM Coordinates: 1088'FSL, 1363'FEL Elevation: RKB = 22.5' AGL RKB Elevation = 738.5' GL = 716' AMSL County, State: Kenai Peninsula Borough, Alaska API Index: 50 - 231 - 20019 - 00 Spud Date: April 5th, 2004 Total Depth: 11798' on April 22, 2004 Contractor: Kuukpik Drilling Company Representative: Shane Hauck, Don Fowler, Don Stagner, Marty Monnin RiglType: Kuukpik #5 I Land Epoch Logging Unit: #14 Epoch Personal: Brian Q'Fallon Craig Silva Lees F. Browne Jr. Company Geologist: Mark Lynch g EPOCH 3 · · · Casing Data: Hole size: Mud Type: Logged Interval: Electric Logging Co: Logs Run: UNOCALe Happy Valley #6 16" landed at 67' 95/8" @ 1075' 7" @ 5753' 3 %" @ 11793' 12 ~" to 1075' 8 %" to 5760' 6 1/8" to 11798' 6% KCL PHPA Spud To 1075' 6% KCL PHPA to 5760' INVERMUL Oil Base to 11798' Monitor Gas 71' to Surface Casing (1075') Full Logging under surface casing Reeves Wireline Service QUAD COMBO: Array Induction-FE, Photo Density Caliper-Perf. Comp Neutron Comp Sonic, Gamma Ray Caliper-Gamma Ray g EPOCH 4 . . . UNOCALe Happy Valley #6 PROCEDURES AND GENERAL DISCUSSION Epoch supplied a full computerized Rigwatch system (which included measurements block height, drill rate, pit volumes, pump rates, pump pressure, flowline, retum flow, hook load, torque, and rotary speed) for all operations. Display monitors for the company man and mud engineer, and touch-screen (Azonix) displays for the driller and pit watcher provided graphics of the infonnation. Hydrogen flame ionization (FID) Total Gas and (FID) Gas Chromatograph instruments detected and analyzed fonnation gases. Mud gas was continuously generated by an optimally positioned Quantitative Gas Measurement (QGMTN, Texaco patent) electrically driven gas trap, and drawn to the detectors by vacuum pump. The gas system was tested and calibrated on a regular basis. Unocal Alaska Resources, Inc. spudded Happy Valley #6 I on AprilS, 2004 with Kuukpik Rig #5. Epoch commenced DML TN logging (gas monitoring only) on April 7, 2004 at the base of the 16" conductor pipe. 12~" Surface hole was drilled with water base mud from 67' to 1075' and completed on April 8,2004. Mud weight was maintained at 8.9ppg. Cuttings collection and analysis commenced when the 8~" intennediate hole section began on April 1 0, 2004. Cuttings samples were caught at 30' intervals, and at smaller intervals if the drill rate allowed. Attention was paid to optimum sampling during all gas shows, and especially below the TIO Marker. Intennediate hole section was drilled with water base mud from 1075' to 5760'. Drilling was conducted with caution due to a low leak off test of 13.1 EMWat 5780'. A significant amount of sliding was necessary to build and maintain a target tangent angle of approximately 35°. Rerun bit #2RR was pulled at 5126' when it failed to slide. A new bit #3 was needed to finish the intennediate hole. Mud weight was gradually increased from 9.0ppg to to 9.3ppg. Intennediate hole was completed on April 14,2004. After swapping from water base mud to oil base mud, the 6%" deep hole section commenced on April 17, 2004 and was drilled with a single bit from 5760' to the Happy Valley #6 Total Depth of 11798' (10400' TVD), reached on April 17 , 2004. A Fonnation Integrity Test to 18.94 EMW was perfonned at 5782'. Continued sliding was required to maintain the approximate 35° tangent angle to 9000', and then to drop angle to near vertical (10.12°) at Total Depth. The mud weight of 9.0ppg at the 7" shoe was increased in steps to 9.35ppg and again to 9.45 at Total Depth, in response to connection and swab gases. Downhole electric wireline data was obtained by a Reeves Wireline Service Quad-Combo Assembly. 3~" production tubing was run in the hole on 5" drill pipe, the hanger set, and the tubing string cemented on April 24. Epoch was given its release to rig down after cementing. g EPOCH 5 · · · UNOCALe Happy Valley #6 GEOLOGICAL DISCUSSION HAPPY VALLEY #6 The primary objectives of the Happy Valley #6 were quality Tyonek Formation gas sands. Secondary objectives were more marginal Tyonek zones and some of the lower Beluga Formation sands. All objectives are in the Tertiary Kenai Group. From 1075' to 5760', intermediate hole, was drilled Sterling to Lower Beluga Formations. The interval averaged 19 units of gas, with a maximum of 159 units in a coal. The highest gas measured from sandstone was 83 units at 5519', and 80 units at 2550'. The 61/8" hole from 5760' to total depth, at 11798', included Lower Beluga and Tyonek Formations. Gas averaged 79 units, with a maximum of 616 units in a coal. Drill gas from a number of coals exceeded 100 units up to 616 units. The maximum drill gas from sandstone was 261 units at 6996'. The most significant gas was 1145 units of swab gas after pulling off bottom at 9287' when drilling sandstone. The maximum drill gas for that sandstone was 130 units at 9254'. [j EPOCH 6 UNOCALe Happy Valley #6 . DAILY ACTIVITY SUMMARY (Note: All daily summaries reported at 03:00AM of listed date.) 4/07/04: Finish rigging up and spudded Happy Valley #6. Drilling fonnation. 4/08/04: Drilled to 1075' and circulated hole clean and dropped a carbide to detennine hole wash out. Pulled out of the hole and lay down the bottom hole assembly. Rig up and run 95/8" casing to bottom. Wash fill from 1032' to 1075'. Pump cement to casing and pump plug. 4/09/04: Nipple up and test BOPE. 4/10/04: Pick up bottom hole assembly and trip into the hole. Tagged cement at 996' and drilled out cement and 20' of new hole. Ran a leak off test to 13.1 and drilled another 10' and ran a second test with the same results. Held a safety meeting and drilled ahead. 4/11/04: Finish testing BOPE and pick up bottom hole assembly and trip in the hole, tag cement at 996' and drill out cement and 20' of new fonnation, run leak off test to 13.1 EMW, drill another 10' and run another leak off test with the same results, held a safety meeting and began to drill fonnation. Connection times: high= 16, low = 11, average = 12. No rig repairs or down time . 4/12/04: Drill (rotating and sliding) from 1760' to 3565' and continue to drill ahead. 4/13/04: Drill (rotating and sliding) from 3565' to 5126'. Unable to slide at 5126'. Circulate bottoms up. Pull out of hole. 4/14/04: Pull and pump all the way out of hole. Change out bit and stabilizer (both under guage). Run in hole. Work on mud system during trip out and in. Slip and cut drill line while running in. Ream from 5029' to bottom. Drill (rotating) from 5126' to 5348'. 4/15/04: Drill from 5130' to 5365'. Lose hydraulic power due to hydraulic oil flash fire. Put out fire. Hold safety meeting. Circulate and condition mud. Drill from 5365' to 5725'. Circulate hole clean and condition. Pull 1 stand and change swivel packing. Run to bottom. Drill from 5725' to 5760' [1" casing point). Circulate bottoms up. Circulate around carbide flag. Pump out of hole from 5760' to 5153'. Pull out of hole from 5153' to 2953'. . 4/16/04: Pull out of hole from 2953' to shoe at 1060'. (Dismantle and repair grabber during trip out). Monitor well. (Observe 2.4 bph static loss). Stand back 4" HWDP. Lay down bottom hole assembly. Make up test joint. Pull wear ring. Lay down test joint. Perfonn rig maintenance. Pull grabber body from Topdrive for welding. Rig up to run 7" casing. (Lay down tongs, change bails and links, rig up fill-up line,rig up power tongs and change out elevators). Hold PJSM. Pick up and run in and Bakerlok first 3 joints (shoe joint-joint-float collar joint) of 7" casing. Continue to run 7" casing to 2863'. Circulate and condition mud. Continue running 7" casing from 2863' to 5753'. Circulate and condition mud for cement job (at 4 bbls/min, 60 spm, 450psi). Hold meeting on cementing procedures. Switch to cementers. Pump 3 bbs water. Test cementing lines to 4500psi. Pump 50 bbls mud push. Batch up and pump 76 bbls 12.8ppg lead cement and then 47 bbls 15.8ppg tail cement. Shut down and drop plug. Pump 5 bbls mix water. Switch to rig pump and pump down plug with mud at 78spm. Bump plug. Pressure test to 4000psi. Floats held. Rig down and lay down landing joint and all cementing equipment. Rig up to set packoff. g EPOCH 7 · · · UNOCALe Happy Valley #6 4/17/04: Set packoff. Test all BOPE. Make up new bottom hole assembly with 6.125" bit and 4.75" motor. Run in hole to 5596'. Clean pits while making up bottom hole assembly and running in hole. Test casing. Break circulation and work pipe. Pump sweep around. Displace water base mud with oil base mud above float. Drill out float show to casing shoe track. Drill out casing shoe and drill 22' of new hole from 5760' to 5782'. Circulate bottoms up and clean hole. Perform Formation Integrity Test (to 19.84 EMW). Drill (rotating and sliding) from 5782' to 5985'. 4/18/04: Drill (rotating and sliding) from 5985' to 8244'. 4/19/04: Drill (rotating and sliding) from 8244' to 9885'. 4/20/04: Drill (rotating and sliding) from 9885' to 10773'. 4/21/04: Drill (rotating) from 10773' to 11336'. 4/22/04: Drill (rotating) from 11336' to 11798' (Total Depth). Circulate and condition hole. 4/23/04: Circulate and condition mud. (Circulate bottoms up four times). Do Wiper Trip to 8800'. Run in to bottom at 11798'. Circulate bottoms up. Receive 586 units of Wiper Gas. Pump 14 barrel10.0ppg nutplug flag. (Returns at 5800 strokes/371 bbls indicate only slight washout). Pump dry job. Pull out of hole to 8045'. Hole is tight. Work pipe. Attempt to make up Topdrive to string failed when Topdrive would not rotate. Work tight hole. Troubleshoot Topdrive and attempt to create torque. Pull out of hole from 8045' to 5720'. Monitor well, pull out of hole from 5720' to 801'. Monitorwell. Pull out and handle bottom hole assembly. Lay down bit, motor, and MWD tools. Rig up Reeves Wireline Service. Run wireline Quad-Combo logging assembly. 4/24/04: Finish running wireline Quad-Combo log. Rig down Reeves Wireline Service. Lay down 4" HWDP and jars. Vacuum out oil base mud. Clear and clean rig floor. Rig up to run 3.5" tubing. Change elevators. Rig down rig tongs. Hold PJSM on tubing running procedures. Pick up, make up and then lay back down the cementing head. Pick up tubing shoe. Check float. Run in hole with 3.5" tubing to 6242'. Make up tubing to 5" x 7" ZXP Packer assembly. Run tubing string in hole on 5" drill pipe. 4/25/04: Finish running 3.5" Tubing string in hole. Circulate and condition hole (one and half bottoms up). Rig up for cementers. Hold meeting on cementing procedures. Cement 3.5" tubing string as per UNOCAL. Rig down cementers. Give EPOCH release to rig down. Start completion procedures as per UNOCAL. U EPOCH 8 · UNOCALIÞ Happy Valley #6 LITHOLOGY REVIEW Happy Valley #6 Coal (1075-1105') = black to brownish black; firm, slightly firm and brittle; crumbly; lignite to subbituminous; grades to carbonaceous shale with adjacent increase in organic clay; irregular blocky fracture; trace pyrite. Sand/Sandstone (1105-1195') = medium light gray to light gray; consolidated sandstone has grayish yellow cement; very fine to very coarse; dominantly coarse lower to fine upper; some lightly scattered pebbles; moderately to poorly sorted; subrounded to subangular; extensive grain support with light clay matrix; largely disaggregated; trace streaky calcareous zones; some interbedded siltstone and claystone; 50% quartz, 50% dark. gray to gray, green and pink silicates; estimate good porosity. Tuffaceous Claystone (1195-1220') = light gray with faint greenish blue secondary hue; slightly firm to soft; moderately soluble; slight to moderate silty (or very fine sandy) texture; lightly speckled with organic/carbonaceous flakes and other matter; trace disseminated micas; non calcareous. · Sand/Sandstone (1220-1310') = medium light gray to medium gray; very fine to coarse; very coarse to pebble is locally scattered; dominant very fine to fine 1250-1280'; subangular to locally subrounded; poorly to moderately sorted; grain and minor matrix supported; 50% quartz, 50% dark. gray to gray (mostly metalithics), dark. brown, green, pink and white grains, including silicates with minor clay alteration; estimate fair to poor clay filii porosity to locally good porosity. Coal/Carbonaceous Shale (1335-55') = black to brownish black coal; firm and brittle; sub-bituminous; when the volume of cobedded and interbedded adjacent clays increases, the coal also frequently grades downward to moderately firm lignite, then dusky brown to grayish brown laminated carbonaceous shale, then finally to a very organic claystone with speckles of coal/carbonaceous matter. Sandstone (1370-1395') = medium light gray; very fine to medium lower; subangular to subrounded; poorly to occasionally moderately sorted; matrix and grain supported; 60% quartz and 40% silicates and minor other lithics; mostly poor to some fair porosity; . Tuffaceous Claystone (1460') = pinkish gray; very soft to soft; sectile; mushy to pasty; slightly cohesive to very adhesive; very hydrophilic; amorphous habit; moderate earthy luster; clayey texture; massive beds of homogeneous clay; composed of 80% clay, 20% silt; visible pyroclastic shards; minor very carbonaceous shale and clay beds with thin coals. · Sand/Conglomerate Sand (1500-1550') = very light gray; clast size ranges from fine upper to silt at 1520' and grading to coarse upper to fine upper at 1550'. subangular to rounded fines to sub angular to sub rounded coarse grains; moderate to well deve/oped sphericity; moderate to poor sorting at 1520' and becoming moderate at 1550'; polished to impacted texture; sub mature to some mature with depth; non to slight silic cement and increasing with larger clasts hydrophilic clay matrix in fine grains at 1520' and dominant grain support at 1550'; composed of 80% quartz, 20% metalithics, chert, greenstone and various lithic fragments; poor porosity at 1520 to fair to good at 1550'; . Tuffaceous Siltstone (1580') = grayish orange pink; very poorly indurated; some brittle; slightly malleable to slightly sectite; mushy to slimy; slightly cohesive to moderate adhesive; amorphous fracture and habit; moderate earthy luster; silty to clayey texture; massive beds of gradational silt and clay; scattered fine grained sand interbeds composed of 60% silt, 30% clay, 10% sand and very carbonaceous shale/carbonaceous fragments. [:I EPOCH 9 UHOUL. Happy Valley #6 · Sand (1670') = very light gray; clast size ranges from medium upper to fine upper; Sub round; moderate to well developed sphericity; moderate sorting; impacted texture; sub mature nature; non to very slight silica cement; moderate clay structured matrix; grain and matrix supported; clay very hydrophilic; composed of 70% quartz, 10% chert, 20% metamorphic lithies, greenstone, jasper; fair porosity. Sand (1760') = medium light gray to medium gray; clast size ranges from coarse upper to fine upper; sub round; moderate to well developed sphericity; moderate to poor sorting; chip to impact texture; sub mature; non to very slight silica cement; moderate clay structured matrix; grain and matrix support; composed of 50% quartz, 40% dark gray metalithies, 10% various lithic fragments; appears as a subgraywacke; fair estimated porosity. Tuffaceous Claystone (1880') = light gray; very soft to soft; malleable; sectile; flexibile; elastic; mushy to pasty; slightly cohesive to very adhesive; amorphous fracture and habit; moderate earthy luster; clayey texture; massive homogeneous beds of tuffaceous clay; composed of 80% clay, 20% silt and various detrital material. Sand (1830') = salt and pepper, dark gray to very light gray; clast size ranges from coarse lower to fine lower; sub round; well developed sphericity; moderate to poor sorting; polished to impacted texture; sub mature nature; non to very slight silic cement; moderate to abundant clay structured matrix; matrix supported; composed of 50% quartz, 40% meta, 10% various lithic fragments; fair to poor porosity. · Conglomerate Sandstone (1920') = very pale orange; clast size ranges from coarse upper to very fine upper; sub round; moderate to well developed sphericity; very poor sorting; polished to impacted texture; sub mature nature; non to slight oce moderate silic cement; moderate clay structured matrix; both grain and matrix support; composed of 70% quartz, 10% chert, 20% metamorphic lithies, jasper, greenstone and various lithic fragments; poor porosity. Conglomerate Sandstone (1880') = very pale orange; clast size ranges from coarse upper to very fine upper at 2000' and to fine grains at 2020'; sub round; moderate to well developed sphericity; very poor to poor sorting; polished texture; slight to occasionally moderate silica cement; slight secondary calcareous cement in parts; slight to moderate silt clay matrix at 2000' decreasing with depth; grain and matrix support at 2000' becoming grain support at 2030'; composed of 70% quartz, 30% chert, metamorphic lithies, felds, greenstone, jasper, tuff fragments; poor to fair porosity. Tuffaceous Claystone (1880-2150') = medium light gray to light gray to light brownish gray; spotty very light gray; very soft; mushy to pasty; forms slimy colloidal clay-water clusters and clots when very well hydrated; massive homogeneous clay beds composed of 70-90% clay and 10-30% silt; amorphous fracture and habit; clayey texture; dull earthy luster; locally common "coaly" organic interbeds and/or gradational beds of sub-lignitic coal, carbonaceous claystone and carbonaceous shale Sand (2180') = very light gray; clast size ranges from medium lower to silt; sub round; moderate to well developed sphericity; poor sorting; hard to discern lower end from silt size polished texture; sub mature nature; no visible cement; dominant clay structured matrix; dominant matrix support; composed of 90% quartz, 10% various lithic fragments; poor porosity. Tuffaceous Claystone (2210') = very light gray; very soft; mushy to pasty; forms slimy colloidal clay- water clusters and clots if very well hydrated; may be malleable or even sectile as the clay becomes less hydrated and firmer; very adhesive, slightly cohesive; amorphous fracture and habit; clayey to silty texture; moderate earthy luster; estimated composition is 50% clay/50% silt, and there is a close gradation from clay to silt; minor thin widely separated carbonaceous laminae. · g EPOCH 10 URDCAL. Happy Valley #6 · Sandstone (2250') = very light gray; clast size ranges from medium upper occ coarse lower in parts to fine grained occ grading to very fine grained; sub round to sub angular; moderate to well developed sphericity; moderate sorting; polished to chip to impacted texture; sub mature nature; no visible cement; slight to moderate clay structured matrix; very hydrophilic; both grain and matrix supported; composed of 80% quartz, 20% chert, meta, greenstone; felds, and various lithic fragments; fair to poor porosity. Tuffaceous Claystone (2350') = very light gray; very soft; malleable; sectile; flexibile; mushy to pasty; clustered to clotted; slightly cohesive to very adhesive; amorphous fracture and habit; moderate earthy luster; clayey to silty texture; composed of 80% clay, 20% silt; interbedded with sub graywacke at 2390'. Very Carbonaceous Shale/Coal (2420') = brownish black to black in coal sections brittle to firm to hard in part; earthy luster in shale and sub-resinous luster in coal; gradational between sub-lignitic coal and very carbonaceous shale some grading to carbonaceous clay smooth to matte texture; visible bleeding gas from coal cuttings; planar fracture along shale partings and a hackly fracture in coal sections. Tuffaceous Claystone (2350'-2570') = medium light gray and pale yellowish brown; very soft; clumpy to clustered; clotted to gelatinous; mushy to pasty; slightly cohesive to moderate adhesive; amorphous fracture and habit; dull earthy luster; clayey to colloidal texture; massive beds of homogeneous tuffaceous clay with interbedded fine sand; scattered thin laminae of carbonaceous shale; scattered muscovite(and/or possibly sericite or illite) fragments. Tuffaceous Claystone (2570') = medium gray; very soft and soluble; clayey to siltylvery fine sandy texture; pasty; to pasty; slightly cohesive to moderate adhesive; amorphous fracture and habit; dull earthy luster; scattered thin lamina; occasional carbonaceous shale; massive; occasionally grading to siltstone and minor very fine sandstone. · Tuffaceous Claystone/Siltstone (2600- 2720') = medium gray; slightly firm and soluble with irregular blocky fracture but mostly dissolved into soft pasty mush; clayey to siltylvery fine sandy texture grading clayey siltstone and sandstone; mostly quartz grains and lightly speckled carbonaceous silts and fines; lightly scattered fine to coarse mostly floating sand grains including dark gray silicates and quartz. Carbonaceous Shale (2640-2720') = moderate brown to grayish brown to pale brown; slightly firm and irregular blocky to flaky fracture; moderately soluble overall as mostly dissolved to slightly pasty mush; moderately to slightly organic clay with flakes and fines of carbonaceous matter; earthy to clayey to slightly silty texture; interbedded in tuffaceous claystone; locally interbedded coal and some coal clasts in carbonaceous and tuffaceous clays. Coal (2610-2800') = brownish black to black; firm and brittle, to slightly firm and crumbly to flaky; common low grade lignite to peat with slightly malleable flaky partings and organic clay residue on partings; to thin beds lignite to subbituminous. Tuffaceous Claystone (2720-2810') = medium gray to some brownish gray to medium dark gray; mostly clayey to slightly silty texture; some slightly to moderately organic with earthy to slightly silty texture; overall slightly gritty with slightly scattered floating fine to very coarse grains and conglomerate clasts, especially dark gray silicates and quartz; locally grading to very clayey conglomeratic sand and sandstone with estimated poor clay-fill porosity; also locally grading to carbonaceous shale and coal. Carbonaceous Shale (2840-2925') = dusky brown to grayish brown; firm to slightly firm; earthy to slightly silty texture; slightly soluble to moderately soluble; slightly to moderately organic clay with carbonaceous silts, fines, flakes, and partings; locally grading to peat and lignite; grades to and interbeds with silty and sandy claystone, and very fine sandstone. · Tuffaceous ClaystoneJTuffaceous Siltstone (2810- 2990') = medium gray to some medium dark gray to occasionally light gray; slightly firm to firm; soluble as mostly pasty mush in sample; clayey to silty/ fine [:I EPOCH 11 UNOCALe Happy Valley #6 · sandy texture; with scattered floating fine to coarse grains and fragments including dark. gray silicates and quartz; locally grading sand and conglomeratic sand; some grading to interbedded carbonaceous shale and coal as described above. Carbonaceous Shale (2925-3020') = dusky brown to grayish brown; finn to slightly finn; earthy to slightly silty texture; slightly soluble to moderately soluble; slightly to moderately organic clay with carbonaceous silts, fines, flakes, and partings; occasionally grading peat and lignite to locally interbedded lignite to subbituminous; interbedded with variably silty to sandy tuffaceous claystone. Tuffaceous ClaystonelTuffaceous Siltstone (2990- 3050') = medium gray to some medium dark. gray; slightly finn to moderately soft; soluble as mostly pasty mush in sample; clayey to silty/very fine sandy texture; often with scattered floating fine to coarse grains and minor fragments including dark. gray silicates and quartz; some grading to very fine to fine grained clayey sandstone; locally grading carbonaceous shale with minor interbedded coal. · Conglomeratic SandlSand (3060-3130') = medium dark. gray to medium gray; fine to coarse lower, and locally scattered coarse to coarse fragments, especially 3060-3100'; subangular to subrounded; poorly to moderately sorted and grain and matrix supported; 50% quartz, and 50% mostly dark. gray silicates probably metalithics; estimate mostly poor clay fill to some fair porosity. Carbonaceous shale (3040-3220') = dusky brown to brownish gray; slightly firm to moderately soft; moderately to very organic clay some with carbonaceous partings and flakes and thinly interbedded coal; earthy to clayey to slightly silty texture. Tuffaceous Siltstone/Calcareous Siltstone (3140- 3220') = medium gray; mostly moderately soft and soluble; grades to tuffaceous claystone; note hard dense calcareous streaks with silty to gritty texture. Tuffaceous Claystone/Siltstone (3150- 3340') = medium gray to some medium dark. gray; slightly finn to moderately soft; soluble as mostly pasty mush in sample; clayey to siltylvery fine sandy texture; often with scattered floating fine to coarse grains and minor fragments including dark. gray silicates and quartz; some grading to very fine to fine grained clayey sandstone; local- Iy grading carbonaceous shale with minor interbedded coal. Sandstone (3290-3330') = medium to med- ium light gray; fine to very fine grain; subrounded to subangular; moderately to poorly sorted; mostly grain and some clay supported; 80% quartz, and 20% mostly dark. gray silicates and minor other lithics; estimate some fair to good porosity. Coal (3350-3355') = brownish black to black; angular to irregular blocky to tabular fracture; firm and brittle, to slightly finn and crumbly; resinous to vitreous luster; lignite. Sand/Conglomeratic Sand/Conglomerate (3380'-3450') = medium light gray to medium gray; overall color derived from supporting tuffaceous clay; fine lower to granule; most abundant fraction is coarse lower to very coarse lower; poor to moderate poor sorting overall; subangular to subrounded; subspherical to subdiscoidal; larger clasts often rounded and spherical; abundant clay matrix support; generally very closely gradational to sandy conglomeratic claystone; larger grains appear "floating" in clay; dominant compositional graywacke (>50% lithics); roughly 50% quartz, various cryptosilica other silicates and 50% lithic clasts (and mafics when finer); lithics clasts dominated by dark. gray to grayish black phyllite-argillite group metalithic rock fragments; note common large clastic coal fragments and minor group of other sedimentary lithics. · Tuffaceous ClaystonelTuffaceous Siltstone (3340'-3640') = abundant volcanic ash derived lithologies that includes localized subfissile tuffaceous shale; medium light gray to medium gray; generally faint to strong light brownish gray secondary hues; soft to very slightly finn; soluble, hydrophilic and slightly to [:I EPOCH 12 · · · UNOCALe Happy Valley #6 moderately expansive after hydration; moderate to good adhesiveness, poor to moderate cohesivenss; sticky; massive and formless lumps when soft to subplaty or subblocky when slightly to moderately firm; as the silt to clay ratio decreases. the claystone becomes shalier and "cleaner-looking"; clayey to silty to ashy to soft matte to many mixed textures; earthy lustre; local micro- sparkly lustre as the content of discemible glass shards increase; is the pervasive matrix material of sand and conglomeratic sand; very common microthin interbeds, particles and sand-size clastic grains of coal and carbonaceous shale. Tuffaceous Shale/Argillaceous Shale/Undifferentiated Shale (3350'-4050') = distinctive ashy and silty tuffaceous shale, which despite significant silt and shards, commonly exhibits a "smooth" appearance, and spotty shale locally grades to a denser variation with slightly improved fissility; dominant medium gray to medium dark gray; common very faint olive gray secondary hues; ashy to clayey to silty to subtle mixed textures; dull to earthy to rare subwaxy luster; if non-differentiated shale is present in trace-10% amounts there is association with other trace to spotty uncommon rocks, including: (nearly silt-only and often shard free) non-diffrentiated siltstone, non-ashy claystone, and trace very fine lower quartzose sandstone close to the silt boundary whose composition is sublithic arenite to lithic quartz arenite. Sand/Conglomeratic Sand/Conglomerate (3450'-4050') = medium light gray to medium gray overall if tuffaceous clay is pervasive; isolated better indurated, harder sandstone is light olive to medium greenish gray; locally common light grayish brown (with whitish mottling) if gradational to very sandy claystone; fine lower to granule; poorly sorted overall; fine upper to medium upper is slightly dominant mode; many localized coarse conglomeratic zones; subangular to subrounded, subspherical to subdiscoidal; becomes less rounded and more discoidal when fining upward; abundant clay matrix support; larger grains often "floating" in clay; locally grades to conglomeratic claystone; note rare consolidated grain supported calcite cemented medium sandstone; mostly sublithic arenite to lithic arenite; compositional graywacke if very coarse and conglomeratic; estimate 50-85% quartz and volcanic glass, trace-15% chert, chalcedony and other forms of cryptosilica, tr feldspar, 15-50% lithics and mafic minerals; lithics are dominated by dark gray to grayish black. phyllite-argillite group metalithic rock fragments, common clastic coal and carbonaceous material, and tiny tuff shale rip-up clasts; mafic minerals dom by augite; other lithics in trace to spotty amounts include various meta-volc rk frgs and coarse clasts that may have originated from a meta-conglomerate or microconglomerate, since two different "hard" lithologies are in contact with each other and have been rounded into a single grain; rare quartzite and jasper. Coal/Carbonaceous Shale (3220'-4100') = all "coaly" zones have interbedded and gradational association of lignite coal and carbonaceous shale; black to brownish black to very dusky brown; coal is brittle to firm, and fragile to moderately tough; carbonaceous shale is slight to moderately firm; most coal has irregular, subplaty habit, and irregular slightly hackly fracture; some higher grade lignite has a blockier habit and irregular to sub-conchoidal to hackly fracture; carbonaceous shale has thin platy habit and irregular subparallel separation; many examples of microthin laminations of altemating coal grades (fusainlvitrain) and or altemating laminations of coal and carbonaceous shale; abundant carb shale has micro coal particles; most coal and abundant carb shale has a dense matte texture and dull luster. Tuffaceous ClaystonelTuffaceous Siltstone (4050'-4250') = also includes localized subfissile tuffaceous shale, and traces of very light gray to white mildly reworked nearly undevitrified air fall ash; medium light gray to medium gray. with faint to strong light brownish gray and olive gray secondary hues; soft to very slightly firm; softer claystones are soluble and hydrophilic; slightly to moderately expansive if hydrated; moderate to good adhesiveness, poor to moderate cohesivenss; massive formless lumps when soft; subplaty or subblocky when slightly to moderately firm; becomes shalier and "cleaner" if silt/clay ratio decreases; clayey to silty to ashy to soft matte to many mixed textures; earthy lustre; local micro-sparkly lustre as the content of discemible glass shards increase; pervasive matrix material of sand and conglomeratic sand; very common microthin interbeds, particles and sand-size clastic grains of coal and carbonaceous shale. Conglomerate (4260-4295') = medium light gray; abundant metalithic, igneous, and partially siliceous lithic rock frag- ments in clay matrix; sandy in part grading matrix supported conglomeratic sand; some g EPOCH 13 · · · UNOCALe Happy Valley #6 silicification of lithic fragments possibly in place; interbedded streaks of dense fine grained sandstone and partially siliceous tuffaceous shale. Sand (4295-4330') = medium gray; very fine to medium lower, with scattered medium to coarse to trace rock fragments; poorly to moderately sorted and estimate mostly matrix supported medium light gray tuffaceous clay; 60% quartz, and 40% dark gray to black to minor green to trace white mostly metalithics and some coal and carbonaceous and other lithics; estimate mostly poor clay to possibly fair porosity. SandstonelSiltstone (4330-4510') = medium light gray to medium gray to brownish gray; very fine to fine grain; poorly to moderately sorted; some grain supported, friable, and moderately sorted in slight clay matrix especially sandstone; mostly poorly sorted and sil- ty some with organic clay matrix grading carbonaceous shale with minor inter- bedded coal; locally scattered coarser grains and minor conglomeratic sand and conglomerate; occasional dense calcare- ous streaks; 60% quartz, and 40% dark gray to black silicates and carbonaceous grains, and minor other; some fair visi- ble porosity especially friable sand- stone. Coal/Carbonaceous Shale (4275-4470') = grayish black to brownish black lig- nite, very firm and slightly brittle with platy to irregular fracture; grading to dusky brown to grayish brown shale, moderately firm and crunchy to crumbly, with clayey to earthy to silty to fine sandy texture. Sandstone (4510-4530') = medium gray to medium light gray; very fine to fine and locally scattered medium to coarse lower; subangular to subrounded; moderately to poorly sorted; mostly grain supported; friable to moderately well consolidated with slight clay mat- rix and variably calcareous; 60% quartz, and 40% dark gray to black silicates and other lithics, and some carbonaceous fragments; poor to fair porosity. Tuffaceous Claystone (4530-4630') = medium light gray to medium gray; slightly firm; planar to irregular fracture; clayey to some silty to locally very fine sandy texture; soluble; some grading siltstone and sandstone; streaks dense calcareous shale; lightly scattered carbon- aceous flakes; locally medium dark gray with increasing carbonaceous flakes grading carbonaceous shale with interbedded coal, lignite to subbituminous. SandstonelSiltstone (4610-4715') = medium light gray to medium gray; very fine to fine and locally scattered fine to coarse lower to trace rock fragments; subangular to subrounded; poorly to moderately sorted and mostly matrix supported; friable with clay to some slight calcareous matrix; 65% quartz and 35% dark gray to black silicates and carbonaceous fines and minor other lithics; locally grading conglomerate; estimate some poor to fair porosity. Tuffaceous Claystone (4630-4790') = medium light gray to medium gray; slightly firm; planar to irregular fracture; clayey to silty to very fine sandy texture; soluble to moderately soluble; some grading siltstone and sandstone; locally conglomeratic; some lightly scattered carbonaceous flakes to rare dark gray to grayish brown grading carbonaceous shale with inter- bedded coal. SandstonelSiltstone (4715-4820') = medium light gray to medium gray; very fine to fine and locally scattered medium to coarse lower to trace rock fragments; subangular to subrounded; poorly to moderately sorted and mostly matrix supported; friable with clay to some slight calcareous matrix; 65% quartz and 35% dark gray to black silicates and carbonaceous fines, micas, and other lithics; locally grading conglomerate; estimate some poor to fair porosity. Siltstone/Sandstone (4830-4910') = very light gray to medium light gray to brownish gray to medium gray; very fine to fine lower; subrounded to subangular; poorly to moderately sorted and matrix and grain supported in non to varialbly organic clay; soft to friable; 60-80% quartz, and 40-20% coal and carbonaceous fines and flakes and dark silicates and minor other lithics; estimate poor to fair porosity. [j EPOCH 14 · · · UNOCALe Happy Valley #6 Tuffaceous Claystone/Siltstone (4910- 5000') = medium light gray to medium gray; mostly moderately soft to slight- Iy finn to friable; streaks calcareous including dense claystone and siltstone to very fine sandstone; some coarse silt grading very fine sand; clayey to silty texture overall; locally medium dark gray with carbonaceous flakes associated with coal. Coal (4930-4970') = black to brownish black; very finn and moderately brittle, to moderately finn and crunchy to crumbly; irregular blocky to platy to flaky fracture; vitreous to dull polish to earthy luster; lignite to subbituminous grading to and interbedded in carbonaceous shale. SandstonelSiltstone (4970-5120') = med- ium light gray to medium gray; very fine to some fine and locally ranging to medium; moderately well to moderate sorting; subangular to subrounded; subdiscoidal; mostly tuff clay matrix supported and friable; minor dense marginally hard grain supported with calcite cementation; 75% quartz, 25% lithies, mafic minerals and all other contstituents, including dark gray to black clastic coal and carbonaceous fines, medium to dark gray to pale brown chert, chalcedony and other cryptosilica, and rare quartzite and jasper; lithies fraction dominated by dark gray phyllite-argillite group metalithic rock fragments. Tuffaceous Claystone/Carbonaceous Tuffaceous Claystone/Carbonaceous Shale/Coal (5130'- 5220') = note that near1y all of the clays in this interval appear partially to entirely organic; claystone and carbonaceous shale or coal are visibly very thinly interbedded; medium gray to medium dark gray with strong pale brown to grayish brown secondary hues and streaks of dusky brown to brownish black; coal is black; soft to slightly finn or slightly brittle; ashy to clayey to silty to various matte and mixed textures; earthy to dull lustre; ashy clayst often microsparkly; note that both texture and lustre are distinctly influenced by organic content; some coal partings have a distinct waxiness; abundant tuffaceous claystone is pale brown and grades to non-differentiated organic argillaceous claystone. Very Calcareous Tuffaceous Siltstone/Calcareous Tuff/Calcareous Claystone (5220'-5350') = note subtle overall color change from dominant pale brown with abundant organic content to medium light gray to medium gray with significant presence of calcareous rocks tuffaceous siltstone generally has strong effervescence, is dominantly slight to moderately brittle and grades in part to very fine lower calc sandstone; calc tuff is brittle to marginally hard, generally tough, has dense clayey texture, often is shaly in part, has dull to near subglassy lustre and present in medium gray and dark yellowish orange to grayish orange color variations; both calc siltstone and calc tuff grade to less dense less brittle more massive looking claystone that is moderate to very calcareous; common very thin carbonaceous partings in all of the calcite-rich silt-clay-ash rocks. Tuffaceous ClaystonelTuffaceous Siltstone (5350'-5420') = medium light gray to medium gray to light brownish gray; less calcareous after 5350' to only patchy slight to moderate; contd carbonaceous in part; increasing total silt to 5400', then siltstone becomes predominantly ashy to silty to clayey to soft matte textures; earthy lustre; soft to slighlty finn or brittle; irregular subblocky habit when brittle; some tuff sltst appears micromicaceous in part. Tuffaceous Siltstone (5420'-5470) = medium light gray with strong pale brown secondary hues, to light brownish gray to pale brown; clay fraction is very minor; silt particles tend to be flaky rather than granular, and some appear micro-micaceous; common pieces are micro-interbedded with very light gray volcanic ash; silty to ashy texture; earthy lustre; com thin carbonaceous laminations. Carbonaceous Tuffaceous Claystone/Carbonaceous Shale/Coal (5470'-5570') = overall change from dominant silt to dominant clay at 5470'; abundant pale brown to brown to medium gray with faint very dusky red secondary hues; carbonaceous claystone is more abundant than interbedded carbonaceous shale and coal; overall only slightly calcareous; note many thinly interbedded uncommon variations of volcanic ash derived lithologies with various gray and brown colors; trace brittle gray slightly calcareous claystone; interbedded very fine lower silty sandstone. [j EPOCH 15 · · · UNOCALe Happy Valley #6 SandstonelSiltstone (5570-5600') = grayish brown to medium gray; silty to very fine grains; trace scattered fine to medium lower; subangular; moderately high sphericity; poorly to moderately sorted; grain and some matrix supported with variably to non organic clay matrix as some associated with carbonaceous shale and minor coal; 70% quartz and 30% mostly dark. gray to black silicates and carbonaceous lithics; mostly poor porosity. Coal/carbonaceous Shale (5600-5695') = black to dusky brown; rich dark. brown organic clay with flaky carbonaceous partings to thinly interbedded lignite to subbituminous coal, crumbly to platy fracture; some thinly interbedded with tuffaceous claystone/siltstone. Siltstone (5650-5685') = medium gray to occasionally light brownish gray; soft with ashy clay matrix to very firm with calcareous cement; some (especially the calcareous variations) grade to very fine lower sandstone especially calcareous; silts mostly quartz and some coal and carbonaceous fines; poor to some fair visible porosity. Tuffaceous Siltstone (5695-5760') = medium gray to medium light gray to light brownish gray; mostly moderately soft; mostly ashy clay matrix occasion- ally slightly organic; occasional streaks calcareous grading very fine sandstone; slight carbonaceous laminations and flakes; grading to and inter bedded with tuffaceous claystone; silts mostly quartz with slight dark. gray to black and trace green including carbonaceous fines, silicates, minor micas and other lithics; estimate some poor porosity. Sand/Sandstone (5780'-5980') = medium gray to medium light gray with faint light olive to olive secondary hues; sample pieces often have streaky appearance when "flame-shaped" zones of lighter colored moderately to strongly calcareous sandstone is present; fine lower to medium upper, but mostly moderately well sorted in fine upper to medium lower; subrounded to subangular and subspherical to subdiscoidal; note minor mode of moderately well rounded medium grains; roughly 50% disaggregated and 50% consolidated; consolidated sandstone more often appears to be finer overall; dominantly matrix supported by tuffaceous and non-differentiated claystone and volcanic ash, but 80-90% of all sandstone is also partially or strongly supported by very calcareous clays and calcite; nearly all ofthe consolidated grain supported sandstone has calcite cementation; some sandstone with mixed calcite and silica is present; clayey or ashy lithic arenite, that locally can range to either sublithic arenite or compositional graywacke (>30% lithics); estimate 60-85% quartz and volcanic glass, trace-15% chert, chalcedony and other cryptosilica, tr feldspar, 15-25% lithics and mafic minerals; dominant lithics are dark. gray to grayish black rock fragments from phyllite-argillite sources, followed by clastic sand-sized coal and carbonaceous shale. Tuffaceous ClaystonelTuffaceous Siltstone (5760'-6100') = very closely gradational lithologies, and overall is a single tuffaceous mudstone with textural variations; locally the tuffaceous mudstone is shaly; while some of the mudstone is clearly tuffaceous, some grades to more argillaceous-looking variations that represent a non-differentiated claystone or shale; dominant brittle to firm, especially due the cuttings not being hydrated by the oil base mud; some pieces are marginally soft and can be slightly malleable; clayey to ashy to silty to several soft to dense matte textures; also many mixed or mottled textures; earthy to dull luster; common to abundant very thin laminations, partings, particles and flakes of carbonaceous shale and coal. Carbonaceous Shale/coal/Carbonaceous Claystone (5800'-6300') = dusky brown to brownish black to grayish black to black; carbonaceous shale occasionally has very dusky red or dark yellowish brown secondary hues; coal often is "shiny" black; brittle to very firm to firm; note that most of the coal within this interval is fragile rather than tough, and most is fragmented into small (2-4 mm) pieces; locally some of the coal fragments even finer, to "coffee ground" size; much of the tuffaceous claystone in "coaly" zones is a pale brown to brown ash-derived clay with a large contribution of organidcarbonaceous content in repeated depositions; carbonaceous shale has a clayey to dense silty to several dense matte textures and dull earthy lustre; some of the claystone with higher ash content has been partially devitrified and has a subglassy lustre; coal has smooth to dense matte texture and dull to resinous or vitreous lustre, g EPOCH 16 · UNOCALe Happy Valley #6 irregular subplaty to platy to subsplintery to hackly fracture; the carbon-rich lithologies are often very thily interbedded with each other and adjacent other liths; some of the organic/carbonaceous claystone and shale are gradational to a browish gray to medium or dark gray argillaceous-looking shale that is locally abundant in thin zones. Tuffaceous Shale/Argillaceous Shale/Undifferentiated Shale (5800'-6400') = tuffaceous shale is distinctly ashy and siltier, but locally grades in trace to spotty amounts to a denser, "clayier" shale with slightly improved fissility; common shale pieces contain significant silt and glass shards, but still retain a somewhat "smooth" appearance; mostly medium dark gray to medium gray; common olive gray secondary hues; clayey to ashy to silty to many complex mixed textures; dull to earthy to local subwaxy lustre; undifferentiated shale often looks organic in part, but some is more closely associated by color and general characterisitics with other lithologies; argillaceous shale is dark to medium gray and identical with much of the claystone, except that it has fissility, and platy to subplaty habit; much of the shale/claystone is very closely gradational to siltstone; all of the shale types have microthin carbonaceous and silty laminations and particles; also note that there are traces of non-ashy argillaceous claystone that is largely shard free. · Tuffaceous ClaystonefTuffaceous Siltstone (3340'--3640') = volcanic ash derived lithologies, includes localized subfissile tuffaceous shale; medium light gray to medium dark gray with faint to strong light brownish gray secondary hues; firm to slightly firm to to moderately brittle; clays are slightly mallealble when pressed; if hydrated is slightly expansive and mushy; less firm claystone absorbs more ofthe diesel in the mud system; massive and formless to shaly in part; often has subplaty or subblocky habit, but as the silt content of clay is diminished the claystone becomes blockier, shalier and "cleaner-looking"; clayey to silty to ashy to soft matte to many mixed textures; earthy lustre; local micro- sparkly lustre as the content of discernible glass shards increase; matrix material of most sandstone; very common pieces have microthin interbedding of silt and clay; abundant microthin laminations, partings and particles of carbonaceous shale/coal. Sand/Sandstone (6550'-6800') = medium gray to medium light gray with faint light olive to olive secondary hues; consolidated ss pieces have streaks of lighter colored zones which are caused by thin concentrations of calcite, vole ash or "cleaner-looking" very fine ss; common consolidated sandstone is strongly very fine lower to medium upper range but mostly moderately well sorted at fine upper to medium lower; minor fraction of very fine lower consolidated sandstone grading to very sand siltstone; dominantly subrounded to subangular and sub- spherical to subcliscoidal; est 10% mode of moderately well rounded medium grains; est 80- 90% disaggregated and 10-20% consolidated; consolidated sandstone is more often finer and calcareous than the disaggregated grains; dominantly matrix supported by mix of tuffaceous and non-differentiated claystone and volcanic ash, and also is partially or strongly supported by supported by very calcareous clays and calcite; the consolidated grain supported ss has dominant calcite cementation, and some minor combined calcite and silica; clayey or ashy lithic arenite; locally can transition to either sublithic arenite or compositional graywacke; estimate 60-85% quartz and volcanic glass, trace-15% chert, chalcedony and other cryptosilica, trace feldspar, 15-25% lithics and mafic minerals; dominant lithics are dark gray to grayish black rock fragments from phyllite-argillite sources, followed by clastic sand-sized coal and carbonaceous shale; dominant mafic mineral is augite; note trace of low grade metamorphic greenstone rock fragments; rare orangish red jasper, rose quartz and quartzite; rare loose sand grains appear very slightly frosted, and trace quartz has see silic overgrowths; quartz is 75-85 colorless to very pale gray to pale brown and translucent, and 15-25% of quartz (and nearly 100% of volcanic glass) is colorless and transparent. · Sandstone (6830-6890') = medium gray to medium light gray; very fine to medium grains; subangular; poorly sorted and mostly matrix supported in clay and some with slight soft calcite matrix; 80% quartz, and 20% black to gray to green carbonaceous lithics and silicates with non quartz lithics often soft or clay altered and part of matrix; locally slight micas in clayey sands; mostly poor to occasional fair porosity in cleaner sandstone. U EPOCH 17 UNOCALe Happy Valley #6 · Tuffaceous Claystone (6800-6980') = medium gray to medium dark. gray to brownish gray; moderately firm to slightly firm; smooth to slightly to moderately silty/gritty texture; some slightly organic to grading carbonaceous shale and coal; some grading to siltstone; some with floating sand grains to grading grain supported sandstone. Coal (6860'-6950') = brownish black to black; slightly firm and crumbly to firm and brittle; irregular to flaky fracture; lignite to low grade lignite with streaks subbituminous; interbedded with carbOnaceous shale. Sand/Sandstone (6980~7070') = medium light gray to medium gray; very fine to medium, especially medium lower to fine grains; subangular to subrounded; moderate to high sphericity; moderately to poorly sorted; friable and grain and matrix supported in ashy clay with slight soft calcite, to locally poorly to moderately consolidated with some calcareous cement; 80% quartz, and 20% black to dark. gray coal and carbonaceous lithics and silicates (mafics), and minor green soft and hard grains; estimate fair to poor porosity. Tuffaceous Claystone (7030'-7090') = medium gray to medium dark. gray to brownish gray; slightly firm to moderately firm; smooth to some silty to some moderately gritty texture; some slightly organic to grading carbonaceous shale and minor coal; some grading to siltstone; some with floating sand grains to grading grain supported sandstone. Carbonaceous Shale (7040~7110') = dusky brown to brownish gray shales grading brownish black to black coal; coal is lignite to streaks subbituminous and overall as thin beds in shale. · SandstonelSand (7100~7250') = medium light gray to medium gray; very fine to medium, especially fine to medium low- er, and slightly scattered coarse; subangular to subrounded; poorly to moderately sorted and matrix and grain supported in ashy clay with slight soft calcite; friable; interbedded with sandy tuffaceous claystone and minor siltstone; 75% quartz, and 25% black to gray to green to brown silicates and coal and carbonaceous lithics; some alteration of lithics to clay; poor to some fair clay fill porosity. Tuffaceous Claystone (7160-7290') = medium gray to medium dark. gray to brownish gray; slightly firm to moderately firm; smooth to moderately siltyl gritty texture; some slight carbOnaceous matter and streaks to locally grading carbonaceous shale with inter- bedded coal; some floating sand grains to grading matrix supported sandstone; some medium light gray and calcareous possibly calcareous ash. Coal (7280-7310') = black to brownish black; very firm and brittle with hackly to platy fracture, to moderately firm and crumbly; subbituminous to lignite and grading to carbonaceous shale with increase in organic clay. Tuffaceous Claystone (7305~7340') = medium light gray to medium gray; slightly firm to moderately firm; soluble and slightly expansive in water; mostly slightly silty/gritty texture; some grading siltstone to matrix sup- ported sandstone; lightly speckled to scattered flakes carbOnaceous matter; non calcareous. Sandstone (7340-7400') = light gray to medium light gray, with faint streaks! mottling faint grayish to greenish hue; fine to medium lower, and scattered medium upper to coarse; subangular to subrounded; moderately high sphericity; matrix and grain supported in calcareous ashy clay; grading calcareous ash; 50% quartz, and 50% black to gray to minor green to white to pink grains including various silicates and lithics; some clay alteration of silicates; poor visible porosity. · Tuffaceous Claystone (7400-7570') = medium gray some with faint brownish hue to some light gray; slightly firm to moderately firm; smooth to some silty to some gritty texture; light gray zones grading tuff and often sandy grading sandstone; some with slightly organic clay streaks often associated with increase in silt; often lightly scattered flakes and microlaminations carbOnaceous matter; locally grading dusky brown carbonaceous shale with interbedded coal. g EPOCH 18 . UNOCALe Happy Valley #6 Sandstone (7450-7520') = light gray to medium light gray often faintly mottled and streaked grayish to greenish hue; very fine upper to medium lower and rare medium upper to coarse; subangular to subrounded; moderately high sphericity; matrix and grain supported in variably calcareous ashy clay; grading ash; 50% quartz, and 50% black to gray to minor green to white to pink grains including various silicates and lithics; some clay alteration of silicates; poor visible porosity. Sandstone (7666-7630') = medium light gray with grayish streaks and some with faint brownish hue; very fine upper to medium lower, and scattered medium upper to coarse; subangular to subrounded; matrix and grain sup- ported in slightly silty ashy clay; 70% quartz, and 30% black to gray to minor green and other grains including silicates and coal and carbonaceous fines; poor visible porosity. Tuffaceous Claystone (7570-7700') = medium gray some with faint brownish hue to medium light gray; slightly firm to moderately firm; smooth to silty to some gritty texture; some slightly organic clay and often slight carbonaceous silts and fines and occasional flakes and microlaminations; occasionally increasing organic grading carbonaceous shale and minor coal; locally sandy grading matrix supported sandstone. Coal (7700-7710') = black to some brownish black; very firm to moderately firm; slightly brittle to brittle to crumbly; mostly hackly to slightly conchoidal fracture, to some flaky; resinous to polish to vitreous luster; subbituminous to bituminous grading to lignite. Tuffaceous Claystone (7710-7800') = medium gray some with faint brownish hue to medium light gray; slightly firm to moderately firm; silty to smooth texture often grading siltstone; often slightly organic clay and often slight carbonaceous silts and fines and occasional flakes and microlaminations; occasionally increasing organic grading carbonaceous shale and minor coal; locally sandy grading matrix supported sandstone. . Tuffaceous Claystone (7800-7820') = medium gray some with brownish hue to medium dark gray to light brownish gray to medium light gray; moderately silty to smooth texture; often grading siltstone to very fine grain sandstone; slight carbonaceous silts and fines to occasional flakes and microlaminations; some slightly organic clays; occasionally grading carbonaceous shale with in- creasing organic clay and carbonaceous matter; some thinly bedded coal. Sandstone/Sand (7600-8300') = medium gray to medium light gray with generally strong light brownish gray secondary hues; note that when the supporting matrix of most of the sandstone is richer in volcanic ash the lighter or ''whiter'' it appears; very fine lower to medium upper; most is in fine lower to medium lower range; some very fine upper to very fine lower sandstone is fairty clean, calcareous and grading to siltstone, but most of the very fine lower grains present are glass shards that are included in the ash, and thus represent a part of the supporting matrix, rather than a clastic that has been winnowed out by water/wind and transported and redeposited; moderately well sorted overall, especially at the fine- medium boundary; mostly subangular to subrounded, and subdsicoidal to subspherical, but there are localized zones where the mode shifts to dominant angular to angular and discoidal to subdiscoidal; there is a constant trace-2% of moderately well rounded fine to medium quartz grains. . Sandstone/Sand (7600'-8300') = continued as above; dominant matrix supported by tuffaceous claystone and volcanic ash (and occasionally tuffaceous siltstone); note that some sections of sandstone have a large volume of matrix that exceeds 50% and changes the lithology to a very sandy tuffaceous claystone or very sandy "ashstone"; some the matrix supported sandstone also has some calcite cementation that is near grain to grain and bordertine grain supported, but most of the calcite appears to be within the clay and is in soft "powdery" form; some of the volcanic ash supported sandstone has a matrix that is largely devitrified and locally can be very calcareous after secondary calcite has replaced the glass during its conversion to clay; grain supported sandstone is generally in spotty amounts, apparently common in only thin zones and most often supported by mix of calcite cementation and intergrain clay/ash and occasionally also silica; there is a trace of silica supported only sandstone. g EPOCH 19 · UNOCALe Happy Valley #6 SandstonelSand (7600'-8300') = continued as above; very clayey or ashy sublithic arenite to lithic arenite; locally the sandstone is non-ashy/clayey; estimate 70-85% quartz and volcanic glass; tr feldspar, 5-15% chert, chalcedony and other forms of cryptosilica; 15-25% lithics and mafic minerals; 80-90% of quartz is colorless, pale gray, very pale brown, pale pink, rare other colors and translucent; 10-20% of quartz and nearly all of the glass grains and shards is colorless and transparent; augite is most prominent black mafic mineral; lithics fraction is slightly dominated by medium dark gray to grayish black medium grade metamorphic phyllite- argillite rock fragments, but overalllithics are fairly diverse; very common sand-size clastic coaVcarbonaceous fragments and lithic claystone/siltstone fragments; some of the largest clay lithics appear to be tiny rip-up clasts; locally common dark yellowish orange calcareous tuff lithics; rare to trace but very distinctive variegated pale green low grade metamorphic greenstone lithics and pale orangish red jasper. · Coal/Carbonaceous Shale/Carbonaceous Claystone (7700'-8600') = black to brownish black to grayish black to very dusky brown; vitreous coal is often a "shiny" black; carbonaceous shale occasionally has very dusky red or dark yellowish brown secondary hues; some coals have alternating black and grayish black gradeltexture laminations; brittle to very firm to firm; most coal at start of this interval was fragile, but became increasingly tough; after 8200' most of the vitreous looking coal is moderately hard and tough; the fragile coal often fragmented into small (2-4mm) pieces, and some of the coal was even finer, breaking to "coffee ground" size; abundant tuffaceous claystone in "coaly" zones is pale brown to dark brown ash-derived clay with a major contribution of organic/carbonaceous sediment; some of the carbonaceous tuffaceous claystone forms the support matrix for local sandstone; carbonaceous shale has a clayey to dense silty to several dense matte textures and dull earthy luster; coal has smooth to dense matte texture,dull to resinous or vitreous lustre, irregular subplaty to platy to subsplintery to hackly fracture, rare conchoidal or birdeye fracture; and locally has discernible outgassing; the most resinous of the coal often has a very slight "oilyness" or "waxiness", and water drops will bead on its surface; all the carbon-rich rocks appear to be thinly interbedded with each other and adjacent rocks. Volcanic AshNery Sandy Volcanic AshNery Ashy Sandstone (8000'-8800') = light gray with many pale variations of brown hues; ranges from very light gray to medium light gray, and usually there is a pale yellowish gray or very light bownish gray secondary hue; can be pale brown color when associated with highly carbonaceous zones; some of the "cleanest" less reworked ash is white; soft to firm and brittle; most is slighty to moderately firm and slight to moderately brittle; ashy to clayey to various soft matte textures; some devitrified ash appears smooth; earthy to microsparkly to dull (chalky) luster; "microsparkles" produced by abundant glass microshards; when devitrified the ash has a very distinctive subwaxy to waxy lustre; the volcanic ash is very closely gradational to tuffaceous clay, and the only real separation is determined by the abundance and very even distribution of glass shards without being concentrated in laminar zones, the general homogeneity of the color, and the rare examples of secondary pseudotextures that mimic the original vitroclastic clastic, despite being reworked in a fluvial environment; volcanic ash and tuffaceous claystone are the pervasive matrix support of the sandstone in this interval, and locally the matrix volume will exceed 50%, changing the rock to a sand claystone or "ashstone"; much of this interval could be considered a single rock type with sand and ash fractions ranging back and forth in the 30% to 70% range, a very ashy sandy mudstone; note that some of the larger shards were devitrified at different rate from the groundmass, producing silty rather than clayey texture. · Tuffaceous Claystone/Tuffaceous Siltstone (7900'-8700') = most abundant ash-derived lithologies, includes localized subfissile tuffaceous shale; medium light gray to medium dark gray with faint to strong light brownish gray secondary hues; firm to slightly firm to to moderately brittle; clays are slightly malleable when pressed; if hydrated is slightly expansive and mushy; less firm claystone absorbs more of the diesel in the mud system; massive and formless to shaly in part; often has subplaty or subblocky habit, but as the silt content of clay is diminished the claystone becomes blockier, shalier and "cleaner- looking"; clayey to silty to ashy to soft matte to many mixed textures; earthy lustre; local micro- sparkly lustre as the content of discernible glass shards increase; matrix material of most sandstone; very U EPOCH 20 UNOCALe Happy Valley #6 · common pieces have microthin interbedding of silt and clay; abundant microthin laminations, partings and particles of carbonaceous shale/coal. Tuffaceous ClaystonelTuffaceous Siltstone (8875- 9000') = medium light gray to medium gray to brownish gray; slightly firm to moderately firm; soluble; silty to smooth texture; some coarse silt grading to very fine grain sandstone; often slightly organic grading to carbonaceous shale. Carbonaceous Shale (8905-9000') = dusky brown to brownish gray to occasionally dark brownish gray; moderately firm; soluble; rich organic clay to mod- eratly organic grading to tuffaceous claystone; some interbedded with light gray tuffaceous claystone and siltstone; rare visible carbonaceous flakes and faint partings and microlaminations; trace pyrite; common grading to or interbedded with coal. Coal (8890'-8975') = black to grayish black to brownish black; very firm and brittle to slightly firm and crumbly; some with dense visible lamina with platy to hackly fracture and polished to resinous fracture, to some with flaky fracture and dull polish luster, to streaks conchoidal fracture with vitreous luster; overall subbituminous to lignite with lignite often grading to dusky brown carbonaceus shale. Sandstone/Sand (9000-9100') = medium light gray to medium gray; very fine upper to medium lower; subangular to subrounded; moderate to high sphericity; poorly to moderately sorted in ashy clay and soft calcite matrix; matrix supported and friable, to grain support and poorly consolidated with slight calcareous cement; some silty matrix grading to siltstone; 80% quartz, and 20% black to green to trace pink to brown grains including coal and clay lithics and minor silicates; common clay alteration of silicates, that partially becomes part of matrix; estimate mostly poor to streaky fair porosity. · SandstonelSand (9110-9150') = medium light gray to medium gray; very fine to fine and scattered medium; subangular to subrounded; moderately high sphericity; poorly to locally moderately sorted in variably calcareous ashy clay matrix; matrix and streaks grain supported and poorly consolidated to friable; some silty matrix grading to siltstone; 80% quartz, and 20% black to green to trace pink to brown grains including coal and clay lithics and silicates; common clay alteration of silicates and becoming part of matrix; poor porosity; rare streaks of fair porosity. coal (9155-9170') = black to brownish black; slightly firm and flaky to crumbly with visible lamina, to very firm and brittle with hackly to conchoidal fracture and some dense lamina; lignite to subbituminous; massive to grading dusky brown carbonaceous shale. Carbonaceous Shale (9170-9255') = dusky brown to brownish gray to occasionally dark brownish gray; slightly firm to firm; organic clay some with carbonaceous partings and microlaminations; some thinly interbedded coal; interbedded with brownish gray to medium gray claystone and some siltstone and minor sandstone. Sandstone (9255-9300') = medium light gray to medium gray; medium to fine grains; subrounded to subangular; moderate to high sphericity; poorly to occasionally moderately sorted; matrix and some grain supported in ashy calcareous matrix; grading calcareous tuff; occasional streaks with slight clay matrix and poorly consolidated with slight calcareous cement; 70% quartz, and 30% black to gray to green to pink coal and clay lithics and minor silicates; some gray to green to rare red streaks in matrix from clay altered silicates; some poor to rare streaks fair porosity. Carbonaceous Shale (9315-9475') = dusky brown to brownish gray to occasionally dark brownish gray; slightly firm to firm; organic clay some with carbonaceous partings and microlaminations; interbedded and grading to variably tuffaceous claystone and variably tuffaceous and calcareous siltstone and minor sand- stone; some thin beds coal to massive and subbituminous coal at 9320' to 9335' with platy to irregular to slight conchoidal fracture. · U EPOCH 21 · · · UNOCALe Happy Valley #6 Coal (9420-40') = black to brownish black; moderately firm to some firm with irregular to tabular fracture and common organic clay residue on partings; lignite to subbituminous. Sandstone (9470-9530') = medium light gray to medium gray; medium to fine grains; subrounded to subangular; moderate to high sphericity; poorly to occasionally moderately sorted; matrix and some grain supported in ashy variably calcareous matrix grading tuff; occasional streaks with slight clay matrix and poorly consolidated with slight calcareous cement; 65% quartz and 35% black to gray to minor green, pink, and tan including coal and some silicates and clays; common streaks gray to minor green and red matrix from silicates altered to clay; mostly poor porosity, with streaks of fair porosity with less clay alteration. SandstonelSand (9600'-10000') = medium light gray to light gray with locally strong light brownish gray secondary hues; note that when the supporting matrix of abundant sandstone is very rich in volcanic ash it can be nearly white in appearance; very fine lower to medium upper; dominant fine lower to medium lower range; a trace of very fine upper to very fine lower sandstone is fairly clean, calcareous and grading to siltstone, but most of the very fine lower grains present are glass shards that are included in the ash, and part of the supporting matrix, rather than clastics winnowed by water/wind and transported and redeposited; moderately well sorted overall, especially at the fine-medium boundary; mostly subangular to subrounded, and subdsicoidal to subspherical, but there are spotty zones where the mode shifts to dominant angular to angular and discoidal to subdiscoidal; trace-3% moderately well rounded fine to medium quartz grains. Sandstone (9600'-10000') = continued as above; dominant matrix supported by tuffaceous claystone and volcanic ash (and occasionally tuffaceous siltstone); note that some sections of sandstone display a large volume of matrix that exceeds 50% and changes the lithology to a very sandy tuffaceous claystone or very sandy "ash-stone"; some the matrix supported sandstone also has spotty calcite cementation that is near grain to grain and borderline to grain supported, but most of the calcite appears to be within the clay and is in soft "powdery" form; matrix ash of trace sandstone is partially to entirely devitrified, and is very calcareous if secondary calcite has replaced glass during alteration to clay; there is rare silica supported sandstone that has very little ash; grain supported sandstone is generally spotty, and supported by mix of calcite cementation and intergrain clay/ash and occasionally also silica; there is trace sandstone supported only by silica. Sandstone (9600'-10000') = continued as above; very clayey or ashy sublithic arenite to lithic arenite, some possible lithic quartz arenite in topmost zones of some sections; non-ashy/clayey sandstone is only observed in trace amounts; est 70-90% quartz and volcanic glass, trfeldspar, 5-15% chalcedony, chert, other forms of cryptosilica and pale to light colored mafics; 10-25% lithics and dark (black) mafic minerals; 80-90% quartz is colorless to palelvery pale gray-brown-green-rose-yellow and translucent, and 10-20% quartz plus nearly all glass grains and shards are colorless and transparent; augite is dominant black mafic mineral; lithics are slightly dominated by medium gray to grayish black medium gray metamorphic phyllite-argillite rock fragments; overalllithics are fairly diverse; note sand-size clastic coaVcarbonaceous fragments and lithic claystone/siltstone fragments; locally common dark yellowish orange calcareous tuff lithics; trace very distinctive variegated pale green low grade metamorphic greenstone lithics and pale orangish red jasper. SandstoneNery Ashy SandstoneNery Sandy Volcanic Ash (10000'-10190') = light gray to very light gray with strong pale yellowish gray, faint light brownish gray and very faint grayish orange pink secondary hues; often pale brown when associated with adjacent carbonaceous zone; occasionally white when there has been little reworking of matrix ash; soft to firm and brittle; dominant slight to moderately firm or slight to moderately brittle; some sandstone is friable, but most "mashes down" when pressed; very fine lower to medium lower; dominant fine lower to fine upper with largest fraction in fine upper; subangular to subrounded, and sub- discoidal to subspherical; very abundant matrix support; matrix volume often is at or exceeding 50%, change the rock to a very sandy "ashstone" or tuffaceous claystone; sand and ash fractions in this interval alternate within the 30% to 70% range; in the field this rock appear U EPOCH 22 . UNOCALe Happy Valley #6 as a very sandy mudstone; except for the volume of ash matrix, this sandstone has the same composition and general characteristics as the major interval described immediately above; the matrix ash and tuffaceous clay have ashy to clayey to various soft matte textures if unaltered, and smooth to dense matte texture with distinctive subwaxy to waxy lustre if devitrified; because the matrix volume is large, this very ashy sandstone often displays laminar developement in much the manner as a claystone/shale/siltstone; note that this sandstone type occasionally has a microsparkly appearance to due the abundant of glass shards in the matrix. Coal/Carbonaceous Shale/Carbonaceous Claystone (10190'-10350') = black to brownish black to grayish black to very dusky brown; vitreous coal is often a "shiny" black; carbonaceous shale occasionally has very dusky red or dark yellowish brown secondary hues; some coals have alternating black and grayish black gradeltexture laminations; brittle to very firm to firm; fragile to tough; most vitreous coal is moderately hard and tough; abundant tuffaceous claystone in carbon-rich zones is pale brown to dark brown after the admixing with organic/carbonaceous sediments; carbonaceous shale has a clayey to dense silty to dense matte textures, and a dull earthy lustre; coal has smooth to dense matte texture, dull to resinous or vitreous lustre, irregular subplaty to platy to subsplintery to hackly fracture, minor conchoidal or birdeye fracture; common discernible outgassing bubbles; the most resinous of the coal often has a very slight "oilyness" or "waxiness", and water drops will bead on its surface; all the carbon- rich rocks appear to be thinly interbedded with each other and adjacent rocks. Tuffaceous Claystone/Carbonaceous Shale (10360-10415') = medium light gray to medium gray to brownish gray to dusky brown; moderately firm to firm; clayey to moderately silty texture; often variably organic as indicated by variable brownish color; some with dissemnated to scattered flakes and lenses of carbonaceous matter; often slightly to moderately calcareous, especially non to slightly organic, and grading to mudstone; some thin coal coal beds and lamina. . Coal (10410-10430') = black to brownish black; subbituminous and dense with visible lamina, resinous luster, and platy to hackly fracture with streaks vitreous luster and conchoidal fracture; to some lignite with dull waxy luster and increase clay grading carbonaceous shale. SandstonelSand (10430-10550') = medium gray with faint olive hue, to medium light gray; fine to coarse lower, trace pebble; subangular; poorly to streaks moderately sorted; mostly matrix supported and variably calcareous, grading to tuffaceous claystone and calcareous tuff, soft; some grain supported and friable to rare moderately consolidated with slight clay matrix to slight calcareous cement; 60% quartz, and 40% black to gray to green to amber to pink including coal and clay lithics, and silicates (chert, feldspar, mafics); common clay alteration or reworking of lithics becoming part of matrix; very poor to rare streaks fair porosity. Coal (10565-10610') = brownish black to black; dense with some visible lamina, resinous to some vitreous luster, and hackly to platy fracture with rare conchoidal; to some flaky fracture; massive lignite to subbituminous, to thinly bedded in dusky brown carbonaceous shale. . Tuffaceous Claystone/Calcareous Tuffaceous Claystone (10600'-10700') = light gray to light grayish brown to pale brown to grayish brown; slightly brittle to slightly firm; ashy to clayey to various matte textures; microsparkly to dull luster if unaltered, subwaxy to waxy if devitrified; 90% of volcanic ash and tuffaceous claystone in this interval is devitrified; supporting matrix of sandstone; grades to very ashy/clayey sandstone; generally moderately calcareous and locally very calcareous; note abundant variegated or mottled color patterns (possibly due to different rates of devitrification). SandstonelSand (10600'-10800') = medium light gray to light grayish brown; minor light gray with faint pale yellowish gray secondary hue; very fine lower to medium lower; moderately well sorted in fine range; subangular to subrounded, subdiscoidal to subpherical; near 100% matrix supported by tuffaceous claystone and volcanic ash; sublithic arenite to lithic quartz arenite; >5% black grains; abundant glass g EPOCH 23 . UNOCALe Happy Valley #6 shards in matrix this interval; 80-90% glass microshards and most sand-sized macroshards have been been devitrified; very poor visible porosity Coal/Carbonaceous Shale (10600'-10800') = black to brownish black to very dusky brown; coal: lignite to subbituminous, brittle to firm; tough to fragile; irregular subplaty to platy habit; subplanar to planar to hackly to irregular fracture; trace conchoidal fracture; spotty visible outgassing from highest grade coalS; carbonaceous shale abundantly grades to carbonaceous claystone and carbonaceous tuffaceous claystone: pale brown to medium brown, firm to soft, organic clayey texture; earthy luster, abundant coal laminations and particles. Sand/Sandstone/Conglomeratic Sand/Conglomerate (10860'-10890') = note minor change in the sand; variegated light gray and pale brown; very fine lower to granule; minor mode of coarse lower to very coarse upper; some conglomerate to 4mm; ashy clay matrix supported lithic arenite; diverse conglomerate clasts include: quartz, microcgl, coal, devitrified tuff, weathered greenstone, weathered volcanics, argillite-phyllite, quartzite; coarse to conglomeratel fraction is a mix of angular and well rounded grains; poor sorting; fair porosity. Sandstone (10900'-10970') = light grayish brown to pale brown to medium light gray with strong light yellowish brown secondary hues; variegated, speckled, and laminar color patterns; all is very closely gradational to very sandy ashy claystone; very fine lower to coarse lower; moderately sorted in fine lower to medium upper range; very fine fraction dominated by glass shards and possibly other redeposited grains; most is moderately well sorted; subangular to subrounded, subdiscoidal to subspherical; pervasive ashy clay matrix has been almost entirely devitrified, weathered and altered; sublithic arenite; note distinctive contrast of light colored and dark colored constituents; many of the dark constituents have a "smeared" appearance due to weathering. . Sandstone (11000'-11110') = medium light gray with faint yellowish brown to faint olive hue; very fine to medium and slightly scattered coarse; subangular to subrounded overall with common angular grains; moslty poorly sorted and matrix supported grading variably calcareous tuffaceous claystone and ash; some grain supported and poorly to moderately sorted, especially fine to medium, and friable with clay matrix to rare moderately consolidated with calcareous cement; 70% quartz; 30% black to gray to green to pink to tan lithics and silicates, mostly weathered in poorly sorted sandstone and sandy claystone; some poor to fair porosity in grain supported. Coal (11045'-11125') = brownish black to black; subbituminous and dense with some visible lamina; resinous to vitreous luster, and hackly to angular to platy to conchoidal fracture; some flaky to crumbly lignite grading to dusky brown carbonaceous shale. Tuffaceous Claystone/Carbonaceous Shale (11110-11230') = light brownish gray to grayish brown to medium light gray; mostly slightly to moderately firm and soluble and expansive in water; some firm streaks in carbonaceous shale; mostly variably organic and non to occasionally slightly calcareous; some with disseminated carbonaceous matter and micro-laminations grading to carbonaceous shale and with interbedded coal; light gray slightly to moderately calcareous and variably silty to sandy, grading ash fall tuff and with thinly interbedded sandstone, including consolidated very fine to medium lower grain supported thin zones with possible streaks poor to fair porosity. . Sandstone/Coarse Conglomeratic Sand/Conglomerate (11260'-11310') = medium dark gray to medium gray with variegated mix of dark to pale yellowish brown, light to medium brownish gray and pale brown as primary coloration or as very strong secondary hues; very fine lower to granule; major coarse lower to very coarse upper; trace pebbles to 4mm; finer sand is subangular to subrounded, subdiscoidal to subspherical, coarse to conglomerate fraction is a mix of well rounded and angular grains; sublithic to lithic arenite; diverse conglomerate clasts include quartz, argillite-phyllite, coal, devitrified ash, weathered greenstone and volcanics, lithic sedimentary fragments (often in very low grade metamorphism), various cryptosilica; poor sorting; poor to possible fair porosity. g EPOCH 24 · · · UNOCALe Happy Valley #6 Coal/Carbonaceous Shale (11300'-11470') = black to brownish black to very dusky brown; coal: lignite to subbituminous, brittle to firm; tough to fragile; irregular subplaty to platy habit; subplanar to planar to hackly to irregular fracture; minor subconchoidal fracture; spotty visible outgassing from highest grade coals; carbonaceous shale abundantly grades to carbonaceous claystone and carbonaceous tuffaceous claystone, which are pale brown to medium brown, firm to soft, have an organic clayey texture and earthy luster, and have abundant coal laminations and particles. Sandstone/Coarse Conglomeratic Sand/Conglomerate (11380'-11500') = medium dark gray to medium gray with variegated dark to pale yellowish brown, light to medium brownish gray and pale brown as minor primary coloration or as very strong secondary hues; very fine lower to granule; dominant fine lower to medium lower; moderately sorted; finer sand is subangular to subrounded, subdiscoidal/discoidal to subspherical; occasional coarse sand is a mix of rounded and angular grains; sublithic to lithic arenite; diverse lithics and other large clasts include quartz, argillite-phyllite, coal, devitrified ash, weathered greenstone and volcanics, various lithic sedimentary rock fragments,and various forms of cryptosilica; poorly sorted; poor to possibly fair porosity; locally very abundant clastic coal fragments; rare to trace "cleaner" grain supported fine sandstone with calcareous cementation. Coal (11500-11540') = black to grayish black subbituminous to bituminous with hackly to angular to rare conchoidal fracture; grading some brownish black lignite and dusky brown carbonaceous shale. Sandstone (11540-11700') = medium light gray to medium gray; very fine to medium grains; subangular; moderately sorted; occurs as matrix supported to moderately and moderately well consolidated and grain supported with some calcareous cement; often associated with ash fall tuff; possible thin consolidated stringers interbedded with various lithologies; 70% quartz, and 30% dark gray to black to green to minor tan and red silicates and lithics; very poor to poor visible porosity. Tuffaceous Claystone (11540-11710') = medium light gray to medium gray to light brownish gray to brownish gray; slightly firm to firm; most is slightly silty; often slightly to moderately organic, grading to grayish brown to dusky brown carbonaceous shale; some slightly sandy with floating fine to medium grains especially grading ash fall tuff; some thinly interbedded sandstone and siltstone; some interbedded coal especially associated with carbonaceous shale. Ash Fall Tuff/Sandstone (11710-11740')::; pale yellow gray to medium light gray, with faint grayish to minor greenish streaks; slightly silty and very slightly sandy texture; mostly composed of angular quartz shards; slightly to moderately calcareous; occasionally grading to grain supported sandstone, poorly to moderately sorted, fine to medium grains, subangular, poorly to moderately consolidated with some calcareous cement; some thin lamina of ash in interbedded coal and organic rich claystone; very poor to poor visible porosity in the associated sandstone. Coal/Carbonaceous Shale/Carbonaceous Claystone (11785'-11798') = black to brownish black to very dusky brown to brown; brittle coal; firm carbonaceous shale, soft to slightly firm carbonaceous claystone; subbituminous to lignite interbedded with carbonaceous shale and carbonaceous claystone; irregular subplanar to subblocky fracture; smooth to dense matte texture; dull to subvitreous/vitreous to dense earthy luster. g EPOCH 25 . UNDCAL. Happy Valley #6 SURVEY INFORMATION Happy Valley #6 . Measured TVD Inclination Azimuth E (+) W (-) N (+) S (-) Dog Leg Feet Feet Degrees Degrees Degreesl 0 0 0.00 0.00 0.00 0 50 50.00 0.31 212.77 -0.07 -0.11 0.62 100 100.00 0.62 212.77 -0.29 -0.46 0.62 150 149.99 0.64 200.47 -0.54 -0.95 0.28 200 199.99 0.69 192.55 -0.70 -1.50 0.20 250 249.99 0.70 197.64 -0.86 -2.09 0.13 300 299.98 0.74 203.60 -1.08 -2.67 0.17 350 349.98 0.69 206.94 -1.35 -3.23 0.13 400 399.98 0.59 206.31 -1.60 -3.73 0.20 450 449.97 0.65 201.02 -1.81 -4.23 0.18 500 499.97 0.74 206.10 -2.06 -4.79 0.21 550 549.97 0.64 209.27 -2.33 -5.32 0.23 600 599.96 0.62 219.06 -2.64 -5.77 0.22 650 649.96 0.53 200.76 -2.89 -6.19 0.40 700 699.96 0.60 204.46 -3.08 -6.65 0.16 750 749.96 0.71 204.12 -3.32 -7.17 0.21 800 799.95 0.71 216.79 -3.63 -7.70 0.31 850 849.95 0.59 218.38 -3.97 -8.15 0.24 900 899.95 0.59 207.81 -4.25 -8.58 0.22 950 949.94 0.66 206.54 -4.50 -9.07 0.14 1000 999.94 0.63 203.67 -4.74 -9.58 0.09 1008 1007.54 0.62 201.30 -4.78 -9.66 0.38 1143 1142.93 0.74 222.12 -5.63 -10.99 0.20 1206 1205.92 0.77 231.10 -6.23 -11.56 0.19 1269 1268.90 2.14 233.19 -7.50 -12.53 2.18 1332 1331.82 3.54 245.17 -10.21 -14.05 2.40 1395 1394.62 5.59 245.22 -14.76 -16.15 3.2q 1458 1457.21 7.42 248.02 -21.32 -18.96 2.95 1521 1519.60 8.53 248.27 -29.43 -22.21 1.76 1585 1582.91 8.39 243.89 -38.03 -26.03 1.03 . U EPOCH 26 UNOCALe Happy Valley #6 · SURVEY INFORMATION Happy Valley #6 · Measured TVD Inclination Azimuth E (+) W (-) N (+) S (-) Dog Leg Feet Feet Degrees Degrees Degreesl 1648 1645.17 9.18 243.61 -46.66 -30.28 1.26 1711 1707.20 10.89 242.40 -56.44 -35.27 2.73 1774 1768.92 12.29 242.51 -67.66 -41.13 2.22 1837 1830.24 14.20 241.74 -80.42 -47.88 3.04 1900 1891.18 15.16 241.06 -94.43 -55.52 1.55 1963 1951.84 16.17 244.40 -109.55 -63.30 2.15 2026 2012.08 17.85 242.71 -126.05 -71.52 2.78 2089 2071.95 18.47 239.49 -143.23 -81.01 1.87 2152 2131.57 19.20 238.69 -160.68 -91.46 1.23 2215 2190.87 20.30 241.63 -179.14 -102.04 2.35 2278 2249.66 21.80 242.01 -199.09 -112.72 2.39 2341 2307.85 23.27 242.55 -220.46 -123.95 2.36 2404 2365.43 24.60 243.04 -243.20 -135.63 2.13 2467 2422.54 25.33 242.25 -266.81 -147.85 1.27 2531 2480.22 26.05 241.52 -291.28 -160.93 1.23 2594 2536.69 26.58 240.98 -315.76 -174.36 0.92 2657 2592.99 26.73 240.21 -340.39 -188.24 0.60 2720 2649.34 26.40 237.18 -364.45 -202.87 2.21 2783 2705.95 25.67 238.49 -387.86 -217.59 1.47 2846 2762.70 25.81 239.70 -411.33 -231.65 0.86 2909 2818.87 28.03 237.65 -435.68 -246.49 3.82 2972 2874.29 28.77 239.13 -461.20 -262.19 1.62 3035 2929.72 27.97 240.42 -487.06 -277.26 1.60 3098 2985.21 28.57 243.36 -513.38 -291.31 2.41 ~ 3161 3040.32 29.41 242.58 -540.57 -305.19 1.46 3224 3094.86 30.63 241.88 -568.46 -319.88 2.01 3288 3149.67 31.55 239.57 -597.28 -336.04 2.35 3351 3203.10 32.44 239.08 -625.99 -353.07 1.47 3414 3256.02 33.30 241.01 -655.61 -370.14 2.15 3477 3308.54 33.74 239.62 -685.83 -387.37 1.40 · [:I EPOCH 27 . UNOCALe Happy Valley #6 SURVEY INFORMATION Happy Valley #6 . Measured TVD Inclination Azimuth E (+) W (-) N (+) S (-) Dog Leg Feet Feet Degrees Degrees Degrees! 3540 3360.91 33.79 240.38 -716.16 -404.87 0.68 3603 3413.11 34.33 240.24 -746.81 -422.35 0.87 3666 3464.84 35.26 240.68 -778.09 -440.07 1.53 3730 3517.04 35.44 241.16 -810.45 -458.07 0.52 3793 3568.42 35.29 239.17 -842.07 -476.21 1.84 3856 3620.01 34.76 240.21 -873.29 -494.46 1.27 3919 3671.80 34.67 237.86 -904.05 -512.91 2.13 3982 3723.63 34.61 238.13 -934.41 -531.89 0.26 4045 3775.64 34.10 238.85 -964.72 -550.47 1.04 4108 3827.84 33.99 237.89 -994.75 -568.97 0.87 4172 3880.66 34.79 238.72 -1025.51 -587.96 1.45 4235 3932.36 34.92 240.15 -1056.51 -606.27 1.31 4298 3984.17 34.43 239.48 -1087.49 -624.29 0.99 4361 4036.08 34.60 239.76 -1118.29 -642.34 0.37 4424 4087.75 35.19 239.96 -1149.46 -660.44 0.95 4487 4139.33 34.88 239.80 -1180.74 -678.58 0.51 4551 4191.95 34.52 241.35 -1212.47 -696.48 1.49 4614 4243.82 34.64 240.81 -1243.77 -713.78 0.52 4677 4295.57 34.92 240.38 -1275.07 -731.42 0.59 4740 4347.29 34.72 240.26 -1306.33 -749.23 0.34 4803 4399.14 34.50 239.60 -1337.29 -767.16 0.69 4866 4451.21 34.02 239.28 -1367.83 -785.19 0.81 4929 4503.42 34.05 240.45 -1398.33 -802.89 1.04 4992 4555.64 33.97 239.72 -1428.87 -820.47 0.66 5055 4607.92 33.86 238.05 -1458.96 -838.63 1.49 5118 4660.28 33.71 238.13 -1488.70 -857.15 0.25 5181 4712.47 34.44 236.99 -1518.49 -876.08 1.54 5244 4764.19 35.20 239.12 -1549.01 -895.11 2.28 5307 4815.53 35.62 239.64 -1580.43 -913.70 0.82 5370 4866.31 36.99 237.30 -1612.21 -933.22 3.09 . U EPOCH 28 . UNOCALe Happy Valley #6 SURVEY INFORMATION Happy Valley #6 . Measured TVD Inclination Azimuth E (+) W (-) N (+) S (-) Dog Leg Feet Feet Degrees Degrees Degreesl 5433 4916.43 37.57 237.24 -1644.31 -953.85 0.92 5497 4966.93 38.24 236.75 -1677.28 -975.27 1.15 5560 5016.20 38.87 236.92 -1710.15 -996.75 1.01 5623 5065.07 39.40 235.35 -1743.16 -1018.90 1.78 5686 5113.49 40.14 236.09 -1776.47 -1041.60 1.39 5715 5135.61 40.46 235.11 -1791.94 -1052.20 2.45 5798 5198.49 41.03 236.00 -1836.62 -1082.84 0.98 5862 5246.65 41.36 233.74 -1871.08 -1107.09 2.38 5925 5294.53 39.70 235.14 -1904.38 -1130.91 3.00 5988 5343.40 38.57 232.20 -1936.41 -1154.45 3.45 6051 5392.88 37.94 231.94 -1967.18 -1178.42 1.03 6177 5493.23 36.47 232.62 -2027.44 -1225.04 1.21 6303 5596.18 33.93 234.76 -2085.93 -1268.07 2.24 6429 5700.27 34.68 234.09 -2143.69 -1309.39 0.67 6492 5752.25 34.13 234.40 -2172.57 -1330.19 0.92 6618 5855.94 35.10 233.08 -2230.28 -1372.53 0.97 6745 5960.24 34.50 229.57 -2286.85 -1417.79 1.65 6871 6063.07 36.10 229.22 -2342.13 -1465.18 1.28 6997 6163.93 37.56 226.14 -2397.93 -1516.04 1.87 7123 6263.81 37.57 222.84 -2451.75 -1570.83 1.60 7250 6365.23 36.45 221.76 -2503.20 -1627.36 1.02 7376 6466.41 36.72 218.02 -2551.34 -1684.96 1.78 7502 6567.72 36.27 214.06 -2595.42 -1745.52 1.90 7628 6670.49 34.44 217.08 -2637.78 -1804.83 2.01 7754 6775.12 33.27 218.17 -2680.62 -1860.43 1.05 7881 6881.81 32.43 218.08 -2723.16 -1914.62 0.66 8007 6988.73 31.46 218.94 -2764.66 -1966.79 0.85 8133 7096.31 31.28 217.53 -2805.25 -2018.31 0.60 8259 7202.55 33.76 219.64 -2847.52 -2071.22 2.16 8386 7307.48 34.83 216.51 -2891.62 -2127.55 1.62 . g EPOCH 29 UNOCALe Happy Valley #6 · SURVEY INFORMATION Happy Valley #6 · Measured TVD Inclination Azimuth E (+) W (-) N (+) S (-) Dog Leg Feet Feet Degrees Degrees Degreesl 8512 7411.10 34.53 217 .25 -2934.64 -2184.90 0.41 8638 7515.55 33.48 217.80 -2977.56 -2240.79 0.87 8764 7619.80 34.85 215.90 -3019.97 -2297.41 1.38 8891 7723.88 35.08 215.84 -3062.62 -2356.39 0.18 9017 7827.45 34.35 215.44 -3104.43 -2414.70 0.61 9143 7931.88 33.71 211.71 -3143.43 -2473.42 1.73 9270 8038.09 32.79 212.01 -3180.18 -2532.56 0.74 9396 8144.93 31.23 211.69 -3215.43 -2589.29 1.25 9522 8252.44 31.66 216.01 -3252.03 -2643.84 1.82 9649 8361.14 30.61 215.95 -3290.61 -2696.98 0.83 9775 8469.69 30.44 213.26 -3326.95 -2749.64 1.09 9901 8579.20 28.84 215.04 -3361.90 -2801.21 1.45 10027 8690.43 27.20 216.74 -3396.58 -2849.17 1.45 10153 8802.85 26.48 218.01 -3431.11 -2894.38 0.73 10280 8918.14 23.08 217.30 -3463.64 -2936.51 2.69 10406 9035.73 18.98 219.19 -3491.56 -2972.05 3.30 10532 9155.82 16.21 221.53 -3516.18 -3001.10 2.27 10658 9277.35 14.41 225.50 -3539.02 -3025.26 1.65 10784 9399.89 12.47 229.94 -3560.62 -3045.01 1.74 10911 9524.33 10.61 239.10 -3581.15 -3059.84 2.05 11037 9648.47 9.15 249.16 -3600.47 -3069.36 1.79 11163 9772.95 8.72 261.90 -3619.29 -3074.27 1.60 11289 9897.54 8.54 275.63 -3638.06 -3074.70 1.64 11416 10023.04 9.10 282.05 -3657.26 -3071.68 0.89 11542 10147.40 9.47 295.22 -3676.39 -3065.18 1.71 11668 10271.67 9.55 299.54 -3694.86 -3055.61 0.57 11749 10351.48 10.12 304.37 -3706.58 -3048.28 1.24 PROJECTED TO TOTAL DEPTH 11798 10399.72 10.12 304.37 -3713.68 -3043.42 0.00 · U EPOCH 30 UNOEALe Happy Valley #6 DAILY MUD PROPERTIES Date FI Depth Den FV PV YP Gels API FiI Cake Solids OillWater Sand PH CI Ca Temp 4/6/04 68 71 8.8 66 7 28 11114/17 17.8 1/0 0.7 0/96.5 0 8.0 33000 160 4/7/04 80 295 8.9 58 10 26 11114/17 15.6 1/0 1.4 0/96 0.50 8.0 30500 120 4/8/04 85 1075 8.9 54 9 24 11/14/16 16.5 2/0 1.5 0/96 0.33 8.0 29500 120 4/9/04 66 1075 9.0 55 11 24 10/14/17 11.5 1/0 2.5 0/95 0.25 8.3 30500 140 4/10104 76 1245 9.0 46 9 17 7/9112 11.2 1/0 4.6 0/95 0.25 9.8 31000 80 4/11/04 84 2640 9.0 50 10 20 10/12/14 11.6 1/0 2.6 0/95 0.25 9.3 28500 100 4/12104 95 4315 9.1 47 11 23 10/12/14 9.8 2/0 3.6 0/94 0.30 8.1 29000 100 4/13/04 62 5120 9.2 48 12 18 7/9112 8.8 2/0 3.6 0/94 0.30 8.0 29500 120 4/14/04 85 5537 9.3 47 11 21 9/12/15 8.6 2/0 4.4 0/93 0.30 8.0 31500 100 4/15/04 80 5760 9.30 45 11 20 9/12/14 8.2 0/2 6.6 0/93 0.25 8.0 2900 120 Mud System Converted from Water Base to Oil Base Date FI Depth Den FV PV YP Gels HTHP FiI Cake Solids OillWater Sand Porn Lime Stab Temp 4116/04 74 5781 9.00 82 41 14 7/15/17 5.2 0/3 9.4 85.4114.6 0.10 2.60 3.37 1352 4/17/04 95 7288 9.10 86 24 9 6/16/17 5.4 0/3 10.4 85.2/14.8 0.10 2.80 3.63 1445 4/18/04 100 8717 9.20 94 27 10 9/19/21 4.6 0/3 11.1 83.9/16.1 0.05 2.30 2.98 1677 4/19/04 108 10380 9.20 84 29 10 9/18/21 5.0 0/3 11.2 85.1/14.9 0.10 2.00 2.59 1685 4/20104 110 11 030 9.30 80 33 12 11/20/22 4.8 0/3 10.3 85.2114.8 0.10 2.20 3.97 10.99 4/21/04 111 11475 9.35 81 29 10 1 0/20/22 4.6 0/3 10.4 86.4113.6 0.10 1.80 2.33 1739 4/22/04 94 11798 9.45 84 29 11 10/22/25 4.8 0/3 11.3 85.1/14.9 0.10 1.90 2.46 1764 4/23/04 11798 9.45 84 29 11 10/22/24 4.8 0/3 12.4 86.0/14.0 0.10 1.80 2.33 1582 . f:I EP~(:H . 31 UNOCALe Happy Valley #6 BIT RECORD BIT RECORD Happy Valley #6 Bit Grading I 0 D L B G 0 R N U U 0 E A T E N T L C A U H A E E L A R G E S R R T I E R 0 C I N N R R H 0 G C 0 0 A N S H P W W R A U S S R L L E D Bit Size Make Type SIN Jets Depth Depth Drilled Hours Ave Ave Ave Ave No. In Out FtlHr WOB RPM PSI 1 12.25 HTC MX-C1 6017017 3x18,1 67 1075 1008 7.80 183.0 8.4 142 735 1 1 N A E 1 N T x15 0 0 D 2RR 8.5 HYC DS- 24313 6 x 12 1075 5126 4051 25.96 156.0 10.0 60 2350 2 5 W H X 1 C B 70FNPV T / T H 8 A 3 8.5 HYC DS-70FN 6 x12 5126 5760 634 9.71 65.3 5.1 61 2310 0 1 W A X 1 N T T 0 D 4 6.125 HC HCM406 7102577 3 x 16 5760 11798 6038 90.58 66.7 7.2 73 3150 1 4 W T X 1 C T T T D . [:I EP~(~H 32 . . UNOCAL AFE #162171 DAIL Y WELLSITE REPORT U EPOCH Happy Valley #6 REPORT FOR SHANE HAUCK DATE 4/7/04 DEPTH 50 PRESENT OPERATION= RIGGING UP TIME 03:00 YESTERDAY 50 24 Hour Footage 0 CASING INFORMATION 16" @ 71' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25" HTC MX-C1 N/A N/A 71 0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 0.0 @ 50 0 @ 50 -1.$ ftIhr SURFACE TORQUE 0 @ 50 0 @ 50 -1.$ amps WEIGHT ON BIT 0 @ 50 0 @ 50 -1.$ Klbs ROTARY RPM 0 @ 50 0 @ 50 -1.$ RPM PUMP PRESSURE 0 @ 50 0 @ 50 -1.$ psi DRILLING MUD REPORT DEPTH: 71' MW 8.8 VIS 66 PV 7 YP 28 FL 17.8 Gels 11/14/17 CL- 33000 FC 1/0 SOL 0.7 SD 0 OIL 0 MBL pH 8.0 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 0 @ 0 0 @ 0 0 TRIP GAS= 0 CUTTING GAS 0 @ 0 0 @ 0 0 WIPER GAS= 0 CHROMATOGRAPHY(ppm) SURVEY= 0 METHANE(C-1) 0 @ 0 0 @ 0 0 CONNECTION GAS HIGH= 0 ETHANE(C-2) 0 @ 0 0 @ 0 0 AVG= 0 PROPANE(C-3) 0 @ 0 0 @ 0 0 CURRENT 0 BUTANE(C-4) 0 @ 0 0 @ 0 0 CURRENT BACKGROUND/AVG 0 PENTANE(C-5) 0 @ 0 0 @ 0 0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY RIG UP HAPPY VALLEY #6 EPOCH RIGGED UP AND READY TO LOG Epoch Personel On Board= 2 Daily Cost $2065 w/2 man gas logging on 12.25" hole . Report by: LEES F. BROWNE JR. . . UNOCAl AFE #162171 DAIL Y WELLSITE REPORT U EPOCH Happy Valley #6 REPORT FOR DATE Apr 08,2004 DEPTH 779.00 PRESENT OPERATION= DRilLING TIME 03:00 YESTERDAY 68.00 24 Hour Footage 711 CASING INFORMATION DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PUllED 1 12.25 HTC MXC1 NA 3X18,1X15 68 6.0 DRilLING PARAMETERS HIGH lOW AVERAGE CURRENT AVG RATE OF PENETRATION 516.5 @ 274.00 7.7 @ 81.00 177.9 150.63171 fUhr SURFACE TORQUE 5149 @ 714.00 1222 @ 68.00 2716.5 3678.02124 amps WEIGHT ON BIT 16 @ 349.00 1 @ 72.00 9.0 8.73803 Klbs ROTARY RPM 173 @ 456.00 14 @ 68.00 142.3 154.68285 RPM PUMP PRESSURE 883 @ 778.00 238 @ 68.00 718.0 877.00684 psi DRilLING MUD REPORT DEPTH: 295' MW 8.9 VIS 58 PV 10 YP 26 Fl 15.6 Gels 11/14/17 Cl- 30500 FC 1/0 SOL 1.4 SD 0.50 Oil 0 MBl pH 8.0 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH lOW AVERAGE DITCH GAS 7 @ 588.00 0 @ 769.00 0.9 TRIP GAS= 0 CUTTING GAS 0 @ 0 0 @ 0 0 WIPER GAS= 0 CHROMATOGRAPHY(ppm) SURVEY= 0 METHANE(C-1 ) 1290 @ 587.00 34 @ 486.00 152.7 CONNECTION GAS HIGH= 0 ETHANE(C-2) 0 @ 779.00 0 @ 779.00 0.0 A VG= 0 PROPANE(C-3) 0 @ 779.00 0 @ 779.00 0.0 CURRENT 0 BUTANE(C-4) 0 @ 779.00 0 @ 779.00 0.0 CURRENT BACKGROUND/AVG 2 PENTANE(C-5) 0 @ 779.00 0 @ 779.00 0.0 HYDROCARBON SHOWS NO GAS SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY SAMPLES CAUGHT UNDER SURFACE CASING PRESENT LITHOLOGY DAilY ACTIVITY FINISH RIGGING UP, HELD PRE SPUD MEETING AND SPUDDED THE WELL. DRilLING AHEAD. NO RIG SUMMARY DELAYS. Epoch Personel On Board= 2 Daily Cost $2065 Report by: lEES F. BROWNE JR. . . . UNOCAL AFE #162171 DAILY WELLSITE REPORT (J EPOCH Happy Valley #6 REPORT FOR SHANE HAUCK DATE Apr 10, 2004 DEPTH 1075.00 PRESENT OPERATION= TEST BOPE TIME 03:00 YESTERDAY 1075.00 24 Hour Footage 0 CASING INFORMATION 95/8" @ 1075' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 0 @ 0 0 @ 0 0 0 ftIhr SURFACE TORQUE 0 @ 0 0 @ 0 0 0 amps WEIGHT ON BIT 0 @ 0 0 @ 0 0 0 Klbs ROTARY RPM 0 @ 0 0 @ 0 0 0 RPM PUMP PRESSURE 0 @ 0 0 @ 0 0 0 psi DRILLING MUD REPORT DEPTH: 1075' MW 9.0 VIS 55 PV 11 YP 24 FL 11.5 Gels 10/14/17 CL- 30500 FC 1/0 SOL 2.5 SD 0.25 OIL 0 MBL pH 8.3 Ca+ 140 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 0 @ 0 0 @ 0 0 TRIP GAS= 0 CUTTING GAS 0 @ 0 0 @ 0 0 WIPER GAS= 0 CHROMATOGRAPHY(ppm) SURVEY= 0 METHANE(C-1 ) 0 @ 0 0 @ 0 0 CONNECTION GAS HIGH= 0 ETHANE(C-2) 0 @ 0 0 @ 0 0 AVG= 0 PROPANE(C-3) 0 @ 0 0 @ 0 0 CURRENT 0 BUTANE(C-4) 0 @ 0 0 @ 0 0 CURRENT BACKGROUND/AVG 0 PENTANE(C-5) 0 @ 0 0 @ 0 0 HYDROCARBON SHOWS NO GAS SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY SAMPLES CAUGHT UNDER SURFACE CASING PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY FINISH PUMPING CEMENT TO 9 5/8" CASING, NIPPLE UP BOPE AND TEST. . Epoch Personel On Board= 4 Daily Cost $2325 w/ sample catchers Report by: LEES F. BROWNE JR. . · UNOCAL AFE #162171 DAIL Y WELLSITE REPORT U EPOCH Happy Valley #6 REPORT FOR SHANE HAUCK DATE Apr11,2004 DEPTH 1760.00 PRESENT OPERATION= DRILLING TIME 03:00 YESTERDAY 1075.00 24 Hour Footage 685 CASING INFORMATION 9.625" @ 1075' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2RR 8.5" HYC DS-70FNPV 24313 1075 3.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 469.5 @ 1184.00 3.6 @ 1755.00 263.1 252.34026 fUhr SURFACE TORQUE 3402 @ 1075.00 SLIDE @ 1504.00 1311.1 SLIDE amps WEIGHT ON BIT 10 @ 1075.00 0.5 @ 1756.00 2.8 0.33841 Klbs ROTARY RPM 143 @ 1075.00 SLIDE @ 1710.00 44.4 SLIDE RPM PUMP PRESSURE 1655 @ 1745.00 632 @ 1095.00 1328.3 1638.88538 psi DRILLING MUD REPORT DEPTH: 1245' MW 9.0 VIS 46 PV 9 YP 17 FL 11.2 Gels 7/9/12 CL- 3100 Fe 1/0 SOL 4.6 SD 0.25 OIL 0 MBL pH 9.8 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 30 @ 1727.00 0 @ 1099.00 6.9 TRIP GAS= 0 @ 1075' CUTTING GAS 0 @ 1760.00 0 @ 1760.00 0.0 WIPER GAS= 0 CHROMATOGRAPHY(ppm) SURVEY= 0 METHANE(C-1 ) 6000 @ 1727.00 60 @ 1099.00 1294.2 CONNECTION GAS HIGH= 0 ETHANE(C-2) 0 @ 1760.00 0 @ 1760.00 0.0 AVG= 0 PROPANE(C-3) 0 @ 1760.00 0 @ 1760.00 0.0 CURRENT 0 BUTANE(C-4) 0 @ 1760.00 0 @ 1760.00 0.0 CURRENT BACKGROUND/AVG 8 PENTANE(C-5) 0 @ 1760.00 0 @ 1760.00 0.0 HYDROCARBON SHOWS NO GAS SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY SILT, CLAY, SAND, COAL PRESENT LITHOLOGY 1760' = 70% SAND, 30% CLAY DAILY FINISH TESTING BOPE AND PICK UP BHA AND TRIP IN THE HOLE, TAG CEMENT AT 996' AND DRILL OUT CEMENT AND ACTIVITY 20' OF NEW FORMATION, RUN LEAK OFF TEST TO 13.1 EMW, DRILL ANOTHER 10' AND RUN ANOTHER LEAK OFF TEST SUMMARY WITH THE SAME RESULTS, HELD A SAFETY MEETING AND BEGAN TO DRILL FORMATION. CONNECTION TIMES: HIGH= 16, LOW = 11, AVERAGE = 12. NO RIG REPAIRS OR DOWN TIME · Epoch Personel On Board= 4 Daily Cost $2325 Report by: LEES F. BROWNE JR. · . UNOCAl AFE #162171 DAIL Y WELLSITE REPORT [1 EPOCH Happy Valley #6 REPORT FOR SHANE HAUCK DATE Apr 12, 2004 DEPTH 3565 PRESENT OPERATION= DRilLING TIME 03:00 YESTERDAY 1760 24 Hour Footage 1805 CASING INFORMATION 9.625" @ 1075' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 1774 12.29 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2RR 8.5 HYC DS-70FNPV 24313 1075 2490 15.12 In Hole DRilLING PARAMETERS HIGH lOW AVERAGE CURRENT AVG RATE OF PENETRATION 725.8 @ 2001 8.5 @ 2133 240.6 95.5 ftlhr SURFACE TORQUE 7292 @ 3398 0 @ Sliding 5278.6 6203.6 amps WEIGHT ON BIT 14 @ 3250 0.5 @ 1780 4.6 8.8 Klbs ROTARY RPM 90 @ 2450 0 @ Sliding 44.2 61.6 RPM PUMP PRESSURE 2305 @ 3353 1159 @ 2827 1829.0 2042.9 psi DRilLING MUD REPORT DEPTH: 3270 MW 9.1 VIS 50 PV 10 YP 23 Fl 10.4 Gels 10/12/14 Cl- 31500 FC 1 SOL 2.9 SD 0.25 Oil 0 MBl 2.5 pH 9.3 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH lOW AVERAGE DITCH GAS 159 @ 3353 1 @ 2941 20.2 TRIP GAS= CUTTING GAS @ @ WIPER GAS= CHROMA TOGRAPHY(ppm) SURVEY= METHANE(C-1) 36456 @ 3353 250 @ 2941.00 3921.8 CONNECTION GAS HIGH= ETHANE(C-2) 53 @ 3353 0 @ 4.3 AVG= PROPANE(C-3) 3 @ 3353 0 @ 0.0 CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 1 /8 PENTANE(C-5) @ @ HYDROCARBON SHOWS NO GAS SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY TUFFACEOUS CLAY, SAND, SilTSTONE PRESENT LITHOLOGY 3530' = 70% TUFFACEOUS CLAY, 10% TUFFACEOUS SilTSTONE, 10% SAND, 10% CONGLOMERA TIC SAND DAilY ACTIVITY SUMMARY Drill (rotating and sliding) from 1760' to 3565' and continue to drill ahead. . Epoch Personel On Board= 4 Daily Cost $2325 Report by: Craig Silva . · UNOCAL AFE #162171 DAIL Y WELLSITE REPORT U EPOCH Happy Valley #6 REPORT FOR SHANE HAUCK DATE Apr 13, 2004 DEPTH 5126 PRESENT OPERATION= PULLING OUT OF HOLE AFTER FAILING TO SLIDE TIME 03:00 YESTERDAY 3565 24 Hour Footage 1561 CASING INFORMATION 9.625" @ 1075' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 3540 33.79 240.38 3360.91 5055 33.86 238.05 4607.92 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2RR 8.5 HYC DS-70FNPV 24313 1075 4051 25.96 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 402.7 @ 4225.00 12.5 @ 4627.00 234.5 194.7 ftfhr SURFACE TORQUE 11752 @ 4267.00 0 @ Sliding 6877.9 6158.5 amps WEIGHT ON BIT 18 @ 4371.00 1 @ 4216.00 5.7 2.4 Klbs ROTARY RPM 102 @ 5004.00 0 @ Sliding 64.2 78.6 RPM PUMP PRESSURE 2879 @ 4727.00 1542 @ 4279.00 2451.0 2609.5 psi DRILLING MUD REPORT DEPTH: 5064 MW 9.2 VIS 46 PV 12 YP 21 FL 9.2 Gels 8/10/14 CL- 29500 FC 2 SOL 4.1 SD 0.5 OIL 0 MBL 5.0 pH 8.0 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 74 @ 3637.00 1 @ 3537.00 21.5 TRIP GAS= CUTTING GAS @ @ WIPER GAS= CHROMATOGRAPHY(ppm) SURVEY= METHANE(C-1) 14897 @ 3637.00 391 @ 3537.00 4206.0 CONNECTION GAS HIGH= ETHANE(C-2) 71 @ 3637.00 0 @ 12.2 AVG= PROPANE(C-3) 4 @ 3802.00 0 @ 0.1 CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS NO GAS SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY TUFFACEOUS CLAY, SAND/SANDSTONE, TUFFACEOUS SILTSTONE, COAL PRESENT 5126' = 60% TUFFACEOUS CLAY, 20% SAND/SANDSTONE, 10% TUFFACEOUS SILTSTONE, 10% TUFFACEOUS LITHOLOGY SHALE DAILY ACTIVITY SUMMARY Drill (rotating and sliding) from 3565' to 5126'. Unable to slide at 5126'. CBU. POOH. · Epoch Personel On Board= 4 Daily Cost $2325 Report by: Craig Silva · · UNOCAL AFE # 162171 DAILY WELLSITE REPORT g EPOCH HAPPY VALLEY #6 REPORT FOR DON FOWLER DATE Apr 14, 2004 DEPTH 5348 PRESENT OPERATION= DRILLING TIME 03:00 YESTERDAY 5126 24 Hour Footage 222 CASING INFORMATION 9.625" @ 1075' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5118 33.71 238.13 4660.28 5244 35.20 239.12 4764.19 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.5 HYC DS-70FNPV 21504 6x 12 5126 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 200.8 @ 5109 24.2 @ 5125 115.3 100.9 ft/hr SURFACE TORQUE 7125 @ 5168 0 @ Sliding 6046.7 6495.7 amps WEIGHT ON BIT 7 @ 5125 1 @ 5123 4.4 4.8 Klbs ROTARY RPM 78 @ 5115 0 @ Sliding 61.1 66.9 RPM PUMP PRESSURE 2810 @ 5162 2041 @ 5129 2565.2 2688.7 psi DRILLING MUD REPORT DEPTH: 5126 MW 9.2 VIS 62 PV 12 YP 18 FL 8.8 Gels 7/9/12 CL- 29500 FC 2 SOL 3.6 SD 0.30 OIL 0 MBL 5.0 pH 8.0 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 26 @ 5206 4 @ 5222 9.9 TRIP GAS= 26 CUTTING GAS @ @ WIPER GAS= CHROMATOGRAPHY(ppm) SURVEY= METHANE(C-1) 5372 @ 5206 886 @ 5222 1968.5 CONNECTION GAS HIGH= ETHANE(C-2) 14 @ 5110 1 @ 5222 5.4 AVG= PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 7/25 PENTANE(C-5) @ @ HYDROCARBON SHOWS NO GAS SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY TUFFACEOUS CLAY, SAND/SANDSTONE, TUFFACEOUS SILTSTONE, CARBONACEOUS SHALE PRESENT 5220 = CARBONACEOUS SHALE 30%, TUFFACEOUS CLAY 40%, TUFFACEOUS SILTSTONE 20%, VOLCANIC ASH LITHOLOGY 10% DAILY ACTIVITY Pull and pump all the way out of hole. Change out bit and stabilizer (both undergauge). Run in hole. Work on mud system SUMMARY during trip out and in. Slip and cut drill line while running in. Ream from 5029' to bottom. Drill (rotating) from 5126' to 5348'. · Epoch Personel On Board= 4 Daily Cost $2325 Report by: Craig Silva · . UNOCAL AFE # 162171 DAIL Y WELLSITE REPORT U EPOCH HAPPY VALLEY #6 REPORT FOR DON FOWLER DATE Apr15,2004 DEPTH 5760 PRESENT OPERATION= DRILLING TIME 03:00 YESTERDAY 5348 24 Hour Footage 412 CASING INFORMATION 9.625" @ 1075' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5307 35.62 239.64 4815.53 SURVEY DATA 5497 38.24 236.75 4966.93 5715 40.46 235.11 5135.61 5760 (Projected) 40.90 234.10 5169.73 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.5 HYC DS-70FNPV 21504 6 x 12 5126 5760 634 9.71 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 212.7 @ 5572 10.1 @ 5481 100.3 150.7 ftIhr SURFACE TORQUE 9673 @ 5574 0 @ Sliding 5846.1 6766.6 amps WEIGHT ON BIT 17 @ 5549 1 @ 5395 5.2 5.8 Klbs ROTARY RPM 84 @ 5279 0 @ Sliding 50.5 60.5 RPM PUMP PRESSURE 2810 @ 5162 1245 @ 5579 2118.6 1840.6 psi DRILLING MUD REPORT DEPTH: 5760 MW 9.2 VIS 46 PV 11 YP 19 FL 8.4 Gels 8/10/13 CL- 29500 FC 1 SOL 4.1 SD 0.25 OIL 0 MBL 5.0 pH 8.0 Ca+ 140 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 83 @ 5526 4 @ 5548 24.4 TRIP GAS= CUTTING GAS @ @ WIPER GAS= CHROMA TOGRAPHY(ppm) SURVEY= METHANE(C-1) 16585 @ 5526 880 @ 5548 4924.8 CONNECTION GAS HIGH= ETHANE(C-2) 59 @ 5384 1 @ 5222 14.1 AVG= PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG N/A (Pooh) PENTANE(C-5) @ @ HYDROCARBON SHOWS NO GAS SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY TUFFACEOUS CLAYSTONE, TUFFACEOUS SILTSTONE, SAND/SANDSTONE, CARBONACEOUS SHALE/COAL PRESENT LITHOLOGY 5760 =TUFFACEOUS CLAY 50%, TUFFACEOUS SILTSTONE 30%, CARBONACEOUS SHALE 10%, SANDSTONE 10% DAILY Drill from 5130' to 5365'. Lose hydraulic power due to hydraulic oil flash fire. Put out fire. Hold safety meeting. Circulate and ACTIVITY condition mud. Drill from 5365' to 5725'. Circulate hole clean and condition. Pull 1 stand and change swivel packing. Run to SUMMARY bottom. Drill from 5725' to 5760' (7" casing point). CBU. Circulate around carbide flag. Pump out of hole from 5760' to 5153'. POOH from 5153' to 2953'. . Epoch Personel On Board= 4 Daily Cost $2325 . Report by: Craig Silva . UNOCAL AFE # 162171 DAIL Y WELLSITE REPORT g EPOCH HAPPY VALLEY #6 REPORT FOR DON FOWLER DATE Apr 16, 2004 DEPTH 5760 PRESENT OPERATION= RIGGING UP TO SET PACKOFF FOR 7" CASING TIME 03:00 YESTERDAY 5760 24 Hour Footage 0 CASING INFORMATION 7" @ 5753' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ ft/hr SURFACE TORQUE @ @ amps WEIGHT ON BIT @ @ Klbs ROTARY RPM @ @ RPM PUMP PRESSURE @ @ psi DRILLING MUD REPORT DEPTH: 5760' MW 9.3 VIS 80 PV 11 YP 20 FL 8.2 Gels 9/12/14 CL- 2900 FC 0 SOL 6.6 SD 0.25 OIL 0 MBL 5.0 pH 8.0 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 29 @ 5753' Trip Gas 2@ Before bump plug 4 before cementing TRIP GAS= 29 CUTTING GAS @ @ WIPER GAS= CHROMA TOGRAPHY(ppm) SURVEY= METHANE(C-1) @ @ CONNECTION GAS HIGH= ETHANE(C-2) @ @ AVG= PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY N/A PRESENT LITHOLOGY N/A POOH from 2953' to shoe at 1060'. (Dismantle and repair grabber during trip out). Monitor well. (Observe 2.4 bph static loss). Stand back 4" HWDP. Lay down BHA. Make up test joint. Pull wear ring. Lay down test joint. Perform rig maintenance. Pull grabber body from Topdrive for welding. Rig up to run 7" casing. (Lay down tongs, change bails and links, rig up fill-up line,rig up power tongs and DAILY change out elevators). Hold PJSM. Pick up and run in and Bakerlok first 3 joints (shoe joint-joint-float collar joint) of 1" casing. ACTIVITY Continue to run 7" casing to 2863'. Circulate and condition mud. Continue running 7" casing from 2863' to 5753'. Circulate and SUMMARY condition mud for cement job (at 4 bbls/min, 60 spm, 450psi). Hold meeeting on cementing procedures. Switch to cementers. Pump 3 bbs water. Test cementing lines to 4500psi. Pump 50 bbls mud push. Batch up and pump 76 bbls 12.8ppg lead cement and then 47 bbls 15.8ppg tail cement. Shut down and drop plug. Pump 5 bbls mix water. Switch to rig pump and pump down plug with mud at 78spm. Bump plug. Pressure test to 4000psi. Floats held. Rig down and lay down landing joint and all cementing equipment. Rig up to set packoff. . . Epoch Personel On Board= 4 Daily Cost $2325 Report by: Craig Silva . UNOCAL AFE # 162171 DAIL Y WELLSITE REPORT g EPOCH HAPPY VALLEY #6 REPORT FOR DON FOWLER DATE Apr 17, 2004 DEPTH 5985 PRESENT OPERA TION= DRILLING TIME 03:00 YESTERDAY 5760 24 Hour Footage 225 CASING INFORMATION 7" @ 5753' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5798 41.03 236.00 5198.50 5925 39.70 235.14 5294.54 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 6.125 HC HCM406 7102577 3x12 5760 225 1.92 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 225.9 @ 5855 20.0 @ 5762 159.0 130.79427 ft/hr SURFACE TORQUE 5285 @ 5858 2985 @ 5761 4779.5 4813.19434 amps WEIGHT ON BIT 13 @ 5761 1 @ 5784 5.1 5.14551 Klbs ROTARY RPM 71 @ 5771 55 @ 5762 67.2 68.21522 RPM PUMP PRESSURE 2866 @ 5850 1331 @ 5761 2720.2 2666.07764 psi DRILLING MUD REPORT DEPTH: 5782 MW 9.0 VIS 74 PV 41 YP 14 FL Gels 7/15/17 CL- FC 0 SOL 9.4 SD 0.10 OIL 76 MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 122 @ 5846 8 @ 5782 45.7 TRIP GAS= CUTTING GAS @ @ WIPER GAS= CHROMATOGRAPHY(ppm) SURVEY= METHANE(C-1 ) 24399 @ 5846 1531 @ 5782 9052.3 CONNECTION GAS HIGH= ETHANE(C-2) 50 @ 5799 5 @ 5782 23.8 AVG= PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 25/40 PENTANE(C-5) @ @ HYDROCARBON MINOR GAS SHOW SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 5845-5860 Sandstone: well sorted, fn Before/during/after gas: Abundantly disaggregted, clay matrix supported, friable when upper 18/122/50 units consol, poor to fair vis porosity; spotty calcite cmtd gr spprtd. LITHOLOGY TUFFACEOUS CLAYSTONE, TUFFACEOUS SILTSTONE, SANDSTONE, CARBONACEOUS SHALE/COAL PRESENT 5908 = TUFFACEOUS CLAYSTONE 40%, TUFFACEOUS SILTSTONE 40%, CARBONACEOUS SHALE 10%, LITHOLOGY SANDSTONE 10% DAILY Set packoff. Test all BOPE. Make up new BHA with 6.125" bit and 4.75" motor. Run in hole to 5596'. Clean pits while making up ACTIVITY BHA and running in hole. Test casing. Break circulation and work pipe. Pump sweep around. Displace water base mud with oil base SUMMARY mud above float. Drill out float show to casing shoe track. Drill out casing shoe and drill 22' of new hole from 5760' to 5782'. CBU and clean hole. Perform Formation Integrity Test (to 19.84 EMW). Drill (rotating and sliding) from 5782' to 5985'. . . Epoch Personel On Board= 4 Daily Cost $2325 Report by: Craig Silva . UNOCAL AFE # 162171 DAIL Y WELLSITE REPORT ~ EPOCH HAPPY VALLEY #6 REPORT FOR DON FOWLER DATE Apr 18, 2004 DEPTH 8244 PRESENT OPERA TION= DRILLING TIME 03:00 YESTERDAY 5985 24 Hour Footage 2259 CASING INFORMATION 7" @ 5753' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5988 38.57 232.20 5343.40 SURVEY DATA 6997 37.56 226.14 6163.93 8007 31.46 218.94 6988.73 8259 33.76 219.64 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 6.125 HC HCM406 7102577 3 x 12 5760 2484 17.92 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 374.2 @ 6163 17.1 @ 5920 185.0 75.3 ft/hr SURFACE TORQUE 8296 @ 6226 0 @ 6929 4391.6 1382.2 amps WEIGHT ON BIT 21 @ 7944 1 @ 6848 7.5 12.5 Klbs ROTARY RPM 98 @ 6346 0 @ 6923 62.0 79.5 RPM PUMP PRESSURE 3756 @ 6323 1675 @ 7045 2994.9 2924.2 psi DRILLING MUD REPORT DEPTH: 7995 MW 9.1 VIS 82 PV 25 YP 11 FL 4.8 Gels 8/18/21 CL- FC 0 SOL 10.3 SD 0.10 OIL 75.0 MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 343 @ 6693 8 @ 6955 68.3 TRIP GAS= CUTTING GAS @ @ WIPER GAS= CHROMATOGRAPHY(ppm) SURVEY= METHANE(C-1) 68554 @ 6693 1697 @ 6955 13332.0 CONNECTION GAS HIGH= ETHANE(C-2) 81 @ 8099 2 @ 7882 22.2 AVG= PROPANE(C-3) 15 @ 8152 0 @ 0.4 CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 35/85 PENTANE(C-5) @ @ HYDROCARBON A NUMBER OF MINOR GAS SHOWS IN REPORT INTERVAL SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION Atleast 15 minor gas All sandstone zones with more than Extended background of 20 units Most sand zones are clay matrix supported shows in sandstone 100U of gas; most do NOT appear to before and after each zone; high with poor visible porosity; rare examples of sections have good porosity gas ranges from 86 to 272 units. calcite cmtd gr spprtd ss have poor to fair porosity . LITHOLOGY TUFFACEOUS CLAYSTONE, SANDSTONE/SAND, TUFFACEOUS SILTSTONE, COAUCARBONACEOUS SHALE PRESENT LITHOLOGY 8162 = SANDSTONE 40%, VOLCANIC ASH 40%, TUFFACEOUS CLAYSTONE 10%, TUFFACEOUS SILTSTONE 10% DAILY ACTIVITY SUMMARY Drill (rotating and sliding) from 5985' to 8244'. . . Epoch Personel On Board= 4 Daily Cost $2325 Report by: Craig Silva · UNOCAL AFE # 162171 DAIL Y WELLSITE REPORT g EPOCH HAPPY VALLEY #6 REPORT FOR DON FOWLER DATE Apr 19, 2004 DEPTH 9885 PRESENT OPERATION= DRILLING TIME 03:00 YESTERDAY 8244 24 Hour Footage 1641 CASING INFORMATION DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8386 34.83 216.51 7307.47 SURVEY DATA 9143 33.71 211.71 7931.88 9775 30.44 213.26 8469.69 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 6.125 HC HCM406 7102577 3 x 12 5760 4125 33.93 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 336.8 @ 8295 8.6 @ 9416 153.4 201.0 ftIhr SURFACE TORQUE 11138 @ 9038 0 @ 8340 6567.9 8360.7 amps WEIGHT ON BIT 19 @ 9136 1 @ 9035 7.2 10.0 Klbs ROTARY RPM 93 @ 9199 0 @ 9079 67.6 79.9 RPM PUMP PRESSURE 3700 @ 9775 1584 @ 9137 3132.9 3262.8 psi DRILLING MUD REPORT DEPTH: 9569 MW 9.15 VIS 84 PV 27 YP 11 FL 4.4 Gels 8/18/20 CL- FC 0 SOL 10.7 SO 0.05 OIL 74.5 MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 1145 @ 9287 29 @ 9620 92.9 TRIP GAS= CUTTING GAS @ @ WIPER GAS= CHROMATOGRAPHY(ppm) SURVEY= METHANE(C-1) 233711 @ 9287 5893 @ 9620 18913.2 CONNECTION GAS HIGH= ETHANE(C-2) 187 @ 9287 11 @ 9620 43.0 AVG= PROPANE(C-3) 33 @ 9287 0 @ 9620 8.6 CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 50/77 PENTANE(C-5) @ @ HYDROCARBON SHOWS MANY VERY MINOR TO MINOR GAS SHOWS IN REPORT INTERVAL INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION Atleast 20 very minor to All sandstone zones with more than 80U of Extended background of 45 units Nearly all sand zones are clay minor gas shows in gas. Most have a large volume of matrix and before and after each zone; dominant and volcanic ash matrix sandstones porosity appears poor. high gas range 76-125 units. Max gas supported with poor visible 418 units porosity. LITHOLOGY SANDSTONE, TUFFACEOUS CLAYSTONE, VOLCANIC ASH, COAUCARBONACEOUS SHALE PRESENT LITHOLOGY 9822 = SANDSTONE 50%, COAL 30%, VOLCANIC ASH 20% DAILY ACTIVITY SUMMARY Drill (rotating and sliding) from 8244' to 9885'. · · Epoch Personel On Board= 4 Daily Cost $2325 Report by: Craig Silva · UNOCAL AFE # 162171 DAIL Y WELLSITE REPORT (J EPOCH HAPPY VALLEY #6 REPORT FOR DON FOWLER DATE Apr 20, 2004 DEPTH 10773 PRESENT OPERATION= DRILLING TIME 03:00 YESTERDAY 9885 24 Hour Footage 888 CASING INFORMATION 7" @ 5753' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9901 28.84 215.04 8579.20 SURVEY DATA 10280 23.08 217.30 8918.14 10658 14.41 225.50 9277.35 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 6.125 HC HCM406 7102577 3 x 12 5760 5013 51.11 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 271.8 @ 9825 7.6 @ 10450 99.5 139.0 ftIhr SURFACE TORQUE 10155 @ 10621 4926 @ 10042 8355.1 9736.3 amps WEIGHT ON BIT 14 @ 10368 0 @ 10415 7.2 9.5 Klbs ROTARY RPM 89 @ 10550 47 @ 10407 81.5 81.7 RPM PUMP PRESSURE 3905 @ 10330 1841 @ 10403 3257.1 3376.0 psi DRILLING MUD REPORT DEPTH: 10585 MW 9.25 VIS 78 PV 29 YP 11 FL 4.8 Gels 10/18/20 CL- FC 0 SOL 11.5 SD 0.10 OIL 75.0 MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 616 @ 10290 35 @ 10556 94.4 TRIP GAS= CUTTING GAS @ @ WIPER GAS= CHROMATOGRAPHY(ppm) SURVEY= METHANE(C-1 ) 137333 @ 10291 7090 @ 10556 19083.0 CONNECTION GAS HIGH= 28 ETHANE(C-2) 340 @ 10292 37 @ 9864 84.9 A VG= 23 PROPANE(C-3) 47 @ 10292 4 @ 9864 13.3 CURRENT 15 BUTANE(C-4) 8 @ 10402 0 @ 0.2 CURRENT BACKGROUND/AVG 40/67 PENTANE(C-5) @ @ HYDROCARBON MARGINAL GAS SHOWS IN REPORT INTERVAL SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION General interval = Massive very ashy sandstone Extended background of 50 units. All sandstone is clay and matrix supported, and 9885'-10185' sections. Gas rarely exceeds 80 Dominant high gas range is 70-85 grades to very sandy tuffaceous claystone. Very units. units. Max gas 92 units. poor to poor porosity due to clay fill. LITHOLOGY SANDSTONE, TUFFACEOUS CLAYSTONE, VOLCANIC ASH, COAUCARBONACEOUS SHALE PRESENT LITHOLOGY 10705 = TUFFACEOUS CLAYSTONE 50%, SANDSTONE 40%, VOLCANIC ASH 10% DAILY ACTIVITY SUMMARY Drill (rotating and sliding) from 9885' to 10773'. · Epoch Personel On Board= 4 Daily Cost $2325 · Report by: Craig Silva · UNOCAL AFE # 162171 DAIL Y WELLSITE REPORT g EPOCH HAPPY VALLEY #6 REPORT FOR DON FOWLER DATE Apr 21, 2004 DEPTH 11336 PRESENT OPERATlON= DRILLING TIME 03:00 YESTERDAY 10773 24 Hour Footage 563 CASING INFORMATION 7" @ 5753' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 10784 12.47 229.94 9399.89 SURVEY DATA 11037 9.15 249.16 9648.47 11289 8.54 275.63 9897.54 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 6.125 HC HCM406 7102577 3 x 12 5760 5576 71.65 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 240.9 @ 10707 5.7 @ 11234 42.9 21.9 ft/hr SURFACE TORQUE 20337 @ 11270 5838 @ 11211 9255.6 8532.6 amps WEIGHT ON BIT 16 @ 10726 0 @ 11025 7.2 8.0 Klbs ROTARY RPM 87 @ 11188 35 @ 11022 81.6 75.9 RPM PUMP PRESSURE 3742 @ 10771 1681 @ 11022 3156.3 3158.6 psi DRILLING MUD REPORT DEPTH: 11250 MW 9.35 VIS 78 PV 34 YP 12 FL 4.6 Gels CL- FC 0 SOL 10.3 SO 0.10 OIL 75.0 MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 228 @ 10899 33 @ 11135.00 69.1 TRIP GAS= CUTTING GAS @ @ WIPER GAS= CHROMA TOGRAPHY(ppm) SURVEY= METHANE(C-1) 45922 @ 10989 6525 @ 11233 14055.6 CONNECTION GAS HIGH= 25 ETHANE(C-2) 309 @ 10984 47 @ 11203 114.3 A VG= 7 PROPANE(C-3) 45 @ 10984 7 @ 10888 18.4 CURRENT 8 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 35/55 PENTANE(C-5) @ @ HYDROCARBON FOUR VERY MINOR GAS SHOWS SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 10860-10880,10905- All massive sandstone sections; 1 st Extended background for all zones All four sandstone sections are clay/ash 10940, 10950-10965, and 4th sections are coarse and is 35 units; Maximum gases for matrix supported, often grade to very sandy 11260-11300 conglomeratic in part. each zones are 1st:133U, tuffaceous claystone. Very poor to poor 2nd:72U, 3rd:81 U, 4th:62U porosity due to abundant clay fill. LITHOLOGY TUFFACEOUS CLAYSTONE, SANDSTONE/SAND, COAUCARBONACEOUS SHALE, VOLCANIC ASH PRESENT LITHOLOGY 11315 = CARBONACEOUS SHALE 40%, COAL 30%, SANDSTONE 20%, TUFFACEOUS CLAYSTONE 10% DAILY ACTIVITY SUMMARY Drill (rotating) from 10773' to 11336'. · · Epoch Personel On Board= 4 Daily Cost $2325 Report by: Craig Silva · UNOCAL AFE # 162171 DAIL Y WELLSITE REPORT g EPOCH HAPPY VALLEY #6 REPORT FOR DON FOWLER DATE Apr 22,2004 DEPTH 11798 PRESENT OPERATION= CIRCULATING AND CONDITIONING FOR TRIP OUT TIME 03:00 YESTERDAY 11336 24 Hour Footage 462 CASING INFORMATION 7" @ 5753' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 11416 9.10 282.05 10023.04 SURVEY DATA 11749 10.12 304.37 10351.48 11798 (Projected) 10399.72 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 6.125 HC HCM406 7102577 3 x 12 5760 11798 6038 90.58 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 215.8 @ 11497 6.7 @ 11783 35.7 36.2 ft/hr SURFACE TORQUE 9753 @ 11342 4959 @ 11716 8439.8 8147.0 amps WEIGHT ON BIT 14 @ 11409 1 @ 11725 8.3 8.0 Klbs ROTARY RPM 88 @ 11648 39 @ 11464 75.6 61.4 RPM PUMP PRESSURE 3658 @ 11505 2205 @ 11725 3229.8 3241.0 psi DRILLING MUD REPORT DEPTH: 11680 MW 9.4 VIS 77 PV 28 YP 10 FL 4.6 Gels 10/21/23 CL- FC 0 SOL 11.4 SD 0.10 OIL 75.0 MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 284 @ 11531 31 @ 11381 71.9 TRIP GAS= CUTTING GAS @ @ WIPER GAS= CHROMATOGRAPHY(ppm) SURVEY= METHANE(C-1) 60535 @ 11470 6203 @ 11381 15090.5 CONNECTION GAS HIGH= 35 ETHANE(C-2) 393 @ 11537 62 @ 11667 138.4 AVG= 18.3 PROPANE(C-3) 73 @ 11530 10 @ 11355 23.8 CURRENT 35 BUTANE(C-4) 14 @ 11793 0 @ 0.3 CURRENT BACKGROUND/AVG 50/72 PENTANE(C-5) @ @ HYDROCARBON SHOWS NONE (Note gases in the sand zones ranged from 35 to 78 units, but no signficant high gas for more than 5') INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY TUFFACEOUS CLAYSTONE, SANDSTONE, COAUCARBONACEOUS SHALE, VOLCANIC ASH PRESENT LITHOLOGY 11798 = CARBONACEOUS SHALE/CLAYSTONE 70%, COAL 30% DAILY ACTIVITY SUMMARY Drill (rotating) from 11336' to 11798' (Total Depth). Circulate and condition hole. · Epoch Personel On Board= 4 Daily Cost $2325 Report by: Craig Silva · · UNOCAL AFE # 162171 DAIL Y WELLSITE REPORT g EPOCH HAPPY VALLEY #6 REPORT FOR DON FOWLER DATE Apr 23, 2004 DEPTH 11798 PRESENT OPERA TION= WIRELlNE LOGGING TIME 03:00 YESTERDAY 11798 24 Hour Footage 0 CASING INFORMATION 7" @ 5763' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 6.125 HC HCM406 7102577 3x 16 5760 11798 6038 90.58 1-4-WT- T-X-1-CT-TD Final TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ ftlhr SURFACE TORQUE @ @ amps WEIGHT ON BIT @ @ Klbs ROTARY RPM @ @ RPM PUMP PRESSURE @ @ psi DRILLING MUD REPORT DEPTH: 11798 MW 9.45 VIS 84 PV 29 YP 11 FL 4.8 Gels 10/22/25 CL- FC 0 SOL 11.3 SD 0.10 OIL 74.0 MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY HIGH LOW AVERAGE (units) DITCH GAS 586 @ Bottoms up after wiper 4@ Circ while 60 (While reaming after Wiper TRIP GAS= trip POOH Trip) CUTTING GAS @ @ WIPER GAS= 586 CHROMATOGRAPHY(ppm) SURVEY= METHANE(C-1) @ @ CONNECTION GAS HIGH= ETHANE(C-2) @ @ AVG= PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY N/A PRESENT LITHOLOGY N/A Circulate and condition mud. (CBU four times). Do Wiper Trip to 8800'. Run in to bottom at 11798'. CBU. Receive 586 units of Wiper DAILY Gas. Pump 14 barrel10.0ppg nutplug flag. (Returns at 5800 strokes/371 bbls indicate only slight washout). Pump dry job. POOH to ACTIVITY 8045'. Hole is tight. Work pipe. Attempt to make up Topdrive to string failed when Topdrive would not rotate. Work tight hole. SUMMARY Troubleshoot Topdrive and attempt to create torque. POOH from 8045' to 5720'. Monitor well, POOH from 5720' to 801 '. Monitor well. Pull out and handle BHA. Lay down bit, motor, and MWD tools. Rig up Reeves Wireline Service. Run wireline Quad-Combo logging assembly. · Epoch Personel On Board= 2 Daily Cost $2325 · Report by: Craig Silva · UNOCAL AFE # 162171 DAIL Y WELLSITE REPORT ~ EPOCH HAPPY VALLEY #6 REPORT FOR MARTY MONNIN DATE Apr 24,2004 DEPTH 11798 PRESENT OPERATION= RUNNING IN HOLE WITH 3.5" LINER STRING TIME 03:00 YESTERDAY 11798 24 Hour Footage 0 CASING INFORMATION 7" @ 5763 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ ft/hr SURFACE TORQUE @ @ amps WEIGHT ON BIT @ @ Klbs ROTARY RPM @ @ RPM PUMP PRESSURE @ @ psi DRILLING MUD REPORT DEPTH: 11798 MW 9.45 VIS 84 PV 29 YP 12 FL 4.8 Gels 10/22/24 CL- FC 0 SOL 12.4 SD 0.10 OIL 74.0 MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY HIGH LOW AVERAGE (units) DITCH GAS 32 @ Displaced by O@ During initial run in with 3.5" 25 (last 10 tubing TRIP GAS= tubing liner joints) CUTTING GAS @ O@ WIPER GAS= CHROMATOGRAPHY(ppm) SURVEY= METHANE(C-1) @ @ CONNECTION GAS HIGH= ETHANE(C-2) @ @ AVG= PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT 4 / BACKGROUND/AVG 26 PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY N/A PRESENT LITHOLOGY N/A DAILY Finish running wireline Quad-Combo log. Rig down Reeves Wireline Service. Lay down 4" HWDP and jars. Vacuum out oil base ACTIVITY mud. Clear and clean rig floor. Rig up to run 3.5" tubing. Change elevators. Rig down rig tongs. Hold PJSM on tubing running SUMMARY procedures. Pick up, make up and then lay back down the cementing head. Pick up tubing shoe. Check float. Run in hole with 3.5" tubing to 6242'. Make up tubing to 5" x 7" ZXP Packer assembly. Run tubing string in hole on 5" drill pipe. · Epoch Personel On Board= 2 Daily Cost $2065 Report by: Craig Siva ·