The URL can be used to link to this page

Home My WebLink About204-106 . STATE OF ALASKA • ALI.OIL AND GAS CONSERVATION COMMISSION RECEIVEC REPORT OF SUNDRY WELL OPERATIONS NOV 19 2015 1.Operations Abandon ❑ Plug Perforations U Fracture Stimulate Pull Tubing J �Operations shutdown Performed: Suspend ❑ Perforate [ Other Stimulate ❑ Alter Casing Change Approved Program Plug for Redrill ❑ 3rforate New Pool ❑ Repair Well ❑ Re-enter Susp Well❑ Other: ❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number Name: Hilcorp Alaska,LLC Development ❑ Exploratory ❑✓ 204-106 ' 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,AK 99503 50-231-20022-00 7. Property Designation(Lease Number): 8.Well Name and Number: • FEE-CIRI HAPPY VALLEY A-07 • 9. Logs(List logs and submit electronic and printed data per 20AAC25.071): 10. Field/Pool(s): N/A HAPPY VALLEY-HV BELUGA/TYONEK GAS • 11.Present Well Condition Summary: 7,650; Total Depth measured 10,274 • feet Plugs measured 9,720;9,976 feet true vertical 9,001 .. feet Junk measured N/A feet Effective Depth measured 10,205 feet Packer measured 4,182&6,726 feet true vertical 8,935 feet true vertical 3,907&5,963 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 80' 18-5/8" 80' 80' Surface 1,008' 13-3/8" 1,008' 1,008' 3,450psi 1,950psi Intermediate 4,331' 9-5/8" 4,331' 4,030' 5,750psi 3,909psi Production 2,728' 7" 6,910' 6,111' 7,240psi 5,410psi Liner 3,546' 3-1/2" 10,272' 8,998' 1,150psi 10,540psi Perforation depth Measured depth See Attached Schematic ANNA FEB 0 2 2016 True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) 3-1/2" 9.3#/L-80 6,764'MD 5,994'TVD 2 Baker ZXP Packers 4,182'&6,726'MD 3,907'&5,963'TVD Packers and SSSV(type,measured and true vertical depth) N/A N/A N/A N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 368 0 Subsequent to operation: 0 0 0 368 52 14.Attachments(required per 20 AAC 25.070.25.071,&25.283) 15.Well Class after work: Daily Report of Well Operations .❑ Exploratory ❑Development H ti p Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16.Well Status after work: Oil ❑ Gas El WDSPL❑ Printed and Electronic Fracture Stimulation Data ❑ GSTOR ❑ WINJ ❑ WAG LI GINJ ❑ SUSP❑ SPLUG[i 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 315-629 Contact Taylor Nasse-777-8354 Email tnasset( hH corp.com Printed Name Chad Helgeson Title Operations Manager Signature 7:—/ Phone 907-777-8405 Date it/171/..5— Form sForm 10-404 Revised 5/2015 /7.3 •/`s RBDMS` fi(1V 2 4 1015 Submit Original Only • • • Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date WEnd Date HVA-07 E-Line 50-231-20022-00 204-106 10/23/15 11/6/15 Daily Operations: 10/23/2015- Friday PTW and JSA. Rig up lubricator, PT to 250 psi low and 3,500 psi high. Check line and found it was shorted between slip ring and truck.The wireline itself showed to be ok. Trouble shoot and found problem. RIH w/2.75" GR/junk basket, tie into OHL sent by Jeremy and tag obstruction at 10,162'. Found fluid level at 2,490'. POOH. No problems. RIH w/Map Oil Tools wide range (2.28" OD) plug and tie into OHL. Run correlation log and send to town. Get ok to set plug V''a-. at 9,976' (have a collar at 9,984'). Spot and set plug at 9,976'. Took 2-1/2 min to set (lost some tool string wt). Pick up 30' and slack back down hole and lightly tag plug. Good set. Had 0 psi on tubing when plug was set. POOH and everything looked good. Ran 2" x 20' bailer and dump bailed 10' of cement on top of plug at 9,976'. Cement In place at 1630 hrs. TOC est to be 9,966'. POOH. Good dump. Rig for standby. Will wait on cement until Sunday morning and then start swabbing operations. I have the sample of cement with me. 10/25/2015-Sunday PTW and JSA. Spot equip and rig up lubricator. PT to 250 psi low and 3,500 psi high. TP—0 psi. RIH w/ 1.75" bailer and 2.75" cent and tag TOC at 9,975' WLM K. Spudded 1-1/2' and hit hard cement. POOH. Had 1' contaminated cement and W hard cement. (TOC tied into E-line log is 9,966'). Fluid level was 100'. RIH w/swab tool string (tandem 3-1/2" swab cups) and swab fluid from tubing from 100' to 4,020'. Strapped tank and got 36.2 bbls out of well. 4,000' of 3- 1/2" tubing calls for 34.79 bbls. Pulled up to 3,500' and waited for 30 min and went back down and tagged fluid at 4,020'. POOH. Called town and decided to leave fluid level like it is. Rig for standby. .p/26/2015 - Monday j,/PTW and JSA. Rig up lubricator, PT to 250 psi low and 3,500 psi high. Arm gun. RIH w/2-1/2" x 13'. Razor HC, 6 spf, 60 deg phase and tie into OHL sent from town. Run correlation log and send to town. Get ok to perforate from 9,741'to 9,754'. Pressured tubing up to 510.2 psi. Spot shot and fired gun. After 5 min tubing pressure was 509.0 psi. POOH, all shots fired. RIH w/2-1/2" x 10' Razor HC, 6 spf, 60 deg phase and tie into OHL sent from town. Get ok to perforate from 9,731'to 9,741'. Spot shot and fired gun with 496.7 psi on tubing. After 5 min tubing pressure was 496.0 psi. POOH all shots fired. Rig down lubricator for standby. 10/27/2015 -Tuesday PTW and JSA. Rig up lubricator, PT to 250 psi low and 3,500 psi high. MU swabbing assy. TP built up from 62 psi to 77 psi overnight. RIH with 2 sets 3-1/2" swab cubs and tag fluid level at 3,890'. Swabbed to 5,900'. Started tearing up swab cups and losing fluid before getting to surface. RIH with 3-1/2" wireline brush and brushed tubing down to 7,000' to try and smooth tubing wall so it doesn't tear up cups. POOH. RIH with swabbing assy down to 7,000' took a big bite aand half way out of hole tore up swab cubs and lost fluid. Did this twice. Called town and decided that it was about as far as we cold swab. Rig down lubricator and rig for standby. 10/29/2015-Thursday • • • Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date • HVA-07 E-Line 50-231-20022-00 204-106 10/23/15 11/6/15 Daily Operations: PTW and JSA. Rig up lubricator, PT to 250 psi low and 3,500 psi high.TP is 20 psi. Make up Map Oil Tools wide range (2.28" OD) plug. RIH w/ Map Oil Tools wide range (2.28" OD) plug and tie into partial OHL( sent by Jeremy). Run correlation log and send to town. Get ok to set plug at 9,720'. Set plug with 22.5 psi on tubing. Pick up 30' and go back down and lightly tag plug. POOH. Good set. RIH w/2-1/2" x 20' dump bailer filled with cement and dump bailed cement on top of plug at 9,720'. POOH. Good dump. Cement in place at 1300 hrs. Est top of cement at 9,710'. Rig down lubricator for standby. Wait on cement. Ptm „4'Z-- 10/30/2015 - Friday PTW and JSA. Rig up slick Line lubricator, PT to 250 psi low and 3,500 psi high. TP is 23.5 psi. Start pressuring up tubing. RIH w/ 1-3/4" x 3' sample catcher w/2-1/2" centralizer and tag top of cement at 9,705 WLM (400 psi on tubing and still building). POOH. Catcher had 1/2' contaminated cement and 1/2' hard cement. Will keep building up pressure on tubing until we have all we can put on it. PTW and JSA. Rig up E-Line lubricator, PT to 250 psi low and 3,500 psi high. TP is 425 psi. on tubing. Arm gun. RIH w/2-1/2" x 16' Connex HC, 6 spf, 60 deg phase perf gun and tie into partial OHL sent by Jeremy. Run correlation log and send to town. Get ok to perf from 7,671' to 7,687'. Pressured tubing up to 744.5 psi. Fired gun with 744.5 psi. Pressure went to 770 psi and back down to 730 psi couple times and after 5 min leveled off at 744.9 psi. Up in lubricator and pressure was 739.0 psi.All shots fired. Rig down lubricator for standby. 10/31/2015-Saturday PTW and JSA. PT slick line lubricator to 250 psi low and 3,500 psi high. TP is 53 psi. Gained 1 psi over night for build up. RIH with 2.62" blind box and found fluid level at 5,960' WLM. Tagged top of cement at 9,703'.TP - 53 psi. Rig down lubricator for standby. 11/03/2015-Tuesday Obtain PTW from production lead. Hold safety meeting and discuss job procedure. MIRU. Make up 3.5in CIBP and tool string. CCL to top of CIBP 15'. Pressure test lubircator 250/3,500 psi. Good pressure test. Open well and RIH. WHP 60 psi. Pull correlation pass from 7,820' to 7,500'. Send to town. Log on depth per Jeremy M. Park CCL at 7,635'. Puts top of CIBP at 7,650'. Set plug. Saw both slips engage as well as drop in line tension. Pick up 100'. RIH and confirm CIBP set at 7,650'. POOH. At surface breaking down CIBP setting tools. MU 2in dump bailer loaded with 4 gallons of cement. RIH. Tag @ 7,650'. Shear glass. Dump cement 12 ft estimated. POOH. At surface. Well secure. Stack down lubricator. Cement sample with Dean Gardner. He will determine what time tomorrow to have SL out for a tag. Location secure. 11/06/2015 - Friday • • • Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date HVA-07 E-Line 50-231-20022-00 204-106 10/23/15 11/6/15 Daily Operations: Waiting on Halliburton north slope crew. PTW and JSA. Rig up lubricator, pressure test to 250 psi low and 3,500 psi high. Arm gun. RIH w/2-1/2" x 20' Connex HC, 6 spf, 60 deg phase perf gun and tie into partial OHL sent by Jeremy. Run correlation log and send to town. Get ok to perf from 7,196'to 7,216' (bottom 20' of the T6 40' zone). Fired gun with 564 psi on tubing. After 5 min pressure was 565 psi. POOH and all shots fired. RIH w/2-1/2" x 20' Connex HC, 6 spf, 60 deg phase perf gun and tie into partial OHL sent by Jeremy. Run correlation log. Spot gun from 7,176'to 7,196' (top 20' of the T6 40' zone). Fired gun with 557 psi on tubing. After 5 min pressure was 558 psi. POOH and all shots fired. FL looked like it was at 5,810'. RIH w/2-1/2" x 20' Connex HC, 6 spf, 60 deg phase perf gun and tie into partial OHL sent by Jeremy. Run correlation log. Spot gun from 7,126'to 7,146'. Fired gun with 556.2 psi on tubing.After 5 min pressure was 557.4 psi. POOH and all shots fired. Rig lubricator down. Halliburton will come back out in AM to finish rig down and get equipment after road is sanded. Deep Creek(Happy Valley) 0 Well: , ti • SCHEMATIC omp et onODate: 08/25/04 API#: 50-231-20022-00 Itllcuro Alaska,LLC PTD: 204-106 RKB:22.5'MSL=739' I 11J , I CASING DETAIL 13-3/8'4' R+ Size Type Wt/Grade/Conn ID Top Btm 18-5/8' Conductor 87.5/K-55/BTC Surf 80' 13-3/8" Surface 68/K-55/BTC Surf 1,008' 1 9-5/8" Intermediate 40/L-80/BTC Surf 4,331' rg ® 2 7" Liner 26/L-80/IBT-Mod 4,182' 6,910' 95/8" TUBING DETAIL 3-1/2" Tubing 9.3/L-80/EUE 8RD Mod Surf 6,764' NOTE:Annulus loaded with fresh water(no inhibitor added) t f JEWELRY DETAIL 's we No Depth Item Chemical Injection Side ocket Mandrel/Macco SF0-1C-I y 1 2,488' 1 P ,, with''/ ,0.049"wall SS chemical injection line 2 4,182' Baker ZXP Packer � ' 3 Baker ZXP Packer w/Flexlock liner hanger and 80-40 4 MI 3 6,726' sealbore assembly to • • 5 4 6,731' Locator Sub 7„ 5 6,764' Muleshoe 6 7,650' CIBP w/10ft.of cement 7 9,720' CIBP w/10ft.of cement 8 9,976' CIBP w/10ft.of cement 4 z PERFORATION DETAIL :, Sands Top(MD) Btm(MD) Top(TVD) Btm(TVD) SPF FT Date Status 1-6 7,126' 7,146' 6,284' 6,300' 6 20 11/06/15 Open ' , „' T-6 7,176' 7,216' 6,324' 6,356' 6 40 11/06/15 Open T-17 7,671' 7,687' 6,722' 6,735' 6 16 10/30/15 Isolated e` ` T-63 9,731' 9,754' 8,488' 8,510' 6 23 10/26/15 Isolated 1-80 9,998' 10,018' 8,738' 8,757' 6 20 08/24/04 Isolated t OPEN HOLE/CEMENT DETAIL 13-5/8" Cmt w/81bbl of cement in 16"Hole ' 9-5/8" Cmt w/189bb1 of cement in 12-1/4"Hole 1 7" Cmt w/52bbl of cement in 8-1/2"Hole 3-1/2" Cmt w/103.5bb1 of cement in 6-1/8"Hole T-6 1 p , 6 1v Directional Data: - T-17 max hole angle=37.4 deg at 6,161' KOP=1,868' 7 tel'lt/° max dogleg=3.9 deg/100'at 4,713' a T-63 4 s i a‘t�s - T-80 3-1/2" .j ' , TD=10,274'MD/9,001'TVD PBTD=10,205'MD/8,935'ND Updated by DMA 11-13-15 • • ti OF I//7, s� THE STATE Alaska Oil and Gas �w =y91pfA LAsKA COIlSeYVatl®n Commission z ,_ :_ 333 West Seventh Avenue F GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 Main: 907.279.1433 Oic ALASY'P Fax: 907.276.7542 www.aogcc.alaska.gov Taylor Nasse O / Operations Engineer _ O4 Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Deep Creek Field, HV Beluga/Tyonek Pool, Happy Valley A-07 Sundry Number: 315-629 Dear Mr. Nasse: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, tf, , � v Cathy ''. Foerster Chair DATED this/#ay of October, 2015 Encl. • • f ED STATE OF ALASKA ((CT 0 6 2015 ALASKA OIL AND GAS CONSERVATION COMMISSION 0 a 113( rs APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1.Type of Request: Abandon❑ Plug Perforations ❑, ' Fracture Stimulate ❑ Pull Tubing ❑ Operations shutdown ❑ Suspend❑ Perforate ❑Q • Other Stimulate ❑ Alter Casing ❑ Change Approved Program ❑ Plug for Redrill❑ Perforate New Pool 0 Repair Well ❑ Re-enter Susp Well ❑ Other. ❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number. Hilcorp Alaska,LLC Exploratory ❑ Development ❑� 204-106 - 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic ❑ Service ❑ 6.API Number. Anchorage,AK 99503 50-231-20022-00 7.If perforating: L/ 2,),7 4;0 -1,rf8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? CO)6'�•• HAPPY VALLEY A-07 • Will planned perforations require a spacing exception? Yes ❑ No ❑✓ • 9.Property Designation(Lease Number): 10.Field/Pool(s): FEE-CIRI • DEEP CREEK-HV BELUGA/TYONEK GAS • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth ND(ft): Effective Depth MD(ft): Effective Depth ND(ft): Plugs(measured): Junk(measured): 10,274 • 9,001 • 10,205 • 8,935 • N/A N/A Casing Length Size MD ND Burst Collapse Structural Conductor 80' 18-5/8" 80' 80' Surface 1,008' 13-3/8" 1,008' 1,008' 3,450 psi 1,950 psi Intermediate 4,331' 9-5/8" 4,331' 4,030' 5,750 psi 3,909 psi Production 2,728' 7" 6,910' 6,111' 7,240 psi 5,410 psi Liner 3,546' 3-1/2" 10,272' 8,998' 10,150 psi 10,540 psi Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 3-1/2" 9.3#/L-80 6,764'MD Packers and SSSV Type: Packers and SSSV MD(ft)and ND(ft): 2 Baker ZXP Packers;N/A 4,182'MD/3,907'ND&6,726'MD/5,963'ND;N/A 12.Attachments: Description Summary of Proposal Q 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic❑ Development 2 • Service ❑ 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: October 20,2015 OIL ❑ WINJ ❑ WDSPL 0 Suspended ❑ 16.Verbal Approval: Date: GAS ❑✓ • WAG ❑ GSTOR ❑ SPLUG ❑ Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Taylor Nasse Email tnassehilcorp.com Printed NameTaylor Nasse Title Operations Engineer /12/1Signature Phone 907-777-8354 Date I 0/C/kS COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 316 I _ 2—SPlug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ (� Other: Spacing Exception Required? Yes ❑ No LSubsequent Form Required: Ret° ^ APPROVED BY Approved by: /�J COMMISSIONER THE COMMISSION Date:/el_../3 —/5 � Submit Form and Form 10-403 Rev /2015 �r 1�^1kk0ieGilII A lid for 12 months from the date of approval. Attachments in Duplicate Y7/4---,7'c / • • Well Prognosis Well: HVA-07 lcorp Alaska,LL Date: 10/05/2015 Well Name: HVA-07 API Number: 50-231-20022-00 Current Status: Shut In Leg: N/A Estimated Start Date: October 20th, 2015 Rig: N/A Reg.Approval Req'd: 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 204-106 First Call Engineer: Taylor Nasse (907)777-8354 (0) (907) 227-5293 (M) Second Call Engineer: Chad Helgeson (907)777-8405 (0) (907) 229-4824 (M) AFE Number: Maximum Expected BHP: — 3,448 psi @ 8,018' TVD (Assumed 0.43 psi/ft gradient) Max. Allowable Surface Pressure: —2,645 psi (Based on gas gradient to surface 0.10psi/ft) Brief Well Summary HVA-07 was drilled in 6/2004 by Unocal targeting Tyonek pay across the N-S trending fault that separate the Happy Valley Field from the Deep Creek down thrown block. It was only perforated in the T-65 sand which did not flow any gas. The purpose of this sundry is to plugback the T-65 interval and add perforations in the Tyonek sands. Notes Regarding Wellbore Condition • Well is currently shut in. • Slickline tag and make gauge ring run prior to starting work. E-line Procedure: 1. MIRU e-line and PT lubricator to 3,500 psi Hi 250 Low. 2. RIH with CIBP and set at±9,990' MD. 3. If necessary, bleed pressure down as requested by the RE to establish a drawdown on the formation. 4. Perforate the Tyonek sands with 2-1/2" 6 SPF 60 deg phased perf guns. Depths are from the Reeves Compact Nuclear Porosity Identification log dated July 22, 2004. Send the correlation pass to Taylor Nasse and Dave Buthman for confirmation. Zone Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) Ft SPF Date Status Tyonek T-6 7,126' 7,146' 6,284' 6,300' 20 TBD Proposed T-6 7,176' 7,216' 6,324' 6,356' 40 TBD Proposed T-17 7,671' 7,687' 6,722' 6,735' 16 TBD Proposed T-63 9,731' 9,754' 8,488' 8,510' 23 TBD Proposed 5. POOH. 6. Flow well through test separator and record water and gas rates. • i Well Prognosis Well: HVA-07 Hilcorp Alaska,IJ.. Date:10/05/2015 Note: If any of the sands are not commercial,then the zone will be plugged back with a bridge plug or casing patch. 7. RD e-line. 8. Turn well over to production. Attachments: 1. Actual Schematic 2. Proposed Schematic Deep Creek(Happy Valley) . 13 H . • Well: HVA-07 SCHEMATIC Completion Date: 08/25/04 API#: 50-231-20022-00 Hilcorp Alaska,LLC PTD: 204-106 RKB:22.5'MSL=739' l13:3/8'10 I CASING DETAIL Size Type Wt/Grade/Conn ID Top Btm 18-5/8' Conductor _ 87.5/K-55/BTC Surf 80' 1,,,' 13-3/8" Surface 68/K-55/BTC Surf 1,008' :w 1 9-5/8" Intermediate 40/L-80/BTC Surf 4,331' AIE Dii2 7" Liner 26/L-80/IBT-Mod 4,182' 6,910' *VIVA. 5„11 9-5/8" TUBING DETAIL 3-1/2" Tubing 9.3/L-80/EUE 8RD Mod Surf 6,764' NOTE:Annulus loaded with fresh water(no inhibitor added) R JEWELRY DETAIL No Depth Item 1 2 488' Chemical Injection Sidepocket Mandrel/Macco SFO-IC-I t with 4",0.049"wall SS chemical injection line 2 4,182' Baker ZXP Packer 3 Baker ZXP Packer w/Flexlock liner hanger and 80-40 „..li ►�� 4 3 6,726' sealbore assembly 5 4 6,731' Locator Sub 7„ 5 6,764' Muleshoe • J v° , + PERFORATION DETAIL 14 Sands Top(MD) Btm(MD) Top(TVD) Btm(TVD) SPF FT Date Status T-80 9,998' 10,018' 8,738' 8,757' 6 20 08/24/04 Open $R ,k 1 s , t .LA ., OPEN HOLE/CEMENT DETAIL 13-5/8" Cmt w/81bbl of cement in 16"Hole k ' 9-5/8"9-5/8" Cmt w/189bb1 of cement in 12-1/4"Hole t` q*aV , 7" Cmt w/52bb1 of cement in 8-1/2"Hole i. 3-1/2" Cmt w/103.5bbl of cement in 6-1/8"Hole Directional Data: max hole angle=37.4 deg at 6,161' :,, KOP=1,868' ° ;A max dogleg=3.9 deg/100'at 4,713' V. T-80 s 3-1/2" .ti i, { TD=10,274'MD/9,0011VD PBTD=10,205'MD/8,935'ND Updated by DMA 10-02-15 n • PROPOSED Creek (Happy Valley) • Well: HVA 07 SCHEMATIC Completion Date: 08/25/04 API#: 50-231-20022-00 Ilik r„Alaska.t.LC PTD: 204-106 RKB:22.5'MSL=739' 1 I CASING DETAIL 13-3/8'1 Size Type Wt/Grade/Conn ID Top Btm 18-5/8' Conductor 87.5/K-55/BTC Surf 80' 13-3/8" Surface 68/K-55/BTC Surf 1,008' IIII- M1 1 9-5/8" Intermediate 40/L-80/BTC Surf 4,331' X ® 2 7" Liner 26/L-80/IBT-Mod 4,182' 6,910' TUBING DETAIL 9-5/8" • 3-1/2" Tubing 9.3/L-80/EUE 8RD Mod Surf 6,764' NOTE:Annulus loaded with fresh water(no inhibitor added) JEWELRY DETAIL No Depth Item 1 2,488, Chemical Injection Sidepocket Mandrel/Macco SFO-IC-I with A",0.049"wall SS chemical injection line 2 4,182' Baker ZXP Packer 3Baker ZXP Packer w/Flexlock liner hanger and 80-40 14 lin •3:, 4 3 6,726' sealbore assembly ' • , 5 4 6,731' Locator Sub 7 5 6,764' Muleshoe 6 9,990' CIBP PERFORATION DETAIL i Sands Top(MD) Btm(MD) Top(TVD) Btm(TVD) SPF FT Date Status T-6 7,126' 7,146' 6,284' 6,300' 6 20 TBD Proposed T-6 7,176' 7,216' 6,324' 6,356' 6 40 TBD Proposed T-17 7,671' 7,687' 6,722' 6,735' 6 16 TBD Proposed r- T-63 9,731' 9,754' 8,488' 8,510' 6 23 TBD Proposed 1-80 9,998' 10,018' 8,738' 8,757' 6 20 08/24/04 Open . OPEN HOLE/CEMENT DETAIL 13-5/8" Cmt w/81bb1 of cement in 16"Hole 9-5/8" Cmt w/189bb1 of cement in 12-1/4"Hole 7" Cmt w/52bb1 of cement in 8-1/2"Hole 3-1/2" Cmt w/103.5bb1 of cement in 6-1/8"Hole A 1 1 Directional Data: max hole angle=37.4 deg at 6,161' `/ KOP=1,868' _ - T-6 max dogleg=3.9 deg/100'at 4,713' .a. , •f't T-17 • T-63 x- - ; 6 i. I T-80 3-1/2" A- ' TD=10,274'MD/9,001'TVD PBTD=10,205'MD/8,935'TVD Updated by DMA 10-02-15 • • Note to File Happy Valley A-07 (PTD 204-106) CO 553 established Pool Rules for the Happy Valley Beluga/Tyonek Gas Pool within the Deep Creek Unit. However, CO 527—the spacing exception for well Happy Valley No. 7 (since renamed Happy Valley A- 07)—governs operations within this well as the productive interval and bottom-hole locations lie outside of the Affected Area of CO 553. Steve Davies AOGCC October 7, 2015 ........... c~ 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. ~O If - L 0 0 Well History File Identifier Organizing (done) o Two-sided 1111111111111111111 o Rescan Needed 11I1111111111111 III R,CAN \¢' Color Items: o Greyscale Items: DIGITAL DATA OVERSIZED (Scannable) o Maps: D Other Items Scannable by a Large Scanner D Diskettes, No. D Other, NolType: o Poor Quality Originals: o Other: O~SIZED (Non-Scannable) 0' Logs of various kinds: NOTES: D Other:: BY: r Maria) Date: , , 9, :1Dl00 151 (Ý!) BY: ? Maria "} 1 , Date: q.30JOb lP X 30 = 18'0 Date: c¡ J 3n / oh 11I1111111111111111 01P + Lt = TOTAL PAGES 1?f4- (Count does not include cover sheet) ;A !...J 151 r V I 1111111111111111111 151 Project Proofing Scanning Preparation BY: ç. Maria ) Production Scanning Stage 1 Page Count from Scanned File: I g S (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: ~ YES ç Maria') Date:cr!ao JOb If NO in stage 1, page(s) discrepancies were found: YES NO 151 V\{J NO BY: Stage 1 BY: Maria Date: 151 11I1111111111111111 Scanning is complete at this point unless rescanning is required. ReScanned 1111111111111111111 BY: Maria Date: 151 Comments about this file: Quality Checked III "11111111111111 1 0/6/2005 Well History File Cover Page.doc • • _ ,~.._ . ,:~__ ~~°°" .AZ. ~,. afi'+ v~.~ ~. MICROFILMED 03/01/2008 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE F:~LaserFiche\CvrPgs_Inserts\Mierofilm Marker.doc ~ç-~ DATA SUBMITTAL COMPLIANCE REPORT 9/11/2006 Permitto Drill 2041060 Well Name/No. HAPPY VALLEY A-7 MD 10274./ TVD 9000 /' Completion Date 8/25/2004 r _...~.-----".~.~-~~~- ----_._~~-- REQUIRED INFORMATION Mud Log No DATA INFORMATION Types Electric or Other Logs Run: Sonic Bond Log Well Log Information: Log/ Electr Data Digital Dataset Type Med/Frmt Number Name r- Report: Final Well R ~ Mud Log )..ég See Notes r .k69 Induction/Resistivity I ~ Induction/Resistivity I I ¿' C ~ ~~~2665 Induction/Resistivity h C Wrd 12884 Mud Log yfg 12884 Mud Log ~~ C Pds 12885 Completion llt6'9 'Pd'S- 12885 Completion ~- Operator UNION OIL CO OF CALIFORNIA JI'c.J... /~,)__ ~'1 API No. 50-231-20022-00-00 Completion Status 1-GAS Current Status 1-GAS UIC N --~~~~ -------- ~--~_.._-,-- Samples No Directional surv~___ ~-~--~_.-. (data taken from Logs Portion of Master Well Data Maint tit Log Log Run Interval OH/ Scale Media No Start Stop CH Received Comments - u u u, 8/27/2004 5 Blu 1008 10274 Open 8/27/2004 5 Blu 1008 10274 Open 8/27/2004 DRILLING PARAMETERS . 25 B,ï~ ,e.,¡ f) 50 8388 Open 8/27/2004 Array Induction Borehole I I Compensated sonic MD \ DSN 12665 25 ~fJt ]VI) 50 8388 Open 8/27/2004 Array Induction Borehole I Compensated sonic MD DSN 12665 25 50 8388 Open 8/27/2004 Array Induction Borehole Compensated sonic MD DSN 12665 1008 10274 12/7/2004 OIL & GAS MD MUDLOG 1008 10274 12/7/2004 OIL & GAS MD MUDLOG . 9998 10018 12/7/2004 COMPLETION RECORD 9998 10018 12/7/2004 COMPLETION RECORD 5 Blu 5 Bfi I'Å Well Cores/Samples Information: Name Interval Start Stop Sent Sample Set Number Comments Received Permit to Drill 2041060 MD 10274 TVD 9000 ADDITIONAL INFORMATION Well Cored? Y ~ Chips Received? "V'"t1'r- Analysis Received? 'f<..I-N- DATA SUBMITTAL COMPLIANCE REPORT 9/11/2006 Well Name/No. HAPPY VALLEY A-7 Operator UNION OIL CO OF CALIFORNIA API No. 50-231-20022-00-00 Completion Date 8/25/2004 Completion Status 1-GAS Daily History Received? Formation Tops Comments: -~-_.~.~._-~~--- Compliance Reviewed By: ~ Date: ~(~V-·- Current Status 1-GAS UIC N ~N ~/N ---~---_.._- -_.~--- - . . . Unocal Alaska 909 W. 9th Avcnuc Anchoragc, AK 99501 Tclc: (907) 263-7889 Fax: (907) 263-7828 E-mail: oudcand@unocal.com UNOCALfiØ Debra Oudean G & G Technician Date: December 2, 2004 To: AOGCC Helen Warman 333 W. 7th Ave. Ste#]OO Anchorage, AK 9950] rmq1tI1~~"I·am ¡ WELL. I. LOGTYPE u .ISCALE~f~II~~V:DL IL~EIFILMICDIN~TES I ~."., (1 4~~~+---=~~~~ê~~~GR~~~~~~t~rl~~~t~~ETS~~*~~~~.~f~~~~ilt:~::~~~~~~~··-~~f=·=}~.H.·····~_...·~... "",1/ 1 ¡HAPPY VALLEY-5 -[SLIM CEMENT MAP TOOL [5INGH ·~·0/2012004f¡OO-418o-!111r1T·--·_·_·_···_; ;;tto"rAPPYVALLEV.' ··I~~~~~~: RECORD 225 H~O r'NcHI""4i2004T99~1' Tt -'-'1']-- --j ¡HAPPY VALLEY-7 IMD MUDLOG 2INCH I 7/14/200411008-10274 1 I 011 I . ~HAPPY VALLEY-8 !~~~:~E;~ON RECORD 2.5 2506 POWERJET ¡5INCH 18/26/200415688-6799 11 I 1 r-r ~Ù ,,\ ¡HAPPY VALLEY -8 MD MUDLOG -12 INCH !7/30/2004178-8900 1/O[1"T-- ~V1' ¡HAPPY VALLEY-8 ITVD SONIC QUAD COMBO --[2INCH.1 7/31/2004[20-8892 I 1 I o[·~-ICOMBINED-l.. ¡HAPPY VALLEY-8 MD SONIC OUlAD COMBO 12 INCH I 7131/2004120-8892 ro-n ON CD ! I ¡REEVES DATA VIEWER 'I I -,010[1 I :HAPPY VALLEY-9COMPLETION R~CORD 2.5 HSD POWERJETS 5INCHJ 11/5/200417390-8362 -111f1T HAPPY VALLEY-9 ARRAY INDUCTION /THREE-lITHO-DENSITY 21NCH 9/23/20040-8468 1 1 1 ^~j i. 1 COMPENSATED NEUTRON 1 BHC SONIC \. \ ' TVD ~\ ¡HAPpy VALLEY-9 ARRAY INDUCTION /THREE-LlTHO-DENSITY 2/5 t'\,.,\· I 1 COMPENSATED NEUTRON 1 BHC SONIC INCH ~IJ i PLATFORM EXPRESS !f ¡HAPPY VALLEY-9 I~~~FORATION RECORD 2.5 HSD 2506 PJ 6 rNCH -r11/8/20047440-78371¡--''1i t~~~~-~~~~~~:; . f~~:~ ~~~~~~-~~~f~~ ~~~~ - --~~~~~-H~¥~%1fò~iói:_391J ~.f.· ~r~~==- i 9123/2004 0-8468 COMBINED 1 0 ON CD Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. Date A'b7ftf ) í ~ STATE OF ALASKA ALAS. AND GAS CONSERVATION COMMIS. WELL COMPLETIOtr'OR RECOMPLETION RÉì'bRT AND i~Q~ OilD Gas0 Plugged 0 AbandonedD SuspendedD WAGD 1b. Well Class: 20AAC 25.105 20AAC 25.110 Development 0 Exploratory 0 No. of Completions 1 Other Service 0 Stratigraphic Test 0 5. Date Comp., Susp., or 12. Permit to Drill Number: Aband.: 8/25/04 204-106 6. Date Spudded: 13. API Number: 6/14/04 50-231-20022 7. Date TD Reached: 14. Well Name and Number: 7/14/04 HV-07 8. KB Elevation (ft): 15. Field/Pool(s): 739' 9. Plug Back Depth(MD+ TVD): 10,205'/8,934' 10. Total Depth (MD + TVD): 10,274'/9,000' 11. Depth Where SSSV Set: n/a 19. Water Depth, if Offshore: n/a feet MSL 1 a. Well Status: GINJD WINJD WDSPLD 2. Operator Name: Union Oil Company of California 3. Address: PO Box 196247, Anchorage, AK 99519 4a. Location of Well (Governmental Section): Surface: 1,319' FSL 1,190' FWL Sec. 22 T2S R13W Top of Productive Horizon: n/a Total Depth: 294' FSL 571' FEL Sec. 15 T2S R13W 4b. Location of Well (State Base Plane Coordinates): Surface: x- 228,078 y- 2,189,860 TPI: x- y- Total Depth: x- 228,800 y-2,194,072 18. Directional Survey: Yes 0 No 0 21. Logs Run: Sonic Bond Log 22. CASING WT. PER FT. 87.5# 68# 40# 26# 9.3# GRADE K-55 K-55 L-80 L-80 L-80 CASING, LINER AND CEMENTING RECORD SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE TOP BOTTOM TOP BOTTOM o 80' 0 80' o 1,008 0 1,007 o 4,331' 0 4,030' 4,128' 6,910' 3,862' 6,110' 6,726' 10,272 5,962' 8,998' 18-5/8" 13-3/8" 9-5/8" 7" 3-1/2" 23. Perforations open to Production (MD + TVD of Top and Bottom Interval, Size and Number; if none, state "none"): T-80 9,998 - 10,018 (no flow) 24. SIZE 3-1/2" 9.3# L-80 Driven 16" 12-1/4" 8-112" 6-1/8" Deep Creek UniUTyonek, Beluga 16. Property Designation: C-061588 17. Land Use Permit: n/a 20. Thickness of Permafrost: n/a CEMENTING RECORD AMOUNT PULLED 18bbls 12.8 ppg Iitecrete/52bbI15.8 ppg "G" 189bbl 12.8Iitecrete/43bbl 15.8 ppg "G" 52bbl12ppg Iitecrete/1 Obbl15.8ppg "G" 103.5bb112ppg litecrete I TUBING RECORD DEPTH SET (MD) PACKER SET (MD) 6,764' Baker ZXP @ 6,726' 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 26. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): n/a flowing Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: 8/24/2004 24 Test Period -+- 0 0 Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Press. 0 0 24-Hour Rate ..... 0 0 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". none ¡ d~. ~=~ 't... .Æ' .:r1.¡·¡.·¡;;;r- \ ./ .,,,,"ó I '. ~._; .~"""""'''.: ..~.";." ORIGINAL Form 10-407 Revised 12/2003 CONTINUED ON REVERSE Water-Bbl: o Water-Bbl: o Choke Size: IGaS-Oil Ratio: n/a n/a Oil Gravity - API (corr): n/a RBDMS BFL NOV 1 6 2004 CONrIDENTIAl ~~ 6 28 . NAME GEOLOGIC MARKERS . TVD 29. FORMATION TESTS Include and briefly su.·ze test results. List intervals tested, and attach detailed supporting da. necessary. If no tests were conducted, state "None". Tyonek Lower Tyonek 6865 9858 6,074 8,606 Testing operations summarized in daily operations reports (attached). 30. List of Attachments: Directional survey, morning report summary, schematic 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Steven Lambe 263-7637 Printed Name: T~m C. BrandenburQ __~ $"'''''0 Z:- c,/ - 7 Title: Drilling Manager Phone: 907-276-7600 Date: 11/3/2004 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for I njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 1 0-407 Revised 12/2003 CONFIDENTIAL . UNOCALe API: 50-231-20022 AOGCC: 204-106 1319'FSL,1190'FEL Sec22, T2S, R13W, S.M. RT-THF: 22.5' Tbg lift threads - 3Y." EUE 8rd Tree cxn - 2Y." Bowen cxn Production Tubinq: 3W', 9.3 ppf, L-80, EUE 8rd Mod to 6764' - Annulus loaded with fresh water (no inhibitor added) Completion - Chemical injection sidepocket mandrel at 2488' (Macco SFO-1C-I) with 1/4", 0.049" wall SS chemical injection line - Locator sub at 6731' - Baker 80-40 seal assembly 13' of 4.00" OD seals - Muleshoe at 6764' Directional Data: max hole angle = 37.4 deg at 6161' KOP = 1868' max dogleg = 3.9 deg/100' at 4713' HV-7 Actual schematic 11-2-2004 ~ ::g: .... ::8: .... · · · · · · · · · · · · · · ... ::8: .... .... ~ I PBTD = 10,205'1 TD = 10,274' . Well Name: Happy Valley #7 Field: Deep Creek Unit State: Alaska I conductor: 18%",87.5 ppf, K-55 to I 80' t. Surface Casing: 13%",68 ppf, K-55, BTC to 1008' Cmnt with 81 bbl of 12.8 ppg lead and 52 bbl of 15.8 ppg tail "G" :8: .... Intermediate Casinq: 9%", 40 ppf, L-80, BTC to 4331' Cmnt with 189 bbl of 12.8 ppg LiteCrete lead and 43 bbl of 15.8 ppg "G" tail. Drillinq Liner: 7", 26 ppf, L-80, BTC-Mod 4182' - 6910' Baker liner hanger at 4182' with ZXP liner-top packer Cmnt with 52 bbl of 12.0 ppg LiteCrete lead and 10 bbl of 15.8 ppg "G" tail. Open Perfs: T-80: 9998' - 10,018' (6 spf, 8/24/04) Isolated Perfs none Production Liner: 3Y.", 9.3 ppf, L-80, EUE 8rd Mod liner from 6726' - 10,272' Baker ZXP packer, Flexlock liner hanger & 80-40 sealbore at 6726' Cemented with 103.5 bbl of 12.0 ppg Litecrete CONFIDENTIAL Updated by: JGE >Infor~ation >Well >Directional Surveys >F.ey -~~~ . Select Well: HV7 Report Name Well Date Created Position Log HV7 11/2/2004 Well Name CURRENT STATUS API KB Surf X Surf Y (ft) (ft) (ft) Interpolate. I HVl UNKNOWN 502312002200 739 228,078 2,189,860 MD TVD SSTVD X Off YOff X Y Jne Azimuth (ft) (ft) (ft) (ft) (ft) (ft) (ft) (deg) (deg) 0 0 739 0 0 228,078 2,189,860 0.0 0 272 271 468 -1 0 228,077 2,189,860 0.6 244 443 442 297 -2 -1 228,076 2,189,859 0.4 195 626 625 114 -2 -3 228,076 2,189,857 0.7 216 811 810 -72 -4 -4 228,074 2,189,856 0.6 225 943 942 -204 -5 -5 228,073 2,189,855 0.7 224 1,024 1,023 -285 -6 -6 228,072 2,189,854 0.7 231 1,086 1,085 -347 -6 -7 228,072 2,189,853 1.0 227 1,147 1,146 -408 -7 -7 228,071 2,189,853 1.1 236 1,205 1,204 -466 -8 -7 228,070 2,189,853 0.9 285 1,267 1,266 -528 -9 -6 228,069 2,189,854 2.1 334 1,329 1,328 -590 -lD -4 228,068 2,189,856 3.3 341 1,360 1,359 -621 -11 -2 228,067 2,189,858 3.8 342 1,424 1,423 -685 -12 1 228,066 2,189,861 3.8 350 1,488 1,487 -749 -12 5 228,066 2,189,865 3.5 355 1,552 1,551 -813 -13 9 228,065 2,189,869 3.6 355 1,615 1,614 -876 -13 13 228,065 2,189,873 3.8 356 1,679 1,678 -940 -13 18 228,065 2,189,878 3.9 356 1,742 1,740 -1,002 -13 22 228,065 2,189,882 4.5 353 1,805 1,803 -1,065 -14 28 228,064 2,189,888 5.8 351 1,868 1,866 -1,128 -15 35 228,063 2,189,895 7.3 352 1,930 1,927 -1,189 -16 44 228,062 2,189,904 9.3 355 1,992 1,988 -1,250 -16 55 228,062 2,189,915 11.1 355 2,055 2,050 -1,312 -17 68 228,061 2,189,928 12.4 356 2,117 2,110 -1,372 -18 82 228,060 2,189,942 13.4 356 2,179 2,170 -1,432 -18 97 228,060 2,189,957 14.4 357 2,242 2,231 -1,493 -19 113 228,059 2,189,973 15.7 358 2,304 2,291 -1,553 -19 130 228,059 2,189,990 16.7 358 2,367 2,351 -1,613 -19 149 228,059 2,190,009 17.6 358 2,429 2,410 -1,672 -19 168 228,059 2,190,028 18.1 358 2,494 2,472 -1,734 -20 188 228,058 2,190,048 18.9 358 2,558 2,532 -1,794 -20 210 228,058 2,190,070 20.1 359 2,621 2,591 -1,853 -20 232 228,058 2,190,092 22.0 360 2,684 2,649 -1,911 -19 257 228,059 2,190,117 23.5 359 2,746 2,705 -1,967 -19 282 228,059 2,190,142 25.3 358 2,810 2,763 -2,025 -20 310 228,058 2,190,170 26.7 357 2,873 2,819 -2,081 -21 339 228,057 2,190,199 28.2 358 2,937 2,875 -2,137 -21 370 228,057 2,190,230 28.8 359 3,000 2,930 -2,192 -21 400 228,057 2,190,260 29.3 358 3,063 2,985 -2,247 -21 432 228,057 2,190,292 30.8 358 3,125 3,038 -2,300 -22 464 228,056 2,190,324 32.2 358 3,189 3,091 -2,353 -23 499 228,055 2,190,359 33.5 356 3,252 3,143 -2,405 -25 534 228,053 2,190,394 34.8 356 CONFIDENTIAL 3,316 3,196 -2,458 -26 571 228,052 2,190,431 35.8 356 3,380 3,248 -2,510 -29 608 228,049 2,190,468 35.5 356 3,505 . 3,350 -2,612 -33 681 .~ 2,190,541 35.3 355 . 3,631 3,452 -2,714 -38 753 2,190,613 35.2 355 3,756 3,555 -2,817 -43 825 228,035 2,190,685 34.9 354 3,884 3,660 -2,922 -49 897 228,029 2,190,757 34.5 354 3,948 3,713 -2,975 -52 933 228,026 2,190,793 34.3 354 4,074 3,817 -3,079 -58 1,004 228,020 2,190,864 34.1 354 4,200 3,921 -3,183 -66 1,075 228,012 2,190,935 34.4 352 4,280 3,987 -3,249 -71 1,119 228,007 2,190,979 34.3 352 4,334 4,032 -3,294 -75 1,149 228,003 2,191,009 34.2 352 4,397 4,084 -3,346 -78 1,185 228,000 2,191,045 34.5 355 4,459 4,135 -3,397 -80 1,220 227,998 2,191,080 34.8 357 4,521 4,186 -3,448 -80 1,256 227,998 2,191,116 35.9 360 4,585 4,237 -3,499 -79 1,294 227,999 2,191,154 36.0 2 4,649 4,289 -3,551 -76 1,331 228,002 2,191,191 36.0 4 4,713 4,341 -3,603 -71 1,368 228,007 2,191,228 36.0 9 4,776 4,392 -3,654 -64 1,404 228,014 2,191,264 35.6 12 4,840 4,444 -3,706 -54 1,440 228,024 2,191,300 35.5 15 4,903 4,495 -3,757 -43 1,475 228,035 2,191,335 35.6 18 4,966 4,546 -3,808 -30 1,510 228,048 2,191,370 36.2 22 5,028 4,596 -3,858 -15 1,543 228,063 2,191,403 36.4 23 5,090 4,646 -3,908 0 1,577 228,078 2,191,437 36.2 22 5,153 4,697 -3,959 13 1,611 228,091 2,191,471 36.0 22 5,216 4,748 -4,010 28 1,645 228,106 2,191,505 36.0 22 5,278 4,798 -4,060 42 1,679 228,120 2,191,539 36.1 22 5,340 4,848 -4,110 56 1,712 228,134 2,191,572 36.0 22 5,403 4,900 -4,162 70 1,746 228,148 2,191,606 35.4 22 5,465 4,950 -4,212 84 1,779 228,162 2,191,639 35.2 21 5,527 5,001 -4,263 97 1,812 228,175 2,191,672 34.9 20 5,590 5,053 -4,315 111 1,846 228,189 2,191,706 34.5 21 5,654 5,105 -4,367 125 1,880 228,203 2,191,740 35.5 21 5,718 5,157 -4,419 139 1,915 228,217 2,191,775 37.0 21 5,782 5,208 -4,470 154 1,951 228,232 2,191,811 37.3 21 5,907 5,307 -4,569 182 2,021 228,260 2,191,881 37.1 20 6,034 5,409 -4,671 210 2,091 228,288 2,191,951 36.4 20 6,161 5,511 -4,773 238 2,162 228,316 2,192,022 37.4 20 6,286 5,610 -4,872 265 2,233 228,343 2,192,093 37.3 20 6,407 5,707 -4,969 292 2,301 228,370 2,192,161 36.8 21 6,535 5,809 -5,071 321 2,371 228,399 2,192,231 36.5 21 6,662 5,911 -5,173 350 2,441 228,428 2,192,301 36.6 21 6,787 6,011 -5,273 379 2,510 228,457 2,192,370 37.0 22 6,886 6,091 -5,353 402 2,565 228,480 2,192,425 36.6 22 6,975 6,162 -5,424 423 2,613 228,501 2,192,473 36.4 22 7,102 6,265 -5,527 453 2,682 228,531 2,192,542 36.5 22 7,228 6,365 -5,627 482 2,752 228,560 2,192,612 37.0 21 7,355 6,467 -5,729 511 2,823 228,589 2,192,683 36.6 21 7,479 6,567 -5,829 538 2,891 228,616 2,192,751 36.5 20 7,603 6,666 -5,928 565 2,960 228,643 2,192,820 36.5 19 7,727 6,766 -6,028 590 3,029 228,668 2,192,889 35.8 19 7,851 6,867 -6,129 613 3,097 228,691 2,192,957 35.5 14 7,978 6,972 -6,234 631 3,167 228,709 2,193,027 34.0 13 8,106 7,078 -6,340 647 3,236 228,725 2,193,096 33.3 11 8,234 7,185 -6,447 662 3,305 228,740 2,193,165 33.1 11 8,298 7,239 -6,501 669 3,339 228,747 2,193,199 33.1 10 CONFIDENTIAL 8,361 7,292 -6,554 676 3,373 228,754 2,193,233 33.0 9 8,425 7,346 -6,608 682 3,407 228,760 2,193,267 32.4 9 8,489 7,400 -6,662 688 3,440 228,766 2,193,300 32.0 8 , 7,453 '. 8,552. -6,715 693 3,473 .71 2,193,333 31.8 7 . 8,615 7,507 -6,769 698 3,506 , 76 2,193,366 31.1 7 8,677 7,560 -6,822 703 3,537 228,781 2,193,397 30.2 7 8,740 7,615 -6,877 707 3,568 228,785 2,193,428 29.7 7 8,802 7,668 -6,930 711 3,599 228,789 2,193,459 30.9 6 8,866 7,723 -6,985 715 3,632 228,793 2,193,492 31.1 5 8,929 7,777 -7,039 719 3,664 228,797 2,193,524 31.0 5 8,993 7,832 -7,094 722 3,697 228,800 2,193,557 30.9 6 9,056 7,886 -7,148 726 3,729 228,804 2,193,589 30.3 4 9,118 7,940 -7,202 728 3,760 228,806 2,193,620 30.0 3 9,182 7,995 -7,257 731 3,792 228,809 2,193,652 29.8 4 9,245 8,050 -7,312 733 3,823 228,811 2,193,683 29.6 3 9,308 8,105 -7,367 735 3,853 228,813 2,193,713 28.0 2 9,432 8,215 -7,477 737 3,910 228,815 2,193,770 26.5 1 9,558 8,329 -7,591 739 3,965 228,817 2,193,825 25.1 360 9,687 8,447 -7,709 739 4,017 228,817 2,193,877 22.5 358 9,812 8,563 -7,825 738 4,064 228,816 2,193,924 21.7 357 9,876 8,623 -7,885 737 4,087 228,815 2,193,947 20.5 356 9,940 8,683 -7,945 736 4,109 228,814 2,193,969 19.8 356 10,002 8,741 -8,003 735 4,129 228,813 2,193,989 19.0 353 10,067 8,803 -8,065 732 4,150 228,810 2,194,010 18.0 351 10,131 8,864 -8,126 730 4,169 228,808 2,194,029 18.0 350 10,195 8,925 -8,187 726 4,189 228,804 2,194,049 17.4 349 10,221 8,949 -8,211 725 4,196 228,803 2,194,056 17.1 349 10,274 9,000 -8,262 722 4,212 228,800 2,194,072 17.1 349 CONFIDENTIAL 6/10/2004 From 0:00 6:00 20:00 6/11/2004 From 0:00 6:00 6/12/2004 From To 6:00 20:00 0:00 To 6:00 0:00 To Hours 6 14 4 Remarks Operations suspended ~ - Complete pad clean up, NNA resource development leveling area of rig foot print, spread felt and liner, prep for rig move. Level and _ smooth area for tank farm, erect Lincoln log berms, lay felt and liner, spot rain for Rent tanks. Using motor grader smoothed out most of the remainder of pad. Kuukpik has had a steady stream of trucks arriving, Received and spotted all Kuukpik camps and trailers. Operations suspended Hours Remarks Hours 0:00 0:00 24 -- 6/13/2004 From To Hours 0:.00 6/14/2004 0:00 Operation suspended _ - Kuukpik continuing to rig up, set mats for drilling module set both the lower and upper white iron for this section. Continue to haveW trucks coming in and staging. Transport mast from NNA well to pad and pin to sub base, prep to raise sub base. Unocal drilling trailer arrived was on wrong direction of trailer off loaded from trailer. Will require long bed truck to tail roll around and set. Completed berming tank farm, built loading dock apron in front of tank farm. As test equipment stored at NNA becomes accessible 18 ha~e been transporting back to HV and staging. 6 Remarks I Continue to rig up, set white iron for utility module and set components. Modify over pack drums and set in cellar burying to gravel 18" deep, cut rebar and install. Pour concrete 18" + - deep in cellar bottoms. Change out valves on water tank spot and berm in. Spot DSM camp and hook up electric. Lay liner and spot Johnson tank for HV 6 testing, load and stage test equipment. Build containment for fuel tank. Big G electric out and run cable to all units prepped as much as possible. Waiting on switch gear. Construct parking in front of camps. Spot drilling connex along with spill connex and Peak break room. Stack up all components on drilling module. -. 24 Remarks -- Continue with rig all components stacked hook up lines and electrical connections, scope up derrick. Electricians connect all camps, mud lab, and water well to new generator. Dowell staged 1 silo and blew cement to fill same, for conductor cementing job. Spot all well testing equipment, had production out to assemble with Peak support help. Flood rig water tank and check for leaks. Continue to fill water tank. Lay liner and spot pipe racks. BHI out today discussed there lash up and surface hole section requirements. Baroid mud Lady out discussed her inventory and rig up requirements. page 1 CONFIDENTIAL: last revised 11/8/2004 HV-07 morning report summary_AFE162612 From 0:00 7:30 To 7:30 14:30 Hours 7.5 7 14:30 18:45 4.25 18:45 20:45 2 20:45 0:00 3.25 - 6/15/2004 From To Hours 0:00 7:00 7 7:00 11:00 4 11:00 13:00 2 13:00 16:00 19:00 23:00 . 6/16/2004 From 0:00 1:00 5:30 7:30 -- 9:30 16:00 19:00 23:00 0:00 To 1:00 5:30 7:30 9:30 12:00 Hours 1 4.5 2 2 2.5 I Remarks Acceptrig at midnight 00:00 HRS. Mix mud, work on housekeeping Start to PU BHA, spot trailer with 16" conductor, continue to mix mud, unload trucks and stage mud, BHI out and stage ~it Start rotating RPM 50 with 90 GPM building to 100 RPM and 100 GPM, taking returns in cellar with vacuum truck and attempting to blow back across shaker screens. Had problems with vacuum truck it would not build any pressure to blow off, PSV's leaking. Shut down to RU supersucker and used trash pump to bow across shaker. (NOTE very hard drilling for first 35' then it smoothed out some. Appeared to be fresh ground gravel coming across the shaker ITD' at 86' RKB, or 53' from bottom. of cellar. C&C hole vacuum out cellar lay down 1 joint of 5" HWDP, and stand back 1 stand consisting of 1 joint 5" HWDP and 1 8" drill collar ~ PU and RIH with 16" conductor pipe welding together set on bottom and using level had conductor chained in upright level positio~ . Remarks Continue to work conductor and level, RU 2" PVC and RIH beside the 16" conductor, RU Dowell and pump 34 BBlS cement with 2% calcium chloride for rapid set, taking returns in cellar. Figured excess at 50% over had approximately 4 BBl returns with minimal u- tubing. cleaned cellar and installed landing ring, with welder welding out. Skid rig to top of HV #7 ri~g up-ª-HA to drill conductor Pre spud meeting RIH with 26" mill tooth bit rotate at 58 RPM go GPM pump rate taking returns into cellar. Made approximately 2' to 2.5' of footage and drilling became very hard. Entire drilling assembly jumping. Noticed drill collars not centered in cellar. Stopped drilling PU l' stopped pump and vacuumed out cellar. Found BHA drilled down approximately 2.5' cement guide is abut 14" thick. The bit was 3 below the guide and has hit something hard and walked over to where the drill collar was rubbing against the concrete guide. Picked up bit cleaned and washed cellar found large rock that bit has been spinning on and caused it to kick off. looking at 3 ~ifferent options. lay down 26" bit and bit sub, lay down 1 joint of 5" HWDP. PU and MU 12 1/4" mill tooth bit along with bit sub Using 90# jack hammer bust up and remove rock, had several very large pieces break up and a multitude of smaller chunks. After removing rock. 4 cellar at least 1.5' deeper. Welder laying out and cutting material for guides. 1 Dowell Schlumberger mixing cement in cellar to fill hole and give a flat base to start from when attempting to drill again Remarks -- Dowell Schlumberger mixing cement in cellar to fill hole and give a flat base to start from when attempting to drill again Remove all remaining rock from cellar, drop bit and collar to cellar and fab guide braces to white iron and cellar walls. D~ill 12.25" pilot hole to 80' RKB. Rig down centralizing guides; POH with 12.25" bit. PU 26" bit; RIH; Rig up centralizing guides. HV-07 morning report summary_AFE162612 page 2 CONFIDENTIAL: last revised 11/8/2004 12:00 15:30 16:30 18:30 20:30 --- 22:30 15:30 16:30 18:30 20:30 22:30 0:00 ~7/2010lJ4 . From To 0:00 5:30 5:30 13:30 13:30 18:00 18:00 20:00 20:00 23:30 -- 23:30 0:00 6/18/2004 -- 3.5 1 2 2 2 1.5 I Drill 26" OH to 80' RKB; Bracing welds broke on lower guide at 63'; Reweld before TO of 26" hole. Short trip to check for fill; none. POH with 26" bit; lD 1 JT HWDP; Stand back HW and DC PU 18.625" csg, Dress for weld prep,B'H and weld. Dowell Schlumberger pump cement taking returns in cellar. Good cement returns!!! 39 BBls of 15.8 ppg cmt. Clean Cellar demobe schlumberger Hours 6 2 1 2.5 2.5 4.5 0.5 1 --- From 0:00 6:00 8:00 To 6:00 8:00 9:00 11:30 14:00 18:30 19:00 20:00 Hours 5.5 8 4.5 2 3.5 0.5 Remarks Assist welder; Center RT over 18.625" csg" MU 16" BHA Drill to 343' C&C. POH. PU remaining BHA Drlg 16" OH e From 0:00 6:00 8:00 9:00 11:30 14:00 18:30 19:00 20:00 22:00 22:30 -~~.- 6/19/2004 Remarks Cont Drilling 16" hole to 1,008 ____ Cir & Cond mud + Pump around high Vis Sweep + Pump around Nut Plug Sweep Showed very close to gauge hole Pump out of hole to 320' (BHA) Stand back BHA - lay down Mtr & Bit Rig to run 13 3/8" casing RIH with 1010' 24jnts + 23' pup - Make up cir sewdge in last Joint picked up Wash last 20' to btm - Hang casing at a shoe depth of 1,008 Casing Measurements Rig up Dowell Cement Head - Pre Job Safety Meeting for Cementing With 133/8" shoe hung at 1 ,008 Casing measurements cement with 81 bbl (456cf, 231sks) Class "G" mixed to 12.8ppg - Followed by 52bbl (290cf, 248sks) Class "G" mixed to 15.8ppg - Displace with 144bbl - Bump plug at 21 :45hrs - Good 12.8ppg cement retue 22:: I o~s _0 2 tosurrace Bump plug with 1 ,OOOpsi - Open up to Dowell and pressure up to 2,500 for casing press test shut in and chart pressure for 30m¡¡::¡-- 22:30 0.5 (Good Test) _ 0:00 1.5 WOC - Clean Rig Floor - Working to get ready for Nipple up - Drill Support working to clean up Cuttings pit To Hours Remarks 6:00 6 Cont WOC - Working on BOP Stack Up - Working on Mud System 8:00 2 Release 133/8" casing - Rig welder for Rough Cuts - Suck out 18 5/8& 13 5/8 - Set out Rotary 9:00 1 Cut off 18 5/8" conductor - layout same HV-07 morning report summary..AFE162612 page 3 CONFIDENTIAL: last revised 11/8/2004 9:00 10:00 10:00 10:30 10:30 12:30 12:30 17:30 -~ 17:30 0:00 6/20/2004 From To 0:00 3:30 3:30 4:30 4:30 6:00 6:00 12:00 13:00 17:30 20:30 21:00 12:00 "-- 13:00 17:30 20:30 21:00 21:30 Hours 3.5 1 1.5 6 1 4.5 3 0.5 0.5 21:30 23:30 2 ~- 23:30 0:00 0.5 6/21/2004 From To Hours 0:00 1:00 1 1:00 2:30 1.5 - 2:30 4:00 1.5 4:00 4:30 0.5 4:30 0:00 19.5 6/22/2004 Cut off 13 3/8" 39" below Ground Level - This will put Top of tubing head at ground level - Lay out 13 3/8" - Pick up Braden Head and 1 ~~~ . . 0.5 Set Rotary - Prejob safety meeting on use of Hothead and wèlding 'on Starting Head _ 2 ~reheat with Hot Head and ck Temp - Weld out Starting Head (2 Welders) I Wrap Wellhead in isolation and allow to cool - Working on Nipple up items while wait on Starting Head to cool - Unwrapped wellhead . 5 when t~mp below 250 _ 6.5 Stack Up BOP - Rented Hyd torque wrench from NAD - Need to Get Kuukpik to get their ow~ Remarks Nipple Up BOP - Choke & Kill Lil1es & Valves Hook Up Koomey Hose & Function Test - Hook Up Bell Nipple - Change Bum Rams to 9 5/8" Set in Rotary - Pick up 9 5/8" Test Joint - Shell test stack - One leaking flange . Pressure test Btm Rams on 9 5/8" casing to 250psi low 2,500psi high - Pull 9 5/8" & Rig up 4" test Joint - Pressure test on 4" DP Upper Pipe Rams - Annular preventer - Choke line, Hcr, Choke line manual valve, Kill Line & Valves - Choke manifold & all Valves - Top Drive Safety valves - Inside BOP & Rig Floor safety Valve to 250psi Low & 2,500psi High AOGCC witness Pull Test Plug & Set wear Bushing ~ Make up 12 1/4" Drilling assembly (Picked up "DD" tongs to make up 6 5/8" connection Install New Bell Nipple & Catch Can Lubricate Rig ~ Cont Picking up BHA - While picking up 5" HW a 12# sledge Hammer was dropped in the hole POH slow to retrieve Hammer - When Hammer at Btm Pipe Rams open doors and tied on to same - Retrieve Hammer Complete Cont RIH picking up BHA Remarks Cont Trip in hole to 600' - Shell test BOP stack against casing to 250psi low 2,500psi high to test where we had opened Door tes.-- OK Cont RltJ & tag at 960 ~ Clean out Shoe Track FIC at 964 & Shoe at 1,008 - Drill 20' of new hole to 1,028 Perform LOT to 450psi over 8.0ppg for a 17.4mwe at 1,008 TVD I Pre Job safety Meeting - Directionally Drill from 1,028 to 2,360 at 24:00hrs -- From 0:00 10:30 To 10:30 12:00 HourslRemarks 10.5 Continued directional drilling from 2,360' to 2,866'. ~ _ 1.5 Made wiper trip from 2,866' tom 2,100' pumping out at 650 gpm @ 90 rpm. PU wt - 68K, SO wt - 60K HV-07 morning report summary_AFE162612 page 4 CONFIDENTIAL: last revised 11/8/2004 12:00 ----.!2:30 I 12:30 13:30 -~ 13:30 0:00 ~- 6/23/2004 From 0:00 23:30 To 23:30 0:00 0.5 1 10.5 Circ & cond mud. TIH to 2,866'. --- Directional drilled from 2,866' to 3,265'. APIG - 37.71 hr ART - 5.5 hrs AST - 9.4 hrs Survey @ 3,189' MD, 33.47 degrees, 356.2 Azimuth @ 3,091' TVD -~ Hours Remarks 23.5 Continued directional drilling from 3,265 to 4,341'. TD @ 23:30 hrs. 0.5 Circ & cond mud PU wt - 82K, SO wt - 68K APIG - 44.8 ft I hr ART - 17.5 hrs AST - 1 .4 hrs Survey @ TD (4,341' MD) 4,038' TVD, 34.28 degrees with 351.5 Azimuth. I - Hours 1 5 4 0.5 1 2.5 1.5 3.5 0.5 2.5 2 To Hours ---:¡:OO ~ 1 1 :30 0.5 10:00 8.5 11:30 1.5 . 6/24/2004 From To ~-~- 0:00 1 :00 1 :00 6:00 6:00 10:00 10:00 10:30 10:30 11:30 11:30 14:00 ~~.. 14:00 15:30 15:30 19:00 19:00 19:30 19:30 22:00 22:00 0:00 6/25/2004 From 0:00 1:00 1:30 ~-- 10:00 ~-- Remarks Pumped sweep. Circulated around. Pumped out of hole and made wiper trip from 4,341'-3,059'. Hole packing off. Circ & Cond mud. Back reamed from 3,059'-1,500'. CBU Serviced rig. Circ hole clean. RIH and tagged fill @ 4,297'. Washed down to 4,341'. Circ & Cond mud. Pumped 45 bbls sweep follo"",ed by 18 bbls Walnut LCM. POOH to shoe. Monitored well. No flow. -- LD stabilizer, mud motor and bit. Cleaned rig floor. Rigged up Weatherford casing equipment. -. -- -- Remarks Held PJSM-.:-.Iested shoe for holding___ _ Ran shoe and float equipment. Baker locked ?ame. Checked floats. Ran 1 o~ jts of 9-5/8", 40# L-80 ~asing BTC. Washed down jt # 104. Made up hanger and landed same. Shoe at 4,331'. PU wt -135K, SO wt - 105K. page 5 CONFIDENTIAL: last revised 1118/2004 HV-07 morning report summarLAFE162612 11:30 12:30 1 12:30 15:30 3 15:30 16:30 1 16:30 18:30 2 18:30 19:30 1 19:30 0:00 4.5 - 6/26/2004 .-- From To Hours 0:00 4:00 4 4:00 6:00 2 -- 6:00 7:00 1 7:00 9:00 2 9:00 16:00 7 16:00 21:30 5.5 21:30 23:00 1.5 23:00 0:00 1 _.~- 6/27/2004 From To Hours 0:00 3:00 3 3:00 8:00 5 8:00 8:30 0.5 ~-- 8:30 9:30 1 -- 9:30 10:30 1 - 10:30 11:30 1 11:30 12:30 1 12:30 14:30 2 14:30 0:00 9.5 ~_..- 6/28/2004 I RU Schlumberger cement head. Held PJSM. Pumped 40 bbls mud push followed by 189 bbls Lead cement @ 12.8 ppg followed by 43 bbls Tail cement @ 15.8 ppg. Dropped plug and displaced with 322 bbls 9.2 ppg WBM. Bumped plug with 4,500 psi. Tested casing to 4,500 psi for 30 minutes. Charted same. Bled off pressure and tested floats. Rigged down Schlumberger cement equipment. _ LD landing jt. Changed elevators. Removed bail extensions. Installed pack-off and tested same to 2,000 psi for 15 minutes. Broke gown remaining BHA. Cleaning pits and changing liners in pumps. Remarks Continued changing liners in pumps, cleaning pits. _ Removed choke and kill line, flow line and bell nipple. Lift stack. !3emoved spacer spool. NU spacer spool and tubing spool. NU BOP stack. Hooked up Koomey lines. Rigged up bell nipple. Landed testjt. Tested BOPs to 250/4,500 psi. Installed wear bushing. Bermed up rig floor for OBM. Picking up BHA # 4. -. . Remarks Continued PU BHA #4. TIH with same while PU and rabbiting 4" DP. Tagged @ 4,243'. Serviced rig. Siliconed hurculite around rotary table to prepare for OBM. Held PJSM. Displaced 9.2 ppg WBM with 9.2 ppg OBM. Cleaned under shakers. Filled pits with OBM. ___ Circ & Cond mud. PU wt - 70K, SO wt - 64K _ ., Drilled out float collar, shoe track and shoe to 4,351'. Performed FIT to 12.5 ppg EMW. Pumped 1.2 bbls for FIT and recovered 1 bbl. Directional drilled from 4,351' to 4,70Q'. PU wt - 80K, SO wt - 66K, RT wt - 70 APIG - 19.0' I hr ART - 1 .2 hrs AST - 4.8 hrs Survey @ 4,713' MD, 35.95 degrees, 8.5 Azimuth @ 4,341' TVD -- HV-07 morning report summary_AFE162612 page 6 CONFIDENTIAL: last revised 11/8/2004 From To Hours 0:00 14:00 14 14:00 18:30 4.5 18:30 19:00 0.5 19:00 20:30 1.5 20:30 0:00 3.5 --~--- 6/29/2004 ------.£I:omr ~ ~:~~ ~ ITo Hours 0:00 2:00 2 ---- - 2:00 3:00 1 3:00 18:30 20:00 20:30 21:15 18:30 20:00 20:30 21:15 0:00 6/30/2004 Started cutting back MW in pit system to 8.9 ppg. Capacity in pit system limited ability to cut MW. Performed job in three stages. 15.5 Displaced 9.2 ppg with 8.9 ppg OBM with 3# I bbl Steel seal and 2.5# I bbl Calcium Carbonate LCM. Hole taking 1/4 BPH rate static. 1.5 Break circ. 2bPITl,3 bpm, 6 bpm, walk up to· drilling rate 460 gpm, @ 5,510' No losses 0.5 Loss Swivel packingj:Jreak out top drive install head pin. Circ, mud around and monitor losses 2 bblloss (shakers) 0.75 Monitor well static. Trip in Hole to 5,896' 2.75 DrilLaheadfl5,896' - T 16,145' APIG = 90.5' Mixing while drilling baro-fiber, Steel seal, Baro-carb 50 @ 1 # per bbl. Rate while Drilling. Remarks __ Directional drilled from 4,700' to 5,481' Rig generator went down due to voltage regulator. Directional drilled at reduced pump rate from 5,481 to 5,687'. CBU with carbide sweep. Serviced ri9 Directional drilled from 5,687' to 5,896' Began losing mud @ max rate of 200 BPH. Spotted 25 bbls Barafibe pill @ 10#/bbl. PU to 5,508' to monitor well. Installed TIW valve. Changed out swivel packing. APIG - 49.8' I hr ART - 4.5 hrs AST - 7.8 hrs Survey @ 5,028 MD, 37.27 degrees, 20.80 azimuth @ 5208' TVD ~- . -- Remarks Filled well. Fluid loss in 2.5 hrs = 7.4 bbls (2.9 BPH rate). Monitored well. Fluid loss = .8 BPH. From To ~-----O:~30 3:30 I 4:00 4:00 5:30 5:30 9:30 9:30 11 :30 11:30 15:00 15:00 16:30 ~- 16:30 17:30 --. Hours Remarks 3.5 Drill ahead F/6, 145 ' - T I 6,453' , APIG = 104 ' 0.5 Stop monitor slow pu~ps Hole staying static at 2bbls A minute calculated losses 120 bbls a hour. 1.5 Loss 45 bbls 10min. Pull out of hole no returns, tight hole F/6462 T/6320 25 k over pull Pull up to 6106' work pipe and build volume. 4 Building mud volume, While discussing options with office. Decision made to pump Gunk pill. 2 Pull out of hole T I 5,704' to pump gunk pill Circ, (I"ig up to mix gunk pill with Sclumberger) 3.5 Monitor well, Build volume, mix gunk_pill,jlVork pipe, Rig up to work pipe while pumping gunk pill WI Sclumberger Held PJSM. Tested cement lines to 3,000 psi. Pumped 5 bbls water followed by 50 bbls gunk pill followed by 5 bbls water down DP. Displaced DP with 66 bbls 8.9 ppg OBM @ 1-2 bpm rate in conjunction with rig pumping down annulus 1-2 bpm. DP max pressure 1.5 during displacement was 1,419 psi then broke down to +1-900 psi. 1 Pull out of hole F I 5704' T/5,420' Tight hole page 7 CONFIDENTIAL: last revised 11/8/2004 HV-07 morning report summary_AFE162612 17:30 22:00 4.5 22:00 23:00 1 23:00 0:00 1 --- 7/1/2004 From To Hours 0:00 6:00 6 6:00 7:00 1 7:00 7:30 0.5 7:30 8:30 1 8:30 14:00 5.5 --- 14:00 17:00 3 -- 17:00 19:00 2 -- 19:00 21:30 2.5 21:30 0:00 2.5 -- 7/2/2004 Circ, Condition, Build Volume circ 820 bbls @ 5269', Pull stand circ, 500 bbls @ 5206', Pull Stand circ. 480 bbls.@ 5140' Trip in Hole T 15,644' Taking wt. 5k-8k Kelly up Circ down pumped 400 bbls Gunk returns at Btms up. 310 bbls. Circ & Ream T 15,740' Stage in hole Circ, out gunk pill Remarks Circ, & Ream in Hole FI 5,740 - TI 6,462' Shakers blinding off change out screens. Drilled from 6,462'-6,529'. Hole taking fluid at +1-170 BPH. Pumped 27 bbl LCM pill displacing with 90 bbls QBM @ 8.9 ppg. POOH from 6,529'-6,278'. Tight spot from 6,462'-6,529'. - Monitored well while building mud volume. ·POOH to 6,215' and reciprocated DP. Hole taking from 35 BPH rate to 3.6 BPH rate. POOH from 6,215'-4,829'. Static losses 6 bph POOH Hole swabbing--ªack ream F/4,829" to Shoe 4331' Flow Check Static losses 13 bph._ POOH @ 1,635' Static losses 0 POOH BHA an~ LID BHA # 4 (Bit Balled W I Gunk) . --- From To 0:00 1:00 1:00 3:30 3:30 6:30 6:30 9:00 - 9:00 11:00 11:00 12:30 12:30 14:00 14:00 19:00 - 19:00 21:00 21:00 0:00 Hours 1 2.5 3 2.5 2 1.5 7/3/2004 1.5 Remarks LID MWD, mud motor and PDC bit. M I U BHA # 5 Clean flo~rom wet Trip Fill pipe @ 1181' T.I.H. with BHA #5 to 4,300'. Slip and cut drill line. Building mud volume and pills. TIH from 4,300' - 6,364'~illed DP with 20 bbls. Circ and reamed staged up pump rates to bottom @ 175/225/325 gpm MW in 8.7,}AW out 8.7. No loss. Showed 4 bbl gain. Checked flow. Well flowing. SI well. 17 psi on annulus. Built to 22 psi in 20 minutes. Opened well. CBU with equal ECD's of 8.9 ppg MW. No gas during BU. TIH 6,364' to 6,529'. Drilled from 6,529' to 6,603'. Began losing mud. Pumped 50#/bbl pill, Drilled to 6,610'. Spotted pill on bottom. PU to 6,562'. Losing mud while pumping. Shut down pumps. Well static. Building surface volume and LCM. Drilled from 6,610' to 6,764'. Losing mud while drilling. Pumped 80# I bbl pill. Continued drilling and losing mud. Shut down due to low mud volume. --- Total daily Mud losses - 625 bbls. . 5 2 3 From To Hours Remarks Build mud volume. Drilled down to 6,772'. Spotted 25 bbls pill @ 60#/bbl. Worked and freed pipe. Pulled 3 stands off bottom. Lost 0:00 5:00 5 .125 bbls. HV-07 morning report summary_AFE162612 page 8 CONFIDENTIAL: last revised 11/8/2004 5:00 7:30 2.5 7:30 9:30 2 9:30 12:30 3 12:30 13:30 1 13:30 15:30 2 15:30 16:00 0.5 16:00 17:30 1.5 17:30 20:30 3 --- 20:30 22:30 2 22:30 0:00 1.5 7/4/2004 From To 0:00 1:00 1:00 2:00 2:00 5:00 5:00 8:00 ---~ 8:00 10:00 10:00 11:00 11:00 16:00 16:00 19:30 -- 19:30 0:00 7/5/2004 From To 0:00 1:00 1:00 4:30 -_.._~ 4:30 5:30 5:30 6:00 6:00 8:30 8:30 10:30 . Building mud and monitoring well. Well taking from 7.4 bbls per hr down to .8 bbls per hr. RIH and dry tagged @ 6,763' (9' off bottom). POOH & monitored well @ 6,643'. Monitored well while building mud. Rigged up Schlumberger cement unit. Held PJSM. Pressure tested lines to 3,000 psi. Took on OBM @ Schlumberger. Pumped 5 bbls water-spacer followed by 35 bbls Gunk pill (140#/bbl) followed by 5 bbls water spacer with cement unit Displaced to end of tubing with OBM @ 1.5 bpm. Pumped down annulus @ 1.5 bpm in conjunction with cement unit. Pressure held @ 330 psi after pump was shut-down. Bled to 0 psi. 6bbl ret~__ Pull out of hole 3 stand~ F/6339' TI 6224' and reciprocated DP while monitoring well. Well static. Build Volume and monitor Well ----.- - Circ. Well at drill rate Monitor losses -~- Attempt to ream in hole to Drill out GUNK no returns loss 32 bbls Swabbing and pushing fluid away. @ 6,300' Pump out of hole to shoe and try to unball BHA. -.:ote: Received appr~val for BOPE test extension unti~~liner is cemented from Mr. John Spaulding with the AOGCC on 7/3/~ Hours Remarks -- 1 Pumping Out Hole filling pipe T .I 5536' Regained Circ. Pull 3 more stands taking Calculated Fill. 1 Test Hole For Losses ~rill rate, \Jo Losses, TIH , Test Hole For Losses @ _6,000', Hours 1 3.5 1 0.5 2.5 3 3 2 TIH T 16,300' Test for losses Circ, and attempted to Ream to 6,772' gunk Returns @ 6,400' and reamed to 6,608'. Lost returns. ~OOH from 6,608'-6,302'. Monitored well. Static. Mixed Gunk pill. Held PJSM for pumping gunk pill. RU Schlumberger lines & tested to 3,500 psi. Pumped 5 bbls water spacer followed by 40 bbls Gunk pill followed by 5 bbl water spacer. Displaced with 74 bbls 8.5 ppg OBM while pumping in conjunction down backside. __ POOH from 6,361' to 9-5/8" casing shoe. Swabbing while POOH. Unable to establish returns. Rotated pipe and pumped @ 411 gpm with 1 ,450 psi. TIH and tested for drill rates with @~47~' & 6,424'.~eceived gunk ~uring bottoms up @ 6,424'. Washed and reamed to 6,637'. Staged in hole. CBU as needed to minimize losses. 1 5 3.5 4.5 -- 2 Remarks Washed and reamed to 6,772'. Staged in hole. CBU as needed to minimize losses. Drlg F/6, 772' - T 16,915' MD 6,110' TVD 40.9' APIG. ABPF = 2.3 Circ. Btms Up Pulled 2 stands. Well flowing b~ck. Ballooning effect. _ Flowed back 42 bbls. B!H to TD & CBU. No gas, PullE:d up 2 stands. Well flowed back 23 bbls. Well stopped flowin~ Pumped 40 bbl LCM pill @ 60#/bbl consisting of Steelseal, Baracarb 50, Walnut, Barafiber, Mica. Displaced same. POOH to 6,165'. Swabbing while POOH. ~- page 9 CONFIDENTIAL: last revised 11/8/2004 HV-07 morning report summaryßFE162612 10:30 16:00 22:00 --~ 22:30 7/6/2004 --- From 0:00 2:00 3:00 10:30 12:00 15:00 16:00 17:30 20:00 22:00 7/7/2004 From 0:00 0:30 2:15 5:00 5:30 6:00 7:00 7:30 10:30 13:30 ---- 14:30 15:00 --- 16:00 Hours Remarks --- 0.5 ~~SM with ~arties prior to cementing _ Drop ball, Pressure up to 1900 PSI set liner slack off to 30M pressure up to 3050 PSI PU to 64 M liner released, bleed off pressure 1.75 and pressured to 3400 PSI blow ball seat at 02:00 HRS, slack off to 50K, PT lines_to 5000 PSI Pump 35 BBlS of mud push followed by 52 BBlS lead cement at 12 PPG, followed by 10 BBl of Tail slurry at 15.8 PPG, drop dart and chased with 143.4 BBl of OBM bumped plug at 2969 strokes. Cement in place at 03: 15 HRS. pressured up to 1500 Psi bled. 5:00 2.75 pressure floats~~ Set packer pressured up 10200 PSI and unstung, CBU _ 5:30 0.5 Pres~ured drill string_to 200 PSI and unsting from hanger 6:00 0.5 Condition and circulate mud at liner lap 7:00 1 RD cement head and hoses clean floors 7:30 0.5 Pull 2 stands, make breaks on cement head 10:30 3 Circulate m~d across shakers shaking out lCM 13:30 3 POOH to 5" HWDP --- --~ 14:30 _-L_~POOH and lD 5" HWDP cleaning as best as possible (WOTCO Pipe to be delivered to Star) 15:00 0.5 lay down running tools for liner hanger __ 16:00 _ 1 Cl1ange bottom rams to 3.5 and change out saver sub _ 23:00 7 PU test joint and pull wear ring and set test plug test BOP 250 I 4500 16:00 22:00 22:30 0:00 To 2:00 3:00 10:30 12:00 15:00 16:00 17:30 20:00 22:00 0:00 To 0:30 2:15 5.5 ~Pumped out of hole to casing. Monitored holè. No flow. 6 POOH and lD BHA. (Total TOOH 11.5 hrs.) 0.5 Cleaned off rig floor. 1.5 MU test jt. Pulled wear bushing, set test plug. Changing out bottom rams to 7" Note: Received approval for BOPE test extension until 7" liner is cemented from Mr. John Spaulding with the AOGCC on 7/3/04. - -- Hours Remarks 2 Changing out bottom rams to 7". & test 4,500psi. Install wear ring. Total of 3.5 hrs. 1 RIU to run 7" liner. PJSM 7.5 Run 7" liner 66 joints of 7" 26# l-80 BTC 1.5 MU liner hanger a~unning tools, RD weather ford and hang tongs 3 Run casing liner on DP from 2737' 1 MU Ceme!1t head on 4" DP and lay down same 1.5 CBU at shoe 4331' monitor well 2.5 Run liner on 4" DP from 4331' to 5760' breaking circulation every 10 stands 2 CBU at 5760' 2 Continue to run liner from 5760' to 6910', Washing down from 6634' to 6910' . -- page 10 CONFIDENTIAL: last revised 11/8/2004 HV-07 morning report summary_AFE162612 23:00 23:30 0.5 23:30 0:00 0.5 ---"-~ 7/8/2004 From To Hours 0:00 , 3:00 3 3:00 7:00 4 7:00 11:00 4 11:00 11:30 0.5 11:30 13:00 1.5 13:00 13:30 0.5 13:30 14:00 0.5 14:00 18:00 4 -- 18:00 22:30 4.5 22:30 0:00 1.5 -- 0:00 1:00 1 7/9/2004 From To Hours 0:00 5:00 5 --- 5:00 6:00 1 6:00 7:00 1 7:00 7:30 0.5 7:30 8:00 0.5 8:00 10:00 10:00 11:00 11:00 11:30 Pressure up 9 5/8" casing to 4500 PSI for 30 minutes testing liner lap held pressure for 30 minutes with 65 PSI pressure drop. Set wear ring, lay down test joint, rig up to pick up BHA Remarks -- PU BHA RIH Wash down and survey 6459',6587',6713',6839', Drill landing collar at 6828' Attempt to do 1000 PSI casing test for base line on FIT, Pumping at 1/4 bbl per minute pressured up to 500 PSI and would not pressure up any more discontinued pumping after 1.5 BBls Contact superintendent and discuss options I Service rig Work on top drive . Drill shoe and rat hole to 6915', Drill from 6915' to 6925' new hole for FIT Test SustC!Ïn losses of 2? to 40 BBlS per hou~, pull into shoe and monitor loses, slow pump, circulate and mix 25# BBl lCM Pill POOH to top of liner at 3965' spotting pill on bottom POOH the remaining way standin~back BHA in derrick. Remove bit PU 7" EZSV retainer, setting tool and XO, MU on DP RIH with retainer assembly Remarks Continue to RIH with 7" EZSV to top of liner at 4185' taking care not to hang liner top. Went through without a bobble. Continue in 7" casing to 6268' PU _18 Joints of 4" HT~8 DP, RIH to 6810 and set retainer _ Batch up an.<!Frep to cement squeeze liner RU pump in sub with pup j~int along with floor valve, and break circulation Test Drill pipe along with retainer to 1500 PSI, RU cement lines. PU and unsUng from retainer _ a PJSM with all parties involved discuss nuts and bolts of squeeze job -. Test cement lines to 3000 PSI, Pump 5 BBI H20, Followed by 30 BBl Class G cement, During this time gradually bringing up and maintaining 1100 PSI on annulus. Changed over to rig pump and pumped 28 BBlS 8.7 PPG OBM. Stabbed back into retainer and pumped an additional 25 BBlS of OBM, shut down and monitored pressure for 15 minutes, went to 0 PSI, pumped an additional 7.5 BBl with 260 PSI max pressure, SO and monitored pressure for 15 minutes, pressure fell to 20 PSI, pumped 7.5 BBlS OBM with 2 max PSI 350, shut in and monitored for 30 minutes pressure fell to 98 PSI. __~_ Pump 15 BBls OBM to clean and over displace shoe track, Max PSI 450 Psi and fell back 125 Psi after pumping. PU out of retainer 1 and reverse circulate 1.5 BU, to clean DP, sting into retainer and pump 2 bbls to establish circulation 0.5 PJSM with all parties involved discuss nuts and bolts of squeeze job HV-07 morning report summary_AFE162612 page 11 CONFIDENTIAL: last revised 11/8/2004 11:30 13:30 13:30 14:00 14:00 14:30 14:30 18:00 18:00 18:30 18:30 20:30 20:30 23:00 23:00 0:00 -- 7/10/2004 From To 0:00 1:30 1:30 2:00 -~--- 2:00 7:30 7:30 10:00 10:00 10:30 10:30 13:00 13:00 13:30 13:30 -- 15:00 15:00 15:30 15:30 18:00 18:00 19:30 21:00 -- 23:30 19:30 21:00 23:30 0:00 Pump 5 BBI H20, Followed by 30 BBL Class G cement, During this time gradually bringing up and maintaining 1100 PSI on annulus. Changed over to rig pump and pumped 28 BBLS 8.7 PPG OBM. Stabbed back into retainer and pumped an additional 25 BBLS of OBM max PSI 396, shut down and monitored pressure for 15 minutes, went to 10 PSI, pumped an additional 10 BBL with 330 PSI max pressure, SD and monitored pressure for 15 minutes, pressure fell to 95 PSI, pumped 5 BBLS OBM with max PSI 395, shut in and monitored for 15 minutes pressure fell to 125 PSI. Pumped 2 BBLS max PSI 398, SI and monitored pressure for 15 minutes, 2 pressure fell to 134 PSI 0.5 PU out of retainer and reverse circulate 2 BU had approximately 1 BBL of cement returns 0.5 RD Schlumberger, break off and lay down pump in sub and pup joint 3.5 POOH from 68~to 3945' pump dry job 0.5 Service rig 2 POOH from 3945', lay down retainer stinger. 2.5 Pick up Mill tooth bit and BHA to drill out retainer 1 RIH . Remarks RIH to 4185 ' top of liner lap entered casing with no bubbles ~H tag top of retainer @ 6798'89M UW and RW, 85M DW Mill on retainer, using varied weights and rotary speeds, when approximately l' hole started to experience significant losses Worked through retainer, moved mud from active pits to RFR #2 to make room for mud when changing over from OBM to WB~ 2.5 Monitored hole had 42 BBLS of returns due to ballooning 0.5 Drill down to 69451 experiencing 100 BBL per hour losses _ Make up pill and spot 20 BBL below bit 40 PPG LCM, pumped pill and spotted at 2 BBM rate with no losses. Increased pump rate to 4BPM and rotating at 80 RPM, and had losses at 112 BPM rate. SD and monitored well flow back in 30 minutes had 22 BBL flow 2~ I back due to ballooning __ 0.5 Pump base oil spacer 20 BBL Hours 1.5 0.5 5.5 1.5 _ Continue to move OBM to RFR, clean pits, build WB volume, and start to build bottom kil pill volume for storage in RFR tank. 0.5 Have PJ~M with all parties to define rolls and responsibilities in mud change over __ Purge suction and gun lines, start to pump WBM (H20 Gell) at 6 BPM rate with TDS rotating 40 RPM and when mud was at bit 2.5 increased RPM to 80, Completed change over, had some interface but not bad. . 1.5 Pick up on drill pipe and slacked off twice to simulate making connection, circulate BU to see if any gas was swabbed in. (None)_ 1.5 Contin_ue to clean pits and move fluid 2.5 Pull 2 stands mud at connections very thick and appeared to be foamy, SD to C&CM 0.5 Pump dry job and start to pull pipe -..,--- -+---- To I Hours Remarks 7/11/2004 From HV-07 morning report summary_AFE162612 page 12 CONFIDENTIAL: last revised 11/8/2004 1:30 3:30 2 Slide from 7531 to 75 -~- 3:30 8:30 5 Rotate from 7555 to 7 8:30 9:00 0.5 Slide from 7656 to 76 --- ---'=-- 9:00 10:30 1.5 Rotate from 7666 to 7 10:30 12:30 2 Slide from 7778 to 781 12:30 14:00 1.5 Rotate from 7813 to 8 14:00 15:30 ~ 1.5 Rotate from 8029 to 8 15:30 18:00 2.5 Slide from 8093 to 811 18:00 21:00 3 Rotate from 8119 to 8 21:00 23:00 2 Slide from 8478 to 850 23:00 0:00 1 Rotate from 8504 to 8 - - 7/13/2004 "- -" - From To Hours Remarks 0:00 1:48 1.8 Drill fl 8583' - t/ 8736' 1:48 5:42 3.9 Slide fl 8736' - t/ 8769' 5:42 5:54 0.2 Drill fl 8769' - t/ 8791' 5:54 8:48 2.9 Slide f/8791' - t/8816' 8:48 17:06 8.3 Drill fl 8816' - t/9296' --- 17:06 19:54 2.8 Slide fl 9296' - t/ 9326' - 19:54 0:00 4.1 Circ hole clean, Drill fl Fluid loses has slowe APIG = 35 fph . I .7/14/2004 0 4:00 0 6:00 0 7:00 - 0 7:30 0 14:00 0 15:30 0 18:30 0 19:00 0 0:00 - 004 0:0 4:0 6:0 7:0 7:3 14:0 --- 15:3 -" 18:3 -- 19:0 7/12/2 -- From --~-- 0:00 To 1:30 4 POOH from 6363' to 720' 2 Stand back HWDP, Flex collars, lD DC, and junk baskets. Junk baskets were better than 3/4 full 1 PU BHA and check orientation 0.5 Test MWD/UPA 6:L RIH to 4185' Tal, slowed down did not notice any ipdication of entering liner, continue on to 6913. _ _ ~~ 2 BPM rate run in and !ag bottom at 6945', slowly pick up to 6915' and circulate bottoms up, washed from 6912' to 6945' 3 Drill from 6945 to 7217 0.5 Circulate sweep 5 Slide from 7217 to 7233 rotate to 7496 Hours Remarks ---- 1.5 Rotate from 7496' to 7531, pump high viscl high density sweeL 55 Very slow 656 Pump lCm 66 778, Pump sweep 3 029 Pump lCM 093 Pump lCM 9 478 4 583 . -- ----=- _~326' - t/9423' Inc: 26.49 - Azm: 0.62 Angle: 9.40 BR: -1.24 WR: - 0.90 d to 30 bph, The hole don't seem to be loading up with cuttings. HV-07 morning report summaryþFE162612 page 13 CONFIDENTIAL: last revised 11/8/2004 From 0:00 1:30 5:30 8:00 11:00 12:15 22:15 To 1:30 5:30 8:00 11:00 12:15 22:15 0:00 I Hours 1.5 4 2.5 3 1.25 10 1.75 7/15/2004 From To Hours 0:00 2:00 2 I 2:00 4:00 2 4:00 7:00 3 ---.- 7:00 7:30 0.5 -- 7:30 10:00 --~-~- 10:00 13:30 13:30 19:30 20:30 23:30 7/16/2004 From 0:00 4:00 --- 6:00 8:30 10:00 11:00 Remarks . Shut down pump and perform flow back, monitor returns flow rate with pumps 45%, shut down pumps flow rate dropped to 14% in 25 mins. 77 bbls returns. Circulate BU monitor gas, Max gas 203 units at btms - up. Cont circ until gas dropped to 0 units. Gas cut to 8.2 on balance scales, and 8. 7 on press scales. . . . . Pumping out of hole to 8400', flow is dow_n "to 12% with pumps off. Make wiper trip and go back to bottom Break circulation and establish good returns Pump 25 BBL sweep with flag, start to see flag at 7690 Strokes, and heavy returns at 8180 strokes, Looks like a max of a 34 BBL 2.5 lag 3.5 Pump 14 PPG bottom kill mud to bit, pump out of hole with a 1 to 1 laying 14 PPG mud ~ 8600' ( 60 bbls ) -- 19:30 6 20:30 1 23:30 3 0:00 0.5 I Remarks Rotate from 9423 to 9486 Slide from 9486 to 9511 Rotate from 9511 to 9627 Slide from 9627 to 9657 Rotate from 9657 to 9735 Rotate from 9735 to 10274 TD --~. Circulate high visc sweep _ -- Pump out of hole to 7" casing Circulate BU at 1924 strokes had 109 units of gas, 2250 units had 162 units, at 2365 had 620 units, at 2777 units and 762 units peak and 3100 units 345 units, 3662 units down to 82 units, working its way down to 33 units by bottoms up at 4900 strokes. Circulate --ª-n additional 1/2 bottoms u~ with no significant gas shows. mud in 8.7H 50 Visc mud out 8.7H 50 Visc Shut down pump and monitored flow in one hour recovered 12 bbls, with just a trickle going down flow line Circulate an additional BU trying to obtain a max rate that will not allow formation to drink and balloon. 2 BBLS about max rate, Hole took a total of 6 BBLS. Max gas was 42 units. Check well for flow, still just a trickle going down flow line. ______ Start POOH, while pumping. ,., To 4:00 6:00 8:30 10:00 11:00 12:30 Hours Remarks 4 POOH, while pumping to the top of 7" liner. Lost 13 BBLS 2 Check well for flow, Monitor well on trip tank while_ cutting drill line. 2.5 Pump dry job and POOH 1.5 Work BHA 1 RU Schlumberger 1.5 PU E-line tools Gained 1 bbl while on trip tank page 14 CONFIDENTIAL: last revised 11/8/2004 HV-07 morning report summary_AFE162612 12:30 15:30 3 15:30 17:00 1.5 17:00 19:00 2 19:00 19:30 0.5 19:30 20:30 1 20:30 0:00 3.5 7/17/2004 From To Hours 0:00 3:30 3.5 3:30 5:00 1.5 5:00 5:30 0.5 5:30 6:00 0.5 6:00 7:30 1.5 7:30 8:00 0.5 8:00 9:00 1 -.- 9:00 10:00 1 10:00 11:00 1 11:00 12:00 1 12:00 15:30 3.5 ~- 15:30 20:30 5 .-- 20:30 21:30 1 21:30 0:00 2.5 - --~,~ 7/18/2004 From To Hours 0:00 3:00 3 3:00 4:30 1.5 4:30 7:00 2.5 --~ 7:00 7:30 0.5 7:30 9:30 9:30 13:00 RIH with E-line for induction and sonic logs set down hard at 8400' to 8415', worked for some time and was not able to work down. POOH -- Rig down Schlumberger MU BHA and RIH come out sideways Clean Floors Rig up WOTCO tongs Conduct safety meeting RIH with 3.5" 9.3# L-80 EUE tubing ~-- Remarks Continue running in hole with 3 1/2", installing centralizers on every other joint to 8900' and one at 7022'. P/U ZXP liner top packer and flex lock hanger assy. __ Change elevators, Move HWDP, Circ through hanger Assembly, 31 SPM 250 PSI, 50 SOM 390 PSI _. Lu.þricate rig RIH to 4804, stacking weight, _ .-EU and pump 4 BPM @ 520 PSI, attempt to wash down with no luck, work pipe never getting any deeper. POOH and stand back DP PU WOTCO tools WOTCO RU tongs Stand back liner hanger and 3.~ Tubing __ POOH with 3.5" tubing standing back in derrick, Last 10 centralizers had been inside 7" liner and could see were they looked collapsed and were wedged on pipe. RIH with 3.5" EUE Tubing, utilizing 7 centralizers. from 10272 to 9885, run remainder of tubing and ZXP packer from derrick RD WOTCO, RU tongs for DP Run DP filling every 10 stands -e Remarks RIHwith DP AT 8400' set down, worked pipe, KU and washed through, SO pumps and wiped area, wash down w 2 BPM rate and pump pressure 430-450 PSI. 18% flow wiped clean RIH with DP to 10273' and set down 88M Up, 140M Down RU Schlumberger and hold pre-job safety meeting __~~ Test all line to 250 and 3000 PSi. Pump spacer and 40 BBL of XL 10.5 PPG Mud push, Followed by 103.5 BBL of 12 PPG Litecrete cement slurry, changed over to rig pump, dropped dart, and displaced with H20. Bumped plug and at 104 BBLs away slightly higher than anticipated. Chased plug at 4 BPM with a continues rise in pump pressure reaching 1534 PSI at time of bumping plug. Pressured up to 2500 PSi and set liner hanger bring pressure up to 3000 holding for 10 minutes. Cement in place at 08:40. Bleed off pressure and check floats. Pressure tested liner t02.1o 2000 PSI held for 30 minutes Displace well with fresh water 440 BBL. RD cement head and lay down, RD cement equipment 2 3.5 page 15 CONFIDENTIAL: last revised 11/8/2004 HV-07 morning report summary_AFE162612 7/22/04 (From HV-08 Reports) From To. Hours ¡RemarkS Happy Valley 07 Activity 2.5 Skidded rig over well NO.7 1.5 RU Reeves Electric line unit. Held PJSM. Ran CCUGR/Neutron/Density/Sonic log from 10,194'-6,900'. 5 Reeves. 2.5 Skidded rig over well NO.8. Secured all stairs in place. 13:00 14:30 17:30 18:30 19:00 20:30 21:30 7/19/2004 From 0:00 5:00 3:00 --- 5:30 7:00 12:00 14:30 17:30 18:30 19:00 --- 20:30 21:30 0:00 To 5:00 6:00 5:30 7:00 12:00 14:30 1.5 3 1 0.5 1.5 1 2.5 Hours 5 1 --- I Lay down 32 joints of 4" HT38 DP to have 8600' remaining in derrick POOH and stand back in derrick Lay down BOT running tools Remove wear ring for wellhead. Remove flow lines to the pits, while welding on riser. Remove Oil Base containment around rotary table and clean rig floor. Remove elevators, and rotary table. Washing off Oil Base mud from ~tack. Change out bottom rams to 7". Remove bell nipple, kill line, and choke line. ~- .-- Remarks N/D.--!30Ps,ßuìlding mud !:òystem. NU Dry hole tree Suspend operations Transfer cost to AFE 162695 . Correlated to Schlumberger Array Induction log dated 7/16/04. RD 8/3/04 --- From To 0:00 10:00 10:00 14:30 14:30 19:00 19:00 20:30 - -- Hours Remarks A ~Skid rig over HV NO.7 well, removed master valve, nippled up BOPs. Shell tested BOPs Low 250-psi High to 4,500-psi. U~ 10 230-joints 3-1/2" 9.3# L-80 EUE 8 rd tubing, tally same. 4.5 Rigged up handling tools, picked up Seal Assembly RIH w/136-joints 3-1/2" tubing torquing to 2,500 ft. Ibs. rabbit same w/2.862-,,"--- Picked up 5.250" X 2.992" X 7.4' CIM tie in 1/4" control line pressure tested to 5,000-psi good test. Function Tested chemical 4.5 injection valve bled off to 1 ,300-psi tested OK. RIH strapping 1/4" SS tubing to production tubing. Tagged top of liner, pump down tubing at 15 SPM, slacked off until seals engaged, Pressured up to 500 PSI. Spaced out, installed 1.5 hanger, hooked up elM line and tested to 1200 PSI. page 16 CONFIDENTIAL: last revised 11/8/2004 HV-07 morning report summary_AFE162612 20:30 23:00 23:00 0:00 Drained stack and landed hanger, Up Weight 62M Down Weight 53M, removed LOS and visually inspected hanger, found hanger to be setting high. Picked up and set down several times and was unable to facilitate correct setting depth, pulled hanger back to surface and inspected all appeared to be OK, washed out tubing spool bowl prep with water hose and attempted to set again with 2.5 same results. Pulled hanger again and removed seals landed with same resu~ __ Pulled hanger further inspection found there to be approximately 3" difference in hanger body length and that of test plug (LOS engagement taper to Bottom of hanger), looking through LOS hole at hanger engagement and landing profile it appears that there is approximately 3" of excess hanger sticking up. Contacted CIW they were checking there records not much help. CIW was able to locate another hanger a 11" x 3.5" EUE Lift and Susp. (Type FBB) and are to hot shot down 0 location. The hanger that we currently 1 have is an 11" x 3.5" EUE Lift x Susp (Type AP). - 7:30 8:30 1 I Pull Rot 8:30 9:30 1 Install r 9:30 12:30 3 NO and NU Dry monitor 12:30 15:00 2.5 BPV, se 15:00 0:00 9 Operati -- 8/7/2004 -- - -" From _~ Hours Remar 0:00 4:00 4 No activ 4:00 6:30 2.5 Travele Finish 6:30 12:00 5.5 MIRUc Spotted 12:00 19:00 7 through 19:00 0:00 5 SDFN ~--~- - -~ ~ i . 8/8/2004 ..- j 8/4/2004 From To Hours 3:30 3.5 4:30 1 5:00 0.5 6:00 1 7:00 1 7:30 0.5 0:00 3:30 -- 4:30 5:00 6:00 7:00 Remarks Waiting on hanger, from CIW, NO flow lines, remove choke and kill hoses. Clean sub base. Clean cutting s tank and centrifuge tank. Load trucks with equipment for SRF___ Buck up hanger and pup connect chemical injection line and land. RILDS, and rig up to test down tubing. RD Pollard Pressure up to 3500 PSI d9wn tubing and hold for 30 minutes chart on Pason. Pressure up to 1500 PSI on annulus and hold fo 30 minutes charting on Pason. Pull landing joint and lay down same install BPV ary Table, and_string up rig up lines to NO BOP oller carriage extension for removing BOP remove BOP, along with spools Hole tree and test void to 5000 PSI held for 30 minutes, remove BPV and install TWC pressure up tree to 5000 PSI and chemical injection line port for any signs of the upper neck seal leaking. Bleed pressure off and remove TWC and install cure we~. Release rig to turnkey demobe and move to SRF ons Suspended Jor Rig Down . . ks ity. ___ d to Ninilchik, picked up logs. moving rig from well pad. Laid out liner for coil tubing unit. Pulled back pressure valve. Pressure tested 3.5" tree to 5000 psi. oil tubing unit. choke manifold and 500-bbl frac tank. Made up hard lines. Installed hippo turbine plug and pumped 35 bbl of fresh water coil. Removed plug. Pressure tested BOPE to 300/3000 psi. Laid down injector head and secured well. page 17 CONFIDENTIAL: last revised 11/8/2004 HV-07 morning report summary_AFE162612 From To Hours 0:00 6:30 6.5 6:30 8:00 1.5 8:00 10:00 2 Remarks No activity. Picked up 2.25" jet nozzle with dual flapper check valve. Stab injector head, set cement anchors. Pressure test manifold and BOPE' . to 3000 psi. Started in hole jetting with 200 scfm. Increased N2 rate to 1000 scfm at 8000'. 10:00 13:30 3.5 13:30 0:00 10.5 -8723/20041-- -¡- From To Hours 0:00 8:00 8 8:00 9:30 1.5 9:30 10:45 1.25 10:45 12:00 1.25 12:00 13:00 1 13:00 0:00 11 8/24/2004 -~ -- From 0:00 7:30 9:15 10:30 11:00 12:00 12:15 12:53 -~- 13:00 13:45 14:00 ----- 14:45 ---~ 15:30 16:30 17:00 Jetting with 1000 scfm at 9500'. PU weight = 14.5 k Ibs. Circulation pressure = 3100 psi. Set down at 10184' CTM. PU to 10170'. Jetted hole dry. Recovered 88 bbl from well plus 34 bbl from reel of coil tubing. POOH. Left 1900 psi nitrogen pressure on well.~ RD coil tubing unit, move to HV-8. ~emarks No J::>perations___ PJSM, RU Pollard Slickline and pressure test to 2500 psi. __ ~_ MU & RIH with 2.75" GR with hydraulic jars and tagged up at 10, 187' WLM (KB). POOH. No problems RIH wI 20', 2.5" dummy gun and tag at 10,187' WLM (KB) POOH wI no proble~ Rig Slickline down. Tubing pressure is 2000 psi. Secured the well. SDFN . Hour~Remarks 7.5 I No Operat~ons 1.75 PJSM, rig up Schlumberger and pressure test to 4000 psi MU & RIH with 20' of 21/4",6 spf, 60 degree phase hollow carrier gun loaded with 8.5 gram PJ2306 charges with SAFE firing system. Tie in with Reeves Compact Nuclear Porosity Identification log (7-22-04). Spot gun from 9998' to 10,018' (T-80 sand). Bled tubing pressure down to 1804 psi and fired gun. Pressure went to 1806 psi. Tagged fill at 10,171' before firing gun (tied in with 10:30 1.25 Reeves log). 11 :00 0.5 rÕÕFf.F>ressure is 1799 psi with tools outof hole. All shots fired 12:00 1 Rig down Schlumberger and turr~ over to testers. _ 12:15---0:25 Take fluid shot. Fluid level shows 8392' and 8387' 12:53 0.64 Open to tank ~ 10/64 choke, TP = 1806 psig, PC = O. 13:00 0.11 ITP = 1682, PC =0 13:45 0.75 Open choke to 12/64, put through test separator with BPV set at 500 psig, TP =1120, PC';; O. 14:00 0.25 TP = 931, PC =0. . 14:45 0.75 Lowered BPV to 400 psig, TP = 569, PC ~·O.· 15:30 0.75 TP = 396,£º- = O. BPV remaining closed, no flow. Lowered BPV to 200 psig. 16:30 1 TP = 259, PC = 0, Lowered BPV to 100 psi 17:00 0.5 ITP = 167, PC = 0, Continue monitoring, no flow 17:30 0.5 TP = 113, PC = 0, open choke up to 19/64 To 7:30 9:15 . HV-07 morning report summary_AFE162612 page 18 CONFIDENTIAL: last revised 11/8/2004 17:30 18:00 0.5 TP = 59, PC = O. Back pressure valve set to low, set up to 100 18:00 20:00 2 TP = 62, PC = 0, Continue monitoring, no flow 20:00 22:00 2 TP = 69, PC = 0, Continue monitoring, no flow 22:00 0:00 2 TP = 73, PC = 0, Continue monitoring, no flow ~.__. 8/25/2004 -- From To Hours Remarks 0:00 6:00 6 Continue to monitor well, TP = 87, PC = O. 6:00 7:00 1 PJSM, Rig up Pollard slick line and pressure test to 2000 psi. S RIH with 2.31" GR and tagged at 10,182' KB. It looked like fluid 7:00 8:30 1.5 POOH ---------+--. 8:30 13:00 4.5 RIH with pressure/temperatur~ tool to 10,162' at 120 fpm. Logg 13:00 13:30 0.5 Rig down, down load data and shut in and secure well. TP - 11 HV-07 morning report summary_AFE162612 page 19 psi. - \ '"' . ' hut we~in TP - 89 psi level at 1750' going in hole but could not confirm coming out of hole. ed up to 5000' at 60 fpm and 5000' to surface at 120 fpm. 8 psi . . CONFIDENTIAL: last revised 11/8/2004 Debra Oudean G & G Technician . Unocal Alaska 909 w. 9th Avenuc Anchorage, AK 99501 Tcle: (907) 263-7889 Fax: (907) 263-7828 E-I11H ¡I: olllkallll~l!un()CH I.com UNOCAL~ To: AOGCC Helen Warman 333 W. 7'h Ave. Ste#]00 Anchorage, AK 9950] . RECEIVED AUG 2. 7 2004 Alaska Oil & Gas Cons. Commii>slor; Anchorage Date: August 25, 2004 ~~~'~11.. .,~.... HAPPY VALLEY 3, 4, 6, 7 ] . WELL ;'05, 2- "2- :: HAPPY VALLEY-3 ./!IHAPPY VALLEY·4 ~()'j.1-~; 'I ¡HAPPY VALLEY-4 ¡HAPPY VALLEY-4 "- {/If ¡HAPPY VALLEY-6 jo4- ~(1IHAPPY VALLEY-7 '1P4 (J ¡HAPPY VAlLEY·] APPY VALLEY·7 I L?G TYPE I SCALE COMPLETlON RECORD 3.5 FASDRILL ISINCH- PLUG 2.5 HSD POWERJETS COMPLETION RECORD HALLIBURTON 5 INCH 7/6/2004 9050-9235 FASDRILL BRIDGEPLUG 2.5 POWERJET HSD 3 SPF ¡COMPLETION RECORD HALLlBUTRONI51NCH "' 7/6/2004.19050-9235 FASDRILL BRIDGE PLUG ¡COMPLETION RECORD PRESSURE / 15 INCH I 7/6/200415080-9248 TEMPERATURE ¡COMPLETION RECORD 2.5 HSD PJ [SINCH 6/15/2004"[9600-11605 3SPF PRESSURE, TEMPERATURE ¡ARRAY INDUCTION BOREHOLE "¡m- 7/16/2004 [50.8388 COMPENSATED SONIC MD IINCH ARRAY INDUCTION BOREHOLE [2ïNCH 17/16/2004 [50-8388 COMPENSATED SONIC TVD I . MUDLOGGING FINAL WELL REPORT ¡-II LOG INTERVAL DATE. LOGGED 5/27/2004 9228-9900 L~E IFIL~IcD PAPERI 11 1r- 01 1 0 0 NOTES .1 I DATA COMBINED I 11r¡O°N1CD I ~1rlö I 11[1111~[. I ~1rr~~;;COMBINED I ~1lo'¡00N 1 CD I or--or-ol 11 Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. rf~ý Date: [Fwd.: [Fw.d: RE: Unocal's gas well 9 miles .. ell rd. Ninilchik]] to .. e ;).04-i/~ Jody, please put a copy in EACH of the Happy Valley well files. Thanks -------- Original Message -------- Subject:[Fwd: RE: Unocal's gas well 9 miles oilwell rd. Ninilchik] Date:Mon, 23 Aug 2004 15:20:04 -0800 From:Thomas Maunder <tom maunder@admin.state.ak.us> Organization:State of Alaska To:John Norman <john norman@2admin.state.ak.us>, Daniel T Seamount JR <dan seamount@admin.state.ak.us>, Bob Crandall <bob crandall@admin.state.ak.us>, Robert Mintz <robert mintz@law.state.ak.us> CC:Jody J Colombie <iody colombie@admin.state.ak.us> All, It appears that there may be a potential issue brewing in the Happy Valley area. In receive any further emails, I will forward them on. Tom -------- Original Message -------- Subject:RE: Unocal's gas well 9 miles oilwell rd. Ninilchik Date:Mon, 23 Aug 200415:03:18 -0800 From:Joseph Kashi <kashi@2alaska.net> To:'Thomas Maunder' <tom maunder@admin.state.ak.us> CC:'phillip yezierski' <philski9@yahoo.com>, 'Carol D Lee' <carol lee@dnr.state.ak.us> Dear Ms. Lee: As you can see from the prior Emails set out in the thread below, I am inquiring about whether any production units have been established in the Caribou Hills east of Ninilchik on Oil well Road. Your assistance is appreciated. Thanks Joe Kashi -----Original Message----- From: Thomas Maunder [mailto:tom maunder@admin.state.ak.us] Sent: Monday, August 23, 2004 2:30 PM To: Joseph Kashi Cc: 'phillip yezierski'¡ Carol D Lee Subject: Re: Unocal's gas well 9 miles oilwell rd. Ninilchik Mr. Kashi, Here is the text of an email I sent to Mr. Yezierski last week in response to his questions. I am sorry I did not copy you on that response. With regard to your specific questions on production units, I suggest you contact Ms. Carol Lee at the Division of Oil and Gas (DOG). Her eddress is above. 100 8/25/2004 2:50 PM [Fwd: [Fwd: RE: UnocaI's gas well 9 miles ... ell rd. Nini1chik]] t ,....... e Tom Maunder, PE AOGCC Mr. Yezierski, The Unocal development you are referring to is called Happy Valley and is within the Deep Creek Unit administered by the State Division of Oil and Gas. The AOGCC has issued permits for 8 wells to be drilled from the same pad located in section 22. According to the information published for these wells, 4 wells reach total depth in section 22 and 1 each in sections 14, 15, 21 and 28. No wells have been proposed for sections 23 or 24. Our regulations do require notice to landowners depending on the distance from the proposed activity. In the case of these gas wells, all owners within 3000' laterally of the well at the production zone should be notified. Although you did not provide the footage distances to the section lines for your property, it would appear that it is likely beyond the 3000' notice distance. If you would like, we can add you to our notice list for any activities that require public notice in this area. You may also explore our web site at www.aogcc.alaska.gov. In the "Orders" section under conservation orders you will find several orders relating to the drilling of the wells at Happy Valley. "Drilling Statistics" would have information regarding when permits are issued or wells are completed. With regard to Unit administration and other land activities, you might contact Ms. Carol Lee at the Division of Oil and Gas. I have included her eddress above. I hope this information is of help. Tom Maunder, PE AOGCC Joseph Kashi wrote: >Please advise whether any production units have been established in this >area and if so, what are the boundaries. If there is a different state >agency to contact in that regard, please advise with contact name and >contact information. > >Thanks > >Joe Kashi >AK Bar #7811107 > >-----Original Message----- >From: phillip yezierski [mailto:philski9@yahoo.com] >Sent: Friday, August 20, 2004 12:19 PM >To: tom maunder@admin.state.ak.us >Cc: kashi@alaska.net >Subject: Unocal's gas well 9 miles oilwell rd. Ninilchik > >Dear Mr. Maunder, > >As per our conversation on August 20,2004 at 11:20 >a.m. > >I own property approximately 10.5 miles down oilwell 20f3 8/25/20042:50 PM [Fwd: [Fwd: RE: Unocal's gas well 9 miles ... ell rd. Ninilchik]] , " >Rd. in Ninilchik from the Sterling Hwy. The Legal >description is as follows. T02S R13W S24 HM0730482 >Alaska State Land Survey 72-81 Tract A. > >Upon my inspection of the property on August 19,2004 1 >noticed the installation of a 12" pipeline from a >Unocal facility at about 9 miles on oilwell rd. from >the Sterling Hwy. > >1 own the Mineral Rights to the above mentioned >property and would like to know if 1 am due a >consideration for possible oil or gas which this well >might be producing and might be part of what lies >beneath my property. > >Any questions 1 can be reached at (907)252-5239 >Very truly yours > >Phillip Yezierski > > > > > John K. Norman <John Norman@admin.state.us> Commissioner Alaska Oil & Gas Cmservation Commission 30f3 . 8/25/2004 2:50 PM Winton- On Happy Valley #7, Unocal Ran and cemented the 7" emergency liner in HV #7. Liner: 7"26# l-80, BTC, Tal -4100', BOl 6915' MD, 6110' TVD. Cemented with 52 bbls 12 ppg lead, 10 bbls 15.8 ppg tail. Unocal will be drilling out with a 6-1/8" bit vs the 8-1/2" as programmed. The directional path and targets remain the same. Contingencies are being generated for a 5" liner in the event the losses continue. I will give a call on Monday. All the best, Steven Lambe . fl!ì f[ ffi _. rK (QJ UlJ If LrÙ~:J L. Q)j . A.,ASIiA OILA5D GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR Steven S. Lambe Advìsing Drìlling Engineer Union Oìl of California (Unocal) P.O. Box 196247 Anchorage, Alaska 99519 333 W. 7'" AVENUE. SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Happy Valley #7 Union Oil of California (Unocal) Permit No: 204-106 Surface Locatìon: 1319' FSL, 1190' FEL, SEC. 22, T2S, RI3W, S.M. Bottomhole Locatìon: 1657' FSL, 519' FEL, SEe. 15, T2S, R13W, S.M. Dear Mr. Lambe: Enclosed ìs the approved application for permit to drill the above referenced development well. The permit ìs approved subject to full compliance with 20 MC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. Unocal assumes the liabìlìty of any protest to the spacing exceptìon that may occur. This permit to drill does not exempt you :trom obtaining additional permits or approvals required by law ITom other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been ìssued. In addition, the Commission reserves the right to withdraw the permit in the event ìt was erroneously ìssued. 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 notìce for a representatìve of the commìSSiOJY1C. 0 'tness any required test. Contact the Commission's petroleum field inspector at (907) 6~-360 ager). BY ORDER <w THE COMMISSION DA TED thisJJ!!day of June, 2004 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. s . Unocal corporation. P.O. Box 196247 Anchorage, AK 99501 Telephone (907) 263-7660 II,' i UNOCALe JUN'[ 4 'I' f'04 . .. J t~~ :: ::., .. :,'; Monday, June 14,2004 Alaska Oil and Gas Conservation Commission 333 West ih 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 2ih, 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 AAC 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. Si7J ~/ Steven Lambe Advising Drilling Engineer SSLls Enclosure nQ'G\t\~At- 2. Operator Name: Union Oil of California (Unocal) 3. Address: PO Box 196247, Anchorage, Alaska, 99519 4a. Location of Well (Governmental Section): Surrace: 1319'FSL, 1190'FEL, Sec. 22, T2S,R13VV, S.M. Top of Productive Horizon: 308'FNL,570'FEL, Sec. 22, T2S, R13VV,S.M Total Depth: 1657'FSL, 519'FEL, Sec. 15, T2S,R13VV,S.M 4b. Location of Well (State Base Plane Coordinates): Surrace:x- 228078 y- 2189860 Zone- 16. Deviated wells: Kickoff depth: Maximum Hole Angle: 1 a. Type of Work: 18. Casing Program: Size Casing 18-5/8" 13-5/8" 9-5/8" 3-1/2" Hole N/A 16" 12-1/4" 8-112" 19. Total Depth MD (ft): Casing Structural Conductor Surrace Intermediate Production Liner Perroration Depth MD (ft): k14Ar 6/14/¿Dð4 . STATE OF ALASKA . ALASKA Oil AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 MC 25.005 11 b. Current Well Class: Exploratory 0 Development Oil 0 Multiple Zone 0 Stratigraphic Test 0 Service 0 Development Gas 0 Single Zone 0 5. Bond: Blanket 0 Single Well 0 ~11. Well Name and Number: Bond No. _ l J ~: 8¿b-g ..5' 5' 3 LJ..:2 /~ Happy Valley #7 6. Proposed Depth: 12. Field/Pool(s): MD: 12159 TVD: 10361 Wildcat in BelugafTyonek 7. Property Designation: C-061588 Drill 0 Redrill 0 Re-entry 0 4 1500 feet 36 degrees 13. Approximate Spud Date: 6/16/2004 14. Distance to Nearest 2780 Property: 684 10. KB Elevation 15. Distance to Nearest Well (Height above GL): 22.5 feet Within Pool: 1942 17. Maximum Anticipated Pressures in psig (see 20 MC 25.035) Downhole: 4734 Surrace: 3717 Setting Depth Quantity of Cement Bottom c. f. or sacks 8. Land Use Permit: N/A - Private 9. Acres in Property: Specifications Top Weight Grade 97 K-55 68 K-55 40 L-80 9.2 L-80 Length 40' - 80' 1000 4308 8059 TVD MD MD TVD (including stage data) o 40' - 80' 40' - 80' Driven o 1000 1000 108 bbls, 388 sx o 4308 4000 228 bbls, 725 sx 3831 12159 10361 565 bbls, 1283 sx* *Contingent on logs analysis Coupling Welded BTC BTC-Mod EUE 8 Rnd o o o 4100 PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Length Size MD TVD Cement Volume Perroration Depth TVD (ft): Time v. Depth Plot U Shallow Hazard Analysis U Drilling Fluid Program 0 20 MC 25.050 requirements 0 Date Contact Filing Fee U BOP Sketch U Property Plat 0 Diverter Sketch 0 21. Verbal Approval: Commission Representative: 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. 20. Attachments: Printed Name Drilling Program U Seabed Report 0 Steven S. Lambe Title Advising Drilling Enigeer Signature Phone 263-7637 Date 14-Jun-04 Commission Use Only Permit to Drill IAPI Number: permit APproval//; ~d see .cover letter for other Number: ::z¿,~ - / ð 6 50- .2 ~ 1- 2ðO 2- 2- Date: ~ ï b requirements. Conditions of approval: Samples required Yes 0 NO~ Mud log required Yes 0 No ~ I~ 2~.HYdro~en sUlfi~measure~ ,Yes 0 ~.o Directio~al sur:-ey ~equirrd_ Yes~ F "0 ; Other:.l ":. '2c L 2..'5, C\5S ç.,-;- Ú.) J d.~ \t.ell·tey... V'¿{j,l\.1-1 ¡,y...e~t i S ¿,..H:L{Y~d. .1 es ~ ¡s,D.~ 4$"<90 (7$ t , Vh 0 .f.. LYL / tt{feÝ~'tA..t-e V-ûut {Xl \..( .ç.~Ý·o~'6,fc..Uj..qf>-><: I'> Dvt!)prof/e . App,,,,,"" byo THE COMMISSION O,teo 6 It '/ ()'f Form 10-401 Re Submit inDuplicate ·..\\\"".... PROPOSED ~EVISED HAPPY VALLEY NO. 7 WELL SURFACE LOCATION HAPPY VALLEY NO.1 PAD ;> w a:: " "II:: > I ..J (/) lL. en r;) ~ .. 1__ 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 1190' FEL HV#7 REV. . AS STAKED HAPPY VALLEY NO. 7 REV. GRID N: 2,189,860.298 GRID E: 228,077.784 LATITUDE: S9°S9'09.616"N LONGITUDE: 1S1°29'OS.S97"W ELEV. 716' - N e SECTION 22 TOWNSHIP 2 SOUTH RANGE 13 WEST SEWARD MERIDIAN ALASKA Grid SEC 22 SEC 23 SEC 27 SEC 26 AS STAKED HAPPY VALLEY NO. 7 REV. GRID N: 2,189,860.298 GRID E: 228,077.784 LATITUDE: S9°S9'09.616"N LONGITUDE: 1S1°29'OS.S97"W ELEV. 716' . '''-'''''''' ~ '~~..9.f. /~4~, ~ t I' - ~~.., *"~L' - (;;) :' .~ty I :: * ::49lJ:i .... * ~ ,................................... , ", " " " ,................................... .", , ~ :. M. SCOTT MCLANE¡: ð ... I'?-· . - I~ \1'1:: .... 4928-S .,: - ~~ 1'~()""" ........£)'3.: ~I þ ...... ....'... ". 1ì'o¡:-tSSloNþ\.\' \.. ~, ,\\"",,-' PROPOSED REVISED HAPPY VALLEY NO.7 WELL SURFACE LOCATION ~ HAPPY VALLEY NO.1 PAD :> w a::: I"- "11= > :r: -.J en lL. 0:> ;;; . OILWELL RD. SCALE 1 inch = 300 ft. o 300 450 ~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 1190' FEL HV#7 REV. ~ 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, AK 99519-7685 HAPPY VALLEY NO.7 WELL REVISED SURFACE LOCATION NINILCHIK, AK P.O. 80x 468 SOLDOTNA, AK 99669 Project: 043021 ~ Consulting c;roup ~ Testing TEL 907.283.4218 FAX 907.283.3265 Revisions: #7 WELL LOCATION Dwg:043021 I Date: 6/08/04 FIGURE: 1 . . 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 +/- 1000' without a diverter. AOGCC regulation 20 AAC 25.035 (h) (2) stipulates: (h) IIUpon request f the operator, the commission will, in its discretion, approve a variance ...... (2) from the diverter system requirements in (C) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary. II 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 1000' 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 1000', to eliminate the risk of a shallow water flow. . . WAIVER #2: Unocal requests permission to drill the 16" surface hole to +/-1000' without surveying until after the 9 5/8" casing is cemented. AOGCC regulation 20 AAC 25.050 (h) stipulates: (h) IIUpon application, the commission will, in its discretion, waive all or part of the directional survey requirements of this section or approve alternate means for determining the location of a wellbore if the variance at least equally ensures accurate surveying of the wellbore to prevent well intersection, to comply with spacing requirements, and to ensure protection of correlative rights. " Due to plans to drill the 16" surface hole vertically to 1000', 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. . """"'" . _......~~.9f .'~4~c!' " - ~,?-:.., ."~L' - '" .' ~I.:y I :: * ....49I1:i .... *~ ".,.. .... .. . . . ... . .... .... .... . . . . . .., ~ ~ , , ~ ~. . . ... . . .. .. . . . .... ... . .... . . . ..... ." , ~ :. M. SCOTT McLANE.:' ... I ~'. .. ~ - I~ 1:: ". 4928-$ ..',§'-- ~I ~ ...... ...... ~-: , () A ...... \:~_ l t . Yi'o,t-rss IOI'IÞ.\. ,,-'" -""",,,- PROPOSED REVISED HAPPY VALLEY NO.7 WELL SURFACE LOCATION . ~. OILWELL RD. HAPPY VALLEY NO.1 PAD :> w a:: i' """ > I: -1 (/ lJ... '(,) ;;:; 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 1190' FEL HV#7 REV. AS STAKED HAPPY VALLEY NO. 7 REV. GRI D N: 2,189,860.298 GRID E: 228,077.784 LATITUDE: 59°59'09.616"N LONGITUDE: 151°29'05.597"W ELEV. 716' ~ 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 e Anchorage, AK 99519-7685 HAPPY VALLEY NO.7 WELL REVISED SURFACE LOCATION NINILCHIK, AK P.O. BOX 46B SOLOOTNA. AK 99669 ~ Consulting C;-roup ~ Testing TEL 907.283.4218 FAX 907.283.3265 Project: 043021 Revisions: #7 WELL LOCATION Dwg: 043021 I Date: 6/08/04 FIGURE: 1 I I ¡ Location: Kenai Peninsula, Alaska Slot: HV #7[ Field: South Kenai Gas Field Well: HV #7 ¡ Installation: Happy Valley Wellbore: HV #7 i ---------,~._,-_.,--,~ WELL PROFILE DATA I Inc I Azi .:¡:YO! North -E~ degiiOOft Tv. Sect I : '. I .! l 0.00 I 0.00 I 0.00 I 0.00 0.00 O.OO! 0.00 I 0.00 i 0.00 I 1500.00 I· 0.00 0.00 0.00 i 0.00 I I ' I I 3300.00 36.00 I 355.38 I 3183.88 I 545.35 -44.07 2.00 I 536.27 I 4308.78 36.001355.3814000.00 11136.37 -91.83 0.00 11117.441 5028.68 36.00 i 20.00 I 4585.50 11548.24 -36.22 2.00 11533.00 1 . I . 36.00 I 20.00 I 6000.00 i 2513.96 315.28 0.00 12533.61 ¡Scale 1 em = 200 ftEast (feet) _> 36.00 I 9.93 I 7629.50 I 3653.29 619.82 0.29 I 3701.03 I 36.00 I 353.80 10240.00 5530.181680.93 0.29 i 5571.90 12158.91 36.00: 353.80 I 10361.35 5617.83 671.41 0.00 5657.81 I . . -~_._~" /~ UNOCAL .£ IN1;¡:iY -------,- Point ! MD Tie on 0.00 End of Hold 1500.00 6777.10 8789.49 12008.91 -800 -400 f j¡L UNOCAL8 -~ Created by: Plan~-¡ Date plotted: 9-Jun-2004 I Plot reference is HV #7. : Ref we/lpath is HV #7 Vers#4. i Coordinates are in feet reference HV #7. True Vertical Depths are reference Rig Oatum. Measured Depths are reference Rig Oatum. Rig Datum: Kuukpik #5 Rig Datum to mean sea level: 738.50 ft. Plot North is aligned to TRUE North. -0 400 800 1200 End of BuildlTurn End of Hold End of Turn End of Hold End of Turn End of Turn TD. & End of Hold ¢:: 0 -800 0 """ " E u 0 () êij u (/) 800 1600 2400 - 3200 - CD .! - .c 4000 - C. CD C 4800 Cü U E 5800 CD > CD 6400 ;:, ... l- I V 7200 8000 8800 9600 10400 11200 TD -7" Casing pt. TD Target - EOC HV#7 TD Tgt Rvsd 7June04,5:00pm HV#7 DeepTgt Rvsd 7-June-04,5:00pm 13 5/8" Casing pt. KOP 6.00 12.00 DLS: 2.00 deg/100ft 24.00 32.00 EOC ~ ~ 9 5/8" Casing pt. 35.37 EOC HV#7 T70 Tgt Rvsd 7Jun05,5:00pm Begin Walk to left 35.93 35.90 DLS: 0.29 deg/10Oft 35.93 HV#7 T70 Tgt Rvsd 7Jun05,5:00pm T70 Target 35.88 35.80 HV#7 DeepTgt Rvsd 7-June-04,5:00pm DLS: 0.29 deg/1 OOft 35.73 35.75 35.80 35.88 HV#7 TD Tgt Rvsd 7June04,5:00pm TD Target - EOC ~ 36.00 TD - 7" Casing pt. '1 I -800 -0 800 1600 2400 3200 4000 4800 5600 6400 Scale 1 em = 400 ft Vertical Section (feet) -> Azimuth 11.15 with reference 0.00 N, 0.00 E from HV #7 T70 Target Begin Walk to left EOC 9 5/8" Casing pt. EOC 1 r KOP 13 5/8" Casing Pt. 1600 6400 6000 5600 5200 4800 4400 4000 3600 ^ I 3200 Z 0 ;¡ 2800 ;!, cr CD - 2400 - 2000 1600 1200 800 400 (/) 0 IU 1õ 0 0 3 " -400 /'V 0 0 ;:> UNOCAL Field: South KenaÍ Gas Field Installation: Well: HV #7 Wellbore: HV #7 nn _____ Date plotted: 9-Jun-2004 Plot reference is HV #7. Ref wellpath Is HV #7 Vers#4. 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 Oatum to mean sea level: 738.50 ft Plot North Is aligned to TRUE North. 300 280 2700 TVD 3100 TVD 260 240 2300 TVD 220 200 2500 TVD 180 2900 TVD 160 ^ 2100 TVD 140 I Z 0 ;:1. 120 ::r - 2300 TVD ër \Î1i;, 100 œ. - ~ 2300 2700 TVD 1900 TVD 80 2100 TVD 60 2500 TVD 40 1700 TVD 2100 TVD 20 0 1500 TVD ~ en 2100 TVD -20 (1 Q) ¡¡¡- TVD -' (1 -40 3 II -' 0 -60 ;:I! Scale 1 em::: 10 it -180 -160 -140 -120 -100 -80 (feet) -> -20 0 -60 -40 20 40 60 80 100 120 140 Scale 1 cm :::: 50 ft -800 -700 -600 UNOCAL Field: South Kenai Gas Field Installation: Valley -500 -400 -300 5500 TVD 5000 TVD 8500 TVD .., 3.5od3mTVD ., 7500 TVD . 7000 TVD . 65~8JcY-PvD ~aoo fif)§O TVD ,~ 4Cbì>~D ~ Ea.st (feet) -> -200 -100 0 100 4500 TVD -'r TVD I 9 5/8in Casing 3500 TVD 3500 TVD 3000 TV 3000 TVD Slot: Well: HV #7 Wellbore: HV #7 200 300 3500 TVD Created by':'· Pfanner Date plotted: 9·Jun·2004 Plot reference is HV #7. Ref weJlpath is HV #7 Vers#4, 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 ft Plot North is aligned to TRUE North. 400 500 600 700 1900 1800 - 1700 .. 1600 1500 . 1400 1300 1200 ^ 1100 Z 0 ::+ - 1000 .z ;' 4000 TVD m - 900 ~ 800 700 - 600 500 400 (fJ - 300 0 m (õ 0 - 200 3 II QI 0 100 =- UNOCAL Field: South Kenai Gas Field Installation: Well: HV #7 Wellbore: HV #7 Seale 1 em::: 150 ft -2100 -1800 -1500 -1200 -900 iHV#2i 9000 TVD , ". ROOO TVD .----"'~ lJy~ ~ -600 East ( -300 0 -> 600 900 1200 1500 1800 2100 2400 6300 HV#7 DeepTgt Rvsd 7-June-04,5:00pm HV#7 TD Tgt Rvsd 7June04,5:00pm 8500 TVD TVD HV#7 T70 Tgt Rvsd 7Jun05,5:00pm 8000 TVD 7500 TVD 7000 TVD 6500 TVD 6000 TVD 5000 TVD 5500 TVD 5000 TVD Date plotted; 9-Jun-2004 Plot reference is HV #7. Ref wellpath is HV #7 Vers#<!o Coordinates are in feet reference HV #7. True Vertical Depths are reference Rig Datum. Measured Depths are reference Rig Detum. Rig Datum; Kuukpik #5 Rig Datum to mean sea level: 738.50 ft. Plot North is aligned to TRUE North. 6000 5700 5400 5100 4800 4500 4200 3900 ^ . Z ~ 3600 g, :r - ~ 3300 ~ - - 3000 2700 2400 2100 1800 1500 (/) £ ëD 1200 ....... (') 3 II 900 ....... O! 0 ;:::I> UN L Location: Field: Installation: Kenai Peninsula, Alaska South Kenai Gas Field Happy Valley Slot: Well: Wellbol'e: 350 o 10 Date plotted: "~p¡õf refèrence Is HV #7. Ref wellpath Is HV #7 Vers#4. CQordinates are- in feet reference HV #7, True Vertical Depths are reference Rig Datum. Measured Depths are reference Rig Datum. Datum: Kuukpik #5 TRUE NORTH 738.50 ft 340 20 330 30 320 40 310 50 300 60 290 70 280 80 270 200 90 260 100 110 120 130 220 140 210 200 150 200 160 190 180 170 Normal Plane Travelling Cylinder - All depths shown are Measured depths on Reference Well · e UNOCALe UNOCAL, HV #7 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 1 Wellbore: HV #7 Wellpath: HV #7 Vers#4 Date Printed: 9-Jun-2004 Biï. ew:. INTEQ 'WeU80re Name I Created HV #7 ,12-Apr-2004 I Last Revised I 9-Jun-2004 I I I ~ Well Name HV#7 Government 10 Last Revised 12-Apr-2004 59 9.6156 Lonoitude ì W151 295.5974 I North 1346.79N lEast ,1203.87W Slot Name HV#7 I Grid Eastino 1228077. 7840 ,s-~~ì__ ......~.. Name HaDPv Valley System Name AK-4 on NORTH AMERICAN DATUM 1927 Field Name South Kenai Gas Field ¡EaStina 269300.0040 I Northino 2597449.9970 I Coord System Name I North Alionment I AK-4 on NORTH AMERICAN OATUM 1927 datu~ True! L All data is in Feet unless otherwise stated Coordinates are from Slot MO's are from Rig and TVD's are from Rig ( Kuukpik #5 738.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 6.82 degrees Bottom hole distance is 5657.81 Feet on azimuth 6.82 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . UNOCALe UNOCAL, HV #7 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska e PROPOSAL LISTING Page 2 Wellbore: HV #7 Wellpath: HV #7 Vers#4 Date Printed: 9-Jun-2004 ... BAKER .,~ INTEQ 1500.00 I 0.00 0.00 1500.00 O.OON M~ 10:00 I 0.00 1600.00 2.00 355.38 1599.98 1.74N 0.14W I 2.00 I 1.71 1700.00 4.00 355.38 1699.84 6.96N 0.56W 2.00 . 6.84 1800.00 6.00 355.38 1799.45 15.64N 1.26W I 2.00 r15.38 1900.00 8.00 355.38 1898.70 27.79N 2.25W I 2.00 I I . 27.33 Wellpath (Grid) Report MD[ft] IlnC[deg] Azi[deg] I TVD[ft] I Station Station I Dogleg Severit1 Vertical Easting I Northing : . ------tPositiOn{Y) Position{X) I I Sectionfftl -----.-J 0.00 I 0.00 0.00 I 0.00 _.-J O.OON O.OOE i 0.00 i 0.00 228077.78: 2189860.30 . 100.00 I 0.00 0.00 I 100.00 II O.OON o.oOE i 0.00 I 0.00 228077.78 i 2189860.30 200.00 i 0.00 0.00 200.00 O.OON O.OOE I 0.00 I 0.00 228077.78 I 2189860.30 . -- -ªQQ.Q~L__...QJ1º--~ _ _J¡.QO__j__~OO~º-Q_ _L O.OCLN__ ...O.OO~_ ~__ o.QQ__L _---ºJ1CL ___.2280U.lª-_;__Z-L8~8..Q0~3º_J 400.00 I 0.00 . 0.00 . 400.00 -a.DON -- -O:OOÈI 0.00- . 0.00 228077.78) 2189860.30 I I ---t ,I 500.00 0.00 0.00 . 500.00 O.OON O.OOE 0.00' JlQQ 228077.78...j. 2189860.~ 600.00 0.00 0.00 600.00 O.OON O.OOE 0.00 10.00 228077.78 II 2189860.30 i 700.00 0.00 0.00 700.00 O.OON O.OOE 0.00 I 0.00 228077.78 I 2189860.30 I 800.00 0.00 0.00 800.00 O.OON O.OOE 0.00 I 0.00 228077.78 i 2189860.30 I 900.00 0.00 0.00 900.00 I O.OON O.OOE 0.00 I 0.00 228077.78 I 2189860.30 1000.00 0.00 0.00 1000.00 I O.OON O.OOE I 0.00 i 0.00 228077.78 I 2189860.30 1100.00 0.00 0.00 1100.0~0.00N O.OOE i 0.00 I 0.00 228077.78 I 2189860.30 ! 1200.00 0.00 0.00 1200.00 O.OON O.OOE ----1. 0.00 I 0.00 228077.78 I 2189860.30.--j 1300.00 0.00 0.00 1300.00 O.OON O.OOE i 0.00 L..JlQO 228077.78 I 2189860.30.--j 140000 000 000 140000· OOON OOOE I 000 +- 000 228077.78 I 2189860.30 II 228077.78 . 2189860.30 . 228077.6ª---+--.2189862.04 -J 228077 ~+_2189867.26 ..J 228076.87 2189875.96 I 228076.16 I 2189888.13 I 228075.25 2189903.75 228074.14 2189922.79 228072.83 2189945.25 228071.33 2189971.09 228069.63 2190000.27 228067.74 2190032.77 22806565 219006854 2700.00 j 24.00 355.38 2665.22 246.87N 19.95W 2.00 I 242.76 228063.38 I 2190107.55 I I I I 2800.00 I 26.00 355.38 2755.84 288.99N 23.35W 2.00 284.18 228060.92 I 2190149.74 i , 2900.00 28.00 355.38 2844.94 334.24N 27.01W 2.00 328.67 228058.28 I 2190195.05 ! 3000.00 30.00 355.38 2932.39 382.56N 30.91W 2.00 376.19 228055.46 I 2190243.45 ...j 3100.00 32.00 355.38 3018.11 433.90N 35.06W I 2.00 426.67 228052.47 i 2190294.86 1 3200.00 34.00 355.38 3101.97 488.18N 39.45W 2.00 480.05 228049.30 I 2190349.23 3300.00 36.00 355.38 3183.88 545.35N 44.07W 2.00 536.27 228045.96 I 2190406.~ I 3400.00 36.00 355.38 3264.78 603.94N 48.80W 0.00 I 593.88 228042.55 2190465.17 3500.00 36.00 355.38 3345.68 662.52N 53.54W 0.00 651.49 228039.13 I 2190523.84 3600.00 36.00 355.38 3426.59 721.11N 58.27W 0.00 I 709.10 228035.71 I 2190582.52 3700.00 36.00 355.38 3507.49 779.70N 63.01W I 0.00 I 766.71 228032.29 I 2190641.20 3800.00 36.00 355.38 3588.39 838.29N 67.74W I 0.00 824.32 228028.87 I 2190699.88 I I 3900.00 36.00 355.38 3669.29 896.87N 72.48W I 0.00 881.94 228025.45 I 2190758.56 4000.00 36.00 355.38 3750.19 955.46N 77.21W I 0.00 i 939.55 228022.04 2190817.23 4100.00 36.00 355.38 3831.09 1014.05N 81.94W ¡ 0.00 I 997.16 228018.62 I 2190875.91 [ 4200.00 36.00 355.38 3912.00 1072.64N 86.68W I 0.00 I 1054.77 228015.20 ! 2190934.59 4300.00 36.00 355.38 3992.90 1131.22N 91.41W 0.00 I 1112.38 228011.78 I 2190993.27 i I 4308.78 36.00 355.38 4000.00 1136.37N 91.83W I 0.00 I 1117.44 228011.48 2190998.42 -1 2000.00 2100.00 2200.00 2300.00 2400.00 2500.00 2600 00 4400.00 I 4500.00 4600.00 4700.00 4800.00 4900.00 10.00 12.00 14.00 16.00 18.00 20.00 2200 35.72 35.51 35.39 35.37 35.45 35.63 355.38 355.38 355.38 355.38 355.38 _355.38 355 38 1997.46 2095.62 2193.05 2289.64 2385.27 2479.82 257317 43.38N 62.40N 84.82N 110.62N 139.76N 172.21N 207 93N 1189.71N 1247.93N 1305.79N 1363.24N 1420.20N 1476.60N 3.51W 5.04W 6.85W 8.94W 11.29W 13.92W_ 1680W 94.70W 94.54W I 90.91W ¡--- 83.81W I 73.26W 59.26W I 2.00 2.00 2.00 2.00 2.00 2.00 200 2.00 2.00 2.00 2.00 2.00 2.00 42.66 61.36 83.41 108.77 137.43 169.34 204 46 1170.07 1227.89 1285.78 1343.66 1401.47 1459.13 228009.80 I 2191051.82 228011.27 i 2191110.01 I 228016.20 I 2191167.78 228024.591!191225.05 228036.41 2191281.75 228051.67 2191337.82 358.46 1.87 5.32 8.77 12.22 15.65 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Kuukpik #5 738.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 6.82 degrees Bottom hole distance is 5657.81 Feet on azimuth 6.82 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . UNOCALe UNOCAL, HV #7 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska Wellpath (Grid) Report MD[ft] Ilnc[deg] Azi[deg] I TVD[ft] I Station Station Position(Y) Position(X) 5000.00 I 35.~ 19.04 i 4562.28 ,1532.37N 41.84W 5028.68 I 36.00 20.00 I 4585.50 I 1548.24N 36.22W 5100.00 36.00 20.00 4§43.20 --l_1587.63N 21.88W __~ZOO.ºQ~. __~M.o_____ 2Q.QQ______Æ21,1Q. __164Z.lllil'! -.1.77W_ 5300.00 36.00 20.00 4805.00 1698.10N 18.33E _ 5400,ºº----- 36.00 20.00 4885.90 1753.33N 38A3E 5500.00 36.00 20.00 :I! 4966.80 1808.57N 58.54E ¡ 5600.00 36.00 20.00 I 5047.70 1863.80N 78.64E I 5700.00 36.00 20.00 I 5128.61 1919.03N 98.74E ¡' 5800.00 36.00 20.00 i 5209.51 1974.27N 118.85E .---lj900.00 36.00 20.00 --+-- 5290.41 2029.50~138.95E I 6000.00 36.00 20.00 I 5371.31 2084.73N 159.05E ¡ 6100.00 36.00 20.00 I 5452.21 2139.97N 179.16E I' -----º200.00 36.00 20.00 t' 5533.11 2195.20N 199.26E 6300.00 36.00 20.00 _ 5614.02 I 2250.43N 219.36E I 6400.00 36.00 20.00 5694.92 _+ 2305.67N 239.47~-L-- 6500.00 36.00 20.00 I 5775.82 I 2360.90N 259.57E i 6600.00 36.0º---. 20.00 + 5856.72 . 2416.14N _279.67E I -----º700.00 36.00 20.00 I' 5937.62 I 2471.37N 299.78E I 6777.10 36.00 20.00 6000.00 i 2513.96N 315.28E I ____§800.00 36.00 19.89 LÆ>18.52 '2526.61N 319.87E I 6900.00 35.98 19.39 I 6099.44 2581.95N 339.61 E 7000.00 35.96 18.89 ¡ 6180.38 2637.43N 358.87E 7100.00 35.94 18.39 I 6261.33 2693.06N 377.63E 7200.00 35.93 17.89 6342.30 2748.84N 395.90E 7300.00 35.92 17.39 ~23.27 2804.75N 413.68E 7400.00 35.91 16.89~t 6504.2.7 2860.80N 430.96E ----I500.00 35.9Q_ 16.38 6585.26 2917.00N 447.75E_ 7600.00 35.90 1~ 6666.27 2973.32N 464.04E 7700.00 35.90 15.38 6747.27 3029.79N 479.84E 7800.00 35.89 14.88 i 6828.2-ª--- 3086.38N 495.15E ----TIJOO.OO 35.90 14.38 U! 6909.29 3143.11 N 509.96E ---ªQOO.OO 35.90 13.88_ 6990.30 3199.97N 524.27E 8100.00 35.91 13.38 7071.30 3256.96N 538.09E 8200.00 35.91 12.88 i 7152.30 3314.08N 551.41E 8300.00 35.92 12.38 II 7233.28 3371.32N ~64.23E 8400.00 35.93 11.88 7314.26 3428.69N 576.56E 8500.00 35.95 11.38 I 7395.22 3486.18N 588.38E 8600.00 35.96 10.88 I 7476.17 3543.79N 599.71E 8700.00 35.98 10.38 I 7557.10 3601.53N 610.54E 8789.49 36.00 9.93. 7629.50 3653.29N 619.82E 8800.00 36.00 9.88 7638.01 3659.38N 620.88E ~OO.OO 35.96 9.38 7718.93 3717.30N 630.71E _9000.00 35.9~ 8.ß-ª--. 7799.88 3775.26N 640.02E _~100.00 35.91 8.38 ~0.87 3833.26N 648.83E 9200.00 35.88__ 7.88 7961.88 3891.30N 657.13E 930000 3586 739 8042.91 3949.37N 664.91E ~8 4007.48N 672.18E 5.06 4065.61N ---ºl8.94E 6.16 4123.78N 685.20E 7.28 _ 4181.98N 690.93E 9400.00 35.83 6.88 181 9500.00 35.81 6.38 I 820 9600.00 35.80 5.88 I 828 9700.00 35.78 - 5.38 ~6 . PROPOSAL LISTING Page 3 Well bore: HV #7 Well path: HV #7 Vers#4 Date Printed: 9-Jun-2004 Dogleg Severity\ Vertical -I Sectionfftl I 2.00 1_1516.57 2.00 ,1533.00 0.00 [1573.82 __Q.OQ_.__l§31J!4___ 0.00 I 1688.27 0.00 1---1745.50 0.00 ,1802.73 0.00 I 1859.96 0.00 1917.19 0.00 I 1974.42 0.00 ~031.65 0.00 I 2088.88 0.00 i 2146.11 0.00 i 2203.34 0.00 II 2260.56 0.00 2317.79 0.00 ~375.02 O.O~ 2432.25 0.00 I 2489.48 I 0.00 ,2533.61 0.29 2546.71 0.29 2604.01 0.29 2661.38 0.29 2718.85 0.29 2776.39 0.29 ----ª!34.02 0.29 2891.73 0.29_ 2949.52 0.29 3007.38 0,29 3065.~ 0.29 3123.&. 0.29 3181.42 0.29 ~9.58 0.29 3297.80 0.29 3356.10 0.29__ 3414.46 0.29 3472.88 0.29 3531.37 0.29 3589.92 0.29 3648.53 0.29 3701.03 0.29 3707.20 I 0.29 376~ t---------º.,~I 3824.54 1 0.29 +-3883.17 0.29 3941.78 0.29 4000.37 0.29 . I 4058.93 0.29 -+--- 4117.46 0.29 I 4175.96 0.29 I 4234.42_ I [ I ~ .i. 'WI. INTEQ Easting I Northing 228070.34 I 2191393.19 ~ 228076.32 I 2191408.93 I 228091.54 .-i---- 2191447.99-----1 __22ß1J2.8L-¡--_21915Q2.7(L' 228134.21 ! 2191557.53 I 228155.55 2191612.2Lj 228176.89 2191667.06 I 228198.23 2191721.83 228219.56 2191776.60 228240.90 2191831.36 228262.24 2191886.13 228283.58 2191940.90 228304.91 2191995.67 228326.25 2192050.44 228347.59 2192105.20 228368.93 2192159.97 228390.26 2192214.74 228411.60 2192269.51-1 228432.94 2192324.27 i 228449.39 2192366.50 I 228454.26 2192379.05 I 228475.24 2192433.93 I 228495.74 2192488.97 I 228515.74 2192544.16 i 228535.26 2192599.51 228554.29 2192655.01 - 228572.82 ! 2Ú¡2710.66 228590.8LL 2192766.4º---- 22860ß,42 I 2192822.41 ' 228625.48 I 2192878.50 228642.06 . 2192934.74 228658.1~2192991.12 228673.72_ 219304~ 228688.81 2193104.31 228703.41 2193161.11 228717.51 2193218.05 228731.12 2193275.13 228744.24 2193332.34 I 228756.86 2193389.68 ·1' 228768.98 2193447.15 228779.41 219349~ 228780.61 2193504.76 I 228791.74 2193562.44 I 228802.35 2193620~ 228812.46 2193677.97 i 228822.05 2193735.80J! 228831.14 .2193793.68 228839.71 2193851.61 I 228847.78 2193909.58 I 228855.33 2193967.59 I 228862.37 2194025.65..J All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Kuukpik #5 738.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 6.82 degrees Bottom hole distance is 5657.81 Feet on azimuth 6.82 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated · e UNOCALe UNOCAL, HV #1 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 4 Wellbore: HV #1 Well path: HV #1 Vers#4 Date Printed: 9-Jun-2004 .¡. BAKER HUGHES INTEQ Well path (Grid) Re ort I MD[ft] Ilnc[deg] Azí[deg] TVD[ft] Station II' Dogleg severi~. Vertical Easting I Northing II Position(X) . I Sectionfftl L _980.0.0.0] 35.77 4.88 i 8448.41 696.16E I 0..29 I 42~2.86 228868.91 LJ194o.83.74 ¡ 990.0..0.0. i 35.76 4.38 I 8529.56 7o.o..87E i 0..29 I 4351.25 228874.931 2194141.87 i _10.000..0.0 ¡ ~L_...ÂIU--+ 8610..71 ,4356.73N 7o.5.o.8E I 0.29 I 4409.62 228880..44 I 21942o.o..o.~ __1JJ10º.Qº--+__~g.J1__~__~~L_L 8691.88 . 4415.o.3N 708.77E i 0.29 : 4467.94 228885.43 ¡ 2194258.23 ' 10200..00. í 35.73 2.87-ã773~05-r 4473-.35N-- - -'¡:¡1.94E-T--·O.29- -T-4526.22~- -228889.9i-¡ -2194316.46-=- ---.--1º-3o.O.OJJ_+_ 35.73____ 2.36 8854.22 ~31.6ßl'L....._m..§~+----_0.29__ I_A584.4Q... 228893.89 2194374.72_~, 1040.0.00 í 35.73 1.86 8935.40 I 459o..o.4N 716.76E! 0..29 ì 4642.66 228897.35 2194433.0.2' 10.50.0..00. I 35.73 1.36 90.16.58 i 4648.41N 718.4o.E I 0..29 I 4700..82 22890.0..30. 2194491.34 10.60.0..00. I 35.73 0.85 90.97.75: 4706.80N 719.53E II 0.29 i 4758.93 22890.2.74 2194549.69 1070.0.00. I 35.74 0..35 9178.93 I 4765.2o.N 72o..14E I 0.29 'I 4816.99 22890.4.67 219460.8.0.6 I 1080.0..0.0. t- 35.75 359.85 9260.0.9 I 4823.62N 72o..25E L_...JU9 4875.0.1 22890.6.0.8 2194666.45 .J 10.90.0..0.0. I 35.76 359.35 9341.25 4882.04N 719.84E]- 0..29 I 4932.97 228906.98 2194724.87 I 110.00..0.0. I 35.77 358.84 9422.3~ 4940.48N 718.91E I 0.2~ 4990..88 22890.7.37 2194783.31 I ......11100..0.0. I 35.78 __358.34 950.3.53 I 4998.92N 717.48E H29 I 5048.74 228907.24 2194841.77 ~ 11200..00 I 35.80 357.84 9584.65 I 5o.57.37N 715.53E i 0.29. I 510.6.54 228906.61 219490Q~ 11300.0.0 I 35.81 357.34 9665.75, 5115.82N 713.o.7E I 0.29 I 5164.29 22890.5.46 2194958.73 I 1140o.j)(¡-¡ 35.83 356.84 I 9746.83 II' 5174.27N_ 71o..o.9E I 0.29 I 5221.98 22890.3.80._ 21950.17.24 I 11500..00 35.86 356.34 ~ 9827.89 5232.73N 7o.6.61E I 0.29 I 5279.60. 228901.62 21950.75.76· ---.11600.00 35.8ª----_ 355M...... I 9908.92 I 5291.18N 7o.2.61E + 0.29 +- 5337.17 228898.94 2195134.29 1170.0.0.0. 35.91 355.34 I 9989.93 I 5349.64N 698.1o.E I 0..29 'I 5394.68 228895.74 2195192.83 1180.0..0.0 j 35.93 354.84 I 10.0.70..92 I 5408.o.9N 693.08E [ 0.29 5452~ 228892.03 2195251.37 1190.0..0.0 35.96 354.34 10.151.87 I 5466.53N 687.54E I 0.29 I 5509.49 228887.81 219530.9.93 1200.0..0.0. 36.0.0. 353.84 10232.79' 5524.97N 681.49E II 0..29 i 5566.80 228883.07 2195368.49 1200.8.91 36.0.0. 353.80 10.240..0.0 553o..18N 680.93E 0..29 I 5571.90 228882.63 2195373.70. 12100.00. 36.00 353.80. 10313.70 5583.41N 675.15E I 0.0.0 I 5624.0.7 228878.04 2195427.05 ---.12158.91 36.0.0. 353.80. 10.361.35 5617.83N 671.41E I 0.0.0. I 5657.81 n8875.07 2195461.55 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Kuukpik #5 738.5ft above mean sea level) Vertical Section is from o..o.ON O.o.o.E on azimuth 6.82 degrees Bottom hole distance is 5657.81 Feet on azimuth 6.82 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated .. . . UNOCALe UNOCAL, HV #7 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 5 Wellbore: HV #7 Wellpath: HV #7 Vers#4 Date Printed: 9..Jun-2004 .¡. BAKER HUGHES INTEQ ~~~ I MDrftl I TVDrftl Northfftl Eastfftl I Comment I 1000.00 I 1000.00 O.OON O.OOE! 13 5/8" Casino Pt. . 1500.00 . 1500.00 a.DON O.OOE~OP ---- i 3300.00 I 3183.88 545.35N 44.07W i EOC ! _ 4308.7L 4000.00 1136.37N 91.83W --195/8" Caslllil£'L-_________ ___ .-J 4308.78 1 4000.00.. 1136.37N. . . 91.83W ..: BegLn 2/100 curve ___________ __________________ _____________ --5028.68-'-4585:50 ---1548~i¡N- ----3€i.22W--iEÜC --- ---- 6777.10 6000.00 2513.96N 315.28E iBeoin Walk to left 8789.49 7629.50 3653.29N 619.82E IT70 Taroet 12008.91 10240.00 5530.18N 680.93E I¡TDTaroet-EOC 12158.91 10361.35 5617.83N 671.41E TD - 7" Casino Pt. Hole Sections J Diameter Start Start Start Start Wellbore lInJ MDft NorthfftJ Eas ft EastfftJ 16.000 0.00 O.OON O.OOE O.OOE HV#7 --1 12 1/4 1000.00 O.OON O.OOE 91.83W HV#7 --------1 81/2 4308.78 1136.37N 91.83W 671.41E HV#7 Casinas Name Top Top Top Top Shoe Shoe ¡Shoe Shoe Wellbore MDfftJ TVDfftJ NorthfftJ Eastfftl MDfftl TVDfftl NorthfftJ EastfftJ 13 5/8in Casino 0.00 0.00 O.OON O.OOE 1000.00 1000.00 I O.OON O.OOE HV#7 9 5/8in Casino 1000.00 1000.00 O.OON O.OOE 4308.78 4000.00 1136.37N 91.83W HV#7 7.000in Casino 4308.78 4000.00 1136.37N 91.83W 12158.91 10361.35 I 5617.83N 671.41E HV#7 Taraets Name I TVDrftJ -I Latitude Lonoitude I Eastino I Northino I Last Revised HV#7 DeepTgt 8225.50 N60 0 1.36 W151 28 52.84 228844.00 I 2195099.00 15-Jan-2004 Rvsd I I 7 -June-04.5:00pm 1 I I HV#7 T70 Tgt 3677.01N 548.85E I 7629.50 N59 59 45.82 W151 28 54.80 228709.00 2193524.00 15-Jan-2004 Rvsd I I I 7 Jun05.5:oopm I I HV#7 TD Tgt RVSdl 5190.81N 922.98E I 10240.00 N60 0 0.73 W151 2847.44' 229117.00 I 2195029.00 I 15-Jan-2004 7 June04.5:00pm All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Kuukpik #5 738.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 6.82 degrees Bottom hole distance is 5657.81 Feet on azimuth 6.82 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated , If' Unocal Alaska Business Unit South Kenai Gas Project Happy Valley Well #7 ~~~Ji" UNOCAL~ Drill & Case Grass Roots Gas Well Install cellar for'containmentwl 18 518" conduétor string Prepare pad & install liner, tankage & benns Turnkey rig move on same,pad (includes riserlflowline nipple up) 4 ~i9 Acceptance. Hold pre-spud & HES meetings. 5 Mix mud, RU pipe handling equipment, etc. ~ -.......-" -. ...........:::.:{:.- "'-'>".,- .,..?',"': . '40 . ,'. .' ........ . 41 ..' " . , 42 --, .: . ';,'. .,..... . . ' ,'. . ,43.' , ' . :.. , .,C. "'.'c. . "'f~Y,,... '! _.LTc 1..IO:''1[ ':"c 47 , .; 48 ,.49, {x.: '51 .:c!i2 ., f~'" 54 RIH wI 3 1/2" completion tubing & injection nipple 55 Space out & land the completion 56 ND BOPE 57 NU & test tree 58 Clean rig & pits, release rig General Procedure.xls Page 1 of 1 4/1 9/2004 HAPPY VALLEY #7 PLAN DAYS VERSUS DEPTH ,~., ~..~. UNOCAL€Ø tOOO 2000 3000 4000 soon - ..... Q.ì ~ -- 6000 .c ...... Q... Q 7000 8000 9000 10000 1 J 000 ¡2000 o J3000 I·"'~ o , ... .~ ~ ... - '- . - , , 10 20' - - - - - - · 15 Time (Days) 15 Happy Valley #2 Happy Valley #1 Happy Valley #4 Happy Valley #3 .... ""n _,.._......._1. .,."..... Happy Valley #5 - - Happy Valley #7 AFE 1 " ....,,_......... I, ..........., .... Location: X=228,097.43 E, Y=2,189,852.69 N La!: 59° 59' 09.545" N, Long: 151° 29' 05.208" W 1312'FSL, 1170'FEL,Sec22, T2S,R13W, S.M. ¿.... ?i KOP @ 1500' 2°/100' BUR V 3380' MD ^ .....~ >it~ ::::L 1 ,.,............. ............"'. 12 pi........... ~::::::::::: 1 ::::::::::: K::::: '-. . UNOCALe RKB = 22.5' AGL GL = 716' AMSL RKB elevation = 738.5' AMSL Happy Valley #7, Kenai Peninsula ....l Si{ 185/8" 96.79 ppt 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 w/350' 15.8 ppg G tail & 682' 12.8 ppg extended G lead 133/8" 68 ppt K-55 BTC. from 0' -1032' MD 11032' VD 121/4" hole (plan single new HTC M1X1 bit) Drill wI 9.0 - 9.2 ppg KCI ~ WBM, pore pressure = 0.433 psi./ft gradient (reaming req'd) SteerabJe BHA (MWD only) w/ full gauge string reamer +/-1000' above bit KT '=10 bJ:¡ls based 00 min. acceptable 0.60 psi/ft FG,9.1 ppg MVV,swab kick· Cemented to13 3/8" shoe w/500' 15.8 'G' tail & 2726' 12.8 ppg extended 'G' lead Logging Program - None (Record GR thru casing while POH after logging 8 Whole) Upper Beluga 2500' - 4500' VD Possible Gas I Note: partial lost circulation likely anywhere from +/-1700' VD continuing to +/- ¡ 4200' VD. Refer to mud program for primary 8. contingency plans. ~ 9 5/8" 40 ppf L·80 BTC A.B. Mod from 0' - 4350' MD /4016' VD / Lower Beluga 4500'-: 5800 'VD Po,ssìþÎe gas "," ,., >_ < -::, :H'", '_ - ,'_ _.' <' -:'; ,<:-'->, '-",- :"'-.'.'.-'.'",:., -' Upper Työnek 5800'- 8500' VD Possible Gas KT = 10 bbls based on mìnimu acceptable 0.60 psi/ft FG, 9.3 ppg MW, 0.5 ppg kick intensity Cemented to HMC/ZXP w/ single slurry 12 ppg LiteCrete w/ Gas Block Note: Must bump plug to set HMC packer 50 centralizers ordered. placement to be determined after 100 analvsis NO. DEPTH JEWELRY DESCRIPTION 1. 4,250' 3 %" x 9 5/8" HMC/ZXP (Baker) set @.3000 psi initial, 4OQO 'p!>i. final 2. 2,500' 3 %" 9.2 ppf IBTC box/pin CI Nipple (Baker). 2.887" ID 4.775" 00 10m H valye dual checks, 2500 psi rupture disc Logging Progrm: .' ..-.. . (1) Schlumberger quint-combo IND-DEN-NEU-SON-NGT -CMR on E-líne .. (2) Schlumberger MSCT (mechanical sidewall coring tool) (3) Schlumberger MOT on E-line .............- " V Single Target ::::::::::::: T-70 Sd@ 8500' V[f::::::::~ X= 229,153 :{{{ Y=2,194,239 ;:::::::::::: rectangle . {{:) .............. ^ No càntrol to TO ;:::::::::::: (droP .ngl. ideaJ1;,lr( 3 %" 9.2 ppf L-80 IBTC SCC A.B. Mod from 0' to 12,330' VD /10,590' MD Planned TD 12,330' MD /10,590' VD Static BHT = 36.8°F + (0.0136 x TVD) Job Template #1 REVISED: 04/16/04 DRAWN BY: JFB . . .;;¡,¡¡ UNDCAL€Ø 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 psi/ft 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 +1-3 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 MAS.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 31/2" 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 ToO. = 10,590' VD x 0.447 = 4734 psi MAS.P. (tbg leak at surface) = 4734 psi - (0.096 psi/ft * 10,590 ft) = = 3717 psi /~ M.A.S.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 MAS.P. during drilling = 3630 psi - (.08 psi/ft x 4016 ft.) = = 3309 psi * highest observed FG at +1-4016' VD in Happy Valley area to date MAS.P. While Drilling 121/4" hole at 4,350' MD: Max. Est. Frac pressure at 13 3/8" shoe = 1032 ft. x 1.15 psi/ft** = = 1187 psi MAS.P. during drilling = 1187 psi - (.08 psi/ft x 4016 ft.) = = 866 psi ** highest observed FG at +1-1032' VD in Happy Valley area to date ~.~~IC. UNOCAL€Ø Calculation & Casing Design Factors Happy Valley Well #7 Kenai Peninsula, Alaska WELL: Happy Valley #7 FIELD: South Kenai Gas DATE: 19-Apr-04 Sect. 1 16" hole MUDWT. 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 / WEIGHT TOP OF STRENGTH DESCRIPTION W/OBF SECTION TENSION SECTION CASING BOTTOM TOP LENGTH WT. GRADE THREAD LBS LBS 1000 LBS 1 133/8" 1,032 0 1032 68 K-55 BTC 70,176 70,176 1300 TVD 1,032 0 2 95/8" 4,350 0 4350 40 L-80 BTC-mod 174,000 174,000 979 TVD 4,016 0 3 31/2" 12,330 0 12330 9.2 L-80 IBT-mod 113,436 113,436 207 TVD 10,590 0 DESIGN BY: Jerry Bowen COLLAPSE COLLAPSE "..--.... -- PRESS @ RESIST. MINIMUM WORST CASE BOTTOM wlo TENSION WORST CASE MASP YIELD WORST CASE SF TENSION PSI' PSI SF cOLL. PSI" PSI SF BURST 18.52 454 1,950 4.29 866 3,450 3.98 5.63 1,767 3,090 1.75 3,717 5,750 1.55 1.82 4,660 10,530 2.26 3,717 10,160 2.73 .. See attached sheet for calculation of MASP . Collapse pressure is calculated; Normal Pressure Fluid Gradient for external stress (.44 psilft) and the casing evacuated for the internal stress (0 psilft) 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. , , . . Happy Valley Measured Frac Gradients Frac Gradient (psi/ft) ii Î :" :iI UNOCALe o . HV #1 · HV #2 HV#3 HV#4 x HV #5 . HV #6 2 1000 5000 = 2000 - J: .. Co Q) c 3000 - co (,) .- 1:: ~ 4000 6000 . . UNOCAL "ill' BAKIR HUGHES 1,'¡Tf:Q-------· HV#7 HV#7 HV#7 UNOCAL(i> Location: Field: Installation: WELL PROFILE DATA Kenai Peninsula. Alaska South Kenai Gas Field Happy Valley Slot: Well: Wellbore: / Created by: Plamer Date plotted: 16-Apr-2004 Plot reference is HV #7. Ref well path is HV #7 Vers#3. Coordinates are in feet reference HV #7. True Vertical Depths are reference Rig Datum. Measured Oepths are reference Rig Datum. Rig Oatum: Kuukpik #5 Rig Datum to mean sea level: 738.50 ft. Plot North is aligned to TRUE North. Point MD tne Azi 1VD North East degl100ft 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 BuildfTurn 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 ofTum 5286.40 37.61 27.00 4765.29 1727.09 15.54 2.00 1700.42 End of Hold 6213.65 37.61 Zl.OO 5500.00 2231.40 272.50 0.00 2243.43 End ofT um 1??oo.86 37.61 8.06 8510.16 4412.55 961.47 0.30 4514.13 End of DropfTum 10292.02 34.70 6.60 8745.23 4582.88 983.48 1.04 4685.60 End of DropfTum 10563.18 31.79 5.15 8988.73 4741.61 999.88 1.04 4844.85 End of DropfTum 10874.35 28.88 3.69 9240.01 4888.18 1011.29 1.03 4990.81 End of DropITum 11165.51 25.96 2.24 9498.44 5022.05 1018.31 1.03 5123.69 End of DropfTum 11456.67 23.05 0.78 9763.34 5142.77 1021.57 1.02 5242.94 End of DropfTum 11747.83 20.14 359.32 10034.04 5249.91 1021.76 1.02 5348.28 End of DropfTum 12039.00 17.23 357.87 10309.83 5343.15 1019.57 1.01 5439.52 T.D. & End of DropfTum 12330.16 14.32 356.41 10590.00 5422.18 1015.71 1.01 5516.50 Scale 1 em = 200 ft East (feet) -> -800 -400 400 800 1200 -0 ¢:: 0 0 -BOO <T II E u 0 () ro u Cf) BOO 1600 2400 - 3200 - () () - - 4000 .c: - c. () C 4800 n:s (J :e 5600 () > () 6400 ::s '- t- I V 7200 8000 8800 9600 10400 11200 e 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 DropfTum T arge' HV#5 Tgt Rvsd 22-Mar-04,4:30pm -.. 9 518" Casing Pt. 36.60 36.95 EOC OLS: 0.30 deg/100ft 37.24 Begin Walk to left 37.23 37.26 37.32 EOC 37.41 37.53 HV#5 Tgt Rvsd 22-Mar-04,4:30pm Target Begin OropfTum 33.62 ì-r 29.62 9 518" Casing Pt. 22.62 19.62 16.62 EOC HV#5 TD Tgt Rvsd 23Mar04 TD - 7" Casing Pt. 135/8" Casing Pt. , . r KOP ~ ~ 600 ~ ~ 3200 4000 4800 5600 6400 Scale 1 em = 400 ft Vertical Section (feet) -> Azimuth 11.15 with reference 0.00 N, 0.00 E from HV #7 1600 6400 6000 5600 .. 5200 4800 4400 4000 3600 ^ 3200 . Z 0 ;:¡ 2800 ::T - ct CÐ - 2400 - 2000 1600 1200 800 400 (j) £ ëD 0 () 3 II -400 N 0 0 ;:¡, .. .. 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 37.61 5489.02 228413.17 2223.87N 0.00 66 37.61 5500.00 228417.18 2231.40N 0.00 67 37.58 5568.26 228441.91 2278.32N 0.30 68 37.54 5647.53 228470.16 2332.95N 0.30 69 37.50 5726.84 228497.92 2387.77N 0.30 70 37.47 5806.19 228525.19 2442.78N 0.30 71 37.44 5885.57 228551.97 2497.97N 0.30 72 37.41 5964.99 228578.25 2553.34N 0.30 73 37.39 6044.43 228604.03 2608.90N 0.30 74 37.36 6123.90 228629.33 2664.63N 0.30 75 37.34 6203.40 228654.12 2720.54N 0.30 76 37.32 6282.92 228678.42 2776.63N 0.30 77 37.30 6362.45 228702.22 2832.89N 0.30 78 37.28 6442.01 228725.53 2889.32N 0.30 79 37.27 6521.58 228748.33 2945.93N 0.30 80 37.26 6601.17 228770.64 3002.70N 0.30 81 37.25 6680.76 228792.45 3059.65N 0.30 82 37.24 6760.37 228813.75 3116.76N 0.30 83 37.24 6839.98 228834.56 3174.03N 0.30 84 37.23 6919.60 228854.86 3231.47N 0.30 85 37.23 6999.22 228874.66 3289.07N 0.30 86 37.23 7078.84 228893.96 3346.83N 0.30 87 37.23 7158.46 228912.76 3404.75N 0.30 88 37.24 7238.07 228931.05 3462.83N 0.30 89 37.25 7317.68 228948.84 3521.06N 0.30 90 37.26 7397.28 228966.12 3579.45N 0.30 91 37.27 7476.87 228982.90 3637.98N 0.30 92 37.28 7556.44 228999.17 3696.67N 0.30 93 37.30 7636.00 229014.93 3755.50N 0.30 94 37.32 7715.54 229030.19 3814.49N 0.30 95 37.34. 7795.06 229044.94 3873.61N 0.30 96 37.36 7874.56 229059.19 3932.89N 0.30 97 37.38 7954.03 229072.92 3992.30N 0.30 98 37.41 8033.48 229086.15 4051.85N 0.30 99 37.44 8112.90 229098.87 4111.55N 0.30 100 37.47 8192.29 229111.08 4171.37N 0.30 101 37.50 8271.64 229122.78 4231.34N 0.30 102 37.53 8350.96 229133.97 4291.44N 0.30 103 37.57 8430.24 229144.65 4351.67N 0.30 104 37.60 8500.00 229153.63 4404.80N 0.30 105 37.61 8509.48 229154.82 4412.03N 0.30 106 37.61 8510.16 229154.90 4412.55N 0.30 107 36.62 8589.22 229164.38 4471.81N 1.04 108 35.62 8670.00 229173.22 4530.27N 1.04 109 34.70 8745.23 229180.71 4582.88N 1.04 110 34.62 8751.80 229181.33 4587.38N 1.04 111 33.62 8834.58 229188.77 4643.13N 1.04 112 32.62 8918.34 229195.55 4697.48N 1.04 113 31.79 8988.73 229200.69 4741.61N 1.04 114 31.62 9003.03 229201.67 4750.41N 1.03 115 30.62 9088.64 229207.18 4801.91N 1.03 116 29.62 9175.14 229212.10 4851.94N 1.03 117 28.88 9240.01 229215.38 4888.18N 1.03 118 28.62 9262.50 229216.44 4900.49N 1.03 119 27.62 9350.70 229220.24 4947.54N 1.03 120 26.62 9439.71 229223.53 4993.06N 1.03 121 25.96 9498.44 229225.40 5022.05N 1.03 122 25.62 9529.49 229226.31 5037.05N 1.02 123 24.62 9620.04 229228.62 5079.47N 1.02 124 23.62 9711.31 229230.51 5120.32N 1.02 125 23.05 9763.34 229231.38 5142.77N 1.02 126 22.62 9803.27 229231.95 5159.58N 1.02 127 21.62 9895.92 229233.03 5197.23N 1.02 128 20.62 9989.20 229233.75 5233.26N 1.02 129 20.14 10034.04 229233.97 5249.91N 1.02 130 19.62 10083.10 229234.12 5267.65N 1.01 131 18.62 10177.58 229234.21 5300.39N 1.01 132 17.62 10272.62 229234.01 5331.48N 1.01 133 17.23 10309.83 229233.87 5343.15N 1.01 134 16.62 10368.19 229233.56 5360.89N 1.01 135 ; 15.62 10464.26 229232.91 5388.62N 1.01 136 ) 14.62 10560.80 229232.07 5414.66N 1.01 137 14.32 10590.00 229231.78 5422.18N 1.01 . . S. Kenai Gas project Happy Valley #7 9-5/8" SHOE DESIGN SUMMARY & SKETCH UNOCALe / 13-3/8" shoe 1,010 ft BML....t (1,032 ft TVD) \ / \ / \ / \ 12·1/4" Hole / \ / \ / \ / \ / \ / - mdb/01decOO METHOD 2: .. - y y A 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 PSIIFT Gas Gr¡;¡dient = 0.02 PSI/FT Drill Pipe = 4.5 INCH 11 13-3/8" shoe .... The shallowest 9-518" shoe depth = 4,003 ft BML or 4,026 ftTVD ~ ~ \ / \ / \ '" / The deepest 12-1/4 in hole \ that can be drilled = / 4,228 ft BML or 4,250 ft TVD \ / \ 8-1/2" Hole / \ / \ / \ / \ TD = 10,568 ft BML or 10,590 ft TVD / METHOD 1: · 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 =\Î_ - \_ UNOCALi' . LEAK OFF TEST ("LOT") PROCEDURE / 1. Clean out the rathole belo the shoe, and drill 20' of new hole. Circulate and condition mud. 3. R/U and test cement lines. 2. Pull the drill string into the hoe. R/U to monitor both drill pipe and drill pipe x annulus pressures. 4. Close the pipe rams and pump down the drillpipe at a slow rate (1/4 BPM). 5. Measure the volume pump d 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 X bbl pumped. 7. Stop pumping and record s ut-in pressure 10 seconds after initial shut-in (Point D). Note: The point "0" sh wn in the attached graph (10-second shut-in) is the value used to calculate LOT. The LOT ( xpressed in equivilent mud weight "EMW") is calculated as follows: LOT = Mud we'ght in hole, ppg + 10-Second Shut-In Pressure. psi (0.052) X (shoe depth TVD, ft) C ~~ SURFACE PRESS. 10 sec. (psi) VOLUME PUMPED (OOlS) NOTES: .. . SHUT -IN-TIME (MIN) Point "A" will have some variance until the system begins to pressure up. Point "B" is the fra ture iniatation pressure. Point "C" is known he injection pressure. Point "D" is fractur c10sure pressure measured 10 seconds after shutting down the pumps. . . Schlumbepgep * Ce m CAD E well cementing recommendation for 13 3/8" Surface Casing Operator Country State Prepared for Proposal No. Date Prepared Prepared by Phone E-Mail Address UNOCAL USA : AK : Jerry Bowen : #1 : 04-16-2004 Chinedu F. Akwukwaegbu (907) 273-1739 CAkwukwaegbu@slb.com ~GN ( <:)~~' t \"~, ~ÚATE Disclaimer Notice: Well Field Happy Valley #7 Happy Valley Location Service Poi nt Business Phone FAX No. Ninilchik Kenai (907) 776-8156 (907) 776-8158 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 pertorm 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 fit 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 MD (ft) 50.0 : Casing : Single : land : 0.0 ft : 1032.0 ft : 80 degF : 16 in Previous String OD Weight (in) (Ibltt) 18 5/8 96.5 ID (in) 17.655 landing Collar MD : 952.0 ft Casing/liner Shoe MD : 1032.0 ft MD (tt) 1032.0 OD (in) 13 3/8 Casing/Liner ID Grade (in) 12.415 K-55 Joint (ft) 40.0 Weight (Ibltt) 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 MD (ft) 0.0 1032.0 2500.0 Frac. (Ib/gal) 15.00 Formation Data Pore Name (Ib/gal) 8.33 Geothermal Temperature Profile TVD Temperature Gradient (ft) (degF) (degF/100ft) QO 80 o~ 1032.0 80 0.0 2500.0 80 0.0 ; 04-16-2004; LoadCase Surtace Casing; Version wcs-cem441_51 . Collapse (psi) 1950 Lithology Sandstone SchilD llerger Burst (psi) 3450 Thread BTC Page 2 - Client Well String District Country loadcase UNDCAl 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 : 199.77Ib/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 MUD PUSH II DESIGN Density Pv Ty Gel Strength . Sc~llIlterger : 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 Pv Ty Gel Strength <,.-<---¡ : ~J;06~' gal/sk ;r1.971t3/sk ~..% Density : 8.32 Ib/gal Function EXTENDER Accelerator ANTI FOAM Schedule ( ) Schedule () 1 00 Bc 571 psi ; 04-16-2004; loadCase Surface Casing; Version wcs·œm441_51 : 12.80 Ib/gal / : 11 .936 cP : 16.99 Ibf/100ft2 : (lbf/100ft2) Job volume: ¢5b1 Quantity : <úill..a'3 sk Solid Fraction:./~· : 24.9 % Base Fluid : 11.064 gal/sk at at 03:05 hr:mn 37:00 hr:mn Page 3 . . Client Well String District Country Loadcase UNDCAL Happy Valley #7 Surface Casing Kenai USA Surface Casing Scillllrger Tail Slurry DESIGN Fluid No: 5 Rheo. Model At temp. : BINGHAM : 80 degF Density Pv Ty Gel Strength : 15.80 Ib/gal : 25.749 cP : 24.73 Ibf/100ft2 : (lbf/100ft2) DESIGN BLEND Name : G Dry Density : 199.77 Ib/ft3 Sack Weight : 94 Ib BASE FLUID Type : Fresh water SLURRY Mix Fluid Yield Porosity ~. 5 al/sk . 1,1Z 3/sk . .2% Job volume : ~4~1 Quantity .: @.D.§r44 sk Solid Fractlo~ : 41.8 % Density : 8.32 Ib/gal Base Fluid : 5.098 gal/sk Additives Code D065 S002 D046 Cone. 0.300 %BWOC 1.500 %BWOC 0.200 %BWOC Function DISPERSANT Accelerator ANTI FOAM Thickening Time Compressive Strength Schedule ( ) Schedule ( ) 100 Bc 2573 psi at at 03:04 hr:mn 24:00 hr:mn Displacement Volume Total Volume TOC Section 3: fluid sequence Original fluid Mud pv: 12.000 cp 142.5 bbl 274.2 bbl O.Oft 8.80 Ib/gal Ty: 12.00 Ibf/100ft2 Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (Ib/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 T y: 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 Csg.Pump 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 Surtace Casing; Version wcs-cem441_51 . . Client Well String District Country Loadcase UNOCAL Happy Valley #7 Surface Casing Kenai USA Surface Casing Sœl..rgør 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 co N o o N o 'V N o ~'" (;; ...... .e, c.. ~ ¡;;:- o co 0_ 'V 0- o 10 , 20 , 30 40 Tim e (m in) , 50 60 I 70 80 Page 5 ; 04·16·2004; loadCase Surface Casing; Version wcs·cem441_51 . . Client Well String District Country Loadcase UNOCAL Happy Valley #7 Surface Casing Kenai USA Surface Casing Sc'llftlrger ECD '<t ~ D e p th = 1 0 32ft '" 'r""" -Frac -Pore - Hydrostatic ~_ _ (tyn~mi(" =æ M_ C>~ g ~ :I <'1- '" ~ '" Q) è: c: ~- ¿ ~ 0 0>- co Time (min) FLOWRATE COMPARISON <'I ~ Fluids at 1032 ft '2 ] :õ .0 "Q;' (D- 1i1 a:: ;:: o u:: o 10 20 30 40 Tim e (m in) I 50 I 60 70 80 Page 6 ; 04-16-2004. Lo,dC,se Surface Casing; Version wcs·cem441_51 . . Schlllmberger * CemCAD E well cementing recommendation for 95/8" Intermediate Casing Operator Country State Prepared for Proposal No. Date Prepared Prepared by Phone E-Mail Address UNOCAL USA AK : Jerry Bowen : #1 : 04-16-2004 Chinedu F. Akwukwaegbu (907) 273-1739 CAkwukwaegbu@sl b.com ~GN ( ,,«?' t \~~/ ~ÙATE Disclaimer Notice: Well Field Location Service Point Business Phone FAX No. Happy Valley #7 Happy Valley Ninilchik Kenai (907) 776-8156 (907) 776-8158 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 nòt to be inferred. . Mark of Schl umberger Client Well String District 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 MD (ft) 1032.0 : Casing : Single : Land : 0.0 ft : 4350.0 ft : 92 degF : 12114 in Previous String OD Weight (in) (Ib/ft) 13 3/8 68.0 ID (in) 12.415 Landing Collar MD : 4270.0 ft Casinglliner Shoe MD : 4350.0 ft MD (ft) 4350.0 OD (in) 95/8 Casing/Liner ID Grade (in) 8.835 L-80 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 MD (ft) 0.0 1032.0 4350.0 4400.0 Frac. (psi/ft) 0.700 Formation Data Pore Name (psi/ft) 0.433 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 ; 04-16·2004; LoadCase Intermediate Casing la); Version wcs·cem441_S1 . Collapse (psi) 3090 Lithology Sandstone Scil.llrger Burst (psi) 5750 Thread BTC Page 2 Client Well String Distri ct Country Loadcase '" UNOCAL Happy Valley #7 Intermediate Casing Kenai USA Intermediate Casing (a) .. lil_.rger Section 2: fluid description Mud DESIGN Fluid No: 1 Density : 9.20 Ib/gal Rheo. 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 Rheo. Model At temp. Fluid No: 4 Rheo. 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 Conc. 0.200 %BWOC 2.000 %BWOC 0.800 %BWOC 0.750 %BWOC Thickening Time Compressive Strength MUDPUSH II 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 : (lbf/100ft2) SLURRY Mix Fluid Yield Porosity ~. ...66' gal/sk . 1.9 ft3/sk . :7% Job volume ;.)88. . ß)bl Quantity ~~1..B3 sk Solid Fraction~/ : 25.3 % Density Base Fluid : 11.067 gal/sk : 8.32 Ib/gal Function ANTI FOAM EXTENDER FLUID LOSS Accelerator Schedule 9.4-.1 Schedule () 70 Bc 922 psi at at 03:30 hr:mn 24:00 hr:mn Page 3 ; 04-16-2004; loadCase Intermediate Casing (a) ; 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 UNOCAL Happy Valley #7 Intermediate Casing Kenai USA Intermediate Casing (a) Fluid No: 5 Rheo. 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 Code D167 D065 D046 Conc. 0.400 %BWOC 0.300 %BWOC 0.200 %BWOC Thickening Time Compressive Strength Displacement Volume Total Volume TOC . Sil..rg8r Tail Slurry DESIGN Density Pv Ty Gel Strength : 15.80 Ib/gal : 72.013 cP : 10.82Ibf/100ft2 : (lbf/100ft2) SLURRY Mix Fluid Yield Porosity :~1 9 '/sk : .16 /sk : . % Job volume ~. 3 . Obi Quantity : 91 sk Solid Fractio : 41.4 % Density Base Fluid : 5.091 gal/sk : 8.32 Ib/gal Additives Function FLUID LOSS DISPERSANT ANTI FOAM Schedule 9.18- 4 Schedule ( ) 04:38 hr:mn 1 00 Bc at 2351 psi at 18:30 hr:mn 9.20 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 83.7 613.5 8.32 viscosity:5.000 cp MUDPUSH II 20.0 334.8 697.2 10.50 pv:16.000 cP Ty:16.00 Ibf/100ft2 Lead Slurry 188.6 2818.0 1032.0 12.80 pv:31.504 cP T y:33.84 Ibf/100ft2 Tail Slurry 39.5 500.0 3850.0 15.80 pv:72.013 cP Ty:10.82Ibf/100ft2 Mud 323.8 0.0 9.20 pv:12.000 cP Ty:12.00 Ibf/100ft2 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 Oistri ct Country Loadcase UNOCAL Happy Valley #7 Intermediate Casing Kenai USA Intermediate Casing (a) SillDberger Section 4: pumping schedule Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbVmin) (bbl) (min) (bbl). Temp. (degF) Fresh Water 5.0 5.0 t.O 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 0, g 1'- Well Head Pressure -Acquired WHP I o 0- (0 , 25 50 , 75 Time (min) , 100 125 150 o o " o 0- Lf) ëñ B8~ C--<r I s: 8- M o o- N o o ..... 0- o Page 5 ; 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) Se'llIlrger ECD '¢ D e p th = 4 3 50ft M_ ~ N_ ~ (ij .!2' g 0) 5 II) II) 0) a: c:: ~ 0_ ~ 0')- co Time (min) FLOWRATE COMPARISON 0') Fluids at 4350 ft ê ~ ..c 1.0- e- O) (¡j a:: ~ ¡¡: o 25 50 75 Time (min) 100 I 125 15 Page 6 : 04-16-1004: loadCase Intermediate Casing la): Version wcs·cem441_51 . . Schlumberg8P * Cern CAD E well cementing recommendation for 3.5" Production Casing Operator Country State Prepared for Proposal No. Date Prepared Prepared by Phone E-Mail Address : UNOCAL : USA : AK : Jerry Bowen : #1 : 04-16-2004 Chinedu F. Akwukwaegbu (907) 273-1739 CAkwukwaegbu@slb.com ~,GN ( ,,«l ~ .,~ ~. , '~ \.'~ ,~lJATE . Well Field Happy Valley #7 Happy Valley Location Service Point Business Phone FAX No. Ninilchik Kenai (907) 776-8156 (907) 776-8158 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 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 ond should be used tor comparison purposes rather than absolute values. ¡ he quality ot input data, and hence results, may he improved through the use of ce'1ajn tests and procedures which Schlumbe'ge, 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 ollly and are good for 30 days f,om the date of issue. ,\ctual 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 infelled. · Mark of Schlumberger Clíent Well String Distri ct Country Loadcase . UNOCAL Happy Valley #7 3.5 Kenai USA Production Casing (a) Section 1: well description Configuration Stage Rig Type Mud Line Total MD BHST Bit Size MD (ft) 4350.0 : Casing : Single : Land : 0.0 ft : 12330.0 ft : 181 degF : 8 1/2 in Previous String OD Weight (in) (Ib/ft) 9 5/8 40.0 ID (in) 8.835 Landing Collar MD : 12250.0 ft Casing/liner Shoe MD : 12330.0 ft MD (ft) 12330.0 OD (in) 3 1/2 Casing/Liner ID Grade (in) 2.992 L-BO Joint (ft) 40.0 Weight (Ibltt) 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 MD (ft) 7500.0 12340.0 MD (ft) 0.0 1032.0 4400.0 12330.0 12340.0 Frac. (psi/ft) 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 1æ2~ M o~ 4056.1 93 0.3 10589.7 181 1.0 10599.4 181 1.0 . Collapse (psi) 10530 Lithology Sandstone Sandstone HVj7 _REVj'1.ctw; 04·16·2004; loadCasc Pmdoction Casin'J {aJ; Versi"(I wcs-.cem441_51 Scilmnnrger Burst (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 Rheo. Model At temp. : NEWTONIAN : 80 degF Fluid No: 3 Rheo. Model At temp. : BINGHAM : 80 degF Fluid No: 4 Rheo. Model At temp. : BINGHAM : 80 degF DESIGN BLEND Name : 12# LiteCRET Dry Density : 112.13 Iblft3 Sack Weight: 1511b BASE FLUID Type : Fresh water Additives Code 0047 D600G 0065 D800 C359 Cone. 0.161 gallsk blend 2.415 gallsk blend 0.750 %BWOC 0.200 %BWOC 0.025 %BWOC Thickening Time Compressive Strength Fluid No: 5 Rheo. Model At temp. : NEWTONIAN : 80 degF Density Viscosity Job volume MUDPUSH II DESIGN Density Pv Ty Gel Strength Job volume LiteCRETE DESIGN SLURRY Mix Fluid Yield Porosity ~§<8.15.. 'al/sk "/2.4 3/sk : .0% Density Pv Ty Gel Strength 100 Bc 2863 psi #4 Base Oil DESIGN . Scilllllllrger : 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 : 56þf2 bbl Quantity :1283;78 sk Solid Fraction~ 55.0 % Base Fluid : 5.739 gal/sk at 03:51 hr:mn Density : 8.32 Ib/gal at 44:00 hr:mn Density : 7.40 Ib/gal Viscosity : 4.000 cP Job volume : 106.5 bbl HV_ï7 _REV_#1.cf~v; 04-16~2004; l(iadCa~ Produc.tion CasiJ1'J ,aJ ;\i~($iOfi w.;:s<em44'1_51 Page 3 Function ANTI FOAM GASBLOK DISPERSANT RETARDER Víscosifier Schedule 9.20- 2 Schedule () . . Client Well String District Country loadcase UNOCAl Happy Valley #7 3.5 Kenai USA Production Casing (a) Scillmllrger Section 3: fluid sequence Original fluid Mud Pv: 12.000 cP 106.5 bbl 746.8 bbl 4250.0 ft 9.50 Ib/gal Ty: 12.00 Ibf/100ft2 Displacement Volume Total Volume TOe CW 100 MUDPUSH II liteCRETE #4 Base Oil Volume (bb!) 20.0 55.0 565.2 106.5 Ann. Len (ft) 312.9 860.4 8080.0 Fluid Sequence Top Density (ft) (Ib/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 viscosìty:4.000 cP Ty:16.00 Ibf/100ft2 Ty:12.39Ibf/100ft2 Statíc 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 Inj. Comments (bbllmin) (bbl) (min) (bbl). Temp. (degF) CW 100 5.0 5.0 1.0 5.0 60 Fluid pack lines Pause 0.0 0.0 5.0 0.0 80 3-Pressure Test Lines CW100 5.0 15.0 3.0 20.0 60 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 60 LiteCRETE 5.0 565.2 113.0 565.2 80 9-Start Cement Slurry Pause 0.0 0.0 5.0 0.0 60 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 11.5 106.5 80 37 -Bump Dart Shut-In 0.0 0.0 20.0 0.0 60 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 BHCT Simulated BHCT CT at TOC 141 degF 144degF 111 degF Temperature Results I Simulated Max HCT Max HCr Depth Max Hcr Time 146 degF 11826.7 ft 02:54:14 hr.mn:sc Page 4 HVj-7_REV_f.1.ðw; 04-16-2304; loadGa5Q Produc.tion Casingía}; VCfsítJi wcs-cGm441_51 . . Clíent Well String District Country Loadcase UNOCAL Happy Valley #7 3.5 Kenai USA Production Casing (a) Scilmnberlor WELLHEAD PRESSURE ~ N § .... .!:S. ~ f/) .e, o i 100 Tim e (m in) DIFFERENTIAL PRESSURE @ ZXP PACKER DEPTH = 4250' N .... - Collapse aurst - Pseudo Hydrostatic 0)- - Dynamic 50 ft Fluids at 4251 ft ô 8 .... ~ ïii .e, N .... . Page 5 HVj-7_REV_t1.I:fw; 04·16·2004; lQadCa~(! Production Casmg (a), 'ver5lOr, w¡;s<C?m44 I_51 . . Client Well String District Country Loadcase UNOCAL Happy Valley #7 3.5 Kenai USA Production Casing (a) Scilmnberler ECD :t D e p th = 1 2330 ft ïii '" 1> :::;:.. ~ ::J f/ ~ CL ¿ <:: « (X) o 20 60 120 1 0 160 FlOWRATE COMPARISON ê' ~ .0 a Q) (¡j a:: ! ü: 1 Tim e (m in) CD Page 6 HV_*7 _REV_#1.d~v; 04·16-2004; loadCaM Production CaSIIl<J la;Vt1rsìIJr' wCHGm441_51 . Client Well String District Country Loadcase UNOCAL Happy Valley #7 3.5 Kenai USA Production Casing (a) . Scilmnberger 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. / 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 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 Min. STO (%) @ Depth (ft) 11980.4 12330.0 0.0 60.7 Origin Centralizer Tests Hole Size Running Restoring (in) Force Force (Ibf) (Ibf) N.A. N.A. N.A. 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 o o 0- o :100 ton :0.3 :10 ton :132 ton :152 ton ft % 0- ?n Between Cent. +ftt Cent. o 0_ o 1.0 Pipe Standoff Page 7 HVj7J~EV_#1.d~v; 04~16-2ao4; lQa.jCasc Production Casing (a}; Versior, wcs<em441_51 . Clíent Well Strin 9 District Country Loadcase UNOCAL Happy Valley #7 3.5 Kenai USA Production Casing (a) Section 6: WELLCLEAN II Simulator fI % 0- o o 0- 1,0 o' 0 0- 0 .... . 0 0 o' 1,0 Cement Coverage Fluids Concentrations Risk Mud on the Wall í ¡; í í õ í 2 2 5001) 5001) ~ooo 600G 60(10 700D 700D 7000 -- -- iOOI) ~ iOOI) 11000 ~ ,¡; ,¡; 900G " 900G 90(10 " . . ¡;; ¡;; 10000 10000 J 1000 11000 12000 1~OOO . J Do . J Do .., Q 'e .., Q 'e ;¡ 0 ;¡ ;¡ ~ ;¡ z _ #4 Base Oil High - Low II ~~g~1~ II Medium !:¡:::~:::::::~ None _ r::w 100 . HV_#7 _RH'_#1..:fw; 04-16-2004; loadCasc Production Cash10J (a); Versior- wcs..œm441_51 ScilumHPI8P Page 8 . . Happy Valley Well #7 BOP Stack Diagram Underside of Rotary Table ~ yY Planned Test Pressure 4500 psi // 5/8" Annular Shaffer 5M I",,<"~~, c / ;~'zl 22'6" .. or 270" /' / .. ../ Ground level ../ Drilling spool to be replaced by tubing head & DSA after 9 5/8" casing ~ "" cemented ~. 13 3/8" SOW Bradenhead (starter) wellhead r% '"'"' r'I ~~ I. LJ LJ W¡J 133/8" outlet 18 5/8" non-structural conductor pipe, to be cut above cellar floor after cementing 9 5/8" ----+ 2" thick base Dlate ----+ . 9'0" 2' Skid Base Rig Mat = 6" \ . ... 8' or 96" .. mm--r;;_~ --------- --. » . 2" To Shaker n u 3" Panic n 3 1 /8" U --........(i\ \I/ -(8 2 1/16" \ n Ii G?' ~~--- I r=r ~ 2 1/16" ,'(]:) /~ ~ / 3 1/8" Ii -- " ö) ~ X(L¡ : ~./ . 3" To <?esbuster ---- 2 1/16" ~~ -- //~ n ,i ~¡ c={Ð.c==fþcj)r--{Ð . ~I cerc 'I I 2 1/16" ,~ 2 1/16" t rv1anual Choke 4 ~'" Automatic Choke I 2 1/16" Inlet Pressure Sensor 3" 3" 5,000 PSI Choke M:1nifold Kuukpik Drilling Rig 5 / RED = 3 1/18" 5,000 PSI VALVES AND LINES BLUE = 2 1/16" 5,000 PSI VALVES . . Happy Valley Cuttings Disposal Description for Permit to Drill I' 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 ofthe 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 MC 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 L!íiê·.··RíÎíf=Q;61 Rm.: I2dtation< .........,,:....,::........,...., "{',,·).:"i"·· LOG HEADER: 80.00 5.00 15-2S-13W Deep Ck 1 Sterling 123 22 175 270 0.0066 75.86 62.447 4.84 2.97 1.456 4000 15-2S-13W Deep Ck 1 Sterling 580 18 80 110 0.0066 78.86 62.797 4.67 2.95 1.654 3000 15-2S-13W Deep Ck 1 Sterling 600 15 70 80 0.0066 78.99 62.812 4.67 2.95 1.822 2800 15-2S-13W Deep Ck 1 Sterling 825 22 44 42 0.0066 80.46 62.984 4.59 2.95 1.453 3800 . 15-2S-13W Deep Ck 1 Sterling 1120 22 28 36 0.0066 82.40 63.21 4.49 2.94 1.452 3900 15-2S-13W Deep Ck 1 Sterling 1480 30 18 19 0.0066 84.76 63.485 4.37 2.92 1.125 4600 15-2S-13W Deep Ck 1 Sterling 1700 30 17 15 0.0066 86.20 63.654 4.30 2.92 1.125 4600 15-2S-13W Deep Ck 1 Sterling 2220 30 12 12 0.0066 89.61 64.052 4.15 2.90 1.125 4300 15-2S-13W Deep Ck 1 Beluga 2550 52 22 17 0.0066 91.78 64.304 4.06 2.89 0.563 8000 15-2S-13W Deep Ck 1 Beluga 2810 45 29 19 0.0066 93.48 64.503 3.99 2.88 0.703 6500 15-2S-13W Deep Ck 1 TD 12953 0.0066 160.00 72.263 2.40 2.6 Deep Creek Salinity Calculations Method #2 Rwa Use Rrnf=0.61 Rm Form. Depth Method #2 LocatiOh Well TopMQ SP salinitY ppm Chi LOG HEADER: 80.00 5X)0 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 . 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 160.00 72.26 2.4.0 2.6 10000 9000 8000 7000 E 6000 0. 0. J: U 5000 >a ~ c: ñi 4000 en 3000 2000 1000 0 0 500 1000 1500 2000 2500 3000 Depth Feet Deep Creek Unit #1 Salinity Calculations . . . 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 Apri116,2004 HV #7 v1.0 04/161104 . . I Halliburton BAROID UNOCAL Mud Program Happy Valley Producer I ntroducti on: 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' MO 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 3r angle by section TO 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 W' hole will be directionally drilled (max hole angle of 38°) dropping to 14° by TO at 12,330' MO (-10,590' TVO). A 3 W' production liner will then be run and cemented in place. Spud the well with a 6% KCI/PHPA mud - 8.6 ppg. The mud weight will then be held in the 8.6 - 8.9 ppg mud weight range to the surface hole TO 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 ECO'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 Objectives: · Zero fluid related HSE incidents · Achieve well bore stability · Achieve good hole cleaning considering hole angle, geometry and anticipated ROP rates · Lost circulation mitigation/control · Achieve good Zonal Isolation as per plan · Achieve minimal formation damage in Tyonek sands · Minimize fluids related NPT · Minimize drilling wastes Critical Fluid Issues: · Eliminating/controlling losses in the 1,700' and 4,100' areas. · Maintaining a low ECO 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 2 04/16//04 . . 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 Y;¡" Hole (3 Y;¡" 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 Qtl 8.5-9.0 System Formulation: Product Water KCI KOH Barazan D EZ Mud DP Aldacide G Baracor 700 Barascav D 6%KCI, EZ Mud Concentration 0.905 bbl 20 ppb (30K chlorides) 0.2 ppb (9 pH) 1.5 -2 ppb (as required 35-45 YP) 0.75 ppb 0.1 ppb 1 ppb 0.5 ppb (add as the well spuds) Special Mixing Instructions: . Mix in order as listed . Add polymers slowly to minimize fisheyes. Concerns and ContinQencies Surface Interval - ( 0 - 1,032' MD ) Mud Tvpe: 6 % KCI/PHPA 1. Mud weight: 2. Rheology: 3. Filtrate control: 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 BDF-263 may be required to control screen blinding/bit balling. Seepage losses in this interval can be controlled with additions of 3-5 ppb BAROFIBRE or by dedicated LCM pills but are unlikely to occur. Operations Summary: This section will drill a 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 D to achieve a tauO > 25. HV #7 v1.0 3 04/16//04 . . I Halliburton BAROID UNOCAL Mud Program When penetrating high-clay content sections additions of BDF-263 ester are recommended to reduce the incidence of bit balling and shaker blinding. 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 Wall nut "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' Density 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 Iili 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 04/16/104 . I Halliburton BAROID r 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 andlor 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 5 04/16//04 . . I Halliburton BAROID UNOCAL Mud Program loss and rheology as with the inhibited system. When running the LSNO, stop addtions of Baracor and Barascav 0 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 ECO's on the first bottoms up after TIH. Losses were incurred at - 4,100' TVO 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-t 500 590 100 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 ECO/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 / 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 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 HV#7 v1.0 . . I Halliburton BAROID UNOCAL Mud Program Mud Type: Invermul System Mud Properties Density Viscosity PV YP ES HTHP FL WPS OfW 4350 - 10,000 8.9 - 9.2* 55 - 80 18 - 29 9 -18 1 000- <8 290 to 320K 80/20 1100 10,000- TO 9.2 * 55 - 80 18 -29 9 - 18 1 000- <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 OURATONE RM63 Water CaCI2 AK-70 BAROIO 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: 9.2 ppg INVERMUL System. 1. Mud weight: 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 well bore. Maximize pipe rotation (ideally ~ 100 RPM). 2. Rheology: 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 wellbore. 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 I 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 DURATONE HT / AK-70 filtration mechanism « 8 cc/30 min @ 2000 F to 10,000' then <5cc/30 min @ 2000 to TD). Barablok and Barotrol will also be available to improve the filtration control mechanism. 4. For formation bridging/LCM, graded calcium carbonate (Baracarb(s)), cellulose fiber material (Barofibre) and SteelSeal are available. 5. The electrical stability of the mud should be run in the 1000-1100 volt range with INVERMUL and EZ MUL as the primary and secondary emulsifiers. DRIL TREAT will be available as an effective wetting agent, if needed. 6. Maintain the water phase salinity between 290,000 - 320,000 mg/I range with sack calcium chloride. This level of salinity will provide an effective mechanism for good well bore 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 rheologylECD'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 OFG software for the actual ROP while drilling. The table below highlights the maximum ROP 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 ROP 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, ROP 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 ECO values using the OFG 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//04 . . 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 : ] 6" Surface 24,000 ] 2 v." lntennediate 28,000 8 W' Production (Oil) 46,000 Total $98,000 **The P-SO estimate assumes 800 bbls of reconditioned oil mud to be used. 37,000 6],000 66,000** $164,000 54,000 89,000 ] 75,000 $318,000 HV #7 v1.0 04/16//04 ]0 . I Halliburton BAROID . UNOCAL Mud Program Losses UNOCAL Lost Circulation Decision Tree fl Inhibited Mud Systems + . . · Seepage Partial Severe Total 15·60 bbl/hr 5·10 bbl/hr Static Static 60-200 bbl/hr Static > 200 bbl/hr Static . . , . ~ I Treat Active System I I Treat Active System I 160-150 bbl/hr Static I 1150-200 bbllhr Static I Drill Across Fault with 5 sx/hr Barofibre with 10 sx/hr Barofibre . . · I Drill Across Fault I I Drill Across Fault I Pump Gunk Squeeze . pill to allow POH 100 ppb LCM/Mud Pill: (Volume to be Yes Yes 20 ppb Baroseal F t determined based ~ + 20 ppb Baroseal M upon losses 30 ppb Barofibre I Contact Drilling Engineer I · I Drill Ahead I I Drill Ahead I 20 ppb Wallnut M or Engineer on call No 10 ppb Wallnul F Contact Drilling Ilo"""lt..h''''rt" I No + Engineer or Engineer t on call 5 sx/hr Barofibre 70 ppb LCMlMud Pill: I Contact Drilling Engineer or I " · . 5 $,,(/hr SVacaro 50 Engineer "On Call" 20 ppb Baroseal F Pump Gunk I POH, PU dumb iron I 20 ppb Baroseal M Squeeze pill BHA 20 ppb Barofibre (Volume to be ~ 10 ppb Wallnut M determined based Yes upon losses) + Consider cement I I Drill Ahead I No plug back contingency . 40 ppb LCMlMud Pill: Yes " 10 ppb Baroseal F . Pump Gunk 10 ppb Baroseal M IDrill Ahead I Squeeze pill 10 ppb Barofibre No 10 ppb Wallnut M , Contact Drilling ( '\ Engineer or Engineer Notes: on call to determine if 1) Drill across fautt or loss zone 1.5 - 2.0 times the length of the Yes additional LCM 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 pill 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. \. J HV#7 v1.0 04/16//04 ¡ 1 I Halliburton BAROID Losses ~ Seepage 5-20 bbllhr Static , Treat Active System with 5 sxlhr Baracarb 50/150 Yes ¡ I Drill Ahead No , Increase Treatment to 10 sxlhr Baracarb 501 150 , No , Yes + I Drill Ahead I 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 bbllhr Statíc , 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 bbllhr Static . I 60-150 bbl/hr Static I t 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 . /150-200 bbl/hr Static I t Drill Across Fault + Pump reverse gunk squeeze pill to allow POH (Volume to be determined based upon losses) ~ I Contact Drilling Engineer or I Engineer 'On Call' ¡ I Contact Drilling Engineer I or Engineer on call . Pump reverse gunk squeeze pill (Volume to be determined based upon losses ( + 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. l J 12 . . I Halliburton BAROID Gunks (WBM) UNOCAL Mud Program 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: · · · · · Limitations: · · · · · · · HV #7 v1.0 04/16//04 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 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) 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 driIJ 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 drill pipe 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 well bore 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//04 ]4 . . 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 J 5 04/161104 · . 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 "Unweighted Reverse" Gunk Pill Water 0.66 bbl Caustic Soda I.5Ib Dispersant (Desco CF) 3.5Ib Organophilic clay (GeItone) 250 Ib 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 04/16//04 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 ]3.0 ppg Reverse" Gunk Pill Water O.63bbl Caustic Soda l.5lb Dispersant (Desco CF) 4.OIb 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 J 7 . . 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 Q!f 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 '!4") hole and maintaining the drill solids I 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 APIFL N/C <8 Q!f 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: 10,000- TO Densitv Viscosity PV YP .ES 9.9-9.6* 45-60 18-2911-20 1000- ff¡ 1100 9.6 . 45 - 60 18 -29 11 - 20 1000- .0/ 1100 * - Additional mud weight may be required for effective coal or shale stabilization. HTHP FL <8 WPS 280 to 310K 80/20 o/W 4350 -10,000' <5 280 to 310K 90/10 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 - Surface HV#7 v1.0 04/16/104 ] 8 I Halliburton BAROJD , ~peratOl: UnocaI Rig: KW<.pik 5 : well: Happy Valley #7 Interval 16" Surface : T .ðnsport Ave.age En % V. ft/min ....-: . UNOCAL Mud Program Hole ECD Anwe ~/gæ 1w/o Cut I w/Cutl 6%KO Flow Rate = 590 gal/min Mud'WeìghI = B.91J/gaI R-1 S@120ft/hr-100¡pm/HC- 4.5 x 3.826 x 861.0ft . e; .... 5. x 3. x 910ftl " -I B. x 2.813 x 8l0ft 1(0)- Î \ I I-~ I 16in I I I r ¡, 092.0 1032.0 V 032.0) ft 38 75 30 60 90 8.90 9.40 9.90 9041/9.445 IJ/gaI The hole cleaning model indicates that 590 gpm and an ROP of no more than 120 ftlhr will be needed to achieve good hole cleaning in this large wellbore. If these flowrates cannot be maintained, remedial action such as high viscosity sweeps and circulating on connections may be required. HV #7 v1.0 04/16//04 19 . I Halliburton BAROID Intermediate hole modeling ¡Operator: UnocaI Rig Kuukpik 5 well: HappyValiey 117lnlerval: 12.25" Intermediate: Cuttings T ransporl Ave/age % En av % V./t/min . 1000 - 2000 3000 - J Jlfl 4000 - . IUIII ¡ , '-- 25 0 50 1000 68 135 30 1 1 hr flIT timP UNOCAL Hole Angle ECD Ib/gal 'jw/oCutl . w/Cut . Mud Program 6%KCI Flow Rate = 590 gaI/min Mud Weight = 9.11b/gal R·1 s@ 110 ~/hr·1oo rpm I HC- 112.415 in 1032.0 (1032 0) fl 9.203/9.330 Ib/gal /12.35 in 1500.0(15000)~ 9203/9.380 Ib/gal /12.35 in 2000.0 (19970) ~ 9.204/9.402 Ib/gal 112.35 in 2500.0 (24800) ~ 9.205 1 9,416 Ib/gal 12.35 in 33SO.0 (32480) ~ 9.208/9.511 Ib/gal 3300.0 (3184.0) ~ 9208/9,483 Ib/gal 112.35 in [1- 4350.0 (4034.0) ~ ; 9.214 19.553 Ib/gal 4.5 x 3.826 x 4032.0 ~I . i Ii . I' 'I ¡: \ - 5. x 3. x 150.0 ~I \ i 6.75 x 2.813 x 108.0 ~I Rotation must be optimized in this size hole and at this angle. Rotation less than 100 rpm's indicates that there will be cuttings accumulation. At flowrates of 590 gpm (a rate the Kuukpik #5 rig can achieve) an average Rap of 110 ft/hr can be achieved. For higher Raps, an increase in rotational speed from 100 rpm to 120 rpm is recommended - a gain of 30 ft/hr is had with a 590 gpm flow rate. A strict hole cleaning sweep strategy will be required for Raps above 125 ft/hr. HV #7 v1.0 04/16//04 I I 60 90 9.00 9.50 4478.3 10.00 20 I Halliburton BAROID Production hole modeling ¡Operator: UnocaI Rig Kuukpik 5 : Well: Happy Valley 117 : T ransporl EO ðV % 100J- - , 2000- 4000 - = 5000 - _ 6000 .r,- 700J- 8OCNJ- 90)) - - 1 (ffi)-. 1100J- . 12000 J'¡:VN<"."J,- rîÞ::¡:};,::],ii~, 25 0 50 1000 1 q hr rllT timP . AVeJage V./l/min III :I!~ ill~ iV:,»> ]k:"~'Af. ~iii UNOCAL I I I ' 30 60 90 9.30 9.BO . Mud Program I nvermul Flow Rate = 550 gal/min Mud Weight = 9.3lb1gal R-1 s@ 150 It/hr-BO rpm I HC- eo B. B35 in 1900.0(1888 0) It 9540/9.11'9 Ib/gal \ B.B35 in 'j7nn n ('""ICe': m ,. B.B35 in 3300.0 (31 B30) It ~ ~t49 19.729 Ib/oal B.B35 in 4350.0 (4034.0) It 9559/9.820 Ib/gal B.6in 6500.0 (5726 0) It 9.585/9.916 Ib/gal B.6 in 9900.0 (84300) It 9604/9_990 Iblgal B.6in 10500.0 (89180) It 9.606/9.990 Ib/gal B.6in 11500.0 (98030) It 9.607/9.994 Ib/gal 8.6 in 12000.0 (102730) It 9606/9.976 Ib/gal B.6in 12642.5 12330.0 (105900) It 10.30 %63./1O.022Ib/gal 4.5 ~ 3.826 ~ 12074.0 It I 5.0 ~ 3. x 149.0 nl-- 17.25 ~ 2.B13 x 107.onl The recommended flowrate is 500-550 gpm, although 450 gpm will give adequate hole cleaning at 120 ft/hr. With 4.5" dp, hole cleaning at 150 ft/hr, within the pump pressure limitation (3600 psi), should be more than adequate with 80 rpm and 550 gpm. HV #7 v1.0 04/16//04 Hole ECD Angle Ib/gal w/a Cut w/ Cut y\ I ( t\ ! \ I l 't ¡ \ ~ \ j \ II . 2 ] . . B.) 9.3 PPG OBM using 4.5" DP Discussion: Effective hole cleaning takes place ifbelow the solid red line. This line represents 3% cuttings loading in the annulus. The model indicates that with 500 gpm, the max ROP for effective hole cleaning would be 175 ft/hr. The corresponding pressure loss would be about 2500 psi. At 100 ft/hr ROP, good hole cleaning can be achieved with as low as 350 gaVmin, augmented with sweeps. ECD Annular Section 13 -10900.0 ff Total i)1gaI S1epping Rotary ROP -1s I Hole C1ean@100rpm-2miTlIComediontime - ~ psi ¡Ö~1112. 314"- 3OO1IJhr i/ 10.45 . Average CuIti1gs load% ~ - -.-. - --- - - - --- -- -- ---- - - - -- -t-.. _. _____ _ _ _ ___ _. __ ____. _.. _ - _ -.- _ _ -. -- - -- - --. - -. "7&5000 " I ( 10.35 10.40 - - - - -- - - -- - --- ,- .----- -.- - - - - - - - - - - ----- -.- ---- -- -, -- -- - ---, ... ,¡,-----...,....... --.... ...-.. ..'--,--'--..-.......: ...-- -................ ....~............_... 10.30 it ," 4500 __ ___ _ .__ _ ___ _ __ ______ _.______ ___ - _______ ___._.__ _____________ - _._ ________.__ - ___ - --_. _. - -___ ,d- ____ ----.. , '-- ./ _. _ m _ __. _ __ _ _ _ _ _. .c_ _ __ _ _. u. __..... ____ __cc. _._ _ _ ~_ _ ~ ~~~~~. _ __c. _c ___.. _, _. u _ _ __ _ _ _ _. __ _ ii., _ _ _. __.. _ __. t 4000 10.25 ECDMax1t2/b1gal ".' ..-..'/ 4:0 10.20 -r--- --... -----.- __n__ ------.-. -------- -- - -------.~--~ _.ow_ ----- - - - - ---- - - - ___U~ . ~! " ,_' ,1-' .,:J'~ ~,;." 10.15 10.10 ---- --.- .-.- _.___m m_m__ m__ ___m____..175 ----.X:--.......-:::::---'::~ ______________ __32. _Ow, 00____ __ _ 3000 lO.lI5 _..m..mm......_....m...m....m_..._._....~_::::;_~ i;~~······..······ 2fIM] 10.00 - -.. - - - - -. - - -. - - - - -- - - .---. - --- - -. -- 00- ~ - - - --- - -- ---- _Ow, -. - - - - - -1---- -, . --... ---- - - - - -- - - - - - - - - -- -- - -- - - --- -. / 9.9511 _m.. ............ ............................. .....~..;I............ ...._..::..::;;..,,~:;. ........ ..... 2I!XI 9.900 _________________mm____________..m_____.113 m).6 ~2.4 "-_00-;.'::-1.8 ~-:---.----------_. /' ,_., 1.9'/ 9850 - - -- -_00-- _00_ _ _ _ _ __ _ _ __ _. __ __ ____ ___u_____ u_ ~___ ___ _ ____ __......-.:-.:- U__ __ 00_ ..__._ __ __.. _. _ _ __ U __ ____ __ _ __ _ _. 1500 . ...// 2 .-,.-., ...--' 9 BOO ----.. -- -- ------ ------ ------ ----._--._-..¿-- _____________u___.____.____ .___________J:~~7. ---.- .--- ---.-. . ~/ ",...;-§~. 1000 9.750 - -- - - - - - -- --. - -- - - -. -- - U - - - - / - - --.-- - - - - -. -..---- - -- - 0 -. - - -. -- - .....:'Š;;;:: --. - - - -. - - - - - - -- 0_' -.' -- - 0 ..-. ./' 5O-12--1.1~. // 9.700 -- --- -----.. ---.;:.;..... -- ---- .---- ----.----------- ------ - ---.------..--------. --- -. ----- -- --00 --.-.. - --- --.- ---. 500 9.650 _............... "'.. "'........... -................ -..................................................-.. -.. ---- --....................... -................................. .'_." -....... - "'.. --...... -............................... ... 125 250 500 625 375 3500 ilT!!il~ìl)~PI¡[;.¡_ nverrnIJ Density = 9.31b1gal OM< = ASG = 2.9 ppm = 300000 600=59 100=14 300=34 6 =6 200=25 3 =5 n= .928 k :: .œ2561b11 Q01t2 SO T mil :: 4.88 tJtI Q01t2 - ~ gaLImm FOR INQU!nIES CONTACT LOCATION WHE!lE 1~II!OICES WERE SUBMITTED 06-09-04 DRILLPERMITHV7 10189964 FORM 4-28181 (REV. 11-9.5) PRINTED IN USA DETACH STUB BEFORE DEF'OSITING CHECK CITIBANK DELAWARE A Subsidiary of Citicorp ONE PENN'S WAY NEW CASTLE, DE 19720 62-20 3iT UNOCAL 1031548 06-10-04 2007795 _.~,-----,- 100.00 . 100.00 100.00 100.00 Union Oil Company of California Accounts Payable Field Disbursing 2007795 . Pay One Hundred Dollars And 00 Cénts************~************************************************* STATE OF ALASKA ALASKA OIL & GAS CONSERVATION COMMISSION 333 WEST 7TH AVENUE SUITE 100 ANCHORAGE, AK 99501 United States III 200 ? ? 11 Sill 1:0:ì ~ ~OO 20111: Date Check Amount 10-JUN'-'04 Void after six months from above date. *******100.00 -t'"' _ ~ D.Ä. PAGE JUN 1 0 2004 :ì 11 ~ ~8 ~ :ì ? III · " cmBANK DELAWARE A Subsidiary of CiUcorp ONE PENN'S WAY NEW CASTLE, DE 19720 62·20 31f Union Oil Company of California Accounts Payable Field Disbursing 2007778 UNOCALI16 Pay One Hundred Dollars And 00 Cents************************************************************~ To the order of 19-APR-04 Check Amount ********100.0( Date STATE OF ALASKA ALASKA OIL & GAS CONSERVATION COMMISSION 333 WEST 7TH AVENUE SUITE 100 ANCHORAGE, AK 99501 United States m.mm~f;;¡1L II' 200 ?? 7BIII 1:0 j ¡ .00 20 iii: j Ii ¡ . B Ii j ? "I RËCË/VED APR 1 9 2004 Alaska Oil &G as Cens C . AnChorage' 01'f1mlssion . . TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/P ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME~ï f{~ PTD# ,zo'i - {Òh X Development Service CHECK WßA T APPLIES ADD-ONS (OPTIONS) MULTI LATERAL (If API number last two (2) digits are between 60-69) PILOT (PH) #7 Exploration Stratigraphic "CLUE". Tbe permit is for a new weJJbore segment of existing weD Permit No, _ API No. Production. sbould continue to be reported as a function 'of tbe original API number stated above. HOLE In accordance witb 20 AAC 25.005(f), aJJ records, data and logs acquired for tbe pilot bole must be clearly differentiated In both name (name on permit plus PH) and API number (50 70/80) from records, data and logs acquired for wen (name on permit). SPACING ." EXCEPTION )( DRY DITCH SAMPLE The permit is approved subject ·to fun compliance with 20 AAC 25.0SS~ Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. {Comuany Name) assumes tbe liability of any protest to the spacing. exception tbat may occur. AU dry ditch sample sets submitted to tbe Commission must be in no greater ·tban 30' sample intervals from below tbe permafrost or from where samples are first caugbt and 10' sample intervals tbrough target zones. ~ -:(/5 ~ Al(/ ~ r'/ ¡{~e- -t. rÚ7 O~ c:.- ie, aÞr ~v'. h ¿ Field & Pool HAPPY VALLEY, UNDEFINED GAS - 290500 Well Name: HAPPY VALLEY 7 Program DEV Well bore seg 0 PTO#: 2041 060 Company UNION OIL CO OF CALIFORNIA Initial ClasslType --º.EV / 2-GAL GeoArea Unit On/Off Shore On ._ Annular Disposal 0 Administration I; Perm it fee attaçhe.d. · . . Yes leasen!Jmber .appropri<lte. . . Yes 3 .U.niq!Je well. n.ame .and oumb.er . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .. . . Yes - - - - - - - - - - - - - - - - - - - - - . . . - - - - - - - - - - - - - - - 4 Well JQc¡:¡ted in.a d.efjlJe.dpool. . No. 5 Well JQc¡:¡ted proper .distance. from driJling !JlJitb.o!JlJdal)' . . No. THIS APPLlCATIONJS A RUSH A.SPACING ORDER FOR. . - - - - - 6 WellJQc¡:¡ted pr.operdistance from otlJer welJs. - - - - . No. 25.055 (a)(2) atld(4)WILL BE REQUIR~Q. Ttil; HE:ARIN<3. NQTICE 1& BEING PROCE:SSED . 7 .S.uffiçielJt .açreage.ayail<lble in driUiog unjt. No CONCURRENTLY WITt! JHISAF'P.LIGATIQN TO DRILL.. 8 Rdeviated, js. weJlbQre plaUlJcJu.ded . Yes 9 .Qperator olJly affeçted party. . - - - - - .Yes 10 .Operator bas.apprppriate. bond inJorce . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes - - - - - - - - - -- - - - -- 11 Permit c.an be issued withQut conservaJiOIJ order. . · . . No. Appr Date 112 Permit can be issued witlJQut admilJistratÎl.'e.apprpvaJ . . . . . ... Yes . RPC 6/14/2004 13 Can permit be approved before 15-day wait Yes 14 Well JQc¡;¡ted withilJ area atld.strat¡:¡ .authorized by.lnjectioo Order # (p!Jt 10# in. comments). (For. NA 15 AJI welJs.WithtnJl4.mile.area.of review id.eot!fied (Fpr seNjc.eweU Ol1ly). . ............ .NA. - - - - - - - - - -- - - - - - 16 Pre-producect injector; .dur<ltiQn.of pre-productiolJ less them:3 mOl1tlJs (For.ser:vice well QnJy) . . NA 17 ACMP.F:itldingof CQn.sistencyh.as been.iss!Jed. forJbis project NA - - - - ~ - - - - Engineering 18 .Condu.ctor stritlgprQvided . - - - - - - - Yes 130' TVD. 19 .SudacecasilJg_prQtec.ts allknown. USDWs . _ Yes 20 _CMT vol adeQuate_ to çirculate o.ncOl1d_uçtor & surf. csg _ Yes Ade~l"Iate excess. 21 .CMT v.ol adequate. to tie-in IQng .string to.surf ~g Yes 22 _CMTwilJ coyer.aJl kl1ownprod!Jctiye IJQri;wn_s. .Yes 23 C.asing designs acteQua.te fpr Ç,T4 B_&permafrost Yes 24 Adequ<lte.tan.kage.or re.serye pit _ _ Yes Kuukpik Rig .5. . _ 25 Jta_ re-drilt bas. a 10-403 fQr <lbandotlment been ¡:¡pprQved . · _ . NA New well, _ 26 .Adequ<lte.we!lbore separ<ltion.proposed. . . . . . . . . . . . . . . . . . . . . . . ....... Yes - - - - - - - - - -- 27 Rdivel"ter required, dQes it meet reguJatiOlJs_ NA W<liyer .requested.. Appr Date 28 _Drilling fluid. prQgram schematic & eq.uip listadequ<lte_ Yes Max MW9Ji ppg . WGA 6/14/2004 29 .B_OPEs,dpthey meet reg uJatio IJ _ . _ Yes 30 .B.OPE:_press ra.ting appropriate; test to (pu_t psig in_commel1ts). _ Yes Test tp 4500 pst. 31 .C_hoke.manjfold cQmpJies w/API Rf'-5:3 (May 84) . Yes 32 WQrk will occur withOl"ltoper¡:¡tjonsbutdown. Yes 33 .Is presence Qf H2S gas_ probable _ _ No 34 Meçhanic¡:¡LC9odition Pf wells withilJ AOR verifiect (fors.ervjce welJ Otlly). · . . NA - Geology 35 Permit can be iSSl!ed wlQ hydrogen. s.ulfide measures. _ . . No 36 .D_atapreseoted Qn_ pote_ntial pve.rpres_sure .ZOlJes_ NA Appr Date 37 _Seismic_analysis Qf slJaJlow gas.zpnes . . NA RPC 6/14/2004 138 Seabed .colJdjtipo survey (if off-sh.ore) . NA 39 . CQnta.ct l1amelp.hotleJorweekly progress. reports [expIQratol)'_onIYl . NA. Geologic Engineering Date Public Date Commissioner: Date: Commissioner Commissioner D'P ~JlSf't e e Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding infomlation, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · C:<Oc/-(()b Unocal Alaska Final Report Happy Valley #7 Happy Valley Field Kenai Borough, Alaska - - - HCR~zcN WELL LOGGING,. INC. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCR~Z-cN WELL LOGGING,. INC. Unocal Happy Valley #7 Operational Summary 06/21/04: Test BOP, work on pitcher nipple, M-U BHA, RIH, drill cement 06/22/04: Drilled from 1074 to 2608'. 06/23/04: Drilled ahead rotating and sliding from 2608 to 3495'. 06/24/04: Drilled ahead to casing point at 4341'. 06/25/04: Ran 9 5/8" Casing. 06/26/04: Cemented 9 5/8" casing. WOC. Nipple up. 06/28/04: Tested BOP; Picked up drill pipe; drilled cement; drilled ahead with 8.5" bit from 4340- 4699' 06/29/04: Drilled ahead 4699-5895' with 8.5 hole. 06/30/04: Drilled 5895-6089'. Hole started taking fluid at 5891'. Circulated and reduced MW to 8.9. Drilled ahead. 07/01/04: Drilled ahead from 6089' to 6453'. Hole began taking fluid. POOH 7 stands. Monitor well. 07/02/04: Drilled ahead from 6462-6526'. Lost retums at 6526'. 07/03/04: POOH. Change BHA. RIH. Drill ahead 6526-6739'. 07/04104: Drilled ahead to 6772'. Encountered losses. Shut down to build volume. 07/05/04: Stage into hole with partial returns. Build Volume. Squeeze gunk plug. Stage into hole losing 20-30 bph 6400-6600' and 50 bph below 6600'. 07/06104: Drilled 6772-6915' with 20-100 bph mud losses. Preparing to run 7" casing liner. 07/07/04: Test BOPE. Run 7" Casing Liner. 07/08/04: Run and cement 7" liner. WOC. Pressure test BOPE and liner. 07/09/04: RIH 61/8" tools and MWD. Drill 6915-6927'. 60bph losses began at 6922'. POH. 07/10/04: Squeeze two 30bbl cement plugs at 6796'. POH. RIH to tag/drill cement & drill ahead. · · · · · · · · · · · · · · · · · · · · · · · HCR~zcN WELL LOGGING.. INC. 07/11/04: Tag & Drill Cement Retainer @ 6794. RIH and drill to 6945'. Change over to water based mud. 07/12/04: Pick up MWD & Mudmotor. Drill ahead 6945-7480'. 07/13/04: Drill ahead 7490-8596' with 40-75 bph mud losses. 07/14/04: Drill and SUlvey 8583-9421'. 07/15/04: Drill and Survey 9421 to 10274'. 07/16/04: Circulate after Wiper Trip. Circulate and Monitor Gases at the 7" Liner Shoe. 07/17/04: Run Schlumberger Electrical Logs to +/- 8400'. Running 31/2" Liner. 07/18/04: Running 3 1/2" liner. 07/19/04: Land 3 112" Casing at 10272'. Nipple Down BOPE. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCRÅzcN WELL LOGGING.. INC_ Unocal Happy Valley #7 LitholoQical Summary 1015': SILTSTONE: It-med bmsh gry, speckled w/omg & blk; sft-firm, com friable; massive; locally sandy; mica; com carbonaceous material; non calc. 1055': CLAYSTONE: pi to med grysh bm, oce v pi omg; v sft & tuffaceous to com firm; blky to oce platy ctgs; no evid struc; loc silty; com marbled w/blk carbonaceous mat. 1090': CLAY: minor amounts washing out of hydrated siltst & clayst; thin consistency xpt tr pasty wht bentonitic clumps; incr loose sand in washed spls. 1120': SAND: med gry overall, grains are clr-transl-oce wht, gry, blk, dk bm, It omg, tr pi gm; fn to med, oce vfn; pred sbang to sbmd; fair spher; unconsol; qtz, fspr, mafics, com volc lithics; rare epidote. 1180': SAND: increase reworked fn to crs coal frags, oce w/clay coatings, varying lign & sub- bitum; entirely unconsol; predom sbmd; tr pass amber. 1230': SAND: increased angularity from above, to predom sbang, oce ang, low sphericity; also signif incr chlor & muscovite; med bmsh gry overall; unconsol; mostly qtz & fspr, plutonic IX, com volc IX, tr coal frags. 1295': SAND: incr clayey, clay adhering to grains but still unconsolidated, no ant; oce pi omg to It brn tuff frags. 1320': COAL: blk, glossy to sbvit; hd; brittle; tab to platy,com flaggy to splintery ctgs; mod fiss; clean; abund vfn & fn frags w/ang edges. 1375': SAND: clr to frstd, incr wht grains, also abd pi to med omg, blk, gry, bm, occ pi gm; fn to med,incr crs; pred sbang, w/sbmd, decr to oce ang; unconsol; qtz & fspr, ign lithics, tr mica. 1415': CLAYSTONE: well hydrated, mushy It bmsh gry clumps; v sft and plastic; It grysh bm to mod bm; massive; locally tuffaceous, bentonitic. 1460': CLAYSTONE: It to med grysh bm; sft & pasty/plastic where wi hydrated to firm & blocky; dull to waxy Istr; massive; com carb specks; grades to mudst & sltst; mica; noncalc. 1505': SILTSTONE: It to med bmsh gry, speckled w/blk, omg; sft to firm; mass; pred qtzIfsprllith silt-size grs, oce clayey; mica; abd carbonaceous material; com omg inclusions. 1540': COAL: v dk bm to blk; hd; sli blttl to tough; flaggy to tab; dull to sbvit Istr; mod fiss; clean. 1585': CLAY: It-med bmsh gry; v soft; well hydrated, mostly soluble but oce pasty whitish nodules; silty & sandy; abd nut hulls in samples. 1640': COAL: abd large frags appear to be slough, few smaller frags pass cut; v dk bm to sbvit black, Jign to sbbit; flaggy to blocky; oce whtsh clay coatings. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCR~zcN WELL LD6(:¡¡ING" IN£:_ 1690': SAND: med to It gry overall, grs clr-transl-wht, com amber, blk, pi gm, pink; predom fn to med, com fn, oce crs; sbang to sbmd; unconsol; qtz w/mostly alt fsprs, oce mafics; com lithics; rare epidote; noncalc; no spl fluor. 1755': SAND: as above, com clumped with mod to poorly soluble It grysh bm sticky clay; vfn to med, oce crs; com lithics with qtz & altered fsprs; tr musc. 1810': CLAYSTONE: predom mod hydrated, plastic to gummy clumps and tab pieces, many> 10mm; It to mod bm; sft, tr finn; massive; com mica; oce organic material. 1860': SILTSTONE: It to med brnsh gry; sft to finn; earthy; massive; multicol vfn grains; locally abd carbonaceous material. 1905': SAND: med to It gry. clr-wht-transl grs, com multicol grs, soong to sbmd, unconsol, qtz, w/alt fsprs,com lithics, noncalc 1975': CLAYSTONE: It-med gry to gryish bm, finn, sli plastic and pliable, pasty clay in places, dulllstr, com mica, slty, carbo 2035': SAND: vf-f, sbang to sbrnd, clr-mlky-wht qtz, alt fsps, very unconsol, vf to f multicol grs, calc, w/sft stky clay, ptly sol, tr carbo 2065': CLAYSTONE: It-med gryish brn,finn to sli sft' pasty clay in places, sli tuffaceous, sli carbonaceous, noncalc, slty. 2130': SAND: vf-f, ctt-wht-mlky, unconsol, tr crse qtz, alt fsps, lithics, sbang-sbrnd, tr carb material. 2155': SILTSTONE: It to med gryish brn, sft to fnn, earthy, massive, loc abt carbonaceous material, mnr vf-f varicol grs. 2195': SILTSTONE: It to med gry, mnr gryish brn, sft to fnn, It to med gry is stky, ptly sol, gryish bm is fnn, massive, loc carbonaceous. 2225': CLAYSTONE: It to med gryish bm; finn, sli plastic and pliable; pasty clay in part, dull Istr,loc silty; sli to mod calcareous. 2270': SAND: It gy to gy, vf-f gr, pred clr-mlky grs, soong to sbmd, mnr ang, mod srtd, unconsol, qtz. mnr carb and lithics, oce mafics, non to sli calc. 2325': SAND: It gy to gy, vf-f gr, oce med, mnr cse,pred clr-mlky gl'S, sbang to sbmd, mnr ang, mod to prly srtd, unconsol, qtz, mnr carb and lithics, oce mafics, sli calc. 2375': SAND: It gy, vf-f gr, mnr cse wht to mlky grs, pred sbang to sbmd, prly srtd. 2400': CLAYSTONE: It to med gry, gryish bm; finn, sli plastic and pliable; stky clay in part, dull Istr,loc silty to sdy; sli to mod calcareous; sli carbo I I · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCR.zcN WELL LOGGING" INt:_ 2455': SAND: It to med gry overall, grs are clr-transl-oce wht, varying amts vf-f varicol grs,pred sbang to sbmd, fspr, fair srtd, unconsol. 2485': COAL: blk, oce bm;glossy to subvit; hd; brittle; tab to platy; mod fiss; sme frags with ang edges. 2530': SAND: It gy to gy, vf-f gr, pred clr-mlky grs; mnrtransl;pred sbang to sbrnd, mnr ang, mod srtd, unconsol, qtz. 2580': SAND: It gy to gy; vf to f gr; pred clr, mnr wht to transl; pred sbang to sbmd; poor to mod srtd; unconsol; mnr carb; non to sli calc; with mnr sandstone; med to dk gy; finn - friable; calcareous. 2640': SAND: It gy to gy; vf to f gr; scat med gr; pred clr, sme wht to transl;sbang tosbmd; mod srtd; unconsol; mnr carb and varicol grs; non to sli calc. 2690': SILTSTONE: It to med gry, mnr gryish bm, fnn to brittle, massive;carbonaceous; gryish bm is ptly sft and stky, sll to mod solu & more argil than It gry portion. 2725': SAND: may be derived from sandy siltst & clay; loose grains only, vfn to med; qtz with lithics. 2775': CLAYSTONE: mixed population, some It to med gry, pasty & hydrated, grades to clay, appears tuffaceous; other portion is med to dsky brnsh gry, finn, com silty & mica, incipient fissility. 2835': CLAY: It to med gry, sli bmsh in part; grades wlclayst, easily washes out of wet samples, some less solu pasty nodules; persistent adhering sand & small coal frags. 2915': CLAYSTONE: some tuffaceous, some grades to mudstone; It to mad gry & bmsh gry; sft to finn; com waxy luster; structureless; mica; locally carbonaceous; silty in places; noncalc; Ise snd in each spl. 2975': CLAYSTONElMUDSTONE: It to mad gry, com grysh bm; gry pieces are often partially hydrated to clay and tuffaceous; finner frags are silty & micaceous grdng to mudst, oce silty lams but no fiss; noncalc. 3035': SAND: elr to transl wht, dk gry, dk bm, It omg, blk, tr gm; vfn to med, pred up fn; unconsol, com adher to elay/elayst; sbang; qtz & lithics, alt fsprs; IT epid. 3070': CLAY: It bmsh gry; v soft; well hydrated; good solubility; oce sli plastic nodules & tuffaceous clumps; mod sticky. 3125': SAND: It gry overall, grains clr to transl wht, incr qtz compared to above, with It omg, med & dk gry to blk, pi gm; vfn to med, pred low med; sbang to sbmd; unconsol; meta lithics. 3186': CLAYSTONE: It to mad gry, tuffaceous, grdg to com gryish bm, finn, brittle in part, carb; oce silty lams; non calc. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCR~zcN WELL L06ì6ìII'\lG"INI:_ 3250': SAND: It gry overall, grains clr to transl wht, incr qtz, with It omg, med & dk gry to blk, pi gm; vfn to mad, prad low med; sbang to sbmd; unconsol. 3285': CLAY: It bmsh gry; v soft; well hydrated; good solubility; oce sli plastic nodules & tuffaceous clumps; mod sticky. 3320': SAND: It gry overall, grains clr to wht, qtz, with It omg, med & dk gry to blk, pI gm; vfn to med, prad low med; sbang to sbmd; unconsol. 3375': SAND: It gry overall, grains clr to transl wht, incr qtz , with oce It omg, dk gry to blk; vfn to mad, pred low med; sbang to sbmd, mnr ang; unconsol; meta lithics. 3450': SAND: It gry to mad gry, grains clr to transl wht, qtz , with oce It omg, gry to blk; vfn to mad, prad vfto fn; sbang to sbmd, mnr ang; unconsol;very calcareous. 3620': CLAYSTONE: very It gry to gry, very sft to sft, oce brittle, mushy to pasty in part,mod hydrated, sme It to mod bm, com mica, oce carb specks. 3650': SAND: v It gry to gry, grains clr to transl wht. oce milky qtz , with abt It to med omg, gry to blk; vfn to fn, oce milky cse; pred sbang to sbmd, mnr ang; unconsol;non to 51 calcareous. 3640': CLAYSTONE: very It gry to med gry, oce dk gry, very sft to sft, Oce brittle, sticky to pasty in part, mod hydrated, non calcareous; sme It to med bm, com mica, oce carb specks; scat varicol fn to mad sand grs. 3695': SAND: abund meta lithics with qtz; It-med gry overall, grains clr to transl & dk gry, oce med gry, blk; fn to med, tr vfn; sbang to md, pred sbmd; mod to high sphericity; tr biot flakes; oce small reworked coal. 3755': CLAYSTONE: predom tuffaceous, easily hydrates to mod solu clay; It to med gry, oce mod bmsh gry; v sft to sli firm; mdd sli blocky ctgs; earthy; structureless; non calc; locally silty. 3815': COAL: v dk bm to black; lignite to subbit; frm to hd; blocky to tab ctgs; sbvit to vit luster; crude planar partings; locally visible contact w/silt-size sand; no apparent outgassing. 3880': CLAY: apparently derived from disintegrated tuffaceous clayst. grades w/well hydrated Clumps of pliable soft gray dayst; It gry; thin éOnsistency; mod solubility; silty & sandy. 3920': SAND: as above, notably abundant lithics mostly meta IX, md to sbmd, dk gry. no identifiable structure or grains; also w/clr to transl qtz, sbang to sbmd; fn to upper med; no cmt or Cly mtx. 3980': CLAYSTONE: incr indurated compared to above but still mostly hydrated & mushy grading to mod soluble clay; It to med gry, tr med-dsky grysh bm; sft to oce firm; earthy; massive; locally abund organic remnants. dk orange to dk bm; occ silty. 4055': SILTSTONE: trace amounts, grades w/clayst; uniform It gry; 8ft; massive; argil; tr mica; similar components as loose sd: dr-transl qtz & abund dk gry meta lithics. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCR~zcN WEI_L LOGGING.. INI:_ 4115': CLAYSTONE: tuffaceous; It to oce med gry; v soft & hydrated; no structure; becoming incr calc in part; rarely silty; mushy to pasty. 4170': CLAYSTONE: tuffaceous; It to oce med gry; v soft & hydrated; no structure; becoming less calc than above; incr1y silty. 4210': COAL: v dk bm to blk; lign to sbblt; fm1 to hd; blocky to tab ctgs; sbvit to vit luster, mnr dull Istr; crude planar part; loc vis contact w/silt-size sand; minor outgassing. 4270': SAND: abund meta lithics with qtz; It-med gry overall, grains clr to transl & dk gry, oce med gry, blk; fn to med, tr vfn; sbang to md, pred sbmd; mod to high sphericity; tr biot flakes; oce small reworked coal. 4400': CLAYSTONE: med to dusky bm; sft to finn; platy cuttings, com curled shavings; oce sli fissility grdng to shale; locally tuffaceous, silty. 4430': SILTSTONE: more cohesive in Oil Base Mud; It gry; sft, sli friable in places; structureless; patchy clay; accompanied by silt-size to vfn sand & sandst; qtz wlcom lithics grains. 4490': SAND: med gry to med dk gry, vfto fn, sbang-sbrnd, oce md, mod sphericity, poorly srtd, sli silic cement, com lithic grains. 4570': SILTSTONE: It to med gry; sft, sli to mod friable in places; sli subblocky fracture; structureless; somewhat clayey in part; accompanied by silt-size to vfn sand; qtz wlcom lithic grains. 4640': SILTSTONE: tuffaceous, It-med gry, oce dk gry, 51-mod friable, mnr amts splintery, sme subblocky fracture; clayey to silty texture; with vf-f interbedded sands and silts. 4730': SAND: It gry to med gry, vfto tn, sbang-sbmd, oce md, sl to mod sphericity, mod to poorly srtd, silic cement, pred qtz, mnr com lithic grains; silty It gry clay matrix. 4855': SAND: It gry to It med gry, vf to f, pred sbang to sbmd, inc ang, moderate sphericity, very poor sorting, non calcareous; mnr amts med gry sandstone, fn to med grs, wlscat carbonaceous pieces In sandstone, non calc. 4920': SHALE: grades w/clayst; dk bm to bmsh black; finn, sli blttl; tab to platy ctgs; oce waxy Istr; weak fissillty; mod to very carbonaceous; minor coal fragments poss sloughing. 4975': SHALE: increasing induration, oce hard, blttl, platy to tab ctgs; com v carbonaceous. 4995': SILTSTONE: It to med gry (with dk bm coating from Oil Base Mud); sft; oce friable & sandy; mdd blocky ctgs; no evid struc; app tuffaceous. 5040': COAL: low-grade, generally lignite, grades wlshale In part; finn to sli hd; crumbly blocky ctgs; com planar part. 5065': CLAYSTONE: med to dk gry, com sll brown tint; pred finn, oce sft; blocky to Irreg ctgs; dull to waxy Istr; Incip fiss In places; noncalc; tr silty. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCR~zcN WELL LOGGING. II'\I£:. 5115': SAND: loose in samples adher to hydrtd elayst; elr to com med & dk gry; vfn to tn; sbmd; qtz & lithics. 5140': COAL: cont'd relatively low grade lignite, grdng to shale; platy to blky; flaggy planar breaks; sbvit to earthy Istr. 5185': CLAYSTONE: shaly to massive; med to dk sli bmsh gry; sft to v firm; sbmd blky ctgs; dull to waxy Istr; noncalc; locally more punky, tuffaceous. 5240': SANDSTONE: It gry, near white; sft to waekly friable; vfn to fn; pr sorted; sbmd; mod to low spher; abund clay matrix, locally clean, com appears tuffaceous; poor apparent porosity; pred qtz wlcom gry sbmd to md lithics. 5310': COAL: small frags lignite; bmsh blk; crumbly; blocky; finely laminated, shaly; oce visible outgassing. 5360': COAL: lignite, shaly grdng to shale; bmsh blk to blk; firm to hd; blocky; oce visible interlams of shale, rare mudst; local silty veneer. 5450': CLAYSTONE: It to dk gry, coated w/dk bm OBM; sft to firm; blocky generally ang ctgs; waxy when scored; massive; tr organic remnants; noncalc. 5500': SILTSTONE: grades w/sandst, same component grains, sbang-sbmd qtz wloce lithics; It gry to wht; structureless; argil; rare mica. 5550': SAND: clr to transl wht, oce It to dk gry; vfn to upper fn; sbmd to md; oce weakly consol in clay mtx; poor app porosity. 5580': CLAYSTONE: smaller crumbly particles & blocky frags; med to dk bmsh gry; sft to firm; com incip fiss, planar partings; oce carbonaceous inclusions; noncalc. 5635': SAND: clr to wht, gry, tr It gm; vfn to fn; pred sbmd; unconsol xpt few pasty clay mtx silty pieces; tr biotite. 5690': SAND: clr to wht, gry; vfn to fn; pred sbmd;mnr sbmd to subang; unconsol xpt few pasty clay mtx silty pieces; tr biotite. 5810': SAND: clrto transl wht, oce milky, oce It to dk gry; vfn to upperfn; sbmd to md; sme minor ang; oce weakly consol in clay mtx; poor app porosity. 5935': SAND: clrto transl wht, ace milky, oce It to dk gry; vfn to upperfn; sbmd to md; sme minor ang; oce weakly consol in clay mtx; poor app porosity. 5975': CLAYSTONE: smaller crumbly particles & blocky frags; med to dk bmsh gry; sft to firm; com incip fiss, planar partings; oce carbonaceous inclusions; noncale. 6070': SAND: elr to transl wht, oce milky, sme It to dk gry; vfn to upper fn; pred sbang to sbmd; sme minor ang; mostly unconsol in clay mtx; mod to very calcareous;poorly srtd; very silty; med to dk gry sft clay matrix; med carb grs; intrbd coal; bm to It blk, crumbly to partly firm.. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HeRA\ZeN W"ELL LD6i6iIN6.. IN£:_ 6195': CLAYSTONE: It to dk gry; sft to slightly finn; blocky generally ang dgs; partially sol; massive; tr organic remnants; noncalc. 6235': SAND: clrto transl wht, OCC milky, occ It to dk gry; vfn to upperfn; sbmd to md; sme minor ang; occ weakly consol in clay mtx; poorly srtd; mod calcareous. 6335': SAND: clr to transl wht, occ milky, occ It to dk gry; vfn to upper fn; sbmd to md; scat minor ang; poorly to mod sorted; grdg to med to cse clr to milky qtz; mod calcareous. 6400': SAND: clr to transl wht, occ milky; vfn to upper fn; pred sbmd to md; scat minor ang; grdg to med to cse clr to milky qtz; moderate sorting; mostly mod calcareous; med to dk gry soft partly sol clay matñx, locally sticky to pasty. 6525': CLAYSTONE: dom m-dk gry loc gry-bm; blky-mdd dgs; fria to finn; mixed mott vit & dull Istr; gen mass, loc subfis & pity; vf-f gr sbang SAND intbds; loc blk coal seams. 6565': SHALE: dk gry-bmgry-bronze; incr vit Istr; incr sub pity; fri ctgs; assoc tr dk bm-blk blky dull-vit COAL intbds 6615': SAND: clr to transl wht, occ milky, occ It to dk gry; vfn to upper fn; sbmd to md; sme minor ang; OCC weakly consol in clay mtx; poorly srtd; mod to very calcareous. 6780': SAND: speckld omg It gry & blk-gry; f-m gr,loc crs strgrs; unconsol; ang-sbrd; mod calc in part; 50% omg clas 35% It gry -clr & 15% dk lith clas; abund mica gr; tr blk vit coal clas. 6835': COAL: blk-bmish; brttl; mixed dull & v vit Istr; blky-subplty ctgs; loc sli calc; intbd wI gry mas fri CLAYSTONE. 6860': CLAYSTONE: m-Ioc dk gry; fri; v calc in pt; mas rdd ctgs; com silty gradations; assoc f-m gr SAND wI incr clr-gry clas 6885': SAND: m gry spkld blk & loc omg; vf-m gr; mod w srtd; mod calc; gen unconsol but loc intact gry cly mtrx; some hd calc cmtd SANDSTONE zones; grads to c1yey SILTSTONE and CLAYSTONE 6965': SAND: transluc, dr, pale org, opaque; lower fine to med grain; submd to dom subang to ang; poor sphere; fair to mod good sorting; composed of qtz, meta seds, lithics, tr chert; wkly calc; gen unconsolidated, poss in clay to tuffaceous clay matrix. 7035': CLAYSTONE: med to dk gry, bmish gry, OCC gmish hues; gen v soft to soft, mnr sli finn to finn; dom mded ctgs, mnr subblocky; mod to well hydrated; wk to dom mod calc; may be in part tuffaceous; massive, without structure or laminations; com gritty to silty tex; in part grading to argillaceous siltstone. 7125': COAL: blk to v dk bmish blk, finn to v finn, crumbles easily; blocky, subblocky, platy; subvitreous to vitreous Istr; matte tex; lignitic. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCR~zcN WEL.L LOGGING., IN£:_ 7160': CLAYSTONE: buff-wh-It gry; soft fri ctgs; v calc in part; mod sol; grads to dull bm firm mas earb SHALE & com blk carb intlams; intbd wI vf-f gr dom qtz SAND/SIL T; loc hard f-c gr calc cmtd SANDSTONE 7205': SHALE: dull bm; massive to subplty; crude fis; low grade carb mtrl; loc blk vit fossil stem flora fltg in lignite 7265': SAND: clr-It gr sl spkld omg blk & gm; f-m gr; gen ang-subang; mod w srtd; pred qtz & feld clas; 5% blk coal clas; 2% omg cht & gm maf clas; com tr clr mica clas; loc vis tan-gry sol cly mtrx; grads to SILT 7320': COAL: mixed blk & bm; dull & vit Istr; blky ang mas to sub pity fis ctgs; assoc incr It-dk gry to buff oce wh CLAYSTONE & SILTSTONE wI com blk carb intlams; v calc in part 7380': CLAYSTONE: dom It gry com wh & buff; v calc; fr rdd ctgs; com grads to fri-firm gry SILTSTONE; intbd wI blk dull to sl vit COAL & bm dull sub pity lignitic SHALE 7415': COAL: blk & bm; dull bm lignite to vit blk mature carb; blky and sub plty/sub fis ctgs; tr gas pops in lignitic SHALE; grads to It-m gry fri calc CLAYSTONE; intbd w SAND: elr-It gry spkld blk; pred qtz+feld elas w/1 0-20% blk-varcollith clas; unconsol but loc visible cly mtrx and tr calc cmt 7490': SAND: It gry spkld blk tr varcol; vf-m gr; mod w srtd; pred ang to subang; dom qtz+feld 10% carb rip up clas; calc in part; tr calc cmtd zones; grads to gry SILTSTONE & intbd wI gry fri sol CLAYSTONE 7560': COAL: blk; blky ang ctgs; highly vit Istr; com as intlams in SHALE: dk bm; dull apr; sub fis; firm; grads to buff-It gry CLAYSTONE & SILTSTONE; intbds of vf-m gr SAND w/loc hd calc cmtd areas 7605': SAND: clr-It gry; unconsol; f-m gr; mod w srtd; 10% vit coal clas or slough?; 5% varcollith clas; tr fri buff cly mtrx or calc cmt; v calc in part 7700': SAND: clr, transluc, It gry, opaque; lower fine to upper med grain; submd to dom subang to ang; poor sphere; poor to sli fair sorting; composed of dom qtz, mnr to sli com feld, mnr lithics and meta seds; dom unconsolidated, oce mnr ss ctgs; wk to sli calc in part; clayey matrix in part. 7785': COAL: blk to v dk bmish blk; firm to v firm; brittle, quick snap when broken; blocky to subplaty ctgs; subvitreous to vitreous Istr; lignitic. 7825': CLAYSTONE: It to med gry, oce dk gry; soft to firm; mded to subplaty ctgs, occ subblocky with com mded edges; wk to sli mod hydrated; mod to oce strgly calc; grades to argillaceous siltstone. 7900': SAND: It gry overall; indiv grains transluc, clr, opaque; fine to upper med grain; submd to dom subang to ang; poor sphere; poor to fair sorting; occ ss ctgs with clayey matrix; in part wk to sli mod calc; dom qtz and feld, mnr lithics and meta seds. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCR~zcN WELL LDEiiEiiINEii.. IN£:. 7960': COAL: blk to v dk bmish blk; firm to v firm; blocky to subplaty ctgs; brittle, quick snap when broken; subvitreous to dom vitreous Istr; lignitic. 8030': SILTSTONE: It to mod dk gry; firm to v firm; subplaty ctgs, commonly with mded edges; wk to mod calc; wk to mod argillaceous; grades to elaystone with gntty texture. 8105': SAND: It gry overall; elr to opaque grains, blk, bm, gm, and gry; fine to upper med, tr to v mnr lower crse; submd to dom subang to ang; poor sphere; poor to fair sorting; IT to v mnr ss ctgs, gen have clayey matrix; wk to oce sli mod calc; dom qtz and feld, mnr lithics and meta seds. 8160': CLAYSTONE: It to med gry; soft to firm; mded subblocky to subplaty ctgs; wk to sli mod hydrated; mod to oce stgly calc; grades to siltstone, in part wk to mod argillaceous. 8235': SAND: It gry overall; indiv grains elr to opaque, mnr bm, gm, blk, and gry; lower fine to upper med, ooc tr lower crse; submd to ang, dom submd to subang; unconsolidated; poor to sli fair sphere; fair sorting; v mnr ss ctgs, gen have clay matrix; wk to sli mod calc; dom qtz, com feld, mnr lithics and meta seds. 8365': COAL: dom blk; h vit Istr; blky ang ctgs; conchoid frac; mas or v f fol; sme ctgs fizz gas; inbel wI SAND: It gry; vf-m gr; ang-subrd; mod srtd; pred qtzIfeld 10-20% bm-omg tr gm lith; sme intact bm-buff sol v calc ely mtrx; tr firm calc cmtd zns; grads to bm tn-firm SILTSTONE & fn CLAYSTONE; abnt LCM In samples 8460': COAULIGNITE: pred dk bm; hd brit; dull wI com blk vit intercal; ranges from mas-f fol; Incr SANDSTONE: buff-gry; tn-Ioc firm; vf-m gr; dom ely mtrx & loc calc cmtd 8535': COAL: blk-dk bm; grads to bm sub pity carb SHALE; intbel wI bm-gry v calc CLAYSTONE & SILTSTONE wI com blk carb lams 8585': SAND: elr-It gry; pred unconsol;vf-m gr; mod w srtd; ang-subrd elas; dom qtz+feld 5-10% carb cht & mat lith elas; loc bm-gry sol calc ely mtrx wI mas tex or blk carb intlams; loc firm calc cmtd lens; grads to SILTSTONE; some assoc vit blk COAL ctgs in large sizes are pos slough 8680': COAL: dom bm loc blk; pred dull oce vit Istr; v t fol tex; gen blky ctgs; grads to carb SHALE & bm CLAYSTONE; incr abnt fn-firm calc cmtd SANDSTONE or wI calc ely mtrx 8755': SILTSTONE: bm-buff loc gry; fn rdd ctgs; v calc in pt sol cly mtrx; com carb lams; grads to CLAYSTONE & vf-f gr SAND; intbel wI dull bm sub pity-mas firm brit carb SHALE 8800': SAND: It gry overall; indiv grains clr, transluc, opaque; lower fine to upper med, dom fine to upper fine; submd to ang, dom subang; poor to sli fair sphere; mod sorting; mnr ss ctgs have clay matrix; in part mod to loc strgly calc; dom qtz, com feld, mnr lithics. 8890': COAL: blk to loc v dk bmish blk; firm to v firm; brittle, quick sharp break when broken; sub vitreous to vitreous Istr, oce matte tex; lignitic to bituminous. 8960': SAND: It gry to v It bmish gry overall; indiv grains elr, transluc and opaque; lower fine to med grain, dom lower to upper fine; submd to ang, dom subang; poor to fair sphere; mod good sorting; dom qtz, sli com to com feld, mnr lithics, tr to v mnr meta seds. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · H[]R~Z[]N WELL LD661N6,. INC_ 9050': SILTSTONE: It to oce med gry, It bmish gry; soft to finn; subblocky to subplaty with v com mded edges; wk to mod argillaceous; grades to claystone with com gritty texture. 9100': COAL: blk to loc v dk bmish blk; finn to v finn; brittle, quick snap when broken; sub vitreous to vitreous Istr; mnr matte tex; lignitic to bituminous. 9175': SAND: It gry overall; elr, transluc, and opaque grains, tr to v mnr blk, bm, gm, and gry; lower fine to lower crse, dom upper fine to med; submd to ang, dom subang; poor sphere; poor to sli fair sorting; IT to mnr 55 ctgs, gen have gryish wht to wht clay matrix, poss kaolinite; wk. to mod calc; dom qtz and feld, trto v mnr lithics and meta seds. 9250': CLAYSTONE: It to med gry, bmish gry, oce dk bmish gry; soft to sli finn; subblocky to subplaty ctgs, v com mded edges; mod to sli strg hydrated; mod to ace strgly calc; grades to argillaceous siltstone. 9330': COAL: dom blk; mod-v h vit Istr; blky ang ctgs; vf fol to loc xln agg apr; grads to dk bm lign SHALE & loc anthracite wI sub met Istr & conch frac 9385': SAND: It gry spkld blk; vf-m gr size; sub ang to sub rd; dom qtz feld 10-15% dk lith clas; loc vis sl calc ant & bm-gry cly mtrx; com rip-up coal & carb shale clas; grads to bm-gry SILTSTONE; assoc highly vit f fol COAL w/loc anthracite 9475': SHALE: dk bm; dull-sl mott vit Istr; gen sub pity ctgs; loc blk coal lams; com f fol tex; grads to bm-bmgry CLAYSTONE & blk vit fol COAL; tr anthracite frags; incr finn SILTSTONE; vf- m gr SAND w/loc calc ant 9525': CLAYSTONE: It to med gry, bmish gry, oce dk bmish gry; soft to sli finn; subblocky to subplaty ctgs, v com mded edges; mod to sli strg hydrated; mod to oce strgly calc; grades to argillaceous siltstone. 9610': COAL: blk, med to dk bmish blk; blocky to subplaty; finn to v finn; brittle, quick snap when broken; sub vitreous to vitreous Istr; com matte tex; lignitic. 9650': SAND: It gry to bmish gry overall; indiv grains clr, transluc and opaque; lower fine to med grain, dom fine to lower med; submd to ang, dom subang; poor to fair sphere; mod good sorting; dom qtz, sli com to com feld, mnr lithics, tr to v mnr meta seds. 9735': COAL: blk to dk bmish blk; blocky to subplaty; finn to v finn; brittle; vitreous Istr; mnr matte tex; lignitic. 9760': SAND: v It to It gry overall; indiv grains elr, transluc and opaque, bm blk, gm; lower fine to med grain, dom fine to lower med; submd to ang, dom subang to ang; poor spher; mod good sorting; dom qtz, com feld, trto v mnr lithics and meta seds. 9855': SAND: v It to It gry overall; indiv grains clr, transluc and opaque; lower fine to med grain, dom fine to upper fine; dom submd to subang, mnr to sli com ang; fair spher; mod good to well sorted; dom qtz, com feld, tr to lithics and meta seds. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCRA\Z cN WELL LOGGING,. INC_ 9930': COAL: blk, mnr dk bmish blk; blocky to subplaty; firm to v firm; brittle, quick snap when broken; irreg to subconchoidal type fracture; sub vitreous to dom vitreous Istr; 000 matte tex; lignitic. 9996': SAND: v It to It gry overall; indiv grains elr, transluc and opaque; lower fine to med grain, dom fine to upper fine; submd to ang, dom subang; poor to sli fair sphere; mod good sorting; dom qtz, com feld, trto lithics and meta seds. 10080': COAL: blk; blky 8ng-sl pity ctgs; vf fol; dom mot sl-h vit Istr; tr sub met Istr; grads to bm pity f follign SHALE; vf-m gr dom qtz SAND wlloe calc emtd zns 10170': COAL: blk; pred hd & vit, loc submetallic Istr; gen hackly, loe eonehoid frae; vf fol to amorph tex; intbd wI SHALE: dk bm-dk gry; dull apr; com blk carb lams; sub pity ctgs 10230': SANDSTONE: It gry; fri-firm ctgs; pred vf-f gr size; weak calc cmt or mixed c1y mtrx; grads to gry-bm SILTSTONE; intbd blk vit f fol COAL & incr abnt dk gry 000 bm sub pity firm SHALE ~ I ·································..........4 Unocal Alaska Resources Chart 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 7500 8000 8500 9000 9500· 10000 10500 ("jrf' rJI'/rJI'....~ ! - í J . Happy ............................................ nocal Alaska Resources Happy Valley RIG: Ku 7/17/20040:00 7/14/200412:00 7/12/2004 0:00 7/912004 12:00 7/7/20040:00 7/4/2004 12:00 7/2/2004 0:00 61291200412:00 6/27/20040:00 6/24/200412:00 6/22/20040:00 6/19/2004 12: 00 o -- 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000 .( f ~. Unocal Alaska Happy Valley #7 Unocal Alaska Happy Valley #7 June/July 2004 Surveys by Baker Survey Incl Azimuth Course TVD VS Coordinates DLS Depth (ft) (0) (0) Lgth (ft) (ft) (ft) N/S (ft) EIW (ft) (°/100') Indicates true MWD inclination, but interpolated azimuths 0 0 0 0 0 0 N 0 W 272 0.55 243.9 272 272.00 -0.71 0.57 S 1.17 W 0.20 443 0.39 195.4 171 442.99 -1.73 1.50 S 2.06 W 0.24 626 0.67 215.9 183 625.98 -3.28 2.96 S 2.86 W 0.18 811 0.63 225.1 185 810.97 -5.03 4.56 S 4.21 W 0.06 943 0.74 224.4 132 942.96 -6.27 5.68 S 5.32 W 0.08 1024 0.74 231.4 81 1023.95 -7.06 6.38 S 6.10 W 0.11 1086 1 226.9 62 1085.95 -7.76 7.00 S 6.80 W 0.43 1147 1.06 235.9 61 1146.94 -8.53 7.68 S 7.66 W 0.28 1205 0.92 285 58 1204.93 -8.82 7.86 S 8.55 W 1.44 1267 2.14 334.4 62 1266.91 -7.77 6.69 S 9.54 W 2.73 1329 3.33 341.4 62 1328.84 -5.17 3.94 S 10.61 W 1.99 1360 3.75 342.3 31 1359.78 -3.43 2.12 S 11.21 W 1.37 1424 3.8 349.6 64 1423.64 0.50 1.96 N 12.22 W 0.75 1488 3.51 355.3 64 1487.51 4.44 6.00 N 12.77 W 0.73 1552 3.57 354.8 64 1551.39 8.31 9.94 N 13.11 W 0.11 1615 3.81 356.2 63 1614.26 12.29 13.98 N 13.43 W 0.41 1679 3.91 355.8 64 1678.11 16.52 18.28 N 13.73 W 0.16 1742 4.53 353.2 63 1740.94 21.05 22.89 N 14.18 W 1.03 1805 5.75 351.4 63 1803.69 26.51 28.48 N 14.94 W 1.95 1868 7.35 352.1 63 1866.27 33.45 35.59 N 15.97 W 2.54 1930 9.26 355 62 1927.62 42.17 44.49 N 16.95 W 3.15 1992 11.08 355.3 62 1988.64 52.89 55.40 N 17.87 W 2.94 2055 12.44 355.5 63 2050.32 65.47 68.20 N 18.90 W 2.16 2117 13.38 356 62 2110.75 79.07 82.01 N 19.93 W 1.53 2179 14.38 357 62 2170.94 93.70 96.86 N 20.83 W 1.66 2242 15.66 358.1 63 2231.79 109.81 113.17 N 21.52 W 2.08 '" ( It Unocal Alaska Happy Valley #7 June/July 2004 Surveys by Baker Survey Incl Azimuth Course TVD VS Coordinates DLS Depth (ft) (0) (0) Lgth (ft) (ft) (ft) N/S (ft) EIW (ft) (°/100') Indicates true MWD inclination, but interpolated azimuths 2304 16.67 358.1 62 2291.33 126.87 130.42 N 22.09 W 1.63 2367 17.56 358.4 63 2351.54 145.21 148.95 N 22.66 W 1.42 2429 18.12 357.7 62 2410.56 163.98 167.94 N 23.31 W 0.97 2494 18.86 358.0 65 2472.21 184.34 188.53 N 24.08 W 1.15 2558 20.14 358.5 64 2532.54 205.47 209.89 N 24.73 W 2.02 2621 21.97 359.5 63 2591.33 227.89 232.52 N 25.11 W 2.96 2684 23.51 359.4 63 2649.43 252.04 256.87 N 25.35 W 2.45 2746 25.33 358 62 2705.88 277.41 282.49 N 25.94 W 3.08 2810 26.68 357.2 64 2763.40 305.11 310.52 N 27.12 W 2.18 2873 28.2 358 63 2819.31 333.76 339.53 N 28.33 W 2.48 2937 28.8 358.7 64 2875.55 363.97 370.05 N 29.21 W 1.07 3000 29.29 358.4 63 2930.63 394.24 400.63 N 29.98 W 0.81 3063 30.78 357.8 63 2985.17 425.40 432.15 N 31.03 W 2.41 3125 32.21 357.5 62 3038.03 457.38 464.51 N 32.36 W 2.32 3189 33.47 356.2 64 3091.81 491.56 499.16 N 34.28 W 2.26 3252 34.77 355.8 63 3143.96 526.27 534.41 N 36.74 W 2.09 3316 35.81 355.6 64 3196.20 562.54 571.28 N 39.52 W 1.63 3380 35.55 355.5 64 3248.19 599.15 608.50 N 42.41 W 0.42 3505 35.28 355.1 125 3350.06 670.13 680.69 N 48.35 W 0.28 3631 35.16 354.5 126 3452.99 741.20 753.05 N 54.93 W 0.29 3756 34.9 354.1 125 3555.35 811.25 824.45 N 62.06 W 0.28 3660.59 \ 882.33 896.93 N 0.32 3884 34.49 354.2 128 69.48 W 3948 34.31 353.6 64 3713.40 917.57 932.88 N 73.33 W 0.60 4074 34.08 353.8 126 3817.62 986.54 1003.27 N 81.10 W 0.20 4200 34.39 352 126 3921.79 1055.33 1073.60 N 89.86 W 0.84 4280 34.28 351.5 80 3987.85 1098.91 1118.26 N 96.34 W 0.38 4334 34.19 352.3 54 4032.49 1128.26 1148.33 N 100.62 W 0.85 4397 34.54 354.7 63 4084.50 1162.86 1183.66 N 104.64 W 2.22 4459 34.8 356.5 62 4135.49 1197.45 1218.82 N 107.34 W 1.70 ,t ,l lit l Unocal Alaska Happy Valley #7 June/July 2004 Surveys by Baker Survey Incl Azimuth Course TVD VS Coordinates DLS Depth (ft) (0) (0) Lgth (ft) (ft) (ft) N/S (ft) EIW (ft) (°/100') Indicates true MWD·inclination, but interpolated azimuths 4521 35.86 359.7 62 4186.08 1232.88 1254.65 N 108.52 W 3.44 4585 36.04 2.1 64 4237.89 1270.25 1292.21 N 107.93 W 2.22 4649 35.95 4.2 64 4289.67 1307.78 1329.76 N 105.86 W 1.93 4713 35.95 8.5 64 4341.49 1345.33 1367.08 N 101.71 W 3.94 4776 35.6 11.6 63 4392.61 1382.09 1403.34 N 95.29 W 2.93 4840 35.51 14.8 64 4444.68 1419.07 1439.56 N 86.79 W 2.91 4903 35.60 18.3 63 4495.94 1455.16 1474.66 N 76.36 W 3.23 4966 36.21 21.8 63 4546.97 1491.11 1509.35 N 63.69 W 3.40 5028 36.39 22.5 62 4596.94 1526.51 1543.35 N 49.85 W 0.73 5090 36.21 21.8 62 4646.91 1561.91 1577.34 N 36.01 W 0.73 5153 36.04 21.5 63 4697.80 1597.81 1611.86 N 22.31 W 0.39 5216 35.95 22.2 63 4748.77 1633.57 1646.23 N 8.53 W 0.67 5278 36.12 21.8 62 4798.90 1668.77 1680.05 N 5.13 E 0.47 5340 36.04 21.5 62 4849.01 1704.07 1713.98 N 18.61 E 0.31 5403 35.42 21.5 63 4900.15 1739.65 1748.21 N 32.09 E 0.98 5465 35.24 20.8 62 4950.74 1774.39 1781.65 N 45.03 E 0.71 5527 34.89 20.4 62 5001.48 1808.99 1814.99 N 57.56 E 0.68 5590 34.54 20.8 63 5053.27 1843.83 1848.58 N 70.18 E 0.66 5654 35.51 20.8 64 5105.68 1879.47 1882.91 N 83.22 E 1.52 5718 37 21.1 64 5157.28 1916.18 1918.26 N 96.76 E 2.34 5782 37.27 20.8 64 5208.31 1953.64 1954.34 N 110.57 E 0.51 5907 37.09 20.4 125 5307.90 2027.01 2025.05 N 137.15 E 0.24 6034 36.39 20.1 127 5409.67 2100.90 2096.32 N 163.45 E 0.57 6161 37.44 20.4 127 5511.21 2175.09 2167.89 N 189.85 E 0.84 6286 37.27 20.1 125 5610.57 2248.86 2239.04 N 216.10 E 0.20 6407 36.78 20.5 121 5707.17 2319.72 2307.38 N 241.38 E 0.45 6535 36.45 20.93 128 5809.91 2393.82 2378.79 N 268.38 E 0.33 6662 36.62 21.35 127 5911.96 2467.08 2449.30 N 295.65 E 0.24 6787 36.98 21.78 125 6012.05 2539.49 2518.94 N 323.17 E 0.35 ~( Unoeal Alaska Happy Valley #7 June/July 2004 Surveys by Baker Survey Inel Azimuth Course TVD VS Coordinates DLS Depth (ft) (0) (0) Lgth (ft) (ft) (ft) N/S (ft) EfW (ft) (°/100') Indicates true MWD inclination, but interpolated azimuths 6886 36.59 22.12 99 6091.34 2596.72 2573.92 N 345.33 E 0.44 6975 36.36 22.42 89 6162.90 2647.72 2622.89 N 365.38 E 0.33 7102 36.55 22 127 6265.05 2720.47 2692.75 N 393.90 E 0.25 7228 37 20.51 126 6365.98 2793.52 2763.05 N 421.24 E 0.79 7355 36.63 20.82 127 6467.65 2867.41 2834.25 N 448.10 E 0.33 7479 36.48 20.44 124 6567.26 2939.13 2903.37 N 474.12 E 0.22 7603 36.54 19.05 124 6666.93 3011.03 2972.80 N 499.04 E 0.67 7727 35.82 19.05 124 6767.02 3082.57 3042.00 N 522.93 E 0.58 7851 35.51 14.34 124 6867.78 3153.75 3111.20 N 543.70 E 2.23 7978 33.95 12.87 127 6972.15 3225.59 3181.51 N 560.74 E 1.39 8106 33.29 10.84 128 7078.74 3296.17 3250.86 N 575.31 E 1.02 8234 33.14 11.14 128 7185.83 3366.10 3319.69 N 588.67 E 0.17 8298 33.09 9.97 64 7239.44 3400.99 3354.06 N 595.08 E 1.00 8425 32.41 8.65 64 7346.11 3469.84 3422.07 N 606.22 E 1.05 8489 32.03 8.42 64 7400.26 3503.95 3455.81 N 611.28 E 0.62 8552 31.84 7.35 63 7453.72 3537.26 3488.82 N 615.86 E 0.95 8615 31.07 7.21 63 7507.46 3570.14 3521.43 N 620.02 E 1.23 8677 30.21 7.49 62 7560.81 3601.73 3552.77 N 624.06 E 1.41 8740 29.66 6.5 63 7615.40 3633.17 3583.97 N 627.89 E 1.17 8802 30.92 6.09 62 7668.94 3664.44 3615.05 N 631.32 E 2.06 8866 31.11 4.76 64 7723.79 3697.41 3647.88 N 634.44 E 1.11 8929 31.02 4.69 63 7777.75 3729.89 3680.28 N 637.12 E 0.15 8993 30.89 5.68 64 7832.64 3762.80 3713.06 N 640.09 E 0.82 9056 30.32 3.53 63 7886.86 3794.84 3745.03 N 642.67 E 1.96 9118 30.04 2.91 62 7940.46 3825.95 3776.14 N 644.42 E 0.68 9182 29.84 3.71 64 7995.92 3857.83 3808.03 N 646.26 E 0.70 9245 29.56 2.54 63 8050.64 3888.98 3839.20 N 647.97 E 1.02 9308 28.03 1.73 63 8105.85 3919.22 3869.52 N 649.10 E 2.51 9432 26.49 0.62 124 8216.08 3975.74 3926.30 N 650.28 E 1.31 Unocal Alaska Happy Valley #7 June/July 2004 Surveys by Baker Survey Incl Azimuth Course TVD VS Coordinates DLS Depth (ft) (0) (0) Lgth (ft) (ft) (ft) N/S (ft) EIW (ft) (0/100') Indicates true MWD inclination, but interpolated azimuths 9558 25.06 359.81 126 8329.54 4030.16 3981.09 N 650.50 E 1.17 9687 22.49 357.79 129 8447.58 4081.66 4033.07 N 649.46 E 2.09 9812 21.71 357.13 125 8563.40 4128.06 4080.05 N 647.38 E 0.65 9876 20.49 356.42 64 8623.10 4150.74 4103.05 N 646.08 E 1.95 9940 19.8 356.23 64 8683.19 4172.42 4125.05 N 644.67 E 1.08 10002 18.95 353.38 62 8741.68 4192.53 4145.53 N 642.82 E 2.05 10067 18.03 351.25 65 8803.32 4212.49 4165.96 N 640.07 E 1.76 10131 17.96 350.11 64 8864.19 4231.48 4185.47 N 636.87 E 0.56 10195 17.42 348.9 64 8925.17 4250.05 4204.59 N 633.33 E 1.02 10221 17.13 348.63 26 8949.99 4257.39 4212.16 N 631.83 E 1.16 H\I#7 Vertkal SeclÍ<>I1 6.112 Azimuth _.Fool HW1 Plan View 1¡¡ '" 'T ¡ '" ;¡ .!II '" :: ~ ! i '" kstF""'I ~I.......................................... Unocal Alaska Resources WELL SCHEMATIC: Happy Valley #7 I ' I 18518" Conductor @47' 16" Hole to 1008' 13 318" 54.5# Casing @ 1 008' 12114" Hole to 4341' 9 518" 40# Casing @ 4331' 8112" Hole to 6916' 7" 26# Liner 4185-6912' ) I / 6118" Hole to 10274' 3112" 9.3# Liner 6741-10272' Data recorded & presented by HtfRitZcN "¡ELL LObbiNG. INt:. 'I II II I.................................... Unocal Alaska Happy Valley #7 Water Base Drilling Mud DATE DEPTH MW VIS PV YP GELS NAPIWATER FC SOLIDS SAND CI- Ca 6/17/04 378' 9.15 68 11 34 16/21/23 0.0/94.3 1 2.7 1.5 36500 200 6/18/04 1008' 9.05 66 15 40 19/22/23 0.0/95.1 1 3.0 3.5 23000 220 6/19/04 1008' 8.95 54 11 33 16/20/22 0.0/95.5 1 2.7 0.75 21000 280 6/20/04 1008' 8.85 . 43 9 21 10/14/16 0.0/96.2 1 1.6 0.05 26000 240 6/21/04 2360' 8.85 41 7 20 10/13/14 0.0/96.2 1 1.4 0.7 29000 280 6/22/04 3260' 9.00 46 13 25 11/20/25 0.0/95.2 1 2.1 1.5 32000 200 6/23/04 4341' 9.15 46 10 25 10/23/26 0.0/94.3 1 4.8 0.1 10000 120 Oil Base Drilling Mud DATE DEPTH MW VIS PV YP GELS NAPIWATER FC SOLIDS SAND HTHP NAPIWAT% 6/27/04 4699' 9.20 76 44 13 7/13/15 90.1/9.9 0 7.6 0.05 7.2/200 81.0/10.0 6/28/04 5894' 9.20 65 34 13 9/21/23 86.7/13.3 0 8.4 0.05 8.0/200 78.0/12.0 6/29/04 6143' 9.00 62 35 11 6/14/16 88.9/11.1 0 8.7 0.05 9.2/200 80.0/10.0 6/30/04 6462' 8.90 65 36 13 6/14/16 87.8/12.2 0 8.6 0.1 8.5/200 79.0/11.0 7/1/04 6527' 8.80 66 38 12 5/10/12 88.0/50.0 0 8.6 0.1 8.8/200 79.0/11.0 7/2/04 6764' 8.80 78 45 22 6/12/12 77.0/23.0 0 6.0 0.1 5.2/200 70.4/21.0 7/3/04 6772' 8.50 50 22 10 4/5/7 79.3/20.7 0 5.5 0.1 8.6/200 73.0/19.0 7/4/04 6772' 8.50 56 31 8 3/4/5 80.6/19.4 0 5.2 0.2 6.3/200 74.6/18.0 7/5/04 6916' 8.65 66 38 10 5/8/9 81.4/18.6 0 6.3 0.2 6.51200 74.6/17.0 7/6/04 6916' 8.70 67 38 11 6/8/10 81.4/18.6 0 6.5 0.1 6.7/200 74.4/17.0 7/7/04 6916' 8.70 68 24 11 5/7/9 84.6/15.4 0 6.9 0.1 8.8/200 77.2114.0 7/8/04 6925' 8.60 70 26 13 5/11/13 83.6/16.4 0 6.5 0.1 8.9/200 76.6/15.0 7/9/04 6925' 8.60 60 18 9 5/8/9 84.7/15.3 0 6.6 0.1 8.9/200 77.6/14.0 7/10/04 6945' 8.50 36 6 13 5/7/8 0/98.3 0 1.4 0 0/98.3 Water Base Drilling Mud DATE DEPTH MW VIS PV YP GELS NAPIWATER FC SOLIDS SAND CI- Ca 7/11/04 7404' 8.60 63 14 20 6/13/15 2.5 1 2.5 0.2 1100 20 7/12/04 8500' 8.60 50 14 20 4/7/9 0.0/97.5 1 2.2 0.1 400 40 7/13/04 9404' 8.65 52 14 21 6/818 0.0/97.2 1 2.5 0.1 300 40 7/14/04 10274' 8.72 51 16 19 6/8/9 0.0196.7 1 3.0 0.1 200 40 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCRlzcN . ; ;,.. operator well unocal Alaska Happy valley #7 Kenai Borough M.Monnin, T.Theall Location Report: For: NL Morning Report: Report No.: 2 Footage: Horizon Geologists: ·1534 Doug Milham, Bernie Leas Date: 06/22/2004 Time: 0500 Depth: 2608 "24 Hour summary: Drilled Latest Mud Report: Latest survey(s): DRILL RATE High: Low: Average: Current: Interval 1008 / 1110 1110 / 1700 1700 / 2608 Interval - Remarks: survey@ 2558': 20.14 deg, 358.5 azi, TVD 2532' DITCH GAS High: 300 5 140 109@2608 ·22 chrom comp: Trip Gas: , Conn Gas: Low: Average: Current: ·1 . 2 . 3@2608 LITHOLOGY ¡ . ¡ synopsl s . siltstone and clay. Sand, claystone, with minor coal stringers. . predominately Sand with claystone and siltstone. HYDROCARBON SHOWS Gas Description · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · :. , r:. HCR·J>Z eN operator well unocal Alaska Happy valley #7 Kenai Borough 3 t f, Location Report For: Morning Report Report No.: M.Monnin, T.Theall Date: 06/23/2004 Time: 05:00 Depth: 3495 24 Hour Summary: Footage: Horizon Geologists: 887 Doug Milham, Bernie Leas Dri 11 ed ahead r01:a1:i ng and s 1 i di ng Latest Mud RepOr1:: Latest survey(s): DRILL RATE High: . MW 9.05 V 44 PV 11 YP 23 F 8.4 FC 1/32 3380': 35.55 inc, 355.5 azi, TVD 3248, DITCH GAS High: SD 0.10 pH 9 CL 27,500 608.52N, 42.43w I chrom comp: ¡ I Trip Gas: Conn Gas: I All C1 I ! ! I ¡ ¡ ¡ I LOW: Average: Current: 247@2844 5@3123 88 . 64@3495 LOW: Average: Current: 72@3351 1@2895 11 4@3495 Interval LITHOLOGY ¡ synopsis Tuttaceous clayS1:one, very Fine 1:0 Fine sands, Minor amoun1:s Coal. 2608 / 3495 Interval HYDROCARBON SHOWS , Gas Description Remarks: · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ,;. h:- HeRtZ eN operator well unocal Alaska Happy valley #7 Kenai Borough M.Monnin, T.Theall Location Report For: 'i~;,·1 N *'~ ~ ~ Morning Report Report No.: 4 Date: 06/24/2004 Time: 0200 Depth: 4340 24 Hour Summary: Footage: 845 Horizon Geologists: Doug Milham, Bernie Leas Drilled ahead to casing point at 4341'. Latest Mud Report: Latest survey(s): DRILL RATE High: Low: Average: current: 4280': 34.28 inc, 351.50 azi, TVD 3987.85, 1118.28' N, 96.36' .W DITCH GAS 320@3718 High: 49@3718 Chrom comp: . All c1 11@4158 LOW: 0@4192 Trip Gas: 79 Average: 9 conn Gas: 72@4340 Current: . 11@4340 Interval LITHOLOGY synopsis claystone, Tuffaceous claystone, very Fine to Fine sand, Interbedded coal. 3495 / 4341 Interval HYDROCARBON SHOWS Gas . Description Remarks: Daily Cost: $1,675.00 ~ I · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ,; h;. HCRlzcN H N I~ ~>& Morning Report Da~e: . 06/26/2004 Time: 0000 Depth: . 4340 24 Hour Summary: operator Well Location unocal Alaska Happy valley #7 Kenai Borough Report For: 5 Report No.: M.Monnin, T.Theall Footage: Horizon Geologists: Ran 9 5/8" casing. Lates~ Mud Report: Latest survey(s): DRILL RATE High: Low: Average: Current: DITCH GAS High: Low: Average: current: Interval LITHOLOGY synopsis HYDROCARBON SHOWS Gas Interval . Description Remarks: Daily Cost: $2,225.00 o Doug Milham, Bernie Leas chrom comp: Trip Gas: COnn Gas: · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCRlzcN . ;.;~ operator well unocal Alaska Happy valley #7 Kenai Borough 6 ~ Location Report For: n Morning Report Report No.: M.Monnin, T.Theall Date: 06/27/2004 Time: 0000 Depth: 4699 24 Hour summary: j¡. ~··A ",¡. Footage: 359 Horizon Geologists: . Doug Milham, Bernie Leas Latest Mud Report: Latest Survey(s): DRILL RATE Tested BOP; Picked up drill pipe; drilled cement; dril led ahead with 8.5" bit. . MW 9. 2 vi s 57 4649': 35.95 inc, 4.20 azi, TVD 4289.67, 1329.78'N, 105.88'w 228 @ 4691 o @ 4593 106 , 206 @ 4699 LITHOLOGY . synopsis predominantly Tuftaceous Siltstone, claystone, with interbedded , very fi ne sand. High: Low: Average: Current: Interval 4341 / 4699 HYDROCARBON SHOWS Interval ¡ Gas I DITOf GAS High: LOW: Average: Current: 25 @ 4557 o @ 4675 11 o @ 4699 chrom camp: All C1 Trip Gas: COnn Gas: . Description Remarks: Daily Cost: $2,175.00. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · . ; ;t:- HCR¿fzcN Operator well Location unocal Alaska Happy valley #7 Kenai Borough Marty Monnin/Troy Theall 9 ~ ~ ø~ ~ Report For: Morning Report Report NO.: Date: 06/29/2004 Time: ' 0000 Depth: 5895 24 Hour summary: Footage: Horizon Geologists: 1196 Doug Milham, Bernie Leas Dril led ahead with 8.5 hole. Latest Mud Report: Latest survey(s): 5782': 37.27 inc, 20.80 azi, TVD 5208.31, 1954.34N, 110.57E DRILL RATE DITCH GAS High: 385 @ 5096 High: 13S@ chrom camp: All C1 5452 Low: 1S@ 5895 Low: 12 @ 5873 . Trip GaS: Average: 180 Average: 46 ' Conn Gas: Current: . 15 @ 5895 Current: LITHOLOGY Interval Synopsis predominantly very tine to fine sand with siltstone, claystone, and coal seams. 4699 / 5895 Interval HYDROCARBON SHOWS Gas , Deseri ption Remarks: Daily Cost: $2,175.00 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · . ;,,.. He RlZ eN operator well unoca1 Alaska Happy valley #7 Kenai Borough Marty Monnin / Troy Theall 10 Location it; $N ~ Report For: Morning Report Report No.: Date: 06/30/2004 Time: . 0000 Depth: 6089 24 Hour summary: ~ 194 Doug Milham, Bernie Leas Footage: Horizon Geologists: Hole started taking tluid at 5891'. circulated and reduced MW to 8.9. Drilled ahead. Latest Mud Report: latest survey(s): DRILL RATE High: LOW: Average: Current: 6034': 36,39 incl, 20.10 azi, TVD 5409.69', 2096.32'N, 163.43'E DITCH GAS 306 @ 5956 High: ' 97 @ 6080 . chram camp: All Cl 20 @ 6085 LOW: 15 @ 6083 Trip Gas: 228 Average: 24 Conn Gas: 26 @ 6089 Current: 20 @ 6089 Interval LITHOLOGY synopsis , very fine to fine sand with claystone and interbedded coals. 5895 / 6089 Interval HYDROCARBON SHOWS Gas . Description Remarks: Daily Cost: $2,175.00 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ;: f~~ HCRfzcN operator well Location unocal Alaska Happy valley #7 Kenai Borough Don Stagner / Troy Theall 11 Date: 07/01/2004 Time: 0000 Depth: 6453 24 Hour summary: f,lt ~ j;~ ~~ Morning Report Report For: Report No.: Footage: Hòrizon Geologists: . 364 Doug Milham, Bernie Leas Drilled ahead from 6089' to 6453'. POOH 7 stands. Monitor well. Hole began taking tluid. Latest Mud Report: Latest survey(s): DRILL RATE High: LOW: Average: CUrrent: Interval 6089 / 6453 Interval DITOf GAS High: LOW: Average: Current: 111 @ 6274 10 @ 6390 57 42 @ 6453 ~ 275 @ 6352 20 @ 6090 181 183 @ 6453 LITHOLOGY . synopsis Sand, very fine to tine; claystone, light to medium gray; coal, dk brown - black. Chrom COIDp : All cl Trip Gas: COnn Gas: HYDROCARBON SHOWS Gas Description Remarks: Daily Cost: $2,175.00. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCRlzcN operator well Location unoca1 Alaska Happy Valley #7 Kenai Borough Don stagner / Troy Theall 12 H~ ~ Report For: Morning Report Report NO.: Date: ·07/02/2004 Time: 0000 Depth: 6526 24 HoUr sUlllÍlary: I Footage: I 71 Horizon Geologists: Doug Milham, Bernie Leas Drilled ahead trom 6462'. Lost returns at 6526'. Latest Mud Report: Latest survey(s): DRILL RATE DITOI GAS High: chrom camp: No Returns Trip Gas: ~ conn Gas: NO Returns No Returns No Returns No Returns High: 204 @ 6465 Low: 49 @ 6491 Average: 137 Current: 111 @ 6526 LOW: Average: Current: LITHOLOGY Interval 6462 / 6526 synopsis No Returns. Interval HYDROCARBON SHOWS Gas Description Remarks: Daily Cost: $2,175.00. -1If -: . · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCRlzcN operator well unocal Alaska Happy valley #7 Kenai Borough Don stagner / Troy Theall 13 Location '*® ¡; i¡fli ~; Morning Report Report For: Report No.: Date: 07/03/2004 Ti me: 0000 Depth: 6739 24 Hour summary: POOH. 210 @ 6736 12 @ 6533 76 73 @ 6739 LITHOLOGY synopsis sand, very fine; Siltstone, dk gray; claystone, med gray; Thin coal stri ngers. Latest Mud Report: Latest Survey(s): DRILL RATE High: LOW: Average: Current: Interval 6526 / 6739 Footage: 213 Horizon Geologists: Doug Milham, Bernie Leas Change BHA. RIH. Drill ahead. DITOI GAS High: . chrom camp: Trip Gas: Conn Gas: All cl 33 @ 6568 . 6 @ 6527 10 33 @ 6709 LOW: Average: Current: Interval HYDROCARBON SHOWS . Gas Descri pti on Remarks: Dai Iy Cost: $2,175.00. ;;"f: ' · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · He R zeN operator well unocal Alaska Happy valley #7 Kenai Borough Don Stagner / Troy Theall 14 Location i#"t! !!.~ UN ,~: Morning Report Report For: Report No.: Date: 07/04/2004 Time: 0000 Depth: 6772 24 Hour summary: . 33 Doug Milham, Bernie Leas Footage: Horizon Geologists: Drilled ahead LO 67721. build volume. Encountered losses. Shut down to Latest Mud Report: Latest survey(s): DRILL RATE High: DITCH GAS High: Low: Average: Current: 4 @ 6739 2 @ 6741 2 2 @ 6772 chrom comp: . All C1 Trip Gas: COnn Gas: LOW: Average: Current: 123 @ 6760 41 @ 6757 75 49 @ 6772 Interval LITHOlOGY . synopsis Poor sample recovery and quality. Bypassed shakers / No returns. 6739 / 6772 Interval HYDROCARBON SHOWS Gas Description Remarks: Daily Cost: $2,175.00. "¡'f": . · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCRl,zcN operator well unoca1 Alaska Happy vall ey #7 Kenai Borough Don stagner/Troy Theall 15 Location Report For: '5'!'~ 'ii12 Morning Report Report No.: Date: .7/5/04 Time: 00 :00 Depth: 6772 24 Hour summary: Footage: ¡ 0 Horizon Geologists: I Doug Milham, Fred pulka ! i I I stage into hole with partial returns. Build Volume. squeeze gunk plug. sta~e into hole losing 20-30 bph 6400-6600' and 50 bph below 6600 . Latest Mud Report: Latest survey(s): DRILL RATE High: DITCH GAS High: Low: Average: Current: ¡ 20 I 13 i 5 6 Low: Average: Current: : n/a . n/a n/a n/a LITHOLOGY chrom comp: Trip Gas: 20 . Conn Gas: Inte rva 1 n/a . synopsis n/a ! I HYDROCARBON SHOWS I Gas ¡ I n/a ¡ Remarks: Daily co~t: $2,17S.ob Interval Description nfa ~f -: . · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCRt,zcN IN Morning Report Date: 107/06/2004 Time: ! 00:00 Depth: , 6915 24 Hour Sunnary: Operator well unocal Alaska Happy valley #7 Kenai Borough Don Stagner/Troy Theall 16 Location Report For: Report NO.: Footage: Horizon Geologists: 143 Doug Milham, Fred pulka Drilled 6772-6915' with 20-100 bph mud losses. preparing to run 7" casing liner. Latest Mud Report: Latest survey(s): DRILL RATE High: 156 @ 6839 LOW: 15 @ 6793 Average: 62 Current: n/a LITHOLOGY DITCH GAS High: Low: Average: Current: Interval 6772-6930' 6830-6850' 6850-6915' I 33 @ 6845 ¡ I 2 @ 6772 111 ! i n/a ! I Chrom camp: I Trip Gas: i I Conn Gas: ¡ none 44 @ 6772' synopsis 60-90% sand, 0-10% siltstone, 10-30% claystone; 0-10% shale .20-50% coal, 20-40% sand, 30-40% claystone, 0-10% siltstone 30-70% Sand, 30-70% Claystone, 0-10% siltstone, 0-10% sandstone HYDROCARBON SHOWS Gas Interval n/a n/a n/a Remarks: Daily Cost: $2,175.00 Description *>f -: · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · H ·····N .... CR,!ZC ,. > "...~. Morning Report ~ Date: 07/07/2004 Time: . 00:00 Depth: 6915 24 Hour su.-ary: operator well Location Report For: Report No.: Footage: Horizon Geologists: Test BOPE. Run 7" casing Liner. unocal Alaska Happy Valley #7 Kenai Borough Don stagner/Troy Theall 17 10 I Doug ,Milham, I Berme Leas, I i Fred Pulka, Lowell price Latest Mud Report: MW 8.7 v 67 PV 38 YP 11 F 6.7 FC 0 SO 0.1 SOL 6.5 Latest survey(s): DRILL RATE High: LOW: Average: Current: Interval N/A N/A N/A Interval N/A N/A N/A Remarks: N/A i N/A \ N/A N/A LITHOLOGY I synopsis ~ HYDROCARBON SHOWS , Gas ¡ ¡ Daily Cost: $ 2,175.00 DITCH GAS High: N/A chrom comp: LOW: N/A Trip Gas: . 28 u (7" @ 5820') Average: N/A . Conn Gas: ; N/A Current: N/A , Description ->;( ~. . · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ;. ;i'(- He.R~: zeN ~ Morning Report Date: 07/08/2004 Time: . 00 :00 Depth: 6915 24 Hour summary: operator Well unoca1 Alaska Happy valley #7 Kenai Borough Don stagner/Troy Theall 18 Location Report For: Report No.: Footage: . 0 Horizon Geologists: Doug Milham, Fred pulka, . Bernie Leas, Lowell price I Run and cement 7" 1 i ner. woe. Pressure test BOPE and liner. Latest Mud Report: Latest survey(s): DRILL RATE High: Low: Average: Current: Interval N/A N/A N/A Interval N/A N/A N/A Remarks: I N/A \ DITCH GAS High: N/A N/A : N/A ! LITHOLOGY I synopsi s ; ! i ¡ ¡ HYDROCARBON SHOWS Gas LOW: Average: current: I Desc ri pti on j i I Dai Iy Cost: $ 2,175.00 N/A N/A N/A , N/A i chrom camp: . Trip Gas: Conn Gas: 22 u , (cementi ng) N/A · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCRlzcN ,;. h;. .rr Morning Report Report No.: Date: : 07/09/2004 Time: 00:00 Depth: ~ 6927 24 Hour sunnary: operator well unocal Alaska Happy valley #7 Kenai Burough Don sLagner, Troy Theall 12 Loca'tion ~¡-¡ Report For: ,~~ Foo'tage: 12 Horizon Geologists: Doug Milham, Bernie Leas, Fred pulka, Lowell Price RIH 6 1/8" Lools and MWD. Drill 6915-27'. 60bph losses began aL 6922'. POH. Latest Mud Repor't: La'tes't survey(s): DRILL RATE High: LOW: Average: Curren't: 77 @ 6927 , 19 @ 6918 34 N/A LITHOLOGY In'terva 1 6915-6927' DITCH GAS High: Low: Average: current:: chrom Comp: Trip Gas: Conn Gas: I I j N/A I " N/A i 4 @ 6917 I 2 @ 6916 13 I N/A synopsis , 80% sand and sandsLone, 20% claysLone Interval N/A HYDROCARBON SHOWS ! Gas ! i ¡ i I Remarks: Dai Iy COSL: $ 2175.00 Description · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · :.. ;~ He Ri~fi zeN operator well Location unocal Alaska Happy valley #7 Kenai Burough Don Stagner/Troy Theall 20 Report For: :k i~ Morning Report Report No.: Latest Mud Report: Latest survey(s): DRILL RATE High: Footage: ¡ 0 Horizon Geologists: !I' Doug Milham, Bernie Leas I Fred pulka, Lowell Price squeeze two 30~bl cement plugs at 6~96'. POH. RIH to tag/drill cement & drill ahead. MW 8.6 FV 60 PV 18 YP 9 SOL 6.6 SD 0.1 . N/A Date: 07/10/2004 Time: 00:00 Depth: 6927 24 Hour su.-ary: DITCH GAS High: Low: Average: Current: LOW: Average: current: . i N/A I N/A N/A N/A , N/A N/A N/A . N/A chram camp: Trip Gas: Conn Gas: N/A Interval N/A LITHOLOGY i . I synopsls Interval N/A HYDROCARBON SHOWS Gas Description . , I j i I Remarks: Daily Cost: $ 2175.00 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · , ;. h:- He RlzeN operator well unocal Alaska Happy valley #7 Kenai Burough Don Stagner/steve Lawrence Location t; ~ Report For: Morning Report Report No.: 21 Date: i 07/11/2004 Time: 00:00 Depth: ¡ 6945 ! 24 Hour suminary: Footage: 18 Horizon Geologists: Doug Milham, Bernie Leas . Fred pulka, Lowell Price Tag & Drill cement Retainer @ 6794. RIH and dri II to 6945'. change over to water based mud. Latest Mud Report: Latest survey(s): DRILL RATE High: ¡ N/A ¡ DITCH GAS High: ! chrom comp: Trip Gas: Conn Gas: LOW: \110 @ 6930 j ¡ 1 @ 6927 LOW: i ! 168u (circ @ , 6870') 3 @ 6936 1 @ 6927 2 2 @ 6945 Average: 44 Current: I N/A LITHOLOGY Average: Current: Interval 6927-6945' . synopsi s 80% sand, 16% claystone, 4% coal Interval N/A HYDROCARBON SHOWS Gas I .. ¡ Descrlptlon ! i ! Remarks: Daily Cost: $ 2175.00 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ; ;~ HCRlzcN Operator well unocal Alaska Happy valley #7 Kenai Burough Don stagner/steve Lawrence Location Report For: N Morning Report Report No.: 22 I 07/12/2004 ! 10:00 ¡ Depth: ¡ 7490 24 Hour sunÌnary: Footage: 545 Horizon Geologists: Doug Milham, Bernie Leas Fred pulka, Lowell Price Date: Time: pick up MWD & Mudmotor. Drill ahead 6945-7480'. Latest Mud Report: Latest survey(s): DRILL RATE DITCH GAS High: chrom camp: ; Trip Gas: . Conn Gas: High: low: Average: Current: Current: 545 @ 7138 15 @ 6950 90 . 25 @ 7490 110 u (6945') 260 @ 7235 Interval : 0 @ 7224 ¡ 1130 i ¡ 1138 @ 7490 LITHOLOGY synopsis I sand and cl aystone wi th - 7300-7380' local coal Interbeds at 7000-7145' & Low: Average: 6945-7490' HYDROCARBON SHOWS Interval N/A ¡ Gas Description Remarks: Daily Costs: $ 2175.00 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCRlzcN Date: 07/13/2004 Time: 00:00 Depth: 8583 24 Hour summary: ;. h:- operator well unocal Alaska Happy valley #7 Kenai Burough Don stagner/steve Lawrence Location [if ~ Morning Report Report: For: Report No.: 23 Footage: Horizon Geologists: 1093 Doug Milham, Bernie Leas Fred pulka, Lowell Price . Dril} ahead 7490-8596' with 40-75 bph mud losses. Latest Mud Report: Latest survey(s): DRILL RATE w 8.6 v SO pv 14 yp 20 fil 7.0 fc 1/32 s 400 8489' 32.03 d 8.42 azi, TVD 7400.3', 3455.8' N, 611.3' E DITCH GAS High: LOW: Average: Current: Interval 7490-8596' Interval N/A High: · 119 @. 7894 · 3 @ 7535 · 25 .. 20 @ 8596 Trip Gas: Conn Gas: . N/A 10-25 units I 316 @ 8292 ! . 4 @. 7655 139 .. 177 @. 8596 LITHOLOGY synopsis cyclic interbeds of coal-rich beds and fine sands at about 100- 150' intervals . chrom comp: low: Average: Current: HYDROCARBON SHOWS Gas . Description ¡ I ¡ Remarks: Daily Cost: $ 2175.00 I I · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCRrlZcN operator well Location unocal Alaska Happy valley #7 Kenai Burough Don stagner/steve Lawrence "'UHa~.J ~ ~ Morning Report Report For: Report No.: 24 Date: 07/14/2004 Time: 00:00 Depth: 9421 24 Hour summary: Footage: Horizon Geologists: 838 Doug Milham, Bernie Leas Fred pulka, Lowell Price Drill and survey 8583-9421'. Latest Mud Report: Latest survey(s): DRILL RATE 9308' 28.03 d, 1.73 azi, 8105.8' TVD, 3869.5' N, 649.1' E DITCH GAS High: 287 @ 8936 High: 143 @ chrom comp: 8945 LOW: 3 @ 8769 Low: 2 @ 8755 Trip Gas: N/A Average: . 121 Average: 38 conn Gas: none Current: 36 @ 9417 Current: 3 @ 9421 LITHOLOGY In'terva 1 8583-8850' 8850-9100' 9100-9390' synopsis Dominant sand, sandstone & siltstone with Local Coal Interbeds. Coal Beds separated by sands & sandstone Mostly sand Beds Grading to More coal Interbeds with Depth Interval N/A HYDROCARBON SHOWS Gas Description Remarks: Daily cost: $ 2175.00 -.>,. -:. . · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCRJ.zcN ope rat:or well Locat:ion Report: For: unocal Alaska Happy valley #7 Kenai Burough S. Lawrence, Marty Monnin if Æ i!! i~ i Morning Report Report No.: 25 Date: . 07/15/2004 Time: 0:00 Dept:h: 10274 24 Hour sURnary: Footage: Horizon Geologists: 853 Doug Milham, Bernie Leas Fred pulka, Lowell Price Drill and survey 9421 to 10274'. Latest: Mud Report: Latest: survey(s): 10221' 17.12 d 348.6 azi, 8950' TVD, 4277.5' N, 628.6' E DRILL RATE DITCH GAS High: 337 @ 9931 High: 164 @ chrom comp: 9936 LOW: 2 @ 9491 LOW: 1 @ 9495 Trip Gas: None Average: 91 Average: 34 Conn Gas: 0-78 units Current: 37 @ 10274 Current:: 20 @ 10274 LITHOLOGY Interval 9421-9910' 9910-10274' l synopsis Dominant Sand and siltstone with Local coal Interbeds predominance of coal Beds with Less Sand and siltstone Interval N/A HYDROCARBON SHOWS Gas . Description Remarks: Daily Cost: $ 2175.00 -;t!f': . · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HDR~zcN c ~r Morning Report Date: ·07/16/2004 Time: . 00 :00 Depth: 10274 24 Hour summary: operator well unocal Alaska Happy valley #7 Kenai Burough S. Lawrence, Marty Monnin Location Report For: Report No.: 26 Footage: 0 Horizon Geologists: Doug Milham, Bernie Leas . Fred Pul kat Lowell pri ce Circulate after wiper Trip. Circulate and Monitor Gases at , the 7" Liner shoe. . Latest Mud Report: Latest survey(s): DRILL RATE High: N/A LOW: N/A Average: N/A Current: . N/A LITHOLOGY N/A Interval N/A , synopsis Interval N/A HYDROCARBON SHOWS Gas DITCH GAS High: low: Average: Current: . Descri pti on N/A N/A N/A N/A I chrom Comp: I. Trip Gas: 202 u (wí per Gas) conn Gas: Remarks: 765 u at Total Gas while Circulating at the 7" shoe (5:10 PM). -;If -: ' · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCRlzcN ',,'iIT t ¥af'IH; ~ Morning Report Date: 07/17/2004 Time: 00 :00 Depth: 10274 24 Hour Summary: operator well Location unocal Alaska Happy valley #7 Kenai Burough S. Lawrence, Marty Monnin Report For: Report No.: 27 Footage: 0 Horizon Geologists: . Doug Milham, Bernie Leas, . Fred pulka, Lowell Price Run Schlumberger Electrical Logs to +/- 8400'. Running 3 1/2" Liner. Latest Mud Report: Latest survey(s): ~ N/ A DRILL RATE High: N/A LOW: N/A Average: N/A current: N/ A LITHOLOGY Interval N/A synopsis Inte rva 1 N/A HYDROCARBON SHOWS . Gas DITOI GAS High: LOW: Average: current: . Description Remarks: Daily Costs: $ 2175.00 iN/A N/A N/A N/A : chrom Camp: Trip Gas: conn Gas: 30 U (POH) N/A -;'f : . · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCRlzcN ,~ U~ g: U'~ Morning Report Date: 07/18/2004 Time: 00:00 Depth: 10274 24 Hour summary: operator well Location Report For: Report No.: unocal Alaska Happy valley #7 Kenai Burough S. Lawrence, MarLY Monnin 28 Footage: 0 Horizon Geologists: Doug Milham, Bernie Leas, . Fred pulka, Lowell Price , Running 3 1/2" Liner. Latest Mud Report: Latest survey(s): N/A DRILL RATE High: N/A LOW: N/A Average: N/ A Current: N/A LITHOLOGY Interval . N/A synopsis Interval N/A HYDROCARBON SHOWS Gas DITot GAS High: Low: Average: Current: Description Remarks: Daily Costs: $ 2175.00 N/A N/A N/A N/A chrom comp: Trip Gas: None . COnn Gas: ~f ~ ' · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · HCRfjZeN ~~~; (; iN ~.~ .~. N Morning Report Date: 07/19/2004 Time: ·00:00 Depth: : 10274 24 Hour summary: operator well Location Report For: Report No.: unocal Alaska Happy valley #7 Kenai Burough S. Lawrence, Marty Monnin 29 Footage: 0 Horizon Geologists: Doug Milham, Bernie Leas, Fred pulka, Lowell Price Land 3 1/2" Casing at 10272'. Nipp1e Down BOPE. Latest Mud Report: Latest survey(s): ' N/A DRILL RATE High: Low: Average: Current: N/A N/A N/A N/A Interval N/A LITHOLOGY , synopsis Interval N/A HYDROCARBON SHOWS Gas DITOI GAS High: Low: Average: Current: Description Remarks: Final Report tor Happy valley #7 N/A N/A N/A N/A chrom comp: Trip Gas: None Conn Gas: -.;.If ~. ................. ...... o · · · · · · · · · · · · · · · · þ þ þ . - .................... ............... ......4 · · · · · · · · · · · · · · · · · - ---1 · · · . . · · · · · · · · · · · · · · · · · - ...... - '- .... ... .... .... .... .................. ...... ~ 1~ .. · · · · · · · · · · · · . . · · · · · · · · · · · · · · · · · · - o · · · · · · · · · · .. ;Ii(: o or- -- · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · !. · · · · '" , ., o "..... 5000 4000 3500 1500 1000 -- 500 8 ~ ~ 3 Annular Time o - ~ 31 ¡g ~ .;..: N ~ ~ w- N , æ ~ w- N ~ ¡(¡ \'! w- N ~ ~ \'i! w- N J ~ ~ 0 If! m e ~ IS ..... .... ~ ~ ~ ~ ~ Q1 ~ $t ¢} ¢} ¢} ¢} ¢} ¢} ¢} ð$ ..... .... .... .... .... .... .... ..... 1, 14 12 æ ~ !5 æ ~ f¡ ~ I?j Ifi IÌÒ IÌÒ IÌÒ IÌÒ T"" W'" W'" .- I 13 I 11 [ ¡ in ~ IR æ F.I E ~ lfi ~ IS ~ ~ ~ t:i t:i S ~ $I i-' ~ N ~ ~ '!'" -or '!'" ... i'I:I i'I:I i'I:I i'I:I i'I:I i'I:I i'I:I ~ ~ ~ i'I:I i'I:I .. .... .... ... .... .... r '!'" .... TlmtI 1 16 1500 I , , I (') æ E:j ~ IS 11'" ~ ~ ~ (¡1 ~ ¡<..: ¡<..: ¡<..: r-: ¡<..: .- .- .- .- ... I