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204-086
• • 0763- )Q 190 Seth Nolan Hilcorp Alaska, LLC c2 GeoTech 3800 Centerpoint Drive, Suite 100 QM b8(p�, Anchorage, AK 99503 Tele: 907 777-8308 e97111. Ifilrurp flask._I.t,C Fax: 907 777-8510 E-mail: snolan@hilcorp.com DATE 05/19/2016 To: Alaska Oil & Gas Conservation Commission RECEIVED Meredith Guhl Petroleum Geology Assistant 333 W 7th Ave Ste 100 MAY 2 0 2016 Anchorage, AK 99501 AOGCC DATA TRANSMITTAL BCU 12 & 14 Electric log data CD: 1 DIGITAL LOG DATA (; BCU 14 AIN TVD.tifp SCANNED MAY 2 5 2016 BCU 14_41S-V'EC_MD.tif BCU 14_AIS-VEC-2_MD.tif BCU 14_COMP-SONIC_MD.tif BCU 14_PNS_MD.tif • BCU 12 JIS TVD.tif BCU_12_COMP-PHOTO-DEN-COMP-NEUT_TdD.tif BCU_12_SONIC_TVD.tif i BCU 12 VECTAR TVD.tif • BCU-12_CSS-RTP_MD.tif • BCU-12_DN-REPLAYMD,tif BCU-12_REG-IND-REPLAY_MD.tif BCU-12 'ECTAR MD.tif `( FINAL_Data_Marathon_BCU 14_completedpk 1. FINAL_Data_Marathan_BCU 14_plotted.dpk ci T14138_Reeves_md.dpk C i T14138_Ree:ves tvvd.dpk Please include current contact information if different from above. Please acknowledge receip ; . 'qg and returning one copy of this transmittal or FAX to 907 777.8337 Received By: / Date: 5/2-0 e e Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. :;¿ Q Y- - 0 ß h Well History File Identifier Organizing (done) D Two-sided 1/1111111111111111I D Rescan Needed ""11111111111I111 R~AN ¥ Solor Items: ~reYSCale Items: \ ~ D Poor Quality Originals: DIGITAL DATA OVERSIZED (Scannable) D Maps: D Other Items Scannable by a large Scanner D Diskettes, No. D Other, NolType: OVERSIZED (Non-Scannable) D Other: o logs of various kinds: NOTES: o Other:: BY: ~ Date: {{ /3 10 to /5/ mP Project Proofing 1111111111111111111 BY: CMariV /5/ (V\~ Scanning Preparation BY: Production Scanning Stage 1 Page Count from Scanned File: j \ ß (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: V YES BY: C~~ Date: \ t I ~ JDb Stage 1 If NO in stage 1, page(s) discrepancies were found: YES 1111111111111111111 NO /5/ VV\ P NO BY: Maria Date: /5/ 1111111111/11111111 Scanning is complete at this point unless rescanning is required. ReScanned 111111111111111111I BY: Maria Date: /5/ Comments about this file: Quality Checked III ""11111 "1111I 10/6/2005 Well History File Cover Page. doc . RECEIVED STATE OF ALASKA ALA...,A OIL AND GAS CONSERVATION COMMISSION FEB 12 21114 • 1a.Well Status: � ❑ Gas COMPLETION ❑ • • ELLCOMPLEG ❑ Other 111 Abandoned nn TON OR RECOMPLETION REPORT Class: � REPORT AND 2OMC 25.106 40MAc 25.110 Development ❑✓ , Exploratory ❑ GINJ ❑ WNJ ❑ WAG ❑ WDSPL❑ No.of Completions: _1 Nt',.i P ,�/,('Service ❑ Stratigraphic Test ❑ 2.Operator Name: 5.Date Comp.,SSuusp_or ii,p12 j Permit to Drill Number: Hilcorp Alaska,LLC Aband.: 1/15/2014 s'q'° 204-088/313-831 3.Address: 6.Date Spudded: 13.API Number: 3800 Centerpoint Drive,Anchorage,AK 99503 7/2/2004 50-133-20539-00-00 • 4a.Location of Well(Govemmental Section): •7.Date TD Reached: 14.Well Name and Number: Sfr t /164" Surface: 113'FSL, 1388'FEL,Sec.33,T7N,R1OW 7/18/2004 Beaver Creek Unit(BCU)14 • Top of Productive Horizon: 8.KB(ft above MSL): 182' 15.Field/Pool(s): GL(ft above MSL): 141' Total Depth: 9.Plug Back Depth(MD+TVD): Beaver Creek/Beluga Gas 2092'FSL,312'FEL,Sec.33,T7N,R1OW 5,109'MD/4,767'ND 4b. Location of Well(State Base Plane Coordinates,NAD 27): 10.Total Depth(MD+TVD): 18.Property Designation: Surface: x- 314368.188 y- 2430071.363 Zone- 4 .9,361'MD/8,789'TVD • A-028083 TPI: x- y- Zone- 11.SSSV Depth(MD+ND): 17.Land Use Permit: Total Depth: x- 315475.51 y- 2432032.74 Zone- 4 NA NA 18. Directional Survey: Yes ❑ No Q 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) NA (ft MSL) NA 21.Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drilULateral Top Window MC/TVD: N/A 23. CASING,UNER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH ND AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 20" • 133 K-55 0 147' 0 147' Driven NA NA 13-3/8" 68 K-55 0 2,124' 0 2,124' 16" 568 sx NA 9-5/8" 40 L-80 0 7,594' 0 7,023' 12-1/4" 877 sx NA 3-1/2" 9.3 L-80 - 6,320' 9,329' 0 8,757' • 8-1/2" 832 sx NA 24.Open to production or injection? Yes ❑ No ❑✓ 25. TUBING RECORD If Yes,list each interval open(MD+TVD of Top and Bottom;Perforation SIZE DEPTH SET(MD) PACKER SET(MD/TVD) Size and Number): 3-1/2" 6,320'-9,329' NA 26. ACID,FRACTURE,CEMENT SQUEEZE,ETC. 1 Was hydraulic fracturing used during completion? Yes❑ No Q SCANNED MAY3 20q 4., DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED !o czSY' G.:Y..3 t c- F- `ic.)' c4,-1— r,•--r 5161 ' 7 %"c/BP 1< '.j.Je•le/ 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): NA Not flowing Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: NA Test Period Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): Press. 24-Hour Rate .•► 28. CORE DATA Conventional Core(s)Acquired? Yes❑ No❑., Sidewall Cores Acquired? Yes ❑ No❑✓ If Yes to either question,list formations and intervals cored(MD+TVD of top and bottom of each),and summarize lithology and presence of oil,gas or water (submit separate sheets with this form,if needed).Submit detailed descriptions,core chips,photographs and laboratory analytical results per 20 AAC 25.071. NA RBE M MAR 21 71_• \ Form 10-407 Revised 10/2012 CONTINUED ON REVERSESubmit original only ,Oily `f�3 ii . r ,. ✓G 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? ❑ Yes 0 No If yes,list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form,if needed,and submit detailed test information per 20 AAC 25.071. Formation at total depth: 31. List of Attachments: 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Stan Porhola Email: sporhola(C�hilcorp.com Printed Name: Stan Porhola Title: Operations Engineer Signature: Phone: 907-777-8412 Date: 1/(71/y INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 b: Classification of Service wells: Gas Injection,Water Injection,Water-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection,Observation,or Other.Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI(Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. 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: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: 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 27: Method of Operation: Flowing,Gas Lift, Rod Pump,Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations,and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation,and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 10/2012 Hi corp Alaska, LLC Well Operations Summary Well Name API Number Well Permit Number Start Date End Date _ BCU 14 50-133-20539-00 204-086 1/10/14 1/15/14 Daily Operations: 01/10/2014- Friday MIRU EL. RIH w/3-1/2"TBG Jet Cutter/CCL and tagged at 6,331' ELM. PU above collar at 6,320' and made cut. The tool string got blown up hole 70' after making the cut. PU to 5,000psi and no movement with tool string. Tried pumping down tbg with rig pump to work tool string free-no luck. Waited on Expro to bring cutter bar. Dropped cutter bar and cut EL. POOH w/6,000' of line. Left tool string and cutter bar in well. RDMO EL. 01/11/2014-Saturday MIRU WOR and winterization, NU 13" BOP's . 01/12/2014-Sunday Finished RU, containment and winterization. Prepped for BOP test. Tested BOPE, Annular 250-1,500psi,Valves 250-3,000psi, Rams 250-3,000psi, Koomey Unit. (Witness waived by Jim Regg, AOGCC &Justin Miller, BLM) No failures recorded. MU the Spear Assembly to pull the tbg hanger. Spear tbg hgr and backed out lockdown pins. PU to 56k. Released hanger and set slips. L/D Spear assembly and tbg hgr. Tbg centralizers would not go thru the tongs. Called Weatherford and offshore for the open face tongs. 01/13/2014- Monday Waited on Weatherford open face tongs, TOOH w/4 stands of 3-1/2" 8rd and 3 each 1/4" control lines. RU the Weatherford open face tongs, TOOH w/4 stands. Started pulling wet pipe. Started pumping FSW down the csg and broke circulation. Reversed circulated for 30 mins to the gas buster, with thick mud in the tank we pumped 2 loads of the vacuum truck. With returns clean SD pump. Continue SOOH with 3-1/2", cutting the 3 control lines and removing centralizers. We started pulling a 3/8" steel cable wrappped on the outside of 3-1/2" tubing. Continued standing back with 3-1/2" tubing, cutting control lines and 3/8" cable. Total of 166 jts stood back. 01/14/2015 -Tuesday Continue racking back tbg, cutting the 1/4" control lines and 3/8" cable at every stand. Recovered the wireline tool that was lost in the tbg. PU flat bottom mill, sub, csg scraper and x-over. Tallied BHA and TIH. Continued TIH and tagged hard at 5,900'. PU 1 jt and circulated bottoms up. With returns clean shut down the pump. TOOH L/D the 3-1/2" tbg. 01/15/2014-Wednesday LID the 3-1/2" tbg and BHA. MIRU EL and Tested, MU the 9-5/8" CIBP and Setting Tool. RIH to 5,400'. Logged up to 4,900'. Sent correlation pass to Anchorage. Waited on orders then set the top of the CIBP @ 5,109', 5' above the csg collar at 5,114'. RDMO EL. Tested the CIBP to 2,500psi for 30 mins (charted). Test-ok. ND BOP/ NU Dry Hole Cap. RDMO WOR and associated equipment. . _ BC-14 • H ACTUAL Pad 1A SCHEMATIC Hilcorp Alaska.LLC113' FSL, 1,388' FEL "taefriitt#-'` 3' SeC. 33, T7N, R10W, S.M. Conductor API#: 50-133-20539-00-00 zo" TTooap Bottom Property Des: A-028083 , MD 0' 147' KB Elevation: 162' (21'AGL) ,,, ND 0' 147' Lat: N60° 38' 51.1588' Long: W151° 2' 45.491" Surface Casing Spud Date: 07/02/04 13-3/8" K-55 68 ppf BTC Rio Released: • • Top Bottom MD 0' 2,124' ND 0' 2,124' 16"hole Cmt w/568 sks( bbl)of Tree cxn =6-1/2"Otisp' 12.0 ppg,Class G cmt TOC(8/3/04 CBL)-6,690' ,1 Intermediate Casing •i^ 9-5/8" L-80 40 ppf BTC Bridge Plug @ 5,109'ELM I Top Bottom f MD 0' 7,594' Jet Cut Tubing @ 6,320'ELM---1 �{ ND 0' 7 12-1/4"hole Cmt w/377 sks(bbls)of u 12.5 ppg Tail&510 sks( bbls)of 13.5 Tubing Plug @ 6,528'SLM ,r y i l ppg Lead Class G cmt sks Capped w/40'Cement 4 (A - 41.1 Production Tubing 6'+ 3-1/2" L-80 9.3 ppf Mod EUE Tagged fill @ 6,531'KB(8/30/13) _________ -;-------4'; •/ Top Bottom 8rd w/2.50"Drive Down Bailer _ ti; l h MD 6,320' 9,329' 41 Excape System Details I {• ND 5,796' 8,756' ti; ; 8-1/2"hole Cmt w/832 sks( bbls) ' {• of 15.8 ppg,Class G cmt -BHP monitoring green line volume tank located from ' ; 7,610'-7,653'RKB ' 4. -ii'� ifi ; iy� Excape System Details System {• �S -11 Excape modules placed -Excape10 System Detailsal flappers -Green control line fires module 1 -Mod 1 -no flapper 1,ti control line fires modules 2-6 Ceramic flapper valves below1:i.. , - .control line fires modules 7-11 - �;{. -Ceramic flapper valves below each each module as follows: A. I module(excluding Module 1) Flappers MD(RKB): ,, -1J,{. Module 11 -7,721' 't• A. Beluga Perfs MD(OH Loq): Module 10-7,782' �,{. Module 11 -7,702'-7,712' Module 9 -8,044 1• Module 10-7,763'-7,773' Module 8 -8,167' �l• Module 9-8,025'-8,035' Module 7 8,321' • mmtir Module 8-8,148'-8,158' r Module 6 -8,443' ''' s`' 411 Module 5 -8,526' {* Module 7-8,302'-8,312' Module 4 -8,575' Module 6-8,424'-8,434' Module 3 -8,746' Module 5-8,507'-8,517' Module 2 -8,982' I Module 4-8,556' 8,566' _ 7 Cement 8,636' ELMD �� Wireline Set Plug 8,675' Plug @ 8,675'MD Module 3 8,727' 8,737' ,, ,-.-fdED Capped w/39'of cement .;' Module 2 8,963' 8,973'PLUGGED Module 1 9,022' 9,032'PLUGGED nI �,; ,rr TD PBTD 9,361'MD 8,636'MD 8,786'ND 8,064'TVD Well Name&Number:_ Beaver Creek Unit#14 Lease: A-028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: 2°/181 ft @ 985' Angle/Perfs: 14.5°-.1° Maximum Deviation: 36.5°@ 3,716' Date Completed: 9/16/2004 _ Ground Level(above MSL): 141' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date: 1/15/2014 Schematic Revision Date: 1/28/2014 w4 I j/j-s9 THE STATE Alaska Oil and Gas 1, ALASKA Conservation Commission wh GOVERNOR SEAN PARNELL 333 West Seventh Avenue 0 � P Anchorage, Alaska 99501-3572 ALAS Main: 907.279.1433 Fax: 907.276.7542 Stan Porhola SCANNED MAY 1 6 N Operations Engineer Hilcorp Alaska. LLC �� Q 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Re: Beaver Creek Field, Beluga Gas Pool, Beaver Creek Unit(BCU) #14 Sundry Number: 313-631 Dear Mr. Porhola: 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, i3-e-t4� Cathy P. oerster Chair DATED this day of December, 2013. Encl. ,� " EC W E IP STATE OF ALASKA ` `AA D E C 0 5 201 ALASKA OIL AND GAS CONSERVATION COMMISSION 07.$ 121 1 9 113 APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1.Type of Request: Abandon❑ Plug for Redril ❑✓ . Perforate New Pod ❑ Repair Well E Change Approved Program❑ Suspend❑ Plug Perforations ❑ Perforate❑ Pull Tubing❑✓ • Time Extension❑ Operations Shutdown❑ Re-enter Susp.Wel ❑ Stimulate❑ After Casing❑ Other:❑ 2.Operator Name: Hilcorp Alaska,LLC 4.Current Well Class: 5.Permit to Drill Number Exploratory ❑ Development ❑✓ 204-086 • 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic El Service 1116.API Number: Anchorage,Alaska 99503 50-133-20539-00 • 7.If perforating: 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? CO 521 - Beaver Creek Unit(BCU)#14 • Will planned perforations require a spacing exception? Yes ❑ No ❑ • 9.Property Designation(Lease Number): 10.Field/Pool(s): FEDA028083 • Beaver Creek/Beluga Gas Pool . 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): 9,361' • 8,786' • 8,636' 8,064' 8,636' WA Casing Length Size MD ND Burst Collapse Structural Conductor 147' 20" 147' 147' Surface 2,124' 13-3/8" 2,124' 2,124' 3,450 psi 1,950 psi Intermediate 7,594' 9-5/8" 7,594' 7,023' 5,750 psi 3,090 psi Production 9,329' 3-1/2" 9,329' 8,756' 10,160 psi 10,540 psi Liner 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 9,329' Packers and SSSV Type: N/A;N/A Packers and SSSV MD(t)and ND(ft): N/A;N/A 12.Attachments: Description Summary of Proposal 013.Well Class after proposed work: • Detailed Operations Program n BOP Sketch n Exploratory n Stratigraphicn Development 171 Service ri 14.Estimated Date for 15.Well Status after proposed work: 12/13/13 '�j Commencing Operations: Oil ❑ Gas pL,•'3 WDSPL ElSuspended [ P�.3 16.Verbal Approval: Date: WINJ El GINJ 1-1•' WAG ElAbandoned ❑"„. Commission Representative: GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Stan Porhda Phone: 907-777-8412 Email sDorholataihilcorD.corn Printed Name Stan Porhola Title Operations Engineer Signature L ,�h ` Phone 907-777-8412 Date 1ndry©S /3 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness S Number: 3Y — La%\ Plug Integrity ❑ BOP Test e Mechanical Integrity Test ❑ Location Clearance ❑ Other X 5Cre) i S L 5O P / c S f� A ktie--r sZ c. l t w 10 4-e�y...,,�- 41,✓a14 - A' Zs ll Z�c, Spacing Exception Required? Yes ❑ No LTJ Subsequent Form Required: l0-go 7- a BDMS MAY V 9 2014 a447 APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: (2 --2 - /3 �a�G! JE1 àLIOflthS 1 i5 Form 10-403(Revised 10/2012) Approt i1 from the date f approval. Attachments in Duplicate (,, ,tom, Well os Well: BCU-14Prgnois Hilcorp Alaska,LL Date:12/05/2013 Well Name: BCU-14 API Number: 50-133-20539-00 Current Status: Shut-in Gas Well Leg: N/A Estimated Start Date: December 16,2013 Rig: Moncla 405 Reg.Approval Req'd? 403 Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 204-086 First Call Engineer: Stan Porhola (907)777-8412 (0) (907)331-8228(M) Second Call Engineer: Chad Helgeson (907)777-8405 (0) (907)229-4824(M) AFE Number: Current Bottom Hole Pressure: —3,450 psi @ 8,150' ND (Static survey November 2004 mid perf 8,721' MD) Maximum Expected BHP: —3,450 psi @ 8,150' ND (Static survey November 2004 mid perf 8,721' MD) Max.Allowable Surface Pressure: —2,635 psi (Based on actual reservoir conditions and gas gradient to surface (0.10psi/ft)) Brief Well Summary Beaver Creek#14 was drilled as a grassroots EXCAPE well in 2004 to target the lower Beluga gas sands. This well was fracture stimulated using the EXCAPE completion in 11 modules, but due to formation damage caused during the fracture stimulation work,the well has never r tce . bottom 2 modules were isolated with a bridge plug and cement to isolate wate7. e ore currently has sand fill above all modules. The purpose of this work/sundry is to abandon the current perforated intervals and prepare the wellbore for re-drilling operations. A drilling permit application will be submitted separately for the sidetrack. Notes Regarding Wellbore Condition • Last tag at 6,531' RKB on 8/30/13 w/a 2.50" Drive Down Bailer. 4, Slickline Procedure: 1. MIRU Slickline, PT lubricator to 3,000 psi Hi 250 Low. 2. RU 2.65" gauge ring, RIH and tag fill/obstruction (last tag at 6,531' on 8/30/13 w/2.50" bailer). 3. RU tubing stop/plug for 3-1/2"tubing, RIH and set at+/-6,500'. Bleed off tubing pressure. 4. Dump bail 35'of cement on tubing plug(13 gallons of cement). ✓ o IA. 5. Wait on cement for 12 hours. 6. Tag top of cement. 7. RD Slickline. WO Rig Procedure: 8. MIRU Moncla#405 WO Rig. 9. NU BOPE.Test to 250 psi Low/3,000 psi High,annular to 250 psi Low/1,500 psi High (hold each valve and test for 10-min). Record accumulator pre-charge pressures and chart tests. a. Notify AOGCC 24 hrs in advance to witness. b. Notify BLM 48 hrs in advance of BOP test. c. BPV in hanger profile. 10. Bleed any pressure off casing. Pull BPV. Well Prognosis Well: BCU-14 Hilcora Alaska,Lb Date:12/05/2013 11. MU landing joint and pull 15k tension over string weight on tubing hanger. 12. MIRU E-line, PT lubricator to 3,000 psi Hi 250 Low. 13. RU 3.5"Tubing Jet Cutter. 14. RIH and jet cut tubing at 6,400' MD. a. Have backup cutters on location if tubing does not part. b. Plan 2nd jet cut if control lines do not part. 15. SOOH and rack back 3-1/2"tubing. 16. MU flat-bottom BHA w/casing scraper and RIH on 3-1/2"tubing out of derrick. 17. Tag cut tubing at+/-6,400' MD. 18. Circulate well clean w/Produced Lease Water. • 19. POOH. LD 3-1/2"tubing, casing scraper and flat-bottom BHA. 20. MIRU E-line, PT lubricator to 3,000 psi Hi 250 Low., 21. RU 9-5/8" CIBP and GR/CCL tools. 22. RIH and set CIBP at+/-5,100' MD in the 9-5/8"40#casing(set 3-5 ft above a casing collar). 23. RD E-line. 24. Test casingto 2,000 psi for 30 min and chart. 25. Set BPV. ND BOPE. NU dry hole tree. Pull BPV. 26. RD Moncla#405 WO Rig. 27. Turn well over to production in preparation of moving in the Saxon#169 Drilling Rig. 28. Replace IA x OA pressure gauge if removed (7"x 13-3/8"). Attachments: 1. Actual Schematic 2. Proposed Schematic 3. BOPE Schematic • BC-14 ACTUAL Pad 1A SCHEMATIC Hilcare Alaska,LLC 113' FSL, 1,388' FEL Permit#: 204-086 Sec. 33, T7N, R10W, S.M. Conductor API#: 50-133-20539-00-00 ! 20" K-55olot ppf Property Des: A-028083 , MD Top 147' ttom KB Elevation: 162' (21'AGL) - ND 0' 147' Lat: N60° 38' 51.1588' Long: W151° 2' 45.491" Surface Casing Spud Date: 07/02/04 , 13-3/8" K-55 68 ppf BTC Riq Released: . Top Bottom MD 0' 2,124' ND 0' 2,124' 16"hole Cmt w/568 sks( bbl)of 12.0 ppg,Class G cmt Tree cxn =6-1/2"Otis Intermediate Casing 9-5/8" L-80 40 ppf BTC TOC(8/3/04 CBL)-6,690' Top Bottom MD 0' 7,594' • p TVD 0' 7,023' 12-1/4"hole Cmt w/377 sks(bbls)of Tagged fill @ 6,531'KB(8/30/13) • cuk +b__\. Fi 12.5 ppg Tail&510 sks( bbls)of 13.5 w/2.50"Drive Down Bailer ppg Lead Class G cmt • Production Tubing 3-1/2" L-80 9.3 ppf Mod EUE ,ti. c ‹i'� 1-rte�C' Top Bottom 8rd �G(„Zp t MD 0' 9,329' ,+• ND 0' 8,756',� ti. 8-1/2"hole Cmt w/832 sks( bbls) Excape System Details ,;, - of 15.8 ppg,Class G cmt -BHP monitoring green line volume _ ;: 4 :fi tank located from '•r ,/� 7,610'-7,653'RKB ; t { M, Excape System Details Excape System Details - �, iil -11 Excape modules placed 10 Conventional flappers i•r -Green control line fires module 1 --Mod 1 -no flapper control line fires modules 2-6 -Ceramic flapper valves below I+ - control line fires modules 7-11 �; Ceramic flapper valves below each E each module as follows. ... module(excluding Module 1) Flappers MD(RKB); -11fZ Module 11 -7,721' dry + ' 'Ili• , Beluga Perls MD(OH Lou): Module 10-7,782' , Module 11 -7,702'-7,712' Module 9 -8,044 •.�{{ 4 Module 10-7,763' 7,773' Module 8 -8,167' ' � Module 9-8,025'-8,035' Module 7 -8,321' tir Module 6 -8,443' gt '4t Module 8-8,148'-8,158' Module 5 8,526' S� Module 7-8,302'-8,312' Module 4 -8,575' D. + Module 6-8,424'-8,434' • i Module 3 -8,746' Modules-8,507'-8,517' • Module 2 -8,982' 1 Module 4-8,556' 8,566' Cement A 8,636' ELMD �� Wireline Set Plug 8,675' Plug @ 8,675'MD Module 3 8,727' 8,737'PLUGGED Capped w/39'of cement Module 2 8,963' 8,973'PLUGGED Module 1 9,022' 9,032'PLUGGED ' ,ti , r TD PBTD 9,361'MD 8,636'MD 8,786'TVD 8,064'TVD Well Name&Number: Beaver Creek Unit#14 _ Lease:, A-028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: 2°/181 ft @ 985' I Angle/Perfs: 14.5°-.1° Maximum Deviation: 36.5°@ 3,716' Date Completed: 9/16/2004 Ground Level(above MSL):_ 141' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date: 8/30/2013 Schematic Revision Date: 10/10/2013 • II BC-14 PROPOSED Pad 1A SCHEMATIC FHleorp.Alaska.Lt.(, 113' FSL, 1,388' FEL Sec. 33, T7N, R10W, S.M. Conductor It#: 204-086 20" K-55 133 ppf #: 50-133-20539-00-00 Top Bottom pertv Des: A-028083 e MD 0' 147' Elevation: 162' (21'AGL) ! . TVD o' 479';.:1*- : N60° 38' 51.1588' : W151° 2' 45.491" Surface Casing ud Date: 07/02/04 13-3/8" K-55 68 ppf BTC -q Released:i, a Top Bottom 2,124' MD 0' TVD 0' 2,124' 16"hole Cmt w/568 sks( bbl)of !Tree cxn =6-1/2"Otis 12.0 ppg,Class G cmt TOC(8/3/04 CBL)-6,690' ' Intermediate Casing 1h 9-5/8" L-80 40 ppf BTC Bridge Plug @ 5,100' Top Bottom MD 0' 7,594' Jet Cut Tubing @ 6,400'_ , TVD 0' 7,023' 12-1/4"hole Cmt w/377 sks(bbls)of TubingPlug6,500' u 12.5 ppg Tail&510 sks( bbls)of 13.5 @ , I' ' ppg Lead Class G cmt Capped w/35'Cement F ~, 4'd Production Tubing Tagged fill 6,531'KB 8/30/13 3-1/2" L-80 9.3 ppf Mod EUE 99 @ ) -,,ti• - ' , Top Bottom 8rd w/2.50"Drive Down Bailer { ;,° !� MD 0' 9,329' • TVD 0' 8,756' 1111 8-1/2"hole Cmt w/832 sks( bbls) Excape Svs6em Details ,;II. i• of 15.8 ppg,Class G cmt -BHP monitoring green line volume ;:' �'' tank located from t' , 7,610'-7,653'RKB : -1i w Excape System Details Excape System Details -11 Excape modules placed 10 flappers ` -Green control line fires module 1 --10 Conventional 1 -no flapper 1,{ - control line fires modules 2-6 -Mod I - valves below ti• - control line fires modules 7-11 each Ceramic flappere afollows: s: 1i';. -Ceramic flapper valves below each Flappers MD(RKB): ;: module(excluding Module 1) Module 11 -7,721' 0;: - 10-7,782' �* Beluga Pens MD(OH Loci):D�• Module 9 -8,044 Module 11 -7,702' 7,712' Module 8 -8,167' ''; �• Module 10 7,763' 7,773' D;r ti• Module 9-8,025'-8,035' Module 6 -8,443' D IL Module 7 -8,321' .: Df Module 8-8,148'-8,158' Module 5 -8,526' '0 Module 7-8,302'-8,312' Module 4 -8,575' D, Module 6 8,424'-8,434' Module 3 8,746' Module 5-8,507'-8,517' Module 2 -8,982' Module 4-8,556'-8,566' Cement @ 8,636' ELMD V Wireline Set Plus' 8.675' Plug @ 8,675'MD Module 3 8,727' 8,737'PLUGGED Capped w/39'of cement vModule 2 8,963' 8,973'PLUGGED Module 1 9,022' 9,032'PLUGGED lo 1 TD PBTD 9,361'MD 8,636'MD 8,786'TVD 8,064'TVD Well Name&Number: Beaver Creek Unit#14 Lease: A-028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: - 2°/181 ft @ 985' Angle/Perfs:l 14.5°-)1° Maximum Deviation: 36.5°@ 3,716' Date Completed:_ 9/16/2004 Ground Level(above MSL): 141' RKB(above GL): 21' • Revised By: Stan Porhola Downhole Revision Date: Proposed Schematic Revision Date: 12/5/2013 . 13 Beaver Creek BC # 14 BOP Moneta #405 sieorp 1,iu.ka.:.:.l. 12/05/2013 Beaver Creek BC#14 20X133/8X95/8X3%: t 1 O O 11n IT lit fril fictirrtim / 174' Shaffer 13 5/8 5M f Mat rtTh fill 1f t AP 11:14k.. Shaffer SL = 13585M IP * I �a�� 2.83' 10.01' PLA;41 3:41_17 0 ■_ / 2 1/16 5M Kill Valves 3 1/8 5M Choke Valves Manual and HCR +Manual and HCR i i �• :` ;, . 13 5/8 5M w/ ++�r -� 2.00' �, : : �1! 3 1/8 5M EFO Ia M. : ; Fi - Shaffer SL _ ._,__,I-._;.. 13 5/8 SM 'i 1.44' • •0 - ■!;.we . • affil i! = Grade Level 2Multibowl,Vetco MB-196, ii ,r `_i �� 13 5/8 3M stdd bottom X �� �� �� �� 13 5/8 5M FE top,w/ �; ------7--_� E.Omni.1M_ `_Kik O .� lam •2-2 1/16 5M SSO : .� 1`t _ l 1 Starting head, -11.1- .Y Vetco MB-196, f I . _,_-- 13 5/8 3M X 13 3/8 VG-Loc 00-J l-•j j bottom,w/2-2"LPOIIE I I Ape a ►L MI 1111 20" 13 3/8" 9.625" 3.5" w ~ ~,.~ ~.~. ~- ~,~. __ MICROFILMED 03/01/2008 DO NOT PLACE. ANY NEW MATERIAL UNDER THIS PAGE F:lLaserFichelCbrPgs InsertslMicrofilm Marker.dac '2 J.- D tt- ...( ß ~ Co DATA SUBMITTAL COMPLIANCE REPORT 9/28/2006 Permit to Drill 2040860 Well Name/No. BEAVER CK UNIT 14 Operator MARATHON OIL CO 5/1~ R J~I^ ~ y API ~o. 50-133-2053~~~-OO MD 9361 / TVD 8789 .~ Completion Date 9/22/2004 / Completion Status 1-GAS Current Status 1-GAS UIC N REQUIRED INFORMATION Mud Log No Samples No Directional surve~ DATA INFORMATION Types Electric or Other Logs Run: SP/GR-IEL-Density/Neutron-Sonic-Single Arm Caliper-MFTs Well Log Information: (data taken from Logs Portion of Master Well Data Maint Logl Data Digital ~d/Frmt . I ED C ,.. I Electr Dataset Number Name 14139 InductionlResistivity Log Log Scale Media Run No Interval Start Stop 6511 9290 . -~----- OH/ CH Received Comments Open 9125/2006 GR, CALIPER, -l INDUCTION RESISTIVITY, POROSITY, DENSITY, SONIC-LAS Plus Graphics I /11 GR, DT, PORO-LAS Plus Graphics 1/1 MUDLOG i (1 '-9400') Plus Graphics 11/ J Daily Drilling Reports-PDF Well Cores/Samples Information: Name Interval Start Stop Sent Received Sample Set Number Comments ADDITIONAL INFORMATION Well Cored? ~ Chips Received? ~ Analysis ~ Received? Daily History Received? ~/N rŒ/N . Formation Tops ~- --~ ~---~-~---~-~ Comments: Compliance Reviewed By: ¡L Date: } f ð1t , ( A()~~ ---.-- . Marathon Oil Company . Alaska AssefTeam United States Production Organization P.O. Box 3128 Houston, TX 77253 Telephone 651-459-3040 Fax 713-499-8504 September 21, 2006 R€C€/I/€D Sf? 2 5 . Alaska ai/ &. ¿OU6 . Gas Cons. C . CERTIFIED MAIL 4nChorage Ot'nnllSSion Alaska Oil & Gas Conservation Commission Attn: Howard Okland 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 RE: Marathon Oil Company Beaver Creek Unit No. 14 (BCU 14) Well Data CONFIDENTIAL The attached CD contains CONFIDENTIAL digital data for BCU l4. The CD includes: Daily Reports Precision Wireline Data EPOCH Mudlog Data Directional Survey CD Directory: '!: BCl4_0aily ß,eports.pdf '!: BCU14_DRILDYNAMICS_MD.pdf '!:BCU14_MJDLOGYÐ.pdf '!:BCU14_MUDLOGJVO.pdf ~BCU14_AOGCC_DIR_SLR.dat l.::)BCU #14.las l.::)BCU14_FIN.A.L_D,A,T,A,2.1as LJ BCU 14J'IN.A.L_REPEAT.las l.::)GOOD_M.A.IN_PASS.1as m'BOND REPl,A,Y_BCU14_complete.dpk m'BOI'Ð REPLAY _BCU14-Pk>tted,¢k m'FlNAL."'pataßarathon_BCU 14_comp/ete.dpk m'RNAL._Dataj4arathon_BCU 14JJ1otted.dpk \J,\~~ ~ Please sign and return to me by faxing to 713-499-8504 confirming your receipt of this data. ;z you, K~~ Engineering Technician Enclosure Received bYU oÅ; Date: ,1c)Ll- O~c. F;/~ . ~cf--OY~ . Alaska Region Domestic Production Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/283·1337 Fax 907/283-6175 June 22, 2005 Winton Aubert State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 Reference: Sundry Notice Field: Beaver Creek Field Well: Beaver Creek Unit BC-14 Dear Mr. Aubert, Enclosed please find the Sundry Notice (10-404), and associated attachments. Beaver Creek 14 was plugged back above the Lower Beluga 28 interval to stop sand and coal production. The well has been unable to sustain flow. We are considering either a velocity string or possible options for production or injection into the Sterling. Should you require further information, I can be reached at 907-398-9954 or bye-mail at MMullin@MarathonOil.com. ~~~ Advanced Production Engineer Telephone: 907-398-9954 Email: MMullin@MarathonOi/.com OR\G\~~AL a STATE OF ALASKA ALAS~IL AND GAS CONSERVATION COMM.N REPORT OF SUNDRY WELL OPERATIONS 1. Operation$ Abandon Performed: Alter Casing D Change Approved Program D 2. Operator Name: Repair Well Pull TubingD Operat. Shutdown 0 Plug Perforations J Perforate New Pool D Perforate 0 4. Current Well Class: Development 0 StratigraphicD Stimulate Marathon Oil Company PO Box 196168 Anchorage, AK 99519-6168 7. KB Elevation (ft): 21' AGL 162' RKB MSL 8. Property Designation: A-028083 11. Present Well Condition Summary: Exploratory 0 ServiceD 3. Address: 9. Well Name and Number: BG-14 10. Fíeld/Pool(s): Beaver Creek J Beluga Pool Total Depth measured 9361' feet true vertical 8182' feet Effective Depth measured 8636' feet true vertical 8712' feet Casing Length Size MD Structural Conductor 147' 20" 147' Surface 2124' 13-318" 2124' Intermediate 7594' 9-5/8" 7594' Production 9329' 3-1/2" 9329' Uner Plugs (measured) 8615' Junk (measured) TVD Burst Collapse 147' 2124' 7016' 8750' Perforation depth: Measured depth: 1702' - 8566' True Vertical depth: Tubing: (size, grade, and measured depth) 3-1í2" ESCAPE L-80 EUE 9329' Packers and SSSV (type and measured depth) NíA NlA 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: RBDMS BFl ,JUt 072005 Prior to well operation: SUbsequent to operation: 14. Attachments: Copies of Logs and Surveys Run None Daily Report of Well Operations Representative Daily Average Production or Injection Data Gas-Mcf Water-Bbl Casing Pressure 000 000 15. Well Class after proposed work: Exploratory D Development 0 16. Well Status after proposed work: Oil 0 Gas 0 WAG D 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Oil-Bbl o o Tubing Pressure 500 2000 13. Service 0 Attached GINJ 0 WINJ D WDSPL D Sundry Number or NlA if C.O. Exempt: Contact Mickey Mullin Printed Name Michael A. Mullin Signature Title Production Engineer Date 22-Jun-D5 . . Daily Summary for V\¡ BEAVER CREEK 14 Report Date Report Summary Number -~-----~_._.._----------------------------------------.------------------.--------------------------------------.--------- .. -----------------------------------------------------.-------------------------------------------------------------------- 20042005 Post-Rig Completion -----------------------------------.------.----.------.------------------------------------------------------------------- 03-Aug-04 04-Sep-04 15-Sep-04 16-Sep-04 1 RU wire line to make CBL sonic log 2 MIRU e-line on unit to make static temperature survey 4 Complete equipment checks. Hold PJSM. Perforate Module 1 and perform injection test. Zone too tight to treat. Perforate Module 2 and perform injection test. Secure well and SDFN. 5 Attempt to frac module 2 w/o success. Frature stimulate modules 3, 4, 5, 6, and 7. Attempted to obtain pressure falloff data in module 3 w/o success. Obtained pressure falloff data on module 4. Secure well and equipment and SDFN. 17 -Sep-04 6 Pum pe fracs in modules 8,9,10, and 11 (injection falloff test in 11). RD frac trucks / RU coil tubing. RIH w/ CT and broke 9 of 10 flappers. Lifted well with nitrogen. Well unloaded fluid but no formation gas. Ran out of nitrogen. POOH w/ CT. 18-Sep-04 7 Monitored well for production. RIH with CT and continued lifting well with N2. Well flowing broken frac fluid and trace amounts of frac/flex sand with no indications of any formation gas. Total frac load recovery is 20.4% or 608 of 2978 bbls. 19-5ep-04 8 Lifted well with N2. Well unloading broken frac fluid with trtace amounts of frac and flex sand, with no formation gas, Well unloading at rates of 440 to 725 BFPD. Ran out of N2. POOH with CT. Monitored well for production. 20-Sep-04 9 Continued lifting well with N2. Well unloading trace amounts of frac and flex sand with no indications of any formation gas. POOH with CT after running out of N2. Monitored well overnight for flow/ pressure build up. 21-Sep-04 10 RIH wI CT and lifted well w/ N2. Well unloaded total of 107 Bbls with decreasing rate. Well unloading gray formation fines and water wI no formation gas. POOH wI CT and injected 180,000 scf of N2 into well. 70,000 into formation. SI well and monitor. 22-Sep-04 11 Injected 8000 scf N2. Flowed N2 charge back. Well dead. RIH with CT and tagged Module 11 flapper at 7700'. Lifted well w/ N2. Unable to work CT past flapper at 7700'. POOH and RD CT. Monitored well. 02-0ct-04 12 Rig up Expro to run GRlCCL. Unable to get past 5648' ELM. RD. 04-0ct-04 13 RU Pollard slickline. Sail sand from 5628' to 5641'. RDMO. 10-Nov-04 14 Moved in Crane, CT, pump, tanks and iron. Start RU. 11-Nov-04 15 RU equipment. PT CT 200/5000. Fill Ct with 50/50 methanol water. 12-Nov-04 13-Nov-04 19-Nov-04 20-Nov-04 21-Nov-04 22-Nov-04 21 28-Nov-04 22 30-Nov-04 23 01-Dec-04 24 08-Mar-05 25 09-Mar-05 26 10-Mar-05 27 11-Mar-05 16-Mar-05 17-Mar-05 18-Mar-05 . . 16 Cleaned fill from 5640' to 8289'. Found 350' coal bridge from 5650' - 6000'. Unable to make progress past 8289'. 17 Cleaned fill from 8289" to 8738'. Unable to make progress past 8738' and after short trip unable to get back below 8701'. Rig back CT for wireline work. Will run GRlCCI monday and see if TD is low enough for plug. 18 Ran GRlCCL. Tagged at 8729',2' into lB-28 perfs at module 3. Rah 2.75" LIB. Unable to pass top module #11. Impression looks like flapper shards. Ran 2.70" sawge. worked down to Module 5 at about 8525'. Worked to pass through module 10 while POH. 19 Ran drift runs from 2" to 2.8". Can not get down larger than 2.25" and small tools stop in module 3 with no sample recovery. Indications of pipe problem in lB-28 perfs. 20 Made 2 bailer runs with 20/40 sand. No Change in depth. Built and ran a sand retainer to 8724'. Run 3rd dump bailer of sand. Tag at 8726' before sand and 8725' after sand (fill around 5' long sand retainer. Made 2 bailer runs with 20/40 sand. No Change in depth. Ran temp log to identify crossflow. Good data recovery. Ran and set 2-1/8" inflatable bridge plug at 8675" ElMD CCl (above lB-28, mod 3). Good set. Tag IBP at 8660' WlMD. Dump 1 13-1/3" X 2.25" bailer of sand on IBP. Tag sand at 8658' WlMD. Dump 6 bailer loads cement (36'). Rig down. Tagged cement plug at 8621 KB WlMD. Partially rigged down. Evacuate due to fire. Rigged up BJ and flowback iron. Unloaded 63 bbls water from 7500'. Allow well to fill in through the night holding no surface pressure. Unloaded 40 bbls water from 8500', Allow well to fill in through the night holding no surface pressure. Total returns since frac is 1281 BBls of 2978 load fluid. 28 Unloaded 46 bbls water from 8500' for a total of 176 Bbls on lift. Total returns since frac is 1356 BBls of 2978 load fluid. Well built 15 psi in 15 min, (10 psi in 15 minutes on Thursday). 29 Swab well 6 trips. initial fluid level was 2440'. Final fluid level about 3500'. Made 6 runs and recovered 14 bbls. Total returns since frac is 1370 BBls of 2978 load fluid. 30 Swab well 6 trips. initial fluid level was 2540'. Final fluid level about 3550'. Made 6 runs and recovered 15 bbls. Total returns since frac is 1385 BBls of 2978 load fluid. 31 Initial fluid level was 2500'. Final fluid level about 3100'. Recovered 12 bbls. Total returns since frac is 1397 BBls of 2978 load fluid. Run 2.72 swab cups to 7500' to confirm that all collars will pass undersize cups. Swabbed with 2.85" cups. 19-Mar-05 32 20-Mar-05 33 21-Mar-05 34 22-Mar-05 35 23-Mar-05 24-Mar-05 25-Mar-05 31-Mar-05 01-Apr-05 02-Apr-05 03-Apr-05 04-Apr-05 . . Rigged up 1/4" swabbing unit. Made 3 runs for a total of 9 bbls returns. Shut down early due to a smoking bearing on the unit gearbox. Made 5 runs for a total of 20 bbls returns. Shut down 4 times for mechanical failures. Total down time = 6.5 hours Made 6 runs for a total of 36.5 bbls returns. Broke counter and SD for repairs Made 7 runs for a total of 45 bbls returns. Well is helping lift. Runs are more returns with less pulling weight and after the final run the well blew gas for 5 minutes. 36 Well built at 86 psi/hr through the night. Made 5 runs for a total of 24.5 bbls returns. After the final run the well blew gas for 5 minutes. Well is giving less fluid and more gas. 37 Well built at 112 psi/hr through the night. Made 3 runs for a total of 22.2 bbls returns. After the final run the well blew gas for 8 minutes. Well is giving less fluid and more gas. Total recovered fluid is 1554 bbls of 2978 bbls. 38 Well built at 137 psi/hr through the night. Made 3 runs for a total of 16.5 bbls returns. After the final run the well blew gas for 10 minutes. Well is giving less fluid and more gas. Total recovered fluid is 1570 bbls of 2978 bbls. 39 Well made 7 bbls during blowdown on monday. Made 5 runs for a total of 49 bbls returns. After the final run the well blew gas for 10 minutes. Well is giving less fluid and more gas. Total recovered fluid is 1626 bbls of 2978 bbls. 40 Made 3 runs for a total of 22 bbls returns. Total recovered fluid is 1648 bbls of 2978 bbls. 41 Made 4 runs for a total of 27 bbls returns. Total recovered fluid is 1675 bbls of 2978 bbls. Pressure increase during the night was 175 psi/hour average 42 Made 4 runs for a total of 27 bbls returns. Total recovered fluid is 1702 bbls of 2978 bbls. Pressure increase during the night was 210 psi/hour average 43 Made 3 runs for a total of 22 bbls returns. Total recovered fluid is 1724 bbls of 2978 bbls. Pressure increase during the night was 210 psi/hour average . . .~.---_._---._._._._._----------_._--------------------.----------.-.-.-.-.------------.-.-------------------------.-.---- 2004/4 Maintenance """"""" 2"3~öãc~Ö4"""·"· -. -" -1""" "ëhãiige"d "ti-ëã -ãiia "Iëit" weii with tiÙ;¡ñg" plüg~ "ñe"V.i ñiäštãr"tësted to- "1"ÕKSI~" -" -. and new tree cap. 08-Feb-05 2 Installed repaired 3-1/16" 1 OK tree and tested to 5000 psi. 01-Mar-05 3 Pulled tubing plug. THP = 1000 psi API: 50-133-20539-00~00 RT-GL: 21' RT-THF: 21 ' 113' FSL, 1388' FEL, Sec. 33, T7N, R10W, S.M. Tree cxn = 4-3/4" Otis ¡TOC (est.) - ???' Excape System Details - BHP monitoring green line volume tank located from 7610' - 7653' RKB Excape Svstem Details - Ceramic flapper valves below each module as follows: Flappers MD IRKB): Module 1 - NA Module 2 - 8980' Module 3 - 8743' Module 4 - 8571' Module 5 - 8521' Module 6 - 8439' Module 7 - 8317' Module 8 - 8158' Module 9 - 8035' Module 10 - 7772' Module 11 -7711' WeilName & Number: County or Parish: Perforations MD) B -14 BC-14 Kenai BHT: 9/16/2004 J. R. Thompson Completion Fluid: Last Revison Date: Surface Casinq: 13-3/8", @ 2124' Cmt wI 568 sks of ppg Int.Casinq: 9-5/8", 40 ppf, L-80, STÇ@ 7594' Cmt wi 377 sks of class G Lead slurry at 12.5 ppg, tail with 510sks G slurry at 13.5 ppg Prod. Tubing: 3-1/2", 9.3 ppf, modified 8rd with 6.25" OD protectors to 9329' Cmt wI 832 Gat 15.8 ppg Excape Svstem Details 11 Excape modules placed - Green control line fires module 1 - Yellow control line fires modules 2~6 - Red control line fires modules 1 - Ceramic flapper valves below module (excluding module 1) (TVD) 6% KCL 11/10/2004 (MAM) .. . . ,~¿í(._ ( ?I G Alaska Region Domestic Production P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/564-6489 Marathon Oil Company November 12, 2004 Winton Aubert Alaska Oil & Gas Conservation Commission 333 West ih Ave, Suite 100 Anchorage, AK 99501 Reference: Completion Report 10-407 for permit 204-086 Field: Beaver Creek / Beluga Well: BC-14 Dear Mr. Aubert, Enclosed please find the Well Completion Report with associated attachments for Beaver Creek Well No. 14. This well has been completed cased hole with a 3.5" monobore Excape production string to surface. The well has not produced since its completion, and future remedial work is planned. I apologize for the delay in getting this completion notice to you. Should you require further information, I can be reached at 907-529-0524/713-296- 2730, or bye-mail atJRThompson@MarathonOil.com. Sincerely, C~p~ Sr. Completions Engineer Enclosures: Completion Report Directional Survey Operations Summary Wellbore Diagram \ ORIGINAL STATE OF ALASKA ALAS4 AND GAS CONSERVATION COMMISeiGV WELL COMPLETION OR RECOMPLETION REl"'ORT AND LOG r 1a. Well Status: OilU Gasl:!j Plugged U Abandoned D Suspended U WAGU 1b. Well Class: 20AJi>C 25.105 20AAC25.110 Development 0 Exploratory D GINJD WINJD WDSPLD No. of Completions 1 Other Service D Stratigraphic TestD 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Marathon Oil Company Aband.: 9/22/2004 204-086 3. Address: 6. Date Spudded: 13. API Number: P.O. Box 196168, Anchorage, AK. 99519-6168 7/2/2004 50-133-20539-??-oo 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 113'FSL, 1388'FEL, Sec. 33, T7N,R10W 7/18/2004 Beaver Creek No. 14 Top of Productive Horizon: 8. KB Elevation (ft): 15. FieldlPooI(s): 2078'FSL,338'FEL,Sec.33,T7N,R10VV 162 Total Depth: 2092'FSL,312'FEL,Sec.33,T7N,R10W 9. Plug Back Depth(MD+ TVD): Beluga 9291' MD /8179' TVD 4b. Location of Well (State Base Plane Coordinates): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 314368.188 y- 2430071.363 Zone- 4 9361' MD /8789' TVD A-02B083 TPI: x- 315448.53 y- 2432019.21 Zone- 4 11. Depth Where SSSV Set: 17. Land Use Permit: Total Depth: x- 315475.51 y- 2432032.74 Zone- 4 NA NA 18. Directional Survey: Yes o No U 19. Water Depth, if Offshore: 20. Thickness of Permafrost: NA feet MSL NA 21. Logs Run: SP/GR-IEL-Density/Neutron-Sonic-Single Arm Caliper - MFTs 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT. GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 20" 133 K-55 0 147' 0 147' Driven NA NA 13-318" 68 K-55 0 2124' 0 2124' 16" 568 sx NA 9-518" 40 L-BO 0 7594' 0 7023' 12-1/4" 377 sx L/510 sx T NA 3-112" 9.3 L-BO 0 9329' 0 8757' 8-1/2' 832 sx 80000 23. Perforations open to Production (MD + TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) ~(7702-7712;1763-7773; ð025-B035;..a148-8158; '8302-8312; iS424-8434; 3-112" 9329' NA 7-8517;-8ssa-8566;.s727-8737;>8963-8973; 9022-9032 TVD: 1131- 7141; .7192-7192;;Ý454-7464~577-7587; ffl1-7741 ;\.1853-7863;..:r935- 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. 7945; .;(984-7994;,.8'155-8165; '8391-8401; 8450-8460 DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED See No. 23 o to 28000 Ibs 20/40 Ottawa 26. PRODUCTION TEST Date First Production: NA Method of Operation (Flowing, gas 11ft, etc.): Not Flowing Date of Test: Hours Tested: Production for OiJ-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas"()iI Ratio: 912212004 24 Test Period ... NA 0 0 64/64 NA Flow Tubing Casing Press: Calculated Oil-BbI: Gas-MCF: Water-BbI: Oil Gravity - API (corr): Press. 0 0 24-Hour Rate -. NA 0 0 NA 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". r","Q~~'; None RBDMS 8FL NOV 22 2004 D:~~"'Tt' .' ~~W ~¡ ORIGiNAL -~.. ~ \3\/ --~--.:1 Form 10-407 Revised 12/2003 CONTINUED ON REVERSE 28. TVD 6916' SSTVD 29. Include and briefly su detailed supporting da "None" . NAME Top of Lower Beluga Top of Tyonek 9176' 8446' SSTVD Formation Name LB 16 LB 17 LB20 LB 21 LB23 LB25 LB 26a LB 26b LB28 LB30 LB 31 30. List of Attachments: Directional Survey, Well Event Summary, Well bore Diagram 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Printed Name: James Thompson Title: Sr. Completions Engineer Phone: 713-296-2730/907-529-0524 INSTRUCTIONS FORMATION TESTS e test results. List intervals tested, and attach ecessary. If no tests were conducted, state MD (ft) MFT Pressure (psig) 7707 7769 8031 8155 8313 8436 8515 8568 8740 8977 9036 3077 NA 2608 3241 3243 NA 3569 3617 3430 NA 4169 Contact: Date: 11/12/2004 General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". ~~ò.IJðH~J~Wf~. If none, state "None". · MARATHON Oil Company,Slot #14 BC Pad 1A, Beaver Creek Unit,Kenai Peninsula, Alaska SURVEY L.NG Page 1 Well bore: BC-14 Wellpath: MWD w/Sag <0-9361> Date Printed: 4-Aug-2004 '&1. .,.. INTEQ Created 4-Jul-2004 L titude N60 38 51.1588 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 162.0ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 28.28 degrees Bottom hole distance is 2252.51 Feet on azimuth 28.55 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated · MARATHON Oil Company,Slot #14 BC Pad 1A, Beaver Creek Unit,Kenai Peninsula, Alaska SURVEY LING Page 2 Wellbore: BC-14 Wellpath: MWD w/Sag <0-9361 > Date Printed: 4-Aug-2004 r&i. .,.. INTEQ -- fi.\· '1< ....... .... i. Ù·Ù MD[ft] Inc[<ieg] Azì[deg] TVD[ft] North[ft] East[ft] Dogleg VertiCal Easting Northing Idea/100ftl 8ecöonlftl 0.00 0.00 0.00 0.00 O.OON O.OOE 0.00 0.00 314368.H 2430071.3 164.0C 0.50 95.9C 164.011 0.078 0.71E 0.30 0.27 314368.9C 2430071.2 195.0C 0.20 184.6e 195.0C 0.148 0.84E 1.72 0.27 314369.0 2430071.2 285.0( 0.20 206.5C 285.0C 0.44S 0.76E 0.08 -0.03 314368.9 2430070.9 407.0( 0.30 186.6C 407.0C 0.95S 0.63E 0.11 -0.54 314368.8 2430070.4 556.0( 0.50 188.0C 555.9~ 1.98S 0.49E 0.13 -1.51 314368.6 2430069.3 676.0( 0.80 187.6C 675.9f 3.33S 0.31E 0.25 -2.78 314368.4 2430068.0 799.0e 0.80 193.3C 798.9 5.018 0.001/\ 0.06 -4.42 314368.1 2430066.3 985.0e 1.40 180.6C 984.9 8.558 0.331/\ 0.35 -7.68 314367.7 2430062.8 1111.0( 1.60 184.4C 1110.8! 11.845 0.481/\ 0.18 -10.65 314367.5 2430059.5 1237.0( 1.80 182.0C 1236.8.1 15.575 0.681/\ 0.17 -14.04 314367.2 2430055.8 1360.0C 0.70 185.4C 1359.81 18.255 0.821/\ 0.90 -16.46 314367.0 2430053.1 1486.0C 0.40 281.5C 1485.8C 18.935 1.321/\ 0.67 -17.30 314366.5 2430052.4 1612.0( 1.30 354.9C 1611.7¡ 17.425 1.881/\ 0.99 -16.23 314366.0 2430053.9 1737.0C 1.30 1.20 1736.7f 14.595 1.981/\ 0.11 -13.78 314365.9 2430056.8 1862.0C 1.40 3.80 1861.7 11.655 1.851/\ 0.09 -11.13 314366.1 2430059.7 2075.0( 1.40 8.70 2074.6f 6.488 1.281/\ 0.06 -6.31 314366.8 2430064.9 2148.0( 1.30 4.10 2147.~ 4.778 1.091/\ 0.20 -4.72 314367.0 2430066.6 2210.0( 1.80 5.20 2209.6 3.108 0.951/\ 0.81 -3.18 314367.1 2430068.2 2273.0( 3.20 8.70 2272.5f 0.388 0.591/\ 2.23 -0.61 314367.5 2430070.9 2337.0( 5.00 13.00 2336.3! 4.11N 0.31E 2.85 3.76 314368.5 2430075.4 2400.0C 7.60 15.00 2399.0C 10.81N 2.00E 4.14 10.47 314370.3 2430082.1 2462.0C 10.40 18.90 2460.2 20.06N 4.88E 4.62 19.98 314373.3 2430091.3 2524.0( 12.70 25.50 2520.9f 31.51N 9.63E 4.27 32.31 314378.3 2430102.7 2586.OC 13.70 34.00 2581.3 43.75N 16.66E 3.52 46.42 314385.5 2430114.8< 2649.0( 13.70 34.70 2642.5~ 56.07N 25.08E 0.26 61.26 314394.1 2430127.0 2713.0( 14.00 35.20 2704.6¡ 68.63N 33.86E 0.50 76.48 314403.1 2430139.4- 2775.0C 15.00 33.70 2764.7~ 81.43N 42.64E 1.72 91.91 314412.1 2430152.1 2838.0C 16.00 32.70 2825.4 95.52N 51.85E 1.64 108.68 314421.5 2430166.0 2901.OC 16.30 31.50 2885.9.<1 110.36N 61.16E 0.71 126.17 314431.0 2430180.7 2964.0C 17.30 27.30 2946.2~ 126.23N 70.08E 2.50 144.36 314440.2 2430196.4 3027.OC 18.10 25.5(1 3006.2 143.38N 78.59E 1.54 163.50 314449.0 2430213.4 3089.OC 19.90 25.311 3064.8¡ 161.62N 87.24E 2.91 183.66 314457.94 2430231.5 3151.0C 21.50 26.011 3122.8f 181.37N 96.73E 2.61 205.55 314467.7 2430251.1 3214.0C 22.90 28.00 3181.21 202.57N 107.55E 2.52 229.35 314478.9' 2430272.2 3277.OC 24.40 29.10 3238.9~ 224.76N 119.63E 2.48 254.6 314491.3 2430294.2 3339.0C 25.50 29.80 3295.1 247.54N 132.50E 1.84 280.7 314504.5 2430316.7 3402.OC 27.20 29.611 3351.5¡ 271.83N 146.35E 2.70 308.7" 314518.7 2430340.8 3465.0e 29.911 30.80 3406.9~ 297.84N 161.50E 4.38 338.81 314534.3 2430366.6 3527.0C 31.5CI 31.90 3460.2 324.87N 177.98E 2.73 370.41 314551.2 2430393.3 3591.0( 33.30 31.7C 3514.2E 354.01 N 196.04E 2.82 404.64 314569.7 2430422.2 3654.0C 36.30 30.6C 3565.9! 384.78N 214.63E 4.86 440.54 314588.8 2430452.6 3716.0C 36.5C 30.0C 3615.90 416.55N 233.19E 0.66 477.31 314607.8! 2430484.1 3779.0( 36.4C 30.2C 3666.5 448.93N 251.96E 0.25 514.7 314627.1 2430516.2 3843.0C 36.2C 30.6C 3718.1E 481.61N 271.13E 0.48 552.5~ 314646.81 2430548.6 3906.0C 35.6C 29.2C 3769.1€ 513.63N 289.55E 1.61 589.51 314665.7 2430580.3 3969.0( 34.6C 26.7C 3820.7~ 545.62N 306.54E 2.78 625.7~ 314683.21 2430612.0 4032.0( 34.6C 26.7C 3872.5~ 577.58N 322.61E 0.00 661.4~ 314699.8 2430643.7 4094.0( 34.2C 26.5C 3923.74 608.90N 338.29E 0.67 696.5C 314716.0( 2430674.8 4157.0( 34.1C 26.8C 397!';.8~ 640.51N 354.16E 0.31 731.8E 314732.3f 2430706.1 4219.0( 33.8C 26.4C 4027.31 671.47N 369.66E 0.60 766.4€ 314748.3 2430736.8 All data is in Feet unless otherwise stated Coordinates are from 810t MD's are from Rig and TVD's are from Rig ( Datum #2 162.0ft above mean sea level) Vertical 8ection is from O.OON O.OOE on azimuth 28.28 degrees Bottom hole distance is 2252.51 Feet on azimuth 28.55 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated · MARATHON Oil Company,Slot #14 BC Pad 1A, Beaver Creek Unit,Kenai Peninsula, Alaska SURVEY L.NG Page 3 Wellbore: BC-14 Wellpath: MWD w/Sag <0-9361> Date Printed: 4-Aug-2004 r.~. ..,. INTEQ _Ii..... .1 .. ii Ii , ti.i·c! MD(ft] Inc[deg] Azi(deg] TVD(ft] North[ft] East{ft] Dogleg Vertical Easting Nørthing deal10oo1 Sectionlft1 4281.0C 33.7C 26.9C 4078.8E 702.25N 385.11 E 0.48 800.8~ 314764.21 2430767.4 4344.01 33.5C 27.1r 4131.3~ 733.32N 400.94E 0.36 835.n 314780.5! 2430798.2 4407.0( 33.2r 27.0C 4183.9E 764.16N 416.69E 0.48 870.3 314796.8 2430828.8 4467.0( 33.1f 27.2C 4234.2C 793.37N 431.64E 0.25 903.1e 314812.2 2430857.7 4531.0( 33.1r 27.4C 4287.81 824.43N 447.67E 0.17 938.1 ~ 314828.7 2430888.5 4593.0( 33.5r 28.9C 4339.6 854.44N 463.73E 1.48 972.1£ 314845.2 2430918.3 4655.0( 33.3r 29.2C 4391.3! 884.27N 480.30E 0.42 1006.2~ 314862.3 2430947.9 4718.01 3::1.1r 29.7C 4444.11 914.31N 497.26E 0.54 1040.7f 314879.7 2430977.6 4782.0( 33.2r 30.1C 4497.6! 944.651\ 514.70E 0.38 1075.7£ 314897.6 2431007.7 4845.0( 34.8r 30.1C 4549.9 975.131\ 532.37E 2.54 1110.9 314915.8 2431037.9 4908.0( 35.1C 30.2C 4601.51 1006.34r- 550.50E 0.48 1147.0 314934.4 2431068.8 4972.0( 34.2C 30.4C 4654.21 1037.76/1 568.86E 1.42 1183.41 314953.2 243109Q.9 5035.0( 34.1C 31.3C 4706.~ 1068.12r- 586.99E 0.82 1218.7 314971.8 2431130.0 5097.0( 34.30 30.7C 4757.6 1097.99r- 604.94E 0.63 1253.5 314990.2 2431159.6 5160.0( 36.10 28.3C 4809.1f 1129.60r- 622.80E 3.60 1289.S< 315008.6 2431190.9 5223.0( 36.1C 27.2C 4860.01 1162.45r- 640.09E 1.03 1326.91 315026.4 2431223.5 5287.0( 36.0C 27.5C 4911.7! 1195.90r- 657.39E 0.32 1364.6 315044.2 2431256.6 5350.0( 35.90 27.5C 4962.7! 1228.71r- 674.47E 0.16 1401.6( 315061.8 2431289.2 5413.0( 35.70 27.70 5013.8! 1261.37/1 691.54E 0.37 1438.41 315079.4 2431321.6 5475.0C 35.30 27.70 5064.3~ 1293.24/1 708.28E 0.65 1474.41 315096.6 243135::1.2 5537.0C 35.30 27.90 5114.9~ 1324.93/1 724.99E 0.19 1510.21 315113.8 2431384.6 5599.0C 35.00 27.8( 5165.6~ 1356.49/1 741.66E 0.49 1545.9 315131.01 2431415.9 5663.0( 34.H 26.9( 5218.3' 1388.73r- 758.34E 1.62 1582.21 315148.2 2431447.9 5726.0( 32.0( 25.8( 5271.1< 1419.51 r- 773.60E 3.47 1616.6( 315163.91 2431478.4 5789.01 30.4( 25.0( 5325.0~ 1448.99/1 787.60E 2.62 1649.1! 315178.4 2431507.6 5851.0( 29.6r 24.7( 5378.71 1477.12/1 800.63E 1.31 1680.1 315191.9 2431535.6 5914.0( 29.20 24.5C 5433.6( 1505.24/1 813.50E 0.65 1711.0( 315205.2 2431563.5 5976.0( 29.20 24.7( 5487. 7~ 1532.74/1 826.09E 0.16 1741.11 315218.2 2431590.8 6040.0( 28.5( 25.0( 5543.7f 1560.761\ 839.07E 1.12 1772.0 315231.61 2431618.6 6103.01 27.0r 25.7( 5599.5' 1587.27~ 851.62E 2.44 1801.3( 315244.6 2431644.9 6166.01 25.9r 26.2( 5655.9~ 1612.50~ 863.9OE 1.78 1829.3 315257.31 2431669.9 6228.01 24.6r 26.0( 5712.01 1636.25~ 875.54E 2.10 1855.7 315269.3 2431693.5 6292.01 23.9r 26.2( 5770.31 1659.86~ 887.1OE 1.10 1882.0 315281.2 2431716.9 6355.01 23.2r 27.5( 5828.1 1682.32~ 898.46E 1.38 1907.2( 315292.9( 2431739.2 6418.0( 22.3r 28.6( 5886.21 1703.82~ 909.92E 1.58 1931.51 315304.7 2431760.5 6481.0r 21.7(1 29.20 5944.6 1724.48/1 921.32E 1.02 1955.1£ 315316.4 2431781.0 6543.0r 20.30 28.70 6002.51 1743.92/1 932.08E 2.28 1977.3 315327.5 2431800.2 BB05.0C 18.7(1 27.60 6060.9f 1762.16/1 941.85E 2.65 1998.0 315337.5 2431818.3 6668.0r 17.70 27.50 6120.8( 1779.61/1 950.95E 1.59 2017.7~ 315346.9 2431835.6 6730.0r 16.80 27.90 6180.01 1795.89/1 959.49E 1.46 2036.1 315355.7 2431851.8 6793.0( 16.90 28.40 6240.3( 1811.99/1 968.11E 0.28 2054.3~ 315364.6 2431867.7 6854.0( 16.7(1 28.10 6298.7( 1827.52/1 976.46E 0.36 2072.0 315373.2 2431883.1 6917.0( 15.70 28.50 6359.2( 1843.001\ 984.79E 1.60 2089.5~ 315381.7 2431898.5 6980.0C 14.90 28.50 6419.9E 1857.611\ 992.72E 1.27 2106.2 315389.9 2431913.0 7043.0( 14.10 27.70 6480.91: 1871.521\ 1000.15E 1.31 2121.9~ 315397.6 2431926.7 7105.0( 12.90 26.80 6541.2 1884.38/1 1006.78E 1.96 2136.4£ 315404.4 2431939.5 7168.0r 12.60 27.80 6602.6~ 1896.74/1 1013.16E 0.59 2150.3£ 315411.0 2431951.8 7231.0r 11.60 28.80 6664.2~ 1908.37/1 1019.41£ 1.62 2163.5 315417.4< 2431963.3 7294.0r 10.9(1 29.6C 6726.01 1919.10/1 1025.41£ 1.14 2175.81 315423.6 2431973.9 7357.0r 9.80 30.3C 6788.Of 1928.91/1 1031.05E 1.76 2187.1 315429.4 2431983.6 7420.0( 8.00 29.0C 6850.2~ 1937.37r- 1035.89E 2.87 2196.9 315434.3 2431992.0 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Datum #2 162.0ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 28.28 degrees Bottom hole distance is 2252.51 Feet on azimuth 28.55 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated · MARATHON Oil Company,Slot #14 BC Pad 1A, Beaver Creek Unit, Kenai Peninsula, Alaska SURVEY L.NG Page 4 Well bore: BC-14 Wellpath: MWD w/Sag <0-9361> Date Printed: 4-Aug-2004 Mi. .. INTEQ _'I1;;.2C.C< cc..icc! cc.. (Cj cjf; ;; i1i'??'Y ( <c( MD[tt] lnê[deg] AzJ[deg] TVD[ft) North[ft) East[ft) Dogleg Vertical Easting rdeal100ftl Sectionrttl 7483.0C 6.40 26.9C 6912.79 1944.34N 1039.60E 2.57 2204.81 315438.1 2431998.9 7550.(){ 5.90 26.9C 6979.41 1950.74t> 1042.85E 0.75 2211.9f 315441.5- 2432005.3 7645.(){ 6.10 25.7E 7073.8! 1959.64t> 1047.25E 0.25 2221.91 315446.0 2432014.1 7707.(){ 5.20 24.0C 7135.5f 1965.17t> 1049.82E 1.48 2228.0C 315448.7 2432019.6 7770.0C 4.00 23.7C 7198.3f 1969.7911 1051.87E 1.91 2233.0~ 315450.8 2432024.2 7833.(){ 2.90 23.4C 7261.2f 1973.27t> 1053.39E 1.75 2236.8~ 315452.4 2432027.6 7896.0C 2.40 32.1C 7324.2C 1975.85t> 1054.72E 1.02 2239.7~ 315453.8 2432030.2 7959.0C 1.80 41.1C 7387.1! 1977.71t> 1056.07E 1.08 2242.0C 315455.1 2432032.0 8022.0C 0.80 73.2C 7450.1 1978.58t> 1057.14E 1.90 2243.2f 315456.2 2432032.9 8085.0C 0.40 97.2CJ 7513.1 1978.68t> 1057.78E 0.74 2243.6 315456.9 2432033.0 8146.0C 0.50 107.0C 7574.1 1978.58t> 1058.25E 0.21 2243.8C 315457.3 2432032.9 8209.0C 0.80 102.6C 7637.1< 1978.40t> 1058.94E 0.48 2243.9 315458.0 2432032.7 8271.0C 0.60 104.6C 7699.1~ 1978.22t> 1059.68E 0.32 2244.11 315458.7 2432032.5- 8335.0C 0.90 94.10 7763.1 ~ 1978.11 " 1060.50E 0.51 2244.41 315459.6 2432032.4 8395.0C 0.80 106.8C 7823.11 1977.95" 1061.37E 0.35 2244.7 315460.4 2432032.2 8458.0C 0.90 104.9C 7886.1C 1977.70t> 1062.27E 0.16 2244.9 315461.3 2432031.9 8520.0C 0.80 97.30 7948.1C 1977.52" 1063.17E 0.24 2245.H 315462.2 2432031.7 8584.0C 1.00 85.80 8012.0~ 1977.50" 1064.17E 0.42 2245.6 315463.2 2432031.7 8646.0C 0.80 84.20 8074.0f 1977.58" 1065.14E 0.33 2246. H 315464.2 2432031.8 8709.0C 1.10 92.10 8137.0 1977.61" 1066.18E 0.52 2246.7C 315465.2 2432031.8 8772.0C 0.80 90.80 8200.0 1977.58t> 1067.23E 0.48 2247.1 315466.3 2432031.7 8835.0r 0.80 86.80 8263.0E 1977.60" 1068.11 E 0.09 2247.6C 315467.2 2432031.7 8898.(){ 1.00 74.10 8326.01 1977.7711 1069.07E 0.45 2248.2~ 315468.1 2432031.9- 8962.0C 0.80 83.60 8390.CJ.<i 1977.9711 1070.06E 0.39 2248.8E 315469.1 2432032.1 9024.0C 0.80 68.60 8452.0<1 1978.1811 1070.89E 0.34 2249.4~ 315470.0( 2432032.3 9087.0C 1.00 86.00 8515.0 1978.3811 1071.85E 0.53 2250.0E 315470.9 2432032.5 9150.0C 1.00 87.1CJ 8578.0 1978.4411 1072.94E 0.0'1 2250.~ 315472.0~ 2432032.5 9213.0C 0.80 87.40 8641.01 1978.4911 1073.93E 0.32 2251.1E 315473.0 2432032.5 9276.0C 1.00 77.90 8704.0C 1978.6311 1074.91E 0.40 2251.7~ 315474.0 2432032.7 9311.0C 1.00 90.4CJ 8739.0C 1978.6911 1075.51 E 0.62 2252.0f 315474.6< 2432032.7 9361.(){ 1.00 90.4CJ 8788.9~ 1978.6811 1076.39E 0.00 2252.4f 315475.5 2432032.7 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 162.0ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 28.28 degrees Bottom hole distance is 2252.51 Feet on azimuth 28.55 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated · MARATHON Oil Company,Slot #14 BC Pad 1A, Beaver Creek Unit,Kenai Peninsula, Alaska SURVEY L.NG Page 5 Wellbore: BC-14 Wellpath: MWD w/Sag <0-9361> Date Printed: 4-Aug-2004 INTEQ Comment Pro'ection to TD All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 162.0ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 28.28 degrees Bottom hole distance is 2252.51 Feet on azimuth 28.55 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . 6/29/2004 147 (ft) 6/30/2004 147 (ft) 7/1/2004 147 (ft) 7/2/2004 250 (ft) 7/312004 1,729 (ft) 7/4/2004 2,130 (ft) 7/512004 2,130 (ft) 71612004 2,130 (ft) m/2004 2,130 (ft) 7/8/2004 2,915 (ft) 719/2004 3,567 (ft) 7/10/2004 4,790 (ft) 7/11/2004 5,852 (ft) 7/12/2004 7,114 (ft) 7/1312004 7,245 (ft) 7/14/2004 7,610 (ft) 7/1512004 7,610 (ft) 7/16/2004 7.670 (ft) Rig dn, move to BC 14, rig up. MIl, R/U on BC 14, level location, cant R/U Cont rig up, prepare for spud Complete rig up, spud well, drill 16" hole Drill to 1166, wiper trip, drill to 1729 Drill to csg TD, POH wiper trip, repair rig, RIH wiper trip, circ, POH, LID drctnl tools, R/U, run 13318 csg Run 13 318 csg, RIH stab in string, cmt csg, NID diverter, N/U BOPE N/U BOPE, test, MlU bha #2, P/U 5" DP P/U DP, RIH, drill ant, CBU, attempt test csg, POH, LID drctnl assy, RIH, set ant plug, POH, woe Csg. test,BHA, TIH,Drlg. cmt F/1908' to 2130',Drlg.F/2130' to 2150',CBU,Chg well bore fluids, LOT, Drlg. F/2150' to 2915' Drlg. F12915' to 3567' Drlg.F/3567' to 3906',CBU,Wiper Trip to Shoe, Drlg. F/3906' to 4790' Drlilled F/4790'to 5017',CBU,Drilled F/5017' to 5726',CBU,Wiper trip, Drilled F/5726' to 5852' Drilled F/5852' to 7114' Drilled FfT114' to 7188', Wiper trip, Drilled FfT188' to 7203', CIRC,Bit trip,Dril1ed FfT203' t07245' Drilled FfT245' to 7610', CBU, Wiper Trip,Circ,POOH TOH, LID Bha, Install csg rams, Test BOPE, R/U to run 9-518", Ran 9-518" csg, CIRC, Cement 9-518" Cmt. 9 5/8",Set Packoff, Chg Rams,Test BOP's,Set wear bShg,PU DP,Test CSG,MU Bha,TIH,Drlg Shoe Tract, Drill FfT610' to 7630', eire, LOT,Drill F/7630' to 7670' Printed: 11/12/2004 2:05:37 PM . . 7/1712004 8,696 (ft) 7/18/2004 9,361 (ft) 7/19/2004 9,361 (ft) 7/20/2004 9,361 (ft) Drilled F17670' to 8696' Drill F/8696' to 8822',CBU,Wiper trip to shoe,Drill F,8822' to 9361',CBU,Wiper trip for logs, Wiper trip,CBU,Pooh, Repair Clutch, Pooh,Log Run MFT's, Printed: 11/12/2004 2:05:37 PM . . 7/20/2004 9,361 (ft) Wiper trip, Cut drlg line,CBU, UD DP, 7/21/2004 9,361 (ft) UD DP, Run Excape completion 7/22/2004 9,361 (ft) Run / ant 31/2 excape comp, suspend tbg, N/D BOPE 7/23/2004 9,361 (ft) N/D BOPE, N/U prod tree, test, set BPV, release rig Printed: 11/12/2004 2:06:23 PM . . 8/3/2004 (ft) 9/4/2004 (ft) 9/15/2004 (ft) 9/1612004 9/1712004 9/18/2004 9/1912004 9/2012004 9/21/2004 9/2212004 10/2/2004 10/412004 11/10/2004 11/11/2004 RU wire line to make CBL sonic log MIRU e-line on unit to make static temperature survey Complete equipment checks. Hold PJSM. Perforate Module 1 and perform injection test. Zone too tight to treat. Perforate Module 2 and perform injection test. Secure well and SDFN. (ft) Attempt to frac module 2 w/o success. Frature stimulate modules 3, 4, 5, 6, and 7. Attempted to obtain pressure falloff data in module 3 w/o success. Obtained pressure falloff data on module 4. Secure well and equipment and SDFN. (ft) Pumpe frees in modules 8,9,10, and 11 (injection falloff test in 11). RD frac trucks / RU coil tubing. RIH w/ CT and broke 9 of 10 flappers. Lifted well with nitrogen. Well unloaded fluid but no formation gas. Ran out of nitrogen. POOH w/ CT. (ft) Monitored well for production. RIH with CT and continued lifting well with N2. Well flowing broken frac fluid and trace amounts of fraclflex sand with no indications of any formation gas. Total frac load recovery is 20.4% or 608 of 2978 bbls. (ft) Lifted well with N2. Well unloading broken frac fluid with trtace amounts of frac and flex sand, with no formation gas. Well unloading at rates of 440 to 725 BFPD. Ran out of N2. POOH with CT. Monitored well for production. (ft) Continued lifting well with N2. Well unloading trace amounts of frac and flex sand with no indications of any formation gas. POOH with CT after running out of N2. Monitored well overnight for flow/ pressure build up. (ft) RIH wI CT and lifted well wI N2. Well unloaded total of 107 Bbls with decreasing rate. Well unloading gray formation fines and water w/ no formation gas. POOH wI CT and injected 180,000 set of N2 into well. 70,000 into formation. SI well and monitor. (ft) Injected 8000 set N2. Flowed N2 charge back. Well dead. RIH with CT and tagged Module 11 flapper at 7700'. Lifted well w/ N2. Unable to work CT past flapper at 7700'. POOH and RD CT. Monitored well. (ft) Rig up Expro to run GRlCCL. Unable to get past 5648' ELM. RD. (ft) RU Pollard slickline. Bail sand from 5628' to 5641'. RDMO. (ft) Moved in Crane, CT, pump, tanks and iron. Start RU. (ft) RU equipment. PT CT 200/5000. Fill Ct with 50/50 methanol water. PrinIed: 11/12/2004 2:06:47 PM . . 11/12/2004 (ft) Cleaned fiU from 5640' to 8289'. Found 350' coal bridge from 5650' - 6000'. Unable to make progress past 8289'. Printed: 11/1212004 2:06:47 PM API: 50-133-20539-00-00 RT-GL: 21' RT-THF: 21 ' 113' FSL, 1388' Sec. 33, T7N, R10W, S.M. 8C...14 20",133 ppf, K-55 to 147' RK8 Tree cm = 4-3/4" Otis ppg Excape Svstem. Details - 8HP monitoring green line voluma tank located from 7610' -7653' RKB Excaoe System Details - Ceramic flapPer valves below each module as follows: Flappers MD (RKB): Module 1 - NA Module 2 - 8980' Module 3 - 8743' Module 4 - 8571' Module 5 - 8521' Module 6 - 8439' Module 7 - 8317' Module 8 - 8158' Module 9 - 8035' Module 10 - 7772' Moduie 11 - 7711' Well Name & Number: County or Parish: Perforation*, (MD) BHP: Dated Completed: Prepared By: TD·9361' PBTD - 9291' BC-14 Kenai Completion Fluid: Int. Casing: 9-5/8", 40 ppf, Cmt wi 377 sks of classG Lead slurryiat 12,5 ppg, tail with 510sks G slurry at 3-1/2",9.3 ppf, L-80, EUE modified 8rd with 6.25" OD control line protectors to 9329' Cmt wi 832 sks of class G at 15.8 ppg Excape Svstem Details - 11 Excape modules placed - Green control line fires module 1 - Yellow control line fires modules 2-6 - Red control line fires modules 7-11 - Ceramic flapper valves below each module (excluding module 1) Perfs MD (OH Log): Module 1 - 9022 -9032' Module 2 - 8963 - 8973' Module 3 - 8727 . 8737' Module 4 - 8556 - 8566' 5 - 8507 - 8617' Module 6 - 8424 - 8434' Module 7 - 8302 - 8312' Module 8 - 8148 - 8158' Module 9 - 8025 - 8035' Module 10 - 7763 - 7773' Module 11 - 7702 - 7712' Alaska (TVD) last Revison Date: 9/9/2004 'I . e ~"[&\"[Œ (ill~ &\~&\~æ&\ AI.ASIiA. OILAlO) GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Michael Mullin Advanced Production Engineer Marathon PO Box 196168 Anchorage AK 99519 d(Jer~~ Re: BC-14 304-417 Dear Mr. Mullin: 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 Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested BY ORDER OF THE COMMISSION DATED this J"t/day of November, 2004 Encl. _.. .., , Nov 11 2004 11:10AM HP I.ERJET 320D e 10.4 (. M ~ Marathon MARATHON Oil Compan Alaska Region Domestic Production P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561·5311 Fax 907J564-6489 May 24, 2004 Winton Aubert State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 ~ .-y i f ¡f-""" &l'l:...'-D 11¿004 ~~'. ·"T4:~i,h.. ~,¡ Reference: Application for S nd ry Approval Field: Beaver Cr ek Field Well: Beaver C eek Unit BC-14 Dear Mr. Aubert, Enclosed please find a Appl cation for Sundry Approval, along with the associated attachments for the Beaver Cr ek Unit BC-14. We will be setting a plug abov the bottom 3 intervals to eliminate solids production and bring the well on to production. e intend to set the plug on Monday if it is possible to have approval by then. If you require further informatio please contact me. Sincerely, :f:t4:{:~~ Advanced Production Enginee Telephone: 907-398-9954 Email: MAMullin MarathonOil com Nov '11 200"1\. 11 : lOAM HPeSERJET 3200 e p.5 STATE OF ALASKA D GAS CONSERVATION COMMISSION N FOR SUNDRY APPROVAL 20 AAC 25.280 Operational shutdown Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: ALASKA OIL APPLlCATI Annular Dispos. Other 0 Waiver Stimulate 0 llme extension 0 Re-enter Suspended WeU 0 5. Permit to Drill Number: 1. Type of Request Suspend Repair well Pull Tubing Abandon Alter casing 0 Change approved program 0 2. Operator Name: Marathon Oil Company 3. Address: PO Box 196168, Anchorage, AI< 99519-6168 7. KB Elevation (11): 21' AGL 162' RKB MSL bc4 ~ Oe{p 6. API Number. 5 0133205390000 ¡JGA- Exploratory 0 Service 0 o o Development Stratigraphic 9. Well Name and Number: BCU-14 10. FieldlPools(s): Beaver Creek / Beluga Pool SENT WELL CONDITION SUMMARY Effective Depth MD (ft): Effective Depth TVD (ft): 9291' 8712' MD 8. Property Designation: A-028083 11. Total Depth MD (ft): 9361' Total Depth TVD (ft): 8782' Length TVD Casing Structural 147' 2124' 7016' 8750' Conductor 147' Surface 2124' Intermediate 7594' Production 9329' 20· 13-3/8" 9-518" 3-112" 147' 2124' 7594' 9329' liner Perforation Depth MD (ft): 7702' - 9032' Packers and SSSV Type: Tubing MD (ft): 9329' Tubing Size: TUbing Grade: ESCAPE Completion L·BO EUE Packers and SSSV MD (ft): Perfora1ion Depth TVD (ft): 7124' - 8453' N/A N/A 13. Well Class after proposed work: Exploratory 0 Developmen1 0 Service D 15. Well Status after proposed work: 9/1512004 Oil 0 Gas 0 Plugged 0 Abandoned 0 WAG 0 GINJ 0 WINJ 0 WDSPL 0 12. Attachments: Descripüon Summary of Proposal Detailed Operations Program EI BOP Sketch 14. Estimated Date for Commencing Operations: 16. Verbal Approval: Date: Commission Representative: 17. I hereby certify that tile foregoing is true and correct to the best of my knowledge. Contact Mickey Mullin Printed Name Michael A. Mullin Tille Production Engineer Signature Phone (907) 398-9954 Date COMMISSION USE ONLY 1D-Nov-<J4 Sundry Number. Conditions 01 approval: Notify Commission so that a represen tive may witness Mechani allntegrity Test D Location Clearance 0 Plug Integrity 0 BOP Test 0 Ottler: ç ub ~ + ~ r W'-. l 0 ~ 40 '7 {1,- ¡'Yvi' /4' cv( f) L l( - I ~ ~ / e þ',;r~ '- APPROVED BY THE COMMISSION COMMISSIONER RBDMS BFL NOV) 2 2004 Nov 11 20Q4 11:11AM HP ~ERJET 3200 p.6 ~ e Marathon Oil Company Alaska Region BCl4 Beaver Creek Plngback Procedure D.03.l 0953.CAP .CMP .02 History: Well BC 14 is an 11 mule escape completion with the fracs pumped in Sept. 04. The well was jetted in Sept with only uid returns. In October, wireline tagged fill about 2000' above the perfs. Objective: A 1-3/4" CT work 51 After cleanout a GR/CCL will be be set to plug off modules 1-3 (Lo MD. g will be used to clean out fill to TD (+/- 5000' - 9291'). to verify escape setting depth. After GR/CCL a plug will er Beluga 28.30, and 31). Plug setting depth will be 8700' Procednre 1. MIRU BJCT. Rig 3-1116",10 Foley BOP (dressed for 1-3/4" CT) and flow cross to WHA. 2. Spot N2 and fluid pumps. Spa fluid supply tank (filled wi 6% KCI water), and flow back tank. Rig gas buster to top of ow back tank. Rig in pumping and flowback iron as needed. Rig in Dual Filter PodlCentrifì gal Pump Trailer to filter returned fluid to supply tank. Add FR W -14 friction reducer to K I at 1 galllooo gal. 3. Pickup injector and add wash ozzle. Nipple up injector to WHA. Toolstring win consist of 1-3/4" (WT = 0.125") dimple- n connector, 1-3/4" Double Flapper Check Valve, and 2" Wash Nozzle. 4. Function and pressure test BO (200/4500 psi). Pressure test pumping iron (200/5500 psi). Pressure test flowback iron to hoke manifold. (200/4500 psi) 5. RllI pumping fluid @ minimu rate to 5000'. Increase fluid rate to 2.0 BPM. RllI washing at 15 FPM. Pull test and swab as needed. 6. Wash to 9010'. 7. Circulate bottoms up 2X (120 BL). 8. POOH circulating minimum r te 9. With CT @ surface SI 'WHA. urge CT wi N2. 10. RDMO CTU. 11. RU Eline. Log OR/CCL ftom 12. PU 3-1/2" plug and set at 870 13. N2 lift well to gas buster / ta 14. Open well to sales and test. 000' - 7500'. , (between modules 3 and 4). until well is capable ofsu.staining flow. Nov 11 200~ 11:11AM HP~SERJET 3200 API: 50-133-20539-00-00 RT-GL: 21' RT-THF: 21 ' 113' FSL, 1388' FEL, SeC. 33, TIN. R1OW. S.M. Tree cxn = 4-3/4" Otis ¡TOe (est.) - ???' Excaoe Svslem D~lIs - BHP monitoring green line volume tank located from 7610'- 7653' RKB Excsoo Svstem Details - Ceramic flapper valves below each module as follows: FlaDDers MD CRKB}: Module 1 - NA Module 2 . 8980' Module 3 - 8743' Module 4 - 8571' Module 5 - 8521' Module 6 - 8439' Module 7 - 8317' Module 8 - 8158' Module 9 - 8035' Module 10 - 7772' Module 11-7711' Well Name & Number: County or Parish: Perforations (MD) Angle/Perfs BHP: Dated Completed: Prepared By: PROPOSED BC-14 Lease: Sta1elProv. e p.? (.M) Drive Pice: 20-, 133 ppf, K-55 to 147' RKB Surface Casino: 13-318",68 ppf, K-SS, BTC @ 2124' Cmt wI 568 sks of Class G a1 12 ppg In!. Caslna: 9-518",40 ppf, L-80, BTC @ 7594' Cmt wI 377 sks of class G Lead slurry at 12.5 PPQ, tall with 510sks G slurry at 13.5 ppg Prod. Tubina: 3-1t2", 9.3 ppf, L-80, EUE modified 8rd with 6.25- OD controllina protectors to 9329' Cmt w/ 832 sks of class Gat 15.8 ppg E)(csca Svstam Details - 11 Excape modules placed - Green control line fires module 1 - Yellow control line fires modules 2-6 - Red control line fires modules 1-11 - Ceramic flapper valves below each module (excluding module 1) Perfs MD COH Loa): Module 11 - 7702 - 771Z Module 10 - 7763 - 7773' Module 9 - 8025 - 8035' Module 8 - 8148 - 8158' Module 7 - 8302 - 8312' Module 6 - 8424 - 6434' Module 5 - 6507 - 8517' Module 4 - 6556 - B566' Wireline Set Plug 8700' ] Module 3 - 8727 - 8737' PLUGGED Module 2 . 8ge3 - 8973' PLUGGED Module 1 - 9022 - 9032' PL.UGGED P('o~o.sfEÖ (TVD) USA 6% KCL Las1 Revison Date: 11/10/2004 (MAM) Bond Number - . ~fJL/-oeÞ Bob, As discussed during our telephone conversation today, the correct bond number for Marathon in Alaska is #5194234. Best regards David R. Castillo Sr. Drilling Engineer Marathon Oil Company 713-296-2350 1 of 1 6/9/2004 2:28 PM . illJ~ ~~~~æ . AJ,ASIiA. OIL AND GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 David Castillo Senior Drilling Engineer Marathon Oil Company P.O. Box 196168 Anchorage, Alaska 99519-6168 Re: Beaver Creek BCU-14 Marathon Oil Company Permit No: 204-086 Surface Location: 113' FSL, 1388' FEL, SEC. 33, T7N, RlOW Bottomhole Location: 2082' FSL, 329' FEL, SEC. 33, T7N, RlOW Dear Mr. Castillo: Enclosed is the approved application for permit to drill the above referenced development well. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. Marathon Oil Company assumes the liability of any protest to the spacing exception that may occur. This permit to drill does not exempt you ITom 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 issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty-four (24) hours notice for a representative of the Commissio 0 witness any required test. Contact the Commission's petroleum field inspector at (907) 6 -3 7 (pager). reI BY ORDER 9¡¡ T,HE COMMISSION DA TED thi~ay of June, 2004 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. . . Alaska Region Domestic Production Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/564-6489 May 24,2004 John Norman Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 RECEIVED MAY 2 4 2004 Reference: Drilling Permit Application Field: Beaver Creek Field Well: Beaver Creek Unit BC-14 Alaska Oil & Gas Cuns. Commission Anchorage Dear Mr. Norman, Enclosed please find a PERMIT TO DRILL application, along with the associated attachments for the Beaver Creek Unit BC-14. Please note that Marathon is requesting a waiver for 20 ACe 25.035 (e) (1) (b) requiring a two pipe ram stack. The requests are specified on page 10 of the attached drilling prognosis. A Location Exception Application is required and was applied for separately on May 11, 2004. Please note a small difference in the distances to section lines shown on that application as compared to the attached 10-401. As the survey plats indicate, the proposed location currently sits where pad expansion will be taking place. The Location Exception Application distances were calculated from geologic maps, whereas the 10-401 is a surveyors determination measured from the existing BC-1A well. If you require further information, please contact me. Sincerely, C\bA~\-1) }f'~~ .Per Þ'<:G David R. Castillo Senior Drilling Engineer Telephone: 713-296-2350 Email: DRCastillo@MarathonOil.com OR!Sf t ,~ ~...J . \J'-.t GIr- ?'/'7/ LI)() t . STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 MC 25.005 RECEIVED MAY 24 2004 1 a. Type of Work: DrillŒ] RedrillD 1b. Current Well Class: EXPloratoryD Deve~&kB>im Gtml1@~n~m¡ , SS O. Re--entryD Stratigraphic TestD serviceD Development GasŒ] Anc$¡OJI!lòewD 2, Operator 5. Bond: Œ]Blanket D Single w~IID 11. Well Name and Number: Name: Marathon Oil Company 67F~M-V~~ BCU-14 Bond No. ¡¡a:;¡;;!li~1 3. Address: P.O Box 196168 6, Proposed Depth: 12. Field/Pool(s): Anchorage, AK 99519-6168 MD: 9361 II TVD: 8782 II Beaver Creek 4a. Location of Well (Governmental Section): 7. Property Designation: Beluga Pool A-028083 Surface: 113' FSL 1388' FEL Sec. 33 T7N R10W 8. Land Use Permit: 13. Approximate 30-Jun-04 ( NIA Spud Date: Top of Productive Horizon: 2069' FSL 336' FEL Sec. 33 T7N R10W 9. Acres in Property: 14. Distance to 1560 acres Nearest Property: otal Depth: 2082' FSL 329' FEL Sec. 33 T7N R10W 4950 II 4b. Location of Well (State Base Plane Coorqinates): 10. KB elevation 15, Distance to Nearest ~, RKB-MSL 162 feet Well within Pool: 165011/ Surface: x- 314368.188 y- 2430071.363 Zone- 4 Height Above GL): 21 feet BCU-9Beluga 16. Deviated Wells: 17. Anticipated Pressure (see 20 AAC 25.035) .-'-j Kickoff Depth: 2200 II. Maximum Hole Angle: 23.02° Max. Downhole Pressure: 2426 psig. Max. Surface Pressure: ~Si9. 18, Casing Program: Specifications Setting Depth Quantity õfCement Size Top Bottom c.f. or sacks. Hole CasinQ WelQht Grade CouplinQ LenQth MD TVD MD TVD (IncludinQ StaQe Data) Driven 20 in. 133 K-55 . BTC 100 II 0 0 100 ft 100 ft NIA 16 in. 133/8 in. 68 K-55 BTC 2100 ft 0 0 2100ft 2100 ft 541 sacks ~ 121/4 in. 9 5/8 in, 40 L-80 BTC 7595ft 0 0 7595 ft 7017 II ~sacks ISO' J.,(.. 81/2 in. 3112 in. 9.3 L-80 8rd 9360 ft 0 0 9360 ft 8782 ft 898 sacks 19. PRESENT WELL CONDITION SUMMARY to be completed for Redrill and Re-Entry Operations) " ~. ~~ . Total Depth MD (ft): Total Depth TVD (II.) PI ugs (measured) Effective depth MD (ft) Effective Depth TVD(ft): Junk (measured) Casiml Length Size Cement Volume MD TVD Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee!]] BOP SketchŒ] Drilling Program[K Time v. Depth PlotD Shallow Hazard Analysis 0 Property Plat[K Diverter Sketch[K Seabed ReportD Drilling Fluid program[K 20 AAC 25.050 ReqUirementsD 21. Verbal Approval: Commission Representative: Date: 22. I hereby certify that the foregoing Is true and correct to the best of my knowledge. Contact Printed Name David R. Castillo Title Senior Drilling Engineer Signature )A7. // /l . 1 Q".1.. ~ 1 hr 1)1( C. Phone 713-296-2350 Date May 24, 2004 v Commission Use Onlv I Permit to Drill SI , !JÞ ~ /:I/:Ù _ .2.ò5",j ~ I ~ermit Approval 0 I~ OY I:ee cover letter for Number: 2.. ð - t:J Date: other requirements. C<"""o~ of ",p~ ~pI" "",",'" DYes ~NO Mud log required l. f DYes ~NO r-æ H¥!~ fOF"""" ~'"~ DYes, ~NO Directional survey required ~Yes DNo Other: es 0 '1 0 2..--800 ps ( . ~ ~í;j 6/tí"f/ Approved by: T j ~ ~ BY ORDER OF COMMISSIONER THE COMMISSION Date: \.J l./ I I n <$1#- OR\G\t\JAL . . MARATHON MARATHON Oil COMPANY DRilliNG PROGRAM BCU-14 PERMIT May 24, 2004 Originator: David R. Castillo .:ßt1d ,(.b.r þ{¿ G Drilling Supervisors: Gene Anderson, Roland Lawson Drilling Superintendent: Peter Berga . . Table of Contents General Well Data............................................................................................................................................... .................... 1 Geologic Program Summary................................................................................................................................... ................1 Summary of Potential Drilling Hazards....................................................................................................................................3 Formation Evaluation Summary..............................................................................................................................................3 Drilling Program Summary.............................................................................................................................................. ........4 Casing Program....................................................................................................................... ................................................5 Casing Design........................................................................................................................ .................................................5 Maximum Anticipated Surface Pressure................................................................................................................................. 5 BOPE Program.............................................................................................................................................. ..........................7 Directional Program Summary.................................................................................................................................. ..............8 Directional Surveying Summary................................................................................................................................ ..............8 Drilling Fluid Program Summary............................................................................................................................................. 9 Drilling Flu id Specifications................................................................................................................ ......................................9 Solids Control Equipment............................................................................................................................... ......................... 9 Cement Program Summary................................................................................................................................... ................10 Regulatory Waivers and Special Procedures........................................................................................................................ 1 0 Hydraulics Summary....................................................................................................................................... ......................11 Formation Integrity Test Procedure.................................................................................................................................... ...11 . . General Well Data Wêll Mama ., ; ',0 ¡i, BCU-14 ; Lease/t.iœl1sêi fff;', NA ; .+ Suiface Location X: 2430071 .363 Y: 314368.188 WBS'CoCfê DD.03.09593.CAP.DRL Slot/Pad Pad #1A Field Beaver Creek Spud Date 30-Jun-04 KB Elev.to G.L 21 .0 ft '. County/Provihce Kenai Borough API No. ; NA / Ground LevaJ Slev;to.MSL 141 .0 ft ft State ICountry Alaska .·,Wall Çla~ ii' ';. Exploitation ¡ pe/'m. DatuO}i RKB Ãotal MD 9361 ft ~ig Cøntrâ¢tGlf .:i Inlet Drilling ; Water ~ptff> i;. NA Total TVD 8782 ft Rig Name , Glacier 1 Wqter protection Depth NA Comments: Geoloaic Proaram Summary i MP -.RKß tvD - RKB PorePressµrei Pore Rresstîre;' ¡Xi; .;;¡:.. ~i~ FI:Íd;¡ .:_ FÔì'mation (ft) (ft) psi ppg ; 'w; Sterling B-3 5550.66 5122 1176 4.4 ~ Sandstone Gas / Water Sterling B-4 5731.75 5272 2161 ~ "'.... Sandstone Gas / Water Top U. Beluga 6378.71 5842 3002 ~ ~.r Sandstone Gas Top M. BeluQa 7009.04 6439 ,~~ ,- Sandstone Gas 3308 ~d .~ L.Beluga LB-15 7595.48 7017 2440 to 3387 6Yt6 9.3 Sandstone Gas L.Beluga LB-16 7665.70 7087 3053 8.3 Sandstone Gas L.Beluga LB-17 7765.86 7187 2703 7.2 Sandstone Gas L.Beluga LB-18 7840.90 7262 1936 5.1 Sandstone Gas L.Beluga LB-19 7910.91 7332 2107 5.5 Sandstone Gas L.Beluga LB-20 7985.91 7407 1492 to 2758 3.9 to 7.2 Sandstone Gas L.Beluga LB-21 8100.91 7522 2483 6.4 Sandstone Gas L.Beluga LB-22 8170.91 7592 2246 to 3704 5.7 to 9.4 Sandstone Gas L.Beluga LB-23 8240.91 7662 2267 to 3738 5.7 to 9.4 Sandstone Gas L.Beluga LB-24 8325.91 7747 2613 to 3779 6.5 to 9.4 Sandstone Gas L.BeluQa LB-25 8410.91 7832 3414 8.4 Sandstone Gas L.BeluQa LB-26 8500.91 7922 3657 8.9 Sandstone Gas L.Beluga LB-27 8590.91 8012 2233 5.4 Sandstone Gas L.Beluga LB-28 8655.91 8077 3396 8.1 Sandstone Gas L.Beluga LB-29 8780.91 8202 2852 to 4001 6.1'Ío9\4 Sandstone Gas L.BeluQa LB-30 8870.91 8292 4238 9.8) Sandstone Gas L.BeluQa LB-31 8970.91 8392 2918 to 4094 6f-t69.4 Sandstone Gas L.BeluQa LB-32 9030.91 8452 2939 to 4123 6.7 to 9.4 Sandstone Gas L.Beluga LB-33 9065.91 8487 2951 to 4140 6.7 to 9.4 Sandstone Gas Top U. Tyonek 9230.91 8652 1805 4.0 Sandstone Gas Comments: Parts of table completed with data from BC 13 RFT page 1 of 11 . . Surfaœcloåation Coordinates From Lease/Block J;.ines 1 13 ft FSL 1388 ft FEL of Section 33 < .,. Tq1,Vn§hip/Range Township 7N, Range 10W .... Me/Ìidiaiì Seward c;: . ~tLa1itlJae N 600 38' 15.309" tongitûde W 1510 2' 3.701" / UiTMÄNóÌtll·(Yl,. 2430071.363 UTM East(x), 314368.188 .C<X>rdinatè Syst~(I1'" NAD27 ASP ZONE 4 .'. . Tole~ance ./ .' '.' . " HoriZont¡:¡1 Ä. < DeptHiRKB pisplacemeQ~.(ft} ", . ..... MO" ;: Ä! TVD .... N/S .; EIW . }(ft/i Target... . (ft) ... (ft) .... ;. LÔCâtion (Y) .. (X) .. .¥fi' L.BeluQa LB-15 7595.48 7017 2069 ft FSL, 336 ft FEL, Section 33, T7N, R10W 1955.95 1052.33 Circular - 100 L.Beluaa LB-16 7665.70 7087 2074 ft FSL, 333 ft FEL, Section 33, T7N, R10W 1960.77 1054.92 Circular - 100 L.BeluQa LB-17 7765.86 7187 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1965.69 1057.57 Circular - 100 L.Beluga LB-18 7840.90 7262 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1967.86 1058.73 Circular - 100 L.Beluga LB-19 7910.91 7332 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.71 1059.19 Circular - 100 L.Beluaa LB-20 7985.91 7407 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.21 Circular - 100 L.Beluga LB-21 8100.91 7522 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.20 Circular - 100 L.Beluaa LB-22 8170.91 7592 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.20 Circular - 100 L.Beluga LB-23 8240.91 7662 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.20 Circular - 100 L.Beluga LB-24 8325.91 7747 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.20 Circular - 100 L.BeluQa LB-25 8410.91 7832 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.20 Circular - 100 L.Beluaa LB-26 8500.91 7922 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.19 Circular - 100 L.Beluga LB-27 8590.91 8012 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.19 Circular - 100 L.Beluaa LB-28 8655.91 8077 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.19 Circular - 100 L.Beluga LB-29 8780.91 8202 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.19 Circular - 100 L.Beluga LB-30 8870.91 8292 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.20 Circular - 100 L.Beluga LB-31 8970.91 8392 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.20 Circular - 100 L.BeluQa LB-32 9030.91 8452 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.20 Circular - 100 L.Beluga LB-33 9065.91 8487 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.20 Circular - 100 Top U. Tvonek 9230.91 8652 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.20 Circular - 100 Total Depth 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1968.75 1059.20 Circular - 100 Comments: page 2 of 11 . . Summary of Potential Drillina Hazards Lost Circulation pi~u~i<¡l The Sterling B-3 sands are approximately 1176 psig and 400 md perm. The Lower Beluga intervals have SBHP's that range from a 0.31-.46 psilft. Control losses by using sufficiently sized LCM. Keep the drill pipe moving and avoid if possible excess overbalance. Maintain low fluid loss and thin impermeable filter cake. Circulate hole clean before tripping. Do not POOH or RIH faster than 30 see/stand Differential Sticking Surge/Swabbing Comments: Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the drillers dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC. This well's primary objective is gas and no oil sands are expected to be encountered. No H2S is anticipated. Gas sands will be encountered from the top of the Sterling B-3 +1- 5,550 ft MD RKB (5122 ft TVD RKB) to total depth of the well. These sands will be normally pressured. Formation Evaluation Summary 'Electrrc logs Surface None Oft - 2,100 ft MD Intermediate None 2,100 ft - 7,595 ft MD Production None 7,595 ft - 9360 ft MD Completion NIA None Rig Watch/Basic Cased hole- Gamma Ray/Neutron Basic with GCA, shale density, temperature in and out, sample collection (10' samples). Basic with GCA, shale density, temperature in and out, sample collection (10' samples). Reeves - Quad Combo GRlNeutron, CCL N/A Coring Requirements: None Comments: EXCAPE Completion page 3 of 11 . . Drillina Proaram Summary CONDUCTOR: 1. 2. 3. 4. 5. Drive 20" conductor to +/- 100 ft. RKB. Move in and rig up the Glacier 1 rotary drilling rig. // Install starting head 20" SOW x 21 1/4", 2M flanged. Nipple up 21 1/4", 2M diverter, 16" diverter valve, and 16" diverter line. Function test diverter and diverter valve. SURFACE: 1. 2. Drill a 16" hole to 2100 ft (2100 ft TVD) with Spud Mud. RIH with 133/8" casing and hang off in the slips. Make up stab-in sub and centralizer on 5" drill pipe. TIH with inner string / and latch into stab-in float collar. Cement 13 3/8" casing. Sting out and circulate drill pipe clean. TOOH with inner string. PU 133/8" casing, set casing slips in 20", cut off 13 3/8", ND diverter. Install 13 3/8" slip lock connection X 13 %" 5M-flanged multibowl wellhead/" NU 13 %" 5M BOP'S. Test BOP'S and choke manifold to 250/2800 psi. Set wear bushing. Test surface casing to 2,000 psi. 3. 4. 5. 6. 7. INTERMEDIATE: 1. Drill out float equipment and make 20' of new hole. 2. Displace spud mud with FloPro. Circulate mud until mud weight in equals mud weight out. 3. Test shoe to leak-off. Estimated EMW is 14.53 ppg. // 4. Drill 12 1/4" directional hole to 7595 ft MD (7017 ft TVD) as per directional plan. 5. Make wiper trip. 6. Change out variable pipe rams with 9 %" casing rams. Run test plug and test BOP casing rams to 250/2800 psi. / 7. Run and cement 9 %" casing. Land hanger in multibowl wellhead. 8. Back out landing joint. Change out 9 %" BOP casing rams with variable pipe rams. Run test plug and test BOP piPvams to 250/2800 psi. 9. Set wear bushing. Test casing to 2,000 psi. PRODUCTION: 1. Drill float equipment and 20' of new formation with an 8 W' bit. Circulate mud until mud weight in equals mud weight out.. 2. Test shoe to leak-off. Estimated EMW 15.01 ppg. / 3. Drill an 8 W' hole to 9361 ft MD RKB (8782 ft TVD) per the directional program. 4. TOOH. RU logging company. Run open hole logs as per plan. RD logging company. / 5. TIH to TD for wiper trip. TOOH and lay-down BHA and drill pipe. Pull the wear bushing. 6. Run 3 W' EXCAPE casing string. RU logging company to correlate EXCAPE modules to open hole logs. RD logging company. 7. Cement 3 W' casing while reciprocating. Bump plug with 500 psi over displacement pressure. WOC. / . 8. PU 3 W' casing. PU BOP stack. Run control and electric lines out tubing head outlet. Set slips. Cut 3 W· casing. / 9. LD BOP. Set 3 W' packoff. NU 13 %" 5M X 3 X" 5M tubing head adapter and 3 X" 5M tree. Test tree to 5,000 psi. 10. Rig down and move out drilling rig. Note: Perforating guns will be run on the outside of the 3 W· production casing with a flapper valve just below each perforating gun. Guns are to be activated by a control line to surface. COMPLETION: EXCAPE completion will be finished without a rig. / page 4 of 11 . . Casina Proaram 20 0 133/8 0 9 5/8 0 3 1/2 0 COl'll1e<$>n< /D Dritt./D· b.b. (in) (in) Type (in) 18.73 18.543 BTC Driven 3056 1496 2125 12.415 12.259 BTC 14.375 Diamond 16 3454 1949 1069 8.835 8.75 BTC / 10.625 Diamond 12 1/4 5745 3087 916 2.992 2.867 8rd / 4.5 3,200 81/2 10160 10535 207 .. Cªsing Size (in) Comments: Casina Desian Ca,sing setting· Mud Wt R!/Ia~.mym"Sufi(a~. Size Weight Depth When Set Pre$Sute'" (il'l) (Ib/tt) Grade (TVD) (Ib/gal) (psi) . 20 130.1 K-55 100 NA NA 100 33.49 16.74 13% 68 K-55 2100 9.4 14.59 8.4 1382 2.50 1.90 4.69 '"'"\ 9% 40 L-80 7017 9.5 15.59 9.22 2386 1.15 2.68 2.64 ~ 3)1,. 9.3 L-80 8782 9.5 15.81 9.43 2386 1.29 2.43 1.61 Comments: Maximum Anticipated Suñace Pressure Casing Size (in) 13% 9% 7017 4414 2386 2386 ./ / 3 )I,. 8782 5000 * MAWP = Maximum Allowable Working Pressure. ** MASP = Maximum anticipated surface pressure page 5 of 11 . Comments: MASP calculated as the lesser of MASPfrac and MASPbhp 13 31B inch Surface CasinQ TVDShoe:= 2100·ft TVDOH:= 7017·ft F mud := 30% FG := 14.59·ppg pSI P gas := o.l·ft Pmud := 9.5-ppg MASP frac := FG· TVDShoe - (p gas' TVDShoe) MASP frac = 1382 psi BHP:= PP·TVDOH MASPbhp:= BHP - (Fmud' TVDOH' Pmud) - [( 1 - Fmud)·TVDoH·PgaJ MASP bhp = 1831 psi MASP := mi~ MASP frac' MASP bhp) MASP = 1382psi 9 5/8" Intermediate CasinQ TVDShoe:= 7017·ft TVDOH := 8781·ft Pmud := 9.50·ppg FG := 15.59·ppg psi Pgas:= O.I·ft Fmud:= 30% MASP frac := FG· TVDShoe - (p gas' TVDShoe) MASP frac = 4981 psi BHP := pp. TVDOH BHP = 4302 psi MASPbhp:= BHP - (Fmud' TVDOH' Pmud) - (1- Fmud)·TVDOH·Pgas MASPbhp = 2387psi MASP:= mi~MASPfrac'MASPbhp) MASP = 2387psi page 6 of 11 . PP := 9.22·ppg PP := 9.43·ppg . . 3 1/2" Production CasinQ Modified Chevron Formula psi C1 :== -0.161·- ft C2 :== 0.9394 C3 :== 260· psi P gas :== 0.65 PP :== 9.4·ppg TVDShoe:== 6031·ft MASP :== (Cl' P gas' TVDShoe) + (C2· pp. TVDShoe) + C3 MASP == 2395 psi / BOPE Proaram Casing Surface Cásing Size (in) 13% MAWP (psi) 2665 MASP (psi) 1382 Casing Test Test Fluid Press Density (psi) (Ib/gal) 2000 9 BOPS Sizè"& R~tin~' (1) Hydril 21 %" 2M MSP Diverter with 16" Line (1) 13-5/8" Hydril GK 5M annular (1) 13-5/8" 5M pipe ram (1) 135/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-118" 5M outlets (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram (1) 135/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-118" 5M outlets 250/2800 Intermediate 9% 4414 2386 2000 9.5 Production 3Y:. 5000 2386 2500 9.5 250/2800 Comments: Blowout Preventers The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top and a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets. The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and a vacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. page 7 of 11 . . Wellhead Equipment Summary óesMption Casing Head 13-%" 3M X 13-%" Slip Loc WI 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL 1, PR1 13 %" x 9 %" Fluted Mandrel 13 %" x 3 Yo" Manual Slip Tubing Head 13-%" 3M Studded Bottom X 13-%" 5M Fig Top, WI 2, 2-1/16" 5M Studded Outlets, U, AA, PSL 1, PR1 Adapter Flange 13-%" 5M X 3- Yo" 5M WI Seal Pocket and 3" H BPV Threads Comments: Directional Proaram Summary 0 3580.38 3498.42 2.5 5628.18 5185.88 0 7928.82 7349.91 -1.5 9360.91 8782 0 o o o o o 34.51 34.51 1.5 0 0 0 28.28 355.15 191.08 403.29 28.28 1376.84 740.76 1563.46 28.28 1968.75 1059.22 2235.60 28.28 1968.75 1059.22 2235.60 Comments: BHI proposal 5585 Directional Survevina Summary ~f1terval rvtD 0- 2100 ft 2100-7595ft 7595 - 9360 ft .: MWÐ Survey X X X Magnetic fylliltishot . . Gyro f\¡\ulti~ Comments: page 8 of 11 . Drillina Fluid Proaram Summary Intèrval - MD From To (ft) (ft) o 2100 2100 7595 7595 9360 Comments: Fh.lid~sçripijon Gel I Gelex Spud Mud 9.0 - Flo-Pro w/ 6% KCL + Safecarb 9.0 - Flo-Pro wI 6% KCL + Safecarb Drillina Fluid Specifications Interval - MD From To Density Vis (ft) (ft) (Iþ/gal) (seclqt) o 2100 8.6 - 9 60-100 2100 7595 9.0 9.5,/' 8-12 7595 9360 9.0 10-14 II!I·(J ~ Comments: Mllntegrated Fluids Engineering Plan, April 20th, 2004 PV (cP) Solids Control EQuipment Interval O-TD c:: as' .º Q), ~ '""0 2>' Q) ~ Q) ro L c:: ~' '0 E .r:. Q) ro 0), 0 L;;; " ..9!;, "(J) ~ t/) "0 .;2" 15 c:: ~. Ü CÐ 'C ~ c:: lit ïñ "0' 'E :w e t/) 'S 'S Q) Q) ::::¡ Q) Q) 0 0 ~ ü ü Ü N X X X X Item Shaker Desander Desilter Mud Cleaner Centrifuge Cuttings Dryer Cuttings Injection Zero Discharge Comments: . Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL Flo-Vis, POlypac Supreme UL, KCI, SafeCarb F & M, Barite, Caustic, Conqor 404, SafeScav NA, LubeTex Flo-Vis, DualFlo, KCI, SafeCarb F&M, Barite, Caustic Soda, Conqor 404, SafeScav NA yp (lb(100 tIC) 25-35 ±9.5 <7% 30,000+ 7-10 ± 9.5 ±5% 30,000+ 6-8 ±9.5 ±5% Comments Closed Loop System, Full Containment EqUipment $pecifiêåtibns (quanty, desigA type'brand, fl"I<Xf~I,jflow êåpác(' 2 - Derrick ModeI2E48-90F-3TA N/A 1 - Derrick Model 0522 N/A 2 - Ml/Swaco units N/A Marathon G&I Facility N/A page 9 of 11 The solids control equipment will consist of two flowline cleaners, a desilter, and the MI centrifuge van. Included will be equipment to de-water the underflow from the mud processing equipment to allow for disposal of the cuttings and solids by slurrification and injection into the disposal well at the KGF. . . Cement Proaram Summary Gaôge TÒp of Cem.E::!nt Q!>eliJ Casing Hole Ann Vol Slurry. woe Hole Size MD Size TVD To TOC '\101 Time Excess' (in> (ft) (ft) (in) (ft) (ft5) (ft5) (I:trs) 13 % 2100 2100 16 825 1290 50% 9 % 7595 7017 12 % 470 739 50% 3 % 9360 8782 8 % 1135 1635 50% Comments: Excess calculated on 50% of gauge hole in the open hole. If a 4-arm caliper is run before the cement job, a cement volume with 25% excess over the caliper will be used. .. Casing , Size (in). 13% .S1urry Tail Cement aeS¢r'iptióFI Type I Cement Class "G" Class "G" Class "G" DensitY (Ib/gal) 12 12.5 13.5 13.5 $ µrry \101·· (ft5) 1290 470 .7269 .~ 1635 H1 9.25 Fresh Fresh 16 902 1790 Lead 9% Tail 3% Tail Comments: BJ Proposa1100184438A, May 15,2004 Reaulatorv Waivers and Special Procedures RegulatfotiJPoIicy De.Jiat¡6n AOGCC Regulation 20 ACC 25.035 (e) (1) (b) Requirement for 2 pipe rams, one blind ram, and one annular for a API 5K or above BOP stack. Comments: /''''~! Marathon is requesting a waiver from the above regulation for th~V'¡ Creek 14. Marathon requests that the BOP stack be configured with one pipe ram instead of two, due to rig height rés1;ictions in the running of the 3 1/2" production casing. The height restriction involves having rig crew members routing control line and electrical line through one of the tubing head outlets after the 31/2" casing is cemented and the BOP stack is picked up. This is before setting the casing on slips and cutting the casing sticking up. These lines control firing of the perforating guns and the monitoring of downhole pressure and temperature in our EXCAPE completion system. A similar waiver was requested for the offset Beaver Creek Well, BC 13. No problems were encountered while doing this operation on the above well. NO 110 Pt· w oJ \/112// tp~,f ~A...e.Ç.. ç Cí Yî . ¿~O yJí-/. page 10 of 11 . HYdraulics Summary Rig mud pumps available are shown below. Qty Stroke (in) 8 8 8 3 National Oil Well 5 5 A600PT MpxPre~@ 90% WP (psi) 2,597 2,597 2,597 . Displaaernent@ 95% E¥ff' (gal/stroke) 2.04 2.04 2.04 175/357 175 I 357 Intermediate Production Tabulated below are the expected flow rates, standpipe pressures and nozzle sizes for each hole section. DePth-MD (ft) Standpipe 'Pressure (psi) , Pump Rate (gpm) 2100 16 659 1780 7595 9360 12.25 8.5 604 500 2486 2532 Comments: Assume 5" drill pipe AV (fpm) ECD , (16/gal· Nozzle· SIZ~ (32"s) 1 - 12 1 - 14 2 - 16s 6-13s 3-20s WelJplan hydraulics Well plan hydraulics Wellplan hydraulics 66.8 9.5 Formation Intearity Test Procedure Surface and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test the BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: 170 231 9.88 10.1 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close the ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. page 11 of 11 . 121 1/4" 2M Diverter 1-. I Diverter Spool Marathon Oil Well BC-14 Diverter . Flow line I I I ~ / 116" Automatic ~¡ = ~ '\ - 116" Diverter Line I Knife Valve . . Marathon Oil Well BC-14 BOP Stack ¡Flow Nipple I -----. I Flow Line I 13 5/8" 5M Annular Preventer .. 13 5/8" 5M Double Ram Preventer I Pipe Ram I ------. 21/16" 5M Manually Operated Valves I Blind Ram I 3 1/8" 5M Manually Operated Valve OIOJI]I] :rÌillÎ0m~ J I 135/8"5MCross I ~ l~amillrnøro t 3 1/8" 5M Hydraulically Operated Valve . . Marathon Oil Well BC-14 Choke Manifold IT 0 Gas Buster ITO Blooey Line I Bleed off Line to Shakers ~ ~ ~ I~P q!p q~1 C ~ ~ ~ t 13" 5M Valves î rnømrnø , I 2 9/16" 10M Swaco Hydraulically Operated Choke 3 1/8" 5M Manually Adjustable Choke I From BOP Stack . . Surface Use Plan for Beaver Creek #14 Surface location: Anticipated at 113 ft FSL, 1388 ft FEL, Sec. 33, T7N, R10W, S.M. 1) Existing Roads Existing roads, which will be used for access to Beaver Creek #14, are shown on the attached map. Kenai, Alaska is the nearest town to the site and is shown on the map. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access Beaver Creek #14. 3) Location of existing wells Well BC-14 will be drilled on pad BC 1A. A pad drawing is enclosed that shows existing wells and the proposed location of BC-14. 4) Location of existing andlor proposed facilities The locations of existing production facilities are shown on the enclosed pad drawing. The Beaver Creek 14 will use the existing production facilities and will require only the addition of a new flow line, line heater, separator skid, and meter. 5) Location of Water Supply A new water well will be drilled on Pad 1A for drilling and completing BC-14. In addition, water will be used for operation of the production facilities and for periodic maintenance activities. The new well has been permitted by the DNR/Division of Mining Land and Water and the permit is identified as A2004-09. The new well will be drilled after pad expansion. 6) Construction Materials Pad expansion is necessary for the drilling of BC-14 and up to two additional development wells. The USFWS/Kenai National Wildlife Refuge has approved of pad expansion to meet this need. Gravel for the expansion will be brought to the location from private sources outside of the KNWR and no new material sites will be developed on the Refuge for this project. . . 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The cuttings and excess mud will be hauled to Pad 41-18 of the Kenai Gas Field for disposal into Well KU 24-7, a Class" disposal well (AOGCC Disposal Injection Order No.9, Permit #81-176). b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be injected into approved disposal wells Beaver Creek # 2 (Alaska Oil and Gas Conservation Commission Disposal Injection Order No.4) or hauled to Pad 34- 31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7-194). d) Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. e) Sewage Sewage and wastewater will be collected in steel holding tanks and hauled to a Kenai sanitation facility for disposal. 8) Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. Sand R will collect and transport sanitary wastes to their ADEC approved disposal facility. 9) Plans for reclamation of the surface Beaver Creek #14 will be drilled from an existing pad that will be expanded to accommodate this new well. Reclamation of the pad will occur after the abandonment of Beaver Creek #14 and the other existing wells on the pad. Approval of the plan of reclamation will be obtained from the U.S. Fish and Wildlife Service before any reclamation work beginning. 10) Surface ownership The surface owner of the land in the Beaver Creek Unit is the U.S. Fish and Wildlife Service. The minerals are under the jurisdiction of the U.S. Bureau of Land Management. . 11) Operator's Representative and Certification . I hereby certify that I, or persons under my direct supervision, have inspected the proposed drill site and access route; that I am familiar with the conditions that currently exist; that the statements made in this plan are, to the best of my knowledge, true and correct; and that the work associated with operations proposed herein will be performed by Marathon Oil Company and its contractors and subcontractors in conformity with this plan and the terms and conditions under which it is approved. This statement is subject to the provisions of 18 U.S.C. 1001 for the filing of a false statement. 512'-/ It)'¡ Date: Name and Title: hi'?' PiC David R. Ca 1110, Senior Drilling Engineer Marathon Oil Company P.O. Box 196168 Anchorage, Alaska 99519-6168 (713) 296-2350 co~ PANEL 3" GUARC POST íITYPICAL) lINEt-£ATER r»--- 26.2' x 8.$' '----.J PIPE GUARD I): . I): r;;;;;¡ 16.~ x 9$ .r--::... r--=---. WATER TANK "--:---J~ 32.6'x11.1' 4-, I): t '-- ~.~,~A2~.1' '- LUMINAlRE (TYPICAl) PAD 1A . r --- / COMPRESSION r ELECTRICAL / BUILDING .~f! ~ C::J G" COM""'O. j COM'.";;'; J COOLER BUILDING BUILDING WOLF LAKE COO",O"ŒNUm BCU NO.1 A WELL "UGG ;:::,~~~~ N;.'=;: " 14.8' DIA. WELL HOUSE "\ mV'1<'-1< " N = 2430086.36 1 \ MRTHANOlTAN<O~E = 314428.19 WASTEWATER B'JC5' ~\.VELEV = 141.2 1~~~l~~GN 1388' FEL AS STAKED ~ BEAVER CREEK NO. 14 LL. GRID N:2430071.363 ~ GRID E:314368.188 .- LATITUDE: 60°38'51.159" N LONGITUDE: -151°02'03.701"W ELEV. 141' (2) WATER TANKS 12.0'0111.. T7N R10W SM AK T6N """,\, . ....' ¿ OF ÃI.. ., _.... :'\~"''''''''''-<¡ I' - ,,~.., *...'?~ I - 0 .' '~'-y ; =*....49lli ....*~ ..... .... .. . . . . . . . . ...... ............. ,; ", ,; , "" ,..................................."'" , ~ ". M. SCOTT McLANE .: ff _ ,; ~ '. : ~ - I 1:: ". 4928-S ..' ~ - , 1'~ ". ..' <? - I () ~...........\,.# .: I, . 'rlll'"ESS I Otlþ.1.. ........ 'h\,,""" P.C. Box 468 S01-DCTNA. AK 99669 Consulting C;-roup Testing CLEARING UMrrs WETLANDS SURVEY NOTES . 33 , 34 4r-;- 1. BASIS OF HORIZONTAL COORDINATES IS NGS STATION AUDRY. NAD27 ALASKA STATE PLANE ZONE 4. 2. BASIS OF VERTICAL CONTROL IS NGS MONUMENT 081 (NAVD 88). 3. OFFSETS TO SECTION LINE DETERMINED FROM TIES TO BLM SECTION CORNERS FOUND ALONG THE SOUTH BOUNDARY OF THE TOWNSHIP FOUND THIS SURVEY. o I SCALE 1" = 100' 100 I FEET No. DATE BY APP. DATE OF SURVEY: 5/18/04 BOOK NO.: N/A TEL 907.283.4218 FAX 907.283.3265 PRo.JE;CT NO.: 033088 DRAWING NO.: D33088 SCALE '".100' ORAWIoI BY: USIA GRID (M) Marathon UARATHON Oil Company . ENGINEER APPROVAL 200 I REVISIONS Alaska Region y OA BEAVER CREEK UNIT KENAI, ALASKA SEA VER CREEK NO. 14 WELL AS STAKED SURFACE LOCATION DIAGRAM PROJECT muCT. PROCESS MECHAN. ElECT. INSlRUU. ARCH. SCALE Ow '¡. "*" DATE 5/18/04 CHKO. DATE 1-.100' APP.""" DATE APP. w. TANK FILE NO- 1YP ORG MOO DISC SYST BC3 SOOO 000 o OWG NO. SHT NO REV 0001 · ......,~t~f.~~lfff (~~;-~) ~ >-z zQ <~ 0....« ~~ o Ll.J z U « <..') = ;:; ¡ß 0«0 Q...-, z:.¿:;: OttJU ICk: t-U <Ck: a::: Ll.J <> ~.:;S co @]" BEAVER CREEK PAD 1A CLEARING LIMITS " NOTES SOLUTION, NAD27 ALASKA STATE PLANE ZONE-4 2. BASIS OF VERTICAL CONTROL IS NGS MONUMENT D 81 NEAR lITTLE SKJMO'S IN OOWNTOWN KENAI, ELEVATION:: 84.11 FEET (NAVD 88) 3. FIELD WORK CONDUCTED MOST RECENTL YON FEBRUARY 13, 2004 ~ SCALE '" J... §il i~ ~ .~ ~ ~ ". J. ~ CONTRACTOR MAY NOT BEGIN ANY CONSTRUCTION ACTIVITIes ONSfTE LEGEND ~ @ e -x-x_ -"'- ~ eXISTING DRAINAGE VICINITY MAP o AT: IN: PLAN View TOP LOWER STRUCTU BCU-14 LOCATION R I I L________ I j I I I I I I I I' __... " , I{PŒRJ[JY' I~ I' I , , ..-... r-----ì 1 I b:NTRIFUGEJ . UNIT I ''''Xla' I 1 I . I I 1 I · 1JlW I I (-, I I ....." I I I L._____J r-----1__s-----i í I , I ,.--, 1\ I 1 r I II r : I I " ! I I ' I I ". I I I II 1 I I " 1 I I II I I !! : I is UI / a I I I!í II I L__=_.J r..__ ---.J I r---,., ---,.~' I I ! -\.~ -...~! !.... 1 JIll ICtDIY 3' X 12' I ~... 615 U· _ 1IIIIItI IIÐiIIIIEJr .~ 11111IIL8t \ 7'5'" 6X5 11' f'...... I~I GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT 75... Ii X :5 U' !l w... 75... 6 (, II' Î'I 5\1 9L 11-6110 PT I l- T I'::' I ----, r;:¡ w ~ w ::¡: 5V9L ~ A-6OO PT ..:: - I œ I T \ ~ - . .... PI.L PIT .... . . jm.~ I im._~ ! ~ ..... 13'.... e r;¡¡; ~ ~ "-'---------zrected by bmichoel "I II Dete þlctled: 6-P<.pr-ZOO4 'I Plot Reference is Be 14 Ver 1. I Coordinates ore in feet reference slot #14. I ITrue Vertical Depths ore reference RK8 (Glacier 1).1 [ Ri. I ~~,. I L~~~~___~_j . . I I I MARATHON I 1 I I I 1_ 1 Oil Company I ~-~ \ I I Location: Kenai Peninsula. Alaska i Structure: BC Pod 1 A Well: BC14 Field: Beaver Creek Unit ---~ East (feet) -> o 200 1000 1200 400 600 800 0 20 Conductor 2400 3 1/2 Liner 500 9 5/8 Casing 2200 28.28 A IMUTH Top Tyonek 1000 2235.60' TO TD LB23 Tgt 2000 LB Tgt 1500 , 1800 2000 j L 13 3/8 Casing 1600 0.00 KOP ^ 2.50 2500 7,50 TRUE / End of Hold 1400 I 12,50 DLS: 2,50 deg per 100 It Z 17,50 0 ., ------ 3000 22.50 1200 -+ - ::> Q) 27.50 Q) 32,50 ------ / ...... ...... 34.51 End of Build (!) '-../ 3500 1000 (!) L -+ - '-../ 0.. Q) 4000 TANGENT ANGLE / 800 0 0 34.51 DEG / () 4500 600 - Ä fo, L Q) > 5000 400 Q) End of Hold of Build :J 31.50 / L 5500 I- 28.50 200 I 25.50 V 6000 KOP¡ 13 3/8 Casing 0 DLS: 1,50 deg per 100 It 65DO ,...---- I 7000 9 5/8 Casing LB Tgt I [---- WELL PROFILE DATA ----I End of Drop I 1 7500 I Dog/IDO I LB23 Tgt 1_____ Pp',' ----- MD Die TVO East V. Sect I. 0.00 0,00 28.28 0.00 0,00 0.00 0.00 DOO I 8DOO TARGET ANGLE ¡TIe on 0.00 DEG I KOP 2200.00 0.00 28.26 2200.00 0.00 0.00 0.00 0.00 I 8500 I [rid of Build 3580.38 34.51 2B.28 3498.42 355.15 191.0B 403.29 2.50 I Top Tyonek Tgt I 1 3 1/2 Liner IEndofHDld :>628.18 34,51 28.28 5185.88 1.376,84 740.76 1563.46 0.00 I 9000 I Target 8C14 - LB Tgt - 7595.46 5.00 28.28 7017.00 1955.95 1052.33 2221.07 1.50 I 0 500 1000 1500 2000 2500 I End of Drop 7928.82 0.00 28.28 7349.91 1968.75 1059,22 2235.60 1.50 Vertica I Section (feet) -> I 9360.91 0.00 28.28 8782.00 1968.75 1059.22 2235.60 0.00 I l.!:Q, & Et'\d of Hold Azimuth 28.28 with reference 0.00 N, 0.00 E from slot #14 . . MARATHON Oil Company BC Pad lA BC14 slot #14 Beaver Creek Unit Kenai Peninsula, Alaska PRO P 0 S ALL 1ST I N G by Baker Hughes INTEQ Your ref Our ref License BC14 Ver 1 prop5621 Date printed Date created Last revised 12-Apr-2004 6-Apr-2004 6-Apr-2004 Field is centred on n60 38 50.050,w150 59 49.92 Structure is centred on n60 38 50.050,w150 59 49.92 Slot location is n60 38 51.159,w151 2 3.701 Slot Grid coordinates are N 2430071.360, E 314368.190 Slot local coordinates are 114.48 N 6670.03 W Projection type: alaska - Zone 4, Spheroid: Clarke - 1866 Reference North is True North . MARATHON Oil Company BC Pad 1A,BC14 Beaver Creek Unit,Kenai Peninsula, Alaska Measured Inclin. Azimuth True Vert Depth Degrees Degrees Depth 0.00 100.00 500.00 1000.00 1500.00 2000.00 2100.00 2200.00 2300.00 2400.00 2500.00 2600.00 2700.00 2800.00 2900.00 3000.00 3100.00 3200.00 3300.00 3400.00 3500.00 3580.38 4000.00 4500.00 5000.00 5500.00 5628.18 5628.82 5728.82 5828.82 5928.82 6028.82 6128.82 6228.82 6328.82 6428.82 6528.82 6628.82 6728.82 6828.82 6928.82 7028.82 7128.82 7228.82 7328.82 7428.82 7528.82 7595.48 7595.49 7628.82 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.50 5.00 7.50 10.00 12.50 15.00 17.50 20.00 22.50 25.00 27.50 30.00 32.50 34.51 34.51 34.51 34.51 34.51 34.51 34.50 33.00 31. 50 30.00 28.50 27.00 25.50 24.00 22.50 21. 00 19.50 18.00 16.50 15.00 13.50 12.00 10.50 9.00 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 7.50 6.00 5.00 5.00 4.50 28.28 28.28 28.28 28.28 28.28 0.00 100.00 500.00 1000.00 1500.00 2000.00 2100.00 2200.00 2299.97 2399.75 2499.14 2597.97 2696.04 2793.17 2889.17 2983.85 3077.05 3168.57 3258.25 3345.92 3431. 40 3498.42 3844.20 4256.22 4668.23 5080.25 5185.88 5186.40 5269.54 5354.11 5440.05 5527.30 5615.79 5705.48 5796.29 5888.17 5981. 05 6074.86 6169.55 6265.05 6361.29 6458.21 6555.75 6653.82 6752.37 6851. 34 6950.64 7017.00 7017.01 7050.22 R E C TAN G U L A R COO R DIN ATE S 0.00 N 0.00 N 0.00 N 0.00 N 0.00 N 0.00 N 0.00 N 0.00 N 1.92 N 7.68 N 17.27 N 30.66 N 47.84 N 68.77 N 93.41 N 121. 72 N 153.63 N 189.10 N 228.04 N 270.40 N 316.08 N 355.15 N 564.51 N 813.97 N 1063.42 N 1312.88 N 1376.84 N 1377.15 N 1426.08 N 1473.07 N 1518.09 N 1561.12 N 1602.12 N 1641.07 N 1677.94 N 1712.70N 1745.33 N 1775.81 N 1804.12 N 1830.23 N 1854.13 N 1875.81 N 1895.25 N 1912.43 N 1927.34 N 1939.97 N 1950.33 N 1955.95 N 1955.95 N 1958.38 N 0.00 E 0.00 E 0.00 E 0.00 E 0.00 E 0.00 E 0.00 E 0.00 E 1. 03 E 4.13 E 9.29 E 16.50 E 25.74 E 37.00 E 50.26 E 65.49 E 82.66 E 101. 74 E 122.69 E 145.48 E 170.05 E 191.08 E 303.71E 437.92 E 572.14 E 706.35 E 740.76 E 740.93 E 767.25 E 792.53 E 816.75 E 839.90 E 861. 96 E 882.92 E 902.75 E 921.46 E 939.01 E 955.41 E 970.64 E 984.69 E 997.55 E 1009.21 E 1019.67 E 1028.91 E 1036.93 E 1043.73 E 1049.30 E 1052.33 E 1052.33 E 1053.64 E Dogleg Deg/100ft 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 0.00 0.00 0.00 0.00 0.00 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50 . PROPOSAL LISTING Page 1 Your ref BC14 Ver 1 Last revised 6-Apr-2004 Vert Sect 0.00 0.00 20" Conductor 0.00 0.00 0.00 0.00 0.00 13 3/8" Casing 0.00 KOP 2.18 8.72 19.61 34.82 54.33 78.09 106.07 138.21 174.46 214.73 258.95 307.05 358.92 403.29 End of Build 641.02 924.29 1207.56 1490.84 1563.46 End of Hold 1563.81 1619.37 1672.73 1723.86 1772.72 1819.28 1863.51 1905.37 1944.84 1981. 90 2016.51 2048.65 2078.31 2105.45 2130.06 2152.13 2171.64 2188.58 2202.93 2214.68 2221.07 BC14 - LB Tgt - 4/6/04 2221.07 LB Tgt 2223.83 All data is in feet unless otherwise stated. Coordinates from slot #14 and TVD from RKB (Glacier 1) (162.00 Ft above mean sea level). Bottom hole distance is 2235.60 on azimuth 28.28 degrees from wellhead. Total Dogleg for wel1path is 69.02 degrees. vertical section is from wellhead on azimuth 28.28 degrees. Calculation uses the minimum curvature method. Presented by Baker Hughes INTEQ . . MARATHON Oil Company PROPOSAL LISTING Page 2 BC Pad lA, BCl4 Your ref BC14 Ver 1 Beaver Creek Unit,Kenai Peninsula, Alaska Last revised 6-Apr-2004 Measured Inclin. Azimuth True Vert R E C T A N G U L A R Dogleg Vert Depth Degrees Degrees Depth C 0 0 R D I N A T E S Deg/lOOft Sect 7728.82 3.00 28.28 7150.00 1964.14 N 1056.73 E 1. 50 2230.37 7828.82 1. 50 28.28 7249.92 1967.60 N 1058.59 E 1. 50 2234.29 7928.82 0.00 28.28 7349.91 1968.75 N 1059.22 E 1. 50 2235.60 End of Drop 8000.00 0.00 28.28 7421.09 1968.75 N 1059.22 E 0.00 2235.60 8240.91 0.00 28.28 7662.00 1968.75 N 1059.22 E 0.00 2235.60 LB23 Tgt 8500.00 0.00 28.28 7921. 09 1968.75 N 1059.22 E 0.00 2235.60 9000.00 0.00 28.28 8421. 09 1968.75 N 1059.22 E 0.00 2235.60 9230.91 0.00 28.28 8652.00 1968.75 N 1059.22 E 0.00 2235.60 Top Tyonek Tgt 9360.91 0.00 28.28 8782.00 1968.75 N 1059.22 E 0.00 2235.60 3 1/2" Liner All data is in feet unless otherwise stated. Coordinates from slot #14 and TVD from RKB (Glacier 1) (162.00 Ft above mean sea level). Bottom hole distance is 2235.60 on azimuth 28.28 degrees from wellhead. Total Dogleg for wellpath is 69.02 degrees. Vertical section is from wellhead on azimuth 28.28 degrees. Calculation uses the minimum curvature method. Presented by Baker Hughes INTEQ . MARATHON Oil Company BC Pad lA,BC14 Beaver Creek Unit,Kenai Peninsula, Alaska Comments in wellpath -------------------- -------------------- MD Rectangular Coords. Comment ---------------------------------------------------------------------------------------------------------- TVD . PROPOSAL LISTING Page 3 Your ref BC14 Ver 1 Last revised: 6-Apr-2004 100.00 100.00 0.00 N 0.00 E 20" Conductor 2100.00 2100.00 0.00 N 0.00 E 13 3/8" Casing 2200.00 2200.00 0.00 N 0.00 E KOP 3580.38 3498.42 355.15 N 191.08 E End of Build 5628.18 5185.88 1376.84 N 740.76 E End of Hold 7595.48 7017.00 1955.95 N 1052.33 E BC14 - LB Tgt - 4/6/04 7595.49 7017.01 1955.95 N 1052.33 E LB Tgt 7928.82 7349.91 1968.75 N 1059.22 E End of Drop 8240.91 7662.00 1968.75 N 1059.22 E LB23 Tgt 9230.91 8652.00 1968.75 N 1059.22 E Top Tyonek Tgt 9360.91 8782.00 1968.75 N 1059.22 E 3 1/2" Liner Casing positions in string 'A' ------------------------------ ------------------------------ Top MD Top TVD Rectangular Coords. Bot MD Bot TVD Rectangular Coords. Casing ---------------------------------------------------------------------------------------------------------- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 O.OON O.OON O.OON O.OON O.OOE O.OOE O.OOE O.OOE 100.00 2100.00 7595.48 9360.91 100.00 2100.00 7017.00 8782.00 O.OON O.OON 1955.95N 1968.75N Target name Geographic Location T.V.D. Targets associated with this wel1path Rectangular Coordinates ------------------------------------- ------------------------------------- O.OOE O.OOE 1052.33E 1059.22E 20 Conductor 13 3/8 Casing 9 5/8" Casing 3 1/2" Liner ---------------------------------------------------------------------------------------------------------- Revised BC14 - LB Tgt - 4/6/ 315450.000,2432011.000,0.0000 BC14 - LB23 Tgt - 4/ 315450.000,2432011.000,0.0000 BC14 - T/Tyonek - 4/ 315450.000,2432011.000,0.0000 7017.00 7662.00 8652.00 1955.95N 1955.95N 1955.95N 1052.33E 1052.33E 1052.33E 6-Apr-2004 6-Apr-2004 6-Apr-2004 . . MARATHON Oil Company BC Pad lA BCl4 slot #14 Beaver Creek Unit Kenai Peninsula, Alaska PRO P 0 S ALL 1ST I N G by Baker Hughes INTEQ Your ref Our ref License BC14 Ver propS621 Date printed 6-Apr-2004 Date created 6-Apr-2004 Last revised 6-Apr-2004 Field is centred on n60 38 SO.OSO,w1S0 59 49.92 Structure is centred on n60 38 SO.OSO,w150 59 49.92 Slot location is n60 38 Sl.lS9,w1S1 2 3.701 Slot Grid coordinates are N 2430071.360, E 314368.190 Slot local coordinates are 114.48 N 6670.03 W Projection type: alaska - Zone 4, Spheroid: Clarke - 1866 Reference North is True North . MARATHON Oil Company BC Pad lA,BC14 Beaver Creek Unit, Kenai Peninsula, Alaska Measured Inclin Depth Degrees 0.00 100.00 500.00 1000.00 1500.00 2000.00 2100.00 2200.00 2300.00 2400.00 2500.00 2600.00 2700.00 2800.00 2900.00 7.50 10.00 12.50 15.00 17 .50 3000.00 3100.00 3200.00 3300.00 3400.00 20.00 22.50 25.00 27.50 30.00 3500.00 3580.38 4000.00 4500.00 5000.00 32.50 34.51 34.51 34.51 34.51 5500.00 5628.18 5628.82 5728.82 5828.82 34.51 34.51 34.50 33.00 31.50 5928.82 6028.82 6128.82 6228.82 6328.82 30.00 28.50 27.00 25.50 24.00 6428.82 6528.82 6628.82 6728.82 6828.82 22.50 21. 00 19.50 18.00 16.50 6928.82 7028.82 7128.82 7228.82 7328.82 15.00 13.50 12.00 10.50 9.00 7428.82 7528.82 7595.48 7595.49 7628.82 Azimuth Degrees 0.00 0.00 0.00 0.00 0.00 28.28 28.28 28.28 28.28 28.28 True Vert Depth 0.00 100.00 500.00 1000.00 1500.00 2000.00 2100.00 2200.00 2299.97 2399.75 2499.14 2597.97 2696.04 2793.17 2889.17 2983.85 3077 . 05 3168.57 3258.25 3345.92 3431. 40 3498.42 3844.20 4256.22 4668.23 5080.25 5185.88 5186.40 5269.54 5354.11 5440.05 5527.30 5615.79 5705.48 5796.29 5888.17 5981. 05 6074.86 6169.55 6265.05 6361.29 6458.21 6555.75 6653.82 6752.37 6851. 34 6950.64 7017.00 7017.01 7050.22 R E C TAN G U L A R COO R DIN ATE S O.OON O.OON O.OON O.OON O.OON O.OON O.OON O.OON 1. 92N 7.68N 17.27N 30.66N 47.84N 68.77N 93.41N 121.72N 153.63N 189.10N 228.04N 270.40N 316.08N 355.15N 564.51N 813.97N 1063.42N 1312.88N 1376.84N 1377.15N 1426.08N 1473.07N 1518.09N 1561.12N 1602.12N 1641.07N 1677.94N 1712.70N 1745.33N 1775.81N 1804.12N 1830.23N 1854.13N 1875.81N 1895.25N 1912.43N 1927.34N 1939.97N 1950.33N 1955.95N 1955.95N 1958.38N O.OOE O.OOE O.OOE O.OOE O.OOE O.OOE O.OOE O.OOE 1. 03E 4.13E 9.29E 16.50E 25.74E 37.00E 50.26E 65.49E 82.66E 101.74E 122 . 69E 145.48E 170.05E 191.08E 303.71E 437.92E 572.14E 706.35E 740.76E 740.93E 767.25E 792.53E 816.75E 839.90E 861. 96E 882.92E 902.75E 921. 46E 939.01E 955.41E 970.64E 984.69E 997.55E 1009.21E 1019.67E 1028.91E 1036.93E 1043.73E 1049.30E 1052.33E 1052.33E 1053.64E Dogleg Deg/l00ft . PROPOSAL LISTING Page 1 Your ref BC14 Ver 1 Last revised 6-Apr-2004 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.50 2.50 2.50 2.50 2.50 2.50 2.50 19.61 34.82 54.33 78.09 106.07 Vert Sect G RID Easting COO R D S Northing 2430071.36 2430071.36 2430071.36 2430071.36 2430071.36 2430071.36 2430071.36 2430071.36 2430073.26 2430078.98 2430088.48 2430101.77 2430118.80 2430139.56 2430163.99 2430192.06 2430223.71 2430258.88 2430297.50 2430339.50 2430384.80 2430423.55 2430631.16 2430878.54 2431125.92 2431373.29 2431436.71 2431437.03 2431485.54 2431532.14 2431576.79 2431619.46 2431660.12 2431698.74 2431735.30 2431769.78 2431802.14 2431832.36 2431860.43 2431886.33 2431910.03 2431931.53 2431950.80 2431967.84 2431982.63 2431995.16 2432005.42 2432011.00 2432011.00 2432013.41 All data in feet unless otherwise stated. Calculation uses minimum curvature method. Coordinates from slot #14 and TVD from RKB (Glacier 1) (162.00 Ft above mean sea level) Bottom hole distance is 2235.60 on azimuth 28.28 degrees from wellhead. Total Dogleg for wellpath is 69.02 degrees. Vertical section is from wellhead on azimuth 28.28 degrees. Grid is alaska - Zone 4. Grid coordinates in FEET and computed using the Clarke - 1866 spheroid Presented by Baker Hughes INTEQ 0.00 0.00 0.00 2.50 5.00 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 7.50 6.00 5.00 5.00 4.50 28.28 28.28 28.28 28.28 28.28 2.50 2.50 2.50 2.50 2.50 138.21 174.46 214.73 258.95 307.05 2.50 2.50 0.00 0.00 0.00 358.92 403.29 641.02 924.29 1207.56 0.00 0.00 1.50 1. 50 1.50 1490.84 1563.46 1563.81 1619.37 1672.73 1. 50 1. 50 1.50 1. 50 1. 50 1723.86 1772.72 1819.28 1863.51 1905.37 1. 50 1.50 1. 50 1.50 1. 50 1944.84 1981.90 2016.51 2048.65 2078.31 1. 50 1. 50 1.50 1. 50 1.50 2105.45 2130.06 2152.13 2171.64 2188.58 1.50 1. 50 1.50 1. 50 1.50 2202.93 2214 . 68 2221.07 2221. 07 2223.83 0.00 0.00 0.00 0.00 0.00 314368.19 314368.19 314368.19 314368.19 314368.19 0.00 0.00 0.00 2.18 8.72 314368.19 314368.19 314368.19 314369.25 314372.44 314377.74 314385.15 314394.65 314406.23 314419.85 314435.51 314453.16 314472.78 314494.32 314517.74 314543.01 314564.62 314680.41 314818.38 314956.36 315094.33 315129.70 315129.87 315156.93 315182.92 315207.83 315231.62 315254.30 315275.84 315296.23 315315.46 315333.51 315350.37 315366.02 315380.47 315393.69 315405.67 315416.42 315425.93 315434.17 315441.16 315446.89 315450.00 315450.00 315451.34 . . MARATHON Oil Company PROPOSAL LISTING Page 2 BC Pad 1A,BC14 Your ref BC14 Ver 1 Beaver Creek Unit, Kenai Peninsula, Alaska Last revised 6-Apr-2004 Measured Inclin Azimuth True Vert R E C T A N G U L A R Dogleg Vert G RID C o 0 R D S Depth Degrees Degrees Depth C 0 0 R D I N A T E S Deg/100ft Sect Easting Northing 7728.82 3.00 28.28 7150.00 1964.14N 1056.73E 1.50 2230.37 315454.53 2432019.12 7828.82 1. 50 28.28 7249.92 1967.60N 1058.59E 1. 50 2234.29 315456.44 2432022.55 7928.82 0.00 28.28 7349.91 1968.75N 1059.22E 1. 50 2235.60 315457.08 2432023.69 8000.00 0.00 28.28 7421.09 1968.75N 1059.22E 0.00 2235.60 315457.08 2432023.69 8240.91 0.00 28.28 7662.00 1968.75N 1059.22E 0.00 2235.60 315457.08 2432023.69 8500.00 0.00 28.28 7921. 09 1968.75N 1059.22E 0.00 2235.60 315457.08 2432023.69 9000.00 0.00 28.28 8421. 09 1968."I5N 1059.22E 0.00 2235.60 315457.08 2432023.69 9230.91 0.00 28.28 8652.00 1968.~15N 1059.22E 0.00 2235.60 315457.08 2432023.69 9360.91 0.00 28.28 8782.00 1968.75N 1059.22E 0.00 2235.60 315457.08 2432023.69 All data in feet unless otherwise stated. Calculation uses minimum curvature method. Coordinates from slot #14 and TVD from RKB (Glacier 1) (162.00 Ft above mean sea level) Bottom hole distance is 2235.60 on azimuth 28.28 degrees from wellhead. Total Dogleg for wellpath is 69.02 degrees. Vertical section __5 from wellhead on azimuth 28.28 degrees. Grid is alaska - Zone 4. Grid coordinates in FEET and computed using the Clarke - 1866 spheroid Pre¡;ented by Baker Hughes INTEQ . . MARATHON Oil Company BC Pad 1A,BC14 Beaver Creek Unit, Kenai Peninsula, Alaska PROPOSAL LISTING Page 3 Your ref BC14 Ver 1 Last revised: 6-Apr-2004 Comments in wellpath ~------------~~----- -------------------- MD TVD Rectangular Coords. Comment ----------------------------------------------------------------------------------------------------------- 100.00 100.00 O.OON O.OOE 20" Conductor 2100.00 2100.00 O.OON O.OOE 13 3/8" Casing 2200.00 2200.00 O.OON O.OOE KOP 3580.38 3498.42 355.15N 191.08E End of Build 5628.18 5185.88 1376.84N 740.76E End of Hold 7595.48 7017.00 1955.95N 1052.33E BC14 - LB Tgt - 4/6/04 7595.49 7017.01 1955.95N 1052.33E LB Tgt 7928.82 7349.91 1968.75N 1059.22E End of Drop 8240.91 7662.00 1968.75N 1059.22E LB23 Tgt 9230.91 8652.00 1968.75N 1059.22E Top Tyonek Tgt 9360.91 8782.00 1968.75N 1059.22E 3 1/2" Liner Casing positions in string 'A' ------------------------------ ------------------------------ Top MD Top TVD Rectangular Coords. Bot MD Bot TVD Rectangular Coords. Casing ----------------------------------------------------------------------------------------------------------- 0.00 0.00 O.OON O.OOE 100.00 100.00 O.OON O.OOE 20 Conductor 0.00 0.00 O.OON O.OOE 2100.00 2100.00 O.OON O.OOE 13 3/8 Casing 0.00 0.00 O.OON O.OOE 7595.48 7017.00 1955.95N 1052.33E 9 5/8" Casing 0.00 0.00 O.OON O.OOE 9360.91 8782.00 1968.75N 1059.22E 3 1/2" Liner Targets associated with this wellpath -------------~~---------------------- ------------------------------------- Target name Geographic Location T.V.D. Rectangular Coordinates Revised ----------------------------------------------------------------------------------------------------------- BC14 - LB Tgt - 4/6/ 315450.000,2432011.000,0.0000 BC14 - LB23 Tgt - 4/ 315450.000,2432011.000,0.0000 BC14 - T/Tyonek - 4/ 315450.000,2432011.000,0.0000 7017.00 7662.00 8652.00 1955.95N 1955.95N 1955.95N 1052.33E 1052.33E 1052.33E 6-Apr-2004 6-Apr-2004 6-Apr-2004 Created Dote plotted: 12-Apr-·2004 Ploi Reference BC 14 Ver Î 150 2400 2250 00 1950 1800 1650 1500 1350 ^ , , 1200 ~ +- <D <D 1050 "+- '-..../ 900 0 Z 750 500 450 300 3200 p 150 (Gloçier o ISO o Structure: BC Pod 1 A Well 8C14 Field Beaver Creek Unit 300 4500 ? 4200 ? 150 300 150 40001 3900 ø 3800 ¿ 3700/ 3600" o 150 300 450 450 4800,ø ¿ 500 a Location Kenai Peninsula, Alaska East ( -> 500 750 900 1050 1200 1350 1500 1650 5800 ø 5700 5600 P 5500,ø 5400 " ø 5100 70 00 900 1050 1200 East (feet) > 4/6/04 - 4/6/04 4 - LB 7g1 - 4/6/04 1350 1500 1650 1800 1950 1800 00 Structur-e : BC Pod 1 A il a Well; BC14 Fíeld : Beaver Creek Unit R IJ ~~ 0 o 0 20 D ,) 0 3D ,)2D 3, Î 0 290 r, L 2 0 260 o 240 "1-Z L.J 20 2íO í50 3600 200 í60 9D H30 í70 i\Jormoi 10 veiling ¡'nde All shown ore Measured . . MARATHON Oil Company BC Pad lA BC14 slot #14 Beaver Creek Unit Kenai Peninsula, Alaska 3-D M I N I MUM D I S TAN C E C LEA RAN C ERE P 0 R T by Baker Hughes INTEQ Your ref Our ref License BC14 Ver 1 prop5621 Date printed Date created Last revised 12-Apr-2004 6-Apr-2004 6-Apr-2004 Field is centred on n60 38 50.050,wI50 59 49.92 Structure is centred on n60 38 50.050,w150 59 49.92 Slot location is n60 38 51.159,w151 2 3.701 Slot Grid coordinates are N 2430071.360, E 314368.190 Slot local coordinates are 114.48 N 6670.03 W Projection type: alaska - Zone 4, Spheroid: Clarke - 1866 Reference North is True North Report is limited to clearances less than 200 feet Object wellpath DECREASING CLEARANCES of less than 1000 feet are indicated by an asterisk, e.g. 487.4* BC-13 Verso #3"BC-13,Pad #3 MWD <0-10500>"BC-13,Pad #3 MWD <0-8931>"BC-11,Pad #3 MSS <0-6387>"BC-3,Pad #3 Schlumberger <5943-8858'>"BC-9,Pad #3 GMS <0-15844'>"BC-6,Pad #3 GMS <8000-16247'>"BC-5,Pad #3 PMSS <0 - 8854>"BC-I0,Pad #3 MWD <6433-10005>"BC-3Rd,Pad #3 TOTCO <0 - 15746>"BC-7,BC Pad 7 BC-I1A Version #1"BC-??,BC Pad 7 GMS <0-2800'>"BC-4,Pad #4 MMS<3185-15940'>"BC-4,Pad #4 BC-12 Ver 5"BC-12,Pad #4 MSS <0-10296>"BC-IA,BC Pad 1A Closest approach with 3-D Minimum Distance method Last revised Distance M.D. Diverging from M.D. 13-Aug-2003 3089.2 7400.2 9360.9 15-Dec-2003 3087.8 7214.5 7214.5 17-Apr-2003 3483.0 6428.8 6428.8 25-Feb-2003 4874.6 580.0 5080.0 14-Dec-1994 1635.8 8880.0 8880.0 5-Sep-1992 2720.0 7914.5 7914.5 5-Sep-1992 2706.1 8660.0 8660.0 9-Apr-2001 3982.8 9120.0 9120.0 2-Jun-2003 4874.6 580.0 5080.0 13-Feb-2002 1973.4 2212.5 9360.9 6-Apr-2004 1219.9 3375.0 3375.0 3-Oct-2003 2999.4 4880.0 4880.0 19-5ep-2003 1601.1 7871.7 7871.7 2-Feb-2004 2070.1 9220.0 9220.0 12-Apr-2004 61.9 20.0 2312.5 . . MARATHON Oil Company CLEARANCE LISTING Page 1 BC Pad 1A,BC14 Your ref BC14 Ver 1 Beaver Creek Unit,Kenai Peninsula, Alaska Last revised 6-Apr-2004 Reference we11path Object we11path MSS <0-10296>"BC-1A,BC Pad 1A Horiz Minim TCy1 M.D. T.V.D. Rect Coordinates M.D. T.V.D. Rect Coordinates Bearing Dist Dist 0.0 0.0 O.ON O.OE 0.0 9.0 15.9N 59.8E 75.1 62.5 100.0 100.0 O.ON O.OE 90.4 99.4 16.3N 60.2E 74.8 62.4* 62.4 200.0 200.0 O.ON O.OE 189.9 198.9 17.7N 61. 4E 73.9 63.9 64.0 300.0 300.0 O.ON O.OE 290.4 299.4 18.9N 62.5E 73.2 65.2 65.2 400.0 400.0 O.ON O.OE 390.5 399.5 19.5N 63.1E 72.9 66.0 66.0 500.0 500.0 O.ON O.OE 490.4 499.4 19.5N 64.0E 73.1 66.9 66.9 600.0 600.0 O.ON O.OE 590.4 599.3 18.8N 65.1E 73.9 67.8 67.8 700.0 700.0 O.ON O.OE 690.3 699.3 17.8N 66.5E 75.0 68.9 68.9 800.0 800.0 O.ON O.OE 790.4 799.3 16.7N 67.8E 76.2 69.9 69.9 900.0 900.0 O.ON O.OE 890.7 899.6 15.3N 68.9E 77.5 70.6 70.6 1000.0 1000.0 O.ON O.OE 990.8 999.7 14.0N 69.7E 78.6 71.1 71.1 1100.0 1100.0 O.ON O.OE 1090.4 1099.3 13. ON 70.4E 79.6 71.6 71. 6 1200.0 1200.0 O.ON O.OE 1190.3 1199.2 12.4N 71.5E 80.1 72.6 72.6 1300.0 1300.0 O.ON O.OE 1290.4 1299.3 11.8N 72.6E 80.8 73.6 73.6 1400.0 1400.0 O.ON O.OE 1390.4 1399.2 11.1N 73.8E 81. 4 74.6 74.6 1500.0 1500.0 O.ON O.OE 1490.7 1499.6 10.8N 74.7E 81.8 75.5 75.5 1600.0 1600.0 O.ON O.OE 1590.7 1599.6 10.7N 75.2E 81. 9 76.0 76.0 1700.0 1700.0 O.ON O.OE 1690.6 1699.4 10.7N 75.9E 82.0 76.6 76.6 1800.0 1800.0 O.ON O.OE 1790.6 1799.4 10.5N 76.7E 82.2 77.4 77.4 1900.0 1900.0 O.ON O.OE 1890.8 1899.6 10.4N 77.4E 82.4 78.1 78.1 2000.0 2000.0 O.ON O.OE 1990.8 1999.6 10.2N 77.9E 82.6 78.5 78.5 2100.0 2100.0 O.ON O.OE 2091.0 2099.9 9.9N 78.2E 82.8 78.8 78.8 2200.0 2200.0 O.ON O.OE 2190.7 2199.5 9.5N 78.5E 83.1 79.1 79.1 2212.5 2212.5 O.ON O.OE 2203.2 2212.0 9.5N 78.6E 83.2 79.1 79.1 2225.0 2225.0 O.lN O.lE 2215.7 2224.5 9.4N 78.7E 83.3 79.2 79.2 2237.5 2237.5 0.3N O.lE 2228.0 2236.8 9.4N 78.8E 83.4 79.2* 79.2* 2250.0 2250.0 0.5N 0.3E 2240.5 2249.3 9.3N 78.9E 83.6 79.1* 79.1* 2262.5 2262.5 0.8N 0.4E 2252.8 2261. 6 9.3N 79.0E 83.8 79.1* 79.1* 2275.0 2275.0 1.1N 0.6E 2265.1 2273.9 9.2N 79.2E 84.1 79.0* 79.0* 2287.5 2287.5 1. 5N 0.8E 2277.4 2286.2 9.2N 79.3E 84.4 78.9* 78.9* 2300.0 2300.0 1. 9N 1. OE 2289.3 2298.2 9.3N 79.5E 84.7 78.8* 78.8* 2312.5 2312.5 2.4N 1.3E 2301. 8 2310.7 9.4N 79.8E 85.0 78.8* 78.8* 2325.0 2324.9 3.0N 1. 6E 2313.4 2322.3 9.5N 80.1E 85.2 78.8 78.8 2337.5 2337.4 3.6N 2.0E 2325.0 2333.9 9.8N 80.5E 85.5 78.9 78.9 2350.0 2349.9 4.3N 2.3E 2337.5 2346.3 10.lN 81.1E 85.8 79.0 79.1 2362.5 2362 . 4 5.1N 2.7E 2349.2 2357.9 10.5N 81.7E 86.1 79.2 79.2 2375.0 2374.8 5.9N 3.2E 2360.8 2369.5 10.9N 82.3E 86.3 79.5 79.5 2387.5 2387.3 6.8N 3.6E 2373.3 2382.0 11.5N 83.1E 86.6 79.8 79.8 2400.0 2399.7 7.7N 4.1E 2384.8 2393.5 12.1N 83.8E 86.8 80.1 80.1 2412.5 2412.2 8.7N 4.7E 2397.3 2405.9 12.9N 84.8E 87.0 80.5 80.5 2425.0 2424.6 9.7N 5.2E 2408.7 2417.3 13.6N 85.7E 87.2 80.9 81.0 2437.5 2437.1 10.8N 5.8E 2421. 2 2429.7 14.5N 86.8E 87.4 81. 4 81.5 2450.0 2449.5 12.0N 6.5E 2432.6 2441.0 15.4N 87.9E 87.6 82.0 82.1 2462.5 2461. 9 13.2N 7.1E 2444.0 2452.3 16.4N 89.1E 87.8 82.6 82.7 2475.0 2474.3 14.5N 7.8E 2456.5 2464.7 17.6N 90.5E 87.9 83.3 83.4 2487.5 2486.7 15.9N 8.5E 2468.0 2476.0 18.8N 91. 8E 88.0 84.0 84.2 2500.0 2499.1 17.3N 9.3E 2480.5 2488.3 20.1N 93.4E 88.0 84.8 85.0 2512.5 2511.5 18.7N 10.lE 2492.0 2499.6 21.5N 94.8E 88.1 85.6 85.8 2525.0 2523.9 20.3N 10.9E 2504.4 2511.9 23.0N 96.5E 88.1 86.5 86.7 2537.5 2536.3 21.8N 11.8E 2516.0 2523.2 24.6N 98.1E 88.2 87.4 87.7 2550.0 2548.6 23.5N 12.6E 2527.5 2534.5 26.2N 99.8E 88.2 88.4 88.7 All data is in feet unless otherwise stated. Casing dimensions are not included. Coordinates from slot 4/14 and TVD from RKB (Glacier 1) (162.00 Ft above mean sea level) . Total Dogleg for we11path is 0.00 degrees. Vertical section is from wellhead on azimuth 28.28 degrees. Calculation uses the minimum curvature method. Presented by Baker Hughes INTEQ . . MARATHON Oil Company CLEARANCE LISTING Page 2 BC Pad 1A,BC14 Your ref BC14 Ver 1 Beaver Creek Unit,Kenai Peninsula, Alaska Last revised 6-Apr-2004 Reference wellpath Object wellpath MSS <0-10296>"BC-1A,BC Pad 1A Horiz Min'm TCyl M.D. T.V.D. Rect Coordinates M.D. T.V.D. Rect Coordinates Bearing Dist Dist 2562.5 2561.0 25.2N 13.6E 2540.0 2546.7 28. ON 101.7E 88.2 89.4 89.7 2575.0 2573.3 27. ON 14.5E 2551. 5 2557.9 29.8N 103.6E 88.2 90.4 90.8 2587.5 2585.7 28.8N 15.5E 2563.9 2570.0 31.8N 105.6E 88.1 91.5 91.9 2600.0 2598.0 30.7N 16.5E 2575.7 2581.5 33.8N 107.6E 88.0 92.6 93.0 2612.5 2610.3 32.6N 17.5E 2588.2 2593.6 35.9N 109.7E 88.0 93.7 94.1 2625.0 2622.6 34.6N 18.6E 2600.6 2605.7 37.9N 111. 8E 88.0 94.8 95.1 2637.5 2634.8 36.7N 19.7E 2612.7 2617.4 39.9N 113.9E 88.0 95.9 96.2 2650.0 2647.1 38.8N 20.9E 2625.2 2629.5 41.9N 116. IE 88.1 96.9 97.2 2662.5 2659.4 41.0N 22.OE 2637.6 2641.6 43.9N 118.3E 88.2 97.9 98.2 2675.0 2671. 6 43.2N 23.2E 2649.9 2653.5 45.9N 120.4E 88.4 98.9 99.2 2687.5 2683.8 45.5N 24.5E 2662.3 2665.6 47.9N 122.6E 88.6 99.9 100.1 2700.0 2696.0 47.8N 25.7E 2674.8 2677.7 49.8N 124.8E 88.8 100.8 101.1 2712.5 2708.2 50.3N 27.0E 2687.2 2689.8 51. 8N 127 . OE 89.1 101.7 101.9 2725.0 2720.4 52.7N 28.4E 2699.7 2701.9 53.8N 129.2E 89.4 102.6 102.8 2737.5 2732.6 55.3N 29.7E 2712.3 2714.2 55.8N 131. 5E 89.7 103.4 103.6 2750.0 2744.7 57.8N 31. IE 2724.8 2726.3 57.8N 133.6E 90.0 104.2 104.4 2762.5 2756.9 60.5N 32.5E 2737.2 2738.4 59.8N 135.8E 90.4 104.9 105.1 2775.0 2769.0 63.2N 34.0E 2749.7 2750.5 61. 7N 138.0E 90.8 105.7 105.8 2787.5 2781.1 66.0N 35.5E 27 62.5 27 62.9 63.8N 140.2E 91.2 106.3 106.5 2800.0 2793.2 68.8N 37.0E 2774.9 2775.0 65.8N 142.4E 91. 6 107.0 107.1 2812.5 2805.2 71.6N 38.5E 2787.4 2787.1 67.7N 144.5E 92.1 107.6 107.7 2825.0 2817.3 74.6N 40.1E 2799.8 2799.2 69.7N 146.7E 92.6 108.2 108.3 2837.5 2829.3 77.6N 41. 7E 2812.3 2811.3 71.7N 148.8E 93.1 108.8 108.9 2850.0 2841.3 80.6N 43.4E 2824.7 2823.4 73.7N 151.0E 93.7 109.3 109.4 2862.5 2853.3 83.7N 45.1E 2837.4 2835.7 75.7N 153.1E 94.2 109.8 109.9 2875.0 2865.3 86.9N 46.8E 2849.9 2847.8 77.7N 155.2E 94.8 110.3 110.3 2887.5 2877.2 90.1N 48.5E 2862.5 2860.1 79.8N 157.4E 95.4 110.7 110.8 2900.0 2889.2 93.4N 50.3E 2874.9 2872.2 81.8N 159.5E 96 .1 111.1 111.2 2912.5 2901.1 96.8N 52.1E 2887.3 2884.3 83.9N 161. 6E 96.7 111. 6 111.6 2925.0 2913.0 100.lN 53.9E 2899.0 2895.6 85.8N 163.5E 97.4 112.0 112.0 2937.5 2924.8 103.6N 55.7E 2911.4 2907.6 87.9N 165.7E 98.1 112.4 112.5 2950.0 2936.7 107.1N 57.6E 2922.1 2918.0 89.7N 167.7E 99.0 113.0 113.1 2962.5 2948.5 11 O. 7N 59.5E 2934.5 2930.0 91. 7N 170.0E 99.8 113.6 113.8 2975.0 2960.3 114.3N 61. 5E 2945.8 2940.9 93.5N 172 . 3E 100.7 114.4 114.6 2987.5 2972 .1 118. ON 63.5E 2957.7 2952.5 95.2N 17 4. 7E 101.6 115.2 115.4 3000.0 2983.9 121.7N 65.5E 2969.0 2963.5 96.8N 176.9E 102.6 116.0 116.3 3012.5 2995.6 125.5N 67.5E 2981.4 2975.4 98.5N 179.5E 103.6 116.9 117.3 3025.0 3007.3 129.4N 69.6E 2992.0 2985.7 100.0N 181.8E 104.7 118.0 118.5 3037.5 3019.0 133.3N 71. 7E 3003.4 2996.6 101. 6N 184.4E 105.7 119.1 119.7 3050.0 3030.6 13 7 . 2N 73.8E 3015.4 3008.2 103.3N 187.1E 106.7 120.4 121.0 3062.5 3042.3 141.2N 76.0E 3027.7 3020.0 104.8N 189.9E 107.7 121.7 122.4 3075.0 3053.9 145.3N 78.2E 3039.1 3031.1 106.2N 192. 6E 108.9 123.0 123.9 3087.5 3065.5 149.4N 80.4E 3051.3 3042.8 107.7N 195.4E 110.0 124.4 125.4 3100.0 3077.0 153.6N 82.7E 3062.1 3053.3 109.0N 198.0E 111. 2 126.0 127.1 3112.5 3088.6 157.9N 84.9E 3074.3 3065.0 110.3N 201.0E 112.3 127.6 128.9 3125.0 3100.1 162.2N 87.2E 3085.0 3075.3 111. 6N 203.7E 113.5 129.4 130.8 3137.5 3111. 6 166.5N 89.6E 3096.8 3086.7 112.9N 206.7E 114.6 131. 2 132.8 3150.0 3123.0 170.9N 92.0E 3108.9 3098.3 114.2N 209.8E 115.7 133.1 134.7 3162.5 3134.5 17 5. 4N 94.4E 3121. 0 3109.9 115.5N 212.8E 116.8 135.0 136.7 3175.0 3145.9 179.9N 96.8E 3133.8 3122.2 116. 8N 216.0E 117.9 137.0 138.7 3187.5 3157.2 184.5N 99.2E 3145.8 3133.8 118. ON 219.0E 119.0 138.9 140.8 All data is in feet unless otherwise stated. Casing dimensions are not included. Coordinates from slot #14 and TVD from RKB (Glacier 1) (162.00 Ft above mean sea level). Total Dogleg for wellpath is 0.00 degrees. Vertical section is from wellhead on azimuth 28.28 degrees. Calculation uses the minimum curvature method. Presented by Baker Hughes INTEQ . . MARATHON Oil Company CLEARANCE LISTING Page 3 BC Pad lA,BC14 Your ref BC14 Ver 1 Beaver Creek Unit,Kenai Peninsula, Alaska Last revised 6-Apr-2004 Reference wellpath Object wellpath MSS <0-10296>"BC-1A,BC Pad lA Horiz Min'm TCyl M.D. T.V.D. Rect Coordinates M.D. T.V.D. Rect Coordinates Bearing Dist Dist 3200.0 3168.6 189.1N 101.7E 3158.5 3146.1 11 9 . 2N 222.0E 120.1 140.9 142.8 3212.5 3179.9 193.8N 104.3E 3170.5 3157.7 120.4N 224.9E 121.3 142.9 144.8 3225.0 3191. 2 198.5N 106.8E 3183.2 3170.0 121. 6N 227.8E 122.5 145.0 146.9 3237.5 3202.4 203.3N 109.4E 3196.5 3182.9 122.8N 230.8E 123.6 147.0 148.9 3250.0 3213.7 208.1N 112.0E 3210.4 3196.4 124.1N 233.8E 124.6 149.0 150.8 3262.5 3224.8 213. ON 11 4 . 6E 3222.4 3208.0 125.3N 236.3E 125.8 150.9 153.0 327 5.0 3236.0 218.0N 11 7 . 3E 3234.2 3219.5 126.5N 238.7E 127.0 152.9 155.3 3287.5 3247.1 223.0N 120.0E 3246.1 3231. 1 127.7N 241. 1E 128.2 155.0 157.8 3300.0 3258.2 228.0N 122.7E 3255.7 3240.5 128.6N 243.2E 129.5 157.2 160.5 3312.5 3269.3 233.2N 125.4E 3267.6 3252.0 129.7N 245.8E 130.7 159.6 163.5 3325.0 3280.4 238.3N 128.2E 3277.1 3261. 2 13 0 . 6N 248.0E 132.0 162.2 166.6 3337.5 3291. 4 243.5N 131.0E 3288.9 3272.6 131.7N 250.8E 133.0 164.9 170.0 3350.0 3302.3 248.8N 133.9E 3298.7 3282.1 132.6N 253.1E 134.3 167.8 173.6 3362.5 3313.3 254.1N 136.7E 3310.9 3293.8 133.6N 256.2E 135.3 170.8 177.5 3375.0 3324.2 259.5N 13 9. 6E 3320.4 3303.0 134.4N 258.6E 136.4 174.0 181. 6 3387.5 3335.1 264.9N 142.5E 3329.5 3311. 8 135.1N 261. 1E 137.6 177.3 186.0 3400.0 3345.9 270.4N 145.5E 3341. 2 3322.9 136.0N 264.3E 138.5 180.8 190.6 3412.5 3356.7 27 5. 9N 148.5E 3349.5 3330.8 13 6. 7N 266.7E 139.7 184.5 195.4 3425.0 3367.5 281. 5N 151. 5E 3361.0 3341. 9 13 7 . 6N 270.1E 140.5 188.3 200.3 3437.5 3378.2 287.1N 154.5E 3369.2 3349.6 138.2N 272.7E 141. 6 192.3 205.5 3450.0 3388.9 292.8N 157.5E 3380.7 3360.5 139.0N 276.3E 142.3 196.4 210.8 All data is in feet unless otherwise stated. Casing dimensions are not included. Coordinates from slot #14 and TVD from RKB (Glacier 1) (162.00 Ft above mean sea level). Total Dogleg for wellpath is 0.00 degrees. Vertical section is from wellhead on azimuth 28.28 degrees. Calculation uses the minimum curvature method. Presented by Baker Hughes INTEQ 0+00 3580+38 34+51 5628+18 34+51 7595+48 7928+82 9360+91 0+00 Vrt Ref: RKB (Glacier 1) Hrz Ref: slot #14 North on true Units : feet Dir+ TVD [f] N/S [f] E/W [f] Polar crd+[f] Curv+ Tf DLS I 100 Ft 28+281 _ 28+281 2200+00 N 28+281 3498+42 N 28+281 5185+88 N 28+281 28+281 7349+91 N 28+281 ~ N o + (~(:r 0+00 Tie 0+00 KOP/EoIH/EoDH 403+29 EoB/EoDH 1563+46 EoIH/EoDH 2221+07 EoD/EoDH/Target 2235+60 EoD/EoDH 2235+60 EoIH/EoDH 0+00 E 355+15 E 1376+84 E o 00 + ------------- 191 07 + ------------- 740 76 + ------------- 1f'rt'i19 72"2 ~.......I~+.....I;";,,I ---------......--- 1968+75 E 1059+21 _____________ 1968+75 E 1059+21 _____________ -------- ----- ------- -------- ---------- ---------- ------------- ----...... ---- -------- --------------------- -------- ----- ------- -------- ---------- ---------- ------------- ----- ---- -------- --------------------- -------- ----...... ------- -------- ---------- ---------- ------------- ----- ---- -------- --------------------- -------- ----- ------- -------- ---------- ---------- ------------- ----- ---- -------- --------------------- -------- ----- ------- -------- ---------- ---------- ------------- ----- ---- -------- --------------------- -------- ----- ------- -------- ---------- ---------- ------------- ----- ---- T+V+D : Polar: 2221+07 28+28 N/S coordinate: N 1955+95 Latitude: n60 39 10+426 E/W coordinate: E 1052+33 Longitude: w151 1 42+61 Dimension #1 : IIDIIIII <- Rotation from North : ______ Shape : Dimension #2 : --______ Thickness: ________ Tgt offset from wellpath? : No .. -------- --------------------- Direction: 28+28 N/S coord: N 0+00 E/W coord: E 0+00 cir'cle l\1AONOIL 0 "Veil Beaver Creek # 14 K.enaiPeninsula, Alaska Prepared by: TonyTykalsky Reviewed by: HalMartells Presented to: David CastUlo e . IFE Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 A TTN: David Castillo David: Enclosed is the recommended drilling fluid program for the Beaver Creek # 14 Well to be drilled this year. The following is a brief synopsis of the program. Overview: Beaver Creek # 14 is a development well targeting the Beluga formation at the Beaver Creek field. Flo-Pro fluid will be used for the intermediate and production intervals. After logging the production interval, the well will be completed with a 3-112" excape system cemented in place. Surface Interval: The surface interval will be drilled with the standard Gel/Gelex spud mud. No problems were noted in this interval while drilling Beaver Creek # 11 & # 13. Intermediate Interval: This interval will be drilled with a Flo-Pro NT fluid. After drilling out the surface cement, the well will be displaced to a standard Flo-Pro KCl fluid. Safecarb bridging material will be maintained according to the mud program to minimize losses to the formation. Fluid loss should be maintained @ 7 - 9 cc's API. NOTE: Since this fluid will also be used in the production interval, care should be taken to maintain recommended mud properties while drilling the intermediate interval. Production Interval: This interval will be drilled with the same fluid that was used to drill the intermediate interval. The fluid will be pre-treated with Bicarb and/or citric acid prior to drilling out the cement. Any further fluid dilutions will be made in order to keep the mud properties at the recommended specifications. Fluid loss should be maintained @ 7 - 9 cc's API for this interval. Completion: The cement will be displaced with 6% KCl brine for the completion phase of the program. Conqor 303A will be added to the drilling fluid that will be left between the 3-1/2" completion string and the 9-5/8" casing on the final circulation prior to cementing. Tony Tykalsky Project Engineer 1M-I SW ACO Reference Wells: Beaver Creek #10, #11, #13 NOTE: This pr02:ram is provided as a 2:uide onlv. Well conditions will always dictate fluid properties required. r:zj f8IÆ rlm'~ fltlFE n ~ fiR e . Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. EXECUTIVE SUMMARY Our overall goal is no spills and no incidents while providing fluids and solids control services to our customer. Our goal for Beaver Creek # 14 is to remove drill solids from the mud system at a cost of less than $0.23 per pound. This has been the average for the last three years of centrifuge van operations With the revised fluid formulation (utilizing the intermediate interval fluid for the production interval), we expect to reduce both fluid cost and disposal cost. Use of the MI Swaco centrifuge van for the last four years has provided an estimated savings in dilution and disposal costs to Marathon Oil of over $600,000. With continued usage of our equipment, we expect to provide more savings to you during future operations. r:zi II.FE ~~ e . IFE Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervals ~:~ Dêptb. :Jntêrv~1 , (ft) ,P;'&'<,' . ',~> c",Berithn'lark Fluid cost per foot Volume Usage Solids Removal 0-2100' < $5.64 ft < 2230 bbls 2100 - < $34.75 ft < 3946 bbls 7595' 7595 - 9360' < $11 .72 ft < 372 bbls Total Project Targets for Drilling Interval Avg. < $23.88 ft Max. <6546 bbls < $0.23 Ib No Spills from Centrifuge Van Operation r:zi .IÆ ~~ . . _IFE Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. Project Summary Casing Hole Casing Depth TVD Mud Mud Sum Interval Size Size Program System Weight Days Mud Cost (in) (in) (ft) (ft) Solids Control (ppg) 13 3/8" 16" 2100' 2100' GeVGelex Spud Mud 8.6 - 9.4 5 $11,841 Screens 150/180 mesh Desilter Centrifuge Van 9 5/8" 12-1/4" 7595' 7017' Flo- Pro w/SafeCarb tp 10 $190,955 Screens 180 - 210 mesh Desilter Centrifuge Van 3-1/2" 8-1/2" 9360' 8782' Flo-Pro w/SafeCarb 9.0- 7 $20,679 Screens 230 - 210 <9.5 mesh Desilter Centrifuge Van 3 1/2" 8-1/2" Completion 9360' 8782' 6% KCI 8.55 2 $2,839 ~ Utilize all solids control equipment to minimize the build up of drill solids in the system (if possible, centrifuge the surface mud during trips to reduce drill solids). ~ Condition the mud prior to running casing for all intervals. ~ Cost includes the use of3% Lubetex in the intermediate interval. ~.IÆ ~ Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. - M-I Gel 446 0 0 0 446 2.74 Gelex 28 0 0 0 28 0.15 Soda Ash 16 20 4 0 40 0.27 Caustic Soda 22 39 4 0 65 0.75 Conqor 404 0 9 1 0 10 5.09 SafeScav NA 3 9 1 0 13 2.17 Bicarb 22 20 15 0 57 0.45 Conqor 303 0 0 0 4 4 0.85 Plo Vis 0 316 30 2 348 30.29 Desco CP 22 0 0 0 22 0.46 Polypac UL 13 158 19 0 190 13.15 Bioban BP Plus 0 39 30 0 69 0.67 KCl 0 1657 156 42 1855 10.31 Safecarb 0 1578 149 0 1727 13.35 Lubetex 0 45 4 0 49 15.89 Citric Acid 0 0 7 0 7 0.31 Defoam X 0 44 2 0 46 1.79 Engineer Service 5 10 7 2 24 - e . AIFE - Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. Offset Well Information Well Hole Size Depth PPG PV YP FL Comments BC #10 8.5 215 8.65 12 37 20 Spud in 2385 8.9 16 13 10.6 Condition mud for casing run w/Desco CF 6.125 3198 8.85 5 19 7.2 Drlg out, LOT 16.42 EMW, FloPro fluid 4516 9 6 21 7.6 Drlg 1318' in one day 5260 9 7 24 7.5 Drlg ahead 6440 9.25 8 29 7.1 Short trip - backreaming required 6906 9.3 9 27 7 Trip for bit - backream 7480 9.4 10 25 6.4 Trip in - OK 7788 9.5 10 25 6.3 Bit trip - backream through new hole section 8418 9.35 9 21 5.8 Trip in - OK drlg ahead 8587 9.4 9 19 6 Drlg ahead, trip for bit, backream new hole section 8854 9.55 9 20 6 @ T.D. POH for logs 8854 Spot 16 PPG pill on bottom prior to running casing BC #11 17.5 400 8.75 15 25 14 Spud in 1520 8.95 17 36 12.2 Drlg ahead 2202 9.4 15 25 9.4 TD of surface interval 12.25 2242 9.2 7 19 14.8 Drill out 3697 9.35 10 18 18.6 Drill ahead 4656 9.35 8 20 19.6 Drill ahead 5714 9.35 9 22 18.4 Short trip ok 5910 9.5 9 20 18.4 Adding SafeCarb to combat losses to formation 6620 9.4 10 20 15.4 Drlg ahead 6825 9.5 11 28 17.8 Drlg ahead, add Lubetex 7120 9.5 11 29 7 Drlg ahead control fluid loss with Pac 7260 9.6 12 31 7 Condition mud, run & cement casing 8.5 8036 9.35 10 26 6.8 Dril out drlg ahead 8652 9.4 10 24 7.4 Drlg ahead getting 1000 unit of gas 8931 9.55 9 22 8 At td - run logs ~.IÆ ~~ . . - IIIIFE Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. Offset Well Information BC #13 16 0 8.5 19 34 15 Spud in 1013 8.75 8 25 20 Drlg ahead 2301 9.05 10 28 9.6 TD of surface interval 12.25 2360 8.95 12 21 7.2 Drill out 3456 9.25 12 19 7.4 Drill ahead 4353 9.5 11 23 6.9 Drill ahead 5486 9.2 22 21 6.6 Drill ahead 6360 9.2 10 25 7.2 Drill ahead 6477 9.3 11 25 7.4 Trip for bit, some tight spots 6861 9.2 11 23 6.6 Drill ahead, short trip, tight spots, some seepage losses 7255 9.3 14 24 5.4 Drill ahead maintain PPG with centrifuge van 7308 9.3 12 26 8 Drill to casing point, losing 3 - 5 bph to formaiton 8.5 7328 9.3 8 17 6.8 New mud, drlg ahead 7621 9.25 9 22 5.4 Drlg ahead 8046 9.3 10 24 5.4 Drill ahead, add 3% Lubetex 8542 9.4 9 25 5.7 Short trip, OK 9111 9.4 10 26 6.6 Increasing clays, add Klagard 9343 9.6 10 27 6.8 Short trip, tight spots, increase PPG with barite 9728 10.1 11 31 5.8 Drlg ahead, circ out gas, increase PPG with barite 9873 10.35 13 29 5.6 Increase PPG after short trip, POH for MWD 10152 10.35 12 32 5.6 Drlg ahead, short trip OK 10500 10.4 13 30 6 Drlg to td, POH for logs, OK trip ~.IFE ~ . . Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. Plans & Procedures => COMMUNICATION - The Field Mud Engineer will communicate daily with the In-Town Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole difficulties, possible changes to the mud program, and proposals to use products not included in the mud program. => Whole Mud Losses to the Sterlng B3 & B4 Sands - Refer to fluid formulas and the Optibridge charts for maintaining proper bridging material concentration in the mud system while drilling the intermediate and production intervals. => FLUID LOSS CONTROL - In the intermediate interval the API fluid loss will be maintained in the 7 - 9 cc's range. In the production interval the API fluid will be maintained between 6 - 8 cc's at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum. => LSRV - When drilling with a FloPro fluid, the low shear rate rheology should be maintained at approximately 30,000 cps. In addition to adequate additions of FloVis Plus, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. => DRILL SOLIDS - MBT - The MBT should be kept at less than 7.5 ppb in the intermediate and production intervals through aggressive use of solids equipment and dilution as needed. => MIXING CONDITIONS - Whenever possible all treatments to the mud system should be made as pre-mix additions. Polymers and KCI should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. => CORROSION - Conqor 404 additions should be made daily when drilling with FloPro fluid in order to maintain a Conqor 404 concentration of +/- 2000 PPM. => CORRISION - SafeScav NA additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm => SOLIDS VAN USAGE - The Solids Van should be used whenever drill solids become un- acceptably high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should not be the determining condition for when to use the Solids Van. => WEIGHTING UP - All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. r:zj _.FE ~~ . . - _IFE Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. Interval Summary -16" hole 0- ZIOO' Drilling Fluid System Gel/Gelex Spud Mud Key Products MI Gel / Gelex / Soda Ash / Caustic Soda / MI Bar / PolyPac Supreme UL Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens - 150 - 180 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions nterval Drilling Fluid Properties Depth Mud Funnel Yield API Interval Weight Viscosity Point Fluid Loss (Ct) (ppg) (sec.!qt) (lb.!100ft2) (ml/30min) 0-2100' 8.6 - 9.4 60 - 100 25 - 35 NC - 12 pH Drill Solids (%) +/- 9.5 <7% ~ Treat drill water with Soda Ash to reduce hardness. ~ Build spud mud with 20 - 25 PPB M-I Gel to +/- 100 seconds/quart funnel viscosity. ~ Lower funnel viscosity to +/- 75 after gravel zone has been drilled. ~ Add Gelex as needed to maintain sufficient viscosity for hole cleaning. ~ Increase funnel viscosity if fill on connections begins to occur. ~ Reduce fluid loss with additions ofPolypac Supreme UL prior to running surface casing. ~ Add SafeScav NA to maintain a DO of < 3 PPM. ~ Condition mud prior to cementing casing to reduce yield point and gel strengths. ~ Estimated volume usage for interval - 2230 barrels. ~ Estimated haul off volume - 4180 barrels. ~.IÆ ~~ . . 91Æ - Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. Interval Summary - 12-1/4" hole 2100 Drilling Fluid System Flo-Pro Fluid Key Products Flo- Vis / PolyPac Supreme UL / KCI / SafeCarb F & M / MI Bar / Caustic Soda / Conqor 404 / SafeScav NA / Lubetex Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens - 210 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions ~/,' <,j~'\ .;~;~,; .\<>,. . ", . ..¿>.~/. ..;,,::.<:,%~~t . <i)'\t <,>(/; Q:terval\o/Dl1illi.gg'.J1lmd IIrop,erties <;.. ;~;: Mud Plastic LSRV Weight Viscosity 1 min (ppg) (cp.) (cps) 9.0- < 9.5 8 - 12 30,000+ Depth Interval (ft) 2100 - 7595' < 7.5 Drill Solids (%) +/- 5% API Fluid Loss (mI/30min) 7-9 MBT ~ Use one rig pit to drill out surface casing. In other rig pits, build new Flo-Pro fluid using the enclosed fluid formula. ~ After drilling out surface casing, displace hole to Flo-Pro fluid prior to running leak offtest ~ Ifrunning coals become a problem, treat with a 2 PPB addition of Asphasol D. ~ Iftorque or sliding problems occur, add 1 - 3% Lubetex. ~ NOTE: This fluid will be used in the production interval. It is inherent to maintain proper fluid properties for that purpose. ~ Estimated volume usage for interval - 3646 barrels. ~ Estimated haul off volume - 6408 barrels. ~ Condition mud prior to running 9-5/8" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. r:zj ..FE ~ Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. 12- 2100 - No 6 1 2 3 4 5 6 7A 7B 9 Water Soda Ash Flovis Pol ac Su reme UL Caustic Soda Potassium Chloride SafeCarb F SafeCarb M If bit ballin D-D CWT ue becomes a Lubetex Reduce BHA Ballin 10 Lubricit 399 9.500 29600 3945 Barrels - Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. Marathon OiJ CQ Beaver Creek #14 Beaver Creek Field 83 Sands Max Permeabílity : Sand Control Device: 400 mDarcy © 1999-2001 M-I L.L.C - AU Rights Reserved Well Name: location: Comments: 1.0 0.9 IU c .$! .... 0.7 :z .s:;¡, 'c 1ii Q 0.6 III N (i} III 0.5 'ti i IL 0.4 III :>- ¡ "5 0.3 IE :z (.) 0.2 0.1 1)(11).2 1)(10.1 :w Ib/bbl 3.43 % 11.08 % D10 Target I Blend: 0.13 D50 Target I Blend: 20.0 D90 Target I Blend: 64.9 1.5 microns 16.5 microns 135.4 microns Brand Name B=Safe-Carb 10 (F) D=Safe.carb 40 (M) E=Safe-Carb 250 (C) Bridging Agent IIb/bbßfol % 9.9 4926 10.1 50.14 0.0 0.00 B 49.3% Calcium Carbonate added: Avg Error 0 -100 % CPS Range: Max Error 0 -100 % CPS Range: 1)(10° 11(101 1)(102 Particle Size (microns) 1)(103 1)(104 y Zone of interest - Sterling B-3 sands )0- Pore Pressure - 4.3 - Maximum Porosity - 400 mD )0- Measured Depth - +/- 5400' (4960' TVD) )0- Build additional volume as needed usin2: the blend listed above. . . AIFE -- Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. Interval Summary - 8-1/2" hole Drilling Fluid System Flo-Pro Fluid 1595 :. 9360', Key Products Flo- Vis / DualFlo / KCI / SafeCarb F / MI Bar / Caustic Soda / Conqor 404 / SafeScav NA Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens - 210 - 230 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions J> n(éJ:'V~t' !)riÎliø.g I:lu'tl;~ttbJ'ef1iéS Depth Mud Plastic LSRV Interval Weight Viscosity 1 min (ft) (ppg) (cp.) (cps) 7595 - 9360' 9.0 - < 9.5 10 - 14 30,000+ < 7.5 Drill Solids (%) +/- 5% API Fluid Loss (ml/30min) 6-8 MBT >- Pre-treat drilling fluid with Bicarb and/or citric acid prior to drilling cement. Aggressively treat out cement contamination as soon as feasible. Build additional dilution volume to maintain proper specifications. >- Ifrunning coals become a problem, treat with a 2 PPB addition of Asphasol D. >- Estimated dilution volume for interval- 372 barrels. >- Estimated haul off volume - 1922 barrels. >- Condition mud prior to running 3-1/2" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. r:lj .IÆ ~~ Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. - al from 7595- In ut No 6 1 0.929 2 0.000 0.10 3 0.005 1.34 4 0.004 1.33 5 0.022 7.56 6 0.025 8.68 8 0.004 1.43 0.001 0.23 10 0.25 12 7.00 13 1.33 Wellbore Stability 372 Barrels Marathon Oil Company Wen Name: BeaverCreek Location: Corrosion Control Additive in Casing Well Beaver Creek #14 Volumes: 3·1/2" Tubing Tbg 3.50 x 2.992 x 9360 ft Open Hole x Tbg ~ 9.625 J( 8.681 @ 7595 ft MD .- 8.500 x 3.50 @ 9360 ft MD Treatment Procedures. 1. After the 3·1/2" tubingis runandth~ drilling fluid is circulated and an additional 465 barrels of driIHngfluid. 2. Add 1 drum of Conqor 303A for each 100 barrels of drilling fluidpump~d 3. After the 465 barrels of drilling fluid with Conqor 303A have been This procedure will place corrosion control in the3.1/2"x 9·5/S"annulus. . . Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. HSE Issues HANDLING OF DRilLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office ofthe Drilling Fonnan. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for infonnation. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. rnJ SIÆ ~~ Product Function M-I BAR M-I GELEX FLOVIS DUAL-FLO POLYPAC Weighting Viscosity control Viscosifier XCD Viscosifyer HEC Loss Circulation Materi Safe-Carb F,M,C Bridging and weighting agent LO W ATE agent M-I Seal Mix II F,M,C DESCO CF SPERSENE CF TANNATHIN VENTROL 401 SALT (Solar) BROMIDE (NaBr) & Brine Solution POTASSIUM CHLORIDE - Dispersant Dispersant Surfactant Densifier Densifier Shale Inhibitor Product CAUSTIC SODA USTIC POTASH EN CIDE 25G - DE FOAM X - G-SEAl Well Name: Location: Function . . _FE Marathon Oil Company Well Name: Beaver Creek # 14 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 - Severe hazard 3 - Serious hazard 2 - Moderate hazard 1 - Slight hazard o - Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A - Safety Glasses B - Safety Glasses, Gloves C - Safety Glasses, Gloves, Synthetic Apron D - Face Shield, Gloves, Synthetic Apron E - Safety Glasses, Gloves, Dust Respirator F - Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G - Safety Glasses, Gloves, Vapor Respirator H - Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I - Safety Glasses, Gloves, Dust and Vapor Respirator J - Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K - Air Line Hood or Mask, Gloves, Full Suit, Boots X - Consult your supervisor for special handling directions ~.IÆ ~~ Marathon Oil Well Name: Beaver Location: Kenai, e MI Project Engineer and Tech Service Engineer will coordinate between the warehouse, and the M - I field engineers. 4& Well progress will be monitored to look for any changes, which will improve operation or avert trouble. Proj eel Team Brad BiUon Title Work Sr. Area Manager 907274-5526 Tech Service 907 274-5027 Project Engineer 907 274-5501 Warehouse Manager 907 776-8680 Senior Engineer 907 248-5857 Sales Engineer 907 235-0598 Paul Hanson Tony Tykalsky Gus Wik Bob WiUiams Locke Rooney the · Ala.USiness Unit Ætj/ /~ /.,L../ /J1y ðr-Tj¿ C Je Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519·6168 Telephone 907/561-5311 Fax 907/564-6489 May 12, 2004 Mr. Robert Crandall Alaska Oil and Gas Conservation Commission 333 West th Avenue, #100 Anchorage, AK 99501-3539 RECEI\/J::f) MAY 1 3 2004 RE: Location Exception Application Marathon Oil Company Beaver Creek Unit Well #14 Kenai Peninsula Borough, Alaska Alaska Oil & Gas Gons. t,;ornmlssion Anchorage Dear Mr. Crandall: Marathon Oil Company respectfully requests the following location exception for the referenced well: Surface Location: 111' FSL & 1325' FEL, Section 33, T7N, R10W, S.M. Target: Multiple Lower Beluga Gas Reservoirs between 6855' and 8490' TVD. Top Lower Beluga Formation Estimate @ 6855' TVD, 7554' MD 2051' FSL & 243' FEL, Section 33, T7N, R10W, S.M. Bottom Hole: Estimate @ 8490' TVD, 9194' MD 2051' FSL & 243' FEL, Section 33, T7N, RlOW, S.M. Down hole reservoir pressure data acquired in Well BCU #13 demonstrates that at 160 acre well spacing (3000' well radius) numerous Lower Beluga reservoirs show no pressure depletion. Beluga reservoirs are highly laterally discontinuous and will require a smaller drainage area for efficient gas recovery. The target and bottom hole location is approximately 1650' from Lower Beluga producing zones in Well BCU #9. However, at this location it is anticipated that Well BCU #14 will encounter several undepleted reservoirs which will be perforated for completion and production. A standard open hole logging suite (including RFT pressure measurement) will be acquired in this well to verify reservoir quality, fluid saturation and pressure. Attached is a plat showing the BCD surface locations, well paths and top of Lower Beluga cut points, Also attached is a pre-drill directional survey for Well BCU #14. Furthermore, the parties listed on Exhibit "A" are entitled to notice of this application and have been duly notified. Environmentally aware for the long run. . . Mr. Robert Crandall Alaska Oil and Gas Conservation Commission May 12,2004 Page 2 Should you have any questions regarding the technical aspects of this application, please contact Bob Lanz at (907) 564-6427. f1r~ ~Ck Riddle Land Manager Attachments . . Name Cook Inlet Re ion, Inc. U.S. Dept. of the Interior Bureau of Land Mana ement Exhibit "A" . Beaver Creek Unit Well #14 Location Notification List Attention Land Mana er Greg Noble Address PO Box 93330 6881 Abbott Loo Rd. Cit Anchora e Anchorage State AK AK Zi 99509-3300 99507-2591 . . . AFFIDA VIT Comes now 1. Brock Riddle, and first being duly sworn upon his oath, states and deposes as follows: 1. That I am a legal resident of Anchorage, Alaska over the age of 21 years and mentally competent to make this affidavit. 2. That I am knowledgeable and fully informed concerning the facts contained in this affidavit. 3. That for approximately the past seven years I have worked in Alaska for Marathon Oil Company (MaC) as Land Manager. 4. That I have assisted in preparing a notification list for a Location Exception application for the Beaver Creek Unit #14 well with a surface location in Section 33-7N-lOW and bottom hole location in Section 33-7N-lOW. 5. That on or about May 12,2004 MaC employees mailed notice of the Beaver Creek Unit 14 Well Location Exception application to all of the mineral owners within a 3000' radius of the proposed well location by certified mail, return receipt requested. I have attached a list of these mineral owners to this affidavit as Exhibit "A". The postal return receipts will be made available for inspection by proper parties. I believe that we have mailed the notice letters to good current addresses In view of the foregoing facts, affiant herein states and deposes that Marathon Oil Company as operator of the proposed Beaver Creek Unit #14 well has made a reasonable and diligent effort to identify, locate and contact all parties legally due notice of the said Location Exception application. (YìCLu JJ-, dUCY Date 0 ST ATE OF ALASKA ) )ss. ) THIRD JUDICIAL DISTRICT This certifies that on May Ijl~ 2004, before me, a notary public in and for the State of Alaska, duly commissioned and sworn, personally appeared 1. Brock Riddle. Attorney-In-Fact. Marathon Oil Company, known to me to be the person described in, and who executed the foregoing agreement, who then after being duly sworn according to law, acknowledged to me under oath that he executed same freely and voluntarily for the uses and purposes therein mentioned. WITNESS my hand and official seal the day and year in this certificate first above written. ..: ~,~-"1 ~ f[;t Ur'· ," .,t·,~,,~!;~;\,.íl t ,~~ j f Î/ili/ oF,þ ,_:8;,;··'~\..L J. .?~'% .:..;.,'. ~T,;,- ......... '<';;A _ ~, .'<~ -", ..' ....." 'Z- """,~......, '.-~. '2$ .' '. ~ ~ ~ ... ...þ'~ ~ f NOTARY~ ~ ~ :~ P-UBLIC j v. ~ ~~... ... ~§ .~ '. ....... § ~ú'/:.... ..,~.~. ~ -1l'ï:·......···'j..S ~ .~ ç OF t>.\. ~ r¡1111!11f 11I\\\\\\\~ _''11~ . . Winton, As per our conversation on your recommended corrections, please find attached a revised drilling program as well as a Form 10-401 for Beaver Creek #14. I contacted David Castillo, the engineer who programmed these wells to confirm the changes. Here is a summary of the changes you had discovered. · The pore pressure stated for Upper and Middle Beluga in the Geoloaic Proaram Summary of the two wells was incorrect at 9.9 ppg. As seen on the permit for Beaver Creek #13, these zones are normally pressured at 8.5 ppg. Therefore, a mud weight of 9 - 9.5 ppg should be more than sufficient to control the well hydrostatically. · Given the potential of a 9.8 ppg pore pressure for the Lower Beluga LB-30, the recommended mud weight for this hole section has been increased to 9.0 - 10.0 ppg. We will have sufficient weighting material to have a mud system that can hydrostatically control this zone or higher. It is anticipated that this zone is of a very low permeability, so we don't anticipate any significant gas entry even if the fluid system was below 9.8 ppg. Glacier 1 monitors gas and our crews will respond quickly to any gas increases seen. Recent drilling in the Beluga at Beaver Creek 10, 11, and 13 has not detected any gas influx with our current mud system. · The cement volumes were corrected on the Beaver Creek #14 program and permit to reflect normal calculated volumes of 50% excess over gauge hole. When a caliper log is available we typically pump 25% excess. These numbers are based on actual cement return volumes and bond logs. You had indicated you would make the changes to the previously submitted 10-401, but I wanted to include a corrected copy here for your convenience. Also the drilling program reflects the changes. If you have any additional questions please contact me at your convenience. Respectfully, Will Tank Marathon Oil Company «BC 14 10-401 Permit.pdf» «BC 14 Permit Drilling Program.zIP» 1410-401 Content-Description: BC 14 10-401 Permit.pdf Content-Type: application/octet-stream Content-Encoding: base64 14 Permit Drilling Content-Description: BC 14 Permit Drilling Program.ZIP Content-Type: application/x-zip-compressed Content-Encoding: base64 . . STATE OF ALASKA ALASKA Oil AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 MC 25.005 1 a. Type of Work: Drill[I RedrillD 1 b. Current Well Class: ExploratoryD Development Oil D Mulliple zone[I Re-entryD Stratigraphic Test D serviceD Development Gas [I Single zoneD 2. Operator 5. Bond: [I Blanket D Single Well D 11. Well Name and Number: Name: Marathon Oil Company BCU-14 Bond No. 5922534 3. Address: P.O Box 3128 6, Proposed Depth: 12. FieldlPool(s): Houston. TX 77253-3128 MD: 9361 ft TVD: 8782 ft Beaver Creek 4a. Location of Well (Govemmental Section): 7. Property Designation: Beluga Pool A-028083 Surface: 113' FSL 1388' FEL Sec. 33 T7N R10W 8. Land Use Permll: 13. Approximate NIA Spud Date: 30-Jun-04 Top of Productive Horizon: 2069' FSL 336' FEL Sec. 33 T7N R10W 9. Acres in Property: 14. Distance to 1560 acres Nearest Property: otal Depth: 2082' FSL 329' FEL Sec. 33 T7N R10W 4950ft 4b. Location of Well (State Base Plane Coordinates): 10. KB elevation 15. Distance to Nearest RKB-MSL 162 feet Well wllhin Pool: 1650ft Surface: x- 314368.188 y- 2430071.363 Zone- 4 (Height Above GL): 21 feet BCU-9Beluga 16. Deviated Wells: 17. Anticipated Pressure (see 20 AAC 25.035) Kickoff Depth: 2200 ft. Maximum Hole Angle: 23.02" Max. Downhole Pressure: 2426 psig. Max. Surface Pressure: 2395 psig. 18. Casing Program: Specifications Setting Depth Quantity of Cement Size Top Bottom c.f. or sacks. Hole Casing Weight Grade Coupling Length MD TVD MD TVD (Includina Stage Data) Driven 20 in. 133 K-55 BTC 100ft 0 0 100ft 100ft NIA 16 in. 133/8 in. 68 K-55 BTC 2100ft 0 0 2100ft 2100ft , 541 sacks 121/4 in. 9518 in. 40 L-80 BTC 7595ft 0 0 7595ft 7017ft 1506 sacks 81/2 in. 31/2 in. 9.3 L-80 8rd 9360ft 0 0 9360ft 8782ft 898 sacks 19, . PRESENT WELL CONDITION SUMMARY (to be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft.) Plugs (measured) Effective depth MD (ft) Effective Depth TVD(ft): . Junk (measured) Casing Length Size Cement Volume MD TVD Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing FeeD BOP SketchD Drilling Program D Timev. Depth PlotD Shallow Hazard AnalysisD Property PlatD Diverter Sketch D Seabed ReportD Drilling Fluid Program D 20 AAC 25.050 Requirements D 21. Verbal Approval: Commission Representative: Date: 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name David R. Castillo nle Senior Drilling Engineer Signature Phone 713-296-2350 Date December 18, 2003 Commission Use Only Permit to Drill I:PI Number: I~ermit Approval I ~ee cover letter for Number: 50- Date: other requirements. Conditions of approval: Samples required DYes DNO Mud log required DYes DNO Hydrogen sulfide measures DYes DNo Directional survey required DYes DNO Other: BY ORDER OF Approved by: COMMISSIONER THE COMMISSION Date: . . MARATHON MARATHON Oil COMPANY DRilliNG PROGRAM BCU-14 PERMIT REVISION 1 May 20, 2004 Originator: David R. Castillo Drilling Supervisors: Roland Lawson Drilling Superintendent: Peter Berga . . Table of Contents General Well Data........ .... ..... ...................... ...... ......... ...... ............ ............ ............... ............ ...... ...... ...... ........ ..... .......... ........... 1 Geologic Program Summary. ...... ......... ..... ...... .... ..... ... ... .... ...... ..... ....... ........ ......... .... ..... ............ ..... ...... ...... ....... ....... ..... ......... 1 Summary of Potential Drilling Hazards ...................................................................................................................................3 Formation Evaluation Summary. .., .... ........ .... ......... ...... ...... ... .......... ..... ...... ....... ................... ... ......... ...... ...... ....... ...... ...... ........3 Drilling Program Summary............................................................................................................................... ....................... 4 Casing Program.. ........... ....... ..... ...... .... ......... ............... ..... ...... ....... ........ .... ......... .......... ...... ........ .... ........... ........ .......... ... ........ 5 Casing Design.................................................................................................................................. ....................................... 5 Maximum Anticipated Surface Pressure ...... .... ...,....... ....... ...... ...... ........ .... ..... .... ...... ........ ....... ...... .... ..... ......... ........ ......... .,....5 BOPE Program ... ......... ........ ....... ..... ............ ... ............. ...... ... ......... ..... ....... ...... .................. .... .... ... ...... ..... ......... ...... ...... ...... ....7 Directional Program Summary.....,............................................................................................................................ .............. 8 Directional Surveying Summary............................................................................................................................... ............... 8 Drilling Fluid Program Summary .............................................................................................................................................9 Drilling Fluid Specifications ......... ...... .......... ...... ......... ...... ...... ... ..... ........ ......... ...... ...... ...... ............. ..... ........ .... ......... ......... ......9 Solids Control Equipment........................................................................................................................... ............................. 9 Cement Program Summary .... ............ ............... ............... ............ ..... ....... ...... ........ .... ............ .............. ...... .......... ...... .......... 10 Regulatory Waivers and Special Procedures ............................................................................,...........................................10 Hydraulics Summary. .............. ....... ......... ......... .................. ...... ...... ..... ....... ...... ......... ..... ........... ...... ...... ...... ......... ................. 11 Formation Integrity Test Procedure.. ,........ ........... .......... ...... ... ............ ......... ........ ..... ....... ............ ...... ...... ..... ................ ....... 11 General Well Data Comments: Geologic Program Summary . . NA DD.03.09540.CAP.DRL 30-Jun-04 NA Exploitation Inlet Drilling Glacier 1 BGU-14 X: 2430071.363 Pad #1A 21.0 ft 141.0ftft RKB NA 5550.68 5122 1176 4.4 Sandstone Gas / Water 5731.75 5272 2161 8.0 Sandstone Gas / Water 6378.69 5842 2577 8.5 Sandstone Gas 7009.00 6439 2841 8.5 Sandstone Gas 7595.44 7017 2440 to 3387 6.7 to 9.3 Sandstone Gas 7665.65 7087 3053 8.3 Sandstone Gas 7765.81 7187 2703 7.2 Sandstone Gas 7840.85 7262 1936 5.1 Sandstone Gas 7910.86 7332 2107 5.5 Sandstone Gas 7985.86 7407 1492 to 2758 3.9 to 7.2 Sandstone Gas 8100.86 7522 2483 6.4 Sandstone Gas 8170.86 7592 2246 to 3704 5.7 to 9.4 Sandstone Gas 8240.86 7662 2267 to 3738 5.7 to 9.4 Sandstone Gas 8325.86 7747 2613 to 3779 6.5 to 9.4 Sandstone Gas 8410.86 7832 3414 8.4 Sandstone Gas 8500.86 7922 3657 8.9 Sandstone Gas 8590.86 8012 2233 5.4 Sandstone Gas 8655.86 8077 3396 8.1 Sandstone Gas 8780.86 8202 2852 to 4001 6.7 to 9.4 Sandstone Gas 8870.86 8292 4238 9.8 Sandstone Gas 8970.86 8392 2918 to 4094 6.7 to 9.4 Sandstone Gas 9030.86 8452 2939 to 4123 6.7 to 9.4 Sandstone Gas 9065.86 8487 2951 to 4140 6.7 to 9.4 Sandstone Gas 9230.86 8652 1805 4.0 Sandstone Gas Comments: Parts of table completed with data from BC 13 RFT Y: 314368.188 Beaver Creek Kenai Borough Alaska 9361 ft 8782 ft page 1 of 11 . . Township 7N, Range 10W Seward N 60038' 15.309" W 1510 2' 45.491" 2430071.363 314368.188 NAD27 ASP ZONE 4 7595.44 7017 2069 ft FSL, 336 ft FEL, Section 33, T7N, R10W 1939.64 1081.81 Circular - 100 7665.65 7087 2074 ft FSL, 333 ft FEL, Section 33, T7N, R10W 1 084.48 2226.40 Circular - 100 7765.81 7187 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1087.20 2231.98 Circular - 100 7840.85 7262 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.40 2234.45 Circular - 100 7910.86 7332 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.87 2235.42 Circular - 100 7985.86 7407 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 8100.86 7522 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 8170.86 7592 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 8240.86 7662 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 8325.86 7747 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 8410.86 7832 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 8500.86 7922 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 8590.86 8012 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 8655.86 8077 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 8780.86 8202 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 8870.86 8292 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 8970.86 8392 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 9030.86 8452 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 9065.86 8487 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 9230.86 8652 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 2082 ft FSL, 329 ft FEL, Section 33, T7N, R10W 1088.89 2235.46 Circular - 100 Comments: page 2 of 11 . . Summary of Potential Drillin~ Hazards Lost Circulation The Sterling B-3 sands are approximately 1176 psig and 400 md perm. The Lower Beluga intervals have SBHP's that range from a 0.31-.46 psilft. Control losses by using sufficiently sized LCM. Keep the drill pipe moving and avoid if possible excess overbalance. Maintain low fluid loss and thin impermeable filter cake. Circulate hole clean before tripping. Do not POOH or RIH faster than 30 sec/stand Differential Sticking Surge/Swabbing Comments: Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the drillers dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as waming signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC. This well's primary objective is gas and no oil sands are expected to be encountered. No H2S is anticipated. Gas sands will be encountered from the top of the Sterling B-3 +1- 5,550 ft MD RKB (5122 ft TVD RKB) to total depth of the well. These sands will be normally pressured. Formation Evaluation Summary None None Rig Watch/Basic Intermediate 2,100 ft --' 7,595 ft MD Production 7,595 ft - 9360 ft MD None Reeves - Quad Combo Basic with GCA, shale density, temperature in and out, sample collection (10' samples). Basic with GCA, shale density, temperature in and out, sample collection (10' samples). None Cased hole- Gamma Ray/Neutron Completion NIA GRlNeutron, CCL NIA Coring Requirements: None Comments: EXCAPE Completion page 3 of 11 . . Drilling Program Summary CONDUCTOR: 1. Drive 20" conductor to +1- 100 ft. RKB. 2. Move in and rig up the Glacier 1 rotary drilling rig. 3. Install starting head 20" SOW x 21 1/4", 2M flanged. 4. Nipple up 21 1/4", 2M diverter, 16" diverter valve, and 16" diverter line. 5. Function test diverter and diverter valve. SURFACE: 1. Drill a 16" hole to 2100 ft (2100 ft TVD) with Spud Mud. 2. RIH with 133/8" casing and hang off in the slips. Make up stab-in sub and centralizer on 5" drill pipe. TIH with inner string and latch into stab-in float collar. Cement 13 3/8" casing. Sting out and circulate drill pipe clean. TOOH with inner string. 3. PU 133/8" casing, set casing slips in 20", cut off 13 3/8", ND diverter. 4. Install 13 3/8" slip lock connection X 13 'Yo" 5M-flanged multibowl wellhead. 5. NU 13 'Yo" 5M BOP'S. Test BOP'S and choke manifold to 250/2800 psi. 6. Set wear bushing. 7. Test surface casing to 2,000 psi. INTERMEDIATE: 1. Drill out float equipment and make 20' of new hole. 2. Displace spud mud with FloPro. Circulate mud until mud weight in equals mud weight out. 3. Test shoe to leak-off. Estimated EMW is 14.53 ppg. 4. Drill 12 1/4" directional hole to 7595 ft MD (7017 ft TVD) as per directional plan. 5. Make wiper trip. 6. Change out variable pipe rams with 9 'Yo" casing rams. Run test plug and test BOP casing rams to 250/2800 psi. 7. Run and cement 9'%" casing. Land hanger in multibowl wellhead. 8. Back out landing joint. Change out 9 'Yo" BOP casing rams with variable pipe rams. Run test plug and test BOP pipe rams to 250/2800 psi. 9. Set wear bushing. Test casing to 2,000 psi. PRODUCTION: 1. Drill float equipment and 20' of new formation with an 8 W' bit. Circulate mud until mud weight in equals mud weight out.. 2. Test shoe to leak-off. Estimated EMW 15.01 ppg. 3. Drill an 8 W' hole to 9361 ft MD RKB (8782 ft TVD) per the directional program. 4. TOOH. RU logging company. Run open hole logs as per plan. RD logging company. 5. TIH to TO for wiper trip. TOOH and lay-down BHA and drill pipe. Pull the wear bushing. 6. Run 3 W' EXCAPE casing string. RU logging company to correlate EXCAPE modules to open hole logs. RD logging company. 7. Cement 3 %" casing while reciprocating. Bump plug with 500 psi over displacement pressure. wac. 8. PU 3 W' casing. PU BOP stack. Run control and electric lines out tubing head outlet. Set slips. Cut 3 W' casing. 9. LD BOP. Set 3 %" packoff. NU 13 'Yo" 5M X 3 Ys" 5M tubing head adapter and 3 Ys" 5M tree. Test tree to 5,000 psi. 10. Rig down and move out drilling rig. Note: Perforating guns will be run on the outside of the 3 %" production casing with a flapper valve just below each perforating gun. Guns are to be activated by a control line to surface. COMPLETION: EXCAPE completion will be finished without a rig. page 4 of 11 . . CasinQ ProQram 20 0 100 133 K-55 18.73 18.543 BTC Driven 3056 1496 2125 133/8 0 2100 68 K-55 12.415 12.259 BTC 14.375 Diamond 16 3454 1949 1069 95/8 0 7595 40 L-80 8.835 8.75 BTC 10.625 Diamond 121/4 5745 3087 916 31/2 0 9360 9.3 L-80 2.992 2.867 8rd 4.5 3,200 81/2 10160 10535 207 Comments: CasinQ DesiQn 20 130.1 K-55 100 NA NA NA NA 100 33.49 16.74 13% 68 K-55 2100 9.4 14.59 8.4 1382 2.50 1.90 4.69 9% 40 L-80 7017 9.5 15.59 9.22 2386 1.15 2.68 2.64 3% 9.3 L-80 8782 10.0 15.81 9.43 2386 1.29 2.43 1.61 Comments: Maximum Anticipated Surface Pressure 13% 9% 2100 7017 2665 4414 1382 2386 2386 70/30 70/30 0/100 3 % 8782 5000 * MAWP = Maximum Allowable Working Pressure. ** MASP = Maximum anticipated surface pressure page 5 of 11 . Comments: MASP calculated as the lesser of MASPfrac and MASPbhp 13 3/8 inch Surface Casino TVDShoe:= 2IDO·ft TVDOH := 7017·ft F mud := 30% FG := 14.59·ppg psi P gas := O.l·ft Pmud := 9.5·ppg MASP fÌ"ae := FG· TVDShoe - (p gas' TVDShoe) MASP fÌ"ae = 1382 psi BHP:= PP·TVDOH MASPbhp := BHP - (Fmud·TVDOH·Pmud) - [( 1- Fmud)·TVDOH"PgaJ MASP bhp = 1831 psi MASP := mi~MASPfrae,MASPbhp) MASP = 1382 psi 9 5/8" Intermediate CasinQ TVDShoe:= 7017·ft TVDOH := 8781·ft Pmud := 9.50·ppg FG := 15.59·ppg psi Pgas:= O.l·ft F mud := 30% MASP me := FG· TVDShoe - (p gas' TVDShoe) MASP frae = 4981 psi BHP := pp. TVDOH BHP = 4302 psi MASPbhp := BHP - (Fmud·TVDOH"Pmud) - (1- Fmud)·TVDOH·Pgas MASPbhp = 2387psi MASP := mi~MASPfÌ"ae,MASPbhp) MASP = 2387 psi page 6 of 11 . PP := 9.22·ppg PP := 9.43·ppg . . 3 1/2" Production CasinQ Modified Chevron Formula psi C1 := -0.161·- ft C2 := 0.9394 C3 := 260'psi P gas := 0.65 PP := 9.4·ppg TVDShoe := 6031· ft MASP := (C¡·Pgas·TVDShoe) + (C2·PP.TVDShoe) + C3 MASP = 2395 psi BOPE Program Surface 13% 2665 1382 2000 9 (1) Hydril21 Yo" 2M MSP Diverter with 16" Line (1) 13-5/8" Hydril GK 5M annular (1) 13-5/8" 5M pipe ram (1) 13 5/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram (1) 135/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets 250/2800 Intermediate 9% 4414 2386 2000 9.5 250/2800 Production 3% 5000 2386 2500 9.5 250/2800 Comments: Blowout Preventers The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top and a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets. The choke manifold will be rated 3-118" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and a vacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. page 7 of 11 . . Wellhead Equipment Summary Tubing Head 13-%" 3M Studded Bottom X 13-%" 5M Fig Top, W/2, 2-1/16" 5M Studded Outlets, U, AA, PSL1, PR1 13 %" x 9 %" Fluted Mandrel 13 %" x 3 %" Manual Slip Casing Head 13-%" 3M X 13-%" Slip Loc WI 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL 1, PR1 Adapter Flange 13-%" 5M X 3-Y." 5M WI Seal Pocket and 3" H BPV Threads Comments: Directional Proaram Summary 3580.38 3498.42 2.5 0 2.5 34.51 28.28 355.15 191.08 403.29 5628.18 5185.88 0 0 0 34.51 28.28 1376.84 740.76 1563.46 7928.82 7349.91 -1.5 0 1.5 25 28.28 1968.75 1059.22 2235.60 9360.91 8782 0 0 0 25 28.28 1968.75 1059.22 2235.60 Comments: BHI proposal 5585 Directional Survevina Summary 0-2100 ft 2100 - 7595 ft 7595 - 9360 ft X X X Comments: page 8 of 11 . . DrillinQ Fluid ProQram Summary o 2100 8.6 - 9.4 Gel/ Gelex Spud Mud Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL Flo-Vis, Polypac Supreme UL, KGI, Safe Garb F & M, Barite, Caustic, Conqor 404, SafeScav NA, LubeTex Flo-Vis, DualFlo, KCI, SafeCarb F&M, Barite, Caustic Soda, Conqor 404, SafeScav NA 2100 7595 9.0 - 9.5 Flo-Pro w/ 6% KCL + Safecarb 7595 9360 9.0 -10.0 Flo-Pro wI 6% KGL + Safecarb Comments: DrillinQ Fluid Specifications 8-12 10-14 30,000+ 30,000+ NG-12 ± 9.5 7-10 ± 9.5 6-8 ± 9.5 <7% ±5% ±5% o 2100 7595 2100 7595 9360 8.6 - 9.4 9.0 - 9.5 9.0 - 10.0 60-1 00 25-35 Comments: Mllntegrated Fluids Engineering Plan, April 20th, 2004 Solids Control Equipment 2 - Derrick ModeI2E48-90F-3TA N/A 1 - Derrick Model 0522 2 - MIISwaco units Comments: The solids control equipment will consist of two flowline cleaners, a desilter, and the MI centrifuge van. Included will be equipment to de-water the underflow from the mud processing equipment to allow for disposal of the cuttings and solids by slurrification and injection into the disposal well at the KGF. page 9 of 11 . . Cement ProQram Summary 13% 9% 3% 2100 7595 9360 2100 7017 8782 12 Y. 8% 16 21 1800 7095 21 1800 6523 935 1822 757 1355 2716 1050 50% 50% 50% Comments: Excess calculated on 50% of gauge hole in the open hole. If a 4-arm caliper is run before the cement job, a cement volume with 25% excess over the caliper will be used. 3% Class "G" Class "G" 15.8 15.8 1027 479 898 2.1 1.17 1.17 1050 7095 Fresh Fresh Fresh 9% 4.97 Comments: BJ Proposal 1 00184438A, May 15, 2004 Reaulatorv Waivers and Special Procedures Requirement for 2 pipe rams, one blind ram, and one annular for a API 5K or above BOP stack. Comments: Marathon is requesting a waiver from the above regulation for the Baver Creek 14. Marathon requests that the BOP stack be configured with one pipe ram instead of two, due to rig height restrictions in the running of the 3 1/2" production casing. The height restriction involves having rig crew members routing control line and electrical line through one of the tubing head outlets after the 3 1/2" casing is cemented and the BOP stack is picked up. This is before setting the casing on slips and cutting the casing sticking up. These lines control firing of the perforating guns and the monitoring of downhole pressure and temperature in our EXCAPE completion system. A similar waiver was requested for the offset Beaver Creek Well, BC 13. No problems were encountered while doing this operation on the above well. page 1 0 of 11 . . Hydraulics Summary Rig mud pumps available are shown below. 3 National Oil Well A600PT 5 5 5 8 8 8 2,597 2,597 2,597 2.04 2.04 2.04 175/357 175/357 175/357 Surface Intermediate Production Tabulated below are the expected flow rates, standpipe pressures and nozzle sizes for each hole section. 1 -12 2100 16 659 1780 66.8 9.5 1 - 14 Wellplan hydraulics 2 -16s 7595 12.25 604 2486 170 9.88 6-13s Wellplan hydraulics 9360 8.5 500 2532 231 10.1 3-20s Wellplan hydraulics Comments: Assume 5" drill pipe Formation InteQritv Test Procedure Surface and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test the BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close the ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. page 11 of 11 Hearing Notice - Beaver Creek Unit No. 14 (BCU 14) Gas Develop... . . Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Marathon Oil Company (MOC) for a spacing exception to allow the drilling and production of the Beaver Creek Unit No. 14 (BCU 14) gas development well in accordance with 20 MC 25.055. MOC by letter dated May 12, 2004 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on May 13, 2004, has requested the Commission to issue an order in conformance with 20 MC 25.055 allowing regular production of the BCU 14 gas development well, which if productive may be open to regular production within 3,000 feet of a well drilled to and completed in the same pool. The surface location of the proposed well is 111 feet from the south line and 1325 feet from the east line of Section 33, T7N, R 1 OW, SM. The proposed bottomhole location is 2051 feet from the south line and 243 feet from the east line of Section 33, T7N, R10W, SM. The Commission has tentatively set a public hearing on this applicatíon for June 29, 2004 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by fi!ing a written request with the Commission no later than 4:30 pm on June 15, 2004. If a request for a hearing is not timely Wed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call (907) 793-1221, In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501 Written protests or comments must be received no later than June 21,2004 except that if the Commission decides to hold a public hearing, written protests or comments must be received no later than the conclusion of the June 29, 2004 hearing. If you are a person with a disability who may need special accommodations in order to comment or to attend the publíc hearing, please contact Jody Colombie at (907) 793-1221 no later than June 21,2004. John K. Norman, Chair Alaska Oil and Gas Conservation Commission Published: May 20, 2004 ADN: AO 02414038 _ÐW_"'''",,''''''~'H_''''''~''''"''''6__''__''_,,^''''''''''',X Calendar Home Webmaster 1 of 1 5/24/2004 4:07 PM 1121850 04/13/2004 NCBAS 7780 <iii@@Þ~(~ÞÄ~~m~Mji¡Ä 04/12/2004 1900010264 Marathon Oil Company P. O. Box 3128 Houston, TX 77253 R~ëttuIN1Šir~: y ~~LE DEPARTMENT Accts Payable - Customer Serv Phone: 713-296-4336 Hndlg Al Check No Check Date Bank Bank No OTAl: .....··.. ii0:ií@&W);i.@MWY 100.0 100.0 (FOLD ON PERFORATION BELOW AND DETACH CHECK STUB BEFORE DEPOSITING) 111000 ~ ~ 2 ~8 SOUl -:0 ~ ~ 20 j811 5-: 0 ~8 j ~8 ~III . . TRANSMITAL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/P ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME !3c. 4 If PTD# 2D 9- LJ~C :>( Development Service Exploration Stratigraphic CHECK WRA T ADD-ONS ~'CLUEn APPLIES (OPTIONS) MULTI Tbe permit is for a new welJbore segment of LATERAL existing well . Permit No, API No. . (Jf API number Production.sbould continue to be reported as last two (2) digits a function 'of tbe original API number stated are between 60-69) above. Pfi,OT BOLE In accordance witb 20 AAC 25.005(f), all (PH) records, data and logs acquired for tbe pilot bole must be clearly differentiated 'in botb name (name on permit plus PH) and API Dumber (50 - 70/80) from records, data and logs acquired for well (name on permit). SPACING Tbe permit is approved subject ·to fuD EXCEPTION compliance with 20 AAC 25.055. Approvalto X perforate and produce is contingent upon issuance of ~ conservation order approving a spacing exception. (Companv Name) assumes tbe liability of any protest to tbe spacing .exception tbat may occur. DRY DITCH AU dry ditcb sample sets submitted to tbe SAMPLE Commission must be in no greatertban 30' sample intervals from below tbe permafrost or from wbere samples are first caugbt and ] 0' sample intervals tbrough target zones. 1)1"5 Date: ~(t Þr \ , ~I~\ 6t{' Geologic Commissioner: Engineering Commissioner: Date 35 36 37 38 39 .S~abep _conditioo survey CQnta.ct namelphone.forweelsly progre¡¡S reports [explorato/yonly] Yes NA NA NA NA Appr RPC Date 5/25/2004 if Off-¡¡h_ore) S~ismic.analysis_ of sbaJlow gas.zooes PerlTJit .D_ata.pJeseoted on. pote.ntial oveJpres_s!Jfß _zones Geology Appr WGA Date 6/7/2004 21 22 23 24 25 26 27 28 29 30 31 32 33 34 cao be issued w/o. hydr.ogen. sulfide meaS.ures J!> pre!>ence_ of Mecbanical.coodition of wells within I\OR verilied (For_ s.erviC!'! Well only) H2S gas. proQ.able Jest to .(puJ psig CMkemanjfOld cOlTJpJies w/API.Rf'-S3. (May 64) Work will occ.ur withoutoperç¡tjon .shutdo\l\,ln_ BOPEwess raiiog appropriate; Rdjverter req.uiJed, does jt meet. reguJations_ Drilliog flujd_ program schematic_&. eq.uip Jistadequç¡te _BOPEs,d.o C,T4 B.&permafrost ApequJ'lte.tan_kageor re_Serye pit. Jta.re-prilt hasa. 10A03 lor J'lbandonment _AdequJ'lte .wellbore ¡¡eparç¡tjon .propo¡¡ed be eO approved Casiog designs ad.eQua.te for _CMT. vol adeQ u.ate to _CMT.will coyer.aJl IU)Qwn ,pro.d!Jctive borizolls knowll USDW¡¡ CMT. vol éIdeQu.ate_ to circulate on _cond.uctor. tie-in long .string to.surf ~g. 18 19 20 ca!>ing. protect!> all &. surfcsg Yes Y~$ Yes Y~s Yes Yes Y~s NA Y~s Yes Yes Y~s .Y~s Yes Yes No NA they meet reguJation i.n _comments) Test t.o .2800. psi. .MSf' 23.95 psi. MaxMW 10,0 ppg. Glacier !\Jew welt I\de.q!Jate exce!>s, Engineering Appr RPC 5/25/2004 Date _U_niq!Je well Administration 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 _Cooduçtor .S_u rfaC!'! AJI weUs.withi.n.1l4_mile_area_ol reyiew jdeotified (For !>ervice\l\,lellonly) PJe-produced injector; .d!JratiQn_ol pre-prod!Jctioo less. than. 3. montbs. (For_seryice well onJy) ACMP _ =inding .of COllsi;;tency. h.as been .i!>s!Jed_ for. this project string.pJovided Can permit Well be approved before located within area and_strata J'l!Jthorized byJojectioo Order # (put 15-day wait admioistratille. approvaJ Jtdeviated, .Oper.alor only affected party _Oper:.ator has_appropriate_ Q.ond in Jorce co_nservaJion order is weJlbore plaUncJu.ded _S.utfjcient .acreag.eayailJ'lble in driUiog unjt Well Jocat.ed in.a. d_efjnedpool Well.located proper distance from driJling !Joitb.o!Jod.a/y WeJllocated pr:.oper .dislance_ from otber wells Permit fee attached _Leas.e n!Jmber .appropriat.e n_ame_and oumb_er Field & Pool BEAVER CREEK, BELUGA GAS Permit Permit can be issued wjtbout c.ao be issued wjtbout 80500 Yes Yes Y~s Yes Yes No No Y~s .Yes Yes No Y~$ No 10# in.commeots)(For.NA _NA NA NA 10.0' "(YD. Spacing exception application and hearing notice atttached RPC Conseryatioo Ord_er 23} .set;; t.his\l\,lelJ wiJI Þe located 16_50' Jrom_B.C_U_ 9. on. appr:.oJ.<.80 .ac spacing .Bel.uga PooJ spacing at 160 ç¡c. nitial ClasslType DEV Well Name: B toGAS GeoArea VER CK UNIT 14 Unit Program DEV On/Off Shore Qn Well bore seg 0 Annular Disposal 0
