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HomeMy WebLinkAbout204-068 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. e¿ Q IJ - 0 to ß Well History File Identifier Organizing (done) D Two-sided 1111111111111111111 D Rescan Needed 111111111111111I11I RES CAN ~olor Items: D Greyscale Items: DIGITAL DATA OVERSIZED (Scannable) D Maps: D Other Items Scannable by a Large Scanner D Diskettes, No. D Other, NolType: D Poor Quality Originals: OVERSIZED (Non-Scannable) D Other: D Logs of various kinds: NOTES: D Other:: Project Proofing 111111111111/111111 ~p BY: ~ Date cr, ;1öf Db Date:Cj làD lob ~ x 30 = &() Date c¡ IJO /0 fp /5/ BY: ~ /5/ mp Scanning Preparation + 1 (P = TOTAL PAGES 7 (p (Count does not include cover sheet) fA AJO /5/ V V~~ BY: ~. Maria ) Production Scanning 1111/111I111/11111I Stage 1 Page Count from Scanned File: ry 7 (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: V YES l~ Maria) Date: 1/ ~o I Db If NO in stage 1, page(s) discrepancies were found: YES NO /5/ Vt1 f NO BY: Stage 1 BY: Maria Date: /5/ 11111111I11I1111111 Scanning is complete at this point unless rescanning is required. ReScanned 111111111111111111I BY: Maria Date: /5/ Comments about this file: Quality Checked 11111111111I111111I 10/6/2005 Well History File Cover Page.doc • • ~ - _ Y~ F :ia..W` ~_ v .~ 11 ~ • 1 03/01/2008 D4 NOT PLACE ANY NEW MATERIAL UNDER THISPAGE F:\LaserFiche\CvrPgs_Inserts\Microfilm Marker.doc . . VERIFICA TION OF APPLICATION FOR SPACING EXCEPTION COOK INLET, ALASKA ADL-384380 C-061590 C-061588 Happy Valley #7 well I, KEVIN A. TABLER, Manager, Land and Government Affairs, Union Oil Company of California, do hereby verify the following: I am acquainted with the application submitted for the drilling of the Happy Valley #7 well in the Deep Creek Unit. I have reviewed the application submitted for the exception to 20 AAC 25.055 (a)(2) and all facts therein are true. I have reviewed the plat attached to said application, and it correctly portrays pertinent and required data. DATED at Anchorage, Alaska this 16th day of April 2004. ~ "Jr!J.L- In A. Tabler Mgr., Land & Govt. Affairs STATE OF ALASKA ) ) ss ) THIRD JUDICIAL DISTRICT SUBSCRIBED TO AND SWORN before me this 16th day of April, 2004. ~\\\\\UUUliIlJ/~ ~~~"~:"~l4~~ ~<:>....,;ø-'o" ~"~ ~ "";)... ~oJC¡;, '.~;¿ ;;::¡¡ .~. ,.r.... :=: i NOTARY ~ ëæ S; ~ PUBLIC: S ~Jf ......: )f~ ~ fJI~··.l),ó . .........~ ..' ~ ~ ~... -f;;·..~l.~,..~~·~··s~ ~ ~ ê OF ~\.~..~ rJ/¡"IIIIIIt\\\\\\t' ~tÂ~ NénÃRY PUBLIC IN AND FOR THE STATE OF ALASKA My Commission expires: :J --/i'.. ðG · Unocal corporatio. P.O. Box 196247 Anchorage, AK 99501 Telephone (907) 263-7660 UNOCAL. RECEIVED JUN 1 42004 0i1.:5t Am:'hnr~!1I' Monday, June 14,2004 "'11'; (' .. ,-,ommIS$!CiIl Alaska Oil and Gas Conservation Commission 333 West th Avenue Anchorage, Alaska 99501 Attn: Commission Chair John Norman Re: New Application for Permit to Drill (Form 10-401) Happy Valley #7 Dear Commissioner Norman, Please cancel the existing Permit to Drill (Form 10-401) for Happy Valley #7, API # 50- 231-20020, Permit # 204-068, dated April 2th, 2004. The well will be re-permitted as Happy Valley #7 with a new surface location. Attached for your approval is an application for permit to drill (Form 10-401) for the Happy Valley #7 Well. The surface location has changed on the existing pad, and the directional profile has changed slightly. The bottom hole location is within the 500' radius of the previously permitted well. The casing program and TVD setting depths remain the same. Unocal respectfully requests a waiver of the requirement for a diverter on the 16" surface hole as allowed under AOGCC Regulation 20 MC 25.035 (h) (2). Please refer to attached supporting documentation. The anticipated spud date is approximately June 16th. If you have any questions please contact myself at 263-7637. Sinc.er7]eIY. '~//./.' /. ~- A/.. ?--. A Steven Lambe Advising Drilling Engineer SSLls Enclosure nQ\G\t\'Þ\l.. \ $_ ,,_: L, _, ' . f? 1\ ¡ ¡ í,~\ I :~~d ' , , , - c ! L} \ U Uu . AI/ASIiA OIL AND GAS CONSERVATION COMMISSION Phil Krueger Drilling Manager Union Oil of California (Unocal) P.O. Box 196247 Anchorage, Alaska 99519 FRANKH. MURKOWSKI, GOVERNOR 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Happy Valley #7 Union Oil of California (Unocal) Permit No: 204-068 Surface Location: 1312' FSL, 1170' FEL, SEC. 22, T2S, R13W, S.M. Bottomhole Location: 1415' FSL, 150' FEL, SEe. 15, T2S, R13W, S.M. Dear Mr. Krueger: Enclosed is the approved application for permit to drill the above referenced exploration well. This permit to drill does not exempt you fi'om obtaining additional permits or approvals required by law fi'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. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafi'ost or fi'om where samples are first caught and 10' sample intervals through target zones. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's North Slope petroleum field inspector at -3607 (pager). m' J Chair BY ORDER Q1 THE COMMISSION DATED thislJ. day of April, 2004 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. " . Unocal Alaska . Union Oil Company of Cali 909 West 9th Avenue, P.O. . 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 Fax (907) 263-7698 UNOCAL8 RECEIVED APR 1 9 2004 Kevin A. Tabler, Manager Land/Government Affairs Alaska Oli &1.. Anr:/w; ·'e ..;¡;. ,~Ion April 16, 2004 Mr. Bob Crandall Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 APPLICATION FOR SPACING EXCEPTION Happy Valley #7 well Unocal Lease C-061588, C-061590 ADL # 384380 Dear Mr. Crandall: Union Oil Company of California (Unocal) hereby submits this Application for Spacing Exception to drill the referenced "Happy Valley #7" well in the Deep Creek Unit. Our anticipated spud date is late April, early May, 2004. In accordance with 20 AAC 25.005 (a), a Permit to Drill and associated filing fees are filed herewith. ' The Happy Valley #7 well is situated in governmental Section 15, Township 2S - Range 13W S.M. requiring a spacing exception in accordance with 20 AAC 25.055 (a)(2), and if the results of the Happy Valley #7 well are successful, may be within 1,500' of a property line with a different landowner. This regulation provides in pertinent part, "a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line." This well location is structurally high on the formation and is a crestal withdrawal based on seismic, dip meter and subsurface data available to Unocal. Additionally, the correlative rights of all affected owners, landowners and operators will be protected by exception approval. At the date of this mailing, in accordance with 20 AAC 25.055 (d)(l), notice of our intent to drill has been sent by certified mail to all owners, landowners, and operators of all . . outlying properties within 3,000 feet of the Happy Valley #7 well. A copy of this application (landowner notice) along with a certified mailing receipt has been attached to this application. Additionally, the owner and operator (Unocal) and the landowner (Cook Inlet Region, Inc.) are within 3000' oflands owned by DNR. Pursuant to 20 AAC 25.055 (d)(2), enclosed is a plat, identified as Exhibit "A", which shows the location of the well for which the exception is sought and all adjoining properties. Also enclosed, Exhibit "A-I" identifies the owners, landowners and operators associated with each tract. Pursuant to 20 AAC 25.055 (d)(3), an affidavit is enclosed stating the undersigned is acquainted with the facts and verifying that all facts are true. It is requested that the Commission approve an exception to the statewide spacing regulation for the drilling of the proposed Happy Valley #7 well. If you require additional information regarding the Happy Valley #7 drill site, please contact Mr. Jerry Bowen, drilling engineer at 263-7640, or you may contact the undersigned at 907-263-7600. )d~ Enclosures cc: CIRI DNR . 8 9 17 27 C-061590 ! ~ .J ~ ~ I f, t' . ~ ~ f ~ , 3 ~ if ~ i . . ---.-'11.( ~ ____ ""··"";"."'·^·'''''~'·U·' ., 34 '1', - .111" 3 . C-061587 11 12 23 ! I ~ ~ . J ,. .' .~".. d%M.' .~. 24 26 25 UNOCALfj DEEP CREEK UNIT HAPPY VALLEY 7 EXHIBIT A N A 0.5 0.25 0 0.5 I I Miles Alaska State Plane Zone 4, NAD27 .. LEASE ADL-384380 (Section. 22 portion) T2S-R13W C-061590 (Sections 22, 23) T2S-R13W C-061588 (Sections 14,15) T2S-R13W . EXHIBIT "A-I" LANDOWNER OWNER DNR Unocal Division of Oil and Gas 550 West 7th Avenue, Suite 800 Anchorage, Alaska 99501-3560 Attn: Carol Lee Cook Inlet Region, Inc. 2525 C Street, Suite 500 Anchorage, Ak 99509 Attn: Kirk McGee Cook Inlet Region, Inc. 2525 C Street, Suite 500 Anchorage, Ak 99509 Attn: Kirk McGee Unocal Unocal . OPERATOR Unoca1 Unocal Unocal Cheo/tYpe of mail or service: ~Certified 0 Recorded Delivery (Intematlonal) o COD 0 f3e1 istered o Delivery Confirmation [;Y'Retum Receipt for Merchandise o Express Mail 0 Signature Confirmation o Insured umaL- Article Number Addressee Name, Street, and PO Address o')J..c. OÒCY)- Si(~d..bl;a.. ~~1:- - \(.\\K. "^,_(.....<'i 000-) SW~ ~ \'}\ 't_ - Cø.-v-ol L £~ . \:)~J,.~ U.s. Postal - ., . ~ - -- - I CERTIFIED MAIL RECEIPT (Domestic Mall Only; No Insurance Coverage Provided) , ru r=t CJ ru A~¡,~I~JI p~ L pomage $ 0.60 r=t -.ši,åí,ï;Apt:.Ñõ,::..m..m----.n.....m..m....---......n..---n.--.nn__..··...·.. n.. CJ or PO Box No. ~ ''(:f¡tÿ: Stãié, 'Z{;:;:;'4' ...-. -.--.. -- ..__n.. ---. __'n"n ----.--.. '.m .m____ .n'n .'n' -- n'n ...D cO 0:0 Ul Certified Fee 2.30 1.75 Ul CJ CJ CJ Return Receipt Fee (Endorsement Required) Restricted Delivery Fee (Endorsement Required) ~ Total Postage & Fees $ 4.65 IT! CJ Sent To 'ØI -.._ :.._. _ .._.....____._. __GtlJM__I.J..IIß.ØIItlhl.", . ~ Affix Stamp Here (If Issued as a certificate of mailing, or for additional cop/esof this bill) Postmark and Date of ReceiDt Handling Charge Postage Fee , Ul CJ CJ · ru AMi.~ 1~1 ~ Postage $ 0.60 Actual Value if Registered Insured Value Due Sender if COD DC Fee U.s. ... . ... - ., . CERTIFIED MAIL RECEIPT (Domestic Mail Only; No Insurance Coverage Provided) ...D · 0:0 0:0 Ul Certified Fee ?JO 4.65 1.75 r=t -·Š¡rëë¡:Apr·Ñò~::··--··..····--n.-n...m.n--.n....m..-.--...m·..m.n.·.·n__.n_.. I:J or PO Box No. ~ nCiiÿ:siåié:ZIP+4·----·m---..n..m..-..----n.---.nn--..n-----...n...-.·.m,'.m.. c _0 .". r:: IfI -Q-E 'Sail! ~ :.;þi \~ -~ r.: l>. 0 .... () -'1 ~ 4) o io. -t)-.f: >- (U ... ;: -~!J ~ ~- :: WI) -~ Q SC Fee SH Fee RD Fee RR Fee -Ul I:J I:J · I:J Return Receipt Fee (Endorsement Required) Restricted Delivery Fee (Endorsement Required) )<, . :0.. '"" ~ ~ ~ ;¡¡ .... - ;. ~ " iC ~ œ .... " of"" '."~' d.:3 ;¿¡ ... ... iC .... ¡:¡. I~ ~ .... ;:;: fI. ð~ *' íï: - iii {tJ dJ ~J_ œ U 4i Q.. t.II . maximum indemnity payable for the reconstruction of nonnegotiabls do.cuments under Express Man document rsconstructlon insurance is $500 per piece subject to additional Umilations for multiple plecss lost or damagss In a single catastrophic occurrence. The maximum indemnity payable on Express Msil merchandise insurance Is $500, but optional Express Mail Service merchandise Insurance is available for up to $5,000 to some, but not all countries. The maximum indemnity payable is $25,000 for registered mail. See Domestic Mail Manual R900, S913, and S921 for Umitatlons of coverage on Insured and COD mail. See /n/erna/ional Mail Manualfor limitations of coverage on International mail. Special handilngcharges apply only to Standard Mail (A) and Standard Mail (B) parcels. Complete by Typewriter, Ink, or Ball Point Pen I anu l'IUmWI UI f"'"I~\iVb Received at Post Office rV~UI'aO\VI" al ('''CU.,g VI I~gf""'~ GJII JfUrV-¡ CJ · ru IT! I:J Total Postage & Fees $ Sent To · Unoca' corporatio. P.O. Box 196247 Anchorage, AK 99501 Telephone (907) 263-7660 UNOCALe Phil Krueger Drilling Manager Monday, April 19,2004 Alaska Oil and Gas Conservation Commission 333 West th Avenue Anchorage, Alaska 99501 Attn: Commission Chair John Norman Re: Application for Permit to Drill (Form 10-401) Happy Valley #7 Dear Commissioner Norman, Attached for your approval is an application for permit to drill (Form 10-401) for the Happy Valley #7 Well. Unocal respectfully requests a waiver of the requirement for a diverter on the 16" surface /' hole as allowed under AOGCC Regulation 20 MC 25.035 (h) (2). Please refer to attached supporting documentation. The anticipated spud date is approximately May 1 st. If you have any questions please contact myself at 263-7628 or Mr. Jerry Bowen at 263-7640. Sincerely, r;/~ ---- Phil Krueger Drilling Manager LWB/s Enclosure RECEIVED APR 1 9 2004 Alaska Oil & Gas Cons. Commission Anchorage ORIGINAL W 41\- t 11..:!I , 2..b "£1- . STATE OF ALASKA . ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 AAC 25.005 20. Attachments: Filing fee: X Property Plat: X BOP Sketch: X Drilling fluid 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: Signed: l ß/· . tv.) ~hil Krueger Title: Drilling Manager Date: 04/16/2004 7 I' Commission Use Only Permit Number I API number -> I Approval date i' \ :l '1~ ) I See cover letter :<011- ~ç' .s-C' - 23/- ,-.()ö.2.0 11'10'1 for other requirements Conditions of approval sampl~uired: [] Yes MNo Mud lo~ r:quired: ] Ye ~ No . Hydrogen sulfide measur [ ] Yes,);;No ¡;[¡rèctional survey required ;qYes [] No T~ st ßO PE to 4-S'oo t'S <. RequireR wor . ess re or BOPE [] ~;.. [] 3M; [] ~M; [] 10M; [] 15M t.'· £.V,~..hl ~J. J Other: r.¿ .. .D~S" (~1 2-) J L;v~t.tr (e1i(í~ W\-~:r¥,,~,otvC£CÚA.M. " s ~of~ve . f.1' p, S". 0 c; 0 ( k a,..lrø'Ý VIA-t!.. IM-t ,.,0 N.. L It)' order of ~ / J 1 Approv bv \. -' Commissioner the Commission Date: )'é r lOT "MOl 9 I HdV "'f1~{~ -'01R~-185 ORIGINAL '""""- Redrill: Deepen: \1 b. Type of well Service: 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 1312'FSL, 1170'FEL, Sec. 22, T2S, R13VV, S.M. At top of productive interval 350'FSL,280'FVVL,Sec. 15, T2S, R13VV, S.M. At total depth 1415' FSL, 150'FEL, Sec. 15, T2S, R13VV, S.M. 12. Distance to nearest 13. Distance to nearest well property line 5524 feet 16. To be completed for deviated wells Kickoff depth: 1500 feet 37° Maximum hole angle: 18. Casing program size Casing 18 5/8" 13 3/8" 121/4" 95/8" 8 1/2" 3 1/2" 3293 Hole N/A Specifications Grade Coupling K-55 (welded) K-55 BTC L-80 BTC - mod L-80 IBTC-mod 16" VVeight 96.79 68 40 9.2 19. To be completed for Redrill, Re-entry, and Deepen Operations. Present well condition summary Exploratory: X Developement Gas: 5. Datum Elevation (DF or KB) 738.5' KB to MSL feet 6. Property Designation C-061588 7. Unit or property Name Deep Creek Unit 8. Well number Happy Valley #7 9. Approximate spud date 05/01/04 14. Number of acres in property Development Oil: Multiple Zone: X Stratigraphic Test: Single Zone: 10. Field and Pool Wildcat in Beluga & Tyonek Gas Sands 11. Type Bond (see 20 AAC 25.025) Number U 62-9269 Amount $200,000 15. Proposed depth (MO and TVO) feet 2780.01 12,330' /10,590' 17. Anticipated pressuÏ'"{see 20 AAC 25.035 (e)(2» Maximum surface 3717 psig At total depth (TVO) Setting Depth feet 4734 psig Top Bottom Quantity of cement Length MD TVD MD TVD (include stage data) 40-80' 0' 0' 40-80' 40-80' N/A - driven to refusal / 1037' 0' 0' 1032' 1032' 107.7 bbls (388 sx) / 4350' 0' 0' 4350' 4016' 228 bbls (725 sx) 13,800' 0' 0' 12,330' 10,590' 565 bbls (1283 sx)* / 'Contingent upon log analysis. RECEIVED APR 1 9 2004 Alaska Oil & Gas Cons. Commission Anchorage Diverter Sketch: Seabed report: NIA Drilling program: X 20 AAC 25.050 requirements: . . List of Attachments ~ 1. Permit to Drill (form 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. Proposed Well Trajectory 10. Kick Tolerance Output 11. Leak Off Test Procedure 12. Cement Program (D/S - includes volume calculations) 13. Cellar & BOP Stack Diagram 14. Choke Manifold Diagram 15. Cuttings Disposal Description 16. Offset Well Usable Quality Water Salinity Calculations & Graph 17. Mud Program (Baroid) . . WAIVER REQUEST 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 16" surface hole to a depth of +/- 1032' without a diverter. AOGCC regulation 20 AAC 25.035 (h) (2) / stipulates: (h) ¡¡Upon 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. " Based on our experience drilling 12 %" surface holes in Happy Valley #1, #2, #3, #4, #5 & #6 it has been proven conclusively that no shallow gas /~ hazards exist beneath this pad to a depth of at least 1032' BRT. The 16" surface hole for Happy Valley #7 will be drilled from the same pad as Happy Valley Wells #1 through #6 (within +/-225'), and to the approximate same depth as the previous Happy Valley surface 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 surface hole TD of 1032', to eliminate the risk of a shallow water flow. . . WAIVER #2: Unocal requests permission to drill the 16" surface hole to +/-1032' without surveying until after the 9 5/8" casing is cemented. AOGCC regulation 20 /' AAC 25.050 (h) stipulates: (h) "Upon 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. II Due to plans to drill the 16" surface hole vertically to 1032', 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 13 3/8" casing, before drilling the 12 %" hole, to eliminate the risk of a well-to-well collision and ensure accuracy of the final BHL. AS STAKED HAPPY VALLEY NO. 7 GRID N: 2,189,852.69 GRID E: 228,097.43 LATITUDE: 59°59'09.545"N LONGITUDE: 151°29'05.208"W ELEV. 716' . ,"""\\, . ...... <:.. OF Ai. 't ~ ~v."'''··''..:1 " -~~.... ~"f1:' : *~:49l1i A\ "'!*~ ""................................... , fill '" '" fill ,................................... "" , ~ ··.M. SCOTT McLANE.:' 1/1I I~ ~ '. .. ~ - ~~ :II ". 4928-S ..' DC - ~ ~ .... .... c,oJ"_ I. "'- .. .. _.0 _ . 'Q A:.... .. .. .. \J.""-- , , . 'fUf"tss I ONþ..\. ,'" ,\\""", PROPOSED HAPPY VALLEY NO.7 WELL SURFACE LOCATION/· ~~ HAPPY VALLEY NO.1 PAD r-. ~ :J: ...J en lL. N r;} ~ . -- OILWELL RD. SCALE 1 inch = 300 ft. ~o 450 I 600 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 1170' FEL HV#7 ~ N SECTION 22 TOWNSHIP 2 SOUTH RANGE 13 WEST SEWARD MERIDIAN ALASKA Grid SEC 22 SEC 23 SEC 27 SEC 26 APPLICANT: UNDCAL 909 W. 9th A~nue . Anchorage, AI( 99519-7685 HAPPY VALLEY NO.7 WELL SURFACE LOCATION NINILCHIK, AK P.O. 8cx 468 SCLCCTNA, AK 99669 ~ ConsuLiing "'roup ~ Testing Project: 043021 Revisions: Dwg: 043021 I Date: 4/12/04 FIGURE: 1 8 9 17 3 24 26 25 DEEP CREEK UNIT HAPPY VALLEY 7 EXHIBIT A N Alaska State Plane Zone 4, NAD27 Genera! Procedure.xls Page 1 of 1 4/19/2004 HAPPY VALLEY #7 PLAN DAYS VERSUS DEPTH o 10 15 Time (Days) Valley #4 Happy Valley #3 Happy Valley #1 Valley #2 I I 'If ~I I # 'OJ _ \ V _, _I_I' I! .""'-,_ Valley #5 Happy Valley #7 AFE I II ._1__.......... 'f v~_ . 1 11-0'111 Location: X==228,097.43 E, Y==2,189,852.69 N Lat: 59" 59' 09.545" N, Long: 151029' 05.208" W 1312' FSL, 1170' FEL, Sec22, T2S, R13W, S.M. RKB == 22.5' AGL GL == 716' AMSL RKB elevation == 738.5' AMSL 18 5/8" 96.79 DDf butt: welded. drilled/driven to +/·30-50' BGl 16" hole (drilled w/out diveter, AOGCC waiver requested AO 4/16/04, confirm approval) 8.8 ppg KCL- WBM spud mud Cement to surface req'd wI 350' 15.8 ppg G tail & 682' 12.8 ppg extended G lead Planned TD 12,330' MD /10,590' VD Static BHT == 36.8°F + (0.0136 J( TVD) Job Template #1 REVISED: 04/16/04 DRAWN BY: JFB . . UNDCAL8 Maximum Anticipated Surface Pressure Calculation Happy Valley Well #7 Kenai Peninsula, Alaska Assumptions: / 1. Based on offset drilling & well test data, the pore pressure gradient is predicted to be a 0.447 psilft gradient from surface to planned total depth at 10,590' VD BRT. Unocal has drilled two wells on this structure to 10,590' VD or deeper (HV #3 & #4) from this pad, and has reviewed data from three other wells drilled to at least this same depth within a +/-3 mile radius (NNA #1, HV #31-22 & Deep Creek Unit #1). 2. The MAS.P. during drilling operations will be governed by the 9 5/8" shoe frac gradient, and is calculated based on a full column of gas between the 9 5/8" shoe and the surface. The shoes for HV #7 will be at the same depth as the shoes in HV wells #1, #3, #4 & #5 thus the nearby LOT data from approximately 4016' VD is useful for relatively accurate kick tolerance & MASP calculations. 3. The M.A.S.P. during production operations will be the estimated SIBHP minus the gas hydrostatic pressure between TD & the surface. The 9 5/8" 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 10,590' VD gas completion (Le. before reservoir pressure declines). M.A.S.P. During Production Life: Max. pore pressure at T.D. = 10,590' VD x 0.447 = 4734 psi M.A.S.P. (tbg leak at surface) = 4734 psi - (0.096 psilft * 10,590 ft) = = 3717 /" psi MAS.P. While Drilling 8 1/2" hole at 12,330' MD: Max. Est. Frac pressure at 9 5/8" shoe = 4016 ft. x 0.904 psi/ft* = = 3630 psi M.A.S.P. during drilling = 3630 psi - (.08 psilft x 4016 ft.) = = 3309 psi * highest observed FG at +1-4016' VD in Happy Valley area to date M.A.S.P. While Drilling 12 1/4" hole at 4,350' MD: Max. Est. F rac pressure at 13 3/8" shoe = 1032 ft. x 1.15 psi/ft** = = 1187 psi MAS.P. during drilling = 1187 psi -(.08psi/ftx4016ft.)= = 866 psi ** highest observed FG at +/-1032' VD in Happy Valley area to date Calculation & Casing Design Factors . " + UNOCALfj) Happy Valley Well #7 Kenai Peninsula, Alaska WELL: Happy Valley #7 FIELD: South Kenai Gas DATE: 19-Apr-04 DESIGN BY: Jerry Bowen Sect 1 16" hole MUD WT. 9.1 PPG MASP= 763 psi-- Sect 2 121/4" hole MUD WT. 9.1 PPG MASP= 3,838 psi Sect 3 8 1/2" hole MUD WT. 9.3 PPG MASP= 3,838 psi TENSION MINIMUM COLLAPSE COLLAPSE ."....- -- / WEIGHT TOP OF STRENGTH ,/ PRESS @ RESIST. MINIMUM DESCRIPTION W/OBF SECTION TENSION WORST CASE BOTTOM wlo TENSION WORST CASE MASP YIELD WORST CASE SECTION CASING BOTTOM TOP LENGTH WT. GRADE THREAD LBS LBS 1000 LBS SF TENSION PSI- PSI SF COLL. PSI" PSI SF BURST 1 133/8" 1,032 0 1032 68 K-55 BTC 70,176 70,176 1300 18.52 454 1,950 4.29 866 3,450 3.98 TVD 1,032 0 2 95/8" 4,350 0 4350 40 L-80 BTC-mod 174,000 174,000 979 5.63 1,767 3,090 1.75 3,717 5,750 1.55 TVD 4,016 0 3 31/2" 12,330 0 12330 9.2 L-80 IBT -mod 113,436 113,436 207 1.82 4,660 10,530 2.26 3,717 10,160 2.73 TVD 10,590 0 - Collapse pressure is calculated; Normal Pressure Fluid Gradient for external stress (.44 psi/lt) and the casing evacuated for the internal stress (0 psi/It) -- -- See attached sheet for calculation of MASP Note: All wellhead components are rated to 5000 psi working pressure, with the exception of the X-mas tree and tree adapter spool, which are rated to 6500 psi working pressure. . . UNOCAL N.. ....... -- INTW~ Kenai Peninsula. Alaska South Kenai Gas Field Happy Valley Location: Field: Installation: WELL PROFILE DA T A Slot: HV #7 Well: HV #7 Wellbore: HV #7 Point MD Ine A1J 1VD North East deg/100ft v. Sect Tie on 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 End of Hold 1500.00 0.00 0.00 1500.00 0.00 0.00 0.00 0.00 End of BuildITum 3380.50 37.61 355.38 3248.33 593.42 -47.93 2.00 574.45 End of Hold 4329.35 37.61 355.38 4000.00 1170.61 -94.56 0.00 1133.19 End oITum 5286.40 37.61 27.00 4765.29 1727.09 15.54 2.00 1700.42 End of Hold 6213.85 37.61 'Z7.00 5500.00 2231.40 272.50 0.00 2243.43 End oITum 1??oo.86 37.61 8.06 8510.16 4412.55 961.47 0.30 4514.13 End of DroplTum 10292.02 34.70 6.60 8745.23 4582.88 983.46 1.04 4685.60 End of DroplTum 10583.18 31.79 5.15 8988.73 4741.61 999.88 1.04 4844.65 End of DroplTum 10874.35 28.88 3.69 9240.01 4888.18 1011.29 1.03 4990.81 End of DroplTum 11165.51 25.96 2.24 9498.44 5022.05 1018.31 1.03 5123.69 End of DroplTum 11456.67 23.05 0.78 9763.34 5142.77 1021.57 1.02 5242.94 End of DroplTum 11747.83 20.14 359.32 10034.04 5249.91 1021.76 1.02 5348.28 End of DroplTum 12039.00 17.23 357.87 10309.83 5343.15 1019.57 1.01 5439.52 ToO. & End of DroplTum 12330.16 14.32 356.41 10590.00 5422.18 1015.71 1.01 5516.50 Scale 1 em = 200 II -800 <1= 0 0 -800 "<t " E () 0 Q) ro () U) 800 1600 2400 - 3200 - CI) .! - 4000 .c - Q. CI) C 4800 C'O U :e 5600 CI) > CI) 6400 ~ L. ~ . V 7200 8000 8800 9600 10400 11200 ill UNOCAL8 ./ Created by: PIamer Date plotted: 16-Apr-2004 Plot reference is HV #7. Refwellpath is HV #7 Vers#3. Coordinates are in feet reference HV #7. True Vertical Depths are reference Rig Datum. Measured Depths are reference Rig Datum. Rig Datum: Kuukpik #5 Rig Datum to mean sea level: 738.50 II. Plot North is aligned to TRUE North. East (feet) -> -400 1200 1600 -0 400 800 6400 6000 5600 TO - 7" Casing Pt. HV#5 TD Tgt Rvsd 23Mar04 .. .J .l13 5/8" Casing Pt. . KOP 6.00 12.00 OLS: 2.00 deg/100ft 24.00 32.00 EOC .. Begin OropfTum T arge· HV#5 Tgt Rvsd 22-Mar-04,4:30pm -.. 5200 4800 4400 4000 3600 ^ 3200 . Z 0 ;:¡ 2800 ::T - ¡- CD - 2400 - 2000 1600 1200 800 400 C/) (") Q) ã) 0 (") 3 " -400 N 0 0 ;:I! 9 5/8" Casing Pt. OLS: 0.30 deg/100ft 37.24 37.23 37.26 37.32 37.41 37.53 HV#5 Tgt Rvsd 22-Mar-04,4:30pm Target Begin OropfTum 33.62 29.62 22.62 19.62 16.62 HV#5 TD Tgt Rvsd 23Mar04 TO - 7" Casing Pt. -800 -0 800 1600 2400 3200 4000 4800 5600 6400 Scale 1 em = 40011 Vertical Section (feet)-> Azimuth 11.15 with reference 0.00 N, 0.00 E from HV #7 Begin Walk to left , - r 9 5/8" Casing Pt. EOC 13 5/8" Casing Pt. , - r KOP 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 . . S. Kenai Gas project Happy Valley #7 9-5/8" SHOE DESIGN SUMMARY & SKETCH UNOCALe (/ - 13·3/8" shoe 1,010 ft BML.... (1,032 ft TVD) \ / \ I \ I \ 12-1/4" Hole / \ I \ / \ I \ I \ / - mdb/01decOO METHOD 2: .. y " .6 WD = 0 ft with 0.447 PSI/FT Gradient RT - MSL = 22.5 ft DESIGN DOWN: MW = 9.1 PPG Pform = 9.1 PPG EMW KT = 10 BBLS at 0 PPG FG = 0.6 PSI/FT Gas Gradient = 0.02 PSI/FT Drill Pipe = 4.5 INCH .. The deepest 12-1/4 in hole that can be drilled = 4,228 ft BML or 4,250 ft TVD 13-3/8" shoe .... The shallowest 9-5/8" shoe depth = 4,003 ft BML or 4,026 ft TVD ~ 8·1/2" Hole TD = 10,568 ft BML or 10,590 ft TVD - METHOD 1: .... \ / \ I \ / \ / \ I \ I \ I \ I \ I \ / · DESIGN UP: MW = 9.3 PPG Pform = 9.8 PPG EMW KT = 10 BBLS at 0.5 PPG FG = 0.603 PSI/FT Gas Gradient = 0.05 PSI/FT Drill Pipe = 4.5 INCH UNOCALi> . LEAK OFF TEST ("LOT") PROCEDURE /' 1. Clean out the rathole below the shoe, and drill 20' of new hole. Circulate and condition mud. 3. RIU and test cement lines. 2. Pull the drill string into the shoe. RIU to monitor both drill pipe and drill pipe x annulus pressures. 4. Close the pipe rams and pump down the drillpipe at a slow rate (1/4 BPM). 5. Measure the volume pumped and plot annulus pressure-vs-cumulative volume pumped. 6. Upon initial leak off (Point B), continue to pump 1 bbl at injection pressure (Point C) taking pressure readings every % bbl pumped. 7. Stop pumping and record shut-in pressure 10 seconds after initial shut-in (Point D). Note: The point "D" shown in the attached graph (10-second shut-in) is the value used to calculate LOT. The LOT (expressed in equivilent mud weight "EMW") is calculated as follows: LOT = Mud weight in hole, ppg + 10-Second Shut-In Pressure. psi (0.052) X (shoe depth TVD, ft) C "---~ SURFACE PRESS. 10 sec. (psi) VOLUME PUMPED (DDLS) ~ . SHUT ·IN· TIME (MIN) Point "An will have some variance until the system begins to pressure up. Point "B" is the fracture iniatation pressure. Point "C" is known the injection pressure. Point "D" is fracture closure pressure measured I 0 seconds after shutting down the pumps. NOTES: . . ScbllmbllPOIIP * CemCADE well cementing recommendation for 133/8" Surface Casing Operator Country State UNOCAL USA : AK Well Field Happy Valley #7 Happy Valley Prepared for : Jerry Bowen Location Ninilchik Proposal No. : #1 Service Point Kenai Date Prepared : 04-16-2004 Business Phone (907) 776-8156 FAX No. (907) 776-8158 Prepared by Phone E-Mail Address Chinedu F. Akwukwaegbu (907) 273-1739 CAkwukwaegbu@slb.com ~GN ( <:J<V~' t \'~, ~lIATE Disclaimer Notice: This information is presented in good faith, but no warranty is given by and Schlumberger assumes no liability for advice or recommendations made concerning results to be obtained from the use of any product or service. The results given are estimates based on calculations produced by a computer model including various assumptions on the well, reservoir and treatment The results depend on input data provided by the Operator and estimates as to unknown data and can be no more accurate than the model, the assumptions and such input data. The information presented is Schlumberger's best estimate of the actual results that may be achieved and should be used for comparison purposes rather than absolute values. The quality of input data. and hence results, may be improved through the use of certain tests and procedures which Schlumberger can assist in selecting. The Operator has superior knowledge of the well, the reservoir, the field and conditions affecting them. If the Operator is aware of any conditions whereby a neighboring well or wells might be affected by the treatment proposed herein it is the Operator's responsibility to notify the owner or owners of the well or wells accordingly. Prices quoted are estimates only and are good for 30 days from the date of issue. Actual charges may vary depending upon time. equipment, and material ultimately required to perform these services. Freedom from infringement of patents of Schlumberger or others is not to be inferred. . Mark of Schlumberger . Client Well String District Country loadcase UNOCAl Happy Valley #7 Surface Casing Kenai USA Surface Casing Section 1: well description Configuration Stage Rig Type Mud Line Total MD BHST Bit Size : Casing : Single : Land : 0.0 ft : 1032.0 ft : 80 degF : 16 in MD (ft) 50.0 Previous String OD Weight (in) (lb/ft) 18 5/8 96.5 ID (in) 17.655 Landing Collar MD : 952.0 ft Casing/liner Shoe MD : 1032.0 ft MD (ft) 1032.0 Casing/Liner ID Grade (in) 12.415 K-55 OD (in) 133/8 Joint (ft) 40.0 Weight (lb/ft) 68.0 Mean OH Diameter : 16.000 in Mean Annular Excess : 20.0 % Mean OH Equivalent Diameter: 16.475 in Total OH Volume : 258.9 bbl (including excess) The Well is considered VERTICAL MD (ft) 2500.0 Formation Data Pore Name (Ib/gal) 8.33 Frac. (Ib/gal) 15.00 MD (ft) Geothermal Temperature Profile TVD Temperature Gradient (ft) (degF) (degF/100ft) 0.0 80 0.0 1032.0 80 0.0 2~0~ 00 ~O 0.0 1032.0 2500.0 ; 04-16-2004; LaadCase Surtace Casing; Version wcs-oem44C51 . Collapse (psi) 1950 Lithology Sandstone Sil..rger Burst (psi) 3450 Thread BTC Page 2 . Client Well String District Country loadcase UNOCAl Happy Valley #7 Surface Casing Kenai USA Surface Casing Section 2: fluid description Fluid No: 1 Rhea. Model At temp. : BINGHAM : 80 degF Fluid No: 3 Rhea. Model At temp. : BINGHAM : 80 degF Fluid No: 4 Rhea. Model At temp. : BINGHAM : 81 degF DESIGN BLEND Name : G Dry Density : 199.77 Ib/ft3 Sack Weight : 94 Ib BASE FLUID Type : Fresh water Additives Code 0079 S002 0046 Cone. 1.500 %BWOC 1.000 %BWOC 0.200 %BWOC Thickening Time Compressive Strength Mud DESIGN Density Pv Ty Job volume MUDPUSH " DESIGN Density Pv Ty Gel Strength . SilllllPlep : 8.80 Ib/gal : 12.000 cP : 12.00 Ibf/100ft2 : 142.5 bbl : 9.50 Ib/gal : 16.000 cP : 16.00 Ibf/100ft2 : (lbf/100ft2) Job volume : 20.0 bbl Lead Slurry DESIGN SLURRY Mix Fluid Yield Porosity Density Schedule ( ) Schedule () Density Pv Ty Gel Strength ~. 1 Hj6-'gal/sk . .9 ._.3/sk . . % : 8.32 Ib/gal Function EXTENDER Accelerator ANTI FOAM 100 Be 571 psi ; 04-16-2004; loadCasa Surface Casing; Varsion wcs-cem441_51 : 12.80 Ib/gal / : 11 .936 cP : 16.99 Ibf/100ft2 : (lbf/100ft2) Job volume :~. b I Quantity : 80 sk Solid Fractio - : 24.9 % Base Fluid : 11.064 gal/sk at at 03:05 hr:mn 37:00 hr:mn Page 3 Section 3: fluid sequence Original fluid Mud pv : 12.000 cp 142.5 bbl 274.2 bbl O.Oft . Client Well String Distri ct Country Loadcase UNDCAL Happy Valley #7 Surface Casing Kenai USA Surface Casing Fluid No: 5 Rhea. Model At temp. : BINGHAM : 80 degF DESIGN BLEND Name : G Dry Density : 199.77 Iblft3 Sack Weight : 94 Ib BASE FLUID Type : Fresh water Code D065 S002 D046 Cone. 0.300 %BWOC 1.500 %BWOC 0.200 %BWOC Thickening Time Compressive Strength Displacement Volume Total Volume TOC . lillllrger Tail Slurry DESIGN Density Pv Ty Gel Strength : 15.80 Ib/gal : 25.749 cp : 24.73 Ibf/100ft2 : (lbf/100ft2) SLURRY Mix Fluid Yield Porosity ~. 5 al/sk 1,.11 3/sk . .2% Job volume :~~ b I Quantity : 08 sk Solid Fractio : 41.8 % Density : 8.32 Ib/gal Base Fluid : 5.098 gallsk Additives Function DISPERSANT Accelerator ANTI FOAM Schedule () Schedule () 100 Be 2573 psi at at 03:04 hr:mn 24:00 hr:mn 8.80 Ib/gal Ty: 12.00 Ibf/100ft2 Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (lb/gal) Fresh Water 5.0 0.0 8.32 viscosity:5.000 cP MUDPUSH II 20.0 0.0 9.50 pv:16.000 cp Ty:16.00 Ibf/100ft2 Lead Slurry 63.3 682.0 0.0 12.80 pv:11.936 cp Ty:16.99Ibf/100ft2 Tail Slurry 43.4 350.0 682.0 15.80 pv:25.749 cp Ty:24.73Ibf/100ft2 Mud 142.5 0.0 8.80 pv:12.000 cp Ty:12.00 Ibf/100ft2 Static Security Checks: Frac Pore Collapse Burst CsgPump out 6 psi 12 psi 1679 psi 3450 psi 13 ton at 50.0 ft at 50.0 ft at 952.0 ft at 0.0 ft Page 4 ; 04-16-2004; loadCase Surface Casing; Version wcs-œm441_51 . . Client Well String District Country Loadcase UNOCAL Happy Valley #7 Surface Casing Kenai USA Surface Casing Silllllrger Section 4: pumping schedule Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbl/min) (bbl) (min) (bbl). Temp. (degF) Fresh Water 5.0 5.0 1.0 5.0 80 Fluid pack lines Pause 0.0 0.0 5.0 0.0 80 3-Pressure Test Lines MUDPUSH II 5.0 20.0 4.0 20.0 80 7 -Start Pumping Spacer Pause 0.0 0.0 5.0 0.0 80 4-Drop Bottom Plug Lead Slurry 5.0 63.3 12.7 63.3 80 13-Start Mixing Lead Slurry Tail Slurry 5.0 43.4 8.7 43.4 80 16-Start Mixing Tail Slurry Pause 0.0 0.0 5.0 0.0 80 18-Drop Top Plug Mud 5.0 140.0 28.0 140.0 80 19-5tart Displacement Mud 1.0 2.5 2.5 142.5 80 21-Bump Top Plug Total 01:11 274.2 bbl hr:mn Dynamic Security Checks: Frac 5 psi Pore 0 psi Collapse 1679 psi Burst 3183 psi at 50.0 ft at 63.5 ft at 952.0 ft at 0.0 ft BHCT Simulated BHCT CT at TOC 80 degF 80 degF 79 degF Temperature Results I Simulated Max HCT Max HCT Depth Max HCT Time 80 degF 1032.0 ft 01 :11 :52 hr:mn:sc WELLHEAD PRESSURE o eo N o "<T N o ~ o ~ (0- 'û) -- .e, £L ~~ 0_ eo ~- o o , 10 20 30 40 Time (min) 50 60 70 80 Page 5 ; 04-16-2004; LoadCase Surface Casing; Version wcs-cem44C51 . . Client UNOCAL lillllralr Well Happy Valley #7 String Surface Casing D istri ct Kenai Country USA Loadcase Surface Casing ECD D e p th = 1032ft CD .- -Frac -Pore - Hydrostatic ~_' __ nY,H1fYlÎc -.t_ .- 1è~ .Q> :§. Q) 5 1'1_ v¡ v¡ Q) ê: ¿ .-- ~ .- 0 .- (1)- ro I , , 0 10 20 30 40 50 60 70 80 Time (min) FLOWRATE COMPARISON 1'1 Fluids at 1 032 ft .- 0_ .- ro- ê ] :is .0 'Qi'CD ¡;¡ a:: ¡;; o ü: -.t o o 10 20 30 40 Time (min) 50 60 70 80 Page 6 ; 04-16-2004; LoadCase Surtace Casing; Version wcs-cem44C51 . . SC~llDIbIPUIP * CemCADE well cementing recommendation for 95/8" Intermediate Casing Operator Country State UNOCAL USA : AK Well Field Happy Valley #7 Happy Valley Prepared for : Jerry Bowen Location Ninilchik Proposal No. : #1 Service Point Kenai Date Prepared : 04-16-2004 Business Phone (907) 776-8156 FAX No. (907) 776-8158 Prepared by Phone E-Mail Address Chinedu F. Akwukwaegbu (907) 273-1739 CAkwukwaegbu@slb.com ~GN (,,«.,-c:,' t \ (\~. ~lIATE Disclaimer Notice: This information is presented in good faith, but no warranty is given by and Schlumberger assumes no liability for advice or recommendations made concerning results to be obtained from the use of any product or service. The results given are estimates based on calculations produced by a computer model including various assumptions on the well, reservoir and treatment. The results depend on input data provided by the Operator and estimates as to unknown data and can be no more accurate than the model, the assumptions and such input data. The information presented is Schlumberger's best estimate of the actual results that may be achieved and should be used for comparison purposes rather than absolute values. The quality of input data, and hence results, may be improved through the use of certain tests and procedures which Schlumberger can assist in selecting. The Operator has superior knowledge of the well. the reservoir. the field and conditions affecting them. If the Operator is aware of any conditions whereby a neighboring well or wells might be affected by the treatment proposed herein it is the Operator's responsibility to notify the owner or owners of the well or wells accordingly. Prices quoted are estimates only and are good for 30 days from the date of issue. Actual charges may vary depending upon time. equipment. and material ultimately required to perform these services. Freedom from infringement of patents of Schlumberger or others is not to be inferred. * Mark of Schlumberger . Client Well String Distri ct Country Loadcase UNOCAL Happy Valley #7 Intermediate Casing Kenai USA Intermediate Casing (a) Section 1: well description Configuration Stage Rig Type Mud Line Total MD BHST Bit Size : Casing : Single : Land : 0.0 ft : 4350.0 ft : 92 degF : 12 1/4 in MD (ft) 1032.0 Previous String OD Weight (in) (Ib/ft) 13 3/8 68.0 ID (in) 12.415 Landing Collar MD : 4270.0 ft Casing/liner Shoe MD : 4350.0 ft MD (ft) 4350.0 Casing/Liner ID Grade (in) 8.835 L-80 OD (in) 9 5/8 Joint (ft) 40.0 Weight (Ib/ft) 40.0 Mean OH Diameter : 12.250 in Mean Annular Excess : 20.0 % Mean OH Equivalent Diameter: 12.710 in Total OH Volume : 520.7 bbl (including excess) Max. Deviation Angle : 38 deg Max. DLS : 6.861 deg/100ft MD (ft) 4350.0 Formation Data Pore Name (psi/ft) 0.433 Frac. (psi/ft) 0.700 MD (ft) Geothermal Temperature Profile TVD Temperature Gradient (ft) (degF) (degF/100ft) 0.0 80 0.0 1032.0 80 0.0 4016.4 92 0.3 4056.3 93 0.3 0.0 1032.0 4350.0 4400.0 ; 04·16·2004; loadCase Intermediate Casing (a); Version w<:s-cem441_51 . Collapse (psi) 3090 Lithology Sandstone Sil..rler Burst (psi) 5750 Thread Brc Page 2 Client Well String D istri ct Country Loadcase . UNOCAL Happy Valley #7 Intermediate Casing Kenai USA Intermediate Casing lal . Slilltllrgør Section 2: fluid description Mud DESIGN Fluid No: 1 Density : 9.20 Ib/gal Rhea. Model : BINGHAM Pv : 12.000 cP At temp. : 80 degF Ty : 12.00 Ibf/100ft2 Gel Strength : (lbf/100ft2) MUD Mud Type :WBM Job volume : 323.8 bbl Water Type : Fresh Fluid No: 3 Rhea. Model At temp. Fluid No: 4 Rhea. Model At temp. : BINGHAM : 80 degF : BINGHAM : 80 degF DESIGN BLEND Name : G Dry Density : 199.77 Ib/ft3 Sack Weight : 94 Ib BASE FLUID Type : Fresh water Code D046 D079 D167 S002 Additives Cone. 0.200 %BWOC 2.000 %BWOC 0.800 %BWOC 0.750 %BWOC Thickening Time Compressive Strength MUDPUSH " DESIGN Density Pv Ty Gel Strength : 10.50 Ib/gal : 16.000 cP : 16.00 Ibf/100ft2 : (lbf/100ft2) Job volume : 20.0 bbl Lead Slurry DESIGN Density Pv Ty Gel Strength : 12.80 Ib/gal : 31.504 cP : 33.84 Ibf/100ft2 : (Ibf/100ft2) SLURRY __ Mix Fluid ~. . .06 gal/sk Yield . 1.9 ft3/sk Porosity . . . % Job vOlume~. .6 bl Quantity : 534 sk Solid Fraction f : 25.3 % Density : 8.32 Ib/gal Base Fluid : 11.067 gal/sk Function ANTI FOAM EXTENDER FLUID LOSS Accelerator Schedule 9.4-,1 Schedule ( ) 03:30 hr:mn 24:00 hr:mn 70 Be 922 psi at at Page 3 ; 04-16-2004; LoadCase Intermediate Casing (aJ; Version wcs-cem441_51 Section 3: fluid sequence Original fluid Mud pv : 12.000 cp 323.8 bbl 576.9 bbl 1032.0 ft . Client Well String District Country Loadcase UNDCAL Happy Valley #7 Intermediate Casing Kenai USA Intermediate Casing (al Fluid No: 5 Rhea. Model At temp. : BINGHAM : 80 degF DESIGN BLEND Name : G Dry Density : 199.77 Ib/ft3 Sack Weight : 94 Ib BASE FLUID Type : Fresh water Additives Code D167 D065 D046 Cone. 0.400 %BWOC 0.300 %BWOC 0.200 %BWOC Thickening Time Compressive Strength Displacement Volume Total Volume TOC Name Volume (bbl) 5.0 20.0 188.6 39.5 323.8 Fresh Water MUDPUSH II Lead Slurry Tail Slurry Mud . Sillllrlep Tail Slurry DESIGN Density Pv Ty Gel Strength : 15.80 Ib/gal : 72.013 cp : 10.82 Ibf/100ft2 : (lbf/100ft2) SLURRY Mix Fluid Yield Porosity Job volume ~. . I Quantity : 91 sk Solid Fractio : 41.4 % Density : 8.32 Ib/gal Base Fluid : 5.091 gal/sk Function FLUID LOSS DISPERSANT ANTI FOAM Schedule 9.18- 4 Schedule () 100 Be at 04:38 hr:mn 2351 psi at 18:30 hr:mn 9.20 Ib/gal Ty: 12.00 Ibf/100ft2 Ann. Len (ft) 83.7 334.8 2818.0 500.0 Fluid Sequence Top Density (ft) (Ib/gal) 613.5 8.32 697.2 10.50 1032.0 12.80 3850.0 15.80 0.0 9.20 Ty:16.00 Ibf/100ft2 T y:33.84 Ibf/100ft2 Ty:10.82Ibf/100ft2 Ty:12.00 Ibf/100ft2 Rheology viscosity:5.000 cp pv:16.000 cP pv:31.504 cp pv:72.013 cp pv:12.000 cp Static Security Checks: Frac Pore Collapse Burst Csg.Pump out 210 psi 65 psi 2318 psi 5746 psi 47 ton at 1032.0 ft at 1032.0 ft at 4270.0 ft at 697.2 ft Page 4 ; 04-16-2004; loadCase Intermediate Casing (a) ; Version wcs-cem441_51 . . Client Well String District Country Loadcase UNDCAL Happy Valley #7 Intermediate Casing Kenai USA Intermediate Casing (a) Sillllllrler Section 4: pumping schedule Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbl/min) (bbl) (min) (bbl). Temp. (degF) Fresh Water 5.0 5.0 1.0 5.0 80 Pause 0.0 0.0 5.0 0.0 80 MUDPUSH II 5.0 20.0 4.0 20.0 80 Pause 0.0 0.0 5.0 0.0 80 Lead Slurry 5.0 188.6 37.7 188.6 80 Tail Slurry 5.0 39.5 7.9 39.5 80 Pause 0.0 0.0 5.0 0.0 80 Mud 5.0 315.0 63.0 315.0 80 Mud 1.0 8.8 8.8 323.8 80 Total 02:17 576.9 bbl hr:mn Dynamic Security Checks: Frac 111 psi Pore 44 psi Collapse 2318 psi Burst 4970 psi at 4350.0 ft at 1032.0 ft at 4270.0 ft at 0.0 ft BHCT Simulated BHCT CT at TOC 86 degF 80 degF 80 degF Temperature Results I Simulated Max HCT Max HCT Depth Max HCT Time 81 degF 3373.5 ft 00:06:00 hr:mn:sc WELLHEAD PRESSURE o o co o 75 Tim e (m in) 125 150 ëii Sg Q.'<t ~ 8 (") o o ~ o Page 5 ; 04-16-2004; LoadCase Intermediate Casing (a) ; Version wcs·cem441_51 . . Client Well String District Country Loadcase UNOCAL Happy Valley #7 Intermediate Casing Kenai USA Intermediate Casing (a) Silllllrger ECO "L ~ o e p th = 4 3 50ft ..,. or- -Frac -Pore Ilydrostatit:. -- Dynamic (YL ~ ¡¡¡ .Q> g ~ :Y~_ en ~ ~ ct ¿ .ã: 0_ 0>- 00 o 25 50 75 Tim e (m in) 100 125 150 FLOWRATE COMPARISON 0> Fluids at 4350 ft "2 ·ê ]SLO S- a> õí C::..,. ~ ü: o 25 50 75 Tim e (m in) 100 125 , 150 Page 6 ; 04·16-2004; loadCase Intermediate Casing 1'1; Version wcs·cem441_51 . . ScblulJlbepger * Cern CAD E well cementing recommendation for 3.5" Production Casing Operator Country State : UNOCAL : USA : AK Well Field Happy Valley #7 Happy Valley Prepared for : Jerry Bowen Location Ninilchik Proposal No. : #1 Service Point Kenai Date Prepared : 04-16-2004 Business Phone (9071776-8156 FAX No. (907) 776-8158 Prepared by Phone E-Mail Address Chinedu F. Akwukwaegbu (907) 273-1739 CAkwukwaegbu@slb.com ~GN" ( <:J1y"':) ~ .,~ ~ , \~"4 '~lJATE . Disclaimer Notice; This Information is presented in good faith, but no warranty is given by and Schlumberger assumes no liability tor advice or recommendations made conceming results to be obtained from the use of allY product or service. The results given are estimates based on calculations produced by a computer model including various assumptions on the well. reservoir and treatment The results depend on input data provided by the Operator and estimates as to unknown data and can be no more accurate than the model, the assumptions and such input data. The information presented is Schlumberger's best estimate of the actual results that may be achieved and should be used for comparison purposes rather than absolute values. The quality of input data, and hence results, may he improved through the use of cel1ain tests and procedures which 5chlumberger can assist in selecting. The Operator has superior knowledge of the well, the reservoir, the field and conditions affecting them. If the Operator is awme of any conditions whereby a neighboring well or wells might be affected by the treatment proposed herein it IS the Operator's responsibility to notify the owner or owners of the IVeil or wells accordlllgly. Prices quoted are estimates only and are good for 30 days from the date of issue. Actual charges may vary depending upon time, equipment. and material ultimately required to perform these services. Fmedoll1 from infringement of patents of 5c"'umberger 01" others is not to be infened. · Mark of Schlumberger Client Well String District Country loadcase . UNOCAl Happy Valley #7 3.5 Kenai USA Production Casing (8) Section 1: well description Configuration Stage Rig Type Mud Line Total MD BHST Bit Size MO (ft) 4350.0 : Casing : Single : land : 0.0 ft : 12330.0 ft : 181 degF : 8 1/2 in Previous String 00 Weight (in) (lblft) 9 518 40.0 10 (in) 8.835 landing Collar MD : 12250.0 ft Casinglliner Shoe MD : 12330.0 ft MD (ft) 12330.0 00 (in) 3 1/2 Casing/liner ID Grade (in) 2.992 L-80 Joint (ft) 40.0 Weight (Ib/ft) 9.2 Mean OH Diameter : 8.500 in Mean Annular Excess : 20.0 % Mean OH Equivalent Diameter: 9.179 in Total OH Volume : 653.1 bbl (including excess) Max. Deviation Angle : 38 deg Max. DlS : 2.005 deg/100ft MO (ft) 7500.0 12340.0 MD (ft) 0.0 1032.0 4400.0 12330.0 12340.0 Frac. (psilft) 0.725 0.710 Formation Data Pore Name (psi/ft) 0.433 0.433 Geothermal Temperature Profile TVD Temperature Gradient (ft) (degF) (degF/100ft) 0.0 80 0.0 1032.0 80 0.0 4056.1 93 O~ 10589.7 181 1.0 10599.4 181 1.0 . Collapse (psi) 10530 Lithology Sandstone Sandstone HVj7 _RP./_#1.cfo.v; 04·16~2004; loa~Case Production CasiJ1tJ (a); V€Jf5ior. wcs-cC?m441_51 Scilllllrler Su rst (psi) 10160 Thread MTC Page 2 . Clíent Well String District Country loadcase UNOCAl Happy Valley #7 3.5 Kenai USA Production Casing (a) Section 2: fluid description cw 100 DESIGN Fluid No: 2 Rhea. Model At temp. : NEWTONIAN : 80 degF Density Viscosity Job volume MUDPUSH II DESIGN Fluid No: 3 Rhea. Model At temp. : SINGHAM : 80 degF Density Pv Ty Gel Strength Job volume LiteCRETE DESIGN Fluid No: 4 Rhea. Model At temp. : BINGHAM : 80 degF Density Pv Ty Gel Strength DESIGN BLEND Name : 12# LiteCRET Dry Density : 112.13 Ib!ft3 Sack Weight: 1511b BASE FLUID Type : Fresh water SLURRY Mix Fluid Yield Porosity ~.1.5.···· al/sk . .4. t3/sk : . % Density : 8.32 Ib/gal Additives Code Cone. Function D047 0.161 gaVsk blend ANTI FOAM D600G 2.415 gal/sk blend GASBLOK D065 0.750 %BWOC DISPERSANT D800 0.200 %BWOC RETARDER / C359 0.025 %BWOC Viscosifier Thickening Time Schedule 9.20- 100 Bc 2 Compressive Strength Schedule () 2863 psi #4 Base Oil DESIGN Fluid No: 5 Rhea. Model At temp. . ScillllllPI8P : 8.26 Ib/gal : 5.000 cP : 20.0 bbl : 10.50 Ib/gal : 16.000 cP : 16.00 Ibf/100ft2 : (lbf/100ft2) : 55.0 bbl : 12.00 Ib/gal : 92.092 cP : 12.39 Ibf/100ft2 : (lbf/100ft2) Job volume: ~6 .2 ~bl Quantity :. 83 8 sk Solid Fraction· . 55.0 % Base Fluid : 5.739 gallsk at 03:51 hr:mn at 44:00 hr:mn : NEWTONIAN : 80 degF Density : 7.40 Ib/gal Viscosity : 4.000 cP Job volume : 106.5 bbl HV_#7 _REV_f.1.cf~v; 04~16·2004; loadCasc Pmduttion Casing (a); Vt)(SiOfi wcs-wm441_51 Page 3 . . Client Well String District Country loadcase UNOCAl Happy Valley #7 3.5 Kenai USA Production Casing (a) ScillllPgØP Displacement Volume Total Volume TOC Section 3: fluid sequence Original fluid Mud pv: 12.000 cP 106.5 bbl 746.8 bbl 4250.0 ft 9.501b/gal Ty: 12.00 Ibf/100ft2 CW 100 MUDPUSH II LiteCRETE #4 Base Oil Volume (bbl) 20.0 55.0 565.2 106.5 Ann. Len (ft) 312.9 860.4 8080.0 Fluid Sequence Top Density (ft) (lb/gal) 3076.8 8.26 3389.6 10.50 4250.0 12.00 0.0 7.40 Rheology Name viscosity:5.000 cP pv:16.000 cP pv:92.092 cP viscosity:4.000 cP Ty:16.00 Ibf/100ft2 Ty:12.39Ibf/100ft2 Static Security Checks: Frac Pore Collapse Burst Csg.Pump out 901 psi 273 psi 7924 psi 10160 psi 34 ton at 4350.0 ft at 4350.0 ft at 12250.0 ft at 0.0 ft Section 4: pumping schedule Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol (nj. Comments (bbl/min) (bbl) (min) (bbl). Temp. (degF) CW 100 5.0 5.0 1.0 5.0 80 Fluid pack Jines Pause 0.0 0.0 5.0 0.0 80 3-Pressure Test Lines CW 100 5.0 15.0 3.0 20.0 80 5-Start Pumping Wash MUDPUSH " 5.0 55.0 11.0 55.0 80 7-Start Pumping Spacer Pause 0.0 0.0 1.0 0.0 80 LiteCRETE 5.0 565.2 113.0 565.2 80 9-Start Cement Slurry Pause 0.0 0.0 5.0 0.0 80 36-Drop Dart #4 Base Oil 5.0 60.0 12.0 60.0 80 19-5tart Displacement #4 Base Oil 3.0 35.0 11.7 95.0 80 Slow down rate #4 Base Oil 1.0 11.5 11.5 1 06.5 80 37-Bump Dart Shut-In 0.0 0.0 20.0 0.0 80 38-Set Packer Total 02:54 746.8 bbl hr:mn Dynamic Security Checks: Frac 865 psi Pore 230 psi Collapse 7912 psi Burst 7994 psi at 4350.0 ft at 4350.0 ft at 12250.0 ft at 0.0 ft 8HCT Simulated 8HCT CT at TOC 141 degF 144 degF 111 degF Temperature Results I Simulated Max HCT Max HCT Depth Max HCT Time 146 degF 11826.7 ft 02:54:14 hr:mn:sc Page 4 HV_#7 _AEVj'1.cfw; 04·16~2004; loadCasc Pmduttiao Casing (a); Version wcs-<em441_51 . . Clíent Well String Distri ct Country Loadcase UNOCAL Happy Valley #7 3.5 Kenai USA Production Casing (a) Silll.rlor WELLHEAD PRESSURE ID N § .... .ð. ~ ~ 100 Tim e (m in) DIFFERENTIAL PRESSURE @ ZXP PACKER DEPTH:;; 4250' N ..... - Collapse eUrit - Pseudo Hydrostatic C>- - Dynamic 50 ft Fluì sat 251 ft ô 8 ..... o ~ Æ: Page 5 HVj·7_RHI_#1.dw; 04-16-2004: lOMCa50 Produc.tioo C'JlSIIlQ (a) ;VcrSIOJi wcs<~m44I_51 . . Client Well String District Country Loadcase UNOCAL Happy Valley #7 3.5 Kenai USA Production Casing (a) Scilmnnrgør ECD r(¡rr. + ~ Hydrostatie ..........-.... Dynamic \ ~ Depth = 12330 ft ;! --Frac ~ ¡¡; 0> ê <I> ~ ~ UJ ~ :ß ct c:: <: « ~~ (1)-..:. o 20 i 40 60 .,. 80 100 120 Tim e (m in) i 140 160 180 . , 200 a) FLOWRATE COMPARISON CD - Fluids at 12330 ft Lt> . . II ~ ~ 'it :? ~ 1 ê. ! OJ <') rn a:: ~ ¡¡: N r 11 .0: q /} :~ ........ .. .... nO__ ____0__ . . . ".. . ~ , . ......................~... . " "....' .' . ...... ····:·.····:·····:·.·.f·:··· . , ...... ¡:/jl. . ... o ,. 100 Tim e (m in) , 160 ~L___;_j_·· 180 U.._ I 200 o Page 6 Hv_n_REV~*Lcf..\I, 04-16-2004. loadCa5C Produwoo Casmg ((I); VcrSIOJì wcs-cem44 _51 . Client Well String District Country loadcase UNOCAl Happy Valley #7 3.5 Kenai USA Production Casing (a) . Scilumlrgør Section 5: centralizer placement Top of centralization :4300.0 ft Bottom Cent. MD :12310.0 ft Casing Shoe :12330.0 ft NB of Cent. Used :47 NB of Floating Cent. :47 Centralizer Placement Bottom MD Nbr. Cent. I Cent. Name Code (ft) Joint 12010.0 39 1/5 NW-PO-3 1/2-4-POT 9 W223 12330.0 8 1/1 NW-PO-3 1/2-4-POT 9 W223 Min. STO (%) @ Depth (ft) 11980.4 12330.0 0.0 60.7 Centralizer Description Cent. Name Code Casing Max. Min. OD Rigid OD OD (in) (in) (in) NW-PO-3 1/2-4-POT W223 3 1/2 8.335 8.335 Yes 9 Centralizer Tests Hole Size Running Restoring (in) Force Force (Ibf) (Ibf) N.A. N.A. N.A. Origin Hannover (1) - Centralizer performance data is based on tests by WEATHERFORD as per the current API 10D specifications Running Force Calculations: Travelling Block Weight Friction Factor Centralizer/Formation Total Drag Force Hook load Down Stroke Hook load Up Stroke o o 0- 1,0 :100 ton :0.3 :10 ton :132 ton :152 ton ft % 0- o o 0- o o 0_ o 1,0 Pipe Standoff Page 7 HV_'7_REVj:1.cfw; 04·16·2004; loadCasc Produc.tiao Casing la) ;Versiofo wcs<em441_51 . Client Well String Oistri ct Country Loadcase UNOCAL Happy Valley #7 3.5 Kenai USA Production Casing (a) Section 6: WELLCLEAN II Simulator fI % 0- o o 0- \0 o· o 0- o o o 0- \0 Cement Coverage Fluids Concentrations Risk Mud on the Wall it Õ 2 it it õ it 2 I :,QoCO 500D. :,QoCO GI)OO 60000 GI)OO 7000 7001} 7000 ,. ,. 110000 .! BOOD 110000 .! 01: 01: >- 91)00 ;; 90000 ;; . 9000 . ; ; , >- 1 0000 10000 10000 '-11(100 11(100 .' 1~OOQ ~ 1 ~OOQ .. .. 'e 'e ;i ;i BOOD 90000 500D ~¡ 60000 7001} 10000 11 ()OO 12000 .. 'e ;i J " " z _ #4 Base Oil II ~~5~51~ II _ CW100 _ High _ Medium _ Low I;;;~W;;;~ None . HV37_RE\Cf1.cfw; 04~16-2004; loadCasc Prodoction Casing (a) ;Vt1r5iof' wcs<em44-'_51 s IPI8P Page 8 22'6" or 270" .. .. Ground Level w/ Drilling spool to be replaced by tubinghead 8. DSA after 9 51S" casing cemented Iwi:. 13 3/8" SOW Bradenhead (starter) wellhead F I4;J 133/6" outlet 18 5/8" non-structural conductor pipe, to be cut above cellar floor after ~ cementing 9 5/8" 2" thick base alate ~ I· 11 9'0" 2' Skid Base (' Mol· ~ """ " 8' or 96" '" 12· Choke 5,000 I Choke IVBnifold Kuukpik Hing 5 . . Happy Valley Cuttings Disposal Description for Permit to Drill / The drilling muds and cuttings from the Happy Valley #7 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 #1 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 #7 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. DeepCreek Salinity Calculations Calculations Method #1 - SP Ü$.è:R~Q;fi*fitffi:;: .:;:;:;:;:;:::;:;:;;::::;: F~;:;:;~;t;::::;:;:;:::::;:;:;::; ;;;::;:;:::::::::::~li::::¡:::;:::;~¡:;:;:;¡ ;1::::);:;:;:;:;:1 ::::;:::¡:::;:¡;)::::::::;:::r~:;.::::::::::::::::::::::;::Q1ät"t::;:;':::;:::;:;:;:::;:;:;: LOG HEADER: 80.00 5.00 15-2S-13W Deep Ck 1 Sterling 123 22 175 270 0.0066 75.86 62.447 4.84 15-2S-13W Deep Ck 1 Sterling 580 18 80 110 0.0066 78.86 62.797 4.67 15-2S-13W Deep Ck 1 Sterling 600 15 70 80 0.0066 78.99 62.812 4.67 15-2S-13W Deep Ck 1 Sterling 825 22 44 42 0.0066 80.46 62.984 4.59 15-2S-13W Deep Ck 1 Sterling 1120 22 28 36 0.0066 82.40 63.21 4.49 15-2S-13W Deep Ck 1 Sterling 1480 30 18 19 0.0066 84.76 63.485 4.37 15-2S-13W Deep Ck 1 Sterling 1700 30 17 15 0.0066 86.20 63.654 4.30 15-2S-13W Deep Ck 1 Sterling 2220 30 12 12 0.0066 89.61 64.052 4.15 15-2S-13W Deep Ck 1 Beluga 2550 52 22 17 0.0066 91.78 64.304 4.06 15-2S-13W Deep Ck 1 Beluga 2810 45 29 19 0.0066 93.48 64.503 3.99 15-2S-13W Deep Ck 1 TD 12953 0.0066 160.00 72.263 2.40 2.97 2.95 2.95 2.95 2.94 2.92 2.92 2.90 2.89 2.88 2.6 1 .456 1.654 1.822 1.453 1.452 1.125 1.125 1.125 0.563 0.703 4000 3000 2800 3800 3900 4600 4600 4300 8000 6500 . Deep Creek Salinity Calculations Method #2 Rwa Use Rmf=0.61 Rm Form. Depth Porosity Geo. F Hdr Rwa Method #2 Location Well Top MD SP Elan Rt Grad t K Rm Rmf Method #2 Salinity ppm Chi LOG HEADER: ' ...;Qt). S.. 15-2S-13W Deep Ck 1 Sterling 123 22 0.32 270 0.0066 75.86 7.7755 62.45 1.12 2.97 34.72 freshwater 15-2S-13W Deep Ck 1 Sterling 580 18 0.32 110 0.0066 78.86 7.7755 62.80 1.12 2.95 14.15 freshwater 15-2S-13W Deep Ck 1 Sterling 600 15 0.3 80 0.0066 78.99 8.7334 62.81 1.05 2.95 9.16 800 15-2S-13W Deep Ck 1 Sterling 825 22 0.28 42 0.0066 80.46 9.8882 62.98 0.98 2.95 4.25 1200 e 15-2S-13W Deep Ck 1 Sterling 1120 22 0.15 36 0.0066 82.40 30.411 63.21 0.44 2.94 1.18 5000 15-2S-13W Deep Ck 1 Sterling 1480 30 0.18 19 0.0066 84.76 21.903 63.49 0.57 2.92 0.87 5800 15-2S-13W Deep Ck 1 Sterling 1700 30 0.2 15 0.0066 86.20 18.119 63.65 0.65 2.92 0.83 6000 15-2S-13W Deep Ck 1 Beluga 2220 30 0.22 12 0.0066 89.61 15.263 64.05 0.74 2.90 0.79 6100 15-2S-13W Deep Ck 1 Beluga 2550 52 0.15 17 0.0066 91.78 30.411 64.30 0.44 2.89 0.56 8000 15-2S-13W Deep Ck 1 Beluga 2810 45 0.13 19 0.0066 93.48 39.346 64.50 0.35 2.88 0.48 9500 TD 12953 0.0066 ·100.01 72.26 2.40 2.6 - - ----------------------------:=J Deep Unit #1 Calculations 10000 9000 8000 7000 6000 5000 4000 - 3000 2000 1000 0 0 500 1000 1500 2000 2500 3000 Depth · e I Halliburton BAROID UNOCAL Mud Program UNOCAL Happy Valley #7 Kenai Peninsula, Alaska Baroid Mud Program Halliburton Baroid Name (Printed) Signature Date Originator Dave Higbie Reviewed by Don Shaw / John Rose Customer Approval Jerry Bowen Version No: Date: 1.0 April16,2004 HV #7 v1.0 04/16//04 . . I Halliburton BAROID UNOCAL Mud Program Happy Valley 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 1,032' MD range. It will be drilled with in a 16" hole size and cemented. The surface casing will be drilled out with the existing mud system. The 12 ~" interval will then be drilled building to 36° to 37° angle by section TD of 4350' MD. 9 5/8" casing will be run and cemented at this depth. The well will then be displaced to an INVERMUL system, the 9 5/8" will be drilled out and a leak off performed. An 8 %" hole will be directionally drilled (max hole angle of 38°) dropping to 14° by TD at 12,330' MD (-10,590' TVD). A 3 %" 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. CaCllevels 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 DrillinQ Obiectives: · Zero fluid related HSE incidents · Achieve well bore stability · Achieve good hole cleaning considering hole angle, geometry and anticipated Rap 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 #7 v1.0 '1 "" 04/16/104 . . I Halliburton BAROID UNOCAL Mud Program Well Specifics: Casing Program HV#3 16" hole (13 3/8" casing) 12 W' hole ( 9 5/8" casing) 8 %" Hole (3 %" liner) MD TVD Foota~e 1032' 1032" 1032' 4350' 4016' 3318' 12,330' 10,590' 7980' Surface Hole Recommendations Mud Type: 6%KCI, EZ Mud Properties: 0-1032' Densitv Viscosity 8.6 - 8.9 60 - 85 Plastic Viscosity 6 - 16 Yield Point 35 - 45 API FL N/C I!.!:! 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 1.5 -2 ppb (as required 35-45 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 - 1,032' 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 35 - 45 or as needed to achieve adequate hole cleaning.. No filtrate control is required prior to reaching 1032' 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 16" 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. Sweep Formulation: 30 barrels mud (500' annular coverage), add ca. 1.0 ppb BARAZAN 0 to achieve a tauO > 25. HV #7 v1.0 3 04/16//04 . . I Halliburton BAROID UNOCAL When penetrating high-clay content sections additions of BDF-263 ester incidence of bit balling and shaker blinding. Mud Program are recommended to reduce the This well is a larger borehole than the other Happy Valley wells to date. Modeling shows that it will be more difficult to clean. Maintain a minimum 35 YP at all times. 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 ECO management. · Optimize solids control equipment to maintain density, sand content, and reduce the waste stream. · Maintain YP between 35 - 45 to optimize hole cleaning and to control ECO. · 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~ 550 600 650 80 rpm 110 120 170 100 rpm 110 120 170 Baroid's recommended flowrate for this interval is 650 gpm to maximize hole cleaning at these penetration rates. RPM's have no effect on hole cleaning in this vertical section. Hole cleaning is made more difficult in this increased hole size. Of interest: a step-change benifit is realized when increasing the flow rate from 600 to 650 gpm. .Intermediate Hole Recommendations Mud Type: 6%KCI, EZ Mud Properties: 1,032 - 1500' 1500 - 4350' Densitv 8.7 -8.9 8.8-9.2 Viscosity 40-53 40-50 Plastic Viscosity 6 - 15 6 - 15 Yield Point 15 - 25 15 - 25 API FL N/C 8-10 R!:1 8.5-9.0 8.5-9.0 System Formulation: Product Water KCI KOH Barazan D Dextrid EZ Mud DP Aldacide G 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 HV #7 v1.0 4 04/16//04 . . I Halliburton BAROID I Baracor 700 Barascav D UNOCAL 11 ppb 0.5 ppb (maintain per dilution rate) Mud Program I Special Mixing Instructions: . Mix in order as listed . Add polymers slowly to minimize fisheyes. Concerns and ContinQencies Intermediate Interval- (1032 - 4350' 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. The rheology will need run towards the high side of the specified range in this large diameter well bore. 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: pumping. 25 bbl of mud with 0.25 ppb of Barolift added. Shear thouroughly prior to 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 slowly 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 HV #7 v1.0 :' 04/16//04 . . I Halliburton BAROID UNOCAL Mud Program I 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. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM- WO WO 100 rpm 100 110 120 rpm 115 140 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 120 to 100. 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' TVD ranges. · Optimize solids control equipment to maintain density and sand content. · Maintain YP between 15-25 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 System Formulation Product Base Oil EZ MUL NT INVERMUL GEL TONE V Lime DURATONE RM63 Water CaCI2 AK-70 BAROID HV #7 v1.0 Concentration 0.696 bbl 4 ppb 4 ppb 4 ppb 5 ppb 4 ppb 0.5 ppb 0.178 bbl 24.6 ppb 4 ppb to a 9.2 ppg 6 04/16//04 . . I Halliburton BAROID UNOCAL Mud Program Mud Type: Invermul System Mud Properties Density Viscosity PV YP ES HTHP FL WPS O/W 4350 -10,000 8.9 - 9.2* 55-80 18 - 29 9-18 1 000- <8 290 to 320K 80/20 1100 10,000- TD 9.2 * 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 Base Oil EZ MUL NT INVERMUL GEL TONE V Lime DURATONE 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 to a 9.2 ppg Concerns and ContinQencies Production Interval (8 %" hole. 3.5" casinQ ): 0 to 12,330' MD 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 ~ 100 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. HV #7 v1.0 7 04/16//04 . . I Halliburton BAROID UNOCAL Mud Program 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. 4-6 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 checks at flowline temp until-6800' then at 120°F to TD. This will give a more accurate reflection as to the rheology the hole is experiencing. 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 DURA TONE HT / AK-70 filtration mechanism « 8 cc/30 min @ 2000 F to 10,000' then <See/3D 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 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 O/w 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: 10 ratio in the lower depths of the well. Suggested Drilling Parameters HV #7 v1.0 8 04/16//04 . . I Halliburton BAROID UNOCAL Mud Program I 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~ 450 500 590 80 rpm 120 140 150 100 rpm 160 175 200 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 ~ 100 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 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. 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. HV #7 v1.0 9 04/16/104 . . I Halliburton BAROID UNOCAL Mud Program 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 base diesel oil - ensure availability. 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. Estimated Fluid Costs : 16" Surface 24,000 12 y,¡" Intermediate 28,000 8 Yz" Production (Oil) 46,000 Total $98,000 **The P-50 estimate assumes 800 bbls of reconditioned oil mud to be used. 37,000 61,000 66,000** $164,000 54,000 89,000 175,000 $318,000 HV#7 v1.0 04/16//04 10 . I Halliburton BAR OlD Losses UNOCAL Lost Circulation Decision Tree f/lnhibited Mud Systems ~ + + + Seepage Partial Severe Total 15·60 bbllhr 5·10 bbllhr Static Static 60·200 bbllhr Static > 200 bbllhr Static + + . . ~ I Treat Active System I I Treat Active System I 160-150 bbl/hr Static I 1150-200 bbl/hr Static I Drill Across Fault with 5 sxlhr Barofibre with 10 sxlhr Barofibre t t t I Drill Across Fault I I Drill Across Fault I Pump Gunk Squeeze + pill to allow POH Yes 100 ppb LCM/Mud Pill: (Volume to be ~ Yes 20 ppb Baroseal F . determined based ~ 20 ppb Baroseal M upon losses 30 ppb Barofibre I Contact Drilling Engineer I + I Drill Ahead I I Drill Ahead 20 ppb Wallnut M or Engineer on call No 10 ppb Wallnut F Contact Drilling II'~ lfM,<II111> I No ~ Engineer or Engineer . on call 5 sxlhr Barofibre 70 ppb LCMlMud Pill: I Contact Drilling Engineer or I ., + 5 ixlhr Sf2carb 50 Engineer "On Call" 20 ppb Baroseal F Pump Gunk POH, PU dumb iron I 20 ppb Baroseal M Squeeze pill BHA 20 ppb Barofibre (Volume to be ~ 10 ppb Wall nut M determined based Yes ~ upon losses) Consider cement I I Drill Ahead I No plug back contingency y 40 ppb LCMlMud Pill: . Yes 10 ppb Baroseal F t Pump Gunk 10 ppb Baroseal M Drill Ahead I Squeeze pill 10 ppb Barofibre No 10 ppb Wallnut M . Contact Drilling ( '\ Engineer or Engineer Notes: on call to determine if additional LCM 1) Drill across fault or loss zone 1.5 - 2.0 times the length of the Yes throw before spotting Gunk Squeeze. ~ treatments are to be 2) PBl sub should be run in BHA to spot pills if 'Partial Loss' cases or made or to proceed to above are anticipated prior to drilling to allow the spotting of lCM I Drill Ahead I 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' Pill PLUGGING THE DRill STRING. \ / HV #7 v1.0 04/16/104 . UNOCAL Mud Program 11 I Halliburton BAROID Losses + Seepage 5-20 bbUhr Static , Treat Active System with 5 sxlhr Baracarb 50/150 Yes ¡ I Drill Ahead I No , Increase Treatment to 10 sxlhr Baracarb 501 150 , No , Yes ~ I Drill Ahead 20 ppb LCM/Mud Pill: 20 bbls base mud 10 ppb Baracarb 50 10 ppb Baracarb 150 Yes + I Drill Ahead I No , Proceed to 'Partial Losses' Pill HV #7 v1.0 04/16//04 . UNOCAL . Mud Program UNOCAL Lost Circulation Decision Tree fl Payzone Mud Systems + Partial 20-60 bbl/hr Static , Treat Active System with 10 sxlhr Baracarb 150 Yes + I Drill Ahead I No , 50 ppb LCM/Mud Pill: 20 bbls Base mud 10 ppb Baracarb 25 20 ppb Baracarb 50 20 ppb Baracarb 150 Yes t I Drill Ahead I No , Contact the Engineer on call to determine if additional LCM treatments are to be made or to proceed to reverse gunk squeeze pill Severe 60-200 bbl/hr Static + . . 160-150 bbl/hr Static I 1150-200 bbl/hr Static I t t 1 Drill Across Fault I I Drill Across Fault I + + 100 ppb LCMlMud Pill: 20 ppb Baroseal f 20 ppb Baracarb 50 30 ppb Barofibre 20 ppb SteelSeal 10 ppb Baracarb 150 + I Contact Drilling Engineer or I Engineer "On Call" . Pump reverse gunk squeeze pill (Volume to be determined based upon losses Pump reverse gunk squeeze pill to allow POH (Volume to be determined based upon losses) ¡ I Contact Drilling Engineer I or Engineer on call ( + Total > 200 bbl/hr Static + Drill Across Fault . Pump reverse gunk squeeze pill to allow POH (Volume to be determined based upon losses , Contact Drilling Engineer or Engineer on call l . Plan to pump a second 50-80 bbl reverse gunk squeeze pill if massive losses continue. Consider cement I plugback contingency '\ 1 )UNOCAL must approve any steps past PARTIAL losses. 2) Drill across fault or loss zone 1.5 - 2.0 times the length of the throw before spotting reverse gunk squeeze pills. 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 pills. 4) LCM pill volume = 300'-600' column based upon actual hole diameter. 5)PRIOR TO ANY LCM PILL, APPROPRIATE DISCUSSIONS AT THE RIG MUST BE MADE TO MINIMIZE THE POTENTIAL FOR PLUGGING THE DRILL STRING. \ .J 12 . . I Halliburton BAROID UNOCAL Mud Program Gunks (WBM) Description The basic system forms a fairly soft plug. The addition of cement produces a firmer set which can withstand differential pressure and has a longer lifetime - this is known as DOB2C. Essentially the gunk treatment involves mixing bentonite, bentonite/polymer, or bentonite/cement powder blends into an oil such as diesel. This mixture is pumped down the drill pipe whilst water based mud is pumped down the annulus. When the two streams meet, a thick gunk (gel) is formed as the bentonite or other additives hydrate. This is then squeezed into the formation. The hardness of the gunk depends on the relative pump rates and the concentration of the pill (as well as the pill type). Typically the mud and pill would be pumped at similar rates and the pill would contain around 200-400ppb bentonite. In some situations environmental regulations may preclude the use of diesel oil. Low toxicity oils such as synthetic oils may be used in place of diesel but should be tested in the laboratory first. A cement unit is used for displacing the gunk squeeze. The pumping unit displaces the mixture down the drill string and the mud pump pumps fluid down the annulus. The slurry reacts with water so that precautions to keep water from prematurely contacting the slurry are needed. An oil spacer is pumped in front of and behind the pill. Benefits: · Temperature is not very important · Soft set avoids sidetracking problems (easy to wash/drill out) · Slurry will pass through most BHAs · Procedures are well established · Suited to large fractures/voids Limitations: · Placement - need to generate gunk in the right place · Flow rate and mix is important to achieve suitable consistency · Suitable experience required · Avoid premature mud contamination · Possible environmental restrictions dealing with oily returns · Effect can be short-lived due to softness of the plug (simple gunk) · May not work with high salt muds (>50,000 mg/I chlorides) HV #7 v1.0 04/16//04 13 . I Halliburton BAROID . UNOCAL Gel Gunk Squeeze Procedure Mud Program Formulation - 1 barrel . 0.7 bbl Diesel · 400 Ibs bentonite (density is approx. 10 Ib/gal) Mixing Procedure Mix in a cementing batch tank, not in the pits o Ensure the cement unit, batch tank and all associated pipework is completely drained and then flushed through with diesel o Add the bentonite to the diesel. Preferably add the bentonite through a mixing jet (not directly into the tank) to avoid lumps. o If the mixture becomes too thick to add the required quantity of bentonite, stop mixing and use the slurry as it is. o Test the gunk by mixing a sample of it 50/50 with the mud. Check the quality - it should be a consistency similar to chewing gum within 30 seconds. NOTE: If a highly inhibitive Mud does not allow the Gunk Squeeze to hydrate, then Freshwater, not the Mud, should be used to pump down the annulus AND to displace the Diesel Spacer - Gunk Squeeze-Diesel Spacer combination in the drill pipe. See below procedure. Suggested Procedure 1. Place the bit about 50-60' above the loss zone. 2. Line up mud pumps to pump simultaneously down the drillpipe and annulus. 3. Line up cement unit to pump down the drillpipe. 4. With the cement unit pump 10 bbls diesel followed by 40+/- bbls gunk and a further 10 bbls diesel, down the drillpipe. 5. Displace with the mud pump until diesel at the bit. Close annular. 6. Pump at 5 bpm down the drillpipe and 10 bpm down the annulus (use freshwater, if mud is too inhibitive) simultaneously until half of the gunk is out of the bit. 7. Pump at 5 bpm simultaneously down both the drillpipe and annulus until the gunk has been over displaced from the drillpipe by 5 bbls. 8. Squeeze gunk into the loss zone. Leave at least 5 bbls gunk inside the wellbore to prevent over- displacement. Try to establish a shut-in pressure at the end. 9. If successful, leave the gunk to firm up for 30 minutes prior to washing out. Comments The gunk pill is inert until it is mixed with water or water based mud. IT MUST ONLY CONTACT WATER BASED FLUIDS AS IT EXITS THE BIT. The purpose of initially pumping down the annulus at twice the rate down the pipe is to initially produce a slower reacting product that can penetrate the formation more easily. The last part of the gunk is mixed 50/50 and plugs the loss zone quickly. These flow rates are designed to get the gunk to the loss zone quickly after the gunk has been mixed with the mud (or fresh water). The progress of the job should be determined and monitored by the volume of displacement mud pumped down the drillpipe. HV #7 v1.0 04/16/104 14 . . I Halliburton BAROID UNOCAL Mud Program DOB2C (DIESEL OIL BENTONITE 2 CEMENT) PRODUCT INFORMATION AND APPLICATION DOB2C is a gel cement slurry that is mixed in diesel oil. It is typically used to cure severe loss circulation situations. DOB2C when contacted by water or a water base mud, will react, releasing the diesel and hydrating the cement. This reaction begins - 1 min after mixing. The degree and rate of reaction depends on how much water mixes with the DOB2C. SAFETY PRECAUTIONS Diesel Oil Slurries should be mixed wI adequate ventilation. The equipment used to mix the slurry must meet requirements to handle combustible materials. Review the MSDS for the slurry components and wear the proper PPE. Variations on this system which use alternative oils to diesel are possible but would require pilot testing. MIXING PROCEDURE 1. Mixing on location in a cement batch mixer. 2. Blend the required Cement and Bentonite at the bulk plant, if possible. Load this blend into a cement bulk truck. 3. To assure fluid integrity and avoid potential incompatibility situations all mixing and pumping equipment must be free of water. Circulate the batch mixer with warm diesel and isolate that material for use ahead and behind the DOB2C. 4. Measure the required volume of diesel fuel into the mixer. 5. Begin weighting up the diesel with the Bentonite cement blend. 6. One barrel of DOB2C is made up as follows: · 0.7 bbls Diesel Fuel (Arctic Diesel, #4 Diesel Oil (Mapco) or Mineral Oil) · 150 - 200 Ibs of Bentonite · 150 - 200 Ibs of Class G cement 7. Confirm the final density with a pressurized mud balance. 8. Allow the slurry to mix for 15 minutes prior to pumping. DOB2C (DIESEL OIL BENTONITE 2 CEMENT) PUMPING PROCEDURE It is important to the success of this operation to have a clear understanding of the loss rate. Both dynamic and static rates should be reviewed just prior to doing this job and incorporated into the final design. Various mixtures of drilling mud and DOB2C result in various degrees of a set product. Annular and drill string injection rates will be based on what the loss rate is at the time of the job. Treatment volume will be based a review of all available wellborelloss data with a typical minimum recommended volume to be 40 bbls, however, depending upon tubular and annular clearances alternative volumes may be utilized. 1. Go in hole with BHA suitable for pumping Loss Circulation material(s). When a bit is needed, remove the jets. If necessary, a PBL circulating sub in the drilling BHA is suitable for placement. RIH to - 60' above the loss zone. A minimum of 2 bbls hole volume above the loss zone. 2. Establish injection down the drill string. Monitor and record losses. The cement van will pump down the drill pipe. The rig will do any pumping down the backside. 3. Batch mix the DOB2C slurry. Additional warm diesel should be made available on location for equipment cleanup. The system will be effective when mixed with arctic diesel, #4 Mapco or mineral oil, as the base fluid. 4. All surface equipment used to mix and pump the slurry will be free of water. Any diesel required to accomplish this will be isolated and used in the spacer behind the DOB2C. HV #7 v1.0 15 04/16//04 . . I Halliburton BAROID UNOCAL Mud Program 5. "Typical" Pumping Procedure. Pump the treatment via dp at the maximum rate allowed as follows (The hydril is open): · Pump 10-15 bbls diesel oil pre-flush spacer · Pump DOB2C slurry · Pump 10-15 bbls diesel oil post-flush spacer · For maximum hydration ability, displace the squeeze to the bit with freshwater (40-50 bbls). Follow this with mud as needed. 6. When the diesel oil preflush is at the end of the bha, close hydrill and begin pumping down annulus with rig pumps. Match injection rates if possible to effectively mix the DOB2C with the annulus fluids. Too much dilution will soften the set product while too little water contact wIthe DOB2C will not release the diesel. The best reactions occur at a mixture of 1:2 and 1:3 water based mud:DOB2C. Reverse Gunks (OBM) Description This is the reverse procedure compared with ordinary Gunks. Typically, organophilic clay is mixed into an aqueous suspension and pumped down the drill pipe. The oil mud is pumped simultaneously down the annulus and gelation occurs when the two fluids meet. The gunk is squeezed into the formation: Note that it is not possible to add cement to strengthen the pill (unlike DOB2C used for WBM applications). Benefits: · Temperature is not very important · Soft set avoids sidetracking problems (easy to wash/drill out) · Slurry will pass through most BHAs · Procedures are well established · Suitable for large fractures/voids Limitations: · Placement - need to generate gunk in the right place · Suitable experience required · Avoid premature mud contamination · Mixing time/placement often greater than 6hrs · Effect can be short-lived due to soft plug formed · The type of clay used to make the treatment can be quite critical Procedures: Formulations (per 1 bbl) Formulation for "LmH'ightcd Rc\crse" Gunk Pill Water 0.66 bbl Caustic Soda 1.5 Ib Dispersant (Desco CF) 3.5 Ib Organophilic clay (Geltone) 2501b This formulation is provided as a guide only. The yield obtained will vary greatly dependant on the particular clay used. Pilot testing of the pill formulation is strongly recommended. The formulation given HV #7 v1.0 04/161104 16 . . I Halliburton BAROID UNOCAL Mud Program above will have a density of approximately 11.0 ppg. The slurry density can be increased to that of the active mud weight by viscosifying the water/clay slurry with XC polymer and adding barite. Formulation for "Weighted 13.0 ppg ReHrse" Gunk Pill Water O.63bbl Caustic Soda I.Slb Dispersant (Desco CF) 4.Olb Organophilic clay (Geltone) 150lb Barite 1751b Mixing I Displacement Procedure The pill should preferably be prepared in the cement batch tank. Ensure that the batch tank and all associated lines are clean by flushing thoroughly with a water based rig wash followed by large volumes of water. Add the ingredients in the order shown utilising as much shear as possible to disperse the organophilic clay (Geltone). A pill of approximately 30bbl is recommended. The resultant slurry is preferably pumped through open ended pipe but may be pumped through the bit if it is not practicable to POOH. The following displacement procedure should be strictly followed to prevent gelation within the drill pipe. Before the displacement the string should be pulled back to a height sufficient to leave the pill volume of open hole. 1. Pump 10bbl diesel base fluid 2. Pump 10bbl water 3. Pump the slurry (30bbl) 4. Pump 10bbl water 5. Pump 10bbl diesel base fluid 6. Displace the pill to the bottom of the drill string 7. If the hole is full, close the annular and squeeze at 300 - 500 psi into the formation 8. If the hole is full, close the annular and pump the pill at 1 bbl/min down the drill pipe and mud at 1 bbl/min down the annulus. 9. Allow at least 4 hours for the plug to set. Note: Ensure that the entire pill is pumped out of the string. Do not attempt to reverse circulate. HV #7 v1.0 04/16//04 17 . . I Halliburton BAROID UNOCAL Mud Program DrillinQ Fluids ProQram Synopsis 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. SUQQested Fluids Properties Surface Hole Properties: 0-1032' Density Viscosity 8.6 - 8.9 60 - 85 Plastic Viscosity 6 -16 Yield Point 25 - 40 API FL N/C Iili 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 Properties: 1 ,032 - 1500' 1500 - 4350' Density 8.7 -8.9 8.8-9.2 Viscosity 40-53 40-50 Plastic Viscosity 6 - 15 6 - 15 Yield Point 13 - 20 13 - 20 API FL N/C <8 Iili 8.5-9.0 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 & Gunk Squeeze procedures are attached should losses develop. Production Hole Properties: Density Viscosity PV YP ES HTHP FL WPS O/W 4350 - 10,000' 9.9 - 9.6* 45 - 60 18 - 29 11 - 20 1 000- <8 280 to 310K 80/20 fj 1100 10,000- TD 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. Happy Valley #7 - Suñace HV #7 v1.0 04/16//04 18 BAROID UNOCAL 6%KCI 45 ~ 3.326 ~ 5. d. x B. K X 5 10 15 20 25 0 50 1000 3B ~ hr flIT nmP The hole cleaning model indicates that 590 gpm and an ROP no more than 1 ft/hr will be needed to achieve good hole cleaning in this large welibore. If flowrates cannot maintained, remedial action such as high viscosity sweeps and circulating on connections may be required. BAROID UNOCAL Intermediate modeling 1000 r- ~ t~ 2000 ~~ 4.5 x 3J326 x 4092.0 Itl 3000 12.35 in 4000 5. x 3. x 150.0 Itl 6.75 x 2.813 x 100.0 It! Rotation must be optimized in this size hole and this angle. Rotation less than 100 rpm's indicates that there will be cuttings accumulation. At flowrates of 590 gpm (a the Kuukpik rig can achieve) an average of 110 ftlhr can be achieved. For an increase in rotational speed from 100 rpm to 120 rpm is recommended - a gain of 30 ft/hr is had with a gpm flow rate. A hole cleaning sweep strategy will required for ROPs 1 ftlhr. BAROID UNOCAL Production hole modeling 4.5 x 3.826 x 12074.0ft! 5 10 15 20 25 0 50 1000 315 B30 30 so 90 9.30 9.80 1 q h, flIT timp ,0 x 3 x f 7.25 x 2.813 x 107.0 it The recommended flowrate is 500-550 gpm, although 450 gpm will give adequate hole cleaning at 1 ftlhr. With 4.5" dp, hole cleaning at 150 ftlhr, within the pump pressure limitation (3600 psi), should be more than adequate with 80 rpm and gpm. H.) 9.3 PPG OHM using This line represents 3 % cuttings the max ROP for effective hole cleaning would At 100 ft/hr ROP, good hole cleaning Discussion: Effective hole cleaning takes place if below the loading in the annulus. model indicates that with be The corresponding pressure loss would be about can be achieved with as low as 350 gal/min, augmented with sweeps. AlìflUlar Section 13 -10900.0 ft Iblga! stepping Rotary ROf! . 1 s ¡ Hole Clean @ 100 rpm· 2min f Connection time . 5mkì 3OOf!1hr 10:40 10.35 10.30 125 500 Total psi ·5000 Happy \Isley #7 KuuIqi 5 4500 4000 vwaf/nuI 3500 fJ¡~= ppm = 300000 3000 800 = 59 100 = 14 300 = 34 6 3 2500 0=.928 k = .092561bJ1 orm2 sO 2000 1500 1000 500 galfmJn . . CITIBANK DELAWARE A Subsidiary of Citicorp ONE PENN'S WAY NEW CASTLE, DE 19720 62-20 31T Union Oil Company of California Accounts Payable Field Disbursing 2007778 UNOCALI76 Pay One Hundred Dollars And 00 Cents************************************************************** To the order of 19-APR-04 Check Amount ********100.00 Date STATE OF ALASKA ALASKA OIL & GAS CONSERVATION COMMISSION 333 WEST 7TH AVENUE SUITE 100 ANCHORAGE, AK 99501 United States or ,;, moo~ f'~:1L III 200 ? ? ? B III I: 0 :I . .00 2 0 g I: :I g . . B . :I ? III RECEIVED APR 1 9 2DD4 Alaska Oil & G as Cons C . Anchorage' Dl11n1lssion . . TRANSMITAL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/P ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME PTD# Development Service CHECK WBA T APPLIES ADD-ONS (OPTIONS) MULTI LATERAL (If API Dum ber last two (2) digits are between 60-69) Exploration Stratigraphic ·'CLUEn Tbe permit is for a new well bore segment of existing well Permit No, API No. Production. sbould continue to be reported as a function· of the original API number. stated above. BOLE In accordance with 20 AAC 25.005(t), an records, data and logs acquired for the pilot bole must be dearly differentiated In botb name (name on permit plus PH) and API Dum ber (50 70/80) from records, data and logs acquired for well (name on permit). PlLOT (PH) SPACING EXCEPTION DRY DITCH SAMPLE Tbe permit is approved subject ·to fuD compliance witb 20 AAC 25.05S~ Approval to perforate and produce is contingent upon issuance of;¡ conservation order approving a spacing e:JCeption. (Companv Name) assumes tbe liability of any protest to the spacingeJception tbat may occur. An dry ditch sample sets submitted to tbe Commission must be in no greater ·tban 30' sample intervals from below tbe permafrost or from wbere samples are first caught and 10' sample intervals through target zones. . . D ~ Well bore seg Annular Disposal Field & Pool HAPPY VALLEY, UNDEFINED GAS - 290500 Well Name: HAPPY VALLEY 7 Program DEV PTD#: 2040680 Company UNION OIL CO OF CALIFORNIA Initial ClassfType DEV 11-GAS GeoArea Unit On/Off Shore On Administration 1 Permittee <!ttache_d _ - - - - - - - - - - - - - - - - - - - - - - _ _ _ _ _ Yes - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2 _Le<!senumberappropriate _ - - - - - - -- - - - - - _ _ _ _ _ Yes - - - - - - - - - - - - - - - - - - - - 3 _U_nlque well_n_arne_afld ou.mb_er _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y_es - - - - - - - - - - - - - - - - - - - - - - - - - . . -. - - - - - - - - - - - - - 4 WeJUQcated in_a_ ciefil1edpool - - - - - - - - - - - - - - - _ _ _ _ _ No_ - - - - - - - - - - - 5 WelUQcated pcoper _dlstance3rom driJling ul1itb_oul1d_ary_ _ _ _ _ _ _ _ _ _ No _ _ _ _ _ A SPACING EX_C_EPTtQN IS REQUIRED fOR PROXIMITY TO A SECTIONLJNE._ 6 WelUQC<lted proper _dlstaflce_ from otber welJs_ _ _ _ _ Yes _ _ _ _ HEARING NOJ"ICE I-IAS BEN DRAJ=1ED_ 7 _S_u{ficieI1Lacre<!ge_ay<!iIable In_drilliog u.njL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Yes - - - - - - - - - - - - - - - - - - - - 8 Jtdeviated, js_ weJlbQre platil1cJu_ded _ _ _ - - - - - - Yes - - - - - - - - - - - - - - - - - - - 9 _OJ)erator Ol1ly <!ffected party _ _ _ _ _ _ _ _ - - - - - - - - - - - - - - - No - - - - - - - - - - - - - - - -- 10 .0J)ecator bas_appr.oprlateJ~ond inJorce _ . . . _ _ _ _ _ _ _ _ . . _ . . _ _ . _ _ _ _ _ _ _ Yes - - - - - - - - - - - - - - - - - - - - - - - - 11 Permit c_afl be issu.ed wjtbQut co_nserva_tiOI1 order _ _ _ _ _ - - - - -- - - - - - No - - -- - - - - - - - - - - - - - - - - - - Appr Date 12 Permit ~afl be lssu.ed witbQut acimil'Jistratil¡e_appr.oval _ _ _ _ _ _ _ _ _ _ _ Yes - - - - - - - - - RPC 4/22/2004 13 Can permit be approved before 15-day wait No 14 WellJQC<lted withil1 <!rea alld_strataauthorized by_lojectioo Order # (put 10# in_ c.ommeots) (For _ NA - - - - - - - - - - - - - - - - - - - 15 _AJI welJs_witJ1[nJl4.mile_area_of reyiew ideot[fied (F.or seNjc.ewell Ol1ly). _ . . . . _ _ _ _ _ _ _ _ . _NA - - - - - - - - - - - - - - - - - - - - - - -- 16 Pre-produced injector; øuration_of prß-:ProduGtic:>I1 less t\1<!n_ 3 mOl1tbs (For_serYtce well onJy) . _ _NA - - - - - - - - - - - - - - - - - - 17 ACMP. F:il1djng of Consi,Steflcy_h_as been issued_ for_ tbis project NA - - - - - - - - - - - - - - - - Engineering 18 Coodu.ctor strin.gprovided _ _ _ _ _ _ _ _ - - - - - - - - - - - - Yes - - -- - - - - - - - - - - - - - - - - - - 19 S_ur:f<!ce_casil1gprote~ts all_knowll USDWs _ _ _ _ _ Yes - - - - - - - - 20 _CMTvoladßQuateJo circ_ulateoncol1d_uçtor.& SUJtcsg _ _ _ _ .Yes · . _ _ _ AdeJ: uate excess, _ _ _ _ _ 21 _CMT vol adßQuate to tie-in Jong _string to_surf CS9- - - - - - - Yes - - - - - - - - - - - - - - - - - - - - 22 CMTwill coyer_all kl'Jow_npro_ductiYe bori;!:on_s_ _ _ _ _ _ _ _ Yes - - - - - - - - - - - - 23 C_asiflg de_sigflS <!cieQua.te f.or C,_T" B_&Rermafrost _ Yes - - - - - - - - - - 24 Adequate tankage_or reserye pit _ _ _ _ _ _ _ - - - - -- Yes _ _ _ Ku.ukpils Rig_5, _ _ _ . 25 JtaJe-drilt \1asa to:40;3 for abandOnment beeo approved _ _ _ _ _ NA · . _ _ _ New welt . _ _ _ _ _ _ _ _ . 26 .Mequatewellbore. separatjo_nJ)roposed. _ _ _ . _ _ _ . . _ _ _ _ _ _ _ _ _ . . . _ _Yes - - - - - - - - - - - - - - - - - - - - - - - ~ 27 Jtdivecter Jequire.d, does ¡tmeet reguJatiol1s_ _ _ _ _ - - - - - - - - _ _NA · _ . _ _ Oiverter waiver re,queste_d, Appr Date 28 _DriUiog fluid_ program s~hematic& equip Jistadequate _ _ _ _ _ _ . _ _ Yes · . _ _ _ MaxMW9~6.ppg, _ _ _ _ . WGA 4/23/2004 29 BOPEs,d_o_they me!'!treguJatiol1 _ _ _ _ . - - - - - - - - - - - - - - - Yes - - - - - - - - - - - - - - - - - - - - - - 30 _BOPE_press ra!iog approp(iate;test to_(pu_t psig in_comm~mts). . .Yes · _ _ _ _ Test t.o 4500_ psi. _MSF> 3717 psi 31 _C_hokemanjfold compJies w/APLRF>-53 (May 84). . _ _ _ . - - - - - - Yes 32 Work will occ_ur withoytoperatio_n _sbu.tdown _ _ _ _ _ _ _ _ - - - - - - Yes 33 .Is. pres.eflce_ of H2S g<!s prOQable _ _ _ - - - - - - -- - - - - - - No 34 Me.cba_nicaLcoodJt[Ofl .of wells withil1 AOR Yerified (for.s_ervic!'! wel] ollly) _NA - - - - Geology 35 Permit can be issu.ed wfo hydcogen sulfide measures _ _ Yes - - - - 36 _D_atapres!'!l'Jted on_ pote_ntial oveJpres_suœ _zOl1eJ> _ _ _ _ _ _ . . . _ .Yes Appr Date 37 _Setsrnicanalysjs_ of J>baJlow gasz_ooes_ _ _ _ NA - - - - - - - - -- RPC 4/22/2004 38 _SeabedcOl1ditioo su.rvey _(if off-shore) _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA 39 . Conta_ct l1amelpJ1on.eJor_weelsly progress_reports [explorato() _ _ _ NA ~ Geologic Date: Engineering Dare { Date Commissioner: Commissioner tift- /or #0 0/21 / cJ--